Highlights of budget for farmer
- Union minister Piyush Goyal on Friday said the scheme for 6,000 cash transfer to farmers — which has been criticised through the day by the opposition — was just an “initial measure” meant as a “mark of respect” to farmers. Efforts are on to find a “sustainable solution” to the problems the farm sector is facing, he said. The farmer income support scheme will cost Rs 75,000 crore per year.
- The FM also raised allocation under MNREGA to Rs 60,000 crore for FY20.
- Another Rs 19,000 crore has been provided under the rural roads scheme for FY20.
- The FM has also increased allocation for Gokul scheme to Rs 750 crore.
- The government’s emphasis will be on generating higher incomes for farmers, by helping them produce more with lesser cost and earn higher income for their produce.
- The government wants to assist farmers to earn 1.5 times the production cost, and the Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the produce price.
- The government would be working with the states to ensure that all farmers get a fair price.
- Niti Aayog would also be developing appropriate policies through which farmers would be able to get the right price for their crops.
- More than 86 per cent farmers are small and marginal. To assist these farmers, the government has decided to develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets(GrAMs).
- Organic farming will be encouraged and women self help groups will be encouraged to take up organic farming under national rural agriculture programme.
- Kisan credits cards will be provided to fisheries and animal husbandry farmers to help them meet their working capital needs. Small and marginal farmers will get more benefits.
- The agricultural credit target has also been increased from Rs 8.5 lakh crore to Rs 11 lakh core.
Benefit of cash transfer to farmers
- It is 12 crore people in initial states. Thus, we could move forward with this scheme in the coming years.
- It will encourage the states to develop such schemes complementing center’s efforts.
- It will be a gamechanger to move away from unnecessary subsidies to cash transfer.
- It is not the answer to the agrarian distress but will bring immediate relief in terms of execution of the work.
- Consumption which was lagging will be kickstarted with the present scheme.
Behavioural changes incorporated through budget
- Interest subvention scheme of 3% for payment of loan on time will ensure behavioural changes
- Saman Nidhi which aims to restore dignity of farmer is a much better than MSP intervention