Agri Marketing (DAMP)
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- Analyze the role of government policies and initiatives in promoting agriculture mechanization in India. Assess the effectiveness of existing schemes and suggest measures to further encourage the adoption of mechanized farming techniques. (15 Marks, 250 words)
- What is Agri-Credit, and how does it support the agriculture sector in India? Discuss the key steps taken over the years to improve the Agri-credit situation in the country.
- Climate-smart agriculture will contribute to the attainment of Sustainable Development Goals (SDG) 2030.
- Discuss the challenges faced by farmers in marketing their agricultural produce in India. Suggest measures to improve Agri-marketing infrastructure and reduce post-harvest losses.
16-06-2023
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Answer :
The concept of Organic Farming revolves around the idea of cultivating crops and raising livestock in a manner that emphasizes ecological balance, sustainability, and the use of natural inputs. It is a holistic approach that seeks to minimize environmental impact, promote soil health, and produce safe and nutritious food. As per ESI 2022-23, India has 44.3 lakh organic farmers, the highest in the world, and about 59.1 lakh ha area was brought under organic farming by 2021-22.
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Key Initiatives include: |
- Financial Support for Transition: Through initiatives like Paramparagat Krishi Vikas Yojna, Bhartiya Prakritik Krishi Padhati Yojana, Mission Organic Value Chain Development for North-East Region (MOVCD – NER), government provides financial support for organic inputs, capacity building, certification and infrastructure development.
- Certification Support:
- National Program for Organic Product (NPOP) provides certification mechanism for primarily export products.
- Participatory Guarantee System for India (PGS-India) by MoA&FW certifies cluster of small farmers.
- Market Linkages: Through initiatives like Jaivik Kheti Portal, which serves as an ecommerce cum knowledge platform, government help in connecting organic farmers with consumers, retailers and exporters.
- Capacity Building: Through institutions like Agricultural and Processed Food Products Export Development Authority (APEDA), National Centre of Organic Farming (NCOF), and Krishi Vigyan Kendras (KVKs), government supports capacity building programs which contribute to training, demonstration, and technical assistance to farmers on organic farming practices.
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Challenges persist: |
- Limited Awareness and outreach
- Certification is expensive under NPOP and is out of reach for most of small and marginal farmers.
- Insufficient infrastructure development for organic processing, storage, and value chain
- Market for organic products is either in Urban areas or in export.
- Accessing such markets requires contracts with larger companies.
- A small farmer can’t reach those who may more for organic produce.
- Other Factors hindering growth of organic farming in India.
- Lack of conviction among policy makers
- Limited consensus among scientific communities in favor of organic and natural farming
- Tendency to evaluate the non-chemical agricultural practices only based on yield.
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Way forward to reduce the above shortcomings limitations: |
- Existing Programs to support organic farming need to be scaled up, expanded, and properly funded.
- Strengthen Extension Services to provide farmers with information, training, and technical support on organic farming practices.
- The government should draw a roadmap that sets the long-term agenda for adoption of agro-ecological approaches across different parts of the country.
- This roadmap should also consider mechanisms to incentivize farmers to adopt agro-ecological practices such as payments for ecosystem services.
- Measures to adequately produce and make available quality organic fertilizers and biofertilizers at low cost should be a priority.
- Simplified Certification Mechanisms:
- The organic certification needs to be made farmer friendly and low cost. Measures should be taken to address the problems of PGS. India (Participatory Guarantee System of India) certification system and its implementation.
- An alternative certification that is simpler for farmers and trustworthy for consumers could be explored for well-connected local markets.
- Problems of small and marginal farmers can be reduced by bringing them together for collective farming.
- The government should also ensure that farmers organize in a way they can enter contracts and demand a fair price from global companies.
- Enhance R&D specific to organic farming for the development of region-specific organic farming techniques, pest and disease management strategies, and organic input formulations.
Organic Farming in India aligns with the principles of sustainable agriculture, fostering ecological balance, farmer livelihoods, and consumer health. Its emphasis is on environmental stewardship, soil health, and biodiversity conservation.
15-06-2023
Answer :
Mechanization of agriculture refers to the application of machinery and technology in various farming operations to enhance efficiency, productivity, and precision in agricultural practices. It has transformed various aspects of farming, including land preparation, planting, irrigation, crop maintenance, harvesting, post-harvest handling, and storage.
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Impact of these Schemes: |
- Under SMAM, as of Dec 2022, more than 21,000 CHCs and more than 18,000 farm machinery banks have been established.
- Indian Tractor Industry is the largest in the world accounting for one-third of the total production.
- Overall, Agri mechanization has increased in the country, which has led to increase in Agri productivity, reduction in labor drudgery, and overall positive impact on rural development.
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Why lack of adoption of mechanized farming techniques: |
- Affordability: High costs and limited credit options make it difficult for farmers, especially small-scale ones, to afford machinery.
- Lack of awareness: Limited exposure and knowledge about benefits, operation, and maintenance of machinery impede adoption.
- Social and cultural factors: Cultural norms and attachment to traditional methods influence farmers’ preference for manual labor over mechanization.
- Fragmented market: Limited availability and high costs due to a fragmented machinery market impede adoption.
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Measures to encourage the adoption of mechanized farming techniques: |
- Consolidation of landholding can go a long way in ensuring the benefits of agricultural mechanization.
- Enhancement of the availability and affordability of credit for farmers to purchase machinery.
- Innovating a rental model by institutionalizing high-cost farm machinery such as combine harvester, sugarcane harvester etc. to reduce the cost of operation.
- Encouraging FPOs to pool resources, negotiate better prices, and collectively benefit from mechanizations.
- Promoting indigenous industry in the farm equipment sector to reduce the cost and to promote more R&D in the farm equipment sector.
- Public Private Partnership (PPP) can facilitate technology transfer, provide access to quality machinery, offer maintenance, and repair services and ensure availability of spare parts and technical support.
- Farmer Education and Training Programs need to be strengthened. It would enable farmers to better operate the new machinery and contribute to skill development of youth for new kinds of jobs in rural areas.
By continually refining policies, increasing support mechanisms, and engaging stakeholders at all levels, India can further encourage the adoption of mechanized farming techniques. This will contribute to sustainable agricultural growth, improved livelihoods for farmers, and the overall development of the agriculture sector in the country.
14-07-2023
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Answer :
Agri-Credit is a credit designed to meet the financing needs of agricultural farmers and businesses. It enables farmers and agricultural enterprises to access funds for Agri- production, equipment purchase, expanding operations, warehousing etc.
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How does Agri Credit support Agriculture Sector: |
- Spectacular growth in Agri credit sector (from 2% of Agri-GDP in 1970s to around 40% in 2019-20).
- Enhanced Agri productivity leads to food security.
- Increased investment in agriculture infrastructure such as irrigation systems, storage facilities etc.
- Diversification and Modernization: Easy credit can give farmers scope to new crops, adopt organic farming, or invest in livestock sector.
- Income Stability for farmers: Easy farm credit can reduce dependency on unauthorized money lenders and allow them to meet their expenses through institutional credit.
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Steps Taken to Promote Agri-Credit over the years: |
- Nationalization of Commercial Banks in 1969, Establishment of Regional Rural Banks in 1976 and setting up of NABARD in 1982 led to increasing farm credit.
- Priority Sector Lending (PSL) norms initiated in 1974, mandates all domestic commercial banks (and foreign banks with 20 or more branches) to earmark 18% of loans for farm credit.
- The Kisan Credit Card (KCC) introduced in 1998, is aimed at providing adequate and timely short-term credit needs for farmers and has now been extended to fishery and animal husbandry sector also.
- Modified Interest Subvention Scheme, operational since 2006-07, provides short term Agri credit of up to Rs 3 lakh at a subsidized interest rate of 7% per annum to farmers engaged in agriculture and allied activities.
- The Agriculture Infrastructure Fund announced as a part of AtmaNirbhar Bharat Abhiyan will further boost the credit flow to Agri-sector.
The steps taken over the years to improve Agri-Credit in India have played a pivotal role in supporting the agriculture sector and empowering farmers. The positive strides made in Agri-Credit have not only empowered farmers but have also laid a strong foundation for a prosperous and resilient agricultural sector, driving India’s journey towards food security, rural prosperity, and economic well-being.
22-06-2023
Answer :
Agri-marketing refers to the process of promoting, selling, and distributing agricultural products, including crops, livestock, and related inputs. It involves activities such as market research, pricing, branding, packaging, advertising, and establishing efficient supply chains to connect farmers with consumers and other market participants.
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Efficient Agri-marketing is crucial for: |
- Ensuring proper prices for farmers: Promotes and sustains agricultural production and productivity -> food security and inclusive growth.
- Lower prices for consumers: Efficient marketing mechanisms reduce the cost of transaction and share of intermediaries.
- Stimulating Agro-based and food processing industrial growth: Ensures affordable availability of raw material for Agro-based industries.
- Reduced subsidy burden for government: Efficient marketing will reduce the need of procurement by government from MSP.
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Challenges faced by farmers in marketing their agricultural produce: |
- Limited market access: Farmers struggle to reach distant markets due to inadequate transportation infrastructure and connectivity.
- Price volatility: Farmers face unpredictable price fluctuations, leading to income instability and financial insecurity.
- Middleman exploitation: Farmers often rely on intermediaries who exploit their lack of bargaining power, resulting in unfair prices.
- Inefficient value chains: Poor integration between farmers, processors, and retailers leads to wastage, delays, and reduced profitability.
- Inadequate storage and post-harvest facilities: Insufficient storage infrastructure and post-harvest losses diminish farmers’ profits and marketable quantities.
- Inadequate market infrastructure: Lack of proper market yards, cold storage, and processing facilities restrict farmers’ access to quality markets.
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Way Forward |
- Reform APMCS (responsibility of states): Incentivize states to adopt and implement features of model laws such as delink the regulatory and operational role of APMCs.
- Link APMC with national e-marketing portal.
- Modernize storage facilities: Upgrade warehouses and cold storage to ensure proper preservation of agricultural produce.
- Enhance transportation networks: Improve Road and rail connectivity for efficient movement of goods from farm to market.
- Invest in processing units: Establish processing facilities to add value to agricultural products and meet market demand for processed goods.
- Support farmer producer organizations: Strengthen FPOs to enable collective marketing, bargaining power, and access to better markets.
Government’s efforts are in right direction to enhance farmers’ access to markets, ensure better price realization, and promote sustainable agricultural practices for the overall development of the sector.
01-09-2023
Answer :
Climate Smart Agriculture (CSA) is an integrated and sustainable approach to farming that addresses the
challenges of food security and climate change by optimizing resource use, enhancing resilience, and minimizing environmental impacts across various agricultural sectors. Climate Smart Agriculture (CSA) tackles food security and climate change by holistically managing croplands, livestock, forests, and fisheries. Farmer-centric programs like Soil Health Cards and Neem-coated urea enhance climate-smart practices.
Key pillars of Climate Smart Agriculture
- Food security refers to increasing agricultural productivity, utilizing techniques like precision irrigation and multi-cropping.
- Adaptation involves modifying farming methods to bolster resilience against climate change, employing strategies such as cultivating drought-resistant crops and implementing agroforestry and rainwater harvesting.
- Mitigation encompasses curbing greenhouse gas emissions and optimizing carbon sequestration in
agriculture, utilizing approaches like conservation tillage, and adopting solar pumps.
Role of Climate Smart Agriculture in achieving Sustainable Development Goals 2030
- Poverty alleviation (SDG 1): CSA fosters inclusive farming, benefiting rural poor dependent on agriculture through increased incomes.
Ø Initiatives like CGIAR and NDDB advocate mixed farming for income diversification. - Food security (SDG 2) is bolstered by CSA, enabling sustainable yield increases, reduced post-harvest losses, and improved access to nutritious food.
Ø Programs like PM Krishi Sinchai Yojana financially support micro-irrigation adoption for enhanced
productivity. - Environmental conservation (SDGs 7, 14, 15) is promoted through CSA practices, endorsing renewable energy use, soil health preservation, and water conservation.
Ø Schemes such as KUSUM (solar power in agriculture) and Sahi Fasal campaign align with these goals. - Climate change mitigation (SDG 13) is facilitated by CSA’s climate-friendly practices, curbing greenhouse gas emissions.
Ø Initiatives like PM PRANAM and Parmparagat Krishi Vikas Yojana contribute to this objective.
Way forward
- Offering farmers credit linked to CSA practices as incentive for adoption.
- Delivering localized extension services via mobile phones to facilitate understanding.
- Promoting Agri-startups for accessible solutions in soil testing, disaster alerts, and farm management.
- Following global best practices like FAO, WB, UNFCCC standards to ensure quality and effectiveness.
Climate Smart Agriculture presents a transformative approach to tackle food security, climate change, and
sustainable development. Through CSA, we can establish resilient agricultural systems which will contribute to a more sustainable and inclusive future for future generations.