Question : Lowering the Cost of Agri-Production

(a) whether the Government proposes to take measures to lower the cost of agricultural production;

(b) if so, the details thereof;

(c) the schemes and equipments by means of which it is proposed to achieve the said objective; and

(d) the details thereof, scheme-wise?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a) to (d): The strategy of the Government is to focus on farmers’ welfare by making farming viable. The Government is realigning its interventions to move from production-centric to farmers’ income-centric platform. In order to realise net positive returns for the farmer, schemes as follows, are inter-alia being promoted and implemented to lower the cost of agricultural production:-

(i) Soil Health Card (SHC) scheme by which the farmers can know the major and minor nutrients available in their soils which will ensure judicious use of fertilizer application and thus save money of farmers bringing down the cost of Agri-production.

(ii) Neem Coated Urea (NCU) is being promoted to regulate use of urea, enhance availability of nitrogen to the crop and reduce cost of fertilizer application, NCU slows down the release of fertilizer and makes it available to the crop in an effective manner making Agri-production cheaper.

(iii) Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched on 1st July, 2015 with the motto of ‘Har Khet Ko Paani’ for providing end-to-end solution in irrigation supply chain, comprising water sources, distribution network and farm level applications.
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(iv) The Government provides total interest subvention up to 5% (inclusive of 3% prompt repayment incentive) on short-term crop loans up to Rs. 3.00 lakh. Thus, loan is available to farmers at a reduced rate of 4% per annum on prompt repayment. This reduced rate helps in keeping Agri-production costs in check.

(v) Paramparagat Krishi Vikas Yojana (PKVY) is being implemented with a view to promote organic farming in the country. The scheme is implemented by the State Government on per hectare basis for 500-1000 hectare area in each cluster. A group of farmers having a total area of 20 hectare as far as possible in contagious patch within a village. The farmer within a group can avail benefit to a maximum of 2 hectare and the limit of assistance is Rs.50, 000 per hectare.

(vi) A Sub Mission on Agricultural Mechanization (SMAM) is being implemented from 2014-15 to provide a suitable platform for converging all activities for inclusive growth of agricultural mechanization by providing a ‘single window’ approach for implementation with a special focus on Small & Marginal farmers with the following objectives:-

a) Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low;
b) Promoting ‘Custom Hiring Centres’ to offset the adverse economies of scale arising due to small landholding and high cost of individual ownership;
c) Creating hubs for hi-tech & high value farm equipments;
d) Creating awareness among stakeholders through demonstration and capacity building activities;
e) Ensuring performance testing and certification at designated testing centres located all over the country.

(vii) With a view to provide better insurance coverage to crops, Government has launched a new crop insurance scheme namely Pradhan Mantri Fasal Bima Yojana (PMFBY) from Kharif 2016 season. This scheme provides insurance cover for all stages of the crop cycle including post-harvest risks in specified instances.

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