Context: Recently, the Union Minister of Finance announced the 3rd Tranche of measures under Aatma Nirbhar Bharat Abhiyaan, to strengthen Infrastructure Logistics, Capacity Building, Governance and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors.
Key Points

• The announced measures also form a part of the Rs 20 lakh crore economic stimulus package to deal with the Covid-19 pandemic.
• Earlier, the Economic Stimulus-I was announced which includes both liquidity financing measures and credit guarantees and Economic Stimulus-II  for migrant labours, street vendors, migrant urban poor, small traders self-employed people, small farmers and housing.
• And this economic stimulus package involves the fulfilment of the long-pending agricultural marketing reforms.

Contract farming

• There are also plans to ensure a facilitative legal framework to oversee contract farming.
• This would provide farmers with assured sale prices and quantities even before the crop is sown and also allow private players to invest in inputs and technology in the agricultural sector.

Agri Infrastructure Fund for farm-gate infrastructure for farmers

• Under this Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups, etc.).
• Impetus for development of farm-gate & aggregation point, affordable and financially viable Post Harvest Management infrastructure. Fund will be created immediately.

Formalisation of Micro Food Enterprises (MFE)

• A Scheme promoting vision of Prime Minister : ‘Vocal for Local with Global outreach’ will be launched to help 2 lakh MFEs who need technical upgradation to attain FSSAI food standards, build brands and marketing. 
• Existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be supported. 
• The focus will be on women and SC/ST owned units and those in Aspirational districts and a Cluster based approach (e.g. Mango in UP, Tomato in Karnataka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed.

Provision for fisherman through Pradhan Mantri Matsya Sampada Yojana (PMMSY)

• The Government will launch the PMMSY for integrated, sustainable, inclusive development of marine and inland fisheries. 
• Under this Rs 11,000 crore for activities in Marine, Inland fisheries and Aquaculture and Rs. 9000 crore for Infrastructure - Fishing Harbours, Cold chain, Markets etc shall be provided. 
• Cage Culture, Seaweed farming, Ornamental Fisheries as well as New Fishing Vessels, Traceability, Laboratory Network etc. will be key activities. 
• The focus will be on Islands, Himalayan States, North-east and Aspirational Districts.

National Animal Disease Control Programme

• National Animal Disease Control Programme for Foot and Mouth Disease (FMD) and Brucellosis launched with total outlay of Rs. 13,343 crore to ensure 100% vaccination of cattle, buffalo, sheep, goat and pig population (
• Out of total 53 crore animals for Foot and Mouth Disease (FMD) and for brucellosis. Till date, 1.5 crore cows & buffaloes tagged and vaccinated.

Animal Husbandry Infrastructure Development Fund

• Under this Rs. 15,000 crore will be set up, with an aim to support private investment in Dairy Processing, value addition and cattle feed infrastructure. Incentives will be given for establishing plants for export of niche products.

Promotion of Herbal Cultivation

• Under this the National Medicinal Plants Board (NMPB) has supported 2.25 lakh hectare area under cultivation of medicinal plants. 
• 10,00,000 hectare will be covered under Herbal cultivation in next two years with outlay of Rs. 4,000 crore. 
• This will lead to Rs. 5,000 crore income generation for farmers. There will be network of regional Mandis for Medicinal Plants. 
• NMPB will bring 800-hectare area by developing a corridor of medicinal plants along the banks of Ganga.

Beekeeping initiatives –
With an outlay of Rs 500 crore, Government will implement a scheme for:

• Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and Storage Centres, Post Harvest & value Addition facilities etc; 
• Implementation of standards & Developing traceability system; 
• Capacity building with thrust on women;and 
• Development of quality nucleus stock and bee breeders.

Extension of Operation Greens

• Operation Greens run by the Ministry of Food Processing Industries will be extended from Tomatoes, Onion and Potatoes (TOP) to all fruit and vegetables, with an outlay of Rs 500 crore.
• It will provide 50% subsidy on transportation from surplus to deficit markets, 50% subsidy on storage, including cold storages and will be launched as pilot for the next 6 months and will be extended and expanded.
• This will lead to better price realisation to farmers, reduced wastages and affordability of products for consumers.

Measures for Governance and Administrative Reforms for Agriculture Sector
Amendments to Essential Commodities Act

• To enable better price realisation for farmers in agriculture food stuffs including cereals, edible oils, oilseeds, pulses, onions and potato shall be deregulated. 
• Stock limit will be imposed under very exceptional circumstances like national calamities, famine with surge in prices. 
• Further, No such stock limit shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand.

Agriculture Marketing Reforms 
A Central law will be formulated to provide -

• adequate choices to the farmer to sell their produce at remunerative price;
• barrier free Inter-State Trade;
• a framework for e-trading of agriculture produce.

Agriculture Produce Pricing and Quality Assurance

• The Government will finalise a facilitative legal framework to enable farmers to engage with processors, aggregators, large retailers, exporters etc. in a fair and transparent manner. 
• Risk mitigation for farmers, assured returns and quality standardisation shall form integral part of the framework.

Significance 

• These reforms will benefit both farmers and consumers. 
• The reforms will empower farmers, strengthen agri-food processing linkages and enable demand-driven value added agriculture.
• The reforms will contribute towards mitigating post-harvest losses and wastage by giving a fillip to scientific storage facilities.
• The reforms will help the small farmers earn additional income by way of value-added agri-produce through food-processing.
• The reforms are significant given that the agricultural sector provides livelihoods to about half of India’s workforce. 
• Though several agricultural economists and farm activists have welcomed the reform and investment announcements, they have also expressed concerns over the lack of immediate support to help farmers survive the current crisis.