NEW DELHI: After relief measures for small businesses, shadow banks, migrant labourers, street vendors and small farmers, Union Finance Minister Nirmala Sitharaman on Friday announced Rs 1.63 lakh crore package for agriculture, fisheries and allied activities, and paved the way for amendment of Essential Commodity Act and interstate trade for farmers.
Experts pointed out that while many announcements of the third tranche of Rs 20 lakh crore stimulus package to stave off COVID-19-induced crisis were an extension of what the government had already provided in the previous budget, the amendment of six-and-a-half-decade-old Essential Commodities Act will go a long way for agriculture sector reforms.
"The amendment of the Essential Commodities Act and the agricultural marketing reforms proposed by the finance minister are indeed heartening. We hope that the states will fall in line with these changes," said CII secretary general Chandrajit Banerjee.
The finance minister also announced that a central law that allows farmers to sell their products as per their choices and also allows interstate trading will be brought about. "A central law will be formulated to provide adequate choices to farmers to sell produce at attractive prices, barrier-free interstate trade and a framework for e-trading of agriculture produce," Sitharaman said.
This will give freedom to farmers to sell their produce "wherever" and to "whoever" without restrictions on selling only to licensees in Agricultural Produce Market Committees or mandis.
A Rs 1 lakh crore farm-gate infrastructure fund for farmers, which will finance projects at farm-gate and aggregation point for efficient post-harvest management of crops was announced, along with another Rs 15,000 crore Animal Husbandry Infrastructure Development Fund to support investments in dairy processing, value addition and cattle feed infrastructure. The announcements also included Rs 13,343 crore to ensure 100 per cent vaccination of all livestock against foot and mouth disease.
A corpus of Rs 10,000 crore will be provided through Pradhan Mantri Matsya Sampada Yojana to help fishermen establish cold storage chains and promote exports. This was mentioned in the budget, but the FM said it is set for immediate execution .
Sitharaman added that Operation Greens will be extended from tomato, onion and potato to all fruit and vegetables by providing 50 per cent subsidy on transportation and storage of these commodities, which will prevent any distress sale by farmers.
According to experts, the Centre has so far announced measures up to Rs 16.04 lakh crore and Friday’s announcement will make it about Rs 18 lakh crore.