Sitharaman announces Rs 1 lakh crore for agricultural infrastructure

New Delhi: In the third tranche of Rs 20 lakh-crore package announced by the prime minister, Finance Minister Nirmala Sitharaman on Friday came up with an 11-point plan for farmers' welfare, fisheries and food processing.

Govt to amend Essential Commodities Act

The government will amend the six-and-a-half-decade old Essential Commodities Act to deregulate food items, including cereals, edible oil, oilseeds, pulses, onion and potato.

The amendment, besides deregulating production and sale of food products, will provide for no stock limit to be imposed on any produce.

A stock limit will be imposed only under very exceptional circumstances like national calamities, famine with a surge in prices.

Also, no stock limit shall apply to processors or value chain participants.

Agriculture marketing reforms will be done to provide marketing choices to farmers.

Rs 1 lakh crore for agri-infra fund

Rs 1 lakh crore agri-infrastructure fund allotted for farm-gate infrastructure.

This fund will be used for setting up cold chains and post-harvest management infrastructure, she said while announcing the third tranche of COVID-19 relief package.

She also announced a Rs 10,000 crore scheme for formalisation of micro food enterprises (MFE).

The scheme will be launched to help 2 lakh MFEs by adopting cluster-based approach such as mango in Uttar Pradesh, kesar in Jammu & Kashmir, bamboo shoots in North-East, chilli in Andhra Pradesh, tapioca in Tamil Nadu.

This fund would help in reaching untapped export markets in view of improved health consciousness.

Rs 20K-crore bonanza for fishermen

The Centre on Friday allocated Rs 20,000 crore for fishermen through the Pradhan Mantri Matsya Sampada Yojana (PMMSY).

Critical gaps in the value chain will be filled through the Yojana. The government will launch the PMMSY for "integrated, sustainable, inclusive development of marine and inland fisheries", said the Finance Ministry.

As much as Rs 11,000 crore out of Rs 20,000 crore is kept for activities in marine, inland fisheries and aquaculture. Meanwhile, the rest of Rs 9,000 crore is for creating infrastructure such as fishing harbours, cold chains and markets.

This will benefit some key activities such as cage-cutter, seaweed farming, ornamental fisheries, as well as new fishing vessels and their traceability, said Sitharaman.

This ramping up of the infrastructure is likely to lead to additional fish production of 70 lakh tonne over the next five years, believes the government. The government has also talked about personal insurance of fishermen and their boats which may make their life a bit easier, after the lockdown.

Moreover, these efforts will lead to employment generation of as much as 55 lakh individuals, the Finance Ministry estimated. It will double the exports to Rs 1,00,000 crore, said the Centre.

New scheme for dairy industry

A new scheme is being introduced to offer lower interest rates to dairy cooperatives.

The interest subvention scheme will continue and will put additional Rs 5,000 crore in the hands of two crore farmers, the FM said.

Milk was being thrown on streets since consumers were unable to buy it during lockdown. During this time, 560 lakh litre/day milk was procured by cooperatives in which farmers were paid Rs 4,100 crore.

The government announced Rs 15,000 crore for dairy infrastructure, besides a livestock development programme.

Key announcements:

Infrastructure Capacity building

• Rs 1 lakh crore agri-infrastructure fund for farm-gate infrastructure.

• Rs 10,000 crore scheme for formalisation of micro food enterprises.

• Rs 20,000 crore for fishermen through Pradhan Mantri Matsya Sampada Yojana for integrated, sustainable, inclusive development of marine and inland fisheries. Among this, Rs 11,000 crore is for activities in marine, inland fisheries and aquaculture. Rs 9,000 crore for infrastructure like fishing harbours, cold chain, markets etc.

• National Animal Disease Control programme to be launched with focus on Foot and Mouth disease and vaccination of cattle, buffalo, sheep goat and pig.

• An Animal Husbandry Infrastructure Development Fund if Rs 15,000 crore to be set up.

• 10 lakh hectare will be covered under herbal cultivation in next two years with outlay of Rs 4,000 crore. This will lead to Rs 5,000 crore income generation for farmers.

• Rs 500 crore allocated for beekiping initiatives. This will lead to increase in income of Rs 2 lakh beekeepers and quality honey to consumers.

• 'Top' to 'total' scheme: Operation Greens to be extended from Tomatoes, Onions and Potatoes (top) to all fruits and vegetables (total). Will provide subside on transportation and storage.

Governance and Administrative Reforms

• Amendments to Essential Commodities Act to enable better price realisation for farmers. Food stuff including cereals, edible oil, oilseeds, pulses, onions and potato to be deregulated.
• Agriculture marketing reforms to provide marketing choices to farmers. Under this a central law will be formulated for barrier free inter-state trade and e-trading of agricultural produce.

• Agricultural produce price and quality assurance for farmers

Steps already taken during the lockdown period:

• Minimum support price purchases of more than Rs 74,300 during the two months of lockdown.

• PM Fasal Bima Yojana claims payment of Rs 6,400 crore cleared in the last two months.

• 560 lakh litres of milk procured by cooperatives during the lockdown period.

• Total 111 crore litres extra procured ensuring payment of Rs 4,100 crore.

• All COVID-19 related announcements for fisheries implemented, including registration of 242 shrimp hatcheries, operations of marine capture fisheries and aquaculture relaxed to cover inland fisheries etc.

Prime Minister Narendra Modi earlier this week announced a cumulative package of Rs 20 lakh crore (nearly 10 per cent of GDP) to provide relief to various segments of the economy battered by coronavirus lockdown.

This included Rs 1.7 lakh crore package comprising free foodgrain and cash to poor for three months announced in March, and Rs 5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).

Of the remaining, the government has made two tranches of announcements with a cumulative package of Rs 9.1 lakh crore, comprising largely of credit lines to smaller firms, concessional credit to farmers and support to shadow banking and electricity distributors.

Most of the first two tranches of the package are off-budget and the government cash outgo is limited to just Rs 16,500 crore on free foodgrain and affordable housing to migrant workers as well as limited tax relief and marginal dole to some companies on employee retrial benefits.

India had - beginning March 25 - imposed a three-week-long nationwide lockdown, the most far-reaching measure undertaken by any government to curb the spread of the pandemic.

The lockdown, which brought most of the economic activity to a standstill as factories and businesses shut while rendering thousands temporarily unemployed, has since been extended twice through May 17, with some relaxations to allow the resumption of economic activity.

According to estimates, the lockdown may have led to 12.2 crore people losing jobs in April and consumer demand evaporating.