In News:

• In 2023, the Organisation for Economic Co-operation and Development (OECD) revealed that Indian farmers faced the highest implicit taxation globally, amounting to USD 120 billion.
• Implicit Taxation: This taxation arises from government policies like export bans, duties, and price controls, aimed at lowering food prices for consumers but reducing the income of farmers.
• Export Restrictions: Key commodities affected include rice, sugar, onions, and de-oiled rice bran.

Impact on Indian Farmers

• Market Price Support (MPS):
  • Negative MPS: In 2023, Indian agricultural policies resulted in a negative MPS of USD 110 billion.
  • Farmers received lower prices than international market rates due to export bans and trade restrictions, impacting their income.
• Budgetary Support: Despite government subsidies and the Minimum Support Price (MSP) worth USD 10 billion, negative MPS outweighed positive support, leading to an overall loss for farmers.
• Farmer’s Share in Global Negative Support:
  • India’s share of global negative price support in 2023 was 62.5%, a significant increase from 61% in 2000-02.

Global Agricultural Policy Trends

• Global Support: Total support for agriculture across 54 countries averaged USD 842 billion annually (2021-2023). However, there was a decline in support in 2022-23 from the pandemic-era peak.
• Challenges:
  • Geopolitical Tensions (e.g., Russia-Ukraine war) and climate change are exacerbating global agricultural production and trade.
  • Export Restrictions in various countries are distorting international agricultural markets.
  • Farmer Protests across countries reflect the economic and social struggles of the farming community.
• Sustainability Issues: Global agricultural productivity growth is slowing, posing challenges to feeding a growing population sustainably.

India's Agricultural Policies

• Export Bans and Restrictions: These policies are intended to control domestic prices but undermine farmers’ income by lowering market prices for key agricultural products.
• Minimum Support Price (MSP): MSP is meant to protect farmers, but is often set below international market rates, leading to a negative price effect.
• Regulatory Constraints: Policies like the Essential Commodities Act (1955) and APMC Act (2003), though aimed at ensuring food security, often lead to price suppression for farmers.
• Price Depressing Policies: India's agricultural policies result in lower farm-gate prices due to price controls, government-set procurement prices, and lack of market access.

Negative Market Price Support (MPS)

• Historical Trends:
  • From 2014-2016, India’s Producer Support Estimate (PSE) was -6.2%, driven mainly by negative MPS (-13.1%).
  • The PSE measures the annual value of transfers to farmers, both from consumers and the government.
• Inefficiencies:
  • Infrastructure Gaps: Poor infrastructure and high transaction costs lower the prices farmers receive.
  • Inefficient Resource Allocation: Short-term subsidies for inputs (fertilizers, irrigation) don’t address long-term agricultural challenges like climate change and market access.

Government Support Programs

• Subsidies and Schemes:
  • National Mission on Sustainable Agriculture (NMSA)
  • Paramparagat Krishi Vikas Yojana (PKVY) for organic farming.
  • Rashtriya Krishi Vikas Yojana (RKVY) to promote agricultural development.
  • Digital Agriculture Mission and Unified Farmer Service Platform (UFSP) for modernizing agricultural practices.
• Sustainability Efforts:
  • The government has introduced initiatives like AgriStack and Mission Organic Value Chain Development in the North East to enhance sustainable agricultural practices and reduce the negative impacts on farmers.

Global Context and Recommendations

• Environmental Public Goods Payments (EPGP): Only 0.3% of total producer support is dedicated to environmental sustainability, despite the growing need for climate-resilient agriculture.
• Sustainable Agricultural Practices: The OECD advocates for governments to tie producer support to sustainable farming practices, including the use of metrics like Total Factor Productivity (TFP) and Agri-Environmental Indicators (AEIs).
  • TFP measures agricultural efficiency, while AEIs assess the environmental impacts of farming.

OECD Overview

• OECD Function: Founded in 1961, the OECD is an international organization of 38 countries that promotes prosperity, equality, and well-being through economic reports, data, and policy analysis.
• India’s Role: India has been an OECD Key Partner since 2007, engaging with the OECD on various policy issues, though it is not a member.

In News:

A mechanically stable, biodegradable, hydrophobic nanocoating material can enhance the nutrient use efficiency of chemical fertilizers by tuning them for slow release, thereby limiting their interaction with the rhizosphere soil, water and microbes.

Development of Slow-Release Fertilizers:

• A biodegradable, hydrophobic nanocoating has been developed to enhance the nutrient use efficiency of chemical fertilizers.
• The nanocoating allows for slow release of nutrients, thus limiting excessive interaction with soil, water, and microbes, and optimizing fertilizer usage.

Coating Composition:

• The coating is made from nanoclay-reinforced binary carbohydrates, primarily chitosan (a biopolymer from chitin) and lignin (a plant-based polymer).
• These materials are low-cost, naturally derived, and eco-friendly, ensuring sustainability and reducing the environmental impact of fertilizer use.

Technological Innovation:

• The coating process involves using a drum rotor method to uniformly coat fertilizers, improving their efficiency.
• The tuning of hydrophobicity in the nanocoating alters the release kinetics of fertilizers, ensuring that nutrients are released in accordance with the crop’s nutrient uptake needs.

Sustainability and Biodegradability:

• The nanocoating is biodegradable, which ensures that it does not harm the environment post-application, unlike conventional chemical fertilizers that may lead to soil degradation and water pollution.
• Life cycle assessment confirms the product's long-term sustainability compared to traditional fertilizers.

Enhanced Crop Productivity:

• The slow-release coating enables a reduced fertilizer dose, while maintaining or even increasing crop yields, particularly for staple crops like rice and wheat.
• This technology facilitates higher agricultural output with fewer inputs, contributing to food security.

Industrial Viability:

• The mechanical stability of the coated fertilizers ensures they can withstand transportation and handling, making them suitable for large-scale industrial application.
• The rotary drum system used for coating ensures uniform application and superior mechanical performance, ensuring that the fertilizers are not damaged during the supply chain process.

Economic Benefits:

• The use of slow-release fertilizers can reduce overall fertilizer costs for farmers while enhancing yields, leading to improved socio-economic conditions for farmers.
• The technology holds potential for economic growth by boosting agricultural productivity and reducing the financial burden on farmers for chemical fertilizer inputs.

Global Relevance:

• The research is significant in the context of global sustainable development goals, aiming to reduce the over-reliance on conventional chemical fertilizers that contribute to soil degradation, water contamination, and greenhouse gas emissions.

Research Collaboration:

• This breakthrough was achieved by scientists from the Institute of Nano Science and Technology (INST), Mohali, in collaboration with the Department of Science and Technology (DST).
• The findings were published in the peer-reviewed journal Environmental Science: Nano, highlighting its scientific validation.

In News:

• India's annual hidden costs from agrifood systems total $1.3 trillion, the third-largest globally, after China ($1.8 trillion) and the US ($1.4 trillion).
• These costs are mainly driven by unhealthy dietary patterns leading to non-communicable diseases (NCDs), such as heart disease, diabetes, and stroke.

Major Contributors to Hidden Costs:

• Unhealthy Diets: Over 73% of India’s hidden costs stem from unhealthy dietary habits, including:
  • Excessive consumption of processed foods and additives ($128 billion).
  • Low intake of plant-based foods, fruits, and beneficial fatty acids ($846 billion).
• These dietary risks contribute to a significant health burden, increasing the prevalence of NCDs and reducing labor productivity.

Global Context:

• Global hidden costs of agrifood systems amount to $12 trillion annually.
• 70% of these costs (~$8.1 trillion) arise from unhealthy dietary patterns, which include high intakes of sugar, salt, and processed foods, contributing to diseases and economic losses.

Health Impacts:

• The report identifies 13 dietary risk factors that contribute to NCDs, including insufficient intake of whole grains, fruits, vegetables, and excessive sodium, with varying effects across different agrifood systems.

Environmental and Social Costs:

• Environmental Costs: High costs from unsustainable agricultural practices, including greenhouse gas emissions and nitrogen runoff. In some agrifood systems, environmental costs can reach up to 20% of GDP.
• Social Costs: High poverty rates among agrifood workers and undernourishment in systems like protracted crises and traditional agrifood systems contribute significantly to the hidden costs.

India’s Agrifood System Profile:

• India’s agrifood system faces significant challenges related to low wages, poor productivity, and poverty among agrifood workers, driven by distributional failures.
• Climate Change and Environmental Degradation: Issues like droughts, floods, and soil degradation threaten food security and agricultural sustainability in India.

Recommendations for Transformative Change:

• True Cost Accounting: Implementing this method can help better capture hidden costs and enable more informed decision-making for a sustainable agrifood system.
• Healthier Diets: Policies to make nutritious food more affordable and accessible to reduce health-related hidden costs.
• Sustainability Incentives: Encouraging practices that reduce greenhouse gas emissions, harmful land-use changes, and biodiversity loss, using labelling, certification, and industry standards.
• Consumer Empowerment: Providing accessible information about the environmental, social, and health impacts of food choices, ensuring even vulnerable households benefit from healthier options.

India’s Path Forward:

• India has several ongoing initiatives for sustainable agriculture, including:
  • National Mission for Sustainable Agriculture (NMSA).
  • Eat Right Initiative.
  • Digital Agriculture Mission (DAM).
• However, challenges like climate change, soil degradation, and low productivity among smallholder farmers hinder progress toward sustainable food systems.

Key Focus Areas for India’s Agrifood Systems:

• Support for Smallholder Farmers: Enhancing access to technology, markets, and financial services for marginalized farmers.
• Sustainable Practices: Adoption of water-efficient practices, soil health restoration, and environmentally friendly farming methods.
• Collaboration with International Agencies: Cooperation with FAO, WFP, and others to strengthen agricultural reforms and support smallholder farmers.

In News:

Department of Agriculture & Farmers’ Welfare has released the Operational Guidelines of Central Sector Scheme “NAMO DRONE DIDI”

Key Highlights:

Objective:

• Empower women through Self-Help Groups (SHGs) by providing drones for agricultural rental services.
• Aim to support 14,500 SHGs from 2024 to 2026.

Scheme Overview:

• Type: Central Sector Scheme, under the Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM).
• Ministry: Ministry of Agriculture & Farmers Welfare.
• Target: Women SHGs for providing drone services in agriculture (e.g., nutrient and pesticide spraying).

Key Features:

• Financial Assistance:
  • 80% subsidy (up to ?8 lakh) for SHGs to purchase drones.
  • Loans for the remaining 20% via the National Agriculture Infra Financing Facility (AIF) with 3% interest subvention.
• Drone Package:
  • Includes drones, spray assemblies, batteries, cameras, chargers, and measurement tools.
  • Additional batteries and propellers allow up to 20 acres of coverage per day.
• Training Program:
  • One SHG member will be selected for 15 days of mandatory training.
  • Focus on drone operation and agricultural tasks (nutrient and pesticide spraying).
• Implementation & Oversight:
  • Central Governance: Empowered Committee comprising secretaries from key ministries (Agriculture, Rural Development, Fertilizers, Civil Aviation, and Women and Child Development).
  • State Level: Lead Fertilizer Companies (LFCs) will implement the scheme in coordination with state departments and SHG federations.
  • Monitoring: IT-based Management Information System (MIS) through the Drone Portal for real-time tracking and fund disbursement.
• Financial Flexibility:
  • SHGs can access loans through other Ministry of Rural Development schemes if needed.

Implementation Details:

• Governance: Central level oversight by the Empowered Committee and state-level execution by Lead Fertilizer Companies (LFCs).
• Ownership: Drones procured by LFCs will be owned by SHGs or their Cluster Level Federations (CLFs).
• Monitoring: The scheme will be tracked and managed through the Drone Portal, ensuring transparency and accountability.

In News:

• The Union Government has decided to introduce four new components under the Mission for Integrated Development of Horticulture (MIDH), aimed at promoting modern farming techniques:Hydroponics, Aquaponics, Vertical Farming&Precision Agriculture

Key Features of MIDH:

• MIDH is a Central Sponsored Scheme (CSS) aimed at the integrated development of various horticulture crops, including:
  • Fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic plants, coconut, cashew, cocoa, and bamboo.
• The scheme focuses on pre-production, production, post-harvest management, processing, and marketing activities.

Revision of Operational Guidelines and Cost Norms:

• The Ministry of Agriculture and Farmers' Welfare is revising the MIDH operational guidelines and cost norms, which were last updated in April 2014.
• The revised guidelines are expected to be released within one month.
• Cost norms are likely to increase by 20% compared to the existing rates, addressing concerns from various states about outdated guidelines.

Reason for Revision:

• Several states, including Odisha, have raised concerns over the old rates under MIDH. For example, Odisha’s Agriculture Minister highlighted that the state was still using 10-year-old rates.
• The Union Cabinet had already approved the rationalization of all CSS operating under the Ministry into two umbrella schemes:
  • Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY)
  • Krishonnati Yojana (KY)

Growth in India's Horticulture Sector:

• India’s horticulture production has significantly increased in recent years:
  • Total production reached 334.60 million metric tonnes in 2020-21, up from 240.53 million metric tonnes in 2010-11.
• India is now the second largest producer of fruits and vegetables globally, surpassing food grain production.
• MIDH Annual Budget:The annual allocation for MIDH in the current financial year (2024-25) is ?2,000 crore.

In News:

Recently, the Department of Agriculture & Farmers' Welfare (DA&FW) organised a National Workshop on the SATHI (Seed Authentication, Traceability, and Holistic Inventory) Portal in New Delhi.

Key Highlights:

Purpose & Focus

• SATHI Portal: Focuses on Seed Authentication, Traceability, and Holistic Inventory to enhance seed certification, improve seed traceability, and streamline the seed supply chain.
• Primary Objective: Ensure availability of high-quality seeds to farmers through a transparent and efficient seed management system.

Key Features of the SATHI Portal

• Seed Certification: Aims to streamline seed certification processes across states for faster and more accurate seed certifications.
• Seed Traceability: Enhances transparency and traceability of seeds to ensure quality and authenticity.
• Inventory Management: The portal facilitates seed inventory management, helping farmers and stakeholders access reliable and transparent seed information.
• Technological Integration: Developed by the National Informatics Centre (NIC), the portal incorporates technology-driven solutions to minimize transactional time for registrations, approvals, and certifications.

Phase-II Rollout

• Focus on seed inventory management, with the objective of offering farmers reliable access to certified seed varieties.
• It aims to integrate state-specific seed processes into the national framework for greater standardization and efficiency.

Workshops & Technical Sessions

• NIC and ICAR Presentations: Covered the core components of the SATHI Portal, including:
  • Seed Law Enforcement
  • DNA Fingerprinting for ensuring seed authenticity.
  • Seed Laboratory Processes to uphold quality control.
• Review of Phase-I: Discussions on achievements of Phase-I, focusing on improvements in seed certification processes across states.
• State Experiences: 10 state representatives shared insights on their experiences with the portal, discussing both benefits and challenges in the implementation phase.

Role of NIC & Technology

• The National Informatics Centre (NIC) is the technology partner behind the SATHI Portal, which is designed to enhance the efficiency of seed certification and inventory management.
• The portal contributes to larger digital initiatives like the Digital Agriculture Mission and Unified Farmer Service Platform (UFSP), which aim to support agricultural development through technology.

In News:

Recently, the Director-General of the Food and Agriculture Organization (FAO) inaugurated the third Hand-in-Hand Investment Forum.

Purpose and Goals

• Objective: To accelerate the transformation of agrifood systems to address global challenges:
  • Eradicate poverty (SDG 1)
  • End hunger and malnutrition (SDG 2)
  • Reduce inequalities (SDG 10)
• Target: Focuses on improving the lives of poor and vulnerable populations by:
  • Raising incomes
  • Enhancing nutritional status and overall well-being
  • Strengthening resilience to climate change

Key Features of the HIH Initiative

• Launched: 2019 as a flagship program by the Food and Agriculture Organization (FAO).
• Primary Focus Areas:
  • Geospatial and analytics-driven approach: Utilizes advanced geospatial modeling, biophysical, socio-economic data, and analytics to identify key territories for intervention.
  • Market-based transformation: Aims to create sustainable, market-based solutions for agricultural development and food systems transformation.
  • Value Chain Development: Focus on developing value chains for priority commodities to boost incomes and food security.
  • Agro-Industry Building: Strengthening agro-industries and introducing efficient water management and precision agriculture systems.
  • Digitalization: Introducing digital services for better agricultural planning and productivity.

Key Areas of Intervention

• Agricultural Transformation: Identifying territories with the highest potential for transformation.
• Sustainable Management: Focus on sustainable practices in forestry, fisheries, and land management.
• Climate Resilience: Building systems to mitigate the effects of climate change and reduce vulnerability.
• Food Loss Reduction: Addressing food losses and waste across agricultural value chains.

Global Participation

• Member Countries: 72 countries have joined the initiative, collaborating on shared goals for agrifood systems transformation.

The Hand-in-Hand Investment Forum

• Purpose: A platform to mobilize investments for the successful implementation of agrifood transformation programs under the HIH initiative.
• Event: The third Hand-in-Hand Investment Forum was recently opened by the FAO Director-General to discuss challenges and solutions for global agrifood system transformation.

About the Food and Agriculture Organization (FAO)

• Established: October 1945, it is the oldest permanent specialized agency of the United Nations.
• Mandate:
  • Improve nutrition.
  • Increase agricultural productivity.
  • Raise the standard of living in rural areas.
  • Contribute to global economic growth.
• Headquarters: Rome, Italy.
• Members: 194 Member States and the European Union.

Key Role of FAO:

• FAO leads international efforts to combat hunger and malnutrition worldwide.
• Supports member countries in implementing agricultural and food security programs.

Strategic Importance

• The Hand-in-Hand Initiative is integral to FAO’s mandate, focusing on countries with the most pressing needs due to poverty, hunger, or crises (natural or man-made).
• It enhances cooperation among nations to tackle global food security challenges, with a particular emphasis on countries with limited national capacities.

In News:

The Union Cabinet chaired by Prime Minister, Shri Narendra Modi, approved seven schemes to improve farmers’ lives and increase their incomes at a total outlay of Rs 14,235.30 Crore.

1. Digital Agriculture Mission: based on the structure of Digital Public Infrastructure, Digital Agriculture Mission will use technology for improving farmers’ lives. The Mission has a total outlay of Rs 2,817 crores. It comprises two foundational pillars

1. Agri Stack

1. Farmers registry
2. Village land maps registry
3. Crop Sown Registry

2. Krishi Decision Support System

1. Geospatial data
2. Drought/flood monitoring
3. Weather/satellite data
4. Groundwater/water availability data
5. Modelling for crop yield and insurance

 The Mission has provision for 

• Soil profile
• Digital crop estimation
• Digital yield modelling
• Connect for crop loan
• Modern technologies like AI and Big Data
• Connect with buyers
• Bring new knowledge on mobile phones

2. Crop science for food and nutritional security: with a total outlay of Rs 3,979 crore. The initiative will prepare farmers for climate resilience and provide for food security by 2047. It has following pillars:

1. Research and education
2. Plant genetic resource management
3. Genetic improvement for food and fodder crop
4. Pulse and oilseed crop improvement
5. Improvement of commercial crops
6. Research on insects, microbes, pollinators etc.

3. Strengthening Agricultural Education, Management and Social Sciences: with a total outlay of Rs 2,291 Crore the measure will prepare agriculture students and researchers for current challenges and comprises the following

1. Under Indian Council of Agri Research
2. Modernising agri research and education
3. In line with New Education Policy 2020
4. Use latest technology … Digital DPI, AI, big data, remote, etc
5. Include natural farming and climate resilience

4. Sustainable livestock health and production: with a total outlay of Rs 1,702 crore, the decision aims to Increase farmers income from livestock and dairy. It comprises the following

1. Animal health management and veterinary education
2. Dairy production and technology development
3. Animal genetic resource management, production and improvement
4. Animal nutrition and small ruminant production and development

5. Sustainable development of Horticulture: with a total outlay of Rs 1129.30 crore the measure is aimed at increasing farmers’ income from horticulture plants. It comprises the following

1. Tropical, sub-tropical and temperate horticulture crops
2. Root, tuber, bulbous and arid crops
3. Vegetable, floriculture, and mushroom crops
4.  Plantation, spices, medicinal, and aromatic plants

6. Strengthening of Krishi Vigyan Kendra with an outlay of Rs 1,202 crore

7. Natural Resource Management with an outlay of Rs 1,115 crore

Introduction

India's digital revolution has significantly transformed governance and service delivery in recent years by creating digital identities, secured payments and transactions. This progress has paved the way for a thriving digital ecosystem across various sectors, including finance, healthcare, education, and retail, positioning India as a leader in citizen-centric digital solutions.

For a similar transformation of the Agriculture Sector, the Union Cabinet Committee, chaired by Prime Minister Narendra Modi approved the 'Digital Agriculture Mission' with a substantial financial outlay of Rs. 2,817 Crore, including a central government share of Rs. 1,940 Crore, on September 2, 2024.

The Digital Agriculture Mission is designed as an umbrella scheme to support various digital agriculture initiatives. These include creating Digital Public Infrastructure (DPI), implementing the Digital General Crop Estimation Survey (DGCES), and supporting IT initiatives by the Central Government, State Governments, and Academic and Research Institutions.

The scheme is built on two foundational pillars:

• Agri Stack
• Krishi Decision Support System.

Additionally, the mission includes ‘Soil Profile Mapping’ and aims to enable farmer-centric digital services to provide timely and reliable information for the agriculture sector.

AgriStack: Kisan ki Pehchaan

AgriStack is designed as a farmer-centric Digital Public Infrastructure (DPI) to streamline services and scheme delivery to farmers. It comprises three key components:

1. Farmers' Registry

2. Geo-referenced village maps

3. Crop Sown Registry

• A crucial feature of AgriStack is the introduction of a 'Farmer ID', similar to Aadhaar card, serving as a trusted digital identity for farmers.
  • These IDs, created and maintained by the State Governments/ Union Territories, will be linked to various farmer-related data, including land records, livestock ownership, crops sown, and benefits availed.
• The implementation of AgriStack is progressing through partnerships between the Central and State Governments, with 19 states having signed MoUs with the Ministry of Agriculture. Pilot projects have been conducted in six states to test the creation of Farmer IDs and the Digital Crop Survey.
• The six states include Uttar Pradesh (Farrukhabad), Gujarat (Gandhinagar), Maharashtra (Beed), Haryana (Yamuna Nagar), Punjab (Fatehgarh Sahib), and Tamil Nadu (Virudhnagar).

Key targets include:

• Creating digital identities for 11 crore farmers over three years (6 crore in FY 2024-25, 3 crore in FY 2025-26, and 2 crore in FY 2026-27)
• Launching the Digital Crop Survey nationwide within two years, covering 400 districts in FY 2024-25 and all districts in FY 2025-26

 2. Krishi Decision Support System

• The Krishi Decision Support System (DSS) will integrate remote sensing data on crops, soil, weather, and water resources into a comprehensive geospatial system.

 3. Soil Profile Mapping

Under the mission, detailed soil profile maps on a 1:10,000 scale for approximately 142 million hectares of agricultural land have been envisaged, with 29 million hectares of soil profile inventory already being mapped.

• Further under the Digital Agriculture Mission, the Digital General Crop Estimation Survey (DGCES) will be used for crop-cutting experiments to provide precise yield estimates, enhancing agricultural production accuracy.
• The mission is expected to create direct and indirect employment in agriculture, providing opportunities for around 2,50,000 trained local youth and Krishi Sakhis.
• By leveraging modern technologies like data analytics, AI, and remote sensing, the mission will improve service delivery for farmers, including streamlined access to government schemes, crop loans, and real-time advisories.

Key Components of the Mission

The Digital Agriculture Mission focuses on grassroots implementation, targeting farmers as the primary beneficiaries. Some of the key benefits of the mission include:

• Digital authentication for accessing services and benefits, reducing paperwork and the need for physical visits.
• Enhanced efficiency and transparency in government schemes, crop insurance, and loan systems through accurate data on crop area and yield.
• Crop map generation and monitoring for better disaster response and insurance claims.
• Development of digital infrastructure to optimize value chains and provide tailored advisory services for crop planning, health, pest management, and irrigation.

Digital Public Infrastructure for Agriculture

• Union Finance Minister Nirmala Sitharaman announced in the Union Budget 2024-25 that the Government, in partnership with states, will implement Digital Public Infrastructure (DPI) for agriculture over the next three years.
• This initiative will cover farmers and their lands, with a digital crop survey for Kharif planned for 400 districts this year. The goal is to update registries with details of 6 crore farmers and their lands.
• The Union Budget 2023-24 had previously introduced the DPI for agriculture, which aims to provide comprehensive data on farmers, including demographic details, land holdings, and crops sown. The DPI will integrate with state and central digital infrastructures to offer a range of farmer-centric services, including information on livestock, fisheries, soil health, and available benefits. 

Conclusion

• The Union Cabinet also approved six major schemes alongside the Digital Agriculture Mission, with a total outlay of Rs 14,235.30 crore.
• These initiatives include Rs 3,979 crore for Crop Science aimed at ensuring food security and climate resilience by 2047, and Rs 2,291 crore for strengthening Agricultural Education, Management, and Social Sciences to support students and researchers. Rs 1,702 crore is allocated for Sustainable Livestock Health and Production to boost incomes from livestock and dairy, while Rs 1,129.30 crore is designated for Sustainable Development of Horticulture to increase income from horticulture. Additionally, Rs 1,202 crore will be invested in strengthening Krishi Vigyan Kendra, and Rs 1,115 crore towards Natural Resource Management.
• These comprehensive approaches leverage digital technologies to enhance productivity, efficiency, and sustainability in India's agricultural sector, potentially transforming the lives of millions of farmers across the country. By extending the digital revolution to agriculture, India aims to further solidify its position as a global leader in innovative, technology-driven solutions for critical sectors of the economy.

In the News

The Union Ministry of Commerce and Industry has authorized the SPICED scheme (Sustainability in Spice Sector through Progressive, Innovative, and Collaborative Interventions for Export Development), which will run until 2025-26.

Overview

This initiative aims to expand the cultivation area and enhance the productivity of both small and large cardamom. It will also focus on improving the quality of spices for export through advancements in post-harvest processes and promoting value-added spice exports.

Key Objectives:

• Increase cardamom production and boost export potential.
• Improve post-harvest quality to meet export standards and ensure compliance with safety and quality regulations.

India holds the position of the largest producer, consumer, and exporter of spices globally.

Cardamom

Cardamom is sourced from the seeds of the Elettaria cardamomum plant (commonly known as green or true cardamom) and is a member of the ginger family. It is known for its unique, robust flavor that combines both spicy and sweet notes. There are two primary varieties: Small Cardamom and Large Cardamom.

Small Cardamom:

• Origin: Native to the evergreen forests of South India's Western Ghats.
• Major Producers: Primarily grown in Kerala, Karnataka, and Tamil Nadu.
• Growing Conditions: Thrives in loamy soil with thick shade, requires temperatures between 10°C and 35°C, and needs 1500 to 4000 mm of annual rainfall.

Large Cardamom:

• Distribution: Mainly cultivated in the Sub-Himalayan regions of Northeast India, Nepal, and Bhutan.
• Major Producers: Key production areas include Sikkim, Arunachal Pradesh, and the Darjeeling district of West Bengal.
• Growing Conditions: Prefers high altitudes (600 to 2000 meters), with average rainfall of 3000-3500 mm, and temperatures ranging from 6°C to 30°C. Well-drained, loamy soils rich in organic matter are ideal.

About the Spices Board of India

Established in 1987 under the Ministry of Commerce and Industry, the Spices Board of India serves as the apex organization for the promotion and export of a diverse array of spices, including black pepper, both small and large cardamom, ginger, turmeric, cinnamon, cumin, and fenugreek. The Board was formed by merging the Cardamom Board (1968) and the Spices Export Promotion Council (1960). Its headquarters is located in Kochi, Kerala.

Overview:

The ICAR-National Institute of Secondary Agriculture (NISA), originally established in 1924 as the Indian Institute of Natural Resins and Gums in Ranchi, Jharkhand, marks its centenary this year. Renamed in 2022, it operates under the Ministry of Agriculture and Farmers’ Welfare, focusing on enhancing the value of agricultural products.

Understanding Secondary Agriculture:

Secondary agriculture encompasses the transformation of primary agricultural products into higher-value commodities and includes activities such as:

• Beekeeping
• Poultry farming
• Agricultural tourism

This sector plays a crucial role in converting agricultural produce, residues, and by-products into valuable goods for various uses, including pharmaceuticals, food, and industrial applications. Examples of secondary agriculture practices include:

• Extracting vitamins from grains
• Producing oil from rice bran
• Making jaggery from sugarcane
• Cottage industries for jams and pickles

Growth Potential: The sector is poised for growth due to:

• Increasing consumer demand for value-added products like ready-to-eat meals.
• The need for innovative uses of renewable agro-bio resources.
• The significant availability of agricultural byproducts.

Significance of Secondary Agriculture:

1. Environmental Sustainability: Proper utilization of crop residues can reduce waste and pollution.
2. Enhanced Farmer Income: Activities like beekeeping and lac culture provide additional revenue streams for farmers.
3. Value Addition: Processing agricultural products increases their shelf life and overall productivity.
4. Promotion of Cottage Industries: Supports rural economies and fosters technology adoption.

Challenges Ahead: Despite its potential, secondary agriculture faces several hurdles:

• The industry for high-value products from agricultural byproducts, such as Active Pharmaceutical Ingredients, is still emerging.
• Small landholdings complicate the collection of crop residues.
• Limited research on suitable technologies hampers development.
• There is a lack of awareness among farmers regarding the processing of agricultural waste.

Conclusion

As ICAR-NISA celebrates its 100th anniversary, it remains crucial in shaping the future of secondary agriculture in India, addressing both challenges and opportunities to enhance sustainability and farmer livelihoods.

In News:

The Centre is contemplating to earmark Rs 6,000 crore to promote precision farming, a modern approach that uses smart technology such as Internet of Things, Artificial Intelligence, drones and data analytics to boost production through maximal use of resources while minimising environmental impact.

Key Details:

• Union Ministry of Agriculture is planning a Smart Precision Horticulture Programme under the existing Mission for Integrated Development of Horticulture (MIDH) scheme.
• It will cover 15,000 acres of land in five years from 2024-25 to 2028-29 and is expected to benefit about 60,000 farmers.
• At present, the Agriculture Infrastructure Fund (AIF), launched during Covid-19, has provisions for financing infrastructure projects for smart and precision agriculture.
• Under AIF, individual farmers as well as farmers’ communities such as Farmer Producer Organization, Primary Agricultural Credit Societies and SHGs are eligible for loans with interest subvention of 3% for using technological solutions in farm practices. These practices include farm/ harvest automation; purchase of drones, putting up specialised sensors on field; use of blockchain and AI in agriculture; remote sensing and Internet of Things (IoT).

Positive impact

• Smart and precision agriculture maximises use of resources like water, fertilisers and pesticides to increase production quality and quantity, all while insulating farmers from vagaries of climate change and other uncertainties, besides ensuring sustainable farming.

Apart from offering financial support, the Centre is also considering collaborating with the Netherlands and Israel, where tech-based modern farming solutions are being used, through Centres of Excellences (CoEs). The number of CoEs is likely to be 100 in the next five years. Under Indo-Israel Agriculture Project, 32 CoEs have already been set up across 14 states.

The Centre has also set up 22 Precision Farming Development Centres (PFDCs) across the country to test new technologies and modify them according to local needs.

According to the Ministry, these 22 PFDCs are located across State/Central Agricultural Universities, ICAR Institutes and IITs in TN, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Haryana, Telangana, West Bengal, Ladakh, UP, Punjab, Gujarat, Uttrakhand, Maharashtra, Chhattisgarh, Jharkhand, Bihar, Himachal Pradesh, Kerala, Manipur and Assam. Besides, funds are released to states/UTs for projects involving use of AI and machine learning, under schemes like the National e-Governance Plan in Agriculture.

What is Precision Agriculture?

• Precision Agriculture is a farm management concept that revolves around the process of observing, measuring, and responding to various inter-and intra-field variability inputs for modern agriculture.
• Popular definitions of Precision Agriculture (PA) or Site-Specific Crop Management (SSCM) describe the term as a technology-enabled approach to farming management that observes, measures, and analyzes the needs of individual fields and crops.
• The goal of precision agriculture is to increase efficiency and productivity, reduce input costs, and improve environmental sustainability.
• Key Advantages:
  • A refined set of cultivation practices and choice of crops based on the suitability of land
  • Elimination of volatility and risk
  • Waste management
  • Reduced production costs
  • Minimum environmental impact
  • Optimized use of fertilizers
  • Water management with optimized irrigation practices
  • Improved soil health

In News:

Haryana has seen an overall fall in acreage under cotton cultivation to 4.76 lakh hectares (lh) this kharif season from 6.65 lh in 2023. This has been accompanied by an increase in the area under rice from 15.20 lh to an all-time-high of 16.44 lh in the state.

Key Details:

• The reduction in the cotton area — also reported in neighbouring Rajasthan (from 7.91 lh to 5.13 lh) and Punjab (2.14 lh to 1 lh) — has been attributed mainly to PBW infestation.
• In May-June this year, at the time of sowing, the price of kapas (raw unginned cotton) averaged Rs 6,700-6,800 per quintal in Haryana mandis. This was against the average Rs 11,100-11,200 per quintal two years ago.

Pink Bollworm (PBW) Infestation:

• Impact: The pink bollworm has devastated cotton yields by attacking the bolls, which affects the weight and quality of the cotton. This pest has been particularly damaging since its appearance in 2017-18 and has caused significant losses in Haryana, Rajasthan, and Punjab.
• Spread: PBW spreads through the air and infected crop residues, which harbor larvae and spread to future crops. This infestation has led to a dramatic decrease in cotton acreage.

The spread of pink bollworm

• The pink bollworm first appeared in north India during the 2017-18 season in a few districts in Haryana and Punjab, primarily cultivating Bt cotton, and spread to Rajasthan by 2021.
• PBW primarily spreads through the air. Residue of infected crops, often left by farmers on the field to be used as fuel, can also harbour PBW larvae which can then infect future crops. Infected cotton seeds are another reason behind the pest’s spread.

Economic Impacts:

• Price Decline: The price of kapas (raw cotton) has dropped from Rs 11,100-11,200 per quintal to Rs 6,700-6,800, significantly impacting farmers’ profitability.
• Farmer Losses: Farmers like Shyam Sundar have reported substantial losses due to low yields and poor quality, leading them to switch to more profitable and reliable crops like paddy and guar.

Transition to Paddy

Water Requirements:

• Challenges: Paddy requires much more water compared to cotton. Farmers need to flood their fields, which is challenging in regions where groundwater is saline or limited.
• Current Practices: Despite the increased water requirements, some farmers have transitioned to paddy due to its potentially better economic returns, especially when paddy prices are relatively high.

Monsoon and Irrigation:

• Weather Dependence: The monsoon this year has been favorable, allowing some farmers to successfully grow paddy. However, reliance on monsoon and supplementary irrigation from tubewells is not sustainable in the long term.

Government and Expert Perspectives

Government Incentives:

• Subsidies: The Haryana government is offering incentives for farmers switching to alternative crops and using water-saving techniques like direct seeding of paddy.
• Support: While there is support available, the effectiveness and reach of these measures are mixed, and some farmers have faced issues with insurance claims and financial aid.

Expert Opinions:

• Temporary Solution: Experts caution that while switching to paddy may be a temporary solution, it is not sustainable long-term due to water scarcity and environmental concerns.
• Environmental Impact: Paddy cultivation contributes to higher carbon and methane emissions, which adds to the environmental challenges in the region.

Economic and Industry Implications

Cotton Industry Concerns:

• Reduced Production: Lower cotton production affects the entire supply chain, from textile manufacturers to cottonseed oil and meal producers.
• Potential Recovery: There is hope that reduced PBW infestation this year may lead to a recovery in cotton yields, but the extent of this recovery remains uncertain.

In News:

• Recently, the Union agriculture minister Shivraj Singh Chouhan launched two initiatives — a fund aimed at boosting farm-sector startups, and a single-window portal to process investments — as part of a slew of measures being taken by Prime Minister Narendra Modi-led government in its third term to bolster the farm economy.

Key Details:

• AgriSure is a ?750-crore fund established to support agricultural startups.
• Krishi Nivesh Nidhi is a portal designed to expedite the clearance of project proposals.
• Both initiatives aim to enhance farm incomes.

Awards for Credit Disbursal:

• Scheduled banks were recognized for their credit disbursals under the government’s agriculture infrastructure fund.
• First prize: State Bank of India (SBI).
• Second prize: HDFC Bank.
• Third prize: Canara Bank.

Significance of Agriculture Sector:

• Agriculture contributes 16% to India’s GDP.
• Farmers play a crucial role as both producers and consumers in the economy.

PM Modi’s Strategy to Double Farmers’ Incomes:

• The strategy includes:
  • Increasing output.
  • Reducing input costs.
  • Ensuring profitable prices.
  • Promoting crop diversification.
  • Supporting natural farming.
  • Enhancing value addition to crops.

Details of AgriSure Fund:

• Blended capital fund with a total corpus of ?750 crore:
• ?250 crore each from the Department of Agriculture and NABARD.
• ?250 crore to be raised from financial institutions.
• Managed by NabVentures, a subsidiary of NABARD.
• Provides both equity and debt support to startups and agripreneurs.
• Focuses on high-risk, high-impact activities within the agriculture value chain.

Agriculture Infrastructure Fund:

• Mobilized projects worth ?78,000 crore with ?45,000 crore in financing so far.
• Expanded areas of coverage approved by the Union Cabinet on August 28.
• Aims to create durable farm assets, such as warehouses and processing plants.
• Can be used by agricultural produce marketing committees (APMCs) for market facility improvements.

Funding and Loan Details:

• Part of the ?20-lakh crore stimulus package introduced during the Covid-19 pandemic.
• Total funding of ?1 lakh crore over four years:
  • ?10,000 crore for 2020-21.
  • ?30,000 crore each for the subsequent three financial years.
• Provides medium-to-long term debt financing for rural projects.
• Interest subvention of 3% per annum on loans up to ?2 crore for seven years, with the government covering part of the interest.

Why is it in the News?

In his 50s, Madakam Unga, a Muria tribal farmer who migrated from Chhattisgarh and settled in the dense forests of the Godavari Valley, is still practising ‘deda’, a traditional method of preserving seeds that his ancestors handed over to his family.

What is the Deda Method?

• The Deda Method is an ancestral seed preservation technique passed down through generations.
• This unique method involves the use of natural materials to create a protective, airtight environment for the seeds, ensuring their viability for future planting.

Preservation Process:

• Seeds are packed tightly and wrapped in leaves to form a sturdy bundle resembling a boulder.
• The seed-filled leaf packages are then woven together with Siali leaves (Bauhinia vahlii), locally known as 'addakulu,' forming the distinctive deda structure.
• A deda consists of three layers:
  • The innermost layer contains wood ash spread over Siali leaves.
  • The ash is then covered with lemon leaves, creating a protective casing.
  • Lastly, seeds are preserved within this casing and sealed, with each deda supporting up to 5kg of seeds.

Advantages:

• The Deda Method effectively protects seeds from pests and worms, ensuring their quality and viability.
• Seeds preserved using this technique can be used for cultivation for up to five years.
• This method is particularly useful for preserving the seeds of various pulses, such as green gram, red gram, black gram, and beans.
• By utilizing the Deda Method, farmers can maintain a reliable, diverse collection of seeds, contributing to sustainable agricultural practices and supporting long-term food security.

Facts About Muria Tribe:

• Location: The Muria tribe is found in the states of Telangana, Andhra Pradesh, Chhattisgarh, and Odisha.
• Language: They speak Koya, a Dravidian language.
• Population and Status: In Andhra Pradesh, the Muria, also known as 'Gutti Koyas' by native tribes, are internally displaced people (IDPs) with a population of around 6,600.
• Cultural Practices: The Muria have a progressive outlook on marriage and life.
  • A notable example is the Ghotul, a communal dormitory that provides an environment for Muria youth to explore and understand their sexuality.

Recognition: While most Gutti Koya belong to the Gond or Muria communities, which are recognized as Scheduled Tribes in Chhattisgarh, they lack such recognition in Telangana.

Why is it in the News?

In the wake of evolving consumer preferences, India is at the forefront of an agricultural transformation, pivoting towards sustainable farming with an emphasis on health.

What is Hydroponics?

• Hydroponics is a method of growing plants without soil, utilizing nutrient-rich water as the primary source of essential minerals and elements.
• The technique involves the circulation of nutrient-enriched water through a network of pipes or channels, directly supplying the roots of plants with the necessary nourishment for their growth and development.

Key Features and Benefits:

• Soilless Cultivation: Hydroponics eliminates the need for soil by providing an alternative substrate or a soil-like medium, such as rock wool, perlite, or vermiculite, to support the plants' roots.
• Nutrient Control: This technique enables precise control over the nutrient composition, concentration, and pH levels in the water, ensuring optimal nutrient availability for plants.
• Water Efficiency: Hydroponics recirculates and reuses water, significantly reducing water consumption compared to traditional soil-based farming.
• Space Optimization: Due to the compact nature of hydroponic systems, they can be used in urban areas, greenhouses, and indoor facilities, maximizing yield per unit area.
• Year-round Cultivation: With controlled environmental conditions, hydroponics allows for continuous cultivation, regardless of seasonal changes or weather fluctuations.
• Hydroponics provides a sustainable, efficient, and adaptable approach to agriculture, with potential benefits in resource conservation, food security, and sustainable urban food production.

Hydroponics in India:

• According to a report by Datamintelligence, India’s hydroponic market is poised for a remarkable growth trajectory, with a projected Compound Annual Growth Rate (CAGR) of 13.53% by 2027, outpacing the global industry’s estimated growth of 6.8%.
• This surge underscores the vast potential of hydroponics in meeting the rising demand for sustainable food produce, particularly in metros and tier 1 cities where health-conscious consumers are willing to pay a premium for fresh, safe, and sustainably grown products.
• This transformative shift is not just a response to changing consumer preferences for fresh produce but also an adaptation to the geographical and environmental challenges that face traditional farming methods.

Suitable Regions for Hydroponic Farming:

• Hydroponic farming presents a viable solution in regions where traditional farming faces significant barriers:
  • Areas with Limited Water Supply: Hydroponics drastically reduces water usage, making it ideal for drought-prone areas.
  • Rocky Regions: In places where the terrain is unsuitable for soil-based agriculture, hydroponics offers a practical alternative.
  • Low Soil Fertility Areas: Hydroponics bypasses the need for fertile soil, allowing cultivation in regions with poor soil quality.
  • Demand-Driven Areas: Regions with a high demand for fresh products are perfect for hydroponic farms, catering to health-conscious consumers in urban and semi-urban locales

The Edge with Hydroponic Farming in India:

• Hydroponic farming’s ascendancy in India is attributed to several compelling benefits, underpinned by technological advancements that lower operational costs and facilitate scalability:
  • Versatility in Location: It enables agriculture in environments traditionally deemed unsuitable, such as deserts or cold climates.
  • Controlled Conditions: Farmers have precise control over nutrients, pH, and the growing environment, optimizing plant health and yield.
  • Resource Efficiency: The recycling of water and nutrients significantly cuts down on input costs and environmental impact.
  • Enhanced Growth Rates: Increased oxygen availability accelerates plant growth, leading to quicker harvest cycles.
  • Pest and Disease Reduction: By eliminating soil, hydroponics reduces the risk of soil-borne diseases and pests.
  • Higher Yields: The efficiency and controlled environment of hydroponic systems result in substantially higher crop yields.
  • Labour and Maintenance Savings: The absence of weeding and traditional cultivation reduces labour requirements and costs.
  • Improved Working Conditions: Elevating crops to a more accessible height improves ergonomics for farm workers, further reducing labour costs.
  • No Need for Crop Rotation: Hydroponics eliminates the necessity for crop rotation, simplifying farm management.
  • Reduced Transplant Shock: Plants grown hydroponically experience less stress when transplanted, enhancing survival rates.

Why is it in the News?

Union Cooperation Minister Amit Shah Friday said that the Centre has decided to ensure formation of Primary Agricultural Credit Societies (PACS) in every village by 2027.

Context:

• Union Cooperation Minister Amit Shah recently announced the Centre's commitment to establishing Primary Agricultural Credit Societies (PACS) in every village by 2027, introducing 20 new activities to enhance their profitability.
• Emphasizing the significance of computerization in PACS, Shah highlighted its role in fostering development opportunities.
• He also inaugurated the National Cooperative Database and unveiled the 'National Cooperative Database 2023: A Report' to bridge existing gaps through comprehensive analysis.
  • The database initiative progressed through three phases, including mapping approximately 2.64 lakh societies across agriculture, dairy, and fisheries sectors in the first phase.
• Subsequent phases involved data collection from various federations, banks, and mapping of the remaining 8 lakh primary cooperative societies in other sectors.
• The unveiling revealed over 8 lakh registered societies in the country, connecting more than 30 crore citizens.

What are Primary Agricultural Credit Societies (PACS)?

• PACS are grassroots cooperative credit societies, constituting the final tier in a three-tier cooperative credit system led by State Cooperative Banks (SCBs) at the state level.
• SCBs channel credit to District Central Cooperative Banks (DCCBs) operating at the district level, which collaborate with PACS, directly serving farmers.
• PACS operate as cooperative entities, with individual farmers as members and elected office-bearers from within the community. Villages may host multiple PACS.
• These societies extend short-term and medium-term agricultural loans to farmers for various farming activities.

Number of PACS in India:

• Established since 1904, India currently boasts over 1,00,000 PACS nationwide, engaging a significant member base exceeding 13 crore farmers.
• However, operational PACS stand at only 63,000, indicating the need for enhanced functionality and outreach.

Why are PACS Appealing?

• PACS offer crucial last-mile connectivity, ensuring farmers have access to capital at the onset of agricultural activities.
• They streamline credit extension processes, providing farmers with timely financial support with minimal paperwork, unlike traditional banks known for cumbersome procedures.
• PACS simplify paperwork and administrative tasks, offering farmers collective strength and assistance from PACS office-bearers.
• Unlike individual interactions required with commercial banks, PACS enable farmers to navigate loan processes collectively, reducing reliance on intermediaries.

Challenges Faced by PACS:

• Political influences often overshadow financial prudence within PACS, impacting loan recovery.
• Various committees have highlighted systemic issues within the cooperative system, including low member participation, lack of professionalism, inadequate governance, bureaucratic hurdles, and a workforce with aging and disengaged employees.

Why is it in the News?

The Cabinet Committee on Economic Affairs recently approved ?340/quintal as the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2024-25 at a sugar recovery rate of 10.25%.

What is the Fair and Remunerative Price (FRP)?

• FRP was introduced by the government in 2009 by an amendment to the Sugarcane (Control) Order, 1966.
• It replaced the Statutory Minimum Price (SMP) on the Commission for Agricultural Costs and Prices (CACP) consultation.
• The FRP system assured timely payment to farmers, irrespective of the profit and loss to sugar mills.
  • Further, the new system made it mandatory for sugar mills to pay the farmers within 14 days of delivery of sugarcane.
• Additionally, the FRP system introduced grading on the basis of sugar recovery rate from sugarcane wherein a premium was paid to the farmer on higher recovery and a reduction in rates on lower recovery.
• The FRP is based on the Rangarajan Committee report on reorganising the sugarcane industry.

Factors Considered for Announcing FRP:

• • Cost of production of sugarcane
  • Return to the growers from alternative crops and the general trend of prices of agricultural commodities
  • Availability of sugar to consumers at a fair price
  • The price at which sugar produced from sugarcane is sold by sugar producers
  • Recovery of sugar from sugarcane
  • The realisation made from the sale of by-products viz. molasses, bagasse and press mud or their imputed value
  • Reasonable margins for the growers of sugarcane on account of risk and profits

Effect of the New FRP:

• Sugar production in India was hit hard in the October-December 2023 quarter as production fell by 11.21 million metric tonnes;
  • It was 12 million in the same quarter the previous year.
  • The increase in FRP is going to increase the cost for producers.
• The increased FRP will benefit over five crore sugarcane farmers in the country, however, the increase in production cost could affect end-consumers as well.
• Factors such as FRP hikes, akin to MSP, make it attractive to farmers but also increase prices in the local market as mills pass on that cost to consumers

Why is it in the News?

The central government recently launched a framework to promote voluntary carbon markets in the agriculture sector.

What are Carbon Markets?

• Carbon markets are trading systems in which carbon credits are sold and bought.
• Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.
• One tradable carbon credit equals one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas reduced, sequestered or avoided.
• When a credit is used to reduce, sequester, or avoid emissions, it becomes an offset and is no longer tradable.

Why are Carbon Markets Important?

• Scientists warn that 2°C of warming will be exceeded during the 21st century unless we achieve deep reductions in GHG emissions now.
• Effective action will require concerted and sufficient investment, knowing also that the costs of inaction will be far higher.
• The latest IPCC report finds all countries are falling way short, with financial flows three to six times lower than levels needed by 2030 – and even starker differences in some regions of the world.
• Many countries are turning to carbon markets as a key component in driving and financing the necessary transformation to tackle the climate crisis.

How Many Types of Carbon Markets Are There?

• There are broadly two types of carbon markets: compliance and voluntary.
  • Compliance markets are created as a result of any national, regional and/or international policy or regulatory requirement.
  • Voluntary carbon markets (VCM)– national and international – refer to the issuance, buying and selling of carbon credits, on a voluntary basis.
• The current supply of voluntary carbon credits comes mostly from private entities that develop carbon projects, or governments that develop programs certified by carbon standards that generate emission reductions and/or removals.

Importance of Establishing a VCM Framework in the Agricultural Sector:

• Emission Concerns: Agriculture in India contributes approximately 15% of the nation's greenhouse gas emissions, highlighting the urgent need for mitigation strategies.
• Vulnerability: With around 50% of cultivated land being rainfed and more than 80% of farmers categorized as small or marginal, the sector is highly susceptible to the impacts of climate change.
• National Mission on Sustainable Agriculture (2010): This initiative focuses on promoting adaptation measures such as agroforestry, micro irrigation, and soil health management, which not only reduce emissions but also offer opportunities for carbon sequestration.
• Additional Income Opportunities: Through the implementation of these practices, farmers can potentially generate additional income streams.

Why is it in the News?

 Recently, the Survey of India (SoI) and Genesys International, a prominent Indian mapping company, revealed a strategic collaboration for the implementation of a three-dimensional (3D) digital twin-mapping initiative in India.

About Digital Twin:

• Digital twins are digital representations of physical objects, people or processes.
• They aid decision-making through high-fidelity simulations of the twinned physical system in real-time and are often equipped with autonomous control capabilities.
• These replicas serve as dynamic and detailed counterparts, providing a real-time, data-driven simulation of their physical counterparts.
• The concept of digital twins has gained prominence with the advent of technologies like the Internet of Things (IoT), data analytics, and machine learning.
• In essence, a digital twin continuously collects and processes data from its physical counterpart, offering a comprehensive view of its behavior, status, and interactions.
• This real-time synchronization enables organizations to monitor, analyze, and understand the performance of physical assets or processes more effectively.

Applications:

• Manufacturing Sector: One primary application of digital twins is in the manufacturing sector.
• Manufacturers use digital twins to create virtual models of products and production processes.
• This allows for simulation, analysis, and optimization before physical prototypes are built, leading to reduced development costs and improved product quality.
• Healthcare: In healthcare, digital twins are employed to create personalized models of patients.
• These models, based on individual health data, help in predicting health outcomes, optimizing treatment plans, and advancing medical research.
• Transportation: Transportation industries utilize digital twins for optimizing logistics and predictive maintenance.
• For example, digital twins of aircraft engines can simulate performance under various conditions, aiding in proactive maintenance and minimizing downtime.
• Urban Planning: Urban planning benefits from digital twins by creating virtual models of entire cities.
• This assists in designing and optimizing infrastructure, managing resources efficiently, and planning for future growth and development.
• Industries: In industrial settings, digital twins of production processes enable real-time monitoring, troubleshooting, and optimization, leading to increased efficiency and reduced downtime.

What is the News ?

The National Bank for Agriculture and Rural Development (Nabard) has teamed up with the United Nations Development Programme (UNDP) in India to jointly develop data-driven innovations for the benefit of smallholder farmers in agriculture and food systems.

Facts About:

• This partnership aims to improve the well-being of smallholder farmers by jointly using open-source data for product development, technology transfer, and policy formulation.
• It focuses on enhancing climate resilience in agriculture and involves sharing collaborative digital resources like DiCRA (Data in Climate Resilient Agriculture).
• DiCRA offers access to essential geospatial data related to climate-resilient agriculture and is curated by UNDP and partner organizations.
• This collaboration represents a significant opportunity to harness data and present it as a digital public infrastructure for India's rural farming community.
• Such open data innovations can promote best practices, optimize agricultural investments, and bolster the resilience of smallholder farmers, including women, against various challenges.

What is the News ?

India became the world’s top sugar producer in 2021-2022, surpassing Brazil, but the extensive use of resources in sugar production is depleting rapidly, leading to a potential crisis in the future.

Facts About:

The Factors Behind Excessive Sugar Production

• The phenomenon of India's excess sugar production can be attributed to a confluence of factors, including government policies and measures aimed at promoting sugarcane cultivation. At the heart of this lies the fair and remunerative price (FRP) scheme, a government initiative ensuring that sugar mills pay sugarcane farmers a minimum price, thereby ensuring their fair profits
• State governments have further incentivized sugarcane cultivation through substantial subsidies, which some critics argue are aimed at securing the votes of farmers in politically influential rural regions.
• The repercussions of these policies have led to a significant sugar surplus, driving up exports to record levels. However, this expansionary approach has not escaped global scrutiny. Brazil, Australia, and Guatemala raised objections with the World Trade Organization (WTO), alleging that India's excessive export subsidies and domestic support violate international trade rules. The subsequent ruling against India by the WTO underscored the global ramifications of this sugar surplus.

Addressing the Excess Sugar Production: Ethanol as a Solution

• To mitigate the challenges posed by surplus sugar production, the Indian government has explored alternative avenues, with a focus on diverting excess sugar to ethanol production. Ethanol, a versatile organic compound derived from fermenting sugarcane molasses or sugar, has a range of applications in various industries, from alcoholic beverages to chemicals and cosmetics.
• In the realm of transportation, ethanol-blended petrol (EBP) has emerged as an effective strategy to reduce harmful emissions from vehicles, contributing to reduced crude oil imports and greenhouse gas emissions.
• The government's Ethanol Blended Petrol (EBP) program, initiated in 2003, has made significant strides, aiming to achieve a blending rate of 20% by 2025. Reductions in the Goods and Services Tax (GST) on ethanol have further supported this transition.
• Efforts to channel a substantial portion of sugar towards ethanol production have yielded positive results, highlighting a potential solution to the problem of excess sugar.

Groundwater Depletion and Environmental Consequences

• While India's EBP program has succeeded in reducing certain imports and emissions, it has also unearthed environmental concerns associated with sugarcane cultivation. The intensive water requirements of sugarcane, coupled with over-cultivation, have significantly impacted groundwater resources. This trend is particularly pronounced in India's top sugarcane-growing states, which rely heavily on groundwater for irrigation.
• With sugarcane demanding approximately 3,000 mm of rainfall for optimal growth, regions that typically receive 1,000-1,200 mm of rainfall resort to excessive groundwater extraction from confined aquifers. A startling statistic emerges – the cultivation of 100 kg of sugar necessitates a staggering two lakh liters of groundwater for irrigation. This alarming scenario has escalated concerns, particularly in drought-prone and groundwater-stressed areas, threatening the availability of this vital resource.

Sustainable Solutions and the Path Forward

• To safeguard India's agricultural sector from a looming crisis and ensure its long-term sustainability, a multifaceted approach is imperative. While the allure of financial gains from sugar surplus and exports is undeniable, a shift towards balanced and sustainable agricultural practices is essential.

Diversified Subsidy Schemes

• A crucial step involves reevaluating incentive structures that disproportionately favor sugarcane cultivation over other crops. By introducing comprehensive and fair subsidy schemes for a variety of crops, farmers can be encouraged to diversify their cultivation practices. Such measures can prevent monocultures, promote equitable income distribution, and contribute to more efficient resource utilization.

Environmentally Responsible Cultivation

• The adoption of environmentally conscious cultivation practices holds the key to mitigating the groundwater depletion crisis. Implementing methods such as drip irrigation, which directs water directly to the roots of sugarcane plants, can significantly reduce water consumption compared to traditional flood irrigation techniques. Government support through subsidies for setting up drip irrigation systems can accelerate this transition.

Integrated Water Management

• India's agricultural landscape requires a comprehensive approach to water management, encompassing rainwater harvesting, wastewater treatment, and improved canal irrigation networks. By minimising stress on groundwater reservoirs and exploring alternative water sources for irrigation, the strain on vital resources can be alleviated.

Investment in Research

• Despite significant strides, gaps remain in understanding groundwater availability and distribution. Investing in comprehensive groundwater research and data collection is essential for informed decision-making and sustainable resource management.

Conclusion:

As India assumes a prominent role in the global agricultural arena, the imperative for sustainability becomes increasingly apparent. While the achievements in sugar production are commendable, the nation must navigate the delicate balance between economic gains and environmental responsibility. By reassessing subsidy structures, promoting diversified cultivation practices, and embracing environmentally conscious techniques, India can pave the way for a resilient agricultural sector that not only based on the article: meets domestic demands but also ensures the well-being of future generations.

Source: https://www.thehindu.com/sci-tech/energy-and-environment/india-excess-sugar-production-guzzling-groundwater/article67157121.ece