Budget 2024: Sitharaman pushes for climate change & self-reliance, falls short on dairy sector's demands

Union Finance Minister Nirmala Sitharaman has pushed for climate adaptation of crops and agricultural start-ups in the Union Budget 2024-25.

Sitharaman has also sought to boost India’s self-reliance in pulses and oilseeds, but voices in the industry have said that she has fallen short of expectations on the crucial sector — India is the largest dairy producer in the world.

With a hike of nearly 5 per cent, Sitharaman allocated Rs 1.52 lakh crore for agriculture and allied activities.

In addition to the production-related announcements, Sitharaman also announced a comprehensive review of agricultural research and development (R&D) in the country.

“Our government will undertake a comprehensive review of the agriculture research setup to bring the focus on raising productivity and developing climate resilient varieties. Funding will be provided in challenge mode, including to the private sector. Domain experts both from the government and outside will oversee the conduct of such research,” said Sitharaman in her budget speech.

Sitharaman puts climate adaptation on top of agenda

As the climate change-induced unseasonal and erratic rainfall affects the crops in the plains and flooding and lack of snowfall affects the produce in the hills, experts have long said that crops and farming techniques need to adapt to the changing climate.

Sitharaman has sought to address that through the budget.

Sitharaman announced the introduction of 109 new high-yielding and climate-resilient varieties of 32 field and horticulture crops for cultivation.

Coupled with the review of agricultural R&D set-up that Sitharaman announced, these steps will ensure “the effectiveness and relevance of developing climate-resilient seeds”, says Ankur Aggarwal, Managing Director of Crystal Crop Protection Limited.

Notably, in recent years, the farming of fruits has been particularly hit, specially in the Himalayan regions as snowfall as well as rainfall has been very erratic.

Abhishek Sharma, a senior agricultural researcher at Sambodhi, which focuses on multidisciplinary research on development issues, tells Firstpsot the announcements are “a step toward increasing food availability and self-sufficiency and checking shocks due to climate change”.

“This is a boon, especially for small-holder farmers who are most vulnerable to climate shocks,” says Sharma, Assistant Vice President of Research at Sambodhi.

Push for natural farming & self-sufficiency

Sitharaman announced that, over the next two years, the Union government will train 1 crore farmers in natural farming practices.

Such training will be supported by certification and branding efforts, said Sitharaman.

Sharma of Sambodhi described the move as “pathbreaking”.

“The success stories of these farmers will encourage others to adopt these sustainable practices and help minimise the health problems due to the indiscriminate use of synthetic chemical inputs, rejuvenate soil health, and restore the ecosystem,” says Sharma.

To support these steps, Sitharaman said the government plans to set up 10,000 need-based bio-resource centres.

As far as specific sectors are concerned, Sitharaman announced a self-sufficiency push for pulses and oilseeds. For this, she said the government will enhance the storage and marketing ecosystem for these crops.

Sitharaman also announced that the government also plans to develop digital public infrastructure (DPI) for agriculture that will be developed in partnership with states, integrating 6 crore farmers and their land into a digital registry.

Dairy sector feels left out

While Sitharaman mentioned the dairy sector in her Interim Budget speech in February, she skipped the sector entirely in the Budget speech on Tuesday.

In the Interim Budget, Sitharaman announced that the government will develop a “comprehensive programme for supporting dairy farmers” but nothing like this was mentioned in the Budget.

Ankit Patel, Co-Founder & CBO of eFeed, tells Firstpost, “While Budget 2024 introduced several measures for the agricultural sector, it notably fell short in addressing the specific needs of cattle farmers. To increase their income, the government should consider targeted subsidies for cattle feed, investment in veterinary healthcare, and incentives for sustainable farming practices.”

Madhur Sharma is a senior sub-editor at Firstpost. He primarily covers international affairs and India's foreign policy. He is a habitual reader, occasional book reviewer, and an aspiring tea connoisseur. You can follow him at @madhur_mrt on X (formerly Twitter) and you can reach out to him at [email protected] for tips, feedback, or Netflix recommendations see more