Daijiworld Media Network - New Delhi (SHP)
New Delhi, May 15: Finance Minister Nirmala Sitharaman began announcement for the third tranche of the economic stimulus package of Rs 20 lac crore on Friday, May 15. She stated that the present presser would be focusing on agriculture and allied sectors.
The FM began appreciating the Indian farmers who have ensured a steady flow of produce despite the odds. The farmers have propelled India onto the global platform, where the country is known for being the largest cereal producers even if the farmers have smallholdings.
Over 11 measures were announced concerning the Agri and allied services in the presser by the Finance Minister. Among which eight measures were related to strengthening infrastructure, increasing capacities, money allocation, and three on governance and administrative reforms.
Finance Minister Nirmala Sitharaman informed the media that the government procured farm produces worth Rs 74,300 crore (as per Minimum Support Price) to improve liquidity for farmers. She also said that funds transfer worth Rs 18,700 crore had been done under PM-KISAN Samman Yojna in the past 2 months and PM KISAN Bima Yojna claims totalling to Rs 6,400 crore had been cleared in last 2 months. Sitharaman asserted that a large amount of milk was also procured amid lockdown.
Sitharaman also announced Rs 1 lac crore for aggregators, FPOs, agro co-op societies, to strengthen farm-gate infrastructures, such as cold chain, storage centres, yards and harvest facilities.
The government has further approved Rs 10,000 crore to food enterprises that are micro in size. The Centre is considering a cluster-based approach, which would help the local value-added produce reach the global markets. For instance, Kashmir could focus the funds on saffron, Telangana can empower turmeric farmers, while Bihar can focus on lotus seeds. Over 2 lac MSMEs are expected to benefit from this measure. She also maintained that additional focus will be laid on promoting women, SCs and STs involved in the cultivation of these items.
Over Rs 10,000 crore fund will help MFEs market to the world India’s organic, herbal, nutritional, health-based items, in which the country has great strength, the FM said.
To double India's exports up to Rs 1 lac crore, the PM-Matsya Sampada Yojana will be employing 55 lac people, she added. Further, the Finance Minister announced Rs 20,000 crore package to procure 70 lac tonnes of additional fish production in the next five years under Matsya Sampada Yojana.
The FM also ensured 100 per cent vaccination for foot and mouth disease of animals to help milk-related producers and animals, this would reportedly cost the government over Rs 13,343 crore.
Sitharaman in another announcement said that over Rs 15,000 crore will be spent for dairy infrastructure and that private investment would be allowed to contribute to the dairy infrastructure development fund.
The Centre also announced a funding of Rs 4,000 crore to promote herbal cultivation in India. Over 2.25 lac hectare area which is under the promotion of herbal plants will be significantly increased to 10 lac hectare for the next two years. It would help the related farmers earn Rs 5,000 crore more, the Finance Minister said.
She also announced the allocation of Rs 500 crore for beekeeping, this move will benefit over 2 lac beekeepers in the rural areas and the package been devised as a means to elevate the rural economy.
The Centre also made an announcement related to the extended Operation Greens from Tomatoes, Onion and Potatoes (TOP) to all fruits and vegetables. Operation Greens was a project aimed to stabilise the supply of Tomato, Onion and Potato crops (TOP crops) in India, as well as to ensure their availability around the country, year-round without price volatility.
The FM also asserted that the government will amend the Essential Commodities Act to enable better price realisation for farmers. Agriculture food stuff including cereals, edible oils, oilseeds, pulses, onions and potato will be deregulated. The government would implement a central law for farmers so that they sell their produce across different states in the country. The farmers will be able to sell their produce at attractive prices by e-trading to even those who do not have licenses. "Right now, farmers are bound to sell agricultural products only to licensees in APMCs. Such restriction of sale is not there for any industrial produce. This restriction results in hindrance in the free flow of agricultural produce. It also results in less price realisation for farmers," she added.
Sitharaman further announced Rs 500 crore to mend the broken supply chains. This would entail a 50 per cent subsidy on transportation from surplus to deficient markets and 50 per cent subsidy on storage, including cold storages.
Towards the end of the presser, Sitharaman stated that since last October, the government has been continuously reviewing the debt of MSMEs.
She concluded saying that PM Garib Kalyan package will be announced immediately post lockdown.