Atma Nirbhar Bharat: Key takeaways from Finance Minister Nirmala Sitharaman's Presser

Finance Minister Nirmala Sitharaman, on Friday, held a presser, in which she announced a slew of measures to revive the economy. This was the third tranche of announcements that focused on agriculture, fisheries, animal husbandry and allied industries.

"Indian farmers would give us on the highest yield despite monsoons and droughts and most of these farmers are small and marginal farmers," said the finance minister at the beginning of her speech. “Indian farmers, against all adversaries, have always stood up to the challenge and endured a lot,” she added.

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"It goes to the credit of our rural population that our farmers have mostly concluded rabi crop harvest despite the lockdown," said Sitharaman prefacing her 11 measure financial package for agriculture and allied industries

"11 measures were announced today by the finance minister. Eight of which pertain to the strengthening of infrastructure and capacity building. Three measures will be made to affect governance and administrative reforms related to agriculture and allied industries," said the Finance minister.

Also Read: Centre to help 2 lakh Micro Food Enterprises by launching new scheme

The finance minister addressed various schemes undertaken by the government of the past few months related to the dairy and fisheries sectors.

Additional measures were taken in the last 2 months, such as MSP purchases of amount more than Rs 74,300 crore. PM Kisan transfer of Rs 18,700 crores. PM Fasal Bima Yojana of Rs 6,400 crores.

The finance minister said that during the lockdown, milk demand went down by 20-25% and that 560 lakh litres of milk was being produced against a daily sale of 360 lakh litres. Further 11 crore litres of extra milk was procured ensuring payment of Rs 4100 crores to fairy farmers. "New scheme has been launched for interest subvention at 2% per annum to dairy cooperatives for 2020-21 aimed at unlocking Rs 5000 crores additional liquidity, benefitting two crore farmers

The validity of Sanitary Import Permits for import of Shrimp broodstock will be extended by 3 months. Delay up to 1 month in the arrival of Broodstock consignment will be condoned.

Registration of 242 shrimp hatcheries and Nauplii rearing hatcheries expiring on 31st march 2020 extended for 3 months. To help the Fisheries sector, operations of Marine Capture Fisheries and Aquaculture has been relaxed to cover Inland Fisheries.

Here are the 11 measures that finance minister Nirmala Sitharaman put forward today.

Also Read: 3rd part of economic package to aid agri sector: Finance Minister Nirmala Sitharaman

1. One lakh crore to be provided for agriculture infrastructure projects

One lakh crore will be provided for funding agriculture infrastructure projects at farm-gate and aggregation points. agriculture entrepreneurs, primary agriculture cooperative societies, startups, farmer producer organisations. Impetus for development of farm-gate and aggregation point, affordable ad financially viable post-harvest management infrastructure.

2. 10,000 crores for formalisation of Micro Food Entreprises

"Aiming to implement PM's vision of ‘Vocal for Local with Global outreach’, a scheme will be launched to help 2 lakh Micro Food Enterprises, Improved health and safety standards, integration with retail markets and improved incomes to be key focus areas," said the finance minister.

Unorganised MFE units need technical upgradation to attain FSSAI food standards, build brands and marketing. Cluster-based approach to be taken to make use of the strengths of various regions. This will benefit 2 lakh MFEs attain the specified goals. The expected outcome of this scheme is to improve health and safety standards, integration with retail markets.

"Focus will be on women, on SC/STs and on aspirational districts... This will benefit 2 lakh Micro Food Entrepreneurs," said the finance minister.

3. 20,000 crores for Fishermen through Pradhan Mantri Matsya Sampada Yojana

Govt will launch the PMMSY for integrated, sustainable, inclusive development of maritime and inland fisheries. Rs 11,000 crore for activities in marine, inland fisheries and aquaculture. 9000 cr for infrastructure. The expected outcome is to create employment to over 55 lakh persons, double exports to 1 lakh crore and create additional fish production of 70 lakh tonnes over 5 years.

4. National Animal Disease Control Programme

National Animal Disease Control Programme for Foot and mouth disease and brucellosis launched with a total expenditure of 13,343 cr. It ensures 100% vaccination of cattle, buffalo and other livestock covering a total of 53 cr animals for Foot and mouth disease and for brucellosis. Till date, 1.5 crore cows and buffalos tagged and vaccinated.

5. 15,000 crores Animal Husbandry Infrastructure Development Fund

15,000 crore will be provided for the animal husbandry infrastructure development fund. Aim to support private investment in dairy processing, value addition and cattle feed infrastructure. Incentives to be given for establishing plants for the export of niche products.

6. 4,000 crores for promotion of herbal cultivation

National medicinal plants board (NMPB) has supported 2.25 lakh hectare area under cultivation. 10 lakh hectare will be covered under herbal cultivation in next 2 years with an outlay of 4,000 cr. Will lead to Rs 5,000 cr income generation for farmers. NMPB will bring 800-hectare area by developing a corridor of medicinal plants along the banks of the Ganga.

7. 500 crores for beekeeping initiatives

This fund is aimed at increasing yield and quality of crops through pollination. The government will implement a scheme for infrastructure development related to integrated beekeeping development centres, collection, marketing and storage centres, post-harvest and value addition facilities.

8. 500 crores- Top to Total

Operation Greens will be extended from tomatoes, onions and potatoes to all fruits and vegetables. 50% subsidy will be provided on transportation from surplus and deficient markets. 50% subsidy will be given on storage, including cold storage. Distress sale of perishables needs to be prevented including the reduction of price. This will be run as a pilot for 6 months and will be expanded and extended. Expected outcome is better price realisation to farmers, reduced wastages and affordability of products for consumers.

Governance and administrative reforms

9. Amending the Essential Commodities Act, 1955

Essential Commodities Act, 1955 was enacted in days of scarcity. The government will amend the Essential Commodities Act, 1955 to address the need to enable better price realisation for farmers by attracting investments and making agriculture sector competitive. Agriculture products including cereals, edible oils, pulses, onions, potatoes will be deregulated. Stock limits will be imposed under very exceptional circumstances like national calamities, famine with a surge in prices. No stock limits shall apply to processors or value chain participants, subject to their installed capacity or to any exporter subject to the export demand.

10. Agriculture marketing reforms to provide marketing options for farmers

Farmers were bound to sell agriculture produce only to licensees in APMCs which resulted in hindrances in the free flow of agriculture produce, fragmentation of markets and supply chain. A central law will remove barriers from inter-state trade. Adequate choices will be given to farmers to sell produce at an attractive price. Framework for e-trading of agriculture produce. "Industries not restricted to sell to licensees, why only farmers?" questioned Nirmala Sitharaman.

11. Agriculture produce price and quality assurance

A facilitative legal framework will be created to enable farmers to engage with processors, aggregators, large retailers, and exporters in a fair and transparent manner. Risk mitigation for farmers, assured returns and quality standardisation will be an integral part of the framework, said the finance minister. This is being done to tackle the issue of farmers lacking an enforceable standard mechanism for predictable prices of crops at the time of sowing.