Press "Enter" to skip to content

Budget 2021: Govt banks on bigger agri credit score pie in instances of farm unrest

Finance minister Nirmala Sitharaman stated, “We will focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries”.

Prabhudatta Mishra

Budget FY22 units the agricultural credit score goal at `16.5 lakh crore, up from `15 lakh crore in FY21. Presenting the Budget, finance minister Nirmala Sitharaman stated, “We will focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries”. While the 10% enhance is anticipated to spice up farmers’ entry to institutional credit score, particularly with protection prolonged to allied actions of the agri sector, the FY21 precise disbursal stood at `11.three lakh crore as of December 31, 2020.

She highlighted how the Centre had elevated the MSP for a spread of crops and had stepped up procurement of cotton, jute, copra, pulses and oilseeds, along with wheat and rice, over the previous six years. Against the elevated procurement of pulses and oilseeds since 2013-14, the FY22 budgetary allocation for 2 schemes for these crops — PM Aasha and Price Support Scheme/Market Intervention Scheme (PSS/MIS) — has been reduce by 20% and 25%, respectively, to `400 crore and `1,500 crore, from the FY21 BE. Both the schemes promise to pay as much as 25% of losses, if any, to Nafed, the procurement company, in shopping for of copra, pulses and oilseeds at MSP from farmers and promoting within the open market. Farmer protests have put strain on the Centre to withdraw the not too long ago enacted farm legal guidelines and assure MSP via laws.

With a extra life like image rising from farmers’ enrolment information for the PM Kisan Samman Nidhi — solely 11.5 crore farmers have signed up for the scheme that provides an earnings help of `6,000 per 12 months, in opposition to the federal government’s estimate of 14 crore, and 10.5 crore have acquired the quantity due after verification — the Centre has introduced down the allocation for the scheme to `65,000 crore, from the FY21 BE of `75,000 crore. The allocation for the Rural Infrastructure Development Fund (RIDF) has been raised by over 33% to `40,000 crore, and that for Micro Irrigation Fund (MIF) has been doubled to `10,000 crore. Under these schemes operated by Nabard, states get credit score at subsidised rates of interest to undertake developmental works. The off-take below RIDF was `16,365 crore and below MIF was `1,755 crore within the present fiscal (as of January 31).

The FM additionally stated 1,000 extra mandis will probably be added below the e-NAM, over the 1,000 already linked. Against the backdrop of the protesting farmers voicing apprehension that mandis run by the Agriculture Produce Market Committees (APMCs) will shut down following the implementation of the brand new farm legal guidelines — the Centre has categorically assured the opposite — APMCs might avail of the `1-lakh-crore Agriculture Infrastructure Fund introduced final 12 months below the Atmanirbhar Bharat umbrella.

Be First to Comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    %d bloggers like this: