Aatamnirbhar
Government of India’s 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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