Agricultural Subsidies (వ్యవసాయ సబ్సిడీలు) and Farmer Welfare (రైతు సంక్షేమం) part 14

 Okay, here are the notes summarizing the key points from the Telugu audio transcript on Agricultural Subsidies and Farmer Welfare:

I. Introduction & Context

• Topic: Agricultural Subsidies (వ్యవసాయ సబ్సిడీలు) and Farmer Welfare (రైతు సంక్షేమం) provided by the Central Government.

• Problem: Farmer income has stagnated compared to other sectors since independence, necessitating government support.

• Government Approach: Provide various subsidies and support mechanisms to enhance farmer welfare and income.

II. Budget Allocation for Agriculture

• General Principle: Funds allocated to the Agriculture Ministry are primarily spent on:

  1. Farmer Welfare (Major Share)

  2. Agricultural Research (Smaller Share)

• Trend: Government spending on farmer welfare is increasing over time.

• Overall Ministry Budget:

  • 2022-23 (Actual/Revised Approx): ₹1.18 Lakh Crore

  • 2023-24 Budget Estimate (BE): ₹1.25 Lakh Crore (approx. 5% increase over 2022-23 Revised Estimate)

• Long Term Trend: Over the last 10 years, funding for the Agriculture Ministry has reportedly increased by about 70%.

III. Types and Forms of Agricultural Subsidies

• Subsidies are generally indirect, provided through various schemes and mechanisms:

  • Crop Insurance Premium: (e.g., PM Fasal Bima Yojana) - Centre & State share premium (50:50), farmer pays a small portion.

  • Interest Subsidy: On agricultural loans obtained from banks.

  • Inputs: Subsidies on Fertilizers, Pesticides, and Seeds.

  • Agricultural Machinery: Subsidies on purchasing farm equipment.

IV. Key Government Schemes & Subsidies

1. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

   • Purpose: Direct income/investment support to farmers.

   • Benefit: ₹6,000 per year, paid in 3 installments of ₹2,000.

   • Target: Small and Marginal Farmers.

   • Budget: ₹60,000 Crore allocated in both 2022-23 and 2023-24 budgets (no significant year-on-year change).

2. Interest Subsidy / Subvention

   • Purpose: Reduce the interest burden on farm loans.

   • Applicability:

     • Primarily for Short-Term agricultural loans (up to ₹3 Lakh) for small & marginal farmers.

     • Key Change (Since 2017): Now also applicable to Long-Term agricultural loans taken by small & marginal farmers.

     • Loans above ₹3 Lakh are not eligible.

   • Subsidy Amount (2022-23 & 2023-24): Total effective subsidy of 4.5% (Implied: 3% from Govt + Additional 1.5% borne by Banks for these years).

   • Budget:

     • 2022-23 Cost: ₹22,000 Crore

     • 2023-24 Allocation: ₹23,000 Crore (~5% increase)

3. Pradhan Mantri Fasal Bima Yojana (PMFBY)

   • Purpose: Crop insurance with subsidized premium.

   • Mechanism: Centre & State share premium burden (50:50); farmer pays minimal amount.

   • Budget (Centre's Share):

     • 2022-23 (Revised): ₹12,376 Crore

     • 2023-24 (Budgeted): ₹13,625 Crore (+10% increase targetted)

4. Rashtriya Krishi Vikas Yojana (RKVY)

   • Launched: 2007

   • Purpose: Promote agriculture and allied sector development.

   • Mechanism: Centre provides funds to States, States have flexibility in spending for designated purposes.

   • Budget (2023-24): ₹7,150 Crore.

   • Note: Schemes like PMKSY (Per Drop More Crop) and PKVY were part of RKVY but separated from 2022-23 budget onwards due to increased focus.

5. PM Krishi Sinchai Yojana (PMKSY) - Per Drop More Crop (PDMC)

   • Focus: Micro-irrigation (sprinklers, drip).

   • Mechanism: Heavy subsidies provided.

6. Kisan Credit Card (KCC)

   • History: Designed by NABARD, implemented since 1998. Scope expanded over time.

   • Link to Subsidy: KCC loans (up to ₹3 Lakh) are eligible for interest subvention.

   • Key Change (2020): KCC loans can now be used for post-harvest expenses (storage, marketing) and household needs, not just pre-sowing costs.

   • Eligibility: Small/marginal farmers, tenant farmers, SHGs, sharecroppers.

   • Recent Data (2022-23): 48 Lakh KCCs issued; ₹2.17 Lakh Crore loans disbursed.

7. Fertilizer Subsidy

   • Context: India has high import dependency (25% N, 90% P, 100% K). Global market volatility (Russia/China actions) impacts prices.

   • Govt Goals: Increase domestic production, ensure equitable distribution, manage price volatility.

   • Budget:

     • 2022-23 BE: ₹1.05 Lakh Crore

     • 2022-23 RE: ₹2.25 Lakh Crore (Significant increase)

     • 2023-24 BE: ₹1.75 Lakh Crore (22% less than 22-23 RE, but higher than 22-23 BE)

   • Delivery Mechanism Change: Moving towards Direct Benefit Transfer (DBT) - Farmer buys at full price, subsidy credited later to bank account.

8. Pradhan Mantri Kisan Maan-dhan Yojana (PM-KMY)

   • Purpose: Pension scheme for small & marginal farmers.

   • Eligibility: Farmers aged 18-40.

   • Mechanism: Farmers contribute monthly (amount based on entry age, e.g., ₹55 at 18, ₹200 at 40) until age 60. Government provides a matching contribution.

   • Benefit: ₹3,000 per month pension after age 60.

   • Budget (2023-24): ₹100 Crore (Increased from previous ~₹40-50 Cr levels, possibly due to relaxed eligibility criteria or increased uptake).

   • Eligibility Change Implied: Income limit for eligibility potentially raised from ₹10,000/month to ₹15,000/month, increasing beneficiary pool.

V. Doubling Farmers' Income (DFI)

• Goal: Double farmer income by 2022-23 (target mentioned) compared to 2015-16 baseline.

• Strategies:

  • MSP ensuring >50% margin over production cost.

  • Providing subsidies to reduce cost of production.

VI. Agricultural Labourers

• Trend: Percentage of landless agricultural labourers increased significantly (1951: 28% -> 2011: 55%).

• Issue: Parliament Standing Committee (2020) noted stagnant income for landless labourers and tenant farmers.

• Response: PM-KMY pension scheme aims to provide social security.

VII. Standing Committees

• Parliament Standing Committee on Agriculture (2020): Highlighted low income growth for landless/tenant farmers.

• Standing Committee on Chemicals and Fertilizers (2021): Reported on high fertilizer import dependency.