Model Answer

Introduction

PM-KISAN, launched on 24th February 2019, is a Central Sector Scheme aimed at providing financial assistance to landholding farmers. The scheme offers an annual financial benefit of Rs 6,000, paid in three equal instalments, directly transferred to farmers’ bank accounts through Direct Benefit Transfer (DBT). It has been a crucial intervention in addressing agrarian concerns and fostering rural growth.

PM-KISAN’s Role in Addressing Agrarian Concerns

1. Income Stability
   • The Rs 6,000 annual payment provides a stable source of income, helping farmers manage fluctuations in their income caused by unpredictable weather and volatile market conditions.
   • Example: During periods of drought or crop failure, this assistance offers crucial financial relief to small and marginal farmers.
2. Debt Relief
   • Many farmers use the PM-KISAN funds to pay off small debts, thereby reducing their financial burden and improving their creditworthiness.
   • Illustration: Small farmers have reported lower instances of distress, including a reduction in suicides due to the added financial support.
3. Reducing Input Costs
   • The financial support helps farmers cover essential input costs such as seeds, fertilizers, and pesticides, improving their capacity to manage crops effectively.
   • Example: Farmers can afford better-quality seeds, leading to improved crop yields and productivity.
4. Boosting Agricultural Investment
   • PM-KISAN enables farmers to invest in modern agricultural practices like improved irrigation systems or machinery, enhancing productivity.
   • Illustration: With this financial support, a farmer may purchase drip irrigation systems, reducing water usage and increasing efficiency.

PM-KISAN’s Contribution to Fostering Rural Growth

1. Increased Purchasing Power
   • The scheme directly boosts the purchasing power of farmers, leading to increased demand for goods and services in rural areas.
   • Example: Rural markets see a rise in the sale of consumer goods and farming equipment, stimulating local economies.
2. Investment in Local Businesses
   • The additional disposable income allows farmers to diversify their income by investing in small businesses or other non-agricultural activities, fostering rural entrepreneurship.
   • Illustration: A farmer might open a small shop or invest in a service like mobile repair, creating local jobs.
3. Agricultural Value Addition
   • Farmers with increased incomes are more likely to invest in value-added agricultural products, contributing to rural economic diversification.
   • Example: A farmer may use surplus income to produce and sell processed food items like pickles or jams, increasing profits.

Challenges Facing PM-KISAN

1. Limited Beneficiary Coverage
   • While PM-KISAN targets 125 million small and marginal farming households, only 32% of them (about 40.27 million) have benefited.
2. Insufficient Support Amount
   • The Rs 6,000 annual benefit, though helpful, covers only about a tenth of the production costs per hectare, limiting its effectiveness in solving long-term financial challenges.
3. Exclusion of Tenant Farmers and Landless Laborers
   • PM-KISAN is limited to landholding farmers, excluding tenant farmers, sharecroppers, and landless laborers, who form a large part of the rural population.
4. Market Distortions
   • Some critics argue that without accompanying market reforms, income support schemes like PM-KISAN may distort market incentives, leading to unintended consequences, such as over-reliance on certain crops.
5. Awareness Issues
   • Many eligible farmers are unaware of the scheme or find it difficult to apply.
   • Example: In Bihar, only 41% of farmers surveyed were aware of PM-KISAN.
6. Non-Farmers Benefiting
   • In some cases, non-farmers have wrongly received benefits due to inadequate verification processes.
   • Example: In Uttar Pradesh, over 12,000 non-farmers, including government employees, received PM-KISAN benefits.

Way Forward

• Expanding Beneficiary Criteria: Include tenant farmers and landless laborers to ensure wider coverage.
• Awareness Campaigns: Improve outreach through community meetings and local media to ensure that more eligible farmers are aware of and apply for benefits.
• Digital and Offline Accessibility: Strengthen both online and offline registration processes for easier access, especially in areas with limited digital infrastructure.
• Data Verification: Implement a robust system for regularly verifying and updating beneficiary data to ensure accurate targeting.
• Complementary Reforms: Integrate PM-KISAN with broader agricultural reforms and support measures like market access, crop insurance, and infrastructure improvements.

Model Answer

Introduction

India’s maritime sector plays a crucial role in its economy, with over 95% of trade by volume and 65% by value depending on sea transport. Recent reforms in India’s port sector have boosted its global recognition and operational efficiency. The World Bank’s 2023 Logistics Performance Index (LPI) report highlights India’s impressive progress, with the country moving from 44th to 22nd in the “International Shipments” category since 2014.

Key Reforms in India’s Port Sector

1. Sagarmala Initiative (2015)

• The Sagarmala Initiative was launched to harness India’s extensive coastline and waterways for port-led industrialization.
• Focus Areas:
  • Enhancing port infrastructure and logistics efficiency.
  • Promoting coastal and inland shipping.
  • Optimizing cargo-handling capacity and reducing logistics costs.
• Impact: Sagarmala is transforming ports into hubs of industrial and economic growth, making India more competitive globally.

2. Port Modernization and Expansion

• Substantial investments have been made to modernize and expand existing ports and develop new ones.
• Upgraded Facilities:
  • Ports have been equipped with deeper drafts and better cargo-handling capabilities.
  • For example, the capacity at 12 major Indian ports has grown from 871 million metric tonnes (MMT) in 2015 to 1,617 MMT in 2023.
• These improvements allow ports to handle larger vessels and a wider range of cargo types, contributing to better trade facilitation.

3. Private Sector Participation

• The government has promoted Public-Private Partnerships (PPPs) to enhance efficiency and innovation in port operations.
• Benefits: This has attracted significant investments, improving port infrastructure and management.

4. Liner Shipping Reforms (2016)

• The Liner Shipping Reforms aim to make Indian ports more competitive.
• Achievements:
  • Lower shipping costs.
  • Enhanced turnaround times, with India’s average turnaround time (TRT) of 0.9 days, among the best globally.

5. Green Port Guidelines

• The Harit Sagar Green Port guidelines promote sustainable practices in ports, focusing on environmentally safe operations, which helps in reducing the ecological footprint.

Legislative Changes Supporting Port Reforms

1. Major Port Authorities Act, 2021

• This act grants greater autonomy to major ports, empowering them to operate more efficiently and independently.

2. Marine Aids to Navigation Act, 2021

• Ensures better safety and efficiency in vessel traffic management, aligning with global standards.

3. Indian Vessels Act, 2021

• Standardizes regulations for inland waterways across the country, improving uniformity and operational efficiency.

4. Ease of Doing Business

• The National Logistics Portal (Marine) provides a single-window digital platform for various stakeholders, streamlining the processes involved in cargo services, regulatory compliance, and financial services.
• The Sagar Setu app further enhances the ease of goods movement in ports.

5. Foreign Direct Investment (FDI)

• The government allows 100% FDI in port projects under the automatic route, along with a 10-year tax holiday for port developers, which promotes private investment in port infrastructure.

Future Directions

1. Integrated Connectivity

• There is a need to strengthen the integration of ports with railways, roadways, and inland waterways for seamless cargo movement between ports and hinterlands.

2. Digital Transformation

• Adopting advanced technologies like blockchain, Internet of Things (IoT), and artificial intelligence will streamline port operations, including cargo tracking and documentation processes.

3. Investment Promotion

• The government plans to attract more investments through PPP models and investor-friendly policies.

4. Regional Connectivity

• Promoting transshipment and coastal shipping will enhance India’s regional trade, especially in the Indian Ocean.

5. Safety and Security

• Ensuring strict safety measures and compliance with international standards is essential to prevent accidents and environmental hazards at ports.

Model Answer

Introduction

The Yellow Revolution, also known as the Oilseed Revolution, was a significant transformation in India’s agricultural sector. Launched in 1986, this movement aimed to boost the production of oilseeds, improving the nation’s self-sufficiency in edible oils. It played a vital role in reducing India’s dependence on oilseed imports and enhancing food security.

About the Yellow Revolution

• Origin:
  • The Yellow Revolution began in 1986 under the Oil Technological Mission, continuing until 1987, with a focus on increasing the production of oilseeds.
• Coverage:
  • It focused on major oilseeds such as mustard, soybean, and sunflower.
• Yield Improvement:
  • The revolution introduced high-yielding hybrid varieties of oilseeds, leading to a significant increase in yields. For example, mustard yields increased from around 675 kg per hectare in 1960-61 to over 1,500 kg per hectare in recent years.
• Global Impact:
  • Today, India is the fourth-largest producer of oilseeds globally, accounting for about 20% of the global area and 10% of the total production.

Significance of the Yellow Revolution for India’s Economy:

• Reduced Import Dependence:
  • The increase in domestic production helped reduce India’s reliance on oilseed imports, improving the trade balance and ensuring greater economic stability.
• Rural Employment and Livelihoods:
  • Oilseed cultivation created new job opportunities in rural areas, contributing to livelihood enhancement. Farmers benefitted from increased income through oilseed farming, processing, and marketing.
• Value Addition and Agro-processing:
  • The rise in oilseed production also led to the growth of agro-processing industries, including oil extraction and refining units. This added value to raw oilseeds and generated additional economic returns.
• Boost to Agricultural Productivity:
  • The Yellow Revolution encouraged the adoption of modern farming practices, improved seed varieties, and advanced technology, all of which boosted agricultural productivity.
• Spillover Effects on Other Industries:
  • Oilseeds are not only used in food production but also serve as raw materials for industries like cosmetics, chemicals, soaps, and detergents, contributing to economic growth beyond agriculture.
• Human Capital Development:
  • The increased availability of edible oils improved nutrition across the country, leading to better health outcomes and the development of human capital. For example, per capita edible oil consumption rose from 6.4 kg in 1976 to 15.4 kg by 2013.

Model Answer

Introduction

The Rashtriya Gokul Mission and the National Animal Disease Control Programme (NADCP) are key initiatives launched by the Indian government to improve livestock management and animal health. These programs aim to enhance milk production, conserve indigenous cattle breeds, and control diseases affecting livestock, contributing to sustainable agricultural practices in India.

Rashtriya Gokul Mission (RGM)

Overview: The Rashtriya Gokul Mission, launched in December 2014, focuses on the conservation and development of indigenous bovine breeds. It is designed to improve the productivity of livestock while preserving native cattle species.

Objectives:

• Enhance milk production: The mission aims to increase milk production through the use of advanced breeding technologies.
• Promote breeding with high genetic merit bulls: Focused on improving genetic quality for better productivity.
• Expand Artificial Insemination (AI): The mission aims to strengthen the breeding network and make AI services more accessible to farmers.
• Conserve indigenous breeds: It promotes scientific and holistic methods for the conservation and rearing of indigenous cattle and buffaloes.

Components:

• Gokul Grams: These are centers focused on breeding indigenous cattle to enhance their productivity.
• National Kamdhenu Breeding Centre (NKBC): Aimed at improving the genetic quality of bovine breeds.
• Livelihoods and awareness: Promoting sustainable cattle-based livelihoods and educating farmers about the importance of indigenous cattle.

Significance:

• The mission helps in preserving and developing the native breeds, which are well-adapted to local climates.
• It contributes to increased milk production, improved draught power, and the production of organic manure, benefiting farmers and the rural economy.

National Animal Disease Control Programme (NADCP)

Overview: Launched in 2019, the National Animal Disease Control Programme (NADCP) focuses on controlling two major diseases affecting livestock: Foot and Mouth Disease (FMD) and Brucellosis. The program’s goal is to safeguard animal health and improve livestock productivity.

Objectives:

• Control FMD by 2025: The program aims to vaccinate 100% of cattle, buffalo, sheep, goats, and pigs for FMD by 2025, with a goal of eradicating the disease by 2030.
• Control Brucellosis: The program also targets vaccinating all bovine female calves (4-8 months old) against Brucellosis.

Funding:

• The initiative is fully funded by the central government with a budget of ₹13,343 crore over five years.

Components:

• Mass vaccination campaigns: To vaccinate livestock against FMD and Brucellosis.
• Surveillance and capacity building: Involves monitoring disease outbreaks and training veterinary professionals.
• Awareness and biosecurity: Educating livestock owners and ensuring biosecurity measures are in place.

Significance:

• The program helps reduce economic losses caused by disease outbreaks, increases livestock productivity, and ensures food safety by preventing the spread of infectious diseases.
• It contributes to healthier livestock, which is vital for the dairy and meat industries, improving the income of farmers.

Model Answer

Introduction

Market intelligence in agriculture refers to the process of gathering, analyzing, and interpreting data related to the market conditions of agricultural commodities. This includes information about consumer preferences, supply-demand trends, pricing, and more. It plays a crucial role in helping farmers and other stakeholders make informed decisions, optimize resources, and improve profitability.

Importance of Market Intelligence in Agricultural Marketing

1. Understanding Consumer Preferences

• Market intelligence helps farmers understand what consumers want, allowing them to produce crops that are in high demand.
• For example, if data shows a growing demand for organic products or specific varieties of fruits, farmers can adjust their crop choices to meet these demands, potentially earning higher profits.

2. Price Forecasting

• Real-time data about price trends enables farmers to predict future price changes. This information helps them decide the best time to sell their produce for maximum profit.
• For instance, farmers can wait for peak market prices to sell their crops, increasing their chances of earning more compared to selling during a low price period.

3. Market Expansion

• With the help of market intelligence, farmers can identify new and emerging markets. This can be especially helpful in exploring export opportunities and tapping into untapped local markets.
• For example, information about the increasing demand for Indian spices in international markets could encourage farmers to target those specific markets.

4. Risk Management

• Market intelligence helps farmers anticipate market risks such as price volatility, changing consumer demand, or adverse weather conditions. Early warning systems (EWS) can be set up to inform farmers of these risks.
• This way, farmers can take proactive measures such as adjusting their production or hedging against price fluctuations.

5. Efficient Resource Allocation

• By understanding which crops are in high demand, farmers can allocate resources more efficiently. For example, they may choose to invest more in crops that have a higher return on investment, reducing wastage and maximizing productivity.
• This could include focusing on crops that are forecasted to be profitable, based on current and future market conditions.

6. Value Addition

• Market intelligence can help farmers find opportunities for value addition, such as processing, packaging, or branding their products. This can increase the product’s appeal and open new revenue streams.
• For instance, farmers may learn through market intelligence that consumers prefer packaged pulses or pre-cut vegetables, allowing them to add value to their produce.

7. Policy Formulation

• Governments can use market intelligence to design better policies that support the agricultural sector. Insights into market trends and gaps help in stabilizing prices and ensuring food security.
• For example, if there is a consistent gap in the supply of a certain crop, the government might introduce subsidies or incentives to encourage its production.

Examples:

• Farmer Producer Organizations (FPOs) in India use market intelligence to collectively negotiate better prices for their members. By pooling information, these organizations ensure that farmers get fair deals and better income.
• Agri-tech platforms like AgriBazaar and AgroStar provide real-time market information to farmers, helping them make timely decisions about where and when to sell their produce.
• Fairtrade International connects farmers with ethical consumers using market intelligence, helping them access better markets for their produce.

Limitations of Market Intelligence:

1. Cost and Resource Constraints:
   • Small-scale farmers may not have the financial resources to invest in advanced market intelligence tools, limiting their access to important information.
2. Access Barriers:
   • Farmers, especially in rural areas, may face technological or educational barriers that prevent them from accessing market data and analysis.
3. Data Accuracy and Timeliness:
   • Inaccurate or outdated data can lead to poor decision-making. It’s crucial that the data gathered is both accurate and up-to-date to avoid errors in judgment.
4. Data Collection Challenges:
   • Collecting reliable data in remote areas with limited infrastructure can be difficult. This can result in gaps in the information or biased results that don’t reflect the true market scenario.