Lok Sabha Question No. 430 (UNSTARRED), answered on 2020-09-15
Subject: Target for Farmers Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dushyant Singh

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

## LOK  SABHA UNSTARRED QUESTION NO.430

TO BE ANSWERED ON THE  15 TH  SEPTEMBER, 2020

## TARGET FOR FARMERS INCOME

430.   SHRI DUSHYANT SINGH:

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

- (a) whether the Government has set a target for farmers' income for 2022;
- (b) if so, the details thereof and the base year set for the farmers' income target;
- (c) the  income/wage  earned  annually  by  farmers  State-wise  from  the  base  year  to  the latest  available  with  annual  percentage  growth  and  annual  percentage  growth  required  to achieve the target set for 2022;
- (d) whether  the  target  set  for  2022  can  be  achieved  at  the  current  annual  percentage growth rate;
- (e) if not, the plans, programmes or roadmap to achieve the target by 2022;
- (f) the  annual  percentage  growth  rate  required  from  2019-20  to  achieve  the  target  by 2022;
- (g) whether  the  Government  has  any  plans  to  achieve  the  required  annual  percentage growth rate; and
- (h) if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी ( SHRI NARENDRA SINGH TOMAR)

(a) & (b): The Government constituted an Inter-ministerial Committee in April, 2016 to examine  issues  relating  to  'Doubling  of  Farmers  Income'  and  recommend  strategies  to achieve  the  same.  The  Committee submitted its  Report  to  the Government  in September, 2018  containing  the  strategy  for  doubling  of  farmers'  income  by  the  year  2022.The  DFI strategy as recommended by the Committee include seven sources of income growth viz., (i) improvement in crop productivity; (ii) improvement in livestock productivity; (iii) resource use efficiency  or  savings  in  the  cost  of  production;  (iv)  increase  in  the  cropping  intensity;  (v) diversification towards high value crops; (vi) improvement in real prices received by farmers; and (vii) shift from farm to non-farm occupations.

The  year 2015-16 is taken as the base year, and targeted year for doubling is 2022. After acceptance of the DFI Committee recommendations, the Government has constituted an 'Empowered Body' to review and monitor the progress.

(c): As of now, there is no latest estimate of annual income of farmers achieved and the percentage annual increase for the states vis-a-vis the base year 2015-16. For the purpose of arriving at the average annual income for the year 2015-16, the DFI Committee extrapolated the NSSO survey based income estimates for the year 2012-13, and estimated that average farmers  income  stands  at  Rs.  96,703/-  per  year  for  the  year  2015-16  at  2015-16  prices. State-wise average income of agricultural households at 2015-16 price is at Annexure-I.

It is the National Statistical Organisation (NSO) which will be conducting the Situation Assessment Survey, and then the income estimates will become available.

The Ministry is implementing various recommendations, and comprehensive interventions  of  the  Government  are  having  positive  impact  on  growth  of  agriculture,  and income of farmers.

(d)  to  (h): The Government has been pursuing the  target  of  doubling farmers'  income  as against the base year 2015-16, as per the annual growth targets.

The Government has adopted several developmental programmes, schemes, reforms and policies, that focus on higher incomes for the farmers. All these policies & programmes are  being supported by higher budgetary allocations,  non-budgetary financial resources by way of creating Corpus Funds, and supplementary income transfers under PM-KISAN. The latest  major  intervention  includes  the  'Atma  Nirbhar  Bharat  -  Agriculture'  which  includes comprehensive market reforms and creation of 'Agricultural Infrastructure Fund (AIF)' worth Rs. 1 lakh crores.

Agriculture being a State subject, the State Governments undertake implementation of  programs/schemes for the development of the sector. Government of India supplements the efforts of the State Governments through various schemes/ programs. These schemes/ programs  of  the  Government  of  India  are  meant  for  the  welfare  of  farmers  by  increasing production, remunerative returns and income support to farmers. A list of initiatives taken by the Government are at Annexure-II .  All  these steps of the Government of India are for the welfare of the farmers of the country.

## Annexure-I

## State-wise average income of agricultural households at 2015-16 prices

| S. No.    | Zone               | State                   | 2015-16   |
|-----------|--------------------|-------------------------|-----------|
| 1         | Northern Zone      | Haryana                 | 1 ,87,225 |
| 2         | Northern Zone      | Punjab                  | 2,30,905  |
| 3         | Northern Zone      | Uttar Pradesh           | 78,973    |
| 4         | North Eastern Zone | Arunachal Pradesh       | 1,76,152  |
| 5         | North Eastern Zone | Assam                   | 85,962    |
| 6         | North Eastern Zone | Manipur                 | 1,22,889  |
| 7         | North Eastern Zone | Meghalaya               | 1,80,384  |
| 8         | North Eastern Zone | Mizoram                 | 1,28,494  |
| 9         | North Eastern Zone | Nagaland                | 1,37,139  |
| 10        | North Eastern Zone | Sikkim                  | 1,20,633  |
| 11        | North Eastern Zone | Tripura                 | 78,962    |
| 12        | Eastern Zone       | Bihar                   | 45,317    |
| 13        | Eastern Zone       | Jharkhand               | 84,820    |
| 14        | Eastern Zone       | Odisha                  | 63,285    |
| 15        | Eastern Zone       | West Bengal             | 78,708    |
| 16        | Central Zone       | Chhattisgarh            | 71,064    |
| 17        | Central Zone       | Madhya Pradesh          | 1,16,878  |
| 18        | Western Zone       | Goa                     | 1,18,410  |
| 19        | Western Zone       | Gujarat                 | 1,18,043  |
| 20        | Western Zone       | Maharashtra             | 1,00,033  |
| 21        | Western Zone       | Rajasthan               | 92,914    |
| 22        | Southern Zone      | Andhra Pradesh          | 1,04,092  |
| 23        | Southern Zone      | Karnataka               | 1,54,399  |
| 24        | Southern Zone      | Kerala                  | 1,55,788  |
| 25        | Southern Zone      | Tamil Nadu              | 1,33,568  |
| 26        | Southern Zone      | Telangana               | 86,291    |
| 27        | Northern Hill Zone | Himachal Pradesh        | 1,14,876  |
| 28        | Northern Hill Zone | Jammu & Kashmir         | 1,72,216  |
| 29        | Northern Hill Zone | Uttarakhand             | 61,833    |
| 30        | Union Territories  | Andaman &Nicobar Island | 1,52,312  |
| 31        | Union Territories  | Chandigarh              | 3,38,362  |
| 32        | Union Territories  | Dadra & Nagar Haveli    | 1,09,002  |
| 33        | Union Territories  | Daman & Diu             | 1,09,067  |
| 34        | Union Territories  | Delhi                   | 2,76,026  |
| 35        | Union Territories  | Lakshadweep             | 2,40,395  |
| 36        |                    | Puducherry              | 1,03,652  |
| All India | All India          | All India               | 96,703    |

## Source: DFI Commit

## List of various interventions and schemes launched for the benefit of farmers.

(i) With a view to provide income support to all farmers' families across the country, to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, the Central Government started a new Central Sector Scheme, namely, the Pradhan Mantri  Kisan  Samman  Nidhi  (PM-KISAN).  The  scheme  aims  to  provide  a  payment  of  Rs. 6000/- per year, in three 4-monthly installments of Rs. 2000/- to the farmers families, subject to certain exclusions relating to higher income groups.

(ii) Further with a view to provide social security net for Small and Marginal Farmers (SMF) as they have minimal or no savings to provide for old age and to support them in the event of consequent  loss  of  livelihood,  the  Government  has  decided  to  implement  another  new Central Sector Scheme i.e. Pradhan Mantri Kisan MaanDhan Yojana (PM-KMY) for providing old age pension to these farmers. Under this Scheme, a minimum fixed pension of Rs. 3000/will  be  provided  to  the  eligible  small  and  marginal  farmers,  subject  to  certain  exclusion clauses, on attaining the age of 60 years.

(iii)  With  a  view  to  provide  better  insurance  coverage  to  crops  for  risk  mitigation,  a  crop insurance scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched from Kharif 2016 season. This scheme provides insurance cover for all stages of the crop cycle including post-harvest risks in specified instances, with low premium contribution by farmers.

(iv) Giving a major boost for the farmer's income, the Government has approved the increase in  the  Minimum Support Price (MSPs) for all Kharif & Rabi crops for 2018-19 season at a level of at least 150 percent of the cost of production.

(v) Implementation of flagship scheme of distribution of Soil Health Cards to farmers so that the use of fertilizers can be rationalized.

(vi) 'Per drop more crop' initiative under which drip/sprinkler irrigation is being encouraged for optimal utilization of water, reducing cost of inputs and increasing productivity.

(vii) 'Paramparagat Krishi Vikas Yojana (PKVY)' for promoting organic farming.

(viii) Launch of e-NAM initiative to provide farmers an electronic transparent and competitive online trading platform.

(ix) Under 'Har Medh Par Ped', agro forestry is being promoted for additional income.  With the amendment of Indian Forest Act, 1927, Bamboo has been removed from the definition of trees.  A  restructured  National  Bamboo  Mission  has  been  launched  in  the  year  2018  to promote bamboo plantation on non forest government as well as private land and emphasis on value addition, product development and  markets.

(x) Giving a major boost to the pro-farmer initiatives, the Government has approved a new Umbrella Scheme 'Pradhan Mantri Annadata  Aay Sanrakshan Abhiyan (PMAASHA)'.  The Scheme  is  aimed  at  ensuring  remunerative  prices  to  the  farmers  for  their  produce  as announced in the Union Budget for 2018. This is an unprecedented step taken by Govt. of India to protect the farmers' income which is expected to go a long way towards the welfare of farmers.

(xi)  Bee  keeping  has  been  promoted  under  Mission  for  Integrated  Development  of Horticulture (MIDH) to increase the productivity of crops through pollination and increase the honey production as an additional source of income of farmers.

(xii) To ensure flow of adequate credit, Government sets annual target for the flow of credit to the  agriculture  sector,  Banks  have  been  consistently  surpassing  the  annual  target.  The agriculture credit flow target has been set at Rs. 13.50 lakh crore for the F.Y.2019-20 and Rs.15.00 lakh crore for F.Y. 2020-21.

(xiii)  Extending the reach of institutional credit to more and more farmers is priority area of the Government and to achieve this goal, the Government provides interest subvention of 2% on  short-term  crop  loans  up  to  Rs.3.00  lakh.  Presently,  loan  is  available  to  farmers  at  an interest rate of 4% per annum on prompt repayment.

(xiv)  Further,  under  Interest  Subvention  Scheme  2018-19,  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 negotiable 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.

(xv)  The  Government has extended the facility of Kisan  Credit Card (KCC) to the  farmers practicing animal husbandry and fisheries related activities.  All processing fee, inspection, ledger folio charges and all other services charges have been waived off for fresh renewal of KCC. Collateral fee loan limit for short term agri-credit has been raised from Rs.1.00 lakh to Rs.1.60 lakh.  KCC will be issued within 14 days from the receipt of completed application.

## (xvi) Several market reforms have been rolled out. These include

- a.  Model APLMC (Promotion & Facilitation) Act, 2017
- b.  Establishment of 22,000 number of Gramin Agriculture Markets (GrAMs) as aggregation platforms
- c. Agri-Export Policy, that targets to double agri-exports by 2022
- d.  The  Farmers  Produce  Trade  and  Commerce  (Promotion  &  Facilitation)  Ordinance, 2020
- e.  The Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
- f. Amendments  to  Essential  Commodities  Act,  1955,  that  deregulates  various  agricommodities
- g.  Promotion of 10,000 FPOs by 2024

## (xvii) Creation of Corpus Funds

- a.  Micro Irrigation Fund - Rs. 5,000 crores
- b.  Agri-marketing Fund to strengthen eNAM and GrAMs - Rs. 2,000 crores
- c. Agricultural  Infrastructure  Fund  (AIF)  to  build  agri-logistics  (backward  &  forward linkages) - Rs. 1 lakh crores