Union Budget 2021: FM Sitharaman reveals how MSP regime has assured more price to farmers

February 01, 2021 | Updated 3:50 pm

Union Budget 2021: FM Sitharaman reveals how MSP regime has assured more price to farmers

Union Finance Minister Nirmala Sitharaman, during her Union Budget 2021 speech on Monday (February 1), announced that Minimum Support Price (MSP) regime has undergone a change to make sure that the price to farmers that is at least 1.5 times the cost of production for all commodities.

Sitharaman, while proposing India’s first digital budget, said that “the procurement has also continued to increase at a steady pace”.

“Our government is committed to the welfare of farmers. The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities. The procurement has also continued to increase at a steady pace, this has resulted in an increase in payment of farmers, substantially,” FM Nirmala Sitharaman.

While giving further insight about the increase in payment of farmers, Sitharaman also revealed that when it come to wheat, the amount paid to farmers in 2020-21 was Rs 75,875 crore, when compared to Rs 62,802 crore in 2019-20.

When it comes to paddy, the amount paid was estimated to Rs 1,72,752 crore, when compared to Rs 1,41,930 crore in 2019-20. Meanwhile, in case of pulses, Rs 10,530 crore roughly was paid in 2020-21 to farmers, as compared to Rs 8,285 crore in 2019-20.

She spoke on the topic of how almost thousands of mandis will be integrated with eNAM (National Agricultural Market).

“Around 1.68 crore farmers are registered and Rs 1.14 crore trade value has been carried out through e-NAM, the national agricultural market. Keeping in view the transparency and competitiveness of that eNAM has brought into the agricultural market, thousands more mandi will be integrated with the eNAM,” she said during her speech.

In animal husbandry, the FM announced: “To provide adequate credit to our farmers, I have enhanced the agricultural credit target to 16.5 lakh cr in this year. We will focus on ensuring credit flow to animal husbandry, dairies and to fisheries.”

HERE IS BUDGET ALLOTMENT FOR THE MINISTRY OF AGRICULTURE AND FARMERS’ WELFARE: 

With the aim to development modern fishing harbours and fish landing centres, the Finance Minister also added substantial investments. Five major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip and Petuaghat will be evolved into hubs for economic activities.

Since November 26, 2020, farmers have been protesting at different borders of the national capital against the three newly enacted farm laws: Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; the Farmers Empowerment and Protection) Agreement on Price Assurance and farm Services Act 2020 and the Essential Commodities (Amendment) Act, 2020.