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Subject: Agriculture

  • [pib] Integration of Kisan Credit Card (KCC) Fisheries Scheme and JanSamarth Portal

    Why in the news-

    • The Department of Fisheries inaugurated the integration of the Kisan Credit Card (KCC) Fisheries scheme onto the JanSamarth Portal, marking a revolutionary step in providing credit facilities to fishers and fish farmers nationwide.

    JanSamarth Portal

    • It is a first-of-its-kind online platform for directly connecting lenders with beneficiaries. Citizens can avail loans under 13 Central government schemes under 4 loan categories.
    • The one-stop portal allows citizens to check eligibility, apply online and get digital approval.

    About KCC Fisheries Scheme

    • The GoI, in the year 2018-19, extended KCC facility to fisheries and animal husbandry farmers to help them to meet their working capital requirements.
    • Bank authorities have been instructed to issue KCC within 14 days of receipt of the completed application from the fish farmers.
    • Benefits Include:
    1. For the existing KCC holders the benefits of interest subvention and prompt repayment incentive will be admissible up to the credit limit of Rs. 3 lakhs including fisheries activities.
    2. In the case of new card holders, the credit limit is Rs. 2 lakhs to meet their working capital requirements for fisheries activities.
    3. In the KCC scheme @7% is the lending rate to farmers including @2% interest subvention per annum by GoI. Also, another @3% per annum is provided in case of prompt repayment as an additional incentive as per the existing guidelines.
    4. This implies that the farmers repaying promptly as above would get a loan @ 4% per annum effectively for loan amount upto Rs 2 lakhs.

    Kisan Credit Cards (KCC) Scheme

    • The KCC scheme was introduced on the recommendation of R.V. Gupta of the National Bank for Agriculture and Rural Development.
    • The scheme was launched in 1998 to provide adequate and timely credit support from the banking system to the farmers.
    • It provides a single window with flexible and simplified procedures to the farmers for their cultivation and other needs like purchasing agriculture inputs such as seeds, fertilizers, pesticides etc. and drawing cash for their production needs.
    • The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004.
    • In 2018-19, it was extended to fisheries and animal husbandry farmers.

    Objectives include:

    1. To meet the short-term credit requirement for cultivation
    2. To manage post-harvest expenses
    3. To meet the consumption requirement of farmer’s household
    4. Working capital for maintaining the farm assets and activities allied to agriculture
    5. Investment credit requirement for agriculture-allied activities

    KCC scheme is implemented by:

    1. Commercial banks
    2. Regional Rural Banks (RRBs)
    3. Small Financial Banks, and
    4. Cooperative banks

    Try this PYQ from CSE Prelims 2020:

    Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

    1. Working capital for maintenance of farm assets
    2. Purchase of combine harvesters, tractors and mini trucks
    3. Consumption requirements of farm households
    4. Post-harvest expenses
    5. Construction of family house and setting up of village cold storage facility

    Select the correct answer:

    (a) 1, 2 and 5 only

    (b) 1, 3 and 4 only

    (c) 2, 3, 4 and 5 only

    (d) 1, 2, 4 and 5

     

    Practice MCQ:

    The JanSamarth Portal often seen in the news is related to:

    (a) Lending Facility

    (b) E-KYC

    (c) Consumer Grievances

    (d) Right to Information

     

  • FAO publishes first national report on AMR Surveillance in India’s fisheries, livestock sectors

    In the news

    • The Food and Agriculture Organization of the United Nations (FAO) and the Indian Council of Agricultural Research (ICAR) jointly published the surveillance data of the Indian Network for Fishery and Animal Antimicrobial Resistance (INFAAR) for 2019-22.
    • This report marks the first comprehensive analysis of antimicrobial resistance (AMR) trends in India’s fisheries and livestock sectors.

    About INFAAR

    • Network Formation: INFAAR, established under ICAR, comprises 20 laboratories, including 17 ICAR Research Institute Laboratories, one Central Agriculture University Laboratory, one State Agriculture University Laboratory, and one State Veterinary University.
    • Collaborative Support: Technical assistance from FAO and the United States Agency for International Development (USAID) enhances INFAAR’s capabilities for data collection and analysis.
    • Expansion Goals: INFAAR aims for further expansion to encompass more laboratories and enhance surveillance coverage.

    Antibiotic Use and AMR Trends

    • Impact of Antibiotics: Antibiotic usage in food animal production contributes to AMR development, necessitating surveillance to inform policy decisions.
    • Production Systems: Three key aquaculture systems—freshwater, brackish-water, and marine—were surveyed, covering diverse environments.
    • Panel of Antibiotics: Antibiotics tested included amikacin, ampicillin, amoxicillin-clavulanic acid, aztreonam, cefotaxime, cefepime, cefoxitin, ceftazidime, chloramphenicol, co-trimoxazole, enrofloxacin, gentamicin, imipenem, meropenem, and tetracycline.

    Surveillance Methodology

    • Sample Collection: Samples collected from 3,087 farms spanning 42 districts in 12 states of India, including fish or shrimp tissues and pond or seawater samples.
    • Bacterial Isolates: A total of 6,789 bacterial isolates were analyzed, including 4,523 freshwater, 1,809 shrimp, and 457 mariculture isolates.
    • Resistance Profiles: Resistance profiles were analyzed for Staphylococcus aureus, coagulase-negative Staphylococcus species (CONS), Escherichia coli, Vibrio parahaemolyticus, Vibrio sp., and Aeromonas species.

    Key Findings:

    (1) Resistance Patterns in Fisheries Sector

    • Species Specific Resistance: Isolates of Staphylococcus aureus and coagulase-negative Staphylococcus species exhibited high resistance against penicillin across all systems.
    • Variation across Environments: Freshwater fish showed notable resistance to ciprofloxacin, while marine samples demonstrated higher resistance to cefotaxime.
    • Shrimp Aquaculture: Notable resistance against ampicillin and cefotaxime was observed in shrimp samples, indicating a concerning trend.

    (2) Resistance Patterns in Livestock Sector

    • Animal Origins: E. coli and Staphylococcus isolates from cattle, buffalo, goat, sheep, pig, and poultry were characterized for AMR profiles.
    • Poultry Resistance: Poultry-origin isolates exhibited higher resistance rates across various antibiotics compared to other food animals.

    (3) Multidrug Resistance Analysis

    • Emergence of MDR: Approximately 39% of aquaculture-origin E. coli isolates and 15.8% of poultry isolates exhibited multidrug resistance (MDR).
    • ESBL and AmpC Producers: Detection of extended spectrum β-lactamase (ESBL) and AmpC type β-lactamase producers underscores the complexity of AMR challenges.

    Key Recommendations by the Study

    • Baseline Data: The report provides foundational data for understanding AMR trends and evaluating intervention effectiveness.
    • Judicious Use: High resistance to critical antibiotics underscores the importance of prudent antibiotic use in food animal production.
    • Policy Implications: The findings will inform policy and decision-making for AMR containment in India’s fisheries and livestock sectors.

    Conclusion

    • The INFAAR surveillance report sheds light on the evolving landscape of antimicrobial resistance in India’s fisheries and livestock sectors.
    • By highlighting resistance patterns and advocating for responsible antibiotic usage, this initiative paves the way for effective AMR containment strategies and sustainable agricultural practices.

  • The cost of legal MSP is greatly exaggerated

     

    Demystifying Minimum Support Price (MSP) | Legacy IAS Academy

    Central Idea:

    The article discusses the ongoing demands of farmers for a legal guarantee of Minimum Support Prices (MSP) in India, highlighting the necessity of such a mechanism to stabilize agricultural commodity prices and support farmers’ incomes. It addresses misconceptions surrounding MSP, emphasizing its importance in insulating farmers from market price volatility and rectifying imbalances in agricultural productivity and regional procurement.

    Key Highlights:

    • Farmers are demanding a legal guarantee for MSP to ensure price stability and protect their incomes.
    • MSP has been a longstanding mechanism in India to stabilize agricultural commodity prices, but its implementation has been limited.
    • Misconceptions about the fiscal costs and operational aspects of MSP have led to hesitancy in legalizing it, despite political consensus.
    • Government procurement under MSP primarily benefits consumers, not farmers, as it fulfills obligations under the National Food Security Act (NFSA).
    • Expansion of MSP to cover a wider range of crops and regions is necessary to address regional imbalances in agricultural productivity and support crop diversification.

    Key Challenges:

    • Misunderstanding of MSP’s fiscal implications and operational requirements.
    • Limited government intervention beyond rice and wheat procurement, leading to neglect of other crops and regions.
    • Concerns over excessive government expenditure and market distortions.
    • Ensuring effective implementation and monitoring of MSP across diverse agricultural sectors and regions.

    Main Terms or keywords for answer writing:

    • Minimum Support Price (MSP)
    • National Food Security Act (NFSA)
    • Market Price Volatility
    • Agricultural Commodity Procurement
    • Price Stability
    • Geographical Imbalances
    • Crop Diversification

    Important Phrases for answer quality enrichment:

    • Legal Guarantee for MSP
    • Price Stability Mechanism
    • Market Price Volatility
    • Government Intervention in Agricultural Markets
    • Regional Imbalances in Agricultural Productivity
    • Income Protection for Farmers

    Cabinet announces hike in MSP for kharif crops in 5% to 10% range | Business News - The Indian Express

    Quotes:

    • “A guaranteed MSP may not solve the farmers’ problems. But it offers a good opportunity to rectify the imbalances in the MSP and procurement system.”
    • “Price stability will protect the average consumer from the vagaries of inflation.”
    • “Protecting the income of farmers will help revive the rural economy.”

    Anecdotes:

    • Instances of government procurement primarily benefiting consumers rather than farmers, highlighting the need for MSP reform.
    • Farmers’ struggles with declining real incomes and wages, reflecting long-standing neglect of the agrarian economy.

    Useful Statements:

    • “Misconceptions surrounding the fiscal costs of MSP overlook its role in stabilizing prices and supporting farmers’ incomes.”
    • “Expansion of MSP to cover a wider range of crops and regions is necessary to address regional imbalances in agricultural productivity.”

    Examples and References:

    • Government procurement data for rice and wheat compared to other crops, illustrating limited intervention beyond major staples.
    • Comparative analysis of MSP implementation in India and other countries with similar price stabilization mechanisms.

    Facts and Data:

    • Government procurement figures for rice and wheat in recent years.
    • Estimates of the potential fiscal costs of implementing a legal guarantee for MSP.
    • Statistics on declining real incomes and wages in the agrarian sector.

    Critical Analysis:

    • Emphasizes the importance of MSP in stabilizing agricultural prices and supporting farmer livelihoods.
    • Addresses misconceptions and challenges surrounding MSP implementation.
    • Advocates for reforms to expand MSP coverage and address regional imbalances in agricultural productivity.

    Way Forward:

    • Implement legal guarantee for MSP to ensure price stability and support farmer incomes.
    • Expand MSP coverage to include a wider range of crops and regions.
    • Enhance monitoring and evaluation mechanisms to ensure effective implementation of MSP.
    • Address misconceptions and concerns regarding fiscal costs and market distortions associated with MSP.

    Overall, the article underscores the necessity of legalizing MSP to support farmers’ incomes, stabilize agricultural prices, and address long-standing neglect in the agrarian sector. It advocates for comprehensive reforms to expand MSP coverage and ensure its effective implementation across diverse agricultural sectors and regions.

  • Some Basic Facts about Indian Farmers

    Introduction

    • Amidst the ongoing farmer protests, the demand for a legal assurance backing Minimum Support Prices (MSPs) has taken center stage, sparking debates and polarizing opinions.
    • Delving into the intricacies of MSPs is crucial to grasp the gravity of this contentious issue.

    Deciphering MSPs: A Primer

    • Fundamental Concept: MSPs, or Minimum Support Prices, signify the price floor set by the government for various crops, serving as a safety net to safeguard farmers’ incomes.
    • Ramifications: The significance of MSPs transcends mere agricultural economics, influencing farmers’ livelihoods, consumer prices, and even governmental budgetary allocations.

    Backdrop of Farmer Protests

    • Escalating Tensions: The introduction and subsequent repeal of three farm laws by the current Union government in 2020 have catalysed widespread farmer protests, drawing attention to the MSP debate.
    • Polarized Discourse: The discourse surrounding farmer protests has veered into a realm of political polarization, overshadowing the substantive issues at hand.

    Key Insights into India’s Agricultural Landscape

    [1] Shift in Economic Dynamics

    • Historical Perspective: Post-Independence, agriculture commanded a significant share of India’s workforce and economic output, with around 70% of the workforce engaged in the sector.
    • Contemporary Scenario: Despite a decline in agriculture’s contribution to GDP, the proportion of the agricultural workforce remains relatively high, signaling a skewed economic paradigm. In 2011, approximately 6% of the workforce was engaged in agriculture.

    [2] Transition in Farming Patterns

    • Rising Labour Dependency: The shift from cultivators to agricultural laborers underscores the evolving nature of farming practices, reflecting growing challenges in sustaining agricultural livelihoods. In 1951, 72% of all farm workers were cultivators, whereas by 2011, this proportion decreased to 45%.
    • Small Holdings and Indebtedness: Small and marginal landholdings coupled with high levels of indebtedness paint a grim picture of the financial vulnerability faced by Indian farmers. According to a 2019 survey, around 70% of all agricultural households have a land holding size of less than 1 hectare, and almost 50% are indebted.

    [3] Income Disparities and Debt Burdens

    • Regional Disparities: Regional variations in farm incomes and indebtedness highlight the multifaceted nature of agrarian distress. In 2019, the average monthly income per household was Rs 10,218, while 50% of all farm households were indebted.
    • Terms of Trade Dynamics: Fluctuating terms of trade between farmers and non-farmers further exacerbate farmers’ financial woes, reflecting structural imbalances in the agricultural sector. The Terms of Trade (ToT) between farmers and non-farmers have remained stagnant or negative since 2010-11.

    [4] Global Perspectives on Agricultural Support

    • Comparative Analysis: India’s standing in terms of producer protection and agricultural support reveals stark disparities, challenging misconceptions about excessive financial assistance to Indian farmers.
    • India is Lagging: India ranks last among the countries compared by the OECD on producer protection and lags in terms of the “total support estimate” (TSE) relative to other countries and regions.

    Navigating the Complexities

    • Beyond MSPs: While MSPs occupy a prominent position in the discourse, addressing India’s agricultural woes requires a holistic approach encompassing structural reforms, income augmentation, and infrastructural development.
    • Long-standing Challenges: Structural deficiencies within the agricultural sector necessitate comprehensive interventions, transcending short-term fixes and political rhetoric.

    Conclusion

    • As India grapples with the intricacies of farmer protests and MSP demands, a nuanced understanding of agricultural dynamics is imperative to devise sustainable solutions.
    • Addressing the root causes of agrarian distress demands concerted efforts aimed at bolstering farmers’ resilience, fostering equitable economic growth, and ushering in transformative reforms to ensure the viability of India’s agricultural ecosystem.

    Try this question from CS Mains (2018)

    What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low-income trap? [150 Words, 10 Marks]

    [wpdiscuz-feedback id=”c37r4lomki” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

  • Fair and Remunerative Price (FRP) of Sugarcane

    Introduction

    • The Cabinet Committee on Economic Affairs approved ₹340/quintal as the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2024-25 at sugar recovery rate of 10.25%.
    • This is about 8% higher than FRP of sugarcane for the current season 2023-24.

    Fair and Remunerative Price (FRP): Explained

    • Legal Framework: FRP is established under the Sugarcane Control Order, 1966.
    • Minimum Payment: It denotes the minimum price obligated to be paid by sugar mills to farmers for their sugarcane produce.
    • State Agreed Price (SAP): States have the authority to determine their SAP, typically higher than the FRP.
    • The fixation of FRP considers various factors, including:
    1. Cost of sugarcane production,
    2. Return from alternative crops,
    3. Consumer sugar prices,
    4. Sale price of sugar,
    5. Sugarcane-to-sugar recovery rate,
    6. Income from by-products (e.g., molasses, bagasse),
    7. Adequate profit margins for sugarcane growers.

    Determining Sugarcane Prices

    • Central Determination: FRP is set by the Central Government based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and endorsed by the Cabinet Committee on Economic Affairs.
    • State Role: States announce SAP, often surpassing the FRP.

    Minimum Selling Price (MSP) for Sugar

    • Market Dynamics: Sugar prices fluctuate based on market demand and supply.
    • Introducing MSP: To safeguard farmers’ interests, MSP for sugar was introduced in 2018.
    • Components Considered: MSP incorporates elements of FRP for sugarcane and the minimal conversion cost of efficient mills.

    Basis of Price Determination

    • Transition from SMP to FRP: In 2009-10, FRP replaced the Statutory Minimum Price (SMP) of sugarcane.
    • Consultative Process: The Central Government, in consultation with state authorities and sugar industry associations, determines the sugarcane price based on CACP recommendations.

    Try this PYQ from CSP 2019:

    Q. The Fair and Remunerative Price (FRP) of sugarcane is approved by the:

    (a) Cabinet Committee on Economic Affairs

    (b) Commission for Agricultural Costs and Prices

    (c) Directorate of Marketing and Inspection, Ministry of Agriculture

    (d) Agricultural Produce Market Committee

     

    [wpdiscuz-feedback id=”ov8suchbe6″ question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

  • FCI Capital raised from Rs 10,000 cr to Rs 21,000 cr

    Introduction

    • The government has raised the authorized capital of the state-run Food Corporation of India (FCI) from ₹10,000 crore to ₹21,000 crore, marking a significant stride in bolstering its operational capabilities.
    • This initiative, announced by the Food Ministry, underscores the government’s commitment to strengthening FCI’s role in ensuring food security and safeguarding farmers’ interests.

    About Food Corporation of India (FCI)

    • Establishment and Objectives: Founded in 1965 under the Food Corporation Act, 1964, FCI serves as a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India.
    • Core Objectives: FCI is entrusted with the tasks of providing price support to farmers by
    1. Procuring grains at Minimum Support Prices (MSP),
    2. Supplying grains to Public Distribution System (PDS), and
    3. Maintaining strategic grain reserves.

    Initiatives to Enhance FCI’s Efficiency

    • Integrated IT Systems: FCI is implementing integrated IT solutions and adopting e-office initiatives to transition towards a paperless work environment and streamline operational functions effectively.
    • Infrastructure Development: FCI is investing in infrastructure projects such as cement road construction, roof maintenance, and weighbridge modernization to enhance operational efficiency.
    • Quality Assurance: Efforts are underway to procure lab equipment and develop software platforms for quality assessment, ensuring adherence to stringent quality standards.

    Significance of Increased Authorized Capital

    • Operational Strengthening: The augmentation of authorized capital aims to bolster FCI’s operational efficiency, reduce interest burdens, and positively impact government subsidies.
    • Modernization Imperative: In addition to financial infusion, the government emphasizes the modernization of storage facilities, transportation networks, and adoption of advanced technologies for enhanced performance.
    • Empowering Farmers: The government’s commitment to MSP-based procurement and investment in FCI’s operational capabilities reflects a collaborative approach towards empowering farmers, fortifying the agricultural sector, and ensuring nationwide food security.

    Relevance of FCI

    • Bedrock of National Food Security: FCI plays a pivotal role in implementing the National Food Security Act, ensuring procurement and distribution to far-flung areas for national food security.
    • Response to Crisis: During crises such as the Covid pandemic and migrant crises, FCI has effectively tackled challenges of hunger and starvation.
    • Fight against Malnutrition and Poverty: FCI’s role in the Public Distribution System (PDS) contributes to combating malnutrition and poverty, promoting inclusive growth.
    • Support to Farmers: By purchasing crops at MSP, FCI provides financial security to farmers, making agriculture remunerative.

    Challenges Faced by FCI

    • Limited Farmer Participation: Less than 10% of farmers can sell their produce to government agencies due to various factors such as lack of awareness or access to the MSP system, benefiting only large farmers in certain states like Punjab.
    • Storage Overload: FCI has stored double the grains than the prescribed buffer limits, leading to a shortage in the open market, inflation, and deterioration of grains due to limited storage capacity.
    • Leakages in Distribution: According to NSSO 2011, 40-60% of grains distributed through the Public Distribution System (PDS) are siphoned off, highlighting significant challenges in distribution efficiency and governance.

    Way Forward:

    Shanta Kumar Committee (2014) Recommendations

    • The Shanta Kumar Committee proposed a comprehensive set of recommendations aimed at reforming the Food Corporation of India (FCI) and enhancing its efficiency in managing food systems.
    • The committee proposes designating FCI as an “Agency for Innovation in Food Management Systems” to foster creativity and efficiency in managing food resources.

    [A] Procurement Stage

    • Outsourcing Procurement: Recommends outsourcing procurement activities in better-performing states like Punjab while centralizing procurement in states like Bihar, Assam, Bengal, and eastern Uttar Pradesh.
    • Cash Transfers to Farmers: Suggests exploring cash transfers to farmers as an alternative mechanism for procurement.
    • Buffer Stock Quotas: Advocates setting buffer stock quotas instead of open-ended procurement to optimize resource utilization.
    • Stringent Quality Checks: Emphasizes the need for stringent quality checks by third parties to ensure the quality of procured grains.

    [B] Storage Stage

    • Outsourcing Stocking Operations: Recommends outsourcing stocking operations to various agencies such as the Central Warehousing Corporation (CWC), State Warehousing Corporation (SWC), and the private sector under the Private Entrepreneur Guarantee (PEG) scheme.
    • Automatic Liquidation of Excess Stock: Proposes automatic liquidation of excess buffer stock in the open market to prevent overstocking and market distortions.
    • Maintaining Strategic Buffer Reserves: Suggests maintaining strategic buffer reserves to stabilize markets and address emergencies effectively.

    [C] Distribution Stage

    • Expanding Coverage under NFSA: Recommends expanding coverage under the National Food Security Act 2013 to encompass 40% of the population, ensuring wider access to subsidized food grains.
    • End-to-End Computerization: Advocates for end-to-end computerization of the distribution system to enhance transparency, efficiency, and accountability.
    • Online Tracking: Proposes online tracking of the entire system from procurement to retail distribution to facilitate real-time monitoring and management.

    [D] Transportation Improvements

    • Integration of Road and Rail Transport: Suggests integrating road transport along with rail to optimize transportation networks and reduce dependency on rail.
    • Containerization: Recommends using containers instead of gunny bags for efficient and hygienic transportation of food grains.
    • Utilization of Inland Waterways: Advocates utilizing inland waterways for transporting food grains, leveraging cost-effective and eco-friendly transportation modes.
    • Automation in Loading and Unloading: Proposes automation in loading and unloading processes to enhance efficiency and minimize manual labor.

    [E] Operational Overhaul

    • Doing Away with FIFO Principle: Suggests doing away with the FIFO (first in, first out) principle to release hygienic food grains on time and prevent wastage.
    • Targeting Chronically Starved Areas: Recommends implementing a pre-positioning shipment policy to store food grains nearer to chronically starved areas, ensuring timely access to essential supplies during emergencies.
    • Ensuring Last-Mile Connectivity: Advocates leveraging a network of Self-Help Groups (SHGs) and Farmer Producer Organizations (FPOs) to ensure last-mile connectivity and efficient distribution of food grains.

  • Global Pulse Confederation (GPC) held in New Delhi

    Introduction

    • The Global Pulse Confederation (GPC) has initiated the three-day convention — Pulses 24 — in New Delhi, India.

    About Global Pulse Confederation (GPC)

    Description
    Formation Founded in 2016 through the merger of the Global Pulse Confederation (GPC) and the International Starch Institute (ISI).
    Headquarters Dubai, United Arab Emirates.
    Mission Represents the global pulse industry, aiming to promote the sustainable growth of the pulse industry worldwide.
    Focus Areas
    • Advocating for policies supporting the pulse industry’s interests.
    • Providing resources and support to pulse industry stakeholders.
    • Facilitating research and innovation in pulse production and utilization.
    Membership Open to businesses, organizations, and individuals involved in the pulse industry, including growers, processors, traders, and researchers.
    India’s Connect India, being a major producer and consumer of pulses, actively participates in the GPC and holds membership status, contributing to the organization’s objectives.

    Key Highlights from Pulses 24 Convention

    • Production Growth: Pulses production in India has increased by 60% over the past decade, reaching 270 lakh tonnes in 2024 from 171 lakh tonnes in 2014.
    • Partnership Goals: Mr. Goyal emphasized the partnership between NAFED and GPC, aiming to position pulses as a vital dietary component not only in India but also globally.
    • Minimum Support Price (MSP): The Centre ensures an MSP offering 50% over the actual cost of production to farmers, resulting in attractive returns on investment. Significant increases in MSP for various pulses were highlighted, reaching as high as 117% in masoor and 90% in moong over the past decade.
    • Self-Sufficiency by 2027: India’s progress towards self-reliance in chickpeas and other pulses, with efforts focused on achieving self-sufficiency in all pulses by 2027. Initiatives include the supply of new seed varieties and the expansion of tur and black gram cultivation.
    • Global Knowledge Sharing: GPC president emphasized India’s potential to benefit from the conference by exchanging best practices and technological advancements in pulse cultivation from other countries.
    • Focus on Smallholding Farmers: Pulses are noted for their soil benefits and nutritional value, particularly beneficial for smallholding farmers.

  • The cost of legal MSP is greatly exaggerated

    Centre Sets Minimum Support Price for Kharif Crops

    Central Idea:

    Farmers in India are demanding a legal guarantee for Minimum Support Prices (MSP) to stabilize agricultural commodity prices and ensure their livelihoods. Despite the longstanding demand and political consensus, successive governments have been hesitant to implement this, primarily due to concerns about fiscal costs. However, the actual costs and benefits of such a guarantee are often misunderstood, leading to fear mongering and misconceptions about its implications.

    Key Highlights:

    • Farmers’ demands for a legal guarantee for MSP stem from the need for stability in agricultural commodity prices to protect their incomes.
    • MSP is a mechanism to ensure price stability for essential agricultural commodities, but its implementation is limited, mainly focusing on rice and wheat.
    • Misconceptions about the fiscal costs of MSP guarantee have hindered its implementation, despite political consensus and support from various parties and unions.
    • The cost of procuring agricultural produce is often misconstrued, with the majority being a subsidy to consumers rather than to farmers.
    • A guaranteed MSP offers an opportunity to rectify imbalances in the MSP and procurement system, promoting regional diversification and crop expansion.
    • Neglect of the agrarian economy has led to declining real incomes and wages for farmers, highlighting the urgency of reforming the MSP system.

    Key Challenges:

    • Misunderstanding and fear mongering about the fiscal costs and implications of implementing a legal guarantee for MSP.
    • Limited implementation of MSP, primarily focusing on rice and wheat, leaving other crops and regions underserved.
    • Neglect of the agrarian economy leading to declining real incomes and wages for farmers.
    • Political hesitancy to implement MSP guarantee despite consensus and support from various stakeholders.
    • Lack of comprehensive understanding of the benefits of MSP guarantee in stabilizing agricultural commodity prices and reviving the rural economy.

    Main Terms:

    • Minimum Support Prices (MSP)
    • National Food Security Act (NFSA)
    • Price Stability
    • Market Intervention
    • Agricultural Commodity Prices
    • Fiscal Costs
    • Marketable Surplus
    • Procurement System
    • Agrarian Economy
    • Regional Diversification

    Important Phrases:

    • Legal guarantee for MSP
    • Fear mongering and misconceptions
    • Fiscal requirements
    • Price volatility
    • Market intervention
    • Income protection
    • Regional imbalances
    • Declining real incomes
    • Rural economy revival
    • Comprehensive reform

    Quotes:

    • “A guaranteed MSP may not solve the farmers’ problems. But it offers a good opportunity to rectify the imbalances in the MSP and procurement system.”
    • “Protecting the income of farmers will help revive the rural economy at a time when it’s struggling with deficient demand and rising inflation.”
    • “Misconceptions about the fiscal costs of MSP guarantee have hindered its implementation, despite political consensus and support from various parties and unions.”

    Anecdotes:

    • The article references the fear mongering and misconceptions similar to those observed during the enactment of the National Food Security Act and the National Rural Employment Guarantee Act.
    • It highlights the success of MSP implementation for rice and wheat during the last two years, where market prices were higher than MSP.

    Useful Statements:

    • “Despite political consensus, successive governments have dithered on legalizing this mechanism, primarily due to the fear of excessive fiscal requirements.”
    • “A guaranteed MSP offers an opportunity to rectify the imbalances in the MSP and procurement system, promoting regional diversification and crop expansion.”
    • “Protecting the income of farmers will help revive the rural economy, particularly during times of deficient demand and rising inflation.”

    Examples and References:

    • Reference to the successful implementation of MSP for rice and wheat during the last two years, despite market prices being higher than MSP.
    • Comparison with other countries where similar mechanisms exist to stabilize agricultural commodity prices.
    • Mention of the fear mongering and misconceptions observed during the enactment of previous agricultural legislations like the National Food Security Act.

    Facts and Data:

    • Government procurement of wheat in 2022 was only 19 million tonnes against a target of 44 million tonnes.
    • In 2023, government procurement of rice and wheat was 26 million tonnes against a target of 35 million tonnes.
    • Reference to the cost of procuring agricultural produce being misconstrued, with the majority being a subsidy to consumers rather than to farmers.

    Critical Analysis:

    The article provides a comprehensive analysis of the demands of farmers for a legal guarantee for MSP, highlighting the misconceptions and challenges surrounding its implementation. It emphasizes the importance of rectifying imbalances in the MSP and procurement system to promote regional diversification and crop expansion. However, it could further delve into the specific policy measures needed to address these challenges and provide a more detailed analysis of the potential benefits of implementing a guaranteed MSP.

    Way Forward:

    • Implementing a legal guarantee for MSP to ensure stability in agricultural commodity prices and protect farmers’ incomes.
    • Rectifying imbalances in the MSP and procurement system to promote regional diversification and crop expansion.
    • Addressing misconceptions and fear mongering surrounding the fiscal costs and implications of MSP guarantee through public awareness campaigns and comprehensive policy discussions.
    • Engaging with stakeholders, including farmers’ unions, political parties, and policymakers, to formulate and implement effective MSP policies that address the needs and concerns of all parties involved.
    • Investing in rural infrastructure, storage facilities, and crop diversification programs to strengthen the agrarian economy and revitalize rural communities.
  • From Europe to India, why are Farmers angry?

    From Europe to India, why are Farmers angry?

    Introduction

    • Farmers worldwide are mobilizing in protest against various issues ranging from subsidy cuts to environmental regulations.
    • The unrest is witnessed across continents, reflecting a shared struggle against challenges impacting agricultural livelihoods.

    Farmers Protests: Worldwide Extent

    • Europe: Farmers in several EU member-nations such as Belgium, France, Germany, and Spain have utilized tactics like tractors in city invasions and supermarket raids to protest subsidy cuts, high energy prices, and cheap imports. They protest against EU environment policies aimed at achieving net-zero emissions by 2050, which include pesticide reduction and nature restoration initiatives.
    • South America: Protests spanned 67% of countries, driven by economic downturns and droughts, with Brazilian farmers rallying against unfair competition from genetically modified maize.
    • Europe: 47% of countries saw protests against low crop prices and rising costs, with French farmers opposing low-cost imports and inadequate subsidies.
    • North and Central America: Protests occurred in 35% of countries, with Mexican farmers protesting low prices and Costa Rican farmers seeking government assistance amid debt.
    • Africa: 22% of countries witnessed protests due to poor pricing and high production costs, with Kenyan potato farmers demanding better prices and Cameroonian farmers opposing cocoa export bans.
    • New Zealand: Farmers protested against government regulations, while Australian farmers opposed proposed high-voltage powerlines.

    Asian Protests

    • India: Farmers across nine states demand guaranteed crop prices and loan waivers, echoing protests in Nepal against unfair vegetable pricing.
    • Malaysia and Nepal: Protests stem from low rice and sugarcane prices, respectively.

    Government Responses

    • France and Germany have made concessions such as rolling back fuel subsidy cuts and gradually phasing out fuel subsidies.
    • EU politicians have voted against proposed pesticide regulations, and climate rules are being revised ahead of elections.
    • Nature restoration plans have been deferred for now.

    Issues Prompting Indian Protests

    • Indian farmers demand legal backing for minimum support prices (MSP) and expansion of MSP coverage beyond rice and wheat, as per a 2021 agreement.
    • Import of cheap edible oil and pulses, alongside climate shocks, have impacted farmer earnings.
    • Additional demands include higher import duties, changes to crop insurance, better seed quality, debt waivers, and social security benefits.

    Conclusion

    • Farmer protests globally reflect a unified struggle against economic hardships, environmental regulations, and policy decisions impacting agricultural sustainability and livelihoods.
    • Addressing these concerns requires proactive government responses and comprehensive policy reforms to ensure the welfare of farmers and agricultural resilience.

    Also read:

    Farmers’ Demands over Minimum Support Price (MSP) Guarantee

  • Farmers’ Demands over Minimum Support Price (MSP) Guarantee

    Farmers’ Demands over Minimum Support Price (MSP) Guarantee

    Introduction

    • More than 200 farmers’ unions from Punjab plan to march to Delhi, demanding a legal guarantee for Minimum Support Price (MSP).
    • The imposition of Section 144 across Delhi highlights the significance of this protest.

    Behind the Protest: Key Demands

    • Legal Guarantee for MSP: Farmers demand a law to enforce MSP for all crops, aligned with the recommendations of the Dr. M S Swaminathan Commission.
    • Full Debt Waiver: Complete debt waiver for farmers and laborers.
    • Land Acquisition Act Implementation: Implementation of the Land Acquisition Act of 2013, with provisions for farmer consent and fair compensation.
    • Withdrawal from WTO: India’s withdrawal from the World Trade Organization (WTO) and freezing of all free trade agreements.
    • Pensions for Farmers: Provision of pensions for farmers and farm laborers.
    • Compensation for Protest Deaths: Compensation for farmers who lost their lives during protests, including job opportunities for their family members.
    • Scrapping of Electricity Amendment Bill 2020: Rejection of the Electricity Amendment Bill 2020.
    • Enhanced MGNREGA Benefits: Increase in the number of days of employment under MGNREGA, higher daily wage, and linkage with farming activities.
    • Penalties for Fake Seeds and Pesticides: Imposition of strict penalties on companies producing fake seeds, pesticides, and fertilizers.
    • National Commission for Spices: Establishment of a national commission for spices such as chili and turmeric.
    • Indigenous Peoples’ Rights: Ensuring the rights of indigenous peoples over water, forests, and land.

    Why such furore over MSP?

    • Market Dynamics: Farmers often operate in a buyer’s market, lacking the bargaining power to influence prices for their produce.
    • Need for Stability: MSP provides farmers with a safety net, ensuring they receive a minimum price for their crops regardless of market fluctuations.

    What is the Minimum Support Price (MSP)?

    • History of MSP:
    1. MSP in India originated in response to food shortages in the 1960s, notably during the Bihar famine of 1966–1967.
    2. Agricultural Price Commission (APC) was established in 1965 to implement price policies like procurement at pre-decided prices and MSP.
    3. Over time, the APC evolved into the Commission for Agricultural Costs and Prices (CACP) in 1985, with broader terms of reference.
    • Announcement: The government bases its announcement on the recommendations given by the Commission for Agricultural Costs & Prices (CACP).
    • Formulae for Calculation:
    1. A2: Costs incurred by the farmer in production of a particular crop. It includes several inputs such as expenditure on seeds, fertilisers, pesticides, leased-in land, hired labour, machinery and fuel
    2. A2+FL: Costs incurred by the farmer and the value of family labour
    3. C2: A comprehensive cost, which is A2+FL cost plus imputed rental value of owned land plus interest on fixed capital, rent paid for leased-in land
    • National Commission of Farmers also known as the Swaminathan Commission (2004) recommended that the MSP should at least be 50 per cent more than the weighted average CoP, which it refers to as the C2 cost.
    • The government maintains that the MSP was fixed at a level of at least 1.5 times of the all-India weighted average CoP, but it calculates this cost as 1.5 times of A2+FL.
    • Crops covered are-
    1. The CACP recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
    2. The mandated crops include 14 crops of the kharif season, 6 rabi crops and 2 other commercial crops.

    Criticism of MSP and Alternatives

    • Economists’ Perspective: Many economists criticize government-fixed MSPs, advocating for income support schemes as a more efficient alternative.
    • Income Support Schemes: Direct income support offers fixed payments to farmers, irrespective of crop choice or market conditions, aiming to provide stable income.

    Approaches to Guarantee MSP

    • Conventional Methods: Historically, MSP was enforced through mandatory buyer payments or government procurement. However, these methods face challenges in implementation and sustainability.
    • Price Deficiency Payments (PDP): PDP offers an alternative approach, wherein the government compensates farmers for the difference between MSP and market price, without physical procurement.

    PDP Models in Practice

    [1] Madhya Pradesh: Bhavantar Bhugtan Yojana

    • Model: It experimented with PDP but encountered challenges in sustainability and central support.
    • Operational Mechanism: Market price is determined based on average modal rates in APMC mandis, with payments backed by sale agreements, weighment slips, and payment letters.

    [2] Haryana: Bhavantar Bharpai Yojana

    • Model: It combines physical procurement with PDP, demonstrating feasibility in certain crops.
    • Operational Platform: BBY operates on the ‘Meri Fasal, Mera Byaura’ portal, where farmers register their details and area sown under different crops.
    • Registration Process: Registration for kharif and rabi crops is open during specific periods, followed by crop area verification through satellite imaging.
    • Hybrid Approach: Haryana combines physical procurement with PDP under BBY, depending on the gap between MSP and market price.
    • Payment Structure: PDP rates are fixed, derived from average quotes at the National Commodity and Derivatives Exchange, with farmers paid based on the three-year average yield for their block/sub-district.

    Way Forward

    • Scaling PDP Nationwide: A nationwide PDP scheme, with central funding, could incentivize states to adopt similar models, leveraging existing market infrastructure for efficient MSP delivery.
    • Infrastructure Development: Investing in market infrastructure and transaction recording systems is crucial for widespread MSP implementation, ensuring transparency and accountability.

    Conclusion

    • Policy Implications: The debate over MSP guarantee underscores the need for balanced policies that address farmers’ concerns while ensuring market efficiency.
    • Alternative: Exploring innovative mechanisms like PDP alongside traditional approaches can offer a viable solution to the challenge of MSP guarantee, benefiting farmers across diverse agricultural landscapes.

    Back2Basics: National Commission on Farmers, 2004 (MS Swaminathan Commission)

    • Established in 2004 under the chairmanship of Prof. M. S. Swaminathan.
    • Submits five reports between December 2004 and October 2006.
    • Reflects priorities outlined in the Common Minimum Programme.

    Key Recommendations

    • Addressing Agrarian Distress: Implement holistic national policy for farmers; Ensure farmers’ control over resources like land, water, credit, and markets.
    • Land Reforms: Distribute surplus land and prevent diversion of agricultural land; Advocate for inserting “Agriculture” in the Concurrent List of the Constitution.
    • Water Management: Ensure sustained water access and promote rainwater harvesting.
    • Infrastructure Investment: Increase public investment in agricultural infrastructure; Promote conservation farming and soil health.
    • Credit and Financial Support: Expand rural credit, lower interest rates, and establish agriculture risk fund; Provide debt restructuring and health insurance to farmers.
    • Food Security: Establish universal public distribution system and nutrition support programs.
    • Preventing Farmers’ Suicides: Provide measures to prevent farmers’ suicides, including health insurance and debt restructuring.
    • Market Reforms: Promote farmers’ organizations, improve MSP implementation, and market reforms.
    • Employment Opportunities: Focus on creating productive employment opportunities and improving wage parity.
    • Bioresources: Preserve traditional rights, conserve biodiversity, and enhance crop and animal breeds.