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GS Paper: Agriculture and related issues

  • [pib] Cabinet approves PM Rashtriya Krishi Vikas Yojana (PM-RKVY) and Krishonnati Yojana (KY)

    Why in the News?

    The Union Cabinet approved the rationalization of all Centrally Sponsored Schemes (CSS) under the Ministry of Agriculture and Farmers Welfare into two umbrella schemes:

    • Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY) – A cafeteria scheme aimed at promoting sustainable agriculture.
    • Krishonnati Yojana (KY) – Focuses on food security and agricultural self-sufficiency.

    About PM Rashtriya Krishi Vikas Yojana (PM-RKVY):

    Details
    Objective To promote sustainable agriculture and improve agricultural productivity.
    Total Proposed Expenditure Rs 1,01,321.61 crore (combined with Krishonnati Yojana).
    Central Share (DA&FW) Rs 57,074.72 crore under PM-RKVY.
    Key Initiatives under PM-RKVY
    • Soil Health Management
    • Rainfed Area Development
    • Agro Forestry
    • Paramparagat Krishi Vikas Yojana
    • Agricultural Mechanization (including Crop Residue Management)
    • Per Drop More Crop
    • Crop Diversification Programme
    • RKVY DPR Component
    • Accelerator Fund for Agri Startups
    Key Focus Sustainable agricultural practices, soil health, water conservation, crop diversification, organic farming, and agricultural mechanization.
    Flexibility for States Increased flexibility for state governments to reallocate funds based on unique requirements of the states.
    Implementation Method Funds allocated to states, with state governments developing Comprehensive Strategic Documents addressing crop production, climate resilience, and value chains.
    Benefits Avoid duplication, ensure convergence, and streamline the approval process for quicker implementation of Annual Action Plans (AAP).

     

    Schemes merged into Krishonnati Yojana (KY):

    • National Food Security Mission (NFSM)
    • National Mission on Oilseeds and Oil Palm (NMOOP)
    • Mission for Integrated Development of Horticulture (MIDH)
    • National Mission on Sustainable Agriculture (NMSA)
    • Sub-Mission on Agricultural Mechanization (SMAM)
    • National Mission on Agricultural Extension and Technology (NMAET)
    • Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)

    PYQ:

    [2014] Consider the following pairs:

    Programme/Project Ministry
    1. Drought – Prone Areas Programme Ministry of Agriculture and Farmers Welfare
    2. Desert Development Programme Ministry of Environment, Forest and Climate Change
    3. National Watershed Development Project for Rainfed Areas Ministry of rural development

    Which of the pairs given above is/are correctly matched?

    (a) Only 1 and 2

    (b) Only 3

    (c) 1, 2 and 3

    (d) None of these

  • Nanjangud Rasabale Banana

    Why in the News?

    The “Nanjangud Rasabale banana” has been revived after a drastic decline in cultivation, despite receiving Geographical Indication (GI) certification in 2006 for its unique taste and aroma.

    About Nanjangud Rasabale Banana

    Details
    Origin Devarasanahalli village near Nanjangud, Mysore district, Karnataka
    Unique Features
    • Unique taste, aroma, small size, buttery soft texture
    • 5-8 cm in length, 2-3 cm in diameter
    Cultivation
    • In 2006-07, 180 farmers cultivated on 100 hectares; dropped to 15 farmers on 10 hectares by 2019-20.
    • By the end of 2023-24, 200 farmers cultivating on 75 hectares.
    Soil  Black saline alluvial soil along the banks of the Kapila River
    Significance Popular in traditional festivals, religious ceremonies, and Kannada literature
    Cultural Reference Mentioned in Kayyar Kinhanna Rai’s poem, a notable Kannada literary work
    Challenges Decline in quality due to heavy use of chemical fertilizers
    Economic Impact Significant for local farmers, high demand due to limited availability

     

    PYQ:

    [2016] Recently, our scientists have discovered a new and distinct species of banana plant which attains a height of about 11 metres and has orange coloured fruit pulp. In which part of India has it been discovered?

    (a) Andaman Islands

    (b) Anaimalai Forests

    (c) Maikala Hills

    (d) Tropical rain forests of northeast

  • Spices Board targets exports of $25 billion by 2047

    Why in the News?

    • The Spices Board of India aims to achieve $25 billion in annual exports of spices and spice-based products by 2047, a significant increase from the current $4.4 billion.
      • Current consumption is 10 million tonnes, with 1.42 million tonnes exported annually. By 2047, the export target is 2.7 million tonnes.

    About Spices Board of India

    • The merger of the erstwhile Cardamom Board and Spices Export Promotion Council on 26th February 1987, under the Spices Board Act 1986 led to the formation of the Spice Board of India.
    • The Board functions as an International link between the Indian exporters and the importers abroad with a nodal Ministry of Commerce & Industry.
    • It is headed by a Chairman, a rank equivalent to Joint Secretary to the GoI.
    • Headquartered in Kochi, it has regional laboratories in Mumbai, Chennai, Delhi, Tuticorin, Kandla and Guntur.
    • Main Functions:
      • It promotes organic production, processing, and certification of spices.
      • Responsible for the overall development of Cardamom.
      • It focuses on post-harvest improvement programs to improve the quality of the 52 scheduled spices for export.
      • These programs are included under the head ‘Export Oriented Production’.

    Present Scenario of Spices  

    • Production:
      • Major producing states: Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu, and Kerala.
      • During 2022-23, the export of spices from India stood at US$ 3.73 billion, up from US$ 3.46 billion in 2021-22.
      • India produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO).
    • Major Produced and Exported Spices by India:
      • Pepper, cardamom, chili, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils, and oleoresins.
      • Out of these spices, chili, cumin, turmeric, ginger, and coriander make up about 76% of the total production.
      • Chilli is the leading export earner, generating $1.1 billion annually.
      • Ginger exports have a compound annual growth rate (CAGR) of 27%.
    • Export:
      • In 2023-24, India’s spice exports totalled $4.25 billion, accounting for a 12% share of the global spice exports (till February 2024 data).
      • India exported spices and spice products to 159 destinations worldwide as of 2023-24. The top destinations were China, the USA, Bangladesh, the UAE, Thailand, Malaysia, Indonesia, the UK, and Sri Lanka. These countries accounted for more than 70% of total exports.

     

    PYQ:

    [2019] 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?

    (a) Spices

    (b) Fresh fruits

    (c) Pulses

    (d) Vegetable oils

  • Jute Production in India

    Why in the News?

    • Jute production is expected to decline by 20% this financial year, as per the National Jute Board.
      • Jute cultivation in West Bengal and Assam was severely affected by natural calamities, including floods, damaging crops in some areas.

    About National Jute Board (NJB)

    • The NJB was established in 2008 under the National Jute Board Act, 2008 (w.e.f. 2010), and operates under the Ministry of Textiles.
    • Its primary objective is to promote the development of the jute sector by supporting modernization, productivity enhancement, and domestic as well as international marketing of jute products.
    • It implements various initiatives, such as Jute-ICARE, aimed at improving jute cultivation practices, and promotes Jute Geotextiles for infrastructure projects.
    • HQ: Kolkata (West Bengal)
    • NJB implements the Jute Technology Mission (JTM) aimed at improving the productivity, quality, and diversification of jute products.
      • JTM 2.0 presently focuses on further enhancing the productivity, quality, and diversification of jute.

    About the Jute Industry in India

    • Jute, often referred to as the ‘golden fibre’, is considered safe for packaging due to its natural, renewable, biodegradable, and eco-friendly properties.
    • The Jute Industry in India is over 150 years old, with approximately 93 jute mills currently in operation, as per the Indian Jute Mills Association (IJMA).
    • India’s first jute mill was established in 1854 at Rishira, near Kolkata.
      • However, after independence, India faced challenges as the jute-growing areas remained in Bangladesh while the jute factories were located in India.
    • The jute industry is a vital sector in East India, particularly in West Bengal.
      • It supports about 40 lakh agricultural families, employing 1.4 lakh people in the tertiary sector and 2.6 lakh in manufacturing.
    • India is the largest producer of jute, followed by Bangladesh and China. However, Bangladesh leads in global jute trade, accounting for 75% of exports, while India accounts for 7%.

    Jute Cultivation in India

    • Jute cultivation is mainly concentrated in 3 Indian states: West Bengal, Assam, and Bihar which together produce 99% of the country’s jute.
    • Conditions Required:
      • Temperature: 25-35°C
      • Rainfall: 150-250 cm
      • Soil Type: Well-drained alluvial soil
    • This is due to the rich alluvial soil in the Ganga-Brahmaputra delta.
    • Jute is versatile and used to produce gunny bags, mats, ropes, yarn, carpets, and various artefacts.
    • Jute seeds are planted between April and May and harvested between July and August.
    • The leaves can be sold in vegetable markets for nearly two months of the four-month jute crop cycle.
    • The tall, hardy grass shoots up to 2.5 metres and each part of it has several uses.
    • The outer layer of the stem produces the fibre that goes into making jute products.
    • The government fixes the Minimum Support Price (MSP) for raw jute procurement from farmers.

     

    PYQ:

    [2020] “The crop is subtropical. A hard frost is injurious to it. It requires at least 210 frost-free days and 50 to 100 centimetres of rainfall for its growth. A light well-drained soil capable of retaining moisture is ideally suited for the cultivation of the crop.” Which one of the following is that crop?

    (a) Cotton

    (b) Jute

    (c) Sugarcane

    (d) Tea

  • India raises Import Tax on Edible Oils

    Why in the News?

    • India has increased the basic import tax on crude and refined edible oils by 20% to protect domestic farmers suffering from low oilseed prices.
      • The move could push up edible oil prices, reduce demand, and potentially lower imports of palm oil, soyoil, and sunflower oil.

    Edible Oil Scenario in India                                              

    • India imports more than 70% of its vegetable oil demand, mainly sourcing:
      • Palm oil from Indonesia, Malaysia, and Thailand, and
      • Soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.
    • Palm oil constitutes over 50% of India’s edible oil imports.

    NITI Aayog Report on Edible Oil Self-sufficiency: Key Highlights

    NITI Aayog, along with the Ministry of Agriculture and other stakeholders, released a report titled “Pathways and Strategies for Accelerating Growth in Edible Oils Towards the Goal of Atmanirbharta.”

    Details
    Consumption Details India consumes 19.7 kg/year per capita edible oil, with 16.5 million tonnes of imports in 2022-23; only 40-45% of demand met through domestic production.
    Projections
    • Domestic production could reach 16 MT by 2030
    • 26.7 MT by 2047 under Business-As-Usual (BAU) scenario
    Strategic Interventions
    • Crop Retention and Diversification
    • Horizontal Expansion (increase cultivation area)
    • Vertical Expansion (improve yield through technology)
    Self-sufficiency Targets
    • Edible oil production of 36.2 MT by 2030
    • 70.2 MT by 2047
    Key Recommendations Focus on seed quality, modern processing infrastructure, and public-private partnerships for growth

     

    PYQ:

    [2018] Consider the following statements

    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 a special case.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Expansion of Agricultural Infrastructure Fund (AIF) Scheme

    Why in the News?

    • The Union Cabinet has approved the expansion of the Agricultural Infrastructure Fund (AIF) scheme.
      • It will now include financial support for Farmers’ Producers Organizations (FPOs) to enhance their financial security and creditworthiness.

    About Agriculture Infrastructure Fund (AIF) Scheme:

    Details
    Launch  July 2020, Central Sector Scheme
    Nodal Ministry Ministry of Agriculture and Farmers Welfare, Government of India
    Fund Allocation Rs. 1 lakh crore, with disbursements planned until 2025-26; interest subvention and credit guarantee assistance extended till 2032-33.
    Aim To mobilize medium to long-term debt financing for investment in viable projects relating to post-harvest management infrastructure and community farming assets, to enhance agricultural infrastructure in India.
    Key Features – Interest Subvention: 3% on loans up to Rs. 2 crore, with additional rate reductions for NABARD loans for PACS.
    – Credit Guarantees: Under the CGTMSE scheme for loans up to Rs. 2 crore.
    – Fund Usage: Supports up to 25 projects per beneficiary across different locations.
    Target Beneficiaries Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), entrepreneurs, startups, Self Help Groups, Agricultural Produce Market Committees, and federations.
    Management Managed through an online MIS platform with national, state, and district level monitoring committees for real-time monitoring and feedback.
    Lending Institutions Includes 24 commercial banks, 40 cooperative banks, and NABARD among others.
    Hassle-Free Process Supported by a user-friendly online portal to facilitate speedy loan sanctions.

     

    Key changes introduced: 

    Description
    Support for FPOs Includes financial support for Farmers’ Producers Organizations (FPOs) to improve financial security and creditworthiness.
    Broader Eligible Projects Expand the scope to cover more types of agricultural infrastructure projects.
    Community Farming Assets Allows the creation of community farming assets to enhance productivity and sustainability.
    Integrated Processing Projects Adds integrated primary and secondary processing projects as eligible activities; standalone secondary projects remain under MoFPI schemes.
    Alignment with PM-KUSUM Converges AIF with PM-KUSUM Component-A for joint development of agricultural infrastructure and clean energy solutions.
    Extended Credit Guarantee Extends credit guarantee coverage to FPOs through NABSanrakshan, in addition to CGTMSE, to boost investment confidence.

     

    PYQ:

    [2015] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?

    1. It is an organ of NITI Aayog.

    2. It has a corpus of 4,00,000 crore at present.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • The road to 2047 for Indian agriculture   

    Why in the News?

    India’s 100th independence anniversary in 2047 is approaching, and the goal to become ‘a developed nation’ has a significant focus.

    Goals of Indian Agriculture by Vision 2047:

    • Comprehensive Goal: India’s centennial year of independence requires a six-fold increase in per capita Gross National Income (GNI), emphasizing the need for comprehensive development, especially in agriculture.
    • Trade Goal: India’s agricultural and processed food exports have gone up to more than USD 50 billion in 2022-23.
      • The Vision 2047 aims to improve the availability of nutritious foods by enhancing the processing of fruits and vegetables, and augment the proportion of value-added products in India’s export portfolio.
    • Sustainable Goal: Transforming Indian agriculture will hinge on adopting sustainable practices such as precision farming, genetically modified crops, and advanced irrigation techniques (e.g., drip and sprinkler systems).

    Present starking Imbalance in the Indian Economy

    • Workforce vs. GDP Contribution: Despite agriculture engaging nearly 46% of the workforce, it contributes only about 18% to the GDP, revealing a significant imbalance.
    • Growth Disparity: While the overall GDP has grown at 6.1% annually since 1991-92, agricultural GDP has lagged at 3.3%. In the last decade (2013- 2023), overall GDP growth was 5.9%, with agriculture growing at 3.6%, which is insufficient for the sector’s socio-economic importance.
    • Future Projections: By 2047, agriculture’s share in GDP might shrink to 7%-8%, but it could still employ over 30% of the workforce, necessitating significant structural changes to avoid exacerbating the disparity.

    Government Initiatives:

    • For Water Management: The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has promoted water-use efficiency through micro-irrigation, covering 78 lakh hectares with a ₹93,068 crore allocation for 2021-26.
    • For Risk Management: The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers financial assistance for crop losses, with 49.5 crore farmers enrolled and claims totalling over ₹1.45 lakh crore.
    • For Market Access: The Electronic National Agriculture Market (eNAM) integrates existing markets through an electronic platform, benefiting 1.76 million farmers and recording trade worth ₹2.88 lakh crore by September 2023.
    • For better Farmer Support: The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, disbursing ₹6,000 annually to farmers, has benefited over 11.8 crore farmers.
    • For enhanced Soil Health: The Soil Health Card (SHC) scheme aims to optimize soil nutrient use, enhancing productivity, with over 23 crore SHCs distributed.

    Need for Strategic Planning

    • Population Growth: India’s population is projected to reach 1.5 billion by 2030 and 1.59 billion by 2040, increasing the demand for food by approximately 2.85% annually.
    • Future Demand: By 2047-48, food grain demand is projected to range from 402 million tonnes to 437 million tonnes, requiring sustainable production exceeding demand by 10%-13% under the Business-As-Usual scenario.

    Way Forward: 

    • Investment in R&D: To meet future demands sustainably, significant investments in agricultural research, infrastructure, and policy support are necessary.
    • Budget Allocation: The Budget for 2024-25 includes ₹20 lakh crore for targeted agricultural credit and the launch of the Agriculture Accelerator Fund, highlighting a proactive approach to fostering agricultural innovation and growth.
    • Enhance Digital Infrastructure: Support and expand digital platforms like eNAM to improve market access, provide real-time data, and facilitate better price realization for farmers.

    Mains PYQ: 

    Q Give the vulnerability of inidan 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). (2016)

  • Should India focus on natural farming?    

    Why in the news?

    In the 2024-25 Budget proposals, Union Finance Minister Nirmala Sitharaman declared that over the next two years, one crore farmers nationwide will be introduced to natural farming, with support provided through certification and branding.

    National Mission on Natural Farming (NMNF):

    • The National Mission on Natural Farming (NMNF) aims to encourage farmers to adopt chemical-free farming practices and willingly shift to natural farming based on the merits of the system.
    • The government believes the success of NMNF hinges on changing farmers’ behaviour to transition from chemical-based inputs to cow-based, locally-produced inputs, supported by a financial outlay of ₹4,645.69 crore over six years (2019-20 to 2024-25) under the ‘Bharatiya Prakritik Krishi Paddhati’ scheme.

    What is natural farming?

    • Natural farming avoids the use of chemical fertilizers and pesticides, instead promoting traditional indigenous practices. 
    • It focuses on recycling on-farm biomass, employing biomass mulching, and utilizing formulations made from cow dung and urine.
    • Pests are managed through diverse farming practices and on-farm botanical mixtures, strictly excluding all synthetic chemical inputs.

    What are the concerns related to Yield?

    • Yield Reduction: Agricultural experts are concerned that a large-scale transition to natural farming could result in reduced crop yields. Studies have shown significant declines in yield for staples like wheat (59%) and basmati rice (32%) compared to integrated crop management systems.
    • Food Security: Lower yields from natural farming could threaten food security in a populous country like India, potentially only being able to feed around one-third of the population with staples like wheat and rice.

    Findings on the Ground:

    • Mixed outcomes: Field experiments have shown mixed results. Some studies indicate improved yields and incomes with lower costs due to biological inputs, while others show a decline in productivity.
    • Good Results in Andra Pradesh: In Andhra Pradesh, adopting natural farming methods has shown promising results, leading to better crop yields and enhanced farmers’ incomes.
    • Concerns about sustainability and productivity: Agro-scientists from the Indian Council of Agricultural Research (ICAR) and the Indian Institute of Farming Systems Research (IIFSR) have raised concerns about the sustainability and productivity of natural farming methods.

    Differences in Studies:

    • CESS Study: The Centre for Economic and Social Studies (CESS) and Institute for Development Studies Andhra Pradesh found that natural farming practices led to improved yields and incomes for farmers, thereby enhancing food and nutritional security.
    • ICAR-IIFSR Study: The study by ICAR-IIFSR reported a significant decline in yields of key crops like wheat and basmati rice when compared to conventional farming practices, suggesting a negative impact on food supply.

    Case study of Sri Lanka:

    • Policy Shift: Sri Lanka’s decision to completely switch to organic farming and ban chemical fertilizers led to economic and political turmoil.
    • Yield Decline: Farmers struggled to obtain natural fertilizers, resulting in reduced yields of key crops, including rice.
    • Food Security Risk: The shift put the country’s food security at risk, causing sharp price escalations and widespread protests and unrest.

    Way forward: 

    • Localized Implementation and Scientific Validation: Need to conduct rigorous scientific studies and extensive field trials to validate the productivity and viability of natural farming methods before scaling them up nationwide.
    • Hybrid Approach and Support for Farmers: Govt. should adopt a hybrid approach that combines the best practices of both natural and conventional farming to ensure food security.  

  • Choosing the right track to cut post-harvest losses

    Why in the News? 

    India holds the position of the second-largest agricultural producer globally however, it only accounts for 2.4% of global agricultural exports, ranking eighth worldwide due to the post-harvest loss.

    A closer look at India’s post-harvest loss:

    • Economic Impact: India faces annual post-harvest losses amounting to approximately ₹1,52,790 crore, significantly impacting farmer incomes and the agricultural economy.
    • Perishable Commodities: The biggest losses occur in perishable commodities like livestock produce (22%), fruits (19%), and vegetables (18%). Export processes further add to these losses, particularly at the import-country stage.
    • Supply Chain Inefficiencies: There is Inefficiencies in storage, transportation, and marketing, alongside a lack of assured market connectivity, contribute to significant post-harvest losses. Small and marginal farmers, who make up 86% of the farming community, struggle with economies of scale and market access.

    Initiatives taken by the Railways Department:

    • Truck-on-Train Service: Indian Railways introduced the truck-on-train service, allowing loaded trucks to be transported on railway wagons. This service has been expanded following successful trials with commodities like milk and cattle feed.
    • Parcel Special Trains: During the COVID-19 pandemic, the Railways introduced parcel special trains to transport perishables and seeds between producers and markets, ensuring timely delivery and reducing post-harvest losses.
      • The DFI (Doubling farmers’ income) committee recommends streamlining loading and unloading processes to minimize transit times and address staffing shortages through recruitment and training initiatives.
    • Kisan Rail Scheme: It was launched to connect production surplus regions with consumption regions. This scheme facilitates the transportation of perishables (including milk, meat, and fish) more efficiently.
    • Specialized Wagons and Facilities: Investment in specialized wagons for temperature-controlled transport and establishing rail-side facilities for safe cargo handling are essential steps taken by the Railways.

    Way for Untapped Opportunities:

    • Enhanced Environmental Benefits: Rail transport generates up to 80% less carbon dioxide for freight traffic compared to road transport.
    • Public-Private Partnerships: The private sector can play a crucial role in enhancing operational efficiency and strengthening rail infrastructure through public-private partnerships, thereby improving the overall logistics ecosystem for agricultural produce.
    • Budgetary Support and Infrastructure Development: The budgetary allocation for agriculture in 2024 aims to bridge the farm-to-market gap with modern infrastructure and value-addition support.
    • Technology Integration: Incorporating advanced technologies like real-time tracking, temperature monitoring, and automated loading/unloading systems.

    Way forward: 

    • Expand climate-controlled storage facilities and cold storage capacity to accommodate a larger share of agricultural produce.
    • Provide small and marginal farmers access to storage facilities through cooperatives or subsidies.
    • Invest in specialized rail wagons for temperature-controlled transport and establish rail-side cargo handling facilities.

    Mains PYQ: 

    Q How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC IAS/2017)

  • Integrated Tribal Development Programme by NABARD

    Why in the News?

    National Bank for Agriculture and Rural Development (NABARD) is set to launch an integrated tribal development programme in Kulathupuzha grama panchayat, Kollam.

    About Integrated Tribal Development Programme

    • Thanal, an environment organisation, will be the implementing agency of the project that aims to transform livelihoods of tribal families over the next five years.
    • The five-year initiative targets the sustainable livelihood and agricultural enhancement of 413 families residing in eight hamlets.
    • The programme focuses on promoting diverse agricultural crops such as pepper, arecanut, coconut, ginger, Thai ginger, turmeric, and plantain.
    • It encompasses initiatives in goat rearing, poultry, beekeeping, fish farming, and fodder production.
    • The establishment of a Tribal Farmer Producer Company (FPO) is also planned to further economically empower the community.

    Components of the Programme

    • Water Resource Development: Initiatives aimed at enhancing water resources for agricultural purposes.
    • Leadership Training: Training sessions to empower local leaders within the tribal communities.
    • Awareness Creation: Campaigns to raise awareness about sustainable practices and community development.
    • Sanitation and Hygiene Initiatives: Efforts to improve sanitation and hygiene standards among the tribal families.
    • Marketing and Branding Training: Training programmes to enhance marketing skills and brand awareness among participants.
    • Skill Development Workshops: Workshops focused on enhancing both agricultural and non-agricultural skills among the tribal community.

    About NABARD:

    • It was established on July 12, 1982, based on the recommendation of the Sivaraman Committee to promote sustainable rural development and agricultural growth in India.
    • Aim:  To facilitate credit flow for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
    • It operates as a statutory body under the Reserve Bank of India (RBI) Act, 1934, with its headquarters located in Mumbai.
    • It is governed by a Board of Directors appointed by the GoI:
      • Representatives from the RBI;
      • Central and state governments;
      • Experts from various fields related to Rural Development and Finance.

     Functions of NABARD:

    • Refinance Support: NABARD provides refinance facilities to banks and financial institutions for agricultural and rural development activities, including crop loans and rural infrastructure projects.
    • Financial Inclusion: It promotes financial inclusion by expanding banking services in rural areas, supporting SHGs, FPOs, and MFIs, and facilitating access to credit for rural communities.
    • Priority Sector Lending: NABARD plays a crucial role in channelling credit to priority sectors such as agriculture, small-scale industries, and rural infrastructure, in alignment with the Reserve Bank of India’s priority sector lending guidelines.
    • Direct Lending: It extends direct loans to institutions for specific rural development projects, such as agricultural production, rural infrastructure development, and agri-processing units.
    • Scheme Implementation: The organization administers government schemes and funds like Rural Infrastructure Development Fund (RIDF), Watershed Development Fund (WDF) to finance rural infrastructure projects and watershed development activities.
    • Credit Planning: NABARD collaborates with central and state governments, RBI, and other stakeholders to formulate credit policies and plans for agriculture and rural sectors.
    • Research and Training: NABARD promotes research and development in agriculture, supports capacity building and training programs for rural stakeholders, and facilitates technology transfer initiatives.

     

    PYQ:

    [2013] Which of the following grants/grants direct credit assistance to rural households?

    1. Regional Rural Banks
    2. National Bank for Agriculture and Rural Development
    3. Land Development Banks

    Select the correct answer using the codes given below:

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3