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Subject: Agriculture

  • Millets the future of Sustainable Agriculture

    Millets

    Context

    • International Year of Millets in 2023 was approved by the Food and Agriculture Organisation (FAO) in 2018 and the United Nations General Assembly has declared the year 2023 as the International Year of Millets. The Odisha Government had launched Odisha Millet Mission (OMM), which aims to bring millets back to its fields and food plates by encouraging farmers to grow the crops that traditionally formed a substantial part of the diet and crop system in tribal areas.

    Millets

    Importance of millets

    • Nutrition rich: Millet is a good source of protein, fibre, key vitamins, and minerals. The potential health benefits of millet include protecting cardiovascular health, preventing the onset of diabetes, helping people achieve and maintain a healthy weight, and managing inflammation in the gut.Millet is fibrous in content, has magnesium, Niacin (Vitamin B3), is gluten-free and has a high protein content.
    • Requires less water: Millet’s comprise a significant staple in the semiarid tropic and guarantee food and nutritional security for needy individuals, who can’t develop other food crops because of poor rainfall and soil fertility. They are profoundly nutritious and are utilized by people in the rural area.
    • Requires Moderate fertile soils: They can grow in low to medium fertile soils and in areas of low rainfall. Jowar, Bajra, and Ragi are the significant Millet’s developed in India.
    • Profitable crop: Millets are the good choice for farmers to achieve primary goals of Farming e.g., profit, versatility, and manageability.
    • Drought resistant and sustainable: Millet’s are the ‘marvel grains’ of the future as they are drought resistant which need few external inputs. Due to its high resistance against harsh conditions, millets are sustainable to the environment, to the farmer growing it, and provide cheap and high nutrient options for all.
    • Long shelf life: Nearly 40 percent of the food produced in India is wasted every year. Millets do not get destroyed easily, and some of the millets are good for consumption even after 10-12 years of growing, thus providing food security, and playing an important role in keeping a check on food wastage.

    Millets

    What is Odisha Millet mission (OMM) and its impact?

    • Promotion of millets: OMM promotes production and consumption of seven millets. But so far, focus has been on ragi, which has accounted for 86 per cent of the total area under millets, according to data on the OMM website. In contrast, little millet, foxtail millet, sorghum, pearl millet, kodo millet and barnyard millet cover less than 13 per cent of the area.
    • Non ragi millets: Mission aimed at looking for high-yielding seeds for non-ragi millets. Farmers are urged to plant some non-ragi millets
    • Limited procurement: In 2020-21, the state government procured slightly more than 20 million kg of ragi. However, this accounts for only 27 per cent of the total ragi produced, as OMM procures only 500 kg of ragi per ha and leaves the rest for farmers to consume.
    • Millets in diet for complete nutrition: This practice has prompted farmers to consume more millets in all seasons, shows a mid-term evaluation by NCDS in 2019-20. But given that average yield is 1,500 kg per ha, much of the produce does not get procured and farmers are forced to sell it at distressed rate. OMM officials also admit that despite ragi being distributed in PDS and as a mix through anganwadi centres in two districts, its consumption has not picked up in a significant manner.
    • Diverse products of Millets: OMM also sells millet products, such as cookies, savoury snacks, vermicelli and processed millets, under a brand called “Millet Shakti” through food trucks, cafés, kiosks and other outlets.
    • Food processing chain using SHGs: Women self-help groups (SHGs) have been kept at the centre of the programme. They do not just pay a major role in manufacturing biological inputs to improve millet yields and undertake processing of the produce, but also operate the millet-based cafés and outlets.The full potential of SHGs, though, has not yet been realised. So far, only three women’s SHGs manufacture and process Millet Shakti products, which limits the volume available, income generated, and consumption.
    • Market linkage by FPOs: OMM also leverages farmer-producer organisations (FPOs) to provide better marketing linkages. Until now, OMM has tapped into existing FPOs to sell processed millets in the open market or aggregate produce for Tribal Development Co-operative Corporation of Odisha Limited; if a block does not have an FPO, an SHG or community group is registered as one.
    • Current status of FPO’S: Currently, there are 76 FPOs under OMM. But some of them are engaged only in minor processing and aggregation, without plans of scaling up market linkages. Encouraging FPOs with better incentives and benefit-sharing will help them compete in the market

    Millets

    What are other government efforts to promote millet crops?

    • Smart food campaign: Smart Food with the tagline ‘good for you, good for the planet and good for the smallholder farmer’ is an initiative that will initially focus on popularising millets, and sorghum and has been selected by LAUNCH Food as one of the winning innovations for 2017.
    • Popularising the millets: Smart Food will be taken forward as a partnership and many organisations have already teamed up to popularise millets. In India, this includes Indian Institute of Millet Research (IIMR), National Institute of Nutrition (NIN), MS Swaminathan Research Foundation (MSSRF) and Self-Employed Women’s Association (SEWA).

    Conclusion

    • One way to double farm incomes and encourage farm diversification is to make millet production attractive by introducing millet cultivation in areas where farmers’ distress is visible.Dedicated programmes with proper training and capacity-building initiatives that urge farmers to move away from loss-making crops toward diversification via millets can be a timely method to pull farmers away from the region’s distress.

    Mains Question

    Q.why millets cultivation is suitable for geographic conditions of India? Analyse the various efforts by government to promote the millets.

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  • What is the PM PRANAM Scheme?

    In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans to introduce a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.

    What is the PM PRANAM scheme?

    • The proposed scheme intends to reduce the subsidy burden on chemical fertilisers.
    • This burden if uneased, is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.
    • The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers.

    Subsidies under the PRANAM

    • Further, 50% subsidy savings will be passed on as a grant to the state that saves the money and that 70% of the grant provided under the scheme can be used for asset creation related to technological adoption of alternate fertilisers.
    • It would create alternate fertiliser production units at village, block and district levels.
    • The remaining 30% grant money can be used for incentivising farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation.
    • The government will compare a state’s increase or reduction in urea in a year, to its average consumption of urea during the last three years.

    How much fertiliser does India require?

    • The kharif season (June-October) is critical for India’s food security, accounting for nearly half the year’s production of foodgrains, one-third of pulses and approximately two-thirds of oilseeds.
    • A sizable amount of fertiliser is required for this season.
    • The Department of Agriculture and Farmers Welfare assesses the requirement of fertilisers each year before the start of the cropping season, and informs the Ministry of Chemical and fertilisers to ensure the supply.
    • The amount of fertiliser required varies each month according to demand, which is based on the time of crop sowing, which also varies from region to region.
    • For example, the demand for urea peaks during June-August period, but is relatively low in March and April, and the government uses these two months to prepare for an adequate amount of fertiliser for the kharif season.

    Why is the scheme being introduced?

    • Due to increased demand for fertiliser in the country over the past 5 years, the overall expenditure by the government on subsidy has also increased.
    • The final figure of fertiliser subsidy touched Rs 1.62 lakh crore in 2021-22.
    • The total requirement of four fertilisers — Urea, DAP (Di-ammonium Phosphate), MOP (Muriate of potash), NPKS (Nitrogen, Phosphorus and Potassium) — increased by 21% between 2017-2018 and 2021-2022, from 528.86 lakh metric tonnes (LMT) to 640.27 LMT.
    • PM PRANAM, which seeks to reduce the use of chemical fertiliser, will likely reduce the burden on the exchequer.
    • The proposed scheme is also in line with the government’s focus on promoting the balanced use of fertilisers or alternative fertilisers in the last few years.

    Try this PYQ:

    Q.What are the advantages of fertigation in agriculture? (CSP 2020)

    1.Controlling the alkalinity of irrigation water is possible.
    2.Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
    3.Increased availability of nutrients to plants is possible.
    4.Reduction in the leaching of chemical nutrients is possible.

    Select the correct answer using the code given below:
    (a) 1, 2 and 3 only

    (b) 1,2 and 4 only

    (c) 1,3 and 4 only

    (d) 2, 3 and 4 only

     

    [wpdiscuz-feedback id=”5sbme0lwks” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Apple Farming in India

    apple farmersContext

    • The increasing cost of production and the increase in GST on apple cartons has triggered protests in Himachal Pradesh’s apple farmers.

    What is the issue?

    • The cost of production of agricultural items increased substantially, denying remunerative prices to the poor and marginal apple farmers.

    Reason for crisis in apple farming

    • Increase in cost of production: The input cost of fertilizers, insecticides, and fungicides has risen in the last decade by 300%, as per some estimates. The cost of apple cartons and trays and packaging has also seen a dramatic rise. In the last decade, the cost of a carton, for instance, has risen from about ₹30 to ₹ The cost borne to market the Produce has also risen.
    • High taxation: The increase in the Goods and Services Tax on cartons from 12% to 18%. This was done to ensure that farmers are forced to sell their produce to big buyers instead of selling it in the open market. Just as the three farm laws were designed on the pretext of getting rid of the middlemen, the argument here was that commission agents, who fleece the apple farmers, will be forced to exit the picture. But this leaves the apple growers at the mercy of large giants in procurement, who have precedence of even deciding the procurement price.
    • No MSP in Himachal: Unlike in Jammu and Kashmir, where there is a minimum rate for procurement, there is no such law in Himachal. The government also does not seem prepared to bring in such a law. The farmers are demanding that legally guaranteed procurement at a Minimum Support Price (C2+50%) should be ensured to improve apple farmers condition.

    apple farmersHow to address this issue?

    • Need for a regulator: What is required is an independent body that is duly supported and trusted by the farmers. Such a body should have representatives of apple growers, market players, commission agents and the government. This must be a statutory body that is also given the task of conducting research in the apple economy.
    • Directional efforts: Issues such as high input cost, lack of fair price and unavailability of infrastructure such as cold chains should be addressed.
    • Required research to support improvements in apple farming systems: Over the past few decades, the priorities in research projects and government policies on apple production were focused on the improvement of tree productivity and product quality. This was important to enhance the net incomes and living standards of apple producers in India. This research should be further enhanced by introducing European varieties in India.
    • Focussing on Alternative Market Channels: The alternative market channel works on the principles of decentralisation and direct-to-home delivery. The idea is to create smaller, less congested markets in urban areas with the participation of farmers’ groups and Farmer Producer Companies (FPCs) so that farmers have direct access to consumers.
    • Logistics transformation: To sustain the demand for agricultural commodities, investments in key logistics must be enhanced. Moreover, e-commerce and delivery companies and start-ups need to be encouraged with suitable policies and incentives. The small and medium enterprises, running with raw materials from the agriculture and allied sector or otherwise, also need special attention so that the rural economy doesn’t collapse.

    apple farmersConclusion

    • Agriculture is dying, not as in the production of food but as a desirable profession. One bad yield, whether due to errant rains, pests, etc., and most farmers have no buffer available. The last point worth considering is that food and agriculture are not the same. Expenditures on food span the value-add, including processing, preparation, service in restaurants, etc. Farmers in India merely get paid for their product and not for the food we eat.

     

    Mains question

    Q. Do you think there is urgent need to extend MSP to horticulture sector also? Discuss what can be done to solve the apple farmer crisis in Himachal Pradesh.

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  • Agriculture Supply Chain

    supply chainContext

    • Disruption of supply chains due to Ukraine war has implications for India’s food security

    What is supply chain in simple words?

    • A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.

    Is supply chain management related to agriculture?

    • Agribusiness, supply chain management (SCM) implies managing the relationships between the businesses responsible for the efficient production and supply of products from the farm level to the consumers to meet consumers’ requirements reliably in terms of quantity, quality and price.

    supply chainWhat are two types of food chain?

    • Agriculture food supply chains for fresh agricultural products: (such as fresh vegetables, flowers, fruit). In general, these chains may comprise growers, auctions, wholesalers, importers and exporters, retailers and speciality shops and their input and service suppliers. Basically, all of these stages leave the intrinsic characteristics of the product grown or produced untouched. The main processes are the handling, conditioned storing, packing, transportation and especially trading of these goods.
    • Agriculture food supply chains for processed food products: (such as portioned meats, snacks, juices, desserts, canned food products). In these chains, agricultural products are used as raw materials for producing consumer products with higher added value. In most cases, conservation and conditioning processes extend the shelf-life of the products.

    supply chainSupply chain issues

    • Shelf-life constraints for raw materials, intermediates and finished products and changes in product quality level while progressing the supply chain (decay).
    • High volume, low variety (although the variety is increasing) production systems.
    • Importance of production planning and scheduling focusing on high capacity utilization.
    • Highly sophisticated capital-intensive machinery leading to the need to maintain capacity utilization.
    • Variable process yield in quantity and quality due to biological variations, seasonality, random factors connected with weather, pests and other biological hazards.

    What should we do to ensure nutritional security?

    • Strengthening and shortening food supply chains: reinforcing regional food systems, food processing, agricultural resilience and sustainability in a climate-changing world will require prioritising research and investments along these lines.
    • Infrastructure: Lastly, infrastructure and institutions supporting producers, agripreneurs and agricultural micro, small and medium enterprises (MSMEs) in their production value chain are central to the transition.
    • Potential for crop diversification: Data compiled in the agro-climatic zones reports of the Indian Council of Agricultural Research and the erstwhile Planning Commission of India reveal enormous potential for crop diversification and precision for enhanced crop productivity based on soil type, climate (temperature and rainfall), and captive water resources.
    • Holistic policy approach: In the context of the intensifying economic, environmental and climate challenges and crisis, the need of the hour is a good theory of transition encompassing the spatial, social and scientific dimensions, supported by policy incentives and mechanisms for achieving a sustainable, resilient and food secure agriculture.
    • Agro-climatic approach: An agro-climatic approach to agricultural development is important for sustainability and better nutrition.

    Way forward

    • Transparency: The Indian government could ensure more transparency on food stocks and regulate the private sector.
    • Set restriction on hoarding: For that, there is a need to set restrictions on the reserves that the private sector can hold, as they often tend to hoard food stocks to later sell at a profit.
    • Speculation should be regulated: This will help prevent the opaqueness of private sector reserves, which often fuels speculation by large international financial actors.
    • Positional limits: Internationally, positional limits could be set on speculators but that would require a multilateral accord, a topic which should be on the agenda at the next G-20 meeting.

    Mains question

    Q. What role supply chain play in nutritional security? Discuss the constraints in supply chain along with way forward.

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  • What is Kurki, and why is it a big issue in Punjab?

    A farmer in Punjab has committed suicide outside the office of the Muktsar DC against kurki orders for his land based on a court case filed against him by the local moneylender for defaulting on loan payment.

    What is Kurki?

    • Kurki means attachment of a farmer’s land, already pledged to the money lending institution or individual, in case of a loan default.
    • Apart from banks, private moneylenders, commission agents also get these decrees against farmers from time to time.

    How is kurki executed?

    • Kurki orders are executed under Section 60 of Civil Procedure Code, 1908.
    • The land which is pledged by the farmer to the bank or money lender gets registered in their name. In some cases, the land is auctioned as well.
    • The process begins after the money lender moves court to get kurki orders in case the farmer is unable to pay back his loan.
    • In kurki, attachment of farmer’s land as well as his tractor can be done as per the Section 60.

    Was kurki not banned in Punjab?

    • Both Akali Dal and Congress governments of the past have claimed to have banned kurki.
    • Congress fought the 2017 Assembly polls on the slogan ‘karza kurki khatam, fasal di poori rakam’.
    • Soon after winning polls in 2017, the then government abolished Section 67-A of Punjab Cooperative Societies Act that enabled cooperatives to recover unpaid loans through auctioning of land mortgaged by farmers.
    • However, Section 63-B, 63-C of the Act were not dropped to prevent attachment of land.
    • Former Punjab CM has also claimed that kurki was abolished by his government. Activists accuses governments of issuing vague orders on the matter.

    Why has a total ban on the century-old kurki law not been achieved?

    • A plea filed in the Punjab and Haryana High Court in 2018 sought complete ban on kurki.
    • However, the Punjab government in its affidavit stated that there was no need to ban kurki as relief was being given to farmers in terms of loan waiver, compensation etc.
    • Moreover, it stated that Section 60 of Civil Procedure Code, 1908 – under which kurki takes place — was over 110 years old and needed complete revision.

    What is the ground reality?

    • Farmers point out that they are made to give post-dated cheques for loan, which are then used to get arrest orders issued in cheque bounce cases.
    • They have also accused money lenders of using pronotes signed by them to get kurki orders.
    • “Pro-notes” (promissory notes) are written documents taken from farmers, and signed by them at the time of giving the loan.
    • In April 2022, over 2,000 arrest warrants were issued against farmers for non-payment of loans to cooperative societies and Punjab agriculture development banks.

     

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  • Millet crop is the best solution for climate smart agriculture

    milletContext

    • Government push to coarse cereals as climate change affects wheat, paddy cultivation

    What are millets crops?

    • Millets are a group of highly variable small-seeded grasses, widely grown around the world as cereal crops or grains for human food and as fodder.

    Features Millet crops in India

    • Big three: The three major millet crops currently growing in India are jowar (sorghum), bajra (pearl millet) and ragi (finger millet).
    • Examples: India also grows a rich array of bio-genetically diverse and indigenous varieties of “small millets” like kodo, kutki, chenna and sanwa.
    • Area of production: Major producers include Rajasthan, Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Gujarat and Haryana.

    milletWhat are Advantages of millet cultivation?

    • Low input cost: cereals are good for the soil, have shorter cultivation cycles and require less cost-intensive cultivation.
    • Climate resilience: These unique features make millets suited for and resilient to India’s varied agro-climatic conditions.
    • Drought tolerance: cereals are not water or input-intensive, making them a sustainable strategy for addressing climate change and building resilient agri-food systems.

    milletReduction in millet production

    • Effects of Green Revolution: The Green Revolution succeeded in making India food sufficient, however, it also led to water-logging, soil erosion, groundwater depletion and the unsustainability of agriculture.
    • Deficit mind-set: Current policies are still based on the “deficit” mind-set of the 1960s.
    • Biased policies: The procurement, subsidies and water policies are biased towards rice and wheat.
    • Skewed cropping pattern: Three crops (rice, wheat and sugarcane) corner 75 to 80 per cent of irrigated water.
    • Lack of diversification: Diversification of cropping patterns towards cereals, pulses, oilseeds, horticulture is needed for more equal distribution of water, sustainable and climate-resilient agriculture.

    What can be done to promote millets as nutri-cereals?

    1) Rebranding the cereals as nutri-cereals

    • The first strategy from a consumption and trade point of view was to re-brand coarse cereals/millets as nutri-cereals.
    • As of 2018-19, millet production had been extended to over 112 districts across 14 states.

    2) Incentive through hiking MSP

    • Second, the government hiked the MSP of nutri-cereals, which came as a big price incentive for farmers.
    • From 2014-15 to 2020 MSPs for ragi has jumped by 113 per cent, by 72 per cent for bajra and by 71 per cent for jowar.
    • MSPs have been calculated so that the farmer is ensured at least a 50 per cent return on their cost of production.

    3) Providing steady markets through inclusion in PDS

    • To provide a steady market for the produce, the Modi government included millets in the public distribution system.

    4) Increasing area, production and yield

    • The Ministry of Agriculture & Farmers’ Welfare is running a Rs 600-crore scheme to increase the area, production and yield of nutri-cereals.
    • With a goal to match the cultivation of nutri-cereals with local topography and natural resources, the government is encouraging farmers to align their local cropping patterns to India’s diverse 127 agro-climatic zones.
    • Provision of seed kits and inputs to farmers, building value chains through Farmer Producer Organisations and supporting the marketability of nutri-cereals are some of the key interventions that have been put in place.

    5) Intersection of agriculture and nutrition

    • The Ministry of Women and Child Development has been working at the intersection of agriculture and nutrition by -1) setting up nutri-gardens, 2) promoting research on the interlinkages between crop diversity and dietary diversity 3) running a behaviour change campaign to generate consumer demand for nutri-cereals.

    Conclusion

    • India should aim for a food systems transformation, which can be inclusive and sustainable, ensure growing farm incomes and nutrition security. As the government sets to achieve its agenda of a malnutrition-free India and doubling of farmers’ incomes, the promotion of the production and consumption of nutri-cereals seems to be a policy shift in the right direction.

    Mains question

    Q. Promotion of millet crops serves the dual purpose of securing health and supporting farmers. Elucidate.

     

     

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  • Farmer suicide

    farmer suicideContext

    • An agricultural labourer died by suicide every 2 hours in 2021: NCRB
    • The national catastrophe of farmer suicide since the 1990s, often by drinking pesticides is attributed to their inability to repay loans mostly taken from landlords and banks.

    NCRB Stats on Farmers Suicide

    • Some 5,563 agricultural labourers died by suicide in 2021, according to the latest report of the National Crime Records Bureau (NCRB). The number of suicides increased by nine per cent from 2020 and by around 29 per cent from 2019.

    Causes of Farmers Suicide

    • Non sustainable cropping: Most of the suicides have occurred in areas of cash crops like cotton and sugarcane, which is high input, high output gambling, not based on the principle of sustained and resilient high yield.
    • Multiple causes: There is no consensus on what the main causes might be but studies show farmer suicide victims are motivated by more than one cause however the primer reasons being the inability to repay loans.
    • Combined causes: Major causes reportedly are bankruptcy/indebtedness, problems in the families, crop failure, illness and alcohol/substance abuse.

    farmer suicideFaulty measures

    • Low penetration of irrigation: Irrigation reaches less than half of India’s overall farmland, a picture that has not changed much over the past decade, and more than 60% of our farmers are susceptible to rainfall anomalies.
    • Dry land farming: Rain-fed farming yields are typically less than half those of irrigated farmland.
    • High input cost: Though India has caught up with global levels of fertilizer use, this is neither efficient nor environmentally sustainable. Both add to the cost of cultivation.
    • Slow R&D: Research on high-yielding crops has plateaued after an initial burst during the Green Revolution and farmers have to resort to patented seeds to draw more out of their scanty acres.

    farmer suicide7R’ model utility

    It looks at the prevention of farmer suicide

    • Remunerative agriculture,
    • Resilience building,
    • Rational expenditure,
    • Reassurance through connectivity,
    • Righteous conduct,
    • Religious support and
    • Responsible reporting

    farmer suicideWay Forward

    • Information technology promises to improve weather forecasting, crop identification as well as damage control, soil health monitoring, and mapping of available water resources.
    • Improvements in marketing and logistics can significantly raise the share that cultivators get of the money people pay for their food.
    • The govt. is using technology to connect farmers to a nationwide e-market, but the states need to amend their antiquated farm produce marketing laws that have squeezed farmers’ earnings.
    • An old problem of price signals failing to adjust demand and supply may also need fixing.
    • For agricultural incomes to rise, reforms, rather than cash transfers, loan waivers and the like, are the way ahead.

    Conclusion

    • Along with subsidies, increased farm profits, the focus should also be on resilience building and problem-solving skills of farming families.
    • In suicide-prone states, agricultural institutes and scientists should start distributing seeds of resilience, tolerance and contentment among farmers, suggested researchers.

    Mains question

    Q. Despite agricultural growth Indian farmers are committing suicides Discuss the causes and give dynamic way forward to address the issue.

     

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  • One Nation One Fertiliser (ONOF) Scheme

    The Ministry of Chemicals and Fertilisers will implement One Nation One Fertiliser (ONOF) by introducing a Single Brand for Fertilisers and Logo under the fertiliser subsidy scheme named “Pradhanmantri Bhartiya Janurvarak Pariyojna” (PMBJP).

    One Nation One Fertiliser (ONOF)

    • The single brand name for UREA, DAP, MOP and NPK etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK etc. respectively for all Fertiliser Companies, State Trading Entities (STEs) and Fertiliser Marketing Entities (FMEs).
    • Also a logo indicating Fertiliser subsidy scheme namely Pradhanmantri Bhartiya Janurvarak Pariyojna will be used on said fertiliser bags.
    • Under the scheme, companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
    • On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.

    What is the government’s argument for introducing this scheme?

    The government’s logic for introducing a single ‘Bharat’ brand for all subsidised fertilisers being marketed by companies is as follows:

    (1) Subsidies normalization

    • The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.
    • The MRPs of non-urea fertilisers are, on paper, decontrolled.
    • But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government.
    • Simply put, there are some 26 fertilisers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs;

    (2) Harmonizing markets

    • Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell.
    • This is done through the Fertiliser (Movement) Control Order, 1973.
    • Under this, the department of fertilisers draws an agreed monthly supply plan on all subsidised fertilisers in consultation with manufacturers and importers.
    • This supply plan is issued before the 25th of each month for the following month, with the department also regularly monitoring movement to ensure fertiliser availability as per requirement, including remote areas.

    (3) Farmers welfare

    • The government is spending vast sums of money on fertiliser subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23).
    • By deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.

    What can be the drawbacks of the scheme?

    • It may disincentivise fertiliser companies from undertaking marketing and brand promotion activities.
    • They will now be reduced to contract manufacturers and importers for the government. Any company’s strength ultimately is its brands and farmer trust built over decades.
    • Currently, in case of any bag or batch of fertilisers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.
    • Politically, the scheme might well boomerang rather than benefit the ruling party.

     

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  • Doubling farmer’s income

    Context

    • By making solar energy the ‘third crop’, promoting this innovation on a mission mode, the government can double farmers’ income.
    • The famous slogan of late Lal Bahadur Shastri, “Jai Jawan, Jai Kisan,” was extended by Atal Bihari Vajpayee to include “Jai Vigyan”. Now, Prime Minister Narendra Modi has extended it to, “Jai Anusandhan”.

    What is doubling farmer’s income scheme

    • Doubling farmers’ income is a target set by the government of India in February 2016 to be achieved by 2022.
    • To promote farmers’ welfare, reduce agrarian distress and bring parity between income of farmers and those working in non-agricultural professions.

    KUSUM Scheme

    • The scheme would provide extra income to farmers, by giving them an option to sell additional power to the grid through solar power projects set up on their barren lands.
    • It was announced in the Union Budget 2018-19.

    Component of KUSUM Scheme

    Component-A

    • Renewable power plants of capacity 500 KW to 2 MW will be setup by individual farmers/ cooperatives/panchayats /farmer producer organisations (FPO) on their barren or cultivable lands.

    Component-B

    • Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps.
    • Individual farmers will be supported to install standalone solar pumps of capacity up to 7.5 HP. Solar PV capacity in kW equal to the pump capacity in HP is allowed under the scheme.

    Component-C

    • Solarization of 10 Lakh Grid-connected Solar Powered Agriculture Pumps is included in this component, Individual farmers will be supported to solarise pumps of capacity up to 7.5 HP.

    Expected outcomes of KUSUM

    • Welfare: By providing greater financial assistance to smaller farmers, instead of a one¬size¬fits¬all approach.
    • Equity: To encourage equitable deployment, the Centre could incentivise States through target linked financial assistance and create avenues for peer learning.
    • Addressing inequity within a State – This is addressed by a share of central financial assistance under KUSUM should be appropriated for farmers with small landholdings and belonging to socially disadvantaged groups.

    Punchline

    Annadata becoming the urjadata – This one policy has the potential to double farmers incomes within a year or two.

    Challenges

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

    Constraints in the path of doubling the income

    • Outdated technology: Use of outdated and inappropriate technology is the main reason for low productivity of crops and livestock.
    • Affordability: Given the pre-dominance of small and marginal farmers in Indian agriculture, affordability becomes a significant constraint on technology adoption by farmers.
    • Low research in agriculture: Agricultural research in the country is constrained by resource inadequacy, regulations and intellectual property rights (IPR).

    The Measures Taken by Indian Government

    • Institutional Reforms: Pradhan Mantri Krishi Sinchai Yojana, Soil health card, and Prampragat Krishi Vikas Yojana- Aiming to raise output and reduce cost.
    • Technological Reforms: Various Technology mission like Technology mission on cotton, Technology Mission on Oilseeds, Pulses and Maize etc.

    Way forward

    • To secure future of agriculture and to improve livelihood of half of India’s population, adequate attention needs to be given to improve the welfare of farmers and raise agricultural income.
    • It is essential to mobilize States and UTs to own and achieve the goal of doubling farmers’; income with active focus on capacity building (technology adoption and awareness) of farmers that will be the catalyst to boost farmer’s income.

    Mains question

    Q. By making solar energy the ‘third crop’, promoting this innovation on a mission mode, the government can double farmers’ income. Critically analyse this statement.

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  • Mystery of milk price going up when WPI inflation is down

    Milk prices are rising, as producers and marketers pass on higher costs to consumers.  Amul and Mother Dairy raised milk prices by ₹2 each this week, the second such hike this year.

    Why are milk prices going up?

    • High operating cost: For dairy companies and cooperatives, the cost of operation and production of milk has increased.
    • Fodder price hike: Prices of cattle feed, which includes maize, wheat and soybean, are up 20% over the year.
    • High procurement cost: Given the rise in input costs, its member unions from where it procures milk have increased farmers’ price in the range of 8-9% year-on-year.
    • Cost sharing: In an already inflationary environment, dairies are compelled to pass on price increases to consumers as procurement prices go up.

    Has demand for milk picked up as well?

    • A better rate of vaccination, resumption of offices, schools and even opening up of channels such as hotels and restaurants have led to higher out-of-home consumption of foods and beverages in the last two to three quarters.
    • This has led to greater demand for milk and other dairy beverages.
    • Analysts cited higher skimmed milk prices in the international markets that they said make exports of the commodity out of India more attractive.
    • A combination of these factors is pushing up milk procurement prices, and leading to higher retail prices.

    But isn’t wholesale inflation cooling down nowadays?

    • Yes; India’s wholesale price-based inflation eased to 13.93% in July.
    • In fact, WPI inflation in milk eased in July to 5.45% compared  to  6.35%  in  June,  though it remained high compared to February.
    • However, companies also pass on hikes with a lag to lessen the impact on demand. Amul says the increase is less than 4% — below the food inflation rate of 8-9%.

    When will milk prices cool down?

    • Milk procurement is also dependent on the flush season that runs between September to February.
    • This is the peak lactating period for cattle due to better availability of green fodder and water.
    • As a result, the period in general sees higher milk production and availability.
    • The onset of  the  flush  season  could offer some relief to dairy companies in the second half of the current fiscal year.

    What does this mean for consumers?

    • For households, an  increase  in milk prices obviously means shelling out more money; this in a country that is among largest consumers of milk.
    • In fact,  by July,  dairy companies had raised milk selling prices by 5-8% in a six-month window.
    • Consumer demand typically sees an impact in the first few days after price hikes are initiated. However, recovery happens gradually.
    • Consequently, higher milk procurement prices could also hurt companies that make bakery products or food items that use milk or milk solids.

    Also read

    Concept of Inflation/Deflation/WPI/CPI/IIP

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