******Diversify cropping

ZBNF
Horti
millets
organic
integrated farming

ZBNF ZBNF = Zero budget natural farming

WHAT?
Its is Natural farming technique with cost of production = 0 as no money spend on inputs
The movement in Karnataka state was born - leader Mr Subhash Palekar (Padma shri awardee)

Conclu
The Economic Survey mentioned (ZBNF) along with Cow Farming and how these “climate friendly”
agricultural practices can enable “elimination of chemical pesticides” and restoration of soil
organic matter and fertility to achieve “Evergreen revolution”.

The “four wheels” of ZBNF are ʻJiwamritaʼ, ʻBijamritaʼ, ʻMulchingʼ and ʻWaaphasaʼ

FEATURES? (BJSWA) - BISWA

Bijmitra -( Seed )
seeds treated with cow dung and urine;
Jiwamrita - Bio - Fertz
fermented mixture of cow dung and urine (of desi breeds), jaggery, pulses, flour, water and soil
from the farm bund
Soil mulching
Covering the plants with a fallen leaves- conserve soil moisture and keep the temperature
around the roots at 25-32 degrees Celsius, which allows the microorganisms to do their job.
replenishing local species of earthworms – increase organic matter in the soil
Waaphasa- providing water to maintain the required moisture-air balance
contours and bunds – to preserve rain water
replenishing water bodies such as ponds – water availability during dry spells
Special ʻAgniastraʼ, ʻBramhastraʼ and ʻNeemastraʼ - bio-pesti
again based on desi cow urine and dung, plus pulp from leaves of neem, papaya, guava and
pomegranates for controlling pest and disease attacks.

How diff than organic farming

involves addition of large amounts of manure, vermicompost and other materials hence
expensive

Mixed cropping is the key to recover the cost of production:

 The farmerʼs have to practise mixed cropping, the cost of main crop is recovered by the sale of
cash crops that you sow alongside.
Also, it is about using organic manure,” It takes time but ultimately yields positive results.
One should start by devoting small portion of land to organic farming as in the first couple of
seasons the yield is low in comparison to the one sprinkled with chemical fertilisers.

Challenges
Cost of labour for collection of dung and urine,+ inputs used in preparation of Jiwamrita, Neemastra
or Bramhastra ….
Keeping cows is also a cost - for urine and cow dung
if ZBNF is practiced in isolation - the crop grown would be vulnerable to attacks by insects and
pests from other field
It is where the government should step in

Advantages
Cost less -
Profits in most areas under ZBNF were from higher yield and lower inputs bcoz no fertilizers
and pesticides are used.
Enviro
Sustainable The planting of multiple crops and border crops on the same field has provided
varied income and nutrient sources
reduced use of water and electricity,
SPS —> BOOST TRADE
etc….

Govt efforts:
Many state governments, including Kerala, Karnataka etc have openly supported ZBNF after studying
its efficacy.
Andhra Pradesh trying to fully embrace (ZBNF)-to cover all farmers by 2024
GOI- provides funding through the Rashtriya Krishi Vikas Yojana and Paramparagat Krishi Vikas
Yojana.
Budget 2019

Organic
**Millets ; Pulses ; Agro climatic farming

AGRO-CLIMATIC PLANNING
encourage farming pratice suitable to local climate and physiography of the region.
Divisions
climate
soil characteristics
water availability
terrain

MILLETS

Millet is a common term to categorize small-seeded grasses that are often termed nutri-cereals
which includes jowar, sorghum, ragi, etc
2019 as International Year of Millets

Significance of this move:

Promotion of production and consumption of millets
dh d ii h ff f li t h i l
 targeted hunger and mitigate the effect of climate change in long run.

Benefits of Millets:
An important staple cereal crop for millions of small holder dryland farmers across sub-saharan
Africa and Asia
Nutrition - higher level of protein e.g. can remove anaemia (iron deficiency)
Help tackle health challenges such as obesity, diabetes and lifestyle problems as they are gluten free,
have a low glycemic index and are high in dietary fibre and antioxidants.
Income and livelihood -
Itself is less affected by climate change - backbone for dry land agriculture.
Mitigate the effect of climate change - need less water
Can be used as fodder, biofuels and brewing

PULSES

countryʼs pulses output is estimated to be down at 23 million tonne in the 2018-19 crop year (July-
June) from 25 million tonne in the previous year.
Government has decided to enhance the import limit on Tur Dal from 2 lakh metric tonne to 4 lakh
metric tonne for the year 2019 – 20 from Mozambique

IMPORTANCE OF PULSES??
food and nutrition security – protein
healthy soil and climate change mitigation – nitrogen fixing properties

STATISTICS??
India = largest producer, consumer, importer of pulses
20% of area under foodgrains
10% of total foodgrain production

CHALLENGES??
0 import duty -> cheap -> loss to domestic farmers
volatility
low yield, vulnerability to pests, disease
poor availability of inputs – seeds, bio-pesticide, micronutrient like zinc

GOVERNMENT INITIATIVES?
Committee under Chief economic advisor Arvind Subramaniyam – tackle shortage of pulses
Hike in MSP
National food security mission

WAY FORWARD?
Pulse insurance – losses due to unseasonal rains, natural calamities
Sustainable food systems
******Food Processing - See PYQ and get more info
Facts
Indian Food Processing Industry has grown at 11% growth rate, which is 2X the global. (2018)
However, exports share in global exports -only 2%
Govt Initatives
Ministry of Food Processing Industries (MoFPI) launched Centrally Sponsored ʻPM Formalisation of
Micro food processing Enterprises (PM FME) schemeʼ as part of Atmanirbhar Bharat Abhiyan
Sampada yojana
Mega food parks
ToAD
4 days program - World Food India 2019 (since 2017 - biennial )
Infra status..
Other..
Road development
Capital provisions
...

Adv
post-harvest losses reduce

Location, Upstream & Downstream Req., Supply Chain Mgt

Examples

Location
Chittor, AP - 1st Mega Food Park
Leading producer
Near to Tirupati - Demand
NH connectivity
Equidistant from Chennai & Blor

Backward Linkages
AMUL - Cooperative in villages to collect milk
Starbucks - Own coffee plantations in Central America

Forward Linkages
Ekart Logistics - Flipkart's own courier service
Dominos - Own vehicles

FPIs - Significance, Scope, Challenges

FACTS
Only 2% of V&F get processed in India, while this is as high as 85% in Malaysia

SIGNIFICANCE

Consumers
Nutritional security
Horticulture, allied industries ll grow
Processing add shelf life to fruits & vegetables, can be significant for distribution
Food Inflation limits bcs of
Disintermediaries
Reduction in wastage of perishables

Rural Development
Farmer's income rise
Expanding FPIs - act as an assured market - Incentivise farmers to grow more
Crop Diversification
Agri- Processing Cooperatives
Eg. AMUL
Better Price realization for farmers
W E
 Women Empowerment
Rural Employment
From ancillary activities as well
Helps to tackle
Disguised unemployment
Rural outmigration

Forex inflow
Export potential
Eg. Japanese firms in India exporting packaged shrimps

SCOPE
India - 2nd largest producer of agri produce
Geo. Advantages
Coastline - huge
Soils - all major varities
Climatic conditions - Diverse
Indiaʼs location
Demographic Dividend of India suits labour intensive nature of FPIs
Gvt Policies - Favourable env. to invest in FPIs
Gvt Policies
100% FDI in FP sector is allowed
Continuously improving Ease of doing business ranking
Model Contract Farming Act
New domestic market demand
Young population
Nuclear families
Urbanization
Consumerism
Increasing disposable income

CHALLENGES

Supply Chain Bottlenecks(end to end)

Raw material -
Expensive
Intermediaries like APMC Act
Lack of integrated cold chain infrastructurecausing wastage of perishables
Uniform Quality
Credit for inputs
Farm mechanization
R&D
 Economies of scale - Not tapped
Small scale nature of Indian FPIs
Cluster culture is yet to fully developed
Skilled manpower- Lacking
Very few universities providing special cources
Eg. Food engineers, Production Manager etc
R&D - Lacking
To develope product as per market requirement
Eg. Packaging, food texture etc
Crucial to appeal foreign consumers. Eg. Khakra, Sasosa etc.
Quality check - Improper
Due to lack of food testing facilities
Eg. EUconsignment of mangoes returned
Logistics facilities - Poor
Transit delays and damages
Raises cost - as it is 13-14% of GDP, while developed countries only have 8%
Organized retail- Lacking
To provide smooth last mile connectivity to consumers
Eg. Dominos
FDI in multibrand retail is desired

SUGGESTIONS
Mega Food Park (local crop and climate based)
One district one product
FDI in multibrand retail is desired
******New farm bills and MSP issue
Farmers Agreement - of Price Assurance and Farm Services Act, 2020 - CONTRACT FARMING ACT
the Farmersʼ Produce Trade and Commerce Act, 2020; - APMC Act
the Essential Commodities (Amendment) Act, 2020

Way ahead
Release some land from rice and wheat to other crops, pulses, oil seeds etc ; even to some
industries and manuf
150million hac --> 300 million tonn
China --> 100 million hac --> 600 million tonn
Cess paid to Haryana and Punjab and other states has to be given in different manner --> for
infra, climate supporting agri, etc
Reduce urea subsidies --> promote other
Give as per NPK
Direct payment to everybody --> Pak and China has done it
Use savings back for tech and infra
Use cautiously -->
MH --> 80k cr (in 10 years) but cotton cultivate increased by 5%
Gujarat --> 40k cr --> increased cultivated area by 67%
Hence less leakage and right spending area is imp
Need 80k cr for Fasal bima bcoz of climate vagaries --> Drought is inevitability
World development report --> 2-3 times more potential to remove poverty and improve quality
of life - by right farming practices (from backward to forward linkages)
China's was 3 times
Makes politically sound strategy
But political GDP is 4 times the economic GDP of agri (bcoz 60% popu)
1. The Farmersʼ Produce Trade and Commerce Act, 2020; - APMC Act
 2. Farmers Agreement - of Price Assurance and Farm Services Act, 2020 - CONTRACT FARMING ACT
CONTRACT FARMING ACT

CHALLENGES?
Legal
• stockholding limits under essential commodities act 1955 - discourage buyers to enter
into contract
• lack of uniformity among state laws
Contract enforcement
Companies - exploitative contract
Farmers - Double contract (or Sell outside if more price) or
Farmers may divert inputs supplied on credit to other purposes, thereby reducing
yields
Contract enforcement - judicial delays
Farmers
• promote regional inequality – most beneficial in agriculturally developed areas (Pb, TN)
farmer don't grow of his choice - no food crop - if crop fails?
Companies
post harvest conflict between farmer and company over quantity/quality
Buy from outside - if less price
Enviro
• promote monoculture farming
Other provision
Contract farming to be outside APMCs‟ supervision.
Dedicated dispute settlement mechanism for quick disposal of disputes.
Price protection to farmers, and penalizing provisions for breach of contract from either side.
Bar on transfer of ownership of farmer‟s land to the contracting companies to protect farmers.
Non-application of stockholding limits on agricultural produce purchased under contract
farming.

Measures needed further:-

Foster more competition: (for both)
Sponsoring companies may be unreliable or exploit a monopoly position.
Contracting firms can exploit this situation to their advantage by offering lower prices to
farmers.
Encourage softer means for enforcement:
Incorporating risk-sharing mechanisms in contracts,
incentive schemes,
repeated contracting and renegotiation options, and
simplified and transparent contract terms would help in contract enforcement.
Quality bad due to weather.. certain min should be ensured
Government caneducate farmersand make them more aware about contract farming and model
contracts.
Farmers sometimes do not understand contract specifications like the quantity and quality to
be produced, or the effect of price change. Buyers may penalize farmers.
Delay in payment of produce
Information repository of farmers and contracting firms. Info about both - past record etc - all
terms of contract
 3. Essential Commodities (Amendment) Act, 2020

MSP
History
When food crisis in 1960s —> to promote certain crops and increase productivity (Now not much
relevant)

Impact
Distorts prices
Affect crop preferences - agro-climatic zones
Cant export - as giving subsidy and exporting - against WTO
3 lakh crore bill pending
Huge food wastage
Particular states benefits
Way ahead
Like milk - de- regulated and liberalised on prices and markets
C Rangarajan committee recommendation
******NFSA National food security act -
Facts
Food subsidy allocation - 1.8 lakh crore this year
FCI already has due of 1.8 lakh crore

NFSA = MSP + PDS

Fact
Defn of MSP (+working), PDS(+working), Food security (FAO)
MSP
Issue of MSP
Crop distortions
Climate effect - specific crops
Benefits specific area and large farmers more
Small farmer can go to FCI - but have to bear transportation cost + rejected if poor quality
Food wastage - heavy procurement
Food inflation - reduce market supply + MSP increases food price
International...
Way ahead
MSP on other crops too (oil seeds and pulses)
PM AASHA
Improve procurement (not all is procured- if godowns full)
Decentralised procurement (e.g. Chattisgarh - pulses procured and first one to introduce into
PDS)
Helps in reduce transport cost
Better procurement and diversify
FCI reform
Shantakumar committee recommendation
Improve procurement
Improve storage and transport facility
Focus more on 2nd GR states (like Bihar, Assam etc)
Price deficiency payment (defn - adv- limitations) (bhavantar Bhutan yojana)
NFSA Act 2013
Covers = Priority HH (25kg per family and 5kg/person) + Antyodaya HH (35kg/family)
=67% of population (poor only 30%)
Why
Inclusion and exclusion error —> canʼt afford exclusion error
Huge procurement by MSP —> Need to give or else huge storage cost and wastage
Underserving have more savings —> can spend, invest and consume —> economy grows
States which followed high TDPS —> leakage and black-marketing reduced (no incentive)

PDS
Issue
Leakages (from FCI to PDS(max) and PDS to customer)
Efficiency in supply
Fake ration cards
WHAT CAN BE DONE TO REVIVE PDS SYSTEM??
Leakages (by below —>( chattisgarh 40% —> 5%)
(End to end tracking) and door step delivery
GPS tracking of trucks
CCTV in godowns
all weather roads -> faster transportation -> reduce wastage
Supply
de privatisation of ration shops (fair price shops) (in TN)
putting gram panchayat, SHG, van suraksha samiti in charge of ration shops (good n in
TN, Jharkhand seen)
Ration card —> Barcoded (Chattisgarh) or Aadhar linked ( not much successful )
social audit for accurate targeting of beneficiaries
DBT
Case study - Pondi and Chandigarh
Food coupons like in US
Strict
stringent punitive action
PM AASHA
PSS (physical) Price support scheme- oilseed, pulses, copra - by NAFED, FCI
PDP - oilseed (directly in account)
Stockiest scheme (private-15%)- oilseed (when below MSP)

One nation ONE RATION CARD

News
Recently, central Government has given states and Union Territories June 30, 2020 deadline, to roll
out the ʻone nation, one ration cardʼ system.
*Food grain management in India
******Tech use in agri -
Q. USE OF TECHNOLOGY IN AGRICULTURAL SECTOR??
digitization of land records easy credit, insurance
Land rights to tillers (like guj tribal)
GIS
• internet and sensors = soil moisture, nutrient level,T, farming equipment
Fish Cryobanks - fish sperms of desired species to fish farmers.
• tracking of farm produce = reduce wastage
e-NAM etc...
• technology = automation, decision support system, agriculture robot
In GUj (2000) —>Allowed BT-Cotton - it spread all over 90% of cotton land. Export of raw cotton grew
from 10$ million in 2000 to $ 4000 million in 2012.
*****Agri in short
It Rained.
Soil became wet.
So did the Farmer's Eyes.

Facts
Agri minister was asked in Parliament - about Defn of farmer and how many are there?
Failed to answer - but under PM Kisan- those people will get benefit who owned cultivable land.
More than half the agricultural households in the country have outstanding debt. Their income can
be just enough to repay what they borrowed - NABARD study 2018
Agricultural income is not taxed with 3k cases showing agricultural income of ₹1 crore and more in
the last seven years.
If agri low —> Rural demand low --> manuf sector low
Tractor sale — down by 15%
2 wheeler - by 15%
The real finance minister is monsoon in India
FCI is the nodal agency under Ministry of Consumer Affairs, Food and Public Distribution responsible for
the procurement, storage and movement of food grains, public distribution and maintenance of
buffer stocks.

Factors affecting cropping pattern of a region:

Economic factors: …Punjab, MSP/FRP ...
Geo-climatic factors:
Socio-cultural factors: It includes religion, customs, traditions etc. For example Sikh farming
community discards the cultivation of tobacco in Punjab despite profitability and favorable
environmental condition
Historical factors: Crops such as Tea, Coffee, tobacco
Political Factors:

PROBLEMS IN AGRICULTURE
Input issue
Fertilizer issue
Pesticide
electricity subsidy -> excessive use of tubewell -> lowering GWT
 “Paani bachao paise kaman”- Punjab initiative - farmer earned 12k rs last kharif by saving
3000 units
access to credit
40% were taken from non-institutional sources such as relatives, friends, moneylenders
and landlords.
monsoon dependent
Seed issue
Output issue
low yield and fertility
30-35% crop yield wasted by pest (nematode) attack (2017)
food wastage (40%)
(NAFED), wasted over half of its onion buffer stock due to poor storage, at a time when
government is importing tonnes of onion to keep prices at check.
weak agro-processing industry
100% FDI allowed in food processing, commerce and retail.
Market
Agri GDP of China in 1980s grew at 7% - bcoz of liberated price control on agri - farmers real
income grew by 15%
Social issue
85% -small and marginal farmers
less income
still 50% dependency
Only 17% of GDP
Tenancy farming
farmer suicide
Also insurance —>old age support and health insurance.
National issue
challenge to meet high demand
Food hunger and nutritional
employment elasticity
Monoculture - In Punjab, wheat and paddy cover 85% of the cultivable area of the State.
Other
Problem of plenty - Cobweb phenomenon
Farmers themselves not selling (hoarding) crops and vegetable to get right/better price

UNIVERSAL POINTS for milk, poultry, livestock, all rainbow revolution, food processing…….
WILL HELP IN
Remove food hunger
Improve malnutrition
Employment gen
Extra income/ assured income- double farmers income by 2022
Crop diversification

Agri manuf services require

Agri, manuf, services require
Manpower, Materials, Machines, Money and Methods
Land, labour, capital, entrepreneurship
R and D, new science and tech
Agri research - Pusa Basmati - yield 5bn$
Backward Linkage and Forward Linkage
Mentorship

Double farmer income

How?
1. FPOs - Farmer producer orgz
2. Think oninput-output
1. Slashing cultivation cost
2. Enhance crop prod
3. Post harvest losses
4. Reforms of agri markets
3. Promotion of high value sector - fruit, vegi, fibres, spices, medicinal and aromatic plants
1. Single Jackfruit tree of Karanataka to yield 10lakh to farmer. It is unique and has great
nutritional value. IIHR(horti research) has taken sampling to multiply it and sell it. Indigineous
variety and organic.
2. Organic farming
4. Support with
1. Dairy production, fisheries - skill devp
1. Fisheries and milk prod- 20% growth in 2017
2. Urjadata - solar farm -
1. 1 acre can have 500 solar trees- space and height is enough - that tractor can move
between them and sunlight from sides (enough).
5. Area based solution e.g. ToAS —> Kondagoan (maize food processing)
1. Value addition of agri produce
6. Changes to the Essential Commodities Act.

Ashok Dalwai committee :PROPOSED REFORMS?

Liberalise definition of farmer
include cultivator, lessee farmer, sharecropper
land reforms
Model land leasing act , Model contract farming act, digitisation of land records
reduce production risks and market unpredictability
drought proofing of highly vulnerable districts, improving post harvest management capacity of
farmers
improve trade regime
adjusting import and export
kl li h
 tackle climate change
improving ground level participation – make Gram Panchayat responsible for agriculture
development

Govt initiatives
RECENT LAWS
PM Kisan
Rs. 6000 per annum
Kalia- 25k for 5 seasons
Ruthu Bandhu
MSP
paddy
Approx 50% return extra from input cost (A2+FL = inputs cost + unpaid cost of family labour)
Think of various schemes
e.g. Insurance - Fasal bima

Farmers in Eastern India

Poverty in Eastern India:

The region is home to the highest density of rural poor in the world.
The average annual farm incomes in eastern states are also nearly half of the national average
Though the region has the best of soils … but Highly vulnerable to climate change ..
Poor marketing facilities-
Low investment in land, water, markets and extension services
Low adoption of improved varieties of crops and new technologies ..
Non-availability and lack of knowledge.
Lack of a legal framework for land leasing
Less Agri-diversification

Drawbacks of loan waivers:

The scheme is prone to serious exclusion and inclusion errors: CAG finding in 2008.
It covers only a tiny fraction of 'deserving' farmers.
It provides only a partial relief to the indebted farmers as about half of the institutional borrowing of
a cultivator is for non-farm purposes.
In many cases, one household has multiple loans either from different sources or in the name of
different family members, which entitles it to multiple loan waiving.
It severely erodes the credit culture, with dire long-run consequences to the banking business.
competitive populism – farmers in other states would also demand loan waiver
credit culture - undermines morale of honest credit payers
Fiscal problem. Damages economy.
 Less money for infra investment esp agri related.

SUSTAINABLE AGRICULTURE

WHAT?
Environmentally sustainable + economically viable

Sustainable techniques:
Water
rainwater harvesting
watershed management
drip irrigation
sprinklers
mulching = conservation of soil moisture technique

Urban agriculture –
indoor hydroponic farms
rooftop farms,
backyard farms and gardens,
community gardens,

ORGANIC FARMING - COMPONENTS

1. Fertz - animal manure, green manure (Manure – plant and animal waste that after decomposition,
release nutrient to the soil)
Sikkim became 1st state to declared organic state

NPA IN AGRICULTURE

FACTS AND FIGURES?

NPA in agriculture = Rs 60000 crore (2017)
Farmers have defaulted only 6% of their credit

IRRIGATION

55% of net sown area = rain-fed

TYPES OF IRRIGATION IN INDIA

canal
tank
tube well
 tube-well
...

CANAL IRRIGATION
even used during indus valley civilization
easy to construct in northern plains due to soft rocks than peninsular plateau
Hence tanks in south India
Popularity decreasing bcoz
high investment required
ignorance to traditional practice

FARMER SUICIDE

FACTS AND FIGURES?

5k+ farmer suicide in 2014 – NCRB
Indebtness - Ranchi — suicide into his well, got a dug well constructed in 2018 on his
farmland at a cost of Rs 3.5 lakh (loan from friends of 50k) (July 2019)
*****Various types of revolution -
Green Revolution

FACTS??
In 1960s – Drought food import from US - PL 480
objective –
increase food production -growing population
modernization of agriculture
High yielding varieties seeds (HYV seeds)
maxicon wheat Norman Burlaug (father of GR in world), MS swaminathan (india)
production increase in rice and wheat
India became self sufficient in food grains in late 1960s.

WHY SPECIFIC REGION TARGETING IN GR??

Punjab, Haryana, western UP
due to drought in 1965, fast food sufficiency required.
Farmers of above region – rich, risk taking ability, large farm size, willing to adopt new tech.

MERITS OF HYV SEEDS?

High productivity
• enabled multi cropping (short life cycle)
• more input intensive-> more employment

LIMITATIONS OF HYV SEEDS?

• Irrigation
• chemical fertilizers
• more input cost (modern machines)

EVALUATION OF GR??

POSITIVES
increase = output, productivity, cropping intensity
india = self sufficient in rice, wheat
farmers, subsistent agro business (dairy, poultry, fisheries)
growth of fertilizer industry
expansion of irrigated lands
tube-well revolution
development of road, market, storage in NW india
no famine after GR
employment generation
income increased
establishment of FCI
 buffer stocks increased

NEGATIVES - economic and ecological anomalies

economic anomaly
regional disparity (confined to Pb, Haryana, western UP, north RJ)
no Agro-modernization in other areas
social (mostly rich/bog farmers benefitted as high input cost)
Crop specific (increased production only in wheat, rice, cotton, sugarcane)
Pulses, millets, oil seeds neglected
ecological imbalances
soil exhaustion (degradation of soil due to continous use)
lowering of water table
salinization (due to continous irrigation in arid and semi arid areas)
water logging
soil erosion (agricultural area expansion by cutting treas)
soil pollution (due to insectiside, pesticide )
over production beyond capacity food wastage

Fisheries ; Blue Revolution

Fact
Post independence the fish production has increased 7 lakh tonne to 100 lakh tonne. It constitutes
about 1% of the GDP and has been growing at about 4% annually
India has become the second largest fish producing and aquaculture industry in the world.
Shrimps, prawns famous

Prospects
India has a long coastline of 7500 km and many rivers, lakes that have remained underutilised for
this sector.
It engages over 1.5crpeople directly and many more indirectly.
All the 3 subsector: Inland, Aquaculture and Marine fishery are growing but at sub optimum level.
A lot of scope for improvement with boost in food processing industry.

Conclu
Huge potential - need for inclusive growth

Importance:
1. Food Security :-
2. Nutrition:
1. Fish is ʻnatureʼs superfoodʼ, an important source of proteins and healthy fats-e.g. long-chain
omega-3 fatty acids, iodine, vitamin D, and calcium.
 omega 3 fatty acids, iodine, vitamin D, and calcium.
2. Crucial for women during pregnancy and lactation.-promote optimal brain development,
regulate the immune system and build healthy bones.
3. Income
4. It will help a great deal in reducing gender discrimination as women are heavily involved in this
sector

Potential in India:
1. Dependence of over 1.5 crore people on fisheries activities for their livelihood.
2. The share of inland fisheries and aquaculture is over 85 percent in recent years in total fish
production.
3. Huge coast line and Inland water as India has a huge network of rivers, streams,estuaries backwater
etc.
4. The aquaculture sector can offer gainful employment to rural dwellers, and particularly rural youth,
who could work in the sector rather than migrate to urban areas or abroad in search of work.
5. Technological advancement: This can help to breed various species, fisheries agriculture pattern.
6. Food Processing Industry:
7. India also have some unique species of fisheries like Prawns, which are in high demand in global
market.

Problem :
*Shortage of quality and healthy fish seeds and other critical inputs.
depletion of fish stocks - IUU
*Most of the fishermen are poor. They are not able to purchase good equipment to improve the
harvest of fish —> NO NEW TECH
*Problem of storage, and transportation.
No proper marketing
Absence of standardization and branding of fish products
*Pollution and Climate Change
*Inadequacy of research and extension service facilities.
*Diplomatic hurdles and miseries to fishermen families esp. for Tamil who cross maritime
boundaries accidentally..Unresolved maritime border is another issue.

Measures taken by Government:

1. Merging all the existing schemes to formulate an umbrella scheme ʻBlue Revolution: Integrated
Development and Management of Fisheriesʼ
2. Allowing 49% FDI in deep see fishing.
3. Strengthening of Database & GIS of the Fisheries Sector,
GPS
Curb Harmful fishing practices like bottom trawler boats,dynamite fishing and thin pore nets that
pose many harms to corals where fishes lay their eggs and breed
4. Amending the CRZ rules and launching the Sagarmala scheme to compliment this sector
5. Encourage increasing private investment, entrepreneurship development, more Public
Private Partnership (PPP) and better leveraging of institutional finance —> SAB REVOLUTION
MEIN PEL DO
MEIN PEL DO
Aquaponics:
It is an emerging technique in which both fish as well as plants complement each other to sustain
and grow.The fish waste provides organic food for plants and plants naturally filter the water, which is
used to replenish the fish tank.

Oil seeds : YELLOW Revolution

Edible oil focus. Issue and way ahead.

News:
The Agriculture Ministry is focussing on boosting oilseeds production over the next four years.
India imports most of its edible oils from Indonesia and Malaysia. Moreover, Malaysia has a duty
advantage over Indonesia under the India-Malaysia Free Trade Agreement.
India cut import duty on crude palm oil (CPO) and refined, bleached, and deodorised (RBD) palm oil
And Moved RBD from free to “restricted” list of imports

Issue with Malaysia

Moved RBD from free to “restricted” list of imports and import duty reduced
25% of of its palm oil export in India —> Now affected —> Said we cannot retaliate because it is
“too small"
Reason - not allow any country to meddle into its “internal affairs”- we will protect our
legitimate rights and interests.

Need for enhancing oilseed production:

Increasing population and Income levels: The per capita consumption of oilseeds is expected to
grow about 22 kg by 2022 from the level of 19 kg per person in 2017.
Increasing import dependence: Huge imports of around 60 percent in 2016-17.
Also, edible oil is among the largest items in Indiaʼs import basket after crude oil and gold.
Challenges in meeting the edible oil demand domestically / Why low production
Stagnation in oilseed production, at around 7 million tonnes /year
o Low remuneration for farmers- despite huge domestic supply deficit, large imports results in
undue pressure on oilseed prices which often slips below the minimum support price (MSP).
o Reduction in area under cultivation- due to relatively lower profitability as against
competing crops like maize, cotton or chickpea.
• Import dependence- processing industry prefers to import refined oil for blending directly with
the oil for repacking and distribution for local consumption.
High seed cost
Low productivity
Rainfed areas - around 70 per cent --> Variability

Govt steps
Ministry of Agriculture has set the following targets to be achieved by 2022-23-
o to take annual production of edible oils from current 7.31 mt to 13.69 mt.
o increasing oilseed production from primary sources from the current 34 mt to 45.64 mt.
PM AASHA - With good price
PDP
Stockist
Physical procurement
Group of Secretaries (GoS) was constituted recently for launching a nationwide oil seed mission to
minimise oil imports.
Government may levy a 2-10% cess on import of crude and refined edible oil to fund the mission.

Measures to boost oilseed production:

A separate project ʻOilseeds in Non Traditional Areasʼ in consultation with States,
Introducing different oilseeds crops in different zones and non-traditional areas like
sunflower and groundnut in the Indo-Gangetic plains
safflower in Gujarat etc
Under the ambit of PDS: Including cooking oils in the PDS
Control the imports
Golden/ SWEET revolution / apicultural

Fact
FAO : Indian ranked eighth in 2017-18 in the world in terms of honey production at 60 thousand
tonnes while China stood first with a production level of 500 thousand tonnes.

News
Impurity by top companies : CSE report

Need
untapped resource
improving agricultural productivity,
enhancing employment generation - in rural and urban -
augmenting nutritional security and
sustaining biodiversity.
Export - forex

Challenges- No knowledge about

Practical training about examination of honeybee colonies.
 Identification and management of bee enemies and diseases.
Acquaintance with apicultural equipments.
Management of bee colonies in spring, summer, monsoon, autumn and winter seasons.
Honey extraction and purification.

Govt initiatives
ʻHoney Missionʼ initiative
To overcome above challenges
(KVIC) has distributed more than 1 lakh bee-boxes among farmers and unemployed youths across
the country in less than 2 years

Way ahead
Beekeeping Development Committee under Bibek Debroy.
need to recognise honeybees as inputs to agriculture and consider landless beekeepers as
farmers.
national and regional infrastructure should be developed for storage,processing and marketing of
****Agri marketing and e-Nam
22,000 rural haats into Gramin Agricultural Markets (GrAMs) + electronically linked to e-NAM and
exempted from regulations of APMCs
e-NAM

WHAT??
launched in 2016 as a pan india electronic trading portel for farm produce
create unified national market for agriculture commodities by integrating existing AMPC markets
Provision
single window service for all APMC related information and services
enable farmers to showcase their produce from nearby market and traders to quote price
 liberal licenses of traders, buyers, commissioning agents by state gov. -
1 license valid across all market in that state
implementing agency – small farmers agribusiness consortium SFAC, under ministry of
agriculture and farmers welfare

WHY WAS IT INTRODUCED??

multiple levy of market fees
different licenses for trading in different APMC
information assymmetry

BENEFITS
Traders etc
physical presence or dependence on intermediary would eliminate
access to larger national market -> choice + quality
Farmers
open price discovery and better return
market size would increase
consumers
NAM would increase competition among traders -> price stability + quality + Low cost
improvement
mandis
electronic book keeping
easy monitoring and regulations of traders and commissioning agents
transparency in auctioning process
eliminate information assymmetry (all information available on APMC website)

CHALLENGES
1. digital literacy
2. farmers habit of selling produce to local produce aggregator
3. APMC attitude
****Horticulture
International Year of Fruits and Vegetables
India 2nd largest producer of fruits and vegetable.
Horticulture sector has performed remarkably in the recent years.

Advantages of horticulture sector:

Short duration
better remunerative prices to the farmers and increase their incomes.
improving the productivity of land,
generating employment,
enhancing exports,
Nutrient rich crops to the people

Reasons: The reasons behind the success of horticultural crop output can be seen under the following
heads –
1- Socio-economic:
Rising incomes of Indians leads to a shift of consumption pattern from food-grains to horticulture
crops.
2- Policy making:
Introduction of horticulture-centric schemes like National Horticulture Mission, setting up National
Horticulture Board etc.
Impetus to food processing industries
3- Technological :
Emphasis on improving irrigation facilities through National Mission on Micro Irrigation.

G t i iti ti
Govt initiatives
CHAMAN-Using remote sensing technology to study soil conditions, land use, weather and cropping
pattern
e.g. Onion is the focus for Maharashtra, Gujarat
GI tag to Horti crops
Price Stabilization Fund Scheme: with a corpus of Rs 500 crore.
National Horticulture Mission for the holistic growth of the horticulture sector through area based
regionally differentiated strategies.
Horticulture Mission for North East & Himalayan States

Challenges before horticulture sector:

Lack of market support.
Paucity of post harvest produces management chain from farm to fork.
Mass destruction of the produce due to lack of infrastructure facilities like warehouses.
Most growers do not get reasonable returns for their produce.
Farmers have been regulated by price slumps + Cobweb
****Land reforms related issues
ANCIENT LAND REVENUE SYSTEM IN INDIA
Akbar's Mansabdari system (Dahsala system)
non-interference + non-exploitative

BRITISH ERA LAND ISSUES

NATIONALISATION of land (means all land belong to government)
INTERMEDIARIES to collect revenue from farmers
MONEYLENDERS (Rent weren't reduced even in worst time)
BONDED LABOUR
FAMINE-HUNGER

AFTER INDEPENDENCE : LAND REFORMS

Abolition of intermediaries like Zamindar
Tenancy reforms
security of tenure
Regulation of rent
Land ceiling and redistribution
land consolidation (Post 1970s)
Co-operativeor collective farming
Model land leasing law - NITI
NOW —> computerisation of land records
AP, MH etc
Innovative method - Haryana
Way ahead
Model Land Leasing Law drafted by member of NITI Aayog contains broad provisions such as:
Formal lease agreement between the land owner and cultivator, and mutual determination of
terms and conditions for use and transfer of rights
Creation of special land tribunals for adjudicating land leasing related disputes.
Facilitation of formal credit, insurance etc. for all tenants including share croppers against
pledging of expected output.
Digitization of land records and registration system as done in Karnataka so as to give
landowners indefeasible titles.
Innovative method
Haryana - portal for farmers to report land and crop details - help them receive the benefit of
several government schemes directly.
The portal has brought the departments of agriculture,revenue, consumer affairs and
science and technology on a single platform for the betterment of the farmers.
The farmers will be required to upload information like
(a)name of crop sown
(b)area under cultivation
(c)cropping month
(d)bank account number and
(e)mobile number.
This system would also make crop damage assessment during natural calamities and
This system would also make crop damage assessment during natural calamities and
disbursal of relief easier.
Also,the information relating to sowing,harvesting season and mandi related information
would be provided on real time basis.
***Agriculture Export
Fact
Agri GDP of China in 1980s grew at 7% - bcoz of liberated price control on agri (we can do by e-NAM
and exports) -
farmers real income grew by 15%

ISSUES :

Agriculture Export Policy, 2018—> USD 30 Billion to USD 60 Billion by 2022 and reach USD 100 Billion in
the next few years thereafter

Objectives
 Strategic Elements include: (think in reverse order)
Stable Trade Policy Regime.
Infrastructure and Logistics Support which include Mega Food Parks, Integrated Cold
Chains,
identifying strategically important clusters etc.
Holistic approach to boost exports by involving organisations such as Krishi Vigyan Kendras
Providing holistic response to Sanitary and PhytoSanitary (SPS) and Technical Barriers to
Trade (TBT).
Reforms in APMC Act and streamlining of mandi fee.
Involvement of State Governments and Inclusion of agricultural exports in the State Export
Policy.
Operational Elements include: (Normal order)
Focus on Clusters of villages at the block level for select produce(s) and transition from these
clusters to Agri Export Zones (AEZs).
Promoting value added exports by promoting indigenous products and organic exports.
Marketing and promotion of “Brand India”.
Creation of Agri-start-up fund: Entrepreneurs are to be supported to start a new venture in
Agri
products exports.
Attracting private investments.
Strong Quality control Regime.

Way ahead :
Pre harvest linkages – integrated management of pests and diseases, maximum residue level —> For
SPS measure
strengthening cold chain logistics ;
Uniform quality and packaging
Post harvest development – processing facilities,
promotion of value added exports –mango pulp, infant food
Focus on buildingglobal value chain in fish, bovine meat, fruits, vegetables
quality enhancement , strengthening market access effort – participation in international trade fair
***Enviro impact of agri subsidies
***Livestock and Dairy
Livestock farming is the rearing of animals such as cattle, chicken, goats, horses etc. for food and for other
human uses

News
Cabinet Committee on Economic Affairs has recently approved the establishment of Animal
Husbandry infrastructure Development Fund worth Rs. 15000 crores (oct 2020)

MILK

FACTS AND FIGURES?

Livelihood to 15 crore farmers
India = world's largest milk producer
annual growth rate - 4+
Operation flood

Conclu
Need to goMilky Way - milk products !!

REASON BEHIND GROWTH OF DAIRY SECTOR?

Decreasing landholding size
storage and marketing infrastructure – dairy cooperatives, private dairies
increased demand of milk – increasing per capita income, population growth, urbanisation
nutritional value in rural families

ADVANTAGES

CONSUMER EMPOWERMENT 1. Per capita milk availability increased.

2. Reduced the regional imbalance in milk availability.
3. Less price
4. Reduced the seasonal variation in milk prices.

ECONOMIC EMPOWERMENT 4. Farmers connected in cooperative dairy grid=no

exploitation, increased income.
5. Village dairy cooperatives= less nuisance than APMC / food
grain middlemen.

SOCIAL EMPOWERMENT 6. Milk production doesnʼt require much land. Even landless
poor can participate.
7. Village Milk Cooperatives bypassed the feudal power
structure associated with cropping/foodgrains in villages. It
covered farmers from all castes and religion.
 covered farmers from all castes and religion.
8. In that way, operation flood was more successful in Social
empowerment than land reforms and Panchayati raj.

WOMEN EMPOWERMENT 9. Many women dairy cooperatives were setup.

10. Women became direct members and office bearers of such
cooperatives and started earning.

CHALLENGES?
Milk prices sudden fall (fallen by 25% in several milk-surplus states (2018))
infrastructure bottlenecks -> lack of cold food supply chain, milk processing facilities
due to which processors in India, are not able to achieve the scale of operations of their
counterparts in New Zealand or Australia.
Only ~33% of milk produced in India is processed
domination of unorganised sector -> low investment and value addition
Import restrictions by other countries
China do not easily allow import of indian dairy products
Indonesia, Australia had classified india as FMD (foot and mouth disease) hit nation
marketing facilities
non availability of fodder – 65% deficit of green fodder by 2025

GOVERNMENT INITIATIVES?
National action plan 2022 – value added products, milk processing infrastructure
…..

Way ahead :
DOMESTIC
Buffer stock
Expand domestic demand especially in the 115 aspirational districts where malnutrition is
high.
EXPORTS
Merchandise Exports Incentive Scheme (MEIS) - on globally competitive lines - quality etc
India has proximity to milk deficit countries e.g.
Bangladesh
Indonesia.. etc
Ethnic products: untapped potential
Examples of ethnic milk products: Paneer, Rasogolla, Gulabjamun, Srikhand etc.
Scope: For ethnic milk products, profit level is ~25% of the input cost.
Train small manufacturers
Catalyze R & D for commercialization
QUALITY CHECK FOR - Adulteration
Adulteration e.g. milk from urea,detergentetc. —> damages kidney, heart problems, cancer and
even death
Can Destroy Indiaʼs name in foreign market just like Chinese milk products lost business
 Can Destroy India s name in foreign market, just like Chinese milk products lost business
internationally, after news reports of Melamine adulteration in 2008.

MILK COPERATIVES

Dairy Cooperative sector limitations

Reach Reach barely ~20% of the Indian farmers.

Competition From private dairies: both in procurement + retailing of milk.

Offering better incentives to farmers compared to the cooperative.
Even the largest Indian dairy player (Amul)ʼs annual turnover is quite
lower than a large MNC dairy company like Nestle.

Management Dairy cooperatives are subject to state laws /regulations.

But often, the elections in dairy cooperatives are won using money
and caste equations.
Perpetuates cycle of bribes in appoint of dairy staff=> inefficiency +
lack of new initiatives.
Hence, State governments need to make these dairy cooperatives more
accountable, democratic and professional in their functioning.

LIVESTOCK SECTOR

FACTS AND FIGURES??

contribute
15% of income of rural household

SIGNIFICANCE??
SIGNIFICANCE??
alternative livelihood and risk mitigation strategy for small and marginal farmers
more reliable than agriculture -> less prone to global warming and monsoonal effects
empowerment of women -> decision making ability at central and state level

CHALLENGES??
lack of good cattle in suitable number
availability of quality nutrient through feed and fodder
disease diagnosis, health and hygiene maintenance of livestocks
illegal sale of hormone drug Oxytocin -> lowers lifespan of cows and makes them infertile
transport facility
raids from cow protection group

GOVERNMENT INITIATIVES?
….

INDIGENOUS CATTLE
Indigenous cattle prone to extinction
10% declining rate of indigenous cattles

CHALLENGES
Excessive cross breeding -> indigenous population declining
farm-mechanisation -> utility of drought breeds decreasing
decline of grazing ground
shift to cash crop -> no useful leftover for cattles.
fragmentation of agricultural land holding

IMPORTANCE OF INDIGENOUS CATTLE BREED (ICB)

ICB better than exotic breed
better adapt to arid weather condition
lower feed intake
disease resistant
suitable for draught work
cab be fed on kitchen leftovers, agricultural by-products
quality milk
quality compost manure

HISTORY : DAIRY DEVELOPMENT : AMUL

 Kheda district cooperative milk producer's union limited (1946) with the help of Sardar Patel and
Moraraji Desai
Dr. Varghese Kurian, who led white revolution, led the cooperative between 1950-73

SUCCESS OF AMUL
First dairy to produce cheese and baby food from buffalo milk
provide artificial insemination, vet facility, insurance cover to the farmers of the union
1964 – Lal bahadur shashtri initiated all states to set up cooperative dairies on the Anand pattern
1965 – National Dairy development Board (NDDB) (V.Kurien – chairman, HQ – Anand)
institution of national importance
statutory status under national dairy development board act 1987

OPERATION FLOOD
In 1970 – By NDDB to replicate Anand pattern in other part of the country
increase sheds and outlet
increase infra for procurement
R & D in animal health and nutrition
India surpassed USA in milk production in 1998
**Agri investment and credit
Recent Steps
PM Kisan
Loan waiver
PSL - 18%
Interest subvention scheme 2010-11…..
KRISHI KALYAN CESS (0.5% cess - levied on all services)
KISAN VIKAS PATRA (Saving scheme Certificate – money double in 9 years - anyone can buy)
KISAN CREDIT CARD
Union Budget 2018-19 : extending the benefit of Kisan credit card to fisheries and animal
husbandry farmers
implemented by commercial banks, cooperative banks and RRBs
accident insurance upto Rs 50,000 for death and permanent disability
ATM enabled debit card
**Climate e ect on agri + climate e ect of agri + Fasal
Bima
Climate effect on agri

Fact
With higher temperature and shorter rainfall: farmers will see income fall: 15% (irrigated farms), 25%
(unirrigated farms).

Climate effects -
Less water
Two thirds area rain dependent - any changes-
Erratic high water
Changing weather pattern - sudden rain and hail storm
pest and disease outbreaks
Warming
More warming- more soil erosion and evapotranspiration- less water available —> Drought
Poultry and livestock - affected due to heat waves
Seasonal change
Changes in breeding season in marine fisheries with shift in seasonal catch

Govt doing
PM Krishi sinchai
Fasal bima
Subsidies on micro irrigation
MGNREGA

Solution
Seeds- drought and flood resisant
Molecular breeding
Water
cultivate more from less”- per drop more crop through Micro-irrigation
An Early warning system -
to monitor changes in pest and disease outbreaks.
Heat waves etc
Plan
Farmers can adapt to climate changes by shifting planting dates, choosing varieties with different
People need to be moved out of farms

Conclu
cooperative Federalism necessary for Agro-success, because APMC and Land fall under statesʼ list
+ Use private, international community
Subidies nai rehti toh kum impact hota.... but impact hota .. hence organic farming is way forward

THINK OF ALL THE INPUTS and its IMPACTS

Fasal bima
**Feminization of Agriculture

Way ahead
Skill up-gradation of farm-women.
Access to technology
SHG
Finance
Changing inheritance laws and customs which deny land-ownership to women (Agri census 2010
: Only 12% have)
Will also be able to get loan, PM Kisan etc
Loans
Access to market
Providing adequate support services like child care services-creche, balwadi, adequate maternity
and health care etc.

Govt steps
Mahila kisan shasiktaran yojana - Empower women by systematic investment (by govt)
Loan schemes etc..

Conclu
Women moves - world moves
*Agroforestry
Integrated tree based farming system

BENEFITS??
Economic benefits
Trees provide food, fodder, fuel, fertilizer, timber. (F4W)
biogas, biomass, biodiesel, biochar production (B4)
Provide extra source of income
Social
rural poverty
Environmental benefits
best alternative to 33% forest cover as per national forest policy 1988
soil erosion
Water conservation
climate change (Through Carbon sequestration)
Protective functions are:
i) Wind breaks
II) Shelterbelts
III) Soil conservation
IV) Soil improvement

NATIONAL AGRO-FORESTRY POLICY 2014

Bodies
National level board to promote AF
nodal agency = Department of agriculture and cooperation under agriculture ministry
Simplify rules
convergence of various rules and regulations
Land reforms
Tenancy rights to farmers
computerisation of land records
satellite imagery to find existing trees in farmland
R&D
set up National Institute of agro-forestry
quality seeds, technology, guidance to farmers
loans and insurance for trees
*Cotton
News
India to become largest producer of cotton this year

Facts
95% area of cotton under hybrid -GM BT cotton - seed entirely produced by private
65% of cotton area under rain fed

Process of cotton farming

sadsa

Area

Issues
One of the lowest productivity in world bcoz of GM
Also require costly seeds - from private
High inputs - like fertilizer
More water
Long gestation period

WAY AHEAD
PromoteCompact variety seeds (instead of GM)
Brazil (also a developing country) did in 1990s - within decade - productivity increase from
400Kg/ha to 1000Kg/ha
No seed buying requirement - can be collected from old crop
Less fertz
Less water
Less time period - hence less vulnerability to be attacked form pest
*Pesticides
Fact
2017 ʻProfex superʼ —> Yeotmal district 30 farmers died (in cotton plantation) (against bollworm)
Total area treated with pesticide is 40%

RISKS?
Bioaccumulation, biomagnification -> entering food chain, environment
pollutes both surface and ground water
toxic to organisms like fish, birds

REASONS
One is the lack of awareness among the farmers
As per the Insecticides Rules of 1971, the pesticide containers should carry a specific colour
mark-associated with the toxic nature
farmers are often oblivious of the implication of the colour code. They also do not read
and follow the instructions on the label or the leaflet provided with the container.
Non-genuine pesticides flood the market.
FICCI - approximately 30 per cent

GOVERNMENT INITIATIVES?
Acts
Insecticide act 1968 – regulate import, manufacture, storage, transport, sale, distribution and
use of insecticide
People/Farmers
Grow safe food campaign – awareness about safe and judicious use of pesticide
Intl
Rotterdam convention
stockholm convention on PoPs

Maharashtra measures
Measures to handle this:
1. Dedicated quality control staff to check pesticide quality
2. Stringent IPC sections against farm owners and labourers not adhering to stipulations.
3. Intensive care units in district and rural hospitals

SOLUTIONS
Way ahead
Central Pesticide board - advice centre and state
Registration committee - to register or restrict use
Penalites
Compensation
Move towards ZBNF and organic
About Pesticides Management Bill, 2020

News
The Union Cabinet has approved the Pesticides Management Bill, 2020. It seeks to replace the
existing Insecticides Act of 1968

About Pesticides Management Bill, 2020

Aim: To protect the interest of farmers and ensure they get safe and effective pesticides.

Key Features:
Farmers would be empowered to get all information regarding the available pesticides, their
strength, weaknesses, and risks from the dealers
Any person who wants to import, manufacture, or export pesticides would have to register under
the new bill and provide all details regarding expected performance, efficacy, safety, usage
instructions
Provision to provide compensation if there is any farm loss because of low quality pesticide
*Sugar
Facts
The MH-UP sugar industry has been contributing nearly 60% of India's total sugar production.
Sugar vs milk
Milk cooperatives have their own brand, marketing and in some cases even the distribution
network + Cadbury etc
Sugar cooperatives have done a lot of backward integration but not much forward integration
Depending upon the variety and sowing time it takes about 12 to 18 months for sugarcane to
mature.
Generally January - sowing and December - harvesting

Why is sugarcane prefered

Assured market (by mills)
Reasonable price- FRP (FRP - Rs 2,800 per tonne)
Easy crop - less chances of failure due to worms and other diseases
Extra benefit from selling molasses and increasing demand for ethanol
Sufficient irrigation facilities

Sugarcane
21-27 degree
100-150cm rainfall
No frost
Any change in rainfall - drastically affects productivity and sugar content

Why mills near farms

Need to be crushed within 24 hrs or else sugar content (sucrose) decreases
Transportation cost reduces

Why moving to South India

South India grow tropical sugarcane type (unlike sub-tropical in North India) —> which gives high
productivity and more fiberous
Long crushing season
Industries recent- hence better machinery and tec
Strong cooperative
Areas- MH, Guj, Karnataka, TN

Problems in sugar industry

Centre- FRP —> state SAP (even higher) —> mills debt increases

Solution by rangarajan committee

Deregulation of sugar industry
State not declare SAP - FRP given upfront
Issue
Mills non payment (Centre- FRP —> state SAP (even higher) —> mills debt increases)
Sugar production increased - not getting payment
and International prices down
Water
decline in GWT in 70 per cent of the area of MH
cultivated on < 4% of the total cropped area in the state but uses 70% of the its irrigation water.
WTO - Brazil(main party),Australia and Guatemalaʼs —>Dispute settlement panel (DSB) against
Indiaʼs sugar subsidies.
Reason
export subsidies
Mandating the mills to export 5 million tonnes of sugar in 2018-19

Solution
Income reliance
Diversification of sugar industry
Some countries use Sugar beet (have sucrose) for sugar production - do it in India
growing seasons as short as 100 days - max 3-4 months
In 2009, sugar beets accounted for 20% of the world's sugar production.
Increase demand of byproduct - molasses/ alcohol and baggase/ co-generated power.
Also use it in ethanol blend- but not much done if crude oil prices less
By 2020, India is likely to achieve 10 per cent target of ethanol blending of petrol.
National Policy on Biofuels – 2018 envisages a target of 20 per cent ethanol
blending by 2030
Reduce forex by about 1 lakh crore
Climate appropriate agri
Give MSP in other crops- hence less sugarcane production
Price + Political control removal
Solution by rangarajan committee
Partial decontrol of sugar industry
State not declare SAP - FRP given upfront

SUGAR INDUSTRY

FACTS AND FIGURES??

india = 2nd largest producer of sugar, after Brazil
one of the largest farm based industry

SUGAR DOMINATING STATES AND WHY???

UP ,MH,
Now moving in South ... Karnatak, TN. REASON??
Tropical climate of peninsular india -> high yield per hectare of area, high sucrose content
 Tropical climate of peninsular india high yield per hectare of area, high sucrose content
long crushing season in south india (8 months)
cooperatives
Ports – Mumbai to export
earlier, north india = 90% production, now only 35-40%

CHALLENGES??
policy areas
politically sensitive commodity -> any fluctuation in price -> inflation, protest
cyclicality -> 3 years of good production followed by bad production
state advised price
UP gov kept it high for electoral gains
pricing of sugar and sugarcane
no levy sugar policy in india
regulations on by products
state gov fix quotas for different end uses of molasses and restrict their movement
low yield per hectare (65 tons / hectare)
short crushing period -> unemployment for the rest of the months
production volatility, land acquisition
high cost of production
small and uneconomical size of mills
regional imbalance in distribution
low per capita consumption
frost in north
Mill owner debt
Sugar control order 1996 —> pay within 14 days if no agreement otherwise
Financial constraints by mills - to pay full amount
Govt taking strict action for non-payments - attachment of property
Have to take loan for payment to farmers ( pledging stock of sugar ) + operation costs

WAY AHEAD?
Proper utilisation of by products
Molasses – manufacture of alcohol, ethanol blended programme
Bagasse – manufacturing paper pulp, plastic
increase import duty from 25% to 40%
10% of total stock as buffer

WHY LOW SUGAR PRODUCTION IN MH??

Fertilizer
News
Government proposes to limit the amount of fertilisers each farmer can buy during a cropping
season - currently “ No denial Policy"
Indiaʼs fertilizer sector among most energy efficient in world in energy use and GHG emissions.:
CSE Report
Mr Patil of Kolhapur - got to know - his farm has enough, NPK - hence reduced apply of urea etc —>
Impact —> Savings of 2k bcoz of less fertz and yield increase from 45ton to 55ton.

Facts
Fertilizer subsidy - 80k crore this year
Pending dues- 40k cr
Urea selling price in India- 80$/ton (lowest in world)
Import cost - 250$/ton
If produced in India - 400$
Only 35% of subsidy reaches intended beneficiaries

Impact on enviro
Disturb nitrogen cycle
Impact climate change
Increase soil sickness

Way ahead
By 'district soil nutrient maps' by National Remote Sensing Centre
'Customised Fertiliser' - from Soil health card scheme
18 'customised fertiliser' grades for rice, maize, sugarcane and potato, identified in districts
across five states — UP, AP, MH etc.
Recent initiatives
Govt preparing to move on a proposal for (DBT to FARMERS directly) - FAIL IDEA
Why
disincentivizing farmers from excessive use of chemical fertilizers.
The funds transferred
will be used only for buying soil nutrients two options are being explored to decide the
cash subsidy
Open virtual accounts and these can be operated once the beneficiary enters a security
code in the system for buying fertilizer.
How much —> based on
(a)fixing the amount per acre/hectare or
(b)Identified beneficiaries using PM-Kisan scheme.

Challenges
S t t h t tj i d th PM Ki h
Seeds issue

Protection of Plant Variety and Farmers Right Act,2001(PPVFR Act)

News
PepsiCo had claimed exclusive rights over the FC-5 variety under the act seeking damages worth Rs
1 crore from at least four farmers.
Pepsico under heavy criticsim
Huge US company - 65billion $ turnover
Using power against poor farmers - 1cr each
July 2019
Agriculture ministry has issued a notice to PepsiCo India to revoke the registration of its potato
variety used to make its trademark Lays chips.

Claims
Pepscio claim - Patent under above act- to grow exclusively. Also contract with farmers.
Farmer claim - (not yet much clear.. how they got seeds)

Possible solution if in court

N dt i
Need to prove innocence
Ethical - traditional practice of preserving seeds