As India’s agricultural sector faces numerous challenges, including post-harvest losses, inadequate infrastructure, climate change, and limited access to modern technology, there is growing anticipation about how the upcoming Union Budget will address these issues. Experts and leaders in the sector are urging targeted investments to improve rural infrastructure, reduce post-harvest losses, and foster innovation through agritech solutions.
One key area of focus is reducing post-harvest losses, which account for nearly 20% of India’s total agricultural output annually. Improving storage facilities, cold chains, and logistics is crucial to reducing losses and strengthening market linkages. The government’s PM GatiShakti program has shown early promise, with over 500 projects in the agricultural supply chain underway.
Agritech innovations are seen as a game-changer in Indian agriculture, with drones, artificial intelligence, and IoT offering scalable solutions. Drones, for example, can significantly reduce labor and resource consumption, while AI can optimize crop yields and reduce input costs. The government’s announcement of a dedicated agri-stack aims to consolidate farmer data for better decision-making.
Access to credit remains a significant challenge for Indian farmers, with traditional mechanisms like the Kisan Credit Card (KCC) proving insufficient for modern agricultural needs. A data-driven solution is proposed, with a repository of credit profiling for all farmers to facilitate easier access to credit for credit-worthy farmers.
Startups and MSMEs are driving innovation in agriculture, but they face challenges in scaling operations due to limited funding and policy support. A 10-year tax holiday for agritech startups and subsidies for capital expenditures could encourage innovation, while a Production Linked Incentive (PLI) scheme for MSMEs focused on agri-tools and machinery could drive growth in the sector.
Finally, the budget should focus on promoting sustainable agriculture practices, including adopting water-saving technologies, climate-resilient seeds, and soil health cards. Experts urge incentives for research and development of region-specific biological products and the adoption of soil health cards and sensor-based solutions to enhance soil preservation and overall farm productivity.
By addressing these challenges and opportunities, the Union Budget can play a vital role in paving the way for a more sustainable and innovative agricultural sector in India.