Subsidies to Farmers under Various Governmnet Schemes
Farmers are the backbones of Indian economy. As per the UPA government providing financial and other sorts of benefits to the farmers of the country will help us to increase the GDP rate. In past couple of years the Modi government has started quite a number of schemes and policies to provide financial as well as other benefits to the farmers. Some of the schemes are being revised and remodelled to make them easier. In recent times government has again made a decision to give away subsidies to the farmers of the nation under various agricultural schemes. In the last week of the month July 2016, the Minister of State for Agriculture and Farmers Welfare, Mr. Parshottam Rupala has stated in Lok Sabha about the several subsidies that will be given to the farmers under various schemes in India.
Subsidies to the farmers
Subsidies are the financial benefits that are given to the farmers for their betterment. In India in last few years the rate of subsidy has evenly grown up to 55-60% on an average. Here in the next segment we will briefly discuss about the various schemes and subsidies that are announced by the government of India.
Subsidies under various schemes
- Rashtriya Krishi Vikas Yojana (RKVY): under this scheme the state government provides 100% grants to the farmers depending upon their prospective projects. The state level sanctioning committee releases the grant once everything is verified.
- National Food Security Mission (NFSM): under this scheme the subsidies are being provided to the farmers for the development of the machineries to improve the productivity of the farms.
- Agricultural Marketing Infrastructure (AMI): it is a sub-scheme under the scheme Integrated Scheme for Agricultural Marketing. Under this scheme, beneficiaries are being provided subsidy at the rate of 25% to 33.33% for creation of the storage infrastructure in the farm.
- Bringing Green Revolution to Eastern India Scheme (BGREI): under this scheme two types of subsidies are being provided to the farmers. One is at the rate of 50% of the cost of procurement, storage creation, marketing, infrastructure and such and another subsidy of 100% for the community assets under this scheme.
- National Horticulture Mission (NHM): under this scheme there are different types of market subsidies that are provided for the improvement of the Horticultural products. The subsidies are provided for the marketing infrastructure and post harvest management (PHM). The various subsidies under different markets are as follows:
Subsidies under various markets
- Rural Primary Market: for the Rural Primary markets two rates of different subsidies are available. In this market 40% of subsidies are given to the farmers living in general areas. On the other 55% of the subsidies are provided to the farmers living in the hilly and tribal or backward areas. Total of Rs. 25 Lakhs are being considered as project cost for them.
- Terminal Market Complex: in this market, under Purchasing Power Parity mode, the farmers are given the assistance of 25% up to 40% for the budget of 50 Cr of project cost for the budget of Rs. 150 Cr per project. This includes the 25% of floor subsidy and 15% of bidding subsidy.
- Wholesale Markets: in wholesale markets, the rate of 25% is provided as subsidy to the farmers living in general areas and rate of 33.33% is provided to the hilly and tribal or the backward areas. The total project cost under this market is considered to be 100 Cr.
- PHM Component: under PHM component, the rate of 35% to 50% is provided to the farmers for the post harvest infrastructure development.
All these subsidies are vastly available in all the agricultural areas in India. There is no such provision in which the subsidies can be called off or cancelled by any authority. All these subsidies are provided for the betterment of the various areas related to the agricultural sector in different zones, especially the backward areas where farming and harvesting are tough to attempt.
Table of Content – subsidies at a glance
|1||Rashtriya Krishi Vikas Yojana||100%|
|2||National Food Security Mission||Improvement of machineries|
|3||Agricultural Marketing Infrastructure||25% to 33.33%|
|4||Bringing Green Revolution to Eastern India||50% of the cost, 100% for the community asset|
|5||National Horticulture Mission||· Rural primary market: 40% (general), 55% (hilly and tribal)|
· Terminal market complex: 25% to 40%
· Wholesale markets: 25% (general), 33.33% (hilly and tribal)
· PHM Component: 35% to 55%