A ₹2 trillion cheque is getting ready for the agriculture ministry
NEW DELHI : The Union budget for 2024-25 may set aside ₹2 trillion for the agriculture ministry to help it expand the government’s flagship schemes on income support and crop insurance for farmers, two officials aware of the plans said. This will be a 39% increase in allocation for the ministry, which received ₹1.44 trillion in the 2023-24 budget. A bigger allocation may also help the ministry raise annual farmer income support from the current ₹6,000 to ₹9,000.
The Union ministry of agriculture and farmers’ welfare governs key schemes such as Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) and Pradhan Mantri Fasal Bima Yojana (PMFBY). PM-Kisan, which completes five years in February, promises up to ₹6,000 every year for farmers as minimum income support, while PMFBY, which debuted in 2016, is a crop insurance scheme that allows farmers to pay only 1.5-5% of the premium depending on the crop and the harvest season. The balance premium is paid by the government.
PM-Kisan may get a 30% increase (from ₹60,000 crore allocated for 2023-24) and PMFBY may receive more than 17% higher allocation ( ₹13,625 crore for 2023-24), albeit the requirement is higher, the officials said on the condition of anonymity. The ministry’s crop division may also see higher allocation. It is unclear if the government will announce an expansion of the schemes in the interim budget on 1 February, or in the first full budget of the next government after the general elections in May.
“Our budget requirement for PMFBY in FY25 is estimated at ₹18,000 crore, though we are expecting an allocation of ₹16,000 crore. However, it may change until the budget is announced, because we don’t yet know the rabi liability. We will get to know about it by 31 December
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