53211076 Agricultural Reform in India Zarapkar

8/3/2019 53211076 Agricultural Reform in India Zarapkar

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AGRICULTURAL

REFORMS IN INDIA



Presented By Presented By

Mr. Devraj Satish ZarapkarMr. Devraj Satish Zarapkar

MMMMMM Allana Institute Of Management Studies Allana Institute Of Management Studies



Agriculture in India Agriculture in India►

Largest and one of the mostLargest and one of the mostProminent sector in economy.Prominent sector in economy.

► Agriculture and Forestry, Logging, Agriculture and Forestry, Logging,Fishing accounted for 16.6% of theFishing accounted for 16.6% of theGDP in 2007.GDP in 2007.

► Employs 60% of India’s population.Employs 60% of India’s population.► Accounts for 8.56% of India’s Accounts for 8.56% of India’s

exports.exports.► About 43% of India's geographical About 43% of India's geographical

area is used for agricultural activityarea is used for agricultural activity► Decline of its share in the GDP.Decline of its share in the GDP.► Monsoons play a critical role inMonsoons play a critical role in

agriculture.agriculture.



History of Indian AgricultureHistory of Indian Agriculture

► By 6th millennium BC, Wheat and some legumes wereBy 6th millennium BC, Wheat and some legumes werefound in Indus valley.found in Indus valley.

► By 4000 BC, wheat, peas, dates and mangoes.By 4000 BC, wheat, peas, dates and mangoes.► By 3500 BC, cotton and cotton textiles were found in theBy 3500 BC, cotton and cotton textiles were found in the

valley.valley.► By 3000 BC, rice and sugar cane had started.By 3000 BC, rice and sugar cane had started.► By 2500 BC, rice was an important component of theBy 2500 BC, rice was an important component of the

staple diet in Mohenjodaro. staple diet in Mohenjodaro.► By 2000 BC, tea, bananas and apples were beingBy 2000 BC, tea, bananas and apples were being

cultivated.cultivated.



Agricultural Movements Agricultural Movements



Green Revolution in IndiaGreen Revolution in India

In 1965 the present government of In 1965 the present government of

Mrs . Indira Gandhi decided to take a major Mrs . Indira Gandhi decided to take a major

step on present Agriculture condition . step on present Agriculture condition .

Thus "Green Revolution" was applied to theThus "Green Revolution" was applied to the

period from 1967 to 1978 basically in period from 1967 to 1978 basically in

parts of Punjab and Haryana . parts of Punjab and Haryana .

At this stage the Green Revolution was At this stage the Green Revolution was

concern only with Wheat & Rice .concern only with Wheat & Rice .



Dr.M Dr.M S SwaminathanS Swaminathan

from India led thefrom India led the

Green Revolution asGreen Revolution as

the Project Director.the Project Director.

&&Dr. Norman BorlaugDr. Norman Borlaug

from Mexico supported from Mexico supported

the Green Revolutionthe Green Revolution

through thethrough theintroduction of highintroduction of high

yielding variety of yielding variety of

wheat seeds.wheat seeds.



Green Re v o lu t io n

Con t i n ued e xpa n s i o n o f fa rm i ng

a r e a s

Dou b l e - c r opp ing e x i s t i n g

f a rm l and

Us i n g s eed s w i t h im p ro vedgene t i c s .



The introduction of high-yielding varieties of seedsThe introduction of high-yielding varieties of seeds

after 1965 and the increased use of fertilizers and after 1965 and the increased use of fertilizers and

irrigation.irrigation.

Provided the increase in production needed to makeProvided the increase in production needed to make

India self-sufficient in food grains, thus improving India self-sufficient in food grains, thus improving

agriculture in India.agriculture in India.

It introduced the new techniques and machinery to It introduced the new techniques and machinery to

farmersfarmers



Result Of The Green RevolutionResult Of The Green Revolution

Statistical Result Statistical Result

Economic Result Economic Result

Sociological Result Sociological Result

Political Result Political Result



Statistical ResultsStatistical Results

The Green Revolution resulted in a record The Green Revolution resulted in a record

grain output of 131 million tons in 1978-79. grain output of 131 million tons in 1978-79.

This established India as one of the world'sThis established India as one of the world'sbiggest agricultural producers.biggest agricultural producers.

No other country in the world, whichNo other country in the world, which

attempted the Green Revolution recorded attempted the Green Revolution recorded

such level of success. such level of success.



Economical Resultconomical Result► The increase in irrigation created need The increase in irrigation created need of new dams to harness monsoonof new dams to harness monsoon

water.water.

► This in turn boosted industrial growth,This in turn boosted industrial growth,created jobs and improved the quality created jobs and improved the quality of life of the peopleof life of the people

► India paid back all loans taken from India paid back all loans taken fromthe World Bank for the purpose of thethe World Bank for the purpose of theGreen Revolution.Green Revolution.



►Sociological Resultociological Result

► The Green Revolution created plenty of The Green Revolution created plenty of

jobs not only for agricultural workers jobs not only for agricultural workers

but also industrial workersbut also industrial workers

► By the creation of lateral facilities suchBy the creation of lateral facilities such

as factories and hydro-electric power as factories and hydro-electric power

stations help to uplift the social as well stations help to uplift the social as well as the economic condition .as the economic condition .



►Polit ical Resultolit ical Result



Limitations of the Greenimitations of the Green

Revolutionevolution

► The Green Revolution, howsoever The Green Revolution, howsoever impressive, but NOT succeeded in makingimpressive, but NOT succeeded in making

India totally and permanently self-sufficient India totally and permanently self-sufficient in food.in food.

► In terms of crops, it remains largely In terms of crops, it remains largely

confined to food grains only.confined to food grains only.

► Only Punjab and Haryana states showed Only Punjab and Haryana states showed best results of Green Revolution.best results of Green Revolution.



Green RevolutionGreen Revolution

►

The new organic farmers cite, fertilizer,The new organic farmers cite, fertilizer,and pesticides, and chemical used areand pesticides, and chemical used are

ruining the soil.ruining the soil.

► The new f a rm i ng t e c hn i que s , h a s g i v enhe n ew f a rm i ng t e c hn i que s , h a s g i v en

b i r t h t o the s e r i ou s p o l l u t ion o f d r i n k i ng wa te ri r th t o t he s e r i ou s p o l l u t ion o f d r i n k i ng w a te rc au s i n g c an ce r and o t h e r d i s e a s e s .au s i n g c an ce r and o t h e r d i s e a s e s .

► A recent Punjabi University study found a A recent Punjabi University study found a

high rate of genetic damage among farmers,high rate of genetic damage among farmers,

which was attributed to pesticide use.which was attributed to pesticide use.



Reduced genetic diversityeduced genetic diversity Increased vulnerability toncreased vulnerability topestsests

Soil erosionoil erosion Water shortagesater shortages Reduced soil fertil ityeduced soil fertility

Micronutrient deficienciesicronutrient deficiencies Soil contaminationoil contamination Reduced availability ofeduced availability of

nutritious food cropsutritious food crops The displacement of vasthe displacement of vast

numbers of small farmersumbers of small farmers

Rural impoverishment andural impoverishment andincreased tensions andncreased tensions andconflictsonflicts ..

Problems created by Green

revolution



PrecautionsrecautionsProper planning and Implementation of Proper planning and Implementation of

Agricultural Plan Agricultural Plan

Avoiding access use of chemical fertilizers and Avoiding access use of chemical fertilizers and

PesticidesPesticides

Proper irrigation systems so that water wastageProper irrigation systems so that water wastage

can be controlled can be controlled

Frequent Pollution Control Check of the soil Frequent Pollution Control Check of the soil

should be doneshould be done



Organic Farming – A multidimensionalOrganic Farming – A multidimensional

Analysis Analysis



History of organic farmingHistory of organic farming

► Origin: Asian countriesOrigin: Asian countries

► 1905-1924: Albert Howard (British) worked as agrl. Advisor in Pusa1905-1924: Albert Howard (British) worked as agrl. Advisor in Pusadocumented traditional farming practices, Book: Agricultural Testamentdocumented traditional farming practices, Book: Agricultural Testament

► 1939: Eve Balfour (England) Haughley experiment compared organic and1939: Eve Balfour (England) Haughley experiment compared organic andconventional farming, Book: Living soilconventional farming, Book: Living soil

► 1940: Rudolf Steiner (Germany) Biodynamic agriculture1940: Rudolf Steiner (Germany) Biodynamic agriculture

► 1940: Masanobu Fukoka (Japan)1940: Masanobu Fukoka (Japan)

► 1950: J.I. Rodale(US) popularize through organic gardening1950: J.I. Rodale(US) popularize through organic gardening

► 1962: Rachel Carson: Silent Spring Effect of pesticides on environment\ 1962: Rachel Carson: Silent Spring Effect of pesticides on environment\

► 1970: Global movements1970: Global movements

► 1972: IFOAM1972: IFOAM

► 1980- till date:1980- till date:

http://en.wikipedia.org/wiki/Image:Wayanad_scenery.JPG



Need for Organic FarmingNeed for Organic Farming

World Food Summit, Rome, (1996) Food security is achievedWorld Food Summit, Rome, (1996) Food security is achievedwhen all people at all times have physical and economic accesswhen all people at all times have physical and economic access

to sufficient safe and nutritious food to meet their direct needsto sufficient safe and nutritious food to meet their direct needs

and food preferences for an active and active healthy lifeand food preferences for an active and active healthy life

Sabharwal, Secretary, APEDA (2002): Developed countries areSabharwal, Secretary, APEDA (2002): Developed countries are

dependent on developing countries like India to the extent of dependent on developing countries like India to the extent of 30-50% for their requirements of organic food products and30-50% for their requirements of organic food products and

India should seize the opportunity to tap these marketsIndia should seize the opportunity to tap these markets

FAO (2002) Price premium of organic products about 20-30%FAO (2002) Price premium of organic products about 20-30%

Organic farming is the only way farmers can escape from theOrganic farming is the only way farmers can escape from the

vicious cycle of debt and a negative economy. It is growingvicious cycle of debt and a negative economy. It is growing

everywhere, because consumers don’t want to be poisonedeverywhere, because consumers don’t want to be poisoned

with toxic residues from agrochemicals. It is also necessarywith toxic residues from agrochemicals. It is also necessary

from the point of view of small producers (Vandana, 2003)from the point of view of small producers (Vandana, 2003)

Between 1998 and 2002, the compound annual growth rate of Between 1998 and 2002, the compound annual growth rate of the organic food market was 17.7 percent. In 2004, the marketthe organic food market was 17.7 percent. In 2004, the market

http://en.wikipedia.org/wiki/Image:Wayanad_scenery.JPG



DefinitionDefinition

► Organic farming is a production system which avoids orOrganic farming is a production system which avoids orlargely excludes the use of synthetically compoundedlargely excludes the use of synthetically compounded

fertilizers, pesticides , growth regulators and livestock feedfertilizers, pesticides , growth regulators and livestock feed

additives . To the maximum extent feasible it relies upon cropadditives . To the maximum extent feasible it relies upon crop

rotations, crop residues, animal wastes, mechanicalrotations, crop residues, animal wastes, mechanical

cultivation, mineral bearing rocks and aspects of biologicalcultivation, mineral bearing rocks and aspects of biologicalpest control to maintain soil productivity and tilth to supplypest control to maintain soil productivity and tilth to supply

plant nutrients and to control insects, weeds and other pestsplant nutrients and to control insects, weeds and other pests

(Lampkin, 1990)(Lampkin, 1990)

► Organic agriculture is a unique production managementOrganic agriculture is a unique production managementsystem which promotes and enhances agro eco-systemsystem which promotes and enhances agro eco-system

health, including bio- diversity, biological cycles and soilhealth, including bio- diversity, biological cycles and soil

biological activity and this is accomplished by using on-farmbiological activity and this is accomplished by using on-farm

agronomic, biological and mechanical methods in exclusion of agronomic, biological and mechanical methods in exclusion of

all synthetic off -farm inputs (FAO, 1993).all synthetic off -farm inputs (FAO, 1993).

P ti f d tiPromotion for production

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Promotion for productionPromotion for production

and trade of organicand trade of organic

products in Indiaproducts in India

► Planning commission (2000): Steering group on agriculture and organicPlanning commission (2000): Steering group on agriculture and organicfarming as a national challengefarming as a national challenge

► NAP(2000): promotion of traditional knowledgeNAP(2000): promotion of traditional knowledge►

MOA(2000): Task force on organic farming,MOA(2000): Task force on organic farming,

DAC has formulated a schemeDAC has formulated a scheme

for giving a major importance to organic farming by setting up a NIOFfor giving a major importance to organic farming by setting up a NIOF

► MOC(2000): NPOPMOC(2000): NPOP► National centre for organic farming, Ghaziabad National centre for organic farming, Ghaziabad

► ICAR & SAUsICAR & SAUs

►

International Food and Vegetable Marketing Association in IndiaInternational Food and Vegetable Marketing Association in India► Association for promotion of organic farming (APOF), BangaloreAssociation for promotion of organic farming (APOF), Bangalore

► APEDA, Coffee Board, Spices Board, Tea Board, Coconut Development BoardAPEDA, Coffee Board, Spices Board, Tea Board, Coconut Development BoardCocoa and cashew nut boardCocoa and cashew nut board

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► Agriculture Man Ecology (AME), Bangalore Agriculture Man Ecology (AME), Bangalore

► Agricultural Renewal in India for a Sustainable Agricultural Renewal in India for a Sustainable

Environment (ARISE), PuducheryEnvironment (ARISE), Puduchery

► All India Federation of Organic Farmers (AIFOF), All India Federation of Organic Farmers (AIFOF),

ThaneThane

► 30,000 organic farmers and 8,000 organic farms. In30,000 organic farmers and 8,000 organic farms. In

Tamil Nadu alone, about 500 organic farms and 3,000Tamil Nadu alone, about 500 organic farms and 3,000

organic farmers (Ranganathan, 2005) President of organic farmers (Ranganathan, 2005) President of

poison free food and VP of LEISA poison free food and VP of LEISA ► 43000 ha (0.03 %) is under organic farming43000 ha (0.03 %) is under organic farming

► 30 per cent of Indian farmers are organic.30 per cent of Indian farmers are organic.



Agricultural Movements Agricultural Movements

► It was the name of a rural developmentIt was the name of a rural development

programmeprogramme

► Started by National Dairy Development BoardStarted by National Dairy Development Board

(NDDB) in 1970.(NDDB) in 1970.► Objective was creating a nation wide milk grid.Objective was creating a nation wide milk grid.

► Movement followed the Green Revolution andMovement followed the Green Revolution and

alleviating poverty and famine levels.alleviating poverty and famine levels.► India became the largest producer of milk andIndia became the largest producer of milk and

milk products.milk products.

► Hence, also known as White Revolution of India.Hence, also known as White Revolution of India.

Operation FloodOperation Flood



Agriculture in IndiaAgriculture in India

Current ScenarioCurrent Scenario

andand

Policy Framework Policy Framework



Indian Agriculture has made rapid strides sinceIndian Agriculture has made rapid strides since

independenceindependence

► From food shortages and importFrom food shortages and import

to self-sufficiency and exports.to self-sufficiency and exports.

► From subsistence farmingFrom subsistence farming

to intensive and technology led cultivation.to intensive and technology led cultivation.► Today , India is the front rankingToday , India is the front ranking

producer of many crops in the world. producer of many crops in the world.

► Ushered in through theUshered in through the

green, white, blue and yellow revolutionsgreen, white, blue and yellow revolutions



Indian Agriculture- Some FactsIndian Agriculture- Some Facts

► Total Geographical Area - 328 million hectaresTotal Geographical Area - 328 million hectares

► Net Area sown - 142 million hectares Net Area sown - 142 million hectares

► Gross Cropped Area – 190.8 million hectaresGross Cropped Area – 190.8 million hectares

► Major Crop Production (1999-2000)Major Crop Production (1999-2000)

► RiceRice 89.5 million tonnes89.5 million tonnes

► WheatWheat 75.6 million tonnes75.6 million tonnes

► Coarse CerealsCoarse Cereals 30.5 million tonnes30.5 million tonnes

► PulsesPulses 13.4 million tonnes13.4 million tonnes

► OilseedsOilseeds 20.9 million tonnes20.9 million tonnes

► SugarcaneSugarcane 29.9 million tonnes29.9 million tonnes



Indian Agriculture- Some FactsIndian Agriculture- Some Facts

► Contributes toContributes to 24%24% of GDPof GDP

► Provides food toProvides food to 1Billion1Billion peoplepeople

► Sustains 65% of the population : helps alleviate povertySustains 65% of the population : helps alleviate poverty

► Produces 51 major CropsProduces 51 major Crops

► Provides Raw Material to IndustriesProvides Raw Material to Industries

► Contributes to 1/6Contributes to 1/6thth of the export earningsof the export earnings

► One of the 12 Bio-diversity centers in the world with over 46,000One of the 12 Bio-diversity centers in the world with over 46,000species of plants and 86,000 species of animals recordedspecies of plants and 86,000 species of animals recorded



Major AchievementsMajor Achievements

India isIndia is

► Largest producer in the world of pulses , tea , and milk Largest producer in the world of pulses , tea , and milk

► Second Largest producer of fruits, vegetables, wheat ,Second Largest producer of fruits, vegetables, wheat ,

rice, groundnut and sugarcane.rice, groundnut and sugarcane.



Indian Agriculture ScenarioIndian Agriculture Scenario

STRENGTHSSTRENGTHS► Rich Bio-diversityRich Bio-diversity

► Arable landArable land

► ClimateClimate

► Strong and well dispersedStrong and well dispersedresearch and extension systemresearch and extension system

OPPORTUNITIESOPPORTUNITIES► Bridgeable yield cropsBridgeable yield crops

► ExportsExports

► Agro-based IndustryAgro-based Industry

► HorticultureHorticulture

► Untapped potential in the N.E.Untapped potential in the N.E.

WEAKNESSWEAKNESS► Fragmentation of landFragmentation of land

► Low Technology InputsLow Technology Inputs

► Unsustainable Water ManagementUnsustainable Water Management

► Poor InfrastructurePoor Infrastructure► Low value additionLow value addition

THREATSTHREATS► Unsustainable Resource UseUnsustainable Resource Use

►

Unsustainable RegionalUnsustainable RegionalDevelopmentDevelopment

► ImportsImports



Current ConcernsCurrent Concerns

► Pressure of the Population on LandPressure of the Population on Land

► Skewed distribution of operational holdingsSkewed distribution of operational holdings► Land DegradationLand Degradation

► Water BalanceWater Balance

► Low level of mechanizationLow level of mechanization► Low Fertilizer ConsumptionLow Fertilizer Consumption



The First Ever National Agriculture Policy was announced in July 2000.The First Ever National Agriculture Policy was announced in July 2000.

The Policy seeks to overcome these constraints and achieveThe Policy seeks to overcome these constraints and achieve

► A Growth rate in excess of 4 percent per annum in the agriculture A Growth rate in excess of 4 percent per annum in the agriculture

sector. sector.

► Growth that is based on efficient use of resources, and conservesGrowth that is based on efficient use of resources, and conserves

our soil, water , and bio diversity.our soil, water , and bio diversity.

► Growth with equity, i.e. growth which is widespread acrossGrowth with equity, i.e. growth which is widespread across

regions, and different classes of farmers.regions, and different classes of farmers.

► Growth that is demand driven and stabilizes domestic markets and Growth that is demand driven and stabilizes domestic markets and

maximizes benefits from exports in the face of Global Challenges.maximizes benefits from exports in the face of Global Challenges.

► Growth that is sustainable ,technologically , environmentally, and Growth that is sustainable ,technologically , environmentally, and

economically.economically.



The Policy has indicated a nine-fold package of policyThe Policy has indicated a nine-fold package of policy

initiatives to achieve the objectivesinitiatives to achieve the objectives

► Development of Sustainable agriculture Development of Sustainable agriculture

► Food and Nutritional security Food and Nutritional security

► Generation and Transfer of TechnologyGeneration and Transfer of Technology

► Improvement of input efficiency Improvement of input efficiency► Provision of incentives for agriculture Provision of incentives for agriculture

► Promotion of Investments in agriculture Promotion of Investments in agriculture

► Strengthening of institutional infrastructureStrengthening of institutional infrastructure

► Better risk management Better risk management

► Introduction of Management Reforms Introduction of Management Reforms



TARGETSTARGETS

► Food Grain Production will be doubled in ten years, so as to makeFood Grain Production will be doubled in ten years, so as to make

India hunger free .India hunger free .

► Special emphasis will be on horticulture production in order toSpecial emphasis will be on horticulture production in order to

achieve a quantum increase.achieve a quantum increase.

► Allied sectors like live stock, dairy poultry, fisheries, will beAllied sectors like live stock, dairy poultry, fisheries, will be

promoted promoted

► Production of oilseeds and pulses will be raised substantially.Production of oilseeds and pulses will be raised substantially.



Strategies & Initiatives : Enhancing Value AdditionStrategies & Initiatives : Enhancing Value Addition

- 98% of fruits and vegetables are sold as fresh products.- 98% of fruits and vegetables are sold as fresh products.

- processing accounts for only 7% of agricultural value. processing accounts for only 7% of agricultural value.

- wastage levels are extremely high.wastage levels are extremely high.

Improved post harvest interventions: price support mechanism,Improved post harvest interventions: price support mechanism,

grading, handling, storage, packaging, marketing, processing.grading, handling, storage, packaging, marketing, processing.



Strategies & Initiatives : Enhancing Value AdditionStrategies & Initiatives : Enhancing Value Addition

Draft National Policy on Food Processing prepared.Draft National Policy on Food Processing prepared.

Draft Processed Food Development Act formulated.Draft Processed Food Development Act formulated.

Package of promotional schemes available for infrastructurePackage of promotional schemes available for infrastructure

development and quality improvement.development and quality improvement.

To raise the processing level by 10% , an investment of To raise the processing level by 10% , an investment of

approximately Rs 1400 billion requiredapproximately Rs 1400 billion required..



India’s International Trade - 2001-02India’s International Trade - 2001-02

5000

1000

1500

2000

2500

Exports Imports

Agriculture

Non-Agriculture

2 8 9

1 7 3 62 1 4 8

1 2 0

Rs Billions



Strategies & Initiatives : Promotion of ExportsStrategies & Initiatives : Promotion of Exports

► India’s competitive advantageIndia’s competitive advantage

- Diverse agro climatic conditions.- Diverse agro climatic conditions.

- Sufficiency of Inputs.- Sufficiency of Inputs.

- Reasonable labour costs.- Reasonable labour costs.

► Agriculture exports from India account for less than 1% world tradeAgriculture exports from India account for less than 1% world trade

in Agriculture commodities.in Agriculture commodities.

- Target is to raise India’s share to 2% .- Target is to raise India’s share to 2% .

► Thrust AreasThrust Areas

Improvement and maintenance of quality.Improvement and maintenance of quality.

Consonance with International Standards.Consonance with International Standards.

Strengthening of Infrastructure.Strengthening of Infrastructure.

Identification of niche products and markets.Identification of niche products and markets.



India’s Agricultural Export PotentialsIndia’s Agricultural Export Potentials

Marine ProductsMarine Products

RiceRice

WheatWheat

Condiments and SpucesCondiments and Spuces

CashewCashew

TeaTea

CoffeeCoffee

Castor Castor

JuteJute

Fruits and Vegetables- Onions, Mango, Grapes, Banana,Fruits and Vegetables- Onions, Mango, Grapes, Banana,Tomato , Potato , Lichchi ,etc.Tomato , Potato , Lichchi ,etc.



Agriculture Development Agriculture Development

Strategy for eleventh planStrategy for eleventh plan

New initiatives in the contextew initiatives in the context

off



New InitiativesNew Initiatives

► Strengthening Pulses Production ProgramsStrengthening Pulses Production Programs► Four pronged strategy on Agriculture Growth in the BudgetFour pronged strategy on Agriculture Growth in the Budget

2009-102009-10 Agriculture Production Agriculture Production

Food ProcessingFood Processing

CreditCredit Reducing Wastage of produceReducing Wastage of produce

► Nutrient Based Subsidy effective from April 1, 2010 (FertilizersNutrient Based Subsidy effective from April 1, 2010 (Fertilizersand Chemicals)and Chemicals)

► Rs. 100 crores for ‘Mahila Kisan Sashaktikaran Yojana’ as a subRs. 100 crores for ‘Mahila Kisan Sashaktikaran Yojana’ as a subcomponent of National Rural Livelihood Mission (Ruralcomponent of National Rural Livelihood Mission (RuralDevelopment)Development)

► Additional Central Assistance of Rs. 1200 crores to Additional Central Assistance of Rs. 1200 crores toBundelkhand for drought mitigation (Rural Development)Bundelkhand for drought mitigation (Rural Development)



Tax ConcessionsTax Concessions► Modernizing Mandis or warehousingModernizing Mandis or warehousing

Concessional import duty of 5 % and service tax exemption forConcessional import duty of 5 % and service tax exemption for mechanisedechanised

handlingandling of food grains and sugar in Mandisof food grains and sugar in Mandis

Central excise and service tax exemption to specified equipment forCentral excise and service tax exemption to specified equipment for storage andtorage and

warehousingarehousing of agriculture productsof agriculture products

► Promoting Cold chain infrastructurePromoting Cold chain infrastructure

Concessional customs duty of 5 % with full exemption from service tax to setting upConcessional customs duty of 5 % with full exemption from service tax to setting upof of Cold storage facil it ies and Processing unitsold storage facil it ies and Processing units for such produce.for such produce.

Provide full exemption from customs duty toProvide full exemption from customs duty to refrigeration unitsefrigeration units required for therequired for the

manufacture of manufacture of refrigerated vans or trucksefrigerated vans or trucks

► Promoting Farm MechanizationPromoting Farm Mechanization Concessional customs duty of 5 per cent to specifiedConcessional customs duty of 5 per cent to specified agricultural machinerygricultural machinery notnot

manufactured in India;manufactured in India;

Full exemption from excise duty toFull exemption from excise duty to trailers and semi-trailers used intrailers and semi-trailers used in

agriculturegriculture ..

► Transportation of produceTransportation of produce TheThe transportatioransportation by road of cereals, and pulses to be exempted from servicen by road of cereals, and pulses to be exempted from service

tax. Transportation by rail to remain exempt.tax. Transportation by rail to remain exempt.

Agriculture Development Strategy in the 11Agriculture Development Strategy in the 11thth



Agriculture Development Strategy in the 11 Agriculture Development Strategy in the 11thth five year plan periodfive year plan period

S h



RKVY and MMA

Main Objective

Agriculturegrowth

Salient Feature

Full freedom toStates

NFSM Food production Strategicallytargeted

ISOPOMOil seeds

productionStrategically

targeted

NHM and TMNE HorticultureEnd to endprogram

Micro IrrigationWater useefficiency

Sprinklers andDrips

NREGS Water HarvestingSmall Farm

Development

Schemes

Schemes



Key ChallengesKey Challenges

► Sustained higher production levels of food grainsustained higher production levels of food grains More focused working especially for pulsesMore focused working especially for pulses

► Regional disparityegional disparity Widening the food basketWidening the food basket Broad basing the risks of crop failure due to climatic variabilityBroad basing the risks of crop failure due to climatic variability

► Rainfed area developmentainfed area development

Convergence – mechanism for horizontal working?Convergence – mechanism for horizontal working? Watershed management – Large scale replication of good models?Watershed management – Large scale replication of good models?

► Risk mitigation for Climatic variabil ityisk mitigation for Climatic variabil ity Integrated farming system for diversifying farm portfolio – horticulture, fisheries, dairyIntegrated farming system for diversifying farm portfolio – horticulture, fisheries, dairy

etc. Wadi project of NABARD, Livelihood projects of World Bank?etc. Wadi project of NABARD, Livelihood projects of World Bank?

Seed Rolling Production Plans for quantity of needed varieties– Seeds Mission?Seed Rolling Production Plans for quantity of needed varieties– Seeds Mission?

Conservation Agriculture – National Mission on Sustainable Agriculture?Conservation Agriculture – National Mission on Sustainable Agriculture?

Effective innovative weather based Insurance products – savings linked crop insurance?Effective innovative weather based Insurance products – savings linked crop insurance?

Increased buffer stocks for food grains – grain storage grid?Increased buffer stocks for food grains – grain storage grid?

► Efficient marketing supply chainfficient marketing supply chain Scientific storage and management – fungible warehousing receipts?Scientific storage and management – fungible warehousing receipts? Processing – private investments, logistics management?Processing – private investments, logistics management? Direct marketing – credible contract farming mechanism?Direct marketing – credible contract farming mechanism?

Union Budget 2010



4- pronged Strategy on Agriculture Growth4- pronged Strategy on Agriculture GrowthUnion Budget 2010

Ministry of Agriculture

Ministry of Foodand Consumer

Affairs

Ministry of Finance

Ministry of FoodProcessing



Focus on Pulses and oilseedsFocus on Pulses and oilseeds► Strengthening NFSM PulsesStrengthening NFSM Pulses

Merger of ISOPOM for pulses with NFSMMerger of ISOPOM for pulses with NFSM► More funds – about 1000 crores in next two yearsMore funds – about 1000 crores in next two years

Accelerated pulses production program (A3P) Accelerated pulses production program (A3P)► Block demonstrations of soil nutrient and plant protection centricBlock demonstrations of soil nutrient and plant protection centric

technology in 1000 units of 1000 hectares compact block each fortechnology in 1000 units of 1000 hectares compact block each forfive major pulses with an outlay of 700 croresfive major pulses with an outlay of 700 crores

► Provision for extension staff at unit levelProvision for extension staff at unit level Inclusion of Jharkhand and Assam StatesInclusion of Jharkhand and Assam States

► More funds available under ISOPOM for oilseeds developmentMore funds available under ISOPOM for oilseeds development► Integrated development of 60,000 pulses and oilseeds villages in rainfedIntegrated development of 60,000 pulses and oilseeds villages in rainfed

areas with an outlay of 300 crores under RKVY areas with an outlay of 300 crores under RKVY Watershed management and water harvestingWatershed management and water harvesting

► Community tanksCommunity tanks► Field channelsField channels

Dry land farmingDry land farming► Watershed plus activities for crop developmentWatershed plus activities for crop development

Convergence with NFSM, ISOPOM, NHM, NREGA and NWDPRA Convergence with NFSM, ISOPOM, NHM, NREGA and NWDPRA



Next Steps for A3PNext Steps for A3P►

Prepare an action plan as per the guidelines forPrepare an action plan as per the guidelines forimplementing A3P from April 2010implementing A3P from April 2010 Identification of beneficiaries and units among villagesIdentification of beneficiaries and units among villages

Preparing unit wise district level plansPreparing unit wise district level plans

► Ensure supply of gypsum and plant protection chemicals toEnsure supply of gypsum and plant protection chemicals to

identified beneficiaries through the designated agenciesidentified beneficiaries through the designated agencies► Engage extension staff for unit level positioning and impartEngage extension staff for unit level positioning and impart

an orientation trainingan orientation training KVKs could be actively associatedKVKs could be actively associated

► Capacity building for pest monitoring and pest surveillanceCapacity building for pest monitoring and pest surveillance

by NCIPMby NCIPM► Modalities for implementing integrated development of Modalities for implementing integrated development of

60,000 pulses and oilseeds villages being worked out60,000 pulses and oilseeds villages being worked out



Inter State Productivity GapsInter State Productivity Gaps

StateState CAGRCAGR 2003-042003-04 2007-082007-08 2008-09*2008-09* 2003-04 to 2007-2003-04 to 2007-0808

ProductionProduction YieldYield ProductionProduction YieldYield ProductionProduction YieldYield NormalNormalYieldYield

MaxMaxYieldYield

West BengalWest Bengal 0.690.69 14662.314662.3 25042504 14719.514719.5 25732573 15554.015554.0 26462646 25502550 25932593

Andhra Pradesh Andhra Pradesh 2.672.67 8953.08953.0 30093009 13324.013324.0 33443344 14207.014207.0 32473247 30803080 33443344Uttar PradeshUttar Pradesh -1.45-1.45 13018.813018.8 21872187 11780.011780.0 20632063 13074.013074.0 21712171 19861986 21872187

PunjabPunjab 2.132.13 9656.09656.0 36943694 10489.010489.0 40194019 11000.011000.0 40224022 38763876 40194019

OrissaOrissa 3.153.15 6733.76733.7 14961496 7540.77540.7 16941694 6762.06762.0 15201520 15401540 16941694

Bihar Bihar -5.07-5.07 5447.85447.8 15231523 4418.14418.1 12371237 5668.75668.7 16101610 12331233 15231523

Tamil NaduTamil Nadu 5.115.11 3222.83222.8 23082308 5040.25040.2 28172817 5201.05201.0 25102510 27832783 34233423

ChattisgarhChattisgarh -0.14-0.14 5567.65567.6 14541454 5426.65426.6 14461446 4391.84391.8 11761176 13531353 14541454

Assam Assam -1.77-1.77 3880.03880.0 15341534 3319.03319.0 14281428 3775.03775.0 17201720 14481448 15341534KarnatakaKarnataka 2.542.54 2550.32550.3 23752375 3717.03717.0 26252625 3690.03690.0 24342434 28462846 38683868

JharkhandJharkhand 4.454.45 2310.02310.0 16951695 3336.43336.4 20182018 3304.93304.9 19471947 16281628 20182018

HaryanaHaryana 5.165.16 2790.02790.0 27492749 3613.03613.0 33613361 3298.03298.0 27262726 30723072 33613361

MaharashtraMaharashtra 0.670.67 2835.02835.0 18531853 2996.02996.0 19031903 2311.02311.0 15061506 17291729 19031903

All India All India 1.451.45 88526.088526.0 20782078 96692.996692.9 22022202 99153.799153.7 21862186 21012101 22022202

CAGR**CAGR** 1.051.05

Rice Production in (‘000) tonsYield in kg/ha



Eastern Region DevelopmentEastern Region Development

► Additional Rs. 400 crores provided for the agriculture development Additional Rs. 400 crores provided for the agriculture developmentin Eastern Region comprising of Eastern UP, Chhattisgarh,in Eastern Region comprising of Eastern UP, Chhattisgarh,Jharkhand, Bihar, Orissa, West BengalJharkhand, Bihar, Orissa, West Bengal

► Funds would be released under RKVY. States are expected toFunds would be released under RKVY. States are expected toprepare an action plan containing the following pointsprepare an action plan containing the following points

Identif icationdentif ication of key technologies,of key technologies, constraintsonstraints in development and interin development and intersese priorityriority for implementation for visible impactfor implementation for visible impact Situation reportituation report on current initiatives, preparation of multi year strategyon current initiatives, preparation of multi year strategy

for agriculture development in sync with the DAPs by pooling the resourcesfor agriculture development in sync with the DAPs by pooling the resourcesfrom State plan, and convergence with other ongoing schemesfrom State plan, and convergence with other ongoing schemes

Preparation of Preparation of projectsrojects to implement the strategy in a budget proposalto implement the strategy in a budget proposalworked out by each Stateworked out by each State

Allocation of budget for each State as per the proposal and approval of Allocation of budget for each State as per the proposal and approval of projects within an overall budget allocated for each Stateprojects within an overall budget allocated for each State

Mechanism for regular monitoring of the progress of implementation of theMechanism for regular monitoring of the progress of implementation of theprojectsprojects

► Detailed set of instructions would be prepared in consultation withDetailed set of instructions would be prepared in consultation withthe States for implementation from the Rabi seasonthe States for implementation from the Rabi season



Agri eco Zone wise Regional Strategy Agri eco Zone wise Regional Strategy Lower Gangetic Plains Regionower Gangetic Plains Region

(WB other than Purulia and hil lWB other than Purulia and hil ldistricts)istricts)

• Basically a rice mono cropped areaBasically a rice mono cropped area

• Increasing the cropping intensity byIncreasing the cropping intensity byutilizingutilizing Rabi fallowsabi fallows after harvestafter harvest

of Kharif rice by promoting theof Kharif rice by promoting thecultivation of pulses and oilseedscultivation of pulses and oilseeds

• Diversification of Diversification of upland ricepland rice areasareaswhich are less productive to suitablewhich are less productive to suitablecrops like pulses, oilseeds andcrops like pulses, oilseeds andmillets.millets.

• Development of on-farm irrigationDevelopment of on-farm irrigationresources through exploitation of resources through exploitation of ground water potentialround water potential which iswhich isabundant.abundant.

• Improving subsurface soilImproving subsurface soil drainagerainage

Middle Gangetic Plainsiddle Gangetic Plains

Region (Eas tern U.P. andegion (Eastern U.P. andBiharihar )

• Rice, wheat, sugarcane are the majorRice, wheat, sugarcane are the major

crops. However, productivity is low.crops. However, productivity is low.

• Popularisation of Short duration highPopularisation of Short duration high

yielding varieties/hybrids of rice.yielding varieties/hybrids of rice.

• Promotion of maize cultivationPromotion of maize cultivation

especially in Rabi as it has highespecially in Rabi as it has high

potentialpotential

• Promotion of early maturing varietiesPromotion of early maturing varieties

of sugarcane for higher sugar recoveryof sugarcane for higher sugar recovery

• Development of on-farm irrigationDevelopment of on-farm irrigation

resources thorough exploitation of resources thorough exploitation of

ground water potentialground water potential

• Cattle rearing, poultry, goat rearingCattle rearing, poultry, goat rearing

and fish farming as an off farmand fish farming as an off farm

activity.activity.

lA i i R i l S



Agri eco zone wise Regional Strategy Agri eco zone wise Regional Strategy

Eastern Plateau & Hil ls Region (Partsastern Plateau & Hil ls Region (Partsof Orissa, Jharkhand, Chhattisgarh)f Orissa, Jharkhand, Chhattisgarh)

• Management of rainwaterManagement of rainwaterharvesting and storage forharvesting and storage forincreasing crop productivityincreasing crop productivity

• Promotion of High yieldingPromotion of High yieldingvarieties/hybrids especially that of varieties/hybrids especially that of ricerice

• Expansion of area under HighExpansion of area under Highvalue cash crops and vegetablesvalue cash crops and vegetables

• Improvement in seed supply so asImprovement in seed supply so asto increase the SRR to increase the SRR

• Improvement in productivity of Improvement in productivity of crops in acidic soils through limecrops in acidic soils through limetreatmenttreatment

East Coast Plains & Hil lsast Coast Plains & Hil ls(Part of OrissaPart of Orissa )

• Rice is the lead crop in this zone.Rice is the lead crop in this zone.

However, the productivity is low.However, the productivity is low.

High yielding varieties for waterHigh yielding varieties for waterlogged areas and upland areaslogged areas and upland areas

needs to be propagatedneeds to be propagated

• Discouraging the cultivation of riceDiscouraging the cultivation of rice

in marginal lands and diversifyingin marginal lands and diversifying

in favour of oilseeds and pulsesin favour of oilseeds and pulses

• Utilization of rice fallows forUtilization of rice fallows forincreasing the cropping intensity.increasing the cropping intensity.

• Rice-fish cultureRice-fish culture

• Improving soil drainageImproving soil drainage



Sum upSum up

► Emphasis on Pulses through revampedEmphasis on Pulses through revampedprogrammatic interventions and prevailing goodprogrammatic interventions and prevailing good

market price should help in achievement of market price should help in achievement of

production targets of pulsesproduction targets of pulses

► Focus on Eastern Region that has huge potentialFocus on Eastern Region that has huge potential

would help macro level stability of agriculturewould help macro level stability of agriculture

productionproduction

► Enabling policies on market development wouldEnabling policies on market development wouldbring in private investments for value addition tobring in private investments for value addition to

the harvests and efficiency gains in supply chainthe harvests and efficiency gains in supply chain



PPRODUCTIONRODUCTION

► Largest producer in the world of Largest producer in the world of milk, cashew nuts, coconuts, tea,milk, cashew nuts, coconuts, tea,

ginger, turmeric and black pepper.ginger, turmeric and black pepper.

► World’s largest cattle populationWorld’s largest cattle population

(193 million).(193 million).► Second in world in farm output.Second in world in farm output.

► Second largest producer of wheat,Second largest producer of wheat,

rice, sugar, groundnut and fish.rice, sugar, groundnut and fish.

► It is the 3It is the 3rdrd

largest producer of largest producer of tobacco.tobacco.

► Accounts for 10% of the world fruit Accounts for 10% of the world fruit

production.production.



PPRODUCTION (contd.)RODUCTION (contd.)

CommodityCommodity Output per acreOutput per acreNational averageNational average 0.290.29

SugarcaneSugarcane 26.1526.15

PotatoPotato 6.326.32

WheatWheat 0.840.84

RiceRice 0.700.70

CornCorn 0.640.64

GroundnutGroundnut 0.370.37

Soya beanSoya bean 0.320.32



Factors for low productivityFactors for low productivity

► Illiteracy, reforms andIlliteracy, reforms and

inadequate or inefficientinadequate or inefficient

finance and marketingfinance and marketing

services for farm products.services for farm products.► Average size of land holdings Average size of land holdings

is very small.is very small.

► Adoption of modern Adoption of modern

agricultural practices and useagricultural practices and useof technology is inadequate.of technology is inadequate.

► Irrigation facilities areIrrigation facilities are

inadequate.inadequate.

53211076 Agricultural Reform in India Zarapkar

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