Budget expectation of farm sector: Spotlight on agri research, fertiliser subsidy, climate fight in meeting with FM

Budget expectations: Farm organisations and experts met Finance Minister Nirmala Sitharaman for a pre-budget meet in New Delhi on June 21, pushing for increased investment in agricultural research, rationalisation of fertiliser subsidies, and infrastructure development to enhance the sector's resilience against climate change.

The two-and-a-half-hour meeting witnessed calls for raising the Indian Council of Agricultural Research (ICAR) budget from Rs 9,500 crore to Rs 20,000 crore.

Indian Chamber of Food and Agriculture (ICFA) Chairman MJ Khan highlighted the importance of substantial investment in agriculture research and development to foster sector growth and boost farmers' incomes.


Experts at the meeting advocated for the consolidation of all agriculture-related subsidies for transfer through Direct Benefit Transfer (DBT) and proposed a hike in the retail price of urea, unchanged since 2018. They also emphasized promoting bio-fertilisers and foliar fertilisers through subsidies.

Bharat Krishak Samaj Chairman Ajay Vir Jakhar suggested a separation of funds allocated for agricultural education and research.

He noted that "despite the economic returns on agricultural research being ten times higher than other investments, budget increases in the past two decades have lagged behind inflation rates."

Additional proposals included dismantling the MSP committee, commissioning a new agricultural policy for India, and altering the funding ratio for human resource development in centrally sponsored schemes from 60:40 to 90:10, with the central government covering 90 per cent of the cost for a period of five years.

Experts also recommended enhancing the budget allocation for the Agricultural and Processed Food Products Export Development Authority (APEDA) from Rs 80 crore to Rs 800 crore to boost farm exports. Establishing district export hubs and launching a National Goat and Sheep Mission were also suggested.

The meeting featured prominent figures such as former CACP chief and agricultural economist Ashok Gulati, senior agriculture journalist Harish Damodaran, and representatives from the National Institute of Agricultural Economics and Policy Research and the United Planters' Association of Southern India (UPASI).

As the government gears up for the 2024-25 budget, these recommendations underscore the critical need for reforms and heightened investment in the agricultural sector. The focus on addressing climate change challenges and achieving the goal of doubling farmers' income is particularly emphasized.

The Modi government is set to present the annual Budget for 2024-25 in July, with the insights from this consultation likely to play a significant role in shaping agricultural policies.