AGRICULTURE

AGRICULTURE

 

 

 

INTRODUCTION

  •         Agriculture is primary Activity.
  •         It includes raising of crops, animal husbandry, agroforestry and  pisciculture.
  •         Agriculture is a State subject.
  •         The United Nations’ Decade of Family Farming (2019-2028) was launched by the Food and Agriculture Organization (FAO) and the International Fund for Agricultural Development (IFAD).
 

TARGETS

  •         Doubling of farmers’ income by the year 2022 (Ashok Dalwai Committee)
  •         Agriculture export policy: increase the agriculture export to over US$ 60 billion by 2022.
 

 

 

RANKING OF INDIA

  •          Third largest consumer of edible oil; Top States: Gujarat (Groundnut), UP (Mustard), MP (Soyabean).
  •          Fourth largest oil seed-producing country.
  •          Second largest fish producer in the world in 2018-19; Inland Source >> Marine Source.
  •          First in milk production since 1998; 20 % of world production milk production.
  •          Largest bovine population in the world.
 

 

 

 

AGRICULTURE CENSUS

 

  •          By Department of Agriculture, Cooperation and farmers welfare
  •          Conducted at interval of every 5 year.
  •          Collect data on structural aspects of farm holdings. “Operational Holding” is a basic statistical unit of data collection.
  •          Operational Holding: All land which is used wholly or partly for agricultural production and is operated as one technical unit by one person alone or with others without regard to the title, legal form, size or location.
  •          First Census in 1970-71; Last Census (10th Census) was conducted in 2015-16.
  •          It found out that the percentage of female operational holdings in the country has increased from about 13% percent during 2010-11 to around 14% during 2015-16.

 

TERMINOLOGIES RELATED TO CROPPING:

 

Cropping Intensity: Number of crops cultivated in a piece of land per annum is cropping intensity.
Cropping Pattern:

 

The cropping pattern depends on a farm and its interactions with farm resources, other farm enterprises, and available technology which determine their makeup.
Multiple Cropping: Growing more than two crops in a piece of land in a year in orderly succession
Inter Cropping:

 

Growing two or more crops simultaneously with distinct row arrangement on the same field at same time.

 

FARMING SYSTEMS:

 

Wetland Farming:

 

Soils flooded or irrigated through lake, pond or canal and land is always in submerged condition.
Dry Land Farming:

 

The practice of crop production entirely depending upon rainfall and the moisture conserved in the soil.
Rain Fed Farming:

 

Crop production in areas where rainfall is, more than 750mm (i.e assured rainfall areas).
Mixed Farming:

 

System of farming on a particular farm which includes crop production, raising livestock, poultry, fisheries, bee keeping etc.

 

INPUTS
•Fertiliser
• Finance
• SeedsDISTRIBUTION
•PDS
•FCI
•Negotiable Warehouse Receipt

SALE
• APMC
•E-NAM
•MSP
•Price Deficiency Payment
Operation Greens

INCOME SUPPORT AND PENSION
•PM Kisan
•PM Kisan Maan Dhan Yojana
•PM AASHA

ISSUES
•Crop Residue and Stubble Burning

 

AGRICULTURE INPUTS

 

Physical Factors Relief + Climate + Soil
Institutional Factors Land Holding + Land Tenure + Land Reforms
Infrastructural Factors Irrigation + Power + Transport + Credit + Marketing + Insurance + Storage
Technological Factors Seeds + Fertiliser + Insecticide + Farm Machinery
Other Factors Government Policy + Extension Services + Education + Skilling

 

Land: Agriculture is a purely land based activity. Size and quality of land has direct bearing  on agriculture productivity and farmers’ income. Land ownership also serves as a social value & security against credit.

Land Holding: Average landholding size of household has shrunk marginally to 1.1 hectare in 2015-16 from 1.16 hectare in 2012-13. 86.21% of India’s cultivated farmland is held by small and marginal farmers with less than 2 hectare of land; While those with 10 hectare and more account for just 0.57%.

 

LAND REFORMS:

 

 

Objectives:

 

  •         Removing institutional discrepancies of the agrarian structure
  •          Issues of socio-economic inequality.
  •          Increasing agricultural production for solving the inter-related problems of poverty malnutrition and food insecurity.
 

First Generation Land Reforms

 

 

  •          Abolition of intermediaries
  •          Tenancy reforms
  •          Redistribution of land
  •         Cooperative farming
  •          Consolidation of land.
 

 

 

 

 

 

Second Generation Land Reforms

(Focused on marketing)

 

  •         land records modernization
  •          Appropriate land compensation
  •         Land leasing
  •          Contract farming- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020.
  •          Consolidation of land holdings
  •          FDI in agricultural sector– At present, 100% foreign direct investment (FDI) is allowed through the automatic route into India for the following agricultural activities:

Ø  Floriculture, horticulture, apiculture and cultivation of vegetables and mushrooms under controlled conditions

Ø  Development and production of seeds and planting material

Ø  Animal husbandry (including breeding of dogs), fish farming, aquaculture, under controlled conditions

Ø  Services related to agriculture and its allied sectors

  •        Use of land banks (Odisha) and land Pooling

 

IRRIGATION:
  • While India accounts for more than 17% of world population but we have barely 4% of world’s water resources.
  • Irrigation water productivity is defined as ratio of the crop output to the irrigation water applied. To produce 1 kg of rice, Indian farmers use 3,000-5,000 litres of water, whereas Chinese farmers manage it within 350 litres of water.

 

Minor Irrigation Schemes Upto 2000 hectares Cultivable Command Areas.
Medium Irrigation Schemes 2000 hectare < Cultivable Command Areas < 10,000 hectares.
Major Irrigation Schemes Cultivable command Areas > 10000 hectares.

 

PRADHAN MANTRI KRISHI SINCHAI YOJANA (2015):
  • Accelerated Irrigation Benefit Programme (AIBP)
  • Watershed Development
  • Setup water harvesting structures like check dams, Nala bund, farm ponds, tanks etc.
  • Encourage traditional water storage systems such as Jal Mandir (Gujarat); Khatri & Kuhl (H.P.); Zabo (Nagaland); Eri & Ooranis (T.N.); Dongs (Assam); Katas & Bandhas (Odisha & M.P.).
  • Har Khet ko Pani
  • Per Drop more Crop

 

  • FERTIGATION: Mixing water-soluble fertilizers in drip system, where fertilizer is delivered into the root system which reduces wastage of fertilizers.
  • MULCHING: It is a simple process of covering the bare soil with straw, wood chips, shredded bark etc. to reduce the water evaporation, soil erosion and weed growth.

 

FERTILISER/PLANT NUTRIENTS

 

FERTILISER FACTS

  •          Second largest consumer of urea after china.
  •         Second in the production of Nitrogenous fertiliser.
  •         One of eight core industries.
  •          Second biggest subsidy after food.
  •          Potash is met through imports.

 

  • Ideal Nitrogen: Phosphorus: Potassium (NPK) ratio in soil: 4:2:1, for India it’s 8:3:1.

 

UREA NUTRIENT BASED SUBSIDY (NBS)
  •        Not included in the NBS.
  •          Source of nitrogenous fertiliser.
  •         Urea Subsidy is a part of Central Sector Scheme which includes freight subsidy for movement of urea across the country.
  •          Diversion of urea to plywood and animal feed makers, smuggled to neighbouring countries like Bangladesh and Nepal – Neem coated urea is one of the solutions.
  •          Urea overuse is detrimental to the fiscal health of the economy, proving detrimental to the soil health of the country .
  •        The Scheme was initiated in the year 2010.
  •          Being implemented by the Department of Fertilisers.
  •         Envisaged linking subsidy to nutrient composition (N, P, K & S) rather than products.
  •         Aim was to discourage farmers from applying too much urea containing only nitrogen and increase the consumption of P&K fertilisers which will result in balanced fertilisation.
  •        Applicable to 22 fertilisers (other than Urea).

 

 

NEEM COATED UREA

 

  • Neem coated Urea
  • Slow release of nitrogen into the soil
  • Improved Plant absorption of Nitogen from Urea
  • Reduced Pesticide Consumption
  • Improved Yields

 

FINANCE/ CREDIT
  • PRIORITY SECTOR LENDING SECTORS: Agriculture, Micro, Small and Medium Enterprises, Export Credit, Education, Housing, Social Infrastructure, Renewable Energy, etc.
  • All scheduled commercial banks and foreign banks (with a sizable presence in India) are required to set aside 40% of their Adjusted Net Bank Credit (ANDC) for lending to these sectors.
  • Regional rural banks, co-operative banks and small finance banks have to allocate 75% of ANBC (Adjusted Net Bank Credit) to PSL.
  • MSP policy
  • Institutions: Cooperatives, NABARD, RRB’s,
  • Kisan Credit Card scheme
  • PM-KISAN

 

SEEDS
  • Quality seeds are essential to increase yield; Green Revolution – HYV (High Yielding Varity) Seeds are used.
  • SEED VILLAGE: A village wherein trained group of fanners are involved in production of seeds of various crops; cater to the needs of themselves and to the neighbouring villages.
  • INDIA’S SEED BANK: India has established its own seed storage facility at Chang Lain Ladakh, Jammu and Kashmir.
  • NOTE: Svalbard Global Seed Vault is the world’s largest seed storage facility situated at Norway.
  • Recently, the Ministry of Agriculture & Farmers’ Welfare has finalized the draft Seed Bill 2019, it is under Parliament’s consideration. The Bill aims to regulate the quality of seeds sold and facilitate the production and supply of these seeds to farmers.

 

  • Nucleus seeds
  • Breeder seeds
  • Foundation seeds
  • Registered seeds
  • Certified seeds

 

Seed Replacement Rate (SRR) or Seed Replacement Ratio

  • Measures how much of the total cropped area was sown with certified seeds in comparison to farm saved seeds.
  • Higher the Seed Replacement Ratio, higher is production as well as productivity.
  • India suffers from a dismal seed Replacement Ratio.

 

 

 

 

 

 

 

 

SOIL HEALTH CARD

 

  •          Printed report card; given to all farmers at an interval of 2 years; implemented by Ministry of Agriculture and Farmers welfare.
  •          The cost of sampling, testing and reporting is borne by Central Government.
  •          It provides two sets of fertiliser recommendations for six crops including recommendations of organic manures and recommendations for additional crops on demand.
  •         Soil samples are tested with respect to 12 parameters:

Ø  Macro nutrients: Nitrogen (N), Phosphorus (P), Potassium (K);

Ø  Secondary nutrient: Sulphur (S); Micronutrients: Zinc (Zn), Iron (Fe), Copper (Cu), Manganese (Mn), Boron (B);

Ø  Micronutrients: Zinc (Zn), Iron (Fe), Copper (Cu), Manganese (Mn), Boron (B);

  •          Physical parameters: pH, EC (electrical conductivity), OC (organic carbon).

 

DISTRIBUTION
  • It is the Supply of food grains and distribution of essential commodities to the poor through a network of Fair Price Shops (FPS) at subsidised prices.

 

 

 

 

PUBLIC DISTRIBUTION SYSTEM:

 

  •          Integrated Management of Public Distribution System-nation-wide portability of ration card holders under the National Food Security Act,2013 (NFSA), through the ‘One Nation-One Ration Card’ system.
ONE NATION, ONE RATION CARD INITIATIVE:
  •          It involves making standard format for ration cards.
  •          Enable beneficiaries of National Food Security Act (NFSA) to purchase subsidised food grains from any fair price shop in these states.
  •         Ration card holders buy food grains anywhere in the country.
 

 

 

FOOD CORPORATION OF INDIA

 

  •         Food Corporation of India (FCI) is the nodal agency under Ministry of Consumer Affairs, Food and Public Distribution for the procurement, storage and movement of food grains, public distribution and maintenance of buffer stocks.
  •          It procures food grains:

Ø  At minimum support price (MSP).

Ø  On an open-ended basis.

  •          Procurement is also done by State Government Agencies and private rice millers on behalf of the FCI.
  •         The food grains are also disposed by FCI and State Governments through sale under Open Market Sales Scheme.
 

 

 

 

 

 

NEGOTIABLE WAREHOUSE RECEIPTS (NWR)

 

  •         NWR are issued by registered warehouses to enable Farmers to get loans from banks against NWRs. This way NWRs become a prime tool of trade.
  •         They are regulated by the Warehousing Development and Regulatory Authority (WDRA).
  •          It allows transfer of ownership of the commodity stored in a warehouse without having to deliver the physical commodity. These receipts are issued in negotiable form, making them eligible as collateral for loans.
  •          NWR avoid distress sale of agricultural produce + Allow transfer of ownership of that commodity without having to deliver the physical commodity + Enhance banks’ interest in lending in respect of farm goods + Can increase liquidity in the rural areas + Encourage scientific warehousing of goods.
  •          E Negotiable Warehousing Receipts was launched in 2017.
  •         Farmers will not have to worry about losing the receipt.
  •          This will also stop farmers from taking multiple bank loans on a single receipt.

 

AGRICULTURE MARKET

 

AGRICULTURAL PRODUCE MARKET COMMITTEES (APMC):
  • Established by the States; Aim: to eliminate the incidence of exploitation of the farmers by the intermediaries; food produce must be brought to the market; sales are made through auction.
  • As per APMC Act – the sale/purchase of agricultural commodities is carried out in a specified market area; producer-sellers or traders pay the requisite market fee, user charges, levies and commissions for the commission agents (arhatias); These charges were levied irrespective of whether the sale took place inside APMC premises or outside it; the charges varies widely across states and commodities.

 

E-NAM:
  • It was launched in 2016.
  • It is a pan-India electronic trading portal for farm produce which aims to create unified national market for agricultural commodities by integrating existing APMC markets.

 

MINIMUM SUPPORT PRICES (MSP):
  • Minimum price set by the Government to protect farmers from the price volatility of Agri commodities.
  • Recommended by Commission for Agricultural Costs and Prices (CACP) and approved by Cabinet Committee on Economic Affairs (Headed by PM)
  • Food Corporation of India (FCI) is the Nodal Agency.
  • As per Commission for Agricultural Cost and Prices (CACP)- there are three types of production costs:

 

A2: Actual paid out cost.
A2+FL: Actual paid out cost plus imputed value of family labour.
C2: Comprehensive cost including imputed rent and interest on owned land and capital.

 

  • CACP considers both (A2+FL) and C2 costs while recommending MSPs.
  • However, C2 costs are used by CACP primarily as benchmark reference costs (opportunity costs) to see if the MSPs recommended by them at least cover these costs in some of the major producing States.

 

 

 

 

 

MSP is declared on:

 

  •         Cereals (7) – Paddy, Wheat, Barley, Jowar, Bajra, Maise and Ragi
  •          Pulses (5) – Gram, Arhar/ Tur, Moong, Urad and Lentil
  •          Oilseeds (8) – Groundnut, Rapeseed/Mustard, Toria, Soyabean, Sunflower seed, Sesamum, Safflower seed and Niger seed
  •          Copra
  •          De-husked coconut
  •          Raw cotton
  •          Raw jute
  •          Sugarcane (Fair and remunerative price)
  •          Virginia flu cured (VFC) tobacco.

 

COMMISSION FOR AGRICULTURAL COSTS AND PRICES (CACP)
  • The CACP is an attached office of the Ministry of Agriculture and Farmers Welfare, formed in 1965. It is a statutory body.
  • It is mandated to recommend Minimum Support Prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production.
  • CACP submits separate reports recommending prices for Kharif and Rabi seasons.
  • Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official).
  • The non-official members are representatives of the farming community and usually have an active association with the farming community.

 

SUGARCANE PRICING:
  • Price of sugarcane is fixed by the centre/State, while the price of sugar is market determined.
  • FAIR AND REMUNERATIVE PRICE (FRP): The minimum price at which rate sugarcane is to be purchased by sugar mills from farmers; fixed by Union government based on recommendations of CACP; Governed by the statutory provisions of the Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act (ECA), 1955.
  • Based on the Rangarajan Committee report of reorganising the sugarcane industry; alternative to MSP in Sugar Industry; Assures margins to farmers, irrespective of whether sugar mills generate a profit or not.
  • Besides FRP, some states such as Punjab, Haryana, Uttarakhand, UP and TN announce a State Advised Price, which is generally higher than the FRP.

 

PRICE DEFICIENCY PAYMENT SYSTEM:
  • Price Deficiency Payment System to address the gaps in Minimum Support Price (MSP) based procurement of crops.
  • Farmers are proposed to be compensated for the difference between the government announced MSPs for select crops and their actual market prices.
  • It will reduce the need for the government to procure food crops, transport and store them and then dispose of them under PDS.
  • PM-AASHA also has a component of Price Deficiency Payment scheme.
  • Similar state schemes are Bhavantar Bharpayee Yojna (BBY) of Haryana, Bhavantar Bhugtan Yojana (BBY) by Madhya Pradesh.

 

OPERATION GREEN:
  • Outlay of 500 crore; to promote Farmer Producers Organizations (FPOs), Agri-logistics, processing facilities and professional management; a scheme for integrated development of Tomato, Onion and Potato (TOP) value chain.
  • OBJECTIVES: Enhancing value realization + Price stabilization + Reduction in post-harvest losses + Increase in food processing capacities and value addition + Setting up of a market intelligence network.

 

PRICE STABILISATION FUND (2014)
  • PSF is a Central Sector Scheme = 100% funded by Union.
  • Nodal → Govt gives Interest free loans given to FCI, NAFED & other central/state agencies to procure pulses and perishable vegetables from local and foreign farmers and sell it to common man at reasonable prices.
  • 2014– set up in the agriculture ministry but 2016- shifted to Consumer Affairs Ministry.

 

AGRICULTURE EXPORT ZONES(2001)
  • It was established through EXIM policy 1997-2001.
  • It was established for the purpose of developing and sourcing the raw materials, their processing, packaging.

 

AGRICULTURE AND INCOME SUPPORT

 

PRADHAN MANTRI KISAN SAMMAN NIDHI (PM-KISAN):
  • PM KISAN ia a Central Sector Scheme.
  • Income support of Rs 6000 per year in three equal instalments.
  • Available to all farmers irrespective of their farm size.
  • Direct Benefit Transfer in beneficiary bank account, thus, elimintaing middlemen ans corruption.
  • It is the first universal basic income type of scheme targeted towards farmers. The scheme aims to provide income support to farmers for easing their liquidity needs to facilitate timely access to inputs.
  • BENEFITS:
  • Easing Liquidity Constraints.
  • Aids the Modernisation Process.
  • Non-Discriminatory in Nature.
  • Enabling the Digitisation of Land Records.
  • Similar scheme in States:

 

SCHEME AREA ASSISTANCE
Ryat Bandhu Telangana 5000 per acre per season (Rabi and Kharif).
KALIA scheme (Krishak Assistance for Livelihood and Income Augmentation) Odisha Annual assistance of Rs 12,500 each to farmers.
Krishak Bandhu West Bengal Rs 5000 to farmers in two instalments.
Mukhya Mantri Krishi Aashirwad Yojana Jharkhand Rs. 5000 / – per acre per year (up to 5 acres).
The Rajiv Gandhi Kisan Nyaya Yojana Chhattisgarh Rupees 13,000 an acre a year is given.

 

PM KISAN MANN DHAN YOJANA:
  • To provide social security to Small and Marginal Farmers in their old age.
  • A minimum fixed pension of Rs.3,000/- is provided to the small and marginal farmers, subject to certain exclusion criteria, on attaining the age of 60 years.
  • It is a voluntary and contributory pension scheme.
  • The Central Government also contributes in equal amount to the Pension Fund.
  • LIC is the fund manager and responsible for pension pay-out.
  • ELIGIBILITY:
  • Small and Marginal Farmer (SMF) – a farmer who owns cultivable land upto 2 hectares as per land records of the concerned State/UT.
  • Age of 18- 40 years

 

PM AASHA-PRADHAN MANTRI ANNADATA AAYSANRAKSHAN ABHIYAAN:
  • The Scheme is aimed at ensuring remunerative prices to the farmers for their produce.
  • Three Components of PM-AASHA:
  1. Price Support Scheme-physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with proactive role of State governments.
  2. Price Deficiency Payment Scheme (PDPS)– This scheme does not involve any physical procurement of crops as farmers are paid the difference between the MSP price and Sale/modal price on disposal in notified market.
  3. Private Procurement & Stockist Scheme (PPPS)- The selected private agency will be hired to procure the commodity at MSP in the notified markets on behalf of the government.

 

COMMITTEES RELATED TO AGRICULTURE

 

National Commission on Farmers/ Swaminathan Committee (2004)

 

  •         The National Commission on Farmers (NCF) was under the chairmanship of Professor M.S. Swaminathan.
  •         Recommended -to fix minimum support prices (MSP) for crops at levels at least 50 per cent more than the weighted average cost of production.
Beekeeping Development Committee
  •        It is setup under the Chairmanship of Bibek Debroy recommended to recognize honeybees as inputs to agriculture and considering landless beekeepers as farmers.
 

 

 

 

 

 

Shanta Kumar committee (2014)

 

  •         Reduce the number of beneficiaries under the Food Security Act—from the current 67 percent to 40 percent.
  •          Allow private players to procure and store food grains.
  •         Stop bonuses on minimum support price (MSP) paid by states to farmers, and adopt a cash transfer system so that MSP and food subsidy.
  •        Abolishing levy rice: Under levy rice policy, the government buys a certain percentage of rice (varies from 25 to 75 percent in states) from the mills compulsorily, which is called levy rice. Mills can sell only the remainder in the open market.
  •         Deregulate the fertilizer sector and provide a cash fertilizer subsidy of Rs 7,000 per hectare to farmers.
  •          Outsource of stocking of grains and setup negotiable warehouse receipt (NWR) system.
  •         Clear and transparent liquidation policy for buffer stock.
 

 

 

Ashok Dalwai committee (2016)

 

  •          On doubling Farmers Income (by 2022)
  •         It recommends that:

Ø  Placing agricultural marketing in the concurrent list.

Ø  Greater private participation.

Ø  Upgrading the existing rural periodical markets as Primary Rural Agricultural Markets for meeting the rural retail market demand.

  •        FPO’s can play an important role in integrating small and marginal farmers into agricultural market system.

 

 

OTHER AGRICULTURE RELATED INSTITUTIONS

 

 

 

 

 

 

SMALL FARMER AGRI BUSINESS CONSORTIUM

  •         Autonomous Society promoted by Ministry of Agriculture and Farmers Welfare.
  •         To promote agribusiness project development in their respective States.
  •         To promote Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs).
  •         Implementation of National Agriculture Market (e-NAM) Electronic Trading platform.
  •         Few Important Schemes Implemented by SFAC: Equity Grant & Credit Guarantee Fund (EGCGF) Scheme, Venture Capital Assistance (VCA) Scheme, Farmer Producer Organization (FPO) Scheme, National Agriculture Market (NAM) Scheme, etc.
  •         SFAC launched the Kisan Rath app with the help of Ministry of Agriculture which lessened the problem of transport of farm produce during lockdown
APEDA
  •          Statutory body under the Ministry of Commerce and Industry.
  •          Promotes export of agricultural and processed food products from India.
  •          Entrusted with the responsibility to monitor import of sugar.
 

 

FPOs

  •         A type of Producer organisation where the members are farmers.
  •          Farmers will have better collective strength, better access to quality input, technology, credit, better marketing access through economies of scale, better realisation of income.
  •          Issues: difficulty in mobilising farmers, proper management, limited membership, autonomy and credit restrictions without offering collateral.

 

CONTRACT FARMING
  • Contract farming is based on a pre-harvest agreement between the buyers and producers.
  • It is under the Concurrent List under seventh schedule of Indian constitution.

 

MODEL CONTRACT FARMING ACT, 2018
  • This ensures buying of entire pre-agreed quantity and price from the farmers.
  • All pre-production, production and post-production services are under its ambit.
  • Bars the transfer of ownership of the farmer’s land to sponsor companies.
  • Contract farming will remain outside the ambit of the respective Agricultural Produce Marketing Act of the states/UTs.
  • Limits of stockholding of agricultural produce will not be applicable on produce purchased under contract farming.

 

ESSENTIAL COMMODITIES ACT (1955):
  • No specific definition of essential commodities in The EC Act.
  • To regulate the production, supply and distribution of commodities. It declares ‘essential’ in order to make them available to consumers at fair prices.
  • Central government can add or remove a commodity in the Schedule of the Act.
  • The government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.

 

AGRICULTURE INFRASTRUCTURE FUND:
  • AIF is a Central Sector
  • It will provide a medium to long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.
  • Debt fiancing facility fot investment in projects.
  • Rs. One Lakh Crore as loans
  • For post harvest management
  • Infrastruct-ure and communi ty farming assets
  • Interest subvention of 3% per annum up to a limit of Rs. 2 crore..
  • From FY2020 to FY2029 (10 years)

 

ORGANIC FARMING
  • India ranks 1st in number of organic farmers and 9th in terms of area under organic farming.
  • Sikkim became the first State in the world to become fully organic in 2016.
  • The major organic exports from India have been flax seeds, sesame, soybean, tea, medicinal plants, rice and pulses.
  • There was an increase of nearly 50% in organic exports in 2018-19, touching Rs. 5151 crore.

 

Government Initiatives to Promote Organic Farming:

 

 

 

Mission Organic Value Chain Development for North East Region (MOVCD):

  •         MOVCD is a Central Sector Scheme, a sub-mission under National Mission for Sustainable Agriculture (NMSA). It was launched by the Ministry of Agriculture and Farmers’ Welfare in 2015 for implementation in the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. The scheme aims to develop certified organic production in a value chain mode to link growers with consumers and to support the development of the entire value chain.
 

 

Paramparagat Krishi Vikas Yojana (PKVY):

  •         Launched in 2015 is an elaborated component of Soil Health Management (SHM) of major project National Mission of Sustainable Agriculture (NMSA).  Under PKVY, organic farming is promoted through adoption of organic villages by cluster approach and Participatory Guarantee System (PGS) certification.
National Program for Organic Production (NPOP):
  •          NPOP grants organic farming certification through a process of third party certification for export purposes.
PM Formalization of Micro Food Processing Enterprises (PM-FME):
  •          The Ministry of Food Processing Industries (MoFPI) launched the PM FME scheme as a part of ‘Atmanirbhar Bharat Abhiyan’. It aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.

 

ZERO BUDGET NATURAL FARMING (ZBNF)
  • Addressing the United Nations conference on desertification (COP-14), Indian PM told the global community that India is focusing on Zero-Budget Natural Farming (ZBNF).ZBNF was also highlighted in budget 2019 in the bid to double farmer’s income by 2022.
  • ‘Zero Budget’ means without using any loan, and without spending any money on purchase of inputs (seeds, fertilizers).
  • ‘Natural farming’ means farming without chemicals. By using biofertilizers, earthworms, cow dung etc.
  • It was originally promoted by agriculturist Subhash Palekar,who developed it in the mid-1990s as an alternative to the Green Revolution’s methods that are driven by chemical fertilizers and pesticides and intensive irrigation.

 

Four Components of ZBNF:

 

Jeevamrutha: It is a mixture of fresh cow dung and aged cow urine (both from India’s indigenous cow breed), jaggery, pulse flour, water and soil; to be applied on farmland.
Bijamrita: It is a concoction of neem leaves & pulp, tobacco and green chilies prepared for insect and pest management, that can be used to treat seeds.
Acchadana (Mulching): It protects topsoil during cultivation and does not destroy it by tilling.

 

Whapasa: It is the condition where there are both air molecules and water molecules present in the soil. Thereby helping in reducing irrigation requirement.

 

RECENT GOVERNMENT POLICIES

 

Agri Reforms Bill Pros Cons
 

 

 

 

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

  •          Permits the sale of produce outside the Agricultural Produce Market Committee (APMC) mandis.
  •          No cess or levy outside the mandis will be charged to farmers.
  •          Permits interstate trade of agricultural produce.
  •          Lead to the end of Minimum Support Price (MSP) regime.
  •          This will facilitate remunerative prices through competitive, alternative trading channels to promote efficient, open and barrier-free interstate and intrastate trade.
  •          The state’s income from the respective mandis would be lost.
  •          Farmers across various states believe that the scheme would lead to the end of Minimum Support Price (MSP) regime.
  •          Lack of confidence and trust causing clashes between farmers and the government.
The Farmers (Empowerment & Protection) Agreement of Price Assurance and Farm Services Act, 2020
  •          This policy encourages ‘contract farming’.
  •          It will reduce the marketing costs and increase farmers’ earnings.
  •          Removes intermediaries appointed by the state APMC.
  •          The probability of conflicts will increase.
  •          Can give rise to intermediaries/middlemen again.
 

 

The Essential Commodities (Amendment) Act, 2020

  •          It deregulates manufacturing, storing, and selling of a range of food products, including cereals, pulses, edible oils, and onions, except in rare situations.
  •          It can bring in new investments in infrastructure provisions, e.g., cold storage, warehouse.
  •          This legalises hoarding effectively, which can be devastating for prices of vital commodities such as vegetables and pulses.

 

 

WTO- MAJOR AGREEMENTS AND CONCEPTS

 

  • Domestic support: given to the farmers for encouraging agricultural activities- research and development, food security subsidies.
  • AOA classifies subsidies in different boxes to regulate the agricultural subsidies through the following mechanisms.

 

AGREEMENT ON AGRICULTURE:

AoA is aimed to remove trade barriers and to promote transparent market access and integration of global markets. It stands on following three pillars:

MARKET ACCESS DOMESTIC SUPPORT EXPORT COMPETITION
Tariffs: Tariffication and Reduction Commitments
  •          Green Box
  •         Blue Box
  •          Development Box
  •         Amber Box: (De Minimus + Commitments)
  •         Export Subsidies
  •         Agriculture Circumvention: Food Aid + Export Credit

 

 

 

 

Green Box

 

  •         Subsidies which are no or least market distorting.
  •          Income Support which is not product specific and uniformly available to farmers and crop doesn’t matter.
  •          subsidies must not distort trade, or at most cause minimal distortion
  •         They have to be government-funded.
  •         They should not relate to (are “decoupled” from) current production levels or prices.
Amber Box / Aggregate Measure Of Support (Ams)
  •          Those subsidies which are trade distorting and need to be curbed.
 

Blue Box

 

  •          This is the “amber box with conditions.”
  •          Any support that would normally be in the amber box, is placed in the blue box if the support also requires farmers to limit production.
De-Minimis support

 

  •          Under this provision, developed countries are allowed to maintain trade distorting subsidies or ‘Amber box’ subsidies to level of 5% of total value of agricultural output. For developing countries this figure was 10%.
Special and Differential Treatment Box
  •         Special concessions to the developing economies for their agricultural development like subsidies for tractors, ploughing machines, pump sets, winnowing machines etc.
Sanitary and Phyto Sanitary Measures
  •          Measures for food safety and animal and plant health based on scientific terms. They should not be arbitrary and discriminatory in nature.

 

 

DIFFERENT TYPES OF REVOLUTION

 

  • Green Revolution – Food Grains
  • White Revolution – Milk
  • Blue revolution – Fisheries
  • Yellow Revolution – Oilseeds
  • Red Revolution Meat
  • Silver Revolution Egg
  • Grey Revolution Fertilisers
  • Golden Revolution Horticulture

 

 

 

Green Revolution

Was done in two phases:

  •          The first Green Revolution in mid 1960’s to mid 1970’s  was to ensure food security as there was severe scarcity of food in the country.
  •          The second Green Revolution (1970’s-1980’s) aims at creating sustainable agriculture by leveraging advancements in technology.

 

BRINGING GREEN REVOLUTION IN EASTERN INDIA:

  •         BGREI is flagship programme under Rashtriya Krishi Vikas Yojana (RKVY).
  •          It is intended to address the constraints limiting the productivity of “rice based cropping systems”.
  •          The BGREI program was announced in the Union Budget, 2010-11.
  •          BGREI focuses on bringing the second Green Revolution in eastern region, which has rich water resources.
  •         Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, West Bengal and eastern Uttar Pradesh (Poorvanchal) are the seven states.
 

 

 

 

 

 

Blue Revolution- Fisheries

  •         Launched in India during the seventh five-year plan from 1985 to 1990.
  •         Pradhan Mantri Matsya Sampada Yojana– to bring all fishermen under the ambit of farmer welfare programs and social security schemes.
  •         Its aim is to augment fish production to achieve its target of 15 million tonnes by 2020 under the blue revolution and raise it thereafter to about 20 million tonnes by 2020 to 2023.
  •          MISSION FINGERLING– facilitate establishment of hatcheries and Fingerling rearing pond to ensure the fish production of fish fingerling, Post Larvae of shrimp and crab in the country.

 

BUDGET 2020-

  •          “Sagar Mitras”- these are extension workers to advise fishermen with processing and marketing.
  •          Target to raise fishery export to ₹1 lakh crore by 2024-25.
  •          Promote growing algae, sea-weed and Cage Culture (growing of fishes in existing water resources in a net cage which allows free flow of water.)
 

 

 

White Revolution- Milk

  •          Nodal Department– Department of Animal Husbandry & Dairying.
  • OPERATION FLOOD:
  •          Operation Flood was started by National Dairy Development Board (NDDB) in 1970s.
  •          Objective– to create a nationwide milk grid. The result was that India became the largest producer of Milk and Milk Products.
  •         Operation flood is called White Revolution of India.
  •          Dr. Verghese Kurien and Gujarat-based co-operation “Anand Milk Union Limited” (Amul) are associated with white revolution

 

ANIMAL HUSBANDRY
  • DPSP- Article 48– requires the State to organise animal husbandry on modern and scientific lines, preserving and improving breeds, and prohibiting the slaughter of cows and other cattle.
  • BUDGET 2020- To eliminate following disease by 2025:
  • Cattle: Foot and Mouth disease, Brucellosis,
  • Sheep and goat: Peste Des Petits Ruminants(PPR)
  • Use MGNREGA workers to develop fodder farms.

 

RELATED SCHEMES:

 

Pashudhan
Sanjivani
  •         Animal Wellness Programme with emergency helpline.
  •          Farmers given Nakul Swasthya Patra- An Animal Health card with UID identification number of each animal registered in a National Database.
e-Pashudhan
Haat portal
  •          Online portal for connecting farmers with breeders of indigenous bovine breeds so they can connect with each other for bulls, artificial insemination etc.
 

Rashtriya Gokul
mission

  •         Indigenous bovine breeds – conserve them & increase their population. E.g. Gir, Sahiwal, Rathi, Deoni, etc.
  •          State govts are given money for establishing Gokul Gram breeding & disease treatment centres.
National
Kamdhenu
breeding centre
  •          For development and conservation of indigenous breeds in a scientific manner.
Rashtriya
Kamdhenu Aayog 2019
  •          Ministry- Animal Husbandry & Dairying.
  •          Aim: Genetic up-gradation of cow resources + Enhance cow productivity through research in organic manure, biogas etc; Cow welfare, cow protection laws.
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