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Farmers Modernization of Agriculture

Objective

  • Modernize agricultural technology, increase productivity, efficiency and crop diversification.

  • Generate income and employment through a paradigm shift that ensures food security while maximizing value addition in agriculture.

Current Situation

  • The existing yield levels of a majority of crops remains much lower than the world average. The predominant causes are low irrigation, use of low quality seeds, low adoption of improved technology, and knowledge deficit about improved agricultural practices. Close to 53 per cent of cropped area is water stressed. Rainwater management practices and services are resource starved. This limits a farmer’s capacity to undertake multiple cropping and leads to inefficient utilization of land resources.

  • Inefficient extension delivery systems have led to the presence of large yield gaps as well. Yield gaps exist at two levels in India. First, there is a gap between best scientific practices and best field practices. The second gap exists between best field practices and the average farmer. There exist significant yield gaps both amongst and within states. Yield gaps have been found to exist in even highly productive states such as Punjab. Closing these gaps provides an opportunity to enhance productivity and incomes significantly. This further implies that states with low productivity (or large yield gaps) have significant potential for catch-up growth in their productivity levels.

  • Demand side factors favour the expansion of area under fruits and vegetables, and livestock products. These enterprises also offer better income. Staple crops (cereals, pulses and oilseeds) occupy 77 per cent of the total gross cropped area (GCA) but contribute only 41 per cent to the output of the crop sector. High value crops (HVCs) contribute an almost similar amount to total output as staples do, but they occupy only 19 per cent of the GCA.1 Research has also shown that diversification to the fruits and vegetables segment is likely to benefit small and medium farmers more than large ones.

  • Over the past few years, new development initiatives aimed at modernising agriculture have been introduced. Pradhan Mantri Krishi Sinchai Yojana (PMKSY) aims to expand irrigation coverage whilst promoting water use efficiency. Area under micro irrigation has grown 2.5 times in the last four years. The second cycle of the Soil Health Card (SHC) scheme is underway, which will focus on job creation and entrepreneurship development through local entrepreneurship models. So far, 3.76 crore SHCs have been distributed under the second cycle.

Constraints

  1. Use of outdated and inappropriate technology is the main reason for low productivity of crops and livestock.

  2. Given the pre-dominance of small and margin- al farmers in Indian agriculture, affordability becomes a significant constraint on technology adoption by farmers.

  3. There exist several bottlenecks hampering on-farm adoption of technology developed in public sector.

  4. Agricultural research in the country is constrained by resource inadequacy, regulations and intellectual property rights (IPR).

  5. Multiple private and public sources supplying different information to farmers create confusion.

  6. A huge gap exists between the demand for and supply of skills in agriculture, hindering diversification, adoption of precision agriculture and on farm post-harvest value addition.

  7. India has not caught up to the rest of the world in terms of technology, which has led to the dominance of inefficient production practices, such as flood irrigation, at the farm level. Renewed focus on on-ground absorption of technology, market intelligence, skills and extension and modernising trade and commerce in agriculture are needed to modernise agriculture in India.

  8. Both production and marketing suffer due to the absence of adequate capital.

  9. Low scale is a serious constraint on the adoption of improved practices and in the input and output market.

Way Forward

Productivity and efficiency

Increase area under irrigation: Irrigation coverage needs to be increased to 53 per cent of gross cropped area (GCA) by 2022-23 The focus should be on increasing coverage through micro-irrigation.

Increase adoption of hybrid and improved seeds: States should take the lead through the following measures:

  • Dynamic seed development plans are required. These may be based on crop wise area (each season separately), seed rate per hectare used, desired/targeted seed replacement rate and crop wise seed requirement. Crop wise require- ment should be worked out based on histor- ical trends, introduction of new varieties and replacement of poor yielding varieties.

  • States should aim to increase the seed replacement rate (SRR) to 33 per cent for self-pollinated crops and 50 per cent for cross-pollinated crops in alternative years.

Productivity and Efficiencey

Productivity and Efficiencey

Increase Variety Replacement Ratio (VRR):
Phase out old varieties of seeds and replace them with hybrid and improved seeds to enhance productivity. The Indian Council of Agricultural Research (ICAR) along with State Agricultural Universities (SAUs) should develop climate resilient varieties of crops suitable for the 128 agro-climatic zones of the country, through farmer participatory plant breeding and adopting farm varietal trials from the third year of the development of the seed.
Strengthen seed testing facilities:
Seed testing facilities need upgradation in terms of both personnel and technical expertise. Regular performance monitoring is required to maintain the quality of test results.
Uniform national procedure for seed licensing:

To tackle the problem of heterogeneity in seed licensing procedures across states, the central government should develop model guidelines for seed licensing and support states in implementing these.

Efficient fertilizer usage:

Strengthen the SHC scheme and include not merely nine but all sixteen parameters in the tests. This will ensure SHC based fertilizer distribution at the ground level. Seed SHCs with the integrated fertilizer management system. Link SHCs with Kisan credit cards and make SHCs mandatory for subsidies. Ensure proper functioning of the SHC labs.

Reorient fertilizer subsidy policy:

The current lopsided fertilizer subsidy policy needs to bring secondary and micronutrients on the same nutrient- based subsidy (NBS) platform as phosphorus (P) and potash (K).

Regulate pesticide use:

Align the pesticide regulatory framework with food safety laws to make adoption broad based. Strengthen extension activities to ensure that best practices reach the average farmer.

Custom hiring centres:

Madhya Pradesh has had demonstrable success with their custom hiring centre model to hasten the pace of farm mechanization. This model should be replicated nationwide by employing rural youth and promoting entrepreneurship.

Subsidies on liquid fertilizers:

Targeted subsidy should be provided on liquid fertilizers to encourage fertigation with micro-irrigation.

Investment subsidies for micro-irrigation:

Rather than power and water subsidies, investment subsidies for micro-irrigation can be provided through the DBT mode.