The Interim budget 2019 was expected to focus on the agricultural community, and all schemes and announcements seem like building blocks, carefully being laid down, to achieve the larger objective of doubling the income of farmers by 2022.
The Pradhan Mantri Kisan Samman Nidhi or PM-KISAN is a way forward for the agrarian economy. The structural income support is a huge relief to small and marginal farmers, safeguarding them from price fluctuations and inflation.
The government, over the years, has announced several schemes such as Dairy Processing and Infrastructure Development Fund (DPIDF), Animal Husbandry Infrastructure Development Fund (AHIDF) and Fisheries and Aquaculture Infrastructure Development Fund (FIDF) to support allied industries such as animal husbandry, dairy and fisheries.
The interim budget too saw several measures aimed at encouraging farmers to adopt allied sectors as well. The introduction of Kisan Credit Card (KCC) for animal husbandry and fisheries is a positive step since it ensured better cash flow and credibility for farmers. The step will encourage farmers to avail credit facilities in allied sectors and utilise the same to achieve operational efficiency.
Additionally, the government announced the creation of a separate department for fisheries. This will benefit all stakeholders in the value chain and create avenues for advanced research and development. An additional package of Rs 750 crore was announced for Rashtriya Gokul Mission which is to be utilised within 2018-19 itself. This package aims to conserve and develop indigenous cattle breeds, which is a step in the right direction since these varieties are more resilient to Indian climate and environmental changes.
This is a huge opportunity as India is well-positioned to grow in all these allied sectors. Today, the nation ranks first in cattle and buffalo population and is the second largest milk producer in the world. At the same time, it has a vast coastline that stretches 7,516 km and is conducive to the fishery business.
It is encouraging to see that the ruling government is planning to combat credit defaults by interest subvention schemes. It was announced that in case of credit in the Kisan Credit Card (KCC) in Fisheries and Animal Husbandry, a 2 per cent interest subvention will be provided. An additional 3 per cent subvention will be given if the credit is paid back in a timely manner. This should have a significant impact on payback of credit on KCC.
Also, those farmers affected by natural calamities and who are provided funds via Natural Disaster Relief Fund (NDRF), will be provided with an interest subvention of 2 per cent, with an additional 3 per cent to be given for the entire loan restructuring period.
Ajay KakraLeader: Food and Agriculture PriceWaterhouseCoopers India