Daily Current Affairs : 12-July-2023
India’s agriculture sector is vital to the country’s economy, providing livelihoods for approximately 55% of the population. With its extensive land resources and significant agricultural production, India holds a prominent position in the global agricultural landscape. However, the sector faces various challenges that hinder its growth and sustainability. In this context, Niti Aayog, the premier policy think tank of the Indian government, has recently advocated for reforms that emphasize a greater role for the private sector in agriculture. This essay explores the rationale behind Niti Aayog’s plan for reforms and its potential impact on the agriculture sector in India.
India’s Agricultural Significance
India boasts several notable achievements in the agriculture sector. It possesses the world’s largest cattle herd, occupies the largest area for wheat, rice, and cotton cultivation, and is the largest producer of milk, pulses, and spices globally. Furthermore, India ranks as the second-largest producer of fruits, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, and sugar. The agriculture sector in India also holds the record for the second-largest agricultural land globally, providing employment for around half of the country’s population.
Niti Aayog’s Plan for Reforms
- Liberalization and Regulatory Changes: Niti Aayog calls for a paradigm shift in the approach to agriculture, focusing on liberalization and changes in outdated regulations. The aim is to enhance farmers’ income significantly and sustainably. Key recommendations include:
- Advancement in science-led technology
- Increased involvement of the private sector in pre and post-harvest phases
- Liberalized output markets
- Development of an active land lease market
- Emphasis on efficiency in agricultural practices
- Public and Private Investments: Niti Aayog highlights the need for a facilitating regulatory environment and responsible public and private investments in agriculture. The involvement of the private sector is expected to bring about the following positive outcomes:
- Introduction and promotion of knowledge-intensive and skill-intensive practices
- Increased investments from private and corporate sectors
- Establishment of new producer institutions
- Implementation of integrated food system-based mechanisms
- Creation of new linkages between producers and end-users, leading to modernization of the sector
- Addressing Inefficiency: Recognizing inefficiency as a significant impediment to sectoral growth, Niti Aayog proposes a shift towards efficient growth. This involves cost-effective increases in production through the deployment of state-of-the-art technology, smart farming techniques, and maximizing the value of main and by-products.
- Competition among States: To improve the ease of doing farming and farm business, Niti Aayog suggests introducing a system of competition among states. This approach encourages states to adopt efficient agricultural practices, fostering healthy competition and innovation.
Achieving Sustainable Development Goals
Niti Aayog emphasizes the importance of agriculture in achieving various national and global objectives. The agriculture sector plays a key role in realizing the goals of Viksit Bharat (developed India), inclusive development, green growth, and gainful employment during Amrit Kaal (a prosperous period). Additionally, 11 out of the 17 Sustainable Development Goals (SDGs) outlined by the United Nations are directly linked to agriculture, highlighting its significance in achieving the global Sustainable Development Agenda 2030.
Challenges Faced by the Agriculture Sector
The agriculture sector in India confronts several challenges that hinder its growth and sustainability. Key issues include:
- Crop Productivity: India’s crop productivity is comparatively lower than that of advanced and emerging market economies. Fragmented landholdings, inadequate farm mechanization, and insufficient public and private investments contribute to this disparity.
- Environmental Hazards: The current overproduction of crops like rice, wheat, and sugarcane has led to the depletion of groundwater, soil degradation, and significant air pollution. These environmental hazards raise concerns about the sustainability of existing agricultural practices.
- Overutilization of Fertilizers: The government’s substantial expenditure on fertilizer subsidies has resulted in the indiscriminate use of fertilizers, leading to ecological damage, soil infertility, and a toxic food chain.
- Irrigation: Despite being the second-largest irrigated country globally, only one-third of India’s cropped area is under irrigation. This indicates a need for improved irrigation infrastructure and water management techniques.
- Conventional Methods of Cultivation: While some regions have embraced mechanization, the majority of agricultural operations in India still rely on manual labor and conventional tools. This hampers productivity and efficiency.
- Agricultural Marketing: Agricultural marketing in rural India faces significant challenges, with limited access to sound marketing facilities. Farmers often depend on local traders and middlemen, leading to low selling prices for their produce.
Government Initiatives for the Agriculture Sector
The Indian government has implemented several initiatives to address the challenges faced by the agriculture sector. Some notable programs include:
- National e-Governance Plan in Agriculture (NeGPA): Launched in 2010-11, NeGPA utilizes information and communication technology (ICT) to provide timely access to agriculture-related information for farmers.
- National Agriculture Market (eNAM): eNAM is an electronic trading portal that integrates existing agricultural produce market committee (APMC) mandis to create a unified national market for agricultural commodities.
- Pradhan Mantri Fasal Bima Yojana (PMFBY): PMFBY provides insurance coverage for all stages of the crop cycle, including post-harvest risks, with a low premium contribution by farmers.
- National Mission for Sustainable Agriculture (NMSA): NMSA focuses on enhancing agricultural productivity, particularly in rainfed areas, by emphasizing integrated farming, water use efficiency, soil health management, and resource conservation.
- Pradhan Mantri Krishi Sinchayee Yojana (PMKSY): PMKSY aims to improve irrigation coverage and water use efficiency through end-to-end solutions for source creation, distribution, management, field application, and extension activities.
- Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): PM-AASHA ensures remunerative prices to farmers for their produce, addressing the issue of price instability.
- Kisan Credit Card (KCC): The KCC facility has been extended to farmers engaged in animal husbandry and fisheries-related activities.
- Per Drop More Crop Initiative: This initiative promotes drip and sprinkler irrigation techniques to optimize water utilization, reduce input costs, and increase productivity.
Why In News
Niti Aayog, the Indian government’s policy think tank, has recently advocated for comprehensive reforms aimed at increasing the participation of the private sector in India’s agriculture sector. These reforms aim to foster innovation, boost productivity, and create new opportunities for farmers by leveraging the expertise and resources of private enterprises. As a result, the agricultural landscape in India is expected to witness significant transformation and enhanced sustainability, ensuring a brighter future for the nation’s farmers.
MCQs about Promoting Private Sector Reforms in India’s Agriculture Sector
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Which organization recently proposed reforms for increased private sector involvement in India’s agriculture sector?
A. World Bank
B. Niti Aayog
C. United Nations
D. Reserve Bank of India
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What is the primary source of livelihood for approximately 55% of India’s population?
A. Manufacturing sector
B. Service sector
C. Agriculture sector
D. Education sector
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Which initiative aims to create a unified national market for agricultural commodities in India?
A. National e-Governance Plan in Agriculture (NeGPA)
B. Pradhan Mantri Fasal Bima Yojana (PMFBY)
C. National Agriculture Market (eNAM)
D. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
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