It also amended the stringent Essential Commodities Act to remove cereals, edible oil, oilseeds, pulses, onions and potato from its purview.
The package would focus on infrastructure and building capacities in the agriculture and allied activities.
The interest subvention will unlock ₹5,000 crore additional liquidity, benefitting 2 crore farmers.
This also included ₹7 lakh crore package comprising free food grain and cash to poor for three months announced in March, and ₹5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).
Of the remaining, the government has made two tranches of announcements with a cumulative package of ₹1 lakh crore, comprising largely of credit lines to smaller firms, concessional credit to farmers and support to shadow banking and electricity distributors.
Regulating Essential Commodities:
The government will amend the six-and-a-half-decade old Essential Commodities Act to deregulate food items, including cereals, edible oil, oilseeds, pulses, onion and potato.
The amendment, besides deregulating production and sale of food products, will provide for no stock limit to be imposed on any produce.
A stock limit will be imposed only under very exceptional circumstances like national calamities, famine with a surge in prices.
Also, no stock limit shall apply to processors or value chain participants.
Other Important Announcements:
₹15,000 crore Animal Husbandry Infrastructure Development Fund will be set up to support investment in dairy processing, value addition and cattle feed infrastructure.
To ensure 100 per cent vaccination of all livestock against foot and mouth disease (FMD) ₹13,343 crore will be provided, she said.
As much as ₹10,000 crore will be provided for fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY).
For promoting herbal cultivation, ₹4,000 crore National Medicinal Plants Fund will be started to help 10 lakh hectares to be covered under herbal cultivation.
Also, Operation Greens will be extended from tomato, onion and potato to all fruit and vegetables by providing 50 per cent subsidy on transportation and storage of these commodities.
For beekeepers, a ₹500-crore scheme was announced for infrastructure development and post-harvest facilities.