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Questions and Answers

How many FPOs had registered under the new FPO scheme as of 29 February 2024?

  • 1,185
  • 5,432
  • 8,195 (correct)
  • 3,325
  • What percentage of farmers from the surveyed states found the quality testing procedures of e-NAM transparent?

  • 66% (correct)
  • 82%
  • 54%
  • 79%
  • What was the total amount of equity grants released to FPOs?

  • ₹3,325 Crore
  • ₹157.4 Crore (correct)
  • ₹278.2 Crore
  • ₹1,185 Crore
  • Which of the following states had the highest percentage of farmers observing better pricing through e-NAM?

    <p>Telangana</p> Signup and view all the answers

    What implementation challenges of e-NAM are identified?

    <p>Limited awareness, lack of trust, and infrastructure issues</p> Signup and view all the answers

    Which mechanism does the forward market for agricultural commodities help establish?

    <p>A link between present and future production and consumption cycles</p> Signup and view all the answers

    What is one of the main benefits farmers reported from using the e-NAM facilities?

    <p>Improved price realizations for crops</p> Signup and view all the answers

    What percentage of farmers prefer transactions through the e-NAM portal over traditional markets?

    <p>54%</p> Signup and view all the answers

    What is one potential benefit of the remaining subsidy being used for agricultural inputs?

    <p>It may encourage balanced use of fertilizers based on crop and soil needs.</p> Signup and view all the answers

    Which aspect is crucial for ensuring the efficiency of the new subsidy mechanism?

    <p>Integration of PoS devices with the farmer’s registry in Agri Stack.</p> Signup and view all the answers

    How can unused subsidies at the end of the year be utilized?

    <p>They can be converted into a small savings instrument at a post office.</p> Signup and view all the answers

    What key information must the farmer’s registry include for the new subsidy system?

    <p>Farmer's Aadhaar number and agricultural land details.</p> Signup and view all the answers

    What is suggested as a prudent strategy during the paradigm shift in fertilizer administration?

    <p>Carrying out pilots in selected districts with developed agri-stack systems.</p> Signup and view all the answers

    What is the main purpose of integrating a crop sown registry into the new subsidy system?

    <p>To provide digital records that support subsidy allocation based on accurate crop data.</p> Signup and view all the answers

    What potential problem does the new subsidy system aim to address?

    <p>Misuse of subsidies for non-agricultural purposes.</p> Signup and view all the answers

    What is one aspect that could lead to successful implementation of the subsidy reform in agriculture?

    <p>Continuous training and support for farmers on new systems.</p> Signup and view all the answers

    What is the purpose of a comprehensive marketing network for farmers?

    <p>To provide effective price discovery</p> Signup and view all the answers

    What is the average area served by mandis in the country, and how does it compare to the recommended area?

    <p>434.48 sq.km, more than the recommended 80 sq.km</p> Signup and view all the answers

    What challenge do small and marginal farmers face concerning mandis?

    <p>They often need to travel long distances to reach mandis</p> Signup and view all the answers

    What initiative does the e-NAM Scheme offer to Agricultural Price Marketing Committee (APMC) mandis?

    <p>Financial assistance for modernized infrastructure</p> Signup and view all the answers

    How many farmers and traders have been registered on the e-NAM portal as of March 2024?

    <p>1.77 Crore farmers and 2.56 Lakh traders</p> Signup and view all the answers

    What is the government’s goal regarding Farmer Producer Organizations (FPOs)?

    <p>To establish 10,000 FPOs by 2027-28</p> Signup and view all the answers

    What role do intermediaries play in agricultural marketing for farmers?

    <p>They can create reliance due to delays in accessing formal institutions</p> Signup and view all the answers

    What is a key benefit of improved market accessibility for farmers?

    <p>Better pricing and less reliance on middlemen</p> Signup and view all the answers

    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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