Good News! Nirmala Sitharaman Announces Rs. 15,000 crore Additional Subsidy for Farmers

Finance Minister Nirmala Sitharaman has announced a raft of measures on Monday, June 28 for the recovery of the economy hit by Covid-19, including an increased subsidy for farmers. 

According to the Finance Minister, an additional sum of Rs 14,775 crore would be supplied, which will include a core additional subsidy of Rs 9,125 crore for DAP and a core additional subsidy of Rs 5,650 crore for NPK-based complex fertilizer. 

According to figures revealed during the press conference, a record 432.48 lakh MT of wheat was procured in Rabi marketing Season (RMS) 2021-22, compared to 389.92 lakh MT in RMS 2020-21. 

Farmers have also received Rs 85,413 crore. In FY 2020-21, the existing NBS subsidy was Rs 27,500 crores, which was increased to Rs 42,275 crores in FY 2021-22. 

The Pradhan Mantri Gareeb Kalyan Yojana was also discussed during the meeting (PMGKAY). PMGKAY was founded on March 26, 2020 to help the poor who are suffering as a result of the Covid-19 pandemic's economic upheaval. 

Following the second wave of the epidemic, the scheme was extended until November 2020, and it was restarted in May 2021 to assure poor people's food security. 

According to the report, NFSA users will receive 5 kg of food grains free of charge from May to November 2021. The financial ramifications are expected to be Rs 93,869 crore, taking PMGKAY's overall cost to Rs 2,27,841 crore. 

Few other important measures announced by Finance Minister Nirmala Sitharaman include: 

A loan guarantee scheme worth Rs 1.1 lakh crore for COVID19-affected sectors. The health sector would receive Rs 50,000 crore to expand its infrastructure. Other sectors would receive Rs 60,000 crore. In the field of health: The maximum loan amount is Rs 100 crore, and the maximum interest rate is 7.95 percent. For other industries, the maximum interest rate is set at 8.25 percent. Coverage will be adjusted in response to changing needs. 

ECLGS's scope has been broadened; the entire cap has been raised from Rs 3 lakh crore to Rs 4.5 lakh crore. Rs 2.69 lakh crore in loans given under the scheme so far, totaling 1.1 crore units. 

The Credit Guarantee Scheme was introduced to give loans to small borrowers through MFIs, with a maximum loan amount of Rs 1.25 lakh and an interest rate of 2% less than the RBI's authorized rate. Focus on new loans and stressed borrowers, with the exception of nonperforming assets (NPAs) must be covered. Under the scheme, loans are for a period of three years. 

The AatmaNirbhar Bharat Rozgar Yojana has been extended from June 30, 2021 to March 31, 2022. The scheme has already benefited around 21.4 lakh people from approximately 80,000 businesses. 

Farmers would receive an almost Rs 15,000 crore protein-based fertilizer subsidy. 

Pradhan Mantri Garib Kalyan Anna Yojana would distribute free food grains to the poor from May to November 2021. The entire financial impact is close to Rs. 94,000 crore, making PMGKY's total cost close to Rs. 2.28 lakh crore.