Although farmers need help, the Prime Minister's Farmers' Scheme provides Rs. What difference will it make in his life if he gets Rs.6000 i.e. Rs.17 per day?
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Before this year's budget, the question was what concrete steps the government would take to stem the decline in agriculture. The forthcoming elections and the ongoing agitation of farmers across the country had also increased the pressure on the government across the country. However, the interim budget presented by the in-charge Finance Minister Piyush Goyal on February 1, 2019, watered down these expectations.
To help the agriculture sector, the central government announced a new scheme, the Prime Minister's Farmers Honors Fund. The scheme will benefit about 12 crore small and medium farmers. The scheme is expected to provide Rs 6,000 per annum to the farmers. This scheme will be implemented retrospectively from 1st December 2018. This amount is Rs. Will be paid in three installments of 2000. The first installment will be paid on March 31, 2019.
Under this new scheme, the central government has announced a fund of Rs. 75,000 crore for small and medium farmers. This is four times the increase over the previous budget. In addition, for the welfare of farmers and to double their income, the government has promised a substantial increase in the minimum base rate (which protects farmers in case of crop fluctuations). This rate will be applicable for 22 crops. This is a double increase in foodgrain financing over 2017-18.
There is no denying that such schemes will help the farmers a little bit. But this does not solve the basic problem. This could put the National Democratic Front in a difficult position in this year's elections. Has the ruling party been able to alleviate the plight of the farmers during the last four and a half years of its rule? According to the Agriculture Ministry, 36,370 farmers committed suicide between 2014 and 2016. In the year 2018, farmers protested 13 times. The issue was exacerbated by falling prices of agricultural products in international and domestic markets. This has been exacerbated in the last two years as funding has also been cut.
Although farmers need help in purchasing agricultural inputs, Rs. How much difference will it make to pay Rs.6000 i.e. Rs.17 per day? With the cost of production steadily declining and erratic rains predicting future losses, how can farmers benefit from such a meager amount?
It is inevitable that the schemes of the Central Government will be compared with the schemes of the State Government. By this comparison, the Centre's plans are certainly inadequate. The subsidy announced by the Central Government is much less than the subsidy announced by the State Government. Under Telangana's Rayathu Bandhu Yojana, the state government pays Rs 8,000 per acre to each farmer in two installments. Under the Kalia model in Odisha, a grant of Rs. 10,000 is given to each family.
It is to be noted that the central policy makers have taken some things from the Rathu scheme of Telangana. Under this, farmers are given assistance according to how much land they have. It would be beneficial for policy makers to study the Kalia scheme in more depth. Considering the level of income, interest free loans for crops are given to landless farmers and needy farming families in Odisha. Under the Kisan Yojana, however, landless, leased farmers and migrant farmers have been completely ignored.
This proposed Prime Minister's Farmers' Scheme does not comment on the dreadful babugiri we have in terms of land registration. Historically, the framework of laws in India has led to land ownership disputes and huge losses to the agricultural sector. That is why it is challenging for the state government to find farmers owning less than two hectares of land for the Prime Minister's Farmers Scheme.
This department of agriculture is handled at the central level, at the state level and also in a shared manner. Therefore, it would not be appropriate to compare policies at the national and state levels. The Union Government formulates a policy that complements the State. State level issues need to be considered in order to implement this policy in an efficient manner. For example, Punjab has water scarcity, while Bihar does not have an agro-supply system, and there is a shortage of resources. Therefore, we do not use a single policy for the whole country. That is why there needs to be unity between the Center and the states.
A close study of the Prime Minister's Farmers' Plan raises the question of whether this is a government measure or a political compromise. BJP has failed in Madhya Pradesh, Chhattisgarh and Rajasthan. The debt waiver announced by the Opposition for the farmers is also said to be the reason for this defeat. So did the government take this step to change the attitude of the farmers? If so, what will be the future of these policies?
While presenting the budget, Piyush Goyal pointed out one thing. By providing financial assistance to farmers, the fiscal deficit will increase further in 2018-2019 and 2019-2020. The financial burden is likely to increase as the Reserve Bank will not cut rates in the near future. This is bound to affect the gross national product (GDP) in the coming financial year.
Putting aside the political maneuvers, it is clear that the government cannot consistently provide temporary relief in this area. By giving such money to the farmers of the country, the problems in the agricultural sector will not be solved. Above all, the government needs to have a definite and clear vision. It is important to understand exactly what is to be gained from it. The Central and State Governments should work together for these measures. Also, concrete and structural changes are needed for the welfare of agriculture. Today, 50% of the country's population is dependent on agriculture. Therefore, the focus of the administration should be on public welfare and not on political developments
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