Lok Sabha Question No. 295 (UNSTARRED), answered on 2021-07-20
Subject: Doubling Farmers Income in Maharashtra
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Vinayak Bhaurao Raut

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

## LOK SABHA UNSTARRED QUESTION NO.  295

TO BE ANSWERED ON THE 20 TH  JULY, 2021

## DOUBLING FARMERS INCOME IN MAHARASHTRA

295:   SHRI VINAYAK RAUT:

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

- (a) the  details  of  the  steps  taken  to  double  farmers'  income  by  2022  and  the funds allocated for the same during the last five years, scheme-wise for the State of Maharashtra;
- (b) the current growth rate of the agriculture sector;
- (c) the percentage of growth rate of agriculture sector which has to be achieved in order to double the farmers' income; and
- (d) the  steps  taken  by  the  Government  to  achieve  the  said  growth  rate  for  the agriculture sector?

## ANSWER

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

- (a)  to  (d):  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  like Micro Irrigation Fund and Agri-marketing scheme to strengthen eNAM and GrAMs, as also in  the  Ministry  of  Fisheries,  Animal  Husbandry  and  Dairying  to  promote  dairy  and fishery sectors. There have been several reforms to unleash the potential and these include  Market  Reforms  like  Model  APLMC  (Promotion  &  Facilitation)  Act,  2017; Establishment of Gramin Agriculture Markets (GrAMs); Agri-Export Policy, 2018; The Farmers Produce Trade  and Commerce (Promotion &  Facilitation)  Act,  2020;  The

Farmers  (Empowerment  &  Protection)  Agreement  on  Price  Assurance  and  Farm Services Act.  2020; Amendments to Essential Commodities Act, 1955; Promotion of 10,000  FPOs  with  necessary  financial  support  under  Atma  Nirbhar  Package (Agriculture)and Supplementary Income transfers under PM-KISAN; Pradhan Mantri Fasal  Bima  Yojna    (PMFBY);    Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY); Increase in Minimum Support Price (MSPs) for all Kharif & Rabi Crops ensuring a minimum of 50 percent of profit margin on the cost of production; Har Med Par Ped; Bee-Keeping; Rashtriya Gokul Mission; Blue Revolution; Interest Subvention Scheme; Kisan Credit Card (KCC) that now offers production loan to even dairy & fishery  farmers  besides  agricultural  crops  etc.   A  list  of  interventions  and  scheme launched for the benefit of farmer is at Annexure-I .

The  funds  allocated  scheme-wise  for  the  State  of  Maharashtra  during  FY 2016-17 to FY 2020-21 is at Annexure-II .

The Growth rate of Gross Value Added (GVA) of Agriculture & Allied Sector (at Current Prices) is 6.6%, as per Provisional Estimates of Annual National Income, 2020-21, released on 31 st May, 2021 by National Statistical Office (NSO).

The last Situation Assessment Survey was conducted by NSSO in 2012-13.

## Annexure-I

## 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)  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

## Annexure-II

## The funds allocated  scheme-wise for the State of Maharashtra during 2016-17 to 2020-21

| Sl. No.                               | YEAR 2016-17   | YEAR 2017-18   | YEAR 2018-19   | YEAR 2019-20   | YEAR 2020-21   |
|---------------------------------------|----------------|----------------|----------------|----------------|----------------|
|                                       | Allocation     | Allocation     | Allocation     | Allocation     | Allocation     |
| NFSM                                  | 198.01         | 161.28         | 155.9          | 142.04         | 153.363        |
| Per Drop More Crop component of PMKSY | 347            | 475            | 480            | 325            | 400            |
| NFSM (OS&OP)                          | 59.3401        | 48.1045        | 48.56          | 32.3182        | 39.3782        |
| SMAM                                  | 15             | 34.13          | 151.71         | 77.92          | 77.92          |
| SHM                                   | 25.734         | 0.9            | 15.6812        | 0              | 0.459          |
| SHC                                   | 24.3013        | 21.1241        | 31.2042        | 8.5469         | 5.6925         |
| Rashtriya Krishi Vikas Yojana         | 396.29         | 419.6211       | 247.7764       | 261.7599       | 290.88         |
| ATMA                                  | 8.0672         | 9.617          | 9.4852         | 13             | 17.411         |
| RAD                                   | 30             | 25             | 25             | 26             | 19             |
| MIDH                                  | 88.97          | 108.97         | 158            | 158            | 130            |
| SMAF                                  | 0              | 8              | 4              | 1.5            | 2              |
| PKVY                                  | 28.1645        | 30.3179        | 251.6          | 16.9201        | 13.0038        |

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