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Agriculture - Coggle Diagram

- - - - HYV seed
      - tractors
      - irrigation facilities
      - pesticides
      - fertilisers
  - - - comsumer
        
        falling price
      - farmer
        
        surplus production
  - - - need evergreen revolution - Rainbow Revolution
        
        No favor to any crop or area
        
        Chemical free
        
        susatinbale
        
        water conserving practices
        
        LR - both qualitative and quantitative
    - - GW depletion
      - caused drying of aquifers - steady decline in water table - bcz they kept on growing water intensive crops - rice, wheat and sugarcane
  - - - ltd growth due to starting inertia
      - increase in regional disparities and wheat growing regions prospered
    - - best phase 3-4% growth
      - Rice joined in
      - Significant increase in productivity and regional disparities
    - - decent till 2004(2%
      - 2005-2012 3%
      - 2012 plus -
      - challenges
        
        poor growth due to
        
        absence o fLR
        
        poor credit
        
        poor investment
        
        poor marketing
        
        wide desparities
        
        food security
        
        Globalisation issues
- - - - to institute an ecosystem that enables freedom of choice in sale and purchase of farmer's produce
      - facilitate remunerative prices via competitive alternative trading channels
      - promote barrier free trade in agriculture
      - enables private participation in mandis or pvt markets i.e pvt mandis can be setup where anyone can buy produce from farmers
      - permits for the first time trade in agricultural produce outside the APMC regulated mandis
    - - assumption - Mandis controlled by APMC - are only buyers in rural areas
        
        reality - official data - a large proportion of harvests being sold to local pvt trader
        
        some sources say that - around 60 % of agricultural trade takes place outside the mandis via above unregulated sales
        
        reasons for unregulated sales -
        
        less no. of mandis to sell the produce
        
        majority farmers in India - small and marginal - less produce- more transport cost as mandis far and hence they sell their harvest to village traders at lower prices
        
        recomm from National Commission on agriculture - estb in 1970
        
        every Indian farmer should be able to reach a mandi in 1 hour by a cart
        
        as per this recom there should be 41000 mandis atleast, reality, 2019 only 6630 mandis serving an avg area of 463 km sq per mandi
        
        small and marginal farmer will still sell to village traders even if pvt mkt replace mandis
      - poor investment to establish pvt markets
        
        why?
        
        high transaction cost in produce ka collection and aggregation
        
        opening collection centres, to spend on salaries for grading of produce its storage and transportation
      - poor cold storage facilities - discourages retail chains to buy directly from farmers
      - transaction cost will replace mandi tax- farmer will continue to get lower price for harvest and worst if tansc cost> mandi tax
      - weakening of mandi and expansion of pvt market
        
        pvt mkt have no commitment to MSPs - may lead to gradual erosion of farmer's entitlement to a remunerative price
        
        not sufficient pvt mkts to replace mandis
      - MSPs - rising at a slower rate over the past 5-6 years even though input and labor cost - rising sharply in agriculture
    - - increase in density of mandis
      - more investment in mandi infrastructure
      - increase in coverage of MSPs to more regions and crops
      - transformation into better mandis via
        
        reduced trader collusion and linking them with national e-trading platforms
        
        internal reform in APMCs for easing the entry of new players
        
        introduction of unified national licences for traders
        
        single point levy of market fees
      - conc - improve existing APMC system rather than reducing its role
    - - licenses for buyers in APMC no longer necessary
  - - - establishes a national legislative framework to enable contract farming
    - - past experiences of contract farming in India not always beneficial for farmers
        
        malpractices against farmers - delayed payments
        
        quality-based undue rejections
        
        outright cheating
    - - promotes diversification, quality production for premium price
      - brings new capital and knowledge into agri
      - voluntary and either party free to leave after expiry of agreement
      - insulates interested farmers against market and price risks
      - prohibits farming agreement to include transfer, sale, lease, mortgage of land of farmers
  - - - bcz of relaxation of hoarding regulations
        
        traders can store grains & sell them when price is good
        
        traders will buy produce in harvest season when prices are generally lower , store them and release them when prices are high
    - - replace MSP with DBT
  - - - for 88% of paddy production & 70% of wheat prod in Pb and Har
    - - govt should continue procurement as it need it to meet targets under PDS and NFSA act
        
        ~ 80 cr NFSA beneficiaries + additional 8 cr migrants who need to be supported under PDS
      - more than farmers, govt needs the procurement system and MSP
      - dismantling procurement system not in interest of both farmer and govt
      - conc- centre shall reach out to farmer groups & assure them of the indispensability of MSP procurement system
    - - ~ 35% rice and 62 % of wheat produced in last 3 years has been from these states
      - 50% of total coarse grains from these states
  - - - to remove arbitrary & periodical stocking limits on agricultural commodities that govt imposed on traders f
    - - law directly supports hoarding
  - - - declining farmer income
      - lack of remunerative prices for produces,
      - unpredictable and arbitrary govt policy regime
      - stagnant wages
      - withdrawal of state support to agriculture & instable prices
      - govt fails to intervene by stabilising prices via MSP-led mech
        
        g - a steady decline in yr-on-yr inflation of wheat based on WPI despite record procurement by govt
      - withdrawal of diesel subsidy & rise in electricity prices contributed to making agriculture unviable
      - poor instituional mech for agr loans
      - NBS - for fertilisers scheme led to an increase in fertiliser prices
      - farmers meet most of their cash req from non-institutional sources - middlemen - contributed to rising cost of cultivation and increase in loan defaults
    - - revamping of institutional structure to support ag sector - need of hour
      - More fiscal support requd from sarkar side
      - Ag sector - needs comprehensive policy overhaul to recognise new challenges
      - innovative thinking
      - better understanding of structural issues
      - conc - only when we achieve all this vision of govt on doubling farmers income can be achieved
- - - - fluct in monsoon
      - lack of market integration
      - hoarding by middlemen
- - - - less farmers benefitted(6%)
    - - benefitted much more farmers than it is really perceived
      - 14%-16%- farmers able to sell paddy and wheat to govt
  - - - procurement is concentrated in states which had traditionally benefitted from green revolution
- - - - with higher income farmers demand more
      - supply side
        
        agri as RM for different industries
- - - - Loss of growth momentum
      - dim prospects of further gowth
      - need for an increased MSP
      - for more than 15 yr govt has procured from farmers in har and pb - affected entrepskill s of farmers to sell their produce in a competitive market where prices are determined by demand and supply and competition
    - - delpetion of GW resouces
      - burning of paddy stubble that leads to air pollution
      - employment to rural youth
- - - - farmers need not approach pvt money lender for loans
      - aid their purchase of inputs
      - can decide his own choice of crop
      - helps to break vicious cycle of rural indebtedness - ensures - that farmers do not fall again in debt trap