National Council of Applied Economic Research
Opinion: Laxmi Joshi and Souryabrata Mohapatra.
The 2024-25 Union Budget, with its allocation of substantial resources tonatural farming, marks a pivotal moment, but much needs to be done
Natural farming, with its emphasis on biodiversity, soil health, and reduced chemical inputs, is gaining traction across India’s agricultural landscape. Andhra Pradesh, Gujarat and Himachal Pradesh have emerged as testing grounds for this promising method, showcasing unique models that focus on sustainable agriculture. The 2024-25 Union Budget, with its allocation of substantial resources to natural farming, marks a pivotal moment. However, as we push toward a low-carbon agricultural future, there are still some pertinent questions to be answered. Will natural farming transform Indian agriculture? Or will it remain an ambitious but niche endeavour?
Successes and challenges in some States
In Himachal Pradesh, the State’s Prakritik Kheti Khushhal Kisan Yojana (PK3Y) has been an important driver of change. Farmers receive ₹33,000 to buy indigenous cows and an additional ₹8,000 to improve cowshed conditions, helping to promote the use of ‘Jeevamrit’ and ‘Beejamrit’, which are bio-fertilizers made from cow dung and urine. These practices are helping 6,438 farmers in districts such as Bilaspur adopt natural farming. Maize grown naturally is being purchased at a support price of ₹3,000 a quintal.
In Gujarat, the ‘Aapnu Dang Prakrutik Dang’ initiative, which declared Dang district as fully natural farming-based in 2021, exemplifies the State’s focus on mechanisation and financial assistance. Farmers receive ₹900 a month for maintaining one indigenous cow and a 75% subsidy for purchasing natural farming kits to prepare ‘Jeevamrit’. Additionally, the Gujarat Natural Farming Science University, established in 2017, has strengthened research in sustainable farming practices. These efforts have helped train over 9,000farmers in 285 cluster-based programmes.
Andhra Pradesh stands out with its Andhra Pradesh Community-Managed Natural Farming (APCNF) initiative, which has become a global model. With 1.03 million farmers practising natural farming over 1.2 million acres, the State has implemented practices such as Pre-Monsoon Dry Sowing (PMDS), which enhances soil fertility and reduces water use by relying on early monsoon rains. The State’s goal is to convert all six million farmers and eight million hectares to natural farming by 2027.
These examples highlight the diversity of India’s agricultural landscape and the potential for region-specific solutions. Yet, the question remains whether these models can be scaled nationally. Each region’s successes is tied to localised initiatives, and replicating these on a larger scale presents significant challenges.
Focus point in the 2024 Budget
The 2024-25 Union Budget took a bold step by cutting fertilizer subsidies and focusing on natural farming as a cornerstone of India’s low-carbon agricultural transition. One of the most ambitious initiatives is the establishment of 10,000 bio-input resource centres (BRCs). These centres will be essential for distributing bio-fertilizers such as ‘Jeevamrit’and ‘Beejamrit’, as well as neem-derived natural pesticides. By reducing the reliance on chemical inputs, the BRCs aim to support the government’s commitment to bringing one crore farmers into natural farming by 2025.
However, logistical challenges may undermine this ambitious plan. The experience of Chhattisgarh’s Godhan Nyay Yojana, where inconsistent supply chains for cow dung hampered progress, is a cautionary tale. The success of the BRCs will depend on the ability to source and distribute bio-inputs reliably, especially in regions where livestock ownership is low. This problem is especially pronounced in Andhra Pradesh, where the shortage of Indigenous cows makes sourcing dung and urine more difficult for some farmers.
Moreover, while bio-inputs can replace chemical fertilizers, they are often labor-intensive to produce and apply. Natural farming’s reliance on manual work —particularly in the preparation and application of bio-inputs — can be a deterrent. In Gujarat’s Dang district, mechanisation has helped ease this burden, but many small holders across India lack access to such tools.
Although the Budget’s focus on branding and certification for natural products is commendable, the ability of farmers to access premium markets remains uncertain. Certification is crucial for helping farmers fetch better prices, but the scale and the pace of this transition are slow. Can India’s agricultural system effectively support millions of farmers in making this leap, financially and logistically?
The issue of mainstreaming
One of the most significant barriers to scaling natural farming is labour. Unlike conventional farming, which relies heavily on chemical inputs, natural farming often requires more manual intervention. Farmers must prepare bio-inputs such as ‘Jeevamrit’and ‘Beejamrit’ and apply them frequently. The process of producing these bio-fertilizers at home is not only labour-intensive but also depends on the availability of livestock. Without mechanisation or technological support, many farmers will find it difficult to transition to natural methods.
Input supply is another critical issue. As seen in Chhattisgarh’s Godhan Nyay Yojana, the availability of cow dung and urine, the core ingredients for bio-fertilizers, is inconsistent. The success of the 10,000 BRCs depends on building a reliable supply chain for these materials. In regions where livestock numbers are low, such as parts of Andhra Pradesh, alternative sources of bio-inputs must be developed. If these supply chains falter, farmers may revert to chemical inputs, thus undermining the entire initiative.
Finally, market dynamics remain a challenge. While natural farming products can command higher prices, most farmers struggle to access premium markets. Only a
fraction of India’s agricultural output is certified as organic or natural, and the competition, with cheaper, chemically grown crops, is fierce. The Union Budget’s push for certification and branding is a step in the right direction, but will these measures be enough to sustain farmers during the costly transition away from chemical farming?
Natural farming has the potential to transform Indian agriculture, but its future hinges on addressing several critical challenges. Strengthening bio-input supply chains, mechanising labor-intensive processes, and improving market access are all essential. Will the BRCs be able to meet the demands of millions of farmers, or will supply chain disruptions limit their impact? Can India create a robust market for natural products that benefits farmers and consumers?
The Union Budget has laid a promising foundation, but much remains to be done to ensure the long-term success of natural farming. Can this ambitious vision of a chemical-free agricultural future become a reality for millions of smallholder farmers across India? Or will natural farming remain a niche practice in select regions?
Laxmi Joshi is with the National Council of Applied Economic Research (NCAER), New Delhi. Souryabrata Mohapatra is with the National Council of Applied Economic Research (NCAER), New Delhi. The views expressed are personal