Question : Modified Agricultural Insurance Schemes

(a) whether the Government is considering to spend 55,000 crore on farming and irrigation sector besides rolling out of a crop insurance scheme to address the problem of those engaged in agriculture;

(b) if so, the details thereof;

(c) whether it is a fact that productivity levels are reasonably low and 85 per cent
farmers being small and marginal, the agriculture sector is affecting by the higher input costs, low level of irrigation, high indebtedness, absence of an effective insurance mechanism and adverse impacts of climate change; and

(d) if so, the steps taken/being taken by the Government to make the agriculture a profitable profession?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE

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(a) & (b): The Department of Agriculture & Cooperation (DAC) has allocated Rs. 16646.35 crore for various schemes under the following four main schemes for the year 2015-16 for development of agriculture sector including farming, irrigation and crop insurance.
Rs. in crore
Sl. No. Name of Scheme Allocation (2015-16)
1. Krishionnati Yojana 7523.35
2. National Crop Insurance Scheme 2823.00
3. Rashtriya Krishi Vikas Yojana 4500.00
4. Pradhan Mantri Krishi Sinchai Yojana 1800.00
Total 16646.35

Contd…2/-

-2-
(c) & (d): In the country, the overall food grain production has increased from 218.11 million tonnes in 2009-10 to 251.12 million tonnes in 2014-15 (as per 3rd Advance Estimates as on 13.05.2015) thereby benefiting the farmers. All possible efforts are being made to improve/enhance agricultural production and productivity by implementing various missions/schemes in agriculture sector thereby making agriculture a profitable profession.

In order to provide relief to small and marginal farmers, subsidy is being provided to them under various schemes. In order to address low levels of irrigation, a new comprehensive scheme, namely Pradhan Mantri Krishi Sinchai Yojna (PMKSY) has been launched from the year 2015-16 with the objective of addressing end-to-end solution in irrigation supply chain like water augmentation, micro harvesting distribution network, efficient water use & extension services. The focus will be on ‘har khet ko pani’ and ‘more crop per drop’.

Government is also providing crop loan up to a principal amount of Rs. 3.00 lakh to farmers @ 7% interest. An additional 3% interest subvention is provided to those farmers who repay their loans as per schedule.

To protect the interests of farmers Government declares a Minimum Support Price (MSP) for major crops thereby ensuring a fair return to the farmers.

Further, In order to protect farmers against crop failure due to natural calamities, pests & diseases, weather conditions, Government of India already implementing the National Crop Insurance Programme (NCIP) with component schemes of Modified National Agricultural Insurance Scheme (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS). In addition, National Agricultural Insurance Scheme (NAIS) which was to be withdrawn after implementation of NCIP from Rabi 2013-14, has been extended further.

Besides, improvement in crop insurance schemes to make them more scientific and to better serve the interest of farmers is a continuous process. To make the crop insurance schemes farmers friendly various improvements in consultations with various stakeholders including State Governments have been made in the schemes from time to time to sufficiently compensate the farmers on account of damage of their crops due to natural calamities/adverse weather to provide targeted benefit to the farmers under the Crop Insurance Schemes.

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