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Daily PIB/ 23 March
General Studies- II
Topic- Important International institutions, agencies and fora- their structure, mandate.
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Minimum support price (MSP)
Context:
The Cabinet Committee on Economic Affairs approved the Minimum Support Price (MSP) for Raw Jute for 2022-23 season.
- The approval is based on recommendations of the Commission for Agricultural Costs and Prices.
- The announced MSP of raw jute for 2022-23 season is in line with the principle of fixing the MSP at a level of at least 1.5 times all India weighted average cost of production as announced by the Government in the Budget 2018-19.
- It assures a minimum of 50 percent as margin of profit.
- It is one of the important and progressive steps towards ensuring better remunerative returns to the jute growers and to incentivize quality jute fibre.
What is MSP?
MSP is the rate at which the government buys grains from farmers. Currently, it fixes MSPs for 23 crops grown in both Kharif and Rabi seasons.
How is it calculated?
The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
- The Union Budget for 2018-19 had announced that MSP would be kept at levels of 1.5 the cost of production.
- The MSP is fixed twice a year on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which is a statutory body and submits separate reports recommending prices for kharif and rabi seasons.
Which production costs are taken in fixing the MSPs?
The CACP considers both ‘A2+FL’ and ‘C2’ costs while recommending MSP.
- A2 costs cover all paid-out expenses, both in cash and kind, incurred by farmers on seeds, fertilisers, chemicals, hired labour, fuel and irrigation, among others.
- A2+FL covers actual paid-out costs plus an imputed value of unpaid family labour.
- The C2 costs account for the rentals and interest forgone on owned land and fixed capital assets respectively, on top of A2+FL.
The limitations of MSP:
- The major problem with the MSP is lack of government machinery for procurement for all crops except wheat and rice, which the Food Corporation of India actively procures under the PDS.
- As state governments procure the last mile grain, the farmers of states where the grain is procured completely by the government benefit more while those in states that procure less are often affected.
- The MSP-based procurement system is also dependent on middlemen, commission agents and APMC officials, which smaller farmers find difficult to get access to.
General Studies- II
Topic- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Soil Health Card scheme
Context:
As per Soil Health Card scheme guidelines, the period of time for soil testing has to be completed by states/UTs within three weeks of receipts of soil samples in the lab and soil testing can be repeated after a time gap of two years after first testing, but farmers can get test as per their requirement.
Soil Health Card Scheme have been implemented in 32 States and UTs.
Soil Health Card scheme
The Soil health card Scheme was launched by the Ministry of Agriculture and Farmers’ Welfare on December 5, 2015.
- Under the scheme, village level Soil Testing Labs will be setting up by youth having education in agriculture, Women Self Help Groups, FPOs etc.
- SHC scheme also focus on enabling employment generation after appropriate skill development.
What is the Soil Health Card (SHC)?
- SHC is a printed report that a farmer will be handed over for each of his holdings.
- Soil Health Card provides two sets of fertilizer recommendations for six crops including recommendations of organic manures.
It will contain the status of his soil with respect to 12 parameters, namely:
- N,P,K (Macro-nutrients);
- S (Secondary- nutrient);
- Zn, Fe, Cu, Mn, Bo (Micro – nutrients); and
- pH, EC, OC (Physical parameters).
Objective of SHC
- A SHC is meant to give each farmer soil nutrient status of his/her holding.
- Advise him / her on the dosage of fertilizers and also the needed soil amendments that s/he should apply to maintain soil health in the long run.
Soil Health Card help the farmers in the following ways:
- The report generated through soil health card scheme encourages judicious and balanced use of fertilizers.
- The report card also suggested use of bio fertilizers, micronutrients and organic manures to increase soil fertility.
- Farmer’s training and demonstrations on farmers’ fields, under the scheme created awareness among the farmers to increase soil fertility.
- Indian council of Agricultural Research (ICAR) also imparts training to educate farmers on soil testing and soil health management.
Soil sample and testing
- Soil samples will be drawn in a grid of 2.5 ha in irrigated area and 10 ha in rain- fed area with the help of GPS tools and revenue maps.
- Soil Samples are taken generally two times in a year, after harvesting of Rabi and Kharif Crop respectively or when there is no standing crop in the field.
- Soil Samples will be collected by a trained person from a depth of 15-20 cm by cutting the soil in a “V” shape.
- It will then be transferred to soil test laboratory for analysis.
What is a soil test laboratory?
It is a facility for testing the soil sample for 12 parameters. This facility can be static or mobile or it can even be portable to be used in remote areas.
At the laboratories of the Science Colleges/Universities by the students under supervision of a Professor/ Scientist.
Significance of SHC
The scheme provides for the analysis of soil composition by the State Governments once in every two years so that remedial steps can be taken to improve soil nutrients. While the Soil Health Management Scheme has turned out to be a blessing for the farmers, it is also creating jobs for the agrarian youth.
General Studies- II
Topic- Development processes and the development industry the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.
Kisan Credit Card (KCC) Saturation drive
Context
The following steps have been taken to bring the maximum number of farmers under KCC in order to provide easy access to concessional institutional credit and simplify the process to avail KCC:
- All the charges including processing fee, inspection, ledger folio charges, service charges for loans upto Rs.3.00 lakh were waived off.
- Collateral free loan limit for short term agri-credit has been raised from Rs.1.00 lakh to Rs.1.60 lakh by RBI.
- State Governments have been advised to hold bank-wise and village wise camps to collect KCC application forms from eligible farmers and the applications collected therein to be submitted to the Bank’s branch.
- KCC is to be issued within 14 days from the receipt of completed application.
- A simple one-page special application form was also designed and shared with banks.
- The KCC has been extended to the farmers doing allied activities including Animal Husbandry, dairying and fisheries.
Kisan Credit Card Scheme:
The Kisan Credit Card (KCC) scheme was introduced in 1998 for providing adequate and timely credit support from the banking system under a single window.
- KCC covers post-harvest expenses, produce marketing loan, consumption requirements of farmer household, working capital for maintenance of farm assets and activities allied to agriculture, investment credit requirement for agriculture and allied activities.
- The Kisan Credit Card Scheme is implemented by Commercial Banks, RRBs, Small Finance Banks and Cooperatives.
Objective of KCC Scheme:
The scheme aims at providing adequate and timely credit for the comprehensive credit requirements of farmers under single window for their cultivation and other needs as:
- To meet the short term credit requirements for cultivation of crops
- Post-harvest expenses
- Produce Marketing loan
- Consumption requirements of farmer household
- Short term credit requirements of rearing of animals, birds, fish, shrimp, other aquatic organisms, capture of fish.
Eligibility and credit limit:
- All farmers-individuals/Joint borrowers who are owner cultivators.
- Tenant farmers, Oral lessees and Share Croppers etc.
- SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers etc.,
- Fishers, Fish Farmers (individual & groups/ partners/ share croppers/ tenant farmers), Self Help Groups, Joint Liability Groups and women groups.
Loan amount:
- Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest / household / consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance.
For Marginal Farmers: A flexible limit of Rs.10,000 to Rs.50,000 be provided (as Flexi KCC) based on the land holding and crops grown.
General Studies- II
Topic- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Direct Marketing
Context:
Union Agriculture Minister asked Chief Ministers of States to encourage direct marketing through Cooperatives/ Farmer Producer Organisations (FPOs) etc.
Highlights:
- ‘Direct Marketing’ helps decongest mandis and facilitates timely marketing of farm produce during lockdown.
- Government of India has been making concerted efforts to facilitate farmers in direct marketing and assure better returns.
- The States have been requested to promote the concept of ‘Direct marketing’ to facilitate farmers/ group of farmers/FPOs/ Cooperatives in selling their produce to bulk buyers/big retailers/processors etc.
Measures taken:
In order to decongest wholesale markets & to boost the supply chain, following two modules under National Agriculture Market (e-NAM) have been introduced:
FPO Module:
- FPOs can directly trade with e-NAM portal.
- They can upload produce details from collection centers with picture/quality parameter and avail the bidding facility without physically reaching to the mandis.
Warehouse Based Trading Module:
Farmers can sell their produce from Warehousing Development and Regulatory Authority (WDRA) registered warehouses notified as deemed market, and do not physically bring the produce to the nearest mandis.
What is Direct Marketing?
- Direct marketing is a promotional method.
- It involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman.
- It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer.
What are the Farmer Producer Organisations (FPOs)?
- It is one type of Producer Organizations (PO) where the members are farmers.
- Small Farmers’ Agribusiness Consortium (SFAC) is providing support for promotion of FPOs.
- PO is a generic name for an organization of producers of any produce, e.g., agricultural, non-farm products, artisan products, etc.
What are the essential features of a PO?
- It is formed by a group of producers for either farm or non-farm activities.
- It is a registered body and a legal entity.
- Producers are shareholders in the organization.
- It deals with business activities related to the primary produce/product.
- It works for the benefit of the member producers.
- A part of the profit is shared amongst the producers.
- Rest of the surplus is added to its owned funds for business expansion.
How does the FPO’s helps?
- FPOs help in collectivization of such small, marginal and landless farmers in order to give them the collective strength to deal with such issues.
- Members of the FPO will manage their activities together in the organization to get better access to technology, input, finance and market for faster enhancement of their income.
Benefits:
- Small and marginal farmers do not have economic strength to apply production technology, services and marketing including value addition.
- Through formation of FPOs, farmers will have better collective strength for better access to quality input, technology, credit and better marketing access through economies of scale for better realization of income.
Chrome facts for Prelims
International Day of Forests
International Day of Forests is observed every year on March 21 since 2012.
- The day aims to raise awareness regarding the importance of all types of forests.
- The International Day of Forests was established in 2012 by the Food and Agriculture Organization of the United Nations (FAO).
- The United Nations General Assembly had proclaimed 21 March as the International Day of Forests in 2012 to celebrate the importance of all types of forests.
- All countries are encouraged to undertake local, national and international activities involving forests and trees, such as tree-planting campaigns to commemorate World Forestry Day.
Theme for International Day of Forests 2022: “Forests and sustainable production and consumption”.
Disaster Management Plan of Ministry of Panchayati Raj
Union Minister of Panchayati Raj has released the “Disaster Management Plan of the Ministry of Panchayati Raj (DMP-MoPR)”.
Highlights:
- The DMP-MoPR aims to develop a culture of disaster resilience at the grassroots level among the Panchayats and Rural Local Bodies.
- It seeks to establish a framework to align the disaster management measures in rural areas to that of the National Disaster Management Authority (NDMA).
- Under the Plan, every Indian village would have a “Village Disaster Management Plan” and every Panchayat would have their Disaster Management Plan.
- All stakeholders including PRIs, elected representatives and functionaries of Panchayats etc. would participate in planning, implementation, monitoring and evaluation of the plan.
Areas covered under the DMP-MoPR:
- Institutional arrangement for Disaster Management.
- Hazard Risk, Vulnerability and Capacity Analysis.
- Coherence of Disaster Risk Management across Resilient Development and Climate Change Action.
- Disaster Specific Preventive and Mitigation Measures-Responsibility Framework.
- Mainstreaming of Community Based Disaster Management Plan of Villages and Panchayats and so on.
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