Steps for Doubling Farmers’ Income

  • September 19, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Subject: Economy

Context:

Union Minister of Agriculture and Farmers Welfare in Rajya Sabha has informed about steps taken for doubling farmers’ income.

Concept:

  • The Government constituted an Inter-ministerial Committee in April, 2016 to examine issues relating to “Doubling of Farmers Income” (DFI) and recommend strategies to achieve the same.
  • The Committee submitted its Report to the Government in September, 2018 containing the strategy for doubling of farmers’ income by the year 2022.
  • The DFI strategy as recommended by the Committee include seven sources of income growth viz.,
    1. improvement in crop productivity
    2. improvement in livestock productivity
    3. resource use efficiency or savings in the cost of production
    4. increase in the cropping intensity
    5. diversification towards high value crops
    6. improvement in real prices received by farmers
    7. shift from farm to non-farm occupations

List of various interventions and schemes launched for the benefit of farmers

  • With a view to provide income support to all farmers’ families across the country, to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, the Central Government started a new Central Sector Scheme, namely, the Pradhan MantriKisanSammanNidhi (PM-KISAN). The scheme aims to provide a payment of Rs. 6000/- per year, in three 4-monthly installments of Rs. 2000/- to the farmers families, subject to certain exclusions relating to higher income groups.
  • Further with a view to provide social security net for Small and Marginal Farmers (SMF) as they have minimal or no savings to provide for old age and to support them in the event of consequent loss of livelihood, the Government has decided to implement another new Central Sector Scheme i.e. Pradhan MantriKisanMaanDhanYojana (PM-KMY) for providing old age pension to these farmers. Under this Scheme, a minimum fixed pension of Rs. 3000/- will be provided to the eligible small and marginal farmers, subject to certain exclusion clauses, on attaining the age of 60 years.
  • With a view to provide better insurance coverage to crops for risk mitigation, a crop insurance scheme namely Pradhan MantriFasalBimaYojana (PMFBY) was launched from Kharif 2016 season. This scheme provides insurance cover for all stages of the crop cycle including post-harvest risks in specified instances, with low premium contribution by farmers.
  • Implementation of flagship scheme of distribution of Soil Health Cards to farmers so that the use of fertilizers can be rationalized.
  • “Per drop more crop” initiative under which drip/sprinkler irrigation is being encouraged for optimal utilization of water, reducing cost of inputs and increasing productivity.
  • “ParamparagatKrishiVikasYojana (PKVY)” for promoting organic farming.
  • Launch of e-NAM initiative to provide farmers an electronic transparent and competitive online trading platform.
  • Under “HarMedh Par Ped”, agro forestry is being promoted for additional income.  With the amendment of Indian Forest Act, 1927, Bamboo has been removed from the definition of trees. A restructured National Bamboo Mission has been launched in the year 2018 to promote bamboo plantation on non- forest government as well as private land and emphasis on value addition, product development and markets.
  • Giving a major boost to the pro-farmer initiatives, the Government has approved a new Umbrella Scheme ‘Pradhan MantriAnnadataAaySanrakshanAbhiyan (PM-AASHA)’.  The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018. This is an unprecedented step taken by Govt. of India to protect the farmers’ income which is expected to go a long way towards the welfare of farmers.
  • The Government has extended the facility of Kisan Credit Card (KCC) to the farmers practicing animal husbandry and fisheries related activities.
  • Several market reforms have been rolled out. These include
    • Model APLMC (Promotion & Facilitation) Act, 2017
    • Establishment of 22,000 number of Gramin Agriculture Markets (GrAMs) as aggregation platforms
    • Agri-Export Policy, that targets to double agri-exports by 2022
    • The Farmers Produce Trade and Commerce (Promotion & Facilitation) Ordinance, 2020
    • The Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
    • Amendments to Essential Commodities Act, 1955, that deregulates various agri-commodities
  • Creation of Corpus Funds
    • Micro Irrigation Fund – Rs. 5,000 crore
    • Agri-marketing Fund to strengthen eNAM and GrAMs – Rs. 2,000 crore
    • Agricultural Infrastructure Fund (AIF) to build agri-logistics (backward & forward linkages) – Rs. 1 lakh crore
economy Steps for Doubling Farmers' Income