E-Technology in the Aid of Farmers Issues Related To Direct and Indirect Farm Subsidies and Minimum Support Prices;

GS-3

NATIONAL AGRICULTURE MARKET (E-NAM)

The government announced in the budget 2021-22 that the e-NAM is being expanded to integrate 1000 more mandis.

e-NAM:

National Agriculture Market popularly known as e-NAM was an innovative initiative in agricultural marketing to enhance farmer’s accessibility digitally to multiple numbers of markets & buyers and to bring transparency in trade transactions with the intent to improve price discovery mechanism, quality commensurate price realization and also to develop the concept of “One Nation One Market” for agriculture produce.

POWER SECTOR REFORMS

Andhra Pradesh becomes the 2nd state to undertake Power Sector reforms

Important points.

Andhra Pradesh has become the second state to undertake the power sector reforms stipulated by the Department of Expenditure, Ministry of Finance.
As part of the reforms, the state has started Direct Benefit Transfer (DBT) of electricity subsidy to farmers with effect from September 2020.
Thus, the state has successfully implemented one out of the three stipulated reforms in the power sector.
Due to the successful implementation of the reform, Dept. the of Expenditure has given permission to the state to raise additional borrowing of Rs. 1,515 crore.
Andhra Pradesh is the second state to undertake power sector reforms after Madhya Pradesh.

Significance:

Power Sector reforms stipulated by the Ministry of Finance aim at creating a transparent and hassle free provision of power subsidy to farmers and prevent leakages.
They also aim at improving the health of power distribution companies by alleviating their liquidity stress in a sustainable manner.
As per the guidelines, the states undertaking reforms in power sector are granted permission to raise additional financial resources of up to 25 percent of the GSDP

Set of 3 reforms in the sector:

05 % of GSDP for reduction in Aggregate Technical & Commercial losses in the state as per prescribed targets.
Another 0.05 % of GSDP is allowed for reduction in the gap between Average Cost of Supply and Average Revenue Realisation (ACS-ARR gap) in the state as per prescribed targets.
Finally, 0.15 % of GSDP of the state on introduction of Direct Benefit Transfer (DBT) to all farmers in the state in lieu of free/subsidised electricity. For this, the state government has to frame a scheme for transfer of cash and implement the scheme in at least one district by 31st December 2020.
Andhra Pradesh has implemented the scheme from Sep 2020 in Srikakulam District and plans to roll out in the entire state from April 2021

SOURCE:PIB

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