Lok Sabha Question No. 1464 (UNSTARRED), answered on 2019-02-12
Subject: Linking Agriculture with MGNREGS
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: J.C. DIVAKAR REDDY

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

## LOK  SABHA UNSTARRED QUESTION NO. 1464

TO BE ANSWERED ON THE 12 TH  FEBRUARY, 2019

## LINKING AGRICULTURE WITH MGNREGS

1464.  SHRI J.C. DIVAKAR REDDY:

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

- (a) whether  the  Government  has  set  up  an  expert  committee  to  study  the  situation  of  linking agriculture with MGNREGS, if so, the details thereof and steps being taken in this regard;
- (b) whether the Government has any proposal to give one time settlement for agricultural loans also on the lines of banks and industry given so far, if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government proposes to give pension to farmers for their social security, if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government proposes to bring out a national policy/ procedure to deal with loans taken by farmers to waive them off in case they suffer losses on account of crop failure or due to natural  disasters  like  floods  and  drought  to  free  farmers  from  debt  completely  and  whether  the policy will be implemented in all the States in consultation with NITI Aayog; and
- (e) if so, the details thereof and if not, the reasons therefor?

## 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): As reported by NITI Aayog, a Sub Group of Chief Ministers was constituted on 17 th June, 2018  for  policy  co-ordination  between  agriculture  sector  and  Mahatma  Gandhi  National  Rural Employment Guarantee Scheme (MGNREGS) and to suggest an approach that enhances incomes of farmers and reduces agrarian distress, with thrust on pre-sowing and post harvest interventions using Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for creating durable assets. Five critical areas in which MGNREGA could positively help include: to reducing the cost of cultivation; enhancing the production through efficient use of water or other inputs; providing remunerative price to farmers by incentivizing aggregation and market infrastructure; rehabilitation of  agricultural  land  and  assets  after  natural  hazards  or  re-plantation  using  MGNREGA  fund  and bringing diversification in agriculture to help occupational diversification and maximizing profit. The Sub group has not finalized its report.
- (b): No  such  proposal  for  farm  loan  waiver  is  under  consideration  of  Government  of  India  at present.  However,  Government  of  India  and  Reserve  Bank  of  India  (RBI)  have  undertaken  a number of steps to provide relief and easy & hassle-free loans to debt ridden farmers, which,

inter alia, include the following:

-  Reserve Bank of India 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,  which  is  in  line  with  the  National Disaster  Management  Framework.  Further,  in  terms  of  RBI's  Master  circular  on  Asset Classification, banks are free to restructure and extend the repayment period of loans/give stress dispensation scheme to any category of borrowers which have come under stress as per their commercial judgment and Board approved loan policy within the broad prudential guidelines  prescribed  by  RBI.  In  addition,  as  per  the  Priority  Sector  Lending  Guidelines issued  by  RBI,  loans  to  distressed  farmers  to  repay  non-institutional  lenders,  are  eligible under priority sector.
-  The  Government  has  introduced  the  Kisan  Credit  Card  (KCC)  Scheme,  which  enables farmers to purchase agricultural inputs such as seeds, fertilizers, pesticides, etc. and draw cash to satisfy their agricultural and consumption needs. The KCC Scheme has since been simplified. It has the provision of ATM enabled debit card with, inter alia, facilities of one-time documentation and built-in cost escalation in the limit, etc.
-  RBI vide its notification dated 13th November, 2014 have instructed the Banks to finance the Joint Liability Groups (JLGs) to bring small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional credit.
-  RBI  has  issued  Priority  Sector  Lending  (PSL)  guidelines,  which  mandate  all  Domestic Scheduled Commercial Banks to earmark 18% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposure (OBE), whichever is higher, as on the corresponding date of the previous year, for lending to Agriculture for Small and Marginal Farmers.

In  addition  to  the  above,  as  per  PSL  guidelines,  loans  to  distressed  farmers  to  repay  noninstitutional lenders are eligible under priority sector. Besides loans to stressed persons (other than farmers) not exceeding Rs.1,00,000/- per borrower to repay their debt to non-institutional lender are also eligible for the purpose of priority sector lending by banks.

(c): There are various welfare Schemes/ programmes being implemented by the Government which,  among  others,  cover  people  above  60  year  of  age  including  farmers.  These  include  Atal Pension  Yojana(APY),  Ayushman  Bharat-Pradhan  Mantri  Jan  Arogya  Yojana  (PMJAY),  Indira Gandhi Old Age Pension Scheme (IGNOAPS), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Integrated  Programme  of  Older  Persons  (IPOP),  Rashtriya  Vayoshri  Yojana  (RVY),  Rashtriya Swasthya Bima Yojana (RSBY) and Pradhan Mantri Vaya Vandana Yojana (PMVVY).

In  addition,  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  (PMKiSaN)' a new Central Sector Scheme, which will be 100% funded by the Government of India.

Under the  Scheme, financial benefit  of  Rs.  6000/-  per  year  will  be  provided  to  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. Thus, a farmer, irrespective of age can avail this benefit of income support provided  that  his/her  family  is  of  small  and  marginal  category  and  eligible  as  per  the  scheme guidelines.

(d) & (e): No Madam. However, there are instructions to lending institutions for restricting the loans in case of natural calamities, in line with the National Disaster Management Framework.