Farmers in focus: Budget-driven investment opportunities in agriculture
Explore the budget expectations for the agriculture sector to stay updated and seize emerging opportunities.
Finance Minister Nirmala Sitharaman is scheduled to present the full budget on February 1, 2025, amid widespread anticipation of measures addressing the concerns of a vital segment ‘farmers’- who remain a focal point due to their indispensable role in the country’s economy and food security. The agricultural sector’s significance is immense, supporting a substantial share of the population and serving as the foundation of rural economies.
Recognizing the critical role of agriculture, the government has outlined a comprehensive six-point strategy for agricultural development. This strategy focuses on enhancing infrastructure, promoting technology adoption, improving financial support and accessibility, implementing sustainable agricultural practices, building capacity through training, and introducing policy reforms and incentives to drive growth in the sector.
There is a growing demand for stronger financial support for farmers, including proposals to lower agricultural loan interest rates to 1 per cent and double the annual PM-KISAN installment from Rs 6,000 to Rs 12,000 to enhance financial assistance. Stakeholders are also advocating for a zero-premium crop insurance scheme under the Pradhan Mantri Fasal Bima Yojana to mitigate risks for small farmers, along with GST exemptions on agricultural inputs such as seeds, machinery, and fertilizers to reduce production costs.
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Infrastructure development remains a key focus, with calls for improved storage facilities like cold storage and warehouses to reduce post-harvest losses, as well as better transportation networks to ensure efficient movement of produce. Policy reforms are being urged to promote fair pricing, minimize the influence of intermediaries, and encourage sustainable practices, including organic farming, through targeted incentives and training programs. To strengthen India’s agricultural exports, experts recommend providing subsidies and support for exporters to enhance the global competitiveness of Indian agricultural products.
The agriculture sector could receive a much-needed boost if any of these predictions materialize, making it essential for investors to stay vigilant. Stay tuned for in-depth insights and quick updates on Budget Day.