Lok Sabha Question No. 3481 (UNSTARRED), answered on 2020-03-16
Subject: High Level Expert Group Set up by Finance Commission
Ministry: FINANCE
Asked by: Bidyut Baran Mahato, Sudheer Gupta, Gajanan Chandrakant Kirtikar, Sanjay Sadashivrao Mandlik, Pritam Gopinath Munde, Chandra Sekhar Sahu, Shrirang Appa Barne

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3481

TO BE ANSWERED ON 16.03.2020

## HIGH LEVEL EXPERT GROUP SET UP BY FINANCE COMMISSION

## 3481.  SHRI BIDYUT BARAN MAHATO:

SHRI SUDHEER GUPTA:

SHRI GAJANAN KIRTIKAR:

SHRI SANJAY SADASHIV RAO MANDLIK:

DR. PRITAM GOPINATHRAO MUNDE:

SHRI CHANDRA SEKHAR SAHU:

SHRI SHRIRANG APPA BARNE:

Will the Minister of FINANCE be pleased to state:

- (a) whether there is a need to identify the impediments for private sector investments along the agricultural value chain and if so, the reaction of the Government in this regard;
- (b) whether the 15th Finance Commission has set up a high-level expert group to recommend measurable  performance  incentives  for  States  to  encourage  agriculture  exports  and  promote crops to enable high import substitution;
- (c) if so, the details thereof including the terms and references/composition of this group along with the mandate assigned to them and the time by which the said group is likely to submit its report;
- (d) the details of other steps taken to improve the Sector's global competitiveness; and
- (e) whether the Government has received the reports of 15th Finance Commission and if so, the details and the outcome thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a)  The  Government  has  been  promoting  private  investment  in  agriculture  through  Public Private Partnership in various schemes. The Government of India has also circulated a Model Act-Agriculture  Produce  and  Livestock  Marketing  (Promotion  &  Facilitation)  Act,  2017  and Model  Act-Agriculture  Produce  &  Livestock  Contract  Farming  and  Services  (Promotion  & Facilitation)  Act,  2018,  with  the  aim  to  encourage  more  investment  in  agriculture.  The Government has also incorporated a 'Framework for Supporting Public Private Partnership for Integrated  Agricultural  Development  (PPPIAD)'  under  the  Rashtriya  Krishi  Vikas  Yojana  Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY-RAFTAAR) in the  scheme  guidelines  to  facilitate  integrated  projects  led  by  private  sector  players  in  the agriculture and allied sectors, with a view to aggregating farmers, providing additional income and integrating the agriculture supply chain.

(b) & (c) The Fifteenth Finance Commission has constituted a High-Level Expert Group on Agriculture Exports to recommend measurable performance incentives for States to encourage agricultural export as well as to promote crops to enable high import substitution. The Group is headed  by  Shri.  Sanjiv  Puri,  Chairman  and  Managing  Director,  ITC  and  consists  of  other experts from the private and Government sectors. The Group is expected to submit its report to the Commission by May 2020.

(d) Government of India is implementing through State Government several crop development schemes/  programmes  such  as  Mission  for  Integrated  Development  of  Horticulture  (MIDH), National Food Security Mission (MFSM), Rashtriya Krishi Vikas Yojana (RKVY), Bringing Green Revolution  to  Eastern  India  (BGREI),  National  Mission  for  Sustainable  Agriculture  (NASA), Pradhan  Mantri  Krishi  Sinchai  Yojana  etc.  Under  these  Schemes/  Programmes,  funds  are provided to States for implementation of State-specific agricultural strategies, including incentives  to  farmers  for  use  of  quality  seeds,  improve  soil  health  under  Integrated  Pest Management  (IPM),  farm  mechanization,  cluster  demonstrations  on  improved  package  of practices, demonstrations on cropping system, seed distribution of high yielding varieties , farm machineries etc. The States are also provided support for creation of agricultural infrastructure for optimal use of water and other natural resources. Also, Government has recently initiated a comprehensive  'Agriculture  Export  Policy'  aimed  at  doubling  the  agricultural  exports  and integrating  Indian  farmers  and  agricultural  products  with  the  global  value  chains  along  with creation of agri-cells in many Indian embassies abroad to take care of agricultural trade related issues.

(e)The  Fifteenth  Finance  Commission  has  submitted  its  report  for  the  year  2020-21  to  the President of India which is available on the website of the Finance Commission: https://fincomindia.nic.in/.

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