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Subject: Agriculture

  • India Initiates Review of Asean Trade Pact to Boost Domestic Manufacturing

    Why in the news?

    The review aims to address concerns such as the inverted duty structure, which puts local manufacturers at a disadvantage.

    Trade deficit issue with ASEAN 

    • High trade deficit: The trade deficit between India and the Association of Southeast Asian Nations (ASEAN) has been a significant issue, with the deficit widening to USD 43.57 billion in the last fiscal from USD 25.76 billion in 2021-22 and just USD 5 billion in 2010-11
    •  Review AITIGA:This has led to a review of the ASEAN-India Trade in Goods Agreement (AITIGA) by 2025, aiming to address concerns about trade barriers, abuse of the agreement, and the growing trade gap between India and the ASEAN region

    ASEAN-India Trade in Goods Agreement (AITIGA)

    • The ASEAN-India Trade in Goods Agreement (AITIGA) is a trade agreement between the ten member states of ASEAN and India, signed in 2009 and implemented in 2010. The agreement aims to establish a free trade area between the parties, covering trade in physical goods and products, and progressively eliminating duties on 76.4 percent of goods. 

    The trade deficit between India and the ASEAN region is primarily due to the following reasons:

    • Tariff disparities: India’s tariffs were much higher than partner countries, leading to a significant reduction in tariffs for partner countries, which in turn caused India’s imports to grow faster than exports. This imbalance has been widening since 2010-11, the year India entered into an agreement with ASEAN
    • Non-tariff barriers and regulations: India’s exports to ASEAN have been affected due to non-reciprocity in FTA concessions, non-tariff barriers, import regulations, and quotas. These factors have hindered India’s ability to fully benefit from the FTA
    • Routing of goods from third countries: There have been concerns about the routing of goods from third countries, such as China, to ASEAN countries with minimum value addition and then being imported into India, misusing the India-ASEAN FTA. This practice has contributed to the growing trade deficit
    • Limited market access for Indian products: India’s exports of products such as textile clothing, footwear, food products, and minerals don’t have a significant place in ASEAN imports, while there is a higher dependence on products such as vegetables, fuels, chemicals, and metals from ASEAN, which are essential commodities

     Conclusion 

    India’s review of the ASEAN-India Trade in Goods Agreement aims to tackle the widening trade deficit by addressing tariff disparities, non-tariff barriers, and the misuse of the agreement, crucial steps toward fostering fair and balanced trade relations.

    Mains question for practice 

    Q Discuss the factors contributing to high  deficit between India and ASEAN. 

     

  • Understanding perspectives: Farmers’ Protests raise divisive opinions

    Why in the news? 

    A recent survey conducted by CSDS-Lokniti aimed to gather opinions regarding the ongoing farmer protests.

    Opinion about the Farmer Protest:

    The major key demands of Farmers in India include:

    • On Minimum Support Price (MSP): Farmers demand a legal guarantee for MSP for crops, which is a crucial lifeline for farmers facing market uncertainties.
    • On Electricity Act 2020: Farmers are demanding the repeal of the Electricity Act 2020, which they believe will negatively impact their income.
    • On Compensation: Farmers are demanding compensation for farmers who died during the previous agitation in Lakhimpur Kheri.
    • Withdrawal of Cases: Farmers are demanding the withdrawal of cases registered against farmers during the 2020-21 agitation.

    Government Initiatives: 

    • Negotiations: The government has taken several steps to address the farmer agitation, including negotiations with protesting farmers, proposing the formation of a committee to provide statutory backing to the Minimum Support Price (MSP), and engaging in talks with farmer representatives.
    • Demands: Despite promises made to farmers in 2021, the government has not fully responded to their demands, leading to continued tensions and protests. The government’s reaction to the protest still appears to be focused on maintaining law and order rather than proactively addressing the underlying issues raised by the farmers

    Conclusion: The CSDS-Lokniti 2024 pre-poll survey highlights divisive opinions on farmer protests, citing demands for an MSP guarantee, repeal of the Electricity Act, and compensation for fatalities. Despite negotiations, unresolved grievances persist, indicating a need for proactive governmental action and dialogue

  • CDP-SURAKSHA Digital Platform for Horticulture Subsidies

    Why in the news?

    The government has introduced a new platform called CDP-SURAKSHA for disbursing subsidies to horticulture farmers under the Cluster Development Programme (CDP).

    India’s Horticulture Sector:

    • India’s horticulture sector contributes nearly 1/3rd to the agriculture GVA, making a substantial economic contribution.
    • The total production of horticulture crops has increased, from 240.53 million tonnes in 2010-11 to 334.60 million tonnes in 2020-21.

    What is CDP-SURAKSHA?

    • CDP-SURAKSHA is a digital platform acronym for “System for Unified Resource Allocation, Knowledge, and Secure Horticulture Assistance.”
    • It facilitates instant subsidy disbursal to farmers’ bank accounts using the e-RUPI voucher from the National Payments Corporation of India (NPCI).
    • It provides upfront subsidies during material purchase, and vendors receive payment only after farmers verify delivery.

    Key Features include database integration with PM-KISAN, cloud-based server space from NIC, UIDAI validation, eRUPI integration, LGD, content management system, geotagging, and geo-fencing.

    Operational Mechanism of CDP-SURAKSHA

    1. Farmer Interaction:
      • Farmers, vendors, implementing agencies (IA), cluster development agencies (CDAs), and National Horticulture Board (NHB) officials can access the platform.
      • Farmers can log in using their mobile number, place orders for planting material, and contribute their share of the cost.
    2. Subsidy Disbursement:
      • After raising the demand, farmers receive the subsidy amount automatically on the screen.
      • Upon paying their contribution, an e-RUPI voucher is generated and received by the vendor, who supplies the planting material.
      • Farmers verify the delivery through geo-tagged media, following which the IA releases payment to the vendor.

    Significance of e-RUPI

    • e-RUPI is a one-time payment mechanism redeemable without cards or digital payment apps, used for specific purposes.
    • It is shared with beneficiaries via SMS or QR code and accepted at merchants supporting e-RUPI.

    Old System vs. CDP-SURAKSHA:

    • Previously, farmers purchased planting materials independently and then approached officials for subsidy release.

    Cluster Development Program (CDP)

     

    • CDP, under National Horticulture Board (NHB), aims to leverage horticulture clusters’ geographical specialization for integrated development.
    • It is a Central Sector Scheme aimed at growing and developing identified horticulture clusters to make them globally competitive.
    • 55 clusters have been identified, with 12 selected for the pilot phase, covering 9 lakh hectares and 10 lakh farmers.
    • It provides government assistance based on cluster size—up to Rs 25 crore for mini clusters, Rs 50 crore for medium, and Rs 100 crore for mega clusters.

     

    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

  • Robusta Coffee price touches All-time High

    What is the news?

    • Robusta Coffee farmers in South India are celebrating as their produce fetches an all-time high price.
    • The farmgate price of raw Robusta coffee berries reached ₹172 per kilogram (kg) in the Wayanad market, a significant increase from ₹115 per kg last year.

    Coffee Cultivation in India

    • The coffee cultivation in India began with the planting of 7 seeds of coffee during 1600 AD by saint Baba Budan, in the courtyard of his hermitage in Chikmagalur, Karnataka.
    • Commercial plantations of coffee started in the 18th century under British entrepreneurship.
    • Today, India is among the top 10 coffee-producing countries, with about 3% of the global output.

    Major Varieties Cultivated

    Characteristics Altitude Range Flavor Profile Popular Varieties Regions
    Arabica Coffee Known for mild flavor, aromatic profile, and smooth taste. 800 – 1600 meters above sea level Mild, slightly sweeter, softer taste Kents, S.795, Cauvery, Chandragiri Coorg (Karnataka), Wayanad (Kerala), Nilgiris (Tamil Nadu), Chikmagalur (Karnataka)
    Robusta Coffee Characterized by strong and bold flavor, higher caffeine content, and somewhat bitter taste. Sea level to about 800 meters Strong, bold, somewhat bitter S.274, CxR hybrids Chikmagalur (Karnataka), Coorg (Karnataka), Wayanad (Kerala), Araku Valley (Andhra Pradesh)
    Liberica and Excelsa Less common varieties, with limited plantings in specific regions. Variable Variable Variable Limited plantings; sporadic regions

    Agro-climatic conditions needed for Coffee:

    • Indian coffee has a unique position as it is shade-grown and grown at elevations, while other major producing countries grow coffee in flat lands.
    • It is a tropical plant which is also grown in semi-tropical climate.
    • 16° – 28°C temperature, 150-250cm rainfall and well-drained slopes are essential for its growth.
    • Low temperature, frost, dry weather for a long time and harsh sunshine are harmful for its plant.
    • Coffee plants grow better in the laterite soils of Karnataka in India.

    Market Dynamics

    • Karnataka is the largest producer accounting for about 70% of the total coffee production in India.
    • It is followed by Kerala and Tamil Nadu. Orissa and the North-eastern areas have a smaller proportion of production.
    • Arabica has high market value than Robusta coffee due to its mild aromatic flavor.
    • The country exports over 70% of its production. According to The Food and Agriculture Organization (FAO), India is the eighth largest exporter of coffee by volume.
    • Indian coffee exports display a seasonality, with exports peaking from March to June.

    Coffee Board of India

     

    • The Coffee Board of India is an organization managed by the Ministry of Commerce and Industry and was established in 1942.
    • It is headquartered in Bangalore.
    • The activities of the Board are broadly aimed at:
    1. Enhancement of production, productivity & quality;
    2. Export promotion for achieving higher value returns for Indian Coffee and
    3. Supporting development of Domestic market.
    • Until 1995 the Coffee Board marketed the coffee of a pooled supply.
    • Later, coffee marketing became a private-sector activity due to the economic liberalisation in India.
    • The Board comprises 33 members including the Chairman, who is the Chief Executive and appointed by the Government of India.

     

    PYQ:

    2010: Though coffee and tea both are cultivated on hill slopes, there is some difference between them regarding their cultivation. In this context, consider the following statements:

    1. Coffee plant requires a hot and humid climate of tropical areas whereas tea can be cultivated in both tropical and subtropical areas.
    2. Coffee is propagated by seeds but tea is propagated by stem cuttings only.

    Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2

     

    Practice MCQ:

    With reference to the Coffee Cultivation in India, consider the following statements:

    1. Kerala is the largest producer accounting for about 70% of the total coffee production in India.
    2. Robusta coffee has high market value than Arabica due to its mild aromatic flavor.
    3. Indian coffee exports display a perennial nature.

    How many of the given statements is/are correct?

    1. One
    2. Two
    3. Three
    4. None

  • How to bring about White Revolution 2.0

    Why in the news?

    The government’s latest Household Consumption Expenditure Survey (HCES) for 2022-23 shows milk emerging as India’s top food spend item, both in rural and urban areas

    Key facts as per survey-

    • The monthly value of milk and dairy products consumed by an average person in rural India, at Rs 314, was ahead of vegetables (Rs 203), cereals (Rs 185), egg, fish & meat (Rs 185), fruits (Rs 140), edible oil (Rs 136), spices (Rs 113) and pulses (Rs 76).
    • The HCES data reveals the same for urban India: Milk (Rs 466), fruits (Rs 246), vegetables (Rs 245), cereals (Rs 235), egg, fish & meat (Rs 231), edible oil (Rs 153), spices (Rs 138) and pulses (Rs 90).

    The challenges as per the latest Household Consumption Expenditure Survey (HCES)-

    • Rising Milk Prices: Over the last five years, the all-India modal price of milk has surged from Rs 42 to Rs 60 per liter, with a notable increase from Rs 52 to Rs 60 in the past year alone. This upward trend in milk prices poses a challenge for consumers in terms of affordability.
    • Inflationary Pressure: The increase in milk prices is attributed to inflationary pressures, impacting consumer demand. Higher prices may lead to reduced consumption or shifts to alternative products, affecting the dairy industry’s revenue and profitability.
    • Increased Input Costs: The cost of fodder, feed, and raw materials/ingredients has risen significantly. Dairies are compelled to raise procurement prices paid to farmers to offset these increased input costs. Consequently, consumers bear the brunt of these cost hikes through higher retail prices for milk and dairy products.
    • Pass-through to Consumers: To mitigate the impact of rising input costs, dairies pass on the increased procurement prices to consumers, leading to further price hikes in milk products. This pass-through mechanism exacerbates the financial burden on consumers already grappling with inflated prices.
    • Impact on Farmers: While increased procurement prices may benefit farmers initially, they may face challenges in sustaining dairy farming operations if input costs continue to escalate. Balancing the interests of farmers, consumers, and the dairy industry becomes crucial amidst these challenges..

    How can that be achieved?

    • Use of Sex-Sorted Semen (SS) technology: The use of sex-sorted semen increases the probability of female calves being born to over 90%, compared to the 50:50 ratio with conventional semen. This technology ensures a higher proportion of future milk-producing cows, enhancing the productivity of dairy herds.
    • Increased Adoption: Dairy cooperatives like Amul are actively promoting the use of sex-sorted semen among farmers. In 2022-23, Amul performed 2.86 lakh artificial inseminations (AIs) using sex-sorted semen out of a total of 13.91 lakh AIs, constituting 20.5% of the total. The cooperative aims to raise this ratio to 30% by 2024-25.
    • Enhanced Conception Rate: Roughly one-third of artificial inseminations using sex-sorted semen lead to conception. This high conception rate, coupled with the assurance of female calves, contributes to a more efficient breeding strategy, resulting in a larger population of milk-producing cows.
    • Long-term Impact: By increasing the number of female calves born through sex-sorted semen technology, dairy farmers can anticipate a higher yield of milk-producing cows in subsequent generations. This proactive approach ensures the sustainability and growth of the dairy industry by maximizing milk production efficiency.
    • Cooperative Initiatives: Dairy cooperatives play a pivotal role in facilitating the adoption of advanced breeding technologies among farmers. Through initiatives like Amul’s targeted use of sex-sorted semen, cooperatives contribute to improving the genetic potential of dairy herds and enhancing overall milk yield per animal.

    Taking to farmer/ significance of Breeding Centre-

    • Establishment of Bovine Breeding Centre: Amul inaugurated a Bovine Breeding Centre in Mogar, Gujarat, in March 2020, to breed a nucleus herd of superior bulls and cows for artificial insemination (AI) and embryo transfer (ET) technologies.
    • Objective of the Centre: The primary objective of the centre is to produce high-quality semen and in vitro-fertilised embryos, stored at ultra-low temperatures, for use in AI or transferring into farmers’ animals.
    • Breeds and Milk Yield: The centre has produced various breeds, including exotic (such as Holstein-Friesian and Jersey), HF-Gir and HF-Sahiwal crossbred, and indigenous Gir, Sahiwal, and Murrah buffalo breeds, with varying milk yield capacities ranging from 3,000 to 12,000 liters per year.
    • Utilization of Male and Female Genetics: Through AI and sex-sorted semen, the centre exploits male genetics, while IVF-ET technology focuses on harnessing the female genetics of donor cows.
    • Adoption by Farmers: Amul has extended IVF-ET technology to farmers, with successful pregnancies and calvings recorded. Member unions of the Gujarat Co-operative Milk Marketing Federation have also embraced these advancements, with farmers like Bhavnaben Chaudhary experiencing the benefits of higher-quality breeds through IVF-ET, leading to better milk yields and economic returns.
    • Preference for Specific Breeds: Farmers like Bhavnaben Chaudhary choose breeds like Kankrej for their higher fat and solids-not-fat content, despite lower yields, to ensure better prices and lower feeding and maintenance costs.

    Animal nutrition/ lowering the cost of producing milk at the farm-gate

    • Feeding Cost Reduction: Intervention is necessary to reduce the feeding costs of animals by cultivating high-yielding, protein-rich green fodder grasses. This reduces reliance on expensive compound cattle feed and oil-meal concentrates.The focus of White Revolution 2.0 would clearly have to be on lowering the cost of producing milk at the farm-gate
    • Introduction of Total Mixed Ration (TMR) Plant: Amul is establishing a 30-tonnes-per-day TMR plant at Sarsa in Anand. TMR will comprise dry and green fodder, concentrates, vitamins, and mineral mixtures, providing animals with a ready-to-eat mashed form of nutrition.
    • Benefits of TMR: TMR will save farmers the cost of purchasing and storing fodder separately, as well as the effort of administering it alongside cattle feed. It offers a convenient and cost-effective solution for animal nutrition.
    • Sourcing Fodder: The plan involves sourcing fodder from farmer producer organizations (FPOs), whose members will cultivate maize, jowar, hybrid napier, or oat grass and prepare silage for use in the TMR plant.
    • Focus on High-Yielding Grasses: Farmers will focus on cultivating high-yielding grass varieties rich in protein content, which are essential for maintaining the health and productivity of dairy animals.

    Conclusion-

    To ensure a sustainable White Revolution 2.0, measures such as the adoption of advanced breeding technologies, the establishment of breeding centres, and focus on animal nutrition are crucial for enhancing milk production efficiency and economic viability.

    Mains question for practice-

    Q- Discuss the role of advanced breeding technologies, establishment of breeding centers, and strategies for reducing feeding costs in ensuring sustainable milk production to achieve White Revolution 2.0.(250 words)

  • Centre brings wheat and rice under price stabilization fund

    Why in the news?

    The government has approved the inclusion of wheat and rice under its price stabilization fund to provide subsidies for the quantity allocated under Bharat atta and rice sale.

    Context: After it started selling Bharat atta and rice as part of its retail intervention in a bid to tame inflation as prices are soaring ahead of general elections

    What is the Price Stabilisation Fund (PSF)?

     

    A Price Stabilization Fund is established to mitigate excessive fluctuations in specific commodity prices. The fund’s resources are typically deployed to moderate high or low prices through various initiatives, such as procuring particular goods and distributing them as needed, ensuring prices stay within a desired range.

    Background-

    • During the fiscal year 2014-15, the Price Stabilization Fund (PSF) was instituted within the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) to manage the fluctuating costs of crucial agricultural commodities like onions, potatoes, and pulses.
    • These commodities will be procured directly from farmers or their organizations at farm gates or designated marketplaces, and subsequently offered to consumers at a more affordable rate. Any incurred losses in the coordination between the central government and the states during these operations must be divided.

    The significance of the Price Stabilization Fund (PSF) in the context of recent expansion to include of wheat and rice-

    • Addressing Inflationary trends : The inclusion of wheat and rice under the PSF marks a significant expansion beyond the previously covered commodities like onions, potatoes, and pulses. This expansion reflects the government’s commitment to addressing inflationary trends across a broader spectrum of essential food items.
    • Buffer Stock Management: The PSF is utilized to build up buffer stocks of key food commodities such as wheat and rice. These stocks are strategically released into the market during periods of price surges to stabilize prices and ensure affordability for consumers.
    • Subsidy Allocation: The government provides subsidies to agencies like the Food Corporation of India (FCI) for supplying wheat and rice to central procurement agencies. This subsidy support helps in maintaining the affordability of these commodities, particularly under the Bharat brand, which is sold at subsidized prices.
    • Inflation Mitigation: The inclusion of wheat and rice in the PSF is aimed at mitigating rising food inflation, which has been a concern ahead of general elections. By intervening in the market through strategic buffer stock management and subsidized sales, the government seeks to curb inflationary pressures and ensure food affordability for consumers.
    • Policy Response to Market Dynamics: The decision to expand the PSF reflects a proactive policy response to address market dynamics, particularly concerning rising rice prices. By taking measures to stabilize prices and increase availability through the PSF, the government aims to alleviate the burden on consumers and mitigate potential electoral repercussions associated with food inflation.

    The Price Stabilization Fund (PSF) addresses inflationary pressures and aids in maintaining food affordability through several mechanisms:

    • Buffer Stock Management: The PSF accumulates buffer stocks of essential food commodities during periods of surplus production or lower prices. These stocks are strategically released into the market during periods of scarcity or price surges. By increasing the supply of commodities during shortages, the PSF helps stabilize prices and prevents excessive inflation.
    • Subsidy Provision: The PSF provides subsidies to support the procurement and distribution of essential commodities. These subsidies enable the government to sell commodities at lower prices, making them more affordable for consumers. Subsidies can also incentivize increased production, leading to a greater supply of commodities and further price stability.
    • Market Intervention: The PSF allows for direct intervention in the market to address sudden price fluctuations. By purchasing commodities during periods of low prices and selling them during periods of high prices, the PSF helps moderate price volatility and ensures that prices remain within a reasonable range.
    • Consumer Protection: By stabilizing prices and ensuring the availability of essential food items, the PSF protects consumers from sudden spikes in food prices, which can disproportionately affect vulnerable populations. Affordable food prices contribute to improved food security and overall economic stability.
    • Incentivizing Domestic Production: The PSF incentivizes domestic production by providing a guaranteed market for farmers’ produce at stable prices. This encourages farmers to increase their production levels, contributing to overall food security and helping to mitigate inflationary pressures.

    Conclusion: The government is expanding the Price Stabilization Fund to include wheat and rice amid soaring food prices ahead of elections. This aims to manage inflation by subsidizing essential commodities and maintaining buffer stocks.

  • NABARD to launch ₹1000-crore Blended Fund for Agri-Startups

    What is the news –

    • The National Bank for Agriculture and Rural Development (NABARD) is set to launch a ₹1,000-crore fund to bolster technology-driven agri-startups and rural enterprises.
    • NABARD has already established a ₹750-crore fund, which will be followed by another ₹1,000 crore, to support startups in this regard.

    What are Agri-Startups?

    • Agri-startups are entrepreneurial ventures focused on innovating and revolutionizing various aspects of agriculture and allied sectors.
    • These startups leverage technology, data, and modern farming practices to address challenges in the agricultural value chain and promote sustainable farming practices.
    • They offer a wide range of products and services aimed at improving productivity, efficiency, and profitability for farmers, as well as enhancing food quality and safety for consumers.

    Key areas of innovation in agri-startups include:

    1. Precision Agriculture: Utilizing data-driven technologies such as IoT, drones, and satellite imagery for precision farming, soil health monitoring, crop monitoring, and yield optimization.
    2. Agritech Solutions: Developing innovative technologies and tools for pest and disease management, water management, greenhouse farming, and hydroponics.
    3. Farm Management Software: Providing digital platforms and mobile applications for farm management, crop planning, inventory management, and market intelligence.
    4. Agri-Marketing Platforms: Connecting farmers directly with buyers, retailers, and consumers through online marketplaces, e-commerce platforms, and farm-to-fork initiatives.
    5. Supply Chain Management: Streamlining logistics, transportation, and warehousing operations to reduce post-harvest losses, improve market access, and ensure traceability and transparency in the supply chain.
    6. Food Processing: Developing value-added products, food processing technologies, and packaging solutions to enhance the shelf life, nutritional value, and marketability of agricultural produce.

     About NABARD

     

    • NABARD was established on July 12, 1982, by an Act of Parliament to promote sustainable rural development and agricultural growth in India.
    • It operates as a statutory body under the Reserve Bank of India (RBI) Act, 1934, with its headquarters located in Mumbai, Maharashtra.
    • It was established on the recommendation of the Sivaraman Committee and has its headquarters in Mumbai.
    • Its primary mission is to facilitate credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural crafts.
    • It is governed by a Board of Directors appointed by the GoI, with (1) representatives from the RBI, (2) central and state governments, and (3) experts in various fields related to rural development and finance.

     

    Functions of NABARD:

     

    1. Refinance Support: NABARD provides refinance facilities to banks and financial institutions for agricultural and rural development activities, including crop loans and rural infrastructure projects.
    2. Direct Lending: It extends direct loans to institutions for specific rural development projects, such as agricultural production, rural infrastructure development, and agri-processing units.
    3. Research and Training: NABARD promotes research and development in agriculture, supports capacity building and training programs for rural stakeholders, and facilitates technology transfer initiatives.
    4. 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.
    5. Credit Planning: NABARD collaborates with central and state governments, RBI, and other stakeholders to formulate credit policies and plans for agriculture and rural sectors.
    6. 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.
    7. 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.

     

    About the Blended Fund for Agri-Startups

    • In the budget for FY23, plans for a blended capital fund were announced for ‘Sunrise Sectors’ to finance startups for agriculture and rural enterprises.
    • The fund aims to support startups facing challenges in scaling up their operations due to limited access to equity and debt instruments.
    • It also seeks to foster new linkages in the rural ecosystem, both forward and backwards.

    Other Schemes for Agri-Startups in India

     

    1. Agriculture Accelerator Fund (2023): It was announced by Finance Minister in the union budget for 2023-24, as a significant initiative designed to support agritech startups and young entrepreneurs hailing from rural areas.
    2. Innovation and Agri-Entrepreneurship Development Program (2018-19): To increase farmers’ income, GOI started this Program under the umbrella of Rashtriya Krishi Vikas Yojana (2007). Startups receive financial assistance at different stages, with Rs. 5.00 lakh at the idea/pre-seed stage and Rs. 25 lakh at the seed stage.

     

    PYQ:

    Q.Priority Sector Lending by banks in India constitutes the lending to: (2012)

    1. Agriculture
    2. Micro and small enterprises
    3. Weaker sections
    4. All of the above

  • In news: Tobacco Board  

    Why in the news?

    • The Tobacco Board has authorised a crop size of 100 million kg for Karnataka during the year 2024-25.

    Tobacco in Indian Economy

     

    • It is a drought tolerant, hardy and short duration crop which can be grown on soils where other crops cannot be cultivated profitably.
    • In India, Tobacco crop is grown in an area of 0.45 M ha (0.27% of the net cultivated area) producing ~ 750 M kg of tobacco leaf.
    • India is the 2nd largest producer and exporter after China and Brazil respectively.
    • The production of flue-cured Virginia (FCV) tobacco is about 300 million kg from an area of 0.20 M ha while 450 M kg non-FCV tobacco is produced from an area of 0.25 M ha.
    • In the global scenario, Indian tobacco accounts for 10% of the area and 9% of the total production.

     About Tobacco Board 

    • The Tobacco Board was constituted as a Statutory Body on 1st January, 1976 under Section (4) of the Tobacco Board Act, 1975.
    • It operates under the Ministry of Commerce and Industry.
    • It is headquartered in Guntur, Andhra Pradesh.

    The primary objective of the Tobacco Board is-

    • To promote the orderly development of the tobacco industry in India, particularly in the states of Andhra Pradesh, Karnataka, and Tamil Nadu, which are the major tobacco-growing regions in the country.

    Key Functions and Responsibilities  

    1. Regulation and Control: The Tobacco Board regulates the production, curing, grading, and marketing of Virginia tobacco, which includes Flue-Cured Virginia (FCV) and Burley tobacco varieties.
    2. Licensing and Registration: It monitors and issues licenses and registrations to tobacco growers, manufacturers, exporters, and dealers involved in various stages of the tobacco supply chain.
    3. Research and Development: It collaborates with agricultural research institutes, universities, and industry stakeholders to introduce new technologies, best practices, and crop varieties to enhance the productivity and profitability of tobacco farming.
    4. Market Promotion: It promotes Indian tobacco products in domestic and international markets through trade fairs, exhibitions, buyer-seller meets, and promotional campaigns.
    5. Price Stabilization: It intervenes in the market to stabilize prices, mitigate price fluctuations, and protect the interests of farmers against adverse market conditions.
    6. Quality Control and Grading: It operates grading centers and quality testing laboratories to assess the quality characteristics of tobacco and facilitate fair trade practices in the industry.

    PYQ:

    Q.With reference to the “Tea Board” in India, consider the following statements:

    1. The Tea Board is a statutory body.
    2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
    3. The Tea Board’s Head Office is situated in Bengaluru.
    4. The Board has overseas offices at Dubai and Moscow.

    Which of the statements given above are correct? (2022)

    1. 1 and 3
    2. 2 and 4
    3. 3 and 4
    4. 1 and 4

     

    Practice MCQ:

    Consider the following statements regarding the cultivation of Tobacco in India:

    1. Tobacco is a drought tolerant, hardy and short duration crop.
    2. India is the 2nd largest producer and exporter after China and Brazil respectively
    3. In the global scenario, Indian tobacco accounts for 10% of the area and 9% of the total production.

    How many of the given statements is/are correct?

    1. One
    2. Two
    3. Three
    4. None

  • Guaranteed MSP is an ethical imperative

    Why in the news? 

    As the upcoming general elections approach, agricultural issues have once again become the focus of attention.

    Context-

      • Farmers from the regions known for the Green Revolution have journeyed to the outskirts of the capital not only to express their concerns but also to influence the topics being discussed in the election campaigns.
    • What is the guarantee on MSP?
      • There are legal provisions for farmers to get the MSP for all 23 crops when they sell them—a guarantee by the government to ensure that prices do not fall below the minimum. 

    Key issues related to MSP in India (Produce and perish trap in India)

    • Inadequate implementation of MSP- Despite annual announcements, the implementation of Minimum Support Price (MSP) for 23 crops across both kharif and rabi seasons still needs to be improved.
      • Only a small fraction, around 6% of farmers (as per The Shanta Kumar Committee, in its 2015 report), particularly those growing paddy and wheat in states like Punjab, actually benefit from MSP.
    • Vicious Cycle of Debt and Suicide– Farmers trapped in a cycle of produce and perish face crippling debt and tragically, suicides. The inability to sell crops at MSP exacerbates financial struggles.
    • Dependency on Intermediaries The MSP procurement system frequently relies on intermediaries like middlemen, commission agents, and officials from Agricultural Produce Market Committees (APMCs). 
      • This setup can pose difficulties for smaller farmers, limiting their access to these channels and resulting in inefficiencies and diminished benefits for them.
    • Inconsistent Implementation Across States- While some states like Maharashtra and Karnataka have made efforts towards ensuring MSP through legislative measures, there are challenges due to a lack of political will and comprehensive strategies.
    • Financial Burden on Government- The government bears a substantial financial burden in procuring and maintaining buffer stocks of MSP-supported crops.
      • This allocation of resources detracts from potential investments in other agricultural or rural development initiatives.
    • Lack of political will- Unable to prevent purchasing of food crops below the MSP.  For example, A few years ago, Maharashtra attempted to amend its Agricultural Produce Market Committee (APMC) Act to prevent the purchase of agricultural produce below MSP, but the effort failed due to a lack of political will and a comprehensive strategy

    What are the measures suggested?

    • Amendment to State APMC Acts or Essential Commodities Act- Minor amendments to these laws could introduce provisions ensuring that transactions of farmers’ produce do not occur below the MSP.
    • Development of Backward and Forward Linkages- Alongside legal recourse to MSP, it is proposed to develop essential backwards and forward linkages. This includes crop planning, market intelligence, and the establishment of post-harvest infrastructure for the storage, transportation, and processing of farm commodities.
    • Enhancing MSP- There’s a suggestion to enhance MSP to provide a 50% profit margin over total cost, which is seen as feasible considering the current margins.
    • Effective Procurement and Distribution- Emphasizing the need for effective procurement and distribution mechanisms as envisioned under the National Food Security Act, 2013, to ensure MSP and address hunger and malnutrition.
    • Scheme ensure MSP- Recognizing the potential of schemes like PM-AASHA, which comprises price support, price deficiency payment, and incentives to private traders to ensure MSP, although it’s noted that such schemes have been sidelined in policy circles.
    • Reducing Intermediaries’ Share– Establishing a legally binding MSP may reduce the share of intermediaries, leading to resistance from them.
      • However, this reduction could lead to farmers receiving a higher percentage of the price paid by consumers.
    • Addressing Free Market Dogma- Critiquing the adherence to free market ideology and advocating for government intervention, particularly in ensuring a legally binding MSP, to address the ongoing crisis in farmer incomes.

    Conclusion: Inadequate MSP implementation leads to a vicious cycle of debt and dependence on intermediaries. Solutions include legal guarantees, better procurement, reducing intermediary influence, and challenging free market ideologies to ensure fair compensation for farmers.

  • Foot and Mouth Diseases in Cattles

    fmd

    Why in the news

    • The foot-and-mouth disease (FMD) has affected around many milch cattle in Uttar Pradesh.

    What is Foot-and-Mouth Disease (FMD)?

    • FMD is a highly contagious viral disease of livestock that has a significant economic impact.
    • The disease affects all cattle, swine, sheep, goats, and other cloven-hoofed ruminants.
    • Intensively reared animals are more susceptible to the disease than traditional breeds.
    • It does not affect horses, dogs, or cats.

    How does it spread?

    • It is a Transboundary Animal Disease (TAD) that deeply affects the production of livestock and disrupts regional and international trade in animals and animal products.
    • It is caused by is an ‘aphthovirus’ of the family Picornaviridae.
    • There are 7 strains (A, O, C, SAT1, SAT2, SAT3, and Asia1) which are endemic in different countries worldwide.
    • Immunity to one type does not protect an animal against other types or subtypes.

    Implications of FMD

    • FMD is characterized by fever and blister-like sores on the tongue and lips, in the mouth, on the teats, and between the hooves.
    • The disease is rarely fatal in adult animals, but there is often high mortality in young animals.
    • The disease causes severe production losses, and while the majority of affected animals recover, the disease often leaves them weakened and debilitated.

    Policy moves to prevent FMD

    • FMD Mukt Bharat Abhiyan (2016-17): Launched under Rashtriya Krishi Vikas Yojana (RKVY) during, it is a program to cover all the states which were not covered under the six-monthly vaccination scheme.
    • National Animal Disease Control Programme (2019): It aims to control of Foot & Mouth Disease and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population for FMD and 100% bovine female calves of 4-8 months of age for brucellosis.

    PYQ:

    Q. Livestock rearing has a big potential for providing non- farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India. (2015)

    Practice MCQ:

    With reference to the National Animal Disease Control Programme, consider the following statements:

    1. It aims to control of Foot & Mouth Disease (FMD) and Brucellosis by vaccinating 100% cattle, buffalo, sheep, goat and pig population.
    2. For brucellosis it would vaccinate 100% bovine calves of all age.

    Which of the given statements is/are correct?

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2