Union budget 2022 allocation for the food industry

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Finance Minister Nirmala Sitharaman announced the Union budget 2022 food budget for the financial year of 2022-23. Since the budget 2022 has given us enormous opportunities towards MSMEs, based on that we have decided to interpret it in a simpler manner & would like to assist you on how the food industry, farmers, & Agri-tech start-ups are benefited from the declared schemes in this year.

The finance minister has given more importance to the farmers & has introduced new developments which include ‘Kisan Drones’ for crop assessment, digitization of land records and spraying of insecticides & natural farming to be promoted in India. Along with facilitating a fund with blended capital raised under the co-investment model through Nabard to finance Agri start-ups and rural enterprises.

Highlights of Union budget 2022 allocation for the food industry

  • The Indian government will be promoting the use of Kisan Drones for crop assessment, digitization of land records, & spraying of insecticides. 
  • Facilitate a fund with capital raised under the co-investment model in partnership with Nabard to finance agriculture-related start-ups and rural enterprises.

Finance Minister Nirmala Seetharaman quoted “This is to finance start-ups for agriculture and rural enterprise relevant for farm produce value chain,”

Union budget 2022 chemical-free farming

“Natural farming will be benefited for almost 80% of farmers in India, who have low budget investment and less than two hectares of agricultural land, it would help them spending on chemical requirements. Using natural fertilizers will always benefit them with low expenditure and more profit,”

  • Natural and chemical-free farming is an agricultural approach that supports healthy products & can expect less harm from components that are used in the process for both humans & nature.
  • Using fewer chemicals, while farming & use only organic which helps the vitality of the soil & enrich its inherent power. “which is called fertilizer-free cultivation”
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Union budget allocation for agriculture sector

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  • Kisan Drones” to help farmers assess crops, digitize land records as well as spray insecticides and nutrients.
  • By using drones could reduce human exposure to poisonous chemicals.
  • It could help in digitizing land records. Drones will survey & capture the land, as the government proposed, and officials can use the data to match with respective information, according to the plan.
  • The FM mentioned the Indian government will promote start-ups through its “Drone Shakti” initiative. It will ease the use of drones as a service.
  • And activities of the start-ups would be inter-area assistance for farmer producer organizations (FPOs), machinery on a rental basis at the farm level & technology.
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  • Drone services are used for the delivery of digital & high tech services to farmers & FM mentioned that the Indian government will launch a scheme of Public-Private Partnership (PPP) model in partnership with public sector research and extension institutes along with private agri-tech players & stakeholders of Agri value chain.
  • Drone services is an evolving market that finds space in agriculture, construction, search and rescue, package delivery, industrial inspection, insurance, and videography. 
  • The Union Civil Aviation Ministry has estimated India’s drone sector’s turnover would reach from Rs. 8,000 lakhs, as per 2021, to Rs 12,000-15,000 crore by 2026.

Rs 2.37 lakh crore allocated for procurement of wheat and paddy

  • Union FM Nirmala Sitharaman said that the government will pay Rs 2.37 lakh crore towards procurement of wheat & paddy under MSP operations.
  • Also, fiscal 2022-23 has been announced as the “Year of Millets”
  • The Indian government will assist post-harvest support for increase domestic consumption of millet products internationally, said FM.

Union budget 2022 allocation for the food industry has given an opportunity for new beginnings, also a chance to open up & expand their horizons.

And our CTO, Guruprasad Bangle quoted “Union Budget 2022 has literally given wings to the food industry, so fly high & touch the sky”.

If you would want to know how Union Budget 2022 is beneficial for your food industry.

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