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4A-2: Agri-Selling - Coggle Diagram
4A-2: Agri-Selling
5. Food inflation, deflation
- GreenRev→cerals ✅
- perishable😓
- seasonal Δ in Onion,
tomato, pulses
Common Factors
- Supply side
- Shortage, poor monsoon,
cold-storage, transp, pest,
hoarding
- Demand side
Onion
- late monsoon→sowing delayed
- prolonged rain→standing crop
- cutting & transporting
Tomato
- Glbl Warming→Heat wave
nascent flower buds
- Pests bcm resistant
- Vulnerable to viral
Pulses
- Yield*MSP→wheat more profit
- ⏫MSP Wheat >>🔼MSP Pulses
- finer land→cash crops
- Prot rich→pest
- Soil N rich→weed
- Cobweb phenomena
Govt. Steps
- OMSS: Consumer Aff
- MEP (export)
- Price stabilzn fund
- Op Greens for TOP
- ECA Ordinance
Essential Commodities Act
- Govt. counter hoarding
- Problems
- raids w/ bribe motive
- Random stock limit imposn
- No impact on pulses-06, sugar-09, onion-19
- Discourage traders investm in warehouse...
- Enacted 1955, famine, shortages, etc.
-
-
-
-
Ordinance
- When to impose stock Limit
- extraord price rise?
- Applicable to?
Conclusion- Ordinance
- bottleneck food processing industry
- encourage investm
Conclusion-Food Inflation
- Veggies: Nutrients, vitamins
- Nutrion security
- Export competitiveness
- Priority basis
Deflation
- DeMon, Intl Protectionism,
Patel Hawkish MonPol
- Sugar mills FRP, MSP-selling
1. APMC
- Politz, Cartlzn
- Mandi tax
- Infra cold storage,
transport
- Model APMC
- APMC Ordinance
Criticism
- Scope of misinterp,
MNC expl
- Lbrzn/pvtzn not
always helpful
Conclusion
- Successive U.Gov.. not
adopted uniformly
- Covid... econSlo... forced
to implem@ faster rate
Help in
- 1 nat 1 mkt
- pvt invest, boost comptn
- 2x farmer inc
- SDG 1,2,8,10 (poverty, hunger
econGrot, 🔻ineq)
- Sell online?
- Payment
- Dispute?
- Fees/taxes
2. Contract Farming Ordinances
- Adv agreem
- std qlty & texture
- Selling price
- e-NAM
- Agro min, CSec
- inter-intra state
- ❌info asymmetry
- GrAMs
Ideally:
- Inputs+services
by buyer
- associated docs #
4. Income Support
- Rural frmr:
mo farm<<othr src
- ClmtCh, ⏬income
- 2x tgt by 22 but rate=5%
need 10%
⇒ Govt. Intervention
PM-AASHA,
PM-KISAN
AASHA
- To fix MSP probs
- Agri, CSect
- Trader: t
- MSP: m
- Govt. pays m-t
price deficn paym sch
- Price supp sch
- Pvt procum stockist sch
Direct ₹ w/o selling
= PM KISAN
2k*3= 6k
Criticism
- ❌ landless, tribal
- 5hec min ip cost= 50k
- state gov better schs
- Successive ES noted
farming not profitable
- frmr@ mercy APMC-rain
- notable init to empower
MSP
- MSP, open ended procrm
- What? 14K + 6R+3Cash
- Agro min→CCEA
- Swaminathan com C2
Procurement?
- FCI, NAFED, etc.
- Agro min, CSect
- Cost: MSP + bonus +
procum + distri
+ve
- ❌distress sale
- adv. info
- price signal to mkt
FCI→Statu: ConsumerAff
- Procurement@ MSP
- Distri thru PDS
- Maintain buffer stock
-ve
- Populism
- Storage capac
- Economic cost⏫
- extra budgetary
spending⏫
Limitations
- Rice & wheat
- big towns
- decent procurm
@ state ❌ success
Recomm:ES20
- 🔽 subsidy burden
charge ⏫ for less poor
- Cndtl cash transfer DBT
- Agri storage & trnspt
- FCI & others
- Kisan Rail
- Krishi Udaan
- Diversify export basket
- Div. destinations
- boost Val Added exp
- help frmrs w/ SPS issue
- Ethnic prod branding
- Focus on RnD
- EoDB, Infra
- Agri startup fund