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New Delhi : Union Finance & Corporate Affairs Minister Nirmala Sitharaman on May 15, 2020, at a press conference, announced the 3rd Tranche of measures to strengthen Infrastructure Logistics, Capacity Building, Governance, and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors. Sitharaman said that out of these 11 measures, 8 measures are for improving agricultural infrastructure and 3 measures are for administrative and governance reforms including removing restrictions on sale and stock limits of farm produce.
The FM said that two significant Agriculture-related measures were also announced on May 14, 2020, to support farmers. Rs 30,000 crore as Additional Emergency Working Capital facility through NABARD to enable RRBs and Cooperative Banks extending farm loans for Rabi post-harvest and Kharif expenses. And second was a mission-mode drive to enable Rs 2 lakh crore credit boost to the farm sector by covering 2.5 crore PM-KISAN beneficiaries under Kisan Credit Card Scheme by December 2020.
Outlining what the Government has done over the last 2 months, the Finance Minister said that during lockdown period. Minimum Support Price (MSP) purchases of more than Rs 74,300 crore, PM KISAN fund Transfer of Rs 18,700 crore, and PM Fasal Bima Yojana claim payment of Rs 6,400 crore have been made, she added.
Further, during Lockdown, Demand of Milk reduced by 20-25%. Accordingly, 560 Lakh litre per day (LLPD) were procured by cooperatives against daily sale of 360 LLPD. Total 111 crore litres of milk extra procured ensuring payment of Rs 4,100 crore.
Further, a new scheme to provide interest subvention @2% per annum to dairy cooperatives for 2020-21 has been launched, also providing additional 2% p.a interest subvention on prompt payment/interest servicing. This scheme will unlock Rs 5,000 crore additional liquidity benefitting 2 crore farmers.
Sitharaman said that the announcements made today will provide long-term and sustained impact on lives of farmers, fishermen, food processing micro enterprises. She announced the following measures to strengthen Infrastructure Logistics and Capacity Building for Agriculture, Fisheries and Food Processing Sectors: Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers. Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups, etc.) : Rs 10,000 crore scheme for Formalisation of Micro Food Enterprises (MFE) – A Scheme promoting vision of PM Narendra Modi: ‘Vocal for Local with Global outreach’ will be launched to help 2 lakh MFEs who need technical upgradation to attain FSSAI food standards, build brands and marketing. Existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be supported. The focus will be on women and SC/ST owned units and those in Aspirational districts and a Cluster based approach (e.g. Mango in UP, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed; Rs 20,000 crore for fisherman through Pradhan Mantri Matsya Sampada Yojana (PMMSY); National Animal Disease Control Programme; Animal Husbandry Infrastructure Development Fund – Rs. 15,000 crore; Promotion of Herbal Cultivation: Outlay of Rs. 4,000 crore; Beekeeping initiatives – Rs 500 crore.
The FM also announced following measures for Governance and Administrative Reforms for Agriculture Sector : Amendments to Essential Commodities Act to enable better price realisation for farmers – The Government will amend Essential Commodities Act. Agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potato shall be deregulated. Stock limit will be imposed under very exceptional circumstances like national calamities, famine with surge in prices. No such stock limit shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand. 2. Agriculture Marketing Reforms to provide marketing choices to farmers.