Budget 2024: Natural farming, high-yielding crops, FM Sitharaman's mega announcement for agri sector

Budget 2024: Finance Minister Nirmala Sitharaman allocated Rs 1.52 lakh crores for agriculture and allied sectors on Tuesday and outlined nine priorities that included raising productivity. During her budget presentation, she said that in the next 2 years, 1 crore farmers will be helped in natural farming. 

"New 109 high-yielding and climate resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. In the next 2 years, 1 crore farmers will be initiated into natural farming supported by certification and branding," she said.

Sitharaman said that the government will bring out a National Cooperation Policy for the cooperative sector to boost the rural economy. The government will also facilitate the implementation of Digital Public Infrastructure (DPI) in agriculture, in partnership with the states.

The finance minister listed nine priorities for the agriculture sector - productivity and resilience in agriculture, employment, and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development, and next-generation reforms. 

"We will strengthen their production, storage, and marketing," she said. This initiative aims to achieve "atmanirbharta" (self-reliance) in oilseeds such as mustard, groundnut, sesame, soybean, and sunflower.

To enhance the supply chain of vegetables, the budget proposes the development of large-scale clusters for vegetable production near major consumption centres. "Lage scale clusters for vegetable production will be developed closer to major consumption centres. We will promote farmer producer organisations, co operatives and startups for vegetables supply chains including for collections, storage and marketing," she said.

Sitharaman announced a three-year plan to facilitate the digital public infrastructure for agriculture, aiming to cover farmers and their lands comprehensively. "Our government will facilitate the Digital public infrastructure in agriculture for coverage of farmers and their lands in 3 years. During this year, a digital crop survey for Kharif using the DPI will be taken up in 400 districts."

She said a digital crop survey for Kharif crops will be conducted in 400 districts this year, integrating the details of six crore farmers and their lands into farmer and land registries. "The details of 6 crore farmers and their lands will be brought into the farmer and land registries. The issuance of jan-Samarth based Kisaan Credit Cards will be enabled in 5 states."

Recognizing the potential of aquaculture, the budget provides financial support for setting up a network of nucleus breeding centers for shrimp broodstocks. Financing for shrimp farming and exports will be facilitated through the National Bank for Agriculture and Rural Development (NABARD), aiming to boost this lucrative sector.

"Financial support for setting up a network of nucleus breeding centres for shrimp brude stocks will be provided. Financing for shrimp farming and exports will be facilitated through NABARD."

A new national cooperation policy will be introduced to ensure the systematic, orderly, and all-round development of the cooperative sector. "Our government will bring out a national cooperation policy for systematic, orderly and all-round development of the cooperative sector. Fast-tracking growth of rural economy and generation of employment opportunities on a large scale will be the policy goal."

This policy aims to fast-track the growth of the rural economy and generate employment opportunities on a large scale.

How industry reacted to announcements for agri sector 

 Anand Ramanathan, Partner and Consumer Products and Retail sector Leader at Deloitte India, said that the budget focuses on important areas such as climate-resistant seed variety distribution, scaling the digital public infrastructure, and natural farming which will improve farm-level productivity. "Mission for self-sufficiency in pulses, encouraging shrimp production and focus on vegetable production clusters will help in aligning production to emerging changes in consumption of fresh produce and proteins," Ramanathan said. 

Mahesh Girdhar, Managing Director and CEO of EverEnviro Resource, said the establishment of 10,000 need-based bio-input resource centres, and the initiation of 1 crore farmers into Natural Farming enhance prospects of sustainable agricultural development across the nation. The budget, he said, presents a "promising roadmap" towards available, accessible, and affordable energy transition.

"These initiatives will greatly boost the Compressed Biogas sector’s growth, allowing us to play a pivotal role in driving India towards a more sustainable future," Girdhar said. 

Coromandel International Executive Chairman Arun Alagappan welcomed the Budget's emphasis on strengthening the rural economy, as well as building resilience and productivity in agriculture. He said the proposed comprehensive review of the agricultural research set up to focus on improving productivity and developing climate-resilient crops will lend an impetus to ensuring that Indian agriculture can withstand climate impact. "The initiative to bring together experts from both the government and the private sector will lend a much-needed fillip to the R&D in the agri sector." 

According to him, the government's commitment to get 1 crore farmers into organic farming and promote large-scale horticulture production in the next two years will significantly increase agricultural productivity and sustainability. "The establishment of the proposed 10,000 need-based bio-input resource centres will help in making natural farming more accessible to Indian farmers," Alagappan said, adding that the emphasis on strengthening the production, storage, and marketing of pulses, along with financing for shrimp farming, showcases a holistic approach to supporting diverse agricultural activities.