BackFM Sitharaman announces ₹1 lakh crore fund for agri infrastructure
Finance Minister Nirmala Sitharaman today rolled out the third instalment of the ₹20 lakh crore economic stimulusThe package would focus on infrastructure and building capacities in the agriculture and allied activities, Sitharaman said
PremiumFinance Minister Nirmala Sitharaman today rolled out the third instalment of the ₹20 lakh crore economic stimulus announced by Prime Minister Narendra Modi, offering funds to improve farm infrastructure and logistics in the agriculture sector. The package would focus on infrastructure and building capacities in the agriculture and allied activities, Sitharaman said.
The Central government announced ₹1 lakh crore for funding agriculture infrastructure projects at farm-gate and aggregation points. The fund will be aimed at primary agricultural cooperative societies, farmers producers organisations, agriculture entrepreneurs and startups.
This will provide impetus for development for farm-gate or aggregation point affordable and financially viable post harvest management infrastructure, she said.
Citing the lack of adequate cold chain and post harvest management infrastructure in the vicinity of farm gate causes gaps in value chains, Sitharaman said that the fund will be created immediately.
To support agriculture sector, the Centre made minimum support price (MSP) purchases of ₹73,300 crore during the two months of lockdown. Under PM Kisan Fund transfers, ₹18,700 crore has been doled out in cash. Around ₹6,400 crore of payment in crop insurance have been made under the scheme.
Prime Minister Narendra Modi earlier this week announced a cumulative package of ₹20 lakh crore (nearly 10% of GDP) to provide relief to various segments of the economy battered by coronavirus lockdown. This included ₹1.7 lakh crore package comprising free foodgrain and cash to poor for three months announced in March, and ₹5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).
On Thursday, Sitharaman announced ₹2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards. Fishermen and animal husbandry farmers will also be able to get the benefits of this drive. Under this scheme, around 2.5 crore farmers will be covered. This drive will enable farmers to gain access to institutional credit at concessional interest rate.
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