New Central law to be in place for farmers to sell produce at attractive prices: FM
The announcement was part of the third tranche of the ₹20 lakh crore economic stimulus package that focussed on agriculture, dairy, animal husbandry and allied activities.
Finance Minister Nirmala Sitharaman on Friday said a new Central law will be formulated to provide adequate choices to farmers to sell their produce at an attractive price, to ensure barrier-free interstate trade and to draft a framework for e-trading of agricultural produce.
As part of agricultural marketing reforms to provide marketing choices to farmers, the finance minister said, “Farmers are bound to sell agricultural produce only to licensees in APMCs. Such restriction of sale is not there for any industrial produce. This leads to hindrances in free-flow of agricultural produce and fragmentation of markets while the supply chain is also disrupted.”
“A new Central law will be formulated to provide adequate choices to farmers to sell their produce at an attractive price. It will also ensure barrier-free interstate trade and will put in place a framework for e-trading of agricultural produce,” Sitharaman said.
ALSO READ | Credit boost of ₹2 lakh cr for 2.5 cr farmers through Kisan Credit Cards: Sitharaman
The announcement was part of the third tranche of the ₹20 lakh crore economic stimulus package that focussed on agriculture, dairy, animal husbandry and allied activities. As part of the economic stimulus package, the Centre will also immediately create a ₹1 lakh crore Agri-Infrastructure Fund for farm- gate infrastructure for small and medium farmers, most of whom are marginalized.
On Thursday, as part of the second phase of announcements by the Union Finance Ministry, Sitharaman had announced concessional credit boost worth ₹2 lakh crore to 2.5 crore farmers through Kisan Credit Cards issued by the government.
“A special drive will be undertaken to provide concessional credit to PM-KISAN beneficiaries through Kisan Credit Cards. Fishermen and Animal husbandry farmers will also be included in this drive,” the finance minister had said.
This move by the Centre will also enable farmers to gain access to institutional credit at concessional interest rates. Across the country about 2.5 crore farmers will be covered and will benefit from credit flow of about ₹2 lakh crore. According to finance ministry data, at least, 25 lakh new Kisan Credit Cards are in the pipeline for small and marginal farmers.
Sitharaman indicated that 3 crore marginal farmers have already availed ₹4 lakh crore of loans on concessional rates in the last few months.
This is the third phase of announcements by the Union Finance Ministry elaborating on the Centre’s ₹20 lakh crore economic stimulus package.
