in 1985, with the Comprehensive Crop Insurance Scheme. The CCIS has been replaced by the National Agriculture Insurance Scheme. The main flaws of the NAIS are the goal of financial viability, its mandatory nature, its failure to address adverse selection, arbitrary premiums, and the area approach/ The Comprehensive Crop Insurance Scheme, predecessor to the NAIS, was implemented for 15 years, from Kharif 1985 to Kharif 1999
Agri insurance enam mnarega
E- National Agri Market
MNREGA: 10 years
Agricultural Insurance in India
NRLM Extention to IAP Districts
Doubling Farmers Income by
Farming: Free Enterprise, Risky
Farmers at Disadvantage at Factor as
well as Product Market.
Constraint on Cash Availability
Stressors: WTO, GM Crops, Truant
Rainfall, Semi-feudal structure of
farming society etc leads to Suicide. 2
ELECTRONIC NATIONAL AGRICULTURE MARKET
By : Harveer Singh
Budget announcements of 2014 and 2015
on setting up an “Agri-Tech Infrastructure
Fund” and on ‘Unified National Agriculture
The Department of Agriculture &
Cooperation has formulated the Central
Sector scheme for Promotion of National
Agriculture Market through Agri-Tech
Infrastructure Fund (ATIF) through provision
of the common e-platform.
Agriculture is a “State Subject” under the
Constitution of India. Union Govt supplements
the efforts of State Govt.
All States Except Bihar and Kerala, have their
respective APMC (Agricultural Produce and
Marketing Committees” Act to regulate
agricultural Produce sale.
There are 6,500 Agricultural Mandis across the
country. The Number symbolizes Agri-Market
fragmentation impacting mobility and Prices.
Small Farmers’ Agribusiness Consortium
(SFAC) is operating the NAM
2003 CENTRAL MODEL ACT
Aim was to attract private investment in
constructing market yards and creating
the post-harvest value chain comprising
cold stores, warehouses and logistics
Act provides for
Direct deals between the growers and end-
users of agro-commodities
Legalisation of contract farming
GOAL AND MILESTONE TIMELINE (3 PHASES)
FEW MORE FACTS
Material flow (agriculture produce) continue to
happen through mandis, an online market reduces
transaction costs and information asymmetry.
Department of Agriculture, Cooperation & Farmers’
Welfare (DAC&FW) is meeting expenses on
software and its customisation for the States and is
providing it free of cost.
DAC&FW is also giving a grant as one time fixed
cost subject to the ceiling of Rs.30.00 lakhs per
COMPONENTS OF NAM
Harmonisation of quality standards of agricultural
produce and provision for assaying (quality testing)
infrastructure in every market to enable informed
bidding by buyers.
Common tradable parameters have so far been
developed for 25 commodities.
Single point levy of market fees, i.e on the first
wholesale purchase from the farmer.
Provision of Soil Testing Laboratories in/ or near the
selected mandi to facilitate visiting farmers to
access this facility in the mandi itself.
1 2 3
license to be
a mode for
BENEFITS OF NAM
For farmers, NAM promises more options
for selling their produce and competitive
For local traders, NAM will provide access
to larger national market for secondary
For bulk buyers, processers, exporters,
NAM will enable direct participation in the
local mandi trade, reducing intermediation
Stable prices and availability to consumer.
BENEFITS OF NAM
Monitoring and regulation of
traders and commission agents;
Completely transparent system
Improvement in the market fee
Reduction in manpower
requirements as tendering /
IT DOES NOT INCLUDE
Direct sale by farmers to processors, or, contract
marketing without bringing produce to mandi;
Even under e-NAM, market committee will continue
to hold its monopoly power in terms of offering a
platform for sale/purchase;
Removal of legal barriers to entry of orgnised and
modern capital and investments into agricultural
Rationalisation of market fee, commission charges,
cess and taxes and development charges
10 YEARS OF MNAREGA
By: Harveer Singh
2005 President Kalam gives assent to NREGA, a
program for livelihood security. Unskilled 100
days of compulsory work to one adult member of
the family in rural India.
2006 Launched in Anantpur District (AP). First Phase
200 District covered.
2007 Program extended to 130 additional district and
2008 Remaining areas covered under it. Social Audit
Post Office and Bank Account Payment.
2008 Name changed to MGNREGA
2011 Wages linked to Inflation
2012 Budget reduced to 33,000 crore (from 40,000 crore
in previous year)
Flood Management, Livestock, Fisheries, Sanitation
added to Activities.
2014 Govt thought of restricting it to 200 Needy districts
only. Drops the idea.
2015 100 to 150 days in Draught hit areas.
Budget increased to 34,699 Crore. Assures 5000
more crores if needed.
2016 Happy 10th Years completion. 18
It is world’s largest public
It is demand driven so
(additional employment and
Local implementation is the
SOME FACTS ABOUT MNAREGA
India has spent Rs.3.1 trillion on the implementation
created 19.8 billion work days for people
It largely led to a reduction of distress.
Also helped in increase in rural incomes in the
created assets: small check dams and other water
conservation projects, afforestation and land
development projects are of a quality that will stand
the test of time
SOME FACTS ABOUT MNAREGA
44% of all wage payments are being
made on time
More than half of those who
demanded work were women
MNREGA decreased short-term
migration by 10% and had no effect on
NOMINAL AND REAL EXPENDITURE ON
concurrent social audits and
community monitoring will be
undertaken to ensure that assets
created under the programme are
durable and long-lasting.
sustainable individual assets to benefit
the poor and vulnerable
households (Farm Ponds, Vermi
Generation of employment has
seen a sharp decline from the
peak of 2,840 million person-days
in 2009-10 to 1,550 million
person-days last year. (45%.
IS MNREGA HARMFUL TO THE INTERESTS
OF FARMERS ?
The most prominent accusation is that MNREGA has led
to a shortage of workers available for farm work, and
hence, increased agricultural wages.
It is alleged that this has resulted in an increased
production costs, and has made farming difficult and
unviable (Murthy and Mishra 2012).
MNREGA participation is higher in villages where there
are fewer landless households.
A major part of asset creation under MNREGA has been
for the benefit of small and marginal farm holdings,
particularly Scheduled Castes/ Scheduled Tribes (SC/
STANDING COMMITTEEON RURAL
Ensuring livelihood for people in rural areas.
Large scale participation of women, Scheduled
Castes and Scheduled Tribes (SCs/STs) and other
traditionally marginalised sections of
society. SCs/STs account for 51% of the total
person-days generated and women account for
47% of the total person-days generated.
Increasing the wage rate in rural areas and
strengthening the rural economy through the
creation of infrastructure assets.
Facilitating sustainable development, and
Strengthening PRIs by involving them in the
planning and monitoring of the scheme. 26
Source: PRS INDIA
ISSUES IN IMPLEMENTATION OF SCHEME:
Fabrication of job cards: While as many as 12.5 crore households
have been issued job cards out of an estimated 13.8 crore rural
households ( as per the 2001 census), there are several issues related to
existence of fake job cards, inclusion of fictitious names, missing entries
and delays in making entries in job cards.
Delay in payment of wages: Most states have failed to disburse wages
within 15 days as mandated by MGNREGA. In addition, workers are not
compensated for a delay in payment of wages.
Non payment of unemployment allowances: Most states do not pay
an unemployment allowance when work is not given on demand. The
non-issuance of dated receipts of demanded work prevents workers from
claiming an unemployment allowance.
Large number of incomplete works: There has been a delay in the
completion of works under MGNREGA and inspection of projects has
been irregular. Implementing agencies were able to complete only 98
lakh works out of 296 lakh works. As Table 2 shows, a large percentage
of works remain incomplete under MGNREGA and the work completion
rate appears to be decreasing in recent years.
Indian agriculture is about seasonality:
Lean/Slack season. MNAREGA works as
the supplementary income tool.
Creation of Productive Assets.
Bargaining Powers to Rural Workers.
Rise of Real rural wages in India: has the
impact of rural distress.
COMPREHENSIVE AGRI INSURANCE
Monsoon is Truant and Unpredictable. The
global warming and El Nino type events are
already adding to its unpredictability.
Significant Population derives its livelihood
Overall impact on the economy due to
worsening of rural demands.
31HARVEERSIR for GSSCORE
# AGRI- INSURANCE
Threshold Yield: Average yield
of the preceding 7 or 3 years
Actuarial Basis: Forecasted
Reference Weather Station
Reference Unit Area
32HARVEERSIR for GSSCORE
CHALLENGES FOR AGRI INSURANCE INDIA
17-27% losses are post harvest losses
Different Premiums and High
Assessment and conflict of Claims
3 Year yield level
Less finance allocation
(NAIS) or RKBY Modified NAIS
Covers Loanee and Non-
Implemented at District
Level (Widespread and
The unit area of insurance is
village panchayat level.
coverage of Post harvest losses
due to coastal cyclone
Private sector insurers apart from
Agriculture Insurance Company (AIC)
of India, are also permitted to
implement the scheme
34HARVEERSIR for GSSCORE
THE INSURANCE PENETRATION
According to Census 2011, India had
95.8 million farmers.
But in the six farming seasons
covering 2011 to 2013, only an
average of 12.7 million took crop
That’s one in about eight farmers
36HARVEERSIR for GSSCORE
Along with the unawareness and lack of
37HARVEERSIR for GSSCORE
Agri insurance related
17-27% losses are
post harvest losses
and High Premiums
conflict of Claims
3 Year yield level
•Post harvest losses
•25% upfront payment
•Low Premiums= Rabi and
assessment is final
•7000 crore allocation
•village level assessment
•Use of technology/ Remote
38HARVEERSIR for GSSCORE
uniform premium of only 2% to
be paid by farmers for all
Kharif crops and 1.5% for all
In case of annual commercial
and horticultural crops, the
premium to be paid by farmers
will be only 5%.
39HARVEERSIR for GSSCORE
There is no upper limit on
Government subsidy. Even if
balance premium is 90%, it will be
borne by the Government.
farmers will get claim against full
sum insured without any
40HARVEERSIR for GSSCORE