Kurukshetra February 2019: Boosting Agricultural Growth (Part-1) (Download PDF)

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Key Topics Included In This Article: PM-AASHA – Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, Pradhan Mantri Fasal Bima Yojana, e-NAM, Paramparagat Krishi Vikas Yojana, Kisan Credit Card Scheme, FARMER first Scheme, Micro Irrigation and Type, APMC Act, Agri-Business, Student Ready program Accelerated Irrigation Benefit Program.

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Boosting Agricultural Growth: Kurukshetra February 2019 (In English)

Boosting Agricultural Growth: Kurukshetra February 2019 is explained in this lecture

  • PM released IT policy for Dadra Nagar Haveli. M-Aarogya mobile app & door to door waste collection, segregation & processing of Solid Waste in Dadra & Nagar Haveli were launched.
  • Govt. is committed to doubling farmers’ income by 2022 & for this it has increased budgetary allocation of Agriculture & Farmers’ Welfare Ministry in budget 2018 - 19 to Rs. 58,080 cr. from 51,576 cr. in 2017 - 18.
  • Soil Health Card Scheme is taken up in comprehensive manner across country w/objective to enable farmers to apply appropriate recommended dosages of nutrients for crop production & improving soil health & its fertility.
  • Pradhan Mantri AnnadataAaySanrakshan Abhiyan (PM-AASHA) provides for holistic arrangement for assurance of remunerative & stable price environment for growers/farmers to increase agricultural production & productivity.

New Dimensions of Development in Agriculture

  • 70 % of country’s population is directly engaged in agriculture & allied sectors.
  • Proportion of agriculture sector is very low in economy of developed countries. It is 5 % in UK, 4 % in US, 14 % in France, 16 % in Australia, 21 % in Japan & 32 % in Russia.
  • According to Central Statistics Office (CSO), contribution of agriculture & allied sectors in national income during 1960 - 61 was 52%. In 2001 - 2002, share of agricultural sector in national income was 32.4%.
  • Agro-products like tea, sugar, rice, tobacco & spices contribute significantly in international trade & India exports these products in big way.
  • Govt. has made budgetary provision of Rs. 2,11,694 cr. for agriculture sector for 5 years, from 2014 - 19 which is 74.5 % more than pre. Govt. 2 corpus funds are constituted for 2017 - 20.
  • 5 thousand cr. is allocated for ‘Micro Irrigation Fund’ & Rs. 10,881 cr. for ‘Dairy Processing & Infrastructure Fund’.
  • Rs. 2000 cr. are earmarked for ‘Agricultural Market Infrastructure Development Fund’, Rs. 7550 cr. for ‘Fisheries & Aquatic Science Infrastructure Development Fund’ & RS. 2450 cr. for ‘Animal Husbandry Infrastructure Development Fund’.
  • MSP is announced for diff. agricultural commodities from Kharif season of 2018 - 19 which is one & half times of cost price or more.
  • Govt. has approved PM-AASHA to promoting pro-farmer initiatives. Objective of scheme is to provide peasants reasonable price for their produce.
  • Increase in MSP w/co-operation of Govt. will promote Kharif crops & will lead to increase income of farmers, target of doubling their earnings by 2002 is set.
  • Model Agricultural Produce & Livestock Marketing Act, 2017 & Model Contract Farming & Services Act, 2018 are implemented.
  • Under ‘Pradhan Mantri Fasal Bima Yojana’ Max. premium for Kharif crops is fixed at 2% & 1.5 % for Rabi crops.
  • Payment of 25 % of loss claims is being made online immediately.
  • Under scheme, insured amount per hectare was Rs. 17,509 during last 2 years, which got enhanced to Rs. 38,496. recording increase of 120 % during 2 years – 2016 - 18.
  • Govt. has launched electronic National Agricultural Market w/aim to bring transparency & improvement in agricultural marketing sector, to provide farmers better price of their produce & to create competitive environment. ‘e-NAM platform was introduced in 21 markets of 8 states.
  • Under scheme, e-market platform was made available in 585 regular markets till March 31,2018, w/online trading, issuance of e-permits & making e-payments, all activities of market can be encouraged to acquire digitalization.
  • Organic farming is being focused & promoted under Paramparagat Krishi Vikas Yojana’. Emphasis is on max. use of bio-chemicals, bio-pesticides & bio-fertilizers.
  • Soil Health Card Scheme to provide feedback to farmers on fertility of their agricultural land, on basis of testing 12 parameters of soil samples.
  • Use of fertilizers & micro-nutrients has resulted in reduction of use of chemical fertilizers by 8 - 10 % whereas yield of crops has increased by 5 - 6%.
  • Agriculture & food security – main objective is to ensure food & nutrition security at cost-effective prices in environment-friendly way.
  • ‘Agricultural Mechanization Promotion’ is launched w/aim of decreasing cost of farming, increasing crop-yield & mgmt. of crop-residues. It is being implemented in Punjab, Haryana, UP & National Capital Region of Delhi. Focus is on in-place mgmt. of crop residues. Scheme was announced in budget of 2018.
  • Govt. approved Rs. 1496 cr. for projects related to conservation & promotion of native breeds in 28 states under Rashtriya Gokul Mission.
  • Under Gokul Gram Yojana, Rs. 196 cr. are approved for 20 Gokul villages in 13 states, out of which 3 Gokul villages are completed. For 1st time, 2 National Kamdhenu Breeding Centres are being set up at cost of Rs. 50 cr. for overall development of indigenous livestock breeds & conservation & up gradation of native breeds.
  • Under National Livestock Productivity Mission set up at cost of Rs. 825 cr. work of providing Nakul Swasthya Patrato 9 Million milch cattle is in progress.
  • India is at 1st place in milk production & contributes 19 % of world’s total milk production.
  • Blue Revolution focuses on increasing fish production thru its multi-dimensional activities & aquaculture, inland & sea fishery resources.
  • New scheme ‘Deep-Sea-Fishing ’ is initiated.
  • Small Farmers’ Agri Business Consortium (SFAC) has constituted 546 Farmer Producers Organizations (FPOs) to increase income of farmers. Size of Joint Liability Group for landless farmers has increased from 6.70 to 27.49 lakh.
  • Under Entrepreneurship Development Program, Krishi Vigyan Kendras are helping farmers on various issues related to agriculture thru training & technological resources.
  • Programs like ‘Farmer First, MeraGaon, Mera Gaurav’ & ARYA’ are started.
  • ARYA (Attracting & Retaining Youth in Agriculture) scheme has proved to be very effective in making farming attractive occupation for educated rural youth.
  • ‘Rural Entrepreneurship Awareness’ scheme is launched for students.

New Procurement Policy for Enhancing Farmers’ Income

  • In 2016 - 17, total area under pulses increased to 28.86 million hectares w/output to 22.14 million tons.
  • Since inception of MSP policy in Agriculture, when MSP of both pulses & oilseeds were enhanced significantly area & output have increased accordingly.
  • New crop procurement policy announced by Govt. looks as most prudent policy that would mitigate uncertainty & fear of volatile & unfavourable prices of those crops.
  • In New Policy, govt. has envisaged 3 alternatives:

o In 1st, additional crops would be procured by Govt. w/partnership of concerned State Govt.

o 2nd case, seller of those crops would be paid balance of M. S. P & market price by govt. , but farmers would have to register themselves w/regulated market of area.

o In 3rd option, pvt. traders can procure those products but those traders would have to pay MSP as announced by Central Govt.

  • Diversification of crops w/growing of other crops along w/traditional crops would promote level of employment, adequate & regular use of machinery, proper use of inputs including water & enhancing of income thru new policy of assured marketing.
  • New procurement policy w/objective of assured marketing must boost area under high crops.
  • State procurement of some other high value crops must have its favourable impact in enhancement of income of farmers particularly small farmers, those are below 5 acres but precautions to mitigate challenges must adopted, while implementing new procurement policy.
  • New procurement policy would prove much useful for enhancing farm income, reducing imports of pulses & oilseeds, saving of foreign exchange & moreover for best utilization of limited sources for best interest of country.

Institutional Credit for Agriculture

  • As one of world’s largest agrarian economies, agriculture sector (including allied activities) in India accounted for 14.8 % of GDP in 2017 - 18, compared to 18.9 % in 2004 - 05 & around 30 % in 1990 - 91. Its role remains critical as it provides employment to around 50 % of workforce.

Production of major agricultural crops

  • Total food-grain production in India has increased from 234.50 million tons in 2008 - 09 to record 284.83 million tons in 2017 - 18.

Investments in Agriculture

  • Investments helps in increasing agricultural incomes, mitigating poverty & enhancing food security.
  • In 2014 - 15, pvt. Gross Capital Formation in Agriculture (GCFA) accounted for 83 % share, while that of public GCFA was 15%

Flow of Institutional Credit for Agriculture

  • India had adopted multi-agency approach to purvey rural credit, since nationalization in late 1960s.
  • Large number of formal agencies like Co-operative Banks, Commercial Banks & Regional Rural Banks were actively involved in providing bank credit for agriculture & its allied activities.
  • Non-banking Financial Institutions (NBFCs), Micro Finance Institutions (MFIs) & Self Help Groups (SHGs) were involved in purveying agricultural credit.

Agricultural Credit Flow vis-à-vis GoI targets

  • Decreasing trend observed in share of MT/LT agricultural loans till 2012 - 13 has seen welcome reversal & its share has steadily gone up to high of 35.60 % in 2017 - 18.
  • Long-term investments in agriculture has contributed to production of various commercial & horticultural crops.

Agencies contributed to agricultural credit flow

  • RRBs exhibited highest CAGR, while Co-operative Banks reported CAGR of nearly 10%.
  • Commercial Banks have consistently maintained share of more than 70 % while share of Co-operative Banks at 13 % has witnessed steady slide from high as 40 % during 1999 - 2000. Share of RRBs is slowly inching upwards & stands at 12 % during 2017 - 18.

Widening Access to Agricultural Credit

  • Commercial Banks have exhibited phenomenal growth in number of borrowers financed w/CAGR of nearly 20%.
  • Co-operative Banks had greater number of agricultural loan accounts among all agencies until 2012 - 13, have witnessed steady fall in their number of agricultural borrowers, while RRBs have shown growth of around 10%.

Coverage of Small & Marginal Farmers

  • It is accounted for 72 % of agricultural loan accounts & 50 % of agricultural credit flow in 2016 - 17, up from 63% & 44 % earlier.

The Way Forward

  • 58 mha are multiple-cropped now, primarily due to availability of public or pvt. irrigation.
  • Productivity issues can be improved by ensuring better irrigation – thru public or privately owned modes, better use of farm equipments & timely availability & use of better seeds, fertilizers & other inputs.
  • Kisan Credit Card Scheme was envisaged to provide easy & hassle-free credit to farmer. It has met w/admirable success & w/launch of RuPay KCC, became cost-effective.
  • Financing to SHGs & JLGs are attempts to leverage on group collateral to provide credit to rural poor women & small & marginal farmers.
  • Cooperative farming, collective farming, Farmer Producers Organizations (FPOs), JLGs, leasing out land or contract farming are ways of aggregation for input supplies to reduce costs as for marketing to ensure better prices.
  • Negotiable Warehouse Receipt (NWR) system will enable farmers to monetize their produce early & avoid distress sale.

New Initiatives in Research & Extension

  • National Academy of Agricultural Sciences observed, ‘Investment in agricultural research in India is win-win option as it was largest contributor to agricultural total factor productivity, which contributed to reducing rural & urban poverty.

New Varieties, New Hopes

  • ICAR developed total 795 new crop varieties during last 4 years & 136 varieties of horticultural crops.
  • Wheat variety HD CSW-18 is 1st variety specifically bred for conservation agriculture. It will reduce water requirement & help in residue mgmt.
  • High-protein variety of Mungbean, called Virat was released w/short duration & Iron rich variety of Lentil (Pusa AgetiMasoor. )
  • 8 GM Bt cotton varieties were developed for 1st time in India for commercial cultivation.
  • Waging war against malnutrition thru agricultural research, array of bio fortified varieties of field crops & horticultural crops are developed. Rice variety CR Dhan 310 is protein rich, whereas wheat HPBW01 carries high iron & zinc content, pomegranate ‘Solapur Lal’ has iron, zinc & vitamin C & Medika grape is full oxidants, help fight cancer.

Improved Livestock for Livelihood security

  • Livestock play central role in livelihood of farmers by assuring additional income w/low investment, & ‘insurance’ against climatic distress.
  • Breeds of popular livestock species were developed thru systematic research for higher production.
  • ‘Jharsim’ poultry bird released for Jharkhand & Bihar has capacity of producing 120 - 130 eggs per annum
  • Narmada Nidhi for Madhya Pradesh, Kamrupa for Assam & Himsamridhi for Himachal Pradesh are other poultry varieties showing promise in their respective region.
  • New advanced breed of sheep ‘Abhishan’ is developed for dry areas of country. It has shown promise of raising income of sheep farmers. 9 improved cross bred varieties of pig were developed for north-east & south region.
  • Ambitions research program to develop indigenous vaccines & diagnostic kits was launched in ICAR institutes. Vaccines developed against PPR, sheep pox, equine influenza, classical swine fever & Johne’s disease are found against respective disease.
  • Diagnostic kits developed for Japanese Encephalitis, Brucellosis, FMD & Avian influenza are performing w/equal accuracy.
  • In fisheries sector, technology of marine cage culture of high-value Cobia & Silver Pompano fishes has demonstrated impressive average production levels of 3.0 tons in 6 months, that is 25 - 30 kg per cubic metre.
  • During 2017 - 18,1095 cages are installed all along coast line of India.
  • State-of-art fishing vessel is commissioned & is being used for trawling, gill-netting & long-lining. Innovative fishing crafts & gears are developed to increase efficiency & output.

Integrated Farming for Improved Income

  • IFS approach has become core research activity due to its potential to increase farmers’ income & site-specific employment to small land holders.
  • IFS involves synergic blending of crops, horticulture, dairy, fisheries, poultry etc. to optimize use of by-products, residues & wastes generated in each system in compatible & sustainable manner.
  • In latter model, rice production increased from 2.97 tonne/ha to 4.6 tonne/ha w/benefit of 41 kg fish & 1.7 tons vegetable from 2800 sq. meter rice fields.
  • Scientists have developed ‘3-tier system’, where farmers can grow 3 diff. vegetables on same piece of land at a time. It has made big impact in Bihar, North Bengal & NE region.

Lab to Land

  • Vast & pan-India network of 692 Krishi Vigyan Kendrasare extending training & technology support to farmers for quality seed, planting material & animal/fish seed production.
  • 35 KVKs launched massive campaign to motivate farmers against burning of straws. 1200 live demonstration of relevant machineries & residue mgmt. practices were conducted in 4700 hectare area. 151 climate resilient villages are established in most climate sensitive regions.
  • Contingency crop plans are developed for 623 dist. which include technology solutions to overcome weather disasters in crops, horticulture, animal husbandry, poultry farming, fisheries & other fields. Contingency planning provides information on alternate crop varieties & agronomic measures to be taken up in case of weather related extreme events.
  • Nanaji Deshmukh National Phenomics facility, located at Indian Agricultural Research Institute will prove boon to overcome adverse effects of changing climate on various agricultural crops.
  • In ‘MeraGaonMera Gaurav’ 4 agricultural scientists work w/5 identified villages & share their experiences on agriculture & allied enterprises to solve issues & problems of farmers at field level.
  • ARYA emphasizes entrepreneurship development & value chain mgmt. to attract & empower youth in rural areas.
  • ‘FARMER first’ scheme is enriching Farmers-scientists interface thru which scientists are working w/more than 48,000 farm families to increase their income.
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Boosting Agricultural Growth: Kurukshetra February 2019 (In Hindi)

Boosting Agricultural Growth: Kurukshetra February 2019 is explained in this lecture

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- Published/Last Modified on: April 3, 2019

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