With the farmer protests raging in Delhi, the government has slightly increased the budget allocated for agriculture and allied activities from the previous year. In FY2021-22, the budgeted expenditure for the sector stood at ₹1,48,301 crore.
A significant portion of allocated amount went towards funding the PM-KISAN scheme. The scheme, which provides income support to farmers, has been allocated ₹65,000 crore.
Meanwhile, major Rabi crops including wheat, pulses and oilseeds reached record acreage levels, which could pose challenges for the government in procuring the harvest at the Minimum Support Price.
The share of expenditure on agriculture and allied activities has steadily increased since FY18. In FY22, allocation to the sector accounts for nearly 4.25% of the total Budget expenditure.
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After being launched in February 2019, the PM-KISAN scheme has dominated the budget of the Agriculture and Farmers’ Welfare Ministry. In FY22, the share of the scheme in the Ministry’s budget stood at 50%. The scheme provides income support to farming families.
Major Rabi crops have recorded a significant increase in acreage this season. This has fuelled fresh concerns regarding the government’s ability to procure at the Minimum Support Price to prevent prices from crashing.
Source: Budget documents, Department of Agriculture, Co-operation and Farmers Welfare