Agriculture

National Schemes for Farmers

Agricultural Credit

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<div id="MiddleColumn_internal">
<h3>What to Do?</h3>
<ul>
<li>To save themselves from the clutches of money lenders, farmers can avail loan facility from banks.</li>
<li>Loan facility is available through a large network of Commercial Banks, Regional Rural Banks and Cooperative Credit Institutions in the country to fulfill the crop loan and term loan needs of the farmers.</li>
<li>Ensure timely repayment of bank loan.</li>
<li>Proper record of loan should be maintained by farmer.</li>
<li>Utilize the bank loan for actual purpose for which bank loan is taken.</li>
</ul>
<h3>What Can You Get?</h3>
<h4>Credit facility to farmers</h4>
<table class="grid listing"><colgroup><col width="50"> <col width="190"> <col width="448"> </colgroup>
<tbody>
<tr style="text-align: center;">
<td height="20"><strong>S.NO</strong></td>
<td><strong>Credit Facility</strong></td>
<td><strong>Quantum of Assistance</strong></td>
</tr>
<tr>
<td class="xl67" height="120">1</td>
<td class="xl68" width="190">Interest Assistance<br><br><br><br>Collateral / security-free loan</td>
<td class="xl68" width="448">Crop loan upto Rs.3 lakhs at 7% rate of interest. This interest rate becomes 4% due to 3% interest subvention incentives provided to those farmers who repay crop loan on time<br><br>No need of collateral security for farm loan up to Rs 1.6 lakh</td>
</tr>
<tr>
<td class="xl67" height="100">2</td>
<td class="xl69">Kisan Credit Card</td>
<td class="xl66" width="448">Farmers can avail crop loan through Kisan Credit Card. Loan /credit limit is fixed on the basis of crop sown and area under cultivation. Kisan Credit Cards are valid for 3-5 years. Farmers are also provided risk coverage in the event of accidental death/ disability. Crop coverage loans are covered under the <a href="../../../../agriculture/agri-insurance/crop-insurance">Crop Insurance</a> Scheme.</td>
</tr>
<tr>
<td class="xl67" height="61">3</td>
<td class="xl69">Investment Loan</td>
<td class="xl68" width="448">Loan facility to the farmers is available for investment purposes in the areas viz. Irrigation, Agricultural Mechanization, Land Development, Plantation, Horticulture and Post-Harvest Management</td>
</tr>
</tbody>
</table>
<h4>Price Policy for Agricultural Commodities</h4>
<p>Price Support Scheme (PSS) for Procurement of Oilseeds, Pulses &amp; Cotton under <a href="../../../../agriculture/market-information/minimum-support-price">Minimum Support Price</a> (MSP)</p>
<table class="grid listing">
<tbody>
<tr>
<td><strong>Name of the Scheme</strong></td>
<td><strong>Objectives</strong></td>
<td><strong>Beneficiary</strong></td>
<td><strong>Implementing Agency</strong></td>
<td><strong>Commodities covered<br>under Scheme</strong></td>
<td><strong>Likely Benefit to the growers</strong></td>
<td><strong>Pattern of Assistance</strong></td>
</tr>
<tr>
<td>Price Support<br>Scheme (PSS)</td>
<td>
<div>To provide</div>
<div>remunerative/</div>
<div>guaranteed</div>
<div>prices to the</div>
<div>oilseeds,</div>
<div>cereal, copra,</div>
<div>sugarcane</div>
<div>and raw jute.</div>
<div>Pulses &amp; cotton growers in case of price fall below the</div>
<div>Minimum</div>
<div>Support</div>
<div>Price (MSP)</div>
<div>declared by</div>
<div>Government</div>
<div>of India in</div>
<div>both crop</div>
<div>seasons i.e.</div>
<div>Rabi &amp; Kharif</div>
<div>every year.</div>
</td>
<td>
<div>All the</div>
<div>cereals</div>
<div>oilseeds,</div>
<div>pulses &amp;</div>
<div>cotton,</div>
<div>copra,</div>
<div>sugar-</div>
<div>cane and</div>
<div>raw jute</div>
<div>growers</div>
<div>of the</div>
<div>country.</div>
</td>
<td>
<p>(i) Central Agencies<br>NAFED &amp; Small<br>Farmers Agri-business<br>Consortium (SFAC).</p>
<p><br>(ii) State Agencies<br>State Cooperative<br>Marketing/Commodities<br>Federations and any<br>other organization<br>appointed by the Central Agencies at State Level.</p>
<p><br>(iii) Primary Agencies &ndash;<br>Cooperative Marketing<br>Societies, Farmer<br>Producer Organizations<br>(FPO), Farmer Producer<br>Companies (FPC) at<br>village level</p>
</td>
<td>
<div>CACP recom-</div>
<div>mends MSPs of 23 commodities,</div>
<div>which comprise</div>
<div>7 cereals (paddy, wheat,&nbsp; maize,</div>
<div>sorghum, pearl</div>
<div>millet, barley</div>
<div>and ragi), 5</div>
<div>pulses (gram, tur, moong, urad, lentil), 7 Oilseeds</div>
<div>(groundnut,</div>
<div>rapeseed-mustard, soyabean,</div>
<div>seasmum, sunflower, safflower,</div>
<div>nigerseed), and</div>
<div>4 commercial</div>
<div>crops (copra,</div>
<div>sugarcane,</div>
<div>cotton and raw</div>
<div>jute).</div>
</td>
<td>
<div>Through</div>
<div>Price sup-</div>
<div>port Scheme</div>
<div>(PSS) operations, farmers are assured to get</div>
<div>minimum</div>
<div>guaranteed</div>
<div>price in case</div>
<div>the market</div>
<div>price of that</div>
<div>particular</div>
<div>commodity</div>
<div>falls below</div>
<div>the MSP</div>
</td>
<td>i)Farmers&ndash; MSP for the specific commodity is fully paid to the farmers, in case the prices rule below the MSP.
<div>(ii) Central Agencies &ndash;&nbsp;Losses incurred to the&nbsp;central agencies are fully reimbursed by the Government of India. Besides, service charges @ 2.5%</div>
<div>on the procurement cost for Copra and 1.5% for oilseeds, pulses &amp; cotton</div>
<div>are also paid to the central agencies.</div>
<div>(iii) State /Primary Agencies &ndash; The difference&nbsp;between MSP and Ruling Price along with all expenses up to the storage points are paid to the State agencies by Central agencies/Government of India. Besides, 1% service charge at the ex-godown cost is also paid.</div>
</td>
</tr>
</tbody>
</table>
<p><em><strong>Whom to Contact</strong></em></p>
<ul>
<li>Joint Secretary (Cooperation), Department of Agriculture &amp; Cooperation, Krishi Bhawan, New Delhi.</li>
<li>Regional Offices of NAFED &amp; SFAC located in State Capitals.</li>
<li>District Level Offices of Cooperative Marketing/Commodities Federations.</li>
<li>Marketing Cooperative Societies at Tehsil Level and FPOs /FPCs at Block Level.</li>
</ul>
<h4>Pradhan Manthri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)</h4>
<ul>
<li>The Union Cabinet approved new Umbrella Scheme 'Pradhan Mantri Annadata Aay Sanrakshan Abhiyan: PM-AASHA on 12th Sept, 2018.</li>
<li>The Scheme is aimed at ensuring remunerative prices to farmers for their produce as announced in the Union Budget for 2018.</li>
<li>This step is a major boost to the pro-farmers initiative of the Government.</li>
<li>The new Umbrella Scheme is comprised of Price Support Scheme, Price Deficiency Payment Scheme and Pilot of Private Procurement and Stockist Scheme.</li>
<li>This step aims at protecting the farmers&rsquo; income which is expected to go a long way towards the welfare of farmers.</li>
</ul>
<p><strong>Source:</strong><em> <a class="ext-link-icon external-link" title="External website that opens in new window" href="https://agriwelfare.gov.in/" target="_blank" rel="noopener">Department of Agriculture, Cooperation and Farmers Welfare</a></em></p>
</div>

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