Governance Initiatives to Make Agriculture Profitable
Governance Initiatives to Make Agriculture Profitable
Question: Various governance measures have been taken to make agriculture a profitable profession. Provide an outline of these.
- Numerous governance initiatives have been taken such as quality improvement and availability of essential items such as electricity, irrigation, seeds and fertilisers
- GoI is also implementing numerous Missions, Schemes and Projects to ensure production, availability and distribution of quality seeds and fertilisers
- Deendayal Upadhyaya Gram Jyoti Yojana has been launched to provide constant power supply to farmers via separation of agriculture and non-agriculture feeders
- Efforts are also on to strengthen sub transmission and distribution infrastructure in rural areas
- Rajiv Gandhi Grameen Vidyutikaran Yojana has also been covered under DDUGJY and ensures rural electrification
GoI has also provided financial as well as technical assistance to states under the following schemes
- Accelerated Irrigation Benefits Programme, Repair, Renovation and Restoration of Water Bodies Scheme
- CADWM Programme
Financial help is being provided for micro irrigation to farmers and following cultivation schemes have been initiated:
- Mission for Integrated Development of Horticulture (MIDH),
- On-Farm Water Management (OFWM) under National Mission for Sustainable Agriculture (NMSA)
- Rashtriya Krishi Vikas Yojana (RKVY).
- Under OWFM, assistance is being provided at 35% for small and marginal farmers and 25% for farmers for areas up to 5 ha per agriculturalist
- Assistance is 50% and 35% under DPAP, Desert Development Programme and NE and Himalayan regions
- Assistance is being provided under MIDH at 50 percent for establishing eco-friendly housing for farmers up to 4000 square metres.
- RKVY is also promoting these technologies
For raising investments in agriculture, the following schemes are being implemented:
- Rashtriya Krishi Vikas Yojana (RKVY),
- National Food Security Mission (NFSM),
- Mission for Integrated Development of Horticulture (MIDH),
- National Mission on Oilseeds and Oil Palm (NMOOP)
- Grameen Bhandaran Yojana
- Government of India has also issued a framework for PPP for Integrated Agriculture Development to use RKVY to bring private participation in agriculture development projects in the states
- Agriculture sector has also been allocated as priority lending sector which constitutes a minimum of 18% of the total loan portfolio of the banks
- Crop loans are provided to farmers at concessional rates of interest (7% with 3% interest subvention for payments on time)
- Post harvest loan is also available for farmers through negotiable warehouse receipts for six months on the same terms so as to prevent any distress sales
- Crop loans are available to farmers at far cheaper rates than the industrial sector
Fiscal incentive measures have also been undertaken such as the following:
- Tax deduction,
- Waiver/reduction of Excise Duty,
- Reduction of Custom Duty on specific food items etc.
- The aim is to encourage the growth of food processing industries
- APEDA is also implementing numerous schemes for export of processed and agricultural food products
- MIDH seeks to promote seed production for vegetables and spices
- Assistance is provided at the rate of 100% of the total cost to the PSU while in the private sector, help is 50% of the cost as credit linked back end subsidy for 5 ha per farmer
- Numerous programmes have been proposed under the Seeds and Planting Material under NMAET for strengthening the seed sector and encouraging protection of new varieties of plants
- KVKs organised quality seed production and distribution for farmers
- During the past one year, 1.57 lakh quintal seeds of improved varieties and cereal hybrids were distributed through KVKs
- National Mission on Oilseeds and Oil Palm help is provided for purchasing breeder seeds, production and distribution of certified seeds, dissemination of seed mini-kits and demonstration of new technologies
- NMOOP also provides support for producing bio-agents, biofertilisers, vermi-compost and gypsum/pyrite/liming and dolomite
- As per the National Food Security Mission, HYV varsities of hybrids have been released in the past 10 years and distributed under subsidy to farmers under the mission
- NFSM also provides micro nutrients and soil ameliorants as well as biofertilisers at subsidised rates
Facts and Stats
- Fertiliser (Control) Order 1985 has been promulgated for regulating quality fertilisers and Dept of Fertilisers has also provided quality urea and 22 grades of phosphatic and potassic fertilisers at subsidised rates under the order
- Nearly 58% of India depends on agriculture for its livelihood
- Annual income of farmers depends on yield of produce and price it fetches
- Market integration will result in market efficiency
