Private cos get free hand in foodgrain exports

NEW DELHI: The Union Cabinet on Tuesday cleared a slew of pro-farmer measures including the setting up of a National Commission for Farmers, with its chairman holding Cabinet level rank. It also approved opening of all sectors in foodgrain export to the private sector including procurement from the open market. However, an inter-ministerial panel will monitor the buffer stock levels and direct policy such that food security interests are not harmed.
Apart from rural folk, other large constituencies such as the special category states, street vendors, fishermen also figured among beneficiaries of today’s Cabinet decisions.
A key decision was to enlarge the scope and content of the Accelerated Irrigation Benefit Programme (AIBP) by introducing a grant component and slashing the interest rate drastically from the existing 10.5% to 6.5%.
Nabard will now lend at the new rates to states not only for new irrigation projects as was the case earlier, but also for extension, modernisation and modification of older major and minor irrigation projects.
The grant component of Central assistance will continue to be 30% for general category states, but rise to 90% for special category states. This is expected to increase borrowings by states for irrigation projects drastically apart from increasing the pace of capital formation in agriculture sector.
The Cabinet also gave in principle approval to a scheme (Provision of Urban Services in Rural Areas) that would kickstart economic growth and development in rural areas. This will be funded by the Centre. Every year, 826 clusters will be selected for the next five years. The total cost of the scheme is estimated at Rs 12,390 crore. The scheme will provide road transportation, power and telecom connectivity among other things.
A draft national policy for urban street vendors was also cleared which will function as a guideline for states to implement at the municipal corporation level. The policy intends to give vendors legal status, and demarcate hawking zones in development plans.
The Cabinet also ratified the provisions of the South Asian Free Trade Agreement (Safta) inked earlier this month. The government has also decided to streamline Central schemes for fisheries.
Briefing media after the Cabinet meeting, minister Sushma Swaraj refuted suggestions that the new Farmers’ Commission would in effect be duplicating functions of other existing agencies such as the CACP, which decides on minimum support price for agricultural commodities based on yield etc. The newly formed commission is expected to act ‘holistically’ to resolve farmer problems, she said, pointing to the need to increase area under irrigation, measures to hike the yield per hectare of crops, suggest efficient and timely crop pattern changes in specific regions.
The Commission will have a maximum term of two years to submit its full report on all these terms of reference and has been asked to submit an interim report mid way on selective issues. The two secretaries in the commission will hold secretary level ranks in the government and the selection process has yet to be coined.
Meanwhile, the CCEA, which also met today, approved a proposal to extend existing 273 Krishi Vigyan Kendras (KVKs), 8 zonal co-ordinating units at the total cost of Rs 497.05 crore with 100% funding at the total cost of Rs 304.08 crores. They will be established under ICAR institutes. The CCEA also approved a proposal to provide e-linkage to 200 KVKs at an estimated cost of Rs 38.27 crore and provision of water and soil testing facilities in the existing KVKs at an estimated cost of Rs 38.46 crore.