Budget 2024: Government to Prioritize Vegetable Production and Supply Chain Enhancement

Union Finance Minister Nirmala Sitharaman has announced the establishment of large-scale vegetable production clusters closer to major consumption centers in order to boost farm exports and strengthen the agri supply chain.

Sitharaman announced the first budget of Prime Minister Narendra Modi's third term, stating that the government's priority was to increase agricultural productivity and resilience.

"Our government will undertake a comprehensive review of the agriculture research set up to focus on raising productivity and developing climate resilient varieties," according to the finance minister.

She stated that the government will provide funds in challenge mode, including to the private sector. "Domain specialists from both the government and outside will oversee the research. Farmers will be able to cultivate 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops," said Sitharaman.

The minister went on to say that in order to attain pulse and oilseed self-sufficiency, the government will increase production, storage, and marketing capabilities. "As announced in the interim budget, a strategy is being put in place to achieve 'atmanirbharta' for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower," according to her.

Sitharaman also mentioned in her Budget 2024 speech that the government will create large-scale vegetable production clusters closer to important centers of consumption. "We will support farmer-producer associations, cooperatives, and new ventures for vegetable supply chains, encompassing procurement, preservation, and advertising," she continued.

The Red Sea situation has caused a 3% reduction in agricultural exports in Q2 2024, according to a recent report from the Agricultural and Processed Food Products Export Development Authority (APEDA).

The value of the exports decreased from USD 6.08 billion to USD 5.89 billion in the previous year. The decline was ascribed to rising freight expenses, a lack of available containers, and ongoing problems in the Red Sea region.

The amount of maize exported decreased significantly by 76%, from $517.8 million in Q2 2023 to USD 60 million. APEDA reported a 6.47 percent increase in fruit and vegetable exports despite this. In addition, the APEDA chairman disclosed plans to expand the network of agri-exports, registering 2,500 Farmer Producer Organizations (FPOs) as exporters for the current fiscal year.