SCHEME TO INCENTIVISE STATES FOR AGRI REFORMS
Source: IndianExpress
Disclaimer: Copyright infringement not intended.
Context
- The Centre's consideration of a new Rs 50,000-crore scheme to incentivize states for agricultural reforms highlights a significant step towards revitalizing the sector.
- This scheme is designed to encourage states to adopt reforms in areas such as agriculture marketing, contract farming, and land leasing, which were initially proposed by the 15th Finance Commission.
Details
Key Elements of the Scheme
- Incentivizing States for Reforms:
- The scheme will provide central funding to states that implement specified agricultural reforms.
- These reforms include measures related to agriculture marketing, contract farming, and land leasing.
- Historical Context:
- This proposal comes three years after the repeal of the controversial farm laws in November 2021.
- The new initiative aims to address regulatory and institutional reforms as part of India's 'Amrit Kaal', a 25-year period from 2022 to 2047.
- NITI Aayog’s Role:
- The scheme was presented by NITI Aayog to the Prime Minister's Office as part of a broader economic strategy.
- It draws inspiration from the 15th Finance Commission’s recommendations for performance-based incentives for states.
- Finance Commission’s Recommendations:
- The 15th Finance Commission suggested incentivizing states to implement the Model Agricultural Produce and Livestock Marketing Act (2017), the Model Agricultural Produce and Livestock Contract Farming Act (2018), and the Model Agricultural Land Leasing Act (2016).
- Although two of these Acts were enacted in 2020, the land leasing reforms remain a priority.
- Focus Areas for Incentives: The proposed scheme will focus on land lease reforms, sustainable water use, export promotion, and contributions towards Atmanirbhar Bharat (self-reliant India).
- Financial Allocation: The scheme proposes Rs 50,000 crore for incentivizing states over the implementation period.
Contract Farming
Must Read Articles:
Status of Agriculture in India
Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017Purpose: Key Features: Unified Market: Establishes a unified national market for agricultural produce and livestock. Private Market Establishment: Allows private individuals or companies to set up and operate their own markets. E-Trading: Promotes e-trading and direct marketing of agricultural produce. Regulation Simplification: Simplifies regulations to encourage competition and reduce market intermediaries. Farmer Empowerment: Empowers farmers by providing more marketing channels to sell their produce. Implementing Agency: Model Agricultural Produce and Livestock Contract Farming and Services (Promotion and Facilitation) Act, 2018Purpose: Key Features: Contract Farming Agreement: Outlines clear guidelines for drafting and registering contract farming agreements. Dispute Resolution: Establishes a structured process for resolving disputes arising from contract farming agreements. Fair Practices: Ensures fair practices and protects the interests of farmers. Price Assurance: Provides mechanisms for price assurance to farmers under contract farming. Support Services: Facilitates provision of inputs and technical advice to farmers by the contracting party. Implementing Agency: Model Agricultural Land Leasing Act, 2016Purpose: Key Features: Legal Framework: Provides a legal framework for leasing agricultural land, ensuring security of tenure for tenants. Flexible Leasing: Encourages flexible leasing arrangements, including short-term and long-term leases. Tenant Rights: Protects the rights of tenants, ensuring they can access institutional credit and government benefits. Dispute Resolution: Establishes a mechanism for resolving disputes between landowners and tenants. Promotion of Investment: Encourages investment in agriculture by providing clarity and security in land leasing. Implementing Agency: |
Implications
- Agricultural Marketing: Reforms in this area aim to create a more liberalized market environment, allowing farmers to sell their produce more freely and potentially increasing their income.
- Contract Farming: Encouraging contract farming can provide farmers with more stable and predictable income sources through agreements with buyers.
- Land Leasing: Reforms in land leasing can improve land utilization and access for small and marginal farmers, fostering better productivity and investment in agriculture.
Various Agricultural Schemes, Policies, And Acts In India As Of 2024
|
Scheme/Policy/Act |
Description |
Key Features |
|
Pradhan Mantri Fasal Bima Yojana (PMFBY) |
Crop insurance scheme |
Provides financial support to farmers suffering crop loss/damage |
|
Pradhan Mantri Krishi Sinchai Yojana (PMKSY) |
Irrigation scheme |
Aims to expand cultivable area under assured irrigation, improve on-farm water use efficiency |
|
National Food Security Mission (NFSM) |
Food security initiative |
Focuses on increasing production of rice, wheat, pulses, coarse cereals, and commercial crops |
|
Soil Health Card Scheme |
Soil health management |
Provides soil health cards to farmers for better nutrient management |
|
Paramparagat Krishi Vikas Yojana (PKVY) |
Organic farming promotion |
Encourages organic farming through the adoption of organic village clusters |
|
Rashtriya Krishi Vikas Yojana (RKVY) |
Agriculture development |
Aims to incentivize states to increase public investment in agriculture and allied sectors |
|
National Agriculture Market (e-NAM) |
Agricultural market reform |
Creates a unified national market for agricultural commodities |
|
Kisan Credit Card (KCC) |
Credit support |
Provides timely credit support to farmers for their cultivation and other needs |
|
National Mission on Sustainable Agriculture (NMSA) |
Sustainable agriculture |
Promotes sustainable agriculture through climate change adaptation measures |
|
Integrated Scheme for Agricultural Marketing (ISAM) |
Market infrastructure |
Supports state governments in creating and improving market structures |
|
Mission for Integrated Development of Horticulture (MIDH) |
Horticulture development |
Promotes holistic growth of horticulture sector |
|
National Bamboo Mission (NBM) |
Bamboo sector development |
Focuses on the development of the complete value chain of the bamboo sector |
|
Sub-Mission on Agricultural Mechanization (SMAM) |
Mechanization of agriculture |
Promotes agricultural mechanization to improve efficiency |
|
National Mission on Oilseeds and Oil Palm (NMOOP) |
Oilseed production |
Enhances oilseeds and oil palm production |
|
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) |
Income support to farmers |
Provides income support to farmers through direct transfers |
|
Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) |
Price support scheme |
Ensures remunerative prices to farmers for their produce |
|
Agricultural Produce Market Committee (APMC) Act |
Agricultural marketing |
Regulates the sale of agricultural produce to ensure fair prices |
|
Essential Commodities Act |
Price control |
Controls production, supply, and distribution of essential commodities |
|
Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 |
Agricultural trade |
Allows farmers to sell their produce outside the APMC mandis |
|
Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 |
Contract farming |
Provides a framework for contract farming agreements |
|
Model Agricultural Land Leasing Act, 2016 |
Land leasing |
Encourages the leasing of agricultural land to improve productivity |
Sources:
|
PRACTICE QUESTION Q: Consider the following statements regarding agricultural reforms in India:
Which of the statements given above is/are correct? a) 1 and 2 only Answer: d) |
1.png)
