Source-This post on Research and Development in Agriculture has been created based on the article “Neglect of agriculture R&D in budget risks India’s food security and growth” published in “The Indian Express” on 24 July 2024.
UPSC Syllabus-GS Paper-3- Government Budgeting
Context – Nearly two-thirds of India’s population resides in rural areas, where agriculture employs 45.8% of the workforce as of 2022-23. Neglecting this crucial sector could hinder the realization of Viksit Bharat@2047 and economic stability. Despite agriculture’s growth slowing from 4.7% in FY23 to 1.4% in FY24, there were high expectations for increased budgetary support.
However, particularly in research and development, the budget fell short. Investing in agricultural research and development (R&D) has the potential to boost agricultural GDP growth, with estimated returns exceeding ten times the initial investment.
What are the issues with budgetary allocation of Agriculture?
1) Inadequate R & D Expenditure-
A) Department of Agricultural Research and Education (DARE) Funding- It received Rs 99.4 billion, a slight increase of 0.7% from Rs 98.8 billion in FY24. However, this falls short of expectations and represents a decrease in real terms.
B) Agriculture Research Intensity (ARI)- It decreased to 0.43% in 2022-23 from its peak of 0.75% in 2008-09 and is expected to decline further in FY25. This trend could impact food security and may lead to increased food inflation.
2) Allocations for Agriculture and Allied Sectors -The budget allocated Rs 1.52 trillion for agriculture and allied sectors. The Ministry of Agriculture and Farmers’ Welfare received Rs 1.22 trillion (Budget Estimate), a mere 5% increase from Rs 1.16 trillion (Revised Estimate) in FY24, failing to keep up with inflation.
3) Faulty Policies and Subsidies-
A) Much of the support for the agriculture, food, and rural sectors has been directed towards welfare measures and subsidies, such as food and fertilizer subsidies. While these subsidies have boosted agriculture productivity, they have also contributed to soil fertility decline, groundwater depletion, and increased emissions of nitrous oxide and methane. These issues were recognized in the Economic Survey 2023-24.
B) They have also encouraged unhealthy diets rich in sugar and carbohydrates rather than fiber and protein, impacting public health negatively.
Read More- Revitalizing India’s Agricultural Research and Development System
What should be the way forward?
1) There is an urgent need to transform agriculture into an engine of growth through farming practices that benefit both farmers and the planet.
2) Effective policymaking through re-orienting subsidies can enhance value addition in agriculture, boost farmers’ incomes, and create opportunities for food processing and exports.
Question for practice
What are the challenges with the allocation of funds for agriculture in the budget? What steps should be taken next to address these challenges?
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