FM sets agriculture credit target at Rs 16.5 lakh Cr for FY 2021-22

Finance Minister, Nirmala Sitharaman in her Budget 2021 speech stated that the MSP for paddy has been doubled in FY 2021-22. Around1.54 crore farmers have benefited from MSP in paddy and wheat in FY21 vs 1.24 crore YoY  

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Finance Minister, Nirmala Sitharaman in her Budget 2021 speech has reiterated that the government is committed to the betterment of India's farmers. She stated that the Minimum Support Price (MSP) regime has undergone a change to assure a price that is at least 1.5 times the cost of production across all commodities. 

The Finance Minister also announced an increase in agriculture credit target to Rs 16.5 lakh crore in FY 2021-22. The FM added that the MSP for paddy has been doubled this year. Around 1.54 crore farmers have benefited from MSP in paddy and wheat in FY21 vs 1.24 crore YoY. In the case of wheat, the amount paid to farmers in 2019-2020 was Rs 62,802 crore and in 2020-2021 it was further increased to Rs 75,060 crore. For paddy in FY21 seen at Rs 1.72 crore vs Rs 1.41 lakh crore in FY20. Amount paid to farmers for pulses in FY21 seen at Rs 10,530 crore vs Rs 8,285 crore in FY20. 

Sitharaman said that the amount paid to cotton farmers has gone up to Rs 25,975 crore in 2020-21 as on January 2021 – up from Rs 90 crore in 2013-14.

Strenthening of APMCs

FM has reassured farmers that MSP system will continue and will be further strengthened. Reiterating its commitment to develop APMCs, the government has announced to allow utilisation of Rs one lakh crore infrastructure fund for the infrastructure development of state-controlled mandis. 1,000 more Mandis to be integrated into the E-NAM market place. 

Development of Fishing hubs

 FM announced in the budget that five major fishing hubs, including Chennai, Kochi and Paradip, to be developed .A multipurpose seaweed park will be established in Tamil Nadu.

 

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