Finance Minister Nirmala Sitharaman started her budget speech with focus on the agriculture sector as she announced a slew of measures to spur agricultural growth and productivity. She termed agriculture as the “first engine” for India’s development journey.
Her announcements came in the backdrop of the farmers' bodies announcing their decision to hold protests against the government for not acceding to their demand of making the Minimum Support Price a legal guarantee.
Among key proposals include the establishment of separate mission mode schemes for pulses and seeds. Even the public sector banks will develop ‘Grameen Credit Score’ framework to serve the credit needs of self-help group members and people in rural areas; while another programme is aimed at creating job opportunities in the farm sector to stem the migration.
A key announcement for the poll-bound Bihar, FM said a Makhana Board will be set up in Bihar. Sitharaman said it will improve the production, processing, and marketing of makhana as well as support the people engaged in these activities to be organized into farmer producer organisations (FPOs). She added that the Board will provide handholding and training support to makhana farmers, and also work to ensure they receive the benefits of all relevant government schemes.
In another announcement, Sitharaman said a ‘National mission on high yielding seeds’ will be launched with an aim to strengthen the research ecosystem, development and propagation of seeds with high yield. The mission will make available pest-resistant and climate-resilient 100 seed varieties.
To provide conservation support to both public and private sectors for genetic resources and ensure future food and nutritional security, the minister said that the second gene bank with 10 lakh germplasm lines will be set up.
The finance minister announced the ‘Mission for cotton productivity’, with the aim of achieving improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. She said the mission will benefit lakhs of cotton-growing farmers as the best of science and technology support will be provided to farmers. “The mission will help in increasing the income of the farmers as well as ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector,” the minister said.
Noting the importance of Kisan Credit Cards (KCC) in facilitating short-term loans for around 7.7 crore farmers, fishermen, and dairy farmers, the minister announced the enhancement of loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh for loans taken through the KCC.
Sitharaman also announced the setting up of a urea plant with annual capacity of 12.7 lakh metric ton at Namrup, Assam. This, she said, will further augment urea supply and help to achieve Atmanirbharta in urea production, along with the recently reopened three dormant urea plants in the eastern region.
The finance minister, who wore a sari with a Madhubani painting carrying fish motifs referred to the fisheries sector in her speech. She said India ranks second-largest globally in fish production and aquaculture with seafood exports valued at Rs 60 thousand crore. The minister added that the government will bring in an enabling framework for sustainable harnessing of fisheries from the India exclusive economic zone and high seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands, which will unlock the untapped potential of the marine sector.
In another announcement, Sitharaman said the government will undertake a ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states.
Under this scheme, through convergence of existing schemes and specialized measures, the programme will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. “The programme aims to enhance agricultural productivity; adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at the panchayat and block level; improve irrigation facilities and facilitate availability of long-term and short-term credit. This programme is likely to help 1.7 crore farmers,” the budget note said.
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To address the rural economy, Sitharaman said a multi-sectoral ‘Rural prosperity and resilience’ programme will be launched in partnership with states, with an aim to address under-employment in agriculture through skilling, investment and technology.
“The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity,” Sitharaman said. The programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families. In the first phase, 100 developing agri districts will be covered.
To augment the production of pulse, Sitharaman said the government will launch a six-year “Mission for Aatmanirbharta in pulses” with a special focus on Tur, Urad and Masoor. The Union finance minister stated that public sector banks will develop ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas.