Lok Sabha Question No. 1644 (UNSTARRED), answered on 2019-07-02
Subject: Subsidy to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Kaushalendra Kumar

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

## LOK  SABHA

UNSTARRED QUESTION NO. 1644 TO BE ANSWERED ON THE 2 ND  JULY, 2019

## SUBSIDY TO FARMERS

1644. SHRI KAUSHALENDRA KUMAR:

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

(a) the  details  of  the  expenditure  incurred  by  the  Government  on  the  subsidy  to  the farmers during the last five years, State and Scheme-wise;

- (b) the details of the benefits in respect of seeds, fertilizers and insecticides for which the Government is working to make it available to farmers in the next five years;
- (c) whether the Government proposes to provide interest-free loans to farmers; and
- (d) if so, the details thereof along with the criteria being adopted for it?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a): Agriculture is a State Subject. Government of India facilitates the State Governments through many Centrally Sponsored and Central Sector Schemes. A statement showing the amount spent during the last five years is annexed.

(b): The  Government  is  implementing  Sub-Mission  on  Seeds  and  Planting  Material (SMSP) under National Mission on Agricultural Extension and Technology (NMAET).  The main  objective  of  the  Sub-Mission  is  to  develop/strengthen  seed  sector  and  to  enhance production and multiplication of certified/ quality seeds of all agricultural crops and making it available to the farmers and also place an effective system for protection of plant varieties, rights of farmers and plant breeders to encourage development of new varieties of plants.

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. Accordingly, all farmers are being supplied urea at the subsidized rates.

The  Government  is  already  implementing  Nutrient  Based  Subsidy  (NBS)  Scheme w.e.f. 1.4.2010 for P&K fertilizers. Any farmer, who procures these fertilizers at MRP, avails the benefit of subsidy.

Government  of  India  has  adopted  Integrated  Pest  Management  (IPM)  as  cardinal principle and main plank of plant protection in the overall Crop Production Programme since 1985. IPM is an eco-friendly approach which encompasses cultural, mechanical, biological and  need  based  chemical  control  measures.  The  IPM  approach  is  being  disseminated through various schemes/ projects at national and state level.

(c) & (d): With a view to ensure availability of agriculture credit at concessional rate to small and marginal farmers, the Government of India had launched an Interest Subvention Scheme (ISS) in the year 2006-07. As per the extant guidelines of the Government of India, Interest  Subvention  of  2%  per  annum  is  provided  to  Public  Sector  Banks,  Private  Sector Banks  (in  respect  of  loans  given  by  their  rural  and  semi  urban  branches),  Cooperative Banks and Regional Rural Banks on their own funds used for short term crop loans upto Rs.3 lakh per farmer. The lending institutions make available short-term credit at the ground level at 7% per annum to small and marginal farmers. The farmers could be individual/joint borrowers  who  are  cultivators,  tenant  farmer,  oral  lessees  &  share  croppers,  self  help groups/joint liability group of farmers including tenant farmers.

In  addition  to  the  above,  a  scheme  was  introduced  from  2009-10  for  providing additional  interest  subvention  to  the  prompt  paying  farmers wherein  presently  3%  Interest Subvention as an incentive to prompt payee farmers is given. This subvention is available to farmers on the short term production credit upto maximum amount of Rs.3.00 lakh availed during the year. Thus the prompt paying farmers are getting short term crop loans @4% per annum from various banks.

The Government has taken a major farmer friendly step of extending the benefit of KCC  with  interest  subvention  to  the  farmers  engaged  in  activities  related  to  Animal Husbandry & Fisheries. Farmers already possessing a KCC and involved in activities related to animal husbandry and fisheries can avail an additional sub limit within an overall limit of three  lakh  and  the  interest  subvention/prompt  repayment  incentive will  also  be  applicable within the credit limit.

Reserve Bank of India (RBI) has also raised the collateral free  existing  agriculture loan limit from Rs. 1 lakh to 1.60 lakh. Further, Indian Banks Association (IBA) has waived off  processing fee, inspection, ledger folio charges and all other service charges for fresh issue/renewal of KCC.

## ANNEXURE

STATEMENT  INDICATING  AMOUNT  RELEASED  DURING  THE  LAST  FIVE  YEARS  UNDER VARIOUS SCHEMES IMPLEMENTED BY THE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

|       |                                                                               |         |          |          | (Rs in Crore)   | (Rs in Crore)   |
|-------|-------------------------------------------------------------------------------|---------|----------|----------|-----------------|-----------------|
| S.NO. | SCHEME                                                                        | 2014-15 | 2015-16  | 2016-17  | 2017-18         | 2018-19         |
| 1     | National Food Security Mission(NFSM)                                          | 1872.74 | 1162.34  | 1286.03  | 1384.16         | 1614.51         |
| 2     | National Mission on Oil Seeds and Oil Palm (NMOOP)                            | 319.07  | 305.81   | 327.50   | 266.05          | 343.20          |
| 3     | Mission for Integrated Development of Horticulture (MIDH)                     | 1956.45 | 1696.80  | 1493.07  | 2033.77         | 2003.19         |
| 4     | National Mission for Sustainable Agriculture(NMSA/RADP)                       | 1391.77 | 701.38   | 658.34   | 695.62          | 1060.21         |
| 5     | National Mission on Agriculture Extension and Technology(NMAET)               | 1241.86 | 1033.10  | 1192.75  | 2259.86         | 2582.14         |
| 6     | National Project on Agro Forestry (NPAF)                                      | 0.00    | 51.19    | 0.00     | 42.66           | 28.58           |
| 7     | Soil Health Card (SHC)                                                        | 0.00    | 0.00     | 0.00     | 0.00            | 0.00            |
| 8     | PM Krishi Sinchai Yojna (PMKSY)                                               | 0.00    | 1555.94  | 1991.25  | 2819.24         | 2918.38         |
| 9     | National Agriculture Market (e- NAM)                                          | 0.00    | 0.00     | 44.90    | 0.00            | 0.00            |
| 10    | Rashtriya Krishi Vikas Yojana(RKVY)                                           | 8443.20 | 3940.01  | 3892.02  | 3560.11         | 3370.71         |
| 11    | National Bamboo Mission (NBM)                                                 | 77.36   | 0.00     | 0.00     | 0.00            | 150.04          |
| 12    | National Agroforestry Bamboo Mission (NABM)                                   | 0.00    | 66.77    | 16.90    | 10.53           | 0.00            |
| 13    | Sub Mission on Agro-Forestry (SMAF)                                           | 0.00    | 0.00     | 22.50    | 42.27           | 0.00            |
| 14    | Interest Subsidy                                                              | 0.00    | 0.00     | 0.00     | 13045.72        | 11495.66        |
| 15    | Intergated Scheme of Agriculture Marketing(ISAM)                              | 979.80  | 570.30   | 782.49   | 637.21          | 525.98          |
| 16    | Intergated Scheme of Agriculture Cooperation(ISAC)                            | 99.41   | 121.70   | 129.81   | 228.18          | 137.79          |
| 17    | Implementation of Market Intervention Scheme/Price Support Scheme(MIS/ PSS)   | 0.00    | 0.00     | 0.00     | 700.92          | 1400.00         |
| 18    | Price Stabilization Fund                                                      | 50.00   | 660.00   |          | 0.00            | 0.00            |
| 19    | Diesel Subsidy                                                                | 0.00    | 0.00     | 0.00     | 21.34           | 0.00            |
| 20    | Promotion of Agriculture Mechanization for in-situ Management of Crop residue | 0.00    | 0.00     | 0.00     | 0.00            | 584.33          |
| 21    | Income Support Scheme                                                         | 0.00    | 0.00     | 0.00     | 0.00            | 6050.56         |
| 22    | Distribution of Pulses to States/Union Territories                            | 0.00    | 0.00     | 0.00     | 0.00            | 0.00            |
| 23    | Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)                     | 0.00    | 0.00     | 0.00     | 0.00            | 0.00            |
|       | Total                                                                         | 16354.3 | 11798.57 | 11798.16 | 27694.84        | 34265.28        |

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