Agriculture

From the mid-1950s to the mid-1960s, India faced a significant food crisis driven by a mismatch between food grain production and population growth. Between 1951 and 1966, while food grain production grew at 2.8% per annum, it failed to keep pace with a population growth rate exceeding 2% per annum. This led India to increasingly depend on food grain imports. In 1956, India entered into the Public Law (PL) 480 agreement with the United States, primarily to receive food aid in the form of wheat. The situation worsened due to external conflicts (wars with China in 1962 and Pakistan in 1965) which diverted resources from rural investments. Compounding this, two consecutive droughts in 1965 and 1966 caused an unprecedented food crisis, with food grain production and yield declining significantly in 1966. The reliance on foreign food aid also carried political risks. During the Cold War, food aid was sometimes used by donor countries to exert influence. India experienced this when US shipments were abruptly halted for 48 hours during the peak of the drought. This incident highlighted the political vulnerability of depending on external sources for food security, prompting Indian leaders to resolve to achieve self-sufficiency in food grain production. This resolve was a key factor leading to the Green Revolution.

**Income Support** is a mechanism where the government directly transfers a certain amount of money to individuals, allowing them the freedom to decide how to spend it, without requiring the purchase or sale of specific items. This approach, unlike price subsidies or Direct Benefit Transfer (DBT) for specific goods, does not distort the market. Income support can be targeted to a specific class of the population, such as farmers (e.g., PM-KISAN), or extended universally (Universal Basic Income). **PM-KISAN (Pradhan Mantri Kisan Samman Nidhi):** - Effective from: **1 December 2018** - Type: **Central Sector Scheme** with **100% funding** from Government of India - Income support: **Rs. 6,000 per year** to all eligible farmer families - Payment structure: **3 equal instalments of Rs. 2,000 every 4 months** - Mode of payment: Direct Bank Transfer (DBT) - Definition of "family": Husband, wife, and minor children - Beneficiary identification: Responsibility of **State/UT Governments** (not Central government) - Registration: Through local patwari / revenue officer / Nodal Officer (PM-Kisan) nominated by state government - Common Service Centres (CSCs): Authorized to do registration upon payment of fees **Exclusions from PM-KISAN:** - Employees of Central and State Government - PSU employees - Pensioners **Advantages of PM-KISAN (income support model) over MSP/Input Subsidies:** - Not linked to production of any particular crop — incentivizes crop diversification - Whether a farmer produces any agricultural output or not, he still gets the benefit - Less distortionary — does not cause cropping pattern imbalances (unlike MSP for wheat/rice) - Less inflationary than MSP-based procurement - Does not degrade soil quality or water tables (unlike Punjab's wheat-rice monoculture driven by MSP) - Does not deter private investment (unlike market-restricting MSP) - Income support is generally **not regressive**, **not distortive**, and experiences **no leakage**, making it an effective anti-poverty program. **PM-KISAN vs MSP — Why Income Support is Better:** - The best way is to give income support (PM-KISAN) and remove input subsidies, allowing farmers to produce as per market demand - This resolves: crop diversification issues, environment degradation, soil problems, water problem - MSP-based procurement leads to surplus of certain crops and market distortions **Farmers Producer Organizations (FPOs):** - Central Scheme: "Formation and Promotion of **10,000 FPOs**" — budget Rs. 6,865 crore - FPO can be a company, cooperative society, trust or other legal entity - Income from agricultural activities through FPO: **Exempt from taxation** - Minimum members for sustainable FPO: **700 to 1,000 active producers** - SFAC (Small Farmers Agribusiness Consortium): Runs Equity Grant Fund (EGF); provides equity equal to shareholders' equity in FPO, subject to cap of **Rs. 10 lakh** - NABARD: Loan to FPO members without collateral up to **Rs. 25,000 per member**; also provides credit for business operations and technical/managerial/financial support - Credit Guarantee Fund: Established by NABARD and NCDC to provide guarantee cover for FPO credit **Agriculture Credit Issues:** - Annual agriculture credit target FY 2023-24: Rs. **20 lakh crore** (through private sector) - Small and marginal farmers (86%) get only **15% of subsidized institutional credit** - Big farmers get **79%** of subsidized credit - RBI target: **18% of total credit** to agriculture (out of 40% priority sector) - Within this: **8%** to small and marginal farmers - Despite credit increase, 95% of tractors/equipment financed indirectly through NBFCs - Subsidized credit at 4-7% is refinanced to small farmers at up to 36%

**Minimum Support Price (MSP):** Government-announced price at which it agrees to procure agricultural produce to ensure farmers get a minimum return. Announced before each sowing season. **Important Clarifications:** - MSP has **NO legal backing** — farmers cannot demand it as a legal right - It is just government policy and an administrative decision - Government CANNOT force private players to procure at MSP - **Agriculture Crop Year:** 1 July – 30 June - Marketing Season of Kharif crops: starts 1 October - Marketing Season of Rabi crops: starts 1 April **Commission for Agricultural Costs and Prices (CACP):** - Recommends MSP to the Ministry of Agriculture - CACP is **NOT a statutory body** — it is an office attached to the Ministry of Agriculture - CACP recommends but the decision to fix (or not fix) MSP lies with the Government - Cabinet Committee on Economic Affairs (CCEA) gives final approval on MSP **Factors CACP considers for MSP recommendations:** 1. Cost of production and margin/profit to farmers 2. Demand and supply 3. Price trends in domestic and international markets 4. Inter-crop price parity 5. Terms of trade between agriculture and non-agriculture 6. Likely implication on consumers **Cost Concepts for MSP:** | Cost Type | Definition | |---|---| | **A2** | All paid-out expenses (seeds, fertilizers, chemicals, hired labour, fuel, irrigation) | | **A2+FL** | A2 + imputed value of unpaid family labour | | **C2** | A2+FL + rentals and interest forgone on owned land and fixed capital assets | - Budget 2018-19 announcement: MSP = at least **50% over A2+FL cost** (NOT C2) - MSP is uniform across all of India for a particular crop **Crops under MSP:** - CACP recommends MSPs for **23 commodities**: - 7 cereals: paddy, wheat, maize, sorghum, pearl millet, barley, ragi - 5 pulses: gram, tur, moong, urad, lentil - 7 oilseeds: groundnut, rapeseed-mustard, soyabean, sesame, sunflower, safflower, nigerseed - 4 commercial crops: copra, sugarcane, cotton, raw jute - **MSP actually declared for 25 crops** (CACP's 23 + toria fixed relative to mustard/rapeseed + de-husked coconut relative to copra) - **Sugarcane** price is called **Fair and Remunerative Price (FRP)** — recommended by Ministry of Consumer Affairs, Food and Public Distribution; some states announce their own **State Advised Price (SAP)** - SAP/FRP enforcement mechanism: **Sugarcane Control Order 1966** under the Essential Commodities Act 1955 **Procurement vs. Price Support:** - Government mostly procures wheat and rice (mostly from Punjab, Haryana, western UP, MP) - Other crops procured include cotton (by Cotton Corporation of India) and pulses (buffer stock) and sugarcane (by sugar mills) - Even though MSP is declared for 25 crops, actual procurement is limited **MSP for Minor Forest Produce (MFP):** - Scheme: "Mechanism for Marketing of MFP through MSP and Development of Value Chain for MFP" — Centrally Sponsored Scheme under Ministry of Tribal Affairs - Reviewed every **3 years** by Pricing Cell under Ministry of Tribal Affairs - Implementing agency: **TRIFED** (Tribal Cooperative Marketing Development Federation of India) as Central Nodal Agency - Funding ratio: **75:25** (Centre:State) - State can fix MSP up to **10% higher or lower** than Central government's MSP **PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan):** - Approved by Union Cabinet in **September 2018** as an umbrella scheme - Three sub-schemes: 1. **Price Support Scheme (PSS):** Physical procurement of pulses, oilseeds and copra by Central Nodal Agencies (NAFED + FCI); states play active role; government bears procurement expenditure and losses 2. **Price Deficiency Payment Scheme (PDPS):** Covers all oilseeds for which MSP is notified; no physical procurement; direct payment of the **difference between MSP and sale/modal price** to pre-registered farmers; payment directly to bank account through DBT 3. **Pilot of Private Procurement & Stockist Scheme (PPSS):** Private agency procures at MSP in notified markets; max service charge up to **15% of notified MSP**; deployed when market price falls below MSP **Issues with MSP:** - Cost-plus pricing ignores demand side (demand-supply, domestic and international price trends) - MSP becomes the base price and causes inflation - Creates distortion in cropping patterns (farmers in Punjab/Haryana over-rely on wheat and rice) - Deterioration in soil quality, water tables (groundwater overuse in Punjab) - Deters fresh private investment in the sector

**Rural development** is a comprehensive term focused on action for development of areas lagging behind in overall development. More than two-thirds of India's population depends on agriculture that is yet to become productive enough to provide for them. One-fourth of rural India still lives in abject poverty. Key areas requiring fresh initiatives: - Development of human resources (literacy, more specifically, female literacy, education and skill development; health, addressing both sanitation and public health) - Land reforms - Development of productive resources of each locality - Infrastructure (electricity, irrigation, credit, marketing, transport facilities including construction of village roads and feeder roads to nearby highways, facilities for agriculture research and extension, and information dissemination) - Alleviation of poverty and improving conditions of weaker sections of the population emphasising access to productive employment opportunities After the initiation of reforms, the growth rate of the agriculture sector decelerated to about 3 per cent per annum during 1991-2012 and became volatile in recent years. In 2023-24, the GVA growth rate of agriculture and its allied sectors was about two per cent. Scholars identify a decline in public investment since 1991, inadequate infrastructure, lack of alternate employment opportunities, and increasing casualisation of employment as major reasons impeding rural development. --- ### Credit in Rural Areas **Institutional rural credit structure (post-independence):** - At independence: moneylenders and traders exploited small and marginal farmers and landless labourers through high interest rates and debt-traps - Major change in 1969: India adopted **social banking and multi-agency approach** for rural credit - Institutions: commercial banks, **regional rural banks (RRBs)**, cooperatives, land development banks **NABARD (National Bank for Agriculture and Rural Development):** - Set up in **1982** as an apex body to coordinate activities of all institutions in the rural financing system - The Green Revolution was a harbinger of changes in the credit system — led to diversification of the portfolio of rural credit towards production-oriented lending **Jan Dhan Yojana (mentioned in NCERT):** All adults are encouraged to open bank accounts as part of Jan Dhan Yojana; account holders can get Rs 1-2 lakh accidental insurance and overdraft facilities for Rs 10,000. Under this scheme, wages for government-related jobs and works under MNREGA (now known as Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission [Gramin] [VB-G RAM G]), old age pensions, and other social security payments are transferred to bank accounts, with no need to keep a minimum bank balance. This has led to more than 50 crore people opening bank accounts, promoting thrift and efficient allocation of financial resources, particularly in rural areas, and enabling banks to mobilise over Rs. 2,00,000 crores. **Critical appraisal of rural banking:** Rapid expansion had positive effects on rural farm and non-farm output, income, and employment, especially after the green revolution, helping farmers avail services and credit facilities. However, agriculture loan default rates have been chronically high. --- ### Self-Help Groups (SHGs) and Micro-Credit **Why SHGs emerged:** - Formal credit delivery mechanism inadequate - Collateral requirements excluded vast proportion of poor rural households from the formal credit network **How SHGs work:** - Promote thrift through small savings by minimum contribution from each member - From pooled money, credit given to needy members at reasonable interest rates, repayable in small instalments **Scale of SHGs:** - By **May 2019: nearly 6 crore women** in India had become members in **54 lakh SHGs** - About Rs 10-15,000 per SHG and Rs 2.5 lakh per SHG as **Community Investment Support Fund (CISF)** are provided as part of a revolving fund to take up self-employment for income generation - Such credit provisions are called **micro-credit programmes** - SHGs have helped in the empowerment of women, though it is alleged that borrowings are mainly confined to consumption purposes. **Kudumbashree (Box 5.1: The Poor Women's Bank):** - Women-oriented community-based poverty reduction programme in **Kerala** - In **1995**, a thrift and credit society started as small savings bank for poor women - Mobilised Rs 1 crore as thrift savings - Acclaimed as the **largest informal banks in Asia** in terms of participation and savings mobilised --- ### Agricultural Marketing System **Problems before reforms:** - Faulty weighing and manipulation of accounts by traders - Farmers who did not have required information on prices were often forced to sell at low prices - No proper storage facilities → more than 10 per cent of goods produced in farms wasted due to lack of storage - Private trade dominated by moneylenders, rural political elites, big merchants and rich farmers **Four policy instruments used:** 1. Regulation of markets to create orderly and transparent marketing conditions. However, there is still a need to develop about 27,000 rural periodic markets as regulated market places. 2. Provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storages and processing units. Current infrastructure is inadequate and needs improvement. 3. Cooperative marketing, aimed at realising fair prices for farmers’ products, though cooperatives have received setbacks due to inadequate coverage of farmer members, lack of appropriate link between marketing and processing cooperatives, and inefficient financial management. 4. Policy instruments like assurance of **minimum support prices (MSP)** for agricultural products, maintenance of **buffer stocks** of wheat and rice by **Food Corporation of India (FCI)**, and distribution of food grains and sugar through **PDS (Public Distribution System)**. **Emerging Alternate Marketing Channels (NCERT examples):** - If farmers directly sell their produce to consumers, it increases their incomes. - **Apni Mandi** — Punjab, Haryana and Rajasthan - **Hadaspar Mandi** — Pune - **Rythu Bazars** — vegetable and fruit markets in Andhra Pradesh and Telangana - **Uzhavar Sandies** — farmers' markets in Tamil Nadu - Several national and multinational fast food chains are increasingly entering into contracts/alliances with farmers to encourage cultivation of desired quality farm products by providing seeds, inputs, and assured procurement at pre-decided prices, aiming to reduce price risks and expand markets. **e-NAM:** In 2016, Union Government launched e-NAM (electronic-National Agriculture Market) — a portal connecting mandis and RMYs (Rural Market Yards) as a Pan-India online portal. *(For detailed APMC reform content, see [[economics/agriculture/apmc-agricultural-marketing.md]])* **Three Farm Laws (2020):** In 2020, Indian Parliament passed three laws to reform the agricultural marketing system. Some farmers supported these reforms; the rest opposed. These Acts were **later repealed**. --- ### Diversification into Productive Activities **Diversification** includes two aspects: 1. Change in cropping pattern 2. Shift of workforce from agriculture to allied activities (livestock, poultry, fisheries) and non-agriculture sector Need for diversification: Agriculture employment concentrated in **Kharif season**; during Rabi season in areas with inadequate irrigation, it becomes difficult to find gainful employment. As agriculture is overcrowded, a major proportion of the increasing labour force needs to find alternate employment opportunities in other non-farm sectors. Dynamic sub-sectors in the non-farm economy include agro-processing industries, food processing industries, leather industry, and tourism. Traditional home-based industries like pottery, crafts, and handlooms have potential but seriously lack infrastructure and other support.

Marketed surplus refers to the portion of agricultural produce that farmers sell in the market. While an increase in agricultural output is important, its impact on the economy as a whole depends significantly on how much of this increased produce is sold in the market rather than consumed by the farmers themselves. If a substantial amount of agricultural produce is converted into marketed surplus, it can significantly benefit the economy. During the Green Revolution period in India, a considerable proportion of the increased production of rice and wheat became marketed surplus. This increase in supply in the market led to a decline in the prices of food grains relative to other consumer items. This decline in relative prices particularly benefited low-income groups, who typically allocate a large percentage of their income to food. Furthermore, the availability of a substantial marketed surplus enabled the government to procure sufficient food grains, allowing it to build up a stock for use during periods of food shortage, thereby enhancing food security.

Custom Hiring Centres (CHCs) are facilities that provide costly, advanced, and larger farm machinery, implements, and equipment on a rental basis to farmers. These centres are specifically designed to cater to the needs of small and marginal farmers who typically cannot afford to purchase such high-end agricultural machinery themselves. The equipment available at CHCs covers various agricultural operations, including tillage, sowing, planting, harvesting, reaping, threshing, plant protection, inter cultivation, and residue management. CHCs are an institutional arrangement promoted under the Sub-Mission on Agricultural Mechanization (SMAM), which itself is a component of the National Mission on Agricultural Extension & Technology (NMAET). The objective behind establishing CHCs under SMAM is to offset the adverse economies of scale and the high cost associated with individual ownership of farm power, particularly in regions where the availability of farm power is low. The government supports the establishment of these centres by providing funds and subsidies to rural entrepreneurs, Self-Help Groups (SHGs), and groups of farmers.

Agriculture is identified as a critically important sector for the Indian economy, especially regarding poverty alleviation, employment generation, and its contribution to the Gross Domestic Product (GDP). Historically, agriculture's share in the national GDP has significantly declined from over 50% in 1950-51 to 16% in 2019-20, while its share in employment also decreased from 70% in 1950-51 to around 42%. Despite this decline, growth in agriculture is considered a necessary condition for 'inclusive growth' in India. Research indicates that GDP growth originating in agriculture is at least twice as effective in reducing poverty compared to growth from outside agriculture. The sector supports a large number of land holdings, predominantly small and marginal farmers (86% of total holdings operating on 47% of the total agricultural area), and engages a significant portion of the rural female workforce. Over the years, India has transitioned from being reliant on food imports in the mid-1950s and 1960s, a period marked by food crises and foreign aid dependencies, to achieving self-sufficiency in food grain production through initiatives like the Green Revolution. This transformation has also positioned India as a major global producer and exporter of various agricultural commodities, showcasing a significant role in global food security and trade.

**Agriculture Produce and Marketing Committee (APMC) Acts:** - Agricultural markets in most states are established and regulated under **State APMC Acts** - Each state is divided into market areas/mandis managed by a **Market Committee** (constituted by state government) - Once an area is declared a market area under a Market Committee's jurisdiction, no person or agency is allowed to freely conduct wholesale marketing activities outside that market. - First sale of agricultural commodities (such as cereals, pulses, edible oilseed, fruits and vegetables, and even chicken, goat, sheep, sugar, fish) can only happen at an APMC through **licensed commission agents** (arhatiyas) - Wholesalers, retailers (e.g., Reliance Fresh), food processing companies cannot purchase directly from farmers — must go through mandis **Salient Features of APMC Act:** - Traders need a license to operate in a mandi (requires shop or warehouse in the mandi) - Price discovered through **auctioning** at the mandi **Problems with APMC Acts:** - Prevents direct sale from farmers to buyers (retail chains, food processors) - Different states levy different mandi charges — creates market distortion and cascading effect on prices - Mandis within a state are NOT integrated; separate licenses required for each mandi - Traders form **cartels** and collectively keep prices low (hurting farmers) - Corruption in license procurement (requires bribes) - Farmers don't benefit from high consumer prices and don't get protected from low prices in peak season **Central Government Reforms:** **Model APMC Act 2003:** Proposed by Centre; allowed contract farming and direct transactions between organized private sector and farmers. States were not keen to adopt. **Model Agri Produce and Livestock Marketing Act 2017:** - Released by Centre on **25 April 2017**; replaces earlier 2003 model - Key features: - Private wholesale markets allowed - Direct sale by farmers to bulk buyers permitted - Godowns, warehouses, cold storages can act as regulated markets - **Single licence** and single point of levy of market fee at State level (moving toward national level) - Cap on market fees: **2% of sale price for fruits/vegetables; 1% for food grains** - Inter-State trading licence proposed - This Act is **NOT binding on states** — states must voluntarily adopt it **PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan):** - Approved by the Union Cabinet in **September 2018**. - Aimed at ensuring remunerative prices for farmers' produce, as announced in the Union Budget for 2019. - Comprises three sub-schemes: - **Price Support Scheme (PSS):** Involves physical procurement of pulses, oilseeds, and copra by Central Nodal Agencies (like NAFED and FCI) with state government involvement. Procurement expenditure and losses are borne by the Central Government. - **Price Deficiency Payment Scheme (PDPS):** Proposed to cover all notified oilseeds. Farmers receive direct payment of the difference between the Minimum Support Price (MSP) and the selling/modal price when selling produce in a notified market yard through a transparent auction. Payments are direct to the farmer's bank account, and this scheme does not involve physical procurement of crops. - **Pilot of Private Procurement & Stockist Scheme (PPSS):** Allows a private agency to procure commodities at MSP in notified markets during a notified period from registered farmers, when prices fall below MSP and authorized by the state/UT government. A maximum service charge of up to 15% of the notified MSP is payable. **e-NAM (Electronic — National Agriculture Market):** - Launched: **April 2016** by Ministry of Agriculture - Not a parallel marketing structure — an **online platform with physical mandis at the backend** - Creates a national network of physical mandis accessible online - Implemented by: **SFAC (Small Farmers Agribusiness Consortium)** — autonomous organization under Dept. of Agriculture and Cooperation (DAC) - Plan: Connect all **2,500 APMC mandis** across India - Farmer brings produce to APMC mandi/FPO collection centre/WDRA registered warehouse → traders from all over India bid → highest bidder gets the produce - Payment in farmer's bank account first, then trader can take physical produce - Transport charges: on trader's account **Challenges of e-NAM:** - Traders resistant to moving online (have been transacting physically in cash) - Quality verification — traders want to physically inspect produce - Storage capacity issues in mandis - As of data in book: Less than **5% of wholesale trade** in farm commodities shifted online; inter-mandi/inter-State e-NAM trade is "a non-starter" **Farmers Producer Organization (FPO):** - An institutional mechanism designed to overcome disadvantages faced by marginal and small farmers (scale, uneconomic lot for marketing, price risk, bargaining power). - Can be formed as a company, cooperative society, trust, or other legal entity that ensures profit/benefit sharing among farmers. Ownership control always remains with farmer members. - Aims to ensure better income for farmers through their own organization. - Enables members to achieve economies of scale in input purchase, processing, and marketing, and provides access to credit and market linkages. - Promoted and supported by organizations like Small Farmers Agribusiness Consortium (SFAC), National Co-operative Development Corporation (NCDC), and NABARD. - **SFAC** runs the **Equity Grant Fund (EGF) Scheme**, providing equity equal to shareholders' equity, up to Rs. 10 lakhs per FPO. - **NABARD** and **NCDC** have established a **Credit Guarantee Fund (CGF)** to minimize financial institutions' risk in providing credit to FPOs, thereby accelerating institutional credit flow. - **NABARD** offers collateral-free loans to FPO members for share capital contribution (up to Rs. 25,000 per member) and provides credit support for business operations, along with technical, managerial, and financial support for capacity building and market intervention. - The Indian Council of Agricultural Research (ICAR) provides technical support to FPOs through Krishi Vigyan Kendras (KVKs). - Studies suggest an FPO requires 700 to 1000 active producer/farmer members for sustainable operation. - FPOs undertake activities across the value chain, from raw material procurement to final product delivery, including: procurement of inputs, market information dissemination, technology dissemination, facilitating finance, aggregation and storage of produce, primary processing, brand building, packaging, quality control, marketing to institutional buyers, commodity exchange participation, and exports. - Income derived by an FPO from agricultural activities is treated as agricultural income and is exempted from taxation. - The Government of India launched a Central Sector Scheme for the "Formation and Promotion of 10,000 FPOs" with a budgetary provision of Rs 6865 crore. **Contract Farming:** - Agreement between buyer and farmer establishing conditions for production and marketing - Central government proposed Model APMC Act 2003 with provisions for contract farming - Success story: **Poultry sector** (widely successful) - Failures: High transaction costs with large numbers of small/marginal farmers; lack of scale - 86% of land holdings < 2 hectares — very small marketable surplus per farmer - FDI in food retail opened only in **2016** (for companies like Amazon, Tesco)

The White Revolution, spearheaded by Dr. Verghese Kurien (known as the "milkman of India"), transformed India's dairy sector by establishing a cooperative model for milk production and distribution. This movement was inspired by the work of Tribhuvandas Patel on cooperative movements in Gujarat. Dr. Kurien started his professional career in Anand in 1949, where he witnessed the exploitation of poor and illiterate farmers by milk distributors. His efforts, alongside Patel, led to the establishment of "Amul" (Kaira District Cooperative Milk Producer’s Union Ltd.) in 1949, initially a small cooperative. Impressed by Amul's success, Prime Minister Lal Bahadur Shastri invited Dr. Kurien to replicate this model nationwide. This led to the formation of the National Dairy Development Board (NDDB) in 1965, with Dr. Kurien at its helm. In 1969, NDDB secured a loan from the World Bank to launch "Operation Flood," a programme designed to extend the Anand project's cooperative framework across India. The primary objectives of Operation Flood were to significantly increase milk production, augment rural incomes for farmers, and ensure reasonable prices for consumers. Operation Flood's business model was based on a three-tier structure: Village Dairy Cooperative Societies (DCS) for milk collection, District Cooperative Milk Producers' Unions for processing and marketing, and State Marketing Federations for broader marketing efforts. This cooperative movement led to India emerging as the world's largest milk-producing country, with milk production growing from 20 million MT to 100 million MT in 40 years, reaching 210 MT in 2020-21, and spreading across over 125,000 villages in 22 states.

A Sustainable Food System (SFS) is defined as a food system capable of delivering food security and nutrition for all, in a manner that does not compromise the economic, social, and environmental foundations for generating food security and nutrition for future generations. Food systems broadly encompass all actors and their interconnected value-adding activities involved in the production, aggregation, processing, distribution, consumption, and disposal of food products originating from agriculture, forestry, or fisheries. These systems are embedded within broader economic, societal, and natural environments. They comprise sub-systems like farming, waste management, and input supply, and interact with other key systems such as energy, trade, and health. Consequently, changes in other systems, like a policy promoting more biofuel, can significantly impact the food system. To be considered sustainable, a food system must exhibit three key dimensions of sustainability: 1. **Economic Sustainability:** It must generate benefits or economic value-added for all stakeholders, including wages for workers, taxes for governments, profits for enterprises, and improved food supply for consumers. 2. **Social Sustainability:** It requires equity in the distribution of economic value-added, especially considering vulnerable groups defined by gender, age, or race. Food system activities should also advance important socio-cultural outcomes like nutrition and health. 3. **Environmental Sustainability:** It ensures that the impacts of food system activities on the natural environment are neutral or positive, taking into account biodiversity, water, soil, animal and plant health, carbon footprint, water footprint, food loss and waste, and toxicity. Sustainable Food Systems are central to the United Nations’ Sustainable Development Goals (SDGs), which aim for major transformations in agriculture and food systems to end hunger, achieve food security, and improve nutrition by 2030.

Animal Husbandry constitutes a significant and rapidly growing segment of India's agricultural sector, playing a vital role in the rural economy. It contributes substantially to the nation's GDP and is considered an engine of growth for Indian agriculture. Farmers in India often practice a mixed farming system, integrating crop cultivation with livestock rearing, which enhances resource efficiency as the output of one enterprise can serve as an input for another. This sector is particularly crucial for small and marginal farmers, especially in rain-fed regions, acting as a key livelihood and risk mitigation strategy. Livestock provides multiple benefits to farmers, including subsidiary income through the sale of milk, meat, and eggs, which are also important sources of animal protein. It offers employment, particularly during lean agricultural seasons, and serves as a form of social security and an asset during emergencies. Historically, animals have also provided draught power for agricultural operations and transportation, and their dung has been utilized as fuel and fertilizer. However, the utility of livestock is transforming, with a decline in non-food functions due to agricultural mechanization and the rising demand for animal food products driven by economic growth, urbanization, and changing lifestyles. Despite its importance, the livestock sector faces challenges such as inadequate veterinary facilities, poor market linkages for smallholders, and a lack of insurance and credit. To address these, the Indian government launched initiatives like the National Livestock Mission in 2014-15, focusing on sustainable growth, improved feed and fodder availability, risk coverage, and enhanced credit flow. The creation of a dedicated Ministry of Fisheries, Animal Husbandry and Dairying further underscores the government's emphasis on this sector.

The Green Revolution was introduced in Pakistan as part of its economic policies, particularly during the late 1950s and 1960s. This initiative brought about significant changes in the agricultural sector. Its implementation led to the mechanisation of farming practices and an increase in public investment directed towards infrastructure, specifically in selected areas. A direct consequence of these measures was a notable rise in the production of foodgrains. Overall, the introduction of the Green Revolution dramatically altered Pakistan's agrarian structure.

Food Systems (FS) encompass the complete range of actors and their interconnected value-adding activities involved in the entire journey of food products. This includes production, aggregation, processing, distribution, consumption, and disposal of food originating from agriculture, forestry, or fisheries. These systems are embedded within broader economic, societal, and natural environments. A food system is made up of various sub-systems, such as farming systems, waste management systems, and input supply systems, and it interacts with other crucial systems like energy, trade, and health. Consequently, a structural change in another system, for instance, a policy promoting biofuel in the energy system, can significantly impact the food system. A Sustainable Food System (SFS) is defined as one that ensures food security and nutrition for all, without compromising the economic, social, and environmental foundations necessary to generate food security and nutrition for future generations. Economic sustainability requires generating benefits for all stakeholders, including wages for workers, taxes for governments, profits for enterprises, and improved food supply for consumers. Social sustainability is achieved when there is equity in the distribution of economic value-added, especially considering vulnerable groups, and when food system activities contribute positively to socio-cultural outcomes like nutrition and health. Environmental sustainability demands that the impacts of food system activities on the natural environment are neutral or positive, considering factors like biodiversity, water, soil, animal and plant health, carbon footprint, water footprint, food loss and waste, and toxicity. Sustainable food systems are central to the United Nations' Sustainable Development Goals (SDGs), which call for major transformations in agriculture and food systems to end hunger, achieve food security, and improve nutrition by 2030.

The **Green Revolution** refers to the renovation of agricultural practices beginning in Mexico in the 1940s. Attributed to **Norman Borlaug** (American scientist) who developed disease-resistant HYV wheat. The introduction of **High Yielding Variety (HYV) seeds, fertilizers, pesticides, better irrigation, mechanized equipment and modern agricultural techniques** is collectively called the Green Revolution. **"Father of Green Revolution in India":** M.S. Swaminathan **Historical Context:** - Between 1951-1966: Food grain production grew at **2.8% per annum** — failed to keep up with population growth (>2% p.a.) - From mid-1950s: India relied on food grain imports - **1956:** India signed **Public Law (PL) 480** agreement with USA to receive food aid (mostly wheat) - 1962 (China war) + 1965 (Pakistan war) + Droughts of 1965 and 1966 → unprecedented food crisis - 1966: Food grain production and yield declined by **19% and 17%** respectively - India resolved to achieve self-sufficiency after US abruptly stopped food shipments for 48 hours during drought - At independence, about 75% of India's population was dependent on agriculture, with very low productivity due to old technology and lack of infrastructure. India's agriculture also vitally depends on the monsoon. The Green Revolution permanently broke the stagnation in agriculture during the colonial rule. **Three Phases of Green Revolution in India:** | Phase | Period | Key Development | |---|---|---| | Phase I | 1966–72 | India imported **18,000 tonnes of HYV wheat seeds**; distributed in irrigated Punjab, Haryana, western UP. This phase was restricted to affluent states like Punjab, Andhra Pradesh, and Tamil Nadu, primarily benefiting wheat-growing regions. | | Phase II | 1973–80 | Extension from wheat to **rice**; spread to eastern UP, Andhra Pradesh, coastal Karnataka, Tamil Nadu; growth of tube wells. HYV technology spread to a larger number of states and benefited a wider variety of crops. | | Phase III | 1981–90 | Spread to eastern region — West Bengal, Bihar, Assam, Odisha | **Food Grain Production Milestones:** | Year | Production (MT) | |---|---| | 1950-51 | 51 | | 1966-67 | 74 | | 1971-72 | 105 | | 2000-01 | 197 | | 2013-14 | 265 | | 2022-23 | 324 | - India became **self-sufficient** in food grains in **1971-72** (imports declined to nearly zero), and by the late 1960s, agricultural productivity had increased sufficiently to enable this self-sufficiency. - Horticulture production surpassed food grains: ~342 MT (2022-23) vs 324 MT - The Green Revolution led to a substantial increase in **marketed surplus** (agricultural produce sold by farmers), which caused a decline in food grain prices benefiting low-income groups. It also enabled the government to build food grain stocks for shortages. **White Revolution (Operation Flood):** - Dr. Verghese Kurien — "Milkman of India"; came to Anand in 1949 - **Amul** established in **1949** (Kaira District Cooperative Milk Producers' Union Ltd. — KDCMPUL) - Inspired by leader **Tribhuvandas Patel** (cooperative movement) - PM Lal Bahadur Shastri visited Anand in **1964** and asked Kurien to replicate the model - **National Dairy Development Board (NDDB)** formed in **1965**; Kurien made in-charge - **1969**: NDDB approached World Bank; got loan for **Operation Flood** - **Three-tier structure:** Village Cooperative Society → District Cooperative Milk Producers' Union → State Marketing Federation - Milk production grew from **20 million MT to 100 million MT** in 40 years; India is now world's largest milk producer (210 MT in 2020-21) - Dairy cooperatives spread to **125,000+ villages across 180 districts in 22 states** **Pink Revolution:** - Refers to modernization of **meat and poultry** processing sector - India became the **largest exporter of buffalo meat** in 2012 (approx. 1.5 million MT beef) - UN FAO outlined 4 steps: state-of-art meat processing plants; technologies for male buffalo calves; contractual farming; disease-free zones **India's Position in Agriculture (Global):** - Largest producer: Milk - Second largest producer: Rice, wheat, sugarcane, fruits and vegetables - Largest exporter: Rice - Second largest exporter: Beef (buffalo), cotton - FY 2021-22: Agri-exports = **$50 billion**; agri-imports = **$31 billion** - Agriculture share in GDP: Declined from **50% in 1950-51** to **16% in 2019-20**. However, the proportion of population dependent on agriculture did not decline significantly (67.5% in 1950 to 64.9% by 1990). - Agriculture employment: Declined from **70% in 1950-51** to ~**42%** now (65% in 1990). **Agriculture Census Data (2015-16 — 10th Census):** - Conducted quinquennially by Ministry of Agriculture and Farmers Welfare - First agriculture census: **1970-71** - 11th Agriculture Census (2021-22): launched **July 2022** - Total operational holdings: **14.65 crore** (increased from 13.84 crore in 2010-11) - Total operated area: **157.82 million ha** (decreased from 159.59 million ha in 2010-11) - Average holding size: **1.08 ha** (2015-16) — down from 1.15 ha (2010-11) - Small & marginal farmers: **86%** of holdings; operate only **47%** of agricultural area - Women in farming: 73.2% of rural women engaged in farming but only **12.8% own landholdings**

Farmers Producer Organizations (FPOs) are institutional mechanisms designed to help marginal and small farmers overcome disadvantages associated with their small scale, such as uneconomic lot sizes for marketing and price risks. These organizations can take various legal forms, including a company, cooperative society, or trust, but always maintain ownership control with their farmer members, with management handled by member representatives. The primary objective of an FPO is to ensure better income for farmers. FPOs achieve this by enabling member farmers to benefit from economies of scale. This includes procuring inputs in bulk at cheaper prices, reducing transportation costs, and aggregating their produce to market it collectively for better prices. They also facilitate access to timely and adequate credit facilities and provide crucial market linkages. Beyond aggregation and marketing, FPOs undertake various activities across the value chain, from raw material procurement to delivering the final product. This includes disseminating market information, technology, and innovations, facilitating finance, primary processing (like drying, cleaning, and grading), brand building, packaging, quality control, and engaging in institutional sales, commodity exchanges, and exports. Income derived by an FPO from agricultural activities is treated as agricultural income and is exempted from taxation. The establishment and promotion of FPOs are supported by entities like the Small Farmers Agribusiness Consortium (SFAC), National Co-operative Development Corporation (NCDC), and NABARD through various schemes, including equity grants, credit guarantee funds, and technical and managerial support. The Indian government has launched a Central Sector Scheme for the formation and promotion of 10,000 new FPOs with a significant budgetary provision to further strengthen this initiative.

**Genetically Modified (GM) Crops:** Plants whose DNA has been modified using genetic engineering. Benefits include higher nutritional value, disease resistance, longer shelf life, higher yields, **resistance to bacteria, virus and other components that can damage the plant, and less costly GM foods.** **Genetic Engineering Appraisal Committee (GEAC):** - Apex body for regulating GM crops - Under: **Ministry of Environment, Forest and Climate Change** - Statutory basis: **Environment Protection Act 1986** - GEAC approval is NOT the final government approval — only a recommendation to Central Government **GM Crops Status in India:** | Crop | Status | |---|---| | **BT Cotton** | Only commercially approved GM crop in India; approved since **2002** | | **BT Brinjal** | Passed field trials; moratorium imposed since **2010** amid civil society protest | | **GM Mustard (DMH-11)** | GEAC recommended environmental release in **October 2022** | **GM Mustard (DMH-11):** - Full name: **Dhara Mustard Hybrid-11** - GEAC approved: October 2022 (first GM food crop to receive GEAC nod) - Yield: **30% higher** than existing varieties - Current average mustard yield: 1,000-1,200 kg/hectare (global average: 2,000-2,200 kg/ha) - Condition: Simultaneous field studies on effect on honeybees and pollinators required with ICAR. **BT Cotton Pricing Controversy:** - Monsanto Mahyco Biotech (India) Ltd., a joint venture between Mahyco Seeds Ltd and Monsanto, licensed its patented Bollgard II cotton seed technology to 50 seed companies, with over 90% of cotton in India using this technology. - March 2016: Government cut Bollgard II price to **Rs. 800 per 450g packet** (from Rs. 830-1,000) - Royalty (trait) fee slashed **74%** (from Rs. 163 to Rs. 43) - Legal basis for price regulation: Section 3 of **Essential Commodities Act 1955** - Patent dispute: Govt. position — Indian Patents Act 1970 Section 3(j) excludes patenting of seeds, plants, varieties. The government argued that under PPVFR Act 2001, once a gene is inserted into the seed, it is a plant 'variety' and hence not patentable. Monsanto argued that it was not patenting Bt cotton seeds but the genes in them. - Delhi HC (April 2018): Ruled in favour of Nuziveedu and PPVFR Authority, declaring Monsanto's Bollgard and Bollgard-II patent illegal. - Supreme Court (January 2019): Restored the BT Cotton patent in India until its validity is finally decided by the High Court, remanding the case to the lower court for a full trial by evidence considering the complexities involved. **Opposition to GM Crops (concerns raised by environmental activists and Swadeshi Jagran Manch):** - Studies have shown a strong correlation between the growth of GM crops, the herbicides they promote, and diseases such as acute kidney injury, diabetes, Alzheimer's, and cancer in the US over the past 20 years. - 17 of the 20 most developed countries, including Japan, Russia, Israel, and most of Europe, refuse to grow GM crops. - Herbicide-tolerant GM crops can promote constant exposure to a single herbicide, leading to weeds eventually becoming resistant, and forcing farmers to increase hazardous herbicide use. - The introduction of GM mustard in India is feared to affect consumers (herbicide residues), displace women dependent on weeding, contaminate honey, reduce yields due to pollinator decline, and lead to a loss of India's seed diversity and international competitive advantage in non-GM mustard and honey. - Small and marginal farmers (86%) may not be able to afford the high cost of cultivation of GM crops, potentially pushing them further into poverty. **Protection of Plant Varieties and Farmers' Rights (PPVFR) Act 2001:** - Establishes effective system for protection of plant varieties - Protects rights of **farmers AND plant breeders** - Encourages development of new varieties **Breeders' Rights (under PPVFR):** - Breeder = person, group of persons, farmer or institution that has bred/evolved/developed any plant variety. - Rights: produce, sell, market, distribute, export and import the protected variety **Farmers' Rights (under PPVFR):** - Conservation of genetic resources of land races/wild relatives of economic plants; farmers engaged in such conservation and improvement are entitled to recognition and reward from the Gene Fund if their material is used as gene donors in registrable varieties. - Farmer can save, use, sow, resow, exchange, share or sell farm produce (including seeds) of protected varieties as before - Farmer CANNOT sell **branded (packaged) seed** of a protected variety **National Gene Fund:** - Established by Central Government under PPVFR Act - Breeders pay royalty (on the basis of benefit gained by such breeder/agent) to the National Gene Fund. - "Benefit sharing" mechanism: If someone can prove their genetic material was used to develop a variety, they get benefit sharing from Gene Fund. The amount of the "benefit sharing" to a variety is to be deposited by the breeder to the Gene Fund. "Benefit sharing" is defined as a proportion of the benefit accruing to a breeder of such variety. **Organic Farming:** - Relies on crop rotation, green manure, biological pest control - Avoids chemical pesticides, fertilizers, GMOs, antibiotics, artificial growth hormones - Largest area under organic certification: **Madhya Pradesh** (followed by Himachal Pradesh and Rajasthan) - First truly organic state: **Sikkim** (declared by PM Modi in **January 2016**) - It is a whole system of farming that aims to restore, maintain, and enhance the ecological balance. - It helps substitute costlier agricultural inputs (like HYV seeds, chemical fertilizers, pesticides) with cheaper, locally produced organic inputs. - It generates income through exports due to rising global demand for organically grown crops. - Organically grown food is considered to have more nutritional value than food from chemical farming. - It is a labor-intensive method, making it an attractive proposition for India. - Challenges include the need for farmer awareness and willingness, inadequate infrastructure, marketing issues, lower yields in initial years, difficulties for small/marginal farmers to adapt to large-scale production, more blemishes, shorter shelf life, and limited choice in off-season crops. **Cropping Seasons in India:** - Three cropping seasons: **Rabi, Kharif, Zaid** (summer months between rabi and kharif) **Irrigation Sources in India:** | Source | Share | |---|---| | Tube wells | **46%** (largest) | | Canals | **24%** | | Wells | **17%** | | Tanks | **12%** | - Indira Gandhi Canal: **Longest canal in India** and largest irrigation project in the world; 649 km long; from Harike Barrage (Punjab) to Thar Desert (Rajasthan) - Canals are most effective in areas of low-level relief, deep fertile soils, perennial water source, and extensive command area, with main concentration in the northern plains of India (Uttar Pradesh, Haryana, and Punjab). - Wells provide the most widely distributed source of irrigation, popular in regions with ample groundwater and few canals (e.g., eastern UP, Bihar). - Tube wells are common in areas where the water table is rather deep (over 15 metres), such as the Indo-Gangetic valley and certain coastal deltaic areas. - Tank irrigation: Most prevalent in Andhra Pradesh and Tamil Nadu (peninsular plateau, hard rocks, non-porous soils); **Andhra Pradesh (including Telangana) = 29% of India's tank irrigated area**. **National Livestock Mission:** - Launched: **2014-15** - The Mission's objective is the sustainable development of the livestock sector, focusing on improving availability of quality feed and fodder, risk coverage, effective extension, improved flow of credit, and organization of livestock farmers/rearers. - Livestock = 5% of total GDP; 26% of agricultural GDP (2010-11) - 20th Livestock Census: Total livestock population = **54 crore** (4.6% increase from previous census) - State with highest livestock: **Uttar