Empowering our Farmers
September 26, 2016
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Empowering our Farmers

The NDA Government under PM Narendra Modi has put unprecedented focus on agriculture. Numerous initiatives to improve productivity, safeguard farmers and augment their incomes and improve their overall well-being have been taken in the past two years. The steps taken by the Government are helping the farmers in a multitude of ways; from easy availability of fertilizers to improving irrigation facilities, from crop insurance scheme to easy access to credit, from scientific help to better price for their produce. PM Modi has also given a call to double farmers’ incomes by 2022 by multi-modal interventions.

India faced consecutive droughts in 2014-15 and 2015-16. Yet due to the resilience of Indian farmers, agricultural production remained stable and so did supply and inflation. Total foodgrain output in 2015-16 is estimated at 252.23 MT while Total foodgrain output in 2014-15 was 252.02 MT. Ministry of Agriculture has been renamed as Ministry of Agriculture & Farmer Welfare. This reflects a paradigm shift in the vision, which puts farmer first. Allocation for Agriculture and Farmers’ welfare has been increased substantially to Rs 35,984 crore.

The Govt realises that agriculture needs to more predictable, productive and profitable. This needs a multidimensional approach to solving farmers’ problem throughout the entire cycle and hence the Govt has come up with solutions to various issues faced by a farmer.

Pre- sowing:

  1. Soil health Card to help farmers make the right choice.

The Govt has distributed 1.84 Cr. soil health cards. The target is to cover all 14 crore farm holdings & provide soil health card to all farmers.

  1. Fertilisers

Long queues for fertilisers are history now. The Govt is ensuring easy availability of fertilisers for farmers. Prices of fertilisers have also been reduced significantly. 100% Neem coated urea is available in the country. This will improve fertilizer use efficiency by 10 to 15 percent and thereby reduce the consumption of urea fertilizer.

  1. Finance

Govt approved Rs 18,276 crore towards interest subvention of farmer loans. This will ensure that a farmer pays 4% interest for short term crop loans, 7% for post harvest loans, 7% in case of natural calamity, against the market rate of 9%.

During sowing:

  1. Irrigation Facilities

Pradhan Mantri Krishi Sinchai Yojana to be implemented in mission mode & 28.5 lakh hectares will be brought under irrigation.  Implementation of 89 irrigation projects under AIBP, which were languishing for a long time, will be fast tracked. A dedicated Long Term Irrigation Fund is being created in NABARD with an initial corpus of about 20,000 crore. 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up under MGNREGA.

  1. Support & Guidance

Scientific advice in the form of sms and calls have been sent to crores of farmers.

After sowing:

  1. Pradhan Mantri Fasal Beema Yojna

The PMFBY comes with the lowest ever premium rate for farmers. The PMFBY comes with One rate for One crop i.e. Kharif crops: 2 %, Rabi crops: 1.5 %, Horticulture Crops: 5 %. There is no capping on premium rates & no reduction in sum insured, thus ensuring full protection for farmers. Since independence, only around 20% farmers have been covered under insurance till now.  PMFBY targets 50%  coverage in next 3 years.

  1. e-NAM

Agriculture marketing is administered by the States as per their agri-marketing regulations, under which, the State is divided into several market areas. This fragmentation of markets hinders free flow of agri commodities from one market area to another and ends up escalating the prices for the consumers without commensurate benefit to the farmer. e-NAM addresses these challenges by creating a unified market through online trading platform, both, at State and National level and promotes uniformity, streamlining of procedures across the integrated markets, removes information asymmetry between buyers and sellers and promotes real time price discovery, based on actual demand and supply, promotes transparency in auction process, and access to a nationwide market for the farmer, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.

Apart from the above measures, a multi-pronged approach has been adopted to augment farmers’ income. Efforts are being made to increase in farm income through support to allied activities like fisheries, animal husbandry and dairy products. 850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for indigenous breeds. Rashtriya Gokul Mission launched to conserve and develop indigenous cow breeds. Fish production has increased from 95.72 lakh tones during 2013-14 to 101.64 tonnes during 2014-15 The fish production for 2015-16 is estimated at 107.9 lakh tones. The ‘Saving-cum-Relief’ component provided to fishermen during fishing ban /lean period of three months has been increased to Rs. 1500 per month under Blue Revolution scheme.

There has also been a significant increase in relief provided by Government. For the years 2010-2015, a provision of Rs. 33580.93 crore was made for State Disaster Response Fund. The same has been increased to Rs. 61220 crore for the period 2015-2020. A relief of only Rs. 12516.20 crore was approved between 2010-14 crore to the States affected by drought and hailstorm. The NDA Government in year 2014-15 alone approved an amount of Rs. 9017.998 crore as relief to the States affected by drought and hailstorm. During the year 2015-16, Rs. 13496.57 crore have already been approved for till now.

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One Nation One Market
September 26, 2016
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It has been 7 decades since we got independence and Sardar Patel united various provinces to make a United India. Political union became a reality, but India did not become one market. NDA Government is working with the aim of uniting India’s markets, to empower our producers & strengthen our consumers. It is with this vision that the NDA Government, led by PM Narendra Modi has taken multiple initiatives to truly achieve One Nation, One Market.

e-NAM

Agriculture marketing is administered by the States as per their agri-marketing regulations, under which, the State is divided into several market areas, each of which is administered by a separate Agricultural Produce Marketing Committee (APMC) which imposes its own marketing regulation (including fees). This fragmentation of markets, even within the State, hinders free flow of agri commodities from one market area to another and multiple handling of agri-produce and multiple levels of mandi charges ends up escalating the prices for the consumers without commensurate benefit to the farmer.

e-NAM addresses these challenges by creating a unified market through online trading platform, both, at State and National level and promotes uniformity, streamlining of procedures across the integrated markets, removes information asymmetry between buyers and sellers and promotes real time price discovery, based on actual demand and supply, promotes transparency in auction process, and access to a nationwide market for the farmer, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.

GST

We had a multitude of taxes across the country. One country had multiple tax rates and multiple rules. Often, the producers ended up paying more and so did the consumers. This will all change with the advent of GST. With GST, there will be one tax rate in the entire country.

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.

One nation, One grid, One price

Transmission capacity in India has been inadequate and unevenly distributed, leading to constraints in supplying power from surplus States to deficit States. States in South India, especially in the peak summer months, would face shortage of power due to congestion in transmission lines. This would result in double-digit prices for these States. NDA Government increased Available Transfer Capacity (ATC) by approximately 71% from 3,450MW in 2013-14 to 5,900MW. This has significantly reduced prices.

The information regarding price and availability of surplus electricity on the grid is being provided to the public through the mobile app, “Vidyut Pravah”. This app also provides the amount of electricity being purchased by States, and whether any shortage has been declared by said State. As per the Vidyut Pravah app, we find that the electricity rates for all States are uniform on many occasions. This is the culmination of multiple steps, which have been taken by the Government.

This increase in transmission capacity has also made it possible for many States to purchase short term power requirement from the National Grid. The Government launched “DEEP (Discovery of Efficient Electricity Price) e-Bidding & e-Reverse Auction portal” for procurement of short-term power by Distribution Companies (DISCOMs). This competitive procurement helps reduce procurement prices thereby benefitting ultimate customers.

UAN

Earlier when a person joined a new job for the first time, he got an EPF account opened by the employer where his provident fund money was deposited. His Provident Fund money was deposited in this account and when the employee left his job, this process began with a new EPF account. This not only needed high transaction costs & filling of multiple forms, but also made employees dependent on their previous employers for validation. With UAN, the employer has no role in the employees transactions and direct communication happens between EPFO and the employer. UAN remains constant & uniform through the employees lifetime & the PF money deposits will be linked to this UAN, leading to easy withdrawals.
These initiatives will go a long way in integrating India’s market while making life easier for the citizens.