The government’s move comes in light of the previous year’s slowdown in agricultural growth from 4% to 1.8%. With the upcoming budget being the final major economic document before the 2024 Lok Sabha elections, there are high expectations for increased financial assistance, building on the successful PM-Kisan Samman Nidhi introduced in the 2019 interim budget.
In addition to the anticipated increase in agricultural credit targets, industry leaders are advocating for strategic measures. The Confederation of Indian Industry (CII) suggests promoting warehousing to reduce wastage, expanding electronic Negotiable Warehouse Receipts (eNWRs), and facilitating their use in financial transactions.
Experts also emphasize the need for direct cash transfers for fertilizer subsidies, stronger support for Farmer Producer Organizations (FPOs), and increased investments in rural infrastructure, employment schemes, and irrigation facilities.
In the Union Budget for 2023–24, Sitharaman had already allocated Rs 1.25 lakh crore to the Ministry of Agriculture and Farmers’ Welfare, a significant increase from previous years. Expectations for the upcoming budget include a continuation of initiatives promoting agriculture, potentially leading to a larger allocation for established rural schemes.
Stakeholders in the agriculture sector are hopeful for an increase in PM-Kisan Samman Nidhi and expanded rural spending. The budget allocation for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) in the last budget was Rs. 60,000 crores, benefiting over 11 crore farmers through direct benefit transfers.
As the budget approaches, voices from various sectors, including seed industry leaders, stress the importance of creating a policy environment that attracts foreign direct investment, encourages innovation, and prioritizes food safety standards and technological investments. The Confederation of Indian Industry (CII) also recommends rationalizing food and fertilizer subsidies through better targeting and efficient utilization, using more current data for improved accuracy.