COVID-19 economic package: Industry experts give mixed reactions, highlight limitations

Agriculture experts and organisations gave a mixed reaction to government's economic package announced on Thursday to help farmers ensure unhindered farm activities during this ongoing COVID-19 crisis. "Except for extension of moratorium in repayment of crop loan and providing Kisan Credit Card (KCC) to more farmers, re was no big economic package announced for farming community," Bharatiya Kisan Union (BKU) spokesperson Dharmendra Malik said in a statement.

" measures will not help farmers become self-reliant "inste will force m to commit suicide.y feel cheated by government," he ded.

" agriculture value chain needs special focus and this along with farm mechanisation industry should certainly be considered as essential service in country,"

Tractor and Mechanization Association President T R Kesavan said. Agriculture is critical to a large and populous nation like India and self-reliance (atmanirbhar) is key for food security, he said ding that technology and farm mechanisation is key to achieve this, while expecting more measures from government in future. However, or industry chambers and organisations FICCI, PwC India and Council on Energy, Environment and Water (CEEW) hailed decisions saying it would provide big support to farmers.

" initiative to boost credit of 2 lakh crore to increase coverage of 2.5 lakh farmers under KCC will surely increase credit umbrella and help increase ir liquidity issue given acute cash crunch during covid situation," PwC India's Ajay Kakra said.

"It's encouraging to see ditional liquidity support to farmers in distressing times," CEEW's Senior Programme Le Abhishek Jain said.

"We hope that government has planned for implementation of se schemes well in conjunction with state governments who will have a major role to play here," FICCI President Sangita Reddy ded. HDFC Securities MD & CEO Dhiraj Relli said again focus has been more on providing concessional credit and liquidity support rar than direct fiscal transfer except for interest subvention and free food.

measures are welcome from human suffering alleviation perspective and modus operandi could relieve feared pressure on fiscal situation. However this may not result in direct and immediate boost to demand and hence economic revival could take some time, he noted. According to him, although proliferation of schemes could have been avoided. Deepthi Maw, economist at Geojit Financial Services, said what was needed was direct cash transfer which would have supported low-income earners and farmers as y are worst hit in current situation.

She also said that like previous announcements today's are also focused on providing credit support, mainly by way of extension of existing programmes. Ashish Vaid, President of Indian Merchants Chamber (IMC), said help for three crore small and marginal farmers in ir post-Rabi and pre-Kharif season through enhanced working capital loans through NABARD is welcome. However, Wilfred Sigler of CRIF HighMark, country's first microfinance-focused credit bureau, said support to farmers by way of Rs 2 lakh crore of concessional credit through Kisan credit cards will empower and boost rural economy.

Tech-based agri marketplace AgriBazaar co-founder Amith Agarwal said government has rightfully identified agricultural sector as one of most impacted and Rs 2 lakh crore loan to farmers is a big relief to m. EY India Partner Satyam Shivam Sundaram said that concessional farm loans through KCC are a "big step" towards institutional credit to marginal and small farmers, who have hirto mostly been availing credit from informal sector at a very high rate.

Furrmore, along with e-National Agriculture Market (e-NAM), se initiatives would also facilitate farmers' option of market transactions for inputs, farm mechanisation, and sale of produce, reby, ensuring a higher share of income for farmers, he said. Toyota Kirloskar Motor (TKM) said second tranche of stimulus package will help in reviving agriculture sector at grass-roots level besides playing an instrumental role in reviving demand and opening new avenues for or industries.

" schemes introduced for farmers as part of 'Atmanirbhar Bharat Abhiyan', will definitely help in reviving agricultural sector at a grass-root level. COVID-19 has clearly derailed livelihoods of many people, se schemes will grually help in ameliorating disruptions caused in lives of common people," said Naveen Soni, Senior Vice President, Sales and Services, Toyota Kirloskar Motor.