Lok Sabha Question No. 417 (UNSTARRED), answered on 2016-07-19
Subject: Subsidy to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KRUPAL BALAJI TUMANE, BHAVANA GAWALI (PATIL)

O.I.H.

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

## LOK  SABHA UNSTARRED QUESTION NO.417

TO BE ANSWERED ON THE  19 TH  JULY, 2016

## SUBSIDY TO FARMERS

417.   SHRI KRUPAL BALAJI TUMANE: SHRIMATI BHAVANA PUNDALIKRAO GAWALI PATIL:

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

- (a) the number of farmers in the country at present, State-wise;
- (b) whether a majority of small farmers are indebtedness in the country and if so, the details thereof  along with the  efforts being made by the Government to bail them out from debt;
- (c) whether  the  Government  has  formulated  any  policy  for  extending  benefits  of subsidy  and  incentives  to  the  farmers  for  cultivation  of  crops  and  if  so,  the  details thereof; and
- (d) whether the Government proposes to constitute a commission to suggest ways and means of raising farm income on the line of pay commission in the service sector and if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI SUDARSHAN BHAGAT)

- (a) & (b):   As per the Situation Assessment Survey (SAS) of Agricultural Households, conducted by National Sample Survey Office (NSSO) during the agricultural year July 2012 to June 2013, the estimated number of rural agricultural households in the country was  90.2  million.  Out  of  this,  about  47  million  households,  i.e.,  52  percent,  were estimated to be under debt from various sources. State-wise details are at Annexure-I.

About 56 per cent of the small agricultural  households (land  holdings of  1-2 hectare) were estimated to be indebted during the survey period.

Contd…2/-

-2-

Government of India is making efforts for increasing the coverage of institutional credit in the agricultural sector. As against the agricultural credit target of Rs. 8,50,000 crore for 2015-16, a total of Rs. 8,77,224 crore (provisional) has been advanced through commercial  banks,  cooperative  banks  and  regional  rural  banks.  Further,  an  interest subvention  scheme  is  under  implementation  since  2006-07.  Under  the  Scheme,  the farmers who repay their crop loans as per the repayment schedule fixed by the banks enjoy 3 per cent interest subvention. Thus, making their effective interest rate for crop loan  4  per  cent  per  annum.  In  order  to  discourage  distress  sale  by  farmers  and  to encourage them to store their produce, the benefit of interest subvention scheme has been  extended  to  small  and  marginal  farmers  having  Kisan  Credit  Card  for  a  further period  of  upto  six  months,  post-harvest  on  the  same  rate  as  available  to  crop  loan against negotiable warehouse receipts.

(c): The  existing  Schemes  of  the  Government  have  provisions  for  subsidies  on various agricultural inputs such as, seeds, fertilizers, machinery and equipments etc., to incentivize  farmers  in  the  country  for  cultivation  of  crops.  Government  also  fixes Minimum  Support  Prices  (MSP)  for  various  agricultural  crops,  as  an  instrument  to incentivize  farmers  to  bring  more  area  under  cultivation  of  crops  and  to  invest  on increasing  the  productivity.  Details  of  MSP  announced  during  the  last  five  years  are given in Annexure-II.

(d) No, Madam.

## Annexure-I

## State-wise estimated number of indebted Agricultural Households

| State/ Group of UTs*   |   Estimated number of agricultural households (00) |   Estimated number of indebted agricultural households (00) |   Proportion of agricultural households with outstanding loan** |
|------------------------|----------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------|
| Andhra Pradesh         |                                              35968 |                                                       33421 |                                                            92.9 |
| Arunachal Pradesh      |                                               1080 |                                                         206 |                                                            19.1 |
| Assam                  |                                              34230 |                                                        5995 |                                                            17.5 |
| Bihar                  |                                              70943 |                                                       30156 |                                                            42.5 |
| Chhattisgarh           |                                              25608 |                                                        9538 |                                                            37.2 |
| Gujarat                |                                              39305 |                                                       16743 |                                                            42.6 |
| Haryana                |                                              15693 |                                                        6645 |                                                            42.3 |
| Himachal Pradesh       |                                               8811 |                                                        2457 |                                                            27.9 |
| Jammu & Kashmir        |                                              11283 |                                                        3463 |                                                            30.7 |
| Jharkhand              |                                              22336 |                                                        6464 |                                                            28.9 |
| Karnataka              |                                              42421 |                                                       32775 |                                                            77.3 |
| Kerala                 |                                              14043 |                                                       10908 |                                                            77.7 |
| Madhya Pradesh         |                                              59950 |                                                       27414 |                                                            45.7 |
| Maharashtra            |                                              70970 |                                                       40672 |                                                            57.3 |
| Manipur                |                                               1762 |                                                         421 |                                                            23.9 |
| Meghalaya              |                                               3544 |                                                          84 |                                                             2.4 |
| Mizoram                |                                                758 |                                                          47 |                                                             6.2 |
| Nagaland               |                                               2621 |                                                          65 |                                                             2.5 |
| Odisha                 |                                              44935 |                                                       25830 |                                                            57.5 |
| Punjab                 |                                              14083 |                                                        7499 |                                                            53.2 |
| Rajasthan              |                                              64835 |                                                       40055 |                                                            61.8 |
| Sikkim                 |                                                674 |                                                          97 |                                                            14.3 |
| Tamil Nadu             |                                              32443 |                                                       26780 |                                                            82.5 |
| Telangana              |                                              25389 |                                                       22628 |                                                            89.1 |
| Tripura                |                                               2445 |                                                         559 |                                                            22.9 |
| Uttarakhand            |                                              10608 |                                                        5387 |                                                            50.8 |
| Uttar Pradesh          |                                             180486 |                                                       79081 |                                                            43.8 |
| West Bengal            |                                              63624 |                                                       32787 |                                                            51.5 |
| Group of UTs           |                                                718 |                                                         267 |                                                            37.2 |
| All-India              |                                             902011 |                                                      468481 |                                                            51.9 |

Source: Key Indicators of Situation of Agricultural Households in India based on Situation Assessment Survey of Agricultural Households, NSS 70 th round

* Figures in respect of States with negligible sample size are not presented. Due to the same reason, a single estimate is provided for Group of UTs.

** relates to all kinds of outstanding loan irrespective of the purpose for which taken.

## Minimum Support Prices (according to crop-year)

| Sl. No.   | Commodity                         | Variety       | 2012-13   | 2013-14   | 2014-15   | 2015-16   | 2016-17   |
|-----------|-----------------------------------|---------------|-----------|-----------|-----------|-----------|-----------|
|           | KHARIF CROPS                      |               |           |           |           |           |           |
| 1         | PADDY                             | Common        | 1250      | 1310      | 1360      | 1410      | 1470      |
|           |                                   | Grade 'A'     | 1280      | 1345      | 1400      | 1450      | 1510      |
| 2         | JOWAR                             | Hybrid        | 1500      | 1500      | 1530      | 1570      | 1625      |
|           |                                   | Maldandi      | 1520      | 1520      | 1550      | 1590      | 1650      |
| 3         | BAJRA                             |               | 1175      | 1250      | 1250      | 1275      | 1330      |
| 4         | MAIZE                             |               | 1175      | 1310      | 1310      | 1325      | 1365      |
| 5         | RAGI                              |               | 1500      | 1500      | 1550      | 1650      | 1725      |
| 6         | ARHAR(Tur)                        |               | 3850      | 4300      | 4350      | 4425^     | 4625^^    |
| 7         | MOONG                             |               | 4400      | 4500      | 4600      | 4650^     | 4800^^    |
| 8         | URAD                              |               | 4300      | 4300      | 4350      | 4425^     | 4575^^    |
| 9         | COTTON                            | Medium Staple | 3600      | 3700      | 3750      | 3800      | 3860      |
|           |                                   | Long Staple   |           |           |           |           |           |
|           |                                   |               | 3900      | 4000      | 4050      | 4100      | 4160      |
| 10        | GROUNDNUT IN SHELL                |               | 3700      | 4000      | 4000      | 4030      | 4120*     |
| 11        | SUNFLOWER SEED                    |               | 3700      | 3700      | 3750      | 3800      | 3850*     |
| 12        | SOYABEAN                          | Black         | 2200      | 2500      | 2500      | -         | -         |
|           |                                   | Yellow$$      | 2240      | 2560      | 2560      | 2600      | 2675*     |
| 13        | SESAMUM                           |               | 4200      | 4500      | 4600      | 4700      | 4800^     |
| 14        | NIGERSEED                         |               | 3500      | 3500      | 3600      | 3650      | 3725*     |
|           | RABI CROPS                        |               |           |           |           |           |           |
| 15        | WHEAT                             |               | 1350      | 1400      | 1450      | 1525      |           |
| 16        | BARLEY                            |               | 980       | 1100      | 1150      | 1225      |           |
| 17        | GRAM                              |               | 3000      | 3100      | 3175      | 3425**    |           |
| 18        | MASUR (LENTIL)                    |               | 2900      | 2950      | 3075      | 3325**    |           |
| 19        | RAPESEED/MUSTARD                  |               | 3000      | 3050      | 3100      | 3350      |           |
| 20        | SAFFLOWER                         |               | 2800      | 3000      | 3050      | 3300      |           |
| 21        | TORIA                             |               | 2970      | 3020      | 3020      | 3290      |           |
|           | OTHER CROPS                       |               |           |           |           |           |           |
| 22        | COPRA                             | Milling       | 5100      | 5250      | 5250      | 5550      | 5950      |
|           | (Calender Year)                   | Ball          | 5350      | 5500      | 5500      | 5830      | 6240      |
| 23        | DE-HUSKED COCONUT (Calender Year) |               | 1400      | 1425      | 1425      | 1500      | 1600      |
| 24        | JUTE                              |               | 2200      | 2300      | 2400      | 2700      | 3200      |
| 25        | SUGARCANE$                        |               | 170.00    | 210.00    | 220.00    | 230.00    | 230.00    |

- $ Fair and remunerative price.
- ** Bonus of Rs. 75 per quintal is payable over and above the Minimum Support Price .
- ^ Bonus of Rs. 200 per quintal is payable over and above the Minimum Support Price .
- ^^ Bonus of Rs. 425 per quintal is payable over and above the Minimum Support Price .
* Bonus of Rs. 100 per quintal is payable over and above the Minimum Support Price .
- $$     Minimum Support Price of Soyabean yellow is also applicable to black variety during 2015-16 and 2016-17.
- *********

## Annexure-II

(As on 01.06.2016) (Rs. per Quintal)