Benefits of Schemes to Indian Farmers 

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Agriculture in India
Agriculture in India
Benefits of Schemes to Farmers 

Government Schemes are intended to help all farmers across the country and roughly 85 per cent of the total operational holdings in the country (about 43 per cent of the gross cropped area) are in the Small and Marginal Farmers (SMFs) category.  As far as the issue of such farmers qualifying for loans is concerned, the Govt. has taken several measures to facilitate their access to institutional credit including inter-alia:-

  1. The Reserve Bank of India (RBI) has issued Priority Sector Lending Guidelines    (PSL), which mandate all Domestic Scheduled Commercial Banks to earmark 18% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposure (OBE), whichever is higher, as on the corresponding date of the previous year, for lending to Agriculture and within the 18 percent target for agriculture, a sub-target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, (whichever is higher) has been prescribed for SMFs.
  1. As per PSL guidelines, loans to distressed farmers to repay non-institutional lenders are eligible under priority sector. Besides loans to stressed persons (other than farmers) not exceeding Rs. 1,00,000/- per borrower to repay their debt to non-institutional lender are also eligible for the purpose of priority sector lending by banks.
  1. The Kisan Credit Card (KCC) Scheme enables eligible farmers to draw cash through ATM enabled debit card to purchase agricultural inputs such as seeds, fertilisers, pesticides as well as meet other agricultural and consumption needs.
  1. To bring small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional credit, Joint Liability Groups (JLGs) have been promoted by banks. The Government also promotes formation of Farmer Producer Organisations (FPOs) in a big way to enable farmers to leverage economies of scale, not only for agricultural inputs but also for enhanced marketing opportunities.
  2. Vide RBI’s circular dated 18th June, 2010 the Banks have been advised to waive margin/security requirements of agricultural loans upto Rs.1,00,000/-.
  3. Further, with respect to lessee cultivators (tenant farmers), since leases are informal and may not constitute appropriate legal document for purposes of loan from institutional sources, the NITI AAYOG has formulated Model Agricultural Land Leasing Act, 2016 to provide a legal and institutional framework for legalisation of agricultural land leasing. This is with a view to facilitate financial institutions to advance agricultural loans to lessee cultivators. Following NITI AAYOG’s Model Act, Uttrakhand and Uttar Pradesh have legalised land leasing. 

The Government of India fixes Minimum Support Price (MSP) for both Kharif and Rabi crops based on the recommendations of the Commission on Agriculture Costs & Prices (CACP). The Commission collects & analyses data on cost of cultivation and recommends MSP.  While recommending its Price Policy, the CACP considers all costs in a comprehensive manner.  The costs include all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.  Hence the costs considered are very comprehensive and based on the methodology recommended by Expert Committees from time-to-time. 

In the Union Budget for 2018-19, the Government had announced that MSP for all Kharif crops not hitherto covered will be 1.5 times the cost of production.  This was followed by Government decision of 4th July, 2018 to increase MSPs for all Kharif crops for 2018-19 season at a level of at least 150 percent of the cost of production. 

The MSP declared during 2012-13 to 2018-19 for various crops is Annexed.

 Further, to inculcate discipline for timely repayment of short term crop loans  Government has also provided for prompt repayment incentive under Interest Subvention Scheme (ISS). 

ANNEXURE

Lok Sabha Unstarred Question No. 2120 due for 31.07.2018 regarding

‘Benefit of Schemes to Farmers’  (7 years MSP Statement)

              (Rs per quintal)  
S. No. Commodity Variety 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
  KHARIF CROPS                
1 PADDY Common 1250 1310 1360 1410 1470 1550 1750
    Grade ‘A’ 1280 1345 1400 1450 1510 1590 1770
2 JOWAR Hybrid 1500 1500 1530 1570 1625 1700 2430
    Maldandi 1520 1520 1550 1590 1650 1725 2450
3 BAJRA   1175 1250 1250 1275 1330 1425 1950
4 MAIZE   1175 1310 1310 1325 1365 1425 1700
5 RAGI   1500 1500 1550 1650 1725 1900 2897
6 ARHAR(Tur)   3850 4300 4350 4625^ 5050^^ 5450^ 5675
7 MOONG   4400 4500 4600 4850^ 5225^^ 5575^ 6975
8 URAD   4300 4300 4350 4625^ 5000^^ 5400^ 5600
9 COTTON Medium Staple 3600 3700 3750 3800 3860 4020 5150
    Long Staple 3900 4000 4050 4100 4160 4320 5450
10 GROUNDNUT IN SHELL   3700 4000 4000 4030 4220* 4450^ 4890
11 SUNFLOWER SEED   3700 3700 3750 3800 3950* 4100* 5388
12 SOYABEEN Black 2200 2500 2500  –  –  –
    Yellow ## 2240 2560 2560 2600 2775* 3050^ 3399
13 SESAMUM   4200 4500 4600 4700 5000^ 5300* 6249
14 NIGERSEED   3500 3500 3600 3650 3825* 4050* 5877
  RABI CROPS                
15 WHEAT   1350 1400 1450 1525 1625 1735  
16 BARLEY   980 1100 1150 1225 1325 1410  
17 GRAM   3000 3100 3175 3500** 4000^ [email protected]  
18 MASUR (LENTIL)   2900 2950 3075 3400** [email protected] 4250*  
19 RAPESEED/MUSTARD   3000 3050 3100 3350 3700* 4000*  
20 SAFFLOWER   2800 3000 3050 3300 3700* 4100*  
21 TORIA   2970 3020 3020 3290 3560 3900*  
  OTHER CROPS                
22 COPRA Milling 5100 5250 5250 5550 5950 6500 7511
  (Calender Year) Ball 5350 5500 5500 5830 6240 6785 7750
23 DE-HUSKED COCONUT  (Calender Year)   1400 1425 1425 1500 1600 1760 2030
24 JUTE   2200 2300 2400 2700 3200 3500 3700
25 SUGARCANE#   170 210 220 230 230 255 275
 

 

#

Fair and remunerative price.              
## Single MSP of Soyabean (yellow) is recommended by CACP since 2015-16,  as black variety of soyabean is no longer
   Cultivated in major producing states.  Since 2015-16,MSP of Soyabean yellow is also applicable to black variety
* Including Bonus of Rs. 100 per quintal.              
** Including Bonus of Rs. 75 per quintal .              
^ Including Bonus of Rs. 200 per quintal.              
^^ Including Bonus of Rs. 425 per quintal.              
@ including bonus of Rs. 150 per quintal              

This Information was given by the Minister of State for Ministry of Agriculture & Farmers Welfare Shri Gajendra Singh Shekhawat