Agriculture Minister wants cheaper credit, not loan waivers

Minister says working on measures to increase the reach of farm credit

Though many states have been pressing for a farm loan waiver, Agriculture Minister Radha Mohan Singh has categorically said the Centre isn’t in favour of any such proposal at the national level; instead, it will work towards making adequate credit available to farmers at cheap rates and on time.
 
“Waiver of farm loans by the Uttar Pradesh government is their decision, we have no such proposal at the national level,” Singh said while talking to a group of reporters.
 
He said to increase the reach of farm credit, particularly for small and marginal farmers, the government is working on several measures, including computerisation of primary agriculture credit societies (PACS).

 

“This approach of increasing returns on farming is the only healthy and sustainable way. It will make agriculture a viable and profit-generating enterprise, which is our aim,” Singh said.
 
On the controversial issue of slaughter of old cattle, the minister said his ministry’s approach was to put old non-milch livestock to productive use instead of their slaughter.
 
He said urine and dung from old non-milch cows could be used for making compost, which could then be sold commercially. The Gokul Grams, being built under the National Gokul Mission, were working precisely towards this.
 
On taxing agricultural income, the minister said what NITI Aayog meant was going after those who misuse the blanket exemption given to such income.

 
The agriculture minister also said the Centre had launched the second phase of the Soil Health Card Scheme in May. In the first phase, 100 per cent soil samples have been collected for distributing a health card to all 140 million farmer families in the country. “The work of distributing the cards would be completed by June 2017,” Singh said.
 
Under the programme, every farmer in the country would be provided with a soil health card for soil management, which would be renewed after every two years to map the changes in soil composition.
 
The minister also said after recording the highest-ever production in pulses, the government was looking to raise domestic production of palm oil so that their imports come down in the next few years.

 
“The Centre recently abolished the land ceiling limit for assistance to palm oil plantations, which would encourage big corporates and also foreign investment in palm oil production, thus lowering the country’s import dependency,” Singh said.
 
He said to end constant fluctuation in the price of agricultural commodities, the government is planning to advise all districts in the country to design supply and value chains for major commodities in a district to ensure proper alignment of major components.
 
The minister also refuted allegations that the prime minister’s new crop insurance scheme was benefiting insurance companies, saying most such companies were selected through a transparent bidding process by the state governments, while the Centre, on its part, was regularly monitoring these companies to ensure maximum coverage to farmers and timely settlement of claims.

 
He said in 2016-17, the claims reported had been lesser than the previous because 2015-16 was a drought year.
 
“The success of any insurance scheme, including that of crop insurance, should be based on its performance over three-five years when the years of both good and bad monsoon is seen,” Singh said.
 
On doubling farmers’ income, the agriculture minister said Madhya Pradesh had shown high growth rates in agriculture was possible through concerted efforts and the Centre had identified various sources which would contribute to increasing farmers’ income, mainly through diversifying into horticulture, dairying, fisheries, bee farming, etc.

 
“The cultivated area under cereals is as high as 55 per cent but gives just 30 per cent income; on the contrary, horticulture, dairy, etc, have greater scope for contributing to farmers’ income,” Singh said.
 
Farmers’ progress

• The Centre has no proposal to waive farm loans at national level
• All districts in the country to map supply and value chains for all farm commodities to ensure alignment among various components
• The second phase of soil health programme started from this month
• Under the Soil Health Card Scheme, every farmer in the country would be provided with a soil health card for soil management by June 2017
• This would be renewed after every two years to map the changes in soil composition
• The success of Pradhan Mantri Fasal Bima Yojana to be judged in the next three-five years