Additional budgetary support needs to be given to the Agriculture Ministry to meet its requirements under the interest subvention scheme, as there is likely to be a shortfall of up to ₹26,000 crore due to the huge backlog of dues, the Standing Committee on Agriculture has said in its report.

The committee, headed by Hukm Deo Narayan Yadav, has also proposed that the entire Rashtriya Krishi Vikas Yojana (RKVY) scheme be reviewed and the constraints in its implementation be addressed in consultation with the States. The report was submitted to the Lok Sabha on Friday.

Giving its observations on the interest subvention scheme, under which the government subsidises a part of the interest charged by banks on farm loans, the Committee noted that the budgetary allocation of ₹15,000 crore was far below the requirement.

Mounting dues

Taking into account the estimated cumulative liabilities of ₹41,748 crore, including the carry-over balance liability of ₹23,472 crore and estimated claim amount of ₹18,276 crore for 2016-17, the Committee proposed that additional budgetary support be provided to the department.

It also recommended that feasible measures/options suggested by the Sarangi Committee for improving targeted lending to small and marginal farmers be considered and implemented.

The committee expressed its concern at the drastic reduction of funds for RKVY during the 12th Plan and that only 12 State Agriculture Plans and 247 District Agriculture Plans (out of 652 districts) have been prepared.

It proposed that the Agriculture Department periodically circulate national priority areas and proposed special sub-schemes under RKVY to States/UTs to prepare and submit their annual proposals and action plans in time.

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