rawan239

Historical context

• The emergence of agricultural Price Policy in India was in the backdrop of food scarcity and price fluctuations provoked by drought, floods and international prices for exports and imports. This policy in general was directed towards ensuring reasonable food prices for consumers by providing food grains through Public Distribution System (PDS) and inducing adoption of the new technology for increasing yield by providing a price support mechanism through Minimum Support Price (MSP) system.
• In recognition of the importance of assuring reasonable produce prices to the farmers, motivating them to adopt improved technology and to promote investment by them in farm enterprises, the Agricultural Prices Commission (renamed as the Commission for Agricultural Costs and Prices in 1985) was established in 1965 for advising the Government on agricultural prices policy on a continuing basis.
• The thrust of the policy in 1965 was to evolve a balanced and integrated structure to meet the overall needs of the economy and with due regard to the interests of the producers and the consumers. The first Commission was headed by Prof M L Dantwala and in its final report the Commission suggested the Minimum Support Prices for Paddy.

Minimum Support Price (MSP):- is a form of market intervention by the Government of Indiato insure agricultural producers against any sharp fall in farm prices.

• The minimum support prices are announced by the Government of Indiaat the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). 
• MSP is price fixed by Government of India to protect theproducer – farmers – against excessive fall in price during bumperproduction years.
• The minimum support prices are a guarantee price for their produce from the Government that this will be the minimum price at which their product will fetch.
• If the market price is above,MSP,the farmer can obviously sell it at the marketIn case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market,government agencies purchase the entire quantity offered by the farmers at the announced minimum price.

  The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.

  As of 2015-16, Minimum support prices are currently announced for 24 commodities,which includes food grains like Wheat,paddy etc and non-food crops like raw cotton,raw jute etc.

• A pilot project under the Direct Payment Deficiency System (DPDS) for paying MSP guarantee for the cotton farmers has been initiated at Hinganghat taluka of Maharashtra in 2015. Under this system, the farmers will directly get the amount which is the difference between the Minimum Support Price (MSP) and the market price, should the market price fall below the MSP. For availing of the benefit, farmers would have to present proof of cotton sold at Agriculture Produce Market Committee yards, plus other papers such as ownership document, yield estimation and other details. If the pilot is successful, the DPDS would be rolled out in all cotton growing regions, as per the present decision. DPDS is essentially a mode of direct benefit transfer to cotton farmers.

  Then there is this concept ofPROCUREMENT PRICE, which is the price at which government procures food grains for buffer stocking and PDS purposes through FCI.

• Consider the situation where,in the wake of an imminent food shortage that may occur, the traders are willing to procure food grains in advance,driving up the market price.

• When the market prices are much higher than the MSP,the farmer will obviously be willing to sell it in the market.
• But the government,still, needs to procure food grains on its own to meet its distribution commitments inPDS at subsidised rates(issue price) and to create the buffer stock,necessary to intervene from supply side in case there is food deficiency and high food inflation.
• Therefore the government so as to fulfil these commitments,declares a Procurement price which is > or = to the MSP.

  The major difference between MSP and PP is that while PP is forfood grains only, MSP is for 24 crops which includes both food grains and non-food grains.

Method of Calculation

• In formulating the recommendations in respect of the level of minimum support prices and other non-price measures, the CACP takes into account a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities.
• Other Factors include cost of production, changes in input prices, input-output price parity, trends in market prices, demand and supply, inter-crop price parity, effect on industrial cost structure, effect on cost of living, effect on general price level, international price situation, parity between prices paid and prices received by the farmers and effect on issue prices and implications for subsidy.
• The Commission makes use of both micro-level data and aggregates at the level of district, state and the country.

Supply related information – area, yield and production, imports, exports and domestic availability and stocks with the Government/public agencies or industry, cost of processing of agricultural products, cost of marketing – storage, transportation, processing, marketing services, taxes/fees and margins retained by market functionaries; etc. are also factored in.

Report of National Commission for Farmers (NCF) had recommended that MSP should be at least 50% more than the weighted average cost of production. However, this had not been accepted by the Government.
Procurement at MSP

• Farmers are made aware of the procurement operations by way of advertisements like displaying banners, pamphlets, announcement for procurement and specification in print and electronic media.
• Some States have taken steps to pre-register farmers for ensuring procurement from them through a software system.
• Keeping in view the procurement potential areas, procurement centres for MSP operations are opened by Government agencies, both Food Corporation of India (FCI) and State Government, after mutual consultations.

• Procurement centres are opened by respective State Govt. Agencies/ FCI taking into account the production, marketable surplus, convenience of farmers and availability of other logistics / infrastructure such as storage and transportation etc. Large number of temporary purchase centres in addition to the existing mandis and depots/godowns are also established at key points for the convenience of the farmers.
• The Govt. agencies also engage Co-operative Societies and Self Help Group which work as aggregators of produce from farmers and bring the produce to purchase centres being operated in particular locations/areas and increase outreach of MSP operations to small and marginal farmers. These Co-operative Societies are in addition to the direct purchases from farmers.
• Co-operative societies/Self Help Groups are engaged in many States like Bihar, Chhattisgarh, Odisha, Maharashtra, Karnataka, Jharkhand and Rajasthan. Whereas, in some states like Punjab and Haryana, the Government of India has permitted the State Governments to engage locals for procurement of food grains from the farmers on payment of commission. These steps have been taken by Government of India so that Govt. agencies can procure maximum food grains directly from farmers by expanding out- reach of MSP benefit to farmers.

• Food Corporation of India (FCI) is the designated central nodal agency for price support operations for cereals, pulses and oilseeds.

Chhatrapati Shivaji Maharaj (Shivaji Shahaji Bhosale) was the founder of strong Maratha Empire in the west part of India in 17th Century.

Chhatrapati Shivaji Maharaj (Shivaji Shahaji Bhosale) was born in the fort of Shivneri, near from city Junner (Pune District), in the year 1630 (19th February’ 1630). His mother Jijabai Bhosale named him Shivaji in the honor of goddess Shivai Devi. Chhatrapati Shivaji was devotAed to his mother Jijabai Bhosale, who was extreme religious. This kind of environment had put deep impact on Shivaji maharaj.

Expansion of Empire and Battles of Shivaji

• In the 1659 Adilshah sent Afzalkhan with the army of 75000 soldiers to destroy Shivaji with his empire. Chhatrapati Shivaji killed Afzal Khan with full diplomatically. He signaled his troops to start the great assault on the Adilshahi Sultanate.
• Shivaji defeated Kaltalf Khan, a sardar of Shahista Khan in the Battle of Umberkhind with few soldiers (Mavale).
• Aurangjeb sent his maternal uncle Shahista Khan with powerful army over 1,50,000 on request of Badibegum Sahiba, Adishahi sultanate. In the April 1663Chhatrapati Shivaji personally made surprise attack on Shahista Khan in the LalMahal Pune.
• Chhatrapati Shivaji sacked surat ,the wealthy city of mughal empire in 1664. Surat was the financial capital of mughal& trading centre.
• Chhatrapati Shivaji agreed to give 23 forts and Rs. 4,00,000/- hone, to let his son Sambhaji become Mughal Sardar and ready to meet with Aurangjeb in the treaty of Purander between Chhatrapati Shivaji and Mirza Raje Jaisingh on behalf of Mughal.
• Chhatrapati Shivaji gained lot of province till jinji in Karnataka after coronation in the period of 1677-1678.
• Aurangjeb invited Chhatrapati Shivaji to Agra on occasion of his 50th birth anniversary. However, in the court on 1666 Aurangjeb made in stand behind military commanders of his court.Shivaji got angry and he refused gift which offered by Aurangjeb and stormed out of the court. He was house arrested by Aurangjeb .Chhatrapati Shivaji made supreme plan and succeed to escape from Agra.

Ashtpradhans of Shivaji

It was dministrative and advisory council set up by the Indian Shivaji which contributed to his successful military attacks on the Muslim Mughal Empire and to the good government of the territory over which he established his rule.

• Peshwa- Prime Minister
• Amatya- Finance Department
• Sachiv- Home Secretary
• Sumant- Foreign Secretary
• Nyayadheesh- Judicial Magistarate
• Senapati- Commander In chief
• Panditrao- relifious matters
• Mantri- Day to day activities

Revenue Administration

T he assessment of revenue was made after a careful survey and classification of the lands according to their quality and yield. The share of the state was fixed at two-fifths of the gross produce. The cultivator was given the option of paying either in cash or kind.

Besides the land revenue, Shivaji had other sources of income, of which the most important were the chauth and sardeshmukhi. The chauth amounted to one-fourth of the standard revenue assessment of the place, while the sardeshmukhi was an additional levy of 10 per cent de­manded from areas outside his kingdom because he claimed to be the hereditary sardeshmukh (chief headman) of the entire Maratha country. These taxes were levied on those living outside Maratha kingdom as a safeguard (a kind of protection money) against Shivaji’s forces plundering or raiding their territory.

Marathas Consolidation and Northward Expansion

Age of Peshwas

Balaji Vishwanath

With Balaji Vishwanath in charge of the Maratha military and Kanhoji in charge of the Marathas Navy. This agreement set the course for Balaji Viswanatha’s rise as a Peshwa during his subsequent visit to Delhi with an army of 12,000 Marathas. During this visit to Delhi, on an invitation from the Syed brothers in their struggle with the Mughal Emperor Farrukhsiyyar, the Maratha forces led by Balaji Viswanath clashed with the forces of Mughal Emperor and defeated them. This was the first Maratha victory over the Mughals in Delhi. This event marks the asendency of the Marathas in Delhi an asendency that was to last for almost a century till they were supplanted by the British in 1803.

The Peshwas – Baji Rao, Balaji Baji Rao, Madha Rao
After Shahu, the de facto executive power passed into the hands of the hereditary Prime Ministers the Peshwas. Balaji Viawanath Bhatt was succeeded by his son Baji Rao the first. Baji Rao was a very able and ambitious soldier and he was the one who consolidated Maratha power in North India.

Baji Rao died at a relativey young age of 40 in the year 1740. His was succeeded by his son Balaji Baji Rao. Balaji Baji Rao played a tragic role in Maratha history and the fissiparous tendencies he let loose ultimately let to the downfall of the Maratha empire.
His first mistake was to go back on the agreement between his grandfather Balaji Viswanath Bhatt and Kanhoji Angre according to which the Peshwa was to have no direct control over the Maratha Navy. He attacked the his own navy and weakened one arm of the Maratha might.
During his rule, North India was invaded by Ahmed Shah Abdali first in 1756. Balaji Baji Rao then sent his brother Raghunath Rao along with Malharrao Holkar to defeat Abdali. Raghunath rao not only defeated Abdali but chased him up to the Khyber pass till Attock in Paktoonistan. .
This success of Raghunath Rao aroused the jealousy of Balaji Baji Rao’s wife Gopikabai, who started conspiring against Raghunath Rao to undermine his influence. This led to corresponding jealousy from Anandibai who was Ragunath Rao’s wife. The unfortunate fallout of this court intrigue ws to end in the disastrous 3rd battle of Panipat in 1761.

The 3rd Battle of Panipat
When Abdali launched his second invasion in 1759 the Marathas who after their successes in 1756 had been hibernating in Maharashtra and Central India again woke up and in alliance with the Jat King Suraj Mal of Bharatpur formed an alliance. This alliance led by Shrimant Sadshiv Rao Bhau and Shrimant Vishwas Rao (the Peshwa Shrimant Balaji Baji Rao’s son) won spectacular victories and captured Delhi and Kunjapura (where the Afghan treasury and armoury was located). Here the alliance developed cracks due to the Maratha insistence on not allowing the Jats to loot Delhi. This ultimately split the alliance and Suraj Mal withdrew from the alliance. The Marathas consequently marched upto Panipat, but instead of continuing their attacks to completely defeat the partly defeated Abdali and Najib Khan, they stayed put at Panipat, blocking the way of the Afghans back to Afghanistan. Seeing their way back to their homeland blocked, the Afghans now became restless. They in turn, decided to block the way of the Marathas back into the Deccan.
This stand-off continued for one whole year from the 14th of January 1760 up to the 14th of January 1761. This led to the fall in the morale of the stranded Marathas and ultimatley led to their defeat at Panipat.

The Afghans with Najib Khan meanwhile also recaptured Delhi and Kunjpura. On the decisive day of 14th January 1761 (Makar Sankranti), the Marathas decided to break-through the Afghan blockade and re-enter Deccan. The disastrous battle saw about one hundred thousand Maratha troops being slaughtered in a matter of eight hours. But the Afghans too suffered heavy losses and decided enough was enough and went back to Afghanistan never to return to India.
The defeat of the Marathas and the withdrawal of the Afghans created a power vacuum in North India in the period 1761-1790. It was this vacuum that was filled up by the rising British power. But more of this later.

Climatic Regions of India :Trewartha’s Classification