Lok Sabha Question No. 119 (STARRED), answered on 2021-07-27
Subject: Distress among Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Y. S. Avinash Reddy

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

## LOK  SABHA STARRED QUESTION NO. 119

TO BE ANSWERED ON THE  27 TH  JULY, 2021

## DISTRESS AMONG FARMERS

- *119.  SHRI Y.S. AVINASH REDDY:

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

- (a) whether the Government is aware that fluctuations in market prices and excess or lack of rainfall cause severe distress to farmers;
- (b) if so, the preventive measures taken by the Government in this regard;
- (c) whether the Government is also aware that when the farmers are not able to sell their crops at desired rates, they fall into debt trap and find no other way to escape from debts and resort to committing suicide; and
- (d) if so, the steps being taken by the Government to reduce the rate of farmer suicides in the country?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (d): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO. 119  DUE FOR REPLY ON 27 th  JULY, 2021.

(a) to (b): The market prices of agricultural produce is dependent on variety of factors at any given point of time like demand and supply of the produce, quality of produce, climatic conditions such as excess or lack of rainfall and availability of transportation etc., and change in any one factor even causes the fluctuations in market prices.

Government of India has taken several steps to protect the farmers from fluctuation in market prices and excess or lack of rainfall, leading to distress if any to farmers, by way of providing schemes and interventions for improving the income of farmers, some of which are as follows:

- i. Government launched an umbrella scheme  of 'Pradhan Mantri Annadata Aay Sanrakshan  Abhiyan'  (PM-AASHA)  by  incorporating  the  erstwhile Price Support Scheme (PSS) with certain modifications.
- ii. 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.
- 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. 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.

-2-

(c) & (d): Government of India has taken several steps to facilitate farmers to sell their crops at desired rates and to protect the farmers from falling into debt trap, some of which are as follows:

- i. With  a  view  to  provide  income  support  to  all  farmer  families  across  the  country,  to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, Government had 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/- .
- ii. 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 is implementing a 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, provision has been made for a minimum  fixed  pension  of  Rs.  3000/-  to  the  eligible  small  and  marginal  farmers, subject to certain exclusion clauses, on attaining the age of 60 years.
- iii. To ensure flow of adequate credit, Government sets annual target for the flow of credit to  the  agriculture  sector  and  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.
- iv. 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.
- v. 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 of post harvest on the same rate as available to crop loan.

- vi. The Government has extended the facility of Kisan Credit Card (KCC) to the farmers practicing animal husbandry and fisheries related activities. Processing fee, inspection, ledger folio charges and all other service charges for short term crop loans upto Rs.3.00 lakh have been waived off. Collateral free loan limit for short term agricredit has been raised from Rs.1.00 lakh to Rs.1.60 lakh.
- vii. Government of India have been promoting agri marketing reforms/ various schemes to increase the farmers income,  some of which are as follows:
- a)  Enacted new agri. reform Laws.
- b)  Launch  of  National  Agriculture  Market  (e-NAM)  platform  to  facilitates  online trading of agricultural commodities to enable farmers to realize better remunerative prices for their produce.
- c)  Promotion  of  new  Central  Sector  Scheme  for  Formation  &  Promotion  of  new 10,000 FPOs.
- d)  Promotion  of  farm  gate  infrastructure  through  Agriculture  Infrastructure  Fund (AIF).

*****