The Ministry of Agriculture is introducing a novel index to assess the success of states in implementing agricultural reform policies and programs sanctioned by the Indian government. The groundbreaking concept is to view farming not merely as a production-centric activity geared towards food security, but also as an entrepreneurial business operated by farmers. This index will appraise each state’s performance based on several sub-parameters including Marketing Reforms, Reducing cost of inputs, Governance and Land reforms, Risk Mitigation, Increasing production/productivity, and Investment in and for agriculture.
The Importance of this Initiative
This proactive measure will foster a competitive spirit among the states, spurring them to perform at their peak. It equips the central government with the ability to identify and rectify scheme shortfalls, thereby assisting states sluggish in execution. As a result of this index, high-performing states could be rewarded with fund allocation tied to their performance.
Government Measures for Farm Sector Reforms
Several strategic measures have been implemented by the government to facilitate farm sector reforms. These include:
Marketing Reforms
In a bid to end the monopoly of Agricultural Produce Market Committee (APMC), the government introduced the “Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017”. Besides removing APMC area limitations, the act also creates conditions for the establishment of private wholesale markets and direct contact between farmers and consumers.
Reducing Input Cost
Organic farming initiatives like “Paramparagat Krishi Vikas Yojana (PKVY)” and the “Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)” aim to reduce cultivation costs while securing premium prices for the farmers’ produce.
Governance and Structural Reforms
Through “Contract Farming” and the “Right of Lease Farming”, the government is enabling farmers to enter pre-season price agreements for their produce and ensuring comprehensive land ownership rights.
Risk Mitigation
The Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to provide insurance at minimal premiums with added benefits, covering risks from pre-sowing to post-harvest stages.
| Reform | Description |
|---|---|
| Marketing Reforms | Ends Agricultural Produce Market Committee (APMC) monopoly and paves way for private wholesale markets |
| Reducing Input Cost | Promotes organic farming to lower cultivation costs and secure premium prices |
| Governance and Structural Reforms | Allows pre-season price agreements and ensures land ownership rights |
| Risk Mitigation | Provides low premium insurance covering risks from pre-sowing to post-harvest stages |
Agricultural Marketing & Farm Friendly Reforms Index
The NITI Aayog launched this index to rank states and UTs based on the implementation of seven provisions related to farm sector reforms. This indicator reveals ease of doing agribusiness while also providing farmers with wider options for selling their produce.
