Lok Sabha Question No. 938 (UNSTARRED), answered on 2021-07-26
Subject: Rural Economy
Ministry: FINANCE
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 938

TO BE ANSWERED ON 26.07.2021

## RURAL ECONOMY

938.  SHRI G.M. SIDDESHWAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether Union Government has taken note of reports that consumption in rural India has shown a slowdown during the last Covid affected months in the country;
- (b) if so, the details thereof;
- (c) whether it is a fact that rural economy has been plagued by falling crop prices and declining incomes, resulting in a severe slump in demand; and
- (d) if so, the steps taken by Government in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (d): As per the Provisional Estimates of Gross Domestic Product (GDP) for the year 2020-21 released by the National  Statistical  Office,  the  Gross  Value  Added  (GVA)  of  agriculture  has  shown  a  growth  of  3.6  per  cent, signalling better prospects of consumption in rural India. Total Foodgrain production is estimated to rise 2.7 per cent to a new record of 305.44 million tonnes in the current crop year 2020-21, on record output of rice, wheat, maize and gram. Domestic tractor sales, an indicator of rural demand, recorded a growth of 27 per cent in FY 2020-21 over previous year. The forecast of a normal south-west monsoon in 2021-22 and recent trends in kharif sowing are further expected to boost rural incomes.

In line with the announcement made in Union Budget, 2018-19 to keep Minimum Support Prices (MSPs) at levels of  one  and  half  times  of  the  cost  of  production  to  ensure  remunerative  prices  to  the  farmers  for  their  produce, Government has increased the MSP for Rabi and Kharif crops for the marketing season 2021-22. Higher MSPs have  been  supported  by  record  levels  of  procurement  by  the  Government  at  869.0  LMT  of  paddy  benefitting 128.22 lakh farmers with MSP value of Rs.1,64,066 crore during Kharif Marketing Season 2020-21 and 433.32 LMT of wheat benefitting 49.16 Lakh farmers with MSP value of Rs.85,581.02 crore during Rabi Marketing Season 2021-22.

Government  had  announced  a  special  economic  and  comprehensive  package  of  Rs.  29.87  lakh  crore  under AtmaNirbhar Bharat (ANB) to combat the impact of the COVID-19 pandemic, to revive economic growth and to bolster  employment.  Union  Budget  2021-22  has  announced  number  of  measures  to  support  broad-based  and inclusive economic development. Government announced a relief package of Rs 6.29 lakh crore in June 2021 to strengthen public health and provide impetus for growth and employment measures.

Key measures of the above steps, inter-alia, include Pradhan Mantri Garib Kalyan Yojana, additional Emergency Working  Capital  Funding  for  farmers  through  NABARD, concessional  credit  through  Kisan  Credit  Cards,  fund transfer under PM-KISAN, PM Fasal Bima Yojana claim payments, additional subsidy for DAP & P&K fertilizers, extension of SVAMITVA Scheme to all States/UTs, enhancing agricultural credit and infrastructure funds, interest subvention  for  dairy  cooperatives,  liquidity  support  under  Rural  Infrastructure  Development  Fund  to  states,  PM Garib Kalyan Rojgar Abhiyaan, enhanced MGNREGA budgetary support, PM SVANidhi, Agri-Infrastructure Fund for farm gate infrastructure, scheme for Formalisation of Micro Food Enterprises (MFE), Pradhan Mantri Matsya Sampada Yojana, National Animal Disease Control  Programme, Animal Husbandry  Infrastructure Development Fund, Promotion of Herbal Cultivation and Beekeeping and extension of Operation Greens from Tomatoes, Onion and Potatoes (TOP) to all fruits and vegetables (TOTAL).