Lok Sabha Question No. 1357 (UNSTARRED), answered on 2024-12-03
Subject: Initiatives to Ease Financial Pressure on Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Kuldeep Indora

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS' WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS' WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 1357

TO BE ANSWERED ON 03/12/2024

## INITIATIVES TO EASE FINANCIAL PRESSURE ON FARMERS

1357. Shri Kuldeep Indora:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष और िकसान कʞाण मंũी be pleased to state:

- (a) whether the Government is aware that the percentage of farmer families with outstanding debts has increased over the last five years;
- (b) the details of the measures being proposed by the Government to ensure that more and more farmer families are able to meet their expenses or fulfil their needs without relying on loans; and (c) whether the Government is taking any new initiatives to ease financial pressure on farmers and their dependence on borrowed money to meet their increasing expenditure?

## ANSWER

## THE MINISTER OF STATE OF AGRICULTURE AND FARMERS WELFARE

क ृ िष और िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a) The details of agriculture credit are as follows: -

| Year                                               |          2019-20 |          2020-21 |         2021-22 |          2022-23 |          2023-24 |
|----------------------------------------------------|------------------|------------------|-----------------|------------------|------------------|
| (A) Total Agri loan outstanding (Rs. in Cr)        |      2.05873e+06 |      2.27743e+06 |      2.5135e+06 |      2.88817e+06 |      3.35265e+06 |
| (B) No of A/c against outstanding amount (in lakh) |   1493.78        |   1531.96        |   1611.74       |   1741.04        |   1874.7         |
| (C) Outstanding per Farmer account (in Rs.)        | 137800           | 148657           | 155924          | 165892           | 178808           |

(Source RBI/ NABARD)

The number of accounts of the farmers opting for credit through institutional sources has increased by  380.92  lakhs  from  31.03.2020  to  31.03.2024.  Further,  the  outstanding  per  agricultural  loan account  is  increasing  gradually  from  Rs.137799.88/-  as  on 31.03.2020  to  Rs.178807.77/-  as  on 31.03.2024.

In addition, NPA in Agriculture loans of Scheduled Commercial Banks,  Cooperatives Banks & Regional Rural Banks has been decreased during the last 5 years (ie. from FY 2019-20 to FY 202324) as below:

| Period   | SCBs   | Coopertives Banks   | RRBs   |
|----------|--------|---------------------|--------|
| 2019-20  | 10.3%  | 7.99%               | 8.72%  |
| 2023-24  | 6.20%  | 5.32%               | 6.65%  |

Decreasing NPA during this period indicates improvement in repaying capacity of farmers.

- (b & C) The various schemes/ programmes of the Government of India are designed to increase the  welfare  of  farmers  by  increasing  production,  remunerative  returns  and  income  support  to farmers.  Brief  of  schemes/  programmes  initiated  and  implemented  during  last  10  year  by Department of Agriculture & Farmer's Welfare for making farming more remunerative and make the farmers financially more secure including disbursement of farm loan are provided in annexureI.

## Annexure for LS UQ. No.1357 for answer on 03.12.2024

Brief  of  new  schemes/  programmes  initiated  during  last  10  year  by  DA&FW  for  making farming more remunerative and make the farmers financially more secure.

## 1 . Increase in budget allocation over the years

In the year 2013-14 the budget allocation of Department of Agriculture and Farmers' Welfare was only Rs.21933.50 crore. This has increased by more than 5.58 times to Rs. Rs.1,22,528.77 crore in 2024-25.

## 2. Fixing of MSP at one-and-a half times the cost of production

The Government has increased the MSP for all mandated Kharif, Rabi and other commercial crops with a return of at least 50 per cent over all India weighted average cost of production from 201819.

## 3. Income support to farmers through PM KISAN

Launch of PM-KISAN in 2019 - an income support scheme providing Rs. 6000 per year in 3 equal installments. More than Rs. 3.46 lakh crore has been released so far to eligible farmers.

4.  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY) was  launched  in  2016  to  provide  crop insurance to farmers to mitigate weather risk.
5. Agri Infrastructure Fund was launched to mobilise investment to creat infrasturcture in rural and Agriculutre sector.
6. Promotion of FPOs A new Central Sector Scheme for Formation & Promotion of new 10,000 FPOs launched in 2020.
7. Soil Health Cards scheme was introduced in the year 2014-15 to optimize usage of nutrients.
8. Per Drop More Crop (PDMC) is being implemented to provide micro irrigation in the country
9. Launch of the National Mission for Edible Oils - Oil Palm and National Mission for Edible Oils- Oil Seeds -

New Centrally  Sponsored  Scheme  namely,  National  Mission  on  Edible  Oil  (NMEO)-Oil  Palm (NMEO-OP) and National Mission on Edible Oil (NMEO)-Oil Seeds (NMEO-OS)  were launched to promote oil palm and oilseed farmers.

10. Setting up of E-NAM extension Platform to provide better market access to the farmers

## 11.Institutional agriculture credit :

As per priority Sector Landing (PSL) regulation govt has mandated that banks will provide 18% of their total loans to agriculture and allied sector. Since 2016 a sub limit has been fixed for small and marginal farmers which at present is 10%  (i.e. 56% of total agriculture credit must go to small and marginal farmers).

The total agriculture credit to farmers has increased from Rs. 8.45 lakh crore in 2014-15 to Rs. 25.48 lakh crore in 2023-24 which includes Rs. 15.07 lakh Crore of crop loans.

12. Modified Interest Subvention Scheme (MISS) is  being implemented to provide short term Agri-loans availed by farmers through KCC for their working capital requirements at concessional rate of interest.

## 13. MIDH - Cluster Development Programme

Mission  for  Integrated  Development  of  Horticulutre  (MIDH),  a  Centrally  Sponsored Scheme  is  being  implemented  for  holistic  growth  of  the  horticulture  sector  covering  fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew and cocoa.

## 14. Promotion of organic farming in the country

- i. Paramparagat Krishi Vikas Yojana (PKVY) was initiated to promote organic farming in the country.  In  addition,  Under  Namami  Gange  Programme  natural  farming  have  been promoted.
- ii. Government  also  proposes  to  promote  sustainable  natural  farming  systems  through  the scheme Bhartiya Prakratik Krishi Padhati (BPKP). The proposed scheme aims at cutting down cost of cultivation, enhancing farmer's income and ensuring resource conservation and, safe and healthy soils, environment and food.
- iii. Mission Organic Value Chain Development in North East Region (MOVCDNER) has been launched.

## 15. Micro Irrigation Fund

A Micro Irrigation Fund  has been created with NABARD.

16. The National Beekeeping and Honey Mission (NBHM )  was  launched in 2020 for the overall  promotion and development of scientific beekeeping  and to achieve the goal of "Sweet Revolution".

## 17. Agricultural Mechanization

Agricultural  mechanization  is  being  promoted  through  Sub  Mission  on  Agriculutre Mechanization (SMAM) for providing subsidised machinery to farmers.

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