·
Agriculture plays
a vital role in India’s economy. Over 58 per cent of the rural households
depend on agriculture as their principal means of livelihood. Agriculture,
along with fisheries and forestry, is one of the largest contributors to the
Gross Domestic Product (GDP).
·
As per estimates
by the Central Statistics Office (CSO), the share of agriculture and allied
sectors (including agriculture, livestock, forestry and fishery) was 15.35 per
cent of the Gross Value Added (GVA) during 2015-16 at 2011-12 prices.
·
India is the
largest producer, consumer and exporter of spices and spice products. India's
fruit production has grown faster than vegetables, making it the second largest
fruit producer in the world. India's horticulture output, comprising fruits,
vegetables and spices, is estimated to be 283.4 million tonnes (MT) in 2015-16
after the third advanced estimate. It ranks third in farm and agriculture outputs.
Agricultural export constitutes 10 per cent of the country’s exports and is the
fourth-largest exported principal commodity. The agro industry in India is
divided into several sub segments such as canned, dairy, processed, frozen food
to fisheries, meat, poultry, and food grains.
·
The Department of
Agriculture and Cooperation under the Ministry of Agriculture is responsible
for the development of the agriculture sector in India. It manages several
other bodies, such as the National Dairy Development Board (NDDB), to develop
other allied agricultural sectors.
·
Over the recent
past, multiple factors have worked together to facilitate growth in the
agriculture sector in India. These include growth in household income and
consumption, expansion in the food processing sector and increase in
agricultural exports. Rising private participation in Indian agriculture,
growing organic farming and use of information technology are some of the key
trends in the agriculture industry.
·
As per the 3rd
Advance Estimates, India's food grain production has increased marginally to
252.23 million tonnes (MT) in the 2015-16 crop year. Production of pulses is
estimated at 17.06 million tonnes.
·
With an annual
output of 146.31 MT, India is the largest producer of milk, accounting for 18.5
per cent of the total world production. It also has the largest bovine
population. India, the second-largest producer of sugar, accounts for 14 per
cent of the global output. It is the sixth-largest exporter of sugar,
accounting for 2.76 per cent of the global exports. India is a leading country
in coconut production and productivity in the world, with annual production of
2,044 crore coconuts and the productivity of 10,345 coconuts per hectare as on
2015-16. Spice exports from India are expected to reach US$ 3 billion by
2016–17 due to creative marketing strategies, innovative packaging, strength in
quality and strong distribution networks. The spices market in India is valued
at Rs 40,000 crore (US$ 5.87 billion) annually, of which the branded segment
accounts for 15 per cent. In fact, the Spices Board of India has decided
to set up a spice museum at Willington Island in Kochi to
attract and educate tourists and seafarers about the history and growth of Indian
spices industry.
·
Indian
agrochemical industry is expected to grow at 7.5 per cent annually to reach US$
6.3 billion by 2020 with domestic demand growing at 6.5 per cent per annum and
export demand at 9 per cent per annum*.
Agriculture
Inputs: -
For any sector
these needs an input mechanism. These are mainly divided into 4 types
·
Land
·
Irrigation
·
Seeds
·
Fertilizers
·
Land is a scarce
resource, whose supply is fixed for all practical purposes. At the same time,
the demand for land for various competing purposes is continuously increasing
with the increase in human population and economic growth.
·
Land use pattern
qt any given time is determined by several factors including size of human and
livestock population, the demand pattern, the technology in use, the cultural
traditions, the location and capability of land, institutional factors like
ownership pattern and rights and state regulation. The land use pattern besides
having economic implications has also important ecological dimensions, which if
ignored can have disastrous consequences.
·
The
available land is classified into two parts on the basis of its use, viz.
·
Agricultural land
(also agricultural area) denotes the land suitable for agricultural production,
both crops and livestock. It includes net sown area, current fallows and land
under miscellaneous trees crops and groves. Agricultural land in India totals a
little over 50 percent of the total geographical area in the country. This is
the highest among the large and medium-sized countries of the world.
·
The influence of
favourable physical factors (like size, extent of plains and plateaus, etc.)
and
·
The extension of
cultivation to a large proportion of the cultivable land.
·
But, because of
the large population of the country, the per capita arable land (i.e. land
suitable for agriculture) is low: 0.16 hectares against the world average of
0.24 hectares. About 15 per cent of the sown area is multi-cropped.
·
While, most of
the multi-cropped area is irrigated, only one-fourth of the gross cropped area
is irrigated. The security provided by the irrigation facilities is a major
factor in intensive application of labour and other inputs to obtain high
yields.
·
This includes:
·
land under forests
and permanent pastures,
·
land under other
non-agricultural uses (towns, villages, roads, railways, etc.) and
·
land
classified as cultivable waste as well as barren and uncultivated land of
mountain and desert areas.
·
An operational
land holding is a techno-economic land unit used wholly or partly for
agricultural production and operated (directed/managed) by one person alone or
with the assistance of others, without regard to title, size or location. A
operation land holding may be consisted of either one or more than one parcels
of land, provided they form the part of same unit. Operational Land
Holdings include only those units which are used either in farm production or
farm production and livestock and poultry products (primary) and/or
pisciculture or for only livestock and poultry products (primary) and/or
pisciculture.
·
There are five
kinds of Land Holdings in India, depending on various sizes as follows:
Marginal holdings: Size 1 hectare or less
·
Small holdings: Size
1 to 2 hectares
·
Semi-medium
holdings: Size 2 to 4 hectares
·
Medium holdings:
Size 4 to 10 hectares
·
Large holdings:
Size above 10 hectare
·
Maximum number of
operational land holdings in India is marginal holdings. According to Census
2011, 67 per cent of holdings were classified as marginal (less than one
hectare) and 18 per cent were classified as small (one-two hectare). Large
holdings were estimated to be only 0.7%.
·
According to
Agricultural Census 2010-11, India’s total area under irrigation is 64.7
million hectares. Of this maximum 45% is shared by tube wells followed by
Canals and wells.
·
We
note here that since 1950-51, the government had given considerable importance
to the development of command area under canals. In 1950-51, the Canal
irrigated area was 8.3 million hectares and it currently stands at 17 million
hectares. Despite that, the relative importance of Canals has come down from
40% in 1951 to 26% in 2010-11. On the other hand, the well and tube well
accounted for 29% total irrigated area and now they share 64% of the total
irrigated area.
Need for Irrigation:
·
(i)India is a big
country and stands next to China when we talk about population and so
irrigation facilities are needed to grow more food to feed our teaming millions.
·
(ii) The
distribution in rainfall is uneven and uncertain which either causes famines or
drought. By means of irrigation we can check both the problems.
·
Different water
requirements of different crops can only be met through irrigation facilities.
·
iv)India, being a
tropical country the temperature is high and evaporation more rapid, so,
artificial irrigation is necessary for ample supply of water and also to
prevent water scarcity in the long dry winter season.
·
Depending upon the
availability of surface or ground water, topography, soil and rivers, various
types of irrigation practised in India are as follows:
·
It is prevalent
in the uneven and relatively rocky plateau of Peninsular India. Tanks are
commonly used in Deccan Plateau, Andhra Pradesh, Karnataka, Tamil Nadu and
Maharashtra. About 8% of total irrigated area is irrigated by tanks.
·
Most of the tanks
are small in size and built by individuals or group of farmers by raising
bunds across seasonal streams. But there are some drawbacks: Tanks cover a
large areas of cultivable land. Evaporation of water is rapid due to large
expanse of shallow water of tanks, do not ensure perennial supply of water.
·
It is more
widespread in plains, coasts and some regions of peninsular India. It is less
costly and more flexible as water can be drawn whenever needed and ‘evaporation
loss’ is minimised and no fear of “over irrigation”. Uttar Pradesh leads in
well irrigation and is followed by Punjab, Haryana, Bihar, Gujarat and Andhra
Pradesh.
·
Open wells and
tube-wells. Open wells are shallow and irrigate a small area because water
available is limited. Tube wells are deep and have the capacity to draw a large
volume of water. It has increased in recent years.
·
Canals are the
main source of irrigation in India. Canals are big water channels taken out
from rivers to carry water to places far away from the river. It is of two
types: Canals taken out from rivers without any regulating system like weirs
etc. at their head are called inundation canals and canals taking off from
perennial rivers with a weir system to regulate flow of water are called
perennial canals.
·
The states under
this irrigation system are: Andhra Pradesh, Assam, Haryana, Jammu &
Kashmir, West Bengal, Punjab Rajasthan, Bihar, Karnataka, Tamilnadu and UP.
Punjab and Haryana have become the first granaries of country due to these
canals which include Western Yamuna Canal, Sirhind Canal, Upper Bari Doab canal
& Bliakra Canal. The important canals of Uttar Pradesh are upper and lower
Ganga Canal, Agra and Sharda Canal and Rajasthan has become third granary due
to Rajasthan canal project.
Seed:-
Seed is the basic
and most critical input for sustainable agriculture. The response of all
other inputs depends on quality of seeds to a large extent. It is
estimated that the direct contribution of quality seed alone to the total
production is about 15 – 20% depending upon the crop and it can be further
raised up to 45% with efficient management of other inputs. A major re-structuring
of the seed industry by Government of India through the National Seed Project
Phase-I (1977-78), Phase-II (1978-79) and Phase-III (1990-1991), was carried
out, which strengthened the seed infrastructure that was most needed and
relevant around those times. Post 1991 new seed policy has been initiated in
2002 where many measures has been taken improve the seed quality. Again in 2004
Seed bill has been passed, features of the bill is
·
Registration of kinds and varieties of Seeds
etc.
– Evaluation of performance
– Compensation to Framers
– Registration of Seed Producers and Processing Units
– Seed dealers to be Registered
• Regulation of Sale of Seed and Seed Certification
• Seed Analysis and Seed Testing
• Export and Import of Seeds and Planting Material
• Offences and Punishment.
·
Apart from this many policy initiatives has
been taken by the government like Rashtriya Krishi Vikas Yojna, Macro Management
Agriculture, Integrated Scheme for oilseeds, pulses, oil palm and maize
(ISOPOM); Technology missions for cotton, National food security Mission etc.
provide for subsidized seeds. Some of them also provide incentives for
investment in Seed manufacturing infrastructure and up gradations.
·
New Policy on
Seed Development (NPSD) includes permitting 100 per cent foreign direct
investment (FDI) under the automatic route. The thrust is also on creating
a seed bank.
·
There are three
stages in seed production cycle. At first stage Breeder
seeds are
developed by ‘Indian Council of Agricultural Research’ (ICAR), National Seeds
Corporation or state farms corporations. In second stage Foundation
Seeds are
developed by NSC, SFCs or State seeds corporations and then finally Certified
Seeds are
produced and distributed to all farmers.
·
Certification
is done by state agricultural universities or private organizations authorized
by ‘Indian Council of Agricultural Research’
Hybrid Seeds:-
Hybrid seeds are obtained by cross
pollination of different varieties of related plants. These seeds were
instrumental in green revolution. These seeds combine desirable properties of
two related plants. Using a method of controlled crossing devised by
Charles Darwin and Gregor Mendel in the mid-19th century, plant breeders can
now produce seed that combines the desired traits of two pure parent lines in
the first generation itself.
Genetically
Modified Varieties:-
These varieties of seeds are developed
in laboratories by genetic engineering technologies. In these technologies
genes of different species of organisms (like bacteria genes with plants) are
integrated to modify DNA to get desired characteristic. Bacteria named bacillus
Thuringiensis gives a gene that is incorporated into plant’s DNA and we get
Genetically Modified Organisms like BT- corn, BT- cotton, Bt- Brinjal etc. This
plant will be protected from pests and will give increased yields. In USA GM
crops are allowed and contribute about 85% of the consumption, whereas in
Europe it is largely banned as of now. In India, it is allowed for commercial
production of cotton and for food crops field trials are going on
National
Seeds Corporation:-
·
It is Mini ratna
Company under Ministry of agriculture formed in 1963 to produce foundation
seeds and undertake certification activities. It has central
role in development of seed industry in India. Various schemes such as ISOPOM,
NFSM and National Horticulture Mission are implemented (partly or fully) under
NSC. It is also involved in export of seeds, especially to SAARC nations and
African countries.
·
It maintains a
SAARC seed bank in which large quantities of various seeds are kept as
inventory so that shortage due to any natural calamity or otherwise could be
tackled.
Fertilizers:-
Fertilizers are
any organic/inorganic, natural/synthetic material used in soil to supplement it
with plant nutrients which are essential for plant’s growth.
·
Fertilizers were
another most important part of green revolution. Some points to be noted are –
·
In India per
hectare Consumption around (around 146 Kg) is far lower than developed
countries.
·
Indian Soils are
deficient in Nitrogen and Phosphorus
·
Fertilizer can
most effectively be used with ample water. So rain fed areas (deprived of
irrigation) constitute 70 % of agricultural land and still they use only 20% of
national Fertilizers consumption. On other hand Rabi crops are dominantly
produced in Irrigated areas, so they consume about 66% of fertilizers while their
share of total agri output is 33%
·
Due to rising
prices of fertilizers government is promoting organic farming and organic
manure.
·
India meets its
80 % requirement of Urea (N), while it is heavily dependent on Imports for its
potassium (K) and phosphorus (P) fertilizer requirements.
·
Fertilizers are
made through industrial processes in which composition of nutrients is precise
and deliberately fixed. In contrast Manure is derived animal waste such as
cattle dung and urine. It enriches the soil generally. Further, presence of
manure makes fertilizers even more effective.
Nitrogen – is responsible for green leafy growth and
overall plant health. Its Necessary for Photosynthesis to take place.
Deficiency will result in yellow leaves and weak plant.
Phosphorous – Is necessary for root, flower and fruit
development.
Potassium – Plant health and vigour. It helps plant to
fight diseases and pests. It also gives strong cell walls
Subsidy: Subsidies are the financial benefits that are
given to the farmers for their betterment. In India in last few years the rate
of subsidy has evenly grown up to 55-60% on an average.
1.
Input subsidy: Subsidies
can be granted through distribution of inputs at prices that are less than the
standard market price for these inputs. The magnitude of subsidies will
therefore be equal to the difference between the two prices for per unit of
input distributed. Naturally several varieties of subsidies can be named in
this category like Fertiliser subsidy, Irrigation subsidy, Power subsidy, Seed
subsidy and Credit subsidy
·
Price subsidy: It is the difference between the price of
food-grains at which FCI procures food-grains from farmers, and the price at
which PCI sells either to traders or to the PDS. The market price may be so low
that the farmers will have to bear losses instead of making profits. In such a
case the government may promise to buy the crop from the farmers at a price
which is higher than the market price.
·
The difference
between the two prices is the per unit subsidy granted to the farmers by the
government. The price at which the government buys crops from the farmers is
called the procurement price. Such procurement by the government also has a
long run impact. It encourages the farmers to grow crops which are regularly
procured.
·
This type of
subsidy is not different from others. But its purpose is special. When a farmer
or exporter sells agricultural products in foreign market, he earns money for
himself, as well as foreign exchange for the country. Therefore, agricultural
exports are generally encouraged as long as these do not harm the domestic
economy. Subsides provided to encourage exports are referred as export
subsidies.
·
Subsidies
on food, fertiliser and petroleum have been pegged lower by over 4 per cent to
nearly Rs 2.31 lakh crore for 2016-17.
·
The
subsidy bill was Rs 2, 41,856.58 crore for 2015-16 (revised estimates).
·
The
government has earmarked Rs 1,34,834.61 crore for food subsidy in the next
fiscal as against Rs 1,39,419 crore in the revised estimate of this fiscal
·
Fertiliser
subsidy has been pegged at Rs 70,000 crore for 2016-17, lower than Rs 72,437.58
crore estimated for this financial year
·
In
fertiliser subsidy, the government has allocated Rs 51,000 crore for urea and
Rs 19,000 crore for decontrolled phosphoric and potassium (P&K)
fertilisers.
·
Petroleum
subsidy has been reduced to Rs 26,947 crore for 2016-17 from estimated Rs
30,000 crore in the current fiscal.
·
Of
Rs 26,947 crore for next fiscal, Rs 19,802.79 crore has been earmarked for LPG
subsidy and the rest is for kerosene.
·
As
per the document, out of total Rs 51,000 crore allocated for urea subsidy, Rs
40,000 crore has been earmarked for domestic urea, while the rest is for
imported urea.
·
Similarly,
for decontrolled phosphoric and potassium fertiliser (like DAP and MoP), Rs
12,000 crore is allocated for indigenously produced and Rs 6,999.99 crore for
imported P&K fertilisers, and Rs 1 lakh for assistance on production of
city compost.
Credit and Insurance:-
·
To
procure all other inputs such as seeds, fertilizers, agricultural labour for
tilling/weeding/sowing, every farmer needs money. This money requirement is
more at the beginning of sowing season, but post-harvest loans are also
crucial. Further, as we have seen, agriculture in India is fraught with
exigencies of nature and macroeconomics, insurance is must for the farmer.
·
Traditionally,
Indian farmer has been dependent upon informal sources of finance, such as from
money lenders or subscribing to small chit funds. After the independence, by
persistent efforts of government share of institutional credit has increased
substantially. Informal or non-institutional credit was largely unregulated and
Interest rates were a tool to extract maximum out of farmer. In contrast, under
institutional credit there are various Interest Subvention schemes, under which
farmer gets subsidized credit. There has been also large scale, but
controversial Farm Loan waivers. Further, agricultural credit is largest
component of Priority Sector lending targets.
·
Institutions
like NABARAD, Regional Rural Banks, and Rural Cooperative Banks will be giving credit
to farmers.
·
There
are 3 types loans provided to Indian farmers to meet their requirements
·
Short
term loans
·
Medium
term Loans
·
Short
term loans
·
Short
term loans are provided for a period of less than 15 months to meet out
expenses of routine farming and domestic expenses. Eg. Purchasing seeds,
fertilizers.
·
Medium
term loans are provided for a period of 15 months to 5years to purchase
agricultural equipments, animal and land improvements
·
Long
term loans are provided for more than 5 years to buy land, heavy equipment and
repayment of old loans.
·
Indian
farmers acquire from 2 sources
·
Non-institutional
sources
like Big money lenders , land lords, big business men etc.
·
Institutional sources
like
commercial banks, co-operative banks and Government sources.
Kisan
Credit Card Scheme (KCC):-
·
Currently
short term loan is disbursed to farmers through KCC. This method is used by all
banks viz. Commercial or cooperative or regional rural banks. All types of
farmers – Marginal farmers, Sharecroppers, Tenant farmers are eligible. Limit
of credit disbursal depends upon land availability for cultivation and credit
history of farmer. Through this card farmers also get Accidental
death/permanent disability Insurance. Some banks have enlarged scope of KCC s
by including Long term loans under it. Gov. advised banks to turn these cards
in Smart cum Debit Card.
·
Interest subvention as per scheme of the
government is available on the loans disbursed through card. There are other
benefits in place such as no processing fees up to loan of 3 lakhs, Farmers can
overdraw and maintain debit/negative balance up to certain extent.
·
National
Agriculture Insurance Scheme – Launched for providing financial support to the
farmers in the event of failure of crops as a result of natural calamities,
pests and diseases.
·
Modified
National Agriculture Insurance Scheme – It provides for subsidized premiums and
25% upfront/immediate payment of claim. It is compulsory for farmer who has
taken loan. Private sector is allowed to operate under the scheme and NIAS
stands withdrawn where MNIAS is implemented.
·
Pilot
Weather Based Crop Insurance Scheme – It insures farmers from anticipated
exigencies of weather such as frost, rainfall, flood and humidity, which may
result in damage to crop.
·
It
is largely believed that various schemes have badly failed in delivering what
they intended. There is lethargic implementation; Companies take more than a
year to settle the claims. When there is crop failure or damage, farmers need
immediate relief, at least before starting of next sowing season. In absence of
this relief they have to forego crop for a season or depend upon expensive finance
through informal sources.
·
Further,
pricing of premium is arbitrary and profitability of farmers is not considered
in this. In some crops premium is more than expected return on the crop. This
keeps away small and marginal farmers from insurance. Yet they are the ones who
need insurance the most.
·
As
of now there is no scheme for Income insurance. If due to draught or natural
calamity, farmers are not able to sow crops and will lose their income of that
season, then they have no support of insurance. ‘Farm Income Insurance Scheme’
was launched in 2003, but it was soon discontinued after change of government.
·
Is done through APMC where farmers get fair
and remunerative price.
·
An
Agricultural Produce Market Committee is a marketing board established by state governments of India, one main function of which
is basically to provide a platform for farmers to sell their produce.
·
To protect and
empower the farmers, the state governments since 1950s started enacting APMC
which runs on two principles: Ensure Farmers are not Exploited
2.Ensure Farmer gets good Money
·
How
is it formed?
A State is geographically divided and Market (Mandis) are established at
different places within the states where farmers have to sell their products
through auctions.
State APMC Market Committees have 10-17 members elected or nominated by
Government in accordance with provisions of the respective State APMC Act.
·
These Market
Committees are engaged in development of market yards for the benefit of
agriculturists and the buyers. They may also provide storage structures,
godowns, etc
·
To operate in an
APMC Market (Mandi), you need to get a license, the pre-conditions for which is
you must own a shop or warehouse in the Mandi. But Shops / warehouses are
limited n number and very expensive. Commission
agent/middleman/trader has to make heavy investment to start a business in
APMCs. Even weigh men, Paddlers, Hamals have to get license.
And we all know of the bribe culture in India that goes along with all License
requirements.
The Mandi
people sometimes overcharge the farmers to recover their (bribe) investment.
·
Regular elections of APMCs are not held and APMC board are administrated by bureaucrats.
·
In every Mandi, every transaction is subjected to market
tax + market cess. To avoid tax/cess, the traders don’t
give sale slips to farmers. Later it becomes difficult for farmer to prove his
‘income’ to get loans from banks.
·
In
order to address these problems Government declares minimum support prices
(MSP) for many cereal, pulses and oilseeds crops so, middleman at APMC cannot
exploit the farmers beyond a level.
·
In order to over
the problems completely eNAM has been introduced. National Agriculture Market
(NAM) is a pan-India electronic trading portal which networks the existing APMC
mandis to create a unified national market for agricultural commodities. The
NAM Portal provides a single window service for all APMC related information and
services. This includes commodity arrivals & prices, buy & sell trade
offers, provision to respond to trade offers, among other services. An online market reduces transaction costs and
information asymmetry.
·
Administration
of e-NAM: State Government as per
agri-Market Regulations.
State is divided into several Markets areas regulated by APMC
which imposes its own regulations like Fees, Mandi Charges, and Prices for the
consumer benefit.
Online trading platform at the state and central
level to
Promotes uniformity
·
Streamlining
of procedures across the integrated markets
·
Removes
information asymmetry between buyers and sellers and promotes real time price
discovery, based on actual demand and supply
·
Access
to nationwide markets for farmers.
·
Online
payment and availability of better quality produce and at more reasonable
prices to the consumer.
·
A
national e-market platform for transparent sale transactions and price
discovery initially in regulated markets.
·
Promotion
of e-trading by their State Agricultural Marketing Board/APMC.
·
Liberal
licensing of traders / buyers and commission agents by State authorities. One
license for a trader valid across all markets in the State
·
Harmonisation
of quality standards of agricultural produce and provision for assaying
(quality testing) infrastructure in every market to enable informed bidding by
buyers.
·
Single point levy
of market fees, i.e on the first wholesale purchase from the farmer.
·
Provision
of Soil Testing Laboratories in/ or near the selected mandi to facilitate
visiting farmers to access this facility in the mandi itself. M/s. Nagarjuna
Fertilizers and Chemicals Ltd. is the Strategic Partner (SP) who is responsible
for development, operation and maintenance of the platform.
·
NAM promises more
options for selling produce and making competitive returns.
·
Traders
·
NAM will provide
access to larger national market for secondary trading.
·
Buyers, Processers
& Exporters
·
NAM will enable
direct participation in the local mandi trade, reducing intermediation cost.
·
State’s Requirements for Successful Implementation
·
In order to
facilitate both - unification of market and online trading, it is necessary for
the States to undertake reforms prior to seeking assistance under the scheme in
respect of
·
a single license to
be valid across the State,
·
single point levy
of market fee and
·
provision for
electronic auction as a mode for price discovery.
·
Implementations
Agency:
Small Farmers’ Agribusiness Consortium (SFAC) is operating the NAM as the
implementing agency with technical support from the Strategic Partner (SP).
·
Given the
importance of the agriculture sector, the Government of India, in its Budget
2016–17, planned several steps for the sustainable development of agriculture.
·
Budget 2016-17
proposed a slew of measures to improve agriculture and increase farmers’
welfare such as 2.85 million hectares to be brought under irrigation, Rs
287,000 crore (US$ 42.11 billion) grant in aid to be given to gram panchayats
and municipalities and 100 per cent village electrification targeted by May 01,
2018. The government has set an ambitious target of producing a record 270.1 MT
of foodgrains in 2016-17, 7 per cent higher than the 252.23 MT of production
estimated for 2015-16.
·
The Government of
India has started work on 99 major and medium irrigation projects, slated to be
completed by 2019. These projects will bring 7.6 million hectares of land under
irrigation in some of the most drought-prone regions of India.
·
The government has
already taken steps to address two major factors (soil and water) critical to
improve agriculture production. Steps have been taken to improve soil fertility
on a sustainable basis through the soil health card scheme and to support the
organic farming scheme ‘Paramparagat
Krishi Vikas Yojana’. Other steps include improved access to irrigation through
‘Pradhanmantri Gram Sinchai Yojana’; enhanced water efficiency through `Per
Drop More Crop’; continued support to Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) and the creation of a unified national
agriculture market to boost the incomes of farmers.
·
The Government of
India recognises the importance of micro irrigation, watershed development and
‘Pradhan Mantri Krishi Sinchai Yojana’; thus, it allocated a sum of Rs 5,300
crore (US$ 777.6 million) for it. It urged the states to focus on this key
sector. The state governments are compelled to allocate adequate funds to
develop the agriculture sector, take measures to achieve the targeted
agricultural growth rate and address the problems of farmers.
·
Given the
correlation between improvement in agriculture and the development of the country,
the Government of India adopted several initiatives and programmes to ensure
continuous growth. It allocated Rs 25,000 crore (US$ 3.67 billion) for the
Rural Infrastructure Development Fund (RIFD), Rs 1,500 crore (US$ 220 million)
for the long-term rural credit fund, Rs 45,000 crore (US$ 6.60 billion) for the
short-term cooperative rural credit finance fund and Rs 25,000 crore (US$ 3.67
billion) for the short-term Regional rural bank (RRB) refinance fund. It also
marked an ambitious target of Rs 8.5 lakh crore (US$ 124.71 billion) of
agriculture credit during 2015–16.
·
To boost
productivity and bring about increased prosperity, it has become necessary to
nurture the soil. The Soil Health Card scheme has been launched with this ideal
on February 19, 2015 by Prime Minister Narendra Modi from Suratgarh, Rajasthan.
·
Under this scheme,
14 crore Soil Health Cards are envisaged to be issued over the next 3 years.
·
Soil Health card is
a report card that provides vital information about the quality of soil by
giving comprehensive information about type of soil, nutrient content, fertilizer
required, crop suitability to ambient temperature and rainfall condition.
·
The ‘Soil Health
Card’ would carry crop-wise recommendations of nutrients / fertilizers required
for farms in a particular village, so that the farmers can improve productivity
by using inputs judiciously. The soil health card is issued every 3 years, to
all the farmers of the country so as to provide a basis to address nutrient
deficiencies in fertiliser practices.
·
Some of the recent
major government initiatives in the sector are as follows:
·
The government has
drawn up a five-year roadmap to increase pulse production from nearly 17.06 MT
in 2015-16 to 24 MT in 2020-21 through a dedicated action plan.
·
Prime Minister has
unveiled the operational guidelines for the Pradhan Mantri Fasal Bima Yojana which aims to provide farmers with crop
insurance as well as
·
The Cabinet
Committee on Economic Affairs (CCEA) has approved ‘Blue Revolution’, an
umbrella scheme for integrated development and management of fisheries by
Government of India, with total financial outlay of Rs 3,000 crore (US$ 440.15
million) for a period of five years.
·
The new crop
insurance scheme for farmers 'Bhartiya
Krishi Bima Yojana' aims to cover 50 per cent of the farmers under the
scheme in the next two-three years,
·
Gujarat Government
has planned to connect 26 Agricultural Produce Market Committees (APMCs) via
electronic market platform, under the National Agriculture Market (NAM)
initiative.
·
The State
Government of Telangana plans to spend Rs 81,000 crore (US$ 11.88 billion) over
the next three years to complete ongoing irrigation projects and also undertake
two new projects for lifting water from the Godavari and Krishna river.
·
The National Dairy
Development Board (NDDB) announced 42 dairy projects with a financial outlay of
Rs 221 crore (US$ 32.42 million) to boost milk output and increase per animal
production of milk.
·
Government of India
has set up an inter-ministerial committee, which will look into ways to examine
the potential of Indian agriculture, identify segments with potential for
growth, and work towards doubling farm incomes by 2022.
·
The Government of
India has allocated Rs 200 crore (US$ 29.9 million) for electronically linking
585 major wholesale agriculture markets across the country, thereby creating a
National Agriculture Market (NAM) in July 2015 for three years