UPSC EDITORIAL ANALYSIS : Filling The Void In Farms

Source: Indian Express

• Prelims: Indian Economy(GDP, BOP, GVA, Economic reforms, agricultural reforms, PLI scheme etc

• Mains GS Paper III: Indian economy and issues related to planning, mobilization of resources, Effect of liberalization on the economy etc

ARTICLE HIGHLIGHTS

• In the recently formed NDA cabinet Shivraj Singh Chouhan is heading the Ministry of Agriculture and Farmers Welfare (MoA&FW) as well as the Ministry of Rural Development.

• The share of agriculture in total Gross Value Added (GVA) of economy has declined from 35% in 1990-91 to 15% in 2022-23

INSIGHTS ON THE ISSUE

Context

Agriculture in Madhya Pradesh under Shivraj Singh(former CM):

• Madhya Pradesh saw an overall GDP growth of 7 percent per annum Agri-GDP growth of 8 percent per annum during 2005-06 to 2023-24.

• Agri-GDP growth of 8 percent per annum during 2005-06 to 2023-24.

• Madhya Pradesh growth has been higher than the all India GDP growth of 5 percent Agri-GDP growth of about 6 percent over the same period.

• Agri-GDP growth of about 6 percent over the same period.

How can all-India agri-GDP growth be increased by more than 5 percent per annum and augment farmers’ incomes?

• Recognise that agriculture is not just production of food, but a full food system that stretches from production to marketing to consumption.

• Increase productivity in the face of climate change which is increasingly threatened by extreme weather events.

• Invest heavily in creating climate-smart agriculture, from heat-resistant varieties of various crops to farming practices that give “more crop, per drop” of water.

• Raise expenditure on agri-R&D and extension to at least 1 percent of agri-GDP, up from current levels of less than 5 percent. The marginal returns are above 10 times as per latest research.

• The marginal returns are above 10 times as per latest research.

• Ensure that farmers have access to the best technologies in the world as well as the best markets for their produce. Without that, neither productivity is going to catch up with global standards nor are farmers’ incomes going to increase significantly.

• Without that, neither productivity is going to catch up with global standards nor are farmers’ incomes going to increase significantly.

• To enable farmers to get the best price for their produc Coordination with an inter-ministerial group to keep the prices of food low for consumers. It is this consumer bias in the policy framework that works against the interests of farmers.

• Coordination with an inter-ministerial group to keep the prices of food low for consumers.

• It is this consumer bias in the policy framework that works against the interests of farmers.

• Opening up the export of onion, as Maharashtra onion-belt farmers are dead against the export bans which have hit their incomes badly.

• Opening up of common rice exports with a 15 to 20 percent export duty to recover the cost of fertilizer and power subsidies inherent in rice production.

• For high-value fruits and vegetables, milk and milk products, fishery and poultry coordinate with other ministries to build value chains from farm to mega cities and foreign markets So that farmers get the best prices possible. Inviting organized private sector or cooperatives/farmer producer companies to build these value chains is necessary. They can be incentivised on the lines of the PLI scheme that exists in industry, Example: India built value chains for milk in the domestic market on the lines of the AMUL model. This will increase the farmers’ share in the consumers’ rupee.

• So that farmers get the best prices possible.

• Inviting organized private sector or cooperatives/farmer producer companies to build these value chains is necessary.

• They can be incentivised on the lines of the PLI scheme that exists in industry,

• Example: India built value chains for milk in the domestic market on the lines of the AMUL model.

• This will increase the farmers’ share in the consumers’ rupee.

• Taking over the TOP scheme (tomatoes, onions and potatoes) and fixing their value chains so that producers and consumers both can benefit.

Way Forward

• The fertilizer subsidy amount should be transferred to MoA&FW. The fertilizer subsidy of Rs 1.88 trillion (revised budget estimate of 2023-24) is more than the total budget of the MoA&FW. The fertilizer subsidy is parked in the Ministry of Chemicals and Fertilizers, which has little to do with farmers.

• The fertilizer subsidy of Rs 1.88 trillion (revised budget estimate of 2023-24) is more than the total budget of the MoA&FW.

• The fertilizer subsidy is parked in the Ministry of Chemicals and Fertilizers, which has little to do with farmers.

• The policy of fertilizer subsidy, with almost 80 to 90 percent subsidy on urea and about 20-25 per cent on DAP and MOP has massively distorted the N, P, and K balance. The ratio of grains to fertilizers, which used to be more than 10:1 in the 1970s, has dropped to about 2:1. Plants do not absorb more than 35-40 percent of the nitrogen being supplied to them through granular urea. The rest is emitted in the environment as nitrous oxide which has 273 times the carbon equivalence for a 100-year timescale. This subsidy needs to go directly to farmers’ accounts, and fertilizer prices need to be freed.

• The ratio of grains to fertilizers, which used to be more than 10:1 in the 1970s, has dropped to about 2:1.

• Plants do not absorb more than 35-40 percent of the nitrogen being supplied to them through granular urea.

• The rest is emitted in the environment as nitrous oxide which has 273 times the carbon equivalence for a 100-year timescale.

• This subsidy needs to go directly to farmers’ accounts, and fertilizer prices need to be freed.

• Digital fertilizer coupons can be issued to farmers of equivalent value and they can be given the freedom to use chemical fertilizers or bio-fertilisers or opt for natural farming. It will need careful planning, which needs to start now so as to carry out this big-bang reform next year.

• It will need careful planning, which needs to start now so as to carry out this big-bang reform next year.

• A special package for Punjab-Haryana is needed to save them from ecological disaster.

• MP is an example of doubling the contribution of horticulture in its value of agriculture and allied sector.

QUESTION FOR PRACTICE

• Do you agree that the Indian economy has recently experienced recovery ? Give reasons in support of your answer.(UPSC 2021)

(200 WORDS, 10 MARKS)

Editorial Analysis – 24 June 2024[PDF]