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Contents

• 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.
• “A transparent and well-regulated Land Pooling system has the potential to solve the problems associated with the current Land Acquisition Framework” Critically Analyze.
• Discuss the significance of cooperative farming in India. Highlight the challenges and suggest measures for effective implementation.
• Should contract farming and land leasing be promoted in India considering the small land holdings? Critically Evaluate the advantages and disadvantages.
• Highlight the key reforms undertaken by the government to bring tenancy reforms. What are the limitations in implementing tenancy reforms.
• Discuss the challenges faced in implementing the Zamindari abolition policy in India. How successful was it in its objective of land distribution?
• Explain the reasons behind the implementation of land reforms in India after independence. Discuss the objectives of land reform and the measures taken to achieve them.
• 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.

14-07-2023

Q: 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. (10 Marks, 150 words)

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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.

• 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.

• 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.

11-07-2023

Q: “A transparent and well-regulated Land Pooling system has the potential to solve the problems associated with the current Land Acquisition Framework” Critically Analyze. (15 Marks, 250 Words)

Answer :

India is a country with high population density and huge land scarcity. Therefore, land acquisition is slowly becoming more and more difficult, and it is hindering developmental activities. Further, the land acquisition system has also become unpopular due to complaints of low compensation and forceful acquisition. The system of land pooling comes as a ray of home in this scenario to ensure that the developmental activities are not hindered, and the original landowners are also satisfied.

• Under Land Pooling Policy, a development agency pools land parcels owned by individuals, a group of owners or a builder. Then it develops the land and returns a part of it to the original owners. In this way, the land is made available for development work and a part of developed land returned to the owner is worth more than the original value of the land, thus satisfying the original owners.

• Unlocking huge parcel of land for development -> Land Acquisition is becoming unattractive for people, and this may appear as an alternative and attractive option.
• This would also contribute to reducing stress on already developed areas and may also restrict price escalation in these areas.
• It thus emerges as a transformative step for urbanization.
• It also promotes public-private partnership and trust -> this is due to wider community participation in the whole process of land pooling, development and return of ownership.
• Aggregates small land piece for bigger projects. This leads to more efficient utilization of land.
• Reduced initial cost for development authority -> As there is no need to buy the land for the developmental projects.
• Less conflict ridden as is the case of Land Acquisition due to inadequate compensation, consent, process etc.
• Original Owners will also be benefitted as the land returned to them, though smaller in size, have access to infrastructure and services which increases the value of the land drastically. Further, the landowners are not displaced in the land pooling scenario.

• Poor System of land records can be a concern here. Participation in land pooling is dependent on the owner having proper land ownership documents.
• In the case of pooling for Amravati even fertile agricultural land was also pooled.
• Unlike land acquisition, the provisions for the social or environmental impact assessment are absent in case of land pooling. Therefore, the impact on landless laborers and on the environment is generally ignored or very meagre compensation is paid to landless workers.
• There have been instances of mandatory land pooling. For e.g., in case of Navi Mumbai Airport Land Pooling, the pooling was made mandatory because of the delays in the process.

• There is a need for a transparent regulatory framework with statutory backing to ensure that the land pooling process is transparent, consensual and doesn’t use agricultural or environmentally sensitive zones. Further, this framework should also provide for mandatory social and environmental impact assessments before the beginning of the developmental work.

Land Pooling if done on non-agricultural land (for e.g., in urban villages) and along with social and environmental impact assessments, can emerge as a tool of transformative urban development which is beneficial for all the three parties i.e., the landowners, the private sector and the government. Landowners get better value and better quality of land; private players can participate in commercial and developmental processes and the government is able to facilitate development.

07-07-2023

Q: Discuss the significance of cooperative farming in India. Highlight the challenges and suggest measures for effective implementation. (15 Marks, 250 Words)

Answer :

• Cooperative farming has been advocated to solve the problems created by subdivision of holdings. The idea is that farmers having very small holdings should join hands and pool their lands for the purpose of cultivation.

  The significance of cooperative farming in India:

  • Resource pooling: Enables small farmers to combine their land, labor, and resources, achieving economies of scale and improving productivity.
  • Access to credit: Cooperative farming facilitates easier access to credit and financial support, empowering farmers to invest in modern inputs and technologies.
  • Market access: Collectively marketing produce allows for better negotiation power, higher bargaining capacity, and fairer prices for farmers.
  • Risk mitigation: By diversifying crops and sharing risks, cooperative farmers can better cope with fluctuations in market prices, weather conditions, and other uncertainties.
  • Social empowerment: Cooperative farming strengthens social cohesion, encourages collective decision-making, and fosters unity among farmers, promoting community development.
  • Infrastructure development: Cooperatives can invest in shared infrastructure like irrigation systems, warehouses, processing units, and transportation, benefiting all members.

  Challenges in cooperative farming in India:

  • Difficulty in equitable distribution of benefits: Ensuring fair distribution of profits, resources, and decision-making power among members can be a challenge.
  • Governance and management issues: Inefficient management, lack of accountability, and governance challenges can hinder the smooth operation of cooperatives.
  • Lack of technical knowledge and training: Access to technical know-how and training is essential for cooperative farmers to adopt modern farming practices and increase productivity.
  • Socioeconomic disparities and inclusivity: Ensuring inclusivity and addressing disparities among members, such as gender and caste, remains a significant challenge in cooperative farming.
  • Land fragmentation and size disparities: Fragmented land holdings and varying farm sizes within cooperatives can create operational complexities and uneven resource distribution.

  Measures required for effective implementation of cooperative farming in India:

  • Capacity building: Provide training and technical assistance to enhance members’ skills and knowledge in cooperative farming.
  • Strengthen governance: Implement transparent and accountable governance mechanisms within cooperatives to ensure efficient decision-making and management.
  • Policy support: Create supportive policies and incentives to promote cooperative farming and address regulatory barriers.
  • Networking and collaboration: Encourage cooperation and collaboration among different cooperatives to share resources, knowledge, and experiences.
  • Monitoring and evaluation: Establish a robust monitoring system to track the performance and impact of cooperative farming initiatives.

  While contract farming, if implemented wisely, does have the potentials to alleviate the sufferings of India’s farmers, improved yields, and greater technology transfer, it is imperative that the state government takes a cautious, research backed approach and implements the model law with modifications suitable for the state.

06-07-2023

Q: Should contract farming and land leasing be promoted in India considering the small land holdings? Critically Evaluate the advantages and disadvantages. (15 Marks, 250 Words)

Answer :

• Contract farming: An agreement between farmers and companies where farmers produce a specific crop for the company under predetermined terms, receiving input and support in exchange for selling the produce.
• Land leasing: Renting agricultural land to another party for a specified period, where the tenant pays rent or a share of the produce and is responsible for farming operations.

• As per Agriculture Census, the average size of operational holdings has decreased from 2.28 hectares in 1970-71 to 1.84 hectares in 1980-81, to 1.41 hectares in 1995-96 and to 1.08 hectares in 2015-16.
• As per NABARD All India Rural Financial Inclusion Survey (2016-17), All-India, 12% households leased-in agricultural lands. The incidence of tenancy is under-reported as tenancy in most states is not permissible legally.
• As per 70th round of NSSO Report (2013), the share of small and marginal farmers in the total leased-in land is 52%.

• Indian Contract Act, 1872.
• The Model APMC (Agricultural Produce Market Committee) Act, 2003.
• Model Contract Farming Act, 2018.
• Model Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2018.
• Model Land leasing Act 2016

• Access to technology and expertise for small farmers, leading to increased productivity and efficiency.
• Improved market connections and higher income potential for small farmers through assured buy-back agreements.
• Facilitates economies of scale, enabling small farmers to benefit from shared resources and reduced production costs.
• Diversification of agricultural practices and crops, enhancing resilience and mitigating risks.
• Potential for attracting private investment and promoting modernization of agriculture.

• Risk of exploitation and unfair contracts, as small farmers may lack bargaining power and face unequal terms.
• Loss of land control and decision-making power for farmers, potentially leading to dependency on corporate entities.
• Potential threat to food security if large tracts of land are leased for non-food crops or commercial purposes.
• Socioeconomic disparities may widen, with large farmers benefiting more than small farmers.
• Challenges in implementing and regulating contracts and leasing agreements, requiring robust legal frameworks and oversight.

In conclusion, considering the small land holdings in India, promoting contract farming and land leasing holds the potential to uplift small farmers by providing access to technology, markets, and resources, leading to increased productivity, incomes, and resilience in the agricultural sector.

05-07-2023

Q: Highlight the key reforms undertaken by the government to bring tenancy reforms. What are the limitations in implementing tenancy reforms. (15 Marks, 250 Words)

Answer :

The Indian government has undertaken key reforms to address tenancy issues, aiming to protect the rights of tenant farmers and ensure land redistribution, social justice and reduce inequality.

• Rent Regulation: In the pre-independent India, exorbitant rent was extracted from tenants. In the country, the rent varied from 34 to 75%.
• Reduction in Rent: The first five-year plan stated that maximum rent should be fixed at 1/4th or 1/5th of the total product. Except in Punjab, Haryana, J&K, TN and Andhra Pradesh, this limit was observed in all the states. Even in these states, it didn’t go beyond 40%.
• Security of Tenure: To protect tenants from ejectment and grant them permanent rights in land, legislations have been passed in most of the states.
• Legislation for security of tenure had three essential aims:
• No ejection except as per the provision of the law.
• Land may be resumed by the owner, if at all, for ‘personal cultivation’ only
• In the event of ejection, the tenant is assured of a prescribed minimum area.
• Ownership rights for Tenants:
• Some states have also passed laws to confer ownership rights to tenants.
• It is estimated that because of this, 1.2 crore tenants have acquired ownership rights over 6.32 million hectares of land.
• West Bengal, Karnataka, and Kerala have achieved more successes than the other states.
• In Kerala, applications of 24 lakh tenants for conferment of ownership rights were accepted.
• Support for sharecroppers: Special provisions have been made to provide legal recognition and support to sharecroppers, ensuring they have access to credit, government schemes, and agricultural inputs.
• In West Bengal, 14 lakh sharecroppers have been recorded under the ‘Operation Barga’.
• Contract farming regulations: The government has introduced guidelines and regulations to safeguard the interests of farmers entering into contractual agreements with agribusiness companies, ensuring fair terms and protection against exploitation.

• Overall, the progress was very unsatisfactory.
• A few states didn’t adopt legislation while in some others implementation has been very poor.
• Weak enforcement mechanisms and inadequate monitoring undermine the effective implementation of tenancy reforms.
• Powerful landlords and intermediaries often resist the implementation of tenancy reforms, as it may impact their economic interests and control over land.
• Cumbersome legal processes and lengthy litigation procedures made it difficult for tenant farmers to seek legal recourse and protect their rights.
• Deep-rooted social norms, customs, and power dynamics limit the effectiveness of tenancy reforms.
• For a long period, tenant didn’t exercise their rights to purchase ownership of land they cultivated due to following reasons:
• Many tenants couldn’t afford to pay the purchase price.
• Many tenants were unwilling to purchase. This reflected the dominant controlling power of the landowner’s vis-a-vis the tenants.

The government’s efforts in implementing tenancy reforms have included enacting legislation, providing legal recognition to sharecroppers, and regulating contract farming. Despite limitations, such reforms hold the potential to empower tenant farmers, enhance agricultural productivity, and promote social and economic equity in the farming sector.

04-07-2023

Q: Discuss the challenges faced in implementing the Zamindari abolition policy in India. How successful was it in its objective of land distribution? (15 Marks, 250 Words)

Answer :

Even before independence it was understood that exploitation by zamindars is the main cause of stagnation in India’s agriculture which in turn was the main reason behind stagnation in Agri-growth. So, some states had passed laws to abolish the zamindari system, but the primary work related to this was done during the first five-year plan.

• Official documents claimed that intermediaries were completely abolished by the end of the First Plan excepting a few small pockets in some areas.
• It is estimated that in all 173 million acres of land was acquired from the intermediaries and, consequently, about 2 crore tenants were brought into direct relationship with the state.

• Challenges:
• Delays: Due to delay in making of laws (for e.g. UP Zamindari Abolition act, took 4.5 years) and then due to Zamindar’s challenging it in court.
• Flaws in legislations:
• The “Personal Cultivation” provision was misused. Zamindars could obtain land for ‘personal cultivation’ upto a ceiling limit. The zamindars could even evict tenants for the purpose.
• “Ceilings were very high” -> very few zamindars were affected.
• Transfer of land to family members: Flaws in the legislation have also enabled them to transfer their land to other members of their families and thus escape the ceiling law.
• Zamindari only changed its ‘garb’: The previous zamindars acquired large areas for personal cultivation on which cultivation is done with the help of hired agricultural labor. They are now designated as ‘big landowners’ and along with rich peasantry, have formed “a new and dominant class of rural capitalist”.

• Positives
• Most of the states had passed zamindari abolition law by the end of the first five-year plan. This perhaps reflected on the popular sentiments against zamindars and their exploitative practices.
• Exploitation and oppression of tenants and actual tillers of the soil declined steeply, and the feudal rural structure crumbled.
• Reforms led to skimming of great absentee landlords.
• Land reforms measures in Kerala (1959) and West Bengal (1967) are particularly significant.
• In Kerala, the government declared eviction illegal, and sharecroppers were granted the right to purchase land. They were not allowed to retain more than 10 acres of land.
• The United Front Government of West Bengal acted decisively in favor of the bargardars and agricultural workers and against landlords and rich farmers.

Overall, while the policy marked an important step towards reducing economic inequality and rural poverty, its implementation was marred by several challenges, and its success was uneven across the country. For the policy to achieve its objectives fully, these challenges needed to be, and still need to be, addressed more effectively.

03-07-2023

Q: Explain the reasons behind the implementation of land reforms in India after independence. Discuss the objectives of land reform and the measures taken to achieve them. (15 Marks, 250 Words)

Answer :

After gaining independence, India implemented land reforms to address historical injustices, alleviate rural poverty, promote social equity, and enhance agricultural productivity.

The exploitative nature of land tenure system (Zamindari and Ryotwari system) prevailing during the pre-independence period:

• Under Zamindari System:
• High rent: As much as 25% of produce was taken away by the intermediaries in the form of rent.
• Illegal extraction: Encroachment of communal rights in pastures, forests, etc and the farmers were made to pay for accessing these.
• Begar and force labor were common: Other than high rent and illegal extractions, farmers were also forced by zamindars into forced labor.
• Low capital investment: Low income for famers led to lack of investment in agriculture, low capital intensity and antiquated methods -> stagnant productivity.
• Poor records maintenance: It led to difficulty in mortgaging and selling of land. It also led to poor development of credit institutions in these areas.
• Even under Ryotwari system where rent was directly paid by Ryots (cultivators) to government, several shortcomings had developed. Here, moneylenders and Mahajans had come to play a very important role. By the time of independence, more than 20% of the area under cultivation had passed under open tenancy.

• Remove impediments to Agri production that derives from agrarian structures inherited from the past.
• To eliminate all forms of exploitation and social injustice within the agrarian system, to provide security for the tiller of soil and assure equality of status and opportunity to all sections of the rural population.
• Redistributing land: The main objective of land reform was to redistribute land from large landowners to landless and small farmers, thereby reducing inequalities in land ownership.
• Ensuring land tenure security: Land reforms aimed to provide secure land tenure rights to farmers, protecting them from eviction and ensuring their long-term investment in land.

• Abolition of intermediaries: Abolishment of Zamindars and bringing farmers in direct contact with state
• Tenancy Reforms: It included regulation of rent, security of tenure and ownership rights of tenants.
• Ceilings on Agricultural Landholdings: So that access land could be redistributed.
• Reorganization of Agriculture: Redistribution of land, consolidation of land holding and cooperative farming.

Despite various implementation challenges, these land reforms significantly contributed to rural poverty reduction, and social equity in India, thus underlining the importance of land reforms in advancing the socio-economic conditions of marginal and small farmers.

22-06-2023

Q: 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. (15 Marks, 250 words)

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.

• 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.

• 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.

• 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.