AGENDA for AGRICULTURE
▒ Higher MSP and procurements
▒ Higher price through agri-market reforms
▒ Lower cost through better input management
▒ Solarisation of farms
▒ Organic farming
▒ Allied activities for small or land-less farmers
▒ Agri exports policy
▒ Food processing, cold storage & good logistics
Modi govt is surely working on many fronts to raise farmers' incomes and hoping to turn farmers solidly in their favour for Lok Sabha elections.
Higher MSP and procurements ๐
-----------------------------
Govt fulfilled its pledge and fixed MSP of crops to at least 1.5 times the cost of production. It did this using the middling calculations (A2 + Family labour basis). As a result, 14 summer crops were given substantial hikes in July 2108. An overall increase in MSPs of between 4 to 52% would cost the exchequer Rs15,000cr.
There will always be price fluctuations in agri-commodities and higher MSP by itself is not enough for farmers to get good prices. Govt procurement becomes very important when prices crash due to a glut in production. Nafed was given Rs 29,000cr bank guarantee to massively improve its capacity to do procurements.
≈► Expansion in procurements with MSP: 4.5mT or 18% of total pulses production and 2mT of oilseeds, were procured in 2017-18. These are not limits but based on need. Govt may extend this to coarse cereals.
≈► Expansion in procurements without MSP: selective interventions are done to stabilise markets, eg oil palm, chillies, and turmeric (AP), ginger (Arunachal), areca nut, onions and turmeric (Karnataka), chillies and grapes (Mizoram), onions and chillies (Telangana), potatoes (UP, WB).
Higher price through agri-market reforms๐
-----------------------------
Agri-markets cannot be perfect. Many steps are being taken to improve efficiency, competitiveness, and transparency of agri-marketing systems.
≈► APLM Act 2017 is a template for far-reaching reforms in liberalising agricultural markets. States are given the flexibility to tweak reforms. The many States but not all have accepted it.
≈► Govt has worked cooperatively and convinced States to join the National agri-market called eNAM. Launched in April 2016, 585 mandis have been linked and another 400+ will join by 2019. A solid platform is emerging.
≈► 22,000 rural haats are being upgraded to Grameen Agricultural Markets. GAMs provide a nearby physical exchange for agri-produce procured through eNAM or direct purchase.
Lower cost through better input management ๐
-----------------------------
Input management will help farmers earn more. Govt says and is doing a great deal in many ways:
≈► Irrigation: Agriculture minister says all 99 major and medium projects under PMSKY (allocated Rs 40,000cr over 3 years) will be completed in 2019, of which 18 are done, and 60 are mostly completed. New micro-irrigation additions have reached 1.05m Ha in 2017-18. It should go up to 1.5 - 2.0mHa per year.
≈► Watershed development and water conservation: 1m ponds have been built under MNREGA.
≈► Nutrients: farmers had to buy in the black market as their entitlement was snatched by sharks in the chemical industry. Urea diversion (35-40% of supply) was stopped though neem-coating, and now there is no shortage of low-cost urea for farmers.
≈► Soil Health Card: testing labs have shot up from 45 to 10,000 labs across the country!! Standards were devised and SHC distributed. Input costs have fallen "substantially" states the minister.
≈► Improved crop varieties: 795 crop varieties were developed by ICAR and distributed, in the last 4 years. Out of these, 495 varieties were tolerant to climate change. 20 bio-fortified varieties were developed and released.
≈► Other measures: increased loan disbursements, help for landless farmers to acquire land, help to set up 2700 Farmer Producer Organisation (benefits conferred as well). 45 Integrated Farming System (IFS) models were developed for small farmers, with emphasis on effective use of resources.
Solarisation of farms ๐
-----------------------------
Solarisation of farms incl. solar pumps and farmer-based PV solar, are being pushed in a mission mode under KUSUM Scheme. Generous funding and substantial subsidies (28,000 MW, Rs 48,000cr subsidy for 60% cost) will enable farmers to earn good incomes from low-quality land, etc.
Organic farming๐
-----------------------------
Previously organic farming was a cottage industry (ie scattered & small scale). Rs 1000cr funding to States has created 10,000 clusters across the country. Sikkim is the first exclusive organic state and the other NE States and UTs are working hard towards it.
Allied activities for small or land-less farmers๐
-----------------------------
Funds and schemes are available for diary, animal husbandry and livestock development; development of water bodies, marine & freshwater fisheries and aquaculture; and collaborative farming like beekeeping, mushroom production, agroforestry and bamboo production. Govt is funding programme for improving genetic makeup of indigenous livestock through scientific breeding.
Agri exports policy๐
---------------------------
It is an opportune time to bring out a WTO compliant agricultural export policy, as India is no longer allowed to give export sops. Govt wants to double exports to $66b by 2022, and focus on high value & value-added agricultural exports and perishables. This is possible as its value addition is low at 15% against 25% & 49% for the US and China. It proposes a financial package for R&D for value addition. Exports controls will not apply to processed items, organic foods and non-essential foods. Pre- & post-harvest management will be strengthened and brought to a high standard through quality regimen, infra and logistics. Reforms like liberalised leasing policy can open possibilities through private sector investment.
https://plus.google.com/100789863972538583352/posts/cBsKdbXn9Jj
▒ Higher MSP and procurements
▒ Higher price through agri-market reforms
▒ Lower cost through better input management
▒ Solarisation of farms
▒ Organic farming
▒ Allied activities for small or land-less farmers
▒ Agri exports policy
▒ Food processing, cold storage & good logistics
Modi govt is surely working on many fronts to raise farmers' incomes and hoping to turn farmers solidly in their favour for Lok Sabha elections.
Higher MSP and procurements ๐
Govt fulfilled its pledge and fixed MSP of crops to at least 1.5 times the cost of production. It did this using the middling calculations (A2 + Family labour basis). As a result, 14 summer crops were given substantial hikes in July 2108. An overall increase in MSPs of between 4 to 52% would cost the exchequer Rs15,000cr.
There will always be price fluctuations in agri-commodities and higher MSP by itself is not enough for farmers to get good prices. Govt procurement becomes very important when prices crash due to a glut in production. Nafed was given Rs 29,000cr bank guarantee to massively improve its capacity to do procurements.
≈► Expansion in procurements with MSP: 4.5mT or 18% of total pulses production and 2mT of oilseeds, were procured in 2017-18. These are not limits but based on need. Govt may extend this to coarse cereals.
≈► Expansion in procurements without MSP: selective interventions are done to stabilise markets, eg oil palm, chillies, and turmeric (AP), ginger (Arunachal), areca nut, onions and turmeric (Karnataka), chillies and grapes (Mizoram), onions and chillies (Telangana), potatoes (UP, WB).
Higher price through agri-market reforms๐
Agri-markets cannot be perfect. Many steps are being taken to improve efficiency, competitiveness, and transparency of agri-marketing systems.
≈► APLM Act 2017 is a template for far-reaching reforms in liberalising agricultural markets. States are given the flexibility to tweak reforms. The many States but not all have accepted it.
≈► Govt has worked cooperatively and convinced States to join the National agri-market called eNAM. Launched in April 2016, 585 mandis have been linked and another 400+ will join by 2019. A solid platform is emerging.
≈► 22,000 rural haats are being upgraded to Grameen Agricultural Markets. GAMs provide a nearby physical exchange for agri-produce procured through eNAM or direct purchase.
Lower cost through better input management ๐
Input management will help farmers earn more. Govt says and is doing a great deal in many ways:
≈► Irrigation: Agriculture minister says all 99 major and medium projects under PMSKY (allocated Rs 40,000cr over 3 years) will be completed in 2019, of which 18 are done, and 60 are mostly completed. New micro-irrigation additions have reached 1.05m Ha in 2017-18. It should go up to 1.5 - 2.0mHa per year.
≈► Watershed development and water conservation: 1m ponds have been built under MNREGA.
≈► Nutrients: farmers had to buy in the black market as their entitlement was snatched by sharks in the chemical industry. Urea diversion (35-40% of supply) was stopped though neem-coating, and now there is no shortage of low-cost urea for farmers.
≈► Soil Health Card: testing labs have shot up from 45 to 10,000 labs across the country!! Standards were devised and SHC distributed. Input costs have fallen "substantially" states the minister.
≈► Improved crop varieties: 795 crop varieties were developed by ICAR and distributed, in the last 4 years. Out of these, 495 varieties were tolerant to climate change. 20 bio-fortified varieties were developed and released.
≈► Other measures: increased loan disbursements, help for landless farmers to acquire land, help to set up 2700 Farmer Producer Organisation (benefits conferred as well). 45 Integrated Farming System (IFS) models were developed for small farmers, with emphasis on effective use of resources.
Solarisation of farms ๐
Solarisation of farms incl. solar pumps and farmer-based PV solar, are being pushed in a mission mode under KUSUM Scheme. Generous funding and substantial subsidies (28,000 MW, Rs 48,000cr subsidy for 60% cost) will enable farmers to earn good incomes from low-quality land, etc.
Organic farming๐
Previously organic farming was a cottage industry (ie scattered & small scale). Rs 1000cr funding to States has created 10,000 clusters across the country. Sikkim is the first exclusive organic state and the other NE States and UTs are working hard towards it.
Allied activities for small or land-less farmers๐
Funds and schemes are available for diary, animal husbandry and livestock development; development of water bodies, marine & freshwater fisheries and aquaculture; and collaborative farming like beekeeping, mushroom production, agroforestry and bamboo production. Govt is funding programme for improving genetic makeup of indigenous livestock through scientific breeding.
Agri exports policy๐
It is an opportune time to bring out a WTO compliant agricultural export policy, as India is no longer allowed to give export sops. Govt wants to double exports to $66b by 2022, and focus on high value & value-added agricultural exports and perishables. This is possible as its value addition is low at 15% against 25% & 49% for the US and China. It proposes a financial package for R&D for value addition. Exports controls will not apply to processed items, organic foods and non-essential foods. Pre- & post-harvest management will be strengthened and brought to a high standard through quality regimen, infra and logistics. Reforms like liberalised leasing policy can open possibilities through private sector investment.
https://plus.google.com/100789863972538583352/posts/cBsKdbXn9Jj
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- Artificial rain for drought periods
---------------------------------------------
Artificial rain appears to work as it is used liberally by China, and other countries. Experience in India is unremarkable.
UP is eager to experiment using indigenous technology for artificial rain for improving farming outcomes. Artificial rain technology has been developed by IIT-Kanpur through public funds and costs Rs 55m for 100,000 Ha. This is 50% cheaper. Critical components come from the US.
REPLY 31w - Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM Scheme)
2018 Budget contains Rs 1,40,000cr scheme to solarise agri-pumps and set up solar plants on barren land. Govt will pay Rs 48,000cr into the Kusum scheme over 10 years.
1. New 10,000 MW solar plants on barren lands
2. Solarising of pumps adds capacity of 16000MW. It is divided btw farm irrigation pumps and heavy-duty CAD pumps.
3 Discoms will buy power from 17.5 lakh solar pumps at a higher rate. Farmers can set up twice their pump's KW, so can make a tidy profit.
4. New solar pumps will get 60% direct subsidy, 10% is the farmer's upfront cost and 30% is by bank loans.
5. ISA is aggregating solar pumps requirement to get the best prices
Benefits for Govt--------------------
♦ Kusum will reduce discom losses, and help balance the grid (as pumps demand is flexible)
♦ Saubhagya scheme and Kusum will help reduce diesel imports. Saubhagya replaces diesel in homes and Kusum replaces diesel pumps on fields (1/3rd of all 30m pumps are diesel).
REPLY 31w REPLY 31w - Budget 2018: Opinions M.S. Swaminathan
-------------
Summary: Farmers will be happy with MSP changes. Cooperatives are a great idea. I wish all the best for initiatives on value-addition, organic farming, bamboo, livestock and fisheries. A good amount is being done for rural infra and rural employment generally.
Farmers looking for more money should be happy with MSP if it truly works. Govt may consider adding more foods to the National Food Mission or for child malnutrition. The building of storage infra (warehouses & upgraded agricultural markets) is provided.
Govt is giving Power of Scale protection through SHG, FPOs and cooperatives. This is good. It is able to promote various value-added missions such as organic farming. National Bamboo Mission and the strengthening of fisheries and livestock sectors are also good, as is the benefit given to these workers through Kisan Credit Card.
Lastly, a strong emphasis on rural livelihood infrastructure, irrigation, post-harvest technologies and operation green should lead to rural farm and non-farm employment.
REPLY 30w - How is Modi Govt taking Indian Agri forward?
Opinions M.S. Swaminathan----------------------------------------
Summary: Economic viability or profitability of agriculture is a pre-requisite for sustainable advancement in agriculture - for improved productivity, scientific methods & technology infusion. Modi govt has put the right emphasis on farmer's welfare, which will help to recruit more knowledgeable, enthusiastic and entrepreneurial farmers. It is improving rural livelihoods and rural infrastructure in a determined manner.
Modi govt is increasing/ expects to increase the earning potential of farms and farmers through irrigation, direct selling and better price realization, allied farming and value-addition, etc. Robust funding of fisheries, dairy sectors, bamboo, etc, will achieve much more. Post-harvest technologies are coming and so is private sector investment. The most impactful has been a big hike in MSPs and the hope of good procurement, and public distribution. Agricultural reforms will empower small or marginal farmers and bring the power of scale to marketing and operations.
Micro-irrigation, soil health cards, organic farming, scientific breeding, quality seeds and biomass recycling address issues like climate change, soil degradation, sustainability, biodiversity and waste management. If they work well, they can bring profitability through reduced production losses due to weather & infection, reduced use of inputs, a higher market value of foods, higher productivity, and technology-intensive farming. They will bring employment in agri-R&D and support agri-industries.------------------------------------------------------
We took a holistic approach and did not just look at agricultural advancement or production. Economic viability is necessary for farming to thrive. This means "minimum net income" or profitability.
Attracting youth to farming------------------------------
-- make farming economically viable
-- greater power of scale in production & post-harvest
-- impart knowledge, experience, and entrepreneurship
-- gender sensitive education that brings success
Globally competitive for inputs and production-----------------------------
-- deployment of new technology like biotech & ICT
-- advance in productivity & profitability
Other aspects---------------------
-- stability of farming systems: avoid disruptions
-- sustainability: protect against over-exploitation.
-- biodiversity: preserve the integrity of crops, livestock, etc
-- rural livelihoods: provide essentials and amenities
What has Modi govt done about it?-----------------------------------------
Modi govt recognises that farmer's welfare is a means to achieving agricultural progress. It set a goal of doubling farmers incomes. Good initiatives incl.
☼ Soil Health cards protect the environment, crops and people's healths.
☼ Micro-irrigation has many benefits.
☼ Conservation and development of indigenous breeds will improve the genetic stock of livestock.
☼ e-NAM and Gramin agri-markets are innovative ways of direct selling to retail and bulk buyers.
☼ APLM act 2017 & Agri. Produce & livestock Contract farming services act 2018, warehouse receipt system all help to increase institutional credit
☼ Pulses and nutri-rich millets in welfare programmes
☼ Apiculture, mushroom cultivation, bamboo production, agro-forestry, vermicomposting and agro-processing will create new jobs and additional incomes
☼ Corpus of funds for PMKSY
☼ Corpus for dairy coops, inland & marine aquaculture
☼ MSP on NCF recommendations & assured procurement. Govt has set a minimum but it is often exceeded and ranges btw 1.5 - 2.0 x cost
☼ Loan waivers - perhaps as they are restricted to needy
☼ National Nutrition Mission - will see more offtake of farm produce
REPLY 30w - Progress on National Commission on Farmers 2006 report (or M.S. Swaminathan report)
----------------------------
According to Union Agri minister
REPLY 31w REPLY 30w - Rajasthan wants to shift to modern methods but has funding crunch & structural hurdles to overcome.
- - - - - - - - -
Agriculture is 27% of Rajasthan's GDP. It is the largest producer of mustard, bajra, guar and coarse cereals. It is significant in total pulses, oilseeds, milk production and spices. Agricultural returns are volatile due to fluctuations in rainfall, eg. agri GDP growth:
2013-14 6.8%
2014-15 2.1%
2015-16 0.78%
2016-17 6.3%
Rajasthan is mostly arid or semi-arid (61%) and 35m are in poverty. It has a high percentage of marginal & small farmers (62%). In these farmholds, it is a challenge to even automate with tractors, less said about modern technologies.
Many years ago, Rajasthan tied up with Israel (which has similar climate pattern) for olive plantations. Since then 6 hi-tech "Centres of Excellence" (from Israel & Netherlands) have been established & 3 more are coming:
-- Kota (citrus fruits)
-- Bassi (pomegranates)
-- Jaisalmer's Sagra Bhojhka (date palm)
-- Devravas in Tonk district (guavas)
-- Jhalawar (mandarins)
-- Khemri Dholpur ( mangoes)
-- Chittor (pumpkin)
-- Boondi district (vegetables)
-- Sawai Madhopur (flowers)
Rajasthan is now looking to shift a "sizeable section of middle farmers away from traditional water-intensive farming". It cannot compel farmers with high water use or restrict them from growing wheat. So it wants to give farmers a water-saving alternative and is promoting mixed cropping patterns.
3 “Global Rajasthan Agritech Meet” held between Nov 2016 to Nov 2017 has elicited 1.23 lakh farmers' visits and MOU worth Rs 1,555.83cr.
One state official explains the horticulture in greenhouse scheme, ie. A seasons crop of cucumber gives Rs 10lakh but the cost of production is just Rs 3-4lakh.
Protected cultivation is a package of greenhouses, shade-nets and micro-irrigation. State govt is doing its best to subsidise "protective cultivation", but subsidy amount is not enough to fulfil the no. of applications for the scheme.
Funding is as follows: NHM has Rs 37.5cr budget. A farmer can receive a max of Rs 10lakh or 50% of cost based on 1/2 acre plan. A reasonable size of 1 acre costs Rs 35lakh. 1,500 applications for 5,000 acres were received. At a maximum of Rs 10 lakh subsidy component is just 21%. District quotas further restrict availability, leading to 5-yr waiting lists. Rajasthan has increased the subsidy to 70% and linked them to bank loans. However, NITI Aayog has urged Rajasthan to extend the subsidy component to really make it effective.
https://www.hindustantimes.com/india-news/hi-tech-farming-can-rajasthan-make-the-desert-bloom/story-m4jKdmwjXCpFLDhWCmhMAM.html
REPLY 29w - High farming incomes from speciality crops & activities
-------------------------------------------------
Aromatics sector is worth a sizeable Rs 50,000cr and is growing at 15% pa. Export potential has not really been tapped. Aromatics offer high profits for farmers through cooperation with established brands.---------------
Rice and wheat farming doesn't get more than Rs 300,000 per acre, but herbs and aromatics -- used in medicines and personal care products -- can achieve lakhs per acre. Herbal products are sold to brands like Dabur, Himalaya, Natural Remedies, Pantajali, etc, so these farm products are not visible to common consumers.
Herbs or Aromatics sector is worth Rs 50,000cr and growing at 15%!! Just 6.34 lakh acres or 1.058 lakh Ha is devoted to it. Big brands adopt farmers and increasing area under cultivation. Eg. Patanjali is helping farmers in 40,000 acres. Dahur has expanded its support by 25% or 5000 acres. India has the potential to grow this business to supply domestic and global demand.
Ateesh -- high reaches of UK & HP, used for ayurvedic medicines. Rs 2.5 lakh per acre
Lavender -- converted to oils, dry flowers and other value added. Rs 1.2 lakh per acre
Rattan Jot - Rs 1.1 lakh per acre.
Karu -- Rs 1.5 lakh per acre
Kutki Brahmi
Karanja Shatavari
Kapikachhu Chirayata
Shankhapushpi Rosemary
Ashwagandha Geranium
Tulsi Clary sage
REPLY 27w - Pulses revolution
---------------------
Improved seeds and utilization of rice fallows have brought a surge in pulses production, that has taken India close to self-sufficiency. Eastern India offers enough rice fallow to continue the momentum. Scientists are working on improving pulses production in NE India as it is 60% deficit in pulses. They are also looking at improving quality, eg biofortification, offering good pest control packages.--------------------
Indian agriculture is in the midst of a pulses revolution (besides growth in rice, milk, fisheries, poultry, horticulture, forestry). With production at 25.2mt in 2017-18, India is just 3-5mt short of becoming self-sufficient.
Govt has given quality breeder seeds to farmers but more intense cropping is also contributing. The increasing use of rice fallows means potential exists in growing winter or rabi pulses, such as mungbean, urad bean, lentil, Lathyrus, rajma and pigeon peas.
Around 3 to 3.5m Ha can be brought under rice fallow cultivation in Eastern India, but only 1-1.5m Ha has been exploited. In addition, scientific work has intensified in NE states, as they are 60% deficient in pulses. Scientists have new varieties for Tripura (field peas) and Assam (black gram).
A new goal is for biofortification (eg lentils fortified with iron, zinc, possibly foliate). Another is to provide certified pest control packages, to take farmers away from illegal or banned substances.
REPLY 27w
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