Farm sector performed 'extraordinarily well' during lockdown; Rs 65,000-crore fertiliser subsidy to support farmers: FM

The Centre has announced an additional outlay of Rs 65,000 crore as fertiliser subsidy so that farmers do not have to worry about any shortage after performing exceedingly well as a sector, Finance Minister Nirmala Sitharaman said while announcing the third round of economic stimulus.

The budgeted fertiliser subsidy for FY 2020-21 was Rs 71,000 crore. The additional amount takes total outlay to Rs 1.36 lakh crore for this year.

"Rs 65,000 crore being provided to ensure adequate availability of fertilisers to farmers to enable timely availability of fertilisers in the upcoming crop season," finance minister Nirmala Sitharaman said at a press briefing.

"Fertiliser consumption which was 499 lakh metric tonne in 2016-17 is expected to increase to 673 lakh metric tonne in 2020-21," the minister said.

There is an estimated increase in fertiliser usage of 17.8 percent over the actual usage in 2019-20 of 571 lakh metric tonnes. The increase is on account of favourable monsoons and the resultant increase in sown area, according to the minister.

The government announced 12 measures under Atmanirbhar Bharat 3.0. The Centre and Reserve Bank of India (RBI) have together provided a total fiscal stimulus of Rs 29.87 lakh crore since the COVID-19 pandemic began. This amount is 15 percent of India's gross domestic product (GDP), Sitharaman said.

As part of the third stimulus, the government announced the Atmanirbhar Bharat Rozgar Yojana to incentivise the creation of new employment opportunities during the COVID-19 recovery phase.

"The new scheme will be in addition to Prime Minister Rozgar Protsahan Yojana," the minister said.

The beneficiaries under the scheme would include any new employee joining employment in Employees' Provident Fund Organisation (EPFO)-registered establishments on monthly wages less than Rs 15000, EPF members drawing monthly wage of less than Rs 15,000 who made exit from employment during COVID pandemic from March to October and is employed on or after October.

The government also announced an additional outlay of Rs 18,000 crore for Pradhan Mantri Awas Yojana (Urban). The amount will be provided over and above Rs 8,000 crore estimated in the Budget 2020-21.

The government also announced that the Emergency Credit Line Guarantee Scheme (ECLGS 1.0) was being extended till March 21, 2021. The finance minister also announced the launch of ECLGS 2.0 which would provide guaranteed credit for supporting stressed sectors.

"Guaranteed collateral-free additional credit at capped interest rates to be provided to entities in 26 stressed sectors identified by Kamath Committee," Sitharaman said. Healthcare sector with credit outstanding of above Rs 50 crore and up to Rs 500 crore as on February 29, 2020, would also be included.

The government also announced an additional outlay of Rs 10,000 crore for PM Garib Kalyan Rozgar Yojana in the current financial year, which is expected to accelerate growth of the rural economy.