(a) the details of subsidy provided by the Government to the farmers/agricultural
sector of the country during the last three years and the current year;
(b) whether the subsidy being provided to the farmers/agricultural sector in our
country is less than the other developing countries;
(c) if so, the details thereof and the reaction of the Government thereto; and
(d) the steps taken/being taken by the Government in this regard?
The Minister of State in the Ministry of Finance (Shri Namo Narain Meena)
(a) to (d) : Financial assistance/subsidies to farmers are provided by Central Government
and the State Governments under various Schemes/Programmes.
Under the Interest Subvention Scheme, short-term crop loans upto Rs. 3 lakh are being
disbursed by Public Sector Banks(PSBs), Regional Rural Banks(RRBs) and Cooperative Banks
at interest rate of 7% per annum.
Additional subvention is also being extended to such loanees who repay their loan in time.
The additional subvention was 1% in 2009-10, 2% in 2010-11 and 3% in 2011-12 and 2012-13.
The Government has released Rs. 2011 crore in 2009-10, Rs. 3531.19 crore in 2010-11, Rs.
3282.70 crore in 2011-12 and till now Rs 4377.99 crore in 2012-13 towards implementation
of the Scheme.
The number of crop loan accounts have increased from 482.30 lakh in 2009-10 to 646.57 lakh
in 2011-12, registering an increase of 34%. While in the developed countries subsidies are
provided to keep inter-sectoral commercial parity and international competitiveness, in the
developing countries the aim of subsidies is to bring about structural transformation by making
agriculture sector a commercially viable sector. The various schemes of Government of India are
aimed at enhancing productivity in agriculture and farmers income.