Union Budget 2023 | 'We welcome the Agri Accelerator fund for horticulture'

Union Finance Minister Nirmala Sitharaman presented the last full budget of the second term of the Narendra Modi government in Parliament on February 1. Here's what experts, industry insiders are saying.

'The Agriculture Accelerator Fund is a welcome and innovative step'

"The Agriculture Accelerator Fund is a welcome and innovative step by the Indian government, which will help accelerate the development of new technologies and innovative solutions addressing India’s specific agricultural issues ranging from supply chain to credit availability & inclusion ”

-Parijat Jain, Partner at Bain & Company

'The proposal to set up an Agri Accelerator Fund for Agri-tech startups is a welcome move'

“The proposal to set up an Agri Accelerator Fund for Agri-tech startups is a welcome move, and was much anticipated. Agri-tech startups who are focusing on improving the market reach for agricultural products and produce, as well as last mile delivery of products to farmers should benefit from this move. Efficient logistics and warehousing infrastructure would also be of key relevance.”

-Raj Ramachandran, Partner, JSA on Budget

'The Agri Accelerator Fund is a good step'

"With the agri budget being increased by 20 lakh crore, it calls for a massively positive step for the growth of the sector. Additionally, the Agri Accelerator Fund is a good step, it will help enable businesses to navigate government regulations and connect all stakeholders in the farm supply chain and network. This will be a game changer in terms of enhancing the agri value chain. Additionally, the focus on Amrit Kal which lies in a tech-enabled economy will only aid in the development of advanced machinery and infrastructure in all fields. Moreover, the focus on digital agri-infrastructure development will also aid in the development of a global workforce that will accelerate the agricultural economy and make it stand at par with global agri-infrastructure."

-Vasu Naren, Managing Director & CEO, Sona Machinery

'We welcome the Agri Accelerator fund'

“The Budget is on expected lines and has given a lot of cheer for the honest income tax payer. In case of the Agriculture sector, we welcome the Agri Accelerator fund for horticulture as well as continued thrust on Millets. Green Energy transition fund of INR 35000 crore in line with our commitment of achieving carbon neutrality by 2070 is also encouraging .No announcement of road map for National Oilseed mission is a bit of a dampener for the Vegetable Oil sector as our edible oil security continues to be heavily compromised. For the Sugar and Edible oil sector, this budget is a non-event as the Finance Minister has not tinkered with duties. Edible Oil refining industry was demanding restrictions on Refined Palmolien imports in line with Prime Minister’s clarion call of Make in India. Nothing has been announced on that front. Cooperative Sugar sector would heave a sigh of relief as the long standing tax demand of close to 10000 crore has now been practically withdrawn.”

-Atul Chaturvedi, Executive Chairman, Shree Renuka Sugars Ltd.

We are hoping to see some reforms aimed at spurring the economy such as CAPEX outlays in areas like infrastructure, education, healthcare, and agriculture: Nirav Choksi, CEO, Co-founder at CredAble

We think that government should restrict /regulate the import of agrochemical formulations into India, which can be manufactured in India from the locally manufactured agro actives: Vimal Kulshrestha, President Crop Protection, Hikal Ltd

"The Indian crop protection industry is a major contributor to the country's agriculture sector, providing essential products and services to boost and protect agricultural produce. However, the industry has been facing a number of challenges in recent years, including increased competition from cheaper imports, regulatory hurdles, and a lack of investment in research and development. Agrochemicals are excluded from the PLI scheme that is resulting in delays in new investments. In light of these challenges, the industry is hoping for positive announcements of schemes, regulatory and tax concessions that will support the growth of domestic agrochemical manufacturers. We think that government should restrict /regulate the import of agrochemical formulations into India, which can be manufactured in India from the locally manufactured agro actives and enough capacity is available with Indian manufacturers. This will benefit India by reducing its foreign exchange usage. It will also boost the Government’s ‘Make in India’ efforts. Indian agrochemical industry is poised to make domestic products that can be imported to the world to contribute to the country’s export economy.

Another key area of concern is the need for increased investment in research and development. The industry is looking for measures that will encourage investment in R&D to create new products and improve existing ones. The government's support in this area will help the industry to stay competitive. Overall, the crop protection chemical industry in India is hoping for a budget that will support the growth and development of the sector, addressing the challenges it currently faces and providing the necessary resources to help it succeed in the future.”

Govt should also simplify data sharing mechanisms for MSMEs w.r.t. licenses, financials, bank statements, tax returns, GSTIN etc, to enable alternate credit rating and lending: Mr Debarshi Dutta, Co-founder & CEO at Ayekart

The government has been focusing on doubling farmers income and aims to set up 10,000 FPOs to facilitate and accelerate this initiative. While financial support will help, skilling and managing these FPOs professionally and supporting initiatives to digitise farm-level data and market linkages will help exponentially grow the impact of these FPOs. At the same time, Agro-based MSMEs working in this space are under pressure due to increased cost of funds, risk of disintermediation by fintech / large corporates, and generally adverse market conditions. An extension of the Emergency Credit Line Guarantee Scheme (ECLGS) will help sustainability in the short term. The government should also simplify data sharing mechanisms for MSMEs w.r.t. licenses, financials, bank statements, tax returns, GSTIN etc., to enable alternate credit rating and lending.