Bhubaneswar: The Economic Survey 2024-25 tabled in Parliament Friday categorically states that the agriculture has emerged as one among the key growth drivers during this fiscal year 2025.
The Survey has been very emphatic that the high growth in agriculture sector has been responsible for the country achieving a 6.4% GDP growth in the fiscal year 2024-25.
Moreover, the Survey has measured how the policies of Narendra Modi govt have boosted the agriculture growth in the country. The survey added that the Gross Value Addition (GVA) in Agriculture sector has touched nearly 6 lakh cr in 2024-25.
As per the Survey analysis, the agriculture GVA has sustained a higher trajectory since 2021. (see the image below)
Amidst the above par performance of the farm sector in the country, how FM Nirmala Sitharaman has awarded the farmers and invested in the sector?
SITHARAMAN’S FARM PUSH
The Budget has announced a new scheme to give a push to the growing farm sector. The scheme named PM Dhan-Dhanyaa Krishi Yojana.
This is a scheme aimed to develop farming sectors in poor farming districts across the country. The FM said this Aspirational Districts Programme in the farm sector.
As per the scheme, 100 districts across the country with low productivity, moderate crop intensity and below-average credit parameters will first see implementation of the scheme.
The FM stated that this scheme will benefit 1.7 cr farmers across the country.
WHAT PM-DDKY WILL DO?
As per the Budget document, it aims to:
- Enhance agricultural productivity
- Adopt crop diversification
- Adopt sustainable agriculture practices
- Augment post-harvest storage at the panchayat and block level (Eco Survey 2025 blamed the lack of post harvest storage for the rise in tomato and onion prices, along with the weather disruptions.)
- Improve irrigation facilities
- Facilitate availability of long-term and short-term credit.
Along with this, the FM has enhanced the loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh for loans taken through the Kisan Credit Card.
As per the budget this will facilitate short term loans for 7.7 crore farmers, fishermen, and dairy farmers.
BUDGET FOCUS ON DIVERSIFICATION OF CROPS
For the farming sector, the Budget has delivered the mantra of prompting diversification, boosting productivity/yield to increase the farmer income and achieve food grain sufficiency.
FOCUS PULSE, EDIBLE OIL
Friday, the Economic Survey tabled in Parliament has very categorically mentioned that tur dal and edible oil price control is beyond government’s ways and means.
Analysing the cause, the Survey noted that tur dal production is far below consumption. So too, has been the case with edible oils. Therefore, it said, Efforts need to be made to boost its productivity and production.
Saturday, the Budget has comeout with programmes to implement what Economic survey has identified.
FM in her Budget speech announced the following.
- Our Government is implementing the National Mission for Edible Oilseed for achieving atmanirbhrata in edible oils.
- Our farmers have the capability to grow enough for our needs and more.
- Ten years ago, we made concerted efforts and succeeded in achieving near self-sufficiency in pulses.
- Farmers responded to the need by increasing the cultivated area by 50 per cent and Government arranged for procurement and emunerative prices.
- Since then, with rising incomes and better affordability, our consumption of pulses has increased significantly.
- The FM’s statement shows Modi govt has increased the pulses production, but consumption has grown faster than growth in production.
In the above backdrop, the FM has announced in the Budget 2025, a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor.
The FM assured that central procurement agencies like NAFED and NCCF will be ready to procure these 3 pulses, as much as offered during the next 4 years from farmers who register with these agencies and enter into agreements.
COMING SOON: A VEGEE SCHEME
Since the food prices, especially vegetable, dals and edible oils, have made the inflation stubborn for last 2-years, the FM has announced in her budget that as with rising income levels, the consumption of vegetables, fruits and shree-anna is increasing significantly, appropriate institutional mechanisms for implementation and participation of farmer producer organizations and cooperatives will be set up.
The FM has implemented the Eco-Survey 2025 suggestions that disruption in supply chain despite higher production then consumption has thrown the spanner in controlling prices of vegetables, especially Onion and Tomato.
MAKHANA BOARD IN BIHAR
With Bihar elections set for this year, the Budget has offered some special gifts.
Among the one, establishment of a Makhana Board in the state to improve its production, processing, value addition, and marketing.
The budget announced that the people engaged in these activities will be organized into FPOs. The Board will provide handholding and training support to makhana farmers and will also work to ensure they receive the benefits of all relevant Government schemes, it added.
‘SEEDING’ HIGH GROWTH
FM Nirmala Sitharaman in her budget speech has also implemented Eco-Survey recommendation of increased production of agri crops via HYV varieties.
Today, she announced launch of a National Mission on High Yielding Seeds that is aimed at
- Strengthening the research ecosystem
- Targeted development and propagation of seeds with high yield, pest resistance and climate resilience
The FM said the government has made commercial availability of more than 100 seed varieties since July 2024.
CASH TOUCH
FM Sitharaman announced a ‘Mission for Cotton Productivity’.
She announced this 5-year mission will facilitate
- Improvements in productivity
- Sustainability of cotton farming,
- Promote extra-long staple cotton varieties.
- It will be aligned with integrated 5F vision for the textile sector
- Which will help in increasing farmer incomes engaged in this cash crop farming
- Ensure teady supply of quality cotton for rejuvenating India’s traditional textile sector.
ASSAM ELECTION YEAR
With elections looming over Assam this year, for Atmanirbharta in urea production, FM announced the gift of setting up of a plant with annual capacity of 12.7 lakh metric tons will be set up at Namrup, Assam.
FARMERS GAIN/LOSS
GAINS:
- Rashtriya Krishi Vikas Yojana outlay up by Rs 447 cr to Rs 8500cr
- Krishionnati Yojana outlay up by 553 cr to Rs 8000cr
- PM-KISAN allocation up by Rs 3500 cr to touch Rs 63,500cr
- PM-AASHA allocation went up marginally to touch Rs 6,941cr
- New Scheme Mission for Pulses got an outlay of Rs 1000cr
- Similarly, Mission for Vegetables and Fruits will also see an allocation of Rs 500cr
- Cotton Tec mission outlay at 500cr
- Rs 100cr for newly announced National Mission on Hybrid Seeds
- Similarly, Rs 100cr set up for newly announced Makhana Board in Bihar
- Nutrient based subsidy raised by Rs 4K cr to Rs 49000cr
LOSSES
- Crop Insurance scheme outlay cut down to Rs 12,242 cr from Rs 15,864cr in 2024-25 RE
- The allocation has been lower than the BE of 2024-25,which was at Rs 14,600cr
- Urea subsidy marginally down
- PM SINCHAI Yojana allocation up by Rs 10cr
- Watershed Development programme outlay up by Rs 4cr
