Question : SUBSIDY TO FARM SECTOR



(a) whether the Government propose to do away with the subsidies given to the farm sector in the near future;

(b) if so, the amount and percentage of subsidy given to farm sector as on date; and

(c) the items covered under the present scheme and programmes of farm subsidy?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTUR(SHRI SHRIPAD Y. NAIK)

(a): No, Sir.

(b)&(c): As intimated by Central Statistical Organisation, the details of itemwise subsidies provided to Agriculture Sector during the last four years i.e. from 1996-97 to 1999-2000 are annexed. The percentage share of Agriculture Sector subsidies to the total share of Agriculture and Allied Sector in GDP at current prices during the year 1996-97 and 1997-98 was 7.16% and 7.11% respectively.



Annexure

DETAILS OF SUBSIDIES TO AGRICULTURE SECTOR

(Rs. Crore)
Item 1996-97 1997-98 1998-99 1999-2000 (Actuals) (Revised)
Subsidy to agriculture sector through inputs 1 Fertiliser (Total) 7578 9918 11596 13250

1.1 Indigenous fertiliser 4743 6600 7473 8670

1.2 Imported fertiliser 1163 722 333 80

1.3 Sale of decontrolled 1672 2596 3790 4500 Fertiliser with concession to farmers 2 Electricity ++ 8356 6210 N.A. N.A. 3 Irrigation ## 9117 10284 10880+ N.A.
4. Other subsidies given 917 1124 N.A. N.A. to marginal farmers in the form of seeds, dev. of oil seeds, pulses and farmers co-op societies etc.
Source: 1. Fertilisers: Expenditure Budget 2000-2001, Vol.I of Central Government 2. Electricity and Irrigation: Central Statistical Organisation.
Note N.A. Not Available.
++ Electricity includes all subsidies to Electricity Boards and Corporations. Separate estimates of electricity subsidy accountable exclusively to agricultural sector is not available.

## The rates for supply of water to farmers are kept low as a matter of policy, resulting in losses to the Government irrigation system. The excess of operating costs over the gross revenue is treated as imputed irrigation subsidy Quick estimate.