Lok Sabha Question No. 3910 (UNSTARRED), answered on 2025-08-12
Subject: Loan Wavier Schemes for Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Utkarsh Verma Madhur

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

## LOK SABHA UNSTARRED QUESTION NO. 3910

TO BE ANSWERED ON THE 12 th  August, 2025

## LOAN WAVIER SCHEMES FOR FARMERS

3910. SHRI UTKARSH VERMA MADHUR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:

(a) whether there is a proposal to procure all crops at MSP as per C2+50% rate, if not, the reasons therefor;

(b) the details of Comprehensive Loan Waiver Scheme for farmers and farm labourers to get relief from indebtedness, farmer suicides and distress migration; and

(c)  the  details  of  Comprehensive  Insurance  Scheme  under  public  sector  for  all  crops and animal husbandry?

## ANSWER

MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसानकʞाण राǛमंũी (SHRI RAMNATH THAKUR)

(a):  Every  year,  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  mandated agricultural  crops  for  the  country  as  a  whole,  based  on  the  recommendations  of  the Commission for Agricultural  Costs  &  Prices  (CACP),  after  considering  the  views  of  the State Governments and Central Ministries/Departments concerned.

The Union Budget for 2018-19 had announced the pre-determined principle  to keep  MSPs  at  levels  of  one  and  half  times  of  the  cost  of  production.  Accordingly, Government had increased MSPs for all  mandated Kharif, Rabi  and  other Commercial crops  with  a  minimum  return  of  50  percent  over  all  India  weighted  average  cost  of production from year 2018-19 onwards.

(b):     Presently, no scheme for loan waiver is in operation in the Department of Agriculture &  Farmers  Welfare.  However,  farmers  are  provided  significant  support  through  other schemes  such  as  PM  Kisan,  Minimum  Support  Price  (MSP),  Pradhan  Mantri  Fasal BimaYojana  and  Modified Interest Subvention Scheme  to  address  their financial vulnerability in a structured manner.

(c):   The Pradhan Mantri Fasal Bima Yojna (PMFBY) was introduced in the country from Kharif  2016  season.  The  scheme  provides  financial  support  to  farmers  suffering  crop loss/damage arising out of natural calamities, adverse weather incidence and to stabilize the income of farmers etc.  Since inception of the scheme in 2016, farmers paid a total premium of Rs 35,753 Crore Rupees and have received claims of Rs 1.83 lakh Crore Rupees (as on 30.06.2025), which is roughly 5 times the farmers premium paid during the same period.

Government is  implementing an  activity  called  Livestock  Insurance  under  National Livestock Mission (NLM) which is a Centrally Sponsored Scheme in all the districts of the country  with  an  objective  to  manage  and  mitigate  risk  and  uncertainties  by  providing protection mechanism to the farmers & cattle owners against any eventual loss of their animals due to death.

It  includes  insurance  of  indigenous  /  crossbreed  milch  animals,  pack  animals (Horses, Donkey, Mules, Camels, Ponies and male animals of Cattle/Buffalo) and other livestock (Goat, Sheep, Pigs, Rabbit, Yak and Mithun) are covered under the purview of the Livestock Insurance. Benefit of subsidy is restricted to 10 cattle units per household all  animals except for pig and rabbit, where the benefit will be remained restricted for 5 cattle units  (1  cattle  unit=10  small  animals).  In  case  of sheep,  goat,  pig  and  rabbit, the benefit of subsidy is restricted based on 'Cattle Unit' and one cattle unit is equal to 10 animals i.e. for sheep, goat, pig and rabbit. For this purpose, 'household' will be defined on  the  same  lines  as  adopted  under  Mahatma  Gandhi  National  Rural  Employment Guarantee Act, 2005.

The  farmer's  share  of  premium  payment  has  been  reduced  to  15%  from  20-50% depending upon the caste and region of settlement. The rest 85% will be shared by the Central  and  State  share  in  the  ratio  60:40  for  states  other  than  Himalayan  and  Northeastern region and 90:10 for the Himalayan and North-Eastern region.

## Achievements of Livestock Insurance Scheme during last Four years

| Financial Year              | Financial Year              | Financial Year              | Financial Year              |
|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| 2021-22                     | 2022-23                     | 2023-24                     | 2024-25                     |
| Fund Released (Rs. In lakh) | Fund Released (Rs. In lakh) | Fund Released (Rs. In lakh) | Fund Released (Rs. In lakh) |
| 3324.31                     | 2491.6                      | 2229.58                     | 3651.53                     |
| No. of animals insured      | No. of animals insured      | No. of animals insured      | No. of animals insured      |
| 4,63,046                    | 11,85,740                   | 9,67,632                    | 26,69,711                   |

*****