Agriculture is considered the backbone of the Indian economy. It is considered important due to the following:

• It contributes significantly to the GDP of India. In the year 2021, the contribution of agriculture and allied-sector to the GDP of India was 20.19%.
• Agriculture is the largest employment-providing sector in India.
• It provides a basis for industries in India.

India's agriculture is facing the following challenges:

1. stagnation in the production of major crops;
2. high cost of farm inputs;
3. soil exhaustion;
4. depletion of groundwater;
5. adverse impact of global climate change;
6. adverse impact of globalization;
7. farmers' suicides;
8. lower yield of major crops

The government has resorted to several measures under declared policies to meet the challenges of the agricultural sector. 

After independence, with the institution of welfare state, the policy orientation towards agriculture changed. Agricultural development was seen a prerequisite of development of the country. While planning to develop the agricultural sector, the Planning Commission has kept four broad objectives:

Increase agricultural production – Earlier, the aim was to bring more land under cultivation but later policy included raising the per hectare yield through intensive application of such agricultural inputs as irrigation, improved seeds, fertilizers, extension services , research and development etc. and thus bring about increased agricultural production.

Increase employment opportunities – Apart from increase in production, the agricultural sector should generate additional employment opportunities and provide scope for increasing the incomes of the poorer sections in our villages through effective backward and forward linkages.

Reduce the pressure of population on land – Another basic objective of planning in the agricultural sector is to reduce the number of people working on land, on the assumption that there are too many people working on land. The surplus labour on land should be shifted to secondary and tertiary sectors, preferably in rural and semi-urban areas.

Reduce inequality of income in the rural sector – The Government should remove the exploitation of tenants, and should distribute surplus land among small and marginal farmers in such a way that there would be some degree of equality and justice in rural areas.

All these objectives along with price stabilization, maintenance of food security and rural development are being followed in all our plans but in practice, agricultural planning has shown over stress on increase in production, viz., the achievement of the first objective.

The Agricultural Policy After Independence Contained Following Initiatives:

1. Improving the infrastructure through public sector investment. e.g. irrigation infrastructure, rural roads etc.
2. Effecting, institutional changes such as the abolition of intermediaries imposing of ceilings on land -holdings and distribution of surplus land among the landless. (Land Reforms)
3. Supply of credit through the cooperative and directed credit through nationalized banks
4. Ensuring remunerative prices for agricultural commodities (Administered Price Mechanism)
5. After the food aid crisis in late 1960s, the stepping up the use of fertilizers improved variety of seeds. (Green Revolution)
6. Establishing an effective agricultural produce marketing system under state control.

In the early years of planning the strategy for employment generation and poverty removal alleviation rested on a series of expectations in regard to institutional changes such as land reforms. Land reforms have been an important pillar in Indian planning experience aiming at agrarian as well as social transformation.

Objectives of Land Reforms

1. To remove such impediments to increase in agricultural productions arising from the agrarian structure inherited from the past.
2. To eliminate all forms of exploitation and social injustice within the agrarian system to provide security for the tiller of soil and assure equality of status and opportunity to all sections of the rural population.
3. To improve agricultural productivity.
4. To reduce socio-economic inequality.

Measures included under Land Reforms

1. All the intermediaries were abolished with the abolition of the agricultural revenue system.
2. Tenancy reforms included Regulation of Rent, Security of Tenure and granting owners ship Rights for Tenants

Reorganization of Agriculture

1. Land Consolidation took place under which fragmented plots were consolidated into one plot to improve the productivity.
2. Redistribution of land aiming at the improving the efficiency of irrigation by rearranging the plots in a systematic manner.
3. Co-operative farming – Through promotion of Cooperative farming, govt. motivated the farmers to pool their resources and employ modern technology.
4. Systematization of land records - Earlier the ownership rights of land were continuing on verbal basis. Through the systematization of land records, the peasants were given the ownership rights in a modern legal sense. Presently, computerization of land records is going on. For ex- Project Bhoomi.
5. Imposition of Land ceiling limits and acquiring of surplus land- the maximum amount of land which could be held was fixed and the surplus was acquired by the government to be redistributed among the landless.
6. Prevention of alienation of tribal land - the legislations were made so as to prevent the purchase of tribal land by the outsiders.
7. Granting of homstead rights – Rights were given the right to construct a house on the land given for cultivation.

Consequences

• The intermediaries were abolished within a few years after independence and the actual tillers accounting for about 40% of the cultivated area become the owners.
• Under the land ceiling Acts, total area declared surplus was 30-34 million hectares, and the area acquired by the govt. was 26.64 million hectares. Ultimately the total land distributed was 21.06 million hectares. In west Bengal, the implementation of land reform was most effective.
• Punjab was the first state to complete land consolidation. Around 33% of the total area has been consolidated & this consolidation was done particularly in Green Revolution areas.
• Self cultivation provided a major incentive for investment and the growth of agriculture in large parts of the country. However this reforms did not meet success in the hard-core feudal areas where the erstwhile big landowners continued to own large holdings and lease out land to the sharecroppers.
• Imposing ceiling landholdings and distributing the surplus land among the landless witnessed two rounds of land reform legislation - one in the fifties, and another on in early seventies. The state legislatures readily passed the radical legislation imposing a ceiling on landholding. However due to numerous exemptions provided by the law and to the lack of political will the objective of this reform was only partially fulfilled. The law discouraged concentration of land ownership beyond the ceiling level and this prevented the possible dispossession of numerous small and marginal holders which would probably have occurred through a competitive process in the land market in the absence of ceiling on landholdings.
• On account of loopholes and also due to the political interference of large landowners, not much surplus land could be acquired by the government for distribution among the landless.
• Land reforms have led to increase in agricultural labourers due to mass eviction of the tenants. This also initiated the process of migration which later on was further accelerated by the Green Revolution. This caused profound demographic changes in the place of origin and the place of source. Apart from above, the process has also caused urban congestion.

Agricultural research had made an improvement in traditional farming in every country of the world.  The first agriculture research centre was established by agriculture scientist J.V. Bosingault at Ellses in 1834.  It was a centre, which initiated agriculture research. American Society of Agronomy was established in 1908, which accelerated agricultural development in America.  Indian Society of Agronomy was established in 1950s.

During 1958, for the first time in India wheat production increased from 120 lakh tones to 170 lakh tonnes.  American scientist Dr. William Gaud termed it as Green Revolution.  During the middle of sixties, Indian Agricultural Scientists developed a number of new high yielding varieties of wheat by processing wheat seeds imported from Mexico.  These varieties were having production potentialities of 60-65 quintals per hectare.  A similar improvement in variety of rice was also observed.  As a result of introducing these high yielding varieties a true Green Revolution was observed in middle of sixties, which ensured India’s self-dependence in foodgrains.  The credit for it goes not only to Nobel Laureate Dr. Norman Borlaug but also to Dr. M.S. Swaminathan and C. Subramanian.

Green Revolution in India gave a rise to increase in productivity of different crops.  Indian Green Revolution is, thus, associated with the use of HYVS (high Yielding Variety Seeds), chemical fertilizers and new techniques, which led to a sharp rise in agriculture production during the middle of 1960s.

During 1950’s, a team of experts sponsored by Ford Foundation was set up to study the food problem in India. This team produced a report titled, ‘Indian Food Crisis and Steps to meet it”. Upon the recommendation of this team, during 1960-61 a programme named ‘Intensive Agriculture District Programme’ (IADP) was introduced in 7 districts of the country.  This programme was aimed to provide credit loans, seeds, fertilizers, equipments etc. to the farmers and to prepare an infrastructure for intensive farming in other areas of the country. 

During 1964-65, second similar programme named ‘Intensive Agriculture Area Programme’ (IAAP) was introduced in other parts of the country.  This programme was centred to a few particular specific crops.  Both the programmes –IADP and IAAP – were related to intensive farming but their operation was limited to traditional varieties of crops.

Due to severe drought in 1965-66 and in 1966-67, government adopted the new agriculture policy using HYVS (High yielding variety seeds) for accelerating agricultural production. Besides using HYVS, this new agriculture policy also included multiple crop programmes.

After 1966 there was a substantial increase in food grains production, especially wheat production, as a result of the new agricultural strategy. However, HYVP was restricted to only five crops-wheat, rice, jowar, bajra and maize. Non-food grains were excluded from the new strategy.

Acheivements of Green Revolution

The major achievement of the new strategy is to boost the production of major cereals, viz., wheat and rice. The increase in the rice production from 35 million tonnes in 1960-61 to 90 million tonnes in 1999-2000 and 111.76 million tonnes in 2021-22, signified a breakthrough in this major crop of India. The yield per hectare has also recorded an improvement from a little more than 10.9 quintals in 1960-61 to nearly 23 quintal now.

The production of wheat which stood at 11 million tones in 1960-61 rose to 76 million tones in 1999-2000 and to 106.84 million tones in 2021-22. Part of this increase in wheat production can be attributed to an extension of the area, but the yield per hectare rose from 8.5 quintals to 29 quintals per hectare, signifying 3.5 times rise in the last 40 years.

This means that, even though rice continues to be the most important cereals in the country, wheat is catching up fast.

The successful adoption of the new agricultural technology has led to continuous expansion in area under crops, increase in total production and rise in agricultural productivity. Impressive results have been achieved in wheat, rice, maize, potatoes, etc. The adoption of new technology has also given a boost to agricultural employment because of diverse job opportunities created by multiple cropping and shift towards hired workers. At the same time, there has been displacement of agricultural labour by the extensive use of agricultural machinery.

The new technology and modernization of agriculture have strengthened the linkages between agriculture and industry. Even under traditional agriculture, the forward linkage of agriculture with industry was always strong, since agriculture supplied many of the inputs of the industry; but backward linkage of agriculture to industry – the former using the finished products of the latter was weak. Now, however, agricultural modernization has created a large demand for inputs produced and supplied by industries to agriculture and thus the backward linkage has also become quite strong. In this way the linkage between agriculture and industry has got strengthened.

Problems in Green Revolution Strategy

Green revolution is criticized, firstly because it has been limited in its coverage of crops, land as well as regions. In case of crops, the charge is that it has been largely confined to wheat and rice to some extent. Two major fallouts from such practice (which is also common after paddy cultivation) are (a) rise in mosquitoes leading to high incidence of malaria and (b) rise in respiratory diseases particularly among the old and children. Practically for two months in a year such atmospheric pollution disturbs the rural areas in the form of low-level smog.

But other crops remained practically outside the ambit of the new technology, at least in the first few years. Commercial crops were not covered by the new technology. Most of the HYV seeds have been developed for and used during rabi season leading to seasonal instability in production.

In India, a major part of cultivable land is without proper irrigation facilities and in dry lands this technique has failed to make any breakthrough. The green revolution has been practically limited to Punjab, Haryana and western Uttar Pradesh.

The result is that farmers who cultivated these lands recklessly with their latest machinery and used heavy doses of fertilizers and insecticides to maximize their revenue in minimum time without weighing the adverse consequences, are now in a state of shock. To finance their grow-rich projects they borrow heavily from the State agencies as well as private parties, particularly the Arhtias. When these loans run into lakhs of rupees they are unable to pay the interest leave alone the capital. The lenders constantly harass them with all possible threats. Little surprise that the farmers are forced to take the extreme step of ending their lives. There are indications that disproportionate use of fertilizers has led to substantial erosion of natural productivity of the soils.

The high consumption of water by paddy has led to reckless tapping of ground water with the help of tubewells, thus disturbing the water table. Careless use of irrigation facilities has left several areas waterlogged and in this process vast stretches of agricultural land are now permanently submerged, the drainage cost being stupendous. This problem is reaching alarming proportion in states like Punjab.

Excess irrigation has also led to rise of salinity in several areas of Punjab and Haryana.

At the level of policy that the success of green revolution has led to ignorance of dryland areas. But with stagnating output and increasing costs , some people are of the opinion that the green revolution has outlived its utility.

Second Green Revolution

• While the First Green Revolution was to ensure food security, the Second Green Revolution aims at creating sustainable livelihood security for the poor and eradication of poverty by generating gainful self-employment.
• The First Green Revolution was aimed at undertaking mass production, the Second Green Revolution aims to promote producton by masses. This is in line with the Gandhian philosophy of involving the poor in development of equitable distribution of our prosperity.
• The Second Green Revolution focuses on generation of employment for the small and marginal farmers and the landless, while enhancing agricultural production.
• In the wake of climate change which is tightening its grip, the Second Green Revolution requires and entirely new approach. A new approach termed as 'precision agroculture' is the key.

Emphasis areas

1. non-food grains
2. improving rural infrastructure 
3. improving irrigation, rural roads, and rural electrification
4. increasing agricultural productivity
5. generating rural employment
6. improving global market opportunities
7. developing technology to conserve water and energy

Objectives

1. To raise agricultural productivity to promote food security;
2. More emphasis on biotechnology;
3. To promote sustainable agriculture;
4. To become self-sufficient in staple food, pulses, oil seeds, and industrial raw material
5. To increase per-capita income of farmers;

White revolution is associated with a sharp increase in milk production.  During 1964-65, Intensive Cattle Development Programme (ICDP) was introduced in the country in which a package of improved animal husbandry was given to cattle owners for promoting white revolution in the country.  Later on, to accelerate the pace of white revolution, a new programme named ‘Operation Flood’ was introduced in the country.  The Operation Flood Programme, which is the world’s largest integrated dairy development programme, has made considerable progress in achieving its outlined objectives.  During 2021-22, 210 million tonnes of milk was produce in the country.  Buffaloes, Cows and Goats contribute 50%, 46% and 4% respectively in total milk production of the country.  India stands first in the world in milk production accounting for about 17% of global milk production . USA stands second in the world.

The National Action Plan for Dairy Development envisages to achieve milk production target of 254.5 MMT by 2022 and 300 MMT by 2023-24.

National Dairy Development Board (NDDB) and Operation Flood

Dr. Varghese Kurien is the pioneer of operation flood in India.  All credit for its implementation and successful operation goes to him only.  Operation flood programme was started in 1970 by National Diary Development Board (NDDB).  The programmehas made a sound impact on rural masses and has encouraged them to take up dairying as a subsidiary occupation defying the traditional notion attached to the milk. It has offered a reliable and regular source of income as more than 62% of milk procurement in the Operation Flood areas comes from the marginal, small and landless farmers.  The recommended nutritional requirement of milk, as per recommendation of ICMR is 220 gm per day. Indian level of per capita consumption is very low as compared with that of developed nations.  This level is about 900 gm in USA. 

A disparity regarding per capita milk consumption among various States is also found in India. It is 800 gm in Punjab; 640 gm in Haryana while it is only 20 gm on an average in northeast State of the country.

Green revolution established many landmarks in the production of foodgrains. The next step in the series of agriculture research and development came in operation with the name ‘Yellow Revolution’.  This yellow revolution is associated with the objective of achieving self-dependence in the production of oilseeds. ISOPOM has been launched as a part of Yellow revolution. It is a centrally sponsored scheme under which government provides financial assistance for purchase of inputs and implements. Oilseeds technological mission was introduced for ensuring optimum utilization of production, processing and management technology in oilseed crops.  At present 337 districts of 23 States are associated with oilseed production programme.  Yellow revolution in India ensured remarkable achievements in production of oil seeds and edible oils.

New Agriculture Policy 2000

• In India, the first-ever agricultural policy was announced in 2000.
• The main purpose of the policy was to

1. realize the vast untapped growth potential of Indian agriculture;
2. strengthen rural infrastructure to support faster agricultural development;
3. promote value addition;
4. accelerate the growth of agro-business;
5. create employment in rural areas;
6. secure a fair standard of living for the farmers and agricultural workers and their families;
7. discourage migration to urban areas;
8. face the challenges arising out of economic liberalization and globalization

Features of the policy

1. The objective of 4% annual growth rate over the next two decades;
2. Greater private sector participation through contract farming;
3. Price protection to farmers;
4. Launch of National Agricultural Insurance Scheme (NAIS);
5. Dismantling of restrictions on the movement of agricultural commodities throughout the country;
6. Rational utilization of the country's water resources for optimum use of irrigation potential;
7. High priority to the development of animal husbandry, poultry, dairy, and aquaculture;
8. Capital inflow and assured markets for crop production;
9. Exemption from payment of capital gains tax on compulsory acquisition of agricultural land;
10. Minimise fluctuations in commodity prices;
11. Continuous monitoring of international prices;
12. Plant varieties to be protected through legislation;
13. Adequate and timely supply of quality inputs to farmers;
14. High priority to rural electrification;
15. Setting up of agro-processing units and creation of off-farm employment in rural areas

National Policy for Farmers, 2007

• The policy was announced on the basis of recommendations of the National Commission on Farmers under the chairmanship of Prof. M.S. Swaminathan.
• It aims to improve the economic viability of farming and increase net income of farmers.
• The 2007 policy is much more comprehensive.
• The major goals of the National Policy for Farmers are:

1. To improve the economic viability  of farming by substantially increasing the net income of farmers and to ensure that agricultural progress is measured by advances made in this income;
2. To protect and improve land, water, biodiversity, and genetic resources essential for a sustained increase in productivity, profitability, and stability of major farming systems by creating an economic stake in conservation;
3. To develop support services including the provision of seeds, irrigation, power, machinery, and implements, fertilizers, and credit at affordable prices in adequate quantity for farmers;
4. To strengthen the bio-security of crops, farm animals, fish, and forest trees for safeguarding the livelihood and income security of farmer families and the health and trade security of the nation;
5. To provide an appropriate price and trade policy mechanisms to enhance farmers' income;
6. To provide for suitable risk management measures for adequate and timely compensation to farmers;
7. To complete the unfinished agenda in land reforms and to initiate comprehensive asset and aquarian reforms;
8. To maintain the human and gender dimension in all farm policies and programmes;
9. To pay explicit attention to  sustainable rural livelihoods;
10. To foster community-centered food, water, and energy security systems in rural India and to ensure nutrition security at the level of every child, woman, and man;
11. To introduce measures which can help attract and retain youths in farming and processing of farm products for higher value addition by making it intellectually stimulating and economically rewarding;
12. To make India a global outsourcing hub in the production and supply of the inputs needed for sustainable agriculture, products, and processes developed through Biotechnology and Information and Communication Technology;
13. To restructure the agricultural curriculum and pedagogic methodologies for enabling every farm and home science graduate to become an entrepreneur and to make agricultural education gender sensitive;
14. To develop and introduce a social security system for farmers;
15. To provide appropriate opportunities in adequate measure for non-farm employment for farm households.

Vision-2050-ICAR

In August 2015, the ICAR prepared a Vision-2050 to meet the future challenges related to agriculture. 

Vision

Lead India to attaining sustainable food, nutritional, environmental, and livelihoods security through agricultural research and education.

Mission

Harness the power of science and innovation for food security, food safety, farmer prosperity, and enhance natural resources base to promote inclusive growth and sustainable development.

Focus areas

• Genetic potential enhancement of agricultural commodities;
• Agricultural productivity, efficiency, and profitability improvement;
• Resilience to climate change and abiotic and biotic stress;
• Improve nutritional food and health security;
• Risk management against climate change and market stressors;
• Agricultural value chains;
• Sustainability of natural resources base of agriculture;
• Valuation of ecosystem services;
• Agricultural markets, policies, and institutions;
• Biosecurity, especially emerging from gene piracy and cross-border vector-borne diseases;
• New products and uses (e.g. bioenergy, new crops, synthetic foods, special foods)

The steps taken by the ICAR for providing new technologies to farmers across the country include

1. setting up of 642 Krishi Vigyan Kendras (KVKs) and 652 Agricultural Technology Management Agencies (ATMAs) at district level;
2. providing information to farmers through Focused Publicity Campaign, Kisan Call Centres; Agri-Clinics and Agri-Business  Centres of entrepreneurs, Agri Fairs and Exhibitions, Kisan SMS Portal, DD Kisan TV Channel, and Community Radio Stations.

Rashtriya Krishi Vikas Yojana (RKVY)

• The Government of India scheme launched in 2007-08;
• It was brought to incentivize states to draw up plans for their agriculture sector more comprehensively, taking into account agro-climatic conditions, natural resources and technology into account and integrating livestock, poultry, and fisheries fully;
• RKVY aimed at achieving 4% annual growth in the agriculture sector during the 11th Plan period, by ensuring a holistic development of agriculture and allied sectors.

Objectives

1. To incentivize the states that increase their investment in agriculture and allied sectors;
2. To provide flexibility and autonomy to the states in planning and executing programmes for agriculture;
3. To ensure the preparation of Agriculture Plans for the districts and states;
4. To achieve the goal of reducing the yield gaps in important crops;
5. To maximize returns to farmers;
6. To address the agriculture and allied sectors in an integrated manner

Agricultural Marketing

Meaning

The National Commission on Agriculture defined agricultural marketing as a process which starts with a decision to produce a saleable farm commodity, and it involves all aspects of market structure of system, both functional and institutional, based on technical and economic considerations and includes pre- and post-harvest operations, assembling, grading, storage, transportation, and distribution.

Why agro-marketing reforms?

There are several challenges in marketing of agricultural produce:

1. limited access to market information;
2. low literacy level among farmers;
3. agricultural prices are not remunerative to the farmers because of multiple channels of distribution;
4. the government funding to farmers is still at nascent stage and most of the small farmers still depend on local moneylender who are exploitative in nature;
5. agricultural marketing is not adequately developed;
6. wastage of agriculture produce due to lack of warehousing and cold storage facilities;

The National Commission on Agriculture (1976) and National Commission on Farmers (2004) have recommended that the facility of regulated market should be available to the farmers within a radius of 5 km. The Ministry of Agriculture has identified following seven areas of market reforms to pursue with the states/UTs:

1. Direct wholesale purchase from farmers outside the market yards at farmgate by processors/exporters/bulk retailers/end users, etc.;
2. Establishment of private market yeards/private markets managed by a person other than a Market Committee;
3. Establishemnt of farmer/consumer market by a person other than Market Committee;
4. Provision for contract farming;
5. Provision for unified single registration/license for trade transaction in the mandis across the state;
6. Provision for e-trading;
7. Provision for single-point levy of market fee at first transaction

APMC

• Agricultural Produce Market Committee (APMC) is a statutory market committee constituted by a state government in respect of trade in certain notified agricultural or horticultural or livestock products, under the APMC Act enacted by the respective state government.
• APMCs are responsible for

1. ensuring transparency in pricing system and transactions taking place in market area;
2. providing market-led extension services to farmers;
3. ensuring payment for agricultural produce sold by farmers on the same day;
4. promoting agricultural processing including activities for value addition in agricultural produce;
5. publicizing data on arrivals and rates of agricultural produce brought into the market area for sale ;
6. set up and promote public-private partnerships in the management of agricultural markets

• Most of the state governments and UTs have enacted legislations to provide for development of agriucltural produce markets and to achieve an efficient system of buying and selling of agricultural commodities.
• The purpose of the APMC Acts is basically the same, i.e., regulation of trading practices, increased market efficiency through reduction in market charges, elimination of superfluous intermediaries and protecting the interest of producer-seller.
• The whole geographical area in the state is divided, and each one is declared as a market area which is managed by the APMC constituted by the state government.
• States also constitute a Market Board that supervises these market committees. Market Board generally consists of chairmen of all APMCs, representatives from the relevant government departments etc.
• APMCs generally consist of representatives of farmers, traders, warehousing entities, registrar of cooperative societies, etc.
• The APMC system was introduced to prevent distress sale by farmers to their creditors, to protect farmers from the exploitation of intermediaries and traders and to ensure better prices and timely payment for their produce through the auctions in the APMC area.
• However, APMC Acts restrict the farmer from entering into direct contract with any processor/manufacturer/bulk processor, as the producer is required to be routed through these regulated markets. 
• Over a priod of time, these markets have acquired the status of restrictive and monopolistic markets, harming the farmers rather than helping them to realize remunerative prices.
• The APMC Act treats APMC as an arm of the state and the market fee as the tax levied by the state, rather than as a fee charged for providing services, which acts as a major impediment in creating a national common market.

Model APMC Act 2003

• The Ministry of Agriculture formulated a model law on agricultural marketing - State Agricultural Produce Marketing (Development and Regulation) Act 2003 and suggested the state governments to suitably amend their respective APMC Acts for deregulation of the marketing system in India, to promote investment in marketing infrastructure, thereby motivating the corporate sector to undertake direct marketing and to facilitate a national market.
• The Model APMC Act 2003, provided for the freedom of farmers to sell their produce. The farmers could sell their produce directly to the contract-sponsors or in the market set up by private individuals, consumers, or producers.
• The Model Act also increases the competitiveness of the market of agricultural produce by allowing common registration of market intermediaries.
• Though the Model Act provides for the setting up of markets by the private sector, this is not adequate to create competition even within the state since the owner will have to collect fees/taxes on behalf of the APMC in addition to their own charges.

The National Agricultural Market (NAM)

• NAM through Agri-Tech Infrastructure Fund (ATIF) also known as e-NAM scheme was launched in April 2016 as a portal in order to create a unified national market for agricultural commodities by integrating the APMCs across India in the state wdesiresesire to be part of this initiative.
• NAM provides single window service for all APMC-related services and information, such as commodity arrivals and prices, provision for responding to the trade offers, buy and sell trade offers, among other services.
• NAM creates a unified market through online trading platform, both at state and national level, and promotes uniformity, streamlining of procedures across the integrated markets, removes information asymmetry between buyers and sellers and promotes real-time price discovery, based on the actual demand and supply, promotes transparency in auction process and access to a nationwide market for the farmers, with prices commensurate with quality of his produce and online payment and availability of better quality produce and at more reasonable prices to the consumer.

Objectives of NAM

• A national e-market platform for transparent sale transactions and price discovery initially in regulated markets.
• Liberal licensing of traders/buyers and commission agents by state authorities without any pre-condition of physical presence or possession of shop/premises in the market yard.
• One license for a trader valid across all markets in the state.
• Harmonization of quality standards of agricultural produce and provision for quality testing infrastructure in every market to enable informed bidding by buyers. Common tradable parameters have so far been developed for 69 commodities.
• Single point levy of market fees, i.e., on the first wholesale purchase from the farmers.
• Provision of Soil Testing Laboratories in or near the selected mandi to facilitate visiting farmers to access this facility in the mandi itself.

MSPrelatively

• The Minimum Support Price (MSP) is a form of market intervention to fix price of agricultural produce by the Government of India to insure farmers against any sharp fall in farm prices.
• The MSP is a guarantee price given by the government for their produce.
• The MSP is announced at the beginning of the sowing season for certain crops on the basis of the recommendation of the Commission for Agricultural Costs and Prices (CACP).
• The MSP is aimed at

1. assuring remunerative and relatively stable price environment for the farmers by inducing them to increase production and thereby augment the availability of food grains;
2. improving economic access of food to people;
3. evolving a production pattern which is in line with overall needs of the economy

• MSPs are currently announced for 24 commodities including seven cereals (paddy, wheat, barley, jowar, bajra, maize, and ragi); five pulses (gram, arhar/tur, moong, urad, and lentil); eight oilseeds (groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed, and nigerseed); copra, raw cotton, raw jute, and virginia flu-cured (VFC) tobacco.

Procurement Price

• It is higher than the MSP.
• Sometimes, the government procures at procurement price.
• The procurement price is announced soon after the harvest.
• Normally, the procurement price is higher than the MSP, but lower than the market price.
• The price at which the procured and buffer stock foodgrain are provided through the PDS is called an issue price. 

A comprehensive crop insurance scheme was introduced by govt. of India in 1985. The objectives of crop insurance include:

1. To provide financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests, and diseases;
2. To restore the creditworthiness of arising out of crop losses leading to non-repayment of crop loans;
3. To encourage the farmers to adopt progressive farming practices, high-value inputs, and higher technology in agriculture;
4. To help stabilize farm incomes, particularly in disaster years

Main Crop Insurance Schemes

NAIS

• National Agricultural Insurance Scheme was a Government of India scheme;
• Launched in the year 1999-2000;
• Its objectives include:

1. To provide insurance coverage and financial support to farmers in the event of failure of any of the notified crop as a result of natural calamities, pest, and diseases;
2. To encourage the farmers to adopt progressive farming practices, high value inputs and higher technology in agriculture;
3. To help stabilize farm incomes, particularly in disaster years.

• Features of the scheme:

1. Scheme is availble to all farmers - loanee and non-loanee irrespective of the size of their holdings;
2. Compulsory for loanee farmers and voluntary for non-loanee farmers;
3. Coverage of all food crops (cereals, millets, and pulses), oilseeds, and annual commercial/horticultural crops in respect of which past yield data was available for adequate number of years;
4. Premium rate: 3.5% for bajra and oilseeds, 2.5% Kharif crops, 1.5% for wheat, and 2% for other Rabi crops. In case of annual commercial/horticulture crops, actuarial rates are charged;
5. Small and marginal farmers were provided a subsidy of 50% of premium

MNAIS

• Modified National Agricultural Insurance Scheme is a Central Sector Scheme.
• The scheme was launched in 2011-12.
• Under MNAIS, the Centre and State Governments shared only the upfront premium subsidy on 50:50 basis and the claim liability was on the insurance company.
• The unit area of insurance was reduced to village/village panchayat level for major crops.
• The scheme was compulsory for loanee farmers and voluntary for non-loanee farmers.

WBCIS

• Wheather Based Crop Insurance Scheme was launched in 2017.
• The scheme aimed at mitigating the hardship of insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity, etc.
• Food crops (cereals, millets, and pulses), oilseeds, and commercial/horticulture crops were covered under it.

Coconut Palm Insurance Scheme

• The scheme was implemented on pilot basis form the year 2009-10.
• It was specifically for coconut-growing areas of Andhra Pradesh, Goa, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu, and West Bengal.

Farm Income Insurance Scheme (FIIS)

In order to target the two critical components of a farmer’s income, namely yield and price, through a single policy instrument, the Department of Agriculture & Cooperation formulated the Farm Income Insurance Scheme (FIIS). This Scheme was conceived to provide income protection to the farmers by integrating the mechanism of insuring production as well as market risks. Initially the scheme was taken up on a pilot basis in Rabi 2003-04 in 18 districts of 12 States for wheat and paddy. 

Features

• Farmers were protected by ensuring minimum guaranteed income.
• If the actual income of the farmers fell short of the guaranteed income (product of average yield and MSP) of the farmers they were eligible for compensation to the extent of indemnity from the Agriculture Insurance Company of India  Ltd. (AICI)
• Area approach as in NAIS was used for actual yield and price measurement of the insured corp.
• Initially the scheme covered paddy and wheat only.
• The Scheme was available for all the States and would be compulsory for farmers availing crop loans.
• NAIS was withdrawn for the crops covered under FIIS but would continue to be applicable for other crops.
• Additional provision of Rs.10,000 crore for Gross Budgetary Support (GBS) for plan; programmes such as Food for Work.

The scheme was discontinued in 2004.

Pradhan Mantri Fasal Bima Yojana

• The scheme provides insurance cover for all crops (including horticulture) for which past yield data is available.
• The uniform premium paid by farmers is - Kharif (2%), Rabi (1.5%), and commercial/ horticulture (5%).
• Rest of the costs are shared by Centre and State governments.
• The scheme encourages the use of technology such as the use of smartphones to capture and upload data. Also, the use of remote sensing to calculate yields, damages etc.
• The earlier schemes named NAIS, MNAIS, WBCIS, and Coconut Palm Insurance Scheme have been merged into it. 

How can PMFBY be seen as an improvement over previous schemes like MNAIS?

• The premium rate which ran as high as 15% in MNAIS was a major deterrent for its widespread adoption. Low premium rates in PMFBY will attract farmers.
• There is no upper limit on government subsidy. Earlier there used to be an upper cap on government subsidy to ensure limited outgo. This often led to low claims being paid to the farmers.

Drawbacks

It does not cover crop losses by wild animals which could have been instrumental in preventing man-animal conflict.

Agriculture Insurance Company (AIC) of India Limited 

• Its establishment was proposed by the Union Government in the budget of 2002-03. 
• Various insurance products offered by the AIC include

1. Pradhan Mantri Fasal Bima Yojana
2. Restructured WBCIS
3. Unified Package Insurance Scheme
4. Bio-Fuel Tree/Plant Insurance
5. Cardamon Plant and Yield Insurance
6. Potato Crop Insurance
7. Pulpwood Tree Insurance
8. Rainfall Insurance Scheme for Coffee
9. Rubber Plantation Insurance
10. Varsha Bima

Agricultural Credit

The bulk of short-term and long-tern agricultural credit is routed through the cooperative credit system. Apart from this, there are other provisions include

Kisan Credit Card Scheme

• Introduced in 1998-99;
• Aims at providing crop loans to farmers in a flexible and cost-effective manner;
• Implemented by all commercial banks, RRBs, state cooperative banks, central cooperative banks, and primary agricultural cooperative societies;
• Beneficiaries covered under the KCC are issued with a credit card and a passbook or a credit card-cum-passbook
• These cards provide timely credit to farmers in a flexible and cost-effective manner. It has now been extended to livestock and fisheries in 2018-19.

Objectives

The KCC Scheme aims at providing adequate and timely credit support from the banking system under a single window with a flexible and simplified procedure to the farmers for their cultivation and other needs as under:

1. short-term credit requirements for the cultivation of crops;
2. post-harvest expenses;
3. produce marketing loan;
4. consumption requirements of the farmer households;
5. working capital for maintenance of farm assets and activities allied to agriculture;
6. investment credit requirement for agriculture and allied activities

Benefits of KCC

• Flexible repayment options;
• Hassle-free distribution procedure;
• Single credit facility/term loan for all agricultural requirements;
• Dependable and easily available credit which enables a decrease in the farmers' interest burden;
• Assists in the purchase of fertilizers, seeds, etc.
• Assists in availing cash discounts from merchants/dealers;
• Credit is available for a period of up to 3 years, without any seasonal appraisals;
• Income from agricultural sources determines the maximum credit limit;
• There is no restriction on the cash withdrawals that can be made by the Kisan Credit Card holders, as long as it is within the credit limit set by the bank;
• Repayment can be made once the harvest season is over;
• Lower interest rate;
• Margin, security, and documentation terms and conditions are similar to that applicable to agricultural advance;
• Credit is made available for annual agricultural requirements and expenses;
• Minimal documentation and maximum flexibility offered for withdrawal of the required funds from the bank;
• Funds can be withdrawn from any of the bank's branches, as per the sole discretion of the bank;
• All new KCC must be issued as smart card-cum-debit card

Regional Rural Banks (RRBs)

• RRBs in India were established as per the recommendations of the Narasimham Committee to cater to the rural credit needs of farming and other rural communities.
• The first RRB was set up in India on October 2, 1975, under the name 'Prathma Grameen Bank' which was sponsored by the Syndicate Bank.
• The RRBs are set up under the Regional Rural Bank Act of 1976.
• The main of RRBs is to provide credit and other banking facilities to the small and marginal farmers, agricultural labourers, and small artisans who form an evident part of the development of the rural economy.

Ownership of RRBs

Objectives

• To serve the rural areas by opening branches in villages;
• To provide financial support for the development of agriculture by extending loans to small farmers, agricultural labourers, and small entrepreneurs;
• To encourage saving among rural people, accepting deposits, and using the funds for productive purposes;
• To provide the rural people from exploitation by the moneylenders;
• To reduce the cost of credit in rural areas

Functions

• Accepting deposits
• Extending loans
• Disbursing wages
• Secondary functions including

1. providing agency services and general utility services to the customers;
2. assisting in foreign exchange, money wire transfer, bill payments, etc.
3. utility services like ATMs, issuance of debit cards, locker facility, UPI, etc.

The reform measures initiated to strengthen and restructure the Regional Rural Banks (RRBs) will continue.

Self-Help Groups

NABARD and SIDBI have launched schemes for the promotion of SHGs and NGOs as a channel for flow of funds to micro-enterprises. The programme of linking self-help group (SHGs) of the poor with the banking system was launched as a pilot project in 1992. A redeeming feature of the programme is that 90 percent of the groups linked with banks are exclusive women groups.

Priority Sector Lending

• Priority sector means those sectors that the Government of India and Reserve Bank of India consider as important for the development of the basic needs of the country and are to be given priority over other sectors. The banks are mandated to encourage the growth of such sectors with adequate and timely credit.
• Categories of priority sector

1. Agriculture
2. MSMEs
3. Export credit
4. Education
5. Housing 
6. Social infrastructure
7. Renewable energy, etc.

Agriculture-related Targets for Scheduled Commercial Banks

Domestic Schedule Commercial Banks and Foreign Banks with 20 and more branches	Foreign banks with less than 20 branches	RRBs	Small Finance Banks
18% of Adjusted Net Bank Credit (ANBC)A or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher. Of this 18%, 8% is prescribed for small and marginal farmers.	Not applicable	18% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.	18% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

Need for Reforms in Agriculture Credit

• According to NSSO  70th round data, as much as 40% of the finances of farmers still comes from informal sources, despite an increase in the flow of institutional credit to agriculture in recent years.
• Of all the credit disbursed by the banks in India only 10% is towards rural areas.
• Usurious moneylenders still account for a 26% share of total agricultural credit.

The reasons for the low penetration of formal credit in rural areas are several-

• Low penetration of formal banking institutions in rural areas ( this is being slowly rectified by RBI through its successive banking licencing policies)
• Poor credit-worthiness of the rural poor as they have little or no assets to pledge.
• Widespread illiteracy and ignorance among rural masses coupled with complicated banking procedures.
• Due to poor recovery rates of loans and high amount of defaults the banks are not enthusiastic about the rural lending.

The default is due to two reasons-

1. Poor repayment capacity due to crop loss. This is being dealt by schemes like KCC, NAIS, and PMFBY.
2. Wilful default due to politically motivated loan waivers.
3. To deal with this there are Interest Subvention Schemes.
4. Even in the formal credit disbursed by banks under Priority Sector Lending there are certain facts that reveal that even the formal credit institutions have failed to reach the targeted beneficiaries-

Studies conducted by the RBI and National Bank for Agriculture and Rural Development (NABARD) indicate that the crop loans are not reaching intended beneficiaries and there are no systems and procedures in place at several bank branches to monitor the end-use of funds. As a result the loans instead of being invested to increase productivity are often utilized for consumption. As per a study most of the PSL loans are given in the month of March instead of the months of June and November when they are most needed. This shows that there is need to even reform the PSL loan practices so that the real intended beneficiaries get to avail the benefits of formal credit.

To this effect, the NachiketMor committee recommends that there should be differential weightage for lending to hardship areas and less credit-worthy individuals to encourage loan disbursal to the poor farmers in backward regions like Arunachal Pradesh which is least served by formal banking institutions.

Seed Sector

Seed is a critical and basic input for enhancing agricultural production and productivity in different agro-climatic regions. Indian seed sector programs largely adhere to the limited generation system for seed multiplication. The system recognizes three generations, namely breeder, foundation and certified seeds and provides adequate safeguards for quality assurance in the seed multiplication chain to maintain the purity of variety as it flows from the breeders to the farmers. Indian seed programme includes the participation of Central and State govemments, Indian Council of Agricultural Research (ICAR), State Agricultural Universities (SAU) system, public sector, co-operative sector and private sector institutions.