Agriculture: Savior of Economy (Yojana November 2020) (Download PDF)

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Agriculture: Savior of Economy

  • To have a robust infrastructure in place to support farm and farm processing-based activities.
  • Govt. launched and implemented farmer-friendly schemes, reforms, and financial incentives.
  • To bring the advantages of the reforms to the doorstep of farmers for their welfare and prosperity.
  • In the first quarter of FY 2020 - 21 among peer nations, India suffered the most with a significant shrink of 23.9 % in GDP due to Covid-19 pandemic.
  • Efforts paid the dividends, a sharp increase of 5.7 percent in area coverage of kharif crops as registered on September 18,2020 (1054-lakh hectare in 2019 - 20 to 1114 lakh hectare in 2020 - 21) .
  • Govt. of India set a record food-grains production target of 301 million tonnes for 2020 - 21.
  • The reforms free up farmers to sell their produce as they wish while those involved in the supply chain can invest in storage without fear of being labelled “hoarders.”
  • This will allow the farm sector and farm-related activities to changes in demographics, climate change, consumer taste and so on.
  • With world՚s second largest stock of cultivable land, India should be an export powerhouse in agriculture.

Care and Credits

  • Finance Minister announced a 1.63 lakh crore-stimulus package for farm sector that aimed at strengthening infrastructure, logistics, and capacity building.
  • Govt. released ₹ 2,000 to bank accounts of famers under PM-KISAN scheme.
  • Wage rate for workers engaged under National Rural Employment Guarantee Scheme (NREGS) was revised with enhanced allocation for the scheme.
  • Pradhan Mantri Garib Kalyan Yojana was launched to take care of vulnerable population during distress period.
  • Cash and food assistance to persons engaged in informal sector, mostly migrant laborer՚s were also arranged out of PM-CARES fund.
  • NABARD is extending an additional refinance support of ₹ 30,000 crore for crop loan requirements Regional Rural Banks and Regional Co-operative Banks over and above the normal refinance of ₹ 90,000 crore to be provided by NABARD during FY 2020 - 21.
  • Nearly 25 lakh new Kisan Credit Cards were sanctioned with a loan limit of ₹ 25,000 to gain access to institutional credit at a concessional rate of interest.
  • From a credit flow of nearly ₹ 2.0 lakh crore 2.5 crore farmers are likely to be covered.

Garib Kalyan Rozgar Abhiyaan

  • To address the issue of livelihood of migrant workers in their home states.
  • A special employment scheme with an outlay of ₹ 50,000 crore.
  • Scheme was implemented on a mission mode in 116 districts of six most affected states, viz. , Bihar, MP, UP, Rajasthan, Jharkhand, and Odisha.
  • Workers were engaged in 25 public infrastructure works ranging from rural housing to rural mendis, rural roads, and community toilets.

Historic Agricultural Reforms

The Famers՚ Produce Trade and Commerce (Promotion & Facilitation) Bill, 2020

Promotes efficient, transparent, and barrier-free trade and commerce by providing farmers the freedom of choice relating to sale & purchase.

The Farmers (Empowerment & Protection) Agreement on Prices Assurance and Farm Services Bill, 2020

Provides a national remunerative price framework that protects farmers to engage with agri-business firms, processors, wholesalers, exporters.

The Essential Commodities (Amendment) Bill, 2020

To boost immediate investment, increase competition and enhance farmers՚ income.

The Farming Produce Trade and Commerce (Promotion & Facilitation) Bill, 2020

  • Historic step to unlock the vastly regulated agricultural markets in the country and create One India, One Agriculture Market.
  • Promote barrier-free interstate & intrastate trade and commerce outside State APMC premises.
  • Will open more choices for farmers, reduce marketing costs, & help them in getting better prices.
  • Electronic trading platform for ensuring a seamless trade electronically proposed.


  • Ministry of Agriculture and Farmers Welfare.
  • Kisan Rails are multi-commodities, multi-consignors, and multi-consignees՚ trains with en-route stoppages to facilitate loading/unloading at stations.
  • The train provides fast transport connectivity between Anantapur to New Delhi with the distance of 2150 km being covered in approximately 40 hours.
  • Anantapur is fastly becoming the Fruit Bowl of Andhra Pradesh. More than 80 % of the 58 lakh MT of fruits & vegetables in the district is marketed out of the state, particularly to the North Indian Sates of Delhi, UP, Punjab and Haryana among others. Earlier this was being transported by roadways.

Other Initiatives

  • Government has launched a ‘PM Shramik Setu Portal’ and ‘PM Shramik Setu App’ that helps connect job seekers with prospective employers as per their skills.
  • Jobs are provided in center or state-run schemes mostly pertaining to rural development and ancillary works.
  • Workers can apply online to avail benefits and job offers.
  • The watershed management for agriculture and famers welfare arrived on June 5,2020 when Government of India promulgated three ordinances that have now become legislations after due parliamentary process.

The Agriculture Infrastructure Fund

  • One lakh crore fund.
  • Will enable farmers to make modern facilities storage in their villages.
  • This modern infrastructure will go a long way in setting up agro-based industries.
  • Under the scheme, the banks and financial institutions will provide loans to Farmer Producer Organizations (FPOs) , SHGs, Farmers Credit and Co-operative Societies and to individual farmers, agri-entrepreneurs, and start-ups as well.

- Published/Last Modified on: March 24, 2021

Economy, Agriculture/Agro Industries, Govt. Schemes/Projects, Yojana

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