Union Budget, 2022: Agriculture Sector Receives Aid In Multiple-Spectrum

The FM Nirmala Sitharaman announces the Union Budget 2022-2023, focussing on the agriculture sector, which is the largest employment generating sector in the country. The budget mentions that the procurement of wheat in Rabi 2021-22 and the estimated procurement of paddy in Kharif 2021-22 will cover 1208 lakh metric tonnes of wheat and paddy from 163 lakh farmers. This will lead to Rs. 2.37 lakh crore direct payment of minimum support price (MSP) value to their accounts. Since the farmers' movement, the notion of MSP has emerged as one of the most important factors in the sector.

Chemical-free natural farming

Additionally, FM Sitharaman provinces that chemical-free natural farming will be promoted throughout the country, with a focus on farmers' lands in 5-km wide corridors along river Ganga, at the first stage. Along with this, support will be provided for post-harvest value addition, enhancing domestic consumption, and branding millet products nationally and internationally.

PPP model in agri-sector

For reducing India's dependence on the import of oilseeds, a rationalized and comprehensive scheme to increase domestic production of oilseeds will be implemented. For delivery of digital and hi-tech services to farmers with the involvement of public sector research and extension institutions along with private agri-tech players and stakeholders of the agri-value chain, a scheme in PPP mode will be launched.

Kisan Drones

FM Sitharaman mentions that the usage of 'Kisan Drones' will be promoted for crop assessment, digitization of land records, spraying of insecticides, and nutrients. This tech-based agricultural promotion will initiate ease in the sector. Under this project, states will be encouraged to revise syllabi of agricultural universities to meet the needs of natural, zero-budget, and organic farming, modern-day agriculture, value addition, and management.

Funding through NABARD

A fund with blended capital, raised under the co-investment model, will be facilitated through NABARD for the agriculture sector. The Budget 2022 added, "This is to finance startups for agriculture & rural enterprise, relevant for farm produce value chain. The activities for these startups will include, inter alia, support for FPOs, machinery for farmers on rental basis at farm level, and technology including IT-based support."