Agriculture subsidy schemes for farmers

Introduction :

  • There are various agricultural schemes for farmers to get subsidies from Government of India . These benefits help farmers meet there pre and post harvest needs , they even get help from government in times of natural disaster/calamities . These benefits can be short term as well as short term based on type of subsidy they are getting for example getting cash benefit from government monthly or annually is a short term subsidy benefit on the other hand getting solar power system installed or getting pump sets is long term subsidy benefit.

Various types of subsidy schemes for farmers are as :

1-Pradhan Mantri KIsan Samman Nidhi (PM-KISAN) :

  • This PM-KISAN scheme is being implemented by the Ministry of Agriculture and Farmer’s Welfare.
  • The amount will be given in three installments of Rs.2000 each, Rs 6000 annually.
  • The amount will be transferred directly to the  beneficiaries bank accounts via Direct Benefit Transfer (DBT).
  • This scheme is  made effective from December 1, 2018 retrospectively.
  • All landholding farmers irrespective of the size of their land holdings.
  • It has left the landless tenants out of its scope.
  • The  identification of beneficiary farmer families will be done by the State / UT Governments.
  • Documents required for verification are :Citizenship certificate, Landholding papers, Aadhaar card,Bank account details.

2-Pradhan Mantri Fasal Bima Yojana (PMFBY) :

  • In Pradhan Mantri Fasal Bima Yojana (PMFBY) there is no capping in premium and there is one premium rate throughout the India.
  • In PMFBY ,It is 1.5%, 2% and 5% for all Rabi, Kharif and horticultural/commercial crops, respectively.
  • Balance premium to be paid by the Government to provide full insured amount to the farmers in crop loss in case of  natural disaster/calamities.
  • No upper limit on Government subsidy. Even if balance premium is 90%, it will be given by the Government.
  • The use of technology will be encouraged on wide scale. 
  • Smart phones to be used to capture and upload data/photos of crops to reduce the delays in claim payment to farmers.
  • Use of Remote Sensing Technology & Drones for quick estimation of crop losses to get money transferred to account fastly by Direct Benefit Transfer(DBT).
  • It also covers  post-harvest losses.
  • It also covers localised crop losses for example draughts, hailstorms , flood etc.
  • In past,it was mandatory for farmers who have taken institutional loans from banks but It is  optional for farmers who have not taken institutional credit.
  • Enrolment under the PMFBY Scheme to be made voluntary for all farmers.
  • There is exemption from Service Tax liability of all the services involved in the implementation of this scheme.
  • Farmers can apply online for Crop Insurance from the link – https://pmfby.gov.in/ .

3-  Livestock Insurance Scheme :

  • Livestock Insurance Scheme aims at managing risk and uncertainties by providing protection method to the farmers against any eventual loss of their animals.
  • It may be due to death and to show the benefit of the insurance of livestock to the people.
  • Animals Covered in Livestock Insurance Scheme are –
  1. The indigenous / crossbreed milch animals.
  2. Pack animals which includes Horses, Donkey, Mules, Camels, Ponies and Cattle/Buffalo Male etc. 
  3. And Other Livestock for example Goat, Sheep, Pigs, Rabbit, Yak etc.
  • Subsidy benefits is being be restricted to 5 animals per beneficiary per household for all animals (except sheep, goat, pig and rabbit).
  • If beneficiary has  sheep, goat,rabbit and rabbit the benefit of subsidy is to be restricted which will be based on “Cattle Unit” and one cattle unit is equal to 10 animals ,which equals to a total of 50 animals.
  • If a beneficiary has less than 5 animals or 1 Cattle Unit, then he/she can also get the benefit of subsidy.
  • Insurance done at their current market price.
  • Premium Rates are as under :
  1. Premium rates for one year policy in –

Normal Areas – 3.0% ,

North Eastern Region / Hill areas / LWE Affected areas -3.5%,

Difficult areas – 4.0 %

2.Premium rates for three year policy in –

  Normal Areas – 7.5 % ,

North Eastern Region / Hill areas / LWE (Affected areas – 9.0%, Difficult areas – 10.5 %).

4- Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan(PM KUSUM) :

  • PM KUSUM is for farmers for installation of solar pumps and grid connected solar and other types of renewable power plants in the country.
  • State Nodal Agencies of Ministry of New and Renewable Energy (MNRE) will coordinate with States/UTs, Discoms and farmers for implementation of the scheme.
  • Installation of grid-connected solar power plants each with the  capacity of up to 2 Mega Watt in the rural areas.
  • It comes with 30% subsidy from the central government and also 30% from state government and with is a provision to take bank loans for 30% of the cost.
  • So, farmers have to pay only only 10% of the cost to buy solar pumps.

5- Seed Village Programme :

  • Seed Village covers all Agricultural Crops.
  • To enhance the quality of farmer saved seeds a financial assistance for distribution of certified seeds at 50% cost of the seed for production of quality seeds.
  • Assistance to train the farmers on seed production and seed technology at Rs.15000 for a group of 50 to 150 farmers.
  • To encourage farmers to develop storage capacity of appropriate quality  assistance of 33% with respect to a maximum of Rs. 3000 for SC/ST farmers and  25% with respect to maximum of Rs. 2000 for other farmers for procuring seeds storage bin with capacity of 20 quintal .
  • Assistance 33%  with respect to maximum of Rs. 1500 to SC/ST farmers and 25%  with respect  to maximum of Rs. 1000 for other farmers for making seeds storage bin of 10 quintal capacity in the seed villages ,where seed village scheme is being implemented.

6- National Food Security Mission (NFSM) :

Rice :

  • Rs.1000  per quintal or 50% of the cost whichever is less for certified hybrid rice seed production.
  •  Rs.2000 per quintal or 50% of Seeds cost whichever is less for certified hybrid rice seed distribution.
  • Rs.5  per kg or 50% of the cost, whichever is less for certified high yielding varieties seed distribution.
  • Full cost of Seed Mini kits of high yielding varieties.

Wheat :

  •  Rs.5 per kg or 50% of the cost whichever is less for certified high yielding varieties seed distribution.
  • Full cost of Seed Mini kits of high yielding varieties.

Pulses :

  • Rs.1000 per quintal for foundation and certified seeds production.
  • Rs.1200  per quintal or 50% of the cost whichever is less for certified seed distribution.
  • Full cost of Seed Mini kits of high yielding varieties.

Related Articles :

Also Read : pradhan-mantri-fasal-bima-yojana-pmfby

7- Kisan Credit Card Scheme :

  • Features / Benefits of the Kisan Credit Card :
  • The beneficiaries under the scheme will be issued with a Debit card / Smart card  .
  • Eligible farmers will be provided with a Kisan Credit Card and a pass book .
  • Cash credit facility involving any number of withdrawals and repayments within the limits.
  • Limits to be fixed on the basis of scale of finance, operational land holding and cropping pattern.
  • Withdrawals through slips or cheques.
  • Validity of Card  for 5 years which is subject to annual review.
  • An incentive for good performance.
  • Security,rate of interest etc. as per RBI norms.
  • In case of crop failure due to natural calamities Conversion/reschedulement of loans also permissible .
  • Eligibility for Kisan Credit Card :
  • The small farmers.
  • The marginal farmers.
  • Share  croppers.
  • Lessee and  tenant farmers.
  • The self-help groups (SHGs) or joint liability groups(JLGs).
  • This scheme also extends to the fisheries and animal husbandry sector.
  • Age limit :Minimum Age – 18 years and Maximum Age – 75 years.
  • If a borrower is a senior citizen (above 60 years), a co-borrower is mandatory ( should be a legal heir).
  • Loan Amount for Kisan Credit Card :
  • Upto Rs. 3 Lakh.
  • Government  provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, making the credit availability at a effective rate of interest , only 4%.
  • Rate of Interest :
  1. Rate of Interest will be based on  Base Rate and which is left to the discretion of the banks.
  • Additional Insurance Scheme with Kisan Credit Card :
  • With this Kisan Credit Card ,  social security to the PM KISAN beneficiaries is also being provided, eligible farmers will also be enrolled for the Pradhan Mantri Suraksha Bima Yojana(PMSBY) and Pradhan Mantri Jeevan Jyoti Beema Yojana(PMJJBY), after obtaining their consent. 
  • These schemes provide accident insurance and life insurance, at a premium of Rs.12/- and Rs.330/- respectively for an insured value of Rs.2 lakh in each case.

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Shivanshu Mehta

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