12% Interest on Delayed Farmer Payments
Delivering a stern warning to state governments and agencies, the minister declared that withholding farmers’ dues would attract a 12 percent interest penalty. He made it clear that the Centre would not tolerate the practice of delaying payments or parking funds for interest gains.
Chouhan said the Union government is exploring mechanisms to transfer its share of scheme funds directly into farmers’ bank accounts if states delay payments. “Farmers’ money cannot be blocked. Every rupee meant for them must reach on time,” he asserted.
MSP Procurement Within One Month
Calling the current three-month procurement cycle under the Minimum Support Price (MSP) system impractical, the minister urged states to complete procurement within a maximum of one month. He said farmers cannot afford to wait for extended periods after harvest.
Faster procurement would ensure immediate and fair remuneration, while preventing intermediaries from exploiting price gaps. The MSP policy details are available on the official Ministry portal at https://agricoop.nic.in.
Direct Fertiliser Subsidy to Farmers
The Centre currently spends over ₹2 lakh crore annually on fertiliser subsidies, enabling farmers to purchase urea at highly subsidized rates. Chouhan suggested examining whether this subsidy could be directly transferred to farmers through Direct Benefit Transfer (DBT).
Such a move would empower farmers to choose the fertilisers they require while ensuring that the actual cultivator benefits from government support.
Stronger Role for Krishi Vigyan Kendras
Chouhan announced that Krishi Vigyan Kendras (KVKs) would be strengthened as district-level agricultural reform command centres. These institutions will act as bridges between laboratory research and field-level implementation.
Scientists will coordinate closely with state departments to promote new crop varieties, integrated farming models and advanced pest management practices. More details about KVKs can be accessed at the ICAR website https://icar.org.in.
KCC Loans: 4% Interest, Zero Delay
Highlighting the success of the Kisan Credit Card (KCC) scheme, the minister noted that nearly 75 percent of small farmers benefit from affordable credit at an effective interest rate of 4 percent. However, he warned banks against procedural delays.
He directed financial institutions to ensure timely disbursal of loans without unnecessary paperwork, so farmers are not pushed toward private moneylenders.
Simplifying Pesticide Licensing
The minister acknowledged that the current pesticide licensing framework is cumbersome and often delays quality products from reaching the market. He promised reforms to reduce layers of approval, introduce clear timelines and enhance transparency.
This, he said, would help eliminate counterfeit products while ensuring farmers have timely access to safe and effective inputs.
Viksit Krishi Sankalp Abhiyan from April
Chouhan announced that the Viksit Krishi Sankalp Abhiyan would resume in April ahead of the kharif season. Under this campaign, teams of agricultural scientists will directly visit villages to share research-based solutions with farmers.
The initiative aims to deliver scientific advice, improved seed varieties and sustainable farming technologies directly to the field level.
Farmers at the Centre of Reform
In a symbolic gesture, farmers were seated prominently on the dais during the inauguration ceremony. Seven progressive farmers were also honoured with the IARI Krishi Adhyeta Award, reinforcing the message of “Farmers First.”
Describing the Pusa Krishi Vigyan Mela as a national “Kumbh” of farmers, Chouhan directed IARI to expand the event further in the coming years. He emphasized that a developed agricultural system is essential for achieving the vision of Viksit Krishi and Atmanirbhar Bharat.
