Lok Sabha Question No. 324 (UNSTARRED), answered on 2019-02-05
Subject: Agricultural Loans
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: N.K. PREMACHANDRAN

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

## LOK  SABHA UNSTARRED QUESTION NO.324

TO BE ANSWERED ON THE 5 TH   FEBRUARY, 2019

## AGRICULTURAL  LOANS

324. SHRI N.K. PREMACHANDRAN:

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

- (a) whether  the  Union  Government  proposes to write off the agricultural loans, if so, the action taken thereon;
- (b) whether  it  has  come  to  the  notice  of  the  Government  that  farmers  committed  suicide due  to  the  attachment  and  other actions  initiated  by  the  banks  for  the recovery of loan and if so, the action taken thereon;
- (c) whether the Government proposes to declare moratorium on the agricultural loans  and if  so, the  details  of  the  action taken thereon;
- (d) whether  it  has  come  to  the  notice  of    the    Government    that    the    farmers    are withdrawing  from  farming  due  to  heavy loss;
- (e) if so, the action taken to protect farmers  and  whether  the  Government proposes  to declare  support  prices  for agricultural produce; and
- (f) if so, the details 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):     There is no proposal, at present, under consideration of the Government of India to writeoff the agricultural loan of farmers.
- (b):     The National Crime Records Bureau (NCRB) under the Ministry of Home Affairs compiles and  disseminates  information  on  suicides,  in  its  publication  titled  'Accidental  Deaths  and Suicides  in  India'  (ADSI).  As  per  Accidental  Deaths  and  Suicide  in  India  (ADSI)  Report,  the reasons for suicide by farmers are manifold, which inter-alia include indebtedness, crop failure, drought,  socio-economic  and  personal  reasons.  'Bankruptcy  or  indebtedness'  and  'Farming relating issues' are reported as major causes of suicides among Farmers.
- (c): With a view to enhance production and productivity the Government announces Ground level   Agriculture   Credit Flow (GLC)   Target every year. These targets have consistently been

surpassed by the Banks.  The GLC Target for 2017-18 was 10 lakh crore and against this target the Banks have disbursed an amount of Rs. 11.68 lakhs crore. The GLC Target for 2018-19 has been kept as Rs. 11 lakh crore and till September, 2018 the Banks have disbursed an amount of Rs. 6.45 lakh crore.

Reserve  Bank  of  India  (RBI)  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, is in line with the National Disaster Management Framework.

(d)  to  (f):    Government  is  committed  to  farmers  welfare  and  towards  this  objective  it  has changed  its  strategy  from  being  production  centric  to  an  income  centric  one.    Government constituted  an  Inter-Ministerial  Committee  on  13.04.2016  under  the  Chairmanship  of  Chief Executive Officer, National Rainfed Area Authority, Department of Agriculture, Cooperation and Farmers Welfare to examine issues relating to doubling of farmers' income and recommend a strategy  to  achieve  the  same  by  the  year  2022.    Alongside  working  on  a  comprehensive strategy,  the  Committee  has  been  parallelly  suggesting  various  interventions  like  Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, a five year roadmap  for  pulses  production  for  achieving  a  level  of  production  of  24  million  tones  and comprehensive roadmap for increasing the production of oilseeds in the country.

Government fixes Minimum Support Prices (MSPs) of 22 mandated agricultural crops and  Fair  &  Remunerative  Price  (FRP)  for  sugarcane  based  on  the  recommendations  of  the Commission  for  Agricultural  Costs  &  Prices  (CACP),  after  considering  the  views  of  State Governments  and  Central  Ministries/Departments  concerned  &  other  relevant  factors.  The mandated  crops  are  14  crops  of  Kharif  season  viz.  paddy,  jowar,  bajra,  maize,  ragi,  arhar, moong, urad, groundnut-in-shell, soyabean, sunflower,  sesamum, nigerseed and cotton; 6 rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed/mustard and safflower and two  other commercial crops viz. Jute and copra.  In addition, MSP for toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed/mustard and copra respectively. While recommending MSPs,  CACP  considers  the  cost  of  production  and  host  of  factors  such  a  demand-supply situation,  trends  in  domestic  and  international  prices,  inter-crop  price  parity,  terms  of  trade between agricultural and non-agricultural sectors and the likely impact of MSP on consumers an overall economy along with rational utilization of scare natural resources like land and water.

Government  has  increased  the  MSP  for  all  notified  Kharif  &  Rabi  Crops  and  other commercial  crops  for  the  season  2018-19  with  a  return  of  atleast  50  percent  over  cost  of production. This decision of the Government was a historic one as it redeemed the promise of fixing the MSPs atleast at a level of 50 percent return over cost of production as announced in the Union Budget 2018-19.

Apart  from  these,  the  Government  implements  the  Price  Support  Scheme  (PSS)  for procurement  of  pulses,  oilseeds  and  copra  and  Price  Deficiency  Payment  Scheme  (PDPS) implements for oilseeds.

********