The Union Budget 2024 reinforces the government’s continued quest to transform the agri and rural sectors and shape a new paradigm of socio-economic progress. The focus on the rural economy is evident in the myriad schemes announced that seek to make inclusive growth a pillar of economic development. Apart from continuing with the allocations to all the flagship schemes that have been effective, such as the PM Kisan Samman Nidhi, PM Fasal Bima Yojna and PM Krishi Sinchai Yojna, what stands out in the proposals related to the agri and allied sectors is that they are comprehensive yet focussed. This unique balance is the recipe for transformational impact at scale.
Let me pick up four areas to illustrate this:
While India has long been acknowledged as the potential food factory for the world, such a goal can be realised only when focussed all-round efforts are made in categories where India has a comparative natural advantage, which can be converted into global competitive advantage. Seafood, together with inland aquaculture, is one such category with near-term non-linear growth opportunity, given India’s long coastline and diverse water resources. Recognising this, the government proposes to step up the Pradhan Mantri Matsya Sampada Yojana to increase productivity and double exports while generating substantial number of additional jobs.
With nearly $20 billion annual import bill on vegetable oils, the one product that offers itself as a prime candidate for aiming ‘atmanirbharta’ is oil seeds. While focus in this regard was on oil palm in the first phase, this Budget rightfully expands the attention to a more diverse set of oilseeds, such as mustard, groundnut, sesame, soyabean, and sunflower to make the strategy more robust. The effort will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition, and crop insurance.
India is already the world’s largest milk producer, but with relatively lower productivity of milch animals. That a comprehensive programme for supporting dairy farmers will be formulated, built on the success of the existing schemes such Rashtriya Gokul Mission, is another welcome step. Because, as dairying is spread across the largest number of farming families, this will have the widest possible impact on rural incomes.
Value addition to agri produce is the most sustainable method to boost farmers’ incomes. While investments in processing was the primary pillar in the past, supported by Pradhan Mantri Kisan Sampada Yojana and Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana, this Budget recognises the need for interventions along the value chain. Accordingly, attention widens to promoting private and public investment in post-harvest activities, including aggregation, modern storage, efficient supply chains, primary & secondary processing and marketing & branding.
Besides these direct interventions designed to empower the ‘Annadata’ (farmer), several other policy measures related to ‘Garib’ (poor), ‘Mahilayen’ (women) and ‘Yuva’ (youth), the highest priority segments called out in the Budget will serve the agri & allied sector well, because the farming families straddle all these sections of the society.
The writer is Group Head - Agri & IT Businesses, ITC Ltd