A plan for the winter crop

Better technology and policies must be deployed to ensure farmers get their due. Abrupt export bans or stocking limits are not the best way forward.

Relevance

  • GS Paper 3 Major crops and cropping pattern.
  • Issues reated to direct and indirect farm subsidies an MSP.
  • Tags: #exportban #agriculture #MSP #currentaffairs #upsc

 

Why in News

In the face of shifting weather patterns, evolving agricultural landscapes, and the ever-present challenge of ensuring food security for a growing population, crafting a comprehensive plan for the winter crop season becomes paramount. As we reflect on the recent Indian monsoon’s performance, which concluded with a noticeable deficit, and prepare for the sowing of rabi crops, it’s evident that the agricultural sector demands a holistic approach.

This approach not only encompasses the cultivation of staple crops like wheat and rice but also addresses the broader dynamics of our food systems. In this context, we delve into critical questions surrounding production estimates, the impact on farmers and consumers, export policies, and the integration of cutting-edge technology to bolster both productivity and resilience. By exploring these facets, we aim to shed light on the path forward for Indian agriculture, one that aligns with the nation’s aspirations to emerge as a formidable force in the global agricultural landscape.

The Indian Monsoon and Its Impact on Crop Planting

  • The Indian monsoon, which typically spans from June to September, has concluded with a 6 percent deficit compared to the long-term average (LPA).
  • This deficit is slightly lower than the normal rainfall range of 96 to 104 percent of the LPA.
  • Despite significant fluctuations, particularly in August, where it was the driest in over a century, the area cultivated for paddy and sugarcane has increased by 1.9 percent and 7.64 percent,respectively, compared to the previous year.
  • However, the area devoted to pulses, notably arhar (tur), has seen a significant decline of 2 percent, leading to concerns about inflation, especially in tur prices.

Preparing for the Winter Season

Sowing Rabi Crops and Ensuring Adequate Fertilizer Supply

  • As Delhi prepares for the challenges posed by stubble burning from paddy fields in October-November, it is also time to plan for the sowing of rabi crops.
  • The Ministry of Agriculture and Farmers Welfare (MoA&FW) recently organized the Rabi Conference on September 26, where discussions centered on strategies for the upcoming season.
  • Authorities assured that there are ample fertilizer stocks to meet the demand for the rabi season. Wheat, a key rabi crop, is susceptible to heatwaves,but the availability of heat-resistant wheat varieties is expected to cover approximately 60 percent of the sown area, up from 45 percent in the previous year.
  • With the release of 2,200 crop varieties in the last nine years, 1,800 of which are climate resilient, the stage is set for another potentially record-breaking rabi crop.

Transitioning from “Production-Centric” to “Food Systems” Thinking

  • In light of these developments, it’s imperative to raise questions and offer suggestions to shift the MoA&FW’s approach from being solely “production-centric” to adopting a broader “food systems” perspective.
  • Notably, concerns arise regarding wheat production estimates, as MoA&FW’s figures for 2021-22 and 2022-23 significantly exceed trade estimates, leading to inflationary market expectations.
  • Furthermore, the dramatic drop in wheat procurement in 2022, combined with export bansdue to geopolitical concerns, resulted in significant retail price pressures and inflation.

Impact on Farmers and Consumers

  • This inflationary pressureand market distortion have had a profound impact on both farmers and consumers.
  • Despite over 800 million people receiving free wheat or rice through the Public Distribution System (PDS), the government’s actions appear to protect urban middle-class consumers at the expense of farmers.
  • This policy approach, characterized as the “plundering of agriculture” by economists, raises questions about its long-term sustainability and its ability to incentivize farmers to increase production.

Export Restrictions and Price Manipulation in Rice

  • Similar issues extend to rice production, where export restrictions, export duties, and minimum export prices aim to suppress market prices to the Minimum Support Price (MSP) level.
  • The Food Corporation of India (FCI)sells rice below its economic cost, potentially causing harm to domestic farmers. These practices raise questions about India’s stance on international trade norms.

Modernizing Crop Monitoring and Policy Implementation

  • As we enter the rabi season, there is a pressing need for better technology and more accurate production estimates.
  • Monitoring crop progress on a weekly, if not daily, basis through advanced technologycan provide crucial data for settling crop insurance claims and timely imports if there’s an anticipated shortfall.
  • Upgrading the traditional patwari-based productionestimate system to a high-tech solution is essential.

In conclusion, achieving India’s potential as an agricultural powerhouse requires a combination of better technology and more equitable policies that ensure farmers receive their fair share. Abrupt export bans and stocking limits should be reconsidered in favor of a more balanced approach that benefits all stakeholders in the agriculture sector.

 

Alternative to export ban, Minimum Export Price (MEP)

About:

MEP is a government policy tool that sets a floor price for the export of specific commodities. It safeguards the domestic market from price fluctuations and supply shortages, addressing concerns about domestic availability, food security, and price stability.

Objectives:

1. Price Stability: Prevents excessive exports to maintain domestic market stability, averting scarcity and price spikes caused by global market fluctuations or aggressive trade practices.

2. Domestic Food Security: Ensures a consistent supply of essential commodities, especially during high-demand periods or production disruptions, reducing the risk of food shortages.

3. Protecting Farmers: Offers a safety net by preventing international prices from falling too low, guaranteeing fair compensation to farmers and sustaining the agricultural sector.

4. Inflation Control: Maintains stable essential commodity prices, contributing to overall inflation control and a balanced macroeconomic environment.

Key Features:

1. Price Floor: Establishes a minimum price for exports to prevent dumping at extremely low prices, benefiting both domestic markets and local producers.

2. Export Control: Regulates export quantities, preventing excessive outflows that could lead to domestic shortages or price spikes.

3. Commodity Specific: Tailored to specific products or categories important for domestic consumption, strategic reasons, or national industries.

4. Periodic Review: Subject to regular assessments and adjustments based on international market trends, domestic production, and demand-supply dynamics, ensuring continued effectiveness.

Sources: Indian Express

Mains Question

Discuss the challenges in policy implication regarding disrupting agriculture pattern in India. Is export ban the best way to ensure food safety? Comment.  250words.