AGRICULTURE YEAR BOOK 2009 1 · AGRICULTURE YEAR BOOK 2009 3 Dear Readers, I am extremely happy to...

AGRICULTURE YEAR BOOK 2009AGRICULTURE YEAR BOOK 2009AGRICULTURE YEAR BOOK 2009AGRICULTURE YEAR BOOK 2009AGRICULTURE YEAR BOOK 2009 1


Dear Readers,

I am extremely happy to present the second edition of Agriculture TodayYearbook 2009. The huge response received for the Year Book 2008 from allsections of the readers was quite overwhelming for us, and which inspired usto work on the 2nd edition. I am grateful to all the readers for their continuedsupport and encouragement to Agriculture Today. With their patronage, themagazine has today emerged as the voice of stake-holders in agriculture.The magazine is not only creating awareness and opinions and providingeffective link to the stake holders in the agriculture system at the nationallevel, but also influencing policies, related to agriculture and agribusiness.

Like the first edition in 2008, the Year Book 2009 also contains a pool ofinformative articles, contributed by most eminent persons in Indian agriculture.Articles on various topics are presented in a lucid way for better reading. Dataand analysis is juxtaposed through out the Book, balancing the presentationsof the contents.

I whole heartedly thank all the eminent persons for their contributing informativeand time relevant articles for the Year Book. These are the pearls that wehave beaded together to shape this Year Book. I hope that the Year Book willserve as a useful guide and reference material to all those related to theagriculture sector, including Government officials, policy makers, scientists,agribusiness companies, NGOs, institutions, agri researchers, professionals,planners etc.. Despite our best efforts, I realize that there is still scope forfurther improvement and we shall better our efforts in the next edition in 2010.

I request all the esteemed readers to lend their valuable support by way ofsending comments and suggestions. I promise to continuously improve andcome out next edition, further better in quality and contents in our strive toreach new heights and continuously live up to the expectations of our readers.

At the end, I would like to thank our beloved Dr. KL Chadha, Pioneer ofHorticulture Revolution in India, for taking the responsibility of being theChairman of the Editorial Board and enrich this venture with his contributions.I may also like to thank the entire Agriculture Today team, especially, Ms. AnjanaNair, Ayan Banerjee, Abid Hussain, Jatin Joshi, Tafeem Siddiqui and AbdulRehman for their untiring efforts in completion of this year book.

With best wishes

M.J. Khan

From Chief Editor’s Desk


C o n t e n t s

No part of this Year Book can be reproduced, imitated or transmitted in any form, including electronic, mechanical,photo copying, recording or any information stage retrieval system or extracted in any way without permission fromthe publishers. Views expressed in the Year Book through the authors need not necessarily be those of the Editor /Publisher.

The visionary and his vision...

Agriculture Integrated to Sustain 6Dr. M S Swaminathan

In Focus

Towards a thriving Indian Agriculture: Challenges and Prospects 18Dr RB Singh

Horticulture: The Next in Agriculture 22Dr KL Chadha

Sustainable Agri-Businesses 28Dr CS Sundaresan

The National Food Security Mission A Major Step Forward 32Dr NB Singh & Dr JP Mishra

WTO Agreement on Agriculture 36Akash Taneja and Dr. A.P. Singh

The Changing Face of Agro Finance 42

Research, Training, Extension and Education

Marketing, Value Addition And Export Of Horticulture And

Processed Products 48Dr.T.M.Gajanana & Dr.M.R.Hegde

Grow biofuel in a sustainable, economical and ecofriendly manner 54Dr TP Singh, Dr Mohar Singh and Dr SK Sharma

Focussed Crops

Marketing, Value Addition & Export Of Horti & Processed Products 58Dr HP Singh


The Yellow Revolution on anvil 62Dr DM Hegde and Dr RVenkattakumar

Spices Scenario 66Dr VA Parthasarathy*, Dr V Srinivasan, Dr B Krishnamoorthy and Dr. M. Anandaraj

Wheat Scenario in India 71Dr SS Singh1 and Dr SK Singh2

Technology intervention in vegetable crops for enhanced

production and export 76Dr Mathura Rai, Dr AK Pandey and Dr AB Rai

IndustryFertilizers: Past, Present and Future 84Dr G Raviprasad

The Seed that Changed the Face of Indian Agriculture 88Dr HS Gupta, Dr Malavika Dadlani and Dr KV Prabhu

Micro Irrigation: Way to judicious water use 92

Agriculture Credit: Opening New Vistas 96

Public-Private Partnership: A Boon for Agriculture 100Vishal Khullar

Saving Crop Saving India 102

Livestock

Animal Husbandry: Research And Policy Perspective 111Dr KM Bujarbaruah

Livestock Towards Livelihood of Small Farmers in India 114Dr Purvi Mehta Bhatt and Dr Ian Wright

Reinventing Indian Traditional Milk Production system For Healthy

Human, Animals & Environment 117Dr MJ Saxena and Dr Anup Kalra

Livestock and livelihood development 120Dr VK Taneja

Dairy Farming - Towards livelihood security of small farmers 123Dr Amrita Patel

Services

Emerging Career Opportunities for Agriculture Graduates 128MJ Khan, CEO, Concept Agrotech Consultants Limited


AgroBusiness: Developing leaders of tomorrow 132Dr BDTripathi

The Back Drop: Agribusiness-Past and Present 133Pinaki Ranjan Dey, Head- Research and Studies, Concept Agrotech Consultants Limited

Major Initiatives

Emerging Concepts to Submerge the Global Food Insecurity 138Dr MH Mehta

Ensuring the Unsure 140M Parshad

Emerging Areas

Prospects of Organic Farming in India 144Dr A Subba Rao

ICTs in Agriculture 148 Dr. V.P. Sharma

ORGANIC RICE IN INDIA 153DrTK Adhya

Organic Agriculture and Markets in India 156Manoj Kumar Menon

A thought...

Second Green Revolution And Sustainable Development 160Dr KP Agarwal

Revolutionizing Agriculture To Combat Hunger 162Dr S K Gupta

Future OutlookA Sure Future for Indian Agriculture 166Robert de Bos


The visionaryThe visionaryThe visionaryThe visionaryThe visionaryandandandandand

his visionhis visionhis visionhis visionhis vision...............


Agriculture Integrated to

SustainThe Green Revolution of the six-

ties helped us to instill self-confi-dence in our agricultural capabilityand also to purchase time in rela-tion to achieving a balance betweenpopulation growth and food produc-tion. Such a revolutionary progressparticularly in the production of wheatand rice became possible throughsynergy between technology andpublic policy supported by farmers’enthusiasm generated through Na-tional Demonstrations in the fieldsof resource poor farmers with smallholdings. From the nineties onwardsthere has been a deceleration in therate of growth of food production. It iswidely felt that there has been a fa-tigue of the green revolution. Simul-taneously, several environmentaland economic problems hamperingagricultural growth appeared. Obvi-ously, if farm economics and ecol-ogy go wrong, nothing else will goright in agriculture.

In January 1968, addressing theIndian Science Congress atVaranasi, I made the following state-ment:

“Exploitive agriculture offers greatdangers if carried out with only animmediate profit or production mo-tive. The emerging exploitive farm-

ing community in India should be-come aware of this. Intensive cultiva-tion of land without conservation ofsoil fertility and soil structure wouldlead, ultimately, to the springing upof deserts. Irrigation without arrange-ments for drainage would result insoils getting alkaline or saline. Indis-criminate use of pesticides, fungi-cides and herbicides could causeadverse changes in biological bal-ance as well as lead to an increase inthe incidence of cancer and otherdiseases, through the toxic residuespresent in the grains or other edibleparts. Unscientific tapping of under-ground water will lead to the rapid ex-haustion of this wonderful capital re-source left to us through ages of natu-ral farming. The rapid replacementof numerous locally adapted variet-ies with one or two high-yieldingstrains in large contiguous areaswould result in the spread of seriousdiseases capable of wiping out theentire crop, as happened prior to theIrish potato famine of 1854 and theBengal rice famine in 1942. There-fore the initiation of exploitive agri-culture without a proper understand-ing of the various consequences ofevery one of the changes introducedinto traditional agriculture, and with-

out first building up a proper scien-tific and training base to sustain it,may only lead us, in the long run, intoan era of agricultural disaster ratherthan one of agricultural prosperity.”

Later, I coined the term the Ever-green Revolution to denote the needfor enhancing productivity in perpetu-ity without associated ecologicalharm. The pathways to achieving anEver-green Revolution could be ei-ther organic farming or green agri-culture. Organic farming precludesthe use of mineral fertilizers, chemi-cal pesticides and genetically modi-fied varieties. It however permits theuse of marker assisted selection. Incontrast, Green Agriculture promotesthe use of integrated nutrient supply,integrated pests management andappropriate varieties, whether devel-oped by Mendelian or Molecularbreeding.

Organic farming will be possibleif crop – livestock farming systems canbe adopted. In our country, nearly 80%of farmers possess only one hectareof land or below. For such resourcepoor farmers green agriculture will bethe feasible method of soil fertility res-toration and effective plant protection.Therefore we should develop certifi-cation procedures both for green ag-riculture and organic farming.

Ever-green Revolution will help us

Dr. M S Swaminathan


to take advantage of the vast untappedyield reservoir existing in most crop-ping systems even with the technolo-gies on the shelf. Rising internationalfood costs and diminishing globaland national food reservesemphasise that we should dependfor our food security mainly on homegrown food. A home grown foodbased food security system has alsothe advantage that it can help to in-crease the income of farmers andstrengthen rural livelihoods.

Inspite of our progress in agricul-ture, we still have a large number ofchildren, women and men going tobed partially hungry. We shouldtherefore impart a nutrition dimen-sion to food production. I would liketo briefly discuss methods of achiev-ing nutrition security for all.

The Government of India has pro-moted a paradigm shift in policy andprogramme formulation from foodsecurity at the aggregate level to nu-trition security at the individual level.Nutrition security is best defined as“physical, economic and social ac-cess to balanced diet, safe drinkingwater, environmental hygiene, pri-mary healthcare and primary educa-tion”. Thus attention to both food andnon-food factors will be important forachieving nutrition security at the levelof each child, woman and man.

Both childhood and adult Malnu-trition levels are unacceptably high inmost parts of the country. There isneed to focus attention on the stateswhere the frequency of malnutritionis very high such as Orissa,Jharkhand, Bihar, etc. The data shouldalso be disaggregated according togender and age. The nutritional prob-lems relating to women and childrenshould be highlighted. The statisticsshould not be only one of despair butalso should be one of hope, drawingattention to the best examples of over-coming both endemic and hidden (i.e.deficiency of micronutrients like iron,iodine, zinc and Vitamin A) hunger.

The response of state and cen-tral governments, industry, academiccivil society organizations, bilateraland multilateral agencies, financialinstitutions and the mass mediashould be on a life cycle basis. Thepresently available nutrition supportschemes available may be groupedas follows:� Pregnant women with reference

to maternal and fetal under-nu-trition leading to babies with lowbirth weight

� 0-2 infants (age group needingspecial attention and care)

� 2-6 children - ICDS� 6-16 school going children -

Noon-meal programmes� Adults – Food for Work, NREGA,

PDS etc.,� Old and infirm persons – spe-

cial programmes likeAnnapoorna

A life cycle approach will help toidentify gaps and deficiencies in on-going programmes and help to en-sure nutrition security from birth todeath. The Action Plan for NutritionalMalady – Horticultural Remedy pro-moting a Nutrition Secure Indiashould be doable and affordable. Forexample, a universal PDS expandedto cover locally grown nutritious mil-lets, tubers etc., as well as dhal, andedible oil could be implemented withthe potential for an immediate impacton malnutrition. The various ongoingmissions like the National Horticul-ture Mission, National Food SecurityMission and Rashtriya Krishi VikasYojana can make a substantial con-tribution to achieving nutrition secu-rity for all, provided nutritional dimen-sions can be mainstreamed into theplanning and resource allocation pro-cess relating to these well fundedNational Missions. For this purposea Nutrition Task Force consisting ofeminent experts may be attached toeach of the Missions. The NutritionTask Force attached to the Horticul-ture Mission can indicate how locallevel nutritional maladies, with par-ticular reference to micronutrient de-ficiencies, can be overcome through

horticultural remedies.

Hunger Fighters:Finally, Panchayati Raj

Institutions are powerful tools forspreading Nutrition Literacy and forensuring the success of nutritionintervention and safety netprogrammes. It will be useful toundertake the training of one womanand one male member in eachPanchayat as Hunger Fighters. TheGrameen Gyan Abhiyan Movementinvolving the establishment of a GyanChaupal in every Panchayat could bemobilized for Nutrition Literacy andAdvocacy. Panchayati Raj Institutionscan also help in achievingconvergence and synergy amongnumerous on-going programmesbased on a life cycle approach. TheGram Sabhas could monitor theimpact of nutrition supportprogrammes based on indicatorslike the frequency of LBW children,IMR, MMR, stunting, wasting, etc.,Continuous monitoring by GramSabhas assisted by expert guidancefrom agricultural, rural, and women’scolleges and home science collegeswill help to ensure that theprogrammes are really effective at theground level.

Nutrition secure India is an ideawhose time has come, because ofour high economic growth rate andvast untapped agricultural productionpotential. However, this can beachieved only if there is the requisitefusion of political will and action, pro-fessional skill and peoples’ partici-pation.

Noted Agriculture Scientist and MP(Rajya Sabha)

�


Dutta Irriga-tion


Agriculture –Agriculture –Agriculture –Agriculture –Agriculture –The CurThe CurThe CurThe CurThe Currentrentrentrentrent

OverOverOverOverOverviewviewviewviewview


GDP and AgricultureThe contribution of agriculturetowards India’s GDP has beendeclining over the years. As a nationtravels on the path to becoming adeveloped economy, the level ofcontribution of Agriculture is seento come down in the nation’s totalGDP. However, India cannot takethis as a sole indicator, as theservices sector has increasedconsiderably but the manufacturingsector has not increased to thatextent. For a nation to grow,decrease in contribution ofagriculture must be accompaniedalongside with substantial increasein the manufacturing sector.

Acreage of Major CropsDetailed Crop Acreage of theCountry· Area and production of all the

important crops haveincreased during theperiod between2002-03 and 2006-07

· Area of fruits hasi n c r e a s e dsignificantly (bymore than 45%)during the period.However, its to benoted that 2006-07was advanceestimates

Increased acreage ofhorticultural crops is cleardriver of the farm

i m p l e m e n t slike plantp r o t e c t i o ne q u i p m e n tmarket inrecent timesand in the nearfuture to come.

C r o pAcreages

Agrochemical market growth isdependent on the principle ofdisease triangle i.e. Host –Pathogen – Environment. Thereforecrop acreage and its trend govern

the usage of different types ofagrochemicals.

PaddyAcreage under paddy is decreasingat a marginal rate of 0.43 per cent;however production is increasing atthe rate of 5 per cent. The majorstates where acreage is decreasingare AP, Bihar, and Tamil Nadu,however production is increasing atthe rate of 11, 22 & 26 percentrespectively. It reflects that morearea is coming under HYV andhybrids and use of inputs asfertilizers & agrochemicals is also

Indian Agriculture

A study with numbers


showing decreasing trends areHaryana, Karnataka, Punjab,Uttaranchal & West Bengal on theother hand acreage is growing inChattisgarh & Maharashtra

VegetablesAcreage under vegetable crop isgrowing at an annual growth rate of2.5 per cent since last 5 years;however yield is more or lessstable. Vegetables are highagrochemical consuming cropstherefore states where area undervegetables are increasing,agrochemical sales are bound togo up. In some states even ifacreage has been improving,productivity has been showing theopposite trend especially inKarnataka, Maharashtra, Haryana,Punjab & J&K. Therefore there ishuge scope for using quality inputsincluding agrochemicals.

Fruit CropAcreage under fruit crops isincreasing at the annual growth rateof 6.5 per cent, while production isincreasing at an annual growth rateof 5.6 per cent which means overallproductivity is not increasing,however more area is coming underfruit crops and in turn agrochemicalsconsumption per unit area willincrease and as productivity is stillmaintained at an earlier level, there

increasing. Figure indicates that themajor market growth in paddysegment will be in AP, Bihar, TamilNadu, while in other states marketwill grow at nominal rate

CottonAcreage in cotton is growing at anannual growth rate of 27.5 per cent,however production is growing at alower rate of 11 per cent annually.Major shift is due to the introductionof Bt cotton during the last fewyears, however this growth rate willcome down in future 2 to 3 yearsand on the other hand productionwill go up. In the coming years,major agrochemical market forsucking pest will grow in Punjab,Haryana, Gujarat, Maharashtra, AP& Karnataka, however totalinsecticides market in cotton willfurther come down.

SugarcaneAcreage under sugarcane is more

or less stable and is growing at amarginal rate of 2 per cent andproduction is also increasing at anominal growth of 3 %. States


is huge scope of increasing thesame.

Pulses & WheatAcreage and production is more orless stable for Pulses & Wheat andthere is no significant increase inacreage or production that meansproductivity is maintained at theearlier level and there is scope forincreasing productivity per unit landby proper crop management anduse of quality agro-inputs

Irrigation Scenario� Barring 2002-03, there has

been a constant increase in thetotal area under irrigation in thecountry (Figure 3).

� There is a net increase of 8.6%in the total irrigated areabetween 2001-02 (79.3 millionha) and 2006-07 (86.2 millionha)

� Irrigated area in MadhyaPradesh has increasedsignificantly, indicating clearlythat it’s a strategic state forfarm implements, mostimportantly PPEs.

� Area under irrigation inRajasthan and Karnataka hasalso increased significantly by18% and 16.6% respectively.

� Chattisgarh would be anotherstrategic state for players infarm equipments as this statehas increased its area underirrigation between 2001-02 and2006-07 by 21 % and is also astate where cultivation of fruitshas increased the maximum.The area under fruit cultivationin Chattisgarh increasedsteeply from 16000 ha in 2002-


03 to 90000 ha in 2006-07.

Agriculture CreditCredit flow in agriculture has alsoincreased significantly in the last 4years, clearly indicating thrust onthe use of quality inputs inagriculture along with governmentpriority. With realization of betterprices for agriculture produce, loanrepayment is also better incomparison with the earlier years.This trend indicates that farmers aretrying to increase productivity formaximizing returns, and they arealso ready to invest in quality farminputs including agriculturalimplements which increases inputefficiency and reduces costs.Further thrust of government onhorticulture (through variousschemes of NHB / HorticultureMission) as a growth driver foragriculture will further see growthof agro implements for horticultureuse.

Capital Formation inAgricultureGross capital formation inagriculture is decreasing in relationto the total capital formation overthe years, which indicates reducedgovernment role in development(agro infrastructure) of agriculture,however GDP in agriculture isincreasing on marginal basis andproduction as a whole is more orless stable which inturn indicatesbetter realization of farm produce(considering inflation as well).Although government role isdecreasing, government with itspolicies is promoting private sectorparticipation in agriculture through


or less stable and large benefit mainly goes backto the government in the form of subsidies,clearly indicating less money left for agroinfrastructure development.

Agriculture and Employment Generation· Rural population of the country increased

from 628.9 million in 1991 to 742.6 millionin 2001. This is a net increase of 18% (Figure4)

· However, number of actual cultivatorsincreased in a lesser rate by just about 15%during the same period.

· Another notable point of concern is thedrastic increase of 43% in the totalpopulation of agricultural laborers. as perrecords, however this increase does notsuggest total availability of farm labour asmost of them are engaged in other activities(SSI units) rather then agriculture.

The number of actual cultivators is not increasingin tandem with the total rural population andincrease in the total number of agriculturallaborers—these two are major challenges to betackled towards the overall growth of the farmingsector in general and growth of the market sizeof farm implements in the country.

Editorial Team, Agriculture Today

Public Private Partnership.

Public vs. Private investment in agriculturePrivate investment in agriculture is increasing alongwith the increase in public investment. However,public sector investment has grown at a CARGR of17% during 2002-03 and 2005-06, private investmenthas only grown by CAGR of 2% between the sameperiods. This indicates that agriculture sector is stilldependent on government for investments.

Budgetary allocation in agriculture (in Rscrores)Budgetary allocation for agriculture is increasing overthe years however percent of total allocation is more


“In Focus”“In Focus”“In Focus”“In Focus”“In Focus”


Towards a thriving Indian Agriculture:

Challenges and Prospects

Dr RB Singh

Main ChallengesTouching the daily life of about

600 million people comprisingnearly 120 million farming families,agriculture continues to be the lifethread of the nation. It accountsfor about 18% of the national GDP,over 50% of the employment andover 70% of the Indian rural workforce. Thus, if agriculture fails, ev-erything else will fail.

The term “farmer” as per the Na-tional Commission on Farmers(NCF) refers to both men andwomen, and includes landless ag-ricultural labourers, sharecroppers,tenants, small marginal and sub-marginal cultivators, farmers withlarger holdings, fishers, livestockand poultry rearers, pastoralists,small plantation farmers, as well asrural and tribal families engaged ina wide variety of farming relatedoccupations such as apiculture,sericulture and vermiculture.

During the Green Revolutionera, agricultural production and pro-ductivity had more than doubledand the intensity of hunger and pov-erty halved. Since the mid-1990s,while the overall GDP growth rateof 7-9% was recorded, the agricul-tural growth hovered around 1.5-2%per annum. This resulted in the dou-bling of the income gap betweenfarmers and non-farmers from 1:3-1:6.

The decelerated agriculturalgrowth had caused furthermarginalization of rural population,widened urban-rural and inter-statedivides and created hot spots ofacute distress, indebtedness, dep-rivation and even farmers suicides.

The agrarian crisis is attributedto several factors. Continuous de-cline in investment in agriculture,neglect of the interest of farmers,deterioration in terms of trade foragriculture, predominance of mar-ginal and sub-marginal farmers,

debt crisis, and stagnating farmer’sincome, which meets hardly 80%of their needs and requirements,are some of the major underlyingfactors. Moreover, ineffective andnegligible output price interventionsin agriculturally underdeveloped re-gions have failed to stimulate in-creased productivity and produc-tion.

Public investment did not in-crease to keep pace with the needsof output growth. During the pastPlans, highest agricultural invest-ment was in irrigation, but there washardly any increase in net irrigatedarea, and cropping intensity con-tinues to be low.

Adoption of modern technologywas slow and public sector exten-sion has become obsolete. Thetechnology missions have also gen-erally not delivered. Deceleration intotal factor productivity (TFP)growth rate, increasing thirst, hun-ger (especially hidden hunger) andfailing health of our soils, and fastdepleting and degrading water re-sources (often policy-induced) aremajor concerns. Further, size offarm holdings is fast decreasing;over 60% of our operational hold-ings are less than one ha and gen-

erally uneconomical.Although the amount of credit

has tripled over the last 3 years,the number of borrowers has de-clined and bulk of the credit hasbeen cornered by large farmers. Themajority i.e., marginal and sub-marginal resource-poor farmers andother rural poor met over 80% oftheir credit needs from non-formalsources. Layers of debts and un-usual stresses had thus intensifiedspecially in rainfed areas. More-over, agricultural insurance andother insurance coverages of farm-ers have been extremely poor,whereas the vulnerability and risksboth in monsoon and the markethave accentuated.

Rural markets and other infra-structure and farmer-market linkageare extremely poor. About 80% of


the marketing costs are avoidable.Further, about 30% of produce iswasted and value addition in agri-cultural commodities is less than10%. Moreover, neglect of quality,bio-safety, IPR, SPS, TRIPS andother regulatory arrangements andunlevelled playing fields in the postWTO regime are big hurdles.

To sum up, despite the GreenRevolution and good agriculturalprogress made during the past fourdecades, agrarian crisis continues.Technology fatigue, glaring technol-ogy transfer gaps, extension fail-ures, huge post harvest losses (es-timated US$ 15 billion annually),declining net agricultural trade in-tensity and food self-sufficiency,

worsening cost-risk-return structureof farming and rising farmers’ in-debtedness dot the agrarian land-scape.

Converting Intention into Ac-tions and Outcomes

The Union Budget 2009-10seeks to achieve accelerated andinclusive growth and equitable de-velopment. It aims attaining agricul-tural growth rate of 4% annum, en-hancing employment security (cre-ating 12 million new work opportu-nities per year), halving the povertypercentage by 2014, enhancing therange and reach of social safetynets and establishing and strength-ening social schemes, such as

National FoodSecurity Act,Bharat Nirman,National RuralHealth Missionand NationalRural LivelihoodMission.

More di-rectly for Agri-culture and Ru-ral Develop-ment, agricul-ture credit flow for the year 2009-10 is targeted at Rs.3,25,000 croreat the interest rate of 7%, with asubvention of 1% for this year forthose repaying their short termloans on schedule. The proposed

credit flow is quite substantial, butits distribution should not be lop-sided and the truly needy farmersshould not be left out. Further, asrecommended by the NCF, the in-terest rate should be reduced to 4%and even to 0% in the event of na-tional disasters such as droughtsand floods.

The one-time bank loan waiverof about Rs.71,000 crore in 2008had mostly helped the loan-provid-ing banks in recovering their “baddebts”. The other major beneficia-ries were large farmers who hadcornered bulk of the credit funds.In principle, loan waiving under ex-treme conditions is welcomed, butit must benefit the truly distressed

and helpless ones. An AgricultureRisk Fund, as suggested by theNCF, should be instituted to insu-late farmers from recurrentdroughts and floods, and also toavoid ad hocism in distribution ofrelief funds. Simple and reliable(such as based on weather) proce-dures should be adopted for farmfamily and farming insurance (in-cluding health).

The increased allocations underAccelerated Irrigation BenefitProgramme and nutrient based fer-tilizer pricing and subsidy regimesto enhance balanced usage of fer-tilizers are steps in the right direc-tion. The budget allocationsshould be made or partly divertedalso for enriching the knowledgebase and software components toenhance use-efficiency of these in-puts. Clear cut and simple guide-lines must be formulated and madewidely known for implementing thenutrient-based fertilizer pricing andsubsidy policy.

Research, technology transferand extension supports are essen-tial for increasing science-led judi-cious and efficient use of the vitalinputs as well as for mainstreamingmarginal and sub-marginal farmersin agrarian development. It is rathersurprising that agricultural researchand technology transfer have notbeen provided with even a tokenincrease in the 2009-2010 budget-ary allocation, despite the fact thatinternal rate of return on investmentin agricultural research is one of thehighest.

NREGA is a landmark develop-ment for increasing inclusivenessthrough the congruence of Right to


Employment, Right to Food andRight to Information. The useful-ness of the Scheme could bebroadened by promoting skill en-hancement and skill-based employ-ment. Further, congruence amonganalogous schemes should be ef-fected to minimise wasteful dupli-cations and to maximize synergis-tic outcomes.

India has the largest bulge ofyouth and unemployed youth.Measures should be introducedwhich could help attract and retainyouths in farming by making itintellectually stimulating andeconomically rewarding and byconferring the power and economyof scale to small and marginalfarmers both in production andpost-harvest phases of farming.Each agricultural graduate shouldbe an entrepreneur and associatedpublic-private sector support suchas creation of agriclinics, e-chaupals and revamping of theSmall Farmers AgribusinessConsortium should be assured.

Policy Thrusts� Overcome unacceptably high

levels of hunger and povertythrough sustaining and accel-erating growth in agriculturalproductivity, raising to at least2.5% annual growth rate infoodgrains, especially pulsesand oilseeds, and 6% each inlivestock, horticulture and fish-eries – the ‘sunrise’ sub-sec-tors, and these will add up tothe cherished overall agricul-tural growth rate of about 4%;

� Reduce the productivity gapbetween marginal and favouredareas; increase average yieldsby 50% in rainfed areas andabout 35% in irrigated areasduring the next 10 years;

� Bridge huge yield gaps of 50-200% by overcoming the tech-nology fatigue, collapse of ex-tension services and timelysupply of adequate quantity ofquality inputs,

� Prevent the colossal post-har-vest losses by developing coldchains and warehouse facili-

ties, efficient retail systems tolink farmers directly with mar-kets and strengthening valueaddition along the farm to forkchain.

� Develop and introduce inte-grated Flood Code, DroughtCode and Good Weather Codefor mitigating and managing ab-errant weather and climatechanges.

Inclusiveness andmainstreaming of the human andgender dimensions should be as-sured in all farm policies andprogrammes and given explicit at-tention to sustainable rural liveli-hoods. Productivity, profitability andincome of the overwhelmingly largeproportion of small, marginal, sub-marginal and landless farmersshould be enhanced through devel-oping, transferring and providingappropriate technologies, inputsand services and improving inputuse efficiency.

Science and technology mustalways be recognised as the driv-ers of modern agriculture. Public-private investment in agricultural re-search and technology develop-ment should be drastically en-hanced. Strategic research for de-veloping cutting edge technologies,like biotechnologies, and their bio-secure use is the need of the day.Agricultural curricula should be re-structured for enabling every farmand home science graduate to be-come an entrepreneur and to make

agricultural education gender sen-sitive.

The unfinished agenda in landreforms should be completed andpromotion of renewable energyshould be initiated. Diversion of pro-ductive agricultural lands to non-ag-ricultural uses should be stopped.Water should be declared a com-mon property. Concealed tenancyshould be eliminated and land-leas-ing acts and contract-farming pro-visions should be rendered trans-parent and farmer friendly. Waste/degraded lands should be reclaimedand distributed to landless farmersand allocated for non-agriculturaluses. Support of industries andprivate sector should be sought indeveloping such lands and ensur-ing mutual reinforcement of agricul-ture, energy and industry in thenational interest.

A National Land and Water UseAdvisory Service should be estab-lished and linked to State and BlockLevel Land and Water Use AdvisoryServices on a hub and spokesmodel. These can be virtualorganisations with the capacity tolink land and water use decisionswith ecological, meteorological andmarketing factors on a location andseason specific basis. They shouldprovide proactive advice to farmerson land and water use.

Protection and improvement ofland, water, bio-diversity and cli-mate resources is essential for sus-tained advances in the productiv-


ity, profitability and stability of ma-jor farming systems. A Seeds andBreeds National Mission should beinitiated under which could be es-tablished national livestock heritagebanks, genome clubs and geneticliteracy, biovalleys and gene sanc-tuaries. Traditional knowledgeshould be linked with modern knowl-edge and traditional wisdom shouldbe conserved and the conservingcommunities, particularly tribalpopulations, should be duly re-warded. Indigenous medicinal andaromatic plants, botanicals, andbiofuel species should be judi-ciously harnessed and special poli-cies for management of ExclusiveEconomic Zones (EEZs) and inte-grated development of coastalzones, hills and mountains and themajor river basins should be devel-oped and implemented.

Repeated outbreaks of SwineFever and Avian Flu and the dangerof new races of wheat rust, suchas UG99, are serious threats tofood and health security. Strength-ening the bio-security of crops,farm animals, fish and forest treesfor safeguarding both the work andincome security of farmer familiesand the health and trade securityof the nation can hardly be overem-phasized. IPR, SPS and otherbiosecurity and regulatory mea-sures must be augmented. A com-prehensive National Agricultural

Biosecurity Systemought to be established.

Every cloud has a sil-ver lining. Even the cur-rently experienced highfood prices offer an op-portunity. In the long run,high food prices repre-sent an opportunity foragriculture (includingsmall holder farmers)throughout the develop-ing world, but it will have to be ac-companied by the provision of es-sential public goods. Smallholdergains could fuel broader economicand rural development. Farminghouseholds can seek immediategains; other rural households maybenefit in the longer run if higherprices turn into opportunities forincreasing output and creatingemployment.

In order to benefit both the farm-ers and the consumers, price pro-tection mechanisms as well aspublic distribution systems (PDS)would need to be strengthened. AMarket Price Stabilization Fundshould be established jointly byCentral and State Governmentsand financial institutions to protectfarmers during periods of violentfluctuations in prices.

The scope of the MSPprogramme should be expanded tocover all crops of importance to foodand income security for small farm-

ers. Also, advice to farmers on cropdiversification should be linked tothe assurance of MSP. Small farmfamilies should not be exposed toadministrative and academic ex-periments and gambles in the mar-ket. Further, in order to buttressfarmers as well as consumers fromthe negative impacts of WTO Agree-ments as well as from the outdateddomestic market acts and provi-sions, as suggested by the NCF,an Indian Trade Organisation shouldbe created and allowed to functionprofessionally and transparently.

The Food Security Act is a wel-comed move and should be en-acted soon. A well-defined, pro-farmer and pro-resource poor con-sumer Food Security Policy is anurgent necessity. A multi-stake-holder National Food Security andSovereignty Board should be set-up. It should be chaired preferablyby the Prime Minister with its mem-bership including the Minister forAgriculture and Food and other con-cerned Ministers of GoI, the DeputyChairman of the Planning Commis-sion as well as a few Chief Minis-ters of food surplus and food deficitStates, leaders of all national po-litical parties, a few experts includ-ing specialists in the gender dimen-sion of agriculture and food secu-rity, and mass media representa-tives.

Finally, we must recognise thatagriculture can not wait. The hun-gry child can not be named “Tomor-row”. His/her name is “Today”. Wemust act now and at this moment.

Ex-Member, National Commission onFarmers


Horticulture: The Next in Agriculture

Fig1: Area, Production and Productivity of Horticultural Crops

Dr KL Chadha

India grows a wide variety ofhorticultural crops namely fruits;vegetables, potato, tropical tubercrops and mushrooms; ornamentalcrops; medicinal and aromaticplants, spices and plantation cropslike coconut, cashew, cocoa, tea,coffee and rubber. Recently, thepromotion of bamboo and honeybees has also been added to thisgroup. Government of India has laidmajor emphasis on horticulture frommid eighties onwards as a means ofdiversification for making agriculturemore profitable through efficient landuse, optimum utilization of naturalresources (soil, waterand environment) andcreating skilledemployment for ruralmasses, especiallywomen folk and theseefforts have beenrewarding. India has nowemerged as the largestproducer of mango,banana, coconut,arecanut, cashew, ginger,turmeric, black pepperand the second largestproducer of fruits,vegetables and tea.Among the new crops,kiwi, olive, gherkins,Kinnows and oil palmhave been successfullyintroduced for commercialcultivation in the country.

The production base ofhorticultural crops has beenexpanding since independence.

From the eighth plan onwards, thissector has witnessed tremendousgrowth in area, production andproductivity. The area and productionunder horticultural crops were 13.43million ha and 97.83 million tonnesrespectively during 1991-92, andincreased to 19.33 Million ha and185.86 million tonnes during 2005-06 (Fig 1). The increase in area,production and productivity was to thetune of 56.92, 91.86 and 28.0 per centrespectively between 1991-92 and2005-06 (Fig 2). Changes in fruits,vegetables, flowers, spices andplantation crops during the above

period has also been substantial,which is 105.2, 86.3,89.6,168.8 and50.2 per cent respectively (Fig 3).

The area under horticultural crops

has been increasing in variousstates. During 2003-04 coverage of

area under various horticulturalcrops was about 19.30 millionha (Table 1.2) which is approx10.0 per cent of the total croppedarea.

The share of state output indifferent horticulturalcommodities has beenincreasing. Among the differentstates, West Bengal contributesthe maximum (14.09) share ofstate output in horticulture.Maharashtra ranks 2nd followedby Karnataka, Kerala and AndhraPradesh.

China is presently theworld’s largest fruit andvegetable producer, with a shareof 34 percent, followed by Indiawith a share of 10 percent. Amodest change in world’s area,

production and productivity of fruitsand vegetables is seen during India’sIII Plan to X plan period i.e. 99 percent in area, 163 per cent inproduction and 32 per cent inproductivity. China has recorded 1348percent change in area, 2274 per centin production and 64 per cent inproductivity of fruits. This change wascompared to 144, 199 and 22 per centrespectively for area, production andproductivity in India.

In fruits, India occupies first placein production of mango, banana,pomegranate, sapota and aonla. Theproductivity of grapes is highest in theworld. India has higher nationalaverage productivity in banana andsapota compared to world average


S. State/UTs % Area under % Share of Percent share inNo. Horticulture* State output in agriculture output

horticulture at 1999-2000 price

1 Andhra Pradesh 11.41 7.50(5) 29.372 Arunachal Pradesh 40.15 0.17 49.073 Assam 14.34 3.67 55.654 Bihar 19.63 5.49 48.965 Chhattisgarh 2.75 2.01 33.836 Goa 70.85 0.31 63.937 Gujarat 8.57 4.96 22.368 Haryana 6.50 1.50 12.629 Himachal Pradesh 44.85 1.83 65.4410 Jammu & Kashmir 34.13 1.46 53.6511 Jharkhand 4.73 1.53 51.3312 Karnataka 12.73 9.48(3) 42.7013 Kerala 73.33 9.09(4) 74.1515 Madhya Pradesh 4.61 2.27 13.8615 Maharashtra 10.23 12.41(2) 30.5416 Manipur 57.21 0.29 48.5517 Meghalaya 31.25 0.31 66.1818 Mizoram 18.00 0.07 39.0919 Nagaland 7.20 0.17 35.8620 Orissa 20.91 4.58 45.2521 Punjab 4.85 1.42 7.8622 Rajasthan 14.80 1.43 8.0123 Sikkim 58.80 0.29 80.8124 Tamil Nadu 16.86 4.97 38.0425 Tripura 28.47 0.71 59.3326 Uttarakhand 15.20 0.88 40.1427 Uttar Pradesh 6.41 6.79(6) 15.7828 West Bengal 25.89 14.09(1) 50.9629 Andaman & Nicobar 100.00 0.06 56.5030 Chandigarh 10.00 0.00 50.3931 Dadar & Nagar Haveli 9.17 0.01 17.4232 Daman & Diu 12.50 0.00 9.0033 Delhi 83.32 0.20 71.0034 Lakshadweep 100.00 0.00 5.3035 Pondicherry 31.24 0.04 35.7136 National 13.08 100.0 31.25

Table 1: State share of area, output in horticulture and share in agricultural GDPduring 2005-06

* Data for 2003-04

Fig 2: Changes in area production and productivityin horticultural crops between 1991-92 and 2005-06

Fig 3: Changes in production of fruits, vegetables, flow-ers (from 1996-97), spices and plantation crops over 1991-92 to 2005-06

productivity. In vegetables,India is the largest producerof okra, second largestproducer of brinjal,c a b b a g e ,cauliflower, pea,onion andtomato and thirdl a r g e s tproducer ofpotato in theworld. India isthe largestp r o d u c e r ,consumer andexporter ofspices andspice productsin the world and

produces more than 50spices. Chilli is the majorspice crop occupying about29% of area under cultivationand contributing about 34%of total spices production inthe country. Turmericaccounts for 14% ofproduction and 6 % of area,while garlic accounts for 19%of production and 5% of area.Seed spices contribute 17%of production and occupy 41%of area while black peppercontributes 2 % of productionand occupies 9 % of area ofthe total spices in the country.

As per FAO statisticsIndia’s productivity is ranked64th in case of fruits while109th in case of vegetables.In flowers, West Bengalleads with a production of8,963 lakh cut flowersfollowed by Karnataka with4,134 lakh. Tamil Nadu is theleading producer of looseflowers closely followed byKarnataka both in terms ofarea and production. India isa home for many medicinalplants/spices having anestimated area of 2,72,150 haunder important medicinalplants.

India accounts for 22.34%of the world’s coconutproduction and is one of themajor players in the globalcoconut trade. In Cashew,India is the largest producer,processor, consumer and

exporter. India’s share in the worldraw nut production accounts to about25%. It is a leading producer of arecanut and accounts for 56 and 58% of


Rank Fruits Vegetables

Country Productivity Country Productivity( kg/ha) ( kg/ha)

1 Belgium 32961.5 Iceland 64796.612 Guatemala 30656.7 United Arab Emirates 58773.813 Netherlands 30634.1 Kuwait 49446.374 Costa Rica 27382.9 Netherlands 44453.645 Japan 23984.5 Ireland 41002.546 USA 23535.1 Austria 38051.82

Table 2: Top 5 countries in fruits and vegetable productivity in the world duringthe year 2006

Source: FAOSTAT, 2008

Fig. 4. Growth trends in horticulture sector

Period All Fruits and All Cereals Pulses and Livestock Fisheryhorticultural Vegetables Crops Oilseedscrops*

1951–52 to1967–68 2.65 2.67 3 4.19 2.98 1.02 4.68

1968–69 to1980–81 4.16 4.82 3 3.43 0.97 3.26 3.08

1981–82 to1990–91 2.54 2.84 2.97 3.52 5.41 4.78 5.74

1991–92 to1996–97 5.99 6.07 3.09 2.36 2.92 4.00 7.05

Ninth Plan1997–98 to2001–02 4.04 4.11 2.25 1.49 –1.43 3.53 2.63

Tenth Plan2002–03 to2006–07 2.99 2.97 2.46 1.28 4.29 3.69 3.23

of which2002–03 to2004–05 1.17 0.30 0.42 –1.27 5.95 3.32 1.77

2005–06 to2006–07 4.10 6.97 5.53 3.52 1.61 4.23 5.49

Table 3: Growth Rate in Output of Various Sub-sectors of Agriculture (Gross Value of Output at 1999-2000 price)

Source: New Series of National Accounts Statistics, Central Statistical Organization, Ministry ofStatistics and Programme Implementation, New Delhi.; cited from planning commission document11th plan and *compounded annual growth rate, Author's calculations

the total area and production in theworld. Arecanut industry forms theeconomic backbone of nearly 10million people of India and for many ofthem it is their sole meansof livelihood. The countryproduces areca nut valuedat Rs. 3,000 croresannually.

India is the secondlargest producer and thelargest consumer of tea inthe world with 19 % sharein area and 27% share inproduction. Indiaconsumes about 23.5% oftotal world consumption oftea, which constitutes about81% of the tea produced inthe country.

Coffee covers an areaof 3.80 lakh ha in its tradi-tional coffee tract confinedto the states of Karnataka,Kerala and Tamil Nadu.However our productivitycompared to Vietnam (inRobusta) and Brazil (inArabica) is less.

GROWTH TRENDThe growth trends of

area production and productivity ofhorticultural crops during the past

three plans are given in the Fig. 2.The increase in area which was 2.3and 2.43% during the VIII and IX Plansignificantly went up to 6.6% in the X

Plan. Since a major part of the areaunder most perennial crops takes 5-

6 years to come tobearing and an equalnumber of years toattain peak bearing, thearea expansion is yet tosuitably make adifference in either totalproduction orproductivity per unitarea (Fig 1).Growth of agriculturalGDP decelerated fromover 3.5% per year

during 1981–82 and 1996–97 toonly around 2% during 1997–98and 2004–05. This deceleration,although most marked in rainfedareas occurred in almost allStates and covered almost allmajor sub-sectors, includingthose such as horticulture,livestock, and fisheries, wheregrowth was expected to be high.As a result growth of agriculturalGDP has been well below thetarget of 4% set in both the Ninthand Tenth Plans. Among the

growth rate in output of various sub-sectors of agriculture, fruits andvegetables have been superior ascompared to other sub-sectors overdifferent periods indicated in the

Table 3.

R&D INVESTMENTSThe past efforts in the

investments in this sector have beenrewarding and India is fast emergingas a horticultural force to be reckonedas a leader within the global arena.Starting with a meager financialallocation of Rs. 2.05 crores forhorticulture development in the IVPlan, the Plan allocation rose toRs.7.62 crores in V, Rs. 14.64 croresin VI, Rs. 25.0 crores in VII, Rs.1000.00 crores in VIII (utilizationRs.789.0 crore) and Rs.1453.06


Fig. 5. Budget allocation for horticulture development in India (V- X Plan)

crores in IX Plan Total budgetaryallocation for the development ofhorticulture and plantation sector inthe country during X Plan period wasRs. 5,650 crores; of this an allocationof Rs. 4,472 crores was made toMinistry of Agriculture which wasnearly three times the allocation ofRs. 1,453 crores during IX Plan. Inaddition Rs. 1,178 crore wasallocated to the different commodityBoards under the Ministry ofCommerce dealing with Tea, Coffee,Rubber and Spices. Similarly forresearch, the investment by the ICARin the central sector has increasedsignificantly during plans. The planallocation for horticultural cropsstarted in IV Plan (1969-74) with amodest allocation of Rs. 3.48 croresand was enhanced to Rs. 31.96crores in the VII Plan (1985-90),Rs.104.7 crores in the VIII Plan (1992-97), and Rs 213.0 crores in the IXplan (1997-2002) and to Rs408.0crores in X Plan (2002-2007).

While the increase in thebudgetary allocations from IV to XPlan was 117 times for research, itwas 5800 times in respect of thedevelopment programmes. Atpresent the horticultural cropsprogrammes form around 30 per centof the total outlay of agriculturedevelopment of the Department ofAgriculture & Cooperation besidesallocation to the Ministry of Commerceand allocation for research is about7.6 per cent of the total outlay foragricultural research made by theICAR. There has been a quantumjump in the allocations for thehorticulture sector during the XI FiveYear Plan which is Rs 14966 croresand has a share of 27.31 per cent inagriculture.

RESEARCH ANDD E V E L O P M E N TINFRASTRUCTURE

India has a stronginstitutional support forR & D programmes inH o r t i c u l t u r e .Horticulture research inIndia received a boostwith the establishmentof the Indian Institute ofHorticultural Researchat Bangalore andstarting of eight All India

Coordinated Crop ImprovementProjects to cover different horticulturalcrops in 4th five year Plan (1969-74).Rapid expansion of infrastructuretook place in 7th and 8th Plans. Today,India has dedicated researchinfrastructure by way of 10 CentralInstitutes with 27 regional stations,12 crop specific National ResearchCentres, 9 Multi-disciplinaryInstitutes, 13 All India CoordinatedResearch Projects with 223 centres.Two full fledged State Universities onHorticulture (each in HimachalPardesh and Andhra Pradesh), 28State Agricultural Universities and 15central/ general/deemed to beuniversities with Horticulturediscipline, 5 network projects, 29Revolving fund schemes which dealwith research on different horticulturalcrops. Besides the above a largenumber of CSIR laboratories andCentres aided by Departments ofBiotechnology (DBT), Bhabha Atomic

Research Centre (BARC) and IndianSpace Research Organization (ISRO)are also undertaking basic andstrategic research on horticulturalcrops. The Ministry of Commerce hasestablished one Research Instituteeach for Coffee, Rubber and Spicesand two for Tea which work ondifferent aspects of these commoditycrops.

The Department of Agricultureand Cooperation (DAC) in the Ministryof Agriculture, the nodal departmentfor horticulture development in thecountry has two directorates each onCashew nut and Cocoa; and Arecanutand Spices located at Cochin andCalicut (Kerala) besides threeautonomous boards, NationalHorticulture Board, Coconut Boardand Bee Board. In addition, ICAR with557 Krishi Vigyan Kendras, theMinistry of Commerce through theCommodity Boards -Spices Board,Tea Board, Coffee Board and RubberBoard, respectively promotedevelopment in horticulture sector.Agriculture and Processed FoodProducts Export DevelopmentAuthority (APEDA) under the aegis ofthe Commerce Ministry promotesexport of horticultural commoditiesboth fresh as well as in processedform. Indirect organizational supportfor horticulture development is alsobeing provided by two agencies in theMinistry of Agriculture namely NationalCooperative DevelopmentCorporation (NCDC) and National


Commodities 1995-96 2005-06 2011-12Value (Rs Value (Rs % Increase Projected Valuein Crores) in Crores) over 1995-96 (Rs in Crores)

Fruit & Veg Seeds 43.08 92.87 115.58 149.57Floriculture 60.14 301.44 401.23 485.47Fresh Fruits 229.93 1120.68 387.40 1804.87Fresh Vegetables 301.19 919.8 205.39 1481.35Processed Fruits & Veg. 491.57 1093.24 122.40 1760.67Coconut & its products 211.56 552.09 160.96 889.15Arecanut 3.6 9.46 162.78 15.24Cocoa 8.86 24.8 179.91 39.94Cashew 1240.5 2593.35 109.06 4176.62Spices 804.44 2115.92 163.03 3407.71Tea 1244.52 1730.7 39.07 2787.31Rubber 278.44 274.51 -1.41 442.1Coffee 1527.16 1588.66 4.03 2558.55

Total 6444.99 12417.52 92.67 19998.54

Table 5: Status of Indian horticulture exports

Agricultural Cooperative MarketingFederation (NAFED) and its instituteNational Horticultural Research andDevelopment Foundation (NHRDF).Besides almost each state has aseparate department of Horticultureto promote the scheme of central andstate governments.

PROGRAMMES FOR HORTICUTUREDEVELOPMENT

Five new developmentprogrammes were launched duringthe Xth Plan to achieve overalldevelopment in horticulture namely,technology mission for integrateddevelopment of horticulture in thenorth east region & Himalayan states,national horticulture mission, nationalbamboo mission, micro-irrigationmission and Central Institute ofHorticulture. These programmestogether have invested Rs 2400crores during X Plan. Theseprogrammes have been continuingduring XI Plan with budgetary supportof Rs 14,134 crores.

HRD IN HORTICULTURENearly one fifth (21.6 per cent) of

the total strength of agriculturalscientists are working on horticulturecrops, which amounted to a total of3575 scientists as per a censusduring 2001-02. Public sectorcontributes the majority of researchscientists, which is about 91 per cent.Indian Council of agriculturalResearch contributes about 26 percent, while SAUs contribute about 65per cent and the remaining 8.5 percent are in the private sector. Two fullfledged state horticultural universities

and 16 new colleges of Horticulturein different state agriculturaluniversities are opened in recentyears to generate technologies andimpart education to create trainedmanpower for horticulturedevelopment of the country. Similarlythere has been spurt in horticultureliterature both for R & D workers andgrowers.

HORTICULTURE EXPORTSIndia is exporting fresh fruits,

vegetables, processed products offruits and vegetables, cut & driedflowers, medicinal and aromaticplants, seeds, spices, cashewkernels and their products, tea andcoffee. The total value of export ofthese commodities increased fromRs.29723 million in 1991-92 to64,450 in 2001-02 to 124175 millionin 2005-06. Horticulture produce andproducts accounted for about 35 percent of the total value of exports ofagricultural commodities from Indiaduring 2005-06. Of these, export ofcashew leads all horticulturalcommodities followed by spices, teaand coffee. During past one decadethe maximum increase in exportswas observed for floriculture (Table).

Horticultural ImportsThe import value of all horticulture

products in 2003 was of the order ofUS$ 1.06 billion. There has beenabout a three fold increase in theimport value in the last one decadewhich is attributed mainly to thephasing out of quantitativerestrictions. Starting in the secondhalf of the 1990s imports of fresh

fruits, especially apples,have risen considerably bymore than 245% per annum(1997-2003).

Growth has also beenrapid for certain processedfood products like apple juiceand dried vegetables,though the single mostdominant item in thiscategory continues to bedried peas. The trade hasreported that about 1,000containers of apples wereimported for Diwali gifts in2006. To protect H.P. applefrom competition fromChinese apple, it may berelevant to declare apple as

a special product and fix quota for itsimport. However, import penetrationremains insignificant in terms of theshare in total consumption. For freshfruits, it is less than 0.1% of domesticproduction, and is also negligible formost fresh vegetables. However, theapples and other fruits which arebeing imported in India need to betest checked to ensure that they arefree from pests and diseases anddo not pose any threat to the domesticsystems of production.

Import of some commodities isadversely affecting the domesticmarket. For instance uncheckedimport and rampant adulteration ofsaffron from Iran is pushing prizedsaffron production in Jammu andKashmir to the verge of extinction.

RESEARCH ACHIEVEMENTSA lot of research achievements havebeen made in horticultural duringrecent past. As a result, thehorticulture scenario of the countryhas been changing from a producerto a global leader. Majorachievements made in differenthorticultural crops/crop groups duringthe past two decades are given below.

i. Crop ImprovementsSeveral new crops have beenintroduced for commercial cultivation,eg. Kiwi fruit in sub-mountain areasof North India, Olive in mid hills ofNorth Western Himalayas, Lowchilling stone fruits in the NorthWestern plains and others. Over 50varieties in different fruit cropsincluding Pusa Arunima, Ambika,


Sindhu in mango; Udhayam inbanana, Rubi and Arakta inpomegranate Surya in papaya, GomaKirti in ber etc have been developed.In ornamental plants, presently, 57varieties of rose, 35 ofchrysanthemum, 42 of gladiolus, 150of bougainvillea, 25 of hibiscus and2 of orchids are available forcommercial adoption.

ii. BiotechnologyThe last two decades one haswitnessed unprecedentedtechnological advances in biologicalsciences/the techniques of planttissue culture, recombinant DNAtechnology and DNA based markers.Over 1,500 germplasm accessionsand being maintained andexchanged from in vitro repositoryand transgenic crops likepotato have been developed.

iii. Propagation of PlantingMaterialThere has been a substantialimprovement in vegetativepropagation techniques of fruitand plantation crops and seedproduction technologies invegetables and flowers crops.

iv. Micro propagationMicropropagation has beenstandardized and it has alsobeen commercialized in fewcrops. In vitro propagationprotocols available for different MAPslike Rauvolfia serpentina(Sarpgandha), Dioscorea floribundaand several others.

v. Improved ProductionTechnologiesSome of the key technologiesdeveloped for commercial adoptionare listed hereunder viz, High densityplanting systems standardized inmango, banana, Kinnow, pineappleand papaya for higher productivity &profitability. Rejuvenation techniquefor old and senile plantations inmango and cashew standardizedand being adopted. Drip irrigation/fertigation in banana, grape, papaya,pomegranate, mandarin, coconut,areca nut and cashew standardizedfor saving water and fertilizer by 30 to40 % with increases in yield and fruitquality.

vi. Plant ProtectionPlant protection schedulesestablished for all commerciallycultivated horticultural crops.Biological control methodsstandardized for control of mealy bugin grape, scale insects in citrus,rhinoceros beetle and leaf eatingcaterpillar in coconut. Integrated PestManagement (IPM) strategies incrops like cabbage (diamond backmoth), tomato (fruit borer), potato(bacterial forecasting and tuber moth)standardized. Apple scale and potatolate blight forecasting systems havebeen developed. Twenty four IPMpackages including those for fruits,plantation and spice crops have alsobeen developed for farmers.Improved disease detectiontechniques such as ELISA and ISEM

for different horticultural crops havebeen developed.

vii. Post Harvest ManagementStandardization of pre- and post-harvest chemical treatments tocontrol post harvest diseases incitrus, mango and banana for longdistance transport and storage.Semi-processed products liketomato puree, ginger, garlic and chillipastes are now available in supermarkets.

CONCLUSIONHorticulture development in thecountry was taken seriously in 80’swith a realization that diversificationto horticulture crops is the majoroption to improve livelihood securityof small farmers, improvedemployment opportunities, to attainfood and nutrition security, improveincome through value addition and

foreign exchange through exports.Different programmes have been inoperation and significantdevelopments in produce/productsand exports have taken place.Budgetary and institution allocationhave increased considerably over thetime. Both production and productivityof several crops has increasedmanifold. Many new crops have beenintroduced many others haveadapted to non conventional areas.Export of fresh as well as processedfruits has been increasing. Thedemand of horticulture produce is onthe rise due to increasing population,changing food habits, realisation ofhigh nutritional value of horticulturalcrops and greater emphasis on valueaddition and export. There are stillseveral challenges to strengthen the

horticulture research anddevelopment of the country. Inorder to meet the challengesahead major emphasis hasbeen suggested to be laid onprioritization of researchobjectives, ensuringavailability of quantity andquality of the plant material,priority crops to meet the futureneeds, protected cultivation toimprove the productivity levels,organic farming for capitalizingthe niche markets,mechanization to bringefficiency and competence,post harvest infrastructure to

match the mammoth expansion,value addition to venture into newproducts, transfer of technology tomake the extension system moreaccountable, radical reforms indatabase management, venturing into new opportunities like GMO’s,Pharmaceutical and nutraceuticalcompounds, branding of Indianhorticulture produce etc. Horticulturalcrops has bridge the yield gaps andhas brought prosperity even in aridand semi arid areas. Horticulture isno longer a leisurely avocation andis fast assuming position of a vibrantcommercial venture. India has nowemerged as an important country inthe world horticulture. With a lot ofdevelopment in recent past,horticulture status in India is nowready to be reckoned as GOLDENREVOLUTION.

Ex DDG, Horticulture, ICAR


IntroductionDeclining farm sector

performance – in addition to itsdeleterious economic ramifications-causes large scale rural distresswhich often ends up in farmersuicides. This distress conveysmuch on the economic rationaleruling the agri and rural domains forits incompatibility in the changingenvironments. Given the structurallag and the system complexities,many feel that commercializedagriculture with adequate levels oftechnological, credit and marketinginterventions requires the inductionof value added agri-businesses withproper risk cover. Farmers perceiverisks differently given the farmambience and the modes andrelations of production works in thespatial unit. In reality, the major riskthat Indian farmer faces areemanating from internal variables.This includes non-availability ofquality seed, supply constrains offertilizers and pesticides and lack ofextension services. The exploitationat the farm level is a major risk forIndian farmers to tackle with. Thisworks as a major hurdle for agri-businesses to operate on competitivegrounds. Hence, one needs to lookat a matrix (scenarios) which will helpfarmers as well as agri-businessesto determine the adoption levels.The scenarios should be able toguide the farmers as well asbusinesses to determine the cropoptions as well as value additionstrategies from a market perspective.This also will work as means to avertthe external uncertainties like market.

Value chains and demand drivenagriculture

Rapid growth in the agricultural

Sustainable Agri-BusinessesMarket Imperatives in the Value Chains

Dr CS Sundaresan

sector can come through the creationof growth engines in ruralbusinesses / agri-enterprises (ValueChains). It has to foster aroundnewer agricultural practices forproduction and the establishment ofprocessing (Value addition) centersfacilitating a shift of farm dependentpeople to allied areas, therebycreating employment and income.Another important interven-tionimperative in this context has beenthe diversification into high-value

crops and value addition to bothtraditional and diversified agricultureproduces. Value addition can bringabout dramatic improvements in theagricultural value chains and resultin higher incomes at different pointsof the rural economy. The major valuechains in the vertical and horizontaldomains for enhancedcompetitiveness of the agricultureand businesses are as follows.

A.VerticalFood processing, Fruits &

Vegetables, Floriculture, Dairy,Poultry, Fisheries, Meat, Bio-Fuelsand Plantation crops

Farm Risk scenarios

Low Investment – Low risk High Investment – Law riskLow Investment – High risk High Investment – High risk

Source: FY Plan Documents, Government of India, Various plans

Chart 1. Declining Plan Allocation for Agriculture sector


B. Horizontal (Cutting across all value chains)Policy rationalization, Market linkages, Investment

promotion, Financing and risk Management, Internationallinkages, Production productivity and Inputs

Why are these value chains not taken off? One of themain reasons in this context has been the food securityconcerns. The dilemma currently therefore is that whetherit is really worthwhile to hold the farm sector for foodsecurity? The inward looking paradigm claims thatagriculture essentially caters to the food security andhence, supply side approach to agriculture is rationalfrom the point of view of conventional management. Froman overall national economy perspective, the progressivethought school observes the potential of the sector forenhanced growth, if a paradigm shift is brought in theoperational spheres.

Having said the above, what should be the ideal policythat will balance the food/livelihood security and cropdiversification, which can foster an ambience for valueadding agri-businesses in India? It is desirable in thiscontext to understand the current policy roadblocks forcrop diversification and agri-businesses. Despite sizablegrowth in areas under commercial crops includingvegetables and fruits since early 50s, its’ momentumcould not be established for any agri businesses todepend for the raw materials. However, this sector hasgained momentum in the last decade in terms ofincreased area and production. The major segments inthis growth engines are vegetables, fruits and also tosome extent commercial crops like sugar cane, cottonand oilseeds- especially soybean. There are however,constraints identified in its faster expansion viz; (a)Fragmented land holding (b). Inadequate post-harvestagri market infrastructure and market mechanisms (c)Weak research - extension - farmer linkages (d) Decliningpublic investments (capital formation) in the sector and(e) the lack of a vertically integrated farming systems. It isworthwhile to mention in this context that the planallocation for agriculture sector has been declining (Chart1) over the years.

It goes without saying therefore that establishment ofsystems for diversification of agriculture will enable thedevelopment in allied sectors such as Livestock, Dairy,Poultry, and Fisheries to generate additional income tothe Farmers. It will facilitate large-scale exports of highvalue basic and processed agri produce. Establishingthe agri value chains in vertical and horizontal spheresthrough effective market linkages hold the key for the farmsector growth for its contribution to the SDP/GDP. Theother set of factors that hinder farmer’s linking with themarkets are Poor Marketing Infrastructure, Supply ChainInfrastructure (Including Cold Chain Infrastructure), Lackof Agricultural Marketing Information System for Farmers,awful transportation facility and road connectivity andWeak network of modern telecom infrastructure in remoteareas.

Chart 2. Crop composition –1990-91

Chart 3. Crop Composition -2005-06

Chart 5.Commodity- export Basket 2004-05

Chart 6.Commodity-Inida's Agriculture exports since 1990

Chart 4.Commodity- export Basket 1990-91


The obvious postulate is that,interplay of market and prices canincentivise farmer better thansubsidies and therefore demanddriven farming systems would beable to balance the food requirementand value addition. Moreover, oneneed not unduly be preoccupied withcereals given the fact thatconsumption baskets of rural andurban population have beenchanging structurally. The shift inconsumption from the traditionalgrain based food to value added fooditems signals the need for fosteringa vibrant agri-business domainwithin agriculture.

NAP 2000 and the Quiet Revolutionin Agri-Business space

The National Agriculture Policyannounced in July, 2000 brought in arenewed thrust to break the inheritedinward looking approach in Indianfarm front. The new policystrategically targeted at de-linkingIndia’s agriculture from a food supplyperspective and focuses it towards amarket perspective for value addition,growth, equity and inclusiveness. Itincluded the alignment of productionand distribution systems to benefitthe farmers as well as consumersthrough the mediation of markets.The new Policy framework hence

sought to actualize the vast untappedgrowth potential of Indian agriculture- strengthening rural infrastructure tosupport faster agriculturaldevelopment, promote valueaddition, accelerate the growth of agribusinesses, create employment inrural areas, secure a fair standard ofliving for the farmers and agriculturalworkers and their families,discourage migration to urban areasand face the challenges of inequalityarising out of economic liberalizationand globalization. The new policyenvisaged to attain a growth rate inexcess of 4% per annum over the

Commodity 2007 % Growth % share ofover 2006 exports

Agriculture & allied Products 8548.36 18.42 6.77

Plantation 866.77 15.61 0.69

Marine Products 1742.27 9.63 1.38

Cereals 1692.28 3.59 1.34

Pulses 168.72 -33.02 0.13

Oil Meals 1215.19 10.36 0.96

Castor Oil 239.36 12.77 0.19

Processed Foods 1203.18 26.31 0.95

Fresh Fruits & Vegetables 638.26 38.49 0.51

Sugar & molasses 703.27 420.75 0.56

Meat and Preparations 715.41 15.17 0.57

Poultry & dairy products 176.22 -29.59 0.14

Floriculture Products 84.12 23.55 0.07

Table 1. Exports of Agriculture and other products from India 2007 ($US million)

Source: UK India Business council, 2008

next two decades. It thereforeincluded conserving soil, water andbio-diversity and recognized thatgrowth needs to be demand drivenand it should cater to domesticmarkets and maximize benefits fromexports of agricultural products in theface of the opportunities emergingfrom economic liberalization andglobalization. Ultimately, it targeted togrowth, which is sustainable -technologically, economically andenvironmentally.

India has witnessed a quietrevolution in the agriculture sectorever since the policy intervention or alittle prior to this as an overall effect ofthe economic liberalizationprograms. This revolution has beenin the spheres of crop compositionas well as the agriculture trade. Forinstance, there has been significantgrowth in the high value agriculture.The major crop segments within thehigh value space are Fruits,Vegetables, Floriculture, spices andplantation crops. There is asignificant increase in the area andproduction of fruits in India. TheVegetables sector registers highgrowth in terms of area, productionand productivity. Floriculture cropsalso register high levels of growth inarea, production and yield. Spicescrops are growing at very impressiverate of 6.98% and 7.33% in terms ofarea and production respectively.This has been driving Indian


agriculture to a demand led growthtrack with higher export potential.Consequently, the composition ofagriculture trade also has beenundergoing structural change.

It is however true that agriculturetrade is yet to claim an impressiveshare in the total merchandise of thecountry. For instance, the share ofagriculture and allied products in thetotal exports is around 6.5%. Thisperhaps is an indicator of theinadequate levels of value additionand the low global competitivenessof Indian agri-value chains. Theshare of agriculture and alliedproducts in the export basket of Indiastands at 6.77% as of 2007. Whatexplains this level of performance ofagri-sectors in the total business ofthe country perhaps is thegradualism India adopted in its farmfront, for reasons of political sensitivity.Further it is hampered by theinvestment constraints for globalstakeholders and the retailers.

With this state of affairs, thegovernment is constantly pursuingmeasures to pull up the agri-business sectors. For instance, thenew trade policy increased its focuson agro-based industries. Foodprocessing industries have been putin the list of priority sectors for banklending. Fruit and vegetableprocessing units have beencompletely exempted from paying

excise duty. Automatic approval forforeign equity up to 100% is permittedfor most of the processed food items.Items like fruits and vegetableproducts, condensed milk, icecream, meat production etc. havebeen completely exempted fromCentral Excise Duty. Excise duty onready to eat packaged foods andinstant food mixes has been broughtdown to 8% from 16%. Excise dutyon aerated drinks has been reducedto 16% from 24%.

Investments in the agro-processing sector are looking for aboost. The ‘India Food Report 2008’,reveals that the total amount ofinvestments in the food processingsector in the pipeline for the next threeyears is about US$ 23 billion. Thegovernment has received around 40expressions of interest (EoI) for thesetting up of 10 MFPs with aninvestment of US$ 514.37 million.Adani Wilmar, the owner of Fortuneedible oil brand, is eyeingacquisitions of greenfield andbrownfield assets for sunflower, soyaand mustard oil projects. It plans toinvest close to US$ 199 million inthese projects over the coming years.Reliance Industries Ltd has investedUS$ 1.25 billion in dairy project.Britannia Industries Ltd. has signedan agreement with Fonterra Brands(Mauritius Holding) to acquireFonterra’s 49% equity and preference

shareholding in Britannia NewZealand Foods, their dairy jointventure.

ConclusionIt is generally agreed that India

possesses outstanding competitiveadvantages in agriculture comparedto others. First, it has zones, whichare climatically favorable forcultivation of every commerciallyimportant plant species. Second, itpossesses the largest acreage ofirrigated land with potential still to betapped. Third, the gap betweenpresent productivity and proventechnological potential is very largefor most crops. Fourth, the state hasskilled, educated, technical andscientific manpower. These diverseadvantages call for location-specificand crop-specific strategies toleverage the domestic and globalcompetitiveness. What is required isthe source to leverage the potentialin the sector through its value additionand market linkages.

The second phase of agriculturereforms is due in the country and thestates hold the stake in establishingthe value chains and linking those tothe markets for enhanced incomeand thereby livelihood security of thepeople. The changing consumptionpatterns in rural and urban segmentssuggest that the food basket willcontinue to diversify with the rise inthe per capita incomes. Hence thepolicy needs to be pro-cropdiversification and high valueagriculture. Agri value chains are tobe pulled up and linked to themarkets by the mediation ofprocessing industries in a risk freeenvironment as a strategic wayforward in the agri-business sectorsfor growth and sustainability.

Editor - KIIT Rural BusinessReview

School of Rural Management, KIITUniversity, Bhubaneswar


THE NATIONAL FOOD SECURITY MISSION A

MAJOR STEP FORWARDDr NB Singh1 & Dr JP Mishra2

FOOD SECURITY CONCERNSThe issue of food security has

been a serious concern in recenttimes as the global foodgrainproduction is not keeping pace withincreasing population. There isalso a horizontal and verticaldiversification of foodgrainsparticularly towards animal andpoultry feed, industrial uses andrecently towards biofuels. Thisindicates that the foodgrains will beunder enormous pressure andglobal food security will be at stakein years to come. The changingclimatic factors particularly, therainfall pattern and the temperatureregime will also have an impact onfoodgrain production and the foodsecurity.

The population of our country isprojected to attain the level of 1200million by 2011. On one hand wehave sufficient foodgrains in ourbuffer stock, on the other, over 260million people are grosslyundernourished. The production offoodgrains increased from 50.42mtin 1950-51 to the highest ever of234mt in 2008-09.

The primary forces that triggeredthis phenomenal growth aretechnological breakthrough withevolvement of input responsive andphoto and thermal insensitive newplant types of crops with strongback up of infrastructuraldevelopment for increase inirrigation coverage from 20.85mha

in 1950-51 to about 58.54mha in2004-05 and very steady growth infertilizer consumption from about0.07mt in 1951-52 to 22.04mt in2006-07 which enabled the farmersto intensify their cropping pattern.The infrastructural development intransportation, energy, marketing,and processing and value additionalso contributed directly and/or

which in terms of productionrequirement would be about 234mt,assuming seed, feed and wastageas 12.5% of the gross output. ThePlanning Commission has alsoestimated the foodgrain requirementto the tune of 236mt by 2011-12.

ICAR estimated the country’sfoodgrain requirement in 2020 atabout 256mt, comprising 112mt ofrice, 82mt of wheat, 39mt of coarsegrains and 22mt of pulses. Thedemand for edible oils will be about11mt. To achieve these levels ofproduction, the growth rate ofdomestic output should accelerateto 3.5 –to 4% p.a. from the existinglevel of 2.4%.

THE CURRENT FOODGRAINPRODUCTION SCENARIO

The area, production and yieldof foodgrains increasedprogressively up to 2001-02 barringfew abnormal years marked byacute moisture stress (drought)

Table1: Estimated demand for foodgrains and edible oils

LIG: Low income growth 3.5% per capita GDP growthHIG: High income growth 5.5% per capita GDP growthNB: Demand includes export 4.7mt rice and 3.6mt wheat

Figure 1: Area, production and yield of Foodgrains (1967-68 to 2007-08)

Dr NB Singh

indirectly for the agricultural growth.

REQUIREMENT ANDPRODUCTION PROSPECTS

The consumption requirementalone of food grains for 1200 millionpopulation likely to happen in 2011,on normative requirement at182.50kg/cu/per year, comprising167.90kg cereals and 14.6kgpulses, as recommended byNational Institute of Nutrition (NIN),Hyderabad, works out to 204.75mt


and/or heat stress. Thereafter,stagnation or decline in area andproduction and also in the yield wasrecorded due to low rainfall,intermittent long dry spells in kharifaffecting severely the rice, coarsecereals and kharif pulsesproduction ( in 2002-03 , 2004-05)and abnormally high temperature ashappened during the winter seasonof 2004-05 and 2005-06 whichaffected wheat production. However,during the last two years, theproduction of rice, wheat, pulsesand coarse cereals has increasedprimarily due to acceleration inyield.

The production of rice has alsoincreased significantly over theyears with highest ever 95.68mtestimated in 2007-08 and 99.35mtin 1998-09. The production ofwheat has also showed similartrend except in the productivitywhich has been stagnant since2000-01. The pulses production hasincreased marginally from 12.10mtin 1967-68 to 15.19 million tones in2007-08. The production of coarsecereals has increased from 28.8mtin 1967-68 to 39.67mt in 2007-08,inspite of the area reduction by18.79mha.

GROWTH TRENDS ANDEMERGING SCENARIO

The growth in yield of rice, wheatand total foodgrains was highestduring 1980-81 to 1989-90 whichdeclined during the period 1990-91to 1999-2000 and remained almostconstant during the last 8 years. Incase of wheat, the yield reducedconstantly since 1989-90.

The highest growth of 2.73% per

period. During 1990-91 to 1999-2000, the growth slowed down to2.09% in production and 2.17% inyield, while area recorded negativegrowth of -0.08% per annum. Thegrowth in production and yieldfurther dipped to 1.90% and 1.36%per annum during 2000-01 to 2007-08 though the area gainedmarginally. The highest growth inproduction and yield has beenachieved during 1980-81 to 1989-90, whereas the highest growth inarea has been achieved during2000-01 to 2007-08.

The present growth inproductivity (2000-01 to 2007-08) inrice, pulses, coarse cereals andtotal foodgrains has been around1.87, 1.63, 3.44% per annum,

Figure 4: Decadal growth in yield of cereals, pulses andFoodgrains (1967-68 to 2007-08)

State Improved Farmer Actual Gap % betweenpractice Practice 2003-04 I and F I and A(t/ha) (t/ha) (t/ha)

Rainfed (upland) Rice

Chhattisgarh 3.74 3.13 1.45 19.2 157.0

Jharkhand 2.29 1.38 1.69 66.1 35.2

Uttar Pradesh 3.62 2.48 1942 46.0 86.4

Rainfed (shallow lowland)

Assam 4.52 2.55 1.53 77.3 194.7

Chhattisgarh 3.55 2.78 1.45 27.7 144.2

Jharkhand 3.480 2.30 1.69 51.3 105.3

UP 3.65 3.43 2.18 6.5 67.2

Irrigated

hhattisgarh 3.91 3.13 1.45 24.9 169.4

Bihar 4.88 4.15 1.51 17.4 222.1

Gujarat 5.58 4.89 1.89 14.2 195.3

J&K 7.48 4.70 1.94 59.1 285.8

UP 7.05 5.20 2.18 35.6 222.4

Uttarakhand 3.85 3.20 1.94 20.3 98.2

Wheat

Uttar Pradesh 4.20 3.32 2.79 26.5 50.5

Bihar 3.65 2.90 1.78 25.7 104.8

Punjab 4.46 4.03 4.20 10.6 6.1

Haryana 4.75 4.52 3.96 5.1 19.8

Rajasthan 3.94 3.72 2.79 6.0 41.3

Gujarat 4.03 3.49 2.68 15.6 50.5

Madhya Pradesh 3.29 2.47 1.78 33.4 84.3

Maharashtra 3.41 2.90 1.33 17.3 155.5

Table3: Frontline Demonstrations yield and actual yield of riceand wheat in different States (2003-04 to 2004-05)

annum in production was recordedduring 1980-81 to 1989-90 eventhough the area declined by 0.23%per annum. This happened due toan impressive growth in yield(2.97% per annum) during the


respectively which need to bestepped up to about 3.5% by 2011-12.

PROSPECTS -EXPLOITABLEYIELD RESERVOIR

The data given shows that thereis vast gap between the realizedand realizable yield at farmers’fields. Replicating improvedtechnology at state level has vastpotential to raise yield. The yieldgaps are much higher in the stateswhich could not benefit from greenrevolution technology. Supply ofgood quality and improved seed andextension are the key to reduceyield gap and to raise productivityand production in the country.

National Food Security MissionNational Development Council in

its 53rd meeting adopted a resolutionto enhance the production of rice,wheat and pulses by 10, 8 and 2mtrespectively by 2011-12. Hence, amission mode centrally sponsoredscheme, National Food Security

Mission was launched in 2007-08with an out lay of Rs.4882.48 croresfor XI Plan Period.

The Mission aims at increasingproduction of rice, wheat and pulsesthrough a set of measures such asarea expansion, productivityenhancement in selected districts;restoring soil fertility; creating

employment opportunities; andenhancing farm level economy torestore the confidence of thefarmers of the targeted districts.

The Mission is underimplementation in 311 districts of17 States of the country. TheNFSM-Rice is implemented in 136districts of 14 States, i.e., AndhraPradesh, Assam, Bihar,Chhattisgarh, Gujarat, Jharkhand,Karnataka, Kerala, MadhyaPradesh, Maharashtra, Orissa,Uttar Pradesh, Tamil Nadu andWest Bengal. The NFSM-Wheatis being implemented in 140districts of 9 States-Bihar, WestBengal, Madhya Pradesh, Punjab,Haryana, Uttar Pradesh, Rajasthan,Maharashtra and Gujarat. TheNFSM-Pulses is beingimplemented in 170 districts in 14States i.e., Andhra Pradesh, Bihar,Chhattisgarh, Gujarat, Haryana,Karnataka, Madhya Pradesh,Maharashtra, Orissa, Punjab,Rajasthan, Uttar Pradesh, TamilNadu and West Bengal.

A close monitoring mechanismthrough a dedicated team ofexperts in the form of projectmanagement team at district, Stateand National level is in place. Theconcurrent evaluation, mid termevaluation and impact analysis hasalso been planned for effectiveimplementation and mid termcorrection in the programme forincreasing the efficiency.

The expenditure for

State Improved Farmer Actual Gap % betweenpractice practice 2003-04 I and F I and A

Maize

Bihar 3.71 2.37 56.6

Chhattisgarh 4.02 1.38 190.7

Himachal Pradesh 3.54 2.44 45.1

Jharkhand 2.60 1.60 62.1

J&K 3.69 1.65 122.5

Karnataka 3.31 2.01 64.8

Madhya Pradesh 4.57 2.05 122.5

TN 4.88 1.56 211.5

Uttar Pradesh 3.73 1.39 168.4

Sorghum

Andhra Pradesh 2.40 1.51 1.14 58.8 109.8

Gujarat 2.13 1.41 1.00 50.9 112.1

Karnataka 1.50 1.21 0.47 23.3 219.0

Madhya Pradesh* 1.51 0.98 1.33 53.5 13.3

Maharashtra 1.83 1.24 0.72 47.5 151.9

Rajasthan* 1.91 0.61 0.71 212.7 167.6

Tamil nadu 1.83 1.35 0.61 35.5 200.2

Uttar Pradesh* 1.75 1.12 1.00 56.5 74.8

* relates for kharif season only

Table4: Frontline Demonstrations yield and actual yield of maizeand sorghum (2003-04 to 2004-05 )


implementation of the scheme is100% funded by the Governmentof India. Beneficiary farmers needto contribute 50% of cost of theactivities / work to be taken up attheir / individual farm holdings.Beneficiaries may choose to drawloans from the Banks, in whichcase subsidy amount prescribed fora particular component for whichthe loan has been availed will bereleased to the Banks.

CHALLENGES, STRATEGY ANDPOLICY ISSUESTARGETING THE POTENTIALAREAS

To maintain the productivitylevels of the most productive regionsin sustainable manner and to avoidthe over exploitation of naturalresources, the alternate food grainbasket needs to be created. Theeastern region comprising ofeastern Uttar Pradesh, Bihar, WestBengal, Assam and Orissa aremost strategic for rice. Theproductivity in these States couldbe increased substantially withimproved delivery systems forcritical inputs and adequate supportto resource poor farmers. Thethrust in this region should be oninfrastructural development fortransport, irrigation, watermanagement and electricity andpost harvest management.

Management of climaticchanges

The productivity and productionof wheat reduced drastically during2003-04 and 2004-05 due to abruptrise in temperature duringreproductive phase. Concertedefforts are required for strengtheningof research for the development ofnew genotypes having tolerance toheat stress. Policy support forefficient water use during the entirecrop period and support for sprinklerand drip system of irrigation isrequired for sustainable foodgrainproduction.

Harnessing the Potential ofRainfed Areas

The rainfed areas cover 60% ofcropped area and contribute nearly

40% of the total production. Slowgrowth in rainfed areas is mainlyattributed to the low spread of HYVsand inputs like fertilizer leading tolow productivity of crops. Theproductivity in these areas can beincreased by conserving soilmoisture and selecting crop andvarieties having potential for higherproductivity under dry landcondition.

Efficient Use of WaterPractices like on farm water

harvesting and recycling throughthe creation of farm ponds; in-situmoisture conservation; rechargingof ground water; crop planningbased on land use suitability;promotion of alternate / compositecropping systems; and use of watersaving devices like drip andsprinkler irrigation systems, etc.are need to be promoted for betterwater management, rainwaterharvesting and increasing the wateruse efficiency. Water savingtechnologies including varietiesneed to be developed to economizewater use and increase waterproductivity. Improvement ofdrainage in eastern Gangetic plainsand salt affected soils is importantfor increasing the productivity.

State Improved Farmer Actual Gap % betweenpractice practice 2004-05 I and F I and A

Mustard

Bihar 1.38 0.94 0.83 47.0 66.9

Chhattisgarh 1.10 0.77 0.43 42.6 154.9

Haryana 1.64 1.41 1.55 16.3 5.2

Madhya Pradesh 1.96 1.67 1.00 17.4 95.2

Rajasthan 1.66 1.41 1.30 18.0 27.6

Uttar Pradesh 1.54 1.13 1.00 36.7 53.3

Punjab 1.56 1.42 1.19 9.9 30.5

Soybean

Himachal Pradesh 1.44 1.15 10.00 24.9 44.0

Uttaranchal 1.97 1.49 12.94 31.9 52.5

Madhya Pradesh 1.44 1.13 11.30 27.2 27.6

Chhattisgarh 2.20 1.66 0.84 32.3 161.2

Maharashra 1.90 1.51 13.96 25.9 36.6

Karnataka 1.51 1.30 0.53 16.4 185.1

Table5: Frontline Demonstrations yield and actual yield ofmustard and soybean (2003-04 to 2004-05 )

Diversification for resourceconservation

Horticulture developmentprogrammes have encouragedagricultural diversification.Diversified cropping systems arerequired in rainfed areas primarilyto reduce the risk of crop failuresowing to drought or inadequaterains. The Indo-Gangetic Plainsunder rice – wheat system offersunique opportunity for diversificationthrough short season oilseeds ascatch crop and spring summerpulses like urdbean and mungbean,and summer vegetables insequential cropping.

Over a large area in the EasternIndia, rice is grown under uplandrainfed conditions. These uplandpaddy areas, if diversified, could bemore productive with cultivation ofmaize, oilseeds, pulses, millets,vegetables, horticultural andfloriculture crops.

1 Agriculture Commissioner,

Government of India, Ministry of

Agriculture, Krishi Bhavan, New

Delhi2 Deputy Commissioner, Ministry of

Agriculture present address -Senior Scientist, Indian Institute of

Pulses Research, Kanpur


WTO AGREEMENT ON AGRICULTUREDOMESTIC POLICY REFORM OPTIONS & THE WAY FORWARD

India, among several developingcountries had anticipated thatwith the elimination of huge

subsidies by the developedcountries, international prices ofmost agricultural products wouldrise in the post-WTO phase, whichin turn would help traditional lowcost producers of agriculturalcommodities like itself gain moremarket access for its products.India had expected that cost ofproduction of agriculturalcommodities of the existingexporting countries would rise oncethey reduce domestic support andexport subsidies in agriculturalproducts. This along with theremoval of quotas and other non-tariff barriers and subsequentreduction of tariffs would enable itto increase exports. However, thelevel of subsidization carried out bythe major players of worldagricultural trade has notdecreased. All available evidencepoints to the fact that both the USand EU would do nothing in the nextfew years to bring any measure ofdiscipline on their spending. Acareful scrutiny of the statementsmade by representatives ofEuropean Union indicates that nosubstantial changes from thepresent position may beforthcoming till at least 2012.While this may be disappointing forcountries like India who expect anumber of positive changes in thearea of market access andsubsidies, the delayedliberalization may have some silverlining. We may utilize this periodfor two purposes:(1) Focus on commodities which

cover substantial portion ofinternational trade and takemeasures to make thesesectors highly competitive,improving productivity of farmand non-farm operations.

(2) Create commodity-wise detailcompetitive positioning papersgiving country-wise details ofproductivity, cost of production,tariff details, non-tariff barriersand productivity.

DOMESTIC POLICY REFORMOPTIONSThe policy areas where reform isneeded to reinforce India’scompetitive strengths and helpIndia realize its full agribusinessand agro-industrial potential are:

Public Investment in Agro-Infrastructure includinginfrastructure for agribusiness:

Public investments, at 1999-2000prices, should be raised annuallyby 12% during 11th Plan . Hence,considerable public investment willhave to be made in irrigationprojects, soil and moistureconservation, agricultural researchand extension, cold chains,transportation and food processinginfrastructure. Public and privateinvestment in rural infrastructure toease supply constraints wouldgenerate significant employmentopportunities in rural areas as well.

Improving Farm Productivity:The following steps which can betaken for this purpose includeconserving prime farm land foragricultural purposes; preventingunsustainable exploitation ofaquifers; developing strategies forstrengthening each agro-ecosystemtechnology development, training,techno-infrastructure and trade;improving food safety standards andsanitary and phytosanitarymeasures and preventing pesticideresidues in food through eco/organic -farming methods;

Akash Taneja1 and Dr. A.P. Singh2


enhancing the capacity of smallproducers to manage risks throughcrop insurance and farm systemsdiversification; organizingcentralized services to supportdecentralized production andarresting the declining investmentin agriculture by enlisting theparticipation of the private sector inthe areas of infrastructuredevelopment, input-supply, contractcultivation and home and externalmarketing.

Irrigation: Higher efficiency can beachieved by generating synergyamong water, variety, nutrients(macro and micro) and farmimplements. The concept ofmaximizing yield and income perunit of water should becomeinternalized in all crop productionprogrammes.Water quality also needs attentionsince water often gets polluted atsource with fertilizers, pesticideresidues and toxic chemicals.Effective management of surfacewater including rivers, canals, waterbodies, lakes, ponds and rainwatercan reduce groundwaterdependency.

Developing Innovative FarmingMethods: Symbiotic contractswhich confer benefits to bothproducers and purchasers will beideal for ensuring assured andremunerative marketingopportunities. National andinternational agribusinessenterprises should foster contractcultivation of a wide range of crops,on the basis of assured andremunerative buy-backarrangements. Commercialcontracts should take the form of anew social contract with resourcepoor farm women and men andlandless labor families in terms oftechnology up-gradation, training innew skills and information andknowledge empowerment. If thishappens, trade starts assuming ahigher purpose than making profitalone. Contract cultivation based ona well-defined Code of Conduct willbe helpful to small producers ingetting good quality input, a fair

price and prompt payment for theirproduce.

R & D for Agriculture: A muchlarger proportion of research resultsincluding seeds and other scientificinputs are likely to be supplied bythe multinationals at exorbitantprices. Complete dependence onmultinationals for supply of seedsincluding genetically modifiedseeds would become extremelycostly and beyond the reach ofsmall farmers. Since this wouldentail huge costs to the economy,it is important to harness resourcesfor research within the country andto undertake large investment inindigenous Research andDevelopment. R&D for agriculture,including biotechnology, is alsocritical for the long-term growth andglobal competitiveness of thissector.

Biological Resources policyThe aim of the policy should be toconserve as well as to enhancebiological resources, to provideequitable access and to lead tosustainable use with equitablesharing of benefits. Two majorlegislations-The Plant VarietyProtection and Farmers' Rights Act(PVPFR) and the Biologicaldiversity Act are now in place toachieve the above aims. However,the burden of conservation of animalgenetic resources cannot be

allowed to fall on the largelyimpoverished communities whichmaintain animal genetic diversity.A system of rewards and incentivesmust be developed to enable andmotivate people to conserve theirbreeds under the Biodiversity Act.The Biodiversity Fund should beused for such purposes. Livestockkeepers' inherent rights to continueto use and develop their ownbreeding stock and breedingpractices should be acknowledged.The government must recognizethese rights, acknowledge livestockkeepers' contribution to the nationaleconomy, and adapt its policies andlegal frameworks accordingly. Thisis particularly important to pre-emptattempts to use the intellectualproperty system to obtain controlover animal resources which are animportant component of thecountry's food and livelihoodsecurity systems.There is a need to document theindigenous knowledge of pastoralcommunities about animalmaintenance and breeding.Community-based conservationand development of indigenouslivestock breeds and speciesshould be encouraged, with aspecial focus on both hot and coldarid and semiarid areas where thegenetic diversity and associatedindigenous knowledge areparticularly well developed.


Removal of Barriers to InterstateTrade: It has to be recognized thatIndia being a founder member of theWTO is bound to undertake furthereconomic reforms in agriculture.These would include removal ofbarriers to both external and internaltrade in agricultural commoditiesthrough tariff reduction, abolition ofinternal restrictions to trade,opening future markets, andprotecting patent rights etc. Indiawould also need to improve itscompetitiveness in manyagricultural commodities throughincrease in their productivity andhas also to take steps to reversethose policies like continuous hikein administered prices that makeits exports non-competitive.

Institutional Reforms: There is aneed to undertake some importantinstitutional reforms-consolidation ofholdings and gradually freeing thelease market, keeping in mind theinterests of existing occupancytenants. A pro-active policy shouldbe designed to involve the smalland marginal farmers and thelandless labourers in derivingbenefits of increased agriculturalexports through innovativeinstitutions like integrated co-operatives such as the motherdairy, and other similar service co-operatives; contract farming, etc.Special efforts should also be madeto develop new technologies for thefarming sector and connect thoseto the small farmers for enablingthem to diversify their productiontowards high value commercial andexport commodities. The efforts onthe production front should besupplemented by creation ofinstitutions like trading houses,market intelligence services andcreation of network of informationon national and international prices.There is also a need to createnecessary infrastructure inprocessing, marketing and gradingof produce.

Domestic Market Reforms:States must amend the AgriculturalProduce Marketing (APMC) Act toallow for contract farming and free

marketing, organized retailing,smooth flow of raw materials toagro-processing industries,competitive trading and adoption ofinnovative marketing system. Alsoin need of a review is the policywhereby limits on the scale ofoperation are imposed on theprocessors of agriculturalcommodities and manufacturers offarm implements. Internal taxesand fees on raw agriculturalcommodities, such as purchasetax, mandi (market) tax, andagents' commission also need tobe rationalized and a NationalMarket for agricultural produceshould be established to ensurelegitimate share of the farmer inthe final value of the produce.

Crop Diversification: Theemerging scenario of increasingdiversification offers an opportunityfor raising farm incomessignificantly as the employmentelasticity for these activities is quitehigh. Private sector engaged inagro-processing and agro-businesscan promote diversification, both byproviding inputs and assuredmarket for output through contractfarming.

Input ProvisioningSupply of seed needs urgentattention as quality of seed is thebasic determinant of productivity.Seed production and distributionneeds revamping by strengtheningpublic sector seed agencies and byinvolving private trade in seedmultiplication and distribution.Quality checks on inputs arebecoming important as cases ofunscrupulous trade fleecingfarmers by selling spurious seeds,fertilizer and chemicals are on therise. The development, introductionand diffusion of environmentally safeand effective pesticides should alsobe given priority.Small farmers need implements fortimely sowing, management ofweeds and improved post-harvesttechnology. This need isparticularly great in hill areas.Women especially need women-friendly implements / tools which

can reduce drudgery, save time andenhance output and can be handledcomfortably. Farm graduates canprovide tractors and other largerfarm implements on a custom-hirebasis by organizing Agri-businessCenters.

Ensure Uniform AgriculturePolicies: In view of the countryconfronting such issues asstandards, environment, trade etc.in the context of the WTO, whichare really national issues, the needof the hour is to try to bring subjectslike agriculture, forestry andfisheries under concurrent list sothat common and uniform policiesand strategies can be evolvedthrough a process of negotiationsand consultations with the variousstate governments. By placingagriculture on the Concurrent List,serving farmers and saving farmingbecomes a joint responsibility of theCentre and States.

Export Promotion MeasuresTo boost up exports, it is necessarynot only to increase exportablesurplus, if necessary bysupplementing domesticconsumption through imports ofcheaper varieties of the sameproduct (as, for example, in casesof tea & rice), but also to beselective in the items of exports-specifically, to choose non-primaryand value-added items of exportsfor which the price and incomeelasticity's of demand are relativelyhigh. Products arising from suchversatile crops like sugarcane,paddy, cotton, which allow forelaborate industrial use of bio-massand can thus not only generatemore income and employmentopportunities at home, but also offergreater opportunities for absorbingexternal shocks ought to be givenhigher priority within our exportbasket. Measures which could betaken to boost exports ofagricultural produce are:� Value Addition: Probably the

most important step to boost upthe price of Indian exports is toachieve agro-processing andvalue addition of our agri-


commodities under appropriatefarmer-controlled and farmer-managed organizations, as thedeveloped countries like the EU,the US, Canada, Australia andnew Zealand have been doing.This will not only increase theshelf life of India’s agri-exports,but also augment the bargainingpower of her grass-root levelproducers. Like the developedcountries, India has tosimultaneously take advantageof bilateral, regional andmultilateral trade agreements toboost up the value of her exportsand at the same time to sourceher imports from the cheapestsource.

� Quality and EnvironmentalStandards: To take appropriatesafeguards against possible op-portunistic use of SPS and TBTclauses against our agri-ex-ports, the Ministries of Com-merce & food Processing mustprocure sufficient trade intelli-gence about her potential mar-kets and undertake necessarypre-emptive steps to handlepossible quality and environ-ment-related issues that may beraised against Indian products.

� Organic Farming: Organicfarming requires more scientificsupport than chemical farming.Internationally accepted certifi-cation procedures also needstrengthening and must befarmer-friendly and affordable.Organic farming zones could beidentified, like some of the hillareas and islands where cur-rently chemical fertilizer use isvery low, and for medicinalplants where the use of chemi-cal pesticides and fertilizers isnot advisable. Food safety andquality specifications shouldconform to the CodexAlimentarius standards sincethere are occasional reports ofheavy metals being present inorganic foods. Subsidies orloans similar to those given tofarmers to buy chemical fertiliz-ers / pesticides should be avail-able for organic manures likefarm yard manure, compost and

biofertilizers and biopesticidesalso. Farmers engaged in or-ganic farming should be linkedto niche markets where they willobtain a premium price, in or-der to compensate for any lossin yield. Farm graduates may besupported for establishing agri-clinics and agribusiness cen-tres for organic farming. Themarket for organic products hasbeen growing at more than 20per cent annually in the EU andthe US.

� Reliable Database: For a com-prehensive analysis of India’sexport performance –both prod-uct and destination-wise, datareporting system must changein two ways-at the level of bothAPEDA (Agricultural and Pro-cessed Foods Development Au-thority) and CMIE (Centre forMonitoring Indian Economy)first, both quantity and value fig-ures in dollars ought to be re-ported. Second, for any mean-ingful analysis, the perfor-mances of rival countries in themajor import markets are alsoto be provided. While APEDAmay restrict analysis to theproducts under its jurisdiction,at least the CMIE must supplycomprehensive data on a con-tinuous basis. The formats of theTimely Reporting Scheme (TRSScheme) as well as the Im-provement of Crop Statistics(ICS) Scheme need to be thor-oughly reviewed and changedfor bringing about a lasting im-

provement in the basic systemof Agriculture Statistics. An al-ternative methodology for esti-mation of production of the hor-ticultural crops as recom-mended by NSC should be fol-lowed. The economic contribu-tion of post-harvest activitiessuch as trade, processing,packaging and the related ac-tivities in the periphery of agri-culture need to be captured asGDP share of agriculture andallied activities.

Improving AgriculturalInsurance CoverageThere is scope for improving thecoverage of the National AgriculturalInsurance Scheme (NAIS) in termsof regions and crops, substitutionof long term yield rate as a benchmark and ensuring prompt paymentof the indemnities. The decision todevolve the area of damageassessment from blocks to smallerunits may be done with care, asthe costs of such decentralizationand the moral hazards will be veryhigh compared to the likelybenefits. All commercial banks,Regional Rural Banks (RRBs) andthe Cooperative Banks should makecrop insurance mandatory for allagricultural loanees, especiallybecause such insurance canindirectly contribute to the viabilityof rural banking.

Access to Agricultural CreditThe financial services must reachall its users effectively; the credit


must be in time, in requiredquantities and at appropriate interestrates. The interest rate should beas low as possible. It should bepossible to bring about a reductionin the transaction cost. Theinefficiencies of the delivery systemshould not be loaded on the interestcharged. The delivery system hasto be proactive and should respondto the financial needs of the clientsin rural areas. The banking systemneeds to explore the large unmetcredit potential needed to raiseagriculture to higher thresholds, andfor the growth of rural and agri-business enterprises andemployment. There is a need for anAgriculture Credit Policy. The creditcooperatives have animportant position inthe rural financialsystem and priorityshould be given to theformulation of such apolicy.

M a r k e t i n gOpportunitiesThe StateGovernments willhave to undertakemany reformsspeedily in order toprovide more optionsto the farmers forselling their produce, allowing theprivate sector, including thecooperatives, to develop markets,promote direct sales to consumersand remove bottlenecks and scopefor corruption and harassment.What farmers seek is greaterprotection from market fluctuations.Important steps are needed tostrengthen the Minimum SupportPrice (MSP) mechanism andimplement it effectively across thecountry. MSP of crops needs tokeep pace with the rising inputcosts; the Market InterventionScheme (MIS) should respondspeedily to exigencies especiallyin the case of sensitive crops in therain fed areas; establish CommunityFoodgrain Banks to help in themarketing of underutilized cropsand thereby generate an economicstake in the conservation of agro-

biodiversity; provide capacitybuilding for farmers who canproduce a wide range of healthfoods and herbal medicines andmarket them under strict qualitycontrol and certification proceduresand making the Public DistributionSystem (PDS) universal, therebyenabling it to undertake the task ofenlarging the food security basketby storing and selling nutritiousmillets and other underutilizedcrops.Restructured Land Use Boardssupported by a team of technicalexperts/agencies should render theservice of authentic information forland use decisions andinvestments. Infrastructure support

has to be put in place to minimizepost-harvest losses and enable agro-processing and value addition at thevillage level itself to increase jobs andincome. The collective strength offarmers has to be built up byencouraging farmers’ organizationsand other entities like cooperativesand small farmers’ estates so thatthey can get a fair deal and enjoythe economies and power of scale.Constraints in improving thenegotiability of warehouse receiptsalso need to be removed.There is need for an Indian TradeOrganisation (ITO) that willsafeguard the interests of the farmerfamilies by establishing a LivelihoodSecurity Box to ensure fair trade.The Livelihood Security Box shouldhave a provision to imposequantitative restrictions on importsand or/increases in import tariffs,

under conditions where imports ofcertain commodities appear to bedetrimental to the work and incomesecurity of large numbers of farmingfamilies. Farmers’ Associations andSHGs should be helped to exporton competitive terms by spreadingawareness of the opportunitiesavailable for external agriculturaltrade. The agri-export zones shouldbe further strengthened and shouldbecome places where farmers willget the best possible price for theirproduce. The future of Indianagriculture will depend upon theefficiency and seriousness withwhich pro-farmer marketingsystems are put in place.

I n c e n t i v i s i n gWomen Farmersand AttractingYouthEnhancing women’srights in land,p r o v i d i n gi n f r a s t r u c t u r esupport to womenfarmers, andadvancing legalsupport on theexisting laws, will getrecognition forwomen as farmersand enable them toaccess credit,

inputs, and marketing outlets.Second, women’s names should berecorded as cultivators in the revenuerecords, on family farms, wherewomen operate the land havingownership in the name of malemembers. The gender bias in thefunctioning of institutions forinformation, extension, credit, inputsand marketing should be correctedby gender-sensitizing the existinginfrastructure providers. Women’scooperatives and other forms ofgroup effort should be promoted forthe dissemination of farm technologyas well as for the marketing ofproduce.Educated youth should be helpedthrough a form of Venture CapitalFund, low interest loans andallotment of wastelands for settingup agri-clinics and production-cum-processing centers to undertake


outsourcing jobs, both from withinand outside the country, enablingIndia to emerge as a majoragricultural outsourcing hub. Eco-agriculture is knowledge intensiveand hence there is a need to ensurethat large numbers of educatedyoung men and women take tofarming and farm related enterprisesas their vocation. This is an areawhere symbiotic partnershipsbetween young entrepreneurs andthe private sector will be beneficial.

Encouraging Private SectorParticipation in AgriculturePrivate sector can play a major rolenot only in the post-harvest handlingand distribution of produce but alsoby forging appropriate arrangementssuch as contract farming withfarmers, particularly for high valuecrops.

Taking Proactive measures forClimate ChangeProactive measures to reduce thevulnerability to climate changeshave to be developed. Based oncomputer simulation models,contingency plans and alternativeland and water use strategies willhave to be developed for each majoragro-climatic zone. In drought andflood prone areas, experienced farmwomen and men can be trained as“Climate Managers”, in the art ofmanaging drought, flood andaberrant monsoons.

The way forwardIndia’s demonstrated comparativeadvantage in tropical products andits emergence as a competitivesupplier in many temperate-zoneproducts, places it in a very goodposition to adopt a bold approachin the negotiations on agriculture.India must do so not only in seekingreduction in support and protectionin the developed countries but alsoin offering concessions itself. Thedanger in maintaining a defensiveposture is that it would tilt thebalance in favor of minimalliberalization and the continuationof the flawed framework of theUruguay Round that several majorplayers are seeking. As an efficient

producer of agricultural products ingeneral, it must make all efforts toobtain a fundamental reform ofworld agriculture. Seekingreduction in support and protectionby all countries is a better strategythan pursuing the objective ofkeeping its own market accessrestrictions at a high level. Indiacan never compete with the majordeveloped nations in extendingdomestic support or grantingmassive subsidies to theiragricultural exports. It is true thatIndian agriculture could bethreatened by the high levels ofsubsidization prevailing in thedeveloped countries, but the remedylies in getting them to make a steepreduction in these levels rather thanin asking for the ability to raise thealready high tariff levels in India.Gradualism has failed miserably inushering in real reform in worldagriculture and what is needed nowis the radical reduction of supportand protection. Instead of returningafter short periods for further roundsof tortuous negotiations the aimshould be to chart out the coursethat must be covered over a longerterm.There has to be a fundamental shiftin the approach of India and otherfellow developing countries inshowing each other respect. Theyneed to emphasize less on specialand differential (S&D) treatmentand more on equal treatment. Therewas little value in the developingcountries having been allowed inthe Uruguay Round to makereductions in tariffs at a lower rateand over a longer period while someindustrialized countries retained thepossibility of maintaining tariffs inmultiples of 100 percent on somekey products. The high base ratesin the EC and the US that resultedfrom the tariffication process haveexposed the flaws in thearrangement.Special and differential treatmentproved to be a more potentnegotiating tool for the developedcountries, as it helped them toinfluence the developing countriesto become less demanding onthem for undertaking real reforms.

The lesson to be learnt from theUruguay Round is that thedeveloped countries would need tobe subjected to much more moraland political pressure in the futurebefore they relent on their highlydistorting agricultural policies. Oneof the ways of doing this is to throwa challenge to them throughproposals for deep reform inagriculture, which is at the sametime designed to the maximumextent possible, for uniformapplication to the entire WTOMembership. We believe that if thereform is deep enough it can beapplied equally by the developingcountries without it becomingburdensome for them.The key concerns of developingcountries i.e. meeting the objectivesof food security and livelihoods haveto ensure that effective marketaccess is available in the largermarkets and that market pricesreflect efficiency costs. The need ofthe hour is that the developingcountries should strengthen theirnegotiating power, as their share inworld trade is increasing.India must realize that with the hugemarket herein and substantivegrowth of middle class during pastfew decades, no developed countrycan ignore her. Though Indiacurrently accounts for less than 1%of the world imports, it promises tobe a vast market in the near future.However, agriculture having theelements of livelihood andemployment forces, we need to beprotective also. Balancing the twoopposing factors, our endeavormust be to force continuously ourview points and interests during thenegotiations on one hand and takethe domestic agriculture policyreforms including creating of anagribusiness and agro-industryplatform at the home front as amission to be accomplished toensure a glorious destiny for thecountry in the field of agriculture andfood security.

1Joint Director General of ForeignTrade, Ministry of Commerce &

Industry and 2CCS University, Meerutpresent the WTO scenario for our

readers


Indian agriculture, a potpourri ofagro ecological conditionsinterspersed with equally diverse

levels of land holdings has got allthe elements of a successfulenterprise. The natural resources,the agro climatic conditionssupporting a wide variety of crops,skilled manpower and almost twothirds of the one billion people, whoderive their livelihood from this hugeindustry – all point to the makingsof a highly successful industry.These facts might appear to bemisleading if juxtaposed against thecontribution of Indianagriculture to the IndianGDP.Though this poor displayof economic strength bythe agriculture sectorhas been attributed tothe archaic agriculturepractices followedfervently by the majorityof Indian farmerscoupled withf r a g m e n t e dlandholdings and severedisconnect between laband land, the root of allcauses is thed i s p r o p o r t i o n a t edistribution of credit. Asagriculture is the soul of rural India,this disparity is reflected in thegeneral well being of the ruralpopulace. The poorest groupsspend the highest proportion of theirincome on food – typically morethan 60% and sometimes as muchas 90%. Under thesecircumstances, any drop inearnings, or any additionalexpenditure has immediateconsequences for family welfare –unless savings or loans can beaccessed. Financial transactionsare therefore an integral part of thelivelihood system of the poor.

The changing face ofagriculture needs a freshinfusion of creditAgriculture, which was oncepractised at subsistence level, hasnow scaled newer heights. Theminiature affair has beentransformed into a large scaleenterprise with many corporatesentering the agri marketing andretail business. Although this hascreated opportunities for theproduction of better produce, thisdevelopment is not that far fetchedand unevenly distributed. Along with

this pace, the subsidiary industrieshave not made an equallyimpressive performance. To supportthis industry, roads, cold chain,warehouses, packaging andprocessing units, logistics, tradingalong with many other componentsneed to be strengthened, the scaleof which can only be raised byconsistent investment in this field.But over the years, the investmentshave declined in this sectorespecially from the public front.Public sector investments did notgrow over the years andconsequently growth in the stock

of public sector capital formationhas declined from 3.86 to 1.92%(2007). Agriculture in India is stillunderdeveloped with respect ofproduction, marketing, processingand transport at the global level. Dueto this, agricultural trade after 1996/7 declined at the rate of 1.69%annually. Post-harvest in handling,transport, processing and portshave remained poor. There is a needto increase the supply ofinstitutional credit, throughcooperatives, commercial banksand micro finance institutions on

easy terms andconditions at lowr e a s o n a b l einterest rate. “Thec h a n g i n ge c o n o m i clandscape ofagriculture andg r o w t hopportunities arealso reasons forfocusing on privatesector investmentin agriculture;Though there hasbeen stagnation ofsorts in the sector–agro- processingoffers scope for

tremendous growth, with hardlyabout 7% of farm produce nowprocessed. Compared todeveloping countries like USA, forexample, almost 60-70% of thefruits produced are processed”,says Mr A.C. Mahajan, Chairmanand Managing Director, CanaraBank. Initiatives are required toaccelerate Insurance against risksin agriculture of all crops at everyseason.The eleventh five year plan hasaddressed all these issues and 11th

Plan comes to 2.25 times more thanthe outlay of 10th Plan. The Eleventh

The Changing Face of Agro

Finance


Plan aims to bring 11 million ha ofland of new irrigation potential andanother 3-4 million ha of land frommodernization of existing structuresand restoration of tanks. It hasestimated a total financialrequirement of Rs.2,08,000 croresfor irrigation, command areadevelopment and flood control.Biotechnology, another importantarea has also been fairly addressedin the eleventh five year plan andan amount of Rs.12000 crores havebeen outlined for the overalldevelopment of this field. Similarly,fertilizers, a cardinal input in theIndian agriculture also has been thefocal point of the policy makers andis accustomed to receive hugechunks of favour as subsidies.Though the fertilizer industry is coreto the existence of Indianagriculture, there has been aconsiderably minimal freshinvestment in this industry. Thesubsidy generously doled out by thegovernment has earned the wrathof the fertilizer industry. “The cashstrapped fertiliser industry needsreimbursement of major portion ofits delivered cost, which is paid inthe form of subsidy, in cash only tomeet its day-to-day paymentobligation for purchase of feedstock/raw materials.The subsidy constitutes more than80% of the delivered cost offertilisers. No industry can sustainoperations if such a large portion ofits cost remains blocked with theGovernment. As the subsidy burdenof the Government has reached anun-sustainable level, the industryexpects some bold and effectivesteps by the Government to resolvethe situation”, says R C Gupta,Deputy Director General, FertilizerAssociation of India.Food Processing Industriesconsidered as the sun rise Industryhas suddenly emerged as aprominent player and is beingprovided assistance for setting up/expansion/ modernization of foodprocessing industries covering allsegments including milk products,meat, poultry, fisheries, oil seedsand other such agri-horticulturalsectors. The Eleventh Five Year

Plan for this industry has been setat Rs.5006 Crores.

Rural Finance is the backboneof the Indian AgricultureRural finance is inclusive of thefinancial services offered and usedin rural areas by farm and non-farmpopulation of all income levelstrough a variety of formal, informaland semiformal institutionalarrangements and diverse type ofproducts and services, such asloans, deposits, insurance, andremittances. Agri finance is acrucial subset of rural finance.Till date the informal sourcesremains the largest benefactor ofthe rural credit needs. Moneylenders although charge exorbitantrates, still remain the most preferredsource of credit. The hassle freetransactions and easy accessmake the farmers indebted to thempaying a huge price.The institutionalization of credit inthe rural areas has to some extentbeen successful in wiping out thesole dependency of farmers onprivate money lenders. Agriculturalcredit is disbursed through a multi-agency network consisting ofCommercial Banks (CBs), RegionalRural Banks (RRBs) andCooperatives. There areapproximately 100,000 village-levelPrimary Agricultural CreditSocieties (PACS), 368 DistrictCentral Cooperative Banks(DCCBs) with 12,858 branches and30 State Cooperative Banks (SCBs)

with 953 branches providingprimarily short and medium-termagricultural credit in India. The long-term cooperative structure consistsof 19 State Cooperative Agriculturaland Rural Development Banks(SCARDBs), with 2609 operationalunits as on 31 March 2005comprising 788 branches and 772Primary Agricultural and RuralDevelopment Banks (PA&RDBs)with 1049 branches.The institutional credit hasstrengthened the rural financialsector. Every year specific targetsare laid by the union governmentand to some extent has beensuccessful in maintaining theirtempo in rural financial sector.

Recently, the rural geographyhas been found to be interspersedwith services offered by manycommercial banks. “72 % of India’spopulation lives in rural areas. Oursis basically rural centric andagrarian economy. About 65-70%of the population is dependent onagriculture. Agriculture and Alliedsectors contribute nearly 22% ofGDP of India. The Banks werenationalized with a social objectiveof reaching out to the commonpeople. Banking facilities andservices have been made availableto the people in rural and remoteareas like North East Region. Creditflow to Priority Sector, Agriculture,Weaker Sections andImplementation of various CreditProgrammes immensely help foreconomic empowerment of rural


masses. The SHG movement hastaken deep roots in the rural areas.Farmers and rural masses aregenuine and honest in utilizing thefarm credit and repaying the loanspromptly. The rural banking is aviable business proposition for theBankers.

There is a lot of untappedbanking potential in rural areas.There are 31,117 rural and 18,096semi-urban branches of scheduledcommercial banks as of Sep’ 2008in the country as a whole. Thesebranches constitute 64% of the total77,069 bank branches in thecountry but account for 23% of thetotal deposits and 16% of the totaladvances. The Invest India MarketSolution (IIMS) Survey indicatesthat only 14% of agricultural wagelabourers have bank accounts.There is vast scope for agricultureand rural development throughFinancial Inclusion. Hence, ruralbanking is one of the importantbuilding blocks of our nation’seconomy,” explains M.S. SundaraRajan, Chairman & ManagingDirector, Indian Bank.

This year the budget has alsokept the slogan of ‘aam admi’ inmind while allocating funds inthe budget proposals

The Government of India hasover the time has accorded specialpackages in the budgets.“Agriculture is a state subject andthere is a limit to what the Centralgovernment can do to help inaccelerating the pace of progressin improving the productivity andprofitability of small holdings.Nevertheless, the government ofIndia can show the way by providingincentives for right action. Duringthe last three years, several majorsteps have been taken to reversethe trend of lack of investment inrural areas. Apart from BharatNirman, schemes like RashtriyaKrishi Vikas Yojana (Rs 25,000crores), National HorticultureMission (Rs 20,000 crores),National Food Security Mission (Rs5,000 crores) have been introduced”,says the renowned agriculturistM.S. Swaminathan.

The agriculture sector hasrecorded a growth of about 4 percent per annum.

In 2008-09, agriculture creditflow was Rs.2,87,000 crores. In theunion budget 2009-10, the target foragriculture credit flow for the year2009-10 is being set at Rs.3,25,000crore. The Finance Minister, PranabMukherjee in his budget speechoutlined the measures to achievethis. “To achieve this, I propose tocontinue the interest subventionscheme for short term crop loansto farmers for loans upto Rs.3 lakhper farmer at the interest rate of 7%per annum. I am also happy toannounce that, for this year, theGovernment shall pay an additionalsubvention of 1% as an incentiveto those farmers who repay theirshort term crop loans on schedule.Thus, the interest rate for thesefarmers will come down to 6% perannum. For this, I am making anadditional Budget provision ofRs.411 crore over Interim BE.”

The Rs.71,000 crore one-timebank loan waiver was one of thehighlights of the previous budget.Although this budget did notpropose any such populistmeasure, an extension to thepayment of the overdues wasextended up to 31st December,2009 instead of the 30th June, 2009under the Agricultural Debt Waiverand Debt Relief Scheme (2008).

An additional Rs.1,000 croreover Interim BE has also beenearmarked for the AcceleratedIrrigation Benefit Programme(AIBP), marking an increase of 75%over the allocation in 2008-09(BE).The allocation for the RashtriyaKrishi Vikas Yojna (RKVY) is alsobeing stepped up by 30 per centover Budget Estimates of 2008-09.

Apart from agriculture, enoughfinancial support is also beingpumped for uplifting the ruralpopulace. NREGS was apportionedRs.39,100 crore for the year 2009-10, an increase of 144% over 2008-09 Budget Estimates. Anotherhighly anticipated programme,National Food Security Act whichaims at every family living below thepoverty line in rural or urban areaswho will be entitled by law to 25kilos of rice or wheat per month atRs.3 a kilo.

Allocation has also beenstepped up for projects such asBharat Nirman, Pradhan MantriGram Sadak Yojana (PMGSY),Rajiv Gandhi Grameen ViduytikaranYojana (RGGVY) and Indira AwaasYojana ( IAY). Apart from steppingup the amount allocated to thealready existing schemes, a newscheme called Pradhan MantriAdarsh Gram Yojana (PMAGY) isbeing launched this year on a pilotbasis, for the integrateddevelopment of 1000 villages and


for which Rs.100 crores is allocated.Similarly, Swarna Jayanti GramSwarozgar Yojna (SGSY) is beingrestructured as the National RuralLivelihood Mission to make ituniversal in application, focused inapproach and time bound forpoverty eradication by 2014-15.

This year’s budget has wonadmiration from manystakeholders. But they are alsoequally apprehensive about therightful implementation of the variousschemes proposed. “The UnionBudget for 2009-10 has beengeared towards creating moredemand by an expenditure friendlypolicy towards welfare and ruralemployment schemes such asNREGA, which is getting awhopping increase of 144%to spend Rs.39,100crores. Implementation ofthis mega program, andreaching the right peoplewill remain a majorchallenge, and only timewill tell whether suchexpenditure will have anypositive effect on the poor.In the meantime, highestever fiscal deficit will becreated since theeconomic reforms startedin 1991, which will startputting inflationary pressures nottoo distant in the future. Growthoriented schemes for agriculture aresomewhat less. The onlycommendable scheme is that ofPradhan Mantri’s grameen sadakyojana (rural roads). IFPRI’sresearch shows that rural roadshave maximum impact in alleviatingrural poverty. The FM could havedone much better by raisingallocations for agriculture R&D, forirrigation investments, cleaningseveral policy hurdles to encourageprivate sector participation in agri-business, especially in the seedssector, in agro-processing, and inretailing. None of the expectedreform agenda has beenannounced, and therefore, nowonder, there has been avery dampened response from themarkets”, says Ashok Gulati,

Director in Asia, InternationalFood policy Research Institute.

Rural banking and credit isgoing to assume moresignificance in the future.

The banking sector hasrecognized the true potential of therural banking and credit. Even thefuture is not going to be differentasserts Dr.K. C. Chakrabarty, Dy.Governor, RBI. “Going ahead, ruralbanking and credit would gain insignificance. The wide fluctuationsin global agro prices in recent yearshave once again underlined theimportance of self-sufficiency in foodproduction. Further, if the Indianeconomy is to grow at 10% over

the next few years, it would not bepossible unless the agriculturesector grows at 3-4% pa. Astronger agriculture and rural sectorwould have a multiplier effect in theeconomy by generating demand forgoods and services.

The underpenetrated and under-serviced rural sector offers vastbusiness opportunities for ruralbanking and credit. Expansionof banking services in the ruralareas would help in maintainingthe growth momentum of thebanking sector despite slowingdown of the economy. Theprosperity of the rural areas in turnwould help the banks to prosperand hence it is in their own vestedinterest that the banks would needto work towards the developmentand prosperity of the rural areas.Replacing the private credit is a

big challenge as well as opportunityfor the banking sector.

Recognizing the emergingsignificance of the rural sector, eventhe private banks which hithertowere restricted to urban centres areentering the rural areas. The MFIs,NBFCs are also making inroadsinto the rural areas in a big way.Banks can maximize their reach tothe rural population through theseMFIs / NBFCs.

To reduce the intermediationcost, multipronged arms would beused to reach the rural masses.Besides, network of branches,adopting BC/BF model, technologyinnovation like rural kiosk etc wouldhave to be employed. PNB is

contemplating One Lakhsuch touch points in therural areas within the nextfive years.

Going ahead, ruralcredit will get a boost onaccount of the recentinitiatives of the Govt. toissue Unique IdentityNumber to all the Citizensof the Country which willfacilitate compliance ofKYC norms and hencesimplify the process ofpurveying rural credit”.

Agriculture, all over theworld is under severe stress. Thesituation is also not so differentin a country like India. In India, acountry where agricultureassumes profound influenceowing to the heavy dependencyof the majority of the population,the situation is worse. With apopulation of 1 billion who spend50% on food and with a rapidincrease in the upper and middleclass population, there is goingto be a tremendous gap in foodproduction that needs to beaddressed as soon as possible.Only with fresh investments fromvarious sources can we addressthese issues. Even the policyenvironment should be madefavourable to invite investments into this sector.



RRRRResearch, Tesearch, Tesearch, Tesearch, Tesearch, Training,raining,raining,raining,raining,Extension andExtension andExtension andExtension andExtension and

EducationEducationEducationEducationEducation


MARKETING, VALUE ADDITION AND EXPORT OF HORTICULTURE

AND PROCESSED PRODUCTS– PROBLEMS AND PROSPECTS

Dr.T.M.Gajanana & Dr.M.R.Hegde

The importance of horticulturalcrops, especially fruits and veg-etables, in improving the nutritionalstatus and economy needs noemphasis. The varied agro-climaticconditions prevailing in India areconducive for the cultivation of fruitsand vegetables in different stagesround the year. The importance ofthis sector has been realized by the

planners and policy makers onlyrecently. Establishment of NationalHorticulture Board (NHB) in 1984,creation of APEDA in 1986 for en-couraging exports, formation of aseparate Ministry of Food Process-ing (MFPI) in 1988 for improvingprocessing of horticultural cropsand adoption of liberalized seedimport policy in 1988 to overcomethe constraints of non-availability ofquality planting material are someof the important steps taken by theGovernment of India for encourag-ing the horticulture sector. Themajor boost to horticultural devel-opment was given during VIII planby an allocation of Rs.10,000 mil-lions which coincided with the lib-eralization policies initiated by theGOI. A special provision of Rs.975millions was also made for exportof horticultural crops. During the lib-eralization period many policies

were initiated for the overall devel-opment of horticultural sector. Theimportant ones are: according 100per cent EOU status to floriculture,‘Extreme Focus Area’ for fruit andvegetable processing industries andfloriculture, abolition of excise dutyon processed food, subsidy on ex-port of fruit, vegetables and flowersby APEDA etc. It is heartening to

note that in order toimprove the level ofprocessing to reducewastage, increasemarketability and tohelp the farmers toenjoy higher value re-alization, APEDA hasdeveloped a conceptof Agri-Export Zones(AEZ). It takes a com-prehensive look at aparticular produce/product located in acontiguous area forthe purpose of devel-oping and sourcing

raw materials, their processing/packaging leading to final exports.Thus, cluster approach is followedto address marketing problems ofcertain produce/products in aspecified area. In fact, there are 60AEZ for horticultural produce/prod-

ucts. The plan allocation has fur-ther increased to Rs.12,000 mil-lions during IX plan and toRs.17,000 millions during the Xplan. Further, under National Horti-culture Mission (NHM) also horti-culture is being supported by thegovernment.

The steps taken and policiesinitiated by the GOI have startedgiving results in terms of increasedproduction. The introduction of hy-brids in case of vegetables like to-mato, cabbage, cauliflower, chilliesetc. during the late eighties hasincreased the productivity. However,concurrent improvements are notmade in production and marketingof fruits and vegetables which hasresulted in gluts in the market andviolent fluctuations in prices.

Against this background, thearticle analyses in detail thepresent status and trend in fruit,vegetable and flower production,marketing and export scenario inthe context of changed policy envi-ronment and strategies for im-proved production and post harvesthandling of fruit and vegetables.

Horticultural scenario in IndiaHorticulture sector including

plantation and spices crops has

Fig.1: Horticulture scenario in India


been growing over the years. Horti-culture comprising fruits, vegetableand flower crops constitute themajor chunk of this sector account-ing for more than 90 per cent. Fur-ther, the share of these has alsobeen increasing over the years [Fig.1].

A.FRUITS AND VEGETABLES

I. Production of fruits and veg-etables

With the GOI initiatives havingstarted bearing fruits, India is nowthe second largest producer of fruitand vegetables contributing about10.90 per cent and 11.90 per centto the total world fruit and vegetableproduction, respectively. Amongfruits, India ranks first in the pro-duction of mangoes (40%), banana(24.5%), papaya (28.8%) and limeand lemons (11.9%). Among veg-etables, India is the largest pro-ducer of peas (29.5%); second larg-est in brinjal (28.7%), cauliflower(28.9%), onion (14.7%) and cab-bage (8.8%). India ranks fourth (7.3%) in tomato production.

Productivity of fruits and veg-etables

One of the disquieting featuresof the Indian horticulture sector isthe low and declining productivityof fruits and vegetables. Amongfruits, the average productivity ismuch lower in India compared toother fruit producing countries in the

world. Except grapes and banana,the productivity in India is muchbelow that of the other fruit produc-ing countries.

As regards vegetables, the av-erage productivity is the lowest inIndia and among individual veg-etables also, the productivity in In-dia is the lowest among the majorvegetable producing countries inthe world.

Growth in production of fruitsand vegetables

In India, fruits are grown on anarea of 5.51 million hectares with aproduction of 58.92 million tonnes.The important fruits are mango, cit-rus, banana, apple, litchi, guava,pomegranate and sapota. Veg-etables are grown on an area of 7.49million hectares with a productionof 116.33 million tonnes. The im-portant vegetables grown are po-tato, brinjal, tomato, onion, okra,cauliflower, cabbage and greenpeas. Production of fruits and veg-etables has increased from about87.13 million tonnes in 1991-92 toabout 174.95 million tonnes in2006-07 [NHB, 2008].

Fruits and vegetables together

Fruits Countries

India China Brazil USA Italy Philippines

Major fruits 10.70 8.50 15.50 23.20 14.90 12.20

Banana 33.10 24.40 13.60 - - 15.10

Grapes 25.40 14.50 - 18.70 11.30 -

Mango 6.20 8.50 16.00 - - 5.80

Papaya 31.70 - 48.30 - - 15.50

Pineapple 15.80 19.00 37.10 - - 36.30

Productivity of Fruits - India vis-à-vis other countries (t/ha)

Source: NHB, 2007. Indian Horticulture Data Base 2006

Vegetables CountriesIndia China Brazil USA Italy

Major vegetables 15.20 19.30 - 28.20 27.00Brinjal 16.50 17.90 - - -Cabbage 22.10 19.70 - 36.90 -Cauliflower 18.00 20.30 - 18.60 23.70Onion 13.30 21.10 19.50 51.20 -Peas 7.30 9.20 - 10.00 -Tomato 17.50 24.20 57.00 66.30 51.80

Source: NHB, 2007. Indian Horticulture Data Base 2006

Productivity of Vegetables - India vis-à-vis other countries (t/ha)

Year Fruits Vegetables Total

1993-94 32947.33 62708.33 95655.66

1999-2000 44266.67 83680.67 127947.34

2006-07 56176.17 108776.20 164952.40

CGR (%) 3.62 4.16 3.97

Fruit and vegetable production in India (in 000 tonnes)


registered a growth of 3.97 per centin production, 3.06 per cent in areaand a meager 0.89 per cent in pro-ductivity. As regards fruits, produc-tion registered a growth 3.62 percent which was mostly area led(4%) rather than productivity led (-0.37%). In case of vegetables, pro-duction grew at 4.16 per cent andhere also area led growth was no-ticed as the area grew at a rate of2.44 per cent and yield registereda growth of only 1.68 per cent.

II. Marketing of fruits and veg-etablesPost harvest loss and its impacton per capita availability

Despite a phenomenal increasein the production of fruits and veg-etables, the much needed nutri-tional status of the population hasnot improved much as the percapita availability of fruits and veg-etables is still about 87.55 g/dayfor fruits and 174 g/day for veg-etables which is far less than therecommended levels of 120 g/dayand 300 g/day, respectively, forfruits and vegetables. One of themain reasons for low per capitaavailability is the enormous lossesof fruits and vegetables which areestimated to be 17 to 35 per centthat occur at different stages ofhandling, transport, storage, pro-cessing and distribution. The postharvest losses in fruits and veg-etables also result in increase inthe transport cost and hence the

marketing cost.Thus, the post-harvest losses in

fruits and vegetables affect bothproducers (by reducing their sharein the price paid by the consumer)and the consumers (by reducingthe availability of fruits and veg-etables and also through higherprices paid because of the in-crease in the transport cost etc,.).Besides, at the macro level, theeconomy would be losing crores ofrupees due to total cost of thelosses of fruits and vegetables. In-dia annually loses fruits worthRs.14685 crores (25% loss at anaverage price of Rs.10,000/t) andvegetables worth Rs.8724 crores (aloss of about 20% at an averageprice of Rs.4000/t.). Together,losses in fruits and vegetablesamount to Rs.23409 crores.

Present marketing system forfruits and vegetables

Due to the presence of too manyintermediaries and concentration oftrade in a few hands resulting inexploitation of the grower – sellers,the producer’s share in consumerrupee is low. However, in view of theincreased production of fruits andvegetables and also to sustain theinterest of the cultivators and alsoto motivate them to produce more,it is imperative that they get a rea-sonably high price for their produce.It is also essential to identify thebest channel of marketing whichensures this. In this context, the

present marketing system is ex-amined.

Fruit marketingPre-harvest contractors (PHC)

are found to be predominant inmarketing of fruits as nearly 75 percent of fruits has been marketedthrough PHCs. The recent studieson mango, pomegranate, banana,grapes and pineapple also reportedthe dominance of PHCs in market-ing. Thus, it suggests that the pre-dominance of PHCs in fruit market-ing is still continuing despite thefact that it is not a desirable prac-tice.

Marketing of vegetablesThe studies on vegetables have

shown the predominance of com-mission agents (CA) in their mar-keting. The analysis of costs andreturns associated with this chan-nel indicated that commissioncharges account for the major com-ponent of marketing costs followedby transport cost.

Marketing strategiesTransformation is taking place

in marketing of high value com-modities like fruits and vegetablesdue to globalization andliberalisation. Accordingly procure-ment and distribution system forfruits and vegetables is also wit-nessing institutional innovations inthe form of contract farming, grow-ers’ associations, cooperative mar-keting and also integration of pro-duction and marketing through pro-cessing. Of late super markets (Re-tail Supply Chain) are entering thefruit and vegetable marketing in abig way. While on one hand thesetransformations are creating op-portunities to the farmers in termsof increased access to markets,quality inputs, technology, informa-tion and services which eventuallylead to improvement in productivityand reduction in marketing andtransaction costs [Birthal et al,2007]. On the other hand, there isapprehension as to whether theseinnovations would benefit the smallholders. Studies conducted at IIHR,


Bangalore [Gajanana, et al, 2003;Subrahmanyam, 2000;Subrahmanyam and Gajanana,2000; Sudha and Gajanana, 2003]have brought out the beneficial roleplayed by cooperative marketing offruit and vegetables, growers’ as-sociations, distant market sale, in-tegrating production with marketingthrough processing and contractfarming.

III. Export of fruits and veg-etables

Globalization is creating oppor-tunities for the export of high valuecommodities like fruits and veg-etables. Though India is not a promi-nent player in the international mar-ket for fruits and vegetables, theexport sector for fruits and veg-etables has been looking brighterespecially during the last decade.Between 1993-94 and 2004-05, theexport of fresh fruits and vegetableshas registered a significant com-pound growth (CGR) of around13.98 per cent in value and 9.94per cent in quantity. On the otherhand, processed fruits and veg-etables registered a CGR of 15.72per cent in value and 14.39 per centin quantity during the same periodthereby suggesting the prospectsfor both fresh and processed fruitsand vegetable. Further, the pros-pects appear to be better for thelatter in the international markets.Mango, grapes, pomegranate, on-ion, tomato and gherkins are theimportant fresh fruit and vegetablesexported. During 1993-94 to 2004-05, fresh grapes registered signifi-cant CGR of 10.37 per cent in valueand 4.29 per cent in quantity. UK,Netherlands, Sri Lanka and UAEare the major importers of freshgrapes from India. Export of freshmango has been growing at a rateof 8.57 in quantity and 8.84 in value.UAE, Bangladesh, Kuwait, UK andFrance are the major importers ofmango. Pomegranate is emergingas an important export oriented fruitand its export is growing at 10.04per cent in quantity and 15.81 percent in value both of which arehigher compared to the growth reg-

istered in mango and grapes.Export of all fruits together hasregistered a growth of 8 per centin quantity and 10 per cent invalue. Export of vegetables isgrowing at 8.59 per cent in quan-tity and 14.14 per cent in value.Among vegetables, onion exportis growing at a rate of 7.34 inquantity and 11.09 per cent invalue.

IV. PROCESSING OF FRUITSAND VEGETABLES AND VALUEADDITION

Present status and potentialFruits and vegetables are the

major horticultural products, whichamount to 58.74 and 109.05 mil-lion tonnes respectively. With thecultivated area of about 12.67 mil-lion ha. under fruit and vegetablesand production of 167.79 milliontonnes in 2005-06, horticulture ac-counts for 7 per cent of the grosscropped area and about 20 per cent

of the agricultural output of thecountry. Share of horticulture toAgricultural GDP is 24.5 per cent.Horticultural products account for10 per cent of the total agri-exportsand more than 19 per cent of thelabour force. It is being planned toincrease the horticultural productionto 350 million tonnes in the nearfuture.

Growth of fruit and vegetableprocessing industry

The number of processing units

Year No.of Installed Actual CapacityUnits Capacity ProductionUtilisation

(‘000 t) (‘000 t) (%)

1991 3925 894 280 31.321992 4075 950 360 37.891993 4132 1108 469 42.331994 4270 1260 559 44.371995 4368 1402 676 48.221996 4674 1760 850 48.31997 4932 1910 960 50.261998 5112 2040 910 44.611999 5198 2008 940 46.812000 5293 2100 980 46.672001 - 2110 990 46.92CAGR (%) 3.68* 10.04* 13.29* 2.95*

Significant at 1 per cent probability

Processed F&V products Share in totalexported processed F&V Growth rate (%)

products (%)

Qty. Value Qty. Value

Dried and preserved vegetables 60.17 52.35 18.77 21.43

Mango pulp 15.16 20.57 13.70 19.98

Pickles and chutney 11.20 8.24 15.93 16.64

Other processed F&V 13.46 18.84 10.39 13.96

Total processed F&V products 24.97* 43.58* 16.03 19.04

Share in total F&V export, Data source: APEDA Export statistics


and the installed capacity are in-creasing at a compound growth rate(CGR) of 3.68 per cent and 10.04per cent per annum respectively.However, the actual capacityutilisation is only 47 percent.

Among the components of pro-cessed fruit and vegetable productsbasket, dried and preserved veg-etables accounts for the highest at60 per cent followed by mango pulp(15%), pickles and chutney (11%)and other processed fruit and veg-etables (13%).

Export performance of pro-cessed fruits and vegetables

The analysis of data for exportperformance of pro-cessed fruits and veg-etables indicatedthat between 1993-94and 2004-05, the to-tal processed fruitsand vegetables, con-sisting of dried andpreserved vegetables(60%), mango pulp(15%), pickle andchutney (11%) andother processed fruitsand vegetables (13%)grew at a rate of16.03 per cent inquantity and 19.04per cent in value. Theexport earnings fromprocessed fruits and vegetables in-creased from Rs.268.48 crore in1993-94 to 1463 crore in 2004-05and its contribution to total fruit andvegetables export has increasedfrom 20 per cent to 25 per cent inquantity and 41 per cent to 44 percent in value thereby indicating ashift towards processed products.Dried and preserved vegetables reg-istered a significant growth of 18.77per cent and 21.43 per cent. Mangopulp grew at 13.7 per cent and19.98 per cent. While pickle andchutney has grown at a rate of15.93 per cent and 16.64 per cent,other processed fruit and veg-etables registered significantgrowth of 10.39 per cent and 13.96per cent in quantity and value re-spectively. Besides, processed

grapes, guava products, onion prod-ucts and tamarind products haveshown good progress in the inter-national markets.

All these indicate that exportprospects are bright for processedfruits and vegetables products in theinternational market.

B. FLOWERSFlowers occupy an important

place in Indian society, often sym-bolic of beauty, love and tranquility.Traditionally, flowers have beenused for worship and have specialstatus symbolizing auspiciousomen, there by becoming indis-pensable in all festive occasions,

marriages, religious ceremoniesand social functions. One of the tra-ditional and most common uses offlowers like jasmine andcrossandra is to adorn the hair doof women, mainly due to their aes-thetic value. Besides this, flowersappeared to have been recognizedfor their economic value as well,both as high value crops andthrough value addition in process-ing as Indian heritage in perfumerygoes far beyond the ancient civili-zations. Use of flowers for vasepurposes, arranging in bouquetsand for gift purposes is commonlyreferred to as the ‘non-traditionaluse’, which is of recent origin un-der Indian conditions. Increasingmodernization and urbanization inIndia has enhanced the ‘non-tradi-

tional use’ of flowers and has ac-corded an industry status to flowercultivation in the peri-urban areasand their cultivation underpolyhouse conditions popular as‘Hi-tech Floriculture’.

Although the cultivation of mod-ern flowers like hi-tech roses, ger-beras, carnation, gladiolus, orchidsand anthuriums have better incomeand employment prospects, thecapital intensive nature of their cul-tivation and the presence of a num-ber of uneconomical farm holdingsize farms, have in fact preservedthe cultivation of traditional flowersunder open field conditions, suchas cultivation of rose, chrysanthe-

mum, marigold,crossandra, aster andtuberose, especiallyfor domestic markets.

Status of floriculturein India

Any effort at ana-lyzing the status of flo-riculture in India wouldget restricted due tothe scarce and oftenunreliable nature ofstatistical informationabout this sector. Asper the most recentfigures available(2006-07), the areaunder floricultural

crops has increased to 145600hectares with a production of 7.78lakh tonnes of loose flowers and3650 million number of cut flowers/spikes against the less than 31,000ha and 1.48 tonnes of loose flow-ers and 22 lakh cut flowers duringearly nineties. Area under flowershas been growing at a rate of 6.33per cent per annum. Production ofloose flowers registered a growthof very high magnitude of 9.21 percent in case of loose flowers and25.33 per cent in case of cut flow-ers. Tamil Nadu ranks first in areaaccounting for 18 per cent of thetotal flower area, followed byKarnataka (15%), Andhra Pradesh(15%), West Bengal (13%) andMaharashtra (10%). Thus, thesefive states together form the flower


growing belt accounting for about71per cent of the total area underflowers.

Export of flowersWith the changed policy

environment, export orientedfloriculture is gaining momentumand the export of floricultureproducts has increased from a mere15 crore in 1991-92 to about 653crore in 2006-07. It may be notedthat the domestic flower tradeworks out to over Rs.500 crore,which is indicative of the relativesignificance of traditional flowers forthe Indian economy, despite thegrowing market for the modernflowers. It may also be noted thatthere has been a significantincrease in the earnings from exportof dried flowers which suggests thegrowing awareness about the highdemand and low cost dried flowerindustry in India.

C. MAJOR CONSTRAINTS INHORTICULTURE SECTOR

Horticulture sector, despitedoing well, faces a number of con-straints which come in the way ofits development. The following aresome of them.

Production related constraints� Low productivity of horticulture

crops – The productivity of fruitand vegetables has been grow-ing at a very meager 0.14 percent and in case of fruits, thegrowth has been negative dur-ing the last decade.

� Inadequate supply of qualityplanting material

� Several unresolved chronic dis-orders – malformation, spongytissue, irregular bearing inmango, citrus die back, guavawilt, papaya ring spot virus,bud necrosis in watermelon,bacterial wilt and blight inpomegranate, bacterial wiltand leaf curl virus (TLCV) intomato

� Losses in the produce due toseveral biotic and abioticstresses

Marketing related constraints

� Post harvest losses up to 25per cent due to improper postharvest handling, lack of postharvest infrastructure like pre-cooling units, packing units,cold storages and processingunits

� Wide price fluctuations� Less than two per cent of the

fruits and vegetables is pro-cessed.

� Capacity utilization in the ex-isting processing units is lessthan 50 per cent

� Lack of availability of suitableprocessing varieties

Export related constraints� Less quantity (30-40%) of the

produce is suitable for export� Only a few varieties are suitable

for export (Mango, Grapes,Pomegranate and Onion)

� Less than one per cent of thefruit and vegetables producedin the country is exported

� Inadequate infrastructure facili-ties like good road, pre-cool-ing and cold storage facilities,packing and processing units,

� Non-tariff barriers to trade likeSPS, EuRep Gap certification,VHT and irradiation (mango)in case of Japan and USA

� High air freight and need fordevelopment of protocols forlong distance sea shipment.

� Lack of proper training facilityon MRL, production, marketingand export aspects

� Import duty on Indian flowers byEU.

D. R&D INITIATIVES TO OVER-COME THE CONSTRAINTS

Realising the importance of re-search to overcome some of thepertinent problems, several researchinstitutes have been established.Research institutes like Indian In-stitute of Horticultural Research(IIHR), Bangalore; IIVR, Varanasi;CPRI, Shimla; NRC on Banana,Trichy; NRC on Grapes, Pune; NRCon Orchids, Pekiyong; NRC on On-ion and Garlic; Gururajnagar; NRCon Pomegranate, Solapur; NRC onMedicinal and Aromatic Plants,

Anand and CIPHET, Ludhiana havebeen entrusted with the responsibil-ity of conducting research and comeout with solutions to the problems.Some of the technologies developedby the Institutes have been useful inthis direction. Role played by IIHR,Bangalore in the development ofhorticultural sector was brought outin Murti and Gajanana (2008).

E. FUTURE PROSPECTSThe horticultural sector has been

doing well over the years. In orderto achieve the targeted growth of 4per cent in agriculture, it is crucialthat horticulture sector performswell. On the production front thoughgrowth has been achieved muchremains to be done and highergrowth is envisaged. On the mar-keting front, the situation is not atall encouraging and the innovationsbrought out of late have to reachthe majority at the earliest. Export,though looks brighter, the propor-tion of horticulture productionreaching the international markethas been quite negligible. The fruitand vegetable processing industryhas been faced with the problemsof quality raw material, capacityutilization, transfer of technologybeing difficult due to majority of theunits being in cottage and homescale sector. Further, less than twoper cent of the total production offruits and vegetables is being pro-cessed. The technologies devel-oped by research institutes wouldhelp overcome the constraints inthe horticulture sector. The recentinnovations, if properly utilized,would help overcome the problemsof marketing. Further, demand forhigh value crops like fruits and veg-etables has been increasing andthe market – both domestic andexport – is expanding. Consump-tion habits and life styles arechanging with increased incomesand the market should respond tothese changes. The farmers shouldtake advantage of these changesand contribute, in turn, for the de-velopment of the horticultural sec-tor.

IIHR , Bangalore


GROW BIOFUEL IN A SUSTAINABLE,

ECONOMICAL AND ECOFRIENDLY MANNERDr TP Singh1, Dr Mohar Singh2 and Dr SK Sharma3

Biofuel has the potential to increaseenergy security, create new eco-nomic opportunities in rural areas,reduce local pollution and emissionof greenhouse gases. The sectoralso generates a significant numberof jobs. The ethanol industry is cred-ited with providing more than 200,000jobs in the US and 500,000 jobs inBrazil.

Energy security has been a hugechallenge for India, which has 17 percent of world’s population but lessthan 1 per cent of known oil and natu-ral gas resources. We still importnearly 78 per cnet of thecrude we need. Then thereare environmental issues.Oil is a fossil fuel (foundunderground) and burningof any fossil fuels adds topollution. So we need bio-fuel-greener alternatives,fuel grown above ground.We also need to better le-verage the usage of elec-tricity. Railways are in thebest position to do so,while a fillip to hybrid carscan help.

Out of 55 million ha ofwasteland available in thecountry, wasteland avail-able for Jatropha cultivation underNational Mission on Bio-diesel forJatropha Plantation has been esti-mated at 40 million ha which is al-most 73.51 per cent of the total waste-land availability of the country. Amongthe tree born oil seeds the trees thatenjoy maximum prominence forbiodiesel production in India includeJatropha curcas and Pongamia. Thestates that have seriously taken upJatropha cultivation in the country in-clude-Orissa, Uttar Pradesh,Chhattisgarh, Rajasthan, MadhyaPradesh, Uttarakhand, Tamil Nadu,Gujarat, Jharkhand and North east-ern states. The government has de-cided to use non-edible oil from Jat-ropha curcas seeds as bio-dieselfeedstock. Bio-diesel can act as a de-

fensive tool for India against energysecurity and climate change; and atthe same time help in contributing torural development. But this potenti-ality has not yet been fully exploredparticularly due to lack of proper policydirectives, absence of a central boardand a monitoring agency on Bio-fuel.In spite of the tremendous potentialin this sector, the Bio-fuel companies-both public and private sector alongwith the farmers undergoing Jatro-pha cultivation are facing lot of un-certainties due to slow developmentsin government proceedings. The Min-

istry of New and Renewable Energyhas been designated as the NodalAgency for overall coordination relat-ing to the development of Bio-fuel inthe country and preparation of a na-tional Policy on Bio-fuels.

Bio-fuels (ethanol from sugar-cane) in vehicles have a significantcontribution in Brazil reducing oil con-sumption by nearly 40 per cent. TheUS has successfully tried ethanolform maize and bio-diesel from soy-bean. India has the best chance withbio-diesel from Jathropa seeds. Wehave a mandate of mixing 5 per centof petrol with ethanol. There is an ur-gent need for India to focus on alter-native energy and leverage usage ofelectricity in both public and privatetransport. Since hardly any solutions

have been explored so far, possibili-ties abound. Many solutions are infront of our eyes-solar energy, bio-fueland green buildings. What is lackingis an initiative that has to come fromthe government and must be takenup by the private sector as well as thecitizens. Power sector reforms needto be stepped up. Pricing is crucial,otherwise private players will be re-luctant to invest.

Ethanol will come from agri-wasteIn India ethanol is manufactured

from sugarcane even though it affectsthe country’s sugar pro-duction. The US and theUK use corn kernels andwheat that happen to betoo valuable food prod-ucts, and therefore unfea-sible options for India. TheUS also uses soybean,Malaysia palm oil andEurope sunflower to ex-tract biodiesel but all thatis unviable for India, con-sidering its shortage ofedible oils. Our best op-tions remain non-edibleoil seeds like jatrophaand pongamia besidesnewer technologies that

use agricultural waste.

New technology could lower cost ofproduction

Next generation cellulose technol-ogy can extract ethanol from wood,straw and even crop residue accord-ing a recent assessment of India’sBiofuel Industry by UNCTAD. Thisprocess is complex and expensive,but work is being done on biotechno-logical innovations to make it moreaffordable. In case of China, cellulo-sic technology could lower cost ofproduction to as little as $0.60 pergallon, making it the cheapest biofuelin the world. Other energy efficientproduction methods like membraneseparation can further bring down theproduction cost, the report adds. New


skid mounted technology makes itpossible to quickly set up a 9,000tonnes per year biodiesel plants ascompared to the large 80,000 tonesper year plant being set up in Indiafor demonstration purposes. Anothersuccessful technology if FischerTropsch that converts biomas to die-sel. Biomass is first converted tosyngas that is further converted intodiesel. The final product consists of80 per cent diesel and 20 per centnaphtha. The utilization of thebyproducts of biodiesel can furtherbring down the cost of production andadd to its economic viability. There isa need to develop ways to detoxifythe meal cake in a cost effective man-ner so that it can be used as fertilizer.Technology for purifying glycerol, an-other byproduct, also needs to bedeveloped. India’s biofuel researchremains in its infancy. The area un-der generally improved trees also beincreased for better quality and quan-tity of oil. A report by the energy andresource institute illustrates an ex-ample of the Karnataka Governmentwhere a 10 per cent blend of Karanjaoil was used to run two new buses.The trial run found an overall increaseof 12.5 per cent in mileage and a sav-ing of Rs. 3 per litre by using the blendover diesel. Unlike hydrogen fuel celltechnology, biofuel technology is wellwithin our reach. With a little moreresearch and right policies, we mightbe able to grow our fuel in a sustain-able, economical and environmentfriendly manner.

Rajasthan to lease land to growjatropha

The Rajasthan government de-cided to lease out 48-49 lakh hect-ares of barren land to various organi-zations, including private companies,to cultivate jatropha (Ratanjot) andkaranj plants for producing biofuel.CM confirmed that proposals for pro-ducing biofuel have been receivedfrom various companies like Reli-ance, Indian Oil and Hindustan Pe-troleum.

Field to the wheelSome important activities are as:1. Plantation

Jatropha, the wonder plant, is alarge shrub/small tree that producesseeds with oil content upto 37 per

cent. These drought resistant peren-nial plants grow easily with minimalinputs or management. In addition,they are valued for crop protection asthey prevent wind/water erosion, arenot browsed by animals and have a50 year life span.

2. ExtractionIts yield begins from the third year

and continues for 25-30 years. Theannual yield ranges from 0.5 to 12tonnes. Seeds once dry, are sepa-rated, cleaned and processed.

3. ProcessingInvolves removing glycerin and

biodiesel by adding a catalyst. Oncethe mixture settles, glycerin is left atthe bottom and biodiesel floats to thetop. The byproducts include a goodorganic fertilizer and an insecticideoil.

4. BlendingOnce separated, biodiesel is

washed with warm water, dried andsent to storage. This biodiesel con-tains no petroleum, but can beblended or mixed at any level withpetroleum to create a biodieselblend.

5. Retail saleBiodiesel can easily operate in

compression ignition and hence re-quires little or no engine modifica-tions upto 20 per cent blend. Accord-ing to a National Renewable EnergyLaboratory study, use of biodieselreduces CO2 emission by 78 percent.

AdvantagesBiofuel has the potential to in-

crease energy security, create neweconomic opportunities in rural ar-eas, reduce local pollution and emis-sion of greenhouse gases. The sec-tor also generates a significant num-ber of jobs. The ethanol industry iscredited with providing more than200,000 jobs in the US and 500,000jobs in Brazil.

DisadvantagesDisadvantages include additional

land use, as shifting food crops tofuel production could further tightenfood supplies and raise prices. Theireconomic sustainability is also un-der debate. An other related disad-vantage is the need to transportbiofuel.

ConclusionThe United States and some Eu-

ropean countries are producingbiodiesel as a transport fuel by con-verting surplus edible oil such assoybean oil, sunflower oil and rape-seed oil. A biofuels mission focusingspecifically on pongamia andjatropha is also launched. India’sbiofuel research remains in its in-fancy. The area under generally im-proved trees also be increased forbetter quality and quantity of oil. Un-like hydrogen fuel cell technology,biofuel technology is well within ourreach. The ethanol industry is cred-ited with providing more than 200,000jobs in the US and 500,000 jobs inBrazil. With a little more research andright policies, we might be able togrow our fuel in a sustainable, eco-nomical and environment friendlymanner.

1&2 Senior Scientist, NBPGR; 3 Director,NBPGR


Focussed CropsFocussed CropsFocussed CropsFocussed CropsFocussed Crops


Technology led Horticulture

Development for Inclusive GrowthIndian agriculture has achieved

rapid strides in the last decades bytaking the country from food scarcityto self sufficiency. However, the GDPcontribution has declinedsignificantly from 45.5% in 1950-51to 18% in 2008-09. Due to positiveinterventions, in terms of variousmissions, agriculture has achievedthe growth rate of above 4%consecutively for the last two years.Critical examinations of agriculturalgrowth clearly indicate thathorticulture has contributedsignificantly. One of the significantdevelopments in horticulture is that ithas moved from rural confines tocommercial production, and thischanging scenario has encouragedprivate sector investments. Thesector contributes 29.5% to GDP ofagriculture and has achieved thegrowth rate of 5-6% during the lastdecade. Horticulture, which was apleasantry before independence, hasemerged as a core sector inagriculture passing through thevarious phases. Investments madein horticulture during three planperiods have been highly productivein transforming agrarian economy inmany of the states.

Scenario of Indian HorticulturePast trend in development has

been satisfying in terms oftechnological adoptions, production,availability and export of horticulturalproduce, and this trend has beenmarked as “Golden Revolution”. Theexpansion of horticulture in non-traditional areas resulted in increasein area under fruits from 3.8mha in1999 to 5.81mha in 2008 with anincreased production of about 20mt.The area under vegetable cultivationalso showed a similar increase of1.85mha from 1999-2008 with anincreased production of 34.67mt.India has emerged as second largestproducer of fruits and vegetables andoccupies first position in several

horticultural crops and is the secondlargest producer of fruits (62.8mt)contributing 11% to the global fruitproduction. The area under fruit cropsin India is 5.81mha with a productionof 62.86mt. India occupies first placein the production of mango, banana,papaya, pomegranate, sapota andaonla. Vegetables occupy 7.73mhawith total production of 122.26mt andproductivity of 15.82t/ha. Presently,India’s contributes 13% to the worldvegetable production. Productionand export of flowers have increasedmanifold and the country has a majorstake in global trade of spices andcashewnuts. Export of medicinalplants, fruits and vegetables have

also exhibited rising trend. Admittedly,the sector is moving dynamic despitenumerous challenges andshortcomings and is in crucial phaseof development.

Fig. 1. Increase in production of horticultural crops over decades

Dr HP Singh


Challenges in HorticultureProductivity of many of

horticultural crops continues to below. Quality of produce needsimprovement, resource use efficiencyrequires up gradation, post-harvestlosses continue to be high and thereis growing regional disparity inproduction and use of technologies.The Government has addressedmany of these constraints with addedthrust in last three plan period.Technology Mission for IntegratedHorticulture Development in North-East Region including Sikkim andHimalayan states has createdawareness across the country.Subsequently national horticulturalmission and micro irrigation havebeen launched.

RESEARCH EFFORTSInfrastructure for technologydevelopment

The horticultural research in thecountry is being carried out at tenICAR institutes (with 24 regionalstations), 6 Directorates and 7

National Research Centres (onmajor crops). Area specific, multi-disciplinary research is also beingconducted under 13 -AICRPs eachon Tropical, Sub-Tropical, Arid Fruits;Vegetables, Potato, Tuber Crops,Mushroom; Floriculture, Medicinaland Aromatic crops, Betelvine,Palms, Cashew, and Spices at 251centres located at various researchInstitutes, and State AgriculturalUniversities. In addition, several network projects are now in operation.Research on horticulture is alsobeing undertaken at Departments ofHorticulture in 34 AgriculturalUniversities and three full fledgedUniversity of Horticulture and Forestry.The Horticulture Division of ICAR isresponsible for national levelplanning and promotion of majorresearch programmes inhorticultural crops envisaging theemerging scenario.

Improvement in cultivarsBiotechnological tools are used

in many crops such as brinjal, tomato,capsicum while association

mapping (linkage disequilibrium) isused in case of perennials such asblack pepper, cardamom andcoconut. Gene pyramiding toconverge useful genes in one background variety of commerce is themainstay of biotechnologicalresearch and is in progress insolanaceous vegetables. A largenumber of transgenics with Cry-l ABgene have been produced and areunder intensive evaluation.

Quality planting material production:Micro-propagation techniques in

various fruits and spices are veryeffective in production of healthyplanting material. Banana and potatoare the success stories for qualityplanting material production in largescale. For cleaning of infectedmaterials in citrus, shoot tip graftingtechnique has been standardizedand serpentine method of qualityplanting material production hasbeen developed in black pepper. Toensure the quality of planting materialthere is need for “seed and plantingmaterial health managementsystem”.

Nutrient Dynamics and itsmanagement

Monitoring soil health and leafanalysis in fruit crops will be usefulto ensure a balanced nutrientmanagement and safeguard againsthidden hunger as well as luxuryconsumption by horticultural crops.Use of liquid forms of fertilizersthrough fertigation and use of bio-fertilizers, VAM fungi, biological Nfixers and other beneficial microbial

Commodity Production (mt) Growth

1998-99 2011-12 2020-21 rate (%)

Fruits 44.04 81.00 98.00 7.8

Vegetables 87.53 185.00 220.00 9.2

Spices 2.91 5.50 650.00 8.0

Coconut 10.27 20.00 24.00 8.4

Cashew nut 0.46 1.70 2.00 25.1

Cocoa, other 3.00 6.80 9.50 11.1

Total 146.82 300.00 360.00 9.0

Table 1. Projected demand of horticultural crops during 2020-21

Source: Singh, HP, 2007, Indian Horticulture, 52(4)


agents also need to be optimallyused to attain an efficientmanagement. Besides, harnessinggeographical information system(GIS) using remote sensing (RS) toaddress farmer/site specificmanagement also assumessignificance.

Value addition and post harvesttechnology

Value addition throughdehydration of fruits and vegetablesincluding freeze drying, dried andprocessed fruits, vegetables andspices and fermented products playan important role in horticulturalcrops. Development of new productslike juice punches, banana chips andfingers, mango nectar and fruit kernelderived cocoa substitute, essentialoils from citrus, fruit wines,dehydrated products from grapes,pomegranate, mango, apricot andcoconut, grapes and fruit wines,value-added coconut products likesnowball tender coconut, coconutmilk powder and pouched tendercoconut water (Cocojal) etc. aregetting popular day by day. Improvedblending/ packaging of tea and coffeehave opened new markets.Consumer friendly products likefrozen green peas, ready to use saladmixes, vegetable sprouts, ready-to-cook fresh cut vegetables are othermajor retail items. Low cost eco-friendly cool chamber for on farmstorage of fruits and vegetables hasbeen developed. For preventing thepost harvest losses proper storage,cold preservation, packaging and

transport methodswith Hazard analysisCritical Control Point(HACCP) norms haveto be given morethrust.

Small policyinterventions make acomplete changeleading to effectiveutilization oftechnology. Fruitb e v e r a g e s ,especially wineattract excise duty,which has beenconstraint. Withchange in policy inMaharashtra and Karnataka forgrape wine, there is an appreciablegrowth in vine grape production.Similar policy therefore is needed forall wines produced from fruits.

Horticulture MechanizationThere is a scope to introduce

variety of hi-tech mechanizationoperations in horticulture for nursery

m a n a g e m e n t ,transplantation offloricultural plants ingreenhouses as wellas other plants,h a r v e s t i n g ,transporting, gradingand packingoperations. Harvesterfor mango, lime,sapota, guava,cassava & potato,cassava chippingmachine, potatochipper, shell firedcopra dryer, solar-cum-electric dryer,

potato digger, raised bed former-cum-transplanter-cum-planter forvegetable crops, coconut deshellermachine and many others.

DEVELOPMENT OFHORTICULTURE:

The Horticulture Division in theDepartment of Agriculture andCooperation, Government of India isvested with the responsibility ofoverseeing the overall accelerateddevelopment in the nationalperspective. The Division has the

support of two Boards,C o c o n u tDevelopment Boardand NationalHorticulture Board,Directorate ofArecanut & SpicesDevelopment Directorateof Cashewnut &Cocoa Development,National Committeeon PlasticultureApplications inHorticulture (NCPAH).Besides the above,support for thed e v e l o p m e n tespecially for

marketing and export is also providedthrough Agriculture Produce ExportDevelopment Authority (APEDA) andSpices Board in the Ministry ofCommerce.

Schemes for integrateddevelopment of coconut, post-harvest management, marketing andexports, capital investment subsidyfor construction/ expansion/modernization of cold storages forhorticultural produce, humanresource development in horticulture,technology mission for integrateddevelopment of horticulture in theNorth-Eastern Region includingSikkim and Himalayan states wereimplemented during the Ninth Plan.National Horticulture Mission waslaunched during X Plan which hasbeen appreciated and has impactedthe development of horticultureacross the country. y

FUTURE CHALLENGES ANDINITIATIVES

Measures to adapt to climate


change-induced changes are criticalfor sustainable production. Highconcentration of CO2 may bebeneficial if cultivars andtechnologies are made to respondto the situation. It is pertinent tomention here that Grape has been atemperate crop but with themanipulation in plant architecture andits management it has been possibleto grow grapes in tropical conditionswith highest productivity. The pastexperiences thus gives optimism thatwith appropriate support to research,the challenges of climate changecould be faced without its negativeimpact.ü Dominance of Small farmersü Seed and Planting Material

Health Managementü Water Productivity Enhancementü Options to use Technologiesü Organic Horticulture

REORIENTATION OF RESEARCHINITIATIVESØ Increasing the value of

production by reducing variabilityin yield, quality, reducing croplosses and increasingmarketability

Ø Develop system for productiveuse of water by increasing thewater and nutrient use efficiency

Ø Develop alternative to chemicalsand fertilizers, integratedmanagement and decisionsupport systems

Ø Develop the production systemsthat minimize wastes andmaximize recycling.

Ø Improve the understanding ofinteractions between nativeecosystems and productionsystems and develop bestpractices to conservebiodiversity

Ø Develop production and post-harvest technologies to improveproduct quality and minimizeenvironmental impacts

Ø Develop new innovativediagnostic techniques for rapid,accurate and cost effectivedetection of high impact pestsand diseases

Ø Understand social needs ofcommunities and build thecapabilities for practice change,and for effective utilization ofresources and adoption oftechnology

Ø Facilitate accelerated adoption ofimproved technologies and bestpractices and respond to needsincluding bio-security threats

Ø Upgrade NRC as directorate foreffective outreach programmes.

OPPORTUNITIES IN HORTICULTURE-LED INCLUSIVE GROWTHHorticulture could prove a primemover for inclusive growth andprovide opportunities. Theopportunities are for:· Research and development

· Seeds and planting materials· Inputs like – fertilizers,

pesticides, tools, irrigationsystem

· Tools for mechanization· Harvesting and handling· Post harvest management and

value addition· Decision support system.

ConclusionPast efforts have proved beyond

doubt that horticulture is the bestoption to improve livelihood, food andnutritional security with enhancedemployment and increased incomethrough value addition. Technology-led development addressing issuesof production, consumption and policysupports provide ample opportunityto harness the potential. Sustainedefforts are needed to improvecompetitiveness, enhance theefficiency of production system andestablish linkages with variousstakeholders to achieve sustainabletransformation. Whatever efforts andinvestments that have been made, ithas been highly productive so far butthe future scenario with the climatechange, declining land and water willbe different. Given the time, themanpower and the financialassistance, our Indian scientist cantake this challenge of the climatechange and can avail theopportunities in future and definitelyemerge as a leader not only inhorticulture but in total agriculture.The technology of protectivecultivation can give yield more than3-4 times from the same area.Similarly, micro-irrigation enables togrow the crop with 50 per cent lesswater. Thus changes could beaddressed, but will need investmentin research and development andalso enabling policy. Finally achievingenhanced productivity, profitability,equity and improving the quality of lifeof people through innovativehorticulture shall be our set goal.

DDG (Horticulture),ICAR, Pusa, New Delhi


The Yellow Revolution on anvilDr DM Hegde and Dr RVenkattakumar

IntroductionOilseeds account for 1.4% of

GDP and 7% of value of all agricul-tural products (2004-05). About 14million farmers are involved in oil-seeds production and a million inprocessing. Vegetable oils contrib-ute 12-13% of dietary energy of theIndian population. They also ac-count for about 1.5-1.7% of nationalexports and about 15-17% of agri-cultural exports in the country(2006-07). The country ranks firstin the production of castor, saf-flower, sesame and niger, thirdin rapeseed-mustard, fourth inlinseed, fifth in soybean andseventh in sunflower in theworld. In terms of area, Indiaranks first in castor, safflower,groundnut, sesame, rape-seed-mustard and niger, thirdin sunflower and linseed andfifth in soybean in the world.India has produced a recordof 29.76 million tonnes of oil-seeds during 2007-08 from anarea of 26.69 million ha andproductivity of 1115 kg/ha(2007-08). However, the pro-duction is expected to declineduring 2008-09. The self-suf-ficiency in edible oil produc-tion fluctuates around 55-60%due to steady increase in theper capita oil consumption.As per the recent projections,the per capita consumption ofvegetable oil likely to rise to12.60, 14.57 and 16.38 kg/haby 2010, 2015 and 2020 re-spectively. This vegetable oilrequirement amounts to 14.8,18.3 and 21.8 million tonnesrespectively by 2010, 2015and 2020. Assuming an aver-age oil recovery of 30% frommajor oilseeds and proportionof different oilseeds constantin the coming years, thecountry needs to produce at

least 44.8, 55.5 and 66.0 milliontonnes respectively by 2010, 2015and 2020. Given that the oilseedsproduction was 30 million tonnesin 2007-08, the country needs toalmost double the oilseeds produc-tion in the next 12 years requiringan annual growth rate of above 6%.Also, the country has potential todouble the current production ofvegetable oils from supplementarysources.

Research scenarioBreeding strategies on major

abiotic (drought) and biotic (foliardisesses and aflatoxin con-tamination) stresses, eco-regional adaptation and en-hanced yield potential are tobe addressed. The manage-ment practices should be lo-cation-specific, variety-spe-cific and farmer-specific. In-formal seed sector must bestrengthened to meet thehuge demand for qualityseed of groundnut. Rape-seed-mustard are the pre-mier winter oilseed crops inIndia. Nearly 140 improvedcultivars have been bred inthe last few decades. CMS-based hybrids are now com-mercialized and these prom-ise substantial productivityenhancement. Success hasalso been achieved in selec-tive modification of fatty acidcomposition as well as mealglucosinolates. Except forwhite rust, attempts to breeddisease or insect resistantcultivars have not been verysuccessful. Inspite of re-lease of CMS-based hybridsin mustard, there is a needfor continuous focus on im-proving available CMSsources and enhancing het-erosis.

The yield levels of soy-bean have been increased

Crop Production (‘000 t)2007-08 2008-09*

Groundnut 9183 7304Castor 1054 1124Sesame 757 694Niger 110 115Soybean 10968 10153Sunflower 1463 1127Rapeseed-mustard 5834 7315Linseed 163 135Safflower 225 157

Total 29755 28127

Table 1. Oilseeds production in India

*-3rd advanced estimates, Agricultural Statistics Division,Department of Agriculture and Cooperation, 2009

Dr DM Hegde


by 60% in the last 60 years and3900 varieties have been releasedworld wide. Besides molecular ap-proaches, new conventional ap-proaches like hybrid soybean andpopulation improvement need bet-ter attention for further improvementin the genotypes available.The average yield of sunflower, 600-700 kg/ha in India is much lowerthan the world average. The cropimprovement initiatives in India havefocused on yield improvementthrough superior hybrids and open-pollinated varieties. The limited ge-netic variability in workinggermplasm has restricted geneticadvances emphasizing the need foridentifying heterotic gene pools andincreasing diversityby the infusion ofgenes from wildrelatives. Consider-ing the adverseecologies in whichsunflower is culti-vated, breeding re-search should ad-dress to geographi-cal or regional re-quirements. How-ever, seed yieldand oil content willcontinue to be im-portant traits incrop improvement.

I nsesame, develop-ment of hybridsshould receive pri-ority with due at-

tention for searching a genetic-cy-toplasmic male sterility mechanismor linked markers. Attention shouldbe paid for tolerance/resistance toprolonged drought, excessive mois-ture/stagnant water, salinity and al-kalinity stresses. Genotypes withpositive response to higher inputsof fertilizers should be developed.Studies to develop reliable, repro-ducible screening methods for thekey diseases/insect pests and abi-otic stresses are required. A break-through in breeding for resistanceto phyllody will have the most sig-nificant effect on sesame yields,especially in Southeast Asia.

Available safflower cultivarscould enhance productivity level of

safflower by about 30-40%. How-ever, the average productivity of saf-flower in the country is still low. Lim-ited genetic diversity for agronomi-cally important traits, low geneticadvance, variation of expression ofindividual traits as well as yield indifferent environments, and bioticand abiotic stress conditions aresome of the major constraints forachieving quantum jump in produc-tivity of safflower.

The cultivation of linseed underinput-starved condition, utera sys-tem of cropping and major linseedgrowing areas under dryland/mois-ture stress situations are the ma-jor impediments for the low produc-tivity at national level. The valueaddition properties of linseed withrespect to industrial and medicinalneeds to be emphasized.

In castor, special focus is re-quired for the development of hy-brids and varieties resistance toabiotic stresses i.e., drought andsalinity, highly stable and diversepistillate lines, resistant to bioticand abiotic stresses and to develophigh yielding hybrids/varieties suit-able for various situations.

India is endowed with vast po-tential of oilseeds of tree origin likesal, mahua, simarouba, jatropha,karanja, etc., being collected andcrushed for vegetable oil. The re-

Year Edible oil Import of Per capita Self-Production edible oils consumption sufficiency(‘000 t) (‘000 t) (%)

2000-01 55.0 41.8 9.4 57

2001-02 61.3 43.2 10.0 59

2002-03 51.5 43.6 8.8 53

2003-04 75.8 52.9 10.5 59

2004-05 75.9 45.4 10.1 63

2005-06 91.0 54.3 11.6 63

2006-07 80.0 62.0 11.2 56

2007-08 91.4 51.8 12.2 64

Table 2. Domestic production, imports, per capitaconsumption and self-sufficiency of edible oils in India

Crops FLD average National Yield National Expectedyield (1996-97 average yield gap (%) average productionto 2006-07) (kg/ha) production (‘000tonnes) (kg/ha) (2006-07) (‘000tonnes)

(2006-07)

Groundnut 2249 866 160 4863.5 12628.4Rapeseedmustard 1405 1095 28 7437.8 9540.0

Sunflower 1492 567 163 1227.5 3229.9

Safflower 1272 637 100 240.3 479.5

Soybean 1819 1063 71 8850.8 15149.9

Sesame 644 363 77 618.4 1096.9

Niger 489 258 90 120.9 229.3

Castor 1840 1213 52 762.3 1156.3

Linseed 949 385 147 167.9 414.2

Overall 24289.4 43924.4

Table 4. Exploitable yield reservoir in oilseeds (1996-97 to 2006-07)

Yield gap =Increase in FLD average yield over national average yield expressed in percentage; Expectedproduction=Expected production, if yield gap is bridged through complete adoption of improved practices.


search efforts should be directedtowards identification of superiorclones/genotypes, producing bet-ter quality and quantity of the oil,high seed yield and possessingsynchronized maturity.

For oil palm, programmes needto be focused on enrichment ofgermplasm base, increasing the oilyield per unit area, developing cul-tivars that perform well under mois-ture stress conditions and thetypes that are easily amenable forharvesting. For coconut, still effortsare needed to strengthen thegermplam base to obtain variabilitywith drought tolerance, pests anddisease resistance, to develophighly profitable and location-spe-cific coconut-based cropping andfarming systems and labour savingmachineries in crop management.Research and extension efforts areto be strengthened in cotton to in-crease the oil and protein contentof the seed and development ofgossypol-free cotton seed, apartfrom popularizing the scientific pro-cessing of cotton seed, so that thequantum of oil extracted from thiscrop can be doubled.

The crop production technolo-gies in oilseed crops especiallyagronomic technologies have to berefined. Suitable crop managementstrategies based on the use of in-novative agro-techniques for en-

hanced oilseed production, for en-hanced resource use efficiency,crop physiological approaches,enhancing agronomic performancethrough improved machinery andother non conventional interventionsfor yield enhancement are some ofthe key areas for oilseed crop re-search. The research potential inareas like nutrient and water useefficiency, nutrient interactions, roleof micronutrients, source-sink re-lationship and modification of as-similate portioning mechanisms inoilseed crop management are to beaddressed on priority basis. Devel-oping a push-pull strategy to ward-off insect pests while attracting theirnatural enemies, modification ofplant biochemistry to make theplants less attractive to herbivores,establishing crop habitat diversityand deploying eco-feast crops toencourage parasitoids and preda-tors could provide answers to someserious pest problems. Biologicalcontrol agents like pathogens,parasitoids and predators havebeen genetically improved for en-hanced performance. Application ofgenomics will also enable the iden-tification of protein that can be tar-geted by biorational insecticides.Nanotechnology is a rapidly emerg-ing technology which can be uti-lized to develop highly effective in-secticides with enhanced action.

Processing and value additionThe lack of adequate integration

between expelling units and solventextraction, and refining units alone

Crop Yield loss (%)

Insect pests DiseasesRange Average Range Average

Groundnut 3-40 6 5-59 8Rapeseed-Mustard 1-83 15 1-70 15Sunflower 12-42 24 1-90 20Safflower 20-68 30 5-40 15Sesame 10-40 20 5-30 15Niger 15-30 20 5-35 20Castor 10-50 15 5-40 15Linseed 17-49 25 5-100 30Soybean 10-50 20 10-90 15

Table 5. Yield losses due to insect pests and diseases


is costing the country in a very bigway. From a production of 141mil-lion tonnes of paddy during 2007-08, only 7 lakh tonnes of rice branoil was extracted, although therewas a potential of 14 lakh tonnes.Therefore, the strategies for in-creasing edible rice bran oil produc-tion are, to make available remain-ing 40-50% of the bran for oil pro-duction, to utilize existing stabili-zation processes so that more re-fined oil is recovered after physicalor chemical refining and to recoverhigh value by-products which haveapplication in food and allied indus-tries. This approach can yield 7lakh tonnes of extra oil valued atRs.1050 crores and by-products tothe tune of Rs.1600-2500 crores/annum. Oilseeds are primarily con-sumed for their oil content so it isnecessary to ensure the ideal fattyacid composition for specific appli-cations. Secondly, it is also nec-essary to fully exploit commercialpotential of the non-oil componentsin oilseed cake. Therefore, the de-velopmental efforts for ideal cook-ing oil for domestic and bakery ap-plications with high mono saturatedfatty acids are to be addressed. Inthis regard, the potential of valuechain for linseed to promote linseedcultivation and its utilization foromega-3 nutritional security is tobe explored. The phytochemicalsin oilseed cake and their antioxi-dant activity and their possible ap-plications as functional food are to

be addressed.

Transfer of technology and mar-keting

As per national seed plan 2005,seed replacement rate for varietiesof self pollinated, cross pollinatedcrops and hybrids should be 25, 35and 100% respectively. A large pro-portion of Indian farmers use farm-saved seeds of low yielding variet-ies. Appropriate policy environment,remunerative prices for producers,upgradation of production technol-ogy and efficient markets are es-sential to accelerate growth in oil-seeds to keep pace with growth indomestic demand. Domestic pricepolicy and domestic market andtrade policy have remained adverseto oilseed sector in most of theperiod during last three decades.There is a need for paradigm shiftin public sector transfer of technol-ogy from top-down, blanket dis-semination of technologies towardsfacilitating learning and understand-ing. The prevailing transfer of tech-nology modes and approachesneed to emphasize on learning andskill development rather on knowl-edge and technology per se whichgenerally are contextual at a giventime and space and hence limitedfor their transferability. Greater at-tention will have to be paid to infor-mation-based technologies.

ConclusionsThe oilseed sector constitutes

an important determinant of agricul-tural economy in India. The coun-try may have to almost double thevegetable oils production by 2020if it has to achieve near self-suffi-ciency. This is indeed a tall orderrequiring a growth rate in excess of6% per annum. Favourable policyframework for the oilseed sectorwith respect to processing, market-ing and trade is the basic andoverarching requirement to achieveself-reliance in vegetable oils. Givena desired policy frame work inplace, oilseeds production can beincreased to a limited extent byarea expansion through replace-ment of non-remunerative crops,extension in rice-fallows and prob-lem areas, intercropping in widely-spaced crops, as options in con-tingency planning, introduction inwater-scarce areas, diversificationof rice-rice and rice-wheat systemsand by increasing competitivenessof oilseeds through value addition.There is limited scope to bring ad-ditional area under oilseeds andbulk of the future increases in oil-seeds production has to come pri-marily from land-saving technolo-gies. This calls for giving new thrustfor improving the productivity of oil-seed crops by use of quality seed,providing protective irrigation, re-sorting to efficient crop zoning, en-hanced and integrated nutrient use,farm mechanization, efficient cropmanagement, overcoming bioticand abiotic stresses through novelapproaches and effective technol-ogy transfer to bridge yield gap. Thisrequires effective contribution by allthose concerned with oilseed sec-tor to the best advantage of oilseedfarmers to achieve self-reliance invegetable oils.

Directorate of Oilseeds Research,Rajendranagar-500030, Hyderabad


SPICES SCENARIODr VA Parthasarathy*, Dr V Srinivasan, Dr B Krishnamoorthy and Dr. M. Anandaraj

Spices, the high value and low vol-ume commodities of commerce, arethe fast growing food industry worldover. Health conscious consumersin developed countries prefer naturalcolours and flavours of plant origin tocheap synthetic ones. The estimatedgrowth rate for spices demand in theworld is around 3.19%, which is justabove the population growth rate. In-dia has been a traditional producer,consumer and exporter of spices.There are about 109 spices listed byInternational Organization for Stan-dardization and India grows about 60of these spices. During the crop year2006-07, the country produced about3944.2 thousand tons from 2410.8thousand hectares of area underspices. Of the total production, nearly9.5% was exported. Share of export

in total production varied from mere0.6% in tamarind to about 72% innutmeg and mace (Table 1). Finan-cial year 2007-08 was the year ofrecord export both in terms of valueand volume.

Trends in growth of major spicesBlack Pepper

While area augmentation hasgrown at the rate of 0.85%, produc-tion has grown at the rate of 2.38%during 1987-88 to 1997-98. Area un-der pepper has crossed the 2.33 lakhha mark during the crop year, 2003-04 and during 2006-07, the area is2.46 lakh ha with the production of69 thousand tonnes and 281kg/haproductivity. Pepper productivity in In-dia is one of the lowest in the world.The average productivity of pepper/

vine is highest around 1kg inKarnataka and lowest around 0.6kgin Kerala. In 2008-09, India exportedabout 25,250t valued Rs.413.7crores, a reduction of 28% in volumeand 20% in value over 2007-08. USAis the major importer of pepper in theworld market with an average importof about 60,000t per annum and in2008-09, USA imported 10,050t of

Area Production Productivity Qty. Value Qty. Value(‘000 ha) (‘000 MT) (kg/Ha) (M.T) (Rs. Lakhs) (%) (%)

Black Pepper 246.0 69.0 281 28750 30620 7.7 8.6 41.7Cardamom 98.2 15.7 160 650 2236 0.2 0.6 4.1Chilli 757.9 1234.1 1628 148500 80775 39.7 22.6 12.0Ginger 105.9 370.3 3497 7500 3975 2.0 1.1 2.0Turmeric 186.0 837.2 4501 51500 16480 13.8 4.6 6.2Coriander 320.8 233.2 727 20500 7462 5.5 2.1 8.8Cumin 349.0 158.4 454 26000 20150 7.0 5.6 16.4Celery - - - 3550 1321 0.9 0.4 -Fennel 43.5 61.7 1418 3575 2380 1.0 0.7 5.8Fenugreek 32.7 35.7 1093 8500 2699 2.3 0.8 23.8Garlic 150.1 710.5 4734 11500 2128 3.1 0.6 1.6Ajowan 14.5 4.4 305 - - 0.6 - -Other seeds1 17.7 10.7 605 8000 2240 2.1 0.6 74.7Clove 2.0 1.0 506 - - - - -Nutmeg 11.3 2.9 256 2100 4274 0.6 1.2 72.4Tamarind 60.6 189.2 3121 1200 3000 0.3 0.8 0.6Cinnamon 0.9 1.7 1928 - - - - -Vanilla - - - 125 1996 0.0 0.6 -Tejpat 3.8 8.3 2202 - - - - -Other spices 9.9 0.3 27 18300 4280 4.9 1.2Curry powder - - - 9500 8693 2.5 2.4 -/pasteMint products - - - 16250 110095 4.3 30.8 -Spice Oils & - - - 6250 51079 1.7 14.3 -OleoresinsTOTAL 2410.8 3944.2 1636 373750 357575 100.0 100.0 9.5

Crop/ Product Production (2006-07) Export (2006-07) Share in Export Exportas % of

Production

Dr V A Parthasarathy


pepper accounting for 40% of our to-tal pepper export. Other major buy-ers are UK (1475t), Italy (1290t),Canada (1265t) and Germany(1200t).

CardamomThe year, 1978 - 87 observed a

period of increasing trend and 1989-90 to till date a period of decline. Dur-ing 1990s, India’s production hadbeen showing a consistently increas-ing trend from 4250t in 1992-93 to7900t in 1995-96, but declined to6625t during the subsequent cropyear with a lower rate of decline. Theincreasing trend in production fromthe crop year, 1997-98 is being main-tained till date with 11,580t in the year2003-04 and 15,700t in 2006-07 from98,200 ha. India exported 750t of car-

damom worth Rs.47.27 crores in2008-09 recording an increase of50% in volume and 91% in value ascompared to 2007-08. Saudi Arabiais the major importer with 520t (69%)of our total cardamom export. Othermajor buyers are Malaysia (30t), Ja-pan (25t) and UAE (20t).

GingerArea under ginger has increased

over the years from 1970-71 to 1999-2000, with occasional fluctuationsattributing to ups and downs in price.Indian production has been steadilyincreasing from 29.59 thousandtonnes in 1970-71 to 370.3 thousandtonnes during 2006-07. WhileMeghalaya, Arunachal Pradesh,Sikkim and other NE states togetheraccounted for more than 52% of totalproduction with 26% of area underginger in the country, the region com-prising Kerala, Karnataka, Orissa andTamil Nadu accounted for the rest ofthe production with 72% area during2006-07. India exported 5000t of gin-ger valued Rs.34.8 crores in 2008-09 recording a reduction of 34% involume but 24% increase in value ascompared to 2007-08. Maximum ex-port of ginger is in the dry and pow-der forms and fresh ginger exportwhich accounts for about 50t is mainlyfrom the NE states to Bangladesh.Saudi Arabia is the major importerwith 415 t (69%) along with UK (480t)

Spice Qty (t) % Value %(Rs. Crores)

Black Pepper 25250 5 413.7 8Chilli 188000 40 1080.9 20Cumin 52550 11 544 10Coriander 30200 6 203.8 4Turmeric 52500 11 248.6 5Mint Products 20500 4 1420.2 27Oil & oleoresin 6850 1 720.5 14

Table 2. Share of major items in Indian spice exports (2008-09)

Source: Spice India, 2009, 22(7): 4-12.

Crop 2004-05 2008-09 % change in2008-09

Qty Value Qty Value Qty. Value

Black Pepper 11500 9891.5 25250 41374 119.6 318.3

Cardamom (small) 500 1852.0 750 4727 50.0 155.2

Chillies 114000 42120.6 188000 108095 64.9 156.6

Ginger 11050 4380.8 5000 3483 -54.8 -20.5

Turmeric 36000 13298.8 52500 24858 45.8 86.9

Coriander 30250 7382.6 30200 20379 -0.2 176.0

Cumin 12200 9001.3 52550 54400 330.7 504.4

Nutmeg & mace 1125 1955.8 2155 6075 91.6 210.6

Vanilla 160 2313.0 305 2670 90.6 15.4

Curry powder 6300 5193.0 13250 16375 110.3 215.3

Mint products 5350 23122.5 20500 142025 283.2 514.2

Spice Oleoresins 4560 37590.3 6850 72050 50.2 91.7& oils

Source: DASD & Spices Board, Govt. of India.

Table 3. Estimated Export of spices from India(Quantity in MT, Value in Rs. Lakhs)


of our total export. Other major buy-ers are Spain (305t) and Morocco(240t).

TurmericIndia produced 837.2 thousand

tonnes from an area of 186 thousandha with the productivity of 4.50t/haduring 2006-07. Andhra Pradesh oc-cupies first position both in terms ofaverage area and production, butfrom the point of view of productivity,Andhra Pradesh occupies the thirdposition. India exported a record high52,500t of turmeric valued Rs.248.6crores in 2008-09 with an increaseof 6.6% in volume and 58% in valueas compared to 2007-08. UAE is themajor importer with 5910t of our totalexport. Other major buyers are Iran(5335t), Bangladesh (4595t), Malay-sia (4825t) and Japan (3090t).

ChilliesIndia produces about 8-10 lakh

tonnes of Chillies per annum.Exports are of the order of 1.8-2 lakhtonnes, which is 15% of the totalproduction. The important Statesgrowing chilly in terms of productionare Andhra Pradesh (63%),Karnataka (12%) Orissa (5%),Maharashtra (4%), West Bengal(5%), Tamil Nadu (3%) andRajasthan (1%). The total productionin the country is around 12.34 lakhtonnes from 7.57 lakh ha in thecountry (2006-07). The averageproductivity in the country is around1628kg/ha. Andhra Pradesh has themaximum productivity of 3579kg/ha.

Chilly occupies the first positionin volume (40%) of spice export from

our country with second position interms of value (20%). India exported1.88 lakh t of chilly worth Rs.1080.9crores in 2008-09. Malaysia is themajor importer with 40615t of our to-tal export. Other major buyers areSrilanka (37790t), Pakistan (22375t),UAE (18815t) and USA (15680t) dur-ing 2008-09.

Tree SpicesClove, nutmeg, cinnamon,

comboge, kokum etc are the pre-dominant tree spices cultivated inIndia. The production of clove in In-dia during 2005-06 was 1003t froman area of 1981ha. Nutmeg is culti-vated in an area of 11,329ha with theproduction of 2902t. Cinnamon iscommercially cultivated in Kerala,

Karnataka and Andaman & NicobarIslands with production of 1668t froman area of 868ha.

Seed SpicesSeed spices cover about 8.72 lakh

ha with a production of 5.69 lakhtonnes annually. Coriander (3.52 lakhha), cumin (4.03 lakh ha), fenugreek(0.32 lakh ha) and fennel (0.46 lakhha) are the major seed spices grown.Major producing states areRajasthan, Gujarat, MP, Haryana,Punjab, UP, AP, Tamil Nadu,Karnataka etc.

About 80% exported is for rawseed spices and it recorded a sub-stantial increase in quantity and valueduring 2008-09 contributing to 28%in volume and 18% in value of totalspice export from India. Cumin occu-pied the first position in volume(52550t) of seed spice export fol-lowed by coriander (30200t) with avalue of Rs.544 and Rs.203.8 crores,respectively. UAE (12810t) is the ma-jor importer of cumin. The major buy-ers of coriander are Malaysia (7050t),UAE (5450t), Pakistan (3215t) andSaudi Arabia (2475t) during 2008-09.

Processed SpicesDuring 2008, 13250t of curry pow-

der blends worth Rs.163.7 croreshas been exported to UK, Saudi, UAEand USA. Export of spice oils andoleoresins has recorded an all time

Regions 1990-91 2000-01 2008-09Quantity Value Quantity Value Quantity Value

America 13.2 19.2 21.0 31.3 12.0 23.0

European Union 13.2 17.6 12.6 19.5 10.0 17.0

Asia 51.8 29.9 56.8 42.0 66.0 48.0

Africa 1.7 0.8 6.0 2.9 8.0 5.0

Table 4. Direction of Indian spice exports (%)

Spice Competing countryBlack pepper

Cardamom (small)

Ginger

Turmeric

Clove

Nutmeg and MaceCassiaCinnamon

Indonesia, Brazil, Malaysia, Thailand, Sri Lanka, Vietnam,China (P.R), Madagascar, MexicoGuatemala, El Salvador, Indonesia, Malaysia, Papua NewGuinea, Sri LankaChina (P.R), Thailand, Japan, Bangladesh, South Korea,Malaysia, Fiji, Philippines, Jamaica, Nigeria, Sierra LeoneChina (P.R), Pakistan, Bangladesh, Thailand, Peru, Jamaica,SpainBrazil, Indonesia, Madagascar, Malaysia, Papua NewGuinea, Sri LankaGrenada, Guatemala, Mexico, Nicaragua, Sri LankaChina, Indonesia, Madagascar, Malaysia, Vietnam, SriLankaMadagascar, Papua New Guinea, Seychelles

Crop National Progressive Research AbroadFarmer station

Pepper 315 2000 2445 2925 (Malaysia)Cardamom 174 1625 450 250 (Guatemala)Ginger 3477 5500 8250 -Turmeric 3912 6200 10700 -Coriander 591 - 1900 515 (Morocco)Cumin 578 - 2000 -

Table 5. Potential for productivity increase at the national level(kg/ha)


high of 6850t worth Rs.720.5 croresin 2008-09. Major spice oils exportedare Pepper oil, nutmeg oil, mustardseed oil, clove oil, celery seed oil andginger oil and in case of oleoresins,paprika oleoresin followed by capsi-cum, pepper, garcinia and turmericoleoresins are exported. USA is themajor importer of spice extracts fol-lowed by Germany, UK, South Koreaand China. Mint products account for27% of the total spice export and it ismainly exported to USA, China,Singapore, Germany, Netherlandsand Japan.

Year/ Spices Black 1 Cardamom (s)2 Ginger3 Turmeric1

Spices Pepper

2006-07 3787812 82882 19423 391537 672478

2011-12 4268221 92658 36159 500558 776905

2016-17 4810895 103733 67535 640934 897816

2021-22 5416858 115362 126330 819999 1037830

2026-27 6103366 128570 236580 1051128 1200210

Table 6: Estimated production target for spices in India(Qty. = tons)

ImportsThe total import of spices in India

during 2008-09 is about 83545t val-ued at Rs.765.4 crores. The majorspices imported are pepper, poppyseeds, clove, cardamom, gingerfresh and cassia. Out of the total im-port of pepper (10750t) more than60% is light (immature) pepper foroleoresin industry extraction and re-export. Fresh ginger is importedmainly from Nepal (30%). Poppyseeds, cassia, clove and star aniseare also imported to meet the do-

Note: 1-With 80% import reduction; 2-With 0% import; 3-With 60% import reduction

Spices Cultivar/Hybrid

Black pepper Panniyur-I, Panniyur-2, Panniyur-3, Panniyur-4,Panniyur-5, Panniyur-6 & Panniyur-7, Sreekara,Subhakara

Panchami, Pournami, IISR-Thevam, IISR-Girimunda, IISR-Malabar Excel, IISR-Shakthi

Cardamom (small) Mudigere-I, Mudigere-2, PV-I, PV-2, ICRI-l,ICRI-2 & ICRI-3, ICRI-4, ICRI-5, ICRI-6,Avinash, Vijitha, Suvasini

Ginger Suprabha, Suruchi, Surabhi, Himagiri, Varada,Rejatha, Mahima

Turmeric CO-1, Krishna, Sugandham, BSR-I, Suvarna,Roma, Suroma, Rajendra Sonia, Ranga, Rasmi,Mega Turmeric, RCT- I, Sudarsana, Suguna,Prabha and Pratibha, Alleppey Supreme,Kedaram

Cinnamon Konkan Tej, YCD-1, PPI(C) -1, Sugandhini, IISR-Navashree, IISR- Nithyashree

Nutmeg Konkan Swad, IISR-Vishwashree

Fenugreek Co-I, Rajendra Kanti, Rmt-I, Lam Selection-I

Coriander GC- I, Co-I, Co-2, GC-2, Rajendra Swathi, RCr-4,Sadhana, Swathi, Co-3, CS-287, Sindhu, UD-24,DH

Cumin S-404, MC-43, GC-I, GC-2, GC-4, RZ-19

Fennel S-7-9, PF-35, Gujarat Fennel-1, Co-1

Table 7. Improved Cultivars/Hybrids available in Major Spices

mestic consumption.

Research and DevelopmentThe research on spices is being

carried out at IISR, Kozhikode whichalso houses the AICRP on Spices(AICRPS). The AICRPS has a networkof 35 centres spread across the coun-try for developing agro-climate spe-cific technologies. The research onseed spices is being carried out atNational Research Centre on Seedspices, Ajmer. The research has ledto the development of large numberof varieties and technologies.

Strategies for Development� Crop improvement and biotech-

nology� Better planting materials� Climate change on spices pro-

ductivity� Input use efficiency� Emphasis on organic farming� Pest and disease management� Processing and value addition� Quality-Clean Spices

Conclusion and future thrustThe major thrusts in researchprogrammes are oriented towardsthe following for increasing produc-tivity of spices.� Conservation of genetic re-

sources and bar-coding of geno-types

� Raising the productivity of spicesto the targeted levels

� Increasing quality planting ma-terial production, crop manage-ment and replanting and rejuve-nation of old gardens, GAP, INMand organic farming

� Increasing productivity of spices� Developing simple and cost ef-

fective tools and machines� Chemo profiling and identifica-

tion of new flavour compounds,bio active principles for patent-ing

� New market oriented technolo-gies for value addition, process-ing, product development

� Development of data bases, pre-diction models, production strat-egies and market intelligence

*Director, Indian Institute of SpicesResearch, Kozhikode 673012 (Calicut),

Kerala.


India, one of the greatestsuccess stories of GreenRevolution, is the second largestproducer of wheat in the world afterChina. Wheat is the second mostimportant crop after rice in India andoccupies approximately 27.7mha.The wheat production in India hastouched a new height of 80.56mt in2008-09 and the national wheatproduction accounts for

approximately 12% of global wheatproduction. On the other hand, Indiais also the second largest wheatconsumer after China. Thus, wheatand its various products play anincreasingly important role inmanaging India’s food security andIndia became the wheat surplusnation as against the wheatdeficient nation during 1960’s. Thetremendous progress in area,production and productivity of wheatto the tune of 2.9, 12.2 and 4.2times, respectively as compared to1950 has made India the memberof elite group of wheat exportingcountries.

Wheat Production ScenarioAbout 91.5% of the wheat

produced in six states viz., UttarPradesh, Punjab, Haryana, MadhyaPradesh, Rajasthan and Bihar. Onaverage basis of last five years,

(4.0 to 4.3 tons/ha)whereas thecontribution of other

states such as Uttar Pradesh andM a d h y aPradesh isdue tor e l a t i v e l ylarge area(approx. 50%of the totalarea) sown towheat. Thestates of loww h e a tproductivityhave shownan increasingtrend in grainyield per unitarea in recentpast but thes t a g n a t e dproductivitylevels inh i g h l y

productive states of Punjab andHaryana are posing a majorconcern for future productiontargets.

Wheat Scenario in IndiaDr SS Singh1 and Dr SK Singh2

Production statistics of wheat in IndiaCrop year Area Production Yield

(mha) (mton) (t/ha)

1950-51 9.75 6.46 0.66

1960-61 12.93 11.00 0.85

1970-71 18.24 23.83 1.31

1980-81 22.28 36.31 1.63

1990-91 24.17 55.14 2.28

2000-01 25.73 69.68 2.71

2007-08 27.70 78.56 2.80Source: Agricultural Statistics at a Glance, 2008

Statewise production statistics of wheat*State Area Production Productivity

(m ha) (mt) (t/ha)

UP 9.13 24.25 2.7

MP 3.80 6.28 1.7

Punjab 3.44 14.67 4.3

Haryana 2.30 9.13 4.0

Bihar 2.07 3.72 1.8

Rajasthan 2.07 5.74 2.8

Gujarat 0.66 1.66 2.5

Maharashtra 0.78 1.03 1.3

West Bengal 0.41 0.89 2.2

Uttranchal 0.40 0.74 1.9

HP 0.36 0.60 1.7

Karnataka 0.25 0.17 0.7

All India 26.20 69.73 2.7

*Average of last 5 years

Dr SS Singh

Uttar Pradesh with 24.25mtcontinues to be the highestproducer of wheat followed byPunjab (14.67 mt) and Haryana(9.13 mt). The contribution fromHaryana and Punjab is mainlyattributed to their high productivity


Available irrigation for wheatcrop

Nearly, 89% of the wheat areain the country is irrigated and mostof it lies in north India. Wheatcultivation in top three wheat-producing states is supported bymore than 95% area under irrigation.Rajasthan (99%) and Bihar (90%)also have most of the wheat areaunder irrigation. The central,peninsular and hilly areas ofnorthern and southern regions growmostly rainfed wheat whosesuccess largely depends onresidual moisture build up frommonsoon, limited availability ofwater for irrigation and casual winterrains. Gujarat (87.5%), MadhyaPradesh (78.3%), Maharashtra(66.5%) and Karnataka (51.5%)has comperatively lower coverageof area under irrigation and rest ofthe area depends on rains thatexplains the cause of lowproductivity and scope forimprovement through infrastructuredevelopment.

Wheat Procurement and TradeTotal procurement of wheat in

India increased from 12.7-20.6mtduring the period from 1998-99 to2001-2002. The contribution ofPunjab and Haryana was more than80%. However, the procurementwas reduced from 2002-03 andreached to the level of 9.2mt during2006-07 due to decrease inproduction. MSP per quintal ofgrains increased from Rs.550 toRs.750 per quintal during thisperiod. Increase in MSP for wheatduring 2007-08 to Rs. 1000 andthen to Rs. 1080 during 2008-09has resulted in quantum jump in theprocurement of wheat to the tuneof 22.2mt during 2008-09. Exportof wheat, which was nominal during1998-99 rised to 4.09mt in 2003-2004 but after that there has beenno progress in export of wheatgrains and negative trend in theexport of wheat was shown thatreduced to negligible quantity ofonly 230t during 2007-08. However,keeping in view of a sort of drought

situation during the existing Kharifseason, Govt. of India has putrestrictions on export of wheat andnon-basmati rice. On the otherhand, India has imported 6.1mtwheat in 2006-07 and 1.8mt during2007-08. This import is mainlyattributed to the lowest buffer stockof 5.4mt in 2007 and slightly higherstock of 7.71mt in 2008. However,the buffer stock of wheat which is33mt in 2009 is recorded to be thehighest ever since 1991.

Advances in Technologicaldevelopement

Varieties releasedThe Indian wheat improvement

programme has significantlycontributed to the release of 357wheat varieties through CentralVariety Release Committee (226)or State Variety ReleaseCommittee (131) for different agroclimatic zones along with relevantproduction technology sinceinception of the All IndiaCoordinated Wheat and BarleyImprovement Programme in 1965.This included 302 bread wheat, 47durum, 05 dicoccum and 03 triticalevarieites. Some varieites releasedin recent past have contributedsignificantly to enhanced wheatproduction and among them, PBW343 (NWPZ/NEPZ-7.0 m ha), HUW234 (NEPZ- 3 m ha), Lok 1(CZ- 2.0m ha) and HD 2189 (PZ-0.5 m ha)

are notable. Besides this, morethan 110 wheat genetic stocks havebeen registered with NBPGR, NewDelhi for various biotic and abioticstress tolerance as well as yieldand quality components for theirfurther utilization in wheatimprovement programmes.

Resource ConservationTechnologies

The zero tillage technology forseeding wheat without any fieldpreparation has several advantagesover conventional tillage. Besidessaving energy, it reduces the costof cultivation, advances the time ofwheat sowing by 4-5 days, requiresless water for the first irrigation andresults in less infestation ofPhalaris minor. Recent estimatessuggest that around 2.0 millionhectares area is under no-till/ zerotill /reduced till which has potentialupto 10m ha.

The Furrow Irrigated RaisedBed-planting System (FIRBS) ispromising resource conservationtillage technology that saves about25% seed and fertiliser alongwithreduced water usage by 25-40%.Rotary tillage technology is anotheroption that gives highestproductivity with the least specificenergy requirement. The energysaving is more than 80% comparedto conventional seeding of wheat asobserved in farmers fields. To avoidthe residue burning, a new machine


“Rotary Disc Drill” has beendeveloped at the Directorate withan active participation of the Rice-Wheat Consortium for Indo-Gangetic plains, which is capableof seeding under loose residueconditions.

Crop DiversificationDiversification of wheat based

cropping system especially rice-wheat system by introducing shortduration legume crops for grains orgreen manuring helps in restoringsoil health by enhancing the organicmatter content and improving thesoil physico-chemical properties.Among various diversified croppingsequences, rice-vegetable peas-wheat rotation gave the highest netreturn per unit area and it appearsto be the best option formaximisation of net returns andsustainability of the rice-wheatsystem.

Plant Protection TechnologiesIndian wheat production has

been free from disease epidemicsduring the last three decadesmainly because of systematicdeployment of rust resistance genein HYVs. The survey andsurveillance of rust virulence andidentification of resistance donorsagainst important diseases andpests were very crucial activities inthis direction. Pest risk analysishas been carried out for Karnal buntto safeguard the national export

potential and Integrated PestManagement (IPM) modules havebeen developed and validated forcost effective and eco-friendlycontrol of pest and diseases ofwheat. Efficient protectiontechnologies have also beendeveloped to control aphids andtermites.

Challenges ahead� Stagnating yield potential� Unavailability of quality seeds

and low seed replacement� Global climate change� Sustainability of Rice-Wheat

System� Reduced Total Factor

Productivity and imbalanceduse of fertilisers

� Limited irrigation availability� Restrictions to germplasm

exchange in new IPR regime� Yield gaps at farm level

Future Strategies forenhanced production

Breaking yield barriers throughgenetic enhancement

Genetic diversity will continueto be the key factor and newapproaches needs to be adoptedto enhance yield potential of wheatgenotypes. In this regard, the futurestrategy will be aimed to introgressdesirable genes complexes fromunexploited germplasm and wildprogenitors for creating newvariability.

Exploitation of Hybrid Vigour inWheat

Now the emphasis is on thecytoplasmic genetic male sterilitysystem that needs a good malesterility system, fertility restorationsystem and the correctcombination of the genotypes forhigher heterosis. The efforts are inprogress to understand the floralbiology for enhanced outcrossing,identification of heterotic pools anddiversification of male sterility andfertility restoration system that willbe helpful in future strategies forhybrid development.

Molecular approach forprecision breeding

Molecular mapping of genes,Doubled haploid system,understanding structural andfunctional genomics of wheat, thetransformation approach etc canhelp in improving the wheatbreeding programme.

Tailoring wheat genotypes incropping system perspective

New resource conservationtechnologies have been developedfor high output from wheat cultivationin a profitable and sustainablemanner. This needs to beaccomplished with specificgenotypes for cultivation underdifferent RCTs.

Improved varieties for abioticstresses

Breeding for heat tolerance isone of the major issues underprevailing stress environments.The salinity and alkalinity conditionis another threat that severelyaffects productivity of wheat.Genotypes tolerant to waterlogginghave been identified which needsto be incorporated in high yieldingbackground.

Disease resistance breedingThe new threats of stripe rust

race 78S84 and stem rust raceUg99 are becoming more dangerousfor higher productivity. Although theresistant sources have been


identified in internationalcollaboration, the need is to develophigh yielding varieites withresistance to these races. Leafblight and flag smut, Karnal buntare other diseases of impotancethat needs to be taken care of forwheat production and the exports.

Conservation AgricultureConservation agriculture will

help to retain the residue on thesurface of the soil which will act asbiological tillage, conserve the soilmoisture, release nutrients to theplant as and when required, reducesoil erosion, keep a check on weedsand provide enabling environmentthat will ultimately help insustenance of soil and cropproductivity.

Integrated Water, Nutrient &Weed Management

Issues like water conservation,watershed management, sprinklerand drip irrigation and FIRB (FurrowIrrigated Ridge-till and Bed-planting)system of wheat cultivation needsto be addressed with respect toincreased nutrients and moistureuse efficiency. Attention is alsoneeded for balanced use ofchemical fertilizers, use ofbiofertilizers and other sources forimproving soil structure and texture.As most of the area follows thewheat based cropping system,there is a need to focus onintegrated weed management andsuccession of weeds in a croppingsequence.

Diversification / Intercropping/Companion Cropping

Since area under wheat is notgoing to expand further, there is aneed to evolve suitable genotypesand production technologies forvarious synergistic and parallelintercropping/ companion-croppingsystems. The present efforts todiversify the rice-wheat systemneed to be enhanced throughsupport from policy makers andextension workers.

Quality Improvement in Wheat

With tremendous humanresource and emerging foodprocessing technologies, India hasa large scope to develop instantfood industries, thus, the Indianwheat programme has tostrengthen to meet the qualityrequirement of domestic andinternational market.

Post harvest technologyFood processing industries can

take maximum benefit fromsuperior varieties of wheat ifprocurement and processing ofgrains at market level is attendedwith special care.

Access to quality seeds of wheatFor quicker replacement of old,

susceptible and otherwiseuneconomical varieties, theresearch institutes of the ICAR,SAUs and State Departments ofAgriculture should develop astrategy to distribute andpopularize newly released cultivars.

Strengthening linkage betweenresearch and extension

Transfer of technology throughfrontline demonstrations will be themajor focus to bridge yield gapbetween experimental field andfarmer’s field. If the production gapsare bridged, an additionalproduction of 29.4mt wheat underirrigated conditions is possiblethrough existing technologies.

Cooperation from state agriculturalextension units and AgriculturalUniversities would be a key factorin this process.

Developmental and policyIssues

Policy support is needed topopularise and spread ecofriendlyproduction technologies such asZero tillage and crop diversification,production and marketing of highquality product specific wheat,installation of modern silos toprevent post-harvest loss of qualityand quantity of grains anddevelopment of wheat based ruralindustries and cooperatives forproducing and marketing valueaided products.

ConclusionThe present yield plateau is the

major concern for achieving thetargeted wheat production of 109mtby 2020. However, bridging the yieldgap between experimental andfarmers’ fields can solve theproblem to a considerable extent.With the existing technologies,about 29.4mt wheat can be addedto the national basket. For futureneeds, the genetic enhancementsof yield potential through integrationof conventional and molecularapproaches with special referenceto the changing climatic conditions,integrated management ofresources and incorporation ofresistance genes to various bioticand abiotic stresses are verysignificant factors. Quality of wheatwill continue to be one of the majorfoci of research. With support fromfarmers, policy makers andextension units, it is expected thatpresent technologies can be furtherrefined and popularized so thatwheat production can be enhancedto meet our future demand for thefood and nutritional security.

1Project Director;

2Senior Scientist,

Directorate of Wheat Research, Karnal-132001


Technology intervention in vegetable

crops for enhanced production and exportDr Mathura Rai, Dr AK Pandey and Dr AB Rai

Presently, India occupies 7.8mha with an annual production of125.89mt in vegetables. Potatoranks first (26.7%) in totalproduction of vegetables followed byother important solanaceousvegetables like brinjal (8.4%) andtomato (8.6%). Onion is one of themost important vegetables,occupying a significant share(8.5%) in vegetable production.Cauliflower and cabbage are themost preferred winter vegetablesand their total share in the country’svegetable production is 4.8% and5.4%, respectively. Other importantvegetables, which are primarilygrown in the country, are okra,vegetable peas and a good rangeof cucurbits.

West Bengal ranks first in thetotal production of vegetablescontributing to more than one-fifthof the entire country’s vegetableproduction. Uttar Pradesh, Bihar,Orissa, Tamil Nadu, Gujarat andKarnataka are the other leadingvegetable producing states in thecountry. In last one decade, therehas been considerable progress inenhancing the productivity ofvegetables which is presently 16.1t/ha. To ensure the nutrition securityof the burgeoning population of thecountry, it is estimated that by2020, the country’s vegetabledemand would be around 135mt.To achieve this target, it is sine quanon to integrate the varioustechnologies right from productionto post-harvest.

Vegetable hybrid: a noveloption for the future

In recent past, much emphasishas been given to exploit heterosisin several economically importantvegetable crops like tomato, brinjal,pepper, cabbage, cauliflower, othercole crops, radish, carrot,cucurbits, etc. Vegetable breeders

prefer to select hybrid breedingbecause it is comparatively easyto incorporate the resistant genesfor biotic and abiotic stresses in F1

hybrid. Moreover, under optimumcrop production and protectionmanagement, crops raised fromseeds of F1 hybrids have severaldistinct advantages including better

yield, adaptability under adverseconditions and ability to resist

STATE/UTS Area Production Productivity(000ha) (000MT) (T/ha)

Andaman & Nicobar 4.3 32.6 7.58Andhra Pradesh 264.9 4355.9 16.44Arunachal Pradesh 23.7 110.0 4.64Assam 328.9 4474.2 13.6Bihar 823.7 14067.7 17.1Chandigarh 0.1 1.7 17.00Chhattisgarh 292.6 2934.3 10.00D & N Haveli 1.5 13.5 9.00Daman & Diu 0.2 0.2 1.00Delhi 42.7 595.6 13.9Goa 8.5 85.0 10.00Gujarat 411.7 7402.9 18.00Haryana 274.6 3277.1 11.90Himachal Pradesh 63.7 1150.7 18.01Jammu & Kashmir 58.6 1238.1 21.01Jharkhand 238.8 3639.7 15.02Karnataka 406.0 5030.9 12.04Kerala 166.9 3479.1 20.08Lakshadweep 0.4 14.0 35.00Madhya Pradesh 209.3 2919.7 13.90Maharashtra 455.3 6454.8 14.2Manipur 12.1 113.7 9.4Meghalaya 42.5 352.5 8.3Mizoram 1.3 37.9 30.9Nagaland 10.38 63.5 6.1Orissa 660.8 8214.6 12.40Pondicherry 2.7 54.7 20.6Punjab 171.7 2772.1 16.1Rajasthan 135.7 819.9 6.00Sikkim 20.1 95.9 4.8Tamil Nadu 262.7 7957.7 30.4Tripura 33.5 423.5 12.6Uttar Pradesh 960.9 19790.3 20.6Uttrakhand 80.6 1036.2 12.9West Bengal 1313.2 22456.8 17.1TOTAL 7803.00 125887.00 16.1

Table 1. State wise area, production and productivity of vegetablesin the country

Source: NHB Data Book, 2007-08

Dr Mathura Rai


several biotic and abiotic stressesalong with consumers’ preferredquality traits.

Development of hybrids throughAICRP

ICAR had initiated a networkproject entitled, “Promotion ofHybrid Research in VegetableCrops” during 1995-96. This projectwas initiated in nine vegetables, viz.,tomato, brinjal, chilli, capsicum,okra, onion, cabbage, cucumberand bitter gourd with the objectives(i) to promote hybrid research (ii)to incorporate biotic stressresistance in the hybrids, (iii) tostrengthen hybrid seed researchand hybrid seed productiontechnology (iv) to test the provenhybrids for their potentiality and (v)to establish their productiontechnology. Based on critical reviewof the achievements of this project,a mission mode project is underoperation with financial supportfrom National AgriculturalTechnology Project (NATP). Thisproject was aimed at hybridresearch especially on thedevelopment of specific qualityhybrids of tomato, brinjal, chilli andonion at twelve centres. Severalpromising hybrids have beendeveloped through the project,which are currently being tested inmulti locations.

Tapping the export potential ofexotic vegetables

Recently few exotic vegetablesincluding broccoli, red cabbage,Savoy cabbage, Chinese cabbage,celery, leek, parsley have beenintroduced and their adaptability

studies have been undertaken indifferent parts of the country. Theagro climatic conditions prevailingin several parts of north-westernHimalayas of J&K, HimachalPradesh and Kaman and Narwhaldivision of Uttaranchal are veryfavourable for growing these exoticvegetables. Besides, they may alsobe grown during winter season inplains of north India includingPunjab, U.P. and Haryana.

Crop Name of identified hybrids

Tomato ARTH-4, MTH-6, ARTH-3, Pusa Hybrid-2, FMH-2 (A.Vardhan), NA-501, DTH-4, KT-4, NA-601, FMH-2, BSS-20,Avinash-2, HOE-303, Sun-496, BSS-20, DTH-8, SwarnBaibhav (CHTH-1), ARTH-128, KTH-2

Brinjal Arka Navneet, Kat-4, Pusa Hybrid-6, Pusa Hybrid-5, ARBH-201, NDBH-1, ABH-1, MHB-10, MHB-39, NDBH-6, ABH-2,ABH-2 , Phule Hybrid-2, Pusa Hybrid-9, ARBH-541, PBH-6, JBH-1, BH-1, BH-2, Kashi Sandesh

Chilli HOE-888, ARCH-236, Sungro-86-235, ARCH-228, CCH-2,CCH-3

Capsicum KT-1, SEL-II , Lario, DARL-202

Okra DVR-1, DVR-2, DVR-3, DVR-4

Cauliflower Pusa Hybrid-1, DCH-541; Synthetic variety: Synthetic-1,Early Synthetic

Cabbage Shri Ganesh Gol, Nath-401, BSS-32, Nath-501, Quisto;Synthetics: Pusa Synthetic

Carrot Hybrid-1

Muskmelon Hybrid M-3, MHY-5

Watermelon Arka Jyoti

Bitter gourd Pusa Hybrid-2

Cucumber PCUCH-1

Bottle gourd PBOG-2, PBOG-1, NDBH-4

Table 2. Hybrids of vegetables recommended for release andcultivation through AICRP


Cultivation of celery and parsleywere started during 1990s undercontrolled conditions at very smallextent in Chatarpur near Mahrauliin Delhi and Kairana inMuzaffarnagar by rich farmers tocater to Delhi, Mumbai and Kolkatamarkets. Few multinationalcompanies have also startedprocessing a few exotic vegetables.As the demand of exotic vegetableare increasing owing to theawareness and living standard,cultivation of these vegetables willprovide employment, boost theincome of growers apart from thediversity in food basket andnutritional security.

Vegetable seed production-ahighly profitable laced venture

The hybrid vegetable seedindustry in India is estimated atRs.180 crore. India is the secondlargest user of hybrid tomato seedsafter USA. Cabbage and tomatohave the largest area under hybrids40% and 35% of their total area,respectively. Hybrid seedproduction technology can be takenas a very remunerative venture bysmall and marginal farmers.Approximately 40 farmers in Punjabare producing hybrid seeds of chilli,CH 1 and CH 3 using a male sterilegene (ms-10) introduced fromFrance. Similarly, seeds of Punjabhybrid muskmelon are also beingproduced by the farmers using malesterile line (ms-1).

Contract farming of vegetablesWith the emergence of the freemarket economy in the wake of

Crop States / Organizations

Beans Andhra Pradesh, Karnataka, Tamil Nadu

Bhindi Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka,Maharashtra, Orissa, Punjab, Tamil Nadu, Uttar Pradesh

Bitter gourd Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh,West Bengal

Bottle gourd Andhra Pradesh, Karnataka, Maharashtra, Uttar Pradesh

Brinjal Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, UttarPradesh

Cabbage Assam, Himachal Pradesh, Jammu & Kashmir

Capsicum Himachal Pradesh, Karnataka, Maharashtra, Sikkim, UttarPradesh

Carrot Haryana, Jammu & Kashmir, Madhya Pradesh, Maharashtra,Punjab, Rajasthan, Uttar Pradesh

Cauliflower Bihar, Himachal Pradesh, Jammu & Kashmir, MadhyaPradesh, Rajasthan, Uttar Pradesh

Chillies Andhra Pradesh, Karnataka, Madhya Pradesh,Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh

Cucumber Andhra Pradesh, Uttar Pradesh

Luffa Andhra Pradesh, Maharashtra, Uttar Pradesh

Methi Haryana, Madhya Pradesh, Maharashtra, Punjab, Rajasthan,Uttar Pradesh

Onion Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, UttarPradesh

Palak Bihar, Haryana, Madhya Pradesh, Punjab, Rajasthan, UttarPradesh

Peas Haryana, Himachal Pradesh, Madhya Pradesh, Rajasthan,Uttar Pradesh

Pumpkin Andhra Pradesh, Karnataka, Maharashtra

Radish Bihar, Haryana, Himachal Pradesh, Jammu & Kashmir,Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh

Tomato Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh,Maharashtra, Orissa, Punjab, Rajasthan, Uttar Pradesh

Turnip Himachal Pradesh, Jammu & Kashmir, Uttar Pradesh

Table 3. Crop-wise states identified for certified foundation/certi-fied seed production


liberalization, globalization,privatization and the fast expansionof agri-business, small farmers mayfind difficult to cope with thevolatility in the economy. They tendto be marginalized and migrationfrom rural to urban areas isincreasing alarmingly all over thecountry. As a result, consolidationof holdings is increasinglybecoming the need of the day.Therefore, the need of the hour isto mitigate the difficulties in thecontract farming system, whichwould hopefully popularize it furtheramong small farmers

The success story of Pepsi Foodsltd.Launching its agro-business in Indiawith special focus on exports ofvalue-added processed foods,Pepsi Foods Ltd. (‘PepsiCo’hereafter) entered India in 1989 byinstalling Rs.22 crore state-of-the-art tomato processing plant atZahura in Hoshiarpur district ofPunjab. The company intended toproduce aseptically packed pastesand purees for the internationalmarket. However, before long, thecompany recognized thatinvestment in agro-processingplants would not be viable unlessthe yields and quality of agricultural

produce to be processedwere up to internationalstandards. At that point oftime, tomato had neverbeen cultivated in Punjabfor its solid content, witha focus on high yields andother desirable processingcharacteristics such ascolour, viscosity andwater binding properties.This led to the birth ofPepsiCo’s backwardlinkage with farmers ofPunjab in form of contractfarming.

Exports is drivingorganic foodproduction in IndiaThe increasing demand fororganic food products inthe developed countries

and the extensive support by theIndian government coupled with its

Table 4. Export of vegetables (QTY in MT value in Lakh)

2006-2007 2007-2008Qty Value Qty Value

Floriculture & seeds

Floriculture 42545.28 65269.73 36240.71 34014.42

Fruit and vegetable seeds 8104.09 12158.95 10157.13 14212.29

Total for Floriculture & seeds 50649.37 77428.68 46397.84 48226.71Fruits & vegetables

Fresh onions 1378373.17 116330.57 1008606.48 103577.89

Other fresh vegetables 276824.6 43314.38 350235.47 48949.01

Dried nuts (walnuts) 5062.86 11803.79 6716.48 16207.8

Fresh mangoes 79060.88 14193.95 54350.8 12741.76

Fresh grapes 85897.79 30192.45 96963.57 31782.51

Other fresh fruits 177638.02 30997.3 207700.78 30452.6

Total for Fruits & Veg. 2002857.32 246832.44 1724573.58 243711.57Processed fruits & vegetables

Dried and preserved vegetables 119270.43 42754.17 125726.28 42993.81

Mango pulp 156835.51 50582.79 166752.17 50968.51

Pickle and chutney 145216 29359.48 127558.47 25061.71

Other processed fruits 172851.58 66191.34 184197.82 71219.94

and vegetables

Pulses 255084.47 78999.4 170614.39 54900.85

Total for Processed 849257.99 267887.18 774849.13 245144.82Fruits & Veg

focus on agri-exports are the driversfor the Indian organic food industry.APEDA (Agricultural andProcessed Food ExportDevelopment Authority) coordinatesthe export of organic food (and otherfood products) in India. The NationalProgramme for Organic Productionin India was initiated by the Ministryof Commerce. The programmeprovides standards for the organicfood industry in the country. Sincethese standards have beendeveloped taking into considerationinternational organic productionstandards such as CODEX andIFOAM, Indian organic foodproducts are being accepted in theUS and European markets.

Organic food products exportedfrom India include the following:� Organic Cereals: Wheat,

rice, maize� Organic Pulses: Red gram,


black gram� Organic Fruits: Banana,

mango, orange, pineapple,passion fruit, cashew nut,walnut

� Organic Oil Seeds and Oils:Soybean, sunflower, mustard,cotton seed, groundnut, castor

� Organic Vegetables: Brinjal,garlic, potato, tomato, onion

� Organic Herbs and Spices:Chilli, peppermint, cardamom,turmeric, black pepper, whitepepper, aonla, tamarind,ginger, vanilla, clove, cinnamon,nutmeg, mace,

� Others: Jaggery, sugar, tea,coffee, cotton, textiles

Under the “National Project onOrganic Farming” for production,promotion and market developmentof organic farming in the country,financial assistance is provided forcapacity building through serviceproviders, setting up of organic inputproduction units, promotion oforganic farming through trainingprogrammes, field demonstrations,setting up model organic farms andmarket development. Under the“National Horticulture Mission”(NHM) and “Technology Mission forIntegrated Development ofHorticulture in North EasternStates, J&K, Himachal Pradeshand Uttarakhand” promotion oforganic farming has been includedas a component and financialassistance is provided for organiccultivation of horticultural crops,setting up of vermi-compost unitsand organic farming certification.

GAP for organic farming of

vegetablesGAP (Good

A g r i c u l t u r a lPractices) can notonly minimize theexpenditure onescalating cost ofproduction but mayprove boon for organicfarming also.Common agronomicpractices should besuitably modified tomake uncongenial condition forpests and to enhance the activityof natural enemies. Keeping inmind the diversity and intensity ofpests in particular place, selectionof resistant / less susceptiblevarieties, holds good in pestmanagement. Plant resistanceprovides a built in ability to allowless pest and cut off the extra loadof insecticides in the crop. Beingcompletely safe, host plantresistance fits well with all othercomponents.

Vegetable export- presentstatus

India’s export of fresh vegetableduring 2007-08 was around484.49crore rupees. during 2007-08, substantial progress has beenmade in export of dried andpreserved vegetables which was tothe tune of Rs.429.93crore. Detailsof export of various commoditiesrelated to vegetables and theirprocessed products are givenbelow.

Minimal processing ofvegetables

Minimal processing is anemerging technological conceptwhich had gained muchpopularity in the recent past.Technology enables globalmarketing of pre cut vegetablesand fruits in pre packaged formand the products are meant forspecific end use viz., curries,salad, pies, stuffing, topping andgarnishing. A part from offeringfresh/fresh like vegetableproducts, minimal processingalso results in elimination ofkitchen drudgery with significant

convenience and restriction inpackaging and transport costs. Theminimal process involves sanitationwash, physio-chemical conditioningof the tissue followed byprepackaging in flexible pouches.The technology is less capitalintensive with low energyconsumption and requirements oftechnical manpower making itsuitable for rural based industries.

Recent export promotionmeasures

Some of the major ones are (i)New Foreign Trade Policy (FTP).Under the new FTP (2004-09)announced by the Ministry ofCommerce & Industry, Governmentof India, a host of incentives havebeen given to boost agri-exports.These inter alia include (a) duty-freeimport of capital goods under theExport Promotion Capital Goods(EPCG) scheme, (b) Duty creditscrip equivalent to 5% of the f.o.b.value of exports, and the (c)Launching of Vishesh Krishi UpajYojana which is aimed at promotingagri-exports, viz. vegetables, fruits,flowers, minor forest produce, etc.(ii) Setting Up of JV. The world tradeorganization (WTO) and GeneralAgreement on Tariffs and Trade(GATT) has opened the newopportunities for the country tocompete at the global level forexporting fresh and processedvegetables. Accordingly, India isemerging as one of the majorexporting countries for a number ofvegetable crops.

Director, Indian Institute ofVegetable Research, Varanasi


IndustryIndustryIndustryIndustryIndustry


FertilizersPast, Present and Future

It was a great Indian dream inthe 50’s to attain self sufficiency infood production which appeared tobe a mirage considering the pre-vailing food production at that pointof time. The story of PL 480 fundsand the whiplash India faced whenit tried expressing itself againstUSA in the UN, is well remembered.Infact it took the earnest wish of LbJohnsons’ daughter, to restart sup-plies of wheat to the starving India.It took the pioneering efforts of DrM S Swaminathan, Sri CSubramanian, Dr Norman Borlaugto introduce short duration Mexicanvarieties of wheat to usher in whatis today popularly called “GREENREVOLUTION”. Production, breed-ing of hybrid varieties soon becamean infectious passion amongst In-dian scientists and break throughswere emerging in many areas likeproduction of milk, oil, fish etc andnew revolutions like white, yellow,blue revolutions came to stay.

India was adding every year oneAustralia, thereby putting pressureinnocuously on the Indian soil.Since high yielding seed varietieswere more hungry for nutrition, de-mand for nutrition increased. Thisdemand was growing at a creepingrate of 4 to 5 % per annum and wasbeing silently but effectively fuelledby the artificially controlled pricing,Indian farmers were enjoying. With-out a doubt, India was getting intoa trap from which it would find itdifficult to extricate.

The demand for nutrients in theform of Urea, DAP, NPKs, MOPstarted going up, from 55,000 MTin 1950 to 25.3 million MT in 2009.The Indian fertilizer industry had ar-rived on the international scene,supported substantially through theretention pricing system and thepartial decontrolled ad hoc subsidyroute.

India became the world’s sec-

ond largest consumer of fertilizers,but in the same way it also startedconsuming subsidy amountingbetween Rs.50,000 to Rs.117000crore, per annum which has be-come a burden beyond bearing.

India produces 20 million MT ofurea largely using indigenous natu-ral gas, and simultaneously imports6 to 7 million MT, to meet the de-mand, wherein the price of urea thatfarmers pay is cheaper than theprice of common salt. Possibly this

has addicted the farmer to injudi-ciously, broadcasting urea, result-ing in poor productivity of almostall crops grown in India.

Reluctance on the part of thepolitical system ensured continua-tion of the suppressed prices tofarmers which also assured inter-national suppliers that India will buy,whatever the price is quoted asthere is no viable alternative. Thesituation has become grave as foodproduction can drop substantially,if fertilizer consumption is restricted,and when India, initiates efforts toimport food grains, it becomes asuppliers paradise, with prices ofwheat, pulses and oilseeds sky-rocketing.

Rationalizing the subsidythrough the nutrient based policyhas been given a thought, while si-multaneously looking at methodsof direct disbursal of a subsidyamount of nearly Rs. 50000 cr to12 crore farmer households.

Many variants have assumedserious proportions and they areincreasing subsidy, stagnated foodproduction, new methods of sub-sidy disbursal, which will have an

The story of PL 480 funds and the whiplash India faced whenit tried expressing itself against USA in the UN , is wellremembered. Infact it took the earnest wish of Lb johnsonsdaughter , to restart supplies of wheat to starving india.

India produces 20 millionton of urea using indig-enous natural gas , and

simultaneously imports 6 to7 million ton , to meet thedemand, wherein the price

of urea to farmers is cheaperthan the price of common

salt. Possibly this hasaddicted the farmer to

injudiciously, broadcasturea, resulting in poor

productivity of almost allcrops grown in India.

Dr G Raviprasad


impact on food availability and fis-cal deficit. We do not have a tabletto get rid of all these head aches ata time, but certainly have a routeplan to mitigate the pain.

Firstly excessive use of ureahas to be curbed by increasing theprices, so that injudicious use isrestricted. The same price in-crease, though moderate should beapplied for other fertilisers immedi-ately.

The fertilizer control order shouldaccommodate more grades or vari-eties of fertilizers, so that the In-dian farmer has a choice, to uselow, medium and high grades ap-propriately.

Thirdly, fortification with micro-nutrients as well as using largequantities of good quality micronu-trients, water soluble fertilizers,should be encouraged. Introductionof modern high yielding varieties/hybrids of rice, wheat, maize, sor-ghum and pearl millet coupled withapplication of high doses of NPKfertilizers resulted in increased pro-duction which in turn is triggeringremoval of micronutrients from thesoil. Profuse and increased use ofhigh analysis Di-Ammonium phos-phate (DAP) over single superphos-

phate (SSP) and almost nil appli-cation of farmyard/organic manureshas resulted in the wide spreaddeficiencies of soil micronutrientsin India.

Proper methods of applicationi.e., Band Placement, Fertigationand Foliar application of fertilizersare more efficient methods of ap-plication compared to broadcasting.The recovery of nutrients in fertiliz-ers is usually increased when thematerial is placed near the seed,e.g. by band placement. WaterSoluble fertilizers for applicationthrough foliar or drip irrigation needsto be promoted intensively.

Soil Organic carbon(SOC) con-

tent levels of Indian soils are to beexpressly augmented by encour-aging use of compost, which issubsidized appropriately.

Alternate sources of plant nutri-tion need to be explored and ex-ploited to strengthen our positionin global markets. Options likeMSW composting require in-creased impetus from GOI andfavourable policies need to be de-signed to encourage wastecomposting initiatives in India.

Mumbai alone generates 7,000tonnes of garbage a day, whichcould fill a one square kilometer(100 Ha) pit up to 20 feet deep ev-ery year. Same 100 hectares of landotherwise could have been usedsufficiently to build 1 Lac housesgiving shelter to nearly 4 Lakhpeople. Same garbage could besuccessfully composted to en-hance productivity of 10 Lakh acresof adjoining hinterland.

The entire country should under-take soil analysis and mapping,through digital process for macroand micronutrients. Most efficientway of supplying nutrients is tosupply only as much nutrient asrequired by the plant at its growthstage. Thus SOIL TESTING be-comes the first step to know therequirements of additional fertilizerapplication. Although in India, num-ber of soil sample being tested isincreasing every year, but biggestconcern is the time lag betweendate of sampling and date of receiptof report which in most of the casesis so long that it misses the mark.Lot of work still needs to be doneon prompt diagnosis techniqueslike Soil Chromatotogram and otherrapid reporting technologies to re-alize the potential of soil testingtool.

State and university recommen-dations for integrated nutrient man-agement should consider new prod-ucts as well as measures to en-hance use efficiency of existing fer-tilizers. The efficient use of fertiliz-ers is important for three main rea-sons. First, raw materials reserveslike phosphate rock, from whichfertilizers are manufactured, are fi-


nite, nonrenewable resource, andmust be used efficiently in order tomaximize their life span. Second,there is a need to maintain andimprove the nutrient status of manysoils for the growth of crops for food,fiber and bio-energy. This is par-ticularly important in least-devel-oped countries (LDCs) like Indiathat need to increase food produc-tion and improve rural livelihoods.Third, the transfer of soil nutrients(derived from fertilizers and organicmanures) is a major cause of envi-ronment deteriorations like P-in-duced eutrophication in surfacewaters and nitrate pollution whichis 200 times more harmful than CO2

emissions.Use of information technology for

crop diagnostics, symptom analy-sis, and transfer of informationshould also be given emphasis.

Indian agriculture is at crossroads and can be corrected, gradu-ally if the intent and resolve is ex-hibited. With current levels of con-sumption of 25 million MT of chemi-

cal fertilizers, Indiashould be producingat least 300 millionMT of food grains,which is a modestestimate of produc-tivity and can ex-ceed 330million MTif productivity isgood and can cross350 million MT if In-dian agriculture pro-

ductivity is very good, reaching 375million MT at excellent levels of pro-ductivity,

The objective of the Indian fertil-izer industry is to increase foodgrain production and improve theproductivity levels. Subsidy is aninstrument to aid in maximizing pro-duction. The Indian fertilizer indus-try must aim through multi prongedstrategies as listed below to im-prove production and productivity.

First and foremost, the industrywith support from the Govt of India,must seriously secure the raw ma-terials for consistent production ofphosphatics as well as nitrogenousfertilizers. New areas of rock phos-phate mining, potash mining mustbe secured on similar lines, as isbeing done by the oil industry, bycompetitive bidding of blocks. Newrock phosphate producing coun-tries like Tunisia, Australia,Polynesian islands, Uganda etc.,must be scouted and long termcontracts signed as a first step intobackward integration.

Potash mines in former Soviet

Union, Thailand, Jordan must beexplored and mining rights secured.In fact, China has been a pioneerin this area and India must emu-late this option. Natural gas whichis now being made available byReliance Industries should be ex-ploited fully and India’s Urea/Am-monia production should increasesubstantially. India now must lookat beneficiation of low grade rockphosphate available in Rajasthanand Madhya Pradesh and improvethe concentration of low grade rock,so that it is available for manufac-ture of Phosphoric Acid. Sick fer-tilizer plants in India, pending re-vival or disinvestment, must behanded over to good fertilizer unitson tolling basis and thereby kickstart production and employment.

Usage of micronutrients and or-ganic compost as explained ear-lier will reduce the consumption ofchemical fertilizers, while simulta-neously saving subsidy and in-creasing food yield.

Through the process of judi-cious usage of fertilizers, if 20 lakhMTs of fertilizers, consumption issaved, it will amount to a saving ofRS. ten thousand crore.

This amount of Rs.10,000 crorecan be set aside for improvedmechanization of agriculture. Twolakh tractors per annum can besubsidized and used for mechani-cal application like ploughing, win-nowing etc., and simultaneouslycreate 2 to 3 lakh jobs for educat-ing unemployed youth.

India and Indian fertilizer indus-try should search methods to re-duce fertilizer subsidy which even-tually find its way into the coffers ofoverseas supplies who continue toexploit the Indian industry.

It is possible for India to emergeas the world’s food supermarket, ifit shows the resolve as India is theonly country in the world with suchecological and crop diversity,blessed with long hours of sun-shine, excellent irrigation, intelligentscientists, productive factories andhardworking farmers.

Senior VP, Sales & Marketing(Fertilisers), Coromandel Fertilisers

Limited, Hyderabad


The Seed that Changed the Face of Indian Agriculture:

Contributions of the Public Research InstitutionsDr HS Gupta, Dr Malavika Dadlani and Dr KV Prabhu

Genetic enhancement was themain technological intervention ef-fected through the NARS that en-abled the sustained Green Revolu-tion to happen in India, unlike manyother countries, where the sameoriginal seed source was suppliedat the same time. This was madepossible due to the development ofimproved crop varieties, using di-verse plant genetic resources andcombining the conventional andmodern breeding technologies,in conjunction with adequateuse of irrigation and fertil-izers, followed by the es-tablishment of a well-organized seed sec-tor. It is estimatedthat the direct con-tribution of qualityseeds alone to thetotal production isnearly 15-20%,which can be furtherraised upto 45% withefficient managementof other inputs.Hence, concerted ef-forts are made by theNARS in strengthening the seedsector of the country through� development and release of

improved crop varieties to suit

the needs of different agro-cli-matic conditions, particularlythe less favourable environ-ments.

� production of sufficient quanti-ties of high quality BreederSeed of these varieties

� horizontal spread of new vari-eties and quality seeds

through farmers’

participatory approach� training farmers to undertake

seed production for supportingthe seed sectors

Crop Improvement & Release ofNew Varieties

The system known as All IndiaCoordinated Research Project onvarious crops ( AICRP ), which func-tions through a sound scientificanalyses of the multi-location yieldtrials supported by a series of un-biased evaluations carried out byNARS partners for all involved an-cillary and supportive data rangingfrom agronomic situations, physi-ological manifestations, quality pa-rameters and pest & disease nurs-eries. This model has gained glo-bal recognition and is being adopted

by the international crop variety im-provement programmes. The

first AICRP (Maize) wasstarted at IARI by the

ICAR in 1957, whichwas followed bymany more in the60’s and 70’s, cov-ering all major fieldcrops.

This was furtherstrengthened by theestablishment of a

number of ICAR cropbased research insti-

tutes on one hand andSAUs on the other. The

efficient and well-orches-trated efforts of the NARS

resulted in the release of alarge number of varieties in all

major field crops, vegetables and

Crop Group VarietiesNotified

Cereals 1333Fiber Crop 385Forage Crop 162Millets 1060Narcotics 8(Other Crops)Oilseed 884Pulses 891Sugar Crops 70

Grand Total 4793

Table 1. Number of Notified Va-rieties of Agriculture Crops from1969-2009

Crop Group VarietiesNotified

Bulb Vegetables 38Cash Crops 3Cole Crops 47Cucurbits 117Flower Crops 4Fruit Crops 9Fruit vegetables 222Green leafy vegetables 27Medicinal and 1Aromatic CropsRoot vegetables 38Tubers and Rhizomes 50Grand Total 556

Table 2. Number of Notified Va-rieties of Horticulture Crops from1969-2009

Dr HS Gupta


horticultural species.The Government of India formally

associated in these seed buildingexercise by enacting the Seed Act(1976) that set up the standardsand mode of notifying varieties suit-able for cultivation in different partsof the country facilitating their seedproduction through the channels ofBreeders’ Seed, Foundation Seedand Certified Seed. The Govern-ment also facilitated through thisact the establishment of seed pro-ducing agencies such as NationalSeed Corporation, State FarmsCorporation of India, etc., and sup-ported the State Governments toestablish their own Seed Develop-ment Departments and SeedCertifcation Departments in addi-tion to seed production depart-ments. Thus the “Seed Chain” en-visaged by scientific breeding pro-cedures were supported by an in-frastructure within the public sec-tor that enabled “quality seed” stan-dardization as well as productionto help farmers access the im-proved varietal seed. By 2009, morethan 4,500 field crop varieties andmore than 500 varieties of horticul-tural crops were released and noti-fied by the DAC, Ministry of Agri-culture, Govt. of India. In additionto these, the SAUs and ICAR insti-tutes have also released a good

number of varieties for state releaseand notification. This has been thebackbone of Indian agriculture andlaid the foundation for a strong seedsupply system in the country.

Present Status of Seed Avail-ability

Currently, the global seed mar-ket is valued at Rs.1, 36, 000 crores($ 34 billion), of which the share ofIndian seed industry is valuedaround only Rs.5200 crores ($ 1300million) i.e., a meager 4%. In India,

hybrid seed market of importantfield crops viz., cotton, maize,paddy, jowar, bajra, sunflower etc.,plays a vital role, which contributemaximum share of 66.2% in valueto the total seed market, whereasopen pollinated varieties of cropsand vegetable account for about22.3% and 11.5%, respectively.

On the basis of the minimumseed replacement rate of 25% forself – pollinated crops, 35% forcross pollinated crops and 100%for hybrids, it is estimated that the

Crop 2005- 06 2006 – 07 2007-08Indent Prod. 2004-05 Indent Prod. 2005-06 Indent Prod. 2006-07

Cereals 11417.1 17360.4 13720.5 20032.5 16816.9 20413.9Pulses 4964.9 7255.9 5365.8 6906.7 7374.3 9137.9Oil seeds 13152.4 19879.6 15509.6 21673.5 21828.0 23775.6Fibre crops 108.8 173.9 186.6 435.7 69.9 216.0Fodder 302.5 371. 1 343.1 424.2 589.2 1213.8Vegetable 276.5 394.6 141.6 234.7 304.9 403.3Potato 21565.0 21020.0 17067.0 18947.0 17299.0 18669.0

Table 3. Present status of breeder production of major crops

Source : DAC. Govt. of India


quality seed requirement of thecountry is ~ 254 lakh quintal. Therequirement of seeds of major cropsin India and availability of certifiedseeds as in 2006 -07 for cereal,pulses, oilseeds and fibre cropsexhibited a gap of 50.79, 10.42,11.26 and 1.31 lakh quintals respec-tively. Based on the trend in breederseed produced and made availableagainst indents from 2005-06 to2007-08, it is expected that theseed requirement for different fieldcrops should be fulfilled in the nextfive years, assuming normal seedrates. In vegetable crops, totalquality seed produced from orga-nized and other sector is estimatedto be 8,852t as against the require-ment of 15,820t, and there isroughly 45% shortage in the seedrequirement. With respect to horti-culture crops, those that are veg-etatively propagated like banana,grapes, mango litchi, etc., the qual-ity planting materials required arelikely to increase manifold in thecountry by the year 2011–2012, andhas been estimated at 1622.3 mil-lions. The public sector needs toplay a bigger role in these seg-ments.

Role of the Public Seed SectorIndian public seed sector con-

stitutes big agencies like NSC,State Farm Corporations of India(SFCI) and 15 State Seed Corpo-rations (SSC). These corporationsproduce and market seeds of theplant varieties bred by the publicsector institutions i.e., the researchinstitutes financed by the ICAR and

the SAUs. The public sector re-search to develop new varieties aswell as Nucleus and Breeder Seedproduction is looked after by publicresearch institutions, under the ae-gis of ICAR and SAUs. The SAUsalso facilitate the quality seed pro-duction of the state released vari-eties. Nucleus seed from the re-spective breeder or authenticsource is used for the productionof Breeder Seed. Indents forBreeder Seed are placed by thestate governments to the DAC,Government of India, which passesit onto the respective institutionsunder NARS, through ICAR.Breeder seed production, as perDAC indent, is the mandate of theICAR. The Breeder Seed producedis allocated by the DAC to the in-denters, who should use it for theproduction of Foundation and even-tually Certified seeds. In case ofhybrids, the seed of parental linesis produced as Breeder Seed byICAR/SAU’s system which is madeavailable to seed agencies for pro-duction of Foundation and then hy-brid seed of Certified class. In or-der to strengthen the seed supplychain, ICAR introduced a MegaSeed Project on “Production of Ag-ricultural Crops and Fisheries” in2006.

There has been a steady in-crease in breeder production of all

Crop Requirement Production Other quality Seed shortage(tons) from organized seeds (tons) (tons)

sector (tons)Tomato 360 190 80 90

Brinjal 465 85 50 330

Chilli 200 68 80 52

Cauliflower 280 130 35 115

Cucumber 70 37 20 13

Muskmelon 110 37 40 33

Watermelon 320 135 100 95

Bottlegourd 615 105 100 410

Onion 1200 200 400 600

Okra 4250 1350 800 2200

Radish 650 300 200 150

Carrot 700 200 250 250

Beet root 400 100 120 180

Peas 6000 1500 2000 2500

Cabbage 200 80 60 60

Total 15820 4517 4335 6968

Source : DAC. Govt. of India

Table 4. Present scenario of vegetable seed production in India

Table 5. Farmers' participatory quality seed productionprogrammes of ICAR- SAUs

First year

Selection ofvillageTraining offarmersSupply of qualityseed* by SAUon Credit/Exchange basisMonitoring** ,On-farm Trainingand Farmers Fair

Second year50% seedpurchased anddistributed bySAU as TL seed

50% seedexchangedamong farmers

Third year50% seedpurchased anddistributed bySAU as TL seed


Fourth year

50% seedpurchased anddistributed bySAU as TL seed


FLDs of newlynotified varieties

* Breeder /Foundation/Certified/Test Stock seed** Regular visits of Crop Specialists for monitoring and training

Source : DAC, 2008; Report on State Seed Corporation


important crops over the years 2005– 06 to 2007-08. It may be seenthat there has been most signifi-cant increase in pulses, oilseeds& fodder crops, which have beenrecording the lowest average SRRin the previous years.

Vegetable Seed ProductionAccording to an estimate, the

total overall requirement of vegetableseeds is about 15820t (excludingpotato), which is expected to reach68000t by 2020. Most of the popu-lar vegetable hybrids and varieties,grown in the country are from theprivate sector. Though the publicresearch institutions have releasedsome excellent vegetable varieties,their share in the market is smallas compared to field crops. Thisis one area, where small farmerscan benefit by becoming seedproducers / entrepreneurs.

Farmers ParticipatorySeed Production

Since the use of farm-saved seed in the country, isestimated to be ~70%, thereis need to improve the qualityof farmers’ produced seed, par-ticularly in the low value, large vol-ume segment of nationally impor-tant crops such as cereals, pulsesand oilseeds, where OPVs still rulethe scene. Farmers’ participatoryseed production programme hasshown the potential to spread newvarieties and also enhance the qual-ity of farm saved seed used bymajority of the farmers in all partsof the country. This mechanism isalso supported by the acts con-nected to seed production, theSeed Act 1976 and PVPFRA (2001)wherein the farmer is legitimatelyentitled to produce seed of a vari-ety and sell it, distribute it andpopularize it. Thus, the introductionof new improved crop varietiesthrough this programme would helptheir quick spread on farmers’ fieldsand the further multiplication of farm-ers’ accepted varieties would retainthem for longer periods to harvesttheir economic benefits. Further,this programme enables to develop

Scientists-Farmers relationship,thus resulting in efficient transferand implementation of new tech-nologies, including IPM strategies,production technologies and con-servation practices and enables amechanism of feedback of newproblems to initiate meaningful re-search.

Farmers’ participatory seed pro-duction has been an importantmode in both the public and privatesectors, mainly through contractfarmers, who are the primary seedproducers. In the present era, ef-forts are being reinvigorated both bythe schemes introducedb y

t h eC e n t r a l a n dState Governments. Certified Seedproduction activities undertaken bythe farmers’ cooperative societiesand groups are also provided withfinancial support by the Govt. ofIndia in the form of subsidies andbank loans for the production, pro-cessing, transport and storage fa-cility development. These efforts areexpected to organize the informalseed supply system, which catersto nearly 75% of the total seed re-quirement in the country and alsoprovides a means to develop a vi-able enterprise enhancing ruralemployment opportunities.

Under the Mega Seed Projectof ICAR, several models haveemerged for quality seed produc-tion by the SAUs through farmers’participation. An average of 1 lakh

quintal of truthfully labeled (TL) seedof field crops, vegetables and horti-culture spp. is annually producedthrough farmers’ participation in 75centres located at ICAR institutesand SAUs.

Prominent among these areUAS, Dharwad and JNKVV,Jabalpur, who have set records inquality seed production. The part-nership programme of IARI not onlyhas resulted in an average addi-tional annual production of about2,500q of wheat, 3,000q of rice, 80qof pulses and 100q of mustard seedby the farmers, but also proved tobe an efficient way of popularizingnew improved varieties, thus in-creasing the Variety ReplacementRate (VRR) along with SRR.

A major impact of this exer-cise is a double advantaged

output from rural farm sec-tor on national agriculture.The first advantage is di-rect, where the entire re-gion of the village wit-nesses the singular valueaddition to a crop produceby having uniform growth

and purity. The second ad-vantage is the confidence that

gets built in those farmers whoproduced the seed for becoming

small scale industrialists. In order to spread the new im-

proved varieties in the shortest pos-sible time, partnership between thepublic research institutes and pri-vate/public sector seed companieswill be a mutually beneficial step. Itis amply demonstrated by the widespread cultivation of rice hybridPRH-10 within 3 years, followingIARI’s collaboration/ partnershipswith IFSAA and 15 seed producingcompanies, both in private and pub-lic sectors for Foundation and Cer-tified/TL seed production, respec-tively.

*Director, Indian AgriculturalResearch Institute, New Delhi


India’s gamble with monsoon hasalways rendered the country withuncertain food grain production.With India’s population to catapultto a gigantic figure of 1.63 billionby 2050, it rests upon theshoulders of the country’s dwindlingland resources to cater to the fooddemand of the surging human race.This requires a mammoth effort fromthe food producing machinery of thecountry - an effort which has to beinclusive of the technologicalinnovation in this field and to thefullest possible extent.Unfortunately, most of the farmersin this country are still reliant onthe whims and fancies of themonsoon to salvage their crops.Water being a critical input in raisingcrops can influence yield and otheragronomic conditions to a goodextent. Though the conditions havechanged with the adoption of highyielding varieties and hybrids whichare input intensive, majority of thefarming tracts haven’t stillespoused an organized irrigationsystem.India accounts for 16% of the worldhuman population and 30% of the

cattle and the country is endowedwith just 4% of water resources.Out of the total water resourcesavailable, only around 3 % goes into irrigation and a major portion topublic supply. There are alsocompeting demands from industry,livestock, domestic consumption,commercial and other purposes. Soeven if full irrigation potential isexploited, about 50% of thecountry’s cultivated area will stillremain unirrigated. The future isalso not going to be any different.The share of water for agriculturewould reduce further with increasingdemand from other sectors.Although the demand for water in

agriculture sector is estimated toincrease during the period 2010 to2050, the share of water foragriculture is expected to reducefrom the present level of 85% to71% by 2050.

Water becoming a resource indistress, efforts should bedirected to manage theavailable water resourceseffectivelyAccording to research done by theInternational Water ManagementInstitute (IWMI), one-third of theworld’s population will face absolutewater scarcity by the year 2025.Among the worst hit will be regionsin Asia, the Middle-East and Sub-Saharan Africa, home to some ofthe largest concentrations of ruralpoverty in the world. This is sendinga distress signal to the millions inthe farming community as they willhave to make suitable interventionsto manage this scant resourceeffectively.Micro irrigation technologies canprovide a reasonable solution tothis emerging threat. Thesetechnologies can improveproductivity; raise incomes throughcrop yields and outputs andenhance food security ofhouseholds. Numerous studies

Micro IrrigationWay to judicious water use

Water Requirement for Various SectorsSector Water Demand in km3 (or bcm)

Standing Sub- Committee NCIWRDof MoWR

2010 2025 2050 2010 2025 2050

Irrigation 688 910 1072 557 611 807

Drinking water 56 73 102 43 62 111

Industry 12 23 63 37 67 81

Energy 5 15 130 19 33 70

Others 52 72 80 54 70 111


have established the gains frommicro-irrigation adoption andseveral government and non-government organizations areengaged in actively promoting thistechnology.Micro-irrigation technologies can bebroadly categorized into two typesbased on their technical andsocioeconomic attributes: low-costmicro-irrigation technologies andthe commercialized, state-of-the-artmicro-irrigation systems. Low-costsystems include the Pepsee easydrip technology, bucket and drumkits, micro sprinklers, micro tubedrip systems and others that havebeen designed by organizationssuch as the InternationalDevelopment Enterprises (IDE),along with innovative farmers. Themore sophisticated, capitalintensive systems are conventionaldrip and sprinkler systems.Low cost irrigation systemsobviously have been directed toincrease the acceptability of thetechnologies by the poor farmers –those with smaller land holdingsand lower returns. Farmersgenerally can recover the initial costof investment within one to threeyears depending on the type ofcrops to be grown and subsidiesand options for financing fromorganizations and governmentschemes. These schemes andsubsidies will serve as determiningfactors in decision making by thefarmers. In some cases, low costtechnology adoption serves as astepping stone for capital intensiveconventional technologies.

Micro irrigation technologies havebeen promoted primarily as a meansto increase the water use efficiency.In the conventional systems ofsurface irrigation including flood,canal or others, there are chancesof under or over irrigation. The waterloss through seepage or percolationor evaporation is a very realpossibility and the resultant wateruse efficiency of the crop isconsiderably compromised. Aswater is wisely spent on the cropthrough this technology, the yieldof the crop is enhanced. Dripirrigation saves 25%–60% waterand steps up yield by 60%.

Sprinklers on the other hand areuseful in undulating land withcereals crops and saves around25%–33% of water.This technological intervention hasbrought a perceptible change in thecropping pattern. Among certainadopters of micro irrigationtechnology, a tendency to shift theircropping patterns to high-value,water intensive crops and also toelevate their production systems tomore crop intensive cultures havealso been noticed. Not only wasthere a positive shift in the croppingpractices, yields also werereported higher when drip irrigationwas used. This increment in yieldsallow for multiple crops to be grown;for crops to be grown undercircumstances where it was notpossible when there is an earlywithdrawal of the monsoon; and forcropping to be intensified in thesame field. Farmers who adopt thesystem also have the possibility ofextending irrigated or cultivatedarea on their land. This has asignificant effect on the farmers’

Some of the major players in micro irrigation in India with their estimated marketshare

Company Market Share Product Range

Jain Irrigation 32 - 35% Drip + Sprinkler

Netafim 14-15% Only Drip

Plastro Plasson 8 - 9% Only Drip

Nagarjuna 4 - 5% Drip + Sprinkler

Parixit 3 - 4% Drip + Sprinkler

Premier 4 - 5% Drip + Sprinkler

Others 25 – 27% Drip + Sprinkler

Current size Rs. 650 crores

Industry growth 20-30% annually

Expected size by 2010 Rs. 1500-1600 crores

Existing subsidy market Rs. 550 crores

Industry Watch


incomes, as higher yields bringhigher earnings. The improvementin yield is not only in quantitativeterms but also in qualitative terms.The drip systems have a potentialto improve the quality of harvest.Being said that, shriveled, dried orrotted plant produce are less likelyto be produced as these systemsare sort of precision agriculture andonly the precise quantity of wateris applied at regular intervalsdirectly to the root zone and lesswater is lost due to conveyance.Another glaring advantage of microirrigation is that they help to extendwater use in times of water scarcityor drought. They allow farmers toplant earlier so that the crop isalready established at the onset ofrains and can make efficient use ofrainwater. This helps to avert a croploss, or a decline in yield that couldarise from a dry spell or the earlywithdrawal of rain. An early harvestcan help farmers avoid many pestsand diseases and most importantlyhelps to reduce labour costs. Also,the lower energy expended in usingmicro irrigation will have an effecton the overall cost of production.So these systems can help inimproving livelihood security offarmers and in increasing incomes.

Although the realized benefitsof micro irrigation are aplenty,

the extent of adoption in Indiastill presents a bleak pictureMicro irrigation industry of India isstill at a very rudimentary stage.Right now, the industry is in the fasttrack, where it is expected to grow20-30% annually. Though theinformation on the actual size of theindustry is unavailable, it isestimated from various sourcesthat industry’s current size isaround Rs.650 crores. Initiativesfrom various state governments andcentral government will play a majorrole in boosting the industry furtherand it is expected to grow up tothe size of Rs.1500 – Rs.1600crores by 2010.

-State wise acreage under micro irrigation 2007-08 In India, micro-irrigationtechnologies have been marketedfor more than three decades. Themain vehicle of government policiesto promote micro-irrigationsystems are product subsidies—in certain cases up to 90 percentand the Indian micro irrigationmarket comprises of both subsidyand non – subsidy players. Theexisting subsidy market is aroundRs.550 crores. The players whofulfill certain essential criteriaspecified in the guidelines laid outby various State governments andthe central government sponsoredschemes are entitled to subsidies.They specifically operate in stateswhere State governments haveallocated huge budgets for specialprojects to cover more and morearea under Micro irrigation. Thismarket is estimated to grow at afaster pace with the increasingnumber of projects by Governmentsof various States, like AP,Karnataka, Tamil Nadu,Maharashtra, Gujarat andRajasthan with estimatedallocations of Rs.2500 croresduring the tenth plan. Several otherState Governments have alsomade allocations under the NHMprovisions. However, there has beena lukewarm response to suchinitiatives from farmers, especially


smallholders. This can be attributedto lack of access to groundwater,lack of credit, crop specificity of theavailable micro-irrigationtechnologies, lack of awareness,poor product quality and absenceof adequate credit facilities.Also, there exists a non-subsidymarket of around 100 croresoperating in Tamil Nadu, Haryana,Rajasthan and Maharashtra, wherethey occupy more than 35% of themarket. The non subsidy playershave an edge over subsidy playersin these regions. Many of thefarmers avail their services so asto avoid the hassles of availingsubsidy and also to install them atlower price from non – BIS players.More over, they get fasterinstallations from them.The micro irrigation market is alsoreplete with organized and

unorganized players. There aremore than 50 players in organizedmarket; these are the players whohave registered their products underGOI. In unorganized market, thereare more than 100 players withsmall base and manufacturing,ranging from few components to fullsystems. This market includesplayers who are using localtechnology and are more concernedabout small regional demand.

As micro irrigation techniquesstands a good chance to salvagemany water deficient fields,there should be concerted effortto popularize these techniques

in IndiaMicro irrigationtechniques areprimarily targetedtowards smallcultivators whodesperately needinstitutional andfinancial supportto make suchdecisions. Theirresources interms of technical know how andcredit is limited. Hence the mostimportant aspects that influencethe adoption of micro-irrigation arethe efforts of policymakers andorganizations in long-term serviceprovision and training. Policiesmust have a strong emphasis onpoverty alleviation by incomegeneration for poor farmers, whilebuilding awareness and

demonstrat ingthe potential ofmicro-irrigationtechnologies.P o l i c y m a k e r smust understandthat promotingmicro-irrigationt e c h n o l o g i e sthrough capitalinvestments thatoffer returns over8-10 years is notthe way forward

while dealing with resource hitfarmers. Even when they areconvinced about the returns,farmers might not be in a positionto incur huge capital costs. Theyare more likely to experiment withlow cost options that cut initialcapital costs by having lowerrecurrent input costs promisingreturns within a year. Once thereturns start flowing in, farmers maydecide to shift to better systems.Micro irrigation technologies areseen as novel and high riskadventures which need to beintroduced to the farmers in a properway. Mostly, when such kinds ofinitiatives are launched, they wait

for the others in their neighbourhoodto adopt them first before trying outfor themselves. So some programsshould be tried to overcome thisobstacle by providing specialincentives to the first movers. Also,demonstration plots withinstitutional support can display themethod and results to the fellowfarmers.The market for micro irrigationproducts is experiencing its secondmajor shift today. There is aconsiderable demand for locallyassembled drip kits or low costpackages than the sophisticatedcustom built drip irrigation solutionsfor the commercial farmers. Sothere is a need to transfer thetechnology into the hands of theusers. Not only should the farmersbe educated on the methodologybut they should also be made awareof the actual working principle andthe working parts so that in case ofrepair, they are not hoodwinked.Water scarcity need not be brushedaside as an impending problem. Thethreat is real and has alreadyarrived. Although for rainfed areas,switching directly from anunirrigated mode to a microirrigated mode is a big leap, thesituation warrants this shift. As ithas become evident that our foodreserves in the current rate of growtharen’t going to do any help to thefuture population, we need to mendour ways and be frugal in spendingwater, which in days to come willbe a determining factor in raisingproductivity.



Credit crunch is probably themost uttered word thesedays. The credit crisis is a

global phenomenon and invariably allthe sectors are facing the pinch ofthis deepening crisis. Agriculture, asector which employs the most workpopulation in this country, has beenin this situation for quite some time.

Still we haven’t got the right answersto our woes. The workers at the grassroot level bear the brunt of this creditcrunch. Rising prices of thecommodities, fuel, transportation,long due debts are some of the woesof the farmers that need a speedydispatch of cash. Though our focusthese days have been on increasing

the farm productivity, the effort needsmonetary support as well.

The money lenders ruled the roostin the pre colonial era. But theirmonopoly is being graduallydisintegrated by the variousinstitutional reforms developed overthe years by the ruling authoritiesThe rural credit flow was the playground of the rural money lendersuntil 1904 when the colonialgovernment enacted the Co-operativeSocieties Act in 1904 with theintention of making the co-operativesthe premier institutions for creditdisbursement. Later this approachgave way to the three-tier structure in1915. Government was alsoproviding agricultural loans usuallycalled Takkavi loans, which havesince been discontinued.The Independent India gave a majorthrust on growth with equity and aninstitutional credit was perceived fairlynecessary to meet the seasonalcredit requirement of agriculture. Theineffectiveness of the co-operativeswas highlighted by the All India RuralCredit Survey (1951) of the RBI andthe rural credit survey of 1966, buttheir clout in agriculture credit washighlighted. The Imperial Bank wasnationalized as SBI, which was thenshowcased as a vehicle for ruralbanking. In an effort to organize therural credit system, many Stategovernments legislated for theregistration and regulation of moneylenders but with little success inimplementing it. Nationalization ofbanks in 1969 gave a boost toexpansion of banks and banking inrural areas.The Reserve Bank in 1975 institutedAgriculture Refinance andDevelopment Corporation (ARDC)and transferred its role in agriculturalcredit to this newly formedorganization. Soon thereafter,legislation was enacted to createRegional Rural Banks, withparticipation from Central and Stategovernments and the nationalizedbanks, with their network spread

Agriculture Credit: Opening New Vistas

Kisan Credit card (KCC) scheme at a glance� Type of revolving cash credit facility with unlimited withdrawals and

repayments.� Meet the production credit need, cultivation expenses, and contingency

expenses of the farmers.� Limits based on the basis of operational land holding, cropping pattern

and scale of finance. This limit is inclusive of 20% of production credit.� Each withdrawal to be paid within 12 months.� Card valid for 3 years subject to annual renewals.� Credit limits can be enhanced depending on performance and needs.� Rescheduling is also possible depending upon the situation. If for ex-

ample the crops fail due to a natural calamity and the farmer is not able torepay his loan, then he could get an extension of up to four years.

� Cash withdrawals through slips accompanied by card and passbook.� A credit cum passbook would be issued.� All branches engaged in agricultural lending could issue Kisan Credit

Cards.


almost all over the country.Subsequently, the ARDC wasconverted into NABARD, whichcontinued to get the lines of creditfrom the World Bank. The WorldBank’s lines of credit were, however,discontinued on the ground thatfunctioning of co-operatives had beenless than acceptable.Simultaneously, the directed credit inthe form of priority sector lendingcontinued and the administeredinterest rate regime lasted.During the reform period, capital wasinfused into the RRBs and theNABARD. While the priority sectorlending continued, the administeredinterest rate regime was dismantled.To make up for the shortfall in thepriority sector lending by the banks,the Rural Infrastructure DevelopmentFund (RIDF) was initiated to ensurethe envisaged flow of bank resourcesto agriculture through theintermediation of the NABARD andthe State governments. A system ofSpecial Agricultural Credit Plan wasalso introduced. Innovations in thearea of rural credit included KisanCredit Cards and encouraging bank-SHG linkages. It may also be ofinterest to note that many District andState Co-operative Banks are yet tomeet the applicable minimum capitalrequirements.More recently, since 2004, vigorousefforts have been made to more thandouble the credit flow to agriculture.Emphasis has been laid on soundcredit culture, effective credit deliveryand appropriate credit pricing. Newinstruments for financial inclusionsuch as General Credit Cards andno-frills accounts were initiated.Micro finance programme wasintensified and new guidelines forbusiness facilitator model wereissued. Use of technology for ruralbanking is being encouraged.Special Area Plans for banking inseveral states such as Uttaranchal,North Eastern States, Chattisgarh,Bihar and Andaman-Nicobar havebeen formulated to suit the localconditions. In terms of institutionaldevelopment, consolidation of theRRBs, revamping of the urban co-operative banks as per the visiondocument, revival of rural co-operative

credit structure as per theVaidyanathan Committeerecommendations, a plan forrestructuring of long-term lendinginstitutions for agriculture, and arevisit to the prescriptions relating tothe priority sector lending areunderway. Above all, as per theGovernment of India announcementin 2005, it has been decided tosubsidize the commercial banks andNABARD to enable provision ofshort-term credit at 7% interest rateto the major segment of the farmers.In brief, there have been vigorous anddetermined efforts towardsexpansion of rural credit, especiallythrough rural banking.

Banking sector nation wide has nowchanged their perspective inhelping out the rural populace. Moreand more schemes are nowdeveloped and channelled throughthe banking sectorBygone was the era when bankswere concerned with money mattersalone. Now, the banking sector hasparted their old ways and is nowtreading newer paths. Banks havenow donned on some new roles -Marketing, training and consultancy,insurance and financing forinfrastructure via Private-publicparticipation. Predominantly, theIndian banking sector consists ofcommercial and cooperative banks.Cooperative banks were primarilyrecognized for their role in financingthe rural economy. But with changingeconomic situations, commercialbanks too have come forward to

extend credit to agriculture.The public sector banks hadextended Rs.1549 billion,constituting 15.22 per cent of the netbank credit, to the agriculture sectortowards the end of March 2006.Private sector banks had alsofollowed the same line and haveextended Rs.361.8 billion toagriculture by the end of March 2006,thus constituting 13.5 per cent of netbank credit. Up to November 2007,the flow of credit to agriculture fromthe scheduled banking sector wasRs.1493.4 billion, about 61% of theannual target. Enthused by thisspectacle, the Budget 2007-08 did seta higher target of Rs.2250 billion fordisbursement of credit and a furtheraddition of 5 million new farmers asborrowers to the banking system, toimprove credit flow to the agriculturesector. In Budget 2006-07, banks(including cooperative banks andRRBs) were urged to disburseRs.628.1 billion as credit toagriculture sector during 2006-07.The overall achievement during2006-07 was Rs.2033 billion. Also,new farmers covered under theinstitutional credit system were 8.35million against the target of 5 million.The recent years have seensubstantial increases in the flow ofcredit from commercial banks toagriculture and allied activities. Butthey are still far behind their target of18% as set by RBI. Also, the numberof bank branches at rural centers hasdecreased from 35,329 in 1994 to32,481 in 2002.Kisan Credit card (KCC) scheme is

Table 4: Loans given to farm sector in different years

Years Co-Op banks Regional ruralCommercial Totalbanks banks

1997-98 14085 2040 15831 319561998-99 15957 2460 18443 368601999-00 18429 3329 22854 446122000-01 21909 3807 27788 535042001-02 27080 4956 34735 667712002-03 23716.4 6069.79 39773.6 69592003-04 26958.79 7581.15 52440.85 869812004-05 31424.23 12404 81481.41 1253092005-06 39403.77 15222.9 125858.9 1804862006-07 42480 20435 140382 2032972007-08 33070.17 15924.56 88764.83 137760

Source: Reserve Bank of India


another gesture that has been madein order to ease the flow of credit tothe farming community, the creditneeds of whom are distinctlyseasonal and varied. This schemewas introduced by Government ofIndia in consultation with the RBI andNABARD during 1998-99. Of the total66.6 million cards issued as on 31March 2007, co-operative banksaccounted for 49 per cent of theshare, followed by commercial banks(38%) and RRBs (13%).A revolutionary step in making thecredit access is the microfinanceprogramme. NABARD has beenmaking continuous efforts throughits micro-finance programme forimproving the access of the ruralpoor to formal institutional credit. TheSelf Help Group (SHG) -BankLinkage Programme was introducedin 1992 as a mechanism to providethe poor in rural areas, at theirdoorstep, easy and self-managedaccess to formal financial serviceson a sustainable basis by enablingthem to gain access to bankingservices in a cost-effective manner.Around 547 banks (47 commercialbanks, 158 RRBs and 342 co-operative banks) are now activelyinvolved in the operation of thisprogramme. As on December 2007,30.51 lakh self-help groups (SHGs)availed bank loans of Rs.20,114crores. The average bank loanavailed per SHG and per familyamounted to Rs.65,924 andRs.4,078, respectively. During 2006-07, as against the target of 3.85 lakhnew SHGs, as on December 31,2006, as many as 2.38 lakh SHGswere credit linked and bank loans ofRs.13,511.86 crore were disbursed.There are about 498 banks (50commercial banks, 96 amalgamatedRRBs and 352 cooperative banks)actively participating in microfinanceprogrammes.

Various Insurance schemes havebeen introduced over the years tocope with agri-risk factorsAgriculture is a field that has beendominated by factors beyond thecontrol of humankind. Naturaldisasters of the order of flood,drought, forest fire, earth quake,

landslides have been reasonsenough for farmers to loose their cropand their livelihood. Several bioticfactors such as pest and diseasesalso possess the potential to deprivethe farmers of any possible income.This unsteady and wavering field sorequires a back up, something whichvouches for this unsteadiness. Sowith best intentions, severalinsurance schemes have beenintroduced by the government.To enlarge the coverage in terms offarmers (loanee and non-loaneeboth), more crops and more risks,Government introduced a scheme (inplace of Comprehensive CropInsurance Scheme-CCIS) titled,‘National Agricultural InsuranceScheme (NAIS) – (Rashtriya KrishiBima Yojna)’ from Rabi 1999-2000season in the country. This iscurrently being implemented by 23States and 2 Union Territories. Atpresent, 10% subsidy in premium isavailable to small and marginalfarmers, which is to be shared equallyby the Centre and StateGovernments. The NationalAgricultural Insurance Scheme(NAIS) scheme, since its inceptionand until rabi 2006-07, about 97.1million farmers have been covered.This scheme covers all food grains,oilseeds and annual horticultural /commercial crops for which past yielddata are available for an adequatenumber of years. The coverage areais 156 million ha and the sum insuredis Rs.926 billion. Claims to the tuneof about Rs.98.5 billion have becomepayable against the premium income

of about Rs.29.4 billion benefitingnearly 27 million farmers.Sixty five percent of Indian agricultureis heavily dependent on naturalfactors, particularly rainfall. Studieshave established that rainfallvariations account for more than 50%of variability in crop yields. To mitigatethe variations in rainfall affecting theyield parameters, a scheme- VarshaBima was introduced in 2005. VarshaBima covers anticipated shortfall incrop yield on account of deficit rainfall.Varsha Bima is voluntary for allclasses of cultivators who stand tolose financially upon adverseincidence of rainfall and can takeinsurance under the scheme. InitiallyVarsha Bima was meant forcultivators for whom NationalAgricultural Insurance Scheme(NAIS) is voluntary. Sookha SurakshaKavach is also another exclusiverainfall insurance product for droughtstricken farmers of Rajasthan.Similarly there is also RainfallInsurance Scheme for CoffeeGrowers which was introduced byAgriculture Insurance Company ofIndia Ltd to provide insurance coverfor possible losses in coffee yieldarising out of rainfall risks. The riskcovered is deficiency in rains duringBlossom and Backing periods aswell as excess rains during MonsoonPeriod (July and August inKarnataka).Another broad based scheme isWeather Based Crop Insurancewhich aims to mitigate the hardshipof the insured farmers against thelikelihood of financial loss on accountof anticipated crop loss resulting fromincidence of adverse conditions ofweather parameters like rainfall,temperature, frost, humidity etc. Itprovides payout against adverserainfall incidence (both deficit &excess) during Kharif and adverseincidence in weather parameters likefrost, heat, relative humidity, un-seasonal rainfall etc. during Rabi. Itis not Yield guarantee insurance.Another weather insurance schemeis the Rabi Weather Insurance, whichis a mechanism for providing effectiverisk management aid to thoseindividuals and institutions likely tobe impacted by adverse weather


incidences. Wheat, Mustard, Gram,Potato, Masoor, Barley and Corianderare the major Rabi season cropsmostly in the states of UP, MP,Maharashtra and Rajasthan. Thesecrops are extremely vulnerable toweather factors, such as excessrainfall, frost, and fluctuation intemperature etc.Several specific crop basedinsurance schemes are alsoavailable. One such scheme isWheat Insurance Policy which isUnique Index insurance productbased on biomass (NormalizedDifference Vegetative Index) andweather parameters like temperature& rainfall. Mango Weather Insuranceprovides protection against adversedeviations in a range of weatherparameters like frost, temperaturerange, rainfall, wind speed etc. duringmango flowering to harvest in selectlocations of Andhra Pradesh,Maharashtra & Uttar Pradesh. PoppyInsurance scheme is applicable toPoppy crop cultivated by the farmersin the areas notified by theGovernment of India, under licenseissued by the Central Bureau ofNarcotics (CBN). Loss or damage tothe insured Poppy crop occasionedby natural calamities like Flood,Cyclone, Storm, Frost and Pest &diseases etc., leading to uprootingof crop before commencement oflancing operation, under thesupervision of CBN.Another interesting insurancescheme brought forward by theAgriculture Insurance Company ofIndia Limited (AIC) is the Seb BimaYojana. Adverse weather conditionslike inadequate Chilling Units

Accumulation, TemperatureFluctuation, Inadequate Rainfall andHail storms during flowering & fruitdevelopment many a times hamperthe productivity of apples leading tofinancial insecurity among the applegrowers of Uttrakhand. This riskmitigation tool in apple is designedin collaboration with UttarakhandState government for the Applegrowers and producers inUttarakhand, whose produce/ yieldsare likely to be affected by the adverseweather conditions.There are also several otherinsurance schemes targeted forspecific crops such as potatoinsurance, Bio-Fuel Tree/PlantInsurance, Pulp wood TreeInsurance, coconut insurance andrubber insurance.

Though many strides have beenachieved in mobilizing credit to therural areas, there are several areaswhich needs to be improvedtrimmedWhile defining a credit policy, therecannot be a uniform system of ruralfinancial system across the country.On the contrary, it should be flexibleand decentralized, suited to the localsocioeconomic milieu. Smallborrowers are the discriminated lotand hence policy emphasis on themshould continue. Any attempt by thepolitical parties to waive the debtsshould be opposed as it willencourage non repayment of loans.The role of non formal organizationshould be emphasized as the poorneed their help in availing institutionalcredit and they can serve as a friendlyintermediary.

Group approachto lending hasbeen found to becost -e f fec t ivewhere the rate ofrecovery is alsohigh and thelender’s risk low.So promotion ofgroups ofhomogeneousb o r r o w e r s(produce based,service based,caste based,

village based, cluster based,vertically integrated or horizontallyintegrated) is a viable option whichneeds to be further exploited. InvolvingNGOs or rural educated youths fororganizing farmers or rural familiesin groups, scrutinizing applications,and disbursing loan and effectingrecoveries may help financialinstitutions in reducing their lendingcosts. As the risks for lenders andborrowers are considerably higher inagriculture, apart from group lending,insurance can be considered as animportant instrument, the popularityof which needs to be increased withproper awareness campaign.The commercial banks while dealingwith agriculture credit should recruitagricultural graduates for ruralbranches and should take the helpof local NGOs, self-help groups orvillage development functionaries inthe appraisal of loan applications tosave time and cost. RRBs should begiven greater autonomy and flexibilityin planning and lending policies, torestore their comparative advantagein rural lending. The cooperative creditsystem should be rejuvenated byrecapitalization and giving thecooperatives greater autonomy andinfusing greater professionalism.Agriculture is an important source ofincome for majority of the populationand will continue to remain so formany years to come. Globalizationand economic liberalization hasopened up many new vistas for thisvocation. But at the same time thishas also exposed a deeper problemwhich has been left under attendedand many times unattended – Creditcrunch. Even though recent yearshave seen a perceptible increase inthe flow of rural credit frominstitutional sources, the share of theinformal sector, notably traditionalmoneylenders and traders, infarmers’ outstanding debts remainas high as 43.3 per cent at the all-India level. This is a disturbing figureconsidering the exorbitant rates ofinterest which is estimated to be ofthe order of 18% and 36%. Aneffective mechanism is still neededto revamp and rejuvenate this sector,which will eventually help to unlockthe true potential of this industry.



Public-Private Partnership:

A Boon for Agriculture

Vishal Khullar∗

Independence, Green Revolution andGlobalization (WTO) are the threeevents in agricultural history of India,which have changed the global im-age of the country from ‘food-depen-dent’ to ‘food self-sufficient’ nation.The three events are in sequenceand are inter-related. After the Inde-pendence had been achieved, therewas a challenge to feed the starvingcountrymen. To meet this challenge,the idea of Green Revolution evolved.It fed the country. Its momentum drovethe rural economy for decades. Butoverall, economy of India was in verybad shape when the World Trade Or-ganization (WTO) Agreement wassigned to get rid of the financial bur-den of World Bank (International Ru-ral Development Bank) and Inter-national Monetary Fund (IMF). Fi-nally on January 01, 1995, WTO wasimplemented in the country.

The dawn of Globalization erabrought not only relief from the debtof International Agencies, but alsobrought new challenges to meet theglobal standards. It was déjà vu ofwhat happened in 1947. Now, thechanges were there. There were nostringent trade restrictions acrossborders. The concept of market wasglobalized. All the Infrastructure, Ac-tivities, Human Resource, Proce-dures, etc., were to be moulded ordirected towards the new path. Thispaved the path for openness in theprocedures. Finally, it ended the pro-cedural bottlenecks like licensingwhich was a hindrance for privateplayers.

Now the private companies, Multi-national Corporates in particular, areplaying important role and pos-sesses significant share in the agri-culture sector. Corporates participatein almost all activities related to agri-cultural inputs. Machinery, tools,implements, seeds and fertilizers arethe areas where the involvement ofthe private sector was known tradi-tionally, even before Globalization.

Traditionally, the public sector in-cluding State Agricultural Universities(SAUs), Indian Council of Agricultural

Research (ICAR) and Deemed Agri-cultural Universities had monopoly inthe area of agricultural research &development and extension activities.After the Liberalization era, multi-na-tional companies were found to beoriented towards Research & Devel-opment and Extension Activities.There was a role-shift. With thechanging scenario and needs, thePrivate sector excelled and got aheadof the Public Sector within less thana decade’s time. Due to better plan-ning, appraisal, implementation,monitoring, infrastructure, financing,marketing, evaluation and simplerprocedures, huge-profits were madethat further led the sector towards bet-terment, leaving public agencies far

behind even in Research and Devel-opment & Extension Activities.

But one thing that the Private sec-tor could not achieve like public sec-tor, even with a decade, is hard-earned rapport of public agencieswith the farmers. From 1960s on-ward, public agencies are dealingwith farmers and farmers have im-mense belief in these agencies. Adecade’s experience has taughtthem the lesson that some notoriousprivate players may cheat them andthis experience has hurt not onlythem, but also the genuine privatecompanies. For adoption of any newtechnology, farmers do consult thepublic agencies. This situation hasnecessitated the role of Public sec-tor. On the other hand, Global sce-nario has proven the working of pub-lic sector as ‘inefficient’ for imple-mentation of projects and has desig-nated the role of Private sector as

necessary for implementation pur-poses.

In the present situation of need,there is a way for which, will is de-sired. The way is Public Private Part-nership (PPP) and is commonly usedby policy makers and scholars as asolution to fight against the woes offarming community. A number of ex-amples can be cited where PPP hasproduced wonderful results in theagriculture sector. After all, PPP hasits roots in economic history of thenation.

The very crux of existence of Pub-lic sector lies in supporting the Pri-vate sector so that the Public sectorcan initiate and carry out invest-ments in those areas where profit-

making is rather impossible task, theincentive for which the Private sectorworks. Hence, Public sector may nothave efficient-role of profit making butits social justification cannot be ig-nored. Both the sectors have theirown merits and limitations. Both arenecessary for growth and develop-ment of agricultural sector in the Glo-balized scenario of today’s world.Both sectors have their Brandnames- Public for Authenticity andPrivate for Efficiency. Therefore, thePublic agencies should take up therole of authentic monitoring of theprojects, while Private should be al-lowed the implementation job.

Let’s remember Public PrivatePartnership as the mantra for anotherGreen Revolution!

∗∗∗∗∗ Business Manager, Centre forCommunication & International

Linkages, PAU, Ludhiana


Even after years, agriculture stillclaims to be the backbone ofthe rural community in India.

Agriculture is the income provider formore than sixty five percent of thepopulation. Although the contributionof the agriculture to Indian GDP hasgone down considerably in the lastfew years, this sector continues to bethe largest economic sector in India.The diminishing clout of thisproletarian sector in India’s bourseshas raised concernsconsidering the dependencyof two thirds of the Indianpopulation on it for survival.So discussions onsustainability, biodiversity,hybrid varieties, transgeniccrops, enhancing productivityare doing rounds in thescientific circles and amongpolicy veterans. Amidst thesetalks of injecting prosperityinto the Indian farmingscenario, the relevance ofplant protection in savinglosses amounting to croresof rupees has been vastlyundermined.The crop losses due to pests,diseases and weeds areapproximately assessed tobe in the range of 10-30% ofcrop production. Whentranslated in to numbers, thiswill amount to Rs.90,000crores per annum, accordingto a report of Parliament'sStanding Committee onChemicals - the result ofdepriving around 80 per cent of thecultivated area of proper crop-protection measures! “Theappropriate use of pesticides is aninsurance against losses by insectpests and diseases. As reported bythe Union Minister of Agriculture whileresponding to a starred question No.62 in Rajya Sabha on 2 March 2007,the crop losses due to pests, weedsand diseases are approximatelyassessed to be ranging between 10

to 30% of crop production. If weconsider, on an average, crop loss of20% , and the present gross value ofour agriculture produce as Rs. 7 lakhcrore, the loss comes to Rs.1,40,000crore, which is very huge. Even if wecould save 50% by using plantprotection chemicals, it will addRs.70, 000 crore additional incometo our farmers. At a time, when all ofus are concerned about NationalFood Security, can the country afford

these losses?It was therefore, expected that theGovernment would make specificbudgetary provisions in this InterimBudget for educating the farmersabout assured and judicious use ofpesticides, to the extensionpersonnel that pesticides use is animportant component of theIntegrated Pest Management.Further, instead of step-motherlytreatment to agro-chemical industry

by levying 14% Excise Duty on Agro-Chemicals Industry, it should beequated with the Fertilizers Industryfor subsidy, excise duty, VAT etc. Suchprovisions would have provided apolicy framework for those who wouldbe presenting the Budget 2009-10after the new Government is formed,”argues Mr. R.G. Agarwal, Chairman,Crop Care Federation of India.Not only does the sector incurmonumental monetary losses due to

these factors, as anindustry it is letting awaythe spectacular exportopportunities under theliberalized WTO regime.The export marketdemands the products tobe on par withinternational qualitystandards. The discerningIndian consumers alsoexpect the commodities tobe of good quality.Moreover, in this era whenthere is mountingpressure on each unit ofcultivated land to producemore, it is only logical toassume that saving theselosses is as good astrategy as increasingproduction. Appropriatecrop protection strategiesare a good way to beginwith.

The current thrust areain plant protection isstrengthened around

some great idealsThe Indian government has realizedthat plant protection demandsconsiderable attention. The majorthrust areas of plant protection inIndia are promotion of Integrated PestManagement (IPM), ensuringavailability of safe and qualitypesticides, streamlining thequarantine measures and for humanresource development includingempowerment of women in plant

Saving Crop Saving India


protection skills. The schemes arebeing implemented by PlantProtection Division of the Departmentof Agriculture and Cooperationthrough Directorate of PlantProtection, Quarantine and Storage.Considering the ill effects posed bychemical pesticides, Government ofIndia has adopted Integrated PestManagement (IPM) as the cardinalprinciple and main plank of plantprotection strategy in the country. IPMis an eco-sensitive approach whichrelies on an array of pestmanagement strategies. Unlikeemphasizing on a single pest controlmethod, it is a multi pronged strategyutilizing the available alternativemethods for pest control like cultural,mechanical, biological and use of bio-pesticides. The whole strategyrevolves around the concept ofmaintaining the pest under economicthreshold levels - the level of pestattack where the estimated benefitsof treatment cover the cost of thattreatment. If the level of attack is belowthe threshold, the cost of treatmentwould exceed the benefits and thefarmer would make a loss by applyingthe treatment.In India, IPM related activities arebeing implemented through 26Central Integrated Pest ManagementCenters (CIPMCs) located in 23States and Union Territories. Themajor activities under IPM approachinclude undertaking sample rovingsurveys for monitoring pest/diseasesituation on major crops, productionand release of Bio-control agents andconducting Farmers’ Field Schools(FFSs). As this is a strategy thatinvolves constant monitoring at the

field level, the programme needs amarked presence at the grass rootlevel which is accomplished by thefield stations. The pest situationreports received from field stationsand States are compiled and,comprehensive weekly and monthlyreports are circulated to theconcerned officers and scientists ofState Departments of Agriculture/StateAgricultural Universities and ICARInstitutes so as to help them takeappropriate remedial measures. Bio- control agents, though are notthe only method under IPM, they areconsidered a very important part ofIPM. To enhance the production of bio-control agents/bio-pesticides,Government of India earmarked Rs1500 lakh as grants-in-aid during theEighth and Ninth Plans forestablishment of 29 State Bio-controlLaboratories of which an amount ofRs 1372 lakh has been released toStates. During the Tenth Plan, anamount of Rs 470 lakh has also beenapproved of which Rs 405 lakh hasalready been released so far for thesaid purpose. With the adoption ofIPM approach, consumption ofpesticides has come down from72,133 MT (tech. grade) during 1991-92 to 40,672 MT (tech. grade) during2004-05 and there is consistentincrease in the use of bio-pesticideswhich are environmentally safe.For any policy or plan to getmaterialized, an active participationof the stake holders is necessary.Even before that there must beenough awareness built among thefarmers. For this mission, Farmers’Field Schools (FFSs) have beenlaunched including State extension

functionaries and farmers. Theseschools conduct demo-cum-trainingprogramme. These FFSs trainingprogrammes also involve womenfarmers and NGOs to ensure greaterpublic participation in the IPMProgramme. Further, various trainingprogrammes are also conductedacross the country to train Central andState Government officials.

Biopesticides is still a mirageRachel Carson’s book, ‘Silent Spring’in a way exposed the darker side ofthe chemical pesticides and pavedthe way for a new environmentalthought that promoted eco friendlyproducts. In the quest to find morereliable products, even liveorganisms have been experimentedwith to achieve the intended results.The indiscriminate use of chemicalformulations- such as insecticidesand fungicides has left an indeliblescar on the environment. Many casesof suspected ill effects of insecticideshave been surfacing from variousparts of India. Though on paper, IPMis the main plank of plant protectionpolicy in India, it is seldom taken inthat sense by farmers. They resort toindiscriminate use of pesticidesresulting in many unwanted effects-the foremost being the presence ofpesticide residue in the farm produce.Also, they have a share in pollutingthe water bodies with chemicalswhich in fact find a way back in to thehuman system. They have alsocorrupted the soil with loads ofchemicals. Their excessiveinteraction with the environment hasbereaved it of many useful organismswhich could have otherwise beenhelpful in bringing down the pest/pathogen population to a controllablelevel. In many instances, this has ledto the resurgence of secondary pests.A classic case is the Brown PlantHopper infestation in rice. A keystrategy in IPM is to avoid pestresurgence. Another unintendedeffect is the development ofresistance in the pest/pathogenpopulation to the applied pesticides.Biological control has emerged asan alternative choice to battle the sideeffects of the chemical intensiveapproach. This method basically

Source: www.indiaagristat.com


comprise of live sources for themanagement of plant problems.These living entities are diverseranging from microorganisms toplants. Microorganisms such asBacillus thuringiensis have alreadyestablished their efficacy incontrolling many pests. Similarly,other established micro biocontrolagents include Nuclear polyhedrosisviruses, granulosis viruses, fungisuch as Beauveria bassiana,Metarhizium anisoplae, Trichoderma,etc. and bacterial agents such asBacillus sp., Pseudomonasfluorescens, Agrobacteriumradiobacter etc. Apart from liveorganisms, some plants and theextracts made out of them are alsoused in controlling many pests. Themost prominent ones are neem,turmeric, garlic etc., which in one formor the other helps in bringing downthe population of the pest.The effect of bio control agents thoughproven has not been able to make inroads in to the actual agricultural fieldon a wide scale. But anotherinnovation has taken hold of theIndian territory by a storm- the Btcotton. Built on the principle ofbiopesticide, this variety of cotton hasbeen massively adopted by the Indiancotton farmers. In India, Bt cotton iswidely used and the acreage stoodat 6.20 mn ha for 2007, a growth of63% over the previous year. Themarket for Bt products is expandingincredibly. This has not beenreplicated in the case of traditionalbiopesticides.

Biopesticides have found immenseutility in organic farming catering toniche market as there is no other wayof managing pest problems. “Mostcritical aspect in organic farming isthe protection of crops from insects,pests and other diseases due toviruses, bacteria, fungi, etc. Toaccomplish this, a multi prongapproach including the use of biopesticides, bio fertilizers, herbal andplant based preparations,pheromones, light traps, animal dungand urine based products along withthe use of resistant crops throughplanned breeding by utilizingbiotechnological tools should betried and standardized for differentcrops in various geographical areasof the country,” says Prof. M. P. Yadav,Ex- Vice Chancellor, SBVPUAT,Meerut.Though bio pesticides have beentouted as a viable alternative to thechemical means, many doubt theefficacy of bio entities in managingpest problems. The success of biocontrol agents has been mainlylimited to the labs and in many casesthey have failed to replicate the resultin fields. At present, only 8biopesticides are registered in India.Their development is still at nascentstage, and their action is mostlypreventive in nature. They havecomparatively poor shelf life. Somespurious products make their way into the market in the guise of biopesticides and according to recentreport from APEDA, traces ofpesticides namely, Profenophos, and

Abamectin have been detected ingrapes formerly believed to havesprayed with biopesticides. Manybelieve in this era of shrinkingproductivity and cultivable land area,this approach can hardly take usanywhere. “We need to bear in mindthat a country like India which is stillstruggling for enhancing at a fast rateits agricultural production, bio-pesticides do not offer a plausiblealternative / substitute to syntheticchemical pesticides. At the most, Isee a scope for bio-pesticides assupplement crop protectants, and thattoo for very limited crops and area,”asserts M. K. Dhanuka, ManagingDirector, Dhanuka Agritech Limited,New Delhi.

Chemical pesticides/fungicides arestill Indian farmers favouriteEven though a lot are being said anddone against the frivolous use ofpesticides, they are the fastest choicethat farmers make in a given situation.The reasons being – immediateaction, obvious results, easy use andmost of all it comes in a cheaperpackage. Their dominance in Indianagriculture has never beenchallenged. Even the large scaleadoption of Bt cotton which issupposed to bring down the moneyspent on pesticides, has notshattered the hopes of pesticideindustry. “I don’t foresee any threatfrom biotechnology and GM crops. Itis only a recent phenomena thatintroduction of GM crops like Bt.transgenic in cotton, and may be ofother crops become a reality. The totalarea planted in the country under Bt.cotton has gone up from 6.2% in2004-05 to 39% in 2006-07(Economic Times, 2007). This maylead to initial reduction in pesticidesuse on transgenic crops. Bt. cottonhas appropriate genes introduced forcontrol of Helicoverpa andSpodoptera, and farmers are usingpesticides to control other insectpests. Under such a scenario, in afew years, the GM crops may developresistance problem to one or twotarget insect pests, while theresurgence of other minor insectpests may also occur, for whichpesticides like imidacloprid ,


acetamiprid or thiametoxan will berequired . The farmers have controlledsuccessfully Lepidoptera insects butare now facing increased infestationof sucking insect pests’ namely Mealybug, Whitefly, Jassids, Thrips, etc.The GM crops need to be fit-in anIntegrated Pest Management (IPM)system”, believes M. K. Dhanuka,Managing Director, Dhanuka AgritechLimited, New Delhi.Meanwhile, the clout of pesticides inraising India’s production is anundisputed fact. “There is wide scopeto enhance crop productivity througheffective suppression of pests,diseases and weeds. The classicalexample is of cotton. The cottonproduction has increased from 100kg lint per ha to now 560 kg lint per habetween 1950 to 2007. A criticalanalysis of the decadal growthrevealed that varietalimprovement and plantprotection helped increaseproductivity to 300 kg lint per hatill 1990. However, wheninsecticide resistance built up,the productivity remainedstagnant till 2002. The Bt cottonmeant for inbuilt bollwormresistance did the magic ofsaving the crop from bollwormsand increased the productivityby another 250 kg lint per ha. Areverse analysis clearlyindicates that the cotton hybrids havea potential to give average productivityof 600 kg lint per ha but in theabsence of any plant protection canyield only 250 kg lint. Thus indicatinga loss of 60% due to pests. Takeanother example of grapes, in theabsence of pest control one canloose grape production by 90% dueto downy mildew, powdery mildew,anthracnose, mealy bugs, Botrytis rotetc. Therefore, significance ofagrochemicals in increasingagricultural productivity cannot bedenied,” says Dr. C. D. Mayee,Chairman, ASRB.Consumption of pesticide on a perhectare basis in India is lower whencompared to other nations. It is lessthan 280g per ha as against awhopping 17.0 kg/ha in Taiwan, 11.0kg/ha in Japan or 2.5 kg/ha in Europe.But it may not be presumed that since

we are the lowest consumer ofchemicals in the world, we are shy inusing chemicals. The Indian farmershave been partial towards certaincrops by indulging them with morepesticides. For instance, cottonconsumed 43.5% of the totalpesticides use where as rice 21.8%and pulses 8.1 % . The percentageuse in chilies and plantation cropwas 5.7 and 5.0% respectively. Allthese six crops consumed 81% ofthe total pesticides use.The Indian pesticide industry with85,000 MT of production during FY07 is ranked second in Asia (behindChina) and twelfth globally. In valueterms, the size of the Indian pesticideindustry was estimated at Rs.74 bnfor 2007, including exports of Rs.29

bn. In India, the industry is veryfragmented with about 30-40 largemanufacturers and about 400formulators.Even among the pesticides,insecticides are the fast movingcategory which accounts for 64% ofthe total pesticide consumption inFY07. India due to its inherentstrength of low-cost manufacturingand qualified low-cost manpower isa net exporter of pesticides tocountries such as USA and someEuropean & African countries. Exportsformed 39% of total industry turnoverin FY07 and have grown at aCompounded Annual Growth Rate(CAGR) of 18% from FY 03 to FY 07.Prior to 2005, i.e. in the processpatent regime, Indian companiesfocused on applied research andconcentrated on marketing genericand off-patent products. Due to this,

the R&D expense by Indiancompanies was lower atapproximately 1% of turnover. Globalcompanies focused on high-endspecialty products and dominatedthe market for patented newmolecules. However, with the onsetof the product patent regime in India,the Indian companies will need toincrease R&D expenses to meetcompetition from MNCs. Alternatively,Indian companies can becompetitive in the area of ContractResearch and ManufacturingServices (CRAMS).With the advent of the Integrated PestManagement (IPM) technique, theuse of biopesticides and GeneticallyModified (GM) seeds has increased.GM technology has been mainly used

in commercial crops likecotton, maize, soyabeanand canola. Cotton hasbeen the biggestconsumer of pesticides inIndia. With the advent of Btcotton, the pesticideconsumption for that cropinitially declined. In India,Bt cotton is widely usedand the acreage stood at6.20 mn ha for 2007, agrowth of 63% over theprevious year.Pesticide industry hasbeen under attack from

different quarters, although they haveplayed a big role in agricultureproduction. Many pro environmentalgroups have launched rhetoricagainst pesticides as they believethat the pesticides are culpable inpolluting the natural resources. Theadvent of biopesticides andparticularly GM crops will shake themonopolistic regime of pesticides.The consumption of chemicalpesticides have been found to bereduced although the per hectareconsumption has increased from154grams per hectare in 1960 to 280gram per hectare in 2007. Theindustry is also troubled by instancesof spurious chemicals which canfurther tarnish their reputation. Thereis still no effective mechanism tocheck the flow of such dubioussubstances. Also, in an effort tosalvage the crop from pest and


diseases, sometimes farmers mayindulge in indiscriminate use ofchemicals. So the pesticide industry,having understood this fact is nowadvocating the judicious use ofchemicals. Now their marketingstrategy has changed and has gonebeyond just popularizing their ownbrands. They have started to lendeven technical assistance to help thefarmers. For instance, CrystalPhosphates, part of Rs 500-croreCrystal group, and among thecountry’s top five agrochemicalcompanies, is set to adopt around200 fields in the Punjab agriculturebelt. According to NK Agarwal,Chairman, Crystal Group, “Crystaland farmers work on onecommon mission, that is, toincrease productivity. Ourefforts will help farmersincrease the yield and thuskeep them motivated abouttheir main occupationagriculture.” Crystal willspend about Rs.1.5 croreson this project and hasdeputed a team of 89technicians and specialistson this project. “Ourspecialized team will visitkey agriculture belts inPunjab and advise thefarmers on measures to betaken to maximize the yield. Properuse of agrochemicals and inputssuggested by our expert team canfetch a farmer an additional 10% yieldfrom his field,” added Agarwal.

IPM strategies have a long way togo from paper to prairiesIPM is a pro environmental approachand advocates the use of pesticidesas only a last resort. Though a lot ofpolicies and amounts are earmarkedfor this way of crop management, verylittle actually happens at the farmers’level. Majority of the farmingcommunity are still comfortable withusing pesticides as the only resort.Most of them are uninformed. Also,these strategies take time to showresults, so are not competent enoughto reproduce the spectacular effectsshown by pesticides. Moreover, theIndian farming situation is subjectedto vagaries of nature and hence the

effects of the likes of biopesticideswhich vary with temperature will notbe consistent through out the nation.IPM strategies have only beenworked out for a few crops- rice,sugarcane and cotton pests.Pesticides which are selectiveagainst a pest and not against thenatural enemies in the ecosystemare virtually unavailable. The wholeconcept of IPM revolves aroundeconomic threshold level of pestswhich hasn’t been worked out for allthe pests and combination of pestsfor different varieties and regions. Afew IPM demonstrations heldrandomly across the country in achosen few spots is not the way to

implement the programme if theauthorities are serious about theissue. So, adequate extensionactivities and facilities must be carriedout on a large scale.Most of the chemical pesticidemanu fac tu re rs / f i rms /dea le rsalthough carry out activities related todevelopment of the rural society, theyseldom try to create awarenessamong their customers regarding theill effects of pesticides. They alwaystry to make pesticide as the onlycomponent of crop protection and nottreat them as part of the programme.IPM training programmes and FFSin farmer’s field should be carried outon large scale throughout the countryto create awareness among farmingcommunity regarding adverse effectsof indiscriminate use of pesticidesand usefulness of IPM practices.The government should try tohighlight the adverse effects of

chemical pesticides and usefulnessof IPM through AIR and Doordarshanmore frequently to create awarenessamong the masses in general andfarmers in particular. Participation ofNGO’s, womens’ organizations,Panchayti Raj Institutions must beencouraged to have greater physicalimpact of IPM programme at grassroot level. Farmers should be givensubsidy on biopesticides, bioagents,biofertilizers and neem basedpesticides in order to reduce load ofchemical pesticides. Periodicalreviews of all IPM programmes beingcarried out by Centre/State/Privateagencies should be made by IPMauthority constituted for the purpose.

World as a whole hadbeen through severalcrises in the recent past– including food crisis. Ithas become imperativethat there is anaggravated necessity ofraising the foodproduction. It is anundisputable fact that10-30% of whateverproduced is lost due tothe ravages of pest anddiseases. Each morselof food saved in thisperiod is equivalent tofood produced. So it

becomes all the more necessary tosalvage these losses which by theway is preventable. Using pesticidesalone as a crop managementstrategy is not the solution. Theimpact of pesticides on thebiodiversity and the environmentshould not be overlooked, as the keyto our food security is the richbiodiversity. So a holistic approachlike IPM which combines the benefitsof prophylactic measures andtreatment regimen has to be resortedto. The most vociferous argument infavour of using chemical pesticidesis that it is the only means to raisethe current food production. Butresorting to a one point strategy likethis is a short sighted plan. We needa long term plan that will not only raiseour food production but also assurethere is enough scope for it in thefuture.



LivestockLivestockLivestockLivestockLivestock


ANIMAL HUSBANDRYRESEARCH AND POLICY PERSPECTIVE

Dr KM Bujarbaruah

It is a matter of pride that Indianeconomy is growing between 6 and8 per cent due to the contributionfrom industry, service, agricultureand other sectors. However, main-taining sustainability of agriculturalgrowth on the face of challenges itis facing today is a matter of con-cern. Within agriculture, the live-stock sub sector fortunately haspositioned itself very well so far asits production is concerned. Indiatoday is the home for 16.10, 56.50and 16.50 per cent respectively ofworld’s cattle, buffalo and goatpopulation. In sheep and poultry,India is 5th in the world, while theposition with regard to pig is 17th.In production front, our milk produc-tion has been growing at a rate of3.3 million tones per annum since2000-2001 with the present produc-tion of 101 million tonne, maintain-ing thereby a steady growth ofaround 3.72 per cent. With 7.94 %growth in poultry meat and 2.22%in non-poultry sector, an overallgrowth rate of 5.08 per cent hasbeen recorded in meat sub-sectorbesides a phenomenal 27 timesincrease in egg production todaysince 1950-51 when we producedonly 1.8 billion eggs. Per capitaavailability of milk and egg has alsoincreased from 220 g and 36 num-bers in 2000-2001 to 245 g and 46numbers in 2006-2007. The shareof export of livestock products hasalso increased from 3.3% to 6.9%in the period between 1981 – 1985and 1999 – 2004 besides increas-ing the contribution of livestocksector to agriculture from 19.8% to25% in the same period. This isalso the sector, the strength ofwhich has been amply recognizedtoday in so far as providing eco-nomic and social security to 52 percent of India’s population engagedin farm sector is concerned. Allthese developments have been pos-sible due to timely generation and

provisioning of needed technolo-gies-be it in health or productionaspects, ranging from the develop-ment of advanced disease diagnos-tics/vaccine production capabilitiesto improved strains and feedingpackages.

However, it is again a matter ofconcern that in spite of the countryshowing its potential to become aneconomic power in the emergingglobal environment, the country isthe home of around 200 millionpeople living below poverty line, 80million protein-energy malnour-ished children and a sizeablewomen population suffering fromanemia. In order to improve thecondition of this section of society,the government has come up withmany innovative ideas including thelatest announcement ear markingRs. 25,000 crores for agriculturesector development as it is thissector and within it the livestocksub-sector that can address theissue of poverty reduction, protein-energy balancing and providing nu-tritional security. All out efforts arerequired to boost up livestock subsector where the 70 million popu-lation is directly involved to producequality food for 70 % or 882 millionconsumers. As around 80% of live-stock in India is owned by smalland marginal farmers, which is alsothe livelihood option for 50% peoplebelow poverty line besides being theincome source for around 30-50 percent of the household, the very ba-sic issue of poverty alleviationagenda of the government could bemeaningfully addressed throughlivestock centric growth and devel-opment agenda.

From the time of one acre of land+ one pair of bullock + one cow thatdefined a farm family, both cropand livestock sector has been grow-ing steadily with needed shifts infarming pattern and procedure. Nowa stage has come to ensure a

growth rate of +5 per cent in cattleand buffalo, + 10 per cent in meatand poultry sector so as not onlyto provide the estimated animalproduct requirement but also to re-tain and encourage unemployedyouth in animal husbandry sector.For this, technological package andpolicy frame for different producergroups viz., zero input productionsystem (ZIP), medium input produc-tion system (MIP) and high inputproduction system (HIP) areneeded to meet the demand andsupply side requirements.

Department of Animal Hus-bandry, Dairying & Fisheries, Min-istry of Agriculture, Government ofIndia in their vision document cal-culated the need of 20 g of proteinper person per day in addition toprotein sources from cereal andother sources. Out of this require-ment, 50% i.e., 10 g is targetedfrom milk, 20% i.e., 4 g from eachof meat and fish and 10% i.e., 2 gfrom eggs. For this to achieve, milkproduction (@ 250 ml per day fornon-vegetarian and @ 500ml for veg-etarian population) has to go up toaround 160 million ton from thepresent level of 100 million ton by2020. Similarly, the requirement ofmeat and eggs are estimated to beto the tune of 10.58 million tons and80 billion (@ 90 eggs per person


i.e., half the WHO recommendation)respectively. In other words, milk,meat and egg production has toincrease by 60, 61.44 and 56.25percent by 2020.

There is an indication that rapidurbanization, higher per capita in-come, increase in human popula-tion have fuelled the demand for live-stock and poultry products whichis indicated by the increase inhousehold food expenditure from21% to 25% in urban and 16.1% to21% in rural households within theperiod from 1983 to 2004-05. Inemployment front, this sector em-ploys 11.4 million people in primarystatus and another 11 million insecondary sector related to it andmost of this population belongs tosmall, marginal and landless cat-egory who holds around 71% of ourcattle, 63% of its buffaloes, 72% ofsmall ruminants and 74% of poul-try. The contribution of this sectorto agricultural economy has alsobeen impressive even during theGreen Revolution period when ma-jor focus was on crop sub-sector.Dairy sector has remained themaximum contributor with 62-68%of total livestock economy.

A revolution in livestock sectorparticularly in the developing coun-tries is the need of the hour in thenew millennium as the productionof milk in these countries need tobe increased from 164 million met-ric tonnes in 1993 to 401 millionmetric tonnes in 2020 to facilitateper capita consumption increasefrom 39 to 63 kg. Similarly, the to-tal meat (beef, pork, poultry meat)production needs to go up from 170mmt in 1993 to 353 mmt in 2020.The growth in developed countrieshowever is expected to be negli-gible as evident from a projectedannual growth rate of 0.4% in pro-duction and 0.2% in consumption.Basic issues for a livestock revolu-tion in India among developingcountries centres around followingprojections :• Total population of India will

exceed 1.3 billion by 2020- Pro-visioning of food of animal ori-gin to them

• The population over 60 years ofage will double from 60 to 120million people- provisioning ofvalue added animal products tothem

• Technology support to 60% ofsmall holder farmers for qualityproduct preparation

• Facilitating shift from populationdriven to technology led growthand production particularly inthe context of climate changeand deficiency in feed and fod-der

India ranks next only to NewZealand in cost of production ofmilk. The low cost of production isin our favour to compete in the in-ternational market. The issue ofsafety and quality of animal prod-ucts adhering to SPS measures willhave to be addressed on priority ifIndia is to capitalize on livestockproducts centric trade globally.Good management and goodmanufacturing practices will haveto be integrated in the productionsystem to improve quality.

In order to be competitive, re-search output shall have to be pro-grammed in such a way that it findsits inclusion in the developmentstrategies. It is observed that inIndia, the research and develop-mental agencies work almost intheir area domains in isolation be-cause of which the ultimate clientbase is not benefited. For a tech-nology led growth, a synergy be-tween the two is a must. While

the already developed technologiesneed to be adopted and taken bythe development agencies, the re-search institutions shall have to fo-cus on the following for generationof technologies to suit the upcom-ing challenges and situations inAnimal Husbandry sector.

Researchable issueso Molecular Genetic Signatures

for indigenous AnGR and con-servation of threatened breeds

o Development of quality geneticresource for optimum produc-tion targeting

o Markers aided selection pro-gram

o Assessment of embryoniclosses and improvement in re-productive efficiency

o Buffalo, Goat and Poultrygenomics

o Stem cell research for rapidmultiplication of elitegermplasm and novel veterinaryapplications

o Improvement and utilization oflow quality roughages throughin vivo and in vitro biotech ma-nipulations

o Reduced green house gasesfrom livestock and facilitatingtheir adaptation to impendingclimate change.

o Clinical Nutritiono Continued efforts to develop

diagnostics and immuno pro-phylactics for various diseasesusing biotech & nanotech tools


o Pharmaco-genomics & dynam-ics for new generation drug for-mulations

o Targeting disease resistancegenes in indigenous livestockand poultry

o Transgenic chicken and pigsfor pharmaceutical production

o Animal waste disposal andresidue analysis of environmen-tal and industrial pollutants

o Development and improvementof processing technologies forvalue addition ; shelf life en-hancement, quality assuranceand packaging of livestock prod-ucts

o Designer / dietetic livestockproducts to tap consumer pref-erence

o Production of environmentfriendly animal with increasedproductivity

o Encashing neutracutical quali-ties in indigenous livestock

o Livestock for alternate sourceof energy

o Organic livestock and poultryproduction

o In utero selection of elitegermplasm

o Development of seminalplasma protein based kits toidentify elite animals

o Ration balancing for High valueanimal production

o Rumen biotechnology for im-proving the bioavailability of nu-

trientso Allele mining for heat tolerant

genesIn addition to these issues, a

strong Market intelligence reportgathering group on the demand sideof processed products and strength-ening accordingly the supply sidetechnology innovation in order tocompete with the high value prod-uct trade needs to be put in place.Human Resource Development totake on the cutting edge researchin frontier technologies also needsto be given adequate attention byconstantly reviewing the coursecurriculum including skill orientedtraining to the faculty members.

Policy IssuesIt is important that some policy

issues concerning Animal Hus-bandry Sector Development in thecountry are re-looked at. The poorattention to this sector both interms of financial resources andinput provisioning is basically dueto the fact that decision makingpersons from Animal HusbandrySector is not available; for example,research decisions are taken by anagriculturalist in the form of DG,ICAR and development decisionsare taken by bureaucrats in theform of Secretary, Animal Hus-bandry. This mismatch shall haveto be addressed if the Govt. is in-terested to help the poor livestock

grower and the livestock per se.However, some other policy issuesof concern are indicated.� Gearing up of research agenda

and strengthening of institu-tions

� Capacity building in organizedprocessing sectors to increasethe volume for post harvest pro-cessing and value addition

� Policy frame on public-privatepartnership particularly in theareas of service delivery throughquality inputs and technologyvalidation and dissemination

� Revisiting post graduate coursecurricula so as to accommo-date the indicated areas to pro-duce drivers for bringing in thedesired shift to livestock pro-duction

� A shift to peri-urban productionsystem so as to enforce bio-security, safety and quality foodproduction linking the smallholders in the production to con-sumption chain

� Arranging certification bodiesfor semen, embryos, vaccine,germplasm, feed and food ofanimal origin

� Generation of a data base onproduction based identificationof quality animals across thezones as well as for quantify-ing livestock products to be earmarked for high value produc-tion separately for domesticand international market

� Setting up of a Livestock andpoultry development board withrequired autonomy to oversee,monitor and fund quality re-search and extensionprogramme in this sector

Summing UpWith 485 million livestock and

496 million poultry which is almostequivalent to the human population,India has the potential to becomea big global player in the produc-tion and trade of livestock productswithout affecting the interest of thevast majority of small holder pro-ducers.

Vice Chancelor, Assam AgricultureUniversity, Jorhat


Livestock Towards Livelihood of

Small Farmers in IndiaIn India, of the 72% of the ruralpopulation, 57% of the households((over 100 million)) keep livestock astheir only or important source oflivelihood. Many of these (32%) small-scale livestock keepers have noaccess to land and are dependent onlivestock as the only source oflivelihood and the number of rurallandless households is likely toincrease due to further subdivision ofland holdings. Livestock are thusbecoming an increasingly importantsource of income for smallholdersand the landless. Women, inparticular, depend on livestock, thatis 76% of total workers engaged inlivestock are women compared with37% in cropping agriculture.According to the Central StatisticalOrganization (CSO), the value ofoutput from the livestock and fisheriessector was around $62 billion duringthe Indian Financial Year 2006/07.The livestock and fisheries sectorstogether contributed 31.7% to India’sagriculture production value (value ofoutput) and represent 5.26% of totalGDP. In absolute terms, theircontribution increased from 256billion Indian Rupees (INR) in 1970/71 to INR 934 billion in 2002/03 (at1993–94 prices) at an annual rate of4.3%, higher than the growth in theagricultural sector as a whole (2.8%).While with industrialization, thecontribution of agriculture to GDP isdecreasing it is important to note that

the contribution of the livestocksector to agricultural output isincreasing: presently livestockcontributes over 25% to theagricultural sector output, up from16% in 1970/71.

Changing Markets/DemandsAs in most emerging economies, thedemand for livestock produce in Indiais increasing due to economic growthand urbanization. In the past twodecades, for example, milkconsumption has increased by 30%and total consumption of animal foodproducts almost doubled between1983 and 1999/2000. Importantly,these increases are seen across abroad range of income groups andin rural as well as urban areas. Theincreasingly integrated globalmarkets under WTO are also creatingopportunities for exporting animalfood products.The phenomenal growth in the dairyand poultry industries is wellrecognized, but the increasingdemand for livestock products doesnot stop at milk, poultry meat andeggs. Demand for mutton and porkis growing too. For example, theincreased demand for pork haspushed prices up by about 20% inreal terms in the NE States in the past5-6 years – good news for the manysmallholders who keep a few pigs intheir backyards. The opportunities

for commercial production of goatmeat are good in many areas of Indiabut so far little attention has been paidto commercialization of smallruminant production.

Key Challenges Affecting SmallScale Farmers Engaged in LivestockSectorDespite its significant contribution asa source of livelihood, nutrition andits contribution to the nationaleconomy in India, the livestock sectorhas not received adequate attentionand investment, especially whencompared to agriculture sector. Thefollowing section highlights some keypolicy and capacity developmentneeds of the sector.

PolicyIndia has no overall livestock policy,although a draft policy has beendiscussed for many years and oneor two states developing their ownlivestock policy. Development of thelivestock sector has been largely

Farm Agricultural employment Share of livestock in Share of women in livestockcategory in rural employment (%) agricultural employment (%) employment (percent)

1993-94 2004-05 1993-94 2004-05 1993-94 2004-05Landless 62.8 62.5 5.5 2.3 68.0 97.2Marginal 73.0 65.2 7.1 9.2 69.4 73.4Small 89.4 88.2 6.1 7.4 72.1 82.1Medium 92.2 90.8 6.8 7.8 72.8 83.1Large 93.1 91.4 7.7 8.6 76.7 82.0All 78.4 72.7 6.8 8.8 70.5 76.6

Table 1: Employment in livestock sector by farm category

Source: NSSO [National Sample Survey Organization] 2006

Dr Purvi MehtaBhatt

Dr Ian Wright


focused on diary developmentbecause of its role in nutrition and itsimportance to small farmers. Butthere has been limited recognition ofthe potential role of other livestocksectors in rural development andpoverty reduction. The livestock sectorcould be assisted generally and bemore conducive to small scalefarmers, if policies considered thefollowing factors-§ The first requirement is for stableand reliable market systems forlivestock products. As the majority oflivestock farmers are small-scale andresource poor, marketing of theirproduce is one of the biggestchallenges. These farmers needsupport for better access to markets,storage and transfer of their produce.Policies to encourage disseminationof market information and to helpfarmers to come together for collectiveactions would be useful. While dairycooperatives, in some states, havebeen very successfully implemented,this has not been universal and otherforms of market organization need tobe explored. These need to gobeyond the dairy and incorporateother livestock products. The policiesmust also recognize that mostlivestock products are traded throughinformal markets and provision ofsupport to these markets and agentscan improve their effectiveness.§ Although market demand is thekey driver, input supplies and servicesneed to be provided and this is still akey bottleneck in the Indian livestock

sector. In comparison to the cropsector, livestock extension servicesand inputs supply chains aregenerally very weak. A large part ofthe increase in output from livestockin the past has come from increasein animal numbers. This is notsustainable in the long run and thefocus now needs to shift to increasingproductivity per animal, which willrequire better feeding, breeding andveterinary care. A recent review oflivestock services in India by ILRI andpartners has pointed to the need ofencouraging private sector andpublic-private partnerships inlivestock services. In addition tofeeding, breeding and veterinaryservices, knowledge of animalmanagement practices andbusiness development servicesincluding credit and risk-mitigatingmechanisms in the form of livestockinsurance need to be promoted.While government has a role infacilitating these services, it need notbe the front line provider but it mustprovide an enabling environmentwithin which others service providerscan operate effectively.§ Livestock, like other agriculturalsectors, is a state subject andtherefore each state has its own setof rules and regulations. Thecontribution of livestock to livelihoodsupport varies considerably betweenregions and types of farmers andcommunities. A ‘one size fits all’ policywill not work and tailor-made policiesin each state for different agro climatic

regions and different types of livestockproducers are needed.§ Some important elements of thelivestock sector, for example backyardpoultry, remains to a large extentunorganized. This kind of livelihoodactivity is particularly for poor anddisadvantaged communities (90% ofback yard poultry holders in Orissa,for example, are landless farmhouseholds belonging to scheduledcastes and scheduled tribes). Policyinterventions to organize these kindsof sectors would directly benefitunderprivileged farmers and helpthem tap the growing demand forlivestock products.§ Improvements in value additionare necessary to sustain expandingmarkets, strengthen exports andcounteract the threat of cheap imports.This will require public investment ininfrastructure and in enhancing skillsto ensure better returns forproducers. Encouragement to privatesector investment is also needed.§ Policy interventions are neededto improve the credit flow to livestocksector and strengthen insurancesupport, especially to small livestockproducers as to enable them todiversify into livestock production.§ Appropriate policy and incentivestructures are need to attract bothpublic and private sector investmentin the livestock sector. Identifying andfacilitating clear roles for the publicand private sectors and establishingstrategic public-private partnershipswill be crucial for tackling the presentunderinvestment in livestock sector.The Planning Commission hasdesignated a financial assistanceoutlay of $2.04 billion for theDepartment of Animal Husbandry,Dairying and Fisheries (DADF),Ministry of Agriculture under theeleventh five-year plan (2007-2012).This aims at achieving a cumulative


growth target of 5% for the dairysector and 10% each for the meatand poultry sectors. While this is awelcome step, there are evolvingpolicy needs in the context ofchanging demand, changing marketscenarios, globalization, improvedtechnologies and improvedunderstanding, through research ofvarious environmental and climatechange issues. With an enablingpolicy environment there isconsiderable scope to extend thebenefits of this sector to small scalefarmers, who are the core livestockproducers of the country.

Capacity gapsWith 485 million livestock and 489million poultry, India ranks first inglobal livestock population. Howeverthe average productivity per animalis low, due to a significant gapbetween potential and actual yields.There are some significant capacitygaps in terms of research,infrastructure and access totechnologies.

Table 2. Productivity per animalCommodity Productivity

(kg per animal)MilkCows 1249Indigenous 719Cross-bred 2350Buffalo 1570

MeatBuffalo 138Beef 103Mutton and lamb 12Goats 10Pigs 35

Eggs (no. per bird)Indigenous 112Improved 258Sources: Basic Animal HusbandryStatistics and FAOSTAT

Research/ Technology GenerationThe emphasis in animal healthresearch has largely been focusedon curative treatments with preventivemeasures having been largelyneglected. This area needsinvestments in terms of technology

development and programmeimplementation. Research on cost-effective delivery of programs needsto be strengthened by bringingtogether epidemiologists andeconomists – animal healtheconomics research is almost non-existent.Achieving higher levels of productionrequires more than the feeding of cropresidues. Smart ways of providingcost-effective supplements to locallyavailable feeds need to be developedin which better nutrition is provided toselected animals at key times in theproduction cycle.Improved genetics will be important.Most efforts have been focused ondeveloping cross-breeding schemesand there have been some notablesuccesses in some parts of India.But AI services still reach only about10% of the dairy population. Whilecrossbreeding can lift milk yields,there is also a need to exploreprogrammes for improving existingbreeds which often show adaptivetraits suited to local conditions.Changes in the way livestockproducts are procured, processedand retailed will place new demandson product quality. Production andmarketing systems suitable forsmallholder systems will need to bedeveloped, if small scale producersare not to be squeezed out of themarket.Livestock farmers, especiallywomen, have very rich, untappedindigenous knowledge on livestockproduction, including healthremedies. This knowledge needs tobe studied, recorded andstrengthened by adding scientificknowledge to it.The key to the development of suc-cessful programs and projects forlivestock research is to develop theappropriate partnerships involvingthose responsible for the implemen-tation of livestock development or de-velopment of policies in the researchprocess and to recognize that re-search is only one component in theprocess of innovation.

InfrastructureLivestock output worth Rs.432 billion

(at 2002–03 prices) is lost annually,due to lack of infrastructure. This canbe reduced through appropriateinvestment in transportation, storagefacilities, processing, packing etc.requiring the public and privatesectors to work together.

Technology and ServiceDisseminationBy encouraging the private sector,government can use scarceresources to target more marginalareas and communities which areless attractive to private companies.Government can provide funding,while NGO’s or even the privatesector provides the services ininnovative public-privatepartnerships. A key component ofsuccessful extension is the provisionof advice and services in anintegrated manner - completepackages that deliver information onbreeding, feeding and health coupledwith business support services in anintegrated way. This needs staff witha comprehensive understanding oflivestock and its role in farmingsystems and this in turn hasimplications for the way in whichprofessionals are educated andtrained.

ConclusionFor the sector to achieve its truepotential there is a need to strengthenthe policy framework, developinnovative market models, invest ininfrastructure and capacitydevelopment including re-vitalizinginput supplies and services andneeds-based research programs atnational and regional levels. This willonly be achieved through thecombined efforts of all stakeholdersin the livestock sector. With such aframework in place, livestock canprovide an important pathway out ofpoverty for millions of people in Indiawho depend on livestock for theirlivelihoods and will support the ideaof ‘Sarvodaya’ (rise of all).

International Livestock ResearchInstitute


Reinventing Indian Traditional Milk Production

system For Healthy Human, Animals & Environment

Dr MJ Saxena1 and Dr Anup Kalra2

In India, our ancestors have beenpractising sustainable agriculturemaintaining a healthy balance ofcrop, livestock production & soilhealth. The farmland is tilled usingthe human and animal power foroptimum agricultural crop production.The grains harvested provided foodsecurity and the leftover crop residuesserved as animal feed. In turn, theanimals returned the favor to the soilin the form of dung, which is a naturalway to enrich soils with vital nutrients.The livestock produce/milk producedwas most nutritious next only tomother's milk. Moreover, this activityprovided a source for additionalincome to the rural household.As the demand for milk increased,the traditional knowledge of milkproduction met with severaldepartures. Though this resulted inincrease in milk yield, it ran into majorproblems of pesticide & antibioticresidue. The West recognized theseproblems & adopted newertechniques or organic milkproduction.During 1960 or 70's, Indians werealready practising production of milkwhich the Western world reinvented& named as organically producedmilk. This may be a new concept forthe Western world. But for us it is our

age old traditional knowledgeof livestock production. As faras organic or quality milkproduction in our country isconcerned, our ancestors hadpracticed the same for thepast several years. Maybe wedid not name it as organicmilk. The organic milk isdefinitely safe, tastier,healthier & safer.

Milk Production in IndiaWe trumpet that we are the largestmilk producer in the world. But thefact is that this highest milk productionfigure is a mere 3% of the total worldmilk production, and our cattle havethe lowest productivity in the world.The highest milk production in theworld is from the largest herdpopulation which is 30% of the world.We have 57% of world's buffaloesand 15% of world's cows. Theaverage milk production of Indiancattle is thus about 1/10 of the world'saverage milk production. Thedemand for milk in India is expectedto grow at the rate of 10% per year.The shortfall of milk in the Indianmarket is being made up by importof skimmed milk dry powder. Theworld milk prices are likely to shoothigh owing to the demand in the

market.

Organic Dairy FarmingThe books define organic farming asa modern, sustainable agriculturesystem which maintains the long-term fertility of the soil and uses lessof the earth's finite resources toproduce tasty and healthy food. It is abalanced system that ensures soil,plants and animals enjoy the bestconditions for development andgrowth.

Health Benefits of Organic MilkOrganic milk has all the nutritionalgoodness of non-organic milk but,due to the cows' more natural diet, italso has some additional healthbenefits.

" Omega-3- Fatty acidsOrganic milk is naturally higher incertain nutrients than non-organicmilk. One such nutrient is Omega-3-Fatty acids. Omega 3 fatty acids areessential for maintaining a healthyheart, supple and flexible joints,healthy growth and strong bones andteeth. This is due to the fact thatorganic cows are fed higher levels ofnatural red clover than non-organiccows. Further research shows thatorganic milk contains up to 71% moreOmega-3 than non-organic milk andhas a better ratio of Omega-3 toOmega-6 than non-organic milk.

" Vitamin E, Vitamin A andAntioxidantsResearch has also established thatorganic milk has higher levels of


vitamin E, vitamin A and antioxidants.Organically reared cows, which eathigh levels of fresh grass, cloverpasture and grass clover silage,produced milk which is on an average50% higher in Vitamin E (alphatocopherol), 75% higher in betacarotene (which our bodies convertto Vitamin A) and two to three timeshigher in the antioxidants- lutein andzeaxanthine than non-organic milk.

" Conjugated Linoleic acid (CLA)All milk contains conjugated linoleicacid (CLA), which is believed to boostimmune function and reduce thegrowth of tumors. CLA levels aregenerally higher in organic milk,possibly because organic cows eathigher levels of grass hay and silagerather than concentrates. In fact, meatand dairy products from grass-fedanimals can produce 300-500%more CLA than those of cattle fed theusual diet of 50% hay and silage, and50% grain.

" PesticidesOrganic dairy farms do not useartificial pesticides (insecticides,fungicides or herbicides) on pastureswhere cows graze. It has beenestimated that in the Western world,human bodies contain traces of atleast 300-500 potentially harmfulchemicals absorbed from our food.In the Indian context, this would bemuch higher. The use of increasedchemicals since the Second WorldWar, when farming became moreintensive led to increasedpercentage of chemicals in thehuman body.Some experts believe that childrenmay be particularly susceptible topesticide residues since they have ahigher intake of food per unit of bodyweight than adults, have immatureorgan systems and may have limitedability to detoxify these substances.

The rise in human fertility problemshas been linked to pesticides. Fiveout of the 12 most commonly foundpesticide residues are suspected tobe hormone disrupting chemicals

Requirements of Organic dairyFarm

" Transition periodThe transition period is for one year.Dairy animals must be transitioned(managed 100% organically) for oneyear. This is a one-time, whole herdconversion to organic. All animalsmust be managed organically fromthe date the transition starts.

" Land RequirementsIt is recommended that atleast 90%of the land be certifiable beforestarting the transition process. Landmust not have had any prohibitedsubstances, i.e. synthetic fertilizers,pesticides, herbicides, treatedseeds, sewage sludge, GMO seedsor inoculants, etc, applied for at least36 months (3 years) prior to theharvest of an organic crop. Cropsharvested from transitional fieldsmust be completely segregated fromorganic crops.

" Feed RequirementsDairy animals in transition must befed 100% organic feed for a full year.This may be from fields that qualifyfor certification that are included inthe Organic Farm Plan.All feed supplements, including

minerals and salt blocks must beapproved. Antibiotics, GMO-derivedproducts, animal by-products, urea,manure and synthetic preservativesare not permitted in any feedproducts. Mineral supplements mustnot contain prohibited ingredients(such as mineral oil and artificialflavors & colors). Use of treatedseeds must be discontinued.A Pasturing plan must be developed.All animals - six months and older -are required to be on pasture duringthe grazing season. Animals mustget a significant amount of their foragefrom pasture during the grazingseason.

Constraints of producing organicmilk

" FeedThe feed & fodder which is given tothe animals for feeding has highcontent of pesticides. In the givensituation, it has actually becomedifficult to think of feed which is freefrom pesticides. Ayurvet has beenworking on the Hydroponicstechnology for the past few years &has now successfully developed aHydroponics machine which canproduce fodder upto 500kg/day.Thisfodder is safe, nutritious & pesticidefree. The solution for pesticide freefodder, thus, is really the Hydroponicstechnology

" Recharging the soil humusWe had nearly 600 cows per 1000

Food Total CLA(mg/g fat)

Homogenized milk 5.50Butter 4.70Ice cream 3.60Fresh beef 4.30Veal 2.70Lamb 5.60


Indians at the time of independence.Today this has been reduced tomerely100 cows per 1000 Indians.In the past, milk sector recordedannual growth rate of 6%. However,the cow dung, which is devoid ofchemicals & synthetic fertilizers, canbe ploughed back as organicmanure, into the agricultural fields,which would result in higher cropproduction. Organic manurestrategies will complement theaccompanied organic horticultureand other agriculture produce. Thereare immense domestic and exportpossibilities in production of organicproducts.

" Animal HealthThe health of the animals is the keyto success and higher economicdevelopment. For centuries, thetraditional knowledge of Ayurveda hasbeen used successfully to improveanimal health & production. Some ofthe common problems whichAyurveda addresses are the areaspertaining to mastitis, retention ofplacenta, improving reproductiveefficiency, tympany, and indigestion.Ayurvet, a premier Indian Companyin herbal animal healthcare, with itsrich experience with Ayurvet andscientific & clinical validation of itsspecialties offers the best solutionsto these common problems & relatedissues of animal health.

" Extension workInitiatives will have to be taken toeducate the dairy farmers thatprevention is better than cure. Use ofnatural medicines & their benefitdemonstration in terms of animalhealth, fertility management, andmastitis control should be given toppriority. These farms will be the newincarnation of the old Extensionservices. Unlike present Extensionservices, these farms will beparticipating in a productive costcenter farming activity by making useof the best of scientifically trainedmanpower for their practicalfunctioning. The best of modern Vettechniques of ET, AI, Breeding, cattleNutrition and care strategies, specificto the particular geographic location

will have to be practiced.

Indian Heritage & World scenarioAccording to SAN, the SustainableAgriculture Network of USDA (UnitedStates Department of Agriculture) cowis the one important link in the chainof Atmospheric Carbon and Nitrogenbalance cycles. The top six inches ofsoil is said to contain four times morecarbon than all living plants, animalsand the atmosphere. This carbon islocked in the organic matter in thesoil. As the organic matter of the soilis depleted it becomes a source ofmore carbon dioxide in theatmosphere.The depletion of organic matter andthe accompanying release into theatmosphere of carbon dioxide is asignificant reason for global warmingthan yet perceived, with all theimportance being given to vehicularexhausts.As a strategy to economize on cost ofproduction of milk, New Zealandintroduced scientifically wellmanaged grazing systems for itscows. In Vedas, these grazing landswere called Charan and were not thesame as pastures or Gochar. Themilk from pasture fed cows turnedout to be much cheaper and becamemore available in the market. Theconsumers not only found this milkcheaper but also tastier.It was established by the scientiststhat only the milk and meat of thepasture fed cows contained highproportion of Omega3 and CLA(Conjugated linoleic Acid).These constituents in milk played therole of providing protection andimmunity from self degeneratinghuman diseases, such as Cancer,particularly breast cancer, Obesity,Cardiac Artery Diseases, Diabetes,Arteriosclerosis etc.This modern medicine researchfinding does not come as a surpriseto us Indians, who have traditionallyregarded a good healthy pasture fedcow's milk to be of immense nutritiveand medicinal importance. We calledit Amrit. Here we are not talking aboutthe synthetically reconstituted whitefluid which is being sold to the lessinformed Indian masses by the Dairy

Industry and commercially promotedas the best nutritive milk.

Opportunity for Human Health andRural ProsperityIn India, the production of milk hasbeen consigned to the unorganizedsector. The Dairy Industry that we talkof, is infact only a milk processingIndustry. Fresh initiatives are nowrequired to gradually introduce DairyFarming in India to enhance ourdomestic milk supply.Looking into the Internationalstandards, producing organic milkmay not be easy at this stage butatleast certain initiatives may have tobe taken to produce good quality milkfor human health. This will only bepossible when the animal health isensured through the right feed.Milk and cow can thus be utilized asthe fastest and most cost effectivemethods to bring social changethrough health, wealth and prosperityof the nation.Rig-Veda mantra says," Gavupavatavatam mahiyagyasyarapsuda , Ubha karna hiranyaya" ..RV8.72.12 where cows are well takencare of, the land remains highly fertileand productive. The people thereattain well being and prosperity towear gold ornaments in their years.

ConclusionThe production of organic milk in ourcountry cannot be looked in isolationbut should be in conjunction with soil,animal & human health. Initiativesshould, therefore, be taken to educatethe farmers & consumers about thebenefits. It is well understood that theentire process may take time and becostly but first step in this directionwill be a welcome step which willimprove farm profitability, ruralprosperity & overall health of thenation. Thus, it may be suggestive tofind out a common path & adoptintegrated approach of holisticdevelopment of man and society.

1Managing Director Ayurvet LimitedDelhi and 2CEO (AFB) Ayurvet

Limited, Delhi


Livestock and livelihood development

Dr VK Taneja

Importance of Indian agricultureand livestock transcend beyond itseconomic contribution as around 50%of total population depends onagriculture and allied activities forlivelihood and household nutritionalsecurity. Though the share ofagricultural sector in gross domesticproduct has declined over time, theproportion of workers engaged in ithas declined marginally from 70.5 %in 1983 to 65.6 % in 2004-05. On theother hand, the share of non-cropactivities (livestock, fishing,forestry, agricultural services,etc) during this periodwitnessed a downward trend.Their share declined from 11 %to 7.1%. Most of the decline inemployment in non-cropactivities is due to a fasterdecline in the employment inlivestock sector. Livestocksector engaged about 8.5 % oflabour force in 1983 whichdeclined to 6.4% in 2004-05.This does not include personsin sale, reprocessing andtransport of animal products atsecondary market level.Females provide bulk of thelabour force needed for variouslivestock production activities.During 1980s, 65 % of the labourrequirement in livestock sectorwas contributed by females, andthis increased to 71 % during1990s. Against this thecontribution of female labour force tocrop production remained unchangedat 37 % suggesting that livestockenterprise is women oriented andgrowth in livestock production wouldhelp improve gender equity.

Growth potential with livestocksector: Livestock production andproductivity has shown animprovement over the years.Livestock sector registered an overallgrowth rate of 3.6% during 1991/92-2005/06 (milk 3.9%, meat 3.2%, otherlivestock products 2.9%) against agrowth rate 1.8% for crop sector.Similarly, the share of value of outputfrom livestock to that of agriculture

went up from 24.5% to 27.6%.Sustained growth in per capitaincome, fast increasing urbanpopulation and increasing awarenessof nutrition-rich foods of animalorigin among both urban and ruralconsumers suggest that livestocksector is sure to emerge as engine ofgrowth of rural economy withpotential to achieve higher growthrates of 6% per annum. Further, thegrowth in livestock sector is povertyreducing. This is evident from the fact

r e l a t i o n s h i pbetween GDPdue tolivestock andpoverty isn e g a t i v et h e r e b ys u g g e s t i n gt h a ta u g m e n t i n gincome andemployment in livestock sectorthrough policy and technological

interventions would helpbringing down the incidenceof rural poverty. Thechallenge, today, is to furtherimprove the growth rates inlivestock sector and makesmall holder livestockproduction a profitable, selfsustaining and competitiveventure while keeping in viewthe concerns of environment,bio-diversity, quality and foodsafety, human and animalhealth and animal welfare.

Production system andanimal numbers: Althoughlivestock is distributed acrossfive major zones viz. hill andmountain, irrigated, rainfed,coastal and arid, majorconcentration of cattle,buffalo and goats is in rainfedand irrigated zones, sheep inrainfed zone and poultry inrainfed and coastal zones

Table 1: Distribution of livestock population acrossagro-climatic zones, 2003

Source: Livestock Census, 2003; Figures in parentheses indicate contribution from dry fodder


(Table-1). Rainfed and irrigatedzone account for largerproportion of livestock andhuman population and land area.Dry matter availability is highestin irrigated followed by rainfedzone. Between 55-77% of drymatter in animal diet consists ofdry roughages. Non availabilityof grains, cakes and green fodderin required quantity is a majorconstraint in livestockproduction.

Livestock numbers in generalhave shown declining trends forall the species across all the majorregions except sheep wheresubstantial increase in numberswas noted in rainfed and coastalzones. In arid zone, small ruminants,the predominant species, are loosingout to cattle and buffaloes. Thesetrends suggest adjustment of differentspecies and stabilization of livestocknumbers to available feed resources,production system and environment.Mixed crop livestock system is mostpredominant and practiced on 83% ofthe land while pasture based andindustrial system account for 4% and13% respectively. Food functions inanimals are becoming more importantthan draft animal power and manure;these trends suggest that semi-intensive/ industrial productionsystem would gain more importancein days to come.

Rural households and livestock:Land and livestock are considered tobe the major assets of ruralhouseholds for livelihood support in

of Government of India viz.NREGAetc. These trends clearly brings outthat land is an important determinantfor livestock production and size oflivestock holding.

Although, the number of marginalhouseholds has remained around 48%overtime, the share of livestockholdings has substantially increasedfor all type of livestock (Table-2).Marginal and small farm householdsthough are at subsistence level, thesecontribute a large part of milk, meat,wool and eggs. Around 70% of thetotal milk production comes frommarginal and small households insmall amounts as evident from the factthat only around 11 percent of themarginal and 16% of small householdsproduce more than 2000 liters of milkper annum. Medium and large farmersthough account for around 10% ofhouseholds; these have around 27%bovine and 21% ovines.

Livestock in general and dairyingin particular is a potential source ofincreasing income, providing self-employment and empowering ruralwomen. This has been demonstratedthrough various studies includingfield experiments. Income fromdairying as against crops in marginal(75.3% vs 24.7%) and small landholdings (54.10% vs 45.9%) in Punjabwas higher than that in medium/ largeland holdings (Table 3). In anotherstudy conducted by PunjabAgricultural University (2006), it wasfound that return over the variablecosts was Rs 67768/ ha /annum from

Source: NSS Report No. 493, Livestock Ownership across Operational Land HoldingClasses In India 2002-03, Ministry of Statistics and Program Implementation, GOI.

general and small and marginalhouseholds in particular. Although,the proportion of landless householdshas significantly increased from 22%in 1991-92 to 32% in 2002-03, the shareof livestock holdings among landlesshas declined significantly across allspecies of livestock (Table 2).Livestock production among landlesshouseholds largely depend oncommon property resources such asgrazing lands, water resources,forests, wastelands, fallow lands androadsides for feed and fodder. Thedecline in availability of theseresources has affected the landlesshouseholds to quit livestockproduction. The increase in numberof landless households could be dueto disintegration of marginalhouseholds and larger availability ofoff farm jobs under various schemes


crop-dairy farming as against Rs 30113from crop farming. In other words, afarmer can have 56% more income fromcrop-dairy farming. As a result ofhigher income per unit of input,medium to large herds of crossbredcattle and high yielding buffaloes havecome up in Punjab as an alternate towheat-rice system. This trend is likelyto continue and spread to other partsof the country and create moreemployment.

Constraints in livestockproduction: The major concerns withsmall producer are scale and efficiencyof production as market costs bothfor live animals and livestock productsare high being 20-30% of sale price inlarge ruminants and 15-40% in smallruminants. Providing small scaleproducers inputs, services, credit,market support and remunerative priceis a major challenge. The other majorproduction constraints were non-availability of quality animals, fodderseed, high cost of veterinary medicineand little value addition of livestockproduce and their marketing. Currentlyonly 15% of milk and 1% of meat inIndia is processed for value addition.This needs to be substantiallyincreased through technological,policy and financial interventions andsupport. Unfortunately, inspite ofhigher growth rate and potential toincrease income and employment, thepublic investment in animal husbandryand dairy development has been not

only low but declined from 15% in1991-93 to 5% in 2001-03.

Intervention needed: Deficiency ofenergy and protein affect growth,production and reproduction. In orderto optimally utilize the available feedresources, feed processingtechnologies like fortified fodderblocks, ammonia treatment andcomplete feed / total mixed ration forefficient utilization of crop residuesshould be developed and used.Reproductive efficiency is greatlyaffected by minerals in the feed. Areaspecific mineral mixtures should beused as part of the feed. Farmers needto be made aware about theadvantages of complete feed andencouraged use of compound feed.Some of the diseases viz. FMD, HS,mastitis, brucellosis and parasiticdiseases were mainly responsible forlosses due to morbidity and mortality.Focus of the government should beon disease diagnosis and prophylacticmanagement of important diseasesthrough vaccination. Reduction in

Table 3: Income from crops and dairying across land holdings

Source: Sidhu, R.S. and Bhullar, A.S. (2004). ‘Changing structure of the livestock Economyin Punjab: Impact of livestock on income and employment patterns’. Indian Journal ofAgricultural Economics, Vol 59 (3), pp 578

losses from diseases shall furtherimprove economics of livestockproduction. Although breedingprograms to improve quality oflivestock exist, these need to bestrengthened and managed onscientific lines so that quality breedingmales and semen is produced as perthe breeding policy requirement andmade available to the farmers. Nearabsence of animal husbandryextension network is one of the mainreasons for poor dissemination oftechnologies. Even the nutritionaltechnologies for improving low qualityroughages have found littleacceptance in small farm productionsystem because of poordemonstration of processes. Theexisting extension institutions havenot been effective in delivery oftechnologies, processes and practicescritical to support livestockimprovement. The need is to developan independent animal husbandryextension model for delivery ofservices and inputs at the farmer'sdoor..

The problems of livestockproduction as related to infertility,improving digestibility of crop residuesand improving diagnostics andvaccines should be researched onpriority. The focus should be onproducing cost effective technologiesespecially suited to small farmproduction system. Higher Governmentinvestments in animal husbandryinfrastructure, development, extensionand research would greatly help inexploiting the potential of livestocksector for providing food security,employment and increasing incomefrom livestock production.

Vice-Chancellor, Guru Angad DevVeterinary & Animal Sciences

University, Ludhiana


Dairy Farming - Towards livelihood

security of small farmers

Dr Amrita Patel

With an estimated milk productionof about 105 million tonnes during2007-08, India continues to be thelargest producer of milk in theworld. Over the last two decades,growth in milk production was about4 percent per annum compared toa growth of 2 per cent per annum inpopulation and food grains.Milk is India’s single largest agri-cultural commodity in both quan-tity and value terms, larger than eventhe principal cereal crops – namelyrice and wheat. Although the con-tribution of agriculture including al-lied activities in the national GrossDomestic Product (GDP) has de-clined from 22.9% in 1999- 2000 to16.3% in 2007-08 the contributionof livestock to agriculture GDP hasincreased from 23.1% to 25.6%during the same period, primarilydue to growth in milk production asmilk contributes to more than twothirds of the value of livestock out-put.More than 70 mil-lion households areengaged in dairy-ing, representingnearly 50% of allrural households, ofwhich a majority ofthem are landless,marginal and smallfarmers.The livestock sectorwhich includes thedairy sector pro-vides significantsel f -employmentopportunities. Asper the NationalSample Survey Organization(NSSO) data (61st round - July 2004to June 2005) the estimate of em-ployment generated by the ani-mal husbandry sector was around11.44 million in principal status and11.01 millions in subsidiary statuswhich was 5.5 per cent of the totalworking population in rural areas.Out of the 22.5 million engaged in

the animal husbandry sector 16.8million were women, constituting70 per cent.There are some critical aspectswhich impact on livelihood security:· Access to opportunities and

stability in incomes· Sustainability and long term

growth prospects

Access to opportunities and sta-bility in incomesDairying in India is scale neutral,since it is possible to produce milkwith even one or two milch animals.Thus small producers are not dis-advantaged as compared to largersize farms. It is for this reason thatsmall producers continue to ac-count for a major portion of the own-ership of milch animals.Small farmers with landholdingsupto 2 ha. account for about 90percent of households and ownabout 74 % of the milch animals.

On the other hand they operateonly about 43% of the total areacultivated by rural households. Asper NSSO data, small and marginalfarmers with landholdings upto 2ha. increased their ownership ofmilch animals from 68% in 1991-92 to 74% in 2002-03, indicatingthat growth in milk production didnot lead to concentration of produc-

tion in large farms.The income from dairy constitutesnearly half of the total gross incomefor landless wage earning house-holds, compared to only about onethird of total gross income in thecase of other households.Dairying as an economic activity ismore stable than crop farming forsmall farmers since the income fromdairy farming is received in small

amounts at regularintervals of time, un-like income fromcrops which is usu-ally seasonal. Dairyfarming therefore pro-vides for an indirectinsurance coveragainst risks such ascrop failures due tocalamities such asdrought and pests. Amilch animal alsoacts as a store ofwealth, as it is anasset that helps totide over unforeseendemands for liquid-

ity.Arid and rainfed regions account for63% of cattle and 47% of buffaloesin the country as per the LivestockCensus of 2003. This indicates thatdairying contributes to stabilizingfarm household income in such re-gions, where rural households faceadverse climatic conditions and donot benefit from assured irrigation


or improved varieties of seed.

Sustainability and long termgrowthDairying in India is largely a low in-put output model, since crop resi-dues and other by-products consti-tute the major portion of feed andfamily labour handles farm opera-tions. This reduces the demandon natural resources such as landand energy, which provides the ba-sis for a more sustainable growthfor dairying.Livelihood security in any economicactivity is sustainable if the longterm prospects of that activity arefavourable. Owing to a rise in percapita income, the domestic mar-ket for milk and milk products isgrowing rapidly, which is indicatedby the increase in the proportion ofhouseholds consuming milk, inboth urban and rural areas. Be-tween 1987-88 and 2004-05, theproportion of households reportingmilk consumption has increasedfrom 62 % to 71 % in rural areasand from 79 % to 85 % in urbanareas.Based on growth trends in incomeand population, it is expected thatthe demand for milk would rise toabout 180 million tonnes by 2021-22, at a growth rate of about 4%

per annum. The additional milk pro-duction could contribute an addi-tional Rs 45,000 crores (at currentprices) of gross income to farmers.The long term prospects for dairy-ing as a livelihood are thereforefavourable, and would contribute tostrengthening the livelihood secu-rity of small dairy farmers.Even though dairying in India hasmade significant progress, it stillfaces a number of challenges.These include· Remaining competitive· Managing natural resources and

climatic uncertainties· Meeting feed requirements to

sustain productivity· Increasing coverage by institu-

tional structures

Remaining competitiveDeveloped countries have strived tomaintain competitiveness in dairy-ing by securing productivity gainsthrough increased scale of opera-tions, relentless improvement ingenetic potential and putting hugetracts of land for feed grains or pas-ture. On the other hand dairying inIndia has maintained its competi-tiveness, through a combination ofappropriate feed and labour prac-tices, which ensured that costs arekept to the minimum. Using crop

residues and byproductsas feed and extensiveuse of family labour forfarm operations ensureefficient utilization of re-sources that otherwisehave limited alternativeeconomic value. It is be-cause of this that dairy-ing in India is competitivein spite of constraintssuch as small scale ofproduction, minimal capi-tal and equipment, lownutritive feeds and a largeproportion of animals withlow productivity.As a result of globaliza-tion, the volatility in inter-national markets is in-creasingly impacting onour domestic market andthereby affecting the sta-bility in prices. Interna-

tional markets for dairy productshave significant distortions due tothe prevalence of subsidies – bothfor production and export in devel-oped countries such as EU and US.High levels of subsidies for produc-tion and trade continue to adverselyimpact on developing countries.Remaining competitive in such con-ditions will remain a key challengefor small farmers engaged in dairy-ing.

Managing natural resources andclimatic uncertaintiesSoil fertility and quality, the avail-ability of water and particularly theexcessive loss of forest cover willhave a major impact on agricultureand dairying in our country. ‘Devel-opment’ is leading to devastationof natural ecosystems and thecountry’s ecosystems as a whole:large irrigation systems which aregoing out of use prematurely be-cause of deforestation of uplands –mountains, hills and plateaus com-prising 40 % of the country’s geo-graphical area; ill conceived irriga-tion leading to alkalinity andsalinisation because the naturaldrainage systems have been irrepa-rably damaged and because com-petition rather than cooperation hasled to the overuse and misuse ofavailable water resources in someareas leading to short term gain forsome but with disastrous long termconsequences.The National Commission for Inte-grated Water Resources Manage-ment places the national water re-quirement for livestock at 5 billioncubic metres, and this is withoutaccounting for water required forbiomass, crop residue and clean-ing. This is water for drinking alone!Besides quantity, quality of wateris also a concern since increasingsalinity has rendered water in sev-eral locations unpalatable and lev-els of fluorine are also surfacing ascause for concern in many parts ofthe country – Gujarat and AndhraPradesh in particular.Arid and rainfed region districts havea large proportion of the milch ani-mals of the country. Howeverground water availability in these


regions is declining due to a com-bination of overexploitation and in-adequate conservation measures.In the arid region, 14 districts outof 15 districts are either overex-ploited or in the critical and semicritical stage of exploitation of wa-ter resources and the same is thecase for about 30 per cent of rainfeddistricts. The declining level of wa-ter availability is likely to affect feedavailability as well as the risk ofanimal mortality, if they face sus-tained spells of drought.

Meeting feed requirements tosustain productivityBetween 1998-99 and 2005-06, thearea under food crops in India de-clined by 3 million hectares from131 million hectares to 128 millionhectares, resulting in their share ofgross cropped area reducing from69 per cent to 66 per cent. The shiftin cropping pattern from area underfood crops to other commercialcrops has serious implications onthe availability of crop residues. Tocompound matters, prices of feedingredients have been rising rapidlyin recent years due to stagnant pro-duction rising demand and exports.The rise in prices of feed and fod-der resources is likely to have agreater impact on small and mar-ginal farmers engaged in dairy farm-ing, since they are dependent ongrazing lands and purchased feedmaterials. The rapid decline in com-mon property resources (CPR)such as grazing lands is particu-larly a matter of grave concern.Decline in availability and rise inprices of feed, therefore needs tobe addressed urgently if we are toensure livelihoods to small farmers.

Increasing coverage by institu-tional structuresDairy cooperatives have made rapidstrides in terms of membership,procurement and marketing of milk.Currently, the dairy cooperative net-work consists of 1.29 lakh villagedairy cooperative societies with amembership of about 13.4 millionmilk producers, of which about 27per cent are women. These coop-eratives procured on an average

2.49 crore Kgof milk per dayduring 2008-09leading tomore than Rs.10,800 croreper annum be-ing transferredto milk pro-ducers in theirvillage as pay-ment for theirmilk. The dairycoopera t i venetwork thus supports the liveli-hood security of small dairy farm-ers, by providing regular access tomarkets for the milk produced bytheir members.

However, we face three critical andinter related challenges.The first is that cooperatives are nolonger the only major supplier in ourmilk markets. The entry of the pri-vate sector as well as multination-als in the milk business is no longerregulated. This is resulting in aslowing down of the earlier rapidgrowth of cooperatives.Secondly, we need to ensure thatlarger numbers of dairy producersare brought in the main stream ofour economy.Thirdly, almost all the marketablemilk surplus comes from 14 states.Today cooperatives reach onlyabout 18% of the villages in thesestates and cover an estimated 17%of the dairy farmers. In the ab-sence of accelerated growth, hun-dreds and thousands of small milkproducers are likely to be left outof the cooperative domain and theensuing benefits. To meet thischallenge, NDDB is promoting thesetting up of Producer Companieswhich are institutional structuresthat adopt the basic principles ofcooperation, voluntary and unre-stricted membership, democraticmember control, participation ofmembers in economic decisions,autonomy and independence, butwhich are registered as Companies.It is proposed that these ProducerCompanies which can also be con-sidered as New Generation Coop-eratives would be formed in areas

where there is a need that goesbeyond the capacities or will of ex-isting cooperatives.There is thus a need to promote aplurality of producer centric insti-tutions under various legislativeframeworks such as institutionsset up as cooperatives or under thelegal framework for Producer Com-panies or limited liability partner-ships.

National Dairy PlanTo address the challenges ofmeeting t he projected demandfor milk of 180 million tonnes by2021-22, the NDDB has prepareda National Dairy Plan.

The Plan focuses on1. Productivity measures,

namely through breeding andnutrition, to enhance milk pro-duction as the average incre-mental increase will have to be5 million tonnes of milk overthe next 15 years,

2. Strengthening and expandingthe infrastructure to procure,process and market milkthrough existing and new in-stitutional structures.

These measures would not onlyprovide for greater market accessfor small producers across thecountry, but would also improve theeconomics of dairying through pro-ductivity gains. Much of the in-creased milk production will resultin additional incomes accruing tomarginal and small farmers andlandless.

Chairperson, National Dairy Develop-ment Board, Anand


SerSerSerSerServicesvicesvicesvicesvices


Agriculture, the vocation that hadlost its dignity over the years ow-ing to the economic indifference ithas cast to its stake holders, is nowslowly gaining grounds in the lightof corporatisation. Bygone are thedays when agriculture was a mat-ter of mere subsistence and a modeof survival for the poor. As the worlditself has opened up gates and asmany nations embrace a more lib-eralized economy, India stands togain its share of benefits. Thoughthe nation is still embroiled in theunabated farmers' suicide and nu-merous inequities existing in thissector, this profession has trans-formed itself and has attained thestatus of an enterprise involving theleanest and the mightiest entitiesin its fold.

A sector which was once prima-rily production driven has now sig-nificantly transformed in to a mar-ket driven enterprise that has allpoised to become the next driver ofthe Indian economy. The Indian ru-ral market holds a great promisefor the future of India and so is theagri sector. More than fifty percentof the total retail market in India isheld by rural retail. The growth ofrural retail market has even out-paced that of the urban market andthe corporate sector which onceused to shy away from investing inrural development is today vigor-ously competing to invest and be apart of the over all development.Players of various hues such as agriinput industries, agri machinerycompanies, processors, exporters,retailers etc are vying for their spacein rural India. Many retail chains arenow opting to enter into contractfarming so that they could controlthe flow of produce from the initialstages itself.

Though the sector is boomingwith opportunities, the most perti-nent issue of maintaining produc-

Emerging Career Opportunities for

Agriculture Graduatestivity and quality remains largely un-answered and unattended to. Thissector is in need of a total revampin terms of skilled or 'learned' man-power. Unfortunately, for educatedpeople, agriculture sector is loos-ing charm and is failing to attractthe talent, be it research, aca-demic, extension or production re-lated jobs. However, theagribusiness sector and the newemerging knowledge related busi-nesses, provide more challengingopportunities for the educatedyouths, particularly where MNCs orlarge organized sector companiesare involved. The growingagribusiness sector has the poten-tial of providing a number of job op-portunities which can only be ca-tered more efficiently by studentswith agriculture sciences back-ground.

The Changing face of Agri Pro-fession

Earlier, for a graduate or a postgraduate of this discipline, govern-ment was the sole employment pro-vider. Most of the work pertained toextension activities which were infact more productive during theearly seventies with T&V systems.The golden years of agriculture fol-

lowing the green revolution weregolden period for the agri profes-sionals as well. But gradually withtime, their effectiveness wore outand so did the profession. The num-ber of jobs with government eitherremained stagnant or the numberof graduates outnumbered the ac-tual vacancies. Whatever the rea-son, the jobs with governmentshowed a declining trend and thegraduates faced a grim future.

The government's increasingwithdrawal from the productionscene and the entry of private sec-tor has thrown open several oppor-tunities for the agri graduates in thecorporate sector. The involvementof private sector, in the beginningwas mostly with the input indus-tries, such as fertilizers, seeds,pesticides etc., which still offer

Mr MJ Khan

Existing Job Scenario in Agriculture Sector

The National Scenario: Approx. 16,000 Agri graduates pass out every year10 institutes and 24 SAUs


good number of job openings to ag-riculture graduates.

Seeds IndustrySeed industry for instance, is

one of the fastest growing agri-in-put industries, ever since the entryof major corporates in 1988, whennew seeds policy was announced.And now, with the increasing appli-cation of biotechnology, the paceof growth is likely to increase. Themarket share of the corporates inthe prolific seed industry is a whop-ping 70 per cent, whereas the gov-ernment involvement is limited to30 per cent. The corporate sectormostly having tie ups with globalbig wigs have a very impressivegrowth rate and better organized tohandle the demand pressures ofthe market. More importantly, theirbetter working culture and pay outscreate more opportunities for tal-ents in the agri sector. With a 15per cent growth rate and a turn over

of Rs. 5000 crores, this industryaccounts for the largest number ofnew job openings. In seed indus-try, an agri graduate can find job inResearch and Development, pro-duction, product development,sales, marketing and procurementetc. The major players areMonsanto, Mahyco, Proagro,Advanta, Syngenta, Nuziveedu,Rasi, Indo-American, JK Seeds,Namdhari, Nunhems, Bayer, BejoSheetal, Ankur Seeds, VibhaAgrotech etc.

Pesticide IndustryAnother preferred career desti-

nation for the agriculture andagribusiness graduates is the Rs.6000 crore strong Pesticide indus-try, which is dominated by MNCsand other major corporates. Interms of job openings, careergrowth and compensation package,this industry has been on the topduring the last two decades. There

are a good number of agri gradu-ates holding top positions in theindustry today. Fresh openings aremostly in the sales & marketingareas. The preferred qualificationwould be B.Sc (Ag) or M.Sc. (Ag.),preferably with MBA. But for morespecialized avenues, this sectorrequires candidates to be M.Sc.(Ag) or Ph.D in disciplines like en-tomology, pathology, agronomy,weed sciences and agriculturechemicals. The major players areSyngenta, Bayer, BASF,Cheminova,

Monsanto, DuPont, Dow etc.among MNCs and Rallis, UPL,Excel, Dhanuka, Gharda, Pesti-cides India, Crystal Phosphates,NACL etc. among Indian compa-nies.

Fertiliser IndustryThe largest input industry of ag-

riculture is the fertilizer industrywith a business size of approx. Rs.50,000 crores. The industry how-ever operates under tight Govern-ment controls with respect to in-vestments, gas availability, outputallocations and subsidies. They arecomprised of Govt. sector, coopera-tive sector and private sector com-panies, sharing almost equal sizeof the market. The industry is defi-cient of fresh investments, as in thelast 15 years, no new fertilizer planthas come up in India. For the open-ings in marketing and agricultureservices, the preferred qualificationis B. Sc. (Ag.) or M.Sc. Ag. inAgronomy or Soil Science and formarketing it is agriculture gradua-tion with M.B.A. The major playersin this industry are NFL, RCF, IPLetc. in Govt. sector, IFFCO &Kribhco in Cooperative and TCL,Chambal, Indo-Gulf, Coromandal,SPIC, DSCL, NFCL etc. in privatesector.

Farm Machinery IndustryAgri machinery sector is also

holding up tight among other indus-tries. Unlike other sections, this par-ticular sector has shown a keen in-terest towards the agriculture engi-neers or mechanical engineers, al-


though there are also some com-panies which have hired B.Sc. (Ag.)and agribusiness graduates. Thetractor industry is comprised ofsome major names such asMahindra, TAFE, Escorts, Eicher,HMT, Punjab Tractors, Sonalika,New Holland, John Deere, BajajTempo etc. Apart from tractors,other equipments such as thresh-ers, trolleys, cultivating equipmentsetc. are manufactured by mostlysmall sector companies.

However in the irrigations sys-tems, manufacturers include somemajor names like Kirloskar, Jain Ir-rigation, Netafim, Plastro, Premierirrigation etc.

These industries also holdpromise for many job opportunitiesfor agriculture graduates. Thelaunch of Micro-irrigation projectsby States like APMIP in AndhraPradesh, GGRC in Gujarat, HaritRajasthan etc. have opened uplarge number of job opportunitiesfor agriculture graduates. Underthese projects, companies supply-ing MI systems are mandated torecruit agri graduates or agri engi-neers for providing services to farm-ers.

Farm Credit IndustryRural credit, a crucial input for

agriculture is mostly catered to bynationalized banks, cooperativebanks, RRBs and other govt. insti-tutions like NABARD etc. Agricul-ture graduates stand a great deal

of chance of getting in to thesekinds of institutions. In fact in 2008- 09, public sectors banks were thehighest recruiters of agriculture andagribusiness graduates in India.Moreover, many leading privatebanks like ICICI have increasedtheir share of rural banking. So didmany micro finance institutions.Thus the opportunities for the can-didates with agri background in thissector have been on the rise. Thereis likely to be good growth in ruralcredit industry, as now conceptslike Kisan Credit Cards, Online pur-chase crediting systems etc. arein place as also the general growthin demand for credit due to varietyof factors, like increasing commer-

cial approach to farming, involve-ment of corporate, diversification tohigh value crops etc..

The Prospective Areas for AgriProfessionals

Apart from the conventional jobopportunities, now the agri gradu-ates are more likely to encountermore challenging and demandingjobs that too in many unlikely ar-eas such as IT, biotechnology, foodprocessing, cold storage, agricul-ture supply chain managementamong many others, which are of-fering tremendous opportunities.Also, the increasing role of NGOsand other developmental organiza-tions in the rural scene have alsocreated many opportunities wherethe agri professionals can provetheir mettle.

Since the specifics of jobs arechanging with market dynamics, theusual curriculum in many SAUs isinsufficient. The concept of market-ing and management which is nonexistent in the college curriculumplays a huge role in any progres-sive career that an agri graduateembarks upon. So a MBA becomesall the more necessary if one hasthe ambition to excel in the job.

The opportunities for agriculturegraduates to acquire the knowledgeof management concepts are lim-ited with less than 1500 seats avail-able in agribusiness management


institutes and SAUs against aboutan annual production of more than16,000 agriculture graduates fromSAUs and affiliate colleges. A postgraduate degree in agribusinessmanagement in this scenario canbe viewed as a ladder to one's cor-porate career growth. The industryrequires no less than 2500agribusiness management profes-sionals annually and as already dis-cussed, we have a supply of onlyabout 1500 only. A huge demandsupply gap is resulting in sky rock-eting salaries and a need is felt forproducing more number ofagribusiness management profes-sionals to sustain the growth of theindustry.

Apart from this, the knowledgeof agriculture, agribusiness, mar-ket, products, competition, latestdevelopment in research, policychanges, new concepts in agricul-ture etc. is becoming more andmore important, as the nature ofbusiness keeps on changing dueto technological developments,corporatisation and globalization.

R&D is yet another area, whichhas been attracting considerable at-tention both from the governmentbodies and private sector. Although,the positions in the existing gov-ernment bodies as scientists havea limit regarding the number, theglory attached to serving in someof the nation's premier institutionshas never subsided. There is stillbreathtakingly high attendance tothe examinations held for these cov-eted posts. The scenario is quitedifferent in the case of the private

sector wherethe close com-petition de-mands innova-tion, which canonly be ren-dered by asound R&D.So now, mostof the inputcompanies es-pecially thosein seed sectorare giving impe-tus to the R&D.Hence thosewith researchin their mindcan try in the private sector as well.When research is the priority, thecandidates have to expand theirrésumé with more qualification go-ing beyond post graduation. A PhDand sometimes a post doctoral fel-lowship may come in handy toserve as a scientist.

Agriculture as a sector itself hasundergone many changes and soare the opportunities associatedwith it. The near future will see moreeducational institutes in theagribusiness sector coming up tocater to the increasing demand fortrained professionals for private sec-tor. The corporates are also ex-pected to step in with their partici-pation to produce sufficient num-ber of skilled and employable man-power in agribusiness. Variousshort term and long term courses,distance learning courses and skillenhancement training programmesare a definite yes in the days to

come. The student community inagriculture has to look ahead andgear up to take the challenges ofthe unfolding world of agriculture andcontribute to the larger growth anddevelopment of the nation. Withtrade and agriculture getting glo-bally integrated and in post WTOscenario, the global opportunitiesare awaiting Indian agri profession-als. There are also strong opportu-nities emerging for them to servethe millions of people living in therural areas by participating in ruralgrowth phenomenon, wherecorporates and institutions are ag-gressively involved.

President & CEO, Institute ofAgribusiness Management, NoidaCentre for Agriculture and Rural

DevelopmentConcept Agrotech Consultants Ltd

Agriculture Today, Krishi Today andAgri News Service


AGRIBUSINESS

Dr BDTripathi

The concept of agribusiness hasbeen dormant for quite time since in-dependence. The very first initiativein this direction was taken by IndianInstitute of Management, Ahmedabadby establishing Centre for Manage-ment of Agriculture (CMA) during theearly 70’s, followed by the establish-ment of an exclusive institute for ruralmanagement at ANAND.Today more than a dozen reputed in-stitutes/colleges including two IndianInstitute of Management (IIMs),Ahmedabad and Lucknow and Na-tional Institute of Agricultural Exten-sion Management (MANAGE),Hyderabad offer exclusive full timeeducation programmes inagribusiness management, besidespostgraduate courses inagribusiness by a large number ofAgricultural Universities.Any agribusiness educationprogramme needs to look into differ-ent companies and stakeholdersneeds. The stake holders mostly in-clude faculty-competent enough todevelop and handle the curriculum;agribusiness and allied sector com-panies-covering different sub sectorsviz., finance, inputs, marketing, pro-cessing, trading, insurance, re-search, energy (alternative fuels) etc.;students-willing to take up work inagribusiness sector as career or asentrepreneurs and controlling au-thorities.One of the major challenges for theinstitutions starting an agribusinessmanagement programme is devel-oping an appropriate curriculum. In-stitutions follow different processesand models for deciding the curricu-lum. Given the consumer orientednature of agribusiness, the involve-ment of senior managers and execu-tives at some level will become nec-essary in developing the curriculum.In the Indian context, the syllabus ofagribusiness courses followed byvarious management institutions ingeneral covers all fundamental man-agement principles in the areas ofmarketing, finance, operations, hu-man resource management and in-formation technology. In the field of

agribusiness, the courses includemicro-finance and micro-credit, ruralmarketing, international trade in agri-commodities, agri-entrepreneurship,agri-input marketing, supply chainmanagement, rural marketing, pro-curement management, agriculturefinance, agribusiness risk manage-ment, emerging issues inagribusiness and food industry, com-modity futures, agriculture projectmanagement etc. depending uponthe needs of business skills & knowl-edge to be imparted to the students.Besides development of appropriatecurriculum, there is an imminentneed to have action research andwriting of relevant cases inagribusiness field and testing theirsuitability for education purposes.

What Business Companies look for� Honesty, sincerity, integrity and

discipline� Sharp business thinking/

intelligence� Good self manager� Understanding of rural life and

problems of farmers� Ability to handle subordinates,

specially working in rural areas� High intelligence & Emotional

quotient� Adaptability� Conceptual skills/Soft skills� Competitive nature with fairness

& honesty in core. Have win-winattitude

� A good time Manager with abilityto prioritize his/her activities

� Ability to handle ICT systemsefficiently

For the success of professional edu-cation programme, the basic prin-ciple is its focus on preparing the stu-dents as per the requirements ofbusiness and industry.What is actually needed is re-align-ment of the course curriculum withmore emphasis on ethics and Cor-porate Social Responsibility (CSR).The students are the future manag-ers and therefore a glimpse of theCSR practices delivered will help toproduce leaders to the society whocan manage, lead, mentor and incul-

cate valuesand prin-ciples in thesociety.

Profile of anAgr i -bus i -ness Stu-dent

Profile ofa typicalagribusiness management studentto become successful manager:� Good knowledge of subject matter� Focus on the objective to become

a successful agribusinessmanager.

� Have capacity to study / workminimum 14-16 hours/day.

� Open minded with capacity toabsorb new concept

� Computer literate and technologysavvy

� Language proficiency in Englishand urge to learn foreign languageif desires to serve multinationalcompanies.

� Interest to know latest inbusiness world from TV channels

� Rural orientation about people,their profession, economy & theirneeds.

� Action oriented especially tocomplete the project andassignment ahead of deadlines.

� Initiatives to reach out for alumniin various organizations forenhancing, knowledge aboutneeds of the industry.

Controlling AuthoritiesToday agribusiness education is

in a state of growth. One importantway to sustain this growth is qualityeducation which will help to transforman agribusiness student into a dy-namic manager / entrepreneur. Thegovernment institutions and universi-ties need to have a strict vigilance onquality norms of teaching and avoidmushrooming of colleges, as havebeen in the case of engineering edu-cation in certain states which has ledto excess seats with constrained fac-ulty.

Director, MANAGE, Hyderabad

DEVELOPING LEADERS OF TOMORROW


Time has come to go a step aheadof just repeating certain phrasesover decades like “Agriculture is thebackbone of the country”, “about70% of Indian Population lives invillages” and so on. Let us now linkagriculture with agribusiness inwhatever we do or say within therealm of agriculture. At present, wecan very well say that “Agribusinesshas entered a new era”, marked byvibrant business activities; farmingbecoming hitech and technology di-rected; business becoming moreglobal, farmers getting tech saavy,hitherto less heard business mod-els in agriculture like commodityexchanges coming up in the coun-try, business houses and entrepre-neurs completely inactive inagribusiness even in the recentpast currently showing interest inagribusiness, global slowdownpointing out at the importance offarming and farming sectors aresome of the trends that is definingnew contours in the country’sagribusiness sectors.

Technology and globalization ismaking agribusiness operationsmore competitive, tech driven, fastand trendy. Along with the entry ofnew players in the business fromeven previously unthought of sec-tors like IT, Telecom, FMCG andothers, there has been an import ofnew culture of work style also. Alsomany of the family owned compa-nies in agribusiness, with the nextgeneration taking up the mantle, isundergoing a complete makeoverin terms of work style and function-ing in tune with the modern times.

Emerging Human ResourcesRequirement

All these indicate thatagribusiness is witnessing a com-plete change and as a result, call-ing for new paradigms in humanresource requirements for the sec-

The Back DropAgribusiness-Past and Present

tor. Gone are the days when a com-pany in agribusiness sector couldfulfill its requirements at its ownpace, going to some renownedcampuses, or placing adds in newspaper or head hunting for even thesmallest posts through employeereferral or spotting an employee ofanother company performing wellin the market and wooing him upto join the company.

With the advent of sectors likeF&V retail business, cold chain ac-tivities, rural finances and diversifi-cation of various traditional compa-nies from fertilizer, seed, agro-chemicals business into other re-lated business interests, humanresource requirement in the presentday for agribusiness companieshas become very critical. Compa-nies need quality manpower in theshortest time period. At the sametime, there is increased competi-tion, greater pressure, need forgreater operational efficiency andgreater focus on the core activities.Also, business groups from diversesectors like IT, Telecom etc feel aneed to know more about the sec-tor vis-à-vis the right man-poweravailability and requirement as-pects.

Is Cost Reduction the onlyMotive…Different Aspects of HROutsourcingWhile outsourcing various HR func-tions to independent third party ven-dors, an organization, apart fromcost reduction and focusing on itscore activities,� Consultant capabilities and

talent: On many occasions, acompany would like to utilizethe domain knowledge andexpertise of the vendor in a costeffective way throughoutsourcing its strategic coreactivities in HR.

� Functions Difficult to Man-

ager: Functions like that ofbenefits administration etc., aresometimes very cumbersome,difficult and time taking for anorganization. Moreover, theseactivities in no way contributeto the core activities of the or-ganization. In such instances,an organization looks forwardtowards outsourcing these ac-tivities.

� Specific Technologies: Manya times, companies offeringoutsourcing services in HRactivities possess certain tech-nologies specific for the pur-pose. Owning these technolo-gies make sense in case thereis a very large clientele andregular requirements like thatof the vendors of HRoutsourcing. However, theymake less of any economicsense for an organization for itsown manpower management.In that situation, it looks for-ward to outsource.

� Resources Not Available In-ternally Within theOrganisation: In many cases,certain resources like that of adatabase or pool of trainedmanpower or networking capa-bilities etc of a vendor is eyedby an organization and HR ac-tivities outsourced to utilizethose resources.

� Asset Transfer: In some in-stances, outsourcing deals

Pinaki Ranjan Dey


help a company to transfersome of its assets-some orentire part of specific assets,to the vendor. It can even en-compass transfer of some ofits staff.

Domain Knowledge and HROutsourcing in Agribusiness-The Need Analysis

Other than the advantages ofany general outsourcing activitieslike saving of cost, focus on corebusiness activities and others,some of the specific advantages ofoutsourcing HR activities typical tothe agribusiness sector are:� Typical nature of Agribusiness:

Agribusiness is quite uniquewhen compared to other busi-ness sectors. The supply chainaspects are quite complex -presence of unorganized play-ers within the ecosystem ofagribusiness, requirement of alot of business acumen alongwith technical knowledge aboutagricultural sciences alongwith a fair degree of uncertaintyin the business from the pointof view of vagaries of nature,seasonality of production, per-ishable nature of products etc.All these calls in for maximumoperational efficiency for theorganization in agribusinesswith minimizing risk at eachaspects of operation includingmanpower management. Dueto seasonality of productionand also business intensity,manpower requirement fluctu-ates between various seasonsand many organizations con-siders temporary staffing as aconvenient method of utilizinghuman resource most produc-tively and cost effectively.

� Requirement of technicalknowledge: Agricultural sci-ence includes diverse fieldsfrom genetics and plant breed-ing, entomology, pathology toeconomics and extension. Theagribusiness in the same waycategorises itself with opera-tions requiring manpower fromthese diverse fields of agricul-ture sciences. Along these,

one requires a right blend of ITexposure and business acu-men. As a result, the selectionprocess of a right candidate fora particular job depends on thetrue understanding of the jobdescription rightly understand-ing its technical words, knowl-edge of the right terminologiesand synonymous keywords,rightly understand the syner-gies and the variations betweendifferent sub sectors withinagribusiness sectors. In short,proper understanding of theseaspects would largely deter-mine the right evaluation of aprospective employee and themanagement may not alwaysafford to do that at every stepin order to save their time forfocusing on more core activi-ties. They then would like tooutsource these activities toorganizations specialized inagribusiness sector or havinglong presence in agribusinesssector with qualified technicalpeople.

� Bulk Recruitment Activities:Sectors like retail industry onvarious occasions requires alarge manpower in a very shorttime. They would in such asituation like to outsource therecruitment function to someorganizations dedicated to theagribusiness sector. Under-standing the rural economy asa backdrop of agribusiness isquite crucial in understandingcompany’s manpower require-ments. For functions like pro-curement in retail operations,one needs to understand dif-ferent aspects of agri supplychain, interaction with farmersand sensitivities and intricaciesinvolved in dealing with the ru-ral ecosystem. An organizationhaving familiarity with theseaspects tend to find andsource the right candidate inshortest possible time to theclients, there by saving timeand money for the client.

� New Entries In the Market andNeed to Convince ProspectiveEmployees: New entries can

be in terms of entering a newgeographic area, an estab-lished company in some othersector diversifying intoagribusiness, an establishedcompany in agribusiness en-tering into a another relatedbusiness, entirely a newstartup or a multinational inagribusiness starting opera-tions in the country. All thesetypes of companies would liketo outsource their recruitmentand different HR activities tosome recruitment agenciesspecialized in agribusiness.Usually, for new entries, unlessit’s a huge multinational or abig business group, prospec-tive candidates seeks informa-tion in terms of their future pros-pects and career growth. A de-tailed domain knowledge,awareness of the technical as-pects of agriculture sectoralong with clear understandingof the future trend of the sectorhelps to guide a candidate inthe right way and incite furtherinterest in the company as aprospective candidate.

� Head Hunting for Senior Posi-tions While Maintaining Se-crecy: Sometimes, in thebuildup of replacing a seniorlevel position of any organiza-tion, secrecy is maintained forvarious organizational and op-erational reasons and generallypreferred to be done throughsome consultants. Extent ofdomain knowledge and net-working in the agribusinesssector in such a situation helpsin sourcing the right candidatein the shortest possible timethrough head hunting.

HR Outsourcing in Agribusiness-A Win Win Situation For AllOutsourcing some functions of HRactivities like recruitment and staff-ing is in no way replacing the inter-nal HR team of an agribusinesscompany. While the internal HRteam of a company takes care ofvarious important activities of hu-man resource development withinthe company along with various


corporate social responsibilitiescoming up in big day now-a-days,it has the luxury of getting a spe-cialized service of a third party pro-viding its recruitment needs throughsourcing the right candidate utiliz-ing its domain and technical knowl-edge in agriculture sciences andagribusiness.

Issues and Challenges in HROutsourcing in Agribusiness� Shortage of skilled man-

power: One of the major is-sues in the sector is the short-age of people who know thenitty-gritty of agribusiness aswell as the operational areasand skills of human resourceoutsourcing functions. As theHR outsourcing industry inagribusiness is still in a na-scent stage, agribusiness pro-fessionals and agriculturegraduates are not much awareof the career opportunities inthis sector.

� Existence of many unorga-nized players: HRoutsourcing sector is markedwith many unorganized play-ers, sometimes even by indi-viduals operating from their liv-ing room, particularly in the re-cruitment activities. These un-organized players can operateon a very small margin. How-ever, HR consulting is some-times more than just network-ing and having contacts withpeople. It requires a lot of in-volvement and investments interms of databases, marketresearch, extensive calling andtraveling which is possible fororganized player with a definitesetup, having offices in variouslocations, manpower and in-vestment cost.

� Disconnect between indus-try needs and curriculumoffered by institutes: Unfor-tunately, in our country, in theagribusiness sector like manyother sectors, there is a greatdisconnect between what theindustry needs and what theinstitutes engaged in agricul-tural sciences offers. The

course curriculum and themind set are very academicand theoretical. Industry wantsreadily employable candidateswho require far less training.This sometimes becomes amajor hurdle in the way tosourcing the right talent.

� Inherent Risks of HROutsourcing: There are somerisks associated with the HRoutsourcing activities like can-didates not joining at the lastmoment causing a lot of incon-venience to the companies.Also, on some occasions, po-sitions are scrapped at the lastminute by organizations caus-ing a loss to the outsourcedcompany in terms of man daysworked on.

Important Growth Drivers of HROutsourcing in Agribusiness� Booming Agribusiness: In

the recent years, inspite of thecurrent recession,agribusiness as a whole isgrowing unlike their contempo-raries in the sectors like IT,exports, Banking etc. Many ofthem have ambitious expan-sion plans too. Despite the re-cent issue of scanty monsoonrains all over the country, it’sexpected that many of the com-panies would go on with theirexpansion plans. They wouldrequire man power for that andwould like to outsource mostpart of that.

� Increased Competition andDecreasing Profit Margins:Competition in some of theagribusiness sectors like agriinputs has increased signifi-cantly. A lot of consolidation,more globalization etc., hasresulted in reduced profit mar-gin. As a result, organizationsare willing to outsource sup-porting activities like recruit-ment in a cost effective man-ner so as to increase opera-tional efficiency and concen-trate more on their core activi-ties.

� Some Big Names in HROutsourcing into

Agribusiness: Many of the bignames in HR outsourcing hith-erto consulting predominantlyfor sectors like IT, Telecom,Healthcare etc are now eyeingthe agribusiness sector. Cer-tainly, this would tend to drivethe HR outsourcing activitiesfurther.

� Entry of various MNCs intoAgribusiness: Though manyMNCs are present in India,many other companies fromoverseas are entering the coun-try in sectors like retail, foodprocessing and others eitherdirectly or indirectly. They wouldlike to expand very fast, recruit-ing a number of people in veryless time. Consequently, theytend to outsource recruitmentfunctions.

ConclusionThe flavour of HR outsourcing is

picking up in agribusiness. Manyof the organizations are increas-ingly realizing the benefits of hav-ing a combination of outsourcedand in-house HR activities, a mixwhose proportion depends on thesize of the organization. However,one should understand that like anyother service industry, one of thecritical success factors of HRoutsourcing service is the mutualtrust and confidence between boththe companies and the vendors. Therelationship should be one of a kindof strategic partners than mere cli-ent relationship. Companies shouldselect a vendor on the basis of pro-viding the maximum returns, some-times not only in terms of direct costsavings but also from the point ofview of several long term benefits.On the other hand, vendors shouldhave a proper understanding of theclients needs, their organizationalculture and should always aim atproviding the maximum returns,stretching that extra mile.

Head-Research and Studies, ConceptAgrotech Consultants Limited


Major InitiativesMajor InitiativesMajor InitiativesMajor InitiativesMajor Initiatives


There is a great need to reduce theinput costs and at the same time im-prove the farm productivity in a sus-tainable manner. A model has beenworked out- based on a number offield demonstration studies in differ-ent parts of India, Africa and far east-ern countries. A model in which inputcost can be reduced by nearly 20 per-cent and at the same time the cropproduction can be enhanced up to20 percent is possible and can be aboon to farmers in most parts of theworld. This is the model, which canbe easily adopted in an evolutionaryway.

Among 8 millennium goals, eradi-cation of poverty and hunger and en-vironmental sustainability are per-haps the most prominent and com-plimentary. The Green Revolutionchanged India from (& some othercountries’) being food deficit to foodsufficient / surplus state. Time is nowfor a new and Sustainable Revolu-tion.

If we look at the challenge that ag-riculture sector has to face during thenext few decades, it is clearly todouble the food production by 2025and triple it by 2050 on less per capitaland, with less water and under envi-ronmentally challenging conditions.

Let us look at the current scenarioand some major developments.� Indian farmers spend nearly

Rs.2 lakh crores on inputs likeseeds, fertilizers, pesticides.

� Nearly Rs. 50,000 crores goesas fertilizer (chemical) subsidy.

� Excessive use of chemical fertil-izers in India has reduced soilferltility and food production(Green Peace & Vishwa Bhartireport – 2009). Fertilizer use effi-ciency is drastically declining. (Ithas already come down from 19kg food-grains per kg fertilizer inmid-60’s to 12 kg/kg in 2007.)

� Our soils are hungrier for organiccarbon. The carbon transfers andtransformations at the soil oreven the cell level can delineate

The 20-20 ModelHigher Farm Production with Lower Input Cost

Dr MH Mehta

the other nutrients such as N, P,S, etc. that become available toplants and microorganisms.

There is now a better understand-ing of Multi Microbial Consortia tech-nology which can substantially im-prove crop productivity and at thesame time reduce the agrochemicalinput costs. Further, new method ofpreparing high quality Biocompostfrom agro-wastes, FYM, etc. cangreatly improve the availability andquality of nutrients of assured stan-dard and much needed Carbon to thesoil. Another startling developmenthas been in the area of pesticides. InJanuary, 2009, the European Coun-cil passed the Council Directive 91-414 banning nearly 45% of the pre-vailing chemical pesticides. This willhave great impact on the overall worldagricultural scenario. As a matter offact in 1993, nearly 740 active ingre-dients were available in Europeanmarket whereas on August, 2008nearly 394 of those were not allowedand 113 more are under review (FCI-Dec., 2008). Two major classes offungicides at risk are triazoles anddithiocarbonate. Triazoles are mainweapon against Septoria- a majorfungal disease in cereals. The Swed-ish Chemicals Agency, a Govt. orga-nization responsible for a non-toxicenvironment was one of the first EUmember to interpret the temporarycriteria for endocrine disruption andpublished a ‘Black List’ of someprominently prevailing chemical pes-ticides.All these developments point out to:� An urgent need for eco-friendly

and effective Biopesticides.� Need for their availability at low

prices and supply.Fortunately several new/alterna-

tive developments offer much hope.

Range of bio inputs :Broadly bio inputs range can be clas-

sified under three main catego-ries :

i) Nutrient Management :

Biofertilizers, EnrichedBiocompost, Multi-microbialCombination of biofertilizers andbiofungicides in the soils.

ii) Biopesticides : Multi microbialbiopesticides, botanicals, phero-mones etc.

iii) Growth enhancers: Amino acids,micro nutrients, seaweed ex-tracts, growth promoters and hor-mones, etc.

Annexure-1 : The typical range ofproducts is given.

It is possible to enhance the farmproductivity and at the same timelower the input costs through the useof agri biotech products. The rangeof multi-microbial consortia productsplay the key role in these combina-tions.

Field Demonstration & TriangularArrangement :

A triangular arrangement involv-ing an Agricultural University, a pri-vate biotech company and an NGOwas thought to be the best way fortaking up demonstrations of the newgeneration agri biotech products forpractical field applications. Aprogramme was taken up whereNavsari Agricultural University (SouthGujarat), (which is a leading Agri Uni-versity with an experimental farm andspecialized group of scientists), alongwith Gujarat Life Sciences (Pvt.) Ltd.(GLS)- a new generation agri andenviro biotech company and the NGO-The Science Ashram with a networkof farmers and links with industriesand universities was made for sucha programme.


Annexure - 2Various products were taken up

for field demonstrations, applicationsare listed (Annexure-2). The typicalproducts involve – enrichedbiocompost, biopesticides,biofertilizers, etc. The list is typical andcan be taken up as combination fromdifferent sources of suppliers also.

Annexure - 3 : Typical Field Demon-stration Data :

In Table-2, a typical productivityenhancement data for different cropsand different data are listed. Inciden-tally there may be variation for differ-ent crops and different locations, butclearly it is established that there is :

(a) Enhancement in productiv-

ity; and (b) Reduction in input costs of agro-chemicals. Similarly in Table-3, typical dataon disease control for various crops in dif-ferent locations by use of biopesticides andbiofungicides show excellent results. It isthus clear that a comprehensive model canbe made available to the farmers, wheresubstantial reduction in input costs and atthe same time improvement in the produc-tivity can be achieved. That this can be donethrough eco-friendly inputs is another bigadvantage for sustainable agricultural prac-tices.

It may be noted that in explaining thismodel, the data for some typical bio prod-ucts are given as indicative. Right combi-nations from any standard suppliers canbe used. Farmers can also develop theirown Biocomposts from their farm wastes,FYM etc. by using standard microbial cul-tures.

Crop Location ResultBanana · Navsari - Navsari Above 25% more production

Agricultural University with above 20% reduction in· Trichy – Tamil Nadu urea dose.

Rice · Bangkok – Thailand Increase in production from· Vapi - Gujarat 14 to 19%.

Maize Gauteng – South Africa 25% more production, 25%less UREA

Castor Kutch - Gujarat Increase in Yield 17-22%Papaya North Gujarat Upto 21% increase in yield

achieved

TypicalProductivity Enhancement Data – Multi microbial Prod-ucts, Bio-Fertilizers and Biocomposts.(Application of Bio Products – SUPERLIFE, WONDERLIFE, BIO COMPOST)

ANNEXURE - 1

ANNEXURE - 2

Crop Location ResultBrinjal Saurashtra / Trichy – Use of MiteNoMite has given control

Tamil Nadu over mites and upto 15 days there wasno need to do any other spray for mites.

Cotton Central Gujarat 80-85% control in various pests usingAlwar - Rajasthan Neem-A-Life

Groundnut Saurashtra 90% control in fungal diseases withTricholife + Superlife.

Roses Mauritius – Central Use of Mite-No-Mite 90% control onTrichy – Tamil Nadu Mite problem. Excellent Growth.

Potato Central Gujarat By using Wonderlife-G in Soil, diseasecontrol upto 94% and upto 22% increasein yield is achieved

Conclusions :(i) There is a dire need of improv-

ing farm productivity and equallythe need to reduce the inputcosts.

(ii) The 20-20 Model can be takenup to substantially help the farm-ers in meeting such a goal.

Applicability of such a model is evenmore urgent under the present con-dition of water shortage and food cri-sis.

President - The Science Ashram -Vadodara, Hon. Chairman -

Gujarat Life Sciences [Ex-Vice Chancellor – Gujarat

Agricultural University]

ANNEXURE - 3

Typical Data : Disease Control - Use of Biopesticides, Biofungicides.Improvement : [Tricholife(Bio fungicide), Superlife, Wonderlife-G,

Neem-A-Life, Mite-no-Mite(Bio pesticide)]


Agriculture is among the oldestorganised occupation and is termedthe primary sector of the economy.Due to the late infusion ofindustrialisation and technology inagriculture, the impact of risk inagriculture seldom received thenecessary attention it required.Now that the focus of developmentalinitiatives are more people centricand in less developed countries themajority of the population live in theagricultural economy, moreattention is paid to risks inagriculture and this needs to bescaled up continuously tobring the much neededprosperity in the rural beltand at the same time toensure the food security ofthe country.Agriculture Insurance as arisk mitigation tool for thefarmers is increasinglygaining recognition as agateway to economicdevelopment and prosperityby managing effectively theirunforeseen risks. This hasbecome a mandate pursuedby governments, regulators,and other agencies in theinterest of the welfare of theconsumer.Agriculture InsuranceCompany of India Ltd wasestablished with the intent to offerrisk management through insuranceto all farmers through productsdeveloped both under Governmentmechanism or independently usingactuarial community.

COMPANY'S PROFILEAGRICULTURE INSURANCECOMPANY OF INDIA LIMITED[AIC] was incorporated on 20thDecember, 2002 to exclusivelycater to the insurance needs of thefarming community, with AuthorisedShare Capital of Rs. 1500 crore andPaid-up Share Capital of Rs. 200

crore, contributed by the following:� General Insurance Corporation

of India [GIC] - 35%� National Bank for Agriculture

and Rural Development[NABARD] - 30%

� National Insurance CompanyLtd. [NIC] - 8.75%

� The New India AssuranceCompany Ltd. [NIA] - 8.75%

� Oriental Insurance CompanyLtd. [OIC] - 8.75%

� United India InsuranceCompany Ltd. - [UII] - 8.75%

AIC commenced its business on

1st April 2003 and, at present, theCompany has a country-widenetwork of 17 Regional Offices atState Capitals, with its Registeredand Head Office at New Delhi.

COMPANY'S VISION� Accelerate the economic

momentum of the Nation bybringing financial stability torural India.

� Innovate and develop rural-oriented and farmer-friendlyinsurance products for allagricultural allied risks.

� Cast a protective net overagricultural and allied activities

from natural perils and risks

COMPANY'S MISSION� Agricultural insurance products

be designed and developed onscientific basis and soundinsurance principles to addressdiverse needs of farmers;

� Improve delivery and service ofagricultural insurance so as tobring the remotest and poorestfarmer under its umbrella in aneconomical and effectivemanner;

� Create widespread awarenessabout agricultural insuranceas the principal riskmitigation tool, and thusestablish it as an effectivebulwark of the rural economy.

COMPANY'S ACTIVITIES� Agriculture and alliedinsurance products, insuringmore than 35 crops duringKharif and 30 crops duringRabi season.� Implementing Agency for"National AgriculturalInsurance Scheme" and"Weather Based CropInsurance Scheme", the CropInsurance Schemes of theGovernment.� Create innovative, tailor-

made & farmer-friendlyinsurance products for specificrisk perceptions, the list whichis constantly being updated isas under:1. Varsha Bima2. Rainfall Insurance3. Potato Insurance4. Mango Insurance5. Wheat Insurance(NDVI+

Weather)6. Pulpwood Insurance7. Generic Weather

Insurance(Rabi)8. Coffee Insurance9. Bio-fuel tree/plant

insurance

M Parshad

Ensuring the Unsure


10. Coconut Insurance11. Rubber plantation

Insurance12. Apple Insurance

COMPANY'S FINANCIALPERFORMANCEBased on the feedback relating tothe existing crop insurancescheme, and with a view to providethe farmers with another option toinsure their crops, the Hon'bleFinance Minister , announcedduring the budget for the financialyear 2007-08 that AIC would beinstrumental in introducing a PilotWeather Based Crop InsuranceScheme (WBCIS).The main feature of this scheme isthat it is a parametric insuranceproduct designed to provideinsurance protection against lossesin crop yield resulting from adverseweather incidences. It providespayout against adverse rainfallincidence (both deficit & excess)during Kharif and adverse incidencein weather parameters like frost,heat, relative humidity, un-seasonalrainfall etc. during Rabi.AIC has so far insured 1004950farmers under WBCIS and paidclaims amounting to Rs 146.86Crores which have benefitted439408 farmers.

GLOBAL LEVELPERFORMANCE ANDRECOGNITIONAgriculture Insurance Company ofIndia Ltd., is the first Indiancompany to win Innovation of theYear award, at the 12th Asia

Insurance Industry AwardsCeremony held in Hong Kong. ShriM. Parshad, Chairman-cum-Managing Director of AgricultureInsurance Company of India Limitedreceived this prestigious Award on23rd November 2008, in the augustpresence of Industry Leaders, 600of whom had gathered in the awardfunction. The winner was selectedby a distinguished panel of 20judges including Regulators,Industry Leaders and InsuranceAssociation's Heads through tworounds of evaluation andassessment.The Chairman-cum-ManagingDirector put on record, during hisacceptance speech, hisappreciation and gratitude to theGovernment of India, the StateGovernments as well as all otherGovernment institutions, includingCommodity Boards, all financialinstitutions who support agriculturallending and extension work and allother service providers, who havehelped AIC to make the weatherbased scheme a great success.He placed on record the committedservice rendered by the employeesof the company, which has atradition of generating innovativeproducts in its short history of thecompany since thecommencement of its business in2002.

INCREASING INSURANCELITERACY AND CREATINGAWARENESSAIC is using several marketstrategies for achieving market

deepening like moving from non-actuarial to actuarial premiumregime, from being only animplementing agency for thegovernment scheme to designingand marketing own product range,broadening customer base fromloanee to include non-loanees inaddition to:o AIC is presently using

insurance intermediaries likecorporate agents and insurancebrokers for marketing weatherinsurance products, in additionto rural banking network

o AIC has also enlisted microinsurance agents like NGOs formarketing its products from2007-08 onwards

o AIC has requested IRDA topermit use of corporate entitiesworking at grass-root level inagriculture and rural areas towork as 'channel partners'under referral arrangement formarketing weather insuranceproducts

As on date the major challengebefore AIC is to overcome the issue

COMPANY’S FINANCIAL PERFORMANCENational Agricultural Insurance Scheme( NAIS)

Year No. of Sum Insured Gross Premium Claims No. ofFarmers (Rs. In Lakh) (Rs. In Lakh) (Rs. In Lakh) BeneficiaryInsured Farmers

2003-04 1,23,92,117 11,16,362 34,739 1,14,974 38,10,394

2004-05 1,62,18,149 16,94,482 53,479 1,19,875 34,47,522

2005-06 1,67,22,357 18,59,076 55,477 1,39,825 36,46,732

2006-07 1,79,12,030 21,30,146 61,017 2,29,001 45,20,954

2007-08 1,84,42,577 24,47,419 68,302 1,71,120 31,49,085

2008-09* 1,91,34,859 26,63,012 80,203 3,19,796 47,66,747(provisional)


'lack of crop insurance awareness'amongst farmers and secondlyincreasing the variety of products.To overcome this AIC is focusingon improving market penetration-through further improving thedistribution channels of FinancialInstitutions, Brokers and Micro-insurance agents.

INNOVATIVE STEPS TAKEN BYAICUtilization of Satellite Imagery &other technologies in CropInsuranceA Memorandum of Understandinghas been signed between AIC andDepartment of Science andTechnology (DST) under facilitationfrom Planning Commission andMinistry of Agriculture (GoI) for aproject to examine the feasibility ofusing the Remote Sensing & GIStechnologies in crop insurance.Initially, the Project would coverKharif 2009 and Rabi 2009-10season.Under the project, the DST usingRemote Sensing & GIStechnologies shall provide to theInsurance Company the followinginformation covering both Kharif &Rabi seasons:(a) Certified output with respect to

crop health at sub-district level(up to village level) at regularintervals for the identified

locations & crops;(b) Certified output with respect to

crop acreage and yieldestimates at village / cluster ofvillages within a month from thenormal harvesting period for theidentified locations & crops;

(c) Certified output on theoccurrence of non-parametricweather phenomenon likehailstorm, thunderstorm, etc.,in terms of occurrence, extent& magnitude, within threeworking days (72 hours) fromoccurrence:

(d) Certified Surface temperaturedata, daily rainfall data and SoilMoisture for the selectedlocations; and

(e) Any other service mutuallyagreed between the two partiesin writing.

The above data will also be utilizedto facilitate decision making onmodified NAIS. For year 2009-10,22 districts (from four States UP,Rajashan, Karnataka and Bihar)have been selected under thisproject:For 2009-10, the States and Cropschosen under (a) & (b) above are:(i) Uttar Pradesh: Kharif season -

Rice and Maize; Rabi season -Wheat, Mustard, Chickpea,and Potato [Districts - Basti,Gorakhpur, Maharajganj,Kushinagar, and Deoria].

(ii) Rajasthan: Kharif season -Guar (Cluster bean), Bajra(Pearl millet), and Maize; Rabiseason - Wheat, Mustard, andChickpea [Districts - for Kharif:Churu, Hanumangarh, andJhunjhunu, and for Rabi: Alwar,Ganganagr, and Sikar].

(iii) Karnataka: Kharif season -Rice, Ragi, Groundnut, Cottonand Arhar (Pigeonpea)[Districts - Belgaum, Dharwad,Gadag, Koppal, Haveri, andBagalkot].

(iv) Bihar: Kharif season - Rice, andMaize; Rabi season - Wheat,Mustard, and Chickpea[Districts - Samastipur,Begusarai, Darbhanga,Munger, and Khagaria].

THE WAY FORWARD FOR AICAND CROP INSURANCEThe Research and Developmentwing of AIC is actively involved incontinuous innovations incustomizing of existing products tomeet the requirements of variedsegments of the different agro-climatic zones of the country,besides designing and developingtailor made innovative insuranceproducts.By the percentage of population,India is still an agricultural countryand the agricultural economy mustbecome fully resilient andsustainable to achieve all roundprogress. In this scenario, thecontainment of risks occupies anever increasing role, as this onlywill turn our farmers into prosperousagricultural entrepreneurs.Therefore all farm initiatives needrisk containment steps, the maincomponent of which will beinsurance.AIC has been formed at the initiativeof the Government to ensure thatthe risks in the crop sector areadequately addressed and everyagriculturist is given an opportunityto choose a risk containmentinsurance product of his/her choice.It is our endeavour to reach thisobjective in the near future.

CMD, Agriculture Insurance CompanyOf India Limited


Emerging AreasEmerging AreasEmerging AreasEmerging AreasEmerging Areas


S. Name of the Area under % of total Number ofNo. Country organic agricultural organic farms

agriculture(ha) land1. Australia 12294290 2.8 15502. China 2300000 0.4 16003. Argentina 2220489 1.7 14864. USA (2005) 1620351 0.5 84935. Italy 1148162 9.0 451156. Uruguay 930965 6.1 6307. Spain 926390 3.7 172148. Brazil 880000 0.3 150009. Germany 825539 4.8 1755710. UK 604571 3.8 448511. Canada 604404 0.9 357112. France 552824 2.0 1164013. India 528171 0.3 44926

World total 30418261 0.65 718744

Source: SOEL-Survey, 2008

Table 1: Land area of major countries under organic agriculture

Organic farming is one among thebroad spectrum of production meth-ods that are supportive of the envi-ronment. Organic production sys-tems are based on specific stan-dards precisely formulated for foodproduction and aim at achievingagro ecosystems, which are so-cially and ecologically sustainable.It is based on minimizing the useof external inputs through use of on-farm resources efficiently comparedto intensive agriculture involving the

certain guidelines for the produc-tion, processing, labelling and mar-keting of organically produced foodswith a view to facilitate trade andprevent misleading claims.Codex Alimentarius Commissiondefines “organic agriculture as ho-listic food production managementsystem, which promotes and en-hances agro-ecosystem health, in-cluding biodiversity, biologicalcycles and soil biological activity.It emphasizes the use of manage-

chanical methods, as opposed tousing synthetic materials, to fulfillany specific function within the sys-tem” (FAO, 1999).

Status of organic farming in theworldBased on the global survey onorganic farming carried out 2007/2008 by the Research Institute ofOrganic Agriculture (FiBL), theInternational Federation of OrganicAgriculture Movements (IFOAM)and Foundation Ecology &Agriculture (SOEL), Organicagriculture is developing rapidly andis now practiced in more than 130countries of the world. Its share ofagricultural land and farmscontinues to grow in manycountries. According to the latestsurvey on global organic farming,30.4 million hectares ofagricultural land are managed

Prospects of Organic Farming in IndiaDr A Subba Rao1 and Dr P Ramesh2

Dr A Subba Rao

use of synthetic fertilizers and pes-ticides.“Organic” in organic agriculture isa labeling term that denotes prod-ucts that have been produced in ac-cordance with certain standardsduring food production, handling,processing and marketing stagesand certified by a duly constitutedcertification body or authority. Theorganic label is therefore a processclaim rather than a product claim.To promote organic agriculture andto ensure fair practices in interna-tional trade of organic food, theCodex Alimentarius Commission,a joint body of FAO/WHO framed

ment practicesin preferenceto the use ofoff-farm inputs,taking into ac-count that re-gional condi-tions requirel o c a l l yadapted sys-tems. This isaccomplishedby using,where pos-sible, agro-nomic, biologi-cal and me-

Figure 1: Distribution of the organic land by continent 2006(Source: Willer 2008)


organically at the end of 2006. Thisconstitutes a growth of 1.8 millionhectares compared to 2005.Additionally, according to thissurvey, there are more than 30million hectares of wild collectionareas.Oceania has the largest share oforganic agricultural land, followedby Europe and Latin America.Currently, the country with thelargest organic area is Australia(more than 12 million hectares). Theproportion of organically comparedto conventionally managed land,however, is the highest in Oceaniaand in Europe. In the EuropeanUnion (EU 27) 4% of the land isunder organic management. Mostproducers are in Latin America.Global demand for organic productsremains robust, with salesincreasing by over five billion USDollars a year. Organic Monitorestimates international sales tohave reached 38.6 billion USDollars in 2006, double that of 2000,when sales were at 18 billion USDollars. Consumer demand fororganic products is concentrated inNorth America and Europe; thesetwo regions comprise 97% of globalrevenues. Asia, Latin America andAustralasia are important producersand exporters of organic foods

Status of organic farming inIndiaIn India about 3, 39,113 hectares

area is under certified organic farm-ing (this includes wild herb collec-tion area of MP and UP) with about1,41,904 numbers of farmers en-gaged in organic farming.The Indian organic farming indus-try is estimated at US $ 78 millionand is almost entirely export ori-ented. According to APEDA (2008),a nodal agency involved in promot-ing Indian organic agriculture, about5,85,970 tonnes of organic productswith a worth of 301 million rupeesare being exported from India. Grow-ing awareness, increasing marketdemand, increasing inclination offarmers to go organic and growinginstitutional support have resultedin to more than 200 % growth incertified area during the last two

years.

Significance of organicagriculture for Indian farmersIn the Indian context, organicfarming can be significant in twodistinct ways:1. To increase the efficiency andsustainability of production:Organic farming can help to reduceproduction cost (especially wherelabour is cheap compared to inputcosts) and to increase or stabilizeyields on marginal soils. This isespecially relevant for small holdersin marginal areas where GreenRevolution agriculture has lead toa depletion of soil fertility and to highdebts because of increase in inputcosts.2. To increase product value: Inareas where farmers have accessto established organic marketswithin the country or abroad,products can achieve a higher pricecompared to the conventionalmarkets. Especially in the trend ofdecreasing prices for agriculturalproducts, this can be an importantway to stabilize or even increaseincomes.

There are several doubts in theminds of not only farmers but alsoscientists whether it is possible tosupply the minimum required nutri-ents to crops through organicsources alone and even if it is pos-

Status as per 2006-07 records

1. Total Production 585970 M.T.

2. Total quantity exported 19456 M. T.

3. Value of total export Rs. 30124 lakhs

4. Total area under certified cultivation 3, 39,113 Ha. (This includes wildherb collection area of MP & UP

5. Number of farmers 1,41,904

6. Export value 78 Million USD

7. Percent of export 4

8. Percent domestic consumption 10

9. Potential share 5 -6 %

10. Anticipated by 2010 10 – 12 %

Source: APEDA, 2008

Table 2: Present status of organic farming in India as per NationalProgramme for Organic Production (NPOP)


sible how are we going to mobilizethat much of organic matter. At thisjuncture, it is neither advisable norfeasible to recommend the switchover from fertilizer use to organicmanure under all agro-ecosystems.Presently only 30 per cent of ourtotal cultivable areas have irrigationfacilities where agro-chemicals useis higher compared to rainfedzones. It is in the rainfed regionsthat ingenuity and efforts are re-quired to increase crop productiv-ity and farm production despite ofrecurrence of environmental con-straints of drought and water scar-city.

The basic requirement in organicfarming is to increase input use ef-ficiency at each step of farm op-eration. This is achieved partlythrough reducing losses and partlythrough adoption of new technolo-gies for enrichment of nutrient con-tent in manures. Technologies toenrich the nutrient supply potentialfrom manures including farm yardmanure three to four times are be-ing widely used at organic farms.According to a conservative esti-mate around 600 to 700 milliontonnes of agricultural waste is avail-able in the country every year, butmost of it is not used properly orput to other uses. We must con-vert our filth/waste into wealth bymobilizing all the biomass in ruraland urban areas into bioenergy tosupply required nutrients to ourstarved soil and fuel to farmers. In-

dia produces about 1800 mt of ani-mal dung per annum. Even if two-third of the dung is used for biogasgeneration, it is expected to yieldbiogas not less than 120 m m3 perday. In addition the manure pro-duced would be about 440 mt peryear, which is equivalent to 2.90 mtN, 2.75 mt P2O5 and 1.89 mt K2O.

Organic farm and food produc-tion systems are quite distinct fromconventional farm in terms of nutri-ent management strategies. Or-ganic systems adopt managementoptions which primary aim to de-velop whole farm like a living organ-ism with balanced growth in bothcrops and livestock holding. Thusnutrient cycle is closed as far aspossible. Only the nutrients in theform of food are exported out of thefarm. Crop residues burning is pro-hibited so is the unscientific stor-

age of animal wastes and its appli-cation in fields. It is therefore, con-sidered as more environmentalfriendly and sustainable than theconventional system. Farm conver-sion from high input chemical basedsystem to organic system is de-signed after undertaking a constraintanalysis for the farm with primaryaim to take advantages of local con-ditions and their interactions withfarm activities, climate, soil and en-vironment so as to achieve as far aspossible, the closed nutrient cycleswith less dependence on off-farminputs. As far as possible it impliesthat only nutrients leaving the farmunit are those that used for humanconsumption.

Crop rotations and varieties areselected to suit local conditionshaving potential to sufficiently bal-ance the crops nitrogen demand.Requirements for other nutrientslike phosphorus, sulphur and mi-cronutrients are met with local, pref-erably renewable resources. Or-ganic agriculture is therefore oftentermed as knowledge basedrather than input based agricul-ture. Furthermore, organic farmsaim to optimize the crop productiv-ity under given set of farm condi-tions. This is in contrast to theconcept of yield maximizationthrough the intensive use of agro-chemicals, irrigation water andother off farm inputs. There areample evidences to show that agro-chemical based high input agricul-ture is not sustainable for long pe-riod due to gradual decline in factor

Type Products

Commodity Tea, Coffee, Rice, wheat

Spices Cardamom, black pepper, white pepper, ginger, turmeric,vanilla, mustard, tamarind, clove, cinnamon, nutmeg,mace, chilli

Pulses Red gram, black gram

Fruits Mango, banana, pineapple, passion fruit, sugarcane,orange, cashew nut, walnut

Vegetables Okra, brinjal, garlic, onion, tomato, potato

Oil seeds Sesame, castor, sunflower

Others Cotton, herbal extracts

Source: Garibay and Jyoti ( 2003)

Table 3: Major products produced in India by organic farming


productivity with adverse impact onsoil health, environment and qual-ity of the produce.

Organic agriculture and yieldYields relative to comparable

conventional systems are directlyrelated to the intensity of farmingof the prevailing conventional sys-tems. This is not only the case forcomparison between regions, butalso between crops within a region,and for individual crops over time.An over-simplification of the impactof conversion to organic agricultureon yield indicates that:� In intensive farming system ar-

eas, organic agriculture maydecrease yield; the range de-pends on the intensity of exter-nal input use before conversion.

� In the so-called green revolutionareas (irrigated lands), conver-sion to organic agriculture usu-ally leads to almost identicalyields, provided sufficient or-ganic source of nutrients aremobilized for use.

� In traditional rain-fed agriculture(with low external inputs), or-ganic agriculture has shownthe potential to increase yields.

A number of studies have shownthat under drought conditions, cropsin organic agriculture systems pro-duce significantly higher yields thancomparable conventional agriculturalcrops, often out-yielding conven-tional crops by 7–90%. Others haveshown that organic systems providestability to crop production. A sur-vey of 208 projects in developingtropical countries, in which contem-porary organic practices were intro-duced, showed average yield in-creases of 5–10% in irrigated cropsand 50–100% in rainfed crops.

The so-called organic transitioneffect, in which a yield decline inthe first 1–4 years of transition toorganic agriculture, followed by ayield increase when soils have de-veloped adequate biological activ-ity, has not been borne out in somereviews of yield comparison stud-ies. Trials conducted on organiccotton at Nagpur indicated that af-ter the third year, the organic plot,which did not receive fertilizers and

insecticides, produced as muchcotton as that cultivated with them.Similarly, studies conducted at In-dian Institute of Soil Science,Bhopal, Madhya Pradesh and inPunjab clearly indicated that or-ganic farming with adequate organicinputs gave higher or equal yieldsof different cropping systems com-pared to chemical farming after aninitial period of three years.

ConclusionsOnly 30% of India’s total culti-

vable area is covered with fertiliz-ers where irrigation facilities areavailable and in the remaining 70%of arable land, which is mainly rain-fed, negligible amount of fertilizersis being used. Farmers in these ar-eas often use organic manure as asource of nutrients that are readilyavailable either in their own farm orin their locality. The northeasternregion of India provides consider-able opportunity for organic farm-ing due to least utilization of chemi-cal inputs. It is estimated that 18million hectare of such land is avail-able in the NE, which can be ex-ploited for organic production. Withthe sizable acreage under naturallyorganic/default organic cultivation,India has tremendous potential togrow crops organically and emergeas a major supplier of organic prod-ucts in the world’s organic market.The report of the Task Force onOrganic Farming appointed by theGovernment of India also observedthat in vast areas of the country,where limited amount of chemicals

is used and have low productivity,could be exploited as potential ar-eas for organic agriculture. Arrest-ing the decline of soil organic mat-ter is the most potent weapon infighting against unabated soil deg-radation and imperiledsustainability of agriculture in tropi-cal regions of India, particularlythose under the influence of arid andsemi-arid climate, hills and moun-tain regions. Application of organicmanure is the only option to improvethe soil organic carbon for suste-nance of soil quality and future ag-ricultural productivity. It is estimatedthat around 700 mt of agriculturalwaste is available in the countryevery year, which can effectively berecycled, composted and used asmanure. There are several alterna-tives for supply of soil nutrients fromorganic sources like enriched com-posts, vermicompost, biofertilizers,etc. Technologies have been devel-oped to produce large quantities ofnutrient-rich manures/composts.There are specific biofertilizers forcereals, millets, pulses and oil-seeds that offer a great scope tofurther reduce the gap between nu-trient demand and supply. There isno doubt that organic agriculture isin many ways a preferable patternfor developing agriculture, espe-cially in dry lands, tribal areas andlow input agricultural and horticul-tural systems for improved produc-tivity and long term sustainability.

1Director, 2Principal Scientist, Indian

Institute of Soil Science, Bhopal


The Agriculture sector is gearing it-self to make optimal use of the newinformation and communication tech-nologies. At the Government of Indialevels, a number of important initia-tives have been taken to provideICT(Information and CommunicationTechnologies) Hardware and con-nectivity to all organizations involvedin Agricultural Education, research,development and dissemination. Si-multaneously, Agricultural content de-velopment initiatives have been takenup by Ministry of Agriculture, in col-laboration with State Departments ofAgriculture and National InformaticsCentre (NIC), to provide Agriculturalinformation including crop produc-tion, protection, GovernmentSchemes and marketing informationof various agricultural commoditiesto the farming community. Anothercontent-creation and aggregation ini-tiative is being supported by IndianCouncil of Agricultural Research(ICAR), under its World Bank aidedproject – National Agricultural Inno-vations Project (NAIP), wherein theLeading ICT institutions like IITKanpur, IIT Mumbai, IITKM, Kozikode

and International Crop Research In-stitute for Semi-Arid Tropics(ICRISAT) have been roped in toguide National Agricultural ResearchSystem to design, develop andimplement Knowledge ManagementSystems (KMS) in Agriculture.

ICT or Information and Commu-nications Technology in simpleterms, are defined as the basket oftechnologies which assist or supportin storage, processing of Data/ Infor-mation, or in dissemination/ commu-nication of Data/ Information, or both.ICT thus includes technologies suchas desktop and laptop computers,software, peripherals and connec-tions to the Internet that are intendedto fulfill information processing andcommunications functions. ICT is anumbrella term that includes any com-munication device or application, en-compassing: radio, television, cellu-lar phones, computer and networkhardware and software, satellite sys-tems and so on, as well as the vari-ous services and applications asso-ciated with them, such asvideoconferencing and distancelearning.

The importance of ICT lies, lessin the technology itself, than in itsability to create greater access to in-formation and communicationamong the hitherto un-reached ge-ographies and populations. The“Grameen Phone” initiative inBangladesh, Kothamale RadioProject in Sri Lanka, Kisan Call Cen-tres (KCC) and ITC’s e-Chaupals inIndia, are examples of such innova-tions.

ICTs are most natural allies to fa-cilitate the outreach of AgriculturalExtension system in the country. De-spite a large, well-educated, well-trained and well-organized Agricul-tural extension manpower, around60% of farmers in our country still re-main un-reached, not served by anyextension agency or functionary. Ofthe 40%, who have some access toAgricultural Information, the majorsources of this information are Ra-dio and Television. The telephonehas just started to make its presencefelt on this scenario. During last 5years of its operations, the Kisan CallCentres (KCC) helpline- 1551, hasregistered over 3.4 million (34 Lakh)calls. Internet-supported Information-Kiosks known as Community Infor-mation Centres (CICs) in some state,Village Knowledge Centres (VKCs)and Common Service Centres(CSCs) in some other states are alsoserving the farming community, inmany parts of the country. Hence ICTsare highly relevant for Agricultural Ex-tension scientists, researchers, func-tionaries and organizations.

Agriculture and Indian Economy:The Agriculture sector was, is and

will remain an important sector of In-dian economy, for foreseeable future.Although its contribution to Gross

ICTs in Agriculture

The Road Ahead Dr. V.P. Sharma


Domestic Product has come downto less than 17%, Agriculture is stillthe primary source of livelihood forover 230 million farmers and agricul-tural labour. In total, Agriculture stillsupports over 600 million people and52% of the work force even today. Theagriculture sector in India has beensuccessful in keeping pace with therising food demand of a growingpopulation, which has crossed theone billion mark. The food grain pro-duction more than quadrupled sinceearly 1950s from 51 million tones toover 230 million tones in 2007-08,while the population nearly tripledfrom 350 million to one billion duringthe same period. The green revolu-tion has been the corner-stone ofIndia’s agricultural achievement,transforming the country from one offood deficiency to self-sufficiency. Thegreen revolution however remainedrestricted to the well-endowed, irri-gated areas of the country. Of late,deceleration in production and factorproductivity growth in some of themajor irrigated production systemsespecially in the north and north-westregions have been recorded. Poten-tially high production areas (easternand central states) are still laggingbehind in productivity increases.

Public research and extensionplayed a major role in bringing aboutgreen revolution. In the post greenrevolution era, however, extensionfaces important challenges in the ar-eas of relevance, accountability andsustainability. It is becoming increas-ingly evident that public extension byitself can no longer respond to themultifarious demands of farmingsystems. The Policy Framework forAgricultural Extension (PFAE) of Gov-ernment of India envisages a crucialrole for agricultural extension. For thisthe extension agencies will have toplay a more broad based role andthe extension workers will need to ex-ercise a more proactive and partici-patory role, serve as knowledgeagents, initiating and facilitating mu-tually meaningful and equitableknowledge based transactionsamong agricultural researchers,trainers and primary producers.

Changing Information Needs of theFarmers:

Today’s farmer requires more in-formation on marketing prices innearby markets, marketing intelli-gence and precision farming, ratherthan on package of practices for com-mon crops. Farmers have increas-ingly begun to perceive packaging,processing, storing and marketingrather than production as the majorconstraint to enhancing farm in-comes. With major thrust of exten-sion agencies on production tech-niques only, post-harvest technolo-gies, marketing extension so far hasnot received the required attention.The farmers today need informationon Government schemes, subsidies,Credit facilities (including source,terms and conditions), crop Insur-ance products, Market prices (mandiwise), trends, stocks, post-harvesttechnology, availability of farm equip-ment (for purchase and hire), be-sides variety of seeds, pesticidesand fertilizers. All this information istime and quality critical. It has also tomatch geographical (agro-ecologi-cal) requirements. And hence the in-formation has to be authenticated bythe concerned KVK/ State AgriculturalUniversity/ Department of Agricultureon regular basis. There is thus, aneed for reappraisal of the capacityof existing agricultural extension sys-tems to effectively address the con-temporary and future needs of thefarming community.

Agricultural Information DeliverySystems:

There is a huge gap in Agricul-tural Information dissemination sys-tem. The extension professionals ofpublic extension system are hardlyequipped to address this issue, andhence, there is a strong need for al-ternative channels of informationfrom national and international mar-kets, agri-produce companies (forseeds, fertilizers and pesticides) andalso on processing and packagingpractices to meet the requirementsof agri-retail chains. The knowledgeabsorption capacity of the farmersneeds to be upgraded, so that theycan take more informed decisions.ICT is seen as an important meansof achieving such a transformation.When used as a broad tool for pro-viding local farming communities withscientific knowledge, ICT heralds theformation of knowledge societies inthe rural areas of the developingworld. However, this can only berealised when knowledge and Infor-mation are effectively harvested foroverall agricultural development. Thedevelopment of precision farming incountries of the North emphasizesknowledge-intensity; hence the newextension approach in the country willhave to be recast to take advantageof knowledge availability to achievemultiple goals: of income, food, jobs,etc.

ICT and Agricultural Information Dis-semination:


With appropriate use of ICT tools,the outreach of ICAR system andSAUs can increase manifold. It canbring the scientists in direct touchwith the farmers on daily basis. Theavailability of mobile phones in ruralhinterlands has brought revolution infarmer-scientist interactions inMaharashtra, with the farmers gettingdaily alerts through SMS (Short Mes-saging Service) on crop prices,weather alerts, etc. It can bring newinformation services to rural areaswhere farmers, as users, will havemuch greater control than before overcurrent information channels. Accessto such new information sources is acrucial requirement for the sustain-able development of the farming sys-tems. Broad basing Agricultural ex-tension activities; developing farmingsystem research and extension; hav-ing location-specific modules of re-search and extension; and promot-ing market extension, sustainableAgricultural development, participa-tory research, etc. are some of thenumerous areas where ICTs can playan important role.Extension Official as KnowledgeWorker:

With the use of ICTs and tools likeInternet and World Wide Web, theExtension Workers can be connectedto the best of scientists in agriculturaluniversities and research stations,spread across the country. ICTs can

enable the extension workers togather, store, retrieve and dissemi-nate a broad range of informationneeded by farmers, thus transform-ing them from extension workersinto knowledge workers. The emer-gence of such knowledge workerswill result in the realization of themuch talked about bottom-up, de-mand driven technology generation,assessment, refinement and trans-fer. The first step for the ExtensionOfficials in this direction will be togrow from narrow mindset of “Trans-ferring the Technology packages” to“Sharing the Knowledge and Infor-mation packages”. The AgriculturalExtension as a profession has totransform its outlook from definitionof Agricultural Extension as a pro-cess of “Technology Transfer” to aprocess of “facilitating InformationSharing and Building AgriculturalKnowledge Networks”. The Agricul-ture, as a sector has to shift from pro-duction-focused/ input-driven growthparadigm to a knowledge based /demand-driven sustainable enter-prise.Applications of ICT in AgriculturalExtension: Current Status:

There are a number of Agricul-tural Information Delivery PilotProjects in the country, where somestate Departments of Agriculture, Dis-trict Administration or SAU and insome cases NGOs have taken the

lead to demonstrate the efficacy ofproviding “on-line” Agricultural Infor-mation to the farmers. These in-clude: Information Villages inPondicherry (project by MSSRF,Chennai, since 2000), Gyandoot- aproject of District AdministrationDhar, M.P., Warna Wired Villages inKolhapur and Sangli District ofMaharastra by NIC, Delhi, WarnaCooperative Society and Govt. ofMaharastra, etc. Some of the suc-cessful and effective projects include:

� On-Line services for informationon each crop (crop-manage-ment-right form seed availabil-ity, soil preparation to harvesting,post-harvesting and packaging),from known and nearest authen-tic sources like–the concernedSAUs(Example – The AgrisnetPortal of Department of Agricul-ture, Government of AndhraPradesh www.apagrisnet.gov.in)

� On-Line interaction facility to in-teract with nearest KVK, SAU,ICAR Research Station and theDepartments of Agriculture, Hor-ticulture, Fisheries, Animal Hus-bandry etc. for advice on currentschemes, projects,varieties(KVK Babhaleswar, Dis-trict Ahmednagar, Maharastra);

� Question-Answer service foreach District in the country (Ex-ample aAQUA Almost All Ques-tions Answered portal developedby IIT Mumbai and being usedby KVK Baramati, UAS Dharwadand its KVKs, G.B.P.U.A.T.Pantnagar and its KVKs http://aaqua.persistent.co.in) ;

� On-line monitoring and Informa-tion Sharing on All AgriculturalDevelopment Projects in thecountry (including their financialallocations and progress oneach head, district wise)( Ex-ample : Agri-Clinic and Agri-Busi-ness Centre, ACABC Website ofMANAGE www.agriclinics.net );

� On-line sharing of District Agri-culture Development Plans (e.g.Strategic Research and Exten-sion Plans, SREPs preparedunder National Agricultural Tech-


nology Project (NATP) in 28 dis-trict during 1998-2004);

� On-Line Information on Marketprices of all commodities atmandal, Block (taluka), District,State and major national marketlevel (Examplewww.agmarknet.nic.in );

� On-Line Weather forecastingand its impact on major crops(state wise, district wise) onweekly basis, including earlywarning systems (Examplewww.agmarknet.nic.in );

The Road Ahead:The National Seminar on Agricul-

tural Extension organized during Feb-ruary 27-28, 2009 (NSAE, 2009) hasbrought out a number very importantrecommendation to deploy ICTs toenhance the efficacy of ExtensionSystem. These recommendationsinclude:

� Develop national database onpests and diseases

� Facilitate greater access of tech-nologies to the resource poorfarmers;

� Develop artificial intelligencebased expert systems

� Develop Knowledge creatingnetworks and trigger innovationsfor sustainable agriculture;

� ICT should be promoted forknowledge and informationabout technology; innovativefarm technologies; capacitybuilding of farmers to adapt tech-nology, input/credit; post harvest

technologies and marketingservices;

� Government agencies shouldplay a bigger role in both net-working and content develop-ment at the district, state and na-tional level;

� Connectivity, Content andSustainability should receiveconcurrent attention;

� The information provided throughICT should be demand drivenand should be relevant to theneeds of farming community;

� Community Radio station for ag-riculture and rural developmentshould be promoted in Public –Private Partnership model;

� Community radio, Call centersand Mass media need to be har-nessed for wider disseminationof best practices;

� Village Knowledge Centers andonline databases in local lan-guages should be established.Liberal access should be en-sured to the vast pool of farmknowledge to all players in pub-lic and private domain;

� Map knowledge of farmersthrough Village Knowledge Man-agement Systems;

� Knowledge management, mar-ket intelligence and post harvestmanagement need to be inte-

grated with the extension sys-tem;

� Farm journalism should be pro-moted by suitable arrangementfor documenting success sto-ries and best practices;

� To exploit ICT, extension workersrequire more training

Conclusion:ICT usage in Agriculture has got

good start in last ten years. A num-ber of Pilot projects have succeededto reach a stage of Roll-out. ICT con-nectivity has reached all districts andBlocks in the country. Telephonedensity has also crossed 35% mark.Common Service Centres (CSCs)are also being rolled-out country-wide under PPP mode. Over 5000Agric-clinic Agri-business centreshave been established by trainedagri-graduates. Thus, the deliverymechanism for “Agricultural Infor-mation” content is almost ready. Theonly missing link is the “Content”.We need to take up this task on ur-gent basis.

Director-IT, Documentation andPublications, MANAGE, Hyderabad


ORGANIC RICE IN INDIAState of the art and future scenario1DrTK Adhya and 2 Dr A Ghosh

Indian agriculture, as of today, ad-vances from traditional wisdom tothe future conviction of food, nutri-tional and environmental security.The golden era of green revolutionhas witnessed India’s agriculturalachievement transforming thecountry from the stage of food defi-ciency to self-sufficiency. Achiev-ing that goal required intensive ag-ricultural management, which hasresulted in an indiscriminate andexcessive use of chemicals. Thealarming proximity of pesticides andagrochemicals to the intensive ricefarming emerges as a great con-cern posing serious threats tothe agriculture today. Concomi-tant with the achievement offood security, the post greenrevolution era impacted ad-versely the health and environ-mental security, in contrast.This realization may pave theway of reviving the age old cul-ture of organic agriculture.Since recent past, the prospectof organic rice farming has gotmomentum in cognizance withits considerable demand glo-bally.

Organic agricultureThe global market for organic foodis worth $37 billion and is growingfast. The United States emerged asthe largest importer of organic foods,followed by the European Union.Now, the “organic culture” is spread-ing globally. Though organic agri-culture accounts for a negligibleportion of the country’s total farmproduce, there is a great demandfor it in the international market. Un-fortunately, despite having its po-tential, India is yet to derive muchbenefit from exporting organicfoods. India’s export of organic foodis worth hardly Rs.90 crores.

Organic riceRice farming in our country is tra-ditionally ‘by default’ organic in na-ture and farmers were used to ap-ply organics in rice cultivation ineither of the forms & ways, till themiddle of the last century. Ironically,majority of the rice farmers are poorand marginal and dilemmas domi-nate the life of this poor rice farm-ers. Most often, inconsistent gov-ernment policies create these di-lemmas that sometimes prove di-sastrous. Of late, these farmers arebeing persuaded to switch over tothe age-old organic rice farming and

thus gradually phase out the con-sumption of chemical fertilizers. Infact, it is again a policy-driven di-lemma. Organic food is undoubt-edly the best choice for humanhealth and nutritional security. Incontrasts, it is not at all an easytask for the performance-orientedfarm sector venturing the age oldpractice for its revival, until it be-comes sensitive to the ecologicalcrises ahead.

Area & ProductionEstimation of area and productionof organically grown crops is verydifficult task as there is no suchcentral agency for collection of theinformation and their systematic

documentation. However, NationalProgram for Organic Production(NPOP), APEDA has reported anarea of 25,08,826 ha under organicagriculture with a production of

14,000 tons, of which organicrice contributes around some24%.

Export potentialOur country exports 31 or-ganic products. It is estimatedthat around 85% of the totalorganic production in ourcountry is exported. Although,global market for organic foodis expanding very fast, thedemand for organic rice doesnot commensurate with thedemands for other high value

crops. In this context, the views ofNAAS are worth-mentioned. In oneof its policy paper, NASS has men-tioned “ To begin with, the practiceof organic farming should be for lowvolume, high value crops likespices, medicinal plants, fruits andvegetables.(Organic Farming: Ap-proaches and Possibilities in thecontext of Indian Agriculture, PolicyPaper 30,NAAS, February 2005).Obviously, so far as Indian agricul-tural scenario is concerned, organicrice cultivation is yet to be consid-ered one of the thrust areas of itsresearch agenda. The possible rea-son as rightly stated by the AgroDivision of Export- Import Bank(EXIM Bank Agro) is “In India, thedemand for organic rice is limited

DrTK Adhya


possibly on account of lack ofawareness and lack of market dis-tribution channel”.

Myths and facts in organic ricecultureMultifarious advantages are therewhile growing rice organically. Still,some misconception exists, whichneeds to be clarified.1. Recent research does not wit-

ness any proven environmen-tal benefits in organic rice sys-tem when the environmentalimpact is expressed on a perton rice-produced basis.

2. Just one or two years of apply-ing organic materials do notnecessarily bring significantincrease in soil organic mattercontent.

3. Organic fertilizer is not the solefactor in improving the qualityof the food product, such asincreased antioxidant content.

4. Unlike chemical pesticides, useof biocides or botanicals re-quires larger quantity of rawmaterials for adequate availabil-ity of active ingredient, whichis often found unfeasible. Onthe other hand, marketableproducts more often prove tobe spurious and not conform-ing to the organic norms.

Problems aheadThere are some inherent problemshindering desirable expansion of or-ganic rice cultivation in our coun-try. In one hand it includes re-searches in right perspective on theother hand, formulation as wellproper execution of discrete govern-ment policy is missing.

POLICY1. Local market de-manding organic rice isnot lucrative hence produc-tion scenario could be con-nected to its export poten-tials. Appropriate strategyfor marketing of organicrice linking authenticatedgrowers to the global mar-ket would encourage farm-ers to grow organic rice.2. Certification of or-

ganic rice for export requiresstrict vigilance else export maysuffer a set back as happenedin the recent past when Finlandrejected organic rice consign-ment from our country due tocontamination of methyl bro-mide.

3. A short-term yield reduction,common in organic rice pro-duction system, not only re-quires premium prices but gov-ernment subsidies too, tomaintain organic cultivationeconomically viable on a largescale.

4. Not only certifying the endproduct, i.e, grain, the organicinputs as well as entire produc-tion system needs to be su-pervised and certified. Be-cause, organic rice cultivationis also a ‘process certification’than ‘products certification’alone.

RESEARCH1. HYV rice developed so far are

mostly responsive to high in-puts and intensive manage-ment. Contrary to that, organicrice cultivation is an environ-mentally sustainable manage-ment practice. Thus, it requiresdevelopment of HYV whichwould respond well to organicmanagement with resistance/tolerance to major pests anddiseases.

2. Under condition of minimumoxygen level (as in flooded ricesoils), applying organic fertiliz-ers may produce organic ac-ids and other toxins harmful tothe plant. Thus, it requiresproper decomposition, prior to

their field application.3. Quality of ‘enriched’ organic

fertilizers available commer-cially should be ensured toavoid contamination from inor-ganic agrochemicals.

4. Usually, production would beless during the initial yearsbefore soil fertility status is builtup sustaining adequate nutri-ents supply. The investmentduring this lag phase in thecourse of producing organicrice needs to be compensated.

5. There is no fixed or stable pro-portion of plant mineral nutri-ents in the sources of organicfertilizers applied in rice. There-fore, prolonged organic prac-tices can result in nutrient im-balances in rice soil, in boththe extremes of deficiency ortoxicity.

ConclusionIt is often said that organic rice cul-tivation per se, would perpetuatefood insecurity and poverty in Asiabecause they are typically lackingessential nutrients and confer few,if any, benefits in terms ofsustainability. In cognizance withthe growing demand for organic ricein the global market, scientist,policy makers and stakeholdersalike need to work hand in hand toresolve the problems of cultivation.It is admitted that mere growingorganic rice alone may not appearto be a profitable enterprise andeven sometimes non-remunerative.Scientists have to develop locationspecific organic rice-based farmingsystems. This would enable thefarmers to recycle residues of bothcrop and animal enterprises andthus can resolve the problems ofgenerating larger quantity of organicnutrient sources within the farm it-self. Nonetheless, this unique ven-ture could help farmers harvestother farm commodities along withrice grown under organic environ-ment in one hand and could fetchgreater benefit in totality.

1Director, 2Pr. Scientist, Central RiceResearch Institute, Cuttack


IntroductionIn the late 1960s, due to increas-

ing population and faced with foodscarcity and security, India usheredin the green revolution. In the follow-ing two decades, India witnessed aboost in agricultural pro-ductivitythanks to the developments in Indianagriculture, includ-ing its scientificand policy direction, and led by emi-nent research-ers and agriculturescientists.

The Green revolution technolo-gies involved high usage of syntheticagrochemicals such as fertilizersand pesticides and adoption of nu-trient- responsive, high-yielding vari-eties of crops. These meas-uresboosted the production output perhectare in most of the cases but it isapparent two decades later that thisincrease in production has sloweddown and in some cases there areindications of decline in growth ofproductivity and production (Source-Planning Com-mission- ‘ApproachPaper to the 11th Five year Plan). Also,the excessive use of pesticides andfertilizers have resulted in far-reach-ing ecological and environmentaldamages viz. drastic decline in soilfertility, lowering water tables and in-creasing toxicity in food products.These results have made a compel-ling case for scientists and policymakers to restructure Indian agricul-ture and production of safe foods.

Increasing consciousness aboutconservation of environment, healthhazards associated with agrochemi-cals and consumers’ preference tosafe and eco-friendly food are themajor factors that lead to the grow-ing interest in alternate forms of foodproduction in the world. Consumersare asking for eco-friendly productsacross the world and India is alsocatching up fast in this trend. Eco-friendliness has various parametersand it has started to go beyond onlysoil, water, air; as it started to addressthe interrelation of society to its en-tire surroundings including ecology,

man, animal, their health and howthey are cared.

These attributes are enshrined asfour cardinal ‘Principles of Or-ganicAgriculture’ by the International Fed-eration of Organic Agri-culture Move-ment, Germany (IFOAM), an umbrellaorganization working closely with theinternational community includingFAO, Codex Elimentarius, EU, USDA,etc. It states that Organic agricul-tureis based on the following “Principlesof Organic Agriculture”(www.ifoam.org)

Development of organicagriculture Worldwide:

Recently, United Na-tions Food and Agricul-tural Organisation (FAO)in its report Organic Agri-culture and Food Securityexplic-itly states that or-ganic agriculture can ad-dress local and globalfood security challenges.The organic sector isflourishing today morethan ever.

The world community is increas-ingly becoming aware of the need topreserve Mother Nature. All over theworld, synthetic/chemical productsare quickly replaced by eco-friendlyorganic products. Organic agricultureis developing rapidly and is now prac-ticed in more than 130 countries ofthe world. Its share of agriculturalland and farms continues to grow inmany countries. Worldwide 30.4 mil-lion hectares of land is cur-rently un-der organic production. The value ofworld trade today is US $ 40 billion,while it was only US $ 18 billion in2000. And the world trade of organicproducts is expected to reach USD100 billion by 2012, as estimated byOrganic Monitor, UK.

Development of organic agriculturein India

Organic farming is not new to In-dian farming community. Several

Organic Agriculture and Markets inOrganic Agriculture and Markets inOrganic Agriculture and Markets inOrganic Agriculture and Markets inOrganic Agriculture and Markets in

IndiaIndiaIndiaIndiaIndia: An updateAn updateAn updateAn updateAn updateforms of organic farming are beingsuccessfully practiced in diverse cli-mates. Among all farming systems,organic farming is gaining wide at-tention among farmers, entrepre-neurs, policy makers and agriculturalscientists for a number of reasons:Organic farming minimizes the de-pendence on chemical inputs (fertil-izers; pesti-cides; herbicides andother agro-chemicals) and thus safe-guards/improves the quality of thenatural resources and the envi-

ronment.Organic systems have been thriv-

ing in various parts of India for 20 to25 years now, but no systemic andinstitutional work had hap-pened un-til 2001. In 2001, the Government ofIndia started the ‘Na-tional Programon Organic Production’ (NPOP). From2005, the International CompetenceCentre for Organic Agriculture (ICCOA:www.iccoa.org) based in Bangalorestarted organizing India’s big-gestmarketing platform, ‘India OrganicTrade fairs’ for organic and relatedeco-friendly products. Since then,India’s organic sector has shownrapid progress.

In 2003 only 73’000 hectares ofcultivated land was certified or-ganic,and by 2007 it touched 538’000 hect-ares. By 2008, this fig-ure was401’000 hectares with another464’000 hectares under con-version– thus a total of 8,65,000 ha is or-ganically managed in In-dia. Thisconstitutes, however, only 0.61 % ofthe total cultivated area of 142 millionhectares.

Manoj Kumar Menon


History of organic farming in India:Milestone list

January 1994: The ‘SevagramDeclaration’ for the promotion of or-ganic agriculture is followed by largenumber of organic practitionersthrough-out India.2001: The Government of Indialaunches the National Programmeon Organic Production (NPOP).2001: India develops its own NationalStandards for Organic Production(NSOP), similar to the IFOAM andother world standards.2001/2002: Establishment of a Na-tional Accreditation Body with the Ag-ricultural & Processed Food ProductsExport Development Authority APEDAas the nodal agency.2001/2002: Organic certified area re-corded at 42’000 hectares2003/2004: Organic certified culti-vated area at 76236 ha (Total areainclude forest areas with wild herbswere 2508826 ha.2005: First ‘India Organic Trade Fair’organized by the International Com-petence Centre for Organic Agricul-ture ICCOA in Bangalore. Since thenit has become an annual event.2005: The organic certified area risesto 76’000 hectares.2006: India’s NSOP acquires the sta-tus of equivalence with the EU andSwiss Standards. India’s accredita-tion system attains equivalence withthe US National OrganicProgramme.2007: The organic certified area risesto 538’171 hectares.2008: The organic certified area risesto 865000 hectares. 12 organic cer-tification agencies are accredited.\2008: The fourth edition of India Or-ganic Trade Fairs are organized in

New Delhi by ICCOA inpartnership with theNational Centre for Or-ganic Farming (NCOF)and APEDA.

Graph 1: Developmentof the organic and in-conversion land areain IndiaSource: FiBL/SOELSurveys, APEDA.Graph: FiBL

Markets:India was exporting organic prod-

ucts to the value of only 730 millionIndian Rupees in 2003 and in 2008-09 this figure touched 4500 millionIndian Rupees constituting almost0.25 % of the organic world market.In parallel, the domestic market fororganic products in India is alsogrowing, and India’s first market sur-vey conducted by the InternationalCompetence Centre for Organic Ag-riculture ICCOA (Rao Kishore et al.)indicates a huge potential of over Rs.1500 crores (Rs. 15 bn) in the eightmajor cities alone. In the com-ingyears. India should target to reach atleast Rs. 4000 crores (Rs. 40 bn)2012 (domestic market and exports),thereby capturing ap-proximately2.5% of the current global market fororganic products.

Domestic markets in India (Nation-wide survey):

ICCOA conducted a market studyin 2006 in the top 8 metros, cov-eringSEC A and SEC B segments of theconsumers, which com-prise about5.3 % of the households. Over 3600consumers among the target groupwere surveyed across four regions

of the country.The market study

estimates the acces-sible market poten-tial for or-ganic foodsin the top 8 metros ofthe country at Rs 562crores, tak-ing intoaccount current pur-chase patterns ofconsumer in modernretail format. It is hy-pothesized that forsome time to comeOrganic foods willcater to the up mar-ket customer

through these formats or dedicatedorganic retail stores. The overall mar-ket potential is esti-mated to bearound Rs.1452 crores, the availabil-ity will however be a function of distri-bution-retail penetration and makingthe product available to the customer.

Biofach India together with India Or-ganic

ICCOA has organized four edi-tions of India Organic trade fairs an-nually since 2005. This fair has be-come one of the biggest events inthis part of the world.

In 2009 the organizers of theBiofach World Organic Trade fair,Nurnberg Messe, Germany enteredinto an MoU with ICCOA for jointly or-ganizing the International Organictrade fairs in India. The first BiofachIndia together with India Organic fairis being organ-ized in Mumbai from18-20 November 2009. Thus Indiabecomes an important destination ofthe organic sector worldwide.

Future projectionsThe area under organic cultivation

is likely to cross the two million hect-are mark by 2012, according to Na-tional Centre for Organic FarmingNCOF under the Union Ministry of Ag-riculture and Inter-national Compe-tence Centre for Organic AgricultureICCOA. This constitutes more thantwo-fold growth from the present865’000 hectares.

The market for organic producefrom and within India is expected togrow six to seven times in the nextfive years. India may reach 40 billionIndian Rupees (Rs. 4000 crores) by2012, thereby reaching about 2.5 %of the current global trade value –� Exports form India reaches

about Rs. 2500 crores.

� Domestic markets within Indiareach about Rs. 1500 crores.


A thought...A thought...A thought...A thought...A thought...


SECOND GREEN REVOLUTION AND

SUSTAINABLE DEVELOPMENTDr KP Agarwal

The country is passing throughacute agrarian crisis. There has beenmarked slowdown in growth rates inthe traditional green revolution statesand bread basket of the country,namely Punjab, Haryana and UttarPradesh. The lower growth rates inthese states which account for about75% and 25% of production of wheatand rice respectively have endan-gered food security in the country.Total Factor Productivity (TFP) grewby 2 percent/ year between 1981 and1990, it became negative during1990-96 in the Indo-gangetic plains,which is spread over the states ofPunjab, Haryana, Uttar Pradesh,Bihar and West Bengal.

Low public investment, soildeterioration, shifts towards cashcrops, mono-cropping, post-har-vest wastes, low value addition,neglecting rainfed agriculture, lackof institutional credit/ crop insur-ance, low price of farm produceand high input cost, lack of alter-native non-agricultural incomeopportunities and poor extensiondelivery are ailing Indian agricul-ture. Other factors contributing tolow performance of the agriculturesector are lack of market informa-tion, poor market infrastructure, smalland scattered land holdings. Further,poor land use practices have re-sulted in high levels of soil erosion,destruction of farm land, loss of veg-etation, reduction in soil fertility of ag-riculture land and other pressures onnatural resources. There are yieldgaps between different regions of thecountry and also between actualyields and the yield potentials that aretechnologically feasible. The yieldgap varies from 40 percent and 100percent respectively. Production canbe increased if this yield gap isbridged.

Most of the farmers in India aresmall and landless and dependupon agriculture for their livelihood.Within the limited scope for area ex-pansion, enhanced productivity, prof-itability and competitiveness would

be the main focus of sustainableagricultural growth in future. In otherwords, it calls for the Indian agricul-ture to shift from resource or inputbased interventions to knowledge orscience based growth.

First Green Revolution TechnologiesFatigued:

Green revolution technologies(high yielding varieties, chemical fer-tilizers, synthetic pesticides, irriga-tion, mechanization, mono-croppingetc.) led to rapid agricultural growth,eliminated famines and achievedfood self sufficiency in 1990s. Thegrowth in agriculture helped reducepoverty from 53% in 1977-78 to about26% in 1990-00. Green revolution

technologies fatigued with passageof time. The gains could not be sus-tained. Slow down in agriculturalgrowth is greatest in green revolu-tion states. There is increasing natu-ral resources degradation, namelythe problem of water logging, salinityand over extraction of ground waterparticularly in high potential irrigatedareas. Unbalanced fertilizer and pes-ticide use has led to soil nutrient un-balance in these areas. Poor soil or-ganic carbon (SOC) content is thebiggest environmental setback ofgreen revolution technologies. Ac-cording to a survey of 8 South-EastCountries, India is at bottom in SOCcontent (8.5g/kg) as compared toMalaysia (33.6g/kg), the highest inSOC content. Poor SOC content inIndia is attributed to extensive min-ing of soil fertility, low and unbalanced

fertilizer use, removal of crop residuefor fodder of household fuel/ burningand severe soil degradation. About130 million hectare land is under dif-ferent degradation process.

Second, the use of hybrid seedsthat require great deal of water foroptimal yield had led to drilling of tube-wells and large scale depletion ofground water reserves. Subsidy towater and energy add to the problems.According to an ICRISAT study, thetrend of over pumping water due tosubsidized electricity with insufficientinvestment in recharging facility hasled to an alarming rate of depletionespecially in dry land areas. More than90 percent of open wells in many vil-lages have completely dried up. This

has affected agricultural output inlong run.

Third, the benefits of greenrevolution technologies did notreach in several parts of thecountry. Malnutrition in womenand children is continued to re-main high, farms are shrinkingin size and natural resourcesare depleting and degrading inquality. Another notable featureof first green revolution is thegrowing regional disparity in de-

velopment. Disadvantaged regions,namely hill and mountain, arid,rainfed and coastal did not gain muchfrom the development efforts. A bal-anced regional development in dis-advantaged regions should assumespecial significance in the planningand development of the programmesin future. The aim should be to en-hance productivity, profitability, em-ployment opportunities, knowledgeempowerment and enrichment of en-vironment and social values as sup-port system.

Focus of Second Green Revolution:Should our approach for second

green revolution be same as that offirst green revolution? The answer is‘No’. It does not mean that approachfor first green revolution was wrong.First green revolution using high


yielding varieties, chemicals irriga-tion, mechanization, mono-croppingetc. brought country from beggingbowl to surplus. The growth trendcontinues for about 2 decades and itis only during last 1 decade, countrycould not sustain it, rather for fewyears, the growth was negative. Thegains were mainly restricted to irri-gated areas. The disadvantaged re-gions of the country, namely: chroni-cally drought and flood prone, rain-fed, hill and mountain, dry land,coastal and tribal areas including is-lands were bypassed during the firstgreen revolution.

Second green revolution shouldfocus on promotion of rain-fed agri-culture where production is mainlyconfined to coarse cereals andpulses. The issue in rain-fed areasis not water scarcity per se but moreimportant is to use and conserve itmore judiciously. The promotion ofhigh value crops may act as a cata-lyst to bring a second green revolu-tion in rain-fed areas. The effortsshould be for integrated approachand packaging of location specifictechnologies, their testing in the farm-ers’ fields, training the farmers for itsadoption with emphasis on efficientmanagement of natural resources.India has inherent comparative ad-vantage of having largest cultivablearable area in the world, richbiodiversity, man power available andscope for special farm products. Oneshould not be perturbed with presentagrarian crisis. It is temporary. Thereare enormous cases of successesin agriculture in the country. There areareas where productivity and profit-ability have increased and farmersfeel proud to attach with their fields.The task of second generation greenrevolution is to turn problems to suc-cesses. The ultimate aim is to de-velop location specific farming sys-tem models and a sustainability planfor long-term gains.

Approaches for Long-termSustainability:

Second green revolution ap-proach should have clear aims andobjectives, time -bound action plan,commitment and support from pub-lic and private sector for sustainablesolutions. For long-termsustainability, the efforts should beto cover the entire farming gamut.

First and foremost step is to criticallyanalyze ongoing programmes /schemes in respect of their perfor-mance and expected outcome. Theprogrammes not performing wellshould be closed. The programmeshaving duplicate objectives shouldbe merged and re-casted. Benefitsand success stories emerged fromthe completed/ on-goingprogrammes should be synergizedand horizontally expanded ratherthan vertical expansion. All theprogrammes/ schemes (new and on-going) should be actionable and af-fordable. Monitoring and concurrentevaluation is important for achievingmaximum benefit of a programmeand help in reducing bureaucratichurdles and corruption. The effortsshould be holistic, i.e. water manage-ment, use of information technologyto improve returns to the farmers,strengthening of extension services,marketing, infrastructure develop-ment, provision of adequate powerto farmers, protection and enrichmentof natural resources, encouragementto off-farm employment opportuni-ties, issuance of reasonable price tofarm produce and special focus onsmall and marginal farmers andmainstreaming gender into agricul-ture. Emphasis on farmers’ incomerather than on production only, waterharvesting and drainage during kharifand on irrigation in rabi, involvementof farmers from the very beginningso that they feel that it is theirprogramme, are also important forsustainable development. Availableopportunities like wide gap betweenpotential and actual yields, many ag-ricultural bright spots, post-harvesttechnology and value addition, ex-pending group cooperation (on-farmand off-farm) activities through self-help-groups and symbiotic public-private sector partnerships, includingfarmer-centric contract farmingshould be explored and capitalizedfor long-term gains.

There is a need for promotingstate level strategies/ farming systemmodels tailored to specific needs ofthe agro-climatic conditions prevail-ing in a state to improve farm sectorgrowth from the current 2 percent to4 percent. India is bestowed with var-ied agro-ecology, namely hill andmountain, arid, coastal, rain-fed etc.A developmental model for a region

should suit to its ecology. For devel-oping models for rain-fed regions/ dryfarming, pulses and oil seed crops,livestock, water harvesting, horticul-ture, agro-processing and value ad-dition are important activities. Mainproblems of hill ecosystem are wa-ter scarcity, soil erosion and dilutionof biodiversity. Promotion of highvalue, income enhancing crops likemedicinal and aromatic plants, adop-tion of water and soil conservationmethods and promotion of organicfarming to fetch premium price areimportant activities for hill agriculture.Agro –forestry, culture and capturefishes, conjunctive use of sea andfresh water, forestry and aquaculture,conservation and sustainable use ofcoastal fresh water aquifers are suit-able for coastal eco-system.

Agricultural sustainability cannotbe viewed in isolation and need aholistic approach to the issues thatmake agriculture ecologically sound,economically viable and socially ac-ceptable. Piece-meal relief and tem-porary solution are not serving thepurpose. The plan for long-termsustainability should include 1) Plan-ning activities keeping in view the lo-cation specific needs in consultationwith all the stakeholders including thefarmers so that the farming systemmodels developed ensure benefitsto the society and are available foradoption and horizontal expansion forlong-term sustainability, 2) Packag-ing of location specific technologies,their validation in farmers’ field andhorizontal dissemination of proventechnologies, 3) To build partnership,pool competence and resourcesfrom conventional and non-conven-tional resources and build socialcapital for better ownership and sus-tainable model for rural development,4) Developing sustainable models inthe less favorable environments andregions through action research,packaging of available proven tech-nologies, technological dissemina-tion including knowledge empower-ment, 5) Establishing farmers’ Dis-tress Call Centers in each state toprovide timely and effective aid tofarmers during period of crisis and6) Generating Agriculture Risk Fundto provide relief to farmers in the caseof successive droughts/ floods etc.

Former National Coordinator,NAIP, New Delhi


REVOLUTIONIZING AGRICULTURE TO

COMBAT HUNGERDr S K Gupta

Globally, the number of chronicallyhungry people suffering from pro-longed food deficiency is currently963 million. The developing coun-tries account for more than 93 percent (901m) of the world’s hungry, theUN’s Food and AgricultureOrganization’s (FAO) Dec. 2008 re-port says. Out of these, 65% almosttwo-thirds are from seven countries— India, China, Bangladesh, Paki-stan, Congo, Indonesia, and Ethio-pia— fighting poverty andmalnutrition. India aloneaccounts for more than20% of the total. Nearly50% of the world’s hungrylive in India. The percent-age of children under fiveyears of age who suffermalnutrition is a high 47%,compared to the 28% fig-ure for Sub-Saharan Africa,the next worst-off region.Malnutrition accounts fornearly 50% of child deathshere. The first-ever GlobalHunger Index 2008 re-leased by the International FoodPolicy Research Institute (IFPRI) atthe close of 2008 has ranked India66th, out of 88 countries having thelargest number of undernourishedpeople 200m in any one country. Theoverall hunger situation in India con-tinues to be severe, though there arevariations across states within coun-try. Madhya Pradesh is worst off withhunger levels comparable toEthiopia’s. Though Punjab’s rank inIndia is number one, it is 33 placesbelow other developing countries onthe index.India is home to the largest numberof hungry people in the world, statedin a report jointly prepared at the endof 2008 by the UN World FoodProgramme and the M SSwaminathan Research Foundation.The report mentioned that the tar-geted public distribution system

(TPDS) as a programme hungrypeople in India has failed to serveintended goals; it has only led togreater food insecurity for the poor. Itattributes the failure of the PDS to itscorruption and inefficiency, besidesfaulty information and wrong assess-ment of household characteristicsand the amount of grain entitlement.In addition to the above, the officialpoverty estimates don’t include calo-rie deprivation among those who are

no longer being classified as beingbelow the poverty line (BPL). This isone of the reasons why a TPDSaimed only at those classified in theBPL category would fall far short ofaddressing the whole issue of hun-ger that includes malnutrition, a con-

dition that could lead to stunting, lowenergy, vulnerability to disease andeventually death.Global food shortages and higherprices are the cause of malnutrition.By the end of 2009, the number ofpeople who suffer hunger worldwidecould swell to one billion, warns theFAO in its Dec.2008 report, - ‘TheState of Food Insecurity in the World2008’. Though there has been asharp drop in foodgrain prices since

last year — cereals arenow more than 50%cheaper from their peakprices earlier in 2008 —the FAO Food Price Indexwas still 28% higher inOct. 2008 compared toOct. 2006.At the present contest mal-nutrition is not a conditionthat affects only the poor.The rich people, who canafford a better life, live inpoor life style— eat foodshigh in sugar and caloriesbut poor in nutrients

Therefore there is a need to addressa growing malnutrition incidence thatis the upwardly mobile in oursociety’s face.Crop productivity is already being af-fected by climate change, largelythrough more frequent and more se-vere droughts and also through morefloods and storms. An extra billionpeople will face water shortage, ce-real production in developing coun-tries will drop and coastal regions willface more damage from floods andstorms.The tremendous potential of the ag-ricultural sector to reduce poverty hasbeen further weakened byunfavourable macroeconomic poli-cies that led to high and variable in-terest rates and inflation as well asthe erosion of public services suchas agricultural extension since the1980s; the failure of agricultural credit


policies; and the massive scalingdown of public investments in irriga-tion and rural infrastructure. The listgoes on. The neglect of agriculturehas put enormous pressure on farm-ers. Low yields, high input prices andlow market prices for agricultural pro-duce have led to a vicious cycle oflow income and stagnation. Massivescaling down of public services, par-ticularly in irrigation and agriculturalextension services, has dealt a blowto the sector. The distress in rural ar-eas is reflected in rising farm indebt-edness and suicides in many coun-tries. The figures are tragic and as-tounding -in India alone, almost87,000 farmers committed suicidebetween 2001 and 2005. Unless theneglect of agriculture is addressed,poverty will not be reduced signifi-cantly in the region, and inequalitieswill widen further. In turn, this willjeopardise the economic prospectsof our countries and the social cohe-sion of our communities. The 2008survey shows that improving agricul-tural labour productivity could have aprofound impact on poverty reduction.Large gains in reducing poverty arealso possible through the compre-hensive liberalisation of global agri-cultural trade, with the potential to takeanother 48 m people out of poverty.Research also shows that raisingproductivity in agriculture will reduceincome inequality significantly.In China, for example, half of the de-cline in poverty occurred in the firsthalf of the 1980s when agriculturewas given priority. When agriculturaldevelopment was placed high on thedevelopment agenda, poverty de-clined rapidly in Vietnam, Thailand,Bangladesh, and many other coun-tries in Asia and the Pacific.Two particularly controversial issueson the international scale arebiofuels; energy produced from food-stuffs like maize and vegetable oil,and genetically modified organisms.Biofuels are responsible for 30% ofthe increase in global food prices,pushing 30 m people worldwide intopoverty, aid agency Oxfam said in areport. Both the United States and theEuropean Union have pro-biofuelpolicies which many food experts sayshould be reversed. Crops geneti-cally modified to produce higher

yields or to thrive in difficult conditionsare seen as a possible way to helpease food shortages, but many Eu-ropean countries remain scepticalabout them.During last year to take on the globalcrisis caused by rising food pricesUN Secretary General Ban Ki-moonordered a top level task force andurged key producer nations to endexport bans. He reiterated that imme-diate priority must be to “feed the hun-gry” and called for urgent funding forthe World Food Programme. In thelong-term, the UN chief acknowl-edged that there is an “urgent neces-sity to address structural and policyissues that have contributed to thiscrisis as well as the challenge posedby “climate change” and “the impactof diversion of food crops to bio-fuelproduction.” Biofuels are touted as away to limit and reduce greenhousegas emissions, held responsible forglobal warming, but since they aregrown on land that would otherwisebe used for food production, theyhave been increasingly blamed forsoaring food prices. The US and theEU have taken a criminal path by en-couraging use of food crops to pro-duce bio-fuels and thus contributingto an explosive rise in global foodprices.In the vast continent of Africa, the totalharvested area under cereals is 98.7m hectares, from which about 146MT of cereals are produced, while inNorth America (US and Canada) the71m ha produces 398 MT. They areproducing 252 MT more despite cul-tivating 20m ha less land! In otherwords, Africa has a vast potential toimprove its agricultural production. Asimilar situation exists in variousother parts of the world. This discrep-ancy is better measured by checkingout the yields per ha of land. For ev-ery ha of land, China produces 6,265kg of rice, while Nigeria just 1,440kg, and India 3,124 kg. Cereal yieldper ha is about 4 tonnes in the devel-oping world, while it is over 6 tonnesin the advanced countries. It’s not justcereals - in other crops too, there isvast differences. Vegetable produc-tion per ha is just over 10 tonnes inAfrica and 9.6 tonnes in South-eastAsia. But in North America, it is 26tonnes and in Europe it is nearly 21

tonnes.The reasons are essentially that inthe advanced countries of the West,much more and better resourceshave been available to the farmers. Ifsimilar resources are made availableto farmers in India or Bangladesh orGabon and Burkina Faso, there is noreason why they too will not increasethe yield tremendously. And this inturn will provide the much-neededfood for their populations. To achievethis would be to resolve the food cri-sis, as well as the endemic povertythat grips most of the third world. Butit requires a monumental shift fromthe current path of development, anda reordering of priorities, both domes-tically and internationally.It was suggested by FAO that cerealproduction would have to be in-creased by 50% by 2030 to meet theescalating worldwide demand. Quitesimply, agriculture needs anotherrevolution. Increasing agriculturalproductivity should be at the centre ofthis new approach. It has becomeevident that in order to achieve thefood production targets of the futurea major effort will be required to en-hance the seed replacement rates ofvarious crops. It is crucial that thesector’s productivity is improvedthrough increased investment in re-search and development, humancapital, extension services, irrigationand rural infrastructure. Land tenuresystems need to be revamped, wherenecessary.Given its natural limitations, agricul-ture alone cannot take the region’s641m poor people out of poverty.Therefore, a gradual transition fromagriculture should complement pro-ductivity improvements - by empow-ering the poor, particularly women,with the skills to tap labour marketopportunities and by promoting ruralnon-farm activities and regionalgrowth centres. India is endowed withsecond largest area of farmland, andthe largest area of irrigated land, inthe world and, with its hugegermplasm diversity, its seed indus-try is well placed to serve both do-mestic and international markets,provided we trace the latest in theagricultural scenario.

Senior Research Officer, PlanningCommission


Excel


FFFFFuture Outlookuture Outlookuture Outlookuture Outlookuture Outlook


It is difficult to imagine Indiahaving a sustainable growth anddevelopment without theagriculture sector. There is a hugerural population who has to earn aliving, more than a billion peoplehave to eat everyday and someexport would create a welcomeforeign exchange income. But thestatus of agricultural business(cultivation) does not attractinvestments. Returns arefluctuating and risks are seen ashigh. True, production managementin general is not much developedand also transport, storage anddistribution is to be much improved.However, the proposed 70%increase in agricultural output by2050 to feed the world population,as mentioned by the FAO, does notmean a revolution for India. It is juststeps wise improvements of lessthan 2% per year. At present thereis scope enough for much largerincreases in several sectors,especially the high value crops ofhorticulture and floriculture. Ofcourse there are many examplesof high standard, professionalfarming of high productive cropsand not only commodity goods, butalso several productions as fruitsand vegetables. With the inclusionof the other sectors and especiallythe smaller rural farmers, agriculturecould become a motor for economicgrowth, not only when monsoon isgood!

Understandably governmentshave been on this issue; fromvarious angles many attempts havebeen made to improve the situation.There is however, in my opinion, nota comprehensive program; maybein overall policy, definitely not inimplementation. This may find itsroots in existing mindsets in socialstructures, institutions and politics,at all hierarchic levels of theseentities. Often the structures andschemes, although fragmented, arecommendable, but it is the lack ofperformance and final results,

whatever the reason may be, thatmake these programs fail.

Some other countries whereagriculture development has takenplace may provide goodsuggestions. Colombia in SouthAmerica has developed large partsof its agriculture through practicalresearch (read: professionalcultivation), extension of theseresults to the farmers in turn linkedto credit to implement theschemes, all in one program. Theprogram was moreover executedvery strictly on all fronts; programdirectors, extension workers andfarmers had clear responsibility.Israel, after adopting foreigntechnologies and further developingthem over a long period to makethem their own and improve them,has been able very quickly to getsmall producers together for centralgrading and marketing. Also theimmigration of its habitants from allover the world since theestablishment of the State, broughtin a huge knowledge base.Countries like Australia, Brazil,Colombia, Kenya and recentlyEthiopia allowed and invitedforeigners with good knowledge to

start specific productions likehorticulture and floriculture. In arelatively short period (10 to 15years) this knowledge becamenational property.

All these examples demonstratethat first the right professionalpractices have to be accepted, thenadjusted and finally passed on tofarmers. Only years of cultivationwill result in valuable experience.There is no other way to learn, butsupport from global knowledge isextremely important, it makeslearning much faster. The recentlyproposed cooperation between theUSA and India in the field ofagricultural research is a positivedevelopment, but let it be practical,in the line of extension to thefarmers. Practical research doesnot mean inventing the wheel; it isin most cases adopting an existingcultivation protocol, executing itwith preciseness. The results willprovide valuable information aboutpossible adaptation of thecultivation protocol, to make it a‘home version’. Ultimately, this isthe process of science; a continuedprocess of trials> results>analysis> conclusions> new trials.

A SURE FUTURE FOR INDIAN AGRICULTURERobert de Bos


Although research has to be donein many fields for the future, atpresent the priority lies in findingand implementing the practices ofthe professional cultivation in thefield. Pure scientific research is oflower priority at present.

In regard to the adaptation ofcultivation practices from othercountries, it is interesting to see,that often a crop or growingprocedures imported from anothercountry undergoes seriousscrutiny, but when we shift thesame from South India to themountainous North it is oftenaccepted without adjustment.

Horticulture Departments orUniversities could undertake thiswork of empirical research; highcommitment is required, becausethe experimental cultivation has tobe successful. Once theprocedures are worked with, it hasto be transferred to the potentialgrowers at a very practical level.The results of experimentalcultivation and further research fromall entities have to be broughttogether under a committee withrepresentatives of all entitiesdelivering their findings. Thisinformation will be analysed andvalued, then compared andcomplemented with global researchresults. Some results will needconfirmation by practicalimplementation. It will then form partof the standard guidelines forextension. This research takesoften already place through thevarious national committees, butthese various committees are notputting their findings together,hence still there is fragmentationof knowledge. It would be a goodstep to get a ‘national coordinatingknowledge-pool committee’ inplace.

It is well agreed on that manyan agriculture activity has to belifted to higher levels of productivity,especially for small farmers. Thatis higher output per square meterof crops, also traditional crops.There is no merit to be the largestproducer, for the single reason thatmore land is under cultivation. In-

depth investments are required!There are several ways to

achieve this higher production:1. Creating better, more

controlled conditions. Windbreaks, shade nets, nethouses or green houses andtunnels, precise irrigationsystems, etc.

2. Improved plant material andsuitable varieties

3. Improved cultivationtechniques and management

4. Intensive cultivation of cropswith higher value

5. Maximised plant density6. More continued production,

minimized fall periods.7. Cost efficient, but not

necessarily cheaperproduction. The rightinvestment is paid back bymore or better products…….and to ensure maximumprice:

8. Getting all products in goodcondition in hands of theconsumer, through theminimum number and onlyprofessional channels

That is quite an agenda, but withgovernments, both Central as wellas the States, willing to spendmoney in the form of subsidies, thecosts for point 1 and 2 will bealleviated. However, a green housein itself is not producing more orbetter, you have to be told what cangrow and how to grow. Ultimately,extra production is essential, firstly

to return the money to pay for thefacility and extra equipment,secondly to comply with theobjective to increase the income offarmers. Traditional growingmethods do not. This is not todemean traditional growing, butrecognizing that, as any otherindustry, agriculture also hasundergone transformation and thegap between former and present isgetting larger and larger.

That brings us to the points 3,4, 5 and 6. The grower has to beinformed and technically assisted.For this, extension officers in thefield are required. Persons, not onlywith a certain degree, but moreimportantly with practicalexperience, able to work withgrowers in the field. The extensionworker has to understand that thegrowers have to make a change ofmind and attitude and help themwith this. Hi-tech-, intensive- orgreen house- cultivation is muchmore a factory job than a traditionalagricultural activity. Precise,efficient, effective and in-time arethe management words for thiswork.

It is an understatement to saythat finding large numbers ofpersonnel for the job of extensionis a huge undertaking. Teachingand training all these extensionworkers is next, hence thedevelopment of a curriculum isnecessary, a task for aninternational oriented institute. This


is typical a train-the-trainersprogram. Without extensionservices, now(!), we face the riskthat green houses are standingempty, because farmers aredisappointed with the initial results,do not know what to plant and donot have money to pay the bank.This situation is real and occurringalready.

For now the extension is doneby private persons as advisers andconsultants and company’s salespersonnel. Amongst them there aresome highly qualified professionals,but also, too many, inexperiencedpersons. Together this creates aconfusing situation for the farmers,and for anybody else. Often advicesare biased.

MarketEffective and practical marketing

of special agri-products in Indiacannot be done by an institute;these institutes cannot do morethan collection of products, centralgrading (standardization) andmaybe a minimum price fixing. Afunction that cannot realistically bedone by a private organization, is acountry wide promotion of theproduct and education of theconsumer. Organisations asMarketing Boards and APEDAcould have a task here.Then what is left is thesegmentation of the market. Thissubject is picked up in horticultureand floriculture produce by private

companies. So far not verysuccessfully, due to lack of regularsupply and that of higher standardproducts and on the other hand, thelack of price stimulus for the growerto improve.

In line with the above, hi-techfloriculture has seen it all.

The hi-tech floriculture is one ofthese agriculture activities ofintensive cultivation, which hasgone through the process ofacquiring and implementing know-how. In the early nineties it waspresented as a high investment,high income business. Because ofpurchase of highly sophisticatedfacilities and equipment (andmore!), it was indeed highinvestment. But automation doesnot take over expertise andprofessional knowledge and hencemany things went wrong. The resultwas low production and low qualityand hence income was low, far toolow to justify the investments.Extension of square meters forproduction was not the solution,because production per squaremeter was low. The industry lookedat it from the point of view of toohigh production cost instead of toolow production results and went ina phase where costs were cut.Costs were cut so deeply thatproduction was hardly possible anddefinitely at the cost of quality.Some early entrepreneurs closeddown, others who survived had

financial problems. At present, anumber of early establishedcompanies that becamesuccessful, are joined bycompanies that were establishedfrom 2000 onwards. These becamemore successful, making use offormer experiences.

Surprisingly India is in one of thebetter positions for future floriculture(and horticulture). Whereascountries like Kenya, Colombia,Israel and others have lost theirelasticity in continued improvementof efficiency in the business, i.e.investments with good returns (newvarieties, new technologies), labourefficiency and productivity,production levels in quantity andquality, etc., India has still a largescope of possible improvement inany of these fields. However, wehave to accept that learning is notanymore restricted for the youngerpeople, but has become a lifelongactivity. With an open mind, it isquick learning using knowledgeglobally available. There are otherpositive points. Together with onlysome western countries, India canexport, but also has a strong localmarket. Subsidies are available.Governments are investing in theindustry by subsidizing total projectestablishments, green houses,plant material, etc., even if it issometimes cumbersome to qualifyfor these funds and funds are notfully available for the project. Inmany areas individual farmers haveset up or are setting up small scalefloriculture. This un-organized sectoris an opportunity and potential forprogressive entrepreneurs, who areable to set up in larger scale.

Important note : To besuccessful, everybody in the flowerand vegetable production has tofollow precisely the cultivationpractices and post harvest handling,without compromise, because theworld sets its standards higher andhigher, every day.

*MD and CEO,Bangalore Plant First

AGRICULTURE YEAR BOOK 2009 1 · AGRICULTURE YEAR BOOK 2009 3 Dear Readers, I am extremely happy to...

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