1. Agriculture Final Flashcards
Ashok dalwai commitee Recco specifically for agri marketing
1, agri marketing in concurrent list
2. Physical infra creation
3. Price info dissemination campaign
4. Creation of FPO
5. Agriculture should be treated as an enterprise
E- tech in aid of farmers . Significance
- Precision agriculture and more productivity - soil sens by IIT Bombay
- Reduced labor cost - swarm robots for applying pesticides
- Customised solutions - agropad by ibm - real time analysis using AI
- Resilient agri - disaster preparedness
- Supply chain mgmt - block chain - trustworthy digital record
- Market intelligence - DIGITAL MANDI by IIT Kanpur
- Credit access - agrifintech - jaikisan, sammunati
- Social media - iFFCO I Mandi — a social commerce app
Kisan drones - surveying, spraying, pollination
Challenges in adopting e tech in india
FARMER
2. Digital poverty ( india inequality report 2022 31%, 67%)
4. big indian grain drain
4. Unemployment - machines will replace human
FAO 2022 report - automation might exacerbate inequality if tech not accessible to small and medium farmers
Farm land
1. fragmented land - economies of scale
Other issues
1. lack of formal credit ( RBI internal working group report - 40%)
2. R&D - 0.4% of agri gdp
Steps taken by govt to promote e-tech in farmer
- E-nam — pan india trading portal
- Village resource centre—isro’s satellite date to reach out to villagers
- Krishi Vigyan Kendra’s - pilot project in Kerala using drones to spray pesticides
- Digital public infrastructure for agriculture, Agriculture accelerator fund
Wf for e tech in agri
- Krishi Vigyan Kendra’s - DAAS
- FPO
- Small framer large field - small farmers of the area to organise themselves into a group and synchronise e-tech operations
As per Ashok Dalwai - agri startup’s should become pivot of transformation and democratisation of technology
Issues with fertiliser subsidies in india
1- distortion because of underpriced urea
- diverted to industrial use
- black market and smuggling to Nepal, Bangla
- import allowed only through 3 govt controlled agencies ( canalisation)
- Benefits rich farmers ( ES 2015- product based subsidy Is regressive )
- Externalities
- NPK- 4:2:1 - 8:4:1
- eutrophication
- bio magnification - Government
- Fiscal burden - per bag of urea costs a subsidy burden of around 2700 to govt
- ** opportunity cost** - prof Ashok Gulati - rs 10 lakh invested in farm research 328 people out of poverty , same amount in fertiliser subsidy 26 people out of poverty - weaponisation of global supply chain - feedstock import becoming costly
What are the recent steps taken by govt regarding fertiliser subsidies
- Pm pranam
- Pm krishi Samruddhi Kendra’s- model fertiliser center
- Pm Bharathiya jan urvarak pariyojana
- Nano liquid urea
Define fpo
FPO is a legal entity ( cooperative, company, society) where farmers are the primary shareholders and they come together as a collective to improve their bargaining power
Benefit of FPOs for transportation and marketing
- Collective strength of farmers - bargaining power
- inputs - economies of scale - drones
- Credit - Grants from sfac, nabard etc
- Professional management and leadership - BOD
Case study - Krishak Bharath FPC
What are the issues with FPOS
- FPO
- long time to mature
- poor farmers — lack of patient capital
- enabling org ( NGO, relegious institutions) - not market facing
- lack of professionals in rural space
- no integration of FPO within same area / same produce - Farmers
- the shift from production to marketing —not easy
- few farmers engage with fpo - hardly few with > 1000 members - Social
- caste cleavage- BOD captured by dominant caste
- gender
4, administrative
- only 5% FPO given grant under EGCG fund of sfac in last 7 years
Initiatives by govt to form FPO s
- Central sector scheme to form 10000 FPOs - grant + matching equty
- EGCG fund by SFAC
- Producers org development fund by NABARD
Way forward for FPO
- Govt policies
- JJ IRANI commitee - special act for FPO and delinking it from comapanies act
- training program via MOOC
2, market
- patient capital
- professional ( agri university)
- Farmers
Social divide
Difficulties in agri export
- Less processing - sun drying and pickling
- Cold chain and logistical infra
- Transport - land locked production centers to ports. Turn around time
- Regulatory cholestrol- fssai, apeda, export inspection council
- Quality - alphonso mangoes, poultry
- Less branding - kashmiri apples, darjeeling tea in comparison to Washington apple or Californian almonds
- Packaging
- Subsistence farming
Steps taken by govt to import exports
- Agri export policy 2019
- Transport and marketing assistance ( reimburses a certain portion of freight)
- Apeda, tobacco board, coffee board
- Trade infra for export
What are the benefits of millets
- Human
- diversification- proteins , micronutrients and dietary fibers
- low glycemic index
- anemic - biofortified pearl milet
- hidden hunger
- food security - good after 10-12 years of growing also - Economic
- low investment crop - economic security
- animal fodder
- value addition + export opportunities ( millet dosa mix, millet noodles) - Agronomics
- drought resistant - jowar in Rajasthan staple diet
- arid + semi arid
- short growing season- little millet in 70 days
- intercropping - productivity increased - Env
- resistant to pest — so less use of pesticides
- retain soil fertility -
- less carbon footprint- less consumption of water
-allelopathic features - prevents growth of weed
Concerns regarding millet prod
- Production
- reduction in area
- laborious processing
- limited marketing - Social
- lack of awareness- orphan
- easy availability of other crops - Policies
- msp only for ragi, bajra , jowar
Importance of animal husbandry
Livestock sector contributes to 25-30% of agri GDP ( NSSO 70th round )
- Farmer
- income for farmers ( 15% )
- agri use ( ex: bullocks ) - Economy
- major producer of milk , egg, meat
- leather ( es- job elasticity )
- employment for rural women ( oxfam : 90% diary handled by women ) - Envt
- manure - Social security
- insurance against crop failure - Nutritional security
- proteins from milk, egg, meat
Challenges in animal husbandry
- Highly fragmented - 80% own less than 4 cattle
- Fodder shortage combined with fodder inflation - Nov 22 fodder inflation of 30%
- Low yield - cia world fact book 50 lakh, 5 times, 13 crore
- Less credit - only 4-5% of total institutional credit flowing into agri
- Livestock disease - lumpy skin disease, avian influenza
- Apathy towards assisted reproductive techniques
- forward linkages - chilling infra
- agri census 2019 - redn in indigenous breeds
- 1 lakh registered veterinarians for a livestock population of 530 million
- Global warming— methane enteric fermentation
Steps for animal husbandry
- Rashtriya Gokul mission
- National livestock mission- entrepreneurship devp and breed improvement
- National animal disease control prog - brucellosis, FMD
- E Gopala — breed improvement market place
Wf for animal husbandry
- Awareness about indigenous breeds - ex: Manda buffalo- parasite resistant
- R&D- ultrasound technique for better quality meat
- Effective value addition
Challenges faced by fisheries sector
- Access to quality seed and feed for fish farming
- poor quality boats, bottom trawling, purse siene nets traps fish eggs and small fishes
- Cold storage facilities
- climate change, hypoxic zones
- Lack of regulation of inland harvesting of fish - no code of conduct for leasing of water bodies
Norway fisherman per catch per day - 250 kg
India - 4-5 kg
Pm Matsya Sampada Yojana
- Technolgies - recirculatory aquaculture system, biofloc, cage cultivation
- Catch to consumer - post harvest
- Startups and incubators
- Exports, value addition, MPEDA
- Converging existing schemes - pm kisan sampada yojana, NRLM etc
- Specific areas - arid and alkaline- j&k, ladakh, north east
- national platform for E marketing and e trading
Mpeda came up with shaphari scheme - fisheries production certification
Fisheries and aquaculture development board
KCC for fisherman
Issues with MSP
- Government
- open ended procurement - huge subsidy budern 2.87 ( 22-23)
- meant to be floor price, but ceiling price due to politicisation
- regional disparity in procurement ( Punjab , Haryana vs north east )
- opportunity cost - reduced fiscal capacity to invest in farm productivity - Farmers
- awareness - Shanta Kumar commitee only 6% aware
- a third sold below MSP - unable to meet quality stds - Society
- cereal centric diet - Environment
- water guzzling crops
- depletion of soil nutrients
- monocropping - Economy
- wto amber box subsidy
- higher MSP - food inflation ( price increase without any value addition)
Way forward for msp
- Price deficiency payment system - Pm Aasha ( msp- selling price )
- Decentralised procurement ( Shanta Kumar commitee ) by states
- Pvt players - better storage and grading facilities
- Better market intelligence and better info dissemination for better crop planning by farmers
- Promote other risk avoidance methods like FPO , contract farming etc.
Different type of subsidies to farmers
Indirect subsidy
Es 2015 - regressive, market distortion and leakages
- input subsidy
- Fertiliser
- power and irrigation ( unmindful use , soil, virtual water exports, poor state of discoms) - Price subsidy
- msp - Farm loan waivers
- Export subsidy for sugar ( now discontinued after wto dispute)
DIRECT SUBSIDY
- pm Kisan
Economic survey 2015 - DBT through JAM trinity has the ability to wiping off tear from every eye
Demerits of farm loan waiver
- Fiscal deficit
- Short term. Real agri crises
- What about pvt debt
- Moral hazard
- Populist tool ( ashok gulati)
- Niti ayog report - 3/4rth of farm loans for consumption instead of meeting agri demands
- Waivers benifit the rich
- Banks reluctant to lend
- Banks stop making profit
- Delay in releasing fund - bureaucratic red tap
Challenges faced by FCI
- Rice and wheat
- Transit and pilferage loss of last 4 years could have fed 82 mn indians for 4 months
- 2.87 lakh crore in 22-23
- National small savings fund
- 40 20 26 10 (mn tonnes 2019 business standard report )
- No liquidation policy for excess grain stock
- Economic cost of fci (msp+ procurement incidentals + distribution cost) increasing, central issue price is still the same