The Pros of Agriculture Accelerator Fund from Union Budget 2023

By: Gaurav Batra In: Agriculture Industry Last Updated: 2023-02-04

In the most recent budget, Finance Minister Nirmala Sitharaman announced the establishment of an Agriculture Accelerator Fund. In a nation where agriculture employs just under 50% of the workforce. It accounts for 18 per cent of GDP (gross domestic product). This fund would aim to accelerate agricultural entrepreneurial activity.

Agriculture Accelerator Fund: -

  • To enhance the number of agricultural startups in rural regions, this fund will be established.
  • The fund's primary goal is to offer creative, cost-effective solutions.
  • It will solely be concerned with farmers and the difficulties they encounter.
  • With the help of these grants, more young entrepreneurs will be inspired to launch agricultural enterprises.
  • Priority will be given to startups that concentrate on affordable solutions.
  • Additionally, technological businesses that want to boost agricultural production will be prioritized.

Indian agricultural startups have been extremely popular in recent years. They work to modernise and enhance the nation's traditional agriculture industry. In India, small and marginal farmers make up the majority of farmers. While the agricultural industry struggles with issues including low productivity, shoddy infrastructure, and restricted access to technology and funding. These firms are addressing these problems and changing India's agriculture industry.

The firms, which are a part of the third-largest startup ecosystem in the world, have sparked a movement among consumers. They are looking for real farm-to-fork goods that use quick digitally enabled delivery from producer to consumer.

The improvement of Indian agriculture's production and efficiency is one of these businesses' main goals. To maximize agricultural productivity and reduce waste, they employ cutting-edge technology. It includes precision farming, intelligent irrigation systems, and weather-based advice services.

With the use of these technologies, farmers can choose the best seeds, apply fertilizer, and control pests with knowledge. They also offer farmers timely information and insights so they can choose their crops wisely.

Lack of finance and funding access is a big issue that Indian farmers must deal with. By giving farmers in India access to financial services and goods like microfinance and crop insurance, agricultural entrepreneurs are assisting farmers in overcoming this problem. These financial services enable farmers to make investments in their businesses. It also reduces the likelihood that their crops would fail due to natural disasters or other circumstances.

Indian agriculture entrepreneurs are also aiming to enhance the logistics and supply chain of the industry. Technology is being used to minimise the number of middlemen in the supply chain and streamline the distribution of agricultural products. This lessens the post-harvest losses that are typical in the conventional agriculture industry and ensures that farmers get paid fairly for their output.

An agriculture accelerator fund would therefore enable many more of these agri-startups. It would be essential in altering the Agricultural sector in India and enhancing farmer income.

These firms are enhancing the productivity and profitability of Indian agriculture. They are doing it by utilising cutting-edge technologies, financial services, and enhanced supply chain systems. The agricultural industry in India has the potential to grow and expand to become one of the world's top producers of agricultural products. This would be advantageous for both the nation and its citizens from an economic and social standpoint.

The Narendra Modi administration has ranked inclusive development as its top goal, according to Finance Minister Nirmala Sitharaman. She made the announcement during her Budget address.

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

The Minister said that the 2024 agriculture loan target has been raised to 20 lakh crore, with an emphasis on animal husbandry, dairy, and fisheries.

According to the Economic Survey, which was released yesterday, agriculture has done well. But the industry has to "re-orient" to address problems like the negative effects of climate change and growing input costs, among others.

The Survey indicates that during the past six years, the agriculture sector has risen at an average annual growth rate of 4.6%. In comparison to the 3.3% growth in 202021, it increased by 3% in 202122.

India has recently risen quickly as the world's largest exporter of agricultural goods. The value of agricultural exports peaked in 20212022 at USD 50.2 billion.

According to Ms Sitharaman, the government would also promote the millet institution in Hyderabad as a centre of excellence.

Other Agri-Based Announcements:-

  • The Government of India is launching a digital public infrastructure to offer agricultural solutions.
  • Additionally, the infrastructure will be introduced with a focus on crop health, crop planning, and fostering the development of agriculture in the nation.
  • Fertilizer and agribusiness stock prices rose as soon as the minister introduced the Agriculture Accelerator Funds in the budget.

The foundation of India's economy is unquestionably agriculture and related businesses, which together provide rural employment, development, and food security. We must applaud the Finance Minister for ensuring that the government continued to accept this truth in its proposed budget for this year as well. The budget for this year tries to encourage technology and innovation in agriculture to prepare the industry for the future.

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