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Indian Agriculture: Farming Types, Features and Challenges

Last updated on October 31, 2023 by ClearIAS Team

India has one of the largest plain areas of the world-the Indo-Gangetic plain which is immensely fertile.

India has varieties of climatic conditions and soil types .

These physical variations along with factors like availability of irrigation, use of machinery, modern agricultural inputs like High Yielding Varieties (HYV) of seeds, insecticides, and pesticides have played their important roles in the evolution of different farming practices in the Indian agriculture sector.

Table of Contents

Types of farming in India

Some of the major types of farming are discussed below.

i) Subsistence farming:

The majority of farmers in India practice subsistence farming- farming for their consumption. The entire production is largely consumed by the farmers and their families and they do not have any surplus to sell in the market.

In this type of farming, landholdings are small and fragmented; cultivation techniques are primitive and simple. There is a total absence of modern equipment like tractors and farm inputs like chemical fertilizers, insecticides, and pesticides. In this farming, farmers mostly cultivate cereals along with oilseeds, pulses, vegetables, and sugarcane.

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Subsistence farming is further classified into:

Primitive subsistence agriculture is practised on patches of land with the help of primitive tools like simple digging tools and community or family labour. This type of farming is monsoon depended along with the fertility of the soil and other environmental conditions. Examples of such types are shifting agriculture and nomadic herding.

• Shifting agriculture is practised in thickly forested regions like the Amazon basin, tropical Africa, parts of southeast Asia, and northeast India. These areas receive heavy rainfall hence the vegetation regenerates quickly.
• A patch of land is cleared by felling if tress and burning them. The ashes are then mixed with the soil and crops like maize, yam, potatoes, and cassava are grown. The land is abandoned once fertility is reduced.
• nomadic herding is practised in the semi-arid and arid regions of Sahara, Central Asia, and some parts of India like Rajasthan, Jammu and Kashmir.
• Herdsmen move from place to place with their animals for fodder and water, along defined routes and such movement arises due to seasonal changes. Animals like sheep, camel, yak, and goats are most commonly reared.

Intensive subsistence agriculture is done on small lands with simple tools and more labour. The produce is enough for local consumption and to be sold outside. The sunny climate and fertile soil for most of the year permit the cultivation of more than one crop annually on the same plot. Rice, wheat, maize, pulses, and oilseeds are generally cultivated.

ii) Intensive and Extensive farming

The basic difference between these two types of farming is the amount of production per unit of land. In comparison with temperate areas of the USA, Canada, India do not practice extensive cultivation.

When a large patch of land is used for cultivation then we call it extensive farming. Here, total production may be high due to the larger area but per unit are production is low.

Intensive Farming records high production per unit of land. An example of intensive cultivation is in Kerala where the availability of land for cultivation is very limited.

iii) Commercial farming

It is just the opposite of subsistence farming as most of the produce is sold in the market for earning money. In this system, farmers use inputs like irrigation, chemical fertilizers, insecticides, pesticides, High Yielding Varieties of seeds, etc.

Some of the major commercial crops grown in different parts of India are cotton , jute, sugarcane, groundnut, etc.

Rice farming in Harayana is mainly for commercial purposes as people of this area are predominantly wheat eaters. However, in East and North-Eastern states of India, rice cultivation would be large of subsistence type.

iv) Plantation Farming:

In this type, a single cash crop is grown for sale in national and international markets. This type of agriculture involves the growing and processing of a single cash crop purely meant for sale.

Tea, coffee, rubber, banana, and spices are all examples of plantation crops. Most of these crops were introduced in India by the Britishers in the 19th Century

v) Mixed Farming:

When both raising crops and rearing animals are carried on simultaneously it is called mixed farming. Farmers engaged in mixed farming have economical advantages as well.

All classifications are based on the nature and purpose of farming hence they may overlap in some cases. For example, Banana is a plantation type of farming but can also be classified as commercial farming.

Features of Indian Agriculture

Subsistence Agriculture : Most parts of India have subsistence agriculture which has been practised in India for several hundreds of years and still prevails.

The pressure of population on Agriculture : Despite the increase in urbanization and industrialization, about 70% of the population is still directly or indirectly dependent on agriculture.

Mechanization in agriculture: Even after more than forty years of the Green Revolution and revolution in agricultural machinery and equipment, complete mechanization is still not achieved.

Monsoon dependency: Despite the large-scale expansion, only about one-third of the total cropped area is irrigated today. As a consequence, two-thirds of cropped areas are still dependent upon the monsoon.

Variety of crops: Since India has both tropical and temperate climates, crops of both climates are found in India. There are very few countries in the world that have variety comparable to that of India. You would realize that when we would discuss the different types of crops in detail.

The predominance of food crops: The production of food crops is the priority of the farmers almost everywhere in the country.

Seasonal patterns: India has three distinct agricultural/cropping seasons- Kharif, rabi, and Zaid. In India, there are specific crops grown in these three seasons. For example, rice is a Kharif crop whereas wheat is a rabi crop.

Challenges for Indian Agriculture

The challenges faced by Indian agriculture can be broadly grouped into two categories- the long-standing problems and the emerging issues from the prevailing agricultural practices, system, changing climate, and economy.

Stagnation in Production of Major Crops: Production of some of the major staple food crops like rice and wheat has been stagnating for quite some time. This is a situation that is worrying our agricultural scientists, planners, and policymakers as it creates a huge gap between the demand of the ever-growing population and the production.

High cost of Farm Inputs: Farm inputs include fertilizer, insecticide, pesticides, HYV seeds, farm labour cost, etc. Such an increase puts low and medium-land-holding farmers at a disadvantage.

Soil Exhaustion: Green revolution has played a positive role in reducing hunger in India but has negative consequences also. One of which is Soil exhaustion which means the loss of nutrients in the soil from farming the same crop over and over again.

Ground Water depletion: The second negative consequence of the green revolution is the depletion of fresh groundwater. Most of the irrigation in dry areas of Punjab, Haryana, and Western Uttar Pradesh was carried out by excessive use of groundwater. Today fresh groundwater situation in these states is alarming.

Global Climatic Change: It has been predicted that climate change’s impact on Indian agriculture would be immense. It is predicted that due to climate change, the temperature would increase, leading to an increase in sea level, more intense cyclones, unpredictable rainfall, etc. These changes would adversely affect the production of rice and wheat. Specifically, a rise in temperature in winter would affect the production of wheat in north India. Production of rice would be affected in coastal areas of India due to the ingress of saline water and an increase in the frequency of cyclones.

Impact of Globalisation : All developing countries have been affected by globalization. The most evident effect is the reduction in farmers’ income and the threat to the viability of cultivation in India. This is due to the rising input costs and falling output prices. This reflects the combination of reduced subsidy and protection to farmers. Trade liberalization exposes these farmers to competition from highly subsidized production in the developed world.

Providing Food Security: Before the introduction of the green revolution in India, we were not self-sufficient in terms of our food grain production. But last few decades agriculture is not growing with the increasing population and to ensure food security factors like accessibility, affordability as well nutritional value of the food available should be catered to.

Farmers Suicides: The farmer suicides appear concentrated in regions of high commercialization of Indian agriculture and very high peasant debt. Cash crop farmers seemed far more vulnerable than those growing food crops. Commercialization of the countryside along with a massive decline in investment in agriculture was the beginning of the decline. Privatization of many resources has also compounded the problems.

Indian Agriculture: Important Facts

The Economic Survey of India 2020-21 report stated that in FY20:

• The total food grain production in the country was recorded at 296.65 million tonnes (up by 11.44 million tonnes compared with 285.21 million tonnes in FY19).
• The government has set a target to buy 42.74 million tonnes from the central pool in FY21; this is 10% more than the quantity purchased in FY20.
• For FY22, the government has set a record target for farmers to raise food grain production by 2% with 307.31 million tonnes of food grains.
• In FY21, production was recorded at 303.34 million tonnes against a target of 301 million tonnes
• Gross Value Added (GVA) by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore in FY20.
• The share of agriculture and allied sectors in GVA of India at current prices stood at 17.8 % in FY20.
• Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.

Also read:  Agriculture export policy

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• Issues In News Agriculture In India

Agriculture in India - UPSC Current Affairs: Issues in News

Agriculture in India is an important topic from the civil services examination’s point of view. It comes under UPSC Mains GS 3. This article talks about various issues regarding Indian Agriculture. It will aspirants of the IAS Exam and other competitive examinations.

UPSC Current Affairs: Issues in News – Agriculture in India

• Farmers in several states have been agitating aggressively for some time now to waive off the three Farm Bills have been passed by the Government.
• Due to poor crop productivity and failing monsoons, several states like Uttar Pradesh, Maharashtra, Punjab, and Karnataka, (which account for around one-third of India’s population) have announced farm loan waivers.
• States like U.P and Punjab announced it in an election year. Thus, this issue has become socio-politically important. Further, this may lead to competitive populism and other states may also resort to such measures.

Learn about crops-related topics from the links below:

• The history of Agriculture in India dates back to Indus Valley Civilization and in some parts of Southern India, it was found to be practised even before the Harappans.
• Today, India ranks second worldwide in farm output. The economic contribution of agriculture to India’s GDP is steadily declining with the country’s broad-based economic growth, yet, having nearly 50% of the population dependent on it for livelihood.
• Agriculture, along with fisheries and forestry, is one of the largest contributors to the Gross Domestic Product (GDP) . As per the estimates by the Central Statistics Office (CSO), the share of agriculture and allied sectors (including agriculture, livestock, forestry, and fishery) is expected to be 17.3 percent of the Gross Value Added (GVA) during 2016-17 at 2011-12 prices.
• The Department of Agriculture and Cooperation under the Ministry of Agriculture is responsible for the development of the agriculture sector in India. It manages several other bodies, such as the National Dairy Development Board (NDDB), to develop other allied agricultural sectors.

Potential: Facts about Agriculture in India

• Horticultural crops occupy 10% of the gross cropped area and producing 160.75 m tones. The total production of fruits is 49.36 m tones and vegetables are at 93 m tones. (Read about Project CHAMAN that aims to support horticulture, in the linked article.)
• Animal husbandry output constitutes about 32% of the country’s agricultural output. The contribution of this sector to the total GDP during 2006-07 was 5.26%.
• India is the highest producer of milk and the second highest producer of fruits and vegetables.
• India accounts for 57% of the world’s buffalo population and 14% of cattle population.
• India holds 6th place with 7% world’s market share in medicinal and aromatic plants.

The Productivity of Agriculture in India

• Although India has attained self-sufficiency in food staples, the productivity of its farms is below that of Brazil, the United States, France, and other nations. Indian wheat farms, for example, produce about a third of the wheat per hectare per year compared to farms in France.
• Rice productivity in India was less than half that of China. Other staple’s productivity in India is similarly low.
• Indian total factor productivity growth remains below 2% per annum; in contrast, China’s total factor productivity growth is about 6% per annum, even though China also has smallholding farmers.
• Several studies suggest India could eradicate its hunger and malnutrition and be a major source of food for the world by achieving productivity comparable with other countries.

Infrastructure

Poor penetration of forward and backward linkages in Agriculture

Food processing units need to have strong backward linkages with the farmers, farmer producer organizations, self-help groups, farmer groups, etc. Further, to be able to sell its processed food, it needs to develop strong forward linkages with wholesalers, retailers, exporters, etc.

India has poor rural roads affecting the timely supply of inputs and timely transfer of outputs from farms. In other areas regional floods, poor seed quality and inefficient farming practices, lack of cold storage, and harvest spoilage cause over 30% of farmer’s produce going to waste, lack of organized retail, and competing buyers thereby limiting Indian farmer’s ability to sell the surplus and commercial crops.

Read about PM FME Scheme that is initiated to developed micro-food processing enterprises.

Agriculture Price Policy

• The agricultural price policy in India has succeeded in establishing certainty and confidence in respect of the prices of agricultural commodities through the fixation of minimum support prices by the Commission for Agricultural Costs and Prices (CACP) .
• But due to the variations in the degree of enforcement of procurement in different years, some degree of uncertainty and instability in prices were experienced by the Indian farmers.
• Again raising the minimum support prices (MSPs) and procurement prices offered incentives to the producers to increase their production but these benefits were mostly restricted to large farmers. Moreover, the public distribution system in India is also subjected to various limitations such as its restricted operation in wheat and rice only, insufficient coverage of rural areas, inadequate coverage of the people lying below the poverty line, and it’s too much expensiveness due to lack of targeting.
• As argued by several economists, a continuous increase in procurement prices has resulted in inflationary pressures in the economy. This increase in the price of food grains has also resulted in huge hardships to the rural poor consisting of marginal farmers and landless labourers who constitute the bulk of the rural population.

Other problems include

• Falling water levels, Expensive credit.
• A distorted market.
• Many intermediaries who increase cost but do not add much value.
• Laws that stifle private investment.
• Produce that does not meet international standards.
• Inappropriate research.
• Crop pattern.

Farmer Suicides

In 2012, the National Crime Records Bureau of India reported 13,754 farmer suicides. Farmer suicides account for 11.2% of all suicides in India. Activists and scholars have offered several conflicting reasons for farmer suicides, such as

• Monsoon failure, frequent El-Nino events, and draught have decreased production substantially.
• Less fund at their disposal, higher interest rate since many buy from local zamindars and landholders often result in the burgeoning effect of actual & interest money which in adverse cases sometimes take away their land and hence their livelihood.
• Farmers from rural areas have big families that are dependent on the small farmland which leads to economic burden. The dowry for daughters, farmers either offer their property or give away the land as dowry to the groom.
• Poor targeting of Subsidies mostly benefiting the rich creating a wide gap in earning profit.
• Local administration is often insensitive to the demands and requirements of farmers.
• Personal issues such as illness, alcohol addiction, stress, and family responsibilities.

Learn more about Farmer Suicides in India by referring to the linked article.

The farm credit system in Indian agriculture evolved over decades has been instrumental in enhancing the production and marketing of farm produce and stimulating capital formation in agriculture.

Credit for Indian agriculture has to expand at a faster rate than before because of the need to step-up agricultural growth to generate surplus for exports, and also because of change in the product mix towards animal husbandry, aquaculture, fish farming, horticulture and floriculture, medicinal plants, which will necessitate larger investments.

Why is it important?

• Agriculture Growth has decreased since 2011-12 to around 1%
• Input cost is increasing due to the rise in prices of seeds, fertilizers, etc.
• Distress migrations- causing a burden on destinations.
• Growth of unorganized credit sector- lack of access to organized sector lending, many farmers resort to the unorganized credit sector.
• The increasing attrition rate in agriculture
• Loan waivers provide some relief to farmers in such situations, but there are debates about the long-term effectiveness of the measure. Critics demand making agriculture sustainable by reducing inefficiencies, increasing income, reducing costs, and providing protection through insurance schemes.
• They point out that farm loan waivers are at best a temporary solution and entail a moral hazard — even those who can afford to pay may not, in the expectation of a waiver. Such measures can erode credit discipline and may make banks wary of lending to farmers in the future.
• It also makes a sharp dent in the finances of the government that finances the write-off.
• A blanket waiver scheme is detrimental to the development of credit markets. Repeated debt-waiver programmes distort households’ incentive structures, away from productive investments and towards unproductive consumption and wilful defaults.
• These wilful defaults, in turn, are likely to disrupt the functioning of the entire credit system.

The economic cost of farm loan waiver

• The loan waiver for small and marginal farmers will push up states’ fiscal deficit to 2.71% (Budgeted: 1.53%) in FY’18 of gross state domestic product (GSDP).
• The unintended outcome of this could be reduced availability of credit to the farmers from banks, forcing them to resort to the unorganized lending sector.
• It affects credit discipline and demand for debt waiver may also come in from other states as well.

Read in detail about Farm Loan Waiver in the linked article.

According to Parshuram Ray, director of the New Delhi-based Centre for Environment and Food Security, the loan waiver was “an electoral sop that involves a lot of statistical juggleries and very little of real hope for Indian farmers.”

An important feature of the program which has been heavily criticized is that it covers only formal sources of credit and excludes any kind of informal loan. Thus, while it benefitted wealthy and large-scale farmers who had access to institutional credit (about 23% of the total number of farmers), small and marginal farmers, who borrow the majority of their funds from private moneylenders, would not benefit from the scheme.

Another criticism of this scheme was that it might cripple the agricultural credit system.

Budget 2021

• In case of wheat, the total amount paid to farmers has gone from Rs. 33,874 crore in 2013-14 to Rs. 75,060 crore in 2020-21
• In case of Paddy, the amount paid to farmers in 2013-14 was Rs. 63,928 crore and that in 2020-21 is estimated as Rs. 172,752 crores
• In case of pulses, the amount paid in 2013-14 was Rs. 236 crores and now is at Rs.10, 530 crores in 2020-21
• SWAMITVA schemes has been extended to cover all the States and Union Territories
• To boost value addition in agriculture and allied products and their exports, Operation Green Scheme will be extended to 22 perishable products
• Agricultural credit target to get enhanced to Rs.16.5 crores in Financial Year 2022 with focus on credit flows to animal husbandry fisheries and dairy

Why Double Farmers’ Income?

• The past strategy for the development of the agriculture sector in India has focused primarily on raising agricultural output and improving food security.
• The net result has been a 45 percent increase in per person food production, which has made India not only food self-sufficient at the aggregate level, but also a net food exporting country.
• The strategy did not explicitly recognize the need to raise farmers’ income and did not mention any direct measure to promote farmers’ welfare.
• The net result has been that farmers’ income remained low, which is evident from the incidence of poverty among farm households.

Doubling the real income of farmers till 2022-23 over the base year of 2015-16 requires annual growth of 10.41 percent in farmer’s income. This implies that the on-going and previously achieved rate of growth in farm income has to be sharply accelerated. Therefore, strong measures will be needed to harness all possible sources of growth in farmers’ income within as well as outside the agriculture sector.

The major sources of growth operating within the agriculture sector are:

• Improvement in productivity
• Resource use efficiency or saving in cost of production
• Increase in cropping intensity
• Diversification towards high-value crops

The sources outside agriculture include:

• Shifting cultivators from farm to non-farm occupations, and
• Improvement in terms of trade for farmers or real prices received by farmers.

Read the Gist of Kurukshetra – October 2019 on Agricultural Reforms in the linked article.

The index ranks states based on their initiatives taken in implementing the provision of seven farm sector reforms. These reforms have been proposed under the model APMC Act, joining the e-NAM initiative, special treatment to fruits and vegetables for marketing, and level of taxes in mandis. States are ranked based on scores on the scale ranging from 0 to 100. The minimum score of 0 implies no reforms at all and a score of 100 means the state is friendliest to farmers. The index identifies three major parameters. They are:

• Reforms in agricultural marketing
• Forestry on private land.

Read about e-NAM in the linked article.

Pradhan Mantri Krishi Sinchai Yojana

The primary objectives of PMKSY are:

• To increase the area of agricultural lands covered by irrigation and reduce dependency on monsoon.
• To improve on-farm water use efficiency by adopting water management techniques adoption of precision-irrigation and other water-saving technologies to reduce wastage of water.
• Enhancing the recharge of aquifers and introducing sustainable water conservation practices.

Read in detail about Pradhan Mantri Krishi Sinchayee Yojana in the linked article.

National Agriculture Market

The Department of Agriculture & Cooperation formulated a  Central Sector Scheme for the Promotion of National Agriculture Market through  Agri-Tech Infrastructure Fund (ATIF)  through the provision of the common e-platform.

Implications / Benefits of various stakeholders:

• They can sell produce without the interference of any brokers or middlemen thereby making competitive returns out of their investment.
• Traders will be able to do secondary trading from one APMC to another one anywhere in India. Local traders can get access to larger national market for secondary trading.

Buyers, Processors & Exporters

• Buyers like large retailers, processors, or exporters will be able to source commodities from any mandi in India thereby reducing the inter-mediation cost. Their physical presence and dependence on intermediaries will not be needed.
• NAM will increase the number of traders and the competition among them increases. This translates into stable prices and availability to the consumers.

Read the objectives of National Agriculture Market (NAM) in the linked article.

Paramparagat Krishi Vikas Yojana

Paramparagat Krishi Vikas Yojana is an elaborated component of Soil Health Management (SHM) of 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.
• The produce will be pesticide residue free and will contribute to improving the health of the consumer.
• It will raise the farmer’s income and create a potential market for traders.
• It will motivate the farmers for natural resource mobilization for input production.

Pradhan Manthri Fasal Bima Yojana

The new Crop Insurance Scheme is in line with the One Nation – One Scheme theme.  It incorporates the best features of all previous schemes and at the same time, all previous shortcomings/weaknesses have been removed.

• To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
• To stabilize the income of farmers to ensure their continuance in farming.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure the flow of credit to the agriculture sector.

Read more about  PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) Scheme  in the linked article.

There a few Mechanisation

Mechanization has the potential to change many agricultural output challenges as it will lead to higher productivity and economic contribution. Yet, it has been inaccessible to farmers for a long time, largely due to economic reasons. With small land ownership and constant fragmentation, small and marginal farmers find it almost impossible to own a tractor. To make agriculture economically viable ICAR started many initiatives.

• It is working towards developing need-based and region-specific engineering technologies and is engaged in planning, coordination, and monitoring of R&D programs at a national and international level.
• It has developed many improved types of machinery such as laser and leveler, self-propelled sprayers, precision seeders and planters, harvesters for cereals and sugarcane, etc.
• It has introduced gender-friendly tools for the reduction in drudgery for women farmworkers.
• Lab to Land program recently set up of modern mechanized farm units.

The mega food park scheme

• The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors, and retailers to ensure maximizing value addition, minimizing wastage, increasing farmers’ income, and creating employment opportunities, particularly in the rural sector.
• The Mega Food Park Scheme is based on the “Cluster” approach and envisages a well-defined agree/ horticultural-processing zone containing state-of-the-art processing facilities with support infrastructure and a well-established supply chain.
• 9 Mega Food Parks namely Patanjali Food and Herbal Park, Haridwar, Srini Food Park, Chittoor, North East Mega Food Park, Nalbari, International Mega Food Park, Fazilka, Integrated Food Park, Tumkur, Jharkhand Mega Food Park, Ranchi, Indus Mega Food Park, Khargoan, Jangipur Bengal Mega Food Park, Murshidabad, and MITS Mega Food Park Pvt Ltd, Rayagada are functional as on 30.06.2017.

Know in detail about the Mega Food Park Scheme in the linked article.

Cold Storage

India is the largest producer of fruits and the second-largest producer of vegetables in the world. Despite that per capita availability of fruits and vegetables is quite low because of post-harvest losses which account for about 25% to 30% of production. The Task Force on cold-chain development in India had suggested in its report to establish a National Centre for Cold-chain Development (NCCD) in India as an autonomous center for excellence to be established as a registered society to work in close collaboration with industry and other stakeholders to promote and develop integrated cold-chain in India for perishable F&V and other perishable allied Agri – commodities to reduce wastages and improve the gains to farmers and consumers substantially.

Food processing and Safety

Food processing levels are quite low in India at 3% when compared to 30-70% in developed countries and wastage of agriculture produce is as high as 40%. National Food Processing Mission was launched to address these problems and create the potential for higher revenues. The objectives of the program are:

Promote Primary processing centers close to the farms and link them with Clusters through the hub and spoke models.

Facilitate exports of high-value products like Cheese, Peanut butter, etc. and encourage such facilities through subsidies.

Develop food processing clusters, Food parks, and Agriculture SEZs ; Contract farming, Warehouses (Cold chains) development was also given an important role by providing tax rebates. This scheme has resulted in some positive outcomes like

• Exports from Agriculture SEZs have increased over the years.
• Exports of Meat, Marine products have improved.

But the performance of this scheme, on the whole, has left us much to be desired with warehouses, processing facilities have not been developed.

In the absence of APMC reforms, contract farming and private procurement are virtually absent.

Crop pattern

• Record productions of sugarcane, groundnuts, and vegetables were seen but wastage was higher as export opportunities shrink.
• Indian farming suffers from excess cropping of water-intensive crops like sugarcanes in dry areas. This is one of the reasons for agricultural and farm distress. The high dependency on Monsoon adds to worry.
• The recent initiative from the government which has emphasized crop diversification and climate-appropriate agriculture and cropping are helping the shift from the switch to value-added and less water-intensive crops.

Model Land Leasing Law

Taking note of increasing incidents of leasing in and out of the land and suboptimal use of land with a lesser number of cultivators, NITI Aayog has formulated a Model Agricultural Land Leasing Act, 2016 to both recognize the rights of the tenant and safeguard the interest of landowners. A dedicated cell for land reforms was also set up in NITI.

Soil Health Card

The campaign to provide soil health cards with nutrient information of soil would help the farmers to educate about the most viable and appropriate cropping pattern suiting the climatic conditions in the region. Shortage of infrastructure like soil testing labs is hindrances but it‘s a move in the right direction.

Read about Soil Health Card Scheme in the linked article.

Higher MSP increase in Pulses and Oil Seeds

From the last two years, the MSP has tried to address the issues of higher MSP in cereal and lower in Pulses and oilseed. The recent move to increase pulses MSP by 7% in the move towards the Crop-neutral MSP regime.

• Two National Kamdhenu Breeding Centersopened in the country, one in the North and one in the South.
• National Gokul Mission started for the development and conservation of indigenous cattle breeds.
• Blue Revolution was initiated to increase fisheries production.
• Coverage under National Livestock Mission  extended to the entire country.

New schemes such as Mera Gaon Mera Garv, Mission 2050, Farmers First, and Student Ready started in 2015. Krishi Vigyan Kendras (KVKs) is the frontline agricultural extension center funded by the Indian Council of Agricultural Research (ICAR). The KVKs focus on training and education of farmers, rural youth, on-field demonstration of new and improved farming techniques, etc.  The web-based ‘Farmers Portal’ and mobile-based ‘mKisan’ SMS portal along with two mobile Apps (‘Kisan Suvidha’ & ‘Pusa Krishi’) have been launched. Information is also being disseminated through the ‘Kissan Call Centre’ and ‘DD Kisan Channel’.

Also, read: National Agricultural Education Policy

Irrigation: Per Drop More Crop

• India also has much less per capita water as compared to other leading agrarian countries. This problem is exacerbated because India has been exporting virtual water embedded in crops, which is marked by its feature of non-replenishment.
• Once it is exported, it cannot be recovered. Given this scenario, it is time to make a shift to micro-irrigation so that the efficient and judicious use of scarce water resources can be made.
• High initial costs deter farmers to adopt this technology. While big farmers can easily avail of this technology, the government should consider giving subsidies to small farmers to boost the adoption of this technology.

Second green revolution

• India needs a  second green revolution to bring food security to its billion-plus population, to remove the distress of the farming community, and to make its agriculture globally competitive.
• To achieve these goals, yield rates of food grains, pulses, oilseeds, dairying and poultry, horticultural crops, and vegetables need to be enhanced; and forward-backward linkages of agriculture with technology, food processing industry needs to be strengthened to match soil to seed, and product to market.
• High productivity and better value addition by agro-processing are its key parameters.

Get more information on Agricultural Revolutions in India from the linked article.

R&D is the future

• India spent 31% of its agricultural GDP on research and development in 2010, in the same year China spent almost double that amount. Even our neighbour Bangladesh spent 38% of its agricultural GDP on research and development in that year.
• As a result of this resource crunch, there has not been a diffusion of new agricultural innovations and practices that are critical for enhancing farm productivity.
• As the  Economic Survey notes, even in states where agriculture is relatively more important (as measured by their share of agriculture in state GDP, agriculture education is especially weak if measured by the number of students enrolled in agricultural universities.
• There has also not been any major contribution from the private sector towards research and development. The government should thus woo private players by giving them incentives to play a major role in agricultural research and development.
• ‘More from less’ should be the aim of agriculture because rapid industrialization and climate change have raised the scarcity value of land and water.
• Indian agriculture is the victim of the Green Revolution’s success. It has become cereal-centric, regionally-biased, and resource-intensive. A rainbow revolution must follow the green and white revolutions.
• Genetically modified crop technologies have ‘significant net benefits.’ Evolved regulation is needed to allay public fears so they can be deployed.
• Pulses and oilseeds must be supported with procurement and support prices that reflect their social contribution – less water use and enrichment of soil with atmospheric nitrogen.
• Advancements in Seed Technology – New varieties need to be tested and seeds of these varieties should be made available to the farmers for cultivation in the regions in which it is suitable.
• Regulatory measures for quality seed production have to be tightened to discourage the sale of spurious seeds to the farmers.
• Subsidies on power must end to curb water wastage. Cheap power makes India a net exporter of water through commodities like cotton, sugar, and soybean, while China is a net importer of water through soybean, cotton, meat, and grains.
• Agricultural research has the biggest impact on yield and profitability but it is weak in states where agriculture is relatively more important (eastern and northern states, except Punjab and Haryana).
• The private sector must be enticed into pulses research (which it has shunned) by offering a ‘disproportionately large enough award’ to the winner for innovating in desirable traits, but the intellectual property rights must vest with the government. There should be equal treatment of the private, public, and citizen sectors in this respect.

The recent initiatives taken by the Government are steps taken in the right direction. The agreements signed between India and Israel further underscore the fact of how water management and judicious usage of limited resources is vital for a thriving agricultural sector.

• Recent developments further underscore the fact that India urgently needs to diversify its cropping pattern- this will help conserve moisture and thus help in judicious usage of resources. Efforts described above can further the objective of the Government of doubling farmer’s income by the year 2022.
• Such an effort would involve the collective participation of various stakeholders, including the wider farming community, pressure groups, private sector, banking sector, and both the central and state governments.

Also, read: Kisan Sarathi App

• Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
• Major crops cropping patterns in various parts of the country, different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers
• Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.
• Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.
• Land reforms in India.
• Values- empathy in administration
• Farm suicides- Possible case study
• What are the impediments in marketing and supply chain management in developing the food processing industry in India? Can e-commerce help in overcoming these bottlenecks? (250 words)
• Critically discuss the ethical aspects of farmer suicides in India. (250 words)
• Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India. (250 words)

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Agriculture in India

India is a global agricultural powerhouse. It is the world’s largest producer of milk, pulses, and spices, and has the world’s largest cattle herd (buffaloes), as well as the largest area under wheat, rice and cotton. It manages to handle 65% rainfed area effectively. 

It is the second largest producer of rice, wheat, cotton, sugarcane, farmed fish, sheep & goat meat, fruit, vegetables and tea. 

Major Crops and Cropping Pattern in India

India is a country with an agrarian economy, with over 54% of the country’s land classified as arable and agriculture industry comprising half of labour market. India's climate varies from humid and dry tropical in the south to temperate alpine in the northern reaches. This diverse climate supports a variety of crops. 

Major crops in India 

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UPSC NCERT Notes – Indian Economy – Agriculture

As a UPSC aspirant, navigating the vast expanse of knowledge required for the exam can be daunting. However, with the right resources, such as UPSC NCERT notes on the Indian Economy focusing on Agriculture, the journey becomes more manageable and fruitful. Agriculture forms the backbone of India’s economy, employing a significant portion of its population and contributing substantially to its GDP. Understanding the intricacies of agricultural policies, practices, and challenges is indispensable for aspirants aiming to excel in the UPSC examination. These NCERT notes serve as a comprehensive guide, distilling complex economic concepts into digestible nuggets of information, thus aiding aspirants in mastering this crucial aspect of the syllabus. From the Green Revolution to contemporary issues like sustainable farming practices and agrarian distress, these notes provide a structured framework for aspirants to delve deep into the dynamics of Indian agriculture, enabling them to approach the UPSC examination with confidence and competence.

Table of Contents

The Role of Agriculture in the Indian Economy:

• Agriculture encompasses farming, soil cultivation, crop cultivation, and animal husbandry for food, wool, and various products. It holds the position of the primary industry in India, covering almost 43% of the country’s geographical area. Additionally, over 58% of rural households rely on agriculture as their main livelihood.
• Despite a consistent annual growth rate of 4.6% over the past six years, the agricultural growth rate dipped to 3% in 2021-22 from 3.3% in the previous fiscal year, as reported by the Economic Survey 2022-23. The contribution of agriculture to GDP saw fluctuations, rising to 19.9% in 2020-21 and 19% in 2021-22, before declining to 18.3% in 2022-23, as per the same report.

Noteworthy Aspects of the Indian Agricultural Sector:

The Indian agricultural sector boasts several features:

• Largest Employment Provider: Serving as the most significant source of employment, agriculture in India engages more than 90% of the total unorganized labor force, solidifying its status as the largest employment provider in the country.
• Foundation for Industrial Advancement: Agriculture serves as the primary source of raw materials, such as cotton, sugarcane, and oilseeds, essential for various industries, including textiles, sugar, and oil-processing. Industries producing capital goods, like tractors, thrashers, and harvesters, rely directly on the agricultural sector for their inputs.
• Promoting Tertiary Sector Development: The tertiary sector provides essential services to both industries and agriculture, encompassing crucial elements such as banking and warehousing.
• Internal Trade Dynamics: Internal trade predominantly revolves around agricultural produce, with various modes of transportation heavily reliant on the movement of agricultural goods. This sector also plays a pivotal role in international trade, with notable exports like jute, tea, coffee, and spices, while fertilizers, harvesters, and thrashers stand out as significant import items specifically catering to the agricultural sector.
• Global Significance: India holds a prominent position on the international stage as the largest producer of coconuts, mangoes, bananas, milk, dairy products, cashew nuts, pulses, ginger, turmeric, and black pepper. Additionally, it ranks as the second-largest producer of rice, wheat, sugar, cotton, fruits, and vegetables.

Five-Year Plans and Agriculture

Agricultural Growth from 2017-18 to 2022-23

Over the past six years, India’s agriculture sector has demonstrated robust growth, maintaining an average annual growth rate of 4.6%.

Agricultural Inputs and Practices

• Agricultural Inputs play a pivotal role in determining yield levels and long-term production augmentation.
• The enhancement of yield relies on the application of technology and the use of quality seeds, fertilizers, pesticides, micro-nutrients, and irrigation. These inputs are categorized into:

Natural Farming:

• Aims to eliminate the usage of chemical fertilizers and pesticides, promoting good agronomic practices.
• Focuses on sustainable agriculture production through eco-friendly processes, producing chemical-free agricultural produce.
• Restores soil fertility and organic matter, requiring less water and being climate-friendly.
• Promoted through the Bharatiya Prakritik Krishi Paddhati Programme (BPKP) , offering financial assistance for cluster formation, capacity building, handholding, certification, and residue analysis.

Organic Farming:

• Relies on techniques like crop rotation, green manure compost, and biological pest control.
• Objectives include capacity building, financial and technical support, human resource development, awareness creation, market development, quality control of organic inputs, and biological assessment of soil health.

Seeds (National Seeds Policy, 2002):

• Seeds are crucial for sustained agriculture growth.
• More than four-fifths of Indian farmers use farm-saved seeds, resulting in a low seed replacement rate.
• Various government programs address this issue, involving Central and State Governments, ICAR, state agricultural universities, co-operatives, the private sector, farmers, and plant breeders.
• The PPV and FR Act, 2001, implemented by the PPV and FRs authority, focuses on plant varieties and farmers’ rights within the context of the World Trade Organisation’s Sui Generis System.

WTO Efforts and Agricultural Inputs

• To thwart multinational corporations’ attempts to dominate the seed market through patents and the acquisition of small seed growers, India has embraced the Sui Generis System within the framework of the TRIPS Agreement.
• Under the Sui Generis System , farmers retain the right to save, use, exchange, share, or sell farm produce, including seeds. However, the sale of branded seeds by farmers is restricted.

Seed Bank Initiative

• Since 1999-2000, a scheme for establishing and maintaining seed banks has been in operation. 
• The primary objectives include ensuring the availability of seeds for unforeseen needs and developing infrastructure for seed production and distribution. Implementation is carried out through the National Seed Corporation of India and 12 State Seeds Corporations.

Seed Subsidy

• Seed subsidy involves distributing quality seeds at prices below the market rate. This encourages intensive cultivation by making fertilizers affordable for farmers. India, the world’s third-largest consumer of fertilizers, meets 85% of its urea requirement through domestic production but heavily relies on imports for phosphatic and potash fertilizers.

Fertilizer Subsidy

• The Union Government bears the fertilizer subsidy , aimed at providing affordable fertilizers to farmers and attracting investment to the domestic fertilizer industry. The Nutrient Based Subsidy Scheme, implemented since 2010, offers a fixed subsidy per kg of nutrient annually, with additional subsidies for micro-nutrients. Urea prices, however, remain under statutory price control.
• The New Urea Policy, initiated in 2015, focuses on maximizing indigenous urea production, promoting energy efficiency, and rationalizing government subsidy.

Retention Price Scheme (RPS)

• RPS fixes selling prices for fertilizers by the government, along with retention prices for producers. The government compensates producers for the difference between the higher retention price and the lower selling price.

Irrigation Support

• Recognizing irrigation’s critical role in enhancing productivity, the Government of India invests in irrigation potential creation through public funding. Additionally, farmers receive assistance to develop irrigation potential on their own farms. The total irrigation potential in the country has risen from 81.1 million hectares in 1991-92 to about 139.9 million hectares in 2018-19.

Sprinkler Irrigation:

• Sprinkler irrigation involves pressurized water sprinkled onto crops through nozzles attached to a network of pipes, mimicking natural rainfall. This system is movable, making it suitable for high-density horticultural crops . Unlike drip systems, a single sprinkler set can cover multiple hectares by shifting locations.

Drip Irrigation:

• Also known as trickle or micro-irrigation, drip irrigation conserves water and fertilizer by allowing water to drip slowly onto plant roots. It employs emitters on a network of pipes, including drippers, micro sprinklers, mini sprinklers, micro jets, misters, fan jets, micro sprayers, and forgers.

Accelerated Irrigation Benefit Programme (AIBP):

• Launched in 1996-97, the AIBP accelerates assistance for completing incomplete irrigation schemes. Projects approved by NITI Aayog are eligible for support, with periodic monitoring by the Central Water Commission.
• A Central Government-sponsored watershed development project, Hariyali aims to conserve water for drinking, irrigation, fisheries, and afforestation.

Micro Irrigation and National Mission on Micro Irrigation (NMMI):

• Initiated in January 2006, NMMI promotes water-use efficiency through drip and sprinkler irrigation. It covers all States, Union Territories, and horticultural and agricultural crops. The National Committee on Plasticulture Applications in Horticulture provides technical guidance, enhancing water use efficiency and allowing for fertiliser application.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY):

• Launched in 2015, PMKSY aims to converge investments in irrigation, expand cultivable areas with assured irrigation, improve on-farm water use efficiency, and adopt precision irrigation and water-saving technologies.

Neeranchal Watershed Yojana:

• Implemented by th e Union Ministry of Rural Development from 2016-21 , this project supports PMKSY objectives, focusing on hydrology, water management, agricultural production systems, capacity building, and monitoring and evaluation.

Rainfed Area Development Programme (RADP):

• Launched as a Pilot Scheme in 2011-12 under RKVY, RADP targets small and marginal farmers in rainfed areas. It adopts a holistic approach, covering integrated farming, on-farm water management, storage, marketing, and value addition to enhance farmers’ income.

National Rainfed Area Authority (NRAA):

• Established on November 3, 2006, the National Rainfed Area Authority (NRAA) serves as an expert body, offering essential knowledge for the systematic enhancement and management of the country’s dry land and rainfed agriculture.
• Comprising a two-tier structure, the governing board at the first tier provides leadership and coordination, while the second tier, the Executive Committee , consists of technical experts and representatives from stakeholder ministries.

Power and Irrigation Subsidies:

• Given that water and electricity fall within the state domain, State Governments administer power and irrigation subsidies. Irrigation subsidies are incurred due to the pricing of irrigation water provided to farmers by State Governments. 
• The consequences of these subsidies include an increased fiscal burden, reduced revenue for investment in irrigation and large-scale projects, over-exploitation of groundwater resources, and inefficient use of irrigation water leading to waterlogging and salinity.

National Horticulture Mission (NHM):

• Launched in 2005-06, the NHM aims for holistic horticulture sector development, fostering forward and backward linkages with active stakeholder participation. Covering 18 States, three Union Territories , and 372 districts, the mission seeks comprehensive horticultural advancement.

National Bamboo Mission (NBM):

• Initiated in 2006-07, the NBM, a Centrally Sponsored Scheme, harnesses the potential of bamboo crops across 27 states with a total outlay of 568.23 crore, including a budget allocation of 1200 crore in 2018-19.

Horticulture Mission for North-East and Himalayan States (HMNEH):

• The HMNEH , formerly the technology mission for North-Eastern states including Sikkim, aims at holistic development for all horticultural crops. Its primary objective is to establish nurseries for the production and distribution of quality planting materials.
• The first Grain dispensing ATM in India was installed in Farrukhnagar, Gurugram district, Haryana, on July 15, 2021. This innovative project aims to simplify and streamline ration dispersal for citizens and is implemented under the World Food Programme of the United Nations.

Challenges of Indian Agriculture:

• Numerous challenges plague Indian agriculture, including over-dependence on unreliable rain, insufficient irrigation facilities, poverty, illiteracy hindering scientific cultivation methods, lack of finance, soil erosion, inadequate irrigation facilities, poor water resource management, lack of a coherent marketing system, and challenges with crop residue management in regions like Haryana, Punjab, Uttar Pradesh, and Delhi

Land Reforms

• The land reforms program, designed to achieve social equity and economic growth, focused on three major issues:
• abolition of intermediaries, settlement and regulation of tenancy, and regulation of the size of holdings.
• Post-independence, various measures were taken, including the abolition of the Zamindari system , granting ownership or occupancy rights to actual cultivators, and reforms in the tenancy system through legislative measures in different states. Additionally, landholdings were subject to a ceiling, with approximately 1633 lakh hectares consolidated by 2004. 
• Co-operative farming was introduced, and the Bhoodan Movemen t by Acharya Vinoba Bhave aimed to improve conditions for landless farmers.
• Less than 1 hectare: Marginal Holding
• 1-2 hectares: Small Holding
• 2-4 hectares: Semi-medium Holding
• 4-10 hectares: Medium Holding
• More than 10 hectares: Large Holding

The National Land Records Modernisation Programme (NLRMP)

• The National Land Records Modernisation Programme (NLRMP) was implemented by the Government of India in 2008, merging the Computerisation of Land Records (CLR) and Strengthening of Revenue Administration and Updating of Land Records (SRA and ULR) schemes. The integrated program aims to modernize land record management, reduce land disputes, enhance transparency, and eventually move towards guaranteed conclusive titles for immovable properties.

The Digital India Land Records

• The Digital India Land Records Modernisation Programme (DILRMP), launched in August 2008, focuses on computerizing all land records, including mutations, improving transparency, digitizing maps and surveys, updating settlement records, and minimizing the scope of land disputes. The objective is to make land records accessible to all and prevent property fraud.
• Digitization aims to provide transparent land ownership titles, easily monitored by government officials, expediting transactions, reducing construction timelines, and lowering overall development costs. These benefits can be passed on to consumers, making property prices more appealing.

Model Agricultural Land Leasing Act, 2016:

• The NITI Aayog introduced the Model Agricultural Land Leasing Act, 2016, establishing an Expert Committee on Land Leasing led by T Haque to review existing agricultural tenancy laws. 
• The Model Act facilitates the leasing of agricultural land to improve access for landless and marginal farmers, recognizing farmers on leased land for institutional credit. 
• The Act aims to legalize land leasing to enhance agricultural efficiency and equity, addressing both productivity and occupational mobility.

Precision Farming:

• Also known as satellite farming, precision farming utilizes satellite technology, information technology, and GIS systems to enhance crop management. 
• It observes and responds to intra-field variations, aligning farming practices with crop needs, reducing ecological impact, and promoting competitiveness through efficient practices like improved fertilizer management.

Agricultural Revolution:

• The Green Revolution in India, post-1965, involved high-yielding seed varieties, increased fertilizer and irrigation use, making India self-sufficient in foodgrains. The approach included expanding farming areas, double-cropping existing farmland, and using seeds with improved yields. Drawbacks included environmental and health impacts, soil nutrient depletion, water resource depletion, and higher input costs.

Bringing Green Revolution in Eastern India Programme (BGREI):

• Launched in 2010-11 as part of the Rashtriya Krishi Vikas Yojana, BGREI aimed at the Eastern region, focusing on resource allocation and utilization. It resulted in a robust increase in foodgrain production, with an estimated growth rate of 11.99% during 2011-12, surpassing the overall country growth rate of 2.2%. States like West Bengal, Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, and Eastern Uttar Pradesh benefited from BGREI.
• Considering past experiences and performance in the 12th Five Year Plan, it was decided to continue the centrally sponsored scheme of BGREI beyond the Twelfth Plan, i.e., from 2015-16 to 2019-20.
• The agricultural sector faces challenges such as land constraints due to diversion for other economic purposes, climate change, the shift of crops to bio-diesel, and the fragmentation of land holdings, rendering farming economically unviable. To address these issues and ensure the nation’s food security, a Second Green Revolution is essential.

Second Green Revolution in India:

• Increasing crop yields in Eastern states.
• Promoting organic farming and contract farming.
• Amending the Agricultural Produce Marketing Committee (APMC) Acts.
• Investing in research to drought-proof crops and tackle climate change.
• Investing in supply chain and cold chains.
• Encouraging private investments through tax law amendments.
• Utilizing plant breeding and biotechnology.
• Implementing rainwater harvesting and watershed development.
• Improving credit availability.
• Enhancing soil quality and reclaiming degraded land.

Some Other Revolutions

Zero Budget Natural Farming (ZBNF)

• Jeevamrutha: This involves the use of a fermented microbial culture that acts as a catalytic agent, providing nutrients to the soil and enhancing the activity of micro-organisms.
• Beejamrutha : A treatment applied to seeds, seedlings, or planting material, Beejamrutha helps protect young roots from fungal infections.
• Acchadana (Mulching): This technique safeguards the topsoil during cultivation without tilling, promoting aeration and preventing soil destruction.
• Whapasa (Moisture): Whapasa refers to the ideal condition where the soil contains both air and water molecules, ensuring a balanced and conducive environment for plant growth.

Agriculture Policy and Commission

• The Government of India implements an agricultural pricing policy and procurement program to ensure fair returns for farmers. The procurement program is vital for the functioning of the Public Distribution System (PDS).

National Agricultural Commission

Established in 2004 under the leadership of Dr. MS Swaminathan, the National Agricultural Commission proposed an Agricultural Renewal Plan with five key components:

• Soil health enhancement, with a special focus on dry farming.
• Augmentation and demand management of irrigation water supply.
• Credit and insurance facilities, including the creation of an Agriculture Risk Fund.
• Technological reforms, integrating production and post-harvest technologies, developing a cadre of rural farm science managers, and conducting lab-to-land demonstrations.
• Assured and remunerative marketing.

National Agriculture Policy, 2007

The Government of India approved the National Agriculture Policy for Farmers in 2007, featuring the following main points:

• Emphasis on the economic well-being of farmers, alongside production and productivity.
• Encouragement of new technologies like biotechnology, space-based technology, and communication technology in agriculture.
• Availability of financial services for timely, adequate, and easy reach to farmers.
• Establishment of Gram Chaupals in every village to promote farmer-to-farmer learning.
• Effective implementation of Minimum Support Prices (MSP) across the country to ensure remunerative prices for agricultural products.
• Enlargement of the food security basket to include nutritious millets like jowar, bajra, ragi, and other millets mainly grown in dryland farming.

Price Policy of Agriculture

• Minimum Support Prices (MSP): These guarantee that prices paid to farmers cannot be lower than the MSP.
• Procurement Prices: These are higher than the MSP and represent the prices at which the government buys from farmers. In recent years, the government has announced continuous procurement to enable farmers to sell to the government at procurement prices.
• Central Issues Prices (CIP) Central Issues Prices (CIP) represent the rates at which the government supplies produce to fair price shops and ration depots. Wheat and rice are distributed to State Governments/UTs at CIP for Public Distribution System (PDS). States have the option to offer additional subsidies, reducing prices below the CIP.
• Price Support through MSP Price support through Minimum Support Price (MSP) and procurement prices is limited to specific crops, leading to changes in the country’s cropping pattern. Crops like rice and wheat, with increased MSP, witness a shift in cultivation, benefiting farmers in states where these crops are prominent.
• Currently, the Commission for Agricultural Costs and Prices (CACP) recommends MSPs for 23 commodities, including 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops.

Food Security

• The World Food Summit of 1996 defined food security as the state where everyone has access to sufficient, safe, and nutritious food for an active and healthy life. India’s food security initiatives, including the Public Distribution System (PDS) and the National Food Security Act, 2013, aim to address these challenges.

Public Distribution System (PDS)

• Operated jointly by the Central and State Governments, PDS involves procurement, storage, transportation, and allocation of foodgrains. The Central Government, through FCI, manages bulk allocation, while operational responsibilities within states, identification of below-poverty-line families, and fair price shop supervision rest with State Governments.
• Commodities like wheat, rice, sugar, and kerosene are distributed, and some States/UTs include additional items. Targeted Public Distribution System (TPDS) was introduced in June 1997, and alternatives include Universal PDS, Food Coupons, and Direct Benefit Transfer (DBT).

Revamped Public Distribution System (RPDS)

• Launched in June 1992, RPDS aimed to strengthen and streamline PDS, especially in remote areas. It introduced an area approach, doorstep delivery, additional ration cards, and expanded commodities like tea, salt, pulses, and soap for distribution through PDS outlets.

Targeted Public Distribution System (TPDS)

• The previous operation of TPDS faced widespread criticism for not effectively serving the population below the poverty line. In response to the recommendations from the Chief Ministers Conference in July 1996 , an effort was made to revamp the Public Distribution System, leading to the introduction of TPDS in June 1997.
• TPDS employs a two-tier subsidized pricing structure for families—Below Poverty Line (BPL) and Above Poverty Line (APL). States identify the poor based on state-wise poverty estimates from the Planning Commission. To enhance focus on the poor, the Antyodaya Anna Yojana was launched in December 2000 , aiming to identify 10 million poor families and provide them with 25 kg of foodgrains per family per month at a low price.

Fortification of Rice and its Distribution

• The Centrally Sponsored Pilot Scheme Fortification of Rice and its Distribution under the Public Distribution System was approved by the Government of India on February 14, 2019, for three years starting 2019-20. Implemented in 15 districts across 11 states, the scheme aims to distribute fortified rice in the identified districts.

National Food Security Act (NFSA), 2013

• NFSA stands as a significant intervention in global food security. Encompassing the entire nation, the Act ensures that priority households receive 5 kgs of food grains per person per month, and Antyodaya households receive 35 kgs per household per month. The combined coverage extends to 75% of the rural population and 50% of the urban population.
• PDS issue prices are set at 3/2/11 per kg for rice/wheat/millets, subject to revision after three years. The Act addresses various age groups, providing meals for children, free mid-day meals for school-going children, and support for pregnant and lactating mothers.
• The Act lacks specific criteria for identifying eligible households, leaving it to the Central Government to determine state-wise coverage. State food commissions monitor implementation, ensuring a grievance redressal mechanism and transparency through social audits and technology use.

International Fund for Agricultural Development

• The International Fund for Agricultural Development (IFAD) is a specialized UN agency and international financial institution headquartered in Rome, serving as the UN’s food and agricultural hub.

International Fund for Agricultural Development (IFAD)

• IFAD represents a distinctive collaboration involving 165 members from the Organisation of the Petroleum Exporting Countries (OPEC), other developing nations, and the Organisation for Economic Co-operation and Development (OECD). It serves as a robust global platform for discussing rural policy matters and raising awareness about the crucial role of investing in agricultural and rural development to alleviate poverty and enhance food security.

Storage Capacity and Constraints

Three public-sector agencies play a pivotal role in constructing extensive storage and warehousing capacity:

Food Corporation of India (FCI)

• Central Warehousing Corporation (CWC)
• 17 States Warehousing Corporations (SWCs)
• While FCI primarily utilizes its capacity for storing foodgrains, CWC and SWCs accommodate storage for both foodgrains and various other commodities.

Food Processing Industry (FPI)

• India holds the position of the world’s second-largest producer of fruits and vegetables, following China. The Indian food sector ranks fifth globally, contributing approximately 6% to GDP, 13% to Indian exports, and 6% to the overall industrial investment in the country.
• Over the past five years until 2022, the Food Processing Industries (FPI) sector has displayed an average annual growth rate of approximately 11.18%. It offers employment to seven million people, accounting for 32% of India’s food market share and 10.4% of the country’s total exports.
• The expected output of the food processing sector in India is projected to reach $535 billion by 2025-26. The industry is categorized into sectors such as dairy, meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds, alcoholic and non-alcoholic beverages, and packaged foods. Although the classification is not distinct, many processed products span different segments.
• In FPI, 100% Foreign Direct Investment (FDI) is permitted under the automatic route. However, for trading food products manufactured and produced in India, including through e-commerce, 100% FDI is allowed under the government approval route.
• Established in 1965, the Food Corporation of India (FCI) has the primary responsibility of purchasing, storing, transporting, distributing, and selling food grains and other foodstuffs.
• It also manages buffer stocks of foodgrains on behalf of the government and serves as the exclusive repository for foodgrains meant for the Public Distribution System (PDS).

National Mission on Food Processing (NMFP)

• Launched under the 12th Plan, NMFP facilitates the decentralized implementation of various schemes under the Ministry of Food Processing with state government collaboration.
• Key schemes include technology upgradation of food processing industries, cold chain facilities for non-horticultural produces, modernization of abattoirs, primary processing centers/collection centers in rural areas, and upgrading the quality of street food.

National Food Processing Development Council (NFPDC)

• NFPDC is established to offer guidance on all Ministry of Food Processing schemes, including NMFP. Its composition includes the Agriculture Minister as Chairman, representatives of state governments, industry associations, and relevant government officials.

Prime Minister-Formalisation of Micro Food Processing Enterprises (PM-FME)

• As part of the Atmanirbhar Bharat Mission, the Ministry of Food Processing Industries (MoFPI) introduced the Prime Minister-Formalisation of Micro Food Processing Enterprises (PM-FME) scheme. With a total outlay of ₹10,000 crore for the period 2020-2025, the scheme grants One District One Product (ODOP) status to 137 unique products across 710 districts in 35 States/UTs.

Agricultural Marketing and Extension Services

• The country encourages the organized marketing of agricultural commodities through a network of regulated markets. 
• Most states and Union Territories have enacted legislation, the Agriculture Produce Marketing Committee (APMC) Act, to regulate agricultural produce markets.
• Seventeen states or UTs have amended their APMC Acts, with the remaining in the process of doing so. India has 2,477 principal regulated primary agricultural markets, governed by APMC Acts and administered by separate Agricultural Produce Marketing Committees (APMCs), hindering the free flow of agricultural commodities.

e-National Agriculture Market (NAM)

• Launched on April 14, 2016, the National Agriculture Market (NAM) is a pan-India electronic trading portal for farm produce, integrating existing Agriculture Produce Market Committee (APMC) markets. 
• This portal provides a single-window service for all APMC-related services and information, facilitating trade offers, commodity arrivals, prices, and other services.

e-Rakam (e-Rashtriya Kisan Agri Mand)

• The Union Government introduced the e-Rakam web portal to serve as a single digital platform for small and large farmers to sell and buy agricultural products in the global market. Payments for farmers are conducted through digital means, directly to their bank accounts.

National Agricultural Market Yojana

• The National Agricultural Market Yojana aims to create a common national market for agricultural commodities through an e-platform network. Launched as part of NAM, the national e-agriculture market integrates various vegetable markets across the country.
• Kisan Call Centre Scheme Launched in 2004, the Kisan Call Centre Scheme provides agricultural information to the farming community through toll-free telephone lines. A country-wide common 11-digit number, 1800-180-1551, has been allocated for Kisan Call Centres.
• Agri-clinic and Agri-business Centres Scheme Introduced in 2002, the Agri-clinic and Agri-business Centres Scheme provides extension services to farmers on a payment basis by establishing economically viable self-employment ventures. NABARD monitors the credit support to Agri-clinics through Commercial Banks.

Government Schemes Related to Agriculture

• Other major schemes related to agriculture include the SVAMITVA Scheme , launched in 2020, which focuses on providing rural residents with property documentation rights for economic purposes.
• Land parcel surveys will be conducted across the country as part of the proposed Central Scheme for the period 2020-2025. The pilot phase (FY 2020-21) has a projected outlay of ₹79.65 crores to cover all 6.62 lakh villages.

Green Revolution-Krishonnati Yojana

• Introduced in 2005, the Green Revolution Krishonnati Yojana aims to boost the agriculture sector. 
• The scheme, encompassing 11 schemes and missions under a single umbrella, focuses on holistic and scientific development of the agriculture and allied sectors to increase farmer income. It strives to enhance agricultural production, productivity, and returns on produce.

National e-Governance Plan (NeGP-A)

• Key aims of the NeGP-A scheme include the improvement of the agricultural base, doubling farmers’ earnings, creating appropriate agricultural infrastructure, and ensuring an adequate market for the sale of produce.

Pradhan Mantri Kisan Maan Dhan Yojana

• Launched on September 12, 2019, the PM-KMY scheme is a Central Sector Scheme for farmers aged between 18 to 40 years. Farmers can become members by registering under the Pension Fund managed by LIC. Members contribute monthly to the Pension Fund, with the Central Government providing an equal contribution. The scheme is applicable to small and marginal farmers.

PM Kisan Samman Nidhi Yojana

• Implemented in 2018, the PM Kisan Samman Nidhi Yojana aims to augment the income of farm families. It provides financial assistance to small and marginal farmers for purchasing seeds, fertilizers, etc. 
• The scheme transfers funds directly to farmers’ bank accounts in three equal installments every four months.

KUSUM Scheme

• The Union Government has announced the Kisan Urja Suraksha evam Utthan Mahaabhiyan (KUSUM) scheme, with an allocation of ₹1.4 lakh crore for decentralized solar power production of up to 28,250 MW to assist farmers. The scheme includes a 60% subsidy on solar pumps, shared between the Centre and States, with 30% provided through bank loans, and the remaining cost borne by farmers.

One Nation-One Ration Card

• The Ministry of Consumer Affairs, Food and Public Distribution initiated the One Nation One Ration Card pilot scheme in 2019 across four locations. This national ration card facilitates migrant workers and their families to access Public Distribution System (PDS) benefits from any fair price shop across the country.

Gobardhan Yojana

• The Ministry of Drinking Water and Sanitation introduced the GOBAR (Galvanising Organic Bio-Agro Resources) – Dhan scheme as part of the Swachh Bharat Mission (Gramin).
• This scheme aims to positively impact village cleanliness, generate wealth and energy from cattle and organic waste, and create new rural livelihood opportunities, thereby enhancing income for farmers and rural communities.

Aajeevika Grameen Express Yojana

• Launched in August 2017 under the Deen Dayal Antyodaya Yojana National Rural Livelihood Mission (DAY-NRLM), the Aajeevika Grameen Express Yojana (AGEY) provides an alternative livelihood source for Self Help Groups (SHGs) members. 
• The objective is to facilitate SHGs to operate public transport services in backward rural areas, offering safe, affordable, and community-monitored rural transport services to connect remote villages with essential services and amenities.

Pradhan Mantri Fasal Bima Yojana

• Approved by the Union Cabinet in January 2016, the Pradhan Mantri Fasal Bima Yojana replaces existing insurance schemes (NAIS and Modified NAIS). Emphasizing the theme of One Nation-One Scheme, it addresses shortcomings and weaknesses of previous schemes while incorporating their best features.

Highlights of the Scheme:

• Uniform premium of 2% for all Kharif crops and 1.5% for all Rabi crops paid by farmers.
• Premium for annual commercial and horticultural crops set at 5%.
• Low premium rates for farmers, with the government bearing the balance premium to provide full insured amounts against crop loss due to natural calamities.
• No upper limit on government subsidy, eliminating previous capping to ensure farmers receive full sum insured without reduction.
• Encouragement of technology use, including smartphones for capturing and uploading crop cutting data to expedite claim payments, and remote sensing to reduce the need for cutting experiments.

Pradhan Mantri Kisan SAMPADA Yojana

• Introduced in 2016 by the Ministry of Food Processing Industries, the Umbrella Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters of SAMPADA was later renamed as the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) in 2017 . 
• The PMKSY encompasses various component schemes, including Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation/Expansion of Food Processing and Preservation Capacities, Operation Greens, and Food Testing Laboratories.

Soil Health Card Scheme

• Launched by Prime Minister Narendra Modi in 2015, the Soil Health Card Scheme (SHCS) aims to address deteriorating soil quality and enhance farm productivity. 
• The scheme intends to provide all 145 million farm owners in the country with a Soil Health Card in the next three years. 
• The announcement of this ambitious scheme was made during the presentation of the first budget by Finance Minister Arun Jaitley in July 2014.

Mega Food Park Scheme (MFPS)

• Originally known as the Food Parks Scheme in the 10th Plan , it was later renamed the Mega Food Park Scheme (MFPS) in 2008. 
• With the goal of implementing the objectives outlined in the Vision 2015 document, the scheme focuses on creating excellent infrastructure. 
• As of August 1, 2021, there are 22 Mega Food Parks operating in the country. The objectives include providing state-of-the-art infrastructure for food processing on a pre-identified cluster basis, ensuring value addition of agricultural commodities, establishing a sustainable raw material supply chain for each cluster, facilitating the induction of the latest technology, and ensuring quality assurance through better process control and capacity building.

Rashtriya Krishi Vikas Yojana (RKVY)

• Launched in 2007-08 with an initial outlay of ₹25,000 crore in the 11th Plan, the Rashtriya Krishi Vikas Yojana (RKVY) incentivizes states to enhance public investment to achieve a 9% growth rate in agriculture and allied sectors. 
• The RKVY allows for taking up national priorities as sub-schemes, providing flexibility in project selection and implementation.
• Sub-schemes under RKVY include Bringing Green Revolution to Eastern regions, Integrated development of 60,000 pulses and oilseeds villages in rainfed areas, Promotion of oil palm, Initiative on village clusters, Nutri-cereals, National Mission for protein supplements, Accelerated Fodder Development Programme, Rainfed Area Development Programme, and National Mission on saffron-economic revival of Jammu and Kashmir saffron.

National Food Security Mission (NFSM)

• Launched in Rabi 2007-08, the National Food Security Mission (NFSM) aims to increase production through area expansion and productivity, create employment opportunities, and enhance the farm-level economy to restore the confidence of farmers.
• The components during the 12th Five Year plan include NFSM-Rice, NFSM-Pulses, NFSM-Wheat, NFSM-Commercial crops, and NFSM-Coarse cereals.

Some other Schemes

• Kisan Rail : Launched on August 7, 2020, the Kisan Rail facilitates the transportation of fresh fruits and vegetables from farmers to markets across India. 
• The Operation Greens – TOP to Total scheme provides a 50% subsidy to farmers, covering the transportation costs of popular produce like Tomato, Onion, and Potato (TOP). The inaugural Kisan Rail journey took place on August 7, 2020, between Devlali (Maharashtra) and Danapur (Bihar).
• Krishi UDAN Yojana: Initiated in August 2020, Krishi UDAN operates on international and national routes to aid farmers in transporting agricultural products, enhancing their value realization. Krishi UDAN 2.0 will specifically focus on transporting perishable food products from hilly areas, North-Eastern states, and tribal regions.
• Digital and Hi-tech Services Scheme: In a forthcoming scheme under public-private partnership (PPP), farmers will receive digital and hi-tech services. Public sector research and extension institutions, along with private agri-tech players and agri-value chain stakeholders, will collaborate in the implementation of this initiative.
• Start-up Fund Scheme: Emphasizing the agriculture start-up ecosystem, a blended capital fund will be facilitated through NABARD. The co-investment model aims to finance startups in agriculture and rural enterprises relevant to the farm produce value chain. Startups will engage in activities such as providing machinery on a rental basis at the farm level and offering IT-based support for Farmer Producer Organizations (FPOs).
• Ken-Betwa Link Scheme: Estimated at 44,605 crore, this scheme aims to provide irrigation benefits to 9.08 lakh hectares of farmers’ lands, drinking water supply for 62 lakh people, and generate 103 MW of Hydro and 27 MW of solar power. Draft Detailed Project Reports (DPRs) for five river links, including Damanganga-Pinjal, Par-Tapi-Narmada, Godavari-Krishna, Krishna-Pennar, and Pennar-Cauvery, have been finalized. After consensus among beneficiary states, the Centre will provide support for project implementation.
• Kisan Drones Scheme: The use of Kisan Drones will be promoted for crop assessment, digitization of land records, and the spraying of insecticides and nutrients.
• Chemical-free Natural Farming: A pan-India promotion of chemical-free natural farming with a focus on lands within 5 km wide corridors along the Ganga River will be implemented in the first stage.
• Support for Millet Products: The budget provides for post-harvest value addition, enhancing domestic consumption, and branding millet products nationally and internationally.
• Oilseed Production Scheme: To reduce dependency on oilseed imports, a comprehensive scheme to boost domestic oilseed production will be implemented.
• Food Processing: A comprehensive package, in collaboration with state governments, will assist farmers in adopting suitable varieties of fruits and vegetables, utilizing appropriate production and harvesting techniques.

 Agricultural Finance and Credit Facilities:

• Agricultural Finance and Credit Facilities: Agricultural credit is disbursed through a multi-agency network, including Commercial Banks (CBs), Regional Rural Banks (RRBs), and cooperatives. Cooperative Credit Institutions play a crucial role, covering almost all villages and extending credit in short and long-term structures.
• Post-nationalization, Commercial Banks extended their lending services to agricultural operations. Concurrently, Regional Rural Banks (RRBs) and farmer service societies fortified rural credit initiatives. The National Bank for Agriculture and Rural Development (NABARD) emerged as the apex agricultural finance institution.

Co-operative credit institutions

• In India, cooperative credit institutions for rural areas have been structured into short-term and long-term entities. 
• The short-term cooperative credit structure encompasses three tiers: 
• Primary Agricultural Credit Societies (PACS) at the village level, District Central Co-operative Banks (DCCB) at the district level, and State Co-operative Banks (SCB) organized at the state level.
• For long-term credit needs, various types of long-term credit co-operatives have been established, including Unitary, Federal, Mix of Federal and Unitary, and those providing long-term credit through the long-term section of State Co-operative Banks (SCBs).
• In 2011-12, co-operatives accounted for 17.2% of institutional agricultural credit.

The Agricultural Export Policy of 2018

• The Agricultural Export Policy of 2018 aimed to enhance productivity, pre and post-harvest management, value addition, and technological upgrades in the agricultural sector.
• The policy envisioned leveraging India’s agricultural potential to emerge as a global force in agriculture through suitable frameworks and policies.

Commercial Banks in Rural Credit

• Initially, the share of Commercial Banks in rural credit was limited after independence. 
• To supplement the efforts of co-operatives and Commercial Banks, Regional Rural Banks (RRBs) were established in 1976 through the Regional Rural Banks Act, 1976. RRBs receive equity contributions from the Central Government, concerned State Government, and sponsor banks.  
• NABARD regulates RRBs, and their lending rates cannot exceed those of co-operative societies in a particular state.
• The area of operation for RRBs is limited to specified regions comprising one or more districts of a state, focusing on providing direct loans to small and marginal farmers, rural artisans, agricultural laborers, and others with small means for productive purposes.

RRB (Amendment) Act, 2015

• The Regional Rural Banks (Amendment) Act aims to modify the existing legislation to raise the authorized capital of each Regional Rural Bank (RRB) from 5 crore to 2000 crore, divided into 200 crore fully paid shares of 10 each.
• The bill stipulates that the authorized capital of any RRB shall not be reduced below 1 crore, with shares in all cases being fully paid-up shares of 10 each. It also ensures that the issued capital of each rural bank remains at least 1 crore.
• Currently, 43 RRBs are performing well. The proposed amendment to increase the authorized capital to 2000 crore will fortify these institutions, contributing to the deepening of financial inclusion.

Kisan Credit Card (KCC) Scheme

• Initiated in August 1998 by the Government of India, Reserve Bank of India (RBI), and National Bank for Agricultural and Rural Development (NABARD), the Kisan Credit Card (KCC) Scheme facilitates farmers’ access to timely and adequate credit.
• The scheme incorporates components of consumption and investment credit within the overall credit limit, offering farmers sufficient and timely credit support for their cultivation needs.
• Budget 2012-13 expanded the scope of KCCs, allowing them to function as smart cards and ATMs. The card remains valid for three years, subject to annual renewals.

Essential Commodities Act (ECA)

• Enacted in 1955, the Essential Commodities Act (ECA) empowers the government to regulate the production, supply, and distribution of various essential commodities to ensure fair prices for consumers.
• Items under the Act include drugs, fertilizers, pulses, edible oils, and petroleum products. The Essential Commodities (Amendment) Act, 2020, brought modifications in line with the 2020 Indian farm reforms.

NABARD (An Overview)

• Established by the Government of India as a development bank, the National Bank for Agriculture and Rural Development (NABARD) focuses on facilitating credit flow for the promotion and development of agriculture and integrated rural development.
• Its mandate extends to supporting all economic activities in rural areas, promoting sustainable rural development, and fostering prosperity in rural areas. 
• As an apex institution , NABARD deals with policy, planning, and operations in the field of credit for agriculture and other economic and developmental activities in rural areas.
• Essentially, it serves as a refinancing agency for financial institutions providing production and investment credits for agricultural and developmental activities in rural areas.
• The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) functions as the apex cooperative organization at the national level. Established in 1958, NAFED engages in the procurement, distribution, export, and import of selected agricultural commodities.
• The Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) came into existence in 1987 and was registered under the Multi-State Cooperative Societies Act, 1984 , which later became the Multi-State Cooperative Societies Act 2002.

Recommendations from the Task Force on Credit-Related Issues of Farmers (led by Chairman Umesh Chandra Sarangi):

• The task force addressed the concern of a significant number of farmers who, having borrowed from private moneylenders, were not covered by the loan waiver scheme.
• Conduct financial literacy and counseling campaigns to raise awareness among farmers about the Kisan Credit Card (KCC).
• Encourage banks to educate their rural branch staff about the KCC.
• Utilize farmers’ cooperatives and Self-Help Group (SHG) federations as banking correspondents to enhance outreach.
• Implement technology-enabled enhancements to the KCC, including the transition to a smart card with withdrawal and remittance capabilities at Automated Teller Machines (ATMs), Points of Sale (PoS), and through handheld machines. Banks should expedite the implementation of Core Banking Solutions (CBS) to maximize technological benefits for farmers.
• Set a fixed KCC limit for five years based on the banker’s assessment of the farmer’s total credit needs for a full year. Allow the borrower to operate the limit as needed, without sub-limits for Kharif and Rabi or different stages of cultivation.
• Ensure automatic renewal and an annual increase in the credit limit linked to the inflation rate.

Agricultural Insurance Schemes:

• National Agricultural Insurance Scheme (NAIS): A government-sponsored crop insurance scheme since 1999-2000, providing financial support to farmers in case of crop failure due to natural calamities, pests, or diseases. The Agriculture Insurance Company of India Limited implements this scheme.
• Modified NAIS (MNAIS): Implemented on a pilot basis in 50 districts from Rabi 2010-11 to enhance crop insurance schemes. Both NAIS and MNAIS have been replaced by the unified and comprehensive Pradhan Mantri Fasal Bima Yojana.
• Pilot Weather-Based Crop Insurance Scheme (PWBCIS): Implemented as a Central Sector scheme from Kharif 2007 season, providing insurance protection to farmers against adverse weather conditions affecting crop production.

Commodity Futures Market:

• The commodity futures market aids in price discovery and offers a platform for price risk management in commodities.
• Currently, 113 commodities are notified for futures trading, with 51 actively traded in 5 national and 16 regional commodity-specific exchanges.

Forward Markets Commission:

• The Forward Markets Commission (FMC) regulated commodity futures trading under the Forward Contracts (Regulation) Act, 1952.
• In 2015, FMC merged with the Securities and Exchange Board of India (SEBI), consolidating into a single regulator for both stock and commodity markets in India.
• Mobile Apps for Farmers On December 23, 2015, Union Agriculture and Farmers Wealth Minister, Shri Radha Mohan Singh, introduced two mobile apps for farmers, outlined below:
• Mobile App Crop Insurance: This app enables farmers to access comprehensive information about the available insurance cover in their area. It calculates the insurance premium for notified crops, coverage amount, and loan amount for farmers with loans.
• Mobile App Agrimarket Mobile: This app automatically captures the user’s location through mobile GPS and retrieves market prices of crops within a 50 km range. Users also have the option to manually input market and crop details if they prefer not to use GPS.

Role of Research and Development in Agriculture

• Research and development, when applied to agriculture and allied sectors, can significantly contribute to achieving sustainable agricultural practices that meet nutritional security and improve farm income.
• The global food system is responsible for approximately one-fifth of Global Greenhouse Gas (GHG) emissions.
• Agriculture plays a crucial role in meeting half of the 17 Sustainable Development Goal (SDG) targets, including eliminating poverty and hunger. Climate-resilient varieties that resist multiple pests, diseases, and abiotic stress are crucial for climate and food security.

National Mission for Sustainable Agriculture (NMSA)

• NMSA is part of the National Action Plan on Climate Change (NAPCC) and will be implemented during the Twelfth Five-Year Plan.
• It aims to transform agriculture into an ecologically sustainable, climate-resilient production system while maximizing its potential for food security and economic stability.
• Objectives include developing strategic plans at the agro-climatic zone level, enhancing agricultural productivity through customized interventions, expanding weather station networks to the Panchayat level, promoting laboratory-to-land research, and strategizing long-term interventions for emission reduction.

Indian Council of Agricultural Research (ICAR)

• ICAR, an autonomous organization under the Department of Agricultural Research and Education, Ministry of Agriculture, Government of India, serves as the apex body for coordinating, guiding, and managing research and education in agriculture, horticulture, fisheries, and animal sciences throughout the country.
• Established on July 16, 1929, ICAR plays a crucial role in advancing agricultural research and education in India.

Other Crucial Agricultural Sectors

Several other pivotal sectors in agriculture are highlighted below:

• Livestock Sector: According to National Accounts Statistics (NAS) 2020, the Gross Value Added (GVA) of livestock in total agriculture and allied sectors has increased from 24.32% (2014-15) to 29.35% (2019-20).
• In 2018-19, this sector contributed significantly, producing 187.7 million tonnes of milk, 103,318 million eggs, 44.73 million kg of wool, and 5.51 million tonnes of meat.
• The government initiated the National Animal Disease Control Programme (NADCP) from 2019 to 2024 to combat Foot and Mouth Disease (FMD) and Brucellosis. This program, aiming for eradication by 2030, is the largest-ever vaccination initiative globally, covering both human and animal vaccinations.
• As part of the Animal Husbandry Infrastructure Development Fund (AHIDF) under the ANB stimulus package, a fund worth 15,000 crores was launched in 2020. AHIDF supports investments in dairy and meat processing infrastructure and animal feed plant establishments by various entities.

Dairy Sector:

• The dairy sector is the largest agricultural commodity, contributing 5% to the national economy and providing direct employment to over 8 crore farmers.
• India ranks first in global milk production, contributing 23% to the overall output, with the largest bovine production globally.
• Key schemes implemented by the Ministry of Agriculture in the dairy sector include the Intensive Dairy Development Programme, Infrastructure Strengthening for Quality and Clean Milk Production, and Assistance to Cooperative and Dairy Entrepreneurship Development Scheme.

The National Dairy Plan

• The National Dairy Plan, aiming for 180 million tonnes of milk production by 2021-22, focuses on breed improvement, cattle feed augmentation, and expansion or strengthening of milk processing infrastructure.
• The government, in Budget 2020, announced its target to double the milk processing capacity from 53.5 million tonnes to 108 million tonnes.

Livestock Insurance:

• A Centrally Sponsored Scheme for livestock insurance operates in all states, aiming to provide a protection mechanism for farmers and cattle bearers against losses due to animal death.
• The scheme is implemented in 300 selected districts, benefiting farmers and cattle bearers with indigenous/cross-breed milch cattle and buffaloes. Subsidies are restricted to two animals per beneficiary per household.

Sericulture Sector:

• India stands as the world’s second-largest producer of silk, contributing 18% to the global raw silk production.
• The country boasts all four varieties of silk: Mulberry, Eri, Rasar, and Moonga.
• Sericulture emerges as a highly profitable cash crop requiring minimal investment, providing employment to approximately 6 million individuals.
• The development of the silk industry in India is overseen by the Government of India, primarily through the Central Silk Board (CSB) , established under the Central Silk Board Act, 1948.
• India holds the second position globally, particularly in Mulberry silk production, following only China.
• Four regional Central Poultry Development Organizations, situated in Chandigarh, Bhubaneshwar, Mumbai, and Hessarghatta, focus on producing stocks suitable for backyard rearing and provide training to farmers for skill enhancement.
• The Poultry Development Scheme, consisting of Assistance to State Poultry Farms, Rural Backyard Poultry Development, and Poultry Estates, is currently in implementation.
• India ranks as the second-largest fish-producing country globally, contributing 7.56% to the global production. It accounts for 1.24% of the country’s Gross Value Added (GVA) and over 7.28% to the agricultural GVA.
• The fisheries sector has experienced remarkable double-digit annual growth of 10.87% since 2014-15, achieving a record fish production of 145 lakh tons in FY 2020-21 (provisional).
• The fisheries sector provides livelihood support to over 28 million people in India, particularly benefiting marginalized and vulnerable communities.
• The working capital for fishers and fish farmers includes costs such as fuel, ice, labor charges, and mooring/landing charges.
• The credit limit for existing Kisan Credit Card (KCC) holders is 3 lakhs, while new KCC holders in the fisheries sector have a limit of 2 lakhs.

National Fisheries Policy, 2020:

• To accelerate fisheries sector development, the government will formulate fisheries management and fisheries spatial plans.
• A National Fisheries Development Council will be established to provide guidelines for policy implementation and review objectives and progress.
• A clustered approach to aquaculture development will be adopted to increase fishermen’s income and boost exports.

India’s Position in World in Agriculture Production

Prelims Facts

• Agriculture in India serves as a means of livelihood [UPPSC (Pre) 2003]
• The size of marginal landholding in India is less than 1 hectare [BPSC (Pre) 2017]
• ‘History of Agriculture’ was written by MS Randhawa [UPPSC (Mains) 2015]
• Karnataka is the largest coffee-producing state in India [UPPSC (Mains) 2004]
• Jammu and Kashmir is the largest producer of saffron in India [UPPSC (Mains) 2004]
• The birthplace of the Indian ‘Green Revolution’ is Pant Nagar [MPPSC (Pre) 2006]
• The average yield of cotton is highest in Andhra Pradesh [BPSC (Pre) 2017]
• The net crop sown area in India is about 14 crore hectares [UP RO/ARO (Pre) 2016]
• The average cropping intensity of India is about 135% [UPPSC (Mains) 2012]
• ‘Handbook of Agriculture’ is published from the Indian Council of Agricultural Research (ICAR) [UPPSC (Mains) 2012]
• Blue Revolution is related to Pisciculture [UPPSC (Pre) 1997, CGPSC (Pre) 2016)
• The Kisan Credit Card scheme was announced in 1998 and 1999 [UPPSC (Mains) 2008, UPPSC (Pre) 2010]
• More quantity of gypsum is required for Paddy crop [UPPSC (Mains) 2007]
• India is the main producer of pulse crops and the largest consumer
• Uttar Pradesh is the largest sugarcane-producing state in India [UPPSC (Mains) 2013]
• India is the leading mulberry silk-producing state
• The most critical stage for irrigation in wheat is the CRI stage [UPPSC (Pre) 2005]
• Rainfed Area Development Programme (RADP) was launched in 2011-2012 [UPPSC (Mains) 2015]
• The National Agriculture Technology Project (NATP) is funded by the World Bank [UPPSC (Mains) 2002]
• Mexican Wheat is the plant (crop) used in the Green Revolution [UKPSC (Pre) 2012]
• NAFED (National Agricultural Cooperative Marketing Federation of India Limited) is the apex organization for marketing cooperatives at the national level [UPPSC (Mains) 2007]
• The Second Green Revolution proposed by the Prime Minister does not include encouraging Foreign Direct Investment in agriculture [UPPSC (Mains) 2008]
• The most impact of the Green Revolution was felt in the production of wheat [UPPSC (Mains) 2004]
• ‘Neeru-Meeru’ Water Harvesting Programme was launched in Andhra Pradesh in the year 2000 [UPPSC (Mains) 2016]
• ‘Yellow Revolution’ is related to Rapeseed-mustard production [UPPSC (Mains) 2012, UPPSC (Pre) 2022]

UPSC NCERT Practice Questions

1.the importance of antibution to which economy is indicated by its contribution to which of the following uppcs (pre) 2006.

(a) National income and employment

(b) Industrial development and international trade

(c) Supply of foodgrains

(d) All of the above

2. Consider the following statements.

1. Agriculture and allied sectors contribute more than

15% of Gross Domestic Product of India.

2. Share in total employment by agriculture as high as 48.9%.

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

(c) Both 1 and 2

(d) Neither 1 nor 2

3. Agricultural inputs (fertilisers/credit) balanced fertilisers are used UPPSC (Mains) 2008

(a) to increase production

(b) to improve the quality of food

(c) to maintain the productivity of the land

4. National Horticulture Mission was launched in which of the following Five Year Plans?

(a) Ninth Five Year Plan

(b) Tenth Five Year Plan

(c) Eleventh Five Year Plan 

(d) None of the above

5. The National Food Security Mission (NFSM) aims to enhance the production of

 3. Pulses

4. Coarse Cereals

5. Vegetables

Select the correct answer by using the codes given below.

(a) 1, 2 and 3

(b) 1, 2 and 5

(c) 2, 3 and 4

(d) 1, 2, 3 and 4

6. The price at which the government purchases foodgrains for maintaining the Public Distribution System and for building up buffer stocks are known as IAS (Pre) 2001

(a) Minimum Support Prices 

(b) Procurement Prices

(c) Issue Prices

(d) Ceiling Prices

7. The Government of India fixes the Minimum Support Prices after taking into account the recommendations of which among the following bodies?

(a) Ministry of Consumer Affairs, Food and Public Distribution

(b) Cabinet Committee of Economic Affairs

(c) Planning Commission

(d) Commission for Agricultural Costs and Prices

8. The Green Revolution in India has contributed to WBCS (Pre) 2007

(a) inter-regional inequality

 (b) inter-class inequality.

(c) inter-crop inequality

9. Bringing Green Revolution to Eastern India in a sub scheme of

(a) National Mission on Agriculture Extension and

(b) National Mission for Sustainable Agriculture

(c) Rashtriya Krishi Vikas Yojana

(d) It is not a sub-scheme.

10. Consider the following statements.

1. The concept Evergreen Revolution was given by renowned agricultural scientist Norman Borlaug.

2. Evergreen Revolution emphasises on organic agriculture and green agriculture with the help of integrated post management, integrated nutrient supply and integrated natural resource management.

11. ‘Yellow Revolution’ is related with UPPSC (Mains) 2012, UPPSC (Pre) 2022

(a) floriculture

(b) fish culture

(c) rapeseed-mustard production 

(d) wheat production

12. Among the followings which one is related to Blue Revolution in India? UPPSC (Pre) 1997, CGPSC (Pre) 2016

(a) Horticulture

(c) Pisciculture

(b) Floriculture

(d) Sericulture

13. Consider the following statements about the National Agricultural Insurance Scheme (NAIS).

1. The -2000 seasonen implemented from Rabi

1999-2000 season.

2. The scheme is available non-loanee farmers only.

Which of the statement (s) given above is/are correc

14. outie in ae folowing is a way to increase productivity in agriculture? BPSC (Pre) 2018

(a) Efficient irrigation

(b) Quality seeds

(c) Use of pesticides

(d) Use of fertilisers

(e) None of the above/More than one of the above

15. Consider the following statements about Rashtriya Krishi Vikas Yojana and state which one of them is incorrect? UPPSC (Pre) 2009

(a) It was launched during 2007 to 2008.

(b) It envisages an outlay of ? 25000 crore for the Eleventh Five Year Plan.

(c) Additional central assistance under the scheme would be available as 80% grant to the states.

(d) Activities under the yojana include integrated development of food crops, agriculture mechanisation, development of rainfed farming, etc.

16. Assertion (A) The Union Budget 2020-21 has focused on Rural Development with aim of doubling farmers income.

Reason (r) the 16 action points announced in the budget is centred around agriculture, irrigation and rural development. uppsc (pre) 2020.

(a) Both A and R are true and R is the correct explanation of A.

(b) Both A and R are true, but R is not the correct explanation of A.

(c) A is true, but R is false.

(d) A is false, but R is true.

Know Right Answer

1 (d) 

7 (d) 

Frequently Asked Questions (FAQs)

Q1: why is agriculture considered a crucial sector in the indian economy.

A1: Agriculture is considered crucial in the Indian economy for several reasons. Firstly, it is the primary source of livelihood for a significant portion of the population, especially in rural areas. Secondly, it contributes substantially to the country’s GDP, although its share has been declining over the years. Additionally, agriculture plays a vital role in food security, ensuring a stable and affordable food supply for the growing population. The sector also provides raw materials for various industries, contributing to economic diversification.

Q2: How do UPSC NCERT notes emphasize the challenges faced by the Indian agricultural sector?

A2: UPSC NCERT notes highlight several challenges faced by the Indian agricultural sector. These include fragmented land holdings, outdated farming techniques, inadequate irrigation facilities, and the dependency on monsoon rains. The notes also discuss issues such as the lack of access to credit for farmers, post-harvest losses, market inefficiencies, and the need for agricultural reforms. Understanding these challenges is essential for formulating policies and initiatives to address them and promote sustainable growth in the agricultural sector.

Q3: What role do government policies play in shaping the Indian agricultural landscape, as outlined in UPSC NCERT notes?

A3: UPSC NCERT notes underscore the significant role of government policies in shaping the Indian agricultural landscape. These policies cover areas such as land reforms, irrigation infrastructure, credit facilities, agricultural research and development, and market reforms. The notes discuss the impact of various policy measures on farmers’ income, productivity, and overall economic well-being. Additionally, the notes analyze the evolution of agricultural policies over time and their influence on the sector’s growth, emphasizing the need for well-targeted and dynamic policies to address emerging challenges in Indian agriculture.

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Agriculture Exports: Status and Challenges

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India’s agriculture exports have grown by 16.5% in April-September 2022 (on a year-on-year basis) compared to April-September in 2021.

Indian agricultural, horticultural and processed foods are exported to more than 100 countries in the world.

Major destination of India agricultural products are USA, Saudi Arabia, Iran, Nepal, and Bangladesh

Major commodities in export basket include rice (both Basmati and non-basmati), marine products, sugar, spices, cotton, wheat and buffalo meat.

Agricultural Exports: Trends

India has been a net exporter of agriculture products (exports greater than imports).

India’s agricultural exports (including marine and plantation products) crossed US$ 50 billion during the fiscal year ended March 31, 2022.

Technological advancements, government incentives, and institutional changes have contributed to a massive increase in agricultural output.

Source: Indian Express

Agriculture Exports: Potential and Opportunities

• India’s large extent of arable land, complemented by diverse agro-ecological conditions provide huge potential for cultivation of agriculture products.
• According to the FAO, India is the largest producer of milk, pulses and jute, and ranks as the second largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruit and cotton. India is also one of the leading producers of spices, fish, poultry, livestock and plantation crops.
• Globally, India ranks second in total agricultural production at US$ 367 billion, yet India’s share in export market is minuscule. This indicates huge opportunity in scaling up the exports.
• Effective action at multiple levels, from farm inputs, quality assurance, traceability and certification, to building connections to global value chains (GVCs) can help India reach the US$ 100 billion milestone in agri-food exports.
• Government renewed focus through policies such as  doubling of farmers’ income program; agriculture export policy;  ease of FDI in the agriculture sector have increased  investors confidence.
• Rise in foreign investments promoting agripreneurship. 100%  FDI in agriculture sector is allowed in horticulture, floriculture, apiculture, animal husbandry and aquaculture.

Agriculture Exports: Benefits

• Largest sources of livelihood:  Agriculture employs 152 million Indians as of March, 2022. 70% of rural households still depend primarily on agriculture for their livelihood.
• Increase Farmers Income: Increase in export of agri-commodities at globally competitive prices will help increase income for farmers.
• Rural Development: Improvement in farm incomes will boost rural demand and contribute to growth of rural economy and development.
• Trade Balance: Agriculture exports have consistently outperformed agri-imports. Agriculture sector has regularly maintained a trade surplus. This helps in mitigating Current Account Deficit (CAD) and help enhance forex reserves.

Agriculture Exports: Challenges

• Inward-looking policies: India’s agriculture policy is focused more on food security and price stabilization to control inflation in domestic market. The policy deprives farmers of higher prices in the international market.
• Value Addition: Lack of branding and promotion is hurting the competitiveness of India’s agriculture exports.
• Lack of uniformity: Lack of uniform quality standards, standardization of commodities and high losses in value chain have limited the potential of export of horticulture produce.
• Trade and Non-trade barriers: Maximum Residue Limit (MRL) in India’s agricultural products breach phytosanitary and sanitary measures in the global market.
• Low Yield: The yield levels of the majority of crops in India remain much lower than the global average.
• Fragmented landholdings: The average farm size in India is only 1.15 hectares. Majority of the Indian farmers belongs to small and marginal category.

Agriculture Exports: Steps taken

Agriculture Export Policy 2018 (AEP):

• Diversify export basket and destinations.
• Boost high value-added agricultural exports.
• Promote indigenous, organic, traditional and non-traditional Agri products exports.
• Provide an institutional mechanism for pursuing market access.
• Enable farmers to get benefit of export opportunities in overseas market.

Cluster Development:

• As part of the Agriculture Export Policy, 46 unique product-district clusters have been identified for export promotion. 2
• 9 Cluster Level Committees have been formed in different clusters like Varanasi (Fresh Vegetables), Ananthpur (Banana), Nagpur (Orange), Lucknow (Mango).

Financial Assistance Scheme (FAS):

• It is the export promotion scheme by the Agriculture and Processed Food Products Export Development Authority (APEDA).
• The primary aim of this scheme is to assist businesses in export infrastructure development, quality development and market development.
• The financial assistance under the scheme will range from INR 5 lakh (US$ 6,500) to INR 5 crore (US$ 650,000).

Ministry of Commerce & Industry Schemes:

• The Ministry of Commerce & Industry has also initiated several schemes to promote exports, including Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI) Scheme.
• The Ministry has also collaborated with the Ministry of Civil Aviation and the Railways (and 5 other Ministries) in utilization of Krishi Udan and Krishi Rail respectively, to ease out pressure of high freight rates.
• The effort resulted in smooth movement of perishables to the important Middle East, EU and South East Asian markets.

Agriculture and Processed Food Products Export Development Authority (APEDA):

• It was formed in 1986, under the APEDA Act 1985 for the development of the exports of the agriculture sector in India.
• The main functions of the authority are the registration of people as exporters, fixing standards and specifications for the scheduled products, carrying out inspections, collecting statistics and providing information, training and advisory services to the exporters.

Farmer Connect Portal:

• A Farmer Connect Portal has been set up on APEDA’s website for providing a platform for FPOs/FPCs, cooperatives to interact with exporters.
• Around 2360 FPO/FPCs and 2324 exporters have been registered as of 2022.

Virtual Buyer Seller Meets (V-BSM):

• To promote geographical indications (GI) registered with agricultural and processed food products in India.
• 17 V-BSMs have been organised with countries like Canada, Germany, Switzerland, Belgium, UAE and USA.

Agri-Cells:

• The Government has set up 13 Agri-Cells in Indian embassies in Vietnam, USA, Bangladesh, Nepal, UAE, Iran, Saudi Arabia, Malaysia, Indonesia, Singapore, China, Japan and Argentina.
• Aim is to provide inputs on real time basis to improve Indian exports at these destinations by promoting trade, tourism, technology and investment goals.

Agriculture Exports: A way ahead

• Empowering the farmer to improve quality: Farmers should be trained about export standards and compliances.  Krishi Vigyan Kendras can be engaged to take export-oriented technology to farmers and creating awareness among farmers about export opportunities.
• Infrastructure status: Providing Infrastructure status to agricultural value chains, such as warehousing, pack-houses, ripening chambers, and cold storage.
• Branding produce from Export Clusters: Export clusters (like Nagpur for Orange) lack organised marketing and branding support for their products. Branding will help ease their entry into international retail chains.
• Promoting Niche Indian products: Traditional wisdom and nutritional value of niche Indian food products, such as Indian variants of millets, fruits, rice, and oilseeds make them excellent export choices.
• Connect to GVCs: There is a need to connect Farmer Producer Organisations (FPOs) with global value chains and importers from other markets. It can help them understand quality needs and the importers can be assured of quality standards.
• Addressing logistics glitches: Agricultural commodities are perishable; and so logistics must be robust, containers made available timely, and freight costs stabilised.
• Bilateral trade and sectoral agreements: To ensure favourable tariffs for India’s agriculture exports and to address the non-tariff barriers that Indian exports face like the quality and testing protocols, fair trade certifications etc.
• Research and Development: It is important to promote R & D activities for new product development for upcoming markets, like fortification of food products.

Enhancing agriculture exports is one of the most potent lever in improving farm incomes and ensuring rural development.

Source: Indian Express , Indian Express , Indian Express , The Hindu BusinessLine , NABARD

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Agriculture's Role in India's Economic Transformation(UPSC CAPF Essay 2024 | 2025)

Introduction.

Agriculture in India holds untapped potential for job creation. By re-imagining agriculture as a “farm as a factory,” producing crops for further value addition, India can create jobs in the countryside. 

Converting onion and tomato to paste and puree  can add value to produce and create employment, similar to what sugar mills and dairies have achieved.

Current Employment Scenario

Decline in Unincorporated Sector Employment : The number of workers in unincorporated sector enterprises has fallen from 11.13 crore in 2015-16 to 10.96 crore in 2022-23. The drop is mainly in manufacturing, which saw a decline from 3.60 crore to 3.06 crore. In contrast, trade slightly increased from 3.87 crore to 3.90 crore, and "other services" rose from 3.65 crore to 4 crore.

Impact of Triple Shocks : The reduction in employment is attributed to demonetisation , the goods and services tax rollout , and the pandemic-induced lockdowns  between 2016-17 and 2021-22. These shocks severely impacted informal enterprises,  which traditionally absorb large masses of unskilled/semi-skilled labor.

Informal Sector as a Shock Absorber : The informal sector has historically acted as a buffer during economic downturns, particularly for those unable to find employment in formal sectors or agriculture, especially during years of crop failure.

Challenges in Employment Transition

Formal Sector Expansion : There is no reliable data to confirm an expansion in formal sector employment, which may offset the decline in the unincorporated sector. If formalization has occurred, it could be beneficial, as informal firms typically have low productivity and pay low wages.

Characteristics of Informal Firms : These firms have small-scale operations and low productivity, resulting in low wages for workers. The average annual emoluments per hired employee in unincorporated sector enterprises were just Rs 1,24,482 during 2022-23.

Structural Transformation : Genuine structural transformation requires transferring surplus labor from informal sectors (including agriculture and construction) to formal sectors (manufacturing and high-productivity services). However, the transition is challenging due to the capital-intensive nature of modern manufacturing and the skill demands of the IT and services sectors.

Agriculture as a Job Creator

Capital-Intensive Manufacturing : The manufacturing sector is becoming more capital-intensive with automation, artificial intelligence, and machine learning technologies, reducing labor demand. This shift limits the sector's ability to absorb surplus labor from agriculture and informal sectors.

Skill Demands in IT and Services : IT, accountancy, and financial services demand skills that many in India’s working population lack, creating a skills mismatch and limiting employment opportunities in these high-productivity sectors.

Agriculture’s Potential : Agriculture can create jobs in aggregation, grading, processing, packaging, transporting, warehousing, retailing of produce, and supply of inputs and services to farmers. This potential remains largely untapped due to a lack of infrastructure and investment in value addition processes.

Re-imagining Agriculture

Farm as a Factory : Viewing farms as factories producing raw materials for value addition can generate employment. Converting onion and tomato to paste and puree can replicate the success of sugar mills and dairies, which have not only added value to produce but also created numerous jobs in rural areas.

Job Creation in Rural Areas : This approach can create jobs in rural areas, adding value to produce and boosting the rural economy. It requires investment in infrastructure, such as cold storage facilities, processing units, and efficient supply chains.

By re-imagining agriculture  and adopting a vision of the “farm as a factory,” India can create jobs in the countryside and add value to agricultural produce. 

This strategy requires investment in infrastructure and support for value addition processes. 

Tapping agriculture's potential can lead to significant economic and social benefits, addressing both unemployment and rural development.

Importance for Exam Preparation

This article is crucial for UPSC CAPF Assistant Commandant exam preparation . Understanding the potential of agriculture in job creation is essential for essay writing. 

It provides insights into current affairs, which are vital for the CAPF AC syllabus 2024 . The recommendations and economic context discussed here offer valuable content for essays on similar topics.

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UPSC Mains Exam 2024: Subject-wise strategy for GS papers, expert analysis of trends emerging from past exams

A proper planning is a must if you are preparing for the upsc civil services main exam. the general studies and essay paper carries a big chunk of total marks..

The Civil Services Main Examination 2024 will start on September 20. Candidates who have passed the civil services preliminary examination 2024 must be preparing for the mains examination with full intensity.

The mains exam plays a vital role in the final ranks UPSC aspirants get, ultimately deciding which service he/she will get.

A proper planning is a must if you are preparing for the UPSC civil services main examination. The General Studies and Essay paper carries a big chunk of the total marks in the UPSC mains examination.

In this article, UPSC civil services aspirants will get to know the strategy to prepare for the civil services mains examination as provided by experts from the Rau’s IAS Study Circle . The focus of this article is on the preparation for General Studies papers.

As per experts, unlike the Preliminary exam, the main exam has a well-delineated syllabus which has remained unchanged since it was introduced in 2013. So they feel that excelling in Mains can be assured with thorough preparation and practice.

Highlights based on close analysis of mains exam papers of the past by experts:

1. Largely follow the syllabus: Barring a few years, when random questions have appeared, most of the questions in the main papers have been by the syllabus prescribed by the UPSC.

2. Based on Predictable themes: Questions in the UPSC mains follow a pattern, and we can predict broad themes. If somebody has prepared for the exam smartly, he/she should know the topics. Given no time constraint, he/she will be able to write a good answer to the questions asked.

3. Preparation and Practice cause the difference: What brings the difference in the marks of aspirants in the Mains exam is the hard work and preparation they have put in. Since the questions are predictable and stick to primarily contemporary issues related to the UPSC mains syllabus, the preparation and practice of answer writing bring about differences in the marks fetched by aspirants.

UPSC Civil Services Main Exam 2024: Last date to fill DAF I, link here

Subject wise strategy:.

● History (GS Paper 1):

○ History has a comprehensive syllabus covering India’s Art & Culture, Modern Indian History, Modern World History & India’s Post-Independence History. However, a quick glance at questions asked by UPSC reveals that the focus of UPSC has been Art & Culture and Modern Indian History, with relatively less focus on other sections like Post-Independence History and World History. Therefore, students should focus on these areas by going through important Art, Architecture and Literature from Ancient to Modern Times and mains aspects of Modern History. Most sources used by students in prelims for these sections are still relevant for this section.

● Geography (GS Paper 1) and Disaster Management (GS-Paper 3):

○ Geography: The focus of geography has been on important geographical phenomena of climatology, climate change, oceanography, the evolution of the earth and geomorphology. Some questions are also asked from industrial locations and distribution of resources. This section can be prepared well by going through NCERTs, PYQs and current affairs developments in geography and related fields. While writing answers, try to incorporate diagrams, maps and specific examples to substantiate which will help you fetch higher marks.

○ Disaster Management: Every year, one or two questions about disaster management and related issues are asked. Students should prepare for key disasters like cyclones, earthquakes, droughts, heat waves, and floods. The guidelines published by NDMA and the NCERTs are one good source for preparing these topics.

In pics: Candidates appear for UPSC Civil Services Prelims exam 2024

● Indian Society (GS Paper 1) and Social Justice (GS-Paper 2):

○ Indian Society: Questions from the Indian Society section focus on salient features of Indian society such as Caste, Class, language, religions, urbanisation, and issues related to vulnerable sections such as women, scheduled tribes and scheduled castes. The focus should be on these elements' current status, dynamism, and inter-relationships. One good way to prepare for this section is from sociology NCERTs of Class XI and Class XII, PYQs and notes of coaching institutions. Answers in this section should be enriched with examples, case studies, and some data to be substantiated.

○ Social Justice: Questions from the social justice section often focus on policy and legislation for vulnerable sections, development sectors such as health, education, and nutrition, and the workings of government schemes and their review. For this, students need to focus on important legislation related to children, women, old age, health, education, etc. For this, it is important to keep abreast of current affairs.

● Polity & Governance (GS Paper 2): Most questions from the Polity & Governance section are around issues of our constitution, such as various constitutional offices of governor, speaker, Parliament, centre-state relations, working and review of our judiciary, bureaucracy and fundamental rights. Students should have a good basic understanding of what they use while preparing for Prelims, and some evaluation, analysis and suggestions, which can be collated from various committee reports such as Second ARC, Law Commission Reports, NCRWC, etc.

● International Relations (GS Paper 2) & Internal Security (GS-Paper 3):

○ Four questions come from the International Relations section, with one on India’s foreign relations with a neighbouring or an important country such as China, USA, Russia, etc. This can be prepared by effectively following current affairs.

UPSC CSE Mains 2024: Check out the syllabus for History as optional subject

○ However, some static questions from this section are on international organisations and India’s diaspora, which are a bit static in nature. These can be prepared from notes, the Ministry of External Affairs website, and current developments from newspapers.

● Indian Economy & Agriculture in GS Paper 3:

○ Macroeconomics: This requires focusing on macroeconomic indicators, fiscal policy, monetary policy and broader issues in the Indian economy. The answers in this section should have focus on data and committee reports to substantiate better.

○ Agriculture: Agriculture section has high weightage which focuses on key challenges, trends and developments in the Indian Agricultural sector. For this one very good resource is reports of government committees like Ashok Dalwai Committee report on Doubling of Farming Income, Swaminathan Committee Reports, current policy developments in the agricultural sector. Students can prepare these using following current affairs and policy developments in the agricultural sector.

○ Infrastructure: Here the students should focus on issues related to Roadways, Railways, Ports, Airports etc. and their financing such as PPP etc. Focus should be on government initiatives and its assessment. This topic can include data, maps and diagrams to better enhance answer writing.

● Environment in GS Paper 3: About 3-4 questions come from environment and related issues such as biodiversity, conservation, India’s and global policies to address climate change, pollution and Environmental Impact Assessment. Most questions on these issues focus on the basic concepts and current developments related to the above aspects particularly policies and legislations etc. Focus should be current developments, examples, statistics and static concepts of environment from newspapers, monthly magazines etc.

● Science & Technology in GS Paper 3: Science & Technology section is dynamic in nature. However, what students need to prepare is to know what a technology is, its key applications in various fields; related regulatory and other challenges and suggestions to improve the situation. Students need to prepare these items with examples for various technologies and developments from the field of Indian science and technology.

● Ethics, Integrity & Aptitude in GS Paper 4: This paper demands good conceptual understanding of key ethical concepts like integrity, transparency, governance etc. with their applications, concerns and ways to bring them about in governance structures of India. Focus should be on also understanding the key philosophical positions and ethical theories in the field. There are many good textbooks to prepare for this paper, however, one thing that needs to be emphasised is the diligent preparation of topics from Previous Year Questions asked by UPSC.

So, what should the aspirants do?

1. Analyse past trends of GS Mains Paper and the weightage UPSC accords to them: For example, the history syllabus of the exam is very large. It is actually similar to the History Optional syllabus. However, the number of questions asked from say world history and post-independence history topics have been very limited. Students should therefore spend time while preparing for the Mains exam according to the respective weightage of topics in the exam.

2. Prepare important themes: Without memorisation & quick recall getting good marks in the exam is very difficult. Analysis of the past papers will give us an idea of the important themes that we have to prepare for the coming exam. We need to prepare comprehensive analysis, points and examples on these topics and memorise them, to produce the best answers on the topics. This will help us write the best answer in the limited time we have.

3. Do smart work along with hard work: The word limit for mains answers is between 150 or 250 words answers. Many students, while preparing for the exam, tend to think that they will become scholars of the subject while preparing for the GS syllabus. This often leads them to waste their time and effort, with the result that they neither become scholars nor do they achieve their goal of getting into Civil Services. Our target while preparing for this exam is to qualify for civil services and we need to prepare according to the demand of the exam.

4. Answer Writing Practice: Practice makes the perfect answers and hence maximum marks, this is the mantra of success in the mains exam. In the Mains Exam on an average, aspirants are expected to attempt 20 questions on disparate topics in 180 minutes. This is a very demanding task.

Students in order to write this quantum, should have a habit of writing this amount. Regular answer writing on its own or under the guidance of a coaching institution is advisable. Also, answer writing will expose us to the shortcomings in our preparation.

5. Write after preparation: In order to get maximum benefit of answer writing, start writing answers after reading the material for the subject. For example, before writing a test, try and revise the topic from the study materials you have collected. This will give you confidence while writing the test. Also, however, marks you score in the tests, ask your examiner for what more could have been done by you in the answer, so that you get those one or two extra marks. These one or two extra marks in each question will make all the difference in whether you are in the list or not.

6. Being optional ready: The scoring pattern in the mains exams reveal that most aspirants score in a band of 370-440 in the four GS papers. However, there is a wide difference in the marks students score in their optional subjects. Optional subjects have large syllabus and cannot be prepared in a small window. Ideally a student should have adequate preparation when he is appearing for the Prelims. The period between prelims and mains should be dedicated to revision, answer writing practice and mastering the Previous Year Questions asked by UPSC. This will help students score around 300 marks which is what top ranks score.

7. Prepare for Essay and Ethics: The Essay paper and Ethics paper together account for 500 marks. If we analyse the actual and maximum marks fetched by students in these papers, we will find that top rankers tend to score much higher in these papers. However, average aspirants tend to discount these papers and do not accord enough time in preparing for them. Ethics & Essay papers are very predictable and doable, if we put in effort the reward will be very high. Therefore, Aspirants should focus on them.

8. Take feedback and improve: Most students when they start writing mains answers are not able to write good answers. It is here that the role of good mentorship kicks in. A good mentor can analyse your answers and give personalised suggestions which students can incorporate in their answer writing styles and improve their marks.

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UPSC Chairperson Manoj Soni Puts Down Papers 5 Years Before Term Ends, Cites Personal Reasons

Reported By : Arunima

Edited By: News Desk

Last Updated: July 20, 2024, 15:32 IST

New Delhi, India

UPSC Chairperson Manoj Soni. (Image: X)

Manoj Soni's tenure as UPSC Chairperson was scheduled to conclude in 2029.

Union Public Service Commission (UPSC) chairperson Manoj Soni has tendered his resignation nearly five years before the completion of his tenure, citing personal reasons.

Soni’s decision, which comes as a surprise, has sparked speculation within administrative circles as the move comes amid the trainee IAS Puja Khedkar’s controversy.

However, official sources have clarified that his resignation is unrelated to recent controversies surrounding the UPSC, including the Puja Khedkar episode and ongoing questions regarding the conduct of IAS/IPS exams.

Soni became a member of the Union Public Service Commission in 2017 and assumed office as chairman on May 16, 2023.

According to a report by ‘The Hindu’, Manoj Soni resigned nearly a month ago. It remains unclear whether his resignation will be accepted.

IAS Puja Khedkar Controvery

Puja Khedkar, a 2023 batch Indian Administrative Service (IAS) officer of the Maharashtra cadre, has been accused of faking her caste and medical certificates.

The 34-year-old IAS officer made headlines over her alleged demands for a separate office, staff and quarters — which she is not entitled to as a probationer. Pune police are probing charges that she used a red beacon and an insignia of the Maharashtra government on her private Audi vehicle.

Khedkar is facing allegations of submitting fake certificates to secure her job and asking for special privileges at workplace, on charges of cheating.

UPSC) has filed an FIR against Khedkar and has issued a show-cause notice to Khedkar, asking why her candidature as an IAS officer should not be cancelled in light of the allegations related to fake certificates.

Nudged Out Owing to Current Controversy: Congress on UPSC Chairman Resignation

Meanwhile, Congress alleged that Soni was apparently “nudged out” given the current controversy in which the Commission is involved.

Congress president Mallikarjun Kharge alleged the BJP-RSS is systematically indulging in an institutional takeover of India’s constitutional bodies, thereby damaging their reputation, integrity and autonomy.

“The multiple scandals that have plagued the UPSC is a cause of national concern. PM Modi and his Minister of Personnel, Public Grievances and Pensions must come clean. Numerous cases of unqualified individuals faking caste and medical certificates seemed to have duped a ‘foolproof’ system,” Kharge said in a post on X.

This is a direct affront to the genuine aspirations of lakhs of aspirants, including SC, ST, OBC, EWS candidates who work hard, burning midnight oil in preparing for the Civil Services Examinations, he said.

“It is disconcerting how the UPSC Chairperson has resigned prematurely, five years before his term ends. Why was his resignation kept secret for a month? Is there any connection between the numerous scandals and the resignation?” Kharge said.

“This ‘blue-eyed-gem’ of Modi ji was brought in from Gujarat and promoted to being the Chairperson of UPSC ” he said.

Sardar Vallabhbhai Patel had referred to the civil servants as the ‘Steel frame of India’, but the Modi government’s desperate attempt to control every aspect of governance has punched holes in the same, Kharge alleged.

“This needs to be thoroughly investigated at the highest level so that such cases of fraudulent malpractices in UPSC admissions don’t happen in the future,” he said.

Congress general secretary in-charge communications Jairam Ramesh also slammed the government, saying the sanctity and autonomy of all constitutional bodies have been badly damaged since 2014 — the year Narendra Modi became the prime minister.

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Home » Economy » Agriculture » Indian agriculture in the present times

Indian agriculture in the present times

Since independence India has made much progress in agriculture. Indian agriculture, which grew at the rate of about 1 percent per annum during the fifty years before Independence, has grown at the rate of about 2.6 percent per annum in the post-Independence era. Expansion of area was the main source of growth in the period of fifties and sixties after that the contribution of increased land area under agricultural production has declined over time and increase in productivity became the main source of growth in agricultural production. Another important facet of progress in agriculture is its success in eradicating of its dependence on imported food grains. Indian agriculture has progressed not only in output and yield terms but the structural changes have also contributed. All these developments in Indian agriculture are contributed by a series of steps initiated by Indian Government. Land reforms, inauguration of Agricultural Price Commission with objective to ensure remunerative prices to producers, new agricultural strategy , investment in research and extension services, provision of credit facilities, and improving rural infrastructure are some of these steps.

• India’s production of food grains has been increasing every year, and India is among the top producers of several crops such as wheat, rice, pulses, sugarcane and cotton. It is the highest producer of milk and second highest producer of fruits and vegetables. In 2013, India contributed 25% to the world’s pulses production, the highest for any one country, 22% to the rice production and 13% to the wheat production.  It also accounted for about 25% of the total quantity of cotton produced, besides being the second-highest exporter of cotton for the past several years.
• However, the agricultural yield (quantity of a crop produced per unit of land) is found to be lower in the case of most crops, as compared to other top producing countries such as China, Brazil and the United States.

• Agricultural growth has been fairly volatile over the past decade, ranging from 5.8% in 2005-06 to 0.4% in 2009-10 and -0.2% in 2014-15. Such a variance in agricultural

growth has an impact on farm incomes as well as farmers’ ability to take credit for investing in their landholdings.

• Contribution to GDP over the years:

Role of agriculture in Indian economy:

• Share in National Income
• Largest Employment Providing Sector.
• Contribution to Capital formation.
• Providing Raw Material to industries.
• Market for Industrial Products.
• According to 2010-11 Agriculture Census, the total number of operational holdings was 138.35 million with average size of 1.15 hectares (ha). Of the total holdings, 85 per cent are in marginal and small farm categories of less than 2 ha (GOI, 2014).
• Farming for subsistence which makes scale of economy in question with majority of small holdings.
• Low-access of credit and prominent role of unorganized creditors affecting decisions of farmers in purchasing of inputs and selling of outputs
• Less use of technology, mechanization and poor productivity for which first two points are of major concern
• Very less value addition as compared to developed countries and negligible primary-level processing at farmer’s level.
• Poor infrastructure for farming making more dependence on weather, marketing and supply chain suitable for high value crops.

Importance in International Trade:

• Share in national income.
• Source of employment.
• Provision of food grains.
• Supply of raw materials to industrial sector.
• Market for industrial product.
• Earner of foreign exchange.

National Agriculture Market (eNAM) is a Pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities.

National Mission for Sustainable Agriculture (NMSA):

National Mission for Sustainable Agriculture (NMSA) has been formulated for enhancing agricultural productivity especially in rain fed areas focusing on integrated farming, water use efficiency, soil health management and synergizing resource conservation.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY):

Government of India is committed to accord high priority to water conservation and its management. To this effect Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has been formulated with the vision of extending the coverage of irrigation ‘Har Khet ko pani’ and improving water use efficiency ‘More crop per drop’ in a focused manner.

Paramparagat Krishi Vikas Yojana (PKVY):

The Paramparagat Krishi Vikas Yojana (PKVY), an initiative to promote organic farming in the country, was launched by the NDA government in 2015.

Pradhan Mantri Fasal Bima Yojana (PMFBY):

Pradhan Mantri Fasal Bima Yojana (PMFBY) is the government sponsored crop insurance scheme that integrates multiple stakeholders on a single platform.

Livestock insurance Scheme:

This scheme aims to provide protection mechanism to the farmers and cattle rearers against any eventual loss of their animals due to death and to demonstrate the benefit of the insurance of livestock to the people and popularize it with the ultimate goal of attaining qualitative improvement in livestock and their products.

Scheme on Fisheries Training and Extension:

It was launched to provide training for fishery sector so as to assist in undertaking fisheries extension programmes effectively.

National Scheme on Welfare of Fishermen:

This scheme was launched to provide financial assistance to fishers for construction of house, community hall for recreation and common working place. It also aims to install tube-wells for drinking water and assistance during lean period through saving cum relief component.

Micro Irrigation Fund (MIF):

The government approved a dedicated Rs5,000 crore fund to bring more land area under micro-irrigation as part of its objective to boost agriculture production and farmer’s income.

Future of Indian Agriculture:

• Future of agriculture is a very important question for the planners and all other stakeholders. Government and other organizations are trying to address the key challenges of agriculture in India, including small holdings of farmers, primary and secondary processing, supply chain, infrastructure supporting the efficient use of resources and marketing, reducing intermediaries in the market. There is a need for work on cost-effective technologies with environmental protection and on conserving our natural resources.
• There is a need for work on cost-effective technologies with environmental protection and on conserving our natural resources. Although its contribution in the gross domestic product (GDP) has reduced to less than 20 per cent and contribution of other sectors increased at a faster rate, agricultural production has grown. This has made us self-sufficient and taken us from being a begging bowl for food after independence to a net exporter of agriculture and allied products.
• Total food grain production in the country is estimated to be a record 291.95 million tones, according to the second advance estimates for 2019-20. This is news to be happy about but as per the estimates of Indian Council for Agricultural Research (ICAR), demand for food grain would increase to 345 million tones by 2030.
• India is blessed with large arable land with 15 agro-climatic zones as defined by ICAR, having almost all types of weather conditions, soil types and capable of growing a variety of crops. India is the top producer of milk, spices, pulses, tea, cashew and jute, and the second-largest producer of rice, wheat, oilseeds, fruits and vegetables, sugarcane and cotton.
• Many startups in agriculture by highly educated young ones show that they are able to understand the high potential of putting money and efforts in this sector. Cumulative effects of technology over the next decade will change the face of agriculture.
• Advantageous weather and soil conditions, high demand for food, untapped opportunities, various fiscal incentives given by the government for inputs, production infrastructure, availability of cheap credit facilities and for marketing and export promotion are attracting many individuals, big companies, startups and entrepreneurial ventures to do a lot of investments on innovations, inventions, research and development and on other aspects of business.
• The country’s population in the next decade is expected to become the largest in the world and providing food for them will be a very prime issue. Farmers are still not able to earn respectable earnings.

The National Commission on Farmers (NCF ) was constituted on November 18, 2004 under the chairmanship of Professor M.S. Swaminathan.

• Farmers need to have assured access and control over basic resources, which include land, water, bio resources, credit and insurance, technology and knowledge management, and markets. The NCF recommends that “Agriculture” be inserted in the Concurrent List of the Constitution.
• Establish a National Land Use Advisory Service , which would have the capacity to link land use decisions with ecological meteorological and marketing factors on a location and season specific basis.
• Set up a mechanism to regulate the sale of agricultural land, based on quantum of land, nature of proposed use and category of buyer.
• Increase water supply through rainwater harvesting and recharge of the aquifer should become mandatory. “Million Wells Recharge” programme, specifically targeted at private wells should be launched.
• Expand the outreach of the formal credit system to reach the really poor and needy.
• Reduce rate of interest for crop loans to 4 per cent simple, with government support.
• Restructure microfinance policies to serve as Livelihood Finance, i.e. credit coupled with support services in the areas of technology, management and markets.
• Cover all crops by crop insurance with the village and not block as the unit for assessment to avoid farmers suicide .

Conclusion:

• Change is happening in rural India but it has still a long way to go.
• Agriculture has benefited from improved farming techniques but the growth is not equitable.
• Land use is changing in rural areas as farmers are getting good value for their holdings. The effort should be to stop the migration to urban areas.
• The number of essential commodities should be reduced to an absolute minimum, especially the non-food crops.

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Indian Economy

Make Your Note

Agricultural Reforms

• 13 Oct 2020
• 11 min read
• GS Paper - 2
• GS Paper - 3
• Agricultural Marketing
• Direct & Indirect Farm Subsidies
• Growth & Development
• Government Policies & Interventions

Introduction

• The Government with the aim of transforming agriculture in the country and raising farmers’ income have passed three important legislation from Parliament.
• The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020,
• The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020,
• Essential Commodities (Amendment) Act, 2020.

The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020

• Freedom to the Farmers: The Act provides the farmers the freedom of choice related to sale and purchase of produce.
• Liberation from the Cess: The farmers will not be charged any cess or levy for sale of their produce under this Act. Further there will be a separate dispute resolution mechanism for the farmers.
• Promotes trade: It promotes barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State APMCs.
• Better price: It will open more choices for the farmer, reduce marketing costs for the farmers and help them in getting better prices
• One nation, one market: The Act will help create One India, One Agriculture Market and will lay the foundation for ensuring golden harvests for our hard working farmers.

The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act, 2020

• Aims to provide for a national framework on farming agreements that protects and empowers farmers to engage with agri-business firms, processors, wholesalers, exporters or large retailers for farm services
• Level playing field: The new legislation will empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field without any fear of exploitation.
• Transfers the risk: It will transfer the risk of market unpredictability from the farmer to the sponsor and also enable the farmer to access modern technology and better inputs.
• Attracts private sector: This legislation will act as a catalyst to attract private sector investment for building supply chains for supply of Indian farm produce to national and global markets, and in agricultural infrastructure.
• Eliminates intermediaries: Farmers will engage in direct marketing thereby eliminating intermediaries resulting in full realization of price.

Amendments to Essential Commodities Act (1955)

• India has become surplus in most agri-commodities but farmers have been unable to get better prices due to lack of investment in cold storage, processing and export.
• The imposition of the curbs on stocking of farm produce and regulation of the prices of commodities, etc. under Essential Commodities Act (ECA) are some of factors responsible for less entrepreneurial spirit and thus less investment in the farm sector.

Benefits of Amendments

• Any limits under ECA over these commodities will be imposed only in exceptional circumstances such as war, famine, extraordinary price rise and natural calamity.
• It will help drive up investment in cold storages and modernization of the food supply chain.
• The amendment is expected to help both farmers and consumers while bringing in price stability.
• It will also create a competitive market environment and also prevent wastage of agri-produce that happens due to lack of storage facilities.
• It is considered as a step towards transformation of agriculture and raising farmers’ income.

Significance of these Acts

• The reforms are expected to accelerate growth in the sector through private sector investment in building infrastructure and supply chains for farm produce in national and global markets.
• They are intended to help small farmers who don’t have means to either bargain for their produce to get a better price or invest in technology to improve the productivity of farms.
• The legislation on contract farming will allow farmers to enter into a contract with agri-business firms or large retailers on pre-agreed prices of their produce.
• It will also help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.
• It will promote the creation of Farmer Producer Organisations (FPO) on a large scale and will help in creating a farmer-friendly environment for contract farming where small players can benefit.
• Competition is the best protector of stakeholders whether it is consumer or the farmers. Having a variety of buyers will protect farmers from exploitation and by having more sellers (farmers), consumers can buy better products at better deals.

Farmers Protest and Issues Involved

• Apart from this, the Act empowers the Centre government to issue orders to States in furtherance of the law’s objectives.
• However, matters of trade and agriculture being the part of subjects on the State list, have caused resentment in States.
• Also, by allowing ‘trade zones’ to come up outside the APMC area, farmers have become apprehensive that the new system would lead to eventual exit from the minimum support price.
• In absence of any regulation in non-APMC mandis, the farmers may find it difficult to deal with Corporates, as they solely operate on the motive of profit seeking.
• With rising input costs, farmers do not see the free market based framework providing them remunerative prices.
• These fears gain strength with the experience of States such as Bihar which abolished APMCs in 2006. After the abolition of mandis, farmers in Bihar on average received lower prices compared to the MSP for most crops.

Impact on Stakeholders

• Farmers: The farmer is now the producer and the seller of his own produce and will be free to enter into agreement with private trade directly.
• Consumers: The consumers would now get the produce as much lower costs.
• Middlemen: Although the role of middlemen is not going to end completely, their hold on the trade will not be as strong.
• State governments: The state govt. of states such as Punjab and Haryana will be adversely affected as there will be a huge loss in annual revenue collection.
• It proposes an electronic trading in transaction platform for ensuring a seamless trade electronically.
• None of the legislation affects the Minimum Support Price in any way as the MSP is an administrative decision not a law.
• Agricultural Produce & Market Committee (APMC) will still be available as a choice to sell their products.
• The sale, lease or mortgage of farmers’ land is totally prohibited and farmers’ land is also protected against any recovery.

Way Forward

• Improve Agricultural Infrastructure to Strengthen Competition: Government should massively fund the expansion of the APMC market system, make efforts to remove trade cartels, and provide farmers good roads, logistics of scale and real time information.
• Empowering State Farmers Commissions: Rather than opting for heavy centralisation, the emphasis should be on empowering farmers through State Farmers Commissions recommended by the National Commission for Farmers , to bring about a speedy government response to issues.