Agriculture Budget 2023- Finance Minister Establishes Agriculture Accelerator Fund to Encourage Startups

In her Budget speech today, Finance Minister Nirmala Sitharaman announced the establishment of an Agriculture Accelerator Fund to encourage agri startups, emphasizing that inclusive development is the Narendra Modi government's top priority.

According to the Minister, a digital public infrastructure for agriculture will be built as an open source, open standard, and interoperable public good to aid in the development of farmer-centric crop planning solutions.

Agriculture credit has been increased to 20 lakh crore for 2024, with a focus on animal husbandry, dairy, and fisheries, according to Finance Minister Sitharaman.

"The Finance Minister is debating the establishment of an Agriculture Accelerated Fund to support Agri start-ups in rural India to increase farm productivity and farmer profitability. Measures to boost farm income in the Union Budget 2023-24 are positive for farm mechanization, with M&M and Escorts being key beneficiaries on the tractor front "ICICI Securities stated.

Agriculture has performed well, according to the Ecological Survey, but the sector requires "re-orientation" to overcome challenges such as the adverse effects of climate change, rising input costs, and so on.

The Survey indicates that over the previous six years, the agriculture sector has grown at an average annual rate of 4.6%. It increased by 3% in 2021-22, compared to 3.3% in 2020-21.

"The budget gives special attention to the input and supply sides of the agricultural value chain. Increased credit availability, better-quality input facilitation through the clean plant programme, investments in digital infrastructure, and skill development will all help to increase farm-level productivity by raising awareness and facilitating better quality inputs. Finally, the agriculture accelerator announcement will help increase yield and productivity on the supply side while also improving price realization for farmers on the demand side through more efficient market linkages," said Anand Ramanathan, Partner, Deloitte India.

While the overall budget has grown at a CAGR of 11% over the last decade (fiscal 2013 to fiscal 2023), allocations to agriculture and rural development have grown at a CAGR of 12%.

India has recently emerged quickly as a net exporter of agricultural goods. In 2021–2022, agricultural exports will reach a record high of $50.2 billion.

Ms. Sitharaman also stated that the government will support the millet institute in Hyderabad as a center of excellence.

The United Nations declared 2023 the International Year of Millets at the request of the government, intending to raise awareness and increase the production and consumption of grain.

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