 "New Delhi: FM Nirmala Sitharaman and MoS Pankaj Chaudhary during a Pre-Budget Consultation meeting with representatives from Farmer Associations and Agriculture Economists ahead of the upcoming General Budget, in New Delhi. (PTI Photo)")
Agriculture experts, who met Finance Minister Nirmala Sitharaman during pre-Budget consultations on Friday, called for enhancing PM-KISAN support to Rs 8,000 per year from the existing Rs 6,000, more funds for agriculture research and transfer of all subsidies to farmers through direct benefit transfer (DBT).
The meeting came against the backdrop of the rather subdued performance in the general elections of the ruling BJP in rural areas. It gave insights into what leading experts think on the sector.
The meeting also comes at a time when gross value added (GVA) for agriculture and allied activities slumped to a five-year low of 1.4 per cent in FY24, according to the second advance estimates.
However, some prominent farmer groups such as the Left-leaning All India Kisan Sabha criticised the meeting.
It said the meeting was not represented by real farmers and important issues such as the legalisation on minimum support price (MSP) were overlooked.
The farmer groups also pitched for the rationalisation of fertiliser subsidies and infrastructure development to boost the sector's resilience against climate change.
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“Almost all participants wanted higher investment in agriculture research and development (R&D) with some saying it needs to double from their current levels. This will ensure that the farm sector growth is sustained,” a participant said.
The two-and-a-half-hour meeting saw stakeholders advocating for a significant hike in the budget allocation for the Indian Council of Agricultural Research (ICAR) from Rs 9,500 crore to Rs 20,000 crore.
Indian Chamber of Food and Agriculture (ICFA) chairman MJ Khan emphasised the need for “massive investment in agriculture R&D” to drive growth and increase farmer income.
Experts also called for consolidating all agriculture-related subsidies for transfer through DBT and increasing the retail price of urea, which has remained unchanged since 2018.
The promotion of bio and foliar fertilisers through subsidies was another key demand.
Bharat Krishak Samaj chairman Ajay Vir Jakhar suggested segregating agriculture funds between education and research.
He pointed out that despite the economic returns on agricultural research being 10 times higher than other investments, budget increases in the past two decades have lagged behind inflation rates.
He also wanted coal thermal power plants to procure 5 per cent of their power generation from agricultural residue. Other notable suggestions included disbanding the MSP committee, commissioning a new agricultural policy, and changing the funding ratio for human resource development in centrally-sponsored schemes from 60:40 to 90:10, with the Centre bearing 90 per cent of the cost for five years.
Experts also suggested increasing the budget allocation for Agricultural & Processed Food Products Export Development Authority (APEDA) from Rs 80 crore to Rs 800 crore to boost farm exports, creating district export hubs, and launching a National Goat and Sheep Mission.
The meeting was attended by former CACP chief and agricultural economist Ashok Gulati, senior agriculture journalist Harish Damodaran, and representatives from the National Institute of Agricultural Economics and Policy Research and the United Planters' Association of Southern India (UPASI), among others.
As the government prepares for the upcoming Budget, these recommendations highlight the pressing need for reforms and higher investment in the agricultural sector in light of climate change and to double farmer income.
The central government is set to present its annual Budget for 2024-25 next month. (With agency inputs)
GVA for agriculture forestry and fishing (at base price)
* Advanced Estimate
Source: MoSPI
