Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 8 December 2020

How about introducing a PLI for agricultural produce ?

 


 

Dear Shri Tomarji,


Government has committed to double the farm income by 2022

The 3 Farm Laws are one of the instruments for achieving this objective. Unfortunately , these have lead to the current agitation ( - for which , I am sure you will find a WIN WIN solution )

Irrespective of whatever compromise that Govt manages to reach with the farmers, I suggest introduction of a Production Linked Incentive ( PLI ) for farm produce , by treating agriculture as an INDUSTRY ( as recently announced for automobiles / auto components / pharmaceuticals / speciality steel / telecom and networking / electronics and technology products / white goods ( ACs & LEDs ) /   textiles / solar PV modules / food products / ACC Battery )

Logic :

As compared with rest of the world ( other countries ), productivity of major crops in India , is very low , as can be seen in following table ( source : TOI / 8 Dec 2020 )

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Productivity Comparison for Major Crops ( 2018 figures , in Kg / Hectare )

Crop

World’s Highest

World Average

India ave

India’s Highest

Rice

7027

4679

2638

4132 ( Punjab )

Maize

11864

5924

3070

7258 ( TN )

Total Pulses

1950

964

 757

  916 ( MP )

Tur

1743

852

 729

1209 ( Guj )

Soybean

3468

2791

1192

1254 ( Raj )

Groundnut

4473

1611

1422

2718 ( TN )

  

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Can we come up with a FORMULA ( obviously, to be devised by Farm Experts ) whereby , a farmer gets a certain ( graded ) INCENTIVE for each SLAB of “ Increased output “ , over the BASE OUTPUT for the BASE YEAR ?

We already know :

Ø  Each farmer ( by Aadhar / Jan Dhan a/c / Mobile etc )

Ø  Farm holding ( hectares ) of each farm

Ø  Each farmer’s output ( ave of past 3 years )

We can take help of NaVIC satellite based technology to automatically compute the yield of each  and every farm , compute the INCENTIVE AMOUNT and automatically transfer ( DBT ) into each farmer’s bank account . Absolutely NO human intervention / no middlemen ( adatiyas ) !

By no means, I am suggesting that this mechanism ( to incentivize the farmers to raise the productivity and catch-up with the World ), is meant to replace MSP , which should continue as before

Nor would this PLI scheme bind the farmers to sell their produce within and outside of APMC mandis or prevent the Govt to buy it at MSP

 

With regards,

Hemen Parekh / hcp@RecruitGuru.com / 08 Dec 2020

 

Related Readings :

Influence farmers and win Votes ? 

Selling Farm Laws before selling Farm Crops

 

 

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