The Minister of Finance recently announced measures aimed at strengthening the infrastructure, logistics, capacity building, governance, and administrative reforms for agriculture, fisheries, and food processing sectors. These measures are part of the third tranche of the Atmanirbhar Bharat Abhiyan. Additionally, these measures form a part of the ₹20 lakh crore economic stimulus package initiated due to the Covid-19 pandemic.
Agri Infrastructure Fund
The initiative includes financing facilities of ₹1,00,000 crore for funding agriculture infrastructure projects at farm gates, aggregation points such as Primary Agricultural Cooperative Societies, Farmers Producer Organizations (FPOs), Agriculture entrepreneurs, Start-ups, etc. The funds have been immediately made available.
Formalisation of Micro Food Enterprises
A ₹10,000 crore scheme promoting ‘Vocal for Local with Global outreach’ provides technical upgradation for 2 lakh Micro Food Enterprises (MFEs) to meet Food Safety and Standards Authority of India (FSSAI) standards, build brands, and improve marketing. Women and SC/ST-owned units will be specifically targeted along with those in Aspirational Districts. A cluster-based approach will be followed like Mango cultivation in Uttar Pradesh, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.
Pradhan Mantri Matsya Sampada Yojana
This scheme aims for integrated, sustainable, inclusive development of marine and inland fisheries, with a focus on Islands, Himalayan States, North-East, and Aspirational Districts. This includes ₹11,000 crores for activities in Marine, Inland fisheries, and Aquaculture and ₹9000 crores for infrastructure.
National Animal Disease Control Programme
The National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis has been launched with an outlay of ₹13,343 crore to ensure 100% vaccination of cattle, buffalo, sheep, goat, and pig.
Animal Husbandry Infrastructure Development Fund
A fund of ₹15,000 crore will be set up to support private investment in Dairy Processing, value addition, and cattle feed infrastructure. The rural population widely practices animal husbandry as an associate business with agricultural activities in rural India.
Promotion of Herbal Cultivation
To promote herbal cultivation, 10,00,000 hectares will be covered in the next two years with an outlay of ₹4,000 crore. This will provide income generation for farmers and promote the cultivation of medicinal plants along the banks of the Ganga.
Beekeeping Initiatives
The government plans to implement a scheme for infrastructure development related to Integrated Beekeeping Development Centres, capacity building, collection, marketing, and storage centres with an outlay of ₹500 crore.
Extension of Operation Greens
Operation Greens run by the Ministry of Food Processing Industries will be extended from Tomatoes, Onion, and Potatoes to all fruit and vegetables, with an outlay of ₹500 crore. This project aims to reduce wastage and increase affordability of products for consumers.
Amendments to Essential Commodities Act, 1955
Agriculture foodstuffs, including cereals, edible oils, oilseeds, pulses, onions, and potatoes, will be deregulated under the amendments to the Essential Commodities Act (ESA). Stock limits will only be imposed under exceptional circumstances.
Agriculture Marketing Reforms
A Central law will be formulated to provide adequate choice to farmers to sell their produce at remunerative prices. The Act aims to remove any barrier to Inter-State Trade and provide a framework for the e-trading of agriculture produce.
Advantages from the Reforms
The amendments to the ECA and the proposed Central law aim to empower farmers by allowing them to sell their crop to any licensed trader, not just those in the Agricultural Produce Market Committee (APMC) mandis of their respective talukas or districts. These reforms are guided by the Reserve Bank of India’s inflation-targeting within a ceiling of 6%.
The new Central law relies on Article 301 (Freedom of trade, commerce and intercourse) of the Constitution, giving power to the Centre to regulate all interstate and intrastate trade and commerce in foodstuffs, thus creating an integrated national market by removing restrictions placed by APMC laws.