Atmanirbhar Bharat Economic Package Set 3: Agriculture [PDF download]

The Prime Minister, Narendra Modi, in his national address had shared his vision of improving the livelihood of people, after covid19 lockdown.He revealed the strategy of ‘Aatmanirbhar Bharat’ (Self Reliant India)  that will focus on making India self-reliant.

The first set of relief measures under the government’s ‘Atmanirbhar Bharat Abhiyan’—India’s Rs.20 lakh crore Covid-19 economic package was announced by Finance Minister Nirmala Sitharaman on May 15, 2020.

Focus areas: Agriculture – 8 measures relate to strengthening the infrastructure and storage facilities, 3 will relate to governance & administrative reforms.

Agri Infrastructure Fund for farm-gate infrastructure to be setup

A Rs. 1 lakh crore fund has been announced for agri-infrastructure fund for farm-gate infrastructure.

• The financing facility will be provided for funding Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs, Start-ups, etc.)
• The fund is expected to improve the number of adequate cold chain & Post Harvest Management infrastructure in the vicinity of farm-gate causing gaps in value chains

 Formalisation of Micro Food Enterprises (MFE) scheme:

The government of India will launch a scheme to help 2 lakh Micro Food Enterprises (MFE) to install technical process and attain FSSAI food standards, build brands and marketing.

• This scheme promotes the vision of PM ‘Vocal for local with Global Outreach’
• It will be executed in cluster-based approach (example, Mango in Uttar Pradesh, kesar in Jammu and Kashmir, bamboo shoots in north east, chili in Andhra Pradesh and Tapioca in Tamil Nadu)

The expected outcomes of this scheme are improved health and safety standards, integration with retail markets and reach untapped export markets.

Pradhan Mantri Matsya Sampada Yojana for Fishermen

Government will launch the PMMSY for integrated, sustainable, inclusive development of marine and in land fisheries and to fill critical gaps in the fisheries value chain.

• Rs 11,000 crore will be allocated for activities in marine, inland fisheries and aquaculture
• Rs.9000 Cr for strengthening infrastructure – fishing harbours, cold chain, markets etc

This initiative will lead additional fish production of 70 lakh tonnes over 5 years and provide  employment to over 55 lakh persons, also doubling the exports to Rs 1,00,000 crore.

National Animal Disease Control Programme

National Animal Disease Control Programme for Foot and Mouth Disease (FMD) & Brucellosis launched with total outlay of Rs. 13,343 crore.

It will ensure that 100% vaccination of cattle, buffalo, sheep, goat and pig population (total 53 crore animals) for the above mentioned diseases.

Animal Husbandry Infrastructure Development Fund to be setup

Government announces an Animal Husbandry Infrastructure Development Fund worth Rs. 15,000 crore.

• The fund aims to support private investment in Dairy Processing, value addition and cattle feed infrastructure
• Incentives to be given for establishing plants for export of niche products

Promotion of Herbal Cultivation

The National Medicinal Plants Board (NMPB) will support cultivation of herbal medicinal plants leading to income generation for farmers.

• NMPB  will support cultivation of medicinal plants in 10,00,000 hectare in the next two years with outlay of Rs. 4,000 crore.
• A network of regional Mandis for Medicinal Plants will be established.

The board will bring 800 hectare area by developing a corridor of medicinal plants along the banks of Ganga.

Support for Beekeeping initiatives

Government will implement a scheme for infrastructure development related to integrated beekeeping development centres, collection, marketing and storage centres, post harvest & value addition facilities etc;

These initiatives will lead to increase in income for 2 lakh beekeepers and quality honey to consumers.

Operation Greens – TOP to TOTAL

“Operation Greens” run by Ministry of Food Processing Industries (MOFPI) will be extended from Tomatoes, Onion and Potatoes (TOP) to all fruit and vegetables (TOTAL)

• The Scheme would provide 50% subsidy on transportation from surplus to deficient markets, 50% subsidy on storage, including cold storages
• To be launched as pilot project  for the next 6 months and will be extended and expanded.

The expected outcomes of these measures will lead to better price realisation to farmers, reduced wastages & affordability of products for consumers.

Governance and Administrative Reforms for Agriculture Sector: During the press conference, the Union Finance Minister also released certain administrative reforms that would strengthen the agri sector.

Amendments to Essential Commodities

The Essential Commodities Act, 1955 will be amended to enable better price realisation for farmers and make agriculture sector competitive.

• Agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potato shall be deregulated.
• Stock limit to be imposed under very exceptional circumstances like national calamities, famine with surge in prices.

Agriculture Marketing Reforms

A Central law will be formulated to provide adequate choices to the farmer to sell their produce at remunerative price, promote barrier free Inter-State Trade and a framework for e-trading of agriculture produce.

 Agriculture Produce Pricing and Quality Assurance

A facilitative legal framework will be created by the government to enable farmers to engage with processors, aggregators, large retailers, exporters etc. in a fair and transparent manner.

The integral part of the framework is Risk mitigation for farmers, assured returns and quality standardization.

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Atmanirbhar Bharat Economic Package Set 1 Highlights: Businesses and MSME [PDF download]

Atmanirbhar Bharat Economic Package Set 2 Highlights [PDF download]