Context:

The 2023-24 budget has failed to address the twin crisis in agriculture in India, which includes food and fertilizer shortages.

Overview of Indian Agriculture Budget 2023

• Twin crisis in food and fertilizer prices globally and domestically.
• Union government’s objective to protect farmers and consumers and raise net income from cultivation.

Expectations from the Budget:

• It must have protected farmers and consumers from the food and fertilizer crises;
• It must have taken steps to raise net incomes from cultivation.

Disappointing Allocations

• Fertilizer subsidies have also been cut from ₹2.25 lakh crore to ₹1.75 lakh crore. 
• Allocation for the Mahatma Gandhi National Rural Employment Guarantee Scheme has been cut from ₹73,000 crore in 2022-23 (BE) to ₹60,000 crore in 2023-24 (BE).
• No relief for farmers in terms of compensatory rise in output prices
• No scientific validation for the promotion of natural farming.

Capital Expenditure

• Utter neglect in capital investment in agriculture
• Requirement of capital investment in irrigation and markets (mandis)
• Total capex of government in 2022-23 was ₹7.5 lakh crore
• Allocation under capital accounts of crop husbandry, animal husbandry, dairy and fisheries was ₹119 crore in 2022-23
• Expected to fall to ₹84.3 crore in 2023-24
• Budgeted allocation for irrigation and flood control was ₹350 crore in 2022-23 and expected to fall to ₹325 crore in 2023-24
• Agriculture Infrastructure Fund (AIF)

Lack of Capital Expenditure

• Neglect in allocation for capital investment in agriculture
• Allocations for various schemes not listed in Budget documents
• Fragmented allocations thinly spread across departments with limited impact on agriculture

Conclusion

• Budget fails to address pressing problems in Indian agriculture
• Lack of scientific and grounded vision in quantum and direction of allocations.

News Source: The Hindu