In the Budget 2024–25 presented today, Finance Minister Nirmala Sitharaman announced a comprehensive plan to enhance productivity and resilience in the agricultural sector. Among the key highlights is the introduction of 109 high-yielding and climate-resilient varieties of 32 crops to be released this financial year.
An allocation of Rs 1.52 lakh crore has been made for the agriculture and allied sectors, emphasizing the government’s commitment to bolstering the sector. Sitharaman outlined nine priorities for the year, with productivity and resilience in agriculture being a significant focus.
Key Announcements:
1. Climate-Resilient Seeds: The government will conduct a comprehensive review of agricultural research to develop climate-resilient seeds. Domain experts will oversee this initiative to ensure its effectiveness and relevance.
2. Digital Infrastructure: A three-year plan to promote digital public infrastructure for agriculture was announced. This includes a digital crop survey for Kharif crops in 400 districts, integrating data from six crore farmers and their lands into a digital registry.
3. Natural Farming: Over the next two years, one crore farmers will be encouraged to adopt natural farming practices.
4. Rural Development: An allocation of Rs 2.66 lakh crore will be provided for rural development initiatives.
5. Vegetable Supply Chain: The development of large-scale clusters for vegetable production near major consumption centres will be promoted to enhance the supply chain.
6. Aquaculture: Financial support will be provided for establishing a network of nucleus breeding centres for shrimp broodstock.
7. National Cooperation Policy: A new national cooperation policy will be introduced to ensure the systematic and orderly development of the cooperative sector.
The finance minister highlighted these initiatives as part of a broader strategy to deliver value through elevated revenue growth management capabilities.
This budget reflects a significant step towards transforming India’s agricultural landscape by enhancing productivity, resilience, and digital integration.
FMCG Leaders React to Budget 2024: Anticipate Job Opportunities and Increased Demand
In Budget 2024, Finance Minister Nirmala Sitharaman announced substantial allocations aimed at boosting infrastructure, agriculture, and rural development. The budget earmarked Rs 1.52 lakh crores for agriculture and allied sectors and Rs. 2.66 lakh crores for rural development.
Additionally, urban infrastructure received an allocation of approximately Rs. 10 lakh crores.
Leaders in the Fast-Moving Consumer Goods (FMCG) sector have responded positively, anticipating increased job opportunities, economic growth, and a rise in demand for FMCG products. They believe the Union Budget 2024–2025 takes significant strides towards the government’s Viksit Bharat vision by 2047.
Industry Reactions:
• Saugata Gupta, MD & CEO, Marico Limited: “The Rs 2.66 lakh crore outlay for rural development and Rs 1.52 lakh crore for agriculture will stabilize rural economies and provide farmers with essential resources. The budget’s focus on self-sufficiency in pulses and oilseeds and infrastructure development will enhance supply chain efficiency and widen distribution networks.”
• Mayank Shah, VP, Parle Products: “The emphasis on infrastructure and employment generation is expected to drive job creation and economic growth, significantly boosting demand for FMCG products.”
• Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt. Ltd.: “The substantial provision for rural development and the boost to road connectivity projects will improve market access and distribution networks, facilitating better reach for FMCG products in rural areas.”
• Angshu Mallick, MD & CEO, Adani Wilmar: “The Digital Public Infrastructure (DPI) initiative, including a digital crop survey for Kharif in 400 districts, will stabilize rural economies and ensure 6 crore farmers and their lands are registered, facilitating the issuance of Jan Samarth-based Kisan Credit Cards. This budget sets a promising trajectory for the agriculture sector and rural economies.”
• Abhay Parnerkar, CEO, Godrej Tyson Foods Ltd.: “The emphasis on agricultural development, particularly the creation of large-scale vegetable production clusters, strengthens the food value chain. The focus on natural farming and the growth in the frozen food category will reduce waste and nutrition loss.”
The government also announced support for marketing and financing shrimp farming through NABARD and a reduction in import duties on certain brood stock to 5%.
FMCG leaders are optimistic about the budget’s potential to generate job opportunities, drive economic growth, and increase demand for FMCG products, aligning with the government’s long-term vision for a developed India.