An Agriculture Accelerator Fund will be established to support agri-startups by young entrepreneurs, according to an announcement made by Finance Minister Nirmala Sitharaman on Wednesday during her budget address.
The finance minister boosted the goal for agricultural loans by 20 lakh crore.
With an emphasis on dairy, fisheries, and animal husbandry, the agricultural loan objective would be raised to Rs 20 lakh crores, FM Sitharaman stated in the Parliament.
In the previous six years, the agriculture industry in India has expanded at an average annual growth rate of 4.6%.
While the entire budget has expanded at a compound annual growth rate (CAGR) of 11% over the previous ten years (fiscal 2013 to fiscal 2023), spending on agriculture and rural development has climbed at a CAGR of about 12%.
The industry is now seen as unprofitable, nevertheless. Agriculture is still a low-income industry and inefficient, despite the fact that a sizable portion of the population depends on it for their living.
In the majority of recent budgets, agriculture received little attention. The sector’s budget releases from the previous year were similarly criticized for being primarily filled with policy platitudes and little actual funding.
The Ministry of Agriculture and Farmers’ Welfare received a total allocation of Rs. 1.32 lakh crore in the previous budget. This was 0.7% more than a year ago. In actuality, there was no increase in the sector’s allocation.
Many of the issues from the agriculture sector’s past have persisted. Government control, or the absence of agri-liberalization, is one of the main problems; important factors including input-output, marketing, and distribution are under government control.
According to experts, there is a need to develop agricultural job prospects and move toward commercialization and diversification. Modern land records are equally crucial to implement farm reforms.