Lok Sabha Question No. 1516 (UNSTARRED), answered on 2016-07-26
Subject: Subsidies to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KULAMANI SAMAL

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

## LOK  SABHA UNSTARRED QUESTION NO.1516

TO BE ANSWERED ON THE 26 TH   JULY, 2016

## SUBSIDIES TO FARMERS

1516.     DR. KULAMANI SAMAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government is providing subsidies to farmers for improving the infrastructure, marketing facilities and promotional services in the agriculture sector;
- (b) if  so,  the details of schemes under which such subsidies/assistance is being provided; and
- (c) whether the Government proposes to withdraw the provision of subsidy to the agriculture sector  and  if  so,  the  details  thereof  along  with  the  components  of  this  sector  on  which  the provision of subsidy is likely to be withdrawn?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM RUPALA)

- (a): Yes,  Madam.
- (b)  &  (c):        The  Government  is  providing  subsidies  to  farmers  under  various  schemes  for improving the infrastructure, marketing facilities and promotional services.

Under Agricultural Marketing Infrastructure (AMI) sub-scheme of Integrated Scheme for Agricultural  Marketing  (ISAM),  subsidy  is  being  provided  @  25%  to  33.33%  to  eligible beneficiaries for creation of storage infrastructure. Currently the scheme is temporarily stopped w.e.f.  05.08.2014  for  general  category  promoters  due  to  exhaustion  of  funds.  However,  the scheme is open for SC/ST promoters and for promoters in North-Eastern Region.

Under Rashtriya Krishi Viskas Yojana (RKVY) scheme, funds are released to the State Governments as 100% grant on the basis of projects approved in the State Level Sanctioning Committee (SLSC) meeting headed by the Chief Secretary of the State.  No subsidy is provided by the Government of India directly to the individuals/farmers under the scheme.  Subsidy under RKVY scheme is provided to farmers by the States as per norms of other existing Government of India schemes.

Under  National Horticulture Mission (NHM)  scheme  for  development  of  Horticulture, assistance is being provided for development of Post-H+arvest Management (PHM) and Marketing infrastructure.  The  component  of  market  Infrastructure  includes  rural  primary  markets,  wholesale markets and terminal market complexes.

For rural primary markets, credit linked back ended subsidy @ 40% in general areas and @ 55% in hilly and tribal areas of the maximum project cost of  Rs. 25.00 lakh is available.

For wholesale markets, credit linked back ended subsidy @ 25% in general areas and @  33.33%  in  hilly  and  tribal  areas  of  the  maximum  project  cost  of  100.00  crore/project  is available.

For terminal market complex, under PPP mode, assistance @ 25% to 40% (limited to Rs.  50.00  crore)  of  project  cost  of  150.00  crore/project,  which  includes  25%  as  floor subsidy plus 15% as subsidy on bidding is available.

Under  PHM  component,  credit  linked  back  ended  subsidy  @  35%  -  50%  is  available  for creation of various types of post-harvest infrastructure.

Under National Food Security Mission (NFSM), financial assistance is being provided to the farmers for farm machineries for improving the infrastructure.

Under Bringing Green Revolution to Eastern India scheme (BGREI), assistance is being provided  for  activities  that  help  in  enhanced  procurement,  creation  of  storage  facilities, marketing and value addition. Assistance is being provided 50% of the project cost for individual beneficiary and 100% for community assets.

At present, there is no proposal under consideration to withdraw the provision of subsidy in respect of abovementioned schemes.

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