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Agriculture PART 1
1. Agriculture Subsidies
What is it? governmental financial support to farmers and agribusinesses. Different Types are
Input subsidy, Price subsidy, Infrastructural subsidy, Export subsidy

Various Forms, Fertiliser- New Pricing Scheme. Issue- indiscriminate use—> loss of soil fertility.
Government Solution- awareness, SHC, neem coated urea, organic farming
Initiatives, Issues,
Solution Credit- NABARD, loans at 4% interest

Debt Waiver- Government takes over liability

Power- subsidised rate to farmer, Issue- overuse —> groundwater depletion. Solution-
Separate agriculture feeder network

Seeds- High yielding variety seeds at subsidised prices, promotion of R&D

Price (MSP) Issue- cereal centric, biased to rich farmers and rich states. Solution- Crop
diversification

Need for poor targeting, Diversion of limited monetary resources, Inefficient subsidy system,
rationalisation Detrimental impact on environment, free commodity promotes inefficient use

Way Forward Targeting the right segments, Optimization of the subsidy, Use of JAM trinity, subsidies
to high-value commodity sectors like poultry and dairying, Resolving marketing and
logistics constraints, interest subvention scheme, strengthening formal baking in rural
areas

NITI Aayog Recommendations-

Link SHCs with Kisan Credit Cards, Reorient fertiliser subsidy policy, Align pesticide
framework with food safety laws, Targeted subsidy on liquid fertilizers, Financial
inclusion, Use of technology

2. PM-KISAN (Pradhan Mantri Kisan Samman Nidhi)

Features DBT of Rs 6000 in 3 installments to small and marginal landholder family, having
cultivable land upto 2 hectares

Need fall in food inflation, to increase farmer income, support for procuring inputs

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Benefits reduce hunger and poverty, over credit constraints, increase in investment, pro-poor

Challenges Landless labourers not covered, leakages, state has to provide basic services, cannot
be used a substitute, does not solve underlying problems, benefit absentee
landlords

Way Forward State subject hence Centre provide only enabling environment, fastening of crop loss
payments, focus on market-led production schedule, private players to render
services

3. Agriculture Marketing
What is it? Covers all the activities in the movement of agricultural products from farms to
consumers

Objectives- remunerative price for farmer, Narrow down price difference between
farmer and consumers, Minimise the role of middlemen.

Importance National Commission on Farmers headed by MS Swaminathan and Dalwai Committee

commented on increase in food production but stagnant farm income, loss of food
produced due to lack of infrastructure, shift in demand pattern of commodities,
need for MSP for farming to be remunerative

Challenges difference of tax structure in states, exploitative nature of APMCs, presence of

intermediaries, isolated agro regions, Lack of warehousing and storage facilities,
Lack of uniformity in grading and standardisation, Lack of market information, lack
of vertical integration and policy distortions.

Government State owned warehousing corporations, Price Stabilization Fund, Operation Green,
Initiatives GrAM, e-NAM, Agri-Market Infrastructure Fund, NITI Aayog’s- Agricultural Marketing &
Farm Friendly Reforms Index, Agricultural Produce and Livestock Marketing
(Promotion and Facilitation) Act, 2017, Draft Agriculture export policy 2018, Model
contract farming Act 2018, 1.5 times MSP for kharif crops, Tax relief to FPOs

Way Forward- NITI Farmer-Consumer Markets, encourage contract farming, encourage integrators.
Aayog scaling up of successful experiences, promote producers association, revise
Recommendations Essential Commodities Act, PPP models, encourage FPOs to participate in e-NAM,
Removal of legal barriers, Rationalisation of market charges

Suggestions of Committee on encouraging investments in Supply Chains

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provision for cold storages, exempting perishables from APMC, freedom to farmers to
sell directly to aggregators and processors, replace licensees of APMC markets with
open registration, budgetary support and capitalising on schemes

4. Model Agriculture Produce and Livestock Marketing

(Promotion and Facilitation) Act, 2017
Objectives create a single agriculture market with a single license, wholesale agri-market every
80km, no separate fees for individual markets.

Features recognition of a State/UT as a single market, restriction-free trade,

Disintermediation of food supply chain, conducive environment for private
wholesale market yards and farmer-consumer market yards, direct interface between
farmer and buyer, warehouses/silos/cold storages and other structures/space as
market sub-yard, Freedom to the farmers to sell their produce, Promotion of e-
trading, single point levy of market fee, national market, Rationalisation of
charges, Special Commodity Market-yard and Market-yard of National Importance
(MNI), democratisation of Market Committee and State/UT Marketing Board.

Benefits better price realisation, increased avenues to sell their produce, multiple fees
eliminated, access to national markets, doubling farm income, for food processing
industries raw material would be made available at lower prices, maintain healthy
food inflation, direct interaction between farmers and end-users

5. e-NAM
About to create a national agriculture market by linking all mandis in all states

Benefits emergence of value chains, scientific storage, reduce the trade cartels, Better price
discovery

Challenges states are opposed, digitally illiteracy, intermediation will still exist, requires low-
cost transportation infrastructure, Access to mandis

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Way Forward Fruits and vegetables brought under purview of NAM, Barriers in interstate transfer
have to be removed, Aggregators to compile the produces of small farmers, Care to
ensure markets do not get cornered by speculators or cartels, effort for the clearance
mechanism

6. Cropping Pattern
What is it? the proportion of area under different crops at a given point of time.

Factors- Geographical, Socio-Cultural, Infrastructure, Economic, Technological.

Types- Mono-Cropping, Multiple-Cropping, Inter-cropping.

Phases- Pre-Green Revolution- Food crops, little diversification

Green Revolution Phase- wheat-rice pattern, intensive agriculture

Economic Reform Phase (Post 1991)- export, contract farming, crop diversification

Challenges Low yield levels, water stressed cropped area, Inefficient extension delivery
systems, focus on Staple crops

Way Forward NCAER suggests-

legislative compulsion, District Planning Officers who introduce crop planning in

every season, agricultural mechanisation corporation for supplying various inputs on
loans.

NITI Aayog recommendations-

technology driven Agriculture Advisory Service, Custom hiring centres, Investment

subsidies for micro-irrigation

7. Crop Diversification

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What is it? addition of new crops or cropping systems for returns from value-added crops

Benefits Increases productivity, stabilises income, spread production and income risk,
Reducing livelihood vulnerability, agronomic benefits

Challenges According to FAO report-

dependent on rainfall, Sub-optimal and over-use of resources, Inadequate supply of

seeds, Fragmented land holding, Poor basic infrastructure, Inadequate post-harvest
technologies and infrastructure, weak agro-based industry, Weak research-farmer
linkages, Inadequately trained human resources, Host of diseases and pests,
Decreased investments

Government Integrated Development of Horticulture in the Northeastern Region, National

Initiatives Agriculture

Insurance Scheme, Technology Mission on Cotton, Capital Subsidy, Watershed

Development Fund, Infrastructure Support, Marketing, Seed Crop Insurance, Seed Bank
Scheme, Cooperative Sector Reforms

Way Forward Dynamic seed development plans, increase the seed replacement rate, Increase
Variety Replacement Ratio, develop climate resilient varieties of crops, Seed
testing facilities, model guidelines for seed licensing, technology driven Agriculture
Advisory Service

8. Animal Husbandry and Diarying

Status According to 19th Livestock Census

India is World’s highest livestock owner, First in buffalo population, Second in cattle
and goats population, Second largest poultry market, Third in sheep population, Fifth
in ducks and chicken population, Tenth in camel population

Importance Low gestation period, low investment and high returns, Low level of skills, wider
market availability, Decentralized growth, nutritional security, overcoming the
limitations of climate change, Alternative source of income, Cheap manure

Challenges low productivity of milch animals, lack of skill improvement and capacity building,
problems in pasture, Populations of indigenous breeds have gone down, Shortage of
Male Germplasm/Breeding Bulls, Livestock extension services, adulteration, Lack of
access to organized markets and meager profits, hardly any private sector

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investment

Government National Livestock Mission (NLM), National Mission on Bovine Productivity (NMBP),
Initiatives National Program for Bovine Breeding and Dairy Development (NPBB&DD), Rashtriya
Gokul Mission, Dairy Entrepreneurship Development Scheme, National Dairy Plan,
Rastriya Kamdhenu Aayog

Way Forward Suggestions of NITI Aayog-

Breeding of indigenous cattle, bull mother farms, high value conversion of milk,
pasture protection and management, greater coordination between agencies

Suggestions of FAO-

separate Indian Council for Veterinary and Animal Science Education, grazing policy
for livestock, disaster management fund for livestock, rural based abattoirs in animal
tracts

9. Operation Flood
About world’s biggest dairy development program, transformed India to world’s largest
milk producer, helped dairy farmers, National Milk Grid, village milk producers
cooperatives.

Reasons for failure political interference, bureaucratic apathy, lack of a professional approach, lack of
knowledge on how to run co-operatives

need for 2nd white subsidiary nature of dairying, stagnant yields, rising feed/fodder costs , shift
revolution towards other vocations, Increasing population, rising milk prices

Way Forward Large scale dairy farms, Hub and Spoke Model, Leasing out farm infrastructure,
Community ownership

.
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10. Fisheries
Status As per Eco survey 2019

Fisheries sector has shown a rapid growth, India is the second largest fish producer,
50% of inland fish production is from culture fisheries, Fish and fish product exports
emerged as the largest group in agricultural exports.

Challenges over exploited, low productivity, loss of habitat, high cost, Low investment,
Inadequate supply of resources, Slow adoption of new technologies, deep-sea fishing,
Inadequate cold chain infrastructure, Loss of biodiversity, Security of fishermen,
Lack of a reliable database, Water pollution, Lack of fiscal and policy support

Government In Budget 2019-20, new fisheries department, Blue Revolution – Neel Kranti Mission,
Initiatives National Policy on Marine Fishery, 2017, PM Kisan Matsya Sampada Yojana

Way Forward inland fisheries, Investment in hatcheries, cage culture, fill large infrastructure gaps,
R&D

NITI Aayog Suggestion- Integration Blue Revolution with MGNREGA, fish

cooperatives

11. Poultry
Challenges Poor infrastructure, Competition from international players, vegetarianism and
animal rights, occurrence of diseases, dumping and protectionism by developed
countries, Availability of poultry feed, Small farms losing

Way Forward Encourage Processing and brand development, IEC on nutritive value, skill
development, Marketing Intelligence, Industry- Academia partnership

Government Centrally Sponsored Scheme For Establishing Poultry Estates And Mother Units For
Initiatives Rural

Backyard Poultry

12. Apiculture

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Prospects increasing production and productivity of crops, employment, enhances farmers

income

Government National Horticulture Mission, National Bee Board

Initiatives

13. Sericulture
Benefits employment, distribution of income

Challenges Lack of knowledge, Non availability of raw materials, Crop failure, pest and diseases,
Health risk, Unavailability of loans and subsidies, Decreasing demand, competition
from blended silk

14. Model Agricultural Land Leasing Act, 2016

Features legally lease the land with mutual consent, the leased holders’s claim on land not valid,
automatic resumption of land after lease period, Unused investment returned to
tenants, Disputes dealt by Special Land Tribunal

Prospects agricultural efficiency, investment in land improvement, occupational mobility, Lease

holder may receives institutional loan, insurance and disaster relief

Limitations Change in land use pattern, food security under threat, maximum lease period not
fixed, Act is silent on land already under lease, Promotes absentee landlords

Way Forward credit and insurance facilities, technical inputs, Modernisation of the agriculture
marketing, Modernisation and digitisation of land records, Standardisation of lease
agreements and dispute resolution

15. Land Acquisition

Need expedite land acquisition, displacement of people, appeal mechanism, resettlement
and rehabilitation, Urgency clause

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Right to Fair Defines “public purpose” projects, Social Impact Assessment survey, Compensation-
Compensation and four times in rural areas and twice in urban areas, mandatory consent- 70% for PPP
Transparency in and 80% for private, develop equal size of wasteland for agriculture, Head of the
Land Acquisition, department will be made responsible, land has to be returned to the original owner,
Rehabilitation and Land Acquisition, Rehabilitation and Resettlement Authority, exemptions to 13
legislations
Resettlement Act,
2013

Criticism Complex procedure for acquisition, High cost of acquisition and compensation,
Consent vaguely defined, Exemptions to 13 acts.

Right to Fair Repealed exemptions to 13 legislations, consent clause, SIA, returning of land
Compensation and exempted for five categories, includes acquisition of land for private hospitals and
Transparency in private educational institutions, compulsory employment to at least one member of
Land Acquisition, such an affected family, removed the accountability of the Head of Department, prior
Rehabilitation and sanction before prosecution, complete acquisition in 42 months
Resettlement

(Amendment) Bill,
2015

Criticism taking away consent clause, no rationale why some projects require consent and
others do not, cutting red tapism, prior sanction of government before employee is
prosecuted.

16. Land Records Modernisation

Reasons for non- transaction gets registered not the land title, lack of coordination between
availability of departments, high cost of registering property, registration of property is not
ownership data mandatory

Impact cannot use their principal asset as collateral to borrow, affect future property
transactions, artificial scarcity and skyrocketing urban real estate prices.

Government National Land Records Modernization Programme (NLRMP), 2008, Digital India Land
Initiatives Records Modernization Programme (DILRMP)

Hurdles High cost of setting up the framework, Ascertaining conclusive ownership,

fraudulent sales and land acquisition, Lack of coordination

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Way Forward NITI Aayog suggets-

Complete digitisation of land records, Location agnostic online registration

17. Food processing Sector

Status contributes approx 1.6% of India’s GDP, 11.95% of formal employment, low value
addition per worker, India is the world’s second largest producer of fruits and
vegetables, second largest production of marine products, meat and poultry, single
largest producer of milk, largest livestock population

Need poor value addition, post-harvest wastage problem, shifting Consumption patterns,
undernutrition, doubling farmers income, narrow gap between rural and urban India,
urban culture, employment intensive, proximity to food-importing nations, world
economies are integrating, increase shelf life of products

Potential rich agriculture resource base, Low level of food processing, Low labour cost,
Strategic geographic location, Increasing Demand, Favourable economic and cultural
transformation, Liberalisation and growth of organised retail, increase in spending
capacities, strengthen backward integration

Challenges Poor supply chain linkages, Infrastructure bottlenecks, Lack of skilled manpower,
Low adherence to quality standards, variety of taxes, Lack of R&D investment, Low
level of Linkages between Industries, insufficient Food testing facilities, sanitary
and phytosanitary regulations, cost effective technologies, Food Safety Laws,

Government 100% FDI under automatic route, PM Kisan SAMPADA Yojana, Mega Food Parks,
Initiatives Operation Greens, PM Kisan Matsya Sampada Yojana, Focus area under Make In India,
NABARD- Food Processing Fund, National Institute of Food Technology
Entrepreneurship and Management, Draft National Food Processing Policy 2017

Way Forward Infrastructure status for agriculture value chains, government collection centres
and warehousing facilities, enhancing value addition in vegetable and fruit, Upgrade
wholesale markets, Convergence in government initiatives, Direct sales, Model Law
on Contract Farming, e-NAM, Restructure the Essential Commodities Act, Attract
private investment, Improve logistics and storage facilities, Raise standards to
converge with international standards, Set up testing laboratories, integrated
processing hubs

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