The Monthly Journal

MINISTRY OF RURAL DEVELOPMENT Vol. 60 No. 6 Pages 52 April 2012
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Rural focus of budget 2012-13 G.Srinivasan Union Budget 2012-13: A Quick Review from Rural Livelihood Perspective 3


Dr. K. K. Tripathy


CRITICAL REVIEW OF THE UNION BUDGET 2012-13 Dr. Yashbir Singh Shivay Anshu Rahal THE BUDGET AND RURAL DEVELOPMENT Budgetary Allocation and its Utilization MGNREGS-A Viewpoint Second Green Revolution: Eastern States to Lead The Way Dr. Shahin Razi Dr. S.M Jawed Akthar N.P. Abdul Azeez Dhurjati Mukherjee

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APPROACHES TOWARDS TWELTH FIVE YEAR PLAN NEED FOR FOCUSED ATTENTION Arpita Sharma Electricity Through Cogeneration- A Promising Development FROM THE GROUND People’s Biodiversity Register and Tapping Indigenous Knowledge A Case Study From Wayanad Electricity from fruits and vegetables CARBON CREDIT AN ENVIRONMENT MANTRA Dr. J. R. Meshram Gargi Malik



Dr. Raju Narayana Swamy S.Jothimani M.Marimuthu M.Paramasivan Dr. R. Amsaveni Mrs. S. Gomathi



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he Union budget 2012-13 proposes to increase the total outlay for the agriculture sector by more than 18 per cent. Announcing the budget proposals the Finance Minister Pranab Mukherjee said that the agriculture sector would

continue to be a priority for the government. However, there has been a 17.5 per cent reduction in the outlay for MGNREGA. Several analysts have said that MGNREGA should improve quality of assets created and also to bring about synergy between the scheme and the agriculture sector. The hike in allocation for agriculture will benefit the farmers who have have also been allowed to use their Kisan Credit cards at the ATM. In addition, the target for agricultural credit has been raised by 100000 crore rupees to 575000 crore rupees. Budgetary allocation for rural drinking water and sanitation has been hiked by over 27 per cent, while allocation by Sarva Shiksha

Abhiyan increased by 21.7 per cent, in the budgetary allocation.  We discuss the implications of the budget proposals for the rural sector, including the agriculture sector in this issue. To enhance credit facilities to the rural sector the government has also announced 10000 crore Rupees to the NABARD (National Bank for Agriculture and Rural Development) for refinancing rural banks and help better for free flow funding. Bringing focus on agriculture, the Finance Minister declared revamping of five missions to merge various activities into set of missions to address the pressing needs of peasantry and to promote agricultural and rural development in a holistic fashion. Thus the National Food Security Mission aims to bridge the yield gap in respect of paddy, wheat, pulses, millet and fodder. The ongoing Integrated Development of Pulses Villages, Promotion of Nutri-cereals and Accelerated Fodder Development Programme would now become a part of this Mission.



April 2012

Rural focus of budget 2012-13
G. Srinivasan
- A welcome feature is that the interest rate of 4 per cent recommended by the National Commission of Farmers headed by farm scientist and Rajya Sabha Member Dr. M.S.Swaminathan has been retained for those who are prompt in repayment of loans contracted. - The budgetary outlay for rural drinking water and sanitation is proposed to be raised from Rs 11,000 crore in the fiscal 2011-12 to Rs 14,000 crore


hat the prospects of Indian economy centre mostly around the rural hinterland with agriculture still accounting for livelihood security of more than 80 per cent of the country’s population in one way or another need no reiteration. It is presumably this proposition that has weighed in the mind of the Union Finance Minister Mr. Pranab Mukherjee when he presented the UPA government Budget in Parliament on March 16. Recognising the underlying fiscal constraints and the need not to spread the available resources too thinly on a diverse range of progammes that do not pan out the desired results, the Budget has made

some realistic calculations based on sound and sustainable ground realities. Thus in the case of agriculture, the fulcrum for rural development in its entirety, there is no new initiative but in order to help farmers’ access to farm loans readily and adequately, the target for agricultural credit has been substantially stepped up to Rs 5.77 lakh crore during the fiscal 2012-13, the inaugural year of the Twelfth Five-Year Plan (2012-17). A welcome feature is that the interest rate of 4 per cent recommended by the National Commission of Farmers headed by farm scientist and Rajya Sabha Member Dr. M.S.Swaminathan



April 2012


has been retained for those who are prompt in repayment of loans contracted. Besides, the same interest subvention on post- harvest loans upto six months against negotiable warehouse receipt would also be available so as to encourage the farmers to keep their produce in warehouses.

The Budget intends to allocate Rs 10,000 crore to National Bank for Agriculture & Rural Development (NABARD) to set up a short-term regional rural bank (RRB) Credit Refinance Fund to enhance the capacity of RRBs to disburse short-term crop loans to the small and marginal farmers. In order to render kisan credit card (KCC) an effective tool for making agricultural credit available to the farmers, KCC scheme would be modified to make KCC a smart card which could be used at ATMs. In a bid to promote agricultural research the Finance Minister has proposed to allocate a sum of Rs 200 crore, besides putting into operation a Government-owned Irrigation and Finance Company to mobilise large resources to fund irrigation projects. Farmers hail this move as a salutary step provided the proposed firm focuses on bolstering rainwater harvesting through Jal Kunds, wastewater recycling and micro irrigation.

ongoing Integrated Development of Pulses Villages, Promotion of Nutri-cereals and Accelerated Fodder Development Programme would now become a part of this Mission. He further said that National Mission on Sustainable Agriculture including Micro Irrigation is being taken up as a part of the National Action Plan on Climate Change. The Rainfed Area Development Programme is to be merged in this Mission. The National Mission on Oilseeds and Oil Palm would increase production and productivity of oilseeds and oil palm, while in the new proposals, the National Mission on Agricultural Extension and Technology focuses on adoption of appropriate technologies by farmers for improving productivity and efficiency in farm operations. Alongside, the National Horticulture Mission would now also promote horticulture diversification including an initiative on saffron.

Protein Supplement
The Budget outlined that the Mission for Protein Supplement is being beefed up and with a view to improving the productivity in the dairy sector, an Rs 2242 crore project is being launched with assistance from the World Bank. In order to broaden the scope of production of fish to coastal aquaculture, apart from fresh water aquaculture, the outlay in 2012-13 is being augmented to Rs 500 crore, while adequate allocations are also being ensured for poultry, piggery and goat rearing in order to help rural people to bank on this subsidiary livelihood practice. For rural development, the budgetary outlay for rural drinking water and sanitation is proposed to be raised from Rs 11,000 crore in the fiscal 2011-12 to Rs 14,000 crore in 2012-13 in order to fight the scourge of malnourishment as weak sanitation coupled with unhygienic water quality continue to plague the poor. As Pradhan Mantri Gram Sadak Yojana (PMGSY) turned out to be a triumphal scheme, the Budget has raised the allocation to this important job-oriented and rural-development programme by 20 per cent
Kurukshetra April 2012

Green Revolution
It may be noted that among the benefits of the earlier initiatives which are to be unified, mention ought to be made of a modest start to bring the green revolution to eastern India. The Budget has augmented the allocation for this scheme to Rs 1000 crore from Rs 400 crore in fiscal 2011-12. In outlining the agenda for agriculture, the Finance Minister declared revamping of five missions to merge various activities into set of missions to address the pressing needs of peasantry and to promote agricultural and rural development in a holistic fashion. Thus the National Food Security Mission aims to bridge the yield gap in respect of paddy, wheat, pulses, millet and fodder. The

This will definitely improve connectivity in the States and bring them into the mainstream of markets both in semi-urban and urban conurbations. the Budget has decided to carry the Backward Regions Grant Fund scheme into the12th Plan with an enhanced outlay of Rs 12. This fund will also bolster the objectives of Aajeevika. an increase of over 22 per cent over budgeted 2011-12 outlay.e. the resultant growth benefits would help harness resources in a more purposive fashion to undertake development works in rural areas with redoubled verve and vigour. It is further proposed to provide interest subvention to women SHGs to avail loans up to Rs 3 lakhs at 7 per cent per annum. as the Government assumes the economic growth rate to go up from the estimated 6. rural housing and roads and bridges being managed by the Ministry of Rural Development. As the farmers mostly suffer for want of adequate storage amenities with most of the produce getting rotten and wasted. the Union Budget 2012-13 has allocated Central Plan outlay to the Department of Rural Development a massive sum of Rs 73.6 per cent based on the various enabling measures put in place in the budget for the economy to gain traction. This covers the State component which includes projects in backward areas in Bihar. WomenSHGs that repay loans in time would get additional three per cent subvention..000 crore.9 per cent in fiscal 2011-12 to 7. in the first phase.Last year budget announced the creation of a” Women’s Self-Help Group’s (SHG) development fund’ with a corpus of Rs 100 crore. i. Coupled with the enhanced allocation to agriculture. would focus on selected 600 blocks of 150 districts across the country. (The author is a Senior Journalist based in New Delhi) 5 5 Infrastructure The Budget makes a proposal to step up the allocation under Rural Infrastructure Development Fund (RIDF) to Rs 20. development projects for drought mitigation in the Bundelkhand region and projects under the Integrated Action Plan to expedite the pace of development in selected tribal and backward districts. economists and analysts unanimously say. a major initiative proposed in the Budget is to underpin Panchayats across the country through Rajiv Gandhi Panchayat Sashakitkaran Abhiyan (RGGPSA) to expand the existing schemes for Panchayat capacity-building. the National Rural Livelihood Mission by empowering women SHGs to access bank credit.000 crore. Mahila Kisan Sashakikaran Pariyojana under the National Rural Livelihood Mission (NRLM) Kurukshetra April 2012 . the budget has proposed to earmark Rs 5000 crore from this enhanced allocation of RIDF exclusively for fostering warehousing facilities under RIDF. In consonance with the last year’s budget focus on the development of backward regions. rural providing Rs 24.175 crore to undertake various special programmes for rural development.040 crore in 2012-13. The new initiative. including the Left Wing extremisms-hit districts. Taking a broader canvas. As rural women suffer for want of adequate opportunities to express themselves in various livelihood undertakings. West Bengal and Kalahandi-Bolangir-Koraput region of Odisha. In fine. reducing the effective rate to 4 per cent. by over 34 per cent from Rs 2914 crore in 201112 to Rs 3915 crore in 2012-13. the budget has chalked out a refreshingly new path to translate the various ongoing programmes into tangible benefits to the farmers in general and rural people in particular. the Budget has proposed to step up the allocation to the subcomponent. Panchayats As the third tier of local bodies is crucial for grassroots development. The Finance Minister announced in 2012-13 budget to provide Rs 200 crore more to enlarge the corpus to Rs 300 crore.

9 per cent. an average rate of 3. released a day prior to the presentation of Union Budget 2012-13 indicated that the Indian economy is going to experience a slump in the growth rate primarily due to the deceleration in the growth of the Indian industry. K. the economic growth during 2011-12 was estimated at 6. prevailing weaknesses in the industrial activity. Tripathy he Economic Survey 2011-12. However. India’s Gross Domestic Product (GDP) grew by 8. Further.4 per cent.A Quick Review from Rural Livelihood Perspective Dr.3 per cent growth during the 11th Five Year Plan (2007-08 to 2011-12) in the agriculture and allied sector indicates that Indian agriculture has been entangled in a low growth equilibrium trap and may not achieve the target of a 4 per cent annual growth rate during the 11th Plan period. deceleration of agri and allied 6 Kurukshetra April 2012 . in the Eurozone). K. it was expected that the Budget 2012-13 would strive to bridge the development Union Budget 2012-13: T deficits in the social sector not only by stepping up public expenditure on the social sector schemes/programmes but also by ensuring the quality of expenditure backed by revamped governance system at the grass-root level of their implementation. While during the two preceding years (2009-10 and 2010-11). rising fiscal deficits and growing cost of credit along with weak domestic business environment. The Union Budget 2012-13 was presented amidst uncertainties in the global economic environment (especially. In this backdrop. Addressing Growth Issues The Indian economy has survived from the global slowdown of 2008 and has witnessed a resilient growth rate in GDP of around 8 per cent during the last three years.

Thus. 351. 7 7 Rural Employment The 2012-13 plan allocation for MGNREGA has been reduced by 17. during 2012-13 Aajeevika will have an outlay of Rs. Kurukshetra April 2012 . the share of MGNREGA (Rs. drought/ flood control. the hike in the budget outlay for Aajeevika was much-needed to help in establishing a large number of micro-enterprises in rural areas and to effectively achieve the goal of poverty alleviation. This is primarily to be achieved by taking up project-oriented activities covering works on water conservation/harvesting.5 per cent during 2011-12) indicates the extant vulnerability of the country’s agriculture. During 2011-12. This marks a relatively high gross budgetary support to agriculture than rural development. The total plan outlay for the Department of Agriculture and Cooperation is increased by 18. federating these groups for better targeting. 33. The target groups are the poor living below the poverty line. but also support in making the agriculture a viable occupation As far as rural self-employment programme is concerned.991 crore during 2012-13. The enactment and implementation of a right-based MGNREGA has undoubtedly marked a paradigm shift from the existing wage employment programmes.914 crore. 74. The budget estimate for 2012-13 in case of MGNREGA is kept at Rs.2. provisioning market infrastructure.50 crore allocation for North Eastern Region) against the previous year’s outlay of Rs. taking steps for consolidating efforts on rural development and social sectors including removal of supply side bottlenecks in rural economy. This programme covers all aspects of self-employment starting from organisation of the poor into selfhelp groups (SHGs) to building their capacities.5 per cent whereas Aajeevika (earlier National Rural Livelihood Mission) has registered 34. 31.100 crore). The 2012-13 budget allocation (Rs.000 crore less than the Budget Estimate. 3. 33. the revised estimate for MGNREGA is pegged at Rs. credit/subsidy linkage and skill up-gradation and technology development. The need of the hour is to improve quality of assets created and to bring about synergy between MGNREGA and agriculture and allied rural livelihoods. During 2012-13. The Budget 2012-13 has stressed on improving India’s agriculture.175 crore) for Department of Rural Development has witnessed 1.000 crore.25 per cent reduction as compared to the budget estimates of 2011-12 (Rs.262 crore during 2011-12 to Rs. A timely convergence between Aajeevika and MGNREGA would help in extending skill training to rural households living on unskilled manual activities. Rural Livelihood Pre-Budget media expectations rightly predicted the Government’s stress on revamping rural infrastructure.5 per cent (from 7 per cent during 2010-11 to an estimated growth rate of 2. This endeavour will not only uplift the under-privileged and socially and economically vulnerable. 9.915 crore (including Rs.35 per cent hike in budget allocation in 2012-13 against the Budget Estimates of 2011-12. plantation. 73.sector-growth by 4. rural connectivity. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) contributed 54 per cent of the total budget allocation for Department of Rural Development during 2011-12. land development. 10. 9.000 crore which is Rs.6 per cent from Rs.000 crore) has been reduced to 45 per cent in the total budget allocation for the department. This indicates that this wage employment programme has stabilized in its operation and absorption in rural areas. etc. improving rural development initiatives and enhancing substantially the outlays for rural development.

that seeks to harness the inherent potential of the rural poor by organising them into small and cohesive groups and providing requisite infrastructure support for their income generation. The target set for agricultural credit is at Rs. The interest subvention on short term crop loans at 7 per cent interest per annum will continue in 2012-13. E-mail: tripathy123@rediffmail. Union Budget 2012-13 entails the enhancement of agricultural credit flow. the government’s prime objective has been directed towards ensuring an inclusive economic growth where benefits of economic growth are to percolate to the poor and underprivileged. expected that the Government has to strengthen its implementation and monitoring mechanism to ensure financial and operational sustainability. water and sanitation. revitalising agriculture extension. housing and employment which have a direct and lasting impact on the human development and overall economic growth. The Union Budgets of the government during 2007-08 to 2012-13 had witnessed an impressible improvement in the expenditure on priority social sectors viz. In this context. gainful employment generation and social security. (The author is an officer of Indian Economic Service and is Director in the Ministry of Rural Development. This is 21 per cent higher than the target fixed for Kurukshetra April 2012 Rural Credit and Financial Inclusion Recent rise in cost of credit not only impacted the domestic industries but also added to the overall agriculture cost of production.75 lakh crore in the next year. It is.It is well-documented that the provision of adequate livelihood security to the economically vulnerable sections of the country has not been commensurate with the magnitude of resource inputs of the series of poverty alleviation and employment generation programmes since independence. Modification of Kisan Credit Cards into a smart and ATM enabled card and revamping Regional Rural Banks will help in removing supply side rigidities in one of the important agri-inputs of Indian agriculture. mapping skills and improving skills and the promotion of quality SHGs and their federations. 5. the appropriate selection of economic activities. thus. Views expressed are personal. ensuring empowerment of the poor. an additional interest subvention of 3 per cent will be applicable for non-defaulting farmers. Post-Budget special and targeted efforts are needed to resolve issues like removing capacity constraints in the grass-root level democratic institutions and promoting their involvement in converging the benefits of various development interventions and infrastructurebuilding initiatives aiming at poverty alleviation. This will have a positive impact on the repayment behavior of the millions of borrowing small and marginal farmers. Aajeevika. Conclusion About two-thirds of the total country’s population live on agriculture and allied activities 8 . In addition. providing employment to the needy and creating durable agri-related productive assets. education. Various studies and review reports on Government sponsored development programmes are unanimous regarding the implementation flaws at the grass-root level. health. and stay in rural areas. irrigation. training and research. needs to resolve various shortcomings in implementation and administrative mismanagement which reduce the effectiveness of the programme. The main problem areas requiring policy attention are the coordination amongst field level agencies. bringing more children under the purview of formal education and improving rural health care initiatives.

from Rs 17.123 crore in 2011-12 to Rs 20.28 per cent against a target of 4 per cent. Agricultural policy focus in India across decades has been on self-sufficiency and selfreliance in foodgrains production. what is of concern is that growth in the agricultural sector has fallen short of the Plan targets. the Ninth and Tenth Five Year Plans witnessed agricultural sectoral growth rate of 2.208 crore in 2012-13. G However.CRITICAL REVIEW OF THE UNION BUDGET 2012-13 Dr. During the current Five Year plan. after having grown at 8. rise in crude oil price and earthquake in Japan.9 per cent in 2011-12. Slowdown in comparison to preceding two years is primarily due to deceleration in industrial growth and also due to intensification of debt crises in Euro zone. Foodgrains production rose from 52 million tonnes in 1951-52 to 244. Agriculture has been a way of life and continues to be the single most important livelihood of the masses.0.4 per cent in preceding two years. During the period 1960-61 to 2010-11.25 per cent. Yashbir Singh Shivay and Anshu Rahal Plan Outlay for Department of Agriculture and Co-operation increased by 18 per cent i. The Approach Paper to the Twelfth Five Year Plan emphasises the need to ‘redouble our efforts to ensure that 4. In fact.30 per cent respectively compared to 4. The share of agriculture in real GDP has fallen given its lower growth rate relative to industry and services. India’s GDP growth in 2012-13 expected to be 7. ross domestic product (GDP) is estimated to grow by 6. foodgrains production grew at a compounded annual growth rate (CAGR) of around 2 per cent. political turmoil in Middle East. Considerable progress has been made on this front.44 per cent and 2. Achieving minimum agricultural 9 Kurukshetra April 2012 9 . Without incremental productivity gains and technology diffusion across regions. achieving this higher growth may not be feasible and has implications for the macroeconomic stability given the rising demand of the 1.78 million tonnes in 2010-11.e.72 per cent during Eighth Five Year Plan. agriculture growth is estimated at 3.0 per cent average growth’ is achieved during the Plan if not more.6 per cent +/.21 billion people for food.

Allocation of funds for the Major Schemes / Programmes in Agriculture Sector Agriculture being a state subject. and exploring the vast untapped potential of the sector rests with the state governments. Bihar. accounted for 14.217 crore in 2012-13 Union Budget by the honourable Finance Minister. It will have significant impact on increased agricultural production and productivity in the long run. agriculture alone accounted for 12. enhancing productivity. Reasonable growth in agriculture is important both from the nutritional point of view as well as to control food prices and overall headline inflation.5 per cent that agriculture and allied sectors had in GDP in 2010-11.7 per cent. Union Budget 2012-13 proposes to increase by 18 per cent from Rs 17.123 crore in 2011-12 to Rs 20. Mr.5 per cent of gross domestic product at 2004-05 prices. Considering the importance of agriculture in the Indian economy.4 per cent and fishing at 0. followed by forestry and logging at 1. The outlay for Rashtriya Krishi Vikas Yojana (RKVY) has been increased from Rs 7. the primary responsibility for increasing agriculture production.000 crore in the Eleventh Plan for incentivizing states to enhance public investment to achieve 4 per cent growth rate in agriculture and allied sectors during the Eleventh Five Year Plan period. in 2010-11 as compared to 14. a number of centrally sponsored and central-sector schemes 10 10 Vidarbha Intensified Development Programme Irrigation Irrigation is one of the most important inputs required at different critical stages of plant growth of various crops for optimum production. Jharkhand. However. Major emphasis for agriculture sector in Union Budget 2012-13 Agriculture including allied activities. out of the total share of 14. Notwithstanding the declining trend in agriculture’s share in the GDP. Eastern Uttar Pradesh and Chhattisgarh.860 crore in 2011-12 to Rs 9.208 crore in 2012-13 as the total plan outlay for the Department of Agriculture and Cooperation. Rashtriya Krishi Vikas Yojana (RKVY) The RKVY was launched in 2007-08 with an outlay of Rs 25. States in eastern India have reported an additional paddy production of seven million tonnes in Kharif 2011. The program would target the improvement in the rice-based cropping systems of Assam. Orissa. The Government of India has taken up augmentation of irrigation potential through public funding and Kurukshetra April 2012 . Pranab Mukharjee. are being implemented for enhancing agricultural production and productivity in the country and increasing the income of the farming community.000 crore in 2012-13 from Rs 400 crore in 2011-12. West Bengal. in order to supplement the efforts of the state governments. last years’ initiative will be continued in 2012-13 with a further allocation of Rs Rs1.3 per cent. The initiative of Bringing Green Revolution to Eastern India has resulted in a significant increase in production and productivity of paddy.growth is a pre-requisite for inclusive growth. development of the rural economy and enhancing of farm incomes. which is good sign for second green revolution to be happening in the near future.7 per cent in 2009-10. reduction of poverty levels. This step is a praiseworthy and long awaited of the Honourable Union Finance Minster for the overall growth and development of the agriculture and allied sectors in particular and inclusive growth in general. Initiative of Bringing Green Revolution to Eastern India The Green Revolution in Eastern Region is waiting to happen and to realize the potential of the region. In terms of composition. Hence growth in agriculture and allied sectors remains a ‘necessary condition’ for inclusive growth. it is critical from the income distribution perspective as it accounted for about 58 per cent employment in the country according to Census 2001.

While the higher irrigation potential would help augment production and productivity. Rs assisting farmers to create potential on their own farms. Under this programme. Structural changes in AIBP being made to maximise flow of benefit from investments in irrigation projects. Allocation for AIBP in 2012-13 stepped up by 13 per cent to Rs 14. Government has taken several measures for improving agricultural credit flow and bringing down the rate of interest on farm loans. Union Finance Minister proposed to raise the target for agricultural credit in 2012-13 to Rs 5. from major / medium / minor irrigation projects under the AIBP. Substantial irrigation potential has been created through major and medium irrigation schemes. The interest subvention scheme for providing shortterm crop loans to farmers at 7 per cent interest per annum will be continued in 2012-13. This represents an increase of Rs 1. National Mission for Protein Supplements The consumption of foods rich in animal protein and other nutrients has risen of late. While the higher irrigation potential would help augment production and productivity. apart from fresh water aquaculture. under RKVY. an irrigation potential of 566. the same interest 11 11 . A flood management project approved by Ganga Flood Control Commission at a cost of Rs 439 crore for Kandi sub-division of Murshidabad District was also announced by the honourable Union Finance Minister in his Union Budget 201213 speeches. the outlay in 2012-13 is being stepped up to Rs 500 crore. As on 31 March 2011.e.000 crore over the target for the current year i. About 10. with demand growing faster than production. the honourable Union Finance Minister allocated Rs 300 crore to Vidarbha Intensified Irrigation Development Programme. Under the AIBP.24 thousand ha is reported to have been created by states.242 crore. This is a timely taken step by the Union Finance Minister in the present increased demand driven era.75. piggery and goat rearing. The National Mission for Protein Supplements was being launched in 2011-12 with an allocation of Rs 300 crore.242 crore project is being launched with World Bank assistance. In addition.78 crore KCCs had been issued up to October 2011.380. During 2010-11. Initiative has been taken to provide kisan credit cards (KCC) to all eligible and willing farmers in a time-bound manner. Irrigation and water resource finance company being operationalsed to mobilise large resources to fund irrigation projects. To improve productivity in the dairy sector. Mission for Protein Supplement is being further strengthened and to broaden the scope of production of fish to coastal aquaculture. 2011-12. a Rs 2. 290 projects were covered under the AIBP and 134 completed. assured remuneration from such production is vital for development of agriculture. This Scheme seeks to bring in more farming areas under protective irrigation. The scheme includes reasonable components of consumption credit and investment credit within the overall credit limit to provide adequate and timely credit support to farmers for their cultivation needs. Kurukshetra April 2012 Agriculture Credit Agricultural credit plays an important role in improving agricultural production and productivity and mitigating distress of farmers. An additional subvention of 3 per cent will be available to prompt paying farmers.000 crore.00.64 crore of central loan assistance (CLA)/grant has been released up to 30 November 2011. assured remuneration from such production is vital for development of agriculture. This year. Suitable allocations are also being made for poultry. KCC scheme will be modified to make KCC a smart card which could be used at ATMs. projects approved by the Planning Commission are eligible for assistance. Accelerated Irrigation Benefit Programme The central government initiated the Accelerated Irrigation Benefit Programme (AIBP) from 1996-97 for extending assistance for the completion of incomplete irrigation schemes.

change. Enhanced production would bring down our dependence on imports in the P&K sector. Storage Capacity and Cold Chains The Government has taken steps to create additional foodgrains storage capacity in the country. In addition to the above-mentioned facility a short-term RRB Credit Refinance Fund is being setup to enhance the capacity of Regional Rural Banks to disburse short term crop loans to the small and marginal farmers. 2012-13. National Mission on Food Processing The food processing sector has been growing at an average rate of over 8 per cent over the past 5 years. Over next 3 year.subvention on post harvest loans up to six months against negotiable warehouse receipt will also be available. it has been decided that a new centrally sponsored scheme titled ‘National Mission on Food Processing’ would be started. a mobile-based Fertilizer Management System has been designed to provide end-to-end information on movement of fertilisers and subsidies. We have to develop plant and seed varieties that yield more and can resist climate 12 12 Rs 100 crore to Kerala Agricultural University Rs 50 crore for University of Agricultural Sciences Dharwad. Honourable Union Finance Minister proposed to set aside a sum of Rs 200 crore for incentivising research with rewards. teaching and extension activities:   Agricultural Research Food security and agricultural development in the coming decades would depend upon scientific and technological breakthroughs in raising productivity. In case of the potassic-phosphatic (P&K) fertiliser. Government has taken steps to finalise pricing and investment policies for urea. Nearly 15 million tonnes capacity is being created under the Private Entrepreneur’s Guarantee Scheme. To reduce India’s import dependence in urea. It is a bold and timely taken decision by the Central Government to meet out climate resilient agriculture. to be further brought down to 1. This will encourage the farmers to keep their produce in warehouses. Union Finance Minister proposed in his Union Budget 2012-13 to allocate Rs 10. both for institutions and the research team responsible for such scientific breakthroughs. Subsidy provision for fertilizer sector Endeavour to keep central subsidies under 2 per cent of GDP in 2012-13 for all the applicable sectors. Based on recommendation of task force headed by Shri Nandan Nilekani. In order to have a better outreach and to provide more flexibility to suit local needs. country will become self sufficient in manufacturing urea in the next five years. Creation of 2 million tonnes of storage capacity in the form of modern silos has already been approved. It is expected that with the implementation of the investment policy.000 crore to NABARD for refinancing the RRBs through this fund. in cooperation with the State Governments in 2012-13. Agricultural Institutions that are being given grants The driving force of a modern nation is research and the creation of new knowledge and considering this important view in mind the Honourable Union Finance Minister made an allocation of funds in his budget 2012-13 to the following agricultural institutions / universities for strengthening of their research. Augmentation of storage capacity through private entrepreneurs and warehousing corporations has been fast tracked capacity will be eligible for viability gap funding of the Finance Ministry. of which 3 million tonnes of storage capacity will be added by the end of 2011-12 and 5 million would be added next year i.75 per cent of GDP. Karnataka Kurukshetra April 2012 .e. In this budget Government has taken steps to finalise pricing and investment policies for urea to reduce India’s import dependence in urea. use of single super phosphate (SSP) will be encouraged through greater extension work. This fertiliser is manufactured entirely in the domestic sector.

Anand. 2015. It was also proposed to extend concessional import duty available for installation of Mechanised Handling Systems and Pallet Racking Systems in mandis or warehouses for horticultural produce. Hissar 50 crore to Orissa University of Agriculture and Technology Rs 100 crore to Acharya N. Rs 50 crore to Chaudhary Charan Singh Haryana    Agricultural University. Rs fully exempted from basic customs duty of 5 per cent for a period of three years up to March 31. The staff members / students / scientists of their respective universities will definitely appreciate the kind gesture of the Central Government. from Rs 17. teaching and extension. Rs 300 crore to Vidarbha Intensified Irrigation Development Programme under RKVY.e. Imports of equipment for initial setting up or substantial expansion of fertiliser projects are being Kurukshetra April 2012  Initiative of Bringing Green Revolution to Eastern India (BGREI) has resulted in increased production and productivity of paddy. root or tuber crop harvesting machine and rotary tiller and weeder and parts for the manufacture of these machinery / equipments.00. Ranga Agricultural University in Hyderabad and Rs 25 crore to the Institute of Rural Management.  Outlay  Tax rebate to Agriculture and Related Sectors Carrying forward the initiatives taken for agriculture and agro-processing in the previous Budgets. Also to extended project import benefit to green house and protected cultivation for horticulture and floriculture at concessional basic customs duty of 5 per cent.000 crore to Rs 5.5 per cent.242 crore project launched with World Bank assistance to improve productivity in the dairy sector.5 per cent to 5 per cent and from 5 per cent to 2.5 per cent to 5 per cent on specified coffee plantation and processing machinery. Outlay for Department of Agriculture and Co-operation increased by 18 per cent i. other than urea. for Rashtriya Krishi Vikas Yojana (RKVY) increased to Rs 9. Rs 500 crore provided to broaden scope of production of fish to coastal aquaculture.75.123 crore in 2011-12 to Rs 20. He also proposed to reduce basic customs duty on some water soluble fertilisers and liquid fertilisers. G.217 crore in 2012-13. 13 13 .5 per cent to 2. The Honourable Union Finance Minister also proposed to reduce basic customs duty from 7.208 crore in 2012-13. Key Features of Union Budget 2012-13 for Agricultural Sector  Plan The allocation of the above-mentioned funds to these state agricultural universities / institutions will help not only to improve their infrastructures but also their overall out-put in terms of research.5 per cent on sugarcane planter.000 crore in 2012-13. Remaining activities to be merged into following missions in Twelfth Plan:   National National Food Security Mission Mission on Sustainable Agriculture including Micro Irrigation Mission on Oilseeds and Oil Palm   National National Mission on Agricultural Extension and Technology  National Horticultural Mission National Mission for Protein Supplement v Rs 2. Allocation for the scheme increased to Rs 1. Agriculture Credit v Target for agricultural credit raised by Rs 1. the Honourable Union Finance Minister in his budget 2012-13 proposed to reduce basic customs duty from 7. from 7.000 crore in 2012-13 from Rs 400 crore in 2011-12.

Kisan l Full exemption from basic customs duty for import of equipment for expansion or setting up of fertiliser projects up to March 31. National Mission on Food Processing l l A new centrally sponsored scheme titled ‘National Mission on Food Processing’ to be started in 2012-13 in co-operation with State Governments. This calls for speedy improvement in yield in order to increase production through adequate investment in research and development. 2015.78 million tonnes in 2010-11. The successive Five Year Plans have emphasized growth in the agriculture sector. spanning agricultural R&D. l A flood management project approved by Ganga Flood Control Commission at a cost of Rs 439 crore for Kandi sub-division of Murshidabad District. as a result of which foodgrains production reached a record level of 244. A holistic approach. India is lagging behind global levels in most crops. though the flow of agricultural credit has increased in the recent past. and provision of agricultural inputs such as quality seed. Tax rebate Agriculture and Related Sectors l Basic customs duty reduced for certain agricultural equipment and their parts. Short-term RRB credit refinance fund being set up to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers. for AIBP in 2012-13 stepped up by 13 per cent to Rs 14. However. Agricultural Research A sum of Rs 200 crore set aside for incentivising research with rewards. In order to make 4 per cent agricultural growth a reality. pesticides. increasing agricultural production remains a challenge. l agriculture and allied sectors have made substantial progress in terms of production and productivity since the beginning of the Planning process.242 crore. fertilizers. the challenges are far from over. A number of supply-side constraints exist and thereby achieving the food and nutritional security is a challenge. 14 14 . Agricultural growth in the current Five Year Plan is expected to be less than the target. Effective coordination and monitoring of ongoing agriculture and allied sectors programmes need to be ensured for optimum results.v Interest subvention scheme for providing short-term crop loans to farmers at 7 per cent interest per annum to be continued in 2012-13. v Challenges ahead and outlook of Indian agriculture l The v Credit Card (KCC) Scheme to be modified to make KCC a smart card which could be used at ATMs by the Indian farmers. Kurukshetra April 2012 l Allocation There l Irrigation and Water Resource Finance Company being operationalised to mobilise large resources to fund irrigation projects. has been declined in area under foodgrains in the last three decades. With very little growth in area and marginal growth in yields of many crops during the last decade. Steps taken to create additional food grain storage capacity in the country. Additional subvention of 3 per cent available for prompt paying farmers. adequate efforts are required to focus on addressing the challenges in this sector. dissemination of technology. Irrigation l Structural changes in Accelerated Irrigation Benefit Programme (AIBP) being made to maximise flow of benefit from investments in irrigation projects. Access of small and marginal farmers to formal sources of agricultural credit is still inadequate. would help achieve higher levels of productivity. In yield parameters. and irrigation.

The successful experience of cooperatives in the milk sector in managing the supply chain and providing remunerative prices to the producers may be emulated in the case of agricultural products. egg. hampers the development of the agriculture sector. there is need to devise insurance schemes linked to indices of various vulnerability parameters. The average farm size in the country has declined over the years. This poses a challenge in terms of adoption of farm mechanization as well as generating productive income from farm operation. handling. the level of secondary food processing in India is very low. Climate change and extreme weather conditions impacting agriculture. meat. The country has to step up efforts for increasing production of milk and other dairy products. and public policy so that it covers a large section of population. especially storage. For ensuring nutritional security. Setting up of efficient supply chains is essential not only for ensuring adequate supplies of essential items at reasonable prices but also so that producers get adequately compensated. However. incorporating the perspectives of the insured. This adds to the risks a farmer faces. The insurance policy framework needs to be dynamic. This. There have been increases in the prices of these items because supply has not kept pace with demand. therefore. Enhancing the returns farmers get on their production is essential for incentivizing them to produce more. communication. and packaging of processed food needs encouragement. l There l In l Still majority of the Indian agriculture is dependent on the monsoon. Public private partnership models can be of help in ensuring faster development of these requirements which are of vital importance for the growth of the agriculture sector. to many western countries. in turn. The dependency of the Indian farmer on the monsoon has to be reduced largely by increasing the irrigation facilities. etc. cold chains. Farmers need to realize the market price for their produce. So far the focus in food management has been on cereals. With increasing income and population. for which land laws for leasing with sufficient safeguards in place should be considered. it is not only important to increase per capita availability of foodgrains but also to ensure that right quantities of food items are there in the food basket of the common man. It is necessary to cater to this changing demand and at the same time enhance the income of farmers. 15 15 l Compared l The Kurukshetra . Investment in food processing. demand for processed food is likely to increase. Pooling of many landholdings may yield better economies of scale. and markets should be a priority. roads. insurers. India. A thrust on horticulture products is required for enhancing per capita availability of food items as well as ensuring nutritional security.l Mostly Indian farmers are either small or marginal farmers with small and fragmented landholdings. fish. storage capacity is a major problem presently facing the country. the present scenario the higher levels of purchasing power are supporting higher demand for protein rich food items. Addressing infrastructure requirements in the agriculture sector. l In facility would help reduce post-harvest losses. Adoption of modern farm implements and tools especially by small farmers is still low because of their lack of resources. Adequate storage April 2012 is an urgent need for improvement is the generation of real-time market intelligence and also agricultural market reforms. poultry. the demand for processed food is expected to increase. the declining per capita availability of foodgrains has been a matter of great concern. mainly rice and wheat. very important. Linking farmers to the market is.

Division of Agronomy. 100/2 yrs for Rs. Record procurement of rice and wheat in the last few years has helped build up the buffer stock and strategic reserve of wheat and rice. New Delhi. in turn. Tel. ________________________________________________Date____________________ Name (in block letters) Address Please send DD/IPO/MO to Business Manager Publication Division. Fax : 26175516 Also ensure that it is drawn in favour of Director Publication l Considering SUBSC R I PT I ON COUPON (For New Membership/Renewal/Change in Address I want to subscribe to_________________________________________(Journal’s name & language) for 1 yr. 180/3 yrs.res. 250/- DD/IPO/MO No. (The first author is Principal Scientist. New Delhi-110066. G. : 26105590. This is considered necessary for incentivizing farmers to increase production and productivity. 16 16 Kurukshetra April 2012 . a huge cost involved in the process.l Over the last few years there has been substantial increase in the minimum support prices (MSPs) of various crops. the MSP signals the floor price for the produce which. Please allow 8 to 10 weeks for the despatch of the 1st issue. ysshivay@hotmail. Ministry of Information and Broadcasting. R. Puram. inability of a large number of small and marginal farmers to directly access the agriculture market puts a question mark on increases in MSP actually benefiting such farmers. and supporting investment in research and development (R&D) of agriculture and allied disciplines with due emphasis on environmental considerations. We are sure that these efforts will in time rejuvenate agriculture sector and bring about increased inclusive growth of the Indian economy. There is. strengthening marketing infrastructure. however. College of Veterinary and Animal Sciences. Pantnagar 263145. Addressing the welfare of agricultural producers and consumers simultaneously poses a challenge. New Delhi 110012. At the same time. developing rural infrastructure. PIN Note: For Renewal/change in address-please quote your Subscription No. East Block. com. Level-VII. for Rs. for Rs. 26100207. renewing thrust on the irrigation sector. The issue of efficient food stocks management and offloading of stocks in time needs urgent attention. Indian Agricultural Research Institute. Further. all the above-mentioned Second author is an assistant Professor. there is an urgent need to address the challenges of the agriculture sector through comprehensive and coordinated efforts directed at improving farm production and productivity of foodgrains as well as high value crops. Uttarakhand. Pant University of Agriculture & Technology. has the potential of increasing prices. ysshivay@iari. K. in the form of food subsidy. anshurahal@rediffmail. B. Department of Animal Nutrition.

the allocation for various programmes that spearhead rural development has been increased to Rs. Finance Minister Pranab Mukherjee has also revised the current year’s allocation to Rs.722 crore till February-end.000 crore in 2011-12.599 crore.000 crore. 31. The reduction comes against the backdrop of the poor performance of the scheme and demands by the Agriculture Ministry. lower than budget tax revenues. Shahin Razi. Pranab Mukherjee has presented a credible and prudent budget. This is commendable considering the multiple headwinds. 7.5 per cent to only Rs.301 crore in 2011-12 for a 6 per cent increase by Rs. the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). also narrowed policy options. but the government has downsized in a big way the importance of its flagship programme. 24. against the 5. agriculture and rural economy and inclusive growth. This budgetary allocation is next only to the allocation to the Defence Ministry.000 crore in the next financial year from Rs. by way of an anaemic global recovery. which the Economic Survey released on Thursday echoed.106 crore. a tad higher than the release of just Rs. For the scheme entitling jobs to below poverty line (BPL) households in rural areas. The Budget 2012 seeks to revive the growth momentum in the economy with a focus on infrastructure development. the allocation has been reduced by 17. 40.THE BUDGET AND RURAL DEVELOPMENT Dr. no doubt. 98. 24. while the expenditure by the States stand at Rs. T 33. sharp movements in the rupee exchange rate and stubborn inflation during much of the year. Only 4. The Budget 2012 focuses on rural development with a moderate hike in allocation. Associate Professor he Finance Minister. resulting in high interest rates. The compulsion of managing a coalition government. for a moratorium during agriculture season on the ground that it deprived availability of labour.900 crore from Rs.49 crore households that availed jobs under the scheme in 2011-12. 17 Kurukshetra April 2012 17 . Notwithstanding this cut.09 crore households have been provided with jobs till midFebruary. 91. persistent high oil prices. Mr.

000 crore from Rs. Mr. which too could have been overestimated. PG Department of Economics And Dean of the Faculty of Arts. 24.000 crore in 2012-13 for a 20 per cent hike to increase road connectivity in rural areas. In the first phase.5 to 3 acre of land for the purpose. Overall the union budget adopts a pragmatic approach towards addressing the needs of the economy and managing the fiscal position. 3. In the long term the fundamental strengths of the Indian economy coupled with appropriate fiscal policies and investments in key sectors should take India to a higher growth trajectory. 200 to Rs.000 crore for a 27 percent increase. the allocation has been raised from Rs.Minister of Rural Development Jairam Ramesh clarified that the government was committed to meeting any demand for job and money would be provided as and when required by the States. houses. For the integrated watershed programme under the Land Resources Department. including the left-wing extremism affected districts. For drinking water and sanitation. On the social security front. 10. West Bengal has decided to provide 2. 14. 3 lakh to women SHGs at a subsidized rate of 7 per cent and an additional subsidy of 3 per cent to those who return it timely. 300 a month under the Indira Gandhi National Widow Pension Scheme and the Indira Gandhi National Disability Pension Scheme for BPL beneficiaries.294 to Rs. He maintained no jobs would be denied and the demand could have gone down because of good monsoon and the lack of capacity of the gram panchayats to spend the money demanded under the labour budget proposed by the States. Ramesh said he would be ensuring a private contribution of a similar amount and the interest earned will be used to help NGOs. the allocation has been revised downwards to Rs.915 crore next year. construction of rural roads. Both the schemes are covered under the National Social Assistance Programme. the government has increased the pension of widows and disabled persons from Rs. The Centre has decided to provide loans upto Rs. the allocation has been increased to Rs.158 crore to Rs. The 18 18 . though for current year. which is likely to be renamed as “Aajeevika” has been increased by 34 per cent from Rs.000 crore.745 crore. 2. The focus on cleanliness and providing toilets gained momentum in the light of the recent disclosure that about 50 per cent of the rural population practice open defecation that even affected their health. The government proposes to set up a Bharat Livelihoods foundation of India to support and scale up civil society initiatives in 170 tribal districts. 50 crore. Private trusts and organisations will contribute to the corpus to be set up with an initial government contribution of Rs. the allocation has been increased by over 10 per cent to Rs.914 crore in 2011-12 to Rs. 2. 8. allocation to the National Rural Livelihood Mission. Rural Housing For construction of rural houses under the Indira Aawas Yojana (IAY).razi@gmail.000 crore to Rs. (The author is Associate Professor.000 crore. Jamshedpur Women’s College. self-employment opportunities. 10. e-mail : shahin. the allocation for which has been enhanced by 37 per cent from Rs. 6. The allocation under the Pradhan Mantri Gram Sadak Yojana has been increased from] Kurukshetra April 2012 Drinking Water The budget concentrates on drinking water and sanitation. it will be implemented in 600 blocks of 150 districts. including through self-help groups (SHGs) and increased pension for widows and disabled persons. 2. 9.000 crore from Rs. Ramesh’s thrust for supply of quality water has been accepted and the budget has sanctioned the establishment of a water quality center in Kolkata at an estimated cost of Rs.447 crore in 2012-13 to meet the raised pension. 20. 11. Continued incentives to critical sectors emphasize the government’s focus on growth. 500 crore. Reader. Mr.

Some empirical assessments suggest that MGNREGS could help reduce rural poverty to 23 per cent during lean season. It is possible that the confidence of the government to commit funds was inspired by a higher growth rate B of economy. Others based on simple average minimum wage aggregates of all states estimated the national annual cost to be 1. Earlier wage employment programmes that sought to guarantee were constrained by the lack of budget funds. efore formalizing the Act..P. For smooth implementation.A Viewpoint Dr. 2004). N. government agencies estimated that full coverage of MGNREGS will cost Rs. and a case was made that MGNREGS will be sensitive to prevailing minimum wages in respective states (Shariff. S. assurances alone could be offered. the engineer is required by the law to visit the work site at least once in two weeks and the overseer is to visit every 19 Kurukshetra April 2012 19 . 400 billion (about US$ 9-10 billion) which was about 1 percent of GDP. and. Financial Performance: The Act stipulates that while implementing the projects. so instead of a legal guarantee.M Jawed Akthar. Abdul Azeez The budget allocation has not been increased on the basis of the increase in the number of districts under MGNREGS. The Table-1 shows budgetary allocation of funds reflecting a steady increase from 11300 crores in 2006-07 to 40100 crores in 2010-11. at annual cost of 1.Budgetary Allocation and its Utilization MGNREGS. However the following years the budgetary allocation has comedown which. This ratio should be applied preferably at the Gram Panchayat. labour cost and material cost should be in the ratio 60:40. 2005). the budgetary support to MGNREGS did not decline. will adversely affect the implementation of the MGNREGS.3 percent of GDP. but the significant point here is that even when the economy slowed down as a result of the global meltdown.7 per cent of GDP (Murgai and Ravallion. Block and District levels. of course.

54 1.6 2.10 10.89 30. In spite of this guideline.0 4. 5 and 10 billion each.39 Expenditure Administrative on Material Expenditure 30.7 2. except in the case of Uttar Pradesh.12 3. West Bengal and Bihar.09 3.nic If we look at the Table-2 we can understand that the percentage of MGNREGS fund on wage is higher than that of defined ratio. Andhra Pradesh and Rajasthan have distributed Rs.2 1.0 3.66 0. The share of expenditure on wage has increased from 66. The central government provides the funds for the wages and for 3/4th of the material costs. and a Kurukshetra April 2012 www.100 40. 120 in Rajasthan and Uttar Pradesh each. have used less than 50 percent. some.70 6.98 33. day.77 68.000 Percentage of GDP MGNREGS Exp. the overseer did not visit the work site as stipulated.63 53.0 10.78 Source: Budget Documents. State governments should devise a mechanism for transparent method of procurement of materials to be used under MGNREGA.4 4. State Expenditures and Household Wage Accruals: A state-wise break-up of utilization shows that while most states have managed to utilize over 55-60 percent of allocated funds. Government of India.8 9.1 5.000 33.02 0.2 1. and Arunachal Pradesh among others. the payment on wages was nearly 70 percent.71 52. 166 in Haryana.1 2. Jammu and Kashmir. where contingency expenses were slightly above 2 percent.6 1. material and administration in different states shows the same trend. Chhattisgarh. Data from the Rural Development Ministry shows that funds utilisation till June by Assam has improved 200 percent compared with the same period last year.28 0.39 percent in 2011-12. MGNREGS Exp. Tools and implements may be procured to enable the workers to execute the work. The cost of tools and implements may be booked under the material component of the project.36 76. 10-17 billion as wage payments followed by Uttar Pradesh. In the five states where data was available.42 MGNREGS Exp.Table 1: Financial Allocation of MGNREGS Year Budget Allocation (crore) 11300 12000 30000 39.69 and expenditure on administration of MGNREGS has some slight variation.9 2.33 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 0.5 1.64 23.21 percent in 200607 to 76.57 3.56 0. 150 in Kerala. Rs.54 69.48 3. and Rs. and the visits of the engineers were also very few and far in between. The actual percent of expenditure on wage.8 3.mgnrega.23 31.08 55. and that on material was around 30 percent.01 9.77 69.29 4. while with share of expenditure on material has been reduced 20 20 . material and other administrative expenditure in various years are shown the table-2 Table 2: Utilisation of Fund under MGNREGS (Percent) Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Expenditure on Wages 66.21 68. % of Total as % of Revenue as % of Fiscal Expenditure Receipts Deficit 1. Notwithstanding a considerable variation in MGNREGS wage which ranges between high levels of Rs.21 9. such as Maharashtra.100 40.55 41. The other contingency expenses were around 1 percent. Maharashtra’s utilisation has risen by 60 percent. with the utilized amounts ranging between Rs. as MGNREGS Exp. as % of Rural Development 46. A look at the total expenditures suggests that Madhya Pradesh.58 30.0 6.27 69. The expense on wages (skilled and unskilled).26 0.08 30.61 2. The State Government pays for ¼th of the material cost.

followed by Andhra Pradesh and Jharkhand. 1549 in Gujarat. These do not seem to be working too well. compelling farm workers to turn to the MGNREGS. the Gram Panchayat is responsible for all other works related to planning and implementation. Rs. the central government will set up a National Employment Guarantee Fund. Rs. Rs. Three states. which overlaps with the peak farm season. Jharkhand and Assam has dried up farm work. But with more job seekers. 75 percent of the cost of material of wages of skilled and semi21 21 Financial Implementation Issues: It is also surprising to find that this scheme has not been able to provide the employment that Kurukshetra April 2012 . one would have expected in poor states that has largely to do with implementation and funding. Rs.low of just over Rs. the Gram Sabha is given the power to conduct a regular social audit of individual schemes. the average accruals per household has been the highest at Rs. Rainfall has not been that good in some areas and some of the states have come together for an upward revision in the initial estimates. 1795 in Bihar. execution and supervision of projects as per the recommendations of Gram Sabha (village assembly). Rajasthan and Chhattisgarh. The two relatively backward states that are not performing well are Bihar and Uttar Pradesh. 2726 in Maharashtra. 3327 in Uttar Pradesh. The funding pattern as laid down in the Act specifies that the centre’s obligation would be to bear the cost on the items which includes the entire cost of wages of unskilled manual workers. Enrolments under MGNREGS. namely. The authority entrusted with the implementation as laid down indicates that a coordinated approach of different tiers of governments or vertical coordination is critical for successful implementation of the scheme. again stand out in terms of the annual size of wage accruals. for the purpose of funding and the implementation of this scheme. Three states have sought more funds under the government’s rural employment scheme to meet a surge in demand for jobs from farm hands affected by fluctuation in monsoon rains. 4032 in Chhattisgarh. 7733 in Rajasthan. are usually low during monsoons. Poor rainfall in Maharashtra. and Rs. 100 in many of the remaining states. As specified in the Act. For accountability and transparency purposes. Also. 6862 in Haryana. The responsibility of the gram panchayat is the identification. 5383 in Madhya Pradesh and Rs. Rs. The amount of wage accruals is a meagre of Rs. 1981 in West Bengal. Although there are various agencies involved for implementation of the scheme. Madhya Pradesh. forcing them to seek more funds from the centre. the horizontal coordination across departments for programme identification and execution of work through the panchayat assumes critical importance. Individual state governments will also set up their State Employment Guarantee Fund to make a matching contribution under this scheme. initiated primarily to ensure livelihood in lean farm seasons. The MGNREGA provides for a multi-tier structure of authority for implementation and monitoring of the scheme with specified functions and duties for each authority. these states have overshot their estimates of work demand under MGNREGS for the first three months of the current fiscal.

skilled workers. This implies an inbuilt structure of incentive for performance and disincentive for non-performance for the state government. the flow of resources from higher levels of the government to the Panchayats needs to be assured according to the demand. An accumulation of such projects is used to appropriate funds from the scheme resources earmarked through a budgetary process. administrative expenses towards salary of the officials at District and state levels appointed under MGNREGA. Funding was argued by Jean Dreze and others to be possible through improved tax administration and reforms. unemployment allowance payable in case the state government cannot provide wage employment on time. Aligarh. Abdul Azeez is Junior Research Fellow. or simply a resistance to disturbing the pre-existing power equations at the local level. The bureaucracy seems to be in the grips of some kind of fear and lethargy. administrative expenses as may be determined by the central government. In other words. Department of Economics. As it is a demand-based provisioning system. N. its implementation is exclusively done by the respective state governments. Thus. the demand based provisioning may be potentially regressive. The state governments bear the cost on the items includes 25 percent of the cost of material and wages of skilled and semi-skilled workers. suspicion surrounding its empowerment spin-off and changing balance of power and an overall climate of fiscal tightening and low spending. Often. It requires an in-depth understanding of region-specific labour demand and its seasonality so that a demandbased scheme of projects can be implemented at a frequency matching the demand for work 22 22 instead of relying on supply side provisioning. which will include inter alia. expenses of the national employment guarantee council. there is a need to design a monitoring mechanism by strengthening the institutional structure at the local level so that resources can be used optimally. Kurukshetra April 2012 . As it stands now. Failure to fulfill these requirements may result in an imprudent use of funds. Conclusion: A unique and radical programme MGNREGA requires time to be fully or even substantially streamlined. The main characteristic of the Scheme is sluggish and low spending rather than wastage and ‘leakages’. the salary and the allowances of the programme officer and his supporting staff and work-site facilities.P. Unfortunately. under the scheme funds will be released based on the annual work plan and budget proposal by the states. there is a sense of nervousness in the bureaucracy about increasing expenditure that has resulted in a narrow and parsimonious Scheme. administrative expenses of the State Employment Guarantee Council. Stringent conditionalities in fund release apart. Thus. as the inability to provide employment would require the state government to pay an unemployment allowance for which there is no contribution from the centre. he shall be entitled to a daily unemployment allowance which will be paid by the state government. abdulazeeznp@ gmail. UP. administratively managed by the Ministry of Rural Development. The states are expected to systematically make a claim over the allocated resources by planning MGNREGA work activities and turning them into projects. While MGNREGA is a ‘Centrally sponsored scheme’.com.S. It has been specified in the Act that “if an applicant under this Act is not provided such employment within 15 days of his application seeking employment”. if the party in power in the concerned state is different from the one ruling the Central Government. the states are unable to execute the programme efficiently due to the shortage of administrative and implementing personnel at the grassroots and sometimes due to interparty political differentials. yet the tax-GDP ratio has actually been falling. Aligarh Muslim University. This stems from pessimism of the developmental outcomes of this programme. [About the authors: Dr. it is necessary to evolve a clear mechanism of flow of funds as needed according to the demand rather than through the normal bureaucratic procedures. This would also require coordination between providing work and the provisioning of funding.M Jawed Akthar is Associate Professor. individual states will have to evolve a well coordinated approach to equate supply of employment in accordance to the demand. as the inability to provide employment on demand will impose the burden of compensation in the form of unemployment allowance on the state government. This becomes all the more important as there is no supply side selection of beneficiaries.

According to government sources. Studies have revealed that the cost intensive green revolution helped mainly the rich farmers while the small and marginal farmers did not receive the desired benefits and their conditions showed a decline.. Bihar. increased from 400 crores to 1000 crores. It is also important to mention that the first green revolution was limited to five crops with the main focus on wheat and was only limited to a few areas of the country.2 per cent. Jharkhand.. the increased production was due to focussed c ontd. Chattisgarh. Keeping this in view. according to official figures. Overall foodgrain production is estimated at 1032 lakh tonnes..9 per cent against an all-India increase of just 2.6 lakh tonnes. page 26. an increase of 19.8 per cent over the last year.Second Green Revolution: Eastern States to Lead The Way Dhurjati Mukherjee Budget allocation for Rashtriya Krishi Vikas Yojana (RKVVJ). eastern UP. Haryana and western Uttar Pradesh. West Bengal and Orissa with necessary financial allocations – to extend the green revolution. an increase of 11. the Finance Minister launched in 2010-11 the “bringing green revolution in eastern India programme (BGRED)” to focus on the eastern states  – comprising Assam. Reports reveal that rice production from the region is estimated at 562. 23 Kurukshetra April 2012 23 . mainly Punjab. T here has been much talk in recent times about the need for a second green revolution as the country will have to increase its agricultural output by more than 340 million tonnes by 2020 in the face of increasing demand by a growing population.

24 24 Kurukshetra April 2012 .

25 Kurukshetra April 2012 25 .

. Funds of Rs 200 crores have been aptly allocated for incentivizing research with rewards both for institutions and the research team responsible in such scientific breakthroughs. both of which are in heavy demand and output Even the Eleventh Plan emphasized on needs to be boosted up. which continued thereafter. It is thus in the fitness of things that in the  current budget the allocation for 2012-13 has been increased to Rs 1000 crores. the dryland areas would do well to level. page 23. resource allocation and utilization. a National Mission on Oilseeds modern technologies. concentrate on pulses and oilseeds production.  April 2012 .   watershed conservation of soil. was the proposal to organize 60. Then only can the second green and oil palm. water and management and soil health ecology on a substantive basis to enhance the productivity of the dryland areas. allocation for 2012-13 increasing production and has been increased to productivity is crucial to meet Rs 1000 crores. which is being discussed at every declining.000 “pulses programme and to The focus on agricultural and oilseed villages” in rainmake greater inroads in research has to be fieldfed areas   and provide an increasing production and oriented so as to ensure integrated intervention for efficient use of resources and productivity. part of  the Rashtriya Krishi Vikas Yojana (RKVVJ). considering the success of the programme and to make greater inroads in increasing production and productivity. asset building and site specific activities needed for improving the agronomy. in spite of the success achieved. The programme. water harvesting. With per capita availability of water revolution.   certain measures for taking agriculture to a higher trajectory of 4 per cent annual growth. There is also an imperative need to sustain For this to become a reality. The eastern region comprises 50 per cent of the total area under paddy in the current budget the cultivation and..        One may mention here that another important announcement made   two years back. the budget has the growth achieved in the green revolution rightly emphasized on making technology and areas by improving soil health and water 26 26 Kurukshetra However. can become a reality.    conservation and management and this has also been looked into by the Finance Minister.To be cont. The significant increase in production in the target region not only offset the decline in production in central and peninsular India but also contributed to the highest ever production of foodgrains. along with introduction of new varieties of seeds.   water harvesting.. as such. the productivity of paddy in eastern India is 2 tonnes per acre which is much lass than Punjab whose paddy production is almost around 4 tonnes per acre.. considering the country’s increasing food the success of the requirements. gained momentum in 201112 with an outlay of Rs 400 crores with focus on rice and wheat and strategic interventions relating to crop production. nutrient and knowledgeand Oil Palm  has been constituted to further based intervention developed for different agroincrease production and productivity of oil seeds climatic zones. It is now necessary to reach the small and medium farmers and make a dent to the whole of the agricultural sector. In this budget. Climate resilient agriculture is the need of the day and field research and experimentation are vital requirement at this juncture.

While there is unanimity now necessary for the government to encourage of opinion that the spread effect of the second and provide incentives for collaborative research green revolution must in the eastern states reach for developing products. (iii) encouraging farmers’ cooperatives in a big way as is being done in Gujarat and Maharashtra. conservation of soil. rainwater harvesting and watershed available to the small farmer at the grass root level. It is held on the subject. A. post-production losses and production of value(v) providing easy access to credit at affordable added products for consumers at an affordable rates. as developers of new crop varieties. bio-diesel etc. efficient use of resources and Finance Minister as the Former President. who constitute the major segment of the farming community and who have been rather neglected. The question of (vi) improving the reducing wastages and the The focus on agricultural incentive structure improvement of storage research has to be fieldand functioning of has been stressed by the oriented so as to ensure markets. need as this would result in the minimization of flowers. Certain other aspects like agri-marketing in a globalized environment.. transfer and extension. specially 2006. P. nutrient and specially in developing and also at the triennial knowledge-based intervention agro processing in a big conference of the Global developed for different way. the farthest corners. is a matter of great importance and help and support to this group is very vital. One may mention here some of the specific measures already outlined in the Plan in this regard: (i) improving water management. 27 27 . It is significant that the problems of small and marginal farmers. (ii) new technology for resource conservation. fruits. private sector participation agriculture and highlighted varieties of seeds. irrigation and water planning. that the private sector has Research at New Delhi played a significant role way back in November 9. modern would have to be ensured. frontier areas of research and development and technology Kurukshetra April 2012 Agricultural development could be possible through the following measures: (i) new and innovative technology for enhancing production. (iii) bridging the gap through effective extension at the grass root level. One cannot deny Forum on Agricultural agro-climatic zones. this in various forums technologies. J. (ii) reclaiming degraded land for cultivation and focusing on soil health. Since then several workshops have been hybrids. If necessary. some have rightly pointed out that it should ensure financial inclusion of the small and marginal farmers whose numbers continue to grow over the years. water and second element of the of Dr. realized ecology on a substantive basis the agricultural growth the potential of Indian along with introduction of new strategy. and price. and providers of high quality seeds. medicinal plants. Kalam. The renewed thrust in setting up of agro processing centres in the rural areas is an imperative (iv) diversifying into high-value outputs. food processing and diversification of agricultural products need also to be given attention.

7 increase in improved knowledge on production.      ensured is that returns from agriculture have to be monitored so that the farming community is not (The author is a freelance writer on put in a precarious situation and mounting debts developmental and environmental issues. the farmers income is far and marketing strategies. where implemented. C. where the average farm 54@gmail. April 2012 . more so with fertilizer and electricity rates on the increase? There is thus an imperative need to examine the question of subsidies and/or enhance the minimum support price for various crops.(iv) massive skill training and entrepreneurship development.5 times the average size of Indian farms. (dhurjatimukherjee here that even in Punjab. Rangarajan. value addition and marketing and early as 1982. In this connection. the farmers income is far less than the average salary of a Class IV employee of the government. that the second green revolution should be made possible in the India can definitely emerge as an agricultural rain-fed areas so as to improve the income levels power in the not-too-distant of the distressed farmers. positive be transformed keeping in of a Class IV employee steps are needed at this juncture. as production.  There is a belief. The higher rates would ensure better returns for farmers and there is no reason to raise a hue and cry about increased food process. geared up. The question thus arises is that how will farmers continue to be involved in cereal production with stagnant incomes.5 times the remove rural disparities and and improving their incomes average size of Indian farms. including development of future market. that a mere one per cent increase extending all types of help through adoption of in agricultural output led to a 0. value addition national income and it may be added that most and marketing. view the need to improve the of the government. the Indian Council for Agricultural Research (ICAR) with around 200 experiential learning units at 43 agricultural universities in different parts of the country should intensify requisite training activities to equip the farmer in the proper way. the average farm size is 3. It may be mentioned (development based in Kolkata). the eminent economist. and (vi) good marketing network. remove rural poverty or at through better infrastructure least bring it down steadily. not only at the level of industry but also at the level of farmers. There is an urgent need to overhaul socioto small and marginal farmers. (v) value addition of agricultural products. less than the average salary The face of rural India has to In such a scenario.8 acres which is 2. do not lead them to suicide. The main challenges obviously lie It may be mentioned here future if a better strategy is in reaching new technologies that even in Punjab.8 economic and farm policies to providing them necessary credit acres which is 2. to start with. the first and foremost of which living conditions of the masses is the strengthening the existing and for this diversification Krishi Vigyan Kendras (KVKs) and setting up such strategies have to be evolved to bring more Kendras in all the blocks of the country to reach value-addition while agricultural productivity is all sections of farmers in boosting production. One may conclude with an estimate facilitating adoption of improved knowledge on by Dr. part of this enhanced income obviously reached the grass root levels of rural India and benefited But the crucial thing that remains to be the farming 28 28 Kurukshetra size is 3.

cooking fuel.447 as against 25. As against 410 million MPI poor in 26 of the poorest African countries. M Poverty: According to NSS round [2004-05]. July 2010. MPI considers 10 sharp indicators.APPROACHES TOWARDS TWELTH FIVE YEAR PLAN NEED FOR FOCUSED ATTENTION Arpita Sharma India currently has the world’s largest food insecure population with more than 260 million people facing hunger and deprivation ahatma Gandhiji had a vision that India after its independence should achieve self-sufficiency of villages in which every one would have adequate food. This paper highlights poverty.578.8% rural population had monthly per capita expenditure of Rs. Let not history of India record that Mahatma Gandhiji brought political independence for India but the Government could not bring economic emancipation for rural poor.8. about 645 million people [55%] in India are poor. clothing. Madhya Pradesh. namely Education [child enrolment and years of schooling]. flooring and assets]. According to Multidimensional Poverty Index [MPI] worked out by UNDP & Oxford University. 29 Kurukshetra April 2012 29 . hunger. 41. proper hygienic and sanitation facilities and every person willing to work is provided gainful employment. Health [child mortality and nutrition] and Standard of living [electricity. child nutrition and food security in the country and suggests that Twelfth Plan [2012-17] should give focused attention to significantly ameliorate the deteriorating situation. drinking water. shelter. The MPI reveals a vivid spectrum of challenges facing the poorest households. Chhattisgarh. eight Indian States [Bihar.7% urban population having monthly per capita expenditure of Rs. Orissa. sanitation. Rajasthan. Jharkhand. Uttar Pradesh and West Bengal] have 421 million MPI poor.

the youngest. strong political will to commit. Secretary-General shows that economic growth is evident for the progress in China in reducing extreme poverty and raising living standards. Thailand from 50% in 1982 to 25% in 1986 and Viet Nam from 45% to 27% between 1990 and 2006. Experiences of successes in China. programs and budgetary action [v] reducing malnutrition calls for serious concern for poor. programs and budgetary allocations to yield expected outcomes and provide timely documented feedback to re-look policy. Thailand. for Sustainable Human Security and Peace India is committed to reduce hunger and poverty by half by 2015 child under-nutrition as a major contributory factor behind ‘persistent hunger’. the right to food campaign launched in 2001 focused its demand to address the structural roots of hunger since India’s commitments to tackle the problem of hunger and malnutrition are among the worst.5% as compared with 4% in Brazil and 6% in China.A global report on poverty eradication of the U. India currently has world’s largest food insecure population with more than 260 million people facing hunger and deprivation. Brazil from 18% in 1975 to 7% in 1989. India has 40% of the world’s underweight children and ranks 126 out of 177 countries in the UNDP Human Development Index and [ii] 20% of children under five-years-old are wasted [too thin for their age] due to acute under-nutrition and 48% were stunted [too short for their age] due to chronic under-nutrition and 70% of children between six months and 59 months were anaemic. which if not timely attended can cause lifelong harm to child’s health. Nigeria and Cameroon. With serious concern and commitment China reduced child under-nutrition from 25% to 8% between 1990 and 2002. Malnutrition among children under two years of age is one of the serious challenges to reduce hunger. which is almost double that of sub-Saharan Africa. the National Family Health Survey. India ranks 66 among 88 countries surveyed by the Washington-based International Food Policy Research Institute. According to Washington-based International Food Policy Research Institute India is among 29 countries that face ‘alarming’ situation of hunger. More than a third of all deaths in children aged five years or younger can be attributable to under-nutrition. India has the financial & human resources Kurukshetra April 2012 Child Nutrition: Despite the Integrated Child Development Scheme since early 1970s.N.1. whereas India is expected to be home to more than 300 million in poverty out of 900 million predicted to be in extreme poverty in 2015. Under the United Nation’s Millennium Development Goal No. Brazil. The percentage of children below five years of age who are underweight is 42. According to the Global Hunger Index [2008]. 2006. notes the child under-nutrition rate is 46%.The Global Hunger Index [2010] identified 30 30 . particularly among the most vulnerable children. Infancy deaths were 53 per 1000 live births in 2008. Vietnam and other countries suggest [i] according top priority to child nutrition with adequate investments in nutrition interventions and related critical areas impacting multiple deprivations [ii] targeting nutrition interventions to prevent and moderate under-nutrition and treat severe under-nutrition as a part of continuum of care for children. monitoring and evaluation of the effectiveness of policy. Manmohan Singh had once referred to under-nutrition as a ‘matter of national shame’. good governance and accountability [vi] Cash Transfer Scheme to be effective need to be supported by adequate staff and infrastructure for public sector health facilities. productivity and earning potential. the poorest and the socially-excluded [iii] strengthening community-based primary health care to facilitate wider and deeper coverage through communitybased frontline workers [iv] strong supervision. Hunger: In India. India comes below Sudan. Our Prime Minister Dr.

the GCF in agriculture and allied sectors relative to overall GDP has remained stagnant at around 2. Let the prevention and treatment of child under-nutrition in the first two years of life be a national development priority and let National Nutrition Week be celebrated in September every year to create mass awareness about the programs and exercise right to hold implementers accountable. Though it increased to 16. Food is unaffordable for a large number of the poor in India. To accelerate the process of farm development and achieve inclusive rural growth. once and for all. hunger. Scientific studies revealed that in 2001-02. A large amount of the subsidized food grains targeted at BPL households. and profitability of farming enterprise by creating enabling environment through enhancing annual public sector investment. the current system is beset with significant level of adulteration.0%. Using the NSS expenditure survey of 2004-05. child nutrition and food security. processing. the Expert Committee has estimated procurement & distribution of food not less than 63. Besides.30% in 2009-10. the challenge of child under-nutrition. Focused Attention: Chronic problems of rural poverty. Under the proposed legislation for food security to India’s teeming millions. 18.2% of PDS rice and 67% PDS wheat were diverted. agricultural extension. it is necessary to substantially increase food productivity & output to facilitate the estimated level of procurement. As a result the share of GCF in agriculture and allied sector in total GCF has remained in the range of 6.03% in 2007-08 and 19. Public. private and foreign investment should remedy the situation of investment shortage in agriculture and help transform a ‘negative subsidy regime’ into a ‘capital-intensive positive Agricultural 31 31 Food Security: Per capita availability of food grains and other essential food products in India is below the world average and significantly lower than in developed countries. integrated nutrient and pest management techniques. storage.6% to 8. storage and evolve transparent distribution well as administration and managerial capabilities to address. greenhouse technology. namely [i] accelerated investment in rural infrastructure to improve transport. Investment in agriculture would facilitate farmers’ access to frontier technology. policy should focus on critical areas. some APL households and other vulnerable groups find its way to the open market. rising to 73. mechanization and commercialization of agriculture.67% in 200809 [provisional] and estimated 20. among others. large-scale development of bio-diesel. production Kurukshetra April 2012 . arresting imbalance in the flow of farm credit.98 million tons.2% during 2004-05 to 2009-10. food processing. pilferage and corruption. create additional facilities for transport. need focused attention to significantly develop productivity.61 million tons in 2013-14. micro-irrigation systems. overall diversion was of 55% of the grain meant for the poor. legal framework for defining tenant farmers’ relationship with land in particular Investment: The Gross Capital Formation [GCF] in agriculture and allied sectors as a proportion to the GDP in the sector stagnated around 14% during 2004-05 to 2006-07.As about 800 million persons are sought to be covered under Food Security Act. weather and crop forecasting. The same problem is manifested in case of kerosene.5% to 3. communication. over 40% of all grain targeted at the poor did not reach the poor. farmto-market linkages. processing and marketing facilities [ii] establishing State of Art Agri-meteorology [iii] expanding irrigation and reclamation of wastelands [iv] strengthening agricultural education. computer-based modeling to track disease and pest incidence [vi] farm mechanization [vii] remote sensing technology.98 million tons by 2016-17 against the likely procurement of 57. In other words. research and extension services and capacity building of farmers to bridge the yield gap between the potential yields and actual yields at field level in rain-fed and irrigated farming systems [v] development and use of genetically engineered seeds. diesel and fertilizers.

commitment and be accountable to achieve expected goals district.7 24. Despite banking system has been achieving stipulated credit targets announced in the budgets since 2001-02 in absolute terms every year there have been significant disparities in credit flow between States.1 17.7 78. College of Agriculture. Pant University of Agriculture and Technology.5 08. of Agricultural Communication. Pantnagar – 263145 (Uttarakhand). households residing in hilly.2 0. in absence of appropriate legal frame work tenant farmers.9 05.7 58.0 18.1 43. tribal. Rural households should identify their financial and non-financial needs for income generating activities in rural farm and nonfarm sector and infrastructure and demand them from elected representatives.0 Below 0.5 60. However.5 18.3 34. desert.8 45.0 26.1 0.4 All India 35.8 47.261 crore.9 13. its impact on improving crop productivity and output has been low.6 05.8 72.0 07.D Research Scholar.3 06.0 hectare 10.0 55. B. Implementing agencies including banks should have serious concern.4 20. between districts and between villages. business and commercial houses in close coordination should accelerate their efforts to accomplish this task companies.5 75.2 50. The National Sample Survey [2003] estimated that the area under informal tenancy in India varies between 15% and 35% of the total farm area and 36% of the total households leasing land are landless laborers and 47. Dept.5 hectare.9 07.8 71.8 31.3 46.3 13.53. e-mail-sharmaarpita35@gmail.9 63.50% was disbursed between 2001-02 to 2009-10.1 11.Marketing Service regime’ and stimulate Indian producers to access global markets.2 State Madhya Maharashtra Orissa Punjab Tamil Nadu Uttar Pradesh West Bengal Landless Laborers 28. landless laborers.1 71.5 02. G.4 tenant farmers whose legal relationship with the landowners and the piece of land they cultivate has yet not been acknowledged through statutory legal framework to facilitate them to access credit from banks and insurance cover from insurance 32 32 (The author is Ph. workshops and conferences at district level. food security and rural infrastructure. Farm Credit: The credit flow to agriculture since 1970 till 2010 has been of the order of Rs.4 28.5% having land below 0. State and Union Government need to allocate adequate financial resources in their annual budgets to tackle issues of poverty.0 43.5 to 1. share croppers. Government.9 21.5 hectare 39.5 hectare 30. State and region-wise. Conclusion: Tenant Farmers: India has a large number of Pattern of Land Leased for Farming by Rural Households by Percentage State Andhra Arunachal Assam Bihar Chhatisgarh Gujarat Haryana Karnataka Kerala Landless Laborers 53.5 &1.1 Below 0. oral lessees.5 08.6 87. In fact. of which 81.3 03.0 hectare 08.0 14.3 23. child nutrition.5 Kurukshetra April 2012 . Information about the performance of each program should be made available to the public every month through local print and electronic media as also through seminars.3 69.2 08. hunger. Agricultural Universities and ICAR Institutes along with industrial.7 19. drought prone areas in particular do not have easy and reliable access to institutional credit.

The power thus generated can be used for meeting the requirements of the sugar mill and the surplus can be fed into the grid. The overall efficiency of energy use in cogeneration mode can be up to 85 per cent and above in some cases. With the technological innovations. with at least 50% of power for captive use. the installation of biomass cogeneration projects (excluding bagasse co-generation ) is being promoted in industry. There are several other industries such as paper and pulp.Electricity Through Cogeneration: A Promising Development Dr. Bagasse. The process employed here to generate power is called cogeneration which essentially implies the production of two forms of energy. petroleum. fertilizer. textile. R. Gargi Malik To meet the requirement of captive power and thermal energy. J. and a provision for the surplus power to be exported to the grid. not only producing sugar but also generating power as a by-product. electricity and heat. The total fuel consumption is significantly reduced when “cogeneration” or “combined heat and power” (CHP) is applied. Cogeneration or production of electricity in combination with another industrial process is not limited to sugar mills alone. a residue of crushed sugarcane used in sugar mills is the principal fuel used to raise steam in sugar mills. petrochemicals and food processing which require electrical as well as thermal energy for their operations and therefore can use cogeneration as a process. 33 Kurukshetra April 2012 33 . Meshram. the high pressure steam generated in boilers can in turn be used to rotate the turbo generator blades to produce electric current. T hink of a sugar mill.

Thus. of which they consume around 70 million tonnes for meeting captive requirements  of power and steam. Haryana. Optimum bagasse cogeneration benefits not only the sugar mills but also the sugarcane farmers as the value addition to their cane is enhanced and thus they can realise more money for it. oil or natural gas. there is considerable opportunity for the industrial sector to tap the potential for producing electricity and thermal energy in Kurukshetra April 2012 Bagasse Based Cogeneration As already explained. As fossil fuels are limited. Though possibilities of additional power generation through cogeneration in sugar industry has been known for long. as cheap power and fuel were abundantly available. Biomass Cogeneration programme in India is currently divided into two components (i) Bagasse based (ii) Non-Bagasse based . Indian sugarcane production during 2010-11 is estimated at 340 million tonnes. non-conventional power. or generate their own power largely through diesel generators and meet their thermal energy requirements through captive means mostly utilizing fossil fuels such as coal. Tamil Nadu. where price of fossil fuels is shooting up and there is shortage and nonavailability of coal. they either buy power from the State Electricity Boards.In the present scenario. The Ministry of New and Renewable Energy is promoting cogeneration through various incentive based schemes. At the same time. Today. it would be appropriate to use non-conventional energy sources including biomass resources such as crop residues and agro-industrial wastes for generation of energy in the industries mainly through biomass gasification technology for meeting their total/partial requirements for both electrical and thermal energy. While bagasse cogeneration is essentially sugar mills oriented non-bagasse biomass cogeneration can be used in biomass industry. Indian efforts for promotion of bagasse cogeneration started with two pilot projects taken up in cooperative sugar mills in Tamil Nadu in 198889 for generation of surplus power and feeding it to the grid. Industrial co-generation has in the past not received adequate attention. India’s 527 working sugar mills crush around 240 million tonnes of cane per year and generate 80 million tonnes of wet bagasse (50% moisture). the bagasse based cogeneration is mainly centred in sugar mills. with increasing tariffs.  Punjab. and have adverse environmental impact. More than 200 MW of projects in about 20 private sector sugar mills are under construction. after announcement of programme on bagasse based cogeneration by the Government. but their usage started in a significant manner only after 1994. 34 34 . The thrust on distributed generation and increasing awareness for cutting green house gases emissions increases the need of processes like cogeneration. electricity production through cogeneration in sugar mills in India  is an important avenue for supplying low cost. Karnataka. and unreliable supply of grid power. Bihar. A capacity of around 1854 MW of surplus power generation has so far been commissioned in 170 sugar mills in the states of Andhra Pradesh. cogeneration appears to be a promising development. Maharashtra. high quality stable power is required to attain the higher growth rate projected for this sector. Uttar Pradesh and Uttarakhand. However. India is the world’s second biggest producer of sugarcane. Power Cogeneration in Industries (Non-Bagasse) Programme  The industrial sector today consumes approximately 35% of total electricity generated in the country. Also it helps in controlling pollution from fossil fuels. Majority of industries in India  require both electrical and thermal energy.

caustic soda plants. training/orientation programmes. Operate. gas and un/semiutilized wastes/rejects like dolochar.) 35 35 New Initiatives for Promotion of Cogeneration in India BOOT (Build. (The First author is Scientist ‘F’. Press Information Bureau. The Ministry plans to extend this effort in the Cooperative/Public sector sugar mills in the states of Karnataka. To meet the requirement of captive power and thermal energy. and the second author is Assistant Director. fertilizer plants. This model has advantage in terms of non-requirement of equity and loans by cooperative sugar mills and nil liability to repay and limited risks.  New Delhi. Gujarat & Uttar Pradesh. etc. etc. technology validation. In particular. co-generation projects based on conventional fuels such as coal. oil. Own. distilleries. Boiler Modification in Cooperative Sugar Mills: A number of recently installed cooperative sugar mills have already employed the configurations to enable them to undertake cogeneration power projects with minimum investment through modification of existing boiler and matching turbine. This has increased the use of nonconventional energy sources and conserves the use of fossil fuels such as coal. and a provision for the surplus power to be exported to the grid. oil and natural gas. textile mills. Ministry of New & Renewable Energy. The promotional schemes also provide for Grants-in-Aid to State Nodal Agencies. workshops. industry-wise sectoral studies and performance monitoring & evaluation. can also be installed in industry for meeting their power and energy requirements. paper and pulp industry. lignite. Furthermore. The cogeneration plant and assets after BOOT period are to be handed over to cooperative sugar mills. In this case. (PIB Feature). NGOs and other concerned institutions for organizing seminars.  BOOT model projects in 12 Co-operative Public sector sugars mills in Tamil Nadu of aggregate capacity 180 MW and BOOT model cogeneration projects in two cooperative sugar mills of  Maharashtra  of total capacity 80 MW are under implementation. petrochemical plants. etc. Transfer) Model Cogeneration Projects in Cooperative Sugar Mills:Provision for Central Financial Assistance has been made for bagasse cogeneration projects taken up through BOOT model in cooperative sector sugar mills set up by Special Purpose Vehicle or an Independent Power Producer. there is significant potential in breweries. the installation of biomass cogeneration projects (excluding bagasse cogeneration) is   being promoted in industry. plant with concurrent modernisation is done by BOOT developers. solvent extraction units. the investment in cogeneration power Kurukshetra April 2012 . rice mills. during the next two to three years. Ministry of New and Renewable Energy has modified the scheme for providing Central Financial Assistance for boiler upgradation of cogeneration project in such sugar mills. The incentive based schemes and the technical support to the industry by the Ministry of New and Renewable Energy for installing cogeneration based projects is expected to give a big push to the non-conventional energy programme during the twelfth Plan Period. strategic studies. with at least 50% of power for captive use.the co-generation mode. coal rejects and refinery mud. Use of maximum of 25% conventional fuels has been allowed in such projects. New Delhi. Andhra Pradesh. The Ministry of New and Renewable Energy has supported the BOOT model projects in  Maharashtra  and Tamil Nadu.

the extent to which the objectives of PBRs are consistent with beneficiaries. This culture may lead to cultural shallowness and exploitation of ecology as a result of capitalistic market relations. how economically resources are converted to results and how it provided food security to tribals in Wayanad. and the spread of a uniform materialistic mass culture.. Critics have pointed to the irreversible disruption of traditional societies. In traditional societies people are more in tune with their potentialities in natural environment which would balance their needs and wishes.e.FROM THE GROUND People’s Biodiversity Register and Tapping Indigenous Knowledge : A Case Study From Wayanad Dr. conserve. It analyses an institutional innovation.. Raju Narayana Swamy cosystem people’ depend directly on natural resources for their livelihood. the extent to which the PBRs objectives are achieved and Efficiency i. their life styles. Effectiveness. or manage resources which they have been traditionally protecting and conserving for sustainable use. Indigenous knowledge is an integral dimension of all societies but is more intact in areas. the People’s Biodiversity Register. such as high-altitude remote Wayanad areas. The desirability for economic growth is undisputed. within the context of the Wayanad mountain system.e. 36 36 Kurukshetra April 2012 . There is a strong Malthusian movement which stresses that continued economic growth will disturb the balance of nature. i. Their rights include the right to protect. aiming at collective management of traditional knowledge and biodiversity conservation. where isolation have acted as barrier to outside forces for a long period. ultimately leading to ecological catastrophes. we discuss the scope for integrating indigenous knowledge and conventional ecological science for resolving biodiversity conservation-development conflicts..e. In our analysis. The key evaluation criteria used in the framework includes: E Relevance i.

Habitat fragmentation and loss in areas of high endemism are considered to be the major cause for the extinction of species worldwide. National laws. tended to focus on multinational corporate penetration or foreign direct investment (John. fail to compete in the global economy. et. political. Perrings & Jon. Research focussing in the 1980s. The functions include biogeochemical. The value of biological diversity thus lies in the value of the ecological services supported by the interaction 37 37 . such as drinking water supply. The first is the destruction and fragmentation of habitat associated with the expansion of mining. Shandra. species sustain those crucial services. M. United Nations Environment Programme’s Global Biodiversity Assessment proposes that Biodiversity represents the very foundation of human existence. Inequality of income and resource distribution have received much of the blame for environmental degradation. their activities will continue to cause degradation to biodiversity. These regional economies become the principal basis for participation in the global network in which the logics of capital and technology guide the economic. marine. and they have also not established networks of cooperation in the regionbased companies. The most important environment centric and anthropocentric reasons for conserving biological diversity is the role played by micro-organisms. The economy as a part of its life-supporting environment. the boundaries of states with respect to economic matters have begun to give way to economic markets. inter alia.. economic and political institutions and government policies are central to many recent explanations of biodiversity loss(Alexander.In this harmonized political-economic milieu. forestry and 1994). terrestrial. Biodiversity Ecological and genetic multiplicity together make the foundation of existence. but also on services generated by ecosystems. depends not only on the inputs of energy and natural resources for production and consumption. Wood. Here the type of environmental crisis is shaped by the capital. biodiversity protects ecosystem resilience by understanding the provision of ecosystem services over a range of environmental conditions. soil erosion and other geomorphological processes(Charles. The convention on Biological Diversity in Article 2 defines it as the variability among living organisms from all sources including. aquatic ecosystems and the ecological complexes of which they are the members. cultural and institutional flows of human activity to rationalize social and ecological relations. Our study follows in this way. A multiplicity of organisms underpins the ecological life-support functions that enable human societies to exist. There are three processes that lie in global biodiversity loss. this includes diversity within species. The second is the introduction of species. Perrings). under the impulse of state and business elites. economic exchanges and unequal power relations between rich and poor nations are detrimental to the poor nations of the world. If human societies do not recognize their place in the overall systems. Lovett). Its effects include the deletion of indigenous species through predation or competition. thereby reducing the environmental support on which human welfare depends upon (see the figure below:). recycling of nutrients. 2010). Regions. The ecological impact of biodiversity loss depends on the link between the species and the functions of the system(Charles. In essence rich nations become wealthy by exploiting the cheap labour and resources of poor nations. between species and of ecosystems(World Resources. The dependency perspective argues that international Kurukshetra April 2012 Biodiversity conservation From an ecological perspective. plants and animals in providing ecological services of value to humanity. Being parts of ecosystems. 2000). generation of soils. genetic alteration of indigenous species through hybridization and the alteration of ecosystem structure. hydrological and nutrient cycles.

the Extension of Provisions of Panchayati Raj to Scheduled Areas Act (PESA). With this in view it provides for the establishment of a National Biodiversity Authority (NBA). encouraging inter-community transfer of knowledge. The district lies at a height of 700-2100 Kurukshetra April 2012 . 2003). 1994). Effectiveness.201. which came about gradually during the 1970s with increasing awareness of an extinction wave that was threatening as a consequence of human populations’ growth and increasing intensity of environmental modifications (Yrjo Haila & Jari. the extent to which the objectives of PBRs are consistent with beneficiaries and donor’s policies. The following section will discuss about its implementation in Wayanad district in Kerala. Biological Diversity aims to promote conservation. how economically resources are converted to results and how it provided food security to tribals in Wayanad. populations and communities of the natural environment. State Biodiversity Boards (SBB) and Biodiversity Management Committees (BMC) at the level of Panchayats (gram. the extent to which the PBRs objectives are achieved and Efficiency i. The Biological Diversity Act included provisions for the constitution of Biodiversity Management Committees. Wayanad district in northern Kerala is selected for the analysis. sustainable use and equitable sharing of benefits of India’s biodiversity resources. the Biological Diversity Act 2002 and more recently the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006. rewarding and promoting the use of traditional knowledge.e. It was considered necessary tool for recognising the range of local knowledge. Two approaches are identified to overcome the problem-complex. zilla) municipalities and corporations. The conservation discourse on biodiversity originated with the notion of a diversity crisis. and the value of biodiversity loss reflects the sensitivity of ecological services of both the depletion and the deletion of species (Charles.e. skills. & others. taluk. The main function of the BMC is to prepare People’s Biological Register consulting with local people. Community-based Management Important initiatives taken by the government of India to secure natural resources include 38 38 Wayanad district Considering the ecological importance. The key evaluation criteria used in the framework includes: Relevance i.. It strongly believes that community register could be used to protect biodiversity and local knowledge. domesticated stocks etc on public and private lands. One is the internal perspective approach or the indigenous knowledge-based approach where nature. Kouki. techniques and conservation practices.between the organisms.. Perrings & others.). A simplistic view of integrated management would be to identify ‘key’ interventions to the concept of keystone species enabling environmental and socio-economic benefits simultaneously. resources and livelihood have been viewed by the indigenous/traditional communities. including habitats. Joint Forest Management Programme since 1991. K. i. The other is the conventional scientific approach or global economic and environmental world-view referred to as the ‘external perspective’ approach or top-down approach (Rao..S. The people’s Biodiversity Register Project (PBRP) was commenced as a pilot project in Kerala in 1997 (The detailed statistics on People’s Biodiversity Register in Kerala is given in appendix 1). 1996.e. p. 1992.

93 percent).69 percent) and others (0.61 percent). In the early periods ragi. The food security of Wayanad’s tribal people is in a threatened situation because of the disappearance of many species of plants. It was with the help of tribal promoters working in the consecutive hamlets that researcher was able to collect information regarding their interaction with the forest. Now cash crop cultivation is 39 39 Income for all the sample households where obtained from agricultural wage labour and Mahatma Gandhi National Rural Employment Kurukshetra April 2012 . Its geographical area is 2131 sq. The main reason of poverty and malnutritioninduced diseases among the tribal people is depletion of biodiversity. Mullu Kuruman (17. on the north-eastern part of Kerala. paddy. Wayanad has the highest concentration of tribals. The study included a subset of households who make use of forest resources.51 percent). Major communities in Wayanad are Paniyas (44. Adiyan (7. agricultural labourers and forest dependents. Details of items collected from forest are given below. These tribal communities mainly are marginal farmers. The overall dependence on forest by the sample households for various purposes is given in Table 1. animals and fishes which they collect from their home gardens and surroundings. During the discussion it was found that most of the households are afraid of exposing the details about their resource collection from the forest. Table 2 Items collected from forest NTFP collected for sale Wild pepper Wild turmeric Kundirikkam Asparagus Kurumthotti Kakkukai Honey Wild bitter guard Tuber items Venni Nooran Vellan Fruits/vegetables Gooseberries Wild jack fruit Bamboo seed Guava Mushroom Fish Source: Survey data Indigenous Knowledge and Biodiversity conservation The shrinking of the flora and fauna have resulted in the retreat of medicinal knowledge and use of these natural resources by the adivasis. The population of the district is 7. The NTFP collected from forest for sale mainly includes medicinal herbs.80.38 percent). Kurichya (17.77 percent). constituting (136062) 17. Kattunaickan (9. especially forest officials and hence are reluctant to reveal the facts. Deforestation and alienation of adivasi land have reduced the use of traditional medicinal plants and other resources by these people. Group discussions were conducted with households near to and inside the forest.619. Location of the households near to or inside the forest area is one of the important factor.43 percent of the total tribal population in Kerala. km(Profile of the district given in appendix 2). little millets. Urali Kuruman (2. vegetables and tubers were cultivated by them. which is hypothesized to influence the extent of dependence.m above sea level. Interviews with tribal promoters revealed that they are afraid of officials. Table 1 Purpose of forest visits Particulars of resources collected Collection of fuelwood Collection of NTFP for sale Collection of tubers/fruits/leaves Fishing Fodder Bamboo (for own purpose or for sale) Source: Survey Guarantee Programme. MGNREGP works in Thirunelli were mainly fencing and forestry works.10 percent). Edible items collected are taken home for food. Three hamlets were purposively selected from Thirunelli panchayat.

The institutional framework for generating the structured information as a part of the PBR process is as follows: In Wayanad.. Many of them have developed resistance to insecticides. tribal folks etc. they now suffer malnutrition and food insecurity. R. Most systematic attempt in the preparation of PBRs at the national level in India was initiated in 1996-98 by Biodiversity Conservation Prioritization Programme sponsored by World Wide Fund for Nature (WWF).). PBRs is in an experimental phase. Excessive use of chemical fertilisers had led to the disappearance of many fish and indigenous plant varieties. enhancement and sustainable and equitable use of agro-biodiversity and genetic wealth through the active involvement of tribal communities in Wayanad. The PBRs helped the tribal people to identify two areas like ‘local heritage sites’ that represent valuable species and people holding traditional ecological knowledge sites. especially for the indigenous people (Madhavan Nair. Large-scale proliferations of pests that attack crops were found. The information may be purely orally transmitted or contained in palm leaf manuscripts. People’s Biodiversity Registers (PBRs) These are registers that document biodiversity and bioresources and its associated knowledge of tribal and rural communities of the region. uses and management of living resources. One pilot project has been completed in Ernakulam District(Kerala). The program’s name was changed from “Community” to “People’s” Biodiversity Register (PBR) in 1995 to reflect knowledge shared freely among community members. 40 40 . 2002). An estimated fifteen percent of the plant diversity in the district is highly threatened. Tribal women who earn their daily wages as labourers in paddy fields are out of work because of the conversion of paddy fields to coconut. The PBR program organises information in the domain of folk science on the status. The Community Agro-biodiversity Centre (CAbC) of the M.prevalent in Wayanad. The variables shaping collective action of PBRs in Wayanad are as follows: Kurukshetra April 2012 Community Biodiversity Register (CBR) The CBR program was originated with the concept of Community Register launched by an NGO. The People’s Biodiversity Register features the transformation of traditional knowledge into recorded information as a result of the communication between local knowledge holders and bureaucrats. There is a marked reduction in the availability of fish. banana and areca plantations. and local knowledge holders and facilitators. These registers prepared by the local communities with technical support of the CAbC in Wayanad. The social consequences of the depletion of forest cover and paddy fields in Wayanad is obvious. The state plan for Kerala has also actively promoted documentation of local knowledge relating to biodiversity in People’s Biodiversity Registers (PBRs). Two other projects at Panchayat level has been initiated by the Tropical Botanic Garden Research Institute1 and the Kerala Forest Research Institute. This information is available with the people who deal with living resources as part of their daily subsistence activities as graziers.Swaminadhan Research Foundation (MSSRF) undertakes activities related to conservation. Many traditional paddy varieties have disappeared. These register can be used to promote sustainable management of natural resources and disport claims of communities and individuals about generic resources and knowledge about their use (Pons. Earlier many paddy varieties were there. It focussed on documenting community based knowledge of medicinal plants and their uses. provide information on the patterns of natural resource use. But now only five varieties are cultivated. crab and forest products which had given a strong immune system to the tribal people. FRLHT in 1995. The documentation of biological resources and associated traditional knowledge (TK) in India are strongly supported by the state governments and other public institutions.S. The impoverishment of Wayanad’s biodiversity. that too only by the Kurichya community. is a crucial issue. 2003). Batugal & Jeffrey Oliver (eds. With the reduction of proper food supply.

‘Ecology is for the People: A Methodology Manual for People’s Biodiversity Register’. There is lack of concrete examples where PBRs has lead to meaningful benefits for tribes.Biodiversity Manangement Committee Paniya tribal population. Centre for Ecological Sciences & Agharkar Research Institute. & others (2006). Processing their knowledge about specimens. this is an instrumental in preparing People’s Biodiversity Registers (PBRs) in Wayanad. To quote the activities of CAbC. National Workshop on People’s Biodiversity Register. e-mail : narayan5@ias. of Kerala. The tribals have knowledge about different leafy vegetables and herbal medicines. rich in biodiversity contributes household food security of tribal communities. Gadgil.Table 3 Institutional framework of People’s Biodiversity Registers Institution Supervisory agency Implementing agency Country NBA MoEF. SBB-State Biodiversity Boards. formed as a committee. Kattunaikens etc. Chennai. among the knowledgeable Kurukshetra April 2012 . tubours etc for food. Gender perspectives were internalized in the process of forming groups. Women are involved with the collection of leafy vegetables. in the documentation of species and their associated knowledge.nic. The CAbC collected some of these traditional varieties. The management of such chronicled documents as the People’s Biodiversity Register was discussed with the stakeholders and institutionalized with the help of formal or informal institutions at the village level. This knowledge is transferred to PBRs through NGO to state’s lowest level. BMC. The PBRs is a result of interface between the NGO facilitators and the expert knowledge holders of tribal communities like the Paniyas. Kurichyas. into valuable food items is the monopoly of women. panchayat. and trained in preparation of inventories. GoI State SBB District ZP-BMC study group Taluk Local body Village/ward Village or Ward BMC study group Educational institutions & CBOs selected by BMVC TP-BMC Panchayat/ study group Municipality TP-BMC Educational institution & CBOs selected by BMC Nodal agency Educational designated by institution SBB designed by ZP_BMC TSG TSG Technical support agencies Technical support group (TSG) TSG Local education Local science/ institutions educational institutions Source: Madhav. With respect to gender. (The author is Senior IAS Officer and is currently Secretary to Govt. A core of village volunteers were selected. The reputation in this regard is attached to the individual reputation of the NGO facilitators. women play a key role in the management of food species. NBA-National Biodiversity Authority. 22-23rd June. multiplied them and redistributed to interested 41 41 Collective Action in Wayanad The forest of Wayanad. The trust of tribal people in the representatives of the NGO contributes towards its reputation in the long run.

and the anode is the positive electrode. acting upon solar panels. Even if all the ultra supercritical power projects are brought online. friction. as in the case of lightening. which could be the copper wire. pressure and friction tend to be either very small--the microvolt output of a thermistor when exposed to heat. Sources and discovery of electricity There are six basic sources used for generating electricity. He thought that electricity was of animal origin and could be found only in living tissues. oil. light.Paramasivan C urrently. magnetism and chemical action. gas or nuclear power. There is a demand supply gap in energy of 8% and peak power of 12. The Daniell cell was a great improvement over the existing technology used in the early days of battery development.Electricity from fruits and vegetables S. The electrons flow from the cathode to the anode through the electrolytes (juice). India has a gap in its energy supply and with further economic growth this is likely to continue into the future. dissecting. These chemicals act as electrolytes and then undergo electrolysis. This process generates electricity just the same way as a voltaic battery. pressure. whether hydroelectric or fuelled by coal. Power generators. A later variant of the Daniell cell called the gravity cell or crowfoot cell was invented in the 1860s by a Frenchman named Callaud and became a popular choice for electrical telegraphy. A few years later. in 1800 Alessandro Volta discovered that electricity could be produced through inorganic means. or the equally small output of a crystal microphone when subjected to sound pressure--or uncontrollable. citric acid and NADH (chemical that generates cellular energy). Chemical action in the form of batteries is both the oldest means of producing electrical current.6% for the last decade and this gap has widened in the last 3 years. and that only 44% of rural households are actually electrified. It is estimated that only about 80% of villages in India are electrified. Light. is slowly gaining momentum. In 1791 Luigi Galvani discovered electrical activity in the nerves of the frogs that he was 42 42 Kurukshetra April 2012 . all use magnetism as the actual means of electricity generation.Jothimani. caused by friction. fruits contain substances such as ascorbic acid. This situation is particularly exacerbated at the rural level. M. Electrolysis means a chemical change produced by passing electric current through an electrolyte. which could be the zinc wire. but has yet to make great inroads in commercial electricity production because of its cost. The cathode is the negative electrode. They are heat. Of these. the gap is likely to persist by the time they are implemented owing to higher energy intensity of the economy due to industrialisation and the very low Indian per capita electricity consumption. and has had a great impact on our modern way of life. contributing by far the largest portion of electrical production worldwide. Like electrolytic solutions in ordinary batteries. Electricity generated directly by heat. magnetism is the most important.Marimuthu and M. Acidic foods can chemically generate an electric current.

But if two different metals (Copper and Zinc) are inserted into fruits. Being fragile.India is the largest producer of fruits and the second largest producer of vegetables in the world. As a conductive solution. Copper metal thus moves from the copper electrode to the zinc electrode (eventually completely coating it) in fruit juice. other fruits and vegetables also contain juices rich in ions and are therefore good electrical conductors. Copper. The biological process of ripening also reduces the shelf life of the produce. it is that copper plus zinc plus orange juice as the conductive electrolyte make a battery. The acid takes electrons from the metal wire which is inserted in the fruit. calculators and to glow LED/LCD lamps. The lemon battery works well because the lemon juice is acidic. The net result is that copper dissolves from the copper electrode and deposits on the zinc electrode. But the zinc has a stronger propensity to go into solution so it drives the copper back out of solution. This is what any battery is: two different metals with a conductive solution between them. They dissociate into particles of opposite charges. The fruit juice is similar with metals and acids: a small amount of metal dissolves into solution and then there is an equilibrium. When the copper dissolves into solution it leaves some of its electrons behind on the copper electrode and dissolves into solution as a positively charged ion. All this results show that the post harvest losses of about 25 – 40 % of production. fruits and vegetables can be used for operating household LED clock. So it’s not that the orange “produces” electricity. the annual production of fruits and vegetables in the country accounted for 18% of the total agricultural production. As you may know. The acidic juice allows a small amount of zinc and copper to dissolve in solution. base or salt solution. fruit & vegetables are prone to damage by virtue of ambient conditions Deterioration also occurs during inevitable transportation from regional and clustered cultivation area to consumption centres. which become ions when dissolved in water. Lime and Orange. must travel to the zinc electrode through the wire. This movement of charge helps in conducting or even generating electricity. This movement of electrons is electrical current. At 180 Million MT/year in 2006-07. Try the same setup with other types of solutions. Acid in the fruits reacts with water and generates Hydrogen which is in ionic form and is positively charged (it lacks electrons). the more active metal (zinc) bumps the more noble metal (copper) out of fruit solution. It is the ions that render the water conductive to electricity. Citrus Fruit Acidic or Citrus fruits are best to conduct or even generate electricity. leading to low per capita availability of fruits and vegetables in India. As a matter of fact. It is expected to touch 300 Million tonnes by 2011. 43 Kurukshetra April 2012 43 . any electrolyte whether it is an acid. but those electrons that don’t travel through the solution with the copper ions. Examples include Grape Fruit. like all metals (and all materials) has electrons. During the higher production period with less demand. the positive ions migrate to the negative electrode and vice versa for the negative ions.

aroma. Thoothukudi District.30 0. and skin difficult to swallow) affect the quantum of electricity produced from fruits and vegetables. and elasticity. colour. This is referred to as the electrodes being polarized.64 0. The least was the red potato with 0 micro amps. firmness.0 to 4. Far apart. The small experiments that follow are intended to interest these students in the study of chemistry and electrical phenomena. The electrodes undergo chemical reactions that block the flow of electricity. Vallanadu – 628 252. While listening to lessons about chemistry.5 ohms.acidic fruits and 44 44 . diameter. sugars. meltiness.0 ohms. Therefore. titratable acidity.26 Electrodes Copper/ Steel 0.25 0.Like any battery. To achieve a longer life and higher voltages and current flows. lycopene. Many of these demonstrations are easily adapted to various configurations and each can be done independently or as part of a full curriculum. it is necessary to use electrolytes better suited for the purpose.23 0. pigments. mealiness. pH. together with candy. TamilNadu. Agricultural University.37 0. lemon.33 0. The magnitude of electricity generated by the particular fruits / vegetables can be correlated with the concentration of principle chemical compounds present in it. the less the resistance rating.29 0. These simple and (it is hoped) interesting experiments can teach the fundamental concepts of electricity and chemistry without asking much of the student. and 12 aroma volatiles. aroma (overall aroma intensity. For resistance. it seemed that the more water in the fruit or vegetable. Chemical traits were dry matter weight.71 0.31 0.60 The fruit or vegetable that had the strongest current flow was definitely the lemon with 2 micro amps. It ranged from 10.29 Zinc/Copper 0. e-mail : subbiahjothimani@ gmail. many students may wonder why it was ever invented.26 0. Usually. the highest rating was the banana ranging from 28. vegetables seem to have a stronger current flow.75 0.73 0.29 0.30 0. Commercial batteries.0 to 30. the potato had the highest resistance rating with the probes close together with 6. The electromotive force diminishes and the battery stops working.27 0.34 0.31 0. The smallest rating with the probes far apart was the Kurukshetra April 2012 Electric potential (Volts) in various fruits and vegetables with different metals of electrodes Fruits Zinc/Steel Apple Orange Carrot Banana Lime Tomato Lemon Potato Cucumber 0.70 0.0 ohms.70 0. juiciness. and the contents of soluble solids.0 to 19. alkaloids and other pharmaceutical chemicals etc present in the fruits and vegetables.0 ohms. batteries made from fruits and vegetables have a limited life. This is because water is a conductor. A panel of trained assessors quantified sensory attributes: flavour (sweetness and sourness).82 0.0 to 9. (The authors are from Agricultural College and Research Institute.30 0. The smallest rating with the probes close together was the banana with a rating of 3.29 0.39 0. In terms of the resistance measured in ohms. Killikulam. the hydrogen produces at the copper electrode and the zinc electrode acquires deposits of oxides which act as a barrier between the metal and the electrolyte. the magnitude of electricity can be used to quantify / qualify the organic compounds such as organic acids. citrus fruit. and pharmaceutical aromas) and texture (firmness. Physical traits such as fruit weight.76 0. contain chemicals with an affinity for hydrogen which combine with the hydrogen before it can polarize the electrodes. carotene. if it was really ever necessary to invent it and if the world would be better off without it. apart from their normal electrolyte.

Gomathi India signed and ratified the Protocol in August. Climate Change is a broader term that refers to long-term changes in climate. So our country has introduced 45 Kurukshetra April 2012 45 . The impacts of climate change are not evenly distributed – the poorest countries and people will suffer earliest and most.CARBON CREDIT AN ENVIRONMENT MANTRA Dr. and features of some of our national parks may be permanently altered. R. crop yields. Rapid industrial growth. Changing regional climate could alter forests. humans and the earth. We need to learn how to conserve our use of fossil fuels to minimize carbon dioxide production. And if and when the damages appear it will be too late to reverse the process. and G many types of ecosystems. increased energy consumption. increased carbon dioxide and other green house gas emission. Deserts may expand into existing range lands. Rising global temperatures are expected to raise sea level. It could also affect human health. 2002 and has emerged as a world leader in reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs). This will slow down the effects of global warming. Thus we are forced to look a long way ahead. S. and change precipitation and other local climate conditions. lobal Warming is the increase of the Earth’s average surface temperature due to a buildup of greenhouse gases in the atmosphere. animals. India is the second largest provider of CDM project and Certified Emission Reductions (CERs) to annexure I countries. India is the beneficiary as far as carbon credits is concerned and is also in trading of carbon product through India’s multi-commodity exchange. and water supplies. Global warming is affecting plants. Amsaveni Mrs. animals. including average temperature and precipitation. It may be caused due to climate change.

either by investing in cleaner machinery and practices or by purchasing emission from another operator who already has excess capacity. Individual countries have their own reduction targets outlined in Annex B of the Kyoto Protocol.2%. on 11th December 1997. an operator can seek out the most cost effective way of reducing its emissions. this cap requires countries to reduce their emissions 5. The Countries (those listed in Annex I) are legally bound to reduce man-made green house gases emissions by approximately 5. Credits can be used between trading partners and around the world to finance carbon reduction schemes. Kyotoprotocol In India India signed and approved the Protocol in the year of August. Typically. The main aim of Kyoto protocol is to make Stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent air pollution interference with the climate system. By permitting allowances to be bought and sold. which have accumulated emissions over a long period of time. There are two types of market in carbon credit: l Compliance l Voluntary global warming and urged to reduce the emission of harmful gases that lead to green house gas that resulting to global warming and many countries came together and signed an agreement named as the Kyoto protocol. It was adopted in Kyoto.2% below their  1990 baseline over the 2008 to 2012 period. This carbon off setters purchase credits from an investment fund or a carbon development company that has accumulated credits from individual projects. On average. The primary goal is to reduce emission of green house gases. There are many companies that sell carbon credits to commercial and individual customers interested in lowering their carbon footprint on a voluntary basis. The quality of the credits is partly based on the validation process and partly on the sophistication of the fund or development company that acts as the sponsor to the carbon project.carbon credit trading method for reducing global warming. The types of Kyoto mechanisms are: l l l Clean Development Mechanism trading Emissions Joint implementation (JI) Market (Annexure I countries) Clean Development Mechanism CDM is a mechanism whereby an Annex I party may purchase emission reductions which arise from projects located in non-Annex I countries. Carbon Credit Carbon credit has emerged as an important instrument in the financial market. The carbon credits that are generated by a CDM Kurukshetra April 2012 Market (Non-Annexure countries) Kyoto Protocol A decade ago people started to realize the 46 46 . The major responsibility of curbing emission rests with the developed countries. Japan. Since India is exempted from the framework of the treaty. it is expected to gain from the protocol in terms of transfer of technology and related foreign investments. The Kyoto Protocol is a legally binding agreement that arose out of the United Nations Framework Concentration on Climate Change (UNFCCC) to tackle climate change through a reduction of green house gas emissions. They provide means to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. 2002. These credits can be exchanged between businesses and can be bought or sold at prevailing market prices in international markets. Carbon credits are key component of national and international emissions trading schemes. the reflection of which can be seen in the price. Kyoto Mechanism Kyoto is a ‘cap and trade’ system that imposes national caps on the emissions of Annex I countries. voluntary units have less value than the units sold through the rigorouslyvalidated Clean Development Mechanism.

opportunity for less developed countries under this framework  the mechanism leads to developed countries emitting more GHG inspite of their KYOTO caps. and provide for in off-grid carbon rural Emission Trading Emissions trading (ET) is a mechanism that enables countries with legally binding emissions targets to buy and sell emissions allowances among themselves. The cap (say 10. to nature and process of complexity involved. thus reinvesting it for higher growth. April 2012 l l No Technology Still Kurukshetra . CDM l Development of cleaner technologies leading Buyers l l l l l Environmental benefit due to lesser GHGs emission. timeframe may not assist long-term development strategies as the timeframe is foreseeable till 2012 only. The Buyers of CERs can be broadly classified into: l l l Compliance Carbon l source of foreign investment in developing countries which act as a catalyst in developing cleaner technology. the CDM may not provide incentives for financing long-term development projects and strategies. (Most projects developed with short term perspective).000 permits of 1 tones of carbon each). foreign players may dominate domestic industries for the incentives if CERs.g. The unit associated with JI is called an Emission Reduction Unit (ERU). and receive credit for the emission reductions or removals achieved through that project. Provide Reduce Funds (e. expressed in tones of CO2 equivalent l Additional Cdm Market The CDM market is like any other commodity market. Majority of the trading is done in the Primary market.: Carbon Fund of World Bank) Traders carbon funds for Emission reduction project implementation. Until future commitment periods are agreed. In simple terms Joint Implementation means transfer of  emissions reduction at the project level. Provide Boost employment sequestration. transfer from developed to developing countries (Due to low cost structure in developing countries. Under an emissions trading system. funds can be channelized into building or improving project.000 tones of carbon) is divided into transferable units (10. l CDM investment could affect national development strategies.project are termed Certified Emission Reductions (CERs). Joint Implementation (Ji) Joint implementation is a project-based mechanism by which one Annex I Party can invest in a project that reduces emissions or enhances sequestration in another Annex I Party. the quantity of emissions is fixed (often called a “cap”) and the right to emit becomes a tradable commodity. The secondary market is not as expanded as the primary mainly  because of the high volatility of the carbon prices. economic communities. development Demerits l l Provision Due of cheapest way of purchasing climate destroying right. possibly adversely affecting national decision making processes. Historically they are the culprits 47 47 l CDM Merits and Demerits of Carbon Credit Merits l l Better technologies for the company which is benefiting from generation of CERs. to sustainable development where countries have strategic advantage from now in the terms of pollution. poverty electricity.

cogeneration. Majority of projects selling carbon credits so far include renewable energy (such as wind power. From the year 2001. Incineration b. trailing only behind China.63%. Kurukshetra April 2012 (a. due to increased population & commercial development. 728 crores) and is expected to grow at a rate of around 20 to 25% in the next three to five years. the Indian solid waste management market is witnessing tremendous growth.000 crore over a period of time and Indian companies are expected to corner at least 10 per cent of the global market in the initial year . The carbon credits market is a liquid market as of now.500 crore to Rs 45.R. hydropower.Amsaveni is Associate Professor. e-mail : amsa_parthi@rediffmail. Coimbatore – 641 028. Anaerobic Digestion) (a. in Hindusthan College of Arts and Science. S.Gomathi is Research Scholar. the carbon market has captured the attention of Indian entrepreneurs. Around 225 Indian projects in the fields of biomass. Behind Nava India. Various processes/technologies available to reduce the amount of Municipal Solid Waste are as follows: l l Physical Conclusion The rising pressure on countries to address climate change has paved the way for the rise of a multimillion dollar international market for buying and selling emissions of greenhouse gases. second only to China’s 680. while China’s is 58. and Mrs. There are no Sanitary Landfill sites in India at present. However. (The Dr. biomass cogeneration and hydropower). India signed and ratified the Protocol in August. Present Status In India. India’s Potential India has 474 projects registered with the United Nations. The Indian government has approved more than 1. energy efficiency measures in several sectors (such as cement. 48 48 . Currently it is valued at around $155. has generated around 30 million carbon credits.for GHG emissions. on its part. carbon Credit in India India comes under the third category of signatories to UNFCCC. India is the largest beneficiary country for claiming about 31 % of the total world carbon trade through CDM.000 crore in export earnings. 2002 and has emerged as a world leader in reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs) in the past few years. Gasification) l Among the above options/technologies following are considered as favourable to implement in India. The developed countries purchase CERs rather than finding new ways of reducing emissions by technological development l Production of organic manure using controlled aerobic composting. At present. Aerobic Composting b.75%. India’s share is just 11. annual CER revenues to the country could range from US$ 10 million to 300 and kavingoms@ gmail. It is expected to rake in at least Rs 22.000-30. l l Pelletisation. petrochemicals and power generation) as well as the reduction of industrial gases that contribute to climate change.If India can capture a 10% share of the global CDM market. in terms of CERs. Pelletisation) Biochemical Thermal (a. The urban population in larger towns and cities in India is increasing at a decadal growth rate of above 40%. and wind power with a potential of 225 million CERs have been registered. and approximately 140 million are in pipeline.56 million (Rs. Anaerobic digestion using bio-methanation technology for production of power. India has the second largest portfolio with a market share of 12%.455 CDM projects which can potentially make Rs 28. which has a whopping market share of 61%. cities are facing problems of MSW (Municipal Solid Waste) disposal.