 So welcome to all of you, so today we will be discussing about the chapter 8 of the economic survey, so we have been discussing chapter wise, you already know that or we are discussing every chapter in a very detailed manner, so that every aspect of your prelims and mains examination is covered, I hope that you are liking this lecture, don't worry about that this lecture is lengthy, it's taking more than one hour, but let me assure you that after watching this lecture and going through the PDF, every prelims question and every mains questions which they ask from economic survey will be, you will be able to answer those questions, so don't worry about time, don't be in a hurry to just cover the economic survey in half an hour or one hour, you should have that conceptual clarity and then only you will be able to deliver during the exam, so now we will be starting with chapter number 8, so the remaining chapters after chapter 6, chapter 7 will come back at the end, so now we will study chapter 8 that is agriculture, chapter 9 that is industry and chapter 10 that is the services sector, so these are the 3 broad pillars of the Indian economy or any economy, so in this class we will be going to discuss the chapter 8 that is the Indian agriculture, so let me give you a brief you know essence about how the agriculture sector has been and what basically the survey tries to talk about, so before going into that the survey analysis, let me give you a broad history how Indian agriculture has emerged or has developed, so at the time of independence, if we consider the phase 1 that means during the time of or during 1950s you could say, so during 1950s when India got independent, we had a huge food shortage, we were not able to produce what we needed and because of this we were highly import dependent, we were highly import dependent on food grains, we were highly dependent, import dependent on food grains and this crisis was not because that we did not know how to do agriculture, in fact India has a natural advantage in terms of agriculture but the British era or the colonial empire completely destroyed our agriculture sector by its regressive policies such as huge taxation, zamindari system, uncompetitive trade practices and because of this historical advantage we had in terms of agriculture was completely destroyed and that is why at the time of independence, we were a country which was largely dependent on the import of food grains right, so you might have heard this PL480 scheme, so under this PL480 scheme we used to get food grains imported from United States or at the time of Indochina war in 1962 also US was trying to force India, US was trying to manipulate India or US trying to demotivate India because we were both in the opposite camps you know that India was has been a close ally towards the Soviet and the US was because of that was supportive of China and Pakistan, so we were not able to make our foreign policy independent, the US was trying to you know tell us that boss if you go against us we will stop the supply of food grains and that is why there was a huge urgency which was felt at that point of time that India needs to do something to become self-sufficient because you know the food security is the basic necessity for any nation forget about industries forget about the services sectors forget about anything if you don't have the food to eat how are you going to do anything and hence at that point of time Lal Bahadur Shastri ji told his agriculture minister that you need to fix this you need to ensure that India became self-sufficient and then at that point of time it was M. Swaminatham and the then agriculture minister they went to Mexico and brought the high yield variety seats which led the birth of green revolution which led the birth of green revolution so phase 2 that is the time during 1960s 1960s to 70s here green revolution green revolution happened because of the use of high yield variety seats because of the high yield variety seats so because of this now we were able to produce more than what we were producing earlier so this was a game changer thing and from ship to mouth from ship to mouth the condition was changed to right to food ship to mouth means that earlier if we had to eat something we needed to depend upon the import then only the Indians can eat so this was the state of situation in in an agriculture at that point in time because of green revolution because of the high yield variety seats now we became a self-sufficient in terms of our own food requirement and that is why we started to have this concept of right to food because now no longer we need to depend upon the import in fact if you see the last year that is FY 2022 India's agricultural export has touched its all-time high of 50 billion dollars so this is because of the policy and the technology and the political will all coming together and reforming the agriculture sector so this is how the phase 2 since 1960s and 70s onwards we started to become a food self-sufficient country so this green revolution this green revolution led to increase in food grain production because of first high yield variety seeds but also apart from high yield variety seeds you needed more water more fertilizers pesticides that means chemicals more chemicals because now you're trying to increase the production you're trying to attempt mass production right so you need to adopt these things and then only you can produce more so high yield variety seeds were needed more water was needed and similarly more fertilizers and pesticides were needed so because of this the cost of production was pushed up the cost of production was pushed up so how the farmers will produce using these things if the farmer will think that I'm spending 100 rupees on production what is the guarantee that I will get 110 rupees or 120 rupees right so no farmer will try to put this much of input cost for production if that person is not assured that he will be getting a return which is more than the cost of production and hence to incentivize the farmers that don't worry about the you know price don't worry about what price you will be getting just produce so hence for this the government brought the concept of MSP minimum support price minimum support price in now the government is trying to tell that you will be guaranteed this much of money if you sell this thing to the government for example if I'm a farmer and I showed now that if I will take my food grains to the government then government will be paying this much amount of money to be so because of this so this is the reforms the first you are reforming the production second you're assuring the farmers that don't worry about the cost of production we are there to give you this much amount of money and hence this lead to huge increase in production so green revolution plus MSP so here you are using HYV seats water fertilizers esti sites right and this led to record production ticket wheat and rice so basically at us a mere the basic food grain which you need is wheat and rice you don't need fruits you don't need vegetables so at that point of time the most focus was given on the wheat and rice and hence because of that wheat and rice production so this is how our Indian agriculture was transformed but because of these things now the problem is coming to Indian agriculture so earlier the medicine which was used to treat the disease now the same medicine has led to a new disease now the same medicine has led to a new disease and that is why if you will see the current agriculture sector is again facing a huge crisis although we are a food self-sufficient nation in terms of wheat and rice but that's not all about Indian agriculture what about the fruits what about the vegetables so because of that these things were going good but because of these things now there are new problems which has come what are the new problems first of all high amount of water is required for productions and because of this there's a water crisis the ground water table has been completely sucked up because you know the green revolution was brought in Punjab Haryana in the western UPI to Mahipayi Green Revolution because those states were already having a good irrigation infrastructure so hence the government thought that if I have to introduce green revolution why not let us introduce in Punjab in Haryana because those states already had a good irrigation infrastructure because green revolution requires huge amount of water H by B seats needs more amount of water so hence green revolution was initially brought in Punjab Haryana and western UPI because they already had that amount of good irrigation infrastructure but now because of over exploitation of water in those states so hence you read in the news that Punjab Haryana's ground table which is the ground water table which is the ground water it has been completely exploited so water crisis has come to you now okay second damage to ecology damage to ecology because what happened is that the government started giving subsidies to fertilizers because government is trying to incentivize the farmers that don't worry about anything you just produce but now because of the over usage of fertilizers the soil has been completely destroyed of any self-neutritional value so the quality of the soil the quality of the nutritional content the soil has degraded and hence the farmer has to put more and more fertilizers and pesticides the chemicals that has also been overused and that's why you are seeing the health disease cancer and other things are coming because of these chemicals which are used in farming so damage to ecology and health damage to ecology and health and that's why the government in the recent times is trying to promote organic farming or zero budget natural farming we'll see that but I'll be just overview some job so damage to ecology and health and that needed to be stopped and hence the government is trying to shift towards chemical free agriculture and for that they have brought these schemes then malnutrition you know that the rate of stunting wasting the women who are animic is on rise approximately 35 percent of children's are facing stunting more than 50 percent of women are animic because they are not able to get the required amount of nutrition because you just not need to eat wheat and rice because wheat and rice can never fulfill your entire nutritional requirement which your body needs you also need food you also need eggs you also need vegetables and because of the excessive focus on wheat and rice because you currently MSP is announced for 25 crops but MSP announced you also need to procure that government if 25 crops MSP announced so generally the fci although the government is announcing MSP for 25 crops but generally the procurement is made for wheat and rice and hence farmers has been cultivating only wheat and rice because they know that if they produce fruits or if they produce vegetables the government announces MSP but they are not going to procure it so what is the need of producing it and hence because of excessive focus on wheat and rice the availability of milk vegetables protein requirements has not been fulfilled and hence the problem of malnutrition is growing or has been very much in India it is even more than Bangladesh and Pakistan right so that's why now the government is trying to go for food diversification or agriculture diversification agriculture diversification so now the farmers are being incentivized to produce horticulture crops milk production livestock chicken eggs meat so now the government is trying to diversify the agricultural sector to shift away from wheat rice and move towards fruits and vegetables and other things right fourth productivity India produces a huge quantum of food grains but if you will look at the productivity productivity is equal to production of food grains per unit area so if you will look the production per unit area it is very low it is very low because of poor technology integration that means AI nano sensors and other things poor mechanization lack of economic of scale economy of scale because of land fragmentation right so the productivity of agriculture sector is not being able to improved because the production per unit the production per unit area that is a productivity of our agriculture is very poor as compared to any other country be it China or Brazil and the primary primarily the reason is poor technology integration poor mechanization lack of economy of scale and other things are also there that means soil degradation lack of water availability and other things so hence the government is trying to focus now on how to integrate technology and that's why you will see budget also the government has talked about integration of technology then poor mechanization you see the reason of stubble burning the stubble burning is there because the farmers are not able to get that machine so there's a poor mechanization the lack of economy of scale that means land fragmentation land holding of a farmer is approximately 1.08 hectare so it's very less why because the problem is for example at the time of independence there were 500 families who were practicing agriculture but the families thought that they will educate their children's and they will move to the manufacturing sector for jobs because manufacturing sector is the sector which generates the highest amount of employment so the 500 families given thousand children's suppose one family has given two children's so now there are thousand children's in that village or in that locality or in that district but these families thought that their children's out of thousand children's at least 400 will move to manufacturing sector for jobs but you know that in India manufacturing sector has not been able to perform well as compared to China still our manufacturing sector has not been able to achieve its target that is of 25% of GDP and hence the because of this job crisis in the manufacturing sector most of the children's who thought of shifting to the manufacturing sector or to any other sector of a job they have been continuing in the agriculture sector only and because of that see suppose if 500 families were there that means 250 you know 250 families were there out of 500 people 250 is one couple one mother and one father so 200 families might be there or 500 families let it be 500 families one family has given two children so now on the same 500 parcels of land 500 families so every family will be having one land parcel so now in the same one land parcel two children's are there so that land parcel needs to be fragmented among two children's so suppose I was having 10 hectares now it has come down to 55 hectares for my children now that children again gave birth to two children so now that five hectares got fragmented to 2.5 2.5 so because of the poor state of India's manufacturing sector it is not able to extract the extra workforce of agriculture sector and hence more and more people are continuously being dependent on agriculture sector and that's just led to this land fragmentation and hence the farmer is not able to reap the economy of scale then the other focus of government has been on the other focus of government has been on climate smart agriculture because you know that currently climate change is happening you see that during this month of February because of the extra heat wave the harvest of the ruby crop that is wheat has been affected and we have already discussed in the last chapter what was the reasons of CPI inflation it was because of the food shortage why because of the uneven rainfall so because of climate change the agriculture sector is going to be affected a lot and hence in the current times the government has been focusing on climate smart agriculture right and lastly you know this whole green revolution and MSP was completely government regulated right and the private participation was absolutely negligible it was very less hence the government has brought the three farm bills to ensure that private participation the private capital comes to the agriculture sector and so that it can be reformed you know the better technology can come better capital can come and hence the government tried to brought these three farm bills which was considered as the 1991 moment to Indian agriculture sector because you know that when India was a closed economy we were growing at an average of three percent when India opened up its economy we have been growing at double eight percent and hence it is very important that agriculture sector also sees more and more private participation because if you know the more and more private participation will come then more and more productivity will increase food processing industries you know the conversion from potato to chips one packet of chips is approximately 10 rupees and one kg of potato you can just imagine how much less the price is so the food processing industry is a very cost you know it is a very profit generating industry the farmers are linked to food processing industries then farmers if they're getting 20 rupees for one product they will be getting 50 or 60 rupees for that product but in India we do not have food processing industries because the private participation has been less and hence the government thought that this is the time that the government should take back a step and allow the private sector to participate and unleash the animal spirit in the agriculture sector also but unfortunately these three farm bills were taken away because you know agriculture sector reform lana is a very difficult task because it becomes a source of electoral mobilization and hence the whole topic gets politicized and because of this unfortunately the three farmers were taken so in summary if i have to give this is all the survey talks about so the survey has a scheme mentioned that the entire essence is that that the medicines which were using at the time of independence to ensure that india becomes a self-sufficient country now the same medicine has led to a new disease and hence we need to change the medicine we need to change the track we need to change a new we need to develop a new story and a new outlook of how we are looking forward to reform the indian agriculture so now with this background let us try to see what the survey talks about so agriculture and food management so you can see that this is the first this is the average growth rate of our indian agriculture you will see that agriculture sector has been growing an average annual growth rate of 4.6 percent during the last six years so generally our target is that our agriculture sector should grow at more than 4 percent because if indian agriculture sector grows at more than 4 percent our GDP grows by 8 percent so if 4 percent agriculture sector grows then the GDP will grow at approximately 8 percent and hence we try to get close to this target of 4 percent so it has been there so on an average our agriculture sector has been performing well in the recent times especially during the pandemic you can see it was in the positive trajectory despite all the other sectors coming to a contraction indian agriculture sector has been in the positive zone so that's why it was said that agriculture sector has been resilient during the whole pandemic then during 2021 2022 agriculture exports reach an all-time high of US dollar 50 billion so that was also a great development that once we were a food importing nation and now we are exporting food work of 50 billion US dollar and government of india in recent times has taken many steps which has been consistent with the recommendations given by the committee on doubling farmers income right so this committee is very important so that you can write down in your mails or to seek a direction where the government has taken many steps and that's why our agriculture sector has performed relatively better in the recent years record production of food grain you can see that this is the food grain production okay so it has been constantly increasing it has been constantly increasing our food grain food grain production and then these see this is the oil seeds production so this is the food grain production this is the oil seeds production and this is the pulses production similarly if you will see oil seeds oil seeds means the oil the edible oil which we consume you know that India is the country which is the most import or India is the country which imports the maximum which which which imports the maximum edible oil if indian needs if indian needs 100 liter of edible oil we import 55 liter from abroad and that is why this is again a very problematic thing so every oil the crude oil which we use for energy and this edible oil which we use for personal consumption both oil in india is very important and that's why the government is trying to become art or self-sufficient in this sector also okay so that's why and that's why we have to pay a huge amount of dollar and that's why you know that last year the government has brought this major scheme that is national mission on edible oil national mission on edible oil oil palm palm oil because palm oil is very much edible oil palm oil is mustard, sunflower, safflower so there are many types of edible oil and most of all the oil which we import is palm oil so in palm oil we are import dependent 60 percent but 60 percent of our requirement of the palm oil we import it from abroad okay similarly you have sunflower oil and this sunflower oil so because of agriculture so again one of the reason was this edible oil sunflower oil and because of that we had a huge shortage of sunflower oil and the global price of sunflower oil has increased so this import of edible oil is huge and that's why the government in the recent times has focused that how we can cut down this import and that's why the government has brought this scheme under which we are trying to cut it down right but you can see that our edible oil production that has also been increasing that has been increasing and similarly for pulses also it is increasing so that's why overall agriculture sector has been performing good take care but see this is the production this is not the productivity if you compare the productivity that has relatively been constant so productivity should also increase not only the production right then only the real growth of agriculture sector come if you are able to produce 10 quintal of a crop from one hectare of land and other person is able or other country is able to produce 20 quintal of rice from one hectare of land then the other country automatically becomes much more competitive than ours and hence the government has also been trying to focus on productivity so this we are talking about the production and production has constantly increased for all the food trends so we have seen MSP concept was in 1967 and its work was to incentivize the farmers to incentivize the farmers because you know that under the green revolution you have to use high yield variety seeds and also you have to use huge amount of water chemicals and for that the production cost was increased and hence to incentivize or to assure the farmers of the price the government brought this scheme of MSP take care so MSP your recent times the government has been increasing the MSP for all the crops because the government wants to increase the income of the farmers and hence the government has been increasing the MSP for the crops and especially for the pulses and oil seeds again to incentivize diversification away from rice and wheat rice and wheat and that's why the government is trying to increase MSP more for oil seeds and pulses for how many crops it is introduced for 25 major agriculture commodities each year or it's announced on cabinet committee on economic affairs and who decides or who recommends the government that how much should be the MSP it is done by the CACP that is commission on agriculture cost and price commission on agricultural cost and price so this is the body which recommends the MSP to the government so CACP is a specialized body which is there to recommend the government that how much should be the MSP okay so CACP recommends MSP for 22 crops and FRP FRP means fair and remunerative price fair and remunerative price so sugar can get a word FRP semi-concept and vice crops for MSP 22 plus 123 but I've written it 25 a confusion in every newspaper you will see 23 crops for the MSP but that is not the case the government announces MSP for 25 crops but here is the catch 22 crops for the government announced and sugar for the FRP so that comes around 23 what about the extra to see MSP for Toria and DHAS coconut is fixed on the basis of MSP of mustard seed and copra so its MSP announced automatically its MSP its also MSP so especially the government does not announce the CCA does not announce CCA announces MSP for these two things and automatically the CS the MSP for these crops becomes eligible for these crops also so hence MSP announced for 23 crops but overall how many crops are covered in MSP that is 25 but one more thing MSP announce Karna is a different thing or procure Karna is a different thing procure who does food cooperation of India so that is a body special body is a statutory body which is there to procure the food grains so MSP announce Karengae but it will also procure so there's a problem the government announces but there's no legal binding or legal guarantee that your food will be procured because MSP is not a statutory right given to the farmers MSP is only a guideline MSP is just based on the executive order it does not have any statutory backing that's why the farmer does not have the right to go to the high court and say that see I have produced but government is not procuring this food because you do not have any statutory right it's just a guideline so CACP recommends MSP for these many things so there were seven cereals five pulses seven oil seeds and four commercial crops hopra sugarcane cotton and jute so MSP announced Karthi government procurement karega FCI procurement karne ke liye koi legally binding nahi hai if the FCI wants to procure it will procure and why the FCI will procure pehla what is the logic of procuring this first to ensure food security how because you know that the poor people under the national food security acts get subsidized food drain the government distributes free food drain or a subsidized food drain to the poor people so for that to fulfill that mandate the FCI procures food grains from the farmers at MSP second to ensure a strategic buffer you know that now the wheat the availability of wheat because of the heat wave has reduced and hence the FCI because FCI which works under the government is releasing the wheat into the market because wheat shortage hai your price will increase and hence to counter that increase in the price the government and the government basically the FCI releases the buffer stock so that the price can again be brought down so two purposes ka basically procurement ka pehla to ensure food security that is to distribute food grains at a subsidized cost under the national food security act to the poor people and second to maintain a strategic buffer which could be used at the time of emergency and for this FCI decides how much it needs to procure what it needs to procure it is not legally binding for FCI to procure everything okay so MSP is announced for these 25 crops okay only the FRP for sugarcane has a statute pre-marking okay matlab law ke andar lai a gas baaki cheese is simply based on the executive order to ap dekhe tabi kuch din pehle the farmer kuch maine pehle the farmers were protesting that MSP should also be given a legal right okay so but that is not the case the government has not given that okay then so how the MSP is decided so MSP kaga formula dekhein ye so MSP is equal to ap dekho 1.5 times 1.5 multiplied by the A2 plus FL cost so this is how the MSP is decided okay so what is this A2 plus FL dekhein so sabse pehle aata aapka A2 so A2 is the actual paid-out cost for example if i'm a farmer i need to produce something so for that i need to you know procure seed i need to buy seed i need to ensure that irrigation facility is there i need to buy fertilizer pesticide i need to buy tractor or if i'm hiring a tractor then i have to pay the rent for the tractor so all these are the costs which i need to so these this is nothing but the input cost input cost which the farmer has to pay so all those comes under the A2 now what is A2 plus FL so for example now so that has come around 100 rupees like farmer ne 100 rupees ke raw materials ko karda now the farmer is going to the field ab usko finally the seeds hasko so karna hain other things okay so imagine for example if i'm a farmer now i'm going to sow the seeds put water and other things but i'm not doing it alone sometimes my wife is also doing sometimes my children is also doing but whether i have to pay to them no because they are the part of my family only and they are working to help me to do farming but i don't need to pay them right so A2 plus FL plus if i will hire a laborer to do that job which currently my family is only doing for which i don't need to pay them so vojo extra cost ata agar aap apne family ko hire nahi karte aapne family ko kaam karne ke liye nahi bolte rather you get some other person from outside so for that you have to pay so for example if three persons of my family were working initially so nkoto i don't need to pay suppose one so suppose now those three families are not there so i need to get three other persons from outside to do the work so i need to pay them suppose i need to pay them 10 10 rupees each so this 100 plus 30 this is equal to a2 plus FL so a2 ko matlab input cost ko raw material f2 ko matlab a2 plus jo f2 FL hai aapka FL me kya ad kar rahe hai the cost of the labor which i'm not paying because my family members are only working unko kya pay karengi but if those people are not working then i would have to get the laborers from outside right so that is a2 plus FL now what is c2 so c2 ka matlab ota for example if i'm a farmer i have a land on which i'm doing the farming so if suppose if i don't do the farming and i give that land to as a rent now it's land per cultivation link or manuals land ko rent pededia so i would have got some rent then if suppose i'm investing 1000 rupees for farming i would have otherwise deposited 1000 rupees in a bank and i would have got some interest so if you add all those things rent interest on land right so agar agar mo farming nahin karte aur ham apne land ko de dehte as a rent to some other as a rent i would have got the rent agar na cultivation mein raw materials ko nahin kariktaan other cost i would have not spend then i would have deposited that money into a bank usse mujhe interest ata so if you add those things also over this so that is known as c2 so abhi jo farmers ko mil rahe that is 1.5 of a2 plus FL that is 1.5 into 130 but farmers are demanding 1.5 into c2 to c2 mein kya jaega a2 plus FL plus those rent from the land those interest from the bank ticket so government is giving a2 plus FL wala thing government is not giving 1.5 into c2 so this is the farmers demand and this is actually what the government is giving to the farmer so this is how msp is calculated ye aap ko yaha pe jaana chahi tha ki msp hai kya right then mission for integrated development of horticulture horticulture ka matlab ho hi aap ke paas fruits vegetables spices flowers so now the government is trying to incentivize the farmers to produce this thing only again food diversification we're trying to move away from rice and wheat it's a centrally sponsored scheme this can that we provide quality seeds cluster development post harvest management okay so you can go and read about the scheme so this scheme was mentioned in the survey these are some of the points one some other factual informations you can get from the government's website so go to the government's website and get some basic details about these schemes then about the millets so you can see that india is the largest producer of 40% of the global production millet hamada hota hai and this is a primarily a kharif prop okay millets example ragi jor bajra puttu which are the major states which produces it rajasthan maharashtra karnataka gujrat and madhya pradesh so millet bohot important hai mela so millet se kya hota hai ki amara nutritional status bohot barta hai if you consume wheat or rice and if you consume jor bajra so this is more nutritional nutritious second it is very climate smart but it needs very less amount of water as compared to wheat and rice water ke availability become hai zada fertilizes me is mapo nahi chata hai so that's why it is beneficial for the from the nutritional viewpoint of and also it is a very climate resilient crop that means it less when it requires very low amount of water it requires low amount of fertilizers to millet is liye har tari ke se fayda hai so government a few steps liye 2018 ko national year of millets tha up 2023 main international year of millets over here united nations has declared on the request made by india similarly 2018 mesko nutri cereals ka classification diya gaya tha and sati sa sub mission for nutri cereals is also being implemented then similarly Indian institute of millet research has incubated 250 startups the millet it tari ke ka has now become a very important food drain because we ne dekhata ki india mein kis tari ke sa stunting, basting, anemia iske rate bada hai to sko agar apo control karna hai so you need to improve the quality of food which people are eating and hence the government has focused on millets and similarly millet is also very good for the ecology and from the climate perspective take care then the survey talks about the access to agricultural credit to access to agriculture trade mein kisan credit was scheme was launched agar culture trade bada important hai, ahile kya tha ki banking sectors and other sectors were not there so isli farmers were dependent upon the non-formal sources for example money lenders and other things so those people used to charge exorbitant rate of interest this person purchase person also the also the interest was charged on a compound as a credit card charge hote hai and hence the farmers were under a huge debt trap and that's why in the recent times government is trying to ensure that farmers get the formal credit and hence kisan credit scheme was launched then similarly modified interest subvention scheme under which 3 lakh is given to the farmers at 7 percent aur sati saath up to 7 percent pe bhi 3 percent ka aapko subsidy milega if you are paying back that loan in a timely manner then similarly PM kisan is kind of 6,000 per year is transferred via dbt direct benefit transfer. So iski wede se government is trying that farmers ko formal credit mile informal credit pe wo reline na kare because formal credit is far more supportive and informal credit system is far more exploitative. So isli governments ne kuch in schemes ko lai hai and then similarly you can see that there's a continued increase in institutional credit lakhs karoon to the ko 18.6 lakh karoon institutional trade but the formal credit by banks cooperative societies you know and bfcs and other things. Then farm mechanization so mechanization ne dekha tha agin productivity ko barhane ke liye so government has also brought a submission on agriculture mechanization to see this is a scheme submission on agri mechanization and the which the government is trying to support the state states ko subsidy diya ja raha hai kya please farmers ko because agriculture comes under the stateless agriculture comes under the stateless stateless but agri marketing comes under the concurrent list because so agriculture comes under the stateless isliye scheme ke under state governments ko support kya ja raha hai ki wo zada se zada machines ki availability farmers ke paas kare and sati saa custom hiring centers custom hiring centers ka matlab from where the farmers can go and get a machine on a rental basis. So those are known as custom hiring centers. So under this scheme the government is trying to promote all these things. Then similarly a chemical free india so india mai deko 44.3 lakh organic farmers hai which is highest in the world and then sickim has become the first state in the world to become fully organic and for that the government is bought many schemes paela hai aapka paas parampragad krishi vikas yojina jiske andar organic farming ko promote kya jaara hai jiske andar aapka the government is trying to promote organic farming the financial assistance is given at 50,000 per hectare. Matlab again financial incentives and other incentives are being provided to the farmers aur issi ke andar ek aur scheme launch 2019 mein bhartiya prapratik krishi patadati so this is about organic farming but this is about natural farming what is the difference between organic farming and natural farming natural farming is basically concept which is related to subhas palekar who has given this farming zero budget natural farming so organic farming ne kya hota hai we use vermi compost okay aur tavam ko use karke usse hum lo karthaya organic manures use karthaya but natural farming se hum lo koi bhi external fertilizer use nahi karthe hai unlike the organic farming so organic farming is good but but again the farmer is being dependent upon the organic fertilizers but zero budget natural farming ka matlab kya hota hai ki farmer does not has to depend on any fertilizers at all the farmer simply has to use cow dung cow urine jagri tulsi neel so iss ke baare baan dikhna kis tari ke ze subhas palekar has brought this so this is for organic farming and this is the natural farming so natural farming ka matlab there's no need of any external fertilizers organic farming hum kya hota hai you need our external fertilizers how you need that vermi compost okay but this is not required in the case of natural farming so this scheme has been launched under this scheme and then similarly you have mission organic value chain development for the northeast region so northeast region this was brought under the pandemic times so primary processing so all those things will be created under this and similarly you have so this is the world's largest crop insurance scheme for example if i'm a farmer and i produce hundred i produced you know rice on 10 hectares of land lekin kal monsoon hiyaata hai the monsoon does not come or monsoon comes to the delay or mere saare crop kharaab ho jaata hai so in that case i will be getting the money if i have get if i've got myself registered under the scheme so iss ke through if any kind of external shocks happen any kind of external shock beat earthquake test attack anything environmental ki wajah se rain excessive rainfall or deficit rainfall then in that case i will be insured so this has been brought predaar mantri fasal bima yojna or iss ke under farmers ko kitna pay payment karna parata hai 1.5 percent for rubby crops and 2.5 percent so the total premium is 100 rupees so out of that 100 rupees a farmer has to pay only 1.5 percent of that for rubby crops and 2 percent of the total premium for kharif crops or bakri by the centre as well as the state. So this is about the predaar mantri fasal bima yojna then similarly national agriculture market bila hain hain so national agriculture market scheme ke under you know that break state mein there are apmc mandis or apmc mandis mehi jaate apne grins ko sell kar sakte ho but iss scheme ke under kya tia gaya hai jitne bhi apmc mandis hain state mein all over india un sat apmc mandis ko by the help of technology they have been interlinked suppose now if i am a farmer from bihar or then i can sell that produce to a person who is sitting in the apmc of maharashtra so this is known as the national agriculture market similarly the you have climate smart farming practice so yaha pe the survey has talked about artificial intelligence ke through you are going with crop will prediction ai ke through the ai is a game changer technology so ai ke through you can predict how much the crop will build similarly don'ts ka use kar na hain for monitoring the soil and crop health so this is about how you're going to integrate technology because until unless the technology technology is got is getting integrated with farming we are not able to increase the productivity right so yeh kuch basic aspects hai apko which has been talked about in the survey related to farming uske baat now then the survey talks about the allied sector then the survey talks about the allied sector so allied sector this is also very important sector allied sector right so allied sector me kon kon se sectors aate agriculture and light sectors may it includes livestock forestry fishing and aquaculture okay there has been a higher growth in light sector compared to crop sector jenni jo mora food rent sector hai usse double yeh grow karta hai so that is going at 3% or 4% on average and this is going on average of 8% take care so iss me sab se pere dekteh livestock sector so livestock sector ke anada kyaata animal husbandry and deering take care so animal husbandry maap ka poultry aagya eggs aagya mo sab aagya poora and deering maa maa milk aagya take care so the livestock sector grew at 8% double that of the food drain sector india ranks first in the milk production impact india contributes 20% of the global milk production and this is because of white revolution to desai green revolution tab asi milk sector mein ek white revolution aaya tha at that's why india ranks first in me production it ranks third in egg production and eight in meat production okay so these are some of the factual information with the survey has talked about then this is the chart to ap yaha pe dek sakte ho yeh jo green bala hai this basically gives out of the total agriculture gross value addition suppose the gross agriculture value addition is 100 rupees total kura agriculture sector kura agriculture sector if it contributes 100 rupees uska poora gross value addition hai then 100 rupees mein se 55 comes from the food grid rice, wheat, chicken and other crops and see this one is the livestock this black one so this has been constantly increasing this has been constantly increasing and this has come close to around 30 percent 30 to 35 percent so pehle dek ho it was 65 percent maximum agriculture me jo gross value addition hota tha it was only food grid 65 percent abhi dek ho it has come down to 55 percent and livestock sector has increased to 30 to 35 percent so that's a very good thing fahadar kya ho tha livestock sector se for example if anyone has a buffalo okay so buffalo or any other livestock sector cow sheep goat okay to yeh kya kya kaam kata ek to pehle it provides food second the skin of these things provide fiber wool okay third it gives cow dung so cow dung can be used as a fertilizer or you can sell that to produce energy in a biogas plant then it mostly acts as a asset very important asset for example pandemic aagya and the farmer does not have anything what will he sell he can sell his cow or buffalo and he can get that money so that's why the livestock also acts as a asset for the farmer then supplementary income for example if he has a cow or a buffalo so that's why livestock sector has many multiple benefits and hence the government is trying to promote this thing okay and because of that you see that food grain because it is a very unpredictable sector bohot zyada ish mein problems hai bohot zyada over dependence hai farmers ka food grain bhai so ab usko waha se nikalah jaada hai and that government is trying that more and more people comes towards the livestock sector waha pe bhi kaafi zyada achha potential hai then similarly fishery sector has been doing it seven percent again more than the food grain sector now what are the steps which has been taken by the government what are the steps which has been taken by the government to promote this sector 2020 mein pandemic seme animal husbandry infrastructure development fund agri infrastructure fund tab asik naya fund banaya gaya under the apneba vada package aur ish mein jitle bhi amare animal husband related infrastructures ko banaya jaayenge second national livestock mission jitle bhi livestock's hai ush mein breed improvement kiya jaayega in poultry ship and boat then livestock health and disease control so apne tabhi jo amare ek lumpy disease kar kya aaya tha so all those disease we have to control and for that we need to have vaccination okay so national animal disease control program under which the government is going for hundred percent vaccination of cattle buffalo ship goat and pig against the food and mouth disease so again this is important apjake deko what is food and mouth disease that can come under the disease section of the science and tech complete vaccination of bovine female calves of four to eight months of age against bukulosis dike so ish ke through government is trying to control the animal burden on the farmers because bahod zada ish se los ho jaata ek farmers ko if those diseases infect the animal then similarly for fishery sector the government in 2020 has brought a very big ban reform that was known as pradhan mantri matzya sampada yojana so this is for five years from f by 21 to 2025 the scheme has been brought and similarly of fisheries and aqua infrastructure development fund was being created because all those schemes has been brought to promote the allied sector so that more and more farmers shifts away from the food grain sector towards these sector health control kipar focus kiya gaya hai fishery sector pe bhi focus kiya gaya hai dika rana dekha kis talike se these sectors are doing at 8 percent double that what the food grain sector is growing then then again the survey talks about sahakar se samridhi aapko pata land fragmentation ki bhaja se bahod zada farmers kipars chote chote land parcels hai and because of that the farmers ka jo bargaining power hai farmers ka jo economy of scale hai they are not able to reap that right and because of this huge fragmentation the exploitation of farmer also becomes a great thing hence kis talike se aap farming sector mein cooperative societies ko banao cooperative sector ko promote karo farmer producer organizations ko promote karo so that farmers can come together they sit under the same table and they can bargain effectively so that they can get more price for their produce they can get cheap raw materials which they need they can get more formal credit from the banking sector if they want right so that's why the government is trying to promote cooperative sector jis aapko pata milk mein amul amul is the best example of cooperative movement to aapka milk mein white revolution aaya but unlike the food grain sector jo milk produce farm jo milk farmers to dairy farmers thin ko kaafi zada promote hopain unka income kaafi zada barha because they were working under a cooperative society and that's why they had a huge bargaining power and hence for that the same reason the government is trying to promote cooperative sector in this field also okay so cooperatives hold the key to rural economic transformation there are 8.5 lakh registered cooperatives in the country having more than 29 crore members okay kyaar yeh deko maharashtha has the highest cooperative society take care then what are the steps taken the steps taken na aapke baas the multi-state cooperative societies act was brought in 2002 to regulate this entire cooperative sector then abhi recent lease mein 2022 mein amendment bill bhi aaya isi act mein jis ke through the government is trying to bring electoral reforms because cooperative sector has to work in a democratic manner and hence you need to have electoral reforms threatening governance and transparency in cooperative societies reforming the composition meetings and membership of the jis ke through the amendment bill laaya then government has taken various initiatives to promote primary agricultural credit societies cooperative sector ki baat kare cooperative sector ki aapko pata du banks jo hain bo do tari ke haute hain banks take hota commercial bank and the second one is the cooperative bank cooperative bank mein bhi do tari ke haute hain one you have this urban cooperative bank and the second one is the rural cooperative bank rural cooperative bank mein bhi do tari ke haute hain ek short term aur ek long term if you see the short term to short term aapka three tiered structure hote hain cooperative pehla hoge aapke pa state cooperative bank second district central cooperative bank and third is the tax third is the tax so bands are two types commercial cooperative cooperative then our two types urban ruler ruler is further divided two types short term and long term and short term it is three tiered structure that is state covered cooperative bank district central cooperative bank and primary agriculture credit society so this transfers the fund to this this transfers fund to the this so yei that's why it is known as village level cooperative societies and this has the direct link with the farmers this has the direct link with the farmers last chain of this cooperative society which directly has the connect with the farmers and hence more and more fund should be available to this more and more coverage of pack should be there more and more pack should be there so that more and more farmers can get easy credit so that's why these are the village level cooperative societies in which the farmers themselves are the members or him ko payasat hain saate hain so state cooperative bank transfers the fund to this and this transfers the fund to this so this is how packs acts as the last chain in terms of ensuring the availability of fund to the farmers and that's why the government has promoted primary agriculture credit society and similarly you know that our ministry of cooperation has been created which is currently under the amit Shah the new national cooperation policy is being formulated involving the relevant stakeholder so this has also been brought and then if we will see the food processing sector right the food processing sector so in the last five years ending financial year 2021 the sector is growing at an average of 8.3 percent so the food processing sector has also grown right or food percent sector important because you know example the conversion of potato to chips so this conversion is a very great thing because it's a hota kya the value is being added so it's a farmer's income bhajata bharjata hain a ko pata hain ki jite panjab harana mein farmers hain aur panjab mein khaskar in this pepsi ko hain which produces that they have got a huge contract agreement by the farmers and those farmers sell their potatoes to the pepsi ko and the pepsi ko pays them a huge great amount of money and what they will be getting when they sell that thing to the market and hence food processing sector becomes very important and you know that in India whatever agriculture goods we produce the maximum value addition is approximately 10 percent so if we produce agriculture value worth of 100 rupees we do only value addition that is 10 rupees but if you go in the developed countries the value addition is approximately 100 to 300 percent so india needs to focus on food processing sector second we can improve the nutritional status if we produce good ready to eat food for example we can prepare millet chips so that that can be available to the farmers and then we can also minimize the wastage of the food right we can also minimize the wastage of the food so that all the foods which are being wastaged they can be transferred to the food processing industries so this is about the food processing industries what are the advantages of it and hence the government in the recent times has been focusing on this sector okay now what are the challenges with these sector you can see that the coal chain infrastructure the density of coal chain infrastructure which is a very critical supply because if you produce you need to store it and if you're not having the capacity to store then the food again will be getting wasted so hence you need a good coal chain infrastructure and that has been very poor in this country like India similarly there's an even geographical distribution of coal chain infrastructure so you know that coal chain infrastructure is maximum concentrated only few states like UP and the regions nearby and in other states you don't have the required coal chain infrastructure logistical barriers right it's leading to connectivity such as poor density of highways so if a farmer does not have that highway connectivity how that then he's not able to produce he's not able to get that food grid to the market and then dominance of micro food processing industries micro food that means of small food processing industries which are highly unorganized and because of that they're not able to get good technology integration and hence the value addition is very poor in such kind of food processing industries so what are the steps which has been taken by the government so first is the government has created this ministry of food processing industries then the government has brought this important flagship scheme that is known as the Pradhan Manthri, Kisan, Sampada, Yojna but in 2020 under the Atnirabad Bharat package the government has also brought Pradhan Manthri's prime minister's formalization of micro food processing enterprises so in this scheme basically the government is trying to target two lakh micro food processing industries so that they can be brought from unorganized sector to organized sector or that means they can be formalized so if they get formalized what will happen they can get easy money from the formal sources they can go with better technology upgradation right and hence the government is trying to promote two lakh such micro units and the government is also trying to integrate this one district one product approach so one district one product approach and hence for that district there will be some special micro food processing industries so example if one district has a good amount of production of mango then we can go with mango based food processing industries in such districts so this is the entire logic about this particular scheme similarly the year 2022 the government has brought the PLI scheme production link incentive scheme for the food processing industries right and then in 2021 Krishi Oran 2.0 version has been launched so Krishi Oran basically is about the government is trying to promote that more and more food drinks is able to come via flight from the hinterland such as northeast and other parts to the mainland India right so this is the all about the food processing industries and then the survey basically talks about food security right food security so we have seen that how India has transposed a journey from the ship to mouth to ride to food because of the support measures like green revolution and other things like that and in this direction the up to government in 2013 has brought a very important scheme that is known as national food security act under which every people in India has a right to food right so it secures the right to food it secures the right to food so procurement of food grains from farmers at MSP okay who is going to procure it fci take a distribution of food grants to the vulnerable section vulnerable section means generally those people who are near or lower than BPL and coverage of up to 75 percent of the ruler and 50 percent of the urban population so approximately it covers around 80 crore Indians under this safety net how much quota of food grains every person can get so if you will see antyodhya anayojna so under this scheme there are two categories of people one is the that section which is at the lowest leg so that is known as the priority households and then above that the people are come comes under the antyodhya anayojna so the for the people who are covered under antyodhya anayojna they have been given 35 kg per family per month and for the people who are under the priority households they have been given 5 kg per person per month and how much the person has to pay to get the subsidized food grid so for rice it is 3 rupees for wheat it is 2 rupees and for the course then it is 1 rupees but now you know this year the government has removed this thing also so the now the freeze food grains will be provided for one year so now the person does not have to pay 1 rupees also 2 rupees or 3 rupees the government has been will be providing a free food grains but all those people who are under this act free for one years okay so free for one year they will be providing this free food grains lastly the survey talks about again a very important scheme that is one nation one ration card so one nation one ration card is also very important scheme which has been drawn by the government and you know the government is trying to promote digital india and under digital india government is trying to integrate technology in every sector and one of those one of those thing is the integration of technology in the provision of the food grains also so you know that most of the migrants who are working away from their households they are not able to get the subsidized food grains because the ration card address is the only address where you can get the subsidized food grains so if you are a migrant laborer from bihar and you're living in a state like madhya pradesh you will not be able to get the subsidized food grain in the fair price shops in madhya pradesh because the address which is written in the ration card but now under this one nation one ration card the government has removed those barriers and now any migrant person can get food availability from anywhere there's only one condition that that person needs to integrate its ration card with his adhaar card right and then lastly the survey talks about the food subsidy so see this is the state of food subsidy so the food subsidy bill was higher during the 2020 to 2022 and this is precisely because we have already discussed that because of the government's expansionary fiscal policy under which the government is trying to provide free food grains to the people under the pradhan mantri gharib kalyan anayojna so because of that the food subsidy bill was higher but now you can see that the food subsidy has come down in the recent time so this is all about which the survey has discussed in chapter number eight related to agriculture and food management so basically we have already discussed the basic essence that how the agriculture sector the disease is has transformed the problems which was facing the agriculture sector the time of independence and the problems which the agriculture sector is facing as of now are two completely different problems and hence the government is trying to bring new solutions to address this issue and in this context the survey has talked about various aspects i hope you like this lecture will be meeting you again in the next chapter that is chapter nine where we discuss about the state of india's industrial sector so thank you very much don't forget to like share and subscribe to our channel and press the bell icon to never miss an update