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.