Parliamentary Panel Recommendations on Agriculture Ministry and Farm Labourers

  • March 13, 2025
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Parliamentary Panel Recommendations on Agriculture Ministry and Farm Labourers

Sub: Schemes

Sec: Agri

Context:

  • The Standing Committee on Agriculture, headed by Charanjit Singh Channi, has suggested renaming the Department of Agriculture and Farmers Welfare to ‘Department of Agriculture, Farmers and Farm Labourers Welfare’.
  • This change would acknowledge the significant role of farm labourers in the agricultural sector.

Recognition of Farm Labourers

  • The committee noted that farm labourers, who often belong to marginalised communities, are a critical part of the agricultural workforce.
  • However, they are frequently overlooked in policy discussions and welfare schemes.
  • The panel recommended the establishment of a ‘National Commission for Minimum Living Wages for Farm Labourers’ to address wage disparities and improve living standards.

Declining Budget Allocation for Agriculture

  • The budgetary allocation to the Ministry as a percentage of the total Central outlay has been declining over the years:
    • 2021-22: 3.53%
    • 2022-23: 3.14%
    • 2023-24: 2.57%
    • 2024-25: 2.54%
    • 2025-26: 2.51%
  • The committee urged the Ministry to reverse this declining trend, given that more than 50% of India’s population depends on agriculture for livelihood.

Minimum Support Price (MSP) for Organic Crops

  • The panel recommended MSP for all organic crops, in addition to traditional crops.
  • However, it stated that MSP for organic produce should not undermine the broader MSP demand based on the Swaminathan formula.
  • It suggested expanding the legal MSP framework to include organic produce to incentivise organic farming.
  • The MSP for organic produce should be higher than that for conventional crops to compensate for:
    • Lower yields in the initial years.
    • Costs associated with the shift to organic farming.

Free and Compulsory Crop Insurance for Small Farmers

  • The committee suggested a “free and compulsory” crop insurance scheme for small farmers with land holdings of up to two hectares.
  • The scheme should be designed on the lines of Pradhan Mantri Jan Arogya Yojana.
  • Expected benefits:
    • Provides financial stability by protecting against crop losses.
    • Encourages investment in better farming practices.
    • Helps farmers avoid debt traps by reducing reliance on high-interest loans from informal sources.
    • Ensures timely compensation and protects small farmers from exploitative lenders.

Monitoring of Agricultural Funds Usage

  • The committee recommended that the Ministry:
    • Put in place mechanisms to monitor fund usage at regular intervals.
    • Address issues that may hamper the spending of allocated amounts.

About Ministry of Agriculture & Farmers Welfare

The Ministry of Agriculture & Farmers Welfare consists of the following three departments:

Department of Agriculture and Farmers Welfare (DA&FW)

  • Responsible for agriculture policy, development programs, and farmers’ welfare schemes.
  • Focuses on crop production, soil health, irrigation, and market reforms.
  • Implements major schemes like PM-KISAN, PMFBY, e-NAM, and Soil Health Card Scheme.

Department of Agricultural Research and Education (DARE)

  • Oversees agricultural research and education in India.
  • Administers the Indian Council of Agricultural Research (ICAR), which promotes research and innovation in agriculture.
  • Focuses on crop improvement, biotechnology, climate resilience, and extension services.

Department of Animal Husbandry and Dairying (DAHD)

  • Deals with livestock, dairy, and poultry sector development.
  • Implements schemes for animal health, genetic improvement, and fodder management.
  • Major schemes include Rashtriya Gokul Mission, National Livestock Mission, and Dairy Entrepreneurship Development Scheme.

Major Schemes under DA&FW

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

  • Direct income support of ₹6,000 per year to small and marginal farmers.
  • Amount paid in three equal installments of ₹2,000 each.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

  • Crop insurance scheme to protect farmers from crop losses due to natural calamities, pests, and diseases.
  • Farmers pay a nominal premium, and the government subsidizes the remaining amount.

Soil Health Card Scheme

  • Provides soil health reports to farmers to improve soil fertility and reduce input costs.
  • Helps in judicious use of fertilizers based on soil conditions.

Paramparagat Krishi Vikas Yojana (PKVY)

  • Promotes organic farming by providing financial assistance to farmers.
  • Encourages the formation of organic farming clusters and certification of organic produce.

Rashtriya Krishi Vikas Yojana (RKVY)

  • Provides flexible funds to states for the development of agriculture and allied sectors.
  • Aims to bridge yield gaps and promote innovation in agriculture.

National Agriculture Market (e-NAM)

  • An online trading platform that connects farmers with buyers across India.
  • Promotes transparent price discovery and better market access.

Kisan Credit Card (KCC) Scheme

  • Provides easy and affordable credit to farmers for agriculture and allied activities.
  • Includes loans for crop production, equipment purchase, and animal husbandry.
Parliamentary Panel Recommendations on Agriculture Ministry and Farm Labourers Schemes