Nirmala Sitharaman Approves Rs 1.52 Lakh Crore For Agri & Allied Sectors

In a major boost for the Agri & Allied sectors, Finance Minister Nirmala Sitharaman today approved Rs 1.52 lakh crore as she presented Budget 2024-25 today. The Finance Minister said the government will undertake a comprehensive review of the agricultural research setup to enhance productivity and develop climate-resilient varieties. Domain experts will oversee the conduct of this research to ensure its effectiveness and relevance.

The agriculture industry is currently facing higher food inflation and will get strong boost as the finance minister approved Rs 1.52 lakh crore for agri and allied sectors. The stocks that will benefit from the move include Kaveri Seeds and Escorts Kubota. Kaveri Seeds share gained 10.27% in trade today on BSE. Current market price of Kaveri Seeds share on BSE is Rs 1068.00 per share. Meanwhile, current market price of Escorts Kubota Ltd share on BSE is Rs 4023.65 per share with gain of 0.20%.

The FM declared that new high yielding and climate resilient varieties of 32 field and cultivation crops will be launched for farmers. The FM stated that the government will take up detailed review of research and develop climate resilient seeds.

The Finance Minister announces improvements in the agriculture industry by Digitizing public infrastructure for their lands within 3 years for 6 crore farmers in partnership with states.

Earlier, the Economic Survey 2023-24, tabled on July 22, pointed out the crucial need for all-inclusive reforms for India's agricultural sector highlighting structural challenges that might hamper country's economic growth. The Economic Survey 2023-24 was tabled by Finance Minister Nirmala Sitharaman in Parliament on July 23. It threw light on challenges in managing food price inflation, sustaining growth, improving price discovery, and handling land fragmentation.

Economic Survey 2023-24, prepared by Chief Economic Advisor V Anantha Nageswaran, emphasized the requirement for a balanced approach to offer incentives to farmers for higher production while keeping food prices under check.

"A return to roots, as it were, in terms of farming practices and policymaking, can generate higher value addition from agriculture, boost farmers' income, create opportunities for food processing and exports and make the farm sector both fashionable and productive for India's urban youth," according to the survey.

"When resolved, the problem areas mentioned above that the current policy configuration has created over the years can become sources of India's strength and a model for the rest of the world - developing and developed," it further said.

As per the survey, agriculture sector is one area ripe for and in requirement of such a pan-India dialogue.

"Agriculture and farmers matter for a nation. India is no exception. India subsidises their water, electricity and fertilisers. The former two are provided virtually free. Their incomes are not taxed."

The document highlighted other key issues, such as reducing disguised unemployment, boosting crop diversification, and increasing overall sector efficiency. It recommended a multi-faceted approach to address these challenges.

The vital suggestions included upgrading the agricultural technology, introducing latest skills in farming practices, boosting agricultural marketing avenues, stabilizing prices, adopting innovations in farming, and reducing wastages in the use of fertilizer, water, and other inputs, among others. Improving the agriculture-industry linkages was also a focal point.

The Survey highlighted that the government's policy reforms in the last few years paved way for sustained moderate to high growth in the coming years.
"To sustain growth for nearly a generation up to 2047 or more and to ensure that it makes people's lives better and fulfills their aspirations, bottom-up reforms are necessary," the Survey observed.