Lok Sabha Question No. 2329 (UNSTARRED), answered on 2024-08-06
Subject: Economic Conditions of Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Kaushalendra Kumar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 2329

TO BE ANSWERED ON THE 06 TH  AUGUST, 2024

## ECONOMIC CONDITIONS OF FARMERS

2329. Shri Kaushalendra Kumar:

Will  the  Minister  of  Agriculture  and  Farmers  Welfare क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a)  whether  nearly  seventy  percent  of  population  in  the  country  is  dependant  upon agriculture and related activities, if so, the details thereof;
- (b)   whether the economic condition of farmers in the country is not good even today;
- (c)   if so, the details thereof; and
- (d)  the various steps being taken by the Government to expand agro based industries in the villages?

## ANSWER

MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a): According to the Periodic Labour Force Survey (PLFS) conducted by the National Sample  Survey  Office  (NSSO),  Ministry  of  Statistics  and  Programme  Implementation (MoSPI) during July, 2022 - June, 2023, about 45.76 percent of the total workforce is engaged in agriculture and allied sector during 2022-23.
- (b) & (c): The  National  Sample  Survey  Office  (NSSO),  Ministry  of  Statistics  and Programme Implementation (MoSPI) conducted Situation Assessment Survey (SAS) of Agricultural  Households  during  NSS  70 th   (January  -  December,  2013)  and  77 th   round (January - December, 2019) in the rural areas of the country. As per result of SAS, the average monthly income per agricultural household has increased from Rs. 6,426 during 2012-13 to Rs. 10,218 in 2018-19.
- (d): Agriculture  being  a  State  Subject,  the  State  Governments  take  appropriate measures  for  development  of  agriculture  in  the  State.  However,  Government  of  India supplements the  efforts  of  States  through  appropriate  policy  measures  and  budgetary support and various schemes/ programmes. The various schemes/ programmes of the

Government  of  India  are  meant  for  the  welfare  of  farmers  by  increasing  production, remunerative returns and income support to farmers.

There  have  been  demands  to  accord  industry  status  to  the  agriculture  sector. Agriculture  and  industry  supplement  each  other.  Government  seeks  to  bestow  on  the agriculture  sector  as  many  benefits  as  available  to  those  in  the  manufacturing  sector, such  as,  easy  availability  of  credit  and  other  inputs  like  quality  seeds,  fertilizers, electricity, etc. and creation of infrastructure facilities, such as assistance to FPO's/cold storages,  etc.  for  development  of  agriculture  sector,  including  marketing  and  postharvest management.

The Agriculture Infrastructure Fund (Agri Infra Fund) launched in July 2020 under the  Atmanirbhar  Bharat  initiative,  helps  expand  agro-based  industries  in  villages  by providing  financial  support and  low-interest  loans  for  developing  infrastructure  such  as cold  storage,  warehouses,  and  processing  units.  This  initiative  aims  to  optimize  the development  of  post-harvest  infrastructure  and  creation  of  community  farming  assets, facilitating value addition and ensuring fair returns for farmers. AIF facilitates financing of medium and long term loans through various lending institutions for funding agriculture infrastructure Projects at farm-gate & aggregation points all over the country. AIF loans under this financing facility up to a limit of 2 crore come with interest subvention of 3% per  annum  and  Credit  guarantee  coverage  for  eligible  borrowers  under  CGTMSE scheme for a maximum period of 7 years. And interest rate is capped at 9% for finance under AIF Scheme.

The Fund of Rs. 1 lakh crore under the scheme will be financed by Banks and other  lending  institutions  from  FY  2020-21  to  FY  2025-26  and  the  support  under  the scheme will be provided for the duration of FY 2020-21 to FY 2032-33.

It encourages entrepreneurship among farmers, FPOs, and start-ups, creating job opportunities  and  reducing  urban  migration.  The  fund  supports  modem  agricultural practices  and  technology  adoption,  boosting  productivity  and  promoting  diversification into  various  agro-based  sectors  aiming  to  transform  rural  agriculture,  enhance  market access, and improve the livelihoods of farmers.

As  on  31st  July  2024,  Rs.  47,022  Crore  loans  have  been  sanctioned  by  various lending  institutions  for  73,338  projects.  These  sanctioned  projects  have  mobilised  an aggregate  investment  of  Rs.  77,754  crore  in  the  agriculture  sector.  According  to  the

Impact  assessment  study  undertaken  by  Agro-Economic  Research  Centre  (AERC). Pune, 97% of projects set up with Bank loans under the AIF Scheme are located in rural areas. Some  of  the  major  schemes  providing  financial  and  technical  assistance  for encouraging products related to agriculture, horticulture, dairy, poultry farming, etc., are as follows: (i) Mission for Integrated Development of Horticulture (MIDH) (ii) Paramparagat Krishi Vikas Yojana (PKVY) (iii) National Beekeeping and Honey Mission (NBHM) (iv) National Bamboo Mission (NBM) (v) Mission Organic Value Chain Development for North East (MOVCDNER) (vi) Rashtriya Gokul Mission(RGM) (vii) National Programme for Dairy Development (NPDD) (viii) Dairy Processing and Infrastructure Development Fund (DIDF) (ix) Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDC&FPO) (x) National Livestock Mission(NLM) (xi) Animal Husbandry Infrastructure Development Fund(AHIDF) (xii) Pradhan Mantri Kisan Sampada Yojana (PMKSY) (xiii) Prime Minister - Formalization of Micro Food Processing Enterprises (PM-FME) etc.

****