New Delhi: Prime Minister Narendra Modi’s government is set to present its first budget of the third term, focusing on post-pandemic fiscal consolidation and the long-term objectives of ‘Vikshit Bharat’. Finance Minister Nirmala Sitharaman’s budget is expected to prioritize boosting consumption through tax benefits for the middle class, while also emphasizing agriculture, infrastructure, and manufacturing.
Agricultural Sector Focus
The government has introduced several schemes over the years to support the agricultural sector. Experts predict that the upcoming budget will likely include populist measures to aid farmers. Here are five major ongoing schemes for farmers introduced by the Centre:
•PM Kisan Scheme
Launched on February 24, 2019, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is designed to support the financial needs of land-holding farmers, with some exclusions. The scheme provides an annual benefit of Rs. 6,000, paid in three equal installments directly into farmers’ bank accounts via Direct Benefit Transfer (DBT). To date, over Rs. 2.81 lakh crore has been distributed to more than 11 crore farmers.
•Pradhan Mantri Kisan Maandhan Yojna
Launched on September 12, 2019, the Pradhan Mantri Kisan Maandhan Yojna (PMKMY) aims to provide financial security to vulnerable farming families. This contributory pension scheme requires small and marginal farmers aged 18 to 40 to contribute between Rs. 55 and Rs. 200 per month until they reach 60 years of age. Upon reaching 60, enrolled farmers receive a monthly pension of Rs. 3,000. The scheme is managed by the Life Insurance Corporation (LIC) and has enrolled 23.38 lakh farmers.
•Pradhan Mantri Fasal Bima Yojana
Launched in 2016, the Pradhan Mantri Fasal Bima Yojana (PMFBY) offers affordable crop insurance, providing farmers with protection against all unavoidable natural risks from pre-sowing to post-harvest. The program has covered 55.49 million farmer applications, with claims totaling Rs. 1,50,589.10 crore paid out.
•Agri Infra Fund
Part of the Aatmanirbhar Bharat Package, the Agri Infra Fund aims to address infrastructure deficiencies and attract investment in agricultural infrastructure. The fund provides medium- to long-term debt financing for post-harvest management and community farming projects, supported by interest subsidies and credit guarantees. With a total allocation of Rs. 1 lakh crore, the fund will be distributed between FY 2020-21 and FY 2025-26, with support extending until FY 2032-33.
•Namo Drone Didi Scheme
Recently approved, this scheme provides drones to Women Self Help Groups (SHGs) for the period from 2024-25 to 2025-26, with a total allocation of Rs. 1,261 crore. It aims to equip 15,000 SHGs with drones for rental services to farmers, specifically for applying fertilizers and pesticides. The scheme offers Central Financial Assistance covering 80% of the drone and accessory costs, up to Rs. 8 lakh.
The remaining procurement cost can be financed through loans from the National Agriculture Infra Financing Facility (AIF), with a 3% interest subsidy provided to the Cluster Level Federations (CLFs). This initiative supports sustainable business operations for SHGs, enabling them to earn an additional income of at least Rs. 1 lakh per year.
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