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GS Paper: GS3-09.Economics of Animal Rearing

  • [pib] E-SANTA: Electronic marketplace to connect Aqua farmers and buyers

    Union Commerce and Industry Ministry has inaugurated E-SANTA, an electronic marketplace providing a platform to connect aqua farmers and buyers.

    Note:

    Aquaculture also known as aquafarming is the farming of fish, crustaceans, mollusks, aquatic plants, algae, and other organisms. It involves cultivating freshwater and saltwater populations under controlled conditions, and can be contrasted with commercial fishing, which is the harvesting of wild fish.

    Mariculture commonly known as marine farming refers to aquaculture practiced in marine environments and in underwater habitats, opposed to in freshwater.

    E-SANTA

    • The term e-SANTA was coined for the web portal, meaning Electronic Solution for Augmenting NaCSA farmers’ Trade-in Aquaculture.
    • It will enable the farmers to get a better price and the exporters to directly purchase quality products from the farmers enhancing traceability, a key factor in international trade.
    • National Centre for Sustainable Aquaculture (NaCSA) is an extension arm of Marine Products Export Development Authority (MPEDA), Ministry of Commerce & Industry.
    • It will raise income, lifestyle, self-reliance, quality levels, traceability, and provide new options for our aqua farmers.
    • The platform will change the traditional way of carrying out business from a word of mouth basis to become more formalized & legally binding.

    E-SANTA will RAISE the lives & income of farmers by:

    1. Reducing Risk
    2. Awareness of Products & Markets
    3. Increase in Income
    4. Shielding Against Wrong Practice
    5. Ease of Processes

    Its’ utility

    • E-SANTA is a Digital Bridge to end the market divide and will act as an alternative marketing tool between farmers & buyers by eliminating middlemen.
    • It will revolutionize traditional aqua farming by providing cashless, contactless and paperless electronic trade platform between farmers and exporters.
    • It can become a tool to advertise collectively the kind of products the buyers, fishermen & fish producing organisations are harvesting.

    How does it work?

    • E-SANTA is a completely paperless and end-to-end electronic trade platform between Farmers and exporters.
    • The farmers have the freedom to list their products and quote their price while the exporters have the freedom to list their requirements and also to choose the products based on their requirements.
    • This enables the farmers and buyers to have greater control over the trade and enables them to make informed decisions.
    • The platform provides a detailed specification of each product listing and it is backed by an end to end electronic payment system with NaCSA as an Escrow agent.
    • After crop listing and online negotiation, a deal is struck, advance payment is made and an estimated invoice is generated.

  • Shaphari Scheme

    Commerce Ministry wants to build confidence in quality, antibiotic-free shrimp products from India for the global market.

    Shaphari Scheme

    • The Marine Products Exports Development Authority (MPEDA) has developed a certification scheme for aquaculture products called ‘Shaphari’, a Sanksrit word that means the superior quality of fishery products suitable for human consumption.
    • The Shaphari scheme is based on the United Nations’ Food and Agriculture Organization’s technical guidelines on aquaculture certification.
    • It will have two components — certifying hatcheries for the quality of their seeds and, separately, approving shrimp farms that adopt the requisite good practices.
    • The certification of hatcheries will help farmers easily identify good quality seed producers.
    • Those who successfully clear multiple audits of their operations shall be granted a certificate for a period of two years.
    • The entire certification process will be online to minimize human errors and ensure higher credibility and transparency.

    Bolstering confidence in India’s Shrimp production

    • To bolster confidence in India’s frozen shrimp produce, the country’s biggest seafood export item, the Centre has kicked off a new scheme called ‘Shaphari’ to certify hatcheries and farms that adopt good aquaculture practices.
    • Frozen shrimp is India’s largest exported seafood item.
    • But a combination of factors had hurt export volumes in recent months, including container shortages and incidents of seafood consignments being rejected because of food safety concerns.
    • Some recent consignments sourced from Indian shrimp farms being rejected due to the presence of antibiotic residue and this is a matter of concern for exporters.
    • The National Residue Control Programme for food safety issues in farm produce and pre-harvest testing system is already in place.
    • But this certification was proposed as a market-based tool for hatcheries to adopt good aquaculture practices and help produce quality antibiotic-free shrimp products to assure global consumers.

    Frozen shrimp export potential

    • Frozen shrimp is India’s largest exported seafood item. It constituted 50.58% in quantity and 73.2% in terms of total U.S. dollar earnings from the sector during 2019-20.
    • India exported frozen shrimp worth almost $5 billion in 2019-20, with the U.S. and China its the biggest buyers.
    • Andhra Pradesh, West Bengal, Odisha, Gujarat and Tamil Nadu are India’s major shrimp producing States, and around 95% of the cultured shrimp produce is exported.

  • What are Military Farms?

    Military farms have been closed after 132 years of service.

    Read till the end to know what Project Freiswal is.

    What are Military Farms?

    • The farms were set up with the sole requirement of supplying hygienic cow milk to troops in garrisons across British India.
    • The first military farm was raised on February 1, 1889, at Allahabad.
    • Post-independence, the farms flourished with 30,000 heads of cattle in 130 farms all over India.
    • They were even established in Leh and Kargil in the late 1990s.

    Why are they shutdown?

    • The major task was the management of large tracts of defence land, production and supply of baled hay to animal holding units.
    • There have been several recommendations in the past to shut down the farms.
    • In 2012, the Quarter Master General branch had recommended their closure.
    • Again in December 2016 by Lt. Gen. DB Shekatkar (retd) committee was appointed to recommend measures to enhance combat capability and rebalance defence expenditure of the armed forces.

    Their significance

    • For more than a century, the farms with dedication and commitment supplied 3.5 crore litres of milk and 25,000 MT of hay yearly.
    • It is credited with pioneering the technique of artificial insemination of cattle and the introduction of organised dairying in India, providing yeoman service during the 1971 war.
    • It also supplied milk at the Western and Eastern war fronts as well as during the Kargil operations to the Northern Command.

    Another initiative: Project Freiswal

    • It utilizes Friesian-Sahiwal cross-breeds as a base for the evolution of a new milch strain – “Frieswal” – through interbreeding, selection and progeny testing of bulls.
    • It was introduced on 3 November 1987 at the Military Farm School and Research Centre in Meerut.
    • It had the objective of studying the genetic aspects of Holstein x Sahiwal crossbreeds and those of important indigenous cattle breeds for their improvement through selection.

  • Animal Husbandry Infrastructure Development Fund (AHIDF)

    Importance of animal husbandary and dairy sector

    • As an allied industry of agriculture, the animal husbandry and dairy sector collectively employs more than 100 million people.
    • Since the bulk of establishments in this sector is concentrated in rural India, the socio-economic relevance of this sector cannot be overstated.
    • the Central government unveiled a string of measures to cushion the economy, as a part of which the Animal Husbandry Infrastructure Development Fund (AHIDF) was announced.

    More about AHIDF

    • The AHIDF has been set up with an outlay of ₹15,000 crore.
    • As per the provisions of AHIDF, a project will be eligible for a loan amount that covers up to 90% of the estimated cost –
    • There will be interest subvention of 3% for all eligible entities.
    • Applicants can submit the proposal with a complete Detailed Project Report through the Udyami Mitra Portal.
    • The fund includes a diverse set of stakeholders such as FPOs, private dairy players, individual entrepreneurs, and non-profits within its ambit.

    Strengthening dairy value chain

    • There is a pressing need to enhance chilling infrastructure at collection centres by setting up bulk milk coolers.
    • If the infrastructure needs for milk processing and distribution are included, then the overall potential investment opportunity is to the tune of ₹1,40,000 crore across the dairy value chain.
    • There is also considerable potential to increase the productivity of cattle, especially by enhancing the quality of animal feed.
    • With this in mind, the AHIDF has been designed to support the establishment of animal feed plants of varying capacities.
    • The infrastructure gap of 10-18 MMT in the production and supply of affordable compound cattle feed translates into an investment potential of around ₹5,000 crore.

    Boosting the poultry industry

    • There are not only economic but nutritional benefits to boosting the poultry segment’s output, efficiency and quality.
    • India is the fourth largest chicken meat producer and the second largest egg producer in the world.
    • India is well-positioned to help mitigate rampant malnutrition given that chicken meat provides the cheapest source of protein per unit.
    • With eggs being introduced as part of the mid-day meal within several anganwadis in the country, an upgradation in poultry infrastructure would be closely intertwined with social justice outcomes too.
    • Macro benefits regarding climate change and employment are linked to this sector.
    • Enhanced infrastructure can make processing units more energy-efficient and help mitigate their carbon footprint.

    Consider the question ” As an allied industry of agriculture, the animal husbandry and dairy sector are important for rural area and the socio-economic relevance of this sector cannot be overstated. In light of this, examine the role Animal Husbandry Infrastructure Development Fund (AHIDF) could play in transforming rural economy.”

    Conclusion

    The AHIDF also has the potential to create over 30 lakh jobs, even as it overhauls domestic infrastructure towards giving greater prominence to India’s dairy and livestock products in the global value chain.

     

  • Dairy Industry in India : An analysis

    The article highlights the issues facing the dairy sector and explains the utility of IVF technology for crossbreeding.

    Importance of dairy sector

    • The dairy sector assumes significance on account two reasons:
    • 1) It has to do with the socio-cultural affinity towards cows and dairy products in large parts of the country.
    • 2) As an industry, it employs more than 70 million farmers.
    • Need of the hour is for us to identify ways in which we can enhance the return on investment for our farmers.

    India’s journey from milk deficit country to one of surplus

    • Initiated in 1970, Operation Flood transformed India into one of the largest milk producers.
    • The per capita availability of milk in 2018-19 was 394 grams per day as against the world average of 302 grams.
    • Today with an annual production of 187.75 million tonnes India accounts for about 22% of the world’s milk production.
    • However, India is yet to join the ranks of major milk exporting nations, as much of what we produce is directed towards meeting domestic demands.

    Making India milk exporting nation

    • Indigenous cows produce 3.01kgs of milk per cow per day, while the yield of exotic crossbred cows is 7.95kgs.
    • Crossbreeding has taken off in a big way because of the advancements in reproductive technologies like In vitro fertilization (IVF), embryo transfer process, and artificial insemination.
    • Out of these processes, IVF and artificial insemination have proven to be the most popular and effective methods.
    • The NAIP (Nationwide Artificial Insemination Programme) Phase-I was launched in September 2019.
    • Every animal in the programme was assigned a 12-digit unique identification number under the Pashu Aadhar scheme.
    • NAIP Phase-II was initiated on 1 August 2020 with an allocation of ₹1,090 crore in 604 districts covering 50,000 animals per district and is on track to be completed by the 31 May 2021.
    • Under the programme, 9.06 crore artificial inseminations will be performed and is expected to lead to the birth of 1.5 crore high yielding female calves.
    • Consequently, 18 million tonnes of additional milk will be produced as average productivity will be enhanced from 1,861kg per animal per year to 3,000kg per animal per year.
    • Artificial insemination (AI) technology has been the most used method in India, but its success hinges upon accuracy in heat detection and timely insemination.
    • And this is where In Vitro Fertilization (IVF) technology will prove to be more effective.

    Conclusion

    In keeping with our ethos of ‘Jai Kisan, Jai Vigyan’ the marriage of rural farming with the latest innovations in technology will usher in unprecedented transformation in our dairy industry.

  • Prevention of Slaughter and Preservation of Cattle Bill (2020).

    The recent law passed by the Karnataka State Assembly on bovine slaughter is a topic of contention.

    Prevention of Slaughter and Preservation of Cattle Bill (2020)

    • The Karnataka state assembly passed the Prevention of Slaughter and Preservation of Cattle Bill (2020).
    • It has banned the slaughter of all cows, bulls, bullocks and calves as well as it also outlaws the slaughter of buffaloes below the age of 13.
    • Smuggling and transporting animals for slaughter is also an offence.
    • The bill prescribes punishments of between three to seven years – which is more than the punishment prescribed in Indian law for causing the death of a human being by negligence.
    • It also gives the police powers to conduct searches based on suspicion.
    • Though the bill has yet to be passed by the state’s Legislative Council, the government has said it will pass an ordinance to implement its provisions.

    Practice Question: The recent law passed by Karnataka State Assembly on bovine slaughter is a topic of contention. Analyze.

    Muslims and farmers

    • The legislation, based on Hinduism’s reverence for the cow, undermines the food practices of many Indians, for whom beef is a cheap source of protein.
    • Already, Indians are some of the most malnourished people on the planet and, remarkably, nutrition standards are worsening.
    • The bill also penalizes people working in the meat and leather industries that depend on cattle slaughter, many of whom are Muslim.

    Dairy economics

    • The sector that will take the largest hit from the legislation is the dairy industry. India’s dairy industry is massive with an annual turnover of Rs 6.5 lakh crore – making it by far India’s largest agricultural product.
    • India’s farmers earn more from dairy than wheat and rice put together. India has almost as many bovines as people in the United States with one for every four Indians.
    • The problem with the bill is that that slaughter is integral to the dairy industry’s economic functioning. Dairy farming in India functions on small margins. As a result, the upkeep of unproductive animals would throw their bottom lines out of alignment.
    • When a male calf is born or a milch animal stops giving milk (or yield falls), farmers need to be able to get rid of the animal. In normal times, this sale is also a source of capital for the farmer.
    • In 2014, the size of the used cattle market just in Maharashtra was valued at as much as Rs 1,180 crore per year.
    • Verghese Kurien, founder of Amul and the architect of India’s White Revolution, that supercharged India’s milk production from 1970, opposed any ban on cow slaughter. Kurein was clear that the economics of dairy demanded slaughter.

    Cowed down

    • The statistics produced by the 2019 Livestock Census are clear: cow slaughter laws have actually ended up harming cows.
    • Between 2012 and 2019, states with cow slaughter laws such as Maharashtra, Madhya Pradesh and Uttar Pradesh saw their cattle numbers fall (by 10.07%, 4.42% and 3.93%, respectively).
    • On the other hand, West Bengal – one of India’s rare states where cattle slaughter has no restrictions – saw a massive increase of 15.18%. As a result, Bengal now has the Indian Union’s largest cattle population.
    • Farmers simply let unproductive cattle loose, giving rise to the problem of large herds of feral cows which have caused economic havoc and pose a danger of citizens – a problem unique to India.
    • In the countryside of many states, famished cattle herds now pose a danger to crops and cause accidents.

    Buffalo nation

    • Naturally, stray cattle numbers are directly linked to cow slaughter laws. States such as Uttar Pradesh, Madhya Pradesh and Gujarat have seen substantial rises in their stray cow population between 2012 and 2019 while West Bengal has seen a sharp fall.
    • Between 2012 and 2019, Maharashtra, Madhya Pradesh and Uttar Pradesh saw their buffalo numbers rise.
    • Since the buffalo – not seen as sacred in Hinduism – could be slaughtered legally, dairy farmers were clearly preferring it over the holy cow.
    • But the Karnataka bill very alarming even compared to the devastation caused by the earlier cow slaughter laws is because it even targets buffalos.

    Making it worse

    • Karnataka’s stringent laws against cow slaughter is part of a policy pattern that – rather than make India’s already precarious economic situation better – makes Indians worse off.
    • Recent examples include demonetization, the new Goods and Services Tax as well as putting in place the world’s harshest Covid-19 lockdown, making sure India’s was the worst affected country economically during the pandemic.
    • India is going through a rural crisis. With poor yields due to unscientific farming methods and lack of support structures like irrigation, the average monthly income of the Indian farmer stands at only Rs 6,427 per month.
    • To make matters worse, for small farmers (defined as owning less than a hectare of land), their farming income is too low to cover their expenses and they are in debt and this describes the situation of 83% of Indian farmers.

  • [pib] Rashtriya Kamdhenu Aayog

    Rashtriya Kamdhenu Aayog (RKA) has started a nationwide campaign to celebrate “Kamdhenu Deepawali Abhiyan” this year on the occasion of Deepawali festival.

    Try this PYQ:

    Q.Consider the following statements:

    1. Agricultural soils release nitrogen oxides into the environment.
    2. Cattle release ammonia into the environment.
    3. Poultry industry releases reactive nitrogen compounds into the environment.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

    Rashtriya Kamdhenu Aayog (RKA)

    • RKA has been constituted by PM for the conservation, protection and development of cows and their progeny and for giving direction to the cattle development programmes.
    • It is a high powered permanent body to formulate policy and to provide direction to the implementation of schemes related to cattle so as to give more emphasis on livelihood generation.

    Why need RKA?

    • Livestock economy sustains nearly 73 million households in rural areas.
    • Even though, the country is the largest producer of milk, the average milk yield in India is only 50% of the world average.
    • The low productivity is largely due to deterioration in genetic stock, poor nutrition and unscientific management.

  • Pradhan Mantri Matsya Sampada Yojana

    PM will digitally launch the PM Matsya Sampada Yojana (PMMSY) today.

    PM Matsya Sampada Yojana

    • The PMMSY aims to bring about the Blue Revolution through sustainable and responsible development of the fisheries sector in India.
    • It has an estimated investment of Rs. 20,050 crores for its implementation during a period of 5 years from FY 2020-21 to FY 2024-25 in all States/UTs, as a part of AatmaNirbhar Bharat Package.
    • PMMSY aims at enhancing fish production by an additional 70 lakh tonne by 2024-25, increasing fisheries export earnings to Rs.1,00,000 crore by 2024-25.
    • Thus it aims doubling of incomes of fishers and fish farmers, reducing post-harvest losses from 20-25% to about 10% and generation of gainful employment opportunities in the sector.

    Aims and objectives of PMMSY

    • Harnessing of fisheries potential in a sustainable, responsible, inclusive and equitable manner
    • Enhancing of fish production and productivity through expansion, intensification, diversification and productive utilization of land and water
    • Modernizing and strengthening of the value chain – post-harvest management and quality improvement
    • Doubling fishers and fish farmers incomes and generation of employment
    • Enhancing contribution to Agriculture GVA and exports
    • Social, physical and economic security for fishers and fish farmers
    • Robust fisheries management and regulatory framework

    Implementation strategy

    The PMMSY will be implemented as an umbrella scheme with two separate components namely:

    (a) Central Sector Scheme and

    (b) Centrally Sponsored Scheme

    • Majority of the activities under the Scheme would be implemented with the active participation of States/UTs.
    • A well-structured implementation framework would be established for the effective planning and implementation of PMMSY.
    • For optimal outcomes, ‘Cluster or area-based approach’ would be followed with requisite forward and backward linkages and end to end solutions.

    Other inaugurations: e-Gopala App

    • e-Gopala App is a comprehensive breed improvement marketplace and information portal for direct use of farmers.
    • At present no digital platform is available in the country for farmers managing livestock including buying and selling of disease-free germplasm in all forms (semen, embryos, etc); availability of quality breeding services and guiding farmers for animal nutrition etc.
    • There is no mechanism to send alerts (on the due date for vaccination, pregnancy diagnosis, calving etc) and inform farmers about various government schemes and campaigns in the area.
    • The e-Gopala App will provide solutions to farmers on all these aspects.

  • Godhan Nyay Yojana to boost rural economy

    Chhattisgarh is set to launch ‘Godhan Nyay Yojana’. The scheme aims to put money in the pockets of people living in rural areas and also solve the problem of stray cattle.

    Try this question from CSP 2019:

    Consider the following statements

    1. Agricultural soils release nitrogen oxides into the environment.
    2. Cattle release ammonia into the environment.
    3. Poultry industry releases reactive nitrogen compounds into the environment.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

    Godhan Nyay Yojana

    • Under the scheme, the Chhattisgarh government will purchase cow dung at the rate of Rs 2 per kg.
    • This scheme will turn cow dung into a profitable commodity.
    • The scheme also aims to make cow rearing economically profitable and to prevent open grazing in the state, as well as help with the problem of stray animals on roads and in urban areas.

    How will the scheme help the rural economy?

    • The scheme will generate additional income and increase employment opportunities.
    • The government will procure cow dung and prepare vermicompost in order to move towards organic farming.
    • There is a huge market for organic farming. Vermicompost will be sold by cooperative societies.
    • Distribution of vermicompost fertilizer to farmers will be done as a commodity loan by cooperative societies, banks.

    Preventing strays in urban areas

    • In urban areas, the scheme will prevent movement of stray animals on roads and highways, and also improve urban sanitation with proper disposal of waste produced by cattle.
    • Cattle will be tagged with the owner’s name, address, mobile number to the neck of each animal after the survey to ensure accountability of cattle owners if their cattle are found in the open.

  • Animal Husbandry Infrastructure Development Fund (AHIDF)

    The Cabinet Committee on Economic Affairs has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore.

    Practice question for mains:

    Q. In pursuit of doubling farmer’s income, development of animal husbandry has to play a crucial role. Discuss.

    About AHIDF

    • The fund is part of the Rs 20 lakh crore stimulus packages to help people affected by the lockdown to prevent the spread of COVID-19.
    • The AHIDF would promote infrastructure investments in dairy, meat processing and animal feed plants.
    • Farmer producer organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneurs would be eligible to benefit from the fund.
    • It will ensure the availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ payback for investors.

    Provisions of the AHIDF

    • The beneficiaries will have to contribute 10 per cent margin towards the proposed infra project and the rest 90 per cent would be a loan component to be made available to them by scheduled banks.
    • The balance 90% would be the loan component to be made available by scheduled banks.
    • Government of India will provide 3% interest subvention to eligible beneficiaries.
    • There will be 2 years moratorium period for the principal loan amount and 6 years repayment period thereafter.