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LATEST NEWS UPDATES | Union Budget 2021: Budget sends mixed signals on farm sector -Priscilla Jebaraj

Union Budget 2021: Budget sends mixed signals on farm sector -Priscilla Jebaraj

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published Published on Feb 1, 2021   modified Modified on Feb 2, 2021

-The Hindu

Farmer advocates not impressed by on-ground impact of budget announcements

The Union Budget sent mixed signals to the tens of thousands of farmers who have been protesting on Delhi’s borders for the last two months, and the wider agricultural community.

On the one hand, the budget allocation for the Department of Agriculture, Cooperation and Farmers Welfare was slashed 8.5% in 2021-22. The flagship PM-KISAN scheme, meant to provide income support to farmers, saw a 13% drop in its budget, which is 10,000 crore lower than last year’s initial allocation.

On the other hand, Finance Minister Nirmala Sitharaman’s speech emphasised the government’s track record in paying minimum support prices (MSP) to farmers and the decision to allow State-run Agricultural Produce Marketing Committees (APMCs) to access the 1 lakh crore Agriculture Infrastructure Fund (AIF).

Protesting farm unions are demanding a repeal of the three agrarian reform laws that they fear will lead to the collapse of the APMCs and weaken the system of government procurement at MSP rates, leaving small farmers at the mercy of corporate players.

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The Hindu, 1 February, 2021, https://www.thehindu.com/business/budget/union-budget-2021-is-nirmala-sending-a-message-to-agitating-farmers/article33719123.ece?homepage=true


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