Budget 2023: Farm sector receives major boost as FM renews thrust on rural India

Finance minister Nirmala Sitharaman presenting Budget 2023.

Finance Minister Nirmala Sitharaman on February 1 announced an increase in the agriculture credit target in the Budget 2023 to Rs 20 lakh crore, with an emphasis on industries such as animal husbandry, dairy and fishery.

The Budget 2023-24 also proposed a sub-scheme of PM Matsya Sampada Yojana with a targeted investment of Rs 6,000 crore.

In order to help the agriculture industry, which continues to be one of the largest generators in the economy, the government raises the farm credit objectives each year. Hence, the hike in agri-credit target is along expected lines.

The finance minister said a national cooperative database is being prepared, as well as plans to set up a massive de-centralised storage capacity. This will facilitate the setting up of fisheries, farm and dairy cooperative societies in uncovered villages over the next five years. This is aimed at offering a boost to allied agricultural activities in the remote areas.

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Sitharaman also announced the launch of an Agriculture Accelerator Fund which will help entrepreneurs in rural areas launch their businesses and find practical, cutting-edge solutions to the problems facing farmers. The goal is to use contemporary technologies to change agricultural methods and increase India's agricultural output. The fund is intended to promote start-up interest in the industry.

PM-PRANAM (Promotion of Alternate Nutrients for Agriculture Management) Yojana - an initiative to incentivise states for promoting alternative fertilisers was also mentioned by the finance minister.
The programme for restoration, awareness, nourishment and amelioration of Mother Earth will be launched to incentivise states and UTs to promote alternative fertilisers, Sitharaman said in her speech.