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MOFS Report
MOFS Report
MOFS Report
MARKET SIZE:
According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion
by 2025.
EXPORT TRENDS:
India’s agriculture sector primarily exports Agri & allied products, marine products,
plantation, and textile & allied products. Agri & allied products exports were valued at US$
37.3 billion, recording a growth of 17% over 2020-21.
Interpretation:
In April-January 2024, the overall value of export of agricultural products stood at
US$ 38.65 billion.
In 2022-23, the agricultural exports from India stood at US$ 52.50 billion.
During 2021-22, the country recorded US$ 50.2 billion in total agriculture exports
with a 20% increase from US$ 41.3 billion in 2020-21.
The Union Budget for 2024-25 was presented by Finance Minister Nirmala Sitharaman on 1
February 2024. Start-ups for agricultural and rural enterprises will be funded by NABARD.
Under the PM-KISAN initiative, 11.8 crore farmers will receive direct financial help.
Furthermore, 4 crore farmers would receive crop insurance coverage thanks to the PM Fasal
Bima Yojana.
India, the world's largest milk producer, extends Animal Husbandry Infrastructure
Development Fund.
• Budget allocates Rs 29,610.25 crore for three years until 2025-2026.
• Initiatives include dairy processing, product diversification, breed multiplication farms,
animal feed plants, waste management, and veterinary drug and vaccine production.
• Government plans a comprehensive Dairy Development program to empower farmers,
improve productivity, and control foot and mouth disease.
4. BUDGET COMPARISON:
Ministry/demand Revenue (in cr) Capital(i Total(in cr)
n cr)
MINISTRY OF AGRICULTURE AND 127367.74 102.14 127469.88
FARMERS WELFARE
FURTHER COMPARISON:
The flagship crop insurance scheme was allocated ₹14,600 crore for 2024-25 (budget
estimates or BE), lower than the ₹15,000 crore spent in 2023-24 (revised estimates or RE).
The marginal cut comes on the back of patchy rains last year and farmers suffering crop
losses due to both excess and deficit rains in some pockets.
Funds for another key scheme PM-AASHA—which is used to purchase crops like pulses and
oilseeds from farmers at minimum support prices—were slashed to ₹1,738 crore in 2024-25
(BE) from ₹2,200 crore in 2023-24 (RE). Surprisingly, the cut was despite the government
launching a portal for procurement of pulses last month. Budget documents show that the
actual spending for the price support scheme was over ₹4,000 crore in 2022-23.
The budget did not raise the annual cash transfer benefit to farmers under the PM-Kisan
scheme. It was widely expected that the government will increase the annual ₹6,000
transferred to every eligible farm family, ahead of the general elections due in a few months.
The allocation for the scheme was kept unchanged at ₹60,000 crore.
Another flagship scheme, the national mission on natural farming – which aims to reduce use
of chemical inputs in farming—was allocated a paltry ₹366 crore for 2024-25 (BE) compared
to ₹459 crore in 2023-24 (BE). Revised estimates show that during the current financial year,
the spending on the scheme was just ₹100 crore.
6. RECOMMENDATION:
7. CONCLUSION:
The Indian government's agricultural budget for 2024-25 shows a cautious approach to
spending. While there's a marginal increase overall, some crucial programs like crop
insurance and price support for key crops see funding cuts. This could potentially leave
farmers more vulnerable and hinder efforts towards self-sufficiency. Re-evaluating spending
priorities and investing in areas like infrastructure, innovation, and sustainable practices
could lead to a more robust and resilient agricultural sector in the long run.