2022-23: USD 53.
1 billion
Data
India exports more than 7 percent
of its food grains
Low per capita productivity
Supply SIde Poor Export Competitiveness
Government Policies: Inconsistent
and restrictive regime
Economic
Tariff Barriers
Issues Demand Side Non-Tariff Measures
International Trade Agreements
Post Pandemic challenges
Existing at the lower end of the
global value chain
Other Issues
Declining Exports
Agriculture Export Promotion
Plan of APEDA
NPOP (National Programme for
Organic Production)
Agri Udaan Program
Agriculture Exports Initiatives SAMPADA
MSP models, Model Land leasing
NITI Aayog
Act etc
Market Access Initiatives, Trade
Infrastructure for Export Scheme,
APEDA, MPEDA, Tea board,
Other Initiatives Rubber boards, Spices board,
Land record digitisation,
Merchandise Exports from India
Scheme
High Level Group (HLEG) on agri
exports Recommendations
Holistic Institutional, operational
Ho
and infrastructural reforms
High value agri commodities with
relative advantage for India
focused export policy - Organic
produce, Basmati rice, marine
produce, vegetables etc
Rt Re negotiations of RTAs and BTAs
Information symmetry on Market
I
for exporters
Cu Convergence of multiple schemes
Link exporters/processors to
L
producers directly
WF
Testing infrastructure to
Tu harmonize quality with
international standards
Re visit issues of farm subsidies,
market denials and import duties
R
on bilateral, regional and global
trade forums
Efficient global and domestic
E
value chains development
Paradigm shift from access
Pe
exports to targeted exports
Focus on FPIs with high quality
Focus
training and skilling initiatives
Low Number of APMCs
Infrastructure
Lack of Infrastructure in Agricultural
and Market
Markets
Access
High Wastages in Supply Chain
Compulsory Selling to APMCs or
Government Procurement Node at MSP
Fragmentation of Markets
Market
Dynamics and
Lack of Unrestricted Movement
Farmer
Realisation
Less Farmers’ Price Realisation
High Marketing Cost
Artificial Monopoly and Lack of Competition
Exploitation by Intermediaries
Issues
Corruption/Collusion by Adhatiyas
Market
Practices Political Interference & Corruption and
and Cartelisation
Governance
Limited Farmer Representation
High Incidence of Market Charges
Non-Transparency in Utilization of Levies
Collected
Open Auction
Discourages Direct Selling
Selling Can range
Mechanisms and High Mandi Fees from 0.5% to
Pricing 5%.
APMCs
Lack of Linkages: Interstate and
intrastate fragmentation
Lack of MSP Updation
“Agriculture Index” by NITI Aayog
SAMPADA, Operation Greens, “TOP to
TOTAL”, Promotion of FPOs Scheme, E-NAM
E-marketing Portal for Organic products.
Transport and Marketing Assistance
Scheme by MOCI for faster export focused
movements.
GrAMs
Schemes Agriculture Fund
Model Agriculture Produce and Livestock
Marketing (Promotion and Facilitation) Act,
2017
Integrated Scheme for Agri Marketing
(ISAM)
Kisan Rail services
Krishi UDAN
Agri Marketing Funds
Recommendation of Dalwai
Committee to create mini-markets
to bridge the deficiency of APMCs.
AgTech startups should be
focused upon for a price
discovery mechanism.
Producer consolidation and
contract farming : Consolidation
WF
of small and fragmented farms
into more viable holdings will
improve producers’ access to
finance and quality inputs,
besides enabling better price
realisations.
PPP model in Agri marketing and
transport (Ex: Uberization of Agri
transport)
APMC
Unified Market Area
Setting Up of Market Yards
Features of
Model Market Yard of National
Agricultural Importance (MNI)
Produce
and Promotion of Direct Interface
Livestock
Freedom of Choice to Farmers
Marketing
(Promotion Promotion of National Market
&
Facilitation) Promotion of E-Trading
(APLM) Act,
2017 Single Point Levy of Market Fee
Across State
Full Democratization of Market
Committee and Rationalization of
Market Fee and Commission
Charges
Technological Stagnation in
Agriculture
Increased Dependence on Food
Imports
Need Political and Natural Crises
Food Security Threats
Geopolitical Pressures
Introduction of new high-yielding
wheat varieties (HYV) from
Mexico.
1
Establishment of the Agricultural
Prices Commission and Food
Corporation of India (FCI) to
manage minimum support prices
(MSP)
Spread of HYV technology to rice.
Production and yields of
Phases 2 foodgrains grew at 3.1% and 2.5%
per annum, respectively.
Reduction in rural poverty from
56% to 50%.
India maintained its status as a
food self-sufficient country.
Green Revolution Significant increases in rice and
3
wheat production.
Creation of large grain buffer
stocks.
Increased Demand for
Agricultural Laborers
Increased Production
Achievements Spillover Impact on Industries
Increased Income Levels of
Farmers
Enhanced Food Security
Exclusion of Non-Staple and Non-
Food Crops
Limited High-Yield Variety (HYV)
Seeds
Increased Regional Disparities
Issues
and Limited Impact
Environmental Degradation
Water-Intensive Crops and Water
Table Reduction
Unemployment
Fragmented Land Holdings
Stagnant Production
Pre-Harvest Issues Irrigation Problems
Access to Formal Credit
Agrarian High input costs
Distress
Over Reliance on Monsoons
Factors leading to it Production Issues
Presence of weeds and pests
Market Fluctuations
Absent Market Opportunities
Post-Harvest Issues
Lackadaisical implementation of
schemes/policies
Inadequate Infrastructure
Farmer Suicide
Debt
Farmers
Poverty
Low Price Realization
Rural to Urban Migration
Village
Feminization of Agriculture
Impact
Over-Urbanization
Cities
Food Inflation
Decline in Agricultural Export
Government Human Development Index
Economic Transformation
Data 11,290 suicides: 2021 (NCRB)
More concentrated in Vidarbha,
Marathwada, Northern Karnataka
Regional Factor etc
Mostly in drought prone areas
Lower than normal monsoon
rainfall
Geographical Rainfed area
Non-diversified agriculture
Decreasing soil productivity
Falling prices of agri commodities
Low penetration of crop insurance
Delay in insurance disbursal
Reasons Institutional
Farmer Inadequate infrastructure:
Storage, Logistics and processing
Suicide leading to distress sale
Poor agro-ecological planning
Inadequate R&D levels: Poor
quality seeds used
Leading to low productivity
Technological Crops like Bt-cotton failed in
rainfed regions or due to other
reasons (Whitefly attacks in
Punjab)
High farm mechanisation costs
W - Water Diversification and
Water Harvesting:
E - Ensure Better Price Realisation
L - Land Farming Techniques (Dry)
F - Financial Security through
WF Mixed Farming and Institutional
Credit
A - Agriculture Marketing Reforms
R - R&D on Resistant Crops
E - Expand Crop Diversification
Between 2012 to 2021, 13 Indian
Data states have implemented FLW
schemes.
Stop vicious cycle of indebtedness
Provides immediate relief until
structural reforms are
implemented.
Access to formal credits: Helps
Farmers clear previous loans, enabling
access to new loans from formal
institutions. (Reduces Debt
Overhang)
Creates Resilience in Farmers:
Reduces vulnerabilities from
Argument
climate change and adverse trade
s in
deals.
Favour
Clears NPAs, freeing up resources
Banks for new loans and economic
activities.
Ensures Food security
Society
State’s moral obligation: It is the
duty of a welfare state to support
its population in distress.
Moral Hazard
Loan Does not address “Root Cause”
Waivers
Prone to errors in inclusion and
Farmers
exclusion.
Uncertain Impact
Agri labourers: not covered
Eroding healthy credit culture
Banks
Increased NPAs
Unfavourabl
e Arguments Moral responsibility of states to
do reforms
State Demand side Inflation
Affects fiscal consolidation
Reduced public investment
Society Prone to corruption
Increase the Coverage and
Availability of Institutional Credit
Effective Law to Regulate Non-
Institutional Sources of Credit
Create a Farmer Distress Index
Use Grant to Support Distressed
Farmers
WF
Credit Guarantee Fund for
Agricultural Loans
Improve Farmer’s Access to
Markets
Address Infrastructure Deficit in
Rural Areas
Effectively Deploy Crop Insurance
Population Growth
Need Threatening Food and Nutritional Security
Impacts of Climate Change
High Vulnerability: 51% of India's cultivated
area is rainfed, making it highly susceptible
to climate variability and extreme weather
events.
Temperature Increase: Average
temperature rise of ~0.7°C from 1901 to
2018, primarily due to greenhouse gases,
affecting crop growth cycles and
productivity.
Increased dry spells.
Changes in Rainfall Patterns:
increase in daily precipitation extremes.
India Specific Needs
Increased Drought Frequency
Increased Flood and Cyclone Proneness
impacts agricultural stability.
Climate Smart Leading to increased vulnerability to
infestations
Agriculture Modified Pest Behavior:
Eg, Locust attack 2020
Economic Growth and Poverty Reduction
Collaborative Agricultural Supply Chain
Robust Metrics and Assessment
Financial and Economic Barriers
Challenges
Technological and Knowledge Barriers
Policy and Regulatory Challenges
Environmental and Climate Variability
Creation of Single Nodal Agency
Comprehensive Climate Change Mitigation
Prominence to Village Panchayats
Enhancing KVKs
Ensuring Food and Nutritional Security
Promotion of Crop Diversification and
Water Conservation
Research in Climate Smart Practices
Availability of Farm Inputs and Finance
WF
Promotion of Organic/Natural Farming
Upgradation/Digitization of Agriculture
Markets
Promotion of Forest Conservation and
Natural Wetlands
Promotion of Millets and Coarse Grains
Support for Carbon Markets
Information Dissemination and Training for
Farmers
Expedite Recruitment in Research Institutes
Environmentally Friendly
Practices
Reduced Indebtedness
Enhanced Soil Fertility
Benefits of ZBNF
Versatility and Water
Conservation
Promotion of Biodiversity
Nutritional Benefits
Reversion to conventional farming
ZBNF
Uncertain impact on productivity
and income
Issues
Declining population of Indian
breed cows
Government expenditure disparity
Bharatiya Prakritik Krishi
Steps Paddhati (BPKP) Scheme for
Natural Farming
Strengthening Farmer Education
Promoting Indigenous Cow Breeds
Enhancing Research and
Development
Way Forward: Strengthening Market Linkages
Government Support and Policy
Reforms
Scaling Up ZBNF Adoption
Collaboration and Knowledge
Sharing
Rising Indebtedness
Land Fragmentation
Low average monthly income
Need High Input Costs
Rampant Poverty
Population pressure on the sector
Low price remuneration
Liberal definition of farmers
Agri diversificationc
Incentivize private investment in
agri sub-sectors
Doubing Farmers
Income "Farmers as Partners"
Reform Agri Marketing
State laws based on Model APLM
Act, 2017
Increase access to institutional
credit
Increase insurance penetration
for risk mitigation
Strengthen forward linkages with
MSMEs to grow employment as
Dalwai Reccom well as farm income
Land pooling incentivisation
Model Land Leasing Act, 2016
Undertake land reforms
Increase pace of land record
digitisation
Draft Model Contract Farming Act
Bridge Data Gaps for evidence
based policy making
Climate Change mitigation based
on a micro agro-climatic zone
approach
Scale neutral technology keeping
in mind varying farm sizes
Establish a multi stakeholder
nodal executive body at national
level
PM’s 7 point Action Plan
Budget allocation: 1,25,035.79
crores in 2023-24 .
Income support: PM KISAN
Steps Pradhan Mantri Fasal Bima
taken Yojana (PMFBY)
for
doubling Institutional credit
farmer’s Fixing of Minimum Support Price
income (MSP)
Promotion of organic farming
Micro Irrigation Fund
National Beekeeping and Honey
DFI Mission (NBHM)
MIDH - Cluster Development
Programme
Modernize Agriculture
Niti Aayog Resource utilisation efficiency
Strategy
Strengthen Extension services
for New
India @75 Agri diversification
Value Chain Development