Question : Doubling the Income of Farmers


(a) whether the Government has prepared any schemes to double the farmers’ income by 2022 and if so, the details thereof and the present day income of the farmers which the Government proposes to double by the year 2022;

(b) whether the Government has taken into account the rate of inflation in the coming five years to proportionally increase the income by the year 2022, if so, the details thereof and the difficulties before the Government in taking steps to double farmers’ income by 2022;

(c) whether the Government has any mechanism to coordinate with State Governments in this regard, if so, the details thereof;

(d) whether the farmers are not being able to get the remunerative price and profit even after selling their crops at Minimum Support Price because of the troubles and problems faced by them and if so, the details thereof; and

(e) whether the Government is considering to prepare any other scheme to check all these malpractices and if so, the details thereof?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a) to (c): The Government has set a target of doubling of farmers’ income by the year 2022. For the said purpose, the Government had constituted an Inter-Ministerial Committee to examine issues relating to doubling of farmers’ income and recommend strategies. While targeting doubling of farmers income, the Committee has taken into account, economies of scale and the estimate inflationary trends of the future. The Committee has identified seven sources of income 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. It has also suggested strategies for achieving the required growth.
Contd…2/-

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The National Sample Survey Office (NSSO) conducted “Situation Assessment Survey (SAS) of Agricultural Households” during NSS 70th round (January 2013- December 2013) in the rural areas of the country with reference to the agricultural year July 2012- June 2013. The survey estimated the average monthly income per agricultural household as Rs.6426/-. However, the Committee, which has submitted its report, containing the strategy for doubling of farmers income by the year 2022, has extrapolated the results of the year 2012-13 survey to the year 2015-16 at 2015-16 prices and shown that average farmers income stands at Rs. 96,703/- per year.

Agriculture being a State subject, the State Governments undertakes development of perspective plans and ensures effective implementation of the programmes/ schemes. Government of India, on its part, is supplementing the efforts of States by extending necessary financial assistance and technical inputs through its various schemes and programmes. In order to realise net positive returns for the farmer, schemes as follows, are being promoted and implemented in a major way through the States/UTs viz:- Soil Health Card (SHC) scheme; Neem Coated Urea (NCU); Pradhan Mantri Krishi Sinchayee Yojana (PMKSY); Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA); Paramparagat Krishi Vikas Yojana (PKVY); National Agriculture Market scheme (e-NAM); Pradhan Mantri Fasal Bima Yojana (PMFBY); National Food Security Mission (NFSM); Mission for Integrated Development of Horticulture (MIDH); National Mission on Oilseeds & Oilpalm (NMOOP); National Mission for Sustainable Agriculture (NMSA); National Mission on Agricultural Extension & Technology (NMAET) and Rashtriya Krishi Vikas Yojana (RKVY). In addition, schemes relating to tree plantation (Har Medh Par Ped), Bee Keeping, Dairy and Fisheries are also implemented. All these schemes are implemented to enhance income of farmers. Central Government intensively monitors and reviews the progress of the schemes regularly.

(d) & (e): Government fixes the Minimum Support Prices (MSPs) of 22 mandated agricultural crops and Fair and Remunerative Prices (FRP) for sugarcane based on the recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned & other relevant factors. In addition, MSP for Toria and De-husked coconut is also fixed on the basis of MSPs of rapeseed/mustard and copra respectively.

Government has increased the Minimum Support Prices (MSPs) for all notified Kharif & Rabi Crops and other commercial crops for the season 2018-19 with a return of atleast 50 percent over cost of production. This decision of the Government was a historic one as it redeemed the promise of fixing the MSPs atleast at a level of 50 per cent return over cost of production as announced in the Union Budget 2018-19.

The recently launched Umbrella Scheme ‘Pradhan Mantri Annadata Aay Sanrakshan Abhiyan(PM-AASHA)’ provides for a holistic arrangement for assurance of a remunerative and stable price environment for growers/farmers to increase agriculture production and productivity. This Umbrella Scheme comprises Price Support Scheme(PSS) for pulses & oilseeds, Price Deficiency Payment Scheme (PDPS) & Pilot of Private Procurement & Stockist Scheme (PPSS) for oilseeds to ensure MSP to the farmers.

In order to provide an alternative to farmers for marketing avenues, National Agriculture Market scheme (e-NAM) was launched on 14.04.2016. The Scheme envisages initiation of e-marketing platform at national level and will support creation of infrastructure to enable e-marketing in 585 regulated markets across the country by March 2018. The target has been achieved. This innovative market process is revolutionizing agri markets by ensuring better price discovery, bringing in transparency and competition to enable farmers to get improved remuneration for their produce moving towards ‘One Nation One Market’.
Contd…3/-

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As per Union Budget announcement 2018-19, the Government has decided to develop and upgrade existing rural haats into Gramin Agricultural Markets (GrAMs). These GrAMs, electronically linked to e-NAM portal and exempted from regulations of Agriculture Produce Marketing Committees (APMCs), will provide farmers facility to make direct sale to consumers and bulk purchasers.

Further, the Central Government has released the Model Agricultural Produce & Livestock Marketing (Promotion & Facilitation) Act, 2017, in April, 2017 and the Model Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018, in May, 2018, for adoption by State/UTs, to promote alternative competitive marketing channels for better pricing for farmers and to encourage private investment in developing efficient marketing infrastructure and value chain.

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