NEW DELHI: Farm markets need to be liberalised and the government is proposing to hand-hold farmers, Finance Minister Nirmala Sitharaman said on Saturday.

Presenting the Budget for 2020-21, Sitharaman said the government is proposing a 16-point action plan to boost agriculture and farmers' welfare.

Sitharaman said agricultural services need copious investments, and added that the government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna.

"Everything that we do, speak through budget, everything that the government does is for the country," she said.

The government has pegged the agricultural credit target at Rs 15 lakh crore for fiscal 2020-21, Finance Minister Nirmala Sitharaman said on Saturday.

In her second Budget presentation, the Finance Minister also said Nabard refinance scheme will be expanded.

The government will also promote one horticulture crop in one district on cluster basis, she said, adding that horticulture with 311 MT exceeded production of food grains.

She said the government will take steps for conservation of marine fishery, and self help groups will be allowed to set up village agri-storage facilities.

16-point formula

Laying down the 16-Action Point formula for the agriculture sector, Sitharaman said the Centre will encourage states to take up modern agriculture laws including the Land Leasing Act 2016. She also proposed comprehensive measures for 100 water-stressed districts.

Lack of efficient market connectivity has been the bane for farmers growing produce in their fields. "Farm markets need to be liberalised. Farming needs to be made more competitive. Handholding of farm-based activities needs to be provided. Sustainable cropping patterns and more technology are needed in agriculture."

The Union Budget 2020 focused on enabling farmers addressing their challenges of farming. "The government will help 20 lakh farmers for setting up standalone solar pumps and another 15 lakh farmers to set up solar irrigation facilities. Farmers with silos and barren land will be helped to set up solar power units which can be sold through the grid," she said.

This will be done under PM Kusum Scheme, which is already under execution. The scheme will be expanded to enable farmers to set solar power generation and to sell to the power grids.

Farmer's barren land would be used for setting up solar power plants. Now, the farmers can generate solar power and sell it to grids. Sitharaman expressed hopes that these initiatives are being taken with the intent to double farmers' income by 2022.

This also means that the government is looking for ways other than agriculture to increase income of farmers - politically, to double the income of farmers by 2022, a target set by Prime Minister Narendra Modi in his public speeches.

Sitharaman said the government will continue to support the idea of zero-budget farming, proposed in previous budget.

To connect farm with markets, Sitharaman said railways will introduce a Kisan Express and Ministry of Civil Aviation will launch Krishi Udaan to help farmers transport perishable goods quickly.

The Kisan Rail will be set up through PPP (public-private partnership) arrangement to transport perishable goods across the country at a faster pace. She said the railways will build cold supply chain for milk, meat and fish by setting up train services for the purpose.

As Sitharaman announced her 16-point formula to revive agriculture, the agri stocks shot in all in green on stock exchanges.