Lok Sabha Question No. 2120 (UNSTARRED), answered on 2018-07-31
Subject: Benefits of Schemes to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHEEMRAO BASWANTHRAO PATIL

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

## LOK  SABHA UNSTARRED QUESTION NO. 2120

TO BE ANSWERED ON THE 31 ST   JULY, 2018

## BENEFITS OF SCHEMES TO FARMERS

## 2120.  SHRI BHEEMRAO B. PATIL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether the Government's schemes are helping only the rich farmers and the one who really deserve help do not even qualify for loans and if so, the details thereof;
- (b) whether very few farmers get the right price for their produce and the calculation of MSP needs to be done honestly and if so, the details thereof;
- (c) whether farmers who after getting the loans waived once, default the next time, and get debarred from all other Government benefits; and
- (d) if  so,  whether  the  Government is considering to bring out any plans to address these issues and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्रालय में राज्य मंत्री (SHRI GAJENDRA SINGH SHEKHAWAT)

- (a): No, Madam. Government Schemes are intended to help all farmers across the country and roughly 85 per cent of the total operational holdings in the country (about 43 per cent of the gross cropped area) are in the Small and Marginal Farmers (SMFs) category.  As far as the issue of such farmers qualifying for loans is concerned, the Govt. has taken several measures to facilitate their access to institutional credit including inter-alia:-
- i) The Reserve Bank of India (RBI) has issued Priority Sector Lending Guidelines    (PSL), which  mandate  all  Domestic  Scheduled  Commercial  Banks  to  earmark  18%  of  their Adjusted  Net  Bank  Credit  (ANBC)  or  Credit  Equivalent  amount  of  Off-Balance  Sheet Exposure (OBE), whichever is higher, as on the corresponding date of the previous year, for lending to Agriculture and within the 18 percent target for agriculture, a sub-target of 8 percent of ANBC  or  Credit Equivalent  Amount  of Off-Balance Sheet  Exposure, (whichever is higher) has been prescribed for SMFs.
- ii) As per PSL guidelines, loans to distressed farmers to repay non-institutional lenders are eligible under priority sector. Besides loans to stressed persons (other than farmers) not exceeding Rs. 1,00,000/- per borrower to repay their debt to non-institutional lender are also eligible for the purpose of priority sector lending by banks.

- iii)  The  Kisan  Credit  Card  (KCC)  Scheme  enables  eligible  farmers  to  draw  cash  through ATM  enabled  debit  card  to  purchase  agricultural  inputs  such  as  seeds,  fertilisers, pesticides as well as meet other agricultural and consumption needs.
- iv)  To  bring  small,  marginal,  tenant  farmers,  oral  lessees,  etc.  into  the  fold  of  institutional credit,  Joint  Liability  Groups  (JLGs)  have  been  promoted  by  banks.  The  Government also  promotes  formation  of  Farmer  Producer  Organisations  (FPOs)  in  a  big  way  to enable farmers to leverage economies of scale, not only for agricultural inputs but also for enhanced marketing opportunities.
- v)  Vide  RBI's  circular  dated  18 th June,  2010  the  Banks  have  been  advised  to  waive margin/security requirements of agricultural loans upto Rs.1,00,000/-.
- vi)  Further, with respect to lessee cultivators (tenant farmers), since leases are informal and may  not  constitute  appropriate  legal  document  for  purposes  of  loan  from  institutional sources, the NITI AAYOG has formulated Model Agricultural Land Leasing Act, 2016 to provide  a  legal  and  institutional  framework  for  legalisation  of  agricultural  land  leasing. This is with a view to facilitate financial institutions to advance agricultural loans to lessee cultivators.    Following NITI AAYOG's Model Act, Uttrakhand and Uttar Pradesh have legalised land leasing.

(b): The Government of India fixes Minimum Support Price (MSP) 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  cultivation  and  recommends MSP.  While recommending its Price Policy, the CACP considers all costs in a comprehensive manner.  The costs include all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation  of  pump  sets  etc.,  miscellaneous  expenses  and  imputed  value  of  family  labour. Hence  the  costs  considered  are  very  comprehensive  and  based  on  the  methodology recommended by Expert Committees from time-to-time.

In the Union Budget for 2018-19, the Government had announced that MSP for all Kharif crops  not  hitherto  covered  will  be  1.5  times  the  cost  of  production.    This  was  followed  by Government decision of 4 th July, 2018 to increase MSPs for all Kharif crops for 2018-19 season at a level of at least 150 percent of the cost of production.

The MSP declared during 2012-13 to 2018-19 for various crops is Annexed.

(c) & (d): No  Madam.  Further, to inculcate discipline for timely repayment of short term crop  loans    Government  has  also  provided  for  prompt  repayment  incentive  under  Interest Subvention Scheme (ISS).

*************

## ANNEXURE

## Lok Sabha Unstarred Question No. 2120 due for 31.07.2018 regarding 'Benefit of Schemes to Farmers'

(7 years MSP Statement)

| S. No.   | Commodity                         | Variety       | 2012-13   | 2013-14   | 2014-15   | 2015-16   | 2016-17   | 2017-18   | 2018-19   |
|----------|-----------------------------------|---------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
|          | KHARIF CROPS                      |               |           |           |           |           |           |           |           |
| 1        | PADDY                             | Common        | 1250      | 1310      | 1360      | 1410      | 1470      | 1550      | 1750      |
|          |                                   | Grade 'A'     | 1280      | 1345      | 1400      | 1450      | 1510      | 1590      | 1770      |
| 2        | JOWAR                             | Hybrid        | 1500      | 1500      | 1530      | 1570      | 1625      | 1700      | 2430      |
|          |                                   | Maldandi      | 1520      | 1520      | 1550      | 1590      | 1650      | 1725      | 2450      |
| 3        | BAJRA                             |               | 1175      | 1250      | 1250      | 1275      | 1330      | 1425      | 1950      |
| 4        | MAIZE                             |               | 1175      | 1310      | 1310      | 1325      | 1365      | 1425      | 1700      |
| 5        | RAGI                              |               | 1500      | 1500      | 1550      | 1650      | 1725      | 1900      | 2897      |
| 6        | ARHAR(Tur)                        |               | 3850      | 4300      | 4350      | 4625^     | 5050^^    | 5450^     | 5675      |
| 7        | MOONG                             |               | 4400      | 4500      | 4600      | 4850^     | 5225^^    | 5575^     | 6975      |
| 8        | URAD                              |               | 4300      | 4300      | 4350      | 4625^     | 5000^^    | 5400^     | 5600      |
| 9        | COTTON                            | Medium Staple | 3600      | 3700      | 3750      | 3800      | 3860      | 4020      | 5150      |
|          |                                   | Long Staple   | 3900      | 4000      | 4050      | 4100      | 4160      | 4320      | 5450      |
| 10       | GROUNDNUT IN SHELL                |               | 3700      | 4000      | 4000      | 4030      | 4220*     | 4450^     | 4890      |
| 11       | SUNFLOWER SEED                    |               | 3700      | 3700      | 3750      | 3800      | 3950*     | 4100*     | 5388      |
| 12       | SOYABEEN                          | Black         | 2200      | 2500      | 2500      | -         | -         | -         | -         |
|          |                                   | Yellow ##     | 2240      | 2560      | 2560      | 2600      | 2775*     | 3050^     | 3399      |
| 13       | SESAMUM                           |               | 4200      | 4500      | 4600      | 4700      | 5000^     | 5300*     | 6249      |
| 14       | NIGERSEED                         |               | 3500      | 3500      | 3600      | 3650      | 3825*     | 4050*     | 5877      |
|          | RABI CROPS                        |               |           |           |           |           |           |           |           |
| 15       | WHEAT                             |               | 1350      | 1400      | 1450      | 1525      | 1625      | 1735      |           |
| 16       | BARLEY                            |               | 980       | 1100      | 1150      | 1225      | 1325      | 1410      |           |
| 17       | GRAM                              |               | 3000      | 3100      | 3175      | 3500**    | 4000^     | 4400@     |           |
| 18       | MASUR (LENTIL)                    |               | 2900      | 2950      | 3075      | 3400**    | 3950@     | 4250*     |           |
| 19       | RAPESEED/MUSTARD                  |               | 3000      | 3050      | 3100      | 3350      | 3700*     | 4000*     |           |
| 20       | SAFFLOWER                         |               | 2800      | 3000      | 3050      | 3300      | 3700*     | 4100*     |           |
| 21       | TORIA                             |               | 2970      | 3020      | 3020      | 3290      | 3560      | 3900*     |           |
|          | OTHER CROPS                       |               |           |           |           |           |           |           |           |
| 22       | COPRA                             | Milling       | 5100      | 5250      | 5250      | 5550      | 5950      | 6500      | 7511      |
|          | (Calender Year)                   | Ball          | 5350      | 5500      | 5500      | 5830      | 6240      | 6785      | 7750      |
| 23       | DE-HUSKED COCONUT (Calender Year) |               | 1400      | 1425      | 1425      | 1500      | 1600      | 1760      | 2030      |
| 24       | JUTE                              |               | 2200      | 2300      | 2400      | 2700      | 3200      | 3500      | 3700      |
| 25       | SUGARCANE#                        |               | 170       | 210       | 220       | 230       | 230       | 255       | 275       |

- # Fair and remunerative price.

## Single MSP of Soyabean (yellow) is recommended by CACP since 2015-16,  as black variety of soyabean is no longer cultivated in major producing states.  Since 2015-16,MSP of Soyabean yellow is also applicable to black variety

* Including Bonus of Rs. 100 per quintal.
- ** Including Bonus of Rs. 75 per quintal .
- ^ Including Bonus of Rs. 200 per quintal.
- ^^ Including Bonus of Rs. 425 per quintal.
- @ including bonus of Rs. 150 per quintal

## (Rs per quintal)