Farm sector’s Budget 2024 expectations

Union Budget: As the agriculture sector faces challenges such as food inflation, drought, climate change, increasing export restrictions and high import dependence for some items, the stakeholders expect the budget to address these issues. The agri industry wants better seeds for crops like cotton and oilseeds whose production is not increasing, and technological support to deal with climate change.

CLIMATE CHANGE HAS IMPACTED OUTPUT

• Production of wheat, sugar, tur, urad, chana, fruits and vegetables hit
• Farming risk has increased
• Food inflation has remained elevated

IMPORT DEPENDENCE HIGH FOR SOME CROPS

• For many crops, India’s high import dependence continues

High-import farm items

• Tur, urad, chana, yellow peas, cooking oils

LACK OF POLICY STABILITY:

• Frequent policy changes have impacted markets
• Exports ban depress farmer income

Items under export ban or restrictions

• Wheat, Rice, Sugar, Onion, Pulses

KEY BUDGET DEMANDS

• Increased R&D: Increase investment in R&D from 0.6% of GDP to at least 1%
• New seed varieties of pulses, wheat, oilseeds and cotton to address stagnant yields
• Tax rebates for private investment in R&D

Better fertilisers mix

• Reduce share of urea in fertliser subsidies
• Increase share of phosphorus and potassium (P&K)
• Bring biofertilisers, foliar spray under subsidy regime

Encourage exports

• Strengthen quality testing infra: long-term export policy
• Incentivise processed food export along with commodity export
• Dedicated fund for National Co-operative Exports Ltd

Bigger Price Stabilisation Fund

• Build buffer stock of tur, urad, onion etc
• Farmer support Increase in PM Kisan Yojana — from Rs 6000/annum to Rs 8000/annum

Incentives for Biofuels

• Tax incentives for biofuel investments with a sunset clause
• To increase demand for ethanol, relax 28% GST on hybrid cars
• Bring sugar ethanol rates on par with grain ethanol

Others

• Continue support for millets
• New technologies for farmers to reduce losses
• Budgetary allocation for National Mission on Oilseeds