India: Finance Minister Announces Relief Package Details And Breakup of Funds For All Industries

nykdaily-arushisana-nirmala-sitharaman-relief-package

In the third tranche of Rs 20 lakh-crore package announced by the Prime Minister, Finance Minister Nirmala Sitharaman on Friday came up with an 11-point plan for farmers” welfare, fisheries and food processing.

The third tranche of measures being announced today focuses on agriculture and allied activities, including fisheries, said the Finance Minister.

The government announced Rs 1 lakh crore for aggregators and startups in agriculture sector, including warehouse and cold chains. The benefit will also go to farmers” cooperatives.

The government also announced Rs 10,000 crore for cluster-based manufacturing for nutritional products in which 2 lakh MFI will benefit, for example, Kashmir can have ”Kesar” and Bihar can have ”Makhana” clusters.

India is the largest milk producer, largest jute and pulses producer, second largest in sugarcane, cotton, groundnut, fruits, vegetables and fisheries and third in cereals. Indian farmer has really endured and made sure that he would give us the highest yield, said Sitharaman.

The Finance Minister said it goes to the credit of the Indian farmer who has always stood up to various challenges and has made India reach certain global benchmarks.

Finance Minister Nirmala Sitharaman on Friday announced that the Centre will set up a Rs 1 lakh crore agri infrastructure fund for farm-gate infrastructure for farmers.

Addressing the media here, she said that financing facility of Rs 1 lakh crore will be provided for funding in agriculture infrastructure projects at the farm-gate and aggregation points such as primary agricultural cooperative societies, farmer producer organisations and agriculture entrepreneurs, among others.

This will provide impetus for development for farm-gate/aggregation point affordable and financially viable post harvest management infrastructure, she said.

Observing the lack of adequate cold chain and post harvest management infrastructure in the vicinity of farm gate causes gaps in value chains, Sitharaman said that the fund will be created immediately.

The announcement is part of the third tranche of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.

Finance Minister Nirmala Sitharaman on Friday said that the Centre will launch a Rs 10,000 crore scheme for formalisation of micro food enterprises (MFEs).

Addressing the media here, Sitharaman said that the scheme is in line with Prime Minister Narendra Modi”s call of ”Vocal for Local” with global outreach.

The scheme will help 2 lakh MFEs attain FSSAI gold standards, build brands and boost marketing.

Under the scheme, cluster-based approach would be taken up for products such as mangos in Uttar Pradesh, saffron in Jammu & Kashmir among others.

As per the government, the decision will lead to improved health and safety standards, integration with retail markets, and improved incomes.

It is also likely to help in reaching untapped export markets in view of the improved health consciousness.

The minister has also announced that the Centre will set up a Rs 1 lakh crore agri infrastructure fund for farm-gate infrastructure for farmers, to provide impetus for development for farm-gate and aggregation points, affordable and financially viable post harvest management infrastructure.

The announcements are part of the third tranche of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.

Finance Minister Nirmala Sitharaman while announcing the third tranche of the Prime Minister”s Rs 20 lakh-crore economic package, said a new scheme is being introduced to offer lower interest rates to dairy cooperatives.

The interest subvention scheme will continue and will put additional Rs 5,000 crore in the hands of two crore farmers, the FM said.

Milk was being thrown on streets since consumers were unable to buy it during lockdown. During this time, 560 lakh litre/day milk was procured by cooperatives in which farmers were paid Rs 4,100 crore.

The government announced Rs 15,000 crore for dairy infrastructure, besides a livestock development programme.

The Finance Minister said the government made Rs 74,300-crore Minimum Support Price (MSP) purchases during lockdown and Rs 18,700 crore was transferred to farmers” bank accounts.

Finance Minister Nirmala Sitharaman on Friday said the government will come up with a facilitative legal framework to enable farmers directly engage with processors, retailers and exporters in a fair and transparent manner.

Speaking to the media here, Sitharaman said that risk mitigation for farmers, assured returns and quality standardisation will be an integral part of the framework.

She noted that farmers lack an enforceable standard mechanism for predictable prices of crops at the time of sowing and private sector investment in provision of inputs and knowhow in the agriculture sector is hindered.

Among other administrative measures announced for reform of agriculture in India, she said, was that the Centre would amend the Essential Commodities Act whereby agriculture produce including pulses, onion, potato and cereals would be deregulated.

Edible oil and oilseeds will also be deregulated and driven by market scenario.

In a big bang measure, the Central government has decided to throw open the doors of national markets for farmers, allowing them to sell their produce ”wherever” and to ”whoever” without any restrictions on selling only to licensees in Agricultural Produce Market Committees (APMCs) or mandis.

The announcements are part of the Rs 20 lakh-crore economic package announced by the Prime Minister.

In a bid to support farmers, Finance Minister Nirmala Sitharaman on Friday said that the ”Operation Greens” scheme whereby a subsidy is provided on transportation and storage, will be extended to all fruits and vegetable produce in the country.

So far, it was effective on transportation and storage of tomato, onion and potato only.Terming the decision as “TOP to TOTAL”, Sitharaman said that the government will shell out Rs 500 crore for the scheme.

Under the scheme, 50 per cent subsidy is provided on transportation from surplus to deficient markets. Further, the government also provides 50 per cent subsidy on storage of the produce including cold storage.

The scheme will run in a pilot phase for six months but will be expanded and extended thereafter.

Sitharaman noted that supply chains have been disrupted and farmers are not being able to sell their produce in the markets. It would help in preventing distress sale and reduction of price of perishable fruits and vegetables at the farm level.

The decision is likely to help farmers get better price realisation, reduce wastages and affordability of products for consumers.

The announcement is part of the third tranche of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.

Previous articlePractice Social Distancing with These Online Entertainment Options
Next articleA Bank for 2020 and beyond
Arushi Sana is the Co Founder of NYK Daily. She was a Forensic Data Analyst previously employed with EY (Ernst & Young). She aims to develop a global community of knowledge and journalism par excellence through this News Platform. Arushi holds a degree in Computer Science Engineering. She is also a Mentor for women suffering from Mental Health, and helps them in becoming published authors. Helping and educating people always came naturally to Arushi. She is a writer, political researcher, a social worker and a singer with a flair for languages. Travel and nature are the biggest spiritual getaways for her. She believes Yoga and communication can make the world a better place, and is optimistic of a bright yet mysterious future!

Was it worth reading? Let us know.