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Subject: Agriculture

  • Yellow Rust

     

    Yellow Rust was detected in wheat crops in parts of Punjab and Haryana.

    Yellow Rust

    • Yellow Rust disease appears as yellow stripes of powder or dust on leaves and leaf sheaths of the wheat crop. This yellow powder comes out on clothing or fingers when touched.
    • This occurs when the rust colonies in the leaves drain the carbohydrates from the plant and reduce the green leaf area.
    • In India, it is a major disease in the Northern Hill Zone and the North-Western Plain Zone and spreads easily during the onset of cool weather and when wind conditions are favourable.
    • Rain, dew and fog favour the disease’s development.

    Impact of the disease

    • The disease can spread rapidly under congenial conditions and affects crop development, and eventually the yield.
    • Yield due to the disease can affected by between 5 and 30 per cent.
    • According to the IIWBR advisory, if farmers observe yellow rust in patches in their wheat fields, they should spray fungicides.

    Other facts: Pusa Yashasvi

    • Last year, a new variety of wheat called HD-3226 or Pusa Yashasvi was released by the Indian Agricultural Research Institute.
    • It had higher levels of resistance against major rust fungi such as the yellow/stripe, brown/leaf and black/stem.

  • [op ed of the day] Stay with stimulus

    Context

    The stimulus needs to continue and the reforms will help to keep the economy going. If gross savings and investment rates keep on falling it is difficult to revive the economy.

    What was expected in the last budget?

    • Increase in pubic investment: The first thing, it said, was to increase public investment and not play statistical or token announcement games.
    • The upswing in manufacturing growth, from negative to slightly less than 3 per cent (not industrial growth, because that includes mining and electricity), needed consolidation.
    • Real outlays in infra did not go up: Real outlays on the infrastructure needed to go up, but they did not.
      • So the push to private demand and a virtuous cycle of growth was missed.
      • The implicit numbers in the Budget math comprise growth of around 7 per cent, assuming a 5 per cent inflation rate.

    Prospects of the Agri-sector

    • A good sign in Agri in midterm: For agriculture, in the medium-term, we are alright. Kharif grain production was 6.4 per cent higher than the previous five-year average output.
      • Kharif oilseeds output around eleven lakh tonnes above the earlier year.
      • This was, however, based on a delayed monsoon which caused problems and anxieties in the second quarter of this year.
    • Nightmare of government unloading grain in the market: Foodgrains are doing well and we have huge food stocks.
      • But, instead of a blessing, the government turned public operations in grain into a nightmare by announcing that FCI will unload grain at a reserve price less than MSP.
      • Rabi acreage recovered and is now 8 per cent more than last year, but the policy of government operations to reduce the market price of grain by its intervention is a nightmare.
    • This is bound to affect input growth in the expanded acreage in the winter crops.

    Wrong policy in Agriculture

    • Terms of trade against agriculture: The terms of trade are going against agriculture, according to CACP (Commission for Agricultural Costs & Prices) estimates, and selling of the grain will make it worse.
    • While the fundamentals are alright, to wallop the farmer with a “cut in the reserve price” would harm the farmers.
    • The rabi report of CACP will say that the terms of trade have gone down more.

    Conclusion

    The Government should continue with the stimulus and opt for the reforms in the economy only to keep the economy going. If the gross savings and investment rates keep falling it would be difficult to revive the economy. If savings keep up, the government will have actual space to divert some real resources to infrastructure investment.

     

     

     

     

  • India’s first ‘fruit train’

     

    A ‘fruit train’, said to be the first of its kind in India, was flagged off from Tadipatri Railway Station in Anantapur district of Andhra.

    About the fruit train

    • This is the first time in India that an entire train is being sent to the gateway port (JNPT) for export.
    • This helps save both time and fuel as 150 trucks would have been required to send a consignment of this size by road to JNPT, which is over 900 km away, before the temperature-controlled containers are loaded on ships.
    • The bananas are being exported under the brand name ‘Happy Bananas’.
    • Farmers from Putlur region in Anantapur and Pulivendula in Kadapa district are exporting ‘Green Cavendish’ bananas to many international markets.

  • [op-ed of the day] Food for Expediency

    Context

    A substantial rise in consumer food price inflation to 14.12% in December 2019, the highest ever in the past six years, has driven the retail price inflation in this country.

    Discrepancies in the fiscal deficit

    • Policy dilemma for the RBI: Though the CPI was at 14.12% in December but with the core inflation rate still not overshooting the Reserve Bank of India’s (RBI) medium-term target of 4(+/- 2)%.
      • Speculations hover as to whether the RBI monetary policy committee will go for another rate cut in the coming month.
      • This is a policy dilemma for the central bank
      • Why is the dilemma? The dilemma is because the moot issues regarding the government’s key economic estimates, such as the fiscal deficit, largely remain unresolved.
    • Discrepancies flagged by the CAG: The CAG has stated that the current figures on deficit have been kept at a 1.5% to 2% low by not including the government’s off-budget borrowings from public accounts, such as the National Small Savings Fund (NSSF).
      • According to media reports, such off-budget expenditure of the current government stands at â‚č1.5 lakh crore in 2019–20.
      • The major portion of off budged expenditure on food subsidy: About three-fourths of the incremental off-budget expenditure is on account of under-recoveries in food subsidies of the Food Corporation of India (FCI).
    • Low allocation but high expenditure on food subsidy: For instance, the 2019–20 Union Budget had provisioned food subsidy atâ‚č1.84 lakh crore.
      • While the overdue of the FCI is already atâ‚č1.86 lakh crore.
      • For these burgeoning overdue, FCI’s ­off-budget borrowings from the NSSF have been on the rise.

    Excessive stock by the government and rising inflation

    • Issue of supply management: The issues of agricultural supply management are relegated to the background by the standard causality argument of “crop damages” caused by excessive rains and that the inflation will ease out once the new harvest comes in.
      • This argument can hold some water for horticulture crops like onions that saw an almost 200% rise in price in November and December.
      • Unable to explain inflation in wheat and other cereals: This argument may not find traction in explaining the price inflation of wheat and other cereals.
    • holding the excessive cereal stock: With the government currently stocking much higher quantities of cereals at the FCI than the buffer norms.
      • 45.8 million tonnes of wheat as against the buffer norm of 27.5 million tonnes and nearly double the amount of rice vis-Ă -vis the buffer norm of 13.5 million tonnes.
      • India is now a cereal surplus economy.
      • Why then the inflation in cereal prices? Is this artificially created by the government through its irrational stocking practice?
      • Some fundamental concerns are triggered at this juncture.
    • Concerns with excess stocks
      • First-Higher stock means higher subsidy bill-With the economic costs of the FCI being 12 times or more than the allocation cost of the grains through the public distribution system-higher stocks would imply higher subsidy bills.
      • Second–No benefit of the stock: In tandem with the first, ad hoc releasing of the stocks will not bring about any major changes in the situation.
      • Third–Hiding fiscal deficit from the public: In this context, off-budget borrowing can serve various politically expedient purposes.
      • It has enabled the government to showcase a consistently low share (below 1%) of subsidies in national income.
      • Thereby diverted the public attention from two critical facts: the FCI’s tipping financials and the country’s (grossly) underestimated fiscal deficit.

    Conclusion

    The government must recall that the “illusion” of this acceptable limit of inflation potentially rests upon the savings of the common consumers, which is being unduly misemployed by the government.

     

  • [op-ed snap] A farm wish list for the budget

    Context

    As finance minister presents the budget the FM need to ensure transparency and to fully account for the food subsidy.

    The excess buffer stock and need to reform

    • A buffer stock norm and actual stock: A buffer stock norm is at 21.4 million tonnes (mt).
      • Actual stock far exceeds the norm: The actual stocks of grains with the central pool stood at 75.5 mt.
      • Which is 3.5 times what the government needs to hold.
    • The economic cost of the excess stock: At its economic cost, the value of the excess stocks with the government stands at Rs 1.6 lakh crore.
      • Potential for revenue: There is no better place to find revenue for the FM than to liquidate these stocks.
      • Need for the reform in grain management system: Unless the grain management system is reformed, the inefficiency of the grain management system will keep on increasing and the nation will suffer.

    Food subsidy reforms

    • Link food prices to procurement price: It is the time to revise the central issue of price and link it to the procurement price-say at half the procurement price.
      • Limit the population coverage: There is a need to limit this highly subsidised food of Rs 3/kg for rice and Rs 2/kg of wheat to say 40 per cent of the population.
      • Move to DBT: The real fundamental reform would be to move towards direct cash transfers for the intended beneficiaries of food subsidy.

    Fertiliser subsidy reforms

    • Imbalance in the subsidisation: The real problem of this sector is the imbalance in the policy of fertiliser subsidisation.
      • While urea (N) is subsidised to the extent of 75 per cent of its cost, phosphatic (P) and potassic (K) fertilisers are subsidised only to the tune of about 25 per cent of their cost.
    • Consequences of this imbalance: The result is the highly imbalanced use of N, P and K on farmers’ fields. Which results in
      • Giving a very low fertiliser-to-grain response ratio.
      • Degrading the soil.
      • Degrading underground water.
      • Degrading the environment with excessive nitrogen use.
      • Discouragement to natural farming: The current fertiliser subsidy discourages those who want to pursue natural farming as they don’t get subsidy anywhere near the amount chemical-based fertilisers do.
    • Reforms: There are two ways in which the fertiliser subsidy regime can be reformed.
      • Bring nitrogenous fertiliser under NBS: The solution to the imbalance in use is to bring nitrogenous fertilisers under the Nutrient Based Subsidy (NBS) scheme.
      • Cash transfer based on per hectare basis: The second option is to move towards direct cash transfers for fertilisers on a per hectare basis, with some adjustment for irrigated tracts.
      • 50,000 Crore saving: The above-mentioned reforms could result in the saving of Rs. 50,000 crores to the public exchequer.

    Way forward

    • Investing the savings where it matters the most: The savings from the reforms could be invested in-
      • Better water management, especially drip irrigation.
      • Infrastructure for agri-markets.
      • Solar trees: The investments could also be made in setting up the solar trees in the farm to harvest solar power on farmer’s fields with buyback agreements for surplus production.

  • [op-ed snap]Lifting growth, containing inflation

    Context

    There is a large scope for  the improvement in the efficiency of grain management system under the National Food Security Act (NFSA).

    Declining Agri-sector growth rate

    • India’s growth rate plummeted to 4.5 per cent in the second quarter of this fiscal.
    • The quarterly growth in GDPA (agri-GDP) is hovering at around 2 percent, it is a cause for great concern.
    • Agriculture still engages about 44 per cent of India’s workforce, which has serious consequences for the overall economy of the country.

    The bleak picture of the economy

    • Recently inflation has started to surge after a long time.
    • Inflation is led by the different components of the food segment- cereals, pulses, and vegetables.
    • There is a challenge of containing inflation and increasing the demand at the same time.
    • At the same time, there is also the challenge of maintaining the fiscal deficit by 3.3 %.
    • Recently Finance minister has launched an investment package of 102 lakh crores.
    • So, there is a need to take a look at the inefficiencies in food grain management.

    Inefficiencies in NFSA

    • It supplies a certain quantity of wheat and rice to 67 percent population.
    • It gives wheat at Rs. 2/kg and rice at Rs. 3/kg.
    • While the cost of these grains to FCI is at Rs. 25/kg and Rs. 35/kg respectively.
    • This led to the provision of Rs 1.84 lakh crores for food subsidy.
    • The buffer stocks with the FCI is far more than double the buffer stock norms as on January 1 every year.
    • This excess stock is the result of an inefficient strategy for food management.
    • The strategy where the procurement of these grains is open-ended while the disbursement is restricted.
    • The money locked in these excess stock is about 1 lakh crores.
    • If the rabi season procurement is good FCI may run out of storage space to accommodate.

    Suggestions for improvement

    • The open market operation should be increased.
    • Even if the government liquidate half of the excess stock it would fetch Rs.50,000 crores.
    • The Shanta Kumar panel had submitted the blueprint for the improvement in the grain management system.
    • Only three reiterations are needed.
    • First-while the Antyodaya category should keep getting the maximum food subsidy, the issue price should be fixed at 50% of the procurement for the rest.
    • Second- restrict the percentage of population covered under the scheme to 40 % from the present 67%
    • Third-stop the procurement of rice in the north-western states of Punjab and Haryana where the water table is depleting.

    Conclusion

    • If the government implements these three points it can save the country another Rs. 50,000 crores annually. On top of this, it will help the government to reduce its fiscal deficit.

  • NCRB Report on Farmers Suicide

    In 2017, 10,655 people involved in agriculture committed suicide in India, according to data released January 2, 2020 by the National Crime Record Bureau (NCRB).

    NCRB had released the 2017 crime data last October 2019, but held back information on suicides.

    Highlights of the report

    • NCRB highlighted that the toll was the lowest since 2013.
    • Among those who took their lives, 5,955 were farmers / cultivators and 4,700 agricultural labourers — both lower than in 2016.
    • They comprised 8.2 per cent of all suicide cases in the country in 2017.
    • In 2016, 6270 farmers killed themselves, down from 8,007 in 2015, while 5,109 farm hands committed suicide, up from 4,595.
    • The number of women farmers committing suicide, however, jumped to 480 in 2017 from 275 in ’16.

    Farm suicides over half a decade

    Years No. of farm sector suicides No. of farmers
    2017 10,655 5,955
    2016 11,379 6270
    2015 12,602 8007
    2014 12,360 5650

    Statewise data

    • In 2017, the most number of farm suicides were reportedly in Maharashtra (34.7 per cent), followed by Karnataka (20.3 per cent), Madhya Pradesh (9 per cent), Telangana (8 per cent) and Andhra Pradesh (7.7 per cent).
    • The trend was quite similar to previous year: In 2016, Maharashtra accounted for 32.2 per cent, Karnataka 18.3 per cent, MP 11.6 per cent, Andhra 7.1 per cent and Chhattisgarh 6 per cent.
    • In 2015 too Maharashtra tops in farmers suicides followed by Karnataka, Madhya Pradesh in 2016.
    • West Bengal, Odisha, Nagaland, Manipur, Mizoram, Uttarakhand, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi, Lakshadweep and Puducherry reported zero suicides by farmers or agricultural labourers.

    Causes of Farmers Suicide

    • Major causes of farm suicides were reportedly bankruptcy / indebtedness, problems in the families, crop failure, illness and alcohol / substance abuse.

    Assist this newscard with:

    [Burning Issue] Annual Crime in India Report-2017

  • Arabica Coffee

    India’s Arabica production has hit an all-time low this coffee-picking season.

    Coffee Production in India

    • Coffee is grown in three regions of India with Karnataka, Kerala and Tamil Nadu forming the traditional coffee growing region.
    • It is followed by the new areas developed in the non-traditional areas of Andhra Pradesh and Orissa in the eastern coast of the country and with a third region comprising the NE states.
    • Indian coffee, grown mostly in southern states under monsoon rainfall conditions, is also termed as “Indian monsooned coffee”.
    • The two well known species of coffee grown are the Arabica and Robusta.

    History of Coffee in India

    • In the Indian context, coffee growing started with a saint, Baba Budan who, while returning from a pilgrimage to Mecca, smuggled seven coffee beans from Yemen to Mysore in India.
    • He planted them on the Chandragiri Hills now named after the saint as Baba Budan Giri in Chikkamagaluru district of Karnataka.

  • Horticulture, Floriculture, Commercial crops, Bamboo Production – MIDH, NFSM-CC, etc.

  • Seeds, Pesticides and Mechanization – HYV, Indian Seed Congress, etc.