PPT: Agricultural Committee Recommendations Notes | EduRev

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UPSC : PPT: Agricultural Committee Recommendations Notes | EduRev

 Page 1


Miscellaneous economics topics 
Swaminathan commission report 
The five reports of the National Commission on Farmers contain suggestions to achieve the 
goal of “faster and more inclusive growth” as envisaged in the Approach to 11
th
 Five Year 
Plan. The fifth report is the most important among the reports submitted by the National 
Commission on Farmers. 
Following are the recommendations 
1. Land reform –  
• Reforms in tenancy laws, land leasing, distribution of ceiling surplus land and wasteland. 
• Prevent diversion of prime agricultural land and forest to the corporate sector for non-agricultural 
purposes. 
• Wherever feasible, landless labour households should be provided with at least 1 acre per 
household, which will give them space for home gardens and animal rearing. 
• Establish a National Land Use Advisory Service, which would have the capacity to link land 
use decisions with ecological meteorological and marketing factors on a location and season-
specific basis 
2. Water –  
• Rainwater harvesting and aquifer recharge should be mandatory and farmers must be 
provided with financial assistance to invest in the replenishment of their renewable resource. 
• improved irrigation practices, including sprinkler and drip irrigation, should receive priority 
attention. 
• A water literacy movement should be launched and regulations should be developed for the 
sustainable use of groundwater. 
• A Pani Panchayat in every village can help in getting the available water distributed on an 
equitable basis. 
• In water-scarce areas, the land use system should place emphasis on the cultivation of high 
value – low water requiring crops, such as pulses and oilseeds. 
• Water Users’ Associations may be encouraged to gain expertise in maximizing the benefits of 
the available water.  
• In drought-prone areas, a Drought Code may be introduced which details the action needed to 
minimize the impact of an adverse monsoon and maximize the benefits of a good season.  
3. Livestock –  
Page 2


Miscellaneous economics topics 
Swaminathan commission report 
The five reports of the National Commission on Farmers contain suggestions to achieve the 
goal of “faster and more inclusive growth” as envisaged in the Approach to 11
th
 Five Year 
Plan. The fifth report is the most important among the reports submitted by the National 
Commission on Farmers. 
Following are the recommendations 
1. Land reform –  
• Reforms in tenancy laws, land leasing, distribution of ceiling surplus land and wasteland. 
• Prevent diversion of prime agricultural land and forest to the corporate sector for non-agricultural 
purposes. 
• Wherever feasible, landless labour households should be provided with at least 1 acre per 
household, which will give them space for home gardens and animal rearing. 
• Establish a National Land Use Advisory Service, which would have the capacity to link land 
use decisions with ecological meteorological and marketing factors on a location and season-
specific basis 
2. Water –  
• Rainwater harvesting and aquifer recharge should be mandatory and farmers must be 
provided with financial assistance to invest in the replenishment of their renewable resource. 
• improved irrigation practices, including sprinkler and drip irrigation, should receive priority 
attention. 
• A water literacy movement should be launched and regulations should be developed for the 
sustainable use of groundwater. 
• A Pani Panchayat in every village can help in getting the available water distributed on an 
equitable basis. 
• In water-scarce areas, the land use system should place emphasis on the cultivation of high 
value – low water requiring crops, such as pulses and oilseeds. 
• Water Users’ Associations may be encouraged to gain expertise in maximizing the benefits of 
the available water.  
• In drought-prone areas, a Drought Code may be introduced which details the action needed to 
minimize the impact of an adverse monsoon and maximize the benefits of a good season.  
3. Livestock –  
• An urgent need for establishing Livestock Feed and Fodder Corporations at the State Level for 
ensuring availability of quality fodder and feed. 
• National Livestock Development Council may be established to give integrated attention to all 
aspects of this important sector, such as breeding policy, feed and fodder, healthcare etc. 
• Poultry rearing should be recognized as an agricultural activity and appropriate support should be 
provided to backyard poultry farmers to establish Small Holders’ Poultry Estates. 
4. Fisheries –  
• Fish for All Training and Capacity Building Centres” which can impart training to fisher 
families in all aspects of the capture/culture–consumption chain 
• Quality literacy to safeguard the harvested fish from Salmonella and other infections capable of 
producing mycotoxin 
• Inland aquaculture, including the culture of ornamental fish and air-breathing fish, for additional 
income by providing necessary space in ponds and reservoirs. 
5. credit and insurance –  
• There is a need for both credit and insurance literacy in villages. Gyan Chaupals can help in this 
task. 
• Establish an Agriculture Risk Fund to provide relief to farmers in the aftermath of successive 
natural calamities. 
• Kisan Credit Cards should be issued to women speedily with joint pattas to house/agricultural 
land as collateral. 
• Drought-prone areas should have a 4-5 year repayment cycle for crop loans, taking into account 
the management of risk. 
6. Other areas –  
• Encourage Cooperative farming, SHGs, Contract farming, Farmer producer 
organizations etc 
• Youth will be attracted to take to farming as a profession only if farming becomes economically 
rewarding and intellectually stimulating. Educated youth should be helped through a form 
of Venture Capital Fund, low-interest loans and allotment of wastelands for setting up agri-clinics 
and production-cum-processing centres  
• M S Swaminathan committee  recommended , to fix minimum support prices (MSP) for 
crops at levels “at least 50 per cent more than the weighted average cost of 
production”.Plus, the scope of MSP should be expanded to cover other crops. 
Page 3


Miscellaneous economics topics 
Swaminathan commission report 
The five reports of the National Commission on Farmers contain suggestions to achieve the 
goal of “faster and more inclusive growth” as envisaged in the Approach to 11
th
 Five Year 
Plan. The fifth report is the most important among the reports submitted by the National 
Commission on Farmers. 
Following are the recommendations 
1. Land reform –  
• Reforms in tenancy laws, land leasing, distribution of ceiling surplus land and wasteland. 
• Prevent diversion of prime agricultural land and forest to the corporate sector for non-agricultural 
purposes. 
• Wherever feasible, landless labour households should be provided with at least 1 acre per 
household, which will give them space for home gardens and animal rearing. 
• Establish a National Land Use Advisory Service, which would have the capacity to link land 
use decisions with ecological meteorological and marketing factors on a location and season-
specific basis 
2. Water –  
• Rainwater harvesting and aquifer recharge should be mandatory and farmers must be 
provided with financial assistance to invest in the replenishment of their renewable resource. 
• improved irrigation practices, including sprinkler and drip irrigation, should receive priority 
attention. 
• A water literacy movement should be launched and regulations should be developed for the 
sustainable use of groundwater. 
• A Pani Panchayat in every village can help in getting the available water distributed on an 
equitable basis. 
• In water-scarce areas, the land use system should place emphasis on the cultivation of high 
value – low water requiring crops, such as pulses and oilseeds. 
• Water Users’ Associations may be encouraged to gain expertise in maximizing the benefits of 
the available water.  
• In drought-prone areas, a Drought Code may be introduced which details the action needed to 
minimize the impact of an adverse monsoon and maximize the benefits of a good season.  
3. Livestock –  
• An urgent need for establishing Livestock Feed and Fodder Corporations at the State Level for 
ensuring availability of quality fodder and feed. 
• National Livestock Development Council may be established to give integrated attention to all 
aspects of this important sector, such as breeding policy, feed and fodder, healthcare etc. 
• Poultry rearing should be recognized as an agricultural activity and appropriate support should be 
provided to backyard poultry farmers to establish Small Holders’ Poultry Estates. 
4. Fisheries –  
• Fish for All Training and Capacity Building Centres” which can impart training to fisher 
families in all aspects of the capture/culture–consumption chain 
• Quality literacy to safeguard the harvested fish from Salmonella and other infections capable of 
producing mycotoxin 
• Inland aquaculture, including the culture of ornamental fish and air-breathing fish, for additional 
income by providing necessary space in ponds and reservoirs. 
5. credit and insurance –  
• There is a need for both credit and insurance literacy in villages. Gyan Chaupals can help in this 
task. 
• Establish an Agriculture Risk Fund to provide relief to farmers in the aftermath of successive 
natural calamities. 
• Kisan Credit Cards should be issued to women speedily with joint pattas to house/agricultural 
land as collateral. 
• Drought-prone areas should have a 4-5 year repayment cycle for crop loans, taking into account 
the management of risk. 
6. Other areas –  
• Encourage Cooperative farming, SHGs, Contract farming, Farmer producer 
organizations etc 
• Youth will be attracted to take to farming as a profession only if farming becomes economically 
rewarding and intellectually stimulating. Educated youth should be helped through a form 
of Venture Capital Fund, low-interest loans and allotment of wastelands for setting up agri-clinics 
and production-cum-processing centres  
• M S Swaminathan committee  recommended , to fix minimum support prices (MSP) for 
crops at levels “at least 50 per cent more than the weighted average cost of 
production”.Plus, the scope of MSP should be expanded to cover other crops. 
•
M.S Swaminathan did not elaborate on what really constituted “weighted average cost 
of production” in its report submitted in October 2006. The Commission for 
Agricultural Costs and Prices (CACP), on the other hand, gives three definitions of 
production costs: A2, A2+FL and C2. 
•
A2 costs basically cover all paid-out expenses, both in cash and in kind, incurred by 
farmers on seeds, fertilisers, chemicals, hired labour, fuel, irrigation, etc. A2+FL cover 
actual paid-out costs plus an imputed value of unpaid family labour. C2 costs are more 
comprehensive, accounting for the rentals and interest forgone on owned land and 
fixed capital assets respectively, on top of A2+FL. 
•
Formation of Market stabalization fund and enactment of Food guarantee act. Both 
these recommendations are accepted now. 
Shanta kumar committee report 
1. FCI should transfer all procurement operations atleast to states who have considerable 
experience and infrastructure. These are Andhra Pradesh, Chhattisgarh, Haryana, 
Madhya Pradesh, Odisha and Punjab. FCI should instead procure only the surplus which 
is contributed to the Central pool by these states to support farmers in distress due to 
small landholdings and thus have to settle with a sale price far below the MSP in states 
like UP , Bihar, West Bengal, Assam. In addition, it should channelize this surplus for 
various subsidy acts like NFSA. 
2. There should be uniformity and rationality in procurement operations by implementing 
3 points: 
3. The Centre will not accept any additional/surplus food-grains from states who give 
subsidy/bonus to farmers above the MSP . Such states will have to bear all costs 
(storage and distribution) themselves. 
4. Uniform statutory levies among all states around 3 or 4% of MSP . 
5. Stringent quality checks at the when accepting food grains for Central pool. 
6. Encourage and speeden the Negotiable Warehouse Receipt System (NWRS) under which 
farmers can park their produce in registered warehouses and even get upto 80% 
advance from banks @ MSP . This will considerably reduce the storage costs and 
responsibility of the government. 
7. Prioritise pulses and oilseeds and their MSP should be taken seriously and implemented 
uniformly across the country. MSP has been largely operational in wheat and rice and 
that too only in some select states, while the other important food-grains have 
suffered in their backdrop. Also, Government should streamline trade policy and MSP . 
8. NFSA should be revised with no subsidy to be offered to states which don’t have 
computerised the list of beneficiaries ( which can be verified) and have not set up 
vigilance committees to check pilferage. This has been done to plug leakages in the 
PDS whose range in some states has gone upto 70%. 
Page 4


Miscellaneous economics topics 
Swaminathan commission report 
The five reports of the National Commission on Farmers contain suggestions to achieve the 
goal of “faster and more inclusive growth” as envisaged in the Approach to 11
th
 Five Year 
Plan. The fifth report is the most important among the reports submitted by the National 
Commission on Farmers. 
Following are the recommendations 
1. Land reform –  
• Reforms in tenancy laws, land leasing, distribution of ceiling surplus land and wasteland. 
• Prevent diversion of prime agricultural land and forest to the corporate sector for non-agricultural 
purposes. 
• Wherever feasible, landless labour households should be provided with at least 1 acre per 
household, which will give them space for home gardens and animal rearing. 
• Establish a National Land Use Advisory Service, which would have the capacity to link land 
use decisions with ecological meteorological and marketing factors on a location and season-
specific basis 
2. Water –  
• Rainwater harvesting and aquifer recharge should be mandatory and farmers must be 
provided with financial assistance to invest in the replenishment of their renewable resource. 
• improved irrigation practices, including sprinkler and drip irrigation, should receive priority 
attention. 
• A water literacy movement should be launched and regulations should be developed for the 
sustainable use of groundwater. 
• A Pani Panchayat in every village can help in getting the available water distributed on an 
equitable basis. 
• In water-scarce areas, the land use system should place emphasis on the cultivation of high 
value – low water requiring crops, such as pulses and oilseeds. 
• Water Users’ Associations may be encouraged to gain expertise in maximizing the benefits of 
the available water.  
• In drought-prone areas, a Drought Code may be introduced which details the action needed to 
minimize the impact of an adverse monsoon and maximize the benefits of a good season.  
3. Livestock –  
• An urgent need for establishing Livestock Feed and Fodder Corporations at the State Level for 
ensuring availability of quality fodder and feed. 
• National Livestock Development Council may be established to give integrated attention to all 
aspects of this important sector, such as breeding policy, feed and fodder, healthcare etc. 
• Poultry rearing should be recognized as an agricultural activity and appropriate support should be 
provided to backyard poultry farmers to establish Small Holders’ Poultry Estates. 
4. Fisheries –  
• Fish for All Training and Capacity Building Centres” which can impart training to fisher 
families in all aspects of the capture/culture–consumption chain 
• Quality literacy to safeguard the harvested fish from Salmonella and other infections capable of 
producing mycotoxin 
• Inland aquaculture, including the culture of ornamental fish and air-breathing fish, for additional 
income by providing necessary space in ponds and reservoirs. 
5. credit and insurance –  
• There is a need for both credit and insurance literacy in villages. Gyan Chaupals can help in this 
task. 
• Establish an Agriculture Risk Fund to provide relief to farmers in the aftermath of successive 
natural calamities. 
• Kisan Credit Cards should be issued to women speedily with joint pattas to house/agricultural 
land as collateral. 
• Drought-prone areas should have a 4-5 year repayment cycle for crop loans, taking into account 
the management of risk. 
6. Other areas –  
• Encourage Cooperative farming, SHGs, Contract farming, Farmer producer 
organizations etc 
• Youth will be attracted to take to farming as a profession only if farming becomes economically 
rewarding and intellectually stimulating. Educated youth should be helped through a form 
of Venture Capital Fund, low-interest loans and allotment of wastelands for setting up agri-clinics 
and production-cum-processing centres  
• M S Swaminathan committee  recommended , to fix minimum support prices (MSP) for 
crops at levels “at least 50 per cent more than the weighted average cost of 
production”.Plus, the scope of MSP should be expanded to cover other crops. 
•
M.S Swaminathan did not elaborate on what really constituted “weighted average cost 
of production” in its report submitted in October 2006. The Commission for 
Agricultural Costs and Prices (CACP), on the other hand, gives three definitions of 
production costs: A2, A2+FL and C2. 
•
A2 costs basically cover all paid-out expenses, both in cash and in kind, incurred by 
farmers on seeds, fertilisers, chemicals, hired labour, fuel, irrigation, etc. A2+FL cover 
actual paid-out costs plus an imputed value of unpaid family labour. C2 costs are more 
comprehensive, accounting for the rentals and interest forgone on owned land and 
fixed capital assets respectively, on top of A2+FL. 
•
Formation of Market stabalization fund and enactment of Food guarantee act. Both 
these recommendations are accepted now. 
Shanta kumar committee report 
1. FCI should transfer all procurement operations atleast to states who have considerable 
experience and infrastructure. These are Andhra Pradesh, Chhattisgarh, Haryana, 
Madhya Pradesh, Odisha and Punjab. FCI should instead procure only the surplus which 
is contributed to the Central pool by these states to support farmers in distress due to 
small landholdings and thus have to settle with a sale price far below the MSP in states 
like UP , Bihar, West Bengal, Assam. In addition, it should channelize this surplus for 
various subsidy acts like NFSA. 
2. There should be uniformity and rationality in procurement operations by implementing 
3 points: 
3. The Centre will not accept any additional/surplus food-grains from states who give 
subsidy/bonus to farmers above the MSP . Such states will have to bear all costs 
(storage and distribution) themselves. 
4. Uniform statutory levies among all states around 3 or 4% of MSP . 
5. Stringent quality checks at the when accepting food grains for Central pool. 
6. Encourage and speeden the Negotiable Warehouse Receipt System (NWRS) under which 
farmers can park their produce in registered warehouses and even get upto 80% 
advance from banks @ MSP . This will considerably reduce the storage costs and 
responsibility of the government. 
7. Prioritise pulses and oilseeds and their MSP should be taken seriously and implemented 
uniformly across the country. MSP has been largely operational in wheat and rice and 
that too only in some select states, while the other important food-grains have 
suffered in their backdrop. Also, Government should streamline trade policy and MSP . 
8. NFSA should be revised with no subsidy to be offered to states which don’t have 
computerised the list of beneficiaries ( which can be verified) and have not set up 
vigilance committees to check pilferage. This has been done to plug leakages in the 
PDS whose range in some states has gone upto 70%. 
9. The coverage of NFSA should be brought down from 67% population to 40%. This will 
comfortably cover the BPL population and even some above that. Also, the targeted 
beneficiaries must be given 6 months ration in advance, right after the procurement 
season draws to a close. This will bring down storage overheads borne by government 
and procurement agencies. 
10. Another landmark recommendation is the introduction of cash transfers in PDS in cities 
with a population of over 1 million. These can be done via Aadhaar numbers of 
Pradhan Mantri Jan Dhan Yojana. 
11. FCI should outsource its food-grain stocking operations to agencies like CWC, SWC, 
private warehouses etc. 
12. Direct Cash Transfers to farmers (@ INR 7000/ha) to help them raise productivity and 
overall food production in the country. This will empower them and reduce their 
dependence on money-lenders. 
13. Complete end-to-end computerisation of the food management system in India. 
Thus, though the recommendations may seem to plug-in many loopholes but such massive 
restructuring will not bear much fruit as the main issue of food pricing and storage are not 
done by suo moto decisions of FCI. Also, with NFSA in place it is highly unlikely that 
government can roll-back subsidies for the time-being. MSP has brought in obligations for 
better storage facilities. The underlying question is thus, how far these recommendations will 
be adopted, in face of stiff reluctance from some states. 
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