Central Government Schemes for Agricultural Development (Indian Economy) part 13

 Okay, here are structured notes based on the provided transcript about Central Government Agricultural Schemes in India:

Topic: Central Government Schemes for Agricultural Development (Indian Economy)

I. Introduction & Context

• Recap: Previous video discussed Agricultural Insurance.

• Current Topic: Schemes established by the Central Government of India for agricultural sector development.

• Importance: These schemes are crucial for exam preparation (potential for marks).

• Central Government's Role:

  • Although agriculture is primarily a State List subject under the Constitution, the Central Government has jurisdiction over:

    • Storage of agricultural produce.

    • Price control/regulation of agricultural produce.

    • Trade and Commerce of agricultural produce.

  • Therefore, the Centre implements schemes related to these aspects and also initiates Centrally Sponsored Schemes (CSS) to support overall agricultural development.

II. Key Central Government Agricultural Schemes & Programs

1. Doubling Farmers' Income (DFI)

• Origin: Based on the report (2018) of the Inter-Ministerial Committee (formed 2016).

• Goal: To double farmers' income (baseline likely 2015-16, target year originally 2022-23).

• Key Strategies Mentioned:

  • MSP Policy: Implement Minimum Support Price (MSP) ensuring at least 50% margin over the cost of production (as recommended by National Commission on Farmers, 2006; Govt started implementing from 2018).

  • Reduce Cost of Production: Providing subsidies on inputs like fertilizers, interest on loans (Interest Subvention), farm machinery (tractors, harvesters, sprinklers).

  • Increase Productivity: Focus on increasing yield per hectare.

  • Livestock Development: Enhance productivity from animal husbandry.

  • Resource Efficiency: Improve the use of resources to lower costs.

  • Crop Diversification: Encourage cultivation of high-value crops demanded by the market.

  • Remunerative Prices: Ensure farmers receive profitable prices for their produce, possibly by regulating markets/traders.

  • Shift Surplus Labour: Facilitate the movement of excess labour from agriculture to other sectors.

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

• Objective: Provide income support to farmer families.

• Benefit: ₹6,000 per year per eligible family, disbursed in three equal installments of ₹2,000.

• Target Group: Initially targeted Small and Marginal Farmers, later expanded.

• Launch: Announced in 2019-20 Budget, with retroactive effect from December 2018.

• Exclusions: Income tax payers, Pensioners receiving more than ₹10,000/month.

• Scale: Mentioned aiming to cover ~12.5 crore farmer families.

3. Agriculture Infrastructure Fund (AIF)

• Objective: Finance projects for post-harvest management infrastructure and community farming assets.

• Administering Body Context: NABARD mentioned as involved (though primarily managed by Ministry of Agriculture).

• Financing: Provides medium-long term debt financing facility.

  • Loan Amount: Up to ₹2 Crore mentioned.

  • Interest Rate: Low effective rate (3% mentioned) due to interest subvention.

  • Repayment Period: 7 years mentioned.

• Eligible Projects: Warehouses (Godowns), Cold Storage, Food Processing Units, Custom Hiring Centres (CHCs), Grading Units, etc.

• Fund Corpus: ₹1 Lakh Crore.

• Implementation Period: Sanctions from 2020-21 to 2025-26; Disbursement up to 2032-33.

4. Rythu Bazars (State Initiative - AP/Telangana Context)

• Established: 1999.

• Purpose: Direct marketing platform for farmers to sell produce directly to consumers, eliminating middlemen. Aims for fair price for farmers and reasonable price for consumers.

• Numbers: Telangana ~36, Andhra Pradesh ~100.

5. Agmark

• Purpose: Certification mark for quality and grading of agricultural commodities.

• Issuing Authority Context: Directorate of Marketing & Inspection (DMI). Central Agmark Laboratory in Nagpur.

• Significance: Ensures product quality, builds consumer confidence.

• Symbol: Diamond shape within concentric ellipses/circles.

• Regional Labs: 11 mentioned (Delhi, Mumbai, Chennai, etc.).

6. AP Capital Intensive Subsidy Scheme for Cold Storages (APCISSCS) (State Initiative - AP Context)

• Objective: Encourage private investment in cold storage infrastructure in Andhra Pradesh.

• Launched: 1999-2000.

• Subsidy: For projects with investment > ₹50 Lakhs, a maximum subsidy of ₹12.5 Lakhs.

• Current Status: Mentioned number of cold storages in Telangana (234) and AP (1135), highest in Nalgonda (TS) and Guntur (AP).

7. District Agriculture Advisory and Transfer of Technology Centres (DAATTC)

• Established: 1998.

• Purpose: Transfer latest agricultural technologies from research institutions/universities to farmers at the district level and provide advisory services.

• Functions: Soil testing, pest/disease advice, crop management recommendations.

• Numbers: AP 13, Telangana 9.

8. Kisan Credit Card (KCC)

• Launched: 1998, based on R.V. Gupta Committee recommendations.

• Objective: Provide timely and adequate short-term credit to farmers for cultivation and other needs via a simplified procedure.

• Features:

  • Revolving credit limit.

  • Validity: 5 years.

  • Scope Expansion (since 2004): Covers crop loans, allied activities (livestock, fishery), post-harvest expenses, consumption needs.

  • Interest Subvention: Available on loans up to ₹3 Lakhs (effective rate can be 4% or lower with prompt repayment).

• RuPay KCC (since Nov 2012):

  • Allows ATM withdrawals and POS transactions.

  • Facilitates purchase of farm inputs/equipment, potentially on installments.

  • Includes insurance cover: ₹50,000 (Accidental Death/Disability), ₹25,000 (Natural Death).

9. National Commission on Farmers' Welfare (NCFW) (Note: Transcript mentions Jayathi Ghosh 2005, likely an error; NCF was chaired by M.S. Swaminathan 2004-06)

• Context: Rising farmer suicides and agrarian distress (post-1996).

• Objective: Recommend measures to improve the economic viability of farming and farmers' welfare.

• Key Recommendations (as per transcript):

  • Ex-gratia payment for families of suicide victims (Suggested ₹1.5 Lakh; Current: ₹6L TS, ₹8L AP).

  • Moratorium (2 years suggested) on loan recovery for debt-stressed farmers.

  • Farmer awareness programs (Rythu Chaitanya Yatras) via ATMA.

10. National Food Security Mission (NFSM)

• Launched: 2007-08 (11th Plan).

• Objective: Increase production of Rice, Wheat, and Pulses through area expansion and productivity enhancement. Later included Coarse Cereals & Commercial Crops.

• Targets (End of 11th Plan): +10 MT Rice, +8 MT Wheat, +2 MT Pulses.

• 12th Plan Target: +25 MT total food grains (including coarse cereals).

11. National Food Security Act (NFSA), 2013

• Objective: Provide legal entitlement to subsidized food grains.

• Coverage: ~75% Rural population, ~50% Urban population (Overall ~2/3rds).

• Entitlement: 5 kg food grains per person per month.

• Subsidized Prices: Rice ₹3/kg, Wheat ₹2/kg, Coarse Grains ₹1/kg (currently often free under PMGKAY).

• Implementation: Through Targeted Public Distribution System (TPDS).

• Other Provisions: Nutritional support for women and children (ICDS, Mid-Day Meal/PM POSHAN, Saksham Anganwadi).

III. Conclusion

• The video covered key agricultural development programs initiated by the Central Government.

• These schemes are vital from an exam perspective.

• More schemes exist and might be covered later.