Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024 today, July 23, announcing a substantial allocation of ₹1.52 lakh crore for agriculture and allied sectors in FY25. This announcement, part of Sitharaman’s seventh consecutive budget presentation, has led to a significant surge in agriculture stocks.
Sitharaman emphasized the government’s commitment to transforming the agricultural landscape with a focus on sustainable practices, digital infrastructure, and boosting production.
Table of Contents
Union Budget 2024: Agricultural Sector Key Highlights
Here are some of the major updates for the agriculture sector from the Union Budget 2024:
- Promotes sustainable agriculture, reduces chemical reliance, enhances soil health, and increases farmer profitability.
- Establishment of strategically located clusters to boost vegetable production and supply.
- Introduction of 109 new high-yielding, climate-resilient crop varieties and 10,000 bio-input centers.
- Collaboration with state governments to provide farmers with weather forecasts, crop advisories, and market prices.
- Conducting a digital crop survey and issuing Kisan credit cards in five states, along with financing for shrimp farming.
- Financial support for shrimp breeding centers, farming processing and export.
- Significant gains in agriculture stocks following the budget announcement and a ₹1.52 trillion allocation for agriculture.
- Introduction of a policy for the systematic and comprehensive development of the cooperative sector.
Read More About: Budget 2024 Highlights from Various Sectors
Shift Towards Natural Farming
The key initiatives include the introduction of natural farming practices to 10 million farmers over the next two years and significant investments in irrigation and soil health improvement.
The Union Budget 2024 aims to promote sustainable agricultural practices and reduce reliance on chemical fertilizers and pesticides. Natural farming not only improves soil health and biodiversity but also lowers cultivation costs for farmers, thereby increasing their profitability.
Strengthening Agricultural Research, Developing Climate Resilient Varieties
- 109 new high-yielding, climate-resilient crop varieties to be introduced to farmers.
- Additionally, 10,000 need-based bio-input centers will be established, and efforts will be made to enhance the production, storage, and marketing of oilseeds.
- Government to conduct a thorough review of agricultural research and focus on developing climate-resilient crop varieties.
Large-scale Vegetable Production Clusters to be Promoted
- Government to promote the establishment of large-scale vegetable production clusters.
- These clusters will be strategically located to enhance production and ensure a consistent supply of vegetables nationwide.
Digital Public Infrastructure (DPI) in Agriculture
- The government to collaborate with state governments to advance digital public infrastructure.
- This digital framework will offer farmers essential information, including weather forecasts, crop advisory services, and market prices.
Read About: Budget 2024 Highlights for the MSME Sector
Kharif to be taken up in 400 districts in FY25
- Digital crop survey for the Kharif season to be conducted in 400 districts during FY25.
- Jan Samarth-based Kisan credit cards to be issued in five states, and financing for shrimp farming, processing, and export will be facilitated through NABARD.
Financial Support for Aquaculture (Nucleus Breeding Center)
- The Budget also includes financial support for shrimp production and exports.
- Sitharaman mentioned that the government will facilitate the setting up of nucleus breeding centers for shrimp rootstocks and provide financing for shrimp farming, processing, and export.
National Cooperation Policy
- A new national cooperation policy to be introduced to ensure the systematic, orderly, and all-round development of the cooperative sector.
Market Reaction to Agriculture Reforms
- The announcement led to a notable rally in agriculture stocks, with major players such as Kaveri Seed Company, Avanti Feeds, Coastal Corporation, Zeal Aqua, and BKV Industries witnessing significant gains of 2-10% post the budget announcement.
- Finance Minister Nirmala Sitharaman has also allocated ₹1.52 trillion for agriculture. Analyst predicts strong performance, especially for Kaveri Seed Company.
Related Read: How to Download Budget 2024 PDF Documents
Conclusion
To sum up, the Union Budget 2024 lays emphasis on the agricultural sector with a ₹1.52 lakh crore allocation, focusing on sustainable practices, digital infrastructure, push for natural farming, and increased productivity.