Finance Minister Announces Third Tranche of Rs 20 Lakh Crore Economic Package

India’s FM Nirmala Sitharaman on Friday announced the third tranche of the economic package, valued at Rs 20 Lakh crore. Modi’s governance continues aiming for measures to revive the nation’s economy, which has been negatively impacted from ongoing lockdown situation. As part of our PM’s campaign for a “Self Reliant” India, the FM today announced important measures such as providing working capital incentives for street vendors, loans for business including MSME’s without any collateral. Concessional credit for farmers, free food grains for migrant workers, liquidity facilities NBFC’s etc. This package focuses on Agriculture, Fisheries, Animal Husbandry and allied activities.

The highlights of Finance Ministers speech are given below

Amendment to be incorporated in the Essential Commodities Act for better price remunerations for growers or the farmers. The amendment is also aimed to de-regularize Agricultural produce like pulses, edible oils, oilseeds, cereals, onions and potatoes. As an amendment, limits to be applied for stocking the agricultural products during un regular conditions like natural calamities, famine etc. The stock limit will be applicable for processors subject to their installation capacity. It will be applicable for exporters as well, subject to the export demand for respective products.

Financing up to Rs 1 Lakh Crore to be provided, for funding Agro based Infrastructure projects at farm gates etc. This will be a welcome move for strengthening Agriculture Infrastructure. Next strong measure is involvement of Law while implementing Agriculture marketing reforms. Law implementation will be beneficial in providing adequate choices to farmers to sell their produce at decent rates.  

Allocation of Rs 500 Crore for bee keeping initiatives, aimed at economic welfare of 2 Lakh bee keepers of rural areas.  Focus on providing better price of farmers growing Tomato, Onion, potatoes and other fruits and vegetables, apart from reducing wastage and improving consumers’ financial ability to avail the products.  

Scheme for helping 2 Lakh Micro Food enterprises, better health and safety standards, integration with retail markets and enhancing incomes shall be other major areas of focus. The government has initiated transfer of Rs 18,700 crores under schemes like PM Kisan and PM Fasal Bima Yojna claims worth Rs 6400 Crores in past two months. In order to cover 10 Lakh hectare herbal cultivation in next 2 years, Rs 4000 crores to be provided.

Launch of National animal disease control program for foot and mouth disease of animals, valued at Rs13,343 crores. This announcement is for cattle, buffalo, goat, sheep and pig vaccinations. Pradhan Mantri Matsya Sampada Yojna to be launched for developing inland and marine fisheries for reducing gaps in the value chain system. The scheme is aimed for providing employment to more than 55 Lakh people and increase exports to 1 Lakh crore. Since demand for milk has fallen by nearly 25% during lockdown, a new scheme will be launched to provide interest subvention at 2% annum to dairy co-operatives. The scheme is expected to enhance liquidity of Rs 5000 crore and benefit nearly 2 crore farmers.