In continuation of Economic package announcement due to the spread of the COVID-19, Finance Minister (FM) Nirmala Sitharaman announced third part of package which provides special relief and credit support to agriculture, hospitality and tourism. Key highlights are as follows-
1. Important 11 measures initiatives includes:
11 booster shots for India’s farmers
- 8 relating to strengthening infrastructure, capacity, logistics
- 3 relate to governance and administrative reforms
2. Government Initiatives During Lockdown Period to support Farmers:
- Minimum Support Price purchases worth 74,300 crores has taken place during lockdown
- Rs 18,700 crore transferred to farmers under PM KISAN
- Rs 6,400 crores released under PM Fasal Bima Yojana
- New scheme for interest subvention of 2%/ annum for dairy cooperatives
- Additional 2% interest subvention on prompt payment/ interest servicing
FM announcement of economic package for Small traders, worker, farmers
3. Rs 1 lakh crore Liquidity Support provided – Agri Infrastructure fund
- For aggregators, FPOs, primary agriculture societies for strengthening farm gate infrastructure
- For cold chains and post harvest infrastructure
- Specially for private and startups
- ₹ 1 lakh crore fund being created for Farmer Producer Organizations, aggregators, primary agriculture cooperative societies for strengthening farm-gate infrastructure such as cold chains, post harvest management infrastructure.
4. Support to micro food enterprises –
- Fund of Rs 10,000 crores to be made
- Cluster-based approach to scheme depending on location
- 2 lakh enterprises will benefit
- For locally-made products to reach global markets
- Focus on women, SCs/STs and aspirational areas
FM Sitharaman major Announcements for special relief and credit support to economy
5. Animal Husbandry Additional Steps:
Animal Husbandry Infrastructure Fund – Rs 15,000 crores fund to be established
- New scheme has been launched for interest subvention @ 2% per annum to dairy cooperatives for 2020-21 aimed at unlocking Rs 5000 crores additional liquidity, benefitting 2 crore farmers
- Milk was being thrown on streets, since consumers were unable to buy it during lockdown, during this time, 560 lakh litres/day was procured by cooperatives, extra 111 crore litres bought, farmers got paid ₹ 4,100 crore
6. Agriculture Additional Steps:
Funds transfer worth Rs 18,700 crores has been done under PM KISAN in past 2 months and PM Fasal Bima Yojana claims worth Rs 6,400 crores released in past 2 months
7. Fisheries Sector Support announced by FM
- To help Fisheries sector, operations of Marine Capture Fisheries and Aquaculture has been relaxed to cover Inland Fisheries
- Registration of 242 shrimp hatcheries and rearing hatcheries has been extended for 3 months, operation of marine capture fisheries and aquaculture has been relaxed to cover inland fisheries
- All COVID19 related deadline extensions relating to fisheries activities, many of them involving overseas contracts, have been honoured. Very many measures which will help marine and coastal farmers have been undertaken as promised
EPFO – 17 FAQ’S on transfer of EPF Accounts
8. 100% vaccination of all cattle (nearly 53 crore animals) to eradicate foot and mouth disease
9. Support to Under Matsya Sampada Yojana
- Rs 20,000 crore fund to be created to address critical gaps in fisheries value chain
- For integrated, sustainable, inclusive development of marine and inland fisheries
- Plug critical gaps in fisheries value chain;
- Provide employment to over 55 lakh persons
- Double exports to Rs 1 lakh crore
10. Support and Promotion of herbal cultivation
- Rs 4,000 crore to be allocated
- Up to 10 lakh hectare to be brought under herbal cultivation
- To generate Rs 5,000 crore income for farmers
- 800 hectares along Ganga for growing herbal and medicinal plants
Life Insurance Premium Relaxation to Policyholders – Upto 31.05.2020
11. Support For bee-keeping
- Rs 500 crores for bee keeping initiatives to benefit 2 lakh keepers
- Production of wax to be encouraged
12. National Animal Disease Control Programme has been launched with total outlay of Rs. 13,343 crores for 100% vaccination of cattle, buffalo, sheep, goat and pig population in India
13. Private entrepreneurs, startups who look to facilitate by procuring from farmers and seek to create value addition for the global market, but don’t have infrastructure, will benefit from the Rs 1 lakh crore fund
14. Promotion of Herbal Cultivation – Rs. 4000 Crore
- To promote Herbal Cultivation in India Government commits Rs 4000 crore.
- move aims to cover 10 lakh hectare under herbal cultivation in 2 years; corridor of medicinal plants to come up across banks of Ganga.
15. Government will promote: Operation Green as announced by FM
- Additional Rs 500 crores for supply chains disrupted by lockdown
- Includes all perishable items
- 50% subsidy on transport
- 50% subsidy on storage
- Pilot for 6 months
- Will be extended once pilot is cleared
16. Top to Total
In a major announcement, Government extends Operation Greens from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables
Major Reforms related governance and administrative
1. Essential Commodities Act (1955) amended
- To tackle abundance of crops
- Cereals, edible oils, oil seeds, potato and onion to be deregulated
- No stock limit shall apply for storage
- to enable better price realisation for farmers;
- Agriculture food stuffs including cereals,
2. Fair price for farmers
- Central law to provide farmers choice to sell at attractive prices
- Inter-state trade to be made barrier-free
- E-trade of produce should be facilitated
GSTR-3B Nil Return can be filed now with SMS : Notification Released
3. Standard mechanism for predictable pricing
- Legal framework to help farmers to fix their own price
- Assured price return quantity for farmers prior to sowing
To increase availability on farming technology and selling opportunities.
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The author of the above article is CS Lalit Rajput, Partner at Xcede Consultech LLP.
Email id: [email protected]
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