印度國際經(jīng)濟關(guān)系研究委員會-農(nóng)業(yè)和食品預(yù)算

1

BudgetingforAgricultureandFood

Volume-2|Issue-4|April,2023

TEAM

AF-TAB

INSIDETHEISSUE

FromtheDirector’sDesk

FromtheChiefEditor’sDesk

n

BudgetforDevelopment

RitikaJunejaandAshokGulati

n

AWayForwardtoDoubleFarmers'Income

RanjanaRoyandAshokGulati

n

BudgetingforNutrition

ShymaJoseandAshokGulati

n

GreenGrowthinAgriculture

ReenaSinghandAshokGulati

APSIintheField

Bibliothèque

ChiefEditor

ASHOKGULATI

Editor

REENASINGH

LogisticsCoordinator

RAHULARORA

Contactus:

ICRIER

CORE-6A,4thFloor,IndiaHabitatCenter,LodhiRoad,NewDelhi–

110003,INDIA

(Email:agriculture@icrier.res.in)

/pages/ICRIER/437689439633802

/@icrier

/company/icrier

/user/ICRIER

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FromtheDirector'sDesk

TheUnionBudget2023-24waspresentedagainstthebackdropofsomecriticalgeopoliticaldevelopmentsandwasthelastfullbudgetbeforethenextgeneralelections.Signiicantly,2023isalsotheyearinwhichIndiabecamethemostpopulatedcountryintheplanetandassumedtheG20presidency.TheBudgetservedasanopportunityforIndiatooutlineitscontributionforshapingtheglobalagendaandstrengtheningitsG20priorities.Alsobeingtheirstbudgetofthepost-COVIDperiod,itlaidoutablueprintforacceleratingtheIndiangrowthstorywhilelayingdownsevenprioritiesoftheUnionGovernment.

ThisissueofICRIER'sAgriculturePolicy,SustainabilityandInnovation(APSI)quarterlypublication,Agri-FoodTrendsandAnalyticsBulletin(AF-TAB)on

"BudgetingforAgricultureandFood”focusesonbudgetaryanalysis,particularlyaroundagriculture,subsidies,nutritionalsecurity,doublingfarmers'incomeandgreengrowthactions.

TheHon'bleFinanceMinisteractedonthewindowofopportunitytosigniicantlyreducenumeroussubsidiesnowthattheCOVID-19outbreakisundercontrolandglobalcommoditypricesarefalling.Forinstance,theamountspentonfoodsubsidieswascutfromRs.2.87trillioninFY2022-23toRs.1.97trillioninFY2023-24,andtheamountspentonfertilizersubsidieswasdecreasedfromRs.2.25trilliontoRs.1.75trillion.Similarly,theMGNREGAbudgetwascutfromRs.894billiontoRs.600billionthisyear.Thoughtheruralpoorareatadisadvantagefromthestandpointofexpenditureallocation,theywillbeneitfromtheplethoraofnewprojectslaunched.

Overall,thebudgetappearedtohavestrucktheappropriatebalancebetweengrowth,distribution,andstabilityatatimewhentheglobaleconomyisgrapplingwithseveralcrisesatonceandtheIndianeconomyisworkingtoresumeapathofrapidgrowththatisalsoinclusive.However,thewaitjustgotalittlebitlongerforthoselookingforboldstructuralreformstoputIndiabackonthepathof8-10percentgrowth.

DeepakMishra

Director&ChiefExecutive

ICRIER

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FromtheChiefEditor’sDesk

Agricultureandalliedsectorscontinuetomovewitharesilientmoderategrowthrateandwidelydocumentedchallengeswhicharegettingcompoundedwiththeclimatechangeimpacts.Thesectorhasrecordedanaverageannualgrowthrateof4.6percentoverthelastsixyears,employs45.6percentoftheworkforceandcontributedto18.6percentofthecountry'sGrossValueAddedin2021-22.Stillitsviability,asanoccupation,remainsamajorconcern.Therefore,thebudgetaryprovisionsannouncedforagri-foodpoliciesinUnionBudget2023-24needtobeunderstoodfromthelong-termperspectiveofagriculturesectordevelopment.Atatimewhenitseemsthatwehaveleftthepandemic

behind,thisissuepresentsananalysisoftheagriculturesectorprioritiesinUnionBudget2023-24.BeingthelastfullBudgetbeforethegeneralelectionsduenextyearandtheirstbudgetofAmritKaaladdstoitsessence.

Budget2023tookaboldsteptowardsreorientingsupportintheagri-food-ruralspace,awayfromdolesandtowardsdevelopment.Drasticcutsinfoodandfertilizersubsidy,andonMGNREGA,amountedroughlytoRs.1.7trillionwereannounced.Savingsfromthesedoleshavebeenredirectedtowardsmoreproductiveexpendituresonrailways,roads,ruralhousingandjalshaktithatwillhelpruralIndiathroughmultipliereffect.Budget2023alsoaccordedduepre-eminencetoagriculturalresearchandeducationwithanincreaseof9.8percentinallocationscomparedtolastyear.Thisanalysisofdolesincomparisonwithdevelopmentispresentedinirstarticleofthisissue.ManykeyprovisionshavebeenmadeforAgricultureandFarmers'WelfareintheBudgetfortheFY2023-24,whichisRs.1.25lakhcrorethistime(includingAgricultureEducationandResearch).Outofthis,provisionofRs.60,000crorehasbeenmadeforPM-Kisan,Rs.23,000forKCCandRs.13,625forPMFasalBimaYojana.Thatmeans77percentoftheagriculturebudgetallocationisforsafetynetsandmerely23percentforagriculturedevelopmentactivities.Thereisaneedforre-orientingtheagriculturebudgettowardsdevelopment,atleast50-50.

Hon'blePrimeMinisterofIndia,ShriNarendraModi,madeanambitioustargettodoublefarmers'incomeby2022-23(on2015-16baseyear)andtoachievethistarget,therequiredgrowthrateattheall-Indialevelwasestimatedtobe10.4percent(AshokDalwaicommittee).Wehavecompletedthetargetyear,butthebudgetdidnotpromiseanycriticalpolicytowardsfulillingthatgoal.Asperthereporton'TheStateofFoodSecurityandNutritionintheWorld2022',Indiahasthelargestundernourishedpopulationgloballywhichstoodat224.3millionofthe702.7millionpeoplein2019-21.Thethirdarticleoftheissuepresentsdistrict-wiseanalysisofunderweight,stuntedandwastedchildrenacrossIndiandistrictsandevaluatestheoptionstodovetailourbudgetaryallocationinline

withthetargetsoftheSustainableDevelopmentGoal(SDG)ofendingallformsofmalnutritionby2030.Thereisalsowidespreadacknowledgementthatgrowthinagriculturesectorhascomewithacosttotheenvironment,especiallytoair,water,soil,andgreen-housegas(GHG)emissionstotheenvironment.Continuationof“business-as-usual”approachtomeetingtherisingdemandforfoodwillresultinusingnaturalresourcesbeyondtheirecologicalcarryingcapacity.ThelastarticlecommentsontheimportanttrendsandprioritiesinUnionGovernment'sresourceprovisioningforgreengrowthinagricultureandalliedsector.

WesincerelyhopethispublicationbyAPSIwouldhelpdeepenthepublicandpolicydiscourseinthecountryontheUnionBudgetandpublicinancingofagri-food-ruralsphere.

AshokGulati

DistinguishedProfessorICRIER

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BudgetforDevelopment

RitikaJunejaandAshokGulati

TheUnionBudget2023-24wasannouncedonFebruary1,2023bytheUnionMinisterofFinanceandCorporateAffairs,SmtNirmalaSitharaman.Sevenkeyprioritiesofthebudget'Saptarishi'wereinclusivedevelopment,reachingthelastmile,infrastructure,andinvestment,unleashingthepotential,greengrowth,youthpowerandfinancialsector(MinistryofFinance,2023).Asfarasthefood,agricultureandruralsectorisconcerned,thisistheforward-lookingbudgetthatreorientsspendingawayfromsubsidiesandfreebiestowardsmoreproductiveoverheadsthataimstobenefitRuralIndia(Gulati&Juneja,2023).Broadly,budgetinginagriculturesectorcanbedividedintotwocategories:budgetprovisionsforindividualfarmer-centricsupport(e.g.subsidies,directincomesupport,credits,riskcoveretc.)andprovisionsthatincreasetheoverallcapacityofthesectorthroughimprovementsininfrastructureandagriculturalpractices(e.g.researchandextension,mechanisation,post-harvestandvaluechainsmanagement,institutionalsupportetc.).Food,fertiliserandMGNREGAhaddominatedpreviousagri-food-ruralsectorbudgetsandthebiggesthighlightoftheUnionBudgetFY2023-24isthatthesethreebig-ticketitemshavebeenmajorlyrationalised.Thefoodsubsidy,againsttherevisedestimates(RE)ofFY2022-23atRs.2.87lakhcrorewasbudgetedinFY2023-24atroughlyRs.1.97lakhcrore,resultedinnetsavingofRs.90,000crore.This

givinganextra5kgofgrainfreetomorethan81crorepeopleofthecountry(Gulati,2023).Thisschemewas,however,stoppedfromJanuary1,2023andinsteadPDSsuppliesundertheNationalFoodSecurityAct(NFSA),forwhichriceandwheatwerebeingchargedRs.3andRs.2perkg,arenowmadefree.Secondbiggestsubsidy–forfertilisers,wasalsorationalisedfromRs.2.25lakhcroreduringFY2023-24(RE)toRs.1.75lakhcroreduringFY2023-24(BE)–asavingofaboutRs.50,000crore(Table1).Also,theprovisionunderMGNREGAwasslashedfromaboutRs.89,400croreinFY2022-23(RE)toRs.60,000croreinFY2023-24(BE),resultedinnetsavingofaboutRs.29,400crore.Cumulatively,savingsfromthesethreemajordolesaccountedforroughlyRs.1.7lakhcrorehavebeenredirectedtowardsproductivedevelopmentofruralinfrastructure,throughinvestmentsinrailways,roads,ruralhousing,andaccesstodrinkingwatertoall.Focusonfiscalprudencehelpedtheuniongovernmentinmanagingtoadheretothebudgetedfiscaldeficittargetof6.4percentofGDPinFY2022-23(RE)notwithstandingthechallengesinducedbythepandemicandsupply-sidedisruptionsemanatingfromtheRussia-Ukrainewar(Soodet.al.,2023).InFY2023-24,thegovernmentbudgetstofurtherconsolidatecountry'sgrossfiscaldeficitto5.9percentoftheGDP(MinistryofFinance2023).Therationalityinrestrainingsubsidiesandincreasingcapitalexpenditureaimstostrengthengrowth

wasachievedbydiscontinuingtheearlierPradhanMantriGaribKalyanAnnaYojana(PM-GKAY),whichwasstartedduringtheCOVID-19periodby

momentumandtheeconomicfoundationswithcommitmenttofiscalconsolidationthroughitsmultipliereffect(Soodet.al.,2023).

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Table1:BudgetaryAllocation:FY2023-24(BE)vsFY2022-23(RE)

SafetyNets/SubsidyforFarmers

DevelopmentExpenditure/Assetcreation

Scheme/Ministry

RE(FY2022-23)Rs.Crore

BE(FY2023-24)Rs.Crore

NetofBE(FY2023-24)

overRE(FY2022-23)

Rs.Crore(%change)

MahatmaGandhiNationalRuralEmploymentGuaranteeAct

89,400

60,000

-29,400(-32.9%)

FoodSubsidy

2,87,194

1,97,350

-89,844(-31.3%)

TotalFertilizerSubsidy

2,25,222

1,75,103

-50,119(-22.3%)

PMKisan

60,000

60,000

-

PMFasalBimaYojana

12,376

13,625

1,249(10.1%)

CreditSubsidy

22,000

23,000

1,000(4.5%)

DepartmentofFisheries,AnimalHusbandryandDairying

4,729

6,577

1,847(39.1%)

DevelopmentExpenditureunderDepartmentofAgricultureandFarmersWelfare*

12,250

15,176

2,926(23.9%)

ExpenditureonAgricultureResearchandEducation

8,659

9,504

845(9.8%)

PMAwasYojana(Rural)

48,422

54,487

6,065(12.5%)

M/oRailways

1,62,312

2,41,268

78,956(48.6%)

M/oRoadTransportandHighways

2,17,027

2,70,435

53,408(24.6%)

M/oSkillDevelopmentandEntrepreneurship

1,902

3,517

1,616(85%)

PMKusum

1,325

1,996

671(50.7%)

D/oWaterResources,RiverDevelopmentandGangaRejuvenation

14,000

20,055

6,055(43.2%)

JalJeevanMission/NationalRuralDrinkingWaterMission

55,000

70,000

15,000(27.3%)

*ItincludesschemeslikeRKVY,NaionalMissiononNaturalfarming,AgricultureInfrastructureFund,NaionalBeekeepingHoneyMission,KrishionnaiYojanaetc.

Source:UnionBudget,2023-24

accountofbuildingnewroads(particularlyrural)andbridges.TheFinanceMinisterhasbudgetedacapitaloutlayofRs.2.70lakhcroretotheministrywhichisthehighesteveroutlayin2023-24againstRs.2.17lakhcrorein2022-23(RE).Thus,indicatinggovernments'focusonpromoting'GatiShakti'.Thiswillnotonlyimprovelastmileconnectivitybutonlyhelpinreducinghighlogisticscostwhichtypicallyimpactsthecompetitivenessofdomesticproductsintheinternationalmarket.Itiscriticaltohighlightthatlogisticsandsupplychaincostsaccountforaround12percentoftheGrossDomesticProduct(GDP)inIndiaatpresent.Thisismuchhigherwhencomparedtotheglobalaverageof8percent

Onthedevelopmentexpenditurefront,theunion

budgetFY2023-24hasobservedamajorpushtothe

infrastructureinvestmentincludingroads,railways,

andruralhousing.Biggestjumpinbudgetary

allocationsisobservedtowardsIndianRailways.

CapitaloutlayofMinistryofRailwaysisprovisioned

atRs.2.41lakhcroreinFY2023-24,about9times

higherthantheamountintheFY2013-14andan

increaseof48.6percentovertherevisedestimatein

FY2022-23(Rs.1.62lakhcrore).Thefundswillmostly

bespentoncommerciallines,buildingtracks,new

coaches,electrification,anddevelopingfacilities

atstations.Nextcriticaldevelopmentexpenditureis

towardsMinistryofRoadTransportandHighwayson

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(Gulati&Juneja,2023).

Toprovideasharperfocustotheobjectiveof'reachingthelastmile,'thefinanceministerhasincreasedcapitaloutlayundertheJalJeevanMission(JJM)by27.3percent.Theschemeaimstoprovidefunctionalhouseholdtapconnectiontoeveryruralhousehold.AnoutlayofRs.70,000crorehasbeenearmarkedfortheprogrammeFY2023-24(BE),againstRs.55,000croreintheFY2022-23(RE).

AnotherkeyfocusareaoftheunionbudgetFY2023-24isthehousingsector.TheoveralloutlaytowardsPMAwasYojana(Gramin)hasincreasedtoRs.54,487croreinFY2023-24fromRs.20,000croreprovisionedinFY2022-23(BE),netincreaseof172.4percent!AscomparedtotheFY2022-23revisedestimate(actualspending)whichwasRs.48,422crore,theallocationtowardstheschemeinFY2023-24witnessedahikeof12.5percent.Theschemewaslaunchedin2016toprovidehousingforallbutitalsoensurespermanentassetcreationforruralhouseholds,dignityoflifewhilecreatingmorejobsinruralIndia.Thismarksarealigningsubsidytowardsruralinfrastructuredevelopment(Gulati&Juneja2023)

TheFinanceMinisteralsointroduced4.0versionofPradhanMantriKaushalVikas(PMVIKAS)Yojana,whichaimstoskilllakhsofyouthwithinthenextthreeyears.Outlaytowardson-the-jobtraining,industrypartnership,andalignmentofcourseswithneedsofindustryetc.hasbeenincreasedby85percentfromRs.1902crore(RE)inFY2022-23toRs.3517crore(BE)inFY2023-24Theschemetargetstocovernewagecoursesforindustry4.0likecoding,AI,robotics,mechatronics,IOT,3Dprinting,drones,andsoftskills.FMalsoannouncedthattoskillyouthforinternationalopportunities,30SkillIndiaInternationalCentreswillbesetupacrossdifferentstates(MinistryofFinance,2023).

Besidesthis,prioritisinggreengrowth,theFinanceMinisterhasallocatedasumofRs.10,222croretowardstheRenewableEnergysector,recordingan

increaseof48percentoverlastyear'sbudgetallocationofRs.6,900crore(BE).Furthermore,asumofRs.1996crorewasallocatedforsolarenergyunderthePradhanMantriKisanUrjaSurakshaEvamUtthaanMahabhiyan(PM-KUSUM)scheme,launchedin2019,upfromRs.1325croreinFY2022-23(RE).

Furthertopromoteinnovationsandtechnologiesinagriculturesector,theUnionBudget2023-24envisagesdevelopmentoftheAgricultureAcceleratorFundtoencourageagri-startupsinruralareas.Inkeepingwithhighergrowthratesinthelivestockandfisheries,enhancedallocationsforthesetwosectorsweremadein2023-24.Notableisthesub-schemeofPMMatsyaSampadaYojana

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whichwaslaunchedwithaninvestmentofRs.6,000croretosupportfishermen,fishvendors,andMSMEs.

Budget2023-24alsomadeprovisionsfordevelopingalternativestochemicalfertilisersandgivingaboosttonaturalandorganicfarming.Settingupdigitalpublicinfrastructureasanopen-source,open-standardandinteroperablepublicgoodfortheagriculturespaceisalsoproposedinthisbudget.Thiswillenableinclusive,farmer-centricsolutionsthroughrelevantinformationservicesforcropplanningandhealth,improvedaccesstofarminputs,credit,andinsurance,helpforcropestimation,marketintelligenceetc.Theseinitiativesthougharethestepsintherightdirectionbutareatanascentstageandwillonlymakeamarginaldifferenceasweareyettoseehowmuchfundsareactuallyallocatedundertheseinitiatives/schemes.

OneofthecriticalquestionsthatariseswithrespecttoagriculturetransformationishowmuchinvestmentthecountrymakesinagricultureResearchandDevelopment(R&D).AccordingtotherecentestimatesoftheComptrollerandAuditorGeneral(CAG),theCentreandstatescombinedspentlessthanhalfofthisbenchmarkonagri-R&Dinthepre-COVIDyear,FY2019-20(Gulati,2023).Thisistoomeagreachange!Thus,theneedistodoubleupinvestmentinAgricultureResearch,DevelopmentandEducationforcreatingproductive,resilient,inclusive,andcompetitiveagricultureinIndia.

References

UnionBudget(2023,February01).LastfullUnionBudgetbefore2024LokSabhaelectionsticks.TheTimesofIndia.

Gulati,A(2023,February02).Budget2023:FMSitharamandoeswelltoholdbackonrevdis-butthereislittleforfarmerstocelebrate.TheIndianExpress.

Gulati,A.,&Juneja,R.(2023,February06).Fromdolestodevelopment.TheIndianExpress.

MinistryofFinance(2023).BudgetataGlance2023-24.Delhi:BudgetDivision,MinistryofFinance,GovernmentofIndia.

MinistryofFinance(2023,February01).HighlightsoftheUnionBudget2023-24.Retrievedfrom

.in:

.in/PressReleasePage.aspx?PRI

D=1895315

Sood,S.,Padhi,I.,Suresh,A.K.,Seth,B.,&Behera,S.R.(2023).UnionBudget2023-24:AnAssessment.Mumbai:RBIBulletin,ReserveBankofIndia.

AWayForwardtoDoubleFarmers'Income

RanjanaRoyandAshokGulati

ThePrimeMinisterofIndia,ShriNarendraModi,madeanambitioustargettodoublefarmers'incomesby2022-23,atakisan(farmer)rallyinBareillyon28February2016.ThestatementwasfollowedbyformingacommitteeforDoublingFarmers'Income(DFI)underthechairmanshipofAshokDalwaiwithanobjectivetoformulateaplanofactiontoachievethisgoal(MoA&FW,2017).Thecommitteeprepared14volumesproposingstrategiesonalmosteveryaspectofagriculture.Asperthecommittee,thePM'stargetwastodoubletherealincomesoffarmersinsevenyears,i.e.by2022-23whenIndiasetsoutforAmritkaalover2015-16incomelevel.ToachievetheDFItarget,therequiredgrowthrateatall-Indialevelwasestimatedtobe10.4percent.Aswehavecompletedthetargetyear,itisrighttimetorevisitthatdreamtoseeifthegoalisachievedandhowbestitcanbefulfilled.

Theonlyofficialdatabaseavailabletoestimatefarmers'incomeistheSituationAssessmentSurvey(SAS)ofagriculturalhouseholdsreleasedbyMinistryofStatisticsandProgrammeImplementation(MoSPI).Thelatestdataavailableisfortheyear2018-19whichwasreleasedinSeptember,2021.Thisdatawasearlieravailableforonlytwoyears2002-03and2012-13.AgriculturalHouseholds'income1increasedbothinnominalandrealtermsfrom2002-

03to2018-19.In2002-03,anaverageIndianfarminghouseholdearnedaboutRs.2115(Rs.6830in2020-

21prices),whichincreasedtoRs.10,218in2018-19(Rs.11,572in2020-21prices).Innominaltermthecompoundannualgrowthrate(CAGR)turnsouttobe10.3percentperannumbetween2002-03and2018-19(Figure1).Buttheactualsituationofthefarmerscanbecapturedfromtherealincomegrowth.Evenso,thechoiceofdeflatorinestimatingrealincomeiscritical.Ifnominalincomesaredeflatedbyusingconsumerpriceindexforagriculturallabour(CPI-AL),whichshouldbetherationalchoiceandalsousedbyDalwaiCommitteetoforecastrequiredgrowthratetodoublefarmers'income,thentheCAGRturnsouttobejust3.4percent(2002-03to2018-19),andifoneusesWPI(wholesalepriceindexofallcommodities),theCAGRinrealincomesturnsouttobe5.3percent.However,ifweuseGDPdeflator,growthrateofincometurnsouttobe4percentinthisperiod.Thisvastdifference,from3.4percentto5.3percent,isentirelyduetothechoiceofthedeflator.

Theagriculturesectoremploys45.5percentoftheworkforce(PLFS,2021-22)andunlesstheincomesoffarmersareaugmented,asustainedoverallGDPgrowthcannotbeachieved.Therefore,thegovt.needstoadoptsomegroundbreakingpoliciesotherwiseDFIwillremainadistantdream.

1Thedeinitionof'farmer'inallthesurveysvarysomewhatfromeachother.AsperSAS2018-19,agriculturalhouseholdsarethosewhoreceivevalueofproducemorethanRs.4000fromagriculturalactivities(Rs.3000inSAS2012-13)andhaveatleastonememberself-employedinagricultureinthelas365days.However,inSAS2002-03,afarmerwasdeinedasapersonwhooperatessomeareaoflandandengagedinagriculturalactivitiesinthelast365days.

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IncomeGrowth(%)

11.8

4.9

3.5

8.0

6.1

3.0

10.3

5.3

3.4

Figure1:Farmer’sIncomeGrowth

14.0

12.0

10.0

8.0

6.0

4.1

4.0

2.0

0.0

2002-03to2018-19

CAGRofNorminalIncome

CAGRofIncome(usingCPI)

CAGRofIncome

CAGRofIncome

(%)(usingWPI)

(%)(GDPDelator)

2012-13to2018-19

2002-03to2012-13

4.1

4.1

Source:CalculatedbyauthorsusingSASincomedata,MoSPIandRBIdataforGDPde?ator

Note:2018-19income?guresincludeincomefromrentalincome.Thisinformaionwasnotcollectedintheearlierrounds.

RealIncomeGrowthin?gure1iscalculatedusingWPI(2011-12=100)CPI-AL(2020-21=100),andGDPDe?ator2011-12=100.

Secondly,farmersneedtomovefromlowvaluecropslikecerealstohighvalueitemslikepoultry,fishery,dairy,andhorticulture.ThelatestSASdatarevealsanotherinterestingfact.Theshareofincomefromcultivationhasfallenovertheyearsfrom46percentin2002-03to38percentin2018-19.Inthesameperiodincomefromlivestocksector(includesdairy,poultry/duckery,piggery,fishery)hasincreasedquitenoticeablyfrom4percentto16percent.Inthegrossvalueofoutputfromagriculture,forestry,andfisheries,cropsectorstillconstitutesthehighestshare(Figure2).Intermsofsub-sectorwisegrowthinrealvalueofoutput,fisherysectorgrewat

Budget2023-24andFamersIncome

Inthefollowingsection,wehaveanalyzedthe

necessarypolicesandbudgetaryallocationthatare

directedtoboostfarmers'income.

Firstly,farmers'returncanbemaximizedby

increasingproductivitythroughbetterseeds,

irrigationandoptimumuseoffertilizerskeepingin

mindtheenvironmentaloutcomes.Thisdependson

howmuchthegovt.allocatesonagricultural

researchanddevelopment.Thebudgetforthe

DepartmentofAgricultureResearchandEducation

(DARE)hasbeenprovisionedatRs.9,504crore,up

thefastestrate(6.9percent)followedbylivestock(5.3percent),pulses(5.0percent),andhorticulture(4.8percent)intheperiodof2005-06to2020-21(Figure-3).Withinlivestock,poultrymeat(10.6percent)isgrowingatthehighestratefollowedbymeatgroup(7.6percent),eggs(6.21percent),andmilkgroup(5.56percent)(2012-13to2020-21).

byabout9.7percentovertheREofRs.8,659crorein

FY2022-23(UnionBudget,2023-24).Departmentof

AgricultureandFarmers'WelfarehasprovisionedRs.

7,066croreforKrishionnatiYojanaandRs.7,150crore

forRashtriyaKrishiVikasYojana.Theseprovisions

althoughhelpfulbutnotadequateenoughto

achieveclimateresilientagriculture.Thereisaneed

todoubletheallocationtowardsagri-R&Dto

protectfarmersfromlossesduetoweathervagaries

andtoincreasetheirincomewithincreased

productivityandhighresourceuseefficiency.

9

Figure2:CompositionofGVOfromAgricultureandAlliedActivities,TE2020-21

Fishing&

Aquaculture

7%

Forestry

8%

Livestock

29%

Crops

56%

Fishery

Livestock

Pulses

Horticulture

%Growth

6.9

5.3

5.0

4.8

4.5

3.0

2.6

2.6

Fiber

Sugar

Oilseeds

Cereals

Figure3:RealGVOgrowth(%)2005-06to2020-21

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Source:NationalAccountsStatistics,MosPI

Allocationtodepartmentoffisheriesforthebudget2023-24hasincreasedtoRs.2,248crorefromarevisedestimate(RE)ofRs.1,624crorein2022-23withconsiderableincreaseinexpenditureoncentrallysponsoredschemesunderbluerevolution.Similarly,thenetallocationtodepartmentofanimalhusbandryanddairyinghasincreasedfromarevisedestimate(RE)ofRs.3105crorein2022-23toabudgetedestimate(BE)ofRs.4327.85crorein2023-24withincreaseinprovisionforcentrallysponsoredschemeslikeDairyDevelopment,NationalLivestockMission,DairyingthroughCooperativesetc.

Thesearewelcomingsteps,butthefast-growingsectorsneedsmoreattentionfromthegovernment.Commercialpoultryisasustainablechoiceforincomeofalargenumberoffarminghouseholdsin

plantingmaterial.AnoutlayofRs.2,200crorehasbeenassignedfortheprogramme(PIB,2023).However,moredevotionfromgovernment'ssideisneededtocorrectinefficienciesinthehorticulturevaluechain.Tosubstantiateanyincreaseddemandofprocessedhorticulturecommodities,thereisaneedtoenhancetheprocessingcapacityinthemajorproducingstatessothatpost-harvestlossisminimum.Thereisaneedforgreaterawarenessofusageofprocessedformslikepotatoflakes,dehydratedonions,tomatopuree,andbananabiscuitsetc.amongIndianconsumers.Thedemandoftheseprocesseditemscanbeincreased