UP Budget 2024-25: Agriculture, Rural Sector, Women Get Significant Investment; Key Takeaways and Reactions

While presenting the UP Budget 2024, Uttar Pradesh Finance Minister Suresh Kumar Khanna mentioned that in the next fiscal year new schemes worth Rs 24, 863.57 crore. It has been estimated that the budget would see a deficit of Rs 15, 103.89 crore after total expenses.

"This budget is pink-budget with focus on 'Matri Shakti' and women-related schemes in the state," CM Yogi Adityanath said.

UP Budget 2024: Top Takeaways

The amount for the Destitute Women Pension Scheme has been increased from Rs 500 to Rs 1000 per month.

Rs 50 crore has been allocated to Chief Minister Khet Suraksha Yojna (Farm Security Scheme).

At least 200 Farmer Producer Groups will be formed to encourage Women Farmer Empowerment-Project

The budget aims to achieve a target of 5.1 percent growth rate in the agriculture sector in the state.

As much as Rs 200 crore will be allocated for State Agriculture Development Scheme

Similarly, World Bank-assisted UP Agris scheme will too get Rs 200 crore.

Moreover, Rs 60 crore have been assigned for automatic weather station guage in blocks and panchayats.

Electricity would be provided at a concessional rate as Rs 2400 has been allocated for that.

PM Kusum Yojna would get an investment of Rs 449.45 crore.

Noida International Airport gets Rs 1,150 crore.

Lastly, Rs 150 crore has been given for the expansion of Maharishi Valmiki International Airport in Ayodhya, while Rs 195 crore for sports infrastructure.

UP Budget 2024: Here's What People from the Industry Think

Dr KC Ravi, Chief Sustainability Officer, Syngenta India Pvt Ltd And Chairman Crop Life India

The robust physical-digital-social infrastructure, developed in the last decade has given the economy a good foundation for a Viksit Bharat by 2047. Digital infrastructure and infusion of technology is imperative to not only sustain the momentum but also to take the agriculture growth story to its logical conclusion. The focus on self-reliance in edible oils and investment in post-harvest activities are some of the measures that can make this happen.

The full Budget has to address some pending reforms needed to further boost the impressive growth of India's agrochemical sector. An enabling predictable science based policy environment is absolutely essential to provide farmers cutting edge technologies to fight against climate threats besides the ever increasing complex pests and diseases threatening crop yields. It is important that the industry is encouraged to invest in R&D for bringing newer molecules and technologies complemented by AI and digital technologies. Rationalising GST on agrochemicals to 12% (from current 16%) and allocating sufficient budgetary resources to introduce performance-linked incentives (PLI) will go a long way in consolidating and strengthening the agrochemical sector. Strategic policy decisions will propel India towards this growth, ultimately leading to a significant positive impact on further enhancing farmers' income. These would give a decisive push for to making Atmanirbhar Bharat.

Dinesh Patidar, Chairman, Shakti Pumps (India) Ltd. shares,

The government initiatives outlined well for sustainable growth, especially in the solar and agriculture sectors. The focus of the Budget on providing power supply to all masses and supporting farmers through schemes like Pradhan Mantri Kusum Yojana and Pradhan Mantri Suryodaya Yojana strengthens the Government's commitment to solar energy and the welfare of our farmers. The scheme to provide free solar electricity to 1 cr households is in line with our commitment to increase renewable energy and meet the energy needs of rural communities. By taking advantage of rooftop solar energy, households benefit from significant savings annually, while also contributing to environmental protection. It emphasizes entrepreneurship opportunities in solar supply and installation and opens up avenues for rural economic empowerment at the grassroots level. This will also meet the power needs of our electric vehicles. The government's approach to focus on private and public investment in the agriculture sector, modernizing agricultural infrastructure, and increasing the income of farmers is commendable. I am hopeful that all the initiatives highlighted in the Budget will have a positive economic impact on both the solar and agriculture sectors in India in the coming months. Shakti Pump remains committed as always to extending the benefits of both these schemes to all people".

Amit Patjoshi, CEO, Palladium India, says,

"We commend the government's strong commitment to the agricultural sector evident in the Budget. The focus on value addition and income augmentation for farmers is pivotal, and the success of initiatives like Pradhan Mantri Kisan Sampada Yojana, benefiting 38 lakh farmers, is truly commendable. The support extended through Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana, assisting 2.4 lakh SHGs and 60 thousand individuals, reflects a holistic approach towards empowering the agricultural community. The emphasis on reducing postharvest losses and enhancing productivity aligns with the sector's long-term sustainability. Furthermore, the launch of schemes promoting climate-resilient activities for the blue economy 2.0 is a forward-looking step. This integrated and multi-sectoral approach for coastal aquaculture and mariculture, coupled with restoration and adaptation measures, holds promise for sustainable growth. Overall, this budget signals a positive trajectory for the agricultural sector, laying the foundation for a more resilient and prosperous future."

Reacting to the budget Mr Deepak Shah, Chairman CCFI said, “Indian agrochemical industry has resilience and demonstrated it’s potential in indigenous manufacturing both in terms of production and quality. Alone exports of Rs. 45000 crs. majorly by our members to 152 countries makes us confident that Govt. should work towards making India a manufacturing hub.

However in order to focus on “MAKE IN INDIA” there is an imperative need to increase customs duty on import of agrochemicals, both technical and formulations, for “ATMA NIRBHAR Bharat” & “MAKE IN INDIA” to happen. Hence, the customs duty must be increased both on technical & formulations from existing 10% which is a disincentive for Indian manufacturers ( favourable to importing lobby) and draining our valuable foreign exchange & hence Chinese imports are not forced/dumped in India & our own grass root manufacturing industries suffer as only less than 45-50% manufacturing capacity is utilised currently”. It would be pertinent to share that we have already made heavy investment in R&D & manufacturing as well as CCFI has reiterated the long pending demand of the Indian agrochemical industry and strongly recommends enhancing custom duty on Technical to 20% and 30% on import of all formulations OR at least maintain a delta of 10% between the two to minimize import of formulations which has no value addition, and quality of technical used is questionable as majority of imports are from China.

“Investment in agriculture needs impetus to sustain MSMEs besides incentivise the Indian manufacturers by including this Champion sector under PLI scheme with fresh investment of ₹12500 cr. in next 3 years.

"In conclusion, the unveiling of the Uttar Pradesh Budget 2024-25 underscores a strategic focus on 'Matri Shakti,' amplifying efforts towards women's empowerment and holistic rural development. With substantial allocations for key agricultural initiatives, including the Chief Minister Khet Suraksha Yojna and support for Farmer Producer Groups, the state aims for a commendable 5.1 percent growth rate in the agricultural sector. The budget's commitment to uplifting destitute women through a doubled pension and promoting Women Farmer Empowerment Projects further reflects its dedication to inclusive development. Additionally, significant investments in state agriculture, weather monitoring, energy accessibility, and infrastructure projects such as Noida International Airport and Maharishi Valmiki International Airport showcase a comprehensive approach to fostering growth and sustainability. Uttar Pradesh's financial blueprint for the upcoming fiscal year stands as a testament to its commitment to balanced progress and the well-being of its citizens."