Highlights of “Aatma Nirbhar Economic Package”: Part-3

OVERVIEW OF FIRST TWO TRANCHES :

The first tranche included measures for small businesses, the second aimed at helping migrant workers.

KEY HIGHLIGHTS :

(1.) Today’s initiatives 11 measures today include:

11 booster shots for India’s farmer :

  • 8 relating to strengthening infrastructure, capacity and 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 the lockdown
  • Rs 18,700 transferred to farmers under PM KISAN
  • Rs 6,400 crores released under PM Fasal Bima Yojana
  • New scheme for interest subvention of 2% per annum for dairy cooperatives
  • Additional 2% interest subvention on prompt payment and interest servicing

(3.) Rs 1 lakh crore Liquidity Support provided – Agri Infrastructure fund :

  • For aggregators, FPOs and primary agriculture societies for strengthening farm gate infrastructure
  • For cold chains and post-harvest infrastructure
  • Especially for private and startups
  • ₹ 1 lakh crore fund being created for Farmer Producer Organizations, aggregators and primary agriculture cooperative societies for strengthening farm-gate infrastructures such as cold chains and post-harvest management infrastructure.

(4.) Support for 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 and SCs/STs and aspirational areas

(5.) Animal Husbandry Additional Steps :

Animal Husbandry Infrastructure Fund – Rs 15,000 crores fund to be established

  • The 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 and benefitting 2 crore farmers
  • Milk was being thrown on streets since consumers were unable to buy it during the lockdown and 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 :

  • To help the Fisheries sector and 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 and 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

(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 the fisheries value chain
  • For integrated, sustainable, inclusive development of marine and inland fisheries
  • Plug critical gaps in the 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

(11.) Support For bee-keeping :

  • Rs 500 crores for beekeeping 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 the infrastructure, will benefit from the ₹ 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; a corridor of medicinal plants to come up across banks of Ganga

(15.) The government will promote: Operation Green :

  • Additional Rs 500 crores for supply chains disrupted by the lockdown
  • Includes all perishable items
  • 50% subsidy on transport
  • 50% subsidy on storage
  • The pilot for 6 months
  • Will be extended once the 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 TO ADMINISTRATIVE AND GOVERNANCE :

(1.) Essential Commodities Act (1955) amended :

  • To tackle the abundance of crops
  • Cereals, edible oils, oilseeds, potato and onion to be deregulated
  • No stock limit shall apply for storage
  • To enable better price realisation for farmers
  • Agriculture foodstuffs including cereals.

(2.) Fair price for farmers :

  • Central law to provide farmers with the choice to sell at attractive prices
  • Inter-state trade to be made barrier-free
  • E-trade of produce should be facilitated

(3.) The standard mechanism for predictable pricing :

  • The legal framework to help farmers to fix their own price
  • Assured price return quantity for farmers prior to sowing
  • To increase the availability of farming technology and selling opportunities

 

You May Also Like to Read: Aatma Nirbhar Economic Package Part 2