Lok Sabha Question No. 773 (UNSTARRED), answered on 2023-02-07
Subject: Reducing Agriculture Cost
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sanjay Haribhau Jadhav, Keshari Devi Patel, Arvind Ganpat Sawant, Vinayak Bhaurao Raut

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

## LOK SABHA

## UNSTARRED QUESTION NO. 773

TO BE ANSWERED ON 7 TH  FEBRUARY, 2023

## REDUCING AGRICULTURE COST

773.   SHRI SANJAY JADHAV: SHRI ARVIND GANPAT SAWANT: SHRI VINAYAK RAUT: SHRIMATI KESHARI DEVI PATEL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ षि एवं षकसान कल्याण मंत्री be pleased to State?

(a) the details of schemes being implemented by the Government to reduce the agriculture cost;

- (b)  the budget allocated for the said schemes and the amount spent thereon during the last five years;
- (c)  the  number  of  farmers  who  have  been  benefited  therefrom  with  the  details  thereof especially the status of Maharashtra and Uttar Pradesh in this regard; and

(d) the details of the reduction in per hectare agriculture cost due to the implementation of these schemes and the quantum of increase in farmers' income during the last five years?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ षि एवं षकसान कल्याण मंत्री (SHRI NARENDRA SINGH TOMAR)

- (a) & (c) Department of Agriculture and Farmers Welfare is implementing various Central Sector as well as Centrally Sponsored Schemes for the development of agriculture as well as welfare of farmers. Details of the schemes which enable reduction in cost of cultivation, directly or indirectly are given at Annexure-I.
- (b) A  statement on the amount allocated and spent thereon during the last five years is given as Annexure-II.
- (d) A comprehensive evaluation study on cost reduction is not available. Latest available estimates on income of agricultural household are based on the Situation Assessment Survey  of  Agricultural  Households  conducted  by  National  Sample  Survey  Office (NSSO).  Last  two  Surveys  are  available  for  the  Agricultural  years  July  2012-  June 2013  and  July  2018-  June  2019.  During  this  period  all  India  average  monthly agriculture household income increased from Rs 6426 to Rs 10218.

Annexure -I Details  of  schemes  implemented  by  the  Department  of  Agriculture  &  Farmers  Welfare which assist reduction in cost of cultivation.

|   Sl No | Name of the Scheme               | Name of the Scheme   | Purpose                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | Modified Subvention (MISS)       | Interest Scheme      | The Interest Subvention Scheme (ISS) provides concessional short term agri-loans to the farmers practicing crop husbandry and other allied activities like animal husbandry, dairying and fisheries. ISS is available to farmers availing short term crop loans upto Rs.3.00 lakh at an interest rate of 7% per annum for one year. Additional 3% subvention is also given to the farmers for prompt and timely repayment of loans thus reducing the effective rate of interest to 4% per annum. The benefit of MISS is also available for post-harvest loans against Negotiable Warehouse Receipts (NWRs) on crop loans for a further period of six months post-harvest to small and marginal farmers having Kisan Credit Cards (KCCs), on occurrence of natural calamities and severe natural calamities. Under KCC saturation drive announced in 2020, 394.80 lakh new KCC applications have been sanctioned in the country. Out of which 55.55 lakh applications are sanctioned in Maharashtra and 55.80 lakh applications are sanctioned in Uttar Pradesh.                                                                                |
|       2 | Agriculture Infrastructure (AIF) | Fund                 | In order to address the existing infrastructure gaps and mobilize investment in agriculture infrastructure, Agri Infra Fund was launched under Aatmanirbhar Bharat Package. AIF was introduced with a vision to transform the agriculture infrastructure landscape of the country. The Agriculture Infrastructure Fund is a medium - long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee support. The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020-21 to FY2025-26 and the support under the scheme will be provided for the duration of FY2020-21 to FY2032-33. Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to Rs. 2 Crores. Further, each entity is eligible to get the benefit of the scheme for up to 25 projects located in different LGD codes. |

|    |                                          | Eligible beneficiaries include Farmers, Agri-entrepreneurs, Start-ups, Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group (SHG), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Central/State agency or Local Body sponsored Public Private Partnership Projects, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs (Farmer Produce Organizations) and Federations of Self Help Groups (SHGs). As on 24 th January 2023, Rs. 15,253 Crores have been sanctioned for 20659 projects. These sanctioned projects have mobilized an investment of Rs. 30990 crores in agriculture sector. Major projects sanctioned under AIF include 8559 warehouses, 3671 primary processing units, 2420 custom hiring centres, 1114 sorting & grading units, 812 cold store projects, 163 assaying units and around 3920 other kinds of post-harvest management projects and community farming assets.                                                                                                                                                                                                                                    |
|----|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3 | Formation & Promotion of new 10,000 FPOs | The Government of India has launched the Central Sector Scheme (CSS) for 'Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)' in the year 2020. The scheme has a total budgetary outlay of Rs.6865 crores. Formation & promotion of FPOs are to be done through Implementing Agencies (IAs), which further engage Cluster Based Business Organizations (CBBOs) to form & provide professional handholding support to FPOs for a period of 5 years. FPOs get a financial assistance upto Rs 18.00 lakh per FPO for a period of 03 years. In addition to this, provision has been made for matching equity grant upto Rs. 2,000 per farmer member of FPO with a limit of Rs. 15.00 lakh per FPO and a credit guarantee facility upto Rs. 2 crore of project loan per FPO from eligible lending institution to ensure institutional credit accessibility to FPOs. Suitable provisions have been made for training and skill development of FPOs. Further, FPOs are onboarded on National Agriculture Market (e-NAM) platform which facilitate online trading of their agricultural commodities through transparent price discovery method to enable FPOs to realize better remunerative prices for their produce. Total 4028 FPOs were registered under the scheme in the country since 2019. |

|    |                                                 | In Maharashtra, 322 FPOs were registered under this scheme during this period. In Uttar Pradesh, 480 FPOs were registered under this scheme during this period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----|-------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  4 | Per Drop More Crop (PDMC)                       | Per Drop More Crop scheme mainly focuses on water use efficiency at farm level through precision/micro irrigation. Besides promoting precision irrigation (drip and sprinkler irrigation systems) and better on-farm water management practices to optimize the use of available water resources, this component also supports micro level water storage or water conservation/management activities to supplement micro irrigation. Total 53.52 lakh farmers were benefitted under micro irrigation under PDMC since 2017-18. During this period, 843970 farmers were benefitted in Maharashtra and 181318 farmers were benefitted in Uttar Pradesh under PDMC .                                                                                                                                                                                                                                           |
|  5 | Sub-Mission on Agriculture Extension (SMAE)     | The scheme aims at making the extension system farmer driven and farmer accountable by disseminating technology to farmers through new institutional arrangements viz. Agricultural Technology Management Agency (ATMA) at district level to operationalize extension reforms in a participatory mode. Under ATMA, 21308971 farmers have been benefitted since 2017-18, out of which 2121653 farmers are from                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|  6 | Sub-Mission on Agriculture Mechanization (SMAM) | Sub Mission on Agricultural Mechanization (SMAM) is being implemented w.e.f April, 2014 which aims at catalyzing an accelerated but inclusive growth of agricultural mechanization in India with the objectives of Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low, Promoting 'Custom Hiring Centres' to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership, Creating hubs for hi-tech& high value farm equipments, Creating awareness among stakeholders through demonstration and capacity building activities and Ensuring performance testing and certification at designated testing centers located all over the country. Under the scheme, 1145786 farmers have been benefitted since 2017-18 In Maharashtra, 52995 farmers have been benefitted under |

|    |                                                  | the scheme during this period. In Uttar Pradesh, 91347 farmers have been benefitted under the scheme during this period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  7 | Sub-Mission on Seed and Planting Material (SMSP) | SMSP covers the entire gamut of seed production chain, from production of nucleus seed to supply of certified seeds to the farmers, to provide support for creation of infrastructure conducive for development of the seed sector, support to the public seed producing organisations for improving their capacity and quality of seed production, create dedicated seed bank to meet unforeseen circumstances of natural calamities, etc. Under the scheme 1,73,97,186 farmers have been benefitted in the country since 2017-18. In Maharashtra 27,57,172 farmers have been benefitted since 2017-18. In Uttar Pradesh 9,41,559 farmers have been benefitted since 2017-18. |
|  8 | ParamparagatKrishiVi kasYojana (PKVY)            | Paramparagat Krishi Vikas Yojana (PKVY) aims at development of sustainable models of organic farming through a mix of traditional wisdom and modern science to ensure long term soil fertility build-up, resource conservation and helps in climate change adaptation and mitigation. It primarily aims to increase soil fertility and thereby helps in production of healthy food through organic practices without the use of agro-chemicals. During Phase II (Since 2018-19 to as on date), 10.25 lakh farmers have benefitted by the scheme. In Maharashtra, 17500 farmers and 25000 farmers in Uttar Pradesh have been under PKVY during the period.                      |
|  9 | National Food Security Mission (NFSM)            | The Mission aims at increasing production of rice, wheat, pulses coarse cereals (maize & barley), nutri-cereals (jowar, bajra, ragi& other small millets) and commercial crops (jute, cotton & sugarcane) and oilseeds through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. Since 2017-18, 21.75 lakh farmers have been benefitted under the scheme. During the period, in Maharashtra, 604107 farmers were benefitted under the scheme. During the period, in Uttar Pradesh, 81677 farmers were benefitted under the scheme.                                                                               |

|   10 | Integrated Scheme for Agriculture Marketing (ISAM)                | ISAM supports state governments in governing the agricultural produce marketing through creation and improvement of market structures, capacity building and generating access to market information. During 2017-18, National Agriculture Market Scheme popularly known as e- NAM scheme has also been made part of the same.1260 mandis of 22 States and 03 UTs have been integrated to e- NAM platform. In Maharashtra, 118 mandis and in Uttar Pradesh 125 mandis have been integrated with e-NAM platform so far.                                                                                                                                                          |
|------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   11 | Mission for Integrated Development of Horticulture (MIDH)         | Mission for Integrated Development of Horticulture (MIDH), a Centrally Sponsored Scheme was launched during 2014-15 for holistic growth of the horticulture sector covering fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa and Bamboo. Since 2017-18, 31.67 lakh farmers have been benefitted in the country under the scheme. Under the scheme, in Maharashtra, 83103 farmers were benefitted during this period. Under the scheme, in Uttar Pradesh, 77316 farmers were benefitted during this period.                                                                                                         |
|   12 | National Food Security Mission- Oilseeds and Oilpalm (NFSM-OS&OP) | The main objective of NFSM-OS&OP is to augment the availability of vegetable Oils and to reduce the import of edible oils by increasing the production and productivity of Oilseeds and increase the area under Oil Palm & Tree borne Oilseeds. Now a separate Mission for Oil Palm has been launched as NMEO-OP IN 2021-22. Total number of farmers benefitted under NFSM-Oilseeds since 2017-18 is 211220 in Uttar Pradesh.                                                                                                                                                                                                                                                   |
|   13 | Soil Health Card (SHC)                                            | Soil Health Card is used to assess the current status of soil health and, when used over time, to determine changes in soil health that are affected by land management. A Soil Health Card displays soil health indicators and associated descriptive terms. The indicators are typically based on farmers' practical experience and knowledge of local natural resources. The card lists soil health indicators that can be assessed without the aid of technical or laboratory equipment. Since 2017-18, 12.54 crore farmers have been benefitted in the country under the scheme. Under the scheme, in Maharashtra, 132.69 lakh farmers were benefitted during this period. |

|    |                                      | Under the scheme, in Uttar Pradesh, 206.37 lakh farmers were benefitted during this period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|----|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14 | Rashtriya Krishi Vikas Yojana (RKVY) | The scheme focuses on creation of pre & post-harvest infrastructure in agriculture and allied sectors that help in supply of quality inputs, market facilities, etc to farmers. It provides flexibility and autonomy to states to implement projects as per the local farmers needs and priorities from a bouquet of activities in agriculture and allied sectors. The scheme aims to fill the resources gap of agriculture and allied sectors by providing financial support to states for undertaking various activities to increase in overall growth of agriculture and allied sectors and farmers income. Allocation for the scheme during 2022-23 is Rs 3031.08 crore. During 2022-23 Rs 229.77 crore have been allocated to the state of Maharashtra. During 2022-23 Rs 225.27 crore have been allocated to the state of Uttar Pradesh. |

## Annexure II

Details of funds allocated and spent under beneficiary oriented schemes implemented by DA&FW during last five years Rs. in Crore

| S. No.   | Name of Mission/Scheme                                                                           | 2017-18    | 2017-18   | 2018-19    | 2018-19   | 2019-20    | 2019-20   | 2020-21    | 2020-21   | 2021-22    | 2021-22   |
|----------|--------------------------------------------------------------------------------------------------|------------|-----------|------------|-----------|------------|-----------|------------|-----------|------------|-----------|
| S. No.   | Name of Mission/Scheme                                                                           | Allocation | Release   | Allocation | Release   | Allocation | Release   | Allocation | Release   | Allocation | Release   |
| 1.       | Interest Subsidy for Short Term Credit to Farmers                                                | 15000.00   | 13045.72  | 15000.00   | 11495.66  | 18000.00   | 16218.74  | 21175.00   | 14161.48  | 19468.31   | 21476.93  |
| 2.       | *Agriculture Infrastructure Fund                                                                 |            |           |            |           |            |           | 208        | 21.87     | 900        | 21.43     |
| 3.       | Pradhan Mantri Krishi Sinchai Yojna-Per Drop More Crop (PMKSY)                                   | 3400.00    | 2819.24   | 4000.00    | 2918.37   | 3500.00    | 2700.04   | 4000.00    | 2562.17   | 4000.00    | 1796.12   |
| 4.       | Rastriya Krishi Vikas Yojna                                                                      | 4750.00    | 3559.74   | 3600.00    | 3370.38   | 3745.00    | 3085.44   | 3700.00    | 2561.25   | 3712.44    | 1729.11   |
| 5.       | National Food Security Mission                                                                   | 1720.00    | 1377.12   | 1690.70    | 1605.78   | 2000.00    | 1768.52   | 2100.00    | 1675.23   | 2096.00    | 995.17    |
| 6.       | Oilseeds and Oilpalm                                                                             | 430.56     | 182.52    | 456.81     | 242.54    | 332.92     | 213.7     | 536.67     | 371.01    | 448.27     | 140.63    |
| 7.       | National Project on Management of Soil Health & Fertility                                        | 452.00     | 194.88    | 400.00     | 313.63    | 324.20     | 159.22    | 315.00     | 200.24    | 315.00     | 8.76      |
| 8.       | Paramparagat Krishi Vikas Yojna                                                                  | 350.00     | 203.46    | 360.00     | 328.69    | 325.00     | 283.66    | 500.00     | 381.05    | 450.00     | 88.57     |
| 9.       | Mission for Integrated Development of Horticulture including National Bee & Honey Mission (NBHM) | 2320.00    | 2026.92   | 2536.00    | 1996.84   | 2225.00    | 1331.28   | 2300.00    | 1423.34   | 2385.00    | 994.83    |
| 10.      | Sub-Mission Seeds & Planting Material                                                            | 200.00     | 423.54    | 332.00     | 332.51    | 380.13     | 283.63    | 378.77     | 256.62    | 448.00     | 141.05    |
| 11.      | Sub-Mission on Agriculture Extension                                                             | 912.00     | 818.81    | 1020.00    | 890.60    | 950.00     | 931.70    | 1200.00    | 886.33    | 1173.75    | 820.98    |
| 12.      | Sub-Mission on Agricultural Mechanization                                                        | 550.00     | 764.41    | 1165.29    | 1100.70   | 1000.00    | 964.80    | 1000.00    | 999.70    | 1050.00    | 816.55    |
| 13.      | Integrated scheme on Agricultural Marketing                                                      | 1190.00    | 589.69    | 1050.00    | 458.19    | 600.00     | 272.55    | 490.00     | 237.80    | 410.00     | 238.28    |
| 14.      | *Formation and Promotion of Farmers Producers Organizations                                      |            |           |            |           |            |           | 500        | 240.83    | 700        | 427.04    |

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