Union Budget 2021 has been announced amidst ongoing farmers protest around Delhi-NCR. Farmers on the path would mean that agri reforms have again occupied centre stage not just in the minds of the political leaders but also policymakers.
On February 1, Budget Day, the Union Finance Minister has again set a new agricultural credit target for 2021-22 i.e. Rs 16.5 lakh crore this year and also proposed increasing allocation to rural infra development fund to 40,000 crore from 30,000 crore.
Agricultural credit becomes a strong force to enhance the production level, productivity and income of farmers which will play an important role to alleviate the rural poverty. Keeping this in mind our Finance Minister announced to provide an assured price to farmers that is atleast 1.5 times of the production cost across all commodities.
Apart from this, Finance Minister has also allocated a major portion of agricultural credit to APMC for strengthening the agri-rural infrastructure in India. She further emphasized that this agri-cedit of Rs 40000 crore will be utilized for the development of APMC and for the integration of 1000 more mandis to e-NAM.
Government has also increased the procurement of farm produce resulting in enhancement of farmer’s income. She also added total payment paid to farmers in case of wheat, in 2020-21 was Rs 75,060 crores.
