Budget 2020: FM Sitharaman announces incentives for farmers to build warehouses for storage of produce

Finance minister Nirmala Sitharaman, on February 1, announced incentives to farmers for building warehouses.  The thrust, she said, is to offer viability gap funding, and Mudra loans will also be provided for such self-help groups.

The Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) involves an allocation of Rs 6,000 crore for the period 2016-20 coterminous with the 14th Finance Commission cycle.

The scheme, currently being implemented by the Ministry of Food Processing Industries (MoFPI), is a comprehensive package, aimed at creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.

These plans are aimed at boosting the food processing sector in the country, creating non-farm employment opportunities in rural areas, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods.