Farm Subsidies & Food Security

Model Answer

The ‘One Nation-One Ration Card’ (ONORC) scheme plays a crucial role in ensuring food security for vulnerable populations in India by improving the portability and efficiency of the Public Distribution System (PDS).

Role of ONORC in Ensuring Food Security

Portability of PDS Benefits: ONORC allows over 67 million migrant households to access PDS benefits at any Fair Price Shop (FPS) across the country. This is especially beneficial for migrant workers and their families, who often face difficulty in accessing food entitlements due to migration.

Elimination of Fake & Duplicate Ration Cards: The scheme uses Aadhaar-based biometric authentication, which significantly reduces fraud, duplicate cards, and leakages in the system. This ensures that the rations reach the intended beneficiaries.

Choice and Convenience: Beneficiaries can choose any FPS that suits them, enabling them to avoid corrupt or inefficient dealers. This gives families flexibility and ensures that they can access their entitlements easily.

Mera Ration App: The mobile application allows beneficiaries to register online, check their entitlements, locate nearby FPSs, and verify their Aadhaar seeding status, improving accessibility and transparency.

Challenges to Successful Implementation

Lack of Awareness: Despite the benefits, 20% of eligible households did not know they could use the portability feature. This lack of awareness hampers the full potential of ONORC.

Technical Issues: The scheme relies heavily on technology, and problems like poor internet connectivity, device failure, and glitches in biometric authentication can cause inconvenience. 57% of dealers reported issues like poor connectivity, leading to refusal of service.

Supply Chain Challenges: 32% of PDS dealers reported stockouts, as the portability feature leads to an unpredictable demand at FPSs. This creates challenges in managing the supply of food grains.

Under-coverage and Aadhaar Seeding Issues: The 2011 census for NFSA eligibility excludes many low-income households, while problems with Aadhaar seeding (such as name mismatches) prevent some individuals, especially divorced women, from accessing their rations.

To achieve SDG 2 (Zero Hunger) by 2030, overcoming these challenges is crucial for ensuring the success of ONORC and securing food access for vulnerable populations.

Model Answer

Introduction

Agricultural subsidies are financial aids provided by governments to encourage specific agricultural practices, enhance production, and support the livelihoods of farmers. These subsidies can significantly influence the choices farmers make regarding which crops to grow and how diverse their cropping patterns are. While subsidies are designed to ensure food security and stabilize income, they also have complex effects on crop diversity.

How Subsidies Influence Cropping Patterns and Crop Diversity

Positive Impacts:

• Increased Production and Food Security:
  Subsidies for key crops like rice and wheat in India have contributed to higher production levels, which in turn improve food security. For example, the Minimum Support Price (MSP) for wheat and rice ensures that farmers are guaranteed a fixed price, encouraging them to grow these crops.
• Income Stability:
  Subsidies provide financial stability to farmers, especially during periods of market price fluctuations. The MSP system, for instance, helps farmers by ensuring they receive a minimum price, which protects them against low market prices.
• Encouraging Risk Management:
  Some subsidies help reduce the risks associated with farming by offering financial support for risky ventures. For example, subsidies on crop insurance premiums enable farmers to protect their crops against unforeseen events like droughts or pest infestations, encouraging them to diversify into higher-risk, potentially higher-reward crops.
• Crop Rotation and Diversification:
  Certain subsidies encourage farmers to adopt crop rotation or mixed cropping practices. For example, subsidies for micro-irrigation promote the efficient use of water throughout the year, making it easier for farmers to rotate crops or grow a variety of crops, enhancing diversity in agricultural production.
• Income Support Programs:
  Programs like PM-KISAN, which provide direct income support to farmers, allow them to experiment with different crops and adapt to changing market conditions. This financial cushion allows them to explore diverse cropping options without fearing financial ruin.

Negative Impacts:

• Promotion of Monoculture:
  While subsidies aim to ensure food security, they often target specific crops, which may lead to monoculture practices. In India, for example, rice and wheat, which receive heavy subsidies, occupy nearly 42% of the total cropped area. This over-reliance on a few crops can reduce biodiversity and make farmers vulnerable to market price changes.
• Neglect of Non-Subsidized Crops:
  The emphasis on subsidized crops often leads to a neglect of non-subsidized or traditional crops. This can result in a reduction in the variety of crops grown in a region, as farmers focus on growing the subsidized crops that offer guaranteed financial returns.
• Overuse of Inputs:
  Input subsidies, such as those on fertilizers and pesticides, encourage excessive use of these chemicals, which can have negative environmental impacts. In Punjab, India, for example, the Green Revolution, which relied heavily on subsidized fertilizers and irrigation, resulted in ecological imbalances, such as water depletion and soil degradation.
• Market Distortions:
  Subsidies can distort domestic markets by making certain crops artificially more profitable than others. This can lead to inefficient cropping decisions and market imbalances. For example, the subsidy-driven focus on wheat and rice has sometimes reduced the incentive for farmers to grow other essential but non-subsidized crops, such as pulses or oilseeds.
• Environmental Concerns:
  Some subsidies promote practices that lead to environmental degradation. The MSP for rice, for instance, encourages excessive water use, especially in water-scarce regions like Punjab, leading to falling groundwater levels and environmental strain.