She has announced serious cuts in the income tax rates. Her announcements would surely cheer the middle classes, even though it is the relatively rich who will end up getting more money in their hands. So, we can expect luxury items to attract even more buyers.
The farmers expectation for a hike in PM Kisan (₹6,000 per annum) has not been fulfilled and the allocation for PM Kisan (₹63,500 crore) remains the same as in 2024-25.
However, out of 10 development measures announced by the FM, the topmost priority was rightly reserved for agriculture with emphasis reserved for ‘spurring agricultural Growth and productivity’.
She announced a new scheme, the Prime Minister Dhan-Dhaanya Krishi Yojana, which will be implemented in 100 districts, which have low productivity. Since there is no separate allocation for this scheme in the Budget, in all likelihood, money will be found from other schemes.
It must be noted that since 2010-11, the Centre has been running a centrally sponsored scheme titled ‘Bringing Green Revolution to East India’. It covers Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, Eastern Uttar Pradesh, and West Bengal. The results have been mixed, but the higher yield of maize in Bihar’s rabi crop is a success story.
Pulses push
There is an important announcement on self-sufficiency in pulses — the six-year mission for tur, urad and masoor. Nafed and NCCD will procure entire quantity of these pulses offered by farmers. But the caveat is the farmers will have to enter into an agreement with these organisations.
In the Department of Agriculture and Farmers Welfare, the allocation for procurement of pulses and oilseeds is to be found in PM-AASHA but the Budget Estimate is only about ₹500 crore more than the Revised Estimate of 2024-25.
It is unlikely that this amount will be enough to enable the government to procure entire quantity offered by pulses producers. However, open ended and assured procurement of pulses is to be welcomed.
An important announcement in the setting up of a National Mission on High Yielding Seeds. This is to promote development of seed varieties which are high yielding and are climate resistant.
Last year, in the Budget, the FM had announced a comprehensive review of the agriculture research setup to ‘bring the focus on raising productivity and developing climate resilient varieties’.
In an innovative decision, it was announced that funding for such research will be provided in ‘challenge mode’ by giving opportunity to private seed companies also to develop seeds which are climate resistant. Expertise of ICAR and private sector was to be taken for supervising such research.
The progress on this count is however not known. It must be noted that much of the success achieved in several field and horticulture crops has come from hybrid varieties developed by private seed companies, both Indian and multi-national.
Seeds initiative
On August 11, 2024 the Prime Minister released 109 high-yielding, climate-resilient, and biofortified seed varieties of agricultural and horticultural crops. These were developed by the Indian Council of Agricultural Research (ICAR) and they covered 34 field crops and 27 horticultural crops. Availability of seeds of these varieties and their adoption by farmers is not quite known.
The PM has rightly emphasised the promotion of biofortified crop varieties. Private sector’s participation in challenge mode can surely result in the success in developing such seeds.
However, research requires liberal funding, patience and time. The Budget allocation of Department of Agricultural Research and Education (DARE) does not inspire confidence in this respect.
Cotton thrust
Another important announcement is the five-year ‘Mission for Cotton Productivity’. India has to import extra long staple cotton which is used for making high-quality fabrics.
In the last two decades, Vietnam and Bangladesh have been able to substantially increase their textile exports, but Indian exports have stagnated around $35 billion. These countries have been helped by free trade agreements (FTAs) and Least Developed Country (LDC) status, which provides them a 10-15 per cent duty concession in the Western countries. Export of cotton from India has substantially declined after 2021-22.
A cotton mission will surely help in improving the yield of cotton which has been stagnating for several years as new genetically modified varieties have not been allowed, and government procurement of paddy has caused some discouragement to cotton.
It would be unrealistic to expect the Budget to address all the challenges of Indian agriculture. But the direction shows that the government realises that success of agriculture is central to India’s growth story.
The writer is former Union Agriculture Secretary
