Post Budget Reactions: Agri stakeholders laud the efforts to empower farmers

New Delhi: In their post budget 2024 reactions, the agriculture and allied industry leaders appreciated the announcements made by the union finance minister, Nirmala Sitharaman on February 01, 2024.

Raju Kapoor, Director, Industry & Public Affairs, FMC India said, “The interim budget balances the fiscal prudence with growth. It has outlined various proactive measures for the agri industry at large. The allocation of a Rupees 1 lakh crore corpus for a 50-year interest-free loan to private sector is poised to fuel R&D and innovation in India fostering a conducive environment for advancements. The continuity of the ‘PM Kisan Sampada Yojana’ will make available requisite investment at the hands of farmers to promote use of newer technologies in the form of advanced agri-inputs.”

“The emphasis on empowering women self-help groups with significant credit linkages will benefit in rural development and we resonate very well with it. The focus on minimizing post-harvest losses is crucial, and similarly we appreciate the decision to expand nano DAP usage across all agro-climatic conditions, which will undoubtedly catalyze the growth of drone applications in agriculture and improve fertilizer use efficiency. Investments to minimize the post-harvest infrastructure is a welcome step,” added Kapoor.

Simon Wiebusch, President of Bayer South Asia and Vice Chairman, MD & CEO of Bayer CropScience, said “The Finance Minister’s announcement, identifying women and farmers as key focus groups for powering India’s growth, has set the stage for policies that can substantially boost development in rural areas. I am also happy to see the government’s continued push to improve farmer incomes. Policies like the PM Kisan Sampada Yojana and the PM Fasal Bima Yojana, along with measures to promote private and public investment in post-harvest activities including modern storage, efficient supply chains, and marketing and branding will herald a transformative era in Agriculture.”

“While the budget’s focus on advancing sustainability initiatives across sectors, improving farmer incomes, and women empowerment will help fulfil the Prime Minister’s vision of a ‘Viksit Bharat’, its proactive approach on women’s health is a crucial step towards ensuring preventive healthcare for a large section of the population,” added Wiebusch.

Dr KC Ravi, Chief Sustainability Officer, Syngenta India Pvt Ltd & Chairman, CropLife India said, “The robust physical-digital-social infrastructure developed in the last decade has given the economy a good foundation for a Viksit Bharat by 2047. Digital infrastructure and infusion of technology is imperative to not only sustain the momentum but also to take the agriculture growth story to its logical conclusion. The focus on self-reliance in edible oils and investment in post-harvest activities are some of the measures that can make this happen. The full Budget has to address some pending reforms needed to further boost the impressive growth of India’s agrochemical sector. An enabling predictable science based policy environment is absolutely essential to provide farmers cutting edge technologies to fight against climate threats besides the ever increasing complex pests and diseases threatening crop yields.”

“It is important that the industry is encouraged to invest in R&D for bringing newer molecules and technologies complemented by AI and digital technologies. Rationalising GST on agrochemicals to 12% (from current 16%) and allocating sufficient budgetary resources to introduce performance-linked incentives (PLI) will go a long way in consolidating and strengthening the agrochemical sector. Strategic policy decisions will propel India towards this growth, ultimately leading to a significant positive impact on further enhancing farmers’ income. These would give a decisive push for making Atmanirbhar Bharat,” added Dr Ravi.

Ajai Rana, Chairman, Federation of Seed Industry of India (FSII), CEO and MD of Savannah Seeds said: “Having steered the economy to a glorious path in last one decade with progressive reforms in agriculture, it is heartening to see the Finance Minister spell out the vision for making India Viksit by 2047 that relies on continued momentum on advances made so far. The Seed Industry is particularly happy to see the emphasis given on oilseeds and the imperative to make the sector self-reliant in this interim Budget. We welcome Finance Minister’s announcement on Atmanirbhar Oilseeds Abhiyan with a focused strategy on achieving self-reliance in oilseeds, such as mustard, groundnut, soyabean, sesame and sunflower. This is a timely and effective step that shall augment our aspirations to become self-reliant in this critical sector. As India continues to make rapid strides towards being a world leader, it is vital that we embrace globally approved technologies.”

“The industry applauds Government’s focus on high yielding varieties of seeds, adoption of modern farming techniques, market linkages, procurement, value addition and crop insurance. The Rs 1 lakh crore R&D corpus allocation for 50 years with low or nil interest is a visionary move guided by Hon PM’s focus on Jai Jawan, Jai Kisan, Jai Vigya & Jai Anusandhan. The focus on reform, perform and transform has been evident in the Government’s work in last one decade. We sincerely hope in the Full Budget after the new government, we shall see the spirit reflected in aspirations of seeds industry by way of GST rationalizations on seeds raw materials and services, deductions on R&D expenses, progressive environment for enabling more investments in the sector,” added Rana.

Sandeep Sabharwal, CEO of SLCM Group (Sohan Lal Commodity Management) said: “The impetus given to post-harvest activities in the interim budget is a welcome step. It is a positive move to encourage private-public partnerships and address the diverse ambits of post-harvest agricultural logistics, including storage, supply chain as well as primary and secondary storage. We also endorse the government’s renewed focus on women empowerment to transform India’s rural socio-economic landscape. In addition to the 1 crore women already coming under the purview of Lakhpati Didis, the government now intends to incorporate 3 crore new Lakhpati Didis under the scheme, and we hope it transforms several lives in the Indian agri space across the rural parts of the country.”

Ashvin Patil, Founder and Director of Biofuels Junction said, “A significant challenge addressed in the budget is the large-scale collection of stubble, particularly the capital-intensive process involving balers. Annually, India witnesses the generation of approximately 500 million tonnes of agricultural residue, offering a substantial business opportunity estimated at around Rs 50,000 crore. Unfortunately, nearly 200 million tonnes of this resource remain unused, often leading to environmentally detrimental burning practices.  This underscores the untapped potential for converting agricultural residues into biofuels.”

“The recent budget announcement by the Finance Minister emphasizing measures such as financial assistance for biomass aggregation machinery outlines a crucial initiative to address this issue and unlock the economic and environmental benefits of converting agricultural residues into biofuels. The focus on transforming agri- waste into biofuels not only contributes to sustainable waste management but also aligns with the larger vision of promoting green growth and reducing carbon emissions in the country. It will also help farmers generate income on agri-waste and boost and support the rural economy and communities and promote rural entrepreneurship,” Patil added.

Vasu Naren, Chairman & Managing Director, Sona Machinery, said: “Through strategic initiatives like the Pradhan Mantri Kisan Sampada Yojana, which has already empowered 38 lakh farmers and catalyzed the creation of 10 lakh jobs, the aim will be to unlock the true potential of our agricultural produce. Furthermore, the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana stands as a beacon of support, extending assistance to 2.4 lakh Self-Help Groups and sixty thousand individuals through crucial credit linkages. These initiatives not only bolster farmers’ income but also foster entrepreneurship and inclusivity in the sector. Moreover, the commitment to reducing post-harvest losses and augmenting productivity remains unwavering, with a suite of complementary schemes poised to drive tangible outcomes.”

“By synergizing these efforts, we envisage a future where our farmers thrive, our agricultural landscape flourishes, and our nation reaps the dividends of sustainable growth. Building on the initiative announced in 2022, the Atmanirbhar Oil Seeds Abhiyan will be a cornerstone of our agricultural strategy. A comprehensive approach will be formulated to achieve ‘Atmanirbharta’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. This holistic strategy will encompass research for high-yielding varieties, widespread adoption of modern farming techniques, robust market linkages, efficient procurement mechanisms, value addition initiatives, and comprehensive crop insurance coverage,” Naren added further.

Sanjay Goenka, Managing Director and CEO, 3F Oil Palm, said, ‘The Union Budget 2024 further builds on the push for edible oils self-sufficiency through its “Atma Nirbhar” strategy and expanded adoption of nano DAP in all agro-climatic zones. Investing in our Annadata’s (farmers’) future is investing in India’s future itself. While the timely push for edible oil production of mustard, groundnut, sesame, soybean, and sunflower oils is welcome, the scope should be extended to oil palm as well given its higher productivity. The vision for research, modern farming techniques, and infrastructure investment aligns perfectly with our company’s mission to empower farmers and unlock the sector’s potential in palm oil production and processing. We are enthusiastic to empower our farmers and be a part of the journey towards a truly self-reliant India.’

Dr Sat Kumar Tomar, Founder & CEO, Satyukt Analytics said: “The Budget 2024 has resonated positively with the agriculture sector, aligning with our expectations for a technologically driven, sustainable farming approach. While the integration of IoT devices for precision farming wasn’t explicitly mentioned, the focus on farmers is evident. Crop insurance coverage for 4 crore farmers under the PM Fasal Bima Yojana ensures risk mitigation. Additionally, the announcement of rooftop solarisation benefiting 1 crore households aligns with sustainable farming goals. The commitment to Direct financial assistance for 11.8 crore farmers under the PM Kisan Samman Yojana reflects a dedication to enhancing the 3Ps of agricultural business: productivity, predictability, and profitability. However, the industry was expecting more industry-centric announcements in this budget to further catalyze growth and innovation in the agricultural sector.”

“The expansion of Nano-DAP application across all agro-climatic zones promises enhanced agricultural yields and sustainable farming practices. The Atmanirbhar Oilseeds Abhiyaan signifies a strategic move towards self-reliance in oilseed production, ensuring food security and reducing dependence on imports. The comprehensive programme for dairy development is a vital step towards empowering our farmers and strengthening the dairy processing and dairy husbandry. With the heightened implementation of the Pradhan Mantri Matsaya Sampada Yojana (PMMSY), our aquaculture sector is set to thrive, contributing to increased productivity, doubled exports, and a surge in employment opportunities. This visionary approach underscores our commitment to a resilient and self-sufficient future for our nation,” said Dr Chandra Mohan Mehta, Associate Dean, LPU.