Lok Sabha Question No. 1608 (UNSTARRED), answered on 2019-02-12
Subject: Various Incentives for Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KAMLA DEVI PATLE

## GOVERNMENT OF INDIA

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

## LOK  SABHA UNSTARRED QUESTION NO.1608

TO BE ANSWERED ON THE  12 TH  FEBRUARY, 2019

## VARIOUS INCENTIVES FOR FARMERS

1608.  SHRIMATI KAMLA DEVI PAATLE:

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

- (a) whether the Government is satisfied with various concessions/ incentives provided to the farmers for development of agricultural sector;
- (b) if so, the details thereof and the reaction of the Government thereto;
- (c) whether suggestions have been received from various quarters to give agriculture the status of industry;
- (d) if so, the details thereof;
- (e) the benefits likely to be accrued to the farmers as a result thereof; and
- (f) the  details  of  comprehensive  action  plan  initiated  by  the  Government  for  sustained development of agricultural sector and farmers including the outcome thereof?

## 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) & (b): Agriculture being a State subject, the State Governments undertake development of perspective plans and ensure effective implementation of the programmes/ schemes.  Also,  Government  of  India  supplements  the  efforts  of  the  State  Governments through various Schemes/ Programmes.

Several other initiatives have already been taken among each of the above mentioned strategies, which inter-alia, include:

- (i) Implementation of flagship scheme of distribution of Soil Health Cards to farmers so that the use of fertilizers can be optimized.
- (ii) 'Paramparagat  Krishi  Vikas  Yojana  (PKVY)'  under  which  organic  farming  is  being promoted.
- (iii) 'Per drop more crop' initiative under which drip/sprinkler irrigation is being encouraged for optimal utilization of water.
- (iv) Launch of eNAM initiative to provide farmers an electronic online trading platform.
- (v) With  a  view  to  provide  better  insurance  coverage  to  crops  for  risk  mitigation, Government  has  launched  a  crop  insurance  scheme  namely  Pradhan Mantri  Fasal Bima  Yojana  (PMFBY) from  Kharif  2016  season.  This  scheme  provides  insurance cover  for  all  stages  of  the  crop  cycle  including  post-harvest  risks  in  specified instances.
- (vi) The Government provides total interest subvention up to 5% (inclusive of 3% prompt repayment  incentive)  on  short-term  crop  loans  up  to  Rs.  3.00  lakh.  Thus,  loan  is available to farmers at a reduced rate of 4% per annum on prompt repayment.
- (vii) 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.
- (viii) Under 'Har Medh Par Ped', agro forestry is being promoted.  With the amendment of Indian Forest Act, 1947 Bamboo grown outside forest area has been removed from the  definition  of  trees  and  a  mission  have  been  launched  to  promote  bamboo plantation.
- (ix) Giving  a  major  boost  for  the  farmers  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.
- (x) 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.
- (xi) Rashtriya Gokul Mission to enhance milk production and productivity of bovines and to make milk production more remunerative to the farmers.
- (xii) National  Livestock  Mission  to  increase  productivity  and  genetic  improvement  of livestock.
- (xiii) Foreseeing high potential in fisheries sector, a Blue Revolution with multi dimensional activities  mainly  focusing  on  fisheries  production,  both  inland  and  marine  is  being implemented.
- (xiv)  Government sets annual target for the flow of credit to the agriculture sector, Banks have  been  consistently  surpassing  the  annual  target.  The  current  year's  agriculture credit flow target has been set at Rs. 11 lakh crore.
- (xv) Initiating market reforms through the State Governments.
- (xvi) Encouraging  contract  farming  through  the  State  Governments  by  promulgating  of Model Contract Farming Act.
- (xvii)  Up  gradation  of  Gramin  Haats  to  work  as  centers  of  aggregation  and  for  direct purchase of agricultural commodities from the farmers.

(c) & (d): The  Government  has  been  receiving  suggestions  from  various  quarters  to accord status of industry to agriculture.  However, the Government seeks to bestow on the agriculture sector as many benefits as available to those in the manufacturing sector, such as, easy availability of credit and other inputs and infrastructure facilities for development of agriculture sector  including marketing and post harvest management.

(e) & (f): The Government has been reorienting the agriculture sector by focusing on an income-centeredness  which  goes  beyond  achieving  merely  the  targeted  production.  The income  approach  focuses  on  achieving  high  productivity,  reduced  cost  of  cultivation  and remunerative price on the produce, with a view to earn higher profits from farming.

The Government has set a target of doubling of farmers' income by the year 2022. The Government has constituted an Inter-Ministerial Committee to examine issues relating to doubling  of  farmers'  income  and  recommend  a  strategy  to  achieve  doubling  of  farmers' income in real terms by the year 2022. The Committee has submitted its report.

The committee has identified  seven  sources  of  income  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. The committee is also looking into the investments in and for agriculture e.g. increasing public investments for agriculture-rural roads, rural electricity, irrigation; the need for policy support to enable investments by corporate sector in agriculture.

The Government with a view to augment the income of Small and Marginal Farmers, in the Union Budget 2019 has recently announced 'Pradhan  Mantri  Kisan  SAmman  Nidhi (PM-KiSaN)' 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,  subject  to  certain  exclusions,  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  definition  of  a  Small  and  Marginal landholder  farmer  family  is  comprising  husband,  wife  and  minor  children  who  collectively own cultivable land upto 2 hectare as per land records of the concerned State/UT.

The Government has approved for giving the facility of Kisan Credit Card (KCC) to the farmers practicing animal husbandry and fisheries related activities and has also decided to extend the Interest Subvention Facilities to such categories of farmers.

All  these  steps  are  implemented  to  reduce  agrarian  distress  and  increase  the farmers' income.

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