Lok Sabha Question No. 282 (UNSTARRED), answered on 2023-12-05
Subject: Taxation on Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Subhash Ramrao Bhamre, DNV Senthilkumar. S., Supriya Sadanand Sule, Amol Ramsing Kolhe, Kuldeep Rai Sharma

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE & FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 282

TO BE ANSWERED ON THE 5 TH  DECEMBER, 2023

## TAXATION ON FARMERS

282. DR. SUBHASH RAMRAO BHAMRE: DR. DNV SENTHILKUMAR.S: SHRIMATI SUPRIYA SULE: DR. AMOL RAMSING KOLHE: SHRI KULDEEP RAI SHARMA:

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

- a.  Whether in the year 2022 the Indian farmers experienced implicit taxation totaling $ 169 billion;
- b.  If so, the details thereof and the reasons therefor and the corrective, steps taken in this regard,
- c. Whether the farmers in the country are not able to sell their crops and are not getting remunerative price which is 50% than the input costs and value of production as per the Swaminathan Report as promised by the Government;
- d.  If so, the details thereof and the steps taken by the Government;
- e.  Whether the Government has raised the farm credit target to Rs. 20 lakh crore for 202324 and if so, the details for the proposal and plan;
- f. Whether it is a fact that the agricultural sector faces several issues such as low growth, high incidence of indebtedness among farmers, high cost of inputs, fragmented land holdings and a lack of capital investments; and
- g.  If so, the action taken by the Government for utilization of 100 percent funds for the welfare scheme therefor?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण मंũी

(SHRI NARENDRA SINGH TOMAR)

(a) & (b): The  OECD  in  its  report  titled  'Agricultural  Policy  Monitoring  and Evaluation  2023',  has  estimated  the  net  support  to  agriculture,  using  specific methodologies  and  assumptions.  The  estimated  support  to  agriculture  is  OECD's independent estimate.

The Government has adopted and implemented several policies, developmental programmes, schemes and reforms for achieving higher incomes for the farmers, which are as follow:

- i. Supplementary income transfers under PM-KISAN of Rs. 6000/- per year in threeequal instalments to eligible beneficiaries.
- ii. Increase in Minimum Support Price (MSPs) for all Kharif& Rabi crops ensuring a minimum of 50 percent of profit margin on the cost of production.
- iii. Crop insurance under Pradhan Mantri FasalBimaYojna (PMFBY).
- iv. Better access  to irrigation under  Pradhan  MantriKrishiSinchayeeYojana (PMKSY).
- v. Special attention for creation of infrastructure through Agri Infrastructure Fund (AIF) with a size of Rs. 100,000 crores.
- vi. New procurement policy under PM-AASHA in addition to FCI operations.
- vii. Kisan  Credit  Cards  (KCC)  offering  production  loan  to  even  dairy  &  fishery farmers besides agricultural crops.
- viii. Formation and promotion of 10,000 Farmer Producer Organisations (FPO).
- ix. National Mission for Sustainable Agriculture (NMSA), which aims to evolve and implement strategies to make Indian agriculture more resilient to the changing climate.
- x. Adoption of drone technologies in agriculture which has potential to revolutionize the Indian Agriculture.
- xi. Benefits accruing under Bee-Keeping, RashtriyaGokul Mission, Blue Revolution, Interest Subvention Scheme, Agro-forestry, Restructured Bamboo Mission, implementation of new generation watershed guidelines, etc.
- xii. Focus on application of digital technology at all stages of agricultural value chain.
- xiii. Supply of fertilizer to farmer at subsidized price so as to reduce input cost.
- xiv. Production and availability of quality seeds to farmers.
- xv. Mahatma Gandhi National Rural Employment Guarantee Scheme(NREGS) has resulted in the enhancement of livelihoodsecurity.

(c) & (d): The  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22 mandated agricultural crops and Fair & Remunerative Price (FRP) for sugarcane on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP),  after considering the  views  of  the  State  Governments  and  Central Ministries/Departments  concerned.   While  recommending  MSPs  for  crops,  CACP factors in the input cost incurred by the farmers. National Commission on Farmers (NCF), constituted under the Chairmanship of Prof. M.S. Swaminathan in 2004, inter alia, recommended that, 'MSP should be at least 50 percent more than the weighted average cost of production'. To give effect to this recommendation, Government, in its Union Budget for 2018-19, had made an announcement to keep MSP at a level of one and half times of the cost of production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif, Rabi and other commercial crops have been fixed with a margin of at least 50 per cent over all India weighted average cost of production since the year 2018-19.

Further, to realise the objective of MSP policy, Government extends price support for paddy and wheat through the Food Corporation of India (FCI) and State Agencies. Under this policy, whatever food grains are offered by farmers within the stipulated period & conforming to the specifications prescribed by Government, are purchased at MSP by the State Government agencies including FCI for Central Pool. Additionally, Oilseeds,  pulses  and  copra  of  Fair  Average  Quality  (FAQ)  are  procured  from registered farmers under Price Support Scheme under Umbrella Scheme of Pradhan MantriAnnadataAaySanraksHanAbhiyan (PM-AASHA), as per its prescribed guidelines.

(e): Yes,Sir.

Region-wise allocation of agriculture credit target for the  year  2023-24is  as under:

(Rs in crore)

| Region               | Cooperative Banks   | Regional Rural Banks (RRBs)   | Commercial Banks   | Total     |
|----------------------|---------------------|-------------------------------|--------------------|-----------|
| Northern Region      | 75,409              | 56,054                        | 2,70,559           | 4,02,022  |
| North Eastern Region | 1,153               | 3,065                         | 20,505             | 24,723    |
| Eastern Region       | 33,486              | 46,179                        | 1,75,125           | 2,54,790  |
| Central Region       | 45,511              | 73,061                        | 2,37,211           | 3,55,782  |
| Western Region       | 46,042              | 31,071                        | 2,02,865           | 2,79,978  |
| Southern Region      | 58,400              | 90,570                        | 5,33,734           | 6,82,704  |
| Total                | 2,60,000            | 3,00,000                      | 14,40,000          | 20,00,000 |

(f) & (g): Agriculture is a state subject. However, Government of India is actively supporting  and  supplementing  efforts  of  state  governments  by  implementing  a comprehensive range of central sector and centrally sponsored schemes including Mission  for  Integrated  Development  of  Horticulture  (MIDH),  Rashtriya  Krishi  Vikas Yojana (RKVY), Bhartiya Prakritik Krishi Paddhati (BPKP) under Paramparagat Krishi Vikas Yojna (PKVY) and Per Drop More Crop (PDMC).The efforts of Government in positive implementation of these schemes have yielded remarkable results towards improving agricultural productivity and growth, reducing financial burden, enhancing economic wellbeing and augmenting the income of the farmers. During the past five years,  Gross  Value  Added  (GVA) in  agriculture  has  registered  an  average  annual growth rate of 4%.

The expenditure on farmer's welfare has increased in 2022-23 (RE)to nearly 6.5 lakh crore.Also,  there  are many schemes implemented by other Ministries and Departments  of  the  Government  of  India  for  rural  areas  where  majority  of  the beneficiaries are farmers. These include  Pradhan MantriAwasYojana-Rural(PMAY), Pradhan  Mantri  Gram  SadakYojana  (PMGSY),  Mahatma  Gandhi  National  Rural Employment GuaranteeProgramme(MNREGS), National Social Assistance Programme(Pension), National Rural Livelihood Mission (NRLM), Pradhan MantriKrishiSichaiYojana (PMKSY) and Jal Jeevan Mission / National Rural Drinking Water Programme, etc.

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