Lok Sabha Question No. 325 (UNSTARRED), answered on 2019-11-19
Subject: Compensation for Natural Calamities
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Achyutananda Samanta

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

## LOK  SABHA

UNSTARRED QUESTION NO. 325 TO BE ANSWERED ON THE 19 TH   NOVEMBER, 2019

## COMPENSATION FOR NATURAL CALAMITIES

## 325.   SHRI ACHYUTANANDA SAMANTA:

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

- (a) whether the Government proposes any action plan to compensate farmers who have lost all or part of their harvest, capital and machinery due to natural calamities, if so, the details thereof;
- (b) the details of any such action taken by the Government to ensure the supply of seeds, soft loans, etc. in different States, keeping in mind the specific needs in each State; and
- (c) whether the Government proposes to introduce subsidy for fertilizers, 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): Government  has  introduced  yield  based  Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY) and weather index based Restructured Weather Based Crop Insurance Scheme (WBCIS) from Kharif 2016 to provide financial support to farmers suffering crop loss/damage arising out of natural calamities and adverse weather incidence.

In  the  eventuality  of  natural  calamities,  the  State  Governments  are  empowered  to initiate  necessary  relief  measures  from  State  Disaster  Response  Fund  (SDRF),  which  is readily  available  with  them.  Additional  financial  assistance,  over  and  above  SDRF,  is considered from National Disaster Response Fund (NDRF), on receipt of Memorandum from State  Governments  and  in  accordance  with  extant  norms  and  procedures.  The  financial assistance under SDRF/NDRF in the wake of notified natural disasters is given by way of relief and not for compensation of loss as suffered/claimed.  Financial assistance provided under SDRF/NDRF is towards input subsidy for crop loss of 33% and above.

Government of India is also implementing the component National Seed Reserve (NSR) under Sub-Mission of Seeds & Planting Material (SMSP) to meet the requirement of Seeds  of  short  and  medium  duration  varieties  during  natural  calamities  and  unforeseen conditions  as  climate  change,  rise  in  temperature  and  increased  frequency  of  natural calamities  like  droughts,  floods  and  changes  in  rainfall  patterns  are  common  in  India.  22 agencies  are  implementing  NSR  including  one  at  the  national  level  with  National  Seeds Corporation and 21 in different States.

Interest Subvention Scheme (ISS) was launched in the year 2006-07 with a view to provide concessional short term crop loans including loan availed through Kisan Credit Card (KCC) to the farmers. Interest subvention of 2% and prompt repayment incentive of 3% on restructured crop loans is given to farmers affected by severe natural calamities.

(c): The  Government  is  already  providing  urea  to  farmers  at  subsidized  rates.  Urea  is being provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of  45  kg  bag  of  urea  is  Rs.242  per  bag  (exclusive  of  charges  towards  neem  coating  and taxes  as  applicable)  and  the  MRP  of  50  kg  bag  of  urea  is  Rs.268  per  bag  (exclusive  of charges  towards  neem  coating  and  taxes  as  applicable).  The  difference  between  the delivered cost of urea at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India. The Government of India is also granting subsidy on P&K fertilizers under the Nutrient Based Subsidy scheme. Under  the  policy,  the  subsidy  on  P&K  fertilizers  is  announced  by  the  Government  on  an annual basis before the beginning of each financial year. The Subsidy is announced for each nutrient i.e Nitrogen (N), Phosphorus (P), Potash (K) and Sulphur (S) on per kg basis, which is  converted  into  subsidy  per  tonne  depending  upon  the  nutrient  content  in  each  grade  of these fertilizers. MRP (Maximum Retail Price) of P&K fertilizers has been allowed to be fixed by manufactures/ importers at reasonable level. Presently, NBS Policy is applicable on 21 Grades of P&K fertilizers.

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