By: Naveen P Singh

The Indian agricultural sector is a cornerstone of the economy, contributing approximately 18% to the GDP and providing livelihoods for nearly 58% of the population. This essential sector ensures food security and supports numerous allied industries. However, as we approach the Union Budget for FY2025-26, we must recognize the myriad challenges that threaten its stability and growth. In the short term, volatile commodity prices and increasing farmer indebtedness compromise immediate productivity and well-being. Medium-term challenges include the urgent need to adopt sustainable practices to combat the adverse effects of climate change, which can disrupt traditional farming methodologies. Looking further ahead, the sector must innovate and evolve to maintain its vital position in a rapidly changing economic landscape. Policymakers must strategically balance these immediate pressures with long-term sustainable growth initiatives in the upcoming budget. By prioritizing immediate relief efforts for distressed farmers, investing in climate-smart agricultural practices, and fostering innovation, the government can create a resilient agricultural framework that supports economic growth and secures the future of Indian agriculture.

A Quantum Leap in Agricultural R&D – Need of the Hour

Indian agricultural research and development (R&D) is severely underfunded, at only 0.4% of agricultural GDP compared to the global average of 1%. This shortfall hinders innovation and the adoption of solutions for critical challenges such as climate-resilient crops, water management, and advanced pest control. The budget must double the R&D allocation, focusing on institutions like ICAR and SAUs while encouraging private sector investments through improved CSR tax benefits. These initiatives will cultivate a strong collaboration ecosystem among academia, industry, and farmers, ensuring breakthroughs that can enhance agricultural productivity and sustainability.

Bridging Infrastructure Gaps to Reduce Post-Harvest Losses

Post-harvest losses in India range from 10-20% annually, underscoring storage, logistics, and distribution inefficiencies. Despite allocations under the Agriculture Infrastructure Fund, these gaps persist. This budget should prioritize building rural storage silos, cold........

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