Lok Sabha Question No. 1289 (UNSTARRED), answered on 2021-07-27
Subject: Schemes to Increase Farmers Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Hema Malini, Manoj Kumar Tiwari, Sudarshan Bhagat, Nishikant  Dubey

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

## LOK SABHA

## UNSTARRED QUESTION NO.  1289

TO BE ANSWERED ON THE 27 TH  JULY, 2021

## SCHEMES TO INCREASE FARMERS INCOME

- 1289:  SHRIMATI HEMA MALINI:

SHRI MANOJ TIWARI:

SHRI SUDARSHAN BHAGAT:

DR. NISHIKANT DUBEY:

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

- (a) whether the Union Government has taken various steps/started new schemes to increase  the  income  of  farmers  during  the  last  seven  years  and  if  so,  the  details thereof;
- (b) whether the income of farmers has increased as expected in the above period;
- (c) if so, the details thereof, State-wise;
- (d) whether there has been a record increase in the Minimum Support Price (MSP) of various crops and income of farmers in the last seven years; and
- (e) if so, the details thereof?

## ANSWER

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

- (a): A list of various interventions and schemes launched for the benefit of farmers and to increase their income is at Annexure I .
- (b) & (c): The  last  Situation  Assessment  Survey  was  conducted  by  NSSO  in 2012-13. Since then, no survey has been conducted.

(d) & (e): 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. Accordingly,  Cost  and  MSPs  for  all  mandated  Kharif,  Rabi  and  other  commercial crops data from agriculture year 2018-19  to 2021-22 (till date) is at Annexure II .

## 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  instalments  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 farmers' 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 with transparent and competitive online trading platform.
- (ix) Under 'Har Medh Pard 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 the 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) Increase  in  procurement  under  PSS:-  The  procurement  of  Pulses,  oilseeds and copra at MSP under Price Support Scheme (PSS) has increased upto to 167.05 LMT during 2014- 15 to 2021-22( upto 22.07.2021). Moreover, 16.83 LMT  of  oilseeds  had  also  been  procured  under  Price  Deficiency  payment Scheme (PDPS) in 2018-19. In addition to this around 15.53 LMT of Pulses has also been procured at MSP under Price Stabilization Fund (PSF) under administrative control of Department of Consumer Affair.
- (xii) 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.
- (xiii) 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. 2020-21and Rs. 16.50 lakh crore for FY 2021-22.
- (xiv) 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.
- (xv) 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.

- (xvi) 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, leger 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.
- (xvii) Several market reforms have been rolled out. These include
- a.  Model  APLMC (Promotion  & Facilitation) Act, 2017.
- b.  Agri-Export Policy, that targets to double agri-exports by 2022
- c.  The Farmers Produce Trade and Commerce (Promotion  & Facilitation) Act., 2020
- d.  The Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Act., 2020
- e.  Amendment to Essential Commodities Act, 1955, that deregulates various agri-commodities
- (xviii)  Creating of Corpus Fund
- a.  Micro Irrigation Fund - Rs. 10,000 crore
- b.  Agriculture Infrastructure Fund of Rs. One Lakh Crore -
- (xix) Formation  and  Promotion  of  Farmers'  Producer  Companies  (FPOs)  to  form and promote 10,000 FPOs.

## ANNEXURE-II

## Cost and  Minimum Support Prices(MSP)                                      (Rs. per quintal)

| Sl. No.   | Commodity              | 2018-19   | 2018-19   | 2019-20   | 2019-20   | 2020-21   | 2020-21   | 2021-22   | 2021-22   |
|-----------|------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
|           | KHARIF CROPS           | Cost      | MSP       | Cost      | MSP       | Cost      | MSP       | Cost      | MSP       |
| 1         | PADDY(Common)          | 1166      | 1750      | 1208      | 1815      | 1245      | 1868      | 1293      | 1940      |
|           | (Grade A) ^            |           | 1770      |           | 1835      |           | 1888      |           | 1960      |
| 2         | JOWAR (Hybrid)         | 1619      | 2430      | 1698      | 2550      | 1746      | 2620      | 1825      | 2738      |
|           | (Maldandi) ^           |           | 2450      |           | 2570      |           | 2640      |           | 2758      |
| 3         | BAJRA                  | 990       | 1950      | 1083      | 2000      | 1175      | 2150      | 1213      | 2250      |
| 4         | RAGI                   | 1931      | 2897      | 2100      | 3150      | 2194      | 3295      | 2251      | 3377      |
| 5         | MAIZE                  | 1131      | 1700      | 1171      | 1760      | 1213      | 1850      | 1246      | 1870      |
| 6         | ARHAR(Tur)             | 3432      | 5675      | 3636      | 5800      | 3796      | 6000      | 3886      | 6300      |
| 7         | MOONG                  | 4650      | 6975      | 4699      | 7050      | 4797      | 7196      | 4850      | 7275      |
| 8         | URAD                   | 3438      | 5600      | 3477      | 5700      | 3660      | 6000      | 3816      | 6300      |
| 9         | COTTON (Medium Staple) | 3433      | 5150      | 3501      | 5255      | 3676      | 5515      | 3817      | 5726      |
|           | (Long Staple) ^        |           | 5450      |           | 5550      |           | 5825      |           | 6025      |
| 10        | GROUNDNUT IN SHELL     | 3260      | 4890      | 3394      | 5090      | 3515      | 5275      | 3699      | 5550      |
| 11        | SUNFLOWER SEED         | 3592      | 5388      | 3767      | 5650      | 3921      | 5885      | 4010      | 6015      |
| 12        | SOYABEAN               | 2266      | 3399      | 2473      | 3710      | 2587      | 3880      | 2633      | 3950      |
| 13        | SESAMUM                | 4166      | 6249      | 4322      | 6485      | 4570      | 6855      | 4871      | 7307      |
| 14        | NIGERSEED              | 3918      | 5877      | 3960      | 5940      | 4462      | 6695      | 4620      | 6930      |
|           | RABI CROPS             |           |           |           |           |           |           |           |           |
| 1         | WHEAT                  | 866       | 1840      | 923       | 1925      | 960       | 1975      |           |           |
| 2         | BARLEY                 | 860       | 1440      | 919       | 1525      | 971       | 1600      |           |           |
| 3         | GRAM                   | 2637      | 4620      | 2801      | 4875      | 2866      | 5100      |           |           |
| 4         | MASUR (LENTIL)         | 2532      | 4475      | 2727      | 4800      | 2864      | 5100      |           |           |
| 5         | RAPESEED/MUSTARD       | 2212      | 4200      | 2323      | 4425      | 2415      | 4650      |           |           |
| 6         | SAFFLOWER              | 3294      | 4945      | 3470      | 5215      | 3551      | 5327      |           |           |
| 7         | TORIA ^                |           | 4190      |           | 4425      |           | 4650      |           |           |
|           | OTHER CROPS            |           |           |           |           |           |           |           |           |
| 1         | COPRA (Milling)        | 5007      | 7511      | 6347      | 9521      | 6639      | 9960      | 6805      | 10335     |
|           | (Ball)^                |           | 7750      |           | 9920      |           | 10300     |           | 10600     |
| 2         | DE-HUSKED COCONUT ^    |           | 2030      |           | 2571      |           | 2700      |           | 2800      |
| 3         | JUTE                   | 2267      | 3700      | 2535      | 3950      | 2709      | 4225      | 2832      | 4500      |
| 4         | SUGARCANE              | 155       | 275       | 156       | 275       | 159       | 285       |           |           |

^Cost data are not available for Paddy(Grade A), Jower (Maldandi), Cotton (Long staple), Toria, Copra (Ball) and De-husked Coconut.MSPs of Toria and De-husked coconut are determined on the basis of MSPs of Rapeseed/ Mustard and Copra respectively.

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