FM focuses on agriculture in third tranche of relief

Finance Minister Nirmala Sitharaman announced steps to boost agriculture, infrastructure and logistics through a series of measures as part of the third leg of the COVID-19 relief package. The FM also focussed on capacity building, governance and administrative reforms for agriculture, fisheries and food processing Sectors while allocating Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure exclusively for farmers

Micro Food Enterprises (MFE) and Fishermen segments were the other sectors which received a boost from the relief package. The FM allocated Rs 10,000 crore scheme for the formalisation of MFE and Rs 20000 crore for fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY).

Rs. 15,000 crore was allocated for the National Animal Disease Control Programme along with the setting of Animal Husbandry Infrastructure Development Fund. Promotion of Herbal Cultivation was allotted a Rs 4,000 crore investment outlay from COVID relief package. The package had something for every segment, for example, it allocated Rs 500 crore for beekeeping.

The FM also announced measures for Governance and Administrative Reforms for Agriculture Sector, besides amendments to Essential Commodities Act to enable better price realisation for farmers and also initiated Agriculture Marketing Reforms to provide marketing choices to farmers and offered Agriculture Produce Price and Quality Assurance to strengthen the farming sector.

This was part of a special economic and comprehensive package of Rs 20 lakh crore announced by Prime Minister Narendra Modi- equivalent to 10% of India’s GDP on 12^th May 2020.

Sitharaman altogether announced measures to altogether strengthen infrastructure logistics, capacity building, governance and administrative reforms for agriculture, fisheries and food processing sectors.

These announcements were in addition to the two significant agriculture-related measures to support farmers that were announced earlier which included Rs 30,000 crore as Additional Emergency Working Capital facility through NABARD.

Further, during the lockdown, the demand for milk reduced by 20-25%. Accordingly, cooperatives procured 111 crore litres of total milk procured, ensuring Rs 41 000 crore of payment. Meanwhile, the government has launched a new scheme to offer interest subvention of 2 per cent per annum to the dairy cooperatives for the year 2020-21.

Additional liquidity of Rs 5,000 crore will be unlocked by this scheme, benefitting 2 crore farmers. The FM announced several measures:

• Rs 1 lakh crore as Agri Infrastructure Fund, besides financing facility for farm-gate infrastructure to the tune of Rs. 1,00,000 crore to be provided to fund agriculture infrastructure projects and aggregation points which include agriculture entrepreneurs, primary agricultural cooperative societies, start-ups, farmers producer organisations, etc.
• The impetus for development of aggregation point & farm gate, financially viable and affordable post-harvest management infrastructure.
• A Rs 10,000 crore scheme for MFE Formalisation to be launched to help over two lakh Micro Food Enterprises for their technical upgrade required to help them attain food standards conforming to FSSAI. Existing farmer producer organisations, existing micro food enterprises, cooperatives and self-help groups to be supported. The scheme’s focus will be on SC/ST and women-owned units and a cluster-based approach will be followed.
• Fisherman to be provided an amount to the tune of Rs 20,000 crore through the Pradhan Mantri Matsya Sampada Yojana (PMMSY). It is for sustainable, integrated and inclusive development of inland fisheries and marine, the PMMSY will be launched by the Government.
• For activities in inland fisheries, marine and aquaculture, Rs 11,000 crore and for infrastructure Rs. 9000 crore shall be provided. The infrastructure category in this segment includes- cold chain, harbours, fishing, markets, etc. Ornamental fisheries, cage culture, new fishing vessels as well as seaweed farming, laboratory network, traceability, etc. will be among the key activities.  70 lakh tones of additional production of fish would be produced over the next five years and over 55 lakh persons are expected to be provided employment and it will also double the exports to over Rs 1,00,000 crore. North-east and Himalayan states, aspirational districts and North-east apart from Islands will be in focus.
• National Animal Disease Control Programme for Brucellosis and Foot and Mouth Disease (FMD) launched with an outlay of Rs. 13,343 crore in order to ensure 100 per cent vaccination of buffalo, cattle, goat, sheep and pig population. 1.5 crore buffaloes and cows vaccinated till date.
• An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crore will be set up to support value addition and private investment in Dairy Processing and cattle feed infrastructure.
• 4,000 crore outlay for Herbal Cultivation promotion: Rs 4,000 crore outlay in next two years of herbal cultivation to generate Rs. 5,000 crore income for farmers. A medicinal plants corridor to be developed along the banks of Ganga and for medicinal plants a regional mandis network to be developed.
• For beekeeping initiatives an outlay of Rs 500 crore. The Government to implement infrastructure development scheme related to the collection, integrated beekeeping development centres, storage and marketing, post-harvest and storage centres and value Addition facilities, etc, leading to increase in income for 2 lakh beekeepers simultaneously with getting quality honey.
• Rs 500 crore to be invested on From ‘TOP’ to TOTAL -Ministry of Food Processing Industries (MOFPI) run “Operation Greens” will be extended from onion, tomatoes and potatoes to all vegetables and fruits and the scheme would provide 50 per cent subsidy on both storage and transportation from surplus to deficient markets. Launched as a pilot for six months, the scheme will be expanded and extended. It will lead to reduced wastage and better price realisation for farmers and the availability of affordable products to consumers.

The Finance Minister also announced a series of measures for Governance and Administrative Reforms for Agriculture Sector as follows:

1.  To enable the farmers to realise better price, the Essential Commodities Act will be amended by the Government.

2. Agriculture foodstuff which include edible oils, cereals, oilseeds, edible oils, onions, potato and pulses shall be deregulated while under very exceptional circumstances like famine, national calamities stock limit will be imposed.

3. Agriculture Marketing Reforms Aimed at providing marketing choices to the farmers the finance minister announced following agriculture marketing reforms:

a) To provide adequate choices to sell their produces at remunerative prices, formulation of a central law to offer the farmers a framework for e-trading of agriculture produce and barrier-free inter-state trade.

b) Pricing of agriculture produce and quality assurance will be provided by the government. To enable farmers to engage with large retailers, aggregators, exporters etc a facilitative legal framework to be finalised by the government in a fair and transparent manner. Assured returns and quality standardisation shall form the framework’s integral part.