Agriculture and Food Management

Agriculture and Food Management

Importance of Agriculture in India

• Agriculture contributes around 15-18% to India’s GDP but employs nearly 45% of the workforce.
• It plays a crucial role in food security, rural livelihoods, and raw materials for industries.
• The Green Revolution transformed India from a food-deficit nation to a self-sufficient agricultural economy.

Major Challenges in Indian Agriculture

1. Small and fragmented landholdings – Limits economies of scale.
2. Dependence on monsoon – Limited irrigation coverage.
3. Low productivity – Compared to global averages in cereals, pulses, etc.
4. Post-harvest losses – Due to inadequate storage and transport facilities.
5. Price volatility – Due to weak market linkages and global price trends.
6. Overuse of fertilizers and water – Depleting soil health and water tables.
7. Credit constraints – Many farmers rely on informal sources for finance.

Government Interventions in Agriculture

Minimum Support Price (MSP)

• MSP is the price floor set by the government to protect farmers against price crashes.
• Declared for 23 crops every year.
• Ensures remunerative prices and income stability for farmers.

Example:

If the MSP for wheat is ₹2,125 per quintal, the government will purchase at this price even if market prices fall below it.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

• Crop insurance scheme providing compensation for crop loss due to natural calamities.
• Encourages risk management in agriculture.

Soil Health Card Scheme

• Provides farmers with soil health reports to guide balanced fertilizer use and improve productivity.

PM-KISAN

• Income support scheme providing ₹6,000 per year directly into farmers’ accounts.

Food Management System in India

Public Distribution System (PDS)

• Ensures distribution of subsidised food grains to the poor.
• Covers around 80 crore beneficiaries under the National Food Security Act (NFSA).
• Operates through a three-tier system – Central procurement, state distribution, and fair price shops.

Challenges in PDS

• Leakages and diversion of grains.
• Quality issues in food grains distributed.
• Inclusion and exclusion errors in beneficiary lists.

Buffer Stock and Food Security

• The Food Corporation of India (FCI) maintains buffer stock to:
  • Ensure price stability.
  • Meet emergency needs (natural disasters, droughts).
  • Implement welfare schemes.

Recent Initiatives

E-NAM (National Agriculture Market)

• Online platform integrating mandis across India to enable transparent price discovery and direct farmer access to larger markets.

Farmers Producer Organisations (FPOs)

• Farmers form collective groups to improve bargaining power, access to markets, and credit.

Statement-based MCQs

MCQ 1
Consider the following statements regarding Indian agriculture:

1. More than 50% of India’s workforce is engaged in agriculture.
2. Agriculture contributes over 30% to India’s GDP.
3. Indian agriculture is largely dependent on monsoons.

Which of the statements given above is/are correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 1, 2 and 3

MCQ 2
Which of the following are components of India’s Food Management System?

1. Procurement of food grains
2. Storage and buffer stock management
3. Distribution through the Public Distribution System (PDS)

Select the correct answer using the code given below:
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3

MCQ 3
Which of the following schemes provides direct income support to farmers in India?
a) Pradhan Mantri Fasal Bima Yojana (PMFBY)
b) Soil Health Card Scheme
c) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
d) Rashtriya Krishi Vikas Yojana (RKVY)

MCQ 4
Which of the following are advantages of Farmers Producer Organisations (FPOs)?

1. Increased bargaining power
2. Better access to credit
3. Improved market linkages

Select the correct answer using the code below:
a) 1 only
b) 1 and 2 only
c) 2 and 3 only
d) 1, 2 and 3

MCQ 5
Which of the following best describes Minimum Support Price (MSP)?
a) The maximum price at which the government sells food grains to consumers.
b) The floor price at which the government purchases crops from farmers.
c) The price farmers are legally required to sell their produce to the government.
d) The price fixed by private buyers for farm produce.