In 2022, a nationwide heatwave devastated crops and pushed wheat production down significantly. A 2023 World Bank report estimates that India could lose up to 5% of its GDP by 2050 due to climate-change impacts on agriculture alone. This calls for a multi-pronged approach. Investing in R&D of climate-resilient crop technologies is essential. Budgetary allocations should support developing and distributing seeds that thrive in unpredictable weather patterns.
Research into drought-resistant varieties of staple crops like rice and wheat is crucial. Dedicated mega missions on pulses and oilseeds to bring atmanirbharta in the next five years is a dire need. Also, promoting organic/regenerative farming practices like crop rotation, mulching and composting can improve soil health and water retention, making farms more resilient to droughts.
The budget should also pave the way for establishing climate-resilient clusters (CRCs) in vulnerable and risk-prone blocks, serving as knowledge centres. They will provide real-time data to farmers, enabling them to make informed decisions about crop selection, sowing schedules and irrigation practices – a data-driven approach to improve agricultural productivity and mitigate the impact of climate change.
Improving efficiency in water use for agriculture is critical amid the looming water crisis. This requires institutional restructuring and strengthening business ecosystem for promotion water-efficient technologies such as micro-irrigation.
The agricultural landscape can be transformed by digital initiatives like Open Network for Digital Commerce (ONDC) and National Agriculture Market (e-NAM). These platforms empower farmers by connecting them directly to markets, eliminating exploitative middlemen. By strengthening and promoting these platforms, the budget can ensure better market access and, hence, fairer prices for farm produce.India’s agricultural export potential is yet to be explored. While the country is the world’s second-largest producer of fruit and vegetables, and a leading producer of rice, wheat and cotton, its share in global agricultural exports is a mere 5%. The 2024 budget can unlock this potential by establishing districts as export hubs (DEHs) nationwide. Collaborating with relevant agricultural commodity boards, these hubs will act as focal points for consolidating, processing and preparing local produce to meet international quality standards.By integrating the ‘One District, One Product’ initiative involving farmer-producer organisations (FPOs), these hubs can leverage the unique agricultural strengths of each district.
Indian agriculture has been a prolonged beneficiary of the subsidy regime. With over 80% of subsidies allocated to fertilisers and electricity, this requires a critical re-evaluation. The budget should move towards a more balanced approach to subsidies. A ‘Green and Clean Subsidy Programme’ could be established to promote organic farming practices, and encourage the adoption of water-efficient technologies.
With its large-scale farming and robust research and development sector (Embrapa), Brazil has achieved remarkable agricultural productivity and export growth strides. An equivalent of Embrapa is essential to foster a thriving agribusiness ecosystem in India.
The budget can incentivise better linkages between producers and processors, establishing dedicated processing facilities closer to special agricultural production zones, on similar lines of SEZs, thereby minimising transportation costs and ensuring timely processing of perishable goods. Strengthening the Warehousing Development and Regulatory Authority (WDRA) will play a critical role.
The 2024 budget isn’t a mere financial document. It’s a chance to rewrite the narrative of Indian agriculture. A transformative budget won’t just ensure food security but it will also empower rural communities, revitalise the sector and position India as a global leader in sustainable agriculture.
Singh is member, Commission for Agricultural Costs and Prices (CACP), agriculture ministry, GoI