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Agriculture Current Affairs Compilation by Pmfias.

com – January to May 2022

Contents
{Agri – Crops – 2022/02} Saffron Bowl Project ..................................................................................................................2
{Agri – Crops – 2022/04} Wheat Procurement by Government .......................................................................................2
How is the procurement carried out? ............................................................................................................................................... 3
{Agri – Food Security – 2022/02} Millets in Mid-Day Meal Scheme................................................................................4
Millets................................................................................................................................................................................................ 4
Importance of alternative crops (millets like finger millet, maize, pearl millet, sorghum) ............................................................... 5
Challenges in enhancing the role of alternative crops (millets) in the food basket.......................................................................... 6
Mid-Day Meal Scheme ...................................................................................................................................................................... 6
{Agri – Food Security – 2022/02} National Nutrition Mission/POSHAN Abhiyan .........................................................6
{Agri – In News – 2022/01} Purple Revolution ..................................................................................................................7
{Agri – In News – 2022/04} Sustainable Sugarcane Initiative ..........................................................................................7
What is Sustainable Sugarcane Initiative (SSI)? ................................................................................................................................ 8
Sugarcane .......................................................................................................................................................................................... 8
{Agri – In News – 2022/04} System of Rice Intensification ........................................................................................... 12
Main Idea of SRI .............................................................................................................................................................................. 12
Conventional Rice Management ..................................................................................................................................................... 13
{Agri – Irrigation – 2022/04} Deficit Irrigation Practices ............................................................................................... 13
Types of DI....................................................................................................................................................................................... 14
{Agri – Issues – 2022/01} India Needs a Carbon Policy for Agriculture ....................................................................... 15
What is Carbon Farming? ................................................................................................................................................................ 15
{Agri – Livestock – 2022/04} Sagar Parikrama ................................................................................................................ 16
{Agri – Marketing – 2022/02} APEDA .............................................................................................................................. 17
{Agri – Renewable Energy – 2022/04} Bioenergy Crops ................................................................................................ 17
What are Bioenergy Crops? ............................................................................................................................................................ 17
{Agri – Schemes – 2022/01} PMFME Scheme .................................................................................................................. 18
PM Formalisation of Micro Food Processing Enterprises (PM FME) Scheme ................................................................................. 18
Food Processing .............................................................................................................................................................................. 19
Scope & Status of Food Processing Industry (FPI) in India .............................................................................................................. 19
Significance of Food Processing Industry (FPI) ................................................................................................................................ 20
Initiatives by Government to promote FPIs in India ....................................................................................................................... 20
Obstacles in the growth of Food processing industries in India ..................................................................................................... 21
Farmer Producer Organisation (FPO) .............................................................................................................................................. 22
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{Agri – Schemes – 2022/02} Agriculture Technology Management Agency (ATMA) Scheme ................................. 24
What is Agricultural Technology Management Agency (ATMA)? ................................................................................................... 24
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{Agri – Schemes – 2022/02} Gobar Dhan Scheme .......................................................................................................... 24


Key Features .................................................................................................................................................................................... 24
{Agri – Subsides – 2022/02} Fair and Remunerative Prices (FRP)................................................................................. 25
What is FRP?.................................................................................................................................................................................... 25
What is the State Advised Price? .................................................................................................................................................... 25
How are FRP and SAP different from MSP? .................................................................................................................................... 25
{Agri – Subsidies – 2022/02} MSP for Different Crops................................................................................................... 26
Minimum Support Price (MSP)........................................................................................................................................................ 26
About Commission for Agricultural Costs & Prices (CACP) ............................................................................................................. 29
{Agri – Tech – 2022/02} Kisan Drones .............................................................................................................................. 29
{Agri – Tech – 2022/05} Direct Seeding of Rice (DSR) ................................................................................................... 29
What is Direct Seeding of Rice (DSR)............................................................................................................................................... 29

{Agri – Crops – 2022/02} Saffron Bowl Project


PIB | Prelims | GS3 > Major crops & cropping patterns etc.
• Context: North East Centre for Technology Application and Reach (NECTAR) under Saffron Bowl project has iden-
tified few locations in Arunachal Pradesh and Meghalaya for saffron cultivation.
• NECTAR is an autonomous body under the Department of Science & Technology (DST).

Saffron
• Saffron is a plant whose dried stigmas (thread-like parts of the flower) are used to make saffron spice.
• It rejuvenates health and is used in cosmetics and for medicinal purposes.

Conditions of Cultivation
• In India, saffron Corms (seeds) are cultivated during the months of June and July and at some places in August and
September. It starts flowering in October.
• Saffron grows well in areas at an altitude of 2000 m & with a photoperiod (sunlight) of 12 hours.
• It grows in many different soil types but thrives best in calcareous (soil that has calcium carbonate in abundance), hu-
mus-rich and well-drained soil with a pH between 6 and 8.

Major Saffron Producing Regions


• Saffron is cultivated and harvested in the Karewa (highlands) of Jammu and Kashmir.
• Pampore region, known as Saffron bowl of Kashmir, is the main contributor to saffron production.
• Pampore Saffron Heritage of Kashmir is one of the Globally Important Agricultural Heritage systems (GIAHS) rec-
ognized sites in India.

Why Bring Saffron Cultivation to North- East?


• India cultivates about 6 to 7 tons of saffron while the demand is 100 tons.
• The saffron bowl of India is so far confined to parts of Kashmir.
• To meet the growing demand, DST is looking at extending its saffron cultivation to some states in the Northeast (Sik-
kim now, and later to Meghalaya and Arunachal Pradesh).
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• There is a huge similarity of climate and geographical conditions between Kashmir and few regions of Northeast.

{Agri – Crops – 2022/04} Wheat Procurement by Government


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IE | FE | Prelims + Mains | GS3 > Issues related to direct and indirect farm subsidies etc.
• Context: Amid a surge in exports and reports of a decline in production which have pushed mandi prices above the
minimum support price (MSP), wheat procurement by the Food Corporation of India and state government agencies
has declined sharply compared to the previous year.
How is the procurement carried out?
• The government procures food grains (like rice, wheat, and coarse grains) in order to ensure farmer’s, receive the Min-
imum Support Price (MSP).
• The government also maintains a stock to distribute to the poor under the Public Distribution System (PDS) & other
schemes.
• The Food Corporation of India (FCI), along with state government agencies (SGAs), procures wheat.
• The FCI’s wheat procurement system can be Decentralised (DCP) or Centralised (non-DCP).

Centralized System
• Under centralised procurement system, the procurement of food grains in Central Pool is undertaken either by FCI
directly or by State Govt. Agencies (SGA).
• But in states like Punjab and Haryana, FCI/ state agencies procure wheat from farmers through Arhtiyas (commission
agents) as per the state APMC Act.
• Central pool refers to stocks procured through MSP operations for welfare schemes and calamity relief.

Decentralized System
• Under the decentralised procurement system, state governments or their agencies procure, store, and distribute
against the GoI’s allocation for the targeted public distribution system and other welfare schemes (OWS) — rice,
wheat, or coarse grains in the state.
• The excess stocks (rice & wheat) procured by the State/ its agencies are handed over to FCI in Central Pool.
• The expenditure incurred by the State Government on procurement, storage and distribution of DCP stocks are reim-
bursed by Government of India on the laid down principles.

What is the price the government pays?


• The government buys wheat at the MSP, which it declares before the sowing of the crop every year on the recom-
mendation of the Commission for Agricultural Cost and Prices (CACP).
• States can pay bonus over and above this MSP.
• MSPs are currently applicable on 23 farm commodities, including wheat and rice.
• There is no statutory backing for MSPs.
• While procurement agencies ensure that stocks brought to mandis are purchased as per specifications, a farmer who
gets a better price from a private player is free to sell elsewhere.

How much buffer stock is needed?


• Every year wheat stock should be maintained in the central pool as per norms that came into effect in January 2015:
o A buffer stock of 74.60 lakh tonnes of wheat should be maintained in the central pool as on April 1
3

o A buffer stock of 275.80 lakh tonnes on July 1


o A buffer stock of 205.20 lakh tonnes on October 1
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o A buffer stock of 138 lakh tonnes on January 1 every year.


• Currently India holds wheat stock of 189.8 LMT as on April 1, 2022, which is almost 2.5 times of the buffer stock re-
quirement of 74.60 lakh tonnes.
Suggested Reading: MSP for Different Crops covered in Agri CA Feb 2022
{Agri – Food Security – 2022/02} Millets in Mid-Day Meal Scheme
PIB | D2E | BS | GS3 > Issues of buffer stocks and food security
• Context: Central Government requested State Governments/Union Territory Administrations to explore the possibility
of introducing millets under PM POSHAN Scheme.
• India has not realised the role of millets in enhancing food security. It is more focused on strategies like building buff-
er stocks, developing drought-tolerant varieties and boosting irrigation, etc.

Millets
• Jowar, bajra and ragi are the important millets grown in India.
• They provide food for the poor people.
• Though, these are known as coarse grains, they have very high nutritional value.
• For example, ragi is very rich in iron, calcium, other micronutrients and roughage.
• Millets are short duration (3-4 months;) warm weather grasses.
• They are grown in less fertile areas.

Jowar (Sorghum)
• Jowar has a high nutritional value.
• It is main food crop in semi-arid areas of central and southern India.
• Jowar is the third most important food crop with respect to area and production.
• It is a rain-fed crop mostly grown in the moist areas which hardly needs irrigation.
• Jowar is grown both as kharif as well as a rabi crop.
• It is sown in both kharif and rabi seasons in southern states.
• But it is a kharif crop in northern India where it is mostly grown as a fodder crop.
• South of Vindhyas it is a rainfed crop and its yield level is very low in this region.
• It does not grow where the rainfall exceeds 100 cm.
• Clayey deep regur and alluvium are the best suited soils for jowar.
• It can also be raised on gentle slopes upto 1,200 meters height.

Production

Production in 2017-18 (in Million Tonnes)


State Area – Million Hectares Production (MT) Yield – tonnes/hectare
1 Maharashtra 2.2 (43.7%) 1.8 (36.5%) 0.8
2 Karnataka 1.1 (21.9%) 1.1 (22.9%) 1.0
3 Madhya Pradesh 0.3 (5.4%) 0.6 (11.5%) 2.1
All India 5 Mha 5 MT 1.0
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• Tamil Nadu, Andhra Pradesh and Rajasthan are the other major producers.
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Bajra (bull rush millet)


• Bajra is the second most important millet.
• It is a rainfed kharif crop of dry and warm north-western and western parts of the country.
• It is a hardy crop which resists frequent dry spells and drought in this region.
• It is grown in areas of 40-50 cm of annual rainfall. Upper limit is 100 cm.
• Just like jowar, it is also used as food and fodder in drier parts of the country.
• Being a rainfed crop, the yield level of this crop fluctuates a lot from year to year.
• Bajra can be grown on poor light sandy soils, black and red soils.
• It is sown either as a pure or mixed crop with cotton, jowar and ragi.

Production and Distribution

Production in 2017-18 (in Million Tonnes)


State Area – Million Hectares Production (MT) Yield – tonnes/hectare
1 Rajasthan 4.2 (57.4%) 3.8 (41.1%) 0.9
2 Uttar Pradesh 0.9 (12.5%) 1.8 (19.7%) 1.9
3 Gujarat 0.4 (5.4%) 0.9 (10.1%) 2.3
4 Madhya Pradesh 0.3 (4.2%) 0.8 (8.3%) 2.4
All India 7.4 Mha 9.1 MT 1.2

Ragi
• Ragi is mainly grown in drier parts of south India (Mostly drier parts of Karnataka).
• It requires warm climate and 50-100 cm rainfall.
• It is raised on a variety of soils. (Red, light black, sandy, well drained alluvial loams).
• It is a rainfed kharif crop which is sown between May and August and harvested between September and January.
• Karnataka is the largest producer (73.23 per cent).
• Uttarakhand and Tamil Nadu are the other major producers.

Barley
• Besides food, it is used for manufacturing beer and whisky.
• It does not tolerate high heat and high humidity.
• Grows in areas with rainfall range of 75 cm to 100 cm.
• It is grown as a rabi crop in the Great Plains and valleys of the western Himalayas.
• It can be grown up to an altitude of 1,300 meters as in Uttarakhand.
• Production has declined over time (just like most of the millets).
• Rajasthan is the largest producer (40 per cent). Uttar Pradesh is the second largest.

Importance of alternative crops (millets like finger millet, maize, pearl millet, sorghum)
• Erratic monsoon patterns and frequent extreme climate events are posing a threat to food security in India.
• The overall monsoon rainfall has decreased, and the frequency of droughts have increased.
• Almost all crops are sensitive to these changes. However, coarse grains (millets) are more resilient.
• Adding more millets in crop production mix may help food supply withstand vagaries of climate change.
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• In general, the yields of alternative grains are lower than rice, but in rainfed conditions millets perform better.
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• Compared to rice, alternative grains experience smaller decline in yields under climate extremes.
• This means there is an opportunity to increase both climate resilience and grain production.
• Also, alternative grains help save water, reduces energy demand and GHG emissions from agriculture.
• Health and nutrition benefits of millets could be an additional advantage.

Why Choose Millets in Diet?


• Millet as a cereal is a vegetarian option that is widely accepted because it is considered to be a mineral rich food with
all the goodness of fibre.
• Moreover, since it hydrates the colon, it prevents constipation in children and is considered healthy for the gut.
• Millets are high in protein and nutritionists believe introducing millets in children's diet will help in muscle growth.
• Since it has smart carbohydrates and a low glycaemic index, lower than wheat and rice, the risk of obesity is reduced
in children.
• Rich in vitamin B complex, calcium, iron, potassium, magnesium and zinc, millets are being thought of as worthy
substitutes to eggs.
• Besides being alkaline in nature, they are easily digestible for infants.

Challenges in enhancing the role of alternative crops (millets) in the food basket
• Millets are mostly rain dependent crops and grown during the kharif season.
• Rice accounts for 44% of annual grain production & 73% of grain production during the kharif season.
• The rest 27% comes from maize (15%), pearl millet (8%), sorghum (2.5%) and finger millet (1.5%).
• Replacing rice with millets is not going to be easy as agriculture is intimately linked with socio-economic factors and
market forces (subsidies, MSP, free power), all of which affect crop choice.
• Moreover, food habits have changed in favour of rice and replacing rice with millets is not realistic.
• Also, the government’s focus is mostly on food security and nutritional security is completely ignored.

Mid-Day Meal Scheme


• The Midday Meal Scheme is a school meal Programme in India.
• It aims to enhance the enrollment, retention and attendance and simultaneously improve nutritional levels among
school going children studying in Classes I to VIII.
• The Programme supplies free lunches on working days for children in primary and upper primary classes in gov-
ernment, government aided, local body, Education Guarantee Scheme, and alternate innovative education centres,
Madarsa and Maqtabs supported under Sarva Shiksha Abhiyan & National Child Labor Project schools run by the min-
istry of labour.
• It was first launched in Tamil Nadu.
• By 2002, the scheme was implemented in all of the states under the orders of the Supreme Court of India.
• It is renamed to PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme in 2021.
• Ministry of Education is the nodal ministry for the scheme.
• The Central Government also announced that an additional 24 lakh students receiving pre-primary education at
government & government-aided schools would also be included under the scheme by 2022.

{Agri – Food Security – 2022/02} National Nutrition Mission/POSHAN Abhiyan


6

PIB | Prelims + Mains | GS3 > Issues of buffer stocks and food security
• POSHAN Abhiyaan or National Nutrition Mission is a flagship Programme to improve nutritional outcomes for chil-
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dren, pregnant women and lactating mothers.


• It was launched in 2018 from Jhunjhunu in Rajasthan.
• It directs the attention of the country towards the problem of malnutrition and address it in a mission-mode.
• The NNM is an apex body that will monitor, supervise, fix targets & guide the nutrition related interventions across the
Ministries.
• NNM targets to reduce stunting, undernutrition, anemia (among young children, women and adolescent girls) and
reduce low birth weight by 2%, 2%, 3% and 2% per annum respectively.
• Although the target to reduce Stunting is at least 2% p.a., Mission would strive to achieve reduction in Stunting from
38.4% (NFHS-4) to 25% by 2022 (Mission 25 by 2022).

Major Impact
• The Programme through the targets will strive to reduce the level of stunting, under-nutrition, anemia and low birth
weight babies.
• It will create synergy, ensure better monitoring, issue alerts for timely

{Agri – In News – 2022/01} Purple Revolution


PIB | Prelims | GS3 > Major cropping patterns etc.
• Context: Purple Revolution is taking place in Jammu & Kashmir.

Purple Revolution
• It is a result of the Aroma Mission launched by Ministry of S&T through the Council of Scientific & Industrial Re-
search (CSIR).
• Purple revolution involves cultivation of Lavender as a new aroma crop in the Kashmir Himalayas.

Aroma Mission
• In 2016, the Centre launched Aroma Mission to boost cultivation of plants for essential oils which have aromatic me-
dicinal properties.
• The mission supports domestic aromatic crop based agro-economy to move from imported aromatic oils to home-
grown varieties.
• CSIR-Central Institute of Medicinal and Aromatic Plants (CSIR-CIMAP) acts a nodal industry.

Lavender
• It is a perennial flowering aromatic herb or shrub.
• In India, it is cultivated in low rainfall regions & slopes of Himachal Pradesh, Uttar Pradesh & Kashmir Valley.
• It requires cold climatic environment to grow.
• Farmers can earn up to 5 times more returns by cultivating lavender, holistic development of Kashmir, through gainful
employment of the vulnerable educated unemployed youth.

{Agri – In News – 2022/04} Sustainable Sugarcane Initiative


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TH | Prelims + Mains | GS3 > Major Crops & Cropping Patterns etc.
• Context: After achieving significant success in promoting System of Rice Intensification in paddy, the Agriculture De-
partment is seeking to popularise the Sustainable Sugarcane Initiative (SSI) method of cultivation in sugarcane.
What is Sustainable Sugarcane Initiative (SSI)?
• It is another practical approach to sugarcane production which is based on the principles of ‘more with less’ in agri-
culture like System of Rice Intensification (SRI).
• It aims to improve the productivity by using minimal inputs.
• This method involves using less seeds, less water, optimum utilization of fertilizers & land to achieve more yields.
• It is an alternate to conventional seed, water & space intensive sugarcane cultivation.

Principles Governing SSI


• Raising nursery in portrays using single budded chips
• Transplanting young seedlings (25-35 days old)
• Maintaining wider spacing (5x2 feet) in the main field
• Providing sufficient moisture through efficient water management technologies like drip fertigation
• Encouraging organic method of nutrient and plant protection measures
• Practicing intercropping with effective utilization of land

Overall Benefits
• Improved water use efficiency.
• Optimum use of fertilizers that favour balanced availability of nutrients.
• There is high sugar content in the canes due to better aeration & more penetration of sunlight.
• Reduced cost of cultivation & increased returns through intercropping.

Sugarcane
• It has the largest value of production among all the commercial crops in India.
• It is the first choice of the farmers wherever geographical conditions favour its growth.
• Sugarcane is indigenous to India. It belongs to bamboo family.
• Thickened sugarcane juice is used to make sugar, gur (jaggery) and khandsari.

• 2/3rd of the total sugarcane produced in India is used for making jaggery and khandsari and the rest goes to sugar
8

factories.
• Molasses, bagasse and pressmud are the by-products of sugar industry.
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• Molasses provides raw material for manufacturing alcohol (ethanol).
• It is also an efficient substitute for certain petroleum products.
• Bagasse (cane residue) is used for manufacturing paper and also as fuel in the mills.
• Bagasse is more useful if it is used in paper manufacturing rather than as fuel. (it can help to save trees; as fuel, it is
very inefficient)
• Pressmud is used as soil amendment (compost) to increase fertility of the soil.

Conditions for Growth


Climate

• Sugarcane is predominantly a tropical crop.


• Requires hot (21°-27°C) and humid (75-150 cm) climate.
 (Sugar beet (tuber crop) is the temperate alternative for sugarcane)
• It requires 10 to 18 months to mature depending upon the geographical conditions.
• Too heavy rainfall results in low sugar content & deficiency in rainfall produces fibrous crop.
• Temperature above 20°C combined with open sky in the second half of the crop season helps in acquiring juice and its
thickening.
• Short cool dry winter season during ripening and harvesting is ideal.
• Frost is detrimental to sugarcane.
• It must be harvested before frost season in northern parts where frost is a common phenomenon.
• On the other hand, hot dry winds like “Loo” are hostile to sugarcane. (Both frost and loo are absent in South India.
So south is ideal)
• Coastal plains and western side of Western Ghats are generally avoided as the gusty winds (monsoon winds) damage
the crop.

Soil

• Sugarcane can tolerate any kind of soil that can retain moisture.
• Sugarcane exhausts the fertility of the soil.
• Flat plain or level plateau is an advantage for sugarcane cultivation (facilitates irrigation and transportation of cane
to the sugar mills).
9

Labour
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• Cheap abundant labour is a prerequisite for successful cultivation of sugarcane.

Sugar Crops
• Sugarcane and sugar beet.
Sugarcane
By-products of Sugar Industry
• Molasses, bagasse and pressmud.
• Molasses used for alcohol and yeast formation.
• Bagasse for paper making and fuel.
• Pressmud used as soil amendment.
• Trash (green leaf + dry foliage) — the waste is used for cattle feed.
Sugar beet
• Sugar beet is grown in temperate region.
• It is a tuber crop (Tubers are enlarged structures in some plant species used as storage organs for nutrients - carrot,
radish, potato are tuber crops). Sugar is extracted from the tuber juice.
• Sugar content in sugar beet is quite low compared to that in sugarcane.
• It is grown in temperate region where it can be economical compared to sugar imports.

Sugarcane Crop Area


• Three distinct belts of sugarcane cultivation can be identified in India.

1. Sutlej-Ganga plain from • Low yield


Punjab to Bihar • High summer temperatures ranging from 30° to 35°C leads to low growth and
fibrous crop.
10

• Loo (dry scorching wind in May and June with a desiccating effect) hampers the
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normal growth of the cane.


• In winter months (December and January) the crop is likely to be damaged by
severe cold and frost.
• Crushing cannot be done in winter. (only 8 month crushing season. Factories
remain idle for 4 winter months)
2. Black soil belt from Maha- • High Productivity
rashtra to Tamil Nadu along • No winds like ‘loo’ during the summer.
the eastern slopes of the • Reasonably high temperature during winter.
Western Ghats (to protect • Frost free climate throughout the year.
from high speed monsoon • Yearlong crushing. (factories keep running throughout the year)
winds).
3. Coastal Andhra and the • Maritime winds in the coastal areas moderate climate and lead to better sugar
Krishna Valley content + all points of (2)

Production
• India has the largest area under sugarcane cultivation in the world.
• But in production India lags behind Brazil – world's largest producer of sugarcane.
• Productivity is quite low compared to Columbia, Peru, Indonesia, Egypt, etc.
• Shortages of fertilizers, improper and untimely us of fertilizers, uncertain weather conditions, inadequate irrigation,
poor varieties of cane, small and fragmented holdings and backward methods of cultivation are some of the major
causes of low yields in India (This is common for rice and sugarcane).
• Sugarcane Research Institute, Coimbatore introduced the system of ratooning to reduce the costs of sugarcane
cultivation.
• Ratoon crop is the second or any other successive crop obtained from the roots left over in the field from the first
crop. (Prelims point)
• In this system the sugarcane is cut leaving the root intact in the soil. This is widely practiced in different parts of the
country.
• Advantage of ratooning: Low cost of production, relatively shorter maturation period, low cost inputs and time is
saved as there is no need for fresh sowing and growing of roots.
• However, productivity decreases with each passing year and ratooning becomes uncommercial after one or two years.
Production in 2017-18 (in Million Tonnes)
State Area – Million Hectares Production (MT) Yield – tonnes/hectare
1 Uttar Pradesh 2.2 (47.2%) 177.1 (47%) 79.3
2 Maharashtra 0.9 (19.1%) 83.1 (22.1%) 92.2
3 Karnataka 0.4 (7.4%) 28.3 (7.5%) 80.8
4 Tamil Nadu 0.2 (3.8%) 16.5 (4.4%) 92.0
5 Bihar 0.2 (5%) 14 (3.7%) 59.2
All India 4.7 Mha 376.9 MT 79.7
• Gujarat, Haryana, Punjab, Andhra Pradesh, Uttarakhand, Madhya Pradesh and Telangana are the other major produc-
11

ers.

South India offers more favourable climatic conditions for the growth of sugarcane, but the
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most important sugarcane belt lies in north India. What is the reason for this paradoxical situa-
tion?
• Before the World War I, the northern plain area was mainly used for growing indigo.
• With the introduction of cheap aniline dyes, indigo lost its market by the time of WW I.
• Consequently, indigo’s place was taken by sugarcane cultivation in the north.
Other factors
• Sugarcane needs good irrigational facilities throughout the year. Such facilities were available in the north due to per-
ennial river systems.
• On the other hand, south has only non-perennial rivers. Also, irrigational facilities were previously non-existent in most
parts of the south.
• In the southern states, sugarcane had to face tough competition for land from a number of other cash crops such as
cotton, tobacco, groundnut, coconut, etc.

Do you agree that there is a growing trend of opening new sugar mills in southern states of In-
dia? Discuss with justification (5 marks) (100 words) (2013 GS1)
More sugarcane cultivation = More sugar mills.
• Most favourable weather conditions (loo and frost absent).
• Development of extensive irrigational facilities in the past few decades.
• Yearlong crushing season. (In north, winter = very cold = There is no Crushing period in winter)
• High maritime influence = moderate climate = doesn’t reduce sugar content (very high temperature and low rainfall
leads to fibrous crop).
Uttar Pradesh • Vast alluvial plains
• Large scale use of irrigation and fertilizers
• Suitable climate (but not as suitable as south Indian climate)
• There is no Crushing period in winter.
Maharashtra • Superior sugar recovery due to year round crushing period.
• Yields are high compared to that in UP.
Karnataka • Most of the sugarcane is grown with the help of irrigation.
TN • High productivity (coastal region).
Andhra Pradesh • Coastal areas having fertile soil.
• Bihar, Gujarat (its recovery of 10.31 per cent of sugar is one of the highest among the major sugar cane producing
states of India), Haryana, Uttarakhand (mostly hilly and mountainous – not much suitable.
• However, parts of Haridwar, Nainital and Dehra Dun districts are plain areas or areas located at the foothills), Punjab
(wheat took over the sugarcane regions) are other important producers.

{Agri – In News – 2022/04} System of Rice Intensification


TH | Source1 | Prelims + Mains | GS3 > Types of Irrigation & Irrigation System etc.
• System of Rice Intensification (SRI) is an agro-ecological methodology for increasing the productivity of irrigated rice
by changing the management of plants, soil, water and nutrients.
• Typically, the SRI is used for paddy cultivation to increase yield.
12

• But for the past few years the same technique is being used to increase the harvest of millet, maize, ragi and vege-
tables like brinjal, beans, green chilly.
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Main Idea of SRI


• Rice field soils should be kept moist rather than continuously saturated, minimizing anaerobic conditions, as this
improves root growth and supports the growth and diversity of aerobic soil organisms.
• Rice plants should be planted singly and widely spaced to permit root and canopy growth to keep all leaves photo-
synthetically active.
• Rice seedlings should be transplanted when young, less than 15 days old with just two leaves, quickly, shallowly,
and carefully, to avoid trauma to roots and minimize transplant shock.
• It is aimed at promoting the growth of root systems.

Reported Benefits of SRI


• Increase in yield/ha – 52%
• It uses fewer seeds.
• It Increases the abundance and diversity of soil organisms
• Increased net income/ha – 128%
• Reduction in cost of production – 24%
• Reduction in water requirement – 44%
• Shorter time to maturity (1-3 weeks less)
• Protection against biotic stresses pests/diseases (Sheath blight, leaf folder, brown plant hopper) – 70% reduction in
incidence
• Tolerant to abiotic stresses like drought, storm damage, extreme temperatures

Conventional Rice Management


• It transplants older seedlings, 20-30 days old, or even 40 days old.
• It transplants seedlings in clumps of plants & fairly densely, 50 – 150 plants.
• Maintain paddy soil continuously flooded, with standing water throughout the growth cycle (anaerobic condi-
tions are present).
• It uses water to control weeds, supplemented by hand weeding or use herbicides.
• It uses chemical fertilizers to enhance soil nutrient.

{Agri – Irrigation – 2022/04} Deficit Irrigation Practices


Source1 | Prelims + Mains | GS3 > Different types of irrigation system etc.
• Deficit irrigation (DI) is a watering strategy that can be applied by different types of irrigation application methods.
• In arid and semi-arid regions, water availability is usually limited, and certainly not enough to achieve total crop wa-
13

ter requirement and the maximum yields.


• Then, irrigation strategies should not be based on full crop water requirements but should be adopted for more effec-
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tive and rational use of water based on the critical or sensitive growth stages to water deficit.
• Thus, at non-sensitive growths stages irrigation is withheld which is called as deficit irrigation.
• The correct application of DI requires thorough understanding of the:
a) Yield response to water (crop sensitivity to drought stress)
b) Economic impact of reductions in harvest
c) Knowledge of crop evapotranspiration
d) Identification of critical crop growth stages

Advantages of DI
• It maximizes the productivity of water, generally with adequate harvest quality
• It allows economic planning and stable income due to a stabilization of the harvest in comparison with rainfed culti-
vation
• It decreases the risk of certain diseases linked to high humidity (e.g., fungi) in comparison with full irrigation
• It reduces nutrient loss by leaching of the root zone, which results in better groundwater quality and lower fertilizer
needs as for cultivation under full irrigation;

Types of DI
Regulated Deficit Irrigation (RDI)
• RDI is an optimizing strategy under which crops are allowed to sustain some degree of water deficit & yield reduc-
tion.
• During RDI, the crop is exposed to a certain level of water stress either during a particular period or throughout
the growing season.
• The main objective of RDI is to increase Water Use Efficiency (WUE).
• It is done by eliminating irrigations that have little impact on yield and to improve control of vegetative growth (im-
prove fruit size and quality).
• It allows to cope with water scarcity since the allowed water deficit favours water saving, control of percolation & re-
duction of losses of fertilizers and agrochemicals.
• It provides for leaching requirements to cope with salinity and the optimization approach leads to economic viability.

Partial Root Drying (PRD)


• In PRD irrigation technique, one half of the root system is left to remain dry or under drying conditions while the
other half of the root system is irrigated.
• Wetted and dried sides of the root system alternate on a 7–14-day cycle.
• It uses biochemical responses of plants to water stress to achieve balance between vegetative and reproductive
growth.
• There is improvement of WUE results because of partial stomatal closure & reducing evapotranspiration during
drying period.
• The PRD has been successfully applied with drip irrigation in grapevines.
14
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{Agri – Issues – 2022/01} India Needs a Carbon Policy for Agriculture
IE | Prelims + Mains | GS1 > Climate Change
• Context: Studies have suggested that India needs a holistic policy for its agriculture i.e., towards carbon farming.

What is Carbon Farming?


• Carbon farming refers to sequestering and storing carbon and/or reducing greenhouse gas emissions at farm
level.
• Carbon farming also refers to the business model that aims to upscale climate mitigation by incentivising farmers to
implement climate-friendly farm management practices.
• It involves management of both land & livestock, all pools of carbon in soils, materials and vegetation, plus fluxes of
carbon dioxide (CO2) and methane (CH4), as well as nitrous oxide (N2O).

Agriculture & Greenhouse Gases


• India is the 3rd highest greenhouse gas emitter behind China & United States.
• Agriculture & livestock accounts for 18% of gross national emissions (3rd highest sector after energy & industry).
• Agricultural emissions in India are primarily from the livestock sector (54.6%) in the form of methane emissions.

15
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On what lines India’s carbon policy be structured to reduce agricultural emissions?
• Carbon credits to farmers: Along with reducing emissions in agriculture, farmers should be rewarded with carbon
credits which should be globally tradable.
• Switching to less water intensive crops: Direct seeded rice & alternative wet and dry practices can reduce the car-
bon footprint in rice fields. But the real solution lies in switching areas from rice to maize or other less water-guzzling
crops.
• Using Bio-crops for Bioenergy: Opening up corn for ethanol & rewarding farmers for this switch by making corn
more profitable than paddy, can help not only reduce our huge dependence on crude oil imports but also reduce the
carbon footprint.
• Alternatives of nitrogen fertilizer should be promoted to reduce nitrous oxide emissions from agricultural soils.
• Better feeding practices: India needs better feeding practices with smaller numbers of cattle by raising their produc-
tivity.

Way Forward
• Concepts such as Low External Input Sustainable Agriculture (which seek to optimise the use of locally available
resources replacing external inputs) & Zero Budget Natural Farming (ZBNF) should be adopted.
Mains Practice: Agriculture sector is one of the significant contributors to GHGs. This underscores the importance of carbon
16

policy for agriculture in India. In this context, suggest the steps to be taken under the policy. 250 Words
Additional Reading: Methane | Organic Farming | No Tillage (Nov Month CA) | Zero Budget Natural Farming (Re-
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fer to Env 2021-22)

{Agri – Livestock – 2022/04} Sagar Parikrama


IE | Prelims | GS3 > Economics of Animal Rearing
• Context: The Ministry of Fisheries & Animal Husbandry has recently organised an initiative called “Sagar
Parikrama”.
• It is an endeavour to know the problems of coastal fisherfolk.
• It is aimed at transforming the fisheries sector & formulating fisheries management plans.
• It will focus on the sustainable balance between the utilization of marine fisheries resources for food security of the
nation and livelihoods of coastal fisher communities and protection of marine ecosystems.
• The Parikrama will start from Gujarat as a part of ‘Azadi Ka Amrit Mahotsava’.

{Agri – Marketing – 2022/02} APEDA


PIB | Prelims + Mains | GS3 > Agricultural Marketing etc.
• Context: Agricultural Products Export Development Authority (APEDA) celebrated its 36th Foundation Day today.
• The Agricultural and Processed Food Products Export Development Authority (APEDA) is a statutory Indian Apex-
Export Trade Promotion Active government body established in 1985.
• It comes under Ministry of Commerce & Industry (Not Ministry of Agriculture).
• It aims to create a world class organization dedicated to promote India as the ‘supplier of choice’ of agro and value-
added food products in the global markets.
• It is the premier body of export promotion of fresh vegetables and fruits.
• It provides the crucial interface between farmers, storehouses, packers, exporters, surface transport, ports, Railways,
Airways, and all others engaged in export trade to the international market.
• Keeping in mind Prime Minister call for ‘vocal for local’ and ‘Atmanirbhar Bharat’, it focuses on promotion of ex-
ports of locally sourced Geographical Indications (GI) tagged as well as indigenous, ethnic agricultural products.

{Agri – Renewable Energy – 2022/04} Bioenergy Crops


DTE | Prelims + Mains | GS3 > Sources of Energy
• Context: A new study has found that converting annual crops to perennial bioenergy crops can induce a cooling
effect on the areas where they are cultivated.

What are Bioenergy Crops?


• Bioenergy is defined as energy derived from wood, crops, or animal waste.
• The Bioenergy crops are defined as any plant material used to produce bioenergy.
• Energy crops are low-cost & low-maintenance crops grown solely for energy production by combustion (not for
food).
• The crops are processed into solid, liquid or gaseous fuels, such as pellets, bioethanol or biogas.
• The fuels are burned to generate electrical power or heat.
• Bioenergy crops have the capacity to produce a large volume of biomass, high energy potential, and can be grown in
17

marginal soils.
Bioenergy can contribute to reducing the overall consumption of fossil fuels.
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• Both biomass and biofuels can be derived from dedicated energy crops, agricultural co‐products or waste materials.
Types of Bioenergy Crops
• The bioenergy crops are classified into 5 types namely:
a) 1st Generation Bioenergy crops – Includes corn, sorghum, rapeseed and sugarcane
b) 2nd Generation Bioenergy Crops – Includes switchgrass, miscanthus, alfalfa, reed canary grass, Napier grass
c) 3rd Generation Bioenergy Crops - boreal plants, crassulacean acid metabolism (CAM) plants, eucalyptus and
microalgae.
d) Dedicated Bioenergy Crops - crops grown specifically for use as biomass feedstocks in biorefineries.
e) Halophytes – Plants that are able to survive in and around land or water high in salt content.
Additional Reading: https://www.pmfias.com/biofuels/

{Agri – Schemes – 2022/01} PMFME Scheme


PIB | Prelims + Mains | GS3>Issues related to agriculture marketing etc | GS2 > Govt. policies and interventions
etc.

PM Formalisation of Micro Food Processing Enterprises (PM FME) Scheme


• PM FME is a centrally sponsored scheme with an aim to provide financial, technical, & business support to mi-
cro food processing units in the country.
• The total outlay of the scheme is $ 1.3 Bn spread over a span of 5 years from 2020-21 to 2024-25.
• About 2 lakh micro food processing units will be given credit linked subsidy under the scheme.
• which aims to create product-specific traditional industrial hubs across 75 districts of UP.
• Under the PM FME scheme, the states will be required to identify One Product Per District (Inspired from U.P
Scheme).
• Special preference would be given to micro food enterprises following the ODOP approach.
• Support in the form of common infrastructure & assistance in branding & marketing would be provided.
• The funding under the scheme will be shared by the Centre & State governments:
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1. For States & UTs with legislature: 60% by Centre & 40% by State/ UT
2. Himalayan & North Eastern States: 90% by Centre & 10% by State
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3. UTs without legislature: 100% by the Centre

Objectives of the Scheme


• Formalization of micro units by means of GST, Udyog Aadhar & FSSAI registrations.
• Financial assistance to individual units for upgradation of food processing facilities.
• Quality improvement & skill development through trainings & technical knowledge.
• Financial assistance to Farmer Producer Organizations (FPO), SHGs, producer’s cooperatives for setting up com-
mon infrastructure facilities.
• Branding & marketing support to FPOs, SHGs & producer cooperatives.
• Support & assistance in availing bank loans & preparation of detailed project reports (DPR).

Food Processing
• Food processing is the transformation of raw ingredients of agriculture, dairy, animal, husbandry, fisheries, poultry
into products that have commercial value & are suitable for human & animal consumption.
• It includes both direct manufacturing of food or value addition on existing food (Extension of Shelf Life of Prod-
ucts).
• It involves various processes like washing, chopping, pasteurising, freezing, fermenting, packaging, cooking & many
more.

Scope & Status of Food Processing Industry (FPI) in India

• The Indian food & grocery market are the world’s 6th largest.
• The Indian food processing industry accounts for 32 per cent of the country’s total food market.
• It contributes around
 8.80 & 8.39 per cent of Gross Value Added (GVA) in Manufacturing & Agriculture respectively,
 13 per cent of India’s exports &
 6 per cent of total industrial investment.
• India is the 2nd largest producer of fruits & vegetables after China but hardly 2% of the produce is processed.
• Despite a large production base, the level of processing is low, it is less than 10%.
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• Approximately 2% of fruits & vegetables, 8% marine, 35% milk, 6% poultry are processed.
• India's livestock population is largest in the world with 50% of the world's buffaloes & 20% of cattle, but only
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about 1% of total meat production is converted to value added products.


• More than 75% of the industry is in unorganized sector.
• Processing can be delineated into primary & secondary processing.
1. Rice, sugar, edible oil, & flour mills are examples of primary processing.
2. Secondary processing includes the processing of fruits & vegetables, dairy, bakery, chocolates & other
items.
• Most processing in India can be classified as primary processing, which has lower value-addition compared to
secondary processing.
• There is a need to move up the value chain in processed food products to boost farmer incomes.
• For example, horticulture products carry the potential for higher value-addition when compared to cereals.
• At present, India’s agricultural exports predominantly consist of raw materials, which are then processed in other
countries, again indicating the space to move up the value chain.
• Lack of adequate processable varieties continues to pose a significant challenge to this sector.

Significance of Food Processing Industry (FPI)


• It provides vital linkages & synergies between the two pillars of the economy, i.e., agriculture & industry.
• FPI can absorb major share of workers from agriculture sector, who face disguised unemployment.
• It reduces food wastage as the shelf life of food will be Increased.
• Curbing Food Inflation: again, the reason is same. E.g. frozen peas availability throughout the year.
• Crop-diversification: FPI will require different types of inputs thus creating an incentive to diversify crops.
• Increase in export which in turn will help us in getting foreign exchange reserves. For e.g., Indian Basmati rice is in
great demand in Western countries.
• Employment Generation: It is expected to provide 10 lakhs direct & indirect employment opportunities.
• Reduce malnutrition: Though food fortifications.
• Curbing rural to urban migration: will help in decongestion of cities.
• Choices will be increased: bringing more choices in food basket, food from other parts of the world to be transport-
ed to our local market & vice versa.

Initiatives by Government to promote FPIs in India


Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
• It is a Central Sector Scheme.
• It was earlier known as SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing
Clusters).
• It is an Umbrella Scheme that includes:
1. Mega Food Parks
2. Integrated Cold Chain, Value Addition and Preservation Infrastructure
3. Creation/Expansion of Food Processing/Preservation Capacities
4. Infrastructure for Agro Processing Clusters
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5. Scheme for Creation of Backward and Forward Linkages


6. Food Safety & Quality Assurance Infrastructure
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7. Human Resources and Institutions


8. Agro-Processing Cluster
9. Operation Greens

Atma Nirbhar Bharat announcement for Food Processing sector


Formalisation of Micro Food Enterprises (MFE)

• ‘Vocal for Local with Global outreach’ will be launched to help 2 lakh MFEs who need technical upgradation to at-
tain FSSAI food standards, build brands & marketing.
• Existing micro food enterprises, FPOs, Self Help Groups & Cooperatives to be supported.
• The focus will be on women & SC/ST owned units & a Cluster based approach (e.g. Mango in UP, Tomato in Karna-
taka, Chilli in Andhra Pradesh, Orange in Maharashtra etc.) will be followed.

Other Measures Taken


• A special fund of Rs.2000 crore has been created with NABARD to provide affordable credit to FPI units.
• Food & Agro-Based processing units & cold chain infrastructure has been classified as agriculture activity for Priority
Sector Lending (PSL).
• Fiscal measures like
 100% exemption of Income Tax on profit for new food processing units,
 100 percent income tax exemption from profit derived by FPOs having annual turnover of Rs.100 crore
have been allowed.
• Lower GST rates for majority of food products have been fixed.
• FDI policy: FDI up to 100 %, under the automatic route is allowed in food processing industries
• Agricultural & Processed Food Products Export Development Authority (APEDA)– an apex organization under the
Ministry of Commerce & Industry – focusses on ‘export’ of scheduled products.

Obstacles in the growth of Food processing industries in India


 Indian FPIs are small & cannot compete with global giants because of:
a) Heavy investments by global giants in R&D
b) High packaging cost
c) High cost of advertisements
 Indian FPIs also suffer from:
a) Lack of modern transportation facilities & high-cost Inadequate cold storage facilities
b) Financing
c) Lack of modernization
d) Higher import duties
e) Higher cost of raw material
f) Limited domestic market
g) Continued dependence on seasonal products
 Issues at Farm level
a) Limitations in quality of crops
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b) Lack of storage facilities & good production techniques


c) Lack of material resources necessary for development
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d) No control on the quality of inputs & lack of finance to manage


e) Unavailability of reliable handling & transportation system
f) Lack of storage facilities at farm
 Issues with supply chain
a) Congested roads & snail-paced railways (due to lack of dedicated freight corridors)
b) Limitations in supply chain
c) Lack of modern transportation facilities that can quickly transport perishables and low shelf life products
d) Inadequate cold storage facilities
 Consumer discontent
a) Indian society favours fresh food consumptions
b) Lack of faith in the food safety standards
c) Does not get value for money (cost of the product is high due to inefficiencies in the supply chain)
 Government level issues
a) Lack of right vision & support from government
b) Contract farming laws not properly implemented by state governments
c) Lack of good laboratories in India to check heavy metal & other toxic contamination.

Farmer Producer Organisation (FPO)

What are FPO’s


• They are legalised form of farm owned institutions, which consists of farmer members with common interests and
concerns.
• It can be established in form of producer company, cooperative society or any legal form which provides system for
sharing of profits/benefits among the members.
22

• These institutions are registered under Companies Act, 1956.


Structure of these FPO’s starts with mobilising farmers into group of between 15-20 members at village level called
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as Farmer Interest Group’s (FII) and building up their association as FPO’s where members can go up to 1000 in
some cases.

Why to form FPO’s / Importance of FPO’s


• Benefits of aggregation and economies of scale.
• Helps small and marginal farmers (85%), who do not have the volume individually (Both inputs and produce).
• Better bargaining power.
• Avoiding long chain of intermediaries.
• Reduction of transportation cost.
• Better market information
• Better storage of produce.

Government Initiatives for FPO’s


Formation & Promotion of 10,000 FPO’s Scheme

• It is a central sector scheme under Agriculture Ministry.


• Financial Assistance is provided under it:
1. Up to 18.00 lakh per FPO for a period of 03 years.
2. Equity Grant up to Rs. 2,000 per farmer member of FPO with a limit of Rs. 15.00 lakh per FPO.
3. Credit guarantee facility up to Rs. 2 crores of project loan per FPO.
• To provide guidance, coordination, compilation of information relating to FPOs National Project Management
Agency is established.
• Formation & Promotion of FPOs are to be done through 9 Implementing Agencies (IAs).
• Some of the IA’s are:
1. Small Farmers Agri-Business Consortium (SFAC)
2. National Cooperative Development Corporation (NCDC)
3. National Bank for Agriculture and Rural Development (NABARD)
4. National Agricultural Cooperative Marketing Federation of India (NAFED)
• Implementing Agencies (IAs) are engaging Cluster-Based Business Organizations (CBBOs) to aggregate, register &
provide professional handholding support to each FPO for a period of 5 years.
• CBBOs will be the platform for an end-to-end knowledge for all issues related to FPO promotion.

Some other Initiatives

• NABARD created its own subsidiary NABKISAN for meeting credit requirements of FPO.
• Equity Grant Scheme providing 10 lakhs to each registered FPO.
• 100% tax deduction for FPO’s with annual turnover up to 100 crores.
• FPO’s have been on-boarded and integrated on e-NAM portal.
• National Rural Livelihood Mission also supports FPO.

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{Agri – Schemes – 2022/02} Agriculture Technology Management Agency (ATMA)
Scheme
PIB | Prelims + Mains | GS3 > Technology mission etc.

What is Agricultural Technology Management Agency (ATMA)?


• It is an autonomous institution set up at district level to improvise various skills & transfer of new technologies to
farmers not only in Agricultural field but also in other allied departments like Animal Husbandry, Horticulture,
Fisheries and Sericulture.

Key Features of Scheme


• It was launched during 2005-06.
• It is a centrally sponsored scheme.
• It aims to impart technical knowledge on a broad scale to the farmers in getting fruitful results and better per unit
income.

Objectives
• To ensure an integrated, broad-based extension delivery mechanism consistent with farming system approach with a
focus on bottom-up planning process.
• To adopt group approach to extension
• To facilitate convergence of farmer centric programmes in planning, execution and implementation.
• Encourage multi-agency extension strategies involving public/private extension service providers.
• Address gender needs and concerns.

{Agri – Schemes – 2022/02} Gobar Dhan Scheme


ET | Prelims + Mains | GS3 > Storage, transport & marketing of agricultural produce etc.
• Context: The Jal Shakti Ministry on Wednesday launched a unified portal on the 'Gobardhan' scheme.

Key Features
• It was launched in 2018 as a part of the Biodegradable Waste Management component under Swachh Bharat Mis-
sion (Grameen) (SMB-G).
• The main focus of GOBAR-Dhan is to keep villages clean, increase the income of rural households, and generate ener-
gy and organic manure from cattle waste.
• It was launched by Ministry of Drinking Water & Sanitation.

Benefits of GOBAR-Dhan
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• GOBAR-Dhan helps in managing a major portion of solid waste in villages i.e cattle dung and agricultural waste and
promote environmental sanitation.
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• Substantially reduces vector-borne diseases and promotes public health.


• Promotes household income and saving as the use of biogas reduces the expenditure on LPG.
• Helps in generating organic manure which enhances agriculture and farm productivity.
• Promotes employment and income generation opportunities for SHGs/ farmers groups.
• Helps in reducing carbon emission and promotes environmental sustainability.
• Helps to save foreign exchange by reducing the need for the import of natural gas.

{Agri – Subsides – 2022/02} Fair and Remunerative Prices (FRP)


IE | Prelims + Mains | GS3 > Food Security | GS3 > Issues related to direct and indirect farm subsidies and MSP
• Context: Maharashtra’s Maha Vikas Aghadi (MVA) government issued a government resolution which will allow sug-
ar mills to pay the basic fair and remunerative price (FRP) in two tranches.

What is FRP?
• Fair and Remunerative Price or FRP is the price required to be paid by sugar mills and factories to sugarcane farm-
ers.
• Sugar mills are required to pay the FRP/SAP to sugarcane farmers irrespective of market prices.
• Sugarcane prices are governed by the Sugarcane (control) order, 1966 issued under the Essential Commodities Act
(ECA), 1955.
• The FRP and SAP are prices set by the governments.
• It was introduced in 2009 and replaced the concept of Statutory Minimum Price (SMP).
• Under the FRP system, the price paid to farmers for sugarcane is not linked to the profits generated by sugar mills.
• Instead, FRP is based on the recovery rate of sugar from sugarcane.
• Mills are required to pay the basic FRP within 14 days of purchase of sugarcane from growers.
• Cabinet Committee on Economic Affairs approves the FRP on the recommendations of Commission for Agricul-
tural Cost & Prices (CACP).

How is Fair and Remunerative Price calculated?


• FRP is fixed by the central government in consultation with state governments.
• Factors that are taken into account for calculating FRP are:
 Sugar recovery
 Cost of production of sugarcane
 General trend of agricultural commodities’ prices
 Availability of sugar to consumers at a fair price.
• Reasonable margins for sugarcane growers are also to be taken into consideration, as per the amended provisions of
the Sugarcane (Control) Order, 1966.

What is the State Advised Price?


• State Advised Price or SAP is the price announced by the state government, over and above the FRP.
• Since sugar pricing comes under the concurrent list, the Supreme Court has held that both the centre and the state
have the power to fix sugarcane prices.
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• While the centre’s price is the minimum price, states can set an SAP that will always be higher than the centre’s FRP.

How are FRP and SAP different from MSP?


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• FRP and SAP are different versions of the price for sugarcane that need to be paid by the mills to farmers.
• While MSP is the assured price of sugar for mills.
• Prices of sugar are usually market driven.
• But to ensure that the industry gets, at least, the minimum cost of sugar production so as to clear cane price dues to
farmers, the concept of sugar MSP has been introduced since 2018.

{Agri – Subsidies – 2022/02} MSP for Different Crops


PIB | IE | Prelims + Mains | GS3 > Food Security | GS3 > Issues related to direct and indirect farm subsidies and
MSP

Minimum Support Price (MSP)


• Minimum support price (MSP) is a “minimum price” for any crop that the government considers as remunerative for
farmers and hence deserving of “support”.
• It is also the price that government agencies pay whenever they procure the particular crop.
• Simply, the MSP is the rate at which the government buys grains from farmers.

26
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27
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• The MSP is fixed by the Central government (i.e., Cabinet Committee on Economic Affairs) on the recommenda-
tions of the Commission for Agricultural Costs and Prices (CACP).
• The government is not legally bound (not statutory mandated) to pay these even if open market rates for the said
produce are ruling below their announcement floor prices
• The Food Corporation of India (FCI), the nodal agency, along with other State Agencies undertakes procurement
of crops.
• Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corpo-
ration of India (JCI).
• Different types of nutri-cereals and maize are procured by State Governments itself in consultation with FCI.

The Centre currently fixes MSPs for 23 farm commodities


1. 7 cereals (paddy, wheat, maize, bajra, jowar, ragi and barley),
2. 5 pulses (chana, arhar/tur, urad, moong and masur),
3. 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower and nigerseed) and
4. 4 commercial crops (cotton, sugarcane, copra and raw jute).
5. In addition, MSP for toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed & mustard and
copra respectively.

Factors taken into consideration for fixing MSP include


1. Supply and demand situation for the commodity
2. Market price trends (domestic and global)
3. Parity vis-à-vis other crops
4. Cost of production (A2 + FL method)
5. Implications for consumers (inflation)
6. Environment (soil and water use) and
7. Terms of trade between agriculture and non-agriculture sectors.
• The MSP assures the farmers of a fixed price for their crops, well above their production costs.
• The Union Budget for 2018-19 had announced that MSP would be kept at levels of one and half times (1.5
Times) of the cost of production.
• Government has increased the MSP for all mandated Kharif, Rabi and other commercial crops with a return of at
least 50% of cost of production for the agricultural year 2018-19 and 2019-20.

How was this production cost arrived at?


• The CACP does not do any field-based cost estimates itself.
• It merely makes projections using state-wise, crop-specific production cost estimates provided by the Directorate of
Economics & Statistics in the Agriculture Ministry.
• The latter are, however, generally available with a three-year lag (mains point – issues with MSP).
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• The CACP further projects three kinds of production cost for every crop, both at state and all-India average levels.
1. ‘A2’ covers all paid-out costs directly incurred by the farmer —in cash and kind — on seeds, fertilisers, pesticides,
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hired labour, leased-in land, fuel, irrigation, etc.


2. ‘A2+FL’ includes A2 plus an imputed value of unpaid family labour.
3. ‘C2’ is a more comprehensive cost that factors in rentals and interest forgone on owned land and fixed capital as-
sets, on top of A2+FL.
• CACP considers both A2+FL and C2 costs while recommending MSP.
Note: MSP for all the goods have increased (although not substantially) in the last 5 years. A statement like this
can be asked in prelims.

About Commission for Agricultural Costs & Prices (CACP)


• The CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.
• The CACP recommends the MSPs of the notified Kharif and Rabi crops to the Cabinet Committee on Economic
Affairs (CCEA).
• It was formed in 1965.
• It is a statutory body.
• It also motivates cultivators and farmers to adopt the latest technology.
• Its suggestions are not binding on the Government.

{Agri – Tech – 2022/02} Kisan Drones


TH | Prelims + Mains | GS3 > e – technology in the aid of farmers
• Context: Recently 100 'kisan drones' were launched in different parts of the country for spraying pesticides and other
farm materials.
• The Kisan drone will have an unmanned tank filled with insecticides and nutrients.
• The drones are expected to have a high capacity of 5 to 10kg.
• The drone will spray the same amount of pesticide on about one acre of land in just 15 minutes.
• This will save time, will require less effort and spraying will be done uniformly.
• They will also be used to carry vegetables, fruits, fish, etc to the markets from the farms.
• Agricultural items will be supplied directly to the market with minimal damage, consuming lesser time, resulting in
more profits to farmers and fishermen.
Suggested Reading: Drones in Pesticide Application ( Refer to Agri- Dec 2021 CA)

{Agri – Tech – 2022/05} Direct Seeding of Rice (DSR)


TH | IE | Prelims + Mains | GS3 > Agriculture | Environmental Conservation
• Context: Recently Punjab government announced an incentive for farmers opting for Direct Seeding of Rice (DSR).

What is Direct Seeding of Rice (DSR)


• Direct seeding of rice refers to the process of establishing a rice crop from seeds sown in the field rather than by
transplanting seedlings from the nursery. There are three principal methods of direct seeding of rice (DSR):
 Dry seeding (sowing dry seeds into dry soil).
 Wet seeding (sowing pre-germinated seeds on wet puddled soils).
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 Water seeding (seeds sown into standing water).


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Advantages of Direct Seeding of Rice over Transplanted Rice (TPR)


• Direct seeding of rice (DSR) has the potential to provide several benefits to farmers & the environment over conven-
tional practices of puddling & transplanting. Advantages include:
1. Labour efficiency (1-2 days vs. 25-30 days for TPR).
2. More efficient water uses & higher water stress tolerance.
3. Sowing can be done in a stipulated time frame because of easier & faster planting.
4. DSR crops are faster & easier to plant (conducive to farm mechanisation).
5. Early crop maturity by 7-10 days which allows timely planting of subsequent crops.
6. Less methane emission: DDS (dry direct seeding) < WDS (wet direct seeding) < TPR (Transplanted rice 
field flooded with water  more anaerobic conditions  more methanogens).
7. Maintain better soil physical properties: It resolves edaphic (influenced by soil) conflicts (between rice & the
subsequent non-rice crop) & enhances the sustainability of both the rice-wheat cropping system & succeeding
winter crops.
8. Higher economic returns.

Constraints associated with DSR


1. Weeds are the most important constraint to the success of DSR.
2. The practice of direct seeding on large scale increases herbicide use for weed control in rice, which slowly results
in the appearance of resistance in weeds against certain herbicides.
3. Increase in soil-borne pathogens such as nematodes.
4. Higher emissions of nitrous oxide: aerobic soil conditions can also increase Nitrous oxide (N2O) emissions.
5. Nutrient disorders, especially N & micronutrients.

Possible Solutions
1. Integrated weed management as well as biotechnological & genetic approaches.
2. Systematic weed monitoring programme.
3. Biocide use for nematode control.
4. Prefer slow-release N fertilizers (neem coated Urea), nitrification inhibitors & split application of N.
5. The development of new rice varieties for direct seeding.

Prelims Practice: Which of the following is/are the potential benefits of adopting Direct Seed-
ing of Rice (DSR)
1. Groundwater conservation.
2. Reduction in methane emission.
3. Lesser emissions of nitrous oxide.
4. Higher weed resistance.
Select the correct answer using the code given below.
a) 1 & 2 only
b) 1, 2 & 3 only
c) 1, 2 & 4 only
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d) All of the above

Explanation:
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• DSR provides efficient water use & higher water stress tolerance, hence it will help in groundwater conversation.
Along with that, it will reduce methane emission: DDS (dry direct seeding) < WDS (wet direct seeding) < TPR
(Transplanted rice).
• Aerobic soil conditions in DSR can increase Nitrous oxide (N2O) emissions & Weeds are the most important con-
straint to the success of DSR. Hence option (a) is the correct answer.

Answer: (a)

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