Executive Summary:
This document outlines the Indian government's initiatives for small farmer welfare, addressing crop loss due to untimely rain, Kisan Credit Card (KCC) loan limits, and awareness of welfare schemes. It details financial and logistical support provided by the central government through State Disaster Response Funds (SDRF) and National Disaster Response Funds (NDRF). Effective January 1, 2025, the collateral-free agricultural loan limit is increased to Rs. 2 lakh. The government also utilizes mass media to disseminate information about welfare schemes.
Key Points / Main Content:
Disaster Relief for Crop Loss:
* The primary responsibility for disaster management rests with State Governments.
* The Central Government provides logistical and financial support to State Governments.
* Financial relief is provided to affected people through SDRF for notified natural disasters.
* Additional financial assistance from NDRF is available for disasters of severe nature, based on assessment by an Inter-Ministerial Central Team (IMCT).
* Financial assistance under SDRF and NDRF is for relief, not compensation.
Kisan Credit Card (KCC) Loan Enhancements:
* The Modified Interest Subvention Scheme (MISS) provides concessional interest rates on short-term agricultural loans via KCC.
* Farmers receive KCC loans at a subsidized interest rate of 7% with an upfront interest subvention of 1.5% to financial institutions.
* Prompt repayment results in an effective interest rate of 4% per annum.
* Interest subvention is available on restructured loan amounts for the first year due to natural calamities.
* The limit for collateral-free agricultural loans, including allied activities, is increased from Rs. 1.6 lakh to Rs. 2 lakh per borrower, effective January 1, 2025.
Awareness of Welfare Schemes:
* Mass Media Support to Agriculture Extension scheme utilizes DD Regional Kendra, DD Kisan, and All India Radio (AIR) to create awareness.
* 18 DD Regional Kendras, 97 FM stations of AIR, and DD Kisan are used for publicity of schemes, initiatives, and advisories.
* Audio-visual spots broadcasted on Doordarshan (DD), AIR, and private channels inform about Department of Agriculture and Farmers Welfare (DAFW) schemes.
* Publicity is conducted through outdoor advertising and print advertisements in newspapers.
* Social media platforms are used for outreach and publicity of farmers' welfare schemes.
Impact Analysis
State Governments:
* Impact: Primarily responsible for disaster management, damage assessment, and providing relief.
* Action Required: Utilize SDRF funds and coordinate with the Central Government for additional assistance in severe disasters.
Farmers:
* Impact: Benefit from financial relief in case of crop loss, increased collateral-free loan limits via KCC, and awareness of welfare schemes.
* Action Required: Apply for KCC loans, repay promptly to avail interest incentives, and stay informed about welfare schemes through mass media channels.
Financial Institutions:
* Impact: Receive interest subvention for providing KCC loans at concessional rates.
* Action Required: Implement the revised collateral-free loan limit and provide interest subvention as per the scheme guidelines.
Central Government (Ministry of Agriculture and Farmers Welfare):
* Impact: Responsible for providing logistical and financial support, implementing welfare schemes, and creating awareness.
* Action Required: Ensure timely disbursement of funds, effective implementation of schemes, and widespread dissemination of information.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare, the primary governing body overseeing the policies discussed.
National Disaster Management Plan (NDMP): A plan outlining the framework for disaster management in India, assigning responsibility to state governments for relief measures.
State Disaster Response Fund (SDRF): A fund available to state governments in India for providing financial relief to people affected by notified natural disasters.
National Disaster Response Fund (NDRF): A fund used to provide additional financial assistance to states in India affected by disasters of a severe nature, supplementing the SDRF.
Inter-Ministerial Central Team (IMCT): A team that assesses the damage caused by severe disasters to determine the amount of financial assistance required from the NDRF.
Modified Interest Subvention Scheme (MISS): A centrally funded scheme providing concessional interest rates on short-term agricultural loans obtained through Kisan Credit Cards.
Kisan Credit Card (KCC): A credit card scheme that provides farmers with short-term loans for their working capital requirements, with subsidized interest rates under the MISS.
All India Radio (AIR): A national public radio broadcaster in India, used to create awareness and disseminate information about government schemes and advisories to farmers.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 379
TO BE ANSWERED ON THE 22ND JULY, 2025
SMALL FARMER WELFARE
379. SMT. MALVIKA DEVI :
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण मं(cid:287)ी be
pleased to state:
(a) the details of the steps being taken to help small farmers of two three acres of land whose
crops have gotten destroyed due to untimely rain and who haven't applied for fasal bima;
(b) whether the Government has increased the loan limit of kisan credit card as the farmers are
having difficulties due to increase in costs; and
(c) the initiatives taken to ensure the farmers are aware of the welfare schemes initiated for and
reap maximum benefit from them?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण रा(cid:207)य मं(cid:287)ी (SHRI RAMNATH THAKUR)
(a) : As per the National Disaster Management Plan (NDMP), the primary responsibility of disaster
management including damage assessment and providing relief measures on ground level, rests
with the State Governments concerned. The Central Government provides requisite logistics and
financial support to the efforts of the State Governments. The State Governments provide financial
relief to the affected people in the event of 12 notified natural disasters, from the State Disaster
Response Fund (SDRF), already placed at its disposal, in accordance with approved items and
norms of Government of India (GOI). However, in the event of disaster of a 'severe nature',
additional financial assistance is extended from the National Disaster Response Fund (NDRF), as
per laid down procedure, which includes an assessment based on the visit of an Inter-Ministerial
Central Team (IMCT). The financial assistance provided under SDRF and NDRF is by way of relief
and not for compensation.
(b) : The Government is implementing a 100% centrally funded Central Sector Scheme known as
the Modified Interest Subvention Scheme (MISS) across various States and UTs in pan India. This
scheme provides concessional interest rates on short-term agricultural loans obtained by farmers
through Kisan Credit Cards (KCC) for their working capital requirements.Under this scheme, farmers receive KCC loans at a subsidized interest rate of 7%. To facilitate
this, an up front interest subvention (IS) of 1.5% is provided to financial institutions. Additionally,
farmers who repay their loans promptly receive a 3% Prompt Repayment Incentive (PRI),
effectively reducing the interest rate to 4% per annum. To provide relief to the farmers on
occurrence of natural calamities, the component of interest subvention is available on the
restructured amount to banks for the first year and such restructured loans would attract normal
rate of interest from the second year onwards as per the policy laid down by RBI. Interest
subvention and prompt repayment incentive on restructured crop loans is also given to farmers
affected by severe natural calamities for a maximum period of 5 years based on the report of Inter-
Ministerial Central Team (IMCT) for grant of NDRF assistance and Sub-Committee of National
Executive Committee (SC-NEC).
Keeping in view the overall inflation and rise in agriculture input cost over the years, it
has been decided to raise the limit for collateral free agricultural loans including loans for allied
activities from the existing level of Rs.1.6 lakh to Rs.2 lakh per borrower, effective from 1 January
2025.
(c): The Government of India is implementing a Central Sector Scheme “Mass Media Support to
Agriculture Extension” through DD Regional Kendra, DD Kisan and All India Radio to create
awareness and dissemination of scheme benefits and advisories to farming community. Under the
scheme, 18 DD Regional Kendras, 97 FM stations of AIR and DD Kisan are being utilized for wider
publicity of department schemes, on-going initiatives, policy decisions, and advisories. In addition,
"Audio-Visual spots are being used to broadcast and telecast information about the DA&FW
schemes Doordarshan (DD), All India Radio (AIR) and private TV and radio channels as a part of
‘Focused Publicity and Awareness Campaign’. Besides, publicity & awareness is also carried out
through Outdoor Publicity as well as through print advertisements in leading newspapers across
the country. The social media platforms viz Facebook, X, Instagram, Threads, YouTube, LinkedIn,
WhatsApp, Public App etc are also being used for better outreach and wider publicity about details
of Farmers Welfare Schemes of the Department.
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