Agriculture sector expected to get special priority once again in budget allocation

22-Jan-2025 05:57 PM

The agricultural sector in India remains a cornerstone of the economy, with a large portion of the population directly dependent on it.

Despite industrial advancements, agriculture continues to contribute significantly to the country’s GDP and employment.

The government has consistently prioritized agriculture in its budget allocations, reflecting its importance.

In the financial year 2023-24, the Union Budget allocated Rs 27,662.67 crore to agriculture and related sectors, which increased to Rs 32,469.86 crore for 2024-25.

This shows a continued commitment to addressing the challenges faced by the agricultural sector, such as climate change, yield fluctuations, and the need for modernization.

Although there have been efforts to enhance the sector, programs like the Pradhan Mantri Fasal Bima Yojana have not seen the expected results.

Thus, the upcoming Union Budget for 2025-26 might focus on improving schemes like this, boosting agricultural loans, expanding the Kisan Credit Card program, and ensuring that PM Kisan grants continue for farmers.

The government has also been proactive in supporting the development of major crops, animal husbandry, and rural infrastructure.

A significant part of this effort involves the procurement of crops like paddy and wheat at Minimum Support Prices (MSP) and purchasing other essential crops as needed.

Moving forward, agricultural economists suggest that the budget may include increased financial support for producers, investment in digital infrastructure, and enhanced private sector participation in market linkages to improve efficiency and growth in the sector.