Budget 2024: FM Nirmala Sitharaman Announces Agricultural Reforms, Allocates Rs 1.52 Lakh Crore to the Sector

Sitharaman announces a focus on agricultural research to boost productivity and promote climate resilience.

Finance Minister Nirmala Sitharaman has allocated Rs 1.52 lakh crore for agriculture in the Union Budget 2024, which is expected to potentially increase rural demand for agriculture and allied sectors.

Sitharaman announced the release of 109 high-yielding and climate-resilient varieties of 32 field and cultivation crops for farmers in the upcoming financial year. The budget prioritises productivity and resilience in agriculture, with the government reviewing research for climate-resilient seeds. The government will also promote digital public infrastructure for agriculture in partnership with states. Over the next two years, one crore farmers will be initiated into natural farming.

Additionally, the establishment of five integrated Aqua Parks, the expansion of Nano-DAP's application to all agroclimatic zones, the acceleration of the implementation of the Pradhan Mantri Matsya Sampada Yojana, the empowerment of dairy farmers, the launch of Blue Economy 2.0 to promote aquaculture, and direct financial assistance to 11.8 crore farmers under PM-KISAN were among the other significant budget proposals. 

To improve the supply chain for vegetables, the budget recommended the establishment of large-scale vegetable production clusters near major consumption hubs. The finance minister unveiled a three-year plan to enhance digital public infrastructure for agriculture, aiming to fully cover farmers and their properties. She stated that a computerised crop survey for Kharif crops will be undertaken in 400 districts this year, incorporating the information of six crore farmers and their holdings into farmer and land registries.

Following the announcement, shares of agri-related companies—Kaveri Seed Company Ltd, Jain Irrigation Systems Ltd, Agri-Tech India Ltd, Mangalam Seeds, JK Agri Genetics, and Nath Bio-Genes—soared 2-15 per cent.

Disclaimer: The article is for informational purposes only and not an investment advice.