Amid expectations of maximum procurement of Kharif harvest by government, extensive market connectivity and further increment on minimum support prices the Finance Minister (FM) Nirmala Sitharaman announced allocation of funds to agriculture sector as part of the economic stimulus package mentioned by the Prime Minister Narendra Modi on May12.
These announcements made on May 14 were focussed on helping the small farmers but more measures may come in the future, FM clarified.
FM mentioned that more than 3-crore farmers availed agriculture loans worth Rs 4.22 lakh crore with extension of moratorium of three months has been given. Such loans are further entitled with extension of interests and concession on timely returns informed FM.
A release of 25 lakh new Kisan credit cards with Rs 25, 000 crore new loans on them had been feature of this governments pro-farmer policy during lockdown, FM said.
A massive 63 lakh number loans has been approved during March and April where Rs 86, 000 crore loans were dispersed, informed FM.
This was apart from Rs 4, 200 crore rural infrastructure development fund by union government informed FM. Adding to the ongoing efforts for farming and rural community FM stressed on the support of Rs 6, 700 crore Union Government to states for agriculture produce procurement. This somehow reflects from ground as it is very much evident that procurement of Rabi crops on MSPs has largely been a successful excercise for the government during a challenging period of lockdown.
FM has also shared that many of migrant workers registered themselves to respective gram panchayats (their hometowns). Announcements by various state governments to ensure engagement of more workforce in MGNREGA had sent positive signal to migrant labour community . Especially those who had registered themselves suggests the data shared by FM.
The only additional announcement for small farmers were an additional 30,000 Cr Rs amount of emergency assistance fund apart from NABARDs existing 90,000 Cr Rs annual fund. This can be extended through regional cooperative, small cooperative and rural cooperative banks. This additional fund can be used for current Rabi harvesting and for preperation of Kharif sowing season. Also the extension of two lakh Cr Rs credit to be facilitated via Kisan Credit Card to 2.5 crore farmers. Fishermen and farmers engaged in animal husbandry will also be entitled with through the extension big this massive Rs two lakh crore credit.
BW Reporters
The author is correspondent with BW Businessworld
