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Updated: May 19, 2020 19:41 IST

At first meet, PM Modi’s Cabinet clears 3 poll promises to farmers, traders

At its first meeting chaired by Prime Minister Narendra Modi, the Union Cabinet on Friday decided to extend the Rs 6,000 per year assistance to all farmers, farm minister Narendra Singh Tomar announced after the meeting. The cabinet also agreed to roll out pension plans for farmers and traders.

The three decisions, said Information and Broadcasting Minister Prakash Javdekar, demonstrates that the Modi government had started delivering on its promises from day one.

“It has not even been 24 hours and the first meeting has happened and decisions taken,” Javdekar said. Tomar added that the decision to lift the cap on farmers with larger than 2 hectare plots of land demonstrates the commitment of the Modi government to farmers, he said.

PM Modi’s last government had started the direct cash support programme as part of efforts to placate growers struggling with weak crop prices. Nearly 12.5 crore small and marginal farmers holding land up to 2 hectares were entitled to receive Rs 6,000 in three equal installments. Friday’s decision will imply that the potential list of beneficiaries will go up by 2 crore, to 14.5 crores.

Tomar told reporters that the extension of the Rs 75,000 crore scheme would benefit an additional 2 crore farmers. It will cost the exchequer an additional Rs 12,000 crore.

In 2 more schemes that would also boost rural consumption, the minister said the Cabinet had cleared plans to start contributory pension schemes to cover small and marginal farmers as well as traders above the age of 60.

Five crore traders are expected to join the scheme in the next three years, Union Minister Prakash Javadekar. “All shopkeepers and self employed persons as well as retail traders with GST turnover below Rs 1.5 crore and aged between 18-40 years can enrol for the scheme,” an official statement said.

Tomar expressed optimism that states that had not provided a list of eligible beneficiaries under the Rs 6,000 cash handout scheme would send the names to the Centre.