How India’s Government Aims to Transform the Country into the World’s Food Basket: Insights from Sitharaman

On February 1, 2025, farmers in New Delhi were seen weighing freshly harvested cauliflower. This day marked an important event for India’s economy. The Union Finance Minister, Nirmala Sitharaman, presented her eighth budget in Parliament. She announced plans to boost consumption as the country faces challenges like high food prices and slow wage growth.

Sitharaman revealed the government’s goal: to transform India into a global food basket. To support this, a National Institute of Food Technology, Entrepreneurship, and Management will be established in Bihar. This institute aims to enhance food processing in Eastern India.

Additionally, the government plans to create a second Gene Bank to store 10 lakh germplasm lines. This initiative is crucial for ensuring food and nutritional security in the future.

The budget allocated ₹2,11,406.37 crore to the Food and Public Distribution Ministry, up from ₹2,05,474.97 crore in the previous year. Out of this, a significant portion, ₹2,03,420 crore, is designated for food subsidy programs, especially the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

However, the Department of Consumer Affairs saw its budget cut to ₹4,360.72 crore from ₹7,345.04 crore last year. The price stabilization fund was particularly affected, dropping from ₹7,000 crore to ₹4,019.83 crore. The government claims to be taking steps to control rising prices of essential commodities like onions, tomatoes, and edible oils.

For the Ministry of Food Processing Industries, the budget increased to ₹4,364.22 crore, up from ₹2,796.79 crore. A significant portion is allocated for the Prime Minister Formalisation of Micro Food Processing Enterprises Scheme, launched under the Atma Nirbhar Bharat Package in 2020. This scheme aims to support two lakh micro food processing units in the unorganised sector over five years.

As the budget unfolds, these initiatives highlight the government’s focus on improving the agricultural sector and addressing the needs of consumers amid economic challenges.

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