Finance Minister Nirmala Sitharaman´s Union Budget for 2022 has proposed many changes, keeping in mind the challenges being faced by farmers. The Budget has been praised to favour the agri sector focusing on infusing the sector with technology such as drones and hi tech services.
ALLOCATION
- Ministry of rural development: INR 138203.63
- Ministry of agriculture and farmers’ welfare: INR 132513.62
- Ministry of chemicals and fertilisers: INR 107715.38
HIGHLIGHTS
- Delivery of digital and hi-tech services to farmers in Public-Private Partnership (PPP) mode
- Use of Kisan Drones to aid farmers
- Launching fund with blended capital to finance agriculture startups
- Implementation of Ken Betwa Link Project benefitting 9.1 lakh hectare farmland, providing drinking water to 62 lakh people and generating 130MW power
- Promotion of chemical-free and natural farming
- NABARD based capital finance option
The Tech Panda gathered the reactions of several agtech experts to find out how the budget has fared in the eyes of the ecosystem.
Read more: Budget 2022 reaction: EDTECH
Navneet Ravikar, Chairman & Managing Director, Leads Connect Services
Knowing that agriculture is the backbone of our economy, it’s revitalizing to see that the budget prioritized agtech, especially with the push on DeepTech like AI and geospatial systems. They will go a long way towards making the industry sustainable and bringing it into the 21st century
“Knowing that agriculture is the backbone of our economy, it’s revitalizing to see that the budget prioritized agtech, especially with the push on DeepTech like AI and geospatial systems. They will go a long way towards making the industry sustainable and bringing it into the 21st century.
“A more positive aspect was monitoring agriculture with Kisan Drones as well as digitizing land records. They will be the biggest leap towards the adoption of technology, bringing change at a national level. Another much-welcomed part of the budget was the promotion of chemical-free and natural farming in the country. Taken together, all these measures will drive the sector and get the ball rolling towards higher growth.
“I also expect the effort to increase the production of oilseeds will provide states like UP with high impetus, which, in turn, will help increase farmers’ income. This, along with the announcement of PPP to deliver emerging digital services to farmers, will truly bring a ground-level change to agriculture, not only modernizing it but creating plenty of employment opportunities.”
Taranjeet Singh Bhamra, CEO & Founder, AgNext Technologies
For agtech sectors, this is a favourable budget that will pave the way for the robust growth of the agtech players, especially the startups, to scale domestically and internationally
“I would like to commend the government for putting forward an enterprising vision of India at 100. The agriculture sector has proven its resilience from external shocks like the COVID pandemic, with growth at 3.9% in FY2021-22, an increase from 3.6% last year. The budget’s focus to increase technological intervention in agriculture value chains will further help to cushion the sector against global uncertainties.
“The government’s dedicated focus to increasing investment in agriculture and the agtech sector will allow for all-inclusive development that will benefit farmers as well as agribusinesses. The proposed PPP mode scheme to promote the delivery of digital and hi-tech services in the agriculture sector will lead to greater cooperation between the private agtech players and public research institutions.
“Fiscal support from the government will provide the necessary impetus for the growth of the rural economy and the export potential of India’s agri-commodities. For agtech sectors, this is a favourable budget that will pave the way for the robust growth of the agtech players, especially the startups, to scale domestically and internationally. The emerging agtech startups will enjoy the dual benefits afforded to the sunrise agtech sector and startup ecosystem in the budget of 2022.”
Amit Sinha, Co-founder, Unnati
It’s very forward-looking with a long-reaching impact on how agriculture will grow in India
“The budget has a strong focus on agriculture with a specific focus on the delivery of high tech services, funding of startups through NABARD, focus on “Drone Shakti” for farmers, climate action. There is a good balance of the short term and long term measures. It’s very forward-looking with a long-reaching impact on how agriculture will grow in India. These initiatives will solve the core problem of improvement of farm productivity and help improve farm incomes significantly.”
Dharmishtha Goenka, Founder of Praakritik
Where Kisan drone, digitalisation of land and allied technology will help in better yield and more conversions from traditional to chemical free and organic farming, the inclusions of a NABARD based capital finance option will help young startups like us to grow
“Glad to see the government of India recognising and making natural and organic farming as an important part. Where Kisan drone, digitalisation of land and allied technology will help in better yield and more conversions from traditional to chemical free and organic farming, the inclusions of a NABARD based capital finance option will help young startups like us to grow.
“In addition to this the national logistics and supply chain program GATI SHAKTI, will help us reach consumers faster with fresh produce. Year 2023 will be the year for clean eating and this vision of our Hon. PM to take this globally.”
Anuj Kumbhat, Founder and CEO, WRMS
The budget also brings into picture a comprehensive package of participation of state governments and MSMEs to help farmers adopt natural farming practices; tremendously helpful for us to promote sustainable agriculture at a better pace
“The Union Budget 2022 has opened new ways of farm and grain procurement for FY23 with an allocation of INR 2.37 trillion. It also promotes chemical free natural farming to boost sustainable agriculture productivity and income of farmers that will help WRMS align its services better and explore our utmost potential while providing farmers with high-end sustainable agriculture services progressively throughout the country.
“The budget also brings into picture a comprehensive package of participation of state governments and MSMEs to help farmers adopt natural farming practices; tremendously helpful for us to promote sustainable agriculture at a better pace.”
