Farm Subsidies CA : April 2019 - Jan 2020 - Oct 2020

2019-04-28 06:33:08

CA : Feb 2020 Onwards

2020-03-10 12:56:11

SUTRA PIC : is a program to research on indigenous cows by DST #scheme
MSP for MFP #scheme : Centrally sponsored scheme, for marketing of Minor Forest Produce expanded to all states and UTs under Mo Tribal Affairs, purchasing of produce under state gov.
Atma Nirbhar Bharat Abhiyan allocated Rs 30,000 crores for NABARD. #scheme
Direct Seeding of Rice i.e without using nursery helps in saving water up to 25%
Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 : create ecosys where farmers and trader enjoy freedom of choice of sale and purchase, towards one India one Agri market. #Act
Animal Husbandry Infrastructure Development Fund (AHIDF) launched : corpus of Rs 15,000 cr, incentivise investment infra in dairy, meat processing, animal feed plants etc, 3% interest subvention #body
Agriculture Infrastructure Fund : central sector scheme, long term debt financing for investment in post-harvest management etc, interest subvention 3% limit of Rs 2 cr on loans, credit guarantee by CGTMSE
State of Food Security and Nutrition in the World 2020 (SOFI 2020) by FAO, UNCF, WHO etc #report
- problem w/ unaffordability of good diets


###   Farmers Ordinance/ Bill #Act 
   Concerns over new farm ordinances, anti-farmer, erodes food security as gov intervention is eliminated, ordinances promote corporate control, encourage hoarding and black marketing, lack assurance about MSP
 -   **Essential Commodities Amendment Ordinance 2020** :
 	-   allows for regulating supply stock,
 	-   price range fluctuation is narrow, not applicable for value chain participants if stock limit is less than installed capacity, not apply to exporters if they show demand for export
 -   **Farmers Produce Trade and Commerce Ordinance 2020**
 	-   to bypass APMC providing freedom to trade in any area
 	-   local farmers may not find adequate demand for their produce at MSP, lack of long distance transport, forced to sell them at lower price
 -   **Farmers Agreement on Price Assurance and Farm services ordinance 2020**
 	-   creates legal framework for contract farming
 	-   negotiating power of farmers lesser than that of big corporates, quality parameters can be mutually decided but this could also help corporates

RBI guidelines for PSL
- 10% of total net bank credit to weaker section, 18% TNBC to agri advances
Food Coalition by FAO : proposed by ITL, to inc resilience of agri food system against COVID, multi stakeholder. #Treaty
MSP for Kharif crop based on 1.5 times the production cost or 1.5xA2+Fl, A2 covers all paid out costs directly by the farmer, FL is unpaid family labour.
- MSP also includes C2 costs -> rentals and interest forgone on owned land and fixed capital assets.
Agri food policy of IN : Be able to produce enough food, feed and fibre for large pop; protect the env, seamless movt of food across supply chain, food be safe and nutritious.
Sub Mission on Agroforestry SMAF : under NMSA, encourages farmers to plant multipurpose trees. #scheme
PLI for Food Processing Industry to create global food manufacturing hub. In PLI schemes incentives of 4-6% would be given on sales that are over and above previous years sales.
UN Food Systems summit 2021 to bring positive change food system
AIF
Lumpy skin disease : causes prolonged morbidity in cattle and buffaloes caused by LSDV virus.
Mission for Integrated Dev of Horticulture MIDH #scheme : CSC under Mo Agriculture provides technical support.
Zeolites 3d crystalline made of Aluminium Silicate are used to separate some gas species from mixture of gases.
Beed model relates to insurance subsidies given to companies so that they can provide cover to farmers of Beed district.
Harit Dhara : anti methanogenic geed supplement to cut down cattle methane emission by 20% also inc higher milk production.
Agriculture Investment Fund AIF : debt financing facility for investment in viable projects for post harvest mgt and community farming, gives interest subvention of 3% and credit guarantee.
Agri Infra Fund AIF : medium long term debt financing facility for post harvest mgt infra and community farming asset. Gives interest of 3% and credit guarantee for loans upto 2cr.

Legal backing for MSP cost on exchequer

River Ranching Program : in which fishes are kept captive for the 1st stage of their lives and subsequently released in ocean/river to grow as adults. Under the PM Matsya Sampada yojana.


**FAO reports and Programs :**
1. Global Report on Food Crises
2. State of World's Forests.
3. Codex Alimentariys Commission 1961 to dev food standards, guidelines
4. Word Food Summit 1996 which signed Rome Declaration to half the people suffering from hunger by 2015.
5. FAO Goodwill Ambassador Program
6. TeleFood 1997 for public awareness.
7. Right to Food Guidelines.
8. International Plant Protection Conventions 1952.
9. International Treaty on Plant Genetic Resources for Food and Agriculure aka Seed Treaty.
10. Globally Important Agriculture Heritage Systems GIAHS partnership initiative on sustainable dev. There are 3 recognised GIAHS sites in India and 37 in the world. 
	1. Kuttanad Below sea level Farming system in Kerala
	2. Koraput Traditional Agriculture of Odisha
	3. Pampore Saffron Heritage Kashmir

Landraces are naturally occurring variants of commonly cultivated crops are not commercially grown crops. Still have untapped genetic potential that could provide solution to various problems.

CA : Farm Subsidies April 2019 - Jan 2020 - Oct 2020

2021-09-09 08:49

MSP - recom by Commission for Agri Crops Cost & Prices (CACP) decided CCEA. If Market price is below MSP farmers can puchase at this price to counter price fluctuartion and distressed sale, MSP decided before sowing. #scheme
PM AASHA (Annadata Aay Sanrakshan Yojana) #scheme low coverage, physical procurement MSP, PDS cereals costly, confined to certain states, cumbersome registration, middleman dominate mandi sales.
Shanta Kumar #Committee streamline FCI Recomm :
- Reduce FSA beneficiary to 40%, allow private players to procure store grains.
- stop MSP bonuses adopt DBT, FCI procure only from weak state not from PUN HAR MP AP etc.
- Abolishing levy on rice (gov buys 25-75% rest sell open market).
- Deregulate fertilizer sector, outsource food grain stocking.
Beekeeping Develop #Committee Bibek debroy committee - India 8th largest honey produced: Recomm :
- recog bees as input to agriculture, engage women + SHGs, institutionalise
- National Bee Board rechristen it integrate w Bee develop centres,
- recog apiculture as subject for advance research, ease exporting norms, develop infra.
Paramparagat Krishi Vikas Yojana (PKVY) #scheme component of Soil Health Mgt Scheme project organic farming promoted by cluster(50+ farmers) approach
National Dairy Plan by Do Animal Husbandry and dairying assisted by WB, Central scheme focus on 18 milk producing states. Obj : increase productivity, organise milk processing sector. #scheme
Mission Organic Value Chain develop for NE region (MOVCDNER) : link farmers, faster certification, collection aggregation for NER. #scheme
Silk Samagra integrated #scheme for dev of silk, started by Central Silk Board; major components R&D ToT, seed orgs, market dev etc, breed improvement
One Nation One Ration card ONORC : #scheme
- linking ration card w/ aadhar mandatory, good for migrants,
- bi lingual format, 10 digit 1st 2 digit is state code, low dependence on shopkeepers, no ghost beneficiaries
- biometric authentication, 2 portals that are Integrated Management PDS IM-PDS and Annavitran host all related data
PM Kisan Maan Dhan: voluntary b/w 18 to 40 yr, monthly pension of Rs. 3000/- after 60 years age, contribution of Rs.55 to Rs.200/mth, Centre make equal contribution, spouse is also eligible #scheme
Market Intervention Price Scheme(MIPS) #scheme price support mech implemented on request of State gov, procurement of perishable and horticultural products during 10% fall in prices or 10% inc in production
#Report of Internal Working Group (IWG), set up by RBI - impact of loan waivers on state finances. Findings:
- lead to 12% of states fiscal deficit, lower lending to private business and less job creation.
- Recom : avoid waivers, holistic review of agri policies,
Participatory Guarantee #Scheme : they certify producers, act as local quality assurance system for organic products not for individual or 5 farmer group
National milk sample safety quality survey by FSSAI through 10% milk has safety issues, raw and processed both were non-compliant. Contamination due to Aflatoxin M1 and fungi. #report
Agricultural and Processed food products export development authority APEDA : 1985 under the Mo - Farmer Connect Portal for Farmer Producer Organisations FPO to interact with exporters. #body
WFP Nobel peace prize for UN's World Food Program #report
Kashtriya Kamdhenu Aayog conservation, genetic upgradation of indigenous breeds, under Mo fisheries part of Gokul mission, permanent apex advisory body part of Rashtriya Gokul mission #body
Rural Development Fund : 3 % cess from agri produce goes here to create maintain rural infra

Food Security CA April 2019 - Jan 2020

2019-05-02 17:59:50

International Food Policy Research Institute (IFPRI) Food Policy #Report 2019 : 45.4 % world pop rural 70% poor Rice Wheat staple consumption pattern change.
Half of all seeds sold in India are not certified by proper testing agency often of poor quality
'Feed our future' Cinema Ad Campaign by UN World Food Program.

PIB 2019 Year End Review

2020-03-07 18:29:12

MSP of Kharif crops and Rabi crops have been increased.
CHC Farm machinery help farmers for renting farm machinery.

Static : Issues Relating to Direct and Indirect Farm Subsidies and MSP

2020-10-22 07:52:39

Subsidy

Subsidy = Price paid by farmers for key inputs - Actual retail market price
It is of 2 types Direct farm subsidies and Indirect farm subsidies. Direct ones are being paid to make their product more competitive in the global market.
Indirect are given in form of cheaper credit facilities, farm loan waivers, reduction in irrigation and electricity bills etc. India spends 2% of GDP on it, Fertiliser accounts for 2/3rd of it.
2 ways it is done is by providing MSP like remunerative prices, other is supplying input at lower cost ex electricity, irrigation water, credit, fertiliser
Positive Impact
- stimulate dev, promote risk taking,
- encourage to use new inputs/ advance tech,
- keep farmers at par w/ non farming communities,
- providing food and nutritional security, inc access to poor farmers
Negative Impact - fiscal imbalance, wastage of resources, creates trade distortions, leads to environmental degradation, benefits mostly rich farmers, inc in stockpile of grains, changes consumption pattern

Types of Subsidies

Fertiliser - by C gov, make fertilizer available to farmers, ensure fair returns on investment, Retention price scheme, Retention price - Maximum Selling price = Fertiliser Subsidy, Nutrient Based Subsidy Scheme, Neem Coated Urea Policy, New Urea Policy
Irrigation/ Wateron usage of ground water, by providing canals, dams, low/no prices for their use
Seeds - distributing seeds at lower price
Power - to draw groundwater, to private parties, diff b/w price paid by farmers for usage of electricity and actual cost of generating electricity
Infra - roads, storage, power, info, transport
Credit - diff b/w interest charged from farmers and actual cost of providing credit

MSP

Pasted image 20220421131919.png

guaranteed min floor price, support farmer from excess fall in prices, distress sales, on 7 cereals, 5 pulses, 8 oilseeds, Cash crops like raw cotton, Copra, Raw Jute, Virginia flu
Done to incentivise farmers to adopt HYV, combat food scarcity, price fluctuations
CACP decides prices on factors like
- Cost of production
- Input price
- Market price
- Demand Supply
- Cost of Living
- price level/inflation in India
- internationals prices and domestic prices
- area under crop
- Yield, productivity
- Issue price
- Subsidies impact
- Inter crop price parity
- terms of trade b/w agriculture and non agriculture
- min 50% as margin over cost of production
- Implication of MSP on consumers of that product.
MSP is at least 1.5 times the cost of production incurred by the farmers. It is fixed twice a year on recom of CACP.
A2 + FL and C2 costs are considered.
- A2 covers all paid out expense in cash and kind incurred by farmers on seeds, fertilisers, chemicals, hired labour, fuel and irrigation etc.
- FL includes value of unpaid family Labour
- C2 costs account for rentals and interest paid on owned land and fixed capital assets.

Advantages

IN emerged grain surplus country
food security achieved at National Level
Inc in productoin of grains
food prices remained stable
inc in farm income
economic transformation in well irrigated areas

Drawbacks

biased towards Wheat
Rice; change in consumption pattern
more production of Wheat Rice Diversion of resources from crops like pulses, oilseeds etc
inc in public stockholding etc

Present scenario/Issues

no mechanism on ground to ensure farmers are paid MSP
implementation of CACP prices
change in criteria for calculating prices
should include demand side factors
distorted MSP - inefficiency in system

Other issues

fixing MSP for political reasons
low level of MSP causes agrarian crisis and farmer distress
lack of viability in agri, small land holding size, low productivity,
inc production cost, shrinking employment, declining growth rate

Solutions

Land reforms, Access to irrigation, inc productivity,
insurance coverage, public investment in agri, education and skill dev,
promotion of rural non-farm sector,
setting up of village labour intensive industries,
providing institutional credit

Alternative

Deficiency payment scheme ex PDPS,
ensure no resale of product takes place

Recom of Swaminathan #committee

changes in irrigation, productivity, credit, insurance,
food security, bio resources, public investment in agri
human dev, rural no farm

PYQ : Farm Subsidies, MSP

2020-10-30 16:48 :16

MSP

What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap?	2018
How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers?	2017
“In the villages itself no form of credit organisation will be suitable except the cooperative society.”–All Indian rural credit survey. Discuss this statement in the background of agriculture finance in India. What constrain and challenges do financial institutions supplying agricultural finances? How can technology be used to better reach and serve rural clients?	2014
What are the different types of agriculture subsidies given to farmers at the national and state levels? Critically analyze the agriculture subsidy regime with the reference to the distortions created by it.	2013
Food security bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO	2013

Answers and Analysis

What is Integrated Farming System? How is it helpful to small and marginal farmers in India? (समेहकत कृ नष प्णाली क्ा है? भारत में छोिे और सीमांत हकसानो के ल ं लए यह कै से लाभदायक हो सकती है?) 2022

How and to what extent would micro-irrigation help in solving India's water crisis? (भारत के जल सं कि के समाधान में, सूक्ष्म-ससचाई कै से और ं हकस सीमा तक सहायक होगी?) 2021

What is the present challenges before crop diversification? How do emerging technologies provide an opportunity for crop diversification? (फसल नवनवधता है के समक् मौजूदा चुनौनतयाँ क्ा हैं? उभरती प्ौद्योगगकीयाँ फसल नवनवधता के ललए हकस प्कार अवसर प्दान करती है ?) 2021

What are the major factors responsible for making rice-wheat system a success? In spite of this success how has this system become bane in India? (धान-गेहं प्णाली को सफल बनाने के ललए कौन-से प्मुख कारक उत्रदायी हैं? इस सफलता के बावजूद यह प्णाली भारत में अशभिाप कै से बन गई है?) 2020

Suggest measures to improve water storage and irrigation system to make its judicious use under depleting scenario. (ररतिीकरण पररदृश्य में नववेकी जल उपयोग के ललए जल भं डाराण और ससचाई ं प्णाली में सुधार के उपायो को ं सुजाइए।) 2020

How can biotechnology improve the living standards of farmers? (हकसानो के जीवन मानको ं को उन्नत करने के ं ललए जैव प्ौद्योगगकी हकस प्कार सहायता कर सकती है?) 2019

How far is the Integrated Farming System (IFS) helpful in sustaining agricultural production? (एकीकृ त कृ नष प्णाली (आइ. एफ. एस) हकस सीमा तक कृ नष उत्ादन को सं धाररत करने में सहायक है ?) 2019

Elaborate on the impact of the National Watershed Project in increasing agricultural production from water-stressed areas. (जल-प्नतबललत क्ेत्रो से कृ ं नष उत्ादन में वृगधि करने में जल-नवभाजक पररयोजना के प्भाव को सनवस्तार स्पटि कीजजए।) 2019

How was India benefited from the contributions of Sir M.Visvesvaraya and Dr. M. S. Swaminathan in the fields of water engineering and agricultural science respectively?(जल इंजीननयरी और कृ नष-नवज्ान के क्ेत्रो में ं रिमि: सर एम. नवश्ेश्रैया और डॉ. एम. एस. स्ामीनाथिन के योगदानो से भारत को ं हकस प्कार लाभ पहंचा थिा ?) 2019

Sikkim is the first 'Organic State' in India. What are the ecological and economical benefits of Organic State? (ससनक्म भारत में प्थिम 'जैनवक राज्य है। जैनवक राज्य के पाररस्स्नतक एवं आर्थिक लाभ क्ा-क्ा होते हैं?) 2018

Assess the role of National Horticulture Mission (NHM) in boosting the production, productivity and income of horticulture farms. How far has it succeeded in increasing the income of farmers? (बागवानी फाममों के उत्ादन, उसकी उत्ादकता एवं आय में वृगधि करने में राटिट्ीय बागवानी गमिन (एन० एच० एम०) की भूगमका का आकलन कीजजए। यह हकसानो की आय ब ं ढ़ाने में कहाँ तक सफल हआ है?) 2018

How has the emphasis on certain crops brought about changes in cropping patterns in recent past? Elaborate the emphasis on millets production and consumption. (गत वषमों में कुछ नविेष फसलो पर ं जोर ने सस्पन पैिनो में ं हकस प्कार पररवत्भन ला हदए हैं? मोिे अनाजो ( ं गमलिो) के उत् ं ादन और उपभोग पर बल को नवस्तारपूव्भक स्पटि कीजजए।) 2018

What are the major reasons for declining rice and wheat yield in the cropping system? How crop diversification is helpful to stabilize the yield of the crop in the system? (सस्न तंत्र में धान और गेहँ की गगरती हई उपज के ललए क्ा-क्ा मुख् कारण हैं ? तंत्र में फसलो की उपज के स् ं स्रीकरण में, सस् नवनवधीकरण हकस प्कार मददगार होता है ?) 2017

What is water-use efficiency? Describe the role of micro-irrigation in increasing the water-use efficiency. (जल-उपयोग दक्ता से आप क्ा समझते हैं? जल-उपयोग दक्ता को बढ़ाने में सूक्ष्म ससचाई की भू ं गमका का वण्भन कीजजए।) 2016

What is allelopathy? Discuss its role in major cropping systems of irrigated agriculture. (ऐलीलोपैथिी क्ा है? ससचं चत कृ नष-क्ेत्रो की ं प्मुख फसल पधिनतयो में इसकी भू ं गमका का वण्भन कीजजए।) 2016

Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (भारतीय कृ नष की प्कृ नत की अननजचितताओ पर न ं नभ्भरता के मद्ेनज़र, फसल बीमा की आवश्यकता की नववेचना कीजजए और प्धान मं त्री फसल बीमा योजना (पी० एम० एफ० बी० वाइ०) की मुख् नविेषताओ का उल् ं ेख कीजजए।) 2016

2.1 Food Security, MSP, Farm Subsidies