Unit II

Checking, Vouching and Audit Report

Q1) Explain the role of Indian agriculture in Indian economy. 8

A1) Here, we can complex at the seven vital roles of agriculture withinside the Indian economic system.

1. Contribution to countrywide profits:

From the beginning, agriculture money owed for almost all of our countrywide profits. In 1950-51, agriculture and associated sports accounted for approximately fifty nine percentages of gross countrywide profits. Agricultural proportion is declining regularly with the increase of different sectors, however nevertheless continues a totally excessive proportion as compared to the advanced nations of the world. For example, the percentage of agriculture fell to fifty four percentages in 1960-61, forty eight percentage in 1970-71, forty percentage in 1980-81, and 18.zero percentage in 2008-09, however in UK and US agriculture. Only three percentages make a contribution to the countrywide profits of those nations.

2. Source of livelihood:

In India, greater than two-thirds of the operating populace is without delay engaged in agriculture and additionally relies upon on their livelihoods. It is predicted that presently approximately 66% of our operating populace is engaged in agriculture, 2-three% withinside the United Kingdom and the United States, 6% in France and 7% in Australia. Therefore, our employment sample may be very not unusual place to different growing nation’s withinside the world

3. Food supply:

Agriculture is the most effective essential supply of meals as it often feeds one of this massive populace in our country. It is predicted that approximately 60% of family intake is protected through agricultural merchandise.

4. The function of agriculture in commercial improvement:

Agriculture in India is a first-rate supply of uncooked substances for numerous vital industries in India. Cotton and jute textiles, sugar, vanaspati, cooking oil plantations (i.e. tea, coffee, rubber), and the agriculture-primarily based totally cottage enterprise additionally often acquire uncooked substances without delay from agriculture.

About 50% of the profits generated through production comes from these kind of agricultural-primarily based totally industries in India. In addition, growing ranges of agricultural profits can cause an enlargement of the economic product marketplace, so agriculture can offer a commercial product marketplace.

5. Commercial importance:

India's agriculture performs a totally vital function in each home and overseas alternate. Agricultural merchandise together with tea, coffee, sugar, tobacco, spices and cashew nuts are the primary gadgets of our exports, accounting for approximately 50 percentages of our overall exports. In addition to the produced jute, cotton fabric and sugar additionally account for an extra 20 percentage of the country's overall exports. Therefore, almost 70% of India's exports come from the rural area. In addition, agriculture enables nations earn precious forex to satisfy their country's essential import bills.

6. Sources of Government Revenue:

Agriculture is one of the essential reassets of profits for each the countrywide critical and kingdom governments. The authorities earn a large amount of profits from the boom in land profits. Several different sectors, together with railroads and roads, additionally derive an enormous element in their profits from the motion of agricultural merchandise.

7. The function of agriculture in financial planning:

The outlook for plans in India additionally relies upon closely on the rural area. Good vegetation usually offer the impetus for the country's deliberate financial improvement through growing a higher enterprise surroundings for transportation systems, production, home alternate and greater.

Good vegetation additionally conveys substantial cash to the authorities to satisfy deliberate spending. Similarly, terrible vegetation causes a entire recession withinside the country's enterprise and in the long run to the failure of financial planning. Thus, the rural area performs a totally vital function in nations like India, and the prosperity of the Indian economic system stays closely depending on the rural area. Therefore, from the above analysis, its miles discovered that agricultural improvement is a essential prerequisite for area diversification and financial improvement.

Increasing the marketable surplus of agricultural manufacturing may be very vital in India withinside the following ways:

(i) Increased deliver of meals and uncooked substances at non-inflationary prices.

(ii) Expand the home marketplace for commercial merchandise through enhancing buying potential in rural areas.

(iii) Promote capital switch among departments essential for commercial improvement in addition to infrastructure improvement.

(iv)Increase in forex profits because of a boom in agricultural exports.

Q2) State the progress of Indian agriculture.     12

A2) The following factors spotlight eleven plans which have helped India's agricultural progress.

1. First plan (1951-56):

Immediately after independence, the USA confronted foremost problems: the meals disaster and the lack of commercial uncooked substances which includes jute and cotton.

The foremost motive of the primary plan withinside the agricultural zone turned into to accurate the imbalance resulting from the distribution of the delivery of suitable for eating grains and industrial plants and to enhance infrastructure facilities.

Therefore, agriculture, which includes irrigation and electricity, turned into a pinnacle priority. Therefore, the primary plan assigned the rural zone the best priority. This turned into dedicated to agriculture out of 31 p.c. General deliberate expenditure. However, the preliminary plan set very conservative desires for the manufacturing of maximum plants.

The consequences executed withinside the preliminary plan have been very best for 2 reasons: favourable climate situations and powerful implementation of the making plans program. As a result, we passed our suitable for eating grain manufacturing goal. The real manufacturing of suitable for eating grain turned into approximately sixty six million tons, towards the goal of sixty two million tons.

Efforts to enhance agriculture have unfolded national and feature worried all of the villages in it via network improvement packages. New land regulations have additionally been followed with the intention of disposing of exploitation and growing the safety of ownership.

2. Second plan (1956-61):

However, withinside the 2nd plan, the approach unexpectedly reversed.

The awareness has shifted from agriculture to enterprise for 3 exceptional reasons:

(A) Smooth execution of agriculture at some point of the primary making plans period,

(B) Possibility to fund financial improvement via overseas aid, particularly meals aid, and

(C) Consideration that heavy enterprise is a first-rate zone of financial improvement.

The authorities followed a approach to expand heavy enterprise in keeping with the Soviet industrialization version of the time. As a result, agricultural spending has been decreased from 31p.c to 20p.c. Made with the primary plan.

However, pretty formidable desires were set for the manufacturing of foremost plants. However, agricultural overall performance turned into very disastrous because of the adoption of incorrect strategies, miscalculations and insufficient implementation of maximum packages.

3. Third Plan (1961-sixty six):

Later, planners found out that the improvement approach followed in Plan 2 turned into incorrect. In the rural financial system, the rural recession turned into felt to deliver catastrophe to the financial system as a whole.

Therefore, in Plan 3, the authorities improved its allocation to agriculture. In different words, it turned into 174.five billion rupees in comparison to ninety five billion rupees of the second one plan. However, agriculture's percentage of general deliberate spending remained at 20.

The foremost motive of the plan turned into to attain self-sufficiency in suitable for eating grains and improved agricultural manufacturing to satisfy commercial and export requirements. Many establishments were set up to help improvement sports in diverse fields.

The overall performance of the plan turned into greater or much less best, as a minimum for the primary 4 years. For suitable for eating grains, a file manufacturing of 89 million tonnes turned into executed. But ultimate year's achievements have been disastrous because of the tragic drought of 1965-sixty six and wars (one with China in 1962 and one with Pakistan in 1965).

However, from 1966 to 1967, a brand new approach for agricultural improvement turned into followed.

The foremost planks are as follows.

(A) High Yield Variety Program (HYVP), and

(B) Double cropping program — both are primarily based totally on exotic, high-yielding, short-time period crop varieties.

Other factors of the approach have been new principles in irrigation and water management, adaptive research, and rate ensures to producers. However, agricultural disasters significantly impacted the complete making plans process, delaying the components of the Fourth Plan through greater than 3 years.

4. Plan 4 (1969-74):

Most of the packages followed below the brand new approach endured in Plan 4, however gave a brand new path to agricultural coverage. To attain increase with social justice, agricultural coverage cantered on assisting susceptible and underdeveloped regions of the population.

Technology turned into prioritized because the number one input. In addition to reaching self-sufficiency, the plan expected a large accumulation of buffer inventories and the suspension of concessional imports of meals grains.

Conservative goals were set for agricultural production and realistic allocations were made for agriculture and irrigation. The plan started with a happy note. Edible grain production reached an all-time high of 108 million tonnes between 1970 and 1971. However, the deterioration of the monsoon over the next two years led to poor crop crops, which caused the problem of rising prices.

5. Plan 5 (1974-79):

The Fifth Plan put a new emphasis on agriculture. Growth targets for agriculture and related sectors were fixed at 3.94 p.c. The necessary allocations were made for important programs such as small-scale irrigation, high-yielding seeds and fertilizer distribution.

As with Plan 4, spending on agriculture was 21 p.c. The ambitious target of the agricultural sector for total expenditure in Plan 5 has been revised. However, the performance was unsatisfactory in the first year due to the drop in production.

Due to the agricultural recession, economic growth (measured by per capita income) has reached a vanishing point. However, the performance of the agricultural sector began to improve in the second year as production reached a new record. Nevertheless, the Fifth Plan was shortened by a year by the former ruling party, the Janata administration.

6. Plan 6 (1980-85):

Agricultural growth patterns during the Sixth Plan period took into account the immediate and long-term needs of agricultural products for both domestic consumption and exports. The top priority was assigned to fill the widening gap between actual and potential yields, even at current technology levels, by removing existing constraints. Agriculture and related activities have received sufficient attention through the development of appropriate packages of technology, services and public policy.

7. Plan 7 (1985-90):

Total spending on agriculture, irrigation and rural development was rupees. 48,100 crores or 22p.c. Of total planned expenditure. The 7th plan aimed at an agricultural growth rate of 4p.c. p.a. The edible grain production target was maintained at 3.7 p.c. p.a.

The driving forces behind the main programs of Plan 7 are:

(I) A special rice production program in the eastern region.

(Ii) National Oil Seed Development Project,

(Iii) National watershed development program for rainwater agriculture, and

(Iv) Social forestry.

This sector has witnessed a growth rate of 3.2 p.c. p.a. Plan 7 proposed expanding the irrigated area at a rate of 2.5 million hectares per year.

8. Plan 8 (1992-97):

The Eighth Plan prioritized "growth and diversification of agriculture to achieve food self-sufficiency and create surplus for exports". Investment in agriculture, irrigation and related sectors far exceeded previous plans.

The share of public and private sector investment in the 8th Plan in Agriculture and Rural Development was 22 p.c. In the 7th plan of total investment compared to 11.23 p.c. The 8th plan aims to achieve the agricultural growth rate of 4p.c. During the planning period. During the Eighth Plan, great efforts were made to increase the production of rice, legumes and oil seeds.

During the planning period, there was a shortage of investment in all sectors, including agriculture, with actual investment of only 59p.c. Of the planned investment. Nevertheless, agriculture recorded a growth rate of 4.7 p.c. However, in the final year of the plan, edible grain production reached a record level of 199.3 million tonnes, against the target of 210 million tonnes.

9. Plan 9 (1997-2002):

The purpose of Plan 9 was to achieve agricultural-led growth. For the first time since the 1960s, the Planning Commission focused on agriculture rather than industry in Plan 9. My goal was to grow at 4.5p.c. p.a. during the 9th plan period. It envisioned 230 million tonnes of food production compared to the 1990 "million tonnes" achieved in 1996-97.

The actual production of edible grains was well below the target production. The actual production was 212 million tons, a shortage of 18 million tons. In the case of oil seed production, the performance was disappointing. Anyway, the food crisis did not occur due to the accumulation of a huge buffer stock of food grains.

To achieve this growth rate, the Planning Committee recommended four strategies, including a viable minimum support price and an input subsidy policy. The public sector was allocated Rs 8, 75,000. Agriculture is a whopping 19.4 p.c. Total spending.

The actual increase fee of agriculture and associated sports fell brief of even the revised objectives of three.9%. The increase fee found out for 1997-2002 become 2.1 percentage. The reform procedure had didn't stimulate our agricultural area.

10. The Tenth Plan (2002-07):

The Ninth Plan skilled a slowdown withinside the increase ability of the financial system that needed to be reversed withinside the Tenth Plan. Regarding the sectoral allocation of public sources, agriculture did now no longer obtain excessive precedence withinside the Tenth Plan.

The allocation of the Tenth Plan for agriculture, irrigation, etc. It amounted to Rs three.05.1/2 crore, and growth of 51.four percentage. At the Ninth Plan. His intention becomes to enhance the increase fee of agriculture via way of means of 2.1 percentages. Withinside the common reached for the duration of the Ninth Plan at four percentages. All through the length of the Tenth Plan .

The Tenth Plan registered an increase fee of 2.three percentage. (Due to monsoon shortages. Poor rains in 2002, 2004 and 2006 have led to (i) negative agricultural increase, (ii) a discount of agriculture's percentage of GDP of 23.eight percentage in 2002- 03 to 20.five percentage in 2006-07.

Economic Survey, 2006-07 says: “The structural weaknesses of the rural area are meditated in a low degree of public funding, depletion of the yield ability of recent excessive-yielding types of wheat and rice, unbalanced use of fertilizers, low substitute fee of seeds, insufficient incentives The device and the addition of postharvest cost manifested itself in mediocre increase for the duration of the brand new millennium. "

11. The Eleventh Plan (2007-12) and the Second Green Revolution:

Against the heritage of the depressing overall performance of Indian agriculture for the duration of the Tenth Plan, a better annual increase fee of four percentages. Pennsylvania. To attain the goal GDP increase fee of 10 percentages for the duration of this plan length is urgently wanted withinside the cutting-edge plan.

To attain the sort of increase fee, what is wanted is an development withinside the scale of operations and the best of the rural reforms brought via way of means of country governments and diverse agencies. These reforms must intention on the green use of diverse agricultural sources and the conservation of soil, water and strength in a sustainable manner and in a holistic framework.

However, this plan locations an emphasis on enterprise funding to pressure agricultural increase. The cognizance files perspectives settlement farming as a way of attracting company funding in Indian agriculture.

The Eleventh Plan Approach Document has highlighted this holistic framework and mentioned the subsequent techniques to be followed for the duration of the Eleventh Plan length:

(i) Double the increase fee of irrigated areas;

(ii) Improve water management, water catchment, and watershed development;

(iii) Diversification of plants into excessive-cost products (fruits, vegetables, flowers, herbs, and spices) without worrying meals security;

(iv) Facilitate get right of entry to to credit score at low-priced rates,

(v) Redirect interest to land reform issues.

Areas of thrust of the Eleventh Plan associated with agriculture and irrigation coverage:

(i) Guarantee meals security;

(ii) State-unique agricultural guide techniques and programs;

(iii) Better seed production,

(iv)  Development of present day markets, etc.

The Approach Document of the Eleventh Plan helps the tips of the National Commission of Farmers associated with the care and development of soil health, water collection, credit score and coverage reform, era delivery, insured and remunerative marketing, etc.

Finally, this Focus file requires a "second" inexperienced revolution that includes enhancing agricultural productiveness in a sustainable manner, without destructive the ecology.

Q3) Explain the causes of low productivity in agriculture in India?  12

A3) The following factors spotlight the fourteen primary elements answerable for low productiveness in agriculture in India.

1. Small length of farms:

Agricultural productiveness is low because of the small length of the farms. In fact, the small length of the farm does now no longer offer worthwhile employment for farmers.

In our USA the common length of farms is 1.eight hectares even as in advanced international locations which includes America it's far 122 hectares.

Apart from this, subdivision and fragmentation of farms is some other impediment withinside the manner of low agricultural productiveness. Scientific cultivation with the state-of-the-art strategies is nearly not possible in those small farm sizes.

2. Vicious cycle of poverty:

To a extra extent, the vicious cycle of poverty is likewise answerable for the negative overall performance of agriculture.

The vicious cycle of poverty takes the subsequent shape of the rural sector:

Crucial deficiencies in Indian agriculture are associated with land, capital and management, etc., which in flip hampers agricultural productiveness.

3.  Indebtedness:

Another purpose for low agricultural productiveness is the indebtedness of farmers. To carry out the social ceremonies, a farmer has to borrow from a lender at a totally excessive hobby rate. Bad loans do now no longer growth his earnings and he constantly stays in debt. Consequently, the farmer does now no longer take benefit of incentives to enhance agricultural manufacturing.

4. Inadequate irrigation centers:

The Indian farmer nearly relies upon at the climatic situations for irrigation. The monsoons are irregular. Only some farmers take benefit of irrigation centers from diverse reassets which includes canals, tube wells, etc. Also, those centers are in a few regions and while to be had they're now no longer absolutely utilized. The end result is that the product is of negative excellent and outcomes in low productiveness.

5. Lack of ok financing:

The availability of financing is the muse of all industries. The delivery of finance is insufficient withinside the case of Indian agriculture. Money is needed for quick and lengthy durations to enhance agricultural manufacturing.

According to the All India Rural Credit Survey Committee, in 1950-51, creditors superior extra than ninety percentage of general agricultural credit. Cooperative societies represented round three percentages respectively.

6. Lack of Marketing Facilities:

The mistaken advertising gadget additionally poses problems for farmers. Farmers do now no longer get hold of the praise due for the sale in their products. The middleman takes away a part of their earnings. Unless farmers are assured honest and remunerative prices, there may be little incentive for agricultural manufacturing to growth.

Indian advertising does now no longer have God-owned and garage centers wherein growers can maintain their produce at a higher charge. Furthermore, they lack manner of transportation. This outcome in a low charge of the product.

7. There aren’t any clinical strategies of cultivation:

Ignorance and self-maintenance of the Indian farmer additionally outcomes in negative overall performance of agriculture. They do now no longer realize the significance of contemporary-day technology. Still, the seeds are sown with timber plows. Poor seed excellent produces few crops.

According to Dr. Burns, "Average paddy manufacturing can be improved with the aid of using 38%, that is, with the aid of using 5% via the usage of advanced seeds, 28% via compost and the last 5% via safety towards pests." .

8. Lack of effective funding:

Investing in jewellery, alternate and cash loans seem to be extra attractive. Therefore, much less is invested in enhancing the land. In the absence of effective funding in agriculture, there may be little room to amplify manufacturing.

9. Agricultural Research:

A high-quality deal of cash is spent on agricultural research; however the rewards do now no longer attain negative farmers. There is a loss of coordination among the laboratory and the farm.

10. Excessive dependency:

The actual trouble with low productiveness is that too many human beings rely on the rural sector. The revel in of agriculture suggests that agricultural productiveness is inversely proportional to the variety of human beings engaged in it.

In fact, overdependence leads to small, wasteful and fragmented farms. This inevitably results in low productivity.

11. Poor livestock:

The quality of the animals is very inferior and they are thin and weak. Due to their poor quality, they are needed in greater quantity, which adds an unnecessary burden to poor farmers. Malnutrition is another cause of the degeneration of livestock in our country. As a result, they suffer from one disease or another.

12. Natural calamities:

Another reason for the low productivity of Indian agriculture is that millions of rupees worth of crops are destroyed each year due to floods and other natural calamities. Soil erosion has been considered a progressive death of the exploitation.

13. Social factors:

In our country, the poor performance of agriculture is also due to the operation of various socioeconomic factors. Illiteracy, ignorance, superstition, and conservative perspectives get in the way of adopting modern technology. As such, farmers are against the use of bone manure and chemical fertilizers. In addition, they are prejudiced against the killing of monkeys and rats on the farm.

14. Land Policy and Legislation:

The fragmented nature of the agrarian reform policy and its legislation is largely responsible for the backwardness of agriculture. Over-reliance on administrative machinery has negatively affected agricultural development, unnecessary delay in implementation, and uncertainty about land rights have tended to lower land productivity.

Q4) What measures are taken to overcome the problem of low productivity? 5

A4)  Measures to boom productiveness:

Various measures were taken from the socio-monetary factor of view to boom the productiveness of the Indian agricultural device.

They are as follows:

(i) Adequate implementation of agrarian reforms:

Proper implementation of agrarian reforms and land tenure device can boom the productiveness charge of Indian agriculture. After independence, besides in West Bengal and Kerala, the land reform software has now no longer been carried out successfully. Therefore, a extra attempt has been required with the aid of using the authorities of different states to boom productiveness. The well-known motto, “land for the farmer”, has to grow to be reality.

(ii) Adequate education:

The authorities have made fine efforts to train negative illiterate farmers’ approximately new strategies of technical farming. All marginal farmers and workers have to recognize a way to carry the modern-day clinical era to arable land. This will boom productiveness.

(iii) Adequate terrestrial water resources:

As already mentioned, 329 million hectares of land degraded. Hence, an incorporated and green control of our land may be very important; the Tenth Five-Year Plan has taken many tasks in those regions.

(iv) Package software:

Proper implementation of the 'Package Program' (i.e. irrigation, excessive yielding range seeds, chemical fertilizers, cutting-edge machinery, etc. is important to boom soil productiveness. The consequences of the inexperienced revolution are enormous. All of those aren't they best boom the fertility of the land; however additionally extrude the land that produces an unmarried crop in a couple of manufacturing. In India, maximum of the land is infertile and does now no longer have an everlasting water float device. Therefore, the manufacturing in keeping with hectare may be very negative; consequently the authorities need to take fine tasks in all corners of the country, with a purpose to assist boom soil fertility.

(v) Crop protection:

According to agricultural scientists in India, nearly 5% of overall crop manufacturing is destroyed with the aid of using distinctive insects, pests and diseases. Peak farmers forget about the usage of pesticides and pesticides. Therefore, to boom productiveness, the authorities have to take tasks to provoke numerous applications.

(vi)  Adequate credit score and advertising facilities:

To observe the "Package Program", farmers want a good enough quantity of low hobby charge credit score facilities. Farmers want to get smooth loans at the start of the crop on the way to use all cutting-edge technology at the land and enhance each manufacturing and productiveness of crops. Not best that, the authorities need to pay due interest to amplify the rural marketplace from faraway nook villages to city regions in order that a enough quantity of marketable surplus may be generated.

(vi)  Promotion of manufacturers:

The authorities need to inspire manufacturers with the aid of using giving them numerous incentives such as:

(a) Granting agricultural subsidies;

(b) Provide a good enough line of credit score;

(c) Provision of fee support;

(d) Provide crop coverage to negative farmers;

e) Execution of agrarian reform applications at some stage in the country;

(f) Use of progressed seeds, fertilizers, etc .;

(g) Implementation of irrigation facilities; and

(h) Expansion of technical knowledge.

(viii) Research and Development:

The authorities of India had the Indian Council of Agricultural Research and numerous Agricultural Universities arrange numerous studies and improvement applications for the development of the crop. In West Bengal, Kalyani Krishi (Agriculture) Vishwavidyalaya (University) has been delivered to provoke agricultural studies and improvement.

Q5) Explain agricultural finance.       5

A5) Agricultural finance generally means investigating, investigating and analyzing the financial aspects of Pakistan's core sector, agribusiness. On the financial side, financial problems related to the production of agricultural products and their waste.

Definition of agricultural finance:

Murray (1953) defined agriculture. Finance as "economic research on the borrowing of funds by farmers, the organization and operation of farmers' lending institutions, and the public interest in credit for agriculture".

Tandon and Dhondyal (1962) defined agriculture. Finance "as a division of agricultural economics dealing with financial resources associated with individual farm units".

Agriculture finance is the study, examining and analyzing of the financial aspect pertaining to a farm business or we can say that agricultural finance is a subset of rural finance dedicated to financing agricultural related activities such as input supply, production, distribution, wholesale, processing and marketing.

Nature and scope:

Agricultural finance can be handled at both the micro and macro levels. Macro-financial transactions with various sources of financing for agriculture as a whole economy. He is also involved in the lending procedures, rules, regulations, oversight and management of various agricultural credit institutions. Therefore, macrofinance is related to agricultural finance at the gross level.

Microfinance refers to the financial management of individual farm business units. And it concerns research on how individual farmers think of different sources of credit, the amount of credit borrowed from each source, and how he allocates it.

The same is true for alternative applications on the farm. It is also involved in future use of funds. Therefore, while macrofinance deals with aspects related to the total credit needs of the agricultural sector, the conditions under which credits are available, and the use of total credits for the development of agriculture, microfinance is the financial management of individual agricultural businesses.

Q6) Why do we need agriculture finance?     5 

A6) The want for finance for agriculture can rarely be overemphasized while its productiveness stays low because of monetary constraints. In this context, the All India Rural Credit Survey has observed: “Agricultural credit score is a hassle while it can't be obtained; it's also a hassle while it may be achieved, however in a manner that commonly does extra damage than good. It may be stated that, in India, it's miles hence a double hassle of insufficiency and inadequacy that agricultural credit score affords perennially”. Certainly, an Indian farmer can't make the maximum of his time, exertions and efficient capability of his land because of the shortage of ok monetary facilities. According to Husband and Dockeray, “Financing is essential for any monetary pastime…. Something have to direct the glide of monetary pastime and facilitate its clean operation. Financing is the agent that produces this result”. However, the want for diverse varieties of agricultural finance may be mentioned below the subsequent headings:

1. Productive and unproductive credit score desires: A farmer calls for credit score for manufacturing and intake functions. In different words, the credit score desires of farmers may be categorized into  parts: (i) Credit essential for efficient functions; and (ii) Credit essential for unproductive functions. The loans which are used withinside the efficient exploitation of agriculture are referred to as efficient credit score. However, the efficient desires of farmers and loans for the acquisition of livestock, implements, fertilizers, inputs, higher seeds and machinery, etc. Rather, farmers want credit score for intake functions. Loans which are used for patron functions are referred to as horrific credit score. There is a long term lag among the time while agricultural merchandise are advertised and the following harvest is harvested. Most farmers do now no longer have sufficient earnings to aid themselves at some point of this period. Therefore, they've implemented for loans to cowl their intake desires. In instances of drought or flood, while plants are damaged, farmers have to additionally stable the ones loans. In fact, non-acting loans also are taken for social functions which includes the beginning of a male child, marriage or the loss of life of a relative. Litigation additionally forces farmers to borrow.

As a result, they pay a excessive fee of hobby. Loan compensation and hobby come to be almost not possible and the debt burden accumulates. By one estimate, extra than 1/2 of  the borrowed finances had been used for unproductive own circle of relatives costs and most effective a 3rd changed into spent on enhancing the farm.

2. Credit desires consistent with purpose: According to the Reserve Bank of India, credit score desires may be categorized consistent with their functions:

(i) To cowl own circle of relatives costs: this form of credit score is essential for the acquisition of family utensils and clothing, the charge of medical, academic and different own circle of relatives costs, etc.

(ii) For non-agricultural industrial functions: stated credit score is needed for the restore of manufacturing and transportation equipment, furniture, production and restore of non-agricultural homes or houses, and different non-agricultural capital and commercial enterprise costs.

(iii) For agricultural functions: Farmers want credit score for seeds, compost and fodder, charge of rent, wages, irrigation of plants, condo of pumps, buy of livestock, restore of agricultural implements, development of land, lawn and costs of capital in agriculture.

(iv) Other functions: Said costs consist of the compensation of antique debts, deposits in cooperative agencies, moves and unspecified functions, etc.

3. Credit desires consistent with the duration of the mortgage period: These loans from farmers may be categorized into 3 parts, short-time period credit score, medium-time period credit score and long-time period credit score consistent with:

(i) Short-Term Credit: These loans are necessary for the purchase of seeds, fertilizers, pesticides, animal feed and fodder, etc. The period of these loans is up to 15 months. Farmers also need these loans to support their families in those years when harvests have not been good enough. The main agencies for granting these loans are moneylenders and cooperative societies. These loans can be for both productive and non-productive purposes.

(ii) Medium-term credit: Farmers generally obtain these loans for the purchase of livestock, small agricultural implements, repair and construction of wells, construction of farms and fences, etc. The period of these loans varies between 15 months and 5 years. These loans are provided by moneylenders, family members of farmers and commercial banks, etc.

(iii) Long-Term Credit: Includes loans to make improvements to the land, purchase of expensive machinery, purchase of additional land, excavation of wells and payment of old debts, etc. The amount involved in such loans is very large. The interest rate on such loans is generally low. These loans are anticipated for a long period of between 5 and 20 years.

Q7) What are the sources of agriculture finance?     5

A7) There are two broad sources of agricultural credit in India:

A. NON-INSTITUTIONAL SOURCES:

Non-institutional finance is an important source of rural credit in India, constituting about 40 percent of total credit in India. The interest charged by non-institutional lenders is usually very high. Land or other assets are held as collateral. The important sources of non-institutional credit are the following:

1.  Money lenders: Money lending has been the widely prevalent profession in rural areas. Lenders charge a huge interest rate and mortgage the property of growers and, in some cases, even farmers and their family members are kept as collateral.
2. Other private sources:

(a) Merchants, landowners and commission agents: Agents give credit on the mortgage of crops that when collected are used to repay loans.

(b) Family credit: These credits are generally used to cover personal expenses.

B. INSTITUTIONAL SOURCES:

The general agricultural credit policy has been one of progressive institutionalization aimed at providing timely and adequate credit to farmers to increase agricultural production and productivity. Providing better access to institutional credit for small and marginal farmers and other weaker sectors so that they can adopt modern technology and improved agricultural practices has been one of the main objectives of the policy. National

The Bank for Agriculture and Rural Development (NABARD) is a leading institution established in 1982 for rural credit in India. It does not directly finance farmers or other rural populations. It grants them assistance through the institutions described below:

1. Rural cooperative credit institutions:

Rural credit cooperatives are the oldest and most extensive form of rural institutional finance in India. The main impulse of these cooperatives in the area of ​​agricultural credit is the prevention of exploitation of farmers by moneylenders. Rural credit unions can be divided into short-term credit unions and long-term credit unions.

Short-term credit unions provide short-term rural credit and are based on a three-tier structure as follows:

(a) Primary Agricultural Credit Societies (PAC): They are organized at the village level. These companies generally make loans only for productive purposes. The main objective of a PACS is to raise capital for the purpose of making loans and supporting essential activities of members, such as providing agricultural inputs at cheap prices, improving irrigation on member-owned lands, encouraging various activities of raising income such as horticulture, animal husbandry, poultry, etc. In India, about 99.5 percent of villages are covered by PAC.

b) District central cooperative banks: these cooperatives are organized at the district level. The PACS are affiliated with the District Central Cooperative Banks (DCCB). The DCCBs coordinate the activities of the central district financial agencies, organize credit for the PACs, and carry out banking activities.

(c) State Cooperative Banks: DCCBs are affiliated with State Cooperative Banks (SCBs), which coordinate the sports of DCCBs, prepare the supply of finance for creditworthy farmers, behaviour banking business, and act as leaders of the Co -Operations withinside the United States.

Ii.  Long-time period credit score unions: those cooperatives fulfil farmers' long-time period credit score and are prepared on levels:

(iii) Primary Cooperative Agricultural and Rural Development Banks: These banks function on the village degree as an impartial unit.

(iv) Cooperative nation agricultural and rural improvement banks: those banks function on the nation degree thru their branches in specific villages.

(v). Commercial banks:

Commercial Banks (BC) offer rural credit score through organising their branches in rural regions. The participation of business banks in rural credit score became very low till 1969. The All India Rural Credit Review Committee (1969) endorsed a multi-corporation technique to rural and specifically agricultural credit score. He recommended the more and more essential position of vital banks in granting agricultural credit score. Furthermore, below the Social Control Policy delivered in 1967 and, subsequently, the nationalization of 14 essential vital banks in 1969 (accompanied through every other six banks in 1980), vital banks were given unique obligation for shaping their operations. Advances for agricultural and associated sports withinside the country. . There became a wonderful enlargement of rural branches and vital banks delivered the primary financial institution scheme and district credit score schemes for rural regions. Banks had been requested to lend 18 percentages in their overall advances to agriculture withinside the forty percentage quota of precedence region loans. This enlargement of rural credit score persisted till the overdue 1980s. However, withinside the overdue 1980s, vital banks suffered massive losses because of the authorities’ waiver of agricultural loans. The economic liberalization method with the adoption of the Narasimham Committee file in 1993 has necessitated banks cognizance on profitability and undertake prudential rules. The percentage of financial institution credit score to rural regions, specifically to small borrowers, has regularly declined.

(vi)Regional rural banks (RRBS):

RRBs are specialised banks set up below the RRB Act of 1976 to serve the desires of the agricultural poor. RRBs are set up as rural-orientated business banks with the low-fee profile of cooperatives, however with the expert area and cutting-edge outlook of business banks. Between 1975 and 1987, 196 RRBs had been set up with extra than 14,000 branches. As a end result of the merger, the variety of RRBs became decreased from 196 to 133 as of March 31, 2006 and to ninety six as of April 30, 2007. The RRBs protected 525 of 605 districts as of March 31, 2006. After the merger, RRBs have turn out to be pretty big overlaying maximum of the nation. The extra insurance of the districts through the CRRs makes them an essential phase of the Rural Financial Institutions (RFI). The RRC department community in rural regions constitutes approximately forty three percentage of the full rural branches of business banks. A big variety of RRB branches had been opened in unbanked or under banked regions that offer offerings to the indoors and far off regions of the country. The CRRs in particular cowl small and marginal farmers, landless workers, rural artisans, small investors and different weaker sectors of the agricultural community. However, even after such a lot of years, RRB's marketplace percentage in rural credit score remained low and has suffered massive losses. In current years, the authorities have initiated a reform method to enhance the operation of the CRRs.

Q8) What is agricultural marketing?      5

A8) Agricultural marketing consists of marketing edible crops, commercial crops, plantation crops, horticultural crops, and semi-processed products.

Agricultural marketing is a process that begins with the decision to produce for sale, including all aspects of both functional and institutional market structures or systems, based on technical and economic considerations, before harvest. And includes post-harvest operations: assembly, grading, storage, transportation, and distribution.

According to Thomsen, agricultural marketing research consists of all businesses involved in the transfer of farm-produced foods, raw materials, and derivatives such as fiber from the farm to the end consumer and the institutions that carry them out. Its impact of such operations on farmers, middlemen and consumers.

National Commission on Agriculture – According to Agricultural Marketing, the process begins with the decision to produce for sale, and all of the market structures or systems, both functional and institutional, based on technical and economic considerations  includes sides. Pre-harvest and post-harvest operations include assembly, grading, storage, transportation, and distribution.

Marketing agricultural products in India does not make sense. Agricultural marketing is one of many issues directly related to the prosperity of cultivators. Agricultural marketing, in a broad sense, consists of all operations related to the movement of goods and raw materials from the field to the end consumer.

This includes product handling, initial processing, grading and packaging on the farm to maintain and improve quality and avoid waste. Unfortunately, the current Indian agricultural sales system is very flawed and needs a thorough overhaul.

The close interrelationships between agricultural production (agriculture), agricultural finance (credit), and agricultural marketing (sales of agricultural products) are recognized by government and agricultural affairs experts.

Agricultural products include not only products that result from cultivation, but also products that result from dairy farming, poultry farming, fruit tree cultivation, vegetable cultivation, and so on. In this broad sense, it also includes milk and dairy products, eggs, fruits, vegetables and honey. Agricultural products.

Despite the development of highly sophisticated means of transportation, improved standardization and rating, advanced communication systems, scientific storage methods and agricultural marketing for warehousing, Indian agriculture is still lagging behind  increase.

Therefore, different types of marketing that perform different functions in the marketing of agricultural products require the use of broad and effective distribution channels. Small-scale production of agricultural products leads to further concentration, levelling and decentralization. As a result, these produce inevitably pass through several important wholesale markets, such as the employment and secondary markets.

The unique characteristics of agricultural products are as follows.

(A) Bulky

(B) Perishability

(C) Differences in a wide range of varieties

(D) Seasonality

(E) Distributed production

(F) Consumption processing needs.

These features make agricultural marketing a complex system. Generally, farmers sell their produce raw, unprocessed, immediately after harvesting. Since only raw produce is sold, many intermediaries need to work between producers and consumers.

The path a product takes from a producer to an end consumer is called a marketing channel. The type and complexity of marketing channels depends on the product. Roadside markets are a very simple marketing channel, from producers / farmers to direct consumers (vegetables). However, most products are further processed at different levels of marketing channels and go through many companies before reaching the final consumer.

Q9) Discuss the problems of agricultural marketing.    8

A9) Defects / Problems

Although India is an agricultural country, its agricultural marketing has been flawed. Indian farmers cannot get reasonable prices for the products, even after their hard work, and they are fully exploited by middlemen.

1. Too many intermediates

The most important flaw in Indian agricultural advertising is the presence of too many intermediaries and the exploitation of farmers via way of means of them. On the only hand, those intermediaries take advantage of farmers via way of means of shopping for the product at decrease fees and, on the opposite hand; they take advantage of clients via way of means of worrying better fees from them. The sole goal of numerous fee agents, brokers, etc. is to reap better profits from intermediate processes. These intermediaries abuse the early terrible on the idea in their monetary resources.

2.  Faulty weights and scales

One of the largest flaws in agricultural advertising arises because of weights and scales. Bricks, etc. are typically utilized in rural regions as pesos and in city markets there also are faulty pesos. Therefore, the farmer's grain is weighed with a heavier weight for his very own benefit. Most traders hold separate weights for purchasing and promoting grain.

3.  Illiteracy and absence of solidarity amongst farmers

Indian farmers are illiterate who're less complicated to be fooled via way of means of moneylenders, traders, middlemen, because of their easy nature. Similarly, the dearth of solidarity amongst farmers additionally reasons their exploitation due to the fact Indian farmers are scattered in remote regions in rural places. They cannot meet and remedy their problems, as an end result they do now no longer get a honest rate for his or her merchandise.

4.  Lack of monetary resources

In rural regions, there's a loss of financial resources, so their emergency necessities aren't even met. In such conditions, farmers promote their merchandise earlier than they mature. Similarly, a few monetary centers, consisting of mortgage instalments for pumping equipment, tractor, thresher, etc. They need to be paid month-to-month or quarterly so that they need to promote the product as quickly as possible. Thus, just like the loss of monetary assistance, it's far a trouble for farmers; so receiving the mortgage additionally places them in hassle.

5.  Lack of a prepared advertising gadget

Agricultural advertising is likewise very mistaken in India due to the fact prepared advertising isn't in fashion here, consisting of cooperative societies, authorities advertising activities, everyday markets, etc. As an end result, the farmer stays entangled withinside the farm. Therefore, the dearth of a prepared advertising gadget is damaging to farmers. That is why; the farmer sells his produce in my view to exceptional people. The medium takes complete benefit of disorganized farmers.

6.  Lack of transportation centers

Roads from cities to towns are regularly unpaved and cannot be transported in the course of the wet season. The bullock carts can deliver the product best to a restricted area. During the dearth of manner of transportation, the farmer cannot get his produce to the right marketplace and cannot acquire an honest rate for the produce from him.

7.  Lack of warehouses

A principal shortcoming of Indian agricultural advertising is the dearth of warehouses. Due to the dearth of this facility, the farmer cannot competently hold his product till he can get a honest rate and is pressured to promote his product at a low rate. The inadequate and unscientific shortage centers which are to be had waste huge portions of grain. Approximately 20% to 30% of income are misplaced because of rats, insects, etc. and farmers need to undergo hundreds of thousands of losses because of the dearth of those centers.

8.  Lack of standardization

The loss of standardization and class is truly seen withinside the agricultural advertising of India, making it tough to attain  settlement concerning those merchandise. Due to the dearth of right standardization and class, clients have hassle shopping the product.

9.  Lack of marketplace know-how

The Indian farmer has no advertising skills. He believes in records acquired from the village marketers and moneylenders. For the maximum part, Indian farmers are illiterate, so that they cannot study the newspaper. Therefore, they do now no longer have sufficient know-how approximately the marketplace. Now, the authorities transmit the marketplace costs withinside the ratio, which has clearly benefited them.

10. Corrupt guidelines of the 'mandis'

If we have to observe the circumstance of the mandi, this reality isn't always hidden any greater than the intermediaries and the traders together mislead the easy farmers. The Indian Organizing Society has clarified the subsequent data associated with the corrupt guidelines of the mandi

1. The insufficient advertising and marketing device is so pressured in India that about 5% of the quantity is deducted from the farmer's produce withinside the call of donations, "dharmada", "chanda", etc.
2. Farmers are paid low charges as they lack ok expertise approximately marketplace charges, their fluctuations, authorities guidelines, etc. Therefore, with the aid of using retaining the costs secret, the farmers are misled.
3. Before sale, huge portions of grain are taken from farmers as samples. By asserting that the product is of substandard quality, minimal charges are paid for it.

Q10) What measures are taken to overcome the problem of agricultural marketing?                                                                                                                                                          8

A10) Despite all of the above flaws withinside the Indian agricultural advertising machine, the farmer does now no longer get a truthful deal at the marketplace. However, the circumstance of it could be progressed with the aid of using casting off the defects.

The following steps may be taken to enhance the cutting-edge agricultural advertising machine in India:

(a) Regulated markets:

Regulated markets may be installed in an effort to disposing of bad and unethical commercial enterprise practices and lowering diverse advertising costs in an effort to reaping benefits the negative grower. Recently, several regulated markets were created in diverse states to guard the pursuits of farmers.

(b) Expansion of the marketplace shipyards:

This is an important want. This need to be supported with the aid of using a corresponding growth of ancillary centers withinside the diverse current markets and the introduction of latest markets and marketplace patios to address the outstanding growth in marketplace arrivals, especially in the ones regions wherein the Green Revolution has occurred (a namely, Punjab, Haryana) and western UP).

(c) Cooperative Marketing Societies:

Here it's miles vital to set up such partnerships. Some development has been made on this direction. In India, the cooperative advertising shape consisted of extra than 7,000 cooperative advertising societies at some point of 1999-00, overlaying all main agricultural markets withinside the country. The general fee of agricultural merchandise traded with the aid of using the cooperatives amounted to Rs. Rs 22,500 crore in 1999-00, down from Rs. 169 million rupees in 1960-61.

(d) Storage centers:

Expansion of the garage centers at the farm and the Storage and Warehouse Corporation, in an effort to the development and management of a. The complete community of warehouses in all cities and mandis. Cooperative societies achieve economic and vital resources. Government technical help for the promoting of warehouses withinside the villages.

In addition, the National Cooperative Development Corporation has been created to plan, sell and finance this system to growth the garage capability of cooperatives at diverse levels. The garage capability of a hundred and fifty lakhs tonnes had already been constructed withinside the cooperative area on the give up of March 2000, up from a capability of eight lakhs tonnes in 1960-61.

(e) Credit:

Steps may be taken to offer reasonably-priced credit score to farmers, particularly from institutional reassets which includes industrial banks and cooperatives. Cooperative societies are supplying credit score centers to farmers so one can enhance their monetary conditions, guard them from the exploitative practices of village moneylenders and assist them achieve affordable charges for his or her merchandise.

(f) Transportation centers:

Expansion of delivery centers among villages and Mandis seems to be the want of the moment. Rural delivery has been emphasised withinside the five-yr plans and sizeable development has been made on this direction.

(g) Other measures:

Several different measures taken encompass the fast provision of marketplace data via posted files and tv programs, standardization and category to assure great to customers and higher charges to producers.

Q11) Explain framer’s act 2020.      8

A11) The SC has shaped a four-member committee so as to hold to put in force the 2020 Agricultural Law and make tips inside  months. The panel notified a committed portal to achieve character farmers' opinions. The authorities proposed to droop the implementation of the 2020 farming regulation for a yr to a yr and a half, however farmers refused to do so. The Minister of Agriculture reiterated that the middle did now no longer abolish the Farmers Act, however changed into equipped to talk about different alternatives with the farmers.

In September 2020, President Ram Nart Covind agreed on 3 "agricultural bills" formerly surpassed via way of means of the Indian Parliament. These farming strategies are as follows.

1-2020 Farmers Agricultural Trade and Commerce (Promotion and Promotion) Act

2-Farmers (Empowerment and Protection) Agreement on Price Guarantee and Agricultural Services Act of 202

3- 2020 Essential Commodity (Amendment) Act

Farmers (Empowerment and Protection) Agreement on Price Guarantee and Agricultural Services Act of 2020

1-Background: On June five, 2020, the Federal Cabinet promulgated a Farmers (Delegation and Protection) Agreement on Price Guarantees and Agricultural Services Ordinances for 2020.

2-Act: It creates a countrywide framework for settlement farming thru an settlement among farmers and customers previous to the manufacturing or breeding of produce.

3-Regulation:

(A) Agricultural Agreement: This regulation presents for an agricultural settlement among a farmer and a customer previous to the manufacturing or breeding of agricultural merchandise.

(B) Minimum duration of agricultural settlement: The minimal duration of agricultural settlement will be one crop season or one manufacturing cycle of livestock.

(C) Maximum time period of agricultural settlement: The most time period of agricultural settlement is five years. He additionally said that if the manufacturing cycle of agricultural merchandise is lengthy and may exceed five years, the most period of the rural settlement may be jointly decided via way of means of the farmer and the client and may be explicitly said withinside the agricultural settlement.

(D) Agricultural product pricing: The method of agricultural product pricing and pricing must be defined withinside the settlement. For fluctuating expenses, a clean connection with the assured charges of the produce and the extra quantity above the assured charge need to be designated withinside the settlement.

(E) Dispute decision: The regulation presents for 3 stages of dispute decision mechanisms: the mediation committee, the justice of the peace and the appellate authority.

2020 Farmers Agricultural Trade and Commerce (Promotion and Promotion) Act

1-Background: On June five, 2020, the 2020 Peasant Agricultural Trade and Commerce (Promotion and Promotion) Ordinance changed into promulgated via way of means of the Federal Cabinet.

2-Law: Allows the alternate of agricultural merchandise inside and among states of farmers past the bodily premises of the Agricultural Markets Commission (APMC) Market and different markets notified below the APMC Act of the State.

3-Regulation:

(A) Farmers ‘Agricultural Trade: This regulation lets in farmers to alternate in outside buying and selling regions inclusive of farm gates, manufacturing facility grounds and refrigerated warehouses. Previously it is able to handiest be achieved withinside the APMC backyard or Mandis.

(B) Alternative Trading Channels: Promote favourable expenses for farmers thru opportunity buying and selling channels and facilitate barrier-loose intra-nation and interstate agricultural transactions.

(C) Electronic Transactions: In addition, digital transactions of agricultural merchandise scheduled withinside the certain alternate area (agricultural merchandise regulated via way of means of the nation's APMC regulation) may be possible. It additionally allows the direct and on-line shopping for and promoting of agricultural merchandise through electronics and the Internet.

(D) Abolished Market Fees: The regulation prohibits the nation authorities from implementing marketplace prices or prices on farmers, traders, and digital buying and selling systems which will alternate farmers' agricultural merchandise in "outside buying and selling regions."

Agricultural Markets Commission (APMC):

Essentials (Amendment) Act of 2020

1-Background: On June five, 2020, the 2020 Essential Commodity (Amendment) Ordinance changed into promulgated via way of means of the Federal Cabinet.

2-Law: This is the regulation of the Parliament of India enacted in 1955 to make certain the transport of positive items or items, and people's ordinary whilst deliver is blocked because of hoarding or black markets. It impacts your life. This consists of foods, drugs and fuels (petroleum merchandise).

3-Central Government Authority:

(A) The Government of India regulates the manufacturing, deliver and distribution of some of items declared "critical" to cause them to be had to customers at truthful expenses.

(B) The authorities can also alter the MRP of packaged merchandise that it broadcasts to be "critical merchandise".

(C) The Center can also additionally upload merchandise to this listing as wished and cast off them from the listing whilst instances improve.

If a particular item is in short supply and the price is soaring, the government can notify you of inventory limits for that item for a specified period of time.

4-State Government Authority: Each state government can choose not to impose the restrictions notified by the Center. However, if restrictions are imposed, the trader must immediately sell the shares held in excess of the required quantity to the market. This is done to improve supply and lower prices.

5-Amendment: Due to the amendment of the law, the Government of India will list certain goods as essential to regulate supply and prices only in the event of war, famine, unusual price increases or natural disasters. Deregulated products include foods such as cereals, legumes, potatoes, onions, edible oil seeds and oils.

6-Inventory Limits: Due to the amendment, imposing inventory limits on agricultural products is based on price increases and can only be imposed if the retail price of horticultural products rises by 100% and 50%. At retail prices for perishable produce.

7-Calculation: The increase is calculated against the lower of the prevailing price for the last 12 months or the average retail price for the last 5 years.

Please note that these restrictions do not apply to inventory of foods held for public distribution in India.

Q12) Why are farmers protesting?      8

A12) Indian peasants are afraid that they may lose more than they can get after the new peasant demonstration in 2020, thereby protesting the streets.

As quoted by ANI, Rakesh Tikait, leader of the Bhartiya Kisan Union, said: When these laws are withdrawn. Just as the government has submitted three bills, so does the MSP. "

ANI further said that BKU leader Rakesh Tikait was ready to discuss future farming practices with the government.

What is the "Paglisan Barjatta Movement" and how is it related to ongoing peasant protests?

As Al Jazeera reported, 27-year-old Rashpin Darsin said the Indian government had left farmers at the mercy of large corporations. It is unreasonable to believe that farmers with low land ownership have bargaining power over private companies.

When farmers' upset over three controversial farming methods entered Day 34 (December 29, 2020), the Center's proposal was that the Farmers' Union on December 29, 2020 would hold a sixth round of consultations. I accepted.

The Center sent a meeting invitation to 40 farmers accepted by the farmers on December 30, 2020, after the farmers who upset the center's proposal to hold a sixth round of talks accepted it.

All issues related to farmers, including three agricultural laws, MSP-based procurement, the Metropolitan and Adjacent Region Ordinance's Air Quality Control Committee, 2020, and electricity, according to a letter from Union Agricultural Secretary San Giagurwal. The annual amendment bill will be discussed in detail with 40 representatives of the agricultural cooperative.

The meeting is scheduled for December 30, 2020 at 2:00 pm. Between the center and 40 peasant representatives was held in Vigyan Bhawan, New Delhi.

The sixth round of talks between the central government and farmers' unions came to a conclusion on issues related to environmental and electricity laws, but the abolition of three farming methods in 2020 and the legal guarantee of MSP (Minimum Support Price). The request was still inconclusive. .. The seventh round of talks between the center and the farmers took place on January 4, 2021 at Vigyan Bhawan and failed to reach a breakthrough.

According to ANI reports, Sukhwinder S Sabra, Joint Secy and Kisan Mazdoor Sangharsh Committee have stated that if the requirements are not met on January 4, 2021, the tractors will march on January 6 and 26, 2021.

Yogendra Puranik agreed with the tractor procession from the protest site, saying: "On January 7, we decided to march on tractors at four borders in Delhi, including the eastern and western surrounding areas. This is a trailer of what is scheduled for January 26. . "

According to peasant leaders, about 3,000 tractors participated in the tractor march on the Kundri-Manesar-Palwal or Western Peripheral Highway on January 7, 2021, and the Kundri-Ghaziabad-Palwal or Eastern Peripheral Highway. At least 500 cars participated on the road. It is important to note that the two highways (the eastern and western peripheral highways) form a ring around the capital city of Delhi.

Round eight consultations among the Center and the farmers came about on January eight, 2021 at 2:00 pm. At Vigyan Bhawan. Minister of Agriculture Narendra Singh Tomar, Minister of Railways, Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Minister of Commerce and Industry Som Prakash participated with representatives of forty one farmers' unions.

Agriculture Minister Narendra Singh Tomar stated the 2020 farming technique became designed with the pastimes of farmers throughout the u . s . in mind. The authorities is worried approximately farmers and desires to stop the turmoil, however the loss of an answer has averted destiny problems. He additionally praised the peasants for maintaining the disappointed and discipline.

The farmers' union known as for the abolition of the 2020 farming regulation, however the significant authorities once more proposed a revision. The ninth session became hung on January 15, 2021.

The tenth assembly became scheduled for January 19, 2021, however became postponed till January 20, 2021. The Ministry of Agriculture stated in a declaration that a ministerial assembly with the authorities's farmers' union might be held in Viganbawan on January 20, 2021 at 2:00 pm. , Instead of January 19, 2021.

January 20, 2021, Minister of Agriculture Narendra Singh Tomar, Minister of Railways, Commerce and Industry, Consumer Affairs, Food and Public Distribution, Minister of Commerce and Industry Som Prakash, forty one of forty one in Vigyan Bhawan, New Delhi Farmers' union.

The authorities advised to the farmers' union that the enforcement of the 2020 Agricultural Law need to be suspended for one to 1 and a 1/2 of years. During the above period, farmers' unions and authorities representatives could be capin a position to speak about debatable problems associated with 2020 farming to attain the proper answer.

The eleventh session among the Center and the Farmers' Union became scheduled for January 22, 2021. Farmers refused to just accept the Center's concept to position the debatable regulation on preserve for a 12 months and a 1/2 of.

So far, eleven discussions were held among the authorities and the farmers' representatives. But to date no answer has been found.

Do now no longer abolish 2020 farming regulation: Minister of Agriculture

On July eight, 2021, Federal Agriculture Minister Narendra Sintmar reiterated that the Center did now no longer abolish the 2020 Farming Act and became geared up to speak about different alternatives with farmers.

"I need to induce the protesting farmers to stop their protest and speak to us. The authorities is prepared to speak," stated Allied Agriculture Minister Narendra Singh Tomar.

In addition, "1 rupee allotted to the Farmer's Infrastructure Fund beneathneath Atmanilbar Barrat may be utilized by APMC. APMC will now no longer be abolished. After the enforcement of the farming regulation, APMC will obtain rupees from the Center's Infrastructure Fund. It will beef up them and assist extra farmers. "

Q13) What is concept of Chakka Jam in farmer’s act 2020?   5

A13) As safety increases, farmers protesting the center's new agricultural law block roads in several parts of the country on Saturday with a nationwide "chakka jam" or Samuktaxane Morcha's call for road blockages. Bottom. Meanwhile, the Interior Ministry has ordered that Internet services at the borders of Singhu, Gazipur and Tikri in Delhi be shut down until 11:59 pm.

At the Chakka Jam, which took place from 12:00 pm to 3:00 pm, farmers shouted the slogan and blocked the road by parking a tractor trolley in the middle of the highways in several places in Punjab and Haryana. ..

The "chukka jam" responded to the "ignore" of farmers' demands in the 2021 coalition budget and the Internet ban imposed by the central government on various protest sites adjacent to the capital. This was the first major event organized by upset peasants after a Republic Day tractor rally. It saw a chaotic scene when a group of protesting peasants interrupted a planned parade route, entered the center of the capital, clashed with police, and were lifted. Peasant and Sikh flags on the iconic Red Fort walls.

Protests were prominent in Punjab and Haryana, where many national roads were blocked by farmers, causing traffic disruptions. In Rajasthan, farmers also blocked highways and highways and demonstrated in many places, including Sri Ganganagar, Hanumangarh, Dolpur, and Jhalawar.

In Jammu, a group of farmers protested along the Jammu-Pathankot highway to support "chukka jam". In Karnataka, police detained upset protesters outside the Yelahanka police station.

In Haryana, thousands of farmers have blocked the Kundli-Manesar-Palwal (KMP) highway.

Farmers, primarily in Punjab and Haryana, have been camping on the Delhi border for more than two months in search of the abolition of three agricultural laws. The legislation is the Farmers Trade and Commerce (Promotion and Promotion) Act of 2020, the Farmers (Delegation and Protection) Agreement on Price Guarantee and Agricultural Services Act of 2020, and the Mandatory Commodity (Amendment) Act of 2020.

Protesting farmers have expressed concern that these laws could pave the way for the dismantling of the Minimum Support Price (MSP) system and leave it to the "mercy" of large corporations. However, the government rejected these claims, stating that the law only gives farmers more options for selling their produce.

Q14) Explain the concept of Chakka Jam . Why did Indian farmers reject the central government's proposal?                                                                                                  5

A14)

1-The central government has proposed that each state government can tax private mandis.

The proposal was rejected by farmers because they believe that the creation of a private mandis with APMC will drive agricultural operations towards the private mandis, ending government markets, intermediary systems and APMC. As a result, large companies will overtake the market, thereby procuring produce at an accidental rate. Farmers believe that the government can delay procurement (as in the case of paddy fields), making public markets inefficient and redundant.

2-The central government has proposed to provide written guarantees on the continuation of the existing MSP system.

The proposal was rejected by the farmers because they believe that the new farming method 2020 was brought to dismantle APMC. Therefore, they require comprehensive legislation on MSP Pan India and all crops. They believe that a written guarantee from the federal government is not a legal document and has no guarantee.

3-The central government has proposed instructing the state government to register to regulate traders.

The proposal was rejected by farmers as the new Farming Law 2020 has no provisions to regulate traders. In accordance with the new law, any PAN cardholder can procure grain from the market and store produce at the desired price. Farmers believe that the central government wants the state government to regulate traders and is not ready to take responsibility for ongoing problems.

4-The central government says that under the Contract Agricultural Law, farmers are safe because they have an alternative way to approach the court and are not financed by mortgaging their land and its buildings.

The proposal was rejected by farmers because there are many examples of non-payment by companies making various excuses, such as substandard produce, in the history of contract farming. For sugarcane produce, for example, payments have been made for years. Many unproduced cases have been witnessed because of "poor quality", putting farmers in debt traps. Therefore, the farmer does not have the money to repay the loan and has no option to sell / lose the land.

Q15) What do you mean by organic farming? What are its advantages? 8

A15) The introduction of chemicals into agriculture has become a lot of capriciousness to see what they can achieve. The yield exploded. Initially, the soil was healthy. The damage caused by chemical fertilizers was barely noticeable. Pests did not develop resistance to chemicals. Considered an agricultural revolution, this technology has spread around the world.

Flash forwarding towards today, many are once again amazed at organic farming. This was after learning that traditional farming methods have many health-related illnesses such as cancer, pollution, soil and water degradation, and livestock effects.

Organic farming is a technique for growing plants and raising animals in a natural way. This process involves the use of biological materials, avoiding synthetics and maintaining soil fertility and ecological balance, thereby minimizing pollution and waste.

In other words, organic farming is a method of growing and growing crops without the use of synthetic-based fertilizers or pesticides. Also, genetically modified organisms are not allowed.

It relies on ecologically balanced agricultural principles such as crop rotation, green manure, organic waste, biological pest control, minerals and rock additives. Organic farming uses pesticides and fertilizers when they are considered natural and avoids the use of various petrochemical fertilizers and pesticides.

The International Federation of Organic Agricultural Movements (IFOAM), an international organization founded in 1972 for organic farming organizations, defines the goals of organic farming as follows:

“Organic farming is a production system that maintains the health of soils, ecosystems and people. It is not the use of adverse inputs, but the ecological processes, biodiversity and cycles that are adapted to local conditions. Dependence. Organic farming combines tradition, innovation and science to benefit a shared environment and promote fair relationships and quality of life for all involved.”

Advantages:

Benefits of natural farming

Organic farming is turning into very famous everywhere in the world. People commenced the use of natural merchandise. Therefore, natural farming is hastily turning into a trend. These are the principle benefits of natural manufacturing strategies that make their recognition stand out.

1. No chemical compounds are proof against pests and diseases

Organic farming, rather than chemical-primarily based totally insecticides, creates a herbal degree of resistance to govern pests and diseases. Eliminate the usage of artificial merchandise to enhance crop productivity.

These farming strategies handiest permit herbal soil development techniques, in preference to the use of fertilizers to maximise yields.

2.  Supports more healthy soil and pollen maters

This is one of the maximum crucial blessings of natural farming. The use of artificial insecticides is one in all the most important troubles for pollen maters like honeybees. For example, glyph sate and neonicotinoids are the principle reasons of devastating populations of positive pollen maters. Well, natural farming helps pollen maters as it does not incorporate chemical-primarily based totally boosters.

At the identical time, organically grown soils are acknowledged to provide more healthy objects that incorporate better antioxidants, omega-three fatty acids, nutrition E and extra.

3.  Does now no longer use genetically changed meals

One of the first-rate elements of natural farming is the absence of genetically changed meals. Organic farmers are handiest allowed to mate to sell herbal manufacturing degrees. The use of industry-primarily based totally merchandise to develop vegetation for marketplace functions isn't always permitted.

4.  Healthy surroundings for farmers to work

Organic farming is useful now no longer handiest to the fitness of soil, meals and those who eat natural meals, however additionally to the farmers themselves. Organic farmers control their fields on a each day foundation and aren't uncovered to dangerous artificial ingredients.

On the alternative hand, farming strategies that use chemical compounds for cultivation are susceptible to destiny fitness troubles which include neurological disorders, headaches, myriad disturbing symptoms, and migraines.

5.  Organic farmers use herbal fertilizers

Agriculture calls for fertile soil to enhance productivity. Organic farming, not like conventional farming, makes use of herbal fertilizers made at the farmland to enhance soil fertility. Natural fertilizers utilized in natural procedures assist sell higher yields.

Traditional agriculture makes use of chemical fertilizers, which in the long run spoil soil fertility. Organic farmers use a whole lot of strategies to keep soil fertility, such as crop rotation, inexperienced manure, composting, and bug farming. Therefore, this consists of numerous blessings of natural farming.

6.  Produce more healthy meals

Because natural farming is a herbal method of manufacturing meals, the dietary degrees of this meals are very excessive in comparison to meals produced in conventional agriculture. It's clean that organically grown end result and veggies are a good deal tastier and extra nutritious due to the fact they take a long term to thrive.

For example, peaches grown on natural farms are a good deal extra tasty due to the fact they're excessive in polyphones.

In short, natural farming is based on high-satisfactory manufacturing, at the same time as conventional farming believes in mass manufacturing.

7.  Providing useful area of interest crop possibilities for natural farmers

Organic farming gives a excellent possibility to begin diversifying the goods we develop each year. Traditional farmers depend on coins vegetation for profit. For example, soybeans and corn are cultivated as most important coins vegetation, making first-rate profits.

Organic farmers can take this possibility to develop a whole lot of meals that may be offered for the duration of the year. For example – ancestral vegetation are a first-rate possibility for natural farmers who're a good deal tastier and on the identical time nutritious. Even the seeds of ancestral vegetation are appreciably extra cheap than hybrid ones.

8.  Eco-pleasant cultivation approach

Looking on the present day scenario, environmental safety is our simple priority. No be counted what region we belong to, the crucial issue is that every one our methods need to be environmentally pleasant. When it involves agricultural procedures, natural farming blessings the weather as it shops carbon withinside the soil.

This approach regularly calls for extra guide exertions than mechanical device and facilitates reduce power consumption. It additionally reduces greenhouse fuel line emissions that assist the ecosystem.

Q16) What is contract farming? State its advantages.   5

A16) Contract farming includes agricultural production under an agreement between the buyer and the farm producer. In some cases, the buyer must specify the required quality and price, and the farmer must agree to future deliveries. However, more generally, the contract outlines the terms of the production of produce and their delivery to the buyer's premises. Farmers are committed to supplying agreed quantities of crops or livestock products based on the buyer's quality standards and delivery requirements. In return, the buyer (usually the company) often agrees to buy the product at a preset price. Companies also often agree to assist farmers, for example, by supplying inputs, assisting in land preparation, providing production advice, and transporting products to the premises. The term "out grower scheme" is sometimes used as a synonym for contract farming and is most commonly used in eastern and southern Africa. Contract farming can be used for many produce, but it is less common in developing countries for staple foods such as rice and corn.

Contract farming has existed for decades as a way to organize agricultural production, and its use seems to be expanding very rapidly in recent years, including in much of Africa.

But what exactly does this term mean? Sometimes it is when the buyer specifies the required quality and the price offered and the farmer promises to deliver on a future date.

But in general, contract farming means that farmers don't just have contracts to supply their buyers. An important feature is that buyers have an opinion on how, when and where to produce and harvest their products. For example, a farmer who uses basic seeds provided by a seed company, uses inputs provided or recommended by the company, and grows certified seeds at an agreed price according to all recommended production practices, contracts. We are cultivating. This gives you a simple definition for use in this white paper.

"Contract farming is agricultural production that is based on the agreement of the farmer and the buyer, and imposes conditions on the production and sale of goods."

Advantages

Benefits of contract farming

(1) Farmers: In general, farmers have little knowledge of crop cultivation practices, low incomes, lack of post-harvest management skills, inadequate infrastructure, and market data. Farmers can use their understanding of the agreement as an input to guarantee the creditworthiness of commercial banks and to fund their inputs. Contract farming helps smallholders participate in the cultivation of high-yielding crops such as vegetables, flowers and fruits. Contract farming does not require a lot of money for farmers and reduces the cost of obtaining donations provided by contract companies.

(2) Contract companies: Contract agriculture is usually followed by food management organizations. Contract farming provides a solution to the problem of supplying the required amount of raw materials and to a reliable source close to the treatment facility.

(3) Banks: Banks and financial institutions support contract agriculture. Contract farming makes it easy to monitor manufacturing operations, dissemination activities, and credit offerings. Joining a bank in contract farming makes it easier to get a loan at a better price.

(4) Government: Many government agencies and some governments are directly or indirectly involved in contract agriculture. To combat poverty, the best program to include private companies in contract agriculture is to accelerate technology transfer, income generation, and guaranteed agricultural harvest markets. Private farming businesses offer new strategies that are more successful than government control in agriculture because they bring direct economic benefits to increasing farmers' productivity. This will also create opportunities to work in a rustic environment, job creation, agribusiness, and financial creation.