Budget 2023: FM announces accelerator fund for agriculture startups in rural areas

Finance Minister Nirmala Sitharaman today announced in her Budget 2023 speech that an Agriculture Accelerator Fund will be set up to encourage agri startups.

Finance Minister Nirmala Sitharaman presented the Union Budget 2023 on Wednesday, in which she stated agriculture credit target increased to Rs 20 lakh cr for FY'24, with focus on animal husbandry, dairy and fisheries.

Here's a look at other key highlights:

* Presenting the Budget for 2023-24, the FM said an agriculture accelerator fund will also be set up to encourage agri-startups in rural areas.

* She further said to enhance yield of extra long staple cotton, the government will adopt a cluster-based and value-chain approach.

* The government will also support Hyderabad-based millet institute as a centre of excellence.

* At the behest of the government, United Nations declared 2023 as the International Year of Millets, with an aim to create awareness and increase production and consumption of the grain. 

* The government will launch a Rs 2,200-crore Aatmanirbhar clean plant programme.

* Digital public infrastructure for agriculture will be built as open source, open standard and interoperable public good.

* Govt plans to set up massive decentralised storage capacity to help farmers.

The Economic Survey, presented yesterday, said that agriculture has performed well but the sector needs "re-orientation" to overcome challenges like adverse impacts of climate change, rising input cost, etc.

The Survey indicates that during the past six years, the agriculture sector has risen at an average annual growth rate of 4.6%. In comparison to the 3.3% growth in 2020–21, it increased by 3% in 2021–22.

India has recently emerged quickly as the world's largest exporter of agricultural goods. The value of agricultural exports peaked in 2021–2022 at USD 50.2 billion.