Climate Change: How are these initiatives and schemes supporting farmers in climate change? Know the information

Climate Change: The objective of AIF is to provide farmers 75-80% consumer price of their products. Improve post-harvest management and reduce dependence on middlemen. Promote investment in assets such as organic inputs, seed processing and farm automation.

Current agricultural loan arrangements are designed to meet the challenges of climate friendly farming. These schemes provide financial assistance to farmers to deal with the effects of climate change and encourage them to adopt sustainable agricultural practices.

Interest subsidy for farmers affected by natural disasters

The Modified Interest Subsidy Scheme (MISS) under the Kisan Credit Card (KCC) Scheme provides short-term agricultural loans to farmers at concessional interest rates. Under this scheme:

Farmers get loans at an interest rate of 7% per annum.

A Prompt Repayment Incentive (PRI) of 3% is given on timely repayment of loan, which reduces the effective interest rate to 4%.

Interest subsidy is provided in the first year on restructured loans in case of natural disasters.

This subsidy can be extended up to a maximum of 5 years in case of severe natural disasters.

Agricultural Credit Support through Agriculture Infrastructure Fund (AIF)

Under AIF, medium and long term loans are provided to farmers to develop structures like storage and logistics at the farm level. Under this scheme:

Loans are provided at a maximum interest rate of 9%.

Annual interest subsidy of 3% is given on loans up to Rs 2 crore.

This scheme encourages the use of climate friendly agricultural equipment, solar power plants and organic manure production.

Other initiatives for climate resilient agriculture

Climate resilient crop and animal husbandry is being promoted under the National Innovation Programme (NICRA).

Agri-fintech platforms such as ITC MAARS are helping farmers adopt climate-smart agricultural practices by providing KCC and input loans.

Development of climate financial products

The government has promoted climate financial products that promote investment in climate resilient infrastructure and technologies. Examples:

NABARD provides funds to combat climate change in agriculture through the Green Climate Fund (GCF) and the National Adaptation Fund (NAFCC).

Promotion of renewable energy in agriculture

The government has launched the PM-KUSUM scheme, under which:

Farmers are given financial assistance to install solar irrigation systems.

Grid-connected solar power generation schemes are promoted.

Central subsidy ranging from 30% to 50% is provided for installation of standalone solar pumps.

NABARD Initiatives for Climate Resilience

Through the Watershed Development Programme, NABARD is:

Increasing water availability in rain-fed areas.

Promoting crop diversification and high-value crops.

Providing financial assistance to tribal families for horticulture, animal husbandry and micro enterprises.

Voluntary Carbon Market (VCM) in Agriculture

Currently 11 agriculture projects are registered on the Veera VCS platform, which promotes sustainable agricultural practices.

Digital Public Infrastructure (DPI) and Agriculture

The government is developing a data-based decision support system (DSS) through AgriStack.

This system helps farmers to make climate change-friendly decisions.

This will promote services like digital agricultural tools, precision agriculture and real-time advisories.

Easy access to agricultural credit

The Kisan Loan Portal connects 1.89 lakh bank branches, giving farmers easy access to financial resources.

This portal promotes organic inputs, seed processing and farm automation.

NABARD is working on natural farming and farm mechanization in collaboration with ICAR, KVKs.

The use of GIS, remote sensing and AI is helping farmers to make better decisions.

Use of Nano Urea and Nano DAP

The government is promoting the use of nano fertilizers.

Nano fertilizers are being made available at PM-KSK centers.

A national campaign on balanced fertilizer use has been launched by ICAR.

Drones have been made available to 15,000 women self-help groups under the ‘Namo Drone Didi’ scheme, which has increased the spraying of nano fertilizers.

The Ministry of Agriculture has launched a campaign to promote nano urea and nano DAP in 100 districts.

Role of Agriculture Infrastructure Fund (AIF)

Objective of AIF:

To ensure farmers get 75-80% of consumer price of their produce.

Improve post-harvest management and reduce dependence on middlemen.

To promote investment in assets like organic inputs, seed processing and farm automation.

Conclusion

The government is moving agriculture from an input-based system to a knowledge-based system.

Kisan loan schemes are playing a vital role in promoting climate resilient agriculture.

NABARD, ICAR, and other institutions are striving to empower sustainable agriculture.

The agriculture sector is being made more climate change ready by effectively using digital technologies and financial products.