Finance Minister Nirmala Sitharaman while presenting the Union Budget 2020-21 has announced to start Krishi Udan Yojana. This Krishi Udaan Scheme will assist farmers in transportation of their agricultural products. The main objective is to give farmers wings by improving their value realization. The central govt. has also announced to launch PM Modi One District One Product Scheme 2020. Central government is focusing on modernization of agriculture and farm produce and to realist the vision of Doubling Farmers Income By 2022.
The Krishi Udan Yojana is a part of the 16 point action plan for farmers. Ministry of Civil Aviation will launch this Krishi Udaan Scheme on international and national routes. This scheme is a part of the Udey Desh Ka Aam Nagrik (UDAN) Yojana which was launched in FY 2016 as regional connectivity scheme. One District One Product Scheme will follow the similar lines of ODOP Scheme in UP.
The Krishi Udan Scheme and PM Modi ODOP Scheme will immensely improve the value realisation on agricultural products especially in north east and tribal districts.
Krishi Udan Yojana by Aviation Ministry
Just like the Udan scheme was launched in 2016 for regional connectivity between states for common man. The central govt. is now going to start Krishi Udan Yojana for farmers. Under UDAN Scheme, financial incentives in terms of concessions from the centre, state governments and airport operators are extended to selected airlines. This is done to encourage operations from unserved and undeserved airports and keep airfares affordable. Similar to this, Krishi Udan Scheme will attract incentives to airlines from govt. and airport operators for transport of agricultural products to different parts of the country.
How Krishi Udaan Scheme of Central Govt. Will Work?
At-least half of the seats in Udan flights are offered at subsidized fares and participating carriers are provided a certain amount of viability gap funding (VGF). The VGF amount is shared b/w the central government and the concerned state governments. Krishi Udan Yojana is a path breaking step as subsidized fares would be provide for farmers and delivery of their agricultural products. This subsidy will remain applicable on national and international routes.
PM Modi One District One Product Scheme 2020
Indian railways would set up Kisan Rail through Public Private Partnership (PPP) model. This will ensure that perishable goods are transported quickly to build a seamless national cold supply chain. FM also said that govt. is giving high focus at district level for horticulture to gain momentum. To ensure better marketing and export, all the supporting states will focus on one product for one district.
How One District one Product Scheme of Central Govt. Will Work?
This One District One Product Scheme will ensure that high focus is given at district level for horticulture to gain momentum. Previously in Udan 4.0, the VGF has been raised for aircraft having more than 20 seats and that would operate in priority areas – Ladakh, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, northeastern states, Andaman and Nicobar Islands and Lakshadweep.