Lok Sabha Question No. 2587 (UNSTARRED), answered on 2019-07-09
Subject: Doubling of Farmers Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Hema Malini

O.I.H

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

## LOK  SABHA UNSTARRED QUESTION NO.2587

TO BE ANSWERED ON THE 9 TH   JULY, 2019

## DOUBLING OF FARMERS INCOME

2587.     SHRIMATI  HEMA MALINI:

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

- (a) whether  the  Government  had set any target in February 2016 to double the  income of  farmers  by  the year  2022  and  the  Committee  on Doubling Farmers Income had also been constituted  to  move  forward  in  this direction;
- (b) if so, the details thereof;
- (c) whether    the    Government    has  formulated    any    policy    on    the    basis  of    the suggestions  given  by  the said Committee to double the income of farmers by the year 2022;
- (d) if so, the details thereof; and
- (e) whether  the  outcome  has  been positive as expected and if so, the details thereof?

## ANSWER

MINISTER  OF AGRICULTURE AND FARMERS WELFARE

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

- (a) & (b): Yes Sir. The Government has set a target to double the income of farmers by the year  2022.  The  Government  had  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 has submitted its Report to the Government in September, 2018.
- (c) & (d): The Committee on Doubling Farmers' Income (DFI) recognises agriculture as a value led enterprise and has identified seven major sources of growth, viz., improvement in crop productivity; improvement in livestock productivity; resource use efficiency or savings in the cost of  production;  increase  in  the  cropping  intensity;  diversification  towards  high  value  crops; improvement in real prices received by farmers; and shift from farm to non-farm occupations.

Several initiatives have already been rolled out on the recommendations of DFI Committee which inter-alia include advocating progressive market reforms through the State Governments, Encouraging  contract  farming  through  the  State  Governments  by  promulgating  of  Model Contract  Farming Act,  Up-gradation of Gramin Haats to work as centers of aggregation and for Contd…2/-

direct  purchase  of  agricultural  commodities  from  the  farmers,  e-NAM  to  provide  farmers  an electronic online trading platform, Distribution of Soil Health Cards to farmers so that the use of fertilizers can be rationalized, Increase water efficiency through PMKSY-'Per drop more crop', Better insurance coverage to crops for risk mitigation under Pradhan Mantri Fasal Bima Yojana (PMFBY), 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,  providing  total  interest subvention up to 5% (inclusive of 3% prompt repayment incentive) on short-term crop loans up to Rs. 3.00 lakh, thus making loan available to farmers at a reduced rate of 4% per annum on prompt repayment and extended the facility of Kisan Credit Card (KCC) for animal husbandry and  fisheries  related  activities  as  well  as  extend  the  Interest  Subvention  Facilities  to  such categories of farmers.

(e): Agriculture  being  a  State  subject,  the  State  Governments  undertake  development  of perspective plans and  ensures effective implementation of the  programmes/  schemes. Government  of  India  supplements  the  efforts  of  the  State  Governments  through  various Schemes/ Programmes aimed at improving production, post harvest & management, including progressive agri-market reforms, access to credit, risk management and income support. Some important programmes/outcome thereafter include:

i)      Simplification  of procedures to avail Kisan Credit Cards (KKC), which provides agriculture credit to farmers at subsidized rates, with a 2% interest subvention (IS) and Prompt Repayment Incentive (PRI) of 3% so as to make the effective rate of interest as 4% include:

- a)  Activities relating to Animal Husbandry and Fisheries included in KCC - benefits of  IS and PRI also extended
- b)  Indian  Banker's  Association  has  waived  off  processing  fee,  inspection,  ledger  folio charges and all other service charges for renewal/fresh issue of KCC.

c)   RBI has raised the collateral free existing agriculture  loan limit from Rs.1 lakh to Rs.1.60 lakh.

ii)    Claims  of  Rs.  8,665  crore  were  paid  to  553.01  lakh  farmers  in  the  year  2018-19  under Pradhan Mantri Fasal Bima Yojana (PMFBY).

iii) Giving a major boost for the farmers income, the Government 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.

iv)  To  provide  income  support  to  all  farmers'  families  across  the  country  and  enable  them  to take care of expenses related to agriculture and allied activities as well as domestic needs, the 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 4monthly installments of Rs. 2000/- to the farmers, subject to certain exclusions relating to higher income groups.  An  amount  of  Rs.  12646.579  crore  has  been  distributed  to  632.32895  lakh farmers in the year 2018-19.

Contd…2/-

v)   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 for providing old age pension to these farmers. Under this Scheme, a minimum fixed pension of Rs. 3000/-  be  provided  to  the  eligible  small  and  marginal  farmers,  subject  to  certain  exclusion clauses,  on  attaining  the  age  of  60  years.  The  scheme  aims  to  cover  around  5  crore beneficiaries in the first three years. It would be a voluntary and contributory pension scheme, with entry age of 18 to 40 years. The Government has approved a budgetary provision of Rs. 10774.50 crore for the scheme till March, 2022.

(vi)    Giving  a  major  boost  to  the  pro-farmer  initiatives,  the  Government  has  approved  a  new Umbrella  Scheme  'Pradhan Mantri Annadata AaySanrakshan  Abhiyan (PM-AASHA)'.  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 towards the welfare of farmers.

(vii)  585  wholesale  regulated  markets  of  16  States  and  02  UTs  have  been  integrated  with National Agriculture Market (e-NAM) platform.  e-NAM has recently achieved another milestone by commencing inter-State trade between mandis of two different States. Earlier trade used to happen  either  within  the  Agricultural  Produce  Market  Committees  (APMCs)  or  between  two APMCs situated within same state. Eleven States/UT have participated in inter-state trade on eNAM platform.

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