Economic Survey 2023-24: Big Boost for Farmers
Presented by Union Finance Minister Nirmala Sitharaman
The Economic Survey 2023-24 was tabled in Parliament by Union Finance Minister Nirmala Sitharaman. The survey highlights a significant increase in agricultural credit, which grew from Rs 13.3 lakh crore in FY21 to Rs 20.7 lakh crore in FY24.
Kisan Credit Card Scheme
The Kisan Credit Card (KCC) scheme played a crucial role in providing timely and hassle-free credit to farmers, with over 7.4 crore operative KCC accounts by the end of 2023.
Impact of Weather on Agriculture
The survey noted that erratic weather patterns and uneven monsoon distribution affected the Gross Value Added (GVA) in the agriculture sector, leading to a marginal decline in foodgrain output by 0.3% in FY24.
Government Initiatives
Several government initiatives were highlighted, including YES-Tech Manual, WINDS portal, and the AIDE/Sahayak app for crop insurance. These initiatives aim to assess crop damage using advanced technologies and make insurance more accessible to farmers.
Food Inflation
Food inflation, based on the Consumer Food Price Index (CFPI), increased from 3.8% in FY22 to 7.5% in FY24 due to extreme weather events and lower reservoir levels.
Support for Farmers
The government provides subsidies for water, electricity, and fertilizers, offers a minimum support price (MSP) for 23 commodities, and provides monthly cash support through the PM-KISAN scheme. The survey suggests that re-orienting existing and new policies could better serve farmers and boost the agricultural sector.
Doubts Revealed
Nirmala Sitharaman -: Nirmala Sitharaman is the Finance Minister of India. She is responsible for managing the country’s finances, including presenting the budget and economic surveys.
Economic Survey -: The Economic Survey is a report presented by the government that reviews the country’s economic progress over the past year and gives an outlook for the future.
Agricultural Credit -: Agricultural credit is money that farmers can borrow to help them grow crops and take care of their farms. It helps them buy seeds, fertilizers, and other necessary things.
Rs 13.3 lakh crore -: Rs 13.3 lakh crore is a way to say 13.3 trillion rupees. A lakh is 100,000 and a crore is 10 million. So, 13.3 lakh crore is a very large amount of money.
FY21 -: FY21 stands for Fiscal Year 2021, which is the financial year from April 2020 to March 2021.
Kisan Credit Card -: The Kisan Credit Card is a scheme by the Indian government that provides farmers with easy access to credit. It helps them get loans at lower interest rates.
Food Inflation -: Food inflation means the prices of food items are increasing. This can make it more expensive for people to buy food.
Erratic Weather -: Erratic weather means unpredictable or unusual weather patterns, like too much rain or not enough rain, which can affect farming.
Crop Insurance -: Crop insurance is a type of insurance that helps farmers if their crops are damaged by bad weather or other problems. It helps them recover financially.
Technological Advancements -: Technological advancements are new and improved technologies that can help farmers work more efficiently and increase their crop yields.
Re-orientation of Policies -: Re-orientation of policies means changing or adjusting government rules and plans to make them better suited for current needs and challenges.
