Farmers Incomes & Entrepreneurship model

01.04.2024 Dr. Rajesh Bishnoi, Scientist (SS), ICAR-IIPR, RC, Bikaner 1
Major Central Government Schemes for
Agriculture Sector sponsored by MoAFW
Dr. Rajesh Bishnoi
Scientist (SS)
ICAR-IIPR, RC, Bikaner
Email: rajesh.bishnoi@icar.gov.in

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21.02.2022
 Agriculture plays a vital role in India‘s economy.
 54.6% of the total workforce is engaged in agriculture and allied sector activities
(Census 2011).
 Budget allocation Rs. 1,24,000 crore during BE 2022-23.
 As per the Land Use Statistics 2018-19
 The total geographical area of the country is 328.7 million hectares
 139.3 million hectares is the reported net sown area
 197.3 million hectares is the gross cropped area
 Cropping intensity - 141.6%.
 As per Final Estimates for the year 2022-23
 Food grains production – 3296.87 lakh tonnes
 Production of Nutri/Coarse Cereals – 573.19 lakh tonnes.
 Total Pulses production – 260.58 lakh tonnes.
 Total Oilseeds production – 413.55 lakh tonnes.
 Horticultural production – 351.92 million tonnes
 Minimum Support Prices (MSPs) for twenty-two (22) mandated crops
Brief Scenario of Indian Agriculture
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 February 2016, targets to double farmers income by 2022
 DFI Committee identified seven sources of income
growth:-
i. Increase in crop productivity
ii. Increase in livestock productivity
iii. Resource use efficiency – reduction in cost of
production
iv. Increase in cropping intensity
v. Diversification to high value agriculture
vi. Remunerative prices on farmers’ produce
vii. Shift of surplus manpower from farm to non-farm
occupations
Doubling Farmer’s Income
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 Increase in Minimum Support Price (MSPs) for all Kharif & Rabi crops ensuring
a minimum of 50 percent of profit margin on the cost of production.
 Supplementary income transfers under PM-KISAN.
 Crop insurance under Pradhan Mantri Fasal BimaYojana (PMFBY)
 Better access to irrigation under Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
 Special attention for creation of infrastructure through Agri Infrastructure Fund
(AIF) with a size of Rs. 100,000 crore.
 Kisan Credit Cards (KCC) offering production loan to even dairy & fishery
farmers besides agricultural crops.
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 Formation and promotion of 10,000 FPOs.
 National Mission for Sustainable Agriculture (NMSA)
 Adoption of drone technologies in agriculture which has a potential to
revolutionize the Indian agriculture.
 Benefits accruing under Bee-keeping, Rashtriya Gokul Mission, Blue
Revolution, Interest Subvention Scheme, agroforestry, restructured bamboo
mission, implementation of new generation watershed guidelines etc.
 Focus on application of digital technology at all stages of agricultural value
chain.
 Supply of fertilizer to farmer at subsidized price so as to reduce input cost.
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 The aim is creation of infrastructure at the farm gate.
 The scheme shall provide a medium-long term debt financing
facility
 Investment in viable projects for post – harvest management
Infrastructure and community farming assets through interest
subvention and financial support for credit guarantee.
 Central Sector Scheme of financing facility under Agri
Infrastructure Fund is operational from the year 2020-21 to 2032-
33.
 Under the scheme, Rs. 1 Lakh Crore will be provided by banks
and financial institutions as loans.
 All loans under this financing facility will have interest subvention
of 3% per annum up to a limit of Rs. 2 crore.
 Major Agriculture Schemes sponsored by MoAFW
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 Agriculture Infrastructure Fund (AIF)

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 Under the scheme, financing facility shall be provided
 To create/modernise post-harvest management infrastructure like dry and
cold storage infrastructure, ripening chambers, packhouse, primary
processing centres, assaying units, Cold chains, supply chain infrastructure
including e-marketing platform, logistic facility etc.
 Community farming assets like bio-stimulant production, farm/harvest
automation, infrastructure for smart and precision farming, organic input
production, Remote sensing and IoT based farming infrastructure etc.
 As on 20 January 2023, Rs. 15287 Crores have been sanctioned for 20710
projects.
 Major projects sanctioned under AIF include 8505 warehouses, 3574 primary
processing units, 2372 custom hiring centres, 1088 sorting & grading units, 803
cold store projects, 163 assaying units and around 3883 other kinds of post-
harvest management projects and community farming assets.
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 Agriculture Infrastructure Fund (AIF)

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 Diversified agro climatic conditions of India provide great potential and
opportunities for beekeeping/ honey production and export of Honey.
 Beekeeping is useful in pollination of crops
 Beekeeping is an agro-based rural activity practiced by poor/landless
labourers/farmers/rural youths/women, etc.
 Beekeeping generates income and employment without disturbing natural
resources.
 Beekeeping/Honeybees converts nector and pollen (otherwise go waste) into
food by producing honey and other beehive products.
 Produces high value beehive products i.e. royal jelly, propolis, bee pollen, bee
venom, bee bread etc.
 Help in increasing yield of various horticultural crops (fruits and vegetables) and
agricultural crops (oilseeds, pulses, etc.) by providing pollination support.
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 The National Beekeeping and Honey Mission (NBHM)

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 To achieve the goal of “Sweet Revolution (Mithi Kranti)” in the country
 Govt. of India has approved a Central Sector Scheme entitled “National
Beekeeping & Honey Mission (NBHM)” with total budget outlay of Rs. 500.00
crores for 3 years (2020-21 to 2022-23) under Aatma Nirbhar Bharat
Announcement for overall promotion and development of scientific beekeeping.
 Thrust will be given on awareness, capacity building/ trainings, focus on women
empowerment through beekeeping, setting up of requisite infrastructural facilities,
viz.; Integrated Beekeeping Development Centres (IBDCs), Honeybees Disease
Diagnostic Labs, Setting/upgradation of Honey Testing labs, Beekeeping
Equipment Manufacturing Units, Custom Hiring Centres, Api therapy Centres,
Development of Quality Nucleus Stock Centres & Bee Breeders etc.
 03 sub missions:
 Digitization/online registration etc. under MM-I
 Processing, value addition, market support, etc. under MM-II
 Research and Development under MM-III.
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 The National Beekeeping and Honey Mission (NBHM)

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 Modified Interest Subvention Scheme with a view to provide short term Agri-
loans to the farmers at concessional rate of interest.
 Under the scheme, farmers are given upfront interest subvention of 1.5%.
 Short term crop loan upto Rs. 3.00 lakh is available to farmers engaged in
Agriculture and other allied activities at an interest rate of 7%.
 Additional 3% subvention is also given to the farmers for prompt and timely
repayment of loans; thus the effective rate of interest comes down to 4% per
annum.
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Modified Interest Subvention Scheme (MISS)

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 To provide credit facilities to farmers
 KCC to farmers on the basis of their land holdings
 Farmers may use them to readily purchase agriculture inputs such as seeds,
fertilizers, pesticides etc. and draw timely cash for their production needs.
 Processing fee, inspection, ledger folio charges and all other service charges
have been waived off for fresh issue/renewal of KCC.
 Collateral free agriculture loan limit has been raised from Rs.1.00 lakh to Rs.1.60
lakh.
 Time limit of 14 days (from receipt of farmer's application) has been fixed to
provide KCC to all eligible farmers.
 It offers multiple repayment options to make sure that all sorts of farmers can
have customized funding facilities.
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Kisan Credit Card (KCC)

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 Information & Communication Technology (ICT) for timely access to agriculture
related information for the farmers.
 In agriculture, availability of real time information at the right time is a
continuous challenge.
 M-KISAN:
 This portal–M-KISAN, where, around 5.3 crore farmers are registered and
experts/ scientists of different departments like IMD, ICAR, State
Government, State Agriculture Universities send information to farmers in
12 local languages on a regular basis.
 Farmers‘ portal (www.farmer.gov.in):
 Farmers’ Portal is a one stop shop for farmers where a farmer can get
relevant information on a range of topics including seeds, fertilizer,
pesticides, credit, good practices, dealer network, availability of inputs,
agromet advisory etc.
 Kisan Suvidha: - Mobile app users can visit https://kisansuvidha.gov.in
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ICT in Agriculture

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 Better Farming by Every Farmer
 This programme aims to tap the expertise available in the large pool of
Agriculture Graduates.
 Set up your own AgriClinic or AgriBusiness Centre and offer professional
extension services to innumerable farmers.
 Government is now also providing start-up training to graduates in Agriculture, or
any subject allied to Agriculture like Horticulture, Sericulture, Veterinary Sciences,
Forestry, Dairy, Poultry Farming, and Fisheries, etc.
 Those completing the training can apply for special start-up loans for venture.
 Earn money and prestige by becoming a consultant to farmers
 Free Training to set up your Agriclinic or Agribusiness Centre
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Agriclinics & Agribusiness Centres (ACABC)

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 PMKSY was approved by the Cabinet Committee on Economic Affairs on
01.07.2015 and Rs. 50,000 crore for a period of 5 years (2015-16 to 2019-20).
 The aim of PMKSY is to ensure access to some means of protective irrigation to
all agricultural farms in the country - to produce ‘per drop more crop’.
 PMKSY is strategized by focusing on end to end solution in irrigation supply
chain, viz. water sources, distribution network, efficient farm level applications,
extension services on new technologies & information etc. based on
comprehensive planning process at district/State level.
 Conserve soil and water through good Agricultural practices.
 Harvest rain water through construction of check dams and ponds.
 Adopt crop diversification, seed production and nursery raising in water logged
areas. Adopt drip and sprinkler irrigation system to save 30-37% water and
enhance crop quality and productivity.
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Pradhan Mantri Krishi Sinchayi Yojana (PMKSY)

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The scheme was originally started for Small & Marginal Farmers (SMFs) only,
possessing a combined holding of upto 2 hectares of land, but later w.e.f.
01.04.2019 the Scheme was extended to all farmers, irrespective of the size of
their land holdings.
Payment of Rs. 6000/- per year to be transferred in three equal installments
 The Scheme is being implemented online through the Direct Benefit Transfer
(DBT) mode for which an exclusive web-portal www.pmkisan.gov.in has been
created.
Aim and objective:
 To supplement the financial needs of farmers
Beneficiaries of the Scheme
 All landholding farmer families across the country having cultivable land,
subject to certain exclusion criteria relating to higher income status are eligible
for the benefit under the scheme.
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Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

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 The PM-KMY is an old age pension scheme. Launched on 12 September, 2019.
 For all land holding Small and Marginal Farmers (SMFs) in the country.
 In partnership with the Life Insurance Corporation of India (LIC). The LIC shall be
the Pension Fund Manager and responsible for pension pay out.
 It is a voluntary and periodic contribution based pension system
 To create a social security net for farmers as old age may result in loss of
livelihood for many of them.
 The amount of the monthly contribution shall range between Rs.55 to Rs.200 per
month depending upon the age of entry of the farmers into the Scheme.
 PM-KMY provides for an assured monthly pension of Rs. 3000/- to all land
holding Small and Marginal Farmers (SMFs), whether male or female, on
attaining the age of 60 years.
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Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

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 Safeguard farmers themselves financially against natural risks like natural disasters/
calamities, incest, pest &diseases and adverse weather conditions.
 Take benefit of appropriate crop insurance scheme applicable in farmer’s locality.
 Four insurance schemes are being implemented such as PMFBY, Weather based
Crop Insurance Scheme (WBCIS), Coconut Palm Insurance Scheme (CPIS) and
Pilot Unified Package Insurance Scheme (UPIS).
 Insurance coverage is Compulsory, if farmers availed crop loan for notified crops
and it is voluntary for non-loanee farmers.
 An integrated National Crop Insurance Portal (www.pmfby.gov.in)
 Under PMFBY, a uniform maximum premium of only 2% of the sum insured is paid
by farmers for Kharif crops and 1.5% for Rabi crops.
 In case of annual commercial and horticultural crops, the maximum premium to be
paid by farmers is upto 5%.
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Pradhan Mantri Fasal BimaYojana (PMFBY)

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 Mission for Integrated Development of Horticulture (MIDH) is a Centrally
Sponsored Scheme for the holistic growth of the horticulture sector
covering fruits, vegetables, root & tuber crops, mushrooms, spices, flowers,
aromatic plants, coconut, cashew and cocoa.
 342.33 million tonnes horticultural production
 28.08 million hectare area
 MIDH consists of following schemes on Horticulture:
1) National Horticulture Mission (NHM),
2) Horticulture Mission for North East and Himalayan States (HMNEH),
3) National Horticulture Board (NHB)
4) Coconut Development Board (CDB)
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Mission for Integrated Development of Horticulture (MIDH)

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 This Centrally Sponsored Scheme was launched in the year 2005-06.
 Aims at the holistic development of the horticulture sector by ensuring forward
and backward linkage through a cluster approach with the active participation of
all stakeholders.
 Supply of quality planting material through establishment of nurseries and tissue
culture units, production and productivity improvement programmes through area
expansion and rejuvenation, technology promotion, technology dissemination,
human resource development,
 Creation of infrastructure for post harvest management and marketing in
consonance with the comparative advantages of each State/region and their
diverse agro-climatic conditions are major interventions under NHM.
 To keep fruits and vegetables fresh for longer period, use cold storage facility/cool
houses.
 Produce off-season vegetables and flowers in poly-houses, low tunnels.
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National Horticulture Mission (NHM)

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 National Food Security Mission was launched in 2007-08
 To increase the production of rice, wheat and pulses by 10,8 and 2 million tonnes
respectively by the end of the 11 Plan
 The Mission was continued during the 12th Plan 4 million tones of pulses and 3
million tones of coarse cereals by the end of the 12 Plan.
 Beyond the 12th Plan (2017-18 to 2019-20), to achieve 13 million tonnes of
additional foodgrains production comprising of rice- 5 million tonnes, wheat-3
million tonnes, pulses-3 million tonnes and nutri-cum-coarse cereals-2 million
tones by 2019-20
 An additional objective to enhance post-harvest value addition at farm gate for
better price realization to farmers through efficient market linkages.
 To promote and extend improved technologies of package of practices of crops
 From the year, 2020-21, primary processing units/small storage bins/flexibility
interventions has been added as per local requirement.
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National Food Security Mission (NFSM)

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 With effect from 2018-19, the NMOOP scheme has been merged with National
Food Security Mission (NFSM)and is being implemented as NFSM (OS&OP).
 The scheme is focusing to benefit the farmers and has direct impact on
increasing the farmers income involved in oilseed cultivation.
 Most of the components are in the ratio of 60:40 % (GoI: State) sharing laving for
general states and 90:10 % for North East and hilly states.
 With the objective of augmenting the availability of edible oils by increasing the
production and productivity of oilseeds and oil palm and reducing the import
burden.
 Of all the imported edible oils, share of palm oil is about 57%followed by soybean
oil with a share of 29% and sunflower (14%).
 Import growth in respect of edible oils during the last decades is about 174%.
 The import figure of edible oils during 2021-22 reveals that India imported a total
of 14.19 million tonnes of vegetable oils costing Rs. 156800 crore.
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National Food Security Mission (Oilseeds) and National Mission On
Edible Oils-oil Palm (NMEO-OP)

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 National Mission for Sustainable Agriculture (NMSA) is one of the eight Missions
outlined under the National Action Plan on Climate Change (NAPCC) and aims at
promoting sustainable agriculture by devising appropriate adaptation
strategies/dimensions.
 NMSA as a programmatic intervention made operational from the year 2014-15
aims at making agriculture more productive, sustainable, remunerative and climate
resilient by promoting location specific integrated/composite farming systems; soil
and moisture conservation measures; comprehensive soil health management;
efficient water management practices and main streaming rainfed technologies.
 NMSA aims at promoting Sustainable Agriculture through climate change
adaptation measures.
 The major thrust is enhancing agriculture productivity especially in rainfed areas
focusing on integrated farming, soil health management and synergizing resource
conservation.
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National Mission For Sustainable Agriculture (NMSA)

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 It’s sub-component of Soil Health Management (SHM) scheme under National
Mission of Sustainable Agriculture (NMSA).
 To promote Organic Farming, GOI launched scheme with emphasis on
sustainable productivity, food security and soil health.
 Aims at development of models of excellence in organic farming through a
mix of traditional wisdom and modern science in value chain mode to install
sustainability, ensure long term soil fertility buildup, resource conservation and
to offer safe and healthy food grown through organic practices without the use
of agro-chemicals.
 PKVY also aims at empowering farmers through institutional development
through clusters for not only in farm practices management, input production,
quality assurance but also in value addition and direct marketing through
innovative means.
 Participatory Guarantee System under PGS-India programme will be the key
approach for quality assurance under the PKVY.
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Paramparagat Krishi Vikas Yojana (PKVY)

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 The PKVY is the first comprehensive scheme launched by the
Government as a centrally sponsored programme (CSP).
 Funding pattern: 100% in Union Territories (UT), 90:10 in North-
Eastern and Hilly States and 60:40 in case of all other States.
 The PKVY Scheme is implemented in a cluster mode with min. 20
ha size and states have been asked to implement in cluster size of
1000 ha in plain area and 500 ha in hilly area to facilitate marketing
of organic produce.
 All farmers are eligible but within a group a farmer can avail benefit
to a maximum of 2 ha and the limit of assistance is Rs.50,000 per
ha., out of which 62% i.e., Rs. 31,000 is given as incentives to a
farmer for organic conversion, organic inputs, on farm inputs,
production infrastructure, etc., shall be provided directly through
DBT during the conversion period of 3 years.
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Paramparagat Krishi Vikas Yojana (PKVY)

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 GoI initiated Natural Farming through implementation of Bhartiya Prakritik
Krishi Padhati (BPKP-A sub scheme of PKVY)-since 2020-21 to promote
traditional indigenous agro-ecological farming including Zero Budget Natural
Farming which has gained huge importance across the country.
 A total of 4.09 lakh ha area has already been covered in 8 States under BPKP.
 The BPKP scheme is being upscaled in Mission Mode as a separate as
National Mission on Natural Farming to cover 7.5 lakh ha area by developing
15000 clusters.
 Target of 7,50,000 ha area & 15 lakh farmers to be converted and equal
number of Farmers to be trained – Each OneTeach One.
 National Centre for Organic & Natural Farming (NCONF) to facilitate
Certification &Training of Master trainers.
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National Mission on Natural Farming (NMNF)

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 “Soil Health Card” was launched on 19 February, 2015 to provide Soil
Health Cards to all the farmers in the country.
 Soil Health Card provides information to farmers on soil nutrient
status of their soil and recommendation on appropriate dosage of
nutrients to be applied for improving soil health and its fertility.
 Soil Health & Fertility aims at promoting Integrated Nutrient
Management (INM) through judicious use of chemical fertilizers
including secondary and micro nutrients in conjunction with organic
manures and bio-fertilizers for improving soil health and its
productivity
 Strengthening of soil and fertilizer testing facilities to provide soil test
based recommendations to farmers for improving soil fertility.
 Up-gradation of skill and knowledge of soil testing laboratory staff,
extension staff and farmers through training and demonstrations etc.
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Soil Health Card (SHC)

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 The Scheme has been implementation from 2017-18.
 Major focus on pre & post-harvest infrastructure, besides promoting agri-
entrepreneurship, innovations & value addition.
 The scheme is available for the various activities of agriculture & allied sector
such as crop development, horticulture, agricultural mechanization, marketing,
pre & post-harvest management, integrated pest management, organic farming,
research, extension etc.
 As per recommendation of Expenditure Finance Committee, RKVY has re-
structured as RKVY Cafeteria Scheme from 2022-23 onwards merging some
schemes of Department of Agriculture & Farmers Welfare which includes Soil
Health & Fertility, Rainfed Area Development, Paramparagat Krishi Vikas Yojana
(PKVY), National Mission on Natural Farming, Per Drop More Crop, Agriculture
Mechanization (including Promotion of Agricultural Mechanization and
Management of Crop Residue (CRM), Village Haats & GRAAMS and Crop
Diversification Programme.
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RASHTRIYA KRISHI VIKAS YOJANA (RKVY)

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The objectives of the scheme are:
 To strengthen the efforts of farmers through creation of pre & post-harvest
agricultural infrastructure that increases access to quality inputs, storage, market
facilities and enable farmers to make informed choice.
 To provide autonomy, flexibility to States to plan and execute schemes as per
local/ farmers’ needs.
 To promote value chain addition linked production models that will help farmers
increase their income as well as encourage production/productivity
 To mitigate the risk of farmers with focus on additional income generation activities
- integrated farming, mushroom cultivation, bee keeping, aromatic plant cultivation,
floriculture etc.
 To empower youth through skill development, innovation and agri-
entrepreneurship based agribusiness models that attract them to agriculture.
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RASHTRIYA KRISHI VIKAS YOJANA (RKVY)

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 Integrated Scheme for Agricultural Marketing (ISAM)
 ISAM consists of sub-schemes
 Agricultural Marketing Infrastructure(AMI)
 National Agriculture Market (e-NAM)
 Marketing Research and Information Network (MRIN)
 Strengthening of Agmark Grading Facilities (SAGF)
 The erstwhile two schemes viz. (i) Grameen Bhandaran Yojana (GBY)
implemented since 01.04.2001, and (ii) Scheme for Strengthening/ Development
of Agricultural Marketing Infrastructure, Grading & Standardization (AMIGS)
implemented since 20.10.2004 have been subsumed into one scheme known as
Agricultural Marketing Infrastructure (AMI) w.e.f.01.04.2014.
 To develop marketing infrastructure to effectively handle and manage marketable
surpluses of agricultural and allied produce including horticulture livestock,
poultry, fishery, bamboo, minor forest produce and such like produce supportive to
enhance farmers' income.
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Agricultural Marketing

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National Agriculture Market (e-NAM)
 To integrate markets first at the level of the States and eventually across the
country through a common online market platform, to facilitate pan - India trade in
agricultural commodities
 To streamline marketing/transaction procedures and make them uniform across All
markets to promote efficient functioning of the markets;
 To promote better marketing opportunities for farmers/sellers through online
access to more buyers/markets, removal of information asymmetry between
farmer and trader, better and real-time price discovery based on actual demand
and supply of agri-commodities;
 To promote stable prices and availability of quality produce to consumers
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 Farmers can access prevailing commodity prices information on e-NAM mobile
Application prior to even going to mandi.
 e-NAM facilitates direct trade between buyers/ traders and farmers across the
country.
 Farmers may sell their produce in more than one market.
 Central Sector Scheme for Formation and Promotion of 10,000 Farmer
Producer Organizations (FPOs)
 So far, 10,000 FPO producer clusters have been allocated to Implementing
Agencies (IAs) which includes FPO produce clusters on Area based approach-
“One Block One FPO”.
07.07.2022 31

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Farmers Incomes & Entrepreneurship model

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