EXT 411
RAISING FARMERS INCOME
SUBMITED TO SUBMITTED BY
PROF. O.P. MISHRA
Dr. B. JIRLI
PRAGATI PRAKASH
ID. 14096

Backdrop
 Past strategy: for development of the agriculture sector in India
 focused primarily on raising agricultural output
 improving food and nutrition security.
 did not explicitly recognise the need to raise farmers' income and
 did not mention any direct measure to promote farmers' welfare.
 Strategy involved
 increase in productivity through better technology and varieties
 subsidies on farm inputs;
 public investments in and for agriculture; and
 facilitating institutions.
 Key Findings : 45 per cent increase in per person food production : Last 50 years – food
production multiplied by 3.7 times.
 made India food self-sufficient at aggregate level
 also a net food exporting country.
 Farmers' income remained low in relation to income of those working in the non-farm
sector.
(SOURCE : NITI AYOG)

Impact of low level of farmers’ income
• Low level of farmers’ income and disparity between
income of a farmer and non-agriculture work.
• Agrarian distress and sharp increase in number of farmers
suicides (1995-2004) due to:
o Losses from farming
o Shocks in farm income
o Low farm income
• Government constituted “National Commission of
farmers”
• 5 reports & “Draft National Policy for farmers”.
• “Success in agricultural progress should be measured by the growth
of farmers incomes and not just by production figures”.

Doubling of Farmers’ Income
“I wish to double the income of farmers by 2022 when
India will celebrate 75 years of its Independence”
Prime Minister
while addressing farmers rally
at Bareilly (Feb 28, 2016)
Budget 2016-17
“We are grateful to our farmers for being the backbone
of the country’s food security. We need to think
beyond food security and give back to our farmers a
sense of income security. Government will, therefore,
reorient its interventions in the farm and non-farm
sectors to double the income of the farmers by 2022.”
Finance Minister Budget Speech, February 29,2016.

Sources of Growth in Farmers' Income
 10.4% annual growth rate required
 on-going and previously achieved rate of growth in
farm income needs acceleration.
 Major sources of growth:
 improvement in productivity,
 resource use efficiency or Total Factor Productivity,
saving in cost of production
 increase in cropping intensity,
 diversification towards high value crops,

Production Centric
 Need to raise output through concerted efforts on increasing productivity,
TFP, input management, resource conservation
 Major contributors
 Pradhan Mantri Krishi Sinchai Yojana;
 Soil health card, Neem Coated Urea
 Prampragat Krishi Vikas Yojana.
 Integrated farming systems important
 Like paddy-cum-fish culture in eastern India and NE
 Investment and subsidies in few technologies like poly-houses may help
multiply the returns
 Need for Risk Mitigation: insurance against crop and income loss
 Pradhan Mantri Fasal Bima Yojana
 Role of ICAR and SAUs crucial

Post-harvest Management Centric
 Need for suitable strategies for reducing post
harvest management to reduce crop losses
 Required value addition and processing
 States like MP established processing units in
the major producing clusters

Marketing Related
 Essential to ensure whether the increased
production is converted to money?
 Need for integrated and value chain approach
 e-NAM would prove to be game changer
 Market linkages and reforms essential
 Price uncertainty needs to be given due priority
 Effective procurement strategies like UP
 Estimation of regional, national and
international demand to avoid the glut situations
preventing the situation of price crash

“The action of performing a series of mechanical or
chemical operations on food in order to change or
preserve it”.

SOURCE : MINISTRY OF FOOD PROCESSING, G.O.I

overview
India has arable land of 184 million hectares and produces
annually 90 million tonnes of milk
150 million tonnes of fruits and vegetables
485 million livestock, 204 million tonnes food grain
6.3 million tonnes fish, 489 million poultry and 45,200 million
eggs
processing level is very low i.e. around 2.20% in fruits and
vegetables, 35% in milk, 21% in meat and 6% in poultry products
India's share of processed food is about 1.6%.
Hence, there is immense potential for growth
in this sector.

Types of Food Processing
Fruits and Vegetable Processing
 The capacity of fruits and vegetables processing increased from 1.1million tons in 1993
to 2.1 million tons in 2006.
Meat and Meat Processing
 Present processing level of buffalo meat is estimated at 21 %, poultry 6 %, and marine
products 8 %.
Dairy Processing
 Milk production is over 90 million tonnes. Per capita milk consumption is 75 Kgs.
Fish Processing
 Long coast line of over 8000 kms., 50600 sq. kms of continental shelf area and 2.2
million sq. km. of exclusive economic zones, India is rich fishery resources.
Consumer Food Industries
 Production is about 4.00 million tons per year.
 During the year 2005-06, financial assistance was sanctioned by Ministry of Food
Processing for 27 consumer food-processing units.
 The total inflow of FDI in FPI sector up to 2005-06 was € 958 million

Major Schemes by Central Govt.

SOURCE : MINISTRY OF FOOD PROCESSING , G.O.I.

SOURCE : MINISTRY OF FOOD PROCESSING , G.O.I.

SOURCE : MINISTRY OF FOOD PROCESSING , G.O.I.

SOURCE : MINISTRY OF FOOD PROCESSING , G.O.I.

SAMPADA (Scheme For Agro-Marine Processing And
Development Of Agro-Processing Clusters)
 The Cabinet Committee on Economic Affairs, chaired by the Prime
Minister Shri Narendra Modi has given its approval for re-structuring
the schemes of the Ministry of Food Processing Industries (MoFPI)
under new Central Sector Scheme – SAMPADA (Scheme for Agro-
Marine Processing and Development of Agro-Processing Clusters) for
the period 2016-20 coterminous with the 14th Finance Commission
cycle.
 SAMPADA with an allocation of Rs. 6,000 crore is expected to leverage
investment of Rs. 31,400 crore, handling of 334 lakh MT agro-produce
valuing Rs. 1,04,125 crore, benefit 20 lakh farmers and generate 5,30,500
direct/ indirect employment in the country by the year 2019-20.
 The objective of SAMPADA is to supplement agriculture, modernize
processing and decrease agri-waste.
 (SOUCRE : PRESS TRUST OF INDIA)

Training Scheme by Dept of Horticulture and
Food Processing, Govt of U.P.
 15 days short term fruit presrvation training under non-
plan side
 Enterpreneurship development training
 Employment through Dhabha/fast food/Resturent training
 Quality control and hygiene related awareness training
plan
 National food processing mission
(SOURCE: Dept of Horticulture and Food Processing, Govt of U.P.)

Economic analysis
COMPONENTS COST
PAPAD ROLLER MACHINE Rs. 25,000 (1 unit)
POTATO 40 KG PER day @10/kg 40X10X25=Rs. 10000
SALT 100GM/KG 40X100= 4000 =4 KG @ 20 = Rs. 80
SPICES Rs. 500
MICELANEOUS Rs. 2000
Total cost Rs. 37,580(including fixed cost)
Cost (excluding machine cost) Rs 12,580
Income @200/kg 200x40x25 =Rs. 20,000/month
Net income Rs. 7,420

Krishna Yadav : Traveling from road to road till
becoming the owner of a four-storey factory
SOURCE : IFFCO WEBSITE

About Krishna Yadav
 Mrs. Krishna Yadav is a successful
food processing entrepreneur living
in Najafgarh, Delhi. Krishna, a
resident of Bulandshahr in Uttar
Pradesh, had come to seek Delhi's
livelihood with his three children
when her husband's job was not in
1996. Promotional measures and
advice from the scientists of the
Indian Council of Agricultural
Research enabled them to establish
their famous food processing
enterprise Krishna Pickle, which not
only became a means of livelihood
for his family, but also from the
previous fourteen years (2002-16)

CURRENT STATUS
 After the start of Karoda's
pickle and candy making,
today they produce at least 87
different types of different
types of chutney, pickle and
marmalade. At present, his
enterprise has about 500
quintals of fruits and
vegetables processing, whose
annual business is above one
crore rupees which has
provided employment to
some others.
 (SOURCE :IFFCO )

Krishna : Role model for others
 She regularly participates
in exhibitions, fairs,
seminars and conferences,
so that their products are
well demonstrated, and
their recognition as an
entrepreneur also
strengthens. This
innovative strategy is to
establish a brand. IARI
scientists have had a big
role in motivating them as
an entrepreneur

ADVANTAGES
 Regular income for farmers
 Increase in self life
 Widen the marketing availability
 Increase the standard of living of farmers
 Creates employebility

References
 NITI Aayog website : niti.gov.in
 Ministry of food processing website : mofpi.nic.in
 Department of Horticulture and Food
Processing, Uttar Pradesh website :
uphorticulture.gov.in/
 IFFCO live : www.iffcolive.com/

THANKS!!