Agriculture accounts for 17.5% of India's GDP and about half of total employment (2015-2016). Two-thirds of India's population depends on agriculture and related activities for survival. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay The Government of India plays a vital role in the development of the agricultural sector. The role of government is diverse and varied. Some of the reasons cited for this vital role are self-sufficiency, job creation, supporting small producers to adopt modern technologies and inputs, reducing price instability and improving income of agricultural households. This vital role can take many forms, such as import-export policies and national policies such as price support programs, direct payments and input subsidies to influence the cost and availability of agricultural inputs like the credit, fertilizer, seeds, irrigation, water, etc. Being an agriculture-based country, India has since its independence been trying to improve its agricultural sector by providing subsidies and other forms of measures to improve it. Subsidy India is given in two ways: a) fertilizer subsidy is given by the central government and earlier it also gave diesel subsidy but now it stops giving and b) irrigation subsidy, to electricity, seeds, etc. are granted by the state government. The objectives of subsidies are redistribution effect, intersectoral balance, well-targeted commercial effects, etc. In India, agricultural subsidies are of various kinds. They explain as follows: (1) INPUT SUBSIDY: “Subsidies may be provided through the distribution of inputs at prices lower than the standard market price for those inputs. The magnitude of the subsidies will therefore be equal to the difference between the two prices per unit of input distributed. Different types of subsidies can be cited in this category. These are: (a) Fertilizer subsidy: » Distribution of cheap chemical or non-chemical fertilizers among farmers. This corresponds to the difference between the price paid to the fertilizer manufacturer (domestic or foreign) and the price received from farmers. (b) Irrigation subsidy: “Subsidies to farmers which the government bears for the provision of suitable irrigation facilities. The irrigation subsidy is the difference between the operation and maintenance costs of irrigation infrastructure in the state and the irrigation fees collected from farmers. This can be through the provision of public goods such as canals, dams that the government builds and charges farmers low or no prices for their use. This can also be done using inexpensive private irrigation equipment, such as motor pump sets. (c) Electricity subsidy: “Electricity subsidies involve the government charging low rates for electricity supplied to farmers. Electricity is mainly used by farmers for irrigation purposes. It is the difference between the cost of producing and distributing electricity to farmers and the price received from farmers. State Electricity Boards (SEBs) produce electricity themselves or purchase it from other producers such as NTPC and other SEBs. Energy subsidies “incentivize farmers to invest in pump sets, boreholes, etc. » (d) Seed subsidies:High yielding seeds can be provided by the government at low prices. The research and development activities required to produce such productive seeds are also undertaken by the government, with the expenditure on it being a kind of subsidy given to farmers. (e) Credit subsidy: “This is the difference between the interest charged to farmers and the actual cost of providing credit, plus other costs such as writing off bad debts. The availability of credit is a major problem for poor farmers. They are short of liquidity and cannot access the credit market because they do not have the necessary collateral to obtain loans. To carry out productionactivities, they approach local money lenders. Taking advantage of the helplessness of poor farmers, lenders charge exorbitant interest rates. Often, even farmers with some collateral cannot qualify for loans because banking institutions are largely urban-based and often do not engage in agricultural credit operations, which are considered risky. . The government can take the following steps to resolve these problems: (1) more banking operations in rural areas that will advance agricultural loans, and (2) low interest rates can be maintained through various programs grant, and (3) credit conditions may be applied. be relaxed for the poor. (2) Price Subsidy: “It is the difference between the price of food grains at which the Food Corporation of India purchases food grains from farmers and the price at which PCI sells them either to traders or to the public distribution system. The market price may be so low that farmers will have to bear losses instead of making profits. In such a case, the government can promise to buy the crop from farmers at a price higher than the market price. The difference between the two prices corresponds to the unit subsidy granted to farmers by the government. The price at which the government buys crops from farmers is called the purchase price. Such public purchases also have a long-term impact. This encourages farmers to grow regularly purchased crops. (3) Infrastructure subsidy: “Private efforts in many areas are not sufficient to improve agricultural production. Books, storage facilities, electricity, market information, transportation to ports, etc. are essential to successfully carry out production and sales operations. These facilities are public goods, the costs of which are enormous and the benefits of which accrue to all farmers in an area. No individual farmer will come forward to provide these facilities due to their cumbersome nature and the inherent problems associated with revenue collection (no one can be excluded from their benefit for non-payment). The government therefore takes responsibility for providing them and considering the situation of Indian farmers, a lower price may be charged to poorer farmers. (4) Export subsidies: this type of subsidy is no different from the others. But its objective is different. When a farmer or exporter sells agricultural products in the foreign market, he earns money for himself as well as foreign exchange for the country. Therefore, agricultural exports are generally encouraged provided they do not harm the national economy. Subsidies given to encourage exports are called export subsidies. Some of the subsidy policies are: 1.Nutrient Based Subsidy, 2010 2. New Policy on Seed Development (NPSD) includes Hybrid Seeds, Genetically Modified Varieties, National Seed Corporation. 3. Irrigation policies 4. Energy and electricity policies 1. Nutrient-based subsidy, 2010: “This was introduced in 2010 with the aim of promoting balanced use of fertilizers and limiting subsidies fertilizers. The idea was to set the subsidy based on the nutrients (in kg) present in the fertilizer and to leave the determination of the price to the suppliers. Currently, urea is not covered by the program due to policy constraints. As a result, the subsidized price of urea remained stagnant even as real production costs increased significantly. On the other hand, potassium and phosphorus are covered by the program and a fixed subsidy depending on the nutrient content is given to suppliers and they modify the maximum retail price based on market signals. Secondary elements and micronutrients are also covered by the program. “As a result, the actual use of NPK is in a ratio of approximately 8:3:1, while the recommended use is 4:2:1. This additional use of urea does not provide any additional benefit to the farmer. Instead, it can degrade the soil and harm crops. The productivity and quality of a crop depend on the use of a diverse mixture of macro and micronutrients, which vary from one soil to another. The latest economic survey notes that while urea consumption increased from 59 percent to 66 percent of total consumption in 2012-13 compared to 2010-11, fertilizer consumption per hectare decreased by 140 kg to 128 kg during the same period. Fertilizer subsidy stood at `67,971 crore in 2013-14, an increase of 11 per cent over 2009-10. Much of this was spent on the production and consumption of urea, which was not needed at all. Furthermore, due to excessive use of fertilizers, groundwater is also polluted and the problem of bioaccumulation of chemicals impacts people's health. In Punjab and Haryana, the problem is widespread and groundwater is polluted with arsenic, uranium, fluoride, etc. Plants or crops need about 17 essential elements to survive and grow. If any of these elements are deficient, growth will be stopped or the plant will die. Of these elements, N, P, calcium, magnesium and sulfur are required in relatively large quantities and are called macronutrients. Other elements such as boron, chlorine, copper, iron, manganese, molybdenum, zinc and nickel are required in smaller quantities and are therefore called micronutrients. Macronutrient fertilizers are dominant and their use improves the ability of plants to extract more micronutrients from the soil. 2.New Seed Development Policy (NPSD): “Input subsidies have their roots in the green revolution. At that time, large subsidies were provided for hybrid seeds, fertilizers, pesticides, etc. The main objectives of the subsidies were twofold: the first was to keep the cost of food grains minimum and avoid food inflation, the second was to ensure income security of the farmer. Although this policy has done much to ensure food sufficiency, it nevertheless has many unintended negative impacts. This leads to overuse of inputs because input costs do not represent adequate market costs andfarmers are unable to respond to market signals. They continue to use an asymmetric mix of inputs, with the costs borne by the government. Seeds: “Many schemes such as Rashtriya Krishi VikasYojna, Macro Management Agriculture, Integrated Scheme for oilseeds, pulses, oil palms and maize (ISOPOM); Technological missions for cotton, the National Food Security Mission, etc. provide subsidized seeds. Some of them also offer incentives to invest in seed manufacturing infrastructure and improvements. The New Seed Development Policy (NPSD) notably plans to authorize 100 percent foreign direct investment (FDI) through the automatic route. The objective is also to create a seed bank. The seed production cycle has three stages. Initially, Breeder seeds are developed by the “Indian Council of Agricultural Research” (ICAR), National Seeds Corporation or state agricultural corporations. In the second stage, foundation seeds are developed by NSC, SFC or state seed companies, then certified seeds are produced and distributed to all farmers. Certification is carried out by state agricultural universities or private bodies authorized by the “Indian Council of Agricultural Research”. Hybrid seeds: “Hybrid seeds are obtained by cross-pollination of different varieties of related plants. These seeds played a key role in the green revolution. These seeds combine the desirable properties of two related plants. Thanks to a method of controlled crossing devised by Charles Darwin and Gregor Mendel in the mid-19th century, plant breeders can now produce seeds combining the desired traits of two pure parental lines in the first generation itself. A disadvantage was that these seeds did not regenerate seeds of the same quality. Farmers therefore have to buy new seeds each time. In the case of conventional seeds, farmers could use seeds propagated by current crop. In this sense, hybrid seeds have increased input costs for farmers and multinational companies like Cargill Inc. have established their monopoly in the market. Today, voices are increasingly being raised for and against a variety of genetically modified seeds. Its supporters believe it can rid the world of famine, while its opponents fear negative effects on the environment, biodiversity and health. Genetically modified varieties: “These seed varieties are developed in the laboratory using genetic engineering technologies. In these technologies, genes from different species of organisms (like genes from bacteria and plants) are integrated to modify DNA to achieve the desired characteristic. The bacteria named bacillus thuringiens receives a gene which is incorporated into the DNA of the plant and we get genetically modified organisms like BT corn, BT cotton, Bt-Brinjal, etc. This plant will be protected from pests and will give increased yields. In the United States, genetically modified crops are permitted and account for around 85% of consumption, while in Europe they are now largely banned. In India, commercial cotton production is permitted and field trials are underway for food crops. In 2013, the Supreme Court, in response to a PIL, appointed a committee of technical experts to examine whether the trials should be allowed or not. EC recommended that there be a moratorium on testing until appropriate regulatory and safety mechanismsare established and that BT cultures are approved for their long-term safety. However, this government has authorized trials for certain crops, and has not issued any orders on this subject. The agricultural community's main concern is that companies like Monsanto will exploit their monopolies because seeds are expensive and not regenerative. Recently, GMO cotton seeds supplied by Mahyco (a GMO seed company that has a joint venture with Monsanto) resulted in a crop failure that caused suffering to farmers. National Seeds Corporation: This is a Miniratna company under the Ministry of Agriculture, established in 1963 to produce basic seeds and undertake certification activities. It plays a pivotal role in the development of the seed industry in India. Various programs such as ISOPOM, NFSM and National Horticulture Mission are implemented (partially or fully) under the NSC. It is also involved in the export of seeds, particularly to SAARC and African countries. A SAARC seed bank is maintained in which large quantities of various seeds are kept in inventory so that shortages due to any natural or other calamity can be met. 3. Electricity and water for agriculture: “Farmers benefit from highly subsidized or free electricity for agricultural purposes. Electricity is mainly consumed for pumping groundwater. As 70% of countries have rain-fed agricultural land, electricity becomes the main input for agricultural production. However, abundant and subsidized electricity has led to indiscriminate use of electricity by farmers, resulting in massive waste of electricity and water. In fact, it is the main reason for groundwater depletion. This also opens the way for looting and electricity theft. Power Line Separation: “Power is an electrical cable or group of electrical conductors that carries power from a “larger central source” to one or more secondary or branch circuit distribution centers (to the end user). We still have common supply lines for agriculture. and other sectors in all states except Gujrat. “In Gujrat, Jyotigram Yojna was launched in 2006, which separated the farm feeders from the main feeder. The supply of agricultural feed has been regulated and electricity is only provided 8 to 10 hours per day. Power schedules are pre-declared to farmers. On the main power supply, power is supplied continuously. This development has a double advantage; one is surplus electricity for industry and civilians and the second is stopping the rapid depletion of groundwater. The result is that Gujrat has a surplus power of 2,000 MW which is sold to other states. The success of this project was recognized by the planning commission and it was placed at the heart of power reforms under the 12th Five Year Plan. Rajasthan and Andhra Pradesh are the first states to be deployed. The project will be merged with the 'Integrated Power Development Program', the aim of which is to improve India's sub-transmission and distribution network. Irrigation: “although India is the second irrigated country in the world after China, only a third of the cultivated area is irrigated. Irrigation is the most important agricultural input in a tropical monsoon country like India, where rainfall is uncertain, unreliable and irregular. India cannot make lasting progress in agriculture until more than half of the cultivated area is.