Lok Sabha Question No. 2528 (UNSTARRED), answered on 2021-03-09
Subject: Agricultural Taxation
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Thomas Chazhikadan

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

## LOK SABHA UNSTARRED QUESTION NO. 2528

TO BE ANSWERED ON THE 9 TH  MARCH, 2021

## AGRICULTURAL TAXATION

2528. SHRI THOMAS CHAZHIKADAN:

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

- (a) whether the Government is aware that as per the ICRIER- OECD report the Indian farmer is net taxed because of the basic infrastructure deficit in the agricultural sector; and
- (b) if so, the details thereof and the steps taken by the Government to redress the situation?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) & (b): The conclusion  derived  in  the  study  conducted  by  ICRIER-OECD  in 2018, in the report titled 'Agriculture Policy Review of India', is based on a specific methodology adopted by the OECD.

The Government has however, adopted several developmental programmes, schemes,  reforms  and  policies  that  focus  on  higher  incomes  for  the  farmers.  All these policies & programmes are being supported by higher budgetary allocations, non-budgetary financial resources by way of creating Corpus Funds and supplementary  income  transfers  under  PM-KISAN.  The  latest  major  intervention includes  the  'Atma  Nirbhar  Bharat  -  Agriculture'  which  includes  comprehensive market  reforms  and  creating  of  'Agricultural  Infrastructure  Fund  (AIF)'.  In  2021-22 Budget  Announcements,  Micro  Irrigation  Fund  has  been  doubled  and  Institutional Credit has also been increased. A list of various interventions and schemes launched for the benefit of farmers is annexed .

## 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 (PMKISAN). 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  'HarMedh  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, Rs.15.00 lakh crore for F.Y. 2020-21 and Rs 16.50 lakh crore for FY 2021-22.
- (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.
- (xvi) Several market reforms have been rolled out. These include
- a. Model APLMC (Promotion & Facilitation) Act, 2017
- b. Establishment of 22,000 number of Gramin Agriculture Markets (GrAMs) as aggregation platforms
- c. Agri-Export Policy, that targets to double agri-exports by 2022
- d. The Farmers Produce Trade and Commerce (Promotion & Facilitation) Act., 2020
- e. The Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Act.,  2020
- f. Amendments  to  Essential  Commodities  Act,  1955,  that  deregulates various agri-commodities
- g. Promotion of 10,000 FPOs by 2024

(xvii) Creation of Corpus Funds

- a. Micro Irrigation Fund - Rs. 10,000 crore
- b. Agri-marketing Fund to strengthen eNAM and GrAMs - Rs. 2,000 crore
- c. Agricultural Infrastructure Fund (AIF) to build agri-logistics (backward & forward linkages) - Rs. 100,000 crore including Rs 500 crores for Beekeeping

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