Lok Sabha Question No. 315 (UNSTARRED), answered on 2019-02-05
Subject: Support for Distressed Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: HARI BABU KAMBHAMPATI

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

## LOK  SABHA UNSTARRED QUESTION NO.315

TO BE ANSWERED ON THE 5 TH   FEBRUARY, 2019

## SUPPORT  FOR DISTRESSED FARMERS

315. DR.  KAMBHAMPATI HARIBABU:

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

- (a) whether  it  is  a  fact  that  the Government is considering income support for  distressed farmers,  if  so,  the  details thereof; and
- (b) whether  the  Government  is considering to extend farm loan waiver to the  distressed farmers,    if    not,    the  alternative  measures  being  considered  to  be  taken  to  overcome  their difficulty?

## 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):     Yes, Madam. The Government with a view to augment the income of Small and Marginal Farmers, in the Union Budget 2019 has announced 'Pradhan Mantri Kisan SAmman Nidhi (PMKiSaN)' a new Central Sector Scheme will be 100% funded by the Government of India.

Under the Scheme, financial benefit of Rs. 6000/- per year will be provided to all Small and  Marginal  Farmer  families  having  cultivable  land  holding  upto  2  hectare.  This  financial benefit  will  be  provided  in  3  equal  installments  of  Rs.  2000/-  each  in  a  period  of  every  four months in a financial year. The benefit shall be admissible under the scheme w.e.f. 01.12.2018. The existing land-ownership system in the States/Union Territories will be used for identifications of beneficiaries.

- (b):        No  proposal  for  farm  loan  waiver  to  the  distressed  farmers  is  under  consideration  of Government  of  India  at  present.  However,  Government  of  India  and  Reserve  Bank  of  India (RBI) have undertaken a number of steps to provide relief and easy & hassle-free loans to debt ridden farmers, which, inter alia , include the following:
-  Reserve Bank of  India  has  issued  master  directions  on  relief  measures  to  be  provided  by lending institutions in areas affected by natural calamities including drought which, inter alia , include identification of beneficiaries, extending fresh loans and restructuring of existing loans relaxed security and margin norms, moratorium, etc. The benchmark for restructuring of loans

has  been  reduced  from  50%  to  33%  crop  loss,  which  is  in  line  with  the  National  Disaster Management Framework. Further, in terms of RBI's Master circular on Asset Classification, banks  are  free  to  restructure  and  extend  the  repayment  period  of  loans/give  stress dispensation scheme to any category of borrowers which have come under stress as per their commercial judgment and Board approved loan policy within the broad prudential guidelines prescribed by RBI. In addition, as per the Priority Sector Lending Guidelines issued by RBI, loans  to  distressed  farmers  to  repay  non-institutional  lenders,  are  eligible  under  priority sector.

-  The  Government  has  introduced  the  Kisan  Credit  Card  (KCC)  Scheme,  which  enables farmers to  purchase agricultural inputs such as seeds, fertilizers,  pesticides,  etc.  and  draw cash to satisfy their agricultural and consumption needs. The KCC Scheme has since been simplified. It has the provision of ATM enabled debit card with, inter alia , facilities of one-time documentation and built-in cost escalation in the limit, etc.
-  RBI vide its notification dated 13 th November, 2014 have instructed the Banks to finance the Joint Liability Groups (JLGs) to bring small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional credit.
-  RBI  has  issued  Priority  Sector  Lending  (PSL)  guidelines,  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 for Small and Marginal Farmers.

In addition to the above, as per PSL guidelines, loans to distressed farmers to repay noninstitutional 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.

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