Farmers and Agro Processing Units Join Hands to Cut Post-Harvest Losses
The budget which was much anticipated to provide all the facilities asked for by the food processing companies except MSMEs, it has thoroughly succeeded in providing a solution for a long-standing problem in India, post harvest losses. The budget paved way for farmers growing fruits and vegetables to link with agro processing companies for better realisation of food prices and reduction of post-harvest losses. Hence, a model law on contract farming will be prepared and would be circulated among the states in the coming days.
Further, a large number of companies processing milk are set up under the Operation Flood Programme have become obsolete, a Dairy Processing and Infrastructure Development Fund would be set up in NABARD with a corpus of INR 8,000 crore over three years. Initially, the funding would start at a corpus of INR 2,000 crore. The agriculture sector for the first time has received a record breaking funding of 10 lakh crore from the government. The National Institute for Transforming India (NITI) Aayog’s study over farming has provided the government a clearer picture and the government reforms were undertaken. In order to uphold the interests of the farmers, Punjab model of contract farming policy will be launched. According to the new policy, the farmer would now directly grow for the food manufacturer or the company. The central policy in this regard is underway and will be taken up by the states.
The Finance Minister also said that the government has decided to abolish the Foreign Investment Promotion Board (FIPB) in 2017-18. He also said that the roadmap for the same will be announced in the next few months. The minister said that the Foreign Investment Promotion Board (FIPB) has successfully implemented e-filling and online processing of FDI applications and more than 90 percent of the total FDI inflows are new through the automatic route. In the meantime, further liberalisation of FDI policy is under consideration and all the necessary announcements will be made in the coming future added the minister.
By BOA Bureau