Lok Sabha Question No. 422 (STARRED), answered on 2025-04-01
Subject: Capital Investment in Agriculture
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Parshottambhai Rupala

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

## LOK SABHA STARRED QUESTION No. 422

TO BE ANSWERED ON THE 1 ST  APRIL, 2025

## CAPITAL INVESTMENT IN AGRICULTURE

- *422.     SHRI PARSHOTTAMBHAI RUPALA:

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

(a) The current level of capital investment in agriculture, including the allocation of funds for irrigation, fertilizers, and other inputs; (b)  the  measures  taken  by  the  Government  to  enhance  private  capital  investment  in agriculture, including the provision of incentives and subsidies; (c) the details of the schemes and programs implemented by the Government to promote agricultural  investment,  including  the  Agriculture  Infrastructure  Fund  and  the  Farmers' Welfare Scheme; and

- (d) the allocation of funds for agricultural investment in the current financial year?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

(a) to (d): A statement is laid on the Table of the House.

## STATEMENT IN RESPECT OF PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO. 422 FOR 1 st  APRIL, 2025 REGARDING CAPITAL INVESTMENT IN AGRICULTURE.

(a) to (d): Capital  Investment  in  Agriculture  involves  enhancing  the  physical  and human capital in the agricultural sector to improve productivity and efficiency.  Investments in  Agriculture  are  aimed  at  Infrastructure  Development  in  irrigation  systems,  use  of advanced machinery, high-yielding seeds, pesticides including insecticides,  herbicides, nematicides and creating scientific storage facilities to minimize post-harvest losses and processing facilities for value addition.

Govt of India implements many central sector and centrally sponsored schemes and initiatives through various Ministries and Departments such as, Agriculture Infrastructure  Fund  (AIF),  Rashtriya  Krishi  Vikas Yojana  , Mission  for  Integrated Development for Horticulture , Agriculture Marketing Infrastructure, National Mission for Edible Oils - Oil Palm, e-NAM Online Platform, PMKSY ( PM Kisan Sinchayee Yojana), Per  Drop  More  Crop  ,    PM-FME,  National  Mission  on  Natural  Farming,  Formation  & Promotion of new 10,000 FPOs, The National Beekeeping and Honey Mission (NBHM), Creation of a Start-up Eco system in  agriculture and allied sector, Measures taken for promotion  of  millets,  National  Bamboo  Mission,  Modified  Interest  Subvention  Scheme (MISS)  and  Pradhan  Mantri  Kisan  Samman  Nidhi  (PMKISAN)  etc.  to  enhance  the production and productivity of farm produce and also minimize the post-harvest losses to ensure better realization  of prices  for farmers and boosting the rural economy through capital investments in agriculture sector. The details of Schemes and budget allocation are given in Annexure.

Further, in the year 2013-14, the budget allocation of the Department of Agriculture and Farmers' Welfare was only 21933.50 crore. This has increased by more than 5.98 times to Rs. 131195.21 crore in 2024-25. In addition, the Government of India supplements the efforts of States through appropriate policy measures and budgetary support through various Centrally Sponsored Schemes. Successful implementation of these Schemes has resulted  in  record-high  food  grain  production  in  the  country,  rising  from  263.5  MMT  in 2013-14 to 331 MMT in 2024-25.

So far as allocation of funds for Fertilizers subsidy is concerned, the Department of Fertilizers has allocated Rs. 1,77,129.50 crores during the FY 2024-25.

As  regards  irrigation,  Pradhan  Mantri  Krishi  Sinchayi  Yojna  (PMKSY)  is  an umbrella  scheme,  consisting  of  two  major  components  being  implemented  by  the Department of Water Resources, River Development & Ganga Rejuvenation, Ministry of

Jal Shakti, namely, Accelerated Irrigation Benefit Programme (AIBP), and Har Khet Ko Pani  (HKKP).  HKKP,  in  turn,  consists  of  four  sub-components:  (i)  Command  Area Development & Water Management (CAD&WM); (ii) Surface Minor Irrigation (SMI); (iii) Repair, Renovation and Restoration (RRR) of Water Bodies; and (iv) Ground Water (GW) Development.

Department  of  Water  Resources,  River  Development  &  Ganga  Rejuvenation, Ministry of Jal Shakti, deals with AIBP and CADWM component of PMKSY. An amount of Rs. 18,075 crore has been released as central assistance under PMKSY-AIBP and an assistance of Rs. 3128.79 crore has been released for CADWM works since April, 2016. Further, an amount of Rs. 5708.61 Crore has been released under PMKSY-SMI&RRR and Rs. 978 crore has been released in GW component of Scheme since April 2016. Revised  estimate  for  2024-25  for  PMKSY-AIBP  component  is  Rs.  2,040  crore  and CAD&WM component is Rs. 100 crore respectively

A  Micro  Irrigation  Fund  (MIF)  of  the  initial  corpus  of  Rs  5000  crore  has  been created with NABARD with the major objective of facilitating the States in mobilizing the resources for  expanding  coverage  of Micro  Irrigation.  Under  the  funding  arrangement, NABARD lends to the States/UTs at a 3% lower interest rate than the corresponding cost of funds mobilized by NABARD from the market. The interest subvention on the loan under MIF is borne by the Centre under PDMC.  Projects with loans under MIF worth Rs 4710.96 crore  have  been  approved  so  far.  Loans  amounting  to  Rs.  3639.48  crore  have  been disbursed to the States of Andhra Pradesh, Tamil Nadu, Gujarat, Punjab, Haryana, and Rajasthan. The Ministry provides interest subvention on the loan availed by the States, which is met from the PDMC Scheme. As per the Budget 2021-22, the corpus of the fund is to be doubled to Rs. 10000 crores.

Agriculture Infrastructure Fund (AIF) was launch in 2020 with a vision to transform the agricultural infrastructure landscape of the country. The Agriculture Infrastructure Fund is  a  medium-long-term debt financing  facility for  investment in  viable  projects  for postharvest management infrastructure and community farming assets. Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention  of  3%  per  annum  and  credit  guarantee  coverage  under  CGTMSE  and NABSanrakshan for loans up to Rs. 2 Crores. The Fund of Rs. 1 lakh crore under the scheme will be disbursed 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.

As of 28th February 2025, Rs. 59,943 Crores have been sanctioned for 98,744 projects under AIF. These sanctioned projects have mobilized an investment of Rs 96,680 Crores  in  the  agriculture  sector.  Major  projects  sanctioned  under  AIF  include  25,671 custom hiring centres, 20216 primary processing units, 15125 warehouses, 3534 sorting

&  grading  units,  2,265  cold  store  projects,  around  31,933  other  kinds  of  post-harvest management projects, and viable farming assets.

An  impact  assessment  study  was  also  conducted  using  conventional  survey methodology collecting data from 500 beneficiaries spread across 8 states. (1 each from North,  South,  West,  East,  Central,  North-East,  and  2  low-performing  states).  States covered  under  the  study  were:  Punjab,  West  Bengal,  Assam,  Madhya  Pradesh,  Uttar Pradesh, Maharashtra, Tamil Nadu, and Rajasthan. Nearly 556 LMT of storage capacity is added through AIF projects, and more than 12 Lakh employment opportunities have been generated in the agriculture sector.

PM Kisan Sampada Yojana implemented by Ministry of Food Processing Industries is  expected  to  leverage  investment  to  benefit  farmers  and  generate  direct/indirect employment  in  the  country.  1608  projects  for  setting  up  of  different  types  of  food processing (including Food Testing Labs and R&D projects) have been sanctioned till 28th February, 2025. under various sub-schemes of PMKSY. Out of this, 1103 projects have been completed, created direct/ indirect employment of 4.24 lakhs, and benefitted 33.37 Lakh farmers and processing capacity of 195.98 Lakhs MT & preservation capacity of 48.96  LMT/annum till  28.02.2025. The  projects  of PMKSY  are  of  value  Rs. 31,080.48 crores, leveraging private investment of Rs. 22,159.31 crores. PMFME has assisted more than 3.27 lakh SHGs and 1,27,758 individuals with credit linkages till 28th February, 2025.

PM-KUSUM Scheme of MoNRE was launched by the Government in March, 2019 to provide financial support to the farmers for installation of standalone solar pumps and solarization of existing grid-connected agriculture pumps, and to install solar power plants on their barren/ fallow/ agriculture land. The scheme has three Components:

(i.) Component 'A': Setting up of 10,000 MW of Decentralized Ground/ Stilt Mounted Grid Connected Solar or other Renewable Energy based Power Plants by the farmers on their land;

- (ii) Component 'B': Installation of 14 lakh standalone off-grid solar water pumps; and

(iii) Component 'C': Solarization of 35 lakhs existing grid-connected agriculture pumps and through feeder level solarization (FLS).

The PM KUSUM scheme is being implemented in all States/ UTs. It is a demand driven  scheme.  The  capacities  are  allocated  based  on  demand  received  from  the States/UTs. The responsibility of beneficiary selection and implementation is of the State Implementing  Agency  (SIA).  All  the  Components  of  PM  KUSUM  scheme  are  covered under AIF. During FY 24-25, the Revised Estimate of PM KUSUM scheme is Rs 3,025 Cr.

## 1. Details of schemes being implemented by DA&FW, Government of India for welfare of farmers

Government of India is implementing a comprehensive range of central sector as well as centrally sponsored schemes and programmes for the welfare of farmers in the country. The list of schemes being implemented by Department of Agriculture& Farmers' Welfare (DA&FW) is as under:

## I. Central Sector Schemes

1.  Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
2.  Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
3.  Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
4.  Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme (RWBCIS)
5.  Modified Interest Subvention Scheme (MISS)
6.  National Bee Keeping and Honey Mission (NBHM)
7.  Agriculture Infrastructure Fund (AIF)
8.  Formation and Promotion Of 10,000 Farmer Producer Organizations (FPOs)
9.  Agri Fund for Start Ups & Rural Enterprises (AgriSURE)
10.  Namo Drone Didi

## II. Centrally Sponsored Scheme

- (a)  National Mission on Natural Farming (NMNF)
- (b) Krishonnati Yojana
1.  Integrated Scheme for Agriculture Marketing -National Agriculture Market (ISAMeNAM)
2.  Integrated Scheme for Agricultural Marketing-Others (ISAM-Others)
3.  National Food Security and Nutrition Mission (NFSNM)
4.  National Mission on Edible Oil-Oil Seeds (NMEO-OS)
5.  National Mission on Edible Oil-Oil palm (NMEO-OP)
6.  Mission for Integrated Development of Horticulture (MIDH)
7.  Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
8.  Sub-Mission on Agricultural Extension (SMAE)
9.  Digital Agriculture

## (c) Rashtriya Krishi Vikas Yojana (RKVY)

1.  Rashtriya Krishi Vikas Yojana- DPR (RKVY-DPR)
2.  Paramparagat Krishi VikasYojana (PKVY)
3.  Per Drop More Crop (PDMC)
4.  Soil Health and Fertility
5.  Rainfed Area Development (RAD)
6.  Agroforestry
7.  Sub-Mission on Agricultural Mechanization (SMAM)
8.  Crop Residue Management (CRM)
9.  Crop Diversification Programme (CDP)

## 2. The details of allocation of funds for the schemes during 2024-25:

| S.no   | Name of Schemes/Description                                                                                            | BE- 2024- 25   | RE-2024-25   |
|--------|------------------------------------------------------------------------------------------------------------------------|----------------|--------------|
|        | Total (Grant No. 01)                                                                                                   | 122528.77      | 131195.21    |
| A      | Central Sector Schemes/projects                                                                                        |                |              |
| 1      | Pradhan Mantri Fasal Bima Yojana                                                                                       | 14600.00       | 15864.00     |
|        | Additional Transfer to agriculture infrastructure Fund and Development (PMFBY)                                         |                | 2000.00      |
| 2      | Modified interest Subvention                                                                                           | 22600.00       | 22600.00     |
|        | Additional Transfer to agriculture infrastructure Fund and Development (MISS)                                          |                | 2000.00      |
| 3      | Market Intervention scheme and price Support scheme (MISS-PSS)                                                         |                | 75.13        |
| 4      | Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (Pm-AASHA)                                                              | 6437.50        | 6437.50      |
| 5      | Distribution of Pulses to state/union territories for welfare schemes                                                  | 300.00         | 300.00       |
| 6      | Pradhan Mantri Kisan Samman Nidhi (PM- KISAN)                                                                          | 60000.00       | 63500.00     |
|        | Additional Transfer to agriculture infrastructure Fund and Development (PM-KISAN)                                      |                | 2000.00      |
| 7      | Pradhan Mantri Kisan Mandhan yojana                                                                                    | 100.00         | 100.00       |
| 8      | Formation and promotion of Farmers producers Organization                                                              | 581.67         | 584.19       |
| 9      | Agriculture Infrastructure Fund                                                                                        | 600.00         | 750.00       |
| 10     | Namo Drone Didi                                                                                                        | 500.00         | 250.00       |
| 11     | Blended Capital Support to Finance Startups for Agriculture and rural Enterprise Relevant for Farm Produce Value Chain | 62.50          | 62.50        |
| 12     | National Bee Keeping Honey Mission (NBHM)                                                                              | 75.00          | 75.00        |

| 13   | Cotton Technology Mission                                 | 0.00      | 0.00      |
|------|-----------------------------------------------------------|-----------|-----------|
| 14   | Mission for Pulses                                        | 0.00      | 0.00      |
| 15   | Mission for Vegetables and Fruits                         | 0.00      | 0.00      |
| 16   | National Mission on Hybrid Seeds                          | 0.00      | 0.00      |
| 17   | Support for Makhana Board                                 | 0.00      | 0.00      |
|      | Additional amount met from Reserve Fund                   | 0.00      | 0.00      |
|      | Total- Central Sector Schemes/Projects                    | 105856.67 | 116598.32 |
| B    | Centrally Sponsored Schemes                               |           |           |
| 1    | Rashtriya Krishi Vikas Yojana (RKVY)                      | 7553.00   | 6000.00   |
| 2    | National Mission on natural Farming                       | 365.64    | 100.00    |
| 3    | Krishionnati Yojana                                       | 7447.00   | 7106.36   |
|      | Total-Centrally Sponsored Schemes                         | 15365.64  | 13206.36  |
|      | Total-Central Sector Schemes+Centrally Sponsored Schemes  | 121222.31 | 129804.68 |
| C    | Establishment and other central expenditure of the Centre | 1306.46   | 1390.53   |
|      | Total (Grant No. 01)                                      | 122528.77 | 131195.21 |

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