Presentation to the

IPC Seminar Challenges facing the Doha Development Round Trade Negotiations On Agriculture

By MR. DEVI DAYAL Former Secretary Deptt of Banking ,Ministry of Finance Government of India.

PART I Agriculture in India

Current Scenario and Policy Framework
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Indian Agriculture has made rapid strides since independence

From food shortages and import to self-sufficiency and exports. selfFrom subsistence farming to intensive and technology led cultivation. Today , India is the front ranking producer of many crops in the world. Ushered in through the green, white, blue and yellow revolutions

Indian Agriculture- Some Facts Agriculture   

Total Geographical Area - 328 million hectares Net Area sown - 142 million hectares Gross Cropped Area 190.8 million hectares Major Crop Production (1999-2000) (1999     

Rice Wheat Coarse Cereals Pulses Oilseeds Sugarcane

89.5 million 75.6 million 30.5 million 13.4 million 20.9 million 29.9 million

tonnes tonnes tonnes tonnes tonnes tonnes

Indian Agriculture- Some Facts Agriculture-

     

Contributes to 24% of GDP Provides food to 1Billion people Sustains 65% of the population : helps alleviate poverty Produces 51 major Crops Provides Raw Material to Industries Contributes to 1/6th of the export earnings One of the 12 Bio-diversity centers in the world with over Bio46,000 species of plants and 86,000 species of animals recorded
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Major Achievements
India is

Largest producer in the world of pulses , tea , and milk Second Largest producer of fruits, vegetables, wheat , rice, groundnut and sugarcane.

IndianAgriculture Scenario STRENGTHS

   

WEAKNESS
    

Rich Bio-diversity BioArable land Climate Strong and well dispersed research and extension system Bridgeable yield crops Exports AgroAgro-based Industry Horticulture Untapped potential in the N.E.

Fragmentation of land Low Technology Inputs Unsustainable Water Management Poor Infrastructure Low value addition Unsustainable Resource Use Unsustainable Regional Development Imports

OPPORTUNITIES
    

THREATS
  

Current Concerns

     

Pressure of the Population on Land Skewed distribution of operational holdings Land Degradation Water Balance Low level of mechanization Low Fertilizer Consumption

The First Ever National Agriculture Policy was announced in July 2000. The Policy seeks to overcome these constraints and achieve


A Growth rate in excess of 4 percent per annum in the agriculture sector. Growth that is based on efficient use of resources, and conserves our soil, water , and bio diversity. Growth with equity, i.e. growth which is widespread across regions, and different classes of farmers. Growth that is demand driven and stabilizes domestic markets and maximizes benefits from exports in the face of Global Challenges. Growth that is sustainable ,technologically , environmentally, and economically.
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The Policy has indicated a nine-fold package of ninepolicy initiatives to achieve the objectives
        

Development of Sustainable agriculture Food and Nutritional security Generation and Transfer of Technology Improvement of input efficiency Provision of incentives for agriculture Promotion of Investments in agriculture Strengthening of institutional infrastructure Better risk management Introduction of Management Reforms

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TARGETS

Food Grain Production will be doubled in ten years, so as to make India hunger free . Special emphasis will be on horticulture production in order to achieve a quantum increase. Allied sectors like live stock, dairy poultry, fisheries, will be promoted Production of oilseeds and pulses will be raised substantially.

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Strategies & Initiatives : Enhancing Value Addition

- 98% of fruits and vegetables are sold as fresh products.
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processing accounts for only 7% of agricultural value. wastage levels are extremely high. Improved post harvest interventions: price support mechanism, grading, handling, storage, packaging, marketing, processing.

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Strategies & Initiatives : Enhancing Value Addition

Draft National Policy on Food Processing prepared. Draft Processed Food Development Act formulated. Package of promotional schemes available for infrastructure development and quality improvement. To raise the processing level by 10% , an investment of approximately Rs 1400 billion required.
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Indias International Trade - 2001-02 2001Agriculture Non-Agriculture 2500 2000 1500 1000 500 0 Exports Imports 2148 1736
120 289

Rs Billions
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Strategies & Initiatives : Promotion of Exports



Indias competitive advantage - Diverse agro climatic conditions.

- Sufficiency of Inputs. - Reasonable labour costs.

Agriculture exports from India account for less than 1% world trade in Agriculture commodities. - Target is to raise Indias share to 2% .


   

Thrust Areas
Improvement and maintenance of quality. Consonance with International Standards. Strengthening of Infrastructure. Identification of niche products and markets.
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Indias Agricultural Export Potentials

         

Marine Products Rice Wheat Condiments and Spuces Cashew Tea Coffee Castor Jute Fruits and Vegetables- Onions, Mango, Grapes, Banana, VegetablesTomato , Potato , Lichchi ,etc.
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THANK YOU

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