The FM also announced an increase in agriculture credit target to Rs 16.5 lakh crore in FY 2021-22 (10% higher than FY 2020-21) & assured better flow to animal husbandry, dairy, and fisheries sectors
The Agriculture and Farmers’ Welfare Ministry has 5.63% more budget allocation at Rs 1,31,531 crore for 2021-22. For this fiscal the revised budget is estimated to be Rs 1,24,519 crore
Of the total allocation, the Department of Agriculture and Farmers’ Welfare gets Rs 1,23,017.57 crore while Department of Agricultural Research and Education has been allocated Rs 8,513.62 crore
The allocation for 10 central schemes has been increased marginally by Rs 1,856.51 crore to Rs 1,05,018.81 crore for 2021-22 from the current fiscal
The Government has increased the allocation for formation and promotion of 10,000 farmer producer organisations (FPOs) by Rs 500 crore to Rs 700 crore and agriculture infrastructure fund has been increased by Rs 692 crore to Rs 900 crore
The Minster also announced enhancing the allocation to the Rural Infrastructure Development Fund of Rs 10,000 crores to Rs 40,000 crores along with the doubling of the NABARD led Micro Irrigation Fund to Rs 10,000 crore
The FM has categorically reiterated the Government’s commitment to double farmer income and introduced an agri-infra and development cess in the range of 2.5 to 100 per cent on certain commodities to create post-harvest infrastructure for improving farmers’ income. The Government expects to raise Rs 30,000 crores through this cess. This cess will be off-setted by reduction in basic duties so that the end-consumer is not impacted for most of the items
In a tacit move to indicate that MSPs and APMCs are here to stay, the FM indicated the Government’s commitment to MSP by reiterating a price of at least 1.5 times the cost of inputs across commodities
The FM further assured that procurement under the MSP is on the rise and farmers continue to get more monies. She mentioned MSP paid to wheat farmers has gone up by more than 120% since 2013-14 and the number of wheat growing farmers availing MSP increased in 2020-21 to 43.36 lakhs from 35.57 lakhs in 2019-20
Paddy farmers too have gotten more than 170% as MSP since 2013-14 and the number of farmers benefitted increased from 1.24 crores in 2019-20 to 1.54 crores in 2020-21
For pulses too, the amount paid in 2020-21 is more than 40 times higher 2013-14. Similarly, the cotton farmers too got an increase 287 times in the same period
The Minister has expanded the beneficiaries of Rs 1 trillion ‘The Agriculture Infrastructure Fund’ to include APMCs for augmenting their infrastructure facilities
The ‘Stand up India’ scheme meant for providing credit to SC/ST has been further expanded to include activities related to agriculture. Furthermore, the margin money requirement has been reduced to 15% from 25%
To protect and benefit the Indian farmers the FM has introduced a customs duty on cotton of 10% and increased the duty on raw silk and silk yarn from 10% to 15%. The Government is uniformly calibrating the custom duty on items like maize bran, rice bran oil cake, and animal feed additives to 15%
In an effort to boost value addition in agriculture and allied products and their exports, the ‘Operation Green Scheme’ that is presently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products
The FM mentioned that around e-NAM has brought in transparency and competiveness. She said further 1,000 more mandis will be integrated with it. 1.68 crores farmers and Rs 1.14 lakh crores of trade value has been carried out through e-NAM
FM has proposed to discontinue the National Small Saving Fund Loan to FCI for Food Subsidy and accordingly Budget Provisions have been made in RE 2020-21 and BE 2021-22
The SWAMITVA Scheme under which, a record of rights is being given to property owners in villages is being extended to cover all states/UTs. Up till now, about 1.80 lakh property-owners in 1,241 villages have been provided cards.
The budget slashed funding for several flagship farm schemes. Overall, the budget for agriculture and allied sectors was cut to Rs 1.48 trillion in 2021-22 (budget estimates) from Rs 1.55 trillion in 2020-21
Funds for PM-Kisan, the direct cash support scheme for farmers under which they receive a cash support of Rs 6,000 pa, is shrunk by Rs 10,000 crores to Rs 65,000 crore in 2021-22 (BE)
Interest subsidy on short term crop loans to farmers is reduced by Rs 1,707 crore to Rs 19,468 crores in 2021-22 (BE)
The price support scheme oilseeds and pulses at support prices reduced by Rs 500 crore to Rs 1,500 crore (2021-22 BE)
PDS
One Nation One Ration Card plan covering 69 crores people which is 86% of all beneficiaries implemented by 32 states/UTs will be extended to cover the remaining four states/UTs
The mid-day meal scheme saw an increase of Rs 500 crore as the total allocation has been raised to Rs 11,500 crore from Rs 11,000 last year
The supplementary nutrition programme and the Poshan Abhiyaan has been merged to launch Mission Poshan 2.0 to strengthen nutritional content, delivery, outreach, and outcome, an amount of Rs 20,105 crore has been assigned to Saksham Anganwadi and Poshan 2.0.
