Announcement for agriculture sector in Union Budget 2020-21

Our government is committed to the goal of doubling farmers’ incomes by 2022. We have provided energy sovereignty through KUSUM and input sovereignty through ParamparagatKrishiVikasYojana. We have
provided resilience for 6.11 crores farmers insured under PM FasalBimaYojana. Focus on cultivation of pulses, expansion of micro?irrigation through KrishiSinchaiYojana, have raised the self?reliance of the
country. Provision of any annual supplement of the income to the farmer, directly is done through PM?KISAN. Connectivity through PMGSY, financial inclusion have helped raise farm incomes.

(1). Prosperity to farmers can be ensured by making farming competitive. For this, farm markets need to be liberalized. Distortions in farm and livestock markets need to be removed. Purchase of farm produce,
logistics and agri?services need copious investments. Substantial support and hand?holding of farm?based activities such as livestock, apiary, and fisheries need to be provided for. Farmers desire integrated solutions covering storage, financing, processing and marketing.

Adopting sustainable cropping patterns and bringing in more technology are integral to our plan. All this and more can be achieved through working with and in cooperation with the States.

The following 16 action points indicate our focus:
(1). We propose to encourage those State governments who undertake implementation of following model laws already issued by the Central government:
a) Model Agricultural Land Leasing Act, 2016
b) Model Agricultural Produce and Livestock Marketing
(Promotion and Facilitation) Act, 2017

c) Model Agricultural Produce and Livestock Contract Farming
and Services (Promotion and Facilitation) Act, 2018

(2). Water stress related issues are now a serious concern across the country. Our government is proposing comprehensive measures for one hundred water stressed districts.

(3). In the Budget speech of July 2019, I had stated that “annadata” can be “urjadata” too. The PM?KUSUM scheme removed farmers’ dependence on diesel and kerosene and linked pump sets to solar energy. Now, I propose to expand the scheme to provide 20 lakh farmers for setting up stand?alone solar pumps; further we shall also help another 15 lakh farmers solarise their grid?connected pump sets. In addition, a scheme to enable farmers to set up solar power generation capacity on their fallow/barren lands and to sell it to the grid would be operationalized.

(4). Our government shall encourage balanced use of all kinds of fertilizers including the traditional organic and other innovative fertilizers. This is a necessary step to change the prevailing incentive regime, which encourages excessive use of chemical fertilizers.

BhumitiruthiUnn
– Wise, Old Tamil Woman Saint poet Aauvaiyar – Sangam Era
“Aaathichoodi” verse 81
The meaning of this saying is that one must “first tend to till one’s land and then eat”. One must eat only after work.

(5). India has an estimated capacity of 162 million MT of agri?warehousing, cold storage, reefer van facilities etc. NABARD will undertake an exercise to map and geo?tag them. In addition, we propose creating warehousing, in line with Warehouse Development and Regulatory Authority (WDRA) norms. Our government will provide Viability Gap Funding for setting up such efficient warehouses at the block/taluk level. This can be achieved, where States can facilitate with land and are on a PPP mode. Food Corporation of India (FCI) and Central Warehousing Corporation (CWC) shall undertake such warehouse building on their land too.

(6). As a backward linkage, a Village Storage scheme is proposed to be run by the SHGs. This will provide farmers a good holding capacity and reduce their logistics cost. Women, SHGs shall regain their position as “Dhaanya Lakshmi”.

(7).To build a seamless national cold supply chain for perishables, inclusive of milk, meat and fish, the Indian Railways will set up a “Kisan Rail”– through PPP arrangements.There shall be refrigerated coaches in Express and Freight trains as well.

(8).KrishiUdaan will be launched by the Ministry of Civil Aviation on international and national routes. This will immensely help improve value realization especially in North?East and tribal districts.

(9). Horticulture sector with its current produce of 311million MT exceeds production of food grains. For better marketing and export, we propose supporting States which, adopting a cluster basis, will focus on “one product one district”.

(10). Integrated farming systems in rainfed areas shall be expanded. Multi?tier cropping, bee?keeping, solar pumps, solar energy production in non?cropping season will be added. Zero?BudgetNatural Farming (mentioned in July 2019 budget) shall also be included. The portal on “jaivikkheti” – online national organic products market will also be strengthened.

(11).Financing on Negotiable Warehousing Receipts (e?NWR) has crossed more than`6000crore. This will be integrated with e?NAM.

(12). Non?Banking Finance Companies (NBFCs)and cooperatives are active in the agriculture credit space. The NABARD re?finance scheme will be further expanded. Agriculture credit target for the year 2020?21 has been set at ` 15 lakh crore. All eligible beneficiaries of PM?KISAN will be covered under the KCC scheme.

(13). Our government intends to eliminate Foot and Mouth disease, brucellosis in cattle and also peste des petits ruminants(PPR) in sheep and goat by 2025. Coverage of artificial insemination shall be increased from the present 30% to 70%. MNREGS would be dovetailed to develop fodder farms. Further, we shall facilitate doubling of milk processing capacity from 53.5 million MT to 108 million MT by 2025.

(14). Blue Economy: Our government proposes to put in place a framework for development, management and conservation of marine fishery resources.

(15).Youth in coastal areas benefit through fish processing and marketing. By 2022?23, I propose raising fish production to 200 lakh tonnes. Growing of algae, sea?weed and cage Culture will also be promoted.

Our government will involve youth in fishery extension through 3477 SagarMitras and 500 Fish Farmer Producer Organisations. We hope to raise fishery exports to ` 1 lakh crore by 2024?25.

(16).Under DeenDayalAntyodayaYojana for alleviation of poverty, 58 lakh SHGs have been mobilised. We shall further expand on SHGs.

Now, for the fund allocation for the 16 different steps mentioned above, they are being stated under two different categories:

For the sector comprising of Agriculture and allied activities, Irrigation and Rural Development an allocation of about 2.83 lakh crore has been made for the year 2020?21 . Its divided, inter?alia;
a) For Agriculture, Irrigation & allied activities ? ` 1.60 lakh crore
b) For Rural development &Panchayati Raj ? ` 1.23 lakh crore

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