Budget 2024: Agriculture sector welcomes budget proposals
Stakeholders from agriculture and commodity sectors have welcomed the allocation of ₹1.52 lakh crore for agriculture and allied sectors in the Union Budget presented on Tuesday, and the Centre’s focus on climate resilience, productivity and innovation.
The Government’s focus on natural farming, digital public infrastructure and research and development in the agriculture sector have also come in for praise.
Welcoming the budgetary proposal to develop a climate finance taxonomy, Ranjit Barthakur, Founding Director, Balipara Foundation, said this one is sorely needed to drive systematic business and economic growth aligned to global climate goals. As India builds this taxonomy, it will be essential for the country to set science-based targets for sectors and align itself to the growing international recognition of the role of biodiversity in mitigating climate change.
Congratulating the Government for announcing ‘National Missions for Edible Oils’ focussing on oilseeds such as mustard, groundnut, sesame, soyabean, and sunflower, Ajay Jhunjhunwala, President of Solvent Extractors’ Association of India (SEA), said this initiative encompasses crucial aspects such as research for high-yielding varieties, the widespread adoption of modern farming techniques, establishment of market linkages, procurement, value addition, and crop insurance. “We trust this important Mission would be adequately funded to ensure game changing results in reducing import dependence in coming years,” he said.
Terming Union Budget a game changer for agriculture, Amit Patjoshi, CEO of Palladium India, said the comprehensive focus on productivity and resilience in agriculture addresses many of the long-standing challenges faced by farmers. By introducing one crore farmers to natural farming, not only will the budget promote environmentally friendly practices, but it will also help reduce input costs and increase profitability for farmers.
Bishwadeep Ghose, Country Head, India, Water for People India, said: “We commend the government’s budget for its strong focus on water management, emphasising water supply, sewage treatment, and solid waste management projects for 100 large cities. The collaboration with state governments and development banks to create bankable projects is a significant step towards improving urban water infrastructure. The innovative use of treated water for irrigation and tank filling in nearby areas is a promising approach to water recovery and storage.”
Girishkumar Kadam, Senior Vice President and Group Head – Corporate Ratings, ICRA Ltd, said the Government has budgeted ₹1.19 lakh crore for urea subsidy and ₹45,000 crore for nutrient-based subsidy, taking the total budgetary allocation to ₹1.64 lakh crore. This allocation is lower than last fiscal’s revised estimates of ₹1.89 lakh crore. As per ICRA expectations, the total subsidy is likely to be sufficient at current prices.
Pushan Sharma, Director-Research, CRISIL Market Intelligence and Analytics, said the agriculture budget this year focuses on a structural measure through 4 Cs- climate, credit, cutting-edge-technology and critical infrastructure. One can see a clear focus on long-term measures to enhance productivity of crops and combat climate change through high-yeilding and climate-resilient variety of seeds. nt.
Amit Vatsyayan, Leader GPS-Agriculture, Livelihood, Social and Skills, EY India, said the government efforts reflect a comprehensive strategy to transform agriculture, focusing on climate-resilient practices, boosting productivity, enhancing efficiency. The initiatives aim to equip farmers with the tools needed for sustainable growth in changing climates.
Shashi Kant Singh, Partner, Agriculture, PwC India, said the Union Budget has laid down a clear path for ensuring sustainable growth of the agriculture sector. Allocation in excess of ₹1.5 lakh crore, coupled with a clear focus on productivity and resilience, provides a much-needed thrust to the sector. Significant emphasis has been given to climate and productivity-responsive research and use of technology.
Rahul Guha, Director, CRISIL Ratings, said the shrimp processing sector will benefit from two specific announcements. First, the government support for marketing and financing shrimp farming through Nabard will improve the supply chain, reduce time to exports and, hence, lower the cost of production for processors and farmers. Second, reduction in import duties on certain brood stock to 5 per cent will reduce costs for the farmers and, in turn, processors.
Satyajit Hange, Co-Founder Two Brothers Organic Farms, said: . “As a part of the organic farming community, I believe that the Government’s vision to initiate 1 crore farmers into natural farming in the next two years is commendable and could prove effective in making organic farming go mainstream. However, its success would depend largely on timely access to financial aid under schemes like Pradhan Mantri Kisan Samman Nidhi and Paramparagat Krishi Vikas Yojana along with support for branding and certification.”
Maninder Singh Nayyar, CEO and Founder of CEF Group, said the comprehensive review of the agricultural research setup, aimed at increasing productivity and developing climate-resilient varieties, is a crucial initiative. This approach, combined with the expertise of domain specialists, will ensure that Indian farmers have access to the latest innovations and technologies.
AP Sinha, Director of Farlense Group, said the establishment of Digital Public Infrastructure (DPI) linked to farmers will further enhance the ability of banks to judge the creditworthiness of farmers and thus promote further inclusion in the formal credit system. Introduction of 109 high-yielding and climate-resilient crop varieties along with research centres aligned with efforts to ensure food security, and the creation of 10,000 bio-input resource centres to support sustainable farming practices.
T Manish, Research Analyst at SAMCO Securities, said that the Union Finance Minister, Nirmala Sitharaman, announced research-based setups for raising productivity and developing climate-resistant crops. On providing new 109 climate resistant crops in 32 categories to be developed and released, he said companies like Kaveri Seeds, Dhanuka Agritech would be the beneficiaries.
Aman Mittal, Vice President of Lovely Professional University, said the development of large vegetable production and supply clusters closer to consumption centres and provision of financial support for shrimp breeding through NABARD will strengthen the supply chain and boost exports.
Sanjiv Kanwar, Managing Director of Yara South Asia, said the attention given to pulses and oilseeds, along with the development of large-scale clusters near FPO centres and consumption centres, directly addresses the need for a robust and efficient supply chain. These large-scale clusters around consumption centres will also help in efficiently reducing the carbon footprint of the agricultural supply chain.
KC Ravi, Chief Sustainability Officer, Syngenta India Pvt Ltd and Chairman Crop Life India, said the Union Budget is a refreshingly no-frill budget that addresses the present realities and challenges of the agriculture sector. Collaborative research of public institutions with the private sector for development of newer climate resilient varieties and farm practices for the various agro-climatic zones in the country would help farmers navigate and manage the emerging challenges in coming years.
Bodhisattwa Sanghapriya, Founder and CEO, IG Drones, said: “We applaud the Union Budget’s focus on innovation, research and development, and next-generation reforms, aligning with the Government’s nine key priorities. This emphasis will accelerate the growth of the drone sector and enhance advanced technologies like AI and IoT.”
Ajai Rana, Business Head, Asia Pacific – RiceTec, said the Union Government’s intent on transforming agricultural research with a focus on increasing productivity and development of climate-resilient varieties is commendable. The proposed introduction of 109 climate resistant crops in 32 categories will pave the way for further research and advancements in climate technologies. Large-scale adoption of next-generation technologies will help increase productivity with lesser resources, reducing the demand for increasing farmland and pressure on the environment.
Chirag Sharma, CEO, Drone Destination, said: “At Drone Destination, we continue to be a lead player in the Namo Drone Didi programme to train and empower women drone entrepreneurs from self-help groups in rural areas. We look forward to carrying our extensive drone mapping experience from schemes like SVAMITVA to support creation of digital public infra in agriculture.”
Raju Kapoor, Director, Industry and Public Affairs, FMC India, said the introduction of 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops further showcases the Government’s dedication to providing farmers with the support they need to thrive in the changing environment. Similar efforts are needed to make the expedited availability of modern agricultural inputs to enhance productivity.
Ashish Agarwal, Co-Founder and CTO, Weather Risk Management Services (WRMS), said the Budget 2024-2025 marks a significant milestone towards a thriving and innovative agritech future with a strong emphasis on climate resilience and adaptation. The budget underscores the importance of collaboration among the government, private sector, and research institutions to drive innovation and scalable solutions.
Gayatri Nair Lobo, CEO, ATE Chandra Foundation, said it is extremely heartening to see the Government’s commitment towards regenerative agriculture and natural farming. The Finance Minister’s move to initiate 1 crore farmers into this form of farming and offering support to them by removing the bottlenecks related to branding, certification and availability of inputs via 10,000 bioresource centres would be extremely beneficial to farmers and all Indians.
Soumyak Biswas, Partner, Food and Agribusiness, Management Consulting, BDO India, said the budget has emphasized structural changes in unlocking the value chain in the agriculture and allied areas. Thrust on research and development in collaboration with industry in PPP mode can significantly enhance productivity and bring much-needed innovation to the sector. Secondly, a marked difference in this budget is the clear focus on sustainable production driven by the promotion of natural farming in the sector.
Kishan Karunakaran, CEO of Buyofuel, said this Union Budget once again underscores the commitment to achieving Vikisit Bharat 2047, with energy transition being a top priority. The interim budget’s financial assistance has significantly benefited the biofuel industry by simplifying the complex biofuel supply chain and generating increased interest in the sector.
Vimal Kumar Alawadi, Managing Director, Best Agrolife Ltd, said plans to release 109 new high-yielding, climate-resilient seeds for 32 field/horticulture crops are also commendable, as is the move to promote increased production via large-scale vegetable production clusters as well as the use of treated water for irrigation.
Rajesh Aggarwal, Managing Director, Insecticides (India) Ltd, said: “At IIL, we are particularly encouraged by the budget’s emphasis on higher minimum support price for major crops, ensuring economic stability for farmers and allowing them to invest in better farming practices and technologies. The focus on enhancing the supply chain infrastructure, including storage and transportation, will minimize post-harvest losses and improve market access.
Atul Garg, Managing Director, GRM Overseas Ltd, said the Government’s commitment to capital expenditure and support for irrigation projects further reinforces its dedication to a robust agricultural infrastructure. These initiatives reflect a strong vision for the future, ensuring Indian farmers are well-equipped to face challenges and seize new opportunities. This budget paves the way for a more resilient and prosperous agricultural sector.
Saroj Kumar Mahapatra, Executive Director of PRADAN, said this budget marks a significant step forward in agricultural development. By prioritizing agricultural research focused on climate-resilient crop varieties, it aims to bolster future food security and mitigate inflation risks.
Rohit Nagdewani, Founder, Fresh From Farm, said: “I believe that the focus on raising productivity and developing climate-resilient varieties will significantly address the challenges faced by our sector. The inclusion of funding in challenge mode, extended to both the private sector and domain experts, ensures that innovative solutions will be developed and implemented effectively. ”
Amith Agarwal, Co-Founder and CEO, StarAgri, said: “As an agri-entrepreneur, I appreciate the emphasis on releasing high-yielding and climate-resilient crop varieties for farmers. This initiative will enable farmers to cultivate crops naturally, reducing the reliance on large amounts of pesticides. Furthermore, the focus on modern agricultural technologies will equip farmers with new methods, thereby enhancing their contribution to the GDP.”
Ankur Aggarwal, Managing Director of Crystal Crop Protection Ltd, said the comprehensive review of agricultural research, led by domain experts, will ensure the effectiveness and relevance of developing climate-resilient seeds. Additionally, the promotion of digital public infrastructure for agriculture in partnership with states is a forward-thinking initiative.
Archana Sinha, CEO and Co-Founder, Nourishing Schools Foundation, said studies indicate that elevated levels of CO2 result in massive deterioration of the nutritional profile of staple crops like rice, wheat, and barley – between 7 per cent and 15 per cent, thereby urging the need to find the balance between climate resilience and upping nutritional profiles of the crops to truly combat food insecurity in the country.
Sat Kumar Tomer, Founder and CEO, Satyukt Analytics, said the implementation of Digital Public Infrastructure (DPI) within three years will ensure that farmers and their lands are comprehensively covered, leading to better resource management. Additionally, the operationalisation of the Anusandhan National Research Fund for basic research and prototype development, along with mechanisms for private sector-driven innovation, marks a significant advancement in agricultural research and development.
Simon Wiebusch, President of Bayer South Asia and Vice Chairman, MD and CEO of Bayer CropScience Ltd, said despite being the second largest producer of fruits and vegetables, India accounts for merely 2 per cent of global horticulture trade. The FM’s announcement to set up large scale clusters for vegetable production and utilization of FPOs and start-ups to promote vegetable supply chains will not only help control food prices but set the stage for making India a major horticulture exporter.
Chirag Jain, Partner, Grant Thornton Bharat, said the proposed budget on agriculture with a focus on ‘productivity and climate resilience’ is right on the spot for the current requirements of the country. Focus on infrastructure like irradiation units, quality labs will help in infrastructure availability inter-alia resulting in reduced post-harvest losses and improving quality assurance for the consumers. Vegetable clusters will help in easing out the food inflation pressures.
Preet Sandhuu, Co-founder and Chairman of AVPL International, said, “By investing in human capital, we are increasing the productivity of India’s workforce, which is essential for sustaining long-term economic expansion. The partnership between public and private entities is critical in addressing the skills gap and ensuring that India’s demographic dividend is leveraged effectively,” Sandhuu said.
Atul Chaturvedi, Executive Chairman, Shree Renuka Sugars Ltd, said the 2024 Union Budget is commendable for its strong focus on agriculture and economic growth. It highlights the government’s commitment to reshaping Indian agriculture and boosting productivity. The allocation of ₹1.52 lakh crore to agriculture, along with new initiatives in research as well as roping in private sector is a welcome sign and will greatly benefit the sector.
Harsh Vardhan Bhagchandka, President IPL Biologicals, said the PM’s Vision-2047 for a Viksit Bharat cannot be achieved without the focus on agriculture. “We are happy to note that the Finance Minister listed nine government priorities, with agriculture productivity being on the top. The allocation of ₹1 lakh crore for private sector innovative R&D and commercialization support shall help in bolstering an environment of innovation and progress,” Bhagchandka said.
SK Chaudhary, Founder Director, Safex Chemicals Ltd, said the Union Budget is quite progressive for the agriculture sector. The abolition of the Angel Tax is a visionary step that will significantly empower startups, catalyzing innovation and growth within the agricultural sector. This, along with the comprehensive review of agricultural research, announces a new era of productivity and climate resilience.
Tarun Sawhney, Vice Chairman and Managing Director, TEIL, said: “We are optimistic that the Government’s allocation of ₹1.52 lakh crore for research and development in agriculture and allied sectors, along with the push towards natural farming and Digital Public Infrastructure with a digital crop survey, will enhance productivity and significantly boost farmers’ incomes, particularly for sugarcane farmers who face challenges like uneven rainfall and red rot disease in certain pockets of the country. Natural farming will also help the compressed bio gas sector to enhance the financial attractiveness due to assured disposal of the liquid fertilizer.”
Sanjay Borkar, CEO and Co Founder, FarmERP, said the budget reflects a transformative vision for the agritech sector, prioritizing productivity and resilience in agriculture. The dedicated funds for agricultural research, particularly for developing climate-resilient crop varieties, showcase the government’s commitment to innovation. Support for agribusiness startups, especially in the vegetable supply chain, underscores a strategic focus on critical growth areas. Establishing 100 food quality and safety inspection labs marks a significant step towards ensuring the highest food safety standards.
Rajesh Srivastava, Chairman, Prowess Advisors, said, “The initiation of one crore farmers into natural farming supported by certification and branding over the next 2 years is a welcome move. Introduction of a National Cooperation Policy to promote the overall development of the cooperative sector will also empower the agriculture industry as a whole. Further, the government’s initiative to digitize land records and registrations is expected to improve India’s GDP by about 1.5 per cent and will also significantly improve the country’s ease of doing business ranking.”
Rohit Bahadur, MD & CEO of Prowess Advisors, said, “This Budget clearly aims to address food safety, self-sufficiency and quality. Considerable focus has been put in to mitigate climate shocks, and inflationary pressures through core research and supply chain fillips. Good to see impetus on seafood exports (especially shrimps) through direct and fiscal incentives.”
Cut in precious metals duty
Hareesh V, Head of Commodities at Geojit Financial Services, said the customs duty cut on gold and silver may lead to a decline in domestic prices and perhaps lift demand. The existing duty on gold and silver is 15 per cent, which comprises 10 per cent of basic custom duty and 5 per cent as Agricultural Infrastructure Development cess.
Annargha Uuttiya Chowdhuury, Director, Anjali Jewellers Pvt Ltd, said the reduction in customs duty on gold and silver is a huge boost to the industry resonating with the Aatmannirbhar and Make in India agenda of the government. The reduction in import duty will also give customers a major confidence in purchasing gold.
Suvankar Sen, MD & CEO, Senco Gold Ltd, said the move to cut import duty on gold and silver will boost to consumer demand. This decision will allow the middle and upper middle-class consumers to buy jewellery that was constrained due to high gold price.
“The formal sector will grow due to such action and enable the organised sector to grow. We expect an increase of sales of 10-12 per cent due to the 9 per cent reduction in duties in prices in gold and silver,” he said.