Union Budget 2022-23: What heads and experts from India say

Experts and heads of agriculture companies and start-ups have by and large welcomed the Union Budget 2022-23. However, some of them also feel that more could have been done for the farmers. Let us take a look at the experts’ views.

Pravesh Sharma, Director, Samunnati Agro

“The theme of this year’s Budget seems to be incentivizing a forward-looking vision for agriculture. I appreciate the Government’s stance to continue the MSP regime; however, the key would be involving the private sector for building efficiency in MSP procurement. We also expect the Government to come up with practical solutions to address the pending demand of farmers to provide a legal guarantee of MSP.

“It is great that 2023 has been declared the International Year of Millets, as this crop is currently not considered in the government schemes and producers are largely small and marginal farmers that too mostly in rainfed regions. It will be important to ensure the growth of integrated value chains so that the benefits of these nutritious crops can flow back to primary producers.

“Introducing Kisan drones is a good step to ensure transparency and efficiency in key farm interventions. However, developing a regulatory framework for ease of introduction and use of drones is equally important. We believe that the NABARD Fund will definitely promote investment in this sector.

“While the overall thrust of the Budget seems to be on infrastructure, agriculture has not been overlooked. Some key areas such as crop diversification and promotion of domestic oilseeds production are important breakthrough ideas and can have long-term benefits to the agriculture sector.”

Devroop Dhar, Co-founder and MD, Primus Partners

“The support towards branding millet products nationally and internationally is a timely and welcome move. With the UN declaring 2023 as the year of millets and with the known health and nutritional benefits of millets, it is expected that the use of millets would go up tremendously. This is the right time to ensure India continues its leadership position as a producer of millets.”

Vasanth Madhav Kamath, Founder & CEO, Hydrogreens Agri Solutions

“The Budget 2022 has rightly initiated a significant focus towards the rural economy and rural development. With the introduction of Kisan drones, the government seems to usher a wave of technology into the agri-tech sector.

“In another interesting development, funds with combined capital were also announced under NABARD. We welcome the Government's low carbon development strategy which would help unlock more job opportunities.”

RG Agarwal, Group Chairman, Dhanuka Agritech

“The Government's focus on augmenting infrastructure via the ‘Gati Shakti’ plan, focus on the promotion of usage of drones for various farm activities including crop assessment, digitization of land records, spraying of insecticides and nutrients is indeed a welcome step and would immensely help the agriculture sector.

“It would have been also apt had the Finance Minister also reduced GST and customs duty rates on some of the agro-chemicals products, which would have reduced the overall cost for the farmers. "

Prasanna Rao, MD & Co-founder, Arya.ag

“The Union Budget has set the ball rolling for the agritech sector in the country. The special focus around the post-harvest considerations related to millet farming is a welcome step and will help enhance the country’s farm produce quotient. The Budget has also placed agritech in the right limelight with the Finance Minister reposing faith in the role of these new-age players to transform the agriculture sector in the country under the PPP mode. Furthermore, Finance Minister’s assurance on government support to FPOs and small farmers to procure farming equipment as well as gain access to technology-led capabilities and services is also in the right direction.”

Navneet Ravikar, CMD, Leads Connect

“One feels happy to see that the Budget has given priority to agritech, especially AI and geostatic systems. They will go a long way in making this industry sustainable and taking it in the direction of the 21st century. The other positive aspect is the digitization of land records along with agriculture surveillance with the help of drones. Another step that deserves to be welcomed is the promotion of chemical-free and natural farming.”  

Mayank Tiwari, Founder and CEO, ReshaMandi

“The emphasis laid out on PPP on tech-driven agriculture is a welcome note for most of the agritech startups. I am sure the budget will allow for more investments in terms of domestic investors and FDI across sectors in India to drive the India@100 vision. It is also great to see the government’s continued focus on tech development, especially in the fields of AI and Blockchain. It is truly the Amrit kaal for India.”

Kishor Jha, CEO & Founder, Ergos the Grainbank

“This Budget will be a game-changer for the agriculture sector. The announcement underlined the Government's focus to build a strong ecosystem to empower the farmers. Installation of optical fibres across rural hinterlands will not only bring uninterrupted access to digital services and ensure the best returns on their produce. The farmers will be able to move from farm gate to the end buyer directly, efficiently and access small credit from the banks.”

Karthik Jayaraman, MD, WayCool Foods

“The Finance Minister has announced several major policy interventions that direct capital, both public and private, towards sunrise sectors, such as agritech, drone-tech, and climate-smart technology, as well as towards strengthening core infrastructure that impacts logistics, including food logistics. The Government has also underlined its focus on sustainability by doubling down on natural farming and regenerative agriculture.”

Diwakar Kumar, MD, Nutriagrotech

“The Budget has rightly introduced Kisan drones that seem to create an usher flow of technology in the agri-tech sector. In another interesting development, a fund with combined capital was also announced under NABARD. We are also happy to see the announcement of chemical-free natural farming which will help for exports as well as health across our country.”

Amit Saraogi, MD, Anmol Feeds

“The livestock and animal husbandry sector contributes 4.11% to GDP and 25.6% to total agriculture GDP, yet there was inadequate attention presented to the sector in the Union Budget. Duty reduction on certain inputs required for shrimp aquaculture to promote its exports is a welcome move as it will further boost entrepreneurial mindset and help in job creation. Lowering the production cost of shrimp hatchery and feed will promote growth in the sector. The fisheries and aquaculture sector has tremendous potential to generate livelihood and income. However, marine and dairy products were left untouched by the budget. Like announcements made for wheat and paddy farmers, MSP was needed to be fixed for the poultry sector as well.”

Kunal Vaid, Founder & CEO, Resham Sutra

“This year's Union Budget was, by and large, focused on all-around inclusive development, which is heartening to note. I believe that the proposed policy in the Budget and financial support for agroforestry can prove to be very useful over the long term, particularly in the tribal areas of the nation. We will also look forward with great anticipation to the proposed funds' allocation to support agri and rural microenterprises. However, we would have liked to see some more ground-level policy initiatives to encourage and incentivize rural livelihoods in the Budget, which did not happen and hence remains as a missed opportunity."