Lok Sabha Question No. 144 (STARRED), answered on 2018-03-06
Subject: Revitalisation of Agriculture Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SHOBHA KARANDLAJE, PRATHAP SIMHA

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

## LOK  SABHA STARRED QUESTION NO. 144

TO BE ANSWERED ON THE 6 TH  MARCH, 2018

## REVITALISATION OF AGRICULTURE SECTOR

## *144.    KUMARI SHOBHA KARANDLAJE: SHRI PRATHAP SIMHA:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE कृ ष एवं कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether there is a need to formulate long-term and medium-term Action Plans for augmenting/attracting public and private investments to revitalize the agriculture sector and  increase  its  growth  rate,  if  so,  the  details  thereof  and  the  steps  taken  by  the Government in this regard;
- (b) the details of the amount invested/ released and utilised for the purpose and the achievements thereof;
- (c) whether public investment in the agriculture sector is critical and it forms only 15 per cent of the total investment in this sector;
- (d) whether  the  Government  proposes  to  formulate/evolve  policies  to  channelize greater  private  investments  through  Government  schemes  in  farm  inputs,  irrigation, marketing,  post-harvest  management,  land  development  and  capacity  building  of institutions and if so, the measures initiated in this regard; and
- (e) the  other  programmes/schemes  launched  to  help  the  farmers  for  improving productivity and getting better economic returns?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण ½ãâ¨ããè (SHRI RADHA MOHAN SINGH) (a) to (e): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO. 144   DUE FOR REPLY ON 6 TH  MARCH, 2018.

(a) to (d):     Yes, a medium term action plan for the period from 2017-18 to 2019-20  as per existing schemes  is  in place for augmenting/  attracting public and  private investments to revitalize the agriculture sector and increase its growth rate.

Further, as a long term programme, the Central Government is also working to achieve the target of doubling the income of farmers by 2022, which will also contain recommendation for long term action plan for augmenting/attracting public and private investments  to  revitalize  the  agriculture  sector  and  increase  its  growth  rate.  For  this purpose, the Government has constituted an Inter-Ministerial Committee on 13.04.2016 under  the  Chairmanship  of  Chief  Executive  Officer,  National  Rainfed  Area  Authority, Department of Agriculture, Cooperation and Farmers Welfare to examine issues relating to doubling of farmers' income and recommend a strategy to achieve the same by the year  2022.  In  order  to  have  consultation  with  the  stakeholders  across  the  country  in finalizing the strategy, the Committee has been placing its reports in public domain. As of  now,  nine  thematic  Volumes of  the  draft  Report  prepared  by  the  Committee  have been  uploaded  on  the  website  of  this  Department  (http://agricoop.nic.in/doublingfarmers)  for  seeking  public  opinion.    The  recommendations  have  been  taken  into consideration by the Government for inclusion in the work plans.

Further  in  view  of  the  importance  of  agriculture  sector,  the  Government  has substantially  enhanced  the  budget  allocation  for  the  agriculture  sector.  The  details  of Budget  Estimates  and  utilization  from  2014-15  to  2018-19  in  respect  of  all  the  three Departments under the Ministry of Agriculture and Farmers Welfare are as follow:-

(Rs. in crore) ( as on 26.02.2018)

| Year    |   Budget Estimates (BE) | Actual Expenditure   |
|---------|-------------------------|----------------------|
| 2014-15 |                 31543   | 26572.31             |
| 2015-16 |                 25460.5 | 49677.32             |
| 2016-17 |                 45035.2 | 48957.00             |
| 2017-18 |                 51576   | 40216.29             |
| 2018-19 |                 58080   | ----                 |

Corpus Funds for supplementing budgetary resources are as follows :

- (1) Long Term Irrigation Fund (LTIF) has been set up in NABARD with a corpus of Rs. 40,000 crore for funding of 99 priority large & medium irrigation projects.
- (2) Micro Irrigation Fund of Rs. 5,000 crore with NABARD as announced in Union Budget of 2017-18.
- (3) Dairy  Processing  &  Infrastructure  Development  Fund  with  an  outlay  of  Rs. 10,881 crore.
- (4) Fisheries  and  Aquaculture  Development  Fund  of  Rs.  7,550  crore  and  Animal Husbandry Infrastructure Development Fund of Rs. 2,450 crore have been announced in Budget 2018-19.
- (5) Market Infrastructure Development Fund of Rs. 2000 crore has been announced in  Budget 2018-19.

It  may  be  appreciated that, following higher devolution  of finances to the State Governments, the funding pattern is generally in the ratio of 60:40 for most States and 90:10  for  the  North-Eastern  and  Hilly  States.  Hence,  the  total  investments  in  the agriculture sector is much higher.

Public  investment  in  the  agriculture  sector  is  of  great  importance.  As  per estimates provided by National Accounts Division,  Ministry of Statistics and Programme Contd…3/-

Implementation,  details  of  public  and  private  investment  measured  in  terms  of  Gross Capital Formation (GCF) in agriculture & allied sector at current prices during 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 are given below:-

GCF in Agriculture & Allied Sector*                            (Rs. Crore)

| Year    |   Public |   Private |   Total |   %Share of Public Sector in GCF |
|---------|----------|-----------|---------|----------------------------------|
| 2013-14 |    40827 |    290009 |  330836 |                               12 |
| 2014-15 |    47319 |    284545 |  331863 |                               14 |
| 2015-16 |    52267 |    239721 |  291989 |                               18 |
| 2016-17 |    64410 |    279066 |  343476 |                               19 |

There is a gradual increase in public investment in Agriculture and Allied Sector over the years.

As  agriculture  is  a  State  subject,  it  is  also  the  responsibility  of  States  to  take necessary  steps  for  holistic  development  of  agriculture  based  on  local  needs  and priorities. However, Government  of India supplements the efforts of the State Governments through various Schemes/ Programmes and it has taken several steps to channelize  greater  investments  through  various  schemes  in  farm  inputs,  irrigation, marketing, post-harvest management, food processing, capacity building etc. some of the Schemes/programmes are as follow:-

Rashtriya  Krishi  Vikas  Yojna  (RKVY)  scheme,  which  is  a  major  scheme  for incentivizing States to increase Investment in agriculture and allied sectors, has been approved for continuation for three years as Remunerative Approaches for Agriculture & Allied Sector Rejuvenation i.e.  (RKVY-RAFTAAR)    which aims at making farming as a

-4- remunerative  economic  activity.  The  new  Guidelines  provide  for  major  allocation  for creation of production and  post-production  infrastructure,  beside  promoting  agrienterprises and incubation facilities.

A  Model  State/UT  Agricultural  Produce  and  Livestock  Marketing  (Promotion  & Facilitation)  Act,  2017  has  been      shared  with  the  States  for  adoption.    In  the  Model APLM Act, 2017, provisions  includes setting up of private markets, direct marketing, farmer-consumer markets, special commodity markets, declaring warehouses/silos/cold storages  or  such  structures  as  market  sub  yards.  A  new  market  architecture  under which 22,000 rural haats are to be upgraded as centers of aggregation and direct salepurchase of agri-commodities has been announced in the Budget for 2018-19.

National Agriculture Market Scheme (E-NAM) is an innovative market process to revolutionize 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'.

To  promote  the  mechanization  of  small  and  marginal  farm  holdings  and  farm holding in difficult area with low level of mechanization, efforts have also been made to encourage  private  investment  in  establishment  of  farm  machinery  hubs  for  custom hiring services and high-tech hubs through credit linked back ended subsidy.

Assistance  is  provided  for  Integrated  pack  house,  pre-cooling  units,  reefer vehicles,  cold  storages  under  post  harvest  component  of  Mission  for  Integrated Development  of  Horticulture  (MIDH).  The  component  is  demand/entrepreneur  driven through commercial ventures for which Government assistance is credit linked and back ended.

-5-

Under Soil Health Management (SHM) scheme, soil testing labs are established mainly  located  at  district/block  level,  with  the  objective  of  employment  generation  for rural youth and to expedite analysis of soil samples. For setting up of projects, there is a provision of financial assistance up to 75% of total cost of Rs. 5 lakh per project will be provided to village entrepreneurs. Financial assistance will also be provided for sample collection,  testing  and  printing  and  distribution  of  Soil  health  Cards  to  the  village entrepreneurs.

The  Department  is  implementing  the  'Per  Drop  More  Crop'  component  of Pradhan Mantri Krishi Sinchai Yojana (PMKSY). Per Drop More Crop mainly focuses on increasing water use efficiency at farm level through precision/micro irrigation (drip and sprinkler irrigation). The component is demand driven and available for beneficiaries/farmers through assistance as credit linked and back ended subsidy.

Ministry of Food Processing Industries is implementing a scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) with an outlay of Rs. 6000.00 crore for the period of 2016-20 to provide a big boost to the growth of modern food processing industries.

(e): At  present,  the  Government  is  implementing  various  schemes  to  synchronise with higher gains for the farmers. Details are as follows:-

-  For higher production through productivity gains
- o National Food Security Mission (NFSM)- cereals, pulses, oilseeds, nutririch cereals, commercial crops
- o Mission  for  Integrated  Development  of  Horticulture  (MIDH)-  high  growth rate of horticulture crops.

-  For reduction in cost of cultivation
- o Soil  Health  Card  (SHC)  (2  year  cycle)-  ensure  judicious  use  of  fertilizer application and thus save money of farmers.
- o Neem Coated Urea (NCU) (universal)- is being promoted to regulate use of  urea,  enhance  availability  of  nitrogen  to  the  crop  and  reduce  cost  of fertilizer application
- o The  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY)  -  micro  irrigation component (1.2 million ha/yr target)- with the motto of 'Har Khet Ko Paani' for  providing  end-to-end  solutions  in  irrigation  supply  chain,  comprising water sources, distribution network and farm level applications.
- o Paramparagat Krishi Vikas Yojana (PKVY) - 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.
-  To ensure remunerative returns
- o National  Agriculture  Market  Scheme  (E-NAM)  is  an  innovative  market process  to  revolutionize  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'
- o A new model 'The Agricultural Produce and Livestock Marketing (Promotion  &  Facilitation)  Act,  2017'  has  been  released  on  24th  April, 2017  for  its  adoption  by  States/UTs.  This  has  been  derived  after  many deliberations over the earlier model      APMC   Act   2003 and the need for

inclusion  of  progressive  reforms  required  in  the  agriculture  marketing sector.  In the Model APLM Act, 2017, provisions  includes setting up of private markets, direct marketing,  farmer-consumer  markets, special commodity  markets,  declaring  warehouses/silos/cold  storages  or  such structures  as  market  sub  yards.  The  model  Act  is  in  different  stages  of adoption by various states.

- o Warehousing and post-harvest loans at concessional rate of interest so as to  discourage  distress  sale  by  farmers  and  to  encourage  them  to  store their produce in warehouses against negotiable receipts.
- o Minimum Support Price (MSP) is  notified  by  the  Government  for  certain crops.
- o Procurement  of  oilseeds,  pulses  and  cotton  are  undertaken  by  central agencies at MSP under Price Support Scheme (PSS) at the request of the concerned State Government.
- o Market  Intervention  Scheme  (MIS)  for  procurement  of  agriculture  & horticulture products, which are perishable in nature and are not covered under PSS.
-  For risk management and sustainable practices
- o Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  &  Restructured  Weather Based Crop Insurance Scheme (RWCIS) (cover 50% GCA by 2018-19)provides  insurance  cover  at  all  stages  of  the  crop  cycle  including  postharvest  risks  in  specified  instances  and  available  to  the  farmers  at  very low rates of premium.

- o 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
- o Mission  organic  Farming  in  North-East-  MoVCD  (NE)-  Realizing  the potential of organic farming in the North Eastern Region of the country.
- o Allied activities as follows:

'Har Medh  Par  Ped' launched during 2016-17 to encourage tree plantation on farm land ' Har Medh Par Ped', along with crops/ cropping system.  The  scheme  is  being  implemented  in  the  states  those  have notified liberalized transit regulations for transport of timber. Implementation  of  the  scheme  has  been  started  in  8  States  and  during 2016-17 and in 12 more States during 2017-18 after notifying liberalized transit regulations.  Other  States are also being  motivated  to notify liberalized transit regulations. Agroforestry will not only help in increasing soil  organic  carbon  but  also  in  creating  additional  source  of  income  to farmers.

National Bamboo Mission has been announced in the Union Budget 201819  for  value  chain  based  holistic  development  of  this  sector  as  a supplement to farm income.

Bee-Keeping: During the last 3 year (2014-15 and 2016-17) the number of honey  bee  colonies  that  were  20  lacs  in  2014-15  have  increased  to  30 lacs during 2016-17, registering an increase of 10 lacs. Honey production in  2011-14  was  2,18,950  metric  tons  which  has  increased  to  2,63,930 metric tons during 2014-17 i.e an increase of  20.54%.

Dairying: Dairy sector is being promoted through schemes like Rashtriya Gokul  Mission,  National  Bovine  Productivity  Mission  and  various  dairy development related projects are being implemented. Fisheries: Foreseeing high potential in fisheries sector, a Blue Revolution with  multi  dimensional  activities  mainly  focusing  on  fisheries  production,

both inland and marine is being implemented.

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