New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman holds her first Pre-Budget consultation meeting with representatives from agriculture sector.
Nirmala Sitharaman begins her first consultation meet According to the reports, they are likely to seek more funds for Interest Subsidy for Short Term Credit to Farmers and for Market Intervention Schemes (MIS) in the Annual Budget.
Under the MIS, interest subvention is provided to NABARD, regional rural banks, cooperative banks, public sector banks and scheduled private sector banks for providing short term credit to farmers at a subsidised rate of interest.
The Budget allocation for agriculture has risen to 90 per cent in the interim Budget from Rs 67,800 crore in the 2018-19 Budget estimates to Rs 1,29,585 crore.
The Agriculture Ministry will also have the budgetary allocation for animal husbandry, dairying and fisheries.
In the interim Budget, the government had proposed the creation of a separate department for fisheries and a 2% interest subvention on loans to fish farmers to help boost seafood production and exports. Since this sector is an employment-intensive and export-based, the ministry will seek favourable policies towards the sector.
The interim Budget has allocated Rs 18,000 crore for the interest subsidy and Rs 3,000 crore for the Market Intervention Scheme and Price Support Scheme (MIS-PSS).
Nirmala Sitharaman has also called a meeting of leading industry chambers to elicit their views on various issues, including steps to boost FDI inflows and industrial productivity.
Representatives of industry bodies like CII, FICCI and Assocham, among others, are expected to attend the meeting.
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