Advancing Agriculture and Allied Sector through AnBA

Leave a Comment / Agriculture, Agriculture and allied sector, Atmanirbhar Bharat Abhiyaan, Daily Issues, UPPSC, UPSC / By
India’s agricultural sector has shown its resilience amid the adversities of COVID-19 crisis induced lockdowns. According to Economic Survey 2020-21, the Agriculture and Allied activities clocked a growth of 3.4% at constant prices during 2020-21 (first advance estimate).
The Economic Survey observes that as per the Provisional Estimates of National Income released by CSO on 29th May, 2020, the share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country at current prices is 17.8% for the year 2019-20. 

Today’s , Agriculture still support 58% of the population, as against about 75% at the time of independence. The contribution of agriculture and allied sector to Gross Domestic Products (GDP) is 19%.
A mission mode drive to enable Rs. 2 lakh crore credit to boost  to the farm sector by covering  2.5 crore PM-KISAN benificiaries under  Kisan Credit Card Scheme by December 2020.

Finance minister said that during lockdown period Minimum Support Price (MSP) purchases of amount more than Rs. 74,300 crore, PM-KISAN fund transfer of Rs. 18,700 crore and PM Fasal Bima Yojana claim payment of Rs. 6,400 crore have been made.

During lockdown, demand of Milk reduce by 20-25%. Accordingly, 560 Lakh litre per day (LLPD) were procured by cooperative against daily sale of 360 LLPD. Total 111 crore litres of milk extra procured ensuring payment of Rs. 4,100 crore.

Finance Minister announces various reforms to boosting agricultural infrastructure, logistics, capacity building, governance and administrative reforms for agricultural, fisheries and food processing sector (FPS) by the economic package of Atmanirbhar Bharat Abhiyaan (AnBA).

Government announces 11 measures, out of 11 measures, 8 measures are for improving agricultural infrastructure and 3 measures are for administrative and governance reforms, including removing restrictions on sale and stock limits of farm produce.
Finance minister announces measures to strengthen Agricultural Allied Sectors like infrastructure, logistics, capacity building, Food Processing sector (FPS) –
1. Rs. 1 lakh crore Agri  Infrastructure Fund for farm-gate infrastructure for farmers : This amount of financial facilities will be allocated at Agricultural Infrastructure Projects of farm-gate & aggregation points (primary Agricultural Cooperative societies, farm producer organisations, agriculture entrepreneurs, start-ups, etc). It will improve farm-gate & aggregation point, affordable and financially viable Post Harvest Management Infrastructure. Fund will be created immediately.
Why is it Need ?
+Due to lack of  cold chain & post harvest management infrastructure.
+Less focus on long term loans for agricultural infrastructure.
+Loss of agri-products from field to concumers.
2. Rs. 10,000 crore sheme for Formalisation of Micro Food Enterprises (MFE) :
+This scheme is a part of vision of Hon’ble Prime Minister : ‘Vocal for Local with Global outreach’.
+It will help 2 lakh MFEs for technical upgradation to attain FSSAI food standards.
+ Existing micro food enterprises, farmer producer organisations, self help groups and cooperative to be supported. 
+ The focus will be on women and sc/st owned units  and those in Aspirational districts and a cluster based approach (e.g. Mango in UP, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed. 
3. Rs. 20,000 crore for fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY) :
+To increase fisheries value chain.
+Government will launch the PMMSY for integrated, sustainable, inclusive development of marine and inland fisheries.
+Rs. 11,000 Cr for activities in Marine, Inland fisheries and aquaculture.
+Rs. 9000 Cr for Matsya infrastructure – Fishing Harbours, Cold chain, Market etc.
+Cage Culture, Seaweed farming, Ornament fisheries as well as New Fishing Vessels, Traceability, Laboratory Network etc. will be key activities.
+There will be provisions of Ban Period Support to Fishermen (during the period fishing is not permitted), Personal and Boat Insurance.
+This will provide additional fish Production of 70 lakh tonnes over 5 years, employment to over 55 lakh persons and double the exports to Rs. 1,00,000 Cr.
+The focus will be on Islands, Himalayan States, North-east and Aspirational Districts.

4. National Animal Disease Control Program :
+This is Pan India Programme for control Foot and Mouth Disease (FMD) and Brucellosis launched with total outlay of Rs. 13,343 Cr.
+It ensures 100% vaccination of cattle, buffalo, sheep, goat, and pig population (total 53 crore animals) for foot and mouth disease (FMD) and for Brucellosis.
+Till date, 1.5 Crore cows & buffaloes tagged and vaccinated.

5. Animal Husbandry Infrastructure Development Fund – Rs. 15,000 crore :
+It will be set up, with an aim to support private investment in Dairy Processing, value addition and cattle feed infrastructure.
+Establishing plants for export of niche Products will be with incentives.

6. Promotion of Herbal Cultivation : Rs. 4000 Crore :
+National Medicinal Plants Board (NMPB) has supported 2.25 lac hectare area under cultivation of medicinal plants.
+10,00,000 hectare will be covered under Herbal cultivation in next two years with outlay of Rs. 4000 Crore.
+It will generate Rs. 5,000 crores income for farmers.
+Network regional Mandis for Medicinal Plants.
+NMPB will bring 800 hectare area by developing a corridor of medicinal plants along the banks of Ganga.

7. Beekeeping initiative – Rs. 500 crore :
+Supporting income for rural areas.
+Increase yield & quality of crops through pollination.
Government will implement a scheme for –
+Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing band Storage Centres, Post Harvest & value Addition facilities etc.
+Implementation of standards & Developing traceability system.
+Capacity building with thrust on women.
+Development of quality nucleus stock and bee breeders.
This will lead to increase in income for 2 lakh beekeepers and quality honey to consumers.

8. From ‘TOP’ to Total – Rs. 500 crore :
+ TOP (Tomato, Onion, Potato) is a part of ‘Operation Green’ under Ministry of Food Processing Industries (MOFPI). It will be extended to All fruit and vegetables.
+The scheme would provide 50% subsidy on transportation from surplus to deficient markets, 50% subsidy on storage, including cold storages and will be launched as pilot for the next 6 months and will be extended and expanded.
+This will lead to better price realisation to farmers, reduced wastage, affordability of products for consumers.

Finance Minister announced 3 measures for Governance and Administrative Reforms for Agriculture Sector :

1. Amendment to Essential Commodities Act to enable better Price realisation for farmers :
+The Government will amend Essential Commodities Act.
+Agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onion and potato shall be deregulated.
+Stock limit will be imposed under very exceptional circumstances like national calamities, famine with surge in prices.
+ There shall be no stock limit apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand.

2. Agriculture Marketing Reforms to provide marketing choices to Farmers :
A Central law will be formulated to provide –
+Adequate choices to the farmers to sell their produce at remunerative price.
+Barrier free Inter-State Trade
+A framework for e-trading of agriculture produce.

3. Agriculture Produce Pricing and Quality Assurance :
The government will finalize a facilitative legal framework to enable farmers to engage with processors, aggregators, large retailers, exporters etc. in a fair and transparent manner. Risk mitigation for farmers, assured returns and quality standardization shall form integral part of the framework.

Agriculture and allied sector in India is advancing by comprehensive economic packages (Atmanirbhar Bharat Abhiyaan). It will be resulted as better livelihood and Self-reliant Bharat.

Economic Survey 2020-21 : Agriculture and Allied Sectors :

• Record Foodgrain Production : Agriculture in 2019-20, total good grain production in the country is estimated at record 296.65 million tonnes from the production of food grain of 285.21 million tonnes achieved during 2018-19.
• Agricultural Exports : In 2019-20, India’s agricultural and allied exports amounted to approximately Rs. 252 thousand crores. India’s total agri-export basket accounts for a little over 2.5% of world Agro-based.
• Minimum Support Price (MSP) : The Union Budget for 2018-19 had announced that MSPs would be kept at the level of 1.5 times of the Cost of production. By this principle, Government recently increased the MSPs for all mandated Kharif and Ravi crops for 2020-21 season.
• Three New Agricultural Reforms : It is primarily for the benefit of small and marginal farmers which constitute around 85% of the total number of farmers and are the biggest suffer of the regressive APMC regulated market regime. The three legislations are started a new  era of market freedom which can go a long way in the improvement of farmer welfare in India.
• Agricultural Credit : The Economic Survey says “Given the large proportion of resource of constrained small and marginal farmers in India, timely availability of adequate credit is fundamental for the success of farming activities.” 
The agriculture credit flow target for 2020-21 has been fixed at 13,50,000 crore and target achievement was 13,92,469.81 crores.
The agriculture credit flow target for 2020-21 has been fixed at 15,00,000 crores and till 30th November, 2020 a sum of 9,73,517.80 crore was disbursed.
Agriculture Infrastructure Fund announced as a part of Atma Nirbhar Bharat Abhiyan will further boost credit flow to the agriculture sector. (E.g. Kisan Credit Card).
• Pradhan Mantri Fasal Bima Yojana (PMFBY) : It covers over 5.5 crore farmers application year on year. As on 12th January, 2021, claims worth Rs. 90,000 crores have already been paid out under the Scheme. 
During COVID-19 lock down period nearly 70 lakh farmers benefited and claims worth Rs. 8741.30 crores were transferred to the beneficiaries.
• PM-KISAN : The Economic Survey says “An amount of 18000 crore have been deposited directly in the bank account of 9 crore farmer families of the country in December, 2020 in the 7th installment of financial benefit under the PM-KISAN scheme.”
• Livestock Sector : The Livestock sector grew at CAGR of 8.24% during 2014-15 to 2018-19. Livestock sector contributed 4.19% of total GVA in 2018-19.
• Fisheries : The Economic Survey says – the fish production in India has reached an all-time high of 14.16 million metric tons during 2019-20. It constituted 1.24% of the total national GVA and 7.28% of the agricultural GVA.
• Food Processing Industries : The Economic Survey says that during the last 5 years ending 2018-19, Food Processing Industries (FPI) sector has been growing at an Average Annual Growth Rate (AAGR) of around 9.99% as compared to around 3.12% in Agriculture and 8.25% in Manufacturing at 2011-12 prices.

References
PIB
GoI

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