Mains Paper 3: Agriculture | Issues related to direct and indirect farm subsidies and minimum support prices
From UPSC perspective, the following things are important:
Prelims level: Direct Benefit Transfer, Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi, Sinchayee Yojana (PMKSY), National Agricultural Market, e-NAM
Mains level: Article has given 5 action points for 5 fronts in Agricultural sector. Please note down those points which can be used as suggestions to improve agricultural sector
- Last month, the NITI Aayog released the Three Year Action Agenda (TYAA, a roadmap for reforming the various sectors of the economy.
- But it does not recognise the role of trade policy in agriculture, and is silent on money-guzzling food and fertiliser subsidies
The TYAA basically talks of action pertaining to
- Increasing productivity of land and water
- Reforming agri-markets on the lines of e-NAM
- Reforming tenancy laws
- Relief measures during natural disasters.
However TYAA does not talk about
- Prioritising policy actions
- Role of trade policy in agriculture
- Reforming the massive system of food and fertiliser subsidies.
Urgent action is needed on five fronts
- Improve the profitability of cultivation by “getting markets right”
- Attempts to reform the APMC markets, and Agricultural Produce and Livestock Marketing Act, 2017, have not achieved much success.
- e-NAM scheme, has not succeeded in its endeavour so far.
- Open up exports of all agri-products, without any restrictions
- Allow private trade to build global value chains, keeping the Essential Commodities Act in abeyance.
- It needs to invest in water
- The Pradhan Mantri Krishi Sinchayee Yojana is mandated to complete 99 irrigation projects by 2019
- NABARD, with Rs 40,000 crore as Long-Term Irrigation Fund, is to help states in completing these projects
- But open canal systems with flood irrigation don’t give high water-use efficiency.Solution
- Accord higher priority to micro-irrigation (drip and sprinklers);
- Israel and the US could be good examples to follow
- Direct Benefit Transfer (DBT) of food and fertiliser subsidies can release resources for investments
- Rs 30,000 to Rs 50,000 crores can be saved through DBT, which can be invested in water resources and upgrading marketing infrastructure.
- It should ensure that the new Pradhan Mantri Fasal Bima Yojana (PMFBY) delivers compensation to farmers in time
- These lacunae can be fixed through modern technology and better governance
- It should free up land lease markets.
- China allows land lease for 30 years so that corporate bodies can work with farmers, bringing in their best expertise, inputs and investments.
Direct Benefit Transfer: Refer Civilsdaily
National Agricultural Market: Refer Civilsdaily
What is e-NAM?: Refer Civilsdaily
Pradhan Mantri Fasal Bima Yojana: Refer Civilsdaily
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): Refer Civilsdaily