Union Budget 2024: What's In It For the Agri Sector Efforts of value addition and boosting farmers' income will be stepped up, said the Finance Minister

"We need to focus on the poor, women, youth and farmers/anna data. Their needs, aspirations and welfare are our highest priority. All four require and receive government support, their empowerment and well-being will drive the country forward," said Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024 in Parliament on Thursday.

She also noted that the sector is poised for inclusive, balanced, higher growth and productivity and these are facilitated by farmer-centric policies, income support, coverage of risks through price and 6 insurance support, promotion of technologies and innovations through startups.

Notably, as per a report by Avendus Capital, Indian Agritech is expected to lead the next decade's technology-first value creation opportunity, growing at a CAGR of 50 per cent over the next five years and addressing a USD 34 billion market by 2027. We have also been seeing a greater demand for technological interventions across various intersections in agricultural value chains and continued use of IoT Devices, next-gen internet connection, autonomous agricultural machinery, sustainable development and biodiversity and satellite imagery.

Here are some important takeaways for the agri sector from Union Budget 2024.

A strategy for self-reliance in oilseeds

A strategy will be formulated for achieving self-reliance in oilseeds, such as mustard, groundnut, soya bean, sesame and sunflower. This will include research in high-yielding varieties, adoption of modern farming techniques, market linkages, procurement, value addition and crop insurance. "During financial year 2022, over 37 million metric tons of oilseeds were produced in the south Asian country of India. Soyabean was the highest produced oilseed with over 13 million metric tons produced in the country that year," notes a Statista report.

Commenting on the importance of such measures, Anjali Bansal, founding partner, Avaana Capital, "The diversification of crops, particularly into robust and resilient varieties such as millets, alongside strategic support for horticulture, optimizing the post-production market linkages, not only minimizes wastage but also maximizes returns for our farmers."

These measures are crucial not only for catering to the local market but also for enhancing export opportunities, she added.

Efforts to boost farmers' income

The FM said that efforts of value addition and boosting farmers' income will be stepped up, while adding "-- Pradhan Mantri Kisan Sampada Yojana has benefited 38 lakh farmers and generated 10 lakh jobs. -- PM Formalization of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and 60,000 individuals with credit linkages."

Promotion of public and private investment in post-harvesting

Sitharaman said the government will promote public and private investment in post-harvesting agriculture activities. Notably, post-harvest loss reduction using technology has been a key focus area for the government and private companies. They have been focusing on reducing the losses during packaging, transportation and storage using various technologies. Furthermore, the FM added that the application of nano DAP on various crops will be expanded in agri-climatic zones.

Jinesh Shah, Managing Partner, Omnivore feels that despite the brevity, the interim budget offered some interesting interventions. "Specifically in the agriculture sector, encouraging public-private partnerships for post-harvest activities can directly address the chronic issues around food waste, low capacity utilization of processing units, and standardized quality," he said.

Support to dairy farmers

It was announced that a comprehensive programme for supporting dairy farmers will be formulated. " Efforts are already on to control foot and mouth disease. 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," the minister said.

Improving aquaculture productivity

The Finance Minister added that the implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be stepped up to:

• enhance aquaculture productivity from existing 3 to 5 tons per hectare
• double exports to ` 1 lakh crore
• generate 55 lakh employment opportunities in the near future

Furthermore, five integrated aquaparks will be set up. Notably, last year, the central government allocated a budget of Rs 44.50 crore to the Uttarakhand government for the construction of an Integrated aqua park in Palasia village in Sitarganj of district Udham Singh Nagar. It was announced that the aqua park will be built under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), aimed at the development of fisheries and aquaculture infrastructure in the state.