Third tranche of Economic Package announced – focus on Agriculture and allied activities

Finance Minister Nirmala Sitharaman today announced the third tranche of Aatmanirbhar Bharat economic package. The first tranche of economic package focussed on MSMEs and NBFCs. The second tranche of economic package focused on migrant labours, street vendors, poor, and small traders. The third tranche of economic package focuses on agriculture and allied activities.

Following measures were announced today:

1. Financing facility of ₹ 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers
Fund will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs, Start-ups, etc.)

2. Fund of ₹ 10,000 crores scheme for Formalisation of Micro Food Enterprises (MFE)
The scheme promotes PM Modi’s vision of Vocal for Local. This scheme will help 2 lakhs MFEs to upgrade themselves

3. ₹ 20,000 crores for Fishermen through Pradhan Mantri MatsyaSampadaYojana (PMMSY)
₹ 11,000 crores allocated for activities in marine, Inland fisheries, and aquaculture. ₹ 9,000 crores allocated for Infrastructure – Fishing harbours, cold-chain, markets etc. The government aims at providing employment to over 55 lakh persons and doubling exports to ₹ 1 lakh crore.

4. National Animal Disease Control Programme
The National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis launched with a total outlay of ₹13,343 crores, to ensure 100% vaccination of cattle, buffalo, sheep, goat and pig population (total 53 crore animals).

5. Animal Husbandry Infrastructure Fund
Fund of ₹15,000 crores fund to be established for dairy infrastructure and cattle feed infrastructure.

6. ₹ 4,000 crores allocated for promotion of herbal cultivation
National Medicinal Plants Board (NMPB) has supported 2.25 lakh hectare area under cultivation of medicinal plants. 10,00,000 hectares will be covered under Herbal cultivation in the next two years. The scheme will lead to ₹5,000 crores income generation for farmers.

7. ₹500 crores for beekeeping initiatives
The scheme will lead to increase in income for 2lakh beekeepers and quality honey to consumers.

8. ₹500 crores for ‘TOP’ to TOTAL
Operation Greens will be extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL). The scheme will provide a 50% subsidy on transportation from surplus to deficient markets, and a 50% subsidy on storage, including cold storages.

9. Amendments in the Essential Commodities Act (1955)
The government will amend the Essential Commodities Act to enable better price realisation for farmers; Agriculture foodstuffs including cereals, edible oils, oilseeds, pulses, onions and potato will be deregulated. No stock limit shall apply for storage.

10. Marketing Reforms to provide marketing choices to farmers
A new law will be formulated to provide –

• • adequate choices to the farmer to sell produce at an attractive price;
  • barrier-free Inter-State Trade;
  • Framework fore-trading of agriculture produce.

11. Agriculture Produce Price and Quality Assurance
A facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters etc. in a fair and transparent manner. Risk mitigation for farmers assured returns and quality standardisation shall form an integral part of the framework.