India Union Budget 2022-23 and the agriculture sector

The Indian agricultural sector played a major role in reviving our economy amidst Covid'19 Pandemic. The annual Budget 2022-23 focused on ensuring assured income to farmers paving the way for the economic revival for the farmers. India would be able to manage to successfully meet the increased global demands despite the Global pandemic since early 2020. An effort is made in this Article to give an insight of the highlights of the Budget 2022-23 with reference to the Agri-sector.


We can't deny the fact that agriculture is a fundamental part of India's recovery process and a crucial sector of the Indian economy. Union Budget 2022-23 is an indicator of the Government's commitment to further boost the sector and its projection as agriculture as part of its growth pillar and the major contributor to India's development model. The Central Government has to repeal the three controversial farm reform laws brought in 2020 due to the Months-long farmers' agitation demanding guaranteed MSP their Farm yield. The overall allocation for the sector increased marginally to Rs 132,513.62 crore in 2022-23, from the 2021-22 revised estimates (RE) of Rs 126,807.86 crore.

The salient features of Budget 2022 in the field of Agriculture

The key elements that influence the Agriculture sector and the Indian peasant which have been highlighted in the Budget 2022 are:
  1. The fiscal year 2022-23 would cater an expenditure to a tune of Rs. 2.37 lakh crore towards direct payments for minimum support price (MSP) to wheat and paddy farmers. The procurement of wheat in Rabi 2021-22 and the estimated procurement of paddy in Kharif 2021-22 will cover 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers, and 2.37 lakh crore direct payment of MSP value to their accounts.
  2. Small farmers and Small and Medium Enterprises would get support from Indian Railways which are going to develop new products and render efficient logistics services.
  3. 'Kisan Drones' are going to be provided by Govt. of India to help them in crop assessment, digitization of land records, spraying of insecticides, and nutrients.
  4. Organic farming or Chemical-free natural farming with PPP mode would be promoted for the delivery of digital and high-tech services to Indian Peasant. Farmers would be given support by the Centre and the States to adopt suitable varieties of fruits and vegetables, and to use appropriate production and harvesting techniques. /li>
  5. A fundraiser planned under the co-investment model through NABARD to help the startups for agriculture and rural enterprise to activate farm produce value chain. Their role also includes support for FPOs, machinery for farmers on a rental basis at farm level, and technology including IT-based support.
  6. Revision of syllabus of Agricultural Universities to familiarize the students about natural zero budget and organic farming, modern-day agriculture, value addition and management.
  7. Domestic production of oilseeds would be promoted through a comprehensive scheme by the Central Government to reduce dependence on their import.
  8. Annual savings of 38 MMT of CO2 by co-firing 5-7% bio-mass pellets in Thermal Power plants would help in providing extra income to farmers and job opportunities to locals and help avoid stubble burning in agriculture fields.

How it would help the farmers?

The budget seemed to be aimed to usher to transform Agriculture through Digitalisation, R&D and increasing the scope Supply Chain system. About 100 new Railway Logistics hubs are going to be operated to ensure smooth movement of agricultural produce across the country and help in reducing wastage through PM Gati Shakti. This would speed up the supply chain and reduce logistic costs. It is the right step to revise the syllabus in Universities and Colleges in the Field of Agriculture and the inclusion of Post offices into the core banking sector will help the farmers to receive the benefits provided by the Government in the rural parts of the country without any hindrance.

Chemical-free agriculture, commonly known as Organic agriculture which is gaining ground in India has been given importance in this Budget. It is aimed at transforming into natural and chemical-free farming throughout the country with a special focus on farmer's lands in five kilometre wide corridor along the river Ganga. This would reduce ecological imbalance and regulate the ecosystem.

Wrap Up

The sector of agriculture is the backbone of the Indian economy, providing employment contributing to 48.9% of the entire workforce in the country, also 17-18% of India's Gross Domestic Product (GDP). Restoration of important schemes like Rashtriya Krishi Vikas Yojana and Krishi Unnati Yojana for the betterment of farmers is a welcome sign. But the important elements such as Crop insurance and Minimum Support Price (MSP) as the farmers, benefit from better prices for their contributions were not given due importance. Let us hope that the Amrit Kaal as foreseen by the Finance Minister would make the Indian peasants happier in the future and would continue to contribute to the growth of Indian economy.

Article by Jagdish Patro
Jagdish Patro is a freelance writer and a regular contributor to ISC and other websites. Fond of reading books, novels and spends his leisure time by listening to music. He did his B.Sc in Applied Chemistry and his M.Sc in Resource Development Technology. He edited and published an in-house monthly journal by name ‘Srujana’ during 2009-2011 which was totally a private circulation.

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Author: Umesh03 Feb 2022 Member Level: Diamond   Points : 8

This is an excellent article giving a lot of information about the impact of Union Budget 2022-23 on the agriculture sector. It is very true that agriculture is the backbone of the country and more facilities and protection given to this area will bring the real term development to the country.

About 3 years back, in our housing society, one Chinese sales person belonging to some Chinese machine company was staying temporarily on rent and used to meet us in the morning time during the morning walk and yoga session and we used to talk about so many things and he used to tell us about his country. We were surprised to know that the farmers in China were in quite good condition as the Govt there took the load of production on its head and paid them almost 70% of the market prices. It was unbelievable because giving such a MSP would incur a huge Govt subsidy expenditure. Then we asked him from where the Govt got such a huge money. He told us that the there is so much scope of revenue generation by Govt in China that there was no problem of course because of the very strict and good governance in that country that Govt never had problem of funds. So, China is very advanced in that matter and has enough agricultural support from the farmers as farmers are also happy with the regime.

On the other hand all the schemes in India look good as far as the agricultural sector is concerned but the crucial question of MSP still remains unresolved. I think if Govt is able to realise the tax collections and GST effectively, we can generate a large revenue and give a major chunk of it for agriculture sector for steeply increasing the MSP. If a farmer produces X tons of a material then he has to be paid for that X tons irrespective of the fact that it could not be procured and transferred to the Govt or private godowns. FCI cannot do that herculean task. It has to be shared by private enterprises under Govt control. Obviously it also asks for an honest and corruption less process.

Author: DR.N.V. Srinivasa Rao03 Feb 2022 Member Level: Diamond   Points : 4

A very interesting article from the author and all the points raised in the budget for the agriculture sector is very well depicted in this article.

Farmers are always at the receiving end only. They pour their money into the soil and they don't know what they will get in return. All the difficulties are to the farmers but the middlemen are gaining. This government is trying to eliminate that risk and trying to help the farmers. That fact has been well projected in the budget.

Bringing technology to the doorsteps of the farmer is really appreciable. Making available costly equipment on a hire basis to the farmers and using drones for various activities in this sector is really good and once implemented they may do good to all the farmers.

Chemical-free agriculture is the need of the hour and the incentives proposed in the budget may create more interest in the farmers to go for this farming.

Author: Dr. Paresh Gujarati04 Feb 2022 Member Level: Gold   Points : 2

This article is one of the brief commentaries on budget 2022-23 with points discussed on the agriculture sector. The larger part of the GDP comes from the agriculture side. We must respect the farmers and their problems. The government is taking the right steps in that direction and let us spread this information to each farmer so that they can get the right benefits discussed in the budget 2022-23.

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