APMCs can now tap into agri infrastructure fund
- The Union Budget sent mixed signals to the farmers who have been protesting.
- On the one hand, the budget allocation for the Department of Agriculture, Cooperation and Farmers Welfare was slashed 8.5% in 2021-22. The flagship PM-KISAN scheme, meant to provide income support to farmers, saw a 13% drop in its budget.
- On the other hand, Finance Minister Nirmala Sitharaman’s speech emphasised the government’s track record in paying minimum support prices (MSP) to farmers and the decision to allow State-run Agricultural Produce Marketing Committees (APMCs) to access the 1 lakh crore Agriculture Infrastructure Fund (AIF).
- The AIF was created last year, as part of a COVID-19 stimulus package to develop cold chain storage and other post-harvest management infrastructure.
Agriculture Cess:
- She also announced an Agriculture Infrastructure Development Cess to be levied on petrol, diesel, gold and other imports, to improve facilities for production, conservation and processing of farm produce and thus “ensure enhanced remuneration for our farmers.
Negatives:
- However, farm advocates were not impressed, noting that schemes to provide a remunerative price for farm produce, such as PM AASHA and the Price Support Scheme have seen budget cuts of 20-25%.
- PM KISAN, which gives each landowning farm family Rs. 6,000 of annual income support, has reduced its budget to match last year’s revised estimates which reached 9 crore households, rather than trying to reach out to its original target of 14.5 crore households.
- With regard to the AIF it is said if you introduce laws to weaken the APMC system, then what is the point of giving APMC mandis access to an Agriculture Infrastructure Fund.
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