Interim Budget 2024: may significantly enhance allocation for farm sector schemes

Interim Budget 2024: The government is likely to significantly enhance allocation for key farm sector schemes and push credit in the interim Budget to boost rural economy as growth in the agriculture sector is projected to decelerate to 1.8% in 2023-24 from 4% a year ago. Finance Minister Nirmala Sitharaman is scheduled to present the interim Budget on February 1, which will be the last major economic document of the Narendra Modi-led government ahead of the 2024 Lok Sabha elections.

The industry chamber also made a case for moving towards dispensing fertilizer subsidies directly as cash transfers to farmers. India needs budgetary support and stronger Farmer Producer Organisations to optimise operations and tap into emerging market opportunities, Gaurav Manchanda, Founder & Managing Director of The Organic World, said. “Higher farm insurance outlays, greater investment in rural employment schemes, better irrigation facilities, and improved rural infrastructure can make a huge difference,” he said.

In the Union Budget for FY24, Sitharaman allocated Rs 1.25 lakh crore to Ministry of Agriculture and Farmers’ Welfare, including Agricultural Education and Research. The allocation was increased manifold from Rs 27,662.67 crore in 2013-14.