Budget 2021 Agriculture: FM Reiterates Commitment To Welfare Of Farmers, Says MSP Procurement To Continue At A Steady Pace

Budget 2021 Agriculture: FY22 Agriculture credit target is set at Rs 16.5 lakh crore and APMC will be given funds to augment their infrastructure, said FM

sitharaman

Budget 2021 Agriculture: As the farmer’s agitation over the Centres’ farm laws went unruly marring the Republic Day celebrations, all eyes were set on the agriculatural sector announcement in the Budget 2021 presented on Monday. Finance Minister Nirmala Sitharaman stressed that the government is committed to the welfare of farmers and added that MSP procurement will continue at a steady pace but refrained from making any comments on the matter. Also Read: Budget 2021: FM Announces Voluntary Scrapping Policy; 20-Yr-Old Private Vehicles To Undergo Fitness Test

As the FM started mentioning about agri sector there was thumping from Treasury and sloganeering by Opposition. up in certain items, she mentioned. 

 What did FM say about agri sector?

In her budget speech for the next fiscal, she said the procurement of crops like paddy, wheat, pulses and cotton has jumped manifold in the last six years. "Our government is committed to the welfare of farmers. The MSP (minimum support price) regime has undergone a sea change to assure price that is at least 1.5 times the cost of production across all commodities," Sitharaman said.

"The procurement has also continued to increase at a steady pace. This has resulted in increase in payment to farmers substantially," she said.

As the minister started highlighting the government's initiatives and achievements in the agriculture sector, opposition members started demanding repeal of three new farm laws.

Sharing the procurement data and amount paid to farmers under MSP operation, Sitharaman said: "In case of wheat, the total amount paid to farmers in 2013-14 was Rs 33,874 crore. In 2019-20, it was Rs 62,802 crore," as per PTI report.

In 2020-21, she said the amount paid to farmers is over Rs 75,000 crore. "The number of wheat growing farmers that were benefited increased in 2020-21 to 43.36 lakh compared to 35.57 lakh in 2019-20. That much of an increase within one year," the finance minister said.

For paddy, Sitharaman said the amount paid in 2013-14 was Rs 63,928 crore. In 2019-20, this increased to Rs 1,41,930 crore. Even better in 2020-21, the minister said this is further estimated to increase to Rs 1,72,752 crore.

Number of paddy farmers benefitted increased from 1.2 crore in 2019-20 to 1.54 crore in 2020-21.

In pulses, Sitharaman said Rs 236 crore was paid to farmers in 2013-14. "In 2019-20, this was increased to Rs 8,285 crore. Now in 2020-21, it is at Rs 10,530 crore, more than 40 times increase from 2013-14."

Similarly, Rs 90 crore was paid in 2013-14 to cotton farmers while Rs 25,974 crore has been paid in 2020-21 as of January 27. Five major fishing hubs will be developed as hubs for economic activity including Chennai, Kochi and Paradip. To promote seaweed farming, I propose a multipurpose sea weed park to be established in Tamil Nadu

Besides this, the FM said 1,000 more Mandis to be integrated into the e-NAM market place. FY22 Agriculture credit target at Rs 16.5 lakh crore, said FM
She also stressed that APMC will be given funds to augment their infrastructure.

Here is what you should know about eNam.

What’s e-NAM?

e-NAM, which was launched in April 2016, is being implemented by Small Farmers Agribusiness Consortium (SFAC), a central government agency, with the support of state governments. The purpose of e-NAM is to create a network of existing mandis on a common online market platform as 'One Nation, One Market' for agricultural commodities in India.

More mandis are being integrated in the current Covid-19 situation as the e-NAM platform provides distant bidding facility for wholesale produce in APMC mandis without physical presence of buyer/trader near the auction site for bidding.

The electronic platform also provides e-payment facility through which traders can pay farmers, after the trade is executed, from anywhere, be it home or office, without going to banks, thus avoiding crowds.

To decongest mandis during Covid-19 lockdown situation, the government has launched new features on the e-NAM platform, enabling direct trading from warehouses as well as collection centres of farmers producers organisations (FPOs), besides logistics support.

In the last four years, the ministry said, e-NAM has registered a user base of 1.66 crore farmers, 1.31 lakh traders, 73,151 commission agents and 1,012 farmers producers organisations (FPOs), as per PTI report.

In 2020, the goverment has said it has achieved integration of 1,000 wholesale mandis, located in 21 states and union territories, with the electronic-National Agriculture Market (e-NAM).

The online trading platform provides a single window service for all mandi related information and services, including commodity arrivals, quality assaying, competitive bid offers and electronic payment settlement directly into farmers' accounts, the ministry said, as per PTI report.

The online digital market aims at reducing transaction costs, bridging information asymmetries, and helping expansion of market access for farmers and other stakeholders, it added.

Farmers can register into the platform by visiting the site enam.gov.in.