Economy Current

1. AGENDA
E- National Agri Market
MNREGA: 10 years
Agricultural Insurance in India
NRLM Extention to IAP Districts
Doubling Farmers Income by
2022??
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2. BACKGROUND
Farming: Free Enterprise, Risky
Enterprise.
Farmers at Disadvantage at Factor as
well as Product Market.
Technology resistance
Constraint on Cash Availability
Stressors: WTO, GM Crops, Truant
Rainfall, Semi-feudal structure of
farming society etc leads to Suicide. 2
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3. ELECTRONIC NATIONAL AGRICULTURE MARKET
By : Harveer Singh
Facebook.com/HARVEERSIR

4. 4
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5. 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
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6. Agricultural Marketing
SFAC
AGRICULTU
RE
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

7. 2003 CENTRAL MODEL ACT
Aim 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-commodities
 Legalisation of contract farming
/Harveersir
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8. 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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9. 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
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10. 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
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11. 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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12. 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
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13. BENEFITS OF NAM
Monitoring and regulation of
traders and commission agents;
Completely transparent system
Improvement in the market fee
collection
Reduction in manpower
requirements as tendering /
/Harveersir
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14. 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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15. THANK YOU 
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16. 10 YEARS OF MNAREGA
By: Harveer Singh
harveersinh@gmail.com
Facebook.com/harveersir

17. Year Milestone
2005 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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18. 2008 Name changed to MGNREGA
2011 Wages linked to Inflation
2012 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. 18
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19. It is world’s largest public
Works program.
It is demand driven so
(additional employment and
income)
Local implementation is the
key. 19
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20. 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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21. SOME FACTS ABOUT MNAREGA
44% of all wage payments are being
made on time
More than half of those who
demanded work were women
MNREGA decreased short-term
migration by 10% and had no effect on
long-term migration.
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22. NOMINAL AND REAL EXPENDITURE ON
MNAREGA
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23. NEED FOR
concurrent 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) 23
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24. 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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25. IS 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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26. STANDING 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. 26
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Source: PRS INDIA

27. ISSUES 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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28. 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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29. THANK YOU.
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30. COMPREHENSIVE AGRI INSURANCE
IN INDIA
Harveer Singh
harveersinh@gmail.com

31. 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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32. # AGRI- INSURANCE
Threshold Yield: Average yield
of the preceding 7 or 3 years
Actuarial Basis: Forecasted
Loss
Reference Weather Station
Reference Unit Area
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33. CHALLENGES FOR AGRI INSURANCE INDIA
17-27% losses are post harvest losses
Low Awareness
Different Premiums and High
Premiums
Assessment and conflict of Claims
3 Year yield level
Less finance allocation
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34. (NAIS) or RKBY Modified NAIS
1999
Covers Loanee and Non-
Loanee
Premium=1.5-3% of
Sum Assured.
Implemented at District
Level (Widespread and
Local Calamities)
2010-11
The unit area of insurance is
village panchayat level.
CROP YIELD
coverage 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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36. THE INSURANCE PENETRATION
According 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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37. THE FAILURE
 Along with the unawareness and lack of
penetration.
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38. Agri insurance related
PROBLEMS
PMKBY Solution
17-27% losses are
post harvest losses
Low Awareness
Different Premiums
and High Premiums
Assessment and
conflict of Claims
3 Year yield level
Less 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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39. OTHER DETAILS
uniform 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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40. 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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41. THANK YOU.
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42. SUGGESTIONS FOR IMPROVING AGRICULTURE
Pension for farmers
Kisan Consultation centres
Reducing Risks: Insurance etc
Land Consolidation
Agri-based Industries/ Food
Processing Industries
Use of Technology
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