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Questions and Answers
How many FPOs had registered under the new FPO scheme as of 29 February 2024?
What percentage of farmers from the surveyed states found the quality testing procedures of e-NAM transparent?
What was the total amount of equity grants released to FPOs?
Which of the following states had the highest percentage of farmers observing better pricing through e-NAM?
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What implementation challenges of e-NAM are identified?
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Which mechanism does the forward market for agricultural commodities help establish?
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What is one of the main benefits farmers reported from using the e-NAM facilities?
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What percentage of farmers prefer transactions through the e-NAM portal over traditional markets?
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What is one potential benefit of the remaining subsidy being used for agricultural inputs?
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Which aspect is crucial for ensuring the efficiency of the new subsidy mechanism?
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How can unused subsidies at the end of the year be utilized?
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What key information must the farmer’s registry include for the new subsidy system?
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What is suggested as a prudent strategy during the paradigm shift in fertilizer administration?
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What is the main purpose of integrating a crop sown registry into the new subsidy system?
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What potential problem does the new subsidy system aim to address?
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What is one aspect that could lead to successful implementation of the subsidy reform in agriculture?
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What is the purpose of a comprehensive marketing network for farmers?
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What is the average area served by mandis in the country, and how does it compare to the recommended area?
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What challenge do small and marginal farmers face concerning mandis?
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What initiative does the e-NAM Scheme offer to Agricultural Price Marketing Committee (APMC) mandis?
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How many farmers and traders have been registered on the e-NAM portal as of March 2024?
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What is the government’s goal regarding Farmer Producer Organizations (FPOs)?
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What role do intermediaries play in agricultural marketing for farmers?
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What is a key benefit of improved market accessibility for farmers?
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Study Notes
FPO Registration and Financial Aid
- As of 29 February 2024, 8,195 Farmer Producer Organizations (FPOs) registered under the new FPO scheme.
- Equity grants totaling ₹157.4 crore were distributed to 3,325 FPOs.
- Credit guarantee cover of ₹278.2 crore issued to 1,185 FPOs.
e-NAM Impact on Farmers
- e-NAM initiative positively impacts farmers by enabling higher price realizations for crops.
- Post-implementation, participating farmers reported higher crop prices.
- 66% of surveyed farmers found quality testing procedures transparent.
- High percentages of farmer satisfaction: 82% (Gujarat), 79% (Haryana), 64% (Maharashtra), and 89% (Telangana) noted better pricing and reduced transaction costs.
- 54% of farmers prefer transactions through e-NAM over traditional markets due to various benefits.
Implementation Challenges of e-NAM
- Significant challenges remain, including limited awareness, lack of trust, and inadequate infrastructure for assaying facilities.
Forward Market for Agricultural Commodities
- Established to address seasonal production and consistent consumption risks.
- Links future production and consumption, facilitating price stabilization.
Agricultural Marketing Network
- A diversified marketing network aids farmers by reducing post-harvest losses and improving competition and price discovery.
- Increased marketable surplus necessitates better marketing facilities for farmers.
- Reliance on intermediaries rises due to delays in accessing formal institutions, like APMC.
Market Accessibility Issues
- Average area served by mandis is 434.48 sq.km, contrasted with the National Commission on Farmers' recommendation of 5 km radius (around 80 sq.km).
- Physical transportation challenges particularly affect small and marginal farmers.
e-NAM Scheme Implementation
- Government provides free software and ₹75 lakh per APMC mandi for hardware related to quality assessments and infrastructure.
- More than 1.77 crore farmers and 2.56 lakh traders are registered on the e-NAM portal as of 14 March 2024.
- The initiative aims to establish and promote 10,000 FPOs by 2027-28, with a budget of ₹6,860 crore.
Subsidy Distribution Streamlining
- Remaining subsidies can be used for agricultural inputs like seeds and pesticides.
- Unused subsidies may convert into savings instruments at post offices to prevent misuse.
Recommendations for Fertiliser Administration Reforms
- Need for integration of Point of Sale (PoS) devices with a farmer registry including Aadhaar and land ownership details.
- Proposals for updating details related to family members and authorized persons for subsidy purchases.
- Future integration of a digital crop survey-based crop sown registry recommended.
Pilot Program Suggestions
- Suggested to pilot fertilizer administration reforms in districts with robust agri-stack systems to ensure a successful paradigm shift in fertilizer usage.
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