Lok Sabha Question No. 2387 (UNSTARRED), answered on 2021-03-09
Subject: Farmers Distress
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: S. Jagathrakshakan

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2387

TO BE ANSWERED ON THE 9 TH  MARCH, 2021

## FARMERS DISTRESS

2387.  SHRI S. JAGATHRAKSHAKAN:

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

- (a) whether the Government is aware of the fact that fluctuations in market prices, excess or lack of rainfall cause severe distress to farmers;
- (b) if so, the preventive measures taken/to be 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 they find no other way to escape the crushing debt than taking their own life;and
- (d) if so, the steps taken/to be taken by the Government keeping in mind that the rate of farmer suicide in the country is alarmingly high?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA SINGH TOMAR)

(a) & (b): The  fluctuations in market  prices of agricultural  produce is dependent  on  variety  of  factors  at  any  given  point  of  time  like  demand  and supply  of  the  produce,  climatic  conditions,  perishable  nature  of  produce  and availability  of  transport.  The  quality  parameters  also  play  an  important  role  in the price of a commodity.

Impact  of  climate  change  on  Indian  agriculture  was  studied  under National  Innovations  in  Climate  Resiilent  Agriculture  (NICRA).  Rainfed  rice yields in India are projected to reduce marginally (˂2.5%) in 2050 and 2080 and irrigated rice yields by 7% in 2050 and 10% in 2080 scenarios. Further, wheat yield projected to reduce by 6-25% in 2100 and maize yields by 18-23%. Future climates are likely to benefit chickpea with increase in productivity (23-54%).

Government of India has taken several steps to protect the farmers from distress sale, some of which are as follows:

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  and  rolling  out  of  new schemes  of  Price  Deficiency  Payment  Scheme  (PDPS)  and  pilot  of  Private Procurement and Stockist Scheme (PPSS) has been launched.

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.

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 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.

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.

(c) & (d): 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 (PMKISAN). The scheme aims to provide a payment of Rs 6000/- per year, in three 4-monthly instalments of Rs 2000/- .

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.

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.

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.

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  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.

Government of India has been promoting agri marketing reforms so as to ensure remunerative prices to farmers, some of which are as follows:

- i). The  Model  Agricultural  Produce  &  Livestock  Marketing  (Promotion  & Facilitation) Act, 2017 ;
- ii). The Farmers' Produce Trade & Commerce (Promotion and Facilitation) Act, 2020;
- iii). The Farmers (Empowerment an Protection) Agreement on Price Assurance and Farm Services Act, 2020;
- iv). The Essential Commodities (Amendment) Act, 2020

National Agriculture Market (e-NAM) platform facilitates online trading of agriculture  and  horticulture  commodities  to  enable  farmers  to  realize  better remunerative prices for their produce.

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