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Subject: Agriculture

  • Sugarcane Pricing in India

    Earlier this month, the Supreme Court issued notices to States and major sugar producers to develop a mechanism to ensure that farmers are paid on time.

    Who determines Sugarcane prices?

    Sugarcane prices are determined by the Centre as well as States.

    1. The Centre announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, which is chaired by Prime Minister.
    2. The State Advised Prices (SAP) are announced by key sugarcane producing states which are generally higher than FRP.

    Minimum Selling Price (MSP) for Sugar

    • The price of sugar is market-driven & depends on the demand & supply of sugar.
    • However, with a view to protecting the interests of farmers, the concept of MSP of sugar has been introduced since 2018.
    • MSP of sugar has been fixed taking into account the components of Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills.

    Basis of price determination

    • With the amendment of the Sugarcane (Control) Order, 1966, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the Fair and Remunerative Price (FRP)’ of sugarcane in 2009-10.
    • The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
    • This is done in consultation with the State Governments and after taking feedback from associations of the sugar industry.

    Try this PYQ:

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

    (a) Cabinet Committee on Economic Affairs

    (b) Commission for Agricultural Costs and Prices

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

    (d) Agricultural Produce Market Committee

     

    [wpdiscuz-feedback id=”vewzy6vmxu” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

    What is FRP?

    • FRP is fixed under a sugarcane control order, 1966.
    • It is the minimum price that sugar mills are supposed to pay to the farmers.
    • However, states determine their own State Agreed Price (SAP) which is generally higher than the FRP.

    Factors considered for FRP:

    • The amended provisions of the Sugarcane (Control) Order, 1966 provides for fixation of FRP of sugarcane having regard to the following factors:

    a) cost of production of sugarcane;

    b) return to the growers from alternative crops and the general trend of prices of agricultural commodities;

    c) availability of sugar to consumers at a fair price;

    d) price at which sugar produced from sugarcane is sold by sugar producers;

    e) recovery of sugar from sugarcane;

    f) the realization made from the sale of by-products viz. molasses, bagasse, and press mud or their imputed value;

    g) reasonable margins for the growers of sugarcane on account of risk and profits.

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  • Sub-Mission on Fodder and Feed

    Context

    The government recently announced a Sub-Mission on Fodder and Feed.

    Why availability of good and affordable quality feed and fodder matters

    • A study by the Indian Grassland and Fodder Research Institute has observed that for every 100 kg of feed required, India is short of 23.4 kg of dry fodder, 11.24 kg of green fodder, and 28.9 kg of concentrate feed.
    • Low milk productivity: The lack of good quality feed and fodder impacts the productivity levels of cattle.
    • This is one of the chief reasons why Indian livestock’s milk productivity is 20%-60% lower than the global average.
    • High input cost: If we break down the input costs, we find that feed constitutes 60%-70% of milk production costs.
    • When the National Livestock Mission was launched in 2014, it focused on supporting farmers in producing fodder from non-forest wasteland/grassland, and cultivation of coarse grains.
    • However, this model could not sustain fodder availability due to a lack of backward and forward linkages in the value chain.

    Why Sub-Mission on Fodder and Feed is significant

    • As about 200 million Indians are involved in dairy and livestock farming, the scheme is important from the perspective of poverty alleviation.
    • The Sub-Mission on Fodder and Feed intends to create a network of entrepreneurs who will make silage (the hub) and sell them directly to the farmers (the spoke).
    • Bringing down the input cost: The large-scale production of silage will bring down the input cost for farmers since silage is much cheaper than concentrate feed.
    • Objective: The revised scheme has been designed with the objectives of increasing productivity, reducing input costs, and doing away with middlemen (who usually take a huge cut).
    • Since India has a livestock population of 535.78 million, effective implementation of this scheme will play a major role in increasing the return on investment for our farmers.

    About the Sub-Mission on Fodder and Feed

    • The scheme will provide 50% capital subsidy up to ₹50 lakh towards project cost to the beneficiary for infrastructure development and for procuring machinery for value addition in feed such as hay/silage/total mixed ration.
    • Private entrepreneurs, self-help groups, farmer producer organizations, dairy cooperative societies, and Section 8 companies (NGOs) can avail themselves of the benefits under this scheme.
    • The scheme can be used for covering the cost of infrastructure/machinery such as bailing units, harvester, chaff cutter, sheds, etc.

    Challenges and solution

    • Seasonal availability: A major challenge in the feed sector emanates from the fact that good-quality green fodder is only available for about three months during the year.
    • Fermenting green fodder: Ideal solution would be to ferment green fodder and convert it into silage.
    • Hence, under the fodder entrepreneurship program, farmers will receive subsidies and incentives to create a consistent supply chain of feed throughout the year.

    Conclusion

    The mission will help marginal farmers reduce their input costs and help them in increasing the return on capital employed.

  • [pib] IndiGau: India’s first Cattle Genomic Chip

    The National Institute of Animal Biotechnology (NIAB), Hyderabad has launched a chip called IndiGau.

    IndiGau

    • IndiGau is India’s first Cattle Genomic Chip for the conservation of pure varieties of indigenous cattle breeds like, Gir, Kankrej, Sahiwal, Ongole etc.
    • It is purely indigenous and the largest cattle chip in the world.
    • It has 11,496 markers more than that placed on 777K Illumina chip of US & UK breeds.
    • The manufacturing of this chip is in synergy with Rashtriya Gokul Mission and is a great example of Atmanirbhar Bharat.

    Utility of IndiGau

    • Indigenous bovines are robust and resilient and are particularly suited to the climate and environment of their respective breeding tracts,
    • Their productivity is less likely to be impacted by the adversities of climate change.
    • The milk of indigenous animals is high in fat and SNF (solids-not-fat) content.

    (SNF content are the substances in milk other than butterfat and water in the form of casein, lactose, vitamins, and minerals which contribute significantly to the nutritive value of milk.)

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    Back2Basics: National Programme for Bovine Breeding and Dairy Development

    • The NPBBDD has been formulated by merging four ongoing schemes of the Department of Animal Husbandry, Dairying and Fisheries in the dairy sector.
    • It was launched in Feb 2014.
    • This merger has been done to integrate milk production and dairying activities in a scientific and holistic manner to meet the increasing demand for milk in the country.

    Components of the scheme

    NPBBDD has the following three components.

    • National Programme for Bovine Breeding (NPBB)
    • National Programme for Dairy Development (NPDD) and
    • Rashtriya Gokul Mission.

    Differences between all these schemes:

    1) National Programme for Bovine Breeding

    It aims-

    • To arrange quality Artificial Insemination services at farmers’ doorstep
    • To bring all breedable females under organized breeding through Artificial Insemination or natural service using germplasm of high genetic merits

    2) National Programme for Dairy Development

    It aims-

    • To create and strengthen infrastructure for the production of quality milk including cold chain infrastructure linking the farmer to the consumer
    • To strengthen dairy cooperative societies/Producers Companies at the village level
    • To increase milk production by providing technical input services like cattle-feed, and mineral mixture etc.

    3) Rashtriya Gokul Mission

    It aims-

    • To undertake breed improvement programme for indigenous cattle breeds so as to improve the genetic makeup and increase the stock.
    • To enhance milk production and productivity of indigenous bovines.
    • To upgrade nondescript cattle using elite indigenous breeds like Gir, Sahiwal, Rathi, Deoni, Tharparkar, Red Sindhi.

  • National Mission on Edible Oil-Oil Palm (NMEO-OP)

    The Centre has increased the financial outlay for the National Mission on Edible Oil-Oil Palm (NMEO-OP).

    About NMEO-OP

    • National Mission on Oilseeds and Oil Palm (NMOOP) was implemented during the 12th Five Year Plan, to expand the oil palm areas and increase the production of edible oils.
    • It was later merged with the National Food Security Mission.
    • NMEO-OP aims to resolve to allow India to be independent or self-reliant in edible oil production.
    • Through this mission, more than ₹11,000 crores will be invested in the edible oil ecosystem.
    • The government will ensure that farmers get all the needed facilities, from quality seeds to technology.
    • Along with promoting the cultivation of oil palm, this mission will also expand the cultivation of our other traditional oilseed crops.

    Why such a mission?

    • India is one of the major oilseeds growers and importers of edible oils.
    • India’s vegetable oil economy is the world’s fourth-largest after the USA, China & Brazil.
    • The oilseed accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% value of all agricultural commodities.
    • During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
    • A substantial portion of our requirement of edible oil is met through the import of palm oil from Indonesia and Malaysia.
    • It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.

    Alternative sources

    • Oil Palm is comparatively a new crop in India and is the highest vegetable oil yielding perennial crop.
    • With quality planting materials, irrigation, and proper management, there is a potential of achieving 20-30 MT Fresh Fruit Bunches (FFBs) per ha after attaining the age of 5 years.
    • Therefore, there is an urgent need to intensify efforts for area expansion under oil palm to enhance palm oil production in the country.
    • Tree Borne Oilseeds (TBOs), like Sal, Mahua, Simarouba, kokum, Olive, Karanja, Jatropha, Neem, Jojoba, Wild Apricot, Walnut, tung etc. are cultivated/grown in the country under different agro-climatic conditions.
    • These TBOs are also good sources of vegetable oil and therefore need to be supported for cultivation.

    Try answering this PYQ:

    Q.An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?

    (a) Rice and wheat only

    (b) Rice, wheat, and pulses only

    (c) Rice, wheat, pulses, and oilseeds only

    (d) Rice, wheat, pulses, oilseeds, and vegetables

     

    Post your answers here: [wpdiscuz-feedback id=”7x9t7q32mz” question=”Please leave a feedback on this” opened=”1″][/wpdiscuz-feedback]

  • [pib] Operation Greens Scheme

    The Union Minister of Food Processing Industries has provided useful information regarding the Op Greens Scheme.

    Operation Greens Scheme

    • Ministry of Food Processing Industries launched the Operation Greens scheme in November, 2018.
    • The scheme aims for integrated development of the Tomato, Onion, and Potato (TOP) value chain.
    • It aims to promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities and value addition etc. in identified production clusters.
    • Under the scheme, state-wise funds are not allocated as the scheme is demand-driven and projects are approved as per scheme guidelines on the basis of applications received for setting up of projects in eligible production clusters.

    Objectives:

    • To enhance value realization of TOP farmers
    • Reduction in post-harvest losses
    • Price stabilization for producers and consumers and
    • Increase in food processing capacities and value addition etc.

    Key provisions

    • Short term intervention by way of providing transportation and storage subsidy @ 50% and
    • long term intervention through value addition projects in identified production clusters with Grant-in-aid @ 35% to 70% of eligible project cost subject to maximum of Rs. 50 crore per project

  • How to exit farming risk trap

    Context

    The farmers’ protest against farm laws brings into focus the factors afflicting agriculture in India.

    Issues of Indian agriculture

    • Some 50 years after the Green Revolution, an all-India agricultural landscape is characterized by relatively low productivity levels that co-exist with high levels of variation in crop yields across our farming districts.
    • Excessive control: Various government agencies have a say on all aspects of the farmer’s livelihood — the latest count includes 13 central and countless state ministries and agencies.
    • These agencies oversee rural property rights, land use, and land ceilings; commodity prices, input subsidies, and taxes, infrastructure, production, credit, marketing and procurement, public distribution, research, education, trade policy, etc.
    • Poor policies: The result has been a mix of arbitrary and conflicting policy interventions by both the central and state government agencies.
    • Poor provision of basic public goods: This, combined with poor and varying levels of provision of basic public goods, including irrigation explains the poor state of Indian agriculture.

    Risk-to-return in agriculture

    • The following figures indicate the median (typical) district-level yield (in tonnes-per-hectare) for four major crops — rice, wheat, maize, and cotton — along with the geographic variability of this yield (risk) across all reporting districts for each year from 1966 to 2018.
    • Combining these two values — median district yield and its geographic variability across all farming districts — provides us a measure of the all-India level of risk-to-return, in percentage terms.

    Lessons from risk-to-return profile

    • One, the large gap in rice and wheat yields that opened up between Punjab and Haryana and the farm districts in the rest of the country remains far from being closed.
    • Limited mobility of ideas: There is severe unevenness in the provision of common goods across districts — irrigation, roads, power, etc.
    • There is also the absence of well-functioning markets for agricultural land, crops, and inputs, the slow labour reform, and the poor quality of education.
    • These two factors have worked to reduce overall resource mobility within and across our farming districts.
    • Most importantly, they have limited the mobility of ideas and technology needed to increase productivity and reduce the variation of yield across districts.
    • Decentralization failed: As a result of lack of mobility, the real promise of a decentralized system — of experimentation, of learning from each other, and the adoption of best practices and policies — has failed to materialize.
    • Distortion due to subsidies: Various input subsidies and minimum price guarantee procurement schemes provided by the state have worked to worsen the overall levels of productivity and the risk in agriculture, generating adverse effects for all of us, through the degradation of our water resources, soil, health, and climate.
    • At the same time, these policies have tightened the trap our farm households find themselves in.
    • Thus, as is evident in the next chart, outside of rice and wheat, the risk-to-return levels are even higher in the case of maize and cotton, including for Punjab.
    • As a result, the farm households of Punjab and Haryana fear both, the loss of state support for rice and wheat and the higher risks implied by a switch to other crops.

    Way forward

    • Minimize risk: The guiding principle for three farm laws must be to create conditions that allow farm households to maximize their income while minimizing the overall level of risk in Indian agriculture.
    • Freedom of choice: Farmers must be made free to determine the best mix of resources, land, inputs, technology, and organizational forms for their farms.
    • More freedom: Farmers, just as entrepreneurs in the non-farm sector, must be allowed to enter and exit agriculture, on their own terms and contract with whomever they wish.
    • Allow entry of corporates: Entry of the large or small private corporates in the Indian agricultural stream will help the Indian farmer, along with the rest of us, move to a low-risk, high-return path of progress.

    Conclusion

    The more we delay the needed reforms, the more difficult it will prove to be for all of us to extract ourselves out of these risk-laden currents of agriculture.

  • What is National Farmers Database?

    The Centre’s new National Farmers Database will only include land-owning farmers for now as it will be linked to digitized land records.

    National Farmers Database

    • The Central government had proposed an Agristack initiative to create a digital database that focuses on farmers and the agricultural sector.
    • As part of the first step of this initiative, the government has initiated a farmers database that would serve as the core of the Agristack.
    • The database would be linked to the digital land record management system and would thus only include farmers who were legal owners of agricultural land.
    • The database would facilitate online single sign-on facilities for universal access and usher in proactive and personalized services to farmers such as DBT, soil and plant health advisories, weather advisories
    • It would also facilitate seamless credit & insurance, seeds, fertilizers, and pesticide-related information.

    Need for such database

    • India has 140 million operational farmland holdings.
    • The availability of a database would serve an important role in the formulation of evidence-based policies for the agricultural sector.
    • Also, the government can make use of the database for targeted service delivery with higher efficiency and in a focused and time-bound manner.
    • The database could be used to select beneficiaries of government schemes.
    • The availability of data will make it possible to implement digital technologies like AI/Machine Learning, IoT in the agricultural domain, thus opening up the sector to immense opportunities for improvement in productivity.

    Back2Basics: AgriStack Initiative

    • The AgriStack is a collection of technologies and digital databases proposed by the Central Government focusing on India’s farmers and the agricultural sector.
    • The central government has claimed that these new databases are being built to primarily tackle issues such as poor access to credit and wastage in the agricultural supply chain.
    • Under AgriStack’, the government aims to provide ‘required data sets’ of farmers’ personal information to Microsoft to develop a farmer interface for ‘smart and well-organized agriculture’.
    • The digital repository will aid the precise targeting of subsidies, services, and policies.
    • Under the program, each farmer of the country will get what is being called an FID, or a farmers’ ID, linked to land records to uniquely identify them.

  • [pib] King Chilli ‘Raja Mircha’ from Nagaland exported to London

    In a major boost to exports of Geographical Indications (GI) products from the north-eastern region, a consignment of ‘Raja Mircha’ also referred to as king chili from Nagaland was exported to London via Guwahati by air for the first time.

    Raja Mircha

    • The King chili from Nagaland is also referred to as Bhoot Jolokia and Ghost pepper.
    • It got GI certification in 2008.
    • Raja Mircha contains Scoville Heat Units (SHUs) which makes it the world’s hottest chili.
    • It belongs to the genus Capsicum of the family Solanaceae.
    • It has been considered as the world’s hottest chili and is constantly on the top five in the list of the world’s hottest chilies based on the SHUs.

    Answer this PYQ in the comment box:

    Q.Which of the following has/have been accorded ‘Geographical Indication’ status?

    1. Banaras Brocades and Sarees
    2. Rajasthani Daal-Bati-Churma
    3. Tirupathi Laddu

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    Back2Basics: Geographical Indication (GI)

    • The World Intellectual Property Organization defines a GI as “a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin”.
    • GIs are typically used for agricultural products, foodstuffs, handicrafts, industrial products, wines, and spirit drinks.
    • Internationally, GIs are covered as an element of intellectual property rights under the Paris Convention for the Protection of Industrial Property.
    • They have also covered under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.

  • [pib] Bhartiya Prakritik Krishi Padhati (BPKP)

    The Union Minister of Agriculture has provided useful information regarding the Bhartiya Prakritik Krishi Padhati (BPKP).

    Bhartiya Prakritik Krishi Padhati (BPKP)

    • Natural farming is promoted as BPKP under a centrally sponsored scheme- Paramparagat Krishi Vikas Yojana (PKVY).
    • The scheme mainly emphasizes the exclusion of all synthetic chemical inputs and promotes on-farm biomass recycling.
    • It stresses biomass mulching; use of cow dung-urine formulations; plant-based preparations and time to time working of soil for aeration.
    • Under BPKP, financial assistance of Rs 12200/ha for 3 years is provided for cluster formation, capacity building, and continuous handholding by trained personnel, certification, and residue analysis.

    About Paramparagat Krishi Vikas Yojana

    • “PKVY” is an elaborated component of Soil Health Management (SHM) of the major project National Mission of Sustainable Agriculture (NMSA).
    • Under PKVY Organic farming is promoted through the adoption of the organic village by cluster approach and PGS certification.

    The Scheme envisages:

    • Promotion of commercial organic production through certified organic farming.
    • It will raise farmer’s income and create a potential market for traders.

    Program implementation

    • Fifty or more farmers will form a cluster having 50 acres of land to take up the organic farming under the scheme.
    • In this way, during three years 10,000 clusters will be formed covering a 5.0 lakh acre area under organic farming.
    • There will be no liability on the farmers for expenditure on certification.
    • Every farmer will be provided Rs. 20,000 per acre in three years for the seed to harvesting crops and to transport produce to the market.
    • Organic farming will be promoted by using traditional resources and organic products will be linked with the market.
    • It will increase domestic production and certification of organic produce by involving farmers.

    Answer this PYQ in the comment box:

    Q.With reference to organic farming in India, consider the following statements:

    1. ‘The National Programme for Organic Production (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
    2. ‘The Agricultural and Processed Food Products Export Development Authority (APEDA) functions as the Secretariat for the implementation of NPOP.
    3. Sikkim has become India’s first fully organic State.

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

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

  • [pib] One District One Focus Product Scheme

    ODOFP programme

    • The ODOFP programme cover products of agriculture and allied sectors for 728 districts of the country.
    • The products have been identified from agricultural, horticultural, animal, poultry, milk, fisheries, aquaculture, marine sectors across the country.
    • These identified products will be supported under the PM-FME scheme of the Ministry of Food Processing Industries, which provides incentives to promoters and micro-enterprises
    • This scheme is being implemented for a period of five years from 2020-21 to 2024-25.
    • The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.

    About ODOP

    • The ODOP scheme aims to identify one product per district based on the potential and strength of a district and national priorities.
    • A cluster for that product will be developed in the district and market linkage will be provided for that.
    • It is operationally merged with the ‘Districts as Export Hub’ initiative implemented by the Director-General of Foreign Trade (DGFT), Department of Commerce.
    • Under the initial phase of the ODOP programme, 106 Products have been identified from 103 districts across 27 States.

    Back2Basics: PMFME Scheme

    • A centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
    • It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
    • It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
    • The scheme envisions directly assist the 2,00,000 micro food processing units in providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.