Bearing in mind that agriculture is a fundamental part of India’s recovery process and a crucial sector of the Indian economy, the Union Budget 2022-2023 has proposed Rs 132,513.62 Crore for the agricultural sector, a slight increase of 4.5% compared to last year. and highlighted the promotion of Kisan Drone for crop assessment, digitization of land records, insecticide spraying, providing digital and high-tech services to farmers.
The government has increased the agricultural credit target to Rs 18 lakh crore for the financial year 2022-23 from Rs 16.50 lakh crore for the current financial year.
Finance Minister Nirmala Sitharaman said the focus was on ensuring secure income for farmers with an announcement of Rs 2.37 lakh crore for direct Minimum Support Price (MSP) payments to farmers. wheat and paddy producers for the financial year 2022-23.
Farmer leaders claimed that the amount of Rs 2.37 lakh crore towards the MSP was lower than in the previous year when a total of Rs 2.87 lakh crore was paid to them. They also claimed that the agriculture budget was revenge for farmers’ protests.
To finance start-ups and rural businesses working in agri-space, the minister said the government will facilitate a fund with mixed capital raised under the co-investment model through NABARD.
She said the government will encourage chemical-free natural farming across the country, with a focus on farmers’ land in five-kilometre-wide corridors along the Ganges River initially.
For the provision of digital and high-tech services to farmers, she said the government will launch a public-private partnership (PPP) model with the participation of public sector research and extension institutions as well as private sector stakeholders. agri-technology and agricultural value chain stakeholders.
According to the budget document, fund allocations for Prime Minister Narendra Modi – Pradhan Mantri Fasal Bima Yojna (PMFBY) flagship programs are proposed at Rs 15,500 crore for the current financial year compared to Rs 15,989 crore last year.
Reacting on the budget, Dr KC Ravi, Director of Sustainable Development, Syngenta India Pvt Limited, said the focus on using Kisan drones for crop assessments, land records, insecticide spraying and of micronutrients, which will be a game-changer for the agricultural sector.
Budget allocation for the Ministry of Fisheries, Livestock and Dairy Industry has been increased by 44% to Rs 6,037.31 crore and for food processing industries by 2.25 times to Rs 2 941.99 crore for the next financial year.