New Delhi, Feb 6 : The agriculture sector plays a crucial role in the Indian economy as over 47 per cent of the country’s population is dependent on farming for their livelihood. A robust growth in the agricultural sector boosts the incomes of the rural population which accounts for close to 40 per cent of the demand for industrial goods. A high level of agricultural production also keeps inflation in check.

On the other hand, a decline in farm output leads to rising food prices that trigger a surge in inflation resulting in destabilising the economy and hurting overall growth.  The agricultural sector in the country has been a high-priority area for the government and has become increasingly resilient over the years to grow at a steady pace. Climate change, though, has emerged as a formidable challenge with the erratic monsoon adversely hitting crops and bringing down the growth rate in the country’s agricultural output from 3.5 per cent to a mere 1.6 per cent in the July-September quarter of 2023.  The Interim Budget presented by Finance Minister Nirmala Sitharaman gives a major thrust to stepping up value addition in the agricultural sector and boosting farmers’ incomes.  The interim budget’s aim to achieve ‘atmanirbharta’ (self-reliance) in oilseeds such as mustard, groundnut, sesame, soybean, and sunflower can turn out to be a game-changer in boosting the agricultural sector and driving up the overall growth rate of the economy. 

The Finance Minister said in her speech that investments lined up for the sector will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition, and crop insurance.  India imports around two-thirds of its requirement of edible oils which entails an outgo of a whopping Rs 1.38 lakh crore in precious foreign exchange. The self-reliance in oilseeds would help to conserve this drain and also help to keep the country’s trade deficit under control which would pave the way for a stronger rupee.  The budget allocates Rs 1.27 lakh crore for various schemes to be implemented in the agricultural sector. In addition, Rs 1.64 lakh crore has been allocated for the subsidy to provide fertilisers at a low cost to farmers. 

Mentioning the steps being taken to ensure efficient fertiliser use, the Finance Minister mentioned the successful adoption of Nano Urea, and the policy to expand this Nano DAP for various crops in all agro-climatic zones.