In a few words, the FY25 budget for the agriculture sector lacks long-term vision, national priorities, and strategic direction. The absence of defined goals and a coherent strategy to address the sector’s pressing issues renders budgetary allocations and financial measures meaningless and ineffectual.

The budget is devoid of new initiatives and appears to be a mere replica of the previous year’s budget, with some minor adjustments in allocations. Consequently, it is unlikely to catalyse significant growth within the sector.

The agriculture sector faces three major challenges: higher production costs, lower crop yields, and an ineffective crop marketing system. All other concerns are directly or indirectly linked to these fundamental challenges.

After the Covid-19 pandemic and the Russia-Ukraine war, the prices of agricultural crops have considerably declined in the global market as well as in the domestic market. However, the prices of agricultural inputs (diesel, fertiliser, pesticide, seed, electricity, and labour) did not experience a downward trend. As a result, the agriculture sector is struggling to remain competitive in the evolving economic landscape.

The government has set a mere 2pc annual growth target, a drastic reduction from the 6.25pc realised last year

Following significant financial setbacks in FY24, caused by unexpectedly low market prices for three major crops (cotton, maize, and wheat), farmers were optimistic about potential relief and support from the government to reduce their production costs, thereby sustaining the impressive 6.25 per cent and 11pc annual growth rate achieved by the agriculture sector and crop sub-sector, respectively. Nonetheless, the budget has dashed these hopes, leaving the farmers’ aspirations unmet.

The recently announced budget, along with the Finance Bill 2024, has introduced measures like an increase in the petroleum levy, imposition of sales tax on tractors, and reclassification of diammonium phosphate — our second........

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