Agriculture

Data

17% GDP ,55% population , 1.08 hectare avg land
Food security
3.6 % production growth
State subj
SDG 2 - food security , DPSP 45

Issues

Productivity < US,china
Policy coherence (Centre,State)
Input price inc
76%farmers want to quit farming if given a chance (‘State of Indian Farmers’ report)
86% of the landholding is small and marginal
10 farmers suicide daily (2016, NCRB)
Non-remunerative price – farmers Shahganj, MP were forced to throw their tomatoes.

Solution

Ashok Dalwai com
Agri as enterprise - FPOs,VPOs
Swaminathan com
MP model - 9.7% - improve irrigation , road connectivity , marketing

Policy

Biased against Rainfed agriculture
Krishonnati yojana (2x Farmer Income) 11 scheme

Land

60% land at risk of

fertilizer misuse
Poor cropping practice (agro-climatic)
soil nutrient deficiency (NPK imbalance)

170 mn hectare cultivated -largest
157 mn operated area -10thAC15-16
85% marginal farmers
Fragmentation 10thAC15-16

small scale production,
x economies of scale,
x investment in mechanization,
little marketable surplus - low bargaining price
low income (20,000 annual -NSSO12-13)
indebtedness (inversely proportional to size ES17-18), inclusion issue in govt scheme, more risk (CC, market, credit, production )

Finalize D N land reform policy
NITI Aayog’s Model Land Leasing Act - Tajmul Haque - R to tenets & safeguard interest of owners
Land pooling (FPOS)
Ashok Gulati - solar panel in farm - avg 1lakh / annum

Enabling Infra

Warehouse, Road, Cold storage , agro processing unit, Sampada Yojana

Fertilizer

• Neem coated Urea, Soil Health card, Nutrient Based Subsidy scheme

Seeds

Sub- mission on seed & planting material KY
GM Crop, HYV
SB- ZBNF- Bija-amrit

irrigation types & sys storage

Water use efficiency

35-40 % surface irri
65-75% pumping ground water

53 % rainfed , monsoon dependency
Agri utlize - 90% water , 80%- r, w, s
AD - determining factor’ of production
PMKSY, AIBP, PDMC, Har khet ko pani, On farm water mgm- Sprinklr et al
Neeranchal watershed-MGNREGA
MP model - 9.7% - improve irrigation

Integrated pest management

15-25% loss- weed, pest, disease & rodent
SB- ZBNF- jiva amrit

Credit

40% loan - informal sector , 26% ML
AD- 15% marginal , 27% small farm get credit from inst sources -
Agri NPA rising - RBI 23%
WF

• Loan against negotiated warehouse receipts
• PM Kisan - input support
• KVP, KCC PO

Loan waivers

• 8 states - 1.9 trillion rupees
• Agri NPA - 23 % rising
• MP,RJ,CG,UP,PJ ,MH
Issues

Moral hazard - wilful default, credit culture
Domino effect on others states
Diversion of funds for non-agri purposes
Macro-economic impact - pvt liabilities -> public liabilities - fiscal pressure on state
Crowd out impact - state loan
Disproportionately benefit rich- better access, financial literacy , collateral, credit rating
X address real reason of distress
Bank bcom wary of lending - credit to farm decrease
Not target eligible beneficiary - CAG08 all ind waiver

Enhance loan repayment capacity- better price realization, farm credit reform, smooth supply & value chain
FPOs -aggregate, Storage capacity (PPP) -inst credit by workhouse receipt
I reach MSP & PMFBY
Long supply chains , info flow , d market disconnected /fragmented
PPP system of info abt harvest & sales info , choice of crop , cropping info
Agri credit reform - extend loan period (4y), loan restructuring , specific , region , crop based loan scheme

<1% Agri GDP - AG
Mechanization
• N agri Higher edu project - NAHEP

Agri edu

ICAR 's NAHEP quality higher edu - 1100 cr
Inst development Plans (IDPS) -to select parcipating AU
Center of advanced agri s & T (CAAST)
Innovation grant
Result monitoring & evaluation
Issues

Inadequate finance (state control) ,
faculty (inbreeding),
lack of networking & quality (internal & n linkage global ranking )

Inst deve
I productivity, understanding value chain of agri (farm input to market linkage)
Biotech , precision agri , ZBNF (SF)

Climate change

19-20 % GHG emission agri, largest
FAO- livestock supply chain 14-15% GHG

Marketing & transport

MH & BH ended APMC monopoly
FM amendment - Essential Commodities Act, Central APMC Act,
15% - 40% - F share in consumer price - AD
APMC- 1st sale only in apmc authorized mandi , not at farm gate, through auction - paternalistic state
Model APLM -unified m, intrastate trade- single point levy, E trading, storage infra, market com, State declare 'market yard' - market of N imp --? cap on market fees ie 2% fuits & vege & 1% grain, all power with office of director of agri marketing in state - right now with BOD of mandies
Model APMC act
GrAMS - 1900 rural Haat modernization & development through MGNREGA

To be linked by e-NAM & to be outside of APMC act

I participation in small & marginal farmer
Awareness , I Agri & Horti produce, an avenue for livestock market, Direct marketing for producer & consumer - aggregation platform for farmers

Issue

Price crash, Low Farm gate price
G intervention - Stock limit, x future trading, export restriction
APMC - cartelization, M segmentation - d buyer competition , geographical reach , high intermediation 15% - 40% - F share in consumer price - AD,
High License fees + APMC Cess & Taxes, High spatial price dispersion (es15-16 - lowest - highest - 3x US low - high difference - high logistic cost & fragmented m),
wastage- APMC no value addition in term of storage& transportation ,X storage, logistics, processing centre

‘Fork to Farm’ approach AD -FPO
Model APMC or APLM act
Market integration- Physical (railroad, us), Digital (e-nam)
Model Contract Farming and Services Act
Restructure Essential commodities act, - exempt stocking limit for exporters , processors , Mulit outlet retailer
Favourable & stable export policy
eNAM, GrAM , market Intelligence , Future trading, eRAKAM - digi spot trading market
Realtime wholesale Price Dissemination -AGMARKNET by FMC using APMC kisan mnadi , KVK data
Selling to food processing unit, FPO , Coop, direct channel from surplus to demand state.
Direct marketing by Fpo ,COOP, commodity trading - N Commodity derivative exchange,
warehouse , cold storage facili. (30-40 lakh tonnes short)
Market of N imp - azadpur mandi

MSP/FRP

23 crops CACP
Shanta Kumar- o 2.3%/6 % farmer get MSP benefit
Niti- o 10 % farmer know MSP before sowing
• Procurement wheat & rice only
• Limited geographical reach

• N Com of farmer- mandi to be within 5km , some exception in Fair avg quality, MSP > 50%
PM- AASHA
Pvt Participation , @Market Reforms

Export

Ind agri export is 2% of world < Indonesia & thailand
Growing at 9% (2007 -16)
Low value, raw, semi-processed export
Lack uniformity in quality , standardization
pro-farmer export policy
Agri Export Policy 18 - (stable trade policy ),

double agri export to 60bn by 2022
reach 100bn in next few year
diversify export basket , destination
boost high-value addition in agri export
Promote novel, indigenous, organic , ethinic product
Inst. Mech to pursue market access , tackling barrier
Deal with sanitary & phytosanitary issues
Integrate with global value chain
Challenge - ambitious target , proconsumer policy - cheap import hurt export interest , msp regime, wto disputes

Strategic rec -

Stable Policy - limiting to few commodities for food security , organic & processed no export restriction
APMC act reform , d mandi fees for export agri pro
Infra & logistic support - pre & post harvet handling facilities, storage, distribution, processing facilities, roads, railways,ww, world class exit point infra at port
Mega food park , integreted cold chain , state of art testing labs , inland transportation link, dedicated agri infra at port
Holistic approach - Sanitary & Phyto-Sanitary & tech barrier to trade (TBT)
Agancy like usfda - all aspect of agri production & trade , KVK for export oriented tech to farmer
Involvement of state - agri export in state export policy , identify state nodal agency for export promotion , cluster approach

Operational rec

Focus on cluster - agri export zone - value addition ,
Value added export - marketing , branding , quality & packaging standard, organic in NE in amul style , skill development , R&D for product development
Marketing & promoting brand india, EoDB & Digitalization
Pvt investment in export & logistics
Developing sea protocol , agri startup fund
quality regime - supply chain standard , SPS & TBT response , recognition of ind export inspection
R&D - pvt , public in packaging shelf life
• WF - UAE , saudi farm to port special eco zone - specific crop , haryana incentivizing high value product - basmati , soyabean

Insurance

• Pre-and Post-production stages-
• Market risks-
PMKBY

Wastage

PDS objectives, functioning, limitations, revamping;

• Shanta Kumar- 40-50% PDS food grains are siphoned from FCI godowns to black markets.

Farmer & labour

NCRB - 8000 f , 4500 agri labour - suicide
3 lakh by other sources
Avg income small & marginal HH- 80000
40% farmer - quit agri if alt opportunity
Feminization of agri
Rural distress - all ind rural wage growth declining
AG - solar tree on farm - 1 lakh /hectare yearly

Extension services

• < 1% agri gdp
• Kisan call center , Kisan suvidha center
• Submission on agri extension KY

Organic

• Sikkim 1st state
• ZBNF - Subhash Palekar
• Parampagat krishi yojana
• N Mission for sustainable agri KY

Food processing

• 8 % GVA in agri , 9 % GVA in manu
• SAMPADA (B & F linkage)

Pisciculture

• 2nd largest fish producer - 1.4 cr employed
• Potential - 8,118 km coastline, EEZ - 2mn km2
• 11 mn tonnes - 70 % inland
• Blue revolution
• Mariculture - seafood (Draft policy )
• Fastest growing sub sector under aquaculture
• Seed & feed security, area development
• Fisheries and Aquaculture Infrastructure Development Fund (FIDF) - employment , production , investment
• Dilip Kumar - draft N policy on inland fishing
• Restoring natural ecosystem river , wetland
• Himalayan & NE region, Management by State fisheries dept
• Deep sea fishing scheme
• N policy on Marine Fishing , 2007 - LOP system for EEZ removed , prohibited use of LED & other light , trawling , gill nelting , tracking device , fisherman census
• Dr B Meenakumari - Buffer zone & scientific use of fishing net
• On par with agri in term of subsidy , input support , power tarif -insurance , credit , tax benefit
• Revival of cooperative
• Diversification of sources
• Special Insurance sys - flood plain , upland water body, canal saline
• Productivity augmentation - quality seed & feed

direct and indirect farm subsidies

Subsidy on sugarcane export

AD- DFI by 2022

Recognize Agri as Enterprise - farm owner (cultivators to managers) , outsource farm ops to VPOs, FPOs- resource use efficiency , reduce cost of cultivation - adopt NITI Model land leasing Act.
Expand mandate of Farm -on & off farm acts, from Food security to generate raw material for industrial enterprise - chemical , energy , fibre, food, medicine , construction
Water determining factor of production - additional source (AIBP etc), efficient use - micro , sustainable grnd water usage (recharge), agro climatic cropping
Market reform - fork to farm - monetize produce (VC by farmer), logistic , processing, market -GraMs ,export , APLM , agri value sys AVS (farm to market)
Liberalize definition of farmer - include cultivators, lesse farmer , share cropper- online DB- recognize farmer & avail benefit of govt sys
Risk Management at all stage - pre-post production - PMFBY, Meteorological advisory service (Karnataka model), Market Risk- (Price & Demand forecast), export & import duty structure benefitting farmer
Inst arrangement & Union Agri min -

reorganize division -focus on new aspect - agri logistics, investment in cap formation , primary processing
3 tier planning & review mech - N,S ,District
Review policy fw - trade policy , budgetary allocation , progress in DFI etc

Rainfed areas

55% gross cropped area
88% pulses , 40% rice
64% cattle
Low income, low crop yield , poverty , suicide , fragiel ecologically (1/3 degraaded), govt policies not conducive
Policy bias - low procurement , lower investment on infra, scheme not framed
• Rainfed area development - integrated farming sys
• N mission for sustainable agriculture NMSA 1/8 NAPCC
• Wf - seprate policy orientation , enhacne productivity - local agro climatic croping , focus on livestock - manure, milk , less water

Major crops cropping patterns in various parts of the country,

Millets
Rice
Wheat
Horticulture

Operation Green (MoFPI) -CSS -TOPS
2nd largest producer of fruits & vegetable
Area increased 2.6/y & production - 5%
• Stabilize supply of TOP, year round availability w/o volatility (price stabilization )
• Identify top producer area & streghten them
• FPO - promotion , linking to market
• Reduction of post-harvest loss - farm gate Infra , agro- logistics , storage capacity & linking
• I food processing - linking SCM
• Setting market intelligence network - collect & collate demand & supply
• Indo-Israel Cooperation - new tech of production & supply of quality planting materia

Tea
Sugarcane
Jute

• Golden Fibre

Oilseeds
Allied Sector

Gaining ground, shift in consumption pattern
Integrated farming sys-horticulture, livestock, beekeeping
Rashtriya krishi vikas yojana - remunerative Approach for agri & allied sector (RKVY - RAFTAAR)

Agroforestry

• National Agro-Forestry Policy
• Agriculture Forestry Submission Har Medh Par Pedh"
• Reconstituted N bamboo mission - Ind Forest Act , 1927 amended to remove bamboo from definition of tree

Bee keeping

• Integrated Bee Keeping Development Centres (IBDC)

Milk

• Largest producer
• Global skimmed milk price falling

• Livestock mission

• Nm bovine productivity
• National Program on bovine breeding and dairy development
• National Dairy Plan, Ops White Flood
• Rashtriya Gokul Mission - genetic makeup, i milk producti
• Dairy Processing and Infra Development Fund
• Dairy Entrepreneurship Development Scheme

Coffee

PM Kisan

Interim Budget 19-20 , Central sector scheme
Input support - rs 6000/y to 14.5 cr farmer families irrespective of landholding
State/ut identifies , list published in vlg (trans)
PM kisan portal
DIT - farmer agency to choose input
Minimal Supply - demand imbalance like MSP
Dependence on informal , ML reduce
Boost rural consumption demand, social security , efficient than loan waiver
Issues

• Insufficient amount - only 5-8% of income level -Telangana (rythu) & Orrisa (Kalia) have larger
• X landless lanbour , tenets, sharecroppers etc
• Poor land records - not updated, digitalized
• Delayed disbursement - mgnrega
• Rural banking infra - x outreach & last mile connect.
• Inflationary - local price
Induce fragmentation
Implementation problem- family as unit not HH

• Inst infra for identification of beneficiary & land record
• Comprehensive SS package - health , life , accident insurance
• Pave way for MBI for farmer in future
• Agri have diverse problem
• PJ - scarcity of water
• BR- poor supply chain , lack of infra
• NE - jhum culivation ,
• MH -
• Need to find synergy & deal challenge in holistic manner

PM Asha

• Price Support Scheme (PSS): -physical procurement, NAFED, FCI, Central Nodal Agency (pulse, copra , oilseed), expenditure & loss on center
• Price Deficiency Payment Scheme (PDPS): - center pay difference (MSP & model /selling price) DBT, for farmer selling notified crop in notified mandi for notified time
• Pilot of Private Procurement and Stockiest Scheme (PPSS):-in select district where pvt player procure at MSP , when market price below MSP- pvt partner compenseated through service charge - 15% MSP
Issues

• Trader cartel - MP bhavantar bhugtan yojana - depressing price in mandis - forcing farmer to sell at lower price & pocketing compensation
• Fund for PSS challenge to centre
• Shortage of ware house & storage infra- Due to ECA

Solve gap in procurement, falling price , distress sale, remunerative prices,
I diversification - d soil& water pressure,
• I productivity ,post-harvest management, market infra

PMFBY

• 2% Kharif, 1.5% Rabi, 5% - horticultural
• 25 % of claim amnt immediate JAM ?
• tech - drone , sat, smart phone
• Area approach, x upper limit on govt subsidy
• 12% interest on insurance company for delay
• D, S, N level GRM
Issues

• High premium charged:
• high claim ratios in certain states
• Declining farmer enrolments:
• Pvt companies concentrated where - profit high
• Delayed compensation ,
• Poor capacity to deliver -x cap. augmentation by pvt
• Inadequate data collection
• Issue with notification of crop done by state

Governance - I capacity of state govt, I penetration by awareness IEC, improve GRM, better regulatory FW- yield, price , risk ect
• Tech & Infra - remote sensing , drone , sat image , land digitalization , 360 degree approach , insurance include land , water management
• Other - land lease laws , dynamic land policy , include women farmer , sharcropper

e-technology in the aid of farmers
issues of buffer

stocks and food security
• FCI stock 6 year highest food grain - govt aim to increase allocation to BPL
• FCI (nodal agency under MCA, F,PD) - procure @MSP on open ended basis (uniform quality standard) -storage & movement - surplus to consuming state , FCI godown , public distribution - open market sale during lean season in deficit region
• Eco cost - acquisition cost of food @ MSP
• Procurement incidentals (labour & transport , godown rental)
• Distribution cost - freight , handling , storage & interest changes , loss during storage
• Eco cost & central issue price differential (reimbursed by govt)
Issues

• Buffer stock excess , lack of storage - cover & plinth system - rain , pilferage
• Food inflation , poor quality of grain & higher wastage- Lack of irradiation
• High cost, countercyclic procurement
• Corruption- SK-60 % PDS grain siphoned from godown
• Marginalization of pvt trade - even in punjab
• Uncompetative export (rising minimum export price & putting ceiling limits on export check food inflation)

• Wf- PM AASHA , PM - KISAN

• Decentralized procurement - state procure & distribute
• Restructuring FCI as reco. by Shanta kumar, 2014
• Govt procurement in N state , FCI focus on eastern state
• Negotiable warehouse receipts (NWRS)
• DBT to farmer (PDS)
• Proactive liquidation of stock
• Buffer stock - 10 mn tonnes - import , buy option /future in commodity mark

Technology missions;
economics of animal-rearing.
FPI & related scope and significance, location, upstream and
downstream requirements, supply chain management

Shruti

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