Nirmala Sitharaman Announces Rs 1 Lakh-Crore Farm Infra Fund In Third Set Of Measures: Highlights

Finance Minister Nirmala Sitharaman on Friday announced a Rs 1 lakh-crore agriculture infrastructure fund as part of the government's measures to battle the economic fallout from the coronavirus (COVID-19) pandemic and the weeks-long lockdown. Nirmala Sitharaman said the government will amend the Essential Commodities Act to ease restrictions on the trade of farm products. The Finance Minister was providing details of the second set of measures under the government's "Atma Nirbhar Bharat" economic package to support the economy against the outbreak. On Thursday, the Finance Minister had said the government will provide farm loans worth Rs 30,000 crore as additional emergency working capital to the farmers through farm sector lender NABARD. The measures are part of the fiscal and monetary package worth Rs 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday to support the economy, which has been battered by the ongoing lockdown to curb the spread of the deadly COVID-19 disease. 

Here are highlights of the Finance Minister Nirmala Sitharaman's third set of measures under the "Atma Nirbhar Bharat" economic package:

• Today's measures focus on agriculture and allied activities (fisheries, dairy, animal husbandry etc.) and food processing
• Largest portion of population depends on agriculture even now; 85% of agricultural land in country held by small farmers
• Farmer has against all adversities stood up, farmers has managed rabi harvest despite lockdown; India remains largest producer of milk, jute, pulses 
• 11 measures to be announced today, out of which, 8 on agricultural infrastructure (storage, logistics etc.); remaining 3 on government and administrative reforms
• During lockdown (March-April)
  • purchases worth over Rs 74,300 crore made at minimum support price (MSP)
  • transfers of Rs 18,700 crore made to farmers' accounts through PM KISAN Samman scheme
  • Rs 6,400-crore claims cleared under PM Fasal Bima scheme
  • milk demand came down 20-25%, 560 lakh litre per day procured by cooperatives vs sale of 360 lakh litre per day
  • new scheme utilised to provide 2% interest subvention to dairy cooperatives (2020-21)
  • scheme provided Rs 5,000-crore additional liquidity to 2 crore farmers 
• TODAY'S ANNOUNCEMENTS: 1) Rs 1 lakh crore fund created for strengthening farm gate infrastructure (for aggregators, farmer producer organisations, primary agriculture cooperative societies etc.) to support farmers; fund to be created immediately
  • fund includes cold storage, post harvest management infrastructure, storage centres 
• 2) Rs 10,000 crore scheme to be launched with cluster-based approach for formalisation of micro food enterprises (MFEs); 2 lakh MFEs to benefit
• 3) Rs 20,000 crore support for fishermen through PM Matsya Sampada (PMMSY) scheme (for development of fisheries), for addressing gaps in fisheries value chain
  • Scheme to include Rs 11,000 crore for marine, inland fisheries, aquaculture activities
  • Rs 9,000 crore for fishing harbour, cold chain, market-related infrastructure
  • Move expected to provide employment to more than 55 lakh
• 4) National Animal Disease Control Programme launched with outlay of Rs 13,343 crore, to ensure 100% vaccination of cattle (53 crore animals to benefit)
  • 1.5 crore cows and buffaloes already vaccinated
• 5) Rs 15,000-crore Animal Husbandry Infrastructure Development Fund to be set up, to support dairy infrastructure
• 6) Rs 4,000 crore towards promotion of herbal cultivation, to generate Rs 5,000-crore income for farmers
• 7) Rs 500-crore support for bee-keeping, to benefit more than 2 lakh keepers
• 8) Operation Greens scheme to be extended from tomato, onion, potato to all fruits and vegetables; pilot project for six months
  • Support of Rs 500 crore for this scheme
  • Scheme to provide better price to farmer, reduce wastage, make products more affordable for consumer
• GOVERNANCE AND ADMINISTRATIVE REFORMS: 9) Essential Commodities Act, 1955 to be amended to ensure deregulation of onion, potato, edible oil, pulses, cereal
• 10) Law to be formulated to provide adequate choices to farmer to sell produce at attractive price, to ensure barrier-free interstate trade
• 11) Farmers do not have a standard mechanism for getting a predictable price and sale for produce; farmer sows with uncertainties
  • Government working on legal framework to ensure certainty for farmer prior to sowing stage (well before every season)
  • Move to mitigate risk for farmer, assure returns