In a groundbreaking move, the Modi government has significantly bolstered financial support for farmers, surpassing the 20 lakh crore mark in agricultural loans during this fiscal year, according to the Economic Research Institute Global Trade Research Initiative (GTRI). The institute emphasizes the need to initiate ‘Green Revolution 2.0’ to promote the cultivation of crops such as pulses, oilseeds, and vegetables, suggesting that the government could guarantee Minimum Support Prices (MSP) for these products.
Rapid Growth in Agricultural Loans Under Modi’s Leadership
Over the past decade under the leadership of Prime Minister Narendra Modi, the agricultural sector has witnessed a rapid surge in bank loans. During the current financial year (2023-24) from April to January, banks disbursed loans amounting to ₹20.39 crores. In comparison, the entire duration of 2013-14 saw loans worth 7.3 billion rupees extended to farmers.
A senior official from the Ministry of Agriculture stated, “The government had set a target of 20 trillion rupees for agricultural loans in the budget for the financial year 2023-24.” While banks have already achieved this target, there is an expectation to exceed ₹22 trillion by the end of the current fiscal year. The Agriculture Ministry plans to provide farmers with agricultural loans up to ₹3 lakh at a reduced interest rate of 7% per annum, thus allocating ₹3 trillion for short-term agricultural loans.
The Need for Green Revolution 2.0
The Global Trade Research Initiative (GTRI) highlighted the importance of initiating ‘Green Revolution 2.0’ to promote the cultivation of water-efficient crops like pulses, oilseeds, and vegetables. The institute suggested that the government could guarantee MSP for these crops. Additionally, GTRI recommended discouraging the cultivation of water-intensive crops in certain states.
Challenges and Solutions: Free Electricity for Agriculture Sector
GTRI proposed halting the provision of free electricity for agriculture in some states where farmers are opposing mandatory MSP guarantees and agricultural loan waivers. The majority of MSP purchases, approximately 90-95%, involve rice and wheat. The GTRI’s recommendations underscore the importance of aligning agricultural policies to ensure sustainable practices and the well-being of farmers.
As the government continues to address challenges and implement new measures, the surge in agricultural loans reflects a commitment to supporting farmers and enhancing agricultural productivity. The ‘Green Revolution 2.0’ initiative, if implemented, could usher in a new era of sustainable farming practices in India.