Press Information Bureau

Introduction

The Indian government is transforming the agricultural sector through various initiatives and schemes. These efforts aim to create income opportunities for farmers and enhance agricultural productivity, including credit and insurance support, among other objectives.

The Indian government has consistently and dedicatedly endeavoured to support farmers and empower them, as Aatmanirbhar Kisan lays the foundation of Aatmanirbhar Bharat.

 Unprecedented Budget Allocation to the Agriculture Sector

Since 2014, the government has significantly increased the agriculture budget. In 2013-14, the Department of Agriculture and Farmers' Welfare had a budget allocation of Rs. 21,933.50 cr. This amount has been raised over 5.5 times to Rs. 1,22,528.77 crore for 2024-25.[1]

Maximising MSP Outreach

To enhance the reach of the Minimum Support Price (MSP) to farmers, the government has established a committee to improve the MSP system's effectiveness and transparency. This committee is tasked with evaluating the feasibility of granting greater autonomy to the Commission for Agricultural Costs and Prices (CACP) and recommending ways to make its operations more scientific.

Each year, the Government of India announces MSPs for 22 major agricultural commodities, including 14 Kharif crops, 6 Rabi crops, and 2 commercial crops. Additionally, MSPs are set for Toria and de-husked coconut based on the MSPs of rapeseed, mustard, and copra, respectively.

 Key Schemes in Agriculture and Allied Sector

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Introduced on February 24, 2019, PM-KISAN provides Rs.6,000 annually to landholding farmers in three instalments via Direct Benefit Transfer (DBT). Till August 2024, Rs. 3.24 lakh crores have been distributed to over 11 crore beneficiaries.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): PMFBY was launched in 2016, addressing problems of high premium rates for farmers and reduction in sum insured due to capping. In the past 8 Years of implementation – 62.60 crore farmer applications enrolled and over 17.80 crore (Provisional) farmer applicants have received claims of over Rs. 1,60,838 crore. During this period nearly Rs.32,280 crore was paid by farmers as their share of premium against which claims over Rs.1,63,518.70 crore (Provisional) has been paid to them. Thus, for every 100 rupees of premium paid by farmers, they have received about Rs. 498 as claims.

• Pradhan Mantri Kisan MaanDhan Yojana (PM-KMY): Launched on September 12, 2019, PM-KMY provides financial security for vulnerable farmers. Farmers aged 18-40 contribute Rs. 55-200 monthly, matched by the government, to receive a Rs. 3,000 monthly pension upon reaching age 60.

• Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA): It is an umbrella that includes the Price Support Scheme (PSS), the Price Deficiency Payment Scheme (PDPS), and the Private Procurement and Stockist Scheme (PPSS). Under PM-AASHA, states and UTs can select PSS or PDPS for a particular oilseed crop during a procurement season across the entire state. Pulses and copra are procured through PSS, with pilot PPSS programs allowed in select districts. Central nodal agencies handle the procurement of commodities at MSP by state government guidelines, involving private stockists for oilseeds.

 Other Reforms to Support Farmers

Namo Drone Didi: The government has approved the Central Sector Scheme to provide drones to Women Self Help Groups (SHGs) from 2024-25 to 2025-26, with a budget of Rs. 1,261 crores. The scheme aims to equip 15,000 SHGs with drones for rental services to farmers for applying fertilisers and pesticides. Women SHGs will receive 80% financial assistance for the cost of drones and accessories, up to Rs. 8 lakhs. The remaining cost can be covered through loans from the National Agriculture Infrastructure Financing Facility (AIF), with a 3% interest subvention. This initiative is expected to generate additional income of at least Rs. 1 lakh per year for the SHGs.

Formation & Promotion of 10,000 FPOs: In 2020, the government launched a scheme with a Rs. 6,865 crore budget to form and promote 10,000 Farmer Producer Organizations (FPOs). So far, 8,872 FPOs have been registered, supported by Implementing Agencies and Cluster-Based Business Organizations.

Institutional credit target to Agriculture: Institutional credit to agriculture has more than doubled since 2014-15, rising from Rs 8 lakh crore to Rs 20 lakh crore in 2023-24. The disbursement of easy and concessional crop loans has also more than doubled over this period, increasing from Rs 6.4 lakh crore in 2014-15 to Rs 14.79 lakh crore in 2023-24.

Conclusion

The government, led by the Prime Minister, has launched landmark agricultural initiatives that lay the groundwork for India's vision in 2047. These efforts are integral to the nation’s broader economic strategy. The Indian economy has made impressive strides, becoming the world’s fifth-largest economy in just a decade since 2014. With continued focus on agriculture and innovation, India is poised to become the third-largest economy globally, driving sustainable growth and development.

References

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2035618
https://pib.gov.in/PressReleasePage.aspx?PRID=2044754
https://sansad.in/getFile/loksabhaquestions/annex/182/AU2503_0B48R1.pdf?source=pqals
https://sansad.in/getFile/loksabhaquestions/annex/182/AU2471_yjsvfx.pdf?source=pqals
https://sansad.in/getFile/loksabhaquestions/annex/182/AS107_YQPOE5.pdf?source=pqals
https://nahep.icar.gov.in/

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Santosh Kumar/ Ritu Kataria/ Abhinandan Sharma

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