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HomePosts Tagged "government of India" (Page 2)
Company News, Horticulture, India

The event will be held from September 25th to 28th at the Bangalore Palace in Bengaluru

The 5th World Coffee Conference (WCC) 2023 has been announced by the International Coffee Organisation (ICO), in partnership with the Coffee Board of India, Ministry of Commerce and Industry, Government of India, Government of Karnataka, and the coffee industry. The event will be held from September 25th to 28th at the well-known Bangalore Palace in Bengaluru.

During the unveiling, the global coffee community gathered to celebrate the future of the coffee sector, with the theme of ‘Sustainability through Circular Economy and Regenerative Agriculture,’ reflecting the industry’s commitment to environmentally friendly practices. Dr S. Selvakumar, Principal Secretary of the Commerce & Industries Department, Government of Karnataka, highlighted the investment and employment opportunities across the coffee value chain.

Dr K.G. Jagadeesha, CEO, and Secretary, of the Coffee Board of India, announced Rohan Bopanna, India’s top Tennis Player and Arjuna Awardee, as the Brand Ambassador for the event, which marks the first time Asia will host the conference.

Jagdish Patankar, Executive Chairman of MM Activ Sci-Tech Communications and Event Curators, presented an exciting lineup of activities, including a Conference, Exhibition, Skill-Building Workshops, CEO & Global Leaders Forum, Growers Conclave, Competitions & Awards, Plantation Tours, Cultural Evenings, Buyer-Seller Meet, and B2B Meetings, ensuring a comprehensive and enriching experience for attendees.

The event will be held from September

AgroPolicy, Foodgrains, India

A quantity of 1.16 LMT wheat from 361 depots and 1.46 LMT rice from 178 depots were offered from across the country

The Food Corporation of India (FCI) organised the 5th e-auction of 2023-24 to sell wheat and rice.  The e-auction sold 1.06 LMT of wheat and 100 MT of rice.

In order to control the retail price of rice, wheat and atta, weekly e-auctions are being organised. The government of India is committed towards price stabilisation and its market intervention is aimed at providing relief to the consumers.

A quantity of 1.16 LMT wheat from 361 depots and 1.46 LMT rice from 178 depots were offered from across the country.

The weighted average selling price was Rs. 2182.68/qtl for FAQ wheat against the reserve price of Rs. 2150/qtl Pan India whereas the weighted average selling price of URS wheat was Rs. 2173.85/qtl against the reserve price of Rs. 2125/qtl.

The average selling price was Rs. 3151.10/qtl for rice against the reserve price of Rs. 3151.10/qtl Pan India.

In the current tranche of e-auctions, the reduction in retail price is being targeted by offering up to 100 tonnes maximum for a buyer for wheat and 1000 tonnes for rice. This decision encourages small and marginal end users and ensures that more participants could come forward and bid for the quantity from their depot of choice.

A quantity of 1.16 LMT wheat from

AgroPolicy, Foodgrains, India, Trade

To ensure adequate domestic availability at reasonable prices.

In order to ensure adequate availability of Non-Basmati White Rice in the Indian market and to allay the rise in prices in the domestic market, Government of India has amended the Export Policy of above variety from ‘Free with export duty of 20 per cent’ to ‘Prohibited’ with immediate effect. The domestic prices of Rice are on an increasing trend. The retail prices have increased by 11.5 per cent over a year and 3 per cent over the past month.

Export duty of 20 per cent on non-basmati white rice was imposed on September 8 ,2022 to lower the price as well ensure availability in the domestic market.  However, the export of this variety increased from 33.66 LMT (Sept-March 2021-22) to 42.12 LMT (Sept-March 2022-23) even after imposition of 20 per cent export duty. In the current FY 2023-24 (April-June), about 15.54 LMT of this variety of rice was exported against only 11.55 LMT during FY 2022-23 (April-June), i.e., an increase by 35 per cent. This sharp increase in exports can be ascribed to high international prices due to geo-political scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, etc.

Non-Basmati White Rice constitutes about 25 per cent of total rice exported from the country.  The prohibition on export of Non-Basmati White Rice will lead to lowering of prices for the consumers in the country.

However, there is no change in Export policy of Non-Basmati Rice (Par Boiled Rice) and Basmati Rice, which forms the Bulk of Rice exports. This will ensure that the farmers continue to get the benefit of remunerative prices in the international market.

To ensure adequate domestic availability at reasonable

AgroPolicy, India, Machinery – Post-harvesting

Techno-commercial pilot projects for Paddy Straw Supply Chain will be established under the bilateral agreement between the Beneficiary/Aggregator and Industries utilising the paddy straw.

The Government has revised the Crop Residue Management guidelines enabling efficient ex-situ management of paddy straw generated in the States of Punjab, Haryana, UP and Delhi. As per the revised guidelines, techno-commercial pilot projects for Paddy Straw Supply Chain will be established under the bilateral agreement between the Beneficiary/Aggregator (Farmers, rural entrepreneurs, Cooperative Societies of Farmers, Farmers Producer Organizations (FPOs) and Panchayats) and Industries utilizing the paddy straw.

Govt shall provide financial assistance on the capital cost of machinery and equipment. The required working capital may be financed either by the Industry and Beneficiary jointly or utilising the Agriculture Infrastructure Fund (AIF), NABARD Financial or Financing from the Financial Institutions by the beneficiary. The land for storage of the collected paddy straw will be arranged and prepared by the beneficiary as may be guided by the end use industry.

Project proposal based financial assistance will be extended for machines and equipment such as Higher HP Tractor, Cutters, Tedder, Medium to Large Balers, Rakers, Loaders, Grabbers and Telehandlers which are essentially required for establishment of paddy straw supply chain.

State Governments shall approve these projects through project sanctioning committee. Government (jointly by Central and State Governments) will provide financial support of @ 65 per cent of the project cost, Industry as primary promoter of the project will contribute 25 per cent and will act as the Primary consumer of the feedstock collected and Farmer or group of Farmers or Rural Entrepreneurs or Cooperative Societies of Farmers or Farmers Producer Organizations (FPOs), or Panchayats will be the direct Beneficiary of the project and will contribute the balance 10 per cent.

The Outcomes of the above interventions are:

  • The initiative will supplement the efforts of paddy straw management through in-situ options
  • During the three-year tenure of the interventions, 1.5 million metric tonnes of surplus paddy straw are expected to be collected which would otherwise have been burnt in fields.
  • About 333 biomass collection depots of capacity 4500 MT will be built in the States of Punjab, Haryana, Uttar Pradesh and Madhya Pradesh.
  • Air pollution caused by stubble burning will be considerably reduced.
  • It would generate employment opportunities of about 9,00,000-man days.
  • The interventions will encourage a robust supply chain management of paddy straw which shall further help in making paddy straw available for various end uses i.e., power generation, heat generation, bio- CNG, etc. by Power/bio-CNG/bio-ethanol producers
  • Establishment of supply chain would result in new investments in Biomass to biofuel and energy sectors.

Techno-commercial pilot projects for Paddy Straw Supply

Agro chems – Fertilizers, AgroPolicy, India, Supply Chain

11 persons were jailed under the Prevention of Black Marketing and Maintenance of Supplies (PBM) Act

Multipronged measures are being taken by the Department of Fertilisers, Government of India for deterrence against any malpractices and to ensure quality fertilisers for the farmers, under the directions of Dr Mansukh Mandaviya, Union Minister for Chemicals and Fertilisers. These measures have resulted in averting the diversion and black marketing of fertilisers in the country.

Special teams of dedicated officers called Fertiliser Flying Squads (FFS) have been formed to keep a strict vigil and to check diversion, black marketing, hoarding and supply of sub-standard quality fertilisers across the country.

The Fertiliser Flying Squads have conducted over 370 surprise inspections across 15 states/UTs which included mixture units, Single Superphosphate (SSP) units and NPK (Nitrogen, Phosphorus, Potassium) units. Consequentially, 30 FIRs have been registered for diversion of urea, and 70,000 bags have been seized of suspected urea (from Gujarat, Kerala, Haryana, Rajasthan and Karnataka (excl. GSTN seizure). Of which 26199 bags have been disposed of as per FCO guidelines). The FFS has also inspected three border districts of Bihar (Araria, Purnia, W.Champaran) and 3 FIRs have been filed against urea diverting units; 10 including 3 mixture manufacturing units in border districts have been de-authorised.

112 mixture manufacturers have been deauthorised due to several discrepancies and lapses found in documentation and procedures. Sample testing has also been ramped up with 268 samples tested as of now, of which 89 (33 per cent) have been declared sub-standard and 120 (45 per cent) found with neem oil content. For the first time, 11 persons have been jailed under the Prevention of Blackmarketing and Maintenance of Supplies (PBM) Act for the diversion and black marketing of urea in the last year. Several other legal and administrative proceedings have also been exercised by states through the Essential Commodities (EC) Act and Fertiliser Control Order (FCO).

11 persons were jailed under the Prevention

Agro chems – Pesticides, AgroPolicy, India

This move will ensure that Indian farmers continue to have access to the technology for crop protection at an affordable price, as these pesticides are manufactured in India.

The Government of India after an extensive review of 27 pesticides through an appointed Expert Committee, based on substantial data on safety and efficacy submitted by the Pesticides industry, decided to continue the use of 24 pesticides. This decision has been welcomed and lauded by the agri community, including small holding farmers as they have been already safely using these products for the last decades on multiple crops.

This move will ensure that Indian farmers continue to have access to the technology for crop protection at an affordable price, as these pesticides are manufactured in India.

The government’s decision to continue the use of these critical 24 pesticides demonstrates the realities of agriculture and the importance of farmers having access to technology that is affordable as they need to produce quality food at an affordable price compared to exorbitantly expensive imported substitute pesticides.

Farmers across the country have welcomed the government’s decision, saying that access to safe and effective pesticides is critical for protecting crops and ensuring a good harvest. The continued use of these 24 critical pesticides is a necessary step towards safeguarding India’s food production system while ensuring that farmers can continue to produce food efficiently and sustainably.

Gavneet Singh, Director, Ambala Farmer Producer Organizations, Haryana, said, “As farmers, we know how important it is to have access to safe and effective pesticides to protect our crops and ensure a good harvest. This decision by the government is a positive step as these pesticides continue to be recommended by the State Agriculture Universities and farmers have the experience of using them safely on their crops.”

Harpreet Singh, CEO Pehowa Farmer Producer Organizations, Haryana, said “this is an important step towards safeguarding yield and livelihood. We have worked with these pesticides and confident of its performance. Opting for any alternative may have impacted our input costs and overall production.”

Pest and disease control is critical for maintaining the quality and safety of our food supply. The continued use of these 24 critical pesticides is a necessary step as these pesticides are also used as mixture with relatively new products for resistance management against potentially resistant weeds, insects and diseases.

Insect pests can create crop damages between 20 – 30 per cent including grains stored in the warehouses.  Pesticides are also used as smart fumigants for grain storage to protect crops from storage insects in wheat, rice, pulses and oil-seeds.

Government of India has already approved use of drones for safer and efficient use of pesticides. Pest and disease control is critical for maintaining the quality and safety of our food supply. Pesticides are carefully designed to target specific pests and diseases, and their use is strictly regulated to ensure that they do not harm non-target organisms or the environment.

This move will ensure that Indian farmers

AgroPolicy, India, Pulses

Department deputed 12 senior officers to visit various places in the States of Karnataka, Madhya Pradesh, Maharashtra and Tamil Nadu to take stock of ground reality.

Senior Officers from the Department of Consumer Affairs visited 10 various locations across four States to interact and observe stock disclosure status of Tur and Urad during past days.

In this regard, Secretary, Department of Consumer Affairs, Rohit Kumar Singh took an internal meeting with these officers who visited major pulses markets and interacted with various market players. During the last week, apart from holding a meeting with All India Dal Mills Association at Indore by the Secretary, Government of India, on 15th April, 2023, the Department deputed 12 senior officers to visit various places in the States of Karnataka, Madhya Pradesh, Maharashtra and Tamil Nadu to take stock of ground reality.

The interactions with ground level market players and State officials revealed that while the number of registration and stock disclosure on the e-portal is increasing, substantial number of market players have either not registered or failed to update their stock positions on regular basis. It has been observed that stocks under transaction, like, farmer’s stocks lying in mandi for auction, stocks awaiting customs clearance at ports etc. escaped the current monitoring mechanism. Further, it has also been observed that millers and traders/dealers have resorted to holding their stocks in warehouses in the name of farmers in a deliberate attempt to escape stock declaration.

Senior officers of the Department visited various locations, namely, Indore, Chennai, Salem, Mumbai, Akola, Latur, Sholapur, Kalaburagi, Jabalpur and Katni and interacted with officers of the State Governments, millers, traders, importers and port authorities and conducted meeting with associations of millers, importers and traders. The market players were sensitized on the importance of stock declaration and have been asked to declare their stocks truthfully and regularly or else stringent action such as seizure and confiscation of undeclared stocks may be done by the State Government.

To improve the stock disclosure data, the Department is making certain changes in the e-portal https://fcainfoweb.nic.in/psp/ such as, incorporating text boxes for providing warehouse in which stock is held, provision for dealer/commission agent/mandi trader to upload stock data of farmer lying in his shop yard for auctioning etc.

The office bearers of Importers association informed that Traders from other States like Telengana, Rajasthan, Andhra Pradesh, and Karnataka are also importing Tur Dal from Chennai Port and requested clarification about their reporting in the State of Importers or in the State of receiving the import to ensure no duplication of data.It was clarified that the stocks should be reported in the State where it is physically available/stocked.

The Department has already directed State Governments and District Administrations to intensify the enforcement of stock declaration by conducting stock verification and take strict action on undisclosed stocks under relevant sections of the EC Act, 1955 and the Prevention of Black marketing and Maintenance of Supplies of Essential Commodities Act, 1980. States have also been asked to look into the data pertaining to FSSAI licences, APMC registration, GST registration, warehouses and custom bonded warehouses and encourage these entities also to report their declarations of stock in order to widen the coverage of market players.

Department deputed 12 senior officers to visit

Acts & Schemes – Centre, AgroPolicy, Animal Health, Dairy, Goat farming, India, Live Stock

 DAHD is also collaborating with Ministry of Rural Development to train more animal health workers/paravets.

During the second round of the Foot and Mouth Disease vaccination drive, around 24 crore cattle and buffaloes in the country have now been covered out of a targeted population of 25.8 Crore Cattle (as per data furnished by the states); reaching a near universal coverage of over 95 per cent which is well beyond the herd immunity level. Reaching this milestone has been made possible due to the relentless efforts of the Department of Animal Husbandry and Dairying (DAHD), Government of India, State/ UT Governments/ administration, and most importantly the support of the livestock owners.

The program is 100 per cent funded by Government of India which is centrally procuring vaccines against FMD and supplying to States and is also providing for vaccination charges, accessories, awareness creation, cold chain infrastructure etc. to enable the States/ UTs to undertake vaccination in campaign mode. The livestock owners are sensitized and made aware through various information, education and communication measures to get their animals vaccinated and requested to contact the nearest livestock health workers/ veterinarians to avail the facility. DAHD is also collaborating with Ministry of Rural Development to train more animal health workers/paravets.

It is expected that with such continued efforts, the goal of controlling and eventually eradicating Foot & Mouth Disease from the country will be achieved which will also help in increasing the income of livestock farmers/ keepers and in boosting India’s trade in livestock products.

Foot and Mouth Disease (FMD) is a major disease of livestock especially in cattle and buffaloes in India and causes huge economic loss to livestock owners due to a reduction in milk yield. To address the problem, the Department of Animal Husbandry and Dairying (DAHD) launched the National Animal Disease Control Programme (NADCP) in 2019 which is now a part of Livestock Health & Disease Control Programme. The program aims to control Foot & Mouth Disease (FMD) through vaccination leading to its eventual eradication by 2030. This will result in increased domestic production and ultimately in increased exports of livestock products. Currently under this program vaccination is carried out in all cattle and buffaloes.

 DAHD is also collaborating with Ministry of

Agrotech, Biofuel industry, Company News, India

MNRE supports new age digital marketplace for bioenergy and encourages entrepreneurial model for FPOs and farmers

 BiofuelCircle- a digital marketplace for biomass and biofuels, is developing a digital enterprise for FPOs and farmers. Under the guidance of MNRE and GIZ, it has partnered with BAIF to set up 20 such enterprises in Maharashtra. A workshop was organized in Pune to showcase the model and demonstrate on-ground development of strengthening the biomass supply chain.

The workshop was graced by the presence of Dinesh Jagdale, Joint Secretary, MNRE, Government of India as a keynote speaker where he elaborated on the changing energy landscape in India and how the country has taken a leadership position in terms of renewable energy. 

The two-day workshop was organized at the BAIF Campus in Pune where various industry experts deliberated on the potential of clean energy using technology-based solutions.  

Elaborating further Dinesh Jagdale, Joint Secretary, MNRE, Government of India said, “A digital marketplace like BiofuelCircle can shape the future biomass market for India. It gives an opportunity to a buyer and seller to interact anonymously, discover price through market mechanism, for – delivery time, place, and commodity of their choice. It also presents an opportunity for FPOs and rural enterprises to create viable business model to supply Agri residue as a green energy alternative.”

Adding to this, Suhas Baxi, Co-founder and CEO, BiofuelCircle said, “At BiofuelCircle we aim to establish a connect between industrial and rural India. We are working towards demystifying and standardizing biomass to make it more accessible by providing value discovery for manufacturers and buyers. Challenges for the development of FPOs have been identified and we are now working towards addressing them by taking the mission forward which will contribute towards sustainability and green energy in India.”

Bharat Kakade, President and Managing Trustee, BAIF said “It is a privilege to be a part of this initiative where we are working towards shaping the bioenergy landscape by transitioning it into an enterprise with the support of MNRE and BiofuelCircle. We are working on an integrated program by leveraging technologies to give a new direction to the rural program by creating a vibrant bioeconomy.”  

MNRE supports new age digital marketplace for

AgroPolicy, Finance, India

This will help FCV Tobacco farmers overcome the damage caused by Mandous Cyclonic rains in Andhra Pradesh

Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs, Food and Public Distribution, and Textiles has accorded approval for Rs 28.11 crore to extend special interest free loan @ of Rs 10,000 to each member of Tobacco Board’s Growers’ Welfare Schemes under Southern Regions (Southern Light Soil and Southern Black Soil) of Andhra Pradesh from the Tobacco Growers’ Welfare Fund which will directly benefit 28,112 farmers.

This measure will help the FCV Tobacco farmers overcome the damage caused by Mandous Cyclonic rains and would greatly help the growers to take up immediate damage mitigation measures.

The interest-free loan to the eligible FCV Tobacco farmers will be administered by Tobacco Board, a statutory body under Ministry of Commerce and Industry, Government of India.

FCV tobacco is a major commercial crop grown in 10 districts of Andhra Pradesh with an annual production of 121 m.kg (2021-22) grown in an area of 66,000 ha. FCV tobacco is the major exportable tobacco variety of the total unmanufactured tobacco exports from India. Out of the total unmanufactured tobacco exports (excluding Tobacco Refuse), FCV tobacco exports accounted for 53.62 per cent in terms of quantity and 68.47 per cent in terms of value during FY 2021-22.

 FCV Tobacco growers sell their produce through e-auction platform developed and operated by Tobacco Board, through a transparent process ensuring fair and remunerative prices to farmers.

This will help FCV Tobacco farmers

Agrotech, Company News, India, R&D, Start ups

With the DGCA certificate, AG 365 drone is now eligible for Rs 10 lakh unsecured loans from the AIF

India’s leading drone manufacturer, Marut Drones’ has received the Type Certification approvals from the Director General of Civil Aviation (DGCA) for its tested and robustly designed multi-utility agricultural drone AG 365. “AG 365 is designed and developed for Indian conditions and can be used for multiple purposes giving a higher ROI to the user. AG 365 is extensively tested for more than 1.5 lakh acres and optimised for performance to be used in agriculture. Further, extensive research is undergone with AG 365 for development of crop-specific drone spraying SOPs in collaboration with agricultural universities and research institutes,” the drone manufacturer said.

Having been awarded a type certificate for AG 365 model, the drone is now eligible for INR 10 lakh unsecured loans from the Agriculture Infrastructure Fund (AIF) at a minimal 5-6 per cent interest rate. Further, a 50-100 per cent subsidy can be availed from the Government of India. The made-in-India Kisan Drone – AG 365 has been developed particularly for agricultural purposes to reduce crop loss, lower agrochemical usage, better yield and profits to the farmers, the company said.

With the DGCA certificate, AG 365 drone

Agro Universities, AgroPolicy

To support Government of India’s efforts in creating long-lasting impact pathways to improve nutrition outcomes amongst the low-income population

New Delhi-based Indian School of Business (ISB) announced its collaboration with the Ministry of Agriculture and Farmers Welfare, Government of India to further strengthen agriculture-nutrition convergence. The collaboration will be led by ISB, the University of Sheffield (UoS) and the London School of Hygiene & Tropical Medicine (LSHTM).  This was formally announced by Manoj Ahuja, IAS, Secretary, Ministry of Agriculture and Farmers Welfare, Government of India, at an event in Krishi Bhawan, New Delhi.

ISB will anchor this collaboration in the Ministry which will further augment the government’s efforts in improving nutrition outcomes and strengthening agriculture-nutrition convergence while establishing an institutional mechanism to identify convergence opportunities at both central and state levels.

Over a five-year period, UoS, LHSTM, & ISB, along with ISB’s implementation partners – CInI-TATA Trusts, MSC and PDAG, will work towards the vision to increase the accessibility, availability, and affordability of Nutrient-Dense Foods for low-income population in underserved areas through agriculture-nutrition policy convergence, such that improving nutrition outcomes amongst the target audience becomes a stable policy outcome over an extended time horizon.

Manoj Ahuja, Secretary, Ministry of Agriculture and Farmers Welfare, said, “The need to improve nutrition, particularly of the underprivileged population, is of prime importance. There must be convergence of policies and programmes in agriculture and nutrition to address this pressing need. I am happy we are embarking on this journey with the consortium led by ISB; the Ministry will fully support this collaboration to strengthen research and policy for improved nutrition outcomes.”

Prof Ashwini Chhatre, Executive Director, Bharti Institute of Public Policy, Indian School of Business (ISB), said, “The needle on nutrition in India has been hard to move. The collaboration, with a focus on Nutrient-Dense Foods (NDFs) such as fruits & vegetables (F&Vs) and animal source foods (ASFs), will support Government of India’s efforts in creating long-lasting impact pathways to improve nutrition outcomes amongst the low-income population”.

To support Government of India's efforts in

Country, India, Sugar industry, World

As of October 31, 2022, more than 96 per cent of cane dues of farmers for SS 2021-22 have already been cleared despite record procurement of sugarcane of more than Rs 1.18 lakh crore

The government of India has allowed the export of sugar up to 60 Lakh Metric Tonne (LMT) during the sugar season (SS) 2022-23. The Director General of Food Trade (DGFT) has already been notified to extend the inclusion of sugar exports under the ‘Restricted’ category up to October 31, 2023.

The Central Government has prioritised the availability of about 275 (LMT) of sugar for domestic consumption, about 50 LMT of sugar for diversion to ethanol production and has a closing balance of about 60 LMT as of 30.09.2023. A balanced quantity of sugar produced by sugar mills in the country would be allowed for exports. Since at the beginning of sugar season 2022-23, initial estimates of sugarcane production are available, it has been decided to allow the export of 60 LMT sugar. The sugarcane production in the country will be reviewed periodically and based on the latest available estimates, the quantity of sugar exports to be allowed could be reconsidered.

During SS 2021-22, India exported 110 LMT of sugar and became the second largest exporter of sugar in the world and earned about Rs 40,000 crore worth of foreign exchange for the country. Timely payment and low carrying cost of stocks for sugar mills also resulted in early clearance of cane arrears of farmers. As of October 31, 2022, more than 96 per cent of cane dues of farmers for SS 2021-22 were already cleared despite record procurement of sugarcane of more than 1.18 lakh crore rupees.

In the sugar export policy for SS 2022-23, Government has announced a sugar mill-wise export quota for all sugar mills in the country with an objective system based on the average production of sugar mills in the last three years and the average sugar production of the country in last 3 years. Further, to expedite the sugar exports and to ensure flexibility to sugar mills in the execution of the export quota, mills may decide to surrender the quota partially or fully within 60 days of the date of issue of the order or they can swap the export quota with domestic quota within 60 days.

At the end of Sugar Season 2022-23, it is expected that most sugar mills will be able to sell their products either in the domestic market or in the international market through exports and will clear the cane dues of farmers in time. Thus, the policy has created a WIN-WIN situation for sugar mills in the country.

As of October 31, 2022, more than

AgroPolicy, India, Interaction

In an interaction with AgroSpectrum India, Vijay Sardana, a renowned techno-legal advisor on agribusinesses, explains the key dimensions of agriculture along with the action points that such committees should undertake. Edited excerpts.

Post the repeal of the farm laws last year, the centre was tasked with the forming of a committee to give suggestions on making minimum support price (MSP) more effective, giving more autonomy to the Commission for Agricultural Costs and Prices (CACP) and to suggest measures to strengthen the agricultural marketing system. The committee had its first meeting in August and created sub-groups to examine the important issues hindering the business of agriculture. In an interaction with AgroSpectrum India, Vijay Sardana, a renowned techno-legal advisor on agribusinesses, explains the key dimensions of agriculture along with the action points that such committees should undertake. Edited excerpts.

Can you brief us about how MSP works and the role played by the government for its effective functioning?

There are a lot of issues surrounding agriculture, one of them being the remunerative prices given to farmers.  Here we have to consider the fact that price is a factor of market forces and the government itself cannot play around with the same beyond a certain bandwidth. One classical yet reverse example to explain the case in point is the recent losses being incurred by petroleum companies in the event of the government trying to control it. The Public Sector Units (PSUs), however, are not impacted by such a move as the losses are later absorbed by the government through sacrificed losses or recapitalisation. But the private players have to bear the brunt in such a case, thus being a testament to this theory that remains true in the business of agriculture as well.

What are the possible ways of fixing the demand-supply imbalance to improve the business aspect of agriculture? Can you also shed light on the implications in the event of not doing so?

Creating a demand for the crop is important to avoid crashing of prices due to a demand-supply imbalance.  This is being done by the government through the Public Distribution System (PDS) or Food Security Mission, which is already a saturated mechanism. The second way is through creation of export opportunities and to provide an outlet for the surplus when the international prices are high. The government pursued the latter this year which ultimately led to the crop prices being higher than MSP. The major problem arises in a reverse case when international prices are low and there is more production in the country. In such a case, the government cannot buy all the crops at MSP because it lacks the financial resources to do so. And even if the centre is willing to somehow deploy resources, the same cannot be implemented keeping in mind the rules of the World Trade Organisation (WTO). In the event of not following the regulations, the country can be subjected to reverse pressures and penalties on other exports like marine and software to name a few.  Therefore, when demanding a certain MSP, the farmers should consider all the legalities involved as it’s not a matter of requesting charity from the government but a simple play of demand and supply and the resultant global implications.

How can crop diversification be encouraged for better agribusinesses?

We can consider the classical example of wheat which is one of the controversial crops and has a surplus production in Punjab, Haryana, Western Uttar Pradesh and some parts in Rajasthan and Madhya Pradesh. The farmers have been growing this in excess for the last 30 years knowing its low profitability in markets. This is because the commission agents are paid around 4-8 per cent interest by the Food Corporation of India (FCI) for procuring wheat and paddy. The farmers can instead grow mustard which is in short supply and can be cultivated under similar climatic conditions as wheat. Its production is far from profitable and hassle-free in terms of less use of water and fertilisers. But crop diversification is completely being overlooked when it is one of the biggest remedies to solve the business woes of agriculture.

To resolve this, the foremost thing is to impart education to farmers to strengthen their business and economies of scale of the country as a whole. Secondly, better coordination between the farmers and the industry is required at large to which no state government is paying any heed. In this respect, the three farm laws were very important for bringing together the farmers and traders to eliminate the role of middlemen and foster better business growth in the long run. Thus, there is a crisis due to complete lack of education and communication wherein farmers need to be particularly taught about the economies of agriculture and not only about the economies of production. These two factors work in tandem with each other and cannot be left in silos.

To read more click on: https://agrospectrumindia.com/e-magazine

In an interaction with AgroSpectrum India, Vijay