Reforms in the Basic Products Law, announces Nirmala Sitharaman: highlights

New Delhi:

Union Finance Minister Nirmala Sitharaman will present the third tranche of the Rs 20 lakh crore fiscal stimulus from the Center which seeks to soften the coronavirus hit and block the economy. Today’s announcements will focus on agriculture and allied activities. She has already presented two tranches of measures: Day 1 focused on small businesses and the middle class, and Day 2 was for migrants and farmers.

These are the highlights of Nirmala Sitharaman’s announcements on Day 3:

• Today’s focus is agriculture and allied activities.
• Higher proportion of Indian population dependent on agriculture. The maximums are small and medium farmers.
• The Indian farmer has always faced challenges and has set a certain global benchmark. We are the largest producer of milk, jute, legumes, third largest producer of cereals.
• Part of the scheme, relief for animal husbandry and dairy products.
• Today I will announce 11 measures, eight related to strengthening activities and three related to governance.
• Rs 74.3 billion in MSP-based purchases were made during the close. Under Prime Minister KISAN Yojana, Rs 18.6 billion was transferred directly to farmers’ accounts. Fasal Beema Yojana claims worth Rs 6,600 crore were also settled. Furthermore, for animal husbandry, 560 lakh liters of milk per day were purchased compared to the 360 ​​lakh liters usually obtained. This was done by the dairy cooperatives.
• Almost 2 crore farmers benefited in the last 2 months.
• The eight measures are as follows:

1. A fund of Rs 1 lakh crore will be provided to strengthen the farm infrastructure: cold storage facilities, food storage centers, etc. This will benefit primary agricultural societies, aggregators, startups, etc. New agricultural businesses will also benefit. This will also help in the export. This fund will address this problem. It will be created as soon as possible.
2. For food companies that are micro in size: Rs 10 billion scheme to be implemented in a cluster based approach. Health and wellness, nutritional, herbal, organic products. 2 lakh Micro Food Enterprise will benefit. Target group brand marketing. This will help achieve the PM call for “Vocal for Local”. This fund will aim to promote these products worldwide, with special attention to women business owners and workers.
3. Pradhan Mantri matsya-sampada yojana: 20 billion new fishing boats can be provided, fishing ports can be built. Fishermen don’t go to sea for long. Boats may be insured. This will result in an additional 70 tonnes of tonnes of fish. Of the Rs 20 billion, Rs 9 billion will go to ships, mandi, ports and marketing. This will provide employment for 55 lakh people.
4. Foot and mouth disease is common among animals. Animals that have not been vaccinated suffer from this. So the farmers suffer in turn. To guarantee 100% vaccination of beef cattle – Rs 53 million, Rs 13,343 million will be provided. Since January, 1.5 crore buffaloes and cows have been labeled for vaccination. Subsequent blocking, this will take place.
5. Rs 15,000 crore for the dairy sector – Livestock Infrastructure Development Fund. It will aim to support private investment in the dairy sector.
6. Rs 4 billion rupees for herb cultivation. 10 lakh hectares will be covered under herb cultivation. A corridor will be established on both banks of the Ganges River.
7. Rs 500 crore for beekeeping initiatives. It will improve beekeeping, which is crucial for cross-pollination, and also increase honey production. This will also be targeted at the ‘local to global’ initiative.
8. Rs 500 million rupees for a program called ‘TOP to TOTAL’: this will help improve supply chains, which have been interrupted during the blockade. This used to be for tomato, onion, and potato, but will now include all other vegetables and will be started first on a pilot basis. There will be 50% on product transportation and a 50% subsidy on storage, including cold storage.

• The three administrative measures are as follows:

1. Amendment to the Commodities Law to allow better price realization for farmers. The amendment will go largely towards the deregulation of certain crops, such as potatoes, cereals, onions, etc. A stock limit will not apply for food processing units, value added corporations, exporters, etc. This will not hinder food processing and exports when Essential Commodity Law is applicable.
2. Farmers have the option of selling their products at an attractive price. Agricultural marketing reforms to provide marketing options to farmers. Farmers are currently required to sell only a few licenses. This does not happen in any other manufacturing sector. We want to make the market more accessible to farmers. Now we will allow farmers to sell to anyone who offers a better price for their products. This will help them win better.
3. Price support program for agricultural products: farmers do not have a standard mechanism that tells them what price they will get for their harvest. Even when they sow the crop, they do so with the uncertainty of what they will monetize when a buyer comes. Now we will work within a legal framework and a mechanism that ensures that they know exactly what they will earn for the amount they produce.