Union Budget 2024 | Farm bodies seek higher agri R&D spending, subsidy reforms

Updated : Jun 21, 2024 17:38
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Editorji News Desk

In a pre-budget consultation with Finance Minister Nirmala Sitharaman, farm organisations and experts on Friday pitched for higher investment in agricultural research, rationalisation of fertiliser subsidies and infrastructure development to boost the sector's resilience against climate change.

The two-and-a-half-hour meeting saw stakeholders advocating for a significant hike in the budget allocation for the Indian Council of Agricultural Research (ICAR) from Rs 9,500 crore to Rs 20,000 crore.

Also read/watch - Full Budget 2024: Centre may increase capital expenditure and welfare spending

Indian Chamber of Food and Agriculture (ICFA) Chairman MJ Khan emphasised the need for "massive investment in agriculture R&D" to drive sector growth and increase farmers' income.

Experts also called for consolidating all agriculture-related subsidies for transfer through Direct Benefit Transfer (DBT) and increasing the retail price of urea, which has remained unchanged since 2018. The promotion of bio-fertilisers and foliar fertilisers through subsidies was another key demand.

Bharat Krishak Samaj Chairman Ajay Vir Jakhar suggested segregating agriculture funds between education and research.

He pointed out that despite the economic returns on agricultural research being ten times higher than other investments, budget increases in the past two decades have lagged behind inflation rates.

Other notable suggestions included disbanding the MSP committee, and commissioning a new agricultural policy for India and changing the funding ratio for human resource development in centrally sponsored schemes from 60:40 to 90:10, with the central government bearing 90 per cent of the cost for five years.

Experts also suggested increasing the budget allocation for APEDA from Rs 80 crore to Rs 800 crore to boost farm exports, creating district export hubs and launching a National Goat and Sheep Mission.

Union Budget

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