Maintaining that enhancing productivity and resilience in agriculture is her priority, Union Finance Minister Nirmala Sitharaman allocated ₹1.52 lakh crore for farming and allied sectors in the first Budget of the third Narendra Modi government on Tuesday. However, fertilizer and food subsidies were decreased, inviting flak from farmer organisations.

Ms. Sitharaman announced that the Centre will review the agriculture research set-up to bring focus on raising productivity and developing climate-resilient varieties. “New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers,” the Minister said.

She added that in the next two years, one crore farmers across the country will be initiated into natural farming supported by certification and branding. Pulses and oilseeds production will be strengthened and large-scale clusters for vegetable production will be developed closer to major consumption centres.

“We will promote Farmer-Producer Organisations (FPOs), cooperatives, and start-ups for vegetable supply chains, including for collection, storage, and marketing,” Ms. Sitharaman said.

Another major announcement was the implementation of Digital Public Infrastructure for Agriculture, and digital crop survey of kharif crops in 400 districts. The Centre will also provide financial support for setting up a network of Nucleus Breeding Centres for shrimp broodstocks through NABARD.

‘For welfare of the poor’

Union Minister of Agriculture Shivraj Singh Chouhan said the Budget is for the development of the country and welfare of the poor. The total allocation for the Department of Agriculture and Farmers Welfare is ₹1,22,528.77 crore. In the last financial year’s (2023-24) Revised Estimates, the amount was ₹1,16,788.96 crore. This included an allocation of ₹500 crore for Namo Drone Didi Scheme.

The bulk of the allocation is for the PM Kisan Nidhi. For the Department of Agricultural Research and Education, ₹9,941.09 crore has been allocated. In the revised Budget of last fiscal, it was ₹9,876.60 crore. The total allocation for the Ministry of Fisheries, Animal Husbandry and Dairying is ₹7,137.68 crore. In the last Revised Estimates, it was ₹5,614.93 crore.

Concern over cut

The allocation for the Fertilizers Department is ₹1,64,150.81 crore. In the Revised Estimates in 2023-24, the amount was ₹1,88,947.29 and the actual expenditure incurred in 2022-23 was ₹2,51,369.18 crore.

Farmer organisations expressed concern over this cut and pointed out the “huge decline” by about 34.7% in allocation for fertilizers. Compared with the 2022-23 actuals, it amounts to a decrease of ₹87,238 crore, they said. “This will have a deleterious impact on agricultural productivity,” said Samyukt Kisan Morcha leader Ashok Dhawale.

The Department of Food and Public Distribution also saw a decrease in its allocation at ₹2,13,019.75 crore. In the last Revised Estimates, the amount was ₹2,21,924.64 crore and the actual expenditure in 2022-23 was ₹2,83744.53 crore. To control the rising prices of essential commodities, the Budget has allocated ₹10,000 crore to the Price Stabilisation Fund. In the last Revised Estimates, the allocation was a mere ₹10 lakh.

Though the Budget has promised to improve the agriculture sector through cooperatives and FPOs, no allocation has been made to the Integrated Scheme on Agriculture Cooperation. In the revised Budget in 2023-24, the scheme had received ₹300 crore.