Agriculture_1731578693

AGRICULTURE PART I
AGRICULTURE - I
Introduction
● Agriculture is the art and science of cultivating the soil, growing crops and raising
livestock
● Includes preparation of plant and animal products for people to use and their distribution to
markets
● Agriculture occupies key positions in all economies irrespective of their level of development. It
supplies:
○ Foodgrains such as rice, wheat, coarse cereals and pulses
○ Commercial crops such as oilseeds, cotton, jute and sugarcane
○ Plantation crops such as tea, coffee and rubber
○ Horticultural crops such as fruits, vegetables, flowers, spices, cashew nuts and
coconut
● Certain allied activities such as milk and dairy products, poultry products and fishery are also
included in agricultural sector
● Most developed and industrialised countries received their initial spurt for industrial
advancement from agriculture
Few facts related to Agriculture sector

Share in GDP
● As per Provisional Estimates of Annual of National Income, released by National Statistical
Office (NSO), Ministry of Statistics and Programme Implementation on 31st May 2021, share of
Agriculture and Allied Sectors in Gross Value Added (GVA) of country during last three years
at current prices is given below.
Year Percentage Share of GVA of

Agriculture and Allied sector to Total
Economy
2018-19 17.6
2019-20 18.4
2020-21 20.2
2021-22 18.8%
2022-23 18.3%
● As per Economic survey 2021-22, the share of the sector in total GVA of the economy has a
long-term trend of around 18 per cent.
● Among agriculture and allied sectors, crops have the highest share in agriculture GDP followed
by livestock, forestry and fishing.
Growth
● In recent years, the agriculture sector has displayed an improved growth rate, with an average
annual growth rate of 4.18% at constant prices over the last five years.
● However, the growth rate of the agriculture sector stood at 1.4% in 2023-24, which is below
the 4.7% growth rate registered in agriculture in 2022-23.
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AGRICULTURE PART I
(Growth of Agriculture & Allied Sectors: Economic Survey 2023-24)
Share in Workforce
● Share of workforce engaged in agriculture has been declining over the years
● As per census 2011, 54.6% of total workforce is engaged in agriculture (including both
cultivators and agricultural labourers)
○ Decline from 2001 when 58.2% of the total workforce was engaged in agriculture.
● Migration of agricultural labour from rural to urban areas is a general phenomenon and a natural
part of development process
○ Reasons for this shift include, better employment opportunities in industry and
services, increasing urbanisation, low income in agriculture etc
● But, 70% of rural households are still dependent on agriculture
Crop production
● As per 3rd advance estimates of production of major crops for agricultural year 2022-23
released by Ministry of Agriculture and Farmers’ Welfare,
○ Total foodgrains production- 330.5 Million Tonnes (MT)
■ Rice (135.5 MT)>Wheat (112.7 MT)>Millets (54.7 MT)> Maize (35.9 MT)
○ Total pulses production- 27.5 MT (Highest production- Gram)
○ Oilseeds production- 41 MT
■ Soybean>Rapeseed and Mustard> Groundnut
○ Sugarcane production- 494.2 MT
● As per third advance estimates for the year 2021-22, horticulture production increased to
342.33 MT which is the highest ever production for Indian horticulture.
● Share of the crops sector in Agriculture GVA has reduced from 61.75% in 2014-15 to
55.28% in 2022-23.

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AGRICULTURE PART I
(Trend of production of major crops: Economic Survey 2022-23)
Agricultural exports
● In 2021-22, India exported agricultural products worth USD 50 Billion for first time
○ India accounted for 2.33% of the global exports
○ India was 8th largest exporter of agricultural products in 2021-22
● India is net exporter of agricultural products
○ Major agricultural exports from India include rice (both basmati and non-basmati),
marine products, sugar, spices, buffalo meat, raw cotton
○ Top 5 commodities in 2021-22 were Rice, Marine Products, sugar, spices and
buffalo meat (arranged in order of their respective export value)
● Indian agricultural/horticultural and processed foods are exported to more than 100
countries/regions with USA as largest export destination during 2020-21, followed by other
destinations like China, Bangladesh, UAE, Vietnam, and Saudi Arabia
● India is world’s largest producer of milk, pulses and jute, and
○ ranks as second largest producer of rice, wheat, sugarcane, groundnut, horticulture
products and cotton
○ India is also one of the leading producers of spices, fish, poultry, livestock and
plantation crops
Few facts related to allied sectors

Livestock sector
● Contribution of the Livestock sector in Agriculture GVA has increased from 24.3% in 2014-15
to 30.23 % in 2022-23.
● Dairy sector is most critical component of livestock sector, employing more than eight
crore farmers directly
● India ranks first in milk production in world, comprising nearly 24% of the global
production
● India ranks third in egg production and eighth in meat production in world
Fisheries sector
● Contribution of Fisheries in Agricultural GVA is 7.25% (2022-23).
○ India is second largest fish producing country in world and accounted for 7.56% of
global production
Facts related to Food Processing Sector

● Food processing refers to variety of industrial operations by which raw foodstuffs are made
suitable for consumption, cooking, and storage
● Contribution of food processing sector has increased continuously with average annual
growth rate of 8.3% in last 5 years
● Share of Agri-food exports in India’s total exports was 10.9% in the year 2021-22
Agriculture development in India- Green Revolution

● At independence, about 75% of country’s population was dependent on agriculture
● Productivity in agricultural sector was very low because of use of old technology and absence of
required infrastructure for vast majority of farmers
○ India’s agriculture vitally depends on monsoon and if monsoon fell short farmers were
in trouble unless they had access to irrigation facilities which very few had
● India was a major importer of foodgrains as it was not self-sufficient before the Green
revolution. India was importing 10 Mt of food grains under PL-480 scheme
○ After independence, India relied on food crop supplies from United States under Public
Law 480 (PL-480) against rupee payments

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AGRICULTURE PART I
○ Increasing dependence on food from the U.S during Indo-Sino(1962), Indo-Pak(1965)

war along with two successive famines (1965-66) further aggravated the situation.
○ US suspended food supplies temporarily at time when India was facing severe drought
conditions and was not self-sufficient in food
● Green Revolution helped India achieve food self-sufficiency and tripled food-grain
production in about three decades (from 1968 to 2000)
Green Revolution
● Refers to substantial increase in grain yield obtained by plant breeders by
developing new crop varieties
● High yielding varieties of wheat and rice have been the key elements in green revolution
● Specifically, “green revolution” refers to wheat and rice but some agricultural scientists even
include maize, soybean and sugarcane where spectacular gains in yield have occurred
● These HYV seeds were developed by US agro-scientist Norman Borlaug by early 1960s
Background
● In 1960s, India was on the verge of a famine
● Hence, Prof. Norman E. Borlaug was invited from Mexico in 1963 by Government of India to
assess possibilities of using dwarf varieties in India
● On his recommendation two semi dwarf varieties namely Lerma Rajo and Sonora-64 were
chosen and were released for cultivation in irrigated fields
● In 1970 he was awarded Nobel prize for “Green Revolution” which helped India
● MS Swaminathan is known as ‘Father of Indian Green Revolution’ for developing cross
between semi-dwarf Mexican wheat (high yielding and responded to fertiliser and irrigation) and
Indian wheat (disease resistant and good grain quality) which resulted in high yielding and
disease resistant varieties of wheat
○ Some important revolutionary varieties are ‘Kalyan Sona’, ‘Sonalika’ and ‘Sharbati
Sonora’ etc
Components of the Green Revolution

● HYV seeds
○ Popularly called ‘dwarf ’ variety of seeds
○ Developed by Norman Borlaug which helped in supply of delivery of nutrients to
different parts of plant which works in favour of grain
● Chemical fertilisers
○ These HYV seeds require higher level of nutrition which could not be supplied with
traditional composts due to low nutrient content. That is why these seeds require
higher concentration fertilisers/chemical fertilisers
● Irrigation
○ For controlled growth of crops and adequate dilution of fertilisers, a controlled means
of water supply was required
● Chemical pesticides and germicides
○ As new seeds were new and non-acclimated to local pests, germs and diseases than
established indigenous varieties, use of pesticides and germicides became compulsory
for result-oriented and secured yields
● Chemical herbicides and weedicides
○ To prevent costly inputs of fertilisers not being consumed by herbs and weeds in the
farmlands, herbicides and weedicides were used while sowing the HYV seeds
● Availability of credit
○ These inputs- HYV seeds,fertilisers, pesticides,weedicides are costly and hence
availability of easy and cheaper credit became a must for farmers

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AGRICULTURE PART I
Phases of Green Revolution

First phase (1966-72)
● Farmers who could benefit from HYV seeds required reliable irrigation facilities as well as
financial resources to purchase fertiliser and pesticide
○ As a result, use of HYV seeds was restricted to more affluent states such as Punjab,
Andhra Pradesh and Tamil Nadu
○ Further, use of HYV seeds primarily benefited wheat growing regions only
Second Phase (1973-80)

● Extension of HYV technology from wheat to rice, favoured by growth of tube wells, spread
green revolution to new areas, marking new phase in expansion of domestic production
● From 1972-73 to 1979-80, production as well as yields of food grains showed remarkable
growth, at 3.1% 2.5%, respectively, and rural poverty declined from roughly 56% to 50%
Third Phase (1981-90)

● In 1980s, India consolidated its status as a food self-sufficient country
● During this phase, HYV technology spread eastward to states like West Bengal and Bihar, which
experienced surpluses in rice, with output over 1980s growing at 5.0 and 3.7%, respectively
● In rest of the country green revolution ran out of steam by 1985 once new seed varieties had
been widely adopted in main producing regions
○ With HYV technology exhausting its impact in the mid-1980s, input subsidies were
steadily increased to continue sustaining food grain production growth
Impact of Green Revolution in India

Impact on farmers
Big farmers Small farmers
Faster adoption of HYV seeds due to Slow adoption of HYV seeds

higher purchasing power and access to
credit
Rapid increase production and Little increase production and productivity

productivity
Decrease in dependency ratio Increase in dependency ratio
Multiplication of immovable assets and Decrease in immovable assets and decline in

Improvement in standard of living (Big standard of living (Small farmers became poor)
farmers became rich)
Polarisation of rural society Small farmers united
Positive Impacts
● Increase in production of foodgrains
○ Introduction of green revolution has resulted in phenomenal increase in production of
foodgrains especially that of wheat and rice
○ Helped India to shed its “begging bowl” image due to drastic reduction in import of
food grains and has paved way for self-sufficiency in food grains
● Change in nature of agriculture
○ Enabled Indian agriculture to change from subsistence based to market-based
○ Made agriculture a profitable activity
○ Altered traditional classification of food crops and commercial crops
■ Farmers of Punjab, Haryana are growing wheat and rice as commercial crops

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AGRICULTURE PART I
● Benefits for Industrial sector

○ Strengthened forward and backward linkages between agri and industry sector
○ Brought large scale farm mechanisation which created demand for machines like
tractors, threshers etc
○ Increased demand for fertilisers, pesticides, insecticides giving impetus to
industries producing these items
○ Overall growth of agricultural sector increased purchasing power which increased
production in consumer-based industries
Negative impacts
● Increase in disparities
○ Widening gap between small and large farmers
○ Increased interpersonal and inter and intra regional inequalities in India
○ For example,
■ Agricultural income of farmers of Punjab, Haryana and Western UP has gone
up tremendously while that of Rajasthan, Bihar, Maharashtra, Odisha and
North Eastern states have not shown substantial increase
■ Large, progressive and educated farmers have gained much from HYV seeds,
while small, marginal and illiterate farmers could achieve limited success
● Cropping pattern imbalances
○ Diverted their lands for cultivation of wheat and rice due to increased production;
Caused lower cultivation of coarse cereals, pulses and oilseeds
○ For example,
■ In Punjab and Haryana, maize and jowar areas have been encroached by paddy
crops which is giving more returns to the farmers
○ Major commercial crops like cotton, jute, sugarcane are almost untouched
○ Rice-wheat cultivation has hazards of monoculture, leads to micro-nutrient deficiencies
in soil
● Increase in social tension
○ Rise in income gap of small and large farmers led to polarisation in rural society.
○ Green revolution has destroyed traditional institutions of reciprocal aid system which
bonded cultivators during the times of distress
○ After green revolution, incidences of rural violence have increased, social scientists
have termed this a ‘red face’ of the green revolution
● Ecological impacts
○ Soil degradation
■ Due to repetitive kind of cropping pattern being followed by farmers as well as
excessive exploitation of land
■ Excessive use of chemical fertilisers leads to decay of microorganisms causing
decline in natural fertility of the soil
○ Depletion of Groundwater table
■ HYV seeds required comparatively very high amount of water for irrigation
■ Paradigm shift in cropping pattern is responsible for groundwater depletion
■ Example: Rice has entered into cropping pattern of semi-arid regions of
Punjab, Haryana and Rajasthan
○ Environmental degradation
■ Excessive and uncontrolled use of chemical fertilisers, pesticides and
herbicides have degraded environment by increasing pollution levels in land,
water and air
■ Expansion of agriculture has been at cost of forests and pasture lands. This has
depleted tree and grass cover and has given rise to problems of soil erosion
and reduction in biodiversity
○ Health hazards

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AGRICULTURE PART I
■ Unbridled use of chemical pesticides and weedicides and their industrial

production combined together had polluted the land, water and air to such an
alarmingly high level that whole food chain had been a prey of high toxicity and
is not fit for human consumption
Second Green Revolution

● The Second Green Revolution is a change in agricultural production widely thought necessary to
feed and sustain the growing population on Earth. These calls came about as a response to rising
food commodity prices and fears of peak oil, among other factors.
○ Used to describe future widespread adoption of genetic engineering of new food
crops for increased crop yield and nutrition
Evergreen revolution in India

● Refers to productivity improvement in perpetuity without ecological and social harm
● Involves integration of ecological principles in technology development and dissemination
● Dr.M.S.Swaminathan coined term ‘’Evergreen Revolution” to highlight pathway of increasing
production and productivity in manner such that short and long term goals of food production
are not mutually antagonistic
● Includes sustainable agricultural practices such as
○ Replacing chemical fertilisers by biofertilizers
○ Replacing chemical pesticides by bio pesticides
○ Conservation of water and proper crop combinations
● Includes adoption of suitable cropping patterns, crop diversification, crop management, checking
pre- and post-harvest losses, integrated pest management and soil conservation
Cropping Pattern
● Reflects proportion of land under different crops at a given point of time and changes in their
distribution over a period of time
● Combination of crops which farmers opt for in a particular region
● Indicates temporal and spatial arrangement of crops in a particular area
○ Temporal arrangement indicates yearly sequence of growing different crops
○ Spatial arrangement indicates arrangement of crops on a piece of land in various
patterns
Features of cropping system in India

● Almost every kind of crop is grown in India as India has wide variety of soils
● Horticulture crop production has overtaken total food grain production in India
○ Besides these medicinal plants, fruits, flowers and vegetables are also getting special
attention due to their demand in food processing and export potential
● Plantation crops are confined to limited parts of country because they require huge capital and
large tracts of land
○ Thus production of oilseeds is now encouraged by government through various
initiatives like Integrated Scheme of Oilseeds, Pulses, Maize and Oil palm (ISOPOM)
● Within broad group of food crops, cereals like wheat and rice dominate
○ This is due to better prices, less risk in production, availability of better seeds and
Minimum Support Price
● There is a decline in coarse cereals like jowar, bajra, millets etc
○ This is due to spread of irrigation facilities, improved inputs and shift in consumption
patterns of people

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AGRICULTURE PART I
Significance of cropping pattern

● Helps in enhancing soil fertility - Growing of different crops such as nitrogen fixing
leguminous crops can help to enhance nitrogen content of soil. Growing millets can help to
enhance soil organic content
● Encourage diverse biodiversity - Encourages biodiversity by providing habitat for a variety
of insects and soil organisms
● Controls pest and insect growth - Reduces homogeneity of farms. Heterogeneity increases
barriers and reduces likelihood that specific weed species will become adapted to system and
become problematic
● Use resources more effectively- Multiple activities, if properly planned, lead to better
utilisation of resources. Example: Fodder crops can be used for livestock feed, animal dung can
be used as organic manure and dairy products help to enhance farmer’s income
● Reduce risk for crop failure- Different crops have different responses to the climate vagaries
and varied degree of response to disease attack. Due to such heterogeneity, the risk of total
crop failure is reduced
● Improved food and financial security- By reducing risk of crop failure & diversifying income
opportunities for farmers, properly designed cropping system improves food and financial
security
Types of cropping pattern

● Monocropping
○ Refers to growing only one crop on a piece of land year after year. May be due to
climatic and socio-economic conditions or due to specialisation of farmer in growing
particular crop
○ Example: Cotton is grown year after year due to limited rainfall
● Multicropping
○ Practice of growing two or more crops in same field in an orderly succession
within given year
○ Multiple cropping further can be categorised as mixed-cropping, inter-cropping and
sequence cropping
● Mixed cropping
○ Under two or more crops are grown in same field simultaneously without
any definite row arrangement
○ Seeds of different crops are mixed in certain proportions and are then sown
○ Mostly found in dry regions of India and is practised to fulfil family consumption.
○ Example: Sorghum, pearl millet and cowpea are mixed and sown in rain-fed conditions
● Inter cropping
○ Growing two or more crops simultaneously with distinct row arrangement on
same field at same time
○ Alley Intercropping
■ Variant of intercropping in which food crops are grown in alleys formed by
hedge rows of trees or shrubs
○ Relay Intercropping
■ Growing two sets of inter-crops one after another

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AGRICULTURE PART I
Advantages of Intercropping
● Helps in better utilisation of resources like light, nutrients and water
● Intercropping of compatible plants also encourages biodiversity for a variety of insects
and soil organisms that would not be present in a single-crop environment
● Helps in controlling weeds and increases yield stability. Even if one crop fails due to
any reason another crop will give yield and provide income to the farmer
● Successful intercropping gives higher yields for both the crops (yield of base crop +
yield of Intercrop)
● Reduces pest and disease incidences and thus improves soil health
● Sequential cropping
○ Two or more crops are grown in a sequence on same piece of land in a year. Next
crop is planted after previous crop has been harvested
● Relay cropping
○ Seeds of another crop are sown before previous crops are harvested in that
field
● Ratoon cropping
○ Root or lower part of crop is left uncut at the time of harvest
○ Crop regrows out of the root
○ Cost of inputs decreases and less effort is required in preparing field. However,
productivity decreases after every cycle
○ Sugarcane, banana and pineapple are grown through ratoon cropping
Factors that determine cropping pattern in India

● Geographical factors: Soil, landforms, temperature, precipitation, moisture, altitude, etc
● Socio-cultural factors: Food habits, festivals, tradition, etc
● Infrastructure factors: Irrigation, transport, storage, trade and marketing, post-harvest
handling and processing, etc
● Economic factors: Financial resource base, land ownership, size and type of land holding,
household needs of food, fodder, fuel, fibre and finance, labour availability, etc
● Technological factors: Improved varieties of seeds and plants, mechanisation, plant
protection, access to information, etc
● Pricing structure: includes output and input prices as well as trade policies and other
economic policies that affect these prices either directly or indirectly. (like Minimum Support
Price)
Division of crops
Based on End use
● Food Crops- Grown as food for consumption by family itself. Example: wheat, rice, jowar etc
● Cash Crops- Especially used for profit rather than consumption by family. Consist of food like
tobacco, tea, coffee, cardamom, fruits and vegetables, grains, etc
● Horticulture- Science and art of growing and caring for plants, especially flowers, fruits, and
vegetables
● Plantation crops- Usually cultivated as a single crop on an extensive scale in a large
contiguous area, owned and managed by an Individual or a company. Are high value commercial
crops of greater economic importance & includes tea, coffee, rubber, cocoa, coconut, arecanut,
oil palm, cashew, cinchona etc
Based on Seasons
● Kharif Season- Largely coincides with Southwest Monsoon and corresponds to the rainy
season

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AGRICULTURE PART I
● Rabi season- Begins with onset of winter in Northern India. Low temperature conditions
during this season facilitate cultivation of temperate and subtropical crops such as wheat, gram
and mustard
● Zaid season- Short duration summer cropping season beginning after harvesting of rabi crops
and before sowing of Kharif crops. Cultivation of watermelons, cucumbers, vegetables and
fodder crops during this season is done on irrigated lands
Issue of stubble burning

● Paddy/rice is cultivated every year in Punjab, Haryana and Uttar Pradesh as kharif crop
● During September and October, farmers of these states burn paddy residue (stubble) left
from kharif cultivation for sowing wheat in upcoming winter season
● Results in thick smog, high particulate matter density and air pollution in Delhi-NCR region
● Also kills microorganisms present in soil and affects soil fertility
Why do farmers burn stubble?
● Lack of alternatives to deal with stubble effectively
● Unaware of adverse effects of stubble burning on environment
● Small and marginal farmers do not have enough money to buy equipment that can handle
stubble
● Fines and penalties are often not implemented properly due to vote-bank politics
Ways of managing stubble
● In-situ
○ Using Bio-decomposers to convert stubble into manure. Example- Pusa bio-
decomposer
○ Providing agricultural machines and equipment to farmers at subsidised rate for in-
situ crop residue management. Example- Happy Seeder machines
○ Converting stubble into vermicompost
○ Using stubble for mulching and as a ‘cattle fodder’
● Ex-situ
○ Encouraging companies to collect stubble for their use. Example- thermal power
plants, Compressed Biogas plants, Paper and cardboard making companies
● Change in cropping pattern
○ Short duration HYV seeds of paddy should be promoted so that farmers have
enough time to manage stubble after harvesting of paddy crops
○ Crop diversification programmes should be promoted to divert paddy to alternate
crops
Various measures being taken to curb stubble burning
● National Green Tribunal (NGT) has prohibited agricultural residue burning in any part of
Delhi, Rajasthan, Punjab, Uttar Pradesh and Haryana. Burning crop residue is a crime
under IPC and Air (Prevention and control of Pollution) Act, 1981
● Ministry of Power has set up ‘National mission on use of biomass in coal-based thermal
plants’. Also, In Budget 2022-23, it was announced that 5-7% biomass pellets will be co-fired in
thermal power plants
● Punjab Agriculture University has developed Happy Seeder machine which is used for
sowing wheat without any burning of paddy residue
● ‘Pusa decomposer’- chemical based solution developed by ICAR, converts stubble into
manure
● Punjab government is providing incentives to various industries for using paddy straw as a
fuel in boilers. Example, sugar mills, paper and pulp mills etc
Agricultural inputs
Seeds
● Most vital input for agricultural production

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AGRICULTURE PART I
● Quality of seed determines production and productivity of the crop

● Efficacy of other agriculture inputs like fertilisers, pesticides, irrigation depends upon quality of
seed
● For best yield, hybrid seeds must be replaced every year, and non-hybrid seeds must be
replaced every three years. However, Seed replacement in India is less than optimum
because
○ New seeds are not affordable
○ High quality seeds are not easily available to all farmers
○ There is limited research and development in the seed sector. Example: research
and investment by private companies remained at a meagre 3-4% of revenue compared
to international norm of 10-12%
○ There is a regulatory failure in preventing rampant illegal sale and planting of seeds
Seed Replacement Rate: Proportion of total sown area in which crop plants are planted with
quality/certified seeds other than farm saved seed
Measures to provide best quality seeds to farmers

Seeds Act 1966
● Legal framework around seed certification and makes good quality seeds available to
cultivators
● Seed rules were framed and notified under act in 1968 and systematic seed certification
started in 1969
● Provided for establishment of Central Seed Committee to advise states in seed related
matters
● Also provided for establishment of
○ Seed certification agencies in states
○ Central and State seed testing laboratories
National Seed Policy, 2002

● To provide intellectual property protection to new varieties, usher this sector into
planned development, protect interests of farmers and encourage conservation of
agro-biodiversity
● It had 10 thrust areas which are
○ Varietal development and plant varieties protection
○ Seed production
○ Quality assurance
○ Seed distribution and marketing
○ Infrastructure facilities
○ Transgenic plant varieties
○ Import of seeds and planting materials
○ Export of seeds
○ Protection of domestic seeds
● Key initiatives announced under the policy were:
○ Establishment of Plant Varieties and Farmers’ Rights Protection Authority to
undertake registration of existing and new plant varieties
○ Setting up National Gene Fund for
■ Payment of compensation to village communities for their contribution to
development and conservation of plant genetic resources
■ promoting conservation and sustainable use of genetic resources
○ Replacing Central Seed Committee and Central Seed Certification Board with
National Seeds Board

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AGRICULTURE PART I
Protection of Plant Varieties and Farmers’ Rights Act, 2001

● Provides for establishment of effective system for protection of plant varieties, rights of farmers
and plant breeders
● Encourages development of new varieties of plants
● Rights under the Act are
○ Breeders’ rights- Breeders (Seed producers) have exclusive right to produce, sell,
market, distribute, import or export the protected variety
○ Researchers’ rights- Researchers can use any registered varieties under act for
conducting experiment or research. However, repeated use needs prior permission of
registered breeder
○ Farmers’ rights- Farmer can save, use, sow, re-sow, exchange, share or sell his farm
produce including seed of a variety protected under the act. However, farmer shall not
be entitled to sell branded seed of a variety protected under the act
Seed Bill, 2019

● Formation of Seed Committee
○ Provides for formation of Central Seed Committee by Union government that will
be responsible for effective implementation of its provisions
● Registration of seed varieties
○ All varieties of seeds for sale have to be registered and are required to meet certain
prescribed minimum standards
○ Exempts seeds developed by farmers for their own use. However, if farmer sells such
seeds for monetary consideration, then that sale needs to be registered
● Truthfully Labelled Seeds
○ Currently, large percentage of seed is sold under self-certification programme called
“Truthfully Labelled (TL)” seeds. Certification process has been kept voluntary.
● Revision in Licensing norms
○ Provides for differentiation between seed producer, seed processor and seed dealer
for purpose of licensing
● Price Control
○ Empowers government to fix prices of selected varieties in case of ‘emergent’
situations like seed shortage, monopolistic pricing, profiteering etc
● Review of Complaints
○ Consumer Protection Act will be used to deal with complaints related to non-
performance of seed
Seed Banks/Seed Vault

● Established to maintain stocks of foundation and certified seeds of different crops /
varieties which help in making seeds available to farmers during contingent requirements like
natural calamities (floods, droughts)
● Other objectives include developing infrastructure for seed storage and to preserve genetic
diversity
● India’s seed vault is located at Chang la, Ladakh
Seed Village Programme

● Launched by Government of India in 2014-15 to upgrade quality of farmers’ saved seeds
● Under this programme
○ Financial assistance for distribution of foundation/certified seeds at 50% of seed
cost for cereal crops and 60% for pulses, oilseeds, fodder and green manure crops is
available for up to one acre per farmer
○ Assistance is provided to train farmers on seed production and seed technology at
Rs 15,000 for group of 50-150 farmers
○ Farmers are encouraged to develop storage capacity of appropriate quality

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AGRICULTURE PART I
Sub Mission for Seed and Planting Material (SMSP)

SMSP cover entire gamut of seed production chain, from production of nucleus seed to supply
of certified seeds to farmers, to provide support for creation of infrastructure conducive for
development of seed sector, support to the public seed producing organisations for improving their
capacity and quality of seed production, create dedicated seed bank to meet unforeseen
circumstances of natural calamities, etc
Other Seed related schemes launched by Government

Scheme Assistance
Integrated scheme on Covers all oilseeds, pulses and maize and assistance is
Oilseeds, Pulses and Maize provided for
● Purchase of breeder seeds
● Production of foundation and certified seeds and
● Distribution of certified seeds
Technology missions on Provides assistance for production of foundation and certified
Cotton, Jute and Mesta seeds and distribution of certified seeds of Cotton, Jute and
Mesta
National Food Security Assistance related to Rice
Mission ● For certified hybrid rice seed production and
distribution
● For certified HYV seed distribution (including
distribution of seed minikits of HYVs)
Assistance related to wheat
● For distribution of certified HYV seeds (including
distribution of seed minikits of HYVs)
Assistance related to pulses
● For production of certified and foundation seed
production and distribution of certified seeds.
(including distribution of seed minikits of HYVs)
Hybrid Rice Seed Production For production and distribution of hybrid rice seeds
Creation and strengthening To create/strengthen infrastructure facilities for production
of Infrastructure facilities and distribution of quality seeds
Fertilisers
● Materials which are applied to soil to increase its fertility and supply nutrients which are
essential for plant growth
● Nutrient content is higher in fertilisers than organic manure and is released
immediately into soil for uptake by the plants
Nutrients required by the plants

● Plants require 16 essential nutrients to grow of which carbon, hydrogen and oxygen are
taken from air while other 13 nutrients are supplied by soil
● These 13 nutrients are classified on basis of amounts in which plants require them
○ Primary Nutrients (N,P,K)
■ These nutrients are taken up by crop plants in largest amount and are applied
almost every crop season unless organic farming is practised
○ Secondary Nutrients (Ca, Mg and S)
■ The nutrients Calcium (Ca), Magnesium (Mg) and Sulphur (S) are taken up in
next largest amounts next only to N,P and K, but their uptake is not as high
○ Micronutrients
■ There are seven micronutrients with different functions. Without these
nutrients, plant nutrition would be compromised leading to potential declines
in plant productivity

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AGRICULTURE PART I
■ These are Boron (B), chlorine (CI), copper (Cu), iron (Fe), manganese (Mn),
molybdenum (Mo), zinc (Zn) and nickel (Ni)
● Most of Indian soils are low in Phosphorus (P), Potassium (K), Sulphate, Nitrogen (N)
and organic carbon (C) content
○ Besides primary and secondary nutrients, increasing deficiency of micronutrients (Zinc,
Boron, etc) is becoming a cause of concern
● To offset deficiencies, Indian farming sector relies heavily on use of chemical fertilisers to keep
this sector running smoothly
○ There are 3 basic types of fertiliser used in India namely—Urea, Diammonium
Phosphate (DAP), and Muriate of Potash (MOP)
● Fertiliser provides 3 major nutrients N, P, K which increase agriculture yields. The optimal N:
P: K ratio varies across soil types but the ideal ratio is around 4:2:1
Classification of fertilisers
Based on Origin Based on Nutrients
Organic fertilisers- Naturally produced Primary fertilisers- Contains Nitrogen (N),
Example- Vermicompost, animal manure, food phosphorus (P) and Potassium (K)
waste etc. Example- Urea, DAP (Di-ammonium
Phosphate) and MOP (Muriate of Potash) etc
Chemical or synthetic fertilisers- Produced in Secondary fertilisers- Contains Calcium,
factories Sulphur and Magnesium.
Example- Urea, DAP (Di-ammonium
Phosphate) and MOP (Muriate of Potash) etc
Biofertilizers- Microorganisms acting as Micronutrients based fertilisers- contains
fertilisers. Zinc, Iron, Boron, Copper, Molybdenum,
Example- Rhizobium, Azotobacter, Azolla etc Chlorine and Manganese
Major types of fertilisers used in India

● Urea
○ Highly concentrated, solid, nitrogenous fertiliser, containing 46.0% Nitrogen
○ Completely soluble in water hence Nitrogen is easily available to crops
○ Most consumed fertiliser among all others
○ Compared to other fertilisers, consumption volumes of urea is usually highest across
country followed by diammonium phosphate (DAP)
● DAP (Diammonium Phosphate)
○ Second most consumed fertiliser in India after Urea. Preferred fertiliser in India
because it contains both Nitrogen and Phosphorus which are primary macronutrients
○ Contains 46% Phosphorus and 18% Nitrogen
● MOP (Muriate of Potash)
○ Potassium chloride or Muriate of potash is red- white crystal containing 60 percent
Potassium oxide
○ Completely soluble in water and therefore readily available to crops
○ Does not produce MOP in country and relies completely on imports for its
consumption
● NPK Complex
○ Contains all three major nutrients Nitrogen, Phosphorus and Potash and makes them
easily and quickly available to plants
○ Available in market with variable ratios between three nutrients
● SSP (Single Super Phosphate)
○ Most popular phosphatic fertiliser after DAP as it contains 3 major plant nutrients
namely Phosphorus, Sulphur and Calcium along with traces of many micronutrients
○ Oilseed farmers have special preference for this fertiliser

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AGRICULTURE PART I
Fertiliser Policy in India

● Government of India has been regulating sale, price and quality of fertilisers in India
● Fertiliser is considered as an essential commodity under Essential Commodities Act, 1955
● In 1977, Retention Pricing Scheme (RPS) for urea was started. Later, RPS was extended to
Phosphatic and Potassic fertilisers
○ Under RPS, Retention Price was fixed for each & every urea manufacturing unit by
Department of Fertilisers, Ministry of Chemicals & Fertilisers, Govt. of India
● Implementation of RPS led to phenomenal increase in fertiliser consumption as well as domestic
production of fertilisers. Also led to significant increase in subsidy burden on government
○ To address this issue, a Joint Parliamentary Committee was formed, which
recommended decontrol of price and distribution of the phosphatic and potassic
fertilisers along with a marginal 10 percent reduction in consumer price of urea
● Resulted in price rise of phosphatic and potassic fertilisers. Hence, production and consumption
of nitrogenous fertilisers increased and consumption of P&K fertilisers decreased
○ Nitrogen, phosphorus and potassium (NPK) use ratio was seriously disturbed. The
ratio vitiated from 5.9:2.4:1 in 1991-92 to 9.5:3.2:1 in 1992-93 and 9.7:2.9:1 in
1993-94
● The Expenditure Reforms Commission recommended removing RPS for urea. Hence RPS was
replaced by new pricing scheme for urea in 2003
New Pricing Scheme (NPS)

● Concession Scheme, came into force in April, 2003, for urea units based on prices of
feedstock used and vintage of plants
● Scheme was implemented in 3 stages:
○ Stage-1: April 2003 to March 2004
○ Stage-2: April 2004 to September 2006
○ Stage-3: October 2006 onwards
● Difference between cost of production and selling price is paid as subsidy/concession to
manufacturers
○ Under NPS, 50 percent of movement /distribution of urea are decontrolled. However,
retail price of urea continues to remain controlled
● Urea was only controlled fertiliser sold at statutory notified uniform sale price
● NPS Stage-3 aimed at greater efficiency in urea production and its distribution in the country. It
incentivizes additional urea production beyond reassessed capacity
● Urea faced numerous problems under this policy
○ Delay in payment of subsidy resulting in higher interest burden, lower return on
additional production beyond full capacity (cut off capacity) due to rising gas cost
○ Due to rising gas prices (80% of the production of urea in India is gas-based), fertilisers
companies were dealing with various problems like lower returns, delay in payment of
subsidy resulting in higher interest burden
● Keeping all this in mind, government introduced Nutrient based subsidy (NBS) scheme in 2010
Nutrient Subsidy Scheme (NBS)

● Central sector scheme introduced in 2010 with objective to promote balanced use of
fertilisers and to limit fertiliser subsidy of government
● Fertilisers are provided to farmers at subsidised rates based on nutrients (N, P, K &
S) contained in these fertilisers
● Idea was to fix subsidy as per nutrients (in per kg) in the fertiliser
● Goal of this scheme is to boost consumption of P&K fertilisers to reach ideal balance (N:P:K-
4:2:1) of NPK fertilisers
● Key features of scheme
○ Urea is not covered under NBS

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AGRICULTURE PART I
○Government announces subsidy on Phosphatic and Potassic (P&K) fertilisers annually

for each nutrient on a per kilogramme basis
○ Rates are established by taking into consideration factors such as exchange rate,
country's inventory level, domestic and foreign prices of P&K fertilisers, etc
○ NBS enables Phosphatic and Potassic (P&K) fertiliser manufacturers, marketers,
importers to set MRP at reasonable levels
○ Maximum Retail Price (MRP) of P&K fertilisers is decontrolled and fertiliser
manufacturers / marketers are allowed to fix the MRP at a reasonable price. Centre
provides a fixed rate of subsidy (in Rs. Per Kg basis) on each nutrient
● Coverage
○ 22 grades of P&K fertilisers namely DAP, MOP, MAP, TSP, Ammonium Phosphate, SSP
and 16 grades of NPKS Nitrogen (N), Phosphate (P), Potassium (K), Sulphur (S) and
Ammonium Phosphate fertilisers are covered under the scheme
New Urea Policy 2015

● Objectives
○ increase indigenous urea production
○ promote energy efficiency in urea production
○ reduce subsidy burden on central government
● Policy ensures timely supply of urea to farmers at same Maximum Retail Price (MRP) with lesser
financial burden on exchequer
Features
● Incentivisation of urea production
○ Subsidy on production costs is provided to 25 urea units when their production is
beyond a certain production capacity. Calculation of subsidy is based on International
Pricing Policy
● Disbursement of subsidy on production costs
○ Policy recommended that subsidy on production costs and special compensation to
vintage plants (older than 30 years) should be paid without any delay
● Energy efficiency
○ Urea units would adopt best available technology and different measures to reduce
energy consumption. It will make urea manufacturing unit globally more competitive.
Energy efficient units would be able to compete against imports and produce more.
Policy also tightens energy consumption norms based on actual consumption levels of
respective units
● Supply of gas to urea units
○ Urea units are connected to national grid to ensure supply of gas at uniform price.
Policy recommended that at least 31.5 million metric standard cubic metres per day
should be supplied to urea units. Government will cover entire cost of natural gas,
which is the main feedstock of urea
Neem Coated Urea Policy 2015

● Department of Fertilisers (DoF) has made it mandatory for all domestic producers to
produce 100% urea as Neem Coated Urea (NCU)
● Objective: To improve soil health, reduce usage of plant protection chemicals, prevent pests
and disease attack, increase yield of crops
● Neem coated urea is not fit for industrial use, so chances of its illegal diversion to industries will
also be lesser. Required less in quantity with same plot size and gives higher crop yield
● Aims to improve soil health, reduce usage of plant protection chemicals, prevent pests and
disease attack, and increase yield of crops
● Due to slow release of nitrogen, Nitrogen Use Efficiency (NUE) of Neem Coated Urea
increases resulting in reduced consumption of NCU as compared to normal urea

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AGRICULTURE PART I
Problems in Fertiliser Sector

Supply side problems
● Fertiliser industries are energy intensive industries: Production of Urea is energy
consuming and requires natural gas
○ Since India depends on imports for most of its natural gas needs, insufficient capacity
utilisation of existing industries and increasing demands for Urea creates a problem
● Import dependency for raw materials: Nitrogen fertiliser production through Haber-
Bosch process requires natural gas
○ Similarly, producing complex fertilisers requires Naphtha/Fuel Oil/LSHS as feedstock,
and India is again dependent upon import of these commodities to feed its fertiliser
industries
○ Potash is another one of commodities for which India is completely dependent on
imports for its supply
● Uncertainty in International Politics: adds to woes of fertiliser sector in India
○ In recent case, where countries imposed sanctions on Russia and Belarus in wake of
military intervention in Ukraine, prices of natural gas and potash have skyrocketed in
international market
○ In these situations alternation suppliers tend to exploit already bad situation
○ This causes strain to fertiliser industries as they have to bear extra added cost without
any scope for increasing prices as they are heavily regulated in India
Demand side problems

● Low levels of fertiliser consumption: India’s consumption of fertiliser per hectare of land is
relatively very low to competing neighbours in region
○ In 2018, fertiliser consumption for India was 175 kilograms per hectare, for China it
was 393.2 kilogram per hectare and for Bangladesh it was 318.5 kilogram per hectare
● Improper use of fertilisers: Composition of total plant nutrients in terms of N, P, K ratio
deviated considerably from recommended or optimal NPK mix
○ It was 33.7:8.0:1 in Punjab and 1.3:0.7:1 in Kerala. In 2019-20, fertiliser use per hectare
of cultivated area varied from 70 kg of NPK in Rajasthan to 250 kg in Telangana.
● Unpredictable demand patterns across the region: Due to changes in climate,
government policies and international demand for agricultural products it has become very
difficult for fertiliser industries to predict expected demand for fertilisers in the country
○ Though, Department of Agriculture and Farmers Welfare assesses upcoming
requirement for the coming cropping season, actual sales which represent demand have
been unpredictable in recent years. In this case, it becomes hard for industries to stay
profitable
Systemic problems
● Attempts to decontrol fertiliser prices: Joint Parliamentary Committee on Fertiliser Pricing
(JPC) under chairmanship of Pratap Rao Bhosale in December 1991 recommended that
prices (along with movement and distribution) of fertilisers containing phosphate and potash be
decontrolled
○ Continuing with its efforts to decontrol fertiliser prices, Indian government introduced
shift in subsidy regime with scheme called Nutrient Based Subsidy scheme in 2010
○ Delinked subsidy regime from prices of chemical fertilisers and consequently made
possible complete decontrolling of non-urea fertiliser prices
○ This policy change has resulted in massive rise in prices of non-urea fertilisers, which
has severe implications for Indian peasantry
● Effects of subsidies: fertiliser subsidies have been criticised on various grounds including rising
fiscal burden of subsidies, lopsided pattern of nutrient use, overuse of fertilisers leading to
excess nitrification of soil, low productivity of fertilisers and low fertiliser use efficiency

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AGRICULTURE PART I
○ In order to minimise impact of rising prices on farmers, bulk of price rise is absorbed
by government through enhanced fertiliser subsidy. This is likely to create serious fiscal
challenges
● Weakening of Fertiliser Industries: Major problem fertiliser sector today faces is low
investment in this sector, both from private as well as government entities
○ Some of factors that have led to low interest and lack of investment in sector include
excess focus and usage of urea, delayed subsidy payments to manufacturers,
inconsistent Government policy, and non-availability of feedstock
Reforms in fertiliser sector

● Nutrient Based Subsidy (NBS) Scheme, 2010
○ Government fixes subsidy annually based on weight of different macro/micronutrient
(N, P, K, S, etc) contained in fertiliser
● Neem Coated Urea Policy, 2015
○ Department of Fertilisers (DoF) has made it mandatory for all domestic producers to
produce 100% urea as Neem Coated Urea (NCU)
○ Aims to improve soil health, reduce usage of plant protection chemicals, prevent pests
and disease attack, increase yield of crops and due to slow release of Nitrogen,
Nitrogen Use Efficiency (NUE) of Neem Coated Urea increases resulting in reduced
consumption of NCU as compared to normal urea
● New Urea Policy (NUP) 2015
○ Introduced to incentivize domestic manufacturers and free transportation of P
(phosphorus) and K (potassium) fertilisers
○ Aimed to maximise indigenous Urea Production to reduce import dependency and
reduce subsidy burden on government, promote energy efficiency to reduce Carbon-
footprint to make Urea production environment friendly
○ Government will cover entire cost of natural gas, which is main feedstock of urea
● Uniform Freight Policy (UFP), 2008
○ Freight for urea has been always driven by considerations of serving farming population
at large including those in remote and hilly areas
○ Under this policy rail expenditure for transportation of fertilisers is paid as per actual
expenditure based on actual lead
● New Investment Policy (NIP) 2012
○ Announced to facilitate fresh investment in urea sector and to make India self-sufficient
in urea sector
○ Under this Matrix Fertilisers & Chemicals Limited (Matrix) has set up a Coal Bed
Methane (CBM) based Greenfield Ammonia Urea complex at Paragraph, West Bengal
● Gas Pooling Policy 2015
○ All urea units would get gas at uniform price. It seeks to change industry dynamics in
Urea sector by levelling gas costs for all players
● Market Development Assistance (MDA)
○ Aimed to promote use of alternative fertilisers. This policy was earlier limited to city
compost only
○ There were demands to expand this policy by incorporating organic waste like Biogas,
Green Manure, organic compost of rural areas, solid/liquid slurry, etc
● Implementation of Direct Benefit Transfer (DBT) in Fertiliser Subsidy (2016)
○ Under fertiliser DBT system, 100% subsidy on various fertiliser grades is released to
fertiliser companies on basis of actual sales made by retailer to beneficiaries

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AGRICULTURE PART I
Economic Survey (2021-22)

Key Area to Focus: Import dependency, growing subsidy, lack of transparency
Steps need to be taken:
● Notification of New Urea Policy2015 for maximising indigenous production, promoting
energy efficiency in production, and rationalising subsidy burden on government
● Mandatory for all domestic producers of urea to produce only neem coated urea
● Potash Derived from Molasses (PDM) brought under Nutrient Based Subsidy (NBS) scheme
● Latest technologies such as coal gasification; implementation of Direct Benefit Transfer for
providing benefits to farmers through Point-of-Sale machines, etc
Recommendations:
● Shifting more towards harnessing the potential of allied activities.
● Exploring options and promoting use of alternative fertilisers such as Nano Urea and organic
fertilisers which protect the soil, are more productive and contribute to higher nutrient use
efficiency
● Development and implementation of small holding farm technologies for improving
productivity of small and marginal farmers
● Coordinated action from State Governments to facilitate shift to high value and less water
consuming crops
● Prioritising Crop diversification towards oilseeds, pulses, and horticulture by addressing the
core issues of irrigation, investment, credit and markets in their cultivation
● Increasing agriculture R & D to improve productivity in crop and allied sectors
● Promoting use of new technology including drones and AI based decision support systems,
reduction in use of chemical fertilisers and use of low-cost organic inputs and supporting
startups for innovations.
Fertiliser Subsidy
● Refers to a farmer's purchase of fertiliser at lower price than MRP (Maximum Retail Price), that
is, at a lower price than ordinary demand-and-supply rate or regular production or import costs
● Even if farmer profits, fertiliser subsidy ultimately goes to fertiliser manufacturer
Subsidy Mechanism
● Government has introduced Direct Benefit Transfer (DBT) system in Fertilisers w.e.f. October
2016
● Under fertiliser DBT system, 100% subsidy on various fertiliser grades is released to the
fertiliser companies on basis of actual sales made by retailers to beneficiaries
○ Although subsidy went to fertiliser firms, farmer who paid MRPs below market rates
was ultimate beneficiary
Important facts to remember
● At the moment, urea is only fertiliser whose pricing and distribution are regulated by
government
● Central Government provides urea subsidies to fertiliser manufacturers based on cost of
production at each plant, and units must sell fertiliser at government-set Maximum Retail
Price (MRP). As a result, no one can sell urea for more than government's MRP
Issues with fertiliser subsidies

● A No Denial Policy: At the moment, anyone can buy any amount of fertiliser from PoS
machines. There is a 100-bag restriction per transaction, however there is no limit on number
of transactions
○ This increases likelihood of fertiliser being diverted to undesired recipients

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AGRICULTURE PART I
○ Example: Plywood/particle board producers can use it as a binder, animal feed

manufacturers can use it as cheap protein source, and milk sellers can use it as an
adulterant
○ In addition, it is smuggled into Nepal and Bangladesh
● Fiscal burden
○ Fertiliser subsidy burden on central government in last 2 years has increased and
crossed mark of Rs 1 lakh crore due to increased prices of fertilisers in International
market
● Degradation of the environment
○ Subsidies have allowed for excessive fertiliser use on agricultural lands. This is especially
true for urea, which has seen a slight price increase over last decade
○ Due to poor nitrogen utilisation efficiency of Indian soils, majority of urea supplied to
soil is lost as NH3 (Ammonia) and Nitrogen Oxide
○ This causes contamination of groundwater, soil, and land, among other things
Way Forward
Economic Survey 2023-24
● Flexible, farmer-friendly and ecologically sustainable fertiliser subsidy
● Lok Sabha Standing Committee on Chemicals & Fertilisers, in their Thirty-Ninth
Report, titled ‘Nano-Fertilisers for sustainable crop production and maintaining
soil health’, underscored the urgency of the following issue:
○ Fertiliser consumption in India is imbalanced, and Urea accounts for more than 82
per cent of the nitrogenous fertilisers applied to the majority of the crops.
○ As a result, the Nitrogen, Phosphorus and Potassium (NPK) consumption ratio has
widened from 4:3.2:1 in 2009 10 to 7:2.8:1 in 2019-20.
○ This imbalance, leading to the deterioration in soil quality and health hazards,
necessitates an immediate re-examination of urea subsidy management in agriculture
while also considering the sustainability aspects in the long run.
○ Using Agri Stack to improve the targeting of fertiliser subsidy
■ Agri Stack is the digital foundation set up by the government to make it
easier to bring various stakeholders together to improve agriculture in India
and enable better outcomes and results for the farmers by using data and
digital services.
● Government should investigate other options for assisting farmers, such as using Direct Benefit
Transfer (DBT) instead of subsidies
○ This would limit number of fraudulent recipients and prevent it from being diverted for
non-agricultural purposes
○ Until then, there should be limit on how many subsidised fertiliser bags somebody may
buy in a single kharif or rabi farming season
● Urea should be included in the NBS plan to alleviate the government's fertiliser subsidy fiscal
burden. Sharad Pawar Committee suggested this in 2012
● Emphasis should now be on reducing use of chemical fertilisers and boosting use of organic
fertilisers such as vermicomposting, seaweed extracts, and other natural products
○ This would be in accordance with long-term development and would help to avoid land
degradation
● In long run, government must supplement farmers' agricultural income so that they will
voluntarily give up their subsidies
○ Better implementation of initiatives such as E-NAM, SAMPADA, PM Fasal Bima Yojana,
and others would help to achieve this

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AGRICULTURE PART I
Government’s approach towards fertilisers usage

Government of India is focussing on three main objectives with regards to fertilisers usage in
India
● Balanced use of fertilisers as per nutrient deficiency in soil
○ Government has launched soil health card scheme in 2015 to ensure this
● Achieving self-sufficiency in Urea production to reduce imports and deal with fluctuation
of fertilisers prices in International market
○ Government of India is setting up fertiliser plants across country and promoting
nano-urea to achieve it
● Promotion of alternative methods of farming that do not require use of fertilisers such as
organic farming and zero budget natural farming
○ Government of India is implementing Paramparagat Krishi Vikas Yojana and Bharatiya
Kisan Prakritik Schemes for promotion of organic farming and Zero-budget Natural
farming respectively
Soil Health Card scheme

● Objectives of scheme are to issue soil health cards to farmers every 2 years so as to
provide basis to address nutritional deficiencies in fertilisation practices
● Provides information to farmers on nutrient status of their soil along with recommendation on
appropriate dosage of nutrients to be applied for improving soil health and its fertility
● Soil testing reduces cultivation cost by application of right quantity of fertiliser
● Ensures additional income to farmers by increasing yields and promotes sustainable farming
Promotion of Liquid Nano Urea

● Developed and patented by IFFCO
○ Recently, an MoU and a Non-Disclosure Agreement was signed between IFFCO and
National Fertilisers Limited (NFL), Rashtriya Chemicals and Fertilisers Limited (RCF) to
transfer technology of Nano Urea
● Nano Urea is urea in the form of nano-particles which provides nitrogen to plants as an
alternative to conventional urea
○ Urea is a chemical nitrogen fertiliser, white in colour, which artificially
provides nitrogen, a major nutrient required by plants
● Particle size is about 20-50 nm and has more surface area and number of nitrogen particles per
unit area as compared to conventional Urea
● When sprayed on plant leaves, Nano Urea easily enters through stomata and other openings
and is easily assimilated by plant cells. Easily distributed inside the plant as per its need.
Unutilized nitrogen is stored in plant vacuole and is slowly released for proper growth and
development of plants
● Application of 1 bottle of Nano Urea can effectively replace at least 1 bag of Urea
LNU & Conventional Urea: A Comparison

● Higher Efficiency:
o While conventional urea has an efficiency of about 25 %, efficiency of liquid nano
urea can be as high as 85-90 %
o Conventional urea fails to have desired impact on crops as is often applied
incorrectly, and nitrogen in it is vaporised or lost as gas. Lot of nitrogen is also
washed away during irrigation
● Targeted Supply of Nutrients to Crops:
o Liquid nano urea is sprayed directly on leaves and gets absorbed by plant
o Fertilisers in nano form provide a targeted supply of nutrients to crops, as they are
absorbed by stomata, and pores found on epidermis of leaves
● Economical:

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AGRICULTURE PART I
o Bottle of nano urea can effectively replace at least one bag of urea
o Liquid nano urea comes in half-litre bottle priced at Rs 240 and carries no burden of
subsidy currently
o By contrast, farmer pays around Rs 300 for a 50-kg bag of heavily subsidised urea
Benefits of Liquid Nano Urea

● Higher crop yields
○ During farmer field trials on 94 crops conducted by Indian Council of Agriculture
Research (ICAR)- Krishi Vigyan Kendras (KVKs), an 8% increase in crop yield with
foliar application of Nano urea was observed
● Better food quality
○ Since liquid nano urea is applied on leaves and is absorbed slowly by plants, there is no
excess urea found in the crop and hence, results in better food quality.
● Increases farmer’s income
○ It reduces need of applying large amounts of urea reducing input costs to farmers. Also,
higher crop yields result in more income to farmers.
● Environment friendly
○ Helps in minimising environmental pollution by reducing leaching of nutrients polluting
groundwater and gaseous emissions causing environmental pollution and climate change
● Reduction in use of chemical fertilisers
○ Increases availability of nitrogen to crop by 80% as it releases plant nutrients in a
controlled manner resulting in higher nutrient-use efficiency
● Easy to store and transport
○ Will help in reducing transportation costs of urea significantly
Atma Nirbharta in Urea Production

● Government has planned to start five urea plants at Ramagundam, Gorakhpur, Sindri,
Barauni and Talcher. All the plants except Talcher plant have become operational. Talcher
plant is expected to become operational by October, 2024
● These five plants would together produce 6.5 million tonnes of urea every year
which is in line with the government’s aim to end import of Urea by 2025.
Recent Government Initiatives

PM PRANAM (Promotion of Alternate Nutrients for Agriculture Management
Yojana)
Objectives
● Intends to reduce subsidy burden on chemical fertilisers, which is expected to rise to Rs 2.25
lakh crore in FY 2022-23 (39% higher than last year’s Rs 1.62 lakh crore)
● Aims to discourage chemical fertiliser usage and promote sustainable agriculture practices
Need for PM PRANAM scheme

● Overall expenditure by government on fertiliser subsidy has increased due to increased
demand for fertiliser in the country over the past 5 years
● Total requirement of four fertilisers - Urea, DAP (Di-ammonium Phosphate), MOP (Muriate
of potash) and NPK (Nitrogen, Phosphorus and Potassium) - increased by 21% between 2017-
2018 and 2021-2022, from 528.86 lakh metric tonnes (LMT) to 640.27 LMT
● The scheme will help in cutting down government’s subsidy burden
● Also, it is in line with government's intent to reduce intense use of chemical fertilisers
and promote alternative fertilisers
Features of the PM PRANAM scheme

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AGRICULTURE PART I
● Implementing ministry- Ministry of Chemicals and Fertilisers

● Any money will not be allocated under scheme but 50% of subsidy savings due to
reduced use of chemical fertilisers will be provided as a grant to state that saves money
● Out of this grant,
○ 70% would be utilised to build assets that will promote alternate fertilisers and
their production at the district, village and block levels.
○ Remaining 30% of total grant will be used to help farmers, panchayats, Farmer
Producer Organisations (FPOs) and Self Help Groups (SHGs) that work to reduce
fertiliser usage and spread awareness
Pradhan Mantri Bharatiya Jan Urvarak Pariyojana- One Nation, One Fertiliser
scheme
● Government of India has introduced single brand for fertilisers i.e. “Bharat” brand.
○ Under this, a single brand name for Urea, DAP, MOP and NPK etc. would be Bharat
Urea, Bharat DAP, Bharat MOP and Bharat NPK respectively for all fertiliser
companies (both public and private limited companies)
● Fertiliser companies are allowed to display their brand, name, logo and other relevant product
information only on one-third of their bags whereas on remaining two-third space, the
“Bharat” brand and Pradhan Mantri Bharatiya Jan Urvarak Pariyojana will be shown
Significance of the scheme

● Now, Urea will be only available under brand name ‘Bharat’ in the entire country
● Will help in reducing cost of fertilisers and will increase their availability in market
● Takes care of dilemma among farmers in choosing from a plethora of brands available in
markets, reduces crisscross movement and further ensures timely supply of fertilisers
● Would also reduce freight subsidy burden on government which is about 5% of total
government’s subsidy
Pradhan Mantri Kisan Samriddhi Kendras (PMKSK)

● PM Narendra Modi also inaugurated 600 PMKSKs during PM Kisan Sammelan organised
in October, 2022 as part of Special Campaign 2.0 initiatives of Department of
Fertilisers
● Government aims to establish 3.25 lakh PMKSKs across country by converting
existing village/sub district/block/taluk and district level fertiliser shops into Model
Fertilizer Retail Shops
● These shops will act as “one stop shops” for all agriculture related inputs and services
● From these centres, farmers will be able to buy agri-inputs (fertilisers, seeds,
implements) and avail soil, seed and fertiliser testing and useful information about farming
techniques
● Shops will also be used to create awareness among farmers, provide information
regarding various government schemes and ensure regular capacity building of retailers at
block/district level outlets
Water/Irrigation
● Irrigation is controlled application of water through man-made systems to meet
water requirements of crop plants
○ Irrigation is artificial application of water to crops or plants, especially when an
agricultural field does not get enough water through rains
● To enhance agricultural productivity and to expand agricultural sector, expansion of irrigation is
key strategy
Need of irrigation in India

● Uncertainty of monsoon

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AGRICULTURE PART I
○ Our country has faced several droughts which affected millions of people and resulted
in starvation and epidemics. Thus, irrigation can provide water in such times of distress
● Water holding capacity of soils
○ Different types of soil have different capacities to hold water. Example: sandy soil will
need more water than clayey soil. Laterite and red soil have less moisture retaining
capacity and without proper irrigation, cultivation is not possible for them
● Improve productivity
○ Irrigation is required to increase productivity of farms and in turn, farmer's income
● To reduce instability in production
○ Reduces instability in production
○ Can prevent reduction in output level due to both drought and flood
● To increase area under cultivation
○ Irrigation can bring more land under cultivation. At present, large amount of land is
lying idle which can be brought under cultivation through proper irrigation
Characteristics of an efficient irrigation method

● Uniform distribution of water
● Minimum transport and minimum loss of soil
● Storage of maximum water
● Crop growth is not adversely affected
● Economically sound and adaptable
Major Irrigation Systems in India

● In India, irrigation is mainly done through wells, canals and tanks
Facts about Irrigation system in India as per Economic Survey 2021-22

● Share of net irrigated area accounts for about 49 percent of total net sown area in
India and out of net irrigated area, about 40 percent is irrigated through canal systems
and 60 percent through groundwater
● Overall stage of ground water development (ratio of annual ground water draft and
net annual ground water availability) in country is 63 per cent
○ This ratio which signifies rate of extraction of ground water, is very high (more
than 100 per cent) in the states of Delhi, Haryana, Punjab and Rajasthan
○ Himachal Pradesh, Tamil Nadu, Uttar Pradesh and UTs of Chandigarh and Puducherry
fall in medium category with ratio ranging between 70-100 per cent
Other Facts related to water availability in India
● India’s per capita water availability is estimated at 1,428 kilolitres per year
● A nation with annual water availability of below 1,700 kilolitres per head is considered water
deficient
● India first entered league of water-deficient countries in 2011
● India still has one of the fastest shrinking water pools among G-20 economies
Canal Irrigation
● Canal is an artificial channel for carrying water to the fields to perform irrigation
● Water is taken either from river, tank, or reservoirs
● Construction of canals is done either with concrete, stone, or brick
● Main purpose of canals is to solve durability issues like seepage and erosion
● There are two types of canal irrigation: Inundation canals and Perennial canals
○ In Inundation canals, irrigation is done during rainy season when river is flooded or
has excess water. Are formed out of rivers without building dams, barrages, and
embankments
○ In Perennial canals irrigation is done all throughout year, as water is taken from
those rivers, which are perennial. Are formed by constructing a barrage across river

24
AGRICULTURE PART I
● Merits: Most canals provide perennial irrigation i.e. throughout year. Rivers bring down
lot of sediments into canal, which are then further added to agricultural field, adding fertility to
soil
○ Also a cheap method in long run, even though initial cost of construction is high. Best
part about canal irrigation is that it is part of many multipurpose river projects
● Demerits: Water in canal soaks into ground and creates problems of waterlogging
○ Suitable in plain areas only. Canals overflow and flood surrounding areas during
rainy season
○ Marshy areas near canal act as breeding ground for mosquitoes, resulting in spreading
diseases like malaria and dengue
Tank irrigation
● In tank irrigation, there are artificially constructed
reservoirs that can be made of any size. Built of
mud or stones across stream of river
● Consists of water storage, developed by constructing
small bund of earth or stones built across a
stream
● Bund is used for irrigation and for other purposes
● Merits: No heavy cost of construction involved.
Individual farmers can build their own tanks
○ Fishing can also be done in these tanks, which
becomes source of food and income for farmers
● Demerits: Water tanks getting dried during the summer
season
○ As tanks are situated near agricultural field, they
take away larger areas of cultivable lands
○ Lifting water out of tanks and carrying it to fields is a difficult process. Another major
problem that occurs in Tanks is that of siltation
Well and Tubewell irrigation

● Wells are holes that are dug into ground at deeper
levels, to obtain groundwater. Some methods which are
used in well irrigation are persian wheel, charas or
mot, rhett and tingly
● When depth of wells goes much deeper, like more than
15 metres, it is called Tubewells
● Tubewells are operated by using pumping set that uses
electric motor or is operated by diesel engines
● Merits: Cheapest source of irrigation. Also independent
source of irrigation that can be used whenever required
○ Doesn’t create problem of Reh (Reh is Infertile
sand-like soil, which is white in colour)
● Demerits: Irrigates only limited areas like up to 1-8
hectares of land. Also well may dry out if excessive water
is taken out of it or it is a drought season
○ Well, tubewell irrigation is not possible in areas of brackish groundwater water.
Tubewell can take away lot of groundwater, leaving behind dry ground unsuitable for
irrigation
Comparison of Canal Irrigation, Tank Irrigation and Well Irrigation
Canal irrigation Tank irrigation Well irrigation
● One of the popular irrigation ● Tanks are reservoirs of ● Well is a hole dug in ground to
systems in India. a specific size depending obtain subsoil water

25
AGRICULTURE PART I
● Can be easily extended to on availability of water ● Ordinary well is about 3-5

those areas which are and requirements. It is a metres deep but deeper wells
drained by perennial rivers traditional way of are about 15 metres deep
○ However, canals storing water from ● Common in Northern Plains;
can also reach dry rainfall, streams, rivers Deltaic plains of Mahanadi,
places where etc Godavari, Krishna, Cauvery;
perennial rivers are ● Mostly found in Parts of Narmada and Tapi
not present Deccan Plateau and Valleys; weathered areas of
● Administered and controlled Southern region of Deccan trap and crystalline and
by River Valley Projects India sedimentary zone of peninsular
○ Serves two ● Tamil Nadu is at top in India
purposes - provides terms of tank irrigation
irrigation facilities
and at same time
can also control
floods
Advantages: Advantages: Advantages:
● Provide water to crops as ● Most tanks are natural ● Simple and cheap source of
and when they need and their cost of irrigation
● Canals carry a lot of construction is low ● Independent source, can be
sediment brought down by ● Generally constructed used as and when necessity
rivers. This sediment is on rocky beds and have arises
deposited in agricultural longer life span ● Limit to extent of canal
fields which add to fertility ● In many tanks, fishing is irrigation beyond tail end of the
of soil also carried on, thus, canal while a well can be dug at
● Some canals are parts of supplementing income any convenient place
multipurpose projects and, of the farmer ● More reliable during periods of
therefore, provide cheap drought when surface water
source of irrigation dries up
● Cost of canal irrigation is
cheaper in long run
Disadvantages: Disadvantages: Disadvantages:
● Marshy areas near canals act ● Tanks dry up during the ● Well may dry up if excessive
as breeding grounds of dry season. They fail to water is taken out of it
mosquitoes which result in provide irrigation when ● Groundwater levels fall during
widespread malaria it is needed the most. drought periods and hence
● Many canals overflow during ● There are evaporation water is not available
rainy season and flood losses from tank. ● Not possible in areas of
surrounding areas ● Silting of tank bed is a brackish groundwater
● Canal irrigation is suitable in big problem, and it ● Lack of electricity, diesel can
plain areas only requires desilting of tank also render Tubewell useless
● Excessive flow of water in at regular intervals
fields raises ground water ● Supplying water from
level. Capillary action brings the tanks to fields is also
alkaline salts to surface and a big issue
makes large areas unfit for
agriculture
● Vast areas in Punjab,
Haryana, Uttar Pradesh and
Maharashtra suffer from
problem of ‘reh’ caused by
canal irrigation

26
AGRICULTURE PART I
Micro Irrigation in India

● Application of water at low volume and frequent intervals under low pressure to plant root
zone
● Unlike flood irrigation, where water is lost in conveyance, micro irrigation not only leads to
water saving but also helps in soil health management and prevents water logging
● Facts about Micro Irrigation system in India:
o An impact-evaluation study of our micro irrigation scheme was carried out
by department of agriculture cooperation and farmers welfare in 2021. It
found the following:
▪ Water savings in comparison with flood irrigation are to the tune of 30-50%,
with an average of 32.3%
▪ Electricity consumption falls by about 31%
▪ Adoption of micro irrigation results in savings on fertilizers in range of 7% to
42%
▪ Average productivity of fruits and vegetables increased by about 42.3% and
52.8%, respectively
▪ Overall enhancement of farmers’ income was in range of 20% to 68%, with an
average of 48.5%
Types of Micro Irrigation

Sprinkler Irrigation
● Through sprinkler irrigation, water is provided like
rainfall to crops.
● Does not require any channels, and thus entire area
can be utilised
● Suitable for all types of crops, can be extended from
small to large areas
Advantages
● Suitable for varying sizes of land—both large and
small plots
● Easy to direct flow of water to specific areas and
hence water losses can be minimised
● Also possible to apply chemicals through sprinklers by diluting them in water
Disadvantages
● Initial cost is very high
● Wind interferes with distribution pattern, reducing spread or increasing application rate
● Clogged nozzles or failure of sprinklers to revolve can also create issues
● Requires a constant supply of water that is free from slit and suspended matter
● Suitable for high value crops
Drip irrigation
● Also known as trickle irrigation- water falls drop by
drop just at the position of roots
● Most water-efficient method of irrigation if managed
properly as evaporation and runoff are minimised
Advantages
● Saves time, money, labour and water because system is
so efficient
● Prevents fungal disease by minimising water contact
with leaves, stems, and fruit of plants

27
AGRICULTURE PART I
● Can also help in controlling weed growth because water is only delivered where it’s needed
● Drip irrigation can also be done on uneven ground
Disadvantages
● Sensitive to clogging and also there can be uneven distribution of moisture
● Can create issues of salinity
● Cost is comparatively more, so it might not be useful for small farmers
● Requires high skill for design, install and operation
Subsurface Irrigation
● Similar to drip/trickle method in that it distributes
water through tubes and emitters. But in this
method, tubes are buried below surface of the
ground
Advantages
● Saves water by eliminating surface water
evaporation in hot and arid conditions
● Reduces number of weeds because water is not
on soil surface where most weed seeds germinate
● Prevents damage from animals or machinery
because system is below ground
● Prevents soil erosion which happens in surface irrigation
Centre-pivot irrigation
● Involves self-propelled system in which single pipeline supported by a row of mobile towers is
suspended 2-4 metres above ground
● Water is pumped into central pipe and as towers rotate slowly around pivot point, large circular
area is irrigated
Advantages
● Results in the uniform application of water.
● Saves human labour.
● System generally operates at lower pressure, thus conserving energy.
● Reduces the opportunity for surface runoff or deep percolation.
● Also provides opportunity for fertigation (application of fertilisers with the irrigation water)
which allows targeted application of small quantities of nutrients, with a reasonable uniformity of
application and less risk of nutrient losses
Disadvantages
● Relatively costly compared to surface irrigation systems
● Operation and maintenance of these systems is also a concern
Challenges of Micro Irrigation system in India

● Delays: in notifications and guidelines by state governments tend to dissuade farmers from
availing benefits offered under this scheme
○ Despite availability of funds, as claimed by state governments, scheme applications are
processed only at end of a financial year, done typically to achieve pre-set targets in
what is famously known as ‘March rush’
○ As a result of this narrow window, only a handful of farmers can apply
● Delays in the Reimbursement of Subsidies: Unlike other subsidies that are directly
transferred to beneficiaries, those for installing drip irrigation systems are transferred to
vendors only after due diligence

28
AGRICULTURE PART I
○ No fixed timeline for inspection and testing of installed system for

transferring subsidies
● Financial Difficulties: Farmers often face difficulty in getting necessary support from financial
services
○ Reported that a lower adoption rate for micro-irrigation was due to reduction in
budget during period 2013-16
● Availability of Power: Main input for an irrigation system is energy, and for large scale
projects, only electricity is viable source which, despite having respective welfare schemes in
place, is still beyond reach of every farmer
Way Forward
● Setting timeline for each stage, from application by farmer to execution and payment
disbursement
● Strengthen Centre’s monitoring mechanism by insisting on periodic review of applications,
approvals, work orders and actual installations
● To establish central information system to monitor scheme’s progress
● Deploy direct benefit transfers for subsidy sums to go straight into bank accounts of
farmers
● Farmers should be made able to avail the benefits of such welfare schemes in accordance with
their crop cycles or sowing patterns
● Capital cost required for drip-irrigation method should be brought down substantially
● Special subsidy programme may be introduced for water-intensive crops like sugarcane,
banana and vegetables
● Differential subsidy scheme for water-scarce and water-abundant areas can also be
introduced
Challenges of irrigation systems

● Delays in completion of projects – Delay in construction of new projects. Also, potential of
existing projects remains unutilised
o From 2008-2017, of the 201 major and medium (M&M) projects approved,
only 62 were completed. Of the 11,291 minor irrigation (MI) schemes
sanctioned, only 8,014 were completed.
o As a result, only about 35% of India’s irrigation potential was utilised. Of 118
major projects surveyed by CAG, 105 suffered from “time overrun” with some
projects being delayed by more than 18 years
o Tardy implementation of projects under Accelerated Irrigation Benefit
Programme (AIBP) between 2008-2017 led to almost threefold jump in cost
of these irrigation projects to ₹1.20 lakh crore, according to report by CAG
● Inter-state Water disputes- Irrigation is a state subject in India. Development of water
resources is, therefore, being planned by states individually taking into account their own needs
and requirements
o However, all major rivers are inter-state in character. As a result, differences with
regard to storage, priorities and use of water arise between different states
o Nrrow regional outlook brings inter-state rivalries over distribution of water supply
o Recent cases of Cauvery Water Dispute and Satluj Yamuna Link Canal are
some examples
o In recent years, increasing water scarcity, rapid rise in urban and rural demands for
freshwater, and contentious political dynamics have further exacerbated problem of
water sharing
● Regional disparities in irrigation development – Regional disparity in irrigation
development. Example: North Eastern Region is behind in comparison to Northern areas

29
AGRICULTURE PART I
● Uneven rainfall distribution: In India, about nearly half of net sown area comes under rainfed
lands. Even after achieving ultimate irrigation potential, 31% of cultivable area will remain under
rainfed cultivation
o Most rainfall occurs with onset of southwest monsoon during June to October month.
It varies from less than 100 mm in western Rajasthan to more than 2500 mm in
northeast region of country
o Flood considered to be devastating natural calamities, led damage of crops worth of Rs.
3214.99 crore grown on 31.58 million hectare in 2013
o India receives annual precipitation (including snowfall) of almost 4000 billion cubic
meter (BCM), which results in an estimated average water potential of 1869
BCM
o Per capita annual water availability has declined from 5177 cubic meter in
1951 to 1508 cubic meter by 2014 and likely to reduce further to 1465 cubic
meter and 1235 cubic meter by 2025 and 2050, respectively
● Poor irrigation efficiency: Inadequate off-farm and on-farm infrastructures and poor
maintenance leads to poor irrigation efficiency e.g. unlined canal and farm channels
o Important challenge facing irrigation sector in India is growing gap between Irrigation
Potential Created (IPC) and Irrigation Potential Utilized (IPU), and uneven
distribution of water over the length of canal system
o Overall irrigation efficiency of major and medium irrigation projects is
estimated to be around 38%
▪ Efficiency of surface irrigation system can be improved from about 35-
40% to around 50-60% and that of groundwater from about 65-70% to
72-75%
● Water-logging and salinity- Introduction of
irrigation has led to problem of water logging
and salinity in some of the states
● Increasing cost of irrigation- Cost of
providing irrigation has been increasing over
years
● Decline in water table- There has been a
steady decline in water table in recent
period in several parts of country,
especially in western dry region, on account of
over exploitation of ground water and
insufficient recharge from rain-water
o Deterioration of groundwater
resources is outcome of technology
and policy led shift in cropping pattern
(towards paddy)
o Over-exploitation of groundwater has
made north western region one
amongst three top water-risk hotspot
● Water-borne and water-related diseases are commonly associated with the introduction
of irrigation. Diseases most directly linked with irrigation like malaria whose vectors proliferate
in irrigation waters
Tackling Irrigation Challenges

● Infrastructural development for adequate and regular water supply: There is
inadequate and irregular canal water supply in many commands. To tackle this conjunctive water
use needs to be facilitated. Further, creation of appropriate infrastructures is required to
supplement canal water and groundwater

30
AGRICULTURE PART I
○ Example: Moisture sensors and automated irrigation systems which can be

controlled by farmer using mobile phone can help in deciding time and amount of
irrigation to be carried out
● More crop per drop: For this, we need paradigm-shift in our thinking and strategy to not just
increase land productivity measured as tonnes per hectare (t/ha) but also maximise applied
irrigation productivity measured as kilograms or Rs per cubic meter of water (kg/m3)
○ If we have to use our water more wisely in agriculture, two crops—rice and
sugarcane—deserve special attention. As per NABARD-ICRIER study on
water productivity mapping, these two crops consume almost 60% of India’s
irrigation water
○ There is need to realign cropping patterns based on per unit of applied irrigation water
productivity
■ Example: drip-irrigation pilots project for paddy in Karnal (Haryana) and
Tamil Nadu and for sugarcane in Maharashtra, Karnataka and Andhra Pradesh
indicates that: while it takes 3,065 litres of water to produce 1 kg of paddy
grain (yield level 7.75 t/ha) under traditional flood irrigation, under drip,
requirement can be reduced to just 842 litres
○ Punjab government, along with World Bank, has launched certain pilots under its
Paani Bachao Paise Kamao policy to encourage rational use of water among
farmers
■ Under the initiative, water-metres are installed on farmers’ pumps, and
if they save water/power compared to what they have been using
(taken as entitlement), they get paid for those savings, with direct transfers
to their bank accounts
● Crop Diversification: Crop diversification can be used as a tool to promote sustainable
agriculture, reduction in import dependence and higher incomes for the farmers
○ Existing cropping pattern is skewed towards cultivation of sugarcane, paddy
and wheat which has led to depletion of fresh ground water resources at an
alarming rate in many parts of India
○ According to Economic survey 2021-22, regions where crops like paddy, wheat and
sugarcane are grown have high to extremely high water stress levels
○ Report of DFI Committee suggests that shifting some area from staple cereals to
high value produce can lead to a sizable increase in the returns for farmers. The
Report further states that this would also bring in water use efficiency and
sustainability of soil health
○ Crops Diversification Programme (CDP) is being implemented in original
green revolution states viz. Punjab, Haryana and Western UP as sub scheme of
Rashtriya Krishi Vikas Yojana (RKVY) since 2013-14 to shift area under paddy
cultivation towards less water requiring crops such as oilseeds, pulses,
coarse cereals, nutri cereals, cotton, etc
● Drainage for water logging and salinity in major irrigation commands: Problem of
water logging and salinity requires conjunctive water use with emphasis on ground water
pumping to dewater aquifer
○ Further, drainage system should be put in place using suitable horizontal pipe drainage,
vertical pipe drainage and optimally designed multiple well point drainage system
● Pricing of water, power, and even fertilisers: It is time to switch from highly
subsidised pricing of water, power, and even fertilisers, to direct income support on
a per hectare basis and investment policies that help with newer technologies and innovations
○ Water and power need to be priced as per their economic value or at least to
recover significant part of their costs to ensure sustainable agriculture
● Micro irrigation: Increased coverage under micro irrigation can be most effective mode of
water conservation

31
AGRICULTURE PART I
○ With objective of facilitating States in mobilising resources for expanding coverage of

micro irrigation, Micro Irrigation Fund (MIF) with corpus of ₹ 5000 crore was
created with National Bank for Agriculture and Rural Development
(NABARD) during 2018-19
○ Moreover, Government of India is promoting micro irrigation viz. Drip and
Sprinkler Systems in Country for enhancing water use efficiency at farm level under
Per Drop More Crop component of Pradhan Mantri Krishi Sinchayee Yojana
(PMKSY-PDMC) from 2015-16
Schemes and Programmes related to Irrigation in India

Pradhan Mantri Kisan Sinchayee Yojana (PMKSY)
● Launched in 2015 with the motto of "Har Khet Ko Paani"
● To expand cultivated areas with assured irrigation, reduce wastage of water and improve water
use efficiency
● PMKSY not only focuses on creating sources for assured irrigation, but also creating protective
irrigation by harnessing rainwater at micro level through "Jal Sanchay '' and "Jal Sinchan ''
● Micro irrigation is also incentivized through subsidies to ensure "Per drop-More crop"
● PMKSY is supervised and monitored by Inter-Ministerial National Steering Committee (NSC)
o NSC is constituted under Chairmanship of Prime Minister with Union Ministers from
concerned Ministries
Objectives of PMKSY
● Achieve convergence of investments in irrigation at field level (preparation of district level and, if
required, sub-district level water use plans)
● Enhance physical access of water on farm and expand cultivable areas under assured irrigation
(Har Khet Ko Pani)
● Integration of water source, distribution and its efficient use to make best use of water through
appropriate technologies and practices
● Improve on-farm water use efficiency to reduce wastage and increase availability both in
duration and extent
● Enhance adoption of precision - irrigation and other water-saving technologies (More Crop Per
Drop)
● Enhance recharge of aquifers and introduce sustainable water conservation practices
● Ensure integrated development of rainfed areas using watershed approach towards soil and
water conservation, regeneration of groundwater, arresting runoff, providing livelihood options
and other NRM activities
● Promote extension activities relating to water harvesting, water management and crop
alignment for farmers and grass root level field functionaries.
● Explore feasibility of reusing treated municipal wastewater for peri-urban agriculture
Components of PMKSY
● Accelerated Irrigation Benefit Program (AIBP) - aims to concentrate on speedier
fulfilment of continuous Major and Medium Irrigation including National Projects
● Har Khet Ko Pani (HKKP)-
o Creation of new water sources through minor water systems (both surface and
groundwater)
o Repair, reclamation, and redesign of conventional water bodies
o Charge range advancement
o Fortifying and production of dispersion organised from sources to the ranch
o Creating and rejuvenating traditional water storage systems like Jal Mandir (Gujarat);
Khatri, Kuhl (H.P.); Zabo (Nagaland); Eri, Ooranis (T.N.); Dongs (Assam); Katas,
Bandhas (Odisha and M.P.), etc. at feasible locations

32
AGRICULTURE PART I
● Per Drop More Crop (PDMC) - focuses on improving efficiency of water usage by various
initiatives like precision water application devices, construction of micro-irrigation structures to
supplement source creation activities, including tube wells and dug wells, etc
● Watershed Development (WD) - aims at Ridge territory treatment, seepage line treatment,
soil and dampness protection, water reaping and other watershed intercessions
Pradhan Mantri Krishi Sinchayee Yojana: Progress so Far and Potential Benefits
● Increase in Irrigation Potential: Against ultimate irrigation potential of 76.03 Lakh ha, an
irrigation potential of 63.85 Lakh ha has been created
● Increase in Micro-irrigation: An area of 20.39 lakh ha has been covered and about 16 lakh
farmers were benefited under micro-irrigation during 2019-20 & 2020-21
● Benefiting small and marginal farmers
o More than 22500 irrigation wells have been constructed and a command area of more
than 37700 ha has been created, benefiting nearly 36000 small and marginal farmers
o PMKSY has been implemented for small tea growers in Bengal and can help them get
high income
o Interest Subvention by Government under Micro Irrigation Facilities (MIF) has been
regularly released to NABARD to further help small and marginal farmers
● Production of different crops: Benefits can be seen in growth of different types of
agricultural produce like - soya bean, wheat, maize and sorghum (jowar) etc
o Increase in irrigated area is allowing farmers to completely shift to growing horticulture
crops such as potato, tomato, chilli, garlic, ginger and onions
● Training to Farmers: With the help of Agriculture Skill Council of India, various training
programs have been designed to help rural youth in increasing irrigation potential
● Inculcating the Culture of Precision Farming and Judicious Water Use: Also trying to
inculcate the habit of precision farming between farmers with its focus on drip and sprinkler
irrigation. It will be very useful for Indian agriculture seeing unpredictable nature of monsoon
every year
● Alignment with the Sustainable Development Goals (SDG): If scheme is implemented
properly, it will not only help in achieving India’s climate agenda for 2030 but will also provide
various other social, economic and environmental co-benefits - SDG1 (reducing poverty),
SDG2 (increasing agricultural productivity), SDG 6 (judicious use of water), SDG8
(economic growth) and SDG12 (sustainable production)
Pradhan Mantri Krishi Sinchayee Yojana: Challenges

● Delay in Project’s Completion: According to report of parliamentary standing committee
on rural development, only 10% of projects taken up under watershed development component
of PMKSY have been completed
o There are various deficiencies in management of work under scheme such as inaccurate
project planning and substandard execution
● Financial Constraints: Parliamentary Standing Committee had found out that there are
financial constraints both in respect of Central share as well as State share
o Inefficient fiscal management: Central Water Commission and project authorities
are not adopting uniform parameters to calculate benefit-cost ratio (an indicator of
economic viability) of projects
o Wastage of public money: Detailed Project Reports of 14 major and medium
projects (sanctioned cost of Rs 10,551 cr) have not been made available for audit
o Undue benefits to contractors
● Unequal Funding to different Components of Scheme: Total area under Micro Irrigation
is about 9 million ha, while potential for Micro Irrigation is almost 10 times more, if micro
Irrigation is treated at par with AIBP in terms of funding

33
AGRICULTURE PART I
● Frequent Revision: Parliamentary Committee on AIBP noted that criteria for inclusion of
project under the scheme have undergone frequent revisions displaying discontinuity in original
plan of scheme
● Apathy of States: Some states do not come up with their share of the subsidy, while in some
states, the approval for spending does not come on time; as a result, several targets remain
unmet in many states
o Central government was unable to get response from Uttar Pradesh government on
suspected irregular expenditure of Rs 1.5 crore and unable to recover suspected
irregular payment of Rs 2.6 crore from Karnataka government
● Inadequate Monitoring and Timely Action: According to CAG report, lack of adequate
and effective monitoring and timely action to deal with breaches and damages to created
infrastructure both contributed to poor progress of works as well as inadequate maintenance of
assets already created for scheme
● Corruption: In Maharashtra, only 26 projects had seen long delays and allegations of
corruption
● Lack of Involvement of local population: Since projects are aimed at welfare of population
residing in those areas, they are an important stakeholder in project and as such, they are
required to be involved in project pragmatically and more actively
● Convergence Matrix: Some States like Tamil Nadu, Andhra Pradesh, Telangana & Bihar have
shown good progress in convergence. However, all participating States have not yet created an
institutional arrangement at field level for effective convergence
Way forward
● Standardised Approach: Ministry of Jal Shakti should consult all stakeholders and state
governments and assess the need for comprehensive revision of the guidelines
o Better coordination with the States for the effective progress of the projects.
o Preparation of Detailed Project Report through credible agencies
● Focus on Objectives: Deficiencies in preparing and processing of Detailed Project Reports
such as delays, inadequate surveys, and inaccurate assessment of command area be rectified
● Efficient Fiscal Management: Adopt uniform parameter for calculation of cost-benefit
ratio
o Reviewing need for Budgetary Allocation
o Action be taken against those responsible for the wastage of public money
o Projects should be open to more audits
o Fixing accountability for reasons of inordinate delay in projects.
● Management by States: State governments need to ensure appropriate checks in
management of works and fix accountability for deficiencies
o Development of Convergence Matrix: Other State Governments need to follow
example set by States like Telangana, Tamil Nadu and go for convergence for different
schemes for producing effective results in the projects
o Central government should put in place mechanism to monitor due diligence of states
● Efficient Monitoring: Government needs to take steps to reduce variations between
satellite imagery and field verifications by working with remote sensing authorities. There
is also a need to strengthen participatory model
● Imparting livelihood skills in areas of projects: 'Kaushal Vikas Centres' be opened in areas
of project in tune with objectives of PMKSY so that livelihood skills associated with projects are
imparted to rural households for a better outcome of the project
Atal Bhujal Yojana (ABHY)

● Implemented by Ministry of Jal Shakti
● Scheme is being funded by Government of India and World Bank on a 50:50 basis
● Central sector scheme worth Rs.6, 000 crore for sustainable management of groundwater
with community participation

34
AGRICULTURE PART I
● Envisages people's participation through formation of ‘Water User Associations’, water

budgeting, preparation & implementation of Gram-panchayat-wise water security
plans, etc
● Identified over-exploited and water-stressed areas for implementation of scheme are
Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh.
● States have been selected according to degree of groundwater exploitation and degradation,
established legal and regulatory instruments, institutional readiness, and experience in
implementing initiatives related to groundwater management
Potential benefits of Atal Bhujal Yojana

● Incentivising demand‐side and Effective supply‐side measures: Program is designed to
operationalize results orientation of scheme by incentivizing participating States to
improve planning and implementation of investments and groundwater management actions
● Participatory Planning and Community Empowerment: Program is anchored in planning
and groundwater management led by an informed community
● Bottom-up Approach: Process will start with preparation of multi-year plans at Gram
Panchayat level. This will provide power to local communities in decision-making
● Capacity Building: Program focuses on capacity building of institutions at central, state, and
district levels. It will strengthen skills for inclusive and effective groundwater management
● Convergence Matrix: Encourages convergence of government programs and plans for more
coordinated interventions - such as MGNREGA and PMKSY, as well as other central
government and state government schemes. This will cut cost and prevent duplicity of schemes
● Inculcating Behavioural Change: supports behavioural change needed for long-term water
resource management
● State specific Approach: Program envisages State-specific institutional framework for
sustainable groundwater management, enhancing groundwater recharge and improving water
use efficiency. Different geographical regions need different approaches for success of program
● Environmental Benefits: Program benefits natural environment by mitigating some of the
ongoing impacts associated with excessive groundwater withdrawal - example, potentially
through increase of base flows into streams and associated ecosystem
● SHE Factor: In comparison to male members of family, women and girls disproportionately
bear burden of water scarcity
o Focuses on mobilisation of women for their active participation in planning and
decision-making process
Challenges of Atal Bhujal Yojana

● Non-Exclusion: States like Punjab where groundwater situation has been in an alarming stage,
have not been included in initial stage, even after state’s own request
● Lack of Funds and Underutilization of Funds: For financial year 2020-21, budget estimate
was kept at Rs. 200 crore which was later reduced to Rs. 125 crore, i.e. by 37.5 %
o Department Of Water Resources, River Development & Ganga Rejuvenation could not
utilise the allotted fund, even less than 50 %
● Environmental Concerns: Focuses on measures to reduce water consumption through
improved irrigation and crop management. Estimated that 1% increase in area irrigated with
groundwater leads to a 2.2% increase in greenhouse gas (GHG) emissions
● Lack of Information Base: Currently, requisite information base is lacking, and dissemination
to lowest level is inadequate
● Improper Institutional Arrangements: Groundwater management in India is extremely
complex, with a wide array of laws, policies, and institutions operating at various levels.
Fragmented and sometimes conflicting roles and responsibilities of various entities involved at
central, state, and local levels inhibit effective groundwater management

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AGRICULTURE PART I
● Fiduciary Incapacity: Strengthening fiduciary capacity will aim to bridge gap in financial
management and procurement skills as well as gaps in fiduciary systems, including procurement
planning, monitoring, evaluations, and procurement review and auditing
● Subsidies and Challenges: Depletion of India’s groundwater resources is attributed to
private investment and inappropriate use of public subsidies (including energy)
● Risks of social and political conflicts: In water‐scarce areas, in some cases sourcing urban
drinking water on a large scale from rural areas may lead to rural‐urban resource conflicts
● Limited awareness /communication at ground level: Limited awareness on notification of
blocks and implications of such notification in communities as well as in Panchayat Raj
Institutions
● Exclusion of women: If special efforts for mobilisation and affirmative action are not put in
place, women run the risk of getting excluded in planning and management
● Inefficient Grievance Mechanism: Lack of robust systems for grievance management and
citizen feedback create risks of unresolved complaints and gaps in implementation
Way forward
● Inclusion of all: In next phases of program, focus should be on inclusion of more states
● Efficient irrigation: A 1% increase in irrigation efficiency will reduce GHG emissions by 20%.
The introduction of drip irrigation and shifting to low‐water/high‐value crops are crucial in the
context of climate change because these practices reduce groundwater use and CO2 emissions
(while still pumping up groundwater and irrigating a larger area)
● There is need for adequate focus on resources which are polluting groundwater
resources too
● Community participation and awareness can be increased with help of SHGs and local
NGOs. SHGs will also provide women participation
● Need to establish robust system for citizen feedback and to set up an efficient grievance
redress mechanism
● Proper training of staff can solve issue related to capacity building
● Social and political conflicts can be solved by educating people about issues by building
capacity building pool of local people, administrators, social workers etc
● Use of technology can solve problem related to data and related misinformation
National Hydrology Project (NHP)

● To achieve sustainable development and management of water resources, Ministry of Jal
Shakti (MOJS) is implementing National Hydrology Project (NHP) with active participation
of states
● Central Sector Scheme and implemented by Department of Water Resources, River
Development and Ganga Rejuvenation with support from World Bank
● Project has coverage on Pan India basis and intends to set up a system for timely and reliable
water resources data acquisition, storage, collation, management and dissemination
Potential benefits of NHP

● Supplementing Other Schemes: can help in assessment of surface and ground water
resources in river basin for better planning & allocation for PMKSY and other schemes
o Information gathered through NHP will immensely help in River Interlinking Projects
and Inland waterways
● Efficient operation of Water Reservoirs: Reservoir operations can be efficiently managed
through seasonal yield forecast
● Increasing Agricultural Productivity: Information on water can help in predicting water
availability and help farmers to plan their farm related activities
● Capacity Strengthening: It will strengthen the capacity of existing institutions to assess water
situation and equip them with real-time flood forecast systems across country

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AGRICULTURE PART I
● Help to community: Populations affected by floods and droughts, especially poor rural
people, can plan in advance to build resilience against flooding and droughts due to uncertainties
of climate change
● Building a proper plan for Disaster: With correct information available, disaster
management authorities can plan better for upcoming environmental disasters
Challenges of NHP
● Underutilisation of Funds: Persistently under-utilisation of budgetary allocations under
scheme during last few years - expenditure of mere Rs. 177.89 crore and Rs. 79.22 crore vis-a -
vis allocation of Rs. 300 crore and Rs. 250 crore during FY 2017-18 and 2018-19, respectively
● Disparity between Budgeted And Revised Estimates: There has been disparity between
Budgeted and Revised Estimates except for year 2019-20 when allocation has remained same i.e.
Rs. 150 crore
● Slow Pace: As most activities under NHP are of scientific nature and also spread over remote
locations of country, these involve challenges related to field implementation and hence slow
pace of the project
● In-sufficient manpower: National Hydrology Project is being implemented through
involvement of around 48 Implementing Agencies. These agencies are facing issue of outsourcing
● Issues with Data Collection:
o Unavailability of reliable historical data because of lack of positive approach by previous
governments
o Collecting data from scattered agencies is a major hurdle in effective water resource
management
Long Term Irrigation Fund (LTIF)
● Announced in Budget 2016-17 with an initial corpus of Rs 20,000 crores for funding
and fast tracking implementation of incomplete major and medium irrigation projects
● Aims to bridge resources gap and facilitate completion of 99 prioritised irrigation projects as
part of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
● Under LTIF, NABARD has provided loans towards central share as well as states share from
2016-17 to 2020-21
● From 2021-22 onwards, LTIF funding arrangement is in operation towards state share only
Micro Irrigation Fund
● Operationalised in 2019-20 with initial corpus of Rs 5,000 crore in NABARD to facilitate
state governments efforts in mobilising additional resources for expanding coverage under
micro-irrigation
● Nodal ministry under fund is Ministry of Agriculture and Farmers’ Welfare
● Under funding arrangement, loans are extended to participating State Governments with 3%
Interest Subvention from GoI
● In Budget 2021-22, augmentation of fund with additional Rs 5,000 crores was announced
which is under consideration of GOI
Labour
● As per Agriculture Labour Enquiry Committee, agricultural labourers are those who derive
their major income by working on farms of others for a wage
● Agricultural labourer has no right of lease or contract and has no risk in cultivation of
land
Problems faced by Agriculture labourers in India

● Marginalisation of Agriculture and Labour Productivity
○ Share of Agriculture in country’s GDP has declined from 55.3% in 1950-51 to 18.8% in
2021-22. On other hand, Number of agricultural labourers increased from 27.3 million
in 1950-51 to 144.3 million in 2011

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AGRICULTURE PART I
○ This in turn has led to problem of disguised unemployment as number of

workers engaged in agriculture is far more than what is required
● Dependence on monsoon
○ Over 50% of areas are still unirrigated in India and depend upon monsoon rains. In
these areas, both cultivators and agricultural labourers are very vulnerable
● Unorganised nature of agriculture
○ Agricultural wages and family incomes are very low in India and are not fixed (depends
upon crop production)
○ Hence, living underprivileged and insecure life with no social security and high
uncertainty
● Low wages for women in agriculture labour
○ Female agricultural workers are generally forced to work harder and paid less than
their male counterparts
● Employment and working conditions
○ Agricultural labourers face problems such as underemployment and unemployment.
They work only for some part of year, and rest of the time, they remain idle because
there is no work on farm or there is no alternative work available for them
● Indebtedness
○ Due to low banking penetration and lack of availability of other institutional sources of
finance in rural areas, farmers are forced to take loans from local moneylenders at
unfavourable terms and high interest rates which eventually pushes them into debt
● High incidence of child labour
○ Rate of child labour is very high in agriculture sector as they are easily vailable as well
as can be employed at low wages
● Increase in migrant labour
○ Green Revolution significantly increased remunerative wage employment opportunities
in pockets of assured irrigation areas while employment opportunities nearly stagnated
in vast rain fed semi-arid areas causing migration from rainfed and dry areas to heavy
rain and assured irrigation areas
Measures taken by the government

● Minimum Wages Act, 1948
○ Provided for fixing minimum wages of agricultural labourers
● Abolition of Bonded labour
○ Historically, people have been exploited as bonded labourers, especially in agriculture.
○ In 1976, Bonded Labor System (Abolition) Act was passed. According to this act, about
2.51 lakhs of bonded labourers were identified and freed in different parts of the
country
● Provision of housing sites
○ Various states have passed laws for providing housing sites in villages to agriculture
workers
● Special schemes for providing employment
○ Various employment schemes have been run by government to ensure employment of
the workers
■ Food for Work Programme
■ Rural works Programme
■ Jawahar Rozgar Yojana
Feminisation of Agriculture
● Refers to increasing number of female workers in agriculture sector
● Economic survey 2017-18 says that with growing rural to urban migration by men, there
is ‘feminization’ of agriculture sector, with an increasing number of women in multiple roles
as cultivators, entrepreneurs and labourers

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AGRICULTURE PART I
● According to Census 2011, out of total female main workers, 55% were agricultural
labourers and 24% were cultivators
Challenges faced by women in agriculture
● Lack of ownership of land
○ As per census 2011, only 12.8% of operational landholdings are owned by women
which deters women farmers to approach banks for institutional loans as banks
usually consider land as collateral
● Non-recognition of their work as it is usually considered as their responsibility
● Lack of education and skills of women farmers impacts their productivity
● Women farmers in India often face gender discrimination
● When compared to men, women generally have less access to resources and modern
inputs (seeds, fertilisers) to make farming more productive
● With the ongoing innovation in agriculture and introduction of new technology to automate
specific manual labour, women may lose their jobs because they are often responsible
for manual duties.
Government measures to encourage women’s participation in agriculture
● Government is earmarking at least 30% of budget allocation for women
beneficiaries in all ongoing schemes and development activities
● Kisan credit cards are issued to women farmers
● Giving preference to women in government schemes like organic farming, formation
of Farmer Production Organisation (FPOs)
● Promotion of Women Self Help Groups (SHGs) and linking them to micro-credit
through capacity-building activities
Farm Mechanisation
● Refers to development and use of machines that can take place of human and animal
power in agricultural processes
● Essential input in modern agriculture enhances productivity, besides reducing human drudgery
and cost of cultivation. Also helps in improving utilisation efficiency of other inputs, safety and
comfort of the agricultural worker, improvements in quality and value addition of the produce
Trends in Farm Mechanisation

According to Economic survey 2021-22, mechanisation in farm operations for major crops in India in
2019-20 has been 70, 38, 31 and 32 percent in seed bed preparation, sowing/planting/transplanting,
weeding- interculture & plant protection and harvesting & threshing, respectively
Benefits of farm mechanisation

● Reduce drudgery of human beings and draught animals
● Enhance the cropping intensity
● Precision in metering and placement of inputs
● Timelines of efficiency of utilisation of various crop inputs (seed, chemical, fertiliser, irrigation,
water etc.)
● Reduces losses at different stages of crop production
● Better turnout in shorter time
● Reduces need for hiring Agricultural labourers which has become costly as well difficult due to
high rural to urban migration
Challenges
● Low mechanisation in India
○ Small landholdings, dominance of small and marginal farmers, lack of institutional credit
to farmers, low awareness among farmers are responsible for lower penetration of
mechanisation in India

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AGRICULTURE PART I
○ Small-marginal farmers lack financial resources to own or hire farm machinery

● limited Research and Development
○ India has huge soil and climatic diversity, and hence Research and Development is
needed for customised machinery which is suited for local conditions
● Regional disparities
○ North India has higher level of mechanisation than other regions of country. This is also
due to success of Green Revolution in north India
Government measures for Farm Mechanisation

Sub-Mission on Farm Mechanisation
● Government of India is implementing Sub-Mission on Agriculture Mechanization which
was launched in 2014-15 to promote inclusive growth of farm mechanisation to enhance
productivity.
● Provides for establishment of Custom Hiring Centres, Farm Machinery Bank, High-tech Hubs
● As of December 2022, 21628 CHCs and 467 Hi-Tech hubs and 18306 farm machinery banks
have been established
Various components of the mission are

● Promotion and strengthening of farm mechanisation through training, testing and demonstration
● Demonstration, Training and Distribution of Post-harvest technology and management
● Financial assistance for procurement of agriculture machinery and equipment
● Establishing Farm machinery banks for Custom hiring.
● Establishing Hi-Tech, High Productive Equipment hub for custom hiring
● Promotion of farm mechanisation in selected villages in low mechanised states
● Financial assistance on per hectare basis to the beneficiaries hiring machinery/equipment from
custom hiring centres in low mechanised states
● Promotion of farm machinery and equipment in the North-Eastern region
In-situ crop residue management

● Special scheme was launched for in-situ management of crop residues in Punjab, Haryana,
Delhi and Uttar Pradesh due to problem of paddy stubble burning before sowing of wheat in
months of October and November
● Machines and equipment are provided for in-situ crop residue management with 50
percent subsidy to individual farmers and 80 percent subsidy for establishment of Custom Hiring
Centers
FARMS App (Farms Machinery Solutions App)

● It will help local farmers and citizens across country in availing custom hiring services
of Farm Machinery Banks (FMB), Custom Hiring Centers (CHC) and Hi-Tech Hubs established
under various government schemes
● Will help individual farmers, willing to provide their agriculture machinery & equipment on
rental basis to increase their farm income.
● Will facilitate optimum utilisation of available agricultural machines available in
CHCs/FMBs/Hi-Tech Machinery Hubs
● Will also provide platform for sale and purchase of old agriculture machinery to
farmers
Pesticides
● Any species of plant, animal or pathogenic agent that is unwarranted or injurious to plants,
animals, humans and environment. They are chemical or biological substances used to control or
destroy pests
● Includes insecticides, herbicides, fungicides etc. Examples, Neem oil, Pyrethrin, Carbofuran etc

40
AGRICULTURE PART I
Biopesticides
● Pesticides derived from such natural materials as animals, plants, bacteria, and certain
minerals
● Example: canola oil and baking soda have pesticidal applications and are considered
biopesticides
● Biopesticides are not hazardous to human health, and they are essential to maintain the
biodiversity of an ecosystem
Weeds
● Undesirable plants which grow in the field along with the crop
● They compete with crop plant for various resources like sunlight, water, nutrients etc. Also,
they act as a host to pests and pathogens
● Due to above factors, weeds reduce yield of crops and farmers need weedicides to remove
them. But these weedicides are also harmful to human health
○ Example: Glyphosate is a weedicide/herbicide which is often categorised as a
probable carcinogen for humans
● Integrated Weed Management
○ Weed management technique based on combination of preventive, cultural,
mechanical, and chemical practices
○ A single technique is not effective for controlling weeds due to number of different
weed species and their diverse life cycles and survival strategies
Acts related to Pesticides

Insecticides Act, 1968
● Regulates import, manufacture, sale, transport, distribution and use of insecticides and pesticides
in order to prevent risk to human beings and animals
● Central Insecticides Board is also established under act to advise government on matters
related to administration of act
Pesticides Management Bill,2020

● It seeks to regulate manufacture, import, sale, storage, distribution, use and disposal of
pesticides
○ To ensure availability of safe pesticides
○ Minimise risks to humans, animals and environment
● Features of the bill
○ Licences are needed for a person to manufacture, stock, sell or distribute pesticides
■ Also, a person seeking to import or manufacture a pesticide is required to
obtain a certificate of registration for the pesticide
○ Central government can regulate prices of pesticides if it deems necessary or
to ensure distribution and availability of pesticides at fair prices
○ Central and State governments may prohibit distribution, sale or use of a
pesticide in an area for a period up to 1 year
○ Highly hazardous pesticides (class-I pesticides by WHO due to toxicity) are to be
used only after prescription
○ Central fund will be created to provide compensation in case of any loss due to
low quality of pesticides
○ Promotion of organic pesticides will be undertaken
Issues related to pesticides usage in India

● Pesticides include toxic chemicals which affect health of farmers in medium and long term
causing a broad range of nervous system symptoms like headache, fatigue etc

41
AGRICULTURE PART I
● Pesticides are also Persistent Organic Pollutants (POPs) and are able to biomagnification
and bioaccumulation. Hence, pesticides move up food chain and ultimately reach humans/end
consumers impacting their health
● Continuous use of pesticides has negatively impacted soil health and reduced agricultural
productivity
● There have been instances of illegal use of banned pesticides, black marketing etc
Way forward
● Creating awareness among farmers regarding judicious use of pesticides
○ This can be done by strengthening extension system including Krishi Vigyan Kendras,
ICAR institutions, Agriculture Universities and toll-free helpline systems
● Minimising use of harmful chemical pesticides by promoting use of bio-pesticides
● Proper regulation of pesticides
○ State governments should have power to regulate pesticides as they have
better idea about agro-ecological aspects in their state
○ Government should ban class-I pesticides as per WHO classification
○ Pesticides should be regulated like drugs, which are not advertised and can not
be promoted directly to consumer
● Proper Labelling and packaging of pesticides
○ There should be proper labelling and guidelines mentioned in packet to guide end user
on how to use, handle and safely dispose of the contents of the package
● Government should ensure that companies selling pesticides provide safety gear along
with pesticides
○ Agriculture extension machinery should teach farmers about proper usage of Personal
Protective Equipment (PPE) kits while applying pesticides in their fields
● Adopt Integrated Pest Management (IPM)
○ IPM combines biological, cultural and chemical practices to control pests in agricultural
production
○ Natural predators or parasites are used to control pests, and selective pesticides are
used only as backup when pests are unable to be controlled by natural means
Agricultural finance
● Farmers need access to cheap financing to pay for inputs needed like seeds, fertilisers, pesticides
etc
○ Also needed for agricultural marketing, post-harvest storage and transport of produce,
meeting the risks like damage due to pests, diseases
● Access to institutional credit helps farmers to get loans at cheaper interest rates and prevent
them from falling into clutches of money lenders who often lend at higher interest rates and
push farmers into debt traps
● Depending on period for which finances are required, financial needs of farmer for agriculture
may be broadly classified into three categories as follows:
○ Short term credit (<15 months)- Required by farmers for purchasing seeds
and fertilisers, paying wages and meeting other casual expenses. It is generally
repayable out of proceeds of next harvest
○ Medium-term credit (15 months – 5 years)- Required by farmers to purchase
livestock, water pumping machinery, expensive implements, etc. Loan is
repayable in instalments spread over two to five years
○ Long-term credit (> 5 years)- This gives farmers means to purchase additional
land or to carry out permanent improvements on land such as drainage and
irrigation. The returns from investments on such items are very slow and hence
farmers can repay loan only in small amounts over a substantially long period

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AGRICULTURE PART I
Sources of Agricultural finance in India

Institutional sources
● Cooperatives- Three-tier cooperative credit structure in India for providing short term and
medium term loans to farmers
○ Primary Agriculture Credit Societies (PACS) at village level
○ District Central Cooperative Banks (DCCB) at district level
○ State Cooperative Banks at state level
○ Other than these, there are Primary Cooperative Agriculture and Rural Development
Banks (PCARDBS) to provide long term loans for agriculture
● Commercial Banks and Regional Rural Banks (RRBs) provide both short- and medium-term
loans for agriculture and allied activities.
Primary Agricultural Credit Societies (PACS)

● Came to existence after passing of Cooperative Credit Societies Act 1904
● Functions on premise of cooperative principles of voluntary participation, democratic
management, restricted space of operation and indebtedness
● Work at village level and generally advance loans for productive goals
Non Institutional sources

● These include moneylenders, traders and Commission agents
● Share of moneylenders in total farm credit has declined due to malpractice like manipulation of
accounts and charging exorbitant rate of interest on their loan, often 24 percent and over
Measures taken to enhance agricultural credit

Establishment of National Bank for Agriculture and Rural Development (NABARD)
● Established by Government of India on recommendation of B. Sivaraman Committee which
was constituted by RBI in 1979 to review arrangement for institutional credit for agriculture and
rural development
● Statutory body as it was constituted under NABARD Act, 1981 passed by parliament
● Came into existence on 12 July 1982 by transferring agricultural credit functions of RBI and
refinance functions of the then Agricultural Refinance and Development Corporation (ARDC)
● Set up with an initial corpus of Rs 100 crores
● Today, it is fully owned by Government of India
Functions of NABARD
● Provides refinancing to Rural Finance Institutions for short-term and long-term purposes
for farm and off-farm activities in rural areas
○ Provides short-term, medium-term and long-term credits to state co-operative
Banks, Regional Rural Banks, Land Development Banks and other financial institutions
approved by RBI
● Provides loans to state governments for developing rural infrastructure and strengthening
of Cooperative credit structure
● Assist in policy formulation of Government of India, RBI and State governments on matters
related to agricultural credit and rural development
● Institutional development and capacity building of cooperatives and RRBs to strengthen
rural credit delivery system
● Inspection of RRBs, State Cooperative Banks and District Central Cooperative Banks
● Also supports financial inclusion initiatives of RRBs and cooperatives
● Thrust on promotion of livelihood opportunities and micro enterprises
● Support for research and development, rural innovations etc. It maintains a Research and
Development Fund for the same

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AGRICULTURE PART I
Key Provisions of NABARD (Amendment) Act, 2017

● Increase in capital of NABARD
○ Enabled Union government to increase authorised capital of NABARD from Rs 5,000
crore to Rs 30,000 crore
● Change in the ownership
○ Transferred share capital held by RBI to Central government bringing it under 100%
control of government
● Changes related to MSME
○ Replaces terms ‘small-scale industry’ and ‘industry in the tiny and
decentralised sector’ with terms ‘micro enterprise’, ‘small enterprise’ and ‘medium
enterprise’ as defined in the MSME Development Act, 2006
● NABARD started pilot project SHG-Bank Linkage Programme in 1992 which also involves
disbursal of agricultural credit
● Joint Liability Groups (JLG) Scheme was initiated by NABARD in 2006 to enhance credit flow
to share-croppers/tenant farmers who do not have land rights
Annual target of the government

● Government has been increasing target of agricultural credit every year with target of Rs 18.5
lakh crores fixed for FY 2022-23 which was increase of Rs 2 lakh crores from previous year
(2021-22)
● In Budget 2023-24, government has set a target of Rs 20 lakh crore for agriculture credit
● Government of India implements two schemes to enhance agricultural credit- Kisan Credit
Cards & Interest Subvention Scheme
Kisan Credit Card (KCC) Scheme

● Launched by government in 1998 for farmers to empower them to purchase agricultural
products and services on credit at any time
● Farmers can use these cards to readily purchase agriculture inputs such as seeds,
fertilisers, pesticides etc. and draw cash for their production needs
● In 2004, scheme was extended to farmers engaged in allied and non-farm activities
● The scheme was further extended to fisheries and animal husbandry farmers in 2018-19
● In 2020, government of India launched revised Scheme to Kisan Credit Card which aims
at providing adequate and timely credit support from banking system under a single window
with flexible and simplified procedures to farmers for their cultivation and other needs
● Provides facility of ATM enabled Rupay card, one time documentation, any number of drawals
within the limit
● Implemented by Commercial Banks, RRBs, Cooperative Banks and Small Finance Banks
Purpose/Use case of KCC

● To meet short-term credit requirements for cultivation of crops;
● Post-harvest expenses;
● Produce marketing loan;
● Consumption requirements of farmer household;
● Working capital for maintenance of farm assets and activities allied to agriculture;
● Investment credit requirement for agriculture and allied activities
Eligible Beneficiaries: Small and marginal farmers, sharecroppers, oral lessee and tenant farmers,
Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers

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AGRICULTURE PART I
Achievements of KCC
● As part of Atma Nirbhar Bharat Package, Government in 2020 announced to cover 2.5
crore farmers under Kisan Credit Card (KCC) scheme with a credit boost of Rs. 2 lakh crores
through a special saturation drive
● As of 30 December 2022, banks issued Kisan Credit Cards (KCC) to 3.89 crore eligible
farmers with a KCC limit of ₹4,51,672 crore
Interest Subvention scheme

● Now known as Modified Interest Subvention Scheme (MISS), aims to provide short-term
credit to farmers at subsidised interest rates
● Launched in 2006-07, Implemented by RBI and NABARD through banks
● Farmers are provided short-term loan up to Rs 3 lakh at an interest rate of 7 percent
per annum with an additional 3 percent subsidy to ensure prompt and timely repayment of
loan by farmers
● Includes all types of farmers including those engaged in Animal Husbandry, Poultry, Fisheries,
Dairying
● Interest subvention for post-harvest loans
○ As a measure to check distress sale, post-harvest loans for storage in accredited
warehouses against Negotiable Warehouse Receipts (NWRs) are available for up to 6
months for KCC holding small & marginal farmers
● Interest subvention for relief to farmers affected by natural calamities
○ To provide relief to farmers affected by Natural Calamities, interest subvention of 2%
will be provided to Banks for first year on restructured amount. Such restructured
loans will attract normal rate of interest from second year onwards as per policy laid
down by RBI
Negotiable Warehouse Receipts (NWRs)

● Documents issued by warehouses to depositors against commodities deposited in warehouses
● In India, farmers can seek loans from financial institutions against commodities stored in
Warehouse Development Regulatory Authority (WDRA) registered-godowns
● Farmers can take their produce to these godowns and in exchange are issued Negotiable
Warehouse Receipts
○ These receipts can be used to take loans from the banks
○ These receipts are transferable so that farmers can sell their produce without physically
transporting them to buyers
Warehouse Development Regulatory Authority
● Set up under Warehousing (Development and Regulation) Act,2007
● Main objective of WDRA is to implement Negotiable Warehouse Receipt (NWR)/electronic-
Negotiable Warehouse Receipt (e-NWR) so that farmers (as well as businesses) are
encouraged not to sell their produce immediately after harvest when prices tend to be
lowest in the year.
○ They can store their produce in WDRA-registered warehouses that have to issue
NWR/e-NWR to them
e-NWR scheme
● Launched by WDRA in 2018 for issuing NWRs electronically
● For this, WDRA has set up a portal for online registration of warehouses
● Also set up two Repositories for creation and management of electronic Negotiable Warehouse
Receipts (e-NWRs) which are
○ National Electronic Repository Limited (NERL) and
○ CDSL Commodity Repository Limited (CCRL)

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AGRICULTURE PART I
● So far, WDRA has notified 123 agricultural commodities and 26 horticultural commodities for
which warehouses can issue e-NWRs
● In 2019, WDRA issued notification that made it mandatory for registered warehouses to
issue negotiable warehouse receipts only in electronic form, that is, an e-NWR
NOTE:
Farmers can avail a loan of up to Rs 50 lakh against physically issued Negotiable warehouse
receipts (issued by non-registered warehouses) whereas In 2021, RBI increased limit to Rs 75
lakhs for loans taken against e-NWRs
Benefits of NWRs
● Help farmers to avail loans from banks against NWRs
● Also a prime tool of trade. This will avoid distress sale of agricultural produce by farmers in
peak marketing season when there is a glut in the market
● Will also be beneficial to other stakeholders, such as banks, financial institutions, insurance
companies, trade, commodity exchanges as well as consumers
Further, NWRs would also result in providing considerable benefits, both at macro as well as
micro levels:
● System allows banks to improve quality of lending services and enhance interest in financing
NWRs
● Also increases the liquidity in the rural areas
● Encourages the scientific warehousing of agricultural commodities
● Lowers the cost of financing by the banks
● Improves the supply chain
● Enhances rewards for grading and quality
● Farmers will have better price risk management
Priority Sector Lending (PSL)

Mandates all Domestic Scheduled Commercial Banks to earmark 18 percent of their Adjusted
Net Bank Credit (ANBC) for lending to Agriculture. 10% of ANBC should be lent to small
and marginal farmers
Income Support for farmers

PM KISAN scheme
● Launch year- February 2019, came into effect from December 2018 as implemented from
back date
● Ministry involved- Ministry of Agriculture and Farmers’ Welfare
● Type of scheme- Central Sector scheme (entire funding from the GOI)
● Aims and objectives
○ To supplement financial needs of Small and Marginal Farmers (SMFs) in
procuring various inputs
○ To protect them from undue reliance on moneylenders for meeting such
expenses and ensure their continuance in the farming activities
● Features of scheme
○ Rs 6,000 is transferred annually directly to bank account of eligible farmers under
Direct Benefit Transfer (DBT) mode in three equal instalments of Rs 2,000 each
○ Definition of family- Husband, Wife and Children
● Eligibility
○ All land holding farmers are covered under scheme. (Irrespective of land holding
size)
○ Does not include tenant farmers, sharecroppers and agricultural labourers

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AGRICULTURE PART I
○State/UT government is responsible for identification of beneficiaries based on above

eligibility criteria
● Scheme Exclusions
○ Beneficiaries of higher economic status are not covered under scheme which include
■ All Institutional land holders
■ Former and present holders of constitutional posts
■ Former and present Ministers/ State Ministers and former/present
Members of Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/
State Legislative Councils, former and present Mayors of Municipal
Corporations, former and present Chairpersons of District Panchayats
■ All serving or retired officers and employees of Central/ State
Government Ministries /Offices/Departments and its field units Central or
State PSEs and Attached offices /Autonomous Institutions under Government
as well as regular employees of the Local Bodies. (Excluding Multi-Tasking Staff
/Class IV/Group D employees)
■ All superannuated/retired pensioners whose monthly pension is
Rs.10,000/-or more (Excluding Multi-Tasking Staff / Class IV/Group D
employees) of the above category
■ All Persons who paid Income Tax in the last assessment year
■ Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and
Architects registered with professional bodies and carried out their profession
by undertaking practices.
Achievements of the scheme

● Till now, over 2.25 lakh crores of funds have been disbursed to more than 11 crore
farmer families, primarily the small and marginal
● Notably, during Covid lockdown, Rs. 1.75 lakh crores were distributed in multiple instalments
to support these needy farmers
● Also benefited over three crore women beneficiaries
Challenges
● Difficulty in Identifying Beneficiary Farmers
○ Majority of states do not have proper land records (like Gujarat, Tamil Nadu,
Jharkhand) and hence, it becomes difficult to identify eligible beneficiaries for states
● Exclusion of Women and tenants
○ Despite 73.2% of rural women engaging in agriculture, only 12.8% are reported to own
land. The rest are non-existent on land records, resulting in millions of
women not being recognised as farmers
○ Scheme does not cover tenant farmers who are most vulnerable
● Poor State-Centre Coordination
○ Since, Agriculture is a state subject scheme demands coordination between
Centre and states
○ Example: West Bengal has not joined the scheme
● Issues related to DBT
○ Lack of last mile banking connectivity in country
○ Possibility of banks offsetting transferred amount to settle outstanding loans
of the beneficiary
Issue of farm loan waivers

● In a farm loan waiver scheme, Centre or state Government repays loan to banks on
behalf of farmers, simply by using public money collected in form of taxes
● Usually happens when farmers are unable to repay their loans due to poor monsoon or natural
calamity or low yield

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AGRICULTURE PART I
● In past two decades, state governments have announced such schemes regularly and it has been
a major promise of political parties in their election manifesto of assembly elections to garner
votes of farmer community
Need for Farm Loan Waivers

● High dependency on Monsoon
○ In India, agriculture is highly dependent on monsoons. Farmers take heavy loans for
crop production. If crop fails due to lack of rains or insufficient market demand,
farmers get trapped in debt and it leads to Farmer suicides. Thus to overcome this
government waives farm loans
● To increase borrowing from institutional sources by the farmers
○ Many farmers borrow money from moneylenders at high-interest rates and get trapped
in a never ending cycle of debt. Farm loan waivers help to divert these farmers to
borrow money from banks instead of money lenders
● To encourage farming as a profession
○ Many farmers are leaving farming due to better money making alternatives. If this
situation continues, there will be serious food scarcity. To prevent this situation, the
government needs to gain the trust of farmers. Thus Farm loan waiver seems the only
option.
Issues related to Farm loan waivers

● Covers only a tiny fraction of farmers
○ Does not cover loans taken from Non-Institutional sources by the farmers
○ Usually excludes agricultural labourers as only landholding farmers are eligible to get
loans from institutional sources
● Inclusion and exclusion errors
○ One household has multiple loans either from different sources or in the names of
different members of the family so, a farmer gets multiple loan waivers
○ Also, sometimes farmer who should get the waiver remains excluded from it
● Long term impact on Banking business
○ Periodic announcement of such waivers deteriorates credit discipline among farmers as
they start to think that they will get a waiver from government after elections hence,
they do not need to repay their loans
○ Also, States typically stagger loan repayments over four to five years. This puts
pressure on bank’s books, forcing them to put a lending squeeze
● Burden on State exchequer
○ Money that could be spent on other developmental projects is diverted to waive off
farmer loans which impact overall developmental activities in the state
○ Also, it increases fiscal deficit of State which in turn is responsible for low credit rating
and makes borrowing expensive for the state
● Sets a wrong precedent
○ Due to frequent loan waivers, rich farmers start taking loans even if they don’t need
them in hope of a future waiver
○ Providing loan waivers in some states encourages farmers from other states to demand
loan waiver even if they don’t need them
What Needs to be Done?

● Enhance agricultural productivity by irrigation and crop diversification
● Diversify agriculture by increased adoption of allied activities i.e. animal husbandry, dairying,
poultry farming, beekeeping, fisheries etc
● Providing Extension services to farmers to increase adoption of latest technologies, equipment,
farming inputs and techniques
● Adoption of sustainable agriculture to maintain the long term yield of the soil

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AGRICULTURE PART I
● Ensure better marketing with focus on exports to increase farmer’s income

● Increase the adoption of crop insurance to deal with crop loss due to natural disasters
Pm Kisan Maan Dhan Yojana

● Government launched Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY) in 2019
● Provide social security to Small and Marginal Farmers in their old age when they have
no means of livelihood and minimal or no savings to take care of their expenses
● A minimum fixed pension of Rs.3,000/- is provided to the small and marginal farmers on
attaining age of 60 years
● It is a voluntary and contributory pension scheme
● Eligible farmer is required to contribute to Pension Fund between Rs.55 to Rs.200 per month
depending on entry age
● Central Government also contributes in equal amount to Pension Fund
● Eligibility:
○ Small and Marginal Farmer (SMF) - a farmer who owns cultivable land up to 2 hectare
as per land records of the concerned State/UT
○ Age of 18- 40 years
● Farmers who are not eligible for the scheme:
○ Small/Marginal farmers who joined PM Shram Yogi Maan Dhan Yojana, National
Pension Scheme, EPFO or any other government run pension scheme
○ Farmers owning more than 2 hectares of land
○ All persons who have paid Income Tax in the last assessment year
Agriculture Insurance
Need of Agriculture Insurance in India
● Nature of Agriculture
○ Economic activity whose productivity is largely determined by weather conditions like
temperature and rainfall
○ Hence, there is a need to protect them from agriculture variability which often results
from uncertain weather conditions
● To break the cycle of debt trap
○ 86% of total farmers in India are small and marginal which means they occupy less than
2 hectares of land
○ Any kind of crop damage or loss pushes these farmers into a cycle of debt trap which
takes years to come out of it
● To prevent from losses due to natural disasters
○ Crop Insurance also provides protection against any losses due to natural disasters like
floods, droughts, cyclones, hailstorms etc
Advantages of crop insurance

● Income stability : It secures farmers against crop failure. It is a recourse that assists farmers in
managing yield and price risks
● Technological advancement: Insurance companies can also provide information on how to
reduce losses, which can help farmers
Pradhan Mantri Fasal Bima Yojana (PMFBY)

● Launched in 2016 Kharif season to provide comprehensive insurance coverage to farmers in
case of crop failure, helping stabilise their incomes
● Replaced three older schemes
○ National Agricultural Insurance Scheme (NAIS)
○ Modified National Agricultural Insurance Scheme (MNAIS) and
○ Weather-based Crop Insurance Scheme
● Centrally sponsored scheme- North Eastern States- 90:10; Other States- 50:50

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AGRICULTURE PART I
● Implemented through empanelled general insurance companies

● Crops covered under the scheme- all Food & Oilseeds crops and Annual
Commercial/Horticultural Crops for which past yield data is available
● Also covers post-harvest losses that take place within 15 days of harvesting
● Amount of Premium paid by the farmers
○ Under the scheme, farmers pay 1.5 percent and 2 percent of total Sum Insured (SI)
for rabi and kharif seasons respectively, with Centre and State Governments bearing
most of premium cost
○ Farmers pay 5% of total sum insured for horticulture and commercial crops
● Payment of claims to the farmers
○ Scheme is implemented on an ‘Area Approach’ basis. Admissible claims are paid directly
to insured farmer’s account by insurance companies
○ However, losses due to localised risks of hailstorms, landslides, inundation, etc., are
calculated on an individual-insured farm basis
● Scheme was revamped in 2020 with following changes
○ Participation of farmers was made voluntary (earlier, it was mandatory)
○ Insurance companies can be selected by states for 3 years in a go
○ Use of smart sampling technique through satellite data for crop cutting experiments
● Grievance redressal within the scheme
○ National Crop Insurance Portal launched in 2022 to handle all grievances from end to
end
○ Officials of state governments and central government monitor redressal of complaints
through portal
○ Grievance redress mechanism has been implemented on district and state levels to
resolve complaints
Achievements of the scheme

● PMFBY is currently largest crop insurance scheme in world in terms of farmer
enrolments, averaging 5.5 crore applications every year and third largest in terms of
premiums received
● Increase in acceptability of scheme
○ It can be ascertained from fact that share of non-loanee, marginalised and small farmers
increased by 282 per cent since the scheme's inception in 2016
○ In last six years of its implementation, farmers have paid a premium of ₹25,186 crore
and received claims amounting to ₹1.26 lakh crore (as of 31st October 2022)
Challenges in the implementation of scheme

In August 2021, a report was submitted by a committee chaired by Dr P.C. Gaddigoudar on
performance of PMFBY. Key challenges identified by committee include:
● Participation of states
○ Financial constraints and low claim ratios during normal seasons may lead state
governments to withdraw from it. Several states, such as Bihar and West Bengal, have
withdrawn from scheme, while Punjab never implemented it
● Coverage
○ Farmers who have taken loans may opt-out of the scheme by submitting declaration
forms. However, due to lack of awareness, several farmers do not submit requisite
form and face a mandatory deduction of premium from their bank accounts
● Delays in the settlement
○ Delays in settlement of insurance claims are one of the biggest challenges in
implementation of scheme. Delays may be due to factors such as late release of yield
data and premium subsidy by states; yield-related disputes between insurance
companies and states; and non-receipt of account details of farmers
● Insurance companies

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AGRICULTURE PART I
○ Insurance companies are required to have a functioning office in each tehsil. These
offices are crucial for farmers to mitigate problems faced in availing scheme benefits and
suggested uploading contact details of their officials on the insurance portal. However,
they are non-existent in several districts
● Penalties for companies
○ Delays in taking action against defaulting insurance companies due to procedural
complications have been observed
● Grievance redressal
○ Only 15 states and union territories have notified Grievance Redressal Committees at
both state and district levels, as mandated under scheme. Also, Department of
Agriculture and Farmers’ Welfare does not have data on grievances received and
resolved and recommended recording such data
● Technological interventions
○ The yield-related disputes and delayed transmission of yield data are major reasons for
delays in settlement of claims. This data is provided by state governments based on
crop cutting experiments which are highly time-consuming and labour-intensive. To
address this, it recommended adoption of smart sampling techniques by all states using
technological interventions such as satellite data or the use of drones
Agriculture Subsidies
● Agricultural subsidy is a government incentive paid to agribusinesses, agricultural organisations
and farms to supplement their income, manage the supply of agricultural commodities, and
influence cost and supply of such commodities
Need of Agriculture subsidies

● To promote agriculture development and production to attain self-sufficiency
● Makes inputs affordable to farmers who cannot buy them, due to poverty, lack of access to
credit, and inability to insure against crop losses.
● Helps in promoting better cropping patterns, employment and income of beneficiaries
● Compensates for high cost of transport which increases input costs as well as market price of
agricultural commodities
Types of Agriculture subsidies

On the basis of input and Output
Seed subsidy: Government provides HYV seeds to farmers on a subsidised rate
Fertiliser subsidy
● Provided directly to fertiliser companies to sell fertilisers at fixed price to farmers
● Difference between actual cost incurred in production/imports to fertiliser companies and
Maximum Retail Price (MRP) at which it is sold to farmers is paid by government to fertiliser
companies in form of subsidies
● It ensures
○ Availability of fertilisers at cheap rates to the farmers
○ Stability in fertiliser prices
○ Reasonable returns to manufacturers
Irrigation subsidy
● Government provides irrigation services at lower cost than market rate. Its difference
between state's operation and maintenance costs for irrigation infrastructure and irrigation fees
paid by farmers
● It could be accomplished by government constructing public goods such as canals, dams, tube
wells, and other such infrastructure and charging farmers little or no fees for their usage (in
some situations)

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AGRICULTURE PART I
Power Subsidy
● Farmers need power for irrigation purposes. Government started providing free
electricity or at cheap rates to shift farmers from diesel to electric
● But, this free electricity causes water wastage as farmers do not think about conserving water
when they do not have to pay any costs. It is also causing the problem of groundwater depletion
in many areas
● Also, cost of this free electricity is covered by cross-subsidisation burden on industrial and
commercial establishments
● Centre wants states to apply Direct Benefit Transfer (DBT) for farm sector to supply free
electricity to farmers which will reduce misuse of free electricity
Subsidy on Agriculture Equipment

● Provided to farmers through State Governments under various schemes such as Sub-Mission on
Agricultural Mechanization (SMAM), Rashtriya Krishi Vikas Yojana (RKVY) for purchase of
various agricultural equipment and machines
Credit Subsidy
● Difference between actual interest of borrowing charged by banks and the interest at which
farmers get loans. Government reimburses this difference through schemes like Interest
subvention scheme
● Farmers do not have sufficient cash to purchase agricultural inputs and cannot approach credit
market because they do not have collateral needed for loans. Government have taken following
measures
○ More banking operations in rural areas to advance agricultural loans;
○ Keeping interest on loans low through subsidies;
○ Relaxing terms of credit such as need of collateral for farmers (through Kisan credit
cards)
Agriculture Infrastructure subsidy

● Agriculture Infrastructure like storage facilities, transportation facilities, marketing facilities etc.
is needed for faster and cheaper delivery of inputs to farmers as well as selling of agricultural
products at best price
● Since 86% of farmers in country are small and marginal, they can not invest money in agri-
infrastructure activities on their own. Hence, it becomes responsibility of government to
establish a sound infrastructure
● Government runs various schemes like Agriculture Infrastructure fund, e-NAM etc and provides
subsidies to SHGs/Cooperatives and other organisations to build the necessary infrastructure
Export subsidy
● Given to the farmers to face international competition. When a farmer or exporter sells
agricultural products in foreign market, he earns money for himself, as well as foreign exchange
for country. Subsidies provided to encourage exports are referred to as export subsidies
On the basis of mode of payment

Direct Subsidies
● Money transfers by government that reach ultimate beneficiary through a formal predetermined
route
● In agriculture and allied sectors, subsidies are given for crop husbandry, agricultural implements,
minor irrigation, soil conservation, horticulture, animal husbandry, pisciculture, sericulture and
also for loss in agriculture during natural calamities like droughts or floods
● Example: Direct Benefit Transfers (DBT), PM-KISAN etc

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AGRICULTURE PART I
Advantages of direct subsidies

● Direct subsidies provide purchasing capacity to farmer and have multiplier effect in terms of
farmers investing in agriculture and raising their standard of living
● They increase efficiency, as well as promote regional balance, and crop diversification
● Direct subsidies induce behavioural changes, as farmers will stop using excessive water or
fertilisers in their fields
● These schemes impart a sense of autonomy to beneficiaries
○ People can decide for themselves which crop they would want to grow, according to
profits and their local requirements
○ They can also use amount in value addition, mixed farming and other beneficial
activities for their farms/lands
Disadvantages of direct subsidies

● There is a good chance that cash may get used in some non-priority activities or for some
nonproductive works e.g. on marriage of girls, alcohol, etc. rather than being used for the right
purposes
● There are more chances of increasing price volatility with direct subsidies
● Issues with identification of beneficiaries
Indirect Subsidies
● Indirect subsidies are provided through price reduction, welfare and other ways but do not
include direct cash payment
● They reach farmers alongside use of inputs. Therefore, are highly correlated with amount of use
of inputs by farmers. Generally, farmers who use more inputs would naturally enjoy higher
subsidies
● Farmers get subsidised product while subsidy amount is provided to provider of product
● Example: fertiliser subsidy, power subsidy, water subsidy etc
Advantages of Indirect subsidies

● Indirect subsidies are better tools at Government’s disposal to fulfil some targets fixed by it or
to guide people to move towards required goals as these subsidies are linked to consumption of
goods and services
● There is no wastage of money unlike case with direct subsidies where cash is provided directly
to farmers and he may waste it on non-productive activities like alcoholism
● Helps prevent inclusion-exclusion error
Disadvantages of Indirect subsidies

● Takes away incentives from other areas, such as Indian agriculture has become cereal centric,
regionally biassed, and input intensive Indirect subsidies are one of the main reasons towards
such a state
● Farmers do not feel incentive to save resources such as over exploitation of ground water,
indiscriminate use of fertilisers, etc. are resulting due to it
● It is liable for misuse for gaining political advantages especially during the time of elections
Other types of subsidies
Input Subsidies
● Disbursed by providing agricultural inputs to farmers at lower price than original cost of input
● Example: fertiliser subsidy, seed subsidy etc
Output Subsidies
● Provided in order to encourage output of particular product by partially offsetting production
cost or losses. Hence, final price of product remains same for end-consumer
Implicit Subsidies
● These are hidden in nature. Prices for inputs utilised are set administratively and priced lower

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AGRICULTURE PART I
than their economical cost in "implicit input subsidies. Here, farmer does not receive any
direct payment but somebody in economy accounts for the difference
Explicit subsidies
● Payments offered to farmers to meet a portion of cost of an input and are known as
explicit input subsidies. Example: subsidies on improved or high yielding variety seeds
Issues related to Agriculture subsidies

● Heavy Fiscal Burden
○ Amount spent by government on subsidies is huge and it also increases fiscal deficit
○ Example: Government of India is expected to spend Rs 1.75 lakh crore on fertiliser
subsidies in 2023-24
● Excessive use of natural resources
○ Misuse of subsidies has led to excessive use of natural resources. For instance,
■ Power subsidy has led to overuse of groundwater which has further resulted
in dramatic fall in ground water levels
■ Electricity consumption in Indian agriculture is far greater than in any
comparable large country
● Environmental Effects and decline in Soil Fertility
○ There is an imbalance in fertiliser use in terms of NPK
■ The ratio of their use is (6.7): (2.4): 1 as against their desirable ratio of 4:2:1
■ The situation is more grim in agriculturally important states like Punjab and
Haryana where the NPK use ratio is as high as (31.4): 8:1 and (27.7): (6.1): 1
respectively
○ This harms soil fertility, biodiversity, and also leads to eutrophication and
bioaccumulation
● Benefits don’t reach the targeted groups
○ Fertiliser subsidies are generally cornered by manufacturers and rich farmers of Punjab,
Haryana and Western UP
● Crop bias, Regional Bias, and Input Intensive
○ Price subsidies have affected Indian agriculture negatively.
■ This has made Indian agriculture cereal centric, and neglectful towards pulses,
oil seeds and coarse cereals
■ This has led to import of these crops and food insecurity in lower strata which
depend upon coarse cereals
○ Also, most subsidies go to rich farmers, and rich states which are able to grow
marketable surplus and have well-developed infrastructure
● Indiscriminate use of Price Subsidies
○ Although price subsidies are better targeted, they tend to create inefficiencies since
they can lead to fraud, diversion, and waste
Way forward
● Better targeting of subsidies through JAM (JanDhan –AADHAAR- Mobile Number) trinity
can reduce fiscal burden
● Separate feeder line network should be operationalised to keep a check on electricity
subsidy to farmers to reduce groundwater decline
○ This process has shown positive results in arresting decline of ground water levels in
Gujarat and can help in curbing misuse of subsidies
● There is a need to create awareness among farmers, increasing penetration of soil health card
schemes, promoting organic farming and innovative products like neem-coated urea, nano-urea
to reduce burden of fertiliser subsidy on government

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AGRICULTURE PART I
● Crop diversification by including more crops under MSP, Mission on Integrated Development of
Horticulture, promotion of organic and cooperative farming, food processing, and mixed
farming can help in preventing farmers from shifting towards selective crops
● Alternatives to price interventions that have similar advantages of targeting beneficiaries
must be explored and tried. Example: Price deficiency payments under PM-Aasha can be a
good alternative
Agriculture subsidies and World Trade Organisation (WTO)

Agreement on Agriculture (AoA)
● Signed by WTO members during Uruguay Round, 1995 to address government policies
that distort markets and restrict trade
● Initiated reductions in subsidies and trade barriers to make markets fairer and more competitive
● The agreement covers
○ Market access- use of trade restrictions such as tariffs on imports
■ All member countries to open their domestic market by reducing tariffs on
imports
○ Domestic support- Subsidies provided by government to farmers to increase
production but also distort trade
○ Export competition- Use of export subsidies and other government support
programmes that subsidise exports
● Agreement provides for three type of subsidies under domestic support
○ Green Box- Includes subsidies that do not distort trade or cause minimal damage
to trade balance
■ Example- payment for lack of access to research, lack of training, lack of rural
infrastructure, cattle vaccination etc
■ There is no limit on these subsidies
○ Blue Box- Aim to limit production and do not increase with production. These
subsidies are less distorting in nature
■ There is no limit on these subsidies
○ Amber Box- These subsidies are trade distorting in nature and hence are subject to
limits. Example- subsidies on fertiliser, power, irrigation etc
■ For developed countries, subsidy limit is 5% of agricultural production
■ For developing countries, subsidy limit is 10% of agricultural production
● Peace clause-
○ Under AoA, subsidies over and above prescribed ceiling are considered trade-
distorting. The limit is fixed at 10% of food production value for developing
countries like India
■ 10% is calculated on basis of value of agriculture production in 1986
○ Peace clause gives temporary immunity to developing countries like India to continue
their respective food subsidy programs and protects them from being challenged under
other WTO agreements
○ Peace Clause expired on January 1, 2004. Another temporary peace clause was
made at WTO Bali conference in December 2013 for four years until 2017
■ According to Bali Package, public stockholding programmes for food
security in developing countries would not be challenged legally even if a
country’s agreed limits for trade-distorting domestic support were breached
■ After 2017, peace clause have been continued without any sunset
clause i.e. for an indefinite time
Nairobi Package 2015

● Special Safeguard Mechanism (SSM) for developing countries
○ Allows developing country members to temporarily raise their tariffs on agricultural
products in case of import surges or price falls

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AGRICULTURE PART I
● Public Stockholding for food security purposes

○ Members shall engage constructively to negotiate and make concerted efforts to agree
and adopt permanent solution on issue of public stockholding for food security
purposes
● Export Competition
○ Developing country members shall eliminate their export subsidy entitlements by end
of 2018 and developed countries shall do it immediately
India’s position vis-a-vis these rules

● Government of India push for its agriculture subsidies due to primarily two reasons:
○ India has large population of poor farmers who require government support in
form of subsidies and procurement at Minimum Support Price (MSP)
○ India has large population of malnourished poor families who need subsidised
food grains under the National Food Security Act (NFSA)
● India needs to maintain buffer stock to provide foodgrains to its population at subsidised
rates which is known as ‘Public stockholding of foodgrains’
● Public stockholding by Indian government has been a bone of contention between India
and developed countries
● Developing countries like US, Australia, Canada alleges that India exports this buffer stock
of foodgrains to these countries and provides export subsidies
● As a result in 2020 and 2021, India had to invoke a peace clause which prevents WTO
members from initiating complaints against developing country for compliance with certain
obligations - because India exceeded “ceiling on support it can offer farmers for rice”
○ This was first time any country has taken recourse to this safeguard and this has
fueled further debates in WTO surrounding India’s farm subsidy policies
● However, India has maintained its stand that it has always complied with WTO
rules and it needs to continue these subsidies to ensure food security and livelihoods of
the farmers
● India also demands that limit of permissible subsidies which is 10% of
agricultural production in 1986 should be changed to a recent year as countries
like India have witnessed a high increase in their agricultural production since
1986
Agriculture Pricing Policies

● Plays an important role in achieving growth and equity in Indian economy in general and to
agricultural sector in particular
● Major underlying objective of government's price policy is to protect both the producers and
consumers
Need for Agriculture Pricing Policy

● Agricultural prices fluctuate more rapidly than industrial products which bring harm to both
producers and consumers
● During inflation, low income group of consumers are much affected because most goods
become out of accessible reach of consumers due to high prices
● High prices for prolonged time period may elevate level of hunger and malnutrition among low-
income populations affecting their overall productivity and hence Indian economy
Minimum Support Price

● It is an agricultural produce price, set by the Government of India to purchase directly from
farmers. This is not enforceable by the law
● Gives guarantee to farmers that their crops will be purchased by Government at predetermined
price in case market prices fall

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AGRICULTURE PART I
● Major objectives of MSP are to support farmers from distress sales and to procure food grains
for public distribution
○ In case market price for commodity falls below announced minimum price due to
bumper production and oversupply in market, government purchases entire quantity
offered by farmer at announced minimum price
● Announced by Government of India on recommendation of Commission for Agricultural
Costs and Prices (CACP) every year before the sowing begins
Commission for Agricultural Costs and Prices (CACP)
● It is an attached office of the Ministry of Agriculture and Farmers Welfare,
Government of India. It came into existence in January 1965.
● It is mandated to recommend minimum support prices (MSPs) to incentivize cultivators to
adopt modern technology, and raise productivity and overall grain production in line with
emerging demand patterns in the country.
● Presently, MSP is offered on 23 agricultural commodities:
○ Cereals- paddy, wheat, maize, sorghum, pearl millet, barley, and ragi
○ Pulses- gram, tur, moong, urad, and lentil
○ Oilseeds- groundnut, rapeseed-mustard, soyabean, sesame, sunflower, safflower, niger
seed
○ Commercial crops- copra, sugarcane, cotton, and raw jute
● Factors taken into consideration while fixing MSP include
○ Cost of Production
○ Demand and Supply
○ Price trends in the market (both domestic and international)
○ Terms of trade between agriculture and non-agriculture
○ Inter-crop price parity
○ Likely implications of MSP on consumers of that product
○ A minimum of 50 percent as margin over cost of production
● In Budget 2018-19, Government of India announced to keep MSPs at 1.5 times cost of
production
Few terms associated with MSP
Procurement Prices
● These prices are higher than MSP and are meant essentially for purchase of quantities needed by
Government to maintain its Public distribution system and for building up the Buffer Stock
Issue Prices
● Indicate prices at which Government supplies food grains through Fair Price shops and ration depots
Benefits of MSP system

● Food security- Now, India is not only self-reliant but a food grain surplus country
● Controls price volatility- Helps government to intervene in case of sharp price rise of food
grains through its buffer stock
● Motivates farmers to invest more in agriculture production and adopt improved
technology by assuring them of a fixed price for their produce
Issues with MSP

● Contributes to Inflationary trend
○ Government keeps increasing MSPs keeping in mind interest of farmers and populist
measures. This leads to inflation and high prices for consumers
● Distortion in cropping pattern
○ MSP of wheat and rice has generally been higher than cost of production and that of
cereals and pulses has been less than cost of production. So farmers get incentivized for
growing profitable crops and hence cropping patterns get distorted

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AGRICULTURE PART I
● Deterrent to crop diversification

○ Price support policy is mainly skewed towards production of rice and wheat because
government maintains buffer stock of these two crops to provide them to targeted
beneficiaries under National Food Security Act (NFSA)
○ As a result, we are yet to become self-sufficient in oilseeds and pulses cultivation and
India has to spend over Rs 60,000 crores every year on imports of oilseeds
● Bias in favour of surplus states
○ Almost 95% procurement of wheat is from Punjab, Haryana and Western UP ,while
90% of rice is procured from Punjab, Andhra Pradesh, Haryana, UP and Tamil Nadu.
Other states do not get much benefit from it
● Bias in favour of rich farmers
○ Estimated that in each state, average income transfer to large farmers is approximately
ten or more times greater than those received by marginal farmers
● Adverse Impact on investment
○ Due to extra expenditure in food procurement, other sectors lose out on new
investments. It has been observed that 10% increase in MSP of wheat and rice leads to
decline in investment by 1.9% and in overall GDP by 0.33%
● Faulty criterion being used for calculating MSP
○ Critics argue that method to calculate cost of production on which MSP is based is not
accurate and needs improvement
● Ecological impact of monoculture
○ High food grain growing areas of country like Punjab, Haryana and western Uttar
Pradesh practice monoculture which results in soil degradation and leads to higher
usage of chemical fertilisers
Challenges to farmers for selling their produce at MSP

● Delay in public procurement
○ Small holding farmers can not afford to wait for government to start procurement.
Most of them sell their produce soon after harvesting because
■ They have no storage facility
■ They have loans to repay and many expenses to meet
● Delayed payment and cumbersome bureaucratic procedures
○ Government takes weeks after procurement
● Government do not procurement from each mandi
○ There is an uncertainty whether crops would be procured from mandi nearest to
farmer (transportation costs add up if farmers have to go to far-off mandis to sell their
produce
Way Forward
● Scientist MS Swaminathan had suggested C2 formula for computing MSP
● C2 formula computed a lot of costs, including imputed rent on his own land, imputed interest
on his own capital, etc. Using C2 formula would increase the MSP amount
● Procurement under MSP should be at market driven prices so that it does not distort
market prices and cause inflation
● Since MSP is announced just before sowing season, many farmers, especially small and medium
farmers miss out on the notification. MSP system can only be effective if producers are
aware of MSP well in advance
● Robust network of procurement agencies should be available for farmers to sell their produce.
The government should strengthen decentralised procurement
● Government should procure other food grains like coarse cereals, pulses as well to
increase their production as well as consumption
PM-AASHA (Annadata Aay sanrakshan Abhiyaan)

58
AGRICULTURE PART I
Government has launched 3 sub-schemes under PM-AASHA scheme

● Price Support Scheme
○ For physical procurement of pulses, oilseeds and Copra by central agencies with a
proactive role of state government
● Price Deficiency Payment Scheme (PDPS)
○ Covers all oilseeds for which MSP is notified
○ Does not involve any physical procurement of crops, rather it involves direct payment
of difference between MSP and selling price to farmers
○ Benefits of PDPS
■ Reduces need for government to procure food crops, transport and store
them and then dispose of them under Public Distribution System (PDS)
■ Reduces government’s expenditure on transportation and storage of
foodgrains and also wastage costs
● Pilot of private procurement and stockist scheme (PPPS)
○ Under this, selected private agencies procure commodities at MSP in notified markets
Fair and Remunerative Price (FRP)

● FRP is the price declared by government, which mills are legally bound to pay to farmers for
sugarcane procured from them
○ In short, FRP is minimum price at which sugarcane is to be purchased by
sugar mills from farmers
○ Also, States may determine their own State Advised Price (SAP) which is generally
higher than FRP. (usually announced by key sugarcane producing states)
● FRP is based on Rangarajan Committee report on reorganising sugarcane industry
● Mills have option of signing an agreement with farmers, which would allow them to pay FRP in
instalments
○ Delays in payment can attract an interest up to 15% per annum, and sugar
commissioner can recover unpaid FRP as dues in revenue recovery by attaching
properties of the mills
● Payment of FRP across country is governed by Sugarcane Control order, 1966 issued
under Essential Commodities Act (ECA), 1955 which mandates payment within 14 days
of date of delivery of cane
● FRP is determined on recommendation of Commission for Agricultural Costs and
Prices (CACP) and announced by Cabinet Committee on Economic Affairs (CCEA)
● Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane based on
following factors:
○ Cost of production of sugarcane
○ Returns to the growers from alternative crops and general trend of prices of
agriculture commodities
○ Availability of sugar to consumers at a fair price
○ Price at which sugar produced from sugarcane is sold by sugar producers
○ Recovery of sugar from sugarcane
○ Realisation made from sale of by-products viz. Molasses, bagasse or press mud or their
imputed value
○ Reasonable margins for the growers of sugarcane on account of risk and profits
NOTE:- Prior to 2009-10, the Central Government was fixing the Statutory Minimum
Price (SMP) of sugarcane and farmers were entitled to share profits of a sugar mill on a 50:50
basis. As this sharing of profits remained virtually unimplemented, Sugarcane (Control) Order, 1966
was amended in October, 2009 and concept of SMP was replaced by Fair and Remunerative
Price (FRP) of sugarcane

59
AGRICULTURE PART I
How is FRP paid?

● FRP is based on recovery of sugar from cane. Sugar recovery is ratio between sugar produced
versus cane crushed, expressed as a percentage
● Higher the recovery, higher is the FRP, and higher is the sugar produced
NOTE: FRP of sugarcane for sugar season 2022-23 was fixed at Rs 305/quintal which was
an increase of Rs 15/quintal from previous year
Few facts regarding Sugar sector

● Sugar industry is country’s second largest agro-based industry, next to cotton. It
impacts livelihood of over 5 crore farmers and their dependents
● India is largest consumer and also became largest producer of sugar in the world in
2021-22
● In Sugar season 2021-22 (Oct-Sep), a record of more than 500 Million Metric Tonnes
(MMT) sugarcane produced in country out of which 357.4 MMT was crushed by sugar
mills to produce sugar (Produced about 394 Lakh MT of sugar)
● 35 LMT of sugar was also diverted for ethanol production (Under Ethanol Blending
Programme) and 359 LMT of sugar was produced by sugar mills for human consumption
● India was also second-largest exporter of sugar in world after Brazil
● Over the years, India has become a sugar surplus nation. This has been possible because of
various measures undertaken by Government
○ Example: Fair and Remunerative Price (FRP) has doubled in a span of ten
years. Some state governments also announce State Advised Price (SAP) at levels
higher than FRP
MSP of Sugar
● In 2018, government had introduced concept of MSP of sugar so that industry could get at least
minimum cost of sweetener so as to enable them to clear cane price dues of farmers
● Indian Sugar Mills Association (ISMA) has been demanding from government to increase MSP of
sugar from current level of Rs 31 per kg to at least Rs 36-37 per kg. In line with FRP of cane
whose price has been increased from Rs 275/quintal to Rs 305/quintal
○ MSP of sugar was last announced in 2019
● Significance of MSP of Sugar: 85% of sugar mills’ revenue comes from sales of sugar,
hence it is an important component to pay cane prices to farmers
Challenges with FRP

● Arrears
○ High amount of FRP arrears to be paid by Sugar mill owners every year
● Dual Pricing
○ Apart from Centre’s FRP, state Governments have also right to declare their
own price which is called State Advisory Price (SAP). Generally, SAP is more
than FRP which poses conflict. Millers say that dual pricing is distorting sugar economy
and leading to cane price arrears
● WTO ruling
○ Recent World Trade Organisation (WTO) ruling on December 14, 2021, has
put a question mark on continuation of Fair and Remunerative Price (FRP) for
sugarcane
○ WTO has opined that Centre’s FRP, as well as higher SAPs, are in violation of
permitted limits of domestic support under Organisation’s Agreement on
Agriculture

60
AGRICULTURE PART I
Government Initiatives
● Extended working capital loans with interest subvention to sugar mills under Scheme for
Extending Financial Assistance to Sugar Undertakings (SEFASU-2014)
● Provided financial assistance through ‘raw sugar export incentive scheme’
● Extended financial assistance of Rs. 4213 crore to mills through banks under Soft loan
scheme, which was directly credited to farmers’ accounts on behalf of sugar mills. An amount
of Rs. 425 Cr was released to SBI for subvention of interest on above loan. About 32 lakh
farmers have benefited
● Ethanol Blended Petrol (EBP) programme injects liquidity into sugarcane sector by
providing sustained demand for ethanol
Recommendations of Rangarajan Committee related to sugar sector regulations

● To abolish quantitative limitations on sugar export and import and replace them with
appropriate tariffs
● There should be no more outright bans on sugar exports, according to committee
● Central government has mandated minimum radial distance of 15 kilometres between any two
sugar mills; this condition frequently results in virtual monopoly over a vast area, giving mills
disproportionate control over farmers. Committee suggested that distance standard be re-
examined.
● Selling of by-products should be unrestricted, and prices should be established by the market.
States should also alter their policies to allow mills to use bagasse-generated energy
● States which want to provide sugar under PDS may henceforth procure it from market directly
according to their requirements and may also fix the issue price
A Comparison between FRP and MSP

FRP MSP
FRP is minimum price at which sugarcane is to MSP is a “minimum price” for any crop that
be purchased by sugar mills from farmers government considers as remunerative for
farmers.
It is price that government agencies pay when
they procure a particular crop
Announced by Cabinet Committee on Announced by Cabinet Committee on
Economic Affairs on the recommendation of Economic Affairs on recommendation of
CACP CACP
Announced for Sugarcane only Announced for 23 crops
It is backed by Sugar (Control) Order, There is no statutory backing and hence,
1966 issued under Essential Commodities Act, government is not legally bound to procure
1955 each of 23 crops from every farmer
Price Stabilisation Fund (PSF)

Objectives
● Promotion of direct purchase from farmers /farmers’ associations at farm gate/Mandi
● Maintaining strategic buffer stock that would discourage hoarding and unscrupulous speculation
● Protecting consumers by supplying such commodities at reasonable prices through calibrated
release of stock
Features
● Separate saving bank account in which amount made available by Centre would be kept.
This account is opened and managed by Small Farmers Agri-Business Consortium (SFAC)
● For providing interest free advance towards working capital to eligible proposals from State
Governments/Union Territories (UTs) and Central Agencies
○ Money to State/UT will be transferred only into revolving account set up by beneficiary
state/ UT

61
AGRICULTURE PART I
○ In this revolving fund Centre and State will contribute equally (50:50) and for North
Eastern States contribution would be 75:25
● It will be managed by Price Stabilization Fund Management Committee

62
AGRICULTURE PART - II
Agriculture Marketing & Exports, Public Distribution

System & Technology in Agriculture Sector
Agricultural Marketing
Meaning of Agricultural Marketing
● According to National Commission on Agriculture, agricultural marketing is process
that begins with a decision to produce saleable farm commodity and includes
all aspects of market structure of system, both functional and institutional, based on
technical and economic considerations, and includes pre and post-harvest
operations, assembling, grading, storage, transportation, and distribution
● Indian Council of Agricultural Research encompasses three key tasks in
agricultural marketing: assembling (concentration), processing (processing),
and distribution
Significance of Agricultural Marketing

● Aimed at providing remunerative prices to farmers
● Ensures supply of food of required quality at reasonable prices to consumers
● Efficient marketing system minimises costs and maximises benefits to all sections of
society
Features of Agricultural Marketing

● Output is bulky in nature: Agricultural produce is bulky for its value in comparison
with many manufactured goods. The demand it makes on storage and transport
facilities is heavy and specialized, resulting in heavy costs
● Output is seasonal: The farm output is seasonal in character, whereas its demand by
consumers is spread over the whole year. The market system has, therefore, to balance
suitably seasonal outflow of produce from farm with relatively steady and continuous
consumer demand
● Perishability of the product: Agricultural commodities are perishable in nature and
suffer loss and deterioration in quality during storage and transportation. Thus, they
require special type of storage and transport facilities
● Some production is localised: Production of certain crops like fruits and plantation
crops is highly localised but consumption is widespread, their marketing becomes more
difficult
● Presence of intermediaries or middlemen: In India most farmers are small and
medium scale producers with weak financial position. They are unable to undertake
above functions individually, whereas these functions are usually in hands of
intermediaries or middlemen, who exploit them
Systems of Agricultural Marketing

● Sale in Villages: Farmers to sell away their surplus produce to the village
moneylenders and traders at a very low price. Moneylender and traders may buy
independently or work as an agent of a bigger merchant of nearby mandis. Consumers
can also directly purchase from farmers especially vegetables and food grains for their
consumption
● Periodic Rural Markets: Second method of disposing surplus of Indian farmers is to
sell their produce in periodic markets, held weekly, bi weekly or daily in different
villages. They are popularly known as Haat
1
● Sale in Mandis: This is the third form of agricultural marketing in India. Here, selling
of surplus produce takes place though mandis located in various small and large towns.
These mandis are located in a distant place, thus farmers will have to carry their
produce to mandi and sell those produce to wholesalers with help of brokers or ‘dalals’
● Co-operative Marketing: Cooperative marketing organisations are association of
producers for collective marketing of their produce. Here, marketing societies are
formed by farmers to sell output collectively to take advantage of collective bargaining
for obtaining a better price
● Regulated Market: Farmer is able to sell his marketed surplus in presence of several
buyers through open and competitive bidding. The legislation for establishment of
regulated markets does not make it compulsory for farmers to sell his produce in a
regulated market yard. Instead, voluntary action on part of farmers to take advantage of
such a market is assumed
Challenges in agricultural marketing system in India

● Segmented Market: Agriculture market in India is highly segmented, with many
intermediaries between farmers and consumers; Results in lack of price transparency
and unequal bargaining power for farmers
○ Causes of market segmentation are many:
■ Differences in remoteness and connectivity (rural roads)
■ Local market power of intermediaries, degree of private sector
competition
■ Propensity of regional exposure to shocks, local storage capacity
■ Mandi infrastructure and farmers access to them
■ Storage life of the crop and crop specific processing cost
○ Market segmentation results in large differences in producer and
consumer prices. Although these differences are location specific, they
result in higher costs for both farmers and consumers alike
○ Segmentation also creates a “wedge” at various points in supply chain
from farm-gate to final consumer in India
● Inefficient infrastructure: Lack of efficient transportation and storage infrastructure
results in significant post-harvest losses and higher costs of transportation
○ Warehousing facilities for storage of agricultural produce is inadequate
○ Poor transportation facilities like unusable roads and lack of connectivity
makes it difficult to take agriculture produce to the markets
○ In absence of proper agricultural markets, most farmers are forced to sell their
output to local moneylenders at a much cheaper price
● Inadequate market information: Farmers often lack access to market
information, making it difficult for them to make informed decisions on what
to produce and where to sell their products
○ In absence of market intelligence, farmers are unable to assess correct
price of their produce based on demand-supply equations
● Poor quality control: Quality of agricultural products is often not up to desired
standards, resulting in lower prices and rejection by buyers
● Lack of market linkages: Small and marginal farmers often lack access to formal
markets and face difficulties in finding buyers for their products
● The Contract farming has been taken out of APMC domain, citing conflict of
interest. Traders and commission agents oppose it due to their business

2
getting adversely affected; contracted produce does not have to come to APMC
mandi or pass through mandi agents
● APMC challenges: APMC mandis face their own set of challenges like poor
storage facilities, intermediaries charge their own commissions from farmers, and
corruption
● Lack of Grading and Standardization: Different varieties of agricultural produce
are not graded properly. The practice usually prevalent is “dara” sales wherein heap of
all qualities of produce are sold in one common lot Thus farmer producing better
qualities is not assured of better price. Hence there is no incentive to use better seeds
and produce better varieties
● Unfavourable Mandis: Condition of mandis are not at all favourable to the farmers.
In the mandis, the farmers have to wait for disposing of their produce for which there
is no storage facilities.
○ Thus, the farmers will have to make help of the middleman who takes away a
major share of the profit, and finalises the deal either in his favour or in favour
of wholesalers
● Distress Sale: Most Indian farmers are very poor and thus have no capacity to wait
for better price of his produce in absence of proper credit facilities
○ Farmers often have to go for even distress sale of their output to village
moneylenders-cum-traders at very poor price
● Unregulated Markets: Huge number of unregulated markets which adopt various
malpractices
○ Prevalence of false weights and measures and lack of grading and
standardization of products in village markets in India are always going against
interest of ignorant, small and poor farmers
Laws and Schemes Regulating Agriculture Marketing In India

Model APMC Act, 2003
Agricultural Produce Market Committee (APMC)
Statutory market committee established by state government to regulate trade in
certain recognized agricultural, horticultural, and livestock products, as defined by state
government's Agricultural Produce Market Committee Act. It is responsible for:
● Ensures transparency in pricing system and transactions taking place in market area
● Provides market-led extension services to farmers
● Ensures payment for agricultural produce sold by farmers on the same day
● Promotes agricultural processing including activities for value addition in agricultural
produce
● Publicizing data on arrivals and rates of agricultural produce brought into market area
for sale
● Setup and promote public private partnership in management of agricultural market
Model APMC Act, 2003

Ministry of Agriculture drafted model law on agricultural marketing, State Agricultural
Produce Marketing (Development and Regulation) Act, 2003

3
Key Provisions of the Act

● Market Zones: According to the Act, state is divided into many market zones, each of
which is governed by its own Agricultural Produce Market Committee
(APMC), which has its own set of marketing regulations (including fees)
○ APMC Acts mandated that sale/purchase of agricultural commodities
is carried out in a specified market area, and producer-sellers or traders
pay requisite market fee, user charges, levies and commissions for commission
agents (arhatias)
● Allowing farmers and private persons to set up their own markets: Private
sector and cooperatives can be licensed to set up markets
○ Aside from that, legal individuals, growers, and local governments are all
allowed to apply for new agricultural produce markets in any area
● Special market for perishables: Notification of 'Special Markets' in any market
region for designated agricultural commodities like perishables is handled separately
● Contract Farming: Contract farming is allowed, with direct sales of farm produce
from farmer's land to contract farming sponsor
● Single market fee: Market fee is collected in a single location on sale of registered
agricultural goods in any market region
● Dispute: Provision for settling disputes between private market/consumer market and
market
● Improving market infrastructure: APMC's revenue is used to fund development of
marketing infrastructure
Major issues with the functioning of APMCs

In the initial years, APMC acts helped remove malpractices and freed farmers from the
exploitative power of middlemen. However, there are some major issues with functioning
of APMCs
● Poor infrastructure: APMCs suffer from poor infrastructure like lack of cold-storage
and transport facilities. As a result, much of perishable commodities gets wasted
○ Also with time, there was a palpable loss in growth in market facilities
and by 2006, it had declined to less than one-fourth of growth in crop
output after which there was no further growth
○ Market facilities did not keep pace with increase in output and
regulation did not allow farmers to sell outside APMC markets
○ Farmers were left with no choice but to seek help of middlemen
○ Net result was system of interlocked transactions that robs farmers of
their choice to decide to whom and where to sell, subjecting them to
exploitation by middlemen
● Corruption and exploitation of farmers: Markets are over-regulated leading to a
lot of corruption and exploitation of farmers
○ APMC have become source of revenue generation. In several states,
commission charges were increased without any improvement in the
services. And to avoid any protests from farmers against these high charges,
most of these were required to be paid by buyers like the FCI
○ Example: Haryana and Punjab in 2020- mandi fees and rural
development charges for wheat and non-basmati rice purchased by
FCI are four to six times the charges for basmati rice purchased by private

4
players. This not only results in a heavy burden on Centre but also increases
logistics cost for domestic produce and reduces trade competitiveness
● Hoarding of agricultural produce by APMC middlemen leads to an artificial
shortage of food supply in open market, thereby driving up food inflation
● Under APMC regulation, no exporter or processor can directly buy agricultural
produce from farmers. This discourages processing and agri-exports
Model Agriculture Produce and Livestock Marketing (Promotion and

Facilitating) Act (APLM), 2017
Formulated by Government of India to replace APMC Act 2003 and to provide
states with a model to enact new legislation and bring comprehensive market reforms in
agriculture sector
Purpose of the APLM, 2017 Act

● To create single agriculture market with a single licence in which agriculture
produce and livestock would be traded
● To allow free competition, promote transparency, unify fragmented markets
and facilitate flow of commodities, and encourage operation of multiple marketing
channels
● State governments are required to make amendments in their respective AMPC Acts
to make them confirmative to this Act
Key provisions of the Draft Model Act

● Provides for a regulated wholesale agri-market at a distance of every 80km
o To execute this, it has been proposed to issue licences to new private
players and traders who establish a wholesale market. Even
warehouses, private market yards and cold storages would be permitted to act
as regulated markets
● Farmers and traders will be able to transact all such regulated agri-markets within state.
There are no separate fees allocated for individual markets. Greatest extent of
a market fee is not more than 1% for fruits and vegetables and 2% for food grain.
Commission agents’ fee can go up to 2% for non-perishables and 4% for perishables
● Specifies a single licence for trading within State and at National level
● Traders will be allowed to sell perishables outside existing mandis
● Farmers can directly sell their produce to the bulk buyers
● All regulatory powers lie with office of director of agricultural marketing in
State, who issues licences to traders and new private players. This power is vested
with mandis who are managed by Board of Directors
● Also has provision to promote online or spot (e-national agriculture market)
agriculture market platform
Essential commodities act of 1955

Law enacted by government of India to control production, supply, and distribution
of essential commodities, such as food, fuel, medicines, and fertilizers, during times of
emergency or in situations of price rise or hoard

5
Key Provisions of the Act

● Definition of Essential Commodities: Essential commodities are not specifically
defined in Essential Commodities Act, 1955, but Section 2(A) of act underlines
that an “essential commodity” means a commodity mentioned in Schedule of
the Act
○ Act gives powers to central government to add or remove a commodity in
‘Schedule. Example: Face masks and sanitizers were added to list on
March 13, 2020 in wake of COVID-19 outbreak
○ Till 2021, “Schedule” included 7 commodities including “drugs, fertilisers,
foodstuffs like edible oils, hank yarn made wholly from cotton, petroleum and
petroleum products, raw jute and jute textiles, seeds of food-crops and seeds
of fruits and vegetables, seeds of cattle fodder, jute seed, cottonseed
● Powers of the Central Government: To control production, supply, and
distribution of essential commodities
○ Government can regulate prices of essential commodities, issue orders for
seizure of stocks held by traders, and regulate movement of essential
commodities across states
● Provisions for Emergencies: Empowers government to take action during
emergencies, such as war, famine, natural disasters, or other situations where supply
and distribution of essential commodities are disrupted
● This act prohibits hoarding and black marketing of essential commodities
Challenges of Essential commodities act of 1955

● Economic Survey 2019-20 highlighted that government intervention under ECA
1955 often distorted agricultural trade while being totally ineffective in curbing inflation.
Such intervention does enable opportunities for rent-seeking and harassment. Rent-
seeking is a term used by economists to describe unproductive income, including from
corruption
● Essential Commodities Act, 1955 was useful in 1960s and 1970s, when India
was still a net food importer
○ Government action under ECA 1955 often damaged agricultural trade while
being completely ineffective in controlling inflation, according to Economic
Survey 2019-20
● Due to government’s intervention, traders tend to buy far less than their usual
capacity and farmers often suffer huge losses during surplus harvests of
perishables
○ This led to farmers being unable to get better prices due to lack of investment
in cold storage, warehouses, processing and export
Essential Commodities (Amendment) Act, 2020

● Amends Essential commodities act of 1955
● Empowers central government to control production, supply, distribution, storage,
and trade of essential commodities
● Allows government to regulate supply of certain items like pulses, edible oil and onion
etc. only in extraordinary conditions like war and famine
● Aims at promoting food processing sector in India which suffers from low private
sector participation due to stock holding limits
● It has been repealed by Parliament in 2021

6
Comparison of Essential Commodities (Amendment) Act, 2020 and Essential

commodities act of 1955
● Regulation of food items: 1955 Act empowers central government to notify
certain commodities (such as food items, drugs, fertilisers, and petroleum products) as
essential commodities. Central government can regulate or prohibit production,
supply, distribution, and trade of such essential commodities under Act
○ Essential Commodities (Amendment) Act, 2020, provided that central
government can regulate supply of certain food items (as may be notified),
including cereals, pulses, potato, onions, edible oilseeds, and oils, only under
extraordinary circumstances
○ Such circumstances include: (i) war, (ii) famine, (iii) extraordinary price
rise, and (iv) natural calamity of grave nature
● Imposition of stock limit: 1955 Act empowers central government to regulate
stock of an essential commodity that a person can hold
○ Essential Commodities (Amendment) Act, 2020 specified that stock
limits should be imposed only based on price rise. A stock limit may be
imposed on agricultural produce only if there is: 100% increase in retail price in
case of horticultural produce, or 50% increase in retail price in case of non-
perishable agricultural food items
Integrated Scheme for Agricultural Marketing (ISAM)

In 2013, Government of India approved a proposal of the Department of Agriculture and
Cooperation for continuation and integration of on-going Central Sector Schemes as
Integrated Scheme for Agricultural Marketing (ISAM). The ISAM consists of the
following sub schemes namely:
1. Agricultural Marketing Infrastructure (AMI)
2. Marketing Research and Information Network (MRIN)
3. Strengthening of Agmark Grading Facilities (SAGF)
4. Agribusiness Development (ABD) through Venture Capital Assistance (VCA) and
Project Development Facility (PDF)
5. Choudhary Charan Singh National Institute of Agricultural Marketing (NIAM)
Objectives of ISAM
● To promote creation of agricultural marketing infrastructure by providing
backend subsidy support to State, cooperative and private sector investments
● To promote creation of scientific storage capacity and to promote pledge
financing to increase farmers’ income
● To promote Integrated Value Chains (confined up to stage of primary processing only)
to provide vertical integration of farmers with primary processors
● To use ICT as vehicle of extension to sensitise and orient farmers to respond
to new challenges in agricultural marketing
● To establish a nation-wide information network system for speedy collection and
dissemination of market information and data on arrivals and prices for its efficient and
timely utilization by farmers and other stake holders
● To support framing of grade standards and quality certification of agricultural
commodities to help farmers get better and remunerative prices for their graded
produce

7
● To catalyse private investment in setting up of agribusiness projects and thereby

provide assured market to producers and strengthen backward linkages of agribusiness
projects with producers and their groups
● To undertake and promote training, research, education, extension and consultancy in
agri marketing sector
e- National Agriculture Market

● A pan-India electronic trading portal, aims to integrate current APMCs and other
market yards to create a unified national market for agricultural commodities
● Although NAM is a "virtual" market, it is backed by a physical market (mandi)
● States receive financial assistance to implement NAM through Agri Tech Infrastructure
Fund
● Implemented by Department of Agriculture and Cooperation through Small Farmers
Agribusiness Consortium, which serves as the implementing agency
● Small Farmers Agribusiness Consortium (SFAC) is the lead agency for
implementing e-NAM under the aegis of Ministry of Agriculture and Farmers’ Welfare,
Government of India
Expected Benefits
● Improve mandi operations' operating efficiency and transparency
● Increase market access and provide farmers additional options by selling from a
warehouse
● For the local merchant in the mandi, a larger national market for secondary trading
● Lower intermediation costs for bulk importers, processors, and exporters, among
others
● Remove imbalance in information
● Will result in uniform licensing, fee collection, and product movement procedures
● It will result in improved returns for farmers, lower transaction costs for buyers, and
more consistent prices and availability for consumers in the next 5-7 years
e-NAM offers several advantages to various stakeholders

● Farmers: can generate competitive
returns on their investment by selling
their goods directly to consumers
without help of brokers or
middlemen
● Traders: Traders will be able to do
secondary trading from one APMC
to another one anywhere in India.
Local traders can get access to larger
national market for secondary
trading
● Buyers, processers, and
exporters: Buyers, processers,
and exporters will be able to
source commodities from any mandi in India hence decreasing their inter-mediation
cost. They won't need to be present physically or rely on middlemen

8
● Consumers: e-NAM will increase number of traders and competition among them
increases. This translates into stable prices and availability to consumers
● Mandis
○ There will be reduction in bookkeeping and reporting system as it will be
generated automatically
○ Monitoring and regulation of traders and commission agents becomes easy
○ Transparency in process eliminates scope of manipulation of
tendering/auctioning process
○ Will reduce manpower requirements as tendering/auctioning process is carried
out electronically
○ Eliminates information asymmetry as all activities of an APMC can be known
directly from website
Farmer Producer Organizations (FPO)

Producer Organization (PO) is legal entity formed by primary producers, viz. farmers, milk
producers, fishermen, weavers, rural artisans, craftsmen. A PO can be a producer company,
cooperative society or any other legal form which provides for sharing of profits/benefits
among members. FPO is a type of PO where members are farmers. Small Farmers’
Agribusiness Consortium (SFAC) is providing support for promotion of FPOs.
Role of FPO
Act as aggregator for member farmers including from inputs to output which will enhance
economy of scale and bargaining power of member farmers. In case of unsold Lots,
Logistics arrangement is to be made by FPO/FPC
Aim
To ensure better income for producers through organisation of their own. Small
producers do not have volume individually to get benefit of economies of scale
Features of FPO
● Voluntary organisations controlled by farmer-members who actively participate in
making decisions and setting policies
● FPOs are open to persons who are willing to accept responsibilities of membership
without social, gender, political, racial, or religious discrimination
● They are promoted and formed through Cluster-Based Business Organisations (CBBO)
● FPOs are promoted under ‘One District One Product’ to encourage better branding
and specialisation, processing, marketing, and exports by FPO
Note: Recently, Government of India has approved and launched the Central Sector
Scheme of “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)”
to form and promote 10,000 new FPOs till 2027-28. Budget for 2018-19 announced
supporting measures for FPOs including a five-year tax exemption
Other Farm Laws

Farmers (Empowerment and Protection) Agreement on Price Assurance and
Farm Services Act, 2020
● Allows the farmers to sell their produce outside registered Agriculture produce
market committees (APMCs)

9
● Aim of this law is to bring uniformity in agriculture trade and realize vision of one
nation one agri market
● Features of the Act are
Farming ● Provides for farming agreement between farmer and buyer

agreement prior to production or rearing of any farm produce
● Minimum period of an agreement will be one crop season, or
one production cycle of livestock
● Maximum period is five years, unless production cycle is more
than five years
Pricing of ● Price of farming produce should be mentioned in agreement
farming ● For prices subjected to variation, a guaranteed price for produce and
produce clear reference for any additional amount above guaranteed price
must be specified in agreement
Dispute ● Farming agreement must provide for conciliation board as well
Settlement as a conciliation process for settlement of disputes
● If dispute remains unresolved by Board after thirty days, parties
may approach Sub-divisional Magistrate for resolution
● Parties will have right to appeal to an Appellate Authority
(presided by collector or additional collector) against decisions of
the Magistrate
Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act,

2020
● Provides framework for promoting contract farming along with safeguarding
interest of farmers
● Aims at solving challenges arising out of fragmentation of land and increasing
participation of private sector in Indian agricultural production which can lead
to more investment in new farm technologies
● Features of the Act
Trade of ● Allows intra-state and inter-state trade of farmers’ produce
farmers’ outside:
produce o Physical premises of market yards run by market committees formed
under state APMC Acts and
o Other markets notified under state APMC Acts
● Such trade can be conducted in ‘outside trade area’, i.e., any place
of production, collection, and aggregation of farmers’ produce including:
o Farm gates, (ii)factory premises, (iii)warehouses, (iv)silos, and
(v)cold storages
Electron ● Permits electronic trading of scheduled farmers’ produce
ic (agricultural produce regulated under any state APMC Act) in specified
trading trade area
● An electronic trading and transaction platform may be set up to facilitate
direct and online buying and selling of such produce through electronic
devices and internet
Market Prohibits state governments from levying any market fee, cess or

10
fee levy on farmers, traders, and electronic trading platforms for trade
abolishe of farmers’ produce conducted in an ‘outside trade area’
d
Issues with the laws that were repealed

● MSP regime issue- MSP assurance emerged as the main sticking point in farmers’
protest. There has been an apprehension among farmers that allowing outside-APMC
trade of farm produce would lead to lesser buying by government agencies in approved
mandis. Protesting farmers have said new laws would thus make MSP system irrelevant
and they would not have any assured income from their farming
● Contract Farming- Farmer organisations are of view that big corporate firms would
exploit poor and illiterate farmers by framing unfavourable contracts with liability
clauses which are beyond understanding of farmer
● Corporatization of Agriculture sector- Farmer organisations argued that with
entry of big corporate firms, farmers would be subjected to unfair competition and
presently also farmers can sell their produce anywhere after paying required fee or cess
● Disturbing existing arrangements - The legislation excludes APMCs from
definition of “trade areas” to provide freedom of choice to farmers to sell their
produce anywhere. However, protesters argue this provision will confine APMC
mandis to their physical boundaries and give free hand to big corporate buyers. APMC
mandi system has developed very well as every mandi caters to 200-300 villages. But
new ordinance has confined mandis to their physical boundaries creating a disruption in
rural areas
● Loss of revenue for the state government - Market fee and rural development fee
are some of big sources of state government’s income. Punjab and Haryana
governments are estimated to lose Rs 3500 crore and Rs 1600 crore respectively if
state governments are not allowed to levy taxes. This will lead to further reduction in
fiscal health of governments and make them more dependent on union government for
funding thereby adversely impacting federal character of India
● Issues in Dispute settlement mechanism - Since order of conciliation board is
final and binding, farmers fear proposed system of conciliation can be misused against
them. They say legislation does not allow farmers to approach a civil court
Government’s Rationale behind the Laws

● Private Investment- Government was of view that to improve status of Indian
agriculture sector, private participation for technology enhancement and realising
economies of scale with contract farming is crucial. Private investment would lead to
reduction in input costs for farmers and bring in modern farming methods to increase
productivity of the Indian agriculture sector
● Freedom to sell agricultural produce- Government realising challenges faced by
farmers during selling their produce in APMCs like multiple taxes, cartelization among
middle men and corruption among mandi officials, aimed to provide the opportunity to
farmers to sell their produce anywhere in the country. This would have lead to better
price discovery and breaking nexus of middle men and mandi officials
● Reduction in cost of trade- Government argued that provision to restrict state
governments to levy any tax or fee in “trade area” would lead to reduction in cost of
trade for both farmers and traders

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● Better Dispute Redressal system- Government in order to safeguard interest of

farmers provided for dispute settlement through conciliation under sub divisional
magistrate who would refer it to the conciliation board. This would reduce delays in
dispute resolution and reduce cost of grievance redressal along with promoting
alternate dispute redressal mechanisms in India
● Reduce burden of government exchequer- MSP system is politically sensitive and
financially unviable for government. Some economists have called MSP system of India
one of costliest government food procurement programmes in the world. Government
aimed at making agriculture sector self-sufficient in terms that government only acts as
facilitator and neutral arbitrator to achieve maximum governance and minimum
government
● Food Processing Sector- Relaxation in essential commodities act could act as a shot
in arm for food processing sector. Due to strict stock holding limits, private investors
were not able to purchase large quantities of agri produce at competitive prices which
is crucial input good for food processing sector. It would not only lead to creation of
better infrastructure in rural areas along with reducing wasting of agricultural produce
but also would lead to more employment generation in rural areas and reduce rural
distress with value addition in farm produce which will increase farmer income
Procurement, Storage and Warehousing

Procurement of Food grains
Procurement of food grains is one of the most important activities of food policy of
Government of India. It serves following purposes:
1) Provides remunerative prices to farmers and avoid distress sale of food grains
at prices below Minimum Support Price (MSP) and also encourages farmers
to increase production of food grains
2) Also enables Government to build up buffer stocks of food grains which are vital
to food security of country
3) Requirements of Targeted Public Distribution System (TPDS) are also met from
food grains procured by Government agencies for the Central Pool
Procurement Policy in India

Who carries out Procurement operations?
● On behalf of Government of India are carried out by Food Corporation of
India (FCI) and other State Government agencies
● Procurement prices are based on minimum support price announced by
Ministry of Agriculture on recommendations of Commission for Agricultural Costs
and Prices (CACP)
○ Procurement Prices: The price fixed by Government for different crops.
Government buys crop from farmers at this price. These are higher than MSP
and are meant essentially for purchase of quantities needed by Government to
maintain its Public distribution system and for building up Buffer Stock
● These prices are announced by Government much before commencement of Rabi and
Kharif marketing seasons
● FCI and State Government agencies in consultation with concerned State
Government, open large number of purchase centres throughout state to
facilitate purchase of food grains

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Procurement Policy
● Procurement policy is open ended
● Under this policy, wheat and paddy are offered by farmers are purchased at
Minimum Support Price (MSP) by State Government agencies including Food
Corporation of India (FCI) for Central Pool
● However, if producer/farmer gets better price in comparison to MSP, they
are free to sell their produce in open market i.e. to private trader/ anyone
Centralised Procurement System

● Under Centralised Procurement System, procurement of food grains in Central Pool
are undertaken either by FCI directly or State Government agencies
procures food grains and handover stocks to FCI for storage
○ Central pool refers to stocks procured through MSP operations for
welfare schemes and calamity relief
● Cost of foodgrains procured by State agencies is reimbursed by FCI as soon
as stocks are delivered to FCI as per cost-sheets issued by GOI
Decentralised Procurement System (DCP)

● Decentralized procurement scheme of Government of India is in operation
since 1997
● Under this scheme, State Government itself undertakes direct purchase of
paddy/rice and wheat and also stores and distributes these food grains under
National food security Act (NFSA) and other welfare schemes
● In other words, state governments utilize foodgrains procured locally from within state
for distribution under various schemes
● In case of excess procurement in any state, foodgrains are handed over to FCI for
storage or distribution to other states
● Central Government undertakes to meet entire expenditure incurred by
State Governments on procurement operations as per approved costing
● Central Government also monitors quality of food grains procured under
scheme and reviews arrangements made to ensure that procurement operations are
carried smoothly
● The scheme: (i)reduces overall transportation cost, (ii)encourages procurement in non-
traditional states, and (iii)enables procurement of local foodgrains, which may be more
suited to local taste
Storage and Warehousing

● After procurement, well-planned storage of food grains at different locations in
various States in the country is carried out for ensuring adequate and timely
supply of food grains for distribution through fair price shops under
Targeted Public Distribution System (TPDS)
● Food Corporation of India (FCI) is the main agency which provides required
storage capacity for food grains in the country
● Besides constructing its own godowns, also hires storage capacity from Central
Warehousing Corporation (CWC), State Warehousing Corporations
(SWCs), State Governments and private parties

13
Agencies Involved
Food Corporation of India
● Statutory organisation set up in 1965 under Food Corporation Act 1964
● Main agency providing food grains to PDS; Primary duty is to undertake purchase,
storage, movement, transport, distribution and sale of food grains and other foodstuffs
● Objectives of FCI
● To provide effective price support to farmers; ensure that farmers are getting
announced remunerative prices and consumers are getting food grains at uniform
price fixed by Government
● To procure and supply grains to PDS for distributing subsidised staples to
economically vulnerable sections of society
● To keep strategic reserve to stabilise market (for basic food grains)
Central Warehousing Corporation (CWC)

● Government of India undertaking, set up in 1957 under Agricultural Produce
(Development & Warehousing) Corporation Act, 1956
o Subsequently replaced by Warehousing Corporation Act, 1962 to
provide for incorporation and regulation of Warehousing Corporations for
purpose of warehousing of agricultural produce and certain other commodities
notified by Central Government
● In addition to implementing storage plan of Government of India, CWC is also
providing warehousing facilities to Government and private sector
● Besides food grains, CWC also stores tea, coffee, spices, vegetable oils, dry
fruits, jaggery, sugar, oilseeds, paper, metals, chemical fertilisers and
electronic items etc
State Warehousing Corporations

● Separate warehousing corporations were also set up in different states of the Indian
Union
● The areas of operation of State Warehousing Corporations are centres of district
importance
● Total share capital of State Warehousing Corporations is contributed equally by
concerned State Govt. and Central Warehousing Corporation
Significance of Storage and Warehousing

● Scientific archiving: Product is safeguarded against quantitative and qualitative losses
by using appropriate preservation methods
○ Storage protects quality of perishable and semi-perishable products
from deterioration
○ Some of the goods have a seasonal demand. To cope with this demand,
production on a continuous basis and storage becomes important
● Finances: Provide financing to meet financial demands of person who stores product.
Nationalised banks extend credit to amount of 75 to 80 percent of value of
warehouse receipt issued for stored goods
● Stabilisation of Price: By preventing farmers from making post-harvest sales
○ Farmers can deposit his/her produce in warehouses when there is a
price crash for food items and sell his/her produce at a later date when there
is a price rise

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● Private investment: Construction of storage infrastructure brings in private

investment
● Market Intelligence: Also provide market information to producers who store their
goods there
○ Storage of goods, from time of production to time of consumption, ensures a
continuous flow of goods in market
● Food Processing Industries: Require raw food to be stored, marketed, or
preserved for consumption later. Hence, developing cold chain infrastructure will give
impetus to food processing industries
Issues related to storage and Warehousing

● Regional Storage Capacity Disparities: According to CAG assessment, there are
substantial disparities in storage capacity availability and a severe scarcity of storage
space in consuming states: FCI's entire storage capacity was 336.04 LMT, with 64
percent of that in significant procurement states including Punjab, Haryana, Andhra
Pradesh, Uttar Pradesh, and Chhattisgarh; only 13 percent of total capacity was in
consuming areas like Rajasthan and Maharashtra. The remaining capacity of 23% was
shared by other 24 states and territories.
● Inadequate storage infrastructure: Lack adequate ambience, such as proper
temperature and moisture- greatly affects quality of grains and leads to damage and
wastage of produce. In 2013 CAG reported that inadequate safe and scientific storage
practices resulted in excessive damages to food grains in central pool maintained by
SGAs in Punjab and Haryana
● Low levels of private investment: Less appealing to private enterprises due to low
returns
● Uneven distribution of capacity: Skewed distribution of capacity, with North India
having access to 60% of total storage facilities
● Lack of cold storage infrastructure: India's existing cold storage capacity of 31 MT
is hardly enough to store country's fruit and vegetables. Majority of existing cold
storages are single commodity storages, which means that their capacity sits idle for up
to six months of year. State-by-state distribution of cold-chain infrastructure is similarly
inconsistent
● Storage facilities in poor condition: Warehouse infrastructure is of poor quality,
which can lead to water percolation through roof and walls, causing product damage
● Poor road connectivity: In steep places, road connectivity is particularly poor. Poor
rural road upkeep is also key stumbling block. Connections to local and feeder
highways are still inadequate. Unable to connect with market, it costs farmers lot of
money, especially if it's perishable item
● Rail freight usage should be kept to bare minimum: Approximately 1.9 percent
of perishable fruits and vegetables are delivered by rail, while remaining 97.4% is
transported by road. This ratio must change in favour of rail system
● Cost: In comparison to wealthy countries, India's shipping and storage costs are quite
high. High cost of Indian agricultural products lowers their competitiveness in both
domestic and international markets
● Lack of refrigerated trucks: There is lack of investment in refrigerated trucks,
which are essential for cold storage logistics
● Infrastructure Facilities at Ports: India has been traditionally importer of
foodgrains and therefore, infrastructure facilities available at ports are basically

15
meant for unloading operations and not for exports. Even latest mechanised
facilities at Jawaharlal Nehru Port, Navi Mumbai, have been designed for import
purposes only. There is also lack of general cargo berths at major ports, and
very limited warehousing facilities are available for storage of foodgrains at
ports
Standing Committee report Procurement, Storage and Distribution of

Foodgrains by FCI, 2021
Standing Committee on Food, Consumer Affairs, and Public Distribution (Chair: Mr. Sudip
Bandyopadhyay) submitted its report on subject ‘Procurement, Storage, and Distribution
of Foodgrains by Food Corporation of India’ on August 9, 2021
Key observations and recommendations of the Committee include

● Procurement: Most of the procurement operations for foodgrains are carried out by
state agencies. Share of FCI in direct procurement is less than five percent
○ Recommended that central government and FCI should assist state
governments in creation of adequate infrastructure for effective
procurement
● Decentralized procurement: Even after 23 years of inception of the scheme,
it has been undertaken by only eight states in case of wheat, and 15 states in
case of rice
○ Noted that scheme has contributed remarkably to increased efficiency of Public
Distribution System (PDS), by making it possible to supply foodgrains suited to
local taste
○ Committee recommended that Department of Food and Public
Distribution should encourage adoption of scheme in non-traditional states
■ Committee also recommended that department and FCI should
also take steps for timely creation of necessary infrastructure for this
purpose, in coordination with concerned state governments
● Refusing procurement at centers: Lwer staff posted at procurement centers
sometimes refuse to procure on non-bonafide technical reasons, such as moisture
content in produce
○ Causes great hardships to farmers, thus leading to distress sale
■ Recommended foodgrains should not be rejected on flimsy
grounds if they conform to Fair Average Quality norms
● Storage capacity: Despite various audits for optimum utilization of storage capacity,
utilization of hired storage facilities is still very high
○ Meanwhile, FCI-owned facilities remain under-utilized
○ Committee recommended FCI to maximize utilization of owned facilities
before hiring. Hiring should be done only if absolutely necessary to minimize
cost incurred in paying rent
● Construction of godowns: FCI could not achieve targets for construction of
godowns in 2020-21
○ Recommended expediting ongoing construction projects, particularly
in northeastern states, Jammu Kashmir, Andaman and Nicobar
Islands, and Lakshadweep
● Damaged foodgrains: Very high value of damaged foodgrains during 2017-20 (Rs
12.6 crore). Damaged foodgrains accrued mainly due to pest attacks, exposure

16
to rain, floods, leakages in godowns, procurement of poor quality stocks,

and negligence of officials
○ Recommend adoption of adequate scientific storage measures to prevent any
damage. It recommended creation of storage capacity in: (i) major wheat
producing states (e.g., Haryana and Punjab), and (ii) other states (e.g.,
Maharashtra, Tamil Nadu, and Rajasthan) where non-cultivable land may be
available for this purpose
Government Initiatives for Augmenting Storage Capacity

● National policy on handling, storage and transportation of foodgrains: In the
year 2000, GOI formulated National Policy on Handling, Storage and Transportation of
Food grains to reduce storage and transit losses and to modernize system of handling,
storage and transportation of food grains. Under the policy, GOI’s main emphasis was
modernization and upgradation of bulk grain handling infrastructure
○ Objectives of Policy
■ To reduce storage and transit losses at farm level, where about 70% of
total foodgrains production is retained and consumed and also to
encourage farmer to adopt scientific storage methods
■ To modernise system of handling, storage and transportation of
foodgrains procured by Food Corporation of India (FCI)
■ To harness efforts and resources of public and private sectors, both
domestic and foreign, to build and operate infrastructure for
introduction of bulk handling, storage and transportation of foodgrains
in the country
● Gramin Bhandaran Yojana : Capital investment subsidy scheme announced in 2001;
Subsidy is provided for construction and renovation of godowns in rural areas. Can also
be availed by rural godowns which are positioned in various food parks
● Augmenting storage capacity in States of North Eastern (NE) Region:
Government is implementing Central Sector Scheme for construction of godowns with
focus on augmenting storage capacity in States of the North Eastern (NE) Region and
few other States. Under this Scheme, funds are released directly to FCI in form of
equity for land acquisition and construction of storage godowns and infrastructure like
railway sidings, electrification, installation of weighbridge, etc
● Construction of steel silos: Government of India has also approved an action
plan/road map for construction of steel silos in the country in Public Private Partnership
(PPP) mode for modernising storage infrastructure and improving shelf life of stored
foodgrains
● New scheme called "Operation Greens" was introduced in 2018-19 budget speech
to encourage agri-logistics, processing facilities, and professional management
○ Accordingly, Ministry has been implementing scheme for development of
Tomato, Onion and Potato (TOP) value chain since November 2018
○ Scheme has two components namely (I) Long Term Intervention-Integrated
Value Chain Development Projects and (II) Short-Term Interventions
■ Long Term Interventions includes:
● Value realisation of farmers by targeted interventions to
strengthen production clusters and FPOs, and linking/
connecting the farmers with market

17
● Reduction in post-harvest losses by creation of farm gate

infrastructure, development of suitable agri-logistics, creation
of appropriate storage capacity linking consumption centers
● Increase in food processing capacities and value addition in
value chain by creating firm linkages with identified production
clusters
■ Short Term Interventions includes:
● Objective of Scheme is to protect the growers of Eligible
Crops from making distress sale and to reduce post-
harvest losses
In order to boost storage infrastructure, following steps could be undertaken

● Government should facilitate speedy clearance of projects concerning development of
infrastructure for bulk handling, transportation and storage of foodgrains
● Government can enter into bilateral agreements with other countries/international
agencies for providing technical/financial assistance
● Government can take necessary legislative/administrative measures for removing
impediments with regard to stock control order/movement control order framed by
various state governments
● Government can make available facilities of Railways for bulk transportation
● Promote negotiable Warehousing Receipt System by which farmers could hold their
grains back from market and meet their working capital/short-term requirement by
borrowing from Banks against these receipts
PDS, Buffer Stock and Food Security

Public distribution system (PDS) is an Indian food Security System established under
Ministry of Consumer Affairs, Food, and Public Distribution; Evolved as a system
of management of scarcity through distribution of food grains at affordable prices
Objectives of Public Distribution System

● Aims to provide essential consumer goods at cheap and subsidised prices to the
consumers
● Helps in insulating people from impact of rising prices of essential commodities
● Helps to maintain minimum nutritional status of our population
● Aims to put an indirect check on open market prices of various items
Evolution of PDS in India

● Revamped Public Distribution System (RPDS)
○ Launched in June, 1992.
○ Idea was to improve its reach in far-flung, hilly, remote and inaccessible areas
where substantial section of underprivileged classes lives
● Targeted Public Distribution System (TPDS)
○ Launched in 1997
○ Under TPDS, beneficiaries were divided into two categories:
■ Households below poverty line or BPL
■ Households above poverty line or APL
○ Seeks to provide food grains to people Below Poverty Line at highly subsidized
rate from PDS and food grains to people above poverty line at higher prices

18
● Antyodaya Anna Yojana (AAY)

○ Introduced in 2000
○ A step in the direction of making TPDS aim at reducing hunger among poorest
segments of BPL population
○ 25kg/month per household (increased to 35kg in 2002) was provided at highly
subsidized rate of Rs 2/kg of wheat and Rs 3/kg of rice
● National Food Security Act, 2013
○ Launched in 2013
○ Relies largely on existing TPDS to deliver food grains as legal entitlements to
poor households
○ Eligible persons is entitled to receive 5 Kgs of food grains per person per
month at subsidized prices of Rs. 3/2/1 per Kg for rice/wheat/coarse grains
Significance of PDS
● Helps in ensuring Food and Nutritional Security of the nation
● Helped in stabilising food prices and making food available to poor at affordable prices
irrespective of prices in the market
● Maintains buffer stock of food grains in warehouse so that flow of food remain active
even during period of less agriculture distress and other emergency situations
● Helped in redistribution of grains by supplying food from surplus regions of country to
deficient regions
● System of minimum support price and procurement has contributed to \increase in
food grain production
Functioning of PDS
● Central and State Governments share responsibilities in order to provide food
grains to identified beneficiaries
● Through Food Corporation of India, central government is in charge of
making food grains required for the PDS available and supplying a subsidy to
make it affordable
● FCI buys food grains from farmers at minimum support price (MSP)
○ It distributes food grains to all states at same central issue price (CIP)
● Beneficiaries use the Fair price shops (FPS) to buy subsidized PDS items
○ Licensing of FPSs and monitoring compliance are mentioned under PDS
Control Order 2001, issued by Department of Food and Public Distribution,
Government of India.
Points to note
● Food Subsidy: Food subsidy has three elements:
○ Consumer subsidy i.e. difference between Economic cost and Central Issue
Price (CIP) under different schemes of GoI multiplied by quantity of food grains
issued under different schemes
○ Buffer Carrying Cost i.e. part of operation cost apportioned to buffer stock
based on excess stock held over and above operation stock (four months sale)
○ Third part includes subsidy on coarse grains, regularisation of operation losses
of Food Corporation of India and other non-plan allocation to State Govts
● Economic cost: Economic Cost is the total cost to FCI
○ Consists of Acquisition Cost and Distribution Cost

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○Acquisition cost consists of

Minimum Support Price (MSP) plus
procurement incidental cost
○ Note: Procurement incidentals are
expenses incurred during
procurement till foodgrains reach
first point of godown. Elements are
state taxes, commission to
societies, bagging materials, mandi
labour, transportation from mandi
to depot etc
○ Methodologies followed for Calculation of Economic Cost are based on GoI
circular to apportion operational cost of FCI into Buffer Carrying cost and
Distribution cost
○ Distribution cost becomes part of Economic cost whereas Buffer carrying cost
becomes part of Buffer subsidy
● Operational Cost: Operational Cost of FCI is categorized under following elements:-
○ Transportation Cost/Freight
○ Handling Charges
○ Storage Losses
○ Interest cost
○ Operational Losses
○ Administration Charges
Targeted Public Distribution System (TPDS)

● Government of India launched TPDS with focus on poor in 1997
● Aim: Providing food grains to people below poverty line at highly subsidised
prices from PDS and food grains to people above poverty line at much higher prices
than poverty line
● Identification of poor under the scheme was done by States as per State-wise poverty
estimates of Planning Commission for 1993-94 based on the methodology of "Expert
Group on estimation of proportion and number of poor” chaired by Late Prof
Lakdawala
● Key Features of TPDS
○ Targeting: Maximum income level for population to be covered under BPL was
kept at Rs. 15,000 per annum. TDPS provides wheat at Rs. 2/kg., rice Rs. 3/kg and
millets at Rs. 1/kg to BPL families
○ Dual (multiple) prices: (i) Prices for BPL consumers and (ii) Prices for APL
consumers. A third price, introduced in 2001, is for beneficiaries of Antyodaya
Anna Yojana (AAY)
○ Centre-State Control: State governments create and oversee PDS, whereas
central government distributes foodgrains to states. Central Government
determines BPL population's size and its entitlements under TPDS
Antyodaya Anna Yojana

● Objectives: To target poorest of poor population and provide them relief from
hunger
● Intended beneficiaries:

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○ Landless agricultural labourers, marginal farmers, rural artisans /craftsmen and

people earning their livelihood on a daily basis in the informal sector
○ Widows, terminally ill or disabled persons, persons aged 60 years or more,
single women or single men with no family or societal support or assured
means of subsistence
○ All primitive tribal households and all eligible Below Poverty Line (BPL) families
of HIV positive persons
● Salient Features:
○ Covers poorest of the poor families from amongst BPL families
covered under Targeted Public Distribution System within States and provides
them food grains at highly subsidized rate of Rs.1/ per kg coarse grains, Rs.2/
per kg. for wheat and Rs. 3/ per kg for rice
○ Part of NFSA and eligible households are entitled to 35 Kg of food grains per
household per month
○ States/UTs are required to bear distribution cost, including margin to dealers
and retailers as well as transportation cost
National Food Security Act, 2013

● National Food Security Act, was passed on 10th September, 2013
● Objective is to provide for food and nutritional security in human life cycle approach,
by ensuring access to adequate quantity of quality food at affordable prices to people to
live a life with dignity
● Eligible persons is entitled to receive 5 Kgs of food grains per person per month at
subsidized prices of Rs. 3/2/1 per Kg for rice/wheat/coarse grains
● Existing Antyodaya Anna Yojana (AAY) households, which constitute poorest of
poor, will continue to receive 35 Kgs of food grains per household per month
● Act gives special focus on nutritional support to women and children
Salient features of the National Food Security Act, 2013

Coverage and ● 75 % of rural population and 50 % urban population are
entitlement under entitled to 5 kg of food grains per person under TPDs
Targeted Public ● AAY households will be protected at 35 kg per household
Distribution per month
System
Subsidized prices ● Subsidized prices of Rs. 3/2/1 per kg for rice, wheat and
under TPDS and coarse grains for period of three years from date of
their revision commencement of Act
● Thereafter prices will be suitably linked to Minimum
Support Price (MSP)
Identification of ● Work of identification of eligible households is to be
Households done by States/UTs
Nutritional ● Pregnant women and lactating mothers and children in
Support to women age group of 6 months to 14 years will be entitled to
and children meals as per prescribed nutritional norms under
Integrated Child Development Services (ICDS) and
Mid-Day Meal (MDM) schemes
Maternity Benefit ● Pregnant women and lactating mothers will also be
entitled to receive maternity benefit of not less than

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Rs. 6,000
Women ● Eldest woman of household of age 18 years or above
Empowerment to be head of household for the purpose of issuing
ration cards
Grievance ● Grievance redressal mechanism at District and State
Redressal levels
Mechanism
Food Security ● Provision for food security allowance to entitled
Allowance beneficiaries in case of non-supply of entitled food
grains or meals.
Limitations of PDS in India

● Limited benefits to poor from PDS: Both Rural and Urban poor have not
benefited much from PDS and their dependence on open market has been much higher
than on PDS
● Urban Bias: Limited mostly to urban areas; Although, there has been expansion of
PDS in rural areas but still there is lack of timely and adequate availability of food grains
● Increasing burden of food subsidy: Burden of food subsidy has become huge due
to increasing stock with FCI and higher procurement prices due to rich farmers lobby
● Loss of Food Grains: Lot of food gains get damaged because of pest attacks, leakages
in godowns, procurement of poor quality stocks, exposure to rains, floods, and
negligence on the part of persons concerned in taking precautionary measures etc
● Inefficiencies in the operations of FCI: Economic cost of FCI food grains operation
has been rising on account of increase in procurement prices and other costs
(distribution cost, carrying cost, etc.) and also due to inefficiencies caused by highly
centralized and bureaucratic mode of operations
● PDS results in Price increases- Due to large procurement of food grains every year
by Government, net quantities available in open market reduce, leads to
increase in Price. This dual market system operates to disadvantages of poor,
especially those who are excluded from food security system
● Wrong identification of beneficiaries: Prone to large inclusion and exclusion
errors. Implies that entitled beneficiaries are not getting food grains while those that
are ineligible are getting undue benefits
● Environmental issues- Over-emphasis on attaining self-sufficiency and surplus in food
grains, which are water-intensive, has been found to be environmentally unsustainable.
Procuring states such as Punjab and Haryana are under environmental stress,
including rapid groundwater depletion, deteriorating soil and water conditions from
overuse of fertilizers
Recent PDS reforms

● Digitization of all of 23 crore ration cards
● 56% of digitized cards have been seeded with Aadhar
● Installation of e-PoS (electronic Point of Sale) devices at fair price shops to track sale of
foodgrains to actual ration card holders on a real time basis
Reforms that can be introduced in the PDS system for improving PDS
● Role of Aadhar: Integrating Aadhar with TPDS will help in better identification of
beneficiaries and address problem of inclusion and exclusion errors. According to

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study by Unique Identification Authority of India, using Aadhaar with TPDS

would help eliminate duplicate and ghost (fake) beneficiaries, and make identification of
beneficiaries more accurate
● Technology based Reforms: Wadhwa Committee, appointed by Supreme Court,
found that certain states had implemented computerisation and other technology-based
reforms to TPDS. Technology-based reforms helped plug leakages of food grains
during TPDS
o Different types of technology based reforms that can be taken are as
follows:
Type of Benefits of Reform
Reform
Digitization of ● Allows for online entry and verification of beneficiary data
Ration Cards ● Online storing of monthly entitlement of beneficiaries, number of
dependants, offtake of food grains by beneficiaries from FPS, etc
Computerised ● Computerizes FPS allocation, declaration of stock balance, web-
allocation to Fair based truck challans, etc
Price Shop ● Allows for quick and efficient tracking of transactions
Issue of smart ● Secure electronic devices used to store beneficiary data
cards in place of ● Stores data such as name, address, biometrics, BPL/APL category,
ration cards monthly entitlement of beneficiaries and family members; thus
prevents counterfeiting
Use of GPS ● Use of Global Positioning System (GPS) technology to track
technology movement of trucks carrying food grains from state depots to FPS
Use of Web- ● Publicises grievance redressal machinery, such as toll free
Based Citizen’s number for call centers to register complaints or suggestions
Portal
● Shanta Kumar recommendation on PDS and NFSA related issues
o GOI should defer implementation of NFSA in states that have not done end to
end Computerization; have not put list of beneficiaries online for anyone to
verify, and have not set up vigilance committees to check pilferage from PDS
o Current coverage of 67% Population under NFSA is huge fiscal
burden. It should be brought down to 40%
o Gradual introduction of cash transfers in PDS, starting with large cities
with more than 1million population; extending it to grain surplus states, and
then giving option to deficit states to opt for cash or physical grain distribution
o Cash transfers can be indexed with overall price level to protect amount
of real income transfers
o Cash can be given in name of lady of the house
o Cash can be routed through Prime Minister's Jan-Dhan Yojana (PMJDY) and
Aadhaar and Unique Identification (UID) number
● Strengthening of existing TPDS system by capacity building and training of implementing
authorities along with efforts to plug leakages is the best way forward
● Can be further strengthened by increased public participation through social audits and
participation of SHGs, Cooperatives and NGOs in ensuring transparency of PDS
system at ground level
● To enhance nutritional level of masses, bio-fortified foods need to be distributed
through PDS that will make it more relevant in backdrop of prevalent malnutrition in
India

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● Food coupons can be provided to beneficiaries through which they can buy
foodgrains from store, and dealer could be reimbursed on production of these coupons
at govt treasury. This will help reduce problems of procurements, diversion and black
marketing of food grains
● Instead of buying through PDS, government should provide universal basic
income to all so that needy could purchase foodgrains as per their choice
One Nation One Ration Card

● Introduced in 2019 on pilot basis in four Indian states
● ONORC allows beneficiary to access his food entitlements from anywhere in
India irrespective of place where ration card is registered
Features of ONORC
● Enabling Right to Food: Previously, ration cardholders would avail their entitlement
of subsidized food grains under National Food Security Act, only from designated Fair
price shop (FPS) within concerned state. However, if beneficiary were to shift to
another state, he/she would need to apply for new ration card in second state. Thus,
ONORC envisages removing geographical hindrance to social justice and enabling right
to food
● Supporting One-Third of Population: Nearly, 37% of population is that of migrant
labourers, Scheme is therefore important for anyone who is going to move from one
place to other
● Reducing Leakages: Because fundamental prerequisite of this scheme is
deduplication. This will ensure that same person does not figure as beneficiary in two
different locations of country. Further, scheme is linked with Aadhaar and biometrics,
this removes most possibilities of corruption
● Reducing Social Discrimination: Particularly beneficial for women and other
disadvantaged groups, given how social identity (caste, class and gender) and other
contextual factors (including power relations) provide strong backdrop in accessing
PDS
Integrated Management of Public Distribution System (IM-PDS)

● The Department, under Public Distribution System (PDS) is implementing technology
driven Central Sector Scheme, namely, Integrated Management of Public
Distribution System (IM-PDS) from April 2018
● Objective:
○ Implementation of nation-wide portability of ration cards under National Food
Security Act, 2013 (NFSA) through ‘One Nation One Ration Card’
○ Creation of national level data repository for de-duplication of beneficiary
data (Aadhaar based)
○ Use of advanced data analytics techniques to bring about continuous
improvements
● Salient Features
○ It is a central sector scheme
○ It is in continuation of ‘End-to-End Computerization of PDS Operations’
○ It facilitates cross-learning and sharing of best practices between States/UTs,
etc
○ It helps in development of advanced web and mobile based applications

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Advantages and disadvantages of PDS and other delivery mechanisms

Mechanism Advantages Disadvantages
PDS ▪ Insulates beneficiaries ▪ Low offtake of food grains
from inflation and price from each household
volatility ▪ High leakage and diversion of
▪ Ensures entitlement is subsidised food grains
used for food grains ▪ Adulteration of food grains
only ▪ Lack of viability of FPS due to
▪ Well-developed low margins
network of FPS ensures
access to food grains
even in remote areas
Cash ▪ Cash in hands of poor ▪ Cash can be used to buy non-
Transfers increases their choices food items
▪ Cash may relieve ▪ May expose recipients to price
financial constraints volatility and inflation
faced by poor, make it ▪ There is poor access to banks
possible to form thrift and post offices in some areas
societies and access
credit
▪ Administrative costs of
cash transfer
programmes may be
significantly lesser than
that of other schemes
▪ Potential for making
electronic transfer
Food Coupons ▪ Household is given ▪ Food coupons are not indexed
– Coupons are freedom to choose for inflation; may expose
given to where it buys food recipients to inflation
people which ▪ Increases incentive for ▪ Difficult to administer; there
they can competitive prices and have known to be delays in
exchange for assured quality of food issuing food coupons and
food. grains among PDS reimbursing shops
stores
▪ Ration shops get full
food grains from poor,
no incentive to turn the
poor away
Buffer Stock Policy

● Reserved stock maintained by Government of India to meet food scarcity arising out
of natural calamities, such as, drought, cyclone, floods, and crop failure
● Reserve stock is utilized in such emergency situations to meet requirement of
Targeted Public Distribution System (TPDS) and to supply additional food grains in
regions affected by natural calamities
● Buffer stock or reserve stock of food grains plays very important role in ensuring food
security

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Buffer Stock Policy of India

● Food grain stocking norms refers to level of stock in Central Pool. Earlier this
concept was termed as Buffer Norms and Strategic Reserve
● Presently stocking norms fixed by Government of India comprise:
o Operational stocks: for meeting monthly distributional requirement under
TPDS and Other welfare schemes (OWS)
o Food security stocks/reserves: for meeting shortfall in procurement
● Buffer norms are fixed by CCEA (Cabinet committee on Economic Affairs
chaired by PM) on quarterly basis as on 1st April, 1st July, 1st October, and 1st
January of every financial year
● From 2015, Government has also decided to create buffer stock of 1.5 lakh
tonnes of pulses to control fluctuation in their prices. National Federation of
Agriculture (NAFED), Small farmers Agriculture Consortium (SFAC) and
Food Corporation of India (FCI) will procure pulses for buffer stock
● Food stock above minimum buffer norms are treated as ‘Excess Stock’, and
government can liquidate them through export, open market sales or additional
allocation to states
Significance of Buffer stock

● Important for Food self-sufficiency and Security
● Bring resilience to crop failure, flood, drought, wars and other natural calamities
● Keep food inflation in check via procurement of excess commodities and release when
prices are soared
● Bring Food Security via availability, accessibility, utilization and stability of basic human
needs across all geographical location
● Supporting farmers in both situations: Not slumping price in case of excess production
and realizing true price via MSP
● Buffer stock helps in prediction of base stock and required stock for implementing
various government schemes. Such prediction helps in forming policies and decision
making for import-export of commodities
Issues with buffer stock policy of India

● Food being perishable products cannot be stored for too long. Hence if not rotated
properly, it will result in wastage
● Stocks level is too high in relation to buffer stock standards which are resulting in huge
cost in terms of storage, interest on value of produce, and wastage
● Foreign countries like USA consider buffer stock as trade-distorting practices and drag
India to WTO
● Government procures around 40-50% of total marketable surplus of rice and wheat,
making government virtual monopsonist in domestic grain market. This has
led to government becoming single largest hoarder of rice and wheat
○ In turn disincentivizes private sector to make long term investment in
procurement, storage, and processing
● There is a high cost of logistics and administration
○ Majority of funds allocated to buy stocks- it becomes troublesome for
Agricultural Ministry and FCI to adjust budget to make everything available for
efficient establishment and working of buffer stock units
○ The challenges are further extended to operational limitations

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○ Also as per Economic Survey 2020, India has become high-cost food
grain economy due to high procurement costs
● Dual failure
○ Spoilage: Huge quantities of stocks are spoiled due to non-scientific storage
methods and at same time, large percentage of population is dying of
hunger in India
○ Warehousing: Lack of space and infrastructure for food grains storage after
procurement
○ Wastage Due to open storage, rodents, climate change and delay in
administration, poor supply chain management
○ Transportation: Problems like Huge cost, Spilling and spoilage at time of
transportation
○ Diversion: Food grains get diverted to black markets, Liquor production,
Ghost beneficiaries etc
Step that can be taken to reform Buffer stock policy

● Shanta Kumar Committee recommendations: One of the key challenges for FCI
has been to carry buffer stocks way in excess of buffer stocking norms.
Recommended transparent liquidation policy that should automatically kick-in when
FCI is faced with surplus stocks than buffer norms
● Economic Survey 2020 recommended the following:
○ Coverage of NFSA should be restricted to bottom 20% of economic ladder
○ Moving towards conditional cash transfers (CCT) under which poor families
are given
○ Money to buy non-subsidized foodgrains from market. This would reduce FCI’s
procurement and stock keeping burden
● Open Market Sale Scheme (OMSS) of excess foodgrains beyond storage capacity
should be implemented to avoid wastage
● Cold storage infrastructure needs to be built so as to conserve perishable
commodities
● Private sector could be encouraged under Public Partnership Model (PPP) to build
such physical infrastructure
Food Security
● Definition of food security has evolved over
a period of time. As a concept, food
security originated in mid-1970s, in the
wake of global food crisis
● Initial focus of attention was assuring
availability and to some degree price
stability of basic foodstuffs at international
and national level
● This was then broadened to incorporate
demand side of food security in early
eighties. During nineties issues such food
safety, nutrition, dietary needs and food
preferences were also considered
important ingredients of food security

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● In FAO report on ‘The State of Food Insecurity, 2001’, food security is

defined as a “situation that exists when all people, at all times, have physical, social and
economic access to sufficient, safe and nutritious food that meets their dietary needs
and food preferences for an active and healthy life”
● World Summit on Food Security stated "four pillars of food security” are
availability, access, utilization, and stability
○ Food availability- Must be available in sufficient quantities and on a consistent
basis. It considers stock and production in a given area and capacity to bring in
food from elsewhere, through trade or aid
○ Food access- People must be able to regularly acquire adequate quantities of
food, through purchase, home production, barter, gifts, borrowing or food aid
○ Food utilization- Consumed food must have positive nutritional impact on
people. Entails cooking, storage and hygiene practices, individual’s health, water
and sanitations, feeding and sharing practices within household
○ Stability- It is necessary to ensure stability in prices
Provisions related to Food Security in India

Article 21 of Fundamental right to life enshrined in Article 21 of the
Constitution Constitution has been interpreted by Supreme Court and
National Human Rights Commission to include right to live with
human dignity, which includes right to food and other basic
necessities
Article 47 of Under Directive Principles of State Policy, it is provided under
Constitution Article 47 that State shall regard raising level of nutrition and the
standard of living of its people and improvement of public health as
among its primary duties
National Food To address food security of people, Government enacted National
Security Act, Food Security Act, 2013
2013
Recent Trends in NFSA

● As per Economic survey 2022-23, till December 2022, NFSA provided, for
coverage of up to 75 percent of rural and up to 50 percent of urban population
highly subsidized food grains at ₹1/2/3 per kg for coarse grains/ wheat/rice,
respectively, at rate of 35 kg per family per month to households covered under
Antyodaya Anna Yojana (AAY) and at rate of 5 kg per person per month to priority
households
○ Government has also decided to provide free foodgrains to about 81.35
crore beneficiaries under the NFSA for one year from January 1,
2023
○ To remove financial burden of poor, government will spend more than
₹2 lakh crore in this period on food subsidies under NFSA and other
welfare schemes
○ Under this, Government will provide 5 kg of foodgrains per person to
Priority Households (PHH) beneficiaries and 35 kg per household to
Antyodaya Anna Yojana (AAY) beneficiaries (poorest of the poor)
free of cost for the next year
○ Procurement from farmers for this programme is at MSP

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○ Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has been

extended and implemented in various phases (Phase VII is latest covering
October-December,2022)
○ Food subsidy bill was higher during 2020-21 and 2021-22 in comparison
to other years as a result of free food distribution programme of government
under PMGKAY
○ This dedicated support was provided to ensure that farmers and vulnerable
households remained protected from the Covid-19 led shocks
Challenges of Food Security in India

● Population: Although major part of Indian population is engaged in agricultural
activities, availability of food for all is challenge due to increasing population of country
● Poverty: One of the biggest challenges which need to be overcome in order to attain
desired food security in country. Percentage of people living below the poverty line
(BPL) is extremely high
● Climatic Change: Farming and agricultural activities have been severely affected by
climatic change over past few years. Some regions face floods while some experience
drought. Similar changes have severely affected livestock, forestry, fisheries and
aquaculture
● Inadequate food distribution: Balance between food distributions has been varied
in urban and rural areas
● Biofuels: Growth of biofuel market has reduced land used for growing food crops
● Corruption: Diverting grains to open market to get better margin, selling poor quality
grains at ration shops, irregular opening of shops adds to issue of food insecurity
● Inadequate storage facilities: Inadequate and improper storage facilities for grains,
which are often stored outside under tarps that provide little protection from humidity
and pests
● Lack of Awareness: Lack of education and training on new techniques, technologies
and agricultural products. Traditional farming methods are slightly more time
consuming and delay production of food grains, etc
● Unmonitored nutrition programmes: Emphasis must be given on introducing and
enacting well-monitored nutrition programmes
Schemes related to Food Security

Integrated Child Development Scheme (ICDS)
● Centrally sponsored scheme launched in 1975, one of the largest child intervention
programs in world with a holistic package of 6 basic services for children up to 6 years
of age, and for pregnant and lactating mothers. These services are-
○ Supplementary feedings (Child-500 calories, 12-15gm protein for 300 days,
Pregnant Mothers-600 calories, and 18-20 gm protein)
○ Immunisation
○ Health Checkups
○ Referral services
○ Health and nutrition education to adult women
○ Non-formal pre-school education to 3-6 years old

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Mid-Day Meal (MDM) Scheme

● World’s largest school feeding program reaching out to about 11 crore children in
Schools and Education Guarantee centres (EGS) across the country
● The National Program of nutritional support to primary education, also called MDM
scheme, was launched in 1995. It is a nationwide central scheme intended to improve-
○ The enrollment and regular attendance
○ To reduce the dropouts in schools
○ To improve nutritional status of primary school children
● From 2008-09, Children from upper primary level i.e. till Class VIII were also included
in the scheme
● For primary students-300 calories and 8-12 gm protein and for upper primary students-
700 calories and 20 gm protein has been kept as norm
National Nutrition Mission

● Flagship programme which is executed with Ministry of Women and Child
Development (WCD) as nodal ministry along with other ministries like Ministry of
Drinking Water and Sanitation, Ministry of Health and Family Welfare etc. which
ensures convergence with various programmes
● Implemented in three phases, has target to reduce stunting, undernutrition, and low
birth weight by 2 per cent per annum, and anaemia among children (of 6-59 months)
and women/adolescent girls (15- 49 years) by 3 percent annually
Salient features of India’s National Nutritional Mission include the following -

● NNM as an apex body will monitor, supervise, fix targets and guide nutrition related
interventions through life cycle concept
● Mapping of various schemes contributing under malnutrition
● ICT (Information and Communication Technology) based real time monitoring system
● Incentivizing states/UTs for meeting targets
● Incentivizing Anganwadi Workers (AWW) for using IT based tools and eliminating need
for registers
● Measurement of height of children at Anganwadi Centres
● Social Audits to track the health progress of the children
● Setting-up Nutrition Resource Centres
International Year of Millets (IYOM 2023)

● A MoU has been signed between Department of Agriculture and Farmers Welfare and
National Agricultural Cooperative Marketing Federation of India Limited
(NAFED) for promoting millets under International Year of Millets 2023
● Millets are small-seeded grasses that are often called Nutri-cereals
● Grown primarily on marginal lands in dry areas in temperate, subtropical and
tropical regions
● Millets which are commonly available in India are- Sorghum (jowar), pearl millet (Bajra),
finger millet (Ragi), Little millet (kutki), Proso millet (cheena) and other millets
● Millets are staple crops adapted to dry land agro-ecologies of arid and semi-arid
tropics
● In India, millets are produced in most of the states characterized by low to moderate
precipitation (200–800 mm rainfall)

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● Indian Government, under Sub Mission on National Food Security Mission

(NFSM) -Nutri-cereals, is creating awareness among farmers for Nutri Cereals
(Millets) such as ragi, sorghum, bajra and small millets through
demonstration and training
Benefits of Millet
● Nutritionally Rich
○ Superior to wheat and rice owing to their higher levels of protein
○ Dietary fibre content of millet is also higher compared to some staple
cereals
○ Millets also exhibit anti-inflammatory and antioxidant properties
● Climate Resilient
○ Millets are backbone for dry land agriculture. They are hardy, resilient
crops that have low carbon and water footprint, can withstand high
temperatures, grow on poor soils with little or no external inputs and are thus
termed as ‘miracle grains’ or ‘crops of future’
○ In times of climate change, they are most secure crops to small farmers as they
are hardiest, most resilient and climate adaptable crops in harsh, hot
(up to 50 degrees Celsius) and drought environments
● Health Benefits
○ Millet grains are rich sources of nutrients like carbohydrates, protein, dietary
fibre, and good-quality fat
○ Millets have substantially higher amounts of minerals like calcium,
potassium, magnesium, iron, manganese, zinc and B complex vitamins, making
them preferable choice over cereal grains
○ Millets can also help tackle health challenges such as obesity, diabetes
and lifestyle problems as they are gluten-free, have low glycemic index and
are high in dietary fibre and antioxidants
India’s food security stats

India slipped six positions on Global Hunger Index 2022 to take 107th position out
of 121 countries ranked
● India’s Rank: Fallen to 107th position in Global Hunger Index (GHI) 2022, out of
121 countries, from its 2021 position of 101st
● India’s GHI Score: With a score of 29.1, India has a level of hunger that is serious.
India has been ranked behind all south Asian countries except war-torn
Afghanistan
● Child Wasting: India’s child wasting rate (low weight for height), at 19.3%, is worse
than levels recorded in 2014 (15.1%) and even 2000 (17.15%)
o Highest for any country in world and drives up region’s average owing to
India’s large population
● Undernourishment: Prevalence of undernourishment has also risen in country from
14.6% in 2018-2020 to 16.3% in 2019-2021
o This translates into 224.3 million people in India considered
undernourished out of total 828 million people undernourished globally
● Child Stunting: India has shown improvement in child stunting. It has declined
from 38.7% to 35.5% between 2014 and 2022

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● Child mortality: Child mortality has also dropped from 4.6% to 3.3% between
2014 and 2022
E- Technology in the Aid of Farmers

● Electronic-technology (E-technology) is an umbrella term that encompasses all ways of
transmission, including electronic devices, satellite communication, mobile, services, and
applications that employ technology to transmit information
● "e-agriculture" refers to use of information and communication technology in
agricultural development. Simply said, it is method of utilising ICT in agricultural domain
Significance of E-Agriculture
● Improved decision-making by providing farmers with timely and appropriate
information on agro-inputs such as seeds, fertilisers, and insecticides
● Improve farmers' skills and productivity, as well as cost effectiveness, viability, and
sustainability
● Agricultural research, extension, and technology transfer will be enhanced
through E-technology
● It can make it easier to connect with government entities for better governance
● Information can be presented in local language via text, SMS, email, and audio/video
● Farmers now have ability to ask specific questions, share their thoughts,
experiences, and ideas
● To compete in global marketplaces that are complex and continuously changing
(avoiding falling behind the technology curve)
● Experts believe that implementing IT in agriculture will usher in new Green
Revolution in India by providing farmers with timely and cost-effective information
E-technology Initiatives
● e-NAM: It's a pan-India electronic trading portal that aims to link current APMCs and
other market yards in order to create unified national market for agricultural
commodities
● m-Kisan SMS Portal: Enables all government organisations in agriculture and allied
sectors to give information/services/advisories to farmers by SMS in their language,
preference of agricultural practices and location. Farmers can sign up for this portal by
calling Kisan Call Center or visiting the website. Registration is completely free. They
can use this SMS site to record their questions regarding weather, soil type, market
prospects and challenges, and so on
● AGMARKNET: Launched in 2000, an e-governance portal, facilitates nationwide
information network that gives data on prices, commodity arrivals, information from
agricultural produce markets and web-based dissemination to producers, consumers,
traders, and policymakers transparently and quickly
● Seednet: Seednet India Portal is national initiative of Union Ministry of Agriculture and
Farmers Welfare to provide information about quality seeds. Users can learn about
Indian seed industry, quality control, seed replacement rates, seed multiplication ratios,
breeder seeds, foundation seeds, and certified seeds, among other topics
● Green sim: IFFCO Kisan Sanchar Limited is in charge of implementing this scheme
(IKSL). Provides voice-based agricultural information in regional languages to empower
rural farmers. This service was launched in 2008

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● Kisan Call Centres (KCC): Kisan Call Centres (KCCs) were established in 2004
with goal of answering farmers' questions over the phone in their local dialect. Through
toll-free telephone lines, this Scheme distributes agriculture-related information to the
farming community
● e-Choupal: ITC Ltd.'s e-Choupal initiative aims to give farmers knowledge they need
to succeed. Also allows purchasers to come to farmers rather than having to transport
goods to market, where traders frequently manipulate market in order to cheat
farmers out of their fair share of the profits
● National e-Governance Plan in Agriculture (NeGP-A): Aims to achieve rapid
agricultural development in India by utilising ICT enabled multiple delivery channels
such as Internet, Government Offices, Touch Screen Kiosks, Krishi Vigyan Kendras,
Kisan Call Centers, Agri-Clinics, Common Service Centers, Mobile Phones (Broadcast,
IVRS, interactive messaging using unstructured Supplementary Service Data and Voice
Recognition) to ensure timely access to agriculture-related information for the
country's farmers
● India Digital Ecosystem of Agriculture (IDEA): Built by taking publicly available
data as existing in various schemes and linking them with digitized land records.
Provides information from running schemes like PM Kisan, soil health cards, national
crop insurance scheme PM Fasal Bima Yojna. It would serve as foundation to build
innovative agri-focused solutions leveraging emerging technologies. It will enable farmer
to realize higher income and better profitability through access to right information at
the right time, and from innovative services
● Sandesh Pathak: Application is developed jointly by C-DAC Mumbai, IITMadras, IIIT
Hyderabad, IIT Kharagpur, and C-DAC Thiruvananthapuram. Will enable SMS messages
to be read out loud, for benefit of farmers who may have difficulty in reading
● DBT Agri Portal:Unified Central Portal for Agriculture Schemes, designed and
hosted by National Informatics Centre. All the information and details of farmers can
be collected through this platform so that they can get benefit of central and state
government schemes
● eSagu: It is a tool for IT-based personalised agricultural extension systems. Aims to
improve farm productivity by delivering high quality personalised (farm-specific) agro-
expert advice in timely manner to each farm at farmer’s door-steps without farmer
asking question. Advice is provided on regular basis (typically once a week) from
sowing to harvesting which reduces cost of cultivation and increases farm productivity
as well as quality of agri-commodities. It was launched by IIIT Hyderabad with support
from Bharat Electronics Limited (BEL). The project was launched in Telangana in 2016
● Jio Agri (JioKrishi) Platform: Provides services to create data-driven farmer
ecosystem, enabling analysis of farmers’ specific soil conditions and irrigation needs and
connect them to experts as well as educational videos. Launched in 2020, pilot project
for this initiative was to be taken place at Jalna and Nashik (Maharashtra)
Drone Technology in Agriculture

● An agricultural drone is an unmanned aerial vehicle used to help optimize agricultural
operations, increase crop production, and monitor crop growth
● Use of drone in agriculture is helpful to farmers as it has some distinct advantages such
as:
○ High field capacity and efficiency, less turnaround time and other field
operational delays,

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○ Wastage reduction of pesticide and fertilizers due to high degree of

atomization,
○ Water saving due to ultra-low volume spraying technology in comparison to
traditional spraying methods,
○ Reduction in cost of spraying and fertilizer application in comparison to
conventional methods etc.
○ Reduction of human exposure to hazardous chemicals
● In India pilot studies with different approaches like use of remote sensing
technology including satellite data and drone based images especially for crop cutting
experiments planning have been conducted through Mahalanobis National Crop
Forecasting Centre (MNCFC)
● In 2022, Department of Agriculture & Farmers Welfare (DA&FW) has
released Standard Operating Procedures (SOPs) which provide concise
instructions for effective and safe operations of drones for pesticide and nutrient
application
● Following provisions have been made under guidelines of Sub-Mission on
Agricultural Mechanization (SMAM)
○ Financial assistance @ 100% of cost of agriculture drone up to a
maximum of Rs. 10 lakhs per drone is provided for purchase of drones by
institutes under Indian Council of Agricultural Research, Krishi Vigyan Kendras
(KVKs), State Agriculture Universities (SAUs), State and other Central
Government Agricultural Institutions/Departments and Public Sector
Undertakings (PSUs) of Government of India engaged in agricultural activities
○ In order to make available drone services to farmers on rental basis,
financial assistance @ 40% up to a maximum of Rs. 4.00 lakhs are provided
for purchase of drones by Custom Hiring Centers under Cooperative Society
of Farmers, FPOs and Rural entrepreneurs
● Recent Initiatives
○ In Feb 2022, Indian PM flagged off 100 Kisan drones in different cities and
towns of India to spray pesticides in farms across India
■ Kisan drone will have unmanned tank filled with insecticides
and nutrients
■ Drones are expected to have high capacity of 5 to 10kg
■ Drone will spray same amount of pesticide on about one acre of land in
just 15 minutes. It will save time, will require less effort and spraying
will be done uniformly
Space Technology in Agriculture

● Ministry of Agriculture and Farmers Welfare has been pro-active in using space
technology in agri-sector
● Department of Agriculture, Cooperation and Farmers Welfare established Centre,
called Mahalanobis National Crop Forecast Centre, in 2012, for
operationalisation of space technology developed in Indian Space Research
Organization, for crop production forecasting
○ Department has another centre called Soil and Land Use Survey of India,
which uses satellite data for soil resources mapping
● Currently, Department is using space technology for its various programmes/
areas, such as:

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○ Forecasting Agricultural Output using Space, Agro-meteorology and

Land-based Observations (FASAL) project
○ Coordinated programame on Horticulture Assessment and Management using
geoiNformatics (CHAMAN) project
○ National Agricultural Drought Assessment and Monitoring System (NADAMS)
○ Rice-Fallow Area Mapping and intensification
○ geo tagging of infrastructure
○ assets created under Rashtriya Krishi Vikas Yojana, and Crop Insurance
● Benefits:
○ Space technology helps getting fast and unbiased information about crop
situation in country
○ Provides digital data, which is amenable to various analysis. Because of its
synoptic view, it provides images of whole country in very short duration
○ Hence, this data can be used for various programmes, which need information
on crop type, crop area estimates, crop condition, crop damages, crop growth
etc
○ Space Technology can be used for mapping of ground water resources at high
resolution.
○ Space technology can be used for operationalization of Early Warning System
on weather patterns like rain and temperature for deciding crops to be sown,
irrigation, fertilizer application, spray of pesticides, etc. so as to facilitate
farmers as an informed cultivator.
○ Satellite Navigation systems (GAGAN and NAVIC) can be used for
precision farming and geotagging of resources.
● Developments: Department of Agriculture, Cooperation and Farmers Welfare had
launched KISAN [C(K)rop Insurance using Space technology and
geoInformatics] project in 2015
○ Envisages use of high-resolution remote sensing data for optimum crop cutting
experiment planning and improving yield estimation
Digital Agriculture
● Digital technologies include artificial intelligence, Internet of things, Cloud
computing, Blockchain, Nano Technology, and modern information and
communication technologies. Agricultural practices empowered by these digital
technologies are referred to as smart farming, digital agriculture, and precision
agriculture
● In Digital Agriculture, various types of data are used to build new methods for
planning, production, management, and sale of agricultural produce. They help farmers
make informed decisions based on authentic data and overall trends. When power of
agricultural technologies is combined with power of data, it can result in optimization
of resources and achieving better, sustainable results which include resource, time,
and cost efficiency, increased production, and lowering impact on the environment
● Applications of digital technology in agriculture include- remote sensing, soil sensors,
unmanned aerial surveying, weather information systems, and market analysis and
insights
● Countries like US and Israel have successfully adopted digital technologies in building
solutions to transform agriculture and many associated activities

35
Potential and Opportunities for Digital Agriculture in India:

● Agricultural practices have largely been conventional in India. However, after the
Green Revolution, we have been slowly moving towards mechanisation and
modernization of agriculture to increase production, efficiency, per capita
productivity, crop yield, and farm income. Digital technologies can aid these processes
● Agriculture sector in India is currently valued at USD 370 billion and is one of the
major contributors to Indian economy. Sector is already in growth mode but digital
technologies have potential to further accelerate the growth
● Government of India considers agriculture major contributor to vision of five trillion-
dollar economy. Digital technologies are expected to play important role in
realization of this vision as goal of doubling farmers' income. They surely have
potential to contribute to all major sources of growth within agriculture sector
including improvement in productivity, resource use efficiency, increase in cropping
intensity and diversification towards high-value crops
● Importance of digital technologies in achieving goals has also been recognized by
NITI Aayog which believes that in order to double farmers' income, we need to take
action in three categories: development initiatives; technology generation and
dissemination; and policies and reforms
● Committee on Doubling Farmers' Income appreciated role of digital technology,
which can play transformational role in modernizing and organising how rural India
performs its agricultural activities. It listed five possible components or modern
management of agriculture, Remote Sensing; Geographical Information System; Data
Analytics; Artificial Intelligence and Machine Learning; and Internet of Things
● India has successfully implemented many important digital initiatives in country
including Aadhaar, unified payments interface, Jan-Dhan Yojana and
government apps such as Cowin. All of these have contributed to establishing very
positive sentiment and belief among citizens of this country for things that are digital
in nature
● Also, with increasing adoption of smartphones, computers, and broadband
Internet connections in country and specifically rural households, we have an
informal digital eco-system in place which can be leveraged for reaching out to
farmers at large, delivering information and services, and even skilling them
Challenges for Digital Transformation of Agriculture in India:

● Small and marginal farmers with less than two hectares of land account for 86.2
percent of all farmers in India, even though they own just 47.3 percent of land
holdings. This makes collection of precision data difficult for various reasons including
variety and diversity of crops and inability to scientifically build, access, and
provide quality data
● Cost of digital technology may be unaffordable for most farmers in India. Hence,
there is need to bring down cost involved in entire exercise. While government has
most prominent part to play here, Public-Private Partnership {PPP} model could
work out well to benefit everyone involved
Government Initiatives towards Digital Transformation of Agriculture in India:

● Digital Agriculture Mission 2021-2025 : Aims to support and accelerate projects
based on new technologies, like AI, blockchain, remote sensing, geographical
information systems, and use of drones and robots

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● National e-Governance Plan in Agriculture (NeGPA): Aims to achieve rapid

development in India through use of Information and Communication Technology (ICT)
for timely access to agriculture related information for the farmers
● Central Agri Portal: Unified central portal for agricultural schemes across country
that helps farmers adopt modern farm machinery through government subsidies
● National Strategy on AI: Recognises agriculture as one of the priority sector areas
for implementation of AI driven solutions
● Kisan Portal; Kisan Suvidha app and eNAM are other major initiatives in this
direction
Limitations of E-Agriculture
● Lack of digital infrastructure, which includes internet access and affordability, as well as
lack of awareness and literacy among farmers about use and benefits of e-agriculture
● Digital divide is also a barrier to e-agriculture adoption
● Even when farmers have access to cell phones, they are hesitant to use them and may
instead hire middleman who might stifle communication
Steps that can be Taken for E- agriculture in India

Increasing Rural Accessibility
● In order to make villages more techno-savvy and environmentally sustainable,
government should develop and promote concept of smart villages in policy making and
administration
● When it comes to communication infrastructure, focus should be on cost-effective and
socially acceptable solutions that are accessible to the rural poor
Awareness-Building and Education

● Agriculture should be taught as a subject in school, and computer education should be
a key component of the Agriculture Education System.
Market networks
● In order to promote more equitable, timely, and collaborative access to markets for
small holders, creation of communication networks among participants in chain
(farmers, transporters, buyers, merchants, and so on) must be supported
● Government should implement policies that systematically capture local knowledge,
assure appropriate research agenda setting, and assist intermediary organizations in
their operations
Research and Development

● Researchers need ongoing training in how to use new digital technologies to better
interact and exchange knowledge in agriculture sector
● Academic and research data in agriculture, which is currently available in form of
journals and research papers, must be digitized in order to facilitate information flow
Research & Development in Agriculture

GM crop
● Genetic modification (GM) technology allows transfer of genes for specific traits
between species using laboratory techniques

37
● GM crops are plants that have been modified using genetic engineering to alter their
DNA sequences to provide some beneficial traits. GM crops were first
introduced in the USA in 1994 with Flavr Savr tomato, which had been genetically
modified to slow its ripening process, delaying softening and rotting
● Bt cotton is only GM crop that has been approved for commercial cultivation in 2002
in India. Two GM crops-Mustard and Brinjal, are pending commercial release
Benefits of GM crops
● For Crops: Enhanced taste and quality; Reduced maturation time; Increased nutrients,
yields, and stress tolerance; Improved resistance to disease, pests, and herbicide; New
products and growing techniques. Example: Bt cotton cultivated in India is resistant
to cotton bollworm
● For Society: Increased food and nutritional security for growing populations;
Increased income for farmers; Decreased poverty and Hunger
Policy framework for GM crops

● Genetic Engineering Appraisal Committee (GEAC) is a statutory body
constituted under ‘Rules for the Manufacture, Use, Import, Export and Storage of
Hazardous Microorganisms/Genetically Engineered Organisms or Cells, 1989’ notified
under the Environment (Protection) Act, 1986
○ Since 1989, GEAC under Environment Ministry has been responsible
for approving commercial cultivation of GM crops as well as
manufacture, import and selling of processed foods made from GM ingredients
● GM imports require approvals under two laws- Environment (Protection) Act, 1986
and Food Safety and Standards Act, 2006
● Acts and rules that regulate GM crops in India include:
○ Environment Protection Act, 1986 (EPA)
○ Biological Diversity Act, 2002
○ Plant Quarantine Order, 2003
○ GM policy under Foreign Trade Policy
○ Food Safety and Standards Act, 2006
○ Drugs and Cosmetics Rule (8th Amendment), 1988
Challenges/Issues of GM Crops
(i)Environment Concerns
● More than 80% of all GM crops grown worldwide have been engineered for herbicide
tolerance. As a result, the use of toxic herbicides, such as Roundup, has increased
manyfold since GMOs were first introduced.
● GM crops also are responsible for emergence of “superweeds” and “superbugs,”
which can only be killed with more toxic poisons
● Most GMOs are direct extension of chemical agriculture and are developed and
sold by world’s largest chemical companies. Long-term impacts of these GMOs are
unknown. Once released into environment, these novel organisms cannot be
recalled
● There can be an unintended transfer of transgenes through cross-pollination and
unknown effects on other organisms (e.g., soil microbes), and loss of flora and fauna
biodiversity

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(ii) Bio-Safety Concerns

● Risk of toxicity, due to nature of product or changes in metabolism and composition
of organisms resulting from gene transfer
● Newer proteins in transgenic crops from organisms, which have not been consumed as
foods, sometimes have the risk of these proteins becoming allergens
● Genes used for antibiotic resistance as selectable markers have also raised concerns
regarding transfer of such genes to microorganisms and thereby aggravate health
problems due to antibiotic resistance in disease-causing organisms
● Labelling is not mandatory in some countries (e.g. the United States), fuelling further
concerns
(iii) Adoption and Acceptance Concerns

● Public perception of GM foods is plagued by concerns about safety. Moreover, attitudes
towards GM crops tend to correlate with education levels and access to information
about technology, there is a concern that small and marginal farmers may be hesitant to
adopt GM crops
(iv)Ethical Concerns
● GM crops raise ethical concerns like violation of natural organisms’ intrinsic values by
transfer of genes; Tampering with nature by mixing genes among species etc
(v)Societal Concerns
● Adoption of GM crops may be skewed to interests of rich countries and might result
in exploitation of developing countries
● GM crops may have role to play in combatting global hunger, but merely increasing
crop production or nutritional value will not solve larger problem of inequity in
access to food
● Big farmers whose livelihoods depend on production of commercial crops rather than
food staples may be able to increase their income by growing GM crops-thus, further
widening income gaps among farmers
GM mustard
● Dhara Mustard Hybrid (DMH -11) was developed by team of scientists at Delhi
University
● Uses a system of genes from soil bacterium that makes mustard — generally a self-
pollinating plant — better suited to hybridisation than current methods
● Contains two alien genes (‘barnase’ and ‘barstar’) isolated from soil bacterium called
Bacillus amyloliquefaciens that enable breeding of high-yielding commercial mustard
hybrids
● On October 18, 2022, Environment Ministry’s Genetic Engineering
Appraisal Committee (GEAC) cleared proposal for commercial cultivation of
genetically modified (GM) mustard
● Advantage: India produces only 8.5-9 million tonnes(mt) of edible oil annually while it
imports 14-14.5 mt which entailed record foreign exchange outgo of USD 18.99 billion
in fiscal year ended March 31, 2022. Further, GM mustard would make India self-
reliant in oil production and help in saving forex

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○ Mustard varieties in India have narrow genetic base. Barnase-barstar system

enables breeding of hybrids from wider range of mustards, including those of
East European origin such as ‘Heera’ and ‘Donskaja’
National Initiative on Climate Resilient Agriculture (NICRA)

● National Innovations on Climate Resilient Agriculture (NICRA) is a network
project of Indian Council of Agricultural Research (ICAR) launched in February, 2011
● Project aims to enhance resilience of Indian agriculture to climate change and climate
vulnerability through strategic research and technology demonstration
● Research on adaptation and mitigation covers crops, livestock, fisheries and natural
resource management
● Project consists of four components viz. Strategic Research, Technology
Demonstration, Capacity Building and Sponsored/Competitive Grant
System Of Rice Intensification (SRI)

● System of Rice Intensification involves cultivating rice with as much organic manure as
possible, starting with young seedlings planted singly at wider spacing in square pattern;
and with intermittent irrigation that keeps soil moist but not inundated, and frequent
inter cultivation with weeder that actively aerates the soil
● SRI is not a standardized, fixed technological method
● It is rather a set of ideas, a methodology for comprehensively managing and
conserving resources by changing way that land, seeds, water, nutrients, and human
labor are used to increase productivity from small but well-tended number of
seeds
KRISHI VIGYAN KENDRAS (KVKs)

● KVK is an agricultural extension center in India and name means “farm science centre”.
First KVK was established in 1974 in Pondicherry and since then, KVKs have been
established in all states and number continues to grow
● Some of the responsibilities of KVKs include on-farm testing, frontline-demonstration,
capacity building, multi-sector support, and advisory services
Vertical Farming
● Vertical farming is slowly catching up in India
● It is practice of growing crops indoors on vertically stacked layers under artificial
conditions of light and temperature
● By using vertically stacked layers, farmers can produce much more food on same
amount of land (or even less)
● Requires delicate balance of artificial temperature, light, water and humidity control. If a
delicate balance is not maintained, it’s possible to lose an entire crop the way
traditional farm might in event of drought or flood
● In 1915, Gilbert Ellis Bailey coined the term vertical farming and wrote a book on it
but modern concept was proposed by Professor Dickson Despommier
Techniques of Vertical farming

● Hydroponics
○ Method of growing plants in a water-based, nutrient-rich solution

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○Basic advantages of this method is that it reduces soil-related cultivation

problems like soil borne insects, pests and diseases
● Aeroponics
○ Invention of aeroponics was motivated by NASA to find efficient way to grow
plants in space in 1990s
○ In this, plants are tied to support and remain suspended in air and roots are
sprayed with nutrient solution or mist
○ Requires very less space, very less water and no soil
● Aquaponics
○ The term is coined by combining two words: aquaculture, which refers to fish
farming, and hydroponics- technique of growing plants without soil, to create
symbiotic relationships between plants and the fish
○ Symbiosis is achieved as nutrient-rich waste from fish tanks serves as “fertigate”
to hydroponic production beds
Advantages of Vertical farming

● Utilises less water and space
● Vertical farms can produce all sorts of crops year-round with little dependence on
weather or climate
● Indoor farming does not allow access to wildlife, eliminating conflict between
farmers and native species
● Doesn’t expose farmers to hazards and diseases such as malaria, poisonous
chemicals, and other life-threatening challenges
● Prevents hazardous chemical runoff which helps in preventing environmental
pollution and related human-health hazards
● Allows farming in desert areas, solving the problem of food shortages there
● Eliminates need for chemical pesticides as farming is done in a controlled
environment which keeps out pests naturally
Agriculture Export
India is one of the largest producers of agriculture and food products in world. The
Government introduced comprehensive Agriculture Export Policy in
December 2018, with following objectives:
● To diversify our export basket, destinations and boost high value and value added
agricultural exports, including focus on perishables
● To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri
products exports
● To provide institutional mechanism for pursuing market access, tackling barriers and
dealing with sanitary and phytosanitary issues
● To strive to double India’s share in world agri exports by integrating with global value
chains
● Enable farmers to get benefit of export opportunities in overseas market
Trends in Agri Exports

● India’s agricultural exports achieved highest ever export in FY22 reaching US$
37.8 billion and it continued to perform well in FY23 with exports of US$ 26.8
billion during April- November 2022 backed by an effective agriculture export
policy

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○ In agriculture, several non-traditional commodities have led to export surge.

For instance, non-basmati rice and wheat have seen record levels of
exports
● Pro-active support of export promotion agencies including Export Inspection Council,
Plantation Boards, and Agricultural and Processed Food Products Export
Development Authority (APEDA), and export facilitating measures like online
issuance of certificates required for exports, aided growth of agricultural
exports
● To initiate agriculture exports from UTs of Jammu and Kashmir and Ladakh, APEDA
has linked Kashmir valley start-ups, new entrepreneurs, Farmer Producer
Organisations/farmer groups, and exporters of region with importers
Major Schemes & Initiatives to boost Agri exports

● Interest Equalisation Scheme: Formulated to give benefit in interest rates being
charged by banks to exporters on their pre- and post-shipment rupee export credits.
While extending scheme, from 1 October 2021 onwards, subvention rates have also
been reduced
● Remission of Duties and Taxes on Exported Products (RoDTEP) scheme:
Scheme seeks remission of Central, State and Local duties/taxes/levies at different
stages at Central, State, and local level, which are incurred in process of manufacturing
and distribution of exported products, but are currently not being refunded under any
other duty remission scheme
● Krishi Udan Scheme: Krishi Udan Scheme was launched in August 2020 on
international and national routes to assist farmers in transporting agricultural products
so that it improves their value realisation. Krishi Udan 2.0 was launched in
October 2021 enhancing existing provisions, mainly focusing on transporting
perishable food products from hilly areas, NorthEastern states, and tribal areas
● Trade Infrastructure for Export Scheme: Government has been implementing
Trade Infrastructure for Export Scheme since FY18 to assist Central and State
Government Agencies in creation of appropriate infrastructure for growth of exports
from States. Scheme provides financial assistance in form of grant-in-aid to
Central/State Government owned agencies for setting up or for up-
gradation of export infrastructure as per guidelines of Scheme
Challenges and Opportunities in Agri Exports

● Training & Skill development at farm level
○ Unregulated input (chemicals) usage at the farm level
○ Inadequate harvest and post harvest management affects quality and shelf life of
the produce
○ Consignments of India food exports sometimes get rejected due to
residue levels that are higher than Maximum Residue Limit (MRL) set
by importing nations
○ Lack of awareness among farmers regarding judicious and timely use
of chemicals has been major impediment
○ A few years back, EU nations reduced MRL of tricylazole from 1 ppm to 0.1
ppm in Basmati rice, but exporters could not get critical information on time
resulting in large-scale rejection of Basmati consignments

42
● Traceability to farm level is vital: In order to ensure desired quality of agri-

produce for exports, traceability to the farm level is vital
○ Effective traceability systems improve the ability to implement safety and
quality compliance by regularly monitoring production, processing and
distribution stages
○ Number of digital platforms have been developed for enabling the smooth
flow of business and ensuring transparency in the system
○ BasmatiNet, HortiNet Mango, TraceNet, MeatNet, and PeanutNet
are some major traceability systems serving farmers, farmer organizations and
exporters
● Extension of new technologies
○ Extension of new technologies and innovations at ground level need to be
intensified to raise high value, high yield quality products without export
rejections, almost nil chemicals and losses due to climatic conditions, pests etc
○ In this context, concept of 'Farm Factories' is new approach in which high-
value crops are grown in temperature, moisture and nutrition controlled
environments assuring high organic yield. Fruits and vegetables are best
suited for farm factories as they naturally use less water with higher
profitability as against cash and cereal crops
● Untapped potential
○ Spices have a major share of about 37 percent in total export value from
horticulture products, but there still lies untapped potential due to amazing
diversity in Indian spices
○ Spices Board has initiated steps to implement Entrepreneurship Development
Program for pushing export in ODOP (One District One Product) districts.
For first time, Kashmiri saffron is being exported to UAE
○ Ginger is being exported from ODOP districts of Karnataka, Sikkim, Assam,
Himachal Pradesh, Orissa and Manipur; benefitting thousands of farmers.
Cumin sourced from Gujarat and Rajasthan is gaining acceptance and popularity
in target countries
● Organic exports
○ Due to increasing health consciousness at global level, organic exports during
2020-21 were US dollar 1040 million as against US dollar 689 million in 2019-
20, registering a very impressive growth of nearly 51 percent
○ Organic products from India include oil cake/meals, oilseeds, cereals and
millets, spices and condiments, tea, medicinal plant products, dry fruits, sugar,
pulses, coffee etc
○ North Eastern Region leads in the production of organic products
followed by Uttarakhand, Madhya Pradesh, Rajasthan, Maharashtra and Goa
○ Experts have recommended creation of exclusive 'Organic Product Export
Zones' in these states and N-E region having common infrastructure for
processing, standardization, storage, logistics, and connectivity to ports and air
ports
● Transport and logistics issues: Connectivity of land locked production areas to
ports or terminals is stiff challenge. E.g. Bihar, Jharkhand, NE states and hilly regions like
Himachal Pradesh, Uttarakhand and J&K
○ Also, link roads from farms to main roads are underdeveloped in
most states Congestion at ports due to high waiting periods of

43
shipment. Most exporters reported about congestion at Jawaharlal Nehru

Port Trust (JNPT)
○ To address transport and logistics issues, Government of India has initiated
several new projects in recent times. India Railways 'Kisan Rail' is an
exclusive service primarily to enable farmers and producers to transport their
agricultural produce from rural areas to major towns and cities at an affordable
cost
○ To focus on transporting perishable food products, including horticulture,
fishery, livestock and processed products, from the Hilly Areas, North-Eastern
States and Tribal Areas, Krishi UDAN 2.0 version was launched in
October 2021
● International Dispute: India’s agricultural exports are under intense scrutiny in
World Trade Organization (WTO). In 2019, Australia, Brazil, and
Guatemala complained to WTO’s dispute settlement body that India was
implementing several subsidy schemes for promoting sugar exports
○ Complainants argued that by implementing these subsidy schemes,
government had violated rules of WTO’s Agreement on Agriculture
(AoA), which prohibit use of export subsidies
○ In December 2021, dispute settlement panel adjudicating dispute gave its ruling
against India
Miscellaneous
Agricultural Price Volatility
● Prices of agricultural commodities like onions, tomatoes, and pulses have recently
experienced significant price movements
● For instance, in some regions of nation, onion prices peaked around middle of October
2018, bringing to light ongoing price volatility of onion that nation experiences every
season
● Key reasons for severe and frequent price shocks are attributed by agriculture experts
to production fluctuations and changes in the nature of the demand
Food Inflation
● The condition of an increase in price index of a necessary food item
● Food inflation based on Consumer Food Price Index (CFPI) climbed to 7.0 percent in
FY23 from 3.8 percent in FY22.
○ Major contributors of increased food inflation in India are vegetables, cereals,
milk and spices
○ Measures To Contain Inflation in Essential Food Commodities
according to Economic Survey 2022-23
Government keeps close watch on production and availability of essential commodities
through regular reviews by Inter-Ministerial Committee and Committee of Secretaries.
Following fiscal measures have been taken to bring down the prices of essential
commodities:
Essential Measures To Contain Inflation
Food
Commoditie
s

44
Cereals ● On 13 May 2022, wheat flour exports were prohibited in order to

prevent domestic surge in prices
● Central Government, w.e.f. 9 September 2022, imposed export
duty of 20 percent on rice, brown rice, and semi-milled as
well as wholly milled rice, except parboiled rice
Pulses ● Buffer stock of pulses has been maintained for price stabilisation
in 2020-21, 2021-22 and 2022-23. Calibrated release of pulses
from buffer stock will moderate the prices in market
● Import of tur and urad under Free Category was extended
until 31 March 2023
● Central Government, on 1 September 2022 decided to provide 1.5
million tonnes of chana to States and UTs at discounted rate
for distribution under various welfare schemes
Edible Oils ● Central government, on 24 May 2022, exempted customs

duty and AIDC on yearly import of 20 lakh metric tonne
each of crude soya bean and sunflower oil for years 2022-23 and
2023-24
● In a bid to cool down domestic prices of soya meal, Central
Government has notified an order under Essential Commodities
Act to declare ‘Soya Meal’ as Essential Commodity up to
30 June 2022, by amending Schedule of the Essential
Commodities Act, 1955
● Stock limits imposed on all edible oils and oilseeds, vide order dated
3 February 2022, were extended up to 31 December 2022, by
amending Removal of Licensing Requirements, Stock Limits and
Movement Restrictions on Specified Foodstuffs Order, 2016
Reasons for food inflation include

● Shortage of food supply: Food supply shortage has been a result of various factors
like:
○ Excessive use of pesticides and fertilizers have led to decline in soil
fertility
○ As government continuously hikes MSP on rice and wheat, more and more
farmers shift from vegetables/pulses to cereal production leading to a
decline in production of vegetables and pulses and pushes their prices up
○ Huge price difference between wholesale and retail prices is often due to poor
functioning of APMCs mandis (presence of intermediaries, license fees, etc.)
○ Uncertain monsoonal patterns disrupt supply chains
○ Poor transportation facilities also result in delay in transportation of produce
from farms to retail market
○ Cases of hoarding have been reported with respect to agricultural
commodities which in turn leads to artificial inflation
● High Demand: As more and more Indians move into middle-income wage
bracket, demand for high value crops like rice, wheat, and sugarcane
increases. On the other hand, production is not sufficient to meet rising
demands of growing population. This also leads to food inflation

45
Measures taken by the government to curb food Inflation

● Minimum Export Price (MEP): MEP is the price below which commodities cannot
be exported from India. When there is inflation, government will increase MEP to
discourage exports from India
● Open Market Sale Scheme (OMSS): Food Corporation of India sells surplus
stocks of wheat and rice under Open Market Sale Scheme (Domestic) at pre-
determined prices through e-auction in open market from time to time to enhance
the supply of food grains, especially wheat during lean season and thereby
moderate open market prices specially in deficit regions
● Operation Greens: Scheme to promote Farmer Producers Organizations, agri-
logistics, processing facilities and professional management. Launched by the Food
Processing Ministry with NAFED as nodal agency to stabilize supply of Tomato,
Onion, and Potato (TOP) crops and to ensure availability of TOP crops
throughout country round the year without price volatility
● Agriculture Infrastructure Fund (AIF): Financing facility operational from year
2020-21 to 2032-33 for creation of post-harvest management infrastructure
and community farm assets, with benefits including 3 percent interest subvention
and credit guarantee support
● Essential Commodities Act (ECA), 1955: Essential Commodities Act has been
used by government to regulate production, supply, and distribution of whole host of
commodities that it declares ‘essential’ (e.g., foodgrains, pulses, oilseeds, jute, fertilizers,
seeds, petrol, diesel, kerosene, etc.) to make them available to consumers at fair price

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AGRICULTURE PART III
Allied Sectors in Agriculture

● Allied sectors in India are those that support and complement primary sectors, such as
agriculture, forestry, and fisheries
● These sectors play significant role in country's economy and contribute to overall
development of country
● Allied sectors of India are gradually becoming sectors of buoyant growth and potential
source of better farm incomes
Animal Husbandry
● Branch of agriculture that deals with breeding, rearing, and management of
livestock
● In India, animal husbandry is important sector that contributes significantly to country's
agricultural and rural economy
● Sector has seen considerable growth in recent years, with government implementing
various schemes and initiatives to promote animal husbandry and increase income of
farmers
● Government has launched several initiatives such as Rashtriya Gokul Mission,
National Kamdhenu Breeding Centre, and National Livestock Mission, which
aim to improve productivity and health of livestock and increase income of farmers.
These initiatives have led to increase in milk production, meat production, and overall
productivity of livestock
STATUS OF LIVESTOCK IN INDIA

● From 2014-15 to 2022-23, the livestock sector grew at an impressive Compound
Annual Growth Rate (CAGR) of 7.38 per cent at constant prices(Economic Survey
2023-24).
● Animal Husbandry Departments of States/UTs were entrusted to conduct field
operations. In 20th Livestock Census, data were collected and scrutinised mostly by
para-veterinarians and veterinarians
● The 20th Livestock Census was carried out in about 6.6 lakhs villages and 89 thousand
urban wards across country covering more than 27 Crores of Households and Non-
Households
● As per 20th Livestock Census, India is:
o World’s highest livestock owner at: 535.78 million
o First in the total buffalo population in the world: 109.85 million buffaloes
o Second in the population of goats: 148.88 million goats
o Second largest poultry market in the world
o Second largest producer of fish and also second largest aquaculture nation in the
world
o Third in the population of sheep: 74.26 million
o Fifth in in the population of ducks and chicken: 851.81 million
o Tenth in camel population in the world: 2.5 lakhs
SIGNIFICANCE OF LIVESTOCK TO INDIAN ECONOMY

The importance of livestock in Indian agricultural economy has been well recognized next
to land and irrigation, livestock is single largest asset in rural India due to following benefits:
● Income: Livestock is a source of income for many families in India as cows and
buffaloes milk provide regular income to livestock farmers through sale of milk. Animals
also serve as moving banks and assets which provide economic security to the owners
● Employment: Huge population in India is illiterate and unskilled so they depend upon
agriculture for their livelihoods. Landless people depend upon livestock for income
earning opportunities by using livestock for labour during non-agricultural season
● Food: Livestock products such as milk, meat and eggs are an important source of
animal protein

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● Social Security: In an agricultural dominated country and minimal income earning

opportunities those with livestock options gives them additional social security in
challenging economic situation
● Cultural aspects: Animals are used for various socio religious functions. Cows for
house warming ceremonies; bucks and chicken for sacrifice during festive seasons; Bulls
and Cows are worshipped during various religious functions
● Energy/Power: Livestock provides power/energy for ploughing of agricultural fields
and transportation animals like oxen, bullock, male buffaloes, camel, horse and donkey
are used for this purpose
● Fuel: Animal dung/faeces act as fuel for cooking as well as nourishing the soil- For
cooking in form of dung cake and gobar gas and for crop production in the form of
dung as manure or fertilizer
● Clothing: Livestock also helps in protecting humans from cold weather conditions in
form of leather and wool
● Raw materials: Large number of raw materials are extracted/generated from dead or
slaughtered animals in form of bones, horns, hoof, animal fat (tallow from cattle, lard
from pig) and numerous products are also used for pharmaceutical and industrial use
● Land Management: In areas prone to wild fires, goats and sheep are set to graze on
dry vegetation which removes combustible material and reduces the risk of fires
MAJOR CHALLENGES
● Low Productivity: India possesses the highest livestock population and is number one
in milk production in the world. However, productivity, particularly of ruminants, has
been extremely low, turning this precious asset of the poor into a liability
o Over 60 percent of rural households maintain large ruminants, mostly for milk
and partly for bullock power
● High economic losses due to animal diseases: With improvement in quality of
livestock through cross-breeding program, susceptibility of these livestock to various
diseases including exotic diseases has increased
● Inadequate infrastructure and human resources for support services: As on
31st March 2017, number of veterinary institutions stood at 65242
o As per recommendation of National Commission on Agriculture (NCA)-1976,
One Veterinary Institution is to be provided for every 5,000 cattle units (one
cattle unit =1 cow / 1 buffalo /10 sheep / 10 goats / 5 pigs / 100 poultry) to
ensure proper veterinary health care
● Shortage of feed and fodder: India with only 2.29 percent of land area of world is
maintaining nearly 17 percent of world human population and 10.70 percent of
livestock (more than 535.82 million heads) creating a huge pressure on land, water and
other resources
● Inadequate public institution support: The sector has received only about 12
percent of total public expenditure on agriculture and allied sectors, which is
disproportionately lesser than its contribution to agricultural GDP. The sector has
been neglected by financial institutions
● Inadequate processing and value addition: Meat industry is one of the most
important parts of food processing industry. Processing rate of buffalo meat is around
21 percent and 6 percent for poultry. Major reason for inadequate processing and value
addition in meat products is lack of necessary infrastructure
● Issues in marketing of livestock and livestock products: Lack of access to
markets may act as disincentive to farmers to adopt improved technologies and quality
inputs. Currently, livestock market does not undergo a uniform change
● Lack of attention of small ruminates: Most of the small ruminants which are
dependent on free grazing without any investment on supplementary feeding and health
care, do not make significant contribution to the income
o While demand for meat is expected to grow high during next two decades,
present system of unsustainable husbandry practices highlights status of these
species deprived of technological and managerial support services
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● Inadequate attention towards extension services: Delivery of livestock services

has three components viz. providing technical services to animals; Supplying technical
inputs and educating livestock farmers
o Providing services to animals involves vaccination, deworming, breeding and
disease management services for which technical inputs such as vaccines,
medicines, semen, AI guns, syringes and needles etc., have to be supplied
o Livestock farmers have no option but to depend on vets or para-vets for all the
above services and, to some extent, supply of technical inputs
Allied Sectors in India

DAIRY
● Dairy sector is the most critical
component of livestock sector,
employing more than eight crore
farmers directly, and is most
prominent agrarian product
● India has been leading producer and
consumer of dairy products
worldwide since 1998 with sustained
growth in availability of milk and milk
products
● India is largest producer of milk in
world, contributing 23% of global
milk production
● Dairy activities form essential part of
rural Indian economy, serving as an
important source of employment and income
● India also has largest bovine population in world
Facts and Data
● Dairy market in India reached INR 14,899.8 billion in 2022
● Looking forward, IMARC Group expects market to reach INR 30,840 billion by 2027,
exhibiting at CAGR of 14.98% during 2022-2027
EGG PRODUCTION
● As per Economic Survey 2022-23,
India ranks third in egg production in
the world
● As per Basic Animal Husbandry
Statistics 2022, total egg production in
the country was 129.60 billion numbers
and it is an increase by 6.19% than previous
year
o The per capita availability of
eggs is 95 eggs per annum
o Top five egg producing States
are Andhra Pradesh (20.41%),
Tamil Nadu (16.08%), Telangana (12.86%), West Bengal (8.84%) and
Karnataka (6.38%) and these States together contribute 64.56% of total egg
production in the country.
MEAT PRODUCTION
● As per Economic Survey 2022-23, India ranks eighth in meat production in the
world
● As per Basic Animal Husbandry Statistics 2022, total meat production in country was
9.29 million tonnes. It had increased by 5.62% as compared to previous year (2022)

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o Meat production from poultry was

4.78 million tonnes, contributing
51.44% of total production
o Growth of poultry meat production
has increased by 6.86% over
previous year
o Top five meat producing States are
Maharashtra (12.25%), Uttar Pradesh
(12.14%), West Bengal (11.63%),
Andhra Pradesh (11.04%) and
Telangana (10.82%). They together
contribute 57.86% of total meat
production in country
APICULTURE
● Apiculture, also known as beekeeping, is practice of maintaining bee colonies and
harvesting their products, such as honey, beeswax, and pollen
● In India, apiculture is an important sector that contributes significantly to country's
agricultural and rural economy
● In India beekeeping has been mainly forest based
● Apiculture market is estimated to register CAGR of 4.3% during period 2020–25, with
Asia–Pacific as dominant producer
● As per report by IMARC, Indian apiculture market size is expected to reach value of Rs
33,128 million by 2024, expanding at a CAGR of nearly 12% by 2024
● India is sixth major natural honey exporting country
Production
● India is world's sixth-largest producer of honey, with estimated annual production of
around 1,00,000 metric tonnes
● Major honey-producing states in India are Uttar Pradesh, Punjab, Haryana, Himachal
Pradesh, and Rajasthan
Challenges
● Apiculture sector in India faces several challenges, such as lack of training and technical
know-how, poor quality equipment, lack of access to credit, and diseases affecting bee
colonies
● Also faces stiff competition from cheap imported honey, which affects domestic market
Initiatives
● To address challenges, government has launched several initiatives to promote
apiculture and increase income of beekeepers. Some of these initiatives include:
National Bee Board, Honey Mission etc
Capacity building
● Government provides training and capacity building programs to beekeepers to
improve their technical knowledge and skills
Major export destinations

● Major export destinations were USA, Saudi Arabia, Canada, and Qatar
● Demand for organic honey in international market could be leveraged for promoting
organic beekeeping guidelines
SERICULTURE
● Sericulture is an Agro-based industry, involves rearing silkworms for production of raw
silk, which is yarn obtained out of cocoons spun by certain species of insects

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● India is world's second-largest producer of silk, and sector provides employment

opportunities to millions of people, especially in rural areas
● Sericulture activities in India are spread across 52,360 villages. India produces four
types of natural silks; Mulberry, Eri, Tasar and Muga
● During April-December 2021, India produced 26,587 metric tonnes (MT) of silk
● Total silk production in India during 2021-2022 was 34,923 MT, an increase of 3.4% Y-
o-Y over the previous year (33,770 MT)
● This production is around 88.4% of targeted annual production for year 2021-22
● Government has launched several schemes, such as Integrated Sericulture
Development Project, to promote sericulture and increase income of farmers
FISHERIES
● Fisheries and Aquaculture constitute important economic activity, with vast potential
for sustainably harvesting wide variety of inland and marine fisheries resources in
country
● India has vast coastline of over 7500 km and extensive network of rivers, canals, and
other water bodies, making it one of the world's leading producers of fish
● Fisheries are important source of food, nutrition, employment and income in India
● Annual average growth rate of fisheries sector has been about 7 percent since 2016-17
and has a share of about 6.7 percent in total agriculture GVA (Economic Survey
2022-23)
Facts and Data

● India is 3rd largest fish producing and 2nd largest aquaculture nation in world
● India has more than 10% of global biodiversity in terms of fish and shellfish species
● It provides important food and nutritional resources, especially for the rural economies
Fisheries as livelihood
● Many of these fisheries are conducted by rural poor, often for subsistence and small-
scale economic security
● Fisheries provide livelihood to about 25 million fishers and fish farmers at primary level
and twice number along the value chain
o This role is particularly important in poverty prevention for marginalized
populations including ethnic minorities, the rural poor, and women
Fisheries Sector Challenges

● Inadequate infrastructure: Especially fishing harbours, landing centres, cold chain
and distribution systems, poor processing and value addition, wastage, traceability and
certification, non-availability of skilled manpower etc
● Technological lag and financial constraints: These are major bottlenecks in the
delayed take off of the deep-sea fishing industry in India
● Overexploitation: Unsustainable fishing poses serious threat to fish and aquatic
biodiversity and to livelihoods of people in riverine and lake communities
o Major causes are excessive food demands, market pressures, fishing gear
technology development, weak or lack of appropriate management approaches
and policies, accidental by-catches, and unregulated aquarium trade in wild
species
● Climate change: As fishes cannot control their body temperature, increasing or
decreasing water temperatures impact growth, reproduction and ultimately survival of
the fisheries
● Invasive species: Background of exotic or alien invasive species is one of the greatest
global threats to native fish communities and their freshwater ecosystems
o Habitat modification, fragmentation, and destruction: By damming,
agriculture practices, urban development, rivers dredging and geomorphological
modifications etc

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Horticulture
● Horticulture is a science of and art of gardening for fruits, flowers, vegetables and
ornamental plants
● Indian horticulture sector contributes about 33% to agriculture Gross Value
Added (GVA) making very significant contribution to Indian economy
● Apart from ensuring nutritional security of nation, provides alternate rural
employment opportunities, diversification in farm activities, and enhanced income
to farmers
● India is currently producing about 320.48 million tons of horticulture produce
which has surpassed food grain production, that too from much less area (25.66 million
Ha. for horticulture against 127.6 M. ha. for food grains). Productivity of horticulture
crops is much higher compared to productivity of food grains (12.49 tones/ha against
2.23 tones/ha.)
● India has emerged as world leader in production of variety of fruits like mango,
banana, guava, papaya, sapota, pomegranate, Lime & aonla and is second
largest producer of fruits and vegetables
CLASSIFICATION
● Pomology: Deals with the Planting, harvesting, storing, processing, and marketing
of fruit and nut crops
● Olericulture: Related with Producing and marketing vegetables
● Arboriculture: Study, selection and care of individual trees, shrubs or other perennial
woody plants
● Ornamental Horticulture: It has two divisions-
o Floriculture: Production, use and marketing of floral crops
o Landscape Horticulture: Production and marketing of plants used to
beautify outdoor environment
IMPORTANCE OF HORTICULTURE
● Horticulture crops are source of variability in farm produce and diets
● Are a source of nutrients, vitamins, minerals, flavour, aroma, dietary fibres, etc
● Contain health benefiting compounds and medicines
● Have aesthetic value and protect the environment
● Comparative production per unit area of horticultural crops is higher than field crops,
e.g., paddy crop gives maximum yield of only 30 q/ha, while banana crop gives 300–450
q/ha and grapes 90–150 q/ha
● Fruit and plantation crops can be cultivated in places where slope of land is uneven or
undulating
● Mango and cashew nut are cultivated on large scale in hilly and hill back area of Konkan
region
● Crops are useful for cultivation in wasteland or poor quality soil
● Are of high value, labour intensive and generate employment throughout the year
● Horticultural produce serves as raw material for various industries, such as processing,
pharmaceutical, perfumery and cosmetics, chemical, confectionery, oils and paints, etc
● Have national and international demand and are good source of foreign exchange
MAJOR PROBLEMS IN HORTICULTURE

● Low productivity and poor quality planting materials
● Low disease diagnostic appliances
● Poor orchard management
● Low capital- small farmer — holdings
● Poor technological applications
● Poor post-harvest handling, industrial base
● Poor quality control measures and laboratories
● Marketing network modernization
● Poor data base and electronic use
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● Poor infrastructure, particularly cold chain management infrastructure

● Horticulture crop production is highly specialized
● Inadequate skilled manpower to meet diverse requirements of horticulture
development
● Inadequate facilities for hands on training not available
● Poor economic conditions of the farmers has made it almost impossible to
contribute his/her share in monetary terms in the development of horticulture. On the
other hand some of the horticultural crops have long gestation periods and our farmers
are unable to make proper attention during these gestation periods and many orchards
fail to develop fully
● Development of horticulture in hill state requires higher degree of capital investment in
initial stages of establishment
GOVERNMENT INITIATIVES
● Central Institute of Horticulture (CIH): Central Institute of Horticulture was
established in 2005-06 by Department of Agriculture, Cooperation & Farmers Welfare.
It has a vision & mission for development of Horticulture Sector in North East
Region (NER). It has been putting its efforts and footprints in exponential
development of horticulture sector through its variety of programmes. Institute has
played vital role in effective dissemination of technology through technology
demonstrations, imparting training to farmers and officials of NER, production of quality
planting material, protected cultivation of flowers & vegetables, organic farming, Post-
harvest management, and skill development programmes etc
● Mission for Integrated Development of Horticulture (MIDH): Mission for
Integrated Development of Horticulture (MIDH) is Centrally Sponsored Scheme for
holistic growth of horticulture sector covering fruits, vegetables, root & tuber crops,
mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa and bamboo.
Under MIDH, Government of India (GOI) contributes 60% of total outlay for
developmental programmes in all states except states in North East and
Himalayas, 40% share is contributed by State Governments. In case of North
Eastern States and Himalayan States, GOI contributes 90%. It has five schemes under
it:
o National Horticulture Mission (NHM)
o Horticulture Mission for North East and Himalayan States (HMNEH)
o National Horticulture Board (NHB)
o Coconut Development Board (CDB) &
o Central Institute of Horticulture (CIH), Nagaland
● National Horticulture Board (NHB): was set up by Government of India in 1984
as an Autonomous organization under administrative control of Ministry of Agriculture
and Farmers Welfare. Broad aims and objectives of Board are to develop production
clusters/hubs for integrated Hi-tech commercial horticulture, development of Post-
harvest and cold chain infrastructure, ensuring availability of quality planting material
and to promote adoption of new technologies/tools/ techniques for Hi-tech
commercial horticulture etc
● CSIR Floriculture Mission: was launched in 2021. Under the mission, available
knowledgebase in CSIR Institutes will be utilized and leveraged to help Indian farmers
and industry re-position themselves to meet import requirements. Mission aims to
focus on commercial floral crops, seasonal/annual crops, cultivation of
flower crops for honey bee rearing and wild ornaments. Mission is expected to
create opportunities for entrepreneurship development in floriculture.
Under the mission, CSIR will lead to infuse latest technologies in field of floriculture
TRENDS IN HORTICULTURE
● Fruit and vegetables: According to FAO (2019), India is largest producer of ginger
and okra amongst vegetables and ranks second in production of potatoes, onions,
cauliflowers, brinjal, cabbages, etc. Amongst fruits, India ranks first in
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production of Bananas (26.08%), Papayas (44.05%) and Mangoes (including mangosteens

and guavas) (45.89%)
India's share in global market is still nearly 1% only, there is increasing acceptance of
horticulture produce from the country. This has occurred due to concurrent
developments in areas of state-of-the-art cold chain infrastructure and quality assurance
measures. Apart from large investment pumped in by private sector, public sector has
also taken initiatives and with APEDA's assistance several Centres for Perishable Cargoes
and integrated post-harvest handling facilities have been set up in country. Capacity
building initiatives at farmers, processors and exporters' levels has also
contributed towards this effort
● Flowers: As per National Horticulture Database (Second Advance Estimates)
published by National Horticulture Board, during 2019-20 the area under
floriculture production in India was 305 thousand hectares with production of
2301 thousand tonnes loose flowers and 762 thousand tonnes cut flowers.
Indian floriculture industry comprises flowers such as Rose, Tuberose,
Glads, Anthurium, Carnations, Marigold etc. Cultivation is undertaken in both
open farm conditions as well as state-of-the-art poly and greenhouses
WAY FORWARD
● Horticulture must revolve around research and development, matching pace with the
latest technologies and innovations, and assisting institutional changes
● Ensure quality planting material of Horticulture crops
● Reduction in losses through the development of suitable infrastructure and creation of
awareness
● Establishment of market system having forward and backward linkage
● Establishment of a system to service all kinds of Horticulture requirements
● Development of quality testing laboratory
● Application of information technology in Horticulture
Schemes related to Livestock and Allied Sectors

RASHTRIYA GOKUL MISSION (RGM)
Background
● Rashtriya Gokul Mission (RGM) has been implemented for development and
conservation of indigenous bovine breeds since December 2014
● Scheme is important in enhancing milk production and productivity of bovines to meet
growing demand of milk and making dairying more remunerative to rural farmers of
country
● Scheme is also continued under umbrella scheme Rashtriya Pashudhan Vikas Yojna
from 2021 to 2026 with a budget outlay of Rs.2400 crore
Objectives
● To enhance productivity of bovines and increase milk production in a sustainable
manner using advanced technologies
● To propagate use of high genetic merit bulls for breeding purposes
● To enhance Artificial insemination coverage through strengthening breeding network
and delivery of Artificial insemination services at farmers doorstep
● To promote indigenous cattle & buffalo rearing and conservation in a scientific and
holistic manner
Benefits
● RGM will result in enhanced productivity and benefit of programme, percolating to all
cattle and buffaloes of India especially with small and marginal farmers
● Will also benefit women in particular since over 70% of work involved in livestock
farming is undertaken by women

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NATIONAL LIVESTOCK MISSION

● Focus is on entrepreneurship development and breed improvement in poultry, sheep,
goat and piggery including feed and fodder development
● National Livestock Mission (NLM) scheme has been restructured for 2021-22 to 2025-
26; Focuses on entrepreneurship development and breed improvement in poultry,
sheep, goat and piggery, including feed and fodder development
Scheme is implemented with following three Sub-Missions:
Sub-Mission on Breed Development of Livestock & Poultry

● The sub-mission proposes to bring sharp focus on entrepreneurship development and
breed improvement in poultry, sheep, goat and piggery by providing incentivization to
individual, FPOs, SHGs, Section 8 companies for entrepreneurship development and
also to State Government for breed improvement infrastructure
Sub-Mission on Feed and Fodder development

● Aims towards strengthening of fodder seed chain to improve availability of certified
fodder seed required for fodder production and encouraging entrepreneurs for
establishment of fodder Block/Hey Bailing/Silage Making Units through incentivisation
Sub-Mission on Extension and Innovation

● Aims to incentivize Institutes, Universities, Organizations carrying out research and
development related to sheep, goat, pig and feed and fodder sector, extension
activities, livestock insurance and innovation
LIVESTOCK HEALTH AND DISEASE CONTROL

Objectives
● To implement Critical Animal disease control programme to eradicate PPR by 2030 by
vaccinating all sheep and goats and to control Classical Swine Fever (CSF) by
vaccinating entire pig population
● To provide veterinary services at farmers’ doorstep through Mobile Veterinary Units
(MVUs)
● To assist States/UTs for Control of Animal Disease (ASCAD) by prevention & control
of important livestock and poultry diseases prevalent in different States / UTs as per
the State /UT’s priorities
Significance
● Implementation of scheme will ultimately lead to prevention & control, subsequently
eradicating diseases, increased access to veterinary services, higher productivity from
animals, boosting up of trade in livestock and poultry, in livestock and poultry products
and improving socio- economic status of livestock and poultry farmers
NATIONAL PROGRAMME FOR DAIRY DEVELOPMENT (NPDD)

● Aims to enhance quality of milk and milk products and increase share of organised milk
procurement. The scheme has two components
Component 'A'
● Focuses towards creating/strengthening of infrastructure for quality milk testing
equipment as well as primary chilling facilities for State Cooperative Dairy Federations/
District Cooperative Milk Producers’ Union/SHG run private dairy/Milk Producer
Companies/Farmer Producer Organisations
● Will be implemented across country for period of five year from 2021-22 to 2025-26
Component 'B' (Dairying Through Cooperatives)

● Provides financial assistance from Japan International Cooperation Agency (JICA) as per
project agreement already signed with them

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● An externally aided project, envisaged to be implemented during period from 2021-22

to 2025-26 on pilot basis in Uttar Pradesh and Bihar initially with objective of creation
of necessary dairy infrastructure for purpose of providing market linkages for produce
in villages and for strengthening of capacity building of stake-holding institutions from
village to State level
DAIRY ENTREPRENEURSHIP DEVELOPMENT SCHEME (DEDS)

● Government revamped Venture Capital Scheme for Dairy and Poultry in 2010 to Dairy
Entrepreneurship Development Scheme (DEDS)
● Came into effect in September 2010
● Department of Animal Husbandry, Dairying and Fisheries and the National Bank for
Agriculture and Rural Development (NABARD) is implementing the DEDS
Objectives of DEDS
● To promote establishing modern dairy farms for milk production
● To upgrade traditional and quality technology to handle milk commercially
● To encourage development of modern dairy farms and produce pure milk
● To encourage heifer calf rearing, thus, conserving good breeding stock
● To provide infrastructure and generate self-employment for the unorganised sector
● To promote milk products’ processing and milk production for providing quality milk
products
● To bring structural changes in the unorganised sector to start initial milk processing at
the village level
ANIMAL HUSBANDRY STATISTICS (AHS)

● Animal Husbandry Statistics (AHS) Division of Department of Animal Husbandry &
Dairying (DAHD) is entrusted with generation of Animal Husbandry Statistics through
Centrally Sponsored Scheme “Livestock Census and Integrated Sample Survey” under
development programmes category with two components:
o Livestock Census (LC)
o Integrated Sample Survey (ISS)
● Implemented by: Department of Animal Husbandry and Dairying through State
Animal Husbandry Departments
● Work done under scheme:
o Conducts Livestock Census every five years.
o Conducts annual sample survey namely Integrated Sample Survey
o Publishes all India Livestock Report consisting of livestock population of major
species at National and States/UT level by use, sex and age
o Publishes breed-wise report based on latest Livestock Census consisting of
detail breed-wise livestock population at aggregate as well as segregated level
NATIONAL ANIMAL DISEASE CONTROL PROGRAMME

● National Animal Disease Control Programme (NADCP), which is largest ever
vaccination programme carried out either for human or animal vaccination in world, is
being implemented with aim to control Foot & Mouth Disease and Brucellosis by
completely vaccinating cattle, buffalo, sheep, goat and pig populations against Foot &
Mouth Disease and bovine female calves of 4-8 months of age against brucellosis by
2030
Facts and Data

● Vaccination under NADCP was started from 31st January, 2020 onwards and got
disrupted due to lockdown in country. FMD vaccination was restarted in May 2020 and
first round of FMD vaccination has been completed in 11 States
● During 2021-22, the second phase of vaccination commenced from July, 2021 and so
far, 5 crore animals have been vaccinated against FMD and 27.8 lakh animals vaccinated

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against brucellosis till December, 2021. Further, advisories and guidelines on

management of disease outbreak were sent to States/Uts
DAIRY PROCESSING & INFRASTRUCTURE DEVELOPMENT FUND (DIDF)

● Envisages providing loan assistance to State Dairy Federations, District Milk Unions,
Milk Producers Companies, Multi State Cooperatives and NDDB subsidiaries across
country who are termed as Eligible End Borrowers (EEBs)
● Funding period (2017-18 to 2019-20) of scheme to be revised to 2018-19 to 2022-23
and repayment period to be extended up to 2030-31 with spill over to first quarter of
the FY 2031-32
● Objectives: To modernize milk processing plants and machinery and to create
additional infrastructure for processing more milk
ANIMAL HUSBANDRY INFRASTRUCTURE DEVELOPMENT FUND (AHIDF)

● AHIDF has been approved for incentivizing investments by individual entrepreneurs,
private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8
companies to establish:
o Dairy processing and value addition infrastructure
o Meat processing and value addition infrastructure
o Animal Feed Plant
Government Contributions
● As part of ANB stimulus package, Animal Husbandry Infrastructure Development Fund
(AHIDF) worth Rs 15,000 crore was launched in 2020
● AHIDF facilitates investments in establishment of infrastructure for dairy and meat
processing and establishment of animal feed plants by FPOs, individual entrepreneurs,
MSME, Section 8 companies and private companies
● Under this scheme Central Government provides 3 percent interest subvention to
borrower and credit guarantee up to 25 percent of total borrowing
● As on 14 October 2022, a total of 116 projects have been approved under scheme
involving a project cost of ₹ 3731.4 crore
PRADHAN MANTRI MATSYA SAMPADA YOJANA

● Mission: Scheme to bring about Blue Revolution through sustainable and responsible
development of fisheries sector in India at estimated investment of Rs. 20,050 crores
for holistic development of fisheries sector including welfare of fishers
● Being implemented in all States and Union Territories for period of 5 years from 2020-
21 to 2024-25
● Designed to address critical gaps in fisheries value chain from fish production,
productivity and quality to technology, post-harvest infrastructure and marketing
● Aims to modernize and strengthen value chain, enhance traceability and establish
robust fisheries management framework while simultaneously ensuring socio-economic
welfare of fishers and fish farmers
NEEL KRANTI MISSION

● Mission: Blue Revolution, Neel Kranti Mission has vision to achieve economic
prosperity of country and fishers and fish farmers, as well as contribute towards food
and nutritional security through full potential utilization of water resources for fisheries
development in sustainable manner, keeping in view bio-security and environmental
concerns
NATIONAL POLICY ON MARINE FISHERIES 2017

● Background: In 2017, Government of India has notified 'National Policy on Marine
Fisheries, 2017' (NPMF)
● Vision: Provides guidance for promoting 'Blue Growth Initiative' which focuses on
ushering 'Blue Revolution' (NeeliKranti) by sustainable utilization of fisheries wealth
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from marine and other aquatic resources of country for improving lives and livelihoods
of fishermen and their families
● Schemes for Coastal Aquaculture: National Fisheries Development Board
(NFDB) assists coastal aquaculture through following schemes: Training and
Demonstration; Need based financial assistance for infrastructure development in
coastal aquaculture Aquatic Quarantine etc.); SPF shrimp Nauplii production centres
etc
NATIONAL BEE BOARD (NBB)

● Background: Small Farmers’ Agri-Business Consortium (SFAC) registered National
Bee Board as society under society’s registration Act, 1860 in 2000. National Bee
Board (NBB) was reconstituted (with secretary as chairman) in June 2006
● Objective: Overall development of beekeeping by promoting scientific beekeeping in
India to increase productivity of crops through pollination and increase honey
production for increasing income of Beekeepers/ Farmers
HONEY MISSION
● National Honey Mission was launched in 2017 to increase honey production and
provide market access to beekeepers
● Aims to promote scientific beekeeping, develop infrastructure for honey processing and
storage, and create a brand for Indian honey in global market
● As part of Honey Mission, Khadi and Village Industries Commission (KVIC) offers
farmers hands-on training on bee management, familiarity with apiculture equipment,
techniques for extracting honey, and purifying wax
BEEKEEPING DEVELOPMENT COMMITTEE

● Bibek Debroy led beekeeping development committee under Economic Advisory
Council to which Prime Minister has made recommendations to enhance contribution
of beekeeping sector for achieving target of doubling farmer incomes by 2022-23
SCHEMES RELATED TO SERICULTURE

● Rishtri Krishi Vikas Yojana (RKVY): Sericulture is considered as an agriculture
allied activity under RKVY; Enables agriculturists to avail advantages of theme for
complete sericulture activities up to reeling
● Central Silk Board (CSB) Amendment: CSB (Amendment) Act, Rules and
regulations are notified by government of country to bring quality standards in egg
production
● Catalytic Development Programme (CDP): CDP-NREGA convergence
guidelines have been finalised and issued jointly by MOT and MORD. Farmers can avail
assistance from MGNREGA scheme to get benefit from these guidelines
● Forest Conservation Act: Amendment in Forest Conservation Act to treat non
mulberry sericulture as forest-based activity enabling farmers to undertake Vanya
silkworm rearing in natural host plantation in forests
Agricultural and Processed Food Products Export Development Authority

(APEDA)
● Established through APEDA Act passed by parliament in December, 1985 for
development of exports of agriculture industry in India
● Replaced Processed Food Export Promotion Council (PFEPC)
● Main functions of authority are registration of people as exporters, fixing standards
and specifications for scheduled products, carrying out inspections, collecting statistics
and providing information, training and advisory services to exporters
● Responsible for export promotion and development of 18 agricultural and
processed products including Basmati Rice, fruits and vegetables, meat and meat
products, dairy products, honey, jaggery etc

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Sahakar-Se-Samriddhi: From Cooperation to Prosperity

● Cooperative societies, especially in agriculture, dairy and fisheries sectors, provide rural
population with livelihood opportunities and financial safety net with community based
approach
● Cooperatives hold key to rural economic transformation
● There are 8.5 lakh registered cooperatives in India, having more than 29 crore
members mainly from marginalised and lower-income groups in rural areas,
and 98 percent of villages are covered by Primary Agriculture Credit
Societies (PACS)
● To realise vision of “Sahakar-see-Samriddhi”, renewed impetus was given to
growth of cooperative sector. As per Economic Survey 2022-23, currently, around
19 percent of agriculture finance is through cooperative societies
● Full-fledged Ministry of Cooperation was established in July 2021 to provide
greater focus to cooperative sector
● In addition, Government has taken various initiatives to promote and strengthen
PACS, like computerisation of 63,000 functional PACS and preparation of by-
laws for enabling PACS to expand their activities
● Multi-State Cooperative Societies Act, 2002 (MSCS) was enacted after
repealing Multi-State Cooperative Act 1984, to facilitate democratic functioning
and autonomous working of Multi-State Cooperative Societies in line with
established Cooperative Principles
● As of date, there are 1528 registered societies under Multi-State Cooperative Societies
Act 2002
NEW NATIONAL COOPERATION POLICY
● New National Cooperation Policy is being formulated. The aim of policy is:
○ strengthening cooperative movement in country and deepening its reach up to
grassroots
○ promoting cooperative-based economic development model
○ creating appropriate policy, legal and institutional framework to help
cooperatives realise their potential
● In addition, Government has also decided to introduce Multi-State Co-operative
Societies (Amendment) Bill, 2022, seeks to amend Multi-State Co-operative
Societies Act, 2002, to bring it in line with Part IXB of Constitution and to strengthen
cooperative movement in India
○ Bill has provisions relating to electoral reforms, strengthening governance
and transparency, reforming composition, meetings and membership of board;
enabling raising of funds by co-operative sector, strengthening monitoring
mechanism, enhancing ‘Ease of doing business’, etc
Agricultural Revolution in India

RAINBOW REVOLUTION
Background
● Concept of Rainbow revolution is an integrated development of crop cultivation,
horticulture, forestry, fishery, poultry, animal husbandry, and food processing industry
● Concept of Rainbow revolution in agriculture is a step towards sustainability
Mission under Rainbow Revolution

● Multiple colors of Rainbow Revolution indicate multiple farm practices such as “Green
Revolution (Food grains), White Revolution (Milk), Yellow Revolution (Oilseeds), Blue
Revolution (Fisheries); Golden Revolution (Fruits); Silver Revolution (Eggs), Round
Revolution (Potato), Pink Revolution (Meat), Grey Revolution (Fertilizers)” and so on
WHITE REVOLUTION
Background

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● “Operation Flood” programme leading to “White Revolution” in India was started by

National Dairy Development Board (NDDB) in 1970s under chairmanship of Dr.
Verghese Kurien with objective of creating nationwide milk grid
● Principal architect of this successful programme is Dr. Verghese Kurien, called father of
White Revolution
Purpose
● Implemented as dairy program to generate self-employment and regular incomes for
millions of rural households
● Often, farmers hardly get one-third of retail price because large share of retail prices of
farm products goes to middlemen and competitive forces do not operate in case of
agricultural value-chain
Facts and Data

● From chronic milk deficit nation in 1950-51, with production of 19 million Ton (MMT)
per year, production had increased to 176 MMT in 2017, and per capita availability of
milk has reached 375 grams per day
GREEN REVOLUTION
● Background: It was in 1960’s that M.S. Swaminathan coined term green revolution
which meant conversion of Indian agriculture into modern one
● Purpose: With introduction of higher yielding variety seeds (HYV) mechanised farm
tools, irrigation facilities, pesticides and fertilisers. It focused on rise in production of
food grains, mainly wheat
PROTEIN REVOLUTION
● Background: Term protein revolution is given by Narendra Modi and Arun Jaitley in
2014 with beginning of this revolution which is also described by government as second
technology-driven green revolution that aims at higher productivity
● Purpose: Farmers were motivated to increase their land productivity and food grain
products by using scientific methods of farming
YELLOW REVOLUTION
● Background: Launched in 1986-87 by Sam Pitroda, also known as father of yellow
revolution in India
● Purpose: To increase production of edible oil, especially mustard and sesame seeds to
achieve self-reliance other targeted oil seeds are groundnut, mustard, soybean,
safflower, sesame, sunflower, niger, linseed and castor
BLUE REVOLUTION
● Background: Also called Neel or Nili Kranti Mission Blue Revolution was launched in
late 90’s (1985-90). This was government-based initiative launched by Dr. Arun
Krishnan & Dr. Hiralal Chaudhary
● Objective: To develop, manage, and promote fisheries to double the farmers income
GOLDEN REVOLUTION
● Background: Nirpakh Tutej in 1991 introduced golden revolution which initially
focused on the better production of honey & horticulture
● Purpose: Considered to be part of important agricultural revolution of India which
made India a world leader in production of bananas, mangoes etc
PINK REVOLUTION
● Background: Term pink revolution was coined by Durgesh Patel
● Purpose: Denotes revolution in technologies used in poultry and meat processing
sector which resulted in a boom of export and production of meat in India

14
SILVER REVOLUTION
● Background: Initiated by Indira Gandhi in 1969-78 silver revolution is process of
increase in production of eggs as well as poultry
● Purpose: This was achieved by using hybrid cocks as well as hens and applications
applied science to promote egg production. It made India stand as 3rd largest egg
producer after China and USA
RED REVOLUTION
● Background: Led by Vishal Tewari in 1980’s the red revolution was an agricultural
reform in India that resulted in an increase in tomato and meat production
● Purpose: Has given a boost to economy of country and is a major source of profit for
farmers
NATIONAL SAFFRON MISSION

● Launched in 2010-11 for four years by Ministry of Science and Technology to increase
cultivation of saffron in Jammu and Kashmir
● However, due to heavy loss in production during 2014, mission was given an extension
by Government of India
● In 2020, Government revised its objective and aimed to start cultivation of saffron in
North East India with help of NECTAR
Saffron
● Plant whose dried stigmas (thread-like parts of the flower) are used to make saffron
spice
● Very precious and costly agricultural product which is used for flavouring,
colouring and in medicinal and pharmaceutical industries
● Altitude: Grows well at an altitude of 2000 metres above sea level and needs
sunlight of 12 hours per day
● Soil: Thrives best in calcareous soil (having calcium carbonate in abundance),
humus-rich and well-drained soil with a pH between 6 and 8
● Rainfall: 100-150 cm of annual rainfall is required
Saffron Bowl Project

● NorthEast Center for Technology Application and Reach (NECTAR) under saffron
bowl project has identified few locations in Arunachal Pradesh and Meghalaya for
saffron cultivation
● Total cost of whole project is Rs. 17.68 lakhs for Arunachal Pradesh and Meghalaya
● In Arunachal Pradesh, there is good growth of organic saffron with flowers. In
Meghalaya, sample plantations were grown at Cherrapunji, Mawsmai and Lalingtop sites
● Following sites have been identified in Meghalaya under said project: Barapani;
Cherrapunji; Mawsmai; Shillong; Lallingtop
NECTAR
● NECTAR is autonomous body established in 2012 under Department of
Science and Technology with its headquarters at Shillong, Meghalaya
● Helps eight states of North-Eastern Region in harnessing and leveraging niche
technologies available with central scientific departments and institutions in areas of
biodiversity, telemedicine, watershed management, horticulture, infrastructure
planning and development, employment generation etc
Saffron producing regions in India

● Saffron production in India was introduced in Kashmir by Central Asian immigrants in
1st century BCE
● Since then, its cultivation has been confined to few specific regions of Kashmir like
Pampore, Budgam, Srinagar and Kishtwar only due to presence of well drained
Karewa soil in Kashmir

15
o Pampore region also known as Saffron Bowl is one of Globally

Important Agricultural Heritage Systems (GIAHS) recognised sites
by FAO in India
o Recently, Kashmir saffron got Geographical Indication (GI) tag also
Why is saffron cultivation now being diversified to the North-East Region?

● India cultivates about 6 to 7 tonnes of saffron while demand is about 100
tonnes
● Huge similarity in climatic and geographical conditions between saffron growing
regions of Kashmir and few regions of northeast
● Also diversify agriculture and will provide new opportunities to farmers in
North East
Issues and challenges with regard to saffron cultivation

● Decline in area under cultivation and difficulty in extending area under saffron
cultivation in Jammu and Kashmir due to urbanisation
● Lower yields in comparison to other countries due to which imports are growing from
other countries
● Huge supply-demand mismatch
PURPLE REVOLUTION
● Also known as ‘Lavender Revolution’, it was launched by Union Ministry of Science &
Technology through Council of Scientific & Industrial Research (CSIR) Aroma
Mission
● Mission aims to increase income of farmers and promote lavender cultivation on
commercial scale
● Under the mission, first-time farmers are given free lavender saplings, while those
who had cultivated lavender before were charged Rs. 5-6 per sapling
● Lavender has been designated by central government as "Doda brand product" to
promote rare aromatic plant
Lavender
● Flowering plant in mint family that's easily identified by its sweet floral scent
● Cultivation of lavender is very cost-effective as it yields revenue immediately
● Low maintenance crop, which can be used from its second year of plantation and
blossoms for fifteen years. In its entirety, lavender production gives better returns
when compared to other traditional crops
● Jammu and Kashmir climatic conditions are conducive to lavender
cultivation, since aromatic plant can withstand both chilly winters and pleasant
summers
● Under One District One Product-Districts as Export Hubs (ODOP-DEH)
initiative, lavender cultivation in Jammu and Kashmir has experienced a significant
boom
Applications of the Lavender

● Lavender oil is main commodity which sells, for, at least, Rs 10,000 per litre
● Other popular products include medicines, incense sticks, soaps, and air
fresheners.
Table: Represents list of important revolutions in India
Revolutio Products Features Father of Perio
ns revolution d
Round Potato Revolution aimed at increasing — 1965-
revolutio production of potatoes in county 2005
n

16
Green Food grains Main aim of green revolution was Norman 1966-
revolutio (rice and to increase agricultural Borlaug, 1967
n wheat) productivity in developing world M.S.
Focused on transforming India by Swaminatha
adopting new technology, such as n
the use of high yielding variety
(HYV) seeds, irrigation facilities,
mechanised farm tools, fertilizers
and pesticides
Grey Fertilizers and Associated with fertilizers which — 1960s
revolutio wool will further help for success of -
n production green revolution 1970s
Pink Prawn or Focused upon technological Durgesh 1970s
revolutio onion revolution in poultry and meat Patel
n production processing sector
White Milk Aimed at development of dairy Verghese 1970-
revolutio production farmers Kurien 1996
n Focussed in eliminating
(Operatio malpractices practised by milk
n flood) traders
Main objective of operation flood
was to increase production of
milk at affordable prices
Blue Fish Aimed at rapid production of fish Dr. Arun 1973-
revolutio production and sea water organisms Krishnan 2002
n Increase in production was done
through fish breeding, fish
marketing and fish export
Red Meat or Main aim of revolution was to Vishal 1980s
revolutio tomato increase productivity of both Tiwari
n production meat and tomatoes
Yellow Oilseed Aimed at increasing production of Sam Pitroda 1986-
revolutio production edible oil, especially mustard oil. 1990
n This revolution mainly targets on
9 types of oilseeds
Brown Leather/cocoa Concerned with organic farming Hiralal —
revolutio production and improvement in soil quality Chaudhari
n Aimed at increasing production of
coffee, cocoa & leather
production
Golden Jute Aimed at increasing production — 1990s
fiber production and productivity of Jute Fiber.
revolutio
n
Golden Fruits/Honey/ Focussed on honey and animal Nirpakh 1991-
revolutio Horticulture husbandry production Tutaj 2003
n production Also helped in fulfilling demand of
vegetables to people
Silver Egg/Poultry Leads to increase in egg Indira 2000s
revolutio production production and poultry farming Gandhi
n
Silver Cotton Mainly associated with increase in — 2000s
fibre cotton production and
revolutio productivity
n

17
Protein Agriculture Also known as Technology driven Coined by 2014-

revolutio 2nd Green revolution Narendra 2020
n Price Stabilization fund of Rs. 500 Modi and
crore was also set up to help Arun Jaitley
farmers deal with volatility
Evergree Overall Concentrates on Overall M.S. 2017-
n development Production of Agriculture, Started Swaminatha 2022
revolutio of agriculture in 11th Five Year Plan n
n
Black Petroleum Aiming to increase petroleum — —
revolutio production production, Government planned
n to accelerate production of
ethanol and mix it up with petrol,
to produce biodiesel
FOOD PROCESSING SECTOR

● Food processing is conversion of agricultural materials into food or transformation of
one type of food into another
● From grinding grain to make raw flour to home cooking to advanced industrial
procedures used to make convenience items, food processing encompasses a wide
range of activities
● In India, food processing sector is governed by Ministry of Food Processing Industries
● Food processing sector is of enormous significance for India's development because of
strong connections and interactions it promotes between industry and agriculture
● During last five years ending FY21, food processing industries sector has been growing
at an
average annual growth rate of around 8.3 percent
● As per latest Annual Survey of Industries (ASI) 2019-20, 12.2 percent of
persons in registered manufacturing sector were employed in food processing sector.
The value of agri-food exports, including processed food exports, was about 10.9
percent of India's total exports during 2021-22
FOOD PROCESSING TECHNIQUES

● Primary Food Processing: Transforms agricultural items like raw wheat kernels and
cattle into something that can be consumed
o Examples: Ingredients generated through ancient methods such as drying,
threshing, winnowing, and milling grain, shelling nuts, and butchering animals for
meat fall into this category
● Secondary Food Processing: Process of making food from ready-to-eat components
o Examples: Baking bread, fermenting fish, and creating wine, beer, and other
alcoholic beverages are all examples of traditional secondary processing
● Tertiary Food Processing: Commercial manufacturing of what is popularly
referred to as processed food is referred to as tertiary food processing
o Examples: TV dinners and reheated aeroplane meals are examples of ready-
to-eat or heat-and-serve cuisine
BENEFITS OF FOOD PROCESSING

● Strong and dynamic food processing sector plays vital role in reduction in wastage of
perishable agricultural produce
● Enhances shelf life of food products and ensures value addition to agricultural produce
● Also plays important role in diversification and commercialisation of agriculture,
generation of employment, enhancing the income of farmers and creating surplus for
export of Agro & processed foods
IMPORTANCE OF THE FOOD PROCESSING INDUSTRY FOR INDIA

● Increase farmer revenue by better utilising and adding value to agricultural products
18
● Develop infrastructure for storage, transportation, and processing of Agro-food

produce to reduce waste at all levels of the food processing chain
● Modern technology from both domestic and international sources is being introduced
in agricultural sector through food processing industries
● Provide policy assistance, as well as funding for infrastructure development, capacity
expansion/upgrading, and other growth-promoting measures
● Encourage export of processed foods
● Create Job Opportunities: Because it serves as link between agriculture and
manufacturing, it creates both direct and indirect employment opportunities
● Reduces malnutrition: When supplemented with vitamins and minerals, processed
foods can help close nutritional gap in the population
● Crop diversification: Different sorts of inputs will be required for food processing,
offering an incentive for farmers to develop and diversify crops
CHALLENGES RELATED TO THE SECTOR

● Inadequate primary processing, storage, and distribution facilities: Lack of
proper infrastructure for primary processing, storage, and distribution of food products
often leads to wastage and poor quality of final product. This hampers sector's growth
and makes it less competitive
o NITI Aayog Strategy for New India identifies lack of adequate and efficient cold
chain infrastructure as critical supply-side bottleneck that leads to massive post-
harvest losses (mostly of perishables) estimated at ₹92,561 crore annually
Uneven geographic distribution of cold storage infrastructure also contributes
to regional-level disparities
● Insufficient connection between production and processing: There is often a
gap between production and processing of food products; leads to mismatch in supply
and demand and affects sector's efficiency
● Seasonality of operations and low-capacity utilizations: Food processing sector
in India is highly seasonal, with most activity concentrated during certain times of year.
This results in low capacity utilization and affects sector's profitability
● Institutional gaps in the supply chains: Dependence on Agricultural Produce
Market Committee (APMC) markets often leads to inefficiencies and delays in supply
chain. This affects sector's competitiveness and leads to higher costs for consumers
● Lack of focus on quality and safety standards: Food processing sector in India
often fails to meet quality and safety standards, leading to product recalls and health
hazards. This affects sector's reputation and hampers its growth prospects
● Insufficient product development and innovation: There is lack of focus on
product development and innovation in food processing sector in India. This affects
sector's ability to adapt to changing consumer preferences and market trends
● Bureaucratic hurdles: Setting up food processing unit in India involves multiple
clearances, which can be time-consuming and expensive. This affects sector's
competitiveness and makes it less attractive to investors
● Informalization in food processing industry: Informal nature of food processing
industry in India leads to inefficiencies and poor-quality products. This affects sector's
growth and competitiveness
● Difficulty in accessing bank credit: MSMEs in food processing sector often face
difficulty in accessing bank credit due to seasonal and perishable nature of commodities
they handle. This affects their ability to invest in technology and expand their
operations
GOVERNMENT POLICY INITIATIVES AND MEASURES TO SUPPORT THE FOOD

PROCESSING INDUSTRY
National Mission on Food Processing
● Background: In 2012, Ministry of Food Processing Industries (MOFPI) announced
start of Centrally Sponsored Scheme (CSS) called National Mission on Food Processing
(NMFP), to be implemented by states and UTs
19
● Primary Goal: NMFP called for creation of National Mission as well as State and
District Missions. The primary goal of NMFP is to decentralise implementation of food
processing-related schemes so that State Governments/UTs can play a significant role
● Mission: Apart from having more important role in policy creation, mission was
expected to greatly increase Ministry's outreach in terms of planning, oversight, and
monitoring of numerous programmes
FDI Investment
● 100% FDI Investment: Indian government wants to accelerate growth in food
processing sector by leveraging reforms, including 100 percent foreign direct
investment (FDI) in food marketing and other incentives at federal and state levels, as
well as significant focus on supply chain infrastructure
● Automated Approach: Indian government has eased sector's foreign direct
investment (FDI) rules, allowing up to 100% FDI in food goods e-commerce via an
automated approach
● FSSAI Investment: Food Safety and Standards Authority of India (FSSAI) proposes to
invest roughly Rs 482 crore to upgrade 59 current food testing facilities and establish
62 mobile testing labs across country to boost India's food testing infrastructure
● International Practices: Indian Council for Fertilizer and Nutrient Research (ICFNR)
would follow international best practices in fertiliser research, allowing farmers to
obtain high-quality fertilisers at reasonable prices and ensuring food security for the
general public
Prime Minister’s Formalisation of Micro Food Processing Enterprises (PMFME)

● Ministry of Food Processing Industries launched in 2020 Prime Minister's
Formalisation of Micro Food Processing Enterprises (PMFME) Scheme as
part of ANB Abhiyan
● Aims to enhance competitiveness of individual micro-enterprises in
unorganised segment and promote formalisation of this sector by providing financial,
technical and business support for upgradation/setting up of 2 lakh micro units in the
country
● As of 31 December 2022, 15,095 loans of ₹1402.6 crore were sanctioned
● Scheme adopts One District One Product (ODOP) approach to reap benefit of
scale in procuring inputs, using shared services and marketing products
● So far, 713 Districts with 137 unique products were approved under ODOP in 35
States/ Uts
Prime Minister Kisan SAMPADA Yojana (PMKSY)

● SAMPADA stands for (Scheme for Agro-Marine Processing and Development of Agro-
Processing Clusters)
● Approved by Government of India in 2017. Under PMKSY, 677 projects have been
completed till 31 December 2022
Objectives
● Modern Infrastructure: aims to create modern infrastructure with efficient supply
chain management from farm gate to retail outlet
● Developing Agricultural Facilities: aims to help investors, entrepreneurs, farmers,
farmer organisations, and agriculture cooperatives through developing agricultural
facilities
● Plants near agricultural areas: encourages entrepreneurs to establish food
processing plants near agricultural areas
● Purpose: Grants are available for development of cold storage facilities, specialised
packaging units, warehousing facilities, and other preservation facilities
● Government Facilities: In most areas, scheme gives grant in aid of 35 percent of
approved project cost, with 50 percent in northeast and Himalayan states

20
Schemes under PMKSY Yojana

● Mega Food Parks: Government of India gives financial assistance up to Rs. 50.00
crore per Mega Food Park project under Mega Food Park Scheme. It also gives
convenience to processors and businesses who use its facilities, as well as creating jobs
and improving services
● Cold Chain and Value Addition Infrastructure: Objective is to provide integrated
cold chain and preservation infrastructure facilities, without any break, from the farm
gate to the consumer
● Creation/ Expansion of Food Processing/ Preservation Capacities (Unit
Scheme): Will help in increasing level of processing value addition and thereby
reduction of wastage. Processing units undertake wide range of processing activities
depending on processing sectors which results in value addition and/or enhancing shelf
life of processed products
● Infrastructure for Agro-processing Cluster: Aims at development of modern
infrastructure and common facilities to encourage a group of entrepreneurs to set up
food processing units based on cluster approach closer to production areas
● Creation of Backward and Forward Linkages: Objective of scheme is to provide
effective and seamless backward and forward integration for processed food industry
by plugging gaps in supply chain in terms of availability of raw materials and linkages
with the market
● Food Safety and Quality Assurance Infrastructure: aims to establish surveillance
system for monitoring quality and composition of food
● Human Resources and Institutions: R&D work should benefit food processing
industry in terms of product and process development, efficient technologies and
improved packaging
Production Linked Incentive Scheme

● Launched in March 2022, has specific mandate to incentivise investments to create
global food champions
● Sectors with high growth potential, like marine products, processed fruits & vegetables,
and ‘Ready to Eat/ Ready to Cook’ products, are covered for support
● In phase-I, 149 applications have been selected for assistance under PLISFPI.
Subsequently, a PLI Scheme for millet-based products was also introduced with an
outlay of ₹800 crore. In phase-II, 33 applications (both organic and millet products)
have been selected
Objectives of the scheme

● Support creation of global food manufacturing champions.
● Strengthen select Indian brands of food products for global visibility and wider
acceptance in international markets
● Increase employment opportunities for off-farm jobs
● Ensuring remunerative prices of farm produce and higher income to farmers
Operation Greens
● Announced in Union Budget for 2018-19 to promote Farmer Producer Organizations
(FPOs), agri-logistics, processing facilities and professional management for Tomato,
Onion and Potato (TOP) crops
● The Scheme was launched with two components:
o Long-term: Value Chain Development Projects: Support is provided to capital
investment projects for TOP crops. In pursuance of Budget announcement
2021-22, scope of this scheme has been expanded from TOP to Twenty-Two
Perishable products
o Short term: Price Stabilisation Measures - Subsidy is provided at rate of 50
percent on transportation and storage at time of harvest for evacuation of
surplus production of TOP crops from producing area to the consumption
centres
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Gram Samriddhi Yojana

● Seeks to strengthen unorganised food processing sector, which is largely rural
● Rs. 3000 crore scheme funded by World Bank and centre will assist cottage industry,
farmer producers' organizations, and individual food processors to increase capacity,
upgrade technology, in addition to skill development, entrepreneurship promotion, and
strengthening the farm-to-market supply chain
TRIFOOD Project
● TRIFED, Ministry of Food Processing Industries (MoFPI), and Ministry of Tribal Affairs
are implementing TRIFOOD Project
● Aims to increase income of tribal forest gatherers by maximising use of Minor Forest
Produce (MFP)
Food Processing Fund

● A special fund that was set up by National Bank for Agriculture and Rural Development
(NABARD) with a corpus of Rs. 2,000 crores
● Primary objective- to provide affordable credit to food processing units located in Mega
and Designated Food Parks
● Provides financial assistance to food processing units located in these parks for setting
up new units, expansion of existing units, modernization of facilities, and other related
activities. Fund provides both term loans and working capital loans to eligible units at
attractive interest rates
Draft New Food Processing Policy

● Ministry of Food Processing Industries on 10th December 2021 has highlighted key
objectives of draft National Food Processing Policy
● Draft policy aims for development of food processing sector and addressing critical
gaps hampering its growth
● Also aims to increase investment in sector by six-fold by 2035
Key objectives of the draft policy are

● Attaining higher growth trajectory through significant increase in investment for
strengthening supply chain infrastructure and expansion of processing capacity
particularly in perishables
● Improving Competitiveness through technology upgradation, Research & Development,
Branding and strengthening India’s USP in food sector
● Attaining long term sustainability in growth of sector through efficient use of water,
energy, adoption eco-friendly technology in processing, storage, packaging and use of
waste from FPI industry
UDAN 2.0
● To focus on transporting perishable food products, including horticulture, fishery,
livestock and processed products, from Hilly Areas, North-Eastern States and Tribal
Areas, Krishi UDAN 2.0 version was launched in October 2021 as six-month pilot
project
● Airports Authority of India (AAI) provides full waiver of Landing, Parking, Terminal
Navigational Landing Charges (TNLC) and Route Navigation Facility Charges (RNFC)
for Indian freighters and P2C (Passenger-to-Cargo) aircraft
● Assists farmers in transporting agricultural products and improves value
realisation
FOOD FORTIFICATION
● Food Fortification is deliberate addition of one or more micronutrients to food to
correct or prevent deficiency and provide health benefit
● These nutrients may or may not have been originally present in food before processing

22
● Food fortification is “complementary strategy” and not replacement for balanced &
diversified diet to address malnutrition
Advantages of Food Fortification

● Improvement of Health: Can improve health of alarge section of population, all at
once since nutrients are added to staple foods that are widely consumed. Example:
salt and rice can be fortified
● Safe Method: Of improving nutrition among people as quantity added is very small
and well-regulated as per prescribed standards
● Delivers essential nutrients: Socio-culturally acceptable way to deliver nutrients to
people as it does not require any changes in food habits and patterns of people and
does not alter characteristics of food; the taste, the feel, the look
● Quick result-oriented method: Cost-effective and delivers quick results.
Copenhagen Consensus estimates that every 1 Rupee spent on fortification results in 9
Rupees in benefits to economy
Need for food fortification

● Deficit of micronutrients: Nearly 70% of people in India consume less than half of
their recommended dietary allowance (RDA) of micronutrients. Deficiency of
micronutrients is also known as “hidden hunger” and leads to various diseases like
Night Blindness, Goitre, Anaemia and various birth defects
● National Family Health Survey-4 Data
o 58.4 per cent of children (6-59 months) are anaemic
o 53.1 per cent of women in the reproductive age group are anaemic
o 35.7 per cent of children under 5 are underweight. Around 50-70% of these
birth defects are preventable, caused due to deficiency of Folic Acid
Challenges to food fortification

● Voluntary nature: Fortification continues to be voluntary rather than mandatory
leading to limited efforts to fortify by state governments and private sector
● Poor implementation by states: Although some states have adopted fortification in
ICDS, MDMS and PDS, but due to lack of definitive policy guidelines, budgetary
constraints, technical knowledge and logistic support, states have not adopted
fortification in a holistic manner
● Weaknesses of FSSAI: Lacks resources and manpower to effectively carry out its
mandate.
● Lack of awareness: Lot of misinformation and ignorance about usage and benefits of
fortified food as of now
Way Forward
● Fortification initiative will combat high malnutrition, promote food processing industry
and also improve customer satisfaction
● Therefore, government must reform its institutional structure and its overall
implementation to mainstream this key initiative
PYQs(UPSC)
(Q). Under the Kisan Credit Card scheme, short-term credit support is given to farmers
for which of the following purposes ? (2020)
1. Working capital for maintenance of farm assets harvesters,
2. Purchase of combine tractors and mini trucks requirements of farm
3. Consumption households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
23
(c) 2,3,4 and 5 only

(d) 1, 2, 3, 4 and 5
Answer: (b)
(Q). In India, which of the following can be considered as public investment in agriculture?
(2020)
1. Fixing Minimum Support Price for agricultural produce of all crops.
2. Computerization of Primary Agricultural Credit Societies.
3. Social Capital Development.
4. Free Electricity supply to farmers.
5. Waiver of agricultural loans by the banking system.
6. Setting up of cold storage facilities by the government.
(a) 1,2 and 5 only
(b) 1,3,4 and 5 only
(c) (c)2,3 and 6 only
(d) 1,2,3,4,5 and 6
Answer: (c)
(Q).The economic cost of food grains to the Food Corporation of India is Minimum
Support Price and bonus (if any) paid to the farmers plus (2019)
(a) transportation cost only
(b) interest cost only
(c) procurement incidentals and distribution cost
(d) procurement incidentals and charges for godowns
Answer: (c)
(Q).Among the agricultural commodities imported by India, which one of the following
accounts for the highest imports in terms of value in the last five years? (2019)
(a) Spices
(b) Fresh fruits
(c) Pulses
(d) Vegetable oils
Answer: (d)
(Q).Consider the following statements: (2018)

1. The quantity of imported edible oils is more than the domestic production of edible
oils in the last five years.
2. The Government does not impose any customs duty on all imported edible oils.
Which of two statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (a)
(Q).Consider the following (2018):

1. Areca nut
2. Barley
3. Coffee
4. Finger millet
5. Groundnut
6. Sesamum
7. Turmeric
The Cabinet Committee on Economic Affairs has announced the Minimum Support Price
for which of the above?
24
(a) 1, 2, 3 and 7 only

(b) 2, 4, 5 and 6 only
(c) 1, 3, 4, 5 and 6 only
(d) 1, 2, 3, 4, 5 and 7
Answer: (b)
(Q).What is/are the advantage/advantages of implementing the ‘National Agriculture

Market’ scheme? (2017)
1. It is a pan-India electronic trading portal for agricultural commodities.
2. It provides the farmers access to nationwide market, with prices commensurate with
the quality of their produce.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)
(Q).The Fair and Remunerative Price of Sugarcane is approved by the: (2015)

(a) Cabinet Committee on Economic Affairs
(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Marketing Committee
Answer: (a)
(Q) In India, markets in agricultural products are regulated under the (2014):
(a) Essential Commodities Act, 1955
(b) Agricultural Produce Market Committee Act enacted by States
(c) Agricultural Produce (Grading and Marking) Act, 1937
(d) Food Products Order, 1956 and Meat and Food Products Order, 1973
Answer: (b)
(Q).With what purpose is the-Government of India promoting the concept of "Mega Food
Parks"? (2012)
1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco--friendly food processing technologies to entrepreneurs.
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (d)
(Q)In India, which of the following have the highest share in the disbursement of credit to
agriculture and allied activities? (2011)
(a) Commercial Banks
(b) Cooperative Banks
(c) Regional Rural Banks
(d) Microfinance Institutions
Answer: (a)
MAINS
(Q).Livestock rearing has a big potential for providing non-farm employment and income in
rural areas. Discuss suggesting suitable measures to promote this sectors in India.

25
(Q)Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for
crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana
(PMFBY).
(Q)What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers
from the low income trap?
(Q)Examine the role of supermarkets in supply chain management of fruits, vegetables and
food items. How do they eliminate the number of intermediaries?
(Q)Assess the role of National Horticulture Mission (NHM) in boosting the production,
productivity and income of horticulture farms. How far has it succeeded in increasing the
income of farmers? (
(Q).How has the emphasis on certain crops brought about changes in cropping patterns in
the recent past? Elaborate the emphasis on millets production and consumption.
(Q)Elaborate the scope and significance of the food processing industry in India.

26

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AGRICULTURE PART I

Few facts related to Agriculture sector

Year Percentage Share of GVA of

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(Growth of Agriculture & Allied Sectors: Economic Survey 2023-24)

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(Trend of production of major crops: Economic Survey 2022-23)

Few facts related to allied sectors

Facts related to Food Processing Sector

Agriculture development in India- Green Revolution

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○ Increasing dependence on food from the U.S during Indo-Sino(1962), Indo-Pak(1965)

Components of the Green Revolution

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Phases of Green Revolution

Second Phase (1973-80)

Third Phase (1981-90)

Impact of Green Revolution in India

Faster adoption of HYV seeds due to Slow adoption of HYV seeds

Rapid increase production and Little increase production and productivity

Decrease in dependency ratio Increase in dependency ratio

Multiplication of immovable assets and Decrease in immovable assets and decline in

Polarisation of rural society Small farmers united

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● Benefits for Industrial sector

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■ Unbridled use of chemical pesticides and weedicides and their industrial

Second Green Revolution

Evergreen revolution in India

Features of cropping system in India

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Significance of cropping pattern

Types of cropping pattern

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Factors that determine cropping pattern in India

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Issue of stubble burning

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● Quality of seed determines production and productivity of the crop

Measures to provide best quality seeds to farmers

National Seed Policy, 2002

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Protection of Plant Varieties and Farmers’ Rights Act, 2001

Seed Bill, 2019

Seed Banks/Seed Vault

Seed Village Programme

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Sub Mission for Seed and Planting Material (SMSP)

Other Seed related schemes launched by Government

Nutrients required by the plants

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Major types of fertilisers used in India

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Fertiliser Policy in India

New Pricing Scheme (NPS)

Nutrient Subsidy Scheme (NBS)

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○Government announces subsidy on Phosphatic and Potassic (P&K) fertilisers annually

New Urea Policy 2015

Neem Coated Urea Policy 2015