Agriculture Budget 2024 Speech Highlights: The Budget for 2024-25 is the first major economic document of the newly-formed government, aiming to pave the way for India to become a developed nation by 2047. Notably, upon returning for a third term, Prime Minister Narendra Modi’s first action was signing the release of the 17th instalment of the PM Kisan Nidhi scheme. In its initial cabinet session, the NDA government also approved new Minimum Support Prices (MSP) for 14 kharif crops for the 2024-25 marketing season. These strategic decisions highlight the crucial role of the farming sector in the Modi government’s vision of making India the third-largest economy. Experts predict that the upcoming budget, to be presented by Finance Minister Nirmala Sitharaman, will likely include populist measures to support farmers. The Economic Survey presented on Monday noted, “Indian agriculture is not in a crisis now but requires a serious structural transformation because climate change and water criticality loom large in the times to come.”
As the government make announcements across the sectors, we bring you the latest developments from agricultural sector in Budget 2024:
The Pradhan Mantri Kisan Maandhan Yojna (PMKMY), launched on September 12, 2019, is a central sector scheme aimed at providing financial security to the most vulnerable farming families. This contributory scheme allows small and marginal farmers (SMFs), subject to certain exclusions, to join by making a monthly contribution to the Pension Fund, with an equivalent amount contributed by the Central Government.
Farmers aged between 18 and 40 are required to pay between Rs. 55 and Rs. 200 per month until they reach 60 years of age. Upon reaching 60, enrolled farmers receive a monthly pension of Rs. 3,000, again subject to exclusion criteria.
The scheme is managed by Life Insurance Corporation (LIC) and beneficiaries are registered through Common Service Centers (CSC) and State Governments. To date, 23.38 lakh farmers have enrolled in the program.
Launched on February 24, 2019, Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a central sector initiative designed to support the financial needs of land-holding farmers, with some exclusions. The scheme offers an annual benefit of Rs. 6,000, which is paid in three equal installments every four months directly into the bank accounts of farmers’ families via Direct Benefit Transfer (DBT). So far, over Rs. 2.81 lakh crore has been distributed through DBT to more than 11 crore farmers in various installments.
1. Agriculture Infrastructure Fund
2. PM-Kisan Samman Nidhi
3. ATMA
4. AGMARKNET
5. Horticulture
6. Online Pesticide Registration
7. Plant Quarantine Clearance
8. DBT in Agriculture
9. Pradhanmantri Krishi Sinchayee Yojana
10. Kisan Call Center
11. mKisan
12. Jaivik Kheti
13. e-Nam
14. Soil Health Card
15. Pradhan Mantri Fasal Bima Yojana
The proportion of the total budget allocated to the Department of Agriculture and Farmers Welfare, which manages major schemes under the Ministry, has steadily decreased over the past four budgets, dropping from 4.4% in 2020-21 to 2.56% in 2023-24. This downward trend continued in the interim budget presented in February, with the allocation to the department falling to just 2.47% of the total budget for 2024-25.
The Centre is contemplating a new scheme with a proposed outlay of Rs 50,000 crore to encourage states to adopt agricultural reforms, according to The Indian Express. Once finalized and approved, this scheme will enable states to access central funding for implementing reforms in agriculture marketing, contract farming, and land leasing. The report further revealed that the scheme was suggested by NITI Aayog officials in a presentation to the Prime Minister’s Office shortly after the Lok Sabha election results were announced.
The Indian Council for Research on International Economic Relations (ICRIER) has emphasized the urgent necessity to double the current budgetary allocation for agricultural research and development to maximize its impact. In a quarterly bulletin released ahead of the upcoming Union Budget 2024, ICRIER indicated that achieving this goal requires nearly doubling the agricultural research and development expenditure (ARDE) from the current Rs 9,941 crore allocated to the Department of Agricultural Research and Education (DARE) over the next 2-3 years.
Read More: Study calls for ‘urgent’ need to double agriculture R&D budget – What will be its impact?
Finance Minister Nirmala Sitharaman has left from her residence. She is all set to present her 7th consecutive Union Budget today at around 11 am.
#watch | Delhi: Finance Minister Nirmala Sitharaman leaves from her residence.
— ANI (@ANI) July 23, 2024
She will present the Union Budget today at the Parliament. pic.twitter.com/FbYIdzVK5Z
Read More: FM Nirmala Sitharaman all set to present her 7th budget at 11 AM
One of the key announcements anticipated in the Budget 2024 is the expansion of the Pradhan Mantri Kisan Man Dhan Yojana (PM-KMY) for farmers owning less than two acres of land, which currently provides a Rs 3,000 monthly pension. This expansion could also involve extending the benefits of the Atal Pension Yojana (APY), which offers a maximum of Rs 5,000 per month, to include subsistence farmers with less than two acres.
– Anticipation of Production Linked Incentives (PLI) and tax incentives to boost chemical manufacturing
– Expectations for schemes designed to promote research and development in the sector
– Focus likely on Nano urea, with the Interim Budget mentioning a ₹1.64 lakh crore fertiliser subsidy
– Increased allocation for PM Kisan Samman Nidhi to benefit farmers
Here are some key takeaways from February budget:
– The government announced plans to increase both private and public investments in post-harvest activities
– Expanding the use of Nano-DAP across all agro-climatic zones and developing a strategic plan under the Atmanirbhar Oilseeds Abhiyaan to achieve self-sufficiency in oilseeds production
-Establishing a comprehensive program to develop the dairy sector
– Intensifying efforts on the Pradhan Mantri Matsya Sampada Yojana to boost aquaculture productivity, double exports, and create additional job opportunities
– Allocating increased funds for the Blue Revolution, totaling ₹2,352 crore
– Raising the allocation for the PM Formalisation of Micro Food Processing Enterprises scheme to ₹880 crore
– Integrating 1,361 mandis under eNAM to facilitate trading volumes amounting to ₹3 lakh crore
The allocations for agriculture and rural development remained substantial in the Interim Budget presented in February. The Revised Estimates (RE) for the food subsidy were ₹2.12 trillion in FY24, which decreased to ₹2.05 trillion in the FY25 Budget Estimates (BE). Similarly, the fertilizer subsidy fell from ₹1.89 trillion (RE) to ₹1.64 trillion (BE).
Let’s look back at the Interim Budget session and what all it offered to the agri sector:
The interim Budget allocated ₹1,17,528.79 crore to the Agriculture Ministry, reflecting an increase of ₹1,997 crore or 1.70% compared to the previous Budget. The revised estimates for the Ministry were ₹1,16,788.96 crore, with the actual expenditure in 2022-23 amounting to ₹99,877.01 crore.
Hello and welcome to the live coverage of Union Budget 2024-25. Upon beginning his third term, Prime Minister Narendra Modi‘s first action was to authorize the release of the 17th instalment of the PM Kisan Nidhi scheme. Additionally, in its initial cabinet session, the NDA government approved new Minimum Support Prices (MSP) for 14 kharif crops for the 2024-25 marketing season. These strategic decisions underscore the pivotal role of the farming sector in the Modi government’s vision of transforming India into the third-largest economy. Stay tuned with us here as we bring you the latest updates from the Budget session.