Lok Sabha Question No. 272 (UNSTARRED), answered on 2019-02-05
Subject: Farmers Debts
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: C. MAHENDRAN

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

## LOK  SABHA UNSTARRED QUESTION NO. 272

## TO BE ANSWERED ON THE 5 TH  FEBRUARY, 2019

## FARMERS DEBTS

## 272. SHRI C. MAHENDRAN:

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

- (a) whether India's farmers are buckling under the weight of their debts and rural suicides are spiking dangerously;
- (b) if so, the details thereof;
- (c) whether the Government has noted that rural households are desperate for relief;
- (d) if so, the details thereof, State-wise; and
- (e) the steps taken by the Government in this regard?

## 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): 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). These Reports on suicides are available upto 2015 on its website. As per the ADSI Reports during the year 2014 a total of 12,360 persons involved in farming sector (consisting of 5,650 farmers/cultivators and 6,710 agricultural labourers) and 2015 a total of 12,602 persons involved in farming sector (consisting of 8,007 farmers/cultivators and 4,595 agricultural  labourers)  committed  suicides.  The  Reports  for  the  year  2016  onwards  have  not been published yet.

As per ADSI Report of 2015 'Bankruptcy or Indebtedness' and 'Farming Related Issues' are reported as major causes of suicides among farmers/ cultivators. Other prominent causes of farmers/ cultivators suicides are family problems, illness, etc.

(c) to (e): Agriculture being a State subject, the State Governments undertakes development  of  perspective  plans  and  ensures  effective  implementation  of  the  programmes/ schemes. Also, Government of India supplements the efforts of the State Governments through various Schemes/ Programmes. 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.

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With  a  view  to  ensuring  availability  of  agriculture  credit  at  a  reduced  interest  rate  to farmers, the Government is implementing the Interest Subvention Scheme (ISS) since 2006-07. Under ISS, the Government is providing interest subvention to make available short-term crop loans  upto  Rs.3  lakh  for  a  period  of  one  year  at  an  effective  interest  rate  of  4%  per  annum against  the  normal  lending  rate  of  9%  to  prompt  payee  farmers.  Thus,  the  prompt  payee farmers are getting an interest subvention of 5% per annum. Government sets annual target for the flow of credit to the agriculture sector. Banks have been consistently surpassing the annual target.

In order to ensure that all eligible farmers are provided with hassle-free and timely credit for their  agricultural  operations, the Government has introduced the Kisan Credit Card (KCC) Scheme,  which  enables  them  to  draw  cash  to  purchase  agricultural  inputs  such  as  seeds, fertilizers,  pesticides  as  well  as  meet  other  agricultural  and  consumption  needs.  The  KCC Scheme has since been simplified by providing the farmers with ATM enabled debit card based on one-time documentation and built-in cost escalation in the limit, etc.

To bring small,  marginal, tenant  farmers,  oral  lessees,  etc.  into  the  fold  of  institutional credit,  Joint  Liability  Groups  (JLGs)  have  been  promoted  by  banks.  The  Government  also promotes formation of Farmer Producer Organisations (FPOs) in a big way to enable farmers to leverage economies of scale, not only for agricultural inputs but also for enhanced marketing opportunities.

Further,  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 to the Government.

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.

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

- (i) Initiating market reforms through the State Governments.

(ii) Encouraging contract farming through the State Governments by promulgating of Model Contract Farming Act.

- (iii) Up gradation of Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers.
- (iv) Launch of eNAM initiative to provide farmers an electronic online trading platform.

(v) Implementation of flagship scheme of distribution of Soil Health Cards to farmers so that the use of fertilizers can be optimized.

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- (vi) 'Per drop more crop' initiative under which drip/sprinkler irrigation is being encouraged for optimal utilization of water.
- (vii) 'Paramparagat  Krishi  Vikas  Yojana  (PKVY)'  under  which  organic  farming  is  being promoted.
- (viii) 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.
- (ix) 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.
- (x) 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.
- (xi) Giving a major boost to the pro-farmer initiatives, the Government has approved a new Umbrella  Scheme  Pradhan  Mantri Annadata  Aay  Sanrakshan 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 to  protect  the  farmers'  income  which  is  expected  to  go  a  long  way  towards  the  welfare  of farmers.
- (xii) 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.
- (xiii) Rashtriya Gokul Mission to enhance milk production and productivity of bovines and to make milk production more remunerative to the farmers.
- (xiv) National Livestock Mission to increase productivity and genetic improvement of livestock.
- (xv)    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.

The Government with a view to augment the income of Small and Marginal Farmers, in the Union Budget 2019 has 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  having  cultivable  land  holding  upto  2  hectare.  This  financial benefit  will  be  provided  in  3  equal  instalments  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  existing land-ownership system  in the States/ Union  Territories will be used for identification of beneficiaries.

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

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