New Delhi: Finance minister Arun Jaitley in the Union Budget 2017 announced an allocation of Rs 10 lakh crore for agriculture credit. The money would be used to give a boost to the agriculture economy of the country.
He said that the government will focus on increasing the credit flow to under-served areas. He announced computarisation for NABARD and will allocate Rs 9,000 crore for the Fasal Bima Yojana. Likewise, 40% of sown area would be covered under the crop insurance scheme.
The budget also announced an initial corpus of Rs 5,000 crore for micro irrigation schemes. The government will also bring a model law on contract farming which would be circulated among states for adoption. The government will set up a dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore Jaitley said.
Apart from this Finance Minister Arun Jaitley made several announcements on soil health cards and for a modern law on contract farming. He allocated Rs 8000 crore for dairy processing fund, said that from 250 the number of markets on National Agricultural Market would be taken to 500. Jaitley also announced that the government will give the highest ever allocation for NREGA to Rs 48,000 crore.