Farmer Associations' report reveals 300 % surge in agriculture budget allocation over past 9 years

NEW DELHI, 27 May 2024: The Federation of All India Farmer Associations (FAIFA), a non-profit organization representing the cause of millions of farmers and farm workers of commercial crops across the States of Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh, Telangana, Karnataka etc. convened a seminar recently at the Constitution Club of India, New Delhi - Ensuring Farmer Livelihoods: Enhancing Farmer Incomes Through Sustainable Farming Practices.

During the seminar, FAIFA released a Report titled - TRANSFORMATION IN INDIA’S AGRICULTURE which highlighted key achievements in the agriculture sector in the last decade. The Report also put forward strategies to enhance farmer incomes in a sustainable manner. The seminar was graced by GVL Narasimha Rao, Former Member of Parliament, Rajya Sabha. The Key Speakers in the seminar were Prof MV Ashok, Senior Adviser BAIF Research and Development Foundation Pune and Former Chief General Manager, NABARD and Dr. JP Tandon, Former Director, Indian Council of Agricultural Research.

While addressing the audience during the seminar Chief Guest Sh. GVL Narasimha Rao, Former Member of Parliament, Rajya Sabha said, “With my extensive experience in the agriculture sector including the dairy sector, I understand the challenges confronting farmers. So I can say with some conviction that farmers must unite and collaborate to address these challenges collectively. Through initiatives such as Farmer Producer Organizations (FPOs) or cooperatives, they can harness the strength of the collective organization to better their circumstances and secure a brighter future for themselves.”

“Indian agriculture is currently undergoing a significant transformation, driven by the remarkable accomplishments of our government, under the leadership of our Honourable Prime Minister. Over the past decade, we have consistently achieved a commendable growth rate of 4 percent in the sector and I am optimistic that this momentum will only accelerate in the coming years, surpassing even the 4 percent mark. With the projected annual population growth rate of 2.5 percent, our nation is poised to not only meet its own food requirements but also have surplus produce for export to global markets. It’s a 'Modi Ki Guarantee' that in the next 10 years there will be bumper growth for farmers and the agricultural sector.” Narasimha added.

The FAIFA Report put the spotlight on the term "Jai Kisan," emphasizing that the diverse fabric of India’s agricultural economy has been a consistent aspect of its identity throughout history. It acclaimed the farmers or the Annadaatas and stated that they have earned the foremost access to opportunities without question. The FAIFA Report commended the government's decade-long efforts, acknowledging a comprehensive approach that has borne fruit. From initiatives supporting farmers' income, agricultural insurance schemes and expanded irrigation coverage to promoting organic farming, empowering women farmers, bolstering infrastructure and digitizing services, the government has embraced a holistic strategy in championing the cause of the farmers.

The Report conducted an extensive analysis of the government's achievements, providing a wealth of facts and figures. Some noteworthy highlights provided in the document include:

• A remarkable 300 percent plus increase in budget allocation for agriculture over the span of 9 years
• Over 11 crore farmers benefited from the PM Kisan scheme
• A massive 7350 percent increase in pulses procurement at MSP
• Production of over 330.5 million metric tons of food grains in the fiscal year 2022-23
• Creation of 4.60 lakh Seed Villages and production of over 102 million metric tons of seeds
• Recognition of over 7,000 Agri and allied start-ups in the agricultural sector
• Coverage of 76 lakh hectares under the Per Drop More Crop (Drip Irrigation) initiative since 2015
• Achievement of 221.06 million metric tons of milk production, marking a 51 percent increase over 9 years
• Coverage of over 11 lakh hectares under the Paramparagat Krishi Vikas Yojana (PKVY) since 2016, among various other notable accomplishments

Javare Gowda, President, Federation of All India Farmer Associations (FAIFA) on the release of the Report said, “The strides made by the government in the agriculture sector and for farmers are commendable. Efforts are being tirelessly invested in augmenting farmer income and ensuring their security, aiding our invaluable 'Annadata' in feeding our nation and the world too. Key policy initiatives like the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and Pradhan Mantri Fasal Bima Yojana (PMFBY) have played pivotal roles in extending financial and income support to farmers. For instance, the PM-KISAN Samman Yojana annually provides direct financial assistance to lakhs of farmers, including marginal and small farmers, totalling over Rs 2.80 lakh crore disbursed so far. Also, crop insurance coverage has been extended to 4 crore farmers under PMFBY.”

The comprehensive crop insurance policy serves as a vital shield for farmers, offering protection against unforeseeable natural calamities thereby safeguarding their livelihoods and preventing financial ruin. Another significant achievement highlighted in the Report is the historic increase in Minimum Support Prices (MSPs), where for the first time the MSP for all 22 crops was set at a minimum of 50 percent more than the production cost. The government has ensured this since the agricultural year 2018-19.

Notably, there has been a consistent upward trajectory in MSPs for 22 Kharif and Rabi crops. Over the past decade, farmers have received nearly Rs. 18 lakh crore as MSP for paddy and wheat crops alone, a figure 2.5 times higher than the preceding decade before 2014. Additionally, government procurement of oilseeds and pulses crops, which was previously negligible, has seen a significant increase. In the last decade, farmers producing oilseeds and pulses have received over Rs. 1.25 lakh crore as MSP, underscoring a tangible commitment to supporting farmers across diverse crop categories.

Ather Matheen, Vice-President, Federation of All India Farmer Associations (FAIFA), “The MSP initiatives by the government have been a tremendous relief for farmers across the country. The significant increase in Minimum Support Prices for various crops has provided much-needed stability and assurance to farmers, enabling them to invest confidently in their agricultural endeavors. We also earnestly appeal to the government to continue this commendable work and further promote digital platforms for the benefit of farmers. Platforms like e-NAM hold immense potential to revolutionize the agricultural landscape by facilitating seamless online trading of agriculture and horticulture commodities, empowering farmers with greater market access and fairer prices. Moreover, initiatives like the Agriculture Infrastructure Fund will play a pivotal role in boosting farmer incomes in the long run, fostering sustainability and prosperity within the agricultural sector."

Launched on July 8, 2020, the Agriculture Infrastructure Fund (AIF) is a financing facility aimed at developing post-harvest management infrastructure and community farm assets, focusing on infrastructure at the farm gate. The scheme offers medium to long-term debt financing for viable projects through interest subvention and credit guarantee support. 

Under AIF, financing facility are being provided to create and modernise post-harvest management infrastructure like dry and cold storage infrastructure, ripening chambers, pack houses, primary processing centres, assaying units, cold chains, supply chain infrastructure including e-marketing platform, logistic facility alongside community farming assets like bio-stimulant production, farm and harvest automation, infrastructure for smart and precision farming, organic input production, remote sensing and IoT- based farming infrastructure among others.

The FAIFA Report also pointed out the government’s effort to actively promote digital inclusion and mechanization to foster productivity and stressed on the continuity of such initiatives. The launch of the digital platform e-NAM (National Agriculture Market) in 2016 has facilitated the integration of Agriculture Produce Marketing Committees (APMC) mandis and has provided multi-faceted benefits to farmers, farmer-producer organizations (FPOs), buyers and traders.

The number of markets linked to the e-NAM platform has increased from 250 in 2016 to 1,389 in 2023, facilitating the online trading of 209 agriculture and horticulture commodities. The platform has witnessed the registration of over 1.8 crore farmers and 2.5 lakh traders promoting market opportunities through a transparent price discovery system and online payment facility. Further, the value of trade on the platform has increased from Rs 0.3 lakh crore in August 2017 to over Rs 3 lakh crore in November 2023.