FM Nirmala Sitharaman Highlights: After announcing relief for some of the India’s poorer section of the society including migrant workers, street vendors and small farmers, Finance Minister Nirmala Sitharaman has announced measures for the agriculture and allied activities such as dairy, animal husbandry and fisheries as the government looks to strengthen agriculture sector. “Indian farmers have always ensured that despite their smallholding, they will give high yields,” she said. During lockdown, the government also took some steps to help India’s dairy co-operatives and procured large amounts from milk farmers. Among major announcements of today, the government has said that it will improve India’s farm infrastructure, and will take India’s turmeric, chillies, makhana and kesar (saffron) across the seven seas. “The government will provide Rs 10,000 crore for food enterprises which are micro in size. This will be a cluster based approach, with which, local value added products can reach global markets,” Finance Minister said. Further, the government has introduced TOP to TOTAL scheme to repair broken supply chains. “This scheme will have 50% subsidy on transportation from surplus to deficient markets; 50% subsidy on storage, including cold storages,” FM said. Agriculture provides employment to nearly 60% of India’s population and earlier in his nationwide address, PM Modi had said that Rs 20 lakh crore package will also focus on India’s farmers who work during every circumstance. The FM’s relief measures follow Prime Minister Narendra Modi’s earlier announcement that the government is working on a Rs 20 lakh crore package to help various sections of the society tide over the coronavirus crisis.
Nirmala Sitharaman Highlights: Govt strengthens India’s agri, allied sectors supply chain; major export push too
Nirmala Sitharaman Hihjlights: FM has announced some major reforms to strengthen India's agriculture and allied activities sector. The government has also announced major export push to take kesar, chillies, saffron and other famous Indian food product to the globe.
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India’s exports contracted by a record 60.28 per cent to USD 10.36 billion in April amid the coronavirus lockdown, official data showed on Friday. Imports too tumbled by 58.65 per cent to USD 17.12 billion in April from USD 41.4 billion in the same month last year, according to the data by the commerce and industry ministry. Read full story here
We are in the midst of a unique fiscal environment and the needs of business and citizens are still evolving. The Government has, rightly, taken steps to support liquidity and the economy. All measures initiated, in tranches, should be welcomed as they will benefit multiple industries. As each incentive is implemented, new options and issues will emerge for additional fiscal action - Deepak Bhawnani, CEO of Alea Consulting
To provide assurance to farmer on Agriculture Produce Price and Quality, facilitative legal framework will be created to enable farmers for engaging with processors, aggregators, large retailers, exporters etc. in fair and transparent manner - FM Sitharaman
The third day of reforms are focused on agriculture and essential commodities act to be amended, it could benefit some agri related stocks but the bigger trigger and benefits for consumers and companies is missing. We do not expect any major positive upmove. Global markets movement will be key to watch - Vikas Jain, Senior Research Analyst at Reliance Securities
PM Garib Kalyan package announced immediately after lockdown however, nothing can be adequate at this time - FM
From last October, the government has continuously been reviewing the debt of MSMEs - FM Sitharaman
Government clarifies tax refund was not included in package. FM Sitharaman said that the government is not sitting on the taxpayers money and will roll out immediately.
One lakh crore investment for strengthening Farm gate infrastructure is most welcome. The only aspect missing was investment in irrigation. Now about 50% agriculture is still dependent on rainfall. Irrigation investment would improve productivity and food security." Hari Hara Mishra, Policy analyst and columnist.
Rs 4,000 crore has been allocated for promotion of herbal cultivation. The move is aimed at generating income of Rs 5,000 crore for local farmers engaged in this cultivation. National Medicinal Plant Board will undertake 800 hectares of areas in the corridors of river Ganga for growing of herbal and medical plants.
Fund of Rs 10,000 crore has been allocated for micro food enterprises. This will take a cluster approach and the marketing of local products globally will be assisted with the help of this fund. This is intended to benefit 2 lakh micro food enterprises, by bringing up to level, modernising them, branding them, etc.
FM Nirmala Sitharaman listed out 11 major measures to lift agriculture and allied services.
Right now, farmers are bound to sell agricultural products only to licensees in APMCs. Such restriction of sale is not there for any industrial produce. This restriction results in hindrance in the free flow of agricultural produce. It also results in less price realisation for farmers. - FM Sitharaman
Rs 500 cr provision to repair broken supply chains. This scheme will have 50% subsidy on transportation from surplus to deficient markets; 50% subsidy on storage, including cold storages.
Central law for farmers to have a choice to sell the produce at an attractive price; no barriers in inter-state trade, which at the moment is restricted. Also, a framework for e-trading of agricultural produce
Government to bring central law for farmers to make them able to sell their produce across the states in the country. Farmers can sell their produce at attractive prices by e-trading to even those who do not have licenses.
Amendment in Essential Commodity Act will help farmers in earning adequate price of their produce and will also help in boosting exports - FM
Government does amendment in Essential Commodity Act by deregulating it. No stock limit will be applied for food processors.
Under top to total yojana, operation greens for growing tomatoes, onion and potatoes has been extended to other items too. Perishable items will get protection under this move. 50% subsidy on transportation and storage will be given.
Government allocates Rs 500 crore for bee keeping, benefiting 2 lakh bee keepers in the rural areas. The move is likely to lift rural economy - FM Sitharaman
Promotion of herbal cultivation gets Rs 4,000 crore. 2.25 lakh hectare area under promotion of herbal plants to be increased to 10 lakh hectare in the next two years, giving Rs 5,000 crore more earnings to the related farmers. - FM Sitharaman
Kashmir’s kesar, Bihar’s makhana, Karnataka’s ragi, Andhra’s chillies to be taken across the seven seas - FM
Rs 15,000 crore to be spent for dairy infrastructure by the government. Private investment also allowed in dairy infrastructure development fund.
Govt ensures 100 percent vaccination for foot and mouth disease of animals to help milk related producers and animals. Govt to spend Rs 13343 crore for this.
Rs 20,000 crore package announced for 70 lakh tonnes of additional fish production in the next five years under Matsya Sampada Yojana
Pradhan mantri Matsya Sampada Yojana to employ 55 lakh people, double India's exports to Rs 1 lakh crore - FM
The Rs 10,000 crore fund will help MFEs market to the world India’s organic, herbal, nutritional, health based items, in which India has great strength - FM
FM gives Kashmir’s kesar, Bihar’s makhana, Karnataka’s ragi, and Andhra’s chillies as examples of clusters. Under Van Sampada, states can also take benefits from clusters under Vocal for Local mission - FM
2 lakh MFEs will benefit from the Rs 10,000 crore package by modernising and better branding - FM
The government will provide Rs 10,000 crore for food enterprises which are micro in size. This will be a cluster based approach, with which, local value added products can reach global markets, says Finance Minister
1 lakh crore for aggregators, FPOs, agro coop societies, for strengthening farm gate infrastructure, such as cold chain, storage centres, yards, harvest facilities
6400 cr claims being given in Fasal Bima Yojana - FM Sitharaman
Large amount of milk procured from milk farmers during the lockdown - FM Sitharaman
Purchases of Rs 74,300 under minimum support price has been made in the last two months and Rs 18700 crore has been transferred into the accounts of farmers under PM-KISAN.
Eight measures related to strengthening infrastructure, increasing capacities, money allocation, etc and three will be on governance and administrative reforms.
11 measures to be announced related to agri and allied services in today's announcement - FM SItharman
India is third largest cereal producers. Indian farmers have always ensured that despite their smallholding, they will give high yields - FM
The third tranche of announcement focusses on agriculture and allied activities - FM Sitharaman
Nirmala Sitharaman begins address. Major announcements on agriculture and industries likely on cards.
FM Sitharaman will soon begin the announcements for third tranche of economic stimulus from Modi's Rs 20 lakh crore stimulus package
Government’s efforts to trigger pace and activity in the sector through a Rs 70000 crore stimulus package is commendable. Extension of the Credit Linked Subsidy Scheme will encourage more demand and aid in clearing unsold inventory. The announcement to build rental housing complexes via public-private partnership will stimulate demand for raw materials, generate employment and thus provide a thrust to affordable housing - Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani.