In its budget, the government on February 1stproposed a higher budget allocation to tap the allied farm and food processing sectors to boost farmers’ income for the next fiscal, besides announcing financial support for startups, promotion of Kisan drones, and a PPP mode for delivery of high-tech agri-services to farmers.
The government has also increased the farm credit target to Rs. 18 lakh crores for 2022-23 from Rs. 16.50 lakh crores this fiscal. The budget allocation for the Ministry of Agriculture and Farmers’ Welfare has been raised marginally by 4.5 percent to Rs 1, 32,513 crores for the 2022-23 fiscal.
Yet, the budget allocation for the Ministry of Fisheries, Animal Husbandry and Dairy has been increased by 44 per cent to Rs. 6,407.31 crores and for Food Processing Industries by 2.25 times to Rs. 2,941.99 crores for the next fiscal.
The FM said as part of inclusive development, the government will implement a “rationalized and comprehensive scheme” to increase domestic oilseed production, thereby reducing the country’s dependence on the import of edible oils.
The government will also bring in legislative and policy changes to promote agro-forestry and implement a comprehensive package with states to adopt suitable varieties of fruits and vegetables that can be processed.
Further, the government will promote the use of “Kisan Drones” for crop assessment, digitisation of land records and spraying of insecticides, she added.
The minister stated that the government will facilitate a fund with blended capital raised under the co-investment model through Nabard to finance startups and rural enterprises working in the agri-space.
The activities of these startups will include inter-area support for farmer-producer organisations (FPOs), machinery for farmers on a rental basis at the farm level, and technology, including invitee base, she added.
The government will provide post-harvest support for enhancing domestic consumption of millet products internationally, as 2023 has been announced as the International Year of Millets.
Meanwhile, Agriculture Minister Narendra Singh Tomar, in a statement, hailed the budget proposals, saying unprecedented provisions have been made for the overall development of the farm sector.
The unprecedented provisions made for agricultural diversification, promotion of organic and natural farming, increasing the capacity efficiency of farmers, Kisan drones, irrigation, adding courses in agricultural universities and agricultural research will bring about a paradigm shift in the farm sector, he added.