MOFS Report

ABOUT THE SECTOR:
OVERVIEW OF INDIAN AGRICULTURE SECTOR

 Agriculture is the leading sector in India, contributing over 16% to the country's GDP.
 Primary source of livelihood for ~55% of India's population.
 The country's vast lands and livestock contribute significantly to agriculture, with
food crops, grains, cereals, and millets being the most produced.
 India is a key producer of spices, rice, pulses, and milk globally.
 Farming livestock is a significant source of income and a key contributor to the
country's dairy market.
 Second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane,
wheat, rice, cotton, and sugar.
 Second-largest agricultural land in the world, generating employment for about half of
the population.
MARKET SIZE:
According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion
by 2025.
EXPORT TRENDS:
India’s agriculture sector primarily exports Agri & allied products, marine products,
plantation, and textile & allied products. Agri & allied products exports were valued at US$
37.3 billion, recording a growth of 17% over 2020-21.
Interpretation:
 In April-January 2024, the overall value of export of agricultural products stood at
US$ 38.65 billion.
 In 2022-23, the agricultural exports from India stood at US$ 52.50 billion.
 During 2021-22, the country recorded US$ 50.2 billion in total agriculture exports
with a 20% increase from US$ 41.3 billion in 2020-21.
UNION BUDGET 2024-25 FOR THE AGRICULTURAL SECTORS:
The Union Budget for 2024-25 was presented by Finance Minister Nirmala Sitharaman on 1
February 2024. Start-ups for agricultural and rural enterprises will be funded by NABARD.
Under the PM-KISAN initiative, 11.8 crore farmers will receive direct financial help.
Furthermore, 4 crore farmers would receive crop insurance coverage thanks to the PM Fasal
Bima Yojana.
Highlights of Union Budget 2023-24 in Agriculture Sector
 Agri-start-ups by young entrepreneurs will be supported by the launch of an

Agriculture Accelerator Fund.
 The agricultural credit will be raised to Rs.20 trillion, with an emphasis on dairy,
fisheries, and animal husbandry.
 A new sub-scheme of the PM Matsya Sampada Yojana will be introduced with a

targeted investment of Rs.6,000 crore to further enable the activities of fish vendors,
fishermen, and micro- and small businesses, increase the efficiency of the value chain,
and broaden the market.
 The Center will empower 10 million farmers to switch to natural farming.
 To assist farmers in storing their produce and obtaining fair prices through timely
sales, a sizable decentralised storage capacity will be set up.
 A Digital Public Infrastructure for Agriculture will be created as an open source, open
standard, and interconnected general welfare. It will make it possible for solutions that
are inclusive of farmers and help to increase access to farm inputs, market
intelligence, and support for start-ups in the agriculture sector.
 To encourage states and Union Territories to use alternative fertilisers, PM PRANAM
will also be introduced.
 A Rs.2,516 crore investment was made to start computerising 63,000 Primary

Agricultural Credit Societies (PACS).
 The Indian Institute of Millet Research, Hyderabad, will be supported as the Center of
Excellence for Sharing Best Practices, Research, and Technologies at the International
Level in order to make India a global hub for "Shree Anna".
KEY ANNOUNCEMENTS OF 2024-25
1. Approximately Rs 1,27,470 crore budget allocated for agriculture in India's interim

budget 2024 – 25
Interim Union Budget Allocation to Agriculture Ministry allocated of Rs 1,27,469.88 crore to
Ministry of Agriculture. Out of this,
 Department of Agriculture allocated Rs 1,17,528.79 crore.
 Department of Agricultural Research and Education allocated Rs 9,941.09 crore.
Experts praise the budget for supporting agriculture growth and productivity.
2. Rs 20 lakh crore agriculture credit target:

 The agriculture credit target has been raised to Rs 20 lakh crore in the Interim Budget
2024-2025, emphasizing welfare initiatives for farmers.
 Continues allocation for Agriculture Accelerator Fund, established in 2023-24.
 PM Kisan Samman Nidhi remains at Rs 60,000 crore, providing direct financial help
to 11.8 crore marginal and small farmers.
3. Funds allocated for the ongoing implementation of PMFBY:

Pradhan Mantri Fasal Bima Yojana
 Provides security to four crore farmers.
 Protects against unforeseen events like adverse weather.
 Government committed to enhancing crop insurance effectiveness.
 Aims to increase awareness and accessibility in rural areas.
 Stimulates growth in the insurance sector.
4. Integration of 1361 mandis into e-NAM:

 e-NAM is a trading portal for State-run Agricultural Produce Marketing Committees.
 Interim budget plans to integrate 1,361 mandis and increase trading volumes to Rs 3
lakh crore in 2024-2025.
 Aims for more efficient and transparent agricultural market system.
5. Addressing post-harvest losses with public-private partnerships to improve infra and

storage facilities:
 India experiences 5-13% loss of fruits, vegetables, and other crops between harvest
and consumption.
 Annual loss is estimated at Rs 1,52,000 crores.
 Budget emphasizes public-private partnerships for infrastructure and storage
improvement.
 PM-Formalisation of Micro Food Processing Enterprises scheme aims to strengthen
micro-processing sector.
6. Atmanirbhar Oil Seeds Abhiyan for self-sufficiency and food security:

Atmanirbhar Oil Seeds Abhiyan Initiative
 Aims to reduce imports of edible oil, a staple in Indian kitchens.
 Promotes research and development of indigenous oilseeds like groundnut and
mustard.
 Focuses on high-yielding oilseed varieties, modern farming techniques,
procurement mechanisms, market linkages, value addition initiatives, and crop
insurance provisions.
7. Reduce import dependencies with increased adoption of Nano DAP:

 DAP (di-ammonium phosphate), after urea, is the most used fertilizer in India.
 Proposed adoption across all climatic zones.
 Nano DAP is cost-effective, efficient, and domestically manufactured, potentially
reducing import dependence.
8. Comprehensive Dairy Development program for dairy development
India, the world's largest milk producer, extends Animal Husbandry Infrastructure
Development Fund.
• Budget allocates Rs 29,610.25 crore for three years until 2025-2026.
• Initiatives include dairy processing, product diversification, breed multiplication farms,
animal feed plants, waste management, and veterinary drug and vaccine production.
• Government plans a comprehensive Dairy Development program to empower farmers,
improve productivity, and control foot and mouth disease.
9. Boost aquaculture productivity by 5 tonnes per hectare and double exports:

 Aims to boost aquaculture productivity by 5 tonnes per hectare.
 Plans to double exports to Rs1 lakh crore.
 Proposes establishment of five integrated aquaparks under PM-Matsya Sampada
Yojana.
 Aims to create 55 lakh job opportunities.

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ABOUT THE SECTOR:

OVERVIEW OF INDIAN AGRICULTURE SECTOR

UNION BUDGET 2024-25 FOR THE AGRICULTURAL SECTORS:

Highlights of Union Budget 2023-24 in Agriculture Sector

 Agri-start-ups by young entrepreneurs will be supported by the launch of an

 A new sub-scheme of the PM Matsya Sampada Yojana will be introduced with a

 A Rs.2,516 crore investment was made to start computerising 63,000 Primary

1. Approximately Rs 1,27,470 crore budget allocated for agriculture in India's interim

2. Rs 20 lakh crore agriculture credit target:

3. Funds allocated for the ongoing implementation of PMFBY:

4. Integration of 1361 mandis into e-NAM:

5. Addressing post-harvest losses with public-private partnerships to improve infra and

6. Atmanirbhar Oil Seeds Abhiyan for self-sufficiency and food security:

7. Reduce import dependencies with increased adoption of Nano DAP:

8. Comprehensive Dairy Development program for dairy development

9. Boost aquaculture productivity by 5 tonnes per hectare and double exports:

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