Budget 2023 & Impact on Agriculture Some Reflections

The Union Budget 2023-24, presented by the Finance Minister has many positive announcements for agriculture in general and a budget allotment of Rs 1.25 lakh crore. The budget is an important instrument used by governments to shape public policy, economic growth and desired public responses to a country’s needs.

- RAM KAUNDINYA

The most important announcement is the development of open source, open standards and interoperable Digital Public Goods (DPG) for delivering several services to the farmers. As we know digital technology is transforming our lives. A DPG like Unified Payments Interface (UPI) has completely changed the landscape of payment systems in the country. Even many of the developed countries do not have such a system. The recently introduced Open Network for Digital Commerce (ONDC) will also have a major impact on the scale-up of digital ecommerce businesses and consumers. Similar DPGs are to be developed for delivering multiple services to the farmers like a supply of inputs, crop advisory /health monitoring, credit, insurance, etc. Some private organisations like Agri Collaboratory, the Consortium of International Agricultural Research Centers (CGIAR) and the World Economic Forum (WEF) are working on this subject, apart from several government organisations and the Agristack, launched by the government earlier. It is very heartening that the government has now focused attention on this subject through the budget announcement, which will help in making this a reality.

Setting up an Agri Accelerator Fund for startups in rural areas is another major announcement. This will go a long way in supporting the new wave of startups coming up in the food, agri and fintech sectors. Startups are working in the pre-sowing phase, cultivation-phase and post-harvest phase of crops, livestock, fisheries, poultry and other segments of agriculture. This fund will help in scaling up real innovations, including grass- root level innovations which can play a crucial role in making farming easier and reducing the drudgery of the farmer, apart from making it attractive for the youth and women to get into agriculture.