Cabinet Approves ₹1,01,321 Crore Budget Allocation for Agriculture
Cabinet Approves ₹1,01,321 Crore Budget Allocation for Agriculture
Modi 3.0 Government Prioritises Agriculture with ₹1,01,321.61 Crore Budget Allocation, Rejigs and Rationalises all Farmer-related Centrally-sponsored Schemes.
Modi Cabinet Approves ₹1,01,321.61 Crore for Agriculture
Introduction
In a move that underscores the high priority the Modi 3.0 Government accords to agriculture and farmers’ welfare, the Union Cabinet, chaired by Prime Minister Narendra Modi, today (3rd October, 2024) approved the rationalisation of all Centrally Sponsored Schemes (CSS) under the Ministry of Agriculture and Farmers' Welfare. These will now operate under two umbrella schemes: the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY), aimed at promoting sustainable agriculture, and the Krishonnati Yojana (KY), designed to achieve food security and agricultural self-sufficiency. The total budgetary allocation for these schemes stands at a massive ₹1,01,321.61 crore, reflecting the Modi 3.0 government’s strategic focus on boosting agricultural growth and improving the livelihoods of farmers.
Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY): A Sustainable Agriculture Approach
The PM-RKVY will promote sustainable agricultural practices through a flexible, state-driven approach. It is allocated ₹57,074.72 crore and is designed as a "cafeteria scheme," meaning states can choose from various components based on their specific needs. This scheme offers flexibility for state governments to prioritise key focus areas like:
Soil Health Management: Improving soil quality through regular testing and nutrient management.
Rainfed Area Development: Supporting agriculture in rain-fed regions by encouraging resilient practices.
Agro Forestry: Promoting tree-based farming systems that enhance sustainability.
Paramparagat Krishi Vikas Yojana (Organic Farming): Encouraging organic farming to boost sustainability and reduce dependence on chemical inputs.
Agricultural Mechanisation, Including Crop Residue Management: Aiding farmers with modern equipment, including solutions to manage stubble and crop residue to reduce air pollution.
Per Drop More Crop: Promoting efficient water use through micro-irrigation systems.
Crop Diversification Programme: Encouraging farmers to diversify their crop patterns to reduce over-dependence on certain crops and increase income opportunities.
RKVY DPR Component: A newly introduced flexibility to develop detailed project reports (DPR) that address state-specific agricultural challenges.
Accelerator Fund for Agri Startups: Supporting innovation by funding startups in the agriculture sector.
By rationalising these schemes, PM-RKVY enables states to create a Comprehensive Strategic Document that addresses the full spectrum of agricultural needs, from productivity and technology adoption to climate resilience and value chain development.
Krishonnati Yojana (KY): Ensuring Food Security and Agricultural Self-sufficiency
The Krishonnati Yojana (KY), with a total allocation of ₹44,246.89 crore, focuses on enhancing food security and agricultural self-sufficiency by leveraging modern technology and best practices. The KY consolidates various national agricultural missions, each tackling specific issues related to agricultural productivity, resilience, and value addition. The key components under KY include:
National Mission on Edible Oils (NMEO): Aims to boost domestic oilseed production and reduce India's reliance on costly imports. The NMEO is projected to make India self-reliant in edible oils by increasing production to 25.45 million tonnes by 2030-31, covering 72% of the country's projected demand.
Digital Agriculture: Leveraging data-driven approaches and cutting-edge technologies, such as precision farming, to improve agricultural efficiency.
Mission Organic Value Chain Development for North Eastern Region (MOVCDNER): A major component for promoting organic farming in the North East, now expanded with the Detailed Project Report (DPR) initiative to meet the unique challenges faced by the region.
These missions work towards strengthening the agriculture sector by enhancing production capabilities and integrating value chain development, thus moving towards agricultural self-sufficiency and Atmanirbhar Bharat (self-reliant India).
National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds): Targeting Self-reliance in Edible Oils
The National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), approved with a financial outlay of ₹10,103 crore, is a landmark initiative aimed at transforming India’s oilseed production. The mission will run over seven years (2024-25 to 2030-31) and will focus on increasing the production of key oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum.
Key features of the NMEO-Oilseeds include:
Target of 69.7 million tonnes of oilseed production by 2030-31, a significant increase from the current 39 million tonnes.
Expanding the cultivation of oilseeds into rice fallow areas and encouraging intercropping to make better use of available land.
Promotion of high-yielding seed varieties through genome editing and other advanced breeding techniques.
SATHI Portal: An online portal for Seed Authentication, Traceability, and Holistic Inventory, which will enable states to coordinate with seed-producing agencies and ensure the timely availability of quality seeds.
The mission will also promote value chain clusters, involving 600 clusters across 347 districts, where farmers will receive high-quality seeds and support from Farmer Producer Organisations (FPOs) and cooperatives.
Flexibility and Strategic Planning for States
A critical aspect of these reforms is the enhanced flexibility for state governments. Under the PM-RKVY, states can reallocate funds among different components to address their specific needs. Additionally, the requirement to submit separate annual action plans for each scheme has been streamlined, allowing states to submit one Annual Action Plan (AAP) for the entire agricultural strategy. This consolidation avoids duplication, ensures better convergence of efforts, and provides states the opportunity to tailor programmes to meet local challenges, such as climate resilience and the development of nutrition-sensitive agriculture.
A Strategic Opportunity for Punjab and Haryana
The Modi Government's budgetary allocation and reforms in agriculture present a significant opportunity for Punjab and Haryana, states that have long been leaders in agricultural production. The flexibility provided under PM-RKVY, coupled with the focused emphasis on oilseed production through the NMEO-Oilseeds, offers these states the chance to modernise their agricultural practices, enhance productivity, and diversify crop patterns. By capitalising on these schemes, Punjab and Haryana can lead the nation in adopting climate-resilient practices, improving value chain development, and contributing to India’s long-term food security and self-reliance. These reforms are crucial for ensuring the sustainability and prosperity of farmers in both states.
Addressing Concerns and the Broader Picture
While some sceptics have linked these initiatives to the BJP’s political fortunes in Haryana, which faces elections on 5th October, it is important to distinguish correlation from causality. The timing of these schemes may coincide with the elections, but the strategic relevance of these reforms to India's agriculture sector transcends electoral politics. That said, the primary demand of farmers in Punjab, Haryana, and western Uttar Pradesh remains unchanged: the statutory implementation of Minimum Support Price (MSP) for all crops, on pan-India basis. These new initiatives, while welcome and beneficial, can supplement but not supplant the farmers' demand for MSP to be enshrined in law. Addressing this core issue, alongside these significant reforms, is essential to building trust and ensuring long-term agricultural welfare across the country.