Farmers, traders get the high table at PM Modi's first cabinet meeting

The government will extend a programme of handing Rs 6,000 a year to all 14.5 crore farmers in the country, Prime Minister Narendra Modi's cabinet decided on Friday in its first meeting after winning elections.

The government will also launch a Rs 10,000 crore pension scheme for 5 crore farmers, said agriculture Narendra Singh Tomar as he announced measures that the BJP-led National Democratic Alliance (NDA) had promised in its election pitch. 

In the interim budget for the 2019/20 fiscal year presented in February, Modi's last government had started the direct cash support programme for 12 crore poor and small farmers as part of efforts to placate growers struggling with weak crop prices.

The revised PM Kisan scheme envisages to cover 2 crore more farmers with an estimated expenditure of Rs 87,217.50 crore in 2019-20, reported news agency IANS. The previous government had estimated annual expenditure of Rs 75,000 crore in the earlier version of the scheme.

The decision is expected to address the farm sector distress that has gripped the rural economy for some time now. One of the key contributors to the GDP growth, the agriculture and allied activities shrank in the financial year 2018-19.

As per the official data released on Friday, the agriculture sector grew at 2.9 per cent in FY-19 as against the growth rate of 5 per cent in the previous year.

The government also approved a minimum monthly pension of Rs 3,000 to all shopkeepers, retail traders and self-employed persons after attaining the age of 60 years, fulfilling its poll promise.

The decision will benefit 3 crore retail traders and shopkeepers, reported news agency PTI.

Five crore traders are expected to join the scheme in the next three years, Union Minister Prakash Javadekar said.