Lok Sabha Approves Expenditure for 2025-26 Budget

On March 21, 2025, the Lok Sabha passed the Demands for Grants for various Ministries for the financial year 2025-26. This approval included an expenditure exceeding ₹50 lakh crore. The process involved the application of the guillotine, allowing funds to be approved without extensive discussion. The session also saw the passage of the Appropriation Bill (3), 2025, introduced by Finance Minister Nirmala Sitharaman.

Agriculture Budget Highlights

The Lok Sabha held a four-hour debate on the Ministry of Agriculture and Farmers’ Welfare’s budget. Agriculture Minister Shivraj Singh Chouhan brought into light that the government has allocated ₹22.38 lakh crore for the procurement of farm produce at minimum support price (MSP). He stated that this procurement formula enables farmers to earn 50% profits over their production costs. The Minister described a 5% growth in agriculture as achievement and affirmed the government’s commitment to farmers’ welfare.

Digital ID for Farmers

To enhance accessibility to government schemes, every farmer will receive a digital ID card. This initiative aims to streamline the benefits provided to farmers and improve their engagement with government programmes.

Opposition Concerns

During the debate, several opposition MPs raised issues regarding police actions against protesting farmers along the Punjab-Haryana borders. Former Punjab Chief Minister Charanjit Singh Channi expressed concerns over the government’s decision to lower import duties on grains. He warned that this could jeopardise India’s agricultural produce, especially in light of potential reciprocal tariffs from the United States.

Farmers’ Agitation and Government Response

Channi accused the BJP government of betraying farmers by failing to uphold its promises regarding MSP. He brought into light the contradiction between the government’s calls for dialogue and the forceful removal of protesting farmers. Samajwadi Party MP Dharmendra Yadav pointed out the distress faced by farmers, citing over a lakh farmer suicides in the past decade and the lack of compensation for families of those who died during protests.

Historical Context and Policy Reversal

DMK MP T.M. Selvaganapathi compared the current treatment of farmers to colonial rule. He condemned the government’s alleged capitulation to U.S. demands regarding agricultural policies. The MP stressed that this shift threatens to reverse the progress made during the Green Revolution, which reduced India’s dependence on U.S. wheat imports.

Disparities in Agriculture

NCP MP Amol Ramsing Kolhe brought into light disparities between U.S. and Indian farmers, particularly in soybean production. He noted that after the U.S. power transition, there were demands for India to open its agricultural market. This situation poses challenges for Indian farmers without clear government guidance.

Questions for UPSC:

1. Examine the impact of the Green Revolution on India’s agricultural independence.
2. Discuss the role of digital technology in enhancing agricultural productivity in India.
3. Critically discuss the implications of lowering import duties on agricultural products for India’s farmers.
4. Analyse the historical context of farmers’ protests in India and their socio-economic implications.

Answer Hints:

1. Examine the impact of the Green Revolution on India’s agricultural independence.

1. The Green Revolution began in the 1960s, introducing high-yield variety seeds, fertilizers, and irrigation techniques.
2. It increased food grain production, particularly wheat and rice, reducing dependence on food imports.
3. India transitioned from a food-deficient nation to a self-sufficient one, achieving food security.
4. However, it also led to regional disparities and environmental issues due to intensive farming practices.
5. The revolution laid the foundation for modern agricultural practices, impacting policy and farmer livelihoods.

2. Discuss the role of digital technology in enhancing agricultural productivity in India.

1. Digital technology facilitates access to real-time information on weather, market prices, and best farming practices.
2. Mobile apps and platforms connect farmers to buyers, reducing the role of middlemen and increasing profits.
3. Digital ID initiatives streamline access to government schemes and subsidies for farmers.
4. Precision agriculture technologies help optimize resource use, improving yields and sustainability.
5. Data analytics can enhance decision-making processes for crop selection and resource management.

3. Critically discuss the implications of lowering import duties on agricultural products for India’s farmers.

1. Lowering import duties may lead to increased competition from foreign agricultural products, affecting local farmers’ income.
2. It could undermine the Minimum Support Price (MSP) system, making it harder for farmers to sustain their livelihoods.
3. Farmers may face challenges in adapting to changing market dynamics and quality standards set by foreign imports.
4. Potential retaliatory tariffs from other countries could adversely impact Indian exports and trade balance.
5. Long-term implications may include loss of agricultural diversity and increased vulnerability to global market fluctuations.

4. Analyse the historical context of farmers’ protests in India and their socio-economic implications.

1. Farmers’ protests have historical roots in agrarian distress, often triggered by debt, crop failures, and government policies.
2. The 1980s and 1990s saw protests against liberalization policies that adversely affected farmers’ incomes.
3. Recent protests, including those against the farm laws, highlight ongoing issues of MSP, land rights, and corporate influence.
4. Protests reflect broader socio-economic inequities, with marginalized farmers seeking justice and policy reforms.
5. The impact of these protests includes heightened political awareness among farmers and shifts in policy discussions at the national level.