Agricultural Policies & Reforms: A Digital Deep Dive

Cultivating Growth: From Land to Market, Towards a Sustainable Future

Explore Key Policies

Introduction

Agriculture is the backbone of the Indian economy, providing livelihood to nearly half of the workforce and ensuring food security for the nation. Agricultural policies and reforms since independence have aimed to address structural constraints, boost productivity, ensure remunerative prices for farmers, and promote sustainable practices. These reforms span land ownership, technological adoption, credit access, market infrastructure, and a recent thrust towards ecological sustainability and farmer welfare. The journey reflects a shift from tackling food scarcity to managing surpluses, improving farmer incomes, and adapting to climate change.

Core Content: Key Policies & Reforms

Land Reforms

Abolition of Zamindari System

Objective: To eliminate exploitative intermediaries between the state and the tiller.

Impact: About 2 crore tenants brought into direct contact with the State. However, zamindars often used legal loopholes to retain large tracts of land.

Tenancy Reforms

  • Regulation of Rent: Aimed to fix maximum rent (e.g., 1/4th to 1/5th of produce). Often not effectively implemented.
  • Security of Tenure: Protected tenants from arbitrary eviction (e.g., Operation Barga in West Bengal). Fear of provisions sometimes led to large-scale evictions.
  • Ownership Rights: Laws to confer ownership rights to tenants on compensation. Success varied.

Ceiling on Land Holdings

Objective: Impose statutory limit on maximum land an individual/family could own and redistribute surplus to landless.

Challenges: Delays, benami transfers, exemptions, and poor implementation limited success in redistribution.

Consolidation of Land Holdings

Objective: Consolidate fragmented landholdings into viable operational units for efficiency.

Status: Compulsory in some states (Punjab, Haryana, UP), voluntary in others. Achieved considerable success in Northern states, lagged elsewhere.

DILRMP & SVAMITVA Scheme

  • DILRMP (Digital India Land Records Modernization Programme, 2008): Computerize land records, digitize maps, clear titles.
  • SVAMITVA Scheme (2020, Ministry of Panchayati Raj): Property validation for rural India using drones. Provides 'Record of Rights' (Gharauni) for 'Abadi' land. Benefits: monetization, bank loans, dispute reduction, GPDPs.

Contract Farming

Concept: Agricultural production under agreement between buyer and producer.

Model Contract Farming Act, 2018: Proposed by Centre to protect interests of both farmers and sponsors. (Context: Repealed Farm Acts also had provisions for this).

Green Revolution

Components

  • High Yielding Variety (HYV) Seeds: Wheat (Lerma Rojo, Sonara 64), Rice (IR-8).
  • Irrigation: Expansion of facilities (dams, canals, tubewells).
  • Chemical Fertilizers & Pesticides: Increased use.
  • Farm Mechanization: Tractors, harvesters.
  • Agricultural Credit & Infrastructure.

Impact: Achievements

  • Food Security: Transformed India from food-deficient to food-surplus. Buffer stocks built.
  • Increased Production & Productivity: Significant rise in yields of wheat and rice.
  • Market Orientation: Shift from subsistence to commercial farming.

Impact: Limitations & Concerns

  • Regional Imbalances: Benefitted primarily irrigated areas (Punjab, Haryana, Western UP, parts of AP/TN). Dryland areas left out.
  • Crop Imbalances: Focus on wheat and rice, neglecting pulses, oilseeds, coarse grains.
  • Inter-personal Inequalities: Benefitted larger farmers more due to capital requirements.
  • Environmental Concerns: Overuse of chemicals led to soil degradation, water contamination, groundwater depletion. Monoculture affected biodiversity.
  • Health Impacts: Pesticide residues in food and water.

Need for Second / Evergreen Revolution

Coined by Dr. M.S. Swaminathan. Focus: Ecologically sustainable agriculture, diversification to other crops and allied activities, inclusive growth covering rainfed/dryland areas, resource conservation (water, soil), climate resilience, nutritional security.

Agricultural Credit

Institutional Sources

  • Commercial Banks (CBs): Priority Sector Lending (PSL) targets.
  • Cooperative Banks: Three-tier structure (State, District, PACS). Significant rural outreach, but inefficiencies.
  • Regional Rural Banks (RRBs): Established since 1975 for rural credit needs.

NABARD (1982)

Apex development financial institution based on CRAFICARD Committee recommendation.

Roles:

  • Refinances banks for agricultural lending.
  • Promotes rural infrastructure (e.g., RIDF).
  • Supervises RRBs and Cooperative Banks.
  • Supports SHGs, FPOs, research.

Kisan Credit Card (KCC) Scheme & Interest Subvention

  • KCC Scheme (1998): Timely access to adequate credit for cultivation, post-harvest, consumption, and investment. Extended to animal husbandry & fisheries since 2019.
  • Interest Subvention Scheme: Government subsidy on short-term crop loans (up to ₹3 lakh) to make credit cheaper (e.g., effective rate of 4% for timely repayment).

Microfinance (SHGs) also plays a crucial role for resource-poor farmers.

Agricultural Marketing Reforms

Agricultural Produce Market Committees (APMCs)

State-level statutory bodies regulating mandis. Intended to protect farmers but face challenges:

  • Monopolistic practices, cartelization by traders.
  • High fees, lack of transparency.
  • Poor infrastructure, market fragmentation.

Model APMC Act (2003, 2017) proposed reforms.

e-NAM (National Agriculture Market, 2016)

Pan-India electronic trading portal to create a unified national market by networking existing APMC mandis. Over 1300 mandis integrated.

Benefits: Transparent price discovery, better farmer returns, wider market access.

Challenges: Lack of uniform assaying, limited inter-state trade, digital literacy, resistance from arthiyas, logistics.

Farmer Producer Organizations (FPOs) & Supply Chain

  • FPOs: Promotion of 10,000 FPOs by 2027-28. Benefits: Collective bargaining, access to finance/tech, value addition, direct market linkages.
  • Supply Chain: Cold Chain (PM Kisan Sampada Yojana) for perishables; Warehousing (WDRA) for scientific storage and negotiable warehouse receipts.

Sustainable Agriculture Practices

Organic Farming

Avoids synthetic fertilizers, pesticides, GMOs.

  • Paramparagat Krishi Vikas Yojana (PKVY, 2015): Promotes cluster-based organic farming with PGS certification.
  • Mission Organic Value Chain Development for North Eastern Region (MOVCDNER).

Zero Budget Natural Farming (ZBNF)

Pioneered by Subhash Palekar. Aims to eliminate external inputs, reduce cost to near zero.

Principles:

  • Jeevamrutha (microbial culture)
  • Beejamrutha (seed treatment)
  • Acchadana (mulching)
  • Whapasa (soil aeration)

Potential: Improves soil health, reduces water use, climate resilient.

IFS & Precision Agriculture

  • Integrated Farming Systems (IFS): Combines activities (crops, livestock, fishery) for resource optimization, waste recycling, enhanced income/resilience.
  • Precision Agriculture: Using ICT (GPS, GIS, drones, sensors) for site-specific management to optimize input use and improve yields (e.g., Soil Health Card Scheme).

Summary Tables

Key Agricultural Schemes/Policies

Area Key Initiative(s) Main Objective
Land Records SVAMITVA Scheme, DILRMP Clear land titles, property rights in rural areas, reduce disputes.
Credit KCC Scheme, Interest Subvention, NABARD functions Access to affordable & timely credit.
Marketing e-NAM, Promotion of FPOs, Model APMC Act Unified national market, better price discovery, farmer empowerment.
Sustainable Practices PKVY (Organic), ZBNF promotion, IFS, SHC Eco-friendly farming, reduce costs, improve soil health, climate resilience.
Income Support PM-KISAN Direct income support to eligible farmer families.
Crop Insurance PM Fasal Bima Yojana (PMFBY) Financial support against crop loss/damage due to unforeseen events.

Prelims-ready Notes

  • Land Reforms: Zamindari Abolition, Tenancy Reforms (rent, tenure, ownership), Land Ceiling, Consolidation, DILRMP, SVAMITVA (MoPR, drone survey for rural property rights/Abadi land).
  • Green Revolution: Components (HYV, irrigation, fertilizers), Impact (food security, regional disparity, environmental issues), Evergreen Revolution (M.S. Swaminathan: sustainable, inclusive, diversified).
  • Agricultural Credit: Sources (CBs, Co-ops, RRBs), NABARD (1982, CRAFICARD, refinancing, RIDF), KCC Scheme (1998: timely credit for cultivation & allied), Interest Subvention (cheaper crop loans).
  • Agricultural Marketing: APMC (state-run mandis, often criticized), e-NAM (2016: Pan-India e-trading portal), FPOs (farmer collectives for bargaining, market access; 10,000 FPOs scheme), Supply Chain (Cold storage/PM Kisan Sampada, Warehousing/WDRA).
  • Sustainable Agriculture: Organic Farming (PKVY-PGS, MOVCDNER), ZBNF (Jeevamrutha, Beejamrutha, Acchadana, Whapasa), Integrated Farming Systems (IFS: diversification, resource efficiency), Precision Agriculture (Tech for input optimization, Soil Health Card).
  • Income Support: PM-KISAN.
  • Crop Insurance: PM Fasal Bima Yojana (PMFBY).

Mains-ready Analytical Notes

Land Reforms: Successes, Failures, and Continued Relevance

  • Successes: Abolition of exploitative intermediary tenures (Zamindari) was a significant step for social justice. Operation Barga (WB) showed success in tenancy security. Consolidation in northern states improved efficiency.
  • Failures/Limitations: Ceiling Laws: Poor implementation due to loopholes, benami transfers, lack of political will, exemptions; very little surplus land redistributed. Tenancy Reforms: Led to concealed tenancies and eviction as landowners feared losing rights; rent regulation largely ineffective. Incomplete Records: Hindered effective implementation, led to disputes.
  • Continued Relevance & Way Forward: Clear Titles (DILRMP, SVAMITVA) crucial for reducing litigation, enabling credit. Formalized and liberal land leasing laws (NITI Aayog’s Model Land Leasing Act, 2016). Addressing Fragmentation: Promote consolidation, cooperative/group farming.

Green Revolution: A Critical Assessment and the Path to an Evergreen Revolution

  • Debate: Economic boon vs. socio-ecological costs. Ensured food security but led to regional disparities, crop imbalances, environmental degradation (soil salinity, groundwater depletion, biodiversity loss).
  • Evergreen Revolution (M.S. Swaminathan): Aims for "increase in productivity in perpetuity without associated ecological harm." Pillars: Soil health, water conservation, climate-resilient crops, INM/IPM, remunerative prices, marketing. Aligns with SDG 2, 12, 13.
  • Contemporary Relevance: Critical due to climate change, resource degradation, and need for nutritional security. Govt initiatives: NMSA, promotion of millets (International Year of Millets 2023).

Agricultural Credit: Deepening Reach and Addressing Distress

  • Trends: Shift from non-institutional to institutional sources, but informal still significant. Rise in agri-credit disbursal but concerns about end-use and reaching the neediest.
  • Challenges: Exclusion (small/marginal farmers, tenants), Indebtedness (crop failures, price volatility, health expenses; farm loan waivers contentious), Regional Disparities, NPAs.
  • Value-added points: Financial Inclusion (Jan Dhan, SHG-Bank linkage, MUDRA), Technology in Credit (digitization of land records, KCC portal, fintech), NABARD’s RIDF for rural infra.

Agricultural Marketing: From Regulation to Facilitation

  • Major Debate: APMC monopoly vs. free market. Repealed Farm Acts tried alternatives but faced protests (MSP concerns).
  • e-NAM Impact: Potential for better price realization, but low inter-state trade. Needs quality assaying, logistics, dispute resolution. (Link to FPOs, GrAMs).
  • FPOs: Game-changer for smallholders. Govt's 10,000 FPOs scheme. Challenges: capital, professional management, market linkages.
  • Need for Integrated Value Chains: Minimize intermediaries, reduce post-harvest losses (30-40% for perishables). PM Kisan Sampada Yojana vital.

Sustainable Agriculture: Balancing Productivity with Ecology

  • Significance: Crucial for long-term food security, farmer resilience, meeting climate goals (India's NDCs).
  • Organic/Natural Farming: Growing demand, export potential. PKVY and ZBNF key. Challenges: certification, initial lower yields, market linkages.
  • Climate-Resilient Agriculture: Drought/flood-resistant varieties, water-use efficiency (micro-irrigation/PMKSY-Per Drop More Crop), agroforestry, crop diversification.
  • Soil Health Card Scheme: Provides nutrient status, recommends fertilizers, improves soil health.

Current Affairs and Recent Developments (Last 1-2 Years)

  • Farm Laws Repeal (Nov 2021): The three controversial farm laws were repealed. Debate on APMC reforms, contract farming, and private market participation continues. Govt formed committee on MSP & natural farming.
  • e-NAM Expansion & Enhancements: Continuous addition of mandis. Introduction of FPO trading module, warehouse-based trading. Platform of Platforms (PoP) under e-NAM launched (July 2022) for logistics, assaying, warehousing, fintech access.
  • Promotion of FPOs: Significant fund allocation and support through NABARD, SFAC for the 10,000 FPOs scheme. Credit Guarantee Fund for FPOs.
  • Climate-Resilient Agriculture Initiatives: Increased budget focus for NMSA. Promotion of millets (Shree Anna) in Budget 2023-24 and International Year of Millets 2023. National Innovations in Climate Resilient Agriculture (NICRA) by ICAR.
  • Digital Agriculture Mission (DAM) (Announced 2021): Aims to create a federated farmers' database, leverage AI, ML, IoT for smart farming (AGRISTACK).
  • Fertilizer Policy: "One Nation One Fertilizer" scheme (Bharat brand) for uniform branding/quality. Continued Nutrient Based Subsidy (NBS) and promotion of nano-fertilizers (e.g., Nano Urea).
  • SVAMITVA Scheme Progress: Ongoing drone surveys and distribution of property cards ('Gharauni') across states.

UPSC Previous Year Questions (PYQs)

Prelims MCQs:

1. UPSC 2017: Consider the following statements:

  1. The nation-wide ‘Soil Health Card Scheme’ aims at expanding the cultivable area under irrigation.
  2. The nation-wide ‘Soil Health Card Scheme’ aims at enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (d)

Explanation: The Soil Health Card Scheme aims to provide farmers with information on the nutrient status of their soil and recommend appropriate dosage of fertilizers to improve soil health and productivity. It does not directly aim at expanding irrigation or bank loan assessment based on soil quality.

2. UPSC 2017: What is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

  1. It is a pan-India electronic trading portal for agricultural commodities.
  2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer: (c)

Explanation: Both statements correctly describe the objectives and features of e-NAM.

Mains Questions:

1. UPSC 2017: What are the major reasons for declining rice and wheat yield in the cropping system? How is crop diversification helpful to stabilize the yield of the crops in the system?

Direction/Value Points: Explain reasons like soil degradation, water scarcity, pest resistance due to monoculture (part of Green Revolution fallout). Then explain how crop diversification improves soil health, breaks pest cycles, utilizes resources efficiently, and provides resilience. Reasons: Monoculture, nutrient depletion, groundwater decline, pest/disease buildup, climate change. Diversification benefits: Soil fertility restoration (legumes), pest control, efficient resource use, risk mitigation, better income.

2. UPSC 2019 type, adapted: India needs to strengthen its land titling system. Discuss the steps taken by the Government in this regard and the challenges involved.

Direction/Value Points: Explain importance of clear land titles. Discuss DILRMP and SVAMITVA scheme. Highlight challenges like complexity of old records, legal hurdles, state-level variations, and lack of awareness. Importance: Reduced litigation, credit access, investment, planned development. Steps: DILRMP components (computerization, survey, registration), SVAMITVA (drone mapping of Abadi). Challenges: Incomplete/inaccurate old records, resistance to change, inter-departmental coordination, cost and time, legal framework for conclusive titling.

Trend Analysis (Last 10 Years)

Prelims Trends:

  • Scheme-Oriented: High focus on objectives, nodal ministries, and key features of government schemes (KCC, PMFBY, SHC, e-NAM, SVAMITVA, PKVY).
  • Conceptual: Basic understanding of terms like Green Revolution, land reforms, APMC, FPOs.
  • Applied Agronomy/Ecology: Questions on sustainable practices, soil health, irrigation types, impact of fertilizers/pesticides.
  • Institutional Focus: Role of NABARD, other credit institutions.
  • Increasingly, questions are analytical, requiring understanding of implications rather than just facts.

Mains Trends:

  • Policy Analysis: Critical evaluation of land reforms, Green Revolution, APMC reforms, agricultural credit policies. Pros, cons, challenges, and suggestions.
  • Problem-Solution Approach: Questions on farmer distress, declining yields, water scarcity, post-harvest losses, and asking for solutions or government measures.
  • Sustainability & Environment: Strong emphasis on sustainable agriculture, organic farming, climate change impact on agriculture, and water conservation.
  • Farmer Welfare: Focus on doubling farmers' income, FPOs, price realization, and social security.
  • Integration with Current Affairs: Questions often reflect ongoing debates (e.g., farm laws, MSP) or recent policy pushes (e.g., millets, natural farming).
  • Shift from purely descriptive to more analytical and opinion-based questions requiring a balanced perspective.

Original MCQs for Prelims

1. With reference to the SVAMITVA scheme, consider the following statements:

  1. It is implemented by the Ministry of Agriculture and Farmers' Welfare.
  2. It aims to provide 'Record of Rights' to household owners in urban slums using drone technology.
  3. It facilitates the monetization of rural residential assets for loans and other financial benefits.

Which of the statements given above is/are correct?

  1. 3 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer: (a)

Explanation:

  • Statement 1 is incorrect; it's by the Ministry of Panchayati Raj.
  • Statement 2 is incorrect; it's for rural inhabited (Abadi) areas, not urban slums.
  • Statement 3 is correct as property cards enable access to financial benefits.

2. Which of the following are key components of the "Evergreen Revolution" as envisioned by Dr. M.S. Swaminathan?

  1. Exclusive focus on HYV seeds of wheat and rice.
  2. Promotion of ecologically sustainable agricultural practices.
  3. Ensuring remunerative prices for farmers.
  4. Intensive use of chemical fertilizers and groundwater extraction.

Select the correct answer using the code given below:

  1. 1 and 4 only
  2. 2 and 3 only
  3. 1, 2 and 3 only
  4. 2, 3 and 4 only

Answer: (b)

Explanation: The Evergreen Revolution emphasizes sustainability (2) and farmer welfare through remunerative prices (3). It moves away from the intensive chemical and water use (4) characteristic of the initial Green Revolution and diversifies beyond just wheat and rice (1).

3. Consider the following pairs regarding agricultural practices and associated government schemes:

  1. Organic Farming : Paramparagat Krishi Vikas Yojana (PKVY)
  2. Micro-irrigation : Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
  3. Direct Income Support : National Agriculture Market (e-NAM)

Which of the pairs given above is/are correctly matched?

  1. 1 only
  2. 1 and 2 only
  3. 2 and 3 only
  4. 1, 2 and 3

Answer: (b)

Explanation: Pair 1 is correct. Pair 2 is correct (PMKSY has a "Per Drop More Crop" component focusing on micro-irrigation). Pair 3 is incorrect; e-NAM is a marketing platform, while PM-KISAN is a direct income support scheme.

Original Descriptive Questions for Mains

1. "While Farmer Producer Organizations (FPOs) hold immense potential to transform Indian agriculture, they grapple with significant operational and financial challenges." Critically examine this statement and suggest measures to strengthen FPOs as vehicles for farmer empowerment. (15 marks, 250 words)

Key Points/Structure for Answering:

  • Introduction: Define FPOs and their role.
  • Potential: Enhanced bargaining, access to markets/finance/tech, value addition, risk mitigation.
  • Challenges: Financial (capital, credit), Operational (governance, management, infra), Market Linkages (stable markets, competition), Social Cohesion, Regulatory/Policy Support.
  • Measures to Strengthen: Dedicated credit lines, capacity building, facilitating market linkages (e-NAM, processors), incubation, tech infusion, promoting federations, simplifying regulations.
  • Conclusion: Crucial for inclusive growth; supportive ecosystem needed.

2. The transition from Green Revolution's production-centric approach to an 'Evergreen Revolution' focusing on sustainability and nutritional security is imperative for India. Discuss the policy shifts and technological interventions required for this transition. (15 marks, 250 words)

Key Points/Structure for Answering:

  • Introduction: Contrast Green Revolution's successes/limitations with Evergreen Revolution vision.
  • Limitations of GR: Ecological degradation (soil, water), crop/regional imbalances, declining returns, micronutrient deficiencies.
  • Pillars of ER: Productivity with ecological integrity, climate resilience, diversification, farmer prosperity, nutritional outcomes.
  • Policy Shifts: Rationalizing input subsidies, promoting balanced fertilization (SHC, INM, IPM), water management (micro-irrigation, watershed), crop diversification (millets, pulses, horticulture, MSP reforms), R&D focus (climate-resilient, bio-fortified), market/price support, revamped extension services.
  • Technological Interventions: Precision agriculture (GIS, GPS, drones, sensors), Biotechnology (stress tolerance, biofortification), ICT (weather, market info), Renewable energy.
  • Conclusion: Holistic strategy involving all stakeholders for successful Evergreen Revolution.