Lok Sabha Question No. 911 (UNSTARRED), answered on 2016-03-01
Subject: Industry Status to Agriculture Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: A. ARUNMOZHITHEVAN, RAJU ALIAS DEVAPPA ANNA SHETTI

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

## LOK  SABHA UNSTARRED QUESTION NO.911

TO BE ANSWERED ON THE  1 ST  MARCH, 2016

## INDUSTRY STATUS TO AGRICULTURE SECTOR

911.   SHRI A. ARUNMOZHITHEVAN: SHRI RAJU SHETTY:

Will the Minister of AGRICULTURE AND FARMERS WELFARE ‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããè be pleased to state:

- (a) whether the agricultural activities have shown a declining trend in the country for quite some time now;
- (b) if  so,  the  details  thereof  and  the  steps  taken  by  the  Government  to  promote agricultural activities in the country;
- (c) whether there is a long pending demand of the farmers to provide industry status to agriculture sector in the country;
- (d) if  so,  the  details  thereof  and  the  action  taken  by  the  Government  to  accord industry  status  to  the  agriculture  sector  in  order  to  attract  investment  and  enhance growth rate of agriculture;
- (e) whether the Government  proposes  to prepare an 'independent budget' for agriculture; and
- (f) if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE ‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI MOHANBHAI KUNDARIYA )

(a) & (b): Yes, Madam. There has been a decline in the percentage share of Agriculture and  Allied  Sector  in  the  Gross  Value  Added  (GVA)  (earlier  referred  as  Gross  Domestic Product)  from  18.5%  in  2011-12  to  16.3%  in  2014-15  (advance  estimate  released  on 08.02.2016) at constant (2011-12) prices. The falling share of Agriculture and Allied sector is an expected outcome in structurally changing economy. The Government has taken several new initiatives to promote agricultural activities. The strategy is to focus on farmers' welfare by making farming viable. Farm viability is possible, when cost of cultivation is reduced, yields per unit  of  farm  are  increased  and  farmers  get  remunerative  prices  on  their  produce.  The Department has been implementing various schemes to meet this objective.

(i) Soil Health Card (SHC) scheme by which the farmers can know the major and minor nutrients available in their soils which will ensure judicious use of fertilizer application and thus save  money  of  farmers.  The  balanced  use  of  fertilizer  will  also  enhance  productivity  and ensure higher returns to the farmers.

- (ii) Neem Coated Urea is being promoted to regulate urea use, enhance its availability to the crop  and  reduce  cost  of  fertilizer application.  The  entire quantity of  domestically manufactured urea is now neem coated.
- (iii) Paramparagat Krishi Vikas Yojana (PKVY) is being implemented with a view to promote organic farming in the country. This will improve soil health and organic matter content and increase net income of the farmer so as to realize premium prices.

(iv) The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) is being implemented to expand cultivated  area  with  assured  irrigation,  reduce  wastage  of  water  and  improve  water  use efficiency.

Government has also recently approved a new crop Insurance scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY) to replace National Agricultural Insurance Scheme (NAIS) and  Modified  NAIS  (MNAIS)  from  Kharif  2016  season.  PMFBY  has  addressed  all  the shortcomings in the earlier schemes and would be available to the farmers at very low rates of premium. This scheme would provide insurance cover for all stages of the crop cycle including post-harvest risks in specified instances. Some salient features are:-

- (a) Farmers have to pay the lowest ever premium rate.
- (b) There will be a uniform premium rate for farmers for entire country - 2% maximum for Kharif food & Oilseed crops, 1.5% maximum for Rabi food & Oilseed crops and 5% maximum for Annual Horticultural/Annual Commercial crops.
- (c) The remaining financial burden will be borne by the Government.
- (d) Farmers will get full insurance cover-there will be no 'capping' of the Sum Insured and consequently, claim amount will not be cut or reduced.
- (e) For the first time, inundation has been included under localized risk cover, in addition to hailstorm and landslide. Individual farm level assessment of crop loss will be done for this.
- (f) For  the  first  time,  post  harvest  losses  arising  out  of  cyclones  and  unseasonal  rains through out the country have been covered.
- (g) For  the  first  time,  emphasis  has  been  given  to  mobile  and  Satellite  Technology  to facilitate accurate assessment and quick settlement of claims.
- (h) Crop  Insurance  Portal  has  been  launched.  This  will  be  used  extensively  for  better administration, co-ordination, dissemination of information and transparency.
- (i) Coverage of areas to be increased from 23%, at present to 50% in 2 to 3 years.

Further the Government undertakes procurement of wheat and paddy under its 'MSP operations'.  In  addition,  Government  implements  Market  Intervention  Scheme  (MIS)  for procurement  of  agricultural  and  horticultural  commodities  not  covered  under  the  Minimum Price Support Scheme on the request of State/UT Government, in order to protect the growers of these commodities from making distress sale in the event of bumper crop when the prices tend to fall below the economic level/cost of production.

(c) & (d): Government  has  been  receiving  suggestions  from  various  quarters  to  accord status  of  industry  to  agriculture.  However,  Government  seeks  to  bestow  on  the  agriculture sector  as  many  benefits  as  available  to  those  in  the  manufacturing  sector,  such  as,  easy availability of credit and other inputs and infrastructure facilities for development of agriculture sector including marketing and post harvest management. Further, Government has launched a comprehensive crop insurance scheme called 'Pradhan Mantri Fasal Bima Yojana' (PMFBY) which cover the risks-and uncertainties that the farm sector is exposed to.

(e) & (f): Agriculture  is  intrinsically  linked  to  various  other  sectors  like  road,  power, irrigation,  land  revenue  etc.,  which  are  covered  under  the  General  Budget.  It  is,  therefore, necessary to continue to maintain such linkage and hence, a separate budget for agriculture would not be feasible.

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