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Aatamnirbhar

                                                           Aatamnirbhar

Government of Indias Aatamnirbhar package III has been focused on agriculture and allied activities. It has touched upon some of the stickiest and difficult reforms which have seen opposition from several decades. While creation of farm gate infra and food processing push is positive, biggest move seems to be

1) removal of restrictions on interstate movement of food

2) freedom for farmers to sell directly to retailers and processors ensuring farm to fork concept by bypassing APMC

3) reforms in essential commodities act to ensure more processing, exports and removal of export limits etc. we believe these measures are not going to provide any short cut solutions, but will usher in new phase in growth of farm income and agriculture class which is ~60% of population.

 

Farm gate infra: Rs1000bn for aggregators/FPO/ primary Agri societies for strengthening farm gate infra like cold chains, post-harvest infra where all startups can get funds which will help not only domestic but also export markets

Micro food enterprises : Rs100bn fund for cluster based approach for creating global standard products. Health, organic, wellness, nutrition products 0.2mn units will benefit. Eg Makhana in Bihar and Ragi in Karnataka, Kesar in Kashmir, Bamboo in NE.

Matsya Sampada Yojana:  Marine, Aquaculture and Fisheries aiming to double exports to Rs1000bn. New fishing harbors, Boats, Infra insurance etc. Additional fish production of 7Mn MT

Animal vaccination at the cost of Rs133bn for foot and mouth disease. This will increase production and product acceptability in international markets.

Dairy Infrastructure: Rs150bn to be spent for dairy infrastructure, including private investment in dairy, cattle field and plans for export of niche products.

 Herbal and medicinal plants cultivation- Rs40bn for cultivation of herbal and medicinal plants. Upto 1mn hectares area addition under this. 800hectars corridors on both sides of Ganga.

�   Bee Keeping: Rs5bn for bee keeping will benefit 0.2mn bee keepers. Today all wax is imported.

�   Supply Chains: Operation greens for tomatoes, onions and potatoes which are perishables. Now it is being extended for other veggies as a pilot for 6 months. 50% subsidy for transportation and 50% for storage.

�   Essential Commodities Act: Exists since 1955, when food shortages were rampant. Requires amendment to make sure that cereals, oilseeds, pulses, onions, potato, etc. deregulated and no stock limits will apply and creates problems for food processors and exports. If prices increase by 50-100% in wholesale and retail prices, then essential steps can be undertaken and also in case of emergency situations

�    Movement and sale of Agri Products; Central law so that farmers have a choice to sell the produce where ever they want. Restriction on interstate movement of food and sale only to holders of licenses and E trade. Now they can sell outside the vegetable and grain markets. This in a way amends the much awaited Agri marketing reforms.

�  Standard Mechanism for predictable price: No visibility on pricing well before the season. If farmer can be assured of price and quantity at the time of sowing. Legal framework for direct selling, sale to retailers, processors and exporters.

 Courtesy : Prabhudas Lilladher Research


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