Date post: | 06-Jan-2017 |
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HARVEERSIR for GSSCORE
AGENDA E- National Agri MarketMNREGA: 10 yearsAgricultural Insurance in IndiaNRLM Extention to IAP Districts
Doubling Farmers Income by 2022??
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HARVEERSIR for GSSCORE
BACKGROUNDFarming: Free Enterprise, Risky
Enterprise.Farmers at Disadvantage at Factor
as well as Product Market.Technology resistance Constraint on Cash AvailabilityStressors: WTO, GM Crops, Truant
Rainfall, Semi-feudal structure of farming society etc leads to Suicide.
ELECTRONIC NATIONAL AGRICULTURE MARKET
By : Harveer SinghFacebook.com/HARVEERSIR
HARVEERSIR for GSSCORE
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HARVEERSIR for GSSCORE
BUDGET ANNOUNCEMENTS Budget announcements of 2014 and
2015 on setting up an “Agri-Tech Infrastructure Fund” and on ‘Unified National Agriculture Market’.
The Department of Agriculture & Cooperation has formulated the Central Sector scheme for Promotion of National Agriculture Market through Agri-Tech Infrastructure Fund (ATIF) through provision of the common e-platform.
/Harveersir
Agricultural Marketing
SFAC
AGRICULTURE
APMC
6500
Agriculture is a “State Subject” under the Constitution of India. Union Govt supplements the efforts of State Govt.All States Except Bihar and Kerala, have their respective APMC (Agricultural Produce and Marketing Committees” Act to regulate agricultural Produce sale.
There are 6,500 Agricultural Mandis across the country. The Number symbolizes Agri-Market fragmentation impacting mobility and Prices.
Small Farmers’ Agribusiness Consortium (SFAC) is operating the NAM
HARVEERSIR for GSSCORE
2003 CENTRAL MODEL ACTAim was to attract private investment
in constructing market yards and creating the post-harvest value chain comprising cold stores, warehouses and logistics infrastructure.
Act provides for Private markets, Direct deals between the growers and
end-users of agro-commoditiesLegalisation of contract farming
/Harveersir
GOAL AND MILESTONE TIMELINE (3 PHASES)
585 Mandis
by MARCH 2018.
12 States Joined in starting (14th April 2016)
400 Mandis will be integrated by March 2017
Remaining 185 by March 2018
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HARVEERSIR for G
SSCORE
HARVEERSIR for GSSCORE
FEW MORE FACTS Material flow (agriculture produce) continue
to happen through mandis, an online market reduces transaction costs and information asymmetry.
Department of Agriculture, Cooperation & Farmers’ Welfare (DAC&FW) is meeting expenses on software and its customisation for the States and is providing it free of cost.
DAC&FW is also giving a grant as one time fixed cost subject to the ceiling of Rs.30.00 lakhs per Mandi
/Harveersir
HARVEERSIR for GSSCORE
COMPONENTS OF NAM Harmonisation of quality standards of
agricultural produce and provision for assaying (quality testing) infrastructure in every market to enable informed bidding by buyers.
Common tradable parameters have so far been developed for 25 commodities.
Single point levy of market fees, i.e on the first wholesale purchase from the farmer.
Provision of Soil Testing Laboratories in/ or near the selected mandi to facilitate visiting farmers to access this facility in the mandi itself.
/Harveersir
HARVEERSIR for GSSCORE
1 2 3
A single license to be valid
across the State
Single point
levy of market
fee
provision for
electronic auction as
a mode for price discovery
State’s Obligation
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HARVEERSIR for GSSCORE
BENEFITS OF NAM For farmers, NAM promises more
options for selling their produce and competitive returns.
For local traders, NAM will provide access to larger national market for secondary trading.
For bulk buyers, processers, exporters, NAM will enable direct participation in the local mandi trade, reducing intermediation cost.
Stable prices and availability to consumer.
/Harveersir
HARVEERSIR for GSSCORE
BENEFITS OF NAMMonitoring and regulation of traders and commission agents;
Completely transparent system Improvement in the market fee collection
Reduction in manpower requirements as tendering /
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HARVEERSIR for GSSCORE
IT DOES NOT INCLUDE Direct sale by farmers to processors, or,
contract marketing without bringing produce to mandi;
Even under e-NAM, market committee will continue to hold its monopoly power in terms of offering a platform for sale/purchase;
Removal of legal barriers to entry of orgnised and modern capital and investments into agricultural marketing.
Rationalisation of market fee, commission charges, cess and taxes and development charges
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HARVEERSIR for GSSCORE
THANK YOU
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HARVEERSIR for GSSCOREYear Milestone2005 President Kalam gives assent to NREGA, a
program for livelihood security. Unskilled 100 days of compulsory work to one adult member of the family in rural India.
2006 Launched in Anantpur District (AP). First Phase 200 District covered.
2007 Program extended to 130 additional district and J&K
2008 Remaining areas covered under it. Social Audit starts.Post Office and Bank Account Payment.
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HARVEERSIR for GSSCORE
2008 Name changed to MGNREGA2011 Wages linked to Inflation2012 Budget reduced to 33,000 crore (from 40,000
crore in previous year)Flood Management, Livestock, Fisheries, Sanitation added to Activities.
2014 Govt thought of restricting it to 200 Needy districts only. Drops the idea.
2015 100 to 150 days in Draught hit areas.Budget increased to 34,699 Crore. Assures 5000 more crores if needed.
2016 Happy 10th Years completion.
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HARVEERSIR for GSSCORE
It is world’s largest public Works program.
It is demand driven so (additional employment and income)
Local implementation is the key.
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HARVEERSIR for GSSCORE
SOME FACTS ABOUT MNAREGA India has spent Rs.3.1 trillion on the
implementation of MGNAREGA. created 19.8 billion work days for people It largely led to a reduction of distress. Also helped in increase in rural incomes in
the decade. created assets: small check dams and other
water conservation projects, afforestation and land development projects are of a quality that will stand the test of time
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HARVEERSIR for GSSCORE
SOME FACTS ABOUT MNAREGA44% of all wage payments are
being made on timeMore than half of those who
demanded work were womenMNREGA decreased short-term
migration by 10% and had no effect on long-term migration.
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HARVEERSIR for GSSCORENOMINAL AND REAL EXPENDITURE ON MNAREGA
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HARVEERSIR for GSSCORE
NEED FORconcurrent social audits and
community monitoring will be undertaken to ensure that assets created under the programme are durable and long-lasting.
sustainable individual assets to benefit the poor and vulnerable households (Farm Ponds, Vermi Compost)
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HARVEERSIR for GSSCORE
Generation of employment has seen a sharp decline from the peak of 2,840 million person-days in 2009-10 to 1,550 million person-days last year. (45%. Reduction)
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HARVEERSIR for GSSCOREIS MNREGA HARMFUL TO THE INTERESTS OF FARMERS ? The most prominent accusation is that MNREGA has
led to a shortage of workers available for farm work, and hence, increased agricultural wages.
It is alleged that this has resulted in an increased production costs, and has made farming difficult and unviable (Murthy and Mishra 2012).
BUT MNREGA participation is higher in villages where
there are fewer landless households. A major part of asset creation under MNREGA has
been for the benefit of small and marginal farm holdings, particularly Scheduled Castes/ Scheduled Tribes (SC/ ST)
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HARVEERSIR for GSSCORESTANDING COMMITTEEON RURAL DEVELOPMENT Ensuring livelihood for people in rural areas. Large scale participation of women, Scheduled
Castes and Scheduled Tribes (SCs/STs) and other traditionally marginalised sections of society. SCs/STs account for 51% of the total person-days generated and women account for 47% of the total person-days generated.
Increasing the wage rate in rural areas and strengthening the rural economy through the creation of infrastructure assets.
Facilitating sustainable development, and Strengthening PRIs by involving them in the
planning and monitoring of the scheme.Source: PRS INDIA
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HARVEERSIR for GSSCOREISSUES IN IMPLEMENTATION OF SCHEME: STANDING COMMITTEE Fabrication of job cards: While as many as 12.5 crore households
have been issued job cards out of an estimated 13.8 crore rural households ( as per the 2001 census), there are several issues related to existence of fake job cards, inclusion of fictitious names, missing entries and delays in making entries in job cards.
Delay in payment of wages: Most states have failed to disburse wages within 15 days as mandated by MGNREGA. In addition, workers are not compensated for a delay in payment of wages.
Non payment of unemployment allowances: Most states do not pay an unemployment allowance when work is not given on demand. The non-issuance of dated receipts of demanded work prevents workers from claiming an unemployment allowance.
Large number of incomplete works: There has been a delay in the completion of works under MGNREGA and inspection of projects has been irregular. Implementing agencies were able to complete only 98 lakh works out of 296 lakh works. As Table 2 shows, a large percentage of works remain incomplete under MGNREGA and the work completion rate appears to be decreasing in recent years.
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HARVEERSIR for GSSCORE
CONCLUDING REMARKS Indian agriculture is about seasonality:
Lean/Slack season. MNAREGA works as the supplementary income tool.
Social Equity. Creation of Productive Assets. Bargaining Powers to Rural Workers. Rise of Real rural wages in India: has
the impact of rural distress.
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HARVEERSIR for GSSCORE
THANK YOU.
WHY INSURANCE? Monsoon is Truant and Unpredictable.
The global warming and El Nino type events are already adding to its unpredictability.
Significant Population derives its livelihood from Agriculture.
Overall impact on the economy due to worsening of rural demands.
Farmer’s Suicides.
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# AGRI- INSURANCEThreshold Yield: Average yield of the preceding 7 or 3 years
Actuarial Basis: Forecasted Loss
Reference Weather StationReference Unit Area
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HARVEERSIR for GSSCORECHALLENGES FOR AGRI INSURANCE INDIA17-27% losses are post harvest
lossesLow AwarenessDifferent Premiums and High
PremiumsAssessment and conflict of Claims3 Year yield levelLess finance allocation
(NAIS) or RKBY Modified NAIS
1999Covers Loanee and Non- LoaneePremium=1.5-3% of Sum Assured.Implemented at District Level (Widespread and Local Calamities)
2010-11The unit area of insurance is village panchayat level.CROP YIELDcoverage of Post harvest losses due to coastal cyclone Private sector insurers apart from Agriculture Insurance Company (AIC) of India, are also permitted to implement the scheme
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THE INSURANCE PENETRATIONAccording to Census 2011, India
had 95.8 million farmers. But in the six farming seasons
covering 2011 to 2013, only an average of 12.7 million took crop insurance.
That’s one in about eight farmers
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THE FAILURE Along with the unawareness and lack of
penetration.
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Agri insurance related PROBLEMS
PMKBY Solution
17-27% losses are post harvest lossesLow AwarenessDifferent Premiums and High PremiumsAssessment and conflict of Claims3 Year yield levelLess finance allocation
•Post harvest losses covered.•25% upfront payment•Low Premiums= Rabi and Kharib Premiums•Revenue officer assessment is final•7000 crore allocation•Insurance Inclusion•village level assessment•Use of technology/ Remote Sensing etc
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OTHER DETAILSuniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.
In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
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There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
farmers will get claim against full sum insured without any reduction.
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HARVEERSIR for GSSCORE
THANK YOU.
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HARVEERSIR for GSSCORESUGGESTIONS FOR IMPROVING AGRICULTUREPension for farmersKisan Consultation centresReducing Risks: Insurance etcLand ConsolidationAgri-based Industries/ Food Processing Industries
Use of Technology