Boosting Agri-Exports: Budget for Infrastructure, Crops, and Ag-Tech

About 1.9% of entire Union Budget for FY24 was allotted by the government to the Agriculture & Allied sector, & another 1.3% went toward PM KISAN Yojana support for small & marginal farmers.

Gross Value Added (GVA) of agriculture & related industries is projected to reach approximately US$ 275 billion in FY23, making up 15% of country's overall GVA. Industry has grown at about 4% CAGR over last five years, which ends in FY23.

About 1.9% of entire Union Budget for FY24 was allotted by government to Agriculture & Allied sector, & another 1.3% went toward PM KISAN Yojana support for small & marginal farmers. About 8.3% went into large subsidies, which included subsidies for food, fertilizer, & gasoline.

Overview of the sector's current issues in food & Agriculture:

A significant obstacle facing Indian agriculture industry is relatively poor productivity of farmers, namely high number of marginal & small-scale farmers who have restricted access to technology & funding. Rainfall is necessary to irrigate more than half of India's arable land, which has immediate impact on farmer production & earnings.
Farmers lack tools they need to increase productivity or effectively combat bad weather, pests, & diseases due to limited access to finance & technology. To make matters worse, inadequate storage, incorrect handling, damage from insects & other pests, & transportation infrastructure can cause post-harvest losses. This problem is further compounded by complex & disjointed supply chain that involves multiple middlemen.

Expectations & suggestions from Sector:

Improving Food Processing Industry in India for Long-Term Development: Expectations are focused on fortifying food processing value chain, as Indian food processing market is estimated to reach US$ 535 billion by 2025–2026 at compound annual growth rate of over 15%. Through programs like Pradhan Mantri Kisan Sampada Yojana (PMKSY) & Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME), government has taken steps to grow industry. 

Reducing Post-Harvest Losses Through Infrastructure Improvements: Significant post-harvest losses are experienced by Indian Agri Value Chain, particularly for perishable crops. main goals are to improve transportation networks, as well as storage & grading facilities, by utilizing current programs such as Agriculture Infrastructure Fund (AIF) & Mission on Integrated Development of Horticulture (MIDH). 

Opening door for adoption of agri-tech: Agricultural industry expects digital adoption boom, with agri-tech market projected to reach US$ 13.5 billion valuation by 2023. Initiatives from government, such as National Agriculture Market (e-NAM) Scheme, Digital Agriculture Mission, & Digital Public Agriculture Infrastructure, are designed to encourage agri-entrepreneurs & promote farmer-centric solutions, hence accelerating growth of agri-tech.

Enhancing Agricultural Exports: From FY18 to FY23, India's agricultural exports grew at compound annual growth rate (CAGR) of 6.6%, reaching US$ 52.5 billion. This underscores need to concentrate on enhancing export environment. Interventions such as reinforced post-harvest infrastructure with digitally integrated supply chains, demand-driven production through regular market identification, adherence to global quality standards, & agricultural promotion incentives should be prioritized.

To Summarize

Proposed efforts have the capacity to empower farmers through reduction of losses, augmentation of income, & promotion of technical improvements. Concurrently, they seek to support expansion of agribusinesses by streamlining processes, expanding market accessibility, & elevating local produce to status of internationally recognizable brand. Accepting these predictions illustrates future in which Indian agriculture prospers by efficiency, creativity, & broadened perspectives.