Академический Документы
Профессиональный Документы
Культура Документы
Agriculture engages almost half of Indias workforce and, supports around 60 % of its
population. 2015 hasnt been a great year based on the agriculture-front with the rain
deficit at (-14%), made worse with frequent droughts and lowered level of water stored.
Thus, policymakers need to interrogate into the policies that are hampering the transition
from a poverty-struck farm sector to an affluent class of food providers that can chart the
development path of the country.
Policy Tools
Agricultural Credit: India has a dense network of rural financial institutions and Government
with the objective of providing adequate credit to the agriculture sector framed rules stipulating
that some percentage of each banks net credit should be given to the agriculture sector. But
Therefore, procedures should be simplified and proper facilitation of funds should be provided
for mitigating their losses in a bad agricultural year.
Input subsidies: Important subsidies for inputs to the agriculture sector are with respect to
fertilizers; power; irrigation; credit; and agricultural price guarantees.
Crop Insurance: Area yieldbased crop insurance and Weather-based crop insurance can go a
long way in securing risk-free steps to be taken by the farmer. But the success depends upon:
1. The product design;
2. Steps taken to minimize the base risk;
3. Adoption of reliable and sustainable pricing mechanisms
A sparse network of weather stations and the lack of high quality weather data for
locations smaller than the district level;
Limited scope of weather insurance compared to the all risk nature of area yield
insurance, etc.
Location specific support: Depending upon the geographic area and factors such as the
land size, soil quality, water availability
Farm Income Insurance Scheme (FIIS):Aims to ensure guaranteed income by insuring the
difference between the farmers predicted income and the actual income and any decrease in the
predicted income due to yield fluctuations or market fluctuations is insured under the scheme.
Considering yield losses only from natural perilsFarmers are incentivised to produce
more + Inefficiency in farming is not rewarded
Leveraging mobile phone penetration levels and ICT Ensure the availability of real time
data
Streamlining initiatives:
o
Rationalising fertilizer and water usage by insuring only the efficient cost of
production
IASbabas Views:
Consists of impetus to
There should take place a reduction in the number of people dependent upon agriculture,
and improvement in the productivity of agriculture through technology and partnerships
is a must. Rural education, provision of jobs to rural youths with other sectors and
expanding per capita farm holdings is a positive way ahead.
A major limitation has been the supply-driven nature of the government interventions,
which has overlooked the need for building a commensurate social and economic
infrastructure so that the target beneficiaries are equipped to take advantage of these
interventions. Greater representation of relevant stakeholders in the design,
implementation and evaluation of these measures can ensure the more effective inclusion
of farmers demands and a higher level of responsiveness, in turn.