Budget 2024: What has Indian farmer gained?

Budget 2024: Indian Finance Minister Nirmala Sitharaman presented Interim Budget 2024 in the Parliament of India on Thursday (February 1). The budget was presented just months before India holds general elections in a few months' time. Though this was an interim budget, it does have significance considering public focus just ahead of Lok Sabha Elections 2024. Sitharaman made several important observations and announcementabout farmers. India may have transformed into an Information Technology (IT) and service sector hub, but agricultural sector still remains a source of income for millions of Indians. Provisions for this sector hence come into focus from analysts and common citizens alike.

In her budget speech, Sitharaman regarded Indian farmers as 'annadata' (provider of food). Earlier in her speech, the finance minister mentioned various steps the Government of India had taken for the benefit of farmers in the country.

"Every year, under PM-KISAN SAMMAN Yojana, direct financial assistance is provided to 11.8 crore (118 million) farmers, including marginal and small farmers. Crop insurance is given to 4 crore (40 million) farmers under PM Fasal Bima Yojana. These, besides several other programmes, are assisting ‘annadata’ in producing food for the country and the world," she said.

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Sitharaman said that government initiative of Electronic National Agriculture Market (eNAM) has integrated 1361 mandis (vegetable markets) across the county. The eNAM is India's countrywide electronic trading portal aiming to create a unified national market for agriculture produce by integrating existing networks and APMCs (Agricultural Produce Market Committees). Sitharaman said that eNAM is already providing services to 1.8 crore (18 million) farmers.

"The sector is poised for inclusive, balanced, higher growth and productivity. These are facilitated from farmer-centric policies, income support, coverage of risks through price and insurance support, promotion of technologies and innovations through start-ups," she said.

The finance minister said that in coming days, government will step up efforts for value addition in agricultural sector and for increase in farmers' income.

"Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh (3.8 million) farmers and generated 10 lakh (1 million) employment. Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh (240,000) SHGs and sixty thousand individuals with credit linkages. Other schemes are complementing the efforts for reducing post-harvest losses, and improving productivity and incomes," said Sitharaman.

Talking about steps planned for growth of the sector, she said government will look to private and public investment.

In her speech, Sitharaman also spoke of supporting dairy farmers. The minister said that a 'comprehensive programme' will be launched.

"India is the world’s largest milk producer but with low productivity of milch animals. The programme will be built on the success of existing schemes such Rashtriya Gokul Mission, National Livestock Mission, and Infrastructure Development Funds for dairy processing and animal husbandry," said the minister.

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Sitharaman said that the government will work towards achieving self-sufficiency for oil-seeds

"Building on the initiative announced in 2022, a strategy will be formulated to achieve ‘atmanirbharta’ (self-sufficiency) for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. This will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition, and crop insurance," she said.

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As she spoke about achievements of her government, Sitharaman mentioned that worries about food security have been addressed by provision of free ration to 80 crore (800 million) people through public distribution system in the country.

(With inputs from agencies)