Highlights of todays financial stimulas announced by Hon’ble FM
Rs 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers
• Lack of adequate cold chain & post-harvest management infrastructure in the vicinity of farm-gate causing gaps in value chains
• Focus has been on short term crop loans while investment in long term agriculture infrastructure has often not been enough
• Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs, Aggregation infrastructure providers, Startups, etc.)
• Impetus for development of farm-gate & aggregation point, affordable and financially viable Post Harvest Management infrastructure
• Fund will be created immediately
Rs 10,000 crore scheme for formalisation of Micro Food Enterprises
• Scheme promotes vision of Hon. PM: ‘Vocal for Local with Global outreach’
• Unorganised MFEs units need technical upgradation to attain FSSAI food standards, build brands and marketing
• A Scheme will be launched to help 2 lakh MFEs attain above goals
• Existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be supported
• Cluster-based approach (e.g. Mango in UP, Kesar in J&K, Bamboo shoots in North-East, Chilli in Andhra Pradesh, Tapioca in Tamil Nadu etc.)
• Expected outcomes: Improved health and safety standards, integration with retail markets, improved incomes
• Will also help in reaching untapped export markets in view of improved health consciousness
Rs 20,000 cr for fishermen through Pradhan Mantri Matsya Sampada Yojana
• There are critical gaps in fisheries value chain
• Government will launch the PMMSY for integrated, sustainable, inclusive development of marine and inland fisheries
• Rs 11,000 crore for activities in Marine, Inland fisheries and Aquaculture
• Rs 9,000 crore for Infrastructure – Fishing Harbours, Cold chain, Markets etc.
• Cage Culture, Seaweed farming, Ornamental Fisheries as well as New Fishing Vessels, Traceability, Laboratory Network etc. will be key activities
• Provisions of Ban Period support to fishermen (during the period fishing is not permitted), Personal and Boat Insurance
• Will lead to additional fish production of 70 lakh tonnes over 5 years
• Employment to over 55 lakh persons; double exports to Rs 1,00,000 crore
• Focus on Islands, Himalayan States, North-east and Aspirational Districts
National Animal Disease Control Programme
- National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis launched with total outlay of Rs. 13,343 crore.
- It ensures 100% vaccination of cattle, buffalo, sheep, goat and pig population (total 53 crore animals) for Foot and Mouth Disease (FMD) and for brucellosis
- Till date, 1.5 crore cows & buffaloes tagged and vaccinated
Animal Husbandry Infrastructure Development Fund
• Many areas in country with high milk production having great potential for private investment in dairy
• Aim to support private investment in dairy processing, value addition and cattle feed infrastructure
• An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crore will be set up
• Incentives to be given for establishing plants for export of niche products
Promotion of Herbal Cultivation
• National Medicinal Plants Board (NMPB) has supported 2.25 lakh hectare area under cultivation of medicinal plants
• 10,00,000 hectare will be covered under Herbal cultivation in next two years with outlay of Rs. 4,000 crore
• Will lead to Rs. 5,000 crore income generation for farmers
• Network of regional Mandis for medicinal plants
• NMPB will bring 800 hectare area by developing a corridor of medicinal plants along the banks of Ganga
Beekeeping initiatives – Rs 500 crore
• Beekeeping agro-based activity for rural area for additional source of income
• Increases yield and quality of crops through pollination
• Provides honey and other beehive products
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
• Implementation of standards of honey
• Developing traceability system for Honey;
• Capacity building with thrust on women;
• Development of quality nucleus stock and bee breeders
This will lead to increase in income for 2 lakh beekeepers and quality honey to consumers
From ‘TOP’ to TOTAL – Rs 500 crore
• Supply chains have been disrupted and farmers are not being able to sell their produce in the markets
• Distress sale and reduction of price of perishable fruits and vegetables at the farm level needs to be prevented
• Operation Green will be extended from Tomatoes, Onion and Potatoes (TOP) to ALL fruits and vegetables (TOTAL)
• Scheme features will be as follows:
• 50% subsidy on transportation from surplus to deficient markets.
• 50% subsidy on storage, including cold storages.
• Pilot for 6 months – Will be expanded and extended
• Expected outcomes: Better price realisation to farmers, reduced wastages, affordability of products for consumers
Amendments to Essential Commodities Act to enable better price realisation for farmers
• EC Act, 1955 was enacted in days of scarcity.
• Need to enable better price realisation for farmers by attracting investments and making agriculture sector competitive
• Agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potato to be deregulated
• Stock limit to be imposed under very exceptional circumstances like national calamities, famine with surge in prices
• No such stock limit shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand
• Govt will amend Essential Commodities Act
Agriculture Marketing Reforms to provide marketing choices to farmers
• Currently, farmers are bound to sell Mandi regulated agriculture produce only to licencees
• Such restriction of sale to only licenced buyers is not there for any industrial produce
• Results in hindrances in free flow of agricultural produce and fragmentation of markets and supply chain
• Lower price realisation for farmers.
A Central law will be formulated to provide:
• Adequate choices to the farmer to sell their produce at remunerative price
• Barrier-free inter-state trade
• A framework for e-trading of agriculture produce
Agriculture Produce Price and Quality Assurance
• Farmers lack an enforceable standard mechanism for predictable prices of crops at the time of sowing.
• Private sector investment in provision of inputs and knowhow in the agriculture sector hindered
• 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 integral part of the framework
The official presentation of Hon’ble FM for today is given below for ready reference of readers:-
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TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
