Union Budget 2023 Highlights for Agriculture Sector, Complete Analysis

Union Budget 2023 Highlights for Agriculture Sector

The Indian Parliamentary System adopts a yearly procedure known as the Union Budget. Numerous elements in the Union Budget 2023–24 support farmers’ welfare and agricultural development. A total of Rs 1.25 lakh crore has been allocated for the Ministry of Agriculture and Farmers’ welfare in the Union Budget.

Through pertinent information services for crop planning and increased access to farm input credits and insurance to aid in crop estimating, the goal is to enable inclusive farmer-centric solutions.

The 2nd Advance Estimates of production of major crops for the year 2021-22 have been released by the Ministry of Agriculture and Farmers Welfare. Record food grains production of 316.06 million tonnes is estimated.

Read More: Union Budget 2023 for Railways

Highlights of Union Budget 2023-24 in Agriculture Sector

There are some major Highlights of Union Budget 2023 for Agriculture Sector described below:

Increasing Cotton Productivity

India’s agroecological variety includes a number of important crops, but one of the most important for the country’s agricultural exports is cotton. About 40 to 50 million people are employed in the cotton trade and its processing, making cotton one of the most significant cash crops and fibres in India. It also directly supports the livelihoods of 6 million farmers.

The Finance Minister stated in Budget 2023–24 that the government will use Public-Private Partnerships to implement a cluster-based and value chain approach to increase the production of extra-long staple cotton (PPP). This will require cooperation between farmers, the government, and businesses for the provision of inputs, extension services, and market connections.

Union Budget 2023 Highlights for Horticulture Industry

The second-largest producer of horticultural crops worldwide is India. The primary focus of the horticulture industry, which has grown in importance for economic growth over time, is on cultivating and keeping plants for use as food, medicine, ornamental, and other purposes.

Horticulture items are produced more cheaply and practically because they are more resistant to shifting weather conditions. The FM has announced the beginning of the Atmanirbhar Clean Plant Program for FY 2023–2024 with an investment of Rs. 2,200 crores to increase the availability of high-value horticulture crops high-quality, disease-free planting material.

Union Budget 2023 Matsaya Sampada Yojana

After China, India is the world’s second-largest aquaculture nation and the third-largest producer of fish overall. The industry is regarded as a sunrise sector and is anticipated to have a big impact on the Indian economy soon. The Budget 2023–24 includes specific investment outlays for the fishing community in order to provide the Fisheries department with its due.

The FM announced the launch of a new sub-scheme of the PM Matsya Sampada Yojana with a targeted investment of 6,000 crores to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies and expand the market. “The agriculture credit target will be increased to 20 lakh crore with a focus on animal husbandry, dairy, and fisheries,” the FM stated.

The Finance Ministry remarked in its economic review for 2022–2023 that agriculture and the related sector have performed well over the past few years.

According to the survey, this was made possible by the government’s initiatives to increase crop and livestock productivity, guarantee the farmers’ returns through price supports, encourage crop diversification, enhance market infrastructure by encouraging the formation of farmer-producer organisations, and encourage investment in infrastructure facilities through the Agriculture Infrastructure Fund.

Read More: Economic Survey 2023

Union Budget 2023 Agriculture Fund

In the Budget 2023, the Ministry of Agriculture and Farmers Welfare has a budget of over Rs 1.25 lakh crore, which includes agricultural education and research. Following are the allocations made in the Union Budget for 2023–2024 for various government initiatives and programmes. Read more here.

PM Kisan

Out of this, Rs. 60,000 crore has been set aside for the ambitious programme known as the Pradhan Mantri Kisan Samman Nidhi, which is run by the Modi government (PM-Kisan).

Kisan Credit Card (KCC)

86 per cent of the country’s population are small farmers, and they have benefited immensely from the Kisan Credit Card (KCC). This time, Rs 23,000 crores have been set aside for it so that our agrarian family members can continue to benefit from it.

Agriculture Loan

The agricultural loan objective has been raised to Rs 20 lakh crore with a focus on aquaculture, dairy, and fishing.

Digital Agriculture Mission

The Modi administration has allocated Rs 450 crore for the Digital Agriculture Mission. A budget of about Rs. 600 crores has been set aside for agricultural technology promotion.

Natural Farming

Rs 459 crore has been set aside to turn natural farming into a widespread movement. 10,000 Bio Input Research Centers would be established in order to support 1 crore farmers in Natural Farming over the course of three years.

Organizations for Farmers and Producers (FPOs)

10,000 new FPOs are being formed in order to organise Small and Medium Farmers through FPOs with the goal of providing them with all agricultural facilities.

• The benefits of this FPO have begun to trickle down to small and medium farmers, who will gain greatly from boosting their standard of life.
• A budget provision of Rs 955 crore has been set up for the creation of new FPOs this year in order to keep the trend going in the future.
• Additionally, the agriculturally advantageous Pradhan Mantri Fasal Bima Yojana and the Agriculture Infra Fund are being promoted.

Food Security and Nutrition

Security in terms of food and nutrition is one of the top concerns of the Union Government, and as a result, the budget has been increased to Rs 1,623 crore.

Startup Ecosystem

Startups in the agricultural sector will be given priority. Agriculture Accelerator Fund, for which Rs 500 crore has been allotted over the course of five years, would be established to support agri-startups by young entrepreneurs.

Millets to be known as Shri-Anna

India is leading the way with programmes to make Shri-Anna famous. In order for the Indian Millets Research Centre, Hyderabad, to succeed on a global scale as well, it will be marketed as a Center of Excellence.

Union Budget 2023-24 Agricultural Accelerator Fund

In the year 2023 budget, the government plans to emphasise “market intelligence” and offer assistance to entrepreneurs and the agritech sector as they expand.

The government will establish an agricultural accelerator fund to support argi entrepreneurs, according to the finance minister. The Fund’s goal is to provide farmers with creative, cost-effective solutions to their problems. Modern technologies will also be introduced, changing farming practices and enhancing production and profitability.

According to an IBEF report, India ranks third in terms of agritech finance and the number of agritech start-ups, with strong investor interest. Indian agritech enterprises are anticipated to receive investments of around US$ 30-35 billion by 2025. This budgetary expenditure would help agritech firms flourish in a number of Indian states, including J&K, where initiatives like the “Purple Revolution” and the Aroma Mission have highlighted the sector’s promise among young entrepreneurs.

Union Budget 2023 UPSC

Although the percentage of agriculture in the Indian economy has declined over the past 50 years, India’s agricultural sector is still vital to the country’s economy. In the last few decades, India has made great strides in agricultural productivity, including the introduction of high-yield seed varieties, increased fertiliser use, and enhanced water management techniques. Increased productivity and assistance in meeting India’s expanding food demand will result from changes to land distribution, water management, and food distribution systems.

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