Daily News Simplified - DNS 25 05 20

NotesSL. NO. TOPICS

THE HINDUPAGE NO.

1 Hardly the 1991 moment for agriculture 06

2 For farms and farmers 06

3 The need for a million worksites now 07

4 Howrah’s botanical garden now a graveyard of 1000 trees 10

5 Failing to perform as a constitutional court 07

Dated: 25-May-2020 DNS Notes

Title 1. Hardly the 1991 moment for agriculture (Pg:06)Syllabus Mains: GS Paper III – Indian EconomyTheme AgricultureHighlights

Declaration of MSP The Cabinet Committee on Economic Affairs (CCEA) notifies MSP based on the

recommendations of the Commission on Agricultural Costs and Prices (CACP). These recommendations are made separately for the Kharif marketing season and the Rabi marketing season. Post harvesting, the government procures crops from farmers at the MSP notified for that season, in order to ensure remunerative prices to farmers for their produce.

As of now, CACP recommends MSPs of 22 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 3 commercial crops (copra,cotton and raw jute).The Government declares FRP for sugarcane.

How are the MSPs fixed?

The CACP considers various factors such as the cost of cultivation and production, productivity of crops, and market prices for the determination of MSPs.

Different methodologies may be used to calculate the MSPs. These are (i) A2 Approach, which includes cost of inputs such as seeds, fertilizer, labour; (ii) A2+FL Approach, which includes A2 and the implied cost of family labour (FL); and (iii) C2 Approach, which includes the implied rent on land and interest on capital assets and A2+FL.

Hence, C2 approach is considered to be the most comprehensive approach which can be used to calculate the MSP.

The National Commission on Farmers led by M.S. Swaminathan had recommended for the adoption of C2 Approach for fixing the MSP. However, presently, the MSPs are fixed at least 50% more than cost of production as calculated according to A2+FL approach.

Limitations in the MSP RegimeThe MSP Policy of the Government has come under immense criticism on account of number of reasons. These flaws with the MSP regime have been highlighted by number of committees such as the Committee on Doubling Farmers' income which was headed by Ashok Dalwai. Some of these fundamental flaws include:Promoted Cultivation of Water Intensive Crops: Even though, the Government declares MSP for 23 crops, the procurement is quite strong only for Rice and Wheat. The procurement of other commodities, particularly Pulses and Oilseeds is quite lower. Hence, it has incentivised the cultivation of more water intensive crops such as Rice and Wheat leading to an adverse impact on the Indian Agriculture.Lack of Safeguards: The present MSP regime is not geared to pay compensation to the farmers when they are forced to sell the agricultural commodities in the open market

Dated: 25-May-2020 DNS Notes

below the MSP. Ideally, the MSP regime should be able to compensate such farmers for the losses incurred.Flawed Approach: It has been stated that the fixing of MSP based on A2+FL approach would lead to declaration of lower MSP and hence does not adequately compensate the farmers. Accordingly, some of the economists have pointed out that the MSP should be declared based on the C2 Approach as recommended by Swaminathan Committee. Benefitted only Large Farmers: The Shanta Kumar Committee on FCI reforms has highlighted that the MSP procurement has benefitted only 6% of farmers in India. Hence, only the large farmers which higher surplus of agricultural commodities have got benefitted from MSP. The Small and marginal farmers who comprise of almost 83% of the farming community have failed to get benefitted from the MSP regime.Undue delay: In some of the cases, the Government has not been able to declare the MSPs as per the schedule. These delays in the announcement of the MSPs have not able to able to send the price signals to the farmers on time. Way ForwardIn order to address these problems associated with the MSP regime, the Government has unveiled the PM-AASHA scheme. The Government has to effectively implement the PM-AASHA Scheme so as to improve the agricultural outcomes. Ultimately, the Government must realise that unless the prices received by the farmers increase, we would not be able to realise the vision of doubling farmers' income by the end of 2022.

Dated: 25-May-2020 DNS Notes

Title 2. For farms and farmers (Pg 06)Syllabus Mains: GS Paper III – Indian EconomyTheme AgricultureHighlights

ContextRecently, the Union Finance Minister has announced the 3rd tranche of measures to strengthen Infrastructure Logistics, Governance and administrative Reforms for Agriculture, Fisheries and Food Processing Sectors. As part of 3rd tranche, the Government has converted the COVID-19 crisis into a reform opportunity by undertaking long pending reforms in the agriculture marketing. These reforms related to Agriculture Marketing are:

1. Reform of the existing APMC Acts and Proposal to bring a Central law to regulate Inter-state trading of agricultural commodities

2. Amendments to Essential Commodities Act to enable better price realisation for farmers3. Facilitative Legal Framework for Contract Farming

This article argues that the Government must realize that reforming APMCs is only a small aspect of agriculture marketing. There are other aspects of agricultural marketing such as density of agriculture markets, strong and efficient procurement system, world- class infrastructure of APMCs, enhancing the private sector investment etc. which are as important

Expectation of Government Ground Realities

Farmers allowed to Sell their produce anywhere within India

Markets located away from the villages--> 90% of the Crops sold within the villages to the traders-->Compelled to sell at lower prices.

Poor Participation of Government agencies in procurement--> farmers forced to sell to traders at lower prices-->Low price realization for farmers

More Private Sector Investment in agriculture marketing.

Lack of enthusiasm among the Private sector in setting up of Market yards.

Collection of APMC levy done away with to deregulate Agriculture Marketing

Loss of revenue which otherwise could have been used for improving the infrastructure of existing APMCs.

Proliferation of small unregulated private market yards which charge fee from both farmers and traders but yet do not provide basic infrastructure.

Increase in prices received by the Farmers leading to improvement in their income levels

Study conducted by National Council for applied Economic Research (NCAER)--> No significant improvement in the last 13 years after the repeal of APMC Act.

Dated: 25-May-2020 DNS Notes

as APMC reforms itself. Agricultural Marketing Reforms so farIn order to bring about agriculture marketing reforms, the Central Government has come out with Model Agriculture produce and livestock marketing act, 2017. It has been persuading the state government to adopt the features of this model legislation. Accordingly, around 17 State governments having amended the APMC Act to make it more liberal. For example, Kerala does not have an APMC Act and Bihar repealed it in 2006. Other states such as Karnataka, Maharashtra etc. deregulated fruits and vegetables trade, allowed private markets, introduced a unified trading licence and have introduced a single-point levy of market fee. Many States have also introduced direct marketing of farm produce, examples being the UzhavarSandhai (Tamil Nadu), the Rythu Bazaar (Andhra Pradesh and Telangana), the RaithaSanthe (Karnataka), the Apni Mandi (Punjab) and the Krushak Bazaar – Odisha). Have these Reforms benefitted the farmers??The Bihar Government took a bold decision to repeal the APMC Act in 2006. The agriculture marketing Reforms carried out by Bihar Government presents us with a classical example as to how reforming the APMC Acts alone would not benefit the farmers.

What should be done then?Increase the Market Density: Adequate number of markets should be set up closer to agricultural fields so that the farmers have access to APMCs. This also leads to decrease in transportation costs for the farmers and cut down post-harvest losses. Accordingly, the National Commission for Farmers had recommended that each APMC should serve a market area of around 80sq.km and it should be available to farmers within a radius of 5km.However, an average APMC in India serves an area of around 450 sq.km, which denotes poor access of the farmers to the APMCs. On account of this, the farmers are forced to sell their produce at lower prices outside the APMCs. Organize Small and Marginal Farmers into FPOs: Almost 85% of the farmers in India are small and marginal. These farmers with lower marketable surplus find it difficult to aggregatetheir produce and sell it in the APMCs through auction. Hence, these farmers resort to sell their produce to local agents and traders at much lower prices. Accordingly, these farmers should be organized into FPOs which would enable them to aggregate their produce, carry out value addition and earn higher incomes. Improve Infrastructure in existing APMCs: The infrastructure in the APMCs such as Godowns, Cold chain infrastructure etc. continue to remain quite poor. This leads to improper storage and consequently higher post-harvest losses. Further, most of the APMCs have not able to set up electronic auction platforms which are quite important for offering remunerative prices to the farmers. We must also ensure that all the existing APMCs are connected to e-NAM platform as early as possible to offer diversified market base for the farmers. Suitable Macro-economic Conditions: In the last 2-3 years, the prices of the agricultural commodities had contracted due to decline in the demand within the Indian Economy. This contraction in the prices had in turn led to decline in the income levels of the farmers. Hence, the Government has to realize that no amount of marketing reforms will lead to higher price realisation for farmers if the underlying macroeconomic conditions are unfavourable to agriculture and farmers.Hence, going forward, the reforms in the agriculture marketing should be accompanied by fiscal measures to boost the demand within the economy.

Dated: 25-May-2020 DNS Notes

Title 3. The need for a million worksites now (Page No. 07)Syllabus Mains: GS Paper II – Social IssuesTheme Vulnerable SectionsHighlights Summary

The financial distress caused by the economic lockdown particularly to the poorer sections has increased the demand for MGNREGA work to unprecedented levels and thus elicits a clarion call to revamp the MGNREGA workflow including allocation methodology, scope and payment mechanism in order to be effective.

The article lists down these steps that could help reduce the hardships caused due to the lockdown as highlighted by a number of surveys.

Rise in demand of MGNREGA Work According to a survey conducted by Azim Premji University about 74% of the

respondents were consuming less food than they were in the pre-lockdown period About 80% of them had not earned any income during the lockdown and 90% suffered

financial stress. Notwithstanding the advantages of doubling of PDS provisions, about 500 million are

still out of the PDS net owing to lack of coverage. Besides PDS provisions are not adequate enough to ensure nutrition security.

Thus the natural choice to deal with the crisis is to put more money in people’s hands which is reflected in increased demand for MGNREGA work in the recent times.

However the MGNREGA workflow is clogged with some structural issues and thus needs a revamp.

Issues with MGNREGA Low wages Lack of timely payments 4% payment rejection rate Tedious methodology of enrollment requiring workers to take 3rd party assistance for

enrollment.Steps to revamp MGNREGA Workflow

Workers should be allowed to enroll at the worksite to eliminate the interference of 3rd party

The scope of MGNREGA work should be expanded by expanding the list of works permissible under the act.

Gram rozgar sevaks can be appointed to assist in work enrollment Implementation process should be simplified The payment system should be switched back to cash payment at least during the crisis

as it acts as an incentive to the workers to enroll

Dated: 25-May-2020 DNS Notes

Title 4. Howrah’s botanical garden now a graveyard of 1000 trees (Pg 10)Syllabus GS Mains III – Ecology, Environment and BiodiversityTheme Ecological threat

Dated: 25-May-2020 DNS Notes

Title 5. Failing to perform as a constitutional court (Pg 07)Syllabus Mains: GS Paper II – Polity and GovernanceTheme JudiciaryHighlights

Context: As covid leaves thousand dead in its wake, another problem has engulfed India. That is the Migrant crisis.

o They have no work, no source of income, no access to basic necessities, no quality testing facilities, no protective gear, and no means to reach home.

But According to author, Supreme Court has failed to satisfactorily acknowledge that the fundamental rights of migrant labourers have been violated, and ignored these workers when they most needed protection.

The judiciary becomes the all-important watchdog in this situation.

Worrisome steps taken by SC: Refusal to entertain Petitions/PILs on matters dealing with migrants. It is actively dissuading petitioners from approaching the courts for redress because

the Court determines that it is the executive’s responsibility

Why is that a problem? Only the Supreme Court can enforce accountability of the Centre in these matters.

o Aswe know Centre has issued many directives, but designated the States as the implementing authorities.But the issue of migrant labourers is inherently an inter-State issue, and States have had to tackle it both internally as well as inter-se.

So following questions needs to be clearly answered: o Who will guarantee safe transport for the return of migrant workers? o When in quarantine, who will grant them a sustenance allowance, or look after

their health issues, or look after needs besides food? o Who will ensure job loss compensation? o Who will conduct regular and frequent testing?

In rejecting or adjourning these petitions, the Court has made several questionable remarks: Remark 1: The condition of migrant labourers is a matter of policy and thus, does not

behove judicial interference; o But, there are numerous judgments where it has laid out matters of policy:

for instance, the Vishaka guidelines on sexual harassment in the workplace; the right to food; and various environmental protection policies. In these cases, the Court formulated policies and asked the States to implement them.

Remark 2: governments already provide labourers with two square meals a day, so what more can they possibly need (surely, ‘not wages’);

Remark 3: Incidents like the horrific accident where migrant labourers sleeping on railway tracks were killed cannot be avoided because ‘how can such things be stopped’.

o But in the past various judgments of SC have led to widespread reforms in Road sector:

Eg: good Samaritan law. Remark 4: Lawyers have been castigated for approaching the Court ‘merely’ on the

basis of reports. o Well nothing prevents the Court from monitoring the situation itself directly,

Dated: 25-May-2020 DNS Notes

especially regarding the state’s obligations: it could easily direct bureaucrats to collect empirical data on the ground, as it has done before.