Issue0: Suffering of farmers due to climate changes, droughts and disasters

Background on issue:

The spiraling prices of vegetable and onion in 2019 second half due to climate changes leading to droughts in
some and floods in others.

 Arguments
India need well-tailored farm measures to balance the national requirement with farmer aspiration
instead of Populist measures (2019 first half) having lower influence on economic
 Reasons and evidences:
o Even after implementation of PM-KISAN (PM KISAN SAMMAN NIDHU) in first half the burden
of farmer and consumer in the second half due to floods and drought reflect 2 things:
 Populist measures have a low sway on economics.
 Farm sector continue huge losses due climate induced disasters hence new
measures needed.
 Solution:
 Disparity between agricultural expenditure and growth drivers must be addressed. Despite
higher growth in livestock and fisheries expenditure was less, it must be increased with
providing resource to poor rural families to raise decelerating GDP.
 Use of block chain technology to make platform that facilitate connection between farmers,
traders, agencies, institutions etc. and help in price fluctuations.
 Large scale investment in agriculture motivated monoculture degrading soil culture, so small
investment or incentive based investment should be done to encourage sustainable practices
like agroforestry, organic farming etc.
 Establishing farm data agency keeping the data of beneficiaries of land, digitalization of land
records resulting in better targeting of subsidies and implementation of schemes.
 Establishment of farmer welfare commissions both at state and central level for assessing
agricultural issues and policies.
 Establishment of Indian Agricultural Service in line with Agriculture Research Service of US.
 Conclusions

In the era of global climatic and non-climatic uncertainty we need well-tailored farm measures
beyond short-run sops to balance national requirement with farmer aspiration. The promised ache
din should include our farmers too.

Issue1: Central has limited the premium subsidy it pays under its crop insurance schemes .
Background on issue:

Central decides to cap the Centre’s premium subsidy under PMFBY (Pradhan Mantri Fasal Bima Yojana) and
Restructured Weather Based Crop Insurance Scheme (RWBCIS) schemes for premium rates upto 30 percent for
unirrigated and 25 for irrigated crops.

 Arguments
o One interpretation is that the burden of premium subsidy will go up for states.
Ex. Previous system,
If amt insured = 1000,
Rate of actual premium = 40% than
Premium paid by farmer = 2% of 1000 = 20
Premium paid by state n central = 19% of 1000

New system,
Amt insured = 1000,
 Rate = same 40%
By farmer = 2% of 1000 = 20
By central = half of (30% – farmer %) = 14%
By state = 40 – 14 = 24%
Second interpretation that the center may stop supporting insurance of crops with premium rate
above 30%.

 Reasons and evidences:

o Second interpretation follows from official statement release by government in which crops
having high rate of premium will be handled by mitigation programme taken by state and in
consultation from private stakeholders.
o Centre wants to disincentivize certain crops in areas where there is high risk in terms of crop
premium.

 Solution and consequences:

 Certain states like M.P. have already not paid its share of premium and farmer haven’t
received their claims.
 Conclusions
The move will lead to rise is premium as no. of enrolled farmer and the area under insurance will
decrease drastically. The scheme are compulsory for all loanee farmers. They are the majority
enroller in such scheme so if they back out then no. of insured farmer will decrease significantly.