VOLUME 3

Emerging Trends In Agricultural Economics Agribusiness: An Edited Anthology Volume 3

Vaishali Thakur Ph.D. Research Scholar in the Department of Agribusiness
Management at Dr. Y S Parmar University of Horticulture & Forestry, Nauni,
Solan, Himachal Pradesh. She completed her B.Sc. (Hons.) Horticulture in
2018 and MBA Agribusiness Management in 2020 from Dr. Y S Parmar
University of Horticulture & Forestry, Nauni, Solan, Himachal Pradesh. Miss
Vaishali Thakur has good experience in the field of Farm Business
Emerging Trends in
Management and Human Resource Management. She has contributed to
many publications including conference papers and book chapters.

Suman Chaudhary completed her B.Sc. (Hons.) in Agriculture and Ph.D.

from Swami Keshwanand Rajasthan Agricultural University, Bikaner and
M.Sc. (Agriculture) in Agricultural Economics from Sri Karn Narendra
Agricultural University, Jobner, Jaipur. At present she is working as Assistant
Professor at Govt. Agricultural College, Maulasar (Agricultural University,
Jodhpur). Mrs. Chaudhary has research experience in price forecasting and
data analysis of about 6 years. She has contributed to many publications
including research articles, popular articles, conference papers and book
chapters.

Lalenpuii Ph.D. Research Scholar in the Department of Agricultural

Economics at Indira Gandhi Krishi Vishwavidyalaya, Raipur, Chhattisgarh Editors : -
joined through ICAR-SRF. She completed her B.Sc. (Hons.) Forestry in 2021
and M.Sc. (Agriculture) Agricultural Economics in 2022 from Dr YS Parmar Vaishali Thakur
University of Horticulture & Forestry, Nauni, Solan, Himachal Pradesh. Miss Suman Chaudhary
Lalenpuii has good experience in the field of forecasting price and trend
analysis of agriculture produce. She has authored several research papers in Lalenpuii
reputed National and International Journals.
Mriganka Barman
Mriganka Barman Ph.D. Research Scholar in the Department of Agricultural Vijender Kumar
Economics and Farm Management at Assam Agricultural University,Jorhat,
Assam has completed his B.Sc. (Hons.) Agri in 2020 and M.Sc. (Agriculture)
in Agricultural Economics in 2022 from AAU, Jorhat. He received the ''Best
Oral Presenter Award'' at International Conference on Climate Change and
Agroecosystem (INAGMET) 2024,BHU for his research work on economic
analysis of climate resilient agro technologies. Mr. Barman has contributed to
many publications including research articles, book chapters, popular
articles, conference papers .

Vijender Kumar Ph.D. Research Scholar in the Department of Agricultural

Economics and Management at Rajasthan College of Agriculture, MPUA&T,
Udaipur. He has completed B.Sc. (Hons.) in Agriculture (2019) and an M.Sc.
(Ag.) in Agricultural Economics (2021) from Swami Keshwanand Rajasthan
Agricultural University, Bikaner, where he established a strong academic
record. His research interests lie in organic farming, dairy cooperatives, and
women's empowerment in livestock. He has actively contributed to his field
through publications, including research articles, popular articles,
conference papers, and book chapters.

Stella International Publication

# 1781/3, Urban Estate,
Kurukshetra-136118 (Haryana)
E-mail: [email protected] MRP: T 990.00
Stella International Publication
Kurukshetra
 Emerging Trends in Agricultural
Economics Agribusiness: An Edited
Anthology Volume 3

i
Emerging Trends in
Agricultural
Economics
Agribusiness: An
Edited Anthology
(Volume-3)

Editors
Vaishali Thakur
Suman Chaudhary
Lalenpuii
Mriganka Barman
Vijender Kumar

Stella International TM
Publication

ii
Copyright © 2024, Stella International Publication TM

All rights reserved. Neither this book nor any part may be reproduced or used in
any form or by any means, electronic or mechanical, including photocopying,
microfilming, recording or information storage and retrieval system, without the
written permission of the publisher and author.

Edition: 1st
Publication Year: 2024
ISBN: 978-81-976479-6-3
Price: ₹ 990/-

Published by:
Stella International Publication
1781-3, U.E., Kurukshetra
Haryana 136118 (India)
Email: [email protected]
Website: www.stellainternationalpublication.com

iii
 Preface
Welcome to "Emerging Trends in Agricultural Economics:
Agribusiness: An Edited Anthology Volume 3," a pivotal volume that
explores the dynamic interplay between agriculture and economics in
today's rapidly changing global market. This edition, adeptly edited by
Vaishali Thakur, Suman Chaudhary, Lalenpuii, Mriganka Barman, and
Vijender Kumar, aims to bridge theoretical knowledge and practical
application, illuminating the path forward for agribusiness in the 21st
century.
The field of agricultural economics is at a crossroads, facing
global challenges such as climate change, population growth, and shifting
market demands. This volume provides an in-depth examination of how
emerging trends in agribusiness are shaping the future of agriculture, from
the adoption of sustainable practices to the integration of digital
technologies.
Each chapter, contributed by experts in the field, delves into
significant topics including sustainable agriculture development,
agricultural policy analysis and reforms, and innovative technology
adoption in agriculture. The book covers a broad spectrum of issues,
offering both macro and microeconomic analyses of current trends and
providing actionable strategies for stakeholders in the agricultural sector.
We are profoundly grateful to all the contributors whose
dedication and expertise have enriched this volume. Their rigorous
research and forward-thinking perspectives provide readers with a
thorough understanding of the complexities of agricultural economics
today. We also extend our gratitude to Stella International Publication for
their commitment to disseminating high-quality academic literature.
To our readers, we present this third volume with the hope that it
will serve as a valuable resource for students, academics, policymakers,
and practitioners alike. May it inspire innovative thinking and practical
solutions that will advance the field of agricultural economics and support
sustainable growth and development in agribusiness across the globe.

Editors

iv
 Contents

Preface iv

1. Introduction to Emerging Trends in Agricultural Economics 1

Shaurya Sharma, Sugam Sharma, S.P. Singh and Sudhakar
Dwivedi
2. Sustainable Agriculture Development: Economic 11
Perspectives
Venkannagari Sriya
3. Agriculture Policy Analysis and Reforms 32
Komal Sharma, Nandita Sharma, Kumari Ankita, Taruna Devi,
Aanchal Sharma and Aman Sharma
4. Rural Development Strategies and Policies 52
Nagaraju Kuruva, Vilakar Kayitha and Shaik Muneer
5. Innovation and Technology Adoption in Agriculture 77
Akshita Vashishth and Chanchal
6. Agriculture Marketing Strategies and Challenges 102
Siripuram Haripriya, Madhu, DM, J.Anusha and Kota Karuna Sri
7. Food Security and Poverty Alleviation 114
Prashanth J and B Nandita
8. Agribusiness, Entrepreneurship and Innovation 131
Amrit Banerjee, Kiran Sourav Das, Bhagyalaxmi Satapathy and
Bhagya Laxmi Sahu
9. Digital Agriculture: Data Analytics and Decision Support 155
Systems
Gurrala Priyanka, Nazreenbanu Tahasildar, Menta Anusha and
Aleti Varsha Reddy

v
10. Climate Change Adaptation and Mitigation in Agriculture 166
Sugam Sharma, Shaurya Sharma and Dr. S.P. Singh
11. Agricultural Extension Services and Knowledge Transfer 180
Saikiran Chintakindi, Shaik Muneer and Pavankumar Kemekar
12. Gender And Social Equity in Agribusiness 197
Yashwant Singh, Neha Thakur, Anshumant Sharma, and Harshit
Doda
13. Technological Disruptions in Agribusiness: Opportunities 217
and Challenges
Gurram Jayanth Reddy and Pavan Kumar K
14. Historical Perspectives on Agricultural Economics 249
Arpitha P, Ajayakumar and B Nandita
15. Agri Business Management: Principles and Practices 266
Pratishtha and Sarika Bishnoi
16. Market Structure and Performance in Agribusiness 281
Mukesh Kumar, Atul Dhingra and Aarzoo
17. Globalization and International Trade in Agribusiness 298
Chirag Gehlot, Prerna Pilania and Gourav Beniwal
18. Supply Chain Management in Agriculture 314
Sarika Bishnoi and Pratishtha
19. Environmental Sustainability in Agribusiness 329
Sree Lakshmi A.
20. Consumer Behaviour and Preferences in Agriculture 346
Market
B. Nandita, Arpitha P and Ajayakumar
21. Agricultural Cooperatives: Structure and Function 363
Ajayakumar, B Nandita, Arpitha P and Dr. Sagar

vi
22. Financial Management in Agribusiness 394
Dr. M. G. Lagare, Mr. D. N. Shelar and Mr. O. V. Bendre
23. Risk Management Strategies for Agricultural Enterprises 413
Prashanth J, Gangadhara Doggalli, Arun Shivayogi Honyal and
Narayan Murigeppa Gunadal

vii
 CHAPTER: 3
AGRICULTURE POLICY ANALYSIS
AND REFORMS
Komal Sharma1, Nandita Sharma1, Kumari Ankita2, Taruna Devi2,
Aanchal Sharma3 and Aman Sharma4
1
Assistant Professor, Department of Agricultural Economics, School of
Agriculture, Abhilashi University, Mandi, Teh Chachyot, Himachal
Pradesh, 175028
2
M.Sc. Student, Department of Extension Education, School of
Agriculture, Abhilashi University, Mandi, Teh Chachyot, Himachal
Pradesh, 175028
3
Assistant Professor, Dr. Abdul Kalam Computer Centre, Panjab
University, Chandigarh, 160014
4
Assistant Professor, Department of Management, Sardar Patel University,
Mandi, Himachal Pradesh, 175001

Abstract
Agricultural policy analysis and reforms entail evaluating existing
policies' effectiveness and implementing changes to address emerging
challenges. These reforms aim to enhance food security, support farmer
livelihoods, promote sustainable agriculture, and ensure market stability.
Key components include stakeholder consultation, market analysis, cost-
benefit analysis, and impact assessment. Recent trends emphasize
inclusivity, environmental sustainability, and resilience in the face of
global challenges such as climate change and pandemics. Reforms often
involve a balance between market liberalization and government
intervention to achieve optimal outcomes for farmers, consumers, and the
broader economy.

Keywords: Sustainable Agriculture, Price Policy, Livelihood,

Government Intervention

8
Introduction
Agricultural policy can be defined as an action plan to guide
decisions for achieving pre-determined goals related to agricultural
development. It is a term collectively used for a bundle of policies related
to agriculture such as land policy, price policy, trade policy, credit policy,
food policy etc. It reflects the national approach to agricultural
development and a set of activities to implement it. Agricultural
policy describes a set of laws relating to domestic agriculture and imports
of foreign agricultural products. Governments usually implement
agricultural policies with the goal of achieving a specific outcome in the
domestic agricultural product markets.
Agricultural policies use predetermined goals, objectives and
pathways set by an individual or government for the purpose of achieving
a specified outcome, for the benefit of the individual, society and the
nations' economy at large. Agricultural policies take into consideration the
primary, secondary and tertiary processes in agricultural production.
Outcomes can involve, for example, a guaranteed supply level, price
stability, product quality, product selection, land use or employment.
Agriculture has large impacts on climate change, estimated to be
contributing 20–25% of global annual emissions as of 2010. Moreover,
agriculture is highly vulnerable to the negative impacts of climate change,
such as decreases in water access, geophysical processes such as ocean
level rise and changing weather, and socioeconomic processes that affect
farmers, many of whom are in subsistence economic conditions. In order
for global climate change mitigation and adaptation to be effective a wide
range of policies need to be implemented to reduce the risk of negative
climate change impacts on agriculture and greenhouse gas emissions from
the agriculture sector

Instruments of agricultural policy

Policy instruments are those by which intended policy objectives
are achieved. Effectiveness of an instrument not only depends on the
flexibility of the instrument to adapt to changes but also on how it is used
in conjunction with other instruments. Policy instruments can be broadly
classified into three categories. First is related to public expenditure

9
comprising of investment in agriculture infrastructure, R&D and
subsidised inputs. Second consists of controls and regulations, primarily
on prices and trade. The third is direct management of production and
marketing through state-owned enterprises. In case of agriculture, a
number of policy instruments (e.g. price support, public procurement of
food grains, input subsidies and public investments in agricultural
infrastructure) are applied to pursue the policy objectives. These
instruments are complemented with trade policy instruments and
exchange rate adjustments to achieve export competiveness which is
dynamic in nature. For instance, till recently, quantitative restricts (QRs)
were used as an instrument to protect the domestic agriculture from cheap
imports. But in the post-WTO period, tariff is the key instrument in
managing agricultural imports. Following are some of the main policy
instruments used for promoting the agricultural sector in India.

Subsidies
Agricultural subsidies are of two types: investment subsidies and
input subsidies. Investment subsidies are provided to encourage private
investment in agriculture (e.g. investment in drip irrigation, rain water
harvesting, farm machines etc.). Input subsidies are provided through
subsidising fertilisers, irrigation, farm power, seeds and pesticides. In
addition, interest subsidy is also provided on institutional credit for
farmers to meet their short-term and long-term needs. Although food
subsidy does not directly benefit farmers it is given to the consumers), it
indirectly influences them by raising the demand for subsidised food-
grains.
Subsidies represent a cornerstone of agricultural price policy,
wielded by governments worldwide to influence agricultural markets,
bolster food security, and support farmers. These financial incentives take
various forms, including direct payments, input subsidies, and price
supports, all designed to stabilize agricultural incomes, incentivize
production, and ensure affordable food prices for consumers.
One primary function of agricultural subsidies is to shield farmers
from market volatility and price fluctuations. By providing financial
support or compensating for losses incurred due to factors beyond their

10
control, such as adverse weather conditions or fluctuating global market
prices, subsidies help maintain a stable income for farmers. This stability
is crucial for the viability of agricultural operations, as it encourages
investment in modern farming techniques, technology adoption, and
sustainable practices.

Price Support
Price of a product is one of the key determinants of its supply.
Therefore, price support works as an incentive to increase crop
production, productivity and farm income. The government fixes the
minimum support price (MSP) for an agricultural output to ensure
reasonable income to farmers. MSP serves as a safety net for farmers,
especially in times of market fluctuations or adverse weather conditions.
It provides them with assurance and confidence in cultivating crops,
knowing that they will receive a minimum price for their produce
irrespective of market conditions. This assurance encourages farmers to
invest in agricultural inputs, adopt modern farming techniques, and
increase productivity.
MSP plays a crucial role in ensuring food security by
incentivizing the production of essential crops such as rice, wheat, and
pulses. By guaranteeing a minimum price for these crops, the government
aims to maintain sufficient buffer stocks to meet the country's food
requirements and mitigate the risk of shortages. If market price of the
price-supported crop is below the MSP, the responsibility to procure the
produce from farmers (by compensating for the difference between MSP
and market price of the crop produce) rests with the government. If the
policy objective is to enhance farmers’ income, ratio of output prices to
input prices must be greater than one. Profitability in agriculture would
increase only when the index of output prices grows faster than the index
of input prices.

Direct Payments
Direct payments are used as an instrument to maintain the
agricultural output within a pre-defined output quota. Some developed
countries like EU and USA use this policy instrument. They are given for

11
enabling the performance of the multi-functionality role of agriculture
(e.g. conservation of land and water resources, protection of natural
environment and biodiversity, provision of safe and high-quality food,
preservation of rural landscapes and heritage and socio-economic and
cultural development of rural areas). All these being public goods, market
cannot provide them. Therefore, direct payments are given to farmers for
performing this role. Unlike price support, this instrument is considered
less trade distortive as it is not a link to the output price of any crop.
India can use this instrument to promote organic and sustainable
agricultural practices. Since organic farming has positive environmental
externalities, farmers practicing organic farming may be provided direct
payments on a per hectare basis as a ‘green bonus’. The concept of ‘Direct
Payments’ is different from the concept of ‘Direct Benefit Transfer’
(DBT). DBT is a system through which government transfers subsidy
directly to the bank account of the intended beneficiary so that its
misdirection and leakage is curtailed. For instance, a subsidy given on
purchase of laser land leveller may be transferred to the account of
beneficiary farmer after he purchases it from the market. Contrary to this,
direct payment is the monetary support to the farmers for achieving the
specific objective. For instance, if government wants that small and
marginal farmer households should get the minimum income protection,
then direct payment can be given to those households whose annual
income falls below the minimum level. Such payment improves the
economic welfare of intended beneficiaries but does not directly affect
farm production and prices.

Institutional Credit
Farmers’ credit needs are met by institutional and non-
institutional sources. The non-institutional sources are money lenders,
input dealers, traders, relatives, etc. Institutional sources are commercial
banks, cooperative banks, regional rural banks and cooperative credit
societies. Institutional credit is classified into short, medium and long
terms on the basis of time-period. Short-term credit is provided for
working capital (crop loan) for purchasing seeds, manure, fertiliser and
pesticides or for meeting labour charges. They are normally for a period

12
of less than one year. Medium-term loans (given for a period of 1-5 years)
are for investment in land development, purchase of livestock, farm
machinery and generation of other productive assets. Long term loan (over
5 year period) are given for fixed capital formation such as purchase of
tractors, installation of tube-wells, etc. Provision of cheap and timely
credit (with low transaction costs) helps the farmers in applying new farm
technologies and practices, diversify farm activities and improve farm
income. A major policy issue is how to provide easy and affordable bank
credit to tenant farmers, group farmers and small and marginal farmers.
Banks are generally disinterested in credit disbursement to these segments
due to high transaction and operation costs.

Crop Insurance
Indian agriculture suffers from three types of failures: market
failure, technology failure and weather failure. To protect them from these
failures, an effective policy instrument is ‘crop insurance’. Besides
helping in stabilisation of crop production and farm income, it encourages
farmers to invest in new farm technologies and adopt risky but more
remunerative cropping system. Besides protecting farmers from
unforeseen setbacks, it helps in maintaining income stability and
minimises the risk of non-payment of outstanding debt. Agriculture is the
single most affected sector by droughts, floods and other natural shocks.
There should therefore be a group insurance system so that transaction
costs are brought down. Further, an inbuilt mechanism of insurance
against the technology failure (such as costly hybrid seeds developed by
the private companies) needs to be introduced so that farmers investing in
such technologies may be protected against any unforeseen losses.

Public Investment in Infrastructure Services

State investment in irrigation, land improvement, soil and water
conservation, roads, electricity, water and pasture land improvement are
the major elements of infrastructure services. In addition, general services
provided to producers (either free or at subsidised costs) include research,
training and extension services, inspection services, and pest and disease
control services. All these services help to boost agricultural economy.

13
Exchange Rate and Trade Interventions
Exchange rate management and trade interventions are used as
policy instrument for protecting the interest of both farmers and
consumers. Generally, depreciation of domestic currency (vis-à-vis other
foreign currencies) would have positive impact on agriculture as it makes
agricultural export cheaper (and import costlier) thereby improving the
export competitiveness. However, its effectiveness depends on the
elasticity of exports (and imports) to change in value of domestic currency
relative to foreign currencies. Trade intervention comprises quotas, import
duties and export subsidies. These are used to increase (or decrease)
quantity of traded commodities and thus increase/decrease domestic
prices. Due to WTO regulations, quantitative restricts (quota) on
agriculture trade in India had to be lifted. With this, tariff (import duty)
became the main instrument to regulate agricultural trade. Tariffs for
various agricultural commodities are changed from time to time in
response to domestic supply and price situation. It is therefore considered
a price support and stabilisation instrument. Tariffs are levied on
agriculture imports to keep the price of imported products higher than the
prevailing MSP of that product. Exports are curtailed or banned if there is
an estimated shortfall in domestic production in order to reduce upward
pressure on prices. However, the instrument of tariff used in this manner
protects the consumers’ interest rather than the farmers. A stable and pro-
farmer trade policy that ensures a strong linkage between domestic and
international markets and takes a holistic view (on food security, farm
income, livelihood, and agricultural sustainability) is therefore needed.

Warehouse Receipts
Government of India has set up the Warehousing Development
and Regulatory Authority (WDRA) to develop and regulate warehousing,
including registration and accreditation of warehousing for issuing
Negotiable Warehouse Receipt (NWR). A number of agricultural
commodities, including horticulture commodities have been notified for
the purpose of NWR. This instrument helps the farmers in stopping
‘distress sales’ of their produce. A farmer can deposit his produce in a

14
WDRA accredited warehouse, which issues him a NWR, which can then
be used as collateral for taking loan from a bank.

De Minimis
WTO classifies domestic support to agriculture into two
categories– trade distorting and non-trade distorting. For trade distorting
support, it sets the limit beyond which the support is not permissible. The
de minimus refers to the trade distorting domestic support (subsidies) that
can be given by a member country to its agriculture. It is a significant
policy instrument used for promoting agriculture. It comprises the non-
product specific subsidies such as given on fertilisers, electricity,
irrigation, seeds, credit, etc. In developed countries, de minimus support
is allowed up to 5 per cent of agricultural GDP while for a developing
country like India, it is permitted up to 10 per cent of agricultural GDP.
These subsides must be paid out of the government budget.

Framework for Agricultural Policy Analysis

The framework for agricultural price policy analysis typically
involves several key components:
1. Policy Objectives: Identify the overarching goals of the
agricultural price policy, which may include ensuring food
security, supporting farmers' incomes, promoting sustainable
agriculture, and mitigating market volatility.
2. Market Analysis: Assess the current state of agricultural
markets, including supply and demand dynamics, price trends,
production costs, market structure, and trade patterns.
Understanding market fundamentals is crucial for formulating
effective price policies.
3. Stakeholder Consultation: Engage with various stakeholders,
including farmers, agricultural industry representatives,
consumers, and policymakers, to gather insights into their needs,
preferences, and concerns regarding agricultural prices and
policies.
4. Policy Instruments: Evaluate the range of policy instruments
available, such as price supports, subsidies, direct payments,

15
 minimum support prices (MSPs), de minimis provisions, and
market interventions. Assess the strengths, weaknesses, and trade-
offs associated with each instrument in achieving policy
objectives.
5. Cost-Benefit Analysis: Conduct a cost-benefit analysis of
potential policy interventions to determine their economic impact
on farmers, consumers, taxpayers, and the broader economy.
Consider factors such as efficiency, equity, fiscal sustainability,
and distributional effects.
6. Risk Management: Assess the risks and uncertainties facing
agricultural producers, including weather-related risks, market
volatility, input price fluctuations, and policy uncertainties.
Explore risk management tools and mechanisms, such as crop
insurance, futures markets, and income stabilization programs.
7. Impact Assessment: Estimate the potential impact of proposed
price policies on agricultural production, incomes, food prices,
trade flows, rural development, environmental sustainability, and
social welfare. Use empirical data, economic models, and
scenario analysis to forecast outcomes under different policy
scenarios.
8. Policy Implementation and Monitoring: Develop a plan for
implementing and monitoring the chosen price policies, including
mechanisms for setting price levels, administering support
programs, monitoring market conditions, and adjusting policies
as needed based on evolving circumstances.
9. Evaluation and Feedback: Establish mechanisms for evaluating
the effectiveness and efficiency of agricultural price policies over
time, including regular reviews, performance indicators, and
feedback mechanisms from stakeholders. Use evaluation findings
to inform future policy decisions and adjustments.

Effectiveness of Price Policies

The effectiveness of a price policy in agriculture can be evaluated
based on several key factors:

16
1. Achievement of Objectives: The primary measure of
effectiveness is the extent to which the price policy achieves its
intended objectives. For example, if the goal is to support farmer
incomes, effectiveness can be assessed by analyzing changes in
farmers' incomes over time compared to the baseline.
2. Market Stability: Price policies should contribute to market
stability by mitigating extreme fluctuations in prices.
Effectiveness can be measured by examining the degree of price
volatility before and after the implementation of the policy.
3. Consumer Welfare: Price policies may affect consumer welfare
by influencing food prices. Effectiveness can be assessed by
analyzing the impact of price policies on consumer prices and
access to food, particularly for vulnerable populations.
4. Farmers' Welfare: The welfare of farmers is a crucial indicator
of effectiveness. This includes factors such as changes in farm
incomes, profitability, debt levels, and overall well-being.
Monitoring these indicators can help gauge the impact of price
policies on farmers.
5. Market Distortions: Price policies should minimize distortions
in agricultural markets, such as overproduction or inefficiencies.
Effectiveness can be evaluated by assessing the extent to which
the policy contributes to market distortions or unintended
consequences.
6. Environmental Impact: Agricultural price policies may have
environmental implications, such as influencing land use patterns
or resource utilization. Effectiveness can be measured by
evaluating the environmental sustainability of agricultural
production under the policy regime.
7. Trade Implications: Price policies may affect international trade
by influencing competitiveness and market access. Effectiveness
can be assessed by analyzing the impact of price policies on trade
flows, export competitiveness, and compliance with international
trade rules.
8. Cost-Benefit Analysis: Conducting a comprehensive cost-benefit
analysis can help determine the overall effectiveness of a price

17
 policy. This involves comparing the costs of implementing the
policy with the benefits accrued to various stakeholders, including
farmers, consumers, and the broader economy.
9. Feedback and Adaptation: Effectiveness should be
continuously monitored and evaluated over time, with feedback
from stakeholders informing adjustments to the price policy as
needed to improve its performance and alignment with objectives.

Agricultural Reforms in India: Latest Reforms and Their

Impact on Agriculture
The Indian government has introduced a number of agricultural
reforms in recent years, with the aim of making the agricultural sector
more competitive and efficient. These reforms are expected to have a
positive impact on agriculture in India, by increasing production, reducing
prices, and improving the lives of farmers. Some of the latest reforms
include the Farmers' Produce Trade and Commerce (Promotion and
Facilitation) Act, 2020, the Essential Commodities Act, 2020, and the
Electricity (Amendment) Act, 2020. These reforms are expected to have a
positive impact on agriculture in India, by increasing production, reducing
prices, and improving the lives of farmers.

Concept of agricultural reforms in India

Agricultural reforms in India are changes made to the agricultural
sector of the Indian economy. These reforms have been implemented over
the years in an attempt to improve productivity, efficiency, and market
access. They have also been aimed at addressing social and environmental
concerns.
Some of the main agricultural reforms that have been
implemented in India include:
• Land reforms: These reforms aim to change the way land is
owned and used in India. They have included redistributing land
from large landowners to small farmers, and they have also
included changing the rules about who can own land.
• Market reforms: These reforms aim to make agricultural
markets in India more efficient. They have included removing

18
 price controls, and they have also included opening up
agricultural markets to foreign competition.
• Technological reforms: These reforms aim to introduce new
technologies to the agricultural sector in India. They have
included the development of new seeds, fertilizers, or pesticides,
and they have also included the adoption of new farming
practices.
• Institutional reforms: These reforms aim to improve the way
that agricultural policies are made and implemented in India.
They have included strengthening the role of agricultural research
and extension services, and they have also included improving the
governance of agricultural markets.
The success of agricultural reforms in India has been mixed. Some
reforms have been successful in improving productivity, efficiency, and
market access. However, other reforms have been less successful, and
some have even had negative consequences.

History of agricultural reforms in India

The story of agriculture in India is also one of struggle, resilience,
and transformation. Through various reforms, the country has strived to
enhance the agricultural sector, facing both triumphs and challenges.

Agricultural reforms in India before independence

During British colonial rule, agriculture was primarily geared
towards serving the economic interests of the British Empire. Policies
were implemented to maximize revenue through agriculture, leading to
exploitative practices and widespread rural poverty. The land was taxed
heavily, and many farmers were left landless.

Agricultural reforms in India after independence

India has implemented a number of agricultural reforms since
independence in 1947. The first wave of reforms, in the 1950s and 1960s,
focused on increasing agricultural productivity and self-sufficiency. This
included the introduction of the Green Revolution, which brought new

19
technologies, such as high-yielding varieties of seeds and fertilizers, to
India.

The Green Revolution (1960s and 1970s)

The post-independence era marked the beginning of significant
agricultural reforms. The green revolution, initiated in the late 1960s,
aimed at increasing agricultural productivity through the introduction of
high-yield crop varieties, modern farming techniques, and irrigation
facilities. It succeeded in transforming India's food-deficient status into a
self-sufficient nation. However, it also led to environmental concerns and
regional disparities.

Land Reforms
The early years after independence saw the government's efforts
to redistribute land through land ceiling laws, aimed at breaking down the
feudal land ownership system. Though noble in intent, the implementation
was patchy, and the impact was varied across different states.

Market Reforms (1990s)

The liberalization of the Indian economy in the 1990s led to
significant changes in agricultural policies. Export barriers were removed,
and farmers were encouraged to grow cash crops. While this opened up
new opportunities, it also exposed small farmers to global price volatility.

Technological Advancements
Advancements in technology brought about new avenues in
agriculture. The introduction of genetically modified crops, modern
machinery, and digital platforms for information dissemination are
examples of technological reforms that continue to shape Indian
agriculture.

Recent Reforms (2020-2023)

The recent agricultural reforms introduced in 2020 aimed at
deregulating the agricultural market, allowing farmers more freedom to
sell their produce outside government-regulated markets. These laws

20
sparked widespread protests and debates, reflecting the complex and
multifaceted nature of agricultural reform in India.

Most Recent Agricultural sector reforms in India

E-NAM (Electronic National Agriculture Market)
E-NAM (Electronic National Agriculture Market) is a pan-India
electronic trading platform for agricultural commodities. It was launched
by the Government of India in 2016 and is operated by the National
Agricultural Cooperative Marketing Federation of India (NAFED). E-
NAM provides a single platform for farmers to sell their produce to buyers
from all over the country. This helps farmers to get a better price for their
produce and also helps to reduce the risk of price fluctuations. E-NAM
also provides farmers with access to a wider range of buyers, which can
help them to increase their sales.

Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) is a central
sector scheme launched in 2015 with a vision to provide secure and timely
irrigation to 100 million hectares of agricultural land by 2024. The scheme
aims to achieve this through a combination of measures, including:
• Construction of new canals and dams
• Renovation and modernization of existing canals and dams
• Promotion of micro-irrigation
• Groundwater recharge
• Capacity building of farmers
The PMKSY has been a major success, with over 30 million hectares of
land being irrigated under the scheme as of March 2023. The scheme has
also helped to improve the productivity of crops, increase farmers'
incomes, and reduce the risk of crop failure.
The PMKSY is a major step forward in the government's efforts
to transform the agriculture sector and make it more sustainable and
resilient. The scheme is expected to play a major role in ensuring food
security for India in the years to come.
Key benefits of the PMKSY:
• Increased crop productivity

21
 • Increased farmers' incomes
• Reduced risk of crop failure
• Improved water conservation
• Improved environmental sustainability
• Enhanced rural livelihoods
The PMKSY is a comprehensive and ambitious scheme that is making a
real difference to the lives of millions of farmers in India. The scheme is
expected to play a major role in transforming the agriculture sector and
making it more sustainable and resilient in the years to come.

Paramparagat Krishi Vikas Yojana (PKVY)

The Paramparagat Krishi Vikas Yojana (PKVY) is a central
sector scheme launched in 2007 with a vision to promote traditional
agriculture and enhance farmers' income. The scheme provides farmers
with training, inputs, and assured purchase guarantee for traditional
agriculture.
Under the PKVY, the government provides farmers with training on:
• Traditional agricultural methods and practices
• Use of inputs for traditional agriculture
• Information about institutions that provide training in traditional
agriculture
The government also provides farmers with inputs for traditional
agriculture, such as:
• Seeds
• Fertilizers
• Pesticides
The government also provides farmers with an assured purchase guarantee
for their produce, which means that the government will buy their produce
at a pre-agreed price.
The PKVY is a significant scheme that is promoting the
development of traditional agriculture and enhancing farmers' income.
The scheme is expected to play a major role in making Indian agriculture
more sustainable and resilient in the years to come.
Key benefits of the PKVY:
• Increased income for farmers

22
 • Increased productivity of crops
• Improved environmental sustainability
• Enhanced rural livelihoods
The PKVY is a comprehensive and ambitious scheme that is making a real
difference to the lives of millions of farmers in India. The scheme is
expected to play a major role in transforming the agriculture sector and
making it more sustainable and resilient in the years to come.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance
scheme launched by the Government of India in 2016. The scheme
provides insurance coverage to farmers against crop losses due to natural
disasters, such as drought, flood, hailstorm, and pest infestation.
The scheme is mandatory for all farmers who cultivate notified
crops in notified areas. The premium for the scheme is shared between the
government and the farmers. The government bears 50 % of the premium
for small and marginal farmers and 25 % of the premium for other farmers.
Under the scheme, farmers are insured against crop losses up to 100 % of
the insured value. The insured value is the market value of the crop at the
time of harvest.
Key features of the PMFBY:
• The scheme is mandatory for all farmers who cultivate notified
crops in notified areas.
• The premium for the scheme is shared between the government
and the farmers.
• Farmers are insured against crop losses up to 100% of the insured
value.
• Farmers need to report crop losses to the insurance company
within 30 days of the loss.
• The insurance company will then assess the loss and pay the
farmer the insured amount.
The PMFBY is a significant step forward in the government's efforts to
provide financial security to farmers. The scheme is expected to play a
major role in reducing the risk of crop losses and improving the income
of farmers.

23
PM-KISAN (Kisan Samman Nidhi) Yojana
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme
is a government of India scheme that provides financial assistance of
₹6,000 per year to eligible small and marginal farmers, in three equal
instalments of Rs. 2,000 each. The scheme was launched on February 24,
2019, and is expected to benefit about 125 million farmers.
To be eligible for the scheme, a farmer must:
• Be an Indian citizen.
• Own cultivable land.
• The land holding should not exceed 2 hectares.
• The annual income of the farmer's family should not exceed ₹2
lakh.

The benefits of the PM-KISAN scheme are:

• It will help to increase the income of farmers.
• It will help farmers to grow and sell their crops.
• It will help farmers to become self-reliant.
• It will help to reduce poverty among farmers.
The PM-KISAN scheme is a significant welfare scheme that will
help to improve the lives of farmers by providing them with financial
assistance.

PM-KISAN Maan Dhan Yojana

The Pradhan Mantri Kisan Maan Dhan Yojana (PM-Kisan-MKY)
is a pension scheme for farmers in India. It was launched by Prime
Minister of India on 15 August 2019. The scheme is aimed at providing a
monthly pension of Rs.3,000 to farmers who are at least 18 years old and
have less than 2 hectares of land. To be eligible for the scheme, farmers
must have a Jan Dhan account and aadhaar card.
The scheme is funded by the central government and the state
governments. The central government will contribute Rs. 2,000 per month
to the pension fund, while the state governments will contribute Rs.1,000
per month. The pension will be paid to farmers on a monthly basis.
Benefits of the PM-Kisan-MKY scheme:
• It will provide a monthly pension to farmers.

24
 • It will help to improve the lives of farmers and their families.
• It will reduce poverty among farmers.
• It will encourage farmers to stay on their land.
• It will help to increase agricultural production.
The PM-Kisan-MKY scheme is a significant step by the government to
improve the lives of farmers. It is a well-designed scheme that will have a
positive impact on the agricultural sector.

Challenges of agricultural reforms in India

The challenges of agricultural reforms in India include:
• Political will: Agricultural reforms often require a strong political
will to implement them. This is because they can be controversial
and can displace farmers or harm the environment.
• Capacity of the agricultural sector: Agricultural reforms also
require the capacity of the agricultural sector to adapt to change.
This means that farmers need to be able to adopt new technologies
and practices, and that the agricultural sector needs to be able to
manage the risks associated with change.
• External factors: Agricultural reforms can also be affected by
external factors such as weather conditions, crop diseases, and
fluctuations in market prices.

Impact of agricultural reforms on the Indian agriculture

The Indian government has implemented a number of agricultural
reforms in recent years. These reforms are aimed at making the
agricultural sector more competitive and efficient. Some of the key
reforms include:
• The Farmers' Produce Trade and Commerce (Promotion and
Facilitation) Act, 2020: This Act allows farmers to sell their
produce to anyone they want, without having to go through the
government-controlled APMCs (Agricultural Produce Market
Committees). This will give farmers more freedom and choice in
selling their produce.
• The Essential Commodities Act, 2020: This Act has been
amended to deregulate most of the commodities that were earlier

25
 under its purview. This will reduce the government's control over
the agricultural sector and promote competition.
• The Electricity (Amendment) Act, 2020: This Act allows
farmers to generate and sell their own electricity. This will help
farmers to save money on their electricity bills and become more
self-sufficient.
The impact of these reforms on Indian agriculture is still being debated.
Some experts believe that the reforms will lead to higher prices for
consumers and will benefit big businesses at the expense of small farmers.
Others believe that the reforms will lead to lower prices for consumers
and will benefit all farmers.

Conclusion
Agricultural policy and reforms in India have undergone
significant evolution to address the diverse challenges faced by the sector,
which remains a cornerstone of the country's economy. These reforms aim
to modernize agriculture, enhance productivity, and ensure food security
while supporting the livelihoods of millions of farmers. Key initiatives
include the adoption of advanced technologies, improved irrigation
systems, and the promotion of sustainable practices such as natural
farming. Additionally, policies have focused on strengthening market
infrastructure, ensuring fair prices for farmers, and providing financial
support and insurance schemes to mitigate risks. While these reforms have
brought about positive changes, continuous efforts are needed to address
issues like land fragmentation, climate change, and market volatility. By
fostering innovation, sustainability, and inclusivity, India's agricultural
policy and reforms can pave the way for a resilient and prosperous
agricultural sector, driving overall economic growth and development.

References
1. Anonymous. 2023. Agricultural reforms in India: latest reforms
and their impact on agriculture. (Website:
https://testbook.com/static-gk/agricultural-reforms-in-india)

26
2. Arora V.P.S 2013). Agricultural policies in India: retrospect and
prospect, Agricultural Economics Research Review 26:2
3. Government of India. 2007. National policy for farmers, Ministry
of Agriculture & Cooperation, New Delhi
4. Norton R. D. 2004. Agricultural development policy: concepts
and experiences, John Wiley & Sons, Ltd., England

27