Lok Sabha Question No. 1203 (UNSTARRED), answered on 2021-02-09
Subject: Agrarian Reforms
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sisir Kumar Adhikari

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

## LOK SABHA UNSTARRED QUESTION NO.1203

TO BE ANSWERED ON THE 9 TH  FEBRUARY, 2021

## AGRARIAN REFORMS

1203.  SHRI SISIR KUMAR ADHIKARI:

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

- (a) whether the Government has carried out agrarian reforms in the country during the last six years and if so, the details thereof;
- (b) whether the average agricultural growth of the country has come down from 4.3 percent (2009-14) to 2.7 percent (2014-2020);
- (c) if so, whether the Government promised to double farm incomes by 2020;
- (d) whether  it  is  also  a  fact  that  low  farm  produce  prices  has  led  to  widespread  rural distress and farmers' debts are fuelling protest by farmers across the country since 2017; and
- (e) if so, the action taken by the Government to correct this situation?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a): Agriculture, being a State subject, the State Governments take appropriate measures for  development of agriculture  in  the  State.  However, 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 are at Annexure. All these steps of the Government of India are for the welfare of the farmers of the country.

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): Gross Value Added (GVA) of Agriculture & Allied sectors during 2014-20 is 3.5%.

(c): The Government constituted an Inter-ministerial  Committee  in April,  2016  to  examine issues  relating  to  'Doubling  of  Farmers  Income'  and  recommend  strategies  to  achieve  the same.  The Committee submitted its Report to the Government in September, 2018 containing the  strategy  for  doubling  of  farmers'  income  by  the  year  2022.  After  acceptance  of  the  DFI Committee  recommendations,  the  Government  has  constituted  an  'Empowered  Body'  to review and monitor the progress.

(d): 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.  Price  of  agricultural  produce  tends  to  fall  after harvesting season due to increase in market arrival of new crops.

(e): 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), Agricultural Marketing Infrastructure 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 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)  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 agricommodities
- 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 Bee-keeping

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