From the government’s perspective, this could have well-meant beginning the new year with a bang. On 1 January, when the Union Cabinet met, it gave its green signal to a clutch of decisions – mostly farming sector-centric. The major decision pertains to allowing the continuation of the ‘Pradhan Mantri Fasal Bima Yojna’ and Restructured Weather Based Crop Insurance Scheme till 2025-26, with an outlay of about Rs70,000 crore. The scheme provisions for risk coverage of crops from non-preventable natural calamities. In the same meeting, the Cabinet also approved the extension of the one-time special package on diammonium phosphate (DAP) till 31 December 2025. The aim is to ensure that DAP remains affordable for farmers.
Another critical decision taken during the cabinet meeting was approval to an MoU on trade of Non-Basmati White Rice (NBWR) between India and Indonesia. This would facilitate trading of 1 million tonnes of non-basmati white rice annually, based on production and international prices and will be valid for next four years. “(The government’s) first decision of the New Near is dedicated to crores of farmer brothers and sisters of our country,” conveyed a formal statement of Prime Minister Narendra Modi, later posted on X. “We have approved increasing the allocation for the crop insurance scheme. This will provide more security to farmers’ crops and will also mitigate their concerns about any damage”.
“This year is dedicated to farmers,” maintained a beaming Shivraj Singh Chouhan, Union minister for agriculture later, while explaining the significance of three major decisions, when it met for the first time in the new year. And just three days after the Cabinet meeting, Chouhan called for a review parley of agriculture schemes implementation with the agriculture ministers and senior officials of the states and UTs, where he reiterated: “In the new year, with new resolutions, we will take forward the work of agricultural development and farmer welfare at a fast pace.” The meeting saw the review of progress made in key schemes like PM-KISAN, Pradhan Mantri Fasal Bima Yojana, DAP fertiliser subsidy, Kisan Credit Card and Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASA).
In the new year, with new resolutions, we will take forward the work of agricultural development and farmer welfare at a fast pace
If the production jump has to be seen as the critical parameter to judge agriculture’s growth, then the current season is in the midst of another modest upturn. The agriculture sector growth, as several government functionaries have pointed out, is going to be in the range of 3.5-4 per cent at the end of the present fiscal. This would mark a strong bounce-back from almost a flat growth level of 1.4 per cent in the last fiscal. According to the initial estimates (first advance estimates released in November for kharif crop), the foodgrain production, backed by favourable monsoon, is estimated to touch a record high of 164.7 million tonnes for 2024-25 crop year. The steady plantation in the winter season has further supported the assumption that 2025 will be a record production year for foodgrains.
Positive measures
Going by the buzz within the agriculture circles, there is a possibility of marked emphasis on measures for reducing production costs, promotion of micro-irrigation, farm mechanisation and technology adoption in terms of strategic stance. The Union budget could also respond to some of the demands made by the agriculture sector stakeholders in the pre-budget meeting, which includes long-term low interest credit for farmers, doubling the PM-KISAN income support, reduction in taxes on equipment used in the farming sector, etc.
But, more than the possible support from the annual budgetary package, action in the agriculture sector seems to be guaranteed owing to the spate of recent decisions, which will be pressed to the implementation stage. These include putting the National Mission on Edible Oils in the action. Targeting to make India self-reliant in edible oil production in seven years period (2024-25 to 2030-31), the mission was approved last October, with a corpus of over Rs10,000 crore. Just a month before edible oil mission approval, the government had announced seven new agriculture schemes related to crop science, natural resources, digital agriculture (a dedicated mission has been approved), livestock health, etc. The total corpus set up for these schemes is close to Rs14,000 crore.
But, while there seems to be positive tidings for the agriculture sector in the new year, the fresh scenes of farmers' unrest at Punjab border over MSP guarantee and other demands certainly call for urgent attention and a permanent solution. The frequent stirs and the resultant debate (whether it’s genuine or created by vested interests) has stretched for too long and is simply leaving a bad taste in the mouth. Will the issue get resolved in 2025? This is a big question in the mind of every stakeholder in the farming sector as well as observers.