Lok Sabha Question No. 1907 (UNSTARRED), answered on 2020-03-03
Subject: Financial Condition of Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Asit Kumar Mal

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

## LOK  SABHA UNSTARRED QUESTION NO. 1907

TO BE ANSWERED ON THE 3 RD  MARCH, 2020

## FINANCIAL CONDITION OF FARMERS

1907. SHRI ASIT KUMAR MAL:

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

- (a) whether it is true that the financial condition of the farmers in the country is miserable and beyond description; and
- (b) the steps taken and the efforts made by the Government in this regard?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) & (b): The last Survey was conducted by National Sample Survey Office (NSSO) in 2013 and  therefore,  no  data  is  available  with  the  Ministry  indicating  the  financial  condition  of  the farmers. However, as per the last Survey conducted by NSSO in India in the year 2013, rural India had an estimated total of 90.2 million agricultural households, which constituted about 57.8 percent of the total estimated rural households of the country during the same period. Majority of the agricultural households which possessed more than 0.40 hectare land, reported cultivation as  their  principal  source  of  income.  Among  the  agricultural  households  having  less  than  0.01 hectare  land,  about  56  percent  reported  wage/salary  employment  as  their  principal  source  of income and another 23 percent reported livestock as their principal source of income. About 44 percent of the estimated agricultural households in the country had MGNREGA job card during the survey period. About 52 percent of the agricultural households in the country were estimated to be indebted.

Agriculture, including agricultural indebtedness, being a State subject, the State Governments take appropriate measures for development of agriculture in the State. However, Government of India supplements the efforts of States through appropriate policy measures and budgetary support. The Government of India supplements the efforts of the State Governments through various schemes/ programmes. The various schemes/ programmes of the Government of India are meant for the welfare of farmers by increasing production, remunerative returns and income  support  to  farmers.  A  list  of  various  initiatives  taken  by  the  Government  are  at Annexure. All these steps of the Government of India are for the welfare of the farmers of the country.

Further,  the  Government  had  constituted  an  Inter-Ministerial  Committee  in  2016  to recommend  a  strategy  for  Doubling  of  Farmers'  Income  (DFI)  by  the  year  2022.  The  DFI Committee submitted its report and thereafter the Government constituted an Empowered Body on 23.01.2019 to monitor and review the progress as per these recommendations. To achieve this,  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.

## List of various interventions and schemes launched for the benefit of farmers.

- (i) With a view to provide income support to all farmers' families across the country, to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, the Central Government started a new Central Sector Scheme, namely, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). The scheme aims to provide  a  payment  of  Rs.  6000/-  per  year,  in  three  4-monthly  installments  of  Rs. 2000/- to the farmers families, subject to certain exclusions relating to higher income groups.
- (ii) Further  with  a  view  to  provide  social  security  net  for  Small  and  Marginal  Farmers (SMF) as they have minimal or no savings to provide for old age and to support them in  the  event  of  consequent  loss  of  livelihood,  the  Government  has  decided  to implement another new Central Sector Scheme i.e. Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) for providing old age pension to these farmers. Under this Scheme, a  minimum  fixed  pension  of  Rs.  3000/-  will  be  provided  to  the  eligible  small  and marginal  farmers,  subject  to  certain  exclusion  clauses,  on  attaining  the  age  of  60 years.
- (iii) With a view to provide better insurance coverage to crops for risk mitigation, a crop insurance scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched from Kharif 2016 season. This scheme provides insurance cover for all stages of the crop  cycle  including  post-harvest  risks  in  specified  instances,  with  low  premium contribution by farmers.
- (iv) Giving  a  major  boost  for  the  farmer's  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.
- (v) Implementation of flagship scheme of distribution of Soil Health Cards to farmers so that the use of fertilizers can be rationalized.
- (vi) 'Per drop more crop' initiative under which drip/sprinkler irrigation is being encouraged  for  optimal  utilization  of  water,  reducing  cost  of  inputs  and  increasing productivity.
- (vii) 'Paramparagat Krishi Vikas Yojana (PKVY)' for promoting organic farming.
- (viii) Launch  of e-NAM  initiative to provide farmers an electronic transparent and competitive online trading platform.
- (ix) Under 'Har Medh  Par Ped', agro forestry is being promoted for additional income.  With the amendment of Indian Forest Act, 1927, Bamboo has been removed from  the  definition  of  trees.  A  restructured  National  Bamboo  Mission  has  been launched in the year 2018 to promote bamboo plantation on non forest government as well  as  private  land  and  emphasis  on  value  addition,  product  development  and markets.
- (x) 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.
- (xi) 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.
- (xii) To ensure flow of adequate credit, Government sets annual target for the flow of credit to the agriculture sector, Banks have been consistently surpassing the annual target. The  agriculture  credit  flow  target  has  been  set  at  Rs.  13.50  lakh  crore  for  the F.Y.2019-20 and Rs.15.00 lakh crore for F.Y. 2020-21.
- (xiii) Extending the reach of institutional credit to more and more farmers is priority area of the Government  and  to achieve this goal, the  Government  provides interest subvention  of  2%  on  short-term  crop  loans  up  to  Rs.3.00  lakh.  Presently,  loan  is available to farmers at an interest rate of 4% per annum on prompt repayment.
- (xiv) Further, under Interest Subvention Scheme 2018-19, in order to provide relief to the farmers  on  occurrence  of  natural  calamities,  the  interest  subvention  of  2%  shall continue to be available to banks for the first year on the restructured amount. In order to discourage distress sale by farmers and to encourage them to store their produce in warehouses  against  negotiable  receipts,  the  benefit  of  interest  subvention  will  be available to small and marginal farmers having Kisan Credit Card for a further period of upto six months post harvest on the same rate as available to crop loan.
- (xv) The Government has extended the facility of Kisan Credit Card (KCC) to the farmers practicing  animal  husbandry  and  fisheries  related  activities.    All  processing  fee, inspection, ledger folio charges and all other services charges have been waived off for fresh renewal of KCC. Collateral fee loan limit for short term agri-credit has been raised from Rs.1.00 lakh to Rs.1.60 lakh.  KCC will be issued within 14 days from the receipt of completed application.

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