Union Budget 2023: What did FM Nirmala Sitharaman announce for agriculture?

Budget 2023: Finance Minister Nirmala Sitharaman said that the Centre will encourage one crore farmers to take up natural farming

In her Budget 2023 speech, Nirmala Sitharaman made a slew of announcements for the agriculture sector. An Agriculture Accelerator Fund will be launched to encourage agri-startups by young entrepreneurs. Also, the agri credit target was hiked by Rs 20 trillion. 

"The agricultural credit target will be increased to Rs 20 trillion with a focus on animal husbandry, dairy and fisheries," FM Sitharaman said. Last year, the government increased the agricultural credit target to Rs 18 trillion for 2022-23 fiscal from Rs 16.50 trillion the year before.

Also, she said that the Centre will encourage 10 million farmers to take up natural farming. 

Also, a Digital Public Infrastructure for Agriculture is to be built as an open source, open standard, interoperable public good. It will enable inclusive farmer-centric solutions and help improve access to farm inputs, market intel, and support for the agriculture industry, and startups, she said. 

PM PRANAM will also be launched to incentivise states and UTs to use alternative fertilisers

Anand Ramanathan, Partner, Deloitte India said, "The budget focuses a lot on the supply and input side of the agricultural value chain. The increased availability of credit, facilitation of better quality inputs through a clean plant program, investments in digital infrastructure and skill development will all help in increasing farm-level productivity by building awareness and facilitating better quality inputs. The shift towards decentralised storage is also an important step in reducing wastage and helping increase the shelf life of agricultural produce. "

"The increased focus on driving millet cultivation, consumption and exports, higher investment in fisheries and promotion of natural farming are all helpful from a crop diversification, sustainability and nutrition standpoint. The focus on better management of co-operatives and producer collectives will help farmers in realising better prices for their produce. Finally, the agriculture accelerator announcement for promoting start-ups in ag-tech enterprises will help increase yield and productivity on the supply side while also enhancing price realisation for the farmer on the demand side through more efficient market linkages," he added.