Union Budget 2024: A Missed Harvest for Agricultural Transformation?

The Union Budget 2024, while lauded for its fiscal prudence, has drawn criticism for its lackluster approach to India's agricultural sector. Despite Finance Minister Nirmala Sitharaman's rhetoric about boosting agricultural productivity and resilience, the budget fell short of delivering concrete steps to transform the agrarian landscape. Atleast, this is what some experts believe.

Recycled Promises, Stagnant Progress

The budget's emphasis on natural farming and digital agriculture was met with skepticism, given the repetition of similar promises in previous years. While the government's intention to introduce one crore farmers to natural farming is commendable, the lack of tangible progress in this area raises questions about implementation. Similarly, the proposed digital public infrastructure for agriculture, a rehash of last year's pledge, offers little in terms of novelty.

Missing the Mark on Substantive Reforms

Experts argue that the budget missed a golden opportunity to undertake bold reforms in the agricultural sector. The absence of measures to rationalize urea subsidies and redirect funds towards critical areas like agricultural research, irrigation, and market infrastructure is a missed opportunity. While the Department of Agricultural Research and Education received a marginal increase, it is insufficient to drive the kind of innovation needed to address the sector's challenges.

Farmer Distress Ignored

Dr. Yerram Raju, an Economist cum Risk Management Expert, said the budget failed to address the immediate concerns of farmers. He emphasized the need for income security and assured markets, highlighting the success of Telangana's Rayathu Bhima scheme as a potential model.

Dr. Raju advocated for a comprehensive risk-coverage system for farmers, similar to South Korea, to eliminate the need for the Minimum Support Price (MSP).

"The Budget has done injustice to the farming sector. Firstly, there is no policy for agriculture thus far. Additionally, the budget does not address how farmers benefit from their produce at the farm gate. Thirdly, it fails to address the income security of farmers. The insurance mechanisms are also not delivering as intended. For example, the government of Telangana has paid premiums directly to the Life Insurance Corporation and insured every farmer for five lakhs over the past five years.

Insurance firms claim they have incurred losses and have increased the premiums. The government was willing to pay the additional premiums, and thus the Rythu Bima scheme introduced by the government of Telangana is a good model.

Alternatively, they could have adopted the model of South Korea, where the government covers the entire insurance for farmers and all their risks. This model provides farmers with assured income and markets, even without MSP (Minimum Support Price). Farmers in South Korea can sell their produce at any market and at the price they choose," Dr Raju said.

Agri-Tech: A Double-Edged Sword

The budget's focus on agricultural futures and agri-tech startups is a step in the right direction. However, Dr. Raju cautioned that mere lip service is not enough. He emphasized the need for robust support infrastructure, including digital connectivity and efficient transportation, to enable farmers to benefit from these initiatives. The potential of agri-tech to transform the sector can only be realized with a holistic approach.

Women Farmers Left Behind

The budget's allocation for training 15,000 women under the Drone Didi scheme was deemed inadequate. Dr. Raju stressed the need to train at least 15 lakh women to harness the potential of drone technology in agriculture, particularly in states with significant female agricultural labor participation.

Dr Raju said, "In fact, it should have been 15 lakhs. If all the SHGs have been trained in drone applications and they get good fillip, then it would have been adequate. Instead of that, she has chosen only 15,000 enterprises.

And if 15 lakh enterprises or at least even Two lakh enterprises have been taken into consideration. As a first step, it would have met some needs of preponderant agricultural states like AP, Telangana, entire southern region, I would say, Maharashtra, then part of Gujarat and UP. These states would have got West Bengal too. West Bengal is also a very good agricultural state. They would have got really good benefit out of that scheme. 15,000 is a trifle. It's only an apology for announcement and not going to really help the technology driven growth in the education sector.”

The Need for a Visionary Approach

India's agriculture sector requires a long-term vision, marked by substantial investments in research, infrastructure, and technology. The Union Budget 2024, unfortunately, fell short of providing the necessary impetus for such a transformation. As Dr. Raju aptly pointed out, the budget was more of an apology for an announcement than a catalyst for growth. To truly unlock the potential of Indian agriculture, the government must adopt a more ambitious and comprehensive approach.

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