Budget 2024-25 Boosts Funds To Stabilize Food Prices And Support Farmers

The Budget for 2024-25, presented on Tuesday, has significantly increased funding for schemes aimed at stabilizing food prices and protecting farmers’ incomes during market downturns. This move comes after previous years saw minimal allocations for these programs. The rise in allocations responds to persistent high consumer food prices, which surged 9.6% in June 2024, driven largely by perishable goods, according to recent official data.

One of the key schemes targets reducing price fluctuations in tomatoes, onions, and potatoes, which have been costly in both 2023 and this year. The agriculture department’s budget has been bolstered by nearly ₹5000 crore, with a substantial ₹6437 crore allotted specifically to the PM Aasha scheme. Launched in 2018, PM Aasha includes three sub-schemes that empower state governments to buy agricultural produce like pulses and oilseeds at government-mandated minimum prices when market rates fall below these levels, causing losses to farmers.

In previous years, the PM Aasha scheme faced severe funding cuts, with allocations plummeting from ₹2200 crore in revised estimates for 2023-24 to just ₹1 lakh in budget estimates, disappointing farmers. Similarly, the price stabilisation fund under the consumer affairs ministry, established in 2014-15, has seen its allocation rise dramatically to ₹10000 crore for 2024-25, up from negligible amounts in recent years.

This fund is crucial for maintaining buffer stocks of volatile commodities, which can be released strategically into the market to stabilize prices. It also facilitates direct purchases from farmers. The recent funding boost aims to enhance support for farmers and mitigate the impact of price volatility on essential food items.