Govt plans for agriculture will fuel innovation and sustainable farming, say stakeholders in agritech industry
In the Union Budget 2025, the Finance Minister unveiled plans to set up a Makhana board in Bihar and measures to promote crop diversification, enhance irrigation facilities, and improve credit availability for farmers.
The government's announcements for the agriculture sector will fuel innovation of value-added products and promote sustainable farming, say stakeholders in the agritech industry.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced a slew of initiatives aimed at boosting agriculture and rural development. One of the highlights was the establishment of a National Institute of Food Technology, Entrepreneurship, and Management in Bihar, designed to promote food processing and innovation in the region.
Sitharaman also unveiled plans to set up a Makhana board in Bihar. This board will focus on enhancing production, processing, value addition, and marketing of makhana, a crop with significant local importance. It will also offer support to farmers through training programmes and ensure they benefit from relevant government schemes.
Similarly, Subhadeep Sanyal, Partner at Omnivore, an agritech investor, noted, "Makhana has long been a favourite among health-conscious consumers, and with Bihar emerging as a hub for its production and processing, startups like Farmley can benefit from improved supply chain efficiency, quality sourcing, and export potential."
He added, "This policy move will not only uplift farmers but also fuel innovation in value-added products, driving the growth of India's healthy snacking industry. With rising global demand for clean-label, nutrient-dense snacks, this initiative can position Indian brands on the world stage while strengthening the agrifood startup ecosystem."
Akash Sharma, Founder and CEO of Farmley, a producer of Makhana products, said, "The board's formation will streamline the entire value chain: from production and processing to value addition and marketing of fox nuts. For farmers engaged in makhana cultivation, this initiative opens doors to skill development and institutional support, creating a win-win ecosystem."
Sitharaman also announced measures to promote crop diversification, enhance irrigation facilities, and improve credit availability for farmers.
These initiatives align with the Centre's broader objectives of agricultural growth, strengthening rural economies, and supporting micro, small, and medium enterprises.
"As investors, we're particularly excited about the potential for building scalable enterprises that bridge the urban-rural divide and create sustainable livelihood opportunities across the value chain," remarked Abhilash Sethi, Investment Director Omnivore
Additionally, the government has set its sights on achieving self-reliance in pulses within the next six years.
Sitharaman also introduced the Dhan-Dhaanya Krishi Yojana, a partnership initiative with state governments aimed at boosting productivity, crop diversification, post-harvest storage, irrigation, and facilitating credit for 1.7 crore farmers.
"By targeting 100 low-productivity districts, this initiative aims to support crop diversification, improve storage facilities, enhance irrigation, and expand credit access for farmers. These steps are essential for promoting sustainable farming practices and increasing the availability of nutritious, clean-label foods for consumers," said Gaurav Manchanda, Founder and Director, The Organic World, a retailer of organic products.
In response to the Finance Minister's proposals, agri-related stocks saw a surge on the stock market.
(The copy was updated.)
Edited by Swetha Kannan