Agriculture

Cabinet approves Global Potato Research Center in Agra

Context: The Union Cabinet approved a proposal to set up a regional wing of the Peru-based International Potato Center (CIP) in Agra district, Uttar Pradesh.

Relevance of the Topic: Prelims: About International Potato Center, CIP-South Asia Regional Centre (CSARC), India’s position in global potato production.

About International Potato Center (CIP)

CIP-South Asia Regional Centre:

The proposed CIP-South Asia Regional Centre (CSARC) will be set up at Singna in Agra district, Uttar Pradesh.
Purpose: To strengthen India’s research and productivity in potatoes and sweet potatoes.
The project costs Rs 171 crore, with India contributing Rs 111.5 crore and the remaining Rs 60 crore funded by the CIP. The UP government has provided 10 hectares of land for it.
It will cater not only to farmers in India’s potato belt states, like Uttar Pradesh, Bihar and West Bengal, but also to South Asian countries.

Objective of CSARC:

To increase food and nutrition security, farmers income, and job creation by improving potato and sweet potato productivity, post-harvest management and value-addition.

Functions of CSARC:

To develop climate-resilient, disease-free, and processing-suitable potato & sweet potato varieties.
It will bring global science expertise, an extensive global innovation network and global genetic resources.

Significance of CSARC:

Boost Productivity:
- Though India is the second largest potato producer in the world, followed by China, its average yield is 25 tonnes per hectare, about half of its potential of over 50 tonnes per hectare.
- India’s sweet potato yield is just 11.5 tonnes per hectare, which is much less than the potential of 30 tonnes per hectare.
- A major reason for these low numbers is a lack of availability of high-quality seeds. With the establishment of the CSARC, India will have access to the largest global collection of germplasm (the cells or tissues from which a new organism can be generated) available with the CIP.

Boost Domestic Seed Production: Establishment of this center will boost domestic potato seed production, thereby reducing India’s dependence on seed imports from neighbouring countries.
Increase in Export Potential: It will also help increase the potential for exporting the potato and sweet potato products from India to international markets.
Aid Food Processing: It will aid local food processing industries in increasing investments in processing and value addition.

The proposed CSARC will be the second major international agricultural research institution to set up operations in India. In 2017, the Agriculture Ministry supported the establishment of a regional centre of the Philippines-based International Rice Research Institute (IRRI). The IRRI-SARC is established in Varanasi.

Need to revisit Food and Fertiliser Subsidies

Context: With poverty levels now at historic lows, India needs to revisit food and fertiliser subsidies.

Relevance of the Topic: Prelims: Key facts of macroeconomic growth Mains: Food and Fertiliser subsidies - issues, solutions.

Over the past decade, India has achieved significant macroeconomic growth and a sharp decline in extreme poverty.

Nominal GDP increased from $2.04 trillion (2014) to $4.19 trillion (2025)
GDP (PPP) increased from $6.45 trillion to $17.65 trillion- 3rd largest globally.
Per Capita Income (PPP) increased from $4,935 to $12,131.
Inequality (Gini Index) - remained moderate (0.34 in 2014 to 0.33 in 2020)

With extreme poverty now at just 5.3%, there is a need to revisit inefficient subsidies- especially food and fertiliser subsidies. These subsidies claim the largest resources in the agri- food space and yet sub-optimal results.

Issues with Subsidies

High Fiscal Burden: The food subsidy budget for FY26 is set at Rs 2.03 lakh crore. India is giving free food (rice or wheat, 5kg/person/month) to more than 800 million people. The fertiliser subsidy budget for FY 2025-26 is set at ₹1.56 lakh crore.
Exclusionary: Fertiliser subsidies often benefit large farmers disproportionately, while small and marginal farmers struggle with access.
Distortionary: The PDS and MSP regime's wheat-rice focus distorts cropping patterns, leading to regional monoculture and neglect of pulses, oilseeds, and millets.
Promote Environmentally unsustainable practices: E.g., Unbalanced utilisation of fertilisers, over-consumption of water etc.
Leakages and Corruption: Food subsidies under PDS suffer from diversion, ghost beneficiaries, and low-quality delivery. Fertiliser subsidies go to manufacturers, not directly to farmers- creating scope for over-invoicing, black marketing, and cross-border smuggling (e.g., to Nepal and Bangladesh).
Does not address structural issues such as poor irrigation, low R & D, poor marketing infrastructure etc.

Way Forward

Food subsidy can be rationalised by giving beneficiaries food coupons (digital wallet) to buy nutritious food- pulses, milk, eggs from designated stores. This will help plug leakages, diversify diets, promote nutrition, and diversify the production basket.
Fertilizer subsidy can be rationalised by giving fertiliser coupons to farmers and deregulating the prices of fertiliser products.
Farmers can use these coupons to buy chemical fertilisers or bio-fertilisers or do natural farming. This will help fix the imbalance in the use of nitrogen (N), phosphorus (P), and potassium (K), reduce leakages, and encourage better products and farming methods.

There is a need to move from universal, input-based subsidies to targeted, output-oriented support that improves nutritional security, efficiency, and environmental sustainability.

Mains Practice Question

Q. With extreme poverty at historic lows, do you think it is time to rationalise food and fertiliser subsidies in India? Discuss the issues associated with the current subsidy regime and suggest reforms to make it more efficient, equitable, and sustainable.

From Farm to Shelf: Food Processing Sector

Context: Government-led reforms and schemes have transformed India’s food processing sector into a driver of inclusive growth, agricultural integration, and global engagement.

Relevance of the topic:

Prelims: Key government Initiatives for the Food Processing Sector.

Mains: Significance of the Food Processing Sector.

Food Processing Sector

Food processing is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful.
Once characterised by unorganised production and high post-harvest losses, the sector has now emerged as a key pillar of rural empowerment, entrepreneurship, and agri-industrial integration. Food Processing has emerged as a sunrise sector accounting for 11% of GVA in agriculture and 10% of GVA in manufacturing.

Significance of Food Processing Sector:

Promote agricultural diversification by increasing demand for raw material. E.g., Tribal women in Bastar transformed Mahua flowers into chocolates and herbal tea.
Reduce post harvest losses (about Rs 92000 Crore) through Cold chain infrastructure.
Boost agricultural exports E.g., Makhana of Bihar has turned into a global snack brand and now exports to the US and Canada.
Address nutritional insecurity through food fortification.
Promote inclusive growth through secondary agriculture and job creation.
Establish forward and backward linkages.

With following government initiatives, the food processing sector has emerged as one of the most potent instruments of inclusive growth, agricultural integration, and global engagement.

Pradhan Mantri Kisan SAMPADA Yojana:

Objective: Infrastructure creation, modernisation, and preservation of food products.
Key Outcomes:
- Created 250 lakh MT of annual processing and preservation capacity.
- Leveraged ₹22,000 crore private investment leveraged.
- 53 lakh farmers directly benefited and 7.6 lakh employment opportunities generated.

Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme:

Launched under: Atmanirbhar Bharat Abhiyan with an outlay of Rs 10,000 crore.
Objective: Empower unorganised micro food enterprises through formalisation, credit, and skilling.
Key Achievements:
- Over 1.41 lakh loans sanctioned, worth ₹11,205 crore
- 3.3 lakh SHG members supported it with seed capital.
- Over 1 lakh individuals trained in entrepreneurship & skills
- To foster innovation and support early stages enterprises, 75 incubation centres were approved.
- 17 regional brands launched, promoting local products.

Production Linked Incentive (PLI) Scheme for Food Processing Industries;

Objective: Catalyse large-scale investments, industrial capacity, and formal job creation
Achievement : With committed investment of ₹8,900 crore, the scheme has led to the creation of over 3.3 lakh new jobs and added more than 67 lakh MT processing capacity.

Budgetary Support for Infrastructure (Union Budget 2024-25)

Key Announcements:

50 multi-product irradiation units to improve shelf life and reduce losses.
100 NABL-accredited food testing laboratories for improved quality control.
Establishment of National Makhana Board to promote value addition, branding, and global recognition of Makhana.

Institutional Support and Innovation Ecosystem:

NIFTEM-Kundli and NIFTEM-Thanjavur, Institutes of National Importance, are training next-gen food technologists and entrepreneurs.
New NIFTEM is coming up in Bihar to utilise the eastern region’s potential.
India's food tech startup ecosystem is thriving with over 5,000 food-tech start-ups working on Plant-based foods, AI-enabled traceability, functional foods, sustainable packaging.

Global Branding and Investment Platform:

World Food India: An international platform by the Ministry of Food Processing Industries to promote investment, innovation, and global collaboration, showcasing India’s strength across the agri-food value chain.

The food processing sector in India is undergoing a major transformation- from farm to shelf. With strong government support, it is reducing post-harvest losses, creating jobs, boosting exports, and empowering rural communities.

Empowering Women in Agriculture

Context: The United Nations General Assembly has declared 2026 as the International Year of the Woman Farmer. The resolution celebrates the essential role of women in global agriculture while raising awareness of their challenges, which include property rights and market access.

Relevance of the Topic: Mains: Role of women in Agriculture and challenges faced by them.

Women in Agriculture

Women contribute 60-80% of food production in developing countries and form 39% of the agricultural labour force in South Asia.
In India, approximately 80% of all economically active women are employed in agriculture.
According to Periodic Labour Force Survey (PLFS) 2023‑24, 64.4 % of India's agricultural workforce are women.

These figures highlight the vital role of women in agriculture. Yet, their contribution remains undervalued due to systemic gender biases in land ownership, access to credit, and representation in policy making.

Key Challenges Faced by Women Farmers

Land Ownership Disparity: In India, the percentage of women who own agricultural land is significantly lower than that of men, despite women constituting a substantial part of the farm workforce. Only 14% of agricultural landholders in India are women; NFHS-5 puts this figure even lower at 8.3%.
Limited access to formal credit: Lack of land ownership makes it difficult to obtain credit and limits their access to financial institutions. While microfinance and self-help groups provide some access, such loans are often insufficient for significant investments. Less than 15% of female farmers access institutional credit (NABARD All India Rural Financial Inclusion Survey 2016-17). Consequently, they rely on informal sources, leading to exploitative debt cycles.
Invisibility in Agricultural Policy: Agricultural policies and schemes are often male-centric. As per MS Swaminathan, “The female face of farming is missing from policy frameworks.”
Double Burden and Time Poverty: Time Use Survey (2019) shows women spend 3-5 hours more daily on unpaid care work, reducing their capacity for skill-building or secondary livelihoods.
Limited access to technology: Regular access to information on agricultural planning and advisory is essential for farmers, but women have more limited access to technology, such as mobile phones.
Mechanisation Gap: Mechanised tools are predominantly designed for male farmers.
Climate Change disproportionately affects women farmers by increasing their domestic responsibilities and elevating their exposure to agricultural risks like crop failure.

These obstacles hinder investments, technology adoption and improvements in livelihoods.

Government Initiatives for Women in Agriculture:

The Government of India supports small women farmers to enhance skills and promote sustainable agriculture.

Mahila Kisan Sashaktikaran Pariyojana (MKSP): Upgrades skills and increases resource access for women.
Sub-Mission on Agricultural Mechanisation: Offers 50–80% subsidies on farm machinery for women.
National Food Security Mission (NFSM): 30% fund allocation for women in some states and UTs.
Self-Help Groups (SHGs) and DAY-NRLM: Promote group farming, micro-financing, and entrepreneurship.

Way Forward: Policy Recommendations

Gender-Sensitive Agricultural Policies: Policy design and implementation should take into account the unique needs of women farmers. E.g., Designing Women-Centric Farm Tools.
Granular data with a gender lens are needed to develop solutions tailored to women’s needs.
Focus on agri-value chains that support women farmers and are managed by women.
Enhance women’s access to financing mechanisms and information while supporting their collective action and networks, such as women’s self-help groups.
Secure Land Ownership through joint or individual land titles.

Women are the backbone of agriculture, yet they remain marginalised in land rights, credit access, and decision-making. As M.S. Swaminathan aptly said, "If agriculture is to be sustainable and equitable, the invisible face of the woman farmer must become visible.

Modified Interest Subvention Scheme

Context: The Cabinet Committee on Economic Affairs (CCEA) approved continuation of the Modified Interest Subvention Scheme (MISS) for 2025-26. The government will allow 7.7 crore farmers to get short-term credit at a subsidised rate of interest through the Kisan Credit Card.

Relevance of the Topic: Prelims: Modified Interest Subvention Scheme; Kisan Credit Card.

Modified Interest Subvention Scheme

MISS is a Central sector scheme, under which farmers get short-term loans of up to ₹3 lakh through Kisan Credit Card at a subsidised interest rate of 7%, as the government covers 1.5% interest subvention to eligible lending institutions.
Additionally, farmers repaying loans in time are eligible for an additional 3% interest subsidy as prompt repayment incentive (PRI), effectively reducing their interest rate on KCC loans to 4%.
It also includes post-harvest loans against Negotiable Warehouse Receipts (NWRs) for small farmers with KCCs.
In the Budget 2025-26, the government announced to increase the loan limit under the MISS from Rs 3 lakh to Rs 5 lakh.
Implementation and Monitoring by the Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD).

The continuation of the support is critical in sustaining the flow of institutional credit to agriculture, which is vital for enhancing productivity and ensuring financial inclusion of small and marginal farmers.

Also Read: Kisan Credit Card bad loans rise by 42% in four years: RBI

Rising Rice Cultivation and its Ecological Cost

Context: India must balance food security with ecological sustainability by adopting climate-smart rice practices, and promoting pulses and oilseeds cultivation.

Relevance of the Topic: Mains: Rice Production in India and its ecological costs.

Rice Production in India

India is emerging as the top rice producer in the world with over 140 million tonnes of annual production.
With a buffer stock of 55-65 million tonnes and food security schemes reaching over 80 crore people, rice cultivation has played a vital role in alleviating extreme poverty (now estimated at 2.3% as per World Bank estimates based on HCES data).

Ecological Costs of cultivating Rice

However, this comes with a price: the ecological costs of cultivating paddy.

Excessive Water Use: Rice is a water intensive crop. Producing 1 kg of rice requires over 3,500 litres of water. It depletes groundwater reserves, especially in Punjab, Karnataka, and Andhra Pradesh.
Virtual Water Export: India exported nearly 20 million tonnes of rice in FY25 (14 million non-basmati). This amounted to an export of large quantities of water (virtual water export) worsening India’s water stress.
Energy-Water Paradox: Use of rice for making ethanol amounts to the ironical use of energy (pumping water out of the ground) and water to produce energy.

Sustainable Alternatives:

Gene-edited Rice varieties: Gene-edited rice varieties are expected to produce 10 million tonnes more paddy on 5 million less hectares than at present. They use less water, mature early, and are drought-resistant. However, these seed varieties should be priced at affordable rates to small farmers.
Indigenous Rice varieties: Indigenous varieties must be revived for their resilience to weather extremes as well as their nutritional value.
Methods like Direct Seeded Rice (DSR) and System of Rice Intensification (SRI):
- Direct Seeded Rice eliminates the practice of transplanting seedlings from nurseries to fields. Instead, the seeds are sown directly in the field using drills or machines. They save up to 25% water, fewer greenhouse gas emissions and reduce dependency on labour.
- System of Rice Intensification is a method of rice cultivation for increasing rice yield with reduced seed and water demand. SRI involves cultivating rice with as much organic manure as possible, starting with young seedlings planted singly at wider spacing in a square pattern; and with intermittent irrigation that keeps the soil moist but not inundated, and frequent inter-cultivation with a weeder that actively aerates the soil.
Promote Crop Diversification: Entrenched status quo of systemic support for rice and wheat, at the expense of other crops must be disrupted. Increases in minimum support prices have proved ineffective to this end, in the absence of timely procurement of other crops. Oilseeds and pulses must be given top priority.
ICAR must shift its focus from traditional Green Revolution methods to actively promoting climate-resilient, water-efficient rice varieties. Although some such strains have been developed, old varieties like Sona Masuri still dominate, highlighting the need for stronger institutional push.

Rice production in India needs an ecological and policy reset. With mounting environmental costs, India must embrace technological innovations, crop diversification, and institutional reforms to ensure climate-smart sustainable agriculture.

Gaps in India’s Irrigation System

Context: The recent suicide of a Young Farmer Award recipient from Maharashtra highlights the contentious issue of irrigation in India. It points towards the inequity in water distribution, social inequalities and issues in water governance.

Relevance of the Topic: Mains: Agriculture: Irrigation Challenges in India.

State of Irrigation in India

Agriculture accounts for almost 80% of the water withdrawal in India. Annually, 688 billion cubic metres of water is consumed by the farm sector.
Irrigation is an inevitable input for increasing agricultural production, however, access to water for irrigation remains a contentious issue.

Irrigation Challenges in India:

Poor Irrigation coverage: 52% of net sown area is still completely dependent on rainfall. Over-reliance on traditional sources like wells, tube wells, canals for flood irrigation.
Uneven rainfall: Irrigation is impacted by substantial spatial and temporal rainfall variation, exacerbated by climate change.
Outdated off-farm and on-farm infrastructure and poor maintenance reduce irrigation efficiency. E.g., Unlined canals and channels.
Lack of adoption of smart irrigation solutions like micro-irrigation, drip agriculture. E.g., Total area covered under micro-irrigation is 10.3 mha against potential of 69.5 mha.
Aggressive groundwater extraction for irrigation- Due to over extraction, almost 17% of India’s groundwater assessment units are deemed ‘over-exploited’ while 3.9% are in a ‘critical’ state. Intensive pumping has resulted in massive energy consumption resulting in excessive carbon emissions.
- Misaligned cropping patterns: Rampant cultivation of water-intensive crops (sugarcane, paddy, cotton) across water-stressed regions exhausts groundwater, thus requiring irrigation solutions. E.g., Sugarcane cultivation in water-stressed Maharashtra.
- Loose regulation: The Easement Act, 1882, provides every landowner with the right to collect and dispose of all water under the land/over surface, i.e., the owner can dig wells and extract water based on his discretion. Additionally, landowners are not legally liable for any damage caused to water resources because of over-extraction.
- Gap between potential created and utilised: Despite heavy public expenditure on canals, governments have not been able to reduce groundwater depletion. E.g., Irrigation Potential Utilised (IPU) is 80 million hectares against Irrigation Potential Created (IPC) of 109 mha presently.
Inordinate delay in completion of irrigation projects due to delayed tendering, contract management, land acquisition etc. The operating efficiency and water use efficiency has also remained sub-optimal in Indian agriculture. While irrigation systems in India report an operating efficiency of 38%, in developed countries it is 55%.

Marginalised groups, especially women, are disproportionately affected by increasing deprivation and decline of water tables with climate change intensifying disparities.

Way Forward

Enhancing water efficiency:
- In irrigated areas by reducing the difference between IPC and IPU through proper maintenance of canals and rationalisation of water tariffs/power subsidies.
- In rain-fed areas by rainwater harvesting, creating check dams, convergence between MGNREGA and water conservation, desilting ponds and water bodies.
Adoption of Model Bill to control and regulate extraction of groundwater, setting up of Groundwater Regulating Authority, compulsory registration of borewell-owners etc.
Policy-led shift in cropping patterns towards crops suiting regional agro-climatic conditions, less water-intensive crops and crop-diversification.
Participatory irrigation management involving farmers in planning, design, development, and management of water resources schemes and capacity building.
Promotion of micro-irrigation techniques like drip and sprinkler irrigation.
Alternative water management technologies such as alternate wetting and drying, which can result in significant water saving and reduced emissions, may be popularised.

It is imperative for India to redesign its irrigation policy to ensure irrigation efficiency and rationalise the use of its limited water resources. This is pertinent to ensure food security to the growing population amidst climate change.

Also Read: Irrigation

Digitalising India’s Seed Value Chain: SATHI Portal

Context: The Government of India is rapidly expanding the implementation of the SATHI portal to enhance transparency, traceability, and quality assurance in India’s agricultural input systems.

As of mid-2025, 24 States have integrated with the portal, with complete national coverage expected before the Kharif 2026 season.

Relevance of the Topic: Prelims: Key facts related to SATHI Portal.

What is SATHI Portal?

SATHI stands for Seed Traceability, Authentication and Holistic Inventory.
Developed by: Ministry of Agriculture and Farmers’ Welfare in partnership with the National Informatics Centre (NIC).
Aim: To digitalise the entire Seed Retail Chain- from Seed Producing Agency, distributors, dealers, retailers to farmers to prevent the circulation of spurious or substandard seeds.

Key Features:

Centralised online portal for seed traceability, authentication and inventory.
Seven Integrated verticals of seed chain: Research Organisations, Seed Certification, Seed Licensing, Seed Catalogue, Dealer to Farmer Sales, Farmer Registration and Seed DBT.
QR coded seed packets: Each certified seed packet will carry a QR code. Farmers can scan the code to view the entire history of the seed- origin, grower, certifying agency, etc. The seeds would be certified under the supervision of State Seed Certification Agencies (SSCAs).
Seed DBT integration: Centrally registered farmers could buy seeds from valid licensed dealers at market prices, and receive the subsidy directly into their bank accounts.

Implementation Challenges:

There is an inherent 3-year lag in the seed certification cycle. So, even if a new seed variety is approved by the government today, it will only reach the farmers after 3 years. That means the data currently visible on the portal will mainly reflect older seed varieties, and the newly approved varieties will appear gradually over time.
Currently, uploading data to SATHI is optional for stakeholders. The government is considering amending the Seeds Act, 1966 to make data entry mandatory.

SAATHI aims to make the seed supply chain more efficient, accessible, save time and improve traceability, while guaranteeing the quality and purity of unadulterated seeds. Genuine seeds would ultimately contribute to increased agricultural production and enhanced income for the farmers.

What are Agri Photovoltaics?

Context: Agri Photovoltaics (APVs) offer a sustainable solution to boost farmers’ income by combining solar energy generation with crop cultivation. To scale effectively in India, APVs need supportive policies, standardised norms and strong financial incentives.

Relevance of the topic:

Prelims: Key facts related to Agri Photovoltaics.

Mains: How Agri Photovoltaics can transform Indian Agriculture.

Agri Photovoltaics

APV is a system that allows solar panels to be installed above farmland, enabling both electricity generation and crop cultivation on the same land.
Two common designs in APVs include:
- Growing crops between rows of solar panels
- Solar panels raised about 2 metres above the ground, allowing crops to grow underneath.
First proposed in 1981 by German scientists. APVs aim to maximise land-use efficiency and create dual income streams for farmers - from agriculture and solar energy.

Benefits of Agri Photovoltaics

Dual Revenue stream for Farmers: Farmers can earn both from crop cultivation and solar energy - either through lease income or direct energy sales to the grid. Ensures stable and diversified income, reducing dependence on unpredictable crop yields.
Efficient Land Use: Allows simultaneous food and energy production on the same land. Increases productivity per unit of land, vital for a country with just 2.4% of global land and 18% of population.
Improved Microclimate for crops: APVs may also create favourable microclimatic conditions that reduce water loss from and heat stress on plants.
Energy security: Supports India's solar mission and rural electrification by decentralising energy production. Contributes to India’s solar energy targets and aids to commitment to Net Zero emissions by 2070.

Challenges to Adoption of Agri Photovoltaics

High Capital Expenditure: While a typical 1-MW ground-mounted solar plant in 5 acres of land would cost around Rs 2.7 crore, an APV system will incur an additional 11% due to the specialised infrastructure it requires.
Lack of Standardised Guidelines: India currently lacks standardised norms for APVs, leading to ambiguity in project design and implementation. In contrast, countries like Japan and Germany have clear regulatory frameworks regarding panel height, crop yield loss, and land-use criteria for APV projects.

Japan mandates that:

APV structures must be temporary and removable.
Panel height must be at least 2 meters.
Crop yield loss must not exceed 20%.
Projects are reviewed every 3 years to assess their agricultural impact.

Germany, through its framework DIN SPEC 91434, requires:

At least 66% of the original agricultural yield (reference yield) must be maintained.
Only up to 15% of arable land can be used for solar infrastructure.

This ensures that agriculture remains the central focus, even with high energy output.

Low Feed-in Tariff (FiT) reducing project viability: Feed-in Tariff (FiT) is the fixed price at which power producers like farmers or solar developers can sell electricity back to the grid. FiT is often too low, reducing project viability. E.g., Under the PM-KUSUM scheme in Rajasthan, the FiT is ₹3.04/unit. At this rate, the payback period for a 1-MW ground-mounted solar plant is 15 years, which discourages investors due to the long return period.
Land Availability and Size: In India, over 86% of farmers are small and marginal, owning less than 2 hectares of land. Implementing APVs on smaller farms may not always be economically feasible due to land constraints and high initial costs.
Lack of farmer training and technical knowledge.

Way Forward

Learn lessons from Germany and Japan to develop national APV guidelines, incorporating clear specifications on panel height, permissible crop yield loss, and land-use norms.
Introduce a higher Feed-in Tariff (FiT), aligned with the thermal average power purchasing cost for State DISCOMs (₹4.52/unit), to reduce the payback period to just four years. This would make APV systems more economically attractive.
Expanding institutional support through grants or NABARD’s credit guarantee for APV investments candidates also lower financial barriers to smallholders.
Leveraging farmer institutions such as FPOs and cooperatives which can help farmers pool resources and provide stronger market linkages.
Capacity-building programmes training and equipping farmers with the expertise to manage APV systems.
Revamp PM KUSUM scheme on agricultural solarisation to accommodate APVs in its delivery system could help scale the innovation across the country.

Agri Photovoltaics hold great promise for transformation. However, success depends on two pillars: economic incentives and a robust policy framework that ensures farming remains central.

Centre hikes Fair and Remunerative Price for Sugarcane

Context: Cabinet Committee on Economic Affairs (CCEA) has approved a hike of ₹15/quintal in the fair and remunerative price (FRP) of sugarcane to ₹355/quintal, for the next sugar season beginning October (2025-26).

Relevance of the Topic:Prelims: Key facts about Fair and Remunerative Price.

Fair and Remunerative Price of Sugarcane:

Fair and Remunerative Price (FRP) is the minimum price declared by the central government that sugar mills are legally bound to pay to farmers for the sugarcane procured from them.
FRP is fixed under the Sugarcane (Control) Order, 1966.
FRP is determined on the recommendations of Commission for Agricultural Costs and Prices (CACP), by considering factors like:
- Cost of production
- Sugar recovery rate
- Market price of sugar
- Reasonable margins for farmers
The FRP system assures timely payment to farmers, irrespective of the profit and loss to sugar mills.
Alternatively, the states can set a separate SAP (State Advised Price), often higher than FRP to support local farmers.

Fair and Remunerative Price of Sugarcane is approved by

Cabinet Committee on Economic Affairs: CCEA (chaired by the Prime Minister) gives final approval to the FRP of sugarcane based on the CACP's recommendations.
Commission for Agricultural Costs and Prices: CACP recommends FRP after analysing various cost factors involved in sugarcane production. However, it does not have authority to approve the final FRP.

Note: The Sugar sector is completely controlled by the government (both Centre and States), which decides a host of issues such as location to set up factories, demarcated area to buy sugarcane, minimum cane price, minimum selling price of sugar, monthly allocation of sugar quota to be sold in domestic market, export permit and ethanol quantity to be sold to oil marketing companies.

How Governmentality exacerbates the problem of Stubble Burning

Context: Stubble burning is not just a result of farmers' apathy but a systemic outcome of distorted marketing systems and neo-liberal governance.

Relevance of the Topic: Mains: Factors leading to stubble burning.

Factors contributing to Pollution in Northern India

Every winter, the Indo-Gangetic Plains in India are enveloped in a dense shroud of pollution. Two major factors contributing to this alarming environmental condition are:

1. Temperature Inversion:

Withdrawal of monsoonal winds and the onset of cooler temperatures creates an Inversion Layer, an atmospheric condition conducive to pollution accumulation.
A layer of warm air traps cooler air beneath it, inhibiting vertical dispersion of pollutants such as vehicular emissions, industrial smoke, construction dust, and suspended particulate matter. These pollutants, instead of dispersing into the upper atmosphere, remain concentrated near the surface causing a dense smog.

2. Stubble Burning:

Farmers in Punjab, Haryana, Rajasthan and Uttar Pradesh rely on stubble burning as a cost-effective and time-saving method to clear paddy residue before sowing Rabi wheat.
As per a 2023 study by IIT Kanpur, IIT Delhi, TERI, and Airshed, stubble burning contributed an average of 22% to air pollution levels between mid-October and end-November 2022, with peak contributions reaching 35%. These findings are consistent with previous estimates ranging from 20% to 40%, underscoring the recurring and significant role of agricultural residue burning in deteriorating air quality.

Complex Issue of Stubble Burning

Although often viewed as a law-and-order issue or individual farmer negligence, recent studies indicate that this is a systemic outcome of distorted marketing systems and neo-liberal governance.

Distorted Agricultural Incentives: Preferential procurement of wheat and rice under Minimum Support Price, indirectly promotes monocropping and discourages crop diversification. The narrow crop choices reduce flexibility, compelling farmers to use quick and low-cost methods like stubble burning to prepare for the next sowing cycle.
Issues in APMCs and Intermediary dependence: The agricultural marketing system is dominated by middlemen (arhtiyas), who exercise control over pricing, credit access, and market connectivity. Farmers are often forced to sell at low prices, leading to chronic indebtedness and financial stress. Low crop prices → low income → less ability to afford clean alternatives → more stubble burning.
Stagnant MSP rates (E.g., wheat prices rose only 5% over a decade) fail to cover rising cultivation costs, including labour and equipment.
Neo-liberal Governance and ‘Governmentality’: Drawing from Michel Foucault’s concept of ‘governmentality’, the IIM Amritsar study highlights that the state nudges farmers toward self-regulation without adequate institutional support. On one hand, farmers are penalised for stubble burning, while on the other, the state continues to push for higher grain production to meet food security goals. This contradictory stance fosters sub-optimal behaviours like stubble burning as coping mechanisms within a broken system.

Hence, the state and market forces create a cycle of marginalisation, pushing farmers toward stubble burning as a survival tactic.

Remedial Measures

Market Development for Stubble-Based Products: Focus on developing a market for stubble and stubble-based products, such as fodder, energy products like pellets and packaging materials, aimed to boost farmers’ income, while simultaneously addressing climate change challenges.
Policy and Market intervention: Currently, there is a significant lack of an efficient market mechanism for farm-waste, underscoring the need for policy and market interventions to bridge this gap.
Fair prices for Farmers: Ensuring that farmers receive fair prices for their produce by addressing existing inefficiencies within the market system. Digitise procurement platforms to reduce intermediary exploitation.
Addressing Aspirational consumption: Recognise the role of aspirational consumption in exacerbating farm indebtedness. Socio-cultural organisations, including religious groups, could play a role in de-marketing non-essential aspirational consumption.

Also Read: Burning of Agricultural Residue

Stubble burning is not merely an act of environmental negligence but a manifestation of deeper agrarian and policy dysfunctions. Addressing the issue requires a farmer-centric, market-sensitive, and ecologically sustainable integrated approach.

Crisis in Cotton Production in India

Context: India’s cotton economy is not in great shape. India has no surplus in cotton and its yield at 450-kilogram per hectare is one of the lowest, against a global average of 800- kilogram plus.

Relevance of the Topic: Mains: Cotton production in India- challenges and opportunities.

Current Status of Cotton Production in India

Declining Output: India's cotton production for 2024–25 is projected at 294 lakh bales (lb)- the lowest since 2008–09. This marks a fall from a peak of 398 lb in 2013–14, representing a nearly 100 lb drop in a decade.
Net negative Exports: Once a major exporter, India cotton imports (30 lb) now exceed exports (17 lb). This shift raises concerns for India's textile and spinning industries.

Global Trade Context and Comparative Advantage:

Favorable US Tariffs on Indian Textiles: Under the US’s reciprocal tariff policy, Indian textiles face a relatively lower import duty (27%) compared to China (54%), Vietnam (46%), Bangladesh, Indonesia and Sri Lanka. Despite these favourable trade terms, India’s declining output limits its ability to capitalise on global export markets.

Fall in Cotton Production- Pink Bollworm (PBW) Crisis:

Cotton lint yields rose from 302 kg/ha in 2002–03 to 566 kg/ha in 2013–14, due to Bt cotton adoption. However, since the PBW resurgence, yields have declined to around 436–437 kg/ha over the last two years.
PBW is a monophagous pest that feeds exclusively on cotton bolls, damaging seeds and lint leading to yield loss and fibre discolouration.
Resistance to GM Bt Cotton: Bt hybrids carry two genes- cry1Ac and cry2Ab- originally effective against multiple pests. However, PBW developed resistance by 2014, making these genes ineffective.
Why did PBW adapt faster? Its exclusive diet (cotton only) allowed faster genetic resistance. A short life cycle (25-35 days) enabled 3-4 generations per crop season, speeding up resistance evolution.

Regulatory Process for GM Crop Approval: Stages of GM crop trials in India:

Event Selection Trial: Initial screening of gene effectiveness.
BRL-1 (2 years): Confined field trials on <1 acre plots.
BRL-2 (1 year): Expanded trials on up to 2.5 acres.
GEAC Clearance: Post-trial approval needed from the Genetic Engineering Appraisal Committee (GEAC).
State Government Approval: Necessary for field trial permissions.

Efforts to increase Cotton Production

Development of New GM Hybrids: Indian seed companies are developing hybrids using new Bt genes to combat PBW resistance. These include testing cry8Ea1 gene hybrids (Bioseed Research India); synthetic cry1c gene; chimeric Bt protein etc. However, the challenges include:
- Bureaucratic delays in regulatory clearances.
- Opposition from environmental groups.
- No GM crop commercialised since 2006 in India (after Monsanto’s Bollgard-2 Bt cotton).
Government Mission for Cotton Productivity: The 2025-26 Union Budget has announced an ambitious Rs 500 crore five-year plan to boost cotton production, promote extra-long staple cotton varieties, and promote scientific and technological support for cotton farmers.

Pink Ballworm has created an emergency-like situation in India’s cotton sector. The Central Government needs to adopt a more proactive approach with regard to new GM crop development and extending policy support.