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LATEST NEWS UPDATES | NITI Aayog's three-year action plan on agriculture raises hope as well as concerns

NITI Aayog's three-year action plan on agriculture raises hope as well as concerns

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published Published on Aug 31, 2017   modified Modified on Aug 31, 2017
-Down to Earth

In a major digression from the current discourse on GM crops, the report claimed that the farmers in India have “enthusiastically embraced” GM seeds

For the first time since the five-year plans were scrapped, the NITI Aayog presented the three-year action plan last week. The report, which draws on recommendations made by the Task Force on Agricultural Development and a group of secretaries appointed by PM Modi at the end of 2015, urged the states to be ‘active partners’ in bringing about the turnaround in agricultural sector. The action plan focused on four major areas: ensuring remunerative prices for farmers, boosting productivity, resolving the issue of land ownership and relief measures in the time of disaster.

Marketing reforms

Admitting the fact that agricultural marketing in the country is suffering because of poor infrastructure and price manipulation by large number of intermediaries, the NITI Aayog action plan calls for reforming the APMC (Agricultural Produce Marketing Committees) acts so that farmers are empowered to sell their produce to whomsoever they wish.

To help small farmers, it is important to create aggregators who would collect produce from farmers and sell in competitive marketplaces. On the issue of fragmented agricultural markets in India, it recommended plugging the gaps in eNAM (electronic National Agricultural Market) where cross-market purchases are few and far between. In July, Down To Earth reported these issues and held them responsible for agriculture becoming a loss-making venture.

Minimum Support Price

According to the report, minimum support price (MSP) system has not only “distorted cropping pattern” by ignoring pulses and oil seeds and focussing more on wheat, rice and sugarcane, but also led to depletion of water resources. Instead, it proposes ‘Price Deficiency Payment’ system wherein subsidy would be provided for targeted produce in case price falls below the MSP threshold. All the crops will be considered for price support.

The report proposes that farmers register their crop and acreage sown with the nearest APMC market. In case of plummeting price, they would be entitled to the difference, up to certain percentage so that the quantum of subsidy is in accordance to the restrictions imposed by the World Trade Organization (WTO).

Increasing productivity

To boost farm productivity, the government intends to focus on four factors: shift to high-value farm products, irrigation, seeds and fertiliser and new technology. The three-year action plan calls for accelerating the pace of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and increasing allocation of funds. It also calls for speeding up clearance of river interlinking projects, although questions have been raised on effectiveness of such projects in preventing floods.

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Down to Earth, 28 August, 2017, http://www.downtoearth.org.in/news/niti-aayog-s-three-year-action-plan-on-agriculture-raises-hope-as-well-as-concerns-58558


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