Hindu Editorial Analysis : 24-July-2024

The Economic Survey has recommended a digital system called “Agri Stack” to improve the targeting of fertilizer subsidies for farmers. This system aims to streamline how these subsidies are delivered by using a digital payment mechanism known as E-RUPI. Let’s explore what Agri Stack is and its potential impacts on the agricultural sector.

What is Agri Stack?

Agri Stack is a digital ecosystem that connects various stakeholders in agriculture. This includes:

  • Farmers
  • Government agencies
  • Agritech companies
  • Financial institutions

The goal of Agri Stack is to create a robust digital infrastructure. This will help in:

  • Making better decisions
  • Increasing productivity
  • Improving the overall livelihoods of farmers

The Ministry of Agriculture and Farmer Welfare is implementing Agri Stack in collaboration with state governments.

Impacts of Agri Stack

Targeted Delivery

One major advantage of Agri Stack is targeted delivery of subsidies. By linking subsidies to unique identifiers like Aadhaar, the system ensures that:

  • Subsidies reach the right beneficiaries
  • Reduces leakage of funds
Reduced Administrative Costs

Agri Stack automates the subsidy delivery process. This leads to:

  • Lower administrative costs
  • Reduced paperwork
  • Efficient allocation of resources
Real-Time Monitoring

With Agri Stack, government agencies can monitor the distribution of subsidies in real-time. This enhances:

  • Accountability
  • Transparency in the system
Data-Driven Policy Making

The data collected through Agri Stack allows policymakers to:

  • Analyze trends
  • Assess the impact of subsidies
  • Make informed decisions on agricultural policies
Encouraging Digital Financial Inclusion

Agri Stack promotes digital financial inclusion by encouraging farmers to link their bank accounts with Aadhaar numbers. This helps farmers access financial services easily.

Promoting Agricultural Productivity

Agri Stack supports farmers in:

  • Adopting modern agricultural practices
  • Purchasing quality seeds and fertilizers
  • Investing in technology to boost productivity

Current Status

Agri Stack was initially proposed as a pilot project in selected districts. It has since been developed in major Indian states, facilitating targeted subsidy distribution based on factors like:

  • Land ownership
  • Cropping patterns

The government is also working to partner with private companies to enhance the digital infrastructure.

Challenges Ahead

Despite its potential, Agri Stack faces several challenges:

  • Data Privacy Concerns: Protecting farmers’ information is crucial.
  • Digital Divide: Not all farmers have access to technology.
  • Infrastructure Needs: Robust infrastructure is necessary for effective implementation.
  • Information Gaps: Reliable information on market prices and weather is often lacking.

Addressing these challenges will be essential for the successful rollout of Agri Stack across the country.

Why In News

The Economic Survey has suggested the use of a digital system called ‘Agri Stack’ to improve the targeting of fertilizer subsidies. Additionally, it recommends the direct transfer of these subsidies to farmers through E-RUPI, a digital payment mechanism designed to streamline transactions and enhance efficiency. This integrated approach aims not only to ensure that support reaches the right beneficiaries but also to promote transparency and accountability in subsidy distribution.

MCQs about Agri Stack

  1. What is the primary purpose of the Agri Stack system?
    A. To increase the price of agricultural products
    B. To create a digital ecosystem for various agricultural stakeholders
    C. To eliminate the need for farmers to use technology
    D. To provide free fertilizers to all farmers
    Correct Answer: B. To create a digital ecosystem for various agricultural stakeholders
    Explanation: Agri Stack aims to connect farmers, government agencies, agritech companies, and financial institutions, creating a digital ecosystem to enhance decision-making and productivity.
  2. How does Agri Stack help in ensuring targeted delivery of fertilizer subsidies?
    A. By distributing fertilizers based on crop type
    B. By linking subsidies to unique identifiers like Aadhaar
    C. By giving subsidies to all farmers equally
    D. By randomly selecting beneficiaries
    Correct Answer: B. By linking subsidies to unique identifiers like Aadhaar
    Explanation: By connecting subsidies to unique identifiers, Agri Stack ensures that the support reaches the intended beneficiaries, thereby reducing leakage of funds.
  3. Which of the following is NOT a benefit of implementing Agri Stack?
    A. Enhanced transparency in subsidy distribution
    B. Increased reliance on manual processing
    C. Real-time monitoring of subsidy disbursement
    D. Data-driven policymaking
    Correct Answer: B. Increased reliance on manual processing
    Explanation: Agri Stack automates processes to reduce reliance on manual processing, thus improving efficiency and transparency.
  4. What challenges does Agri Stack face in its implementation?
    A. Excessive funding from the government
    B. Data privacy concerns and digital divide
    C. Universal access to technology
    D. Lack of interest from farmers
    Correct Answer: B. Data privacy concerns and digital divide
    Explanation: Agri Stack faces challenges such as protecting farmers’ data privacy and addressing the digital divide, as not all farmers have access to technology.

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