PremrajChavanAGRI

Agricultural economics

PremrajChavanAGRI
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GS 4 – AGRI ECONOMICS with …

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Syllabus

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Syllabus

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Syllabus

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Syllabus

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OLD SYLLABUS

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Question analysis
No year No. of
questions
1 2012 16
2 2013 20
3 2014 19
4 2015 23
5 2016 18
6 2017 21
7 2018 21
8 2019 19
total average 20+ que/
year
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2012

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2013

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2014

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2015

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2016

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2017

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2018

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2019

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GS 4 - 2.2 Indian Agrilculture & rural

development

• 2.2.1 – role of agriculture in economic

development

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AGRICULTURE
• It is India’s largest open and unorganised
sector on which income tax is not
charged..(can be charged as per state list sub
46)
• Agriculture in India is considered as a primary
occupation
• Indian agriculture is largely a subsistent type
of agriculture

PremrajChavanAGRI
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Agril. & allied sectors

• Agriculture
• Irrigation
• Horticulture
• Floriculture

• Livestock
• Dairy
• Fishery
• Forestry

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Agriculture contributing……..
No Agril. sector Earlier share Recent share
1 Share in GDP 51.9 (1950-51) 16.1 (2018-19)
2 Farmers in total working 69.7 (1951) 54.6 (2011
population census)
48.9 (NSSO
2011)
3 Per capita agril land 0.48 ha (1950- 0.12ha
availability 51)
4 Share in capital 17.7 (1950-51) 15.3 (2017-18)
generation
5 Share in export 44.2 (1960-61) 11.1(2018-19)
PremrajChavanAGRI
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Analysis
• The share of agril. And allied sectors in GDP is
declining…………
• The share of cultivators is decreasing and that
of peasants(agril. workers) is increasing……….
• The per capita land availability is decreasing at
higher rate
• The share of service and industries sector in
GDP is increasing day by day and that of agril.
Is continously decreasing

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Regional disparities in agril.growth

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Reasons for regional disparity

• First green revolution
• Irrigation facilities
• Policy making
• Govt. role and support
• Climatological factors
• Social factors

PremrajChavanAGRI
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2.2.2. Types of farming

• Contract farming
• Precision farming
• Corporate farming
• Organic farming

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Contract farming

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CONTRACT FARMING
STATE CONTRACT CROPS COMPANY
PUNJAB Basmati rice Satnam overseas,
amira food india ltd.
PUNJAB Potato, tomato, chilli Pepsico India ltd
PUNJAB Milk Nesley India ltd.
TAMILNADU Cotton Apache cotton
TAMILNADU Maize, rice Bhuvi care ltd.
MAHARASHTRA Soybean Tine oils ltd.
MADHYA RADESH Barley, soybean, United beverage ltd.
wheat
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Organic farming
• It includes cultivation of plants
without the use of any artificial or
synthetic chemical input
(fertilizers, pesticides, antibiotics,
food additives etc.), GM food,
irradiation and bio solids
• It relies on ecological processes ,
biodiversity and biological cycles
adapted to local conditions, rather
than the use of synthetic inputs
with adverse effects
• Its classification covers farming
systems like pure organic farming &
integrated green revolution
farming

PremrajChavanAGRI PremrajChavanAGRI
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Organic farming
• It combines the traditions,
innovations for the benefits
of the people and the
environment
• It works at grass root level
preserving the reproductive
& regenerative capacity of
soil, good plant nutrition and
sound soil management.
• Domestic forms of organic
agriculture includes
Panchakavya, Agni hotra ,
Reshi kheti, Jaivik krishi and
Vedic krishi.
• Sikkim is the first 100%
organic state of India (18 Jan
2016)
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2.2.3 Agricultural productivity

• Green revolution and technological change
• GM technology
• Agricultural pricing
• Agricultural marketing
• Agricultural credit
• NABARD

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First Green Revolution

• It is said to be started in 1965
• To face the problem of food scar
cities India had imported a large
quantity of 18000 tons Mexican
dwarf wheat (Lermarojo 64 A and
Sonora 64) varieties
• India become self sufficient in
food production in 1980’s
• with the key efforts of ICAR in
first green revolution in the fields
of research and technological
development, the foodgrain
production in India has increased
5 times between 1951-2014
• It focused on
a) High yielding varieties
b) Use of chemical fertilizers
c) Irrigations
d) Chemical pesticides
e) Storage, Marketing &
Distribution
f) To reduce in decrease of
agricultural production and
productivity
g) To meet need of food grain of
growing population
h) To meet growing need of raw
material needed for
industrialisation

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Varieties selected for first green

revolution
• Wheat • Rice

• 1) sonoro 64 • ADT 27
• 2) lerma rojo 64 A • Mahsuri
• 3) lerma rojo 64 • IR-8
• 4)kalyan sona • IR-36
• 5) P.V. 18 • IR-72
• JAYA

PremrajChavanAGRI PremrajChavanAGRI
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HIGH YIELDING VARIETIES

PROGRAMME (1966)

• Motive was to develop high yielding varieties

of cereals such as
rice,wheat,jowar,bajra,maize.
• It has a major role in the success of first green
revolution
• It was confined only to above 5 major cereals.

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Second Green Revolution

• It is said to be started Focus on
after 2004
• Due to excessive use of a) Rainbow revolution
chemical fertilizers and b) Organic fertilizers
irrigation in 1st green
revolution the land has c) Food safety & security
tended to become d) GM crops
infertile
• It resulted into the e) Efficient irrigation
degradation of f) Green agriculture
environment and caused
harmful effects on human

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GM crops and technology

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2.2.5 livestock resource and their

productivity
• White revolution
• Fisheries
• Poultry
• Forestry
• Horticulture and floriculture
Development in India and maharashtra

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The dairy in India

• India is the largest producer of milk since 1997
• India ranks 1st in the world milk production
• The per capita availability of milk in India is higher
than that of the world
• The per capita availability of milk in India is 355
gm/day higher than that of the world which is
302 gm/day
• Top 3 milk producing states
• 1) UP 2) rajasthan 3) MP

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Livestock - India
• The livestock sector is one
of the important sector in
Indian economy as well as
in Indian Agriculture
• It contributes 4.11% to
India’s total GDP
• The total livestock
population of India was
recorded to be 535.78
millions in 20th livestock
census 2019
• It was 4.6 % increase in
livestock population than
previous census

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Livestock - India
• Around world about 20.5 million people
depend upon livestock for their livelihood
• It contributed 16% to the income of small
farm households as against an average of 14%
for all rural households
• Livestock provide livelihood to two-third of
rural community
• It provides employement to about 8.8% of
indian population

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LIVESTOCK
• States with highest no. of livestock
1) Uttar pradesh
2) Rajasthan
3) Madhya pradesh
** States with highest no. of poultry animals
1) Andhra pradesh
2) Tamilnadu
3) Maharashtra

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Livestock - India
• Livestock census is
undertaken at an interval
of 5 years in India
• India is maintaining
10.71% of the world’s
livestock
• India ranks 1st in milk
production in the world
with per capita
availability of milk 355 gm
• About 80% of milk
produced in the country
is in unorganized sector
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Livestock India
• India having largest livestock population in the world ,
contains 17% of the total livestock population
• compared to other countries , the share of livestock in
countries national income is less.
• India has the largest no, of cattle in the world
• Indian cow is called as tea-cup-cow because of its low
average yield of milk
• about 50 % of worlds total population of buffaloes is in
India
• buffaloes account for about 50% of milk production in
India

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20th livestock census

• Published by the ministry fisheries ,livestock
every five year since 1919
• It was carried during october 2018
• Online and digital methodology was first time
used during this census
• It was carried in 6.6 lakh villages and 89
thousand urban divisions
• It is carried out by central ministry for fisheries
, livestock & dairy
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20th livestock census

Animals 2019 2012 Increase %
(millions) (millions)
Cattles 192.49 190.90 0.83
Buffalo 109.85 108.70 1.00
Goats 148.88 135.17 10.10
Sheeps 74.26 65.06 14.10
Pigs 9.06 10.29 -12.03
Poultry 851.81 729.2 16.80
Total 535.78 512.6 4.60
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Livestock census – key points

• The livestock population has inceased by 4.6%
• The increase is highest in west bengal (23%) followed
by Telangana (22%)
• The cattle population is increased by 0.8% and
recorded highest in cross breed cattles
• The highest decrease in cows population is recorded in
Uttar Pradesh
• Cross breed cattles contributed 28% of India’s total
milk production
• The number of indigenous cattle breeds is decreased
by 6%

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Share of important species

No animals Share %
1 cattle 35.94
2 Goats 27.80
3 Buffaloes 20.45
4 Sheeps 13.78
5 Pigs 1.69
6 Others 0.23

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States with highest livestock

No State Population Increase %
(millions)
1 Uttar pradesh 67.8 -1.35
2 Rajasthan 56.8 -1.66
3 Madhya pradesh 40.6 11.81
4 West bengal 37.4 23.32
5 Bihar 36.5 10.67
7 Maharshtra 33 1.61

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States with highest cattle

No State Population Increase %
(millions)
1 West bengal 19 15.18
2 Uttar pradesh 18.8 -3.93
3 Madhya pradesh 18.7 -4.42
4 Bihar 15.3 25.18
5 maharshtra 13.9 -10.7

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Topper’s
No Category Leading state (in Maharashtr
nos.) a stands
(..th )
1 Poultry Tamilnadu 5
2 Cattles West bengal 5
3 Buffaloes Uttar pradesh 7
4 Sheeps Telangana 7
5 Goats Rajsthan 6
6 Piggery Assam -
7 Camel Rajsthan -
PremrajChavanAGRI PremrajChavanAGRI
8 Ponies (horses) Uttar pradesh 6
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Livestock – INDIA - MAHARSHTRA

NO CATEGORY INDIA’S MAHARSHTRA’S
RANK RANK
1 Total livestock 1 7
2 Poultry 7 5
3 Cattles 2 5
4 Buffaloes 1 7
5 Goats 2 6
6 sheeps 3 7
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Fishery – India
• Fish catch in India is of 2 • About 75% of marine
types – Marine and fish landings are on the
Island west coast and only
• India is 2nd largest 25% in the east coast.
producer of fish in • Important fish caught
world (5.5%) after China along the coast are
• It accounts for about shark, sardine, herring,
one per cent of the Mumbai duck, fly fish
total agricultural ribbon fish and
production in India. Mackerrel.

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Fishery – India
• Andhra pradesh is the • There are six major fishing
largest producer of fish in harbours and 38 minor
India and is the largest fishing harbours.
producer of inland fish (31%) • The major harbours are-
also. Cochin, Chennai.
• Kerala has about 85% of Vishakhapatnam, Roy Chowk,
India's total processing Paradip and Sasson dock.
facilities & processes the • The Central Institute of
largest amount of fish in the Fisheries, Nautical and
country. Engineering Training is at
Kochi.
• India exports about 8% of the
total fish production. • The Central Institute of
Coastal Engineering for
• Sri Lanka alone purchases
Fisheries is in the Bengaluru.
80% of fish & fish products.
• Sasson Dock in Mumbai isPremrajChavanAGRI
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Fish Production in India

Sr. State Marine Inland Total
No. Fishery Fishery (‘000 tons)
1 Andhra Pradesh 475.4 1503.17 1978.57

2 West Bengal 178.8 1436.46 1617.31

3 Gujarat 692 84 771

*** India 3502.07 6929.2 10431

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Marine fishery - India

No state Production % share in
(lakh Indias
tonnes) production
1 Tamilnadu 7.75 21

2 Gujrat 7.49 20

3 kerala 5.44 13.14

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Inland fishery - India

No State Production % share in
(lakh India’s
tonnes) production
1 Andhra pradesh 18.15 25.14
2 West bengal 14.55 20.17
3 Uttar pradesh 5.37 7.44

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Horticulture
• India is the 2nd largest producer of fruits and vegetables
• India leads the world in production of mango, banana,
sapota and acid lime and has recorded highest
productivity in grape
• Mango, citrus and banana rank first, second and third
respectively in area in India
• Mango covers about 39% of area and accounts for 23%
of total production in India
• Banana ranks first in fruits production followed by
Mango
• India is next only to China in area and production of
vegetables contributing 13% of world production

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Horticulture
• India occupies first rank, second rank, and third rank in the
production of cauliflower, onion & cabbage respectively
• Saffron mission has been launched in J & K to boost the
production of saffron with an allocation of Rs. 50 crore
during 2011-12
• National horticulture mission was started in 10th five year
plan during 2005-06 with centre state share of 85:15
• Mission crop integrated development of horticulture was
started by merging NHM & NBM in 2014-15
• national horticultural board (NHB) was set up by govt. of
India in the year 1984
• Maharashtra board of horticulture and medicinal plant was
establish in 2005
• Fruits and vegetables are called as protective foods

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Important varieties of some fruit

crops
• Mango =
keshar,ratna,hapus,Sindhupaya
ri,vanraj,suvarna, phule
abhiruchi (pickles)
• Banana = dwarf
Cavendish,basrai,robusta, lal
velci, safed velchi, shreemanti,
red banana
• Grapes = Thompson
seedless,sharad seedless,
ganesh, sonaka, manik
chaman, red globe
• Pomegranate = ganesh,
bhagwa,phule anardana,alandi
• Custard apple = balanagar,
mehaboobnagar, Washington,
phulr purandar
• Fig = poona fig, dinkar, phule
rajewadi
• Guava = sardar
• Chikku = kalipatti, cricketball
• coconut = banwali,west coast
tall, pratap
• Strawberry= sweet charley,
camroza, selva, chandler
• Papaya = Washington,pusa
nanha, pusa giant

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Horticulture-Maharashtra
Sr.No. Fruits Area (ha.) Production (Ton)
1 Banana Jalgaon Jalgaon
2 Mango Ratnagiri Jalana
3 Grapes Nashik Sangli
4 Pomegranate Solapur Nashik
5 Citrus Amravati Washim
6 Mosambi Jalana Jalana
7 Lemon Solapur Ahmednagar
8 Guava Nashik Ahmednagar
9 Papaya Solapur Washim
*** All fruits Nashik Jalgaon
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2.10 Importance of agriculture in

Indian economy
• Causes of low productivity, basic agril. Inputs,
farm size and productivity
• Contribution to national income and
employment

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• 2.10.1 - Causes of low

productivity, basic agril. Inputs,
farm size and productivity

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Importance of agriculture

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Govt. policies towards doubling

farmers income
• Concept of doubling farmers income
• National agriculture policy 2000
• National farmers policy 2007
• National urea policy 2015
• National biodiesel policy 2018
• National agroforestry policy 2014
• National agri export policy 2018

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It started when……..

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• Land holdings
• Land reforms
• land utilization

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Types of land holdings

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Land reforms

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Need of land reforms

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10TH AGRICULTURE CENSUS 2015-16

• Agril. Census in India is done after every five
years in INDIA
• Govt. of India declared new statistics for 10th
agriculture census of India in oct. 2018
• Base year = 1970-71
• Agril. Land holders in India increased from 13.8
crores in 2010-11 to 14.6 crores in 2015-16
• the increase in land holders is was reported
5.33%

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10TH AGRICULTURE CENSUS 2015-16

• The maximum increase in number of farmers
was reported in Madhya pradesh
(12.74%)during the period 2010-2015
followed by andhra pradesh & rajasthan
• The state of Goa reported highest decrease in
number of farmers (28.17%)
• First agril. Census = 1970-71
• Ninth agril. Cenus = 2010-11

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10TH AGRICULTURE CENSUS 2015-16

• States with highest no. of land holders=

NO. STATE NO. OF LAND

HOLDERS
(CRORES)
1 UTTAR PRADESH 2.38
2 BIHAR 1.64
3 MAHARSHTRA 1.47
4 MADHYA 1
PRADESH
5
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10TH AGRICULTURE CENSUS 2015-16

• NO. FARMERS ACCORDING TO SIZE OF LAND HOILDINGS =

NO. CATEGORY PERCENTAGE Cropped area

1 small & marginal farmers with 86.2% 47.3%

less than 2 ha land holdings
2 Small medium & medium 13.2% 43.6%
farmers with 2-10 ha
3 Large land holders more than 0.6% 9.1%
10 ha

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10TH AGRICULTURE CENSUS 2015-16

• States with highest no. of agriculture areas=
1) Rajasthan
2) Maharashtra
3) Uttar pradesh
4) Madhya pradesh
5) Karnataka

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WTO and agriculture agreements

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Different crop insurance schemes in

India
• Importance & advantages
• History
• PMFBY
• NAIS
• MNAIS
• RWBCIS
• PASHUDHAN BIMA YOJANA
• GMSABY (maharashtra)

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Role of ICAR

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Role of MCAER

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2.10.2

• Problem of rural
indebtedness and
agriculture credit

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2.10 - 2.1
• Need, importance and role of credit in
agriculture
• Classification of credit
• Sources and agencies of agricultural finance
• Commercial & cooperative banks
• NABARD, RRB
• Kisan credit card -KCC

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2.10.2- 2
• Agriculture pricing
• Components & factors of agricultural prices
• MSP for various crops
• CACP
• Govt. agencies helping to purchase
• Marketing & storage of agricultural
commodites
• NAFED, NCDC, FCI, TRIFED etc

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Agriculture price policy

• on the recommendations of
L.K. Zha comittee govt. of India
had established agriculture
price comission on 1st Jan.
1965
• The chairman of APC was Prof.
Dantwala
• In 1985 the name of APC was
changed to commission for
agricultural costs and prices
(CACP)
• Today Prof. Vijay Pol Sharma
is the chairman is CACP
• Prof. Suresh Pal, Mr. Kaiwalya
Pradhan &
Dr. Shailaja Sharma
• Currently CACP declares
minimum support prices for 23
crops (it includes 14 kharif
crops,7 rabi crops aprt from
sugarcane,jute & copra)
• Its main objective is to have a
balanced and inclusive price
structure for crops.

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How the 1.5 times formula works out

MSP (ref. the hindu , 6 july 2018)
• What is A2?
>> A2 covers all paid out costs directly incurred by
the farmer-in cash and kind- on
seeds,fertilizers,pesticides,hired labour,leased in
land,fuel,irrigation etc.

** what is A2+FL?
>> it includes A2 plus an imputed value of unpaid
family labour

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• ** what is C2?
• >> it is a more comprehensive cost that
factors in rentals & interest forgone on owned
land on fixed capital assets, on top A2+FL.
• SO, the final MSP recommendation is based
on the formula-
• MSP = 1.5 (A2+FL) OR
• MSP = 1.5 (C2)
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CONCEPTS
>>LEVY PRICE- it is the price at which govt.
himself purchases something in advance from
different institutions or factories..
e.g. sugar and rice mills
>>CENTRAL ISSUE PRICE - price at which
govt.supplies food grains through ration shops
>>MINIMUM EXPORT PRICE – it is that price
below which a commodity cannot be exported

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FRP
• The FRP is the minimum price that sugarcane
farmers are legally guaranteed to get from
sugar mills.
• The crop, which has a more than 10%
recovery rate will get an additional Rs. 2.75 /
quintal for every 0.1 percent increase in
recovery.

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Components of PM AASHA

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2.10.2 - 3
• Agriculture marketing
• Markets and market structure
• Types of risk in agriculture marketing
• Role og govt. institutions in agril. Marketing
• APMC, NAFED,NCDC, E-NAM etc.

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Agriculture marketing

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LOCAL MARKETS
• Shetkari BAZAR – maharshtra
• Apani mandi – punjab
• Kisan mandi – rajasthan
• Rythu bazar – andhra pradesh/ telangana
• Uzwar santhai –tamilnadu
• Krishak baza - odisha

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E- NAM

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Important institutions
• NAFED
• TRIFED
• APEDA
• FCI
• NCDC
• FAO

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NAFED
• NAFED = national agricultural co-operative
marketing federation of India ltd.
• Estd. = 2 october 1958
• Head quarter = new delhi
• It purchases = 1) pulses and oilseeds
2) Horticultural products
>>>> It is national level co-operative apex
institution which works for agricultural marketing

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TRIFED
• TRIFED = tribal co-operative marketing
development federation of India ltd.
• Estd. = 6 august 1987
• Main function is marketing of forest and
agricultural products of scheduled tribes
• Head quarter = new delhi
• It has 37 outlets named ‘TRIBES INDIA’ all over
the country.
• Subsidiary of FCI in puchasing wheat and rice

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APEDA
• APEDA = agricultural and procssed food products
development authority
• Estd. = 13 february 1986
• Head quarter = new delhi
• APEDA’s listed products include =
fruits, vegetables,meat,poultry, dairy products ,
bakery products,honey-sugar,coco-
chocolate,alcoholic and non-alcoholic
beverages,oilseeds,pulses,pickles,flowers

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FCI
• FCI= food corporation of India
• Estd. = 14 january 1965
• Head quarter = new delhi
• Objective for establishment was
purchase,storage,transport and marketing of
food grains through government route

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Food & agriculture organisation

• Established on 16th october 1945
• Head quarter – Rome (Italy)
• Motto – let there be bread
• Members – 194
• MD –Jose D’silva
• The organisation aims at providing food
security to everyone in the world

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AGRICULTURE IN FIVE YEAR PLANS

FYP PERIOD MODEL MAIN
FOCUS
first 1951-56 Herod domer Agriculture

third 1961-66 Mahalnobis- Agriculture

chakraborthy and heavy
industries
ninth 1997-2002 Rav- manmohan Agriculture
& rural
developmen
t

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AGRICULTURE IN FIVE YEAR PLANS

• 1st five year plan (1951-56)
• India had a contract with America under PL-
480 food for peace scheme.
• We imported wheat within this scheme.
• In october 1951 , the first fertilizer factory was
established at Dhanbad (Sindri) in Jharkhand.

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AGRICULTURE IN FIVE YEAR PLANS

• 2nd five year plan (1956-61)
• Second fertilizers factory was established at
Nangal , Punjab
• Third fertilizers factory was established at
Rurkela.

• 3rd five year plan (1961-66)

• Agril. price commission was established in Jan ,
1965
• FCI was established on 14th Jan , 1965

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AGRICULTURE IN FIVE YEAR PLANS

• 1966 -69

• The era of first green revolution in India under

the guidance of DR. M. S. Swaminathan
• The High Yielding Varieties Programme was
started in the year 1966

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AGRICULTURE IN FIVE YEAR PLANS

• 4th five year plan (1969-74)
• Operation flood in 1970 under the guidance of Dr.
Vergis Courian

• 6th five year plan (1980-85)

• Dairy development programme was started, 1983
• National seed programme , 1983
• NABARD was established on 12th july , 1982

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AGRICULTURE IN FIVE YEAR PLANS

• 11th five year plan (2007-12)
• Rashtriy krishi vikas yojana (RKVY) was started
, 2007
• National saffron mission , 2010
• North eastern green revolution , 2010
• Integrated pulses and oilseeds programme ,
2010

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AGRICULTURE IN SDG’s
• According to SDG India report and under the
SDG goals target no . 2 =

• India have set up a target of increasing the

per hectar production of rice , wheat and
millets from 2509 kg/ha to 5018 kg/ ha upto
2030.

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PremrajChavanAGRI
Thank You
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Courtsey- Abhijeet Rathod sir

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