Budget 2024: Agri-research? Yes, but where is the money?

The government will undertake a comprehensive review of the agriculture research set up to bring the focus on raising productivity and developing climate-resilient varieties, the finance minister said. Funding, the minister added, will be provided in challenge mode, including to the private sector. As part of this plan, 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation.

The importance of this announcement is not lost on anyone who closely tracks Indian agriculture. Farming in India is plagued by both low productivity and volatile prices. Recurrent climate shocks have affected a wide variety of crops in recent years—from wheat and rice to pulses and perishables like tomatoes and onions. Improved varieties have the potential not just to improve farm incomes but also ensure stable prices for consumers.

Despite the importance accorded to ‘research’ in the budget speech, the monetary allocation appears muted. The Department of Agriculture Research and Education (DARE) under the farm ministry has been provided ₹9,941 crore (budget estimate or BE) for 2024-25. This is barely any improvement over the ₹9,877 crore spent in 2023-24 (revised estimate or RE).

The budget for apex research institutions which include the Indian Council for Agricultural Research (ICAR), central agricultural universities and the National Academy for Agricultural Sciences (NAAS) is ₹7,103 crore for 2024-25, lower than the ₹7,248 crore spent last year.

To be sure, there are other schemes beyond the remit of DARE to improve crop productivity. These schemes under the Department of Agriculture and Farmer’s Welfare include the Rashtriya Krishi Vikas Yojana (RKVY) and the Krishionnati Yojana. For both these schemes, the increase in monetary allocation is paltry- from ₹14,216 crore in 2023-24 (BE) to ₹15,000 crore in 2024-25 (BE).

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The Economic Survey released on Monday observed that for every rupee invested in agricultural research, the payoff is ₹13.85- among the highest returns on investment.

India is the second largest producer globally for crops like rice, wheat, sugarcane, cotton, and vegetables. It is the top producer of pulses and milk. Yet, productivity is far below global averages, for instance productivity of oilseeds in India is less than a tonne per hectare, compared to the global average of 2.3 tonne per hectare. India is heavily dependent on edible oil imports.

Similarly, India is the largest exporter of rice globally but productivity at about 4 tonne per hectare is far lower than China's 7 tonne per hectare.

Currently, most of the central budget on agriculture research is spent on salaries, pensions and administrative expenses leaving little for spending on research and advanced scientific equipment.

The budget has set an ambitious target to achieve self-sufficiency in pulses and oilseeds, but without any significant increase in research funding it remains unclear how or when this goal will be achieved.

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