Lok Sabha Question No. 5448 (UNSTARRED), answered on 2022-04-05
Subject: Risk in Agriculture
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: S. Jagathrakshakan

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

## LOK  SABHA UNSTARRED QUESTION NO. 5448

TO BE ANSWERED ON 05 TH  APRIL, 2022

## RISK IN AGRICULTURE

5448.    SHRI S. JAGATHRAKSHAKAN :

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

- (a) whether the Government agrees with the view that agriculture is risky profession as there are many variables;
- (b)  if  so,  the  steps  taken/proposed  to  be  taken  by  the  Government  to  lower  the  risk  in agriculture and benefit the small farmers; and
- (c) if not, the reasons therefor?

## ANSWER

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

- (a)  to  (c)  Agriculture  plays  a  vital  role  in  India's  economy.  As  in  other  Sectors,  Agriculture Sector also has certain risk factors relating to vagaries of rainfall, floods, draught, spread of diseases and pests, soil salinity and market risks etc.

Given  the  importance  of  the  agriculture  sector,  Government  of  India  has  taken various steps to lower the risk in agriculture and benefit the farmers through various Schemes like  National  Food  Security  Mission  (NFSM),  National  Mission  on  Edible  Oils-Oil  Palm (NMEO-OP),  Sub-Mission  on  Seed  and  Planting  Material  (SMSP),  Rashtriya  Krishi  Vikas Yojna  (RKVY),  Kisan  Credit  Card  Scheme  (KCC),  Pradhan  Mantri  Krishi  Sinchayee  Yojna (PMKSY) etc. These Schemes aim to promote and extend improved technologies of package of  practices  of  crops  through  various  types  of  demonstrations,  distribution  of  high  yielding varieties  of  seeds,  micro  nutrients, bio-fertilizers,  plant  protection  chemicals,  improved resource management tools/machineries, efficient water application devices, capacity building of farmers and local initiatives. The salient features of the major Schemes are given below:

- (i) Crop insurance is treated as a major risk mitigation tool for the benefit of farmers. Accordingly, with a view to provide financial support to farmers at the time of losses

due  to  natural  calamities,  Government  has  launched  the  Pradhan  Mantri  Fasal Bima  Yojana  (PMFBY)  which  provides  for  comprehensive  risk  insurance  against crop damage from pre-sowing to post-harvest for food crops (cereals, millets and pulses), oilseeds and commercial horticultural crops notified by the concerned State Government.   The scheme not only safeguards against wide spread yield loss due to  non-preventable  natural  risks  viz.   flood,  inundation,  landslide,  drought,  dry spells, hailstorm, cyclone, pests/diseases, natural fire and lightning, storm, typhoon, tempest,  hurricane,  tornado  etc.   but   also  against  farm  level  yield  loss  due  to localized  risks  (hailstorm,  landslide,  inundation,  cloud  burst  and  natural  fire)  and post  harvest  losses  due  to  cyclone,  cyclonic/unseasonal  rain  and  hailstorm  and prevented sowing.

- (ii) In order to provide remunerative price to the farmers of notified pulses, oilseeds & copra,  Government  implements  PM-AASHA  consisting  of  Price  Support  Scheme (PSS), Price Deficiency Payment Scheme (PDPS) &pilot of Private Procurement & Stuckists Scheme. PSS is implemented for procurement of notified pulses, oilseeds & copra at Minimum Support Price (MSP) as and when the market price of these commodities  dips  below  the  notified  MSP  particularly  at  the  time  of  harvesting period when there is glut of these commodities in the market & farmers resorting to distress  sale.  To  ensure  smooth  procurement  operation  under  PSS,  Govt.  has provided Government Guarantee amounting to Rs. 40,500/- Cr. to lender bank i.e. State Bank of India (SBI) for availing  cash credit facilities by NAFED & FCI for PSS operations.
- (iii) Government  of  India  launched  Interest  Subvention  Scheme  in  the  year  2006-07 with  a  view  to  provide  concessional  short  term  crop  loans  including  loan  availed through Kisan Credit Card (KCC) to the farmers. ISS is available to farmers availing short term agri 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; the same gets reduced to 4% per annum. The benefits of ISS can  also  be  availed  by  farmers  in  allied  activities  like  Animal  Husbandry  and Fisheries and who already possess KCC within the overall limit of Rs.3.00 lakh.
- (iv) Market Intervention Scheme (MIS) is implemented for procurement of agricultural and horticultural commodities which are perishable in nature and are not covered under the Price Support Scheme (PSS). The objective of intervention is to protect the  growers  of  these  commodities  from  making  distress  sale  in  the  event  of  a bumper  crop  during  the  peak  arrival  period  when  the  prices  tend  to  fall  below economic levels and cost of production. The condition is that there should be either at least a 10 percent increase in production or a 10 percent decrease in the ruling market prices over the previous normal year. The extent of total amount of loss to

be  shared  on  a  50:50  basis  between  the  Central  Government  and  the  State Government  is  restricted  to  25  percent  of  the  total  procurement  value  which includes cost of the commodity procured plus permitted overhead expenses. Under the scheme, in accordance with  MIS guidelines, a pre-determined quantity  at the fixed Market Intervention Price (MIP) is procured by the agencies designated by the State Government for a fixed period or till the prices are stabilized above the MIP whichever is earlier.

- (v) Central  Sector  Scheme  of  financing  facility  under  Agri  Infrastructure  Fund  is operational from the year 2020-21.  The Scheme shall provide 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 financial support.
- (vi) In  the  last  7  years  from  2014-21,  more  than  2000  new  improved  high  yielding varieties  were  released  in  different  crops  in  which  more  than  1600  varieties  are climate resilient having tolerance to different biotic/abiotic factors.
- (vii) National Agriculture Market is a pan-India electronic trading (e-trading) portal which seeks to network the existing physical APMCs through a virtual platform to create a unified  national  market  for  agricultural  commodities.  The  Portal  provides  a  single window service for all APMC related information and services.
- (viii) Steps have been taken to improve the income of farmers which include formation & promotion of Farmer Producing Organsiations (FPOs) for reducing input costs and effective marketing.
- (ix) Further, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector Scheme  being  implemented  since  1st  December,  2018.   The  Scheme  aims  at providing  financial  assistance  to  eligible  landholding  farmer  families  across  the country,  subject  to  certain  exclusion  criteria,  to  enable  them  to  take  care  of expenses  related  to  agriculture  and  allied  activities  as  well  as  domestic  needs. Under  the  Scheme,  an  amount  of  Rs.  6000/-  per  year  is  transferred  in  three  4monthly  installments  of  Rs.2000/-  directly  into  the  bank  accounts  of  the  farmers through DBT.

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