MODI’fying India: PM Modi on Agricultural Reforms

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After covering Modi Govt works for army and defense. Now following another part of the slogan Jai Jawan, Jai kisaan, I am going to cover the steps by which Modi is reforming Agriculture sector and Farmers, let us evaluate that.

Many schemes are running from the govt for the welfare of farmers. I will be covering few of them.

Pradhan Mantri Fasal Bima Yojna (PMFBY)

Crop insurance in India stared in 1972 and again Govt of India under PM Rajiv Gandhi started Comprehensive Crop Insurance. Later it became National Agriculture Insurance Scheme. Again in 2016, PMFBY is launched by current PM Narendra Modi. So question let us compare the earlier insurance and new insurance –

Comparison with predecessor Insurance Schemes

  • Earlier, there was limit in upper cap on premium which govt should pay, while in PMFBY farmers will be paying 1.5% for Rabi and 2% on Kharif, the remaining premium will be paid by the government. So, less load on farmers.
  •  It covers the natural and localized calamities which were earlier uncovered.
  • Earlier mainly insurance was provided to the farmers taking loans for farming, now any farmer can get the insurance on the same conditions.
  • A premium will be low if the area is prone to drought or flood, that provision was not earlier.
  • Use of technology to capture data, calculation of loss and encouraging farmers to adopt the technology for farming.
  • It also enables speedy claims settlement, earlier it used to take 60-80 days.
  • Private insurance companies were also engaged this time to have better penetration and awareness in farmers.
  • Plan is to cover 145 Million hectare cropped area, in next 5 years.
  •  It is in sync with the promise made by Narendra Modi to double the farmers income by 2022.
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Results –

  1. 47.5 million hectares of the cropped area being covered in 2017-18.
  2. This made India, the 3rd largest insurance market after USA and China.
  3. In 2016-17, 5.74 Crores farmers were covered.
  4. In 2016-17, a total payout of Rs 12,959.10 crore to 1.12 crore farmers was made under PMFBY. That works out to Rs 11,571 per farmer
  5. This report in the Times of India by Agriculture Secretary GOI also highlights the benefits of the scheme for farmers.
  6. For more details read this PIB reports.

Pradhanmantri – Anndata Aay Sanrakshan Abhiyan (PM – AASHA)

Another ambitious scheme by PM Modi to improve the conditions of farmers. This is launched in September 2018.  

Another pro farmers initiative by Narendra Modi, this scheme has objective to increase the MSP by 1.5 times of the cost of the production and targets to double the farmers income by 2022.

This is an umbrella scheme of 3 schemes and states are given freedom to chose

Price Support System (PSS)

Government agencies will procure the listed crops directly through NAFED and FCI.  Earlier only NAFED was buying directly from formers.

Price Deficiency Payment Scheme (PDPS)

Under this scheme, a former can go to market and sell his products. If he gets less than listed MSP, price difference will be covered by government.

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Pilot of Private Procurement and Stockist Scheme (PPPS)

In this pilot scheme, government is planning to engage private companies as well for procurement.

Total fund allocated for this is 45,550 crores.

History of MSP –

            In 2013, National Sample Survey Office surveyed in 70 rounds and concluded that only 6% of farmers could get the MSP. In 2016 NITI Aayog, evaluated that 79% of farmers are not happy with MSP distribution.

            As of now, we don’t have any concrete outcome of PM-AASHA but we can say satisfaction of farmers may have increased as they are getting direct debit in to their account. here Jan Dhan Yojna is playing big role. Earlier, lakhs of ghost beneficiaries have disrupted the government schemes

National Commission for Farmers (NCF)

            In 2004, then Agriculture Minister Rajnath Singh set up the National Commission for Farmers, first time after independence, which was formed with the objective of planning and suggestions for farmers upliftment. Former Chairman of NCF, MS Swaminathan, himself says here that Nothing concrete could happen on its recommendations until Narendra Modi became Prime Minister.
He gives more details in this report here.

Important Notes – This is ongoing articles, it will be updated based on available information and updates. Feel free to share the link with everyone. Please don’t copy paste as these are results of hard work and immense analysis and it will be updated from time to time. It can’t be reproduced in parts or full without the written permission of taagung/writer.

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Hindi version of article is coming soon. till then

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