Agriculture Union Budget 2020-2021 Important

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Top 3 Schemes with Highest Allocation

Scheme Allocation for 2020-2021 (crore)

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Rs 75,000 (Highest)

Pradhan Mantri Fasal Bima Yojana (PMFBY) Rs 15,695

Price Stabilisation Scheme (PSS) Rs 2,000

Agriculture, Irrigation and Rural Development – Rs 2,83,202 cr

Under this, a 16 point action plan was listed with a Goal of Doubling farmers’ incomes by 2022. Agriculture
credit target set for the year 2020-21 is Rs 15 lakh crore. For the sector comprising of Agriculture and allied
activities, Irrigation and Rural Development an allocation of about Rs 2.83 lakh crore has been made for the
year 2020-21. Its divided, inter-alia;

  • For Agriculture, Irrigation & allied activities – Rs 1.60 lakh crore
  • For Rural development & Panchayati Raj – Rs 1.23 lakh crore

The 16 points are as follows:

1. Encourage those State governments who undertake implementation of following model laws already issued by the Central government:
• a) Model Agricultural Land Leasing Act, 2016
• b) Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017;, and
• c) Model Agricultural Produce and Livestock Contract Farming and Services (Promotion and
Facilitation) Act, 2018

2. Government is proposing comprehensive measures for 100 water stressed districts

3. Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan Scheme (PM KUSUM) will be expanded: Funds would be provided to 20 lakh farmers for setting up stand alone solar pumps while another 15 lakh farmers will be funded to set up grid-connected 15 lakh solar pumps. PM KUSUM scheme had unveiled in Feb 2019 with an outlay of Rs. 34,422 crore to add a solar capacity of 25,750 MW by 2022.

4. Balanced use of all kinds of fertilizers including the traditional organic and other innovative fertilizers.

5. Establishment of warehousing– On the lines with Warehouse Development and Regulatory Authority (WDRA) norms, govt will provide Viability Gap Funding for setting up efficient warehouses at the block/taluk level on a Public Private Partnership (PPP) mode. Food Corporation of India (FCI) and Central Warehousing Corporation (CWC) shall undertake such warehouse building on their land too.

• Mapping of warehousing- NABARD will be entrusted with mapping and geo-tagging of agriwarehouses across the country. Currently, India has an estimated capacity of 162 million MT of agriwarehousing, cold storage, reefer van facilities etc.

6. Village Storage Scheme– Govt will launch a ‘Village Storage Scheme’ to be run by women’s self-help groups (SHGs), with an aim to provide holding capacity for farmers. Apart from this, women belonging rural areas can will be able to retain their status as “Dhaanya Lakshmi”.

7. Setting up of “Kisan Rail”– To make the transportation of perishable goods (milk, meat, fish, etc) fast, Indian Railways will set up Kisan Rail through Public Private Partnership (PPP). There shall be refrigerated coaches in Express and Freight trains as well.

8. Setting up of Krishi Udaan: In order to assist farmers in transporting agricultural products, Krishi Udaan will be launched by the Ministry of Civil Aviation. This will immensely help improve value realisation (on agricultural products), especially in the north-east and tribal districts.

9. One product one district scheme: In order to promote horticulture, ‘one product one district ‘ has been mooted wherein one district will focus on one horticulture product.

10. Expansion of integrated farming systems in rainfed areas: Integrated farming systems in rainfed areas shall be expanded. The portal on “jaivik kheti” – online national organic products market will also be strengthened.

11. Integration of e-NWR with e-NAM– Financing on Negotiable Warehousing Receipts (e-NWR) has crossed more than`6000 crore. This will be integrated with e-National Agricultural Market (eNAM).

12. Expansion of NABARD re-finance scheme– Proposal to expand the NABARD refinance scheme has been given to cover Non-Banking Financial Company (NBFCs) and cooperatives that are active in agriculture lending.
All eligible beneficiaries of the PM-Kisan scheme—that provides small and marginal farmers a minimum income support of up to Rs 6,000 crore—will also be eligible for the Kisan Credit Card scheme.

13. Elimination of foot and mouth disease by 2025– A goal has been set to eliminate foot and mouth disease,  as well as brucellosis in cattle, peste des petits ruminants (PPR) in sheep and goats by 2025. Coverage of artificial insemination shall be increased from resent 30% to 70%. Also, Mahatma Gandhi National Rural Employment Guarantee Act (MNREGS) would be dovetailed to develop fodder farms.
• Aim- Doubling of milk processing capacity from 53.5 million MT to 108 million MT by 2025.

14. Blue Economy: Our government proposes to put in place a framework for development, management and conservation of marine fishery resources.

15. Fishery production & export to be raised: It has been proposed to raise fish production to 200 lakh tonnes by By 2022-23 and fishery exports to Rs 1 lakh crore by 2024-25.

16. Under Deen Dayal Antyodaya Yojana for alleviation of poverty, 58 lakh SHGs have been mobilised.
Wellness, Water and Sanitation- Rs 96,885 crore
• Allocation to the health sector– Rs 69,000 crore which includes Rs 6,400 Crore for Ayushman
Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
• Allocation to Swachh Bharat Mission– Rs 12,300 crore


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