Finance Minister Announces Measures To Strengthen Agri Infrastructure

In a third set of announcements, Finance Minister Nirmala Sitharaman today focused on relief measures for agriculture, animal husbandry, fisheries and allied sectors to help revive the Indian economy that’s been battered by the Covid-19 outbreak.

The minister also announced governance and administrative reforms that the Narendra Modi-led administration will undertake.

The announcements include:

• A financing facility of Rs 1 lakh crore for funding agriculture infrastructure projects. The National Bank for Agriculture and Rural Development will raise the necessary amount.
• A scheme worth Rs 10,000 crore will be launched to help 2 lakh micro-food enterprises with technical upgrades and help meet Indian food safety (FSSAI) standards.
• Matsya Sampada Yojana for fishermen, announced in the budget, being implemented immediately. Rs 11,000 crore for activities in marine, inland fisheries and aquaculture, while Rs 9,000 crore will be used for sea food infrastructure like fishing harbours, cold chain and markets.
• National animal disease control programme launched for 100 percent vaccination of cattle for foot-and-mouth disease and brucellosis. This has a total outlay of Rs 13,343 crore for five years—during 2019-24.
• An animal husbandry infrastructure fund worth Rs 15,000 crore will be set up to support private investment in dairy processing and cattle feed infrastructure. The government will incentivise setting up of plants for exports of niche products.
• Rs 4,000 crore will be spent over two years for promoting herbal cultivation. About 10 lakh hectares of land will be covered for herbal cultivation in the next two years, and this is expected to generate income of Rs 5,000 crore for farmers.
• A scheme worth Rs 500 crore will be launched for beekeeping initiatives, aimed at increasing income of 2 lakh beekeepers
• Existing ‘Operation Greens’ scheme to be extended to all fruits and vegetables with an allocation of Rs 500 crore. About 50 percent subsidy will be given on transportation from surplus to deficient markets, and 50 percent subsidy will be on storage, including cold storages.

Administrative Changes

• Essential Commodities Act, 1955, will be amended to enable better price realisation for farmers. The amendment will deregulate cereals, edible oil, oilseeds, onions and potatoes. Stock limits to be imposed under very exceptional circumstances, and no stock limits to apply to processors, value chain participants or exporters.
• To undertake agriculture marketing reforms to provide marketing choices to farmers. A central law will allow farmers to sell their produce at attractive prices, and remove barriers on inter-state trade.
• To facilitate legal framework for farmers to engage with processors, aggregators, retailers and exporters. The framework will offer risk mitigation for farmers, assured returns and quality standardisation.