DOUBLING FARMERS’ INCOME: ISSUES AND STRATEGIES FOR ...€¦ · Table 73: Average monthly gross...

NOVEMBER 2018

DOUBLING FARMERS’ INCOME: ISSUES AND STRATEGIES FOR RAJASTHAN

Final Report

NRMC

Stamp

1

CONTENTS

1) Executive Summary ...................................................................................................................... 9

2) Background ................................................................................................................................. 18

A) OBJECTIVES OF THE ASSIGNMENT .................................................................................................. 20

B) SCOPE OF WORK .......................................................................................................................... 21

3) Review of Literature ................................................................................................................... 22

a) Reforming Agricultural Produce Marketing Policies and Interventions ................................... 23

b) Raising Productivity of Land and Water .................................................................................... 26

c) Land Tenancy Reforms .............................................................................................................. 28

d) Improved relief measures in the event of natural disasters ..................................................... 29

e) Enhancing Farmer’s Income – International Experiences ......................................................... 31

4) Methodology .............................................................................................................................. 33

a) Rajasthan: physiography, soils and water resources ................................................................ 33

b) Agro-climate and Agro-economic Zones of Rajasthan .............................................................. 34

c) Sampling Methodology for Analysing Farmer-level Objectives ................................................ 35

d) Sampling Stages ........................................................................................................................ 36

e) Macro-level Objectives ............................................................................................................. 39

f) Analytical Framework ............................................................................................................... 40

5) Income and investment required to double farmer’s income ................................................... 43

a) Estimating Farmers’ Income ..................................................................................................... 43

b) Investments Required for Doubling Farmer’s Income .............................................................. 45

6) State of farmers and farming in Rajasthan ................................................................................. 47

a) Crop Composition and Growth ................................................................................................. 48

b) Variability in Crop Output ......................................................................................................... 52

c) Livestock Sector ........................................................................................................................ 54

d) Drivers of Growth ...................................................................................................................... 58

e) Factors Influencing Growth ....................................................................................................... 62

f) Gross Cropped Area .................................................................................................................. 62

g) Improved Crop Yields ................................................................................................................ 63

h) Investment and Infrastructure .................................................................................................. 64

i) Public Investment in the Farm Sector ....................................................................................... 69

j) Farm Prices ................................................................................................................................ 72

k) Constraints to Growth............................................................................................................... 73

i) Water scarcity and inefficient use ........................................................................................ 73

ii) Climate Change ..................................................................................................................... 76

2

iii) Underinvestment in agricultural research ............................................................................ 77

iv) Underdeveloped value chains for high-value crops ............................................................. 78

v) Feed scarcity ......................................................................................................................... 78

vi) Underdeveloped livestock markets and infrastructure ........................................................ 79

vii) Ban on Animal Slaughter ....................................................................................................... 79

viii) Declining Agro-exports .......................................................................................................... 81

7) Profile of the Sampled Districts .................................................................................................. 83

AJMER .................................................................................................................................................... 83

a) Climate ...................................................................................................................................... 84

b) Soil ............................................................................................................................................. 84

c) Land utilization .......................................................................................................................... 84

d) Forest ........................................................................................................................................ 84

e) Ground water resources ........................................................................................................... 84

f) Irrigation .................................................................................................................................... 85

g) Cropping pattern ....................................................................................................................... 85

h) Crop Insurance .......................................................................................................................... 86

i) Animal Husbandry ..................................................................................................................... 86

j) Infrastructure ............................................................................................................................ 87

k) Trade and Commerce ................................................................................................................ 88

l) Industries .................................................................................................................................. 89

m) Minerals and Mining ................................................................................................................. 89

UDAIPUR .................................................................................................................................................. 91

a) Climate ...................................................................................................................................... 91

b) Soil ............................................................................................................................................. 91


d) Forest ........................................................................................................................................ 92

e) Ground water resources ........................................................................................................... 92

f) Irrigation .................................................................................................................................... 92

g) Cropping pattern ....................................................................................................................... 93

h) Crop Insurance .......................................................................................................................... 94

i) Animal Husbandry ..................................................................................................................... 94

j) Infrastructure ............................................................................................................................ 95

k) Trade and Commerce ................................................................................................................ 95

l) Industries .................................................................................................................................. 96

m) Minerals and Mining ................................................................................................................. 96

JODHPUR ................................................................................................................................................. 98

3

a) Climate ...................................................................................................................................... 99

b) Soil ............................................................................................................................................. 99


d) Forest ........................................................................................................................................ 99

e) Ground water resources ......................................................................................................... 100

f) Irrigation .................................................................................................................................. 101

g) Cropping pattern ..................................................................................................................... 101

h) Crop Insurance ........................................................................................................................ 102

i) Animal Husbandry ................................................................................................................... 102

j) Infrastructure .......................................................................................................................... 103

k) Trade and Commerce .............................................................................................................. 103

l) Industries ................................................................................................................................ 104

m) Minerals and Mining ............................................................................................................... 104

ALWAR .................................................................................................................................................. 106

a) Climate .................................................................................................................................... 107

b) Soil ........................................................................................................................................... 107

c) Land utilization ........................................................................................................................ 107

d) Forest ...................................................................................................................................... 107

e) Ground water resources ......................................................................................................... 107

f) Irrigation .................................................................................................................................. 108

g) Cropping pattern ..................................................................................................................... 108

h) Crop Insurance ........................................................................................................................ 109

i) Animal Husbandry ................................................................................................................... 109

j) Infrastructure .......................................................................................................................... 110

k) Trade and Commerce .............................................................................................................. 111

l) Industries ................................................................................................................................ 111

m) Minerals and Mining ............................................................................................................... 112

8) Sample survey ........................................................................................................................... 114

a) Profile of sampled villages ...................................................................................................... 114

i) Demographic profile of the sampled households ............................................................... 114

ii) Social groups and Religion .................................................................................................. 115

iii) Possession of Ration card, Aadhar card and MGNREGA card ............................................ 117

iv) Ownership and type of house ............................................................................................. 119

v) Primary source of cooking fuel, lighting and drinking water .............................................. 120

vi) Literacy and Education ........................................................................................................ 121

vii) Occupation .......................................................................................................................... 124

4

viii) Migration............................................................................................................................. 125

ix) Access to Social Security Schemes ...................................................................................... 126

9) Income, Expenditure, Productive Assets and Indebtedness of Sampled Villages .................... 129

i) Average Monthly Income from Different Sources .............................................................. 129

ii) Income in Cash Through Sale of Agricultural Commodities ................................................ 132

iii) Consumption Expenditure .................................................................................................. 134

iv) Investment on Productive Assets ....................................................................................... 134

v) Outstanding Loans .............................................................................................................. 138

vi) Land Distribution ................................................................................................................. 141

vii) Crop Husbandry .................................................................................................................. 142

viii) Farm Inputs ......................................................................................................................... 147

ix) Value addition and Marketing ............................................................................................ 151

x) Status of APMCs .................................................................................................................. 152

xi) Constraints .......................................................................................................................... 154

xii) Crop Insurance .................................................................................................................... 157

xiii) Livestock .............................................................................................................................. 158

10) Government of Rajasthan’s Approach to Double Farmers Income .......................................... 170

11) A Strategy for Doubling Farmers’ Income ................................................................................ 173

a) Crop Sector.............................................................................................................................. 175

b) Livestock Sector ...................................................................................................................... 179

c) Agri-business, Value Chains and Marketing Reforms ............................................................. 180

d) Improving Access to Services .................................................................................................. 182

e) Enhancing off-farm income ..................................................................................................... 182

12) Collaborations and Partnerships .............................................................................................. 183

13) Priority Policy Reforms at the Centre and State-Levels ............................................................ 188

14) Conclusions ............................................................................................................................... 192

14) References ................................................................................................................................ 194

15) ANNEXES ................................................................................................................................... 199

5

LIST OF TABLES

Table 1. Distribution of Districts among Agro-climatic zones ............................................................... 36

Table 2. District-wise Monthly Personal Consumer Expenditure (Rs.) in Rajasthan ............................ 44

Table 3: MPCE Projection ...................................................................................................................... 45

Table 4. Main Crops of Rajasthan Across Agro-Climatic Zones ............................................................ 49

Table 5. Share of crops in gross cropped area and gross value of output ............................................ 51

Table 6. Major Spice Growing Districts ................................................................................................. 52

Table 7. Growth and variability in area, yield, and production of major crops .................................... 55

Table 8. Share of Value of Output to Agriculture and Allied (%) .......................................................... 55

Table 9. Percent Growth in Value of Output at Constant Prices .......................................................... 56

Table 10. Trend in livestock population (million) ................................................................................. 56

Table 11. Growth in livestock production ............................................................................................. 57

Table 12. Structure of milk production in Rajasthan ............................................................................ 57

Table 13. Index of Agricultural Production ........................................................................................... 58

Table 14. Value of Main Agricultural Produce Based on Current Prices (Rs. Crores) ........................... 59

Table 15. Volatility in Guar Bean Prices (C.V. in Percent) ..................................................................... 60

Table 16. Seed replacement rate for important crops (%) ................................................................... 63

Table 17: Gross Capital Formation ........................................................................................................ 65

Table 18: Allocation of Funds in State Budget (2017-18) ..................................................................... 66

Table 19: Development Projects: Public-Private Partnership Projects ................................................. 68

Table 20. Public investment in agriculture and irrigation (2004–05 prices) ......................................... 69

Table 21. Trend in animal health infrastructure in Rajasthan (# of units) ............................................ 72

Table 22. Market arrivals for selected commodities in Rajasthan ....................................................... 74

Table 23. Water Resource Summary for Rajasthan .............................................................................. 74

Table 24. Groundwater Scenario in Rajasthan ..................................................................................... 75

Table 25. Water use efficiency of different crops in Rajasthan ............................................................ 75

Table 26. Intensity of research and education funding by the states .................................................. 77

Table 27. Status of food processing industry in Rajasthan, 2012–13 ................................................... 78

Table 28. Share of Meat Production in India (2015-16)........................................................................ 79

Table 29: Status of Ground Water Availability (March 2004) ............................................................... 85

Table 30: Source Wise Irrigated Area in Terms of Percentage ............................................................. 85

Table 31: Kharif crops (2014-2015) ....................................................................................................... 86

Table 32: Status of Crop Insurance ....................................................................................................... 86

Table 33: Livestock and Poultry Population (2012) .............................................................................. 87

Table 34: District at a glance (2015) ..................................................................................................... 87

Table 35: Number of Krishi Upaz Mandies (KUM) and Major Commodities ........................................ 88

Table 36: Classification of Industries .................................................................................................... 89

Table 37: Production of Minerals (2015-2016) ..................................................................................... 89

Table 38: Status of Ground Water (2009) ............................................................................................. 92

Table 39. Source Wise Irrigated Area in Terms of Percentage ............................................................. 92

Table 40. Kharif and Rabi Crops Production (2014-15) ......................................................................... 93

Table 41. Status of Crop Insurance ....................................................................................................... 94

Table 42. Livestock and Poultry Population (2012) .............................................................................. 94

Table 43: Krishi Upaz Mandies (KUM) and name of main commodities .............................................. 96

Table 44. Classification of Industries .................................................................................................... 96

Table 45: Production of Minerals (2015-2016) ..................................................................................... 96

Table 46. Ground Water Availability (March 2009) ............................................................................ 101

6

Table 47. Source Wise Irrigated area in terms of Percentage ............................................................ 101

Table 48. Kharif and Rabi Crops (2014-15) ......................................................................................... 102

Table 49. Status of Crop Insurance ..................................................................................................... 102

Table 50: Livestock and Poultry Population (2012) ............................................................................ 102

Table 51: Ajmer at a Glance (2015) .................................................................................................... 103

Table 52: Krishi Upaz Mandies (KUM) and the main commodities .................................................... 104

Table 53: Number of Industries .......................................................................................................... 104

Table 54: Production of Minerals (2015-2016) ................................................................................... 105

Table 55: Status of Groundwater availability...................................................................................... 107

Table 56: Source Wise Irrigated Area in Terms of Percentage ........................................................... 108

Table 57: Kharif and Rabi crops (2014-2015) ...................................................................................... 108

Table 58: Status of Crop Insurance ..................................................................................................... 109

Table 59: Livestock and Poultry Population in Alwar District (2012) .................................................. 109

Table 60: District at a glance (2015) ................................................................................................... 110

Table 61: Number of Krishi Upaz Mandies and name of the main commodities ............................... 111

Table 62: Classification of Industries .................................................................................................. 111

Table 63: Production of Major Minerals (2015-2016) ........................................................................ 112

Table 64: Population size of the sampled villages .............................................................................. 114

Table 65: District-wise average number of persons per 100 farmer households as adults and children

by sex in different income classes, by social group and religion ........................................................ 115

Table 66: Percentage distribution of household by religion and Social group by size class of land .. 116

Table 67: Percentage distribution of farm household holding different type of ration, Aadhar card,

and MGNREGA by social group ........................................................................................................... 118

Table 68: Percentage distribution Ownership and type of housing by social group and religion ...... 119

Table 69: Percentage distribution of household using different methods of cooking and lighting by

social group and religion ..................................................................................................................... 120

Table 70: District wise Male-Female percentage of educational attainment by sex across social group

and religion ......................................................................................................................................... 123

Table 71: District wise average distribution of sample households on Migration rates by social group

and religion ......................................................................................................................................... 125

Table 72: Percentage of farmers who have access to these Social Security Schemes ....................... 128

Table 73: Average monthly gross income (Rs) from different sources per farmer household during

the agricultural year 2016-2017 ......................................................................................................... 131

Table 74: District-wise and item-wise average quantity and value of consumption per person of

farmer households per 30 days .......................................................................................................... 135

Table 75: District wise average monthly expenditure incurred on productive assets per farmer

household ........................................................................................................................................... 137

Table 76: Percentage distribution of outstanding loans by different sources of loan of farmer

households .......................................................................................................................................... 139

Table 77: Percentage distribution of outstanding loans by purpose of loan of farmer households .. 140

Table 78. District wise percentage distribution of farmers by land size class .................................... 141

Table 79. Income from Farming in the Four Districts ......................................................................... 142

Table 80. District-wise Distribution of Sources of Irrigation ............................................................... 147

Table 81. District-wise Distribution of Average Land-holding Size ..................................................... 150

Table 82. District-wise Distribution of Percent Farmers Engaged in Marketing................................. 151

Table 83. Percentage Distribution of Farmers Insuring Crops by Land-class size ............................... 158

Table 84. District-wise Distribution of Average Number of Animals Reared by Land-class size ........ 159

Table 85. District-wise Average Distribution of Fodder by Land Class Size ........................................ 162

7

Table 86. District-wise Distribution of Income through Sale of Livestock Produce ............................ 163

Table 87. District-wise distribution of Income by Sale of Livestock by Land-size class ...................... 165

Table 88. Average Prices (Rs. per Quintal) .......................................................................................... 174

Table 89. Change in water use and farm income with a change in crop area allocation ................... 198

Table 90. Major Production Clusters in Rajasthan .............................................................................. 213

Table 91. Production and export of seed spices in India (000 tons) ................................................... 215

Table 92. Identifying potential agri-business opportunities in Rajasthan .......................................... 219

Table 93. Rajasthan Agriculture Productive Capacity (Lakh Tonnes) ................................................. 224

Table 94. NTBs prevalent in Agro, Animal and Food Product Segment.............................................. 227

Table 95. Agro-export Basket and Potential Markets Through Value Addition ................................. 228

Table 96. Strategy for Strengthening Supply Side Infrastructure ....................................................... 229

Table 97. Employment in Organised Sector (Public and Private) ....................................................... 230

8

LIST OF FIGURES

Figure 1. Transforming Indian Agriculture ............................................................................................ 18

Figure 2. Agro-climatic Zones of Rajasthan........................................................................................... 35

Figure 3. Monthly Personal Consumption Expenditure (Rs) ................................................................. 43

Figure 4. Changes in share of agriculture in NSDP and workforce (in percent) ................................... 47

Figure 5. Average Growth Rate of Sectors of Rajasthan’s Economy (in percent) ................................. 47

Figure 6. Change in composition of the agriculture sector (2004–05 prices) ....................................... 48

Figure 7. Area and production of horticulture crops, 2010-15 ............................................................. 51

Figure 8. Growth in Crop Production (2009-14) ................................................................................... 60

Figure 9. Trends in net sown area (NSA) and gross cropped area (GCA) and cropping Intensity ........ 62

Figure 10. Trend in gross irrigated area ................................................................................................ 62

Figure 11. Trends in fertilizer consumption .......................................................................................... 62

Figure 12. Trend in number and density of tractors ............................................................................. 64

Figure 13: Gross Capital Formation for All Industries at Current Prices (Lakh Rupees) ....................... 65

Figure 14: GCF in Agriculture by Type of Assets at Current Prices (Lakh Rupees) ................................ 66

Figure 15: State-wise Infrastructure Investment share in India's Infrastructure Investment .............. 67

Figure 16: Installed Power Capacity (MW) ........................................................................................... 68

Figure 17. Trend in public expenditure (INR million) ............................................................................ 69

Figure 18. Composition of agricultural expenditure, 1996–2005 ......................................................... 70

Figure 19. Composition of agricultural expenditure, 2006–14 ............................................................. 70

Figure 20. Share of horticulture and crop insurance in total spending on crop husbandry ................. 71

Figure 21. Trend in overall road and rural road density ....................................................................... 71

Figure 22. Growth in prices, 1996-05 and 2006-15 .............................................................................. 73

Figure 23. Trends in market arrivals of agricultural commodities (1000 tonnes) ................................ 73

Figure 24.Trend in area irrigated through drip and sprinkler systems (ha) .......................................... 76

Figure 25. Drought Frequency for Different Districts ........................................................................... 76

Figure 26. Investment in agricultural research and education, (2004-05 prices) ................................. 76

Figure 27. Export Destinations of Buffalo Meat from India: 2016-17 .................................................. 80

Figure 28. Sectoral Contribution to State Exports (2015-16)................................................................ 81

Figure 29. Trend in Export of Agro and Food Products from Rajasthan ............................................... 82

Figure 30: Ajmer District (Source: District Census Handbook 2011) .................................................... 83

Figure 31: Udaipur District (Source: District Census Handbook) .......................................................... 91

Figure 32: Jodhpur District (Source: District Census Handbook) .......................................................... 98

Figure 33: District Alwar (Source: District Census Handbook) ............................................................ 106

Figure 34. Major Source of Drinking Water ........................................................................................ 122

Figure 35. Proportion of income from different sources .................................................................... 131

Figure 36: Average monthly cash income (Rs.) by size class of land .................................................. 133

Figure 37. Distribution of Farmers by Land-Class Size ........................................................................ 141

Figure 38. Rank Based Quotients for Constraints Faced by Farmers in Farming ................................ 154

Figure 39. Proportion of Households Buying Food Grains in Rajasthan ............................................. 173

Figure 40. Enablers for Enhancing Income of Farm Households ........................................................ 180

Figure 41. Meeting the Challenges ..................................................................................................... 182

Figure 42. Sectoral Contribution to State Exports (2015-16).............................................................. 225

Figure 43. Share of Major Sectors in Rajasthan’s Exports (FY09, FY13 and FY16) .............................. 226

Figure 43. Trend in Export of Agro and Food Products from India and Rajasthan ............................. 226

9

1) EXECUTIVE SUMMARY

The rapid increase in food production has been possible through a number of policy mechanisms. Providing a minimum support price and following up with procurement from farmers is an important instrument. Extending subsidies to key inputs like fertilisers, irrigation, power, etc. is another. Together, these have helped enhance incomes of farmers. The efficacy of these instruments to enhance farmer’s incomes has however reduced over the years and there are several empirical studies that have reported large numbers of farm households subsisting on insufficient income. This in turn is reflected in the deepening of agrarian distress across several parts of the country. Increasing cost of cultivation, mounting indebtedness, static yield rates, lack of marketing opportunities etc. are some of the issues that are facing farmers. An extreme manifestation of this distress has been in the form of many thousands of farmers being driven to commit suicides. The government’s current vision and strategic interventions to transform Indian agriculture has been spelled out in 10 points, one of which is to double the income of farm households by 2022. Seven key strategic interventions have been proposed for doubling farmer’s income. These are: (a) Focus on irrigation with large budgets, with the aim of "per drop, more crop", (b) Provision of quality seeds and nutrients based on soil health of each field, (c) Investments in warehousing and cold chains to prevent post-harvest crop losses, (d) Promotion of value addition through food processing, (e) Creation of a national farm market, removing distortions and develop infrastructure such as e-platform across 585 stations, (f) Strengthening of crop insurance scheme to mitigate risks at affordable cost, and (g) Promotion of ancillary activities like poultry, bee-keeping and fisheries. The study was carried out in Rajasthan in 2017, which is the largest State of Indian Union with 10 agro-

climatic zones. It is India’s largest producer of mustard, pearl millet (bajra), and three spices

(coriander, cumin, and fenugreek), cluster beans, isabgol and it is the second largest producer of

maize. The state has a substantial area under vegetable crops. It is also having the second largest herd

of livestock amongst Indian states contributing about 10 percent of the country’s milk and 30 percent

of mutton production. The diversified cropping pattern and the presence of livestock as a major

livelihood source has helped the state in managing the wide range of risks associated with dryland

agriculture.

The share of agriculture in the state’s net domestic product (NSDP), including crop husbandry, animal

husbandry, fisheries, and forestry, fell by nearly 15 percent (from 32.5 percent to 23.3 percent)

between 1991 and 2011. Within this overall growth and employment context, agricultural growth

picked up steadily to peak at over 5 percent in 2011 (and has held steady since) – the highest growth

achieved over the past 25 years.

Good agricultural growth has also translated into improved food security and per capita availability of

food grains increased. The growth in the sector was accompanied by changes in its composition during

this period. The share of livestock in the gross value of agricultural output rose. Crop production is

concentrated in the two main growing seasons – kharif (on about 153 lakh ha) and rabi (on about 90

lakh ha). The steep fall in area cultivated during rabi is due to the largely rain-fed agriculture practised

in the state.

Cropping patterns are seasonal, reflecting the climatic conditions prevailing at distinct times of the

year: eight crops currently account for 85 percent of production in kharif areas, dominated by guar

10

seed and bajra (pearl millet), while four crops are most important in rabi areas, led by wheat and

rapeseed-mustard.

The state has a sizeable livestock population and the production is growing steadily. Livestock density

is higher in agro-climatic zones IVA and IVB and is tilted in favour of dairy animals. Milk production

reached 17 million tons in 2014–15, while egg and meat production also experienced accelerated

growth mainly due to improved yield. It is notable that the milk yield of most breeds has improved

and is now estimated to be above the national average.

For the crop sector, between 1996 and 2005, cereals (pearl millet and wheat), oilseeds (rapeseed-

mustard), and high-value crops were the main contributors to growth. From 2006-15 growth became

more diversified. The most striking result during this period is that guar emerged as the largest

contributor to overall growth, with its share in growth increasing to 23 percent from less than 5

percent. The contribution of guar however collapsed in the subsequent year due to the crash in its

international demand by the hydrocarbon sector. The contribution of other crops, including cereals

and oilseeds, was lower in this period despite an increase in their annual growth rates.

Livestock are a major source of growth, and among the allied subsectors (crops, livestock, forestry and

fisheries) have consistently been the largest contributor to agricultural growth over the past 25 years.

The growth in milk yield has been rapid due to a shift towards better quality animals. Crossbred cow

milk constituted almost one-third of total cow milk in 2015 as compared to 3 percent in 2000.

Analysis of Gross Fixed Capital Formation for the overall economy indicates that the role of private

sector in GFCF is increasing each year. In the year 1980-81 share of private sector in GFCF was 54.25

per cent and it increased to 71.65 percent in the year 2014-15 for all sectors of the economy. The

capital formation in agriculture follows a similar trajectory. Private investments in agriculture have

always been higher than public and this grows further with time over the 35-year period.

Analysis of the public investments in agriculture reveals that while crop husbandry continued to be

the focus of most government spending, the share of animal husbandry declined, as did soil and water

conservation, agricultural research and education, and fisheries. Dairying and warehousing remained

neglected. In the livestock sector, the development and provision of animal health and veterinary

services accounted for more than two-thirds of total spending on animal husbandry and dairy

development. The state allocated hardly any resources for fodder development, even though fodder

is the most important input in livestock production. The increased focus on crop husbandry in public

expenditures is due to an increased emphasis on horticulture and crop insurance.

Among the constraints to growth, water scarcity and its inefficient use emerged as the biggest contributor. Groundwater in over 68 percent of the blocks are overexploited while the remaining are in a critical or semi-critical state. More than 60 percent of the productive area in the state has sandy soils with poor water-holding capacity, resulting in huge water losses and a water use efficiency rate that is less than 30 percent in some surface water irrigation projects. Another constraint to growth is the low rate of expenditure in agricultural research and education which is around 0.25 percent of the agri-GDP. Value chains for high-value crops are underdeveloped. Livestock is an important sector but the state suffers from a 40 percent deficiency in fodder. Markets for small ruminants are underdeveloped. Although animal health infrastructure has improved, the breeding infrastructure is poor. The ban on the sale of cattle for slaughter (subsequently put on hold by a court order) and in transport of camels outside the state has adversely affected the farm sector. Agro-exports from Rajasthan follows the national trend and are declining steadily since 2013-14.

11

Given the issues with respect to using the income figures from successive NSS surveys, expenditure was used as a proxy for income. The prospects of doubling the Mean Per Capita Expenditure (MPCE) by 2022-23 does not work in favour of the State. The linear model predicted doubling of nominal and current MPCE by the 2030-31 and 2032-33, respectively. The log-linear model, which was found to be marginally robust than the linear model, predicted the doubling of nominal income by 2023-24 and the real income by 2024-25. The estimates of the Dalwai Committee on DFI indicates that an additional investment of Rs, 11,600 is required to double farm household’s income by 2022. In order to analyse the state of farmers and farming, data and information obtained from a sample survey was employed. A multi-stage sampling design was adopted for collecting this primary information. Four agro-climatic zones were selected and one district from each were selected purposively. Four villages from each district were drawn randomly and from these, a total of 862 households were covered under the sample survey. Results of the sample survey indicated that in Ajmer, the main crops cultivated were Bajra, Jowar, Cotton, Maize, Paddy and pulses like Moong during Kharif and in Rabi season, Wheat and Barley are the main crops. Most farm holdings are less than 5 bighas in size. In all four villages, none of the farmers reported receiving extension support. Public sector extension workers and KVKs are reached by very few people. Most of the farmers reported buying seeds and fertilizers from input dealers. Farmers were largely unaware of the institutional credit sources and very few availed KCC credit facility as they found the paperwork cumbersome. Money lenders were the main source for credit. Farms are routinely raided by animals in the villages of the district, particularly nil gai. Most farmers reported selling their produce in local markets or to local traders. Ban in the sale of cattle for slaughter is causing farmers to abandon their unproductive cattle. These in turn are posing a serious threat to the standing crops. Most of the farmers rear buffalo and goats; rearing of cow has decreased in the recent years as the productivity of milk is lower. Few of the farmers have picked up poultry farming as well. Fodder supply is mainly from crop residue and is insufficient to feed the animals. Most farmers are buying fodder from markets. Cooperative dairies are present and most farmers sell their milk to these. Daily wage labour in nearby industrial complexes, mainly in stone cutting and polishing industry, was found to be the major source of income. In Alwar district, the main crops grown were Wheat, Bajra, Jowar, Arhar, Til, Dhencha, Sarson, Cotton, Vegetables. Agriculture was the primary source of income in the study villages. Farmers owning more than 15 bighas of land generated sufficient surplus to sell in the mandis. Proximity to the government regulated markets also added up to the ease of selling of produce at reasonable rates. NREGA was another major source of income. For irrigation, wells and borewells were reported as the main sources of irrigation in the villages. While seeds for sowing wheat are used from previous harvest, Bajra seeds are purchased from the market every year. A high rate of pesticide application was reported in cotton and vegetable crops. As in the case of Ajmer, a very low rate of institutional credit was found, and the key source of credit was the commission agent. Almost all farmers possess KCC but very few avail loans as the process is cumbersome. No farmer reported insuring their crop under the PMFBY. The availability and accessibility of water are a constraint. Destruction of crops by stray animals is widespread. Cooperative dairying was found to be quite active and most farmers reported selling milk at the local collection centres. Diversification in income sources was observed. Apiculture is a common practise. Livestock usually grazed and very few cases of stall-feeding were reported. Fuelwood, crop residue and dung cakes were found to be the primary sources of energy for cooking.

12

In arid Jodhpur, while every household reported owning land, the size varied across social classes.

Based on the land class size, majority of the farmers belonged to the marginal category. Kharif was

reported to be the primary cropping season and very few farmers reported cultivating their land

during Rabi. Drought resistant crops such as Bajra, Moth dal, Moong, Til, Guar and Jawar are grown.

Few households who have access to irrigation cultivate Rabi crops like Chana and Rapeseed-Mustard.

Share cropping was found to be prevalent. A primary reason cited for it was that the farmers having

less area of cultivable land have to keep their land fallow for some time in order to restore the natural

productivity. In turn, they lease-in land from farmers who have larger parcels of land. Both the

agriculture products as well as the crop waste is shared with the land owner in equal proportions.

Agriculture is largely rain-fed and wherever irrigation exists, the sources generally are borewells.

Digging of borewells is a major expense for these farmers and, since no subsidies are availed, very few

farmers possess these. Farming therefore is largely restricted to the kharif season.

Seeds usually are bought from the market. The use of hybrid seeds has picked up, particularly for bajra

due to higher yields. Access to institutional credit is very low and private money lenders are the

primary sources of credit. While farmers spoke about having KCCs, not many of them confirmed to

have availed its credit facility more than once. The reasons cited was that the repayment becomes

difficult given that most of the time it is used for purposes other than farming. None of the farmers

reported insuring their crops. Those who availed KCC loans never sought compensation for crop losses

as they were unaware of the entitlement.

Due to less land area and insufficient irrigation, very few of the farmers reported having a marketable

surplus during Kharif season and none in Rabi. Agriculture primarily caters to the food security of the

household. The nearest APMC is in Jodhpur (60 kilometres), however, none of the farmers sell their

produce there. Uncertain and irregular rainfall and crop destruction by stray cattle were mentioned

to be the major threats to agriculture. Compensation, if any, in case of crop losses was reported to be

a fraction of the total cost of inputs.

Every family in all four villages reported wage labour to be the main source of income. People are

usually engaged in stone mines where they receive about Rs. 300 to Rs. 400 per day. Working in mines

is more prevalent among the SCs, STs and OBCs. Some of the households migrate to Gujarat for cotton

farming. In such cases, the entire household migrate for the cropping season. Employment through

NREGA was reported to be one of the sources of income. However, its implementation was not found

to be uniform across all villages. Also, women belonging to the General category were reported not

engaging in NREGA works due to the prevailing social norms.

While milch cattle of all types were reared in the village, preferences towards rearing of goats and

sheep were observed in the villages. Cows and buffaloes are reared in very few numbers. Milk is

generally used for household consumption. Crop residue forms the primary source of fodder which is

not available during the summers and farmers have to buy it from the market.

In Udaipur district, two villages each were randomly selected from Girwa and Kotra block. The district

has a large proportion of Scheduled Tribes. While agriculture is done both in Kharif and Rabi in Kotra

due to availability of water, communities in Girwa cultivate only Kharif crops. Maize, Tuar, Chhola and

Urad are the main Kharif crops cultivated while Wheat, Chana and Cotton are grown in the Rabi

season. Vegetables are also grown depending on the availability of water, size of land (growing food

crops is seen as more important as it caters to the food security of the family) and preference of the

farmer.

13

Bt Cotton was found to be grown by almost every household in the two villages in Kotra block for seed

production. Despite huge risks to a good harvest, farmers opt for these varieties due to the ready

availability of agriculture inputs and credit which is delivered by agents from Gujarat in the village.

Households showed a marked preference for local varieties of seeds for food grains due to cultural

factors. In case of a bad harvest, the farmer has to purchase seeds from the market. Seed distribution

by the state government was not reported in any of the villages. The community buys fertilizers as per

their requirement from the market. Pesticides are rarely applied to food grains. Its use was reported

for Bt Cotton and vegetables.

While availability of water remains an issue in Girwa block, farmers in Kotra are limited by the financial

resource to invest in irrigation. Institutional credit was very low in all villages. Money lenders are one

of the biggest sources of credit. Villages closer to Gujarat border in Kotra Block are able to sell their

produce in markets across the state. Local markets and haats are unable to absorb all the production.

There is only one APMC in the district (in Udaipur city 116 km away) which is a major problem for

marketing by farmers.

Farmers in the two villages of Girwa Block reported no marketable surplus. Agriculture produce

sustains household food requirements. Households who have access to water grow vegetables which

are usually sold within the village or in the local market. Dairy products are usually for domestic

consumption with the exception of ghee which is sold within the village. Cooperative dairying was

absent.

Tendu leaves, honey and various other NTFPs are an important source of income in Kotra. Wage labour

in stone quarries is widespread in Girwa. Fuelwood and Dung cakes were primarily used for cooking

purposes. Short term Migration was prevalent in both the blocks where communities from Girwa

migrate to work as daily wage labourers and communities from Udaipur migrate to Gujarat to work as

share croppers. Employment under MGNREGA was absent.

The major constraints faced by farmers as reported in the primary survey were (a) crop damage due

to animals, (b) scarcity of water for irrigation, (c) inadequate knowledge about crop protection

methods, (d) access to institutional credit, (e) diseases and pests, climate variability affecting crop

production, (f) frequent droughts, (g) rising cost of inputs, (h) shrinking fodder resources, and (g)

quality of seeds.

Most of the farmers reported being not aware of the insurance schemes or the process of availing them. Some of them also reported the tedious paperwork as a deterrent for buying insurance. Delayed and miniscule compensation in case of crop loss also discourages farmers from investing in insurance products. None of the farmers in Ajmer reported having received their compensation on time for their crops insured while availing loans. Around 0.3 percent of the farmers in Jodhpur reported having received their compensation on time while it was 1.1 percent in Ajmer. Sale of wool which once used to be a major source of income has lost its value on account of falling prices of wool. Jodhpur reported the highest proportion of sale of wool followed by Ajmer and Udaipur. Decline in the demand for materials made of wool has been cited as one of the reasons for fall in the prices of wool. Camels used to fetch a good price to farmers which incentivised their rearing. However, after the ban on movement of camels outside the state, these have become more of a liability as a result of which people have started abandoning them. The households also shared that camels were used as collateral

14

for availing credit, a practise that has reduced considerably. Only one farmer among the sampled households across all four districts reported the sale of camel in the last one year. Coming to the state-level strategy for doubling of farmer’s income, this needs to be multipronged covering a range of options for the farm household. For a state like Rajasthan, any intervention in the agricultural sector must be aligned with rainfed agriculture. This must include three significant paradigm shifts: (a) need to enhance and make more effective and sustainable use of public investment in rainfed agriculture, (b) need to build capacities for location-specific, decentralized governance and knowledge systems for rainfed agriculture, and (c) need to shift from conventional “production per hectare” thinking as the sole measure of performance to an approach that can integrate livelihoods (agriculture and rural non-farm), availability and access to food, ecosystem and human health. For working on this paradigm, it is desirable to catalyse convergence of key government programmes relevant for rainfed agriculture such as MGNREGA, NRLM, MKSP, and RKVY that support natural resource management, local governance capacities, location specific technological and market development in rainfed agriculture. Some of the elements of sustainable rainfed agriculture have been around and also found a place in the planning and programming exercises. However, there is a need to embed these elements of this paradigm into a better configured and operationalized, especially at optimally decentralized administrative and bio-physical levels (block-level or agro-ecological sub-regions). For this operationalizing, conceptualization and measurement of variables like productivity, efficiency, integration and sustainability is required. Water is the key scarce resource under rainfed condition and among all Indian states, it is the foremost limiting in the case of Rajasthan. Improving the efficiency of water use has been taken up in the state by promoting micro-irrigation systems (drips and sprinklers). However, the problem is with the low level of penetration (9.1%) where barely 8.26 lakh hectares cumulatively was brought under MI by March 2015. In order to promote the application of technologies for improving water efficiency on a large scale, the investments under PMKSY needs to be increased from the current Rs. 120 crores to Rs., 2,700 crores annually for the next five years to achieve the full potential of micro-irrigation. There is need for moving away from area-specific interventions for improving water efficiency. What might pay a rich dividend is to identify water guzzling value chains and then work backwards to find solutions to improve efficiency. The demand for water can be most effectively managed by promoting a change in the cropping pattern in favor of less water-intensive crops. Wheat, rapeseed-mustard, and chickpea are widely grown rabi crops and together consume 58 percent of the state’s blue water. If the area under wheat and rapeseed-mustard is reduced and instead chickpea is cultivated, it results in enormous water saving. About 81 percent of area and 72 percent of food grain production comprised Jowar and Bajra. However, the prices received by millets do not compare favourably with wheat, which is a water guzzling crop and its cost of cultivation is higher as compared to millets. The reason for higher wheat prices is on account of a steady growth in MSP and procurement by the public sector. While MSP is announced for jowar and bajra, these are not procured. This keeps their prices depressed as compared to wheat. Paying enhanced MSP to procure Bajra and supply under PDS instead of wheat will directly translate to enhanced incomes of farmers. There is ample scope of increasing productivity of millets in Rajasthan and this can be achieved in a short period of time by learning from Madhya Pradesh. Also, Rajasthan can gain from the experiences of Karnataka and Odisha for introducing millets in the PDS. There are 2.03 crore ration card holders in the state. If the state government decides to supply five kilograms of Bajra to every ration card holder, it would require to procure around 1,200 thousand

15

tonnes, which is around 30 percent of what is produced in the state. Boosting the MSP to the levels of wheat will encourage farmers to produce more bajra and a guaranteed procurement at MSP will contribute to enhanced incomes of farm households. The impact on nutrition will also be significant. Adopting this strategy is a win-win for all. Markets for small ruminants are underdeveloped. The state has only two registered slaughterhouses, which indicates that most goats and sheep are traded live and slaughtered outside the state depriving farmers of the benefits of value addition. Value chains for small ruminants are yet to develop. A major challenge is the dispersion of smallholder producers which makes aggregation a challenge, and in a market dominated by intermediaries at the low end of a long value chain, the farmers are unlikely to secure a significant share of the value of the final product delivered to consumers. After poultry, mutton and goat meat are projected to have the fastest growth in market demand among all food commodities over the next 30 years. Rajasthan is uniquely placed to exploit this growth opportunity through strategic investments in improved breeds, feed and fodder, animal health, food safety and traceability systems, and promoting private investments in modern value-chains and processing (e.g., for meat, wool). On the supply side in dairying, the potential for yield growth is substantial: two thirds of the cowherd are indigenous breeds whose yields are less than half those of cross-bred animals; and yields of all animals could be significantly increased through better nutrition and healthcare. On agri-business and value chains, the major strength of Rajasthan’s food processing industry lies in the following: (a) Nutri-cereals- Pearl millet (Bajra) and other small millets, (b) Pulses- Green gram (Moong), Chick pea, Moth beans, (c) Seed Spices- Cumin, Coriander, Fenugreek, Ajwain and Fennel, (d) Medicinal crops- Psyllium (Isabgol), Indian Ginseng (Ashwagandha), Satawari, Aloe Vera, Senna (Sonamukhi), Indian Gooseberry, (e) Oilseeds- Mustard, Soybean, Groundnut, (f) Commercial crop- Cluster bean (Guar), (g) Livestock: Drought hardy milch breeds (Rathi, Gir, Sahiwal and Tharparkar; the population of the latter has reduced drastically), (g) Fruits: Mandarin and Kinnow, and (h) Vegetables (Tomato, green chilies, peas, onion, potato, cauliflower, carrot, cabbage, garlic). Despite this strength, Rajasthan has a limited presence in the processed food segment, which presents a case for capacity building and horizontal diversification in the higher value-added areas of ready to eat food, processed food, health and wellness food products and organic food products, all of which have a huge export potential. On marketing reforms, the first imperative is an effective implementation of the MSP policy. This

requires (a) delinking of MSP purchases from procurement targets, (b) advance arrangements

adequate number of purchase centres, handling logistics and timely payment to the farmers/ sellers,

(c) purchase operations should continue till the sellers offer their produce at MSP, (d) removal of

quantity cap on the seller which would encourage large farmers to aggregate from small farmers

especially in remote areas and thereby expand the benefits of MSP

For effective implementation of Market Intervention Scheme (MIS), there needs to be a well-

articulated institutional mechanism both at the central and state levels. Specifically, (a) the Centre

(MoAFW) should specify mandated commodities with scope for state and year-specific additional

commodities, (b) there should be an exclusive and dedicated nodal officer and cell at the Centre for

approval, and (c) a proactive stance is needed at the Centre to guide the state nodal agencies to come

up with timely proposals, process them speedily and revert to the states for timely interventions.

State and national-level agricultural outlooks on prices, supply and demand for agri-commodities is a

huge gap in planning. These outlooks need to be generated for both short and long periods.

16

Gautam et al (2017) rightly point out that “the current policies to promote agro-processing in Rajasthan, namely the Agri Processing & Agri Marketing Policy and the state’s Rajasthan State Industrial Promotion Policy, emphasize attracting large-scale investors but with a dual requirement. They require both a minimum scale of investment and a minimum number of employees. For instance, the Agro-Processing and Agri-Marketing Promotion Policy of 2015 states that “Enterprises with investment of Rs. 100 crores or more, or providing employment to at least 250 persons will now be eligible for availing customized package of incentives & concessions under RIPS 2014.” Yet, to succeed individual processing plants have become increasingly capital-intensive. The labour required in a modern, competitive plant is much more skilled, with little or no manual work. The requirements for the number of jobs created thus may be an impediment for a high-end processor, which may in fact eliminate much greater job creation prospects along the value chains that feed into the large processing plant.” They further emphasise, “this is because, for these large operations to be viable, they need to depend on reliable and efficient value chains. This can only come through a cluster of small- and medium-enterprises that add value at intermediate stages (where possible) which are likely to be more labour-intensive and thus have the potential to create more jobs than a single large processor might. The implication of this is that the state’s policies need to be geared towards attracting both large investors as well as large numbers of smaller entrepreneurs with facilities along the value chains and across the different production areas.” There therefore is a need to revisit these policies. India ranked 130 in the World Bank’s Ease of Doing Business Index out of 189 countries surveyed in the year 2016. An important component of this index is the ease of registering property which also seeks to capture the quality of land administration. India ranked 138th on this, an indication that this is one of the major reasons contributing to India's low ranking on the overall Ease of Doing Business index. It is estimated that land market distortions account for about 1.3 percent of lost annual economic growth and a very large number of land parcels in India are a subject of litigation. In this context, it has been suggested that conclusive titling be adopted as a way to reduce litigation and associated transaction costs and improve the “Ease of Doing Business”. Lack of clear land titles was cited as the main reason why farmers are unable to avail various entitlements including institutional credit. Work on this front needs to be expedited. While Rajasthan has made commendable progress in the coverage of farms under PMFBY, the survey results indicated that very few farmers are covered. A February 2017 speech by the NABARD Chairman underlined the challenges that need to be overcome for successfully implementing the scheme: (a) infrastructure for Automated Weather Stations, (b) mobilise farmers into “mutual relief associations”, (c) designation of individual farmers as the unit of claim settlement, and (d) expedited settlement of claims. All of these challenges were found unaddressed in the villages surveyed. It has been recommended that farmers ought to be mobilised into associations at the village, districts, and the state levels. The capital investment in the state annual budget needs to be enhanced (the 2017 budget shows a 20 percent less allocation over 2016). Extension services were found to be weak in the survey villages. The following weaknesses were

observed: (a) Less qualified grass-root extension personnel, (b) Staff tasked with activities other than

agriculture, (c) Over-lapping of extension efforts owing to multiplicity of extension agencies, (d)

Extension does not include allied activities like soil and water conservation, horticulture, animal

husbandry, poultry etc., (e) Ecology and silvi-pasture are rarely covered under extension activities, (f)

There is hardly any organic coordination between the Agriculture Department, Rural Development

Department (Soil & Water conservation & watershed) and KVKs (Research) at the field level for

transfer of technology. Only some classroom trainings are held., and (g) There is no feedback from the

17

field to make any timely correction. Farmer Field Schools is a proven approach worldwide which ought

to be explored for effective extension services to reach farmers.

18

2) BACKGROUND

1. As a response to increasing food insecurity in India after independence, the government initiated the Green Revolution to enhance food production at a rapid pace during the 1960s. This resulted in the country achieving self-sufficiency in food grains and, in recent years, substantial quantities of food grains are exported by India to a number of food-deficit countries. This increased production has also enabled India to operate one of the world’s largest subsidised food supply system for the poor households, pregnant and lactating women, and school going children. This progress in increased food production supplemented by safety nets has over the years also enabled India to reduce the numbers of hungry people despite adding many millions to its population. 2. The rapid increase in food production has been possible through a number of policy mechanisms. Providing a minimum support price and following up with procurement from farmers is an important instrument. Extending subsidies to key inputs like fertilisers, irrigation, power, etc. is another. Together, these have helped enhance incomes of farmers as well.

3. The efficacy of these instruments to enhance farmer’s incomes has however reduced over the years and there are several empirical studies that have reported large numbers of farm households subsisting on insufficient income. This in turn is reflected in the deepening of agrarian distress across several parts of the country. Increasing cost of cultivation, mounting indebtedness, static yield rates, lack of marketing opportunities etc. are some of the issues that are facing farmers. An extreme manifestation of this distress has been in the form of many thousands of farmers being driven to commit suicides. The government’s current vision and strategic interventions to transform Indian agriculture has been spelled out in 10 points (Figure 1).

Figure 1. Transforming Indian Agriculture

19

4. Seven key strategic interventions have been proposed. These are: i. Focus on irrigation with large budgets, with the aim of "per drop, more crop"

ii. Provision of quality seeds and nutrients based on soil health of each field

iii. Investments in warehousing and cold chains to prevent post-harvest crop losses

iv. Promotion of value addition through food processing

v. Creation of a national farm market, removing distortions and develop infrastructure such as

e-platform across 585 stations

vi. Strengthening of crop insurance scheme to mitigate risks at affordable cost

vii. Promotion of ancillary activities like poultry, bee-keeping and fisheries.

5. Further, the government has also responded by following the recommendations of National Commission on Farmers to measure progress by real income of farmers and not by gross production of agricultural commodities. In April 2016, an inter-ministerial committee was set up to study and recommend a roadmap for doubling the income of farmers. The broad mandate of the panel is to study the current income level of farmers and agricultural labourers, measure the historical growth rate of current income level and determine the required growth rate to double the income of farmers. The panel is required to come out with a detailed plan and its operationalisation. 6. Implementing the above strategies for doubling farmers’ income in five years requires a nuanced approach. There clearly are substantial gaps in the analyses that are currently available and this study will aim to bridge these.

7. Through a notification issued September 29, 2016, the Reserve Bank of India (RBI) highlighted the importance of the Government of India’s resolve to double farmers’ incomes. It tasked SLBC Convenor Banks and State Level Lead Banks to lay emphasis on improved capital formation in agriculture. Banks have been asked to revisit their documentation for crop loans, simplify them where required and ensure speedy sanctioning and disbursal of loans within specified time limits. Through the Lead Bank Scheme, banks are required to leverage inter-departmental/governmental coordination in financial sector to further the objective of doubling farmer’s income by 2022.

8. In order to successfully implement this strategy, lead banks have been advised to work closely with NABARD in preparation of Potential Linked Plans (PLPs) & Annual Credit Plans keeping the above strategy in consideration. Banks also need to include ‘Doubling of Farmer’s Income by 2022’ as a regular agenda under Lead Bank Scheme in various forums such as SLBC, DCC, DLRC and BLBC. For the purpose of monitoring and reviewing the progress, lead banks may use the benchmarks as may be provided by NABARD.

9. As the apex bank with a mandate to invest in agriculture and rural development, the role of NABARD to achieve the stated goal of doubling farm income is therefore critical. The research output of this proposal will provide a policy and implementation framework for the select districts and agro-climatic zones in Rajasthan that can be scaled up to feed into the State-level plan.

20

a) OBJECTIVES OF THE ASSIGNMENT

10. The study objectives encompass both micro (farmer level) as well as macro aspects of the study theme.

21

b) SCOPE OF WORK

11. Based on the objectives presented in section 2, the study covers the following aspects:

• Trend in income level of the farmers in the state (using both primary and secondary data).

• Composition of farm income, change in the composition, identification of factors affecting

diversification of farmer income and likely composition of income by 2022 (highlighting emerging

trend).

• Impediments confronted in farming business, diversification of farm activities, value addition,

marketing, price realization.

• Infrastructure limitations, requirements, mode of investments, potential partners.

• Policies that are hindering agricultural and allied sectors growth and modification required at state

level.

• Possible diversification of activities at farm level, Allied sector investments, integrated farming

activities, (record location specific case studies / innovations / initiatives observed).

• Skill requirement, technical knowhow, at farmer level for crop and activity diversification,

measures to overcome such impediments.

• The extent of distress confronted by the farmers in the study area, its frequency, and the

suggested risk mitigation mechanism.

• Major policy changes, institutions and quantification of investments required in thrust area such

as:

o Irrigation (especially on improving irrigation efficiency)

o Quality seed and soil health

o Warehousing, cold storages, other infrastructure

o Value addition though food processing

o Markets (integration with National Agriculture Market)

o Full coverage of new Crop Insurance and other risk mitigation measures

o Other investment in agriculture

• Convergence of schemes, activities, and stakeholders required, etc., at state level to learn and

unlearn from past experiences in the state.

• A detailed roadmap, highlighting action plan for each of the stakeholders, proper phasing of the

action plan, etc.

22

3) REVIEW OF LITERATURE

12. Although over two‐third of population are relying on agricultural sector for their livelihood, farm income related issues somehow did not receive adequate attention in the policy circle till late nineties (RS Deshpande, 2004), (Abhijit Sen, 2004). Serious deliberations on the issue of farm income and crop profitability have occupied the centre stage in the policy debates on agricultural sector especially from early 2000s. Experts across various quarters keep questioning on whether or not the income of the Indian farmers increased or are the farmers getting any profits from crops cultivation. 13. As a major step towards understanding and studying the nature and causes of widespread agrarian distress manifested acutely in the form of farm suicides and to find out whether reduced income is the major reason for increased indebtedness among farm households, the Union Government appointed the Expert Group on Agricultural Indebtedness under the Chairmanship of Prof. R. Radhakrishna (GOI, 2007). Following this, many researchers also conducted detailed field level studies in this direction and have reported that decline in productivity, supply constraints in institutional credit, market irregularities, etc., are the major reasons for the sudden spurt in agrarian distress (RS Deshpande N. P., 2006) (Vaidyanathan, 2006).

14. On, 28th February 2016 Prime Minister Narendra Modi while addressing a farmer’s rally expressed his commitment to double the income of the farmers by 2022. This was reiterated in the budget speech of the Finance Minister on February 29th who advocated exploring beyond food security and reorienting the government interventions in the farm and non-farm sectors to double the income of farmers by 2022. Prof. Ramesh Chand, Member Niti Ayog pointed out that what is sought to be doubled is the income of farmers, not output or value added or the GDP of the agriculture sector. If technology, input prices, wages and labour use could result in per-unit cost savings, then farmers’ incomes would rise at a much higher rate than the rate of increase in output.

15. Another very important source of an increase in farmers’ income is the relative increase in prices of farm products compared to non-agricultural commodities. Past estimates of farm incomes show a significant difference between growth in output and growth in farmers’ income. Between 2004-05 and 2011-12, agricultural output at constant prices increased by 34 per cent while real farm income per farmer increased by 63 per cent. In nominal terms, the output became 2.65 times while farmers’ income tripled in the eight-year period. Therefore, a doubling of farmers’ income should not be viewed as the same as a doubling of farm output (Chand, Why doubling farmers' income by 2022 is possible, 2016). 16. Correspondingly economist K.J. Kurian felt that farmer’s income can be doubled only with the cooperation of Gram Panchayats. He advocated that the focus should be on providing adequate support to the Rashtriya Gram Swaraj Abhiyan, empower the Sarpanch, Panch, especially women Panches. Substantial amount Rs.2.87 lakh crore has been allotted to panchayats and proper utilisation of these funds has to be ensured.

17. While few scholars such KJ Kurian and Dr. MS Swaminathan felt that doubling the farmer’s income by the year 2022 was possible, but some others expressed their doubts in being able to achieve it. Noted Economist Dr. Ashok Gulati expressed that until we can keep the food price inflation below 5-6 per cent and raise farmers’ nominal incomes by 12 per cent per annum, the objective cannot be achieved. Whenever it is talked about doubling the income it is in reference to the real income, so doubling real income in 6 years would be a miracle of sorts as it would imply a compound growth rate of 12 percent per annum. To enable this the government would require to substantially raise the MSP.

23

The other option to achieve this high growth momentum would require raising productivity and diversification into high-value agriculture as well as diversification of farm employment into non-farm activities. Raising productivity requires massive investments in R&D, irrigation and fertilisers.

18. The first policy paper on doubling farmers’ income from a lead authority in a government body was published by the Niti Aayog (Chand, Doubling Farmers' Income: rationale, strategy, prospects and action plan (Niti Policy Paper No.1/2017), 2017) in March 20171. This provided an indication on the current thinking among policy makers to achieve the objective. The paper reiterates the practicality of the strategy adopted in the 1960s to increase agricultural output for improving food and nutritional security through better technology and varieties, incentive structure in the form of remunerative prices for some crops, subsidies on farm inputs, public investments in and for agriculture, and facilitating institutions. The paper also points out that the strategy did not explicitly recognise the need to increase the incomes of farmers or promote their welfare.

19. The initiatives proposed under the policy paper include six areas, four within the agriculture sector and two externalities. Improving productivity, reducing the cost of cultivation, increasing cropping intensity and diversification towards high value crops are the contributing elements at the farm level. Moving farmers from farm to non-farm occupation and improving the terms of trade are the non-farm factors that can improve incomes of farmers.

20. A month after publication of this policy paper, the Niti Aayog came out with its “Three Year Action Agenda” (GoI, Three Year Action Agenda, 2017-18 to 2019-20, 2017) in April 2017. In its chapter “Agriculture: Doubling Farmers’ Income”, the think tank has proposed four immediate actions to sustain and accelerate agricultural growth: reform marketing policies and market interventions, raise productivity of land and water, land tenancy reforms, and improved relief measures in the event of natural disasters.

21. This chapter reviews the available literature on the broad areas of intervention and the implications on farmers’ income proposed by Niti Aayog. A separate section deliberates on international experiences in enhancing farmers’ income drawing upon lessons in China and Brazil.

a) Reforming Agricultural Produce Marketing Policies and Interventions

22. It is well recognised that the level of regulatory governance affects outcomes of the marketing system, which in turn can be expected to impact on economic growth of agricultural sector (Cullinan, 1999), (Bart Minten, 2012). (Acharya, 2004) pointed out that agricultural development is contingent upon efficient regulated marketing system. The regulatory framework for agricultural markets consists of two sets of measures. One, measures for the development and regulation of wholesale markets through Agricultural Produce Marketing Committee Acts in different states; and two, a series of legal instruments for regulating the functioning of markets and trade activities, such as the Essential Commodities Act (1955), Agricultural Produce Grading and Marking Act (1937), etc. (Chand, Development Policies and Agricultural Markets, 2012). 23. In response to the changes in trading environment during 1990s, the union government brought a series of reforms in quick succession, beginning from 2002. These included the Removal of (Licensing Requirements, Stock Limits and Movement Restrictions) on Specified Foodstuffs Order, 2002 and 2003. As per this order, wheat, paddy/rice, coarse grains, sugar, edible oilseeds and edible oils, pulses, gur, wheat products and hydrogenated vegetable oil or vanaspati were removed from the

1 The publication carried a disclaimer that the views are those of the author and do not necessarily reflect the views of the Niti Aayog or Government of India.

24

list of Essential Commodities Act (1955) and thereafter, a permit or licence was not required for their trading, storage and movement. Further, the prohibition on futures trading in agricultural commodities was removed in 2003. These were important reforms but they did not include reforms in agricultural marketing or transactions of farmers’ produce (Chand, e-Platform for National Agricultural Market, 2016).

24. A major distortion in APMC markets has been reported by numerous sources. For instance, (Sukhpal Singh, 2015) highlighted how farmers have become dependent on commission agents because of the intermediary culture propagated by the present APMC acts. Using data from their field study, the authors highlighted that almost 38 percent of Punjab’s total agricultural debt was channelled through non-institutional sources, the majority of which is usually financed by market intermediaries to the farmers.

25. In response, the Ministry of Agriculture came out with the model act called the State Agricultural Produce Marketing (Development and Regulation) Act, 2003, which was then shared with all the states for implementation. Some important provisions of the model act are:

a) more than one market can be established by private persons, farmers, cooperatives and

consumers in a market area;

b) there will be no compulsion on the growers to sell their produce through existing markets

administered by the Agricultural Produce Market Committee (APMC);

c) a new chapter on contract farming was added to facilitate and promote smooth progress

in contract farming;

d) provision made for the direct sale of farm produce to contract farming sponsor from

farmers’ field without the necessity of routing it through notified markets;

e) provision made for imposition of single point levy of market fee on the sale of notified

agricultural commodities in any market area and discretion provided to the state

governments to fix graded levy of market fee on different types of sales;

f) registration for market functionaries provided to operate in one or more than one market

areas; and

g) provision made for the purchase of agricultural produce through private yards or directly

from agriculturists in one or more than one market area (Chand, e-Platform for National

Agricultural Market, 2016).

26. The various problems facing the agricultural marketing system however persisted and were summarised by the Twelfth Plan Working Group on Agricultural Marketing (Planning Commission, 2011).

a) Too many intermediaries, resulting in high cost of goods and services;

b) Inadequate infrastructure for storage, sorting, grading, and post-harvest management;

c) Private sector unwilling to invest in logistics or infrastructure under prevailing conditions;

d) Price-setting mechanism not transparent;

e) Ill-equipped and untrained mandi staff;

f) Market information not easily accessible; and

g) Essential Commodities Act (ECA) impedes free movement, storage and transport of produce.

27. Various researchers have reported that the APMC Act, which was enacted to protect farmers’ interests and increase market efficiency and transparency, is now being used to deny them opportunities to get better prices, to prevent competition, and to guard the interests of middlemen. A serious consequence of selling at a designated place, the yard of a mandi, is that once agricultural produce has been brought to it, it is seldom taken back in the event of any unfair deal. The system of

25

having to go through regulated mandis also places small producers with less to sell in a disadvantageous position (Chand, Development Policies and Agricultural Markets, 2012). 28. In order to initiate meaningful reforms, the Ministry of Agriculture and Farmers Welfare has issued the model act “The State/UT Agriculture Produce and Livestock Marketing (Promotion and Facilitation) Act in April 2017 (GoI, 2017). The new model act aims at building a level playing field for both public sector and private sector players to enter into the domain of agriculture marketing. In addition to field crops, the act addresses marketing of multiple commodities including fruits, vegetables, flowers, spices, medicinal plants, livestock, poultry, fisheries etc. The act is designed to put in place a competitive marketing system to raise farmers’ income. The states have now been advised to modify their respective APMC acts and implement the new act to ensure uniform licence and single point levy of market fee. The government aims to integrate 585 APMCs under one electronic platform and set up a wholesale market at every 80 km (PTI, 2017).

29. In addition to marketing reforms, the Niti Aayog’s initiative is also targeted at reforming the price support policy. India’s agricultural price policy is aimed at intervening in agricultural produce markets to influence the level of fluctuations in prices and the price-spread from farm gate to the retail level (GOI 2010). The main instruments of agricultural price policy have been (i) assured prices to producers through the system of MSPs implemented through obligatory procurement, (ii) inter and intra-year price stability through open market operations, (iii) maintaining buffer stocks, and (iv) distributing food grains at reasonable prices through the PDS (Chand, Global Food and Financial Crisis: Experience and Perspective from India, 2008).

30. Assured prices appear to help the farmers for efficiently allocating the scarce resources among different crops (Schultz, 1964), (Acharya, Agricultural Price Policy and Development: Some Facts and Emerging Issues, 1997). Studies have analysed the effectiveness of MSP on raising farm income using the Cost of Cultivation Survey (CCS) data. (Gulati, 2012), while Chairman Commission for Agricultural Costs and Price, GoI, argued that a hike in MSP is necessary to get positive returns and also to propel the agricultural GDP. (Bhalla, 2012) counter argued a month prior that increasing MSP of paddy is “dirty economics and dirtier politics”.

31. Prior to both the above authors, (Mahendra Dev, 2010) focussed on the impact of MSP on farm income for examining the profitability of paddy and wheat in detail using CCS data from 1981‐82 to 2007‐08. The authors reported that the value of output has been more than the costs in both paddy and wheat throughout the period of analysis at the all India level. This finding underlines the significance of MSP for farmers’ income.

32. However, the price policy implemented in the last four and a half decades has mainly benefited wheat and rice among food grains and sugar cane and cotton among other crops. This has resulted in a shift of land and other resources away from pulses, oilseeds and coarse grains to wheat and paddy, which has created serious imbalances in the demand and supply of various agricultural commodities in the country. The second major criticism of the price policy is that a large number of crops and states are not covered by effective implementation of the MSP (Chand, Minimum Support Prices: Changing Requirements, 2003). The prices received by farmers are often below the MSP in a large number of crops and in a large number of markets where it is not supported by effective procurement (Planning Commission, 2007). The NSSO's (70th round) data for 2012-13 reveals that only six percent of total farmers in the country have gained from selling wheat and paddy directly to any procurement agency (GoI, 2014).

33. The Niti Aayog proposes to continue with the MSP system for need-based procurement. It also proses “Price Deficient Payments” (GoI, Three Year Action Agenda, 2017-18 to 2019-20, 2017),

26

which is defined as the difference between MSP and farm harvest price (Chand, Doubling Farmers' Income: rationale, strategy, prospects and action plan (Niti Policy Paper No.1/2017), 2017). Price deficiency payments are widely applied in US’ agriculture. Under the Agriculture Act of 2014 (also referred as Farm Bill 2014), the US federal government makes payments to producers to make up the difference between the market and reference prices (Office of the Federal Register (US), 2015). It may however be noted that as per the WTO Agreement on Agriculture, deficiency payments are deemed trade distorting and needs to be notified under the “amber box” (Schnepf, 2015).

b) Raising Productivity of Land and Water

34. The Niti Aayog suggests working on four key elements to boost productivity: improving irrigation cover and efficiency through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY); optimum seed replacement rates and a balanced application of fertilisers supported by the Soil Health Cards Scheme; application of technologies such as GM seeds, precision farming, SRI, improved R&D and extension; and diversification towards high value agriculture such as horticulture, animal husbandry, and fisheries (GoI, Three Year Action Agenda, 2017-18 to 2019-20, 2017). 35. Numerous studies corroborate that irrigation makes a significant contribution to productivity of crop and output (Dhawan, 1988), (A Vaidyanathan, 1994), (I Hussain, 2004), (A Narayanamoorthy, 2005). Irrigation enables farmers to crop more intensively, increase productivity through better varieties and biochemical technologies, reduced risks due to moisture stress to crops. Given the highly inelastic supply of land and reduced net sown area, the future growth of agriculture will have to heavily rely on irrigation facility as it allows for multiple cropping on the same piece of land.

36. In India, massive irrigation initiatives have been undertaken in past that have not really translated to desired results. According to a Reserve Bank of India (RBI) sponsored study, during 1991–2007, the country invested well over Rs. 2 Lakh Crores (at 2007 prices) in irrigation and flood control (Pulapre Balakrishnan, 2008). Yet, due to “deficiencies in planning, implementation and management,” the area served by government canals actually decreased by 3.8 million hectares during that period, and the study viewed this, as “a question of governance.”

37. An approach to overcome this was proposed by (Tushar Shah, 2016) seeking a reorientation of PMKSY to focus on two low-hanging fruits: first, quickly utilise 20-40 mha of already created canal irrigation potential that is awaiting utilisation; and second, improve the productivity of tube well irrigation by providing farmers quality power supply, for a fixed daily ration, during peak irrigation season to ensure that a maximum number of fields are covered. The authors opined that Madhya Pradesh (MP), which has in recent years demonstrated how to do this with great success, is an experience worth seeking lessons from and emulating across the country.

38. Irrigation however may not be the most important variable affecting agricultural growth. Using state level data for 1970-93 in India, (S Fan, Are returns to Public Investments Lower in Less-Favoured Rural Areas? An Empirical Analysis of India, 1999), (S Fan, Should Developing Countries Invest More in Less-Favoured Areas? An Empirical Analysis of Rural India, 2000) studied the relationship between government expenditures on agricultural research and development, irrigation, roads, education, power, soil and water conservation, rural development spending on agricultural growth and rural poverty. The study concludes that improved rural infrastructure and technology have all contributed to agricultural growth, but their impacts have varied by settings.

39. Fan further states, “Government expenditures on roads and R&D have by far the largest impact on poverty reduction and growth in agricultural productivity; they are attractive win-win strategies. Government spending on education has the third largest impact on rural poverty and

27

productivity growth. Irrigation investment has had only modest impacts on growth in agricultural productivity and rural poverty reduction, even after allowing for trickledown benefits” (S Fan, Should Developing Countries Invest More in Less-Favoured Areas? An Empirical Analysis of Rural India, 2000).

40. Soil health plays a key role in determining productivity of crops. The Niti Aayog points out that the commonly accepted 4:2:1 ratio as the optimal mix of N-P-K is not ideal and the right mix depends upon a variety of factors such as soil and crop type, and the availability of water (GoI, Three Year Action Agenda, 2017-18 to 2019-20, 2017). (Ramesh Chand, 2015) reiterates that the literature on balanced use of N, P and K shows that the so-called national level 4:2:1 norm, considered sacrosanct for India, lacks sound scientific ground and the norm is not relevant for the present agricultural situations.

41. (Ramesh Chand, 2015) further pointed out that surplus use of nitrogen and phosphorus exists in Andhra Pradesh, Assam, Haryana, and Punjab, and hence the nature of the imbalance in fertiliser use in these states is harmful, therefore the need to direct the states towards balanced use. Deficit use of all nutrients was noticed in Uttarakhand, Uttar Pradesh, West Bengal, Rajasthan, Maharashtra, Madhya Pradesh, Kerala, Jammu Kashmir and Chhattisgarh.

42. In order to address imbalanced application of fertilisers, the Ministry of Agriculture and Farmers’ Welfare launched the Soil Health Card Scheme in February 2015. The Scheme involves collecting soil samples from farmers’ fields, testing them, and provide recommendations of optimum fertiliser mix for crops to be grown by farmers (GoI, 2017). By March 2017, against the target of 2.53 crore soil samples, the States have collected 2.71 crore samples and tested 2.05 crore samples to print about 11 crore soil health cards (PIB, 2017).

43. Diversifying towards high value agriculture can potentially translate to enhanced incomes to farmers. Across the country, there has been a notable shift in consumption from cereals to HVA foods, particularly in rural areas. This helped boost employment, a potential boon for poorer farmers. HVA growth leads to changes across the agricultural value chain, from poor farms to investors in infrastructure to the modern retail sector.

44. However, diversification by small farmers toward high-value crops such as fruits and vegetables that can raise farm incomes significantly has been in question because of several reasons such as diseconomies of scale and lack of access to inputs such as capital and information. (Pratap Singh Birthal, 2013) analysed the evidence from India and concluded that diversification toward high-value crops exhibits a pro-smallholder bias. The smallholders however engage more in vegetables than in fruits cultivation. Thus, the paper’s most important finding is that the trend toward increased production of HVAs is pro-poor. Another study by (Devesh Roy, 2008) reiterated that smallholders did not face any bias while participating in the export of high value grapes through Mahagrapes in Maharashtra. 45. (Clare Narrod, 2009) pointed out that diversifying to high value agriculture is also influenced by access to developed country food markets and meeting stringent food safety requirements. Food retailers impose protocols relating to pesticide residues, field and pack house operations, and traceability. To enable smallholders to remain competitive in such a system, new institutional arrangements are required. In particular, public-private partnerships can play a key role in creating farm to fork linkages that can satisfy market demands for food safety, while retaining smallholders in the supply chain. Furthermore, organized producer groups monitoring their own food safety standards through collective action often become attractive to buyers who are looking for ways to ensure traceability and reduce transaction costs.

28

46. Distortions in international trade also influence diversification towards high value agriculture. (Manitra Rakotoarisoa, 2006) presented the case of the Indian dairy products which lack competitiveness due to distortions in world dairy markets. With less distorted world dairy markets, India could be competitive and would emerge as a net exporter of whole milk powder, benefiting dairy industries and milk producers in India.

47. Transfer of knowledge and appropriate technologies to farmers is critical for meeting the desired objective of enhancing productivity of land and water. The public-sector extension system in India has gone through a number of changes since independence. Still, a number of organizational performance issues hinder the effectiveness and efficiency of such systems. These include low staff numbers, low partnerships and continued top-down linear focus to extension. There are further issues related to financial management, organizational motivation like work culture and incentives, as well as partnerships between organizations.

48. The linkages between the two main public systems of extension at the state and district levels, ICAR and the state department of agriculture, are well known to be weak with rare partnerships (Rasheed Sulaiman A. H., 2005). Research agendas are not influenced by field extension experience and still focus largely on production technologies (Rasheed Sulaiman G. H., 2002). As (MN Reddy, 2006) notes, extension staff and farmers are passive actors, and scientists have limited exposure to field realities. Information flow in the public sector is supply-driven and not needs-based or area-specific (Raabe, 2008), so farmers see the quality of the information provided by the public extension staff as a major shortcoming (GoI, Situation Assessment Survey of Farmers: Access to Modern Technology for Farming (59th Round (January - December 2003), 2005). None of the initiatives will lead to the desired results unless this critical gap in agricultural extension is addressed.

c) Land Tenancy Reforms

49. Tenancy is an important institutional arrangement to organise production in Indian agriculture. Absence of a sound institutional framework facilitating land leasing had been viewed as a major obstacle for private investment in agriculture resulting in poor productivity. Growth of households who own land but do not cultivate it themselves is increasing (R Vijay, 2013). An implication of this is the potential for tenancy acquiring increasing importance in the rural sector. Despite the enactment and implementation of various tenancy laws, concealed tenancy continues to be widely prevalent (KN Nair, 2006), (Sharma, 2006), and liberalisation of the lease market coupled with adequate safeguards to protect the interests of small and marginal farmers would be a step in the right direction (Sharma, 2006). 50. Using secondary datasets from the Directorate of Economics and Statistics, Ministry of Agriculture and Farmers Welfare, MOSPI and NSS Surveys, (Murali DA, 2017) demonstrated that when the farm sector performed well during the green revolution period, there was an increase in the share of leased-in areas and households. However, the same declined during the post-reform period and revived in the mid-2000s. Interestingly, the share of pure tenants also increased in the revival period during 2005-2010. The authors also established that when the agricultural sector grew at a healthy rate, landless labour turned cultivators over a period of time whereby the “land hunger” of agricultural labour through the tenancy market is constraining the shift to high value crops. There also is evidence of actual leased-in holdings to be as high as 10%–50% of the operated holdings across states (A Gupta, 2016). This underlines the importance of tenancy reforms.

51. In this context, NITI Aayog had appointed an Expert Committee on Land Leasing, under the chairmanship of T Haque. The Committee published a report focussing specifically on the issue of land leasing (GoI, Raising Agricultural Productivity and Making Farming Remunerative for Farmers, 2015).

29

In the final report, the committee provides a Model Agricultural Land Leasing Act (GoI, Report of the Expert Committee on Land Leasing, Government of India, New Delhi, 2016).

52. The draft act includes various types of farmer groups like self-help groups, joint liability groups and farmer producer organisations as those who can lease-in land. It specifies that the lessor and the lessee shall enter into a written lease agreement for which it provides a model agreement; it also provides for an oral lease to be legal to protect the landowner. The price of the lease is to be mutually agreed upon the two parties, and it is also not mandatory to register the agreement, in the case of a written lease agreement, it may be attested by the village revenue officer or the sarpanch or the local bank officer or a notary with two witnesses. The expected value of produce can be used as a collateral by the tenant for accessing institutional credit.

53. In a critical examination of the proposed act, (Singh, 2017) argues that the model law ignores the diversity and dynamics of leasing arrangements in India and the socio-economic implications of the realities of tenancy practices. Allowing oral agreements defeats the purpose of secure tenure through written agreements. By not capping leasing amounts, there will be no checks on excessive amounts that are unjustifiably being charged across the country leading to an exploitation of tenants. The author further points out that the pledging of tenant’s share of produce for availing farm credit is unlikely to happen as the landowner exercises control over the produce in practice and may not cooperate with the tenant, as seen in the experience of the Andhra Pradesh Licenced Cultivators Act 2011. The draft act also ignores the emerging forms of tenancy such as water and labour tenancy in some parts of the country. 54. (Mani, 2016) opines that the draft act may encourage the diversion of agriculture land from crop cultivation to commercial use because it allows leasing of agricultural land for activities like plantation crops, animal husbandry and dairy, poultry farming, stock breeding, fishery, agroforestry, agro-processing and other related activities in addition to crop cultivation. Once agricultural land is transferred to allied activities, it will not only reduce the total land stock available for crop cultivation with an adverse impact on production of field crops but will also change the land-use pattern, if not permanently, at least for a very long period. The draft act also does not advocate a cap on land holding by individual tenants.

55. Land records are closely linked to the issue of tenancy rights and any meaningful reform will need to be based on accurate records. The problem of tenancy records and particularly the rights of sharecroppers is not satisfactory throughout India (Appu, 1975). It was during the Seventh Plan that two ambitious schemes called Computerisation of Land Records (CLR) and Strengthening of Revenue Administration and Updating of Land Records (SRA & ULR) were launched by the central government (GoI, Seventh Five Year Plan, 1985). These were merged to form the National Land Records Modernisation Programme (NLRMP) in 2008.

56. The policy objective under the NLRMP is to provide secure land title and property rights for facilitating the growth of land market. The land records modernisation has been approached in an apolitical manner and the problem of land records and management have been sought to be handled through a techno-managerial perspective (De, 2008). Two states that were quick to start digitisation of land records under the National Land Record Modernisation Programme have been Maharashtra and Telangana (Akhaury, 2016). The initiative is progressing albeit at a slow pace.

d) Improved relief measures in the event of natural disasters

57. The Pradhan Mantri Fasal Bima Yojana was initiated from the kharif season of 2016. This scheme replaced the National Agricultural Insurance Scheme (NAIS) and Modified National

30

Agricultural Insurance Scheme (MNAIS). The Weather-Based Crop Insurance Scheme (WBCIS) remains in place, though its premium rates have been made the same as in PMFBY. State governments have the authority to decide whether they want PMFBY, WBCIS or both in their respective states (GoI, Crop Insurance, 2016). The Scheme was allocated an initial budget of Rs 5,500 crore for 2016–17. 58. The Scheme envisages a uniform 2 per cent premium rate on sum insured for all food grains and oilseeds of kharif season, 1.5 per cent rate for rabi crops, and 5 per cent for annual commercial and horticultural crops. The sum insured is set equal to loan limit fixed by banks for the crop concerned which covers the estimated production cost. In case the actual yield of an insured crop in a particular village falls below the threshold (average of the last seven years excluding calamity years), the claim amount would be equal to the difference between the two divided by the threshold and multiplied by sum insured. The premiums are subsidised by the government and the scheme also promises speedy claim settlements through use of state-of-art technology, where payments will be settled within three weeks from receipt of the yield data (GoI, Crop Insurance, 2016).

59. As per the Niti Aayog, the Pradhan Mantri Fasal Bima Yojana requires reforms in four key areas (GoI, Three Year Action Agenda, 2017-18 to 2019-20, 2017). These are (a) instead of fixing the subsidy for insurance premiums on a percent basis, it ought to be capped on a per household basis to ensure that large farmers do not garner a bulk of the benefit, (b) insurance cover ought to be for a period of three to five years to ensure that both good and bad years are covered; otherwise, insurance companies may reduce the sale of premiums for seasons when adverse weather is predicted, (c) the subsidy on premium should be transferred directly to farmers so that they can choose the best insurance policy, and (d) improve competitiveness and efficiency by ensuring that at least two insurance companies sell premiums in a given area.

60. An assessment of the performance of the scheme was carried out by the Centre for Science and Environment (CSE, 2017) for the 2016 kharif season which pointed out several issues in its implementation. These are: (a) several states notified the scheme well after the sowing season in kharif 2016 which meant that

farmers could not avail claims for losses due to prevented sowing caused by deficit rainfall or

adverse seasonal conditions, which is covered under the scheme;

(b) premium was deducted by banks for non-notified crops which effectively meant paying a premium

without any insurance cover;

(c) farmers who took loans both from a bank and a cooperative were charged insurance premium

twice for the same crop;

(d) just 11.4 per cent farmers reportedly qualified for claims in its first cropping season;

(e) insurance companies lack the manpower and infrastructure to effectively carry out the scheme in

rural areas and there were cases across the country where the insurance company did not

investigate the losses and therefore did not pay for the claims; and

(f) there were delays in the claim process as several state governments are yet to pay their premium

to the insurance companies.

61. The report further pointed out the actuarial premium rates were very high that in turn translated a windfall to insurance companies. Citing figures released by the Insurance Regulatory and Development Authority of India, the report quoted the IRDA that the scheme played a significant role in the growth of non-life insurance industry in 2016– 17. The gross direct premium of general insurance companies grew by 32 per cent, from Rs. 96,376 Crore in 2015–16 to Rs. 1.27 Lakh Crore in 2016–17, of which nearly half came from crop insurance. 62. Notwithstanding the above, the report acknowledges that the scheme is farmer-friendly than its predecessors. It reduced the burden of premium on farmers significantly and expanded coverage.

31

It also promoted use of advanced technologies to estimate losses accurately and accelerate payments to farmers.

e) Enhancing Farmer’s Income – International Experiences

63. Among various countries, the experience of China and Brazil in enhancing the incomes of farmers in their respective countries stand out as both countries are major food producers and also have a vast agrarian population. 64. In the year 2014, China’s Ministry of Agriculture came out with the focus areas that could help ensuring national food security by strengthening domestic agricultural production and closing developmental gaps between rural and urban regions. It outlines the following initiatives to achieve these two core goals:

a) Improve China’s national food security system b) Intensify support and protection for the domestic agriculture industry c) Establish state mechanisms for sustainable agricultural development in the long term d) Deepen rural land reform e) Establish new forms of agriculture management f) Accelerate innovation in financial services for the agriculture sector g) Balance rural and urban development h) Improve rural governance

65. China is looking at ensuring national food security by dedicating a certain proportion of the country’s land to agriculture (especially farming grain) and improving the pricing and monitoring system for food and increasing safety standards and their enforcement. It is also planning to increase participation in international trade while strengthening cooperation with bordering countries in farming and agricultural development to augment China’s domestic food supply (Chen, 2014). 66. However, agriculture sector in China is facing major issues such as environmental challenges, including overuse of fertilisers and pesticides, soil erosion, soil pollution, water scarcity and the loss of agricultural biodiversity. Food safety is also a major issue plaguing the sector. This has led to a growing interest in sustainable food production in the country. There is a vital role for the state – particularly local government – in promoting sustainable agriculture initiatives. This can take a variety of forms, such as providing financial support for certification and organic inputs, attracting investment, mediating between farmers and enterprises, and providing training in marketing and ecological methods. 67. In light of the ageing rural population in China and in many other countries, it is crucial to attract young people back to rural areas, or to prevent them from leaving in the first place. Enabling farmers to earn higher incomes in rural areas is the key. Agribusinesses focussed on organic and green products have created new avenues for income generation. There has been an increase in resource deployment towards ‘participatory research’ on sustainable agriculture, particularly those approaches that are viable in the context of labour shortages and difficulties in accessing markets. This has also helped in integration of modern approaches with local knowledge (Cook, 2016). 68. Brazil is another major agriculture producer with a strong economy in Latin America. The country has made significant progress in poverty reduction since the early 2000s. Between 2004 and 2013, the proportion of the population living in poverty decreased from 22 per cent to 8.9 per cent. But since 2014 the country has been facing one of worst recessions in decades which is not expected to recede anytime soon. This makes it difficult to continue to decease poverty and inequality. One in four people in the region’s rural areas live in poverty.

32

69. A majority of the over 5 million farms in Brazil are very small. This small-scale agriculture, known as “family farming”, accounts for up to 70 per cent of some of the country’s staple food production, employs three quarters of the farm labour force and is responsible for one third of agricultural income (IFAD, 2016). Brazil’s agricultural policy objectives include the promotion of agricultural growth within the constraints of environmental objectives, and the design of specific policies tailored to the needs of poor farm and rural households. Brazil’s agricultural sector has contributed to reform and benefited from it. Through the 1990s, Brazil scaled down its expenditures on price support and subsidized credit; it deregulated markets for wheat, sugar cane and coffee; and it liberalized trade, not just on the import side, but also for exports, by eliminating export licenses, quotas and taxes.

70. There is strong intervention in the credit sector via interest rate subsidies and the requirement that banks allocate at least 29% of their demand deposits to agricultural lending. Brazil’s system of managed credit benefits recipients of subsidies and is of little consequence for larger farmers who can borrow on international markets. However, it imposes a burden on medium-sized farmers and other industries obliged to borrow domestically at market rates, and reforms would reduce the misallocation of resources and lower average rates.

71. Brazil also has undertaken a range of initiatives to address environmental concerns, and to adapt to and mitigate climate change. Moreover, environmental and sustainability criteria are now written into farm support programmes. These regulations are likely to have an increasing role, given the pace of output growth and the expansion of agricultural area in the Centre West. But weak infrastructure remains a major bottleneck to the development of Brazilian agriculture, since funding is low in relation to farm support and there is a need for deeper investments in transport networks and rural infrastructure (OECD).

33

4) METHODOLOGY

a) Rajasthan: physiography, soils and water resources

72. The study was carried out in Rajasthan, which is the largest State of Indian Union and spreads over 34.3 million hectares of land. It stretches to two of India’s major physiographic divisions, namely the Great Plains (Indian Desert) and Central High lands. The Aravalli range of hills, running from south-west to north-east, extending right up to Delhi, covers about 550 kilometres in Rajasthan and divides the state diagonally into two parts - the western arid region and the eastern semi-arid region. 73. The area east of the Aravalli falls in the northern part of the Central Highlands. It is also a major water divide (watershed line) between catchment streams flowing into Arabian sea and Bay of Bengal, respectively. It has a steep but discontinuous front of the Thar Plains in the west and a relatively gentle slope to the alluvial basins in the north and the east.

74. The area to the east of Aravalli hills is well drained by several integrated drainage systems, while the area to the west has only one drainage system of Luni river, in the south-eastern part of the desert. The central part of Aravalli, consists of an important basin of interior drainage, is gifted with the Sambhar salt-lake. The area is full of sand hills and a typical landscape with several low depressions.

75. The rivers of Rajasthan are rainfed, except the Chambal, and the quantity of water flowing in these rivers entirely depends on the quantum of rains received during the monsoon. The entire state is divided into 14 rainfed river valley catchments, with the Chambal catchment having maximum run-off followed by Mahi, Banas and Luni rivers.

76. The state has 10.4 percent of the geographical area of the country with 5.5 per cent of the population (56.5 million), however, it has only one per cent of the India’s total water resources, with the drawing potential of only 1.16 percent.

77. The average rainfall of the state is 580 mm. The coefficient of variation in rainfall is very high as the rain is less than 100 mm (1 mm to 100 mm) in Jaisalmer district. As one moves from south–west to northeast, the rainfall goes on decreasing. It is maximum on the Aravalli near Mt. Abu where it exceeds 1000mm.

78. In Banswara, Chittaurgarh, Jhalawar, Baran and Kota the rainfall varies between 901 mm to 1,000 mm. The highest Potential-Evapo Transpiration (PET) of 2,063.2 mm has been reported at Jaisalmer in the west and 1,745.2 mm in the east at Jaipur. The rainfall is the only source of water in the state, which is received from south-west monsoon which usually sets by mid-June and withdraws by September-end.

79. On an average, the number of rainy days in a year is about 29. The rainfall is not only low but erratic in nature with long dry spells, which affects plant growth adversely. In general, wind velocity of 1 to 19 km per hour for majority of days is experienced in the state. The maximum temperature ranges between 450C to 490C during May-June in western region, while the night temperature ranges between 230C to 260C. Variations of as much as 220C in maximum and minimum temperatures occur in many parts of the state. The average relative humidity is 60 to 66 percent, being a low of 50 percent in the west to about 70 percent in the east of Rajasthan.

34

80. The soils of Rajasthan are complex and highly variable, reflecting a variety of different parent material and physiographic land features. The soils in western region are light and coarse textured whereas the soils in eastern parts are heavy and clayey in texture. The soils of the state have been categorized into five specific orders, viz. Aridisols, Alfisols, Entisols, Inceptisols and Vertisols. All the soils have been identified into 22 soil series for particular characteristic and problems.

81. Due to scarcity of surface water in the State, it depends on ground water resources to a great extent. The ground water development/ exploitation is very high in the eastern as compared to the western region. The annual groundwater recharge is relatively less in the western part of the state, largely owing to very low and erratic nature of the rainfall, absence of surface water sources and high evapotranspiration. The depth of water varies widely throughout the state and varies between 10m to 25m and 20m to 80m in eastern region to western region, respectively. As per the April 2016 report of the State Groundwater Department, it has been estimated that over 82 percent of the State has come under water level depletion zone during the period 2008-09 to 2012-13. Ground water resources for this period reveal that out of 248 blocks in the state, only 44 blocks come under “Safe” category, 28 (semi-critical), 9 (critical) and 164 are over exploited) category.

b) Agro-climate and Agro-economic Zones of Rajasthan

82. For developing any sustainable plan for agriculture and allied subjects, it is essential that agro-climate conditions of an area are known. This will ensure scientific planning based on available natural resources on which improved production technology can be imposed. Earlier, Planning Commission (1988) delineated the whole country into 15-broad agro-climatic zones. Rajasthan covered four of them. These were further refined into 10 as under (see Figure 2): I. Arid Western Plains - Barmer, parts of Jodhpur. II. Irrigated North Western Plains – Ganganagar, Hanumangarh. III. Hyper Arid Partially Irrigated Western Plains- Bikaner, Jaisalmer, parts of Churu. IV. Transitional Plains of Inland Drainage - Nagaur, Sikar, Jhunjhunu, parts of Churu. V. Transitional Plains of Luni Basin - Jalore, Pali, parts of Sirohi, Jodhpur. VI. Semi- arid Eastern Plains - Jaipur, Ajmer, Dausa, Tonk. VII. Flood - Prone Eastern Plains- Alwar, Bharatpur, Dhaulpur, Karauli, parts of Sawai Madhopur. VIII. Sub- Humid Southern Plains & Aravali Hills- Bhilwara, Rajsamand, parts of Udaipur, parts of

Chittaurgarh, parts of Sirohi. IX. Humid Southern Plains- Dungarpur, Banswara, parts of Udaipur, parts of Chittaurgarh. X. Humid Southern Eastern Plains- Kota, Baran, Bundi, Jhalawar, parts of Sawai Madhopur. 83. Since socio-economic factors directly influence agricultural production, the Planning Commission in its Report of the Committee on “25 years Perspective Plan for the Development of Rainfed Areas” (1997), divided the country into four agro-economic zones based on certain agro-economic characteristics like level of land productivity, incidence of rural poverty, etc. These are as under: Zone-1: Areas with relatively high productivity, with either high levels of irrigation or highly assured

rainfall and low incidence of poverty: No area of Rajasthan comes in the zone.

Zone-2: Areas with relatively low productivity, high rainfall, low level of irrigation and high incidence

of poverty-Chittorgarh and Jhalawar.

Zone-3: Areas with low productivity, low rainfall and high incidence of poverty-Ajmer, Alwar,

Banswara, Bharatpur, Bhilwara, Bundi, Dhaulpur, Dungarpur, Sri Ganganagar, Jaipur,

Jhalawar, Kota, Pali, Sawai Madhopur, Sirohi, Tonk and Udaipur.

35

Zone- 4: The desert districts Potential development areas for each of the zone and districts have been

identified which could be integrated with district development plans, particularly related to

agriculture sector.

Figure 2. Agro-climatic Zones of Rajasthan

c) Sampling Methodology for Analysing Farmer-level Objectives

84. Rajasthan is India’s largest producer of mustard, pearl millet (bajra), and three spices (coriander, cumin, and fenugreek), cluster beans, isabgol and it is the second largest producer of maize. The state has a substantial area under vegetable crops. It is also having the second largest herd of livestock amongst Indian states contributing about 10 percent of the country’s milk and 30 percent of mutton production. The diversified cropping pattern and the presence of livestock as a major livelihood source has helped the state in managing the wide range of risks associated with dryland agriculture. 85. In order to analyse the state of farmers and farming, data and information obtained from a sample survey was employed. A multi-stage sampling design was adopted for collecting this primary information.

86. In order to suitably represent the ten agro-climatic zones in the sample design, these were organised into four classes that have common features on moisture regimes and climate (Table 1):

36

Table 1. Distribution of Districts among Agro-climatic zones

Arid and Hyper-Arid western and Semi-Arid Eastern Plains

Irrigated North Western Plains and Flood-Prone Eastern Plains

Transitional Plains Sub-humid and Humid Plains and Aravalli Hills

Barmer Ganganagar Nagaur Bhilwara,

Jodhpur Hanumangarh Sikar Rajsamand

Bikaner Alwar Jhunjhunu Chittaurgarh

Jaisalmer Bharatpur Churu Sirohi

Churu Dhaulpur Jalore Udaipur

Jaipur Karauli Pali Dungarpur

Ajmer Sawai Madhopur Sirohi Banswara

Dausa Jodhpur Udaipur

Tonk

d) Sampling Stages

87. First stage: One district from each of the above four classes was purposively selected and proposed for the sample survey. These were Ajmer, Alwar, Jodhpur and Udaipur. 88. Jodhpur represented the district which falls under “distress zone” as it is prone to drought every three years which directly impacts crop and livestock production and related farm-based rural livelihoods. A substantial number of farmers in Alwar have access to irrigation facilities, mainly ground water, and therefore this district was selected to capture this dimension. Ajmer is close to urban centres and farmers grow cash crops. Udaipur, on the other hand, is predominantly a tribal district with very low handholding size. Purposive selection of these four districts were therefore carried out to form a representative sample for the ten agroclimatic zones in the state. 89. Second Stage: For each of the four districts, a complete enumeration of villages was obtained from Census of India (2011), and the second stage of the sampling design included random selection of four representative villages from this list.

90. Third Stage: For each of the four villages, a complete list of households and size of holding obtained. This stage of stratification was based on the gender of the head of the household, where male and female headed households were segregated.

91. Fourth Stage: In the final stage, the male and female headed households were stratified based on holding size viz. marginal, small, medium and large, and 200 farm households were selected randomly based on probability proportional to size. Care was exercised to select at least ten percent female headed households, wherever their numbers exist on ground.

92. A total of 862 households were covered under the sample survey. The distribution of the sampled household is presented below: District Ajmer

Category/ village

Amritpura Devgarh Peeplaj Bhawanipura Ranisagar

Total Male Female Male Female Male Female Male Female Male Female

37

<1 ha 15 6 22 3 23 15 14 9 11 7 125

1-2 ha 4 1 11 0 4 3 9 5 20 8 65

>2 ha 0 0 8 2 2 1 9 2 0 2 26

Total 19 7 42 5 29 19 32 16 31 17 217

District Udaipur

Category/ village

Jhapla Mordhungri Medi Budia

Total Male Female Male Female Male Female Male Female

<1 ha 30 20 43 8 43 5 45 194

1-2 ha 2 0 1 0 4 0 2 5 14

>2 ha 0 0 0 0 0 0 0 0 0

Total 32 21 44 8 47 5 47 5 209

District Jodhpur

Category/ Village Tolesar Judia Doongerpura Ratanpura


<1 ha 27 11 7 6 7 15 18 13 104

1-2 ha 6 4 25 5 18 7 9 3 77

>2 ha 1 3 5 4 19 6 6 3 47

Total 34 18 37 15 44 28 33 19 228

District Alwar

Category/ Village

Khedia Meokheda Peeproli Dusrakheda


<1 ha 34 15 31 13 34 7 35 9 178

1-2 ha 0 0 4 1 7 0 6 2 20

>2 ha 3 0 3 0 4 0 0 0 10

Total 37 15 38 14 45 7 41 11 208

93. A well-structured schedule was designed for collection of data and information. These cover the following aspects: personal details, demographic status, land holdings, cropping pattern and crop yield, use of inputs for farm production, marketing/ disposal of produce, access to credit/ finance, constrains faced in farming and marketing, adoption of coping strategies, allied activities undertaken, formation of groups, miscellaneous issues. 94. Appropriate mathematical and statistical tools were applied to: a. Estimate the current income level of farmers in the state and its composition (in various agro-

climatic zones, holding size-wise, social class wise, etc.).

The net farm income was derived residually. Net cash income was derived by subtracting

operating expenses (costs incurred by farmer for goods and services used in the production

38

of agricultural commodities) from farm cash receipts (revenues from sale of agricultural

commodities plus payments received from various sources, such as insurance claim).

The methods of costing adopted in the study are the same with some minor modification as

commonly used in Farm Management Studies. The Farm Management Studies used three

concepts of costs and income. The first concept used is Cost A2 which normally include cost

of hired human labour, cost of owned and hired animal labour, seed and manures (both

purchased and farm grown), fertilizer, pesticides and insecticides, irrigation charges,

depreciation on and maintenance of owned agricultural implements and machinery, interest

on working capital, land revenue and other taxes, paid rent on lease in land and miscellaneous

expenses. The Cost C includes imputed value of rent on owned land and imputed wages for

family labour and interest on fixed capital.

We applied the modified form of Cost A2 which included all out-of-pocket expenses on the

purchase of inputs including hiring of human and bullock labour and machinery and the rent

on land taken on lease and expenses on minor repair. The net income was estimated at

aggregate level. The analysis was thus related to productivity of individual crops in physical

term and net income per hectare in value terms in rupees.

In addition, income from other sources – income derived from wage-paying activities and self-

employment in commerce, manufacturing and other services - were also computed to work

out the overall income of farm households.

Differences in productivity and income in terms of input used are explained through

descriptive analysis based on primary survey. The inter-holding size disparities were studied

in their (a) productivity (total and crop-wise), (b) farm income, (c) incidence of poverty, (d) use

of various inputs required in farming, and (e) use of agricultural support services.

b. Understand constraints faced by the farming community (including the distress situations,

their frequency) that are limiting opportunities to income enhancement of the farmers.

c. Study the constraints, possibilities and supports required for diversification of activities at

farmer level, especially towards allied, off farm and non-farm activities.

These constraints (b and c above) were identified using participatory approach and utilising

preferential ranking technique. Indicatively, three problems were focussed upon viz. agro-

ecological constraints, technological constraints and socio-economic constraints for

understanding the reasons that impact agricultural production and thereby determine income

of farmers; this in turn was useful to identify suitable solutions for overcoming the constraints.

The major constraints were first identified through a small pilot study in the villages. The

intensity of these identified constraints in the actual field situation were measured to validate

them and work out the extent to which they are perceived by farmers as constraints in

agricultural production and thereby incomes. Farmers also ranked the constraints they

perceive as influencing/ limiting agricultural production in an order of preference.

The data thus collected was tabulated and statistically analyzed to interpret the results. The

quantification of data was done by first ranking the constraints based on the responses

39

obtained from the respondents and then calculating the Rank Based Quotient (RBQ) using

Sabarathnam (19882) methodology:

𝑅𝐵𝑄 = 100 = ∑ 𝑓𝑖(𝑛 + 1 − 𝑖)

𝑁 ∗ 𝑛∗ 100

Where,

fi = number of farmers reporting a particular constraint under ith rank

N = number of farmers

n = number of constraints identified

i = rank of the attribute

d. Estimation of farm economics and financial requirement (including bank loan) to double

farmer’s income (by 2022) and strategies to meet their financial requirement.

This involved the computation of costs of and returns to agricultural enterprises. Detailed cost

of production estimates and projections were prepared based on the primary data. This was

followed by preparing a projected budget based on the various crop and livestock practices at

the farm level. A similar exercise was carried out for computing the returns and projection of

such returns. The quantum of investments required to increase the returns to double the

current level was next computed. These numbers were then utilised to suggest investment

strategies for farmers to double their income in five years.

Information on public investments in agriculture and allied sectors are readily available and

were factored in to work out the quantum of resources allocated to these sectors.

There has been increasing evidence showing that farm households in India rarely rely on

agriculture alone, but often maintain a portfolio of income activities in which off-farm

activities are an important component. Broadly, two main factors drive diversification into off-

farm activities among farm households, which can be classified into “pull factors” and “push

factors”. Reasons why a farm household can be pulled into the off-farm sector include (a)

higher returns to labour and or capital; and (b) the less risky nature of investment in the off-

farm sector. The push factors that may drive off-farm income diversification include: (a) the

need to increase family income when farm income alone cannot provide sufficient livelihood;

(b) the desire to manage agricultural production and market risks in the face of a missing

insurance market; and (c) the need to earn income to finance farm investment in the absence

of a functioning credit market. These aspects were studied in detail during the primary survey.

e. The extent of assistance from Central/State/PRIs being received by the farming community

and hindrances in getting the benefits, if any.

In addition to the information collected during primary survey, different groups were

consulted for collection of information on this parameter. These included (but not be limited

to) farmers, extension service delivery personnel, Krishi Vigyan Kendras, APMCs, Agricultural

Universities, State Agricultural and allied Departments, and local Civil Society Organisations.

2 Sabarathanam, V.E. 1988. Manuals of Field Experience Training for ARS Scientists. NAARM, Hyderabad

40

f. Supports / facilities / policy etc. required that could enable to double income by 2022

(farmer’s view).

A detailed analysis of the data and information collected from farmers was utilised for

identifying the supports, facilities and appropriate policies that are required to double the

income of farmers by 2022.

e) Macro-level Objectives

95. As per the Terms of Reference, these will include the following: a. Evolve a state specific strategy for doubling the income of farmers taking into account farmers’

needs and the constraints faced in the state.

b. Suggest broad sector specific interventions (especially on Irrigation, Soil health, Warehousing,

cold-chains, Value addition, Marketing, Allied activities, Non-farm/Off farm sectors, Wage

employment, etc.) to be implemented with appropriate phasing.

c. Study the trend in investment in major sectors (especially infrastructure), and suggest

investment requirements, year wise phasing and expected outcomes.

d. Major development partners in the state, suggestive partnership, stake holders, channel

partners in the endeavour and their extent, involvement suggested and convergence

required.

e. Road map/ action plan with implementing agency/stakeholder for each intervention.

96. The macro-level objectives were met through analysis of secondary data and literature, supplemented by the analysis of primary data. Bulk of the data on the above parameters was been sourced from the state capital – Jaipur. These were supplemented by data/ information available with various Central Ministries/ Departments viz. Directorate of Economics and Statistics of the Ministry of Agriculture and Farmer’s Welfare (production, cost of cultivation, Schemes/ Missions, Crop Diversification, etc.), Ministry of Finance (investments), Reserve Bank of India (credit) Union Budget (Schemes/ Missions + investments), Ministry of Labour (wages), Ministry of Food Processing, Ministry of Statistics and Programme Implementation (NSSO SAS data and reports), etc.

f) Analytical Framework

97. The analytical framework of the report includes analysis of primary and secondary data, information and literature. In order to calculate the income of farmers, study the constraints, estimate the financial requirements and understand the extent of assistance from Central/State/PRIs, 2016-17 has been used as the reference year for recall. The trend in income level of the farmers in the state and its composition includes income from non-farm sources as well. 98. A balanced view of the macro-level objectives was evolved through the study. Focus Group Discussions were important to understand the constraints, distress issues, possibilities, and requirements of farmers to double the income by 2020. However, in cognizance of the time and the scope of work, these FGDs were limited to certain critical groups such as farmer groups, extension service delivery personnel, Krishi Vigyan Kendras, ATMA, Agricultural Universities, State Agricultural and allied Departments, and local Civil Society Organisations.

99. A key challenge was computing trend in income levels. There are no comparable time-series data sources on incomes of farmers across the country. The approaches undertaken till date have

41

been based on data generated by the (a) Net Domestic Product, (b) Situation Assessment of Farmers Survey of NSSO, (c) Cost of Cultivation Survey.

100. The Net Domestic Product methodology was applied by (Ramesh Chand, 2015) to compute farm income levels for a period of 30 years. While the same methodology can be applied to State-level data for Rajasthan, it does not take into account income from non-farm sectors and salaries. The methodology therefore does not fulfil the requirement of the study which is to work out the trend of change in farmer’s incomes.

101. The Cost of Cultivation Survey of the Directorate of Economics and Statistics is another data source which was applied by (Abhijit Sen, 2004). However, this data generates crop-wise income details. While this can be customised to work out farm household income levels for particular crops in Rajasthan (the state is covered under the CCS survey), the results may not be reliable as (a) incomes from crops other than the 25 covered under CCS will be accounted for, and (b) income from livestock and non-farm businesses are not covered.

102. The most widely used data source for computing change in income levels of farmers is the SAS data of NSSO (SAS 2003 and SAS 2013). However, there are comparability issues with the two data series, especially in the case of changed definitions of key parameters, as has been pointed out by (Kumar, 2016): (a) inclusion of households not possessing land in the definition of farmers, (b) shift from “farmer” to “agricultural production unit”, (c) cut off value and exclusion of households, (d) Biased results due to exclusion, and (e) Wage and salary incomes clubbed together.

103. Given the above, expenditure was used as a proxy for income, and the various NSS consumer expenditure surveys were applied to work out the trends.

a. Trend in income level of the farmers in the state (using

both primary and secondary data).

SAS 2013 was used for computing

farmer’s income at the state level.

In addition, data from primary

survey will be used to work out the

income during the year 2016-17.

Expenditure has been used as a

proxy for income and NSSO

expenditure surveys have been

employed to compute expenditure

and thereby work out the trend.

b. Composition of farm income, change in the composition,

identification of factors affecting diversification of

farmer income and likely composition of income by 2022

(highlighting emerging trend).

Both primary and secondary data

were used. See 1 above on

computing income trends.

c. Impediments confronted in farming business,

diversification of farm activities, value addition,

marketing, price realization.

Using primary data and applying

RBQ methodology described

above.

42

d. Infrastructure limitations, requirements, mode of

investments, potential partners.

Secondary data on available

infrastructure were further

analysed using primary data.

e. Policies that are hindering agricultural and allied sectors

growth and modification required at state level.

Using primary and secondary data

and information supplemented by

interviews with lead policy

analysts/ policy makers in the

State and the Centre.

f. Possible diversification of activities at farm level, Allied

sector investments, integrated farming activities,

(record location specific case studies / innovations /

initiatives observed).

Mainly using primary data and

information; focussed group

discussions; discussions with State-

level functionaries.

g. Skill requirement, technical knowhow, at farmer level

for crop and activity diversification, measures to

overcome such impediments.

Using primary data and

supplemented by secondary

literature

h. The extent of distress confronted by the farmers in the

study area, its frequency, and the suggested risk

mitigation mechanism.

Using primary data, supplemented

by secondary literature, and

discussions with State-level

functionaries

i. Major policy changes, institutions and quantification of

investments required in thrust area such as:

• Irrigation (especially on improving irrigation efficiency)

• Quality seed and soil health

• Warehousing, cold storages and other infrastructure

• Value addition though food processing

• Markets (integration with National Agriculture Market)

• Full coverage of new Crop Insurance and other risk

mitigation measures

• Other investment in agriculture

Mainly using secondary data

supplemented by primary survey

and discussions with State and

Central level functionaries and

policy analysts.

j. Convergence of schemes, activities, stakeholders

required, etc., at state level to learn and unlearn from

past experiences in the state.

Secondary literature

supplemented by discussions with

State and Village level

functionaries

k. A detailed roadmap, highlighting action plan for each of

the stakeholders, proper phasing of the action plan, etc.

Applying the findings of all the

above

43

5) INCOME AND INVESTMENT REQUIRED TO DOUBLE FARMER’S INCOME

a) Estimating Farmers’ Income

104. The numerous issues with comparing farmers’ income using NSS data has been elaborated in the sections on Methodology and Review of Literature. The definition of a farm household between the two NSS survey datasets is not comparable. The Cost of Cultivation data used by Prof. Abhijit Sen does not cover all crops, while the Net Domestic Product methodology of Prof. Ramesh Chand does not take into account income from non-farm sectors and salaries. 105. An alternate is therefore proposed: using consumer expenditure as a proxy for income using NSS Consumer Expenditure Survey data. The following emerges for Rajasthan from the NSS 55th, 61st, 66th and the 68th Rounds of survey on Monthly Personal Consumer Expenditure (rupees).

Figure 3. Monthly Personal Consumption Expenditure (Rs)

Source: Author’s calculations using NSS Expenditure Survey data (55th, 61st, 66th, 68th Rounds)

106. As is apparent from Figure 3, the expenditure pattern in the state follows the national trend. However, in the case of Rajasthan, the levels of consumption for both general and farm households are higher than the national averages. This is a possible indicator that the income levels in the state are higher as compared to the national average. Table 2 details out the pattern of expenditure across the districts in Rajasthan. 107. The Consumer Price Index for Agricultural Workers-New Series with base year 2011-12 was used for calculating MPCE at constant price. In order to extrapolate the MPCE values, both linear and log-linear models were applied. The results are presented in Table 3.

44

Table 2. District-wise Monthly Personal Consumer Expenditure (Rs.) in Rajasthan

55th Round 61st Round 66th Round 68th Round

District Name MPCE (Farm Household

MPCE (ALL)

MPCE (Farm Household

MPCE (ALL)


MPCE (ALL)


MPCE (ALL)

Ganganagar 712 718 653 673 1189 1172 1639 1690

Hanumangarh 579 621 1146 1123 1552 1644

Bikaner 507 528 601 573 804 782 1355 1252

Churu 559 584 645 731 1083 1119 1398 1496

Jhunjhunun 701 649 804 756 1429 1332 1986 1878

Alwar 527 518 684 681 1263 1180 1902 1687

Bharatpur 523 500 640 600 887 789 1350 1248

Dhaulpur 442 478 827 744 1444 1218 1292 1286

Karauli 540 539 881 826 1199 1267

Sawai Madhopur 467 465 516 562 872 884 1517 1555

Dausa 647 636 593 565 1158 1087 1549 1567

Jaipur 633 631 650 617 1056 1056 1541 1577

Sikar 667 659 565 593 1147 1131 1847 1716

Nagaur 600 594 567 548 929 957 1493 1432

Jodhpur 558 573 570 537 1106 1057 1457 1486

Jaisalmer 562 589 486 502 1025 1031 1412 1341

Barmer 469 486 528 552 1048 1063 1455 1428

Jalor 514 498 516 523 1203 1171 1623 1618

Sirohi 442 472 534 505 901 890 1104 890

Pali 582 577 500 504 1170 1155 1382 1572

Ajmer 596 577 612 644 1020 940 1534 1585

Tonk 649 646 516 494 1108 1071 1484 1388

Bundi 489 501 571 595 816 860 1198 1269

Bhilwara 425 459 588 632 1151 1042 1529 1468

Rajsamand 482 485 722 690 1085 946 1255 1275

Udaipur 484 471 583 546 972 1129 1124 1059

Dungarpur 477 473 487 535 905 919 1038 926

Banswara 448 468 439 423 843 919 1174 1302

Chittaurgarh 500 529 622 640 1021 1021 1113 1278

Kota 516 505 543 541 1060 1139 1420 1454

Baran 567 547 632 626 902 978 1422 1497

Jhalawar 438 426 500 498 864 860 1446 1310

Source: Authors’ calculations using NSS Expenditure Survey data (55th, 61st, 66th, 68th Rounds)

108. The Residual Standard Error for the log-linear model was 0.005, and 0.009 for the linear model. In both cases, the estimates are well within 99 percent confidence interval. The log-linear model appears to be marginally more robust. It can be seen that while nominal MPCE is projected to double by 2024-25 (a year beyond the DFI target), in real terms, it will take an additional year for the log-linear model. However, if the income follows a linear trend, the time period for doubling both nominal and real incomes will take much more time: 2030-31 and 2032-33, respectively. This is why incremental investments are essential to enhance farmer’s income.

45

Table 3: MPCE Projection

MPCE Farm (Constant) MPCE Farm (Nominal)

Year Linear Model

Log-linear Model

Linear Model

Log-linear Model

2012-13 1,605.23 1,605.23 1,634.57 1,634.57

2013-14 1,743.46 1,756.48 1,802.14 1,821.28

2014-15 1,881.69 1,921.99 1,969.71 2,029.32

2015-16 2,019.92 2,103.09 2,137.28 2,261.12

2016-17 2,158.15 2,301.26 2,304.85 2,519.40

2017-18 2,296.38 2,518.10 2,472.42 2,807.18

2018-19 2,434.61 2,755.37 2,639.99 3,127.83

2019-20 2,572.84 3,015.00 2,807.56 3,485.11

2020-21 2,711.07 3,299.09 2,975.13 3,883.20

2021-22 2,849.30 3,609.95 3,142.70 4,326.77

2022-23 2,987.53 3,950.10 3,310.27 4,821.00

2023-24 3,125.76 4,322.30 3,477.84 5,371.68

2024-25 3,263.99 4,729.58 3,645.41 5,985.27

2025-26 3,402.22 5,175.23 3,812.98 6,668.94

2026-27 3,540.45 5,662.87 3,980.55 7,430.71

2027-28 3,678.68 6,196.46 4,148.12 8,279.49

2028-29 3,816.91 6,780.33 4,315.69 9,225.23

2029-30 3,955.14 7,419.21 4,483.26 10,278.99

2030-31 4,093.37 8,118.30 4,650.83 11,453.12

2031-32 4,231.60 8,883.25 4,818.40 12,761.37

2032-33 4,369.83 9,720.29 4,985.97 14,219.05

2033-34 4,508.06 10,636.19 5,153.54 15,843.24

2034-35 4,646.29 11,638.40 5,321.11 17,652.95

b) Investments Required for Doubling Farmer’s Income

The Ashok Dalwai Committee tasked to develop a strategy for doubling farmer’s income has derived

the estimates of the state-wise net state domestic product (NSDP) growth rate in real terms (at

2011-12 prices) for the period 2012-13 to 2015-16 using CSO data. For Rajasthan, the average

income of agricultural households at 2011-12 and current prices (Rs) is presented below.

2012-13 2013-14 2014-15 2015-16

2011-12 prices 79,142 83,834 83,431 82,136

Current Prices 88,012 92,969 97,759 92,914

The income of 2015-16 was found to be 3.92 percent lower than the national average. In order to

double this, the target for doubling worked out to 110 percent by 2022, which in turn required the

income to grow at the rate of 11.2 percent. This required growth rate in income is higher than the

national average of 10.4 percent.

The Committee worked out the Incremental Capital Output Ratio (ICOR) which estimates the

additional unit of capital or investment needed to produce an additional unit of output for a particular

46

period, estimated as: i/g where i = investment (GFCF) rate and g is incremental GSDPA. The inverse of

ICOR gives the marginal efficiency of capital. A higher value of ICOR indicates a higher investment

requirement.

ICOR for seven time-periods were worked out starting from 1981-82 and converted to three-year

moving averages. This was multiplied by the targeted rate of growth which gives the investment rate

required for doubling of income in seven years.

Private Investment

Public Investment Total Target Farm

Growth Rate/ Year

(%)

Target Farm

Income (Rs.

crores)

Agri Irrigation Agri Irrigation Energy Road Transportation

‘for’ agri

ICOR 0.89 0.30 0.05 0.24 0.22 0.17 0.68 1.57 10.31 71,500

Additional Investment Required (Rs. Crores) at 2015-16 Prices

6,570 2,220 400 1,730 1,616 1,270 5,000 11,600 - -

Required Annual Rate of Growth in Investment (%)

10.15 12.51 15.14 15.19 7.07 7.94 9.45

- - -

As may be seen, bulk of the investment is required in agriculture and allied activities (excluding

forestry and financial assets), followed by major, medium, and minor irrigation (excluding flood

control) for which majority needs to be private investments. Rural energy and rural roads follow next.

As per the Committee’s estimate, a total of Rs. 11,600 crores are required for doubling of income in

seven years in the state.

47

6) STATE OF FARMERS AND FARMING IN RAJASTHAN3

109. The state is predominantly agrarian. While the bulk of the population is engaged in farming, the share of agriculture in the State GDP has been steadily declining. It fell by 15 percentage points from the 1991-92 level to 22.7 percent in 2014-15. There was a disproportionate decline in the proportion of people engaged in farming during the same period and over 62 percent of the state’s workforce remains engaged in farming.

Figure 4. Changes in share of agriculture in NSDP and workforce (in percent)

Source: GoI, various years.

110. Average growth in Rajasthan’s economy (adjusting for inflation) witnessed an increase from 8.12 percent between 2005-10, to 9.5 percent between 2010-15.

Figure 5. Average Growth Rate of Sectors of Rajasthan’s Economy (in percent)


111. Figure 5 shows the average annual growth rate of individual sectors in the period between 2005-10 and 2010-15. Over 2005-15, agriculture and services witnessed an increase in growth rate, whereas

3 This chapter draws upon the recent work done by Gautam et al (2017) and is supplemented by the analysis of secondary sources of information: Madhur Gautam, Pratap Birthal and Raman Ahuja (2017) Transforming Rajasthan Agriculture for Sustainable and Inclusive Growth. The World Bank: Washington DC.

37.3

69.0

25.9

65.9

22.7

62.1

% OF NSDP % OF WORKFORCE

1991 2001 2011

48

growth in the manufacturing sector saw a decline. Agriculture growth increased from 2.6 percent to 9.8 percent which underlines the significance of this sector to the state’s economy. These figures also highlight the declining share of industry, the sector that is expected to absorb a majority of farmers relinquishing farming. This also is a key reason why farmers stick to their profession despite it being a low paying occupation. 112. The growth in the farm sector was accompanied by changes in its composition during this period. The share of livestock in the gross value of agricultural output rose steadily while that of the crop sector declined. Livestock is an integral part of Rajasthan’s mixed farming system and feeds on crop residues and by-products. They are an important part of households’ traditional resilience strategy.

Figure 6. Change in composition of the agriculture sector (2004–05 prices)


a) Crop Composition and Growth

113. Being predominantly rainfed, the bulk of the farming is carried out during the Kharif season. The predominant crops grown across the ten agro-climatic zones are presented in Table 4. In addition, a variety of fruits and vegetables are grown in Rajasthan. 114. Eight crops currently account for 85 percent of production in Kharif areas, dominated by guar seed and bajra (pearl millet), while four crops are most important in rabi areas, led by wheat and rapeseed-mustard. The total output of kharif crops is about 14.6 million tons, compared to 16.3 million tons of rabi crops. Rabi area is 60 percent smaller but has much higher cropping intensity. Rabi production draws on available moisture in the ground in rainfed areas. In non-rainfed areas, crops are cultivated with blue water, using canal waters in limited parts of the state in the north, but mostly by drawing groundwater in other areas.

115. The rising intensity of water-guzzling crops in the latter areas is leading to extensive depletion of scarce groundwater reserves. Only 10 blocks in the state were in the safe category while eight and ten blocks are in the semi-critical and critical stage in the year 2011. The precarious condition of groundwater depletion has been getting worse over the past years.

116. Rice is grown only in limited areas so is not a major contributor to the evolving water crisis in the state (though it could be argued that there is no reason to grow rice at all). The highest water-

49

consuming crop is wheat, which requires five to six irrigations per growing season – the most of any rabi crop grown in Rajasthan – yet given the secure and stable market for wheat created by public procurement at minimum support prices, farmers are loath not to produce it.

Table 4. Main Crops of Rajasthan Across Agro-Climatic Zones Agro-Climatic Zone Kharif Rabi

Ia. Arid Western Plains - Barmer, parts of

Jodhpur.

Pearl Millet, Moth Bean,

Sesame

Wheat, Mustard, Cumin

Ib. Irrigated North Western Plains –

Ganganagar, Hanumangarh.

Cotton, Cluster Bean Wheat, Mustard, Gram

Ic. Hyper-Arid Partially Irrigated Western

Plains- Bikaner, Jaisalmer, parts of Churu.

Pearl Millet, Moth Bean,

Cluster Bean

Wheat, Mustard, Gram

IIa. Transitional Plains of Inland Drainage -

Nagaur, Sikar, Jhunjhunu, parts of Churu.

Pearl Millet, Cluster Bean,

Pulses

Mustard, Gram

IIb. Transitional Plains of Luni Basin -

Jalore, Pali, parts of Sirohi, Jodhpur.


Sesame

Wheat, Mustard

IIIa. Semi- arid Eastern Plains - Jaipur,

Ajmer, Dausa, Tonk.

Pearl Millet, Sorghum, Cluster

Bean

Wheat, Mustard, Gram

IIIb. Flood - Prone Eastern Plains- Alwar,

Bharatpur, Dhaulpur, Karauli, parts of

Sawai Madhopur.


Groundnut

Wheat, Mustard, Barley,

Gram

IVa. Sub- Humid Southern Plains & Aravali

Hills- Bhilwara, Rajsamand, parts of

Udaipur, parts of Chittaurgarh, parts of

Sirohi.

Maize, Pulses, Sorghum Wheat, Gram

IVb. Humid Southern Plains- Dungarpur,

Banswara, parts of Udaipur, parts of

Chittaurgarh.

Maize, Paddy, Sorghum, Black

Gram

Wheat, Gram

V. Humid Southern Eastern Plains- Kota,

Baran, Bundi, Jhalawar, parts of Sawai

Madhopur

Soybean, Sorghum Wheat, Mustard,

Source: GoR (2017) Agricultural Statistics of Rajasthan 2015-16.

117. Cereals are the most important crops, although their share in the gross cropped area declined from an average of 46 percent during 1995–2005 to 41 percent during 2006–15, and the gross value of output declined from 40 percent to 37 percent (Table 5) 118. The main cereal crops are pearl millet and wheat in kharif and rabi seasons, respectively. Maize and sorghum are also cultivated in some parts of the state. The shrinking share of cereals is largely due to a decline in pearl millet over the past two decades. This is despite pearl millet being a nutrient-dense, climate-resilient crop that also has potential use in the nutraceuticals, feed, and beverage industries. On the other hand, the share of wheat remained stable, due largely to the government’s policy of assured procurement of wheat at predetermined prices.

50

119. Oilseeds are the second most important crop group, in terms of area as well as value. They account for about 20 percent of the total cropped area and 28 percent of the total value of the output of crops. Rapeseed-mustard is the most important oilseed crop. Soybean is also emerging an important crop in the state, especially in the regions adjoining the growing regions of Madhya Pradesh and Maharashtra. Groundnut, linseed, and castor are other oilseed crops cultivated in the state.

120. Pulses occupied an average of 16.5 percent of the gross cropped area in the recent period, marginally less than in the previous decade, but lost more than 3 percent in their share of the gross value of output. Chickpea, moong, and moth (the latter two classified as “other” pulses) are main pulse crops. Most pulses, particularly during kharif season, are grown as companion crops of cereals.

121. Guar, also known as cluster bean (Cyamopsis tetragonoloba), is an important leguminous crop grown during kharif season. The crop can be cultivated on a variety of soils and is capable of withstanding acute water stress. Rich in protein, it is an excellent animal feed and a vegetable for human consumption. Its uses, however, have diversified over time. Guar gum is a cost-effective emulsifying and thickening natural polymer used in a number of industries including food, beverages, pharmaceuticals, cosmetics, paper, textile, construction, oil, and gas well drilling, and mining. The increasing commercial importance of guar has resulted in a consolidation of its share in area and value of output – its share in the gross cropped area increased from 11 percent in the period 1996–2005 to 15 percent during 2006–15 while its value share rose from 3 percent to 9 percent.

122. Fruits, vegetables, spices and medicinal plants are often termed high-value crops, and together occupied, on average, 5 percent of the total cropped area and contributed 11 percent to the total value of agricultural output during 2006–15. Spices occupy more than half of the total area of high-value crops. Coriander and cumin are important spices, and Isabgol (psyllium husk) is an important medicinal crop. Despite generating a significantly higher value per unit of land, recent trends show that the expansion in area or share of the value of the output of these crops is not significant (Figure 7).

51

Table 5. Share of crops in gross cropped area and gross value of output Share in area (%) Share in real value of output

(%, 2004–05 prices)

Crop 1995–96 to

2004–05

2005–06 to

2014–15

1995–96 to

2004–05

2005–06 to

2014–15

Rice 0.7 0.6 1.3 1.2

Wheat 12.2 12.0 24.1 21.1

Maize 5.1 4.5 3.9 3.5

Sorghum 3.2 2.8 0.7 0.9

Pearl millet 23.7 20.8 8.3 9.1

Barley 1.1 1.2 1.5 1.6

Total cereals 45.9 41.9 39.9 37.3

Chickpea 7.2 5.6 9.1 5.4

Other pulses 10.5 10.8 5.3 5.6

Total pulses 17.9 16.5 14.5 11.0

Groundnut 1.3 1.6 2.5 3.3

Sesame 1.6 1.9 1.1 2.0

Rapeseed-mustard 12.9 11.7 19.8 16.0

Soybean 2.8 3.8 3.9 4.4

Other oilseeds 0.3 0.7 0.8 1.9

Total oilseeds 19.0 19.6 28.0 27.6

Cotton 2.7 1.8 4.6 3.8

Spices and

condiments and

spices

2.5 3.1 4.2 4.6

Fruits 0.1 0.1 1.9 2.4

Potato 0.0 0.0 0.1 0.1

Onion 0.1 0.2 0.4 0.9

Total vegetables 0.5 0.6 1.4 1.9

Guar 10.6 15.1 2.9 9.1

Medicinal plants 0.7 1.1 2.2 2.1

Other crops 0.1 0.0 0.5 0.1

Total 100.0 100.0 100.0 100.0

High-value crops 3.7 5.0 9.6 11.0

Source: Estimated using GoR (various years) and GoI (various years).

Figure 7. Area and production of horticulture crops, 2010-15

0

1

1

2

2

3

3

4

0

1

1

2

2

2010-11 2011-12 2012-13 2013-14 2014-15

Pro

du

ctio

n (

in m

illio

n M

.T.)

Are

a (i

n m

illio

n H

a.)

YearArea Production

52

123. In Rajasthan major spices grown are Ajwain, Chilly, Cumin, Fenugreek, Coriander, Garlic, Ginger & Turmeric and the major spice growing districts of Rajasthan are presented in Table 6.

Table 6. Major Spice Growing Districts

Ajwain Chittorgarh, Jalawad, Rajsamand, Udaipur

Chillies Ajmer, Bhilwara, Jodhpur, Nagaur, Pali, Sawai Madhopur, Tonk

Coriander Baran, Bundi, Chittorgarh, Jalawad, Kota

Cumin Barmer, Jalore, Jaisalmer, Jodhpur, Nagaur, Pali

Fennel Jodhpur, Sawai Madhopur, Sirohi, Tonk

Fenugreek Chittorgarh, Jaipur, Jalawad, Kota, Nagaur, Sikar

Garlic Baran, Chittorgarh, Jalawad, Jodhpur

Ginger Udaipur Turmeric Bhilwara, Bundi, Udaipur

Source: Department of Horticulture, Rajasthan

124. In terms of distribution of crops in the different agro-climatic zones, the arid zone used to predominantly grow pearl millet which was replaced by Moth bean by the end of the twentieth century. However, due to increasing fluctuation of monsoon rainfall, farmers again reverted to growing pearl millet. In recent years, due to the global demand for guar gum, cultivation of guar has picked up in Zone IA and IC. The zone IB with good irrigation has taken up cotton cultivation. In the southern zone, IVA maize has always been preferred for the dominant crop. The edaphic factors support the cultivation of maize in the region. The region has less variability in rainfall; therefore, it gives it an advantage for the cultivation of maize. The zone V is dominated by Soybean cultivation. The region is a plateau region and is adjacent to the state of Madhya Pradesh which is the largest producer of Soybean. The crop combination in central tract viz. zone IIA has shifted from monoculture to cultivation of six crops. 125. The crop combination in rabi season has shifted from gram dominated cropping pattern to mustard dominated. The reason behind such a shift is increasing the variability of monsoonal rainfall, as the gram crop is dependent on the monsoonal rainfall. The cultivation of mustard has also increased due to increased irrigation facilities. The cultivation of spices has also increased in the zone IC and zone V. Zone IC is dominated by the cultivation of cumin, whereas the zone V dominates in the cultivation of coriander. The better remunerative prices of mustard and spices have also attracted farmers to opt for the cultivation of these crops. Cowpea has also emerged as a good option in the central tract of Rajasthan.

b) Variability in Crop Output

126. Sharma (20174) examined the trend in production of cereals and pulses in Rajasthan using a linear equation, and the growth rate of the area, production and productivity. It observed that a positive and significant trend in the production was found in cereal crops like maize, bajra, wheat and barley during the period 1990-91 to 2013-14. The production trend of jowar and paddy was positive and non-significant, despite the fact the maize was largely grown under rainfed condition. The trends in the production of paddy in Rajasthan during the 1990-91 to 2013-14 did not show any increment.

4 Shirish Sharma (2017) Exploring the Performance of Cereals and Pulses in Rajasthan. Agricultural Situation in India. Vol LXXIV (1): 15-24pp

53

127. In case of pulses, a positive and significant trend in the production was found in moong. Moth Bean and urad recorded positive and non-significant trend in the production. Gram and arhar were found to have a negative and non-significant trend in the production. 128. The production of maize and barley was found to have a positive and non-significant trend. The production of bajra, jowar, moong, and moth were found to have negative and non-significant linear trend during the period. However, for the pulse crops like urad, gram, and arhar, the production trend was found positive and nonsignificant. 129. In Second period (2002-03 to 2013-14), a positive and significant trend in the production was observed in wheat, barley and moong and gram. Positive and non- significant trend in the production was found in some cereal crops like maize, bajra, jowar, paddy and some pulse crop like moth, urad, and arhar during the period. These trends were reiterated by Gautam et al (2017).

54

131. Table 7 presents the growth rate and coefficient of variation in area, yield, and production of important crops or crop groups, and their changes over time. Led by wheat, the growth of cereal production accelerated significantly, from 2.8 percent during 1996–2005 to 4.8 percent during 2006–15. This came largely from yield improvements, although their area also increased. However, the growth rate in production of kharif cereals, pearl millet, and maize decelerated, with a decline in both area and yield growth rates.

132. The performance of pulses improved dramatically, with production growing at 5.6 percent per year during 2006–15 compared to the decline (at -3.4 percent a year) in the previous period. The increased production was driven by both area expansion and yield increases, especially of chickpeas, the main pulse crop.

133. Growth in the production of oilseeds remained muted during 2006–15. Their production growth decelerated from 4.2 percent to 1.1 percent, due mainly to sluggish yield growth. The area under rapeseed-mustard declined, and growth in its yield decelerated significantly. For a state with a sizable area under oilseeds, the flattening yield trend is a serious concern and needs to be arrested through the dissemination of high-yielding varieties and agronomic practices.

134. The performance of guar was excellent, registering an annual growth of 15 percent in production during 2006–15, almost triple its growth in a previous decade. Apart from significant growth in the area, it also experienced significant yield gains. This impressive growth is a result of growing export demand, accompanied by a significant although the erratic rise in domestic prices.

135. Most high-value crops experienced steady and robust growth. Spices, which occupy more than half the total area of high-value crops, experienced an accelerated rate of 4.7 percent per year in production over 2006-15. The production of medicinal crops grew at an accelerated rate of 6 percent during the same period, almost three times their growth during 1996–2005. The production of fruits also grew at a faster rate, and vegetable production grew consistently at 7–8 percent. It is notable that the growth in production of high-value crops largely came from increases in area, and little from yield improvements.

136. In the case of most crops, faster growth in production was accompanied by a reduction in variability. The coefficient of variation in the production of guar and pearl millet declined significantly, as both their area and yield became more stable. The production of pulses, although highly unstable, also experienced a significant reduction in variability primarily due to the more stable area even as yield variability increased (as in the case of chickpea).

137. Oilseed production also became more stable. The coefficient of variation in production declined by one-fourth, largely due to the increased stability of the area for rapeseed-mustard. It must be noted, however, that the growth in oilseed production decelerated significantly due to a deceleration in yield growth, a trend that is a cause of concern given the state’s dominant position in the country’s production of the main oilseed, rapeseed-mustard (about 46 percent of area and 48 percent of national output). Wheat production is most stable among all crops. It experienced a marginal decline in wheat instability, largely due to reduced variability in its area. The variability in yield was low but increased in the recent period. The production of most high-value (horticulture) crops, on the other hand, showed little variation over time.

c) Livestock Sector

138. In Rajasthan, livestock sector plays a major role in the socio-economic status and fulfilling nutritional needs of rural masses. The state is second highest in milk production in the country. Of the

55

total milk produced, 53 percent is buffalo milk, 36 percent cattle milk and 11 percent is goat milk. Per capita availability of milk is highest in Jaisalmer district having 1,085 grams of milk per day per person. Approximately, 50 percent of the milk produced is sold in the market and only 25 percent is consumed at home as liquid milk. Remaining 25 percent of the milk produced is converted into milk products. The State faces frequent droughts and famine which causes frequent crop failure as most of the agriculture is rainfed. In this climatic scenario, the dairy sector provides sustainable year-round income to a large number of farmers. 139. Though the livestock sector is very important for the state’s economy, its share of the value output to agriculture and allied has remained somewhat static after 2004-05 as can be seen from Table 8. Similarly, the percent growth in value of output also does not show any specific trend as can be seen from Table 9.

56

Table 7. Growth and variability in area, yield, and production of major crops Annual growth rate (%) Coefficient of variation (%)

Product Period Area Yield Production Area Yield Production

Rice 1996–2005 -3.3 4.4 0.4 19.6 18.3 28.0 2006–2015 3.0 3.4 6.4 10.5 9.8 13.7

Wheat 1996–2005 -1.1 1.2 0.2 10.9 4.3 11.1 2006–2015 4.0 2.0 5.8 6.5 6.7 9.6

Maize 1996–2005 1.4 3.2 4.8 3.3 21.3 25.8 2006–2015 -1.0 2.9 1.7 5.2 17.5 19.7

Pearl millet 1996–2005 0.8 7.7 9.1 17.0 43.3 59.2 2006–2015 -0.8 4.7 3.3 8.2 22.2 26.9

Cereals 1996–2005 0.3 2.4 2.8 10.8 11.9 20.5 2006–2015 0.8 4.2 4.8 5.1 10.9 13.2

Chickpea 1996–2005 -6.5 -0.9 -7.5 40.9 10.6 47.0 2006–2015 4.4 2.4 6.9 20.7 21.2 32.4

Total pulses 1996–2005 -1.5 -2.1 -3.4 23.0 23.9 42.2 2006–2015 1.8 4.3 5.6 12.1 24.5 32.3

Rapeseed-mustard 1996–2005 -0.2 3.2 3.4 25.5 12.4 27.9 2006–2015 -0.3 1.6 1.2 15.2 10.9 19.4

Soybean 1996–2005 3.7 1.2 5.1 15.8 26.1 31.5 2006–2015 5.0 -0.2 4.4 10.4 17.0 18.4

Oilseeds 1996–2005 0.7 3.0 4.2 19.8 14.1 26.8 2006–2015 1.7 -0.5 1.1 9.9 14.0 19.9

Vegetables 1996–2005 4.6 2.4 7.9 7.6 9.1 14.6 2006–2015 3.0 4.7 7.4 8.0 11.4 13.6

Fruits 1996–2005 2.9 -1.2 1.8 4.0 22.3 22.5 2006–2015 4.8 3.5 8.1 1.6 19.1 19.4

Spices 1996–2005 1.8 2.1 4.1 23.0 12.1 25.9 2006–2015 6.2 -1.2 4.7 16.3 6.6 21.0

Medicinal plants 1996–2005 6.3 -3.4 2.0 11.5 7.7 14.9 2006–2015 5.9 0.4 6.0 16.9 13.7 15.4

Guar 1996–2005 3.1 1.3 5.6 31.8 59.0 65.4 2006–2015 7.3 8.3 15.0 11.6 14.0 12.9

Source: Data and estimated data from GoR (various years). Note: Growth rate estimated using Hodrick-Prescott (HP) filtered data; coefficient of variation estimated from the residuals.

Table 8. Share of Value of Output to Agriculture and Allied (%)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2009-11

Agriculture 54 53 54 54 53 47 53

Livestock 34 35 35 35 38 42 37

Source: State-wise estimates of the value of output from agriculture and allied activities with new base year 2004-2005 (Published in 2013), Ministry of Statistics and Programme Implementation, Govt. of India.

57

Table 9. Percent Growth in Value of Output at Constant Prices

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Agriculture & Allied -0.20 6.76 2.50 8.05 -6.76 19.52

Agriculture -2.26 8.11 2.50 6.97 -17.92 35.71

Livestock 3.59 5.78 1.64 16.67 3.69 6.22

Milk 4.39 7.56 1.56 22.31 3.77 7.27

Meat 12.50 0.00 0.00 0.00 11.11 10.00

Egg 0.00 0.00 0.00 0.00 0.00 0.00 Dung 0.00 2.56 2.50 2.44 2.38 2.33 Others 0.00 0.00 0.00 20.00 0.00 0.00

^Includes Wool and Hair, Silkworm Cocoons & Honey, Increment in Stock Source: State-wise estimates of the value of output from agriculture and allied activities with new base year

2004-2005 (Published in 2013), Ministry of Statistics and Programme Implementation, Govt. of India.

140. Rajasthan has some of the largest herds of livestock in the country. In 2012, its 13.3 million cattle, 12.9 million buffaloes, 21.7 million goats, and 9.1 million sheep (Table 10) comprised, respectively, 6.9 percent, 11.9 percent, 31.0 percent, and 14.0 percent of the national total.5 In the past five years, the number of large ruminants (cattle and buffaloes) increased, while the goat population remained stagnant and that of sheep declined. The decline in sheep population is due to the severe drought in 2008-09.

Table 10. Trend in livestock population (million) 1997 2003 2007 2012

Cattle 12.1 10.9 12.1 13.3

Buffaloes 9.8 10.4 11.1 12.9

Sheep 4.6 10.1 11.2 9.1

Goats 16.9 16.8 21.8 21.7

Camels 0.67 0.5 0.42 0.33

Poultry 54.7 49.1 56.6 55.7

Source: Department of Animal Husbandry, GoR.

141. The state registered significant growth in livestock production (Table 11). Growing at 6.2 percent annually since 2005–06, milk production reached 17 million tons in 2014–15. Egg and meat production also experienced accelerated growth. The faster growth in production than in animal population indicates the main driver has been yield improvement. Wool production, on the other hand, remained on a declining trend. Table 12 shows the structure and productivity of milk production. Buffaloes account for 53 percent of total milk output, followed by local cows at 25 percent, crossbred cows at 11 percent, and goats at 11 percent. It is notable that the milk yield of most species has improved and is now estimated to be above the national average (for crossbred and indigenous cattle, and buffalo).

5 Rajasthan ranks at the top in terms of goat population, second for buffalo, third for sheep and fifth for cattle in the country.

58

Table 11. Growth in livestock production Production

Period Milk (000 tons)

Eggs (million)

Meat (000 tons)

Wool (100,000 kg)

1995–96 5449 436 32 174

2005–06 8713 703 68 154

2014–15 16934 1320 181 145 Annual growth (%)

1996–2005 4.5 5.0 8.5 -1.6

2006–15 6.2 8.3 12.8 -0.8


Table 12. Structure of milk production in Rajasthan 1995–96 2005–06 2014–15

Share of production (%)

Crossbred cows - 2.9 10.9

Local cows 35.2 26.2 25.3

Buffaloes 54.2 58.6 53.1

Goats 10.6 11.3 10.8

Total (000) 5449 8713 16934

Yield (kg/animal)

Crossbred cows - 6.97 7.77

Local cows 2.77 3.02 4.51

Buffaloes 3.99 4.49 6.69

Goats 0.54 0.66 0.67


Note: Data not available for crossbred cows in 1995-96.

142. The state has three native cattle breeds viz Rathi, Tharparker and Nagori, having a great deal of endurance. Rathi cattle breed is reared for dairy purposes in the northern districts of Shri Ganganagar, Bikaner and parts of Jaisalmer which are irrigated or partially irrigated arid zones with alluvial or loamy soil. The Tharparkar cattle breed is native of the Jodhpur and Jaisalmer districts in the eastern region of the state which has arid climate characterised by low rainfall and desert soil. Tharparkar is also known as “White Sindhi”, “Cutchi” or “Thari” cattle breed reared for the dual purpose of draught and milk production as it can produce milk under rigorous feeding and unfavourable environmental conditions. 143. Nagori cattle breed has been named after the Nagaur district which is in the central part of the state. The Nagori cattle are sturdy and used for ploughing, cultivation, drawing water from wells as well as transportation of field produce to markets. Earlier they were used as trotters in light iron-wheeled carts for quick transportation. There was a good demand for Nagori animals in Bihar but after implementation of Rajasthan Bovine Animal (Prohibition on Slaughter and Regulation of Temporary Migration or Export) Act, the demand has tapered off. In addition to native breeds, Gir, Malvi, Kankrej and Hariana cattle are found in large numbers in the State. In case of Buffalo, there is no native breed. However, an enormous number of Murrah, Surti buffaloes are reared in the region. 144. The government manages a network of institutions for health care and service delivery which includes a Biological Product Lab at Jaipur, a State Disease Diagnostic Centre (SDDC) at Jaipur, six Regional Disease Diagnostic Centres (RDDC), 34 District Disease Diagnostic Lab, 1,718 Veterinary Hospitals (VH), 198 Veterinary Dispensaries (VD) and a series of Sub-centres. In addition to a Rajasthan State Livestock Management Institute (RSLMTI), Bassi, it has Livestock Assistant Training Institute for

59

strengthening the quality of manpower involved in providing services. The efforts of the State Government are supported by Rajasthan University of Veterinary and Animal Science (RAJUVAS), Bikaner which has three constituent colleges at Bikaner, Udaipur, and Jaipur. In addition, it has six private veterinary colleges affiliated to RAJUVAS under Public Private Partnership (PPP). It has seven Livestock Research Stations and 65 institutions to produce 3,000 para-vet each year. 145. In Rajasthan, the livestock keepers have traditionally relied on common grazing lands “gochars”, sacred groves “orans” and forests. With the growth of mining industry and allocation of community wastelands for biodiesel plantation, the permanent pastures and other grazing land reduced from 1.9 million ha in 1990-91 to 1.7 million ha in 2009-10. Often layers of white marble dust choke neighbouring grazing land. Amidst shrinking grazing land, forests were open for grazing to animals. But a Supreme Court ruling in 2002 that all human use (including grazing) in sanctuaries be banned to curb the transmission of disease to resident wildlife. Now the livestock farmers are shifting from extensive open grazing system to semi-intensive and intensive stall-feeding system. Dairying is the most reliable source of earning to farmers in Rajasthan but with disappearing grazing land, restricted forest, and stall feeding, the bovines are facing a severe shortage of fodder.

d) Drivers of Growth

146. Agricultural growth in any region can occur because of (a) growth in crop output; (b) diversification of agriculture towards high valued crops and livestock products, and (c) increase in the value of the given output (Bhalla and Singh, 20096). Examining these three aspects of agricultural growth in Rajasthan reveals that the overall growth in crop production of major crops in the state is quite impressive in recent past (Table 13). The share of oilseeds, pulses and horticultural crops in GCA has increased substantially during the last two decades which proves that the process of diversification of agriculture towards high valued crops is in the right direction, while there is a need of increasing the pace of diversification towards high valued cash crops in the state. As evident from Table 14, the value of agriculture commodities also rose significantly.

Table 13. Index of Agricultural Production (Base Year 1991-92 to 1993-94 = 100)

Crops 2009-10 2010-11 2011-12 2012-13 2013-14

Food grains 126.59 266.67 236.88 216.59 232.14

Cereals 153.65 261.87 252.53 235.93 239.06

Pulses 61.97 278.11 199.52 170.42 215.60

Non-food grain Crops 151.24 221.99 238.05 244.53 246.62

Total Oilseeds 169.53 237.52 217.45 240.42 227.81

Fibres 100.26 95.04 191.92 169.42 142.68

Condiments and Spices 211.80 234.14 323.86 218.55 199.50

Fruit and Vegetables 295.67 415.88 506.75 384.21 532.74

Sugarcane 29.45 31.57 38.57 36.27 31.02

Tobacco 50.83 33.93 36.42 25.48 25.44

Guarseed 56.60 430.08 515.83 565.79 798.98 Source: GoR (2016) Agricultural Statistics of Rajasthan 2013-14.

6 Bhalla, G. S. and Gurmail Singh (2009) Economic Liberalization and Indian Agriculture: A State-wise Analysis, Economic and Political Weekly, Vol. 46, No. 52, pp-34-44, December 26.

60

Table 14. Value of Main Agricultural Produce Based on Current Prices (Rs. Crores)

Crop Value Change %

1990-91 1997-2002 2012-13 2015-16 1990-1997 1997-2012 2012-2016

Paddy 100.45 239.72 294.58 586.08 138.65 22.89 98.95

Jowar 122.59 110.20 599.76 506.71 -10.11 444.25 -15.51

Bajra 574.66 954.67 4,887.05 4,252.69 66.13 411.91 -12.98

Maize 308.55 521.31 2,569.18 1,725.56 68.95 392.83 -32.84

Wheat 1,288.82 3,892.43 16,010.53 18,319.00 202.02 311.32 14.42

Barley 123.12 204.43 1,070.09 946.78 66.04 423.45 -11.52

Kharif Pulses 428.63 568.24 2,370.28 5,699.82 32.57 317.13 140.47

Gram 665.24 1,356.73 4,602.31 3,328.08 103.95 239.22 -27.69

Total Food Grains 3,612.06 7,847.71 32,403.77 35,364.72 117.26 312.91 9.14

Sesame 252.86 82.69 1,047.74 958.07 -67.30 1,167.07 -8.56

Groundnut 206.64 384.61 2,757.22 4,042.85 86.13 616.89 46.63

Soybean 72.00 607.10 4,999.01 2,795.51 743.19 723.42 -44.08

Castor seed 28.44 67.41 0.00 0.00 137.03 -100.00 -

Mustard 1,584.05 2,797.43 12,941.92 12,403.21 76.60 362.64 -4.16

Taramira 53.25 113.65 168.08 26.39 113.43 47.89 -84.30

Linseed 20.44 8.78 7.74 8.98 -57.05 -11.85 16.02

Total Oilseeds 2,217.78 4,061.67 21,921.70 20,235.00 83.14 439.72 -7.69

Sugarcane 26.47 43.25 68.34 108.86 63.39 58.01 59.29

Cotton 387.78 758.06 6,339.67 5,495.78 95.49 736.30 -13.31

Guar 353.43 765.93 19,643.33 5,904.29 116.71 2,464.64 -69.94

Chillies 80.19 199.96 88.76 165.38 149.36 -55.61 86.32

Coriander 94.07 316.81 1,058.62 1,523.40 236.78 234.15 43.90

Cumin 73.73 493.03 2,030.69 2,425.40 568.70 311.88 19.44

Methi 18.39 67.13 178.20 0.00 265.04 165.46 -100.00

Total Other 1,034.05 2,644.18 29,407.60 15,623.54 155.71 1,012.16 -46.87

Grand Total 6,863.90 14,553.57 83,733.07 71,223.26 112.03 475.34 -14.94


147. Figure 8 presents the key crops that drove the growth in the production in Rajasthan during the period 2009-14. It can be observed that cereals, oilseeds and non-food grain crops such as cotton are no longer the key drivers of growth as they traditionally used to be. Pulses and to a certain extent fruits and vegetables are emerging as important crops in the state which points to a move towards diversification. However, what really stands out is the enormous spike in the production of guar which clearly skewed the growth upwardly. 148. The role of guar however diminished in subsequent years as seen in the last column of Table 14. Guar represents a classic case of a crop in a traditional agrarian economy linked to global trade and vulnerable to market shocks. India produces around 80 percent of the world’s guar-seed, with Pakistan’s share of 15 percent making it a distant No. 2 player. 70 percent of India’s guar-seed, in turn, is produced in Rajasthan, followed by Haryana (10 percent) and Punjab and Gujarat (5 percent each). The major guar-growing areas in Rajasthan include the northern districts of Bikaner, Shri Ganganagar, Hanumangarh and Churu, and the western belt of Jaisalmer, Barmer, and Jodhpur.

61

149. The guar-gum is used as a thickening agent in the fracking fluid - basically water and suspended sands - that is injected at high-pressure to create cracks in shale rock formations and allow the gas/oil to flow out from them. Before the shale boom, guar-gum was consumed largely in the food industry as a binder, thickener, and stabiliser, while fetching around $2,000 a tonne. But by 2012, prices were close to $30,000 per tonne, as US hydrocarbon drilling services firms like Halliburton, Schlumberger and Baker Hughes began stockpiling the gum. The exports rose from INR 29.39 billion in 2010-11 to INR 212.87 billion in 2012-13.

Figure 8. Growth in Crop Production (2009-14)


150. While farmers benefited as demand for guar-gum picked up, they also were exposed to volatility in market prices as can be seen from the magnitude of the coefficient of variation in wholesale prices in select markets in Rajasthan and Haryana (Table 15). There was high volatility in prices of Guar bean at Hissar (56.7% and 56.6% in 2012 and 2013, respectively), Fatehabad (56.3% in 2012), Jaipur (50.6% in 2011), Adampur (47.7% in 2012), Shri Ganganagar (46.1% in 2012) and Hanumangarh (36.1% in 2001) markets.

Table 15. Volatility in Guar Bean Prices (C.V. in Percent)

Year Rajasthan Haryana

Ganganagar Jaipur Hanumangarh Adampur Fatehabad Hissar

2007 5.5 6.0 5.9 6.0 6.7 6.9

2008 7.2 8.5 7.8 8.0 7.1 9.6

2009 20.9 19.3 22.0 21.1 21.5 20.2

2010 7.8 8.4 8.0 6.7 8.3 14.7

2011 29.4 50.6 36.1 28.1 29.5 25.4

2012 46.1 38.5 33.8 47.7 56.3 56.7

2013 29.2 39.5 28.3 24.5 23.5 56.6 Source: Agmarknet

151. With a fall in international crude prices, investments in shale exploration and drilling slowed down. This brought the price of guar-gum crashing to around $1,200 a tonne. Export subsidies under schemes such as Vishesh Krishi and Gram Udyog Yojana have been discontinued. For farmers, the main attraction of guar - traditionally used to feed animals and eaten as a vegetable - is its low input cost,

62

comparatively short duration of 90 days, little water requirement and also being a nitrogen-fixing leguminous crop. While the profits were huge when the going was good, they have not lost money either.

152. The cyclical nature of international crude oil prices yet again spiked the demand for guar-gum. Rajasthani farmers responded by sowing an additional 50 percent area under Guar beans during kharif 2016.

153. National Food Security Mission (NFSM) and the National Horticulture Mission (NHM) have also emerged as the path-breaking interventions which have helped in agricultural diversification towards cash crops in Rajasthan (Swain et al, 20117; Dutta and Kapadia, 20118). The growth in livestock in the state is also remarkable. So far as the increase in the value of the agricultural output is concerned, it is noteworthy that the prices of agricultural commodities have increased successively over the years in the state (Table 14) resulting in the rise in the value of output. However, the majority of farmers don’t get remunerative prices because of constraints in marketing channels and infrastructures resulting in a lower value of their output. Farmers are unable to get Minimum Support Price (MSP) because of the monopolistic behaviour of the informal buyers/ traders who purchase the agriculture production at the lower as compared to prevailing market price (GoR, 20129). 154. Another key driver of agricultural growth is the Gross Fixed Capital Formation (GFCF) in agriculture as a percentage to agri-GDP. The GFCF in agriculture and the allied sector as a percentage of agri-GDP has more than doubled during last decade at all India level. However, the same declined from 9.7 percent in 2005-06 to 6.0 percent in 2010-11 in Rajasthan. It further declined to 4.3 percent in 2011-12 and partially recovered to 5.3 percent in 2014-15. The GFCF in agriculture & allied sector as a percentage of total GFCF has also declined from 10.8 percent in 2005 to 3.96 percent in 2015-15 in Rajasthan (GoR Economic Review various issues). This is a worrying trend. 155. It is worth mentioning here that the marginal returns evident in terms of poverty alleviation or accelerating agricultural growth is much lower from input subsidies than from investments in rural roads or agri-R&D or irrigation (Fan et al, 200810). Thus, agricultural subsidies should be targeted more towards poor farmers and public investment in agriculture should be accelerated for sustained long-term agricultural growth. This would help in the expansion of irrigation facilities which is very critical for agricultural growth in Rajasthan, particularly keeping in view the fact that major part of the cultivable area (58.12%) is rainfed and the annual average rainfall in the state is very scanty and erratic in nature.

156. As noted earlier in this section, Animal husbandry is a major economic activity of the rural people, especially in the arid and semi-arid regions of Rajasthan. Development of livestock sector has a significant beneficial impact in generating employment and reducing poverty in rural areas. Livestock is the best insurance against drought and famine and generates gainful employment in rural areas of Rajasthan. The state has about 11.27 percent of country's total livestock population and contributes over 81.37 percent of camel population, 16.03 percent of goat population, 13.95 percent sheep

7 Swain, M., R. H. Patel, and M. Ojha (2011), Impacts of National Horticulture Mission Scheme in Rajasthan, Research Report No. 142, Agro-Economic Research Centre, S.P. University, V.V. Nagar. 8 Dutta, R.A. and K. Kapadia, (2011), Possibilities and Constraints in Increasing Pulses Production in Rajasthan and Impacts of National Food Security Mission on Pulses, Research Report No. 140, Agro-Economic Research Centre, S.P. University, V.V. Nagar. 9 GoR, (2012) Rajasthan Agriculture Competitiveness Project, Department of Agriculture, Government of Rajasthan, January. 10 Shenggen Fan, A. Gulati and S. Thorat (2008), Investment, Subsidies and Pro-poor Growth in Rural India, Agricultural Economics, Vol. 39, pp-163-170.

63

population, 11.94 percent of buffalo and 6.98 percent of cattle population during 19th livestock census in the country.

157. The contribution of buffalo in total milk production is 52.71 percent with a net increase of 0.77 percent over the previous milk production, followed by indigenous cattle (28.63%), goat (12.22 %) and crossbred cow (6.44%). Livestock rearing is an integral component of the economic and social fabric of the rural masses in Rajasthan. Since crop farming is constrained by erratic rains and limited irrigation facilities, livestock is an adjunct farm enterprise in most parts of the state, especially in arid areas. About 55 percent of the total area of the state is under the Thar Desert. Animal husbandry comes to the rescue as a measure to alleviate the effects of frequent droughts and by providing sustainable year-round income to the farmers.

e) Factors Influencing Growth

158. Gautam et al (2017) analysed the factors influencing growth in the agricultural sector and examined the reasons affecting (a) changes in the gross cropped area, (b) crop yields, (c) farm prices, and (d) land reallocation or diversification. 159. The decomposition exercise carried out by the authors identified area expansion as a key source of growth over the past decade. Net cropped area, which hovered around 16 million ha between 1995 and 2005, increased by 1.4 percent per year over the next period, reaching more than 17 million ha

by 2015 (Figure 9). Gross cropped area increased even faster, by 2.5 percent per year, from almost negligible growth in the previous period, which raised cropping intensity from about 115 percent to over 140 percent.

f) Gross Cropped Area

160. Irrigation was the main factor driving the expansion of gross cropped area, as well as in raising crop yields and reducing variability by mitigating the impact of droughts. Gross irrigated area, which declined until 2002–0311, has increased since then, reaching close to 10,000 ha in 2013–14, or about 40 percent of the gross cropped area, from less than one-third in 1996–2005 (Figure 10).

11 The year 2002-03 was a severe drought year, during which gross cropped area and gross irrigated area fell by 37 percent and 18 percent, respectively. Gross irrigated area saw a steep increase in absolute and proportionate terms after 2009-10.

Notes: Cropping intensity right axis; GCA and NSA left axis

Source: GoR 2015a.

100

110

120

130

140

150

0

5

10

15

20

25

30

19

95-9

6

19

96-9

7

19

97-9

8

19

98-9

9

19

99-0

0

20

00-0

1

20

01-0

2

20

02-0

3

20

03-0

4

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

Tho

usa

nd

s Cropping intensity (%) GCA (000ha)

NSA (000ha)

Note: GIA on left axis; Percent GCA irrigated on right axis

Source: GoR 2015a.

0

10

20

30

40

50

60

5

6

7

8

9

10

11

12

19

95-9

6

19

96-9

7

19

97-9

8

19

98-9

9

19

99-0

0

20

00-0

1

20

01-0

2

20

02-0

3

20

03-0

4

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

Tho

usa

nd

s

Gross irrigated area (000ha)

% of GCAirrigated

Figure 9. Trends in net sown area (NSA) and gross cropped area (GCA) and cropping Intensity

Figure 10. Trend in gross irrigated area

64

161. Surface irrigation in Rajasthan is limited, however. The bulk of the cropped area is irrigated using groundwater, which has risen to almost 70 percent of the total irrigated area, from less than two-thirds before 2006. In fact, two-thirds of the additional area brought under irrigation in the latter period was due to the expansion of groundwater irrigation, contributing to the overexploitation of groundwater in large parts of the state.

g) Improved Crop Yields

162. The use of improved seeds and fertilizers increased considerably, due in part to a significant increase in distribution by the state government. The seed replacement rate of pearl millet almost doubled to 60 percent in 2013–14 from 33 percent in 2000–01, and maize rose to 55 percent from 13 percent. The seed replacement rates of wheat and rapeseed-mustard are now at 32 percent and 81 percent, respectively, much higher than in 2000–01. However, the seed replacement rate of pulses and oilseeds (other than rapeseed-mustard) remains low (Table 16).

Table 16. Seed replacement rate for important crops (%) Crop 2000–01 2007–08 2013–14

Paddy 4.41 13.01 10.07

Pearl millet 32.91 46.20 59.83

Sorghum 3.83 9.01 21.95

Maize 12.54 42.13 54.93

Wheat 11.16 31.77 31.93

Barley n.a. 26.67 37.25

Chickpea 6.64 5.09 11.79

Moong 8.67 23.07 23.79

Moth n.a. 4.65 9.43

Rapeseed-mustard 68.95 77.91 81.02

Soybean 4.37 18.19 23.49

Groundnut 0.75 4.59 4.10

Guar n.a. 10.51 7.43

Notes: n.a.: not available. Source: GoR (various years, a).

163. The adoption of high-yielding varieties was accompanied by increased use of chemical fertilizers. Total fertilizer consumption (NPK), which had been fluctuating between 600–800 thousand tons per year until 2003–04, grew to more than 1.35 million tons in 2010–11, with minor fluctuations thereafter (Figure 11). The intensity of fertilizer use increased from less than 50 kg/ha before 2004–05 to an average of around 70 kg/ha in the latter years.

65

164. In rainfed environments, there is a narrow window for planting to take advantage of the moisture in soil due to precipitation. The mechanization of farming makes timely sowing more feasible. The number and density of tractors increased at a consistent rate of about 7 percent per year over the past two decades. In 2013–14, tractor density was 32.2 tractors per 1000 ha of the gross cropped area, about 20 percent higher than in 1995–96 (Figure 12).

Figure 12. Trend in number and density of tractors

Source: GoR 2015 a.

h) Investment and Infrastructure

165. Capital formation is an important indicator useful to measure the economic development. The year-wise estimates of GFCF at current prices in terms of public and private sector and as percent of GSDP for the period of 1980-81 to 2014-15 is presented in Table 17. 166. The trends of Gross Fixed Capital Formation (GFCF) in Rajasthan shows that in the year 1980-81 GFCF was 13.90 percent of Gross State Domestic Product (GSDP) at current prices (2004-05 series) and it remains under 17 percent up to the year 2003-04. After 2003-04 the GFCF share in GSDP increased up to 32.87 per cent in the year 2014-15.

167. The role of private sector in GFCF is increasing each year. In the year 1980-81 share of private sector in GFCF was 54.25 per cent and it increased to 71.65 percent in the year 2014-15. The contribution of public sector in GFCF was 45.75 percent in the year 1980-81 and it declined to 28.35 percent in the year 2014-15. The trends show that the contribution of public sector in GFCF was around

Note: Fertilizer quantity on left axis; fertilizer intensity on right axis

Source: GoR 2015 a.

0

20

40

60

80

100

500

600

700

800

900

1000

1100

1200

1300

1400

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

20

13

-14

Fertilizer Use (000 t)Fertilize use (kg/ha of gross cropped area)

Figure 11. Trends in fertilizer consumption

0

5

10

15

20

25

30

35

100

200

300

400

500

600

700

800

900

Total (000) No./1000ha of GCA

66

50 percent or more up to the year 1998-99 and after that it continuously decreased till the year 2005-06 and after it again increased to 38.63 percent in the year 2010-11 (Figure 13).

Table 17: Gross Capital Formation

Year GFCF GSDP GFCF as Percent of GSDP

1980-81 87,175 627,011 13.90

1990-91 372,202 2,731,547 13.63

2000-01 1,259,234 8,979,546 14.02

2010-11 12,391,695 33,834,843 36.62

2014-15 20,125,017 61,219,447 32.87

Source: Central Statistical Office

Figure 13: Gross Capital Formation for All Industries at Current Prices (Lakh Rupees)


168. The capital formation in agriculture follows the general trends as in the case of the overall economy of the state. Private investments have always been higher than public and this pattern gains further with time over the 35-year period as presented in Figure 2.

169. The state budget is an important indicator of the sectoral focus of investments. The proportion of allocation for the various sectors of the economy in the State budget for 2017-18 is presented in Table 18.

170. Allocation to the social sector is the highest followed by the power sector. The allocation to the latter is disproportionately higher on account of the Uday Scheme which is a bailout plan for the power distribution firms. Agriculture has been allocated over five percent of the total allocation in the Financial Year 2017-18.

67

Figure 14: GCF in Agriculture by Type of Assets at Current Prices (Lakh Rupees)


Table 18: Allocation of Funds in State Budget (2017-18)

Sector Percent

Agriculture & other services 5.52

Rural development 13.17

Special area program 0.32

Irrigation & flood control 3.24

Power 20.59

Industry & minerals 1.77

Transportation 7.86

Scientific services 0.08

Social 43.57

Economic services 2.28

General services 1.60

171. Any initiative to enhance farmer’s income will require significant investments in infrastructure development. This is an area where Rajasthan is lagging as compared to several other states. The trend in investment in infrastructure (Figure xx) shows a marginal increase between 2010 and 2015. 172. The physical infrastructure of the state however is impressive. As of March 2017, Rajasthan had a total road length of around 217,707.25 km of which 7,906 km are national highways. As on February 2017, the road density of the state was 64.70 km per 100 sq. km. Under various schemes, such as the Missing Link Project, Pradhan Mantri Gram Sadak Yojana (PMGSY) & Central Road Fund, new roads are being constructed to link villages across the state. Under various programmes & projects in the state such as NABARD, Rajasthan Road Sector Modernisation Projects (RRSMP), Pradhan Mantri Gram Sadak

68

Yojna (PMGSY), etc, a total of 4,262 km of black top roads were constructed in Rajasthan as of December 2015.

Figure 15: State-wise Infrastructure Investment share in India's Infrastructure Investment

Source: ASSOCHAM Economic Research Bureau and CMIE

173. Private sector engagement in construction of roads is picking up. Work on 13 projects of 132 KV GSS and 2 projects of 220KV GSS, to be constructed under PPP, is under process. Additionally, as per Budget 2017-18, over Rs. 1,000 crores, and Rs. 800 crores have been made by the state government for construction of rural roads under Gramin Gaurav Path and modernisation of NABARD assisted road works under RIDF. An allocation of Rs. 800 crores have also been made under Pradhan Mantri Gram Sadak Yojana for the construction of 2,000 km roads and connection of 900 habitations. Around Rs. 260 crores were allocated under Central Road Fund (CRF) for the modernisation and renovation of the 250 km state highway as well as major district roads and under State Road Development Fund and PWD, the provision of Rs. 500 crores and Rs. 55,000 crores were made by the state government during 2016-17. Further, in May 2017, the Asian Development Bank decided to provide an investment of Rs. US$ 500 million for improving the connectivity and transport efficiency of state highways in Rajasthan.

174. Additional work that is expected to be undertaken in 2017-18 Budget are (a) construction work of Grameen Gaurav Path and Missing Link will be taken up in remaining 3,987 villages in the next two years, (b) construction work of 15 projects for development of 796 km of state highways, (c) renewal and upkeep of 5,000 km of village roads under RIDF-23, and (d) Rajasthan State Road Development Authority will undertake development of eight roads of 410 km length.

175. In addition to roads, good quality and uninterrupted power supply is essential for both farm and non-farm sectors. As of October 2017, Rajasthan had a total installed power generation capacity of 20,846.47 MW. This comprised of 7,565.61 MW under state owned projects, 2,690.10 MW under central sector projects and 10,590.76 MW under private sector projects, which underlines the importance of the private sector. The installed power capacity has been increasing steadily (Figure 16).

69

Figure 16: Installed Power Capacity (MW)

176. The state government is promoting the private sector’s engagement in developing the infrastructure as is evident from Table 19. Projects amounting to around Rs. 10,000 crores have been completed so far under the PPP mode while an additional Rs. 7,000 crores worth of projects are currently being implemented. The state is ambitiously planning around Rs. 40,000 crores worth of projects under this mode. Bulk of the investments are being made for constructing roads and developing urban infrastructure.

Table 19: Development Projects: Public-Private Partnership Projects

Projects completed Projects under

implementation

Projects under planning or in

pipeline

Sector Number Rs. Crore Number Rs. Crore Number Rs. Crore

Roads (SH & NH) 50 3,590 11 4,949 132 23,938

Urban Infrastructure 21 145 9 755 7 12,151

Power 1 5,333 4 948 3 770

Water 1 49 - - 2 1,813

IT 1 58 - - - -

Social 47 397 20 197 1 11

Any other 11 135 5 79 1 45

Total 132 9,706 49 6,928 146 38,728

Source: Ministry of Finance, GoI

177. The state does not have adequate infrastructure for promoting exports. Rajasthan has only one international airport in Jaipur which connects to Dubai, Bangkok, Singapore and Sharjah. SEZ Sitapura and Mahindra World City Jaipur are major SEZs present in the State. At present, only two Inland Container Depots (ICD) are there in Rajasthan, one located in Kanakpura, Jaipur and the other in Jodhpur. There is also plan to develop Dedicated Freight Corridor (DFC) connecting Nhava Sheva Sea port with Dadri near Delhi. The plan is also to develop a Delhi Mumbai Industrial Corridor on a 150 Km band on both sides of DFC. Around 39 percent of the DFC will pass through Rajasthan and hence will enhance the connectivity of various industrial hubs, ICDs and ports.

70

i) Public Investment in the Farm Sector

178. Improvements during this period were in part due to increased public investment in agriculture (Table 20 and Figure 17). Investment in the sector more than doubled, on average, from INR 7.4 billion per year during 1996–2005 to INR 15.6 billion during 2006–13, or 4 percent of total state expenditure. The share of investment in irrigation and flood control, however, declined from 7.0 percent to 4.2 percent.

Table 20. Public investment in agriculture and irrigation (2004–05 prices) INR/year (billions) Share of total

1996–2005 2006–14 1996–2005 2006–14

Total expenditure 214.9 395.9 - -

Irrigation and flood control 15.1 16.1 7.0 4.2

Agriculture and allied activities 7.4 15.6 3.4 4.0

Source: Reserve Bank of India (various years).

Figure 17. Trend in public expenditure (INR million)

Source: GOR (various years)

179. Investment priorities changed over time (Figure 18 and Figure 19). While crop husbandry continued to be the focus of most government spending (its share in total spending increased dramatically between 1996–2005 and 2006–14), the share of animal husbandry declined, as did soil and water conservation, agricultural research and education, and fisheries. Dairying and warehousing remained neglected. In the livestock sector, the development and provision of animal health and veterinary services accounted for more than two-thirds of total spending on animal husbandry and dairy development. The state allocated hardly any resources for fodder development, even though fodder is the most important input in livestock production.

0

5000

10000

15000

20000

25000

Agriculture and allied activities Irrigation and flood control

71

Figure 18. Composition of agricultural expenditure, 1996–2005

Figure 19. Composition of agricultural expenditure, 2006–14

Source: GoR (various years)

180. The increased focus on crop husbandry in public expenditures is due to an increased emphasis on horticulture and risk mitigation (through crop insurance). In absolute terms, spending on horticulture, which was negligible until 2006–07, increased to more than INR 1.2 billion (2004–05 prices) in 2012–13, or more than 12 percent of total spending on crop husbandry. At the same time, expenditure for providing crop insurance to farmers increased substantially. In 2012–13, more than INR 1.1 billion (11 percent of total agriculture spending) was spent on crop insurance. In fact, in recent years, horticulture and risk mitigation emerged as the main priorities for public spending (Figure 20).

Crop husbandry,

29.03

Soil and water conservation,

13.32

Animal husbandry ,

15.97Dairy development,

0.32

Fisheries, 1.04

Forestry and wildlife, 25.75

Food storage and

warehousing, 0.18

Agricultural research and

education, 7.60

Cooperation, 5.92

Other programs,

0.87

Crop husbandry,

46.66

Soil and water conservation,

3.51

Animal husbandry ,

14.04

Dairy development,

0.60

Fisheries, 0.56

Forestry and wildlife, 22.29

Food storage and

warehousing, 0.06

Agricultural research and

education, 4.45

Cooperation, 8.00

Other programs, 0.24

72

Figure 20. Share of horticulture and crop insurance in total spending on crop husbandry

Source: GoR (various years)

181. In addition to direct public expenditures in agriculture, the impact of public spending for agriculture also extends to supporting investments for the overall enabling environment for the sector to respond to market incentives and promote diversification and productivity. In this, infrastructure spending, which stimulates growth by enhancing farmers’ access to inputs, is particularly important. It helps reduce the costs of travel and transport to and from urban markets and ports. Improvements in market infrastructure also enable farmers to access information on pricing, competition, and world markets and accordingly help farmers better respond to demand and realize higher returns by making appropriate choices on area allocation, adoption of technologies, and use of improved inputs. 182. A key indicator for public infrastructure investment is road density. Overall road density in Rajasthan (km/per 100 sq. km of geographic area) improved considerably, from 39 km in 1995–96 to 49 km in 2004–05 to 57 km in 2014–15. Rural road density also improved, from less than 39 km before 2004–05 to more than 40 km in 2013–14 (Figure 21). 183. Infrastructure related to animal health expanded, with an emphasis on improving access to basic veterinary services (Table 21). This has likely helped in improving animal health and quality and contributed to increased livestock production and its contribution to agricultural growth.

0

2

4

6

8

10

12

14

0

200

400

600

800

1000

1200

1400

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Horticulture (Million Rs) Crop insurance (million Rs)

Horticulture (% of total) Crop insurance (% of total)

Source: GoR 2015

20

30

40

50

60

19

97-9

8

19

98-9

9

19

99-0

0

20

00-0

1

20

01-0

2

20

02-0

3

20

03-0

4

20

04-0

5

20

05-0

6

20

06-0

7

20

07-0

8

20

08-0

9

20

09-1

0

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

Road density (km/100km) Rural road density (km/100km)

Figure 21. Trend in overall road and rural road density

73

Table 21. Trend in animal health infrastructure in Rajasthan (# of units) 1992 2003 2014

Polyclinics 8 12 34

Veterinary hospitals 1009 1413 2293

Veterinary dispensaries 350 285 198

Veterinary sub-centers 120 1727 2171

District mobile veterinary units 0 6 34

Tehsil mobile veterinary units 0 0 288

Total 1487 3443 5018

Source: GoR 2015a.

j) Farm Prices

184. The decomposition exercise showed that output prices were an important source of growth in recent years. These rising prices (shown in Figure 22) were a result of several factors. Although domestic food markets (primarily food staples) were insulated by trade policy from the impact of price fluctuations of major food commodities (among which wheat is important for Rajasthan), prices of traded commodities were influenced by rising global commodity prices. Domestic wheat prices also rose during this period, driven by successive increases in their minimum support prices (MSP) supported by public procurement12. 185. Further, rising incomes led to significant increase in the demand for high-value agriculture, driving up prices for these commodities. In all, the terms of trade turned in favour of agriculture in recent years. The real prices of most agricultural commodities that remained depressed during 1996–2005 experienced robust growth afterward. Propelled by growing export demand, the real price of guar increased at an annual rate of over 10 percent, followed by onion (5.3 percent), soybean (3.8 percent), and cotton (3.6 percent). Prices of coarse cereals and high-value crops increased at annual rate of 2–3 percent.

The response of farmers to price signals can be seen in terms of market arrivals of commodities (produce

brought to the markets for sale). The state has 135 principal market yards and 311 sub-yards for

agricultural transactions. The 2006–15 period witnessed a substantial increase in market arrivals of

cereals such as wheat, pearl millet, and barley; pulses such as chickpea, moong, and moth; and fruits

and vegetables. The growth in market arrivals of oilseeds and spices, however, was sluggish (Figure 23).

Commodity-wise details on market arrivals are given in Constraints to Growth.

k) Water scarcity and inefficient use

Studies have shown Rajasthan is among regions with greatest climate sensitivity and lowest adaptive

capability. Rajasthan has only 1.16 percent of the country’s total surface water resources or 21.71 billion

cubic meters (BCM), however, 16.05 BCM of this is economically usable. The state has created the

capacity to harness and store 11.29 BCM, or around 70 percent of available water. The state has 1.72

percent of the country’s groundwater, translating into 11.36 BCM. Dependent on inflows into the rivers,

17.88 BCM is allocated through inter-state agreements, although not dependable due to political

compulsions of the upper riparian states. On paper, water use can be expanded by a further 30 percent.

However more realistic assessment of additional availability is economically usable water or 21 percent.

12 The same applies to rice, but rice is not a major commodity for Rajasthan.

74

This is broken down in Table 23, which accounts for the use of 79 percent of the 45.09 BCM of

economically available water.

Figure 23. Trends in market arrivals of agricultural commodities (1000 tonnes)

Source: www.rsam.rajasthan.gov.in.

l) Constraints to Growth

i) Water scarcity and inefficient use

Studies have shown Rajasthan is among regions with greatest climate sensitivity and lowest adaptive

capability. Rajasthan has only 1.16 percent of the country’s total surface water resources or 21.71 billion

0

2000

4000

6000

8000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Cereals Pulses

Oilseeds Spices

Fruits and vegetables

-2.5 0 2.5 5 7.5 10

Chickpea

Wheat

Rapeseed-mustard

Rice

Fruits

Potato

Pearl-millet

Other pulses

Maize

Spices and condiments

Other vegetables

Medicinal crops

Cotton

Soybean

Onion

Guar

2005-06 to 2014-15 1995-96 to 2004-05

Figure 22. Growth in prices, 1996-05 and 2006-15

http://www.rsam.rajasthan.gov.in/

75

cubic meters (BCM), however, 16.05 BCM of this is economically usable. The state has created the

capacity to harness and store 11.29 BCM, or around 70 percent of available water. The state has 1.72

percent of the country’s groundwater, translating into 11.36 BCM. Dependent on inflows into the rivers,

17.88 BCM is allocated through inter-state agreements, although not dependable due to political

compulsions of the upper riparian states. On paper, water use can be expanded by a further 30 percent.

However more realistic assessment of additional availability is economically usable water or 21 percent.

This is broken down in Table 23 ), which accounts for the use of 79 percent of the 45.09 BCM of

economically available water.

Table 22. Market arrivals for selected commodities in Rajasthan TE2007/08 TE2014/15 % change

Wheat 1115 3683 230

Fruits and vegetables 1586 2420 53

Mustard 2109 1900 -10

Soybean 718 962 34

Guar 384 694 81

Pearl-millet 385 538 40

Barley 216 486 125

Chickpea 145 452 212

Maize 238 356 50

Groundnut 212 330 56

Other pulses 166 280 69

Coriander 189 232 23

Garlic 15 195 1200

Cotton 102 64 -37

Cumin 9 35 289

Isabgol 6 19 205

Wool 18 18 0

Source: www.rsam.rajasthan.gov.in

Table 23. Water Resource Summary for Rajasthan

Category Availability in BCM (as percentage of

economically usable water)

Usage in BCM (as percentage of

economically usable water)

Percentage used

Internal surface water 21.71

(a) Economically usable 16.05 (35.6) 11.29 (31.6) 70

(b) Economically non-usable

5.66

Groundwater 11.36 (25.2) 11.77 (39.3) 104

Inter-state/external water 17.88 (39.2) 12.66 (35.4) 71

Total state water resources 50.96 70*

Total economically usable state water resources

45.09 (100) 35.72 (100) 79

Source: Planning Department (Government of Rajasthan) * Total water usage as percentage of total state water resources

76

186. As per the Central Ground Water Board, the groundwater resources in the state have been summarised in (Table 24). Over 68 percent of the blocks are overexploited while the remaining are in a critical or semi-critical state. This underlines the severity of the problem in the state.

Table 24. Groundwater Scenario in Rajasthan Dynamic Ground Water Resources

Annual Replenish-able Groundwater Resource 11.56 BCM

Net Annual Ground Water Availability 10.38 BCM

Annual Ground Water Draft 12.99 BCM

Stage of Ground Water Development 125 %

Ground Water Development & Management

Over Exploited 140 Blocks

Critical 50 Blocks

Semi-critical 14 Blocks

Source: http://cgwb.gov.in/gw_profiles/st_Rajasthan.htm

187. More than 60 percent of the productive area in the state has sandy soils with poor water-holding capacity13, resulting in huge water losses and a water use efficiency rate that is less than 30 percent in some surface water irrigation projects. 188. Three crops are grown in rabi season – wheat, rapeseed-mustard, and chickpea – that claim 58 percent of available blue water (Table 25). Therefore, any water-saving intervention needs to target these crops first. Compared to their all-India average, blue water use for most crops is higher in Rajasthan, indicating low water productivity in the state.

Table 25. Water use efficiency of different crops in Rajasthan Rajasthan National average

Green

water

(m3/ha)

Blue

water

(m3/ha)

2011/12–

2013/14

Crop

yield

(kg/ha)

2011/12-

2013/14

Blue

water use

(m3/t)

2011/12-

2013/14

Green

water

(m3/ha)

Blue

water

(m3/ha)

2011/12-

2013/14

Crop yield

(kg/ha)

2011/12-

2013/14

Blue

water use

(m3/t)

2011/12–

2013/14

Rice 3525 3990 1944 2052 5714 1723 2336 737

Chickpea 249 945 864 1093 451 1000 987 1013

Groundnut 3313 2097 1475 1421 2809 372 1356 274

Maize 3405 202 1745 116 3950 216 2252 96

Millet 3047 34 997 34 3106 46 1175 40

Pigeon pea 4459 2 763 2 3195 76 762 100

R-M 279 3145 1287 2444 485 2564 1190 2154

Sorghum 3422 22 667 33 3975 1 1160 1

Soybean 2725 61 1083 56 3349 92 1181 77

Wheat 233 3002 3297 910 566 2299 3143 732

Notes: R-M refers to rapeseed-mustard Source: Gautam et al (2017)

13 GoR (2014).

http://cgwb.gov.in/gw_profiles/st_Rajasthan.htm

77

189. Uptake of appropriate water conservation technologies like sprinkler and drip irrigation has been rather slow in Rajasthan as can be seen from Figure 24.

Figure 24.Trend in area irrigated through drip and sprinkler systems (ha)

ii) Climate Change

190. Low rainfall coupled with the erratic behaviour of the monsoon in the state make Rajasthan the most vulnerable to drought. Based on historical data the frequency of occurrence of droughts in the state is presented in Figure 25. The entire State receives scanty rainfall. The Thar Desert is particularly characterized by low and erratic rainfall, high air and soil temperature, temperature, intense solar radiation and high wind velocity. Context-specific interactions of these factors not only give rise to frequent droughts and famines, they also make local livelihoods highly vulnerable.

Figure 25. Drought Frequency for Different Districts

Source: Disaster Management and Relief Department, GoR

78

191. Widespread land degradation is a persistent challenge in Rajasthan. The climatic variability of Rajasthan which has increased aridity has a foremost impact on the soil moisture. The landholdings are scattered and farmers are unable to provide appropriate inputs in such farms. With the increase in population size and increasing trend of nuclear families, the farm size has reduced considerably.

192. More variable climate and extreme events, with likely increased incidents of droughts, and rising temperatures will directly impact crop yields as well as livestock production, not only due to heat stress but also increased susceptibility to diseases.

193. The diversified cropping pattern and the presence of livestock as a major livelihood source have helped the state in managing the wide range of risks associated with dryland agriculture. The foremost strategy adopted by the farmers during climatic variability is through changing cropping pattern followed by changing the occupational pattern.

iii) Underinvestment in agricultural research

194. Public spending on agricultural research and education rarely exceeded 0.25 percent of the state’s agricultural GDP (Figure 26), much lower than the national average of 0.60 percent. The funding intensity has also declined and is way below the national average (Table 26). This underinvestment adversely affects prospects for agricultural growth as the research and development (R&D) activities of the state universities and research institutes are constrained for lack of resources.

The need for funds for these activities is substantial: Rajasthan has three agricultural universities – two for agriculture and one for animals. In addition, the Indian Council of Agricultural Research has several agricultural research centers in the state: The Central Arid Zone Research Institute, the National Research Centre on Seed Spices at Ajmer, the National Research Centre on Camels, the Central Institute for Research on Arid Horticulture, and the Central Sheep and Wool Research Institute.

Table 26. Intensity of research and education funding by the states Share in state funding, 2014 (%) Funding intensity, 2014 (%) Funding intensity, 1999 (%)

2.45 0.11 0.18

All States 0.35 0.24

Note: Ratio of funding for research and education by the state to state domestic product from agriculture. Source: ICAR (201714)

14 ICAR (2017) Agricultural R&D Policy in India The Funding, Institutions and Impact. Suresh Pal Ed. ICAR–National Institute of Agricultural Economics and Policy Research, New Delhi

Source: GoR (various year)

0

0.05

0.1

0.15

0.2

0.25

0.3

0100200300400500600700800900

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10

-11

20

11

-12

20

12

-13

20

13

-14

Million Rupees % of AgGDP

Figure 26. Investment in agricultural research and education, (2004-05 prices)

79

iv) Underdeveloped value chains for high-value crops

195. Rajasthan is one of the largest producers of many niche commodities (e.g., coriander, cumin, fenugreek, fennel, isabgol, and mehndi) that are in high demand in domestic and international markets. However, the markets for these crops are dominated by intermediaries, resulting in farmers receiving a low share of the final price. Market arrivals of some of these commodities indicate that only 15 percent of the production of cumin and isabgol, and 33–40 percent of fenugreek, fennel, and ajwain (caraway) are sold within the state. For example, most of the cumin and isabgol from the state is sold in the Unjha market in Gujarat, implying a lost opportunity for adding value within the state. Grading and packaging at the farm level are almost absent. 196. The food processing sector is also underdeveloped. The state has a 4 percent share in the country’s manufactured output of dairy, 8.9 percent of vegetable oils, 2.4 percent of fruits and vegetables, and 1.4 percent of grains. These shares are much less than their shares in primary production (Table 27).

Table 27. Status of food processing industry in Rajasthan, 2012–13

No. of factories GVO (Rs Billion) % share of Rajasthan Primary production

Raj. India Raj. India Factories GVO Share Output

F&V 12 825 2 86 1.45 2.39 7.9 F&V

Edible oils 199 2620 117 1317 7.60 8.89 18.5 Oilseeds

Dairy 64 1468 33 825 4.36 3.99 10.0 Milk

Milling 183 15559 23 1457 1.18 1.60 7.5 Grains

An. feed 148 7485 26 1815 1.98 1.44

Beverages 27 724 6 224 3.73 2.52 Source: Annual Survey of Industries, GoI.

Notes: Raj. = Rajasthan; GVO=gross value of output; F&V=fruits and vegetables; An. Feed=animal feed.

v) Feed scarcity

197. Rajasthan has huge populations of both large and small ruminants, and feed and fodder are often scarce15. Considerable seasonality and uncertainty arise in the availability of feed and fodder. Every village in western Rajasthan has a traditional Gauchar (wasteland) area used for grazing, but due to poor management of these common lands, grazing resources (barren and unculturable land, culturable wasteland, fallows, and permanent pastures and grazing lands) have shrunk, impacting pastoral livelihoods. Although traditional agroforestry practices involving species such as Prosopis cineraria, Tecomella undulata, and Salvadora oleoides are an important source of livelihood support during drought, intensive agriculture has reduced these practices. As a result, grazing resources declined by 1 percent per year since 1995–96. 198. High quality manufactured compound feed is the way forward, but current production is insufficient. The state has 6 cattle feed manufacturing units in the organised sector under the control of Rajasthan Cooperative Dairy Federation) having a production capacity of 1650 metric t per day which is grossly insufficient to meet the actual requirement. The presence of private sector in feed manufacturing is limited.

15 GoR (2015b). The State Livestock Policy notes that the state has a 40 percent deficiency in fodder.

80

vi) Underdeveloped livestock markets and infrastructure

199. Rajasthan is the country’s second-largest producer of milk (more than 11 percent of total production), but the institutions linking dairy farmers to markets remain weak. In 2014–15, the state had about 14,600 village dairy cooperatives, which procured about 0.92 million tons of milk from 730,000 farmer-members. These cooperatives accounted for 5.5 percent of the milk produced in the state, compared to the national average of 10 percent from dairy cooperatives.16 The state’s cooperatives have a total of 18 milk plants, with a total processing capacity of 2.4 million liters per day. There are also 20 privately owned plants, with a processing capacity of 3.4 million liters per day.17 Assuming that cooperative and private processors procure milk in proportion to their processing capacity, the private sector procured about 1.3 million tons of milk in 2014–15. Together, the organized sector procured 13 percent of the total milk produced. 200. Markets for small ruminants are underdeveloped. The state has only two registered slaughterhouses, which indicates that most goats and sheep are traded live and slaughtered outside the state, depriving farmers of the benefits of value addition. Value chains for small ruminants are yet to develop. A major challenge is the dispersion of smallholder producers which makes aggregation a challenge, and in a market dominated by intermediaries at the low end of a long value chain, the farmers are unlikely to secure a significant share of the value of the final product delivered to consumers.

201. Although animal health infrastructure has improved, the breeding infrastructure in the state is poor with only 2 frozen semen centers and 4500 AI centers. The extension system for delivery of livestock services is poor. The animal health services concentrate on curative treatment rather prophylactic control.

vii) Ban on Animal Slaughter

202. Through a May 23, 2017, notification, the Ministry of Environment, Forests, and Climate Change amended the Prevention of Cruelty to Animals (Regulation of Livestock Market) Rules, 2017 that prevented a ban on the sale of cattle for slaughter in animal markets. This has badly impacted the livestock sector in Rajasthan. Farmers normally bring their redundant animals to livestock markets from where traders purchase and transport the cattle to abattoirs. The share of meat production is presented in Table 28.

Table 28. Share of Meat Production in India (2015-16) (percent)

Rajasthan India

Poultry 16 46

Cattle - 5

Buffalo 17 23

Sheep 22 7

Goat 40 13

Pig 5 6

Source: GoI (2015) Basic Animal Husbandry and Fisheries Statistics 2015

203. For a country with predominantly vegetarian traditions, and with the majority of the population averse to consuming beef, it is remarkable that India is currently counted as a major beef exporter. Beef from India largely comprises buffalo meat, also known as carabeef. Under the 11th Five Year Plan (2007-12) of the Planning Commission of the Government of India, initiatives such as “The Salvaging and Rearing of Male Buffalo Calves Scheme” contributed to an increase in the population of male buffaloes,

16 National Dairy Development Board (2015). 17 GoI (2014).

81

while “The Utilization of Fallen Animals” scheme led to an improvement in carcass utilisation. These two key policy initiatives, along with an increased rate of slaughter, boosted buffalo meat production from about 2.5 Mt in 2009 to 4.78 Mt in 2012-13 (APEDA18). 204. It was expected that these policies will continue and production of buffalo meat will continue to grow. India has also enhanced investments in the meat slaughter and food safety sectors. The Agricultural and Processed Food Products Export Development Authority (APEDA) of India has provided financial assistance for setting up a number of integrated abattoirs, slaughterhouses, and meat processing plants. It has also supported the modernisation of a large number of abattoirs across the country. These have contributed to improving the quality of the meat and also meeting safety requirements for exports. 205. For a number of reasons, India is considered to have a comparative advantage in producing and exporting carabeef as against traditional beef producers and exporters like Brazil and Australia. First, commercial beef-ranching is not practiced in India and the male and unproductive female buffaloes are allowed to be slaughtered. Since these animals do not produce milk, they are rarely fed expensive nutritious feeds and therefore the cost of producing meat is much lower than other beef-exporting countries. Second, as the production is going up while the domestic market is limited, India will have a substantial surplus to export which, at present, stands at around 30% of its total production. Third, the beef produced in India is halal meat, which is preferred in a number of South Asian, African and the Middle Eastern markets. The potential for India to increase its exports competitively is therefore enormous. 206. Most of India’s buffalo meat is shipped to South East Asian countries, followed by Middle-Eastern and African countries (Figure 27). Viet Nam with a 50% share, is the largest market. Sanitary standards have limited India’s access to new markets, especially to OECD countries to which exports are minuscule.

Figure 27. Export Destinations of Buffalo Meat from India: 2016-17

Source: APEDA

18 http://agriexchange.apeda.gov.in/India%20Production/AgriIndia_Productions.aspx?productcode=1018

http://agriexchange.apeda.gov.in/India%20Production/AgriIndia_Productions.aspx?productcode=1018

82

207. After the new definition of cattle as per the Prevention of Cruelty to Animals (Regulation of s Livestock Market) Rules, 2017, buffalo meat may now be treated as part of cattle meat. The resultant share may now be 28 percent of the total meat production. Cattle meat is loosely called beef. Though, buffalo meat goes by a different name in different countries. In India, buffalo meat is categorised as beef. As most of the states have banned cow slaughter, the Indian beef largely the buffalo meat was brought under the ambit of slaughter ban. 208. In May-end 2017, the Madras High Court granted an interim stay on the implementation of the rules, specifically Rule 22(b)(iii) that required a person bringing cattle for sale to the market to furnish a written declaration that it would not be sold for slaughter. In July 2017, the Supreme Court extended the stay to the entire country. In case this stay is vacated, the farmers, meat processors, exporters, and the leather industry will be adversely affected. Also, several manufacturing units including those of soap, toothpaste, buttons, paint brushes, surgical stitches and musical instruments depend on cattle slaughter for their business. 209. On March 27, 2015, the Rajasthan state cabinet passed the Rajasthan Camel (Prohibition of Slaughter and Regulation of Temporary Migration or Export) Bill, 2015. The bill, banning the export of dromedaries from the state, was drafted to check their declining numbers.

210. An adult camel needs 12-15kg of food every day, which comes to Rs. 100, and a concentrate that costs around Rs. 150. So, a camel owner has to spend at least Rs. 250 every day to keep it healthy. When that becomes difficult, or camels fall sick, owners have little option but to sell them. The law has caused a drastic fall in the price of camels. Consequently, large numbers of camels are abandoned by the owners and this, in turn, causes crop losses as these animals turn to cropland for feeding.

viii) Declining Agro-exports

211. Agro and food products are among the top export items from Rajasthan, with a share of nearly 9 percent of the State’s total exports (Figure 28). The major agro-products of the State include oilseed, rapeseed, mustard, soya bean, coarse creeds, and spices. In 2013, agro and food products were the largest export item for Rajasthan contributing in excess of 37 percent to the total exports from the State. 212.

Figure 28. Sectoral Contribution to State Exports (2015-16)

Source: DGCIS

213. Growth in the sector was supported by increased exports of guar-gum — an extract of guar seeds used in the petrochemical industry. However, the fall in crude oil prices has adversely impacted this sector, with the exports falling by nearly five times from Rs. 14,517 Cr in FY13 to Rs. 3,094 Cr in FY16. Owing to this, the share of Rajasthan in total exports of agro and food products from India has declined from 7.2 percent in FY13 to 1.5 percent in FY16 (Figure 29).

83

Figure 29. Trend in Export of Agro and Food Products from Rajasthan

84

7) PROFILE OF THE SAMPLED DISTRICTS

AJMER

214. Ajmer district is situated in the centre of Rajasthan between 25° 38' and 26° 58' north latitudes and 73° 54' and 75° 22’ east longitudes. The total area is 8481.4 square km. The district is composed by four-divisions namely Ajmer, Beawer, Kekri and Kishangarh. The northern part of the district is covered by Ajmer sub division which is in triangular shape, along the south-west of the district lies Beawar which has an irregular terrain. Kekri sub-division forms the south-east part of the district which has two narrow strips of land that separates from each other. The distinguishing feature of the district is the Aravalli range, the strong barrier that divides the plains of Marwar from the high tableland of the Mewar which comes into prominence near Ajmer town.

Figure 30: Ajmer District

Source: District Census Handbook 2011

215. Ajmer district has 8 blocks, namely, Arai, Peesangan, Kishangarh, Srinagar, Jawaja, Masuda, Bhinay and Kekri. As per census 2011, around 59.9% of the total population lives in rural and 40.1% in urban area. In Ajmer District, the study extensively covered the villages of Masuda block, namely Peeplaj, Amritpura, Ranisagar, Devgarh and Bhawanipura which were randomly selected.

85

a) Climate

216. The district has hot and semi-arid climate. It experiences monsoon months between June and September, with summer months from April to July. The winter months are mild and temperate from November to February. The Climate of Ajmer vary largely throughout the year with extreme dryness and scanty rainfall. The maximum and minimum temperature recorded in Ajmer Centre was 46.60 and 3.30 respectively, with 26.4 being the average. The annual normal rainfall of the district is 601.8 mm. During the south-west monsoon season the humidity is very high at 45 percent while the rest of the year the air remains dry.

b) Soil

217. The major soils found is medium brown loamy which is of 51.7% in the district19. The sandy loam is found in Ajmer, Kishangarh and some parts of Kekri Tehsils. Black cotton soil is found in Sarwar and some parts of the Kekri Tehsil, whereas in some pockets of Kishangarh, Ajmer and Beawar tehsils of the district, alluvial and gray brown soil is available. In the sandy hills of Pushkar sugarcane is grown without irrigation as the water table is high enough to preserve moisture in soil.

c) Land utilization

218. Land use and land management practices have a major impact on natural resources including water, soil, nutrients, plants and animals. Both physical and human factors determine the utilization of land, such as soil, climate and duration and occupation of area. According to Agriculture Statistics of Rajasthan (2014-2015), the reporting area for land utilization is 842994 ha and the forest area constitutes of 57792 ha (6.86%) While the total fallow land is 56335 ha (6.68%) the total area not available for cultivation is 136580 ha (16.20%) and other uncultivated land like grazing land, tree crops and grooves and wasteland is 148097 ha (17.57%). The net sown area is 444190 ha (52.69%).20

d) Forest

219. The forest crop in the Ajmer district is very poor and the commercial tree like teak, Sal and Shisham do occur but hardly reach and appreciable size in the area. Dhokra, Salar, Khejra, Khair, Ber, Aranja and Koulasse and the Cenchrus ciliary are some of the important species of Ajmer.Black duck ravine deer and Nil Gai are found in Ajmer and hazes partridges and gray are common and found in all seasons. The district forest area is 277 sq.km21.

e) Ground water resources

220. As per Ground Water Resources Central Ground Water Board and Ground Water Department, Government of Rajasthan the total annual ground water resources and net annual ground water availability in the district is estimated at 869.51 mcm and 794.82 mcm respectively (March 2009). In Behror, Kotkasim and Reni blocks, the stage of ground water development has exceeded 200% and all blocks are declared as overexploited.

19 Agriculture Contingency Plan, Dept. of Agriculture Cooperation & Farmers welfare, Govt. of India. 20 Agriculture Statistics, Department of Agriculture, Govt. of Rajasthan 21 India State of Forest Report 2011, Forest Survey of India

86

Table 29: Status of Ground Water Availability (March 2004) Groundwater availability

and use No. of blocks

Net Annual GW availability (mcm)

Overexploited 6 319.57

CrItical 2

Semi-critical

Safe

Source: Central Ground Water Board, Ministry of Water resources, Government of India.

f) Irrigation

221. The net area under irrigation is 92,807 ha (11.01% of the total geographical area). Dug wells are the main source of irrigation (83.32%). Bore wells and tube wells are limited due to low discharge.22 The source wise irrigated area in terms of percentage is listed in Table 30.

Table 30: Source Wise Irrigated Area in Terms of Percentage Sl. No. Means of irrigation Irrigated area (ha)

Gross Area Net Area

1 Canals

a IGNP 0 0

b Chambal 0 0

c Gang 0 0

d Bhankara 0 0

e Others 3.19 3.75

2 Tanks 3.92 4.59

3 Wells

a Tube 4.14 3.01

b Others 77.91 76.31

4 Other Sources 10.85 12.33

5 Total Gross Irrigated Area 172139 145645

Source: Agriculture Statistics, Department of Agriculture, Govt. of Rajasthan

g) Cropping pattern

222. There are two main cropping seasons in Ajmer, Kharif and Rabi as in the rest of the state. The cultivable land and the area sown in the district are 645563 ha and 444190 ha respectively, of which the net irrigated area is 145645 ha in the district. The main crops grown in the district area are Bajra, Jawar, Pulses, Maize, and groundnut, wheat, barley, pulses and oil seeds. The area and the production of the crops in both kharif and rabi season in the year 2014-2015 is presented in Table 31.

22 Central Ground Water Board Ministry of Water Resources Government of India

87

Table 31: Kharif crops (2014-2015) Kharif crops (2014-2015)

Crops Area (in hectare) Production (in tonnes)

Cereals 234142 196600

Pulses 107402 42955

Food grains 341544 239555

Oilseeds 11419 5116

Others 56328 82064

Total 409291 326755

Ajmer

Rabi crops (2014-2015)

Cereals 86972 180261

Pulses 83328 39485


Oilseeds 48391 33932

Others 27068 6368

Total 245757 260046


h) Crop Insurance

223. The area insured in the district under Pradhan Mantri Fasal Bima Yojana (PMFBY) is reported to be 40,306.03 ha. This has helped the farmers to overcome the crop losses due to various calamities. The given below table shows the status of crop insured by the farmers.

Table 32: Status of Crop Insurance

Total area insured (Ha) 40,306

Total amount insured (Crores) 15.37

Crop wise policy count 67,334

KCC wise policy count 31,252

Source: Pradhan Mantri Fasal Bima Yojana, Government of Rajasthan

i) Animal Husbandry

224. The livestock sector in Ajmer district is a major economic activity of the rural people. As per the 19th Livestock census of 2012, there are total number of 19,65,449 livestock which would include cattle, buffalo, sheep, goat, horse and ponies, donkeys and mules, camel and pigs and the total number of poultry is 23,77,842. Following is the number of animals and poultry in the district.

88

Table 33: Livestock and Poultry Population (2012) Name of the animal Numbers

Cattle 4,04,726

Buffalo 4,38,804

Sheep 3,65,108

Goats 7,30,758

Horses and Ponies 1,849

Mules and donkeys 2,136

Camels 1,516

Pigs 20,552

Poultry 27,37,842

Source: 19th Livestock Census 2012, Govt. of Rajasthan.

j) Infrastructure

225. Infrastructure is the basic requirement of economic development. Even though it does not directly produce goods and services, however it facilitates production in primary, secondary and tertiary economic activities by creating positive external economies. The five important aspects of infrastructure entail transport, communication, public health, banking and education. In the district of Ajmer, the roads extend up to 1860 kms, with the railways covering 97.96 kms. There are 54 rural banks and 2018 primary and middle school. There are 54 Primary health centres and 11 community health centres. The detail of infrastructure in Ajmer is in Table 34.

Table 34: District at a glance (2015) Transport Classification Distance (in kms)

National Highway 163

State Highways 373.7

District Road (Main) 691.1

District Road (other +Rural) 632.3

Railways

Length of rail line 97.96

Communication

Post Offices 410

PCO (Local & CCB)

Telephone Exchange Center 96

STD Public Call 1261

Internet Connection

Broadband Connection

ISDN Connection

PCO (RURAL) 203

Public Health

Allopathic Hospital 75

Ayurvedic Hospitals 139

Unani Hospitals 6

Community Health Centres 11

89

Primary Health centres 43

Dispensaries 13

Sub health centres 41

Upgraded Sub centres 54

Homeopathic Hospitals 4

Banking

Commercial Banks 174

Rural Bank Products 54

Co-Operative bank products 13

PLDB Branches 3

Education

Classification Numbers

Primary School + Middle School 2018

Secondary & Senior secondary schools 368

Colleges 18

Engineering College

Poly technique

ITI

Technical University

University 3

Source: MSME Development Institute, Ministry of MSME, Govt. of India

k) Trade and Commerce

226. Trade and commerce play an important role in economic development. Given the importance of agriculture for poverty reduction, a well-established system to in place to support trade of this produce is of utmost importance. Rural infrastructure is particularly important in enabling agricultural exports in developing countries. 227. Ajmer, Beawar, Kishangarh (Madanganj), Vijaynagar and Nasirabad are the main trading centres in the district. The “Mandi” in the town of Bewar is famous for raw cotton and wool which are exported to Mumbai, Kanpur and Mirzapur. Krishi Upaz Mandies are the government- autonomous society of farmers selected for the production and sale of agricultural produce which protects the farmer from the exploitation of middlemen. Kekri is famous for trade of wheat, moog etc.

228. The list of Krishi Upaz Mandies (KUM) and the main commodities for each is presented in Table 35.

Table 35: Number of Krishi Upaz Mandies (KUM) and Major Commodities Sl.No KUM Name Class Arrival of major crops

1 Ajmer (F &V) C Onion, Banana, Mango, Potato

2 Ajmer (G) B Wheat, Maize, Bajra, Gram

3 Beawar C Cotton, Guar, Jowar, Maize, Wool, Gram, Mustard

4 Bijaynagar A Cotton, Urad, Guar, Mustard, Gram, Wheat

5 Kekri SA Mustard, Moong, Urad, Jeera, Gram, Jowar, Wheat

6 Madanganj Kishangarh B Moong, Jeera, Jowar, Gram


90

l) Industries

229. In Ajmer district 8 medium scale Industries and 17663 small scale & cottage Industries were registered up to March, 2011. The total investment involved was Rs. 92797.54 lac which generated employment opportunities to about 87420 persons. The main Industries of the district are based on textile, food products, leather and leather products, wood products, feldspars and quartz grinding, marble, asbestos and cement. Table 36: Classification of Industries


Total Industrial units 19221

Registered industrial Units 17663

Registered Medium & Large Units 8

Estimated average number of daily workers employed in Micro & Small

87420

Employment in Medium & Large Industries 3529

Number of Industrial Area 30


m) Minerals and Mining

230. The geology of district is that of the Aravalli range which extends throughout the district except the North-Western part which is covered by sand dunes. It is quartzite section which forms highest peaks above the general level of range at Taragarh near Ajmer. Granites, felspathics schists, calgeneisses marble and quartzites exposed along the Ajmer Nasirabad pass are the best rocks in the region. Gneiss and granite are predominat in the Beawar section but towards Ajmer, the granite alternates with limestone, micaschists and felspathetic quartzite, coarse grained marble, lime and building stone are seen in the South-West plains of Ajmer. Mica, asbestos, vermiculite, soap stone, masonry stone and brick are the other minerals found in this area. The production of major mineral in different areas of the district can be seen in Table 37:

Table 37: Production of Minerals (2015-2016) Mineral Leases Area Production Sale Value Revenue Employment

(ha) (‘000 Tons) (Crore Rs.) (Crore Rs.) (Nos.)

1 Wollastonite 9 60.55 15.13 1.21 0.2 11

2 Magnesite 1 4.75 0 0 0.001 0

3 Lead-Zinc 1 480.45 760.10 159.62 81.62 400

4 Garnet 8 37.425 0 0 0.01 0

5 Vermiculite 1 4.2 0.10 0 0.0098596 5

6 Limestone 1 856.33 1635.30 29.44 12.35 0

TOTAL 21 1443.71 2411.56 190.27 94.18 416

Production of Minor Minerals (2015-16)

1 Marble 109 185.24 1629 212 40 830

2 Granite 31 70.66 149 22 3 251

3 Masanory stone 237 230.00 275 663 7 1081

4 Quartzite 1 1.00 0.00 0.00 0.01 0

91

5 Patti Katla/ Phylite-Shisht

6 13.50 3265 66 0.29 62

6 Brick earth 0 0.00 468 36 1.09 520

7 Kankar-Bajari 3 1801.71 367 16 1.19 185

8 Felspar/Quartz 504 2331.64 776 23 5.59 1587

9 Quartz 66 626.25 44 2 0.30 95

10 Mica 7 33.60 3 0.63 0.02 7

11 Mitti 0 0.00 578 2 0.20 25

12 Inc. from Govt. Deptt. 0 0.00 0.00 0.00 2.96 0

13 Misc. Income 0 0.00 0.00 0.00 1.89 0

Total 964 5293.600 34,803.43 1046.99 64.77 4643

Source: Mineral Statistics Report (2015-2016), Department of Mines and Geology, Government of Rajasthan

92

UDAIPUR

231. The district is situated at the southern tip of Rajasthan adjoining with Gujarat state. It lies between 23.46' and 25.5' North latitudes and 73.9' and 74.35' east longitudes, having a geographical area of 13618 sq.km. Udaipur is bounded by Rajsamand and Pali district in the north and by Dungerpur and Banswara district in the south, on the east by Bhilwara and Chittorgarh and on the west by Pali and Sirohi Districts and Sabarkaritha District (Gujarat). The district is surrounded by Aravalli ranges from North to East. While the eastern part has a vast stretch of fertile plains, the northern part consists of elevated plateaus and the southern part is covered with rocks, hills and dense forest.

232. The district is divided into 11 blocks and 80.2 percent are rural population and 19.8 percent are in urban area. This region is inhabited mostly by Scheduled tribes (ST), mainly Bhils and Meenas as 49.7% of the total population belongs to ST (census 2011). The study team visited four villages, namely, Jhapla and Mortongri in Ghirwa block and Budia and Medi villages in Kotra block.

a) Climate

233. Udaipur district is marked by extreme dryness and scanty rainfall and large variation in temperature. On the whole, it has a healthy climate without much significant variations. While the hottest months are May and June, the coldest month is January. The rainy season starts from July and lasts till September and has an annual average rainfall of 637 mm.

b) Soil

234. The major soils found are Red gravelly loam hilly soil (47.375%) and Brown loamy medium to deep soil (34.46)23. All kinds of soil are found in this district. Clay loam soil soil is available in Gogunda, Kotra, Jhadol, Girwa, Bargaon, Mavli and Bhindar while the red loam soil in Kherwara, Sarada, Salumbar and Dhariawad. Generally, the soils in the western parts of the district are stony while yellowish brown

soil is met in the small portions of eastern and southern parts.

23 Agriculture Contingency Plan, Dept. of Agriculture Cooperation & Farmers welfare, Govt. of India.

Figure 31: Udaipur District (Source: District Census Handbook)

93

c) Land utilization

235. The continued interplay of physical and human factors like topography, soil and climate as well as the density of population and occupation of the area, there are differences in land utilization. According to Agriculture Statistics of Rajasthan (2014-2015), the reporting area for land utilization is 1388255 ha and the forest area constitutes of 397334 ha. While the total fallow land is 82871 ha, the total area not available for cultivation is 472133 ha and other uncultivated land like grazing land, tree crops and grooves and wasteland area 203727 ha.

d) Forest

236. Major portion of the district is covered with rocks and is hilly area. It covers 3118 sq.km24 under forests. The forest of the district is of northern tropical dry deciduous type of forests. The produce from forests area is constitutes as source of income for the people in rural area. The major and minor forests produce includes timber, firewood, gum, tendu, kattha, honey, bamboo, wax, barks and grasses.


237. As per Ground Water Resources Central Ground Water Board and Ground Water Department, Government of Rajasthan the total annual ground water resources and net annual ground water availability in the district is estimated at 265.83 mcm and 240.53 mcm respectively (March 2009). The stage of ground water development in the district is 107% which would mean that ground water is already exhausted in five blocks and categorized as “over-exploited”. Four blocks fall under “critical” and two blocks fall under “semi-critical. Moreover, there is high fluoride content in the rural areas located in the northern and southern part of the district while chloride concentration in major part of the district is within 500 ppm. Table 38: Status of Ground Water (2009)

Groundwater availability and use

No. of blocks Net Annual GW availability (mcm)


Critical 4

Semi-critical 2


f) Irrigation

238. The net irrigated area in the district is 99,664 ha. Wells are the primary source of irrigation in the rural area. As given in the table below, 84.01% area is irrigated using water from wells as alluvial area is restricted to river beds. The area irrigation by different means of irrigation in 2014-15 in the district is as given in Table 39:

Table 39. Source Wise Irrigated Area in Terms of Percentage

Sl. No. Means of irrigation Irrigated area

Gross Area Net Area

1 Canals

a IGNP 0 0

b Chambal 0 0

c Gang 0 0

24 India State of Forest Report 2011, Forest Survey of India

94


Gross Area Net Area

d Bhankara 0 0

e Others 3.45 3.59

2 Tanks 11.01 11.32

3 Wells

a Tube 12.89 12.83

b Others 71.55 71.18


5 Total Irrigated Area 103735 99664


g) Cropping pattern

239. There are two cropping seasons in Udaipur, Kharif and Rabi season. However, kharif remains the main crops of the district as it depends on rain. Some farmers also cultivate several vegetables during Zaid season whose farm is near the river beds during summer. The cultivable land and the area sown in the district are 342033 ha and the net sown area is 232190 ha. Of which the net irrigated area is 99664 ha in the district. The main crops grown in the district are wheat, maize, urad, chana, BT cotton, mustard, bajra, tur. The area and the production of the crops in both kharif and rabi season in the year 2014-2015 is given in Table 40:

Table 40. Kharif and Rabi Crops Production (2014-15)

Kharif crops (2014-2015)


Cereals 181597 275746

Pulses 10820 5372



Others 23827 34375

Total 227482 326210



Cereals 86518 214681

Pulses 10626 10482



Others 10032 1726

Total 118770 237111


95

h) Crop Insurance

240. The area insured in the district under Pradhan Mantri Fasal Bima Yojana (PMFBY) for Rabi 2016-17 and Kharif 2017 is reported to be 60,95,634 ha. The table below shows the status of crop insured by the farmers.

Table 41. Status of Crop Insurance Rabi 2016-17 Kharif 2017

Farmers Insured (numbers) 29,18,710 53,39,499

Area insured (ha) 30,32,969.76 60,95,634.00

Sum insured (Lakh Rs) 7,62,479.21 10,06,156.88 Gross Premium (Lakh Rs) 56,597.89 1,73,568.95

Source: Pradhan Mantri Fasal Bima Yojana (https://pmfby.gov.in/stateWiseDataPage). Accessed on 05 Nov 2018

i) Animal Husbandry

241. The livestock sector in Udaipur district is at developing stage. As per the 19th Livestock census of 2012, there are over 27 Lakh heads of livestock which include cattle, buffalo, sheep, goat, horse and ponies, donkeys and mules, camel and pigs and the total number of poultry is 5,04,353. Cattle rearing is mainly for milk production for own consumption and sale. The population of goats are quite high which is reared mainly for production of meat. The number of animals and poultry in the district are presented in Table 42.

Table 42. Livestock and Poultry Population (2012) Name of the animal Numbers

Cattle 9,72,182

Buffalo 5,53,635

Sheep 1,40,626

Goats 11,06,814

Horses and Ponies 738


Camels 2,695

Pigs 1,485

Poultry 5,04,353


j) Infrastructure

Transport

Classification Numbers (in Kms)


State Highways 579

District Road (Main) 270

District Road (other +Rural) 680

Railways

Length of rail line 357

https://pmfby.gov.in/stateWiseDataPage

96

Communication


Post Offices 496

PCO (Local & CCB) -

Telephone Exchange Center -

STD Public Call 1587

Internet Connection -

Broadband Connection -

ISDN Connection -

PCO (RURAL) 860

Public Health




Unani Hospitals -



Dispensaries 10


Upgraded Sub centres -

Homeopathic Hospitals -

Banking



Rural Bank 39

Co-Operative bank 28

PLDB Branches -

Education




Colleges 34

Engineering College -

Poly technique -

ITI -

Technical University 3

University -



242. The major items exported outside the district are district are cotton, wool, woollen goods, tobacco, timber, bark, barley, wheat, grain, medicines, bamboo, honey, etc. While the district imports salt, sugar, rice, kerosene oil, iron, glass, petrol, machinery, stationery, electric goods etc.

97

243. The main trading centre is in Udaipur city. There are two Mandies for grain and the other for

fruits and vegetables. The principal commodities brought in Dhan Mandi are Wheat, Maize, Gram,

Mustard, Gura, Urad and in fruits and vegetables mandi, the major products are Ratalu, Arabi, Ginger,

Custard apple. The Krishi Upaz Mandi existing in the district and the major commodities that are brought

in are given in Table 43.

Table 43: Krishi Upaz Mandies (KUM) and name of main commodities

Sl.No KUM Name Class Arrival of major crops

1 Fatehnagar C Maize, Groundnut, Mustard, Wheat

2 Udaipur (Grain) SA Wheat, Maize, Gram, Mustard, Gura, Urad

3 Udaipur (F & V) C Ratalu, Arabi, Ginger, Custard apple

4 Chotisadri C Wheat, Maize, Soyabean, Isabgol, Ajwine, Mustard, Garlic


l) Industries

244. The total industrial units in Udaipur are 4021. The cottage industries found in the district include manufacturing of agricultural implements, dyed ivory and wooden toys, cloth dyeing and printing, leather shoe making, tie and dye and handloom weaving. Artisans in the rural area also carry out traditional industries like goldsmith, pottery, bamboo works, stone carving etc. which is mostly sold in the local market. The district is rich in minerals, however, except for few big registered factories, it remains industrially background. An overview of the district industrial profile is given in Table 44.

Table 44. Classification of Industries Classification Numbers


Registered industrial Units


Estimated average number of daily workers employed in small scale industries

27423


Number of Industrial Area



245. The district has large variety of important minerals as the value of minerals produced is quite high. The important metallic and non-metallic minerals found are ores of copper, lead, zinc and silver. The district has also industrial mineral rocks like phosphate, asbestos, calcite, limestone, barytes, emerald and marble etc. are important.

Table 45: Production of Minerals (2015-2016)

Production of Major Minerals (2015-2016)

S. No.

Mineral Leases Area Production Sale Value Revenue Employment

(Ha) (‘000 Tons) (Crore Rs.) (Crore Rs.) (Nos.)

1 Lead 1 3443.7 44 101 42 2123

2 Zinc 0 0 58 155 39 0

3 Silver 0 0 0.005 21 8 0

98


4 Rock-

Phosphate

3 1998.87 1.6 316 54 615

5 Bauxite 1 123.5 0.03 0 0.03 6

6 Wollastonite 1 112.5 0 0 0 0

7 Limestone 2 916.64 0 0 0 0

8 Kyanite 2 9.01 0 0 0 0

9 Selenite 1 4.95 0 0 0 0

TOTAL 11 6609.170 1690 594 1444602000 2744

Production of Minor Minerals (2015-2016)

S.No. Mineral Leases Area Production Sale Value Revenue Employment

(in

Hectare)

(Tons) (Rs.) (Rs.) (Nos.)

1 Marble 101 163.84 541 69 13 932

2 Barytes 1 31 3 0.25 0.03 11

3 Granite 3 6.35 8 1.6 0.19 35

4 Murram/Gitti

/

Gravel

0 0 111 1.1 0.25 0

5 Limestone

(Burning)

38 952.57 49 1.7 0.44 296

6 Masonary

Stone

152 163.3 2431 108 11.45 735

7 Phylite-Shist 9 17.74 9 0.04 0.06 35

8 Serpentine 188 216.73 656 98 15.75 1325

9 Soapstone 77 2530.4 162 6 2.51 400

10 Dolomite 4 139.923 358 21 2.94 21

11 Phyrophilite 2 32.08 373 0.1 0.03 12

12 Ochres

(Red Ochre)

4 137.2 37 1.6 0.09 21

13 China Clay 4 137.2 0.34 0.02 0.002 24

14 Calcite 13 207.2 411 1.5 0.72 69

15 Felspar 58 328.85 230 5.7 1.38 125

16 Quartz 58 657.7 839 0.2 0.07 175

17 Silica Sand 2 9 154 0.1 0.01 12

18 Quartzite 1 1 0.07 0.001 0.002 2

19 Inc. from

Govt. Dept.

0 0.00 0 0 4.76 0

20 Misc. Income 0 0.00 0 0 1.23 0

Total 715 5732.083 4655 320 55.49 4230

99

JODHPUR

Figure 32: Jodhpur District (Source: District Census Handbook)

246. Jodhpur district is situated in the western part of Rajasthan, having a geographical area of 22,850 sq.kms. The district lies between 26°0’ and 23°37’ at north latitude and between 72°55’ and 73°52’ at east longitude. The district covers 11.60% of the total area of arid zone of the state. The land surface of the district is flat and sandy with an exception of some parts of Bilara and Osian tehsils. It is comprised of three distinct physiography units which include the alliuvial plains, Escarpments and Ridges and sand dunes. In the east of Shergarh lies the plain from Bilara which is encircled by a group of hills, isolated hillocks and ridges separated by alluvium and sand filled valleys. Most part of the western and north-western part of the district is characterized by sand dunes. River Luni is the only important river in the district which flows for a distance of about 75 kms.

247. Jodhpur district is divided into 10 blocks and has a rural population of 65.7% and 34.2% urban population as per the census data of 2011. It consists of 16.5% scheduled caste population and only 3.2% scheduled tribe population. The study team visited four villages in the district, namely, Tolesar Charnan and Judiya villages in Balesar block and, Dungerpura and Ratanpura villages in Shergarh block.

100

a) Climate

248. As part of the Thar Desert comes within the district, it experiences extreme heat in summer with hot dry winds and cold in winter which is spread over November to March. The temperature varies from 49° C in summer to 1° C in winter. It receives scanty rainfall and occurs during late June to September. The average rainfall is reported to be 360 mm.

b) Soil

249. The major soils found is medium light yellowish brown loamy which is of 29.9% in the district25. The Central Arid Zone Research Institute (CAZRI) and the State Soil Survey Department has classified eleven types of soil in Jodhpur. The main six types of soil are deep to very deep and has excess of seepage of water areas of sand dunes, deep Sandy Soil which has excess of seepage of water, normal to medium deep texture is soil which has sufficient capacity to preserve moisture, plain shallow rocky soil which is uncultivable, deep texturized land with moisture which is saline and where level of ground water is high and very deep, light texturized fertile soils.

c) Land utilization

250. There are spatial and temporal differences as land utilization depends on factors like topography, soil and climate as well as on the density of the population, land tenure, technological advancement of the population. The continued interplay of physical and human factors therefore varies the utilization of land. According to Agriculture Statistics of Rajasthan (2014-2015), the reporting area for land utilization is 22,56,405 ha and the forest area constitutes of 8,378 ha. While the total fallow land is 5,75,812 ha (25.52%), the total area not available for cultivation is 2,22,363 ha (9.85%) and other uncultivated land like grazing land, tree crops and grooves and wasteland is 1,33,849 ha (5.93%). The remaining net sown area constitutes 13,16,003 ha (58.32%).

d) Forest

251. The total forest area is 93 sq.km26. The forest is classified as scrub thorn forest and is available around the hills. As the district has sandy soil and dry climate of the district, only shrub and thorny bushes of vegetation are found in the forest areas of the district. The main species of trees found in the forest are Vilayati khejri (Prosopis - juliflora) and Kumat27. Neem, Siras, Siamea, Cassia, Acacia Tortilis, Propepis, Juliflas, Par Kinsonia, Eucalyptus are also found in the forests. Only negligible percentage of the total reporting area for the land use in the district is covered under forests on account of arid climate.

25 Agriculture Contingency Plan, Dept. of Agriculture Cooperation & Farmers welfare, Govt. of India. 26 India State of Forest Report 2011, Forest Survey of India 27 District Census Handbook, Directorate of Census Operations, Rajasthan (2011)

101


252. As per Ground Water Resources Central Ground Water Board and Ground Water Department, Government of Rajasthan the total annual ground water resources and net annual ground water availability in the district is estimated at 420.8565mcm and 388.8043mcm respectively (March 2009). An area of 3321.80 sq.km in the district has saline ground water which is not suitable for both drinking and irrigation. In major parts of the district, it has been reported that fluoride content is in excess. Nitrate concentration is exceptionally high at Mandore and is excess in some parts of different blocks. 7 blocks out of 9 fall under “Over-exploited” category, 1 block under “Critical” and 1 under “Safe” (Table 46).

Tanka - A reliable system of drinking water harvesting in Jodhpur

As the district receives scanty rainfall and is among the most drought prone in the country, water scarcity is a major issue. Even

after boring as deep as 750 feet, there is no guarantee to discover water. In many cases, the water is brackish which can neither

be used for drinking nor for cultivation of crops. Farmers cannot build structures like earthen farm ponds to hold the monsoon

rains as the soils are sandy. Tankas or tanks, in such circumstances, are a reliable means for storing drinking water.

In Dungerpura village of Jodhpur district, farmers have received financial support to construct tankas from three sources; Jal

Bhagirathi Foundation (JBF), MLA Local Area Development Funds (MLADS), and Apna Khet Apna Kam (AKAK) under MGNREGA. 38

years old Gajraj is one among those who have received support under the MLADS. He constructed a covered underground tanka

to store runoff rainwater for drinking water. The tanka is constructed by digging a circular pit 12ft deep and 11ft wide and

plastering the sides and base to store 40,000 litres. He has received an amount of INR 40,000 for labour costs out of the total

amount of INR 1,48,000 and the remaining for material expenses. Gajraj was of the view that the village is ecologically and

economically disadvantaged. “For many years, we have been grappling with water crisis because of recurrent droughts. It was high

time to explore ways to conserve water. Constructing tankas helped us collect rainwater. The water stored can sustain my family

(8 members) for 8 months.”

In the past 3 years, this story has been replicated. There are increasing numbers of farmers who are constructing tankas by availing

subsidies and grants. There were 25 beneficiaries in the village under AKAK, 15 under MLADS and 23 under JBF. The amount

sanctioned under AKAK is INR 2,35,000 where the size of the tanka is 8ft by 8ft and the storage capacity is that of 20,000 litres.

Under JBF, there is subsidy of 30 percent of the total cost.

Gajraj highlighted the benefits of having a tanka outside his house.

• It is a safe drinking water source.

• Women at home no longer need to trudge miles to collect drinking water which saves time and drudgery. Earlier women had

to go twice a day to fetch water.

• Saves money as the cost of buying drinking water is INR 1000 per tanker.

102

Table 46. Ground Water Availability (March 2009)

Groundwater availability and

use

No. of blocks Net Annual GW

availability (mcm)


Critical 1

Semi-critical

Safe 1


f) Irrigation

253. The net irrigated area of the district is 383620 ha. The only source of irrigation is groundwater. The development of the groundwater is being done by dug wells and tube wells. As such, 99.15 percent net irrigated area is carried out through tube wells and few tanks constructed during the princely regime like Soorpura tank and Pichiyak (Jaswant Sagar) for irrigation purposes in the district. At present, the stage ground water development in the district is 208 percent indicating that the scope of development of groundwater is totally exhausted.28

Table 47. Source Wise Irrigated area in terms of Percentage Sl. No. Means of irrigation Irrigated area

Gross Area Net Area

1 Canals

a IGNP 0.05 0.09

b Chambal 0 0

c Gang 0 0

d Bhankara 0 0

e Others 0

2 Tanks 0 0

3 Wells

a Tube 99.26 99.15

b Others 0.52 0.67


5 Total Irrigated Area 6,27,674 3,83,620


g) Cropping pattern

254. The agricultural activities in the district are mainly dependent on rains. Hence, Kharif is the main cropping season of the district. Some of the main crops cultivated during rainy season are Bajra, Moong, Moth, Sesamum (Til), Jowar and Cotton to some extent. Rabi crop is mainly cultivated in Bilara, Bhopalgarh and Osian Tehsils only where wheat, Barley, Gram, Mustard, Raida, Tara Mira etc. are the main crops of Rabi in the district. The cultivable land and the area sown in the district are 1589684 ha and the net sown area is 1316003 ha (58.32%). Of which the net irrigated area is 383820 ha in the

28 Central Ground Water Board, Ministry of Water resources, Government of India.

103

district. The area and the production of the crops in both kharif and rabi season in the year 2014-2015 is as given in Table 48:

Table 48. Kharif and Rabi Crops (2014-15) Kharif crops (2014-15)


Cereals 4,91,314 5,29,643

Pulses 2,16,820 1,56,416

Food grains 7,08,134 6,86,059

Oilseeds 1,81,576 2,50,818

Others 3,01,182 2,52,826

Total 11,90,812 11,89,703



Cereals 68,051 1,31,563

Pulses 1,417 1,019

Food grains 69,468 1,32,582

Oilseeds 1,06,895 1,04,222

Others 2,07,585 4,69,232

Total 3,83,948 7,06,036


h) Crop Insurance

255. The area insured under Pradhan Mantri Fasal Bima Yojana (PMFBY) is 64,232.76 ha which enabled the farmers to tide over crop losses due to various calamities. Table 49 shows the status of crop insured by the farmers.

Table 49. Status of Crop Insurance Total area insured 41,230.5049

Total amount insured 15,76,761,448




i) Animal Husbandry

256. The livestock activities contribute to the economic development of the district. As per the 19th Livestock census of 2012, there are 3590264 total number of livestock which would include cattle, buffalo, sheep, goat, horse and ponies, donkeys and mules, camel and pigs and the total number of poultry is 65324. As seen in the table below, goats among the animals have been found in the largest number i.e. 1681913. Following is the number of animals and poultry in the district (Table 50).

Table 50: Livestock and Poultry Population (2012) Name of the animal Numbers

Cattle 8,48,343

Buffalo 3,05,238

104

Sheep 7,31,229

Goats 16,81,913

Horses and Ponnies 1,616


Camels 16,749

Pigs 822

Poultry 65,324


257. Cattle rearing is mainly for dairy production for own consumption and sale. The breeds of cows that are commonly reared in the district are Rathi, Hariyanis, Jersey and Holstein Friesian and buffaloes of Murrah and desi breeds are found. Goats and sheep are mainly reared for production of wool and meat. As given in Table 50, poultry population is quite high which is reared for eggs and meat. Some farmers also rear pigs for sale of meat.

j) Infrastructure

258. In the district of Ajmer, the roads expand up to 3,475.66 km, with the railways covering 1,905 km. There are 83 rural banks and 221 commercial banks. The detail of infrastructure in Jodhpur can be seen in Table 51.

Table 51: Ajmer at a Glance (2015) Transport

Classification Distance (in Kms)


State Highways 643




Communication

Classification

Post Offices 402

STD Public Call 824


Unani Hospitals 9


Banking

Classification


Rural Banks 83

Co-Operative bank 83



259. The major exportable items are handicrafts items, flexible packing material, guar gum powder, refined guar splits, guar meal and churi etc. While the items which are imported in the district are consumption goods, medicines, petrol, diesel, machinery, iron and steel, timber, kerosene, edible oils, general merchandise goods etc.

105

260. The main trading centre in the district is Jodhpur city. It has two Dhan Mandies, each situated near Ghanta Ghar and in Mahamandir areas respectively. The principal commodities brought to the Mahamandir area are from the Panchayat Samiti Mandore, Bilara, Pipar, Phalodi, Jalor, Bhinmal (Jalor district) Pokaran (Jaisalmer district), Balotra (Barmer district) and Merta (Nagaur district). Besides this, betal nut is being brought from Mumbai and Assam, Copra from Tamil Nadu and Kerala, black peeper from Kerala and various other commodities from other parts of the country.

Table 52: Krishi Upaz Mandies (KUM) and the main commodities Sl.No KUM Name Arrival of major crops

1 Jodhpur (F & V) Potato, Onion

2 Jodhpur (Grain) Cumin, Mustard, Chilli, green Gram, Moth, guar

3 Bilara Sanuf, Cumin, Mustard, Wheat, Cotton, Green Gram, Guar

4 Falodi Mustard, Cumin, Isabgol, groundnut, Cotton, Sonamukhi, Guar

5 Pipar city Cumin, Mustard, Gram, Green gram, Moth, Cotton


l) Industries

261. Jodhpur district is well connected by rail and air which provides a basic infrastructure. Industrial units such as Aleobax, Woollen mill, guar gum, cotton, synthetic fabric etc. are functioning in the district. In the engineering field, machines, machine parts, pumps, trolley, agricultural implements etc. are also manufactured. Apart from these there are many industries based on agriculture. Since the district is rich in minerals, there are mineral based industries, cotton textile industries and wood & wood product industries. From large scale industries, guar gum powder is a major exportable item and from medium scale enterprises, mustard oil is major exportable item. The details on industries of the district is presented in Table 53.

Table 53: Number of Industries Classification Numbers




Estimated average number of daily workers employed in Micro & Small 107151





262. The district has rich minerals which have contributed towards the development of Jodhpur district. There is a long belt of 160 kms trending from Pali district through Bizara in Jodhpur district to Naguar district. As such, many mining factories have come up over the years which have absorbed many of the farmers residing in and around the industrial area. Census 2011 data shows that the economy of the district is mainly dependent on agriculture as 56 percent workers are engaged either in cultivators

106

or agricultural labourers. However, a large portion of the population which is 41.1 percent is in other workers category because of the presence of factories.

Table 54: Production of Minerals (2015-2016) Source: Mineral Statistics Report (2015-2016), Department of Mines and Geology, Government of Rajasthan

Mineral Leases Area Production Sale Value Revenue Employment

(ha) (Tons) (Rs.) (Rs.) (Nos.)

Limestone (Burning) 88 1340.58 2036792 203679200 167709000 650

Rhyolite 183 183 1394342 104575650 44507000 705

Granite 274 35.1 6208 4966400 7217000 45

Sandstone 39 38.99 8837215 3297612050 763044660 23485

Masonary

Stone

146 146 2289582 303091150 127767728 9820

Marble 7 27 3385 10155000 3010000 146

Mitti 7 7 48900 2200500 1420160 610

Murram/

Gravel

0 0 180400 22550000 820850 1511

Kankar-Bajri 4 0 1626733 102351180 127680340 2460

Inc. from Govt.

Deptt.

0 0 0 0 78430660 0

Misc. Income 0 0 0 0 43023602 0

748 1777.67 16423557 4051181130 1364631000 39432

107

ALWAR

Figure 33: District Alwar (Source: District Census Handbook)

263. Alwar is located in the north-east part of the state, having a geographical area of 3,42,239 sq.kms.

It lies between 274' and 284' north Latitudes and 767' and 7713' east Longitude. The district is bounded on the north and northeast by Gurgaon (Haryana) and Bharatpur district and on the northwest by Mahendragarh district of Haryana, on the south by Sawai Madhopur and south west by Jaipur. The district is located between the Sutlej, Yamuna divide and the central part of the district is covered by Aravalli hills. The hills of northeast and southwest has marked difference as south-western hills have fairly dense vegetation as compared to north eastern which has some barren and rocky hills. 264. The district is divided into 14 blocks and consists 82.2 percent rural and 17.8 percent urban population. The study team visited four villages, namely Piproli and Meokheda in Ramgarh block and Khedla and Duskheda villages in Lakshmangarh block.

108

a) Climate

265. The climate of Alwar district is hot in summer and receives an average of annual rainfall around 580 mm; the monsoon season is of short duration which continues from July to mid-September. During winter, the temperature varies within the range of 23° C to 8°C which is favourable for crops like wheat, barley, mustard and gram.

b) Soil

266. The soil found in this district is of brown loamy soil which is suitable for cultivating rapeseed, mustard and wheat. The major soils found are medium brown loamy which is of 29.61%, deep, brown loamy soil is 36.1% and deep dark brown sandy is 11.68% of the total type of soils found in the district29.

c) Land utilization

267. Due to the interplay of physical and human factors like topography, soil and climate as well as the density of population and occupation of the area, there are differences in land utilization. According to Agriculture Statistics of Rajasthan (2014-2015), the reporting area for land utilization is 783281 ha and the forest area constitutes of 84899 ha. While the total fallow land is 43275 ha, the total area not available for cultivation is 136580 ha and other uncultivated land like grazing land, tree crops and grooves and wasteland are 148097 ha.

d) Forest

268. The forest in Alwar is dry deciduous forest and there are forest ranges one each at Alwar, Rajgarh and Sariska. The forest is famous for the wildlife as the topography presents a picturesque setting with several places of historical interest. The hill slopes are covered with Dhok, White salar. The district forest area is 1205 sq.km30.


269. As per Ground Water Resources Central Ground Water Board and Ground Water Department, Government of Rajasthan the total annual ground water resources and net annual ground water availability in the district is estimated at 869.51 mcm and 794.82 mcm respectively (March 2009). In Behror, Kotkasim and Reni blocks, the stage of ground water development has exceeded 200 percent. Neemrana, Ramgarh and Kathuma blocks have excess content of fluoride and the shallow ground water is alkaline in nature.

Table 55: Status of Groundwater availability Ground Water Resources (March 2009)

Groundwater availability and use No. of

blocks

Net Annual GW availability

(mcm)


Critical

Semi-critical

Safe

Source: Agriculture Contingency Plan, Dept. of Agriculture Cooperation & Farmers welfare, Govt. of India.

29 Agriculture Contingency Plan, Dept. of Agriculture Cooperation & Farmers welfare, Govt. of India. 30 India State of Forest Report 2011, Forest Survey of India

109

f) Irrigation

270. The net irrigated area in the district is 4,58,682 ha. The groundwater availability is estimated to be 795 mcm. The draft for all uses is reported to be 1324 mcm and of which 1232 mcm is used for irrigation and 92 mcm is used for domestic and industrial needs31. Tube wells are the primary source of irrigation in the rural area. As given in the table below, 90.04% area is irrigated using water from tube wells. The area irrigation by different means of irrigation in 2014-15 in the district is presented in Table 56.

Table 56: Source Wise Irrigated Area in Terms of Percentage


Gross Area Net Area

1. Canals

a. IGNP 0 0

b. Chambal 0 0

c. Gang 0 0

d. Bhankara 0 0

e. Others 0.05 0.05

2. Tanks 0 0

3. Wells

a. Tube 90.3 90.04

b. Others 9.66 9.91

4. Other Sources 0 0

5. Total Irrigated Area 501764 458682


g) Cropping pattern

271. There are two main cropping seasons in Alwar, Kharif and Rabi season. Farmers who have access to water also cultivate during Zaid. The cultivable land and the area sown in the district are 855160 ha and the net sown area is 4,96,663 ha. Of which the net irrigated area is 458682 ha in the district. The main crops grown in the district are wheat, jowar, mustard, gram, bajra, barley, guar. The area and the production of the crops in both kharif and rabi season in the year 2014-2015 is as given in Table 57.

Table 57: Kharif and Rabi crops (2014-2015) Kharif crops (2014-2015)


Cereals 2,82,069 5,37,796

Pulses 1,499 1,800

Foodgrains 2,83,568 5,39,596

Oilseeds 3,625 3,244

Others 85,142 1,10,661

Total 3,71,335 6,53,501

31 Central Ground Water Board, Ministry of Water Resources, Govt. of India

110


Cereals 2,28,672 7,88,741

Pulses 12,627 12,681

Foodgrains 2,41,299 8,01,152

Oilseeds 2,30,891 3,18,559

Others 20,388 84,374

Total 4,92,578 12,04,085


h) Crop Insurance

272. In Alwar district, the area insured under Pradhan Mantri Fasal Bima Yojana (PMFBY) is 64,232.76 ha which enabled the farmers to tide over crop losses due to various calamities. Table 58 presents the status of crop insured by the farmers.

Table 58: Status of Crop Insurance Total area insured 64,232.7574

Total amount insured 24,11,925,370




i) Animal Husbandry

273. The livestock sector in Alwar district is a major economic activity of the rural people. As per the 19th Livestock census of 2012, there are 17,23,439 total number of livestock which includes cattle, buffalo, sheep, goat, horse and ponies, donkeys and mules, camel and pigs and the total number of poultry is 1,68,713 (Table 59).

Table 59: Livestock and Poultry Population in Alwar District (2012) Name of the animal Numbers

Cattle 206865

Buffalo 1060734

Sheep 52166

Goats 379776

Horses and Ponies 952

Mules and donkeys 1876

Camels 5928

Pigs 15142

Poultry 168713


274. Cattle rearing is mainly for milk production for own consumption and sale. The breeds of cows that are commonly reared in the district are Rathi, Hariyanis, Jerseyi and Holstein and buffaloes of Murrah and desi breed are found. Goats and sheep are mainly reared for production of wool and meat.

111

As given in the above table poultry population is quite high which is reared for eggs and meat. Some farmers also rear pigs for sale of meat.

j) Infrastructure

275. Adequate infrastructural facilities lead to sustainable economic growth. Sound infrastructure attracts better investment opportunities. The five important aspects of infrastructure entail transport, communication, public health, banking and education. The total length of different types of roads in the district is 1,126.5 kms and the length of the rail line is 205 kms. The district is directly linked to Jaipur and Delhi and to Mathura by broad gauge of rail line. There are 485 post offices and 98 telephone exchange centres.

Table 60: District at a glance (2015) Transport

Classification Distance (in Kms)

National Highway 151.1

State Highways 662.5



Railways


Communication

Post Offices 485

PCO (Local & CCB) 95

Telephone Exchange Center 98

STD Public Call 473

Internet Connection 4

Broadband Connection 6768

ISDN Connection 216

Public Health



Unani Hospitals 2



Dispensaries 5


Upgraded Sub centres 75


Banking


Rural Bank Products 69

Co-Operative bank products 16

PLDB Branches 7

Education


112


Colleges 76

Engineering College 8

Poly technique 9

ITI 103

Technical University No Info



276. The economy of the district primarily revolves around agriculture. The main commodities traded in the district are oilseeds, wheat, gram, cotton, onion etc.

Table 61: Number of Krishi Upaz Mandies and name of the main commodities KUM Name Class Arrival of major crops

Alwar SA Mustard, Wheat, Bajra, Arhar, Barley, Gram, Onion

Khairthal SA Mustard, Wheat, Bajra, Barley, Guar, Cotton

Kherli A Mustard, Wheat, Bajra, Barley

Barodamev B Mustard, Wheat, Bajra, Cotton


l) Industries

277. The district has wide range of industries established. The products that are manufactured includes shaving blade, hand tools, aluminium extruded product, surgical blade, synthetic blended fabrics, empty hard gelatine capsules, leather shoes, subscriber carrier system, tyre-tube, picture tube, Chemicals, sanitary items, crockery, suiting, slate tile, different chemicals like calcium cyanide, alkalis salt, moped, PVC cable sanitary ware, readymade garments etc. In the recent years the industrial activities have increased that many new industrial hubs have come up in the district. Currently, there are 25 industrial areas developed by RIICO in the district.32 Moreover, many international companies have been established besides national firms in the district. Biwadi, Shahajahanpur, Behror has evolved as the new industrial area while SEZ in Neemrana has proved as an industrial catalyst. Table 62 provides an overview of the industrial sector in the district. Table 62: Classification of Industries


Total Industrial units 25,465



Estimated average number of daily workers employed in Micro & Small 1,12,554

Employment in Medium & Large Industries 8,100


Source: District Census Handbook, Directorate of Census Operations, Rajasthan (2011)

32 Official Site of Alwar, Government of Rajasthan

113


Alwar district is rich in minerals. The best rocks in the region are granites, felspar chists, calgeneisses

marble and quartzite which are found along the Ajmer Nasirabad pass. In Beawar area, Gneiss and

granite are predominate and granite alternates with limestone, mica chists and Felspathetic

quartzite, coarse grained marble, lime towards Ajmer and building stone is seen in the South West

plains of Ajmer. The major and minor mineral production in the district in the year 2015-2016 are

presented in Table 63.

Table 63: Production of Major Minerals (2015-2016) Production of Major Minerals (2015-2016)

S. No. Mineral Leases Area Production Sale Value Revenue Employment

(in Hector) (Tons) (Rs.) (Rs.) (Nos.)

1 Iron ore 4 83.807 1,57,800 4,48,15,200 47,34,000 150

2 Limestone 2 581.15 42,84,872 1,49,97,05,200 3,34,365,000 320

TOTAL 6 664.96 44,42,672 1,54,45,20,400 3,39,099,000 470

Production of Major Minerals (2015-2016)

S.No. Mineral Leases Area Production Sale Value Revenue Employment

(in hectare) (Tons) (Rs.) (Rs.) (Nos.)

1 Marble 73 131 19,50,170 11,40,983,300 1,75,797,000 550

2 Masonry Stone 158 160 62,77,835 17,05,453,080 1,21,082,184 1200

3 Granite 1 4 12,566 87,96,200 1,267,000 10

4 Patti Katla 1 5 0 0 1,50,000 0

5 Chert 1 1 0 0 77,000 0

6 Brick Earth 0 0 12,04,000 14,44,800,000 3,78,34,250 1360

7 Kankar-Bajri 1 1,096 1,17,960 41,286,000 1,00,42,824 445

8 Felspar/Quartz 1 4 0 0 74,000 0

9 Silica Sand 2 8 19,220 67,27,290 16,99,000 5

10 Slate Stone 13 32 35 24,500 3,92,000 1

11 Soapstone 1 20 1,528 3,82,192 1,80,000 6

12 Inc. from Govt. Deptt. 0 0 0 0 4,45,64,000 0

13 Misc. Income 0 0 0 0 7,70,73,742 0

Total 252 1,463 95,83,316 43,48,452,563 47,02,33,000 3,577


114

278. The economy of Alwar district is mainly dependent on agriculture which is either cultivators or agricultural labourers. 52.6 percent of the workers are cultivators, 12.7 percent are agricultural labourers, 2 percent are workers in household industry (census 2011). As have witnessed in the field, the literacy rate in Alwar according to census 2011 is 70.7 percent which is higher than the state literacy rate (66.1%) yet only 32.7 percent of the population falls under other-workers category.

115

8) SAMPLE SURVEY

a) Profile of sampled villages

i) Demographic profile of the sampled households

279. This section details the profile of the households interviewed for the study across four districts. Based on household and individual data, the social and economic status of the respondents are highlighted here. Educational and occupational profile and their access to security schemes of the respondent are also covered. 280. The NRMC study team visited four districts viz. Ajmer, Udaipur, Jodhpur and Alwar. As per Census 2011, Table 64 shows the population size of the sampled villages.

Table 64: Population size of the sampled villages

District Block Village Total

Population Total Male Population

Total Female Population

Ajmer Masuda

Peeplaj 1863 1039 824

Amratpura 680 330 350

Bhawanipura 532 267 265

Rani Sagar 687 351 336

Deogarh 616 324 292

Total 4378 2311 2067

Udaipur

Kotra Meri 1437 708 729

Budhiya 2759 1375 1384

Girwa Jawla 2196 1128 1068

Mor Dungri 1767 927 840

Total 8159 4138 4021

Jodhpur Balesar

Tolesar Charnan 1260 654 606

Judiya 3474 1825 1649

Dungarpur 327 180 147

Shergarh Ratanpura 939 480 459

Total 6000 3139 2861

Alwar

Laxmangarh Khedla 1175 617 558

Dusrahera 1749 897 852

Ramgarh Peeproli 3356 1741 1615

Meo kheda 910 451 459

Total 7190 3706 3484

Source: Census 2011

281. Table 65 shows that there is direct correlation between the income class and family size; the family size increases as the income size increases. In all the districts, the average number of family size is highest amongst the upper-class population in the income scale33. The average family size in Alwar is highest as the Muslim community has family size as large as 29 members in a family. 282. The sex ratio as well, is highest in Alwar district and lowest in Jodhpur. The population ratio in Alwar is 968 females per 1000 of males. Jodhpur has the lowest rate of sex ratio and the figure shows a number of 938 of females to that of 1000 of males.

33 Income class: 1: <=30% of population in income scale: Poor; 2: 30% to <=50%: Lower middle class; 3: 50% to <=90%: Middle class; 4: 90% to 100%: Upper class

116

Table 65: District-wise average number of persons per 100 farmer households as adults and children by sex in different income classes, by social group and religion

Income class (Rs)*

Average no. per 100 households of Sex Ratio

Adults Children All

Male Female

(1) (4) (5) (6) (7) (8)

Ajmer

Marginal 2 1 2 5 902

Small 1 1 2 5 1048

Medium 2 2 3 6 994

Large 3 3 3 9 881

ALL 2 2 2 6 959

Udaipur

Marginal 1 1 3 6 1036

Small 1 1 3 6 1000

Medium 2 2 3 6 906

Large 3 2 3 9 836

ALL 2 2 3 6 940

Jodhpur

Marginal 1 1 2 5 1011

Small 1 1 3 6 1065

Medium 2 2 3 7 860

Large 2 2 2 7 926

ALL 2 2 3 6 938

Alwar


Small 2 2 3 6 827

Medium 2 2 4 8 1021

Large 3 3 5 10 982

ALL 2 2 3 7 968

All


Small 1 1 3 6 989

Medium 2 2 3 7 942

Large 3 3 3 9 942

All 2 2 3 6 951

Source: Sample Survey

ii) Social groups and Religion

283. Given the objective of the project, the study was carried out keeping in mind the poor and the marginalised communities. Thus, there was a high concentration of OBC group in Ajmer (74.3%), ST

117

group in Udaipur (95.2%), OBC group in Jodhpur (66.7%) and OBC group and ST group with 53.4 percent and 36.1 percent respectively in Alwar district. 284. In all four districts there is higher percentage of Hindu population: 87.2 percent in Ajmer, 97.1 percent in Udaipur, 93.9 percent in Jodhpur and 69.9 percent in Alwar. There is high proportion of Muslims in Alwar (29.8%). The major proportion of the Hindu households falls under Marginal category in all the districts. The report at a later stage delves into understanding some of the aspects through the lens of social groups and religion.

Table 66: Percentage distribution of household by religion and Social group by size class of land

Social group Religion

Size class of land General SC ST OBC ALL HINDU MUSLIM CHRISTIAN OTHERS ALL

AJMER

Marginal 1.4 14.7 0.5 47.2 63.8 52.8 11.0 0.0 0.0 63.8

Small 2.3 3.2 0.5 19.3 25.2 23.4 1.8 0.0 0.0 25.2

Medium 0.9 0.5 0.0 6.0 7.3 7.3 0.0 0.0 0.0 7.3

Large 1.4 0.0 0.5 1.8 3.7 3.7 0.0 0.0 0.0 3.7

All 6.0 18.3 1.4 74.3 100.0 87.2 12.8 0.0 0.0 100.0

UDAIPUR

Marginal 0.5 3.4 92.8 0.5 97.1 97.1 0.0 0.0 0.0 97.1

Small 0.0 0.5 2.4 0.0 2.9 2.9 0.0 0.0 0.0 2.9

Medium 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Large 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

All 0.5 3.8 95.2 0.5 100.0 100.0 0.0 0.0 0.0 100.0

JODHPUR

Marginal 3.5 4.4 9.2 29.8 46.9 43.4 3.5 0.0 0.0 46.9

Small 6.1 2.6 0.4 21.5 30.7 28.5 2.2 0.0 0.0 30.7

Medium 3.5 0.9 1.8 12.7 18.9 18.4 0.4 0.0 0.0 18.9

Large 0.9 0.0 0.0 2.6 3.5 3.5 0.0 0.0 0.0 3.5

All 14.0 7.9 11.4 66.7 100.0 93.9 6.1 0.0 0.0 100.0

ALWAR

Marginal 3.8 34.6 3.8 43.3 85.6 61.1 23.6 0.0 1.0 85.6

Small 1.9 1.4 0.0 6.3 9.6 6.3 3.4 0.0 0.0 9.6

Medium 1.0 0.0 0.0 3.4 4.3 1.4 2.9 0.0 0.0 4.3

Large 0.0 0.0 0.0 0.5 0.5 0.5 0.0 0.0 0.0 0.5

All 6.7 36.1 3.8 53.4 100.0 69.2 29.8 0.0 1.0 100.0

All Districts

Marginal 1.6 11.0 41.8 24.1 78.5 71.5 6.9 0.0 0.1 78.5

Small 3.3 2.4 0.4 15.5 21.6 19.3 2.3 0.0 0.0 21.6

Medium 2.2 0.5 0.9 8.1 11.5 10.0 1.5 0.0 0.0 11.5

Large 0.6 0.0 0.1 1.6 2.3 2.3 0.0 0.0 0.0 2.3

All 7.0 16.3 27.3 49.4 100.0 87.7 12.0 0.0 0.2 100.0


118

iii) Possession of Ration card, Aadhar card and MGNREGA card

285. The eligible beneficiaries are entitled to subsidised food grains such as wheat and rice. Farmers are also receiving other commodities such sugar, kerosene, and fortified atta at the discretion of the state. Table 67 indicates the number of beneficiaries of different categories across social group. 286. Majority population has ration cards. Of which, number of beneficiaries holding APL constitutes larger proportion of the households across all districts. Ajmer district has the largest proportion of households holding APL card (81.2%), followed by 71.6 percent in Alwar, 68 percent in Jodhpur and 38.9 percent in Udaipur. Udaipur district was with the largest proportion of BPL cards holding households (51.4%) households, 28.5 percent in Jodhpur, 22.6 percent in Alwar and 16.1 percent in Ajmer. Antyodaya card holders formed less than 5 percent of rural households across all four districts. 287. In Ajmer, 61.5 percent of the households of OBC group held APL card, however, 47.6 percent of the households of ST group in Udaipur have BPL card. In Jodhpur, 47.4 percent of the households of OBC group have APL card and only 16.2 percent of OBC group have BPL card. 39.4 percent of OBC group and 23.6 percent of SC group of the households hold APL card in Alwar and very few hold BPL card across all social groups. 288. Almost all the population have Aadhar card in all the four districts, in fact, Alwar, Udaipur and Jodhpur have 100 percent of households holding Aadhar card. Though farmers have made Aadhar card, quite a few have mismatched names for which it stands invalid.

289. Above 80 percent of the households also have MGNREGA job card across all the four districts. It was understood from the farmers that there has been no public work in the villages as there is no common land in the villages for development activities and the farmers are unaware of Apna Khet Apna Kam programme under MGNREGA which they could have availed. Moreover, they prefer working in mining rather than MGNREGA as they would earn INR 250-450 per day as compared to INR 70 (average) from MGNREGA.

Hurdles in Availing PDS

From the field discussions in Jodhpur district, it was understood that

the quality of service at the ration shop is below par. Farmers conveyed

their dissatisfaction and exploitation over receiving ration. They stated

that there is demand-supply gap in food grains supply at the village-

level; while in Tolesar village, they receive only 70Q when the demand

was 121Q and in Judiya village, the demand was 158Q and have

received only 110Q. There are many irregularities and the

disappointing fact is that they receive ration only for six months in a

year. People also find difficulty in receiving their rightful entitlements

as the dealers prioritize the distribution of food grains based on

political affiliations.

The introduction of Aadhar biometric authentication for distribution of

food grains has raised several issues. There has been seeding error as

the farmers fingerprint were not authenticated because of poor

internet connectivity and mismatch of names in aadhar card and ration

card. Farmers in Dungerpura also stated that the dealer practices

corruption; the ration dealer would make the farmer give their

fingerprint and tell them that it failed and later they would receive SMS

that the beneficiary has collected the food grain.

119

Table 67: Percentage distribution of farm household holding different type of Ration Card, Aadhar Card, and MGNREGA by social group

Type of ration card

Social group

General Scheduled

Caste Schedule

Tribe OBC ALL

AJMER

Antyodaya 0.0 0.5 0.0 1.4 1.8

In BPL 1.4 3.2 0.5 11.0 16.1

No Card 0.0 0.5 0.0 0.5 0.9

Other/APL 4.6 14.2 0.9 61.5 81.2

Total Ration card 6.0 18.3 1.4 74.3 100.0

Aadhar 6.0 18.3 1.4 73.9 99.5

MGNREGA 3.7 17.0 1.4 68.8 90.8

UDAIPUR

Antyodaya 0.0 0.0 5.8 0.0 5.8

BPL 0.5 2.9 47.6 0.5 51.4

No Card 0.0 0.0 3.8 0.0 3.8

Other 0.0 1.0 38.0 0.0 38.9


Aadhar 0.5 3.8 95.2 0.5 100.0

MGNREGA 0.5 3.8 79.3 0.5 84.1

JODHPUR

Antyodaya 0.0 0.0 0.0 0.0 0.0

BPL 3.1 2.6 6.6 16.2 28.5

No Card 0.0 0.0 0.4 3.1 3.5

Other 11.0 5.3 4.4 47.4 68.0


Aadhar 14.0 7.9 11.4 66.7 100.0

MGNREGA 8.8 7.9 10.1 61.0 87.7

ALWAR

Antyodaya 0.0 1.4 0.0 2.4 3.8

BPL 0.5 10.1 1.4 10.6 22.6

No Card 0.0 1.0 0.0 1.0 1.9

Other 6.3 23.6 2.4 39.4 71.6


Aadhar 6.7 36.1 3.8 53.4 100.0

MGNREGA 5.8 32.7 3.8 33.7 76.0

ALL DISTRICT

Antyodaya 0.0 0.5 1.5 1.0 2.9

In BPL 1.4 4.7 14.0 9.6 29.7

No Card 0.0 0.4 1.1 1.2 2.5

Other/APL 5.5 11.0 11.4 37.1 64.9


Aadhar 6.8 16.5 28.0 48.6 99.9

MGNREGA 4.7 15.4 23.7 41.0 84.7

120

iv) Ownership and type of house

290. Table 68 shows that the major proportion of households lived in their “owned” houses. In Alwar,

100 percent of the households have owned houses and so is the case in Jodhpur (99.6%), Ajmer (98.6%)

and in Udaipur (98.1%). The households residing in “rented” house is negligible in the rural areas across

all four districts.

291. Classification of households by the condition of the structure of houses shows that Ajmer (73.4%) and Alwar (70.7%) have larger proportion of the households living in “pucca” houses. In Jodhpur, 33.8 percent of the households lived in pucca houses, with Udaipur having the lowest proportion (3.4%). While Jodhpur (39.9%) had the highest proportion of rural households living in “semi-pucca” houses, Udaipur (75%) had the highest proportion of rural households living in “kutcha” houses.

292. The existing social groups have wide disparities across all the districts. While OBC group had the highest proportion living in “pucca” houses in Ajmer (54.1%), major proportion of ST group in Udaipur live in “kutcha” houses (71.2%).

Table 68: Percentage distribution Ownership and type of housing by social group and religion

Social group/ Religion

Owned Rented

Kutcha Pucca Semi-Pucca


Ajmer

General 0.5 4.6 0.9 0.0 0.0 0.0

SC 1.4 14.2 2.8 0.0 0.0 0.0

ST 0.0 0.5 0.9 0.0 0.0 0.0

OBC 2.8 54.1 16.1 0.0 0.0 1.4

ALL 4.6 73.4 20.6 0.0 0.0 1.4

Udaipur

General 0.5 0.0 0.0 0.0 0.0 0.0

SC 3.4 0.0 0.5 0.0 0.0 0.0

ST 71.2 3.4 18.8 0.5 1.4 0.0

OBC 0.0 0.0 0.5 0.0 0.0 0.0

ALL 75.0 3.4 19.7 0.5 1.4 0.0

Jodhpur

General 1.8 6.6 5.7 0.0 0.0 0.0

SC 0.9 3.9 3.1 0.0 0.0 0.0

ST 1.3 6.6 3.5 0.0 0.0 0.0

OBC 21.9 16.7 27.6 0.0 0.4 0.0

ALL 25.9 33.8 39.9 0.0 0.4 0.0

Alwar

General 0.0 5.3 1.4 0.0 0.0 0.0

SC 3.4 23.6 9.1 0.0 0.0 0.0

ST 0.0 2.9 1.0 0.0 0.0 0.0

OBC 1.0 38.9 13.5 0.0 0.0 0.0

ALL 4.3 70.7 25.0 0.0 0.0 0.0

General 1.1 5.8 3.6 0.0 0.0 0.0

All Districts

121


Owned Rented



SC 2.5 17.1 6.1 0.0 0.0 0.0

ST 60.1 3.7 16.3 0.4 1.2 0.0

OBC 9.1 36.7 19.5 0.0 0.1 0.5

ALL 27.1 45.4 26.5 0.1 0.5 0.4


v) Primary source of cooking fuel, lighting and drinking water

293. As many as 97 percent of rural homes across the four sampled districts still use traditional fuel such as firewood, and dung cakes for cooking. Only 7.8 percent households in rural areas across the five villages surveyed in Ajmer used LPG as their primary source for cooking; none of the households in Udaipur use LPG for cooking. It was stated that the major factor hindering LPG use is the time taken to get connection and many households cannot afford it. Also, many are unaware of the clean cooking energy which hampers the demand. Every household reported using dung cake in combination with firewood unaware of the fact that the fumes from cooking causes air pollution. 294. Except for Udaipur district, the rural households of the other districts use electricity as the

primary energy source for lighting; it is an encouraging aspect that use of Kerosene is less for both

cooking and lighting. In Alwar, 92.3 percent of households use electricity as their primary source of

lighting, followed by Ajmer at 91.7 percent and Jodhpur at 80.3 percent. In Udaipur, use of electricity is

less. As seen in the Table 69, the proportion of using Kerosene is significantly high as compared to other

districts. The ST population is predominantly high in Udaipur; hence 46.2 percent of the ST population

use electricity as the principal source of lighting.

Table 69: Percentage distribution of household using different methods of cooking and lighting by

social group and religion

Social group

Cooking Lighting

firewood Kerosene Coal Gas Others Kerosene Other

oil Gas Electricity Solar None

AJMER

General 3.2 0 0 2.8 0 0 0 0 6 0 0

SC 16.5 0 0 1.8 0 1.4 0 0 17 0 0

ST 1.4 0 0 0 0 0 0 0 1.4 0 0

OBC 70.2 0 0 3.2 0.9 6 0.5 0.5 67.4 0 0

ALL 91.3 0 0 7.8 0.9 7.3 0.5 0.5 91.7 0 0

UDAIPUR

General 0.5 0 0 0 0 0.5 0 0 0 0 0

SC 3.4 0 0 0 0.5 3.8 0 0 0 0 0

ST 95.2 0 0 0 0 46.2 1 0 44.7 2.4 1

OBC 0.5 0 0 0 0 0.5 0 0 0 0 0

ALL 99.5 0 0 0 0.5 51 1 0 44.7 2.4 1

JODHPUR

General 13.6 0 0 0.4 0 0.4 0 0 13.6 0 0

SC 7.9 0 0 0 0 2.6 0 0 3.9 1.3 0

122

Social group

Cooking Lighting

firewood Kerosene Coal Gas Others Kerosene Other

oil Gas Electricity Solar None

ST 11 0.4 0 0 0 1.8 0 0 9.6 0 0

OBC 64.4 0 0 1.8 0.9 11.8 0.4 0 53.1 1.3 0

ALL 96.9 0.4 0 2.2 0.9 16.7 0.4 0 80.3 2.6 0

ALWAR

General 6.7 0 0 0 0 0 0 0 6.7 0 0

SC 35.1 0 0 1 0 2.9 1.4 0 31.3 0 0.5

ST 3.8 0 0 0 0 0.5 0 0 3.4 0 0

OBC 53.3 1.9 0 0 0 2.4 0 0 51 0 0

ALL 99 1.9 0 1 0 5.8 1.4 0 92.3 0 0.5

All Districts

General 9.5 0.0 0.0 0.8 0.0 0.2 0.0 0.0 10.1 0.0 0.0

SC 24.6 0.0 0.0 1.0 0.0 2.5 0.7 0.0 22.0 0.2 0.3

ST 81.6 0.0 0.0 0.0 0.0 39.1 0.8 0.0 38.9 2.0 0.8

OBC 63.6 0.5 0.0 1.9 0.7 7.1 0.3 0.2 57.9 0.5 0.0

ALL 96.6 0.3 0.0 2.8 0.3 20.0 0.8 0.1 77.5 1.3 0.4


295. Figure 34 presents a snapshot of the major sources of drinking water available. Among the nine classified sources of water, tanker, unprotected well, and tube well constitute a major proportion across the four districts. 296. In Ajmer and Jodhpur, sizeable proportion of the households is dependent on Tanker at 53 percent and 78 percent respectively. Scarcity of drinking water was observed to be an issue in all the districts. While the groundwater has fluoride content and is saline which is unsuitable for drinking purposes, common tube-wells are not conveniently placed to cater to all hamlets. The community is mostly dependent on the stored rainwater in the tanks for their supply of drinking water.

297. A substantial decrease is seen in use of tube well as a major source of drinking in Ajmer, Udaipur and Jodhpur, indicating fall in ground water table. However, a considerable proportion (79%) of the households in Alwar reported use of tube well as the primary source of drinking water as the water level is high.

i) Literacy and Education

298. Table 6 depicts that the male population has higher literacy than female across all social groups and in all the districts. The literacy rate of male population is highest in Udaipur in general (100%) and OBC (100%) category whereas maximum number of people from Ajmer are attaining higher education. While the female dropout rates are high across all four districts, the trend seems to be least in Alwar, representing better status of women there. 299. The male, female literacy ratio in Alwar is the highest with 89.1 percent to 75.7 percent. While all the men in Udaipur are literate, only half (50%) of the female population is literate with the highest

123

disproportion amongst all the four districts. There is a major drop in the secondary school enrolment among all the four districts

Figure 34. Major Source of Drinking Water

Ajmer Udaipur

Jodhpur Alwar


300. The ratio of enrolment in the higher secondary and above is most constant across all social groups in Alwar depicting more equal opportunities for people of all castes while a bigger gap can be seen among the other districts.

Piped Water8%

Tubewell6%

River/ canal/ stream/ lake/

pond8%

Tanker78%

Tubewell6%

Handpump26%

Protected Well20%

Unprotected Well48%

Piped 17%

Tubewell6%

Handpump24%

Tanker53%

Piped11%

Tubewell79%

Handpump6%

Unprotected Well4%

124

Table 70: District wise Male-Female percentage of educational attainment by sex across social group and religion

Social Group Literacy Primary and above Secondary and above Higher secondary and above Higher studies

Male Female Male Female Male Female Male Female Male Female

AJMER

General 87.1 67.7 71 45.2 54.8 22.6 32.3 12.9 22.6 6.5

SC 93.5 57.7 73.1 31.7 35.5 17.3 19.4 5.8 7.5 2.9

ST 81.8 60 63.6 30 45.5 20 18.2 20 9.1 20

OBC 88 62.5 66.8 30.6 31.5 10.5 17.1 5.7 4.9 1.8

ALL 88.8 61.8 68.1 31.6 33.8 12.7 18.3 6.4 6.4 2.6

UDAIPUR

General 100 50 0 0 0 0 0 0 0 0

SC 61.9 45 57.1 35 28.6 25 19 10 4.8 0

ST 73.7 56.1 43.5 26.3 15.4 10 6.9 3.9 2.4 0.8

OBC 100 33.3 66.7 0 0 0 0 0 0 0

ALL 73.4 55.5 44.1 26.4 15.7 10.5 7.3 4.1 2.4 0.8

JODHPUR

General 76.3 53.8 66.7 41.3 30.1 11.3 12.9 3.8 5.4 3.8

SC 75.5 56.9 52.8 36.2 13.2 10.3 3.8 3.4 0 0

ST 85.1 60 51.4 18.3 14.9 0 4.1 0 0 0

OBC 78.9 55.5 53.6 26.1 18.9 5.1 7.4 1.9 3 0.3

ALL 79 55.8 55.2 28.4 19.6 5.9 7.5 2.1 2.7 0.7

ALWAR

General 89.1 75.7 76.1 48.6 45.7 18.9 32.6 16.2 17.4 2.7

SC 87.2 67 71.8 45.8 41.5 22 24.8 14.1 15 5.3

ST 80.8 52.2 69.2 39.1 42.3 17.4 34.6 13 23.1 4.3

OBC 89.5 69 63.9 37.3 29.5 12 18.2 6 8.5 1.8

ALL 88.3 68 67.8 41.2 35.4 16.3 22.2 9.9 12 3.2

Religion

AJMER

Hindu 89.7 60.7 69.2 32.2 34.8 13.3 19.2 6.4 6.2 2.7

Muslim 83.1 67.9 61 28.6 27.3 9.5 13 6 7.8 2.4

Christian 0 0 0 0 0 0 0 0 0 0

Others 0 0 0 0 0 0 0 0 0 0

All 88.8 61.8 68.1 31.6 33.8 12.7 18.3 6.4 6.4 2.6

UDAIPUR

Hindu 73.4 55.5 44.1 26.4 15.7 10.5 7.3 4.1 2.4 0.8

Muslim 0 0 0 0 0 0 0 0 0 0

Christian 0 0 0 0 0 0 0 0 0 0

Others 0 0 0 0 0 0 0 0 0 0

All 73.4 55.5 44.1 26.4 15.7 10.5 7.3 4.1 2.4 0.8

125

Social Group Literacy Primary and above Secondary and above Higher secondary and above Higher studies

Male Female Male Female Male Female Male Female Male Female

JODHPUR

Hindu 81.2 58.6 57.9 30.6 20.9 6.4 8 2.3 2.9 0.8

Muslim 46.2 22.7 15.4 2.3 0 0 0 0 0 0

Christian 0 0 0 0 0 0 0 0 0 0

Others 0 0 0 0 0 0 0 0 0 0

All 79 55.8 55.2 28.4 19.6 5.9 7.5 2.1 2.7 0.7

ALWAR

Hindu 87.6 68.9 70.8 43.1 40.5 19.1 26.3 12.7 15 4.4

Muslim 90 66.7 61 37.2 24 10 12.5 3.3 5 0.6

Christian 0 0 0 0 0 0 0 0 0 0

Others 83.3 40 66.7 20 33.3 0 33.3 0 16.7 0

All 88.3 68 67.8 41.2 35.4 16.3 22.2 9.9 12 3.2

ALL DISTRICT

General 82.0 61.9 68.7 43.2 38.6 15.3 21.5 8.6 11.8 4.1

SC 86.1 61.8 68.9 40.0 35.5 19.3 20.3 10.1 10.4 3.6

ST 75.3 56.4 45.5 25.9 16.6 9.3 7.7 4.0 2.9 1.1

OBC 85.2 61.6 61.3 30.7 26.4 8.9 13.9 4.4 5.1 1.3

ALL 82.4 60.2 58.8 31.8 26.1 11.2 13.7 5.6 5.8 1.8

Hindu 82.4 60.2 59.4 32.2 26.7 11.7 14.1 5.8 5.9 2.0

Muslim 82.2 61.1 54.9 30.2 21.7 8.5 11.0 3.6 5.1 1.0

Christian 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Others 83.3 40.0 66.7 20.0 33.3 0.0 33.3 0.0 16.7 0.0

All 82.4 60.2 58.8 31.8 26.1 11.2 13.7 5.6 5.8 1.8


ii) Occupation

301. The section is a short note on gender-wise analysis of the distribution of workforce usually working in the principal and subsidiary status. It is observed from the primary data that the occupational distribution in the total workforce is tilted towards agricultural activities. However, a striking feature of the trend is that a larger proportion of the farmers have reported this as their subsidiary economic activity. In Ajmer, 56 percent of the large size holding size households reported “agriculture in own land” as their principal activity and major proportion of small land holders population (86%) reported working in their own agricultural land. However, a higher proportion of the farmers in Jodhpur are engaged in working in their agriculture as their subsidiary economic activity across all size class of land. In Alwar, most households reported agriculture as their subsidiary economic activity. The remaining population are mostly engaged in regular salaried employment and working as casual labour.

302. Scarcity of water for irrigation is a major issue faced by farmers which is a key contributor to low levels of productivity. Lack of access to entitlements and support are also a vital reason for farmers opting agricultural activity as subsidiary economic activity. It is to be noted that the state has witnessed

126

the trend of slight decline in the primary sector, however, it still holds larger proportion of the households engaged in agriculture for self-consumption. 303. Not many are attending educational institution. While Ajmer and Alwar have higher proportion attending institution, very people are interested in attending institution in Udaipur. 304. Women are engaged mostly in domestic chores across all size class of land in all the four districts. A majority of women reported attending domestic duties as both principal and subsidiary economic activity. 34 percent of small farmers population in Ajmer and 33 percent in Udaipur, 44 percent of large farmers and 25 percent of the small farmers in Alwar reported working in agriculture in own land as their principal activity. Very few women are engaged in regular salaried employment and working as casual labour as well. Alwar district has the proportion of women attending educational institutional (8%) which is lesser proportion as compared to male population, while only 2 percent in Udaipur are attending educational institution.

iii) Migration

305. Table 71 shows that the men migrate more that the females. The highest proportion of male

population migrating is in Udaipur district (39.1%), followed by 23.5 percent in Jodhpur, 19.2 percent in

Alwar and 10.5 percent in Ajmer. Only 4 percent of female population in Udaipur migrate to work. Most

farmers from Udaipur migrate to Rajsamand district (Rajasthan) and Gujarat. The small and marginal

agricultural labourers work as casual labour for about six months in varied areas like agriculture farms,

construction workers, mines etc. Few of the farmers from the villages of Ajmer district go to Iran and

Dubai for employment such as driving vehicles, livestock rearing and construction. Few households in

Jodhpur migrate to Gujarat for cotton farming; however, the numbers of such families are quite small.

Most of the men in the village work as daily wage labourers in mines and other sectors in Alwar and

migration (both long- and short-term) was not common.

306. Men from almost all households work as daily wage labourers as farming is difficult due to scarcity of water for irrigation. The shift in employment out of agriculture has been slow. Rajasthan state is rich in minerals; most farmers work in quarry in the near vicinity. Though the workforce in agriculture is decreasing, the migration rate is not very high as the quarries are nearby the villages.

Table 71: District wise average distribution of sample households on Migration rates by social group and religion

Social Group Religion

AJMER

Social Group Male Female Religion Male Female

General 8.7 0.0 Hindu 9.3 3.3

SC 6.6 1.5 Muslim 17.6 0.0

ST 10.0 0.0 Christian 0.0 0.0

OBC 11.6 3.4 Others 0.0 0.0

All 10.5 2.8 All 10.5 2.8

UDAIPUR

General 100.0 0.0 Hindu 39.1 4.0

SC 37.5 0.0 Muslim 0.0 0.0

ST 39.1 4.3 Christian 0.0 0.0

127

Social Group Religion

OBC 0.0 0.0 Others 0.0 0.0

All 39.1 4.0 All 39.1 4.0

JODHPUR

General 30.4 0.0 Hindu 21.2 0.3

SC 14.3 0.0 Muslim 56.0 4.0

ST 18.2 0.0 Christian 0.0 0.0

OBC 24.0 0.9 Others 0.0 0.0

All 23.5 0.6 All 23.5 0.6

ALWAR

General 3.4 0.0 Hindu 16.4 2.1

SC 20.5 2.7 Muslim 26.6 1.9

ST 5.9 0.0 Christian 0.0 0.0

OBC 21.5 2.0 Others 25.0 0.0

All 19.2 2.0 All 19.2 2.0

ALL DISTRICTS

General 20.6 0.0 Hindu 22.2 2.4

SC 16.7 1.9 Muslim 28.1 1.7

ST 35.3 3.6 Christian 0.0 0.0

OBC 18.6 2.1 Others 25.0 0.0

All 22.9 2.3 All 22.9 2.3


iv) Access to Social Security Schemes

307. As the government offered zero-balance accounts across all commercial banks, almost all households have a Jan Dhan Account. It had resulted in access of citizens to banking services and 99.1 percent in Ajmer, 97.1 percent in Udaipur, 97.4 percent in Jodhpur and 98.6 percent in Alwar have bank accounts. The use of Jan Dhan account is therefore rare. Only 9.6 percent in Ajmer, 17.8 percent in Udaipur, 20.6 percent in Jodhpur and 21.6 percent in Alwar have availed banking facilities using Jan Dhan Accounts. 308. Most farmers have Bhamasha card as shown in Table 72 yet they do not have knowledge about the benefits of the scheme or how to avail the benefits. Moreover, they have not linked their Bhamasha card with Aadhar card because of which some of them could not avail the benefits. Of the many schemes, almost all eligible beneficiaries have availed pension scheme in all the districts. In percentage terms, the representation is not seen in Table 72 as there were fewer populations of senior citizens in sample households.

309. Many of the farmers have availed benefit from the state scheme Mukhyamantri Nishulk Janch Yojana. As many as 61.1 percent of farmers in Alwar district have availed the benefit, followed by 56.7 percent in Udaipur, 53.9 percent in Jodhpur and 36.7 percent in Ajmer.

310. The data indicates that majority farmers did not have knowledge of crop insurance facility, institutional credit, and some of them do not know how to avail the benefits even if they are aware of the programme. Both awareness level and implementation of flagship programmes like Pradhan Mantri Fasal Bima Yojana (PMFBY) was noticeably inadequate. In Udaipur district, only 0.5 percent availed the

128

benefit of crop insurance as they had secured institutional loans; this was around 11 percent in Jodhpur, which is the highest as compared to the other sampled districts.

311. Awareness on the Swachh Bharat Mission in all the districts was the best as compared to all other schemes. Almost all households are aware about the scheme. 51.4 percent in Ajmer, 28.4 percent in Udaipur, 35.5 percent in Jodhpur and 35.6 percent in Alwar have availed the benefit. However, only few people are using the toilets. Most of the marginal and small farmers cannot to afford to construct the toilet as the incentive is provided only at the completion of the construction of toilets. Moreover, water is scarce which renders the toilets unusable. 312. The ground reality of access to social security schemes tells a disappointing story. Despite the presence of development schemes, there is evidence that the schemes are not reaching the beneficiaries. It is understood from the responses by the farmers that the reasons can be attributed to mainly lack of awareness at the village level, and inefficiency of the government in implementation. The reasons of inefficiency are improper monitoring, lack of accountability, corruption and poor extension services. Most of the small and marginalized farmers were unaware of their entitlements. Both public and private sector extension services were non-existent in all the villages surveyed across the four districts.

129

Table 72: Percentage of farmers who have access to Social Security Schemes

AJMER UDAIPUR JODHPUR ALWAR

NAME OF THE SCHEMES

Awareness of these

schemes?

Availed in the last 1

year

Awareness of these

schemes?


year

Awareness of these

schemes?


year

Awareness of these

schemes?


year

Jan Dhan Account 99.1 9.6 97.1 17.8 97.4 20.6 98.6 21.6

Bhamasha card 99.1 7.8 97.1 19.2 99.1 21.1 98.1 21.2

Widow pension schemes 90.4 14.2 96.6 5.8 97.8 13.6 98.6 9.1

Old Age pension scheme 92.2 17.0 98.6 18.8 99.1 26.3 99.0 27.4

Atal Pension Yojana 37.6 0.9 29.3 0.5 31.6 0.4 24.0 0.5

State Disability Pension Scheme 72.5 0.5 78.4 1.4 89.5 1.8 90.9 1.0

Pradhan Mantri Suraksha Bima Yojana 61.9 4.6 48.1 0.5 50.4 8.3 38.5 8.7

Pradhan Mantri Jeevan Jyoti Bima Yojana 48.6 3.2 47.6 2.9 44.3 5.3 31.7 6.3

Rashtriya Swasthya Bima Yojana 56.0 10.1 49.5 8.7 52.2 10.5 49.0 15.9

Rajasthan Janani Sishu Suraksha Yojana 90.8 27.5 96.6 46.2 92.5 20.6 93.3 28.4

Mukhyamantri Nishulk Janch Yojana 82.6 36.7 78.4 56.7 82.0 53.9 92.8 61.1

Swachh Bharat Mission 100.0 51.4 99.0 28.4 100.0 35.5 100.0 35.6

Pradhan Mantri Awas Yojana 64.7 3.2 84.1 20.7 95.2 11.8 88.9 4.8

Pradhan Mantri Fasal Bima Yojana 50.9 3.7 32.7 0.5 43.0 11.0 45.7 3.8

Mukhyamantri Rajshri Yojana 40.8 2.3 30.3 6.7 29.8 0.9 19.2 3.4

Sukanya Samridhi Yojana 50.5 6.4 34.6 2.9 34.6 1.3 18.3 0.5

Any other scholarship scheme 48.2 5.5 50.5 13.9 55.3 7.5 66.8 24.5


130

9) Income, Expenditure, Productive Assets, and Indebtedness in the Sampled

Villages

313. The survey collected information on various aspects of farm and non-farm activities practiced by rural households. This section provides a detailed assessment of the situation of the year 2016-2017. The economic characteristics of the households such as receipts and expenditure of both farm and non-farm activities which would also include income generated from wages/salary, pension and remittances. It also provides some of the key estimates like consumption expenditure, investment on productive assets and indebtedness of the households which has been obtained from the survey.

i) Average Monthly Income from Different Sources

314. Based on the data recorded for the year 2016-2017, average monthly income across size class of land possessed has been worked out for the same reference period by adding up income from wages, salary, net receipt from cultivation, farming of animals and non-farm business, pensions, remittances and salaries. 315. Figure 35 represents the proportion of income from different sources of all the four sampled districts. The average monthly income across all districts is mostly from salary and remittances, followed by non-farm sources, wages and farm business. Nearly 37 percent of the average monthly income in Udaipur is from salary and 30 percent in Alwar. While 23 percent of the monthly income is from non-farm sources in Jodhpur, only about 4 percent of the average monthly income is from farm business (cultivation and farming of animals). About 16 percent of the average monthly income is estimated to have generated from farm business (cultivation and farming of animals) in Alwar district. 316. The average monthly income earned from different sources is presented in Table 73. In Ajmer, farmers were mostly dependent on salary (Rs. 11,446) and remittance (Rs. 11,368) than farm business (cultivation and farming of animals) across all size classes of land. The income from farm business, non-farm business, salary and remittance goes up with increase in land size. While the average monthly income from cultivation of marginal population is Rs. 562, the average income of small, medium and large population are Rs. 1,072, Rs. 1,912 and Rs. 4,326.57. Raising of animals fetched more income than cultivation. The average income from livestock is higher in Ajmer as the livestock population is high. The average monthly income from wages is highest amongst marginal population (Rs. 5065/ month) as lower size classes of land mostly work in quarry which are located close to the villages in Masuda block. 317. In Udaipur district, the households receive higher income from farm activities and wages. In farm activities, the average monthly income from cultivation is higher than farming of animals as farmers in Kotra block engage in hybrid cotton seed production. Also, the income from cultivation increases with the increase in the size-class of land. The marginal farmers earn on an average Rs. 1,856 per month and large farmers earn Rs. 5,566/ month from cultivation. Farmers also earn income from wages as most men go to Udaipur and nearby places to work as wage labourers. Udaipur district has

It needs to be noted that NSSO

data does not capture pensions and

remittances. Also, the fewer

numbers of persons receiving these

and those salaried are very few in

numbers in the sample but their

reporting skews the figures. This is

the reason why the income figures

presented in Table 73 appear highly

inflated as compared to NSS 70th

Round.

131

the highest rate of migration yet the income from remittance (Rs. 4,388) is lower than the other districts.

Freedom from the chains of bonded labour

Thousands of farmers are working in both legal and illegal stone quarries that thrive across the state. Most of

the workers suffer from silicosis and other respiratory disease as they inhale silica while cutting and polishing

the sandstone. For the labour class, the mining industry is the only source of income and some are in debt trap

to the owners of the quarries. “… rural households are abysmally poor and are left with little choice but to deploy

their minors to work in these hazardous conditions”, says Mangilal Rao (age 52) in Jodhpur.

The use of child labour is common in an unregulated sector. Mangilal’s father, a quarry worker, passed away

when he was 16 years old. He had no choice than to start working in the quarry as a bonded labourer from 1980

to 1995 as he had 5 sisters to look after. He finally paid off the debt in 15 years.

In the year 1995, Gramin Vikas Vigyan Samiti (GRAVIS) initiated Khan Mazdoor Suraksha Yojana wherein they encouraged to form a Labour Union to educate them about their legal rights in the industry. “I was unaware about silicosis until then”, Mangilal said. GRAVIS encouraged him to leave working in mines and start a school for the children of bonded labourers. “I was so inspired by the idea and opened the school as I feel education is one of the most important factor to bring a change”. Initially, I started with the little money I had with a very basic fee in 2004. Today Khetri Trust provides funds to run the school. Since he is a Vansh Lekhah (Genealogy writer), his main source of income comes from the donations made by the people as it is considered as a noble work. “I am free today from bonded labour but there are still many labourers who are suffering and are diagnosed with silicosis.”

318. Very few farmers in Jodhpur district were engaged in farm activities during Rabi season given the scarcity of water. Therefore, the average monthly income from cultivation and livestock rearing is very low as compared to other districts. Most farmers engage in non-farm activities which includes income from wages, salary and remittance. Farmers with a higher land size class of land earn as much as Rs. 15,750 per month on an average as remittance. 319. Unlike Jodhpur district, farmers in Alwar engage widely in farm activities. This is because of availability of water for irrigation, fertile soils and access to market. The average monthly income from cultivation increases with increase in size class of land; while the income is Rs. 1,577/ month in lowest size-class of land, large farmers earn Rs. 14,531. Though the income from cultivation is higher than income from livestock, the income from the latter is also higher than districts like Udaipur and Jodhpur. The average monthly income from livestock rearing is Rs. 3,070 per month because of the availability of fodder and sale of produce like milk to collecting agents. Both male and female literacy rate of Alwar is high, and hence income from salary and remittance is also high.

132

Figure 35. Proportion of income from different sources


Table 73: Average monthly gross income (Rs) from different sources per farmer household during the agricultural year 2016-2017

Size class

of land

possessed

Net

receipt

from

culti-

vation

Net

receipt

from

livestock

rearing

Net

receipt

from

non-

farm

sources

Income

from

wages

Receipt

from

Salary

Receipt

from

Pension

Receipt

from

Remittance

Total

AJMER

Marginal 563 2,461 7,194 5,066 10,475 2,845 10,563 39,166

Small 1,072 3,341 5,501 3,906 11,811 3,093 14,056 42,781

Medium 1,912 6,328 8,938 4,323 18,333 5,917 0 45,751

Large 4,327 12,525 12,750 3,694 18,167 4,500 0 55,961

ALL 1,592 4,291 7,723 4,450 11,446 3,318 11,369 44,189

Cultivation 4%

Farming of animals

10%

Non-farm sources

17%

Wages 10%

Salary 26%

Pension 7%

Remittances 26%

AjmerCultivation

11% Farming of animals

2%

Non-farm sources

13%

Wages 11%

Salary 36%

Pension 4%

Remittances 23%

Udaipur

Cultivation 2%

Farming of animals

2%

Non-farm sources

23%

Wages 16%

Salary 20%

Pension 11%

Remittances 26%

JodhpurCultivation

9%

Farming of animals

7%

Non-farm sources

23%

Wages 11%

Salary 31%

Pension 2%

Remittances 17%

Alwar

133

Size class

of land

possessed

Net

receipt

from

culti-

vation

Net

receipt

from

livestock

rearing

Net

receipt

from

non-

farm

sources

Income

from

wages

Receipt

from

Salary

Receipt

from

Pension

Receipt

from

Remittance

Total

UDAIPUR

Marginal 1,856 394 1,754 2,181 6,925 739 4,341 18,190

Small 2,136 528 11,250 2,251 0 500 9,583 26,249

Medium 5,566 347 0 158 0 0 0 6,072

Large 0 0 0 0 0 0 0 0

ALL 2,095 426 2,617 2,169 6,925 734 4,388 19,355

JODHPUR

Marginal 158 593 7,333 4,860 7,320 3,120 8,889 32,274

Small 146 1,352 6,401 6,221 6,040 3,127 6,855 30,143

Medium 620 527 0 4,273 2,483 4,705 4,983 17,592

Large 438 666 0 4,926 6,000 790 15,750 28,569

ALL 443 741 6,838 4,964 5,959 3,313 7,911 30,169

ALWAR

Marginal 1,578 2,461 10,811 5,484 14,271 1,244 7,106 42,955

Small 4,857 3,008 6,125 5,160 20,000 679 13,750 53,578

Medium 12,888 6,835 0 3,203 0 583 10,479 33,988

Large 14,532 5,237 0 250 0 750 25,000 45,768

ALL 4,478 3,071 11,066 5,254 14,483 1,127 8,009 47,489

ALL DISTRICTS

Marginal 1,200 1,475 6,491 4,219 9,870 1,757 7,286 32,297

Small 1,186 2,263 6,229 5,080 9,751 2,686 10,500 37,695

Medium 2,548 2,727 2,103 4,143 5,884 4,445 4,538 26,388

Large 3,097 6,516 6,000 4,071 11,373 2,534 8,882 42,471

ALL 2,106 2,125 7,064 4,230 9,637 2,164 7,959 35,285


ii) Income in Cash Through Sale of Agricultural Commodities

320. Figure 36 depicts the average monthly cash income in the rural areas. As can be seen, Udaipur district has the lowest average monthly cash income (Rs. 6,115); the small land size class has an average monthly of only Rs. 4,901 and marginal population receives Rs. 6,139. The contribution from farm activities is very low in the sampled villages of Udaipur district. The fact that most of the land remains uncultivated due to the hilly terrain and scanty rainfall, the primary source of income of the farmers is mostly daily wage labour in the nearby towns on constructions of roads, sites and at the mines. 321. Alwar district has the highest average monthly cash income of the four sampled districts across all size class of land possessed (Rs. 13,905). The average monthly cash income increases as the size class of land possessed increases; the lowest size class of land earns an average of Rs. 18,996 and

134

the highest size class of land receives Rs. 31,710. As discussed above, the contribution is from both farm and non-farm business. 322. In Ajmer district, all farmers across the size-classes receive more than Rs. 10,000 per month. The average monthly cash income is estimated at Rs. 12,161. The average monthly income increases with the size-class of land. The marginal farmers earn an average of Rs. 10,783/ month, small farmers Rs. 14,548, and medium and large population earns an average of Rs. 15,317 and Rs. 19,877 each month. The major contributors to income is from farming of animals, and non-farm activities including salary and remittances. 323. The average monthly cash income of Jodhpur is Rs. 9,010 per month. Except for large farmers, all other size class of land earns less than Rs. 10,000. The medium land size class of population earns Rs. 7,444. Farmers in Jodhpur are mostly dependent on daily wage labour in the stone quarries. The contribution towards the monthly income is mostly from salary, remittances and other non-farm businesses. The large farmers earn an average monthly income of Rs. 12,334. 324. As discussed above, the rural households earn their income from various sources including cultivation, farming of animals, wages, and other non-farm occupations. Alwar and Ajmer district have a higher average monthly cash income as apart from cultivation which is considered the primary source of income, livestock, wages and salary income supplement the income of the rural households. While farmers in Jodhpur and Udaipur districts have diversified into various non-farm activities, a larger contribution of their income is from non-farm business, wages, salary and remittances. It can be deduced that the participation of farmers in non-farm activities could be either due to “push” factors (e.g. risk reduction, climatic condition, land constraints, response to a crisis) and/or “pull” factors (e.g. complementarities with existing income activities, higher profitability of the activities)34.

Figure 36: Average monthly cash income (Rs.) by size class of land

34 Barrett, C. B., Reardon, T., & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food policy, 26(4), 315-331.

(weightedAverage)

Marginal Small Medium Large ALL

AJMER 10783.58 14548.46 15317.84 19877.7 12161.33

ALWAR 12435.02 18995.95 31895.83 31710.41 13905.09

UDAIPUR 6139.8 4901.25 0 0 6115.99

JODHPUR 9531.68 8785.61 7444.96 12333.87 9010.8

0

5000

10000

15000

20000

25000

30000

35000

Ave

rage

mo

nth

ly in

com

e (

in ₹

)

135

iii) Consumption Expenditure

325. Considering the various expenses of food and non-food items of a household, the monthly consumption expenditure of the agricultural households was collected for food, cooking fuel, lighting, transport, mobile, healthcare, entertainment, intoxicant, personal articles, rent, loan repayment, imputed rental value, clothes and footwear, education, durable goods, repair and maintenance of house/vehicle and other major expenses on wedding and other social events. Table 74 shows the consumption expenditure of different items per person in a month.

iv) Investment on Productive Assets

326. The expenditure made on productive assets is an important indicator of investments being made on fixed capital. The assets are being used for the production process by the farmers both in farm and non-farm business. Assets considered for farm business included various agricultural machinery and implements, livestock and poultry and the immovable assets like land, building, etc. for non-farm business. 327. The average annual expenditure on productive assets used for farm business is Rs. 63,085 in Ajmer district. Of this, the investment on livestock and poultry is the highest. The population of livestock, particularly buffaloes, is high as almost all the farm households sell milk.

328. The average annual expenditure on agricultural machinery and implements is low in both Udaipur and Jodhpur district. Dependence on uncertain and scanty rainfall for cultivation in Jodhpur discourages farm households in Jodhpur from investing in agriculture. In Udaipur, it is the lack of market linkages that dissuades farmers from investing in agriculture. The expenditure on livestock is the least in Udaipur district as there is less availability of fodder and farmers do not stall-feed the animals. 329. Arid Jodhpur receives very less rain and has sandy and loamy soils. Kharif is the predominant season when cultivation happens and most farmers leave their lands fallow during the Rabi season due to a lack of irrigation. Naturally, investments on agricultural machineries and implements is the least as compared to the other three districts. On the other hand, the expenditure on livestock is high as farmers need to buy fodder during the drier season. 330. In Alwar district the average annual expenditure on total productive assets from farm business is quite high. Farmers cultivate both Kharif and Rabi seasons and irrigate the land. Most parts of Alwar district falls under the dark zone yet the primary source of irrigation continues to be the borewell. As these dry up in time due to over extraction of water, farmers invest further in exploring aquifers. The costs therefore pile up. Farm mechanisation is very high and most farmers own or rent tractors for ploughing.

136

Table 74: District-wise and item-wise average quantity and value of consumption per person of farmer households per 30 days D

istr

ict/

In

com

e cl

ass

Foo

d

Co

oki

ng

Fuel

Elec

tric

ity/

Li

ghti

ng

Tran

spo

rt

Tele

ph

on

e/

Mo

bile

Hea

lth

care

Ente

rtai

nm

ent

Into

xica

nt

Per

son

al

arti

cles

Ren

t

Loan

R

epay

men

t

Imp

ute

d

ren

tal v

alu

e

Clo

thes

an

d

foo

twea

r

Edu

cati

on

Du

rab

le g

oo

ds

Rep

air

and

mai

nte

nan

ce

of

ho

use

/ ve

hic

le e

tc.

Oth

er m

ajo

r ex

pen

ses

on

w

edd

ing,

so

cial

eve

nts

,

etc.

Mo

nth

ly p

er

cap

ita

exp

end

itu

re

OPD Indoor Fees etc. Books etc

AJMER

1 616.22 19.26 95.46 84.46 52.53 98.95 55.45 8.18 66.89 57.23 39.36 74.07 76.35 106.54 63.12 19.27 5.75 116.57 458.61 2114.26

(29) (1) (5) (4) (2) (5) (3) (0) (3) (3) (2) (4) (4) (5) (3) (1) (0) (6) (22) (100)

2 641.81 25.66 105.09 166.81 52.35 119.03 92.74 16.37 101.77 79.56 32.96 1298.04 51.99 143.54 70.14 22.73 56.37 200.02 696.63 3973.62

(16) (1) (3) (4) (1) (3) (2) (0) (3) (2) (1) (33) (1) (4) (2) (1) (1) (5) (18) (100)

3 659.29 31.88 97.25 194.63 57.38 97.78 64.83 24.5 99.16 75.41 34.24 191.24 69.58 118.42 83.04 25.69 33.88 75.77 196.54 2230.5

(30) (1) (4) (9) (3) (4) (3) (1) (4) (3) (2) (9) (3) (5) (4) (1) (2) (3) (9) (100)

4 893.56 62.87 90.59 120.3 70.79 127.85 38.13 25.69 105.69 64.6 45.05 1467.49 30.69 100.09 323.52 55.83 16.68 45.08 282.38 3966.9

(23) (2) (2) (3) (2) (3) (1) (1) (3) (2) (1) (37) (1) (3) (8) (1) (0) (1) (7) (100)

UDAIPUR

1 278.59 1.55 20.37 33.1 19.07 89.3 28.36 0.48 26.39 39.04 0.56 7.55 9.01 61.79 3.03 4.82 17.69 2.64 51.49 694.84

(40) (0) (3) (5) (3) (13) (4) (0) (4) (6) (0) (1) (1) (9) (0) (1) (3) (0) (7) (100)

2 346.75 0.81 21.54 37.11 19.74 87.4 32.84 0.81 33.7 41.79 4.07 15.53 5.28 69.8 2.02 9.36 0.37 11.89 27.63 768.46

(45) (0) (3) (5) (3) (11) (4) (0) (4) (5) (1) (2) (1) (9) (0) (1) (0) (2) (4) (100)

3 418.93 5.93 33.34 100.51 32.35 74.47 49.69 1.63 55.52 63.75 8.99 19.99 8.41 75.98 11.09 10.73 7.32 13.55 103.53 1095.71

(38) (1) (3) (9) (3) (7) (5) (0) (5) (6) (1) (2) (1) (7) (1) (1) (1) (1) (9) (100)

4 338.04 10.05 25.54 132.07 36.96 40.33 78.84 4.35 41.41 36.41 21.74 52.17 0 79.96 17.76 16.17 2.68 15.41 209.05 1158.95

(29) (1) (2) (11) (3) (3) (7) (0) (4) (3) (2) (5) (0) (7) (2) (1) (0) (1) (18) (100)

JODHPUR

1 637.28 8.63 39.27 54.82 30.09 75.9 148.34 1.2 88.86 46.86 73.05 45.93 15.57 84.7 29.26 19.01 8.71 37.06 241.41 1685.94

(38) (1) (2) (3) (2) (5) (9) (0) (5) (3) (4) (3) (1) (5) (2) (1) (1) (2) (14) (100)

2 526.26 7.98 35.33 58.33 26.3 49.61 56.93 1.17 72.26 45.14 66.23 19.3 12.06 78.93 7.67 12.31 4.64 17.72 327.42 1425.57

(37) (1) (2) (4) (2) (3) (4) (0) (5) (3) (5) (1) (1) (6) (1) (1) (0) (1) (23) (100)

3 648.61 17.41 47.12 90.79 28.75 78.14 73.74 4.63 96.57 44.44 78.83 94.91 16.05 92.29 28.04 13.14 3.48 177.84 218.31 1853.09

137

Dis

tric

t/

Inco

me

clas

s

Foo

d

Co

oki

ng

Fuel

Elec

tric

ity/

Li

ghti

ng

Tran

spo

rt

Tele

ph

on

e/

Mo

bile

Hea

lth

care

Ente

rtai

nm

ent

Into

xica

nt

Per

son

al

arti

cles

Ren

t

Loan

R

epay

men

t

Imp

ute

d

ren

tal v

alu

e

Clo

thes

an

d

foo

twea

r

Edu

cati

on

Du

rab

le g

oo

ds

Rep

air

and

mai

nte

nan

ce

of

ho

use

/ ve

hic

le e

tc.

Oth

er m

ajo

r ex

pen

ses

on

w

edd

ing,

so

cial

eve

nts

,

etc.

Mo

nth

ly p

er

cap

ita

exp

end

itu

re

OPD Indoor Fees etc. Books etc

(35) (1) (3) (5) (2) (4) (4) (0) (5) (2) (4) (5) (1) (5) (2) (1) (0) (10) (12) (100)

4 633.13 19.94 49.97 98.06 38.63 71.25 10.27 3.5 62 38.13 81.31 166.78 7.5 84.2 214.21 22.71 8.48 96.16 933.75 2639.96

(24) (1) (2) (4) (1) (3) (0) (0) (2) (1) (3) (6) (0) (3) (8) (1) (0) (4) (35) (100)

ALWAR

1 594.12 9.38 71.16 78.01 29.35 64.9 98.15 0.84 75.46 41.32 0 64 10.92 110.97 107.32 27.05 8.5 64.83 372.3 1828.59

(32) (1) (4) (4) (2) (4) (5) (0) (4) (2) (0) (3) (1) (6) (6) (1) (0) (4) (20) (100)

2 537.25 20.13 69.84 82.16 29.02 78.94 150.2 1.49 77.53 43.61 21.57 155.59 7.45 113.97 130.43 37.49 15.44 125.61 540.85 2238.58

(24) (1) (3) (4) (1) (4) (7) (0) (3) (2) (1) (7) (0) (5) (6) (2) (1) (6) (24) (100)

3 430.98 12.38 69.46 86.73 28.97 51.1 86.05 2.88 59.25 44.86 67.69 145.58 11.45 100.37 128.14 26.88 13.4 180.18 467.74 2014.1

(21) (1) (3) (4) (1) (3) (4) (0) (3) (2) (3) (7) (1) (5) (6) (1) (1) (9) (23) (100)

4 493.43 15.02 72.51 125.82 38.97 57.51 345.17 9.74 76.24 77 46.95 709.86 11.74 124.25 239.28 74.17 71 190.31 420.22 3199.2

(15) (0) (2) (4) (1) (2) (11) (0) (2) (2) (1) (22) (0) (4) (7) (2) (2) (6) (13) (100)

All 526.27 9.30 55.15 61.78 31.93 81.60 82.76 2.45 63.93 45.60 27.01 46.79 26.01 90.45 50.56 17.45 10.38 52.88 273.90 1556.18

ALL DISTRICTS

1 (34) (1) (4) (4) (2) (5) (5) (0) (4) (3) (2) (3) (2) (6) (3) (1) (1) (3) (18) (100)

510.77 13.40 56.85 84.12 31.35 82.60 83.30 4.65 70.76 51.81 31.47 347.37 18.34 100.57 52.42 20.49 18.25 86.09 392.58 2057.20

2 (25) (1) (3) (4) (2) (4) (4) (0) (3) (3) (2) (17) (1) (5) (3) (1) (1) (4) (19) (100)

536.69 16.77 62.27 116.09 36.32 74.07 69.86 8.10 77.18 56.12 49.58 115.47 25.54 97.12 66.20 19.53 14.34 117.98 260.05 1819.29

3 (29) (1) (3) (6) (2) (4) (4) (0) (4) (3) (3) (6) (1) (5) (4) (1) (1) (6) (14) (100)

591.70 27.59 61.19 120.01 46.88 74.96 128.29 11.36 72.64 55.67 47.58 637.57 13.04 98.64 202.71 44.38 26.80 89.41 440.60 2791.02

4 (21) (1) (2) (4) (2) (3) (5) (0) (3) (2) (2) (23) (0) (4) (7) (2) (1) (3) (16) (100)


Figures in parenthesis are percent of total

138

Table 75: District wise average monthly expenditure incurred on productive assets per farmer household

Land size-class

Net annual expenditure (Rs) incurred per farmer household on productive assets

Farm business

Non- farm business Livestock and

poultry

Agricultural machinery and

implements

Total productive

assets

AJMER

Marginal 57,625 534 58,159 6,000

Small 73,833 2,735 76,568 8,355

Medium 27,500 13,365 40,865 3,730

Large 68,000 13,250 81,250 0

ALL 58,000 5,085 63,085 6,579

UDAIPUR

Marginal 5,097 1,101 6,198 2,475

Small 23,500 3,297 26,797 8,272

Medium 0 0 0 0

Large 0 0 0 0

ALL 6,937 1,428 8,365 3,634

JODHPUR

Marginal 8,385 465 8,851 1,500

Small 20,333 442 38,776 1

Medium 7,000 464 7,464 850

Large 30,000 405 30,405 0

ALL 14,982 457 33,439 991

ALWAR

Marginal 28,808 1,110 33,775 4,971

Small 5,000 21,850 26,850 2,760

Medium 0 10,136 25,136 5,640

Large 0 1,55,600 1,58,100 2,260

ALL 27,407 4,881 37,233 4,810

ALL DISTRICTS

Marginal 24,064.68 868.95 26,030.52 3,800.78

Small 37,914.74 4,226.14 50,485.71 3,737.93

Medium 10,897.06 4,779.65 17,662.00 2,161.62

Large 46,117.65 15,578.82 61,843.53 132.94

ALL 26,918.15 2,929.23 35,801.63 3,963.48


139

v) Outstanding Loans

331. The information was collected for the amount of outstanding loans as on date of survey, information on source and the purpose of taking the loan (refer Tables 76 and 77). 332. As seen on the consumption expenditure table, the expenditure of loan repayment in Ajmer is quite high. Most farmers in the district have availed loans from employer/ landlord (30.2%), Kisan Credit Card (25.5%) and from Banks (20.8%). Most farmers have reported that they have availed loan for the purpose of agriculture (39.6%), social events (28.3%), and for house repair and maintenance (11.3%): most households in Ajmer own pucca house. 333. In Udaipur district, most farmers have availed loans from relatives and friends (22.7%), followed by employer/landlord (18.2%). Farmers in Udaipur are not aware of KCC hence none have availed it nor any other institutional source. They have mainly used the loaned amount for social events (36.4%) like marriage and antysti (death ceremony), and for health purpose (20.5%). Discussions with the communities indicated that families incur considerable health costs. While all families possess Bhamashah card, it was seldom used due to unawareness of their entitlements and also because very often the card is not linked to Aadhar. Therefore, most households prefer private hospitals where they perceive that the treatment is better. 334. 54 percent of the farmers in Jodhpur district have availed loans from relatives and friends, followed by 16.3 percent from KCC and from employer/landlords (15.6%). It was reported that the loans from KCC have been used mostly for consumption purposes rather than for agriculture. Most farmers sought the loan for expenditure on social events (42.5%) like weddings and to incur the expenses for death ceremony. 31.3 percent of the farmers sought the loan for farming. Farmers in Jodhpur have availed loans for house repair and maintenance (18.1%), and 15% of the farmers have taken the loan for health as many farmers are suffering from silicosis and tuberculosis inherent from working in the stone quarries. 335. Comparatively, access to credit facility is performing better in Alwar district than in the other sampled districts as 45.8 percent of the farmers have taken loan from KCC. 37.3 percent of the farmers have also availed loans from relatives and friends, followed by 17.5 percent from banks.

Why farmers prefer non-institutional

loans

Farmers seek loans from informal

sources as there are no contact points in

these institutions and the

documentation process is complicated.

Farmers usually need money at a short

notice for a short period; for instance,

when the rains are delayed or when it is

insufficient, farmers do not consider

borrowing money from banks as the

priority is to access water for irrigation

from well owners. Banks ought to be

flexible and simplify their procedures

and also work out, products that fit the

needs of farmers, not the other way

around.

“Bank aise aise documents maangte hai

jiske baare mein hum ne kabhi suna hi

nahi hai” (Banks seek documents about

which we have not heard earlier)

Ramdev, 38, Piplaj Proper, Ajmer

140

Table 76: Percentage distribution of outstanding loans by different sources of loan of farmer households

District/

size

group Government

Co-operative

society Bank

Employer/

landlord

Agricultural/

professional

money lender

Shopkeeper/

trade

Relatives/

friends

Kisan

Credit

Card

AJMER

1 0.0 2.6 23.7 36.8 0.0 5.3 18.4 13.2

2 0.0 5.6 25.0 30.6 0.0 0.0 19.4 25.0

3 4.2 8.3 16.7 29.2 4.2 0.0 8.3 33.3

4 0.0 12.5 0.0 0.0 0.0 0.0 0.0 62.5

ALL 0.9 5.7 20.8 30.2 0.9 1.9 15.1 25.5

UDAIPUR

1 0.0 0.0 0.0 22.9 2.9 8.6 20.0 0.0

2 0.0 0.0 22.2 0.0 11.1 0.0 33.3 0.0

3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

ALL 0.0 0.0 4.5 18.2 4.5 6.8 22.7 0.0

JODHPUR

1 0.0 1.4 5.8 21.7 7.2 11.6 59.4 4.3

2 2.0 13.7 13.7 17.6 0.0 9.8 51.0 21.6

3 0.0 27.3 18.2 3.0 0.0 18.2 51.5 24.2

4 0.0 14.3 28.6 0.0 14.3 14.3 42.9 57.1

ALL 0.6 11.3 11.9 15.6 3.8 12.5 54.4 16.3

ALWAR

1 0.7 4.1 16.2 16.9 2.0 9.5 38.5 42.6

2 0.0 15.8 10.5 10.5 0.0 10.5 42.1 63.2

3 0.0 22.2 55.6 0.0 0.0 11.1 0.0 66.7

4 0.0 0.0 0.0 100.0 0.0 100.0 100.0 0.0

ALL 0.6 6.2 17.5 15.8 1.7 10.2 37.3 45.8

ALL DISTRICTS

1 0.2 2.0 10.9 24.1 2.7 8.6 31.6 15.8

2 0.9 10.5 17.7 20.7 0.4 5.9 37.6 27.5

3 1.0 22.2 22.8 8.8 1.0 13.0 34.5 32.0

4 0.0 12.6 13.5 5.9 6.7 12.6 26.1 56.3

ALL 0.5 5.9 13.7 20.0 2.7 7.9 32.7 21.8


141

Table 77: Percentage distribution of outstanding loans by purpose of loan of farmer households District/

Size

group Consumption Agriculture Education Health

Asset

purchase

Setting up

business/

enterprise

House repair

and

maintenance

Social

events

Land

purchase

AJMER

1 10.5 18.4 7.9 18.4 2.6 5.3 13.2 31.6 0.0

2 0.0 36.1 0.0 5.6 2.8 11.1 16.7 38.9 0.0

3 0.0 58.3 4.2 4.2 8.3 8.3 4.2 16.7 0.0

4 0.0 100.0 0.0 0.0 0.0 12.5 0.0 0.0 0.0

ALL 3.8 39.6 3.8 9.4 3.8 8.5 11.3 28.3 0.0

UDAIPUR

1 11.4 14.3 2.9 22.9 2.9 11.4 5.7 34.3 0.0

2 22.2 22.2 0.0 11.1 22.2 0.0 0.0 44.4 0.0

3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

ALL 13.6 15.9 2.3 20.5 6.8 9.1 4.5 36.4 0.0

JODHPUR

1 11.6 7.2 2.9 17.4 1.4 2.9 14.5 52.2 0.0

2 23.5 41.2 3.9 13.7 2.0 2.0 13.7 35.3 0.0

3 12.1 54.5 0.0 6.1 0.0 3.0 30.3 36.4 0.0

4 14.3 85.7 0.0 42.9 0.0 0.0 28.6 28.6 0.0

ALL 15.6 31.3 2.5 15.0 1.3 2.5 18.1 42.5 0.0

ALWAR

1 16.2 45.3 7.4 13.5 4.1 4.1 16.9 38.5 0.0

2 31.6 63.2 15.8 21.1 0.0 0.0 10.5 21.1 0.0

3 11.1 122.2 0.0 11.1 11.1 0.0 11.1 11.1 0.0

4 100.0 0.0 0.0 0.0 200.0 0.0 0.0 0.0 0.0

C 18.1 50.8 7.9 14.1 5.1 3.4 15.8 35.0 0.0

ALL DISTRICTS

1 12.6 22.8 5.3 18.3 2.9 6.5 12.1 38.0 0.0

2 16.0 41.5 3.9 11.6 2.8 5.0 13.8 35.1 0.0

3 9.1 64.4 1.0 6.3 3.4 3.9 21.6 28.4 0.0

4 12.6 87.4 0.0 20.2 11.8 5.9 13.5 13.5 0.0

ALL 12.7 34.4 4.1 14.7 4.2 5.8 12.5 35.6 0.0


142

vi) Land Distribution

336. The holding size varied between districts, agro-climatic zones as well as social groups. Udaipur had the smallest average landholding size of 0.38 ha, owing to fragmentation. Jodhpur on the other hand had the highest average landholding size of 1.60 ha. Ajmer and Alwar recorded average landholding of 1.13 ha and 0.57 ha respectively. 337. While every household in the sample villages owned some land in Udaipur, the trend did not hold true for other districts. Around four percent of the total sample population of Ajmer and Jodhpur were landless followed by Alwar with two percent of landless households. 338. Based on the land size class, the sample households were divided into four categories

Marginal: <1 hectare Small: 1 to 2 hectares Medium: 2 to 10 hectares Large: >10 hectares

Table 78. District wise percentage distribution of farmers by land size class

District Ajmer Alwar Udaipur Jodhpur All Districts

Marginal 73.08 87.02 98.08 48.68 76.02

Small 22.11 8.17 1.92 29.82 15.91

Medium 5.77 3.85 0 18.42 7.26

Large 3.85 0.96 0 3.07 2.02


339. Perusal of Table 78 indicates marginal farmers constitute the highest proportion within the sample villages (76.17%) followed by small, medium and large farmers. 340. Inter-district analysis reflects Udaipur has the highest number of marginal farmers (98.07%) followed by Alwar and Ajmer. With 48.68 percent of farmers having less than one hectare of land, Jodhpur had the smallest proportion of marginal farmers amongst all four districts. 341. With the exception of Udaipur where the sample population had a majority of scheduled tribes, OBCs were the largest community practising agriculture in all other districts.

74%

16%

8%

2%

Marginal

Small

Medium

Large

Figure 37. Distribution of Farmers by Land-Class Size

143

vii) Crop Husbandry

Income from Farming

342. The cumulative income in the four districts for the different size classes is presented in Table 79.

Table 79. Income from Farming in the Four Districts

Marginal Small Medium Large

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce Value of Sale

Kharif

Alwar 73,802 50,524 57,786 45,453 63,415 48,471 99,780 74,327

Ajmer 31,958 23,391 38,822 23,637 39,142 25,719 82,757 51,245

Udaipur 1,08,013 47,144 1,32,996 51,851 0 0 0 0

Jodhpur 9343 5,817 10,843 6,508 17,301 10,446 18,547 11,277

All Districts

30,779 31,719 35,112 31,862 29,964 21,159 50,271 34,212

Rabi

Alwar 62,158 44,345 1,55,014 1,17,711 2,87,446 1,56,786 5,03,350 5,02,500

Ajmer 21,939 14,856 42,302 49,300 1,29,834 94,081 1,22,467 1,03,770

Udaipur 22,811 20,903 25,781 24,078 0 0 0 0

Jodhpur 1,890 0 21,200 8,200 0 0 0 0

All Districts

27,199 20,026 36,074 24,822 2,08,640 2,50,867 3,12,908 3,03,135

343. The key takeaways from Table 79 are the following:

a) The value of the output from farming was the highest in Udaipur. However, due to lack of markets in the district, the value of sale was comparatively lower. Among all districts, farmers in Jodhpur had the lowest income.

b) Farmers in Alwar district earned the highest through the sale of the produce. Well developed markets and rural infrastructure are the reasons.

c) Farming during the Rabi season is dependent on the soil moisture and availability of irrigation. This is the most limiting factor for farmers in Jodhpur.

d) Large farmers across the four districts had the highest income. It was significantly higher than other size classes.

344. The production and income levels for the different size classes in the four districts are discussed below. Kharif Alwar Production of different crops (quintals):


Irrigated

Unirrigated Total

Irrigated

Unirrigated Total

Irrigated

Unirrigated Total

Irrigated

Unirrigated Total

Jowar 0.25 0.00 0.25 1.61 0.00 1.61 1.60 0.00 1.60 0.00 0.00 0.00

Bajra 4.07 1.36 5.42 9.27 6.24 15.5

1 19.20 14.94 34.1

4 21.05 14.95 35.9

9

Maize 11.26 4.60 15.8

5 0.00 0.00 0.00 0.00 0.00 0.00 10.81 0.00 10.8

1

Tur 2.28 1.70 3.98 0.00 0.00 0.00 1.56 0.49 2.05 0.00 0.00 0.00

144

Moong 0.02 0.00 0.02 0.09 0.00 0.09 0.17 0.00 0.17 0.00 0.00 0.00

Chillies 0.64 0.64 1.28 1.08 0.97 2.05 0.00 0.00 0.00 0.00 0.00 0.00

Veg 2.10 2.05 4.15 2.28 2.25 4.53 2.52 2.49 5.01 0.00 0.00 0.00

Sesame 0.02 0.00 0.02 0.34 0.56 0.90 0.00 0.00 0.00 0.00 0.00 0.00

Guar 4.98 4.04 9.02 6.67 2.84 9.50 3.18 2.89 6.07 18.14 15.54 33.6

9

Lilium 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7.07 6.86 13.9

3

Value of Produce (Rupees)

Crop


Value of Product

Value of Sale

Value of Product

Value of Sale

Value of Product

Value of Sale

Value of Product

Value of Sale

Jowar 399 0 2,616 0 2,600 0 0 0

Bajra 5,407 1,803 12,327 8,300 25,533 19,876 27,990 19,877

Maize 15,366 6,274 0 0 0 0 14,760 0

Tur 11,520 8,576 0 0 7,865 2,475 0 0

Moong 120 0 480 0 897 0 0 0

Chillies 7,020 7,020 11,897 10,675 0 0 0 0

Veg 21,000 20,475 22,750 22,500 25,200 24,920 0 0

Sesame 102 0 1,700 2,800 0 0 0 0

Mustard 10,800 4700 0 0 0 0 0 0

Guar 2,068 1,676 2,766 1,178 1,320 1,200 7,530 6,450

Lilium 0 0 0 0 0 0 49,500 48,000

Wheat 0 0 3,250 0 0 0 0 0

Total 73,802 50,524 57,786 45,453 63,415 48,471 99,780 74,327


a) Marginal farmers have the most diversified cropping pattern. Intelligent allocation of their limited holdings across numerous crops earns them higher gross returns than both small and medium farmers. Income from sale across the three size classes is comparable. Large farmers, on the other hand, cultivate a limited menu of crops and practice monocultures.

b) The highest earning, both gross as well as the net, to marginal, small and medium holding size is from cultivating vegetables. Large farmers earn the highest from floriculture.

c) Bajra and guar are cultivated by farmers belonging to all size-class. Bulk of the former is retained for self-consumption while the latter is usually sold.

d) There is a marked preference for cultivating vegetables against wheat by farmers, given the higher margins. Large farmers, however, prefer floriculture which fetches them the higher margins.

Ajmer

Production of different crops (quintals):


Irrigated

Unirrigated Total

Irrigated

Unirrigated Total

Irrigated

Unirrigated

Total

Irrigated

Unirrigated Total

Jowar 0.69 0.36 1.05 1.30 0.00 1.30 2.10 1.23 3.3

3 4.51 1.23 5.74

145


Irrigated

Unirrigated Total

Irrigated

Unirrigated Total

Irrigated

Unirrigated

Total

Irrigated

Unirrigated Total

Bajra 3.28 0.00 3.28 3.46 0.00 3.46 1.90 0.00 1.9

0 5.42 0.00 5.42

Maize 2.37 1.72 4.09 2.42 1.64 4.06 3.67 1.85 5.5

2 3.37 0.74 4.11

Urad 0.76 0.56 1.32 0.09 0.09 0.18 0.50 0.22 0.7

2 0.27 0.00 0.27

Mong 0.59 0.54 1.13 1.21 0.47 1.69 0.17 0.00 0.1

7 1.99 1.22 3.21

Groundnut 0.75 0.62 1.37 0.31 0.31 0.62 2.08 1.44

3.52 0.49 0.44 0.93

Sesame 0.20 0.10 0.29 1.20 1.20 2.40 0.00 0.00 0.0

0 4.93 4.58 9.51

Guar 8.84 8.55 17.4

0 11.4

5 7.71 19.1

6 0.00 0.00 0.0

0 33.5

7 28.92 62.4

9

Peas 0.00 0.00 0.00 0.44 0.00 0.44 3.56 3.11 6.6

7 2.49 1.14 3.62

Chillies 0.48 0.47 0.95 0.00 0.00 0.00 0.00 0.00 0.0

0 0.00 0.00 0.00

Vegetables 0.24 0.23 0.47 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

Aloe vera 0.18 0.18 0.36 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00

Barley 0.00 0.00 0.00 6.00 6.00 12.0

0 0.00 0.00 0.0

0 0.00 0.00 0.00

Value of Produce (Rupees):

Crop


Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Jowar 1,125 582 2,118 0 3,408 2,000 7,332 2,000

Bajra 4,357 0 4,600 0 2,527 0 7,204 0

Maize 3,233 2,353 3,300 2,238 5,011 2,524 4,595 1,012

Urad 3,788 2,792 458 458 2,516 1,098 1,373 0

Mong 3,080 2,804 6,333 2,478 912 0 10,407 6,350

Groundnut 3,150 2,611 1,313 1,313 8,768 6,097 2,060 1,876

Sesame 987 487 6,000 6,000 0 0 24,654 22,899

Guar 3,670 3,550 4,750 3,200 0 0 13,932 12,000

Peas 0 0 2,000 0 16,000 14,000 11,200 5,108

Chillies 5,333 5,133 0 0 0 0 0 0

Vegetables 2,435 2,280 0 0 0 0 0 0

Aloe vera 800 800 0 0 0 0 0 0

Barley 0 0 7,950 7,950 0 0 0 0

Total 31,958 23,391 38,822 23,637 39,142 25,719 82,757 51,245


a) The total value of produce and the value of sale are both proportional to the size class.

146

b) Large farmers have the highest income from cropping while there is hardly much difference in income levels of marginal, small and medium farms.

c) Marginal farmers were found to earn the highest income from the sale of chillies. Small farmers showed a marked preference in growing and selling barley and sesame while medium farmers sold peas and groundnut. Bulk of the income of large farmers came from selling sesame, guar and moong.

d) Across all farms sizes, no farmer was found to be selling bajra, the staple produce in the district.

Udaipur


Marginal Small

Irrigated Unirrigated Total Irrigated Unirrigated Total

Paddy 2.28 0.00 2.28 1.34 0.00 1.34

Jowar 1.43 0.60 2.02 0.82 0.00 0.82

Maize 2.25 7.18 9.43 2.13 0.00 2.13

Urad 0.32 0.23 0.55 0.42 0.37 0.79

Arhar 0.40 0.38 0.77 0.44 0.39 0.83

Peas 0.74 0.53 1.28 0.00 0.00 0.00

Mong 0.20 0.17 0.38 0.00 0.00 0.00

Chillies 0.06 0.06 0.12 0.19 0.19 0.38

Garlic 0.77 0.62 1.39 0.00 0.00 0.00

Vegetables 0.07 0.03 0.10 0.00 0.00 0.00

Groundnut 0.27 0.15 0.42 0.00 0.00 0.00

Castorseed 0.22 0.28 0.50 0.00 0.00 0.00

Sesame 0.15 0.12 0.27 0.00 0.00 0.00

Soyabean 0.39 0.35 0.75 0.00 0.00 0.00

Cotton seed 2.60 0.62 3.22 4.06 1.54 5.60

Value of produce (Rupees):

Crop Marginal Small

Value of Produce Value of Sale Value of Produce Value of Sale

Paddy 2,508 0 1,470 0

Jowar 2,033 850 1,163 0

Maize 2,694 8,616 2,559 0

Tur 2,913 2,818 0 0

Urad 1,392 1,001 1,833 1,603

Arhar 1,978 1,876 2,197 1,936

Peas 3,200 2,300 0 0

Mong 1,040 876 0 0

Chillies 668 668 2,102 2,100

Garlic 7,500 6,000 0 0

Vegetables 663 330 0 0

Groundnut 1,030 567 0 0

147

Crop Marginal Small


Castorseed 1,060 1,325 0 0

Sesame 613 521 0 0

Soyabean 825 743 0 0

Cotton seed 77,896 18,654 1,21,672 46,212

Total 1,08,013 47,145 1,32,996 51,851


a) Among all four districts surveyed, farmers in Udaipur cultivated the most diverse range of crops.

b) Bulk of the income of farmers came from cotton seed production. Traders in Gujarat provide all inputs including the parent lines of seeds at credit to the farmers. After crossing the parent lines, the cotton is taken by the traders to Gujarat for ginning and extraction of seeds. After testing for germination, the farmers are paid after deducting the cost of inputs.

Jodhpur



Irrigated

Unirrigated

Total

Irrigated

Unirrigated

Total

Irrigated

Unirrigated

Total

Irrigated

Unirrigated

Total

Bajra 1.52 0.88 2.4

0 1.93 0.70 2.6

3 2.29 0.00 2.2

9 4.01 0.00 4.0

1

Mong 0.32 0.26 0.5

8 0.29 0.28 0.5

7 1.70 1.37 3.0

7 0.43 0.40 0.8

3

Sesame 0.10 0.08

0.17 0.23 0.21

0.44 0.07 0.00

0.07 1.06 1.04

2.10

Guar 1.90 1.45 3.3

5 4.74 3.38 8.1

2 3.59 3.05 6.6

4 6.51 5.30 11.81

Jowar 1.00 0.00 1.0

0 0.93 0.00 0.9

3 1.03 0.00 1.0

3 0.85 0.00 0.8

5

Ragi 0.16 0.00 0.1

6 0.00 0.00 0.0

0 0.00 0.00 0.0

0 0.00 0.00 0.0

0

Urad 0.41 0.33 0.7

3 0.44 0.28 0.7

2 0.34 0.32 0.6

6 0.53 0.47 1.0

0

Vegetables 0.12 0.10

0.22 0.07 0.05

0.12 0.09 0.07

0.16 0.00 0.00

0.00

Value of Produce (Rupees):

Crop


Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Bajra 1,939 1,125 2,461 900 2,922 0 5,120 0

Mong 1,645 1,349 1,515 1,450 8,855 7,125 2,240 2,065

Sesame

466 365 1,100 1,012 356 0 5,098 5,000

Guar 789 600 1,967 1,403 1,489 1,267 2,700 2,200

Jowar 1,300 0 1,213 0 1,343 0 1,100 0

148

Crop


Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Ragi 258 0 0 0 0 0 0 0

Urad 1,756 1,400 1,900 1,200 1,456 1,367 2,289 2,012

Vegetables

1,189 978 687 543 879 687 0 0

Total 9,343 5,817 10,843 6,508 17,301 10,446 18,547 11,277


a) Marginal farmers grow a diverse range of crops as compared to other classes of farmers. b) Income from farming is abysmally low for all classes of farmers. This is mainly due to the

scarcity of water and a very high dependence on rainfall for cultivation. c) There were 13 drought affected districts in Rajasthan during 2016-17 and Jodhpur was among

these which is indicated by the low value of Barja in the district. Rabi Season Alwar

Crop

Marginal Small Medium Large Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Wheat 21,219 13,932 50,962 33,405 1,90,361 76,786 2,44,400 2,60,800

Mustard 20,340 18,796 52,562 49,928 88,000 80,000 2,53,500 2,41,700

Barley 4,207 2,600 1,800 1,378 0 0 0 0

Gram 3,193 2,267 6,800 3,000 4,560 0 0 0

Total 62,158 44,345 1,55,014 1,17,711 2,87,446 1,56,786 5,03,350 5,02,500


a) Farmers in Alwar district earn a decent income from farming during the Rabi season. The key crops grown are Wheat, Mustard, Bajra, Barley and Gram.

b) The highest value of produce comes from wheat. c) Marginal, small and medium farmers earn the most from selling mustard followed by wheat.

Large farmers earn the highest from selling Wheat followed by mustard. d) There is considerable gap in income as one goes up the size classes. Large farmers’ income is

eight-fold higher than the marginal farmers. Ajmer

Crop Marginal Small Medium Large Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Wheat 10,455 6,575 14,357 16,700 14,422 0 44,417 32,820

Barley 3,984 2,781 3,755 1,400 11,263 8,656 11,550 9,700

Gram 0 0 10,190 20,000 7,600 0 12,000 8,000

Mustard

7,500 5,500 4,500 4,500 0 0 18,000 17,750

Peas 0 0 0 0 4,675 4,675 0 0

Chillies 0 0 1,500 1,200 45,000 45,000 22,000 21,000

Cumin 0 0 0 0 21,000 21,000 14,500 14,500

149

Crop Marginal Small Medium Large Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of Sale

Vegetables

0 0 8,000 5,500 0 0 0 0

Total 21,939 14,856 42,302 49,300 1,29,834 94,081 1,22,467 1,03,77

0


a) The highest value of produce accrued to medium farmers. However, in terms of proceeds from

the sale, large farmers earned the highest. b) Farmers across all size classes cultivated wheat. With the exception of medium farmers, all

other farmers also sold wheat. Medium farmers were found to be growing and earning the highest income from chillies, which is a high-risk crop.

c) Medium and large farmers also reported cultivating and selling cumin. d) Income of marginal farmers from cropping was very poor and their key occupation was wage

labour. Udaipur

Marginal Small


Wheat 6,615 6,329 13,031 12,078

Barley 663 0

Gram 2,000 1,600

Chillies 3,982 3,750

Garlic 288 100

Coriander 124 0

Methi 32 0

Vegetables 645 100 Castorseed 5,100 5,100 12,750 12,000

Mustard 2,184 3,925

Guar 264 0

Total 22,811 20,904 25,781 24,078


a) The cultivation in the Rabi season is limited by water availability. In Udaipur, a relatively lower area was found to be cultivated during the Rabi season.

b) Marginal farmers were found to be growing a range of crops as compared to small farmers. c) The income levels of marginal and small farmers were comparable. d) Bulk of the produce is marketed in neighbouring Gujarat which increases the cost of

production and reduces income margins. Jodhpur

Crop


Value of Produce

Value of Sale

Value of Produce

Value of Sale

Value of Produce

Value of

Sale Value of Produce Value of Sale

Bajra 1,650 0 0 0 0 0 0 0

150

Wheat 0 0 13,000 0 0 0 0 0

Mustard 0 0 8,200 8,200 0 0 0 0

Total 1,890.00 0 21,200 8,200 0 0 0 0


a) Cultivation in Rabi season was very limited in Jodhpur districts due to the lack of irrigation among most farm households.

b) Very few marginal and small farmers were found cultivating. None of the medium and large farmers in the sample survey reported cultivating anything during Rabi season.

viii) Farm Inputs

Seeds 345. Farmers in Udaipur use farm-saved seeds for crops like Bajra, Maize and Jowar. However, these seeds have to be purchased in two years as productivity of the seeds decline in two years. For other commercial crops – cotton, for instance- seeds are purchased from the market or from input dealers. Use of indigenous varieties of seeds was also reported by farmers in Jodhpur because of their suitability to the climate and soil. Very few farmers reported the use of hybrid seeds. 346. Farmers in Ajmer and Alwar stated their preference towards hybrid seeds because of higher productivity. Seeds are usually procured from the market. Some of the women farmers in Alwar reported buying seeds from the Krishi Sakhis at subsidized rates.

Fertilisers and Pesticides 347. Farmers in all the sample districts reported buying fertilisers and pesticide from the market as per their requirement. Krishi Sakhis were another source of acquiring fertilisers at subsidized rates for farmers in in Alwar. Pesticides were reported to be used commercial crops which were also purchased from the market.

Manure 348. Most farmers reported applying farm-saved manure in their fields. Very few large farmers in Alwar and Ajmer reported buying of manure from the market. The primary reason for this can be the large landholding size and the practice of intensive agriculture.

Irrigation Table 80. District-wise Distribution of Sources of Irrigation

District Bore-well and Tube-well

Community well Rivers/ streams/ springs/ canal

Un-irrigated

Ajmer 7.8 30.7 2.8 39.7

Udaipur 4.3 31.7 13.5 50.5

Jodhpur 2.6 0 0.4 96.4

Alwar 72.2 6.3 0.5 21.2

All Districts 21.1 16.9 4.2 52.8


151

349. Jodhpur reported possessing the highest percent of the un-irrigated land as compared to other districts followed by Ajmer, Udaipur and Alwar. 350. With 96 percent of land unirrigated, agriculture in Jodhpur is largely rain-fed. Very few households possessed borewells, tube wells or community wells for irrigation. The probability of finding groundwater is a major uncertainty.

351. Community well was reported to be the primary source of irrigation for farmers in Udaipur followed by Ajmer and Alwar. Two of the sample villages in Girwa block of Udaipur hardly had any source of irrigation. Although a small stream flows through one of the villages, water was available to only a few households in the low-lying areas. Decline in water table around these villages was also reported as an issue discouraging the communities to invest in drilling of borewells.

Credit 352. Money lenders and private input dealers were reported to be the primary source of lending in all districts. While instruments like Kisan Credit Card, credit facilities under LAMPS are available, farmers still prefer taking loans from non-institutional sources. Farmers in very few numbers reported availing credit through KCC in Ajmer, Alwar and Jodhpur. However, none of them reported availing credit from the KCCs for a second time.

Expenditure on Farming inputs 353. Out of the four districts, households in Ajmer and Alwar reported a higher expenditure on different farming resources. This was primarily due to the intensive agricultural practiced in the districts. Surplus production and access to market is the driver for a higher intensity in agriculture in the two districts.


Fertilisers6% Manures

10%

Crop Protection

5%

Electricity16%

Diesel15%

Labour human

13%

Labour animal

7%

Irrigation8%

Hiring of machinery

16%

Land Lease4%

Ajmer Fertilisers10%

Manures9%

Crop Protection

10%

Electricity10%

Diesel15%

Labour human

11%

Labour animal

14%

Irrigation9%

Hiring of machinery

9%

Land Lease3%

Udaipur

Fertilisers7%

Manures9%

Crop Protection

5%

Electricity26%

Diesel5%

Labour human

10%

Labour animal

7%

Irrigation0%

Hiring of machinery

15%

Land Lease16%

Jodhpur Fertilisers9%

Manures4%

Crop Protection

3%

Electricity14%

Diesel14%

Labour human

8%

Irrigation11%

Hiring of machinery

11%

Land Lease26%

Alwar

152

Bridging the last mile gap in service delivery

In a subsistence agrarian economy, farmers are largely dependent on agriculture and forests for their livelihood

requirements. Farmers face externalities and complexities and rarely receive guidance from extension services. Building on

the SHG programme, Ibtada – an NGO - in Alwar focusses on livelihood enhancement in agriculture and livestock.

Building resilient communities through creating social capital

The organization has facilitated the mobilisation of a cadre of women to manage local resources on a sustainable basis and

improve service delivery. Krishi Sakhis, Pashu Skahis, Swasthya Sakhis and Shiksha Sakhis are the leaders who bridge the last

mile gap in extension and other services. These SHG members now provide services to Rajasthan Rural Livelihood Project

(RRLP) and to Mahila Kisan Sashaktikaran Pariyona (MKSP) project under NRLM. The strategy to build social capital has helped

the communities to engage with various actors and processes meaningfully through networks and connectedness. These

trained extension workers are now providing advisory services to the rural communities.

Indira of Muskaan SHG from Khedla village has been working as a Krishi Sakhi for the last three years. She also works as a Krishi Sakhi CRP for RRLP. A Krishi Sakhi disseminates information for improved cultivation practices that is translating to increased productivity. She has undergone numerous trainings facilitated by Ibtada and was provided exposure to best practices on how to cultivate bajra, mustard and wheat crop. Indira reported that she has visited Dausa, Alwar, Kota and Baran district on exposure trips and to impart knowledge to fellow women in other districts. She also helps the farmers to comprehend the soil test results including having an understanding of the macro and micronutrient levels in the soil. In the first year as Krishi Sakhi, Indira tested the soil of her plot of land and received recommendation to use iron, zinc sulphate, boron, magnesium and potash in addition to nitrogen. She applied the doses in bajra, mustard and wheat crop which resulted in an increase of 20 percent than the normal plots where micronutrients were not applied. She expressed that without these trainings, she did not have any idea regarding the work that was at their hand. “I had no knowledge of what crops to produce, at what time, what quantity of input items to apply, etc. Though I am illiterate, farmers today come to me for technical advice on crop cultivation after witnessing the result.” Every 15 days, the SHG members gather for Mahila Kissan Arthik Pathshala meetings. The trainings cover sustainable farming practices such as line sowing, seeds replacement, mixed cropping, right input items, etc. By training a cadre of resource persons, it has built local capacities and has improved last mile service delivery. Indira says, “Initially, people did not trust me. It took some time to develop that trust with the farmers, especially with men. Now, farmers in my village have adopted certain practices that I told them about which have worked well for them. When they appreciate, I feel a sense of pride in my work.”

153

Table 81. District-wise Distribution of Average Land-holding Size


354. Jodhpur on the other hand while reported to have a higher average of landholding size, reported less expenditure on agriculture inputs than Alwar and Udaipur (Table 81). The reasons being;

• the net area cultivated is high, but productivity is low owing to the non-availability of irrigation and alkaline soils.

• Farming is predominantly practised to meet household consumption.

355. Farmers in Udaipur while had water for irrigation but reported spending less on agricultural inputs primarily due to unavailability of a market to sell their produce.

356. Expense on Fertilisers: Due to intensive agricultural activity and availability of water, Alwar and Ajmer recorded a higher expenditure on fertilisers than the other two districts. Farmers in Jodhpur reported using less fertiliser due to the absence of irrigation.

357. Expense on Manure: Ajmer reported the highest usage of manure followed by Alwar, Jodhpur and Udaipur. This can be attributed to the higher numbers of large farmers and a higher average landholding size, the largest being 20 hectares.

358. Udaipur, on the other hand, had an average landholding size of 0.356 hectares (lowest among the four districts). The sample villages had no medium and large farmers. Smaller landholding size would require less quantities of manure which reasons or the low expense of manure. Analysis of data also suggests that over 48 percent of the farmers in the sample villages used manures saved from their own farms which accounts for the low expenditure on manure despite farming in two seasons.

359. Expense on Pesticides and Insecticides: Udaipur recorded higher expenses on pesticides and insecticides (second highest after Ajmer) due to the cultivation of vegetables and Bt Cotton which requires larger quantities of pesticides for optimum production. Jodhpur, on the other hand, recorded lowest expenses on pesticides. This was due to the cultivation of food grains where pesticides are not used as production is primarily for household consumption. 360. Expense on Electricity: Expenses on electricity was higher in Alwar and Ajmer followed by Jodhpur and Udaipur. Electricity is primarily used for pumping water from bore-wells for irrigation. Udaipur, on the other hand, reported very low expenses on agriculture because of rivers and streams being the major source of irrigation. Jodhpur recorded a higher expense on electricity than Udaipur despite shorter cropping seasons due to higher charges for three-phase connection mandated for agriculture use. 361. Expense on Diesel and hiring Machineries: Alwar and Ajmer reported having highest expense on diesel and for hiring machineries followed by, Udaipur and Jodhpur. Alwar and Ajmer have a flat topography, large operational holdings due to leasing-in of land, a greater number of large farmers which allows them to adopt farm mechanisation. Also, diesel operated pump sets are used for irrigation purposes which validates the higher costs borne by farmers in both the districts.

District Average Landholding size (in Ha)

Ajmer 1.13

Udaipur 0.38

Jodhpur 1.60

Alwar 0.57

154

362. Udaipur, on the other hand, has a larger expense on diesel than hiring machineries in comparison to Jodhpur which is accounted by the larger number of agriculture and machinery implements owned by the farmers in Udaipur as compared to those in Jodhpur. 363. The trend of expense on diesel and cost of hiring machineries was seen to be exactly opposite in Jodhpur. Farmers owned fewer amounts of agriculture machineries which accounted for their higher expense on renting machineries. 364. Expense on Labour (human and animal): Ajmer reported the highest expense on labour (both human and animal) owing to the larger landholding size and greater dependence on agriculture as primary income generation activity. Alwar on the other hand recorded a higher expense in human labour and the least expense in animal labour due to adoption of mechanisation. In Udaipur, while farmers were cultivating during both cropping seasons, reported a lower expense on human labour and a higher expense on animal labour. Smaller landholding size is the primary reasons for this. Both Udaipur and Jodhpur have an undulating topography which does not permit mechanised farming. Therefore, expenses on hiring animal labour was higher than in Alwar. 365. Expense on Irrigation: Water for irrigation was available in all the districts with the exception of Jodhpur. However, the costs incurred varied between the districts. Households that do not own borewells and dug wells usually purchase water from their neighbours. While farmers in Alwar and Ajmer paid cash for purchasing water, farmers in Udaipur usually paid a certain part of the produce depending on the crop type (one-third of the produce in case of Moong and one-fourth in case of Wheat). 366. Expense for Lease rent of land: Expenses on leasing in land was reported to be highest for Alwar followed by Ajmer, Jodhpur and Udaipur35.

ix) Value addition and Marketing

367. Alwar and Ajmer were the two districts reporting marketable surplus. Alwar reported the highest percent of farmers marketing their produce. Farmers in the district practice intensive agriculture which is supported by a ready availability of inputs and easily accessible markets for selling their produce. Multi-cropping in both Kharif and Rabi provides the farmers with a substantial surplus to sell in the APMCs. Fair remuneration for the crops in APMCs further encourage the farmers for surplus production. 368. In the absence of APMCs, the farmers face problems in getting proper remuneration for their produce as reported by farmers in Udaipur. Rather the prices are dictated by the traders and buyers which are always lower than the MSP. For instance, farmers in Kotra block in Udaipur district, while had surplus production, were not engaged in any value addition or marketing activities due to unavailability of market facilities in the block.

Table 82. District-wise Distribution of Percent Farmers Engaged in Marketing

District Ajmer Alwar Udaipur Jodhpur All Districts

Marginal 1.2 1.7 0 0 0.7

35 It may be noted that Rajasthan has the most liberal tenancy laws among the Indian states. The Rajasthan Tenancy Act, 1955 was amended in the year 2011 to add the provision in Section 45 for leasing out kathedari or khudkasht (self-cultivated) land on 15-year lease for the purpose of “agricultural operations”. This is applicable in the case of kathedar tenants as well as those who can sublet their holdings. As a result, the state does not have any restrictions on land leasing. It however does not recognise sharecroppers as tenants.

155

Small 2.8 0 3.6 0 1.6

Medium 3.9 11.1 0 0 3.7

Large 0 100 0 0 24.1


369. Farmers with higher surplus usually sell their produce at Khedbrahma in Sabarkantha district of Gujarat. However, they were not aware of the prevailing market prices in the mandis and often are not fairly remunerated. This results in distress selling of crops where the costs of transporting crops back to the villages would not break even the production costs of the farmers 370. Farmers in Jodhpur had no surplus to sell and the need for a market was not expressed by them. Some of the farmers in Shergarh sold their produce to local grocers in the nearby markets in return for yearly grocery supply.

371. As may be noted from above, there chiefly are four numbers of marketing channels. The first is that of direct marketing where farmers sell their produce to traders and aggregators at the farm gate. The second channel is that of farmers selling at the regulated APMCs. The third is predominantly in the case of floriculturists in Ajmer who sell their produce directly at farmgate and the surplus to retailers catering to religious places. The fourth is in the case with cotton seed production in the predominantly tribal district of Udaipur who engage in informal contract farming with traders from Gujarat who supply the key inputs and in turn buy the cotton seeds at harvest.

x) Status of APMCs

372. Three APMCs in Alwar, Jodhpur and Ajmer were covered during the field visit to observe their operations. The key observations are summarised below:

Alwar a) MSP is not followed in the mandi and prices are set based on demand and supply for

commodities. Final discovery is made based on an open auction in the market yard. b) There is no electronic display board to display the lot-wise quantity, quality and prices of

commodities in the mandi. Traders visit auction floor to check the product quality before participating in open ascending price auction. The APMC maintains an auction register and daily accounts of sales done in the Mandi.

c) The Mandi Commission ranges between 0.5 percent to 1.6 percent in case of most of the commodities. Here the transactions mainly happen via cash on the same day. Most of the times farmers take credit form commission agents and pay back it on selling their produce.

d) There are around 35 active traders who are also commission agents in the mandi. eNAM is not in operation in the mandi. Allowing a single mandi trading licence to trade in all mandis across the State is yet to be operationalized.

e) There is no common storage facility, no common grading facility, no restroom for farmers, no post office and no fire safety equipment in the mandi.

f) There are two submarkets yards under this mandi. No private mandi and consumer-farmer market are found in the area.

Distress Selling in Kotra block of Udaipur Farmers with smaller yields sell their produce to local traders at rates quite lower than the MSP. The reasons being,

• the farmer has no knowledge about the MSP

• transporting their produce to the market would not meet even their production costs

• lack of storage spaces compels the farmer to sell off their produce immediately after harvest.

156

Ajmer a) Regulated Grain and Fruit & Vegetable mandi are present in the Ajmer city. There is no private

mandi available in the district. b) E-NAM is not rolled out in the Mandi. Open auction is in practice in the Mandis and cash

payment to farmers are generally done on the spot. Prices are generally opened based on MCX and NCDEX prices. At times prices here are below Minimum Support Price (MSP).

c) In Grain mandi major arrivals during kharif season are Moong, Urad, Moth and Gawar. About 1.5 lakh quintal pulses arrive in a season. During rabi, Wheat (about 3 lakh quintal), Jeera (1.5 lakh quintal) and Jowar (0.7 lakh quintal) is traded.

d) Traded fruits and vegetables are mostly not produced locally. There all come from Gujarat (pomegranate and vegetables like garlic, onion, potato etc.), Madhya Pradesh (citrus, onion etc.), Karnataka (mainly banana), UP (mango), Shimla (apple), Maharashtra (onion, citrus etc.) Punjab and Haryana (mainly citrus).

e) There are 50 active grain traders and about 70 active Fruit & Vegetable traders in the Mandi. There is no common license available with the traders to operate in any other Mandi across the state.

f) Commissions generally paid by the buyers: 1.5 % for fruits & vegetables; 1.6% for grain and pulses; 1% for oilseeds.

g) Warehouse is available for grain storage (capacity- 1 lakh tons)

Jodhpur a) Major commodities traded in the Mandi are: Cumin (traded during March to May; average

daily turnover is 100 tones and about 300 sales transactions are done in a day), Yellow and black mustard (June to July; average daily total turnover is 50 tones and about 70 sales transactions are done in a day), Moong dal (traded during October to December; average daily turnover is 40 tones and about 60 sales transactions are done in a day), Isabgol (traded during March to April; average daily turnover is 45 tones and about 70 sales transactions are done in a day). In addition, guar gum/ seed and moth are also traded in the mandi in very small lots during October to December.

b) All the products are sourced within the radius of 50 km and most of the farmers are from within the district

c) Transactions mainly happen using cash on the same day. The farmers are normally hesitant to take a cheque and prefer cash-based payment. Current cash transaction limit of two lakh set by the Government is making it difficult for the farmers as many of them are not comfortable in banking transactions. At times the cheques of cooperative bank are issued by the traders and due to lack of sufficient fund in the bank branches, the payment gets delayed.

d) The Mandi Commission ranges between 1-2 percent for most commodities. The Mandi fees and commissions are paid by the licensed traders who buy the commodity from farmers through open auctions facilitated by authorized commission agents.

e) There are 116 active traders in the mandi and 85 percent of them also possess commission agent license and facilitate the trading process.

f) Final price of a commodity is decided based on an open auction that happens once in a day from Monday to Saturday.

g) If a farmer does not agree to final auction price, he can cancel the deal and waits for a future date to get a better price. In such cases, he can store the produce in private warehouse of commission agent. They normally store it for two days to one week and the farmers pay no charges for it. There is no storage facility in the mandi for common use.

h) After the implementation of GST, mandi transaction has increased by about 30 percent. However, traders are facing challenges for meeting the norms and their expenses has increased on this front.

157

i) Due to fall in export of guar gum, its prices are down this year. In case of oilseed also the prices are low this year due to availability of imported oilseeds.

j) Farmers normally transport their produce to the mandi using three-wheelers or other vehicles of capacity one to two tons.

k) There are four submarket yards in Jodhpur. No private mandi and consumer-farmer markets exist.

l) Grading facility for spices is expensive for the small farmers to afford.

m) There is no electronic display board in the mandi. Traders visit auction floor to check the product quality before participating in open ascending price auction. During the auction, the participants bid openly/verbally against one another; highest bidder closes the deal. The

APMC maintains auction register and daily accounts of sales done in the Mandi.

xi) Constraints

373. Major constraints reported by the farmers in all districts can be divided into two categories

Nature Induced Human Induced

low availability of water; drought; waterlogging; disease; insect damage; destruction by wind, storm and frost; untimely rain

low availability of pesticides, fertilizers and chemicals; low availability of quality seeds; high cost of inputs; Animal, bird and rat damage; high cost of inputs

374. Farmers in the sample districts stated different constraints hindering their optimum production. The Rank Based Quotients for the constrains (Figure 38) were derived and are summarised below.

Crop damage by Animals 375. Damage to crops by stray animals was reported to be a common constraint faced by farmers of all districts. The issue of crop destruction by stray cattle has escalated manifolds after the ban on the slaughter of cattle and camels issued by the central and state government respectively. Without any incentives, the community finds maintenance of aged cattle expensive and futile. This has led to an exponential increase in the number of stray cattle in almost every district which has resulted in a similar pattern of crop loss.

158

Figure 38. Rank Based Quotients for Constraints Faced by Farmers in Farming


Low availability of water 376. This was cited to be another common reason amongst farmers impeding optimum productivity. The issue of water can be manifested in two distinct ways;

• Availability of water- In areas like Girwa block of Udaipur, Jodhpur and parts of Alwar and Ajmer, finding water was a faint probability due to reasons like receding water table and geomorphological conditions. Anecdotal evidence suggests that the rapid depletion in water table has been an aftermath of the mining activities near the villages. This has also resulted in drying up the forests which were once found in abundance in Girwa.

• Accessibility of water- while water was available in some districts (like Udaipur), in the form of rivers and streams, it could be accessed by only a few farmers with fields in the low-lying areas. Settlements in the higher regions remained deprived of water for irrigation from these water sources and had to depend on bore-wells and dug-wells. However, bore-wells came with their own challenges such as, - Drilling a bore-well requires a substantial amount of money which is unaffordable by most

farmers - Using electricity to draw water for irrigation is not profitable because of high electricity

charges.

Pesticides and fertilisers 377. Insufficient knowledge about pesticides and fertilisers was reported to be another constraint in realising full potential in agriculture. No government aid was available in terms of disseminating

ALWAR

AJMER

Low availability of pesticides

Insect damage

Wind/cyclone/ storm

Disease

Animal/bird/rat damage

Drought

Low availability of water

Low availability of quality seeds

Flood

Untimely Rain

water logging

high costs of inputs

UDAIPUR

JODHPUR

159

knowledge on which pesticides to be used for what crops and awareness about the suitability of fertilisers to soil type. 378. While the use of fertilisers depended on the availability of water, use of pesticides depended on the type of crop produced. Usually, farmers growing vegetables and cotton reported the use of fertilisers. Pesticides consumed a substantial proportion of total agriculture expenses. They are usually bought by the farmers from the market. Given the financial constraints, farmers growing vegetables in Udaipur reported to buy pesticides on credit at a monthly interest rate of around two percent. Women farmers in Alwar mentioned about their dilemma in the type of fertiliser to be used in their field. Though one round of soil testing has been done in their fields, they still await the technical advice on the suitability of fertilisers for their agriculture field.

Quality Seeds 379. Availability of quality seeds on time was reported to be a constraint by farmers of all sample districts. While there are cooperatives and seed banks in the villages, either they are dysfunctional or fail to disburse seeds during the sowing period. Without any government subsidies or system for free seed distribution, the farmers are exposed to the uncertainty of the market. In such case, the farmer is left with no options but to procure seeds from the market or on credit from the input dealers. The price of seeds varied with dealers. 380. Interest rates and mode of payment is dictated by these input dealers. In case of a good harvest, the dealers charge a share of the produce and on the event of a crop failure, money is charged from the farmer.

Disease 381. Crop destruction by disease was reported to be yet another constraint hampering crop growth. Few of the reasons cited were,

• Farmers are not aware of the disease during the initial periods. In the absence of any extension officer, neither are they able to recognise the disease nor are they aware of the pesticides to be used for it.

• Delay in response often results in spreading of the disease to the entire field causing heavy losses for the farmers.

Access to Credit 382. Institutional Credit remained very low in the sample districts. Farmers reported it easier to borrow money from local money lenders or from the traders locally known as adatiyas. Borrowing from KCC was rare even though their rates of interest are way less than the non-institutional counterparts. However, availing credit through KCCs were not preferred for reasons such as,

• Absence of land records- Land is required as collateral for availing loans through KCC. While the land has been fragmented and cultivated by different people, it is not reflected in the land records which inhibits the farmers to avail loan through KCC

• Process of application is not user-friendly

• Repayment of loans is an issue as in many cases the loan availed is used for non-agricultural purposes.

383. In order to ascertain the opinion of lending agencies for poor delivery of credit to farmers, the study team met a senior official of a lead Scheduled Commercial Bank. The reasons ascribed by him were the following:

• In the case of the study villages, it is possible that repayment of debts taken from non-

institutional sources was a major compulsion for farmers to sell their crop and the creditor

usually insisted on repayment in the immediate post-harvest period. To do this the debtors

160

were forced to borrow once again from the same creditor and thereby could not access

institutional credit.

• The State Cooperative Department’s role in rural credit is important. An apex bank at the

state-level, 29 Central Cooperative Banks at the districts and GSS (6398 PACS and 580 LAMPs)

at the panchayats comprise a three-tier architecture for short-term credit disbursement. As

per NABARD policy short-term loan is provided to the farmers @ 7% interest rate but the GoR

announced 0 percent interest to farmers in the year 2012-13 which is still continuing in which

four percent of the share is that of the state government and three percent by central

government. While this boosted credit offtake, NABARD reduced the refinance rate by 10

percent points to 40 percent which is constraining the cooperative credit institutions.

• Inadequate field level staff and transport facilities in the banks results in poor recovery of

loans which in turn often makes farmers ineligible for subsequent loans. In many banks, the

field officer is not posted and consequently, the branch manager himself looks after field-level

issues.

• The workload of the field staff has increased phenomenally as the numbers of borrowers

supervised by them has gone up while the number of villages to be covered by them often

remains unchanged.

• Lack of staff motivation, resulting in poor quality of loaning. Rural bankers often lack a well-

defined career path as compared to their urban counterparts.

• The target approach followed in sanctioning the loans coupled with delays in preparation of

beneficiaries list often result in the disbursement of majority of the amount in the last months

of a financial year. On the other hand, farmers require timely credit, and when loans from

institutional sources are not accessible, they turn to other sources.

• Under target approach and loan melas several wrong beneficiaries get selected. For instance,

often, a barber is given a sheep unit, shepherds are given bullock carts and so on.

• Without sufficient knowledge of activities for which loans are taken, the borrowers tend to

mis-utilise the loan.

• Political interference in the banking system has had an adverse impact on both loan disbursal

and recoveries. With political parties campaigning for waiver of loans, the borrowers are

naturally unwilling to repay what they owe.

• The problem of overdues has become serious over the years due to various reasons including

poor quality of loaning and political pressures.

• Undue emphasis on credit while neglecting equally important non-credit supporting services

essential for successful rural lending. Poor extension and marketing services was cited as

examples.

• The multi-agency lending system at times translates to overlap in the area of operation of the

credit agencies.

• Some banks have opened scattered branches more for the purpose of deposit mobilisation

than for rendering credit service.

• While we have shown our competence in running efficiently higher-level institutions, we have

not been successful in streamlining the grassroots level rural credit set-up both in the co-

operative and commercial banking sectors. There has been improvement in the structure of

co-operative system in recent times but the overall quality of cooperative character and

operational standard needs vast improvements.

384. The trend of borrowing from traders was reported to be widespread among farmers in Alwar. These traders provide credit for buying inputs like seeds, fertilizers and manure before the sowing

161

season when the farmers are in dire need of money. The mode of repayment was in kind, where the farmer has to sell the produce at the price dictated by the trader. In case of crop loss, the interest gets compounded, often landing the farmers in debt trap. 385. Loaning money from money lenders was observed to be a practice in Udaipur. The rate of interest in such cases goes as high as ten percent a month. Agents encouraging Bt cotton were also reported to be a source of credit by the farmers in Udaipur. However, the source remains open to only those who cultivate Bt cotton. In such cases, the amount to be paid is deducted from the total sale value of the cotton. 386. LAMPS operating in the tribal districts also serve as a source of credit. However tribal farmers in either block of Udaipur could rarely avail the benefit of this scheme. the farmers find it difficult to repay the loan amount within a time span of one year especially in case of bad harvest. The interest gets compounded every year making it difficult for the famer to pay. In addition, it also restricts the farmer to avail loans from other institutional sources. Jodhpur on the other reported the trend of borrowing from people within the village. The rate of interest in such cases ranged from two percent to five percent per month.

xii) Crop Insurance

387. Crop Insurance proves to be an important instrument for the farmers to redeem crop losses. the proportion of farmers reporting crop loss in the sample districts remained quite high as indicated by Table 83. 388. Over 48 percent of farmers reported crop losses in Jodhpur followed by Ajmer, Alwar and Udaipur. However, discussions with the communities in different districts suggest awareness about crop insurance schemes was rather low. This was validated by quantitative analysis of data where 0.8 percent farmers reported to have additionally insured their crops followed by Alwar with a mere 0.2 percent reporting insurance of crops. The percentages for Jodhpur stood at a bare minimum of 0.1 whereas none of the farmers reported insuring their crop in Udaipur.

Table 83. Percentage Distribution of Farmers Insuring Crops by Land-class size

District/ size group

insured only when received loan

insured additionally

not insured

experience crop loss

received in time

delayed received

not received

AJMER

1 4.3 0.9 43.7 47.7 1.1 0.0 2.3

2 5.9 0.2 42.7 46.9 0.0 0.0 4.2

3 7.7 1.5 38.0 45.9 2.3 1.5 3.1

4 17.2 0.0 26.7 44.8 0.9 2.6 7.8

ALL 7.0 0.8 40.1 46.6 1.1 0.7 3.6

UDAIPUR

1 0.1 0.0 58.0 41.8 0.0 0.1 0.0

2 0.0 0.0 57.0 43.0 0.0 0.0 0.0

3 0.0 0.0 50.0 50.0 0.0 0.0 0.0

4 0.0 0.0 100.0 0.0 0.0 0.0 0.0

ALL 0.1 0.0 57.8 42.0 0.0 0.1 0.0

JODHPUR

1 1.4 0.0 48.6 49.7 0.0 0.3 0.0

2 11.6 0.0 36.3 48.3 0.2 2.8 0.7

3 18.7 0.3 25.8 45.6 1.1 4.9 3.6

162

District/ size group

insured only when received loan

insured additionally

not insured

experience crop loss

received in time

delayed received

not received

4 22.2 0.0 14.8 44.4 0.0 9.3 9.3

ALL 9.5 0.1 38.1 48.1 0.3 2.5 1.4

ALWAR

1 19.2 0.3 30.2 45.0 0.0 0.0 5.3

2 32.8 0.0 21.6 40.3 0.0 0.0 5.2

3 40.0 0.0 7.1 42.9 0.0 0.0 10.0

4 85.4 0.0 2.1 8.3 0.0 0.0 4.2

ALL 24.2 0.2 27.0 43.0 0.0 0.0 5.5

ALL DISTRICTS

1 6.7 0.3 45.3 45.4 0.2 0.1 2.0

2 11.9 0.1 37.5 46.5 0.1 1.3 2.5

3 18.9 0.5 26.2 45.3 1.2 3.5 4.3

4 23.6 0.0 19.7 42.5 0.4 5.6 8.3

ALL 10.1 0.3 40.7 45.0 0.4 0.9 2.6


389. Most of the farmers reported being not aware of the insurance schemes or the process of availing them. Some of them also reported the tedious paperwork as a deterrent for buying insurance. Delayed and miniscule compensation in case of crop loss also discourages farmers from investing in insurance products. None of the farmers in Ajmer reported having received their compensation on time where the largest proportion of farmers got their crops insured while availing loans. Around 0.3 percent of the farmers in Jodhpur reported having received their compensation on time. Ajmer reported 1.1 percent of farmers receiving timely compensation.

xiii) Livestock

390. Rearing of animals was observed in almost every household in all sample districts. Apart from catering to household nutrition needs, livestock also accounts for emergency financial requirements. In some sample districts with undulating and smaller landholdings, animals are used for tilling agriculture fields. 391. While the types of animals reared were observed to be same across all districts, the numbers differed according to affordability and need of the farmer household. Error! Reference source not found. provides an account of the average numbers of livestock reared across all districts. it also tries to bring out the preference of animals across land size class.

392. Perusal of Table 85 indicates that farmers in Ajmer and Alwar have a marked preference towards buffaloes over other domesticated animals. This trend can be explained by the following points;

• Both the districts have systems in place for sale of milk which works as an incentive towards buffalo rearing

• Agriculture productivity in both the districts is higher than Udaipur and Jodhpur. This translates into larger quantities of crop by-products which are used as cattle feed. Thus, the out of pocket expenses are lower even while the number of buffaloes is high.

163

393. Udaipur and Jodhpur, on the other hand, reported less preference towards buffalo rearing. Greater preference towards rearing of goats and sheep was observed in Jodhpur and Udaipur because of their low maintenance cost and adaptability to the climate and terrain.

Table 84. District-wise Distribution of Average Number of Animals Reared by Land-class size Type of Animals Cow Buffalo Goat Sheep Camel Poultry

ALWAR

Marginal 0.14 1.76 0.3 0 0.01 0.18

Small 0.47 2.71 0.82 0 0.05 1.47

Medium 0.13 4.2 0.88 0 0 2.25

Large 0.5 14 0 0 0 0.5

AJMER

Marginal 0.66 1.26 2 0.13 0 0

Small 1.8 2.47 2.43 0 0 0

Medium 1.4 2.08 0.8 6.66 0 0

Large 1.75 2.87 0.87 0 0 0

UDAIPUR

Marginal 1.12 0.86 3.74 0.24 0.00 3.15

Small 1 1 3.75 0 0 2.5

Medium 0 0 0 0 0 0

Large 0 0 0 0 0 0

JODHPUR

Marginal 1.23 0.16 5.53 0.91 0.11 0.39

Small 1.78 0.21 4.65 0.94 0.01 0

Medium 0.22 5.64 0.31 0 0 1.19

Large 1.08 2 3.5 0.62 0.04 0

All District

Marginal 0.8 1.0 2.9 0.3 0.0 0.7

Small 0.9 1.6 2.7 0.1 0.0 1.7

Medium 0.1 1.7 0.2 0.0 0.0 0.7

Large 0.3 6.7 0.2 0.0 0.0 0.2


164

Arid horticulture in Pushkar (Alwar)

The region is characterized by extreme temperature

and precipitation due to which the cultivation of

conventional crops is not economically viable.

Understanding the climatic conditions of the area,

farmers in Pushkar area have diversified to cultivating

arid horticulture crops; the conditions favour the

horticultural options such as ber (Ziziphus mauritiana),

aonla (Emblica officinalis), jamun (Syzygium cumini),

gunda (Cordia dichotoma), pomegranate (Punica

granatum), and lime.

Sarvan Lal Gahlot from Ganaheda village owns 6.5

bigha of land. He realized that the erratic rainfall is

resulting in unstable crop production. He therefore

opted for diversifying towards horticulture with

support from the State horticulture department. It has

been 20 years since this and has resulted in enhanced

income.

The fruit trees take 3-4 years to bear fruits. For improving water use efficiency, he uses drip irrigation. Sarvan

declared that water management and special pruning techniques are crucial for the plants to survive in these

trying conditions. He has two tube wells which are 400 to 700 ft deep as the groundwater levels have been

decreasing each year. Despite being regarded a progressive farmer, Sarvan Lal has not insured the crops as he

reported that the process is cumbersome and the loans are not sanctioned when he actually needs them.

Net income from horticulture plantation: 80 trees of Jamun

Production 200 kgs average.

Input cost 1,00,000 approx.

Total sale value 2,50,000 approx.

Net income 1,50,000

90 trees of Aonla

Production 130 kgs average

Input costs 20,000 approx.

Total sale vale 70,000 approx.

Net income 50,000

40 trees of Gunda

Input costs 10,000 approx.

Total sale value 30,000 approx.

Net income 20,000 approx

Total Net income 2,20,000 p.a.

165

394. Perusal of Table 85 indicates that farmers in Ajmer and Alwar have a marked preference towards buffaloes over other domesticated animals. This trend can be explained by the following points;

• Both the districts have systems in place for sale of milk which works as an incentive towards buffalo rearing

• Agriculture productivity in both the districts is higher than Udaipur and Jodhpur. This translates into larger quantities of crop by-products which are used as cattle feed. Thus, the out of pocket expenses are lower even while the number of buffaloes is high.

395. Udaipur and Jodhpur, on the other hand, reported less preference towards buffalo rearing. Greater preference towards rearing of goats and sheep was observed in Jodhpur and Udaipur because of their low maintenance cost and adaptability to the climate and terrain. 396. While every household in the Udaipur owned cows, the number of buffaloes was reported to be quite less. The trend can be explained

• The landscape of the sample villages is hilly and undulating. In addition, these villages are tribal dominated where the practice of cattle grazing is quite popular. The cattle are sent out to the nearby forests for grazing during the drier months. Buffalos, on the other hand, need to be stall fed which increases the expense of the household.

• Milk production is usually used for domestic consumption. There are no avenues for sale of milk which makes rearing buffaloes more of a burden than an incentive.

166

Table 85. District-wise Average Distribution of Fodder by Land Class Size

District wise average distribution of fodder by land class size

Fodder Availability Fodder Expense

Land Size class

Average Fodder

Requirement

Availability from Own

Sources

Purchased from

Market

Green Fodder

Dry Fodder Total Expense

LSU

Alwar

Marginal 848.88 738.8619 110.0221 66.29834 3800.851 3867.149 0.99

Small 1388.82 1313.529 75.29412 0 3588.235 3588.235 1.73

Medium 2335 2335 0 0 0 0 2.27

Large 8250 8250 0 0 0 0 7.26

All 1021.34 919.44 101.89 57.69 3600.74 3658.43

Ajmer

Marginal 1406.05 611.42 794.62 328.2895 9767.105 10095.39 1.17

Small 2525.778 1852.111 673.6667 511.1111 8633.333 9144.444 2.38

Medium 2495.455 1525.818 969.6364 0 10636.36 10636.36 2.1

Large 2175 2175 0 0 0 0 2.4

All 1806.64 1264.56 542.08 494.9541 9495.872 9990.826

Udaipur

Marginal 1388.201 1315.38 72.82108 36.76471 509.3137 546.0784 1.42

Small 1112.5 1112.5 0 0 0 0 1.88

Medium 0 0 0 0 0 0 0

Large 0 0 0 0 0 0 0

All

Jodhpur

Marginal 700.17 517.27 182.9 0 6744.28 6744.28 1.43

Small 756.85 479.22 277.63 685.29 9861.03 10546.32 2.53

Medium 890 639.5 250.5 0 7257.14 7257.14 1.38

Large 782.34 545.33 237.01 0 5714.28 5714.29 3.72

All 887.67 623.15 264.51 222.68 8248.71 8471.39


397. Grazing was observed to be a common practice in almost all districts. Crop residue contributed for a major proportion of cattle feed. Cooked meal is also prepared by women for higher milk production. Women from villages in Jodhpur mentioned about preparing cattle feed of Moth for cows and buffaloes and feed of moong for goats. 398. Analysis of the data suggests a correlation with the land size of the farmers and their expense on fodder. It can be said that the land-size of the farmer bears an inverse relationship to the expense incurred. While large farmers owned the maximum number of livestock, their expense on fodder remained the least. The trend can be attributed to larger quantities of agriculture residue produced through a greater land area under production. This amounts to higher production of agriculture by-produce which suffices for cattle feed. 399. However, the trend did not hold true for Jodhpur where farmers of all size class spent of buying fodder. The reasons being Jodhpur has a dry climate and the grazing lands dry up completely during the hotter months. Agriculture by-products lasts barely for three months. Under such circumstances, the farmer is left with no choice but to buy fodder from the market to sustain their

167

livestock. Presence of dairies encourages farmers to incur higher expenses on their milch cattle which holds true for Ajmer and Alwar. 400. Udaipur reported the lowest expense on the purchase of fodder due to availability of ample grazing areas nearby. In addition, fodder cultivation on farm bunds was observed to be a practice in villages in Kotra block of Udaipur. Expense on fodder was observed to be comparatively higher in the Jabla block of Udaipur which is relatively drier. Farmers reported buying fodder during the drier months. 401. The villages in the block had a fodder bank which used to collect fodder during months of surplus. This would suffice the demand for fodder during the drier months. However, it has become dysfunctional. Also, the system of rotational grazing has been dismantled by the community which has culminated in additional spending in fodder. 402. Jodhpur while reported to have the lowest cattle count amongst all districts, expense on cattle fodder remained quite high. The reasons being lack of grazing area and low crop production. Khejri leaves are also used as fodder for goats. However, the availability is exhausted by the drier months. Farmers reported buying fodder for almost six months a year which increases their expenses on livestock rearing. 403. The assortment of livestock producucts sold varied across districts and land class size. While districts like Ajmer and Alwar focussed more on the sale of milk products, Udaipur and Jodhpur concentrated more on the sale of other products like wool, meat, skin and honey. 404. Table 86 gives the district wise disaggregation of sale of produce from livestock. It can be well interpreted that marginal farmers diversify their basket of sale over a larger variety of livestock produce than their counterparts for higher risk mitigation.

Table 86. District-wise Distribution of Income through Sale of Livestock Produce


405. Establishment of milk collection centres in Ajmer and Alwar accounts for the sale of a large volume of milk in both the districts. While Ajmer has government operated milk cooperative societies, collection agents of dairies established at block level collect milk from households in Alwar. Greater preference towards the sale of buffalo milk was observed owing to its higher sale value. Cow milk was usually used for household consumption.

Districts Milk

Eggs Honey

Total Cow Buffalo Goat

Alwar Value of

sale Value of sale

Value of sale

Value of sale

Value of sale

Marginal (Farmers selling)

16,175 (3%)

47,444 (57%)

2,160 (1%)

250 (1%)

1,200 (1%)

66,979

Small (Farmers selling)

0 45,907 (89%)

0 0 559

(1%) 46,465

Medium (Farmers selling)

0 89,333 (100%)

0 0 0 89,333

Large (Farmers selling)

0 35,600 (22%)

0 0 0 35,600

168

406. Farmers in Alwar and Ajmer have hybrid varieties of cattle which also account for the larger production of milk. Milk cooperatives in Ajmer reportedly promoted hybrid cattle through the financing of a single farmer every year. 407. Sale of milk was not quite popular due to unavailability of dairies and was primarily used for household consumption. Ghee was reportedly sold by few households within the village. However, butter milk was distributed among the households for free as a customary practice. 408. Milk was sold by large and medium farmers in Jodhpur though in fewer quantities. Jodhpur faces the problem of acute shortage of fodder which can be arranged by farmers with a larger size of land owing to their higher agriculture produce. For all other farmers, milk would suffice household consumption. 409. Though women were keen on taking up cattle rearing as employment generation activity, the absence of quality fodder and a fixed sale point posed hindrance in realising it. Milk variant like Ghee was reportedly sold by few household within the village at a price of eight hundred rupees per kg. 410. While every household reared hens, selling of eggs as an income generation was practised by very few. While Ajmer did not report selling of eggs, only one percent of total households reported selling of eggs in Alwar. Farmers in Udaipur and Jodhpur also reported fewer proportions of population selling eggs. 411. Honey was sold by quite a few sample households across districts. Highest sale of honey was observed in Ajmer (17%) followed by Udaipur (2%). Alwar and Jodhpur reported just one percent of its population engaged in selling honey. 412. Farmers in Ajmer have engaged in apiculture which substantiates their higher sale of honey. Alwar, on the other hand, has just initiated the process of apiculture. Nevertheless, honey in Udaipur and Jodhpur is procured from the wild and sold in the local markets which fetches low prices. 413. Households in Udaipur derived its income from livestock through the sale of items like meat, skin, wool and honey. A major chunk of income came from the sale of meat and wool. A higher proportion of the population was engaged in selling meat. Ajmer, on the other hand, did not sell meat as a product but sold goats to meat shops. 414. Selling of skin was not observed to quite popular across the districts. None of the districts other than Udaipur reported selling of skin for income generation. Even in Udaipur, only one percent of farmers reported selling of skin for income generation in the last one year. 415. Sale of wool which once used to be a lucrative option of income generation has lost its value on account of falling prices of wool. Jodhpur reported the highest proportion of sale of wool (17%) followed by Ajmer and Udaipur. 416. Wool is sold by quite a few households in the sample villages in Jodhpur. The community mentioned a substantial decline in sale over the years which has culminated in the decline of the value of sheep. 417. Decline in the demand for materials made of wool has been cited as one of the reasons for fall in the prices of wool. An example was cited where a shawl made of pure wool locally known as “pattu” was gifted to the bride and the groom on the day of marriage as a customary practice. But with the introduction of synthetic wool which comes cheaper has taken over the tradition of gifting

169

pattu. Warm clothes and blankets made of synthetic wool have also affected the sale of authentic woollen items translating into reduced price of wool. 418. Table 87 gives district-wise disaggregation of receipts through the sale of animals across farmers of different land size class.

Table 87. District-wise distribution of Income by Sale of Livestock by Land-size class Item Description Bullock Buffalo Cows Sheep Goat Camels Poultry

Alwar

Marginal 16,000 20,765 13,000 4,875 6,938 28,000 3,250

Small 0 30,300 0 0 14,500 0 0

Medium 0 17,700 5,000 0 17,500 0 400

Large 0 37,000 0 0 0 0 0

Ajmer

Marginal 3,000 26,765 15,250 4,000 4,223 0 100

Small 0 23,960 0 0 9,220 0 1,45,000

Medium 35,000 5,100 0 4,000 1,700 0 0

Large 0 20,000 33,500 0 6,000 0 0

Udaipur

Marginal 7,000 4,300 0 2,500 4,621 0 509

Small 0 0 0 0 0 0 0

Medium 0 0 0 0 0 0 0

Large 0 0 0 0 0 0 0

Jodhpur

Marginal 0 3,000 0 2,600 2,445 0 900

Small 0 3,000 0 3,367 2,322 0 0

Medium 0 0 13,000 2,950 3,488 0 0

Large 0 0 0 0 7,833 0 0


419. Sale of buffaloes remains high in districts like Ajmer and Alwar where a substantial chunk of income comes from the sale of milk. While the price fetched for a milch buffalo remained high, the price of buffalo calf was quite low which explains the large variation in price. 420. Udaipur and Jodhpur reported a low sale of buffaloes’ due to a lower number of buffaloes reared by households. Only buffalo calves are sold within the village which fetches a lower price than

milch ones. 421. Cows were usually not sold by households which remained uniform across all districts. While farmers in Udaipur did not report selling of cows, only one percent of farmers in Alwar and three percent in Ajmer reported selling of cows. Only one respondent reported selling of cows in Jodhpur. 422. Goats were reported to be sold in almost all districts. They were usually sold to local traders and at times within the villages. Selling of goats to meat shops was also

Bhawani Singh, one of the farmers in

Shergarh block of Jodhpur mentioned

how the selling of wool has turned into

a situation of distress. A few years back,

a kg of wool would sell for fifty rupees.

Currently wool sells for ten rupees only.

In addition, the farmer has to pay an

amount of twenty rupees for shearing

which makes the selling of wool a deficit

transaction.

170

observed to be a common practice in Ajmer. Income through the sale of goats contributes a major share of income in Jodhpur and Udaipur. Traders from Khedbrahma district of Gujarat visit the villages and purchase goats in Kotra district of Udaipur. Price of the goat is fixed depending on its quality. The same system works for Jodhpur where traders visit the village to buy goats from households. However, distress selling of goats was reported by marginal households in Shergarh district of Jodhpur.

423. Jodhpur accounts for the largest share in the sale of sheep owing to their larger numbers in the district. Sheep rearing has been a traditional practice and selling wool contributes to their income as well. Nevertheless, there has been a steep decline in the prices of sheep after the fall in prices in wool. This can be accounted as the reason for low prices for the sale of sheep evidenced in Jodhpur and works as a deterrent for sheep rearing or selling in other districts. 424. Camels used to fetch a good price to farmers which incentivised their rearing. However, post ban on movement of camels from the state, these have become more of a liability as a result of which people have started abandoning them. The community also shared how camels were used as collateral for availing credit, a practise that has reduced considerably. Only one farmer among the sampled households across all four districts reported the sale of camel.

171

10) Government of Rajasthan’s Approach to Double Farmers Income

425. In 2017, the Government of Rajasthan was among the pioneers to evolve its strategy to double the income of farmers in the state. It is a multipronged approach covering the following broad areas:

i. Facilitation of farmer clusters 426. Cluster approach to farming should be facilitated to support both, backward and forward integration of practices. Farmers can have easy access to agri-inputs at wholesale rates and sell produce at better prices. Such clusters may be commodity-specific for bigger advantage. Such an approach will help small holders think and act like large farmers.

ii. Extension services to farmers to improve awareness on: 427. Optimum crop portfolio including high value crops: Farmers should be encouraged to cultivate higher number of crops including high value crops that cater to their subsistence as well cash needs. Choice of symbiotic crops may also result in better yields. This will also be a precursor to climate resilient agriculture. Since there are 10 agro-climatic zones in the state, with more inter-se variations in soil, water and weather conditions, zonal planning for propagating such portfolios should be undertaken. 428. Increasing cropping intensity. Raising higher number of crops per unit area and cultivation throughout the year is an assured means to year-round income for farmers. Land left fallow for lack of irrigation should be brought under micro irrigation. Cultivating fruits and forest species will not only enhance the sustainability of the agri ecosystem but also supplement farmers' income throughout the year. Agroforestry needs to be incentivized and promoted in a big way, with better marketing facilities for sale of produce.

429. Integrated farming: Practice of livestock farming/animal husbandry on a large scale will ease the dependence on agriculture and buffer farmers' income. It is of critical importance for a state like Rajasthan where vagaries of weather have always played a negative role.

430. Encouraging seed replacement: Use of quality and high yielding varieties or hybrids through both, ensured supply and cost subsidization would facilitate a high seed replacement rate (SRR) thereby improving productivity.

431. Improved post-harvest handling: Instead of traditional methods of drying and storing produce, scientific means of drying and storage should be encouraged. Farm Gate processing would prove to be a critical intervention in this regard. 432. Know-how to use ICT: Farmers should be trained on how to use mobile apps for various information which will develop their decision-making abilities and hedge risks associated with weather and price of commodities. 433. Knowledge of modern markets: Along with modernization and digitization of marketing facilities and various options for sale, skilling of farmers to use such facilities and make the most use of it is essential. State Government can take up this task through NGOs, FPOs, Agricultural Universities, etc.

172

iii. Ensuring optimum use of available resources (agri-inputs and human labour) through: 434. Increasing water use efficiency. Large scale adoption of micro irrigation through awareness, availability and affordability. Public investment in this needs to expand manifold for meaningful difference. 435. Promoting water harvesting and improving water storage capacity. Concerted focus on constructing water harvesting and storage structures (Farm ponds, diggis, water tanks, etc.) for efficient utilization of available water in agriculture.

436. Promoting soil specific fertilizer usage: Increased distribution of soil health cards and supply of subsidized fertilizer based on soil health reports will promote judicious use of resources, reducing costs & improving fertility, productivity and sustainability.

437. Seed: The farmers should get easy access to high yielding varieties of seeds timely and in sufficient amount. Large scale involvement of both private sector and cluster of farmers in this activity will yield rich dividends.

438. Adoption of High-tech Agriculture: Prioritized efforts of the Government are needed to increase the network of poly houses, shade nets, low tunnels, mulching, etc. (protected cultivation) which will help the farmers in raising high value crops under controlled conditions. Exponential growth can be achieved in this through increased public investment.

439. Affordable mechanization: Simple agricultural machineries that improve the efficiency of operations and productivity should be promoted through custom hiring centers.

iv. Near to 100% coverage of crops under crop insurance schemes 440. Farmers should insure against any possible crop loss, during all the cropping seasons. While Kisan Credit Card (KCC) holders find it easy to avail of insurance, the non-KCC farmers should also be motivated and facilitated to go for insurance.

v. Adoption of renewable energy in farm sector 441. Innovations in agriculture machineries to enable use of solar energy is a potential means to bring down cost of using such machineries. It will also promote sustainability. Large scale adoption of currently available tools like solar pumps (for irrigation) and solar dryers (for drying crops) should be encouraged.

vi. Promoting agri-value chain including scientific storage, post-harvest and processing 442. Looking to the necessity and present network/capacity of agri-value chain components, prioritized efforts are warranted in both, public and private sectors.

vii. Increasing income from animal husbandry and dairy 443. More efforts with focused approach need to be invested in improved and technology intensive animal husbandry (breed improvement, vaccination, poultry, fish farming, nutrition management in cattle, etc.). Improvement is also desired in the value chain of dairy products like milk, egg and meat.

viii. Agriculture Marketing 444. The present network of mandi yards in the State is insufficient and needs to be strengthened through establishing new mandi yards/sub yards for enabling the farmers to get easy access for sale of their produce. Agriculture marketing needs to be made more technology-intensive.

173

ix. Credit 445. Easy availability of institutional agricultural credit in sufficient amount is still a problem which needs to be addressed with concerted efforts, including both NABARD and commercial banks. Both crop loans and long-term capital investment in agriculture need to be streamlined so that farmer can timely meet out his requirement for agricultural operations.

x. Increased access to facilities and schemes of GoR 446. Lessee/tenant farmers, who constitute a good percentage of farming community, should also be the beneficiaries of various initiatives by the government. This is possible through amendments in criteria for selection of beneficiaries. The statuary/legal validation of contract farming and recognition of rights of lessee/tenants would be a must for this.

174

11) A Strategy for Doubling Farmers’ Income

447. A strategy for doubling of farmer’s income needs to be multipronged covering a range of options for the farm household. For a state like Rajasthan, any intervention in the agricultural sector must be aligned with rainfed agriculture. This must include three significant paradigm shifts: (a) need to enhance and make more effective and sustainable use of public investment in rainfed agriculture, (b) need to build capacities for location-specific, decentralized governance and knowledge systems for rainfed agriculture, and (c) need to shift from conventional “production per hectare” thinking as the sole measure of performance to an approach that can integrate livelihoods (agriculture and rural non-farm), availability and access to food, ecosystem and human health. 448. For working on this paradigm, it is desirable to catalyse convergence of key government programmes relevant for rainfed agriculture such as MGNREGA, NRLM, MKSP, and RKVY that support natural resource management, local governance capacities, location specific technological and market development in rainfed agriculture. Some of the elements of sustainable rainfed agriculture have been around and also found a place in the planning and programming exercises. However, there is a need to embed these elements of this paradigm into a better configured and operationalized, especially at optimally decentralized administrative and bio-physical levels (block-level or agro-ecological sub-regions). For this operationalizing, conceptualization and measurement of variables like productivity, efficiency, integration and sustainability is required. Water is the key scarce resource under rainfed condition and among all Indian states, it is the foremost limiting in the case of Rajasthan. 449. In addition to water, soils are another critical natural resource that need to be healthy in order to be able to support crop production. Analysis shows that around 23.95 per cent (2011-13) and 23.64 per cent (2003-05) of desertification/ land degradation with respect to total gross area of the country is contributed by Rajasthan, Maharashtra, Gujarat, Jammu & Kashmir, Karnataka, Jharkhand, Odisha, Madhya Pradesh (MP) and Telangana in descending order. All other remaining states are contributing less than 1 per cent (individually) to desertification/ land degradation. Raising crop production and productivity under this circumstance in Rajasthan, the highest contributor to land degradation and desertification, is a huge challenge. 450. Overuse of fertilisers, especially nitrogenous ones, has a degrading effect on the environment. Part of applied fertiliser N is lost as NH3, N2, and NOx gases, which adversely affect the environment36. NH3 after oxidation to NO3 also contributes to soil acidity, while other NOx-es are involved in depletion of the stratospheric ozone layer. Part of applied fertiliser N leaches down as NO3 and contaminates the groundwater resources. Various studies have found that NO3 contamination in groundwater has become a matter for concern in many states. For example, one of the hazardous side effects of NO3 contamination in groundwater is methemoglobinemia or the blue baby syndrome. A study in Rajasthan revealed that there is severe methemoglobinemia in all age groups of the population, especially in the less than one-year age group37. 451. A key enabler to accessing entitlements such as subsidised institutional credit and crop insurance is the possession of clear land titles. The field visit to Rajasthan threw up a very surprising set of observation on a very low level of penetration of both. Most respondents in the primary survey

36 Prasad, R. (2009): ‘Efficient fertiliser use: The key to food security and better environment’ in Journal of

Tropical Agriculture, Volume 47(1-2) 37 Gupta, S.K., R.C. Gupta., A.K. Seth, A.B. Gupta, J.K. Bhasin, and A. Gupta (2000): Methemoglobinemia in

areas with high nitrate concentration in drinking water in National Medical Journal of India, 13(2): 58–61

175

pointed out not possessing clear land titles as the reason. This highlights the slow pace of progress made under the Digital India Land Records Modernization Programme (DI-LRMP). 452. The share of livestock in agricultural sector GDP growth in India has been increasing faster than the crop sector in the past decade because of rising demand for livestock products propelled by income and population growth and urbanization. Nearly 90 percent of livestock production in India is by more than 100 million smallholder farmers, women supply more than 75 percent of labour; and that ownership of livestock is more equitable than land, highlights the major role livestock play in poverty reduction and food and nutrition security directly through increased consumption and indirectly through increased income and employment generation. Demand growth trend is expected to continue especially for dairy which currently accounts for two third of livestock sector output, but supply is not keeping pace with demand. The productivity of the predominantly smallholder production system is low and while in the case of dairy higher producing crossbreds and buffalo are replacing lower production non-descript cattle, national yield has been increasing rather slowly because of poor and ineffective breeding, animal health and extension services and inadequate and poor-quality feed supply. This low productivity comes at the expense of the environment and cannot be sustained. The trend is consistent for Rajasthan as well. 453. Considerable, economically exploitable, productivity gaps in the livestock sector still remain in much of the country. Yield variations across states and agro-ecological regions suggest considerable potential for enhancing productivity by investing in technology and services - feeding, breeding, animal health and extension. Inadequate feed supply and high feed cost is a major constraint for economic improvement of productivity. So, investment in research as well as accessing knowledge from global experiences are of critical importance. 454. Less than 20 percent of milk, the main product, and less than 5 percent of meat is currently handled by the formal processing sector. These shares are expected to rise driven by private sector investment capitalizing on escalating product demand. Indeed, providing the enabling environment to attract the private sector is important for increasing productivity and growth of the sector. The transformation of the efficiency of the marketing system to link small scale producers and distant consumers at reduced marketing and transaction costs will help keep retail prices low to enhance demand especially among lower income consumers and serve as a trigger for increased growth. 455. Investment in the sector is not only inadequate but the policy environment has not been supportive in many cases to afford cost-effective delivery of services and support. Rajasthan needs to build a strong foundation to support the sector including skilled human resources to deliver across the continuum from laboratory to farm to market. All stakeholders have a role to play and the state government needs to foster the partnerships, both nationally and internationally, that will support a vibrant and productive livestock industry. 456. In the wake of continued export slowdown and fast changing global market scenario, the Government of India has responded with a series of initiatives. One of the key policy measures that has been initiated includes calling for greater involvement of States in pushing exports. As of now, under the federal architecture of India’s governance, foreign trade related matters are handled by the Central Government whereas the actual production of goods and services happens in States. There is less intervention from the State Governments in terms of overall foreign trade policy formation. Higher participation of the State Governments is required for trade facilitation, reform of standards regime and more value addition in the production cycle. Involvement of States is critical to bridge the gap between the capacity of the domestic industry and the demand emanating from the international market.

176

457. Realizing the need for an active participation of State Government in overall trade development of the country, Ministry of Commerce and Industry, GoI constituted a platform to identify and address trade and infrastructure gaps which adversely affect India’s exports. All Indian States together with the relevant ministries and business associations are the members of this Council for Trade Development and Promotion. Through this platform, the Centre and States jointly work to synergize efforts and take appropriate steps to boost India’s exports. 458. Doubling farmer’s income in nominal terms would be rather simple as has been observed in past based on NSSO data. The challenge is to double it in real terms. As per our assessment, this is unlikely. The strategy therefore focusses on enhancing incomes of farming households. The interventions that are required on reforming policies and improving governance in the different subsectors of the rural economy are summarised below. Details on these interventions are presented in Annex I.

a) Crop Sector

Water 459. Water is a scarce resource in Rajasthan and is the most limiting factor in farming. The area cropped during the Rabi season is significantly lower than that in Kharif which is a clear indicator of the prevailing water stress. The potential area that can be irrigated using surface flows has been achieved which is pushing larger numbers of farmers to pump groundwater and thereby running the aquifers dry. 460. Improving the efficiency of water use has been taken up in the state by promoting micro irrigation systems (drips and sprinklers). However, the problem is with the abysmally low penetration (9.1%) where barely 8.26 lakh hectares cumulatively was brought under MI by March 2015. With the annual target for 2017-18 fixed at 50,260 hectares, it will take over 116 years to reach the full potential of MI (estimated at 56.58 lakh hectares) in Rajasthan. 461. The low penetration of MI in Rajasthan is not on account of slow implementation under PMKSY. Instead, it is the allocation by the Centre which is inadequate to meet the huge demand in the state. For the year 2016-17, Rs. 120 crores were allocated to the state which is barely 8 percent of the total allocation across the country for MI. In comparison, Andhra Pradesh and Gujarat (Rs. 220 crores each), Karnataka (130), Madhya Pradesh (140), Maharashtra (250) were allocated higher amounts. Not only is the problem of scarcity of water most acute in Rajasthan but it also grows a diverse basket of crops as compared to the other states. 462. If the full potential of MI is to be achieved, the Centre’s total allocation to Rajasthan under PMKSY needs to be a little over Rs. 13,000 crores. If this target is to be achieved in a five-year time-span, the annual allocation to Rajasthan needs to be raised from the current Rs. 120 crores to Rs. 2,700 crores. This is the level of supply-side investment that the centre needs to make if the stated aim of “per crop more drop” is to be achieved. This also has to be supplemented by easy access to institutional credit as the equipment require higher investments. 463. If the performance of MI is to be assessed on the basis of growth in penetration, the strongest performance was seen under the National Mission on Micro Irrigation (NMMI). The performance slid downwards once this Mission was subsumed under the National Mission for Sustainable Agriculture (NMSA) and the same level of low performance persists under PMKSY. On the policy front, it might be prudent to delink MI from PMKSY and deploy an independent Mission as was the case during NMMI.

177

464. There is need for moving away from area-specific interventions for improving water efficiency. What might pay a rich dividend is to identify water guzzling value chains and then work backwards to find solutions to improve efficiency. The demand for water can be most effectively managed by promoting a change in the cropping pattern in favor of less water-intensive crops. Wheat, rapeseed-mustard, and chickpea are widely grown rabi crops and together consume 58 percent of the state’s blue water. 465. If the area under wheat and rapeseed-mustard is reduced and instead chickpea is cultivated, it results in enormous water saving. Given the current low yield rate of chickpea, investing in research and development is required. If the productivity is enhanced to neighbouring Madhya Pradesh’s levels, it results in increased profits through producing chickpea. If this is followed up by price incentives in the form of enhanced MSP and procurement, this will translate to huge gains in income to Rajasthani farmers. The country will also make considerable savings through reduced import of pulses. The details of this are presented in Annex I. Millets 466. Millets are another dryland crop that are suited to the climatic conditions of Rajasthan, require little irrigation, and are traditionally consumed by rural households. Perusal of secondary data indicates that area cultivated under millets (Jowar, Bajra and small millets) is stable over time. Jowar and Bajra are the main millets grown during Kharif. Of all food grains, over 70 percent of the area cultivated during Kharif 2015-16 was under Bajra which in turn contributed to 65 percent of the total food grains produced in the state. Jowar was grown on 11 percent of the area under food grains and added 7.3 percent to the tally of total food grains produced in Kharif. That 81 percent of area and 72 percent of food grain production comprised these two crops stands testimony to their importance. 467. However, when it comes to buying jowar and bajra for consumption, the proportion is weighed heavily against the two commodities. An analysis of the NSSO 68th Round data reveals that consumers prefer buying wheat/ atta from PDS and the markets more than jowar and bajra (Figure 39). This is despite the latter two staples being very widely cultivated across the state and comprising bulk of the production. This obviously is due to the fact that prices for these commodities are not attractive for farmers to produce for marketing.

Figure 39. Proportion of Households Buying Food Grains in Rajasthan

Source: Authors computation using NSSO 68 Round Survey (Key Indicators of Household Consumer

Expenditure in India, 2011-12)

178

468. The above is borne out by the prices received by millets and these do not compare favourably with wheat (Table 88), which is a water guzzling crop and its cost of cultivation is higher as compared to millets. The reason for higher wheat prices is on account of a steady growth in MSP and procurement by the public sector. While MSP is announced for jowar and bajra, these are not procured. This keeps their prices depressed as compared to wheat as can be seen from Table 88.

Table 88. Average Prices (Rs. per Quintal)

Wheat Jowar Bajra

2010-11 1184 1358 864

2011-12 1138 1231 906

2012-13 1487 1428 1273

2013-14 1527 1458 1246

2014-15 1507 1583 1205

2015-16 1750 1473 1324

Source: Rajasthan Agricultural Statistics at a Glance 2015-16 469. The comparative advantage of Bajra over wheat in PDS is undeniable. When compared to wheat, it’s cost of cultivation and water requirements are lower. Enhancing the MSP of Bajra can pay rich dividend to the state. 470. In order to promote the production of Bajra, a two-pronged strategy is required. Firstly, the yield levels need to be enhanced. The average yield during 2011-12 and 2015-16 in Rajasthan stands at 931 kg/ha. In comparison, the yield in neighbouring Madhya Pradesh is 1985 kg/ha. There is ample scope of increasing productivity in Rajasthan and this can be achieved in a short period of time by earning from Madhya Pradesh. Secondly, Rajasthan can take lessons from the experiences of Karnataka and Odisha for introducing millets in the PDS. 471. The Government of Karnataka initiated procurement of millets from farmers and distribution (Ragi in south Karnataka and Jowar in north Karnataka) through PDS in 2013-14. The scheme “Anna bhagyadinda Krishi bhagya” was started with the intention that by procuring these millets from farmers, substantial cash would flow to rural households while PDS cardholders would get access to nutritious food grains at low prices. 472. Procurement commenced in the year 2013-14 but there was limited success. During 2014-15, the GoK tasked the Karnataka Agricultural Price Commission (KAPRICOM) to study the issue and suggest remedial measures to increase procurement of millets. KAPRICOM found that over the last two decades, area under these crops were steadily declining and profitability vis-à-vis other competing crops had fallen sharply, leading to grower apathy towards these crops. 473. To remedy the situation, the key actions recommended by KAPRICOM were:

1. Increase minimum support price (MSP) to ragi and jowar to provide at least 20-30 percent mark-up over cost of cultivation as estimated by KAPRICOM

2. Reduce incentives being given to maize and cotton, which were the chief competitors to ragi and jowar

3. Aggressively promote millets as an appropriate crop to adapt to changing climatic situation in the state

4. Invest in carrying out research to produce new varieties that will provide high yields, thus making it attractive to farmers to grow the crops.

179

474. Accordingly, the GoK increased the MSP from Rs. 1500/quintal for Ragi and Rs. 1800/quintal for Jowar in 2013-14 to Rs. 2000/qtl and Rs. 2300/qtl for Ragi and Jowar respectively in 2014-15. Procurement of Ragi increased to 1.36 lakh MT and 6839 MT for Jowar in 2014-15. Encouraged by this, the MSP for Ragi was further enhanced in 2015-16 to Rs. 2250/qtl and procurement increased to 1.5 lakh MT. However, following the failure of Jowar crop, there was no procurement of jowar in 2015-16. 475. The impact on farmer’s incomes was significant. Wholesale price which was languishing at Rs. 800-1200/qtl had risen sharply to Rs.1800/qtl in villages in response to an MSP of Rs. 2250/qtl. 476. Odisha begun working on a similar initiative in November 2016 by launching the “Special Programme for Millets in Tribal Areas of Odisha”. The objectives of this initiative are:

1. Increasing household consumption of millets by 25 percent to enhance household nutrition security and to create demand for millets with focus on women and children.

2. Promoting millet processing enterprises at Gram Panchayat and block level to ease processing at household and for value addition markets

3. Improving productivity of millet crop systems and make them profitable 4. Developing millet enterprises and establishing market linkages to rural/ urban markets with

focus on women entrepreneurs 5. Inclusion of millets in state nutrition programmes and PDS.

477. Given that millet is a naturally nutrient dense agricultural produce, making it available through the PDS in Rajasthan will enable poor and vulnerable populations access the cereal and could help address the problem of hidden hunger. Effective implementation and delivery of millets under the PDS can have far reaching implications for addressing the problem of malnutrition. Even though the NFSA provided for distributing millets through the PDS, only the state of Karnataka38 seems to have introduced this. Chhattisgarh has pioneered a model of local procurement and local distribution of pulses, also a nutritionally dense food, through the PDS while Tamil Nadu has been distributing pulses through the PDS for the last decade; but Karnataka is the first in millets. 478. The bottom line is that without attention to children’s health and nutrition, India will not realise its demographic dividend. Studies have shown that children who are undernourished often do not achieve their full potential height for age (called stunting) and weight. They also do not achieve their full cognitive potential. Children cannot achieve their full height due to restricted nutrient supply for growth. This restricted supply also leads to functional damage to the brain, probably irreversibly. According to the National Family Health Survey-4, more than a third of Indian children below the age of five are stunted. This is worse than many sub-Saharan countries. India accounts for more than three of every 10 stunted children globally. This is where millets can help to meet the nutrition deficit. 479. There are 2.03 crore ration card holders in the state of Rajasthan. If the state government decides to supply five kilograms of Bajra to every ration card holder, it would require to procure around 1200 thousand tonnes, which is around 30 percent of what is produced in the state. Boosting the MSP to the levels of wheat will encourage farmers to produce more bajra and a guaranteed procurement at MSP will contribute to enhanced incomes of farm households. The impact on nutrition will also be significant. Adopting this strategy is a win-win for all.

38 Karnataka has been distributing finger millet (ragi) in south Karnataka and sorghum (jowar) in north Karnataka through PDS since 2013-14

180

Soils 480. Increasing and sustaining productivity requires soils to be healthy. Sustainable crop, grazing and forest systems contribute to soil health. These principles are gaining importance in an increasingly variable climate regime. As noted above, there will be an increasing pressure on land to produce more food in the coming days. There also will be competing demand for land. 481. There are already proven soil management practices that can help farmers adapt to the likely adverse effects of increasing weather variability and climate change39. These practices also often reduce GHG emissions from agriculture40 and build resilience in farming systems. Widespread adoption of these practices has the potential to make major contributions to the achievement of national food security and development goals. There is a need to assess and provide incentives for the adoption of systems with the greatest production, mitigation and adaptation potential. Annex I provides a detailed roadmap for this in Rajasthan.

b) Livestock Sector

482. Rajasthan is the country’s second largest producer of milk (more than 11 percent of total production), but the institutions linking dairy farmers to markets remain weak. In 2014–15, the state had about 14,600 village dairy cooperatives, which procured about 9.2 lakh tons of milk from 730,000 farmer-members. These cooperatives accounted for 5.5 percent of milk produced in the state, compared to the national average of 10 percent from dairy cooperatives.41 The state’s cooperatives have a total of 18 milk plants, with a total processing capacity of 24 lakh liters per day. There are also 20 privately owned plants, with a processing capacity of 34 lakh liters per day.42 Assuming that cooperative and private processors procure milk in proportion to their processing capacity, the private sector procured about 13 lakh tons of milk in 2014–15. Together, the organized sector procured 13 percent of the total milk produced. 483. Markets for small ruminants are underdeveloped. The state has only two registered slaughterhouses, which indicates that most goats and sheep are traded live and slaughtered outside the state depriving farmers of the benefits of value addition. Value chains for small ruminants are yet to develop. The dispersion of smallholder producers makes aggregation a challenge, and in a market dominated by intermediaries at the low end of a long value chain, and the farmers are unlikely to secure a significant share of the value of the final product delivered to consumers. 484. Although animal health infrastructure has improved, the breeding infrastructure in the state is poor with only two frozen semen centres and 4500 AI centres. The extension system for delivery of livestock services is poor. The animal health services concentrate on curative treatment rather prophylactic control. 485. In the livestock sector, the development and provision of animal health and veterinary services accounted for more than two-thirds of total spending on animal husbandry and dairy

39 FAO (2013) Soils and their Management for Climate Smart Agriculture. In Climate Smart Agriculture Source Book. Rome 2013 40 While other GHGs may be affected, most agricultural land management activities target only one of the three major gases: CO2, by sequestering carbon in the soil; N2O, by reducing emissions; and methane (CH4) by reducing emissions or increasing their uptake in the system 41 National Dairy Development Board (2015). 42 GoI (2014).

181

development. The state allocated hardly any resources for fodder development, even though fodder is the most important input in livestock production. 486. Rajasthan is already making investment to consolidate and scale up its dairy sector, though the allocation is not substantial. In addition, the large arid and semi-arid regions of the state are well-suited for rearing small ruminants (goat and sheep), offering a major opportunity for employment and growth by tapping into the rapidly growing demand for meat in India. After poultry, mutton and goat meat are projected to have the fastest growth in market demand among all food commodities over the next 30 years. Rajasthan is uniquely placed to exploit this growth opportunity through strategic investments in improved breeds, feed and fodder, animal health, food safety and traceability systems, and promoting private investments in modern value-chains and processing (e.g., for meat, wool). 487. On the supply side in dairying, the potential for yield growth is substantial: two thirds of the cowherd are indigenous breeds whose yields are less than half those of cross-bred animals; and yields of all animals could be significantly increased through better nutrition and healthcare. Goat and camel milk have several nutraceutical properties. With large population of goats and camels Rajasthan has an advantage over others in production of milk of these species. The growing preference for natural nutraceuticals is an opportunity to exploit the underutilized potential of these animals by linking farmers to pharmaceutical industry. This is a value chain which remains largely unexploited. 488. Detailed tasks that can be undertaken in the livestock sector is presented in Annex I.

c) Agri-business, Value Chains and Marketing Reforms

489. The major strength of Rajasthan’s food processing industry lies in the following: 1. Nutri-cereals- Pearl millet (Bajra) and other small millets 2. Pulses- Green gram (Moong), Chick pea, Moth beans 3. Seed Spices- Cumin, Coriander, Fenugreek, Ajwain and Fennel 4. Medicinal crops- Psyllium (Isabgol), Indian Ginseng (Ashwagandha), Satawari, Aloe Vera,

Senna (Sonamukhi), Indian Gooseberry 5. Oilseeds- Mustard, Soybean, Groundnut 6. Commercial crop- Cluster bean (Guar) 7. Livestock: Drought hardy milch breeds (Rathi, Gir, Sahiwal and Tharparkar; the population of

the latter has reduced drastically) 8. Fruits: Mandarin and Kinnow 9. Vegetables: Tomato, green chilies, peas, onion, potato, cauliflower, carrot, cabbage, garlic

490. There are four major challenges in the agro and food products sector in Rajasthan which impede the formation of effective value chains for the above commodities for exports.

a) Inefficient Infrastructure: Inadequate cold storage network in Rajasthan renders the agro and food products unfit for exports.

b) Contamination of Products: Lack of awareness amongst farmers and labourers engaged in crop plucking activities and transporters leads to contamination of food items and makes them unfit for exports.

c) Lack of Awareness among Farmers: There is lack of awareness regarding benefits of rotational cropping. There is also lack of awareness pertaining to organic products which fetch higher value in export market. The organic produce of the state is limited and farmers are mixing it with the normal produce to increase quantity. As a result, the organic produce is being sold at normal prices. Farmers also need to be informed about various export market drivers.

d) Non-Tariff Barriers to trade: NTBs significantly impact the agro and food sector. This still

remains one of the most protected sectors for majority of the trading nations.

182

491. Rajasthan has limited presence in the processed food segment, which presents a case for capacity building and horizontal diversification in the higher value-added areas of ready to eat food, processed food, health and wellness food products and organic food products, all of which have a huge export potential. 492. A substantial opportunity also exists for vertical diversification of exports. The bigger and dynamic markets of the EU, Canada, South Korea, Australia and New Zealand can be further leveraged by exporters from the State for vertical diversification of agro and agro-based exports. These approaches to be able to increase exports of agro an agro-based produce from Rajasthan have been discussed in Annex I.

493. With respect to marketing43, the following strategic reforms need to be carried out at the national and the state’s levels:

a) For effective implementation of MSP policy, (a) MSP purchases should be delinked from

procurement targets, (b) advance arrangements should be made in terms of adequate

number of purchase centres, handling logistics and timely payment to the farmers/ sellers, (c)

purchase operations should continue till the sellers offer their produce at MSP, (d) there

should be no quantity cap on the seller, (e) with a view to reaching the benefits of MSP even

to small farmers of remote areas, large farmers working as aggregators or village assembling

traders should be encouraged to offer the produce at MSP purchase centres, and (f) it should

be enjoined on state governments to be proactive in MSP policy implementation.

b) For effective implementation of Market Intervention Scheme (MIS), there should be a well-

articulated institutional mechanism both at the central and state levels. Specifically, (a) the

Centre (MoAFW) should specify mandated commodities with scope for state and year-specific

additional commodities, (b) there should be an exclusive and dedicated nodal officer and cell

at the Centre for approval, and (c) a proactive stance is needed at the Centre to guide the

state nodal agencies to come up with timely proposals, process them speedily and revert to

the states for timely interventions.

c) State and national-level agricultural outlooks on prices, supply and demand for agri-

commodities is a huge gap in planning. These outlooks need to be generated for both short

and long periods.

d) Gautam et al (2017) rightly point out that the current policies to promote agro-processing in

Rajasthan, namely the Agri Processing & Agri Marketing Policy and the state’s Rajasthan State

Industrial Promotion Policy, emphasize attracting large-scale investors but with a dual

requirement. They require both a minimum scale of investment and a minimum number of

employees: the Agro-Processing and Agri-Marketing Promotion Policy of 2015 states that

“Enterprises with investment of Rs. 100 crores or more, or providing employment to at least

250 persons will now be eligible for availing customized package of incentives & concessions

under RIPS 2014.” Yet, to succeed individual processing plants have become increasingly

capital-intensive. The labour required in a modern, competitive plant is much more skilled,

with little or no manual work. The requirements for the number of jobs created thus may be

an impediment for a high-end processor, which may in fact eliminate much greater job

creation prospects along the value chains that feed into the large processing plant. This is

because, for these large operations to be viable, they need to depend on reliable and efficient

value chains. This can only come through a cluster of small- and medium-enterprises that add

value at intermediate stages (where possible) which are likely to be more labour-intensive and

43 This section benefitted from a detailed discussion with noted agricultural economist Dr. SS Acharya.

183

thus have the potential to create more jobs than a single large processor might. The

implication of this is that the state’s policies need to be geared towards attracting both large

investors as well as large numbers of smaller entrepreneurs with facilities along the value

chains and across the different production areas.

d) Improving Access to Services

494. Institutional credit is a very critical requirement of farmers to buy inputs for farming. The current trend indicates that the numbers of big loans is going up while that to small farmers is not. Also, the numbers of short-term agricultural loans are going up while long-term loans have reduced drastically. This indicates that investments in fixed capital is reducing. Indirect finance is rising since it was redefined to include commercial, export oriented and capital-intensive farming. 495. Credit delivery needs redesigning. It ought to offer flexible and easily accessible products. Here, agriculture credit can take lessons from microfinance where the borrowing is more frequent and repayment in small instalments. Credit is linked to crop insurance and this can be expanded to include other composite products such as health and life insurance to promote financial inclusion. 496. As in the case of microfinance, the process of accessing credit needs to be simplified. Doorstep services to farmers by adopting the banking correspondent model can help expand the coverage of credit. One obvious area could be for government to review its policy of setting interest rate caps on rural lending rates and floors on the deposit rates. This has the opposite effect of what is intended—poor borrowers are cut off from access and end up paying higher interest rates to informal lenders. 497. In addition to credit, crop insurance is another product that enables farmers to hedge their risks. Prior to the rolling out of the Pradhan Mantri Fasal Bima Yojana (PMFBY), NABARD had detailed out a number of issues that may impede the performance of the scheme. Some of these were not taken on board and the spread of crop insurance is patchy and its coverage uneven. 498. Both access to credit and coverage under crop insurance require clear land titles/ lease deeds. A major observation in the field was the absence of updated records/ documents on land ownership/ lease-holding. As a result, the sample survey results indicate a very low prevalence of both institutional credit and insurance coverage. Comprehensive steps required for a better implementation of the Digital India Land Records Modernization Programme are outlined in Annex I.

e) Enhancing off-farm income

499. As noted earlier, while the share of agriculture in SDP growth has declined rapidly over time, the agricultural workforce has shown only a marginal decline of 9 percent between 1950 and 2011. This could be ascribed to two factors: (a) inadequate numbers of jobs being generated in the formal/ informal sectors, and (b) lack of skills to move into secondary and tertiary sectors of the economy. 500. Hardly any growth in employment in the organised sector has taken place since the year 2010. Given this, the importance of the MSME sector in generating employment for unskilled, semi-skilled and skilled workforce gains importance to absorb the rural workforce. This however requires upgradation of skills of workers. It needs to be underlined that there is a chronic problem of unemployment in Rajasthan and the state ranks first in terms of number of unemployed workforce. There have been various efforts towards employment generation but their impact has not been substantial. A detailed outline on the steps required to enhance skills of rural households for their absorption in the secondary and tertiary sectors of the economy is presented in Annex I.

184

12) Collaborations and Partnerships

501. No single entity can work in isolation to meet the target of doubling farmers’ income. Partnerships and collaborations are an absolute necessity and there already are numerous such practices on ground. These however need to be converged at the state, districts, blocks and village’s levels for improving effectiveness. 502. As may be noted from prior sections, the key enablers of income enhancement require building an enabling environment. These are presented in Figure 40. At the grassroots, Gram Panchayats (GP) constitute the most appropriate centres for dovetailing developmental and welfare programmes. UN-FAO’s proven approach of working on learning through sharing via the Farmer’s Field School approach is worth exploring. The GP’s ought to be empowered and farmers need to be mobilised under the Farmer Field Schools.

503. Farmer Field School (FFS) is an approach based on people-centred learning. Participatory methods to create an environment conducive to learning: the participants can exchange knowledge and experience in a risk-free setting. Practical field exercises using direct observation, discussion and decision making encourage learning-by-doing. The field is the space where local knowledge and

Figure 40. Enablers for Enhancing Income of Farm Households

INCOME ENHANCEMENT ENABLERS

DELIVERY OF

PUBLIC SERVICES

FINANCE

MARKET

LINKAGES

GRAM

PANCHAYATS

(FFS)

MANPOWER &

HUMAN

RESOURCES

KNOWLEDGE

MATERIAL

ACCESS TO

ENTITLEMENTS

INNOVATIONS

185

outside scientific insights are tested, validated and integrated, in the context of local ecosystem and socio-economic settings. 504. Community-based problem analysis is the entry point for a FFS group to develop a location specific curriculum. A growing range of technical topics are being addressed through FFS: soil, crop and water management, seeds multiplication and varietal testing, IPM, agro-pastoralism, aquaculture, agroforestry, nutrition, value chain, and link to markets, etc. This is a proven approach that has also been tested in India yet the upscaling is lacking. 505. A Farmer Field School offers space for hands-on group learning, enhancing skills for critical analysis and improved decision making by local people. FFS activities are field based, include experimentation to solve problems, reflecting a specific local context. Participants learn how to improve skills through observing, analysing and trying out new ideas on their own fields, contributing to improved production and livelihoods. The FFS process enhances individual, household and community empowerment and cohesion. This is an approach that is largely lacking in India. Partnering with FAO and the numerous NGOs in the state would contribute to this process. 506. FFS have proved to strengthen not only technical skills and decision-making capacities of farmers, but also to significantly influence the community as well as intra-household dynamics. FFS strengthen community relations and the capacity of listening to others’ opinion, to formulate and express personal points of view and to find together a common solution through the process of communication and learning. 507. Once mobilisation into FFS is successful, there is a need for converging resources, manpower and efforts at the GP level. Coverage under various welfare schemes have to be dovetailed – among many, these must include old age pension, widow pension, public distribution system, crop and livestock insurance, girl-child benefits, ICDS, etc. 508. Converging services at the GP level is the biggest challenge. The plethora of collaborators that need to play a role are presented in Figure 41. 509. For knowledge and innovations, the key players would be the agricultural universities, ICAR institutions, state and central extension agencies, NGOs and the private sector. A number of NGOs have over the years developed approaches that converge on models for enhancing farmers’ incomes. These need to be scaled up. Some noted ones are: Sewa Mandir, Tarun Bharat Sangh, Jal Bhagirath Foundation, Social Work Research Centre, Aastha, Ibtada, Grameen Evam Samajik Vikas Sanstha, Krishak Vikas Sansthan, Jagran Jan Vikas Samiti, Krishi Anushandhan Evam Gramin Vikas Sansthan, Gram Vikas Navyuvak Mandal Laporiya, Society to Uplift Rural Economy. The State Government sponsored Aravali is the best suited for network approaches in the districts that requires collaborations between NGOs, GOs, research organisations and the private sector. In addition to providing implementation support and hand-holding of the FFS’, NGOs also are a major knowledge centres. 510. Rajasthan has five agricultural universities and one veterinary university located in Udaipur, Bikaner, Jobner, Kota and Jodhpur. CAZRI (Jodhpur), CIAH (Bikaner), CSWRI (Avikanagar) are the three major ICAR Institutions in the state. ICAR also has the Directorate of Rapeseed & Mustard Research in Bharatpur and two National Research Centres on Camel (Bikaner) and Seed Spices (Ajmer). The Indian Council of Forestry Research and Education (ICFRE) has the Arid Forest Research Institute in Jodhpur. These along with the 42 KVKs, ATMAs in every district, and the State Institute of Agriculture

186

Management ought to be the key knowledge and extension partners. Major agro-based private sector will play an important role in both supply and demand growth.

511. The private sector needs to play a larger role than what it is presently. The sector is profit oriented, which is crucial for its survival, and a part of their earning is paid to the government in the form of taxes. The public sector on the other hand has social responsibilities and must invest in all kinds of infrastructure to support overall development for the benefit of all the citizens to ensure peace and prosperity of the society in a holistic sense. Many of the public-sector activities may not be profitable in the short-term but are essential for long-term stability of the country. 512. The private sector is known to have better marketing skills, efficient product delivery system, quality service providing capability, and better up-scaling technologies. The public sector has extensive infrastructure, institutions of higher learning that can generate knowledge through basic research,

KNOWLEDGE & INNOVATIONS

SAUs, ICAR, NGOs, KVKs & ATMAs, State

Ag. Department, Private Sector

MATERIAL

Public and Private sector input

producers (seeds, fertilisers, pesticides,

farm machinery, etc.)

FINANCE

Cooperative and Commercial Banks,

Joint Liability Groups, PACS,

Bi/multilateral lending agencies (World

Bank, JICA, IFAD, IFC)

MANPOWER & HUMAN

RESOURCE

State and Central governments (Rural

Development, Tribal Welfare &

Development, Water Resources, RKVY,

RIDF, Special Projects, MGNREGA,

MKSP, Cooperatives, FPOs, NGOs, SHGs,

JLGs, CIGs

MARKET LINKAGES

FCI, NAFED, RAJFED, Milk Cooperatives,

APMCs, contract farming, direct

procurement by private sector, farmer-

consumer markets, e-retail, exports,

NIAM

ACCESS TO ENTITLEMENTS &

PUBLIC SERVICES

Credit, insurance (life, health, crop),

pensions, scholarships, DBT, PDS,

subsidies

Figure 41. Meeting the Challenges

187

and it has a vast pool of both teachers and trained human resource. Also, the public sector has the capacity of solving those problems that do not have immediate rewards in the form of monetary profits. 513. Early examples of cooperation between the private and public sectors include that of MAHYCO Research Foundation (MRF) (now Barwale Foundation, a non-profit organization), which in 1986, supported ICAR with a contribution of one crore of rupees each year for three years for deploying money for hybrid rice development work at a time when India was far behind in hybrid rice development. Likewise, there was a collaboration between Mahyco the Seed Company and the ICRISAT, which resulted in breeding a pigeon pea hybrid variety. 514. Though interaction of private sector and public sector is not new, yet the current levels are relatively low. The private sector has so far found business opportunities in the seeds sector, field trials, fertilizer, biofertilizer, biocontrol and micro-propagation industries, pesticides, germplasm evaluation, collaborative technology development and R&D (hybrid rice, for instance). Areas such as crop biotechnology, biosafety studies, germplasm/agronomic evaluation, animal feeding studies, ecological studies are other areas of engagement. 515. The private sector is also playing an important role in information and communication technologies for agriculture, contract farming, agribusiness franchising and marketing, supermarkets and supply chains, cold chains, irrigation and micro-irrigation, agro-export zones, organic crop production, floriculture, composting and compost manufacture and equipment, farm mechanisation, processing and value addition. 516. Technology, infrastructure, markets and finance are four factors which play a decisive role in growth and sustainability of any production activity. In case of food grains, technologies comprising high-yielding seeds, use of chemical inputs and irrigation have boosted production. Healthy plant material through modern nurseries and modern cultural practices have helped production in horticulture and plantation areas. 517. In the case of R&D, for instance, private benefits are usually company gains that stem from cost reduction and improved quality and increased quantity of sales’ products. They also relate to strategic goals such as market penetration, improved competitiveness, exploration of new markets or market power. In the context of Indian agriculture, there have been fruitful interactions between the public-funded institutions and private sector in several areas such as seed production, farm implements and machinery, disease diagnostics and vaccines, value-addition and post-harvest processing in cereals, pulses, oilseeds, fruits and vegetables, milk, meat and fish, product testing and evaluation. While the public-funded organizations have significant research results and the ability to absorb uncertainties of payoffs, the private sector seems to have an edge in factoring clients into design of technologies and diffusion processes. 518. However, private sector participation tends to be limited to profitable crops and enterprises undertaken by resource rich farmers in well-endowed regions. Moreover, private sector has historically not been interested in research for better techniques of soil and water management, rainfed agriculture, cropping systems, environmental impact and long-term sustainability (although this has seen some changes in the recent years). Therefore, the public-sector research must increasingly address the problems facing the resource-poor farmers in the less endowed regions. 519. The private sector also has a major role to play in the case of delivering extension services to farmers. The Government extension system, which traditionally delivers new technologies to rural people, has serious capacity limitations on physical outreach and is plagued with systemic

188

inefficiencies. Urban-rural divide has widened further due to digital revolution that is taking place, largely across urban areas. This gap has given rise to a new opportunity; i.e. IT-driven information and service providing centres that have come to be known in generic terms as village knowledge centres or rural information kiosks. 520. Marketing is another area where the private sector needs to enlarge its role. For small and marginal farmers, marketing of their products is main problem apart from credit and extension. In recent years, there has been some form of contract arrangements in several agricultural crops such as tomatoes, potatoes, chillies, gherkin, baby corn, rose, onions, cotton, wheat, basmati rice, groundnut, flowers, and medicinal plants. New production –market linkages in the food supply chain are spot or open market transactions, agricultural co-operatives and contract farming. 521. Small farmers can benefit from the emerging super markets and value chains. The presence of super markets as retail trade is rapidly expanding in India. A modern sector is emerging in the whole sale sector with the growth of modern logistics firms and specialized modern wholesalers. The traditional segment of the whole sale sector is also transforming. Most cities and towns in India now abound in various supermarket chains and stand-alone supermarkets that procure and sell agricultural produce at competitive rates. 522. There are several variations of Agri-business Franchising in India. One such example is that of SAPPL, a private potato supply chain company that has set up a new network of 36 franchisees in collaboration with a development project in Uttar Pradesh that provides farm input supply and produces buyback services to smallholders. The development project, Sunhara India, is funded by Bill and Melinda Gates Foundation and implemented by Agribusiness Systems International (ASI), a US-based non-profit consulting firm. The franchisees are the hubs from which farmers seek and obtain various services like input supply, extension advice and disposal of their output of potato on a pre-agreed price and market outlet. The franchisees are appointed by SAPPL which has extensive experience with farmers and the potato crop and works in many states of India in potato seed supply and output procurement and in turn supplies to various potato processors. SAPPL provides all the information, products and even services like soil testing to the farmers through the franchisees and buys back the potato crop thus completing the whole value chain of the potato crop. These examples offer valuable lessons for Rajasthan.

189

13) Priority Policy Reforms at the National and State Levels

a) Policy Recommendations at the National Level

i.Water 523. Given the precarious state of water in the state, there is an urgent need to increase allocation to Rajasthan for micro irrigation under PMKSY. The current allocation is inadequate to meet the requirements of the farmers in the state. The allocation ought to be raised from Rs. 120 crores to Rs. 2,700 crores annually in order to realise the full potential of MI in the state. It may be noted that the performance of MI was the best under the National Mission on Micro Irrigation (NMMI) and has considerably reduced under PMKSY. It may therefore be prudent to delink micro irrigation from PMKSY and deploy as an independent mission as was in the case of NMMI.

b) Policy Recommendations at the State Level

i.Water 524. Bulk of the water for irrigation is groundwater which is depleting at a very fast rate. Participatory groundwater monitoring as demonstrated under the Andhra Pradesh Farmer Managed Groundwater System (APFAMGS) offers valuable pointers. Farmers in AP drawing water from a common aquifer were mobilised into groups and trained to measure the groundwater level. Based on the volume of water available and the potential recharge, farmers collectively decided on the crop to be grown, irrigation volume and calendar, and measures to recharge the groundwater. This can easily be replicated in Rajasthan and will contribute to sustainable management of groundwater. The state has been actively promoting the adoption of micro irrigation. However, the allocation of

funds is reducing over the years. This can be overcome by bringing the MI industry under the priority

sector so that the banks are comfortable lending to this sector. The guidelines also change frequently

and there is a need for long-term guidelines that remain in place for a significant period of time to

reduce confusion and ensure steady implementation of the scheme.

525. Wheat, rapeseed-mustard, and chickpea are widely grown rabi crops and together consume 58 percent of the state’s blue water. If the area under wheat and rapeseed-mustard is reduced and instead chickpea is cultivated, it results in enormous water saving. Given the current low yield rate of chickpea, investing in research and development is required. If the productivity is enhanced to neighbouring Madhya Pradesh’s levels, it results in increased profits. If this is followed up by price incentives in the form of enhanced MSP and procurement, this will translate to huge gains in income to Rajasthani farmers and the country will also make considerable savings through reduced import of pulses. 526. While millets are widely grown in the state, they are hardly ever procured by state agencies. As a result, their prices remain depressed as compared to that of wheat. Karnataka has been procuring millets and distributing through the PDS since 2013-14. Odisha recently has launched a Millet Mission which aims to promote the production of millets, procure at MSP, and distribute through the PDS. Rajasthan can learn from the experiences of these two states and design a suitable intervention for itself. The levels of productivity of millets in the state is also very low and Rajasthan can seek guidance from neighbouring Madhya Pradesh where millet yield levels are double.

ii.Land Records 527. Not possessing conclusive titles has a serious impact on farm households who are unable to access entitlements such as KCC, institutional credit, crop insurance, etc. This was widely observed

190

and recorded during the field survey in Rajasthan. Out of the 527 Land Sub-Registrar’s Offices (SRO) in the state, 350 (66%), still function without any computerized support (January 2018). The balance has some form of computerization ranging from stand-alone systems performing basic word processing and similar functions to those with internet access enabling them to undertake some of the functions requiring a link to other data bases to ease the process of registration. The state therefore needs to make substantive investments in ramping up the digitisation of land records under the Digital India Land Records Modernization Programme (DI-LRMP).

iii.Credit 528. Small rural clients prefer to borrow frequently and repay in small instalments; banks could usefully explore the possibility of offering new and more flexible loan products, like those offered by microfinance. Here NABARD can take a lead in Rajasthan in designing and implementing a pilot initiative. The state needs to ensure adequate staffing at the field-level, particularly in the rural and cooperative banks, and PACS. Many farmers stop short of availing institutional credit despite the huge difference in the interest rates on account of the paperwork that is involved, which needs to be simplified. Also, digitisation of land records, land titling, and registration must be taken up on an urgent basis to enable farmers to offer a collateral against institutional loans.

iv.Livestock Sector 529. Despite a huge livestock population in the state, the investments in this sector is not commensurate to its contribution to the GDP. Markets for small ruminants are underdeveloped and the state has only two registered slaughterhouses, which indicates that most goats and sheep are traded live and slaughtered outside the state, depriving farmers of the benefits of value addition. There is an urgent need to increase the numbers of registered slaughterhouses so that small ruminant meat value chains can begin to evolve. 530. There is a need to create appropriate policy and incentive structures in order to attract both public and private sector investment to develop the livestock sector which is arguably the most pro-poor sector. In making policy and investment strategy, potential and comparative advantage of each lagging district in different commodities ‐ dairy, poultry, ruminant meat, wool, hides and skins ‐ should be objectively assessed and prioritized rather than trying to develop everything in each district. The objective should be to integrate better supply response in the lagging regions with growing demand in the leading regions. Current policy bias to dairy and large animals should be balanced by giving priority attention and support to small ruminants and backyard poultry which plays a critical role in the livelihoods of the poor.

531. Setting up market infrastructure requires substantial investments to support efficient distribution of livestock products. A large proportion of the investment will necessarily come from the private sector but, while encouraging private investment, measures will need to be put in place to improve the bargaining power of smallholders and to absorb downside production and market risks faced by them. This will require policy and public investment support in favour of producer organizations, risk mitigation (insurance, compensation, etc), reputation building through labelling or branding programmes, and improving access to information with respect to pricing and product quality. It is essential that new and durable systems such as modern co‐operatives, efficient contracting and efficient procurement by private players for the local settings be developed. In order to ensure that these arrangements are not exploitative rather are based on win‐win partnerships between the organizations and the primary producers of livestock products, proper regulatory measures need to be made.

191

v.Developing Integrated Value Chains and Promoting Agribusiness 532. Select value chains that are underdeveloped and can potentially contribute to enhancing income of the rural households are (i) spices – coriander; (ii) horticulture – mandarin oranges; (iii) medicinal plants – psyllium husk; (iv) organics cultivation, and (v) livestock product – small ruminant meat. Rajasthan has an abundance of raw material, but it is scattered – small individual suppliers spread out over large distances. As a result, the benefits of the marketing reforms introduced to modernize the APMC markets have been muted. Other than the Ramganj Mandi in Kota, there are no trading markets specializing in the focus crops. 533. In contrast the market in Unjha, in neighbouring Gujarat, is one of Asia’s largest trading centre for major dry commodities like seed spices, castor, ground nut, and psyllium husk. The traditional flow of raw material out of Rajasthan combined with better infrastructure and availability of risk capital and regulatory support has led to the development of agro-processing in neighbouring states like Gujarat (psyllium husk, guar, castor, seed spices, ground nut, pulses, rapeseed/mustard), Haryana/Punjab (barley, guar), Kerala (spices), etc. The state needs to invest more and reform the marketing of agri-produce in order to benefit farmers.

c) Policies that Require Joint Implementation and Monitoring by Centre and State

i.Soil Health 534. As per the official website farmer.gov.in, there are around 30 soil testing laboratories in the state. Of the 33 districts in the state, 18 do not have any kind of soil testing laboratory (government, PSU, private, KVK or SAU). Only five laboratories have the facilities for testing micronutrients - one in Jaipur and four in Tonk districts. Given that these facilities are woefully inadequate for testing and issuing soil health cards, 101 soil inspection centres were opened. But, unable to find agriculture scientists, 67 of these centres were handed over to a private company on PPP mode. The staff in these centres lack skills to scientifically test soil samples. Not one of these centres are equipped to test for micronutrients. The soil health cards therefore are carrying information that may lack accuracy. The state needs to urgently invest in improving the standards of soil testing facilities and building a trained cadre of scientists to test soils.

535. The SHC scheme in itself needs to be redesigned by the Centre. The existing uniform grid of 10 ha for dry lands and 2.5 ha for irrigated lands is not taking in to consideration local soil variability. There should be a separate cell to monitor and recommend grid size across the country. It will also reduce cost, money and manpower and increase relevance of recommendations to farmers. In order to gain credibility of the farmers, at least one sample from each farmer should be included where soil variability is high.

536. Microbial activity and moisture retention activity are essential but missing in SHC. Although soil organic matter is indicated, many soil testing labs are not equipped with latest tools to measure it. At least one or two physical and micro-biological indicators (such as soil texture, water holding capacity, water quality and bacterial content) need to be incorporated. Index of soil health needs to be developed and incorporated in to SHC which indicates overall health of the soil.

537. Strengthening and upgrading at least one soil testing lab per district as state-of-the-art lab equipped with world class infrastructure and accredited by internationally recognized agencies either in public or by private sector is required. So nearly 33 state-of-the-art labs are needed to act as referral labs and also to give broad advice to farmers. The cost per unit will be about Rs. 4-5 crore, with a total of Rs. 132 crores. However, if this resulted in Rs.1000/ ha savings in fertilizer use even if we don’t

192

consider the yield increase resulted in a saving of Rs. 2,394 crores in a year to the state’s economy. This could be worthwhile investment rather than spending money and providing services that have little value to farmers year after year i.e., ending up spending more in the long run.

ii.Crop Insurance 538. The key to the success of the PMFBY lies in (a) banks provide data to insurance companies in time, (b) the state government pays the premium subsidy, and (c) conduct crop cutting experiments promptly and accurately. Despite Rajasthan being among the better performing states with a coverage of around 20 percent of the gross cropped area under insurance, it still is way short in meeting the stated target of 50 percent coverage by 2018-19. There are delays in finalising tenders, payment of premium subsidy and in conducting CCE. For the year 2018, for instance, Rajasthan has not yet finalised the insurance companies for their clusters which may translate to insurance companies charging heavy a premium. 539. For increasing the coverage of PMFBY, both the Centre and the State need to work in tandem. At the Centre, there is a need to (a) negotiate a lower premium rate for reinsurance, (b) allow the state to finalise the tender for a longer duration, around three years, for getting a lower premium rate, (c) allow more numbers of insurance companies to participate locally, and (d) ensure that banks enter the complete information of farmers on the insurance portal to enable farmers to receive an SMS from the insurance company showing the premium deducted and sum insured. On the state’s part, they need to hasten the process of tendering and payment of subsidies, conducting CCE, and carry out crop loss estimation using the state-of-art technologies such as drones, smart phones and other related technologies.

193

14) Conclusions

540. The share of agriculture in the State’s GDP has been declining steadily. It fell by 15 percentage points from the 1991-92 level to 22.7 percent in 2014-15. There was a disproportionate decline in the proportion of people engaged in farming during the same period and over 62 percent of the state’s workforce remains engaged in farming. This has adversely impacted the income levels of farm households. The economy, on the other hand has been growing at a healthy rate. 541. Over 2005-15, agriculture and services in Rajasthan witnessed an increase in growth rate, whereas growth in the manufacturing sector saw a decline. Agriculture growth increased from 2.6 percent to 9.8 percent which underlines the significance of this sector to the state’s economy. These figures also highlight the declining share of industry, the sector that is expected to absorb a majority of farmers relinquishing farming. This also is a key reason why farmers stick to their profession despite it being a low paying occupation. 542. Government of India has focused on doubling the farmers’ income in seven years (from 2015-16 to 2022-23), marking a significant departure from past policies when the emphasis had been only on production rather than its marketability. The income approach would take into account the following additional pillars of production: (a) the quantum of output, (b) price of the output, (c) quantum of input, and (d) price of the input. This initiative can succeed only if a multi-pronged strategy is developed and implemented. The Government of Rajasthan has evolved one such strategy outlining the broad areas of focus. 543. As our analysis shows, keeping in mind the past trends, it may not be possible to double farmers’ income in seven years in Rajasthan. However, given the pace of an impressive agricultural growth, these can be substantially enhanced in the coming years. Investments in agriculture are vital for achieving the desired growth rate in farm income. This will also help in increasing the share of farm income as a ratio of the total farmer income, thereby improving the viability of agriculture. 544. Water is the most limiting factor in agriculture in the state and bulk of the investments need to be made in this sector. The state’s approach to promote water harvesting at the farm-level and the use of solar pumps and micro irrigation is commendable. However, public investments in these are being scaled down. There is an urgent need to reduce the area under wheat – a water guzzling crop – and promote the production of pearl millet, pulses and oilseeds that require much less water. The role of MSP backed by procurement and distribution through the PDS will be crucial for this to succeed. 545. As the survey results show, access to credit and extension services are rather low in the study villages. It is important that these needs of the farmers are met. There also is a need to improve the capital use efficiency in public projects by investing in area-specific and domain-specific needs in order to maximise dividends. There is also scope for further accelerating capital formation by implementing policies that would attract stakeholders from the private corporate sector as well as the formal and organised sector apart from farmers. 546. A major driver of agricultural growth in the state is the livestock sector. Investment in the sector is not only inadequate but the policy environment has not been supportive in many cases to afford cost-effective delivery of services and support. Rajasthan needs to build a strong foundation to support the sector including skilled human resources to deliver across the continuum from laboratory to farm to market. All stakeholders have a role to play and the state government needs to foster the partnerships, both nationally and internationally, that will support a vibrant and productive livestock industry.

194

547. The state has carried out substantive reforms in agri-marketing. There however is a need to effectively implement the MSP and Market Intervention Schemes with well-articulated institutional mechanisms. The agro-processing scheme needs a relook which is more attractive to investors. 548. Off-farm income is a major contributor to a farm household’s income. However, bulk of the employment is in the informal sector, mainly as casual wage labour in the mining sector. Education levels are low and so are the skill sets. There is a need for the National Skill Development Corporation to focus on building skills in the agricultural sector as well. This is in view of the fact that the pace of employment generation in the non-farm sector is very slow and inadequate to absorb the vast numbers that seek employment. 549. Lastly, there is plenty of scientific evidence pointing out that in future, the most limiting factor in farming would be soil health given the climate change regimes. There is ample literature on how this can be better addressed. These and many more efforts are required to ensure that income of farmers is enhanced.

195

I. REFERENCES

A Gupta, A. G. (2016). Suicide Despite Compensation. Economic & Political Weekly, 51(18), 4.

A Narayanamoorthy, R. D. (2005). Where Water Seeps! Towards a New Phase in India's Irrigation

Reforms. New Delhi: Academic Foundation.

A Vaidyanathan, A. K. (1994). Impact of Irrigation on Productivity of Land. Journal of Indian School of

Political Economy, 6(4), 60-145.

Abhijit Sen, M. B. (2004). Cost of Cultivation and Farm Income in India. In State of Indian Farmer. New

Delhi: Academic Foundation.

Acharya, S. (1997, January-March). Agricultural Price Policy and Development: Some Facts and

Emerging Issues. Indian Journal of Agricultural Economics, 52(1), 1-47.

Acharya, S. (2004). A Millennium Study: Agricultural Marketing in India. In GoI, State of Indian Farmer,

Vol 17. New Delhi: Academic Foundation.

Akhaury, V. (2016, April 1). Digitisation of land records: How the relaunched programme will help

overcome property crimes and frauds. Retrieved August 14, 2017, from Firstpost:

http://www.firstpost.com/business/digitisation-of-land-records-how-the-relaunched-

programme-will-help-overcome-property-crimes-and-frauds-2708226.html

Appu, P. (1975). Land Reform in India: A Survey of Policy, Legislation, and Implementation. New Delhi:

Vikas Publishing House.

Bart Minten, A. V. (2012). Regulations, Brokers, and Interlinkages: The Institutional Organisation of

Wholesale Markets in India. Journal of Development Studies, 48(7), 864-86.

Bhalla, S. (2012, May 10). Price of paddy populism. Retrieved August 23, 2017, from Indian Express:

http://indianexpress.com/article/opinion/columns/price-of-paddy-populism/

Chand, R. (2003). Minimum Support Prices: Changing Requirements. Economic and Political Weekly,

38(29), 3027-28.

Chand, R. (2008). Global Food and Financial Crisis: Experience and Perspective from India. In FAO,

Agricultural Reforms and Trade Liberalization in China and Selected Asian Countries (Vols.

Policy Assistance Series 6, RAP Publication 2009/15). Bangkok: FAO.

Chand, R. (2012, December 29). Development Policies and Agricultural Markets. Economic and

Political Weekly, 47(52), 53-63.

Chand, R. (2016, July 9). e-Platform for National Agricultural Market. Economic and Political Weekly,

51(28), 15-18.

Chand, R. (2016, April 15). Why doubling farmers' income by 2022 is possible. The Indian Express.

Chand, R. (2017, March). Doubling Farmers' Income: rationale, strategy, prospects and action plan

(Niti Policy Paper No.1/2017). New Delhi: Niti Aayog, GoI. Retrieved July 28, 2017, from

http://niti.gov.in/writereaddata/files/document_publication/DOUBLING%20FARMERS%20IN

COME.pdf

Chen, C. (2014, May). China's 2014 State Policy on Rural Development and the Agriculture Indistry:

Investment Implications. Retrieved December 28, 2016, from China Briefing:

196

http://www.china-briefing.com/news/2014/05/27/chinas-state-policy-rural-development-

agriculture-industry.html

Clare Narrod, D. R. (2009, February). Public–private partnerships and collective action in high value

fruit and vegetable supply chains. Food Policy, 34(1), 8-15.

Cook, S. (2016, September). Nurturing the shoots of China's sustainable agriculture. Retrieved

December 28, 2016, from IIED: Cook, Seth, (September 2016), Nurturing the

http://www.iied.org/nurturing-shoots-chinas-sustainable-agriculture

CSE. (2017). Pradhan Mantri Fasal Bima Yojana: an assessment. New Delhi: Centre for Science and

Environment.

Cullinan, C. (1999). Laws and Markets: Improving the Legal Environment for Agricultural Marketing.

Rome: FAO.

De, R. (2008). Control, Depoliticisation and the eState. In M. W. al., EGOV 2008: Lecture Notes in

Computer Series (pp. 61-72). Heidelberg: Springer-Verlag.

Devesh Roy, A. T. (2008). Success in High Value Horticultural Export Markets for the Small Farmers:

The Case of Mahagrapes in India. World Development, 36(10), 1874-1890.

Dhawan, B. (1988). Irrigation in India's Agricultural Development: Productivity, Stability, Equity. New

Delhi: Sage Publications India Pvt. Ltd.

GoI. (1985). Seventh Five Year Plan. New Delhi: Planning Commission.

GoI. (2005). Situation Assessment Survey of Farmers: Access to Modern Technology for Farming (59th

Round (January - December 2003). New Delhi: National Sample Survey Organization, Ministry

of Statistics and Programme Implementation.

GOI. (2007). Report of the Expert Group on Agricultural Indebtedness (Chairman: R Radhakrishna).

New Delhi: Ministry of Finance.

GoI. (2011). Report of the Working Group on Agricultural Marketing Infrastructure, Secondary

Agriculture and Policy Required for Internal and External Trade for the XII Five-Year Plan 2012-

17. New Delhi: Planning Commission.

GoI. (2011). Report of the Working Group on Agricultural Marketing Infrastructure, Secondary

Agriculture and Policy Required for Internal and External Trade for the XII Five-Year Plan 2012-

17. New Delhi: Planning Commission.

GoI. (2014). Situation Assessment Survey of Agricultural Households, NSS 7th Round. New Delhi:

MOSPI.

GoI. (2015). Raising Agricultural Productivity and Making Farming Remunerative for Farmers. New

Delhi: Niti Aayog.

GoI. (2016). Crop Insurance. Retrieved August 23, 2017, from Department of Agriculture, Cooperation

and Farmers Welfare: http://agri-insurance.gov.in/Pmfby.aspx

GoI. (2016). Report of the Expert Committee on Land Leasing, Government of India, New Delhi. New

Delhi: Niti Aayog.

197

GoI. (2017, August 10). Department of Agriculture, Cooperation and Farmers Welfare. Retrieved from

Soil Health Card: http://soilhealth.dac.gov.in/

GoI. (2017, April 24). The State/UT Agriculture Produce and Livestock Marketing (Promotion and

Facilitation Act 2017. Retrieved August 9, 2017, from Department of Agriculture and

Cooperation: http://agricoop.nic.in/sites/default/files/APLM_ACT_2017_1.pdf

GoI. (2017). Three Year Action Agenda, 2017-18 to 2019-20. New Delhi: Niti Aayog. Retrieved August

9, 2017, from http://niti.gov.in/writereaddata/files/coop/ActionPlan.pdf

Gulati, A. (2012, June 24). Column : Hike MSPs or free up agriculture. Retrieved August 23, 2017, from

Financial Express: http://www.financialexpress.com/archive/column-hike-msps-or-free-up-

agriculture/961764/

I Hussain, M. H. (2004). Irrigation and Poverty Alleviation: Review of the Empirical Evidence. Irrigation

and Drainage, 53(1), 1-53.

IFAD. (2016). Investing in Rural People of Brazil. Retrieved December 26, 2016, from IFAD:

https://www.ifad.org/documents/10180/f5eb1cd0-a412-45bc-9218-1dc9fd7876b5

KN Nair, V. M. (2006, June 30). Lease Farming in Kerala. Economic and Political Weekly, 41(26), 2732-

2738.

Mahendra Dev, N. R. (2010, June). Agricultural Price Policy, Farm Profitability and Food Security.

Economic and Political Weekly, 45(26-27), 174-182.

Mani, G. (2016, October 15). Model Agricultural Land Leasing Act, 2016: Some Observations. Economic

and Political Weekly, 51(42), ISSN (Online) - 2349-8846. Retrieved from

http://www.epw.in/journal/2016/42/web-exclusives/model-agricultural-land-leasing-act-

2016-some-observations.html

Manitra Rakotoarisoa, A. (2006, June). Competitiveness and trade potential of India’s dairy industry.

Food Policy, 31(3), 216-227.

MN Reddy, B. S. (2006). Strategy for up-scaling the ATMA model in India. In J. Vreyens, Proceedings of

the Association for International Agricultural and Extension Education. Clearwater Beach,

Florida, U.S.: AIAEE 22nd Annual Conference.

Murali DA, R. V. (2017, August 5). Revival of Agriculture Sector and Increasing Tenancy in India.

Economic and Political Weekly, 52(31), 18-21.

OECD. (n.d.). Brazil- Agriculture Policy Monitoring and Evaluation. Retrieved December 26 2016, from

OECD: http://www.oecd.org/brazil/brazil-agriculturalpolicymonitoringandevaluation.htm

Office of the Federal Register (US). (2015, January 2). Marketing Assistance Loans, Loan Deficiency

Payments, and Sugar Loans. Retrieved August 9, 2017, from Federal Register:

https://www.federalregister.gov/documents/2015/01/02/2014-30530/marketing-

assistance-loans-loan-deficiency-payments-and-sugar-loans

PIB. (2017, March 17). Press Information Bureau. Retrieved August 10, 2017, from Progress of Soil

Health Card: http://pib.nic.in/newsite/PrintRelease.aspx?relid=159441

Planning Commission. (2007). Report of the Steering Committee on Agriculture and Allied Sectors for

Formulation of the Eleventh Five-Year Plan (2007-12). New Delhi: Planning Commission.

198

Planning Commission. (2011). Report of the Working Group on Agricultural Marketing Infrastructure,

Secondary Agriculture and Policy Required for Internal and External Trade for the XII Five-Year

Plan 2012-17. New Delhi: Planning Commission.

Pratap Singh Birthal, P. K. (2013, March). Diversification in Indian Agriculture toward High-Value Crops:

The Role of Small Farmers. Canadian Journal of Agricultural Economics, 61(1), 61-91.

PTI. (2017, April 24). Government aims to end APMC monopoly with new model agri-market law.

Retrieved August 9, 2017, from Financial Express:

http://www.financialexpress.com/economy/government-aims-to-end-apmc-monopoly-

with-new-model-agri-market-law/640612/

Pulapre Balakrishnan, R. G. (2008). Agricultural Growth in India: Development Research Group Study

No. 27. Mumbai: Reserve Bank of India. Retrieved August 23, 2017, from

https://rbidocs.rbi.org.in/rdocs/content/

R Vijay, Y. S. (2013, June 29). Agrarian Structure and Land Lease Arrangements: An Investigation in

Nine Villages in Andhra Pradesh. Economic and Political Weekly, 48(26-27), 42-49.

Raabe, K. (2008). Reforming the Agricultural Extension System in India. What do we know about what

works, where and why? (Vol. Discussion Paper 00775). Washington D.C: IFPRI.

Ramesh Chand, P. S. (2015, October 31). Fertiliser Use and Imbalance in India: Analysis of States.


Rasheed Sulaiman, A. H. (2005). Effectiveness of Private Sector Extension in India and Lessons for the

New Extension Policy Agenda . London: Overseas Development Institute.

Rasheed Sulaiman, G. H. (2002). Extension, Poverty and Vulnerability in India: Country Study for the

Neuchatel Initiative. London: Overseas Development Institute.

RS Deshpande, M. B. (2004). Crops and Cultivation. In State of the Indian Farmer. New Delhi: Academic

Foundation.

RS Deshpande, N. P. (2006). Farmers' Distress: Proof beyond Question. Economic and Political Weekly,

40(44-45), 663-665.

S Chandrasekhar, N. M. (2016, April 30). Doubling Farmers' Incomes by 2022: What Would it Take?


S Fan, P. H. (1999). Are returns to Public Investments Lower in Less-Favoured Rural Areas? An Empirical

Analysis of India (Vol. Discussion Paper No. 43). Washington DC, USA: IFPRI.

S Fan, P. H. (2000). Should Developing Countries Invest More in Less-Favoured Areas? An Empirical

Analysis of Rural India. Economic and Political Weekly, 35(17), 1455-1464.

Schnepf, R. (2015). 2014 Farm Bill Provisions and WTO Compliance. Washington DC: Congressional

Research Service. Retrieved from https://fas.org/sgp/crs/misc/R43817.pdf

Schultz, T. (1964). Transforming Traditional Agriculture. New Haven, USA: Yale University Press.

Sharma, H. (2006, February 25). Liberalising the Lease Market. Economic and Political Weekly, 41(8),

696-698.

199

Singh, S. (2017, January 14). Tenancy Reforms: A Critique of NITI Aayog’s Model Law. Economic and


Sukhpal Singh, S. B. (2015, November 7). Commission Agent System: Significance in Contemporary

Agricultural Economy of Punjab. Economic and Political Weekly, 50(45), 56-62.

Tushar Shah, G. M. (2016, February 6). Har Khet Ko Pani? Madhya Pradesh’s Irrigation Reform as a

Model. Economic and Political Weekly, 51(6), 19-24.

Vaidyanathan, A. (2006, September 23). Farmers' Suicides and the Agrarian Crisis. Economic and


200

15) ANNEXES

ANNEX 1. Detailed Strategy for Doubling Farmers' Income in Rajasthan

A strategy for doubling of farmer’s income needs to be multipronged covering a range of options for the farm household. For a state like Rajasthan, any intervention in the agricultural sector must be aligned with rainfed agriculture. This must include three significant paradigm shifts: (a) need to enhance and make more effective and sustainable use of public investment in rainfed agriculture, (b) need to build capacities for location-specific, decentralized governance and knowledge systems for rainfed agriculture, and (c) need to shift from conventional “production per hectare” thinking as the sole measure of performance to an approach that can integrate livelihoods (agriculture and rural non-farm), availability and access to food, ecosystem and human health. For working on this paradigm, it is desirable to catalyse convergence of key government programmes relevant for rainfed agriculture such as MGNREGA, NRLM, BRGF, MKSP, and RKVY that support natural resource management, local governance capacities, location specific technological and market development in rainfed agriculture. Some of the elements of sustainable rainfed agriculture have been around and also found a place in the planning and programming exercises. However, there is a need to embed these elements of this paradigm into a better configured and operationalized, especially at optimally decentralized administrative and bio-physical levels (block-level or agro-ecological sub-regions). For this operationalizing, conceptualization and measurement of variables like productivity, efficiency, integration and sustainability is required. Water is the key scarce resource under rainfed condition and among all Indian states, it is the foremost limiting in the case of Rajasthan. In addition to water, soils are another critical natural resource that need to be healthy in order to be able to support crop production. Analysis shows that around 23.95 per cent (2011-13) and 23.64 per cent (2003-05) of desertification/ land degradation with respect to total gross area of the country is contributed by Rajasthan, Maharashtra, Gujarat, Jammu & Kashmir, Karnataka, Jharkhand, Odisha, Madhya Pradesh (MP) and Telangana in descending order. All other remaining states are contributing less than 1 per cent (individually) to desertification/ land degradation. Raising crop production and productivity under this circumstance in Rajasthan, the highest contributor to land degradation and desertification, is a huge challenge. Overuse of fertilisers, especially nitrogenous ones, has a degrading effect on the environment. Part of applied fertiliser N is lost as NH3, N2, and NOx gases, which adversely affect the environment44. NH3 after oxidation to NO3 also contributes to soil acidity, while other NOx-es are involved in depletion of the stratospheric ozone layer. Part of applied fertiliser N leaches down as NO3 and contaminates the groundwater resources. Various studies have found that NO3 contamination in groundwater has become a matter for concern in many states. For example, one of the hazardous side effects of NO3 contamination in groundwater is methemoglobinemia or the blue baby syndrome. A study in Rajasthan revealed that there is severe methemoglobinemia in all age groups of the population, especially in the less than one-year age group45. A key enabler to accessing entitlements such as subsidised institutional credit and crop insurance is the possession of clear land titles. The field visit to Rajasthan threw up a very surprising set of observation on a very low level of penetration of both. Most respondents in the primary survey

44 Prasad, R. (2009): ‘Efficient fertiliser use: The key to food security and better environment’ in Journal of

Tropical Agriculture, Volume 47(1-2) 45 Gupta, S.K., R.C. Gupta., A.K. Seth, A.B. Gupta, J.K. Bhasin, and A. Gupta (2000): Methemoglobinemia in

areas with high nitrate concentration in drinking water in National Medical Journal of India, 13(2): 58–61

201

pointed out not possessing clear land titles as the reason. This highlights the slow pace of progress made under the Digital India Land Records Modernization Programme (DI-LRMP). The share of livestock in agricultural sector GDP growth in India has been increasing faster than the crop sector in the past decade because of rising demand for livestock products propelled by income and population growth and urbanization. Nearly 90 percent of livestock production in India is by more than 100 million smallholder farmers, women supply more than 75 percent of labour; and that ownership of livestock is more equitable than land, highlights the major role livestock play in poverty reduction and food and nutrition security directly through increased consumption and indirectly through increased income and employment generation. Demand growth trend is expected to continue especially for dairy which currently accounts for two third of livestock sector output, but supply is not keeping pace with demand. The productivity of the predominantly smallholder production system is low and while in the case of dairy higher producing crossbreds and buffalo are replacing lower production non-descript cattle, national yield has been increasing rather slowly because of poor and ineffective breeding, animal health and extension services and inadequate and poor-quality feed supply. This low productivity comes at the expense of the environment and cannot be sustained. The trend is consistent for Rajasthan as well. Considerable, economically exploitable, productivity gaps in the livestock sector still remain in much of the country. Yield variations across states and agro-ecological regions suggest considerable potential for enhancing productivity by investing in technology and services - feeding, breeding, animal health and extension. Inadequate feed supply and high feed cost is a major constraint for economic improvement of productivity. So, investment in research as well as accessing knowledge from global experiences are of critical importance. Less than 20 percent of milk, the main product, and less than 5 percent of meat is currently handled by the formal processing sector. These shares are expected to rise driven by private sector investment capitalizing on escalating product demand. Indeed, providing the enabling environment to attract the private sector is important for increasing productivity and growth of the sector. The transformation of the efficiency of the marketing system to link small scale producers and distant consumers at reduced marketing and transaction costs will help keep retail prices low to enhance demand especially among lower income consumers and serve as a trigger for increased growth. Investment in the sector is not only inadequate but the policy environment has not been supportive in many cases to afford cost-effective delivery of services and support. Rajasthan needs to build a strong foundation to support the sector including skilled human resources to deliver across the continuum from laboratory to farm to market. All stakeholders have a role to play and the state government needs to foster the partnerships, both nationally and internationally, that will support a vibrant and productive livestock industry. In the wake of continued export slowdown and fast changing global market scenario, the Government of India has responded with a series of initiatives. One of the key policy measures that has been initiated includes calling for greater involvement of States in pushing exports. As of now, under the federal architecture of India’s governance, foreign trade related matters are handled by the Central Government whereas the actual production of goods and services happens in States. There is less intervention from the State Governments in terms of overall foreign trade policy formation. Higher participation of the State Governments is required for trade facilitation, reform of standards regime and more value addition in the production cycle. Involvement of States is critical to bridge the gap between the capacity of the domestic industry and the demand emanating from the international market.

202

Realizing the need for an active participation of State Government in overall trade development of the country, Ministry of Commerce and Industry, GoI constituted a platform to identify and address trade and infrastructure gaps which adversely affect India’s exports. All Indian States together with the relevant ministries and business associations are the members of this Council for Trade Development and Promotion. Through this platform, the Centre and States jointly work to synergize efforts and take appropriate steps to boost India’s exports. Doubling farmer’s income in nominal terms would be rather simple as has been observed in past based on NSSO data. The challenge is to double it in real terms. As per our assessment, this is unlikely in the current scenario, as presented in Chapter 4 (Income and Investment Required to Double Farmer’s Income). The strategy therefore focusses on enhancing incomes of farming households. This comprises the following:

1. Changing the cropping pattern based on efficient water usage 2. Improving soil health 3. Modernising and updating land records 4. Improving access to institutional credit 5. Improving coverage of crop insurance 6. Augmenting income through the livestock sector 7. Building sustainable agri-value chains and promoting agri-business 8. Promoting marketing reforms 9. Promoting effective agri-extension 10. Promoting exports 11. Skill enhancement for non- and off-farm employment

The details of this strategy are explained below. More Crop Per Drop

Recurrent droughts and paucity of water emerged as the main scourge of farmers in the state. Surface

water for irrigation is limited and there is a huge pressure on ground water which is severely depleted

across the state. Groundwater is a classic common pool resource (CPR). Its provision is relatively

inexpensive; access is near universal and also possible indirectly (via the pump irrigation market);

while exclusion is prohibitively costly, if not impossible.

Groundwater extracted and consumed by one user becomes unavailable for other users, at least in

the same time and space. Moreover, as an 'invisible resource', its extent and limits are difficult to

perceive. Secular long-term decline in groundwater table often occurs on a large scale and cannot be

reversed by individual action. Moreover, by the time there is widespread realization about the decline;

most users have gotten accustomed to non-sustainable levels of resource use. Any potential recovery

takes a long time and requires high quality information, functional regulation and cooperation among

a large number of users (Schlager 200746). Groundwater over-exploitation is therefore not only

common but rampant.

Participatory Groundwater Governance

The Andhra Pradesh Farmer Managed Groundwater System (APFAMGS) project is an enabling

intervention for managing groundwater overdraft through voluntary self-regulation and provides

valuable lessons on water governance for Rajasthan. The project inverted the conventional approach

46 Schlager, E. (2007) Community Management of Groundwater, In Agricultural Groundwater Revolution: Opportunities and Threats to Development, CAB Series.

203

to groundwater management and instead of an external entity determining and actively policing the

limits to groundwater withdrawal, APFAMGS encouraged farmers to collect local water data and make

collective resource use decisions. The result “may be the first example globally of large-scale success

in groundwater management by communities” (Garduño et al 200947).

At the heart of the APFAMGS approach is the belief that demystification of science of hydrology –

through farmer training in measurement and analysis of water data - would lead them to sustainable

management of the resource without unduly affecting their farming livelihoods. The project

undertook extensive training of farmers (Farmer Water Schools) and established a hydrological

monitoring system (Rainfall Data, Observation Wells, Groundwater Level Data) to facilitate an annual,

participatory exercise of community decision making (Crop Water Budgeting). The crop water

budgeting process, it was believed, would encourage appropriate demand management and result in

sustainable resource management.

The tangible impact of APFAMGS was to come from the annual practice of well owners coming

together, taking stock of the shared groundwater resource (using the data collected by them) and

taking collective decisions on cropping and irrigation intensity. This practise of crop water budgeting

performed well till the project was being run. However, in the absence of a community-driven

universal legitimacy of rules and graduated sanctions for violators, this practise was watered down

over time. The difficult-to-obtain enabling conditions and policy environment required for

participatory approaches to succeed must not be ignored. These difficult requirements restrict the

replication potential of programs that rely heavily on voluntary participation from people based on

enlightened understanding of their resource. These offer valuable lessons for putting in place a

groundwater management strategy in Rajasthan.

The steps that can be taken up in Rajasthan to operationalise a groundwater management strategy

ought to comprise the following:

1. Facilitate the creation of skilled people who take the responsibility of groundwater management.

2. Make the farmers aware of groundwater dynamics as well as the consequences of overuse. 3. Talk about the concerns that the farmers have about overuse and come up with solutions to

those problems. 4. Teach the users about the benefits of participating in management of their water resources. 5. Institutionalize the community management of groundwater to deal with issues related to

sustainable groundwater management. 6. Facilitate the formation of Groundwater Management Committees (GMC) made up of the

users of groundwater to monitor the level of the groundwater, rainfall, and discharge. 7. Introduce and promote Crop Water Budgeting (CWB) as a tool to help farmers identify proper

crops to plant depending on water levels. 8. Promote eco-friendly farming practices through the Farmer Field School (FFS) approach. 9. Empower communities to employ appropriate groundwater recharge measures.

The following institutional mechanism is proposed for improved ground water governance: In order

to build an improved understanding of groundwater usage, a drainage basin approach ought to be

used to define a Hydrological Unit (HU) that includes the underlying groundwater. A Habitation Water

47 Garduño, H., Foster, S., Raj, P. and van Steenbergen, F. (2009) Addressing groundwater depletion through community-based management actions in the weathered granitic basement aquifer of drought-prone Andhra Pradesh – India. Case Profile Collection Number 19, GWMATE Briefing Notes Series. Washington: The World Bank.

204

Committee needs to be formed in each village, with representation from all types of water users.

About 2 to 4 representatives from each habitation water committee will be nominated to the GP

Water Sub-committee. These nominated members along with the elected members of the GP will

form the GP Water Sub-Committee. The sub-committee will be chaired by the GP Sarpanch (the

elected head of the GP) will have legal powers as integral part of the GP. Habitation Water Committees

and GP Water Sub-committees will review hydrological and meteorological data, monitor water

supply and demand, monitor the adoption of the HU water management plan, and discuss strategies

for effective implementation of the plan. All the GP Water Sub-Committees in an HU will form a

Hydrological Unit Network (HUN). The HUN will meet once every 3 months to review the

implementation of water management plans by the GPs in the drainage basin and identify strategies

for effective implementation of the plan.

Improved Water Efficiency

Economic and efficient utilisation of water would be advantageous to the farmers and also enable

farming over more land mass. Pradhan Mantri Krishi Sinchayee Yojna (PMKSY) was launched in 2015,

integrating micro irrigation in the flagship scheme as an integral component. The scheme focusses on

providing an end-to-end solution to the irrigation supply chain. One key differentiator for micro

irrigation is that when compared to other components of this scheme, which include creating

infrastructure to bring water to farms and watershed development, micro irrigation presents a quick-

win opportunity for all the stakeholders where the implementation can be completed within a short

period.

The total potential of micro irrigation in India is estimated at around 69 Mha, however the coverage

of micro irrigation is only 7.7 Mha (2015). With the current target of achieving 0.5 Mha/ annum

coverage, it would take a very long time to realise the potential estimates of micro irrigation in India.

Despite the stated focus on micro irrigation, the subsidy in last few years has been declining and the

proposed subsidy under PMKSY is lower still (INR 1,075 crores in 2015-16 and INR1,111.8 crores in

2014- 15). The utilisation of funds released has also reduced year-on-year pointing towards the

challenges faced in implementation of these government schemes.

The key issues related to implementation of the scheme in Rajasthan during the field visit are summed

up below.

1. Lack of focus on micro irrigation: The years of operation of National Mission on Micro

Irrigation (NMMI) showed the strongest growth of micro irrigation penetration in the recent

decade. However, since the scheme was changed to a component under the National Mission

for Sustainable Agriculture (NMSA), there has been a lack of focus on spreading micro

irrigation in India, which is a continuing issue seen with the PMKSY.

2. Lack of IT-backed operations: Tracking the installation of a micro irrigation system, step-by-

step, from initiation of work order to installation and payment is still not happening on

ground, which is a major source of inefficiencies in the system where IT can play an important

role.

3. Delay in release of guidelines/ government orders, uncertainty and sporadic changes in

scheme guidelines: The lack of smoother/ longer-term guidelines pose a major challenge as

evidenced by the fact that operational period of the schemes, on an average, is only five

months where the farmers miss the utilisation of the micro irrigation system during the peak

demand season.

205

4. Subsidy disbursement process: Continues to be a big impediment in the growth of the

industry. Unavailability of subsidy funds for installations already approved, delayed release of

funds, identification of beneficiaries among others, leading to significant delays.

5. Absence of easy financing mechanisms for farmers: Farmers face major challenges in finding

financing option for the micro irrigation products and in case they do find a financing source,

there are high collateral demands.

The following measures can help overcome the above-mentioned deficiencies in service delivery of

micro-irrigation programme in Rajasthan.

1. Financial inclusion, which entails providing priority sector lending status to MI industry and

helping the farmer with financing for the equipment through steps such as interest subvention

and credit guarantee fund, to ensure that banks are more comfortable providing funding in

this industry and this can be a step in the direction of reducing the dependence on subsidy

over time.

2. Direct transfer of subsidy- In order to enable farmers to choose a manufacturer of micro-

irrigation system, the DBT mode ought to be explored. This can be dovetailed with benefits of

financial inclusion with interest subvention, credit guarantee provisions, etc. to the farmer,

while making the entire process easier through a simple IT enabled system. The third-party

assessment also ensures that the product a farmer receives is up to the mark and therefore,

a farmer can avail its full utility. Since each step of the process will be updated online, the road

blocks and bottlenecks can be observed in real-time basis and thus, there is high transparency

and accountability. This can be taken up as “on demand micro irrigation under PMKSY” with

initially targeting at least one Mha coverage and can be phased to ensure remaining potential

been covered as the scheme matures.

3. Promoting better process management, which entails having a dedicated team whose priority

would be promoting micro irrigation at the state level. Also ensuring stronger IT capabilities,

thereby a complete online tracking mechanism from installation of MI equipment to fund

flow.

4. Ensuring smoother and long-term guidelines that remain in place for a significant period of

time to reduce confusion and ensure steady implementation of the schemes.

5. Providing crop focus solutions, for example making use of micro-irrigation mandatory for

water guzzling crops.

6. Providing infrastructure status to the micro- irrigation industry to reduce some of the

operating costs for MI manufacturers and thereby, reducing the cost of the equipment for the

farmer.

Gautam et al (2017) have made an effective proposal to improve water use efficiency through

managing the demand for water by changing the cropping pattern in favor of less water-intensive

crops. The bulk of available blue water in Rajasthan is used to irrigate rabi crops when green water

availability is very low. Wheat, rapeseed-mustard, and chickpea are widely grown rabi crops and

together consume 58 percent of the state’s blue water. Among these crops (occupying 13 percent, 11

percent, and 6 percent of current cultivated area, respectively), water intensity measured as per unit

of cropped area is the lowest for chickpea, followed by rapeseed-mustard and wheat. The impact of

reallocating land from the water-intensive wheat and rapeseed-mustard to the less water-intensive

chickpea can be substantial. The tradeoff is shown in Table 89.

206

A reallocation among these crops toward less water-intensive chickpea, assuming a 10 percent shift

in the cropping areas of wheat and rapeseed-mustard (3.2 million and 2.7 million ha, respectively) to

chickpea, could save 657 million cubic-meters (MCM) and 586 MCM of water, respectively. However,

this saving would not be without loss. The net loss from a 10 percent area reallocation from wheat for

the average farmer is estimated at about 10 percent, resulting in an aggregate loss of about INR 45

crores. Similarly, the loss from rapeseed-mustard at the farmer level is 8 percent, for an aggregate loss

of about INR 32 crores (Table 89). Importantly, this loss can be avoided for a win-win outcome if

Rajasthan invests in technology (research and extension) to increase its yield levels from the current

low level of 993 kg per hectare. A simple simulation, using the current yield of 1114 kg per hectare

obtained in neighboring Madhya Pradesh as a comparator (an increase in Rajasthan’s yield by about

12 percent), shows a gain of about INR 54 crores on the area switched from wheat and INR 100 crores

on the area switched from rapeseed-mustard.

The main conclusion is that options exist to save water without negatively impacting farmers’ income,

but these require creating the incentives that encourage adoption of technologies and crops that are

water-efficient but still generate high net returns per hectare. Incentives can be altered by removing

policy distortions that encourage adoption of water-intensive crops (such as wheat, production of

which is encouraged by the high and continuously rising MSP, and the riskless marketing environment

created by public procurement at the MSP) or at least levelling the policy playing fields by not

penalizing other crops. The latter would require policy and investment decisions to focus on

improvements on both the supply and demand sides:

Table 89. Change in water use and farm income with a change in crop area allocation

Wheat Rapeseed-mustard

Chickpea (current yields in Rajasthan)

Chickpea (with yield increase to MP level)

Blue water use (m3/ha) 3011 2812 1166 1166

Yield (kg/ha), TE2013–14 4157 1263 993 1114

Price (INR/ton), 2013 14619 35827 38851 38851

Gross revenues (INR/ha), 2013 60773 46109 28581 43280

Cost of production (INR/ha), 2013 46569 31256 25768 28908

Net returns (INR/ha), 2013 14204 13993 12811 14372

Area (000 ha), TE2013–14 3196 2661 1478 1478

Reallocate 10 percent area from wheat/R-M to chickpeas With current yields With MP yields

from wheat

from R-M

from wheat

From R-M

10 percent area shift to chickpea -319.6 -266.1 319.6 266.1 319.6 266.1

Change in blue water use (000 m3) -962316 -748273 372654 310273 372654 310273

Change in output value (INR billion) -19.4 -12.0 12.3 10.3 13.8 11.5

Change in production cost (INR billion) -14.9 -8.3 8.2 6.9 9.2 7.7

Net gain or loss (INR billion) -4.5 -3.7 4.1 3.4 4.6 3.8

Total cost of switching (INR billion) -0.45 -0.32 0.54 1.01

Note: MP = Madhya Pradesh. R-M = Rapeseed-mustard. Area estimates are from Agricultural Statistics at a Glance 2014–15, Ministry of Agriculture (MOA), GoI. Output price (implicit), yield, gross revenue per hectare and cost of cultivation are from the Cost of Cultivation of Principal Crops data for Rajasthan, based on annual surveys conducted by MOA.

207

• improve market access, including investments in physical market infrastructure

• promote robust value chains to create stable and reliable sales outlets

• encourage private investment for value addition and agro-processing for the desirable crops

where the commercial/market conditions (domestic or export demand) allow

• provide supportive public infrastructure, including roads, electricity and industrial water

• investing research and extension, or broadly technology services, that can close the current

yield gaps and sustain future yield growth

• make crops more resilient and suitable to the growing conditions in the state

• promote farming practices to enhance the productivity and competitiveness of Rajasthan in

crops that it has a comparative advantage in.

Soil Health

The major challenges of soil health in Rajasthan are presented below:

1. The progressive fragmentation of land holdings, degrading natural resource base and

emerging concerns of climate change are escalating pressure on land and water. Food demand

must however be met from the same limited net sown area by increasing productivity with an

optimal use of available water and other inputs.

2. Natural resources viz. arable land, water, soil, biodiversity (plant, animal and microbial genetic

resources) are rapidly shrinking due to demographic and socio-economic pressures, monsoon

disturbances, increasing frequencies of floods and droughts. Overuse of marginal lands,

imbalanced fertilizer use/application, deteriorating soil health, diversion of agricultural land

to non-agricultural uses, depleting aquifers and irrigation sources, salinization of fertile lands

and water-logging are pressing challenges requiring urgent attention.

3. Physical degradation caused by compaction, crusting, excessive cultivation or puddling, water

logging, decrease in water infiltration and soil erosion are major concerns, and ultimately

aggravation of the overall soil physical health deterioration. The most significant processes of

desertification in arid region is observed to be wind erosion.

4. Chemical degradation caused by wide nutrient gap between nutrient demand and supply, high

nutrient turnover in soil plant system coupled with low and imbalanced fertiliser use,

emerging deficiencies of secondary and micronutrients, poor nutrient use efficiencies,

insufficient input of organic sources, acidification and aluminium toxicity in acid soils, salinity

and alkalinity

5. Biological degradation due to organic matter depletion and loss of soil fauna and flora is a key

concern. Soil organic carbon (SOC) and its dynamics are key determinants of soil health and

for the provisioning of essential ecosystem services - however, the SOC content in most

cultivated soils of Rajasthan is less than 5 g/kg compared with 15 to 20 g/kg in uncultivated

virgin soils. Besides the subtropical environment that aggravates SOC losses in the sub-

continent, intensive tillage, removal/ burning of crop residues and mining of soil nutrients

under intensive cropping systems contribute significantly to such SOC losses. Other crop

management practices that could have enhanced SOC content, such as field application of

farm yard manure (FYM) and other organic manure or green manuring are limited.

6. Soil pollution due to air and water pollutants arising out of burning of fossil fuels and industrial

emissions and urban and industrial waste water and water polluted by agrochemicals is

causing chemical contamination. Excessive use of heavy machinery for cultivation and

harvesting and intensive cultivation in conjunction with low organic inputs are responsible for

loss of soil structure and consequent compaction.

208

Climate change is increasingly being acknowledged as a growing challenge for maintaining soil health.

With global warming, rainfall levels are expected to decline in many places, and/or to occur in more

intense events, and evaporation and transpiration rates are projected to increase. These changes will

reduce the availability of soil moisture for plant growth. The higher temperatures will also increase

the rate of SOM decomposition (mineralization), especially near the soil surface, which will affect the

soil’s potential capacity to sequester carbon and retain water.

Sustainable crop, grazing and forest systems contribute to soil health. These principles are gaining

importance in an increasingly variable climate regime. As noted above, there will be an increasing

pressure on land to produce more food in the coming days. There also will be competing demand for

land. The section below outlines actions required to ensure soil health in Rajasthan.

Soil health for climate change adaptation/ mitigation and enhancing resilience

There are already proven soil management practices that can help farmers adapt to the likely adverse

effects of increasing weather variability and climate change48. These practices also often reduce GHG

emissions from agriculture49 and build resilience in farming systems. Widespread adoption of these

practices has the potential to make major contributions to the achievement of national food security

and development goals. There is a need to assess and provide incentives for the adoption of systems

with the greatest production, mitigation and adaptation potential (win-win-win). The following below

provides the basic soil principles for climate change adaptation and mitigation.

Soil principles for climate change adaptation and mitigation, and enhancing resilience

Assessing the status of soils

Knowing the status and condition of soils and their properties is fundamental for making decisions

about sustainable soil management practices that contribute to climate-smart land use. In this

respect, it is crucial to carry out soil assessments and undertake the analysis and mapping of data and

information through soil surveys, including in-situ visual soil assessments (FAO, 2008). These surveys

48 FAO (2013) Soils and their Management for Climate Smart Agriculture. In Climate Smart Agriculture Source Book. Rome 2013 49 While other GHGs may be affected, most agricultural land management activities target only one of the three major gases: CO2, by sequestering carbon in the soil;

N2O, by reducing emissions; and methane (CH4) by reducing emissions or increasing their uptake in the system

209

should involve land users and be supported by technical experts. In addition, they need to be backed

up by laboratory testing for specific properties. Various conventional and digital mapping tools should

be used to extrapolate the findings across a range of soil and terrain units, vegetation types, and/or

agro-ecological zones. Ideally, soil information will be made available as continuous maps that

emphasise soil’s attributes. Visual soil assessments should also involve land users and be supported

by technical experts to assess physical properties (texture, structure, water holding capacity,

dispersion) and chemical properties (ph, nutrients, salinity). For quantitative chemical

characterizations soil test kits are available.

The current initiative on SHC is a case in pointer where soil health is not being perceived holistically

that includes physical, biological and chemical attributes. The focus is on chemical analysis while the

need is for moving beyond this parameter. The current practice of collecting a single sample from a

wide area as a representative is another serious drawback of the scheme, as noted above. Besides,

States lack adequate testing facilities and therefore it is possible that the huge numbers of test reports

being generated in a very short timeframe may be unreliable. This was reiterated by most experts that

were consulted during the course of this study.

Preventing land conversion and protecting vulnerable lands to high SoM losses

Intensive land uses are expanding into areas where SoM is low. For example, semi-arid grasslands,

tropical rainforests and wetlands are all being converted to arable land at an increasing rate.

Assessments of land resources are needed to understand trends in land conversion; the type, extent

and severity of various land degradation processes; and the extent and effectiveness of existing

improved or sustainable land management measures. Such assessments will identify hotspots and

bright spots in terms of land degradation (soil, water and biodiversity) and climate change. Land use

planning can then be used to determine suitable land uses and provide policy support or incentives to

reduce land conversion and promote the adoption of sustainable practices. However, currently

policies do not take on board this aspect during land use planning.

Preventing and mitigating land degradation

Degraded soils are vulnerable to further damages by biotic, abiotic and climatic factors due to serious

losses of SOM and soil biodiversity, greater soil compaction and increased rates of soil erosion and

landslides. Land degradation also is a major cause of climate change and it is estimated that land use

and land use changes account for around 31 percent of total human-induced GHG emissions50.

Various sources suggest that about 5-10 million hectares globally are being lost annually to severe

degradation.

Declining yields (or increased input requirements to compensate) are likely over a much larger area in

future. Unsustainable cropland management practices that are degrading soils include: continuous

cropping with reductions in fallow and rotations, repetitive tillage and soil nutrient mining, pollution

from excessive use of pesticides and fertilizers or human and industrial waste, which are reducing the

productive capacities of the croplands.

There is a need for greater policy support and investment in identifying and promoting appropriate

production systems and management practices that simultaneously reverse or minimize degradation,

conserve above - and below- ground biodiversity, sequester carbon, reduce GHG emissions and at the

same time ensure sustained productivity.

50 Scherr, S.J. & Sthapit, S. 2009b. Sustainable land management in Africa. TerrAfrica Climate Briefs No. 1 & 2

210

Controlling soil erosion

Soil erosion is a widespread and serious degradation process. Intense rains can cause devastating soil

erosion on cultivated lands on moderate to steep slopes where runoff rates are high and the ground

has inadequate vegetative cover. Studies have identified tillage-induced soil erosion as the major

cause of the severe soil carbon loss and soil translocation on upland landscapes. Even on gradual

slopes, alkaline soils may suffer from dispersion or crusting that will increase soil erosion risk. Runoff

and resulting soil erosion can be substantially reduced through the adoption of minimum to no- tillage

techniques combined with optimizing soil cover (cover crops, residues, mulch).

On steeper slopes, soil erosion can also be reduced by planting cross-slope vegetation; using soil and

water conservation structures, such as terraces, earth bunds and tied ridges to optimize water capture

and infiltration; and creating grassed waterways to convey excess water safely off the slopes.

Increased incidence of windstorms could also accelerate soil erosion as the blown sand may be

deposited on productive land or sand dunes may encroach on these lands. Measures to reduce erosion

by wind include optimizing vegetation cover with drought-resistant species, using rotational grazing

to sustain rangeland vegetation quality, and planting windbreaks perpendicular to the prevailing

winds.

Improving water storage

Water storage in the soil depends on many factors, including rainfall, soil depth, soil texture (clay

content) and soil structure. Soil management can influence rainwater infiltration and the capacity of

the soil to reduce soil water evaporation and store water in the soil. Groundcover management can

have highly beneficial effects on soil surface conditions, SOM content, soil structure, porosity, aeration

and bulk density. Improvements in these properties influence infiltration rates, water storage

potential and water availability to plants. These improvements also increase the effectiveness of

rainfall and enhance productivity. They also reduce rates of erosion, the dispersion of soil particles

and the risks of waterlogging and salinity in drylands. Within the soil matrix, stable forms of organic

carbon, such as humus, can hold up to seven times their own weight in water. Estimates suggest that

an increase of 14.4 litres (almost two buckets) of extra water could be stored per square metre in the

top 30 cm of soil for every 1 percent increase in the level of SOC. On one hectare, that is equivalent to

an additional 144000 litres of water51.

Sandy soils are inherently permeable and in hot, dry areas, evaporation rates are high and organic

matter breaks down very quickly. For these reasons in drylands and coarse-textured soils the

accumulation rate of organic matter is expected to be lower. Crop management systems that reduce

soil disturbance (e.g. ploughing and hoeing) and bring about a high accumulation of organic matter

should be introduced. Mulching is a simple technique that buffers soil temperature and helps the soil-

crop system reduce evaporation and the mineralization of organic matter. Mulching also counteracts

the nutrient loss.

Precision farming is a more sophisticated management strategy based on observing and responding

to intra- field variations to optimize returns on inputs while preserving natural resources. For example,

precision agriculture is used to optimize the quantities of water and nutrients required by providing

these inputs directly to the plant when needed through scheduled sprinkler irrigation or drip irrigation

51 Jones, C.E. 2006a. Soil carbon’s impact on water retention. In, Soil, Carbon and Water blog. Border Rivers-

Gwydir CMA, Grain & Graze ‘Practical clues for pasture cropping’ workshops. (available at http://soilcarbon- water.blogspot.it/)

http://soilcarbon-/

211

systems. Implicit in this type of management is an increased level of knowledge of crop requirements

and local soil, terrain and climatic conditions (e.g. soil, slope, aspect).

Improving soil structure with organic matter

Many clay or loamy soils are compacted due to repetitive hoeing or ploughing. In mechanized systems,

soil compaction is caused by the passing of heavy machinery through the fields for tillage. Compaction

reduces airspaces in the soil and decreases the penetration of plant roots. Only stronger roots can

penetrate the soil. The growth of lateral roots or fine root hairs, which are important for moisture and

nutrient uptake, is restricted. Compacted soils and shallow soils are seriously affected by dry spells

that limit root growth and the plant’s access to moisture and nutrients. Subsoiling52 to break up

compacted layers can have a huge beneficial effect on root growth and soil productivity.

Prevention measures should be adopted to avoid soil compaction. Another example is minimum-

tillage in combination with a plant or litter cover. Providing organic matter through plant or litter cover

enhances the activity of soil fauna (e.g. earthworms and termites). The burrowing of these soil

organisms breaks up compacted layers and incorporates SOM from the surface into the soil. Also,

specific cover crops with strong roots such as radish or pigeon peas can be used to penetrate and

break up compacted soils layers. In time, practices such as conservation agriculture (that combine

minimized soil disturbance with increased soil cover and crop diversification) will allow SOM to build

up and increase the soil’s resilience to climate change. Such practices build up a cover of protective

vegetation or litter that foster the biological-tillage activity of macro-fauna (such as earthworms) that

burrow and make channels for air and water. These practices also incorporate and break down organic

matter in the soil.

Managing soil organic matter for soil carbon sequestration

Soil carbon stocks and the mitigation potential they provide depend on the agro-climatic zone, the

land use type and the intensity of use. The rate of SOM decomposition and turnover depends primarily

on the combined effects of the soil biota, temperature, moisture and its chemical and physical

composition. It is also affected by the previous land use and natural resource management practices

(particularly the mechanical disturbance of the soil).

Tillage-based agricultural practices over the last 50 to 100 years, which are associated with soil

degradation, have caused SOC levels in many regions to decline by one to three percent. A three

percent loss in SOC not only represents a significant loss of water storage (432 000 litres per hectare)

but also represents nearly 400 tonnes of extra CO2 per hectare emitted into the atmosphere. Loss of

SOC and water holding capacity is associated with practices such as the elimination of perennial

groundcover, repetitive cultivation or continuous grazing, bare fallows, removal of crop residues and

grassland burning.

The monoculture of cash crops and the high use of external inputs have been an approach that farmers

have adopted to achieve the highest possible yields with minimal labour. However, the production of

energy-intensive mineral fertilizers and pesticides is a major source of GHG emissions. Moreover,

when incorrectly applied, these inputs leach into water resources and the resulting water

contamination has serious deleterious effects on ecosystems and human health. Diversified crop

rotations and improved techniques for the management of fertilizer, seeds and pesticides can make

the application of inputs more efficient. This reduces the wastage of external inputs and thereby

52 Subsoiling, or ripping, is soil preparation treatment done with tined implements to break up hardpans

without turning the soil upside down (see FAO, 2012c for more details)

212

reduces the amount of inputs needed. By improving soil structure and increasing soil biodiversity,

no-till cultivation and the control of soil compaction will also reduce GHG emissions, which result

mainly from anaerobic soil conditions.

Boosting nutrient management

With agricultural intensification, organic fertilizers (manure, compost and plant residues) are

increasingly supplemented by inorganic or synthetic fertilizers, which provide required crop nutrients,

including:

• Macronutrients (e.g. nitrogen, phosphorus, potassium, calcium, magnesium and sulphur); and

micronutrients (e.g. boron, chlorine, copper, iron, manganese, molybdenum, zinc and nickel).

• Mechanized systems emit considerable GHG emissions as does the manufacturing and processing

of synthetic nitrogen fertilizers. In 2007, the global emission of GHGs from the production and

application of nitrogen fertilizers amounted to 750 to 1 080 million tonnes of CO2 equivalent, or

about one to two percent of total global GHG emissions53. It is important that the fertilizer

industry recognizes that it contributes directly and indirectly to emissions of GHGs, particularly

CO2 and N2O, through the production, distribution and use of fertilizers.

• Nitrogenous fertilizers are the most widely used fertilizers and deliver huge benefits in terms of

productivity, especially in nutrient-depleted soils. However, these fertilizers also have a high

potential for environmental damage in terms of GHG emissions and nitrate pollution.

• There is a need for policies and practices that leads to achieving greater efficiencies in fuel use for

mechanical field operations and irrigation; making changes in the rates, timing and type of

nitrogen fertilizer applications; using slow release fertilizers that control the formation of nitrates;

and adding nitrification inhibitors containing ammonium to fertilizer. These practices will help

synchronize the demand and supply of nitrogen.

• Agronomic management can also control the biological processes that cause nitrate leaching and

produce GHG emissions. Cropping patterns should provide enough structural carbohydrates (e.g.

lignin) along with nitrogen to allow the nitrogen produced from decaying surface residues to be

released slowly and contribute to the growth of the following crop while minimizing losses.

• There is common consensus that zero tillage and conservation agriculture systems will

considerably reduce nitrate leaching. This is because, unlike mechanical tilling practices, zero

tillage and conservation agriculture leave the soil undisturbed, which decreases mineralization

and the subsequent production of nitrates. Cover crops take up the nitrogen and reduce its loss

from the soil. At the same time, unused mineralized nitrogen remains distributed within smaller

pores and is not washed out of the soil. However, where no-till is used without cover crops and

with herbicides to manage weeds, the effects on nitrogen uptake and reduced leaching, as well as

on yields, may be less evident.

• The positive effects of the above principles will be optimized and losses minimized by integrating

soil-crop- water management practices, identifying the spatial variability within the given land

area and fields, and using precision-farming techniques to apply fertilizer and water in ways that

are highly efficient and site-specific.

53 Niggli, U., Fließbach, A., Hepperly, P. & Scialabba, N. 2009. Low greenhouse gas agriculture: mitigation and

adaptation potential of sustainable farming systems. Rev. 2. FAO. (available at ftp://ftp.fao.org/docrep/fao/010/ ai781e/ai781e00.pdf)

213

Integrated soil-crop-water management

The sound management of soil-crop-water interrelations can increase SOM levels, improve the soil’s

nutrient retention capacity and enhance soil biota. This integrated management can provide optimum

physical and biological conditions for crop production (food, fibre, fodder and trees). In cropping

systems, good management practices would include:

1. Direct seeding (no-tillage); improved protective soil cover through cover crops, crop residues

or mulch; and crop diversification through rotations (e.g. incorporating deep rooting plants

and perennials pasture leys for integrated crop-livestock systems);

2. Burning of crop residues must be avoided;

3. Integrated soil fertility management (inorganic and organic) to alleviate the problem of low

nutrient retention capacity, which is more pronounced in tropical and subtropical soils where

there is a quick turnover of SOM and organic compounds. Agronomic systems should be

adopted that increase the protection of carbon and nitrogen from rapid mineralization.

Integrated soil fertility management is a strategy used worldwide in intensified cropping

systems to combine inputs of organic matter (mulch, compost, crop residues, green manure)

with fertilizers to address or prevent macro- and micro-nutrient deficiencies;

4. Precise management of nitrogen. The recycling of nitrogen on the farm by using manure and

nitrogen fixing plants is the predominant technique used in organic and low external input

agriculture to enhance soil quality and provide nutrients. When using this technique, proper

timing and management are essential. Nutrients need to be delivered to the plant in times of

peak demand. Organic and green manures, as well as nitrogen from legumes, can be managed

very precisely through crop rotations that include cover and catch crops;

5. Chemical free weed management practices;

6. Physical conservation structures (such as bunds, drainage);

7. Irrigation, partial irrigation where needed or possible; and

8. Robust sources of information and extension that are tailored to local conditions.

Water use efficiency and irrigation

Policies that integrate irrigation/ water use with the soil and crop type are absent in India. These are

important for improving the water use efficiency as well as soil health.

There is an urgent need for policies that makes it mandatory for farmers to improve water use

efficiency. This ought to promote reducing evaporation and enhancing infiltration and moisture

retention in the soil profile through SOM management combined with the use of more drought-

resilient species. Waterlogging from soil compaction, the over-application of irrigation water,

inadequate drainage or soil puddling in paddy rice systems produces methane emissions. The System

for Rice Intensification (SRI) is an excellent example of such approaches.

Irrigation increases crop productivity, particularly in drylands. The decomposition of roots and

unharvested above-ground plant materials increases SOC, which delivers multiple benefits. The

specific context will determine the most appropriate rainfed or irrigated system, as there are trade-

offs that may need to be made. For example, in irrigated systems, a trade-off may need to be made

between reducing fossil fuel use and GHG emissions by using a gravity-fed irrigation and optimizing

the efficiency of water use by using sprinkler or drip irrigation that emit more GHGs because they

require fossil fuels for pumping water and transport.

Addressing soil and water salinity in agricultural landscapes involves reducing salinity and using salt-

affected soils and saline water through innovative soil and water management technologies and

214

practices. Integrated soil and water management practices for adapting to existing soil and water

salinity and mitigating the potential development of salinity include: accurate irrigation scheduling;

permanent raised bed; and soil conservation and management practices, such as reduced tillage, the

incorporation of crop residues, gypsum and manure application, crop rotation and cover crops to

increase soil organic matter, soil water holding capacity and infiltration.

Restoring degraded soils for climate change resilience and increasing crop production

Soils are estimated to have a high potential for carbon sequestration because SOC content can be

effectively conserved and readily restored or increased through appropriate land uses and agricultural

management practices which can potentially be applied at landscape level. The widespread

restoration of degraded soils is vital for carbon sequestration and can be achieved by increasing SOM

content in the soil and reducing erosion and polluting factors. Restoring degraded lands also make

available more land for producing food.

The highest potential for carbon sequestration is in degraded soils. However, initiating the process is

slower on these soils because the soil microbial population that drives the SOC and nutrient cycles

requires specific nutrient ratios that take time to achieve. Soil erosion by water (rainfall and runoff) or

wind can be reduced by adopting appropriate soil and water conservation measures that currently are

being promoted across the country through the various watershed management programmes.

In the recent past, there has been considerable interest in exploring the potential effects of biochar

for improving soil fertility in the longer term. However, in many contexts, because of the prohibitive

cost of biochar, it may not be an economically viable option.

Land Record Modernisation and Digitisation

India ranked 130 in the World Bank’s Ease of Doing Business Index out of 189 countries surveyed in

the year 2016. An important component of this index is the ease of registering property which also

seeks to capture the quality of land administration. India ranked 138th on this, an indication that this

is one of the major reasons contributing to India's low ranking on the overall Ease of Doing Business

index. It is estimated that land market distortions account for about 1.3 percent of lost annual

economic growth and a very large number of land parcels in India are a subject of litigation. In this

context, it has been suggested that conclusive titling be adopted as a way to reduce litigation and

associated transaction costs and improve the “Ease of Doing Business”.

It has been recognized for long that at the very least, existing records must be modernized through

use of technology. After running two parallel programmes on computerisation and modernization of

land records for many years, the Government of India amalgamated these programmes in 2008 into

a new centrally sponsored scheme called National Land Records Modernization Programme (NLRMP).

The NLRMP projected conclusive titling as the ultimate goal of land record modernization. This scheme

has now been renamed “The Digital India Land Records Modernization Programme (DI-LRMP)” and

made into a central scheme. The main aim of DI-LRMP is enunciated as provision of a system of

updated land records, automated and automatic mutation, integration between textual and spatial

records, inter-connectivity between revenue and registration and finally the replacement of the

present deed-based registration and presumptive titling system with conclusive titling including

guarantee of title.

The ultimate objective of the DI-LRMP is to set up a modern, efficient land records management

system in the country with land records updated in real time. The main components of the programme

are:

215

1. Computerisation of the records of rights (RoRs) and digitization of maps to integrate the

textual and spatial data, f

2. Survey and resurvey of land,

3. Computerization of the registration process; and

4. Integration of all these three activities.

Not possessing conclusive titles has a serious impact on farm households who are unable to access

entitlements such as KCC, institutional credit, crop insurance, etc. This was widely observed and

recorded during the field survey in Rajasthan.

Perusal of the state government website on land records reveals that the progress made is rather

slow. The following steps need to be taken to expedite the process:

1. Amendment in registration rules to make the SROs check RoRs and maps before registering a

transfer deed

2. Set standard formats for RoRs to record the relevant data like encumbrances, land use

changes and restrictions, easements rights and accordingly modify e-Dharti software to accept

this data

3. Need for legal provisions to allow cadastral maps to be updated with on ground change – by

moving towards digital maps

4. Integration of registration records and RoRs

5. Need for legal provisions to allow amalgamation of plots to facilitate partition and to reduce

extreme fragmentation of parcels

6. Introduce modern surveying tools -smart-phones with dual- frequency GPS augmentation

system modules and drones

7. Required statutory provisions to record all land use changes irrespective of whether they

require conversion

8. Need for statutory provisions to record encumbrances other than mortgages- land use

restrictions, ongoing litigation, transfer restrictions

9. Deal with shortfall in the number of patwaris

10. Rationalize responsibilities of revenue officials in the direction of land record management

and abolish land revenue collection

11. Ensure availability of technical resources like computers, printers, scanners and internet

connection to facilitate service delivery. In Rajasthan, out of the 527 Land Sub-Registrar’s

Offices (SRO) in the state, 350 (66%), still function without any computerized support January

2018). The balance has some form of computerization ranging from stand-alone systems

performing basic word processing and similar functions to those with internet access enabling

them to undertake some of the functions requiring a link to other data bases to ease the

process of registration.

12. Compensate GPs for administrative costs for sanctioning mutations

13. Impact software training to patwari and LRI level revenue officials

14. Gram Panchayat (GPs) need to be included in DI-LRMP for streamlining the mutation process.

Credit Perusal of the data54 on agricultural credit throws up the following:

54 Reserve Bank of India (RBI), Basic Statistical Returns of Scheduled Commercial Banks in India, various issues

216

1. Even though the number of rural bank branches rose after 2005, that growth did not keep pace with the growth of the rural population. The rural population per bank branch in 2011 was higher than in 1990 or 1995. The reduction of total population per branch was faster than the reduction of rural population per branch.

2. About one-fourth of the increase in agricultural credit in the 2000s was on account of an increase in indirect finance. Such growth did not originate from a growth in the traditional components of indirect finance, such as loans for the supply of inputs and power to agriculture. On the contrary, because the coverage of the term “indirect finance” had been increased to include many activities that did not previously come within its ambit, the expansion of indirect credit was in new areas altogether. From the late 1990s onwards, changes in the definition of indirect finance involved (i) the addition of new forms of financing commercial, export-oriented, and capital-intensive agriculture; (ii) raising the credit limit of many existing forms of indirect financing; and (iii) bringing loans given to corporates and partnership groups into the ambit of agricultural credit.

3. A major driver of growth in agricultural credit in the 2000s was an increase in the number of big individual loans advanced by banks. On the other hand, the corresponding share for loans that were more than Rs. 10 lakh each increased six-fold. Further, very large-size loans, having a credit limit of Rs. 10 crores increased by 37 times in 2011. Clearly, these large loans were advanced primarily to finance the new activities – such as large agribusiness-oriented enterprises – that had been added to the definitions of direct and indirect advances after the late 1990s. In other words, the bulk of loans advanced for agriculture moved away from small, marginal, or medium farmers, and towards large business interests.

4. There was a substantial increase in the share of agricultural credit outstanding from urban and metropolitan branches of banks in the 2000s. Considered together with the evidence on large-size loans, this makes it even more clear that agricultural credit was directed away from the rural areas.

5. Month-wise disbursement data show that a large chunk of the loan is disbursed during the month of March when there is hardly any farming ongoing. This ostensibly points to banks disbursing credit to meet their targets.

6. Investment in fixed capital is closely associated with the disbursement of long-term loans to agriculture. However, after 1991, there was a sharp fall in the share of long-term agricultural loans, and a concomitant rise in the share of short-term agricultural loans, in total agricultural credit. Consequently, the portion of agricultural credit used for fixed capital formation in agriculture became smaller.

The following is proposed for improving access to credit by rural households.

1. Introducing flexible and easily accessible products: Small rural clients prefer to borrow frequently and repay in small instalments; banks could usefully explore the possibility of offering new and more flexible loan products, like those offered by microfinance.

2. The need for composite financial services: While small rural borrowers seek savings and lending services, they also seek insurance (life, health, crop); bank branches in rural areas would do well to explore opportunities to offer composite financial services, as they have begun to do in urban areas.

3. Better staffing policies and doorstep banking: The high recovery rates of microfinance are associated with staffing policies that allow recruiting staff from the local area who understand clients’ needs, and a focus on doorstep banking. State-owned banks operating in rural areas currently do not have the flexibility to recruit staff locally but staffing policies could be revisited. Doorstep banking is costly, but the gains from better recovery and cost savings from hiring local staff in rural branches could well outweigh the higher transaction costs of doorstep banking.

217

4. Improving the Incentive Regime and Promoting Competition Interest rates: One obvious area could be for government to review its policy of setting interest rate caps on rural lending rates and floors on the deposit rates. As noted above, this has the opposite effect of what is intended—poor borrowers are cut off from access and end up paying higher interest rates to informal lenders. Meanwhile, banks face an implicit tax (cost) that is not insignificant.

5. Improving contract enforcement and the legal framework: To encourage banks and other private creditors to lend in rural areas, the government needs to strengthen the legal framework for recovering smaller nonperforming loans (NPL). While the enactment of the securitization and asset reconstruction law (2002) has helped improve the legal framework for recovering bad loans by facilitating out-of-court settlements on NPLs and instituting alternative methods of dispute resolution between creditors and debtors, the law does not cover small loans. Extending the law to small loans would greatly facilitate loan recovery on rural loans, thereby reducing the default risk faced by rural finance institutions.

6. Land titling and registration systems should also be strengthened, restrictions on the use and transfer of land removed, and enforcement mechanisms improved so as to facilitate the use of land as collateral. At present, some 90 percent of land parcels in India are reportedly subject to disputes over ownership which take decades to settle in court. While these are complex issues, a start could be made by efforts to improve the titling and registration process through the automation of land records. Land laws need to be modified to facilitate the development of a free and fair land-lease market.

7. Better credit information would directly increase the amount of financing for rural borrowers by reducing transaction costs and costs related to default risk. A way forward may be for NABARD to consider collecting credit information on micro-borrowers, both groups and individuals. A first step could be to require the NABARD-affiliated financial institutions to provide default information to a central registry. For example, in many rural areas NABARD arranges for farmers to meet informally and share default information among themselves. It would be helpful if this information were kept electronically and made easily accessible.

Crop Insurance

The PMFBY has been in effect since January 2016, and due to the limited number of data period, qualitative assessment can complement the performance exercise. National Bank for Agriculture and Rural Development (NABARD) conducted a study55 before the introduction of PMFBY and identified challenges and proposed a way out. These, for example, were:

1. Infrastructure to setting up of automatic weather stations (AWSs) should receive immediate attention under the financial outlay of Rural Infrastructure Development Fund of concerned state governments.

2. Lack of coordination among important stakeholders can be resolved by optimal functioning of State Level Coordination Committee on Crop Insurance.

3. Involvement of farmers by constituting crop insurance associations as “mutual relief associations” at village level could enhance voluntary participation of farmers in crop insurance.

4. Further, unit of claim settlement should be individual farmers in all cases of perils, be it localised or non-localised/ universal.

5. Also, the expedition in the settlement of eligible claims remains a major challenge. Most of these challenges that NABARD had identified before the launch of the PMFBY remain in the case of Rajasthan. The sanction under RIDF to Rajasthan is largely meant for rural drinking water supply, strengthening/ rehabilitating rural roads, and modernisation of irrigation projects. No additional funds have been allocated for setting up AWSs. Farmers are not organised into groups for

55 https://www.nabard.org/hindi/InterviewsStories-article.aspx?id=25&cid=553&NID=15

https://www.nabard.org/hindi/InterviewsStories-article.aspx?id=25&cid=553&NID=15

218

de-risking agriculture or facilitating easy access to insurance facilities. While the unit of claim settlement theoretically remains the individual farmer, the assessment of damage and claim settlement follows the trends of the earlier versions of crop insurance. The primary survey reiterates these findings by reporting an abysmally low penetration of PMFBY in the sample districts. NABARD also suggested an approach to effectively implement PMFBY which is reproduced below.

1. Form Village Level Farmers’ “Mutual Relief Associations” (Tier-I) All farmers within a village may be guided to form Associations and be networked through internet facility made available in village. Farmers’ Association would be an organization for a specific purpose that is Crop Insurance. The association itself would carry out most of the insurance operations at lowest level on its own (make informal mutual relief contracts among farmers, provide farmers with crop loss prevention guidance, select leader of the next tier Federation, communicate farmers’ needs to the upper tier (Federation), collect premium from all farmers, retain a portion of the premium as fee and in the form of deposit, carry out loss prevention activities, etc.). The purpose of such an association at the village-level as suggested by NABARD would ensure a higher coverage of farmers under crop insurance. Collectivisation also allows hedging of risk. This is a key element that was found missing in Rajasthan. The secondary data on coverage of farmers in Rajasthan appears much better than many other states but this needs to be improved and aimed at covering cent percent farmers. At present, the insurance companies are not very visible in the villages. Outsourcing this task to farmers at the village-level is a sensible way to improve coverage.

2. Form “District Federations” of Farmers (Tier-II) Tier-II District Federation for Crop Insurance may be established in each district, to be engaged in insurance business. All Village Associations of farmers within district (or block) would automatically become members of the Federation. The Federation may take some part of insurance responsibility of the Associations, when these Associations may not be able to fully cover risks within their areas/villages. Federation may give guidance on request to the Associations on matters concerning agri-extension, adoption of new technology, insect/pest control, and participate in carrying out yield/loss assessment of crops to help state machinery/ institutional stakeholders. District Federations may also arrange technical experts for farmers. If tier-I and tier-II are made fully active in agriculture production support-service (besides doing function of crop insurance) then a major problem of “progressive farming” techniques and technology-adoption may be resolved. Associations and Federations may make use of modern technology, viz., telecom, digital and computer technology, including Kisan Portal (agri-extension), mPortal (for weather forecast message) and Insurance Portal, to modernize farming on “progressive” lines more effectively.

3. Form “State Agriculture/Farmers’ Insurance Association” for Advocacy (Tier-III) State Agriculture/Farmers’ Insurance Association (SA-FIA) at top level may be formed by members from all district level Federations. The main functions of SA-FIA may be envisaged to do advocacy for promoting farmers’ interests (leadership, raising consciousness of Farmers’ Associations to exercise decentralized participatory roles, interaction with State Government), conduct field studies, carry out publicity (of Crop Insurance schemes), and conduct training courses of crop insurance programmes for Associations of farmers in each village, particularly at initial stage when awareness of farmers on advantages of Crop Insurance is relatively lesser.

219

4. Enhanced Capital Investment for Crop Insurance in States’ Annual Budgets

State Governments may be required to enhance the amount of capital budgeted for Annual Budget for agriculture and include Crop Insurance as major item of capital expenditure for the infrastructures and premium subsidy. State Governments may take on them financial encumbrance of paying majority of the office expenses of the Farmers’ Associations and Federations (for instance, space in Village Secretariat/Administrative Complex) and significantly contributing in their subsidy premium. With the enhancement of share of State Governments in grants/incomes due to the recommendations of the 14th Finance Commission, it may not be very difficult for State Governments to incur all those expenses cited above to secure economic interests and protection of farmers through more meaningful role of the government in Crop Insurance. Role of public sector spending by State Government clubbed with universal participation of farmers through Associations, conjoined by legal force of a proposed Crop Insurance Law, may ensure truly successful progress in Crop Insurance as a mechanism for risk mitigation by farmers. Here, the performance of Rajasthan during the Kharif seasons in 2016 and 2017 may be noted. It can be seen from the table below that both coverage of farmers as well as the sum insured has drastically reduced, which is not a very good indicator of the performance of the scheme in the state.

Kharif 2016 Kharif 2017

Number of farmers 53.05 lakhs 25.03 lakhs

Sum insured 12,207 crores 9,831.99 crores

5. ‘Agricultural Mutual Relief Fund’

Crop insurance requires dedicated attention towards financial commitment at enhanced level by State Governments for assured protection of farmers. “Agriculture Mutual Relief Fund” may be set up in all States. The “Fund” may be set up by State Governments as insurance credit facility for District Federations, which may require substantial funds to perform various activities related to Crop Insurance, particularly to enrol non-loanee farmers. The contributing sources of “Fund” may be suggested as under: a) Base of the Fund may be constituted as contribution proposed to be made by Village Associations

of Farmers from a portion of money saved and deposited by them based on premium fee collected by them. This financial participation may impart a sense of decentralized participation in the Crop Insurance programme(s).

b) A portion to the Fund may be contributed by enhanced provision of capital expenditure on agriculture in the States’ Annual Budgets.

c) A portion of the Fund may be replenished by State Disaster Relief Fund (SDRF) needed by farmers to supplement ongoing relief operations at village level, by convergence of Crop Insurance scheme(s) with disaster relief programmes/funds.

d) A portion of the Fund may be contributed by share of Corporate Social Responsibility (CSR). Private telecom companies could also be willing to associate with this Fund, through contribution, to help the cause of farmers’ associations for Crop Insurance.

e) A portion of the Fund may also be contributed by banks. Banks’ associating with Farmers’ Associations through this “Fund” may create a virtuous circle wherein farmers may eventually get back to the banks to be linked for credit on voluntary basis, thereby strengthening Credit Inclusion of farmers.

f) A portion of the Fund may be contributed by regulated Agricultural Markets/ APMCs. In addition to the above suggestions by NABARD, it would be worthwhile to consider the following:

220

g) The contribution required to be made by farmers is minuscule. It may be better to do away with this as has been done by the West Bengal state government. It merely adds to the transaction charges.

h) Covering higher numbers of farmers under the scheme cannot be left to the insurance companies and banks alone. The banking correspondents’ role as in the case of microfinance can be explored on a pilot basis for this.

Livestock Sector Rajasthan is the country’s second largest producer of milk (more than 11 percent of total production), but the institutions linking dairy farmers to markets remain weak. In 2014–15, the state had about 14,600 village dairy cooperatives, which procured about 0.92 million tons of milk from 730,000 farmer-members. These cooperatives accounted for 5.5 percent of milk produced in the state, compared to the national average of 10 percent from dairy cooperatives.56 The state’s cooperatives have a total of 18 milk plants, with a total processing capacity of 2.4 million liters per day. There are also 20 privately owned plants, with a processing capacity of 3.4 million liters per day.57 Assuming that cooperative and private processors procure milk in proportion to their processing capacity, the private sector procured about 1.3 million tons of milk in 2014–15. Together, the organized sector procured 13 percent of the total milk produced. Markets for small ruminants are underdeveloped. The state has only two registered slaughterhouses, which indicates that most goats and sheep are traded live and slaughtered outside the state, depriving farmers of the benefits of value addition. Value chains for small ruminants are yet to develop. A major challenge is the dispersion of smallholder producers which makes aggregation a challenge, and in a market dominated by intermediaries at the low end of a long value chain, the farmers are unlikely to secure a significant share of the value of the final product delivered to consumers. Although animal health infrastructure has improved, the breeding infrastructure in the state is poor with only two frozen semen centres and 4500 AI centres. The extension system for delivery of livestock services is poor. The animal health services concentrate on curative treatment rather prophylactic control. The following steps can help improve the standing of the livestock in Rajasthan.

1. Public expenditure in the livestock sector should increase in real terms to match the contribution of the sector to GDP. Also, expenditure should be prioritized and rationalized for more effective utilization and impact. Public expenditure on research, education and training in the sector should be significantly increased and imbalances in research resource allocation between species and research themes should be corrected on the basis of careful assessment of the potential for development in each case.

2. Appropriate policy and incentive structures need to be created to attract both public and private sector investment. In making policy and investment strategy, potential and comparative advantage of each lagging district in different commodities ‐ dairy, poultry, ruminant meat, hides and skins ‐ should be objectively assessed and prioritized rather than trying to develop everything in each district. The objective should be to integrate better supply response in the lagging regions with growing demand in the leading regions. Current policy bias to dairy and large animals should be balanced by giving priority attention and support to small ruminants and backyard poultry which plays a critical role in the livelihoods of the poor.

56 National Dairy Development Board (2015). 57 GoI (2014).

221

3. A dual production structure is emerging in the state. In the poultry sector, industrial production systems are expanding at a fast pace even though household poultry remains a major source of supply. In ruminant production systems, smallholder systems dominate and will remain so for quite some time though some signs of scaling up in dairy are evident. With growing scarcity and competition for natural resources, the sector dominated by smallholder producers must produce more efficiently and sustainably to profitably compete in a price and quality conscious market. That requires special attention to technology, institutional, and policy measures in support of breeding, feeding, animal health, market and credit access by smallholders.

4. Feed constraint will limit the potential gains from any genetic improvement because of strong complementary relationship between genetics and nutrition. Feeds derived from smallholder mixed farming systems will be inadequate in quantity and quality to sustain productivity growth from a genetically improving herd. While demand for manufactured concentrate feed is expected to increase with commercialization and scaling up of production enterprises, other avenues for improved feed supply e.g. green fodder production, choice of food-feed crops in farming systems, choice of dual purpose cereal varieties, treatment of crop residues, facilitating feed market development, better management of common property resources should continue to receive attention depending on their relative importance in various states. Environmental consequences of various feed production and supply strategies and feeding systems should also receive due attention.

5. Productive potential of animals depends crucially on the animal health system which has a poor performance record. The quality of livestock support services remains inadequate and poor, and disease surveillance, control, diagnostics and reporting continue to be weak. It is necessary to take serious steps to improve animal health and extension support systems (including identification and traceability), identify areas of public and private investment, institute private sector friendly policies, and reform public service delivery systems to become more efficient and responsive.

6. Substantial investments are required in setting up market infrastructure that can support efficient distribution of livestock products. A large proportion of the investment will necessarily come from the private sector but, while encouraging private investment, measures will need to be put in place to improve the bargaining power of smallholders and to absorb downside production and market risks faced by them. This will require policy and public investment support in favour of producer organizations, risk mitigation (insurance, compensation, etc), reputation building through labelling or branding programmes, and improving access to information with respect to pricing and product quality. It is essential that new and durable systems such as modern co‐operatives, efficient contracting and efficient procurement by private players for the local settings be developed. In order to ensure that these arrangements are not exploitative rather are based on win‐win partnerships between the organizations and the primary producers of livestock products, proper regulatory measures need to be made.

7. Demand for better livestock products in terms of quantity, quality and variety is expected to increase very rapidly but livestock production and marketing systems remain relatively unorganized, except for a few pockets of modernization. There is therefore great need to promote use of scientific and modern practices by the smallholders in the production of livestock products that are of the quality required by the processors and marketers for the domestic and international markets.

8. Access to credit and insurance services should be enhanced significantly as finance is a major constraint for investment in improved technologies and risk is a deterrent for investment. The bias of credit and insurance programs towards larger farms and high yielding animals creates inherent disadvantage for the poor and smallholders. Such lending might reasonably be

222

shifted to the private sector, and fresh approaches devised for using public funds to better support integration of the lagging regions.

9. Expansion of industrial production systems in the poultry sector and scaling up of dairy farms in the Rajasthan are already showing signs of environmental degradation, which will not only impact long term sustainability but will also impact competitiveness in the short to medium run by raising feed costs. These changes are expected to contribute to rising average global temperatures and climatic variability. Therefore, a major policy choice for the medium to long run is to make livestock development efforts within the framework of environmental sustainability by maintaining the dominant role of smallholder production systems and upgradation of indigenous breeds in responding to rising demand by promotional and regulatory measures for making it more sustainably productive.

10. Invest in people for sustainable development - reform the university system to turn out professionals with the capacity to support the aggressive changes the sector needs; invest in hands-on, knowledge-based, vocational training, taking training into the field (to allow more farmers and their families, especially women, to participate), tapping into global knowledge; gear up R&D including more global partnerships to reduce the knowledge gap and deliver enhanced services and support to farmers.

11. Lastly, the ban on sale of animals for slaughter must not be allowed as it will cripple the livestock sector. Also, the bill banning the slaughter and exports to other state of camels needs to be revisited.

Developing Integrated Value Chains and Promoting Agribusiness

Table Table 90 presents the major production clusters of agro-products in Rajasthan.

Table 90. Major Production Clusters in Rajasthan Wheat Shri Ganganagar, Jaipur, Kota, Hanumangarh, Baran, Bundi

Maize Udaipur, Bhilwara, Chittorgarh, Banswara, Dungarpur, Rajsamand, Pratapgarh

Barley Hanumangarh, Shri Ganganagar, Sikar, Ajmer, Bhilwara

Mustard Alwar, Shri Ganganagar, Bharatpur, Tonk, Sawai Madhopur, Baran, Hanumangarh, Jaipur

Fenugreek Bikaner, Nagaur, Jhunjhunu, Sikar, Jodhpur, Jaipur

Milk Jaipur, Alwar, Bikaner, Sikar

Coriander Seed Bundi, Kota, Baran, Chittorgarh, Jhalawar

Onion Jhunjhunu, Alwar, Sikar, Jodhpur, Jaipur, Nagaur

Kinnow Hanumangarh, Shri Ganganagar

Mandarin Jhalawar

Cluster Bean Bikaner, Barmer, Churu, Hanumangarh, Jodhpur, Sikar, Shri Ganganagar

Pomegranate Jalore, Barmer, Chittorgarh

Cumin Barmer, Jalore, Jodhpur, Nagaur

Fenugreek Bikaner, Jodhpur, Sikar, Jhunjhunu, Nagaur

Moth Bean Churu, Bikaner, Barmer, Nagaur

Fennel Nagaur, Jodhpur, Pali, Tonk , Sirohi

Isabgol (Psyllium)

Barmer, Nagaur, Jalore, Jodhpur, Jaisalmer, Chittorgarh

Gautam et al (2017) identified select value chains that are underdeveloped and can potentially

contribute to enhancing income of the rural households. These are (i) spices – coriander; (ii)

horticulture – mandarin oranges; (iii) medicinal plants – psyllium husk; (iv) organics cultivation, and

(v) livestock product – small ruminant meat.

223

Spices- coriander

India is one of the world’s largest producers and exporters of many seed spices. International demand

has expanded, particularly for those spices with unique nutritional and health benefits (e.g., coriander,

cumin, fenugreek, ajwain, and fennel). Domestically, seed spices are used for culinary purposes in

almost every Indian household. Table 91 shows the trends in India’s exports of some of the seed

spices. During 2011–12 to 2013–14, India exported, on average, more than one-fourth of its total

production of chilies and fenugreek, 15 percent of cumin, 10 percent of fennel, and 8 percent of

coriander.

Table 91. Production and export of seed spices in India (000 tons)

Coriander Cumin Fennel Fenugreek Garlic Chillies

Period Prod. Export Prod. Export Prod. Export Prod. Export Prod. Export Prod. Export

2011–12 429 28.1 462 45.5 144 8.1 122 21.8 898 2.2 448 241

2012–13 503 35.9 594 85.6 143 13.8 113 29.6 1260 22.9 1378 301

2013–14 496 45.7 690 121.5 136 17.3 111 35.6 1221 25.6 1376 312

Ave. 476 36.6 582.0 84.2 141.0 13.1 115.3 29.0 1126.3 16.9 1067.3 284.7

Source: Spices Board of India (www. Indianspices.com).

The global production of coriander is estimated at around 600,000 metric tons (MT), with India

contributing about 80 percent of the total production. Global trade in coriander ranges between

90,000–130,000MT. Indian exports are between 5–10 percent of its production. India has a unique

position in the global market, as it is the only producer that has a spring harvest. Within India the

major domestic buyers of coriander seed in India are spice-processing agencies, which consume

around 50 percent of the production; these are mostly located in the southern states and in Delhi.

Rajasthan produces 60 percent of Indian coriander, and has the highest level of productivity, giving it

a cost advantage over other states. The quality is also superior and is internationally acceptable. The

strengths of Rajasthan in coriander are: scale – it has the highest area, production, and productivity in

the country; a suitable climate; and the largest trading center for coriander.

Coriander seed is a rabi crop and is water-efficient relative to wheat. The crop is highly disease-prone

and requires regular care and monitoring.

Mandarin oranges

Three varieties of Mandarins are grown in India – Nagpur Mandarin, Coorg Mandarin, and Kinnow.

The entire crop in Jhalawar is of the Nagpur Mandarin variety. Nagpur Mandarins are harvested twice

a year. The monsoon crop is considered of better quality and forms the majority of the harvest.

The market for fresh oranges is growing annually in double digits. However, production of oranges is

limited to Nagpur in Maharashtra and Jhalawar in Rajasthan. Opportunity exist to increase farmers’

incomes through scientific orchard management, supported by adequate post-harvest and logistics

infrastructure. The Government of Rajasthan is collaborating with Israel on the proper development

of orchard crops. It established two Centers of Excellence (CoE) with technology support from Israel.

These CoEs provide planting material and on-farm training to farmers in the region.

224

In April 2014, the Nagpur Mandarin variety was awarded a Geographical Indication (GI) tag, opening

the door to branding it as a unique product in the domestic and international markets.

Medicinal plants – psyllium husk

Western India is the largest producer and exporter of psyllium husk in the world. Both the husk (dried

seed coat or epidermis) and the dried ripe seed of ‘ispaghula” are used as bulk-forming laxative

medicinal ingredients for drug products relieving constipation.

The diet fibers extracted from the plant possess pharmaceutical properties and can be used in

producing low-calorie food. These physical properties, along with its status as a natural dietary fiber,

may lead to increased use of psyllium by the food processing industry. Technical-grade psyllium is

used as a hydrocolloidal agent to improve water retention for newly seeded grass areas, and to

improve transplanting success with woody plants. Psyllium mucilage is used as a natural dietary fiber

for animals. The de-husked seed that remains after the seed coat is milled off is rich in starch and fatty

acids and is used in India as chicken and cattle feed.

Rajasthan is one of the main isabgol-producing states of India. The state ranks first in terms of area

and production in the country. Isabgol thrives well in warm temperate regions and requires cool and

dry weather during its crop season, hence it is generally sown during winter months. It can be grown

well in saline soils with poor-quality water in western Rajasthan as a rabi crop. Its water requirement

is low compared to traditional crop, making it suitable for such areas. Current yields are about 530 kg

per ha, but frontline demonstrations using improved technology and extension services have shown

yields of over 1200 kg per ha.

Organic cultivation

Organic, sustainable, and non-pesticide agriculture is moving from an “alternative” approach to

greater acceptance in the “mainstream.” National research institutes as well as universities are

increasingly generating knowledge and technology on organic inputs. Rajasthan’s varied soils and

climatic zones favor the cultivation of several herbal and medicinal plants such as isabgol (psyllium),

amla (gooseberry), and aloe vera; and animal products such as camel milk, the demand for which has

grown at a rate of 8–10 percent per year because of the cost-effectiveness of producing these

products as well as increasing awareness of their health benefits. The global market for medicinal

plant products is estimated at US$60 billion per year, with India only accounting for a 2.5 percent

share.58 This demand is projected by reach US$7 trillion by 2050. This exponentially growing demand

is an opportunity for Rajasthan’s farmers to diversify their production portfolio. The state also has the

country’s largest population of camels, the milk of which is rich in iron and Vitamin C and is useful in

the management of diabetes and high blood pressure.

Growth in the organic sector in the past was mainly export-led, with active support from the

government and Agricultural and Processed Food Products Export Development Authority (APEDA).

In recent years, rising domestic demand has spurred the expansion of organic production, and several

national and local retail and distribution models emerged, supplying produce ranging from certified

organic to near-organic to non-pesticide treated. The Indian organic market is expected to reach

58 Marichamy et al. (2014).

225

US$1.3 billion by 2020, up from US$3.5 million in 2014. At least 25 e-commerce platforms and general

grocery platforms are already selling organic products.

In addition to certified organic products, the market for sustainable and safe food is huge and

increasing. Such foods include produce like non-certified organic, near-organic, synthetic pesticide-

free, and pesticide-free, among others. Most of these products are bought based on trust, whereby

the buyer knows the farmer, individual retailer, or retail shop well and trusts the seller. Some brands

in the noncertified sustainable produce market are emerging. Much of this market is unorganized and

even the organized segment has scale potential as the organized players expand their products and

marketing efforts.

India produced about 1.35 million MT of certified organic products in 2015–16. Rajasthan stands third

among all states in terms of organic certification. Rajasthan has immense potential to offer a wide

range of crops and processed foods that are in the organic and safe food category. Besides the huge

potential for organic soy – both oil and animal feed – potential exists for organic guar, cereals, etc.

The state leads in the production of many spices and medicinal plants that inherently require high

standards of cultivation, low or no use of chemical inputs to maintain purity, and hygienic post-harvest

practices. These crops are also of high value and have an existing international demand. Organic

cultivation of spices and medicinal plants not only enhances the price realization for the value chain,

it also creates value across the chain.

Small ruminant meat

Rajasthan is well placed to respond to the rapid growth in the consumer demand for meat in India

over the next 30-50 years. For cultural and religious reasons, the demand for meat is predominantly

for small ruminant meat (goat and sheep) and poultry. Rajasthan has huge population of goats and

sheep, raised primarily for meat, which are well suited for the arid and semi-arid climate of large parts

of the state. Not surprisingly, livestock have historically been an important form of insurance against

climatic shocks (mainly droughts) to stabilize rural livelihoods.

The growing demand for meat presents a major opportunity to develop markets for small ruminants

with investment in slaughterhouses and efficient value chains. The current production and marketing

systems are local, community based, and rudimentary; the value chains are poorly developed; and the

state has negligible processing capacity. Livestock is traded primarily as live animals to be slaughtered

outside the side, mainly in Delhi, losing an important opportunity for value addition and employment

creation within the state. Further, markets for live animals are unorganized and dominated by

itinerant traders.

The small ruminant production systems need to be modernized and made more productive. Animals

are raised on grazing lands with little feed supplementation needed for fattening, with little access to

health care and veterinary services. There is also limited use of chemicals; the meat is thus organic

and can be profitably marketed with appropriate labelling, packaging and branding. Traceability and

quality enhancement will become increasingly essential to sell into urban markets, implying a large

potential payoff for investments in animal health and food safety systems.

Animal feed is the most important factor in livestock production, accounting for 70 percent of the cost

of production and 90 percent of animal nutrition. However, Rajasthan faces an acute scarcity of

226

quality feed and fodder. Feed scarcity is likely to become the most binding constraint, not only to

accelerate growth in livestock production, but even to maintain the past solid performance Rajasthan

has experienced. An option to mitigate feed scarcity as traditional grazing areas continue to dwindle

is to import dry fodder from neighbouring states such as Punjab and Haryana that have surpluses but

are generally burned in the field. This requires initiatives by GoR to tie up with private feed

manufacturers to procure and process surplus fodder and transport to acutely feed scarce regions in

the state.

Gautam et al (2017) also identified key commodities that are produced in abundance in Rajasthan and

have a high potential for agribusiness development to transform rural Rajasthan. According to the

authors, Rajasthan has an abundance of raw material, but it is scattered – small individual suppliers

spread out over large distances. As a result, the benefits of the marketing reforms introduced to

modernize the APMC markets have been muted. Other than the Ramganj Mandi (APMC market yard)

in Kota, there are no trading markets specializing in the focus crops.

In contrast the market in Unjha, in neighbouring Gujarat, is one of Asia’s largest trading centre for

major dry commodities like seed spices, castor, ground nut, and psyllium husk. The traditional flow of

raw material out of Rajasthan combined with better infrastructure and availability of risk capital and

regulatory support has led to the development of agro-processing in neighbouring states like Gujarat

(psyllium husk, guar, castor, seed spices, ground nut, pulses, rapeseed/mustard), Haryana/Punjab

(barley, guar), Kerala (spices), etc.

In moving forward, a suggested framework to prioritize areas of focus, similar to the one proposed for

priority crops suggested earlier, is presented in Table 92. The table identifies the 11 different variables

that should be considered to influence the development of agro–processing. The table also highlights

the current status of processing in Rajasthan and lists the leading states/competitors for each

commodity (Gautam et al, 2017).

Ignoring investments in land, a majority of the agro-processing businesses fall in the MSME category,

(i.e., micro, small and medium enterprises). Working capital needs are normally 10-20 times the fixed

capital investments. Due to the high level of mechanization (including handling), labour requirements

in agro-processing are likely to be small, but the overall employment impact may still be considerable.

By stimulating the entire value chain, including the on-farm production, aggregation, intermediate

inputs, and logistics functions, the overall employment in the full value chain is likely to be very high.

Markets are fairly well-developed and branding is visible across most commodities. In the case of pearl

millet, however, an aggressive campaign is needed to build consumer franchise, along the lines of

what has been done in Karnataka, AP, and Maharashtra, with millets being processed and through

aggressive promotion, are now being sold in branded form across major metros in India. These serve

as guiding lights for how Rajasthan may want to pursue breaking into non-traditional markets.

For a given market demand, the typical risks faced by agro processors include –the strength of value

chain linkages (quality and quantity of supply), regulatory consistency (e.g. pulses being controlled

under essential commodities regulations), and availability of working capital.

227

Table 92. Identifying potential agri-business opportunities in Rajasthan

Commodity

Value Addition Potential Capital

Working Capital Labour Water Energy

Auto-mation

Quality Stds.

Dom. Market

Potential

Export Market

Potential

Raj. Supply Chain Devpt.

Leading Processing

State

Raj. Processing

status

1 Guar High Med. High Low Low Med. High High Med. High Med. Gujarat, Haryana

Med.

2 Coriander Med. Low High Low Low Low High High High High Low Kerala Primary

3 Psyllium Husk

High Med. High Low Low Med. High High High High Low Gujarat Primary

4 Pearl Millet High Med. High Low Low Med. High Med. Med. NA Low AP &

Karnataka Primary

5 Edible oil Med. Med. High Low Low-Med.

Med. High Med. High NA Med. Rajasthan Med.

6 Mandarin Oranges

High Med. Med. Low Low Med. High High High NA Med. Maharashtra Primary

7 Pulses Med. Low High Low Low-Med.

Low High Med. High NA Med. Rajasthan Med.

8 Barley High Med. High Low High Med. Med. High High Low Low-Med. Haryana, Punjab

Primary

9 Milk High High High Low High High High High High Low Low

Gujarat, Karnataka,

Punjab, Maharashtra

Primary

10 Meat High High High Low High High High High High High Low Maharashtra Primary

Notes: Value Addition Potential - usage of commodity in nascent state, change of form (seed spice to powder, essential oils, etc.), branding, and byproduct utilization Capital (plant, building, machinery). Low < INR 50 million, Medium <INR 200 million, High> INR 200 million Working Capital - For processing, the chain needs to stock during season & process on demand. Working capital need is 10-20 times capital investment Labour Intensity (# of workers/ton/hour) Low < 1, Medium < 5, High < 10 Water Intensity - amount of water used for processing. Low < half input commodity weight; Medium = input commodity weight; High > input commodity weight Energy Intensity - don’t need any special (high calorific value energy) source Land - usually a function of storage space (raw material & finished goods) and processing space where processing is less than 10% of total space needed. Automation - technology/mechanization potential is high in all commodities. These are locally available & off the shelf international suppliers Quality Standards - High standard would signify developed value chains, international requirements in place. Medium standards would be local (FSSAI norms) Domestic Market Potential - indicates promise of growth and acceptance of value addition International Market Potential - indicates promise of growth, acceptance of value addition and Make in India product Rajasthan supply chain development - readiness of existing producers to develop linkages for value addition

228

Agricultural Marketing Reforms59

The GoI has formulated and circulated a new Model Agricultural Produce Marketing Regulation (APMR)

Act of 2017. The changes proposed in the new Model Act include (a) declaration of whole state/ UT as

one unified market, (b) APMCs to regulate practices only in respective principal market yards and sub-

yards, (c) provision of single state-wide trading license, (d) allowing and promoting private wholesale

market yards, (e) promoting farmer-consumer markets, (f) promoting e-trading, and (g) moving to a

common national market for farm products.

The following strategic reforms need to be carried out at the national and the state’s levels:

1. For effective implementation of MSP policy, (a) MSP purchases should be delinked from

procurement targets, (b) advance arrangements should be made in terms of adequate number

of purchase centres, handling logistics and timely payment to the farmers/ sellers, (c) purchase

operations should continue till the sellers offer their produce at MSP, (d) there should be no

quantity cap on the seller, (e) with a view to reaching the benefits of MSP even to small farmers

of remote areas, large farmers working as aggregators or village assembling traders should be

encouraged to offer the produce at MSP purchase centres, and (f) it should be enjoined on state

governments to be proactive in MSP policy implementation.

2. For effective implementation of Market Intervention Scheme (MIS), there should be a well-

articulated institutional mechanism both at the central and state levels. Specifically, (a) the

Centre (MoAFW) should specify mandated commodities with scope for state and year-specific

additional commodities, (b) there should be an exclusive and dedicated noday officer and cell

at the Centre for approval, and (c) a proactive stance is needed at the Centre to guide the state

nodal agencies to come up with timely proposals, process them speedily and revert to the states

for timely interventions.

3. State and national-level agricultural outlooks on prices, supply and demand for agri-

commodities is a huge gap in planning. These outlooks need to be generated for both short and

long periods.

4. Gautam et al (2017) rightly point out that the current policies to promote agro-processing in

Rajasthan, namely the Agri Processing & Agri Marketing Policy and the state’s RIPS (Rajasthan

State Industrial Promotion Policy), emphasize attracting large-scale investors but with a dual

requirement. They require both a minimum scale of investment and a minimum number of

employees: the Agro-Processing and Agri-Marketing Promotion Policy of 2015 states that

“Enterprises with investment of Rs. 100 crores or more or providing employment to at least 250

persons will now be eligible for availing customized package of incentives & concessions under

RIPS 2014.” Yet, to succeed individual processing plants have become increasingly capital-

intensive. The labour required in a modern, competitive plant is much more skilled, with little

or no manual work (mostly limited to tasks that have not yet been automated, such as loading

and unloading). The requirements for the number of jobs created thus may be an impediment

for a high-end processor, which may in fact eliminate much greater job creation prospects along

the value chains that feed into the large processing plant. This is because, for these large

operations to be viable, they need to depend on reliable and efficient value chains. This can only

come through a cluster of small- and medium-enterprises that add value at intermediate stages

(where possible) which are likely to be more labour-intensive and thus have the potential to

create more jobs than a single large processor might. The implication of this is that the state’s

policies need to be geared towards attracting both large investors as well as large numbers of

59 This section benefitted from a detailed discussion with noted agricultural economist Dr. SS Acharya.

229

smaller entrepreneurs with facilities along the value chains and across the different production

areas.

Agricultural Extension

All the development or improvement at field level means transfer of technology (TOT) and information

communication technology (ICT) to farmers. The mindset of agriculture as just a livelihood means

depended on the vagaries of the monsoon and the fluctuation of market must go. With so much

advancement in science and technology, it is the responsibility of the state to equip its farmers with

means and ways to combat adverse situations and to attain sustainability in their lives.

“Knowledge deficit” was identified by the National Commission on the Farmers as one of major

constraints to agriculture productivity collapse of extension services, fertilizer subsidies leading to

excessive and harmful use of fertilizers and sub-optimal farming practices are some of the results of the

poor access to knowledge. One could add the poor water management as a part of the extension system

to impart knowledge on this.

According to Adhiguru (2009)60 the public extension system has been found to be accessed by only 5.7

percent households. Further, only 4.8 percent of small farmers have access to public extension system

as compared to 12.4 per cent of large farmers. The study has suggested promotion of farmer-led

extension and strengthening of public system extension serious to improve coverage and efficiency of

agricultural information systems.

Rajasthan tried some extension systems in the past but they could not deliver the goods. In the

extension programmes, the emphasis was given to irrigated areas and not much to the rainfed areas till

the watershed development became a major programme. The present agriculture extension system of

the agriculture department largely looks after distribution of inputs like seed, fertilizers, pesticides and

demonstration. The foundations of crop production-soil and water conservation measures are with

Watershed Development and Soil Conservation Department with a separate Head. The deficiencies in

the present-day extension system in the state are:

1. Less qualified grass-root extension personnel

2. Staff tasked with activities other than agriculture

3. Over-lapping of extension efforts owing to multiplicity of extension agencies

4. Extension does not include allied activities like soil and water conservation, horticulture, animal

husbandry, poultry etc.

5. Ecology and silvi-pasture are rarely covered under extension activities

6. There is hardly any organic coordination between the Agriculture Department, Rural

Development Department (Soil & Water conservation & watershed) and KVKs (Research) at the

field level for transfer of technology. Only some classroom trainings are held

7. There is no feedback from the field to make any timely correction.

The following measures are desirable to improve the reach and effectiveness of agricultural extension in Rajasthan. Extension reforms require organizational and human capacity

60 Adhiguru, P (2009) Public-Private Partnership for ICT mediated Agricultural Extension, In: Chandre Gowda, MJ, P Chandrasekara and P Adhiguru, 2009. Technical Papers of National Seminar on Agriculture Extension, Ministry of Agriculture, Government of India, pp 72-76.

230

The key objectives of the extension reform measures in the last 20 years relate to making the system flexible, learning-oriented, adaptive, and sustainable to meet the emerging needs of the farming sector. Reform measures also attempt to increase the participation of the farmers, particularly those farmers left out by other service providers, demand-driven, and accountable to the users. Improving the organizational performance of the extension system is seen as a strategy to achieve the above objectives. Yet, serious constraints related to human and organizational capacity continue to thwart organizational performance of the extension systems While emphasizing the reform of the public-sector approaches to agricultural extension services, there is also a need for nurturing the emergence of innovations from the private sector and the civil society organizations, as well as from the farmers themselves. The importance of group-based extension and reaching smallholder and marginal farmers Increasing productivity of smallholder and marginal farmers who are not effectively reached by the public extension system is an explicit objective of the extension reform measures. These unreached farmers are important from the poverty deduction and rural employment perspectives, and food security and hunger reduction goals cannot surpass smallholder farmers. Smallholders largely remain marginalized by the extension system for several reasons including low education, not being part of farmers’ organizations, and are not reached due to their remoteness. Smallholders are also low searchers for information and cannot afford private extension due to their low-income levels. The importance of partnerships with NGOs to support the development and sustaining of social capital is therefore important and needs strengthening. Technology transfer will continue to be a core focus for the extension system, as currently even this is not effectively accomplished for small/ marginal farmers. Another important way to reach these farmers is that the input and equipment subsidies given by state governments need to reach specific percentages of small and marginal farmers to speed up the technology transfer. Special schemes such as NFSM and RKVY are currently using state extension functionaries for implementation. However, these programs need to be integrated with the challenges of farmers in the local context. Service delivery through these schemes should use farmers’ groups to choose the delivery of new technology and group approaches to repayment from the group and sharing of the equipment should be encouraged. Smallholder farmers face similar problems at the village level in terms of input availability, pest and disease attacks, and marketing and post-harvest issues. Panchayat presidents can play an important role in making extension system accountable. Yet local extension workers are seldom accountable to locally elected officials although this is one of the objectives of the devolutionary nature of decentralization. Monitoring and evaluation systems to go beyond process monitoring Monitoring and evaluation (M&E) systems that are in place only collect information of the process and the reaching of the targets in terms of the activities. Yet such information is not adequate for monitoring the process of specific objectives of reform such as decentralization, convergence, and linkages. Further the current monitoring system does not give due attention to the quality of extension activities. M&E system is currently only target driven and focuses on the activities planned for the year being carried out as planned such as number of farmer demonstrations per month. It needs to go beyond the activities and document the benefits of the activities in terms of the outputs and outcomes. Further, use of information from the monitoring system is limited for improving the system through learning and change process. Sustainability of the extension reforms will crucially depend on the learning and change process that is dynamic and evidence-based. Independent evaluators should be asked to generate evidence for the learning and change process.

231

Increasing research– extension linkages in the context of system reforms The National Agricultural Research System has been under constant pressure for the past two decades to improve its organizational efficiency and the relevance of its research to meet the needs of the smallholder farmers. In the last 10 years at least four high-level committees have recommended various measures for restructuring and revamping ICAR. While some of these recommendations have been adopted as part of the last two five-year plans, state level extension reforms in the form of ATMA, have ushered a set of serious directives that have high potential to increase the relevance of agricultural research at all levels. Without such reform measures in the research system that commensurate with the speed of the extension system, achieving the intended goals of the later will be high unlikely. Although the directives for the KVKs, SAUs, and ICAR institutions help integrate their work at the state level priorities identified under ATMA plans, these do not compensate for a large set of reform measures needed to make the research system efficient. Yet, these are significant steps in the right direction. In order to realize the benefits of such linkage the following strategic steps are needed. First, the linkage between the research priorities identified at the district level and the state level plans need to be identified. Further their integration with the research priorities and annual plans of KVKs, SAUs, and ICAR institutes at the state level must be documented and made publicly available. Second, the performance calculation system of the KVK, SAU, and ICAR scientists need to recognize their contribution to improving the extension functions at the district and block levels. Third, scientists responding to extension priorities and those who play the crucial function of translating research from SAUs and ICAR institutions into context and locality specific solutions to farmers’ problems could for a separate cadre to help them in career advancement. Such special categories of “extension scientists” work hand-in-hand with core scientists confined to the laboratories. Finally, there is need for better harmonization of objectives of the national missions which require extension service but designed as a top-down approach, the ATMA platform which aim to make extension demand-driven through participatory bottom-up approach and the objectives and priorities of the research system at district, state, and national levels. Political economy and extension reforms The success of extension reforms will crucially depend on how the state government takes ownership of the reform measures and implement them for treating their own developmental objectives. Improving Export Competitiveness of Agri-products To expand the export basket, it is of utmost importance to first enhance competitiveness and then ensure its sustainability. One of the efficient ways to widen export opportunities is to look at diversification based on value addition. There are two broad methods of export diversification:

• Horizontal diversification, which takes place within the same sector (primary, secondary or tertiary) by adding new products in the existing export basket within the same sector.

• Vertical diversification, which entails a shift from the primary to the secondary or tertiary sector, essentially implying processing of domestic manufactured goods. It entails contriving further uses for existing products by means of increased value-added activities such as processing, marketing or other services.

Rajasthan has limited presence in the processed food segment, which presents a case for capacity building and horizontal diversification in the higher value-added areas of ready to eat food, processed

232

food, health and wellness food products and organic food products, all of which have a huge export potential. A substantial opportunity also exists for vertical diversification of exports. The bigger and dynamic markets of the EU, Canada, South Korea, Australia and New Zealand can be further leveraged by exporters from the State for vertical diversification of agro and agro-based exports. Table 93 details out the productivity capacity of the agricultural sector in Rajasthan.

Table 93. Rajasthan Agriculture Productive Capacity (Lakh Tonnes) Crop 2011-

12 2012-

13 2013-

14 2014-

15 Major Producing Districts

Rice 2.53 2.23 3.13 3.16 Hanumangarh, Bundi, Kota, Ganganagar, Banswara, Dungarpur, Baran

Jowar 4.10 4.20 3.57 4.55 Ajmer, Bharatpur, Pali, Bhilwara

Bajra 63.02 38.39 41.18 45.54 Jaipur, Nagaur, Alwar, Sikar, Karauli, Jhunjhunu

Maize 16.52 18.47 14.64 14.89 Chittorgarh, Bhilwara, Udaipur, Banswara

Wheat 101.61 107.67 110.20 98.69 Ganganagar, Alwar, Bharatpur, Bundi, Baran, Kota, Jaipur, Chittorgarh

Barley 7.89 9.58 9.42 12.07 Jaipur, Ganganagar, Hanumangarh, Jhunjhunu, Nagaur, Bhilwara

Moong 6.47 3.89 5.47 2.34 Nagaur, Jodhpur, Jalore, Pali, Ajmer

Urad 4.32 0.94 1.32 1.27 Bhilwara, Banswara, Dungarpur, Bundi, Jhalawar

Moth 4.47 0.75 0.12 5.06 Churu, Jhunjhunu, Bikaner, Nagaur, Jodhpur, Barmer

Chowla 0.73 0.64 0.73 0.25 Sikar, Jhunjhunu, Nagaur, Jaipur

Arhar-tur 0.15 0.15 0.09 0.10 Banswara, Udaipur, Alwar, Dholpur, Pratapgarh

Gram 9.90 12.77 16.40 12.53 Bikaner, Churu, Ganganagar, Hanumangarh, Jhunjhunu

Masur 0.24 0.38 0.36 0.39 Bundi, Jhalawar, Bhilwara, Bharatpur, Chittorgarh

Sesamum 1.66 1.22 0.72 0.95 Pali, Sawai Madhopur, Karauli, Tonk, Jodhpur

Groundnut 8.05 6.16 9.01 10.24 Bikaner, Jaipur, Sikar, Jodhpur, Chittorgarh, Nagaur

Soyabean 13.85 14.69 9.75 9.73 Jhalawar, Baran, Kota, Chittorgarh, Bundi

Castor Seed

4.30 3.41 2.63 3.09 Jalore, Sirohi, Hanumangarh, Barmer

Rape and Mustard

29.50 37.60 36.22 37.36 Alwar, Bharatpur, Sri Ganganagar, Sawai Madhopur, Tonk, Baran, Kota

Taramira 0.26 0.55 1.76 0.89 Sri Ganganagar, Tonk, Jaipur, Bikaner

Linseed 0.01 0.01 0.03 0.02 Nagaur, Kota, Bundi, Chittorgarh

Cotton (In Lakh Bales)

17.31 15.28 12.87 14.44 Hanumangarh, Sri Ganganagar, Nagaur, Bharatpur

Sugarcane 4.51 4.02 3.63 2.43 Bundi, Sri Ganganagar, Chittorgarh, Udaipur, Rajsamand

Guar Seed 18.48 20.23 28.62 27.96 Hanumangarh, Bikaner, Sri Ganganagar, Nagaur

Over the past several years, the share of major commodities in Rajasthan’s exports has not changed much, with agro and food products being the only exception. The agro and food products sector accounted for 37 percent of Rajasthan’s exports during FY13. However, the crash in crude oil prices and

233

subsequent drag on hydraulic-fracturing has impacted the export of Guar gum from India, which contributed to bulk of agro and food products exports from Rajasthan.

Figure 42. Sectoral Contribution to State Exports (2015-16)

Source: DGCIS. Electronics and software includes IT and ITeS

Agro and food products are among the key export items from Rajasthan, with a share of nearly 9 percent in the State’s total exports during 2015-16 (Figure 42). The major agro products of the state include oilseed, rapeseed, mustard, soya bean, coarse creeds and spices. In 2013, agro and food products were the largest export item for Rajasthan contributing in excess of 37 percent to the total exports from the State.

Growth in the sector was supported by increased exports of guar gum — an extract of guar seeds used

in the petrochemical industry. However, the fall in crude oil prices have adversely impacted this sector,

with the exports falling by nearly five times from Rs. 14,517 crores in FY13 to Rs. 3,094 crores in FY16.

Owing to this, the share of Rajasthan in total exports of agro and food products from India has declined

from 7.2 percent in FY13 to 1.5 percent in FY16 (Figure 43 & Figure 44).

234

Figure 43. Share of Major Sectors in Rajasthan’s Exports (FY09, FY13 and FY16)

Source: DGCIS.

Figure 44. Trend in Export of Agro and Food Products from India and Rajasthan

Source: DGCIS, DGFT.

Since 2013, there has been a marked decline in exports from Rajasthan of all items under agro and food products. Apart from guar gum extract – mucilage and thickeners (HS code 130232) which constitute close to 85 percent of exports in this segment, other items have also registered a fall in export value. Oil cakes (HS code 23) are the second largest export item under this category for the State. The oil cake of rape seed - residue of rape seed / colza seed (HS code 23064990) had an export value of Rs. 230 crores in FY16 — a drastic reduction from Rs. 640 crores in FY15. The major destination markets for extract of

235

rape seed are South Korea, and South East Asian countries (Viet Nam, Thailand, and Indonesia). These are exported from Kandla sea port in Gujarat and ICD Kanakpura.

Cereals (HS code 10) is another segment where there was a significant drop in exports from Rajasthan.

Barley (HS code 1003) and wheat (HS code 1001) exports which were worth Rs. 520 crores in 2015 came

down to Rs. 30 crores in 2016. Other agro and food products that are exported significantly from

Rajasthan include oil seeds (HS code 1207), especially sesame seed oil seed (HS code 120720) and

ground-nuts (shelled) and products (HS code 1202).

Jodhpur and Bikaner are the major areas for the production of food and agro products. There exists

substantial export potential in the areas of fresh vegetables, amla, guava, aloe vera, oil cake, oil seeds,

etc. There are also opportunities for canning, dairying, frozen food, fruits and vegetable, milk and milk

beverages, and soft drinks in the State. However, infrastructure needs to be built to support the same.

Rajasthan also accounted for 30 percent of the total wool production in the country in 2012. However,

its share in exports remains low at the national level.

The major challenges in the agro and food products sector are summed up below.

1. Inefficient Infrastructure: Inadequate cold storage network in Rajasthan renders the agro and food products unfit for exports.

2. Contamination of Products: Lack of awareness amongst farmers, labourers engaged in crop plucking activities and transporters leads to contamination of food items, and makes them unfit for exports.

3. Lack of Awareness among Farmers: There is lack of awareness regarding benefits of rotational cropping. There is also lack of awareness pertaining to organic products which fetch higher value in export market. The organic produce of the State is limited and farmers are mixing it with the normal produce to increase quantity. As a result, the organic produce is being sold at normal prices. Farmers also need to be informed about various export market drivers.

4. Non-Tariff Barriers to trade: NTBs significantly impact the agro and food sector. This still remains

one of the most protected sectors for majority of the trading nations. Some of the key NTBs

faced in this sector are listed in Table 94.

Table 94. NTBs prevalent in Agro, Animal and Food Product Segment Type of Non-Tariff Barrier Imposing

Country Example

Technical Barriers to Trade

USA The Food Safety Modernisation Act (FSMA) makes it mandatory for importers to perform "supplier verification process" which requires FDA inspection of suppliers.

Technical Barriers to Trade

USA Meet import requirements related to grade, size, quality and maturity

Import Licensing, Quotas Restrictions and Prohibitions

USA Certain plant and products, chemicals face import licensing in the US A

The above-mentioned challenges are not unsurmountable. Limited food processing facilities in the state creates a need for investments in processing infrastructure for agro and agro-based industries. Quality labs can be set up to test quality of products and ensure that they comply with international standards and certifications. In the agro and agro-based industry, testing can be undertaken for standards like USFDA, HACCP, etc. The major strength of Rajasthan’s food processing industry lies in the following:

• Nutri-cereals- Pearl millet (Bajra) and other small millets

236

• Pulses- Green gram (Moong), Chick pea, Moth beans

• Seed Spices- Cumin, Coriander, Fenugreek, Ajwain and Fennel

• Medicinal crops- Psyllium (Isabgol), Indian ginseng (Ashwagandha), Satawari, Aloe vera, Senna (Sonamukhi), Indian Gooseberry

• Oilseeds- Mustard, Soybean, Peanut

• Commercial crop- Cluster bean

• Livestock: Drought hardy milch breeds (Rathi, Gir, Sahiwal and Tharparkar)

• Fruits: Mandarin and Kinnow

• Vegetables: Tomato, green chilies, peas, onion, potato, cauliflower, carrot, cabbage, garlic Rajasthan also leads in production of:

• 48 percent production of Mustard in India

• 44 percent production of Pearl Millet in India

• 80 percent production of Psyllium (Isabgol) in India

• 84 percent production of Cluster bean (Guar) in India

• 16 percent production of Coarse Cereals in India

• 80 percent production of Moth bean in India

• 39 percent production of Coriander in India

• 40 percent production of Cumin in India

• 77percent production of Fenugreek in India Given the above, the export potential from a land-locked state still remains enormous. Export-oriented initiatives in the agro-sector that are relatively straightforward to put in place in a short while are presented in Table 95.

Table 95. Agro-export Basket and Potential Markets Through Value Addition Existing Markets Emerging Markets (in addition to Current

Markets) Value Addition including

Technology

Where What is Exported

Where What may be Exported

Vietnam, The USA, UAE, Malaysia, Iran, Bangladesh

Rice, Oil Seeds, Frozen meat, Spices, Tea, Guar Gum, Sugar

The EU, Canada, South Korea, Australia, New Zealand

• Ready to eat food, Processed food, Health and Wellness food products, Organic Food Products.

• Organic market which is estimated at US$ 90 billion in 2015 has witnessed a CAGR of around 12% for last 14 years. Dairy and dairy products, bakery/ confectionery products, ready meals and baby food are the largest categories in the organic packaged food market globally accounting for around 50% of the total organic packaged food market. Other products include snacks, oils, dressings, etc.

• Although India has presence in these emerging product segments, technological, infrastructural and certification issues limit their export. With better infrastructure, technology and an acknowledged certification system, all of which add value, India could compete in these segments.

• Rajasthan has limited presence in the processed segment. This is one area which can be tapped.

• One of the global market leaders in this segment is Brazil which has grown from strength to strength on product diversification

237

supported by proactive institutional structure.

• This will be a case of horizontal as well as vertical export diversification in the State.

In order to meet the above ask, a number of supply-side factors will need to be reinforced. The strategy

for this is proposed in Table 96.

Table 96. Strategy for Strengthening Supply Side Infrastructure Segments Cold Chain

Infrastructure + Warehouse

Inland Container Depots

Multimodal Logistics Hub

Processing Infrastructure +

Technology

Utilities

Agro and Agro based

• Rajasthan is a major producer of spices, Jeera, Aloe vera, Guava, Keenu, Amla and vegetables, all of which can be made into export commodities commanding high export income.

• The production of aloe vera is very high and can be used to attract pharma companies.

• Rajasthan is the second largest producer of spices after Kerala.

• Jhalawar-Kota area has good production of mandarin

To boost the export potential and ensure that the products do not get wasted, network of cold

chain infrastructure

ICDs are currently present in Jaipur, Jodhpur, Ajmer, Hindaun City. The ICDs have to

be utilized effectively and

efficiently; there is a high level of underutilisation of this facility.

• Multimodal transport (also known as combined transport) is the transportation of goods under a single contract but performed with at least two different means of transport.

• A multi modal logistics hubs should be promoted around appropriate areas like Udaipur, Jodhpur, etc so as to provide easy and convenient transport facility to all industrialists and exporters in the region for transferring products to various ports and off takers in Gujarat, Maharashtra, Delhi, etc.

• Fruits and vegetables: preserved, candied, glazed and crystallised fruits and vegetables; juices, jams, jellies, purees, soups, powders, dehydrated vegetables, flakes, shreds and ready-to-eat curries

• Beverages: fruit-based, cereal-based

• Dairy: liquid milk, curd, flavoured yoghurt, processed cheese, cottage cheese, ice cream, milk-based sweets.

Strong power, water, road and rail network needs to be improved in the State. This should lead to the overall logistics of the state being strengthened.

238

and warehouses are required.

Skill Enhancement

As noted earlier, while the share of agriculture in SDP growth has declined rapidly over time, the

agricultural workforce has shown only a marginal decline of 9 percent between 1950 and 2011. This

could be ascribed to two factors: (a) inadequate numbers of jobs being generated in the formal/

informal sectors, and (b) lack of skills to move into secondary and tertiary sectors of the economy.

Table 97. Employment in Organised Sector (Public and Private) Year Public Sector Private Sector Total

2010 9.54 3.21 12.75

2011 9.46 3.38 12.84

2012 9.51 3.55 13.06

2013 9.53 3.70 13.23

2014 9.60 3.86 13.46

2015 9.52 4.00 13.52

2016* 9.54 4.00 13.54

Source: Employment Marketing Information Programme, Rajasthan

Table 97 shows that hardly any growth in employment in the organised sector has taken place since the year 2010. Given this, the importance of the MSME sector in generating employment for unskilled, semi-skilled and skilled workforce gains importance to absorb the rural workforce. This however requires upgradation of skills of workers. It needs to be underlined that there is a chronic problem of unemployment in Rajasthan and the state ranks first in terms of number of unemployed workforce. There have been various efforts towards employment generation but their impact has not been substantial. The economic agenda of Rajasthan focuses on the following four sectors, contributing over two-thirds of the state’s economic output:

Agriculture and animal husbandry Shift in cropping pattern; increase in productivity; develop animal husbandry potential

Mining Strengthening mining infrastructure; Focus on exports; Focus on high value minerals

Manufacturing New industries – attracting MNCs; Further development of select existing industries; Revitalisation of other poor performing industries

Tourism Domestic tourism; increased spending

There are 9 deemed universities and 20 universities in Rajasthan. There are over 1,032 colleges, 51,525 primary schools, 11,606 secondary schools and 6,010 senior secondary schools. Rajasthan’s literacy rate according to 2011 census was 67.06 percent, male and female literacy rates being 80.51 percent and 52.66 percent respectively. Although the female literacy rate has improved over the last decade, it lags behind the national average of 65.46 percent, whereas the male literacy is close to the national average of 82.14 percent. Over 1990s and 2000s enrolment ratio have been increasing but the female enrolment ratios still need to catch up. There are high dropout ratios in the state where only 60 percent of those who enrol in class I are able to reach class VIII.

239

The state government is aggressively pursuing a policy to achieve the goal of universalization of elementary education and the 2017-18 budget has allocated Rs. 20,922 crores to education which is 5.7 percent higher than the previous year. The State Literacy Mission Authority encourages PPP (Public Private Partnership) to strengthen the infrastructure of CECs (Continuing Education Centres). As per census 2011, there are over 2.1 crore main workers in Rajasthan and growing at the rate of 2.08 percent annually. There are an additional 88 lakh marginal workers. The two together translate to a net addition of 6 lakh persons in the workforce every year. Taking backlog of the unemployed persons, around 7-8 lakh new livelihoods need to be created every year. Many of those employed are working at a subsistence level of existence due to emphasis on hiring of casual labour and risky and low income yielding agriculture. As per the Fifth Employment-Unemployment Survey (2015-16), the rate of unemployment in the state stood at 71 (national average is 50). Skill constitutes most important component of non-farm livelihoods. Although, traditionally, the State has been the hub of a variety of skilled persons, viz., weaver, carpenter, blacksmith, goldsmith, plumber, painter, stone carver, barber, musician, singer, potter, tailor, etc through on-the-job training. These people have sustained their livelihoods, so far. But, with the rising cost and competition, these people are facing difficulty in meeting day to day expenditure. The gap between them and the skilled ones engaged in secondary and tertiary occupations is widening. Under these circumstances, it becomes essential for the State to upgrade the skills of existing workers, arrange new and advanced skills sets for unemployed youths and create appropriate employment opportunities to them. The demand for a variety of workers in construction industry, tourism, automobile, trade and commerce, finance, information technology, textile, gems and jewellery and security is growing in the state. Similarly, demand for number of items viz., textile products, stone/ marble artefacts, gems and jewellery, carpets and durries, handicrafts, etc. is growing in the national and international markets. At the same time, only about 1.5 percent of the state workforce in the age group of 16 to 20 years has obtained vocational skills through formal programmes/ courses as against 5 percent of workforce at the national level and 60-90 percent of the workforce of developed countries. This underlines the huge challenge facing the state. The Rural Non-Farm Development Agency (RUDA) was established in November 1995 by the state government as an independent agency to promote the Rural Non-Farm Sector (RNFS) in the state. RUDA follows a sub-sectoral, integrated and cluster-based approach for promoting self-employment for artisan families as viable avenues of sustainable livelihoods. Effective use and abundant availability of local resources promoted RUDA to adopt a focused developmental approach in wool, leather and minor minerals sub sectors. The intervention based on market demands aim at bridging the gaps in the value addition chain by organizing the artisans, skill augmentation, technological development & dissemination, design and product development, credit and market facilitation/ support through organizing fairs and training camps. The artisans also participate in SARAS Mela, Hemtextile Fair New Delhi, Gandhi Shilp Bazars, National Handicraft Expos, IITF New Delhi, Leather fair Chennai, CII Chandigarh, Shilpangan New Delhi, Agha Khan New Delhi, Vastra Jaipur, Stone Mart Jaipur, Stona Bangaluru etc. for marketing of their products. By these activities, sustainable employment is being provided to large number of artisans, weavers, potters, stone sculptors. The impact of these interventions of RUDA can be visualised as a source of alternate avenue of sustainable incomes through self-employment with enhanced capabilities to the participating artisans in core sub sectors like Wool, Leather and Minor Minerals, in drought prone state like Rajasthan. This is a unique organization working in non-farm sectors in India.

240

RUDA has obtained Geographical Indication (GI) Registration for craft like Blue Pottery, Kota Doria and Sanganer and Bagru Hand-block print under its Intellectual Property Rights initiatives. The process of obtaining GI Registration for Pokaran Pottery has been initiated and is in progress with the help of Government of India. The progress made under RUDA are summed up below:

Year Allotment (lakh) Expenditure (Lakh) Target of benefiting artisans Beneficiaries

2012-13 275 275 2500 4386

2013-14 378 378 2500 3989

2014-15 300 265 2500 2165

2015-16 300 300 2500 2571

2016-17 290 117 2500 358

Source: Economic Review (2016-17)

In addition, skill training is also provided under initiatives run by the Department of Agriculture,

Directorate of Training, Rajasthan Skill and Livelihoods Development Corporation (RSLDC), Rajasthan

Grameen Aajeevika Vikas Parishad (RGAVP), Department of Local Self Governance, Rajasthan

Renewable Energy Corporation Limited (RRECL), Department of Science and Technology, Department

of Tribal Area Development, Khadi and Village Industries Corporation (KVIC), and Rajasthan Knowledge

Corporation Limited.

Despite these efforts, the levels of skill available in the state continue to be low. Most of the vocational

training institutes are underutilized in terms of seating capacity, fund utilization and outdated in the

course curriculum structures. There is a marked preference among the youth for public sector

employment and the awareness regarding the upcoming private organizations and scope of work was

observed to be far less. The awareness of some specific training courses designed for shorter duration

with better placement results was also found to be lacking and if available, it was more in few top

districts (Jaipur, Alwar, Kota, Jhunjhunu, and Bharatpur) performing in skill development training. Very

few districts have had some major initiatives moving in skill development and private partners (NGOs,

private colleges etc.). A preliminary scan of secondary data indicates that Pratapgarh, Tonk, Sawai

Madhopur, Jalore and Rajsamand lag considerably in terms of skilling initiatives.

Going by the trends observed in the secondary data, some of the most common trades like gems and

jewellery, local hotels (hospitality) and construction set-ups would continue to engage household

workers or in other words the major portion of unorganized labour. Similarly, the rural set-up of

agriculture and allied industries would engage the unskilled unorganized labour with quick access to the

resource pool in the villages.

Skills shortages aren’t confined to just a few industries. There were some examples of how skills gaps

manifest themselves across companies in different sectors as well. As observed across the districts of

the state, some of the common sectors which had bearing over the state results were tourism and

hospitality, auto-engineering, manufacturing, mines and minerals, handloom and handicrafts, leather,

gems and jewellery, construction, and IT/ITES. Some of the common requirements which could be also

highlighted as gaps were lack of life skills, communication, less flexible and fit into a model, lack of

market understanding and linkages, and orientation to the services provided as a provider.

Outline of Skill Strategy

While the above provides an overview of the state of skill development in the state, it is inadequate to

work out a detailed and effective strategy. This requires a dedicated investigation which could not be

241

carried out, given the limited resources. However, what does emerge that the National Skill

Development Corporation also needs to focus deeper on skill development in the agriculture sector.

In order to enhance skills, the key stakeholders would be the employers (industries), the vocational

training providers and the beneficiaries. The key enablers would be RSLDC, NSDC, state industry and

trade associations, and the state departments anchoring various skilling initiatives. There is a clear lack

of contemporary training program in the state and hence the gaps in the required infrastructure to

anchor the skill initiatives. This could be addressed with certainty, pace and strategies built upon best

practices, specific skilling intervention plans, robust implementation structures for execution and

monitoring. This would culminate in enhanced employment of the youth, and more skilled workforce

engagement in the state.

The state’s skill development initiatives would be more effective if it takes a united approach to the skilling interventions. Appointing a nodal agency for skilling such as RSLDC would enable better planning of initiatives across departments and give a more holistic approach. The NSDC needs to develop a portfolio-level plan for creating and augmenting a skill development training in line with industry requirements especially in high-growth sectors, such as construction, retail, IT and ITES of each district in the state and encourage more partners to take part in current and upcoming training programmes. On the part of the state government, it needs to link different schemes aimed at livelihood generation through skill development or training initiatives so as to maximise the results. This would call for interventions at the district levels, more PPPs for skill enhancement, innovations for better industrial linkages and adopting best practices for skill development. The industry sector is the biggest beneficiary of enhanced skills and it therefore needs to encourage and partner industry associations in workforce engagement and skill enhancement. It also needs to develop new PPP models of operations matching core competencies as part of CSR initiatives. The training providers need to develop plans to engage the youth in the districts keeping in mind the workforce required by the industry sector, liaison with industry associations for mapping current and future requirements, improve the training curriculum and initiate funding support from apex bodies such as NSDC and RSLDC. These providers will play the most vital role in imparting skilling strategies across the districts and therefore need to be capable of taking up the challenge.

242

ANNEX 2. District-wise percentage distribution of Male population engaged in different types of occupation

AJMER

Land size class Marginal Small Medium Large

Sl.No. Principal Activity Status Name Principal Activity

Subsidiary Economic Activity

Principal Activity


Principal Activity


Principal Activity


1 Worked in Household Enterprise (Self-Employed): Own Account Worker 0% 2% 1% 0% 0% 0% 0% 0%

2 Agriculture in Own Land 22% 52% 24% 22% 33% 59% 56% 18%

3 Worked as Regular Salaried/ Wage Employee 38% 21% 33% 7% 24% 6% 17% 18%

4

Worked as Casual Wage Labour: In Public Works Other Than MGNREGA Works 13% 0% 10% 1% 5% 6% 0% 0%

5 In MGNREGA Works 0% 0% 0% 0% 0% 0% 0% 9%

6 Agriculture in Other’S Land 1% 3% 3% 3% 0% 0% 0% 0%

7 In Own Retail Shop 5% 0% 2% 1% 0% 0% 6% 0%

8 In Other Types of Work 2% 1% 1% 1% 0% 6% 0% 0%

9 Attending Educational Institution 11% 3% 10% 1% 14% 0% 17% 0%

10

Attended Domestic Duties Only and engaged in free collection of goods from the forest, tailoring, weaving, etc. 7% 15% 10% 65% 14% 18% 6% 36%

243

11 Rentiers, Pensioners, Remittance Recipients, Etc. 2% 2% 4% 1% 10% 6% 0% 18%

Total 100% 100% 100% 100% 100% 100% 100% 100%

UDAIPUR Land size class




Principal Activity


Principal Activity


Principal Activity


1 Worked in Household Enterprise (Self-Employed): Own Account Worker 0% 1% 0% 0% 0 0 0 0

2 Agriculture in Own Land 32% 43% 86% 14% 0 0 0 0

3 Worked as Regular Salaried/ Wage Employee 40% 8% 0% 43% 0 0 0 0

4

Worked as Casual Wage Labour: In Public Works Other Than MGNREGA Works 14% 4% 14% 14% 0 0 0 0

5 In MGNREGA Works 1% 1% 0% 0% 0 0 0 0

6 Agriculture in Other’s Land 1% 1% 0% 0% 0 0 0 0

7 In Own Retail Shop 1% 0% 0% 0% 0 0 0 0

8 In Other Types of Work 1% 10% 0% 0% 0 0 0 0

9 Attending Educational Institution 3% 1% 0% 0% 0 0 0 0

10

Attended Domestic Duties Only and engaged in free collection of goods from the forest, tailoring, weaving, etc. 3% 26% 0% 14% 0 0 0 0

11 Rentiers, Pensioners, Remittance Recipients, Etc. 5% 3% 0% 14% 0 0 0 0

Total 100% 100% 100% 100% 0 0 0 0

244

JODHPUR Land size class




Principal Activity


Principal Activity


Principal Activity





4


5 In MGNREGA Works 0% 0% 0% 1% 0% 5% 0% 6%

6 Agriculture in Other’s Land 1% 0% 0% 0% 1% 0% 0% 0%




10



Total 100% 100% 100% 100% 100% 100% 100% 100%

245

ALWAR Land size class




Principal Activity


Principal Activity


Principal Activity





4


5 In MGNREGA Works 0% 1% 0% 0% 0% 0% 0% 0%





10



Total 100% 100% 100% 100% 100% 100% 100% 100%

246

ANNEX 3. District-wise percentage distribution of Female population engaged in different types of occupation

AJMER Land size class




Principal Activity


Principal Activity


Principal Activity


1

Worked in Household Enterprise (Self-Employed): Own Account Worker 2% 1% 4% 1% 9% 0% 0% 20%



4


5 In MGNREGA Works 4% 4% 1% 5% 9% 5% 5% 0%





10



Total 100% 100% 100% 100% 100% 100% 100% 100%

247

UDAIPUR Land size class




Principal Activity


Principal Activity


Principal Activity


1




4


5 In MGNREGA Works 11% 10% 33% 0% 0% 0% 0% 0%





10



Total 100% 100% 100% 100% 0% 0% 0% 0%

JODHPUR Land size class


248



Principal Activity


Principal Activity


Principal Activity


1




4


5 In MGNREGA Works 5% 4% 5% 5% 3% 2% 0% 0%





10



Total 100% 100% 100% 100% 100% 100% 100% 100%

ALWAR Land size class




Principal Activity


Principal Activity


Principal Activity


249

1




4


5 In MGNREGA Works 3% 2% 3% 0% 12% 0% 0% 0%





10



Total 100% 100% 100% 100% 100% 100% 100% 100%

250

ANNEX 4. Percentage distribution of households using different source of drinking water by social group and religion


Piped water

Tube well / borehole

Hand pump

Protected well

Unprotected well

Protected spring

Unprotected spring

River/canal/ stream/lake/ pond

Tanker ALL

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (1)

AJMER

General 0.9 1.8 0.5 0.0 0.0 0.0 0.0 0.0 2.8 6.0

SC 3.7 0.5 1.8 0.5 0.0 0.0 0.0 0.0 11.9 18.3

ST 0.0 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.9 1.4

OBC 11.0 2.8 18.8 4.6 5.0 0.0 0.5 0.0 31.7 74.3

ALL 15.6 5.5 21.1 5.0 5.0 0.0 0.5 0.0 47.2 100.0

HINDU 15.1 4.6 12.4 3.2 5.0 0.0 0.5 0.0 46.3 87.2

MUSLIM 0.5 0.9 8.7 1.8 0.0 0.0 0.0 0.0 0.9 12.8

CHRISTIAN 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

OTHERS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

ALL 15.6 5.5 21.1 5.0 5.0 0.0 0.5 0.0 47.2 100.0

UDAIPUR

General 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 0.5

SC 0.0 0.0 1.0 1.0 1.9 0.0 0.0 0.0 0.0 3.8

ST 1.0 5.8 24.0 18.8 42.8 0.0 2.4 0.0 0.5 95.2

OBC 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 0.0 0.5

ALL 1.0 5.8 25.0 19.7 45.7 0.0 2.4 0.0 0.5 100.0

HINDU 1.0 5.8 25.0 19.7 45.7 0.0 2.4 0.0 0.5 100.0

MUSLIM 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

CHRISTIAN 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

OTHERS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

ALL 1.0 5.8 25.0 19.7 45.7 0.0 2.4 0.0 0.5 100.0

JODHPUR

General 1.8 0.9 0.4 0.4 0.0 0.0 0.0 0.0 10.5 14.0

SC 0.9 0.0 0.0 1.8 0.0 0.0 0.0 0.0 5.3 7.9

ST 0.4 2.2 1.3 0.0 0.0 0.0 0.0 0.0 7.5 11.4

OBC 3.5 2.6 3.9 1.8 2.2 0.4 0.0 6.6 45.6 66.7

ALL 6.6 5.7 5.7 3.9 2.2 0.4 0.0 6.6 68.9 100.0

HINDU 6.6 5.7 4.4 3.9 1.8 0.4 0.0 6.6 64.5 93.9

MUSLIM 0.0 0.0 1.3 0.0 0.4 0.0 0.0 0.0 4.4 6.1

CHRISTIAN 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

OTHERS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

ALL 6.6 5.7 5.7 3.9 2.2 0.4 0.0 6.6 68.9 100.0

ALWAR

General 0.5 5.3 0.5 0.5 0.0 0.0 0.0 0.0 0.0 6.7

SC 6.3 26.9 1.9 0.5 0.5 0.0 0.0 0.0 0.0 36.1

ST 0.0 3.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.8

251


Piped water

Tube well / borehole

Hand pump

Protected well

Unprotected well

Protected spring

Unprotected spring

River/canal/ stream/lake/ pond

Tanker ALL

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (1)

OBC 3.8 42.3 3.4 0.0 3.8 0.0 0.0 0.0 0.0 53.4

ALL 10.6 78.4 5.8 1.0 4.3 0.0 0.0 0.0 0.0 100.0

HINDU 7.2 55.8 3.8 1.0 1.4 0.0 0.0 0.0 0.0 69.2

MUSLIM 3.4 21.6 1.9 0.0 2.9 0.0 0.0 0.0 0.0 29.8

CHRISTIAN 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

OTHERS 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0

ALL 10.6 78.4 5.8 1.0 4.3 0.0 0.0 0.0 0.0 100.0

252

ANNEX 5. Proportion of income from different sources

District Cultivation Farming of animals Non-farm sources Wages Salary Pension Remittance

Ajmer 3.60 9.71 17.48 10.07 25.90 7.51 25.73

Udaipur 10.82 2.20 13.52 11.20 35.77 3.79 22.67

Jodhpur 1.46 2.45 22.66 16.45 19.75 10.98 26.22

Alwar 9.43 6.46 23.30 11.06 30.49 2.37 16.86

DOUBLING FARMERS’ INCOME: ISSUES AND STRATEGIES FOR ...€¦ · Table 73: Average monthly gross...

Documents

Transcript of DOUBLING FARMERS’ INCOME: ISSUES AND STRATEGIES FOR ...€¦ · Table 73: Average monthly gross...