Farmers who repay loans to get ₹50,000 as incentive

Ajit Pawar said that in a meeting with the prime minister Narendra Modi, they had sought permission to implement the Prime Minister’s Crop Insurance scheme as per the Beed model

Mumbai In a budget speech that laid emphasis on agriculture, deputy chief minister Ajit Pawar announced several sops and measures for farmers, including an incentive of ₹50,000 for two million farmers, who repay their crop loans regularly.

Pawar indicated that the state government wanted the Centre to modify the terms of its crop insurance scheme-Pradhan Mantri Fasal Bima Yojana (PMFBY) and replace it with a model that was implemented in Beed district (Anshuman Poyrekar/HT PHOTO)

He further announced that the state government has decided to waive ₹964.15 crore loans of 275 land development banks taken by 34,788 farmers and said that ₹10,000 crore will be invested in improving agriculture produce market committee system in two years. A district-wise cluster will also be formed for exporting agricultural commodities.

“In my earlier budget speech, I had announced an incentive of ₹50,000 to farmers who repay their crop loans regularly, but it was not distributed due to financial constraints. However, today I feel happy that the promise made to the farmers is being fulfilled. I thank and appreciate the farmers who regularly repay their loans. This grant will benefit around 20 lakh ryots. An expenditure of ₹10,000 crore is expected for this in the year 2022-23,” said Pawar in his budget speech.

An amount of ₹275.40 crore will be utilised to pay the dues of the land development bank employees. The buildings of these land development banks will be used for government schemes in future, he added.

Pawar indicated that the state government wanted the Centre to modify the terms of its crop insurance scheme-Pradhan Mantri Fasal Bima Yojana (PMFBY) and replace it with a model that was implemented in Beed district.

“Gujarat and some other states have already opted out of the Prime Minister’s Crop Insurance scheme. The Maharashtra Vikas Aghadi (MVA) has requested the prime minister for modifications. If it is not accepted, then I would like to make it clear that we will consider other options to compensate the farmers,” he added.

Later, Pawar said that in a meeting with the prime minister Narendra Modi, they had sought permission to implement the scheme as per the Beed model. Though Modi had promised to look into it, the Centre was yet to respond. Pawar added that in case of some crops like chikoo, which is cultivated at Dahanu, premiums were as high as ₹80,000 for a cover of ₹1 lakh. “Other states (which have opted out) are eager to ensure benefits to their farmers,” he explained.

Under the Beed formula, which is in place from 2020, the insurance companies have to provide a cover of 110% of the premiums collected, with the state government paying the amount over and above this. If the compensation to be paid was less than the premium collected, the company will keep 20% of the amount and reimburse the rest to the state government.

“Insurance companies were making good profits in the conventional crop insurance model. Hence, we are capping the quantum of profits and losses in it,” said an official from the state finance department. The farmers have to pay 20 per cent of the premium amount, with the state and union governments paying 40 per cent each in the PMFBY.

Meanwhile, in his budget speech, Pawar said that the Balasaheb Thackeray Agricultural Research Centre will be established at Basmat, Dist. Hingoli. The Centre, which is named after the late Shiv Sena chief, will conduct research for increasing productivity of the turmeric crop. The budget has earmarked ₹100 crore for this.

“In last year’s budget, I had announced ₹2,000 crore for strengthening the 306 agricultural produce market committees (APMC). Full interest on the loan taken by the market committees for infrastructure will be repaid by the government. It is expected to attract an investment of ₹10,000 crore in the next two years,” said Pawar, adding that ₹1,000 crore will be provided in the next three years to increase productivity of cotton and soybean farmers.

Since 2022 has been declared as the year in honour of women farmers and agricultural workers, a reservation of 30% for women farmers in agriculture schemes will be enhanced to 50%. Also 3% of funds allocated for agricultural schemes will be made available to serving and retired soldiers

The horticulture policy will now cover banana, dragon fruit, avocado, grape and other fruits and important spice crops with a target to cultivate orchards on an area of 1 lakh hectare this year.

Pawar said that the number of under construction irrigation projects was 270 and their completion would result in 26,38,771 hectares in additional irrigation capacity and 317 TMC of water storage capacity. The MVA government has emphasised the timely completion of irrigation projects in the last two years and the results are beginning to show, he added, stating that water storage has been created in 28 projects in the last two years and 104 projects are expected to be completed in the next two years.