Government Proposes ₹50,000 Crore Plan to Encourage State Agricultural Reforms

Almost three years after the government repealed its three farm laws in November 2021, the Centre is now considering a new ₹50,000 crore scheme to encourage states to adopt agricultural reforms, according to The Indian Express.

This proposed scheme, once approved, will provide central funding to states to help them implement reforms in areas like agricultural marketing, contract farming, and land leasing.

The idea for this scheme was presented by NITI Aayog officials in a PowerPoint presentation to the Prime Minister’s Office shortly after the Lok Sabha election results, which gave the NDA a third consecutive term. The presentation, titled “India’s Amrit Kaal: Mobilising the Nation to Sustain Fast Growth,” covered all sectors of the economy.

The scheme is one of several ideas being discussed by officials at the Ministry of Agriculture and Farmers’ Welfare and NITI Aayog. These discussions are part of their efforts to identify important farm sector reforms during India’s ‘Amrit Kaal,’ a 25-year period from 2022 to 2047. Other ideas include passing the long-pending Seed Bill and increasing public investment in agriculture to 5% of Agriculture GVA (Gross Value Added).