Lok Sabha Question No. 2624 (UNSTARRED), answered on 2023-12-19
Subject: Contribution of Agriculture in GDP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Pritam Gopinath Munde, Rahul Ramesh Shewale

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2624

TO BE ANSWERED ON THE 19 th  DECEMBER, 2023

## Contribution of Agriculture in GDP

2624. DR. PRITAM GOPINATHRAO MUNDE: SHRI RAHUL RAMESH SHEWALE: Will the Minister of AGRICULTURE & FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state: (a) whether the economic contribution of agriculture to our GDP is steadily declining with the country's broad-based economic growth and if so, the facts in this regard; (b) whether the current agricultural practices are neither economically nor environmentally sustainable and India's yields for many agricultural commodities are low and if so, the response of the Government thereon; (c) whether poorly maintained irrigation systems and almost universal lack of good extension services are among the factors responsible therefor; (d) whether the farmers' access to markets is hampered by poor roads, rudimentary market infrastructure and excessive regulation; and (e)  if  so,  the  steps  taken  by  the  Government  to  address  these  problems  and  the success achieved so far in this regard? ANSWER MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI ARJUN MUNDA)

(a) The share of Agriculture & Allied sectors in total GVA of the economy from 199091 to 2022-23 is given below

| Year    |   Share of Agriculture & Allied Sector in total GVA |
|---------|-----------------------------------------------------|
| 1990-91 |                                                  35 |
| 2000-01 |                                                  26 |
| 2010-11 |                                                  18 |
| 2020-21 |                                                  16 |
| 2022-23 |                                                  15 |

The  share  of  agriculture  in  total  Gross  Value  Added  (GVA)  of  economy  has declined from 35% in 1990-91 to 15% in 2022-23. The decline is brought out not by the decline in agricultural GVA but a rapid expansion in industrial and service sector GVA. In growth terms, agriculture and allied sector has registered an average annual growth of 4% during last five years. As far as global experience is concerned, share of agriculture in the world's GDP has also declined over the decades and stands at about 4% in recent years.

(b) to (e) Government has adopted/implemented several developmental programmes, schemes, reforms and policies towards increasing agricultural productivity, enhancing resource use efficiency, promoting sustainable agriculture, strengthening infrastructure, ensuring remunerative price to farmers, etc.  These include:

## 1. 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.

## 2. Pradhan Mantri Fasal BimaYojana (PMFBY):

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  being  paid  by insurance  companies directly to farmers account through Digiclaim.

## 3. Institutional credit for agriculture sector:

- i. Increased from Rs. 7.3 lakh crore in 2013-14 to Rs. 21.55 lakh crore in 202223.
- 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.

## 4. 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.

## 5. 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.

## 6. 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.

## 7. 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.

## 8. 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

9. 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".

## 10.   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 202324, 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  HiTech Centres and 82 nos. of Farm  Machinery Banks.

## 11.   Namo Drone Didi:

The  Government  has  also  recently  approved  Central  Sector  Scheme  for providing  drones  to  the  Women  Self  Help  Groups  (SHGs)  with  an  outlay  of Rs.1261  Crores. The scheme aims to provide drones to 15000 selected Women SHGs for  providing rental services to farmers for agriculture purpose (application of  fertilizers   and  pesticides).  Of  the  total  15,000  drones,  first  500  drones  will  be procured  by  Lead   Fertilizer  Companies  (LFCs)  in  2023-24,  using  their  internal resources  for  distribution   to  selected  SHGs.  Remaining  14500  drones  will  be provided under this scheme and 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)  of  SHGs  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 lakhs per annum.

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

## 13.   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 eNAM  platform.

## 14.   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 August,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 lakh ha in Rest of India with a total outlay of Rs.  11,040 crore in next 5 years from 2021-22 to 2025-26.

## 15.   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.

## 16.   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.

## 17.   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.

## 18. 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 instalments to the respective KPs & R-ABIs for funding to these Start-ups under RKVY  Agri-startup Programme of Department of Agriculture & FW.

## 19.   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%.

Additionally, DARE, which is a part of the Ministry of Agriculture & Farmers Welfare,   implemented  schemes  which  have  yielded  remarkable  results  towards augmenting  the   income  of  the  farmers.  Indian  Council  of  Agricultural  Research (ICAR)  has  released  a   book,  which  contains  compilation  of  success  stories  of 75,000 farmers out of  innumerable successful farmers who have increased their income more than two  times.

The expenditure on farmer's welfare in the country has improved manifold in 2022-23  i.e. 6.5 lakh crore was spent in this year alone. Details of spending as per Revised  Estimate by the Central Government during 2022-23 on agriculture and allied sectors  for welfare of farmers are as follows;

| Item of Expenditure Amount (Rs in          |   crore) |
|--------------------------------------------|----------|
| Fertilizer subsidy                         |   225220 |
| Food subsidy                               |   287194 |
| Agriculture & allied activities (Excluding |    76279 |
| PM-KISAN                                   |    60000 |
| Total                                      |   648693 |

*Revised Estimate 2022-23

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