Upcoming Union Budget 2024: What's in store for farmers and agriculture?

Finance Minister Nirmala Sitharaman recently held a meeting with agricultural organizations and economists to discuss various suggestions for enhancing farmers' incomes. During the meeting, Sitharaman emphasized that empowering farmers and ensuring their welfare is crucial for the nation's progress. The meeting also included a demand to increase the financial assistance provided to farmers by ₹6,000.

Suggestions on Urea Subsidy

In the budget, there was a proposal to extend government scheme benefits to tenant farmers. According to agricultural experts, the subsidy on urea is relatively high, necessitating a reduction in potash subsidies. This could potentially increase the consumption of potash and other fertilizers. Experts suggested increasing the price of urea and reducing its subsidy.

Enhancing Farmers' Income and Credit Input Benefits

Agricultural economists proposed the establishment of a GST Council-like system to boost farmers' incomes, allowing them to benefit from GST credit input. Additionally, the 2024-25 budget should focus on promoting the manufacturing sector and generating employment.

Central Government Increases MSP for 14 Crops

On June 19, the Union Cabinet made a significant decision for the welfare of farmers. Union Minister Ashwini Vaishnaw announced that the Cabinet approved an increase in the Minimum Support Price (MSP) for 14 crops coinciding with the start of the Kharif season. The MSP for paddy has been increased by ₹117 to ₹2,300 per quintal, with the highest increase of ₹983 per quintal for Nigerseed, followed by an increase of ₹632 per quintal for tur (arhar). The government raised the MSP for paddy by 5.35% to ₹2,300 per quintal for the 2024-25 Kharif marketing season.

Expectations from the Upcoming Agricultural Budget

Agricultural experts suggested setting a minimum support price (MSP) for crops, implementing a new agricultural policy for India, and increasing the financing ratio for human resource development in centrally-sponsored schemes.
M. J. Khan, Chairman of the Indian Food and Agriculture Chamber (ICFA), emphasized the need for large-scale investments in agricultural research and development to increase farmers' incomes.
Experts recommended increasing the budget to promote exports, establish centers, and launch a national goat and sheep mission.
The government is set to present the annual budget for the fiscal year 2024-25 next month.