GS III - 2. Agriculture

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GS III - 2.

Agriculture
13500 Words
● https://www.thehindu.com/opinion/op-ed/seeding-a-data-revolution-in-indian-agriculture/article36886444.ece
● https://www.thehindu.com/opinion/op-ed/sowing-better-to-eat-better/article36995739.ece
● https://www.thehindu.com/opinion/op-ed/improving-livestock-breeding/article37060492.ece
● https://www.thehindu.com/opinion/lead/a-white-touch-to-a-refreshed-green-revolution/article37813445.ece

○ ✅ 4 YEARS OF GOODS &…: GS III - Economics Part II (June 2021)


○ ✅ MODEL TENANCY ACT, 2021: GS III - Economics Part IV (June 2021)
○ ✅ IBC: GS III - Economics Part II (June 2020) & (July 2021)
○ ✅ ASSET RECONSTRUCTION COMPANY (ARC): GS III - Economics Part II (Feb & July 2021)
○ ✅ NATIONAL MONETISATION PIPELINE: GS III - Economics Part II (Aug 2021)
○ ✅ PRADHAN MANTRI JAN DHAN YOJANA…: GS III - Economics Part II (Aug 2021)
○ ✅ PRIVATE SECTOR PARTICIPATION IN RAILWAYS: GS III - Economics Part IV (July 2020 & August 2021)
● Agriculture — Imp. CA for Mains 2021
○ ✅ PRADHAN MANTRI KISAN SAMMAN NIDHI… (Jan 2021)
○ ✅ GM - CROPS (Feb 2021)

○ ✅ 4 YEARS OF GOODS &…: GS III - Economics Part II (June 2021)


○ ✅ MODEL TENANCY ACT, 2021: GS III - Economics Part IV (June 2021)
○ ✅ IBC: GS III - Economics Part II (June 2020) & (July 2021)
○ ✅ ASSET RECONSTRUCTION COMPANY (ARC): GS III - Economics Part II (Feb & July 2021)
○ ✅ NATIONAL MONETISATION PIPELINE: GS III - Economics Part II (Aug 2021)
○ ✅ PRADHAN MANTRI JAN DHAN YOJANA…: GS III - Economics Part II (Aug 2021)
○ ✅ PRIVATE SECTOR PARTICIPATION IN RAILWAYS: GS III - Economics Part IV (July 2020 & August 2021)
● Agriculture — Imp. CA for Mains 2021
○ PRADHAN MANTRI KISAN SAMMAN NIDHI… (Jan 2021)
○ JAL JEEVAN MISSION URBAN (Feb 2021)
○ GM - CROPS (Feb 2021)

○ ✅ 4 YEARS OF GOODS &…: GS III - Economics Part II (June 2021)


○ ✅ MODEL TENANCY ACT, 2021: GS III - Economics Part IV (June 2021)
○ ✅ IBC: GS III - Economics Part II (June 2020) & (July 2021)
○ ✅ ASSET RECONSTRUCTION COMPANY (ARC): GS III - Economics Part II (Feb & July 2021)
○ ✅ NATIONAL MONETISATION PIPELINE: GS III - Economics Part II (Aug 2021)
○ ✅ PRADHAN MANTRI JAN DHAN YOJANA…: GS III - Economics Part II (Aug 2021)
○ ✅ PRIVATE SECTOR PARTICIPATION IN RAILWAYS: GS III - Economics Part IV (July 2020 & August 2021)
● Agriculture — Imp. CA for Mains 2021
○ ✅ PRADHAN MANTRI KISAN SAMMAN NIDHI… (Jan 2021)
○ JAL JEEVAN MISSION URBAN (Feb 2021)
○ ✅ GM - CROPS (Feb 2021)

To Do:

1. Watch Mrunal Video 25, 26, 27


2. Cursory Glance at Kurukshetra after reading PYQs
a. Questions are sometimes directly lifted from Yojana and Kurukshetra magazines
b. So, read Yojana & Kurukshetra magazines → Chief Editor’s Desk (Preface) of last 2 years’ monthly issues - This
will tremendously help you assemble fodder points for variety of questions -not only in the agricultural sector, but
also for rural development, poverty removal, even for the essay paper
3. NiTi: 3 Skipped Chapters
4. Agriculture — Gulati — https://indianexpress.com/profile/author/ashok-gulati/
5. NCERT class12 biology textbooks ch.12 “Application of biotechnology” Because verbatim question asked in 2019- “How
can biotechnology help farmers?”
6. Farming/cropping technology: Sadly, this topic is scattered across NCERT, Majid, ShankarIAS, Kurukshetra Magazine,
And current affairs from newspapers (e.g. Zero budget farming or Sikkim as organic state of India)!
7. Mrunal.org
8. Vision IAS
9. The Hindu and Civils Daily for current affairs.
10. You need to remember that for GS-3, questions revolve around current affairs and there is no dearth of material. It may
sound counter-intuitive, but the trick is to restrict yourself to material that’s good enough for you to write a 250-word
answer for all topics. It’s very important that you don’t get sunk under the heap of current affairs and coaching
material.
11. So for each topic mentioned in the syllabus, make concise notes from the resources mentioned above. I also found Niti
Aayog’s 3-year Action Plan report really helpful for this paper. And just as I had mentioned for GS-2, statistics and
committee reports are very important.

Syllabus:

● Major crops Cropping Pattern in various parts of the country


● Different types of irrigation and Irrigation System storage,
● Transport of Agricultural produce and Marketing of Agricultural produceand issues and related constraints;
● E-technology in the aid of farmers
● Issues related to
○ Direct & Indirect farm subsidies
○ MSP
○ PDS - objectives, functioning, limitations, revamping;
○ Issues of Buffer Stocks and Food Security;
● Technological Mission
● Economics of Animal rearing;
● Food processing and related industries in India- scope and significance, location, upstream and downstream
requirements, Supply Chain Management
● Land reforms in India.
PYQs:

This block contains Topics related to farming, food processing and food security.

Food: Cropping-irrigation

A B

1 How far is the Integrated Farming System (IFS) helpful in sustaining agricultural production? 2019
2 Elaborate on the impact of the National Watershed Project in increasing agricultural production from water-stressed areas. 2019
How was India benefited from the contributions of Sir M.Visvesvaraya and Dr. M. S. Swaminathan in the fields of water
3
engineering and agricultural science respectively? 2019

4 Sikkim is the first ‘Organic State’ in India. What are the ecological and economical benefits of Organic State? 2018

5 Assess the role of National Horticulture Mission (NHM) in boosting the production, productivity and income of horticulture farm 2018
s. How far has it succeeded in increasing the income of farmers?
How has the emphasis on certain crops brought about changes in cropping patterns in recent past? Elaborate the emphasis
6
on millets production and consumption. 2018

What are the major reasons for declining rice and wheat yield in the cropping system? How crop diversification is helpful to
7
stabilize the yield of the crop in the system? 2017

8 What is water-use efficiency? Describe the role of micro-irrigation in increasing the water-use efficiency. 2016

9 What is allelopathy? Discuss its role in major cropping systems of irrigated agriculture. 2016
10 Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient 2016
features of the Pradhan Mantri Fasal Bima Yojana (PMFBY)

Food: Tech. in aid of farmers

GS3 Syllabus Topic: e-technology to aid farmers, Technology missions;

A B

1 How can biotechnology improve the living standards of farmers? 2019

Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped
2
in poverty alleviation and food security in India? 2017

3 How can the ‘Digital India’ programme help farmers to improve farm productivity and income? What steps has the Government t 2015
aken in this regards?
4 “In the villages itself no form of credit organisation will be suitable except the cooperative society.” – All Indian rural credit surve 2014
y. Discuss this statement in the background of agriculture finance in India. What constrain and challenges do financial institution
s supplying agricultural finances? How can technology be used to better reach and serve rural clients?

Food: Food processing industry

GS3 Syllabus Topic: Food processing and related industries in India (scope & significance, location, upstream-downstream
requirements, supply chain management); storage, transport & marketing of agro-produce and related issues & constraints;
Economics of animal-rearing

A B

1 Elaborate on the policy taken by the government of India to meet the challenges of the food processing sector. 2019
Examine the role of supermarkets in supply chain management of fruits, vegetables and food items. How do they eliminate number of
2
intermediaries? 2018

What are the reasons for poor acceptance of cost effective small processing unit? How the food processing unit will be helpful to uplift
3
the socio-economic status of poor farmers? 2017
Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable
4
measures to promote this sectors in India 2015

In view of the declining average size of land holdings in India which has made agriculture non-viable for a majority of farmers, should
5
contract farming and land leasing be promoted in agriculture? Critically evaluate the pros and cons. 2015

What are the impediments in marketing and supply chain management in industry in India? Can e-commerce help in overcoming
6
these bottlenecks? 2015

There is also a point of view that agriculture produce market committees (APMCs) set up under the state acts have not only impeded
7
the development of agriculture but also have been the cause of food inflation in India. Critically examine. 2014

India needs to strengthen measures to promote the pink revolution in food industry for better nutrition and health. Critically elucidate
8
the statement. 2013

Food: Land reforms

GS3 Syllabus Topic: Land Reforms in India

A B

Discuss the role of land reforms in agricultural development. Identify the factors that were responsible for the success of land
1
reforms in India. 2016

2 Establish the relationship between land reform, agriculture productivity and elimination of poverty in Indian Economy. 2013
Discussion the difficulty in designing and implementation of the agriculture friendly land reforms in India.

Food: MSP

GS3 Syllabus Topic: Farm subsidies and MSP and issues therein (direct and indirect); PDS (objectives, functioning,
limitations, revamping, issues of buffer stocks & food security)

A B

1 What are the reformative steps taken by the government to make food grain distribution system more effective? 2019
2 What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap? 2018

3 How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, 2017
minimum support price and food processing for small and marginal farmers?

Food security bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective
4
implementation along with the concerns it has generated in WTO 2013

What are the different types of agriculture subsidies given to farmers at the national and state levels? Critically analyze the
5
agriculture subsidy regime with the reference to the distortions created by it. 2013

Important Points:

● “Data”
● Committee/Commission
● Various Farming Techniques:
● Draft National Food Processing Policy,…
● LAND LEASING
Agriculture reforms during COVID 19:

1. Switch from cash to food crops


2. Listen to the Prime Minister’s ‘go local’ message and invest in redirecting supply chains locally;
3. Increase government allocations to poor farmers through the PM KISAN scheme by including everyone, even those
who do not own land;
4. Ensure timely availability of seeds and fertilisers for the next season
5. Involve Farmer Producer Organisations (FPOs) in the process to ensure the safeguarding of farmers’ rights.

Agricultural Development
History

1. 1940s — After Independence, the immediate goal was to increase foodgrains production by focusing on
a. Switching over from cash crops to food crops;
b. Intensification of cropping
c. Increasing cultivated area
2. 1950s - Agricultural production stagnated. To overcome this problem, Intensive Agricultural District Programme
(IADP) and Intensive Agricultural Area Programme (IAAP) were launched.
a. Focus on Agriculture
i. Land Reforms
ii. Public Investment = i. Irrigation ii. Multi-purpose River valley projects.
3. 1960s - Two consecutive droughts resulted in food crisis in the country.
4. 1960s - Green Revolution was launched. New seed varieties of wheat (Mexico) and rice (Philippines) known as
high yielding varieties (HYVs) were introduced for cultivation by mid-1960s.
a. This also gave fillip to the development of a large number of agro-inputs, agro-processing industries.
b. Technological Modernisation of Agriculture
i. Modern Seed inputs (HYV Seeds)
ii. Fertiliser & Pesticides
iii. Irrigation - Tubewell
5. 1970s - Green Revolutions led to regional disparities. It later spread to the Eastern and Central parts of the country.
6. 1980s, Planning Commission initiated agro-climatic planning in rain-fed area to induce regionally balanced
agricultural development in the country.
a. Emphasis was put on diversification, dairy farming, poultry, horticulture, livestock rearing and aquaculture.
7. 1990s - Liberalisation impacted Agriculture.
a. Lack of development of rural infrastructure, withdrawal of subsidies and price support, and impediments in
availing of the rural credits lead to inter-regional and inter personal disparities in rural areas.
8. In 2000s —
a. The net irrigated area has increased from 20 to 55 million ha over the period 1950-51 to 2000-01.
b. In 2001-02, per hectare consumption of chemical fertilisers was 91 kg at paar with World average.

Current Initiatives
6. Pradhan Mantri Fasal Bima Yojana - 2016
a. To provide insurance to farmers from all risks.
i. Shortcoming: -
1. Outdated method of crop loss assessment;
2. Inadequate and delayed claim payment;
3. High pre­mium rates;
4. Poor execution.
ii. ~15% of the total farmers (1 Crore) insured in the first year of the PMFBY in 2016-­17, withdrew
themselves from the scheme in 2017­-18.
iii. Suggestions: -
1. Better Technological interventions for crop assessment.
2. Convert PMFBY into a fully Centre-funded scheme solution to delays by State
3. Farmers are not literate enough, so thus differential subsides depending upon farm sizes have to be
given like we do it for electricity. Small Holders - free coverage and premium gets on increasing as
size holding is increasing.
4. Universal coverage of small farm holders.
5. Transparency in Insurance scheme design.
7. Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-­AASHA) - To provide MSP for oilseeds, pulses and Copra!
a. Price Support Scheme (PSS) - existing: - Will continue for pulses and co­p ra, with Central agencies —
including the NAFED and FCI — physically procuring the produce up to a maximum limit of 25% of the total
harvest. The Centre will bear the costs, as per existing guide­lines. State government playing a “proactive role”.
i. For Oilseeds only 👇🏻 - Either PSS to two new options: -
b. Price Deficiency Payment Scheme (PDPS): - (Bhavantar experi­ment in MP) where there is no physical
procurement at all. Instead, farmers will sell their produce in the market, and the government will di­rectly pay
them the diffe­rence between the MSP and the average market rate {within states and outside the states} (Modal
Price).
c. Private Procurement Stockist Scheme (PPSS) - (Pilot Scheme): - Here, selected priv­ate agencies will procure
the commodity at the MSP, in­stead of the government. Maximum service charges up to 15% of the notified MSP
will be payable, said the statement.
8. Market Reforms: -
a. Model Agricultural Produce and Livestock Marketing Act, 2017
b. Model Contract Farming and Services Act, 2018.
c. Gramin Agricultural Markets (GrAMs) to promote 22,000 retail markets in close proximity of farm gate
d. Wholesale trade at APMC through eNAM and a robust and pro-farmer export policy.
9. Committee on land reforms — T Haque, which recommended a Model Land Lease Act (2016)
a. AP’s Land Licensed Cultivators Act, provided loans, subsidies, insurance to tenants.
10. Rashtriya Gokul Mission — Conservation and sustainable use of indigenous breeds of cattle
11. ‘Assistance for Deep-Sea Fishing’ under ‘Blue-Revolution’: - DADF (Department of Animal husbandry, Dairy and
Fishing)
a. Fish production in India is estimated at 11.4 million tonnes
b. Gagan Enabled Mariner’s Instrument for Navigation and Information (GEMINI) device, a satellite-based
advisory service for deep-sea fishermen — for disaster warnings, Potential Fishing Zones (PFZ).
c. Meena Kumari Committee — had recommended optimum utilisation of the Exclusive Economic Zone (EEZ)
— sea between 22 and 370 km from the coast.
12. Prime Minister - Central Sector Scheme of a financing facility under Rs. 1 Lakh Crore Agriculture Infrastructure Fund.
13. Prime Minister recently pitched for taking agricultural education to middle school level using reforms proposed by
National Education Policy (NEP), 2020.

A PM Kisan RBS KALIA

1 For Whom? All farmers - Per Acre All farmers - Per Acre Only Small and Marginal Farmers
2 How much? Rs. 6000/Year - 3 Installments DBT of 4000 per acre per season Rs. 5000 for 2 seasons per family
3 How Many? 100% - 92%
4 Sharecropper/Landless
5 Elders
Per Acre Basis - Regressive. Rich Standard Payments - Progressive and
6 Method Fixed Income are not exluded Insurance
1. Paying Taxes
7 Exclusions None None 2. Gov. Employees
8 Allied Activies No No Yes for Landless for livestock etc.

DROUGHT

Drought is a temporary aberration, unlike aridity, in terms of a well defined dry season. Deficient rainfall is considered
to be the primary instigating factor for drought.

● Low average annual rainfall of 750 mm over 33% of the cropped area heightens the susceptibility to drought

Declaration of Drought Effects of Drought Relief Measures

1. Rainfall deviation and dry 1. Economic: Production 1. Financial assistance to


spell losses in agriculture and states
2. Soil moisture, and other sectors. 2. Contingency crop planning,
hydrology 2. Environmental: Decreased 3. Relief employment,
3. Sample Survey by State water levels in reservoirs,
4. Food security
canals
Drought: — Notification for 6 5. PMKSY
3. Social: Migration of
Months. 6. National Rainfed Area
population
Development Programme,
7. National Rural Drinking
Water Programme

The “Three” Agri Bills

Why? Problems:

● Unremunerative of farming ● Federal Spirit — Agriculture is a State subject +


● Issues with APMCs - Needs localised solutions — Punjab and
Haryana
○ Limited number of traders - cartelization
● Limited discussion in Parliament
○ Undue deductions in form
of commission and market fees. ● Non consultative approach — Organisations

○ Restrictive for multiple tracks of


marketing
● Attracting private investment.

1 - Farmers' Produce Trade and 2 - Farmers Agreement on Price 3 - Essential Commodities Act,
Commerce Act, 2020 Assurance & Farm Services Act, 2020
2020
● Allows intra and inter- ● A stock limit may be
state trade of farmers’ ● Provides for farming imposed only if there is: (i)
produce outside APMC agreement between a a 100% increase in retail
markets farmer and a buyer prior to price of horticultural
● Promotes electronic trading the production (Max. 5) produce; and (ii) a 50%
● Pricing agreement increase in the retail price
● Market Fee levied by state
is abolished ● Broad for Dispute of non-perishable
settlement agricultural food items.
Good:
Good:
Good;
● Reduced role of
● End harassment of traders
intermediaries ● Promotes Contract farming
● Help reduce wastes
● Integrated markets - 1N1M ● Write other benefits of CF.
● Stabilise prices
● Encourage APMC reforms - ● Dispute Resolution
● Attract investments
PvT

Bad: Bad:
Bad:
● No methodology of price ● Will lead to anti-competitive
● Sudden change fixation behaviour
● Dual Market - Market Areas ● Apprehension - Might ● May disrupt the supply
and Trade areas. dismantle of MSP in future chain especially at the time
● No regulation over Trade ● No written contracts will of crisis
markets favour Big corporates with
● State Gov will lose Mandi legal proficiency at behest
Tax of farmer

Problems in Agriculture Solutions for Agriculture


● Low Productivity — Low Yields when 1. India spends 0.37% of agri-GDP on agri-
compared to USA, Japan and Russia and Low R&D (Eco Survey 2018-19). This needs to
Labour productivity. triple in 5 years.
● Lack of effective implementation of Land 2. Create FPOs — 10,000 → 70,000 Doubling F’s
Reforms — Exploitation of Peasants due to I
unequal distribution of Land. 3. Expand the reach of farmers to institutional
● Constrains of Financial Resources and credit. [Kisan Credit Card (KCC) ~ Only 10%
Indebtness — Lack of Credit, collateral issue (NABARD 2015-16]
and meagre saving or no saving for capital a. Kerala’s Kudumbashree: women (JLG)
investments. and get access to agricultural credit from
● Small Farm Size and Fragmentation of NABARD
Landholdings — Average size of operational 4. Ensure that the Model Agricultural Produce
holding has declined to 1.08 hectare in 2015- and Livestocks Marketing Act of 2017 is
16 implemented
○ Lack of Awareness 70% don’t get
5. Set up an Agri-marketing Reforms Council
information (AMRC), on the lines of the GST Council
● Lack of Commercialisation — A large
6. Establish a farm data agency, which can
number of farmers produce crops for self- consolidate, collate and maintain farm data
consumption.
a. Linking of all gram panchayat at a
● Vast Underemployment — Agri - 14.6% of
national scale
GDP and 46% of Employment
7. Commissioning ease of farming index is
● Dependence on Monsoon: - 33% Area is necessary to ascertain the progress made by
irrigated + 3/5 members depends on Rain national and State
(Ashok Dalwai)
8. Deliberate on an ‘Indian Agricultural
● Degradation of Cultivable Land — Depletion
Service’ on the lines of Agricultural Research
of soil fertility due to alkalisation and Service of the US.
salinisation of soils and waterlogging, 15
million hectares of land. 9. Help farmers produce solar power on their
● Agricultural Emissions in India: — 18% of lands, making annadata an urjadata - Can
gross national emissions. double farmers income! Can add upto Rs 1
Lakh a year!
10. FARM MECHANISATION — Farm
mechanisation in India is about 45% (China:
57%, Brazil: 75%)

FARM MECHANISATION

Good: Challenges: Way Forward

1. Input saving and better 1. Affordability 1. Contract/Leasing or FPOs


yield 2. Small avg. land holding size 2. Consolidation — Land
2. Increased Efficiency - 2.66 acres - Agri Census reforms
3. Social benefits — Safety, 2015 3. Ease of financing
Women 3. Low credit availability 4. Small machine individually
4. Save cost on labour by 20% 4. Dependent population — operated
5. Optical usage of inputs Availability of Labour in 5. Make in India and make for
family India — Location specific
5. Low awareness
6. Farm power

WOMEN IN INDIAN AGRICULTURE

● Data: —
○ FAO: Women constitute a third of India’s agricultural labour force and contribute 55-66% to farm production.
○ As per Agriculture Census 2015-16, female operational holdings increased to 14.0 percent in 2015-16 against
and 12.8 percent in 2010-11.
● Three main roles: —
○ Paid Labourers.
○ Cultivator doing labour on their own land.
○ Managers of certain aspects of agricultural production by way of labour supervision
● Mahila Kisan Sashaktikaran Pariyojana (MKSP) = Ministry of Rural Development + to empower women in
agriculture by making systematic investments to enhance their participation and productivity

Issues: WF:

● Low land and asset ownership: Patriarchal ● Enhancing representation of women in


social norms and limited awareness about their decision- making bodies
property rights - Contrast FAO (55%) data with ● Agricultural education be made gender
Census (14%) sensitive
○ Women are also not recognised as ● Technological advancements: Easy to use for
farmers in Indian policies. women.
○ Land titles act security for credit, basis ● Promoting women SHGs
for entitlement of agriculture-related
● Women centric schemes in animal husbandry
schemes etc.
● Prioritising women in accessing credit on soft
● Wage gap
● Lack of supportive infrastructure: not designed terms
with women farmers in mind. ● Awareness generation among women
● Absence of decision-making power regarding their inheritance rights + judicial relief
● Limited to drudgery work ● Skill development training
● Illiteracy: Little awareness ● Policy emphasis must be to recognise the work
of female farmers and grant equal pay to them.

Data

Parameter Figures Source

1 Food Production 284 mn tonnes Annual Report - Agri Min.


2 Employment 47% Economic Survey 2019-20
3 GDP Contribution 14% Economic Survey 2019-20
4 Wasteage of Food Rs. 92,000 Crs CIPHET
5 Suicides 3 Lakhs in 2 Decades NCRB
6 Rainfed Area 52%
7 Land to Human Ratio 0.31 ha 0.59 ha - World
8 GHI 103 (2018)

● India: - 18% of World Population and 4% of ● Justice Wadhwa Committee — “End to End
water resources, 12% of land under Automation” for ending leakages in PDS
cultivation. ● Ashok Dalwai committee report: — Investment
● Agricul­ture Export Policy aimed at increasing of Rs 89,375 crore—a figure marginally lower
India’s exports to $60 billion by 2022 from than the annual post-harvest losses—is
the current $37 billion needed for proper storage.
● OECD (in collaboration with ICRIER) ● Every Rupee spend on Agri R&D yields ₹11 in
“Agricultural Policies in India” report says: Return.
- Gross revenue by Farmers have decreased ● LIVESTOCK - 4% to India GDP + NSSO: 16.44
by 6% even though Gov's spending has million people are engaged in the activities of
increased. farming of animals, mixed farming, fishing and
● Centre for the Study of Developing aquaculture + 11% of the world’s livestock
Societies (2018) population
○ Only 10% of the poor and small ● According to Oxfam India, women are
farmers with average land holding of 1-4 responsible for about 60-­80% of food and 90%
acres have benefited from government of dairy produc­tion.
schemes and subsidies. ● In Agricultural Cen­sus 2015, almost 86% of
○ 70% did not get any information or women farmers are devoid of this proper­ty right
advice regarding farm practices. in land
● Ashok Dalwai Commitee → Vision of ● FAO: → Equalising access to productive
doubling farmers’ income by 2022 resources for female and male farmers could
○ 3/5 Farmers depend on Rainwater (No increase agricultural output in developing
Irrigation) countries by as much as 2.5% to 4%

○ 40% less income from agriculture ● Poor Infrastructure — Agro products are

when compared to those in irrigated getting merely 30-35% of their market price
areas. due to SCM issues.

● State of Indian Farmers report of Centre for ● Food Processing: 32% of Total food market

Study of Developing societies pointed out that + 10.69% of India’s export ($36 Bn) - WCO
76% of the farmers would like to quit + Can curb post harvest lost (Rs. 92,000 Cr -
farming if given a chance. CIPHET)
○ The number of agricultural labourers ● In National food security Act, cover only 40%
who died by sui­cide in 2020 was 18% instead of 67%.
higher than the previous year. ● The current food grain storage capacity in the
● Currently it is 58% higher than current buffer country is 88 million tonnes (MT).
stock norms ● Fiscal burden — Revisit Food subsidy (Rs
● Over 10 crore people have been excluded from 1,84,220 crore) [Budget 2019-20].
the Public Distribution System because ● The India Human Develop­ment Survey reports
outdated 2011 census data that 83% of agricultural land in the country is
● Leakages — Acc. to NSSO, 43% of PDS inherited by male mem­bers of the family and
allotment never reaches beneficiaries. less than 2% by their female counterparts.

Agricultural Census (Provisional Release — 2015)

● Conducted every 5 years as part of World Agriculture Census. Started in 1970-71. Min. Of Agriculture.

1. Landholding — Small and marginal holdings taken together (up to 2 hectares) constitute over 86% (125 mn)
a. Share of Female land owners = 13.87% 2015-16 from 12.79% in 2010-11
2. Average size of operational holding has declined to 1.08 hectare in 2015-16 from 1.15 hectare in 2010-11.
3. According to the Agriculture census 2015-­16, the real income of farmers doubled in almost 20 years from 1993­-94 to
2015­-16.

Increased productivity is possible only if farmers have greater access to


knowledge, technology and credit. - Naidu VP.

Free power and farm loan waivers cannot be a perma­nent solution to the pro­blems in
the agriculture sec­tor - VP Naidu

Cropping Pattern
● h
 ttps://indianexpress.com/article/opinion/columns/india-farmers-welfare-programme-narendra-modi-world-food-day-
hunger-index-6843741/

Crops: Geography NCERT - 12th India People and


Economy (2/3)
A B C D E F G H

1 Millet 16
2 Jowar 5.3 Both Sandy >16, 26-33 Thoda sa MS, Kar
3 Bajra 5.2 Kharif Sandy, Black 25-30 40-50 Raj, Guj
4 Maize 3.6 Both (Kharif) Old Alluvial 21-27 Moderate Kar
5 Ragi Red, Black 20-30 50-100 MS, Kar, TN
6 Cotton 4.7 Kharif Black Cotton 21-30 50-100 MS, Guj 2nd
7 Tea Deep, Fertile 20-30 150-300 Ass, WB, TN 1st
8 Coffee Kharif 15-28 150-250 Kar, Ker, TN 6th
9 Sugarcane Variety 21-27 75-100 UP, MS 2nd (Brazil)
10 Maize Both 21-27 50-100 Kar, UP
11 Wheat 14 Rabi Loamy 10-15, 21-26 50-75 UP, Pun, Har
12 Rice 25 Kharif Alluvial Clay >25 >100 W-UP, Pun, Har 2nd (China)
13 Rubber >25 >200 Ker, Kar, TN 4th
14 Pulses 11 20-25 40-50 MP, UP 1st
15 Gram 2.8 Rabi Thoda sa MP, UP, MS
16 Tur 2 Thoda sa MS, UP, MP
17 Jute 0.5 Alluvial Fertile, Drain High High WB, Bihar, Ass 1st
18 Oilseeds 14
19 Groundnut 3.6
20 Rapeseed 2.5

Factors contributing to change in Patterns of Cropping:

1. MSPs
2. Water scarcity — From traditional high-water demand cropping viz. rice–wheat to maize–wheat.

Q. Are existing crop patterns in line with the Natural water resource endowments of various regions? — Kurukshetra

○ Study: “Water productivity Mapping of Major crops” — by NABARD and ICRIER

i. There are regions which are heading towards unsustainable agriculture with highly skewed
distribution of water for certain crops.
ii. Rice and Sugarcane consume 60% of the total water used by Agriculture.

Various Farming Techniques:

1. Precision Seed Sowing and Planting — Depth and Spacing


2. Nutrient Management
a. Smart Fertilisers — Nano technology + Bio fertilisers
b. Soil Health Card
3. Efficient Water Management
a. Micro-irrigation
b. Use of IoT for automation irrigation system
4. Innovative practices for Weed and Pest
a. New Generation Herbicides
b. AI and Automation of Weed management
5. Resource Conserving Practices
a. Laser Land Levelling
i. Direct Seeded Rice (DSR) and Transplanted Rice (TPR)
6. Innovation practices for Higher productivity
a. Crop Diversification
i. Temporal/Rotational/Horizontal
ii. Spatial/Vertical
iii. Replacing Rice-Wheat with Maize/Cotton
b. Integrated Farming System
i. Diversification of cropping system
ii. Cost effective technologies for narrowing yield gaps
iii. Integrating Horticulture and Dairy with traditional farming
c. Conservation Agriculture
i. Minimum Soil disturbance — Reduced Emissions and More Soil fertility.
ii. Maximum soil cover — Soil Erosion
iii. Crop diversification
d. Climate Smart Agriculture
e. Organic farming

ORGANIC FARMING

● FAO: — Organic agriculture is a system which promotes and enhances agro-ecosystem health, including biodiversity,
using on-farm agronomic, biological and mechanical methods in exclusion of all synthetic off-farm inputs.
○ In 2016, Sikkim became 1st organic state of India.
○ India ranks 8th in the World.
● Government Policies: —
○ Paramparik Krishi Vikash Yojana programme: to promote traditional organic farming.
■ Under the scheme, 600 extra hectares of land will be farmed organically from 30 clusters of tribal
hamlets.
○ Mission Organic Value Chain Development for North East Region (MOVCD)
○ Soil Health Card
○ Agri-Export Policy 2018
○ ZBNF
● Organic farming involves various techniques:

1. Crop Rotation to avoid pests and to maintain soil fertility.


2. Using Green Manures
3. Biology Pest Control: Using living organisation to protects plants
4. Vermicomposting: A process of composting using different worms for preparation of compost w/the mix of kitchen waste
and other vegetables waste
● Benefits:

1. Healthy Foods — High antioxidant, Nutrition


2. Ecological benefit — Soil Quality, Reduced Pollution, Low incidence of Pests
3. Efficient use of resources — Water, Energy
4. Economic Benefits: — Income, Employment opportunities

● Challenges:

1. Lack of an organic policy for the domestic market and exports.


2. Supply chain is underdeveloped. Small and mid-sized farmers located in hilly regions and tribal belts find it
extremely difficult to access the market.
3. Farmers can not export self certified products under PKVY.
4. Risk of immediate loss in yield due to conversion of land from chemical-based farming to organic farming
5. There is a serious shortage of good quality organic inputs, which increases the risk of loss of yield
6. Government subsides for fertilisers
7. Lack of quality standards for manures
8. Confused certification framework

● Way Forward:

1. Awareness: — “Swachh Food”


2. Smart transport supply chain
3. Training on aspects such as soil building, pest management, inter-cropping, and compost and manure preparation.
4. Agronomists must be deployed in the field to monitor the quality of produce
5. Certification programmes such as the Indian government’s National Centre for Organic Farming (NCOF) and
Participatory Guarantee Scheme (PGS) need to be made mandatory.
6. Transparent regulatory framework for compliance of organic standards to develop trust among customers.
a. FSSAI’s Jaivik Bharat logo

ZBNF
● https://www.thehindu.com/sci-tech/agriculture/zero-budget-natural-farming-back-on-top-of-government-
agenda/article37948720.ece
● https://www.thehindu.com/sci-tech/agriculture/the-push-for-zero-budget-natural-farming/article37964198.ece
● https://www.thehindu.com/opinion/lead/stirring-up-the-truth-about-zbnf/article29620843.ece

Zero Budget Natural Farming (ZBNF) is growth of crops without adding any fertilisers and pesticides leading to zero cost
of production — “back to the basics” approach

● NSSO data: Almost 70% of agricultural households spend more than they earn.
● According to the Economic Survey, more than 1.6 lakh farmers are practising the ZBNF in almost 1,000 villages

Sh. Subash Palekar (Father of ZBNF) gave 4 Wheels of ZBNF

1. Bijamrita (Seed Treatment using local cowdung and cow urine)


2. Jiwamrita (applying inoculation made of local cowdung and cow urine without any fertilizers and pesticides)
3. Mulching (activities to ensure favourable microclimate in the soil)
4. Waaphasa (soil aeration).

Pros: Initiatives:

1. Lower Inputs, Better incomes. 1. Karnataka where it first evolved.


2. Retaining soil fertiliting 2. AP plans to become 100% ZBNF State by 2024
3. Climate Change resilient. 3. Himachal Pradesh’s Prakritik Kheti Khushhal
4. Good for Marginal and Small Landholders. Yojana (PK3Y) — Women farmers happily
adopting ZBNF!
5. Save 90% of irrigation waters
4. Budget: “Back to Basic approach”
Challenges:
Way Forward:
1. No independent studies validate the claims
of ZBNF 1. Multi-location studies are needed to
scientifically validate the long-term impact
2. ZBNF is not “0” budget.
2. Funding by Government for developing ZBNF.
3. One blanket solution for all problems of
Indian soils 3. Enabling institutional mechanism could be
set up to promote the technology.
4. Studies show ZBNF yields drop after a few
years.
5. Sikkim experienced decreases in yields
following the Organic farming movement.

Economic Survey of 2018­-19 had advocated ZBNF as a “lucrative livelihood op­tion”. FAO of UN advices such
sustainable farming practices.

SHIFTING CULTIVATION

● NITI Aayog: Land for shifting cultiva­tion should be recognised as “agricultural land” rather than as forestland.
○ Categorised as ‘regenerating fallows’ and extend credit facilities.
● Between 2000 - 2010 = Land under shifting cultiva­tion dropped by 70%.
Problems: Solutions:

1. Data Gap 1. Remote sensing


2. Land Ownership, 2. Other Employment Opportunities
3. Poverty and Land Degradation Nexus 3. Insurance Scheme
4. Poor Infrastructure and Underdevelopment 4. Infra
5. Absence of Land use Plan 5. R&D
6. Informing about better agricultural practices -
scientific.

SUGAR INDUSTRY IN INDIA

● India is the largest producer of sugar.


○ Employment — 50 million sugarcane farmers and around 5 lakh workers.
○ India (2nd) contributes to 15% of Global Sugar and 25% of Sugarcane.
● Shifting trends to Peninsular India: —
○ Longer crushing period and adequate rainfall
○ Higher recovery rates
○ Higher sucrose content than northern India
○ Easier transportation access due to port areas etc.
● Challenges:
○ Cane reservation area and bonding of farmers and Mills to trade sugarcane. This reduces bargaining power of
Farmers and supply of cane to Mill.
○ Minimum radial distance of 15 km between any two sugar mills — inhibits entry and investment
○ Issue with sugarcane pricing (FRP and SAP): Dual sugarcane pricing distorts sugarcane
○ Trade policy for sugar: The government had set controls on both exports and imports.
○ Low level of productivity of sugarcane: — Due to inadequate irrigation
○ Obsolete and old machinery.
○ Regional imbalances in distribution.
● Steps taken:
○ Changes in levy of duty- The import duty was increased from 50% to 100%, along with the removal of the 20%
export duty.
○ Building of buffer sugar stock of 30 lakh tonnes
○ Other subsidies- Production subsidy, transport subsidy
○ Ethanol Blending Program — Mandatory 10% ethanol blending (E10) with petrol across the country. (New Bio-
fuel Policy in 2018)
● WF: —

1. Rangarajan Committee: —
a. States should not declare State Advised Price (SAP).
b. Convert all quantitative restrictions on trade into tariffs.
2. Improve Cane pricing — Link the sugarcane to output price + One-time increase in MSP for sugar to Rs 33/kg (from Rs
31) to unburden mills.
3. Imposition of Sugar cess — of Rs 50/quintal (excluding exports) for three years.
4. Nudging farmers away from sugar cropping
5. Co-Power Generation technology.

Irrigation System
Irrigation is a process where the artificial application of water is arranged to give the water to land or soil.

Conclusion: Economic Survey 2018–19 suggests that “focus should shift from ‘land productivity’ to ‘irrigation water
productivity’.

http://mowr.gov.in/best-practices
Data: →

1. India has only 4% of the global fresh water resources - 18% of World’s population.
2. In India, Irrigated area = 48%. Rain Fed = 52%.
3. FAO: — In last century global water withdrawal grew 1.7 times faster than the population.
4. 60% of total water in agriculture consumed by Rice and sugar.
5. Improve Irrigational efficiency by 10% can solve the drinking water problem of our cities.
a. Micro and drip irrigation, with sensor-based technologies, can raise efficiency to 90%.
b. The efficiency of surface irrigation systems is around 30–40%
6. Long Term Irrigation Fund (LTIF) of Rs 40,000 crore was created with the NABARD to help states to complete
these projects in time.
7. Agricultural irrigation accounts for 90% of India’s freshwater withdrawals (global average being 70%).
8. Between 2000 and 2017 India’s groundwater depletion increased by as much as 23%.
9. Inspite of China having larger area under irrigation than India, China withdraws much less water for agricultural
purposes.

Types of Irrigation

Type 1950-51 2009-10 2018-19

1 Canals 40% 30% 24%


2 Tanks 15% <4% ~2%
3 Tube Wells 30% >60% 63%
4 Others 15% 6% 11%

1. Canal — UP, Haryana, Punjab. (Fertile Soft


Rock)
a. Oldest though Least Efficient
b. Command Area Development
Program!
c. Advantages:
i. Cheap in the long run
ii. Canals are parts of multipurpose
project
iii. Canal carry sediments add fertility
of soil
iv. Perennial irrigation and supply
water
d. Problems:
i. Efficiency depends on Dam!
ii. Silting & Seepage losses
iii. Evaporative losses
iv. Submergence of lands
(Rehabilitation)
v. Prone to disputes (Eg. India-
Pakistan Neelam River)
vi. Need of Field levelling and Field
grading
2. Tank - More in South India (AP, TN)
a. A tank is a water storage ~ a small bund
of earth or stones built across a stream
b. More in South India (AP, TN)
i. Hard Rock = No Canals
ii. Hard Rock = No Ground Water
iii. Rivers are seasonal, dry up in
summer
c. Tank of 3-4 areas - rainwater is stored in
it
d. Temple Town system promotes it and
panchayat manages it.
e. Advantages
i. Less Cost
ii. Longer life
iii. Fishing is also carried - extra
income.
f. Disadvantages:
i. Rain-fed region
ii. Silting of the tank bed
iii. Evaporative losses
3. Well (5 meters), Tube Well (15 meters)
a. Simplest, cheapest and major source
of irrigation - Groundwater
b. Suitable where ground water is in
plenty
c. Great Northern Plain, the deltaic regions
of Mahanadi, Godavari, Krishna and
Cauvery.
d. Greater part of the Peninsular India is
not suitable for it due to rocky structure,
uneven surface and lack of ground
water.
e. UP, Rajasthan, Punjab, MP, Gujarat.
f. Advantages:
i. Works for rain-fed area
ii. No evaporative losses.
iii. No seepage problem
iv. No submergence of land.
v. No network of canals
vi. More reliable during periods of
drought when surface water
dries up.
vii. Suitable for smallholdings.
viii. Solar energy pumps can be
used
g. Disadvantages:
i. Extraction of groundwater -
lowering of water table
(Unsustainable)
ii. Lack of electricity
iii. Requirement of capital
investment
iv. Only limited area can be
irrigated
v. Not suitable for brackish area (RJ,
Pun)

4. Drip irrigation (Micro-Irrigation — PYQ)


a. In drip irrigation, water is applied near the plant root through emitters, on or below the soil surface
b. The soil moisture is kept at an optimum level with frequent irrigations.
c. Drip irrigation results in a very high water application efficiency of about 90-95%.
d. Maha, AP, Karnataka, TN
i. However, only about 15% of potential areas could be brought under micro-irrigation,
e. Advantages: →
i. Fertiliser and nutrient loss is minimised due to localized application
ii. Field levelling is not necessary. Fields with irregular shapes are easily accommodated.
iii. Less Labour costs
iv. Soil erosion and weed growth is lessened.
v. Water is saved.
f. Disadvantages: →
i. Initial cost can be more.
ii. Life of tubes!
iii. Drip tape causes extra clean up costs after harvest.
iv. In lighter soils subsurface drip may be unable to wet the soil surface for germination.
5. Sprinklers
a. In the sprinkler method of irrigation, water is sprayed into the air and allowed to fall on the ground surface
somewhat resembling rainfall. The spray is developed by the flow of water under pressure through small
orifices or nozzles.
b. Haryana and Rajasthan + MP, WB, Assam,
c. Advantages:
i. Very suitable method for irrigation on uneven lands and on shallow soils.
ii. No conveyance losses
iii. Suitable to all types of soil except heavy clay
iv. Possibility of using soluble fertilisers and chemicals ~ Fertigation.
v. Less problem of clogging of sprinkler nozzles due to sediment laden water.
vi. The overall cost of labour is generally reduced.
d. Disadvantages:
i. Higher initial cost.
ii. High and continuous energy requirement for operation.
iii. Under high wind condition and high temperature distribution and application efficiency is poor.
iv. Highly saline water causes leaf burning when temperature higher than 95 F.
v. Loss of water due to evaporation from the area during irrigation.
6. Fertigation:
a. Soluble fertilisers at concentrations required by crops are applied through the irrigation system to the wetted
volume of the soil.
b. Possible disadvantages include the non-uniform chemical distribution when irrigation design or operation are
inadequate,
c. Over- fertilisation in case that irrigation is not based on actual crop requirements and the excessive use of soluble
fertilisers.

Efficient Water Management Practices:

1. Laser Land Levelling — Proper land levelling


2. Irrigation Scheduling — When and How much?
3. Methods of Irrigation — Selection of right method influenced by soil type, land topography, crops to be grown.
4. Agronomic Practices — Agronomic practices, such as soil management, fertiliser application, and disease and
pest control. Practices such as
i. Mulching
ii. Counter and Conservation tillage
iii. Weed Control
iv. Pest management.
5. Use of Technology — An Italian startup, Blue Tentacles uses AI to take note of humidity, temperature, climate data
to help farmers improve their irrigation practices improving efficiency
6. Crop Planning — Crop planning should be based on local climatic conditions, water availability and overall demand-
supply situation
a. Rice and Sugar consume 60% of Water use in Agriculture.
7. Rainwater harvesting
8. Watershed Management (National Watershed Management — PYQ)
9. Better Allocation of water as resource — Proper pricing of water.

Schemes:

1. PM-KSY
a. The scheme envisages duel aim of ‘Har Khet Ko Pani’ and improving water use efficiency ‘More crop per drop’
in a focused manner.
b. Under Accelerated Irrigation Benefits Programme (AIBP) - 99 prioritised projects

c.
d. The major objective of the PMKSY has been to
i. Achieve convergence of investments in irrigation
ii. Expand cultivable area under assured irrigation
iii. Improve on-farm water use efficiency to reduce wastage
iv. Enhance
JAL JEEVAN MISSION URBANthe adoption of precision-irrigation
2. Jal Shakti Abhiyan
● Jal Jeevan Mission (Urban) was announced by Ministry of Housing and Urban Affairs in Union Budget 2021-22.
a. Abhiyaan aims to focus on integrated demand and supply management of water at the local level, including
i. Creation of local infrastructure for rainwater harvesting,
ii. Groundwater recharge
iii. Management of household wastewater for reuse.
3. All India Coordinated Research Project on Water Management Institute.
4. Neeranchal (WB)

Need: Features:

● Only 40% households have piped water ● Central Sector Scheme


connections ● Outcome based Funding in three tranches of
● Water Scarcity: NITI — Currently, 600 million 20:40:40
Indians face high to extreme water stress ● PPP Model mandatory fo big cities upto 10% of
● About 2 lakh people die every year due to Toal project fund allocation
inadequate access to safe water. ● Strengthening urban local bodies by reducing
● CGWB: Excessive extraction, failed monsoons, non- revenue water to below 20%
and unplanned development. ● Pey Jal Survekshan survey to ascertain
● Poor water quality: failed to comply by BIS equitable distribution of water, reuse of
● Falling ground water level: 60% in last decade wastewater and mapping of water bodies

● Water borne diseases: Annually about 37.7 ● Raising funds through issuance of municipal

million Indians are affected by waterborne bonds.


disease ● Global Technologies
● Awareness
● In long run extend this scheme to all AMRUT
cities

Jal Jeevan Mission:

● 32.3% coverage of tap connections in rural India.


● 19 crore rural households to get tap water by 2024

PM FASAL BIMA YOJNA (2016) — 5 Years completed

● PMFBY is a Central Government’s flagship crop insurance scheme launched in 2016


● It aims to provide insurance and financial support to farmers in the event of crop failure and targets to bring 50 per cent
of cultivated area.
● Why?
○ Stabilise farmer’s income,
○ Ensure the flow of credit and
○ Encourage farmers to innovate and use
○ Modern agricultural practices.

Features: Achievements:

● Coverage: All farmers growing notified crops in ● Average sum insured per hectare has
a notified area are eligible. increased from Rs 15K during the pre-PMFBY
● Coverage of Crops: major crops of Rabi and schemes to Rs 40K under PMFBY.
Kharif ● Covers over 5.5 crore farmer
● Minimum Premium Rates for farmers ● Speedy claim settlement directly into the farmer
supplemented by the state and centre in equal accounts through Aadhar linkage.
proportion. ● Flexibility to states to rationalise the scheme
● Area-based Insurance Unit
● Holistic Coverage of Risks: — Pre, During, Post
● Using drones to estimate crop loss; and using
mobile phones to reduce delays in claim
settlements.
● Cluster Approach for Insurance Companies

Issues: Way Forward:

1. Lack of farmer awareness: CAG: Only 37% ● Strict compliance with timelines for claim
were aware of the schemes and knew the rates settlement — 45 Days.
etc. ● Ensuring inclusivity: Women, tenant,
2. Exclusion of farmers who grow non-notified sharecroppers •
crops. ● Technology: Remote-sensing, drones, satellite
3. No provision for farmer’s revenue protection: and digitisation of land records
Being only a yield-protection insurance ● Competitive Pricing: The provision of at least
4. Lack of trained professionals to estimate crop two insurance companies in a cluster of villages
loss ● Increasing penetration of crop insurance:
5. Low participation of tenant farmers and Mandatory awareness programmes on the
sharecroppers due to non-uniform land lease benefits of crop insurance must be developed.
policies Eg. WB
6. Lack of competition amongst insurance ● Linking crop insurance with climatic changes
companies as sectors are divided between ● Offering insurance as priority insurance on the
them lines of priority sector lending can increase
7. Delays in claim settlement: insurance claims penetration.
worth ₹25.11 billion had been due from more
than 1 year.
8. Impact on state finances: High burden has led
to exit of state governments from PMFBY. For
eg, Bihar, WB.
9. Skewed pattern of benefit ratio

ACCELERATED IRRIGATION BENEFITS PROGRAMME (AIBP)

● 1996-97 to provide Central Assistance to major/medium irrigation projects in the country. Now part of PMKSY.
● It is being implemented by Ministry of Jal Shakti.
● Public Accounts Committee submitted its report on the Accelerated Irrigation Benefits Programme (AIBP).

Problems: WF:

1. Frequent change in design 1. Comprehensive revision of the guidelines with timelines


and scope of work 2. The deficiencies in preparing of DPRs such as delays, inadequate
2. Violation of guidelines surveys, and inaccurate assessment of command area should be
3. Non/short release of funds, rectified
delay in release of funds 3. Strict actions on instances of short/non-realisation of revenue.
4. Deficiencies in monitoring 4. Financial and social audits
5. Improving monitoring of the scheme: Satellite imagery and field
reports
Transport of Agricultural produce
The pattern of agricultural marketing is strongly influenced by the nature of transport services. Infrequent transport services
will put farmers at disadvantage when they attempt to sell their crops which will naturally lead to low farm gate prices.

Transportation Problems and Road Network

● Bad roads,
● High cost of transportation,
● Irregularity of vehicles,
● Insufficiency of vehicles and means of transportation and
● Long distance from farm to their houses as well as markets.

The impacts of bad road infrastructure on agricultural output and productivity are following: -

● High transaction costs for sales of agricultural inputs and outputs, this limits agricultural productivity and growth.
● Expense of transport significantly reduces the returns to labour.
● Extension information and inputs do not reach the farmers.
○ CSDS — 70% farmers do not get information regarding schemes and benefits provided by Govt.
● A strong relationship between road transportation, underdevelopment and rurality has been identified by various
researches.
● Perishable crops may be destroyed and farmers may run at a loss.

Problems of Road Transport in India

1. Most of the Indian roads are unsurfaced (42.65%) and are not suitable for use of vehicular traffic.
2. There is heavy tax burden on motor transport in India. There are multiple check-posts, toll tax.
3. Way side amenities like repair shops, first aid centers, telephones, clean toilets are lacking along the Indian roads.
4. Due to high prices of petroleum products and diesel
5. Most of the drivers on the roads are unskilled and untrained.
6. One major problem on the Indian roads is the mixing of traffic. Same road is used by high speed cars, trucks, two
wheelers, tractors, animal driven carts, cyclists and even by animals.
7. In India, roads are not well-maintained as there are no timely repairs. It causes discomfort and quick depreciation of
vehicles.

Measures Taken for Improving Rural Road Infrastructure by Government

1. Pradhan Mantri Gram Sadak Yojana (PMGSY) (2000) as a fully funded Centrally Sponsored Scheme to provide all
weather road connectivity in rural areas of the country.
2. The District Rural Roads Plans (DRRPs) have been developed for all the districts of the country and Core Network
has been drawn out of the DRRP to provide for at least a single connectivity to every target habitation.
3. The Central Government has created a dedicated fund, called Central Road Fund through collection of cess from
petrol and diesel.
4. Special construction technology to tackle the construction of roads in the hilly regions would be adopted to ensure
quality roads within a specific time frame.
5. Promoting participation of private operators on non viable semi urban/rural routes through favourable policy regime.
This could be achieved through following options:-

Way Forward: →
1. Land consolidation work can be taken up simultaneously to planning.
2. The road construction work can be taken up in lean farming period for employment and labour.
3. Minimum percentage of land revenue should be earmarked for rural roads
4. Village Panchayats can also collect a type of ‘Road Tax’ from the vehicles in the village. The rates could be different
for different types of vehicles.
5. Banks can also be asked to liberalise their policy and should consider advancing loans to villages at nominal interest for
construction of rural roads.
6. Industrial houses, commercial undertakings, banks etc. can also be asked to adopt villages for upliftment.

Conclusion: →

Transport plays a significant role in the structure of food production and marketing and that easy transport to market can make
all the difference in the level of rural incomes.

Marketing of Agricultural produce


● The National Commission on Agriculture defined agricultural marketing as a process involving sale of farm
commodity involving of three important functions, namely (a) assembling (b) processing (c) distribution.

Objectives of efficient marketing system:

● To reduce the price difference between the primary producer and ultimate consumer
● To provide facilities for lifting produce
● To make available all products of farm origin to consumers at reasonable price without impairing on the quality

Facilities Needed for Farmer in Marketing

● Number of intermediaries should be as small as possible


● Holding capacity
● Facilities for storing his goods
● Adequate and cheap transport facilities
● Information regarding the market conditions.

Existing Systems of Agricultural Marketing in India-

● Sale to moneylenders and traders


● Hats
● Mandies or wholesale markets
● Co-operative marketing

Impact of Globalization: Contract Marketing

The potential benefits of the contract marketing are: →

● Producers can reduce the market risk,


● Post harvest losses can be reduced,
● Technology can be transferred to the producers,
● Contract serve as a security for increased access to credit by both producers and processors,
● Contract may create a greater sense of common interest among the producers and induce greater involvement in group
activities etc.
Common problems may be: →

● Volatility in market price,


● There is risk that the processors may manipulate the quality standards,
● Coordination problems may be there regarding delivery of inputs or produce,
● Processors may lack the competence or capacity to deliver the require technical assistance.
● Producers may become tied to a contract relationship by virtue of debt, specialization, or the disappearance of
other markets and may be unable to adjust their production activities to changing conditions etc.

Government Measures to Improve Agricultural Marketing

● Grading and Standardization: - Under the Agricultural Produce (Grading and Marketing) Act the Government has
set up grading stations for commodities like ghee, flour, eggs, etc. The graded goods are stamped with the seal of the
Agricultural Marketing Department - AGMARK. The "Agmark" goods have a wider market and command better prices.
● Marketing Research & Information Network: - This Central Sector Scheme was sanctioned by the Ministry Of
Agriculture in 2000.
● AgmarkNet: - Agricultural Marketing ‘AgmarkNet’ is a unique live portal on agricultural commodities anywhere in the
world.
○ National Agricultural Market Atlas (NAMA): - It is an offshoot of the AGMARKNET with an additional
component of spatial data.
● Central Warehousing Corporation: - with the purpose of constructing and running godowns and warehouses for the
storage of agricultural produce.
● Directorate of Marketing and Inspection
○ Promotion of grading and standardization of agricultural and allied commodities;
○ Statutory regulation of markets and market practices;
○ Market extension;
● Government Purchases and Fixation of Support Prices

Problems in Agricultural Marketing

1. Improper warehouses: - Unscientific methods of storing lead to considerable wastage. Approximately 1.5% of the
produce gets rotten and becomes unfit for human consumption.
2. Lack of grading and standardisation
3. Inadequate transport facilities
4. Presence of a large number of middlemen
5. Malpractices in unregulated markets
6. Inadequate market information
7. Technological development problems in farm production
8. Lack of farmer's organisation
9. Problems caused by Globalization: threats like uncertainty, turbulence, competitiveness, apart from compelling
them to adapt to changes arising out of technologies.

Suggestions to Improve Agricultural Marketing

1. Establishment of More Regulated Markets


2. Improvement in Standardisation and Grading
3. Improvement in Handling and Packing
4. Provision of Storage Facilities
5. Improvement in Transport Facilities
6. Market Information and Market Research
7. Promoting Cooperative Marketing:
8. Provisions for Cold Storage Facilities and Refrigerated Transport
Conclusion

In order to avoid isolation of small-scale farmers from the benefits of agricultural produce they need to be integrated and
informed with the market.

AGRI EXPORTS

● Agri-exports touched $41.8 billion in FY 2020-


21, registering a growth of 18 per cent over the
previous year
● Export basket is only 2.5% of world’s
agricultural trade.
● Agriculture Export Policy 2018 sets out a target
of US$ 60+ Billion by 2022, for agricultural
exports, and US$ 100 Billion in the next few
years.

High-Level Expert Group (HLEG) on Agricultural


Exports — 15th FC

1. Crop value chains: Focus on 22 crop value


chains with demand driven approach
2. Target markets for export
3. Creating State-led Export Plan
4. Private investment
5. Institutional mechanism to fund.
Challenges: WF:

1. Utilising trade policy as an instrument to tame 1. Stable trade policy


inflation 2. Infra - Cold Storage
2. Infra 3. Logistics - Transport linkages esp. for
3. Logistics landlocked states
4. Low Horticulture — Small land holding 4. Greater involvement of State “State Export
5. Poor training and skill development Policy”
6. 15th FC: Low yields & farm productivity; low 5. Clusters — 1 District, 1 Product
focus on value addition; and domestic market 6. Brand India — GI etc
7. Food Processing

E-technology in the aid of farmers


New technologies are the basic raw material for productivity improvement

E-Agriculture is an emerging field for enhancing sustainable agriculture and food security through improved processes
for knowledge access and exchange using information and communication technologies (ICT).

Ways IT can help in Agriculture:

1. Precision farming
a. Soil Sciences
b. Remote Sensing Satellites
c. Geographical information systems
2. E-commerce for direct linkages between local producers, traders, retailers and suppliers;
a. ICT for integrating farms with Industries.
b. Online Bidding and Sell of Produce with one click.
3. Facilitation of interaction among researchers, extension (knowledge) workers, and farmers.
4. Creation of databases and increased efficiency and productivity of cooperative societies.
a. Database drives decision making - Economic Survey 2018-19
5. Provision of early warning systems about disease/pest problems, information regarding rural development
programmes and crop insurances, post-harvest technology, etc.
6. Facilitation of land records and online registration services.
7. Quality information = Informed Choice - Monsoon Forecast etc... Internet for dissemination of Information ~ Awareness.

ICT Initiatives for Agricultural Development in India by Various Agencies:

● e-NAM
● Satellite technology: ISRO — HySYS for hyperspectral imaging of earth’s surface to be used in agriculture + other
sectors
● Soil Health Card
● Gyandoot project (Madhya Pradesh) is a rural infokiosk-based e-governance service delivery model.
● Automated Milk Collection Centres of Amul dairy cooperatives (Gujarat);
● Land Record Computerisation (Bhoomi) (Karnataka);
Case Studies

1. Agropedia by ICAR is a peer-group tool for interaction among the farmers.


2. e-choupal — Initiative of ITC, aims at bringing out the Indian farmers from vicious circle of low risk taking ability and
promote vertical integration.
3. AgmarkNet to promote a culture of good agricultural marketing practices.
4. eMojani to apply online for his request for measuring his land.
5. Kisan Call Centers
6. GramSampark (MP)
7. Unified National Market — E-NAM
8. M-Kisan SMS Portal for advices - 38 Cr mobiles in rural areas
9. Soil Health Card
10. Kisan Credit Card

Constraints and Remedies for Effective Dissemination

1. Haphazard development: Duplication of efforts are witnessed as most of the services revolve around limited subjects
+ Lack of coordination mechanism
2. Digital Literacy - Education
3. User friendliness
4. Awareness about the Benefits of ICT
5. Local languages
6. Power Supply + Electricity
7. Connectivity
8. Red Tapism
9. NSSO: >50% don't use APMC to sell their produce.

Way Forward:

1. Simplification of WTO Rules for farmers to understand it.


2. Monitoring Int. Shocks and notifying Farmers about it
3. Language constrain - PMSTAIC (Natural Language Processing)
4. Agriculture is State Subject.
5. Peripheral requirements — rural infrastructure like roads, warehouses and cold storage

Conclusion

The Indian farmer and those who are working for their welfare need to be e-powered to tackle challenges that Agriculture
sector is facing. Once these dissemination points prove to be economically viable, the IT revolution in rural India will require no
crusaders.

Use of Tech in Agriculture:

1. IoT — It is estimated that the IoT has the potential to increase agricultural productivity by 70% by 2050.
2. AI — Determine which crops to grow and anticipate potential threats by combining historical information about weather
patterns and crop performance with real-time data.
3. Big Data — Eco Survey 2019-20
4. Robotics — Drones - Agri-Bots with AI-enabled vision processing capabilities are being used to assess the real situation
on the condition of crops on ground
5. Autonomous Swarm robotics and Blockchain, pesticide and fertiliser can be applied more sparingly with individual
attention to each plant
6. Nano technology in Agriculture — Recently centre has released ‘Guidelines for Evaluation of Nano-based Agri-
input and food products’ in India.
i. Reduce nutrient run off
ii. Increase productivity
iii. Increase soil fertility
iv. Sustainable agriculture.
7. Agri Stack — collection of technologies and digital databases proposed by the Union government that focuses on
farmers and the agricultural sector.

Direct & Indirect farm subsidies


● Subsides are transfer payments to consumer and producer made by Government.
○ The economic rationale of subsidies lies in incentivising the producers to invest in productive activities and
increase production leading to high growth in national income.
○ The social justification of subsidies lies in reducing inter-personal income inequalities and inter-regional
development imbalances.
● Two Ways:
○ Indirect: “In Kind” - PDS
○ Direct subsidies: Direct cash incentives are paid to the farmers (USA and Europe).
○ Indirect farm subsidies: In the form of cheaper credit facilities, farm loan waivers, reduction in irrigation and
electricity bills, fertilisers, seeds and pesticides subsidy as well as the investments in agricultural research,
environmental assistance, farmer training, etc.
● Concerns with subsides —
○ Promotes Monoculture distorting natural cropping pattern — wheat-paddy crop rotation in Punjab
○ Distortion of Market equilibrium and possible wastage
○ Declining Fertility due to tendency to overuse of fertilisers. Eg. Urea which - environmental
consequences
■ Fertiliser subsidies can also be made through direct income support!
○ Fiscal burden leading to decrease in investment and high inflation
■ Revisit Food subsidy (Rs 1,84,220 crore) [Budget 2019-20].
○ Subsidies means Short term growth is being preferred instead of long term growth
○ Declining water table: Cheap electricity has led to excessive underground water withdrawal and
falling water table.
■ Example - Sugarcane cultivation in dry areas of Marathwada and Vidarbha based on groundwater.
○ Diversion and thus misuse of subsidy for non-agriculture use.
○ Indirect subsidy has been blamed for benefiting big farmers more than the small and medium farmers, for
whom the subsidy is intended
○ WTO issue.
● Desirable:
○ Help the poor consumers who lack capacity to purchase basic minimum requirements
○ Needed to achieve Food Security - both availability (MSP) and affordability (PDS)
○ Help the poor producers like Farmers who undertake risky economic activities
■ Without subsidy agriculture won’t remain remunerative which can hurt food security
○ Crop selection: Government can encourage any crop by providing subsidy on seeds, fertilizer,
electricity etc. and can discourage by stopping subsidy. Increase in production of food grain and
decrease in cultivation of tobacco, indigo, poppy are largely the result of government policy.
Direct Subsides:

Benefits of Direct Subsides: Challenges with Direct Subsides:

1. Less Prone to Corruption as number of 1. Lack of Financial Inclusion


middlemen between beneficiary and 2. Lack of Unique identification of
government reduces. Beneficiaries
2. Less Gov Burden a. Leads to poor targeting
a. In Indirect extra cost such as 3. Infrastructure for Aadhar is absent in rural
i. Administrative Cost areas
ii. Supervision Cost 4. Direct Subsides are not insulated from
iii. Transporting/Storing inflation calculation.

3. More freedom to choose 5. Multiplicity of Bank Accounts as seen in Airtel


Payments Wallet case
a. Indirect Subsides restricts freedom.
Conclusion:

1. Transition should be gradual. Infrastructure should be developed. Pilot testing.


2. Proper and timely evaluation of performance of Direct subsidies
3. Proceed with less important first and then move for important ones like PDS
4. Solve the logistical issues encountered like
a. Aadhar: Fertiliser subsidy finger print problem
b. PDS: Food grain not given due to no linkages → MINIMISE EXCLUSION ERRORS

Economic Survey 2014-15: “Eliminating or phasing down subsidies is neither feasible nor desirable unless accompanied by
other forms of support. JAM Number Trinity – Jan Dhan Yojana, Aadhaar and Mobile numbers – allows the state to offer
this support to poor households in a targeted and less distortive way..”

Indirect Subsides:

1. Fertiliser: 10% of the total agricultural GDP. Nutrient based subsidy (NBS) scheme for P and K fertiliser.
2. Power: Government charges low rates for the electricity supplied to the farmers.
3. Irrigation subsidy is the difference between operating and maintenance cost of irrigation infrastructure.
4. High yielding seeds can be provided by the government at low prices.
5. Credit: It is the difference between the interest charged from farmers, and actual cost of providing credit, plus other
costs such as write-offs bad loans.
6. Insurance cover for farmers is also provided at lower premium rate. Cheap credit is also provided for procuring
agricultural machineries.

ENVIRONMENTAL IMPACT OF AGRICULTURAL SUBSIDIES

Way Forward:
● Boom in fertilizer industry: Wastewater
generated at urea plants contains nitrogen, and ● Sustainable policies: take into account local
cyanides environmental conditions.
● Overuse of fertilizer: This leads to declining soil ● Rationalization of fertiliser subsidies: better to
productivity, and soil alkalinity and salinity. give farmers input subsidy in cash on per
○ Atmospheric nitrogen: Use efficiency is hectare basis.
below 35% contributing to (GHGs), ● Fertilizer sector in India: NOx control in stack,
Photochemical smog and ground-level ammonia emissions curtailment, and advanced
ozone. water treatment.
○ Nutrient Runoff to groundwater over ● Promoting crop diversification such as multi
time. cropping
■ Can cause eutrophication and ● Shifting from input subsidies to investment
hypoxia (“dead zones”), causing subsidies
fish kills. ● Rationalising power subsidies to prompt
● Depletion of groundwater: Level in India has efficient use
declined by 61% between 2007 and 2017 ● Adopting Nutrient Management Techniques
● Intensification and Extensification of Agricultural ● Regulation of groundwater extraction
Production: Mono-cropping, rigorous use of
inputs, such as fertilisers and pesticides.
● Wastage of resources: Excess stocks of
foodgrains procured by Food Corporation of
India (FCI).
● Extensive paddy cultivation: Open-ended
procurement of paddy, high MSPs and
subsidized power water

DBT vs PDS

● Direct Benefit Transfer (DBT) over PDS.


○ Why?

i. Reduced Movement of physical food movement. Will save a lot of money for Gov. (1.5 L Cr.)
ii. Inter-state and Intra-state variations of Staple food.
iii. Greater Autonomy to beneficiaries.
iv. Greater dietary enhancements.

○ Why not?

i. Inadequacy of transf­ers to maintain pre­DBT con­sumption levels.


ii. No Grievance addressable mechanism.
iii. Doesn't ensure last mile coverage

□ For ex. UT - Puducherry decided to shift back to old PDS from DBT as poor were finding it
difficult to find rice for consumption.
○ Way Forward: -

a. Complete digitisation - Seeding of Bank account details and Aadhaar number


b. De-­d uplication of the be­n eficiary database.

Food Security
https://www.thehindu.com/opinion/op-ed/the-long-road-to-food-security/article33349977.ece

● FAO: There are three pillars to Food Security ( 🔺)


○ Physical → Availability = PDS
○ Economic → Affordability = CIP - Central Issue Price (2nd Pillar)
○ Social → Accessibility (3rd Pillar)
● Article 21, Article 47. PDS & NFSA.
● Food grains output in 2018-19 was 285 million tonnes
● Global Hunger Index and MoSPI + WFP Data on Malnourishment.
● Number of hungry peo­p le in the world has risen for the first time in more than a decade, according to UN report
○ According to UN’s SDG 2018 report, conflict is now one of the main drivers of food insecurity in 18 coun­tries.
(Ex. Yemen Crisis).
○ Con­fl ict, Drought and Disasters linked to climate change are among the key factors caus­ing this reversal in
progress.
● Economic Survey 2019-20 — Government intervention: When it hurts more than it helps
○ Government policies in the food grain markets has been adversely affecting competition in these markets. This
has led to overflowing of buffer stocks with FCI, burgeoning food subsidy burden, divergence between
demand and supply of cereals and acted as a disincentive towards crop diversification.
On Food Security — M S Swaminathan

● Dimensions of Food Security — Food security exists when all people, at all times, have physical and economic access to
sufficient, safe and nutritious food that meets their dietary needs and food preferences to ensure an active and healthy
life.

1. Availability of food which is a function of level of Food production - this is largely catered to due to Green revolution yet
the infrastructure to store the grains especially the perishable goods is missing.
a. India produces more than the estimated amount required to feed the entire population (in 2018-19, India
produced 283.37 million tons of food grains).
2. Access to food, which is a function of purchasing power. National Food Security Act (NFSA) and the PDS, has assured
some additional food to every individual. We can widen the food basket and make it more inclusive.
3. Affordability

○ A globally coordinated and coherent response is needed to prevent this public health crisis from triggering a food
crisis in which people cannot find or afford food.
○ Other Problems:
■ Restrictions of movement, as well as basic aversion behaviour by workers, may impede farmers from
farming and food processors (who handle most agricultural products) from processing.
■ Shortage of fertilizers, veterinary medicines and other input could also affect agricultural production.
■ Closures of restaurants and less frequent grocery shopping diminish demand for fresh produce.

Steps: →

1. PDS
2. ICDS
a. Centrally Sponsored Scheme - 1975.
b. 6 basic services for children up to 6 years of age and for pregnant and lactating mothers.
3. Mid Day Meals
a. 1995 - Central Scheme for School attendance and nutrition at the same time.
4. NFSA, 2013 (PYQ)

Framework:

1. Production of Food Grains


2. Procurement by FCI @MSP
3. Storage of Food Grains
4. Sale of Food Grains to States @CIP
5. PDS outlets
6. Distribution of Food Grains to consumers.

Food Subsidy = (MSP - CIP) + Transportation/Storage/Handling/Wage!

Problems due to Food Insecurity:

1. Food insecurity affects children’s learning


2. Contribution of an individual to National growth is hampered.
3. Cost of healthcare increases.
MSP
● https://www.thehindu.com/opinion/lead/msp-the-factoids-versus-the-facts/article33367929.ece
● https://www.thehindu.com/news/national/explained-what-will-a-legal-guarantee-of-msp-involve/article37730052.ece

1. Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price
for the crops. It is important part of India’s agricultural price policy as it helps to incentivise the framers and thus
ensures adequate food grains production in the country.
2. Under the MSP policy, the government fixes the rates for 23 notified crops grown in kharif and rabi seasons.
3. FCI is the government’s nodal agency for procurement and distribution of foodgrains, procures wheat and rice at MSP
for supply through ration shops and welfare schemes.
4. The centre also implements Market Intervention Scheme (MIS) for procurement of those commodities, which are
perishable in nature and are not covered under the MSP policy.

CACP → Commission of
Agriculture Cost and prices under
Ministry of Agriculture and
Family welfare. It is a
decentralised agency.

Currently it is 58% higher than


current buffer stock norms.

Till 1997 - Announced MSP =


Recommended MSP

Post 1997 - Announced MSP


> Recommended MSP.

Impacts of high MSP: → Reforms in MSP procurement:

1. Significant increase in Food Subsidy 1. Higher MSP for other crops than wheat and
2. Higher Food inflation because of lower rice like Pulses and oilseeds
market availability a. Nutritional Security
3. Lower Agricultural exports b. Reduces dependency on edible oil
4. Distorted cropping patterns imports

5. Wastage of food grains! 2. Adequate procurement of the crops at MSP

a. Lack of storage a. Less procurement = Loss to farmers

b. Lack of open procurement b. High procurement = Loss to Consumers

6. Poor targeting of MSP policies! 3. Decentralising procurement - State Gov are


closer
a. Benefits to few states
a. Lower transport cost
b. Benefits to few large farmers
b. Better storage (Less wastage)
Challenges:
c. Food Security with Nutrition Security
1. Heavy Fiscal Burden. (Rs. 70,000 in 2017-18)
2. Excessive Groundwater usage. 4. FCI Reforms (Shantakumar Committee) 👇🏻
3. Environmental Effects and decline in Soil 5. Price Deficiency Payment - Direct Subsidy!
Fertility a. No procurement
4. Cereal Centric — Rice and Wheat b. WTO Compliant
a. Procurement of oilseeds remained at low c. Good for Non staple food!
0.66% of the total production. 6. Other Direct Income Support to farmers
5. Regionally Biased - Limited reach of a. PM Kisan, KALIA, Rythu Bandhu (Green
procurement: For Wheat 90% procurement is Box)
accounted only from Punjab, Haryana and
7. Ashok Dalwai Committee: —
Madhya Pradesh.
a. Develop more tools for procurement
6. Less benefits to the targeted groups
across geography.
7. Poor operation of the Price Support Scheme:
b. Timely market interventions to normalise
Total procurement of pulses is at 10% only —
the fluctuations in market prices
of the marketed surplus.
c. Increasing diversification in procurement
8. Procurement of perishables under MIS is still
negligible.
9. Shift in production and consumption patterns:
The price and procurement-based
interventions have contributed towards higher
supply and a supply driven shift towards rice-
wheat consumption and cropping.
a. The unseen consequence of this
calorie-dominant food security
approach has been nutritional
deficiency.

PDS
● https://www.thehindu.com/opinion/op-ed/a-case-for-a-revamped-need-based-pds/article34039080.ece
● https://www.thehindu.com/opinion/lead/reimagining-food-systems-with-lessons-from-india/article36813294.ece

OBJECTIVES OF PDS

1. Food security: Providing food grains and other essential items to vulnerable sections of the society at reasonable
(subsidised) prices.
2. Price control and prevent hoarding: To put an indirect check on the open market prices of various items and essential
commodities.
3. Equitable distribution: attempt at ensuring equity through distribution of food to the deprived.
4. Supplement resources
Timeline:

● Pre - 1997 - Universal PDS


● Post 1997 - Targeted PDS (APL - Economic Cost and BPL - 50% of EC)
○ Avg. CIP fell contrary to expectations as APL withdrew and storage increased!
○ Those earning a maximum of Rs. 15,000 per annum are kept within BPL.
● 2001: Antyodaya Anna Yojana → More and cheaper grain avg. to poorest of the poor CIP fell again.
○ AAY covers 2.5 crore poorest of the poor people.

NATIONAL FOOD SECURITY ACT (NFSA), 2013

● 2013: NFSA — 1. Legal Right & 2. Nutrition related schemes for children and pregnant women.

i. Eligible households (Priority + Antyodaya) = Selected through SECC


ii. 75% Rural and 50% Urban
iii. Total population covered should be 67.5%.
iv. Individual Entitlement
v. State Food Commission!
vi. Very low CIP!

○ Analysis of NFSA
■ Higher Coverage: Food Subsidy may increase but food wastage will definitely go down.
■ Lower exclusion error (thus higher inclusion error)
■ Most successful states have universal PDS (Tamil Nadu)
■ Lower CIP = 1. Increase FS + 2. More PDS leakages.
○ Problems:
■ CIP (Central Issue Price) has remained unchanged since 2013 — This needs to be revised as this will
distort market prices.
■ Rising food subsidy bill — Fiscal Deficit
■ Leakages — Acc. to NSSO, 43% of PDS allotment never reaches beneficiaries.
□ Black Marketing + other Malpractices
■ Fake Ration cards. Inclusion and Exclusion errors
■ Migrants labourers can not access PDS in other states.
■ Poor Quality of grains - PDS distributor.
■ Over 10 crore people have been excluded from the Public Distribution System because outdated
2011 census data
■ Freedom of Choice
○ Way Forward:
■ NFSA needs to be restricted to the bottom 20% and the CIP for others could be linked to the procurement
prices.
■ DBT to end leakages
■ Independent evaluation of the Act
■ Better management of surplus stock without creating any market distortion.
□ “Price deficiency” payment scheme (Bhavantar)
■ FCI should actively participate in the commodity exchange as a seller for wheat and rice. This will increase
the liquidity in the market and reduce market distortions.

● Reforms:

1. Lower PDS leakages →


a. Better Governance - Monitoring
b. Better Technology - GPS, Communication Services, Computerisation
c. Chhattisgarh = ~0% leakages, TN: Very less leakages
2. Reducing fake ration cards
a. Usage of Bar Codes + Linkage with Aadhar Card (Challenge = Lack of Infra)
3. Management of PDS outlets — Community based management (TN, 36) or Gram Panchayat led (Orissa)
4. DBT in PDS! (Direct & Indirect farm subsidies)
a. DBT should be food inflation adjusted.
5. FCI reforms - Shanta Kumar.
6. States should be encouraged to procure for PDS directly from the farmers.
7. Update the list of beneficiaries with greater frequency and not relying on Census to Census update.

Justice Wadhwa Committee — “End to End


Automation” for ending leakages in PDS
● PM - AASHA (September 2018) → The PM­AASHA or Prad­han Mantri Annadata Aay Sanrakshan Abhiyan is an effort to
ensure that farm­ers growing pulses, oilseeds and copra actually get the minimum support prices they are promised for
their crops each year by way of direct procurement or by private player.
○ Govt. procured only 3% of pulses, oilseeds proposed for 2019 season. PM-AASHA target was 37.59 lakh
metric tonnes; just 1.08 lakh tonnes purchased.

Buffer Stocks

● A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling
below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target
range (or price level). So, it neutralizes the fluctuation in production of a given crop, so that the prices may remain
stable.
○ Concept was introduced in the fourth five year plan (1969-74).
○ Buffer norms are fixed by CCEA
○ Operational stock = Stocks earmarked for TPDS/OWS and Food security stocks/reserves.

FCI

● The current food grain storage capacity in the country is 88 million tonnes (MT).

Note: —

● Ashok Dalwai committee report: —


○ Investment of Rs 89,375 crore—a figure marginally lower than the annual post-harvest losses—is needed
for proper storage.
○ Preparing a district and state-wise storage plan to ensure efficient spatial distribution
○ Promotion of the system of warehousing and eNWRs.
○ Increase accreditation of cold storage.

Critical Evaluation:

1. Open-ended procurement
2. One tool serving many objectives - Food Security, Supporting consumers and producers, Price volatility etc.
3. Inefficient Inventory management: absence of clear targets for the stock level.
a. Rice stocks with government agencies touched about 37 MMT on January 1, as against a buffer norm of
only 7.6 MMT for that date
4. Rising cost of Operation [Loss = Economic Cost - Central Issue Price (CIP)]
5. De-facto nationalisation of the grain market.
6. Increasing gap between per capita production ( ⬆29%) and per capita availability (⬇1%).
7. Storage: — 80% handling is unscientific.

Shanta Kumar committee recommendation on Food Corporation of India: →

1. Procurement:
a. Outsource Procurement in good states.
b. Per hectare cash to farmer. No more open ended procurement
c. Stringent quality check
2. Storage:
a. Outsource storage to pvt co
b. Automatic liquidation of excess buffer stock in open market
c. Strategic buffer reserve
d. Silos instead of godown
3. Transport:
a. Container instead of gunny bag
b. Inland waterway
4. Distribution:
a. 6 month ration at once
b. Direct cash to lady of house
c. In National food security Act, cover only 40% instead of 67%.

○ As of April 13, 2020, the FCI had already moved 3 million tonnes (post-lockdown), to States.

Technological Mission
WF: — Focus on SUSTAINABLE FOOD SYSTEMS

VV - Technology Missions.pdf


History of Agricultural Research —

1. 1869 — Lord Mayo created Department of Agriculture.


2. 1905 — Lord Curzon — Imperial Agricultural Research Institute, Pusa, Bihar
3. 1926 — Royal Commissioin of Agriculture suggested Imperial Council of Agri research to promote, guide and co-
ordinate Agricultural research.
4. 1929 — ICAR was born. Apex Agricultural research institute.
5. Post 1947 — Rainfed Agricultural dominated the R&D scenario — Cotton, Oilssed and Millets under All India Co-
ordinated research project.
6. 1960s — Green revolution. HYVs seed R&D in India was initiated. Rice research initiated.
7. 1970s — Crop improvement programme — Krishi Vikas Kendra
8. 1980s — Development of efficient seed system and inclusion of Pvt sector. Technology Mission of Oilseeds.
9. 1990s —
Every Rupee spend on Agri R&D yields ₹11 in Return.
GM - CROPS

Introduction: WHO, GMOs are organisms in which the genetic material (DNA) has been altered in a way that does not occur
naturally by mating and/or natural recombination. India has the world’s fourth largest GM crop acreage

Steps Taken: (in general for GM


crops)

1. 1989 - GEAC - MoEF&CC


responsible for GM crops
2. BT cotton: only
commercially allowed GM
crop: 2002
3. FSSA Act, 2006 mandates
prior permission of FSSAI
for import and
manufacture of GM foods.
4. Field trials for 21 GM food
crops approved Eg. Brinjal
5. Labelling of imported GM
foods
6. GM Org: EPA, GEAC
Permission
7. India is net importer of
oilseeds. (≥ $10 Bn)

Issues: Way Forward:

● Affects human health — Glyphosate - Cancer 1. GEAC: More tests before commercialisation
● Environmental risks: reduction in biodiversity 2. Parliamentary Committee - 2017 on GM Crops
● Developing resistance to toxins of GM crops a. More India Specific scientific study.
● Mono-culture: Eg. Bt cotton 3. US - Soybean for last 15 years with no health
● Unintended Economic Consequences: hazard
Monopoly of Private companies — “Terminator 4. High density planting (HDP) of compact
Seeds” varieties outperforms hybrids at the field level
● Impact takes generations to be visible. 5. Liability clause for legal protection for Farmers.

Controversy: Dhara Mustard Hybrid (DMH ­11)

Argument for: → Argument against: →

1. To increase the nutritional content of a crop. 1. Food safety:- It uses glyphosate — a


2. To develop resistance to: weedicide that has been linked to cancer.

a. Abiotic stresses like temperature,salinity 2. Biosafety


or herbicide-resistant. a. Mustard fields are highly attractive to
b. Biotic stresses like insect-resistant crops. Honeybees and other pollinators.

3. Increases yield and productivity of Mustard by 3. Terminator Seeds: - Thus farmers have to buy
30% the seeds every season from the makers of
GM seeds.
4. Reduces pesticides usage by 30%.
4. Alternatives available: - improved agronomic
5. Increased farmer profits by 60%
practices which can improve yields manifold.
5. Stagnant yields of BT Cotton.

Controversy: Herbicide-Tolerant variety of Bt Cotton (Ht-bt cotton)

Argument for: → Argument against: →

1. Resistance by Pest: Pink bollworm. 1. Unsafe for Consumption for human animal
2. Less labour-intensive and hence is cost- health
beneficial. 2. Pesticide Poisoning: 60 labourers and
3. Improved yields: Can withstand the spray of farmers died in Maharashtra due to inhalation
glyphosate, a herbicide used to remove weeds. of pesticides, which were attributed to HT
seeds.
4. Global acceptance: Canada and the US
allowed GM crops to be grown 3. Indiscriminate usage of glyphosate can
commercially in 1996. cause health hazards

5. GM oil imported: India imports thousands of 4. Impact takes generations to be visible.


tons of GM edible oil. 5. “Terminator Seeds” — Creating Monopoly.

APMC

What? →

Features: Problems: Way Forward:

1.

1. Highly fragmented markets


2. Insufficient Number of Market
3. Market Fee/ Charges
4. Post—Harvest Wastages
5. Monopoly of APMCs
6. Restrictions in Licensing
7. Less Remuneration to Farmers - 32% to 89% of produce cost
Economics of Animal rearing
● Cabinet Committee on Economic Affairs has recently approved the establishment of Animal
Husbandry infrastructure Development Fund worth Rs. 15000 crores.

LIVESTOCK

Importance:
● 4% to India GDP + 11% of the world’s livestock population
● NSSO: 16.44 million people (9% of Population) are engaged in 1. Non Farm Income - 15%
the activities of farming of animals, mixed farming, fishing and a. Poverty —
aquaculture. Alleviation
● 2. 65% Employment to Rural
3. Food and Nutrition
MILK: Largest crop in India in terms of value; it’s value is more than the Security
total value of paddy and wheat put together. 26% to total agriculture 4. Social Security - Cattle
GDP. Wealth
● India surpassed EU to emerge as the largest dairy producer by 5. Inputs such as Manure
2020. 6. Cushion at time of
● Dairy industry is expected to overtake IT as largest employer Drought
○ 2 crore jobs annually will be created for next decade. 7. Draft power
Initiatives: Challenges:

1. Budget 2019 - Pradhan Mantri Matsya 1. Lack of Vets + Lack of vaccination


Sampada Yojana (PMSSY) 2. Low productivity - Milk output is 50% of Global
2. White Revolution + Blue Revolution Average
3. National livestock mission: 2014-15: 3. Environment Pollution - N2
4. Rashtriya Gokul Mission - Indigenous Breed 4. Lack of Nutrition fodder
5. GEMINI, a portable receiver for fish­ermen 5. Lack of Organised Market
predicts probability of catches. 6. Over Grazing
6. E-Pashu Haat 7. Lack of Int. Integration
7. National Programme for Dairy Development 8. No Pvt. Int + Lack of Credit - 4% of Total Agri
8. More funds under other Schemes such as credit
Rashtriya Krishi Vikas Yojana (RKVY), Rural 9. Adulteration (Oxytocin)
Infrastructure Development Fund (RIDF)
10. Lack of Culture of Insurance (Very Low
Penetration)

Way Forward: → 20TH LIVESTOCK CENSUS

1. Improve Technologies , breeding, processing, and infra — ● Ministry of Fisheries, Animal


Automation. Husbandry and
2. Insurance against losses Dairying:Livestock should
be at centre of policy
3. Animal health and outreach of veterinary services — Mobile
rush.
Veterinary Clinic (MVC) + number of Veterinary
colleges/Universities ● Digitise + Capture Breed-
wise number of animals
4. Better paying markets for livestock and commercialization of
and poultry birds +
livestock.
Topper = UP
5. Contract Livestock Farming.
6. Strengthening of linkages — co-operatives, producers’
associations, and contract farming.
7. PPP: Gujarat Model - Mobile Dispensaries
8. ‘One-stop Centre’ for solutions

Initiatives:

1. National Dairy Plan (Phase I)


a. Cattle productivity
b. Rural Infra expansion
c. Market Access

MARINE FISHERIES SECTOR

● India is the 2nd largest fish producer in the world.


○ 6.5% share of agricultural GDP.
○ Employs 16 million people.
○ State Subject. Inland = 2/3rd of Total.
● Potential:
○ Long coastline of about 8118 km.
○ EEZ of 2 million sq Km
● Challenges:
○ Issues with Deep Sea Fishing — Higher capital and investment
○ Unorganised market system — No B/F linkages.
○ Lack of Infra — Standard Boat building yards etc.
○ Lack of value addition technology.
● Steps Taken:
○ Blue Revolution — Integrated Development and Management of Fisheries.
○ Draft national policy on Mariculture has been formulated to ensure sustainable farmed seafood production.
○ National Policy on Marine Fishing 2017.
○ Marine Fisheries Regulation and Management (MFRM) Bill 2019
□ Under obligation UNCLOS and WTO.
■ Covering the gap between Centre and state.
■ Social Security for fishermen.
■ Fishing in EEZ: The Bill prohibits fishing by foreign fishing vessels, thus nationalising EEZ.
■ Fisheries management plan.

DRAFT NATIONAL FISHERIES POLICY 2020

● Need:
○ Stagnation in Fishing Industry due to limited scope of expansion.
○ Inadequate Infra (Fishing Harbours, Cold Chain)
○ Use of obsolete technology for harvesting coupled with low capital infusion
○ Disease, absence of species diversification
● Features:
○ Fisheries Management Plan (FMPs) & Integrated Fisheries Development Plan (IFDP)
○ Legislation: The center will also enact a comprehensive legislation (“National Marine Fisheries (Regulation
and Management) Bill, 2019”) for holistic resource utilization in EEZ.
○ National Fisheries Development Council
○ National Marine Fisheries Authority
○ Private Investment
○ Cluster based approach

Food processing
● https://www.thehindu.com/opinion/op-ed/changing-the-agri-exports-basket/article36598351.ece
● Food Processing comprise of two process: 1. Manufacturing Process + 2. Value added food.
● Data:
○ 32% of Total food market
○ India Ranks 5 overall
○ 10.69% of India’s export ($36 Bn) - WCO
○ Can curb post harvest lost (Rs. 2 Lakh Cr - CIPHET)
○ Low Processing level: India’s FPI currently processes less than 10% of its agri-produce, as against ~65% in USA
and ~23% in China.

Scope: Significance:

1. India as a leading producer — 1. Can curb post harvest lost (Rs. 92,000 Cr -
a. Fruits and Vegetables (Rank 2) CIPHET)

b. Milk Products (Rank 1) 2. Increase in farmers income - Doubling Farmers


income Vision
c. Meat and Poultry (Rank 1—3)
3. Decrease dependence on MSP!
d. Food grain (285 mn tonnes)
4. 100% FDI is permitted in FPI!
2. Total food production will double in next 10
years, hence lot of scope for investments. 5. Food Security and Nutrition - Fortification.

3. Increase in Demand due to increase in 6. Employment - Absorption of Labour from


disposable income and urbanisation. Agriculture.

4. Supply Side advantage: Favourable Climate, 7. It will promote Crop diversification and help
Long Coastline, Economic Labour curb negative impacts of monoculture

5. Export opportunities — (Eco Survey 2017-18) 8. It will provide alternate market


— 10.69% of India’s export ($36 Bn) - WCO opportunities (Shanta Kumar Committee -
Only 6% of the farmers benefit from Gov
6. Robust Supply chain and contract farming.
procurement).

Draft National Food Processing Policy, 2019


1. PM Kisan SAMPADA Yojana (2016-2020)
a. Rs 6000 Cr - MoFPI + Central Sector 1. Establishment of “Specialised Agro
Processing Financial Institutions” (SAPFI)
2. Mega Food Park Scheme (2008) → bringing
together farmers, processors and retailers. for ensuring credit
a. Collection centres, Infrastructure, one 2. Mega Projects would in fast track mode
time capital grant upto Rs. 50 Cr for 3. Enhanced role of States capital investment
projects subsidy
b. 22/37 Food Parks are operational 4. Suggests a review of the MFP scheme
(2019). parameters.
3. Integrated Cold chain, (299 projects 5. Special incentive package for development
underway) of a cluster of smaller units around it.
4. Scheme for creation of Forward and 6. Cold chain and Food Parks have been
Backward linkages. declared as infrastructure to ensure greater
5. Agro Processing Cluster flow of funds.
Challenges:
6. Operation Green (Union Budget 2018-19).
a. Rs. 500 crore to FPOs, agri-logistics. 1. Lack of Formalisation — 74% of employment is
b. Price fixation scheme (TOP) - informal in IFP
Stabilisation, Market linkage, minimum 2. Expensive credit facilities
wastage etc. a. Less FPI under Mega Food park
7. Food Safety & Quality Assurance b. Lack of promoters from Private sector.
8. Human Resources and Institutions 3. Permissions - Time taking to get approval
9. Portal called ‘Nivesh Bandhu’ to aid and assist 4. Lack of Availability and high cost of land
potential investors in the food processing
5. SCM gaps — Inadequate linkage of
sector.
processors, exporters and bulk purchasers with
10. 100% FDI in Food processing industries farmers result in mismatch.
(Automatic Route)
6. Lack of product development and
Innovation
7. Inadequate focus on quality and standards

Supply Chain Management


● SCM is a process where all the members of value chain are integrated to deliver product and information in a
sustainable time.
○ SCM is planning, implementing, monitoring operations of supply chain as efficiently as possible.
● Three Stages:
○ Raw Material from some producer
○ Manufacturing the final product
○ Retail distribution

Initiatives of Gov:

1. e-NAM connecting all APMCs (585) where can directly sell their product.
i. Real time Electronic Pricing
ii. Single point to levy duty
2. Digital and Analytics for precision and efficient farming.
3. Strengthening FPOs for community infrastructure and storage
4. Investing in Cold Storage.
a. Cold Chains — Aim: Bring Cold storage and processing together
b. MoFPI scheme in 2008 for cold chain:
i. To encourage backward and forward linkages in agricultural supply chain
ii. To minimise the post harvest losses
c. Need:
i. Wastage of food grains
ii. Concentration in few states
iii. 80-90% (Majority) used for Potatoes. Diversification is needed.

Challenges in SCM:

1. Poor Infrastructure — Agro products are getting merely 30-35% of their market price due to SCM issues.
2. Fragmented and unorganised Agriculture
3. Lack of real time scenario
4. Large share of unorganised players in SCM.
5. Operating commercial viability challenges.
6. Regional imbalances in food production and demand being difficult to cater.

Way Forward:

1. Private Sector investment - third party logistics players


2. FDI
3. Specialised models to support investments (VGF, Land acquisition etc.)

Land reforms
What?

● In a narrow sense, land reform means the distribution of surplus land to small farmers and landless tillers
● More broadly, it includes regulation of ownership, operation, leasing, sales, and inheritance of land.

Need for Land Reforms:

1. Equity: Essential to eradicate rural poverty


2. Peasants aspiration and movements like Tebhaga Movement, since last 200 years.
3. For Social justice and equitable distribution of land
4. Diffusion of wealth, increase in income and productive capacity
5. Inadequacy of returns and absence of surplus with the tenants, they could not undertake improvements on land
6. Traditionally, upper castes owned land and the lower castes were the tenants/agricultural labourers.
7. Increase of productivity

Article 39:

1. The ownership and control of the material resources of the country should be so distributed as best to serve the
common good
2. The operation of the economic system should not result in a concentration of wealth

Tenants: →

1. Occupancy Tenants: Ownership of land before land revenue system came into place
2. Sub-Tenants: Small/Marginal Land owners or landless farmers.
Traditional LR (Pre ’91): → Modern LR (Post ’91)

● Agrarian Reforms Committee under Kumarapa


This was market led reforms i.e. pertaining to selling
and buying of land rather than Agricultural purposes.
1. Abolition of Intermediaries (Zamindars) →
Best 1. Modernisation of Land Records
a. Zamindars were exploitative. No a. Scientific Survey
investments were made hence the
b. Digitisation of Land — (Note: Before
productivity was low.
digitisation, the distribution has to be
2. Tenancy Reforms fair.)
a. Security of Tenure to Sub tenants - gives c. MoRD = 90% of villages in India have
incentive to increase productivity too. computerised the Records of Right
b. Regulation of Rent - All these reforms (RoR).
were Legal but there were loopholes - i. Bhoomi Project in Karnataka
No registration of sub tenants.
ii. Rajasthan Urban Land
c. Exceptions: West Bengal (Operation (Certification of Titles) Act,
Bargadar - Registration of Sub tenants) 2016:
& Kerala.
iii. Andhra Pradesh's use of
3. Ceiling of Land holding & Redistribution of blockchain
surplus land to sub tenants: →
2. Land Acquisition for Public Purposes:
a. To decrease inequalities. → Land Acquisition Amendment Bill, 2015
b. Largely failed → Joint Family, Benami a. Requirement of Consent of Project
transfer, formal divorce to wife was affected people - 80% for Private/70% for
given. PPP Project
c. Bhoodan movement - Vinobha Bhave. i. 5 Sectors exempted from
4. Consolidation of Land holding consent: → Defence/Rural Infra/
Infra/Housing/ Corridors
a. Since 1970s → Due to population
pressure, size of land holding was b. Social Impact Assessment (SIA)
decreasing → Lower Productivity. - People Environment

b. Problems: → c. Max. of 5% irrigated multi-cropped


land can be acquired in a district.
i. Change in ownership was needed
and sizes differed so does fertility d. Compensation to land loss: → 4x Market
and other factors. Price

ii. “Pre-sumptive Titles” e. Employment Gurantee - To at-least one


in each household.
c. Punjab and Western UP had some
success with GR but small farmers lost 3. Facilitating Land Leasing
ownership in many cases. a. Registration of Land Owners (Conclusive
5. Co-operative farming Ownership) and Lease holder (Sub-
tenants - Security)

CONTRACT FARMING

Tamil Nadu has become the first State to enact a law on contract farming based on the lines of Model Contract
Farming Act, 2018 of the Central Government.

● This act ensures that farmers are paid at a pre-determined price, as per registered agreements, safeguarding their
interests during times of bumper harvest or fluctuating market prices.
● As per the law, farmers would get support from purchasers for improving production and productivity by way of
inputs, feed and fodder, technology.
● The Act also provides for the setting up of a Dispute Settlement Committee at the level of revenue sub- division.

In February, 2020 the State government enacted the Tamil Nadu Protected Agricultural Zone Development (TNPAZD) Act,
2020, with objectives to use the available agricultural lands for sustainable development of agriculture and ensure that the
agricultural activities were not unduly constrained by non-agricultural use or other development objectives.

● In the wake of economic reforms, land reforms appear to have taken a back seat in India.
● The experience of countries like Japan and Korea shows that land reforms can help in faster and more sustainable
development of capitalistic agriculture.

LAND LEASING

● Model Land Leasing Act, 2016


● Problems:
○ Landowners do not lease out land for fear of losing possession and thus keep changing the tenants.
○ Tenant farmers cannot avail the benefits of government schemes like credit and insurance.
● Key Provisions:

1. Legalised Land Leasing (Solved the ownership problem).


2. Removed adverse possession + Automatic resumption of ownership.
3. Access to institutional support to all tenants including sharecroppers to access insurance, bank credit
4. Resolution of Conflicts through mediation (3rd party) or Local Gov and institution of special land tribunal.

● Issues:

1. Only few states moved amendments based on this.


2. Asymmetry between the landowner and the tenant.
3. Does not place responsibility on state governments to provide recognition to the cultivator.

● Potential:

1. Productive usage of millions of hectares of fallow land and reduce pressure of size on Agriculture.
2. Social security to tenants as it will provide landless poor, small and marginal farmers a means of livelihood and
protection through bank credit and insurance cover.
3. Inclusive Development as the growth — It will also help achieve the target of doubling farmer’s incomes.

Way Forward: →

1. Special Protection for Women - Nepal law. Encouraging collective farming through SHGs
2. Participation of the farmers in deciding boundaries - Bottom up approach.
a. Ex. Madhya Pradesh, the formation of district-level task forces to settle land related grievances
3. Strengthening National Land Reform Council
4. Awareness Creation
5. Periodic assessment of implementation
6. Fast Track Courts
7. Role of panchayats and gram sabhas
8. Updated recording of land title.
Conclusion: Land reforms are major instrument for social transformation and if done well can result into egalitarian
society.

Model Bill on Conclusive Land Titling

● According to a World Bank study , land-related disputes accounted for two-thirds of all pending court cases in India.
● A NITI Aayog study on strengthening arbitration estimated that disputes on land or real estate take an average time of
20 years in the courts to be resolved.
● India currently follows a system of presumptive land titling. This means that land records are maintained, with
information on possession, which is determined through details of past transactions. Holding registration papers does
not actually involve the government or the legal framework guaranteeing the ownership title of the land.
● Under a conclusive land titling system, land records designate actual ownership. The title is granted by the government,
which takes the responsibility for accuracy. Once a title is granted, any other claimant will have to settle disputes with the
government, not the title holder.
● Advantages:
○ Will drastically lower litigation related to land
○ Government may provide compensation to claimants in case of disputes,
○ The title holder is not in any danger of losing ownership
○ Increase in investor’s confidence thus promoting active land market
○ Less hurdles for infrastructure development — thus less costly delays and inefficiency
○ Urban local bodies could levy property taxes properly as there will be clear ownership data available
○ Access to agricultural credit with land as collateral due to proven ownership.
● Provision of model bill:
○ Land Authorities to be set up by each State government, which will appoint a Title Registration Officer (TRO) to
prepare and publish a draft list of land titles based on existing records and documents.
○ Having considered and resolved all the disputed claims, the Land Authority will publish a Record of Titles.
○ After than 3 years of time to challenge the record and post that High court will settle the disputes.
● Challenges:
○ Land records have not been updated for decades, especially in rural and semi-urban areas.
○ Local governments have not been provided with the resources or manpower to conduct such surveys
○ Lack of access to documents for many people such as proof of inheritance.
● WF:
○ Comprehensive village-level surveys with community involvement are a necessary precursor to the land titling
process.

17th CAA: → Laws in 9th Schedule.

Problems with Land Solutions: Initiatives:

1. Decrease in Land Holding 1. Shifting out of farming 1. PMKISAN


Size 2. Increasing Yield 2.
2. Less Investments, More 3. More Investment —
Subsides (5x than prior) Virtuous Cycle (Education,
Roads)

Current Affairs

PESTICIDES BAN

Pesticide covers compounds including insecticides, fungicides, herbicides, plant growth regulators and others.

Positives: Negatives:

1. Improving productivity 1. Health → Hormone disruption & cancer.


2. Protection of crop losses/yield reduction 2. Impact on environment
3. Vector disease control a. Birds, fish, beneficial insects
3. Effect on soil fertility - kills Micro-
organisms.
4. Eutrophication!
5. Aq. system → Bio-Accumulation.

Also, Banning Pesticides = Acceptance of Exports.

Initiatives:

1. Anupam Verma Committee - 2013


a. Ban 18 Pesticides.
b. Action taken against person who doesn't comply under Insecticides Act, 1968
2. MoHFW → Regulates the level in food
3. Under Soil Health Management Scheme, financial assistance is provided to States for imparting training
4. Bio-fertiliser
a. India is signatory to UNEP led Stockholm Convention for persistent organic pollutants
and Rotterdam convention which promotes open exchange of information and calls on exporters of hazardous
chemicals to use proper labelling.
5. Draft Pesticides Management Bill 2020 aims to regulate the manufacture, imports, storage, transportation, inspection,
testing and distribution of pesticides.

PESTICIDES MANAGEMENT BILL, 2020

● It seeks to regulate the manufacture, import, sale, storage, distribution, use, and disposal of pesticides, in order to
ensure the availability of safe pesticides and minimise the risk to humans, animals, and environment.
● It seeks to replace the Insecticides Act, 1968 which currently governs the registration, manufacturing, export, sale and
use of pesticides in India.

Provisions: Benefits:

● Defines Pest & Pesticide: ● Production and distribution of safe and effective
● Constitution of Central Pesticides Board: to pesticides
advise the central and state governments on ● Reduce crop losses
scientific and technical matters arising under
the Act. ● Better health of people and the environment.
● Registration of pesticides ● Advertisements for pesticides will also be
● Procedure for obtaining licence to manufacture, regulated to prevent misleading claims.
distribute, stock pesticides ● Heavy penalty
● Regulating prices (if necessary) ● A central fund that will provide compensation
● Prohibition on certain pesticides for farmers facing losses due to illegal, low-
quality or spurious chemicals.
● Offences and penalties

Issues: Way Forward:

● Export of pesticides: PMB 2020 does not allow ● Focus on minimal use of pesticides
the export of pesticides that are banned in ● Pesticide promotion must not be allowed: Like
India even if those are approved for use in pharmaceutical drugs.
other countries.
● Farmers must be made aware of judicious
● Encouraging the import of formulations:
usage
ultimately damaging the crop, health of
● Successful alternative agro-ecological methods
farmers, environment.
of pest management without using any
● Mandatory Prescription for purchase of
chemical pesticide can be used.
pesticides which will pose a huge obstacle in
● Wider consultations on the Bill and for it to be
the timely procurement of pesticides.
placed before a Select Committee.
● Power of licensing & registration: too much
power in hands of bureaucracy.

FEMINSATION OF AGRICULTURE

● According to Oxfam India, women are responsible for about 60-­80% of food and 90% of dairy produc­tion.

Issues:

1. Claiming ownership of the land


a. In Agricultural Cen­sus 2015, almost 86% of women farmers are devoid of this proper­ty right in land
b. This also deprives them of Credit.
2. Double Burden — Work and Home.

Way Forward:

1. Collateral Free Loans under micro-finance initiative of NABARD.


2. SHGs/Co-op/collective farming should be adopted.
3. Women Centric Components in schemes for ex. Dedicated funds allocation in Rashtriya Krishi Vikas Yojana
4. Women Centric Designs of Machines.
5. Krishi Vigyan Kendras in every district can be assigned an addi­tional task to educate and train women farmers about
innovative technology along with extension services.

FAO: → Equalising access to productive resources for female and male farmers could increase agricultural output in
developing countries by as much as 2.5% to 4%
DRAFT SEED BILL 2019

● Indian seeds market reached a value of US$ 4 Billion in 2018.


● Necessary to enhance seed replacement rates and specify standards.

Legislations in India:

1. For Quality - Seeds Act, 1966.


2. For Licensing - Seeds Control Order, 1983.
3. For IPR - Protection of Plant Varieties and Farmers’ Rights Act, 2001 (PPVFR Act)
4. Seeds = under the Essential Commodities Act, 1955.

Features of the Bill:

1. The new draft Bill will replace all prior legislations governing the seed market.
2. All varieties of seeds for sale have to be registered and meet minimum standards.
3. For Transgenic varieties of seeds, clearance under the EPA, 1986.
4. Mandatory certification through a proper lab process for all seeds instead self certification.
5. Regulation of sale price during emergent situation.
6. Bill exempts farmers from the requirement of compulsory registration.
7. Penalties

Issues:

1. PPVFR Act was based on voluntary registration, while this bill enforces registration.
2. Important method of recording the contributions of farmers in new seed varity is overlooked
3. “Ever-greening” provision as re-registration of seeds after the validity period is allowed..
4. No constitution of a committee to decide on compensation for farmers — Clause of 2010 Bill.
5. Paltry penalties.
6. Price capping in emergent situation will discourage seed-tech firms

WF: →

1. Price regulatory mechanism need to be introduced in the Bill.


2. Machinery to deal with the compensation matters must be introduced in the bill itself.
3. Introduction of Seed Crop Insurance for compensation if seeds do not give the desired yield.
4. Introduction of provisions banning the print misleading pictures on seed packages.

For the seed sector and its laws to be truly farmer-friendly, the public sector has to recapture its lost space.

LOCUST ATTACK

● They belong to the family of grasshoppers and have life span of 90 days.
● Desert locusts are “biphasic” animals, meaning they can take on two entirely different forms.
○ “Solitary” form = Relatively harmless to crops
○ “Gregarious form” = Start forming swarms
● These locusts started arriving in Rajasthan around the first fortnight of April, much ahead of the normal July-October
normal.
● The FAO has three categories of Desert Locust situations: outbreak, upsurge, and plague.
○ The current locust attack (2019-2020) has been categorised as an upsurge
● Reasons:
○ Cyclones → Transformed deserts into Lakes for breeding in Oman and Yemen.
○ Indian Ocean Dipole
○ Wind Movement = Westerlies
○ Favourable Weather conditions
● Effects:
○ Acc. To FAO, India is facing the worst locusts in 26 years.
○ Crop Damage (5 Lakhs Hectares in RJ)
■ One square km swarm can eat food in a day upto food equivalent for 35,000 people.
○ Allergies
○ Harmful Pesticides
○ Threat to Aircrafts
○ Effects on Trees
● WF:
○ Use Bio-pesticides with Aerial spraying (Using Helicopters and Drones)
○ Cooperation from East African countries to South Asia including Middle East and Pakistan with India to
comprehensively control the growth and spread of locusts.
○ Active Role of: UNEP, FAO, WHO.

KUSUM

● Background:
○ Why?: — Solar Aim + INDC + Farmers income + Elec. Subsidy.
○ It targets to add decentralised solar power capacity of 25 GW by 2022.
● Components:
○ A: 10,000 MW - Decentralised grid connected solar based power plant.
○ B: Off-grid solar pump — 17.50 lakh solar pump.
○ C: Solarisation of grid connected electric pump.
● Challenges:
○ Increase in ground water exploitation.
○ Increase in subsidy burden to provide pumps without any cuts elsewhere.
○ Missing the intended beneficiary — Small farmers.
○ Missing financing mechanism.
● WF:
○ Monitor ground water extraction.
○ Gradual Increase in agriculture tariffs on power supply.
○ Clear targets and incentivise small and marginal farmers
○ Address the state disparity issues.
FOOD SECURITY - FUTURE OF FOOD

● Reduce Growth in Demand for Food (WRI Report)


○ Approximately one-quarter of food produced is wasted. Save it.
○ Need of sustainable diet: Animal based food required 20% more land and leads to 20% more emissions.
● Increase livestock and pasture productivity: Demand for animal-based foods is projected to grow by 70% by 2050
● Enhance the Fisheries Management: One third of marine stocks were overfished in 2015,
● Improve soil and water management.

AGRICULTURAL CREDIT

● History:
○ Phase I — (1951-69) — 1st FYP in 1951 + Nationalisation of banks in 1969
○ Phase II — (1970-1990) — PSL norms + Lead Bank Scheme, RRBs - 1976, NABARD - 1982
○ Phase III — (1991 onwards) — 1st major nationwide farm loan waiver in 1990 + NABARD - SHG-Bank
Linkage Programme in 1992.
● Mechanism: PSL, Interest Subvention Scheme, KCC, SHG, JLG.
● Issues:
○ Non Institutional Agricultural credit still persists at around 28%.
○ Absence of land leasing framework
○ Regional disparities in Agricultural Credit.
○ Poor deployment of agricultural credit to allied sectors (~6-7%)
● Way Forward:
○ Improve the Reach of Institutional Credit: — Complete digitization process and updation of land records
○ Reforming of land leasing framework by adopting policies like the Model Land Leasing Act - by NITI.
○ Establish a federal institution in agriculture on the lines of GST Council.
○ Addressing regional disparity: PSL guidelines should be revisited
○ Increasing Credit Flow to Allied Activities: Set separate targets for loans towards allied activities under
○ Enhancing the sub-target of SMFs under PSL
○ Agricultural Loans against Gold as Collateral.

FERTILISER SUBSIDY

● According to a SBI report, Indian fertiliser industry is third largest in the world in terms of production and second largest
in terms of consumption.
● India fertilisers market is projected to register a CAGR of 11.9% during the forecast period (2021-2026).
Issues: WF:

1. High Fiscal Burden — 0.5% of GDP (2nd after 1. DBT of Rs. 5000/year — CACP
Food) 2. Rationalisation — Capping sale of Number of
2. Large Subsidy backlog - Rs. 570 Bn Bags, Change in policy wrt different Agro-
3. Import: — 28% of Total Climatic Zones

4. NPK Ratio: 25:5:1 (Ideal - 4:2:1) 3. Awareness - Farmer - Proper Use

5. Ecological impact — GHGs, Contamination of 4. Green Fertiliser - Bio-Fer


Groundwater, Algal Bloom 5. Nano-Fertilisers - Less quantity and more
effective

UREA SUBSIDY

● Government is choosing for direct transfer (DBT) of urea subsidy to the beneficiary farmers’ bank accounts
instead of DBT to firms based on point of sale.
○ Will reduce leakages, black marketing, overuse — if ceiling is put.
● India is 2nd largest consumer of urea fertilisers after China.
● New Urea Policy-2015 (NUP-2015) has been extended till 2019-2020, with the objective of maximising indigenous
urea production, promoting energy efficiency in urea production and rationalising.
● Issues: —
○ Availability — Controlled sale and delays in import.
○ Over usage — due to cheaper — urea as compared to others.
○ Over regulation — creates hoarding, black market.
○ Economic survey 2015-16 pointed out that
■ 24% of the urea subsidy is spent on inefficient producers.
■ 41% is diverted to non-agricultural uses including smuggling to neighbouring countries.
■ 24% is consumed by larger, presumably richer farmers.
○ Fiscal burden — 70% of total fertiliser subsidy — Rs. 730 billion for fertiliser subsidies in 2015.
● WF: —
○ DBT.
○ Digitisation of land records.
● Good Steps —
○ New Urea Policy-2015 (NUP-2015)
○ Neem Coated Urea (NCU)
○ Gas Pooling for Urea manufacturing plants.
○ Soil Health Card (SHC)

FORMATION AND PROMOTION OF FARMER PRODUCER ORGANISATIONS (FPOS)

● A Producer Organisation (PO) is a legal entity (company, a cooperative society etc.) formed by primary producers, viz.
farmers, milk producers, fishermen, weavers, rural artisans, craftsmen.
○ FPO is one type of PO where the members are farmers.
● Background: —
○ The concept of FPO begun during 2011-12 as a pilot project of 250 FPOs.
○ Report of 'Doubling of Farmer's Income (DFI)' recommended formation of 7,000 FPOs by 2022.
○ In Union Budget 2019-20, creation of 10,000 new FPOs over the next five years was announced.
● About Scheme: —
○ Central Sector Scheme. Ministry of Agriculture & Farmers welfare.
○ Objective: Budget 2019-20 wala — 10000 New FPOs
○ Beneficiaries: Small and marginal farmers who do not have economic strength to apply production technology,
services and marketing including value addition.
○ Cluster Based Business Organisations (CBBOs) will be formed at cluster/state level for implementing the
scheme.

SOIL HEALTH CARD SCHEME

● Soil health and fertility is the basis for sustainable profitability of the farmers. Using optimal doses of fertilisers and
cropping pattern as per the scientific recommendation is the first step towards sustainable farming.
○ India spent nearly Rs 80,000 crore on fertilizer subsidy in 2018.
● Analysis: —
○ Coverage: Around 22.5 crore SHCs have been distributed.
○ Increased yield — 5-6%.
○ Reduction of use of chemical fertilisers by 8-10%.
● WF:
○ Subsidy on recommended dose of micro-nutrients, bio-fertilisers and organic inputs should be encouraged.
○ Develop standard operating practices for labs for storage, analysis and distribution of SHCs.
○ Financial backing for Infra Development
○ Convergence of similar state schemes

PRADHAN MANTRI KISAN SAMMAN NIDHI (PM-KISAN)

● PM-KISAN payments of ₹1,364 crore have been wrongly made to more than 20 lakh undeserving beneficiaries.

Provisions: Issues:

● Central Sector + DBT + 11 Crore Beneficiaries ● Lack of Farmer Data Base


● Rs.6000/- per year (Rs.2000/- every four ● Difficulty in Identifying Beneficiary: Multi-owners
months.) to all land holding farmer irrespective ● Bank branches adjusted the deposit money
of land size against past liabilities of few farmers
● Identification of beneficiary by State/UT ● Neglect leased cultivators
● Exclusion: Professional; Income Tax; Group ● Inadequate financial support
A/B/C
● Lack of grievance redressal mechanism

Way Forward: — Strengthening IT backbone

● Land reforms; States: A bottom-up; Better


timing

MILLET in India

● Millets are a group of small-seeded grasses, widely grown as cereal crops or grains for human food and as fodder.
● UNGA approved the resolution sponsored by India to declare 2023 as the International Year of Millets.
● India is the largest producer of millets in the world with a 41.0% global market share.
● Government is also continuously increasing the minimum support price (MSP) of millets (bajra, jowar, and ragi)
substantially so as to incentivise farmers to grow millets especially in drought prone areas.


Challenges: Way Forward:

● Disproportionate focus on rice & wheat: GR rev. ● Commercial/packaged food


○ From 33% in 1950-51 to 15% by 2018- ● Millet-based foods in international and national
19 a feeding programs to overcome nutrient
● Lack of awareness deficiencies

● Lack of ready-to-eat millet-based products ● NITI Aayog: Integrate millet promotion with
other schemes such as ICDS and PDS. E.g.,
● Millets need more processing
Odisha
● Monoculture of ragi within millets risks agro-
● Mixing millet flours with other flours of high
biod
acceptability and preparing composite foods.
● Near absence of input supply and subsidy

PULSES

● To achieve self-sufficiency in pulses, Union government formulated strategy for Kharif 2021 season.
● Certified seeds of High Yielding varieties (HYVs) will be distributed [20 lakh mini-kits i.e. 10x of last year] free of cost to
increase intercropping

● Pulses are superfoods — dry, edible seeds of


plants in the legume family Eg. chickpeas,
lentils, dry peas and beans.
● Pulses account for around 20 per cent of the
area under food grains and contribute around
7-10 per cent of the total foodgrains production
in the country.
● India = World’s largest producer, importer,
consumer

Challenges: —

1. Low Yield Gap — upto 40-50%


2. Inputs related challenges: for e.g., non-availability of location specific HYVs quality certified seeds, in-flow of
sub-standard seeds, Lack of demonstration of implements like light seed drills, zero-till machine etc
3. Credit related challenges: Lack of access institutional credit discourage them to purchase quality inputs and adopt
improved technology.
4. Production Related challenges: Biotic and abiotic stresses (like mid-season cold waves and terminal heat during
Rabi, micronutrient deficiency etc), soil alkalinity, salinity, water-logging etc.
5. Cultivation on marginalised lands: Green revolution pushed pulses cultivation in marginal and sub-marginal lands
a. Around 84% area under pulses is rain-fed with soils relatively of low fertility.
6. Ineffectiveness of MSP: — Skewed towards Wheat and Rice.
7. Lack of Post-Harvest infrastructure: There is lack of infrastructure for scientific storage and related activities, like
standardisation, grading, packaging and insurance services for the pulses sector.
8. Price Volatility: CRISIL has observed that inflation in pulses follows a cyclical pattern, with prices shooting up every
2-3 years. Pulses follow cobweb phenomenon wherein production responds to prices with a lag, causing a
recurring cycle of rise and fall in output and prices.
9. Other Challenges include, lack of knowledge on current advances in production and management technology, poor
knowledge base on nutrient use efficiency (NUE)

HORTICULTURE

● Gov. launched Horticulture Cluster


Development Programme (CDP) to ensure
holistic growth of horticulture.
● National Horticulture Board — Cluster
approach
● Horticulture includes production, utilisation and
improvement of horticultural crops, such as
fruits and vegetables, spices and
condiments, ornamental, plantation,
medicinal and aromatic plants.
● Horticulture crops are characterised by high-
value crops, higher productivity per unit of area
and lower requirement of irrigation and input
cost.
● India accounts for 13% of the global production
of fruits and 21% of vegetables, making it the
second largest producer, after China.
● Fruits and vegetables account for nearly 90%
of total horticulture production in the country.

Significance: — Challenges: —

1. Sunrise Sector (Draw Graph) - 18% per year 1. Small Land Holding — No Economy of Scales
increase 2. Post Harvest wastage - 30-40%
2. High Export value (37% of total) 3. Low Food Processing
3. Increase in production. From 150 mT 2001 to 4. Linkages - Infra/Logistics
320 mT in 2021 5. High cost of production
4. Higher Productivity — 8 T/H compared to ~2.3 6. MSP for Rice and Wheat
T/H of Food grain
7. Information asymmetry
5. Rise in Demand
8. NTBs, Sanitary and Phyto Sanitary measures.

COTTON CULTIVATION

● Kharif, Black Soil, 20-28 ˚C, 55-110 cm is ideal. 180 frost free days.
● India is largest producer. 2nd largest consumer.
● 60 mn people are engaged in cotton production.

Problems: — WF: —

1. Low productivity: 450 Kg/ha compared to USA


(1000), China (1800)
2. High cost of inputs
3. Poor irrigation: 62% from rain fed
4. No latest technology for post processing
5. Unpredictability of monsoon, prices, demands
and global market.
6. Low soil organic carbon content, Decrease in
fertiliser factor productivity, Insect Resistance
development to Bt cotton and insecticides.

NATIONAL MISSION ON EDIBLE OILS – OIL PALM (NMEO-OP)

● Focus on NR and A&N


● Price assurance to the oil palm farmers on the lines of the minimum support price (MSP)
● Reduce the import dependence: Annual edible oil demand is around 25 million tonnes, 13 million tonnes of which is met
by imports. Palm oil accounts for over 55% of these imports, making India the largest palm oil importer in the world.
● Helps to meet Global demand: Global demand for vegetable oils is projected to increase by 46% by 2050.

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