Agriculture

Facts

• Marginal farmers have largest number of holdings (68%) but not proportional amt of land
• Small and marginal farmers are 86% which operate on 47% of the total agri-area

Agriculture Census

Agriculture Census

Agri in india

• imp for poverty alleviation and employment generation
• share of agri in GDP declining (50% in 1950-51 to 16% in 2019-20)
• share of agri to employment declining (70% $\to$ 42%)

Backdrops

• 2 wars
  • China - 1962
  • Pakistan - 1965
• 2 droughts: 1965-66
• not able to channelize resources in rural investments → food crisis
• food grain production and yield decline
• food grain import increased
• Cold War → food aid used to twist arms of recipient countries and seek compliance
• US shipment once abruptly stopped for 48 hours at height of drought

Green Revolution

• M.S. Swaminathan
• Wheat, rice, tubewells

refer: Green Revolution

White Revolution

• Dr. Verghese Kurien
• milk

refer: White Revolution

Pink Revolution

• poultry sector

refer: Pink Revolution

Minimum Support Price

refer: Minimum Support Price

Pradhan Mantri Annadata Aay Sanrakshan Abhiyan

• Price Support Scheme
  • phy procurement of pulses, oilseeds done by central nodal agencies
• Price Deficiency Payment Scheme
  • cover all oilseeds for which MSP notified
  • payments into registered bank acc
• Pilot of Private Procurement & Stockist Scheme
  • Pvt agency shall procure commodity at MSP in notified markets during notified period from registered farmers

refer: Pradhan Mantri Annadata Aay Sanrakshan Abhiyan

Pradhan Mantri Kisan Samman Nidhi

• income support of Rs. 6k/yr to all eligible farmer families in 3 equal installments
• refer: Pradhan Mantri Kisan Samman Nidhi

Agri Extension Services

• also called rural advisory services
• key input for improving productivity in agri by providing timely advisory services to farmers to adopt best practices, tech, meet with contingencies, market info

Agencies in India

• Dept of Agri and Coop, NABARD: scheme for establishment of agri-clinics, agri business centres, ventures by agri graduates
• ICAR: associated in agri extension activities thru Krishi Vigyan Kendras (KVK) and Institute Village Linkage Program (IVLP) all over the country
• FPO, NGO, Coop sector

National Mission on Agri Extension and Tech (NMAET)

• launched during 12th plan
• 4 sub mission

1. Sub Mission on Agri Extension (SMAE): adoption of quality seeds via agri clinics, agri business centers, kisan call centres
2. Sub Mission on Seed and Planting Material (SMSP): seed chain from nucleus seed to supply to farmers for sowing. Protection of plant varieties and farmer rights authority (PPV&FRA) to put in place effective system for protection of plant varieties, rights of farmers and plant breeders and to encourage development of new varieties of plants
3. Sub Mission on Agri Mechanization (SMAM): Farm power availability and agri productivity; farm mechanization. Cater to small and marginal farmers and where farm power is low
4. Sub Mission on Plant Protection and Plant Quarantine (SMPP): keeping crops disease free using scientific and env friendly tech, Integrated Pest Management Custom Hiring Centres: A unit of costly, advanced, bigger farm machinery implements for custom hiring by farmers who cannot afford to purchase high end agri machinery. Govt. through SMAM provides subsidy @40% of project cost to individual farmers up to a cap of Rs. 60L.

Krishi Vigyan Kendra

• GoI thru ICAR - network of 700 KVK
• conduct technology assessment and refinement, knowledge dissemination and provide critical input support for farmers with multidisciplinary approach
• graasroot level institutions for empowering farming community
• part of decentralized planning and implementation to achieve growth in agri and allied sector

Support

• on farm testing to demonstrate location specific agri technologies and prove potential of various crops at farmer’s fields
• need based training programs for farmers, women, rural youth
• awareness about improved agri tech thru extension programs
• critical and quality inputs like seed, planting material, organic products, bio-ferts, livestock, piglet and poultry strains are produced by KVK and made available to farmers.

Farmers Producer Organization

• ensure better income of farmer through an organization of multiple farmers

refer: Farmers Producer Organization

Marketing of Agri Produce

Agri Produce and Marketing Committee (APMC) Act

• first sale forced in mandi

Features

• trader needs licence and shop/ warehouse in mandi to operate there
• price of farmer produce to be discovered thru auctioning

Issues

• wholesalers, retail traders or food processing companies cannot purchase farm produce directly
• mandi charges creating distortion, cascading effect
• mandis located across a state are not integrated; separate licences for each mandi required for trading in separate mandis

Exploitation

• bribes for license → corruption
• auctioning either doesn’t happen or traders form cartel to keep prices artificially low.
• during peak season, traders don’t reduce price for final customer; during lean season, traders don’t pass benefit to farmers

Electronic - National Agriculture Market

• online platform

Benefits

• traders all over india bid for farm produce
• increases choice for farmer
• better price discovery
• promotes scientific storage and mvmt of agri goods
• logistics integrated

refer: Electronic National Agriculture Market (e-NAM)

Model Agri Produce and Livestock Marketing Act 2017

• CG, April 2017, liberalize trade in agri and livestock
• private wholesale markets; direct sale by farmers to bulk buyers
• allow godowns, warehouses and cold storages to act as regulated markets - inc market avenue and create competition
• simpler regulation and licencing structure. Remove disincentives for inter state trade. Lower cess, customs

Benefits

• better deals to farmer
• stable prices for consumer

Contract farming

• agri production carried out acc to agreement b/w buyer and farmer
• quantity, quality, time
• commitment to buy at a later date

Advantage

• guaranteed market outlet to farmer, no uncertainty regarding prices. Often provided with loans in kind
• purchaser has guaranteed supply, quality and timely delivery

Issues

• if one contract party doesn’t follow? Farmers may sell to diff buyer for better price or purchaser downgrading quality to pay less
• buying firms invariably more powerful than farmers, have high bargaining clout

Roadblocks

• most farmers marginal or small
• no incentive for contract farming
• heterogeneity in quality
  • consolidate farmers through FPO and self help groups
• on demand side, allow private players to bring new technology and business models

Model Contract Farming Act 2018

• setting up of unbiased state level agency - Contract Farming Authority to carry out assigned mandates
• Registering and Agreement Recording Committee at district / taluka level for registrations of contract
• no rights, ownership or possession to be transferred
• promoting FPO
• making provisions to guide parties to fix pre agreed price for violent market movements
• Contract Farming Facilitation Group at village level to take quick and need based decision relating to production and post production activities

Agri Based Clusters

• geographical concentration of industries which gain advantages through co-location
• Horizontal and Vertical
• advantages for small producer and agribusiness firms
• access to global markets, higher value added production, raise competitive advantage of farmers
• promote co-opetition
• socio-economic development of a given territory. +ve impact on income enhancement, employment generation and well being of workers and entrepreneurs

Challenges

• large no. of small and marginal farmers
• regulatory hurdles like APMC and land leasing
• meeting consumer demands while increasing efficiency and productivity
• need to introduce market driven innovation and new tech
• increasingly stringent env regulations

Examples

• Jute - rural WB
• Bamboo, organic food - NE
• Mega food park - punjab, UK

Agri Infrastructure Fund

• CG, long term debt financing
• 1L-Cr financial support
• interest subvention of upto 3% per annum upto 2Cr
• Credit guarantee coverage

Benefits

• facilitating formal credit to farm and farm processing activities expected to create job opportunities in rural areas
• storage and processing facilities will be created, allowing higher prices to farmers
• reduce wastage, increase processing and value addition
• boost to agri sector, india compete on global stage
• invest in post harvent mgmt solution - warehousing, cold chain, food processing; global presence in organic and fortified foods

Animal husbandry

• estd. of dairy and meat processing and value addition infra
• beneficiaries - FPO, MSME, Not for Profits, PVT companies, Individual entrepreneurs
• 90% money by scheduled bank, 10% by beneficiary
• 3% interest subvention by CG
• 2yr moratorium period; 6yr repayment preriod

Pradhan Mantri Fasal Bima Yojna

• cover post harvest loss
  • seasonal conditions
  • calamities

refer: Pradhan Mantri Fasal Bima Yojna

Doubling Farmers’ Income

Dalwai Committee recommendations

• Improvement in productivity of crops: enhancing access to irrigation and tech advancements
• Improvement in livestock productivity:
• Increase in cropping intensity: short duration crops after rabi and kharif
• Resource use efficiency:
• Diversification towards high value crops
• Shifting cultivators from farm to non farm occupations: high underemployment - 43% of labour force contributing 17% of GDP

Agri Export Polity 2018

• double agri exports
• diversify export baskets
• promote novel and traditional agre product exports

refer: Agri Export Policy 2018