Policy Response Agriculture Sector: Economic YouTube Lecture Handouts

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Reforms in Storage System

  • Private Entrepreneurs Guarantee (PEG) Scheme: Under this, the Storage capacity which will be created by Private parties, under PPP, or by government agencies will be hired by FCI for 9 - 10 years and appropriate charges will paid. Aim is to increase the role of private sector and to enhance the storage system in India.
  • It will lead to modernization of storage infrastructure & improvement in shelf life of store grains.
  • Online Depot-management system: It Automates the process of depot operations including receipt of food grains at the depot, storage, maintenance activities and issue of food grains. Thus, entire system has been made online to eliminate human clerical errors and to streamline the process with real time monitoring.

Agriculture Credit

  • The target for FY 2019 - 2020 has been set at ₹ 13,50, 000 crore. Thus, ensuring adequate credit availability in farm sector.
  • RIDF fund has been constituted for activities like watershed development, irrigation, Roads etc. This will aid the development and will reduce logistics cost.
  • A dedicated micro-insurance fund has been created under NABARD with a corpus of ₹ 5000 crore for expanding Micro irrigation under PMKSY-PDMC. (Pradhan Mantri Krishi Sinchayee Yojana – per drop more crop) .
  • Providing Loan waiver, interest subvention and crop insuarnce. Under, Pradhan Mantri Fasal Bima Yojna, In 2018 - 19,564.50 lakh farmer applications covering an area of 517.70 lakh ha were insured for a sum of about ₹ 2,35, 642 crore.
  • Krushak Assistance for Livelihood and Income Augmentation (KALIA) (Orissa) : Under the scheme, financial support of ₹ 25,000 per farm family over five seasons is provided, whereas for landless agriculture households, financial assistance of ₹ 12,500 is provided.
  • Mukhya Mantri Krishi Ashirwad Yojana of Jharkhand : All the small and marginal farmers of the State, who have arable land up to a maximum of 5 acres are given a grant-in-aid at the rate of ₹ 5000 / - per acre per year.
  • Rythu Bandhu of Telangana: ₹ 4,000 per acre per season to all the farmers (Pattadars) in the state.
  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) : ₹ 6000 yearly in 3 installment to the farmer.
  • For farm mechanization, Custom hiring centres (CHC) have been introduced in various states. This gave boost to farm mechanization and productivity.
  • Custom hiring centres (CHC) : In various states, it has been established with the aim of farm mechanization. It worked as impetus to farm mechanization, productivity, rural employment etc.

New Agriculture Policy 2000

  • To give greater emphasis on livestock, animal husbandry, dairy, aquaculture. Leveraging the benefits in allied sector.
  • To ensure food and nutrition security.
  • MSP (Minimum support price) : To Ensure adequate price to farmers.
  • Increasing public investment in rural infrastructure like electrification, roadways, irrigation etc.
  • To provide crop insurance facility. National Agriculture Crop insurance scheme was launched & now replaced with PM Fasal Bima Yojna.
  • Create off-farm activities and promote allied sector.
  • Allowing private sector participation.
  • Rashtriya Gokul Mission: Under the mission, Breed improvement programme for indigenous breeds are conducted.
  • E-pashu Haat portal: A dedicated Portal to sell & purchase breeding stock.
  • Livestock health & Disease control scheme: Vaccination is done in order to avoid diseases like FMD, brucellosis etc. Thus, it prevents loss of livestock.
  • Fisheries and Aquaculture Infrastructure Development Fund (FIDF) : It was created with a total outlay of ₹ 7522.48 crore to attain objectives like increasing productivity and production in fisheries & aquaculture.

Practice Question

Q 1 Consider the following statements

A) Under PEG scheme, government gives Grant in Aid to states to set up storage infrastructure with participation of private sector.

B) The infrastructure is leased by the FCI for 9 - 10 years.

Which of the following are correct.

1) 1 only

2) Both 1 and 2

3) Only 2

4) Neither 1 nor 2

Answer: 3