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