Centre rolls out 11 measures for farmers, fishermen & animals in third economic tranche

The Centre rolled out its third tranche of economic measures with 11 announcements on Friday. Finance Minister Nirmala Sitharaman announced 11 measures - of which 8 of them focused on strengthening infrastructure, capacities and building better logistics in Agriculture, Fisheries and animal husbandry, while the rest 3 pertained to governance and administrative reforms. Agricultural reforms included rolling out schemes to finance farming infrastructure, micro food enterprises, fishermen, animal health, dairy infrastructure, herbal cultivation, bee-keeping and food supply chain management. The other three measures included amendment to Essential Commodities Act, Central law for Agriculture marketing reforms and e-trading of agriculture produce.

Agriculture infrastructure

• Rs. 1 lakh crore for farm gate infrastructure (to be done immediately)

A finance facility of Rs 1 lakh crore for farm aggregators, FPOs for strengthening the farm gate infrastructure by funding Agriculture Infrastructure Projects, agriculture entrepreneurs and post-harvest management infrastructure.

• Rs 10,000 crore scheme for formalisation of Micro Food Enterprises

The fund for micro food enterprises (MFE)  will help 2 lakh MFEs using technical up-gradation, building brands, marketing. A cluster-based approach on a state-basis (Eg: mango in UP, Kesar in J&K, Bamboo shoots in NE, Chilli in Andhra, etc) will be used and the government expects improved health and safety standards, improve incomes and tap into export markets amid improved health consciousness. The focus will be to help the MFEs to become brands and reach the global level.

• Rs 20,000 crore for Fishermen through PM Matsya Sampada Yojana

Executing the scheme launched in the Budget 2020 immediately, the PM Matsya Sampada Yojana allots Rs 11,000 crore for marine, inland fisheries and agriculture. Rs 9000 crore for infrastructure including fishing harbours, cold chain, markets etc. Govt will lead to additional fish production of 70 lakh tonnes over 5 years and provide 55 lakh people and double exports to Rs 1,00,000 crore. The main focus to be on Islands, Himalayan states, NE & Aspirational districts.

• National Animal Disease Control Programme launched

Ensuring 100% vaccination of cattle, buffalo, sheep, goat & pig population which will cover 53 crore animals. The programme has an outlay of  Rs 13,343 crores since January 2020. Till date, 1.5 crore cows and buffaloes tagged and vaccinated.

• Rs 15,000 crore to be spent for dairy infrastructure

 An Animal Husbandary Infra Fund of Rs. 15000 crore will be set up to support private investment in dairy processing and cattle feed infrastructure. The incentive will be given for establishing plants which export niche (world-class) products.

• Rs 4000 Crore for Promotion of Herbal Cultivation

The National Medicinal Plants Board (NMPB) has supported 2.25 lakh hectare area for medical plant cultivation. Additional 10,00,000 hectare will be covered with the Rs 4000 crore fund in the next two years. Focusing on Ganga, NMPB will bring the 800-hectare area by developing a corridor of medicinal plants along the banks of Ganga.

• Rs 500 crores for bee-keeping initiatives

Beekeeping increases yield & quality of crops, hence govt will implement a Rs 500 crore scheme to aid honey production and wax production, marketing, storage etc. This will increase the income of 2 lakh beekeepers.

• Rs 500 crore 'Top' to total initiative

Operation Greens to be extended from tomatoes, onion and potatoes to all fruits and vegetables. The scheme includes 50% subsidy on transportation from surplus to deficient markets and 50% subsidy on storage including cold storages on a pilot basis for 6 months.

Governance reforms

• Amendment to Essential Commodities Act

The government will amend the  Essential Commodities Act which was enacted in 1955 to enable better price realisation for farmers by attracting investments - making agriculture sector competitive. Agriculture food stuff including cereals, edible oils , oilseeds, pulses, onions and potato to be deregulated. Stock limit to be imposed under very exceptional circumstances and no such stock limit shall apply to processors or value chain participant.

• Agriculture marketing reforms to provise marketing choices

Govt will bring agriculture marketing reforms to provide marketing choices to farmers via a Central law to provide:

• Adequate choices to farmer to sell product at attractive price
• Barrier free inter-state trade 
• Framework for e-trading of agriculture produce

• Agriculture produce price and quality assurance

Govt of india will create legal framework that will enable farmers for engaging with processors and aggregators , large retailers , exporters in a transparent way. Risk mitigation for farmers , assured returns and quality standardization shall form integral part of the framework.