Indian Government at all Ministry levels announces Welfare Schemes for a cross section of the society from time to time. These schemes could be either Central Sector, Centrally Sponsored, State specific or a joint collaboration between the Centre and the States. In this article, we have attempted to provide you an easy and single point access to information about several welfare schemes of Ministry of Agriculture and Farmer Welfare.
Formation and Promotion of Farmer Produce Organizations (FPOs)
Government has launched a new Central Sector Scheme titled “Formation and Promotion of Farmer Produce Organizations (FPOs)” to form and promote 10,000 new FPOs.
Initially there will be three implementing Agencies to form and promote FPOs, namely Small Farmers Agri-business Consortium (SFAC), National Cooperative Development Corporation (NCDC) and National Bank for Agriculture and Rural Development (NABARD).
States may also, if so desire, nominate their Implementing Agency in consultation with DAC&FW (Department of Agriculture Cooperation & Farmers Welfare).
DAC&FW will allocate Cluster/States to Implementing Agencies which in turn will form the Cluster-Based Business Organization in the States.
FPOs will be promoted under “One District One Product” cluster to promote specialization and better processing, marketing, branding & export by FPOs.
There will be a provision of Equity Grant for strengthening equity base of FPOs.
There will be a Credit Guarantee Fund of up to Rs. 1,000 crore in NABARD.
What is FPO
A Farmer Producer Organization (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen.
The concept of 'Farmer Producer Organizations, (FPO)' consists of collectivization of producers especially small and marginal farmers so as to form an effective alliance to collectively address many challenges of agriculture such as improved access to investment, technology, inputs, and markets. FPO is one type of PO where the members are farmers.
The FPOs are generally mobilized by promoting institutions/resource agencies (RAs). Small Farmers’ Agribusiness Consortium (SFAC) is providing support for the promotion of FPOs.
The resource agencies leverage the support available from governments and agencies like NABARD to promote and nurture FPOs, but attempting an assembly line for mass production of FPOs has not given the desired results.
RKVY-RAFTAAR
Ministry of Agriculture funding start-ups under the innovation and agripreneurship component of Rashtriya Krishi Vikas Yojana in 2020-21
In addition to 112 startups already funded for a sum of Rs. 11.85 Crore in First Phase in Current Financial Year, 234 startups in the agriculture and allied sectors will be funded for a sum of Rs. 24.85 Crore.
The funds will be given to the start-ups selected by different knowledge partners and agribusiness incubators in the area of agro-processing, food technology and value addition.
The funds will be provided under the Innovation and Agri-entrepreneurship Development Programme launched under the revamped Rashtriya Krishi Vikas Yojana (RKVY).
These start-ups were trained for two months at 29 agribusiness incubation centers (KPs & RABIs) spread across India
The government has identified five knowledge partners as centers of excellence and 24 RKVY-RAFTAAR agribusiness incubators (R-ABIs) from across the country. DAC&FW has selected 5 Knowledge Partners (KPs) as Centers of Excellence.
- National Institute of Agricultural Extension Management (MANAGE), Hyderabad,
- National Institute of Agricultural Marketing(NIAM) Jaipur,
- Indian Agricultural Research Institute (IARI) Pusa, New Delhi,
- University of Agriculture Science , Dharwad, Karnataka and
- Assam Agriculture University, Jorhat, Assam
The following are the components of this scheme:
- Agripreneurship Orientation – 2 months duration with a monthly stipend of Rs. 10,000/- per month. Mentorship is provided on financial, technical, IP issues etc.
- Seed Stage Funding of R-ABI Incubatees – Funding upto Rs. 25 lakhs (85% grant & 15% contribution from the incubatee).
- Idea/Pre-Seed Stage Funding of Agripreneurs – Funding up to Rs. 5 lakhs (90% grant and 10% contribution from the incubatee).
About RKVY Scheme
RKVY scheme was initiated in 2007 as an umbrella scheme for ensuring holistic development of agriculture and allied sectors.
The scheme incentivizes States to increase public investment in Agriculture & allied sectors.
States initiate the process of decentralized planning for agriculture and allied sectors through preparation of District Agriculture Plans (DAPs) and State Agriculture Plan (SAP) based on agro-climatic conditions, availability of appropriate technology and natural resources to ensure accommodation of local needs, cropping pattern, priorities etc.
The Cabinet has approved (as on 1st November 2017) for the continuation of the ongoing Centrally Sponsored Scheme – Rashtriya Krishi Vikas Yojana (RKVY) as Rashtriya Krishi Vikas Yojana- Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY-RAFTAAR).
Fund Sharing in RKVY-RAFTAAR will continue to be in the ratio of 60: 40 for states except in the case of northeastern and hilly states where the sharing pattern is 90:10. For UTs the grant is 100% as Central share
Paramparagat Krishi Vikas Yojana (PKVY)
The Paramparagat Krishi Vikas Yojana (PKVY) – traditional farming improvement programme was launched in 2015.
It is an extended component of Soil Health Management (SHM) under the Centrally Sponsored Scheme National Mission on Sustainable Agriculture (NMSA).
PKVY aims at supporting and promoting organic farming, reduction in dependence on fertilizers and agricultural chemicals, in turn, resulting in improvement of the soil health while increasing the yields
Funding pattern under the scheme is in the ratio of 60:40. In case of North Eastern and the Himalayan States, Central Assistance is provided in the ratio of 90:10 for UT, the assistance is 100%.
The objective is to produce agricultural products free from chemicals and pesticides residues by adopting eco- friendly, low- cost technologies
PKVY is being implemented by the Organic Farming cell of the Integrated Nutrient Management (Division) of Department of Agriculture; Cooperation and Farmers Welfare (DAC&FW)
Under PKVY Organic farming is promoted through the adoption of the organic village by cluster approach and PSG Certification.
Fifty or more farmers will form a cluster having 50-acre land to take up the organic farming under the scheme.
Scheme will be provided INR 20,000 per acre to Every farmer by the government spread over three years’ time.
Government’s plan to form around 10,000 clusters in three years and cover an area of 5 Lakh hectares.
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
The Government has approved a new umbrella scheme “Pradhan Mantri Annadata Aay Sanrakshan Abhiyan” (PM-AASHA) which will provide Minimum Support Price (MSP) assurance to farmers.
The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018.
Thus to address the gaps in the MSP system and give better returns to farmers, PM-AASHA is an important step.
The three components that are part of AASHA are:-
- Price Support Scheme (PSS)
- Price Deficiency Payment Scheme (PDPS)
- Pilot of Private Procurement and Stockiest Scheme (PPSS)
Price Support Scheme (PSS)
- Under the PSS, Central nodal agencies will procure pulses, oilseeds and copra with proactive role of state governments.
- The Food corporation of India (FCI) and the National Agricultural Cooperative Marketing Federation of India (NAFED) will help implement the scheme.
- The procurement expenditure and losses due to procurement will be borne by Central Government as per norms.
- The government will procure 25% of the marketable surplus of farmers for eligible crops.
- The Centre has made a provision of about Rs 16,000 crores to be provided as bank guarantee for the agencies to procure from farmers.
Price Deficiency Payment Scheme (PDPS)
- Under the PDPS, the state will provide the difference between the prices prevailing in mandis and the MSP.
- This scheme is modelled on the Bhawantar Bhugtan Yojana that has been implemented by the Madhya Pradesh state government as well as Bhavantar Bharpai Yojana of Haryana Government.
- All oil-seeds are to be covered under PDPS. There will be no physical procurement of crops.
Pilot of Private Procurement and Stockiest Scheme (PPSS)
- Cabinet has decided that for oilseeds, states have the option to roll out Private Procurement Stockist Scheme (PPSS) on pilot basis in selected district/APMC(s) of district involving the participation of private stockiest.
- The pilots district/selected APMC(s) of district will cover one or more crop of oilseeds for which MSP is notified.
- Since this is akin to PSS, in that in involves physical procurement of the notified commodity, it shall substitute PSS/PDPS in the pilot districts.
- The selected private agency shall procure the commodity at MSP in the notified markets during the notified period from the registered farmers in consonance with the PPSS Guidelines.
- But whenever the prices in the market fall below the notified MSP maximum service charges up to 15% of the notified MSP will be payable.
