IASExam-Congress

Agriculture(ES 2023-24):
In the last five years, the agriculture sector has grown at an average growth rate of 4.18 per
cent per year. India exports more than 7 per cent of its food grains.
Indian agriculture sector provides
livelihood support to about 42.3 per cent of the population and has a share of 18.2 per cent in
the country’s GDP at current prices.
Specific challenges remain:
1. Low productivity levels.
2. Fragmented land holdings(89.4 per cent of farm households own less than 2 hectares of
land).
3. Low farm investment.
4. Inadequate marketing infrastructure → leading to postharvest losses.
5. Lack of farm mechanisation.
6. Dependency on rains and short growing seasons are a few reasons for the low yields.

#Promoting Crop Diversification:

In 2022-23, foodgrain production hit an all-time high of 329.7 million tonnes, and oilseeds
production reached 41.4 million tonnes.
Government has promoted crop diversification through:
1. Crop Diversification Programme (CDP) under the Rashtriya Krishi Vikas yojana (RKVY)
to demonstrate and promote better production technologies of alternate crops.
2. National Food Security Mission (NFSM) → to enhance the production and productivity
of foodgrain and commercial crops,access to high-yielding varieties, integrated nutrient
and pest management techniques, efficient water saving devices, and capacity building
of farmers etc.
3. Higher increase in MSP over the average cost of production for oilseeds and pulses.
4. National Food Security Mission- Oilseeds & Oil Palm (NFSM-OS&OP) → improved
productivity and increase in acreage under cultivation.
➢ Total area coverage of all oilseeds has expanded increasing from 25.60 million hectares
in 2014-15 to 30.08 million hectares in 2023-24 (17.5 per cent growth).
➢ The domestic availability of edible oil has risen from 86.30 lakh tonnes in 2015-16 to 121.33
lakh tonnes in 2023-24.
➢ This has reduced the percentage share of imported edible oil, from 63.2 per cent in
2015-16 to 57.3 per cent in 2022-23.

#Investment and Access to credit in Agriculture and allied sectors:

The GCF of the agriculture sector and the share of GCF in the agriculture and allied sectors as a
percentage of Gross Value Added (GVA) has been growing steadily, mainly due to increased
public investment.
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DFI 2016 report indicated that to double farmers’ income over the period of 2016-17 to 2022-23,
income would need to grow at an annual rate of 10.4 per cent, which in turn would require an
annual growth rate in agriculture investment of 12.5 per cent.
Challenge → fragmentation of agricultural land, which has adversely affected farmers’
investments, the private corporate sector’s share has remained below 2 per cent
Subsidies to the agriculture sector more than doubled
between 2011-12 and 2020-21, with the fastest increase seen in fertiliser and power
Recognising the need to crowd in private investments:
1. Agriculture Marketing Infrastructure (AMI) sub-scheme of the Integrated Scheme for
Agricultural Marketing (ISAM), under which capital subsidy is provided → offering
subsidies of 25 per cent (for the plains) and 33.33 per cent (for North-East and hilly
regions) to individuals, farmers, FPOs, cooperatives, and state agencies.
2. Agriculture Infrastructure Fund (AIF) was launched with a financing facility of ₹1 lakh
Crore to be disbursed between FY 2020-21 to FY 2025-26 → medium-term debt financing
for post-harvest management and community farming projects, offering interest
subvention and credit guarantee support.
3. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) grants-in aid to build efficient supply
chain management from farm to retail to reduce the wastage of perishable produce and
extend food shelf life.
Access to credit:
1. Kisan Credit Card (KCC) has streamlined agricultural credit accessibility,was extended to
meet the working capital needs of fisheries and animal husbandry activities in 2018-19.
2. Joint Liability Groups (JLGs) have emerged as an essential source of credit for tenant
farmers.
3. Pradhan Mantri Fasal Bima Yojana (PMFBY) offer a safety net against crop losses due to
natural calamities, pests, or diseases, ensuring financial stability for farmers
➢ One study indicates that cumbersome procedure of paying premiums, lack of bank
facilities near the village and poor awareness of the scheme among small and marginal
farmers have limited the impact of the scheme
Tech Intervention in PMFBY:
1. Digi-Claim-Payment Module → to integrate the National Crop Insurance Programme (NCIP) with public
financial management system (PFMS) end-to-end.
2. Yield Estimation Based on Technology (YES-Tech) is a technology-based yield estimation mechanism
runs across 100 country districts.
3. Weather Information Network & Data System (WINDS)- set up a network of Automatic Weather
Stations & Rain Gauges at Taluk/ Block and Gram Panchayat (GP) levels for use of all farmer and
farming-oriented service.
4. Collection of Real-time Observations and Photographs of Crops (CROPIC) → validate sown and insured
crops, assess crop damage,input for Technology-based yield estimation models
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#Agriculture Marketing:
A comprehensive and diversified marketing network enables the farmer to bring the produce
to the market most efficiently and timely. It reduces post-harvest losses, enhances
competition, and allows price discovery.
Average area served by mandis in the country is 434.48 sq.
km against the recommendation of the National Commission on Farmers (2006) of the market
within a radius of 5 Km (corresponding market area of about 80 sq. km.).

e-NAM → provides free software and assistance and the creation of infrastructure for
cleaning, grading, sorting, packaging, etc
e-nam initiative has generally had a positive impact on farmers by
enabling higher price realisation for their crops → 54 per cent of the farmers prefer
transactions through the eNAM portal over traditional markets due to the multiple benefits
derived

Improving the market infrastructure by incentivising states can be explored → This can be
done by creating an index to rank states, allowing the participation of cooperatives, and
enabling remunerative returns to investors according to the functioning of their APMCs and
other market institutions

#Remunerative Prices and Other Income Support Measures:

1. Government has been increasing the MSP for all 22 Kharif, Rabi and other commercial
crops with a margin of at least 50 per cent over the all-India weighted average cost of
production.
2. PM-KISAN → an economic benefit of ₹6000/- per year is transferred in three equal
four-monthly installments into the bank accounts of farmers’ families across the country
through Direct Benefit Transfer (DBT).
3. Pradhan Mantri Kisan Maandhan Yojna (PMKMY) → The scheme offers a monthly
pension of ₹3,000 to the enrolled farmers on the attainment of 60 years of age.

#Farm Mechanisation- Powering agriculture:

1. Sub Mission on Agricultural Mechanization (SMAM) provides assistance to the State
Government → , setting up of Custom Hiring Centres (CHC) and assists farmers in
procuring various farm machinery and equipment

#Sustainable Agriculture:
In the absence of the adoption of adaptation measures, rainfed rice yields in India are
projected to drop by 20 per cent in 2050 and 47 per cent in 2080 scenarios, while irrigated rice
yields are projected to reduce by 3.5 per cent in 2050 and 5 per cent in 2080 scenarios. Climate
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change is projected to reduce wheat yield by 19.3 per cent in 2050 and 40 per cent in 2080
scenarios.
Steps taken:
1. National Mission for Sustainable Agriculture, a part of the National Action Plan on
Climate Change (NAPCC) → evolve and implement strategies to make Indian agriculture
more resilient.
2. Rainfed Area Development (RAD), implemented under the NMSA to enhance
productivity and minimise risks associated with climatic variability.
3. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), consisting of two major components,
the Accelerated Irrigation Benefit Programme (AIBP) and Har Khet Ko Pani (HKKP),
promote the extension of areas under irrigation and water efficiency.
4. A Micro Irrigation Fund (MIF) of an initial corpus ₹5 thousand Crore has also been
created with NABARD → for expanding coverage of micro irrigation.
5. PDMC scheme also supports micro-level water harvesting, storage, management, etc.
Case studies:
1. Automation of Irrigation System: Narayanpur Left Bank Canal System (Karnataka) →government
implemented an automation system ,automated control and regulating gates, solar-powered
integrated gates, and a master VSAT communication system. These interventions have optimised water
use efficiency, improved equitable distribution, and enhanced overall agricultural productivity in the
region.
2. Diversion-Based Irrigation System in MP → use gravity flow to divert water from streams to
agricultural fields.
3. Growing Tomatoes Without Soil Using Vertical Farming in Hydroponics → This method has been
implemented in Port Augusta Farm, South Australia
#Fertilizer:
Current subsidy structure has contributed to an increased application of urea, which has
impacted the nutrient imbalance in the use of major plant nutrients.
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
Steps taken:
1. PM Programme for Restoration, Awareness Generation, Nourishment, and
Amelioration of Mother Earth (PM-PRANAM ) initiative incentivises states to reduce
chemical fertiliser use → promotes sustainable methods such as the use of alternative
fertilisers, viz. Nano Urea, Nano DAP, and organic fertiliser.
2. “Urea Gold”, which is urea infused with sulphur to address sulphur deficiencies, has been
another measure to improve the nutrient balance in the soil.
3. Organic and natural farming provides chemical-free fertilizer and pesticide-free food
grains and other crops
➢ Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development
for North Eastern Region (MOVCDNER)
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➢ National Cooperative Organics Limited (NCOL) work toward the production,
distribution, and marketing of certified and authentic organic products
Using Agri Stack to improve the targeting of fertiliser subsidy: It will ensure that subsidised
fertilisers are sold to only those identified as farmers or authorised by the farmer, and the
quantity of subsidised fertiliser is fixed based on parameters such as land ownership and
prominent crops of the district (comprising at least 70 per cent of sown area in a season.
E-RUPI, a seamless one-time payment mechanism, can be utilised to provide the necessary
subsidy to the farmer directly.

#Food Processing Sector (FPI):

India is the largest producer of milk and the second largest producer of fruits, vegetables and
sugar.
Sector also plays a vital role in reducing the wastage of perishable
agricultural produce, enhancing the shelf life of food products, ensuring value addition to
agricultural produce, and incentivises diversification & commercialisation of agriculture.
1. Food processing industry in India is one of the largest employers in organised
manufacturing, with a 12.02 per cent share
2. Agri food exports → 11.7% per cent of India’s total exports
3. Processed food exports also increased from 14.9 per cent in 2017-18 to 23.4 per cent in
2022-23 .
Initiatives:
1. PM Formalization of Micro Food Processing Enterprises (PMFME) → credit-linked
subsidy and capacity building, including marketing and branding support
2. Coverage of Operation Green has been expanded from 3 crops (tomato, onion &
potato) to 22 perishables crops, which include 10 fruits, 11 vegetables (including TOP)
and one marine, i.e. shrimp. The scheme’s objectives include enhancing farmers’ value
realisation, reducing post-harvest losses, increasing food processing capacities, and
adding value
● 50 per cent subsidy on the cost of transportation and storage for fruits & vegetables for
evacuation of surplus production
● 35 per cent to 50 per cent for setting up food processing project for eligible crops in the
identified production clusters in major producing states

Smallholder farmers’ incomes cannot be increased by producing rice, wheat, or even millets,
pulses and oilseeds. They need to move to high-value agriculture – fruits and vegetables,
fisheries, poultry, dairy and buffalo meat. Once the incomes of smallholders increase, they will
demand manufactured goods, spurring a manufacturing revolution. That is what happened in
China between 1978 and 1984 when the real incomes of farmers doubled in just 6 years. India
is well-placed to emulate this.