Agriculture Schemes For Farmer Welfare In India

Agriculture Schemes.
Agriculture Schemes.

Agriculture Schemes:

The following is all about Agriculture Schemes or Kisan Welfare Schemes.

List of Schemes by Indian Government for the welfare of Farmer and Agriculture Schemes

Indian Ministries have come up with good schemes from time to time to save the agricultural lands and farmers. These schemes listed below are the central, state and from the collaboration between both.

Agriculture Schemes  – Kisan Vikas Patra (KVP):

Kisan vikas patra is a saving scheme introduced by the Indian government.  This scheme has the facility to invest unlimited money by purchasing the KVS certificated from post offices in various denominations. KVP became very popular among the farmers.

  • KVP certificates can be obtained in the denominations of Rs 1000, Rs 5,000, Rs 10,000 and Rs 50,000.
  • Minimum investment amount is Rs 1000. And there is no upper limit.
  • KVP doesn’t have any tax benefits, and no deduction u/s 80C is permitted on investment. And maturity/withdrawal is fully taxable.
  • And investment amount will be doubled in 115 months with rate interest 7.3%.
  • The amount should be withdrawn only after 118 months.
  • Maturity period for KVP is 30 months.
  • There is an option for premature encashment of the KVP certificate is not permissible, encashment of certificate is done only in the case death of the certificate holder or on the order of the courts.
  • KVP provides safe and secure investment option to all the small investors and also promotes the savings rate in the country.

Agriculture Schemes – Pradhan Mantri Fasal Bima Yojana (PMFBY):

This scheme by Indian government provides insurance coverage and financial support to the farmers in case of failure of any crops due to natural disaster or pests and diseases. This scheme support farmer to stabilize their financial status and ensures their continuance in agriculture. This scheme ensures the flow of credit to the farming sectors.

This insurance scheme is implemented by following agencies:

  • Commercial Banks, co-operative banks and rural banks and their regulatory bodies government departments of agriculture, co-operation, horticulture, statistics, Revenue, panchayati raj etc.
  • Private insurance bodies that involved in this insurance scheme are ICICI-Lombard General Insurance, HDFC-ERGO General Insurance company Ltd, IFFCO-Tokio General Insurance Company Ltd, Cholamandalam MS General Insurance Ltd, Bajaj Allianz General Insurance Company Ltd, Reliance General Insurance Company Ltd, SBI General Insurance Ltd, Univeral Sompo General Insurance Company etc.

This insurance scheme covers all the crops which productive and grown during the notified season in a notified area. These notified areas are decided by State Government, size, and unit of Insurance depends on the area under cultivation.

Yield losses: Yield losses covered due to non-preventable risks, such as

  • Natural Fire and Lighting.
  • Storms, cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
  • Floods, drought, dry spells.
  • Pests and Diseases etc.

Prevented Sowing: This scheme ensures the farmers having intent to sow and incurred expenditure for the purpose, are prevented from sowing the insured crop due to adverse weather conditions. They can claim up to a 25% of the sum-insured.

Post-harvest Losses: the insurance covers the maximum period of 14 days from harvesting for those crops which harvested and kept for drying and are lost due to cyclones, unseasonal floods, and rains in the country.

Insurance sum insured will be equal to the Scale of Finance for that crop as fixed by District Level Technical Committee (DLTC) which may extend up to the value of the threshold yield of the insured crop at the option of the insured farmer.

Agriculture Schemes – Paramparagat Krishi Vikas Yojana:

This is an amazing initiative by the Indian government to promote the Organic farming. To register in this scheme the group of farmers who are willing to do organic farming under PKVY and must have farming land of 50 acres. For every farmer enrolling in the scheme will be provided with INR 20,000 per acre for the organic seeds, harvesting costs transporting by the government for three years’ time. For this scheme, the government has allocated the huge sum of Rs 412 crores.

Agriculture Schemes – Soil Health Card Schemes for Farmers in India:

This scheme provides the complete report of soil health and quality. And the farmers will be guided by professionals to improve the quality of the soil and its nutrient requirements. Soil monitoring is done on the regular basis. This card helps the farmers to get complete information on the crop-wise recommendations of nutrients and fertilizers based on the type of the soil. This increases the production.

Agriculture Schemes – Pradhan Mantri Krishi Sinchayee Yojana:

This scheme is launched with the objective to supply water all irrigation land, government motto ‘ HarKethi to Paani’. This scheme aims to increase agricultural lands and reduce the wastage of water. Its main targets for assured irrigation by harnessing rainwater at micro level through ‘Jal Sanchat’ and Jal Sinchan. The target under micro-irrigation was 8 lakhs ha for the year 2017-18.

Agriculture Schemes – e-NAM (National Agriculture Market): this program is launched to initiate the e-marketing platform at the national level. This innovative market process is revolutionizing agriculture markets by ensuring them a better price discovery and motivates the farmer to get improved prices for their production. A target of 400 markets to e-NAM had been set for this year. Nearly 50 lakhs farmers where registered to this portal in 2017

Get more details from National Agriculture Market.

Agriculture Schemes – Interest Subvention Scheme (ISS):

In this scheme, the government provides interest subvention of 3% on short-term crop loans up to Rs 3 lakhs. Loans are available for the farmers at 7% interest rate, under prompt payment interest is reduced to 4%. Under this scheme, to provide relief to the farmers due to natural disasters, the interest subvention of 2% shall continue to be available to banks for the first year on a restructured amount. In order, the support the farmers in losses and to encourage them to store their products in warehouses against negotiable warehouse receipts, and other benefits will be available for small and medium scale farmers having Kisan credit card for a period of six months post-harvest on the same rate as available to crop loan.

Agriculture Schemes – There are different types of agricultural loans in India by the government and private sectors:

  • Farm Operating Loans: Loan gives to the farmers for their agricultural needs.
  • Farm Ownership Loans: Loans given for buying machinery, livestock etc.
  • Fisheries Programs: Loans for fish farming and its all the activities.
  • Warehouse or Godown loans: Loans for construction of godowns or warehouses.
  • Other agricultural loans include subsidies from the government due to loss of crop, crop damage etc.

Agriculture Schemes – Best Loan Schemes from Banks in India for Farmers:

  • ICICI Bank Agri Term Loan:

This scheme provides the loans for the farmer to buy cattle or agricultural machinery or equipment.  You the loan at minimum interest rate 13.50% and the loan can be repaid over a period of 3 to 4 years.

  • Allahabad Bank Crop Loans:

Agriculture Schemes – Akshay Krishi – Kisan Credit Card Scheme: The Kisan credit card is a unique scheme for farmers from which they can draw a cash loan for crop production and domestic needs. And the maximum limit is 10 lakhs and loan is sanctioned for 5 years.

  • Andhra Bank Agricultural Loans:

Agriculture Schemes – AB KisanSampathi: This loan scheme gives security for the farmer against crop sale when the prices of commodities tend to be low. The maximum loan limit is RS 50 lakhs per farmer depends on the area of the crop cultivated by the farmer and yield.

Agriculture Schemes – KisanKalpataru: This loan scheme serves all the credit requirements of farmers from planting to harvesting. The loan limit is fixed at 100% of the value of agricultural land or at a maximum 25 lakhs.  The loan should be repaid within 9 years and it needs collateral security for the amount more the 2 lakhs.

And many other Banks like SBI offer different scheme as below:

  • Kisan Shakti Yojana: This scheme provides investment loan, personal loans and even repayment of debt to money lenders. The loan limit is 50% value of agricultural land or 5 times of net farm income.
  • Dairy Plus Scheme: This scheme from banks provide loans for construction of sheds, purchasing animals, machinery, and dairy equipment.
  • Farm Mechanization Schemes: In this scheme, banks give loans for purchasing the farming machinery like tractors, harvesters etc.
  • Horticulture finance: In this scheme, the bank provides loans for the development of fruit orchards like mango, grapes, apple etc. They also give loans for polyhouse development and greenhouse development.

And as per the RBI rules, the agricultural loans processing should not exceed 1% of gross loan amount and processing fee should not be included in the margin cap or interest cap of 26%.

Read about Polyhouse Rose Farming.


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