The much publicized and even more widely criticized Rs20trn Self
Reliant India economic recovery package has laid significant emphasis on the
farm sector reforms. The following 10 key promises have been made as part of
the package.
1. Essential Commodities
Act to be amended to enable better price realization for farmers by attracting
investments and making agriculture sector competitive.
2. A central law to be
enacted to provide for inter-state trade and framework for e trading of
agriculture produce.
3. The government to
facilitate appropriate legal framework for an enforceable standard mechanism
for predictable prices of crops at the time of sowing (some sort of contract
farming or forward pricing mechanism).
4. Financing facility of
Rs.1Lakh Cr to be provided for funding Agriculture Infrastructure Projects at
farm gate & aggregation points (Primary Agricultural Cooperative Societies,
Farmers Producer Organizations, entrepreneurs, Start ups, etc.)
5. Rs 10,000 Cr. scheme to
be launched for Formalization of Micro Food Enterprise (MFE). through Cluster
based approach (e g Mango in UP, Kesar in J&K, Bamboo shoots in North East,
Chilli in Andhra Pradesh, Tapioca in Tamil Nadu etc
6. Rs20,000 cr support to
be provided under the Pradhan Mantri
Matsya Sampada Yojana (PMMSY) for integrated sustainable, inclusive development
of marine and inland fisheries. Rs11,000 cr to be provided for activities in
Marine, Inland fisheries and Aquaculture and Rs9,000 cr for infrastructure
including Fishing Harbours Cold chain, Markets etc. Provisions of ban period
support to fishermen (during the period fishing is not permitted) and personal
& boat insurance.
7. Rs 13343cr to be
provided for starting National Animal Disease Control Programme for foot and
mouth disease and brucellosis.
8. Animal Husbandry
Infrastructure Development Fund to be launched with total outlay of Rs15,000
cr.
9. Rs4,000 cr support for
promotion of herbal cultivation covering
10lakh hectare. Rs500 cr scheme infrastructure development related to
integrated beekeeping development centres, collection, marketing and storage
centres, post harvest & value addition facilities etc.
10. Operation Green proposed
to be extended from tomatoes, onion and potatoes (TOP) to all fruits and
vegetables i.e., (TOTAL)
Indubitably, these measures are important and desirable. It is
totally redundant to debate whether these are new measures or part of the work
in progress as part of the plan to double farmers' income within the stipulated
period. The important point is that if the current crisis is leading the
government to accelerate these long pending initiatives, we must welcome this.
However, the second question, which in my view may be more
pertinent, is "whether these measures sufficient or we would need much
more to attain the twin objectives of self reliant India and sustainably higher
economic growth?"
I believe that these measures are important and required. But
these will deliver the desired outcome, only if implemented with the many more
structural reforms in the farm sector. I have shared my views on this issue
before also. I would like to discuss these again in light of the recent
developments, over next couple of days.
