Lok Sabha Question No. 1552 (UNSTARRED), answered on 2023-12-12
Subject: Financial Assistance to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 1552

TO BE ANSWERED ON THE 12 th  December, 2023

## FINANCIAL ASSISTANCE TO FARMERS

1552.  SHRI N.K. PREMACHANDRAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ǒष एवं Ǒकसान कãयाण मंğी be pleased to state:

- (a)  whether  the  Government  proposes  to  initiate  action  to  provide  sufficient  financial assistance to farmers so as to avoid suicide and if so, the details thereof;
- (b)  whether  the  Government  has  conducted  any  study  regarding  the  reasons  for farmers suicide and if so, the details thereof;
- (c) the total number of farmers who committed suicide in the State of Kerala during the last seven years;
- (d) whether the Government proposes to relax the terms for availing loan to farmers and if so, the details of action thereon;
- (e) whether the Government proposes to introduce a scheme for availing interest free loans to the paddy farmers in the State of Kerala considering their financial crisis due to the delay in disbursing the price of paddy procurement by the Government and if so, the details of the action taken thereon;
- (f)  whether  the  Government  proposes  to  initiate  other  measures  for  avoiding  suicide  of farmers and if so, the details thereof?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ǒष एवं Ǒकसान कãयाण मंğी (SHRI ARJUN MUNDA)

- (a) to (f): The National Crime Records Bureau (NCRB) under the Ministry of Home Affairs compiles and disseminates information on suicides in its publication titled 'Accidental Deaths and  Suicides  in  India'  (ADSI).  The  reports  till  2022  are  available  on  NCRB  website (https://ncrb.gov.in).

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

Government of India launched Modified Interest Subvention Scheme (MISS), a Central Sector Scheme , in the year 2006-07 with a view to provide short term Agri-loans availed by farmers through KCC for their working capital requirements at concessional rate of interest. Under this scheme, farmers are given KCC loan at subvented interest rate of 7%. For this, at present, interest subvention of @1.5% is being given to financial institutions. Therefore, short term  loans  for  Agriculture  and  other  allied  activities  including  animal  husbandry,  dairy, fisheries etc. upto Rs. 3.00 lakh is available to farmers at an interest rate of 7% per annum. Additional 3% prompt repayment incentive (PRI) is also given to the farmers for prompt and timely repayment of loans; thus reducing the effective rate of interest to 4% per annum. In case of short term loan availed for allied activities only (other than crop husbandry), the loan amount upto Rs. 2.00 lakh is available at the rate of 7%. Additional 3% PRI is also available on it.

The implementing agencies for settling the claims under Modified Interest Subvention Scheme  are  Reserve  Bank  of  India  (RBI)/National  Bank  for Agriculture and  Rural development (NABARD) to which funds are released for further disbursement to Scheduled Commercial  Banks  (SCBs)/  Small  Finance  Banks  /  RRBs/  Cooperatives/  Computerized PACS ceded with SCBs. There is no State/UT-wise allocation/release under MISS.

A one Lakh Crore, Agriculture Infrastructure Fund (AIF) scheme was launched with an objective  to  mobilize  a  medium  -  long  term  debt  financing  facility  for  investment  in  viable projects for post-harvest management Infrastructure and community farming assets through incentives and financial support in order to improve agriculture infrastructure in the country. Following supports are being provided under Agri Infra Fund.

- i. Interest Subvention: All loans under this financing facility have interest subvention of 3% per annum up to a limit of ₹ 2 crore. This subvention is available for  a  maximum period of 7 years. In case of loans beyond ₹ 2 crore, interest subvention is limited up to ₹ 2 crore.
- ii. Credit Guarantee: Credit guarantee coverage is available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises  (CGTMSE)  scheme  for  a  loan  up  to  ₹  2  crore.  The  fee  for  this coverage will be paid by the Government. In case of FPOs the credit guarantee may  be  availed  from  the  facility  created  under  FPO  promotion  scheme  of DA&FW.

With the passage of time, the scheme is gaining popularity. Since the inception of AIF, Rs.31,183  Crores  have  been  sanctioned  for  40,645projects  under  AIF,  out  of  this  total sanctioned amount scheme benefits are extended for an amount of Rs24,752Crores. These sanctioned projects have mobilized an investment of Rs52,952 Crores in agriculture sector.

Major projects sanctioned under AIF include 10,516 warehouses, 8,595 primary processing units, 8,770 custom hiring centres, 2,157 sorting & grading units, 1,328 cold store projects, 169 assaying units and around 9110 other kinds of post-harvest management projects and community farming assets.

## Major schemes/ programmes of the Department of Agriculture and Farmers Welfare

## 1. Unprecedented enhancement in budget allocation

In the Fiscal year 2013-14, when the Ministry of Cooperation, Department of Animal Husbandry and Dairying, and Department of Fisheries were integral parts of the Ministry  of Agriculture and  Farmers  Welfare,  the total  budget allocation  was a mere  Rs. 30,223.88 crore. Despite the subsequent separation of these ministries/ departments, the total budget allocation for the Ministry of Agriculture and Farmers Welfare has witnessed a substantial increase, reaching Rs.1,25,035.79 crore in the financial year 2023-24.

## 2. 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 . 2.81 lakh crore has been released so far to more than 11 crore farmers as on 30.11.2023.

## 3. Pradhan Mantri Fasal BimaYojana (PMFBY)

Seven year (Provisional) - PMFBY was launched in 2016 addressing problems of high premium rates for farmers and reduction in sum insured due to capping. In past 7 Years of implementation - 49.44 crore farmer applications enrolled and over 14.06 crore (Provisional) farmer applicants have received claims of over Rs. 1,46,664 crore.   During this period nearly Rs. 29,183 crore were paid by farmers as their share of premium against which claims over Rs. 1,46,664 crore (Provisional) have been paid to them.   Thus for every 100 rupees of premium paid by farmers, they have received about  Rs. 502  as claims.

DigiClaimFor transparency in calculation and payment of claims, Claim Payment Module to workout claims and to transfer these claims directly to the farmer's account is being done through National Crop Insurance Portal (NCIP) using PFMS platform. This initiative has been launched on 23rd March, 2023 for implementation from Kharif  2022 season claims onwards. All the claims are now been paid by insurance companies directly to farmers account through Digiclaim.

## 4. Institutional credit for agriculture sector

- i. Increased from Rs. 7.3 lakh crore in 2013-14 to Rs. 21.55 lakh crore in 2022-23.
- ii. Benefit of concessional institutional credit through KCC at 4% interest per annum has also now been extended to Animal Husbandry and Fisheries farmers for meeting their short-term working capital needs.
- iii. A special drive has been undertaken since February 2020 to provide concessional institutional credit with focus on covering all PM-KISAN beneficiaries through Kisan Credit Cards (KCC). As on 20-10-2023, 482.73 lakh new KCC applications have been sanctioned with a sanctioned credit limit of Rs. 5,47,819 crore as part of the drive.

## 5. Fixing  of  Minimum  Support  Price  (MSP)  at  one-and-a  half  times  the  cost  of production

- i. 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 2018-19.
- ii. MSP for Paddy (common) has increased to Rs. 2,183 per quintal in 2023-24 from Rs. 1,310 per quintal in 2013-14.
- iii. MSP for Wheat increased from Rs. 1,400 per quintal in 2013-14 to Rs. 2,275 per quintal in 2023-24.

## 6. Promotion of organic farming in the country

- i. Paramparagat Krishi Vikas Yojana (PKVY) was initiated in 2015-16 to promote organic farming in the country. 32,384 clusters have been formed and an area of 6.53 lakh hectare has been covered benefitting 16.19 lakh farmers. In addition, Under Namami Gange Programme 1.23 lakh hectare area covered and under natural farming 4.09 lakh hectare area covered.
- 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. 379 Farmer Producer Companies have been formed comprising of 189039 farmers and covering 1,72,966 hectare area.

## 7. Per Drop More Crop:

Per Drop More Crop (PDMC) scheme was launched in the year 2015-16 which aims to  increase water use efficiency, reducing cost of inputs and increasing productivity at the farm level through Micro Irrigation technologies i.e. drip and sprinkler irrigation systems. So far, an area of 81.87 lakh hectare has been covered under Micro irrigation through the PDMC scheme from  the  year  2015-16  and  central  assistance  of  Rs.  18,893.74  crore  has  been released.

## 8. Micro Irrigation Fund:

A Micro  Irrigation  Fund  of  initial  corpus  Rs 5,000 crore has  been  created  with NABARD.  In the Budget Announcement for 2021-22, the corpus of the fund is to be increased to Rs.10,000 crores. Projects worth Rs 4,710.96 crore have been approved so far.

## 9. Promotion of Farmer Producer Organisations (FPOs)

- i. A new Central Sector Scheme for Formation & Promotion of new 10,000 FPOs launched by Hon'ble Prime Minister on 29th February, 2020 with budget outlay of Rs 6,865 Crore till 2027-28.
- ii. As on 31.10.2023, 7,476 no. of FPOs have been registered under new FPO scheme.
- iii. Equity Grant of Rs. 113.68 Crore has been released to 2,663 FPOs.
- iv. Credit Guarantee Cover worth Rs. 213.82 Cr. issued to 918 FPOs

10. The National Beekeeping and Honey Mission (NBHM ) was launched in 2020 as part of the Atma Nirbhar Bharat Abhiyan with an outlay of Rs. 500.00 crores for the period of 3 years, i.e., 2020-21 to 2022-23, and the scheme has been extended for next three years, i.e., 2023-24 to 2025-26, with the remaining available budget of Rs. 370.00 crores from the allocated budget of Rs. 500.00 crores for the overall promotion and development of scientific beekeeping and to achieve the goal of "Sweet Revolution".

## 11. Agricultural Mechanization :

Agricultural  mechanization  is  extremely  vital  to  modernize  agriculture  and  reduce drudgery of farming operations. During the period from 2014-15 to March, 2023 an amount of Rs.6405.55 crore have been allocated for agricultural mechanization. 15,23,650numbers of machines and equipments have been provided to farmers on subsidy.   23,018 custom hiring centers,  475  high-tech  hubs  and  20,461 farm machinery  banks have been  established to make available agricultural machines and equipments to the farmers on rental basis. During 2023-24,  Rs.252.39  Crore  have  been  released  to  States  for  distribution  of  37937  nos.  of agricultural machinery ,for establishment of 1916 custom Hiring Centres, 41 Hi-Tech Centres and 82 nos. of Farm Machinery Banks.

## 12. Namo Drone Didi:

The Government has recently approved Central Sector Scheme for providing drones to the Women Self Help Groups (SHGs) for the period from 2024-25 to 2025-26 with an outlay of Rs.1261 Crores. The scheme aims to provide drones to 15,000 selected women SHGs for providing  rental  services  to  farmers  for  agriculture  purpose  (application  of  fertilizers  and pesticides). Under this scheme, Central Financial Assistance @ 80% of the cost of drone and accessories / ancillary charges up to a maximum of Rs.8.0 lakhs will be provided to the women SHGs for purchase of drones. The Cluster Level Federations (CLFs) may raise the balance amount (total cost of procurement minus subsidy) as loan under National Agriculture Infra Financing Facility (AIF). Interest subvention @ 3% on the AIF loan will be provided to the CLFs.  The  scheme  will  help  in  infusing  advance  technology  in  agriculture  for  improved efficiency, enhanced crop yield and reduced cost of operation for the benefit of farmers. The scheme will also provide sustainable business and livelihood support to SHGs and they would be able to earn additional income of at least Rs.1.0 lakh per annum.

## 13. Providing Soil Health Cards to farmers :

Soil Health Card Scheme was introduced in the year 2014-15 to optimize usage of nutrients. The following numbers of cards have been issued to farmers:

i.

ii.

iii.

iv.

Cycle-I (2015 to 2017) - 10.74 crore Cycle-II (2017 to 2019)- 12.19 crore Model Village Programme (2019-20)- 23.71 lakh In the year 2020-21- 11.52 lakh

## 14. Setting up of National Agriculture Market ( e-NAM) extension Platform

- i. 1388 Mandis of 23 States and 04 UTs have been integrated to e-NAM platform. (27 additional mandis have been integrated with e NAM which included J&K (6) Madhya Pradesh (3) Maharashtra (14) Uttrakhand  (4).
- ii. As on 31 st  Oct 2023,  1.76 crore  Farmers &  2,49,903 traders have been registered on e-NAM portal. Total volume of 8.47 Crore MT & 29.25 Crore numbers (bamboo, betel leaves, coconut, lemon & sweet corn) collectively worth approximately Rs. 2.98 lakh crore of trade has been recorded on e-NAM platform.

## 15. Launch of the National Mission for Edible Oils - Oil Palm

A new Centrally Sponsored Scheme namely, National Mission on Edible Oil (NMEO)Oil Palm (NMEO-OP) has been launched during Auguest,2021 with the aim to enhance the edible oils availability in the country by harnessing Oil Palm area expansion, increasing CPO production and to reduce the import burden on edible oil. The Mission will bring additional area of 6.5 lakh ha under Oil Palm plantation with 3.28 lakh ha in north-eastern states and 3.22 in Rest of India with a total outlay of Rs. 11,040 crore in next 5 years from 2021-22 to 2025-26.

## 16. Agri Infrastructure Fund (AIF) :

A one Lakh Crore,Agriculture Infrastructure Fund (AIF) scheme was launched with an objective  to  mobilize  a  medium  -  long  term  debt  financing  facility  for  investment  in  viable projects for post-harvest management Infrastructure and community farming assets through incentives and financial support in order to improve agriculture infrastructure in the country. Interest Subvention and Credit Guarantee supports are being provided under Agri Infra Fund.

## 17. Improvement in farm produce logistics, Introduction of Kisan Rail.

Kisan Rail has been launched by Ministry of Railways to exclusively cater to movement of  perishable  agri-horti  commodities.  First  Kisan  Rail  was  started  in  July  2020.  Till  28 th February, 2023, 2359 services on 167 routes have been operated.

## 18. MIDH - Cluster Development Programme:

Details of physical progress under the major components of NHM/HMNEH scheme of MIDH from 2014-15 to 2023-24 (as on 31.10.2023) is as under:

- Area Expansion: - An additional area of 12.95 lakh ha. of identified horticulture crops has been covered.
- Nurseries:  -  872  nurseries  have  been  established  for  production  of  quality  planting material.
- Rejuvenation:  -  An  area  of  1.41  lakh  ha.  of  old  and  senile  orchards  has  been rejuvenated.
- Organic Farming: - An area of 52069 ha. been covered under organic practices.
- Protected Cultivation: - An area of 3.07 lakh ha. has been covered under Protected Cultivation.
- Water Resources: - 49979 water-harvesting structures have been created.
- Beekeeping: - 15.93 lakh bee colonies with hives have been distributed.
- Horticulture  Mechanization:  -2.60  lakh  horticulture  mechanization  equipment  have been distributed.
- Post-Harvest Management Infrastructures: - 1.14 lakh post-harvest units have been established.
- Market Infrastructures: - 14349 market infrastructures have been set up.
- Training of Farmers: - Under HRD, 9.11 lakh farmers have been trained under various horticulture activities.

## 19. Creation of a Start-up Eco system in agriculture and allied sector

So  far,  1259  Start-ups   during  FY  2019-20  to  2023-24  have  been  selected  by different   Knowledge  Partners  (KPs)  and  Agribusiness  Incubators  (R-ABIs)  working  in agriculture &  allied sector.    Rs.  83.67 crore as  grants-in-aid  has  been  released  in installments  to the respective KPs & R-ABIs for funding to these Start-ups  under RKVY Agristartup Programme of Department of Agriculture & FW.

## 20. Achievement in Export of Agri and Allied Agri- Commodities

The country has witnessed emphatic growth in export of agri and allied commodities. As compared to year 2020-21, the Agri and allied export has increased from 41.86 billion USD in 2020-21 to 50.24 billion USD in 2021-22 i.e. an increase of 19.99%.

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