r dnyanadeep's ias dnyanadeep economy test 3… · 14/08/2019 · effective market...

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Daily Answer Writing Programme (Model Answers)

Q.1. India has been following Food Grain Procurement Policy since green revolution, but it suffersfrom various defects, which hampers the growth of the agriculture sector. What are the majordefects in food grain procurement policy? What steps must be taken to overcome these defects?

(12.5 marks)

Ans :The Government policy of procurement of Food grains has broad objectives of ensuring MSP to the farmers,availability of food grains to the weaker sections at affordable prices, keeping the prices under check througheffective market intervention, and adding to the overall food security of the country. However due to its faultydesign and implementation, it suffered from multiple defects. There is immediate need to correct theses faultstaking the ground realities into consideration so that its objective can be achieved in true spirit. Problems with procurement policy:

Faulty calculations : Though FCI decides procurement targets annually on consultation with states,but they many a times do not reflect the ground realities of production.

For example, in 2016-17 Kharif season the paddy production in Ganzam (Orissa) was around ninelakh tons. But ironically, the government target was to procure three lakh tones.

Delay in opening of Procurement places : Shanta Kumar Committee has said the procurementcenters open with delay, are not distributed across the states, are far away and sometimes very few.This creates hurdles for selling the food grains.

Exclusion of sharecroppers : Sharecroppers are left out of the procurement process, only farmersare registered for the procurement process.

Poor storage infrastructure : Since many states and FCI suffer from poor storage infrastructure,they do not sincerely open-ended procurement policy, because it will be difficult for them to storefood grains, which can lead to wastage and they will have to bear the cost.

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Daily Answer Writing ProgrammeSubject : General Studies IIIModule Name : Agriculture EconomyTest No : 31

Vaibhav Ghalme Sir(ICAS)

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Collusion among state government agencies and private players : Private players in order toprocure at lower rates collude with government agencies. This force farmers to sell at lower rates.This generally happens where farmers lobbies are weak.

Delay in payments also creates problems for farmers. MSP for rice and wheat is significantly high compared to other crops like pulses and many

coarse cereals are not even covered. This promotes distortion in cropping pattern. Steps must be taken :

There is a need to ensure efficient procurement policy, which focuses on the overall food security andagriculture sector. Food procurement must be seen as a component of the overall agriculture systemwhich ties to ensure remunerative prices for farmers, ensure food security and price stability.It requires : Greater professionalism in procurement planning : While making estimates for procurement

proper analysis of the market situation, area under wheat and paddy, estimated production all shouldbe taken into consideration.

Infrastructural arrangements should be made at enough number of places with proper facilities forfood grains, farmers to avoid overcrowding, wastage.

Grievance redressal system for farmers so that they can approach some authority if they are facingsome difficulties in procurement and to ensure proper implementation of open ended procurementpolicy of food grains.

Diversification of agriculture : After green revolution, the production of wheat and food grainsincreased substantially and public procurement works for these crops only. It creates problem ofplenty. Therefore, there is a need to diversify food production to horticulture, pulses and coarsecereals to ensure competitive pricing for all and nutrition security. For this government must providesupport for other crops.

Improve Storage facilities : Augmentation of storage facilities and implementation of NegotiableWarehousing Receipts (NWR) mechanism so that farmers are not forced to sell at low prices.Both of these steps have been recommended by Shanta Kumar Committee.

Focus on eastern states which have low procurement rates and farmers are much more vulnerablethere.

Increase exports : 2016-17 economic survey suggests deregulating agriculture export market. Itwill allow exporters to buy from market and will ease the pressure on government and farmers will beable to get better prices.

Reforms in agriculture marketing which will help in turning agriculture into a business, rather thanonly a means of livelihood. It will help in proper forecasting of demand, will help making informeddecisions by farmers about which crop should be sowed and help in getting remunerative returns.

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Revitalize food processing sector : so that wastage of food is reduced and supply chain is streamlined.It will boost farmers income, minimize distress sale and can bring in contract farming which if properlyregulated can bring returns for framers.

All these steps will ensure that agriculture turns into profitable venture and becomes part of virtuous circle. Itwill also help agriculture to move away from the support of government (which can be reserved only forcertain emergency situations only).

Q.2. Sugarcane farming faces multiple challenges in India. Identify these challenges and suggest theway forward. (12.5 marks)

Ans : Sugarcane is a crop widely grown in India and other south asian countries.

It has the following features

It is a water intensive crop and is grown during kharif season.

Tamil Nadu, Maharashtra and UP are the major producers. It is a cash crop which is an input for many industries- sugar, jaggery and alcohol production

It has a gestation time upwards of a year.

Harvested sugarcane is a persihable product loosing weight with time. The government announces Fair and Remeneurative price (FRP) at which sugar mills procure from

farmers.

Due to the features sugarcane farming faces various issues in India as mentioned below

Availability of irrigation sugarcane being water intensive crop requires water. Farmer distress and suicides. Marathwada, Vidarbha, Tamil Nadu witnessed suicides due to irregular

rain pattern harming crop.

Delayed procurement leads to sugarcane loosing its sugar content.

Lack of storage facilities leads to distress sale at below market price. Untimely payment by mill owners leads to lack o liquidity for next cropping season.

Way forward Scientific agriculture to be promoted. Regions rich in ground water and insured against drought should

cultivate sugarcane.

Farmers must be made aware about the soil health, provided knowledge crops nature to ensure thatdecisions are not based on procurement price.

Storage facilities need to be provided to ensure that sugarcane doesn't loose weight. Timely compensation shuld be provided to the sugar mills so that they can transfer it over to the

farmers timely.

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Q.3. Critically analyse how to balance Hunger issues and GM crop concerns in India? (12.5 marks)

Ans : In recent times, Gene Editing Technology has evolved so much that it is being considered panacea for allcomplicated problems such as genetic disorder, food security, diseases, nutrition, etc. Pros and cons areenumerated below of GM technology if leveraged to solve huger problems.

Pros

May result in increasing the yield, thus boosting food production

Limits the usage of insecticides

Make more nutrition available in the crops

Reduced input cost more disposable income to spend on food

Making crops more resilient to various abiotic such as environment stress

Cons

Enough food is produced, issues are with accessibility and affordability

Cheap and effective approach to fight under-nutrition would be fortification

Cellular and molecular impacts are not fully understood

No scientific study has been done to measure long term impacts

Irreversible changes to environment, human wealth, wildlife and ecology

Countries lack strong regulatory framework to

Local varieties are more suitable but with GM they will be completely lost

Way forward

No technology is good or bad in itself - all depends on how it is put to use. Given the pros and cons ofGM technology, it is advised to scrutinize the necessity and usefulness of GM to fight hunger and ensuringsufficient regulatory framework in in place to regulate complete life-cycle on case to case basis.

Q.4. Can shift in cropping and consumptions patterns reduce India’s micronutrient deficiencies andreduce greenhouse gas emissions? Examine. (12.5 marks)

Ans : According to World Bank Reports, around 160 Million People are Poor and Can not Afford a Nutritionrich diet. Around 75% Indians Suffer from Vitamin Deficiency. These Stats portrays the urgent need toreform the existing Cropping and Consumption Patterns to create a Healthy India.

How does it reduce micronutrient Deficiencies ?

a) Shifting to wheat , millets and maize from Rice would curb the Deficiencies in Consumers withouteffecting their Food-Budget.

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b) Increasing intake of Green Leafy vegetables and Coconut would reduce chances of Vitamin deficienciesin People.

c) Focussing on cereals such as Bajra and Ragi may help in maintaining a Nitrient tich diet withouteffecting the Budget much.

d) Mixed Cropping Patterns would reduce the Agrarian Crisis of the country by increasing profits.

How does it effect Green House Emissions?

a) Meat contributes negatively on environment mainly in form of deforestation and Livestock methaneemissions and hence contributes to green house gases emissions.Transforming towards a more plantbased diet would reduce food related green house emissions by upto 70%.

b) The livestock sector is also responsible for 64% of anthropogenic ammonia emissions, which contributeto acid rain and acidification of ecosystems.

With Increasing Pollution Levels at Global Levels, the need of hour is reforms in the system to ensure GreenHouse gases are curbed to much extent to fulfill Determined goal under Paris Accord and SDG 2030 Goalof 'Climate Action' under Goal -13.

Q.5. What do you understand by Permanent Surpluses? How is it affecting Indian agriculture? SuggestMeasures. (12.5 marks)

Ans : INDIA being a food deficit country have transformed into food surplus country specially due to greenrevolution.reason for poor condition of farmers due to agri surplus.

1. Prevalence of APMC markets, trader cartels which deliberately offer low price for agri producespecially due to bumper crop production.

2. Shortage of infra like cold storages,food irradiation centres,food parks,poor road connectivity whichmakes it necessary for farmers to dump their products at low prices.

3. Legal hurdles like essential commodities act which prohibits any one from stocking agri produce,abruptstopage of exports,minimum export duties which hampers free flow of goods.

4. Lack of access to global agri markets, special previlage offered to least developed countries toexport their goods to india also makes farmers condition worse.

Reasons :1. Availability of better seeds. Wheat (HD-3086) is more resistant to yellow low rust fungus.2. Faster diffusion of technology. e.g. drip irrigation3. Government subsidies in terms of electricity and irrigation4. Infrastructure : improved roads and communication infrastructure5. Farmer awareness : Compared to 20 years ago, current farmers are more aware about prices,

latest hybrid/varieties, crop protection chemicals, machinery and agronomic practice

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Ways and means to address it.1. Compulsory admission of APMC into E-NAMS across states,abolition of intermediary.

2. Making private sector participate in food procurement and distribution,which will help in building infralike cold storages etc.

3. Bilateral-regional agri pacts for agri market access eg china agreeing to procure basmati rice fromIndia.

4. Reduction of red tape,investor friendly policies for setting up of food parks.

With schemes like TOP, price stabilistion fund are aimed at improving the life of farmers.Q.6. What do you understand by micro irrigation? Discuss its importance to a country like India?

(12.5 marks)

Ans : Micro irrigation

It is a frequent application of small quantities of water on or below the soil surface as drops, tinystreams or sprays through emitters. It encompasses a number of methods such as bubblers, drip or sprayirrigation.

Need of micro irrigation At present, about 35% of net cultivated area is irrigated by different sources. Mostly irrigation is flood

type which is highly inefficient.

India uses 2 to 4 times more water to produce a unit of major food crop than does China and Brazil.This leads to soil salinity, fluoride contamination, declining water table.

Importance of micro irrigation

Fertilizers can be delivered directly to root system via fertigation. This reduces fertilizer usage, cost &soil contamination problems.

Less water evaporation, less electricity consumption, and higher yields.

Water Conservation through increased beneficial use of available water

Since, we face severe drought years and almost 60% area is rainfed, in this situation, the microirrigation can be a climate resilient technique.

Challenges in Micro-irrigation

Small / marginal farmers feel discourage because of initial high cost of purchase and the skill requiredfor repair and maintenance.

Wild animals damage the equipment. Repair costs are not covered in crop insurance. Hence mostlybig farmers near urban areas adopt micro-irrigation system.

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Way forward Govt's initiative like Pradhan Mantri Krishi Sinchayee Yojana which have components like

Accelerated Irrigation Benefits Programme (AIBP), Har Khet Ko Pani, Per Drop More Crop will improve irrigation system. Rain water harvesting in drought prone areas. Inclusion of repair and damage cost of equipments in insurance schemes. It will encourage small

farmers to adopt micro irrigation techniques.In the present condition of climate change, declining ground water table, and lower productivity, microirrigation can solve these issues upto some extent and therefore, will give a way towards doublingfarmers income by 2022.

Q.7. Discuss the distribution of the types of irrigation systems prevalent in India. (12.5 marks)Ans : Depending upon the availability of surface or ground water, topography, soil and rivers, various types of

irrigation practised in India are asfollows: Tanks :

It is prevalent in the unevenand relatively rocky plateauof Peninsular India. Tanks arecommonly used in DeccanPlateau, Andhra Pradesh,Karnataka, Tamil Nadu andMaharashtra. About 8% oftotal irrigated area is irrigatedby tanks.

Most of the tanks are smallin size and built byindi¬viduals or group offarmers by raising bundsacross seasonal streams. Butthere are some drawbacks:Tanks cover a large areas ofcultivable land. Evapo¬rationof water is rapid due to largeexpanse of shal¬low water oftanks, do not ensure perennialsupply of water.

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Well :It is more widespread in plains, coasts and some regions of peninsular India. It is less costly and moreflexible as water can be drawn whenever needed and ‘evaporation loss’ is minimised and no fear of “overirrigation”. Uttar Pradesh leads in well irrigation and is followed by Punjab, Haryana, Bihar, Gujarat andAndhra Pradesh.

Wells are of two types :Open wells and tube-wells.Open wells are shallow and irrigate a small area because water available is limited. Tube wells are deepand have the capacity to draw a large volume of water. It has increased in recent years.

Canals :Canals are the main source of irrigation in India. Canals are big water channels taken out from rivers tocarry water to places far away from the river.It is of two types : Canals taken out from rivers without any regulating system like weirs etc. attheir head are called inundation canals and canals taking off from perennial rivers with a weirsystem to regulate flow of water are called perennial canals.Punjab and Haryana have become the first granaries of country due to these canals which include WesternYamuna Canal, Sirhind Canal, Upper Bari Doab canal & Bliakra Canal. The important canals of UttarPradesh are upper and lower Ganga Canal, Agra and Sharda Canal and Rajasthan has become thirdgranary due to Rajasthan canal project.

Q.8. Examine the historical evolution of irrigation in India, the nature of shifts that have occurred overthe years, and the major challenges it faces now. (12.5 marks)

Ans : Agriculture and irrigation are two words that cannot be separated in India; not just due to the heavy dependenceof the former on the latter today, but due to the historic presence and development of irrigation systems fromancient times as known from:1. Evidence of irrigation from wells in the Chola kingdom2. Presence of ancient wells and canals to divert streams from rivers and references in ancient texts3. Investment in canals and waterworks by Delhi sultanate, Mughal empire and Deccan sultanate4. After the coming of the British about 13 mn ha of land was brought under irrigation, particularly in Punjab,

Bengal, etc. Canals, dams, wells were built and old networks extended; significantly, the Bari doab regionand Ganga canal network. Storage reservoirs were funded by them and erstwhile princely states such asTravancore.1) Phase 1 (1950s to 1970s ) : in order to provide food security there was an increasing trend towards

large public irrigation schemes such as tanks in southern India, kuhls and similar farmer-managedirrigation systems in the Himalayas, and ahar-pyne systems in southern Bihar etc .they were seen askey to increase production surplus .

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2) Phase 2 (1970s to 1990s ) : order to fulfil the need of increased demand from increased populationgrowth and with the development of new technologies such pumping equipment there was decline inpublic irrigation and private investments were increased in this sector .therefore there was boom inground water utilization thus ground water depletion started .thus there are concerns such asGroundwater over-exploitation, water quality deterioration, and mounting electricity subsidies

3) Phase 3 (2000s to present ) : now there is increasing demand for surface water irrigation such river.Therefore we are witnessing rising number of cases of river water disputes (SYL between Punjab andHaryana ,Kaveri dispute between KN andTN) .we are also shifting towards renewable energy resourcesfor getting away from coal power plants based electricity consumption .

The major challenges irrigation faces now ?1) Water crisis and water pollution : Over exploitation of ground water resources and shifts towards

surface water ,One reason of this is lack of awareness among people about the value of water .2) Poor performance and low preference to public irrigation system3) Erosion of traditional water harvesting system such tanks ,Babris ,Nalas etc so a lots of rain water is

going vain .4) Disparities among states in terms of available water resources .

Therefore in order to fill the gap between increased population growth demand of water, food security andsupply through irrigation facilities, So there is need of a robust ,efficient and effective sustainable policyframework for water management especially for irrigation purpose.The key recommendation of the Mihir Shah Committee is to create an NWC that unifies the CWC andCGWB, which is a step in the right direction.

Q.9. What do you understand by solar irrigation? Examine the benefits of The Solar Power As ARemunerative Crop (SPARC) model compared to other solar irrigation models. (12.5 marks)

Ans :Solar Irrigation or Solar Powered Irrigation is the use of solar energy in pumping out water fromground.According to this method solar panel can placed on open top floor of house. The electricity generatingin photo voltaic cell can be channelized to pumping set.

BENEFITS Cutting farm power subsidy. Alternate to Grid Power. Green Energy Equitable water market. Reduce drudgery/hard work.

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NEGATIVES Pumps could add to the problem of groundwater depletion since solar energy use for pumping is

considered to be free. Solution lies in SPaRC

SPaRC Features and its benefits Offers farmers a guaranteed buy-back of the surplus solar power they produce, provided they are

connected to the electricity grid. This guarantee allows farmers to invest in solar powered pumps. Which reduce the use of carbon intensive diesel pumps on farms. Encouraging the sale of excess energy to the grid helps counteract this.

Although the problem is lie in attitude of farmer and their believe in selling such extra power, who would buyat what cost would also create problem .Providing a purchase guarantee on solar energy and making farmer generated solar energy an integral part ofthe National Solar Mission could help achieve this. Adopting the COOPERATIVE can also be an effectiveway to reduce transaction costs from many dispersed individual sellers.

Q.10.Discuss the role of Food Corporation of India in Procurement. What are the problems in itsfunctioning. Also Suggest measures to improve the same. (12.5 marks)

Ans : FCI role in Procurement

The Government policy of procurement of Food grains has broad objectives of ensuring MSP to thefarmers and availability of food grains to the weaker sections at affordable prices. It also ensureseffective market intervention thereby keeping the prices under check and also adding to the overallfood security of the country.

FCI, the nodal central agency of Government of India, along with other State Agencies undertakesprocurement of wheat and paddy under price support scheme. Coarse grains are procured by StateGovernment Agencies for Central Pool as per the direction issued by Government of India on time totime. The procurement under Price Support is taken up mainly to ensure remunerative prices to thefarmers for their produce which works as an incentive for achieving better production.

Before the harvest during each Rabi / Kharif Crop season, the Government of India announces theminimum support prices (MSP) for procurement on the basis of the recommendation of theCommission of Agricultural Costs and Prices (CACP) which along with other factors, takes intoconsideration the cost of various agricultural inputs and the reasonable margin for the farmers for theirproduce.

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To facilitate procurement of food grains, FCI and various State Agencies in consultation with the StateGovernment establish a large number of purchase centres at various mandis and key points.

The number of centres and their locations are decided by the State Governments, based on variousparameters, so as to maximize the MSP operations. For instance for Wheat procurement more than17,000 procurement centers were operated during RMS 2017-18 & for Rice procurement morethan 44,000 procurement centres were operated in KMS 2016-17.Such extensive & effective price support operations have resulted in sustaining the income of farmersover a period and in providing the required impetus for higher investment in agriculture sector forimproved productivity Whatever stocks which are brought to the Purchase centers falling within theGovernment of India's specifications are purchased at the fixed support price.If the farmers get prices better than the support price from other buyers such as traders / millers etc.,the farmers are free to sell their produce to them. FCI and the State Government/its agencies ensurethat the farmers are not compelled to sell their produce below support price.

Food Corporation of India is a government organization that implements effective price supportsystems,distribution of foodgrains,maintaining buffer stocks etc.

But there are some loopholes in its functioning-1. Inadequate storage facilities- lot of foodgrains get rotten due to less silo capacity2. Malpractices like diverting the quality procured food to the market3. Procurement issues,Transportation problems4. Lack of Food Processing facilities5. Leakage through Public Distribution System6. Irregular opening of PDS shops,Adulteration of food ,subsidies etc

Reforms that can be taken to address the issues-1. Increasing the number of silos and the storing capacity2. Make procurement more transparent through online process3. Rationalising subsidies4. Security of tenure and secure wages to employees of FCI, HRMS (Human Resource Management

System)can be introduced for their welfare5. Leakages have to be controlled,administration has to be made accountable6. Shanta Kumar Committee recommendations can be implemented which talks about reducing the no.

of beneficiaries ,allowing entry of private players, Direct Benefit transfer in subsidy.Farmers work hard in adverse conditions for our food security,we should make sure that not even a singlegrain produced by our farmer goes waste.

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