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Subject: Agriculture

  • Production of Poppy Straw

    The Central government has decided to rope in the private sector to commence production of concentrated poppy straw from India’s opium crop.

    What is the move?

    • The move aims to boost the yield of alkaloids, used for medical purposes and exported to several countries.
    • Among the few countries permitted to cultivate the opium poppy crop for export and extraction of alkaloids, India currently only extracts alkaloids from opium gum at facilities controlled by the Revenue Department.
    • This entails farmers extracting gum by manually lancing the opium pods and selling the gum to government factories.
    • The Ministry has now decided to switch to new technologies after trial cultivation reports submitted last year by two private firms showed higher extraction of alkaloids using the concentrated poppy straw (CPS).

    Opium Poppy

    • The milky fluid that seeps from cuts in the unripe poppy seed pod has, since ancient times, been scraped off and air-dried to produce what is known as opium.
    • The seedpod is first incised with a multi-bladed tool.
    • This lets the opium “gum” ooze out.
    • The semi-dried “gum” is harvested with a curved spatula and then dried in open wooden boxes.
    • The dried opium resin is placed in bags or rolled into balls for sale.

    Why such a move?

    • India’s opium crop acreage has been steadily declining over the years.
    • The CPS extraction method is expected to help cut the occasional dependence on imports of products like codeine (extracted from opium) for medical uses.

    Amendments to NDPS Act

    • Uttar Pradesh, Rajasthan and Madhya Pradesh are the three traditionally opium-growing States, where poppy crop cultivation is allowed based on licences issued annually by the Central Bureau of Narcotics.
    • While roping in private players in producing CPS and extracting alkaloids from it is likely to require amendments to the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
    • The Revenue Department has decided to appoint a consultant to help frame the bidding parameters and concession agreements for the same.

  • [pib] Sadabahar: A mango variety that bears fruits round the year

    A farmer from Kota, Rajasthan, has developed a round-the-year dwarf variety of mango called Sadabahar, which is resistant to most major diseases and common mango disorders.

    Try this PYQ:

    Q.With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:

    1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.
    2. GM mustard has the genes that allow the plant cross-pollination and hybridization.
    3. GM mustard has been developed jointly by the IARI and Punjab Agricultural University.

    Which of the statements given above is/are correct? (CSP 2018)

    (a) 1 and 3 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

    Sadabahar

    • The fruit is sweeter in taste, comparable to langra and being a dwarf variety, is suitable for kitchen gardening, high-density plantation, and can be grown in pots for some years too.
    • Besides, the flesh of the fruits, which is bourn round the year, is deep orange with a sweet taste, and the pulp has very little fiber content which differentiates it from other varieties.
    • The bountiful nutrients packed in mango are immensely good for health.
    • This variety has been verified by the National Innovation Foundation (NIF), India, an autonomous institution of the Department of Science & Technology.

  • Land record Modernisation in India

    Updated land record system could help the landowner in many ways. However, there is a lack of an updated land record system in India. There are several factors responsible for it. The article highlights these factors.

    Need for updated land record

    • For a significant section of the rural poor, land is both an asset and a source of livelihood.
    • With livelihoods affected, the importance of land ownership for access to formal loans as well as government relief programmes became even more evident.
    • But the relatively poor availability of clear and updated land titles remains a hurdle.
    • The government of India’s Digital India Land Records Modernisation Programme (DI-LRMP) scheme is the most recent effort in encouraging updating of land record.

    Reasons for lack of updated land record data

    The National Council of Applied Economic Research made a pioneering effort in this direction by launching NCAER Land Records and Services Index (N-LRSI) in 2020.

    Following are the finding of NCAER about the poor state of land records.

    • The dismal state of land records is due to the failure of the Indian administration to evolve from British-era land policies.
    • In addition, land record regulations and policies vary widely across Indian states/union territories.
    • Though DI-LRMP provides a common framework for reporting the progress of land record management by states/UTs, the heterogeneous nature of regulations/guidelines for land record management in India makes the progress non-uniform.
    • One of the major roadblocks in ensuring continuous updation of land records is the lack of skilled manpower in land record departments in states.
    • Another dimension relates to the poor synergy across land record departments.
    • There is a lack of synergy between the revenue department as the custodian of textual records, the survey and settlement department managing the spatial records and the registration department, which is responsible for registering land transactions.
    • The swiftness of the process of updating ownership as the result of the registration of a transaction is commonly known as mutation.
    • The information obtained from all the state/UT sources in this regard revealed that no state/UT has the provision for online mutation on the same day as the registration.

    Way forward

    • With poor inter-departmental synergy, aspiring for updated and accurate records will always be a distant goal and states/UTs should take necessary actions to have the appropriate systems in place.
    • The improved system of land records is likely to facilitate the efforts that some states/UTs are making to ease land transactions — like lowering stamp duties by the Maharashtra government.
    • Finally, these efforts are going to be instrumental for the health of India’s rural economy.

    Consider the question “How an updated and functional land record system could help transform the rural economy? What are the hurdles in creating the updated land record system?”

    Conclusion

    The governments need to take measures to remove the hurdles in the creation of a robust land record system so as to help the landowners access institutional channels of credit.

  • What are Military Farms?

    Military farms have been closed after 132 years of service.

    Read till the end to know what Project Freiswal is.

    What are Military Farms?

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

    Why are they shutdown?

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

    Their significance

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

    Another initiative: Project Freiswal

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

  • Need for technological solutions to use water for agriculture more sustainably

    The article examine the use of water for sugarcane and rice cultivation in India and its impact. 

    Water availability and usage in India

    • As per the Central Water Commission’s reassessment of water availability, India receives a mean annual precipitation of about 3,880 billion cubic meters (BCM) but utilises only 699 BCM (18 percent) of this; the rest is lost to evaporation and other factors.
    • The demand for water is likely to be 843 BCM in 2025 and 1,180 BCM by 2050.
    • As per the UN’s report on Sustainable Development Goal-6 (SDG-6) on “Clean water and sanitation for all by 2030”, India achieved only 56.6 per cent of the target by 2019.
    • Further, as per the Niti Aayog’s Composite Water Management Index (2019), 75 per cent households in India do not have access to drinking water on their premises.
    • India ranks 120th amongst 122 countries in the water quality index.
    • India is identified as a water-stressed country with its per capita water availability declining from 5,178 cubic metre (m3)/year in 1951 to 1,544 m3 in 2011 — this is likely to go down further to 1,140 cubic metre by 2050.

    How free or highly subsidised electricity skews water use pattern

    • Despite decades of large public and private investments in irrigation, only about half of India’s gross cropped area:198 million hectares is irrigated.
    • Groundwater contributes about 64 per cent, canals 23 per cent, tanks 2 per cent and other sources 11 per cent to irrigation.
    • This results primarily from incentive policy of free or highly subsidised power, particularly in the country’s north-west, the site of the erstwhile Green Revolution.
    • Overexploitation of groundwater has made this region amongst the three highest water risk hotspots.
    • Overall, about 1,592 blocks in 256 districts in India are either critical or overexploited.

    Need to focus on rice and sugarcane

    • Agriculture uses about 78 per cent of fresh water resources.
    • As per a NABARD-ICRIER study on Water Productivity Mapping, these crops alone consume almost 60 per cent of India’s irrigation water.
    • We need a paradigm shift to increase land productivity measured as tonnes per hectare (t/ha), and to maximise applied irrigation productivity measured as kilogrammes, or Rs, per cubic metre of water (kg/m3).
    • Figure 1 shows applied irrigation water productivity against land productivity for rice and sugarcane in important growing states.
    • Note that while Punjab scores high on land productivity of rice, it is at the bottom with respect to applied irrigation water productivity.
    • In the case of sugarcane, irrigation water productivity in Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu is only 1/3rd of that in Bihar and UP (Figure 2).
    • There is, thus, a need to realign cropping patterns based on per unit of applied irrigation water productivity.

    Use of technology

    • There are technologies to produce the same output of rice and sugarcane with almost half the irrigation water.
    • Jain Irrigation, for instance, has set up drip irrigation pilots for paddy and sugarcane.
    • The results of these pilots indicate while it takes 3,065 litres of water to produce 1 kg of paddy grain (yield level 7.75 t/ha) under traditional flood irrigation, under drip, it can be reduced to just 842 litres.
    • The benefit cost ratio of drip with fertigation in case of sugarcane in Karnataka is observed to be 2.64.
    • An extension to this is the “Family Drip System” innovated by Israel-based — Netafim.
    • The company has also launched its largest demonstration project in Asia at Ramthal, Karnataka.
    • Technologies like Direct Seeded Rice (DSR) and System of Rice Intensification (SRI) can also save 25-30 per cent of water compared to traditional flood irrigation.

    Need for right pricing policies

    • Technological solutions cannot make much headway unless pricing policies of agri-inputs are put on the right track and farmers are incentivised for saving water.
    • The Punjab government, along with the World Bank and J-PAL, has started some pilots with an innovative policy of “Paani Bachao Paise Kamao” to encourage rational use of water among farmers.

    Consider the question “Examine the impact of rice and sugarcane cultivation on the groundwater table in India. How technological solutions can help use water more sustainably for agriculture?”

    Conclusion

    Overall, it seems it is time to switch from the highly subsidised price policy of water/power (and even fertilisers) to direct income support on a per hectare basis, and investment policies that help with newer technologies and innovations.

  • PM-Kisan: Income support to farmers needs to be more inclusive

    The article highlights the challenge of exclusion error in the PM-KISAN and suggests measures to deal with the issue by drawing on the success of KALIA and Rythu Bandhu.

    Exclusion in PM-KISAN

    • Budget FY22 announced an allocation of Rs 65,000 crore to the PM-Kisan scheme.
    • Since 2019, the PM-Kisan has been the largest component of the agriculture budget each year.
    • The scheme is targeted at farmers who own cultivable land as per land records of the state.
    • Unfortunately, this leaves out vulnerable sections such as tenant farmers, women farmers, tribal families and landless labourers.
    • The exclusion is the result of the challenge of first identifying these people, since our existing systems do not formally recognise them as farmers.

    The need to identify farmers

    • Despite 73.2% of rural women engaging in agriculture, only 12.8% are reported to own land.
    •  Among tribal communities, of the 20 million tribal families, less than 2 million have received individual forest rights pattas; the rest are ‘invisible’ and left out of government safety nets.
    • Landless agricultural labourers and tenant farmers account for close to 150 million people in rural India, and they too are not part of state land records.
    • Although there are multiple welfare schemes for farmers, there is no standard government definition of a farmer.
    • The 2007 MS Swaminathan Committee called out that the term ‘farmer’ would include any person actively engaged in growing crops and other agricultural commodities, and would include not only landholders, but also cultivators, labourers, sharecroppers, tenants and tribal families, amongst others.

    Learning from KALIA and Rythu Bandhu

    • Odisha has been a frontrunner in implementing an inclusive farmer welfare scheme, the KALIA.
    • The KALIA provides an unconditional income support of Rs 12,500 to landless agricultural households and an annual Rs 10,000 to small and marginal land-owning farmers as well as tenant farmers.
    • Odisha leveraged existing databases such as the Paddy Procurement Automation System, the Pradhan Mantri Fasal Bima Yojana and the National Food Security Act, and deployed close to 50,000 government staff at state, district and block levels to conduct extensive on-ground verification to identify eligible beneficiaries.
    • Telangana took a different approach prior to rolling out the Rythu Bandhu Scheme, a direct benefit transfer scheme for land-owning farmers.
    • The Rythu Bandhu Scheme targeted only land-owning farmers.
    • But the state took on the onus of updating land records before implementing the scheme.
    • The revenue and agriculture departments partnered to undertake a state-wide Land Records Updation Programme (LRUP).
    • This shows that updating and digitising land records databasse is possible with focused efforts.

    Way forward

    • Instead of every scheme having its own farmer beneficiary database, the ideal solution would be to leverage the existing land records databases in every state.
    • The design should ensure women’s names are not excluded.
    • Implementation of the Forest Rights Act 2006 needs to be accelerated so that tribal families receive forest rights pattas and become part of the land records database.
    • The next challenge is to build in incentives in the process to encourage the maintenance of the land record database, such that all future transactions such as sale, gift etc. are regularly updated to increase the reliability of the records.

    Consider the question “How lack of definition of farmer leads to inclusion and exclusion errors in the schemes for farmers. Suggest the measures to deal with the issue.”

    Conclusion

    The pandemic, more so than anything else, has highlighted the need for the government to have robust social security mechanisms to reach the most vulnerable sections of the population, and making PM-Kisan more inclusive is an important step in that direction.

    Source:

    https://www.financialexpress.com/opinion/pm-kisan-income-support-to-farmers-needs-to-be-more-inclusive/2217436/

  • [pib] Multi-Layer Farming

    ICAR is undertaking location-specific multi-layer farming involving crops of different heights.

    Multi-Layer Farming

    • Multi-layer farming means growing and cultivating compatible plants of different heights on the same field and at the same time.
    • It is generally practised in orchards and plantation crops for the utmost use of solar energy even under high planting density.
    • It is mostly cash crop-based and it includes a combination of vegetables and fruits that can be grown together.

    How it is done?

    • In Multi-layer farming, the crops are grown at different heights on the same land.
    • This farming cannot be done in open fields as shade is required. It is one type of intercropping.
    • Growing plants of different height in the same field at the same time is termed Multi-layer cropping. It is generally practised in orchards and plantation crops for maximum use of solar energy even under high planting density. It is the practice of several crops of varying heights, rooting pattern and duration to cultivate together.
    • The objective is to utilize vertical space more effectively.
    • In this, the tallest components have foliage of strong light and high evaporative demand and shorter components with foliage requiring shade and high humidity.

    Try this PYQ:

    Q.What are the advantages of fertigation in agriculture?

    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

    Benefits offered

    • Prevent water evaporation from the soil; as an effect, 70% of water is saved.
    • The income per unit area increases substantially
    • Minimize risks of crop yield loss and this system enables a steady supply of farm products the whole round the year.
    • Reduces the impacts of hazards such as high-intensity rainfall, soil erosion, and landslides.
    • Improve the soil characteristics and adds organic matter to the soil.
    • Effective utilization of leaching materials and helps in effective weed control.
    • Provide micro-climate conditions that advantage crops underneath.

    What else?

    : Agricultural Technology Management Agency (ATMA)

    • In addition to this, a Centrally Sponsored Scheme ‘Support to State Extension Programs for Extension Reforms” popularly known as ATMA Scheme is already under implementation since 2005.
    • Presently, the Scheme is being implemented in 691 districts of 28 states & 5 UTs in the country.
    • The scheme promotes a decentralized farmer-friendly extension system in the country.
    • Under the scheme, grants-in-aid are released to the State with an objective to make available the latest agricultural technologies and good agricultural practices in different thematic areas of agriculture and allied areas to farmers including training for multi-layer farming.
    • Training of farmers is one of the eligible activities of the ATMA Scheme.

  • A high growth plan for Indian agriculture

    The article deals with the issue discussed in the recently published book ‘Revitalising Indian Agriculture and Boosting Farmer Incomes’. It suggests strategies for six Indian states and underlies the importance of the diversified approach to different states.

    Why agriculture is central to Indian economy

    • Agriculture engages close to 42 per cent of the country’s workforce.
    • With its close interlinkage with poverty, it is best positioned to alleviate problems of malnutrition and hunger.
    • In addition, agriculture supplies inputs for other industries.
    • It is critical for triggering a multiplier effect in the economy, where a financially empowered farming community triggers a demand-led growth, particularly for manufactured products and services.
    • There is no doubt that the sector needs to grow not just for those employed in it but also for the economy as a whole.

    Growth strategy needs to take into account diversity across the states

    • The growth process of agriculture should not just more efficient, and inclusive of India’s small and marginal but is also sustainable — both financially and environmentally.
    • But then comes the question of the diversity in Indian states, where they differ as much on factors of production like land and water as they do on access to market opportunities.
    • They even differ in their vulnerabilities to climate and weather changes.
    • This begs the question, should the roadmap not be customised to the needs, vulnerabilities, and resource-base of each state?

    Strategies for six states

    • The recently published book “Revitalising Indian Agriculture and Boosting Farmer Incomes” proposes strategies for six Indian states: Punjab, Madhya Pradesh, Gujarat, Uttar Pradesh, Bihar and Odisha.
    • In the six states, three factors explained most of the agrarian growth.
    • One, access to infrastructure — mainly irrigation and roads.
    • Two, diversification to high value agricultural products like fruits, vegetables, and allied activities like dairy and poultry.
    • Three, price incentives or favourable terms of trade.
    • Bringing markets closer to farmers and increasing the efficiency of the value-chains emerged as an important factor that explained agricultural growth in Gujarat, Madhya Pradesh, Odisha, and Bihar.
    • By ensuring timely access to sufficient irrigation, states like Gujarat and Punjab could explain their high performances.
    • Role of uninterrupted quality power too emerged important in this.
    • Diversification of the agricultural basket of a state was found to strengthen a state’s agri-performance.

    Relation between growth rate and policy reforms

    • The requirement to undertake policy reforms, mainly related to marketing, emerged as a key driver and predictor of growth.
    • The NITI Aayog’s Agricultural Markets and Farmer Friendly Reforms Index — AMFFRI evaluates Indian states on the extent to which each of them undertook required agri-reforms.
    • A low AMFFRI rank implies the state is undertaking desired reforms.
    • It was found that states that undertook reforms, and were thus ranked low on AMFFRI, witnessed a relatively faster agri-GDP growth rate.
    • States which did not undertake required reforms, and thus were ranked high on the AMFFRI witnessed relatively lower agri-GDP growth rates.
    • There were some exceptions: Karnataka, Haryana and Maharashtra.
    • These states undertook reforms, and thus had low AMFFRI ranks, but they witnessed a low agri-GDP growth rate.
    • This is likely to be attributed to the delayed effect of reforms on the agri-performance.

    Way forward

    • As a part of the roadmap, the book makes a case for states to move beyond production-centric approach to a value-chain approach with FPOs at its centre.
    • It highlights importance and requirement of growing public investments in basic infrastructure.
    • And finally, in the longer run, rationalising subsidies via direct income transfer is suggested.

    Consider the question “Despite its comparatively lower contribution to the GDP, agriculture plays a central role in the Indian economy. What are the factors that make agriculture central to the economy? Suggest the pathway to fuel the growth of the sector.”

    Conclusion

    If the government follows this path of investing in infrastructure, ensuring a more diversified agriculture and linking small-holder FPOs with markets, it will pay rich dividends not only to the farming community but also the entire economy.

  • Farmers produce organisations (FPOs)

    The article analyses the role farmers produce organisations (FPOs) can play in improving the bargaining power of the small farmers and also suggest ways to improve FPOs.

    Declining size of farm holdings

    • The average farm size in India declined from 2.3 hectares (ha) in 1970-71 to 1.08 ha in 2015-16.
    • The share of small and marginal farmers increased from 70 per cent in 1980-81 to 86 per cent in 2015-16.
    • At the state level, the average size of farm holdings in 2015-16 ranged from 3.62 ha in Punjab, 2.73 in Rajasthan and 2.22 in Haryana to 0.75 in Tamil Nadu, 0.73 in Uttar Pradesh, 0.39 in Bihar and 0.18 in Kerala.

    Encouraging FPOs to help small farmers

    • Small farmers face several challenges in getting access to inputs and marketing facilities.
    • In the last decade, the Centre has encouraged farmer producer organisations (FPOs) to help farmers.
    • Since 2011, it has intensively promoted FPOs under the Small Farmers’ Agri-Business Consortium (SFAC), NABARD, state governments and NGOs.
    • The membership of an FPO ranges from 100 to over 1,000 farmers.
    • The ongoing support for FPOs is mainly in the following two forms:
    • 1) A grant of matching equity (cash infusion of up to Rs 10 lakh) to registered FPOs.
    • 2) A credit guarantee cover to lending institutions (maximum guarantee cover 85 per cent of loans not exceeding Rs 100 lakh).
    • The budget for 2018-19 announced supporting measures for FPOs including a five-year tax exemption.
    • The budget for 2019-20 talked of setting up 10,000 more FPOs in the next five years.
    • Some studies show that we need more than one lakh FPOs for a large country like India while we currently have less than 10,000.

    Looking at the performance of FPOs in last decade

    • Experience shows a mixed performance of FPOs in the last decade.
    • Some estimates show that 30 per cent of these are operating viably while 20 per cent are struggling to survive.
    • The remaining 50 per cent are still in the initial phase of mobilisation and business planning.
    • NABARD has undertaken a field study on the benefits of FPOs in Punjab and Madhya Pradesh.
    • The study shows that in nascent FPOs, the proportion of farmer members contributing to FPOs activities is 20-30 per cent while for the emerging and mature FPOs it is higher at about 40-50 per cent.
    • A study by International Food Policy Research Institute (IFPRI) has undertaken a comparative study of FPOs in Maharashtra and Bihar.
    • In Maharashtra, some of the FPOs have organically evolved (OFPOs) when farmers have taken the lead to adopt market-oriented practices, develop cost-effective solutions in production and marketing.
    • In the case of Bihar, almost all FPOs have been promoted (PFPOs).

    Challenges

    • Studies of NABARD show that there are some important challenges for building sustainable FPOs.
    • Some of these are lack of technical skills, inadequate professional management, weak financials, inadequate access to credit, lack of risk mitigation mechanism and inadequate access to market and infrastructure.

    Focusing on 3 issues for the improvement of FPOs

    1) Getting credit

    • Issues such as working capital, marketing, infrastructure have to be addressed while scaling up FPOs.
    • Banks must have structured products for lending to FPOs.
    • These organisations lack professional management and, therefore, need capacity building.

    2) Linking with input companies

    • FPOs have to be linked with input companies, technical service providers, marketing/processing companies, retailers etc.
    • They need a lot of data on markets and prices and other information and competency in information technology.

    3) Augmenting the size of land

    • The FPOs can be used to augment the size of the land by focusing on grouping contiguous tracts of land as far as possible — they should not be a mere grouping of individuals.
    • Women farmers also can be encouraged to group cultivate for getting better returns.
    • FPOs can also encourage consolidation of holdings.

    Consider the question “How FPOs can play an important part in helping the small farmers by improving their bargaining power? What are the challenges faced by the FPOs?”

    Conclusion

    The FPOs have to be encouraged by policy makers and other stakeholders apart from scaling up throughout the country to benefit particularly the small holders.

  • Enabling the Business of Agriculture (EBA) 2019,

    Enabling the Business of Agriculture (EBA) 2019, published by the World Bank highlights the constraints faced by farmers. The article highlights the key findings of the publication.

    Constraints in carrying out farming activity

    • Debates around the farm laws have brought to light the issue of developing a sound regulatory framework to promote India’s agricultural growth.
    • The fact remains that farmers, mainly smallholders, across India continue to face various constraints.
    • They include constraints in accessing agricultural inputs, markets, finance, human resources, and information, which are critical for increasing farmers’ competitiveness.
    • A recent publication by the World Bank titled Enabling the Business of Agriculture (EBA) 2019 measures the extent to which government regulatory systems in 101 countries worldwide make it easier for their farmers to operate agricultural activities.
    • These indicators measure the strength of a country’s agricultural regulatory environment pertaining to market integration and entrepreneurship in agriculture.
    • Among 101 countries covered, India ranked 49 on the EBA aggregate score.

    Key takeaways from EBA for India

    • India lags behind its close competitors in world agriculture, namely China, Brazil, and Russia.
    • Compared to these three countries, India has the weakest performance on five out of eight indicators.
    • They are registering fertilizer and machinery, securing water, sustaining livestock, and protecting plant health indicators.
    • Registering fertilizer and machinery indicators measure domestic laws and regulations that provide farmers access to fertilizer and agricultural machinery.
    • The regulatory processes that help farmers make appropriate decisions regarding the level of investment in irrigation are measured by securing water indicator.
    • Sustaining livestock indicator captures the quality of regulations affecting farmers’ access to livestock farming inputs.
    • The quality of legislation on phytosanitary standards (SPS) is captured through the protecting plant health indicator.

    Need to develop a suitable regulatory system

    • Governments can play a critical role in this regard by enacting laws and regulations.
    • Such laws and regulations can influence farmers’ access to agricultural inputs, cost of production, agricultural markets and value chains, the competitiveness of farmers, and private investment in the farming sector.
    • The regulatory system that governs irrigation management is essential for reducing the variability of farm output, prices, and incomes, minimising vulnerability to natural shocks, and incentivising the production of riskier and high returns crops.
    • Gaining access to the global agricultural value chain requires a sound regulatory framework on SPS.

    India’s strong areas

    • The comparative score of India on supplying seed, trading food, and accessing finance indicators is high.
    • Supplying seed indicator evaluates laws and regulations that ensure timely release of seed to farmers.
    • The trading food indicator assesses laws and regulations that facilitate exporting of farm products by farmers.
    • The regulatory framework on the use of warehouse receipts is assessed using accessing finance indicator.
    • A robust warehouse receipts system enables the farmers to obtain the credit needed to invest in agriculture.

    Opportunity for India

    • The future of world agriculture and food production is expected to increasingly depend on middle-income countries such as China, India, Brazil, and Indonesia.
    • To make the best use of this great opportunity, India needs to put in place an agricultural regulatory system that would make it easier for its farmers to conduct agricultural activities.

    Consider the question “Farmers, mainly smallholders, across India continue to face various constraints in carrying out farming activities. What are the implications of such constraints? What role government can play in removing these constraints?”

    Conclusion

    The EBA project results reveal that, compared to its close competitors, the strength of India’s agricultural regulatory environment is weak on the whole and with respect to key performance indicators.