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Key Points from the Agriculture and Commodity Summit 2024

  • January 6, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Key Points from the Agriculture and Commodity Summit 2024

Subject: Economy

Section: Indian Economy and National Income

Call for Increased Private Investments:

  • Urged a Fivefold increase in private investments in agriculture by 2030, targeting of 10%, current is 2%.
  • Emphasis on diversifying farmer income beyond traditional crops.

Focus on Industrial Needs:

  • Farmers encouraged to explore opportunities in meeting industrial needs such as ethanol production through crops like maize.
  • Maize identified as a future crop to meet ethanol industry demand and address climate change concerns.
  • Advocated for the democratization of credit and insurance in farming.

Impact of Formal Credit on Agri Contribution:

  • 10% increase in formal credit could lead to a 1% increase in agricultural contribution to overall GDP.

Investment in Productivity-Enhancing Practices:

  • Stressed the importance of investing in productivity-enhancing agriculture practices using fertilizer, high-yielding seeds, and irrigation.
  • Emphasis on sustainable practices to ensure long-term food security.

Challenges Posed by Climate Change:

  • Lack of funds and the impact of climate change

Role of Women in Agriculture:

  • Calls for providing women farmers with access to technology and recognizing them as entrepreneurs.

Easing Access to Finance:

  • The fintech agriculture ecosystem expected to add $100 billion to India’s GDP in the next five years.
  • Experts urged the government to be realistic in distributing free food grains through the public distribution system.

Livestock Sector Potential:

  • Industry experts highlighted the potential of the dairy, poultry, and fisheries sectors to provide nutritional security to the malnourished at an affordable cost.

State of Agriculture in India: – 

Pre-1991 (Before Liberalization):

Government Intervention:

  • The agricultural sector in India was characterized by significant government intervention. Policies such as land reforms, minimum support prices (MSP), and public distribution systems were prevalent.

Green Revolution:

  • The 1960s and 1970s saw the Green Revolution, introducing high-yielding varieties of seeds, fertilizers, and irrigation.
  • Increased production of wheat and rice, leading to food self-sufficiency.

Focus on Food Grains:

  • The emphasis was primarily on the production of staple food grains like rice and wheat.

Post-1991 (Liberalization Era):

Economic Reforms:

  • The liberalization policies of 1991 aimed at reducing government control and promoting market-oriented reforms.

Private Investments:

  • There was a shift towards encouraging private investments in agriculture.
  • Increased participation of private entities in the agribusiness sector.

Technology Adoption:

  • Adoption of modern farming practices, including the use of genetically modified (GM) crops.
  • Mechanization and technology-driven agriculture became more prevalent.

Diversification of Crops:

  • Farmers started diversifying into high-value cash crops, horticulture, and floriculture.
  • Increased focus on organic farming and sustainable practices.

FDI in Agriculture:

  • Foreign Direct Investment (FDI) policies were relaxed to attract foreign capital.
  • Joint ventures and collaborations with international agricultural firms increased.

Infrastructure Development:

  • Investments in rural infrastructure, including irrigation, storage facilities, and transportation networks.
  • Introduction of e-marketing platforms and digital technologies.

Government Initiatives:

  • Implementation of schemes like the National Mission on Sustainable Agriculture (NMSA) and Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
  • Efforts to provide better market access to farmers.

Challenges Persist:

  • Challenges such as small landholding sizes, lack of access to credit, and vulnerability to climate change persisted.
  • Issues related to minimum support prices (MSP) and market fluctuations

Post-2020 and COVID-19 Impact:

  • The agriculture sector gained importance during and after the COVID-19 pandemic.
  • Increased focus on self-sufficiency and local production.

Brief overview of key schemes under the Ministry of Agriculture in India:

Pradhan Mantri KISAN Samman Nidhi (PM-KISAN):

  • Aim: Income support of Rs. 6,000 per year to small and marginal farmers.
  • Direct cash transfer to the bank accounts of eligible farmers.

Pradhan Mantri Fasal Bima Yojana:

  • Crop insurance scheme to provide financial support to farmers in case of crop failure.
  • Covers all food crops, oilseeds, and horticultural crops.

Pradhan Mantri Krishi Sinchai Yojana:

  • Focus on improving water use efficiency through efficient irrigation practices.
  • Aims to achieve “Per Drop More Crop.”

Ayushman Sahakar Scheme:

  • Promotes healthcare services through cooperatives.
  • Aims to enhance the role of cooperatives in creating healthcare infrastructure.

E-NAM (National Agriculture Market):

  • An online trading platform for agricultural commodities.
  • Facilitates transparent and efficient online trading.

Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY):

  • Pension scheme for small and marginal farmers.
  • Provides a fixed monthly pension after the age of 60.

Krishi Kalyan Abhiyan:

  • Outreach program to promote best agricultural practices.
  • Focus on improving farmers’ income and welfare.

Soil Health Cards (SHC) Scheme:

  • Provides information about soil nutrient status to farmers.
  • Aims to promote balanced and judicious use of fertilizers.

National Bamboo Mission:

  • Promotes the holistic development of the bamboo sector.
  • Focus on increasing the area under bamboo cultivation and value addition.

Green Revolution – Krishonnati Yojana:

  • Integrates various agricultural schemes to promote sustainable farming.
  • Aims to double farmers’ income by 2022.

Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme:

  • Encourages youth to take up cooperative ventures in agriculture.
  • Provides financial support and training.

Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA):

  • Aims to ensure remunerative prices to farmers for their produce.
  • Involves Price Support Schemes, Price Deficiency Payment Scheme, and Pilot of Private Procurement and Stockist Scheme.

Paramparagat Krishi Vikas Yojana:

  • Promotes organic farming and certification.
  • Aims to improve soil health and conserve natural resources.

National Food Security Mission:

  • Enhances food production and productivity.
  • Focus on increasing the production of rice, wheat, pulses, and coarse cereals.

Pandit Deen Dayal Upadhyay Unnat Krishi Shiksha Yojana (PDDUUKSY):

  • Promotes higher education in agriculture and allied sciences.

Rashtriya Gokul Mission:

  • Aims to conserve and develop indigenous cattle breeds.
  • Focus on enhancing milk productivity and promoting sustainable breeding.

CACP – Commission for Agricultural Costs and Prices:

The Commission for Agricultural Costs and Prices (CACP) is an attached office under the Ministry of Agriculture and Farmers Welfare. Established in 1965, its primary role is to recommend Minimum Support Prices (MSPs) for major agricultural crops to ensure a fair return to farmers for their produce.

Key Functions of CACP:

  1. MSP Recommendations:
    • CACP recommends MSPs for various crops based on factors such as the cost of production, market prices, and agricultural input prices. MSP is the minimum price at which the government procures crops from farmers.
  2. Cost of Cultivation Studies:
    • The commission conducts studies on the cost of cultivation of various crops, taking into account factors like input costs, labor, land, and other related expenses.
  3. Price Policy Formulation:
    • CACP formulates and recommends price policies that aim to promote agricultural production, encourage farmers to adopt modern technology, and ensure remunerative prices.
  4. Market and Price Analysis:
    • The commission analyzes market trends, price movements, and other relevant factors affecting agricultural commodities.
  5. Interactions with Stakeholders:
    • CACP engages with various stakeholders, including farmers, policymakers, and experts, to understand the challenges and dynamics of the agricultural sector.
  6. Reports and Publications:
    • CACP prepares reports and publications on agricultural price policies, cost of cultivation, and related topics. These documents serve as valuable resources for policymakers and researchers.

Minimum Support Price (MSP): MSP is the minimum price set by the government at which it procures crops from farmers to support their income. The objective is to provide farmers with a fair and remunerative price, ensuring stability in agricultural production.

economy Key Points from the Agriculture and Commodity Summit 2024

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