Annual fund flow to farm sector jumped nearly 6-fold in 10 years

New Delhi (The Uttam Hindu): There has been a close to six-fold increase in the budget allocation for the Department of Agriculture & Farmers Welfare from Rs 21,933.50 crore during 2013-14 to Rs 122,528.77 crore in 2024-25, the Lok Sabha was informed on Tuesday. The major schemes being implemented for farmers’ welfare include the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Fasal Bima Yojana (PMFBY), Modified Interest Subvention Scheme (MISS) and Agriculture Infrastructure Fund (AIF), Minister of State for Agriculture and Farmers’ Welfare, Ram Nath Thakur, said in a written reply in the Lower House. He further stated that the Indian Council of Agricultural Research (ICAR) has released a compilation of success stories of 75,000 farmers who have increased their income more than two times through the convergence of schemes being operated by the Ministry of Agriculture and Farmers’ Welfare and allied ministries. The minister explained that AIF was launched to address the existing infrastructure gaps and mobilise investment in agriculture. AIF is a medium to long-term debt financing facility for investment in viable projects for post-harvest management infrastructure and viable farming assets, through interest subvention and credit guarantee support.

The Union Cabinet approved the progressive expansion of the AIF by expanding the scope of eligible projects. This includes allowing individual eligible beneficiaries for creation of infrastructure covered under ‘viable projects for building community farming assets’, integrated processing projects and convergence of PM KUSUM ‘A’. Key projects approved under AIF are 18,606 custom hiring centres, 16,276 primary processing units, 13,724 warehouses, 3,102 sorting and grading units, 1,909 cold storage projects and around 21,394 other types of post-harvest management projects and community agricultural assets, he added. The minister explained that farming being a State Subject, the State Governments take appropriate measures for the development of agriculture. However, the Government of India supports the efforts of States through appropriate policy measures, budgetary allocation and various schemes. The various schemes of the Centre are meant for the welfare of farmers by increasing production, remunerative returns and income support to them. Strategies for increasing farmer incomes include improving crop productivity, reducing cost of production, agricultural diversification, adaptation to climate change for sustainable farming and compensation of losses.Various reforms and policies focus on higher income for farmers by modernising and rationalising use of inputs, to decrease cost, increasing production, remunerative returns, income support and old age security, he added.