New index to check ease of doing agri-business


What is Important?
From UPSC Perspectives
Prelims:About ease of doing agri-business
Mains:Highlights & Significance

Why in News?

States may soon start receiving extra funding for the Agriculture Ministry’s flagship schemes on the basis of their performance in encouraging agri-business.

Highlights:

*The Centre expects to roll out a new Ease of Doing Agri-Business Index which will rank the States on the basis of such reforms, as well as their investment in agriculture, increased productivity, reduction of input costs, and risk mitigation measures.
*The Agri Ministry will consider rewarding the higher performing States both in absolute and incremental terms by linking the performance with allocation from flexi funds made available in various flagship.
*NITI Aayog already brings out a Agricultural Marketing and Farm Friendly Reforms Index, rating States on their implementation of such reforms.
*In the initial edition of that Index in 2016, Maharashtra stood first in the rankings, followed by Gujarat.
*The proposed index has a wider ambit, but the focus is still on reforms, with marketing reforms (25%) and governance and land reforms (20%) carrying almost half of the weight of the parameters in its scoring system.
*The parameters are process-oriented, and are meant to evolve as and when new reforms or initiatives are proposed, says the concept note.
*As agriculture is a State subject, the success of policies and reform initiatives proposed at the Centre is dependent on implementation by the States.
*To ensure that reform agenda of the government is implemented at a desired pace by all State governments, there is a need to develop a competitive spirit between the States.
*Another major parameter which States will be rated on is their success in reducing the cost of farm inputs (20%) by distributing soil health cards and encouraging organic farming and micro-irrigation.
*Risk mitigation measures such as crop and livestock insurance carry a 15% weightage, while increased productivity and investment in agriculture carry a 10% weight each.





New index to check ease of doing agri-business New index to check ease of doing agri-business Reviewed by The Hindu Current Affairs on November 14, 2018 Rating: 5

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