Economy
Agricultural Economy
Agricultural Economy — Quick Revision
One-page CGPSC quick revision for Agricultural Economy: land reforms, MSP, procurement, credit, crop insurance and income support in tables.
Land reforms, MSP and procurement, agricultural credit, and crop insurance with income support on one page. For explanations, go back to the chapter.
How to use this sheet
Scan it top to bottom in the week before Prelims. Bold entries are the facts examiners return to most often. Figures marked with a year change every season, so check the latest before the exam.
Land Reforms
| Fact | Detail |
|---|---|
| Land in the Constitution | State List, Entry 18 |
| Five components | Intermediary abolition · tenancy reform · ceilings · consolidation · land records |
| Most / least successful | Intermediary abolition / ceilings |
| Chhattisgarh abolition law | MP Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950 (malguzari, zamindari) |
| Rent norm (First Plan) | One-fourth to one-fifth of produce |
| Kerala | Land Reforms (Amendment) Act 1969; tenancy ended from 1 Jan 1970 |
| Operation Barga | West Bengal, 1978: sharecroppers recorded |
| 1972 ceiling guidelines | Family as unit; lower ceilings; fewer exemptions |
| Bhoodan | Vinoba Bhave, 18 April 1951, Pochampalli (Telangana) |
| First Amendment (1951) | Art 31A, 31B, Ninth Schedule |
| 44th Amendment (1978) | Property → Art 300A (constitutional, not fundamental, right) |
| I.R. Coelho (2007) | Ninth Schedule laws after 24 April 1973 open to basic-structure review |
| NLRMP → DILRMP | 2008 → 2016; ULPIN (“Bhu-Aadhaar”, 14 digits) |
| SVAMITVA | 24 April 2020; drones; property cards for abadi land |
| Model Land Leasing Act | 2016, NITI Aayog (T. Haque) |
| Holdings (Agri Census 2015-16) | Small + marginal 86.08%; average 1.08 ha (2.28 ha in 1970-71) |
| CG tribal land | Land Revenue Code 1959: Sec 165(6) restricts transfer; Sec 170B restores |
MSP and Procurement
| Fact | Detail |
|---|---|
| CACP | 1965 as Agricultural Prices Commission; renamed 1985; attached office, recommends |
| Approves MSP | CCEA |
| Mandated crops | 22 = 14 kharif + 6 rabi + 2 commercial (jute, copra) |
| Sugarcane | FRP (Sugarcane Control Order 1966); legally binding on mills |
| Cost concepts | A2 paid-out · A2+FL + family labour · C2 + owned land rent and capital interest |
| 1.5× rule | Budget 2018-19, on A2+FL |
| Swaminathan (NCF 2004–06) | Cost + 50% (read as C2 + 50%) |
| Paddy MSP, common | ₹2,183 (2023-24) · ₹2,369 (2025-26) · ₹2,441 (2026-27) |
| Wheat MSP | ₹2,585 (RMS 2026-27) |
| FCI | 1965, Food Corporations Act 1964 |
| Decentralised Procurement | 1997-98; Chhattisgarh procures paddy under DCP |
| PM-AASHA | 2018: PSS (buy), PDPS (pay gap), PPSS (private pilot) |
| Pulses mission | 2025-26 to 2030-31, ₹11,440 crore; 100% procurement of tur, urad, masoor for 4 years (NAFED, NCCF) |
| PSF / MIS | Consumer buffers (2014-15) / perishables |
| e-NAM | 14 April 2016 (SFAC) |
| Farm laws | Sept 2020 → repealed Nov 2021 |
| Shanta Kumar HLC | 2015: about 6% of farmers sell at MSP to agencies |
| NFSA | 2013: 75% rural, 50% urban; 5 kg/person; AAY 35 kg/household; free for 5 years from 1 Jan 2024 |
| WTO | De minimis 10% for developing countries; peace clause (Bali 2013); India first to invoke it (rice) |
| CG effective paddy price | ₹3,100/quintal, 21 quintals/acre (Krishak Unnati, as of 2025-26); MARKFED and cooperatives |
Agricultural Credit
| Fact | Detail |
|---|---|
| Cooperative Credit Societies Act | 1904 |
| All India Rural Credit Survey | 1951–54, A.D. Gorwala → SBI (1 July 1955) |
| Nationalisation, Lead Bank Scheme | 1969 |
| RRBs | 2 Oct 1975; Narasimham Working Group; RRB Act 1976; Prathama Bank first; 50:35:15 (Centre, sponsor, State) |
| NABARD | 12 July 1982; CRAFICARD (B. Sivaraman); Mumbai; wholly GoI-owned |
| NABARD tools | Refinance, supervision of RRBs and coop banks, RIDF (1995-96), SHG–Bank Linkage (1992) |
| Coop structure | Short-term: StCB → DCCB → PACS; long-term: SCARDB → PCARDB |
| 97th Amendment | 2011: Part IXB; 2021 SC limited it to multi-state cooperatives |
| Ministry of Cooperation | 6 July 2021 |
| PSL | 40% total; 18% agriculture; 10% small and marginal farmers |
| KCC | 1998 (R.V. Gupta); RuPay; animal husbandry and fisheries 2018-19 |
| MISS | Up to ₹3 lakh at 7%; 1.5% to lenders; 3% PRI → 4%; ₹5 lakh limit announced in Budget 2025-26 |
| Collateral-free | ₹2 lakh from 1 Jan 2025 |
| Agriculture Infrastructure Fund | 2020; ₹1 lakh crore; 3% subvention up to ₹2 crore |
| NSO SAS 77th round (2019) | 50.2% indebted; ₹74,121 average outstanding |
| Waivers | Centre 2008 (ADWDRS); Chhattisgarh Dec 2018 |
| CG credit | Interest-free coop crop loans; single SBI-sponsored RRB (2013; renamed Chhattisgarh Gramin Bank in 2025, as reported) |
Crop Insurance and Income Support
| Fact | Detail |
|---|---|
| CCIS | 1985, first nationwide |
| NAIS / WBCIS / AIC | 1999-2000 / 2007 / 2002 |
| PMFBY | Kharif 2016; RWBCIS alongside |
| Farmer premium | 2% kharif · 1.5% rabi · 5% commercial/horticultural |
| Balance premium | Centre:State 50:50; 90:10 NE and Himalayan |
| 2020 revamp | Voluntary for all; subsidy cap 30% / 25% |
| Jan 2025 | Extended to 2025-26 (about ₹69,515 crore); FIAT (YES-TECH, WINDS) |
| From kharif 2026 | Wild animal attack add-on; paddy inundation restored |
| Post-harvest cover | 14 days |
| PM-KISAN | ₹6,000/year, 3 × ₹2,000; launched 24 Feb 2019, Gorakhpur; effective 1 Dec 2018; landholders only |
| State schemes | Rythu Bandhu (Telangana 2018); KALIA (Odisha Dec 2018); Kisan Nyay (CG, 21 May 2020); Krishak Unnati (CG, 12 Mar 2024); landless ₹10,000/year (CG, 20 Jan 2025) |
Don’t Confuse
| This | vs | That |
|---|---|---|
| CACP recommends | vs | CCEA approves |
| MSP: no legal backing | vs | FRP: legally binding (sugarcane) |
| A2+FL × 1.5: government formula | vs | C2 + 50%: farmers’ demand |
| PSS: buy the crop | vs | PDPS: pay the price gap |
| DCP: State procures | vs | Centralised: FCI procures |
| CRAFICARD → NABARD | vs | Narasimham Working Group → RRBs |
| NABARD (1982): agriculture | vs | SIDBI (1990): MSMEs |
| Interest subvention: to lenders | vs | Prompt Repayment Incentive: to farmers |
| PMFBY: yield-based | vs | RWBCIS: weather-index-based |
| PM-KISAN: landholders, ₹6,000 | vs | CG landless scheme: landless labourers, ₹10,000 |
| Bhoodan: land gift by individuals | vs | Gramdan: whole village pools land |
| DILRMP: all land records | vs | SVAMITVA: inhabited village land |
| ₹2,441: Central paddy MSP (2026-27) | vs | ₹3,100: Chhattisgarh’s effective price |
Favourite MCQ traps
- CACP is not statutory: it is an attached office of the Ministry of Agriculture.
- Effective crop-loan interest is 4%, not 7%, for prompt repayers.
- PMFBY has been voluntary for all farmers since kharif 2020.
- Land is a State subject, which is why land reform laws differ from state to state.
- ₹3,100 is not an MSP: it is MSP plus Chhattisgarh’s input assistance.
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