Budget 2021: Agriculture Infrastructure Fund to be provided to APMCs, says Nirmala Sitharaman

Union Finance Minsiter Nirmala Sitharaman on Monday announced the Budget 2021-2022 with a focus of increasing the funds for agricultural sector. The agricultural fund will be available to APMCs for their infrastructures.  

She said that Agri Infra Fund will be increased to Rs 40,000 crore, and Micro Irrigation Corpus will be doubled to Rs 10,000 crore.

Stating that the Centre was committed to welfare of farmers, the finance minister said that agriculture procurement has increased steadily, benefiting farmers, amid Opposition slogan shouting against three farm laws.

Sitharaman stated that 43.36 lakh wheat growing farmers benefited from government procurement under MSP as against 35.57 lakh previously, adding that farmers were paid Rs 75,100 crore on wheat MSP in FY21.

The Centre has raised agriculture credit target to Rs 16.5 lakh crore and rural infra development fund has been increased to Rs 40,000 crore in next fiscal from Rs 30,000 crore.

An Operation green scheme to cover 22 more perishable commodities has also been announced along with development of 5 major fishing hubs.

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She informed the Lok Sabha 1,000 more mandis will be integrated with electronic national market.

Bharat Krishak Samaj (BKS), in a pre-budget consultation with the Centre, advocated a balanced use of fertilisers and asked the government to incentivise the same by increasing urea price and lowering rates of phosphatic and potassic (P&K) nutrients.

BKS chairman Ajay Vir Jakhar said reduction in taxes on diesel and transport subsidy on fruits and vegetables should be considered. He also demanded tax on unhealthy foods.

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The Pesticides Manufacturers and Formulators Association of India (PMFAI) had asked the government to reduce the GST (Goods and Services Tax) from 18% to 5%, in line with other farm inputs such as seeds & fertilisers in the upcoming Budget, Krishi Jagran reported.

In the last budget, the Centre committed to double farmers’ income by 2022 and announced 16 action points plan for farmers.

Sitharaman allocated Rs 2.83 lakh crore for agriculture and allied activities, irrigation and rural development in her last budget speech.

She had said, that Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) will be expanded to provide 20 lakh farmers in setting up standalone solar pumps.

Setting up of Kisan rail through PPP arrangement for transportation of perishable goods was also announced along Krishi UDAN by Ministry of Civil Aviation on international and national routes, to improve value realisation in North East and tribal districts.