Lok Sabha Question No. 3182 (UNSTARRED), answered on 2017-03-21
Subject: Support to Small Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: NINONG ERING

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

## LOK  SABHA UNSTARRED QUESTION NO.3182

TO BE ANSWERED ON THE  21 ST  MARCH, 2017

## SUPPORT TO SMALL FARMERS

3182.  SHRI NINONG ERING:

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

- (a) whether the Government has taken any measures to support farmers, especially small and landless farmers;
- (b) if so, the details thereof; and
- (c) if not, the reasons therefor?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

- (a) to (c): Agriculture is a State subject and the State Governments take appropriate measures  for  development  of  agriculture  and  farmers  welfare  (including  small  and landless  farmers)  in  the  State.  State  Governments  are  primarily  responsible  for  the growth  and  development  of  agriculture  sector  in  their  respective  States.  The  Union Government is according high priority for its progress and improving the welfare of the farmers.  Government of India has taken several steps to revitalize agriculture sector and  improve  economic  condition  of  farming  community  on  sustainable  basis  by increasing  investment,  improving  farm  practices,  creating  rural  infrastructure  and delivery  of  credit,  technology  and  other  inputs,  such      as,  extension,  marketing,  etc. Keeping in mind the dependence of a large section of India's society on agriculture and also the need for ensuring food and nutrition security, the Government supplements the efforts of States through appropriate policy measures and budgetary support.  To this end,  Government  of  India  has  taken  several  steps,  which,  inter-alia,  include  the following:
- (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  reduce  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) National Agriculture Market scheme (e-NAM).  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  to ensure remunerative prices to farmers for their produce.

(vi) 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  2015-16,  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 and such restructured loans  shall  attract  normal  rate  of  interest  from  the  second  year  onwards  as  per  the policy  laid  down  by  RBI.   The  said  provision  is  continued  in  the  Interest  Subvention Scheme, 2016-17. The benchmark for initiating relief measures by banks has also been reduced to 33% crop loss, in line with the National Disaster Management Framework.

(vii) In  order  to  ensure  that  all  eligible  farmers  are  provided  with  hassle-free  and timely credit for their agricultural operations, the Government has introduced the Kisan Credit Card (KCC) Scheme, which enables them to purchase agricultural inputs such as seeds, fertilizers, pesticides, etc. and draw cash to satisfy their consumption needs.

(viii)    The KCC Scheme has since been simplified by providing the farmers with ATM enabled debit card based on one-time documentation and built-in cost escalation in the limit, etc.

(ix) Further,  under  the  Interest  Subvention  Scheme,  post-harvest  loans  against Negotiable  Warehouse  Receipts  (NWRs)  provided  by  banks  to  Small  Farmers  / Marginal Farmers having Kisan Credit Card (KCC), are also available at  the interest rate of 7%  per annum for a period of upto six months, in order to discourage distress sale of produce by small and marginal farmers.

(x) To  bring  small,  marginal,  tenant  farmers,  oral  lessees,  etc.  into  the  fold  of institutional credit, Joint Liability Groups (JLGs) have been promoted by banks.

(xi) Under Pradhan Mantri Fasal Bima Yojana (PMFBY), which has been introduced from  Kharif  2016,  the  farmers  have  to  pay  only  nominal  premium  of  only  2%  for  all Kharif  crops,  1.5% for  all  Rabi  crops  and  5%  for  annual  commercial  and  horticultural crops and the balance is paid by the Government under PMFBY. This scheme provides insurance  cover at all  stages of the  crop cycle including post-harvest risks, in specified instances.  As  per  the  provisions  contained  in  PMFBY,  the  farmers  availing  Seasonal Agricultural  Operational  (SAO)  loan/  Kisan  Credit  Card  (KCC)  for  notified  crops  in notified areas are being compulsorily covered to the extent of Scale of Finance/ Sum Insured  of  that  crop  and  the  Scheme  is  optional  to  the  farmers.  The  scheme  is  a protection  shield  against  instances  of  farmer  suicides  because  of  crop  failures  or damage due to natural calamities.

(xii) Minimum Support Price (MSP) is notified for both Kharif and Rabi crops based on the  recommendations of the Commission on Agriculture Costs & Prices (CACP). The Commission collects & analyses data on cost of activation and recommends MSP.  The Government has  also  declared  bonus  on  pulses  for  Kharif  2016  over  and  above  the approved MSP.  Even during last year, Government offered bonus over and above the MSP in case of pulses.

Further, 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 MSP 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.

******