3/5/2017 AgricultureSectorinIndia

OmanIndiaJointInvestmentFund(OIJIF),ajointventure(JV)betweentheStateBankofIndia(SBI)andState
GeneralReserveFund(SGRF),investedRs95crore(US$13.94million)inGSPCropScience,aGujaratbased
agrochemicalscompany.
GovernmentInitiatives

Giventheimportanceoftheagriculturesector,theGovernmentofIndia,initsBudget201718,plannedseveralstepsfor
thesustainabledevelopmentofagriculture

Totalallocationforrural,agriculturalandalliedsectorsforFY201718hasbeenincreasedby24percentyearonyear
toRs1,87,223crore(US$28.1billion).AdedicatedmicroirrigationfundwillbecreatedwithacorpusofRs5000crore
(US$750million).ThegovernmentplanstosetupadairyprocessingfundofRs8,000crore(US$1.2billion)over
threeyearswithinitialcorpusofRs2,000crore(US$300million).
AdedicatedmicroirrigationfundwillbesetupbyNationalBankforAgricultureandRuralDevelopment(NABARD)for
farmerstoachievethegoalofPerDropMoreCrop.InitialcorpuswillbeRs5000crore(US$750million)inthis
regard.
TheparticipationofwomeninMahatmaGandhiNationalRuralEmploymentGuranteeAct(MGNREGA)hasincreased
to55percentandallocationtotheschemehasbeenincreasedtoarecordRs48,000crore(US$7.2billion)for
FY201718.
ShorttermcroploansuptoRs300,000(US$4,500)atsubsidisedinterestrateof7percentperannumwouldbe
providedtothefarmers.Anadditionalincentiveof3percentisprovidedtofarmersforpromptrepaymentofloans
withinduedate,makinganeffectiveinterestrateforthemat4percent.
Someoftherecentmajorgovernmentinitiativesinthesectorareasfollows:

TheNITIAayoghasproposedvariousreformsinIndia'sagriculturesector,includingliberalcontractfarming,direct
purchasefromfarmersbyprivateplayers,directsalebyfarmerstoconsumers,andsingletraderlicense,amongother
measures,inordertodoubleruralincomeinthenextfiveyears.
(http://dashboardcommerce.gov.in/)
TheMaharashtraStateAgricultureMarketingBoard(MSAMB)hasoperationalised31farmertoconsumermarketsin
thestate,andplanstoopen100moresuchmarketsinthefuture,whichwouldfacilitatebetterfinancialremunerations
forthefarmersbyallowingthemtodirectlyselltheirproduceinopenmarkets.
TheMinistryofLabourandEmploymentplanstoamendtheMinimumWageActtoraisethedailyminimumwageof
unskilledagriculturallabourinCclasstownstoRs350(US$5.2)inthecentralsphere,fromthecurrentwageofRs
160(US$2.4)perday.
TheCentralGovernmentplanstoopenatleastoneKrishiVigyanKendrainalldistrictsofthecountry,whichwill
provideadvancedagriculturetechnicalassistancetothefarmersneartheirfarmsitself.
TheGovernmentofKarnatakaplanstoinvestaroundRs1trillion(US$15.1billion)fordevelopingirrigationprojects
acrossthestatetomitigatetheimpactofdeficientrainfallandresultingdroughtonagricultureinrecentyears.
TheIndianSpaceResearchOrganisation(ISRO)hassuccessfullyplacedremotesensingsatelliteResourcesat2Ain
orbit,toprovidecontinuitytoISRO'sthreetierimagingdata,whichwillbeextremelyusefulforagriculturalapplications
likecropareaandcropproductionestimation,droughtmonitoring,soilmapping,croppingsystemanalysisandfarm
advisoriesgeneration.
TheUnionCabinethasapprovedamemorandumofunderstanding(MoU)betweenIndiaandPortugalforcooperationin
thefieldofagricultureandalliedsectors,tofacilitateexchangeofscientificandtechnicalinformation,tradeinplants
andplantproducts,exchangeofinformationinphytosanitaryissues,trainingprogrammes,seminarsandvisitsof
expertsandconsultants.
TheGovernmentofIndiaandtheGovernmentofIsraelhaveexpressedtheircommitmenttofurtherstrengthenbilateral
relationsinthefieldofagricultureandalliedsectors,aswellasenhancecooperationatthegovernmenttogovernment
andbusinesstobusinesslevelsbetweenthetwocountries,inabidtofurtherenhancetherelationship.
AccordingtotheAgricultureMinistry,50,000hectaresofareaisavailableforcoconutcultivationinBihar,theCoconut
DevelopmentBoardplanstoequipthefarmersthusmakingIndiatheworldleaderinproduction,productivity,
processingforvalueadditionandexportofcoconut.
Thegovernmenthasdrawnupafiveyearroadmaptoincreasepulseproductionfromnearly17.06MTin201516to24
MTin202021throughadedicatedactionplan.
TheCabinetCommitteeonEconomicAffairs(CCEA)hasapprovedBlueRevolution,anumbrellaschemefor
integrateddevelopmentandmanagementoffisheriesbyGovernmentofIndia,withtotalfinancialoutlayofRs3,000
crore(US$440.15million)foraperiodoffiveyears.
TheMinistryofPower,Coal,NewandRenewableEnergyhasannouncedthatgovernmentsplanstoinvestRs75,000
crore(US$11.08billion)inanenergyefficientirrigationschemeoverthenextthreetofouryears.
RoadAhead

http://www.ibef.org/industry/agricultureindia.aspx 4/6
3/5/2017 AgricultureSectorinIndia

TheagriculturesectorinIndiaisexpectedtogeneratebettermomentuminthenextfewyearsduetoincreased
investmentsinagriculturalinfrastructuresuchasirrigationfacilities,warehousingandcoldstorage.Factorssuchas
reducedtransactioncostsandtime,improvedportgatemanagementandbetterfiscalincentiveswouldcontributetothe
sectorsgrowth.Furthermore,thegrowinguseofgeneticallymodifiedcropswilllikelyimprovetheyieldforIndianfarmers.
The12thFiveYearPlanestimatesthefoodgrainsstoragecapacitytoexpandto35MT.

Exchangerateused:INR1=US$0.015asofFebruary8,2017

References:TheEconomicSurvey201617,AgriculturalandProcessedFoodProductsExportDevelopmentAuthority
(APEDA),DepartmentofCommerceandIndustry,UnionBudget201718,PressInformationBureau,MinistryofStatistics
andProgrammeImplementation,PressReleases,MediaReports

Note:*asperareportjointlypresentedbyTataStrategicManagementGroup(TSMG)andFICCI,

Disclaimer:ThisinformationhasbeencollectedthroughsecondaryresearchandIBEFisnotresponsibleforanyerrorsinthesame.

AGRICULTURE INDIA

AGRICULTURECLUSTERS INDUSTRYCONTACTS

DepartmentofAgricultureandCooperation
(http://agricoop.nic.in/)

NationalDairyDevelopmentBoard(NDDB)
(http://www.nddb.org/English/Pages/default.aspx)

NationalHorticultureBoard(NHB)(http://nhb.gov.in/)
(http://dashboardcommerce.gov.in/)
NationalOilseedsandVegetableOilsDevelopmentBoard
(NOVOD)(http://www.novodboard.com/)

IndianCouncilofAgriculturalResearch(ICAR)
(http://www.icar.org.in/)

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