16 September 2024 : Indian Express Editorial Analysis

1. Giving farms their due 

(Source: Indian Express; Section: The Ideas Page; Page: 09)

Topic: GS2– Governance

Context:

The article discusses the early initiatives of the Modi 3.0 government, particularly in agriculture and rural development, following the 2024 parliamentary elections.

Introduction to Modi 3.0 and the First 100 Days

• Even before the parliamentary elections of 2024, the Narendra Modi government had already laid the groundwork for its next term, asking secretaries to prepare a policy agenda for the first 100 days of Modi 3.0.
• Despite a humbling result in the elections, where the Bharatiya Janata Party (BJP) fell short of its target of 370 seats, the enthusiasm for the new government’s initiatives remained high.
• Running a coalition government now, the BJP has had to accommodate the demands of major allies such as N. Chandrababu Naidu and Nitish Kumar, ensuring that governance continues smoothly.
• While the overall focus is on sectors like high-tech manufacturing, particularly chip-making, significant efforts have also been made in agriculture and rural development, areas that directly impact the masses.

New Leadership in Agriculture and Rural Development

• One of the first major changes under Modi 3.0 was the appointment of Shivraj Singh Chouhan as Union Minister for Agriculture and Farmers Welfare, with the additional charge of rural development.
• Chouhan, a former Chief Minister of Madhya Pradesh, is known for his efforts in transforming agriculture in his home state, signaling the government’s intent to prioritize agriculture and rural development.
• Under his leadership, the government made its first significant move by distributing Rs 20,000 crore under the PM-KISAN scheme, continuing the 2019 commitment to provide Rs 6,000 per year to eligible farming households.
• Although there were expectations that the amount would be adjusted for inflation, possibly increasing to Rs 8,000, no such change was made.

Agricultural Policy and New Schemes

• Following the initial budget, which did not see major increases in agri-research and development (R&D) allocations, the government surprised many by approving seven new schemes aimed at addressing various challenges in agriculture.
• These schemes focus on areas like digitalization of agriculture, crop science for food security, horticulture, livestock health, natural resource management, agricultural education, and outreach through Krishi Vigyan Kendras.
• Approximately Rs 14,000 crore has been allocated to implement these programs over the next two to three years. The success of these initiatives, particularly if executed efficiently, could yield significant economic and political dividends.

The Importance of Agricultural Digitalization

• A key focus of Modi 3.0’s agricultural policy is the digitalization of the sector, starting with the identification of farmers. This step is crucial in distinguishing between owner-operators and tenant farmers, the latter of whom often face significant disadvantages.
• Current official estimates suggest that 17% of Indian farmers are tenants, but micro-surveys indicate that the actual figure could be as high as 25-30%. Tenant farmers often lack access to institutional credit, borrowing at exorbitant rates that make farming unprofitable.
• These farmers also miss out on government benefits like PM-KISAN. Solving this problem through proper identification and providing tenant farmers with access to affordable credit could be transformative.
• Digitalization efforts must go beyond farmer identification. They should include data on crops, insurance, fertilizer usage, soil conditions, and food subsidies.
• For instance, linking soil health cards to fertilizer purchases and adjusting subsidies based on actual needs could lead to significant savings and improve resource efficiency.
• The returns on these investments could be more than ten times the cost, making digitalization a highly impactful initiative for improving agricultural productivity and public expenditure efficiency.

Rural Development: Housing and Infrastructure

• On the rural development front, the Modi 3.0 government has announced plans to build 20 million additional houses in rural areas, providing a much-needed boost to the rural economy.
• This initiative is expected to generate jobs for masons, carpenters, electricians, and other laborers while improving the living conditions and dignity of the rural population.
• In addition, the PM-Gram Sadak Yojana (Prime Minister’s Rural Roads Scheme) will receive Rs 75,000 crore in investment, a move expected to have high returns in terms of agricultural GDP growth and poverty alleviation by improving market access for rural communities.

Conclusion: A Boost for Agriculture and Rural Development

• The Modi 3.0 government has made several bold moves in its first 100 days, particularly in the agriculture and rural development sectors.
• While not all expectations have been met, such as the lack of inflation adjustment in PM-KISAN payments and limited increases in agri-R&D funding, the introduction of new schemes and digitalization efforts signal a strong commitment to improving rural livelihoods.
• If properly implemented, these initiatives could bring significant economic returns and political benefits.
• Moreover, investments in rural infrastructure and housing are likely to have a lasting impact on poverty reduction and agricultural growth, giving hope for the future of India’s rural economy.

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PM-KISAN

About: Under the scheme, the Centre transfers an amount of Rs 6,000 per year, in three equal instalments, directly into the bank accounts of all landholding farmers irrespective of the size of their land holdings.It was launched in February 2019. Funding and Implementation: It is a Central Sector Scheme with 100% funding from the Government of India.It is being implemented by the Ministry of Agriculture and Farmers Welfare. Identification of Beneficiaries: The entire responsibility of identification of beneficiary farmer families rests with the State/UT Governments. Objectives: To supplement the financial needs of the Small and Marginal Farmers in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.To protect them from falling in the clutches of moneylenders for meeting such expenses and ensure their continuance in the farming activities.

Practice Question:  Examine the role of digitalization and targeted government interventions in transforming India’s agriculture sector under the Modi 3.0 government. How can these initiatives address the challenges faced by tenant farmers and improve agricultural productivity and efficiency? (250 words/15 m)