Budget 2017-18 and Farmers

Agriculture is expected to grow at 4.1% in the current year
Credit

• About 40% of the small and marginal farmers avail credit from the cooperative structure. The Primary Agriculture Credit Societies (PACS) act as the front end for loan disbursements. We will support NABARD for computerisation and integration of all 63,000 functional PACS with the Core Banking System of District Central Cooperative Banks.

Pradhan Mantri Fasal Bima Yojana

• The Fasal Bima Yojana launched by Government is a major step in this direction. The coverage of this scheme will be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19.
• The scheme covers kharif, rabi crops as well as annual commercial and horticultural crops. For Kharif crops, the premium charged would be up to 2% of the sum insured. For Rabi crops, the premium would be up to 1.5% of the sum assured. For annual commercial and horticultural crops, premium would be 5 per cent. The remaining share of premium will be borne equally by the central and respective state governments.
• There will be one insurance company for the whole state. Private insurance companies will be roped along with Agriculture Insurance Company of India Limited (AIC) to implement the scheme.
• Apart from yield loss, the new scheme will cover post-harvest losses also. It will also provide farm level assessment for localised calamities including hailstorms, unseasonal rains, landslides and inundation.
• The scheme proposes mandatory use of remote sensing, smart phones and drones for quick estimation of crop loss. This will speed up the claim process.

Soil Health Cards - Ministry of Agriculture & Farmers Welfare

• Government will therefore set up new mini labs in Krishi Vigyan Kendras (KVKs) and ensure 100% coverage of all 648 KVKs in the country.
• In addition, 1000 mini labs will be set up by qualified local entrepreneurs.
• Government will provide credit linked subsidy to these entrepreneurs.

Long Term Irrigation Fund- NABARD

• In a move that aims to address the perennial irrigation water crisis affecting rural India, Ministry of Water Resources, River Development and Ganga Rejuvenation and NABARD signed an agreement to operationalise the Long Term Irrigation Fund (LTIF) to be instituted in NABARD as part of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).

Pradhan Mantri Krishi Sinchayee Yojana
PMKSY has been formulated with the vision of extending the coverage of irrigation ‘Har Khet ko pani’ and improving water use efficiency ‘More crop per drop' in a focused manner . PMKSY has been formulated amalgamating ongoing schemes viz.

• Accelerated Irrigation Benefit Programme (AIBP) of the Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR,RD&GR),
• Integrated Watershed Management Programme (IWMP) of Department of Land Resources (DoLR) and
• the On Farm Water Management (OFWM) of Department of Agriculture and Cooperation (DAC).

National Agricultural Market (e-NAM)

• Online trading platform, both, at State and National level and promotes uniformity,
• Streamlining of procedures across the integrated markets,
• Removes information asymmetry between buyers and sellers and promotes real time price discovery, based on actual demand and supply,
• Promotes transparency in auction process, and access to a nationwide market for the farmer, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.
• (e-NAM) will be expanded from the current 250 markets to 585 APMCs.
• Assistance up to a ceiling of ` 75 lakhs will be provided to every e-NAM market for establishment of cleaning, grading and packaging facilities.
• A model law on contract farming would therefore be prepared and circulated among the States for adoption.
• A Dairy Processing and Infrastructure Development Fund would be set up in NABARD with a corpus of ` 8,000 crores over 3 years.
   

By: Vishal