Budget

Published: Feb 9, 2023
Updated: Feb 9, 2023

Union Budget 2023: New Measures for Agriculture Sector, Cut in Food Subsidy Draws Criticism

Finance Minister Nirmala Sitharaman presented the Union Budget 2023 on Wednesday, which included a number of measures for the agriculture sector. The credit target for the sector has been increased to ₹20 lakh crore, with a focus on animal husbandry, dairy, and fisheries. However, the allocations for food subsidy saw a drastic fall, which has been met with criticism from farmer organizations.

Introduction of Digital Public Infrastructure for Agriculture

The Finance Minister introduced a "digital public infrastructure for agriculture" in the budget, which will be built as an open source, open standard, and inter-operable public good. This infrastructure will provide farmer-centric solutions such as relevant information services for crop planning and health, improved access to credit and insurance, support for the growth of agri-tech, and more.

Agriculture Accelerator Fund

The Agriculture Accelerator Fund will aim to encourage agri-startups by young entrepreneurs in rural areas. The fund will bring innovative and affordable solutions for challenges faced by farmers and modern technologies to transform agricultural practices and increase productivity and profitability.

Allocations for Department of Agriculture and Farmers' Welfare

The allocation for the Department of Agriculture and Farmers' Welfare has decreased from ₹1,24,000 in the last budget to ₹1,15,531.79 crore in this budget, a decrease of ₹8,469 crore. Allocations for the Pradhan Mantri Fasal Bima Yojana and Pradhan Mantri Kisan Samman Nidhi have also decreased, while allocation for the Department of Agricultural Research and Education has increased by ₹1,000 crore.

Decrease in Food Subsidy and increase in Fertilizer Subsidy

The total food subsidy has decreased from ₹2,06,831.09 crore in 2022-23 to ₹1,97,350 crore in this budget. The fertilizer subsidy has increased compared to the last budget, mainly due to the increase in fertilizer prices due to the war in Ukraine.

Criticism from All India Kisan Sabha

The All India Kisan Sabha (AIKS) criticized the decreased allocation for food subsidy, stating that it will have direct consequences for the procurement of food grains and is a reduction in spending on food security and the Public Distribution System.

The Union Budget 2023 introduced new measures for the agriculture sector, including the introduction of a digital public infrastructure and the Agriculture Accelerator Fund. However, the decrease in allocations for food subsidy has drawn criticism from farmer organizations.