Finance Minister Nirmala Sitharaman announces Rs 1.63 lakh cr for agriculture-allied sectors

The Centre on Friday announced a Rs 1 lakh-crore fund to boost agriculture infrastructure and allocated over Rs 60,000 crore to animal husbandry, fisheries and other allied activities aiming at reducing imports by upping domestic output. It also vowed to amend the 65-year-old Essential Commodities Act to de-regulate agricultural products and ensure better price realisation to farmers.

Announcing the third set of measures to soften the COVID-19 blow on farmers, Finance Minister Nirmala Sitharaman said the Centre will implement a law to bring about agriculture marketing reforms and help farmers sell their produce at attractive prices, remove barriers to inter-state trade and encourage e-trading. Farmers are currently bound to sell produce only to licensees in the Agricultural Produce Market Committee (APMC). Such restrictions don't exist for any industrial produce.

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After amending the EC Act of 1955, cereals, edible oils, oilseeds, pulses, onions and potatoes will be deregulated and stock limits will be imposed on these only in exceptional circumstances. The Economic Survey 2019-20 had argued against the Act calling it "anachronistic", and saying interventions under it only led to price volatility.

"The government will bring in a facilitative legal framework to enable farmers to engage with processors, aggregators, large retailers and exporters in a fair and transparent manner. This will ensure assured returns and risk mitigation for farmers. A central law will be formulated to provide adequate choices to farmers to sell produce at attractive price, barrier-free inter-state trade and a framework for e-trading of agriculture produce," Sitharaman said, unveiling a long-pending reform on the agriculture front.

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In recent years, the EC Act has been criticised for being draconian, giving too much powers in the executive to control price and volume of agri produce thereby, discouraging farmers.

Among other sectoral announcements was a Rs 20,000-crore fund to fishermen was aimed at additional fish production of around 70 lakh tonnes over the next five years and to create 55 lakh more jobs.

Besides, special emphasis on herbal farming, bee keeping, dairy development and national animal disease control programme were aimed at increasing domestic production under "vocal for local" slogan given by Prime Minister Narendra Modi that seeks to reduce imports in every sector.

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But the minister was criticised for not giving immediate relief to farmers and farm sector suffering the virus impact.