Growth in Agri GVA deflator shows a declining trend in comparison to growth in other sectoral GVA deflators March 28, 2019
Recent studies and media reports have confirmed that Indian farmers are facing non-remunerative and sometimes falling prices. A past news alert by the Inclusive Media for Change team indicated deflation in wholesale prices of 8 kharif crops (viz. maize, arhar, moong, urad, groundnut, soybean, sunflower seed and Niger seed) on average between 2016-17 and 2018-19. Based on data analysis, that news alert also demonstrated how the rural areas have witnessed a higher rate of inflation in services (such as health and education) vis-à-vis the rate of inflation in Consumer Food Price Index (CFPI).
A similar picture emerges if we check the performance of Agri Gross Value Added (GVA) deflator vis-à-vis other sectoral GVA deflators. After calculating the various sectoral GVA deflators, it could be observed that the year-on-year (y-o-y) growth rate in Agri GVA deflator (an alternative measure of inflation) has fallen over the years during the period from 2012-13...
PM Fasal Bima Yojana is suffering from low coverage since the last 2 years March 13, 2019
The budgetary allocation for Pradhan Mantri Fasal Bima Yojana (PMFBY) as a proportion of total budgetary expenditure has been reduced marginally during the Interim Budget 2019-20. It may have happened because the coverage of gross cropped area under the scheme could not keep pace with the target that was set during the last two years.
The Status of Implementation of Budget Announcements 2017-18, which was presented during the Union Budget 2018-19, clearly states that the coverage of the PMFBY would be increased from 30 percent of gross cropped area in 2016-17 to 40 percent in 2017-18, and further to 50 percent in the year 2018-19.
Yet when a reply by the Minister of State in the Ministry of Agriculture and Farmers' Welfare dated 7th August, 2018 to an unstarred question (question no. 3398) in the Lok Sabha is consulted, it is learned that the proportion of gross sown area covered...
Apart from inconsistent data on coverage from different sources, target was not achieved in case of PMKSY-Per Drop More Crop February 28, 2019
How is it possible that we get different figures on area brought under micro-irrigation pertaining to the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)-Per Drop More Crop (PDMC)--a scheme which is implemented by the Ministry of Agriculture & Farmers' Welfare?
The dashboard (https://pmksy.gov.in/mis/frmDashboard.aspx) of PMKSY-Per Drop More Crop clearly shows that 11.25 lakh hectare was brought under micro-irrigation in the financial year 2017-18. Please check chart-1.
Chart 1: Physical target versus achievement -- PMKSY-Per Drop More Crop for micro-irrigation (in lakh hectares)
Source: Dashboard of PMKSY-Per Drop More Crop (accessed on 13th February, 2019),
However, as per a reply in the Lok Sabha (unstarred Question No. 5 for reply on 11th December, 2018) around 10.48 lakh hectare area was covered under micro-irrigation pertaining to the PMKSY-Per Drop More Crop. Kindly consult table-1. The dashboard gives a higher figure on area brought under micro-irrigation (PMKSY-Per Drop More Crop) in comparison to the figure that...
There is so much confusion about the Pradhan Mantri Kisan Samman Nidhi Yojana February 7, 2019
Against the backdrop of the Finance Minister Shri Piyush Goyal announcing the Pradhan Mantri Kisan Samman Nidhi (PMKSN) programme during his budget speech on 1st February, 2019, it becomes essential to differentiate between 12.56 crore operational holding households (enumerated, as per the Agriculture Census) and 13.33 crore ownership holding households (estimated, as per the 70th round National Sample Survey report no. 571) pertaining to size upto 2 hectares.
In his budget speech, the finance minister said that under the new programme landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000/- per year, which will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs. 2,000/- each. He added that nearly 12 crore small and marginal farmer families are expected to benefit under the PMKSN programme.
Most commentators and journalists based on the...
MSP was not 1.5 times the cost of production for most kharif crops during the last 6 agricultural years January 15, 2019
In its 2014 election manifesto, the Bharatiya Janata Party (BJP), among other things, promised to "take steps to enhance the profitability in agriculture, by ensuring a minimum of 50% profits over the cost of production".
In his 2018-19 Union budget speech too, the Finance Minister Shri Arun Jaitley informed the Parliament that the 2014 election manifesto of the BJP had stated that the farmers should get at least 1.5 times the cost of their production. So, the ruling NDA government at the Centre, which has been sensitive to that resolution, declared a minimum support price (MSP) for the majority of rabi crops during rabi marketing season (RMS) 2018-19 at least at 1.5 times the cost of production, said Jaitley. He added that the NDA government decided to extend that formula for fixing MSP for the rest of crops (viz. kharif crops). So, his government decided to fix MSP for all...