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IRJMST Vol 6 Issue 12 [Year 2015] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

Agriculture: Under the Five year Plans and Road Ahead

Dr. Babita Jaiswal


Assistant Professor,Govt. Girls Degree College, Gurgaon

Ms.Chitra Sharma
Assistant Professor,Govt. Girls Degree College, Gurgaon
Abstract

India has made a tremendous growth on the agriculture after independence. This was a result of
numerousprograms implemented to increase the productivity during five year plans. Agriculture is
the true heartbeat of our economy as it contributes into the major part ofIndia‘s GDP.Productivity
increased after independence but has been declining over last few years.The decline in productivity
can be attributed to number of factors such as illiteracy, inadequate marketing of agricultural
products, insufficient finance and wrong methods of cultivation. In addition to above mentioned
reasons, the average size of the farms is very small which in turn has resulted in low productivity.
Also the sector has not adopted modern technology and agricultural practices which has restricted the
productivity. Insufficient irrigation facilities has made farmers dependent on rainfall, which is
however very unpredictable. The Indian government must take serious steps to boost the agricultural
sector as over 70% of rural households depend on agriculture as their principal means of livelihood.
Agriculture alongwith fisheries and forestry is one of the largest contributor to GDP.In this study we
have made an effort to highlight the performance of agriculture during five year plans and also
projects undertaken to increase the productivity. We have also discussed the main problems
encountered to achieve the planned target and at last we are trying to have a focus on the current
steps undertaken under 12th five year plan. Finally some measures to improve the productivity have
been suggested.

Introduction:

Agriculture is the predominant segment of the Indian economy, which acts as decisive role in
development and sustainability of over 70% of Indian population. Since independence, India has
made immense progress towards achieving food security. Its population has tripled, but food-grain
production has more than quadrupled; there has thus been a substantial increase in available food-
grain per capita. Agriculture Growth Rate in India GDP had been growing earlier but in the last few
years it is constantly declining. Still, the Growth Rate of Agriculture in India GDP in the share of the
country's GDP remains the biggest economic sector in the country. Agricultural product is the 4th
largest exported principal commodity with a share of 10 per cent of total exports of the country.
Agriculture Growth Rate in India GDP in spite of its decline in the share of the country's GDP plays
a very important role in the all-round economic and social development of the country. The Growth
Rate of the Agriculture Sector in India GDP grew after independence AND the government of India
placed special emphasis on the sector in its five-year plans. Further the Green revolution took place

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in India and this gave a major boost to the agricultural sector for irrigation facilities, provision of
agriculture subsidies and credits, and improved technology

Salient Features of Agriculture:

There are certain salient features of agriculture in India. Some of these are:
Subsistence Agriculture: In India, usually the farmers, along with their family members, grow crops
in their small plot of land. The crops yield in this practice are mainly consumed by the farmer and his
family with very little surplus left for sale in the market. This type of agriculture has been the most
common practice in the country for over 700 years and still prevails in many parts of India.
Pressure of Population on Agriculture: The population in India is increasing at a high rate and this
puts pressure on the agriculture sector. Agriculture has to provide food and employment to large
sections of the society. This means that there is a requirement of additional land for agriculture but
on the contrary the rapid growth in urbanization has converted the agricultural land into non-
agricultural use.
Mechanisation of Farming: In India, Green Revolution began in the sixties. Even after four
decades,complete mechanization has not yet been achieved.
Dependency upon Monsoon: Agriculture in India mainly depends upon monsoon, which is
unreliable, uncertain and irregular. Even though, since Independence, there has been a rapid
expansion in the irrigation facilities, still about two-thirds of the cropped area is dependent upon
monsoons.

Importance of Animals: In India, animals play an important role in agricultural activities such as
irrigation, ploughing, threshing and transportation of agricultural products. The full-fledged
mechanization of agriculture in India is a distant dream and active participation of animals in
agricultural activities will continue in future.

Variety of Crops: There is diversity in climate, topography and soil in India, hence, a wide range of
crops are grown in the country. India experiences both tropical and temperate climate and therefore
support the cultivation of crops suitable for both these climates. Throughout the world, there are only
few countries which have similar variety as compared to India.
Predominance of Food Crops: It is of utmost priority for the farmers to produce and provide food
crops to the people of India. Farming is practiced in almost every part of the country and about two-
thirds of the total land is being used for agricultural purposes in India.
Seasonal Patterns: There are three distinct agricultural or cropping seasons in India - kharif, rabi
and zaid. Some specific crops are only grown during a particular season, for instance, rice is a kharif
crop and wheat is rabi crop.

The following points highlight the eleven plans which helped in the progress of Indian
agriculture.

1. The First Plan (1951-56):

Immediately after independence, the country was faced with two major problems – food crisis, and
shortage of industrial raw materials such as raw jute and raw cotton.

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The major objectives of the First Plan in the field of agriculture were to correct the imbalances
caused by partition in the supply of food grains and commercial crops and improve infrastructural
facilities.

Agriculture, including irrigation and power was therefore accorded the highest priority. That is why
the First Plan assigned the maximum priority to the agricultural sector. This is clear from the fact that
31 p.c. of the total plan outlay was devoted to agriculture. But the First Plan set very modest targets
for the production of most crops.

The results achieved during the First Plan were quite satisfactory for two-fold reason—favorable
weather conditions and effective implementation of plan programs. Consequently, the target for food
grains production was exceeded. As against the target of 62 million tons, actual production of food
grains was nearly 66 million tons.Efforts to improve agriculture were spread throughout the country
and to involve every village in it through the Community Development Programme. A new land
policy was also adopted with a view to eliminating exploitation and extending security of tenure.

2. The Second Plan (1956-61):

However, there was a sudden reversal of strategy during the Second Plan.

The emphasis shifted from agriculture to industry for three different reasons:

(a) The smooth performance of agriculture during the First Plan period,

(b) The possibility of financing economic development through foreign aid, particularly food aid,
and

(c) The consideration that heavy industry was the leading sector of economic development.

The Government adopted the strategy of developing heavy industries following the then Soviet
model of industrialization. Consequently, the outlay on agriculture was reduced to 20 p.c from 31
p.c. made in the First Plan.

But, as far as production of major crops was concerned, quite ambitious targets were set. However,
due to the adoption of a wrong strategy, miscalculation and poor implementation of most of the
programs, the performance of the agriculture was quite dismal.

3. The Third Plan (1961-66):

The planners subsequently realized that the strategy of development adopted during the Second Plan
was wrong. It was felt that, in an agrarian economy, any setback on the agricultural front would spell
disaster for the whole economy.

Thus, during the Third Plan the Government made greater allocation for agriculture i.e., Rs 1,745
crore compared to Rs 950 crore in the Second Plan. However, the percentage share of agriculture in
total plan outlay remained unchanged at 20.

The main objectives of the Plan were to achieve self-sufficiency in food grains and increase in
agricultural production to meet the requirements of industry and export. A number of institutions
were set up to extend support to development activities in different fields.
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The performance of the Plan was more or less satisfactory—at least in the first four years. A record
output of 89 million tons had been achieved in case of food grains. However, the performance in the
last year was dismal due to the disastrous drought of 1965-66 and two wars (one with China in 1962
and another with Pakistan in 1965).

However, in 1966-67, a new strategy of agricultural development was adopted which focused on the
following programs-

(a) High Yielding Varieties Program (HYVP), and

(b) The Multiple Cropping Program — both based on the exotic, high-yielding, short duration crop
varieties.

The other elements of the strategy were the new concepts of irrigation and water management,
adaptive research and price guarantee to producers. However, due to failure on the agricultural front,
the whole planning process received a severe jolt and formulation of the Fourth Plan was delayed by
no less than three years.

4. The Fourth Plan (1969-74):

While most of the programm adopted under the new strategy were continued in the Fourth Plan, a
new orientation was imparted to agricultural policy. In order to achieve growth with social justice,
the agricultural policy laid stress on helping the weaker and vulnerable sections of the population and
backward areas.

High priority was accorded to technology as a major input. Besides attainment of self-sufficiency,
the Plan envisaged building up of a sizable buffer stock and stoppage of concessional imports of food
grains.

Modest targets were fixed for agricultural production and realistic allocations were made for
agriculture and irrigation. The Plan started with a happy note. The production of food grains reached
an all-time high of 108 million tons in 1970-71. However, poor monsoons in the next two years led
to crop failure and this created the problem of price inflation.

5. The Fifth Plan (1974-79):

Renewed emphasis was placed on agriculture in the Fifth Plan. The growth target in the agricultural
and allied sectors had been fixed at 3.94 p.c. Necessary allocation was made for important programs
like minor irrigation, high-yielding varieties of seed and distribution of fertilizers.

As in the Fourth Plan, outlay on agriculture was 21 p.c. of total Fifth Plan outlay. Ambitious targets
were fixed for the agricultural sector. However, the performance was not satisfactory in the first year
due to fall in production.

Due to setback on the agricultural front, the rate of growth of the economy (as measured by per
capita income) reached a vanishing point. The performance of the agricultural sector, however,
started improving from the second year as output reached a new record. In spite of this, the Fifth Plan
was cut short by one year by the erstwhile ruling party, the Janata Government.

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6. The Sixth Plan (1980-85):

The agricultural growth pattern during the Sixth Plan period took into account the immediate as well
as long-term needs of agricultural commodities—both for domestic consumption and for export. The
highest priority was assigned to bridging the gap prevailing between actual and potential farm yields
even at current levels of technology through the removal of existing constraints. Agriculture and
allied activities received adequate attention through the development of appropriate packages of
technology, services and public policies.

7. The Seventh Plan (1985-90):

Total outlay on agriculture, irrigation and rural development was Rs. 48,100 crore or 22 p.c. of the
total plan outlay. The Seventh Plan aimed at an agricultural growth rate of 4 p.c. p.a. and the target
for food grains output was kept at 3.7 p.c. p.a.

The major programs adopted in the Seventh Plan were:

(i) Special rice production programs in the Eastern region,


(ii) National Oilseeds Development Projects,
(iii) National Watershed Development Program for rain-fed agriculture, and
(iv) Social forestry.

This sector witnessed a growth rate of 3.2 p.c. p.a. During the Seventh Plan, the area under irrigation
was proposed to be increased at the rate of 2.5 million hectares p.a.

8. The Eighth Plan (1992-97):

The Eighth Plan gave priority to the ―growth and diversification of agriculture to achieve self-
sufficiency in food and generate a surplus for exports.‖ Investment in agriculture, irrigation and
allied sectors showed a sharp rise over the previous plans.

The share of public and private sectors investments in the Eighth Plan in agriculture and rural
development stood at 22 p.c. of the total investment as compared to 11.23 p.c. in the Seventh Plan.
The Eighth Plan aimed at achieving an agricultural growth rate of 4 p.c. during the Plan period. A
major effort was given during the Eighth Plan period to increase the output of rice, pulses and
oilseeds.

During the plan period, there has been a shortfall in investment in all the sectors, including
agriculture where, actual investment was just 59 p.c. of planned investment. Despite this, agriculture
recorded a growth rate of 4.7 p.c. At the end year of that Plan, food grains output, however, touched
a record level of 199.3 million tons against the target of 210 million tons.

9. The Ninth Plan (1997-2002):

The thrust of the Ninth Plan was to achieve agriculture-led growth. For the first time since 1960s, the
Planning Commission had focused on agriculture, instead of industry, in the Ninth Plan. It was
targeted to grow at 4.5 p.c. p.a. during the Ninth Plan period. Actual production of food grains fell
far short of the targeted production. Actual production was 212 million—a shortfall of 18 million
tons. In case of production of oilseeds, performance was disappointing. Anyway, food crisis did not
emerge because of building up of huge buffer stock of food grains.
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To achieve this growth rate, the Planning Commission recommended a four-pronged strategy
including a viable minimum support price and input subsidy policy. The public sector had been
allocated Rs. 8,75,000crore. Agriculture got a whopping 19.4 p.c. of the total on outlay.

The actual growth rate in agriculture and allied activities fell short even of the revised targets of 3.9
p.c. Realised growth rate for 1997-2002 came to 2.1 p.c. The reform process had failed to stimulate
our agricultural sector.

10. The Tenth Plan (2002-07):

The Ninth Plan experienced a slowdown in the growth potential of the economy that needed to be
reversed in the Tenth Plan. As for as the sectoral allocation of public resources is concerned,
agriculture did not receive high priority in the Tenth Plan.

Tenth Plan allocation for agriculture, irrigation, etc., amounted to Rs 3,05,055crore— an increase of
51.4 p.c. over the Ninth Plan. It aimed at pushing up the growth rate of agriculture 2.1 p.c. on the
average attained during the Ninth Plan to 4 p.c. during the entire Plan period of the Tenth Plan.

Tenth Plan recorded a growth rate of 2.4 p.c. (because of poor monsoon. Deficient rainfall in 2002,
2004 and 2006 has led to (i) poor agricultural growth, (ii) reduction in the share of agriculture in
GDP from 23.8 p.c. in 2002-03 to 20.5 p.c. in 2006-07.

11. The Eleventh Plan (2007-12) and Second Green Revolution:

Against the backdrop of miserable performance of Indian agriculture during the Tenth Plan, a higher
annual growth rate of 4 p.c. p.a. to achieve the targeted GDP growth rate of 10 p.c. over this plan
period was urgently needed in the current plan.

The 11th Five Year Plan (2007–12) emphasized ‗Inclusive growth‘ to achieve a target growth of 4
per cent per annum in GDP from agriculture and allied services. Globally, studies indicate that a
higher GDP in agriculture is more effective in alleviating poverty in comparison with higher GDP in
other sectors.

To achieve ‗Inclusive growth‘, the 11th plan aimed at the following:

 Improving accessibility of technology to farmers to increase production and ensure optimum


use of natural resources
 Attracting higher public investments and ensuring efficacy of such investments
 Promoting diversification for higher value crops and livestock
 Addressing issues pertaining to food security
 Decentralising decision making to come up with customised solutions to specific local
problems and to improve the accessibility of land, credit, skills and scale to the poor

The central government has sponsored a number of schemes intended to increase agricultural
production and overall income of farmers. Some of these programmes are National Food Security
Mission (NFSM)to improve the country‘s overall crop production especially that of rice, wheat and
pulses, RashtriyaKrishiVikasYojana (RKVY) to encourage states to increase public investment in
agriculture and allied services, Macro Management of Agriculture (MMA)to help states to
improve agricultural productivity, Integrated Scheme of Oilseeds, Pulses, Oil Palm, and Maize

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(ISOPOM) targeted at small and marginal farmers who raise oilseeds under rain fed conditions in
the arid and semi-arid areas of the country and National Mission for Sustainable Agriculture
(NMSA) to ensure food security as well as protect various resources such as land and water and
biodiversity and genetic resources and also aimed at enabling the Indian agriculture to face
challenges and threats such as climate change.

Growth Rate of Agriculture and Allied Sectors

All figures based on 2004-05 prices (In percentage)

Plan Share of Agriculture Growth Rate of Growth Rate of Total


In the Economy Agriculture and economy
Allied Sectors

Ninth five year plan 23.4 2.5 5.7

Tenth 19.0 2.4 7.6

Eleventh plan(2007-08 to 2011-12)

2007-08 16.8 5.8 9.3

2008-09 15.8 0.1 6.7

2009-10 14.7 1.0 8.4

2010-11 14.5 7.0 8.4

2011-12 14.0 2.8 6.5

Eleventh plan 15.2 3.3 7.9


average

Source: Central Statistical Office, New Delhi Press Release Dated 7th Feb 2013

The average of annual growth rate of GDP in agriculture and allied sectors during the 11th fiveyear
plan was recorded at 3.3%. This was slightly lower than the targeted growth rate of 4 per cent
predicted in the 11th Five Year Plan. A lower growth could be attributed to drought conditions
experienced in FY10 and FY11. Nonetheless, the sector witnessed slight improvement in the 11th
Five Year Plan compared with the last two five year plans.

Problems Faced by the Agriculture Sector


Even after 11 five year plans, there are certain problems and challenges faced by the agriculture
sector in India. Most of these are long-standing and some are emerging due to the ongoing
agricultural practices. Some such problems are:

 Stagnation in Production of Major Crops: The production of some of the major crops in India
like wheat has become stagnant for some time now. It is worrisome for the policy makers and

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planners of the country as there is a huge gap between the demand and supply of growing
population and production.

 Soil Exhaustion: Although, Green Revolution has brought a positive impact in India, but on
the other hand it has also resulted in negative impact. One of the biggest impacts is soil
exhaustion which means depletion of nutrients in the soil due to farming of same crops again
and again. Soil exhaustion generally takes place in rain forest areas.

 Decrease in Fresh Ground Water: Another negative impact of Green Revolution is the
decreasing amount of ground water. Green Revolution is successful in some areas due to the
use of chemical fertilizers and irrigation. In dry regions agricultural practices are done with
the help of irrigation activities which is carried out by ground water usage. This has led to an
alarming situation in context of ground water situation. The continuous practice of such
farming activities may result in famine-like situation.

 Costly Farm Inputs: The past few years have witnessed an increase in the prices of farm
inputs such as pesticides, insecticides, fertilizers, farm labour and others. The increasing cost
puts the low and medium land-holding farmers at a disadvantage.

 Agricultural Marketing: In rural India, agricultural marketing is in a bad shape. The farmers
depend on local traders and middlemen to sell their products at very low prices. Sometimes,
under socio-economic situations they are forced to sell their produce at low rates. Lack of
organised market structure, middlemen and traders dominate the market and they also take
away a large share from the sale of farm produce.

 Lack of Storage Facilities: There is a lack of adequate food storage facilities available in the
rural areas of the country. Due to this, the farmers are not left with any other option but to sell
their products instantly after harvesting, and that too at prices which are below the prevailing
market rates. Better storage facilities are essential for the benefit of the farmers as well as the
consumer.

 Effect of Global Climate Change: In recent years, there has been a global climate change
which has had a great impact on the Indian agriculture. The change in the climatic conditions
has resulted in an increase of about 2-3°C which affects the agricultural practices.

The 12th Plan

The Eleventh Plan had sought to reverse the deceleration of agricultural growth which occurred in
the Ninth Plan and continued into the Tenth Plan. It has had some success in food grain production
that has touched a new peak of 241 million tons in 2010-11 and growth in agriculture in the Eleventh
Plan is likely to average 3.3 per cent per year as compared to 2.2 per cent in the Tenth Plan.
However, we need to redouble our efforts to ensure that 4.0 per cent average growth, if not more is
achieved in the Twelfth Plan period.

The Twelfth Plan considers all issues, as well as the weaknesses of existing schemes as brought out
in the Mid-Term Appraisal of the Eleventh Plan. Its thrust is to move forward with the architecture of
RKVY and, in particular, focus more on the issues of sustainable development. Significant points of
interventions have been are identified below:

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Water Management

The first and perhaps the most important component is vastly superior water management. These
include a wide and diverse range of problems, objectives and means of resolution,

o Steps to greatly improve governance in water management through Water User Associations such
as PaniPanchayats and similar PRI-based institutions.
o A focus on Command Area Development and the rehabilitation and physical modernisation of
existing major irrigation systems.
o Extensive rainwater harvesting assisted by space-based maps with active ground-truthing and
convergence with other development schemes.
o Comprehensive aquifer mapping and extensive ground water recharge.
o Move towards sprinkler and drip irrigation and away from flood irrigation
o Assuring irrigation to much more land far beyond the present 42.0 per cent of arable land
o Strengthening of drinking water resources
o Integration of these activities with existing surface reservoir based canal irrigation.

Soil Nutrient Management

The second major input that is needed is the preservation of soil fertility and nutrition management.
The way forward is to rejuvenate soil and restore soil health through addition of soil organic matter
in bulk quantities and also micro-nutrients. Balanced nutrient management will gradually ameliorate
the effects of imbalanced/excessive use of chemical fertilizers. Support for soil amelioration and
ecological/ organic fertilization is now scattered under various schemes and will require a clearer
focus, along with much better assessment of soil health and nutrient needs at the farm level.

Efficiency in Use of Chemical Fertilizers

Since agriculture will continue to require the use of chemical fertilizers, and their intensification in
many areas, policy must encourage application of customized or appropriate mixtures relevant to the
soil conditions and to specific crops. India is still one of the lowest fertilizer consuming countries
and there is a need to encourage application of customized mixtures relevant to our soil and promote
composite use of organic and chemical fertilizers.

Application of customized mixtures and slow release forms of fertilizer, combined with micro-
biological cultures, will have the threefold effect of
(a) improving the efficiency of fertilizer use and therefore, of the large subsidies involved,
(b) preventing contamination of ground water and
(c) improving the nutritional status of the soil by working in a complementary manner with the
natural eco-system of the soil.

New Technologies for the Farm Sector

Technology is the main prime mover of productivity in agriculture where natural resources are fixed.
Studies have shown that at least one-third of the future growth in productivity should come through
innovations in crop technologies. Significant breakthroughs are required to improve production
technologies of these predominantly rainfed crop groups. Moreover, since climate change will
require coping with increased stress, it is necessary to remain abreast with latest advances in bio-
technology and make full use of marker-assisted breeding methods.

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Investment in agricultural research and development to bring out new varieties and breeds for a wide
range of crops and animal resources is a priority in the farm sector. India‘s expenditure on
agricultural R&D and education is currently about 0.6 per cent of the GDP from agriculture and
allied activities and this definitely needs to be raised at least to 1.0 per cent.

Seed Systems

Seeds are a critical input for long-term sustained growth of agriculture. In India, more than four-
fifths of farmers rely on farm-saved seeds leading to a low seed replacement rate. Concerted efforts
are essential in ensuring timely availability of seeds as well as increasing the Seed Replacement Rate
(SRR). The National Mission on Seeds has been formulated with a view to upgrade the quality of
farm saved seeds and also to enhance SRR.

Promotion of IPM/NPM Practices and SRI

Successful adoption of NPM (Non-Pesticidal Management) and SRI (System of Rice Intensification)
in several rainfed and irrigated cropping systems in the past decade, has led to increased policy and
research attention to these systems. While some state governments, Andhra Pradesh, Tamil Nadu,
Bihar and Orissa have been particularly attentive to increased adoption of these productivity
enhancing, cost-effective and eco-friendly production practices, a nation-wide support for such
knowledge-intensive (as opposed to input-intensive) alternatives that are ideal for rainfed areas, is
still missing.

Land and Tenancy Reforms

Legislation regarding ceiling on land ownership has not had the impact to the extent that was
envisaged because redistribution of land declared surplus is being held-up on account of litigation.
There are numerous cases that have been reported, where the title deeds (pattas) are not in the
possession of the beneficiaries and there have been many benami transactions which together serve
to defeat the purpose of the legislation. Issues of land rights are also a major problem in the case of
land on which tribal people have had customary use. In the Twelfth Plan, effort are being made to
deal constructively and effectively with these outstanding matters.

Livestock and Fisheries

During the Twelfth Plan, the dairy sector will be strengthened under the proposed National Dairy
Plan. This should supplement efforts of Animal Husbandry Departments in areas of progeny tested
semen for artificial insemination and expansion of fodder availability through innovative
means.Similarly, in the area of fishing, there is need to clearly define the role of Fishery Departments
and the National Fishery Development Board, with the former concentrating more on policy and
fishers‘ welfare while development activities are increasingly taken over by the latter.

Linking Small Producers with Markets

Small and marginal farmers now constitute over 80.0 per cent of farming households in India. They
have only very small quantities of marketable surplus. Moreover, their staying power is low because
of their extreme poverty. As a result, these farmers sell off most of their produce in the local markets
at very low prices immediately after the harvest. Thus, farmers suffer even in years of a good
harvest, since they are not able to get good price realization. The obvious solution is for these
farmers to aggregate their produce and reach bigger markets where they can get a better price for

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their produce. This was the original idea behind Marketing Co-operatives but these have delivered
effectively only in a few cases.

Alternative models based on the idea of Producers‘ Companies and Commodity Interest Groups are
now beginning to take off. Moreover, with the growth in the Self-Help Group (SHG) movement and
development of SHG Federations across the country under the NRLM, options for crop produce
aggregation and collective marketing are widening. The institutional structures, including a
regulator, are now in place and it is expected that the Twelfth Plan period will see substantial
volumes flowing through the system.

Crop Insurance

Small and marginal farmers, particularly rainfed farmers face partial or total crop losses due to risks
associated with farming. Crop insurance has come up as an important tool for risk mitigation for
small and marginal farmer households in particular.

The principal crop insurance scheme is the National Agricultural Insurance Scheme (NAIS) which
presently encompasses subsidy on 10.0 per cent of the premium to small and marginal farmers, with
the expense on the subsidy being equally shared between Central and State Governments. The
scheme is demand driven and although a large number of farmers (11.4 million in kharif 2010)
availed of this programs (with the total sum insured being Rs. 25,500 crore), the fact is that not
enough farmers are availing of this scheme. The reasons are believed to be a combination of lower
subsidy, delayed claim settlement, lack of awareness and operational issues. In response to this, a
modified NAIS has been implemented on pilot basis in 50 districts covering most States. This has a
slightly different design, including higher subsidy and accelerated settlement. The MNAIS scheme is
yet to be rolled out in the rest of the country.

Expected Output

The combined outcome of the above listed initiatives should result in significant increase in farmers‘
incomes and in food production both in terms of quantity, quality and range. In the backdrop of the
price trends in the international food markets, it would be prudent to plan not only for self-
sufficiency in basic food production, but also to maintain a surplus. In the case of fruits and
vegetables, milk eggs, meat and fish and also of pulses, there is a need to ensure that output grows at
a rate significantly faster than that of cereals so as to service the expanded demand in these areas.

Overall, during the Twelfth Plan period annual output growth of about 1.8 to 2 per cent is envisaged
for cereals with rice output likely to grow by around 2 per cent. The output growth rate for pulses
will have to be stepped up. Thus, the overall food grain output is expected to be around 2.0 per cent
or slightly higher. Horticulture and animal husbandry products are expected to register output growth
of 4.5 to 6.0 per cent, while that of oilseeds are expected to exceed 3.0 per cent. Overall, that would
give an output growth of between 4.0 and 4.5 per cent in the sector.

The expanded output of the rural sector is expected to impact rural livelihoods in the following way.
 Higher productivity in farming
 Higher value for farming especially in horticulture, dairying and animal husbandry
 Expansion of scope for supportive services which include rental for farm equipment and fees
for providing mechanized services such as tilling, sowing and harvesting.
 Major expansion of post-harvest activities, including storage and processing

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 Expansion of services that relate to equipment maintenance and transportation


 Encouraging the establishment of small and medium sized agro-based industries
 Expanding the scope for non-agro based small and medium industries wherever it may be
feasible.

At another level, the output should be reflected in greatly improved health and nutritional outcome.
This would not only be a result of higher rural incomes, but also the availability of more locally
produced nutrition, as well as intensive monitoring and effective intervention through government
programs.

Conclusion:

As the twelfth plan is still underway actual output and results needs to be annually assessed so as to
compare plans against performance. Government needs to achieve small milestones to finally
succeed in its goal of 4% growth for agriculture.

Following points needs to be considered


 enhanced institutional credit to farmers;
 promotion of scientific warehousing infrastructure including cold storages and cold chains in
the country for increasing shelf life of agricultural produce;
 Improved access to irrigation
 provision of Price Stabilization Fund to mitigate price volatility in agricultural produce;
 Provide institutional finance to joint farming groups; development of indigenous cattle breeds
and promoting inland fisheries and other non-farm activities to supplement the income of
farmers.
 Adoption of a farming systems approach with livestock and commons as an integral
component of the farm;
 Generation of biomass for bulk addition of organic matter in the soil to maintain proper soil
health. We should educate the farmers not to burn standing crop residue but to plough it into
the soil;
 Recycling of farm and household waste through use of intensive nutrient recycling methods
such as composting, including the use of vermiculture;
 Producing and encouraging use of bio-fertilizers at regional and local levels, along with
adoption of bio-dynamic farming methods;
 Crop rotations to enrich soil (e.g. to include pulses and leguminous crops). Multiple cropping
which enriches soil should be encouraged instead of mono-cropping;
 Pooling existing soil testing data into a System of Soil Nutrition Management (SSNM),
which will enable better-informed soil nutrition management and quality extension work; and
 Integration of the activities of Indian Council of Agricultural Research (ICAR) institutions,
State Governments, fertilizer and seed companies and other agencies to generate synergy

Also the public-private partnership model could be just the game-changer India‘s agricultural sector
needs. By drawing on the collective power of all agricultural stakeholders, PPPs can transform the
sector at multiple levels. With the government providing and co-financing the back-end of the value
chain, and the private sector and farmer contributions doing the rest, the agricultural sector could
remain a primary engine of rural growth and poverty reduction in India.

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PPP‘s could help bring cutting-edge technologies and approaches to India‘s agricultural sector. We
need PPP‘s focused on getting farmers access to vital information, methodologies and the latest
technology to help them in areas such as crop rotation, weather patterns, fertilizer use and going
organic – all at the click of a button or a simple SMS on their mobile phones.

In the same way, PPP projects, when targeted at helping farmers connect with their marketplaces and
financial institutions for micro-funding, can usher in massive alterations in the rural economy.

A country where farmer suicides are common, PPPs can actually save lives. PPPs that help the
agricultural sector deal with weather shocks, and allow farmers to minimize risk through insurance,
can be a crucial helping hand.

References:

Central Statistical Office, New Delhi Press Release Dated 7th Feb 2013
Planning Commission, Government of India, Economic sectors volume 2
Planning Commission, Government of India, 12th five year plan
Planning Commission, Government of India report on five year plan
Indian agriculture under five year plans, preservearticles.com
www.idc-online.com/agricultural_development_ploicies_during_five_year_plans

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