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GS Paper: Agriculture and related issues

  • India needs a carbon policy for agriculture

    Context

    The UK is set to host the 26th UN Climate Change Conference of the Parties (CoP26) in Glasgow from October 31 to November 12 with a view to accelerate action towards the Paris Agreement’s goals. The focus should be on climate finance and transfer of green technologies at low cost.

    Cause of concern for India

    • According to the Global Carbon Atlas, India ranks third in total greenhouse gas emissions by emitting annually around 2.6 billion tonnes (Bt) CO2eq, preceded by China (10 Bt CO2eq) and the United States (5.4 Bt CO2eq), and followed by Russia (1.7Bt) and Japan (1.2 Bt).
    • India ranked seventh on the list of countries most affected due to extreme weather events, incurring losses of $69 billion (in PPP) in 2019 (Germanwatch, 2021).
    • The fact that 22 of the 30 most polluted cities in the world are in India is a major cause of concern.
    • Delhi is the world’s most polluted capital as per the World Air Quality Report, 2020.

    Issues raised in global negotiation on climate change

    • Nations are still quibbling about historical global emitters and who should take the blame and fix it.
    • Global negotiations on climate change often talk about emissions on a per capita basis and the emission intensity of GDP.
    • Per capita emission: Of the top five absolute emitters, the US has the highest per capita emissions (15.24 tonnes), followed by Russia (11.12 tonnes).
    • India’s per capita emissions is just 1.8 tonnes, significantly lower than the world average of 4.4 tonnes per capita.
    • If one takes emissions per unit of GDP, of the top five absolute emitters, China ranks first with 0.486 kg per 2017 PPP $ of GDP, which is very close to Russia at 0.411 kg per 2017 PPP $ of GDP.
    • India is slightly above the world average of 0.26 (kg per 2017 PPP $ of GDP) at 0.27 kg, while the USA is at 0.25, and Japan at 0.21.
    • In our Nationally Determined Contributions (NDCs) submitted in 2016, India committed to “reduce emission intensity of its GDP by 33 to 35 per cent by 2030 from 2005 level.”

    Sector-wise emission and share of agriculture in it

    • Global emissions show that electricity and heat production and agriculture, forestry and other land use make up 50 per cent of the emissions.
    • But the emissions pie in India owes its largest chunk (44 per cent) to the energy sector, followed by the manufacturing and construction sector (18 per cent), and agriculture, forestry and land use sectors (14 per cent), with the remaining being shared by the transport, industrial processes and waste sectors.
    • The share of agriculture in total emissions has gradually declined from 28 per cent in 1994 to 14 per cent in 2016.
    • However, in absolute terms, emissions from agriculture have increased to about 650 Mt CO2 in 2018, which is similar to China’s emissions from agriculture.
    • Agricultural emissions in India are primarily from the livestock sector (54.6 per cent) in the form of methane emissions due to enteric fermentation and the use of nitrogenous fertilisers in agricultural soils (19 per cent) which emit nitrous oxides; rice cultivation (17.5 per cent) in anaerobic conditions accounts for a major portion of agricultural emissions followed by livestock management (6.9 per cent) and burning of crop residues (2.1 per cent).

    Way forward: Carbon policy for agriculture

    • Reward farmers through carbon credit: A carbon policy for agriculture must aim not only to reduce its emissions but also reward farmers through carbon credits which should be globally tradable.
    • Focus on livestock: With the world’s largest livestock population (537 million), India needs better feeding practices with smaller numbers of cattle by raising their productivity.
    • Switch areas from rice to maize: While direct-seeded rice and alternative wet and dry practices can reduce the carbon footprint in rice fields, the real solution lies in switching areas from rice to maize or other less water-guzzling crops.
    • Efficient fertiliser use: Agricultural soils are the largest single source of nitrous oxide (N2O) emissions in the national inventory.
    • Nitrous oxide emissions from use of nitrogen-fertiliser increased by approximately 358 per cent during 1980-81 to 2014-15.
    • An alternative for better and efficient fertiliser use would be to promote fertigation and subsidise soluble fertilisers.
    • Incentives and subsidies: The government should incentivise and give subsidies on drips for fertigation, switching away from rice to corn or less water-intensive crops, and promoting soluble fertilisers at the same rate of subsidy as granular urea.

    Consider the question “Agriculture sector is one of the significant contributors to the greenhouse gas emissions. This underscores the importance of carbon policy for agriculture in India. In this context, suggest the steps needed to be taken under the policy.” 

    Conclusion

    Carbon policy for agriculture in India would help it meet its goals in reducing emissions while making agriculture climate-resilient.

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    Back2Basics: Anaerobic conditions

    • An anaerobic process in which organic food is converted into simpler compounds, and chemical energy (ATP) is produced. Certain types use the electron transport chain system to pass the electrons to the final electron acceptor, which may be an inorganic or an organic compound, but not oxygen.

  • Revealing India’s actual farmer population

    Context

    Depending on the source, there is a wide variation in the number of farmers in India.

    What is the extent of variation?

    • The last Agriculture Census for 2015-16 placed the total “operational holdings” in India at 146.45 million.
    • The Pradhan Mantri-Kisan Samman Nidhi (PM-Kisan) scheme has 110.94 million beneficiaries.
    • National Statistical Office’s Situation Assessment of Agricultural Households (SAAH) report for 2018-19 pegs the country’s “agricultural households” at 93.09 million.

    What explains the variation?

    • This wide variation has largely to do with methodology.
    • The Agriculture Census looks at any land used even partly for agricultural production, the land does not have to be owned by that person (“cultivator”), who needn’t also belong to an “agricultural household”.
    • The SAAH report, on the other hand, considers only the operational holdings of agricultural households.
    • Members of a household may farm different lands.
    • The SAAH takes all these lands as a single production unit.
    • It does not count multiple holdings if operated by individuals living together and sharing a common kitchen.
    • Accounting for only “agricultural households”, while not distinguishing multiple operating holdings within them, brings down India’s official farmer numbers to just over 93 million.
    • Expansive definition: SAAH’s definition of “agricultural households” is expansive.
    • It covers households having at least one member self-employed in agriculture and whose annual value of produce exceeds Rs 4,000.
    • Such self-employment needs to be for only 30 days or more during the survey reference period of six months.

    So, what is the actual number of farmers?

    • The estimate of actual number is based on the following methodology.
    • The SAAH report gives data on agricultural household income from farm and non-farm sources, both state-wise and across different land-possessed/operational holding size classes.
    • From the above data, we can categorise “full-time/regular” farmers as those households whose net receipts from farming are at least 50 per cent of their total income from all sources.
    • The SAAH report also has state-wise estimates of agricultural households for each land-possessed size class.
    • By taking only those size classes in which the dependence ratios are higher than (or close to) 50 per cent, and adding up the corresponding estimated number of agricultural households, we are able to arrive at the total “full-time/regular” farmers for each state.
    • Following the above methodology, India’s “serious” farmer population, in turn, adds up to 36.1 million, which is hardly 39 per cent of the SAAH estimate.

    Policy implications of having actual numbers of farmers significantly lower than estimated

    • If the actual number of farmers deriving a significant share of their income from agriculture per se is only 40 million a host of policy implications follow.
    • Targeted policy: One must recognise that farming is a specialised profession like any other.
    • “Agriculture policy” should, then, target those who can and genuinely depend on farming as a means of livelihood.
    • Minimum support prices, government procurement, agricultural market reforms, fertiliser and other input subsidies, Kisan Credit Card loans, crop insurance or export-import policy on farm commodities will matter mainly to “full-time/regular” farmers.
    • Land size matters: The SAAH report reveals that the 50 per cent farm income dependence threshold is crossed at an all-India level only when the holding size exceeds one hectare or 2.5 acres.
    • This is clearly the minimum land required for farming to be viable, which about 70 per cent of agricultural households in the country do not possess.
    • Policy for labourers: What should be done for this 70 per cent, who are effectively labourers and not farmers?
    • Their problems cannot be addressed through “agriculture policy”.
    • The scope for value-addition and employment can be more outside than on the farm — be it in aggregation, grading, packaging, transporting, processing, warehousing and retailing of produce or supply of inputs and services to farmers.

    Consider the question “What explains the wide variation in the estimates of the number of farmers in India? What are the implications of such variations for agriculture policy?”

    Conclusion

    Agriculture policy should aim not only at increasing farm incomes but also adding value to produce outside and closer to the farms. A more sustainable solution lies in reimagining agriculture beyond the farm.

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  • PM-KUSUM

    Context

    The Union Minister of Power, New and Renewable Energy recently reviewed the progress of the PM-KUSUM scheme and reaffirmed the government’s commitment to accelerating solar pump adoption.

    Background

    • It was launched in 2019.
    • PM-KUSUM aims to help farmers access reliable day-time solar power for irrigation, reduce power subsidies, and decarbonise agriculture.
    • PM-KUSUM provides farmers with incentives to install solar power pumps and plants in their fields.
    • Three deployment models: Pumps come in three models: off-grid solar pumps solarised agricultural feeders, or grid-connected pumps.
    • Off-grid pumps have been the most popular, but the nearly 2,80,000 systems deployed fall far short of the scheme’s target of two million by 2022.
    • The other two models are also worth scaling up for they allow farmers to earn additional income by selling solar power to discoms, and discoms to procure cheap power close to centres of consumption.

    Challenges

    • Awareness challenge: Barriers to adoption include limited awareness about solar pumps.
    • Upfront contribution: The other barrier includes farmers’ inability to pay their upfront contribution.
    • Limited progress on two models: Progress on the other two models has been rather poor due to regulatory, financial, operational and technical challenges.

    Suggestions

    • Extend the scheme’s timelines: Most Indian discoms have a surplus of contracted generation capacity and are wary of procuring more power in the short term.
    • Extending PM-KUSUM’s timelines beyond 2022 would allow discoms to align the scheme with their power purchase planning.
    • Level playing field: Discoms often find utility-scale solar cheaper than distributed solar (under the scheme) due to the latter’s higher costs and the loss of locational advantage due to waived inter-State transmission system (ISTS) charges.
    • To tackle the bias against distributed solar, we need to address counter-party risks and grid-unavailability risks at distribution substations, standardise tariff determination to reflect the higher costs of distributed power plants, and do away with the waiver of ISTS charges for solar plants.
    • Streamline regulation: We need to streamline land regulations through inter-departmental coordination.
    •  States should constitute steering committees comprising members from all relevant departments for this purpose.
    • Financing farmers contribution:  There is a need to support innovative solutions for financing farmers’ contributions.
    • Many farmers struggle to pay 30-40% of upfront costs in compliance with scheme requirements.
    • To ease the financial burden on farmers, we need out-of-the-box solutions.
    • Grid-connected solar pumps: Current obstacles to their adoption include concerns about their economic viability in the presence of high farm subsidies and farmers’ potential unwillingness to feed in surplus power when selling water or irrigating extra land are more attractive prospects.
    • Further, the grid-connected model requires pumps to be metered and billed for accounting purposes but suffers from a lack of trust between farmers and discoms.
    • Adopting solutions like smart meters and smart transformers and engaging with farmers can build trust and address some operational challenges.

    Conclusion

    These measures, combined with other agriculture schemes and complemented by intensive awareness campaigns, could give a much-needed boost to PM-KUSUM.

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  • Agri exports in India

    Context

    The Indian government has been encouraging agricultural exports to meet an ambitious target of $60bn by 2022.

    India’s agri-exports

    • The Ministry of Food Processing Industries shows that the contribution of agricultural and processed food products in India’s total exports is 11%.
    • Primary processed agricultural commodities form the majority share.
    • India’s export earnings will increase by focusing more on value-added processed food products rather than primary processed agricultural commodities (Siraj Hussain, 2021).
    • From 2015-16 to 2019-20, the value of agricultural and processed food increased significantly from $17.8bn to $20.65bn.
    • The Indian agricultural economy is shifting from primary to secondary agriculture where the focus is more on developing various processed foods.

    Changes in India’s agricultural export basket

    • Traditionally, Basmati rice is one of the top export commodities.
    • However, now there is an unusual spike in the export of non-basmati rice.
    • In 2020-21, India exported 13.09 million tonnes of non-basmati rice ($4.8bn), up from an average 6.9 million tonnes ($2.7bn) in the previous five years.
    • Indian buffalo meat is seeing a strong demand in international markets due to its lean character and near organic nature.
    • The export potential of buffalo meat is tremendous, especially in countries like Vietnam, Hong Kong and Indonesia.

    Challenges in Increasing agri-export

    • Lack of comparative advantage: The export of processed food products has not been growing fast enough because India lacks comparative advantage in many items.
    •  Domestic prices of processed food products are much higher compared to the world reference prices.
    • Non-tariff measures: The exporters of processed food confront difficulties and non-tariff measures imposed by other countries on Indian exports (Siraj Hussain, 2021).
    • Some of these include mandatory pre-shipment examination by the Export Inspection Agency being lengthy and costly.
    • Compulsory spice board certification being needed even for ready-to-eat products.
    • Lack of strategic planning of exports by most State governments.
    • Lack of a predictable and consistent agricultural policy discouraging investments by the private sector.
    • Prohibition of import of meat- and dairy based-products in most of the developed countries.
    • Withdrawal of the Generalised System of Preference by the U.S. for import of processed food from India.

    Consider the question “What are the challenges facing export of processed foods from India? Suggest the way forward.”

    Way forward

    • The main objective of the Agriculture Export Policy is to diversify and expand the export basket so that the export of higher value items, including perishables and processed food, be increased
    • Support to industry: The policy needs to nurture food processing companies, ensuring low cost of production and global food quality standards, and creating a supportive environment to promote export of processed food.
    • Focus on reputed brands: Reputed Indian brands should be encouraged to export processed foods globally as they can comply with the global standard of codex.
    • Indian companies should focus on cost competitiveness, global food quality standards, technology, and tap the global processed food export market.

    Conclusion

    India has competitive advantages in various agricultural commodities which can be passed onto processed foods. It has the potential to become a global leader in the food processing sector.

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  • How India’s food systems must respond to the climate crisis

    Context

    This month, the UN Secretary-General will convene the Food Systems Summit. There is a proposal to have an International Panel on Food and Nutritional Security (IPFN) — an “IPCC for food,” similar to the panel on climate change.

    Issues with India’s agriculture?

    • What is a food system? According to the Food and Agriculture Organisation (FAO), food systems encompass the entire range of actors involved in the production, aggregation, processing, distribution, consumption and disposal of food products.
    • Effects of Green Revolution: The Green Revolution succeeded in making India food sufficient, however, it also led to water-logging, soil erosion, groundwater depletion and the unsustainability of agriculture.
    • Deficit mindset: Current policies are still based on the “deficit” mindset of the 1960s.
    • Biased policies: The procurement, subsidies and water policies are biased towards rice and wheat.
    • Three crops (rice, wheat and sugarcane) corner 75 to 80 per cent of irrigated water.
    • Lack of diversification: Diversification of cropping patterns towards millets, pulses, oilseeds, horticulture is needed for more equal distribution of water, sustainable and climate-resilient agriculture.

    Issues with various elements of India’s food system

    1) Changes needed in India’s agriculture

    • The narrative of Indian agriculture has to be changed towards more diversified high-value production, better remunerative prices and farm incomes.
    • Inclusive: It must be inclusive in terms of women and small farmers.
    • Similarly, women’s empowerment is important particularly for raising incomes and nutrition.
    • Women’s cooperatives and groups like Kudumbashree in Kerala would be helpful.
    • Small farmers require special support, public goods and links to input and output markets.
    • Better remunerative prices: Farmer producer organisations help get better prices for inputs and outputs for small-holders.
    • The ITC’s E-Choupal is an example of technology benefiting small farmers.
    • Innovation: One of the successful examples of a value chain that helped small-holders, women and consumers is Amul (Anand Milk Union Ltd) created by Verghese Kurien.
    • Such innovations are needed in other activities of food systems.

    2) Hunger and malnutrition in India

    • The NFHS-5 shows that under-nutrition has not declined in many states even in 2019-20. Similarly, obesity is also rising.
    • A food systems approach should focus more on the issues of undernutrition and obesity.
    • Safe and healthy diversified diets are needed for sustainable food systems.
    • The EAT-Lancet diet, which recommends a healthy and sustainable diet, is not affordable for the majority of the population in India.
    • Animal-sourced foods are still needed for countries like India. For instance, per capita consumption of meat is still below 10 kg in India as compared to 60 to 70 kg in the US and Europe.

    3) Ensuring sustainability of food system

    • Estimates show that the food sector emits around 30 per cent of the world’s greenhouse gases.
    • Sustainability has to be achieved in production, value chains and consumption.
    • How to achieve sustainability? Climate-resilient cropping patterns have to be promoted.
    • Instead of giving input subsidies, cash transfers can be given to farmers for sustainable agriculture.

    4) Health and social protection

    • Food systems also need health infrastructure.
    • The Covid-19 pandemic has exposed the weak health infrastructure in countries like India.
    • Inclusive food systems need strong social protection programmes.
    • India has long experience in these programmes. Strengthening India’s National Rural Employment Guarantee Act, public distribution system (PDS), nutrition programmes like ICDS, mid-day meal programmes, can improve income, livelihoods and nutrition for the poor and vulnerable groups.

    5) Role of non-agriculture

    • Some economists like T N Srinivasan argued that the solution for problems in agriculture was in non-agriculture.
    • Reduce pressure on agriculture: Therefore, labour-intensive manufacturing and services can reduce pressure on agriculture.
    • Income from agriculture is not sufficient for smallholders and informal workers.
    • Strengthening rural MSMEs and food processing is part of the solution.

    Conclusion

    India should also aim for a food systems transformation, which can be inclusive and sustainable, ensure growing farm incomes and nutrition security.

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  • The dangers of India’s palm oil push

    Context

    On August 15, Prime Minister Narendra Modi announced a support of Rs 11,000 crore to incentivise oil palm production.

    National Mission on Edible Oils and Oil Palm (NMEO-OP)

    • Under NMEO-OP, the government intends to bring an additional 6.5 lakh hectares under oil palm cultivation.
    • The agro-business industry has said the move will help its growth and reduce the country’s dependence on palm oil imports, especially from Indonesia and Malaysia.
    • Indonesia has emerged as a significant palm oil hub in the last decade and has overtaken Malaysia.
    • The two countries produce 80 per cent of global oil palm.
    • Indonesia exports more than 80 per cent of its production.

    Reducing the import dependence

    • India imported 18.41 million tonnes of vegetable oil in 2018.
    • The National Mission on Oilseeds and Oil Palm are part of the government’s efforts to reduce the dependence on vegetable oil production.
    • The Yellow Revolution of the 1990s led to a rise in oilseeds production.
    • Though there has been a continuous increase in the production of diverse oilseeds — groundnut, rapeseed and mustard, soybean — that has not matched the increasing demand.
    • Most of these oilseeds are grown in rain-fed agriculture areas of Gujarat, Andhra Pradesh, Haryana, Karnataka, Rajasthan, Madhya Pradesh, Tamil Nadu and Uttar Pradesh.

    Issues with oil palm cultivation in India

    • Impact on biodiversity: Studies on agrarian change in Southeast Asia have shown that increasing oil palm plantations is a major reason for the region’s declining biodiversity. 
    • The Northeast is recognised as the home of around 850 bird species, it is also home to citrus fruits, it is rich in medicinal plants and harbours rare plants and herbs.
    • Above all, it has 51 types of forests.
    • Studies conducted by the government have also highlighted the Northeast’s rich biodiversity.
    • The palm oil policy could destroy this richness of the region.
    • To preserve the environment and biodiversity, Indonesia and Sri Lanka have already started putting restrictions on palm tree plantation.
    • Water pollution: Along with adversely impacting the country’s biodiversity, it has led to increasing water pollution.
    • Climate change: The decreasing forest cover has significant implications with respect to increasing carbon emission levels and contributing to climate change.
    • Against the notion of self-reliance: Such initiatives are also against the notion of community self-reliance:
    • The initial state support for such a crop results in a major and quick shift in the existing cropping pattern that are not always in sync with the agro-ecological conditions and food requirements of the region.
    • Against commitment to sustainable agriculture: The policy also contradicts the government’s commitments under the National Mission for Sustainable Agriculture.
    • The mission aims at “Making agriculture more productive, sustainable, remunerative and climate resilient by promoting location specific integrated/composite farming systems.”
    • The palm oil mission, instead, aims at achieving complete transformation of the farming system of Northeast India.
    • Studies also show that in case of variations in global palm oil prices, households dependent on palm oil cultivation become vulnerable.

    Consider the question “India depend on import for its vegetable oil requirements to a larger extent. What are the steps taken by the government to reduce the dependence? Can oil palm cultivation in India be a solution?”

    Conclusion

    Similar environmental and political outcomes cannot be ruled out in India. Apart from the possible hazardous impacts in Northeast India, such trends could have negative implications on farmer incomes, health, and food security in other parts of the country in the long run.

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  • Liberalizing Trade in Agriculture Machinery

    Context

    On July 15, the Centre issued a notification moving power tillers (PT) and their components from the “free” to “restricted” category indicating a clear intent to provide protection to the domestic industry.

    How heterodox opening policies affects farming

    Heterodox opening policies, being open on the export side while being closed on the import side, have long-term unintended consequences.

    • Productivity loss: One impact of heterodox policies is subpar mechanisation and productivity loss in agriculture.
    • India’s mechanisation coverage is around 40-45 per cent, compared to 90 per cent in developed countries.
    • At present, only Punjab, Haryana and western UP have mechanisation rates between 70 and 80 per cent whereas in eastern and southern states it is between 35 and 45 per cent, with even smaller coverage in North-Eastern states.
    • Comparatively high tariffs on agricultural machinery, placement under restricted trade hits the cog in the wheel of mechanisation.
    • Uncertainty and lower trade: A shift to restricted category and frequently changing tariffs engenders uncertainty and lowers trade.
    • Disincentivise innovation: Such policies also disincentivises domestic machine manufacturers to invest and innovate — the perils of protection.

    What India can learn from Bangladesh on farm mechanisation

    • Starting lower, Bangladesh overtook India in mechanisation by 2006.
    • A perfect example of orthodox opening in the late 1980s, Bangladesh removed import bans on Power Tiller and other machinery like diesel engines.
    • By 1995, PT were made duty free and credit support was provided for purchases.
    • Studies have credited PT in increasing the rice yield in Bangladeh, which grew 2.1 per cent annually from 1990, compared to 1.6 per cent between 1960 and 1989.

    Way forward

    If productivity in agriculture and incomes of farmers were to go up significantly, Indian agriculture must hit the mechanisation frontier.

    • Liberal and Stable trade policies: Liberal and stable trade policies will increase access, competition will expand varieties and bring down the prices.
    • New trade economics teaches us that farmers would be successful in trading or accessing markets only when highly productive, which beckons large scale and intensive mechanisation.
    • Credit support: Bangladesh also shows the role of complementary policies such as credit support.
    • Once the farmers achieve sufficiently high productivity, they can access markets and even integrate with global value chains (GVC) if allowed by policy as intended in the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.

    Conclusion

    Liberal trade in machinery presents an opportunity to access distant and international markets. The key is to be both ways open.

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  • Sub-Mission on Fodder and Feed

    Context

    The government recently announced a Sub-Mission on Fodder and Feed.

    Why availability of good and affordable quality feed and fodder matters

    • A study by the Indian Grassland and Fodder Research Institute has observed that for every 100 kg of feed required, India is short of 23.4 kg of dry fodder, 11.24 kg of green fodder, and 28.9 kg of concentrate feed.
    • Low milk productivity: The lack of good quality feed and fodder impacts the productivity levels of cattle.
    • This is one of the chief reasons why Indian livestock’s milk productivity is 20%-60% lower than the global average.
    • High input cost: If we break down the input costs, we find that feed constitutes 60%-70% of milk production costs.
    • When the National Livestock Mission was launched in 2014, it focused on supporting farmers in producing fodder from non-forest wasteland/grassland, and cultivation of coarse grains.
    • However, this model could not sustain fodder availability due to a lack of backward and forward linkages in the value chain.

    Why Sub-Mission on Fodder and Feed is significant

    • As about 200 million Indians are involved in dairy and livestock farming, the scheme is important from the perspective of poverty alleviation.
    • The Sub-Mission on Fodder and Feed intends to create a network of entrepreneurs who will make silage (the hub) and sell them directly to the farmers (the spoke).
    • Bringing down the input cost: The large-scale production of silage will bring down the input cost for farmers since silage is much cheaper than concentrate feed.
    • Objective: The revised scheme has been designed with the objectives of increasing productivity, reducing input costs, and doing away with middlemen (who usually take a huge cut).
    • Since India has a livestock population of 535.78 million, effective implementation of this scheme will play a major role in increasing the return on investment for our farmers.

    About the Sub-Mission on Fodder and Feed

    • The scheme will provide 50% capital subsidy up to ₹50 lakh towards project cost to the beneficiary for infrastructure development and for procuring machinery for value addition in feed such as hay/silage/total mixed ration.
    • Private entrepreneurs, self-help groups, farmer producer organizations, dairy cooperative societies, and Section 8 companies (NGOs) can avail themselves of the benefits under this scheme.
    • The scheme can be used for covering the cost of infrastructure/machinery such as bailing units, harvester, chaff cutter, sheds, etc.

    Challenges and solution

    • Seasonal availability: A major challenge in the feed sector emanates from the fact that good-quality green fodder is only available for about three months during the year.
    • Fermenting green fodder: Ideal solution would be to ferment green fodder and convert it into silage.
    • Hence, under the fodder entrepreneurship program, farmers will receive subsidies and incentives to create a consistent supply chain of feed throughout the year.

    Conclusion

    The mission will help marginal farmers reduce their input costs and help them in increasing the return on capital employed.

  • What is National Farmers Database?

    The Centre’s new National Farmers Database will only include land-owning farmers for now as it will be linked to digitized land records.

    National Farmers Database

    • The Central government had proposed an Agristack initiative to create a digital database that focuses on farmers and the agricultural sector.
    • As part of the first step of this initiative, the government has initiated a farmers database that would serve as the core of the Agristack.
    • The database would be linked to the digital land record management system and would thus only include farmers who were legal owners of agricultural land.
    • The database would facilitate online single sign-on facilities for universal access and usher in proactive and personalized services to farmers such as DBT, soil and plant health advisories, weather advisories
    • It would also facilitate seamless credit & insurance, seeds, fertilizers, and pesticide-related information.

    Need for such database

    • India has 140 million operational farmland holdings.
    • The availability of a database would serve an important role in the formulation of evidence-based policies for the agricultural sector.
    • Also, the government can make use of the database for targeted service delivery with higher efficiency and in a focused and time-bound manner.
    • The database could be used to select beneficiaries of government schemes.
    • The availability of data will make it possible to implement digital technologies like AI/Machine Learning, IoT in the agricultural domain, thus opening up the sector to immense opportunities for improvement in productivity.

    Back2Basics: AgriStack Initiative

    • The AgriStack is a collection of technologies and digital databases proposed by the Central Government focusing on India’s farmers and the agricultural sector.
    • The central government has claimed that these new databases are being built to primarily tackle issues such as poor access to credit and wastage in the agricultural supply chain.
    • Under AgriStack’, the government aims to provide ‘required data sets’ of farmers’ personal information to Microsoft to develop a farmer interface for ‘smart and well-organized agriculture’.
    • The digital repository will aid the precise targeting of subsidies, services, and policies.
    • Under the program, each farmer of the country will get what is being called an FID, or a farmers’ ID, linked to land records to uniquely identify them.

  • [pib] Bhartiya Prakritik Krishi Padhati (BPKP)

    The Union Minister of Agriculture has provided useful information regarding the Bhartiya Prakritik Krishi Padhati (BPKP).

    Bhartiya Prakritik Krishi Padhati (BPKP)

    • Natural farming is promoted as BPKP under a centrally sponsored scheme- Paramparagat Krishi Vikas Yojana (PKVY).
    • The scheme mainly emphasizes the exclusion of all synthetic chemical inputs and promotes on-farm biomass recycling.
    • It stresses biomass mulching; use of cow dung-urine formulations; plant-based preparations and time to time working of soil for aeration.
    • Under BPKP, financial assistance of Rs 12200/ha for 3 years is provided for cluster formation, capacity building, and continuous handholding by trained personnel, certification, and residue analysis.

    About Paramparagat Krishi Vikas Yojana

    • “PKVY” is an elaborated component of Soil Health Management (SHM) of the major project National Mission of Sustainable Agriculture (NMSA).
    • Under PKVY Organic farming is promoted through the adoption of the organic village by cluster approach and PGS certification.

    The Scheme envisages:

    • Promotion of commercial organic production through certified organic farming.
    • It will raise farmer’s income and create a potential market for traders.

    Program implementation

    • Fifty or more farmers will form a cluster having 50 acres of land to take up the organic farming under the scheme.
    • In this way, during three years 10,000 clusters will be formed covering a 5.0 lakh acre area under organic farming.
    • There will be no liability on the farmers for expenditure on certification.
    • Every farmer will be provided Rs. 20,000 per acre in three years for the seed to harvesting crops and to transport produce to the market.
    • Organic farming will be promoted by using traditional resources and organic products will be linked with the market.
    • It will increase domestic production and certification of organic produce by involving farmers.

    Answer this PYQ in the comment box:

    Q.With reference to organic farming in India, consider the following statements:

    1. ‘The National Programme for Organic Production (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
    2. ‘The Agricultural and Processed Food Products Export Development Authority (APEDA) functions as the Secretariat for the implementation of NPOP.
    3. Sikkim has become India’s first fully organic State.

    Which of the above statements is/are correct? (CSP 2018)

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3