Dissertation Project

On

“A Review Of Government Schemes For

Agricultural And Rural Development”

Submitted in the partial fulfillment of the requirement

for two year (F/T)
MASTER OF BUSINESS ADMINISTRATION (MBA)
Programme (2018-20) of Gopal Narayan Singh University

Under the Guidance of submitted by

Mr. Rajeev Ranjan Aakash Kumar
Chourasiya
Assistant Professor Roll No-18MBA037

FACULTY OF MANAGEMENT STUDIES

NARAYAN ACADEMY OF MANAGERIAL EXCELLENCE,
GOPAL NARAYAN SINGH UNIVERSITY,
ROHTAS
JULY 2020
 DECLARATION

I hereby declare that this MBA thesis entitled “A Review Of

Government Schemes For Agricultural And Rural Development” was
carried out by me for the degree of MASTER OF BUSINESS
ADMINISTRATION (AGRIBUSINESS) under the guidance and
supervision of Mr. Rajeev Ranjan (Asst. Professor), FACULTY OF
MANAGEMENT STUDIES, GNSU, JAMUHAR (SASARAM).

The interpretations put forth are based on my reading and

understanding of the original texts and they are not published anywhere in
the form of books, monographs or articles. The other books, articles and
websites, which I have made use of are acknowledged at the respective place
in the text.

For the present thesis, which I am submitting to the University,

no degree or diploma or distinction has been conferred on me before, either
in this or in any other University.

Place: Jamuhar AAKASH KUMAR CHOURASIYA

Date: March 2020 ROLL NO-18MBA037
 ACKNOWLEDMENTS

I wish to sincerely thank all those who have contributed in one way
or another to this study. Words can only inadequately express my deep
gratitude to my guide, Mr. Rajeev Ranjan (Asst. Professor), for his
meticulous care, kindness and generosity. His fruitful comments and
insightful suggestions have been a crucial formative influence on the
present study. He has supported me in every possible way since the
beginning of my research. His critical and careful reading of my writing has
saved me from a lot of errors. Without his guidance and encouragement, my
research would have never come out in the present form. I have seen in his
an unpretentious and devoted scholar. Furthermore, it has been a
memorable and enjoyable experience for me to work with him..
I wish to express my sincere gratitude to Dr. Alok Kumar, the Dean
of the college, for his incessant inspiration, expert guidance, invaluable
suggestions, and, above all, his moral support.
Finally, I sincerely acknowledge the courtesy of the authorities
of libraries: GNS University’s for their cooperation needed by permitting me
access data and relevant materials while carrying out the present research

Aakash  Kumar
Chourasiya
Contents

Executive Summary........................................................................................................................1
Introduction.....................................................................................................................................4
Concept of Rural Development :.......................................................................................................7
Rural Development in India pre-independence :............................................................................12
Post Independence :.......................................................................................................................16
Review of Literature.....................................................................................................................35
scope and Objectives.....................................................................................................................40
Research Methodology.................................................................................................................41
Data Interpretation........................................................................................................................42
Review of Agricultural development schemes................................................................................42
Soil Health card Scheme (SHc)....................................................................................................42
Pradhan mantri krishi Sinchayee Yojana (PmkSY)....................................................................43
kisan credit card.........................................................................................................................45
national Food Security mission (NFSM)......................................................................................46
mission for integrated development of Horticulture (MIDH)......................................................48
national agriculture market (e-nam)........................................................................................49
Schemes of Small Farmers agribusiness consortium (SFAC)........................................................50
agri-Business development (aBd) through venture capital Scheme (VCA)...............................50
equity grant Scheme (egS) For Farmer Producer companies (FPCS)...........................................51
credit guarantee Fund Scheme (CGFS) about scheme:...............................................................52
Farmer Producer organizations (FPOS) about scheme................................................................52
Scheme for Farmer Producer companies....................................................................................53
Price Support and Procurement.................................................................................................54
Minimum Support Price (MSP)-...................................................................................................54
Procurement of Foodgrains (department of Food & Public distribution)........................56
Price Support Scheme (PSS)........................................................................................................56
ministry of Food Processing industries (MOFPI).........................................................................56
Pradhan mantri kisan SamPada Yojana.......................................................................................56
national cooperative development corporation (NCDC).............................................................57
Pradhan mantri Fasal Bima Yojna (PMFBY).................................................................................58
risk management & insurance in animal Husbandry and dairying..............................................60
 Support to State extension Programmes for extension reforms Scheme (atma Scheme)..............60
establishment of the agri-clinics and agri-Business centres (ACABC).........................................61
\ kisan call centers (kcc)............................................................................................................62
Farmers’ portal (www.farmer.gov.in).........................................................................................62
development of mobile apps......................................................................................................63
cce agri – mobile app..................................................................................................................65
crop insurance Portal..................................................................................................................65
rashriya krishi vikas Yojana (rkvy).............................................................................................65
National Programme for dairy development (NPDD)..................................................................66
dairy entrepreneurship development Scheme..............................................................................67
Pandit deen dayal upadhyay unnat krishi Shiksha Yojna.............................................................67
Mahatma Gandhi national rural employment guarantee Scheme (MGNREGS)..........................68
deen dayal upadhyaya grameen kaushalya Yojana (DDU-GKY)...................................................68
deendayal antyodaya Yojana-national rural livelihoods mission (DAY-NRLM)............................69
mahila kisan Sashaktikaran Pariyojana (MKSP)...........................................................................70
roshni..........................................................................................................................................70
Himayat for Youths in j&k..........................................................................................................70
Skill development in agriculture..................................................................................................70
Finding.........................................................................................................................................72
Conclusion...................................................................................................................................74
References.....................................................................................................................................77
 EXECUTIVE SUMMARY
Agriculture plays a vital role in India’s economy. 54.6% of the population is
engaged in agriculture and allied activities (census 2011) and it contributes
17.4% to the country’s Gross Value Added for the year 2016-17 (at current
prices). Given the importance of agriculture sector, Government of India
took several steps for its sustainable development. Steps have been taken to
improve soil fertility on a sustainable basis through the soil health card
scheme, to provide improved access to irrigation and enhanced water
efficiency through Pradhan Mantri Krishi Sinchai Yojana (PMKSY), to
support organic farming through Paramparagat Krishi Vikas Yojana
(PKVY) and to support for creation of a unified national agriculture market
to boost the income of farmers. Further, to mitigate risk in agriculture sector
a new scheme “Pradhan Mantri Fasal Bima Yojana (PMFBY) has been
launched for implementation from Kharif 2016. As per the land use statistics
2014-15, total geographical area of the country is 328.7 million hectares, of
which reported net sown area is 140.1 million hectares and the gross
cropped area is 198.4 million hectares with a cropping intensity of 142
percent. The net area sown works out to be 43 percent of the total
geographical area. The net irrigated area is 68.4 million hectares.

As per the Provisional Estimates released by Central Statistics Office

(CSO), Ministry of Statistics & Programme Implementation on 31.05.2017,
agriculture and allied sectors contributed approximately 17.4 percent of
India’s GVA at current prices during 2016-17. GVA of agriculture and allied
sectors and its share in total GVA of the country at current prices series
during the last 4 years is as follows:

1
 Sector Ye
ar
2013-14 2014-15 2015-16 2016-17
GVA of Agriculture and Allied 1926372 2068958 2175547 2372085
Sectors
Percent to total GVA 18.6 18.0 17.5 17.4

Source: Central Statistics Office, Ministry of Statistics and Programme

Implementation, Govt. of India. There has been a continuous decline in the
share of agriculture and allied Sectors in the GVA from 18.6 percent in
2013-14 to 17.4 percent in 2016-17. Falling share of agriculture and allied
sectors in GVA is an expected outcome in a fast growing and structurally
changing economy. Growth (over the previous year) in the total GVA of the
economy and that in the GVA of agriculture and allied sectors at 2011-12
basic prices is given below:

Year Total Agriculture &

GVA Allied Sector
GVA
2013-14 6.1 5.6
2014-15 7.2 -
0.2
2015-16 7.9 0.7
2016-17 6.6 4.9

This article evaluates rural infrastructure facilities inmajor states of India.

Despite several public initiatives for infrastructure development in rural
India, facilities continue to be poor and progress has been mostly
unsatisfactory with differential performance across states.

 rural infrastructure reveal that improved physical and social infrastructure

and livelihood opportunities enhance agricultural productivity and output,
improve literacy and life expectancy, and reduce poverty and infant
mortality. The results, showing the relative importance of various

2
infrastructures, suggest that the government should prioritise additional
investments in electricity, roads, irrigation, housing and
telecommunications to enhance overall well-being.

3
 INTRODUCTION

India is a country of villages and its development is synonymous with the

development of the people living in rural areas. India is a vast and second
most populous country of the world. (According to the 1991 census, 74.28
per cent population of our country reside in the countryside). But a big part
of this population has been leading an uncertain economic life due to non-
synchronization of employment opportunities in agriculture sector because
of the fast growing population.

Rural development has been receiving increasing attention of the

governments across the world. In the Indian context rural development
assumes special significance for two important reasons. First about two
thirds of the population still lives in villages and there can not be any
progress so long as rural areas remain backward. Second, the backwardness
of the rural sector would be a major impediment to the overall progress of
the economy.

India is predominately an agricultural country and farming is their main

occupation. In terms of methods of production, social orgnaisation and
political mobilization, rural sector is extremely backward and weak.
Moreover, technical developments in field of agriculture have increased the
gap between the rich and poor, as the better off farmers adopted modern
farm technology to a greater extent than the smaller one’s. The all India
Rural Credit Review Committee in its report warned “If the fruits of
development continue to be denied to the large sections of rural community,
while prosperity accrues to some, the tensions social and economic may not
only upset the process of orderly and peaceful change in the rural economy
but even frustrate the national affords to set up agricultural production.’’

4
It was therefore felt necessary to make arrangements for the distribution of
fruits of development to the rural weak and backward section of society.

It is rightly pointed out that a purely agricultural country remains backward

even in respect of agriculture. Most of the labour force in India depends on
agriculture, not because it is remunerative but because there are no
alternative employment opportunities. This is a major cause for the
backwardness of Indian agriculture. A part of the labour force now engaged
in agriculture needs to be shifted to non-agricultural occupations.

Literacy, another growth indicator, is more acute in rural than in the urban
areas. It is 44 per cent in villages and 73 per cent in cities. Again, more
poor people live in the rural than the urban areas. Out of the estimated 210
million poor persons in the country, 168 million are located in villages and
42 million in urban areas. Out of 108 million rural household, 30 per cent
are agricultural labour households. Fifty eight per cent of households in the
villages are marginal farmers, having less than I hectare of land and 18 per
cent having less than 2 hectares.

These figures show that there is wide degree of diversity in some of the
basic socio indicators of development between the rural and urban areas and
call for concerted action to alleviate this disparity.

The stress on rural development is also due to many constraints facing the
rural areas, which generally suffer from inadequate infrastructure facilities
and technological advancements. The rural areas are not well placed in terms
of even minimum needs like safe drinking water, primary health and road
transport. This apart, the rural population suffers from indigence, ignorance
and illiteracy. Their traditional outlook towards development has been

5
preventing them from taking full advantage of the incentives offered by the
Government. Also, the ownership of land and other assets has been heavily
concentrated in hands of a few. It is precisely for this reason that the benefits
of rural development programmes failed to reach the rural population
targeted for these benefits to the extent expected.

Rural development requires a vast infrastructure. Provision of this is no easy

task, because it has to be undertaken by the Government. Private investment
in this area has been meager and continues to be so. But the trend of mearge
investment in the rural sector is gradually changing in terms of economic
sustenance. However, evolving an appropriate technology for rural
development is not an easy task. Such a technology has to simultaneously
achieve the thin objectives of raising growth rates and stepping up
opportunities of employment. The setting up of appropriate institutions and
co-ordinating their activities are crucial to any rural development strategy
The potential of self reliance in rural areas needs to be exploited in a planned
manner. A single approach to rural development would not be effective. In
fact, rural development is the product of interaction between various
physical, technological, economic, socio-cultural, institutional and
environmental factors. Indeed, the rural sector should experience the
required changes so that it can join the mainstream of national development
and contribute its share for economic development. It has been rightly said,
“In the end, however, rural development should not be seen as a package of
specific needs but as a transformation of rural like and conditions.’’

6
Concept of Rural Development :

The term is used to mean ‘organizing things’ so as to change existing

conditions in favour of a better state. There may be many variants of
development drawing their nomenclature from the sphere of activity where
the change is managed or the type of change or the ‘method’ how the
desired change is attained. For several decades the term was used, solely,
for economic change, inclusive of the conditions which affect betterment.
The concept was later extended to its wider meaning to embrace ‘changes’
of political, social, cultural, technological, economic and also the
psychological frame of society. In its current meaning ‘development’ is
used to express animated change for reaping utmost human potential.
Technically, development is the name of a ‘Policy’ and its ‘Consequent
programmes’, designed to bring about a desired change’ in social,
economic, political, or technological spheres of life. It is concerned with the
promotion of human capacities : Physical or mental, to attain the cherished
social goals. Development is potential-related, and it can be attained to the
extent of the existing development potential, which is measured by the

un-exploited resources, talents, margin of sophistication and the ‘will

power’ which implements development policy. Development is the
conditioning of progress, and when efforts are laid towards the use of
Growth potentials in rural economy and Society, it is rural development.

Rural development is not a charity programme and its objective is to raise

the capacity of producing more crops, better crops, variety crops, greater
output per unit of input and higher quality of output. It is concerned with
creation of increased incentives for putting more efforts and investments for
raising efficiency per worker. Therefore education, information, training,

7
research, and application of research is within the range of rural
development.

The term ‘rural development’ is of focal interest and is widely acclaimed in

both the developed and the developing countries of the world. There is
however no universally acceptable definition of rural development, and the
term is used in different ways and in vastly divergent context. As a concept,
it can notes overall development of rural areas with a view to improve the
quality of life of rural people. In this sense it is a comprehensive and
multidimensional concept and encompasses the development of agriculture
and allied activities-village and cottage industries and crafts, socio-
economic infrastructure, community services and facilities, and above all,
the human resources in rural areas. As a phenomenon, it is the result of
interactions between various physical, technological, economic, socio-
cultural, and institutional factors. As a strategy, it is designed to improve the
economic and social well-being of a specific group of people the rural poor.
As a discipline, it is multidisciplinary in nature representing an intersection
of agriculture social behavioural, engineering and management sciences. In
the words of Robert Chambers, “Rural Development is a strategy to enable a
specific group of people poor rural women and men, to gain for themselves
and their children more of what they want and need. It involves helping the
poorest among these who seek a livelihood in the rural areas to demand and
control more of the benefits of rural development. The group includes small
scale farmers, tenants and the landless.*

Thus, rural development may mean any one of these, depending upon our
focus. To avoid ineffective floundering among the myriad definitions, we
shall define rural development as a process of developing and utilizing
natural and human resources, technologies, infrastructure facilities,

8
institutions and organisations, and government policies and programmes to
encourage and speed up economic growth in rural areas, to provide jobs,
and to improve the quality of rural life towards self sustenance. In addition
to economic growth, this process typically involves changes in popular
attitudes, and in many cases even in customs and beliefs. In a nutshell, the
process of rural development must represent the entire gamut of change by
which a social system moves away from a state of life perceived as
‘unsatisfactory’ towards a materially and spiritually better condition of life.
The process of rural development may be compared with a train in which
each coach pushes the one ahead of it and is in turn pushed by the one
behind, but it takes a powerful engine to make the whole train more. The
secret of success in development lies in identifying and if needed
developing a suitable engine to attach to the train. There are no universally
valid guidelines to identify appropriate engines of growth, if at all they
exist. It is a choice which is influenced by time, space, and culture.

Rural development has attracted the attention of the economists right from
the Mercantilist era and Adam Smith down to Marse and Keynes, yet they
were mainly interested in the problems which were essentially static in
nature and largely related to a western European framework of social and
cultural institutions. Their interest in the economics of development has
been stimulated by the wave of political resurgence that swept the Asian and
African nations after Second World War and thought to promote rapid
economic development coupled with the realization on the part of the
developed nations that ‘poverty anywhere is a treat to prosperity
everywhere’. As Meier and Baldwin have remarked : “A study of the
poverty of nations has even more urgency than a study of the wealth of
Nations.’’ The Economists differ on its definition as some one says increase

9
in the economy’s real national income over a long period and some says
about the increase in the per capita real income of the economy which are
not convincing as it lacks of human welfare.

As the Economists have different views on the concept of economic

development and so, it is very difficult to define what rural development
actually means. It is rather complex and multidimensional duplication
which could not be conclusive. Generally, it is said that rural development
means the development of rural areas through extension of irrigation
facilities, expansion of electricity, improvements in the techniques of
cultivation, educational and health facilities etc. But it seems a narrowness
of the aims. Agriculture may be the part of the rural development but it
cannot be the whole of rural development. Professor V.K.R.V. Rao looked
upon the process of economic development essentially as a means to the
development of human beings enabling them to realise their full potential.
He was actually concerned about the nurturing of human values and
attainment of human dignity by all. No wonder, his thinking on rural
development was influenced by his larger human perspective. He further
visualised that agricultural development by itself had serious constraints in
alleviating poverty there and emphasized that non-agricultural development
and growth of social and cultural services are as important as agricultural
development for solving the complex problem of rural poverty and
unemployment. There are different views on the concept of rural
development but, rural development continue first to the basic needs of the
rural population coupled with psychological and cultural needs to make
them productive and enlightened so that they should create assets not to eat
assets.

10
Since rural development intends to reduce poverty, it must clearly be
designed to increase production and raise productivity. It is believed that
improved food supplies and nutrition, together with basic services such as
health, education and cultural activities would directly improve the physical
wellbeing and quality of life of the rural poor, but also indirectly enhance
their productivity and their ability to contribute to the national economy.

11
Rural Development in India pre-independence :

Rural development traces back its history to the Seventeenth Century when
voluntary efforts to serve the mankind were initiated. A religious society of
people known as ‘Friends’ or ‘Quakers’ had emerged as a movement in this
direction for the first time

in England and then in other parts of the world in rapid strides. It aimed at
providing service to mankind transcending bonds of religion, territory and
culture. The Quaker was a kind of rebel. In the mid of the seventeenth
century, the main plank of the Quaker movement was that every human
being has infinite dignity, that he is worthy of reverence simply because he
is a human being and therefore, a temple of God. The main spirit behind
this movement has been one of the selfless service and sacrifice and it runs
like a wire, as it were among the exponents of the Quaker faith.

The Quakers constituted the international group, functioning on a global

level. Since the very inception of their movement, the Quakers devoted
themselves to the alleviation of human miseries, resulting from wars and
natural calamities like famines, earthquakes, etc. The Quaker service to
India was brought by Rachel Metcalfe. She left England in the year 1866
and came to India with meagre resources and with no previous arrangements
for launching a project of social reconstruction. In last quarter of the
nineteenth Century, a few more quakers arrived in India to actively
participate in reconstruction of the society. But the unfortunate part was that
the famines of 1895-96 and 1899-1900 converted these Quakers into simple
relief workers.

12
It was at the beginning of the twentieth century that a training point was
recorded in the history of rural reconstruction work when the Rasulia
compound at the outskirts of Hoshangabad was acquired and the Rasulia
workshop for learning was established. It was in this compound that a
popular Hoshangabad was later developed. The trainees of the workshop
manufactured furniture and supplied the same to the local market. Even
today some of the furniture available in the Collectorate office and on the
Hoshangabad railway station was manufactured in that workshop in those
early days. A stage then arrived in 1920 when the Rasulia workshop had to
be closed down mainly on account of an exit of the then grown up children
from it. Beside, the Quakers had also carved out the two villages of Laki
and Makoria from jungle in nearby areas of Hoshangabad and were pre-
occupied with problems of inhabitants of these settlements.

A new phase started in the year 1932 when Hilda Cushmore visited India
and opened a new chapter in the history of Rural development. Using his
profound knowledge of working as a Warden of a university ‘settlement’ in
Bristor and Manchester and as a quaker relief worker in France and Poland
she conceived of the idea of an Indian rural settlement which could be
named as Quaker Ashram. She established the Ashram with an intention
that it should serve as a forum for exchange of ideas for the Indians and the
English and for all other drawn from different parts of the world. Besides
extending a variety of services to the villages through trained workers,
young and old, fully equipped for both mental and manual work, it was
deemed that the Ashram would grow into a living witness to the possibility
of International co-operation and Goodwill.

13
The first attempt for rural development in India was made in 1885 with an
ultimate objective of bringing immediate relief and development of rural
areas in Baroda. In 1922, the Swaraj Ashram was established at Baroda by
Maganlal Gandhi. The Ashram aimed at preparing for non-cooperation, and
the civil disobedience movement launched by the Indian National Congress
under the leadership of Gandhi. The resolution for non-cooperation was
passed earlier in September 1920 at the Calcutta Congress under the
President ship of Lala Lajpat Rai. This resolution included mainly two
things : boycott of foreign goods and mass publicity for use of home-made
Khadi clothes. It was thought that boycott of goods in particular might not
affect adversely the British trade. But spinning and weaving as an
instrument for training in the qualities of self-reliance and self-confidence
would definitely bring about a favourable impact on rural development.
Moreover, with the start of the Reform movement by Adivasis during the
period 1915-20, the Government suffered heavy losses in revenue, sales of
liquor by contractors reduced, drastically and the Adivasis also refused to
do the agricultural work on low wages. In 1935, reconstruction centers were
organised at several places, but start of the Second World War in September
1939 thwarted the progress of achievement of these centre. ‘Grow More
Food’ campaign was started in 1939 with a view to augmenting the level of
food production through planning and implementation of short term and
long term improvement programmes in agriculture. Besides, a good number
of projects aiming at community development were introduced in different
parts of the country by the Governments of states/union territories.

The next important step was taken by the Kisan Sabha under the leadership
of the Communist party worker Mrs. Godavari Parulekar in 1945. For the
first time, Adivasis made slogans against exploitation by landlord, money

14
landers, and contractors. As a result, the Minimum Wages Act was brought
under enforcement in Forties to safeguard the interest of Advasis working
for forest contractors and plantation owners. And since 1947, the
Government started to encourage formation of cooperative labour contract
societies for forest workers.

While summing up, we notice that since start of the last decade of the
nineteenth century, quite a few centres parts of the country. These centres
made systematic efforts for development of life and society of specific rural
Communities and tried to make full use of technological knowledge. And
by the end of the Forties of twentieth century a number of such centres
based on well defined principles and approaches of community
development were going on in various parts of the country.

15
Post Independence :

After independence, in September 1948 the first and the for most ‘Pilot
Project’ was started in an area of 64 villages scattered in the vicinity of
Mahewa located at a distance of about 8 miles from the Headquarters of
Etawah district. Subsequently, in the year 1949, there was again a move for
‘Grow More Food’ campaign with a view to attaining self-sufficiency in
food grains by 1952. In the same year, on 18 th April, the Bhoodan
Movement was started under the leadership of Vinoba Bhave. The aim of
the movement was to acquire land through donation from individual
landowners

in England and then in other parts of the world in rapid strides. It aimed at
providing service to mankind transcending bonds of religion, territory and
culture. The Quaker was a kind of rebel. In the mid of the seventeenth
century, the main plank of the Quaker movement was that every human
being has infinite dignity, that he is worthy of reverence simply because he
is a human being and therefore, a temple of God. The main spirit behind
this movement has been one of the selfless service and sacrifice and it runs
like a wire, as it were among the exponents of the Quaker faith.

The Quakers constituted the international group, functioning on a global

level. Since the very inception of their movement, the Quakers devoted
themselves to the alleviation of human miseries, resulting from wars and
natural calamities like famines, earthquakes, etc. The Quaker service to
India was brought by Rachel Metcalfe. She left England in the year 1866
16
and came to India with meagre resources and with no previous arrangements
for launching a project of social reconstruction. In last quarter of the
nineteenth Century, a few more quakers arrived in India to actively
participate in reconstruction of

the society. But the unfortunate part was that the famines of 1895-96 and
1899-1900 converted these Quakers into simple relief workers.

It was at the beginning of the twentieth century that a training point was
recorded in the history of rural reconstruction work when the Rasulia
compound at the outskirts of Hoshangabad was acquired and the Rasulia
workshop for learning was established. It was in this compound that a
popular Hoshangabad was later developed. The trainees of the workshop
manufactured furniture and supplied the same to the local market. Even
today some of the furniture available in the Collectorate office and on the
Hoshangabad railway station was manufactured in that workshop in those
early days. A stage then arrived in 1920 when the Rasulia workshop had to
be closed down mainly on account of an exit of the then grown up children
from it. Beside, the Quakers had also carved out the two villages of Laki and
Makoria from jungle in nearby areas of Hoshangabad and were pre-occupied
with problems of inhabitants of these settlements.

A new phase started in the year 1932 when Hilda Cushmore visited India
and opened a new chapter in the history of Rural development. Using his
profound knowledge of working as a Warden of a university ‘settlement’ in
Bristor and Manchester and as a quaker relief worker in France and Poland
she conceived of the idea of an Indian rural settlement which could be

17
named as Quaker Ashram. She established the Ashram with an intention that
it should serve as a forum for exchange of ideas for the Indians and the
English and for all other drawn from different parts of the world. Besides
extending a variety of services to the villages through trained workers,
young and old, fully equipped for both mental and manual work, it was
deemed that the Ashram would grow into a living witness to the possibility
of International co-operation and Goodwill.

The first attempt for rural development in India was made in 1885 with an
ultimate objective of bringing immediate relief and development of rural
areas in Baroda. In 1922, the Swaraj Ashram was established at Baroda by
Maganlal Gandhi. The Ashram aimed at preparing for non-cooperation, and
the civil disobedience movement launched by the Indian National Congress
under the leadership of Gandhi. The resolution for non-cooperation was
passed earlier in September 1920 at the Calcutta Congress under the
President ship of Lala Lajpat Rai. This resolution included mainly two
things : boycott of foreign goods and mass publicity for use of home-made
Khadi clothes. It was thought that boycott of goods in particular might not
affect adversely the British trade. But spinning and weaving as an
instrument for training in the qualities of self-reliance and self-confidence
would definitely bring about a favourable impact on rural development.

Moreover, with the start of the Reform movement by Adivasis during the
period 1915-20, the Government suffered heavy losses in revenue, sales of
liquor by contractors reduced, drastically and the Adivasis also refused to do
the agricultural work on low wages. In 1935, reconstruction centers were
organised at several places, but start of the Second World War in September
1939 thwarted the progress of achievement of these centre. ‘Grow More

18
Food’ campaign was started in 1939 with a view to augmenting the level of
food production through planning and implementation of short term and
long term improvement programmes in agriculture. Besides, a good number
of projects aiming at community development were introduced in different
parts of the country by the Governments of states/union territories.

19
The next important step was taken by the Kisan Sabha under the leadership
of the Communist party worker Mrs. Godavari Parulekar in 1945. For the
first time, Adivasis made slogans against exploitation by landlord, money
landers, and contractors. As a result, the Minimum Wages Act was brought
under enforcement in Forties to safeguard the interest of Advasis working
for forest contractors and plantation owners. And since 1947, the
Government started to encourage formation of cooperative labour contract
societies for forest workers.

While summing up, we notice that since start of the last decade of the
nineteenth century, quite a few centres parts of the country. These centres
made systematic efforts for development of life and society of specific rural
Communities and tried to make full use of technological knowledge. And by
the end of the Forties of twentieth century a number of such centres based on
well defined principles and approaches of community development were
going on in various parts of the country. Some of these centres were started
by the Government of sub-national level and some others were initiated by
the great individuals and private organisations including Christian
missionaries, Gandhian Constructive workers and independent voluntary
associations.

and distribute it fairly among the landless families. A similar kinds of

movements like ‘Gramdan’ were also started in the direction of rural
development during this period. But one of the major shortcoming of these
efforts was that they were more or less ‘ad hoc’ and inco-ordinated in
nature without any conceptually broad-based strategy. Besides, these efforts
were also more in nature of trials rather than experiments with well defined
20
approaches and methods. Those of Governmental authorities to improve the
economic, social and cultural conditions of communities, to integrate these
into the life of the nation and to enable theme to contribute fully to national
progress

In India, objectives of the Community development add national extension

programme were to assist each village in planning and carrying out
integrated, multi- phased family and village plans directed towards
increasing agricultural production, improving existing village crafts and
industries and organizing new ones, providing re-creation facilities and
programmes, improving housing and family living conditions and providing
programmes for village women and youth. For the implementation of the
programme blocks were set up, each comprising about 70,000 people.
Community development programme acquired a momentum following the
introduction of Panchayati Raj institutions. This was done on the
recommendations of a study team for community projects and national
extension service appointed by the Planning Commission in 1957. The team
in its report, submitted at the and of December 1957, had tried to find out
what needs to be done to make the performance match with the promise.
The committee observed that so long as we do not discover or create a
representative and democratic institution which will supply the local
interest, supervision and needed to ensure that the expenditure of money
upon local objects conforms with the needs and wishes of the locality,
invest it with adequate power and assign to it appropriate finances, we shall
never be able to awake local interest and excite local initiative in the field
of development.

21
In the second plan a shift in emphasis was made with relatively larger share
of the plan outlay allotted to heavy industries in public sector. The plan
further added that rapid industrialization and diversification of the economy
was thus the core of development. It was also hypothesized by the planners
that the first task should be to make the cake larger and then one can think
of its distribution. This led to the conclusion that “seek yet growth and all
other thing will be added into it” But in the third plan it was stated that in
the scheme of development the first priority necessarily belong to
agriculture. Experience in the first two plans, and specially in the second,
has shown that the rate of growth in agricultural production is one of the
main limiting factor in the progress of the Indian economy. It was also
realised that development of agriculture, based on the utilisation of
manpower resources of the country side and the maximum use of local
resources holds a key to the rapid development of the country

In view of the production trends during the second plan, it had become clear
that importance of agriculture could not be undermined. The third plan
explicitly stated that “more than any other factor, the success of the Third
plan will turn on the fulfillment of its agricultural targets”. After the lapse
of some years, the government launched programmes oriented to
agriculture and allied services. The main reason for introducing the new
programmes was the heavy import of foodgrains between 1947-1960. The
first among these programmes was Intensive Agricultural District
Programme, an experiment in intensive agricultural development
introduced in 1960. This step was taken by the government on the
recommendation of the Agricultural production Team sponsored by the
Ford Foundation. The team suggested that those crops and areas in each
state having the highest potential for increasing production may be chosen.
22
The purpose was to achieve rapid and significant increase in the agricultural
production. Under the IADP, a package of improved practices were to be
applied. It was thought that through measures of concentration of resources
in such areas, a network of substantial production pockets could be built up
within a few years.

Both positive and negative results can be expected from such a pilot
programme. The basic idea of the programme was sound. It was also proved
that the small farmers can be no less progressive than the big farmers
provided the requisite pre-conditions for agricultural development are
created. The committee also described the programme as the “Path finder”
and “Pace setter” for the whole agricultural programme. The main criticism
level led against this programme was that the whole strategy was supply
based without taking into consideration the demand aspect of inputs.

The Intensive Agricultural Area Programme introduced in 1963, was a

diluted version of the IADP. The aim of the IAAP was also to bring about an
increase in the production of main crops in selected areas by an intensive
and coordinated use of various aid of production.

High-yielding varieties programme was introduced in 1965-66. The strategy

was expected to benefit the rural economy in two ways : (a) by quick
increase in the cereal output and (b) by raising the demand for agricultural
labourers.

Under this programme, arrangements were to be made for the selection of

areas in each state; working out a training programme at all levels and

23
arrangement of inputs like fertilizer, seeds, pesticide, plant protection
equipment and credit on the basis of proper need assessment.

Its chief marit was found in its immense potentialities to solve the food
problem of the country in the shortest time. Out of a total increase in food
grain production of 32 million tonnes envisaged in the Fourth Plan, nearly
21 million tonnes were estimated to be due to the successful adoption of
the HYVprogramme. This programme brought about a ‘Green Revolution’
in the country. Another important finding has been that the new strategy
has reduced unemployment among agricultural labourers in several states
though its impact on the wage level of agricultural labours is not very clear.
Inequality of income not only widened between the irrigated and run
irrigated areas of implementation of this programme but also within the
areas where this programme was introduced Adverse weather condition
prevailed for three years. The sharp set-up in defence outlay and
administrative rigidity contributed to the shortfalls in the Third Plan which
ultimately resulted in to plan holiday for subsequent three years.

The basic goal of Fourth Plan to achieve rapid increase in the standard of
living of the people through measures which also promote equality and
social justice. Emphasis was placed on the common man; the weaker
section and the less privileged. For this purpose, priority was given to
labour intensive programme through development of agriculture, rural
infrastructure including communication and transport links, rural
electrification, water management, rural industries decentralization and
dispersal of industrial investment and rural and urban housing.

24
Removal of poverty and attainment of self-reliance were two major
objectives that the country had set out to accomplish in the Fifth Plane.
The major thrust of policy was in terms of substantially widened
employment opportunities in the agricultural sector, specially for
agricultural laboures and small farmers. The National Programmes of
Minimum Needs as incorporated in the Fifth Plan, therefore, envisaged a
frontal attack on this problem. One of the major objectives was to
substantially raise the per capita monthly consumption of the lowest 30
per sent of the rural population. During these two plans, a number of
special rural development programmes were introduced such as Farmer
Training and Education Programme for commercial crop Oil Seeds
Development Programme and Dry Land Agricultural Development
Programme. The government was worried about frequent drought in some
parts of the country. The drought prone area represents nearly 19 per cent
of the total area and account for nearly 12 per cent of the population.
Apart from the outlay included in the Five Year Plans, the government used
to provide annually a considerable amount to famine affected areas. Hence,
Rural Workers Programme was initiated in 1970-71 with focus on execution
of rural works and employment generation. The programme was reoriented
on the basis of an area development approach and was redesigned as
Drought Prone Area Programme at the time of mid term appraisal of the
Fourth Plan. The basic objectives of the programme were (1) reducing the
severity of the impact of drought, (2) stabilizing the income of the people
particularly weaker sections of the society and (3) restoration of ecological

25
balance. Under the programme various schemes were to be undertaken
such as
medium and minor irrigation projects, soil conservation and a forestation
and construction of roads.
Though employment opportunities were rooted through this programme,
the other objectives were not achieved. Dr. Gadgil remarked : “The idea
that a rural works programme can easily meet this need is not well
founded. The experience of the Third Plan in relation to rural works
programme was that both from the point of view of utility as a
development programme and from the point of view of affording
additional employment suitable to the need of the local population, the
rural works approach left much to be desired.”1
One of the objectives of the Fourth Plan was to enable the small and
marginal farmers and agricultural labourers to participate in the process of
development and to share its benefit. In pursuance of this objective, the
plan provided two sets of projects, viz., the project for small but potentially
viable farmers and agricultural labourers.
The main functions of the Small Farmers Development Agency were : (1) to
identify eligible small farmers on the basis of potential viability and their
problems and formulate programmes for making them viable, (2) to
promote rural industries and set up an adequate institutional, financial and
administrative machinery, and (3) to promote, and strengthen common
facilities such as cooperative institutions marketing etc.
The programme of Marginal Farmers and Agricultural Labourers was
worked out in 1971-72. The projects under the MFAL programme were

26
designed to make in-depth study of the problems of marginal farmers and
agricultural labourers and to evolve suitable programmes and make
institutional, financial and administrative arrangements for their
implementation. irregularities were reported in the identification of target
groups. Very little attention was paid to identification of agricultural
labourers in several projects. The programme which was primarily
adderessed to help the weakest, tended to help the relatively better off
among the small and marginal farmers and agricultural labourers.

The Command Area Development Programme was conceived towards the

end of the Fourth Plan. The basic objective of this programme was to
organize the use of irrigation
systems by modernizing them and adjusting the cropping pattern to soil
and agro-climatic conditions of the command areas. Thirty seven command
area development authorities converging 47 irrigation projects had been
set up till March 1978.*

27
Realizing the fact that a large number of people had been neglected in
various development programmes, the government launched some
programmes having a wider coverage than that of earlier programme.

Under the Hill Area Development Project, Tribal Area Development

Programme and Integrated Trible Project efforts were made to provide
benefits to trible people. The main aim behind these programms was to
provide basic amenities and improve their living condition.
The Cresh Scheme for Rural Employment was conceived at a time when the
various development programmes like SFDA, MFAL, DAAP, etc. had not
spread out fully and a minimum measure of affort was considered necessary
to relieve the stress caused by unemployment and underemployment The
scheme was introduced in 1971. This scheme had two basic objectives, Viz.,
(1) direct generation of employment in the districts covered by applying
labour intensive techniques, and (2) the production of assets of durable
nature in consonance with local development plans.

Implementation of this scheme suffered from many difficulties. The

injunction that the scheme will provide employment only to those
household which had no adult earning member was found to be
impractible. Other drawback was the lack of follow up programmes. Proper
attention was also not given to create useful durable asset through this
programmes.

28
Based on the directive principles of the constitution social justice has been
a basic objective of development planing. However, the past experience
had revealed that the programme for the provision of social consumption
did not have the desired impact partly because the related programmes
had not been given high priority and partly because decisions regarding
individual sector were taken without any effort to bring about an
integration of the facilities provided.

Indian Rural Problems, Ashok Navrang Murarilal & Sons, New Delhi, 2006,
pp. 204-245.
The National Programme of Minimum Needs as incorporated in the Fifth
Plan, therefore, envisaged a frontal attack on this problem by attempting to
allocate adequate resources for social consumption for all areas. It aimed to
establish through out the country a network of certain essential services on
a coordinated and integrated basis, given certain predetermined criteria of
uniformity and equlity. Since the programme includes both sectors urban
and rural the government decided to give priority to the programmes in
rural areas. In the Sixth Plan, therefore, a Revised Minimum Needs
Programme was incorporated . The new strategy of Integrated Rural
Development (IRD) was announced in 1976. It was in outcome of prolonged
minimum needs programme Agriculture development means providing
assistance to the crop producers with the help of
various agricultural resources. Providing protection, assisting in the research
sphere, employing latest techniques, controlling pests and facilitating
diversity all fall within the purview of agriculture development.

29
Ways # 1. Transport Facilities:
To facilitate the farmers to produce new farm inputs and enable them to
sell their product in markets, villages should be linked with mandies.
It would help to raise their income which in turn stimulates the farmer’s
interest to adopt better farm technology with sufficient income.
Thus the cultivator can invest more for the improvement of land.

Ways  # 2. Irrigation Facilities:
Crop productivity depends not only on the quality of input but also on the
irrigation facilities. Therefore, canals, tube wells should be constructed to
provide better irrigation facilities for the security of crops. Extensive flood
control measures should be adopted to prevent the devastation caused by
floods.

Ways # 3. Institutional Credit:
To save the farmers from the clutches of moneylenders, adequate credit
facilities should be made available at reasonable cheap rates in rural areas.
The land mortgage banks and co-operative credit societies should be
strengthened to provide loans to the cultivators. Moreover, integrated
scheme of rural credit must be implemented.

Ways # 4. Proper Marketing Facilities:

Marketing infrastructure should be widened and strengthened to help the

farmers to sell their products at better prices. There should be proper
arrangements for unloading of the produce in the markets. Besides, price

30
support policy must be adopted and minimum prices should be guaranteed
to the peasants.

Ways # 5. Supply of Quality Inpu

The farmer in the country should be supplied with quality inputs at proper
times and at controlled prices. To protect the farmers exploitation, effective
steps are needed to be taken to check the sale of adulterated fertilizers.

Ways # 6. Consolidation of Holdings:

In various states consolidation of holdings is not satisfactory. Therefore,

efforts should be made towards completing the consolidation work in the
specific period of time. Big areas of land which are lying waste, can be
reclaimed and made fit for cultivation.

Ways  # 7. Agricultural Education:

In a bid to guide and advise the farmers regarding the adoption of new
technology arrangements should be made for agricultural education and
extension services. It would assist the farmers to take proper crop-care
leading to increase in crop productivity.

Ways # 8. Reduction of Population on Land:

As we know, that in our country, majority of population depends on

agriculture to earn their both ends meet. This increases the pressure of
population on land which leads to subdivision and fragmentation of land
holdings.

31
Therefore, proper climate should be generated to encourage the farm
people to start employment in subsidiary occupations. It will help to reduce
the population pressure on land. Surplus labour should be withdrawn from
agriculture sector and be absorbed in non-agricultural sector.

Ways # 9. Provision of Better Manure Seeds:

The farmers should be made familiar with the advantage of chemical

fertilizer through exhibitions and these inputs should be made easily
available through co-operative societies and panchayats. Liberal supplies of
insecticides and pesticides should be distributed at the cheap rates all over
the country side.

Ways # 10. Land Reforms:

It is also suggested that efforts should be made to plug the loopholes in the
existing land legislations so that the surplus land may be distributed among
the
small and marginal farmers. The administrative set-up should be
streamlined and corrupt elements should also be punished. It will help to
implement the law properly.

Ways # 11. Co-operative Farming:

To check the sub-division and fragmentation of holding, the movement of

co-operative farming should be launched. Co-operative farming would
result in the adoption of modern technology on so-called big farms. In this
way, agriculture will become profitable occupation through economies of
large-scale farming.

32
Ways # 12. Development of Cottage and Small Scale Industries:

In rural areas, more emphasis should be made to set up cottage and small
scale industries. This will raise the income of the peasants and keep them
busy during the off season.

The Indian government’s commitment to agriculture is a global success

story. Since Independence in 1947, India has succeeded in significantly
reducing the number of people living in poverty. In the early 1960s, India
introduced “Green Revolution” technologies: high-yielding grain varieties,
fertilizer, pesticides and irrigation. By the early 1990s, India was self-
sufficient in food-grain production. But not everyone has enough access to
the food produced, and India is still the country with the poorest people on
our globe: of India’s 1028 million people (in 2001), around 300 million
people were classified as “poor”.

A pathway out of poverty for India’s rural poor these live in rural areas.
India’s ability to reduce poverty. Most people in rural India depend directly
or indirectly on farming for their livelihood. Despite this, not enough
attention has been given to agriculture to overcome poverty. The
importance of agriculture to stimulate rural growth is generally accepted,
but politicians have failed to establish the necessary frame conditions for
rural economic growth. It is widely accepted that agricultural growth and
human development (in the fields of education, health and women’s issues)
are key factors for rural development. The World Bank, the Food and
Agriculture Organization of the United Nations, the International Fund for
Agricultural Development, as well as bilateral development agencies agree

33
that investment in agricultural growth helps reduce poverty and ensure pro-
poor growth more than any other form of intervention.

The agricultural sector has potential to create economic growth in rural

areas. It generates job opportunities in adding value (as in the food
processing industry), in bringing agricultural products to the consumer
(market linkages), and in providing support (infrastructure, information,
quality control and training).

Rising populations mean more demand for food. Improved demand for
quality food (more meat, dairy products and organic food). If these
demands are to be met, national farm outputs must rise, and farmers must
produce different types of products. In addition, access to food must be
improved for those who still cannot meet their basic needs, wherever they
live – in remote rural areas, marginal areas or urban slums.

1. The Need to Improve Agricultural Productivity

 Severe hunger and poverty affects nearly 1 billion people around the world.

 By 2050, it’s estimated that the earth’s population will reach 9 billion. Global food
production will need to jump by 70 percent to 100 percent to feed these people. Rising
incomes, increasingly scarce resources, and a changing climate are putting additional
strains on agricultural productivity.

 Two billion people in the developing world are malnourished. Malnutrition continues to
be the world’s most serious health problem and the single biggest contributor to child
mortality.

34
 The power of investing in agriculture is clear: Agricultural development is two to four
times more effective at reducing hunger and poverty than any other sector

35
 Review of Literature
Review of literature is an important aspect of research work as it helps in
understanding specific problems and in drawing some hypotheses. Keeping
in this view, literature connected with the problem in hand has been reviewed
gleaning it from various sources, viz., relevant books, journals, dissertations,
reports, research projects, surveys, etc. This part of the present chapter takes
into consideration the conclusions and views of various scholars regarding
the overall performance of Integrated Rural Development Programme (IRDP)
and causes of its success or otherwise, and various drawbacks associated with
the programme. Thus, the major issues related to the criteria of identification
of the poor and its related aspects, viz., fairness/genuineness of procedure for
selection of rural poor, various loopholes, technical flaws, suggestions for
improvement, utilization of loan and bribe given for loan, etc., have been
given due attention in the review.
Kulkarni et al (1989)16 carried out a study in Bijapur district of Karnataka.
They find that different socio-economic factor affect the success of failure of
different schemes of IRDP. According to them the success of IRDP mainly
depends upon the level of education, family size, ownership of livestock,
durable assets and occupational structure. The study highlights that one of the
reasons for poor performance of IRDP was the delay in actual sanctioning of
loans and releasing of the subsidy amount by the development authorities.
They suggested that single window approach both for subsidy and loan
would reduce the time gap and transaction cost of borrowing for the
beneficiaries.
Calling it the world’s most ambitions credit-based poverty alleviation effort,
the World Bank (1989:5) attributes the failure of India’s Integrated Rural
Development Programme (IRDP) to its inability to ensure continued access
to institutional credit for disadvantaged rural households. Unless constraints,
which continue to block access of the poor to institutional finance, are not
removed effectively, the window of opportunity to banking services offered
by the IRDP will remain closed. Welfare gains derived thus far by
beneficiaries of their IRDP are likely to be short lived without the
opportunity to replenish working capital and undertake additional investment,
using term credit.
Thippaiah and Devendra Babu (1986)17 have come out in their study with
some major defects in the implementation of the programme Non-
identification of proper persons as beneficiaries, non-availability of trained

36
personnel, misuse of loans and poor repayment position and lack of
infrastructural facilities are some of such defects.
Rao and Natarajan (1988)18 in their study on evaluation of impact and
progress in implementation of IRDP in Warangal district note the
deficiencies prevailling in IRDP. Their study brings to the limelight various
deficiencies in the whole chain of IRDP in the district which are under-
financing, providing cash credits by violating the norms, lack of supervision,
lack of knowledge on the part of the beneficiaries to utilize the assets lack of
adequate training to the schemants, the IRDP loans not being utilized to the
extent of their real objectives
Mohansundaram (1988)19 conducted an evaluative study in two blocks of
Coimbatore district of Tamil Nadu, entitled “How IRDP schemes can be
batter implemented ?” He suggests some important measures regarding
effective implementation of IRDP schemes. He states that very low
perception of the rural poor indicates the dire need for increasing awareness
among them about the special schemes meant for their welfare. The
lackadaisical attitude of the implementation machinery should also be
changed. Selecting deserving and bonafide beneficiaries by conducting
household surveys, credit camps and involvement of Gram sabhas, etc. will
ensure assisting of right beneficiaries. The major advantages of such
exercises are cutting across the dominance of intermediaries and avoidance of
leakages. This can be done by active and effective coordination among the
various village level developmental functionaries. According to him the
programme has promoted the income of the beneficiaries.
Taneja (1989)20 researches the conclusion that despite too much proclaimed
claims about the success of various anty-poverty programmes, such as IRDP,
NREP, RLGP, and TRYSEM most of the labour households are still not able
to meet their minimum consumption requirements. These are the people who
do not have a bare sufficiency of anything neither food, clothing, nor shelter,
leave alone education or medical care. The author observes that the fact we
find such utter destitution here in Panjab (reputed to be the home of India’s
most progressive farmers) raises doubt about the designing and
implementation of the poverty eradication programmes.
Singh (1988)21 in his paper entitled “Socio –Economic Impact of IRDP on
Weaker Sections in Panjab”, infers that the IRDP does have its impact on the
weaker sections. Those who took advantage of the facilities were in a better
position to improve their socio-economic life than those who did not avail
themselves of such facilities. He observes that comparatively well-off

37
sections of the society derived more benefits from IRDP than the weaker
sections.

In an evaluation study entitled “Finance under Rural Development

Programmes”, the State Bank of Patiala (1987)22 concludes that 42 among
100 persons seem to have crossed the poverty line but according to these
beneficiaries the additional income so generated has not improved their living
conditions to the desired so much that the
additional income generated has been nullified. However, almost all the
beneficiaries under the scheme admitted that they increased their annual
income and now they were living in somewhat better conditions than those
obtaining before availing of loans under the IRDP.
Rao (1987)23 states that the reduction in the extent of poverty is not
significant among those who have taken up village industries. He feels it
ambivalent that the IRDP can be successful in improving the skills of
labourers.
Regarding the nature of utilization of the IRDP loan, the State Bank of
Patiala (1987)24 on the basis of the report by the Branch Manager/ROOS has
come to the conclusion that in 98 cases the funds at the initial stage were
utilized properly, while in two cases animals were reportedly disposed of
immediately after purchase within the same cattle fair. However, 19
borrowers later on disposed of their assets and utilized the sale proceeds for
some other purpose. The study discloses that these 19 persons also actually
misutilzing the funds.
Basu (1988)25 infers that IRDP, a strong policy instrument for poverty
alleviation has brought about mixed consequences in the district of Nadia. Its
performance has varied in various areas and sectors. From identification of
beneficiaries to raising and sustaining them above the poverty line, there have
been insidences of satisfactory as also those of poor results.
Hirway (1988)26 notes the following deficiencies in the IRDP : First IRDP
emphasizes self-employment rather too much. It assumes that the poor and
especially the poorest of the poor are capable of self-employment and
managing independent enterprises successfully. This assumption is not
realistic as many of the poor are illiterates, have low risk capacity, process
little entrepreneurial abilities, and have no or very little assets. Therefore,
they are not credit worthy. They are not capable of managing enterprises

38
independently. Many of them would be better off if they are given wage
employment.

Secondly, IRDP assumes that the poor need a subsidized income generating
asset and when it is given the needs of the poor are largely satisfied. This
assumption also is
not fully correct as the asset will perhaps meet a part of their needs, but it will
not help them in meeting their urgent needs. In this sense, IRDP is a partial
approach which tends to create leakages in the working of the asset schemes
and in running of the programme successfully.
Thirdly, IRDP assumes that the special arrangements made for the poor will
reach them. It is difficult to accept that IRDP, which does not attempt to
change the prevailing socio-economic system in which it operates, will
change the process of percolation of economic programmes in favour of the
poor. The planning component of IRDP also is found to be weak. First of all,
there is no systematic approach regarding allocation of IRDP funds among
various schemes, various areas and households. There is no provision in
IRDP which provides for allocation of resources. To allocate specific
schemes to the poor households mainly on the basis of their own demands is
definitely not a sound way of planning.
Rao (1987)27 points out that the IRDP in Maheswaran block of Ranga
Reddy district has achieved partial success only. According to him, the
absence of a proper set-up at the block level was hindering the planning and
implementation of programmes. Although the programmes chosen were
based on the capacity and preference of the beneficiaries, they were neither
integrated properly nor did they form part of any long term strategy. There
was no scope of community involvement in planning the rural development
programmes and the emphasis was only on giving subsidies to the rural poor
from available funds.
Devi’s study (1986)28 holds that the IRDP as an anti-poverty programme is
good in intention but intention alone is not enough to cater to the needs
adequately. Measurement of poverty in absolute terms, i.e. in terms of per
capita income required to meet subsistence needs of the family is essential
but it has limited utility. Having defined and measured poverty purely in
economic terms, there is no need to have social categories within the poor
such as SCs, backward classes and others. The only relevant and meaningful
categories for the purpose of providing appropriate capital assistance under

39
IRDP are landless agricultural labourers, artisans and small farmers. In fact,
there is every reason to exclude small farmers with more than one hectare of
land from the category of poor as they have less coercion, different priorities
and more potential to develop independently without any external assistance.
The more homogeneous are the poor in their needs and priorities, the more
efficient will be the transfer of IRDP inputs to them and the more effective
will be the programme.

Since the immediate goal of all the antipoverty programmes is to improve

income or financial condition of the poor, the ultimate goal clutches will have
to be to free them from the clutches of the upper caste or class and thereby
reduce the degree of their despondence and exploitative elements of the
system in economic, social and political terms. One should not forget that the
poor are really poor due to some serious and real constraints which can not be
overcome overnight and there is a cumulative effect of disadvantages leading
to deprivation and both of them leading to despondence and dependence at
the end. It may also be essential to organize the identified poor, encourage
their own leadership and get them involved in decision making which
ultimately encourage them with a view to avoiding the feeling of alienation
and poorlessenss. Hence, the need was to create a sense of competence which
is so decisive for the success of any anti-poverty programme.
Sidhu (1986)29 concludes that the income generation under IRDP indicates
that income generation under IRDP indicates that there were only 22 per cent
of families whose income was between Rs. 2,001 and Rs. 3,000. At the same
time, there were 20 families whose one or more members were in
government job. These members earn from Rs. 7000 to Rs 8000 per year.
Moreover, there were five families whose land exceeded the unit of small and
marginal farmers and they owned tractors. Thus, it is not the IRDP which has
increased the income but they were already living above the poverty line.
Moreover, some beneficiaries were running small businesses and should not
have been given assistance under IRDP.
Through their study, Satanarayan and Peter (1985)30 arrive at the
conclusion that among various apparent constraints, uneven, untimely and
inadequate financial and supervisory support for the IRDP schemes, the
traditional dominance of the rich and powerful political personnel links in the
rural areas, expanding population illiteracy and unemployment inherent
inferiority complex and lack of enthusiasm and

40
confidence among the rural poor are the significant factors mainly
responsible for the overall hindrance in the process of poverty alleviation. In
the presence of such chronic rural problems, the responsible job of managing
the IRDP schemes has rendered helpless, the socially weakers group of
village level workers and school teachers. As a result, the alignment in the
planning and implementation of the IRDP schemes could not be a properly
organized.

scope and Objectives

The objective of the present study are the followings

1. To make comparative study of various schemes of rural and

agriculture development.
2. To search out characteristics of rural poverty.

3. To identified the factors, which are affecting to the rural and

agriculture.

4. To review the performance of schemes at current time.

5. To study the various elements related to rural and agriculture

development/

I have explained here major objectives of the study. We have considered

this type of objective which purely depends on availability of data.

41
 Research Methodology

This study has an exploratory-cum-descriptive research design. This study

will be based on secondary data, which will be taken from different sources
like records of Incentive Agricultural Development Programme (IADP),
Incentive Agricultural Area Programme (IAAP), Draught Prone Area
Programme (DPAP), Small Farmers De elopement Agency (SFDA) High
Yielding varieties programme (HYVP), Integral Rural Development
Programme (IRDP) etc. DRDA (District Rural Development Agency)
records as well as Government of India and publications, Reports, of various
committees and commissions on poverty. Different studies and reports of
rural development schemes. as well as Journals, Research studies, Articles
also be used in this study. Issuing secondary data

42
 Data Interpretation
Review of Agricultural development schemes
Soil Health card Scheme (SHc)
about Scheme

Soil Health Card Scheme has been introduced in year 2014-15 to assist State
Governments to issue soil health cards to all farmers in the country. Soil
health card will provide information to farmers on nutrient status of their soil
along with recommendation on appropriate dosage of nutrients to be applied
for improving soil health and its fertility. Soil status will be assessed
regularly every 2 years so that nutrient deficiencies are identified and
amendments applied.
 Soil Health Card was launched in February, 2015.
 Soil Health Card scheme has been approved for implementation during
the remaining period of 12th Plan to provide 12 crore Soil Health
Cards to the farmers in the country.
 Soil health card is being issued every 2 years for all land holdings in
the country so as to promote balanced and integrated use of plant
nutrients.
 Nation-wide program to conduct farm level soil analysis.
objectives
 To provide information to farmers on soil nutrient status of
their soil and recommendation on appropriate dosage of nutrients
to be applied for improving soil health and its fertility.
 Provide customized crop specific recommendation for nutrient
application.
Progress
 By December, 2018, 10.48 crores Soil Health Cards has been
distributed.
Progress of Soil Health card Scheme
S. Component / year 2014- 2015- 2016- Total
N. 15 16 17
1. New Static STLs 10 93 308 411
2. New Mobile STLs 69 8 3 80
3. Setting up of Mini soil 0 0 8614 8614
testing labs
Total 79 101 8925 9105
1. Cycle-I. As on 24.01 2018, against the target of 253 lakh soil

43
 sample, 100% soil samples have been collected and tested. Against
the target of 1119 lakh soil health cards, 1048.12 lakh (i.e. 94%)
cards have been distributed to farmers.
2. Cycle-II. The 2nd Cycle of the scheme started from 1st May 2017.
As on 24.01 2018, against the target of 127.31 lakh soil sample
collection for the year 2017-18, 103.49 lakh samples have been
collected and 63.54 lakh samples tested. Against the target of 626.96
lakh soil health cards, 115.69 lakh cards have been distributed to
farmers.
Benefits of SHc and SHm Scheme
 Soil health card promote balance and judicious use of plant
nutrients.
 Soil test based applications of major, secondary and
micronutrients.
 Adoption of Integrated Nutrient Management (INM) leads to
reduction in consumption of chemical fertilizer.
 Application of fertilizer based on soil health card
recommendations decreases the use of chemical fertilizer by 8-
10%.
 Application of fertilizers on soil health card recommendation
leads to increase the yield of crops by 5-6 % and increase the
farmers income.

Pradhan mantri krishi Sinchayee Yojana (PmkSY)

about scheme
The Pradhan Mantri Krishi Sinchayee Yojana has been made
operational from 1st July, 2015 with the motto of ‘Har Khet Ko Paani’
for providing end-to –end solutions in irrigation supply chain, viz. water
sources, distribution network and farm level applications.
Department of Agriculture Cooperation & Farmers Welfare is
implementing ‘Per Drop More Crop’ component of PMKSY. The Per
Drop More Crop mainly focuses on enhancing water use efficiency
at farm level through precision/ Micro Irrigation (Drip and Sprinkler
Irrigation). Besides promoting precision irrigation and better on-
farm water management practices to optimize the use of available
water resources, this component also supports gap filling
interventions like micro level water storage or water
conservation/management activities to complement and supplement
the works under taken through various national/state level
programmes for drought proofing measures.
objectives:
 Developing a long term solution for mitigating the effect of drought
and increasing area under irrigation with motto of Har Khet Ko
Pani.
 Achieve convergence of investments in

44
*During 2017-18, so far an area of 6.09 lakh ha has been
covered under Micro Irrigation.

45
 * includes Allocated amount of Rs. 2500.00 crore (BE)
during 2017-18

Significant Achievements under Per Drop More Crop are:

Year Amount Area No. of Water Potential
Released covered Harvesting Created for
under Structures Protective
(Rs. In
MI, Created Irrigation, (in
crore)
hectare)
lakh ha
2014-15 963.55 4.25 - -
(OFWM-
NMSA)
2015-16 1556.73 5.72 18750 27835
2016-17 1991.17 8.39 38806 86490
2017-18 2495.80 6.09 65195 110000
(as on
30.1.2018)
irrigation at the field level
 Expand cultivable area under assured irrigation
 Improve on-farm water use efficiency to reduce wastage of water
 Enhance the adoption of precision irrigation and other water saving
technologies (More crop per drop),
 Promote sustainable water conservation practices etc.
other initiatives:
 District Irrigation Plans (DIPs) are the cornerstone for integrated
planning and implementation of PMKSY. District irrigation
plans (DIP) for all 675 districts have been prepared which
covers almost all the agricultural dominated districts of the
country.
 An Android based Bhuvan integration app viz. BHUVAN PDMC
has been developed in collaboration with NRSC, Hyderabad for
geo-tagging of interventions/ assets created under PMKSY.

kisan credit card

about scheme

46
 In order to ensure that all eligible farmers are provided with hassle
free and timely credit for their agricultural operation, Kisan Credit Card
(KCC) scheme was introduced in 1998-99. Marginal farmers, share
croppers, oral lessee and tenant farmers are eligible to be covered under
the Scheme.
objectives
To meet the short term credit requirements for cultivation of
crops, post harvest expenses, produce marketing loan, consumption
requirements of farmer household, working capital for maintenance
of farm assets and activities allied to agriculture like dairy animals,
inland fishery etc. investment credit requirement for agriculture and
allied activities like pump sets, sprayers, dairy animals etc.
eligibility
 Farmers - individual/joint borrowers who are owner cultivators;
 Tenant farmers, oral lessees & share croppers;
 Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of
farmers including tenant farmers, share croppers etc.
Progress
A total number of 4.32 crore KCCs had been converted to RKCCs
(As on 11.10. 2017)

national Food Security mission (NFSM)

introduction:
National Food Security Mission was launched in 2007-08 to increase the
production of rice, wheat and pulses by 10, 8 and 2 million tonnes,
respectively by the end of XI Plan through area expansion and productivity
enhancement; restoring soil fertility and productivity; creating employment
opportunities; and enhancing farm level economy. The Mission is being
continued during 12th Five Year Plan with new target of additional
production of 25 million tonnes of food grains comprising of 10 million
tonnes rice, 8 million tonnes of wheat, 4 million tonnes of pulses and 3
million tonnes of coarse cereals by the end of XII Plan.
objectives:
 To Increasing production of rice, wheat, pulses and coarse cereals
through area expansion and productivity enhancement in a sustainable
manner in the identified districts of the country.
 To restoring soil fertility and productivity at the individual farm level,
and

47
  To enhancing farm level economy (i.e. farm profits) to restore
confidence amongst the farmers.
area coverage under NFSM from 2017-18 onwards:
From 2016-17, NFSM is being implemented in 638 districts of 29 states.
NFSM-Rice is being implemented in 194 districts of 25 states. NFSM- Wheat
is being implemented in 126 districts of 11 states. NFSM-Pulses is being
implemented in 638 districts of 29 states and NFSM-Coarse cereals is being
implemented in 265 districts of 28 states.
interventions included under programme
 Breeder Seed production of pulses was introduced under NFSM-
Pulses programme.
 150 Seed Hubs are being implemented through IIPR Kanpur for
increasing certified seeds of indigenous production of pulses in India
through the Indian Institute of Pulses Research (IIPR), Kanpur and
their centres.
 Supplying of Minikits of pulses seed varieties not older than 10 years
free of the cost (100% share) to the farmers.
 In addition to State Governments, the ICAR/ KVKs/SAUs also involve
in conducting the demonstrations on improved latest package of
practices of pulses.
 15% allocation is earmarked for pulses under NFSM for production of
quality seeds through State Governments.
 The government has decided to create a buffer stock of pulses to
control fluctuation of prices of pulses. Procurement has already started
through the Department of Food and Consumer Affairs.outcome:
 As per the target, NFSM has achieved the bumper production of rice
(110.15 million tonnes), wheat (98.38 million tonnes), pulses (22.95
million tonnes) and coarse cereals (44.19 million tonnes), during 2016-
17 as per 4th advance estimates. The total foodgrains production
achieved during 2016-17 is 275.68 million tonnes i.e. (9.6%) increase
against last year.

48
mission for integrated development of Horticulture (MIDH)
about Scheme
Mission for Integrated Development of Horticulture (MIDH) launched in
2014-
15 is a Centrally Sponsored Scheme for the holistic growth of the horticulture
sector covering fruits, vegetables, root & tuber crops, mushrooms, spices,
flowers, aromatic plants, coconut, cashew, cocoa and bamboo. Under
National Horticulture Mission (NHM) scheme Government of India (GOI)
contributes 60% of total outlay and 40% share are contributed by State
Governments for developmental programmes. Under Horticulture Mission
for North Eastern and Himalayan State (HMNEH) scheme, GOI contribution
is 90% and 10% share is contributed by State Governments. Similarly under
National Horticulture Board (NHB), Coconut Development Board (CDB),
Central Institute for Horticulture (CIH), Nagaland and the National Level
Agencies (NLAs), GOI contribution is 100%.
Major interventions and initiatives of MIDH for doubling of farmers’
income are increased focus on supply of quality planting material, increasing
productivity through protected cultivation and proper management practices,
promoting sustainable horticulture, post harvest management (PHM)
infrastructure including development of cold chain, linking farmers to
market, aggregation of farmers
into FPOs/FIGs and promoting their tie up with Market Aggregators (MAs)
and Financial Institutions (FIs) also encourage the farmer groups
(FPOs/FIGs) own the entire value chain from farm gate to market. Focus is
also on specific value chain management and precision farming, bridging
skill gap by skill development training, making MIDH DBT compliant and
ICT based MIS and monitoring. Emphasis is also on development of crop
specific projects based on entire value chain (from farm to market) in the
states.
objective
 Promote holistic growth of horticulture sector, including bamboo and
coconut through area based regionally differentiated strategies which
includes research, technology promotion, extension, post- harvest
management, processing and marketing in consonance with
comparative advantage of each State/region and its diverse agro-
climatic features;

49
  Encourage aggregation of farmers into farmer groups like FIGs/FPOs
and FPCs to bring economy of scale and scope.
 Enhance horticulture production, augment farmers, income and
strengthen nutritional security;
 Improve productivity by way of quality planting material and water use
efficiency through Micro Irrigation.
 Support skill development and create employment generation
opportunities for rural youth in horticulture and post-harvest
management, especially in the cold chain sector.
major achievements under MIDH.
 Area expansion : 463651 ha
 Rejuvenation :
79356 ha
 Protected cultivation : 109766 ha
 Adoption of Organic Farming : 23704ha
 IPM : 319357ha.
 Nurseries: 265Nos.
 Water Resources: 17021Nos.
 Horticulture Mechanization: 100695Nos.
 Beekeeping: 472740Nos.
 Market infrastructure: 1991Nos.
 Training of Farmers: 353298Nos.
 Post-harvest Management infrastructure: 28167Nos.

national agriculture market (e-nam)

Under the scheme, a pan India electronic trading portal (e-NAM) is deployed
in selected regulated wholesale markets in States across the country and 585
markets are proposed to be integrated with e-NAM by March, 2018. E-NAM
is reformed linked scheme and States are required to carry out pre-requisite
reforms to enable
 a Single licence to be valid across the State,
 Single point levy of market fee, and
 Provision for electronic auction as a mode of price discovery.
Small Farmers’ Agribusiness Consortium (SFAC) to act as the Lead
Promoter of NAM.

50
Progress
 On 14th April, 2016, Hon’ble Prime Minister Sh. Narendra Modi
launched the pilot of e-NAM on the 125th Birth Anniversary of
Baba Saheb Dr. Bhimrao Ambedkar in 21 markets of 8 states.
 National Agriculture Market (e-NAM) scheme was approved on 1st
July, 2015 with an initial allocation of Rs. 200 crore to link
585 wholesale APMCmandis across the country through a common
e-platform.
 National Agriculture Market (NAM) is a pan-India electronic
trading portal which networks the existing APMC and other market
yards to create a unified national market for agricultural
commodities.
 The Central Government offers one time grant to the States /
UTs up to Rs.30.00 lakh per market, based on their DPR for
purchase of hardware, internet connection, assaying equipment
and related infrastructure.
 An additional grant of Rs. 45 lakh per mandi is envisaged in the
budget announcement of 2017-18 for installation of sorting,
grading, & packing facility and compost unit in the E-NAM
Mandis.
 In principle approval given to integrate 630 mandis in 18 States,
UTs with e-NAM.
To facilitate assaying of commodities for trading on e-NAM, common
tradable parameters have been developed for 90 commodities
 By 26th January, 2018, total 152 lakh tonnes of agricultural
produce worth Rs. 36587 crores has been recorded; 74 lakh
farmers, 1.01lakh traders and 53169 commission agents were
registered on e-NAM platform

Schemes of Small Farmers agribusiness consortium (SFAC)

SFAC was set up as a registered society on 18th January, 1994. Currently, the
members of SFAC include RBI, SB1, IDB1, EX1M Bank, Oriental Bank of
Commerce, NABARD, Canara Bank, NAFED etc.
SFAC is implementing the Central Sector Scheme for agribusiness
development in association with Notified Financial Institutions providing:
MILK

 Venture Capital to agribusiness projects, and assistance to farmers /

products groups for preparing bankable Detailed Project Reports
(DPR).

51
agri-Business development (aBd) through venture capital Scheme (VCA)
about scheme:
Venture Capital Assistance Scheme is being implemented to provide interest-
free Venture Capital to setup agribusiness projects and Project Development
Facility (PDF) and facilitate the promotion of agri-business projects.
objectives
 To facilitate setting up of agribusiness ventures in close association
with all Financial Institutions notified by the Reserve Bank of India
where the ownership of the Central/State Government is more than
50% such as Nationalized banks, SBI & its subsidiaries, IDBI, SIDBI,
NABARD, NCDC, NEDFI, Exim Bank, RRBs & State Financial
Corporations.
 To catalyze private investment in setting up of agribusiness
projects and thereby providing assured market to producers for
increasing rural income & employment.
 To strengthen backward linkages of agribusiness projects with
producers.
 To assist farmers, producer groups, and agriculture graduates to
enhance their participation in value chain through Project
Development Facility.
 To arrange training and visits, etc. of agripreneurs in setting up
identified agribusiness projects.
 To augment and strengthen existing set up of State and Central
SFAC.
Progress:
SFAC has extended Venture Capital Assistance support to 1910
units amounting Rs. 560.27 crore and 1,60,751 farmers have been
benefited . It has resulted in direct employment generation to 87,223
persons. Under the scheme, during 2017-18, SFAC has extended
equity support to 87 agripreneurs amounting Rs. 79.90 crore.

equity grant Scheme (egS) For Farmer Producer companies (FPCS)

about scheme
MILK

Equity Grant Scheme extends support to the equity base of Farmer

Producer Companies (FPCs) by providing matching equity grants.
The EGS shall be operated by Small Farmers' Agri Business
Consortium (SFAC). The Equity Grant Scheme enables eligible

52
 FPCs to receive a grant equivalent in amount to the equity
contribution of their shareholder members in the FPC subject to a
maximum of Rs. 10.00 lakh per FPC in two tranche. The Scheme
shall address nascent and emerging FPCs, which have paid up
capital not exceeding Rs. 30 lakh as onthe date of application.
In order to support the equity base of FPCs, a matching Equity
Grant upto a maximum of Rs 15 lacs is given to FPCs.
Equity Grant shall be a cash infusion equivalent to the amount of
shareholder equity in the FPC subject to a cap of Rs. 10 lakh per
FPC. Equity Grant sanctioned shall be directly transferred to the
Bank account of the FPC. The FPC shall, within 45 days of the
receipt of the Equity Grant, issue additional shares to its shareholder
members, equivalent in value to the amount of the Grant received by
it.
objectives :
 Enhancing viability and sustainability of FPCs.
 Enhancing credit worthiness of FPC.
 Enhancing the shareholding of members to increase their
ownership and participation in their FPC
Progress:
In order to support equity base of FPCs , a matching grant up to a
maximum of Rs. 10 lakh is given to FPCs. During 2014-17, equity
grants have been sanctioned to 154 Farmers producing Companies
(FPCs). During 2017-18, SFAC has extended equity grant to 204
FPCs have been extended.

credit guarantee Fund Scheme (CGFS) about scheme:

Credit Guarantee Fund has been set up with the primary objective of
providing a Credit Guarantee Cover to Eligible Lending Institutions (ELI's)
which are providing collateral free loans to Farmer Producer Companies
(FPCs). The Credit Guarantee Fund offers a cover of 85% to loans extended
by banks to FPCs without collateral, upto a maximum of Rs. 1.00 Crore.
objectives
 To provide a Credit Guarantee Cover to Eligible Lending Institution
(ELI) to enable them to provide collateral free credit to FPCs by
minimising their lending risks in respect of loans not exceeding Rs.
1.00 Crore.
 To enable FPC to get collateral free loan by providing credit guarantee
to ELI's.

53
Progress:
During 2014-17, a total of 26 FPCs have taken benefit under the scheme.

Farmer Producer organizations (FPOS) about scheme

The concept of ‘Farmer Producer Organizations (FPO)’
consists of collectivization of producers especially small and marginal
farmers so as to form an effective alliance to collectively address
many challenges of agriculture such as improved access to
investment, technology, inputs and markets. Farmer Producer
Organizations registered under the special provisions of the Companies
Act, 1956 as the most appropriate Institutional form around which the
mobilization of farmers is to be made for building their capacity to
collectively leverage their production and marketing strength.
The formation and development of FPOs will be actively encouraged
and supported by the Central and State Governments and their agencies,
using financial resources from various Centrally sponsored and State-
funded schemes in the agriculture sector agencies. This goal will be
achieved by creating a coalition of partners by the concerned promoter
body, involving civil society institutions, research organisations,
consultants, private sector players and any other entity which can
contribute to the development of strong and viable producer owned
FPOs.
objectives
 To promote economically viable, democratic, and self governing
Farmer Producer Organisations (FPOs).
 To provide support for the promotion of such FPOs by qualified and
experienced Resource Institutions.
 To provide the required assistance and resources – policy action,
inputs, technical knowledge, financial resources, and infrastructure – to
strengthen these FPOs.
 To remove hurdles in enabling farmers’ access the markets through
their FPOs, both as buyers and sellers.
 To create an enabling policy environment for investments in FPOs to
leverage their collective production and marketing power
Progress
MILK

 As on 31st Dec, 2017, against a target of 7.83 lakh farmers to be

mobilized, 6.99 lakh small & marginal farmers have been identified
and formed into 41,094 Farmer Interest Groups (FIGs). These FIGs
further have been federated into FPOs and so far 693 FPOs have been
registered and 109 are under the process of registration.

54
  443 FPOs have been registered during 2014 to 2017 as compared to
223 FPOs during 2011-14 with total increase of 98.65%
collectivization of farmers.
Scheme for Farmer Producer companies.
SFAC is also taking up the implementation of the Equity Grant and Credit
Guarantee Fund Scheme for Farmer Producer Companies which was
approved by the EFC during 2013-14.
This scheme will enable registered farmer producer companies to access
equity grant to double member equity upto a maximum limit
of Rs.10.00 lakhs. The scheme also provides a credit guarantee to
financial institutions which extend loans to producer companies
without collateral upto Rs.1.00 crore.
SFAC is organizing awareness camps to publicize the Equity
Grant and Credit Guarantee Fund Scheme all over India.
Progress
In order to support the equity base of FPCs, a matching equity
Grant up to maximum of Rs. 15 lakh is given to FPCs. During 2014
-17, equity grants have been sanctioned to 154 Farmers Producers
Companies (FPCs).

Price Support and Procurement

Budget 2018-19 had announced that broad based procurement operation
strengthened it after holding comments from the states.
Minimum Support Price (MSP)-
Minimum Support Price (MSP) is a form of market intervention by
the Government of India to insure agricultural producers against
any sharp fall in farm prices. The minimum support prices are
announced by the Government of India at the beginning of the
sowing season for certain crops on the basis of the recommendations
of the Commission for Agricultural Costs and Prices (CACP). MSP
is price fixed by Government of India to protect the producer -
farmers - against excessive fall in price during bumper production
years. The minimum support prices are a guarantee price for their
produce from the Government. The major objectives are to support
the farmers from distress sales and to procure food grains for public
distribution. In case the market price for the commodity falls below
MILK

the announced minimum price due to bumper production and glut in

the market, government agenciespurchase the entire quantity offered
by the farmers at the announced minimum price.
The Price Support Policy of the Government is directed at
providing insurance to agricultural producers against any sharp fall
in farm prices. The minimum guaranteed prices are fixed to set a

55
 floor below which market prices cannot fall. Till the mid 1970s,
Government announced two types of administered prices :
 Minimum Support Prices (MSP)
 Procurement Prices
The MSPs served as the floor prices and were fixed by the
Government in the nature of a long-term guarantee for investment
decisions of producers, with the assurance that prices of their
commodities would not be allowed to fall below the level fixed by
the Government, even in the case of a bumper crop. Procurement
prices were the prices of kharif and rabi cereals at which the grain
was to be domestically procured by public agencies (like the FCI)
for release through PDS. It was announced soon after harvest began.
Normally procurement price was lower than the open market price
and higher than the MSP. This policy of two official prices being
announced continued with some variation upto 1973-74, in the case
of paddy. In the case of wheat it was discontinued in 1969 and then
revived in 1974-75 for one year only. Since there were too many
demands for stepping up the MSP. In 1975-76, the present system
was evolved in which only one set of prices was announced for
paddy (and other
Commodity Variety 2014 201 201 201 Absolute and
-15 5-16 6-17 7-18 % change in
MSP 2017-18
over 2014-15
KHARICROP (Rs per
S quintal)
ARHAR(Tur)
URAD 4350 4625 5050 5450 1100(25.3)
RAGI 4350 4625 5000 5400 1050(24.1)
MOONG 1550 1650 1725 1900 350(22.6)
SOYABEEN 4600 4850 5225 5575 975(21.2)
SESAMUM 2560 2600 2775 3050 490(19.1)
PADDY 4600 4700 5000 5300 700(15.2)
BAJRA Common 1360 1410 1470 1550 190(14.0)
PADDY 1250 1275 1330 1425 175(14.0)
NIGERSEED Grade 'A' 1400 1450 1510 1590 190(13.6)
GROUNDNU 3600 3650 3825 4050 450(12.5)
T IN SHELL
JOWAR 4000 4030 4220 4450 450(11.3)
Maldandi 1550 1590 1650 1725 175(11.3)
SUNFLOWER Hybrid 1530 1570 1625 1700 170(11.1)
SEED
MAIZE 3750 3800 3950 4100 350(9.3)
COTTON 1310 1325 1365 1425 115(8.8)
Medium 3750 3800 3860 4020 270(7.2)
Staple
RABI CROPS Long 4050 4100 4160 4320 270(6.7)
Staple

56
GRAM
MASUR 3175 3500 4000 4400 1225(38.6)
(LENTIL)
SAFFLOWER 3075 3400 3950 4250 1175(38.2)
RAPESEED/ 3050 3300 4100 1050(34.4)
MUSTARD
BARLEY 3100 3350 3700 4000 900(29.0)
WHEAT 1150 1225 3700 1410 260(22.6)
1450 1525 1325 1735 285(19.7)
1625
kharif crops) and wheat being procured for buffer stock
operations.
Government fixes the Minimum Support Prices (MSPs) of major
agricultural crops after taking into account the recommendations
of the Commission for Agricultural Costs & Prices (CACP). The
Commission is mandated to recommend MSPs for 22 Agricultural
Commodities and Fair and Remmunerative Price(FRP)
ofsugarcanetakenintoconsideration the cost of production (CoP),
overall demand- supply, domestic and international prices, inter-
crop price parity, likely effect of the price policy on the rest of the
economy and rational utilization of land, water and other production
resources. Thus, pricing policy i.e. the exercise of MSP is not based
on cost only though the cost is an important determinants of MSP.
During last three following crops MSP were given as under:

Procurement of Foodgrains (department of Food & Public distribution)

Procurement operations are seasonal - Kharif Marketing Season
(KMS) starts from 01st October and lasts upto next 30th September
of a year. Paddy / Rice and Coarse grains like jowar, bajra, ragi &
maize are procured during the KMS.
The Rabi Marketing Season (RMS) starts from 1st April and lasts
upto next 31st March of a year. Mostly, wheat and sometimes barley is
procured during RMS.

Price Support Scheme (PSS)

Price Support Scheme (PSS) is implemented for procurement of oil
seeds, pulses and cotton through Central Nodal Agencies at the
Minimum Support Price (MSP) declared by the Government. This
scheme is implemented at the request of the concerned state
government, which agrees to exempt the procured commodities
from levy of mandi tax and assist central nodal agencies in logistic
arrangements including gunny bags, provide working capital for
state agencies, creation of revolving fund for PSS operations etc. as
required under the Scheme guidelines. The basic objectives of PSS
are to provide remunerative prices to the growers for their produce
with a view to encourage higher

57
 investment and production and to safeguard the interest of consumers by
making available supplies at reasonable prices with low cost of
intermediation.

ministry of Food Processing industries (MOFPI)

Pradhan mantri kisan SamPada Yojana
Government of India (GOI) has approved a new Central Sector
Scheme – Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-
Marine Processing and Development of Agro-Processing Clusters) with
an allocation of Rs. 6,000 crore for the period 2016-20 on 3 May 2017
coterminous with the 14th Finance Commission cycle. The scheme is
being implemented by Ministry of Food Processing Industries (MoFPI).
PM Kisan SAMPADA Yojana is a comprehensive package
which will result in creation of modern infrastructure with
efficientsupply chain management from farm gate to retail outlet. It
will not only provide a big boost to the growth of food processing
sector in the country but also help in providing better process to
farmers and is a big step towards doubling of farmers income,
creating huge employment opportunities especially in the rural
areas, reducing wastage of agricultural produce, increasing the
processing level and enhancing the export of the processed foods
The following schemes will be implemented under PM Kisan
SAMPADA Yojana
 Mega Food Parks.
 Integrated Cold Chain and Value Addition Infrastructure.
 Creation / Expansion of Food Processing & Preservation
Capacities.
 Infrastructure for Agro-processing Clusters.
 Creation of Backward and Forward Linkages.
 Food Safety and Quality Assurance Infrastructure.
 Human Resources and Institutions.
output
PM Kisan SAMPADA Yojana is expected to leverage investment
of Rs. 31,400 crore for handling of 334 lakh MT agro-produce
valued at Rs. 1,04,125 crore, benefiting 20 lakh farmers and
generating 5,30,500 direct/indirect employment in the country by
the year 2019-20

national cooperative development corporation (NCDC)

National Cooperative Development Corporation (NCDC), a
Statutory Corporation was established on 14.03.1963 under an Act of
Parliament (NCDC Act of 1962) for economic development through
cooperative societies. NCDC is primarily focused on the cooperatives

58
in the agriculture and allied sectors. These cover the complete value
chain from “farm to shelf ” including production, processing, marketing,
storage, cold-chain, for agricultural and allied produce besides other
inputs such as fertilizer, seeds, banking etc. and other sectors such as
energy, rural housing and forest produce.
NCDC is playing key role in doubling the farmers’ income through
cooperatives.
The promotional and developmental functions of NCDC aim at
creating eco- systems for agriculture and allied sector stakeholders for
successful conceptualization and implementation of developmental
schemes and projects in cooperative sector. NCDC provides financial
assistance for economic development of agriculture and allied sectors
through cooperative societies. It also provides assistance for capacity
building and upgradation of skills of personnel involved in the
cooperatives.
Financial assistance in the form of subsidy is being provided
through NCDC for improving the economic conditions of
cooperatives particularly in the less developed and under
developed regions, removing regional imbalances, to speed up
cooperative development in agricultural marketing, processing
and storage, cold-chain development, computerization of Primary
Agricultural Cooperative Credit Societies(PACS), cotton
development, establishment of new as well as modernization /
expansion / rehabilitation of existing cooperative spinning mills,
ginning and pressing units, promotion and development of
selected districts in the country through cooperative efforts etc.
Progress
 Over the years, disbursements of NCDC financial assistance are
growing. NCDC made an all time high release of Rs. 15914 crore
during 2016-17. During Current financial year 2017-18
disbursement targets have already been surpassed. Disbursements
of Rs. 19758.89 crore have been achieved against the target of Rs.
8000.00 crore till 13/02/2018.
 NCDC has provided cumulative financial assistance of Rs.
94407.61 crore. Out of total cumulative assistance of Rs. 94407.61
crore since 1963, 51.40% i.e. Rs. 45880.86 crore assistance has
been provided since 2014-15.
 Net NPA of zero percent maintained during last 6 years.
 Recovery percentage maintained above 99.50%
 NCDC is a ISO 9001:2008 compliant organisation from October
2014 and has upgraded its Quality Management System in
conformity with the ISO 9001:2015, the latest ISO Standard since
December 2016

59
Pradhan mantri Fasal Bima Yojna (PMFBY)
The erstwhile Crop Insurance Schemes have been reviewed in
consultation with various stakeholders including States/ UTs. As a result of
the review, a new scheme “Pradhan Mantri Fasal Bima Yojana (PMFBY)
has been approved for implementation from Kharif 2016 along with pilot
Unified Package Insurance Scheme (UPIS) and Restructured Weather
Based Crop Insurance Scheme (RWBCIS).
Under the PMFBY, the premium rates to be paid by farmers are very
low and balance premium will be paid by the Government, to be shared
equally by State & Central Government, to provide full insured amount to
the farmers against crop loss on account of natural calamities. There is no
upper limit on Government subsidy
Features

 Covers all food grains, oilseeds and annual commercial/Horticultural

crops.
 One season one rate – a uniform maximum premium of 2% for Kharif,
1.5% for Rabi, Food & Oil seed crops and 5% for Annual
Commercial/Horticultural Crops.
 Covers all risks of crop cycle – preventive sowing; risk to standing
crops and post- harvest losses.
 For losses due to hailstorm, landslide and inundation assessment of
yield losses at individual field level.
Post-harvest losses for cut& spread crops on field upto 14 days due
to cyclone/cyclonic& Farmers Welfare (DAC&FW) is mandated to
coordinate relief measures necessitated by drought, hailstorm, pest
attack, frost/cold wave. Spatial distribution and quantum of rainfall
during South-West Monsoon (June- September) mainly determines
the incidence of drought in the country, as South West Monsoon
accounts for more than 70% of annual rainfall
A Manual for Drought Management was published in the year
2009 by the Department revised in 2016 through a
consultative process, involving the concerned Central Ministries
Departments, State Governments, Scientific, Technical and
Research Organizations.
Department of Agriculture, Cooperation and Farmers Welfare
(DAC&FW) is mandated to coordinate relief measures
necessitated by drought, hailstorm, pest attack and cold
wave/frost.
The revised items and Norms for assistance State Disaster
Response Fund (SDRF) and National Disaster Response Fund
(NDRF), for the period 2015-16 to 2019-20, was intimated to
all State Governments by Ministry of Home Affair (MHA).
A Drought Management Plan (DMP) as required under Disaster
Management Act, 2005, has been prepared keeping in view the
60
 theme of national Platform for Disaster Risk Reduction
(NPDRR) to achieve “Disaster Risk Reduction for Sustainable
Development : Making India Resilient by 2030.”.

Progress:
 Need for assistance for all categories has increased by 1.5 times.
 Threshold admissibility assistance raised from 1ha to 2 ha in all
cases.
 The financial assistance paid to the farmers in the event of death
increased to Rs, 4 lakh from Rs. 1.5 lakh.
 Assistance for fund under National Disaster Response fund was Rs.
30101 crore during 2014-2017

risk management & insurance in animal Husbandry and dairying

Providing protection mechanism to the farmers / BPL / SC / ST /
landless livestock rearers against any eventual loss of their Indigenous /
crossbred milch animals, pack animals and other livestock (Goat,
Sheep, Pigs, Rabbit, yak and Mithun) animals due to death.
Progress
 Since 2014-15, Livestock Insurance Scheme is covered all the
Districts of India and all the animals (Milch Cattle, Small animals
and Pack animals) have been covered for insurance.
 Premium rate of Insurance is 3%-4.% for one year and 7.5% -
10.5% for three years based on different category and areas.
 Since 2014-17, 26.80 lakh animals have been insured and Rs. 81.95
crore release to States for Livestock Insurance Scheme.
 Insurance Value for Milch Animals on the basis of lactation of
animal from Rs. 3000 per litre for cow and Rs. 4000 per litre for
Buffalo.
 Payment after loss of animal within 15 days otherwise penalty of
12% compound interest to the beneficiaries.
 Focus on landless farmers, BPL, SC, ST and Women farmers so
that benefit of insurance reach to last strata of society.

Support to State extension Programmes for extension reforms Scheme (atma

Scheme)
 The erstwhile Scheme ‘Support to State Extension Programmes
for Extension Reforms (ATMA)’ implemented since 2005 has now
been included as a component of the Sub-Mission on Agriculture
Extension (SMAE) under umbrella scheme”Green Revolution
Krishonnati Yojana” with some cost revisions.

61
  It is now under implementation in 676 districts of 29 states & 3
UTs of the country. The scheme promotes decentralized farmer-
driven and farmer accountable extension system through an
institutional arrangement for technology dissemination in the form
of an Agricultural Technology Management Agency (ATMA) at
district level. Under the scheme grants-in-aid is released to states
with an objective to support State Governments efforts of
revitalization of the extension system and making available the
latest agricultural technologies in different thematic areas to
increase agricultural production through extension activities viz.
Farmers Training, Demonstrations, Exposure Visits, Kisan Mela,
Mobilization of Farmers Groups and Setting up of Farm Schools.
Through these activities, latest agriculture technologies are
disseminated to farmers of the country.
Progress
This Scheme has been revised to include manpower support, roping
in the farmers’ feed back in to planning by setting up Farmer Advisory
Committees (FACs) at Block/ District & State Level and providing
farmer-to-farmer learning
and extension support through Farmer Friend.
The Modified Scheme has dedicated Specialists & Functionary
Support at State (2 at State Nodal Cell and 7 to 15 at SAMETI level
based on the number of blocks in the State/UT
), District (5 per district) & Block level (4 per Block).Various activities
supported under the Scheme for educating and creating awareness
amongst farmers include farmers trainings, exposure visits,
demonstration, Kisan Mela mobilization of farmers Interest Groups
(FIGs) and farm schools etc. Since inception of the scheme in 2005,
4.33crore farmers’ have been benefited through various farmer
oriented activities.

establishment of the agri-clinics and agri-Business centres (ACABC)

A Central Sector component, “Establishment of Agri-Clinics and
Agri- Business Centres (AC&ABC)” has been under implementation
since April, 2002 to supplement the efforts of public extension, support
agricultural development and create gainful self-employment
opportunities to unemployed youths with qualification in agriculture
and allied sectors.
The National Institute of Agricultural Extension Management
(MANAGE), Hyderabad is the implementing agency for Training
Component and National Bank for Agriculture and Rural Development
(NABARD) is the implementing agency for Subsidy Component of
AC&ABC scheme.
There is a provision of credit linked back- ended upfront
composite subsidy on the bank loan availed by trained candidates
under the Scheme. The subsidy is 44% in respect of women, SC/ST
and all categories of candidates from North-Eastern and Hill States
62
 and 36% in respect of other categories.
The subsidy is admissible for loans upto Rs.20 lakh in case of
individual and Rs.100 lakh in case of Group Projects (for ventures set
up by a group of 5 trained candidates).
The scheme promotes involvement of agri- preneurs trained under
the AC&ABC scheme in providing advisory and extension services to
the farmers in agriculture and allied areas through agriventures
established with financial supports. These agri-preneurs are actively
involved in providing advisory and extension services to the farmers on
various technologies including soil health, cropping practices, plant
protection, post harvest technology etc.
Progress
During the current year 2998 candidates have been trained and
270 have established their ventures. Since inception of the scheme,
56,542 candidates have been trained and 23,517 agri- ventures have
been established in the country till 31.12.2017 creating job
opportunities to the tune of 7337 thousand mandays. Among the
ventures established, 1915 have been granted with subsidy as on
31.12.2017. The agriventures established under the scheme are
acting as active supplementary institutions for Government
Extension mechanism in the States/UTs.

\ kisan call centers (kcc)

The KCC Scheme was launched on 21st January 2004 to provide
answer to farmers’ queries on agriculture and allied sectors through toll
free telephone lines. A country wide common eleven digit number ‘1800-
180- 1551’ has been allocated for KCC. The replies to the queries of the
farming community are being given in 22 local languages. KCCs operate
from 14 locations in the country covering all the Sates and UTs.
output
Since inception of the scheme, in the year 2004 over 353.75 lakh live
calls have been registered at the KCC till December, 2017.

Farmers’ portal (www.farmer.gov.in)

Farmers’ Portal is a one stop shop for farmers where a farmer can get
relevant information on range of topics including seeds, fertilizer, pesticides,
credit, good practices, dealer network, availability of inputs, agromet
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63
 advisory etc. This information can be drilled down through the
pictorial view of Map of India placed on the Home page as well.
While over 800 websites of various departments and
organisations related to Agriculture & allied sectors in the Central
and State Governments and 80 applications/portals of the
Department pertained to agriculture & allied sectors from
organisational and schematic view-point, not even one portal existed
for the farmers and that was the genesis of the Farmers’ Portal.
This centralized repository is the back bone of all mobile apps
and SMS advisories. This portal provides information across all
stages of crop management right from sowing of seeds till post
harvesting. The beauty of this web based portal is that one can sift
down to the block level
get the information of particular block

development of mobile apps

Spreading agricultural related information to farmers in the poorest
communities has been made easier by proliferation of mobile phones. Today,
mobile apps and services are being designed and released in different parts of
the world.Mobile apps help to fulfil the larger objective of farmers’
empowerment and facilitates in extension services which can address the

64
global food security issues.Many mobile apps have been developed for
farmers.
Kisan Suvidha App: This app provides information to the farmers on critical
parameters viz Weather, PlantProtection, Input Dealers, Agroadvisories and
Market Prices, etc. Downloads till 6th Dec, 2017: 424752

Pusa Krishi mobile app has been launched by Union Agriculture

Minister on March 21, 2016 to help farmers to get information about
technologies developed by IARI to realize the dream “LAB to LAND” of
our Prime Minister. Downloads till 6th Dec, 2017: 29086
Crop Insurance mobile app is used to calculate the Insurance
Premium for notified crops based on area, coverage amount and loan
amount in case of loanee farmer. It can also be used to get details of
normal sum insured, extended sum insured, premium details and
subsidy information of any notified crop in any notified area.
Downloads till 6th Dec, 2017:21230
AgriMarket app is use to fetch the market price of commodities
from markets within the range of 50 km of the device’s location
using mobile GPS. There is another option to get price of any market
and any crop
in case person does not want to use GPS location.Downloads till 6 th
Dec, 2017: 32148

cce agri – mobile app

CCE Agri mobile app has been developed to digitizethe
65
 information of crop cutting experiment conducted in field.
 It automatically captures the location of field through GPS.
 Photographs and data captured through the app are transfer to
web server immediately.
 Reduced claim settlement time and a level of transparency has
achieved.
 Experiments done till 6th Dec, 2017:235935

crop insurance Portal

 The only Portal for all stakeholders including Farmers,
States,Insurance Companies Banks
 Both Insurance Schemes viz.PMFBY and WBCIS Covered
 Information to Farmers on Premium, Cut Off Dates & Company
Contacts for their Crop & Location on Web and through mobile app.
 Insurance Premium Calculator and Creation of Database of Notified /
Allotted Dynamically
 Farmer’s Application for Loan / Insurance and its Integration with
Banks
 Total downloads till 6th Dec, 2017 : 21230.

rashriya krishi vikas Yojana (rkvy)

RKVY accords flexibility and autonomy to States in planning and executing
projects related to agriculture and allied sectors. States are empowered to
formulate strategies for development of the agriculture and allied sectors in a
holistic way taking into account their agro-climatic conditions so as to
effectively address their local needs and priorities, rather than continuing
with business as usual mode of “one size fits all” formula.
Besides planning and execution of projects, RKVY provides complete
flexibility and autonomy to States to customize interventions as per local
requirements.
 Government launched a revised RKVY Scheme in 2014-15 to provide
more flexibility to States for boosting investment and enhancing
productivity in agriculture and allied sectors.
 During 2014-15 to 2016-17 Maharashtra, Karnataka and Odisha have
MILK

taken up 34 projects under Public Private Partnership for Integrated

Development of Agriculture (PPPIAD).
 Geo-tagging of assets created under RKVY has been initiated with
technical support from National Remote Sensing Centre. More than
75,000 assets geotagged.

66
  The Central share of allocation for implementation of the scheme
during the current year (2017-18) is Rs. 4750 crore.
The cabinet on 1st November 2017 has approved continuation of the ongoing
centrally sponsored scheme (State Plan)-Rashtriya Krishi Vikas Yojana
(RKVY) as Rashtriya Krishi Vikas Yojana- Remuneration Approaches for
agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for three
years i.e. 2017-18 to 2019-20 with a financial allocation of Rs. 15722 crores.
RKVY-RAFTAAR's broad objectives are making farming a remunerative
economic activity through strengthening the farmer's effort, risk mitigation
and promoting agri- business entrepreneurship.

National Programme for dairy development (NPDD)

 To create and strengthen infrastructure for production of quality milk
including cold chain infrastructure linking the farmer to the consumer;
 To create and strengthen infrastructure for procurement, processing
and marketing of milk;
 To create training infrastructure for training of dairy farmers;
 To strengthen dairy cooperative societies/ Producers Companies at
village level;
 To increase milk production by providing technical input services like
cattle-feed, and mineral mixture etc;
 To assist in rehabilitation of potentially viable milk federations/unions;
Progress
Under the programme, 32 projects in 18 States have been approved with
the total outlay of Rs.353.49 crore (Central Assistance Rs249.06 crore)
against which Rs.155.99 crore has been released till 08.03.2017.This
Department has approved establishment/modification of 18.60 LLPD
capacity dairy plant, installation of 4.91 LLPD capacity chilling plant and
creation of4516 dairy cooperative society (DCS). Till date, 654.6
Thousand Liters per day (TLPD) of milk processing capacity and 186.5
TLPD milk chilling capacity have been created under the project and
1259 DCS have been organized.

MILK

6.1.

67
dairy entrepreneurship development Scheme
The Department of Animal Husbandry, Dairying and Fisheries is
implementing Dairy Entrepreneurship Development Scheme (DEDS) from
01.09.2010 with the objective of generation of self employment opportunities
in the dairy sector, covering activities such as enhancement of milk
production, procurement, preservation, transportation, processing and
marketing of milk by providing back ended capital subsidy for bankable
projects through NABARD.
objectives
 to generate self-employment and provide infrastructure for dairy
sector.
 to set up modern dairy farms and infrastructure for production of
clean milk.
 To encourage heifer calf rearing for conservation and development of
good breeding stock.
 To bring structural changes in the unorganized sector, so that initial
processing of milk can be taken up at the village level.
To upgrade traditional technology to handle milk on a commercial
scale.
To provide value addition to milk through processing and production of
milk products

Pandit deen dayal upadhyay unnat krishi Shiksha Yojna

Agricultural Education Division, Indian Council of Agricultural Research,
Department of Agriculture Research and Education. Ministry of
Agriculture and Farmers’ Welfare, Govt of India is actively
participating in the Unnat Bharat Abhiyan of Ministry of Human
Resources Development since 2015-16. Ministry of Agriculture and
Farmers’ welfare has been given responsibility to extend activities of
Organic Farming, Natural Farming and Cow based Economics. During
2015-16 ICAR has initiated Unnat Bharat Abhiyan activities related to
capacity building of different progressive farmers in the field of
Organic Farming,
130 training programmes were organised by different Agricultural
Universities on Natural Farming/Organic Farming/Cow Based
Economy. It has made a great impact at National level and the
farmers have been greatly benefited and are coming forward to
make it mass movement.
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Keeping this in view and the interest shown by the farmers, it was
decided to identify 100 farmers across the country having
knowledge, skill, ability and experiences related to Organic
Farming, Natural Farming and Cow based Economy and having
facilities to conduct training programmes.
Subsequently in year 2016-17, ICAR has initiated a new scheme
68
 Pandit Deen Dayal Upadhyay Unnat Krishi Shiksha Yojna
(PDDUUKSY) in Unnat Bharat Abhiyan with the following objectives:
 To build skilled Human Resource at village level relevant to national
needs towards organic farming and sustainable agriculture.
 Provide rural India with professional support in the field of
Organic Farming/ Natural Farming/Rural Economy/ Sustainable
Agriculture.
 To extend other activities of Unnat Bharat Abhiyan at village level
through these established centres.

Mahatma Gandhi national rural employment guarantee Scheme (MGNREGS)

A right-based programme, aims at enhancing livelihood security
by providing at least one hundred days of guaranteed wage
employment in a financial year to every household whose adult
members volunteer to do unskilled manual work. MGNREGS
resulted in creation of productive assets of prescribed quality &
durability.
The mandate of the Act is to provide at least 100 days of
guaranteed wage employment in a financial year to every rural
household whose adult members volunteer to do unskilled manual
work.
Progress
It also ensured social inclusion and strengthening of Panchayat Raj
Institutions. During this year, 4.67 crore households were provided
employment in 140.24 lakh works and in the process 187.91 crore
person-days of employment were generated. There was very high
participation from marginalized groups like SC/ ST (39%) & women
(56%). For disbursement of wages around 11.42 crore Bank & Post
Office Accounts of MGNREGA workers have been reported.

deen dayal upadhyaya grameen kaushalya Yojana (DDU-GKY)

Ministry of Rural Development's placement- linked skill training
programme announced on 25th September, 2014, refocuses and re-
prioritises NRLM'S skilling component so as to build the capacity of rural
poor youth to address the needs of both national and global skill
requirements. The scheme is expected topromote 'Make in India'
campaign by preparing skilled workforce required for it. DDU-GKY
has been aligned with the, Common Norms notified by Government.
A total of 544 projects are being undertaken in the country by 268
Project Implementing Agencies (PIAs) selected in terms of guidelines.
MILK

The Department of Rural Development implements schemes for

generation of self employment and wage employment, provision of
housing and minor irrigation assets to rural poor, social assistance to
the destitute and Rural Roads. Apart from this, Department provides
the support services and other quality inputs such as assistance for
strengthening of DRDA Administration, Training &. Research,

69
Human Resource Development, Development or voluntary action etc.
for the proper implementation of the programmes. The major
programmes of the Department of Rural Development are Pradhan
Mantri Gram Sadak Yojana, (PMGSY), Rural Housing (RE),
Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA), National Rural Livelihoods Mission (NRLM) and
National Social Assistance Programme (NSAP). New schemes of
SAGY and Rurban Mission have been in initiated.
Department of Land Resources is mandated to all land based
development programmes. It implements area development
programmes on watershed basis. The three watershed development
programmes of the Department i.e.. Integrated Wasteland
Development Programme (IWDP), Drought Prone Areas Programme
(DPAP) and Desert Development Programme (DD P) have been
consolidated into a single modified programme namely Integrated
Watershed Management Programme (IWBP).

deendayal antyodaya Yojana-national rural livelihoods mission (DAY-NRLM)

National Rural Livelihoods Mission, renamed as Deendayal Antyodaya

Yojana- National Rural Livelihoods Mission (DAY- NRLM) was launched
on 3rd June, 2011. It has a mandate to reach out to 8-10 crore rural poor
households spread across 2.5 lakh Gram Panchayats in the country. The
purpose of mobilization of women from poor households was to help them
come together, collectively discuss their issues of poverty and deprivation,
save a little regularly and improve sustainable livelihood options and
capitalize on opportunities though credit linkages and technical assistance,
Thus, the primary focus of the mission is to help women unleash their
entrepreneurial capabilities by complementing them with capacities
(knowledge, information, tools, collectivization, finance and technical
assistance). The Programme was revamped and named Deendayal
Antyodaya Yojana- National Rural Livelihood Mission in December, 2015.
Mobilization of rural poor women into Self Help Groups (SHGs) and their
federations is NRLM's key strategies for addressing rural poverty. SHGs are
homogenous groups of 5-20 women that functions on the principles or
mutual cooperation and collective action, These SHGs are federated at the
village/Panchayat, cluster and block level. The institutions provide services
(savings, credit, technical assistance for livelihood promotion) to their
members that help them strengthen and sustain livelihoods.
It is envisaged that as the SHGs and their federations mature, they create a
strong demand system for efficient and quality services, including accessing
schemes and national social security assistance, programmes. Linkageswith
mainstream institutions such as banks, local governance bodies, and
government departments help them address multiple dimensions of poverty
and deprivation. These activities enable women to improve their access to
entitlements, rights, resources and livelihood opportunities and gradually
come out of poverty.
Key processes of NRLM are driven by the institutions of rural poor women,
especially by women who have come out or poverty by this very process.

70
Thus, it is a programme for the poor women, of the poor women and by the
poor women, NRLM aims at empowering not only financially but also
socially and politically. Being a women-centric programme and also led by
women, NRLM provides a strong foundation for women's empowerment.
These institutions serve as channels for disseminating useful information to
rural women.

mahila kisan Sashaktikaran Pariyojana (MKSP)

Launched in 2010-11, is a special program for livelihood
enhancement under DAY-NRLM. It is a concerted effort to
recognize the role of women in agriculture. Investment is made to
enhance their capacities, increase their income, and encourage
participation in agriculture and allied activities. It also aims at
ensuring nutrition for poorest of the poor by securing and
strengthening the primary livelihoods basket of poorest households.
The primary objective of MKSP is to empower women in
agriculture by making systematic investments to enhance their
participation and productivity in agriculture based Iivelihoods.

roshni
Roshini was launched by Ministry of Rural Development on 10th June 2013
in a bid to further reach out to rural youth in the country's 27 most critical
Left Wing-Extremism-affected districts. It. will support a minimum of 50000
youths in these vulnerable districts.
Key features o f the Roshni initiative are as under
 Training will be imparted through public- private and public-public
partnerships with registered PlAs.
 Four residential training models with duration ranging from 3 months
to 1 year shall be taken up to meet diverse needs of youth depending
on their entry level qualifications.

Himayat for Youths in j&k

Ministry of Rural Development is undertaking scheme for skill
empowerment and employment of J&K youths called Himayat. Himayat was
launched in Srinagar on 21st August 2011 for giving training and placement
to one lakh youth in Jammu & Kashmir over a period of 5 years. The scheme
is a 100% centrally funded scheme. The Scheme is available to youth from
both BPL as well as non-BPL categories and youth from urban as well as
rural areas. Himayat is available to youths from border areas of-Jammu &
Kashmir also

71
Skill development in agriculture
initiatives of dac&FW to promote Skill development activities:
 Four Meetings of Coordination Committee on Skill Development held
on 13.10.2016, 6.2.2017, 10.4.2017 and 12.1.2018 under the
chairmanship of Additional Secretary (Extension)/ Joint Secretary
(Extn). One National level and four Regional level workshops on skill
development in agriculture to orient various stake holders were
organized in 2017.
 During 2016-17, 100 Krishi Vigyan Kendras(KVKs) and 8 National
Training Institutes of DAC&FW have been accredited with
Agricultural Skill Council of India (ASCI) for conducting 216
training courses. A budget of Rs. 3.52 crore was allotted under
Rashtriya Krishi Vikas Yojana for conducting skill training courses
during 2016-17.
 During 2017-18, additional KVKs, ICAR Institutes, SAUs and
National Training Institutes of DAC&FW have been identified for
affiliation with ASCI for conducting 115 training courses. A
budget of Rs. 2.00 crore has been concurred by IFD under 1%
contingency fund of Rashtriya Krishi Vikas Yojana.

Workshops on Skilled Development

Workshop Date Place State participated
National 5.1.2017 NASC All States
Workshop – Complex,
“Kaushal Vikas se Pusa,
Krishi Vikas” New
Delhi
Regional 12.2.201 Hyderaba AP, Telangana,
Workshop – 7 d Kerala, Karnatka,
Southern States Tamilnadu, Goa,
Maharashtra
Regional 25.5.201 Kolkata Bihar, Jharkhand,
Workshop – 7 Odisha, Sikkim &
Eastern States West Bengal
Regional 18.08.20 Jaipur Rajasthan, Gujarat,
Workshop – 17 Madhya Pradesh &
Western States Chhattisgarh
Regional 15.09.20 Chandiga Haryana, Punjab,
Workshop – 17 rh Uttar Pradesh,
Northern States Himanchal Pradesh,
Uttarakhand and
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 Jammu & Kashmir

73
 FINDING

 By December, 2018, 10.48 crores Soil Health Cards has been

distributed.
 A total number of 4.32 crore KCCs had been converted to
RKCCs (As on 11.10. 2017)
 SFAC has extended Venture Capital Assistance support to 1910
units amounting Rs.
 560.27 crore and 1,60,751 farmers have been benefited . It has
resulted in direct employment generation to 87,223 persons.
Under the scheme, during 2017-18, SFAC has extended equity
support to 87 agripreneurs amounting Rs. 79.90 crore.
 In order to support equity base of FPCs , a matching grant up to a
maximum of Rs. 10 lakh is given to FPCs. During 2014-17,
equity grants have been sanctioned to 154 Farmers producing
Companies (FPCs). During 2017-18, SFAC has extended equity
grant to 204 FPCs have been extended.
 During 2014-17, a total of 26 FPCs have taken benefit under the
scheme credit guarantee Fund Scheme .
 443 FPOs have been registered during 2014 to 2017 as compared
to 223 FPOs during 2011-14 with total increase of 98.65%
collectivization of farmers.
 PM Kisan SAMPADA Yojana is expected to leverage
investment of Rs. 31,400 crore for handling of 334 lakh MT
agro-produce valued at Rs. 1,04,125 crore, benefiting 20 lakh
farmers and generating 5,30,500 direct/indirect employment in
the country by the year 2019-20
 Since 2014-15, Livestock Insurance Scheme is covered all the
Districts of India and all the animals (Milch Cattle, Small
animals and Pack animals) have been covered for insurance.
 Premium rate of Insurance is 3%-4.% for one year and 7.5% -
10.5% for three years based on different category and areas.
 Since 2014-17, 26.80 lakh animals have been insured and Rs.
81.95 crore release to States for Livestock Insurance Scheme.
 Insurance Value for Milch Animals on the basis of lactation of
animal from Rs. 3000 per litre for cow and Rs. 4000 per litre for
Buffalo.

74
 Payment after loss of animal within 15 days otherwise penalty of
12%
 compound interest to the beneficiaries.
 Focus on landless farmers, BPL, SC, ST and Women farmers so
that benefit of insurance reach to last strata of society.
 ATMA Scheme has been revised to include manpower support,
roping in the farmers’ feed back in to planning by setting up
Farmer Advisory Committees (FACs) at Block/ District & State
Level and providing farmer-to-farmer learning and extension
support through Farmer Friend
 During the current year 2998 candidates have been trained and
270 have established their ventures. Since inception of the
scheme, 56,542 candidates have been trained and 23,517 agri-
ventures have been established in the country till 31.12.2017
creating job opportunities to the tune of 7337 thousand mandays.
Among the ventures established, 1915 have been granted with
subsidy as on 31.12.2017. The agriventures established under the
scheme are acting as active supplementary institutions for
Government Extension mechanism in the States/UTs.

75
 conclusion
India’s agro-food sector is at a critical juncture, facing multiple challenges and
multiple opportunities. The policy directions embarked on now and in the next
few years will play a huge role in determining how successful India is in
creating food security for its vast population, improving the quality of life of its
millions of smallholders, overcoming severe resource and climate pressures,
while generating sustainable productivity growth and creating a modern,
efficient and resilient agro-food system which can contribute to inclusive
growth and jobs economy-wide.
First and foremost the fate of the agro-food sector will rely on supportive,
predictable macroeconomic and structural policy settings and not exclusively on
sector-specific interventions. Quality infrastructure, education and skills, well-
functioning financial markets, strong market institutions, rule of law, excellence
in innovation systems, and integration in global markets will be needed to create
the sustained growth that will draw labour out of the sector, and create the
conditions for the development of the sector itself. Particular attention may need
to be focused on rural areas, which lag behind urban areas, according to many
indicators of development and well-being. Agriculture and food policy settings
also need re-alignment to reflect the changing nature of the sector’s role in a fast
growing economy with a significant and growing middle class, and India’s
expanding role and influence regionally and globally.
This report has revealed some incoherence in policy settings – some of them
inherent in the way goals have been articulated, others in the way policies have
been designed and implemented. This is starkly reflected in the PSE indicator
estimated for the purposes of this study. It comprises significant positive
transfers to producers mainly in the form of input subsidies and significant
negative transfers to producers as a result of the prices for many commodities
being lower than international benchmarks. While these transfers tend to cancel
each other arithmetically in the value of the PSE indicator, they are cumulative
in their distortive effects on the economy. There is a fundamental difficulty in
trying to keep prices low for consumers while ensuring remunerative returns to
farmers. Another example relates to measures to resolve water scarcity which
co-exist alongside subsidies for the electricity used to pump water which is
wasteful use of scarce budgetary resources and may exacerbate the underlying
problem. If the overarching goals of achieving sustainable productivity growth
in the sector and ensuring food security are to be achieved, ineffective and
wasteful interventions will have to be scaled back, and scarce public resources

76
applied where they are capable of generating the highest returns for farmers and
for the economy as a whole.
The costs and risks associated with a failure to align policies, and associated
scarce budgetary resources, to the goals of food security, sustainable
productivity growth and climate change adaptation are potentially large. Co-
ordination towards a common vision is vital, so that shared priorities and policy
efforts that respond to them can be developed. Governance arrangements
around policy-making for agriculture and food are not very conducive to the
creation of consistent and joined-up policy frameworks. In this respect, efforts
could be stepped up to clarify roles and reduce fragmentation and overlapping.
Stronger co-ordination mechanisms among Ministries, Departments and
agencies would also be helpful, and between States and UTs and the central
government.
Because of India’s federal structure, the weight of the agricultural population in
the total, the vibrancy of India’s democracy, the pervasive nature of government
intervention to date, and many other economic, social and cultural factors,
particular attention will have to be paid to the political economy of efforts to
change the focus of policies for the agricultural and food sector. Inter alia, this
would require strengthening the institutional framework to eliminate duplication
and fragmentation, considerable investment in forging consensus about shared
goals and how to achieve them, including between the centre and the states,
gradual and progressive dismantling of obsolete or inefficient policy
instruments and implementation of new ones with careful sequencing, the
development of strong transparency and consultation mechanisms involving a
broad range of stakeholders, strong political commitment to maintain new
policy directions once changes have been set in motion, continuous
communication about intended next steps and monitoring and reporting of
outcomes.
Against this background, this report suggests a series of reforms which, if
implemented, would: create a modern institutional and regulatory environment
in which market actors would play a much stronger role; would remove
obstacles to structural adjustment and to the modernisation of processing and
distribution; would enable the agro-food sector to respond to evolving market
needs; would achieve food security more effectively and at lower cost; and
would ensure that publicly funded programmes do not exacerbate
environmental damage and climate change, or add to pressure on scarce
resources such as water. Available resources would instead be devoted to (i)
investments in innovation, climate change adaptation, resource conservation and

77
infrastructure for sustainable productivity growth; (ii) transitional (digressive)
direct support to farmers which could be integrated into the evolving DBT
system using the Aadhar system for disbursement; and
(iii) disaster programmes with triggers and payment conditions defined in
advance and capable of rapid deployment.
The Government of India’s own assessment concurs with many of the
conclusions that have emerged from this report. In particular there is keen
awareness of: the need to reform and modernise market regulations; to improve
the prospects of smallholders including through adjustment out of the sector for
some; improve the effectiveness of food security measures; and to deal with
looming water and environmental degradation issues. Many policy initiatives
are already underway or in the pipeline and are mentioned throughout this study
which endorses many of them and simply suggests that they should be
continued or reinforced. Additional recommendations focus on shifting scarce
budgetary resources to investments that will increase resilience and
sustainability, while allowing better functioning markets to determine farmers’
remuneration to a much greater degree. Finally, a less restrictive and more
stable international trade regime covering both imports and exports is
suggested, without which – in a world of global value chains – the potential of
the sector to contribute to growth and jobs will not be fully realised.

78
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