Framework for Doubling Farmers Income in India

Agriculture in India
Agriculture in India
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Framework for Doubling Farmers’ Income

By PIB Delhi

The Government had constituted an Inter-ministerial Committee in April, 2016 to examine issues relating to “Doubling of Farmers Income” and recommend strategies to achieve the same. The Committee has submitted its Report to the Government in September, 2018. The Committee on Doubling Farmers’ Income (DFI) recognises agriculture as a value led enterprise and has identified seven major sources of growth, viz., improvement in crop productivity; improvement in livestock productivity; resource use efficiency or savings in the cost of production; increase in the cropping intensity; diversification towards high value crops; improvement in real prices received by farmers; and shift from farm to non-farm occupations.

National Sample Survey (NSS) conducted a Situation Assessment Survey (SAS) of Agricultural Households during its 70th round (January – December 2013) in the rural areas of the country with reference to the agricultural year July 2012- June 2013. Among various indicators related to the agricultural households, the survey collected information on income generated by agricultural households from different economic activities (both farm and non-farm) during the agricultural year July 2012 –June 2013 which is given at Annexure.

 Agriculture being a State subject, the State Governments undertakes development of perspective plans and ensure effective implementation of the programmes/ schemes. Also, Government of India supplements the efforts of the State Governments through various Schemes/ Programmes aimed at improving production, post harvest & management, including progressive agri-market reforms,   access to credit,  risk management and income support. Some important programmes

are as follows:

  1. Kisan Credit Cards provides agriculture credit to farmers at subsidized rates, with a 2% interest

subvention (IS) and Prompt Repayment Incentive (PRI) of 3% so as to make the effective rate of interest as 4%. The initiatives to simplify procedures for availing KCC include:

  1. Activities relating to Animal Husbandry and Fisheries included in KCC – benefits of  IS and PRI also extended
  2. Indian Banker’s Association has waived off processing fee, inspection, ledger folio charges and all other service charges for renewal/fresh issue of KCC.
  3. RBI has raised the collateral free existing agriculture loan limit from Rs.1 lakh to Rs.1.60 lakh.

ii)  With a view to provide better insurance coverage to crops for risk mitigation, Government has launched a crop insurance scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY) from Kharif 2016 season. This scheme provides insurance cover for all stages of the crop cycle including post-harvest risks in specified instances. Claims of Rs. 8,665 crore were paid to 553.01 lakh farmers in the year 2018-19.

iii)    Giving a major boost for the farmers income, the Government has approved the increase in the Minimum Support Price (MSPs) for all Kharif & Rabi crops for 2018-19 season at a level of at least 150 percent of the cost of production.

iv)  With a view to provide income support to all farmers’ families across the country, to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, the Central Government started a new Central Sector Scheme, namely, the Pradhan Mantri Kisan SAmman Nidhi (PM-KISAN). The scheme aims to provide a payment of Rs. 6000/- per year, in three 4-monthly installments of Rs. 2000/- to the farmers, subject to certain exclusions relating to higher income groups.  An amount of Rs. 12646.579 crore has been distributed to 632.32895 lakh farmers in the year 2018-19.

v)   With a view to provide social security net for Small and Marginal Farmers (SMF) as they have minimal or no savings to provide for old age and to support them in the event of consequent loss of livelihood, the Government has decided to implement another new Central Sector Scheme for providing old age pension to these farmers. Under this Scheme, a minimum fixed pension of Rs. 3000/- be provided to the eligible small and marginal farmers, subject to certain exclusion clauses, on attaining the age of 60 years. The scheme aims to cover around 5 crore beneficiaries in the first three years. It would be a voluntary and contributory pension scheme, with entry age of 18 to 40 years. The Government has approved a budgetary provision of Rs. 10774.50 crore for the scheme till March, 2022.      


The Average monthly income (₹)  per agricultural household for different States/ group of UTs for the period July 2012 – June 2013 as per the results of the Situation Assessment Survey of Agricultural Households of NSS 70th round is as under:

State/ Group of UTsincome from wages(₹) net receipt from cultivation(₹)net receipt from farming of animals(₹)net receipt from non-farm business(₹)Totalincome(₹)Number of agricultural households
 Andhra Pradesh2482202210754005979359681151
 Arunachal Pradesh207666471310836108691080312
 Himachal Pradesh40302876104782487778811622
 Jammu &    Kashmir7336306380114831268311283711
 Madhya Pradesh133240167321296210599501925
 Tamil Nadu29021917110010616980324431933
 Uttar Pradesh1150285554337649231804894787
 West Bengal21269792256503980636242556
Group of UTs5179186421313128568715422

Source: Table 1 of Appendix A, NSS Report No.576: Income, Expenditure, Productive Assets and Indebtedness of Agricultural Households in India

Note: State-wise estimates were presented in the report in respect of those States for which number of sample households was at least 300.

 Figures of all UTs have been clubbed together and shown under the head ‘group of UTs’ as sample number of households for each of the UTs was less than 300.

This Information was given by the Union Minister for Agriculture & Farmers Welfare Shri Narendra Singh Tomar in Rajya Sabha today

About Post Author

Suman Munshi

Founder Editor of IBG NEWS (15/Mar/2012- 09/Aug/2018). Recipient of Udar Akash Rokeya Shakhawat Hossain Award 2018. National Geographic & Canon Wild Clicks 2011 jury and public poll winner. Studied Post Graduate Advance Dip in Computer Sc., MBA IT,LIMS (USA & Australia), GxP(USA & UK),BA (Sociology) Dip in Journalism (Ireland), Diploma in Vedic Astrology, Numerology, Palmistry, Vastu Shastra & Feng Sui 25 years in the digital & IT industry with Global MNCs' worked & traveled in USA, UK, Europe, Singapore, Australia, Bangladesh & many other countries. Education and Training advance management and R&D Technology from India, USA, UK, Australia. Over 30 Certification from Global leaders in R&D and Education. Computer Science Teacher, IT & LIMS expert with a wide fan following in his community. General Secretary West Bengal State Committee of All Indian Reporter’s Association
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