Budget 2019 Highlights for Farmers and Agriculture Sector

Budget 2019 Highlights for Farmers and Agriculture Sector

12:32 PM

Budget 2019 Agriculture

As was expected, Narendra Modi Government has brought in a budget boost for the farmers in the Interim Budget 2019. In his speech today, Finance Minister, Piyush Goyal has said that a need of structured income support is in place for poor farmers.

Therefore, a scheme has been announced namely PM Kisan Samman Nidhi, the package which is costing the government 75,000 crore and covering 12.5 crore farmers. Under this scheme, farmers who own land up to two hectares will get Rs 6,000 every year. Farmers will receive money in their accounts directly, in three tranches.

Modi Government has increased the Minimum Support Price (MSP) so as to fulfill the aim of doubling farm income. A fund of Rs. 60,000 crore is also being allocated to the Mahatma Gandhi National Rural Employment Gurantee Act (MNREGA), more funds will be given if needed.

Also, instead of rescheduling crop loans, farmers who are severely affected by natural calamities will not only get 2% interest subvention but also an additional 3% interest subvention upon timely repayment. Rashtriya Kamdhenu Aayog is also to be set up. Along with this, a 2 percent interest subvention has been announced for farmers pursuing animal husbandry and fisheries. A new department for fisheries will also be set up.

As per a report by Bloomberg, India’s agriculture budget has doubled in the past five years to a whopping Rs 57,600 crore in 2018-19 under Modi government, which happens to be thrice of the UPA government budget in 2013-14. The highest increase has been of 79 percent in 2016-17.

Image Credit:Financial Express