The additional liquidity infusion in the agricultural sector will strengthen the agriculture and rural economy of India especially when manufacturing and services sectors are severely hit by COVID-19 impact. “Today’s announcements worth Rs 2,30,000 crores dovetail the already strong intervention in agriculture through widespread disbursal of credit to farmers worth Rs 93,300 crores during the months of March and April and working capital for States to procure food grains Rabi season besides including the fisheries and livestock farmers provides the much need fillip for growth in this crucial sector, said Mr Vikram Kirloskar, President, CII.
Focused interventions such as extension of interest subvention by 3 months upto May 31, 2020; sanction of 25 lakh new Kisan Credit Cards towards extending institutional credit have all helped strengthen the farming community and ensure continuity of operations including preparations for the upcoming Kharif crop. “These announcements as part of ‘Aatma Nirbhar Bharat’ will not only further infuse liquidity into the sector but is a major step forward towards building resilience, especially for the small and marginal farmers who have higher vulnerability”, Mr Kirloskar added. NABARD, through rural cooperative banks and RRBs will now extend additional refinance support of Rs 30,000 crore for crop loan requirements of small and marginal farmers. This is indeed a heartening announcement and will help meet the working capital requirements for small and marginal farmers.
CII welcomes the announcement of extending the umbrella of to cover an additional 2.5 crore farmers with a credit flow coverage of Rs 2 lakh crore, is a significant step. “The inclusion of Fishermen & Animal Husbandry farmers under Kisan Credit Cards is a welcome initiative and is in line with CII’s asks for the sector", Mr Kirloskar said. The intervention will go a long way in enhancing coverage of access to institutional credit at concessional interest rates for a larger group of farmers. CII also welcomes the step taken by the Government for addressing the concerns of migrant workers by ensuring the availability of free food grains and affordable housing. Today’s measures for migrant workers will boost confidence and help get them back to work.
The dual approach taken by the Government through additional work days under MGNREGA and affordable accommodation for urban workers addresses the welfare of the workers. Enabling portability for accessing the food on fair prices for the migrant families covered under PDS will benefit around 67 crore beneficiaries and this will facilitate the movement of workers for employment. The coverage to the 8 crores additional migrants for food grains to the non-card holders’ is an inclusive approach. New Delhi 14 May 2020
14 May 2020