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05/02/2012

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Sections

  • 1. Macro-economics
  • 1.1. Tenth plan
  • 1.2. Eleventh plan
  • 1.3. Vision 2020
  • 2.1. Soil type
  • 2.2. Waste land
  • 3. Agriculture
  • 3.1. Food grains8
  • 3.2. Commercial crops
  • 3.3. Cropping season
  • 3.4. Agriculture exports
  • 3.5. Irrigation
  • 3.6. Revolutions
  • 3.7. Agriculture: At A Glance
  • 3.8. India and world: comparison in agriculture
  • 4. Agri Business
  • 4.1. Fertilizer and pesticides
  • 4.2. Food processing
  • 4.3. Agriculture machinery
  • 4.4. Agriculture markets
  • 4.6. Agriculture finance
  • 5. Forest
  • 6. Agriculture Allied Activities
  • 6.1. Horticulture
  • 6.2. Poultry
  • 6.3. Dairy
  • 6.4. Sericulture
  • 6.5. Fish
  • 6.6. Animal Husbandry
  • 7. Land reforms
  • 8. NGOs22
  • 9. Development schemes and indicators
  • 9.1. HDI index
  • 9.2. IRDP
  • 9.3. Self Employment programs
  • 9.4. Wage Employment programs
  • 9.5. Education
  • 9.6. Health
  • 10. Micro finance
  • 11. Cooperatives
  • 12. Retail revolution and farmer
  • 13. ITC e-Choupal
  • 14. WTO and Indian agriculture
  • 15. Important Institutions
  • Important Institutions

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1. Macro-economics ........................................................................................................ 3 1.1. 1.2. 1.3. 2. Tenth plan ............................................................................................................. 4 Eleventh plan ........................................................................................................ 6 Vision 2020 .......................................................................................................... 7

Land............................................................................................................................. 9 2.1. 2.2. Soil type................................................................................................................ 9 Waste land .......................................................................................................... 10

3.

Agriculture ................................................................................................................ 11 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Food grains ......................................................................................................... 13 Commercial crops............................................................................................... 14 Cropping season ................................................................................................. 15 Agriculture exports ............................................................................................. 15 Irrigation ............................................................................................................. 16 Revolutions......................................................................................................... 17

A brief description of the major revolutions: ................................................................ 18 3.7. 3.8. 4. Agriculture: At A Glance ................................................................................... 18 India and world: comparison in agriculture........................................................ 20

Agri Business ............................................................................................................ 21 4.1. 4.2. 4.3. 4.4. 4.6. Fertilizer and pesticides ...................................................................................... 21 Food processing.................................................................................................. 24 Agriculture machinery........................................................................................ 25 Agriculture markets ............................................................................................ 27 Agriculture finance ............................................................................................. 28

5. 6.

Forest......................................................................................................................... 30 Agriculture Allied Activities..................................................................................... 31 6.1. 6.2. 6.3. 6.4. Horticulture......................................................................................................... 31 Poultry ................................................................................................................ 31 Dairy ................................................................................................................... 32 Sericulture........................................................................................................... 32

6.5. 6.6. 7. 8. 9.

Fish ..................................................................................................................... 33 Animal Husbandry.............................................................................................. 33

Land reforms ............................................................................................................. 35 NGOs......................................................................................................................... 37 Development schemes and indicators ....................................................................... 41 9.1. HDI index............................................................................................................... 42 9.2. IRDP....................................................................................................................... 43 9.3. Self Employment programs.................................................................................... 43 9.4. Wage Employment programs................................................................................. 44 9.5. Education................................................................................................................ 44 9.6. Health ..................................................................................................................... 46

10. 11. 12. 13. 14. 15.

Micro finance ......................................................................................................... 47 Cooperatives........................................................................................................... 48 Retail revolution and farmer .................................................................................. 50 ITC e-Choupal........................................................................................................ 52 WTO and Indian agriculture .................................................................................. 56 Important Institutions ............................................................................................. 58

Page | 2

1. Macro-economics
India is the second fastest growing major economy in the world, with a GDP growth rate of 9.4% for the fiscal year 2006–2007. The average for last three years is close to 9%. Beating Japan, the economy of India is expected to be the third largest in the world as estimated by purchasing power parity by the end of this fiscal year. When measured in Dollar terms, India is the twelfth largest in the world. Currently its GDP has more than US $1.0 trillion. But per capita income of the country is low at $3,800 at PPP and $735 at nominal1 due to country’s huge population. In the World Bank classified India as a low-income economy in 2006, but India will probably move into the lower middleincome country classification of per capita income by 2008. Indian foreign exchange reserves are increasing at rapid rate. During August, 2007, it was $230 billion. With the recent surge in inflows, no wonder by the time you will read this document it would be more than $250 billion. Following graph compares the growth rate of major economies2. 

      
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2006 estimates Source : International Monetary Fund, The Economist and the OECD

Page | 3

The PPP picture is brighter. Following graph tells that it’s not far when we will catch up china and America3.
GD P on P P P bas is 16 14 U S $ t r illion 12 10 8 6 4 2 0
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1.1. Tenth plan During tenth plan (2002-07) period India has seen the growth like never before. The table below is showing the sectoral growth rates and ICOR under Different Sectors of the economy

3

*Estimates by IMF: World economic outlook , September 2006

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Page | 4

The most noticeable is the increase in the savings and investment rate. If an economy wants to grow with the rate of 9% or more its investments rate must be more than 35%. Obviously China! Page | 5 .Tenth Five year Plan in a nutshell (2002-07) Macro-economics parameters of the tenth plan are given below. Can you guess which country has highest savings rate. Investment comes from savings so higher savings rate is prerequisite of higher growth.

http://planningcommission.pdf Page | 6 .Parameter Domestic Savings Rate (% of GDPmp) Current Account Deficit (% of GDPmp) Investment Rate(% of GDPmp) GDP Growth Rate (% per annum) Export Growth Rate(% per annum) 10th plan 26.8% of GDPmp) Investment Rate(% of 35% GDPmp) 4 Montek Singh Ahluwalia.5%.2. Growth rate for agriculture sector achieved during 10th plan: 1.in/plans/planrel/53rdndc/dchndc53. planning commission. Most of the policies and targets are already finalize and reports on it are available on the planning commission website. Eleventh plan Eleventh plan (2007-11) is under the finalization process.8% 1.9% 12% Post Plan 33% 3. 1.nic. Karnataka and Delhi were grown fastest with the growth rate in state GDP was more than 10%. Targets growth rate for agriculture sector4 is 4 %.4% NA Gujarat.6% 28% 7.8% Parameter Target for 11th plan GDP growth rate 9% Domestic Savings Rate (% 33% of GDPmp) Current Account Deficit (% 2. Bihar and Kerala were among the slowest with growth rate in state GDP was 6. Insurgency hit north eastern (NE) states were worst performers with growth rate hovering at the lower 5%.1% 36% 9.

nic. the projections for sectoral growth and Import-Export growth rates are given. Committee headed by K C Pant has prepared the vision document in 2002.In the table below. country has prepared a vision for 2020. 1.3. Page | 7 . Few high lights are given below.in/plans/planrel/pl_vsn2020. Vision 2020 Inspired with president Kalam. Vision 2020 at glance5 5 Report of the committee on vision http://planningcommission.pdf 2020 planning commission.

Page | 8 .

The data on forest cover varies as different agencies have different definition of what constitute a forest Page | 9 . Andhra Pradesh.2. Parameter Total Area Land Area Percentage of World Area Forest Area6 Areable land Irrigated Area Rain irrigated Area Cereals production 2. vegetables. Tamil Nadu.Land – Soils Soil States Alluvial soils cover about Found in Indo-Gangetic 24% of the total land. India which is 7th largest country has 2nd largest cultivable land and largest irrigated land in the world. sugarcane. 6 Useful in production of These soils are considered very good for the production of wheat. etc. pulses.4 % of the total area) 162 million hectare (43% of Total) 55 million hectares (40% of total Arable land) 60% 231 in year 2001 World Rank 7th 7th 7th 2nd (USA 1st) 1st 3rd behind China. in the valleys of Narmada and Tapti in Madhya Pradesh and the Cauvery in Tamil Nadu. potato. These are also considered good for cultivation of cotton. etc. rice other cereals. Karnataka.1. Madhya Pradesh. Land Following tables shows some facts about the Indian land. cereals. Haryana. Soil type Indian value 329 million hectares 297 million hectares 2. Plains (Punjab. Gujarat. UP).42 per cent 63 million hectares (19. USA India. Source: Data as of year 1999. planning commission website. pulses. oil seeds. oil seeds. Black soils Found in the States of Maharashtra. Uttar Pradesh and Rajasthan. citrus fruits.

Kerala.72 million hectares) exist as wastelands in India7. 2. Pradesh. which account for 20. Wastelands statistics indicate that about 63.Red soils Found in Tamil Nadu.17% of the total geographical area (328. ragi (millet). Wasteland can result from inherent / imposed disabilities such as by location. Madhya Pradesh.000 scale wasteland maps prepared from Landsat Thematic Mapper/IRS LISS II/III Data Page | 10 .85 million hectares.2. These are most suited for Karnataka. environment. Andhra and vegetable cultivation. *XOOLHG DQGRU 5DYLQRXV ODQG. /DQG ZLWK RU ZLWKRXW VFUXE :DWHUORJJHG DQG 0DUVK\ ODQG /DQG DIIHFWHG E\ VDOLQLW\DONDOLQLW\FRDVWDO  LQODQG 8QGHU XWLOL]HGGHJUDGHG QRWLILHG IRUHVW ODQG    'HJUDGHG SDVWXUHVJUD]LQJ ODQGHWF FRPHV XQGHUWKHFDWHJRU\RIZDVWHODQG                   7 Source: 1:50. Waste land Wasteland is a degraded land which does not fulfill their life sustaining potential. rice. chemical and physical properties of the soil or financial or management constraints. Bihar and West Bengal. tobacco Maharashtra.

7% 8.5% .82 176.0% 9.1 43.05 124.5% of GDP in 2005.78 522 1380 1626 1707 Growth in Agriculture Annual average Growth Rate Five Year Plan and Years Growth rate of agriculture and allied sectors Eight five year Plan 4.07 Production (Million Tonne) Yield (Kg.6% 9.84 121.3 Growth Rates Growth rates GDP Agriculture Industrial Sector Service sector (Percent) Overall GDP Growth Rate 6.07 2005-06 2. contributes 20-21% of total exports. 14.1 2003-04 10 2004-05 .7% of the total export earnings.4 NA 1950-51 1990-91 2000-01 2006-07* 50.9 7.39 196.7 Ninth five year Plan 2.8% Page | 11 .81 211.5-8 2004-05 7.5 8. Production and Yield of Food grains Along with Percentage Coverage under Irrigation in India Year Area (Million Hectare) 97.5 6./Hectare) % Coverage under Irrigation 18.32 127. Agriculture The Indian Agricultural sector provides employment to about 65% of the labour force. Area.3. and raw materials to several industries.9% 2005-06 8.2% 2. accounts for 18.7 5.1 35.3% 9.

Rajasthan.P. and Haryana. Kerala and tamil nadu. U. U. Rajasthan. U. Page | 12 . Punjab. U. Gujarat. Assam and Kashmir. Bihar and Orissa Tamil Nadu.P. U.P. Andhra Pradesh and Haryana. Madhya Pradesh. Assam. Orissa. Andhra Pradesh. Karnataka.. Karnataka and Kerala Karnataka. Bihar. Andhra Pradesh and tamil Nadu West Bengal. Maharashtra.P. Tamil Nadu. Punjab.P.P and Madhya Pradesh Tamil Nadu. Gujarat. Punjab and Haryana. Bengal and Gujarat U. Karnartaka and Gujarat. Gujarat. Maharashtra. Maharashtra.P..Food Crops Crop Rice Wheat Millets Barley Maize Pulses Sugarcane Area West Bengal. bihar. Haryana and U.. Maharashtra and Gujarat.. West Bengal..P. Bihar. U. Maharashtra.. Punjab. West Bengal. Kerala. Non-Food crops or Cash crops Tea Coffee Oilseeds Tobacco Cotton Jut Rubber Silk Assam. Maharashtra.

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66 2.79.5 .54 2. 8 39 Crop Rice Wheat Maize 8 9 6RXUFH0LQLVWU\RI$JULFXOWXUH*RYWRI.45 12.04 14.42 15.0 12.53 75. Govt of India.35 87. 6 8 .5 75.75. 5DSHVHHG  0XVWDUG  7KLUG &KLQD&DQDGD  6HFRQG &KLQD 1RWH 8QRIILFLDOILJXUH  Food grains Production in Millions tones Following table shows the Crop-wise Production of Food Grains in Kharif/Rabi9 Crop-wise Production of Food Grains in Kharif/Rabi Season in India (2004-2005 and 2005-2006) (Million Tonnes) 2004-05 2005 -06 Kharif Rab Tot Khar Rabi Tot i al if al 79.4 93. Ministry of Agriculture.5 79.QGLD Source: Department of Agriculture and Cooperation. Page | 13 . 53 12.85 15.

3.Pulses Total Coarse Cereals Total Pulses Total foodgrains Cotton* Jute ** Sugarcane (Cane) 6.2 - Note : * : Cotton lakh bales of 170 kg each ** : Jute and Mesta lakh bales of 180 kg.2. Commercial crops &URS6HDVRQZLVH$GYDQFH(VWLPDWHVRI &RPPHUFLDO&URSV3URGXFWLRQLQ.3 28.QGLD DQG)LUVW(VWLPDWH.5 113.2 15.78 7.9 2 165 101.37 105.8 15 106 Continued in Kharif and Rabi 111. each. 3 - 225.69 5. 1 150 106 270 0 109.83 9. 52 15.2 237 . 15 215 165 101 .0 8 - 36.1 9.

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The Rabi season is during the winter months. when agricultural activities take place only in the irrigated areas. Cotton. Bajra. agricultural activities take place both in rain-fed areas and irrigated areas. Cropping season The Indian crops can be divided into three groups in which two are major namely Kharif & RabiKharif crop. Kharif crop includes Rice (Paddy). watermelon. During this season. Cucumber.3 The Agri-export and EXIM policy 2004-09 emphasized the importance of agricultural exports and announced the following measures to boost the agri-ecports: Page | 15 . Zayad Crop.4.9 206. These crops include Wheat. Rapeseed. and Mustard. Rabi crops. Zayad crops include Melon. Vegetables. Kharif and Rabi season comparison: Comparison of major food grains and total production of rice and wheat.In some parts of the country a crop is sown during March to June every year.3.4 102.03 103. Grains Rice Wheat Rabi (all food grains) Kharif (all food grains) Total (all food grains) 3. and Groundnut. The comparison can also be seen in the table shown in the sections of food grains and commercial crops. Barley.The Kharif season is during the southwest monsoon (July-October). Moong. Tur.8 73.     1RWH/DNK%DOHVRINJVHDFK 3. Jowar. Sugarcane. This crop is sown in October last and harvested in March/April every year. Jowar. Gram. Agriculture exports 2004-05 in million tonnes 87. Soyabean. Maize. Seasamum. Urad etc.

privatization and globalization) on the agri-exports from the country. and their value added products have been introduced. Capital goods imported under EPCG shall be permitted to be installed anywhere in the APZ.10 ([SRUWVRI$JULFXOWXUH&RPPRGLWLHVYLVDYLV 7RWDO1DWLRQDO([SRUWVIURP. vegetables. Following tables shows the agriculture exports from india and its comparison with the total exports of the country.QGLD WR. The figures of the year 1991 are given to highlight the fact that what is the impact of LPG (liberalization. Funds shall be earmarked under ASIDE ( Assistance to states for Infrastructure Development of Export) for the development nof Agri-Export zones.• • • A new scheme called the Vishesh Krishi Upaj Yojana ( Special Agricultural Produce Scheme ) for promoting the export of fruits. flowers minor forest produce.

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Among the states. Bihar. The states of Bihar.5.. The ultimate potential under major & medium irrigation in the eastern states (except West Bengal). M. i. Six states.P. U. and Assam have achieved less than 50% of the ultimate potential. the country has invested a huge amount of capital in the major and the medium irrigation projects. Haryana. Karnataka. Orissa. three have already achieved 70% or more of the ultimate irrigation potential with Tamilnadu recording 100% achievement. of India. During the post independence period. the achievement would be 56% each..P. and Orissa put together works out to 10 Source: Ministry of Agriculture. i. Jammu & Kashmir. Gujarat. and West Bengal are in the range of 63% to 71%.e. <HDU $JULFXOWXUH 7RWDO1DWLRQDO ([SRUWV ([SRUWV $JULFXOWXUH([SRUWVWR7RWDO1DWLRQDO ([SRUWV            3. Govt. whereas in U. M.P.P.e. followed by Punjab and Rajasthan at 84% and 74% respectively. Page | 16 . Irrigation sector has been fundamental to India’s economic development and poverty alleviation since 25% of India’s Gross Domestic Product (GDP) and 65% of employment is based on agriculture. Irrigation India is a monsoon dependent country for its water resources. and Maharashtra.

has now reached about 100 mha.89 182. and as a result food production has increased from 50 m tonnes (1951) to about 208 m tonnes (2005).76 20. Area wise it is necessary to provide irrigation to at least 130 mha for food crops alone and in an area of 160 mha for all crops to be able to meet the demands of the country in 2050 AD and ensure food security. Norman Borlaug and Dr. Revolutions Revolutions in Indian Economy Revolutions Green Yellow White Area Agriculture Oil Seeds Milk Key Person Dr.71 15.bout 50% of the total ultimate potential of the country.7 billion by 2050 AD and that would require about 450 m tons of food grain annually at the required level of food consumption. Following table give the data about the shown and irrigated land in the country. M. Sown and Irrigated Area in India (Million Hectare) Net Sown Area Net Gross Area Sown more Irrigated Sown Area than once * Area 131. Irrigation potential which stood at 22.6. Sam Pitroda Varghese Kurien Page | 17 .56 65.81 21.71 3.75 51 199192 141.87 55. The projections for future population and food requirement of the country indicate that the population of India may stabilize around 1.S.14 40.68 76.24 190.1 Gross Irrigated Area 22.63 200304* 140.6 to 1. It also depicts the trend in the increase of net shown area and irrigated area.82 Year 1950118.88 Area Irrigated more than once ** 1.Swaminathan.61 49.64 13.6 mha in 1950-1951.85 49.

and their social scientists had decided that the technological development of agriculture was important to the future of India . It has had major social and ecological impacts.8%. making modern management and technology available to members. The Foundation and Indian government collaborated to import a huge amount of wheat seed from CIMMYT 3. which procure milk and provide inputs and services. placing control of the resources they create in their own hands. At the same time C.but achived was merely 1. Agriculture: At A Glance Agriculture growth rate target for Tenth Plan (2002-2007) is 4%.[1] The Green Revolution in agriculture helped food production to keep pace with worldwide population growth. The Office of Special Studies in Mexico became an informal international research institution in 1959. ¾ Page | 18 . target for 11th plan is again 4%. along with the Ford Foundation and other major agencies. extension. and in 1963 it formally became CIMMYT (The International Maize and Wheat Improvement Center).Subramaniam. reducing seasonal and regional price variations while ensuring that the producer gets a major share of the price consumers pay. A National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities. The second nation to which the Green Revolution spread was India. The bedrock of Operation Flood has been village milk producers' cooperatives. the former Indian Minister. This transformation occurred as the result of programs of agricultural research. instigated and largely funded by the Rockefeller Foundation.7. and infrastructural development. The Ford Foundation had a presence in the nation. Operation Flood's objectives included : * Increase milk production ("a flood of milk") * Augment rural incomes * Fair prices for consumers The Green Revolution is a term used to describe the worldwide transformation of agriculture that led to significant increases in agricultural production between the 1940s and 1960s.Blue Pink Brown Grey Black Fish Shrimp Masaaley Wool & Poultry Crude Oil - A brief description of the major revolutions: Operation Flood (white Revolution) has helped dairy farmers direct their own development.

India is the largest producer. India’s share in the world production of mango is about 54%. If there is danger of loss to any crop due to adverse weather conditions or diseases. Kerela is the main rubber producing state. The Horticulture sector contributed 28% of GDP in agriculture. is the highest wheat producing state. Punjab and Haryana hold 2nd & 3rd positions respectively. India is the largest producer & consumer of tea in the world and accounts for around 27% of world production and 13% of world trade. Brazil closely follow us and many times its production is more than ours. India occupies the first rank in banana production of 1. U. Animal husbandry output constitutes about 30% of the country’s agriculture output. India holds first position in the world in the production of sugarcane and sugar. second in onion and third in cabbage in the world. India ranked first in production of vegetable in the world. Thus. consumer & exporter of cashew in the world. Karnataka. India produces 45% of the global production of cashew. which produces 90% of the rubber in the country and accounts for over 85% of the area under cultivation. India ranks sixth in the world coffee production. Brazil is also largest producer of Ethanol. Crop Rotation. India is the third highest tobacco producing country in the world.P & Punjab are 2nd & 3rd respectively.P. U. this practice increases the over all yield and ensures maximum use of the soil and nutrients. Besides India is the second largest producer of fruits in the world. which is the largest producer of coffee in the country. India contributes about 13% to the world vegetable production and occupies first rank in the production of Cauliflower. The highest pulses & Soyabean producing state is Madhya Pradesh. processor.4% of country’s workforce and is the single largest private sector occupation. India is the largest Milk producing country in the world.¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ Agriculture sector provides employment to 58. The highest rice producing State is West Bengal. Rice is the main food crop in India. Cashew nuts assume an important place in the Indian Economy. there are some better chances for the other crop in the field if the system of Page | 19 .16 Million tones. accounts for 56. The highest cereals producing state is Maharashtra.5% of total coffee production in India.The practice of growing more than one crop simultaneously in a single field in a single season gives additional harvest.

3. near the help of organic manures and fertilizer. The two and three years rotation is also adopted in the country and is as follows: First Year Bajra & Pea Jowar & Arhar Kharif Rabi Sugar-cane Sugar-cane Second Year Green manuring & Wheat Cotton& Peas Green manuring Wheat Third Year Cotton Preparation for Sugar-cane Sugar cane is generally sown in three years rotation. The areas. In these areas the fertility of the fields is maintained by adding manure with the soil. late potato and pumpkin.8. In such areas three to four crops in a year are taken such as maize. 11 FAO estimates Page | 20 . early potato.multiple cropping is adopted. India and world: comparison in agriculture Leading production countries and India’s rank in the world11 Crop Paddy Wheat Maize Sugarcane Tobacco Milk Fruits and vegetable Live stock Leader China China USA Brazil China India China India India’s Rank 2nd 2nd 7th 2nd 2nd 1st 2nd 1st India is leading producer of Banana and Mango also.

Phosphorus (P). The agricultural food industry also assumes significance owing to India's sizable agrarian economy. The Government of India has also approved proposals for joint ventures. foreign collaborations. • • • • India is the 3rd largest producer and consumer after “China” and “States” with 17.000 mt in 1951-52 to 203. which may be either liquid or granular.4. 9100 crores (US $ 18.3 % in 2006. industrial licenses and 100% export oriented units envisaging an investment of Rs. adequacy in “Phosphates” but for “Potash” depended on imports.ventures / foreign collaborations. Fertilizer and pesticides A fertilizer is a Organic or inorganic plant foods. Annual consumption increased from 70.250000 crores (US $ 69. 12 13 Davis and Goldberg.4 lakh mt in 05-06.80000 crores (US $ 22. Agribusiness Brief: As per recent studies the turnover of the total food market is approximately Rs. Both in terms of foreign investment and number of joint. The other attractive features of the Indian agro industry that have the capacity to lure foreigners with promising benefits are the deep sea fishing. However. 14 Source: http://www. milk and milk products. Per hectare consumption increased from less than 1 kg in 1951-52 to 106 kg in 05-06.1. used to amend the soil in order to improve the quality or quantity of plant growth Our farm needs 18 different elements to survive but most of them are already provided to the farm from the soil and natural surroundings. Agri Business Definition12: Agribusiness is sum total of all the opereations involved in a) manufacturing and distribution of farm supplies.19100 crores (US $ 4.2 billion). But agriculture and related agro industry which inculedes food processing.2 Billion). Achieved self sufficiency in “Nitrogenous” fertilizers production. The idea ratio of N: P: K fertilizer is 4:2:1. b) production activities on the farm. and Potassium(K) need to be added to farm in the form of fertilizer to increase productivity in total. which accounts for over 35% of GDP13 and employs around 65 per cent of the population. three primary elementsNitrogen (N). meat and poultry segments14.80 billion) out of which foreign investment is over Rs. c) and the storage processing and distribution of the farm commodities and the items made from them. Harvard Business School Only agriculture and allied activities account for 18. the consumer food segment has the top priority.7 million tonnes of installed capacity.com/agro-industry-overview/ Page | 21 . aqua culture.4 billion) out of which value-added food products comprise Rs. warehousing and export accounts for close to 35% of the GDP. 4.agriculture-industry-india.

• Brands have got lesser important in fertilizer market • Fertilizers are distributed through three main channels institutional channel. • At National level 30 % farmers do not use it regularly Distribution: Availability of fertilizer is the most important in its sell.4 kg per hectare consumption. small farmers use less. • Punjab is highest user of fertilizer less then one percent farmers do not use it regularly. company outlets and private dealers. • Share of private dealers is 65 % of total fertilizer distribution Types of Fertilizers & their composition Nitrogenous Fertilizers Urea Ammoniam Sulphate (As) Ammoniam Chloride (ACl) Calcium Ammoniam Nitrate (CAN) Phosphatic & Potassic Fertilisers Single Super Phosphate (SSP) Muriate of Potash (MOP) Sulphate of Potash (SOP) Di-ammonium Phosphate (DAP) Rock Phosphate (RP) 16% P2O5 60%K2O 48%K2O 18% N– 46%P2O5 16 . • The use of fertilizer is varying from state to state. • The landholding above 5 acres or 2-5 acres farmer use it more almost 70% of total consumption.• • Punjab tops with 184 kg per hectare and Orissa at bottom with 41. Still we are behind even from country like “Pakistan” and “Bangladesh”. Nutrients determine the purchasing decision.20% P2O5 46%N 21%N 26%N 25%N Page | 22 . Fertilizer Use: Large and medium farmers use fertilizer mostly.

73 100 Present share P 7.59 Joint Ventures: due to the high cost of raw materials Indian fertilizer producers are eyes the countries where natural gas. JV in UAE 2. It has created a need for countries to create joint ventures outside India.65 30. • After August 1992.98 31. Following is the list of such ventures. Government Policy: It has been highly Government regulated production and marketing sector.13 35. JV in Tunisia Page | 23 .33 17. JV with Oman Under Implementation 1. JV in Jordan 3. Ltd. JV with Morocco 4. IFFCO and Southern Petroche. Decision about setting up of National Bio-fertilizer Development Cost (NBDC) and six regional bio-fertilizers centers is taken in ninth five year plan. Ind.69 53. except Urea all P and K fertilizers were decontrolled. a main raw material and fuel.27 62.27 44.13 56.08 100 Sector Public sector Cooperatives sector Private sector Total N 34. especially in Middle East and North Africa. Joint Ventures Abroad 1. now manufacturers of Urea can market up to 50% of production. is cheap.0 26. • It has been regulated under Essential Commodities Act.61 P 4.94 120. 2.Bio-fertilizers are environment friendly (free of inorganic chemicals) and cheaper source of plant nutrients. JV in Egypt 3. Installed manufacturing capacity and share is given in the next table Capacity Capacity Percent share N 29. • New Fertilizer Policy came in April 2003.

fisheries.13 2000-01 1036. Govt. This would. activating domestic market with focus on exports.2.53 2002-03 510. of India Page | 24 .) 15 Source : Ministry of Food Processing Industries.4. high protein foods etc. milk and milk products. require policies and plans for improvement of food processing infrastructure including up gradation of technology & enforcement of quality standards. however. It was one of the earliest sector to be privatized. Soya-based products. Inflow of Foreign Direct Investment (FDI) in Food Processing Industries (FPI) Sector in India15 (1999-2000 to 2006-2007) (Rs.12 2001-02 176. A strong and dynamic food processing sector plays a significant role in diversification of agricultural activities. alcoholic beverages. in Crore) Year FDI Inflow Received in FPI Sector 444. grain processing and other consumer product groups like confectionery. plantation. mineral water. promoting investment in food processing. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing. The figures for FDI during the last few years are given below.85 2003-04 174.94 2005-06 222 2006-07 (Apr-Dec. meat and poultry. improving value addition opportunities and creating surplus for export of agro-food products. The food processing was thought to be one of the most promosing sector to attract FDI.06 1999-00 198.08 2004-05 182. India's food processing sector covers fruit and vegetables. Food processing India is the world's second largest producer of food next to China. and has the potential of being the biggest with the food and agricultural sector. chocolates and cocoa products.

) Rice Walnuts Marine Products Total 1996-97 473. etc.93 4121. Beverages. Page | 25 . In the year 2006. Agriculture machinery Mechanization refers to injection of machinery between man and materials handled by them. There is scope of mechanization in every aspect of production agriculture. with the sale of 3. when compared to other developed economies across the world. Items Processed Fruits and Vegetables Animal Products Other Processed Food (Guar Gum. AP. The opportunities still are huge considering the low farm mechanization levels in the country. Key concern for the industry is its dependence on agricultural income in hands of farmers and the state of monsoon.9 1780.92 200102 1100. the industry is back on a growth path. The overcapacity. It clearly shows that north and central India has the highest number of tractor sales. Punjab. increasingly good quality and lower price provides a good export opportunity UP.3. including 3 MNCs. Rajasthan and Maharashtra are the biggest market for the tractors. State wise sales figures are provided in the annexure.52 lakh tractors India is already the largest market by volume and second largest by value.77 803.The export of the processed food items are given in the next table.98 5957. post harvest and agro processing. After a downturn during last 3-4 years. Ground nut. It is not a surprise that Indian rural transport and tractor industry is one of the largest in the world.35 78. MP.1 13630 3750 100 6000 14600 4. which we believe would sustain in coming years as well. Bihar.1 2002-03 (Targets) 1400 1750 1600 3172.59 1835.36 10485.6 1500.92 3173 117. Today industry comprises of 14 players. milled Products. Alcohol.

Farmtrac M&M. HMT Export potential on Indian farm equipment is immense. Used in southern and western region due to hard soil conditions. With overcapacity in country.263146* 13375* 2006-07 (Upto 31 Dec. dams and civil construction projects.) Sale (No. Page | 26 . Eicher. 06) 16 Source : Ministry of Agriculture.Various market segments for tractors and dominant players the respective segments Segments Horse Power (HP) 21-30 Market Share (%) 23-25 Suitability Dominant Player(s) Small Tractors Medium Tractors Large Tractors Large Tractors 31-40 53-56 41-50 17 >50 Hp 04-Jun Tractors suited for soft soil conditions and preferred in well irrigated northern states. that is also known as the hobby or consumer segment. M&M M&M. good quality. especially in Punjab and Haryana. of India.) Tractors Power Tractors Power Tillers Tillers 139233 6228 139831 6316 1990-91 292908 22303 2005-06 . Used in Turnkey project sites such as building sites for canals. with a 5% share of the 15-90 horse power (HP) segment. Production and Sale of Tractors and Power Tillers in India16 (1990-91 to 2006-2007) Year Production (No. Rich farmers with larger land holdings. Farmtrac John Deere. One prime example is Mahindra. Following tables shows the production and sales of tractors and power tillers. lower price India is poised to become a big exporter of farm equipment. Mahindra has already emerged as the fourth-largest tractor brand in the US. Govt..

Building up of buffer stocks to meet the emergency situations and to safeguard against the price fluctuations. Import of the commodity Page | 27 . both functional and institutional. Agricultural marketing is a State subject. An efficient system of marketing needs to be evolved so that the agricultural productivity can be improved. One of the main problems that have been encountered by the Indian farmers is that of marketing their agricultural produce at the right place and time and for the right compensation. Buffer stock 3. the prices of agricultural commodities have a major influence on the overall price structure. based on technical and economic consideration. Minimum Support Price 2. Price stability is of utmost importance for agriculture. A decline in the agricultural prices will result in a great fall in the income of the farmers. exploit the poor and uneducated farmers.4. the government adopts three measures: 1. the sector witnessed a more stable and meaningful price and distribution policy.4. In order to stabilize the agricultural prices. The middlemen. The following measures can be considered for improving the agricultural marketing mechanism in India: • • • Establishment of regulated markets. Agriculture markets Agricultural Marketing is a process which starts with a decision to produce a saleable farm product and involves all aspects of market structure or system. Running a Public Distriburtion System(PDS) for the benefit of the low income consumers. The main thrust areas of the Agricultural Price Policy were: • • • • Announcement of minimum support prices of major food grains. who buy their produce at low rates. Introduction of Co-operative marketing structure. Agricultural Price Policy.In an agrarian economy like India. After the Agricultural Price Commission was set up in 1965. Fixation of procurement prices for purchasing a part of the marketable surplus at below market prices. Sudden and unwarned fluctuations in the prices of the agricultural products lead to a corresponding destabilizing effect on the prices of other commodities as well. Provision of storage and warehousing facilities.

6. quality testing labs. 4. are unable to go in for improved seeds and manures or to introduce better methods or techniques. etc. manures and fertilizers or for meeting labour charges. (&) medium-term (from 15 months up to 5 years) and (c) long-term (above 5 years). It means that farmer gets only 25-40% of the retail price. Safal market created by NDDB at the outskirts of the Bangalore is state of the art facility. Annual and occassional fairs and Haat. electronic accounting. These are expected to be repaid after the harvest. 3. even though otherwise willing. Today India has 7000-plus APMC (agriculture produce and marketing committee) mandi for farm commodities. Hundreds of crore collected in mandi taxes rarely be reinvested in the distribution infrastructure back. Terminal markets provide all facilities like grading and sorting. Because of inadequate financial resources and absence of timely credit facilities at reasonable rates. Page | 28 . pumping plants and other improved implements. Agriculture finance Agricultural production in this country depends upon millions of small farmers.e.Agricultural markets: The agricultural markets in India can be broadly classified into the following categories: 1. Short-term loans are required for purchasing seeds. Country’s main terminal market is set up in Chandigarh and 6 other are in pipe line. It is the intensity of their effort and the efficiency of their technique that will help in raising yields per acre. above 5 years) are classified as long-term loans. Types of Financing: Finance required for production can be divided broadly into : (a) short-term (for periods up to 15 months) . cold storage and important banking facilities. All property transactions have to be made on official. Wholesale markets. All other agricultural income is fully exempt from tax. Medium-term loans are granted for purposes such as sinking of wells. and registration fees have to be paid to register transactions. many of the farmers. Retail markets. Daily and weekly mandis in the rural areas. From an example from Delhi mandi. Loans repayable over a longer period (i. etc. Works of minor irrigation like wells owned by the cultivators either get into disuse or are not fully utilized for want of capital. 4. Mandi works through a series of middleman or commission agents which have a vice like grip on the trade of every farm commodity. stamped forms. Agricultural property was subject to stamp duties and registration fees. 60-75% of the paid by the customers is cornered by these middlemen. Agricultural taxation: Agricultural tax is being collected as a federal tax. purchase of bullocks. but it is being levied only on income from plantations. 2.

Private agencies: (a) Money lenders and landlords . NABARD: NABARD. research. The limit of insurance cover was fixed at Rs. the farmers will themselves deal with the insurance provider directly and the government will not provide any subsidiary directly to the farmers.nic. Both premium and claims were shared between the central and the state governments in the ratio of 4:1. (b) Commercial banks. Crop Insurance Scheme: the United Front government on an experimental basis in selected districts during the Rabi 1997-98 season introduced The Crop Insurance scheme. It operates throughout the country through its 16 regional offices and 3 Sub-offices. purchase of the heavier machines. Moneylenders have exploited the farmers and small landowners. NABARD maintains two funds. 1982.html Page | 29 . NABARD is responsible for the development.in/plans/planrel/fiveyr/1st/1planch16. operational matters. With increased institutional intervention in the rural finance sector. this exploitation has reduced considerably and the farmers are no longer at the mercy of the whimsical moneylenders for the satisfaction of their financial requirements. planning. Primary sources of agricultural credit are: The following agencies provide finance to the cultivators :— 1. NABARD has taken over the functions of the Agricultural finance department of RBI and the Agricultural Refinance and Development Corporation (ARDC). Both the Central and the State governments contribute to these funds. 10000 irrespective of the losses incurred by them. monitoring. was set up on July1. which is considered to be the leading institution in the agricultural sector. training and consultancy in relation to rural credit. coordination. making permanent improvements and increasing the size of the holding17. Since its inception. viz National Rural Credit (Long term operations) and the National Rural Credit (Stabilization) Fund.These are utilised for payment of old debts. 17 Planning commission of India: http://planningcommission. Public or semi-public agencies: (a) The State (b) Co-operative societies (c) Regional Rural banks Co-operatives: Commercial and regional rural banks are institutional lenders whereas moneylenders which operate in the villages and talukas are non-institutional lenders. 2. Under the new scheme.

such as.3% in the year 1999. The main objective of the scheme is to protect the farmers against losses suffered by them due to crop failure on account of natural calamities. pest/diseases etc.76 per cent is the open forest (10-40per cent crown density). 5. Forest The overall forest cover in India is around 19. The estimate is done by the planning commission of India.51 m ha 7.73 m ha 11. The General Insurance Corporation (GIC) on behalf of the Ministry of Agriculture implements this scheme.National Agricultural Insurance Scheme (NAIS): The National Agricultural Insurance Scheme (NAIS) was introduced in the country from the1999-2000 Rabi season.49 m ha 0. which was in operation in the country since1985. replacing the Comprehensive Crop Insurance Scheme (CCIS).15% Page | 30 . flood.76 % Mangroves 0.48 per cent of the total geographical area is dense forest (over 40 per cent crown density) and 7.48% Open forest 25. fire. One would find different figure from different sources precisely because different agencies have different definition of what constitute a forest. The latest assessment on forest cover (FSI 1999) indicates that 11. Dense forest 37. cyclone. hailstorm. drought.

Agriculture Allied Activities Following are the major agriculture allied activities. berries. diseases. shrubs. that of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. As a result. plant biochemistry. Meat (Thousand Tons) 975 18 Source : Annual Report 2002-03. Horticulture involves working in the field of plan.1. flowers. These are: • Floriculture: production and marketing of floral crops • Landscape Horticulture: production. Poultry Poultry is one of the fastest growing segments of the agricultural sector in India today. and turf.5 to 2 percent per annum. Meat in India18 (2002) Egg Year 2002 (Million) 35000 Broiler (Million) 800 Poultry. vegetables. 6. Production of Egg. Ministry of Food Processing Industries Page | 31 . quality. and transportation of fruits. Horticulture Horticulture refers to the practice of growing and cultivating garden plants. Country produced 46 billion eggs in 2005-06. 6. It helps in the improvement of crop yield. and environmental stresses. and the storage.6. crop production. nuts. India is now the world's fifth largest egg producer and the eighteenth largest producer of broilers. Horticulture has 5 primary areas of study. nutritional value. and resistance to insects. marketing and maintenance of landscape plants • Olericulture: production and marketing of vegetables • Pomology: production and marketing of fruits • Post harvest Physiology: maintenance of quality and preventing spoilage of horticulture crops. plant breeding and genetic engineering. Broiler & Poultry. plant physiology. trees.2. While the production of agricultural crops has been rising at a rate of 1. processing.

The high cost of production in Japan presents bug opportunity for Indian silk.3. Recent important news about the ban in the export of SMP and other milk product to cool the domestic prices must be kept in mind. 6. Although there are several commercial species olf silkworms. Bombyx mori is the most widely used and intensively studied. together manufacturing more than 50% of the world production each year.6.4. mori occurred about 2. The details about the cattle are given in animal husbandry section. China and Japan are the two main producers. Dairy Milk and Dairy Products in India Production/Per Capita Availability of Milk in India Year 1950-51 1991-92 2001-02 2006-07** Milk Production (Million Tonne) 17 55.C.7 84. To know more about the operation flood please refer to the information given in the section of revolutions in India. which is close to 20% of total mil produced in the country. According to Chinese records. Indian silk is yet to achieve the reputation of high quality silk. Today. Page | 32 .4 100 Per Capita Availability (gm. Negotiations are on and ban may be lift by the end of Oct. 2007./day) 124 178 225 245 Procurement of Milk by Co-operative Sector in India during the year 2005-06 was 214 lakh Kg.700 B. Sericulture It is the rearing of silkworms for the production of raw silk. the discovery of silk production from B.

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Animal husbandry constitutes about 30% of the total agricultural output of the country.QGLD Source : Ministry of Agriculture.16 37. India has become the largest 19 20 6RXUFH0LQLVWU\RI7H[WLOH*RYWRI. India has 27 indigenous breeds of cattle and 7 breeds of buffaloes.47 17. cod and others. A facility that releases juvenile fish into the wild for recreational fishing or to supplement a species' natural numbers is generally referred to as a fish hatchery. India has the largest livestock population of the world. Fish Production of Marine and Inland in India20 (1991-1992 to 2005-2006) (in lakh Tones) Year Marine Inland Total 24. Fish Fish Production of Marine and Inland in India: Country produced 28 lakh tonnes marine and 37.71 2005-06 6. usually for food.5. Page | 33 . It accounts for 60% of the world’s buffalo population and 15% of the cattle population.QFOXGLQJ1RQ0XOEHUU\ 1RWH 3URYLVLRQDO 6.6. Animal Husbandry Animal Husbandry: Animal husbandry is the agricultural practice of breeding and raising livestock. <HDU    0XOEHUU\   7DVDU   (UL   0XJD   7RWDO   1RWH.1 41. tilapia. Govt. of India. Fish species raised by fish farms include salmon.57 1991-92 28. As a result of these efforts.7 lakh tonnes) in 2005-06 Pisciculture: It involves raising fish commercially in tanks or enclosures.5 lakh tonnes inland fishes (total 65. catfish.55 65.

producer of milk in the world. 50 % are in small towns/villages 11% of rural women use lipstick Source: MART 21 Source : Ministry of Agriculture. Govt. Following table gives the details of Indian livestock as per the animal census conducted in 2003. Page | 34 . of India. Results of Livestock Census in India21 -2003 (Number in ' 000) Category Total cattle Total buffaloes Total yaks Total Bovine Total Sheep Total Goats Total horses & ponies Total camels Total Livestock1 Total Poultry Rural 175651 91930 60 267888 57992 117479 680 618 456768 449139 Urban 9530 5993 4 15557.4 3478 6878 71 14 28233.5 39873 Total 185181 97922 65 283446 61469 124358 751 632 485002 489012 You know: Rural India buys -------------------46% of soft drinks sold 49% of motor cycles 59% of cigarettes 18 million TV sets are in rural India Of 2 million BSNL mobile connections.

Page | 35 . Every registered holder was recognized as its proprietor and he could sell or transfer the land.e. Inamdari. Jagirdari. It is said that the British introduced Zamindari system to achieve two objectives. individual landholder.e. There was no proper revenue record under the British rule and the situation was like that even at the time of independence. etc. ii. iii. i. it created a class of people who would remain loyal to the British ruler in the country. In many cases revenue collectors were raised to the status of landowners. Secondly.e. First.This system was introduced by Lord Cornwallis in Bengal in 1973. Of these three systems. Zamindars. The system took were various forms such as Zamindari. the members of which were jointly and severally responsible for the payment of land revenue. The landholder was also allowed to sublet his land. It was a better system as compared to Zamindari or Mahalwari and similar other forms of tenure. there were three types of land tenure systems in India. Rayatwari: Sir Thomas Munro first in Madras state and then in Bombay State introduced it. Zamindari. tillers of the soil were exploited by way of exorbitant rents. Mahalwari: under this system.7. In this system. He was assured of permanent tenure as long as he paid the land revenue. Land revenue was fixed for the whole village and the village headman (Lumberdar) collected it for which he received ‘Panchatra’ i. the village communities held the village lands jointly. There were no incentives for them to improve the land or to use better cultivation practices. Land reforms Historical perspectiveUnder the British rule. there used to be number of intermediaries between the Zamindars and the actual tillers of the soil. There were many other social evils of the system. Under this system. 5 per cent as commission. it helped in regular collection of land revenue from a few persons i. In this system. there was a direct relationship between Government and the tenant or Rayat i. the Zamindari system was the most widely prevalent and had an influence on the other two systems also.

the state formulated legislation for the abolition of such tenures by 1955. 2. the surplus land would be distributed among the landless farmers.Agricultural legislation: During the post independence period. Eviction of the tenant cannot take place Fixation of rent. Right to purchase land 3. which was one fifth to one sixth of the gross produce. These intermediary interests lacked enthusiasm in the development of agriculture through sustained investment. It was decided that on the completion of implementation of this legislation. This resulted in the stagnation of agriculture. in this system also some tenancy prevailed and the lands were leased out to the actual cultivators. Tenancy reforms: The major part of the tenurial system in India was Rayatwari. Page | 36 . To enable surplus land to be distributed. Bhoodan and Gramdan Act: The Bhoodan movement started in early 1950s and spread all over the country. These measures were: • • • Security of tenure. the agricultural legislation was of four types: 1. legislative measures were passed in almost all the states to restrict the size of agricultural holdings. Ceiling on land holdings: The redistribution of agricultural land in rural areas was accepted as a measure for securing social justice. The purpose of the act was to collect donations of land for the distribution among the landless. Due to this reason. However. The implementation of these measures has been completed all over India. This situation also called for legislation for the protection of the interests of the tenants. In all 18 lakh hectares of land were collected under this act in various states. Abolition of intermediaries: The intermediary system included various types of interests between the owner and the cultivator. 4. with no intermediary between the state and the actual holder.

For example.Training.8. and bureaucracy for development initiatives. reciprocation & voluntarism. To achieve the desired goals an NGO does the following activities: • Relief/ Rehabilitation • • • • 22 Provide Services (Education. The NGOs mobilize people and create awareness. Philanthropic Organizations and Public Trusts and Societies. It works for public cause with altruism and voluntary basis. Presently we see the growing influence of NGOs in development. It is an organization in civil society which is purposeful and role bound. health etc) Livelihood development(IGP. Bangalore influence developmental agenda and approach (locally and globally). The state works through Govt. NGOs22 India has Long tradition of voluntarism and people with some beliefs and notions have started their own initiative to contribute to the society and thus formed Non –Government Organizations. communities. They are recognized by the State and global agencies of the role of Civil Society. The poor feel empowered when they get choices and an NGO helps in the same strengthen the civil society. Civil Society: The civil society consist of individuals. The NGOs like MYRADA. Civil Society is called Third /Voluntary sector for the same reason. Now there is a need to dwell further into the cause of these NGOs. IRMAN Page | 37 . households. The role of Civil Society for development emerges in the context of failure of State and market for development. Market: The market consists of Corporates / Business entities who contribute financially and with their influence. The three Actors (Sectors) of Development: State: This is mandated by Social Contract (Constitution) and social welfare and benevolency are the driving force. social movements who work on the principles of altruism. organisations (formal and informal). Definition of an NGO is difficult due to diverse and changing forms and purposes not a very well structured. They work on demand driven basis for profit they are likely to earn. Goals / Objectives of an NGO Their objective is to take care of poor and destitute and attain sustainable and equitable development. etc) Mobilise and organise poor Build people’s institutions Source: NGO expert Shikha Thaman.

The organization encourages Innovative ideas and is also cost efficient.• • • Create Awareness/ Public advocacy Build models of development for replication Support other NGOs thru training/networkin What exactly makes an NGO or sail through opposition and fund scarcity? The answer lies in the strength of an NGO which is dedicated to the cause of development. The people of this organization exhibit high levels of commitment / motivation towards their mission. Henry Switzerland. They promote participatory approach which makes the beneficiaries experience ownership for the programme being carried out. They have the ability to reachout to poor & needy and hence are very effective. Dunant and Henry Davison Established in To alleviate poverty and improve quality of life.   . Q G L D Q  Director & Treasurer) Founded in Key Its mission is to protect human life and health 1863 in persons Geneva. headquarterPage | 38 Establishment year Established in the US in 2002. They also address the problem of state and market failure for the poor due to which they are always in demand. 1972 Established in Protection of human rights. Moreover an NGO has flexible /informal methods which give the members full freedom to work in the way they are comfortable and also the way they are convinced to achieve the goal. NGO’s in World Name of NGO CRY Child Rights and You America (formerly Child Relief and You) The International Red Cross and Red Crescent Movement Action aid Amnesty International Important Area of Operations Persons & 5 <  Z R U N V  Shefali W R Z D U G V  Sunderlal U H V W R U L Q J  E D V L F (President) U L J K W V  W R  X Q G H U S U L Y L O H J H G Srivatsan F K L O G U H Q   Rajan H V S H F L D O O \  (Honorary . 1961.

Sapru. to provide economic opportunity. Talwar and in USA to promote and Sandeep Tandon support educational and developmental efforts in India. NGO’s In India Name of NGO Cancer Patients Aid Association (CPAA) Self Employed women association (SEWA) Child Aid Foundation (CAF) Important Persons Area of Operations Founder Chairman. headqurter Brussel. A. Arvind Buch 1972 July 1st. Founded in Founders-Tarun A non-profit organization September 1999. and and to build sustained capacity for self-help. The founder and Children's aid and care. Establishment year 1969. 1993. Development of Women year 2001 in Ravindra Bhaurao & Child Prisoners Amravati. CARE Established in International 1946. union registered in Bhatt.london. Cancer Mr.K. VARHAD Prayas Page | 39 . Y. Siloo Jasdanwalla SEWA is a trade FoundersEla Poor women’s growth. Belgium. Maharashtra (India). Aiming to relieve human suffering. Goswami (adopted Indian name) Founded in the Founder-Mr. Vaidya. director Dr.

Navjyoti Established in 1987 FounderBedi Page | 40 . Director Dr. This org’n is for Economically and socially deprived.Dileep Mavlankar Organization working for Elder Care in India Nutrition. Training and Nutrition Awareness (CHETNA) Deepalaya Started in July 16.Mr. education and development of society.HelpAge India Formed in 1978 Centre for Formed in 1980 Health Education. 1979. health. Cecil Jackson Cole. the physically and mentally challenged children. Kiran This org’n deals with drug addicts. founder member of Help the Aged in United Kingdom Chairpersons-Dr. Sharada Jain. Founder.

9. Development schemes and indicators Some Important Indicators of Social Development Page | 41 .

1.Table 8: India and Comparator Countries Poverty projections for 2006-07 Urban: 5 crore (15% of urban population) Rural: 17 crore (21% of rural population) Total: 22 crore (19% of rural population) 9. HDI index Population (m) Per-capita GDP (PPP US$) HDI ranking (/177) Life expectancy (years) Combined gross enrolment (%) % Population under $2 per day Internet users (per 1000) Cellular subscribers (per 1000) 1.3 60 79.9 17 25 Source: UNDP Human Development Report 2005 Page | 42 .071 2.892 127 63.

secondary and tertiary sectors of rural economy. sickness. as they can be mutually reinforcing. etc. Provision of Employment can be useful in tackling poverty for certain categories of poor (those capable of taking up employment) Employment Programmes are designed under the Direct Attack strategy to provide employment to the poor Two categories of Employment Programmes meant broadly to take care of two types of poverty: . Cooperative banks O Implemented through DRDA (A Broad based representative body for guidance & directions for program implementation) 9.9. both Chronic as well as Transient Chronic Poverty: Household suffering poverty on a long-term basis due to continued deprivation (asset/skill/income/ employment) and failure of policies especially based on trickle down approach Transitory Poverty: Household momentarily falling into poverty or poverty worsening due to sudden fall in income and employment for reasons like natural calamities.2. It is essential that both types of poverty are taken care of.3. Self Employment programs • • • Providing and Generating Employment is a Major Approach to Poverty Alleviation Lack of sustained employment is a major cause of Poverty.Self-employment programmes for Chronic Poverty .Wage-employment programmes for Transient Poverty cross poverty line • • • • • Page | 43 . O Assistance through O Subsidy by government O Term credit advanced by financial institutions – commercial banks. RRBs. IRDP O Launched in 1980 O A Credit-linked-self employment program O Assists the identified Rural poor households to augment their income & help them O For Income generating activities in primary.

Wage Employment programs Large number of wage-employment program implemented. Rationale behind using wage employment for poverty elevation is that • Need for direct employment generation for tackling poverty – chronic and transient • Inability of self-employment program to tackle transient poverty • Very poor cannot take advantage of self employment program • Limited impact of self-employment program • Need for multi-pronged strategy for poverty alleviation. JRY. 9. The government has targeted to spend 6% of GDP on education. Directive Principle).Advantages of Self-Employment • Helpful to overcome failure of trickle-down • Occupational mobility for poor • Make poor entrepreneurs • Help poor to be self-reliant • Promote Diversification in rural areas Disadvantages of Self-Employment • Poor may lack skill and entrepreneurial abilities • Not suited for tackling transient poverty • Risk to be borne by poor • Problems in selecting poor / target group • Requires organized/sustained efforts to develop micro-entrepreneurial activities on a large scale • Failure to provide integrated services may lead to failure of activities • Requires sustained growth in demand for non-farm activities of the Self-employed people • Competition from organised sector for the poor 9. The Compulsory Education Acts has been passed by many states to make primary education compulsory. Page | 44 . NFWP. JGSY. 45. Education Our country has compulsory and free education for all children up to the age of 14 (Art.4. NREGA. FWP. EGS. RLGEP. The policy has also been enforcing education is the National Policy on Education (1986/92) and now the Universal Elementary Education (6-14 years)has been made compulsory.5. NREP. SGRY.

70 75.16 71.02 45.87 22. Following table shows the census data about the literacy in India.40 80.85 4.38 2001 Rural Urban Total Expenditure: (Centre and States) Page | 45 . additional teachers and teaching materials.40 86. There have been many interventions like Operation Black Board (1987): To provide infrastructure .33 8. The last sample survey reports that literacy rate in india during 2007 was close to 75%. The Mid Day Meal Scheme (2004) is universalised in all public schools in the country which has drawn a lot of children to schools. Recent data is based on the sample survey conducted by the nation. They are estimates not the exact values. District Primary Education Program (DPEP): (1994): Universalization of Education in low female literacy districts. Adult literacy (15-35 group).86 46.20 54.Sarva Shiksha Abhiyan (2001) is currently running all over the country where the target to put all Children in schools by 2005.10 34.60 27.Mahila Samakya ( Focus on Women through group approach). The Right to Education Bill 2005 in Parliament will give effect to the Constitutional Amendment. Year Male Female Total 1951 Rural Urban Total 19.16 12.After the constitutional amendment Education has become a Fundamental Right (2002). National Literacy Mission (1988):To attain literacy level of 75% .33 59.30 65. The state will endeavor to provide education.59 18.70 73.

Rural Health Service mainly constitutes of PHCs which have been there since 1952. and continue with corruption.2% 3. some states in India have more impressive literacy rates than others.8% 3. who can keep on neglecting real issues of socio-economic development. India's adult literacy rates (61. India's youth (age 15 to 24) literacy rate was 76. India’s Health Policy asks for Health for all by 2000 AD which is made possible by making primary health care universally accessible and affordable. but it was still to be achieved. states. India's national literacy is only 65. 9. The Role of PHCs is to give primary medical care and control of communicable diseases along with focusing on maternal & Child Care and family planning/ Health education. One PHC / 27. At current rates India will take no less than 20 years for a literacy of 95%.92% literacy rate in 2001.5% The target was to raise expenditure in education to 6% of total budgetary expenditure. As per the 2001 India census. Literacy drive is spreading slowly to other states. is just a little better compared to other nations in South Asia except Sri Lanka's 92%. with Nepal next at 44%. a south-Indian state widely recognized as the well-educated state in India.364 & One SC / 4579 is the main idea behind the service of PHCs. recorded an impressive 90.3% in 2002). gives undue advantage to contemporary politicians.53%.8% 3.% to GDP (Norm 6%) 1950-51 1989-90 1997-98 2004-05 1.1% of women were not literate as of 2006. Kerala.6. On the other hand the north-Indian state of Bihar lags behind with 47.4% between 2000 and 2004. When comparing the literacy rate with other countries we find that. 19. Literacy in India is not homogeneous.2 percent. The National Health Policy.2002 has the objectives to eradicate/Control Major Diseases by 2015 and make IMR to <30 by 2010. Health As defined by WHO Health is a state of not mere absence of diseases but a state of complete physical mental and social well-being.1% Many Indians have argued that illiteracy. Pakistan at 50-54% and Bangladesh the lowest at 43.8% of men and 41. Page | 46 . The expected value of IMR (Infant mortality rate) is less than 60 & Life expectancy is 64 Years. especially in the rural areas.

This is due to poor state of PHC rise of non-communicable and System and low Public Health Expenditure which is (1.3 % of GDP) only. Micro finance Page | 47 .0 60 6. Despite the entire rosy picture there are problems of Health Sector like the health Standards below norm and there has been a other diseases.1 27 146 0.18 9209 9. They aim to strengthen Rural Hospitals.031 Government has introduced National Rural Health Mission (NRHM)( 2005)to improve the availability and access to health delivery and care by increased allocation in 18 less developed states and increase Public Health Spending to 2-3 % of GDP. 10.25 1. (one CHC with 30-50 beds / lakh for curative purpose) and create accredited Social Health Activist in the villages (ASHA) along with formation of Village health and sanitation committee.Health Status / Progress 1951 Life expectancy Death rate(per 1000) IMR (1000 Births) Doctors (Modern) (Lakh) Beds (lakh) Dispensaries/Hospitals 32.14 38.62 2003/04 65 8.

SKS. BASIX are major microfinance institutions operating mainly in rural areas. The Grameen model of micro credit is a proven model. Cashpor. The number of customer world wide reached to 100 million23 in 2006.php) One study shows that more than 80. The reach of microfinance was marginal in the rural areas but virtually non-existent in the urban. I would call it the banking of east. SKRDP. Continuous experiment and refinement resulted into a model which in microfinance parlance called ‘Grameen Model’. Share Micro-Finance limited. In India this numbers reached to 20 million24. How many needed to make an urban one? Page | 48 . Microfinance is the latest buzzword in the world of banking and finance. Spandana. 11.com/sections/poverty/poverty_mf_main. The microfinance in Asia was the brain child of Mohammad Younus the founder of Grameen Bank. It started as small scale experiment in the villages adjacent to Chittagong University where he was teaching economics.uncdf. it has challenged and changed the way banking and financial services have been delivered since the onset of capitalism. frequently less than Rs 10000. Microfinance came into international limelight when last year’s Nobel Prize for Peace was awarded to Mohammad Younus of Grameen Bank of Bangladesh. this expands their choices and reduces the risks they face. The potential is immense as the number of poor who wanted and needed the microfinance services are estimated to be over 600 million. In India.unitus. It has been successfully replicated in India and around the world.org/english/microfinance/pubs/newsletter/pages/2005_06/news_india. Cooperatives 23 24 http://www. The un-served market is vast and a huge opportunity for growth is present in both the rural & urban segments. such as microcredit.000 customer can make a rural microfinance institution viable. Operating at the bottom of pyramid. As suggested by the name.asp (http://www. It has spread fast during the last decade. most transactions involve small amounts of money. microsavings or micro-insurance to poor people. Bandhan. By helping them to accumulate usably large sums of money.is a term for the practice of providing financial services.

a. Cooperative movement is very strong in India. Gujarat Co-operative Milk Marketing Federation Ltd. high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare" c. d. AMUL the well know Indian company is a brand owned cooperative only. IFFCO It is India’s largest cooperative. In some cooperatives. The numbers of co-operative societies associated with IFFCO are 155 at present. Cooperatives are financed by members purchasing stock. It is a brand name managed by an apex cooperative organization.Cooperatives work on the basis of user owner principle.41 million milk producers in Gujarat. is a dairy cooperative movement in India. b. which today is jointly owned by some 2. PACS Page | 49 . Sugar cooperatives in North (like UP and Bihar) are plagued with politics and are not performing as well as cooperatives of other states. Since independence the cooperative movement has enable Indian farmers and other small producer to cooperate and achieve a size that would help them to compete in the market place. The Amul Pattern has established itself as a uniquely appropriate model for rural development. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is also the world's biggest vegetarian cheese brand. The user-owner principle means the people who use the cooperative own and finance the business. or accepting selfimposed assessment on products purchased and/or sold or fees for services. Following are the list of major cooperatives in India. (GCMMF). To overcome this lacuna and to bridge the demand supply gap in the country. formed in 1946. paying membership fees. AMUL Amul (Anand Milk-producers Union Limited). IFFCO was formed as a unique venture in which the farmers of the country through their own Cooperative Societies created this new institution to safeguard their interests. "to enable Indian farmers to prosper through timely supply of reliable. members reinvest their earnings (profits) to capitalize the business. Sugar Cooperatives Sugar cooperatives are another group of cooperatives which are very effective. especially in the state of Maharashtra and Gujarat. India. Amul has spurred the White Revolution of India. The mission of the organization is. which has made India the largest producer of milk and milk products in the world. It produces fertilizers.

e. Retail revolution and farmer Page | 50 . There purpose is to distribute the agriculture input like fertilizers and seeds to the farmers. similarly NCUI is the Apex Cooperative Organization in India which represents all the segments of Indian Cooperatives.PACS are producers’ agriculture cooperative societies. In many states they are largely defunct and highly politicized. National Cooperative Union of India (NCUI) Industries have apex body like CII or ASOCHAM. These are lowest level cooperative societies operating in almost all the states. It was established in 1929 as All India Cooperative Institutes and renamed to National Cooperative Union of India in 1961 12. Its objectives are to promote and develop the cooperative movement in India.

Variety and Volume Expanding target consumer segment: The Sachet revolution . b. the biggest success is K Raheja's Shoppers Stop. the Mumbai books retailer Crossword. For e. service and entertainment. are focusing on specific market segments and have established themselves strongly in their sectors. Examples include Shoppers Stop. Retailing formats in India a. S Kumar's and Grasim first saw the emergence of retail chains Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers.Value. ft) across India and even has its own in store brand for clothes called Stop!.Industry Evolution S • • • • • o • • Traditionally retailing in India can be traced to the emergence of the neighborhood ‘Kirana’ stores catering to the convenience of the consumers.000 sq. Department Stores: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. it targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 V’s . The era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission The decade of 1980s experienced slow change as India began to open up economy. Malls: The largest form of organized retailing today. Among these. Piramyd. catering to varied shopper needs are termed as Supermarkets. d. Textiles sector with companies like Bombay Dyeing. Raymond's. Planet M and Music World in music.000 sq ft and above. Specialty Stores: Chains such as the Bangalore based Kids Kemp. Crossword and Fountainhead in books. mainly in urban areas. Post 1995 onwards saw an emergence of shopping centers.00. in proximity to urban outskirts.g.example of reaching to the bottom of the pyramid. Subhiksha and Nilgiris in food and FMCG. Hypermarts/Supermarkets: Large self service outlets. c. These are located in or near Page | 51 . They lend an ideal shopping experience with an amalgamation of product. which started in Mumbai and now has more than seven large stores (over 30. all under a common roof. with facilities like car parking. RPG's Music World and the Times Group's music chain Planet M. Pantaloon. Located mainly in metro cities. Food World. Ranges from 60.000 sq ft to 7.

Major retailers with their market share are given below. The product category can range from a variety of perishable/ non perishable goods In this rapidly evolving industry. Discount Stores: As the name suggests. Convenient store etc. offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. having a strong focus on food & grocery and personal sales.500 sq ft to 5.000 sq ft. ITC e-Choupal Page | 52 . e.000 sq ft and large supermarkets ranging from of 3. Super Markets can further be classified in to mini supermarkets typically 1.000 sq ft to 2. every day new formats are coming like Dollar store. 13. discount stores or factory outlets. These stores today contribute to 30% of all food & grocery organized retail sales.residential high streets.

they also serve as procurement and purchase points. greeting card. branded wheat flour. and farming best practices.g. known as e-Choupals. Traditionally a tobacco and cigarette producer." or "village gathering place" in Hindi. ITC Limited is one of India's leading companies. the day-to-day operating costs. while also developing new markets for its own and third-party goods.With over US$ 2 billion sales. Each e-Choupal is managed by an ITC-appointed "Sanchalak". prepared food. An e-Choupal is a high-tech version of the traditional "choupal. which consist primarily of electricity and Internet connection charges.5 lakh each to set up. where farmers are provided with the latest weather reports. Marketing channel prior to e-choupal The figures in the bracket are the margins at different stages. rice etc). but also to buy agricultural inputs and consumer goods for daily household use. . a respected farmer of the community who takes a public oath of office upon accepting the position. Its diversification into consumer goods includes recent entry into the garment. information technology. The US$ 155 million International Business Division (IBD) of ITC's Agri Business segment was created to market India's agricultural produce internationally. and fast moving consumer goods (FMCGs). This division also sources agricultural raw material for its domestic FMCG business (e. Business model Its business model centers around the deployment of a network of Internet-connected kiosks. packaging. While ITC covers equipment. Aiming to integrate more closely with its rural suppliers. local and international produce prices. gift and matchbox industries. ITC began deploying its eChoupal network in early 2000 through its International Business Division. Page | 53 . Costing rupee 1-2. throughout agricultural areas in India. are covered by the e-Choupal Sanchalak. it has grown into a conglomerate dealing in hotels. agribusiness. allowing farmers not only to sell their produce to ITC.

e-Choupal operations Page | 54 .Mandi operations pre.

The mandi was inefficient and both for the farmers as well as the ITC. Page | 55 . Inefficiencies were in all the operations right from the inbound logistics to final payment of the farmer and outbound supply to the ITC. To create the win-win solution for both the following value chain was developed. The middlemen were the people who were cornering most of the profit.

WTO and Indian agriculture Page | 56 .Socio impact can be categorized as under: • Improved agriculture • Better lifestyle • Brighter future It has Improved Agriculture by Bridging the Information gap: • Weather • Better practices • Customized solutions Cheaper and smarter Inputs • Low costs • Aggregation • Intelligent deployment of products Farmers as a source of innovation P P P 14.Following were the benefits for both the parties: Farmers • • • Better information center Better information timing better price of produce due to • • • • Decreased transaction time Weighing accuracy Transportation cost Professionalism and dignity ITC Long term suppliers relationship with farmers Decreased cost Quality control Disintermediation savings There are many positive social Impact of e-Choupals: it has provided an inaccessible village with a window to the world .

Qatar. Agricultural trade became highly distorted. These talks have now been incorporated into the broader negotiating agenda set at the 2001 Ministerial Conference in Doha. which would not normally have been allowed for industrial products. It includes specific commitments by WTO member governments to improve market access and reduce trade-distorting subsidies in agriculture.WTO Fact File Location: Geneva. as required by the Agriculture Agreement. by the end of 1999. but it contained loopholes. It was a significant first step towards order. It was implemented over a six-year period (and is still being implemented by developing countries under their 10-year period) that began in 1995. The original GATT did apply to agricultural trade. Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94) Membership: 149 countries (on 11 December 2005) (Saudi Arabia is the last member) Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (Director-General) Functions: • Administering WTO trade agreements • Forum for trade negotiations • Handling trade disputes • Monitoring national trade policies • Technical assistance and training for developing countries • Cooperation with other international organizations WTO & Agriculture: The WTO Agriculture Agreement was negotiated in the 1986–94 Uruguay Round and is a significant first step towards fairer competition and a less distorted sector. i. it allowed countries to use some non-tariff measures such as import quotas. especially with the use of export subsidies. These commitments are being implemented over a six-year period (10 years for developing countries) that began in 1995.e. For example. and to subsidize. The Uruguay Round produced the first multilateral agreement dedicated to the sector. The Uruguay Round agreement included a commitment to continue the reform through new negotiations. These were launched in 2000. fair competition and a less distorted sector. Page | 57 . Participants have agreed to initiate negotiations for continuing the reform process one year before the end of the implementation period.

in/plans/planrel/fiveyr/10th/volume2/v2_ch 5_1. http://planningcommission. Mangala Rai-Director General. For interested readers following documents are freely available on internet. NABARD is formed through the Act 61 of 1981and came into existence on 12 July 1982.15. http://planningcommission. (NAFED) was established on the auspicious day of Gandhi Jayanti on 2nd October 1958. NAFED ICAR GCMMF Gujarat Cooperative Milk Marketing Federation.nic.in/plans/planrel/fiveyr/10th/volume1/v1_ch 2. 1.nic.nic.pdf (for macro economic indicators of the economy TRIFED Page | 58 . Parthi Bhatol. MD is Mr. Vyas Tribal Co-operative Marketing Development Federation of India Ltd. This is most authenticated data and updated as per the end of tenth plan.html (for every parameter of Indian Economy) 3.in/plans/planrel/fiveyr/welcome. Y S P Thorat is present Chairman of NABARD National Agricultural Cooperative Marketing Federation of India Ltd. year 2006-07.pdf (for detailed agriculture data and analysis) 2. Important Institutions Important Institutions NABARD National Bank for Agriculture and Rural Development. that is. Dr. Ajit Kumar Singh is chairman of NAFED Indian Council of Agricultural Research Dr. http://planningcommission. Chairman of GCMMF is Mrs.

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