New Delhi: The Union Finance Minister Nirmala Sitaraman unveiled a third tranche of economic package of Rs. 1 Lakh Cr fund to build agri, Infrastructure to raise productivity and make the sector globally competitive. The center on Friday unleashed three crucial, long pending reforms to reshape the architecture of farmer –market ties, allowing them to sell their products without any restrictions.

The far reaching policy reforms were part of an 11. Action plan to revive the sector and ensure better returns for farmers, she said. The government will amend the essential commodities act 1955 make a central law on agriculture marketing and create a legal frame work to provide price assurance to farmers and help improve the quality of their produce. She also said the agri-infrastructure fund Rs. 1 lakh cr will be created immediately, adding that the money would be spent on creating infrastructure projects at farm gate and aggregation points (PACS, Farmer producer organization, agriculture entrepreneur and startups).

The need to improve the connection between farm gate and retail has been on the table for a long time but action has been tardy, she said. The farmers should be able to directly sell farms produce to any private entity or food processing company from farm gates and registered warehouses without the licensing mechanism of registered mandis. Currently run under the agricultural produce marketing committee act, said Sitaraman.

Finance minister also announced Rs. 20,000 cr for fisher man, Rs. 15,000 cr for animal husbandry infra development fund, Rs. 10,000 cr fund to health micro food unit build brands and go global.