Lok Sabha Question No. 834 (UNSTARRED), answered on 2023-02-07
Subject: Agriculture Reform
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Gautham Sigamani Pon, Manne Srinivas Reddy, Komati Reddy Venkat Reddy

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

## LOK SABHA

## UNSTARRED QUESTION NO.834

TO BE ANSWERED ON THE7 TH  FEBRUARY, 2023

## AGRICULTURE REFORM

834. DR. PON GAUTHAM SIGAMANI: SHRI MANNE SRINIVAS REDDY: SHRI KOMATI REDDY VENKAT REDDY:

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

(a) whether farm sector reforms are still incomplete in the country;

(b)  if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  corrective  steps  being taken in future;

(c)  whether  it  is  a  fact  that  the  country  would  not  be  able  to  reform  agriculture  until  it  had modern land systems and land records;

(d)  whether it  is  also  true  that  the  reform  agenda  for agriculture  has  not  only  been  pending since 1991, it is pending even today; and

(e)  whether  it  is  also  true  that  to  transform  agriculture,  farmers  must  be  freed  from  State intervention and if so, the details thereof?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) to (e): Agriculture  being  a  State  Subject,  the  States  take  effective  measures  for promotion and reforms of State specific issues relating to agriculture. However, Government of India  supplements the efforts of States through appropriate policy measures and budgetary support  and  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. Due to these interventions agricultural output  is  steadily  increasing  over  the  years.  In  2021-22  there  was  a  record  production  of foodgrains 315.72 MT and horticultural crops 342.33 MT. The Department of Land Resources is  also  implementing  a  programme  for  modernization  and  computerization  of  land  records across the country.

The  Government  has  adopted/  implemented  several  developmental  programmes, schemes, reforms and policies for achieving higher incomes for the farmers. These include:

## 1. Unprecedented enhancement in budget allocation

In  the  year  2013-14  the  budget  allocation  of  Ministry  of  Agriculture  (including  DARE)  and Ministry  of  Fisheries,  Animal  Husbandry  &  Dairying  was  only  30223.88  crore.  This  has increased by more than 4.59 time to Rs. 138920.93 crore in 2022-23.

## 2. Income support to farmers through PM KISAN

Launch of PM-KISAN in 2019 -an income support scheme providing Rs. 6000 per year in 3 equal installments. More than Rs . 2.24 lakh crore has been released so far to more than 11 crore farmers as of now.

## 3. Pradhan Mantri Fasal BimaYojana (PMFBY)

Six  year  -  PMFBY  was  launched  in  2016  addressing  problems  of  high  premium  rates  for farmers and reduction in sum insured due to capping. In past 6 Years of implementation - 38 crore  farmer  applications  has  been  enrolled  and  over  12.37  crore  (Provisional)  farmer applicants  have  received  claims.  During  this  period  nearly  Rs.  25,252  crore  were  paid  by farmers  as  their  share  of  premium  against  which  claims  of  over  Rs.  1,30,015  crore (Provisional) have been paid to them. Thus for every 100 rupees of premium paid by farmers, they have received about Rs. 514 as claims.

## 4. Institutional credit for agriculture sector

- i. Increased from Rs. 7.3 lakh crore in 2013-14 with a target to reach Rs. 18.5 lakh crore in 2022-23.
- ii. Benefit of concessional institutional credit through KCC at 4% interest per annum has also now been extended to Animal Husbandry and Fisheries farmers for meeting their short-term working capital needs.
- iii. A  special  drive  has  been  undertaken  since  February  2020  to  provide  concessional institutional  credit  with  focus  on  covering  all  PM-KISAN  beneficiaries  through  Kisan Credit Cards (KCC). As on 23.12.2022, 387.87 lakh new KCC applications have been sanctioned with a sanctioned credit limit of Rs. 4,49,443 crore as part of the drive.

## 5. Fixing  of  Minimum  Support  Price  (MSP)  at  one-and-a  half  times  the  cost  of production -

- i. Government  has  increased  the  MSP  for all mandated  Kharif, Rabi and  other commercial crops with a return of at least 50 per cent over all India weighted average cost of production from 2018-19.
- ii. MSP for Paddy (common) has increased to Rs. 2040 per quintal in 2022-23 from Rs. 1310 per quintal in 2013-14.
- iii. MSP for Wheat increased from Rs. 1400 per quintal in 2013-14 to Rs. 2125 per quintal in 2022-23.

## 6. Promotion of organic farming in the country

- i. Paramparagat Krishi Vikas Yojana (PKVY) was initiated in 2015-16 to promote organic farming  in  the  country.  32384  clusters  have  been  formed  and  an  area  of  6.53  lakh hectare has been covered benefitting 16.19 lakh farmers. In addition, Under Namami Gange Programme 123620 hectare area covered and under natural farming 4.09 lakh hectare  area  covered.  Farmers  in  Uttar  Pradesh,  Uttarakhand,  Bihar  and  Jharkhand have taken-up organic farming on either side of the river Ganga to control river water pollution as well as to fetch additional income to farmers.
- ii. Government also proposes to promote sustainable natural farming systems through the scheme  Bhartiya  Prakratik  Krishi  Padhati  (BPKP).  The  proposed  scheme  aims  at cutting  down  cost  of  cultivation,  enhancing  farmer's  income  and  ensuring  resource conservation and, safe and healthy soils, environment and food.
- iii. Mission  Organic  Value  Chain  Development  in  North  East  Region  (MOVCDNER)  has been  launched.  379  Farmer  Producer  Companies  have  been  formed  comprising  of 189039 farmers and covering 172966 hectare area.

## 7. Per Drop More Crop

Per Drop More Crop (PDMC) scheme was launched in the year 2015-16 which aims to increase water use efficiency, reducing cost of inputs and increasing productivity at the farm level through Micro Irrigation technologies i.e. drip and sprinkler irrigation systems. So far, an area of 69.55 lakh hectare has been covered under Micro irrigation through the PDMC scheme from the year 2015-16.

## 8. Micro Irrigation Fund

A Micro Irrigation Fund of initial corpus Rs 5000 crore has been created with NABARD.  In the Budget Announcement for 2021-22, the corpus of  the  fund  is  to  be  increased  to  Rs.10000 crores. Projects worth Rs 4710.96 crore covering 17.09 lakh hectares have been approved.

## 9. Promotion of Farmer Producer Organisations (FPOs)

- i. A new Central Sector Scheme for Formation & Promotion of new 10,000 FPOs launched by Hon'ble Prime Minister on 29 th February, 2020 with budget outlay of Rs 6865 Crore till 2027-28.
- ii. As on 30.11.2022, 4028 no. of FPOs have been registered under new FPO scheme.
- iii. Equity Grant of Rs. 53.4 Crore has been released to 1415 FPOs as on 30.11.2022.
- iv. As on 12.12.2022, Credit Guarantee Cover worth Rs. 78 Cr. Issued to 447 FPOs.

10. A National Beekeeping and Honey Mission (NBHM) has been launched in 2020 as part of  the  Atma  Nirbhar  Bharat  Abhiyan  to  increase  productivity  of  crops  through  pollination  and increase in  honey production as an additional source of income. Rs. 500 crore for the period 2020-2021 to 2022-2023 has been allocated for beekeeping sector. 114 projects for assistance of about Rs. 139.23 crores, approved/ sanctioned for funding under NBHM during 2020-21 & 2021-22 till date.

## 11. Agricultural Mechanization

Agricultural mechanization is an extremely vital to modernize agriculture and reduce drudgery of  farming  operations.  During  the  period  from  2014-15  to March,  2022  an  amount  of Rs.5490.82 crore have been allocated for agricultural mechanization. 13,88,314 numbers of machines and equipments have been provided to farmers on subsidy basis.   18,824 custom hiring centers, 403 high-tech hubs and 16,791 farm machinery banks have been established to make available agricultural machines and equipments to the farmers on rental basis. During the current year i.e. 2022-23, so far an amount of Rs. 504.43 crores have been released for distribution of around 65302 machines on subsidy, establishment of 2804 CHCs, 12 Hi-tech hubs and 1260 Village Level Farm Machinery Banks.

## 12. Providing Soil Health Cards to farmers

Soil Health Card Scheme was introduced in the year 2014-15 to optimize usage of nutrients. The following numbers of cards have been issued to farmers;

- i. Cycle-I (2015 to 2017) - 10.74 crore
- ii. Cycle-II (2017 to 2019)- 12.19 crore
- iii. Model Village Programme (2019-20)- 23.71 lakh
- iv. In the year 2020-21- 11.52 lakh

## 13. Setting up of National Agriculture Market ( e-NAM) extension Platform

- i. 1260 mandis of 22 States and 03 UTs have been integrated to e-NAM platform.
- ii. As  on  29.11.2022,  more  than  1.74  Crore  Farmers  &  2.37  Lakh  traders  have  been registered on e-NAM portal.
- iii. Total volume of 6.8 Crore MT & 20.05 Crore numbers (bamboo, betel leaves, coconut, lemon & sweet corn) collectively worth approximately Rs. 2.33 lakh crore of trade has been recorded on e-NAM platform as on 29.11.2022.
- iv. As on 01.12.2022, 203 Agriculture and allied products Tradable Parameter have been formulated for Assaying on e-NAM platform
14. Launch  of  the  National  Mission  for  Edible  Oils  -  Oil  Palm  NMEO  has  been approved with a total outlay of Rs 11,040 crore. This will bring an additional area of 6.5 lakh hectare under Oil Palm plantation with 3.28 lakh hectare in the north-eastern states and 3.22 lakh  hectare  in  the  rest  of  India  in  the  next  5  years.  The  major  focus  of  the  Mission  is  to provide  Viability  Prices  of  fresh  fruit  bunches  (FFBs)  to  the  farmers  linked  with  assured procurement by industry with a simpler price fixing formula.

## 15. Agri Infrastructure Fund (AIF)

Since inception of AIF in the year 2020, the scheme has sanctioned an amount of Rs.14170 crore worth agriculture infrastructure in the country for 19191 projects. With the support of the scheme, various agriculture infrastructures were created and some of the infrastructure are at the final  stage of completion. These infrastructures include 8215 warehouses, 3076 primary processing  units,  2123  custom  hiring  centres,  992  sorting  &  grading  units,  728  cold  store projects,  163  assaying  units  and  around  3632  other  kinds  of  post-harvest  management projects and community farming assets.

## 16. Improvement in farm produce logistics, Introduction of Kisan Rail.

Kisan  Rail  has  been  launched  by  Ministry  of  Railways  to  exclusively  cater  to  movement  of perishable agrihorti commodities. First Kisan Rail was started in July 2020. Till 31 st  December, 2022, 2359 services on 167 routes have been operated.

## 17. MIDH - Cluster Development Programme:

The Cluster Development Programme (CDP) is designed to leverage geographical specialisation of horticulture clusters and promote integrated and market-led development of pre-production, production, post-harvest, logistics, branding, and marketing activities. DA&FW has identified 55 horticulture clusters, of which 12 have been selected for the pilot phase of the CDP.

## 18. Creation of a Start-up Eco system in agriculture and allied sector

So far, 1102 Startups during FY 2019-20 to 2022-23 have been finally selected by different knowledge partners and agribusiness incubators of DA&FW. A total of Rs. 66.83 crore grantsin-aidhas been released for funding to these Startups to the respective Knowledge Partners (KPs)  &  RKVY  RAFTAAR  Agri  Business  Incubator  (R-ABIs)  as  grants-in-aid  support  by DA&FW.

## 19. Achievement in Export of Agri and Allied Agri- Commodities

The  country  has  witnessed  emphatic  growth  in  export  of  agri  and  allied  commodities.  As compared to previous year 2020-21, the Agri and allied export has increased from 41.86 billion USD in 2020-21 to 50.24 billion USD in 2021-22 i.e. an increase of 19.99%.

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