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Agriculture Sector

Agriculture Sector

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Published by: Shantnu Whack Head Das on Mar 18, 2012
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Agriculture Sector

Key focus Areas (11th five year plan) • Inclusive Regional Growth in Agriculture sector • A decentralized decision making approach which pays heed to local problems • Farmers access to technology to improve production • Sustainability of natural resources • Enhancing quantum and efficiency of public investments in agriculture • Increasing system support and rationalizing subsidies • Encouraging diversification towards higher value crops and livestock • Protect the farmer against food security concerns • More comprehensive access to credit skills land and scale for the poor farmers .

Important changes from yester-years • There is definite growth recovery after 2004–05 from an earlier deceleration irrespective of the series considered. which factors in an improvement in agriculture’s terms of trade. • The target of 4 per cent growth has not been achieved except in the case of purchasing power of agricultural GDP. .

the figures bring out two points stressed in the MTA of the Tenth Plan: that growth deceleration was much more for food grains than for agriculture as a whole. the year-to-year variation in annual growth rates of output and GDP as measured by their standard deviation over five-year periods have now dropped to an all-time low although • Finally.continued • Third. and that farm income variability rose after agriculture trade was opened under WTO .

shows that technology is one of the prime movers of agricultural productivity and growth.TECHNOLOGY GENERATION AND DELIVERY • Past experience in India.6 per cent of agri-GDP on agri-R&D It is widely believed by experts that India needs to raise this to at least 1 per cent of agri-GDP. and institutions. as well as world wide. • India currently spends about 0. regions. and lack of incentives . which is an average of the developing countries • The generation and dissemination of technology is hampered not only by lack of investible resources but also by its sub-optimal priorities across crops.

Continued • Broadly. . where productivity levels are low and far below the economic potential of available technology as seen in most parts of eastern and central India The former require breakthrough in technology and the latter require an extension and a favorable policy environment like remunerative prices. supply of inputs. and infrastructure back-up. the issues related to technology can be put in two categories • One. where productivity levels are high and have moved closer to economic potential like wheat and paddy in northwest India and castor and cotton in Gujarat • Two.

the Parthasarathy Committee outlines the key reforms to be carried out in the watershed programme. . which includes an initial preparatory phase of two years focused on building local capacities and institutions that would run the programme in the subsequent years. especially at the district-level and below. These include: i.Path breaking initiatives of 11th five year plan • Drawing upon the lessons of the last two decades. A 3-phase programme. Dedicated full-time implementation structure run by professionals. ii.

Watershed work to be carried out on clusters of micro-watersheds from 4. which would be a quasi-independent authority to manage the watershed . Central emphasis on capacity building. vi.000. Much greater emphasis on monitoring. Creation of a national authority for rainfed areas. Building a livelihoods perspective into the programme from day one rather than as an afterthought at a late stage. with special emphasis on the interests of asset-less families. Recognizing local institution building as a key activity under the programme.000 to 10.000 from the prevailing Rs.Continued iii. 6. ix. and social audit. iv. involving the best available expertise from the voluntary sector. evaluation.000 ha rather than the earlier 500 ha micro-watershed. v. learning. vii. viii. Enhancing the per ha norm to Rs 12.

Salient features • Cluster approach • Institution development and capacity building • Monitoring and evaluation • Smoother release of funds Grassroots R&D Institutions Partners Universities Empowerment Field Support Technical Consultants Grassroots Partners .

• Two major new schemes.347 lakh farmers have been covered over an area of about 210. 1.48.09 million ha insuring a sum amounting to about Rs 1. .250 crore under the scheme.RISK MANAGEMENT • Appropriate strategies are required for agricultural risk mitigation and management. the National Food Security Mission (NFSM) and the RKVY were introduced during 2007–08 to provide states with additional resources on a 100 per cent grant basis. The National Agricultural Insurance Scheme (NAIS) introduced is being implemented in 25 states and 2 UTs at present.

to incentivize states into making higher expenditure on agriculture and allied sectors) seems to have been achieved to some extent. especially for its flexibility in giving states the power to choose interventions and set targets.8 per cent).4 per cent).3 per cent).2 per cent). which have been undertaking high average expenditure on agriculture and allied sectors in the last three years. • The objective of RKVY (that is.RASHTRIYA KRISHI VIKAS YOJANA • The RKVY in particular has been well received. .8 per cent) • On the other hand there are states like Himachal Pradesh (11.1 per cent).Punjab (2.8 per cent). and Goa (3.7 per cent). there are states like Manipur (2. there are reservations regarding the highly complex and detailed planning process and the size of funding as compared to the requirements assessed. Rajasthan (3. Jammu and Kashmir (3.8 per cent). Nagaland(9.7 per cent). Meghalaya(9. and Tripura(10.5 per cent). Uttarakhand (9. West Bengal (3. More specifically. Mizoram (8. However.9 per cent).

and integrated in the plan of the upper local body . meetings. and (b) plans for each local body (LB) need to be prepared.COMPREHENSIVE-DISTRICT AGRICULTURE PLANS • Financial assistance of Rs 10 lakh per district was provided to the states to facilitate the preparation of C-DAPs. it would require two main criteria: (a) information collection for preparation of C-DAPs should start from gram sabhas in villages as they are the basic units of planning. This effort was further supplemented by organizing workshops. and visits to the states to guide the preparation of C-DAPs • For the process to be participatory and have a bottom–up approach. discussed. interactions.

and training and mass media campaigns. distribution of High Yielding Variety (HYV) seeds. Integrated Pest Management (IPM). The main objectives of NFSM are to increase the production of rice. wheat and pulses through area expansion and productivity enhancement in a sustainable manner in certain identified districts of the country. conoweeders.Maharashtra. Integrated Nutrient Management (INM). rotavators. support for micro-nutrients. • interventions under NFSM relate to demonstration of improved production technology. gypsum. Orissa. Madhya Pradesh. Haryana. and popularizing newly released varieties. NFSM-Wheat. Karnataka. Rajasthan. Th is scheme included three components—NFSM-Rice. water lift ingand moisture saving devices. seed-drills. Gujarat. Th is scheme is being implementedin 312 districts in the 17 states of Andhra Pradesh. and West Bengal. Tamil Nadu.NATIONAL FOOD SECURITY MISSION • The National Food Security Mission (NFSM) is a new CSS.Assam.Uttar Pradesh. Bihar. Kerala.Jharkhand. extension. which was launched starting with rabi 2007–08. Punjab. zero tillage. Chhattisgarh. and NFSM-Pulses. .

wheat. and maize yields with a combination of incentives and infrastructure investments. on eastern India need to be set to harness groundwater to help raise rice. . including reputable agri-business leaders. preferably under the private sector or under the PPP mode • Special focus groups.Immediate Action Points to Strengthen Food Grain Security • Significantly higher investments are needed in modern bulk handling storage of basic food grains.

963 tonne rice has been procured by various Government agencies as on November 4.12th five year plan insights • India targets to achieve 9.2 per cent. a member of the Planning Commission. brightening the export prospects of the sweetener. on back of an estimated agriculture growth rate of 4.178. According to statistics 34. India's sugar production could increase to 25 MT in the 2011-12 marketing season (October-September).5 per cent average economic growth in the 12th Five Year Plan (2012-17). . • Production The Planning Commission maintains a projected demand of 247 MT by 2020. the Food Minister. 2011. The growth target for agriculture for the 12th Five Year Plan was announced by Abhijit Sen. as per Mr K V Thomas.

. from nearly 36 MT in 2009-10 to more than 40 MT in 2010-11.07 billion) outlay has been proposed for bringing at least 10 per cent of the horticulture crop area in India under this high tech cultivation practice in the 12th Five Year Plan (2012-2017). • Highlighting the virtues of protected cultivation to boost horticulture productivity.000 crore (US$ 6.continued • Favorable weather during the growing season in major potato producing states during 2010-11 resulted in about 13 per cent increase in production. a Rs 30. An area of 21 million hectares is under horticulture in India and contributes over 230 MT to the food basket of the country.

000 tonnes of rice to Bangladesh on government-to-government account at Rs 20.3 per cent of the total horticultural production in the country. The exports will be from the 3.000 (US$ 404.540 tonnes in the 2010-11 coffee year ended September 2011. according to a report by the International Coffee Organization (ICO) . • India's coffee exports rose by 42 per cent to record 360.Exports • India is among the 15 leading exporters of agricultural products in the world.000 tonnes of non-basmati rice permitted by the Centre on the heels of record production in wheat and bulging buffer stocks.000. Fruits and vegetables together constitute about 92. • India has already begun exporting 300.85) a tonne from September 2011.

due to decontrol of phosphatic and complex fertiliser prices . • The World Bank has approved a US$ 250 million credit and loan to the West Bengal Accelerated Development of Minor Irrigation Project (ADMIP) for augmenting agricultural production of small and marginal farmers.Investments • The agriculture services attracted foreign direct investment (FDI) worth US$ 1.42 billion between April 2000 to August 2011. Coromandel International and Rallis among others. • Foreign investors' are showing interest in fertiliser makers such as Chambal Fertilisers.

The aim of the organisation is to provide technical.000 hectares of farm land in the African nation to Indian farmers on a revenue-sharing basis. is looking at outsourcing 20. is planning to expand its packaged-food portfolio in the country . Farmers have adopted a direct-to-home model that will enable people to buy online as well as from outlets • Cargill India Private Ltd. which includes promoting agriculture activities such as organic and natural farming • Karuturi Global. best known for its edible oil brand Nature Fresh. the city-based publicly-held floriculture major and one of the world’s largest exporter of roses which is aggressively rolling out an agriculture business venture in Ethiopia. having its presence in more than 70 countries.Continued • Organic farming has become a promising method of agriculture and is gaining global recognition. financial support to local and national farmers' organizations across the world. La Via Compazine is an international farmers' organisation. The company hopes to get 35 per cent of its revenues from the agriculture business in the next couple of years • Pune is witnessing a new trend where farmers are approaching consumers directly with their produce.

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