Budget 2024 Expectations: Agricultural Leaders Call for Increased Investment and Reforms

As the nation looks forward to the upcoming budget, key figures in the agricultural sector are urging the government to prioritize substantial investments and sweeping reforms to enhance rural infrastructure and promote sustainable growth. With a focus on strengthening road networks, irrigation systems, storage facilities, and embracing advanced technologies, these leaders emphasize the importance of a collaborative approach between the government and private sector to drive productivity, reduce post-harvest losses, and ensure climate resilience in India's agriculture.

Rajesh Aggarwal, Managing Director of Insecticides (India) Ltd, emphasized the critical need for enhanced rural infrastructure. "In anticipation of the upcoming budget, the agricultural sector eagerly awaits increased investment in rural infrastructure and comprehensive reforms. Strengthening road networks, irrigation facilities, and storage infrastructure is pivotal to minimizing post-harvest losses and enhancing market access for farmers. This initiative not only intensifies productivity but also generates employment, catalyzing rural economies," Aggarwal stated.

He highlighted the importance of collaborative efforts between the government and the private sector to integrate advanced technologies and efficient farming practices. "Enhanced supply chain management, supported by public-private partnerships, ensures streamlined operations and accessibility to quality agricultural inputs, including crop protection products like insecticides and biologicals," he added. Aggarwal also stressed the need for robust strategies for pest management and sustainable water management, advocating for funding climate-smart agriculture innovations like solar-powered irrigation and rainwater harvesting.

“Moreover, boosting the agricultural supply chain through expanded storage capacities and improved transportation networks is essential to reducing wastage and enhancing farmers' incomes. By focusing on these priorities, policymakers can nurture a resilient agricultural ecosystem, driving sustainable growth and prosperity across rural India," he added.

Susheel Kumar, Managing Director and Country Head, Syngenta India

“Indian agriculture which has grown at a healthy rate in the last couple of decades, now faces increasing challenges from erratic weather conditions and climate change. Besides higher allocation for infrastructure and irrigation the budget for 2024-25 should set the pathway for addressing the issue of promoting collaborative research of public institutions with private sector for development of newer climate resilient varieties and farm practices for the various agro-climatic zones in the country so that farmers can navigate through emerging challenges in coming years. Setting up a sustained mechanism to provide intellectual property protection for technology developers and investors would help farmers getting best technologies and varieties for boosting yield of several crops especially oilseeds, cotton and corn. Incentives schemes such production linked incentives (PLI) for agro chemical and allied sector, fiscal incentives for investment in the agricultural value chain for reducing the pre and post-harvest losses and support for introduction of technologies – digital soil and crop yield mapping, expanding the scope of usage of drones and promotion of hybrid seeds for paddy and other crops should be focus area for the budget. Income tax incentives like 200 percent weighted deduction would promote R&D in agriculture sector. The rationalization of GST rates on agrochemicals at par with other agri inputs would promote usage of quality crop protection products by farmers.”​

Dr. Tarun Shridhar, Former Secretary, Ministry of Fisheries, Animal Husbandry, and Dairying, GoI (Former Member, Central Administrative Tribunal)

“Could the forthcoming budget induce a fresh lease of life, a healthier one, to the agriculture sector? Should it not look beyond the run-of-the-mill programmes and interventions such as subsidies on farming methods, crops, seeds, fertiliser, sundry inputs, MSP et.al.?

In my view, the forthcoming budget should, with a fanfare, announce a flagship programme Smart Village and Smart Farmer. Today we only have a Smart City. Why should rural infrastructure and facilities not be at par, if not better, than the urban? The woes of the agriculture sector are, to a great extent, the outcome of poor infrastructure. Let the budget declare a vision and policy encouraging reverse migration: urban to rural. Make the village, the farming and the farmer SMART. How? Approach agriculture as more than a basic food production system. Incentivise it as an enterprise. Let an educated urban boy and girl pronounce that I wish to be a farmer.

Income support, yes. Subsidies to offset the high cost of farming, yes. But let these not be the substitutes of investment. Invest as much in infrastructure, value addition, R&D, Digitalisation; basically in every activity that gives greater productivity and hence better monetary returns to the farmer. This wouldn’t be in any conflict with the government’s welfare and income support to the farmer. Let the investment be evaluated on the threshold of financial return. A rupee spent should return more than a rupee, and efficacy of this conversion should be measured by how much more. Treat agriculture as business and encourage financial returns on business principles. Let the focus shift from production to farmer, not merely in the idiom of welfare, but the measure of prosperity.

Finally, the budget must declare and demonstrate a strong commitment to reduce, if not eliminate, food loss and wastage. It is indeed sinful that, when a vast multitude grapples with hunger and malnutrition, one third of the food we produce is lost or wasted. This loss is not only economic but a loss of humanity too.”

Dr RR Burman, ADG ICAR

"As we strive to transform India into a developed nation and a leading agri-exporter, the upcoming budget is pivotal in setting the course for our agricultural future. In a changing climate, increasing investment in agricultural research and development (R&D) is crucial for developing resilient crop varieties and advanced farming techniques. This is not only vital for our internal food security but also positions India to become the global 'annadata'—the provider of food to the world. India should increase its investment in research and extension from 0.61% of its AgGDP to 3% by 2030 to achieve the goal of 2047. Massive planning and investment in agricultural infrastructure are needed now more than ever. We must focus on improving irrigation systems, enhancing market access, and strengthening cold storage facilities and digital marketing platforms. These efforts will connect farmers directly to markets, reducing intermediary roles and boosting their incomes. Empowering our farmers through education and training will enhance their knowledge of modern techniques, technology adoption, and business management, allowing them to make informed decisions. Encouraging agri-entrepreneurship will drive innovation through support for startups focusing on precision farming, agro-processing, and supply chain logistics. So, Agricultural Extension sector is also required investment form present 0.11% of Ag GDP to 5% in next 5 year. It is studied that, every rupee spent on research pays back Rs 13.85 and on extension, Rs 7.40. By concentrating on these areas in this budget, India can start towards significantly elevate its agricultural productivity and competitiveness on the global stage.”

Dr Rajvir Rathi, Vice Chairman, Federation of Seed Industry of India and Head of Agricultural Policy & Stakeholder Affairs at Bayer Crop Science has articulated his primary recommendations for the Indian government's agricultural policies. Rathi underlines the importance of implementing a One Nation, One Policy framework to streamline and harmonize the regulatory landscape. He also emphasized the necessity for supportive policies, encompassing both regulatory measures and infrastructure development, to enhance the seed industry’s market presence.

He also called for national recognition of research and development-driven seed companies. Mr. Rathi believes that these initiatives would bolster the agricultural sector and benefit the farming community, thereby contributing substantially to the national GDP.

Echoing these sentiments, Maninder Singh Nayyar, CEO and Founder of CEF Group, underscored the importance of sustainability and urban farming as drivers of economic progress. "As we approach Budget 2024, it's essential to prioritize sustainable growth with significant investments in infrastructure and structural reforms. At CEF Group, we see sustainability and urban farming as key drivers of economic progress," Nayyar commented.

Nayyar called for the budget to emphasize waste reduction and organic farming to build a resilient agricultural ecosystem. "Supporting renewable energy and green technologies will tackle environmental challenges and ensure rural prosperity. By fostering collaboration, Budget 2024 can lead to a sustainable future for Indian agriculture and uphold our duty to protect the environment for future generations," he concluded.

Ajai Rana, Chairman, Federation of Seed Industry of India

"Agriculture R&D demands significant investments and long-term commitment, involving multi-year, multi-environment evaluations requiring extensive resources. To encourage private-sector investments in R&D in agriculture, particularly, seeds, the industry seeks a conducive policy and regulatory environment. Establishing a mechanism to recognize R&D-focused seed companies based on certain qualifying criteria, through creation of a National Register is the foremost expectation from Budget 2024."

"Another key expectation is the reinstatement of the 200% income tax weighted deduction for R&D expenditure in the seed industry under Section 35(2AB) of the Income Tax Act, 1961, which was rolled back in recent years. This can be provided for the eligible companies listed in the above-mentioned national register of accredited research players that have a proven track record of bringing innovative solutions to the farmers and comply with rigorous quality standards and other statutory requirements."

Ricky Thaper – Treasurer, Poultry Federation of India

“The Poultry Industry, which employs millions of people and has been witnessing one of the fastest growth in the range of around 8 – 10% annually, is looking forward to sustained supply of feed, which has a share of around 60-65% in the cost of production. From the Union Budget (2024-25), the poultry industry expects measures boosting supplies of maize, a key ingredient in the poultry feed. The domestic prices of maize have been at elevated levels because of growing demand for maize from several other industries such as pharmaceutical, ethanol, food and beverages industry. While the government must initiate steps to increase production of maize in coming years, import liberalisation should be given prominence so that the cost of production of the poultry sector remains stable. As done a few years back for soybean meal, the government must allow import of genetically modified (GM) corn and soybean meal so that the poultry industry is assured of raw material supplies for the feed in a cost effective and sustainable manner.”

“The GM corn and soybean meal imports should be allowed with a fixed quota during off or non-harvesting season here so that it does not adversely impact the farmers’ price realisation. Reduction in import duties on these ingredients in the poultry feed should be announced soon. While the government has extended the Animal Husbandry Infrastructure Development Fund being implemented under Infrastructure Development Fund with an outlay of Rs.29,610 crore for another three years up to 2025-26, thrust on providing financial incentives to poultry feed plants and poultry meat processing units. The creation of cold storage infrastructure at the retail levels should be encouraged to harness the growth potential of the poultry sector. We need more sustainable, efficient, technology-enabled modern cold chain facilities to ensure that no protein value is diminished during the poultry birds’ journey from farm-to-fork. Support from refrigerated infrastructure creation in transportation of poultry birds should be provided enough attention in the budget so that the value-chain of the poultry industry remains sustainable and remunerative for the farmers.”

M Balakrishna - CEO, SDF India

"As we approach the upcoming Indian government budget for 2024-2025, the focus on agriculture remains pivotal. Agriculture, being the backbone of our economy, demands robust initiatives to ensure sustainable growth and prosperity for our farmers. Key areas of concern include enhancing irrigation infrastructure, promoting organic farming practices, farm mechanization, and integrating advanced technology to boost productivity.

In recent years, the sector has faced challenges such as fluctuating market prices, climate change impacts, and rural distress. Therefore, the budget must prioritize investments in rural infrastructure, particularly in irrigation systems and connectivity, access to credit facilities, and research and development in agricultural sciences. Additionally, schemes that encourage crop diversification, improve market linkages, and provide timely agricultural subsidies are crucial.

Which are vital for improving farm productivity. Initiatives that promote mechanization through subsidies or incentives for purchasing modern agricultural equipment will be crucial in accelerating farm mechanization across the country. This will not only support the modernization drive but also enhance the overall efficiency and profitability of farming operations.

Moreover, the budget should aim to bolster food security measures while promoting agri-business opportunities and strengthening farmer-producer organizations. Emphasizing sustainable agricultural practices and incentivizing water management initiatives will also be essential in the upcoming fiscal year. By aligning policies that foster innovation and sustainable practices in agriculture, the government can empower farmers and propel India towards achieving greater food security and agricultural prosperity."

Dr SN Jha, DDG Agricultural Engineering, ICAR

“Government should reduce GST on agricultural tractors, farm implements and machinery, post-harvest equipment, machinery and small capacity storage structures. It should promote grain dryers and preservation techniques to reduce post-harvest losses substantially. An institute in Agricultural Robotics and AI is required urgently to focus faster intrusion of robotics and AI in Indian Agriculture by developing capacities of our own faculty and students in this field.”

Dr RS Sodhi, President Indian Dairy Association and Former MD, AMUL

"In India, we need to increase productivity per animal. Cross-bred cows' average productivity is 8.5 liters per animal per day. For desi cows, the average productivity is 3.4 liters. Average buffalo productivity is 6 liters per day.

Our productivity is growing at the rate of 2.1 percent per annum. Consumption is growing at the rate of 5 to 5.5 percent per annum. Hence, it is clear that we must increase the productivity of each animal. We already have more than 300 million cattle and buffalo. We cannot afford more.

Need to reduce the cost of milk per liter

Consumers can't keep paying higher prices every year. There is an urgent need to reduce the cost of milk per liter. This shall make milk more affordable for the Indian masses.

On one side, we want the milk business to be more remunerative for the milk producers. On the other hand, we want to make milk affordable for consumers. This shall happen only with higher productivity.

Major issues of concern

We need a higher feed conversion ratio. That is possible with better breeding and better feeding practices. Coming to the better breeding side, more and more animals must be covered under AI. There is a need to achieve a higher conception ratio.

AI Interventions

More trained human resources is essential for efficient AI. Sex-sorted semen needs to be more affordable. In sex-sorted semen and embryo transfer, we need a better conception ratio. If farmers have better breeds of animals, we can reduce the inter-calving period, and achieve faster first calving.

In India, there are 23 per cent NECO (Never Even Conceived Once) animals. There are practices to treat infertility among cattle. 10 to 15 pc of the NECO animals can be brought in the fertile range. In this way, more milk can be produced.

Shortfall of Feed

Our dairy farmers face a shortfall of feed. There is a 36 pc shortfall of green fodder, an 11 pc shortfall of dry fodder and a 44 pc shortfall of concentrate. We need higher availability of crop roughage.

In India, we feed the animals whatever is left over after human consumption. Our model is low input and low output. Because of low productivity, a significant portion of our feed is only for maintaining the body. Rs 90 to Rs 100 is the feed cost to maintain the animal's body. Whatever feed is given above is converted to milk. With better feed, the animals shall yield more milk, and the cost of production shall be reduced. We need fewer animals and more milk per animal for a higher feed conversion ratio.”

Raju Kapoor, Director, Industry & Public Affairs, FMC India

"The agricultural sector which is the backbone of the Indian economy has been through a challenging year. With monsoon playing truant, agricultural growth has diminished from 4.7% last year to 1.4%, which further added to the rural distress. This budget presents a crucial opportunity to address these concerns and propel the sector towards a brighter future. The government must prioritize agriculture and rural India, focusing on making farmers more resilient while simultaneously mitigating food inflation that disproportionately affects society's underprivileged segments.”

“Firstly, the budget must acknowledge the stark reality of food inflation, aggravated by stock restrictions on essential commodities such as pulses, wheat, and rice. This disproportionately affects the most vulnerable sections of society, demanding immediate attention. Similarly, the import dependence on pulses and oilseeds, the government's commitment to providing free rations under the Annapurna Yojana, and climate change further necessitate a robust domestic production system supported by developing an innovation ecosystem.”

“The government should prioritize R&D investments aligned with national priorities, focusing on developing climate-resilient crop varieties, microbial products, and sustainable farming practices. To facilitate the widespread adoption of technology, the budget should also incentivize the private sector participation in building a robust agricultural innovation ecosystem. Tax incentives for R&D investments by the private sector can encourage the development and integration of cutting-edge technologies. Furthermore, GST on agricultural inputs, such as agrochemicals, should be brought under the GST Council's purview and potentially lowered to 12% maximum to ease the financial burden on farmers,” he added.

“The Kisan Samridhi Yojana should be strengthened to empower farmers with greater financial support and its utilization at farmers’ hands should be linked to the use of advanced agricultural inputs. Kisan Samruddhi coupons that could be used to purchase agricultural inputs would enhance productivity. This will ensure timely access to essential resources and subsequent financial support to the farmers. We expect that the budget should have adequate resources for capacity-building initiatives, and should incentivize the investments by private companies to train farmer groups, particularly women, creating awareness and adoption of modern growing practices.  Easy access to adequate and affordable credit will further empower farmers to be able to adopt these technologies and enhance their livelihoods.”

“Extending the PLI scheme for production and export of latest innovation crop protection chemicals in India will provide long term dividend to India. Similarly, aligned to the theme of making India the Global Drone Hub, expanding the PLI scheme for building the agri-drone component manufacturing ecosystem will go a long way. In a nutshell, we envisage that this budget is focused on agriculture, which will further lay the foundation for a strong, sustainable, and prosperous future for Indian farmers and the nation."

Sandeep Sabharwal, Group CEO, SLCM

“As we approach the Union Budget 2024, we eagerly anticipate a visionary and comprehensive approach that encircles the entire Agri value chain through infrastructural reforms. Skill development should be a key focus area to empower the agriculture sector enough for it to become a significant source of employment opportunities. To achieve this, the budget must prioritize education & training for the warehousing industry, enabling individuals to acquire skills and embrace new technologies. Encouraging private sector participation will facilitate the adoption of innovative solutions at the grassroots level. A key focus point should definitely be on strengthening technology integration to existing warehousing facilities to curb crop damage due to multiple churns. Then to bind these processes together cheaper credit should be made available to Agri-financial institutions so that farmers can get the credit on time and the whole process of farm-to-factory can be streamlined. With that being said the approach here needs to be holistic and not in silos as all these factors are highly interlinked and it might not be sustainable to develop one area while leaving the others behind.”

Soumyak Biswas, Partner, Food and Agribusiness, Management Consulting, BDO India

"As part of the tactical measures, the budget may look at improving productivity measures, bring down the overall cost of production so that they can remain competitive in the global markets and make decent returns.

Some of the short-term interventions which the Government may consider are listed below:

1. Subsidies for sustainable farming - The Budget may subsidize usage of foliar application fertilisers and bio-fertilisers to promote sustainable farming. Given the adverse impact of urea on soil health, reallocating the fertiliser subsidy to promote alternative inputs can address this issue effectively.
2. Boosting Agri Exports - Despite being among the global leaders in production of various agriculture and horticulture products, India ranks relatively lower when it comes to agri-exports. The Budget should allocate funds to expedite creation of agro-processing clusters and link them to global markets and ensure the ecosystem is in place ranging from production, farm gate logistics, processing, quality checks and outbound logistics and certifications.
3. Revamping Commodity Boards - Commodity Boards will need to reinvent their roles significantly. Allocation towards such Boards may increase with focus on identifying new initiatives which can be taken up on PPP models.
4. Rationalising Tax Rates - Tax rates may be rationalised specially on agri-chemicals (the rate may be lowered from 18%), for agro-equipments (GST rates for tractors may lowered from existing 12%) and seeds.
5. Driving Convergence in Social Sector Schemes - The Government may lay emphasis on driving convergence across several social sector schemes which essentially can address the issues plaguing the farming community.

In terms of strategic interventions, it is important the budget focus on laying the foundational pillars for creating a resilient and sustainable agriculture sector which is touted to emerge as the food bowl of the world. In this regard, some suggestions which may be worth mentioning:

1. Increased Allocation for R&D - Greater allocation towards R&D should be a welcome move which can be utilised for improving productivity of current crops, develop new variants, focus on crop/ animal health, drive innovations across product and supply chain
2. Technology Adoption and Infrastructure Development - Increased allocation to drive technology adoption, creation of back-end infrastructure and expediting rolling out the agriculture stack can be a game changer in the agriculture industry.
3. Off-Farm Rural Income and Livelihood Improvement - Continuing with the mission of driving ‘off-farm’’ rural incomes and livelihood improvement and conceptualising new ones such as National Goats and Sheep Mission can help millions of small and marginal farmers and give a boost to rural income and drive consumption."

Pradeep Palelli, Co-founder & CEO, Thanos Technologies

"As we anticipate the upcoming budget, we at Thanos Technologies see immense potential for synergy between the agriculture and technology sectors, particularly through drone applications. We expect the government to recognize this intersection and provide support that benefits both industries. From the agricultural perspective, we hope to see subsidies and training programs that make drone technology accessible and adaptable for farmers of all scales. This would empower farmers to harness cutting-edge technology to enhance productivity and sustainability.

On the technology front, we anticipate investments in R&D centers dedicated to developing drones specifically tailored for agricultural use in our diverse climatic conditions. Additionally, we expect a reduction in import duties on specialized components, potentially by 10-15%, to reduce costs and foster innovation.

A balanced approach would also include tax incentives for tech companies developing agricultural solutions, ensuring that the benefits reach the end-users, our farmers. A possible 5-year tax holiday for such investments could spur rapid adoption and innovation. By striking this balance, we can drive technological advancement while ensuring that our agricultural sector reaps the benefits, leading to increased productivity and sustainability."

Vimal Kumar, Managing Director, Best Agrolife Ltd

“As India prepares for the Union Budget 2024, it is imperative for the government to take decisive steps to support the agrochemical sector, given its vital role in ensuring food security and sustainable agriculture. Our heavy reliance on imports from China highlights the need for implementing Production-Linked Incentive (PLI) benefits to boost local production. Additionally, increasing import duties on domestically produced raw materials can further encourage this growth. Lowering GST rates from the current 18% to 5% will reduce costs for farmers, thereby improving their income and the overall farm economy. Providing incentives will encourage micro-entrepreneurs to promote modernization through initiatives such as 'Drone as a Service' and the use of advanced machinery. Furthermore, introducing robust measures to combat counterfeit and spurious materials will ensure the integrity and safety of agrochemicals in India.”

Deepak Bhardwaj, Co-Founder and Director, of IoTechWorld Avigation

“Under the Modi 3.0 government, the agritech industry is set for a transformative leap, with significant investments poised to revolutionize Indian agriculture. To support the deepening of drone penetration at the grassroots level, government subsidies will play a crucial role. Additionally, increased curbs on foreign-made drones and their parts will benefit Indian drone manufacturers under the Make in India initiative. Innovations in precision farming, data analytics, and smart irrigation systems will enhance productivity and sustainability. Leveraging AI and IoT, farmers can make data-driven decisions, optimize resource use, and reduce environmental impact. The ease of documentation and faster file processing and approvals under the Agriculture Infrastructure Fund (AIF) scheme are expected to further drive this transformation. These advancements will improve yield quality and quantity while empowering farmers with better market access and financial stability. The Modi government may introduce a Rs 750-crore Agri-SURE fund for agri-startups and accelerate the AIF and the Integrated Scheme for Agricultural Marketing. A robust agritech ecosystem will boost food security, rural development, and overall agricultural growth, positioning India as a global leader in sustainable farming practices.”

Kunal Gupta, Head-Dhuri Plant, KRBL

"The upcoming 2024 Budget presents an opportunity for significant support in the agriculture sector. Increased funding for research can deliver improved crop yields and foster innovation in cutting-edge technologies. This, along with flexible export policies and Minimum Support Prices (MSP), can open new markets for Indian farmers and boost exports. However, a balanced approach is needed. While promoting exports and controlling inflation are vital, overdependence on fertilizer subsidies requires a shift towards sustainable practices. Additionally, farmer education, infrastructure upgrades, support for small farmers, and climate change adaptation are crucial for building a truly resilient and prosperous agricultural sector in India."

Bodhisattwa Sanghapriya Founder & CEO IG Drones

“The Indian drone sector has witnessed rapid growth in recent years, and the upcoming Union Budget has raised expectations for policy measures and fiscal incentives to further boost this industry. In 2021, the government announced a subsidy of Rs 120 crore under the Production-Linked Incentive (PLI) scheme for drone manufacturers and their components. We anticipate an extension of this scheme to help the Indian drone sector compete globally. As India aims to become a global drone hub by 2030, the industry looks forward to initiatives that promote the adoption and development of drone technology. Additionally, a focus on training youth in drone technology is essential for generating employment and creating a highly skilled workforce. The use of drones for defense and security purposes is also expected to receive a significant boost from the government. We are hopeful that Budget 2024 will elevate India’s drone industry to new heights of innovation and growth. Furthermore, reports of Google planning to set up a drone manufacturing factory in a southern state have naturally raised domestic industry expectations.”

Sanjiv Kanwar, Managing Director- Yara South Asia, a Subsidiary of Yara International

“As we anticipate the Union Budget, our focus is on policies that will invigorate the agricultural sector, foster ease of doing business, and promote a more sustainable and resilient agricultural ecosystem. We expect initiatives that will enhance credit and insurance frameworks for farmers and introduce an agriculture accelerator fund to spur growth. Addressing India's growing population necessitates a strong emphasis on sustainable soil management practices, including regenerative agriculture, along with water-efficient technologies and streamlined crop nutrition regulations. Additionally, tax parity for fertilizers and micronutrients, coupled with direct benefit transfers, will empower farmers to improve both the quantity and quality of their produce while minimizing environmental impact. This, in turn, will strengthen India's position in the global market. We are committed to working with the government and industry stakeholders to streamline regulations and promote a robust agricultural economy that empowers farmers, ensures ease of doing business, and prioritizes long-term sustainability.”

SK Chaudhary, Founder Director, Safex Chemicals Ltd.

“Given the increasing threat to crops because of adverse weather conditions arising from climate change, one looks forward to a robust rise in the R&D outlays so that both private and government institutes are motivated to develop climate-resistant crop varieties. The crop rotation system should also be incentivised, whereby more farmers are encouraged to adopt this strategy. Training and awareness programmes can be launched so the farming community realises the importance of rotating crops, which can help in conserving the water table, enhancing soil fertility and minimising erosion. Moreover, crop rotation will be useful in raising the overall per-acre productivity of farmland.

The GST rate of 18% on plant protection chemicals must also be lowered to 12% at the least, although a minimal rate of 5% would be more beneficial for the agri sector and consumers at large as it will reduce cost to grow crops.

Since climate change challenges are only growing worse by the day, we believe the Budget should look at across-the-board measures that will help in combatting the menace on every front. Therefore, the Finance Minister should focus on steps that promote climate-resilient farming practices and crop rotation to improve overall agri yields. Besides diversifying the income source of farmers, it will help the economy at large through the additional revenue generated.”

Ram Kaundinya, Advisor, Federation of Seed Industry of India (FSII)

Increasing the budget threefold for drip irrigation, sprinklers, and hose reel systems is crucial. Programs like free power and water that harm the environment should be phased out. Farmers who adopt water-conserving practices, such as Direct Seeded Rice and growing less water-intensive crops, need incentivization for sustainable water use through direct benefit transfers.

A Bhavantar program for selected priority crops will encourage farmers to go for them without anxiety about low prices. Implementing these points with a fresh, mission-driven approach can significantly enhance the competitiveness and profitability of Indian agriculture. The new government must embrace creativity and urgency to address these pressing needs, laying the foundation for a prosperous and sustainable future for agriculture.

Agricultural Subsidies

Agricultural subsidies should be redirected to promote sustainable practices including crop diversification based on agro-ecological zones, water and soil conservation programs and the cultivation of climate-resilient crop varieties. Introducing Carbon Credits and Green Credits systems through digital platforms for easy access can incentivize farmers to adopt sustainable practices profitably.

Building capacity of governance, compliance, commercial market dealing skills and primary processing facilities among Farmer Producer Organizations (FPOs) through a national program will strengthen their role in agricultural development and farmers prosperity.  Special lending guidelines by RBI for FPOs is essential. Encouraging market-aligned crop production requires multi-stakeholder dialogue with end-user industries, private sector, farmers and policy guidance from an inter-ministerial committee. Providing end-to-end solutions for key crops will boost farmers’ profitability.

Enhancing Digital Infrastructure

Enhancing digital infrastructure is crucial for operational efficiency, reducing drudgery, and enabling digital business operations in agriculture. Standardizing parameters of crop lots and processes is the key. Financial services like credit and insurance, delivered digitally, benefit farmers. Digital management of agricultural output is vital for profitability, inflation control, and minimizing post-harvest losses. Establishing digitally enabled micro-warehouses and supporting public-private partnerships for digital products and services will be beneficial.

A special team may engage with all stakeholders and develop a mutually acceptable model for farm market liberalization. This team addresses crop production planning, price guidance, and market oversight. Establishing a regulator to monitor market functionality, data privacy, interoperability and quality will ensure fair and efficient market operations and their digitization.