Challenges of the Micro Irrigation Fund
- Power availability: Energy is the primary component of an irrigation system, and for large-scale projects, only electricity is a practical source that, despite existing welfare programs, is still out of the price range of every farmer.
- Financial Challenges: Farmers frequently struggle to obtain the appropriate financial services help. According to reports, a reduced adoption rate for micro-irrigation was caused by budget cuts made between 2013 and 2016.
- Drip Method of Irrigation (DMI) adoption is occurring at a slower rate: The potential for drip irrigation in India is thought to total 27 million hectares, according to the Task Force on Micro-Irrigation in India (2004). However, only 4% of the total irrigated land and 15% of its potential is covered by drip irrigation (2016-17). Additionally, DMI usage is only widespread in a select few States.
- Failure to act responsibly by state governments: The scheme only runs for a few months out of the year in the majority of Indian states (with Gujarat and Tamil Nadu being the main exceptions). Although funds are available, program applications are only handled at the end of a fiscal year. This is done often to meet pre-set targets in what is referred to as the “March rush.” Only a few farmers can apply because of the short window.
- Reimbursement of Subsidies Delayed: The money for building drip irrigation systems is distributed to vendors only after careful consideration, unlike other subsidies that are given straight to recipients. The inspection and testing of the installed system for transferring subsidies don’t have a set schedule.
Micro Irrigation Fund
India is an agricultural nation, and agriculture is the primary source of income for the vast majority of its citizens. A valuable resource for agriculture’s expansion, improvement, and general effectiveness is water. Micro-irrigation technology has been installed in the rain-fed areas to save water, reduce the use of fertilizers, labor costs, and other input costs, and improve the fertility of the soil in order to address the problem of water scarcity and utilize the available water resources in a more efficient manner. A plan on micro-irrigation was put up by the Department of Agriculture Cooperation & Farmers Welfare (DAC&FW) to enhance the drip and sprinkler irrigation technique. It later became the National Mission on Micro-irrigation Scheme, which was a key part of the National Mission for Sustainable Agriculture (NMSA), and was introduced in the 2010–2011 academic year. To attain the goal of “per drop more crop,” NABARD established the Micro Irrigation Fund with a corpus of Rs. 5000 crores. The nodal ministry of Agriculture and Farmers Welfare (MoA&FW), Government of India, oversees the Micro Irrigation Fund (MIF). In order to encourage micro-irrigation across the nation, it seeks to offer loans to states at a favorable and cheaper rate of interest. Proper micro irrigation system implementation is crucial for increasing productivity. The dedicated micro-irrigation fund would assist in adding to the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) program’s efforts to micro-irrigate roughly 10 lakh hectares. The fund will make it easier for States to raise money for their initiatives, such as additional (top-up) subsidies for the Pradhan Mantri Krishi Sinchayee Yojana-Per Drop More Crop (PDMC) program, in order to meet the program’s annual target of roughly 2 million hectares per year for the remainder of the 14th Finance Commission’s term.
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