Karnataka Budget 2023: Navodaya scheme announced to encourage innovation in agriculture

Karnataka Chief Minister Siddaramaiah, presenting the first state Budget of the Congress government, said that the focus is on providing relief for inflation-affected citizens via guarantee schemes. It is the first after Congress assumed power in the state following its thumping victory in the recently-held assembly elections

CM Siddaramaiah announced the launch of the new Navodyama scheme with a budget of Rs 10 crore for value addition of agricultural produce and to encourage innovation in the field of agricultural marketing. To facilitate the selling of farmers' food in local, national, and worldwide markets, Rs 10 crore would be made available to promote branding of farmers' produce along the lines of Nandini.

In order to strengthen farmer producer organisations (FPOs), 100 FPOs in backward talukas will be given financial assistance in the form of 4 per cent interest subsidy on loans up to Rs 20 lakh each, availed from commercial and cooperative banks. Additionally,  Rs 5 crore will be provided to support FPOs start-ups and micro food processing entrepreneurs through KAPPEC. Lastly, around 300 high tech harvester hubs in a phased manner and 100 hubs will be set up during 2023-24 at a cost of Rs 50 crore.

It is the second budget of the 2023-24 fiscal year and is expected to outline the specific allocation required to fulfil the five pre-poll guarantees made by the Congress party.  This budget holds significance as it is the first since the Congress party assumed power in the state after the May 10 election. The budget will also prioritize strategies for increasing revenue generation.