From farm to fork: Budget 2024 seizes the moment

The 2024 Union Budget has sown the seeds for a stronger Food & FMCG sector with its dual focus on agriculture and putting more disposable income in the hands of the consumer. This budget has gone beyond numbers with its vision for the entire agriculture ecosystem from seeds to supply chains, a vision for a more robust and resilient future for Indian agriculture, and by extension, the entire Food & FMCG sector. The Government’s commitment can be gauged from the significant financial outlay of ₹1.52 lakh crore for agriculture and allied activities. This is a clear message that the government recognises the vital role agriculture plays in our economy and is ready to invest in its future.

The budget this year has numerous initiatives that should bring cheer to the farmers facing the impact of global warming on the environment. There's a strong emphasis on boosting agricultural productivity and making farming more resilient to the challenges of climate change. The introduction of 109 high-yielding and climate-resilient varieties of 32 field and horticultural crops will directly benefit farmers and contribute to increased food production.

The push for natural farming, with a target of initiating no less than 1 crore farmers into this practice, signifies a paradigm shift towards an environment-friendly and sustainable approach to agriculture. Supported by certification, branding, and 10,000 new bio-input resource centres, this will resonate well with environmentally conscious consumers, especially in the urban areas and provide a ready market for these food products.

Another highlight is the continuing efforts to ensure self-reliance in pulses and oilseeds through strategic initiatives to enhance production, storage, and marketing. The aim is to achieve 'atmanirbharta' (self-reliance) in mustard, groundnut, sesame, soybean, and sunflower.

An increase in production will also require to be supported by a strong supply chain. The support to Farmer-Producer Organisations, cooperatives, and start-ups will help to upgrade and improve the collection, storage, and marketing of produce, reducing wastage, optimising the agricultural value chain, and boosting efficiency and competitiveness. The budget envisages the establishment of large-scale vegetable production clusters near major consumption centres, a step which will improve the availability and affordability of fresh produce. This is a win-win situation for both farmers and consumers.

The emphasis on rural development to create prosperous rural communities is another key takeaway from this budget. Initiatives like the Digital Public Infrastructure (DPI) for agriculture, with a focus on creating farmer and land registries, will bring much-needed transparency and efficiency to the sector. The DPI initiative, starting with a digital crop survey for Kharif in 400 districts, will stabilise rural economies and ensure millions of farmers – a targeted 6 crore – and their lands are registered, facilitating the issuance of Jan Samarth-based Kisan Credit Cards. This will empower farmers with easier access to credit, further fuelling rural economic growth.

The Union Finance Minister has delivered a powerful message in the budget - the government is committed to the growth and prosperity of the Food & FMCG sector. The coming years will be crucial as these initiatives are implemented and as key stakeholders, we must support, collaborate and work with the government to ensure efficient execution and reap the rewards!