Context:
Update on a previous year’s initiators with continuation of schemes which are well functioning.
The reduced gap between Budget Estimates (BE) Revised Estimates (RE) signifies better performance in implementation.
Resource Allocation Sector wide
- Agriculture, animal husbandry, fishery, food processing, public distribution, rural infrastructure, and employment got from 3% to 6% higher allocations.
- Consumer Affairs reduced by 58% because of the disappearance of the price stabilization fund.
- Ministry of food processing got 33% more, mainly for micro food processing at household level.
Key New Initiatives and their likely Impact
- Dhan Dhanya Krishi Yojana (₹ 100 lagging districts)
- It focuses on agricultural productivity, credit access and infrastructure.
- Rural Prosperity and Resilience Programme
- It will focus on underemployment and migration, aiming to address it through skilling, technology integration, and revitalizing economies.
- Needs to be district specific plans because of varied needs and level of infrastructure in each district.
Pulses Self Sufficiency Mission (₹1,000 crore)
- Targets tur, urad, and masoor production.
- Strategy: tech driven productivity improvement (price support through procurement).
- Challenge: Open ended procurement risks (estimated cost ₹13,000 ₹19,000 crore according to market condition).
High Yielding & Climate Resilient Seeds Initiative
- Intended to improve seed availability and affordability.
- Continuation of efforts in climate resilient farming from the past.
Value Chain Development for Fruits & Vegetables (₹500 crore)
- Last year’s effort on vegetables alone to extend it this year to include fruits.
- Goal: Efficient supply chains & price stability for farmers.
Sector Specific Missions
- Deep sea fishing: Continuation of shrimp farming program from the previous year.
- Cotton productivity: Much needed reform long overdue.
- Makhana Board in Bihar: Local agricultural processing is given a fillip.
Structural Challenges in Urgent Attention
- Agricultural Market Malfunction
- The density of regulated markets is varying from state to state. (Punjab: 119 sq km per market vs Meghalaya: 11,215 sq km).
- All India average
- 487 sq km per market which is not even close to the 80 sq km target recommended by National Farmers Commission (2004).
- The very urgently due GrAM scheme (₹2,000 crore under NABARD) for upgrading of 22000 rural markets needs fast track processing.
State Coordination and Governance Deficits
- Agriculture and rural development are State subjects as per Constitution.
- Proposal for an Inter-State Council (as GST Council) will give impetus for better coordination between Centres and states.
