Subsidy under Various Scheme For Farmers
More than 50% of total Indian population still depends on the agriculture for survival. Farmers who don’t own the lands or those who own a large area of lands are the ones who have to depend on the seasons and weather to earn their income. So it is obvious that a large portion of Indian population needs to develop at a same pace with urban areas. The UPA government since last couple of years are trying hard to develop the agricultural sector by providing several assistances to the farmers. The Modi government has started many schemes and plans for the betterment of the farmers and their crops. It is not ended here; the government also offers several benefits such as subsidies under these schemes. Parshottam Rupala, the Minister of State for Agriculture and Farmers Welfare has declared in Lok Sabha that a bunch of subsidies under various schemes and markets will be provided to the farmers.
What is Subsidy to the farmers?
Subsidies are a type of financial assistance that is given by the state or central government to a specific industry or field for lowering the commodity price. In agricultural sector, because the cropping and harvesting are largely depend on the seasons and weather of the country, the price of the final products can fluctuate at any point of time. To prevent such irregularity government provides subsidies to the farmers.
Benefits of subsidies
- Subsidies are no doubt beneficial for the farmers. Subsidies help them to recover their losses they incur during the cropping and harvesting. Though there are several schemes have launched that offer those insurance but receiving subsidies under the schemes will help them cover their losses easily.
- Providing subsidies help the farmers to lowering down the price of the final products. If the price of the final goods increases it can lead to inflation and lowering the overall GDP value.
Subsidies under the markets
There are some of the markets under agricultural market where government has promised to provide an average of 35% to 50% subsidies to the farmers. The markets and the subsidies under those are as follows:
|1.||Rural Primary market||· 40% for the people who live in general area
· 55% for the people who live in tribal, hilly or backward areas
· Project Cost: 25 Lakhs
|2.||Whole sale Markets||· 25% for the people who live in general area
· 33.33% for the people who live in tribal, hilly or backward area
· Project Cost: 100 Cr
|3.||PHM Component||35% to 50% for post harvesting development|
|4.||Terminal Market Complex||· 25% to 40% under the Purchasing Power Parity mode
· Project Cost: 50 Cr to 150 Cr.
· Subsidy Division: Floor subsidy: 25% & Bidding Subsidy: 15%
Subsidies under the various schemes
In last couple of years, since the UPA government came into the rule, Indian agricultural sector has witnessed a lot of development. Not only the government has restarted the old schemes for the agricultural sector but also they have started whole new schemes for the betterment of the farmers and the agricultural sector. According to the ministry of Sate for Agriculture and Farmers Welfare, the subsidies will be given under few schemes. The schemes are as follows:
- National Food Security Mission: Under this mission or scheme, farmers will be subsides by a fixed amount of money to develop the machineries that are used in agricultural sector. The subsidies are given so that the farmers who are unable to maintain heavy equipment due to financial crisis can now have them.
- National Horticulture Mission: Under NHM, the government has planned to subsidise the farmers who are involved in horticultural production. The subsidies granted to the farmers under NHM will be offered for post harvesting management.
- Agricultural Marketing Infrastructure: AMI is a sub-scheme under another agricultural scheme that is for the Agricultural Marketing. The subsidy will be provided under this sub-scheme. The government will provide 25% to max 33.33% subsidies to the farmers to develop a storage system in their respective farms. Developed storage system will definitely help in growing the agricultural marketing.
- Rashtriya Krishi vikas Yojana: This one is the biggest subsidy program in agricultural sector. Under this scheme, the government will grant up to 100% financial assistance to the farmer depending on his project. The subsidies under this scheme will be provided by the state government. The state level sanctioning committee will grant the money once the verification of the project gets over by the experts.
- Bringing Green Revolution to the Eastern India Scheme: The scheme is designed for the East Indian states. Subsidies are given under the scheme in two ways. In the first type, 100% subsidy is provided for community asset. On the other the second type of subsidy is provided at 50% rate for the infrastructure, marketing, procurement and storage creation under the scheme.
Under all these specific schemes, the subsidies are being given to the farmers, the Minister said in Lok Sabha last month (July 2016) in a general event.