Lokesh Project
Lokesh Project
PART-1
Conclusion 51
References / Bibliography 56
Mini Project-II
INDUSTRY ANALYSIS
OF AGRICULTURE
PART-1
What Is an Industry?
An industry is a group of companies that are related based on their primary business activities. In
modern economies, there are dozens of industry classifications. Industry classification are
typically grouped into larger categories called sectors.
Individual companies are generally classified into an industry based on their largest sources of
revenue. For example, while an automobile manufacturer might have a financing division that
contributes 10% to the firm's overall revenues, the company would be classified in the automaker
industry by most classification systems.
Survey carried out by Rice Producers of California, discovered that rice growers could be at a
loss of around $200 million for producing rice ,despite the fact that transgenic rice is produced at
a cheaper rate as compared to conventional rice.
There are some facts about the Agriculture Industry which can be enumerated as below:
• It is expected that there will be stabilization of the services of the Agriculture Industry in the
next few years to come.
• Agriculture Industry has witnessed major conversion to dairy farming.
Agriculture Industry is influenced by prices of commodities, the farmers provide and are also
associated with products obtained as a result of farming.
Agriculture Industry comprises of the individuals producing dairy products, vegetables, wine,
tobacco, fruits, mushrooms, eggs, products obtained as as result of forestry operations.
Agriculture industry also includes the florists, greenhouses, aquaculture and nurseries.
Investments
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian
food processing industry has cumulatively attracted Foreign Direct Investment (FDI) equity
inflow of about US$ 10.20 billion between April 2000 and September 2020.
Some major investments and developments in agriculture are as follows:
• In March 2020, Fact, the oldest large-scale fertiliser manufacturer in the country, crossed one
million production and sales mark.
• Nestle India will invest Rs. 700 crore (US$ 100.16 million) in construction of its ninth
factory in Gujarat.
• In November 2019, Haldiram entered into an agreement for Amazon's global selling program
to E-tail its delicacies in the United States.
• In November 2019, Coca-Cola out of its trademark fizzy drinks.
• Two diagnostic kits developed by Indian Council of Agricultural Research (ICAR) - Indian
Veterinary Research Institute (IVRI) and the Japanese Encephalitis lgM ELISA were
launched in October 2019.
• Investment worth Rs. 8,500 crore (US$ 1.19 billion) have been announced in India for
ethanol production.
Government Initiatives
Some of the recent major Government initiatives in the sector are as follows:
• In November 2020, the government inaugurated a mega food park in Punjab worth Rs.
107.83 crore (US$ 14.6 million) that will be spread across over 55 acres of land.
• In October 2020, the Tribal Cooperative Marketing Development Federation of India
(TRIFED) included 100 new Forest Fresh Organic Products sourced from tribes across India
on its e-marketplace (tribesindia.com).
• In October 2020, Agri-lender Nabard (National Bank for Agriculture and Rural
Development) proposed plans to set up a subsidiary to provide guarantee for loans under
agriculture and rural development.
• In October 2020, the government announced that it is putting up a common data
infrastructure for farmers in the country. PMFBY (Pradhan Mantri Fasal Bima Yojana), PM-
Kisan and the Soil Health Card will be integrated through a common database, along with
land record details.
• In September 2020, the government launched the PM Matsya Sampada Yojana, e-Gopala
App and several initiatives in fisheries production, dairy, animal husbandry and agriculture.
Under this scheme, an investment of Rs. 20,000 crore (US$ 2.7 billion) will be made in the
next 4-5 years in 21 states.
• In May 2020, Government announced the launch of animal husbandry infrastructure
development fund of Rs. 15,000 crore (US$ 2.13 billion).
• In September 2019, Prime Minister, Mr. Narendra Modi launched National Animal Disease
Control Programme (NADCP), expected to eradicate foot and mouth disease (FMD) and
brucellosis in livestock. In May 2020, Rs. 13,343 crore (US$ 1.89 billion) was allocated to
the scheme.
• The Government of India came out with Transport and Marketing Assistance (TMA) scheme
to provide financial assistance for transport and marketing of agriculture products in order to
boost agriculture exports.
• The Agriculture Export Policy, 2018 was approved by the Government of India in December
and US$ 100 billion in the next few years with a stable trade policy regime.
• The Government of India is going to provide Rs. 2,000 crore (US$ 306.29 million) for
computerization of Primary Agricultural Credit Society (PACS) to ensure cooperatives are
benefitted through digital technology.
• The Government of India launched the PradhanMantriKrishiSinchaiYojana (PMKSY) with
an investment of Rs. 50,000 crore (US$ 7.7 billion) aimed at development of irrigation
sources for providing a permanent solution from drought.
• Government plans to triple the capacity of food processing sector in India from the current
10% of agriculture produce and has also committed Rs. 6,000 crore (US$ 936.38 billion) as
investments for mega food parks in the country, as a part of the Scheme for Agro-Marine
Processing and Development of Agro-Processing Clusters (SAMPADA).
• The Government of India has allowed 100% FDI in marketing of food products and in food
product E-commerce under the automatic route.
• In November 2020, the planting of winter crops exceeded by 10% compared with the last
year and witnessed 28% increase in area under pulses. The total area acreage under pulses
increased to 8.25 million hectares from 6.45 million hectares last year.
• Out of the total 37 mega food parks that were sanctioned, 21 mega food parks are
operational, as of November 2020.
• In November 2020, Minister of Consumer Affairs, Food and Public Distribution, Mr. Piyush
Goyal announced that the Food Cooperation of India and state agencies are set to procure a
record quantity of 742 LMT (lakh metric tonnes) paddy during the ongoing Kharif crop
season as against 627 LMT paddy last year.
• The Electronic National Agriculture Market (e-NAM) was launched in April 2016 to create a
unified national market for agricultural commodities by networking existing APMCs. It had
16.6 million farmers and 131,000 traders registered on its platform until May 2020. Over
1,000 mandis in India are already linked to e-NAM and 22,000 additional mandis are
expected to be linked by 2021-22.
• Sale of tractors in the country stood at 804,000 units in 2019 with export of 80,475 units.
• During FY20 (till February 2020), tea export stood at US$ 709.28 million.
• Coffee export stood at US$ 742.05 million in FY20.
Roads Ahead
India is expected to achieve the ambitious goal of doubling farm income by 2022. The
agriculture sector in India is expected to generate better momentum in the next few years due to
increased investment in agricultural infrastructure such as irrigation facilities, warehousing and
cold storage. Furthermore, the growing use of genetically modified crops will likely improve the
yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years
due to concerted effort of scientists to get early maturing varieties of pulses and the increase in
minimum support price.
In the next five years, the central government will aim US$ 9 billion in investments in the
fisheries sector under PM Matsya Sampada Yojana. The government is targeting to raise fish
production to 220 lakh tonnes by 2024-25.
Going forward, the adoption of food safety and quality assurance mechanisms such as Total
Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical
Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices
(GHP) by the food processing industry will offer several benefits. The agri export from India is
likely to reach the target of US$ 60 billion by the year 2022.
What is Agriculture Commodities?
Mainly agriculture commodities are routine food and animals produced by the farmers on farms.
In India, various agriculture commodities are grains, dairy, livestock, and others that are
consumed by users across the world. Various agricultural commodities were used for both a
source of food and an industrial sector.
Practically every person depends on agriculture somehow or another. We all want food for a
living, and that food is called agriculture commodities, i.e., fruits, grains, vegetables, and
livestock. And, agriculture commodities used to make clothes from wool and cotton. We used
vehicles that had tires made from rubber.
And, Indian grocery and food market placed 6th rank in the world. It contributes 70% of the sales.
Indian farmers produce agricultural products, those products used for consumption in India and for
export too.
Here we come up with a fresh topic about the list of agro commodities in India. From that, you
get all the accurate and detailed information regarding Top 10 Agriculture Commodities in India.
Page 7 of 56
(A) Top 10 Agriculture Products in India :
India is popularly known for its various agricultural commodities. All we know is that India is a
rich agricultural country. Here we are showing the list of top 10 agricultural commodities in
India. Check out the below.
1. Rice
In India consumption of rice is highest from other agriculture commodities. Rice mainly
produced in India, including white rice and brown rice grown in the eastern and southern parts.
India is the 2nd largest grower of rice over the world. Increasing demand in the market, rice
production is in trend in India.
2. Milk
India is the highest producer of milk throughout the world. In India, milk of buffalo, cow, cattle,
and many more animals produced at a considerable level. After the white revolution, India
became the largest producer of milk all over the world. Nowadays, the Indian farming sector is
developing day by day, and with that poultry industries are growing rapidly.
4. Mangoes
Mango in India is a king of fruits. The people of India love the summer season for mangoes, and
they are crazy about it. India is known for its exotic mangoes hotspot. It is a fruit that is rich with
unique flavor and sweetness. The most famous types of mangoes which you can find in India are
Alphonso, Hapus, Badami, Chausa, and Dasheri. Apart from this, In Indian markets, you get
various varieties of mangoes.
The Major Mango Production States in India
• Maharashtra
• Karnataka
• Himachal Pradesh
• Uttar Pradesh
5. Guavas
Guava is the fifth most primarily grown agriculture commodity, and further, it is called a poor
Je Jc
systolic blood pressure. It is the best source of proteins and a solution to constipation. Except for
high heels regions, it is produced almost throughout India.
The Major Guava Production States in India
• Uttar Pradesh
• Madhya Pradesh
• Bihar
• Andhra Pradesh
6. Sugarcane
Sugarcane is an agricultural commodity which has been employed by Indian farmers from the
ancient time. All of us very well know that sugarcane is an indigenous agriculture commodity
and belongs to the bamboo family. Sugarcane is the primary source of Gur, Sugar, and
g J e H in India.
From the left raw material of sugarcane, alcohol manufactured.
7. Cotton
India has the largest cotton cultivation area all over the world after China and the USA, and it is
the prime agriculture commodity or fiber crop worldwide. Cotton supplies the primary raw
material to the textile industries of the cotton. There are three broad types of cotton, i.e., Long
staple cotton, Short staple cotton, and Medium staple cotton.
8. Bananas
In India, banana is an important agricultural commodity that is available all over the year.
Banana is tasty, nutritious, affordable, and used for medicinal purposes. It is the most demanded
fruit in India and has excellent potential export. There are 15 to 20 varieties of banana in India,
and 300 plus types of bananas in all over the world.
9. Potatoes
In India, every vegetable is incomplete without a potato. Nowadays, potato is the necessary
agricultural commodity in India. It consumed daily. India is the 3rd highest potato producing
country. Initially, the Portuguese produced potatoes, they called Batata to them. Along with this,
the bangles are called potatoes, Alu.
10. Groundnuts
Groundnuts is a crucial oil speed agriculture commodity in India. It is the commodity available
throughout the year. Groundnuts are called peanuts, and in India, it is called Moongaphalee. It is
a protein-rich commodity and used for many types. Groundnuts are mainly grown in the rainy
season, and it comes with various flavor tastes, crunchy, sweet, and nutty. Groundnuts preferred
for a healthy diet.
India is an agriculture rich country where almost every type of farm commodities produced.
Some agricultural commodities trading in India and some exported from India. Here we are
i e Jh elow.
Page 12 of 56
Agricultural Exports From India
Here we are showing you a list of agricultural products exported from India. We come with some
agriculture commodities that produced and exported from India are;
• Rice (Basmati and Non-Basmati)
• Vegetables
• Fruits
• Groundnut
• Pulses
• Sheep/Goat Meat
• Wheat
• Dairy Products
• Alcoholic Beverages
(B) List of Multinational Companies :
Limited Company
Industry Agribusiness
Founded 1973
Products Seeds
Revenue Rs 1060 crores
Website Nuziveeduseeds.com
Nuziveedu Seeds Limited deals in agricultural seeds, as the name of the company suggests. The
largest producer of BT cotton seed in India, Nuziveedu Seeds Ltd. was founded in 1973. It has its
corporate and head office in Hyderabad, Telangana. The company offers seeds for a wide range
of crops: cotton, vegetable, mustard, sorghum, pearl millet, sunflower, maize and paddy seeds.
NSL group, an Indian conglomerate, is the parent company of the Nuziveedu Seeds Limited.
Lemken India Agro Equipment Private Limited is a Private incorporated on 17 December 2008.
It is classified as Non-govt company and is registered at Registrar of Companies, Mumbai. Its
authorized share capital is Rs. 1,020,000,000 and its paid up capital is Rs. 996,277,500. It is
inolved in Architectural, engineering and other technical activities
Lemken India Agro Equipment Private Limited's Annual General Meeting (AGM) was last held
on 30 September 2019 and as per records from Ministry of Corporate Affairs (MCA), its balance
sheet was last filed on 31 March 2019.
Directors of Lemken India Agro Equipment Private Limited are Rudolf Johann Vervoorst, Eppo
Anthony Van Der Ley, Sanjay Kapoor, .
Lemken India Agro Equipment Private Limited's Corporate Identification Number is (CIN)
U74210MH2008PTC188977 and its registration number is 188977. Its Email address
is [email protected] and its registered address is Plot No. D-59, MIDC, Butibori, Taluk
Hingna, District Nagpur Nagpur MH 441108 IN . Current status of Lemken India Agro
Equipment Private Limited is - Active.
Lemken India was operationalised in 2010 and its headquarters in Nagpur, Maharashtra. It is a
recognised manufacturer of machinery needed for soil cultivation, sowing and plant protection, It
has its manufacturing plant in Nagpur, Maharashtra. Lemken has spread its business in 45
countries around the world. Lemken India is one of the leaders in producing plough, cultivator,
and Power Harrow and other agricultural implements.
4. Advanta Limited :
Founded: 1994
Subsidiaries: Advanta US, Inc., Pacific Seeds (Thai) Ltd, Advanta Argentina,
Advanta Ltd is an associate company of United Phosphorus Ltd (UPL), a large Indian
agrochemical company with a group turnover of Rs 3,500 crores (US$ 573.27 million). Advanta
Ltd is the holding company for the global business of Advanta. It is also the first Indian
multinational seed company with a global footprint, which enjoys a strong presence in the
domestic and International market.
The company has been steadily investing in research, development and technology. Today,
Advanta Ltd enjoys a leadership position in crops such as sunflower, rice, corn, mustard, cotton,
etc. Advanta uses the Molecular Marker Technology in some crops, while building up value-
added biotech traits through seeds.
A financially sound company with the ability to invest in the future, Advanta with its strong
network of collaborations is a preferred partner for technology providers. The company has a
unique opportunity to capitalise on future potential benefits of innovation in the hybrid seeds
industry. It has an outstanding base, both in terms of its market share in key crops and its
proprietary products and expertise.
Established in 1994, Advanta Limited is active in the seeds business.It is a plant genetics
company. It's corporate office and headquarters are in Hyderabad, Telangana. Advanta is
amongst the leaders in the agricultural industry having its presence in six continents. Advanta is
a world leader as far as forges and grain are concerned. It is listed in NSE and BSE indexes.
5. Monsanto India :
9. Rasi Seeds :
Arvind Kapur - CEO
As the name suggests, Rasi Seeds is involved in the agricultural seeds production. It was founded
in 1973. Seeds for pearl millet, maize and cotton are produced by Rasi Seeds. It is one of the best
biotech companies of India and has won many awards for offering best quality seed and
expertise in farming.
In September 2020, President Ram Nath Kovind gave his assent to the three 'Agriculture Bills'
that were earlier passed by the Indian Parliament. These Farm Acts are as follows:
1- Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020
2- Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services
Act, 2020
From the ancient age to the present, humans have always had an important role in breeding
plants and animals. Explore how these advancements have helped to expand trade, create more
resilient crops and sustain life around the world.
9000 BCE
Agriculture is born
Due to its temperate climate and rich soil, hunter-gatherers began to settle in small communities
in the "Fertile Crescent," the area between the Euphrates and the Tigris rivers. They learned to
produce their own food as farmers began to plant harvest grains.
8700 BCE
The earliest known ancestor of corn is a variety of Mexican wild grass called teosinte. By
suppressing the number of branching stalks in the species, farmers were able to grow larger ears
with more kernels that more closely resembles corn today.
7000 BCE
Rice farming transformed nomadic cultures. More so than any crop, rice drove societies and
economies, and spawned some of the first urban centers, empires and dynasties.
6700-6500 BCE
As wild game populations became depleted, sheep, goats and pigs were increasingly raised for
food production. Consistent exposure to human settlements caused the animals to grow more
tame and become an accessible food source.
5000 BCE
Because the tuber of wild potatoes contain poisonous alkaloids, one of the first steps ancient
farmers made toward developing the potato we know today was to replant a variety with a lower
alkaloid content. Farmers also chose to plant larger specimens due to the naturally small size of
wild potatoes.
3500 BCE
Developing a new crop through plant breeding would often take centuries, if not millennia, to
complete. However, squash became domesticated quickly, selected based on traits like edibility,
seed size and rind thickness. Beans were chosen for grain size and seed coat thickness.
300 BCE
The Greeks develop grafting, a plant breeding process that joins parts from two different plants
to produce a new plant, and apply the innovation to crops. Grafting made the farming of woody
plants, such as apples, pears and plums, possible.
1760-1795
English farmer Robert Bakewell revolutionized sheep and cattle farming by methodically
breeding animals, based on the traits he saw in them, for better meat and wool production.
1859
He writes, "We can not suppose that all the breeds were suddenly as perfect and as useful as we
see them now... Nature gives successive variations; man adds them up in certain directions useful
to him. In this sense he may be said to make for himself and useful breeds."
1865
1903-1933
1944
Norman Borlaug uses cross-breeding to develop dwarf wheat varieties in Mexico, which were
high-yielding and disease-resistant. By expanding access to food, his work in Mexico and India
saved a billion lives. His research improved food security in these nations and launched the
Green Revolution.
1953
Drawing on Rosalind Franklin's research, Francis Crick and James Watson discover DNA's
double helix structure. Their discovery showed how DNA replicates and how hereditary
information is coded on it. It also paved the way for ongoing discoveries in the field of molecular
biology.
1953-1999
Researchers worldwide further explore the genetic code of plants and animals, making future
innovations possible.
2000
Scientists sequence the first genome sequencing of a flowering plant, Arabidopsis thaliana,
which contains more than 25,000 genes, helping to clarify the specific functions different genes
play. By better understanding genomes, plant scientists can more efficiently develop new
varieties.
2003
Scientists developed these crops by making minor changes to their genetic code to make them
resistant to diseases, pests and more.
2012
Scientists publish a landmark paper describing CRISPR, an enzyme that can edit an organism's
DNA, to turn on and off certain genes. The discovery opens the door to exciting innovations in
plant and animal breeding.
2014-15
National Crop Insurance Programme (NCIP) [2013-14]
• Modified National Insurance Scheme aimed at ensuring food security, crop diversification and
enhancing the growth of the sector
• Weather-based crop insurance was introduced that aimed to minimize the financial loss of the
insured farmers on account of anticipated crop loss resulting from unfavorable weather
conditions
• Coconut Palm Insurance Scheme aimed at minimizing the risks faced by the coconut cultivating
farmers
• Allocation of USD830 million for the development of micro-irrigation, watershed and Pradhan
Mantri Krishi Sinchai Yojana
• State government are compelled to fund the agriculture sector, take appropriate measures to
achieve the targeted growth rate and address issues of farmers.
2016
Pradhan Mantri Fasal Bima Yojana (PMFBY) [2016]
• The existing National Agricultural Insurance Scheme (NAIS) and the Modified National
Agricultural Insurance Scheme (MNAIS) were replaced by PMFBY, from April 1, 2016.
• In 2016, the central government launched a crop insurance policy, Pradhan Mantri Fasal Bima
Yojana, for providing financial support to farmers and covering their crop losses. The premium
was payable on the principal amount to the farmers.
2017
APMC farmers go cashless
In January 2017, Indore Agricultural Produce Market Committee (APMC) adopted a cashless
payment policy and farmers started accepting alternative modes of payments such as cheques
and RTGS.
In February 2017, as an effort to protect the farmers against price volatility, Niti Aayog came up
market fees and other levies are paid to the APMC for contract framing when no services such as
market facilities and infrastructure are rendered by them. In this context, the Committee of State
Ministers on Agricultural Reforms recommended that contract farming should be out of the
ambit of APMCs. Instead, an independent regulatory authority must be brought in to disengage
contract farming stakeholders from the existing APMCs.
As per the draft Model Act, contract farming will be outside the ambit of the state APMCs. This
implies that buyers need not pay market fee and commission charges to these APMCs to
undertake contract farming.
• The import duty was scrapped on capital goods and raw materials for 100 percent export-
oriented units.
• Full excise duty exemption was provided for goods that are used in the installation of cold
storage facilities.
• Services like pre-conditioning, ripening, waxing, retail packing, precooling, labeling of fruits and
vegetables were exempted from service tax.
2018
Agriculture Export Policy, 2018
• The Agriculture Export Policy was framed with a focus on agriculture export-oriented
production, export promotion, better farmer realization, and synchronization within policies and
programs of the Government of India. It lifted all restrictions on organic and processed food, to
NLNNJ
• In September 2018, the Government of India announced a Rs 15,053 crore procurement policy,
under which states can decide the compensation scheme and can also partner with private
agencies to ensure fair prices for farmers in the country
• Ministry of Food Processing Industries launched a new Centrally Sponsored Scheme (CSS) to
promote facilities for post-harvest operations, including setting up of food processing industries
in India
2019
Pradhan Mantri Kisan Maan-Dhan Yojana (PMKMY)
• A minimum fixed pension of Rs 3000 to be provided to eligible small and marginal farmers on
attaining the age of 60 years
• The beneficiary is required to make a monthly contribution between Rs 55 to Rs 200 to the
Pension Fund depending on the age of entry into the scheme
• The scheme aims to cover around 3 crore beneficiaries. As of 14th November 2019, 2 million
farmers in the country were registered under the scheme.
• A budgetary provision of Rs 900 crore was made for the year 2019-20
• Prime Minister of India launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan)
and transferred Rs 2,021 crore to bank accounts of more than 10 million beneficiaries on
February 24, 2019.
• Eligible farmers received Rs 6,000 in three installments
Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM
KUSUM)
• Ministry of New and Renewable Energy (MNRE) launched the Pradhan Mantri Kisan Urja
Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme for farmers for the installation of
solar pumps and grid-connected solar and other renewable power plants in the country.
• The scheme aims to add solar and another renewable capacity of 25,750 MW by 2022
2020
2020 saw reforms in agricultural policies and financial boost through government investments,
primarily driven by the motive to reduce the adversity caused by COVID19.
Key Highlights
• DE regularization of agricultural commodities like cereals, pulses, oilseeds, onions and potatoes.
• Unless it is a case of emergency, under the amended regulations, there will be no requirement of
storing certain stock of these commodities.
• Amendments to ECA will allow farmers to engage in inter-state trade, which was not allowed
earlier.
• Changes will encourage creating a legal framework for allowing contract farming to boost the
incomes of producers.
• Reforms will liberalize Indian agriculture, encourage free markets and reduce government
intervention.
• The ordinance will allow farmers to engage with processors, aggregators, large retailers,
exporters passed.
The electronic-National Agriculture Market (e-NAM) platforms will witness another round of
expansion. The digital agriculture market that enhances the scope of inter-state trade will add
PMQ-NAM platforms. This will take the list of electronically connected wholesale markets in the
country to 1,000 this year. The trade on its portal has already reached Rs 91,000 crore. Using this
portal, the farmers can access all information on the e-NAM platform easily through their mobile
phones from anywhere. This trading platform intends to reduce transaction costs, bridging
information asymmetry and helps in expanding the market access for farmers so that they can get
better prices of their produce.
As per eNAM data of June 2020, about 585 APMC markets in 16 states and 2 Union Territories
(UTs) have been integrated into the e-NAM platform. More than 1.65 crore farmers and 1.27
lakh traders have been registered at the portal, launched in April 2016.
From the Rs 20 lakh crore economic package that was announced by Indian Prime Minister to
combat the impact of coronavirus, Rs 1 lakh crore will be allocated to the agriculture sector and
its allied activities. The fund will be used on the creation of agricultural infrastructure like cold
storage chains, post-harvest management, warehouses.
Key highlights
• Rs 10,000 crore fund will focus on the micro-sized food enterprises to increase the production,
marketing, and branding of those agricultural outputs which are specific to a certain region
• Rs 15,000 crore will be used to support dairy infrastructure in the country which will help the
private segment of this industry, creating plants and exporting niche products.
• Rs 4,000 crore will be used to promote herbal plants focused agriculture which is expected to
generate Rs 5,000 crore of income for the farmers
• Rs 500 crore will be used towards beekeeping.
• The Budget 2020-21 has identified the agriculture sector as one of the key drivers of the
economy. As per Union Budget 2020-21, the Government will work with state Governments to
allow farmers to benefit from e-NAM.
• The Government announced plans to launch Krishi Udaan on international and national routes.
Fish production is expected to increase to 200 lakh tons by 2022-23.
• PM-KUSUM scheme has expanded to support 20 lakh farmers for setting up stand-alone solar
pumps and will help another 15 lakh farmers to set up their grid-connected solar pumps.
• Viability gap funding will be provided under Union Budget 2020-21 for setting up warehouses.
The coverage of artificial insemination will be increased to 70 %from 30 % at present.
Gene editing is the latest advancement in evolving plant and animal breeding methods, making
the process more efficient and precise than ever before. In many cases, the changes made
through gene editing could happen naturally through an evolutionary process but now are
possible in a few years instead of decades.
H
environmentally intrusive foods, check out this PLATE OF SUPER FOODS.
5. Impact of Covid-19 on Agriculture Industry :
The ongoing health crisis around COVID19 has affected all walks of life. Protecting lives of
people suffering from the disease as well as frontline health responders have been the priority of
nations. Governments have swung into actions since the Corona virus attack created an
unprecedented situation. India declared a three-week nation-wide lockdown till mid-April in the
initial phase, which was subsequently extended for achieving satisfactory containment of the
virus spread.
During these challenging times, how does Indian Agriculture respond to the crisis and how do
government measures affect 140 million farm households across the country and thereafter
impact the economy of a very important country in the developing world? We assess the
immediate challenges that COVID19 has posed to the farm sector and suggest mitigation
measures to ensure a sustainable food system in the post-crisis period.
Immediately after the nation-wide lockdown was announced, the Indian Finance Minister
declared an INR 1.7 trillion package, mostly to protect the vulnerable sections (including
farmers) from any adverse impacts of the Corona pandemic. The announcement, among a slew
of benefits, contained advance release of INR 2000 to bank accounts of farmers as income
support under PM-KISAN scheme. The Government also raised the wage rate for workers
j ac H J
take care of the vulnerable population, Pradhan Mantri Garib Kalyan Yojana D i
scheme for welfare of the poor), has been announced. Additional grain allotments to registered
beneficiaries were also announced for the next three months. Cash and food assistance to persons
engaged in the informal sector, mostly migrant laborers, have also been announced for which a
separate PM-CARES (Prime Minister Citizen Assistance and Relief in Emergency Situations)
fund has been created.
The Indian Council of Agricultural Research (ICAR) has issued state-wise guidelines for farmers
to be followed during the lockdown period. The advisory mentions specific practices during
harvest and threshing of various rabi (winter sown) crops as well as post-harvest, storage and
marketing of the farm produce.
granted a moratorium of three months (till May 31) by banking institutions with 3 percent
concession on the interest rate of crop loans up to INR 300,000 for borrowers with good
repayment behavior.
Immediate Challenges
In spite of all these measures and in view of continuing restrictions on movements of people and
vehicular traffic, concerns have been raised regarding negative implications of COVID19
pandemic on the farm economy. This is the peak of rabi season in India and crops like wheat,
gram, lentil, mustard, etc. (including paddy in irrigated tracts) are at harvestable stage or almost
reaching maturity. This is also the time when the farm harvests reach the mandis (market yards)
for assured procurement operations by designated government agencies. Moreover, any severe
disruption to the supply of perishable fruits and vegetables, dairy products, fish, etc. having
mobilized to meet the increasing demand from a bulging middle class as well as urban and rural
consumers, may create irreparable damage to all actors in the supply chain. The migration of
workers from few parts to their native places has also triggered panic buttons, as they are crucial
for both harvesting operations and post-harvest handling of produce in storage and marketing
centers. The Union Home Ministry, in a very significant move, has notified to exclude
movement of farmers, farm laborers and harvesting and sowing-related machines from the
purview of lockdown.
Making the food grains, fruits and vegetables and other essential items available to consumers,
both in rural and urban areas, is the most critical challenge for Government machinery during the
lockdown period. Smooth functioning of the supply chain, with adequate safety measures for the
people involved, is of paramount importance. Transportation of public distribution system (PDS)
items to last mile delivery agents, by both rail and road, has to be ensured by respective
Government agencies. Distribution of the commodities to vulnerable population, while
maintaining prescribed guidelines and protocol, particularly of social distancing, must be
effectively monitored.
As the ongoing lockdown coincides with the rabi harvesting season, farmers across the country
look up to the Government to ensure uninterrupted harvesting of the crops as well as smooth
and intra-State movements of farmers/laborers, as well as harvesting and related farm machines,
is indeed a step in right direction. While ensuring availability of laborers for critical farm
operations, their safety (from any COVID infection) and welfare must be prioritized by the
Government systems.
The sale of dairy products; fish; poultry, etc. has also been hit during the lockdown period as the
uptake by the organized industry players has been affected due to shortage of workforce and
transport issues.
As weather has been very erratic over past few months in many parts, harvested produce must
also be protected from such risks.
Mitigation Measures
The poor sections of society are always the hardest hit in any disaster or pandemic situation.
With about 85 percent of Indian farm households being small and marginal farmers, and a
significant part of the population being landless farm laborers, welfare measures to contain any
damage from COVID are definitely going to help them with sincere implementation. The focus
of the Government therefore has to be to protect the lives of every citizen. However, people
living on agriculture and allied activities, mostly those losing their income from informal
employment at this lockdown period, have to be provided with alternative avenues (cash
transfers) till the economy bounces back (when this health crisis is successfully overcome).
To sustain the demand for agricultural commodities, investments in key logistics must be
enhanced. Moreover, e-commerce and delivery companies and start-ups need to be encouraged
with suitable policies and incentives.
The small and medium enterprises, running with raw materials from the agriculture and allied
H J
To obviate the immediate concerns of scarcity of farm labor, policies must facilitate easy
availability of machinery through state entities, Farmer Producer Organizations (FPOs) or
custom hiring centers (CHCs) with suitable incentives. It is also suggested to explore leveraging
NREGS funds to pay part of the farm labor (with farmers paying the balance wage amount) to
lessen the monetary burden on the farmer, while ensuring wage employment to the landless
laborers and workers.
To answer queries relating to the announced measures of Government and addressing grievances
of farmers, besides providing advisories on farm operations; availability of agri-inputs, dedicated
toll-free helplines/call centers (in local/vernacular languages) must be established by the
Government.
Agriculture in India is a State subject, and as has been observed in past years, policies and
programs vary from one State to the other. However, agricultural activities, being interconnected
in neighboring regions, agri-sops or benefits must not distort the market scenario. Waiver of farm
loans, evidences suggest, have not fully benefitted the majority of small and marginal farmers.
Rather, it affects the future credit behavior of the borrowers and thus negatively impacts the
agricultural credit culture altogether. As the kharif (rainy/wet) season is fast approaching,
institutional lending of crop loans should be expanded and facilitated for smooth (and sufficient)
flow of credit to borrowing farmers. Agri-inputs seeds, fertilizers, agro-chemicals, etc. have to
be pre-positioned for easy availability. Private sector must play a significant role with necessary
policy support.
Relaxation of the norms by Agricultural Produce Market Committees (APMCs) allowing farmers
to sell their produce beyond the designated mandis will certainly ease the burdens of farmers.
State Governments must gear up their machineries for smooth procurement operations of
price support schemes.
Under the COVID19 pandemic, being a health crisis of unprecedented proportions, the major
share of future Budget allocations obviously (and logically so) would be apportioned for the
health sector. However, investments should not be crowded out of the primary sector to prevent
irreversible damage to the farm economy. Manufacturing and services sectors may be severely
hit in the short run till the time the economy bounces back. It will be thus very appropriate to
focus attention on the agriculture sector as a growth engine and also to bring resilience in food
(and nutrition) security. At this critical stage, where climate change is already adversely
impacting the agriculture sector, productive investments, including on research and innovation,
would be very purposeful.
Structural reforms such as land leasing, contract farming and private agricultural markets, etc.
have long been advocated to bring enhanced investments into the agriculture sector and to push
its growth. However, there has not been uniform implementation of these legislations by State
Governments and so the full potential of the sector is unrealized. These reforms need significant
political will. Concerns of a slowdown in the zeal of States, post-COVID scenario, could be
tackled with suitable incentive mechanisms by the Federal Government to the States.
With a burgeoning population, there is a corresponding rise in food demand in India. However,
the negative externalities of the Green Revolution, particularly the environmental trade-offs and
staple cereals fundamentalism, have since been realized. It is thus desirable to switch over to a
suitable model with a far stronger nutrition focus where diets are more diverse. A post-COVID
situation offers that unique opportunity to repurpose the existing food and agriculture policies for
a healthier population.
There have been global concerns, rather speculations, on restriction of exports of agricultural
commodities by a few global players. India, being trade-surplus on commodities like rice, meat,
milk products, tea, honey, horticultural products, etc. may seize the opportunities by exporting
such products with a stable agriculture valued at 38 billion US Dollars in 2018-19 and can rise
up further with conducive policies. Development of export-supportive infrastructure and logistics
would need investments and support of the private sector, that will be in the long term interests
of farmers in boosting their income.
Many climate models predict a favorable monsoon in the 2020 season (the India Meteorological
Department has also since officially announced) as the El-Nino weather phenomenon, that
disrupts rainfall in India, is not evident. This is indeed a good news in the COVID scenario,
assuming agriculture can practice largely unscathed.
Good news is that Government of India has now increased its focus on nutrition (besides food)-
(farm productivity). Changing the consumer behavior with suitable programs and incentives is
already in the agenda. For all these to happen, the existing landscape of policy incentives that
favor the two big staples of wheat and rice has to change. Designing agricultural policies, post-
COVID19 scenario, must include these imperatives for a food systems transformation in India.
Conclusion :
The agricultural sector is of vital importance for the region. It is undergoing a process of
transition to a market economy, with substantial changes in the social, legal, structural,
productive and supply set-ups, as is the case with all other sectors of the economy. These
changes have been accompanied by a decline in agricultural production for most countries, and
have affected also the national seed supply sectors of the region. The region has had to face
problems of food insecurity and some countries have needed food aid for IDPs and refugees.
Due to the relatively low demographic pressure projected for the future, the presence of some
favourable types of climates and other positive factors, including a very wide formal seed supply
sector, it should be possible to overcome problems of food insecurity in the region as a whole,
and even to use this region to provide food to other food-deficient regions. Opportunities must
therefore be created to reach these results.
In order to address the main constraints affecting the development of the national and regional
seed supplies that are mentioned here, the region requires integrated efforts by all national and
international stakeholders and institutions involved in seed supply and plant genetic resource
management. On practical issues, lessons learned by some countries could be shared with other
countries; e.g. on how to progress with the transition or how to recognize the most immediate
needs of farmers. Appropriate policies should also be established, at various levels, in order to
facilitate seed investment and development in the region.
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