CURRENT AFFAIRS

Agriculture

www.iasscore.in
www.iasscore.in

Notes

Contents

Farmer Suicides

Other Development
A. Soil DegradationB.

Organic farming : Pramparagat Krishi Vikas Yojana - (Traditional Farming

Improvement Programme)

C.

Union Government launcheed NOWCAST (a weather alert system) and crop Insurance
Web portal

D. Agriculture extension : steps taken

E.

National Agricultural Market through Agri-Tech Infrastructure Fund

Shanta Prasad panel - High Level Committee on Restructuring of FCI

www.iasscore.in

Notes

www.iasscore.in

Farmer Suicides

Notes

Present status 1.

According to figures of the Ministry of Agriculture published in April

2015, the total number of suicides committed by farmers due to agrarian
issues in the last three years stands at 3313.

2.

The five States - Maharashtra, Telangana, Karnataka, Andhra Pradesh and

Kerala - accounted for 3301 of them.

3.

Farmer suicides account for 11.2% of all suicides in India.

Reasons Activists and scholars have offered a number of conflicting reasons for farmer
suicides, such as monsoon failure, high debt burdens, genetically modified crops,
government policies, public mental health, personal issues and family problems.
There are also accusation of states fudging the data on farmer suicides.
1.

Drought
a.

2.

New Economic Policy

a.

3.

Left leaning economists like Usha Patnaik, Jayati Ghosh and Prabhat
Patnaik suggest that structural changes in the macro-economic policy
of Indian Government that favoured privatisation, liberalisation and
globalisation is the root cause of farmer suicides. Others dispute
over such views.

GM crops
a.

4.

As much as 79.5% of India's farmland relies on flooding during

monsoon season, so inadequate rainfall can cause droughts, making
crop failure more common. In the regions that have experienced
droughts, crop yields have declined, and food for cattle has become
scarce. Agricultural regions that have been affected by droughts have
subsequently seen their suicide rates being increased.

A number of social activist groups and studies proposed a link between

GM crops and farmer suicides. Bt cotton (Bacillus thuringiensis cotton)
was claimed to be responsible for farmer suicides. The Bt cotton
seeds cost nearly twice as much as ordinary ones. The higher costs
forced many farmers into taking ever larger loans, often from private
moneylenders charging exorbitant interest rates (60% a year). The
moneylender was claimed to collect his dues at harvest time, by
compelling farmers to sell their cotton to him at a price lower than
it can fetch in the market. According to activists, this created a
source of debt and economic stress, ultimately suicides, among
farmers. Scholars claim that this Bt cotton theory made certain
assumptions and ignored field reality.

Suicide ideation a.

Southern Indian states have ten times higher rates of suicides than
some northern states. This difference, they claim, is not because of
misclassification of a person's death, for example as homicide, but
because of regional causes. The most common cause for suicide in
India's southern states are a combination of social issues, such as
interpersonal and family problems, financial difficulties, and pre-

www.iasscore.in

existing mental illness. Suicidal ideation is as culturally accepted in

south India as in some high-income countries. The high suicide rates
in southern states of India may be, as suggested by Patel el al, in part
because of social acceptance of suicide as a method to deal with
difficulties.
5.

State government field surveys a.

The Government of Maharashtra, concerned about the highest total

number of farmer suicides among its rural populations, commissioned
its own study for reasons. At its behest, Indira Gandhi Institute of
Development Research in Mumbai did field research and found the
top causes of farmers suicides to be: debt, low income and crop
failure, family issues such as illness and inability to pay celebration
expenses for daughter's marriage, lack of secondary income
occupations and lack of value-added opportunities.

Responses to farmer's suicides 1.

The government appointed a number of enquiries to look into the causes

of farmers suicide and farm related distress in general. Rashtriya Krishak
Aayog (National Farmer Commission) visited all suicide prone farming
regions of India, then in 2006 published three reports with its
recommendations.

2.

In 2006, the Government of India identified 31 districts in the four states

of Andhra Pradesh, Maharashtra, Karnataka, and Kerala with high relative
incidence of farmers suicides. A special rehabilitation package was launched
to mitigate the distress of these farmers.

3.

The Government of India next implemented the Agricultural debt Waiver

and Debt Relief Scheme in 2008 to benefit over 36 million farmers at the
cost of 653 billion(US$9.9 billion). This spending was aimed at writing of
part off loan principal as well as the interest owed by the farmers. Direct
agricultural loan by stressed farmers under so-called Kisan Credit Card
were also to be covered under this Scheme.

4.

The State Government of Maharashtra made it illegal, in 2010, for nonlicensed moneylenders from seeking loan repayment. The State
Government also announced that it will from Village Farmer Self Help
Groups, that will disburse government financed loans,a low rate Crop
Insurance program whose premium will be paid 50% by farmer and 50%
by government, launch of alternate income opportunities such as poultry,
dairy and sericulture for farmers in high suicide prone districts.

5.

In 2013, the Government of India launched a Special Livestock Sector

and Fisheries Package for farmers suicide-prone regions of Andhra Pradesh,
Maharashtra, Karnataka and Kerala.

Effectiveness of government response 1.

The government's response and relief packages have generally been

ineffective, misdirected and flawed, states Surinder Sud. It has focused on
credit and loan, rather than income, productivity and farmer prosperity.
Assistance in paying off outstanding principal and interest helps the money
lenders, but has failed to create reliable and good sources of income for
the farmer going forward. The usurious moneylenders continue to offer
loans at interest rates between 24 to 50 percent, while income generating
potential of the land the farmer works on has remained low and subject
to weather conditions.

Notes

www.iasscore.in

2.

Sud states that the government has failed to understand that debt relief
just postpones the problem and a more lasting answer to farmer distress
can only come from reliable income sources, higher crop yields per hectare,
irrigation and other infrastructure security. Golait, in a Reserve Bank Of
India paper, acknowledged the positive role of crop diversification initiative
announced in government's response to reports of farmer suicides. Golait
added, "Indian agriculture still suffers from: i) poor productivity, ii) falling
water levels, iii) expensive credit, iv) a distorted market, v) many middlemen
and intermediaries who increase cost but do not add much value, vi) laws
that stifle private investment, vii) controlled prices, viii) poor infrastructure,
and ix) inappropriate research. Thus the approach with mere emphasis on
credit in isolation from the above factors will not help agriculture".

3.

Furthermore, recommended Golait, a more pro-active role in creating and

maintaining reliable irrigation and other agriculture infrastructure is necessary
to address farmer distress in India.

Notes

Suggestions Short term response

One response in the short run must be to enhance

targeted support for the vulnerable in agriculture,
namely the small farmer and agricultural labourer.
The MGNREGA program has the virtue of being
reasonably well-targeted. The challenge here is to build
on this feature and use the program to build assets
such as rural roads, micro-irrrigation and water
management, while also shoring up rural incomes.

Medium
response

In the medium-term, the time is ripe for a more broadbased response to the challenges in agriculture and to
ensure that agriculture grows at about 4 percent on a
sustained basis.

term

One of the most striking problems is how unintegrated

and distortions-ridden are our agricultural markets (see
chapter 8 of this volume, which also offers possible
solutions). India needs a national common market
for agricultural commodities by making the
Agricultural Produce Market Committees (APMCs)
just one among many options available for the farmers
to sell their produce.

Other Developments
A. Soil Degradation1.

Soil fertility is declining due to a.

Excessive use of chemical pesticides and fertilizers.

b.

Excessive use of irrigation which leads to water logging and thus

leads to Stalinization and alkalization of soils and water logging.

c.

Cultivating same crop repeatedly in the area. That's why crop rotation
is suggested.

d.

Duration of fallow has substantially reduced owing to multiple

cropping. This has obliterated the process of natural fertilization
such as nitrogen fixation.

www.iasscore.in

2.

e.

Soil erosion due to wind and running water.

f.

Thus due to declining soil fertility soil testing is vital. In this sample
of soil is analyzed and recommendations are made about what
elements are needed to optimize it.

Soil health card a.

It has been introduced for the purpose of center to assist the State
Governments in issuing soil health cards to all farmers in the country.

b.

Soil health card will provide the following information to farmers

c.
3.

i.

nutrient status of their soil.

ii.

recommendation on appropriate dosage of nutrients.

Soil Health status will be assessed regularly in a cycle of 3 years.

Soil Health Card portal a.

Launched in July 2015

b.

Serves as a single unified platform for

i.

registration of soil samples,

ii.

recording test results of soil samples and

iii. generation of Soil Health Card (SHC) along with Fertilizer

Recommendations.
B.

Organic farming : Pramparagat Krishi Vikas Yojana - (Traditional

Farming Improvement Programme)

1.

In 2015-16 budget, govt announced it. An amount of Rs 300 crore has

been earmarked for the scheme for the year 2015-16.

2.

It is a Cluster based programme to encourage the farmers for taking up

organic farming.

3.

Its workinga.

Fifty or more farmers will form a cluster having 50 acre land to take
up the organic farming under the scheme.In this way during three
years 10,000 clusters will be formed covering 5.0 lakh acre area
under organic farming.

b.

Every farmer will be provided Rs. 20,000 per acre in three years for
need to harvesting of crops and to transport produce to the market.

c.

There will be no liability on the farmers for expenditure on

certification.

Organic farming:
1.

Participatory Guarantee System portal a.

It is a portal launched by union government for certifying organic

products in accordance with the standards laid down.

b.

The Participatory Guarantee System portal provides for online

registration, approval, documentation, record of inspection and
Certification of organic products produced by a farmer.

Notes

www.iasscore.in

2.

3.

Organic farming is a system which a.

Avoids synthetic inputs (such as fertilizers, pesticides, hormones,

feed additives etc) and

b.

Uses natural fertilizers (compost made from leaves, legumes), natural

insect predators are used for prest control

c.

Relies upon crop rotations, crop residues, animal manures, off-farm

organic waste and biological system of nutrient mobilization and
plant protection.

d.

Thus it maintains the ecological balance.

Evolution :
a.

4.

5.

6.

Notes

In ancient and medieval era the traditional farming in ancient and

medieval era was organic farming only as there was no use of
chemicals. After the industrial revolution, inorganic methods were
introduced (i.e. chemical fertilizers, pesticides etc). But since 1940s
and people realized its negative effects and led to the organic
movement.

Advantages
a.

Use of chemical fertilizers leads to various ecological harms like

affecting water quality (ethrophication), GHG emission in its
production and use, soil acidification (&thus poor soil quality). And
all these affects human health. So these problems of chemical
fertilizers are removed.

b.

As no natural gas and petro products are consumed in making

fertilizers thus it saves energy.

c.

Farmer's income can increase as their money is saved on costlier

agricultural inputs.

d.

There is huge demand for organic food in international market, thus

can earn money and boost export.

e.

Although debatable, but studies across the countries have shown that
organically grown food has more nutritional value than those obtained
by chemical farming thus providing us with healthy foods.

f.

Has increased productivity.

Indian scenario a.

The number of organic farmers are growing. Area under organic

certification has increased from 42,000 ha in 2003 to 4.4 million ha
in 2010.

b.

But if we compare with others and India's potential then it is only

a small industry due to various challenges

Challenges a.

Low awareness among the people.

b.

Apprehensions among farmers to shift to a new method are that the

yields from organic farming are less than modern agricultural farming.

www.iasscore.in

7.

c.

Inadequate infrastructure and marketing problem

d.

Vested interests i.e. lobbying by all promoters of chemical fertilizers

Case studies of india

a.

Sikkim : In nov 2012, 40 p.c. of Sikkim was under organic cultivation

and it is aiming for to cover the entire Sikkim by organic farming.

b.

In Feb 2013, Rakesh Kumar of Nalanda district set a new world

record of potato production by producing 1,088 quintals per hectare.
He relied on organic farming.

C.

Union Government launcheed NOWCAST (a weather alert system) and

crop Insurance Web portal

1.

NOWCAST weather alert system -

a.

It will provide free SMS service alerts on extreme weather conditions (exhailstorm) to over one crore registered farmers on their mobile phones.

b.

The free SMS alerts will be sent in Hindi, English and regional languages
as per farmers' requests.

c.

It will be issued to the farmers whose mobile phones are already registered
on the government's mKisan portal

d.

Under this initiative, the extreme weather data originated from IMD will
be updated on mKisan portal using a web service. Later, from mKisan
portal the warnings regarding extreme weather conditions will be
automatically transmitted by SMS to farmers located at district and block
levels.

2.

Insurance Web-Portal

a.

It will be used to create awareness and encourage farmers to insure their

crops by taking advantage of existing three schemes.

D. Agriculture extension : steps taken

1.

2.

Kisan TV a.

Budget 2014-15 allocated Rs100 crore to Kisan TV for disseminating

real-time information to farmers regarding new farming techniques,
water conservation, organic farming, etc.

b.

This will partly make up for the existing adverse ratio of one extension
worker for every 800 to 1000 farmers and provide farmers a direct
interface with the agricultural experts.

c.

It was launched on May 26.

IARI, @ Barhi Jharkhand a.

In june 2015 PM laid the foundation Stone of the Indian Agricultural

Research Institute at Barhi in Jharkhand

E.

National Agricultural Market through Agri-Tech Infrastructure Fund

1.

In July 2015, cabinet approved the scheme for "Promotion of National

Agricultural Market through Agri-Tech Infrastructure Fund (ATIF)"

2.

Aim is to Create a unified national market through provision of the

common e-platform.

Notes

www.iasscore.in

3.

How will it work?

a.

Under this, 585 regulated markets across the country will be integrated
with the common e-platform within 3 years (2015-16: 250 mandis
in 2015-6, 200 mandis in 2016-17 and 135 in 2017-18).

b.

This common e-market platform will be deployed in the selected

585 regulated wholesale markets in States/UTs desirous of joining
the e-platform.

c.

For integration with the e-platform, the States/UTs will have to take
3 reforms
i.

a single license to be valid across the State,

ii.

single point levy of market fee and

Notes

iii. provision for electronic auction as a mode for price discovery.

4.

5.

6.

Other facts a.

An amount of Rs. 200 crore has been earmarked for the scheme.

b.

The Scheme is applicable on All-India basis.

c.

Small Farmers Agribusiness Consortium (SFAC) will be the lead

agency for the development of the National e-Market by the Ministry
of Agriculture, and they will select a service provider through open
bidding.

It will help to overcome the challenges posed by the present agrimarketing system namely a.

Fragmentation of State into multiple market areas each administered

by separate APMC,

b.

Multiple levy of mandi fees,

c.

Requirement for multiple license for trading in different APMCs,

d.

Licensing barriers leading to conditions of monopoly,

e.

Poor quality of infrastructure and low use of technology,

f.

Information asymmetry, opaque process for price discovery,

g.

High level of market charges,

h.

Movement controls, etc.

Farmers will have improved access to market related information and

better price discovery through a more efficient, transparent and competitive
marketing platform, which gives him access to a greater number of buyers.

Shanta Prasad panel -High Level Committee on

Restructuring of FCI
1.

Government set up a High Level Committee (HLC) in August 2014

under the chairmanship of Shanta Kumar to suggest restructuring of FCI.

2.

Report was released on 22nd Jan, 2015.

3.

Recommendations -

www.iasscore.in

W.r.t Procurement

On storage

On Buffer Stocking
Operations
and
Liquidation Policy

On PDS and NF5A

related issues

The FCI should hand over all procurement

operations of wheat, paddy, and rice to states that
have created reasonable infrastr ucture for
procurement.

Reduce statutory levies including commissions

uniformly to 3-4 % of MSP.

The Government of India must provide better

price support operations for pulses and oilseeds

FCI should outsource its stocking operations to

various agencies.

Covered and plinth (CAP) storage should be

gradually phased out. Replace it with Silo bag
technology and conventional storages

Need a transparent liquidation policy to liquidate

stocks in OMSS or in export markets. This will
automatically kick-in when FCI is faced with
surplus stocks than buffer norms.

Give Greater flexibility to FCI to operate in

OMSS and export markets.

Coverage of population should be brought down

to around 40% from present 67%.

Cash transfers in PDS should be gradually

introduced.

Each beneficiary should be given 7 kg of grain

instead of 5 kg under the Act.

Due to huge leakages in the PDS range (40-50 %),

GOI should defer implementation of the NFSA
in states that

have not done end to end computerization

have not put the list of beneficiaries online

for anyone to verify and

have not set up vigilance committees to

check pilferage from PDS.

Farmers should be given direct cash subsidy (of

about Rs 7000/ha).

After doing it, fertilizer sector can be deregulated.

End to end computerization of the entire food

management system, starting from procurement
from fanners; to stocking movement and finally
distribution through the TPDS.

Primary focus of FCI

creating competition in every segment of the

foodgrain supply chain so that overall costs of
the system are reduced.

On direct subsidy
to farmers

On end to end
Computerization

10

Notes