Economic Survey 2018-19 For UPSC Aspirants

Lecture by Mr. Sivakumar, Faculty, Kamaraj IAS Academy, Chennai

Agriculture

1. Government Intervention in Agricultural Sector and Growth in India

• Phase 1 (1951 - 65) - Five year plan and Food Security
• Phase 2 (1965 -91) -Regulation of the Sector (i.e. Agriculture Pricing Policy 1965)
• Phase 3 (1991 - till) Deregulation (especially post-2007)

2. Problems of Commercialization of Agriculture?

3. Deregulation of Agriculture sector

• Reforms in APMC Act (Agriculture Produce Marketing)
• Restructuring Food Corporation of India (FCI) - ShanthaKumar Committee (2015)
• National Food Security Act and Public Distribution System (PDS)
• Development of Food Processing Industries.
• FDI in Multi-Brand Retail Sector (70% Products are Agriculture Produce)
• Doubling of Farmer's Income by 2022
• e-NAM (National Agricultural Market)
• Application of ICT in Resource-Efficient Sustainable Agriculture.
• Improvement and Focus on Non-Farm Income for Small-Holding Farmers.

4. Farm Inputs and Agriculture Methods: Infusion of Science and Technology

Tradition -> Modern -> Post-Modern

5. Strategies for Doubling Farm Income by 2022

• Revenue Efficiency: Small Holder Agriculture (85%)
• Improvement in Crop Productivity
• Improvement in Livestock Productivity
• Resource Use Efficiency (esp. Water)
• Increase in Cropping Intensity
• Diversification towards High-Value Crops.
• Improvement in Real prices (Market Reform, eliminating Middleman)
• Shift from Farm - to Non-Farm Activities (Fisheries, Diary, Livestock)
• Contract Farming (Model Act)
• Agriculture leasing system.
• GRAMIN Haats (Centres of Aggregation of Farm Commodities)
• e-NAM
• Soil Health Cards (Rationalize Chemical Fertilizer usage)
• Water Efficient Usage System
• Crop Insurance Scheme (PM Fasal Bima Yojan)
• Interest Subvention for Farmers (upto 5%)
• Kisan Credit Cards to engage in Animal Husbandry and Fisheries.
• MSP at 1.5 times the cost of production.

6. Focus in Agriculture: Shift

• Land Productivity - > Resource Efficient usage.
• Procurement Support System -> Micro-Irrigation supported cropping pattern.
• Saving in Energy and Fertilizer Consumption - 40-50%
• Cropping Pattern in India
• Highly skewed towards crops that are water intensive (Paddy & Sugarcane)
• It consume more that 60% of Irrigation Water available.
• Implicit Subsidy and Explicit Subsidy
• By 2050: India to be Global Hot spot for Water Insecurity
• Efficient usage of fertilizers and Pesticides
• Increased usage of Fertilizer since 2002
• Fertilizer consumption gradually declining trend since 2011
• Rationalization of Fertilizer usage and switching own to Organic Farming.
• Fertilizer Response Trend: Declining trend - It is an indicator of Declining Responsiveness of Soil Fertility to Fertilizer Application.
• Reason? Inadequate & Imbalance in usage, Multi-Nutrient Deficiency, Lack of Farmer Awareness, Poor Crop Management.
• Fertilizer Efficient Usage: Optimal dose based on Soil Health Status, Promotion of Neem-coated Urea, Promotion of Micro-Nutrient, Promotion of Water-Soluble Fertilizers.
• Increasing Sustainability in Agriculture (Organic & Natural Farming)
• National Mission for Sustainable Agriculture (NMSA)
• Pram Paragat Krishi Vikas Yojana (PKVY)
• Rashtriya Krishi Vikas Yojana (RKVY)
• Mission Organic Value Chain Development for North Eastern Region (MOV CDNER)
• PKVY Scheme 2018 Guidelines: Various Organic Farming Models - State can adopt any one form of Farming
• Natural Farming
• Vedic Farming
• Cow Farming
• Homa Farming
• ZBNF (Zero Based Natural Farming) - 1, 63, 034 Farmed engaged in this method.
• Karnataka, Himachal Pradesh, Andhra are leading states
• Adopting Appropriate Technologies
• Custom Hiring Centres  (CHC)- promote use of High-Tech Machinery - Mechanization for Small and Medium Farmers - Hilly and Difficult Terrain.
• From 2014-15  to 2017 -18, Total of 8162 CHCs are established under the sub-mission (Mechanization of Agriculture)
• Implementation of ICTs - Optimization of Resource use Efficiency - among Small 
• Mobile Phone, Soil Health, Weather, Market Access, Storage Facilities, Financial Inclusion, Early Warning Systems, etcetera.
• AMFFRI (Agricultural Marketing and Farmer Friendly Reforms Index)
• launched by NITI Aayog (in 2016)
• Index to Rank States and UTs on implementation of 7 provisions proposed under Model APMC Act.
• e-NAM initiative, Special Treatment to Fruit and Vegetables for Marketing, Levels of Taxes in Mandis.
• Three Indicator:
1. Ease of Doing Business: Competitiveness, Efficiency and Transparency of Agri-Market.
2. Facilitation and Liberalization of Land Lease (Refer: Model Contract Farming Act: https://www.prsindia.org/theprsblog/explained-draft-model-contract-farming-act-2018?page=3)
3. Freedom given to farmers felling and Transit of trees grown on private land.
• Score (0 to 100 Scale)
• Maharashtra(80) > Gujarat(71.5) > Rajasthan > Madhya Pradesh.
• Schemes to Improve livestock and Dairy Productivity
• Rashtriya Gokul Mission
• E-Pashu Haat Portal
• National Livestock Mission
• Livestock Health and Disease control Scheme
• Dairy Development
• Agriculture Allied: Fisheries Sector
• Fisheries and Aquaculture Infrastructure Development Fund (FIDF): total Fund of Rs.7,522.48 Crore.
• Draft NIFAP 2019( National Inland Fisheries and Aquaculture Policy 2019)
• Refer: https://www.prsindia.org/report-summaries/development-inland-fisheries-and-aquaculture
• Land Reforms (Pre-1951 and Post reform Period)
• Suggestion in Economic Survey (2012-13)
• To map land carefully and assign conclusive title.
• NLRMP 2008 (National Land Records Modernization Programme)
• Presumptive title and Conclusive title.
• Digitization and reduce land transaction cost.
• To facilitate land leasing.
• Widespread prohibition of land leasing
• Rural-Urban Migration
• Feminization of Agriculture, Disguished Unemployment
• Facility for Landless Farmers.
• Education, Skill Development, Industrialization.
• Lnad Ownership and Long-Term Tenancy (Leasing Market).
• To create fair and speedy process of land acquisition of public purpose
• Large projects with a public purpose
• Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill 2011
• NIMZ (National Industrial and Manufacturing Zone) and Industrial Corridors part of National Manufacturing Policy (NMP 2012 -Targets to create 100 Million jobs by 2022)
• Need for Economic Growth
• Cost of Rehabilitation and Resettlement.
• High Level Committee: Restructuring FCI (Food Corporation of India)
• Shantha Kumar Committee 2014 (Refer: https://pib.gov.in/newsite/PrintRelease.aspx?relid=114860)
• To improve operational efficiency and financial management.
• Procurement - Decentralized System
• PDS & NFSA
• Stock and Movment
• Buffer Stocking and Liquidation Policy
• Food Security, Welfare Obligation
• Open Market Sale to check Inflation.
• WTO Agreement on Agriculture (AOA): Public Procurement (Peace Clause), Market Access to Indian Agriculture Sector, Deregulation of Agriculture System.

Watch the Full Lecture....

Part II - Lecture on Economic Survey 2018-19

To be updated.....