Lok Sabha Question No. 364 (UNSTARRED), answered on 2017-07-18
Subject: Reduction in Agricultural Cost
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: UDAY PRATAP SINGH

O.I.H

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.364

TO BE ANSWERED ON THE 18 TH  JULY, 2017

## REDUCTION IN AGRICULTURAL COST

364. SHRI UDAY PRATAP SINGH:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the details of the projects started by the Government to make better prices available to farmers for their produce and to double their income during the last two years and the current year, State/Union Territory-wise;
- (b) whether  the  Government  has  constituted/proposes  to  constitute  any  Committee  to suggest measures to reduce agricultural cost and determine appropriate price from time to time; and
- (c) if so, the details thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM RUPALA)

- (a): During the  last  two  years  and  the  current  year, the  strategy of the  Government is to focus  on  farmers'  welfare  by  making  farming  viable.    Farm  viability  is  possible,  when  cost  of cultivation is reduced, yields per unit of farm are increased and farmers get remunerative prices on their  produce.    The  Department  has  been  implementing  various  schemes  through States/UTs to meet this objective, viz.
- (i) Soil  Health  Card  (SHC)  scheme  by  which  the  farmers  can  know  the  major  and  minor nutrients available in their soils which will ensure judicious use of fertiliser application and thus save money of farmers. The balanced use of fertiliser will also enhance productivity and ensure higher returns to the farmers.
- (ii) Neem Coated Urea is being promoted to regulate urea use, enhance its availability to the crop and reduces cost of fertilizer application. The entire quantity of domestically manufactured and imported urea is now neem coated .
- (iii) Paramparagat Krishi Vikas Yojana (PKVY) is being implemented with a view to promote organic farming in  the  country.    This  will  improve  soil  health  and  organic  matter  content  and increase net income of the farmer so as to realise premium prices.

(iv) The  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY)  is  being  implemented  to  expand cultivated  area  with  assured  irrigation,  reduce  wastage  of  water  and  improve  water  use efficiency.

- (v) The  National  Agriculture  Market  Scheme  (e-NAM)  was  launched  on  14.04.2016  in  8 States viz. Gujarat, Telangana, Rajasthan, Madhya Pradesh, Uttar Pradesh, Haryana, Himachal Pradesh and Jharkhand covering 21 markets.  The Scheme envisages initiation of e-marketing platform at national level and will support creation of infrastructure to enable e-marketing in 585 regulated  markets  across  the  country  by  March  2018.  This  innovative  market  process  is revolutionizing  agri  markets  by  ensuring  better  price  discovery,  bringing  in  transparency  and competition to enable farmers to get improved remuneration for their produce, moving towards 'One Nation One Market'.
- (vi) Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  is  being  implemented  from  Kharif  2016 season. PMFBY has addressed all the shortcomings in the earlier schemes and is available to the farmers at very low rates of premium. This scheme would provide insurance cover for all stages of the crop cycle including post-harvest risks in specified instances.
- (vii)    The  Government  provides  interest  subvention  of  3%  on  short-term  crop  loans  up  to Rs.3.00 lakh.  Presently, loan is available to farmers at an interest rate of 7% per annum, which gets reduced to 4% on prompt repayment.  Further, under Interest Subvention Scheme 201617,  in  order  to  provide  relief  to  the  farmers  on  occurrence  of  natural  calamities,  the  interest subvention of 2% shall continue to be available to banks for the first year on the restructured amount. In order to discourage distress sale by farmers and to encourage them to store their produce in warehouses against warehouse receipts, the benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for a further period of upto six months post harvest on the same rate as available to crop loan.

(viii)   In addition, the Government is implementing several Centrally Sponsored Schemes viz. National  Food  Security  Mission  (NFSM);  Mission  for  Integrated  Development  of  Horticulture (MIDH); National Mission on  Oilseeds & Oilpalm (NMOOP); National Mission for Sustainable Agriculture  (NMSA);  National  Mission  on  Agricultural  Extension  &  Technology  (NMAET)  and Rashtriya Krishi Vikas Yojana (RKVY).

(ix) The Government  undertakes procurement of wheat and paddy under its  'MSP operations'.  In  addition,  Government  implements  Market  Intervention  Scheme  (MIS)  for procurement of agricultural and horticultural commodities not covered under the Minimum Price Support Scheme on the request of State/UT Government. The MIS is implemented in order to protect the growers of these commodities from making distress sale in the event of bumper crop when the prices tend to fall below the economic level/cost of production.

Further, the Government is targeting to double the income of farmers by the year 2022. To achieve the target, the  Department of Agriculture,  Cooperation and Farmers' Welfare has constituted  an  Inter-Ministerial  Committee  to  examine  various  dimensions  of  farmers  income and to recommend an appropriate strategy for increasing it.

(b) & (c): MSP is notified for both Kharif & Rabi crops based on the recommendations of the Commission on Agriculture Costs & Prices (CACP). The Commission collects & analyses data  on  cost  of  cultivation  and  recommends  MSP.    To  incentivise  cultivation  of  pulses  and oilseeds in the country, Government has announced bonus for Kharif 2017-18, over & above the approved MSP.  Even during last year, Government had offered bonus over & above the MSP, in the case of pulses and oilseeds.

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