Lok Sabha Question No. 872 (UNSTARRED), answered on 2023-02-07
Subject: Schemes for Relief to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Girish Chandra

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 872

TO BE ANSWERED ON THE 7 TH  FEBRUARY, 2023

## SCHEMES FOR RELIEF TO FARMERS

872.  SHRI GIRISH CHANDRA:

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

- (a) whether the Government has any schemes to provide relief for the losses in farming due to natural calamities;
- (b) if so, whether the Government intends to provide relief for the losses in farming due to the heavy rainfall in Uttar Pradesh;
- (c) if so, the time by which such assistance would be provided to Uttar Pradesh; and

(d) if not, the reasons therefor?

## ANSWER

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

- (a) to (d): The State Government is primarily responsible for providing necessary relief measures  in  the  wake  of  natural  calamities.  For  undertaking  relief  measures,  funds  are available  with  the  State  Government  in  the  form  of  the  State  Disaster  Response  Fund (SDRF).  Additional  financial  assistance,  over  and  above  SDRF,  is  considered  from  the National Disaster Response Fund (NDRF) for natural calamities of a severe nature and is approved  on  the  basis  of  a  Memorandum  received  from  the  State  Government,  in accordance with established procedures, which includes an assessment based on the visit of  an  Inter-Ministerial  Central  Team  (IMCT).  The  financial  assistance  includes  agriculture input  subsidy  as  one of  the  components,  which  is  computed  for  the  affected  area  having crop loss of 33% & above.

The  State  Government  of  Uttar  Pradesh  has  been  allocated  Rs.2165.60  crore (Rs.1624.00 crore as central share & Rs. 541.60 crore as state share) under SDRF during 2022-23. First installment of central share of SDRF amounting to Rs.812.00 crore has been released to the State.

The  Government  of  India  is  implementing  Modified  Interest  Subvention  Scheme (MISS)  to  provide  short  term  agri-loans  to  farmers  through  Kisan  Credit  Card  (KCC)  at concessional rate of interest to meet their working capital requirements. Under this scheme, farmers are given KCC loan at subvented interest rate of 7%. For this, at present, interest subvention of @ 1.5% is being given to financial institutions. Therefore, short term loans for agriculture and other allied activities, including animal husbandry, dairy, fisheries etc. upto Rs.  3.00  lakh  is  available  to  farmers  at  an  interest  rate  of  7%  per  annum.  Additional  3% subvention  is  also  given  to  the  farmers  for  prompt  and  timely  repayment  of  loans.  Thus, reducing the effective rate of interest to 4% per annum. In case of short term loan availed for allied  activities  only  (other  than  crop  husbandry),  the  loan  amount  upto  Rs.  2.00  lakh  is available at the rate of 7%. Additional 3% interest subvention is also available on it.

In  order  to  provide  relief  to  the  farmers  on  occurrence  of  natural  calamities,  the component of interest subvention is available on the restructured amount to banks for the first year and such restructured loans would attract normal rate of interest from the second year onwards as per the policy laid down by the Reserve Bank of India (RBI).

Interest  subvention  and  prompt  repayment  incentive  on  restructured  crop  loans  is also given to farmers affected by severe natural calamities for a maximum period of 5 years on  the  basis  of  report  of  Inter-Ministerial  Central  Team  (IMCT)  and  recommendations  of Sub-Committee of National Executive Committee (SC-NEC).

In  addition,  the  Government  of  India  has  introduced  yield  based  Pradhan  Mantri Fasal  Bima  Yojana  (PMFBY)  and  weather  based  Restructured  Weather  Based  Crop Insurance  Scheme  (WBCIS)  from  Kharif  2016  to  provide  financial  support  to  farmers suffering crop loss/damage arising out of natural calamities, adverse weather incidence and to stabilize income of farmers. Comprehensive risk insurance is provided under the scheme from  pre-harvesting  to  post-harvest  losses.  Under  this  Scheme,  claims  are  paid  to  only those farmers who have insured their crops and paid their share of premium under any of the notified crop insurance scheme in the notified area/crop by the State Government. The State Government of Uttar Pradesh is implementing the scheme since its inception.

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