The scheme will benefit 12 crore farmer families and will cost the public exchequer Rs 75,000 crore
Finance Minister Piyush Goyal announced a structured income support scheme to cater to the needs of farmers in the interim budget presented in Parliament on February 1.
Goyal proposed the rolling out of the Pradhan Mantri Samman Nidhi scheme which gives direct income support of Rs 6,000 per year to small and medium farmers who hold less than two hectares of land.
He said the scheme will be rolled out starting December 1, 2018 and that the amount will be transferred directly into the banks of beneficiary farmers in three installments of Rs 2,000 each.
The scheme will benefit 12 crore farmer families and will cost the public exchequer a whopping Rs 75,000 crore.
Following are the highlights of the additional schemes announced for the agricultural sector:
# Increased allocation for Rashtriya Gokul Mission to Rs 750 crore.
# Government will set up Rashtriya Kamdhenu Aayog for betterment of cows.
# Those farmers who engage in animal husbandry and horticulture and avail loans from the Kisan Credit Scheme will be allowed interest subvention of 2 percent. In addition, if they repay their loans on time, they can avail 3 percent interest subvention.# All farmers affected by a natural disaster will be allowed interest subvention of 2 percent. On timely repayment of loans, they get an interest subvention of 3 percent.