Lok Sabha Question No. 2663 (UNSTARRED), answered on 2021-12-14
Subject: Agrarian Reforms
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ramya  Haridas

## GOVERNMENT OF IDNIA MINISTRY O1F AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 2663

TO BE ANSWERED ON THE 14 th  DECEMBER, 2021

## AGRARIAN REFORMS

2663.  MS. RAMYA HARIDAS:

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

- (a) whether the Government has made any agrarian reforms in the country during the last three years, if so, the details thereof;
- (b) whether it is a fact that the average agricultural growth of the country has come down drastically during the last three years;
- (c) if so, whether it is also a fact that low farm produce prices have led to widespread rural distress and debt of farmers are fuelling farmer protests across the country; and
- (d) if so, the action taken by Government in this regard?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a): 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. A list of various initiatives taken by the Government is at Annexure.

The  Government  has  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  package'  which  includes  comprehensive  market  reforms  and creation of 'Agricultural Infrastructure Fund (AIF)' worth Rs. 1 lakh crore.

(b) to (d): During the last three years, the growth rate of Gross Value Added (GVA) of agriculture and allied sector (as per the figures released by National Statistics office) from 2018-19 to 2020-21 are as follows:

| Year      |   Growth rate of GVA of agriculture & allied sector (at 2011-12 prices) |
|-----------|-------------------------------------------------------------------------|
| 2018-19#  |                                                                     2.6 |
| 2019-20@  |                                                                     4.3 |
| 2020-21** |                                                                     3.6 |

#Second revised estimate.

@First revised estimates released on 29 th January, 2021.

**As  per  provisional  estimates  of  Annual  National  Income,  2020-21  released  on  31 st May, 2021.

The  prices  of  agricultural  produce  are  determined  by  supply  and  demand conditions  in  the  market  on  a  day-to-day  basis.  Apart  from  demand  and  supply conditions, quality of produce, weather condition, seasonality, availability of stocks and international prices are also affecting the prices of agricultural produce.

The  Government  has  taken  a  number  of  steps  to  improve  post  harvest infrastructure  such  as  cold  storages,  warehouses,  efficient  supply  chains  etc.  under various schemes such as Mission for Integrated Development of Horticulture (MIDH), Rashtriya  Krishi  Vikas  Yojana  -  Remunerative  Approaches  for  Agriculture  and  Allied sector Rejuvenation (RKVY  RAFTAAR),  Agriculture Infrastructure  Fund (AIF), Agricultural Marketing Infrastructure (AMI) and Pradhan Mantri Krishi SAMPADA Yojana (PMKSY).  Further,  in  order  to  prevent  farmers  from  distress  sales  a  2%  interest subvention has been extended to small and marginal formers having Kisan Credit Card (KCC)  on  post  harvest  loans  against  negotiable  warehouses  receipts  (NWRs)  at  the same rate as applicable to crop loans for a period upto 6 months post harvest.

## 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 '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) 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.

(xiii) 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.

(xiv) 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.

(xv) Government  has launched a Central Sector Scheme  of 'Formation and Promotion of 10,000 Farmers Produce Organization (FPOs)' for raising the income of farmers in the country, under which professional handholding support is to be provided for  a  period  of  five  years  to  the  new  FPOs  formed  under  the  scheme.  Provision  of financial assistance to the tune of Rs.18 lakhs to each FPOs under the scheme towards establishment cost for 3 years has been made.

(xvi) Creation of Corpus Funds a. Micro Irrigation Fund - Rs. 10,000 crore

b. Agricultural Infrastructure Fund (AIF) to build agri-logistics (backward & forward linkages) - Rs. 100,000 crore including Rs 500 crores for Bee-keeping

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