New Schemes to increase the income of farmers

Government of India is implementing various schemes and programmes for the welfare of farmers in the country. Some of the recently launched schemes include Pradhan Mantri Kisan Samman Nidhi Yojana (PM-KISAN), Pradhan Kisan Mantri Maan Dhan Yojana (PM-KMY), Pradhan Mantri Fasal Bima Yojana (PMFBY), Agriculture Infrastructure Fund (AIF), National Beekeeping & Honey Mission (NBHM), Formation and promotion of 10,000 FPOs, National Mission on Edible Oils – Oil Palm (NMEO-OP) etc. A brief of major beneficiary oriented schemes, including recently launched ones, being implemented by the Department of Agriculture and farmers’ Welfare is given at below:

Brief details of major schemes implemented by the Department of Agriculture and Farmers Welfare

Sl

No

Name of the Scheme

Purpose

1

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

PM-KISAN is a central sector scheme launched on 24th February 2019 to supplement financial needs of land holding farmers, subject to exclusions. Under the scheme, financial benefit of Rs 6000/- per year is transferred in three equal four-monthly installments into the bank accounts of farmers’ families across the country, through Direct Benefit Transfer (DBT) mode.

2

Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

In order to provide financial support and security to the most vulnerable farmer families, Government launched Pradhan Mantri Kishan Maandhan Yojana w.e.f. 12.09.2019 to provide pension benefits to small and marginal farmers. PM KMY is meant for Small and Marginal Farmers falling in the entry age between 18 to 40 years having cultivable land up to 2 hectares The scheme seeks to provide Rs 3,000/- monthly pension to the Small and Marginal Farmers once they attain 60 years of age.

3

Pradhan Mantri Fasal Bima Yojana (PMFBY)

PMFBY was launched in 2016 in order to provide a simple and affordable crop insurance product to ensure comprehensive risk cover for crops to farmers against all non-preventable natural risks from pre-sowing to post-harvest and to provide adequate claim amount. The scheme is demand driven and available for all farmers.

4

Interest Subvention Scheme (ISS)

The Interest Subvention Scheme (ISS) provides concessional short term agri-loans to the farmers practicing crop husbandry and other allied activities like animal husbandry, dairying and fisheries. ISS is available to farmers availing short term crop loans upto Rs.3.00 lakh at an interest rate of 7% per annum for one year. Additional 3% subvention is also given to the farmers for prompt and timely repayment of loans thus reducing the effective rate of interest to 4% per annum. The benefit of ISS is also available for post-harvest loans against Negotiable Warehouse Receipts (NWRs) on crop loans for a further period of six months post-harvest to small and marginal farmers having Kisan Credit Cards (KCCs), on occurrence of natural calamities and severe natural calamities.

5

Agriculture Infrastructure Fund (AIF)

In order to address the existing infrastructure gaps and mobilize investment in agriculture infrastructure, Agri Infra Fund was launched under Aatmanirbhar Bharat Package. AIF was introduced with a vision to transform the agriculture infrastructure landscape of the country. The Agriculture Infrastructure Fund is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee support. The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020-21 to FY2025-26 and the support under the scheme will be provided for the duration of FY2020-21 to FY2032-33.

Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crores. Further, each entity is eligible to get the benefit of the scheme for up to 25 projects located in different LGD codes.

Eligible beneficiaries include Farmers, Agri-entrepreneurs, Start-ups, Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group (SHG), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Central/State agency or Local Body sponsored Public Private Partnership Projects, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, Federations of FPOs (Farmer Produce Organizations) and Federations of Self Help Groups (SHGs).