The budgetary support for agriculture has grown exponentially, from ₹11,915.22 crore in 2008-09 to ₹1,25,035 crore in 2023-24

EW correspondent:

New Delhi: Agriculture remains the backbone of India's economy, ensuring food security, generating employment, and contributing significantly to GDP. Over the years, the Government of India has significantly increased budget allocations to the agricultural sector, reflecting its commitment to fostering growth, improving productivity, and securing farmer incomes. The transformation is evident in rising food grain production, increased Minimum Support Prices (MSP), and farmer-centric initiatives like PM-KISAN and e-NAM.

The budgetary support for agriculture has grown exponentially, from ₹11,915.22 crore in 2008-09 to ₹1,25,035 crore in 2023-24. This increased investment underlines the government’s focus on modernizing the sector, supporting farmers, and ensuring sustainable agricultural growth.

India’s food grain production has surged due to improved agricultural practices and policy support. The total production has grown from 198.4 million tonnes in 2004-05 to an estimated 330.5 million tonnes in 2022-23. This growth is complemented by an expansion in the gross area under major crops, which has increased from 120.2 million hectares in 2004-05 to 132.1 million hectares in 2022-23.

The real Gross Value Added (GVA) in agriculture, forestry, and fishing has witnessed consistent growth. From ₹13.85 lakh crore in 2004-05, it rose to ₹26.42 lakh crore in 2022-23. The annual growth rate of real GVA, which was 1.4% in 2004-05, increased to 2.1% in 2022-23, indicating improved efficiency and diversification in agricultural activities.

Minimum Support Price (MSP) Enhancements

To ensure financial stability for farmers, the government has consistently increased MSPs:

- Paddy (Common) MSP has risen from ₹850 per quintal in 2008-09 to ₹2,183 per quintal in 2023-24.

- Wheat MSP has increased from ₹1,080 per quintal in 2008-09 to ₹2,275 per quintal in 2023-24.

- The total MSP paid to farmers has tripled, with paddy payments increasing from ₹4.40 lakh crore (2004-13) to ₹12.51 lakh crore (2014-24) and wheat payments rising from ₹2.27 lakh crore to ₹5.44 lakh crore in the same period.

Farmer-Centric Initiatives

Several schemes have been introduced to support farmers financially and structurally:

- PM-KISAN: Launched in 2019, it provides direct income support of ₹6,000 per year to farmers. Over ₹3.16 lakh crore has been disbursed to 11 crore farmers in 18 installments.

- PM Fasal Bima Yojana (PMFBY): Since its launch in 2016, ₹1.40 lakh crore in claims has been disbursed to 18.52 crore farmers, offering financial security against crop losses.

- Kisan Credit Card (KCC): Over the past decade, the number of KCCs issued has increased from 1,285.37 lakh (2012-13) to 1,895.81 lakh (2019), providing easy credit access to farmers.

- Institutional Credit Growth: Credit flow to agriculture has nearly tripled from ₹8.5 lakh crore in 2014-15 to ₹25.48 lakh crore in 2023-24.

Technological and Infrastructure Advancements

- e-NAM (National Agriculture Market): 1,361 mandis across 23 states and 4 UTs have been integrated, allowing 1.79 crore farmers to access better market prices. Transactions worth ₹3 lakh crore have taken place on this platform.

- Agricultural Infrastructure Fund (AIF): A fund of ₹1 lakh crore has been launched, of which ₹52,738 crore has been sanctioned for 87,548 projects, enhancing post-harvest management and storage infrastructure.

- Millet Promotion: Recognizing millets as a ‘superfood,’ the government has increased investment in millet production, reaching 175.72 lakh tonnes in 2023-24. A Global R&D Hub for Millets has been established with ₹250 crore allocated from 2023-26.

Food Grain Procurement and Distribution

Government procurement has played a vital role in ensuring fair farmer compensation and national food security. From 2004-14 to 2014-24, paddy procurement increased from 4,590 LMT to 6,900 LMT, while wheat procurement rose from 2,140 LMT to 3,072 LMT. This significant growth demonstrates the effectiveness of MSP policies and procurement strategies.

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