1. ASIA PACIFIC INSTITUTE OF MANAGEMENT
STUDIES
SUBMITTED TO— SUBMITTED By—
Pooja Verma SECTION-H
GROUP-8
Debojit-66
Abhisek-03
Sritanu-57
Krishnakant-25
Biswajit-12
2. INDIA AT GLANCE
General Information
• India is a Union of States with parliamentary system of Government
• Land area: 3.29 million square kilometers
• Capital: New Delhi
• Population: 1.027 billion (March 1, 2001)
• Climate: mainly tropical with temperature ranging from 10o – 40o C in most
parts
• Time zone: GMT + 5 1/2 hours
• Major international airports: New Delhi, Mumbai, Chennai, Kolkata,
Bangalore, Hyderabad, Thiruvananthapuram
• Major ports of entry: Chennai, Ennore, Haldia, Jawaharlal Nehru, Kolkata,
Kandla, Kochi, Mormugao, Mumbai, New Mangalore, Paradip and Tuticorin,
Vizag.
Basic Economic Statistics
• GDP at current prices (2007-08): $ 1.16 trillion
• GDP (PPP) (2006) = US $4156 (5th largest in the world)
• GDP growth rate (2007-08) : 9%
• Exchange rate: Rs.49.77/$ (as on October 29, 2008)
• Foreign Exchange reserves: US $273.89 billion (as on 17.10.2008)
• Exports (2007-08): US $159 billion, Growth Rate: 25.8 %
• Imports (2007-08): US $239.65 billion, Growth Rate : 29%
• Foreign Direct Investment (2007-08): US $32.44
• Portfolio Investment (2007): US $17.23 billion
Investment Outlook
A number of studies in the recent past have highlighted the growing
attractiveness of India as an investment destination. According to the study by
Goldman Sachs, Indian economy is expected to continue growing at the rate
of 5% or more till 2050. Indian economy is slated to become the fourth largest
economy by 2050. Some other conclusions are listed below:
• 2nd most attractive destination - ATKEARNEY Business Confidence Index,
2007
• India can sustain 10% growth rate-OECD Survey, 2007
India is the second most attractive location for foreign direct investment-
UNCTAD's World Investment Report, 2008.
• PriceWaterHouseCoopers report, March 2008 states that India will be 90% of
the US
3. economy by 2050.
ECONOMIC SECTORS IN INDIA
Service Sector Auto & Auto Components Sector
Construction Sector Fertilizers Sector
Aviation Sector Banking and Financial Sector
Engineering Sector FMCG Sector
Cement Sector Chemicals Sector
Media Sector Cement Industry
Paper Sector Chemical Industry
Pharmaceuticals Sector Construction Industry
Real Estate Sector Engineering Industry
Retail Sector Fertilizer Industry
Shipping Sector Paper Industry
Software Sector Pharmaceutical Industry
Steel Sector Real Estate Industry
Sugar Sector Shipping Industry
Aviation Industry Software Industry
Banking and Finance Industry Steel Industry
4. Media Industry Sugar Industry
US Industrial Sector Textile Industry
Defining Economic Growth
Economic growth is growth in the level of national income. There are
various measures of national income, but the one used in the Economy
model is gross domestic product. We measure growth as the percentage
change in GDP. However, it is very important that we only take the
percentage change in real GDP. This means the change in GDP after
inflation has been taken into account.
The simplest definition of economic growth is an increase in real gross
domestic product (GDP) (that is, GDP adjusted for inflation). The growth
rate of real GDP is the percentage change in real GDP from one year to the
next. We can express the rate of growth in, for example, the period
2007-2008, as follows:
Growth rate of GDP = [GDP(20007) - GDP(2008)]/
GDP(2007) × 100
5. Agriculture in India
One of the biggest success stories of independent India is the rapid strides
made in the field of agriculture. From a nation dependent on food imports
to feed its population, India today is not only self-sufficient in grain
production but also has substantial reserves. Dependence of India on
agricultural imports and the crises of food shortage encountered in 1960s
convinced planners that India's growing population, as well as concerns
about national independence, security, and political stability, required self-
sufficiency in food production. This perception led to a program of
agricultural improvement called the Green Revolution. It involved bringing
additional area under cultivation, extension of irrigation facilities, the use of
improved high-yielding variety of seeds, better techniques evolved through
agricultural research, water management, and plant protection through
judicious use of fertilizers, pesticides and cropping practices. All these
measures had a salutary effect and the production of wheat and rice
witnessed quantum leap.
To carry improved technologies to farmers and to replicate the success
achieved in the production of wheat and rice a National Pulse Development
Programme, covering 13 states, was launched in 1986. Similarly, a
Technology Mission on Oilseeds was launched in 1986 to increase
production of oilseeds in the country and attain self-sufficiency. Pulses
were brought under the Technology Mission in 1990. After the setting up of
the Technology Mission, there has been consistent improvement in the
production of oilseeds. A new seeds policy has been adopted to provide
access to high-quality seeds and plant material for vegetables, fruit,
flowers, oilseeds and pulses, without in any way compromising quarantine
conditions. To give fillip to the agriculture and make it more profitable,
Ministry of Food Processing Industries was set up in July 1988.
Government has also taken initiatives to encourage private sector
investment in the food processing industry.
However, there are still a host of issues that need to be addressed
regarding Indian agriculture. Indian agriculture is heavily dependent on
6. monsoons. The monsoons play a critical role in determining whether the
harvest will be rich, average, or poor. The structural weaknesses of the
agriculture sector are reflected in the low level of public investment,
exhaustion of the yield potential of new high yielding varieties of wheat and
rice, unbalanced fertilizer use, low seeds replacement rate, an inadequate
incentive system and post harvest value addition.
There is an urgent need for second green revolution in Indian agriculture
and taking it to a higher trajectory of 4 per cent annual growth. Following
steps need to be taken to achieve this objective:
• Doubling the rate of growth of irrigated area;
• Reclaiming degraded land and focusing on soil quality;
• Improving water management, rain water harvesting and watershed
development;
• Bridging the knowledge gap through effective extension services;
• Diversifying into high value outputs, fruits, vegetables, flowers,
herbs and spices, medicinal plants, bamboo, bio-diesel, but with
adequate measures to ensure food security;
• Providing easy access to credit at affordable rates.
10. Tea , Tea Bags, CTC Teas
Tobacco & Tobacco Products
Beedi, Betalnut Leaves , Betalnut Supari , Bidi, Bidi Leaves , Chewing
Tobacco , Cigarettes, Arecanut, Jarda, Scented Tobacco , Smoking Items ,
Smokking Tobbacco , Snuff, Supari, Opium, Pan, Chatni, Pan Masala , Pan
Parag , Tobbacco, Tobbacco Products , Tulsi Mix , Gutkazarda, Tulsi Zarda ,
Tobacco, Zafrani Zarda
The post independence of Indian agriculture
The post-Independence history of Indian agriculture can be broadly
grouped into four periods. Before describing them, I should mention that
during the colonial era famines were frequent and famine commissions
were abundant. The growth rate in food production during the 1900-1947
period was hardly 0.1 per cent. Most of the important institutional
developments in agriculture emanated from the recommendations of
famine commissions. The great Bengal Famine of 1942-43 provided the
backdrop to India’s Independence.
It is to the credit of Independent India that famines of this kind have not
been allowed to occur, although our population has grown from 350 million
in 1947 to 1,100 million now.
Phase I: 1947-64
This was the Jawaharlal Nehru era where the major emphasis was on the
development of infrastructure for scientific agriculture. The steps taken
included the establishment of fertilizer and pesticide factories, construction
of large multi-purpose irrigation-cum-power projects, organisation of
community development and national extension programmes and, above
all, the starting of agricultural universities, beginning with the Pant Nagar
University established in 1958, as well as new agricultural research
institutions, as for example the Central Rice Research Institute, Cuttack,
and the Central Potato Research Institute, Shimla.
During this period, the population started increasing by over 3 per cent a
year as a result of both the steps taken to strengthen public health care
systems and advances in preventive and curative medicine.
The growth in food production was inadequate to meet the consumption
needs of the growing population, and food imports became essential. Such
11. food imports, largely under the PL-480 programme of the United States,
touched a peak of 10 million tonnes in 1966.
Phase II: 1965-1985
This period coincides with the leadership of Lal Bahadur Shastri and Indira
Gandhi, with Morarji Desai and Charan Singh serving as Prime Ministers
during 1977-79. The emphasis was on maximising the benefits of
infrastructure created during Phase I, particularly in the areas of irrigation
and technology transfer. Major gaps in the strategies adopted during Phase
I were filled, as for example the introduction of semi-dwarf high-yielding
varieties of wheat and rice, which could utilise sunlight, water, and
nutrients more efficiently and yield two to three times more than the
strains included in the Intensive Agriculture District Programme (IADP) of
the early 1960s. This period also saw the reorganisation and strengthening
of agricultural research, education and extension, and the creation of
institutions to provide farmers assured marketing opportunities and
remunerative prices for their produce. The National Bank for Agriculture
and Rural Development (NABARD) was set up. All these steps led to a
quantum jump in the productivity and production of crops such as wheat
and rice, a phenomenon christened in 1968 as the Green Revolution. C.
Subramaniam (1964-67) and Jagjivan Ram provided the necessary public
policy guidance and support.
The Green Revolution generated a mood of self-confidence in our
agricultural capability. The gains were consolidated during the Sixth Five
Year Plan period (1980-85) when for the first time agricultural growth rate
exceeded the general economic growth rate. Also, the growth rate in food
production exceeded that of the population. The Sixth Plan achievement
illustrates the benefits arising from farmer-centred priorities in investment
and in the overall agricultural production strategy.
Phase III: 1985-2000
This was the era of Rajiv Gandhi, P.V. Narasimha Rao and Atal Bihari
Vajpayee, with several other Prime Minister serving for short periods.
This phase was characterised by greater emphasis on the production of
pulses and oilseeds as well as of vegetables, fruits, and milk. Rajiv Gandhi
introduced organisational innovations like Technology Missions, which
resulted in a rapid rise in oilseed production. The Mission approach involves
concurrent attention to conservation, cultivation, consumption, and
commerce. Rain-fed areas and wastelands received greater attention and a
Wasteland Development Board was set up. Wherever an end-to-end
12. approach was introduced involving attention to all links in the production-
consumption chain, progress was steady and sometimes striking as in the
case of milk and egg production. This period ended with large grain
reserves with the government, with the media highlighting the co-existence
of “grain mountains and hungry millions.” This period also saw a gradual
decline in public investment in irrigation and infrastructure essential for
agricultural progress as well as a gradual collapse of the cooperative credit
system.
Phase IV: 2001 to the present day
Despite the efforts of Prime Ministers Atal Bihari Vajpayee and Manmohan
Singh, this phase is best described as one characterised by policy fatigue,
resulting in technology extension and production fatigues. No wonder that
the farmers, who keep others alive, are now forced to take their own lives
and 40 per cent of them want to quit farming, if there is an alternative
option.
The agricultural decline is taking place at a time when international prices
of major foodgrains are going up steeply, partly owing to the use of grain
for ethanol production. Land for food versus fuel is becoming a major
issue. For example, the export price of wheat has risen from $197 a tonne
in 2005 to $263 a tonne in 2007. Maize price has gone up from about $100
a tonne in 2005 to $166 a tonne now. International trade is also becoming
free but not fair. Compounding these problems is the possibility of adverse
changes in rainfall, temperature, and the sea level as a result of global
warming. Melting of Himalayan ice and glaciers will result in floods of
unprecedented dimensions in north India. If agricultural production does
not remain above the population growth rate and if the public distribution
system is starved of grain, there is every likelihood of our going back to
the pre-Independence situation of recurrent famines. The grain mountains
have disappeared and we are today in the era of diminishing grain
reserves, escalating prices, and persistence of widespread under-nutrition.
Where do we go from here?
The Green Revolution of the 1960s was the result of synergy among
technology, public policy and farmers’ enthusiasm. The post-60th
anniversary era in agriculture will depend upon our determination to
implement Jawaharlal Nehru’s exhortation, “Everything else can wait, but
not agriculture” in both letter and spirit.
If farm ecology and economics go wrong, nothing else will go right in
agriculture. This is the principal message of the current agrarian crisis. The
13. agrarian crisis is likely to spread if the economics of small-scale farming is
not improved. At the same time, State governments should not promote
policies for ecocides (that is, acts of ecological suicide such as free
electricity to pump groundwater, leading to the exhaustion of aquifers).
How can we resolve the crisis? The first and foremost priority should go to
making the era of farmers’ suicide history.
Agricultural Finance
Credit: Availability of adequate credit is vital for every sector and
agriculture is not an exception. In India, Commercial Banks, Cooperative
Banks, and Regional Rural Banks ( RRBs) are responsible for smooth flow
of credit to agricultural sector. But a huge unorganized market exists for
credit to agricultural sector in India, which provide timely fund to this
sector but at the exorbitant rate of interest. Among organized credit
disbursement to agriculture commercial banks play a vital role with a share
of about 70% where as cooperative sector and RRBs contribute 20% and
10 % respectively.Kisan Credit Card (KCC) scheme was introduced to
provide adequate and timely support from the banking system to the
farmers for their cultivation needs. This scheme has made rapid
progress and more than645 lakh cards issued up to October 2006.
The 'Farm Credit Package' announced by the Government of India in June
2004 stipulated doubling the flow of institutional credit for agriculture in
ensuing three years. Annual targets for this package are being surpassed in
the two consecutive years from its introduction and it is likely to surpass in
the third year also.
Insurance: Insurance is a prime necessity to mitigate uncertainty that
persists in agriculture. In India, agriculture is still affected by such factors,
which are beyond control of human being. So, there is a great need for
agricultural insurance in India. Keeping this in mind, Government of India
in coordination with the General Insurance Corporation of India (GIC), had
introduced National Agricultural Insurance Scheme (NAIS) from rabi
1999-2000 season. The main objective of this scheme is to protect the
farmers against losses suffered by them due to crop failure on account of
natural calamities. Agricultural Insurance Company of India (AICIL) which
was incorporated in December 2002 took over the implementation of NAIS.
AICIL introduced Rainfall Insurance Scheme called 'Varsha Bima' during
2004 southwest monsoon period. Varsha Bima provided for five different
options suiting varied requirements of farming community:
14. 1. Seasonal rainfall insurance based on aggregate rainfall from June to
September.
2. Sowing failure insurance based on rainfall between June 15 and August
15.
3. Rainfall distribution insurance with the weight assigned to different
weeks June and September.
4. Agronomic index constructed on the basis of water requirements of
crops.
5. A catastrophe option covering extremely adverse deviation of 50% and
above in rainfall during the season.
During kharif 2006, this Varsha Bima scheme is being implemented in
around 150 districts covering 16 states across the country. AICIL is also
piloting another weather related insurance product for mango and coffee.
Rural Infrastructure Development Fund (RIDF): RIDF was announced
by the Government of India in 1995-96 to boost public sector investment in
agriculture and rural infrastructure. The Fund is raised from the commercial
banks to the extent of their short fall in agricultural lending as priority
sector. The activities, which have been made eligible for loans from RIDF,
include rural roads and bridges, irrigation, mini and small hydel projects,
community irrigation wells, soil conservation, watershed development and
reclamation of waterlogged areas, flood protection, drainage, forest
development, market yard, godowns, apna mandi, rural haats and other
marketing infrastructure, cold storages, seed/agriculture/horticulture
farms, plantation and horticulture, grading and certifying mechanisms such
as testing and certifying laboratories, fishing harbors/jetties, reverine
fisheries, animal husbandry, modern abattoir, drinking water supply,
infrastructure for rural educational institutions, public health institutions,
construction of toilet blocks in existing schools and 'pay and use' toilets in
rural areas, village knowledge centers, desalination plants in coastal areas,
infrastructure for information technology in rural areas, and construction of
anganwari centers.
Micro Finance: Micro finance scheme has been introduced by National
Bank for Agriculture and Rural Development (NABARD), the apex bank for
agriculture and rural development in India, to improve the access of the
rural poor to formal institutional credit and other financial products. In all
547 banks, which include 47 commercial banks, 158 RRBs, 342 cooperative
banks are now actively involved in the operation of Self Help Group (SHG)-
Bank Linkage Programme to spread the facility of micro finance to the
needy small and marginal farmers and tiny entrepreneurs. The programme
15. has enabled nearly 329 lakh poor families in the country to gain access to
micro finance facilities from the formal banking system.
Capital Formation in Agriculture: The share of the agriculture sector's
capital formation in G.D.P. declined from 2.2% in the late 1990s to 1.9% in
2005-06. Stagnation or fall in the public investment in irrigation is partly
responsible for this fall. However there is indication of a reversal of this
trend with public sector investment in agriculture accelerating since
2002-03.The share of public investment in gross investment in agriculture
increased by 6.5 percentage points from 1999-2000 to reach 24.2% in
2005-06.
16.
17. Indian agriculture and WTO
THE BLAME FOR overflowing godowns and falling agricultural product prices
is being placed at the door of import liberalisation in general and the World
Trade Organisation in particular. The impending removal of the last of the
quantitative restrictions (QRs) on all agricultural products has added to the
fears for the future of Indian agriculture. While contractual obligations and
import liberalisation forced on the Government have indeed considerably
increased the exposure to the world market, there has been a tendency to
shift the blame for domestic problems on to external factors. There are
four different sets of WTO-related issues confronting Indian agriculture and
public debate frequently confounds them by seeing them as one when in
fact they are largely distinct.
The immediate challenge is what will follow the removal of QRs in April.
There is no reason to believe that there will be a flood of imports, only that
protection can no longer be provided by a ban on imports but by customs
duties. With the plugging of loopholes that existed in the form of zero
tariffs on cereals and dairy products, agriculture will for now continue to
enjoy a measure of protection. Where the Government could fail - as it did
in the case of edible oil imports - is by moving slowly on increasing tariffs
whenever global or domestic prices fall. However, the fairly high levels of
tariff protection that India can now invoke could be under threat when the
next phase of multilateral negotiations on agriculture begins at the WTO.
This is the second issue, on which the Government has approved a set of
proposals which will constitute India's initial negotiating stance. These talks
will be completed only years down the line. In its first proposals, the
Government appears to have chosen to place greater importance on
protecting agriculture than on liberalising farm exports. This is apparent
from the demand for constituting a ``Food Security Box'' that will facilitate
higher levels of protection and codify provisions that already exist in WTO
agreements. An influential section in the policy-making establishment has
been pushing for India to become an aggressive agricultural exporter. But
the twin of joining the side of the agricultural exporters at the WTO is a
lowering of import protection. While India continues to demand adequate
market access for its exports, the Government has wisely decided against
too aggressive a position on liberalisation of trade in agriculture. The third
issue is the functioning of the 1994 WTO deal on agriculture, which far
from boosting trade has been used by the rich countries to increase farm
subsidies. Experts in the country have demanded a review of this
agreement, but such a review underlies the preparatory work now going on
18. at the WTO for future talks. Besides, India has officially already made
proposals to address the ``implementation problems'' in the farm pact.
Going further may force India to offer more concessions on imports. A
fourth issue is intellectual property protection. Compelled as India was in
1994 to agree to provide sui generis protection to plant varieties it had the
choice of drafting its own legislation. This could have contained innovative
provisions to protect traditional rights. Yet, six years of procrastination and
inter-Ministry squabbling have meant that no legislation has been enacted,
opening the door to disputes at the WTO from other countries.
When imports have caused problems they have followed either leaden-
footed decision-making or the Government placing the interests of the
consumers above that of the farmers. Both were evident in the setting of
tariffs for edible oils (mainly palmolein) which were raised only recently.
The larger problems that Indian farmers face are the result of high costs,
low productivity, falling public investment, poor market development and
ultimately limited purchasing power among one billion people. All these are
the making of domestic policies.
19. Agriculture Growth Rate in India GDP
Agriculture Growth Rate in India GDP had been growing earlier but in
the last few years it is constantly declining. Still, the Growth Rate of
Agriculture in India GDP in the share of the country's GDP remains the
biggest economic sector in the country.
India GDP means the total value of all the services and goods that are
produced within the territory of the nation within the specified time period.
The country has the GDP of around US$ 1.09 trillion in 2007 and this
makes the Indian economy the twelfth biggest in the whole world.
The growth rate of India GDP is 9.4% in 2006- 2007. The agricultural
sector has always been an important contributor to the India GDP. This is
due to the fact that the country is mainly based on the agriculture sector
and employs around 60% of the total workforce in India. The agricultural
sector contributed around 18.6% to India GDP in 2005.
Agriculture Growth Rate in India GDP in spite of its decline in the share of
the country's GDP plays a very important role in the all round economic
and social development of the country. The Growth Rate of the Agriculture
Sector in India GDP grew after independence for the government of India
placed special emphasis on the sector in its five-year plans. Further the
Green revolution took place in India and this gave a major boost to the
agricultural sector for irrigation facilities, provision of agriculture subsidies
and credits, and improved technology. This in turn helped to increase the
Agriculture Growth Rate in India GDP.
The agricultural yield increased in India after independence but in the last
few years it has decreased. This in its turn has declined the Growth Rate of
the Agricultural Sector in India GDP. The total production of food grain was
212 million tonnes in 2001- 2002 and the next year it declined to 174.2
million tonnes. Agriculture Growth Rate in India GDP declined by 5.2% in
2002- 2003. The Growth Rate of the Agriculture Sector in India GDP grew
at the rate of 1.7% each year between 2001- 2002 and 2003- 2004. This
shows that Agriculture Growth Rate in India GDP has grown very slowly in
the last few years.
20. Agriculture Growth Rate in India GDP has slowed down for the production
in this sector has reduced over the years. The agricultural sector has had
low production due to a number of factors such as illiteracy, insufficient
finance, and inadequate marketing of agricultural products. Further the
reasons for the decline in Agriculture Growth Rate in India GDP are that in
the sector the average size of the farms is very small which in turn has
resulted in low productivity. Also the Growth Rate of the Agricultural Sector
in India GDP has declined due to the fact that the sector has not adopted
modern technology and agricultural practices. Agriculture Growth Rate in
India GDP has also decreased due to the fact that the sector has
insufficient irrigation facilities. As a result of this the farmers are dependent
on rainfall, which is however very unpredictable.
Agriculture Growth Rate in India GDP has declined over the years. The
Indian government must take steps to boost the agricultural sector for this
in its turn will lead to the growth of Agriculture Growth Rate in India GDP.
21. Agriculture in Interim Budget 2009-2010
(Speech of Pranab Mukherjee, Minister of Finance February 16, 2009)
25. Never losing sight of our commitment to the welfare of Aam
Aadmi and recognizing that 60 per cent of our population lives in villages,
focused attention has been given by our Government to the agriculture
sector:
(i) In the period between 2003-04 and 2008-09, our Government
increased the plan allocation for agriculture by 300 per cent.
(ii) The Rashtriya Krishi Vikas Yojana was launched in 2007-08 with an
outlay of Rs.25 thousand crore, to increase growth rate of agriculture and
allied sector to four per cent per annum during the Eleventh Plan period.
The scheme has encouraged State Governments to take initiatives to
develop the agricultural sector.
(iii) On June 18, 2004 our Government had announced a package for
doubling the flow of credit to agriculture. The credit disbursements have
already gone up from Rs.87 thousand crore in 2003-04 to about Rs.2.5
lakh crore in 2007-08 marking a three fold increase. To strengthen the
short-term co-operative credit structure, the Government is implementing
a revival package in 25 States involving a financial assistance of around
Rs.13 thousand five hundred crore. Government will continue to provide
interest subvention in 2009-10 to ensure that farmers get short term crop
loans upto Rs.3 lakhs at 7 per cent per annum.
(iv) The Agricultural Debt Waiver and Debt Relief Scheme for farmers,
announced in the last budget speech, was implemented by June 30, 2008
as scheduled. The Scheme has been able to restore institutional credit to
indebted farmers. As per early reports, the total debt waiver and debt relief
so far, amounts to Rs.65 thousand three hundred crore covering 3.6 crore
farmers.
(v) Our Government is committed to ensuring “food security” in the
country and meeting the food requirement of the poor under the Targeted
Public Distribution System (TPDS). In spite of higher procurement costs
and higher international prices during the last five years, the central issue
prices under the TPDS have been maintained at the level of July 2000 in
case of Below Poverty Line (BPL) and Antyodaya Anna Yojana (AAY)
categories and at July 2002 levels for Above Poverty Line (APL) category.
22. (vi) Our Government has ensured remunerative prices for the farmers
for their crops. Since 2003-04, Minimum Support Price (MSP) for the
common variety of paddy was increased from Rs.550 to Rs.900 per quintal
for the crop year 2008-09. In case of wheat the increase was from Rs.630
in 2003-04 to Rs.1,080 per quintal for the year 2009.
Key points of Agricultural sector in Interim Budget 2009-2010
• Focused attention to agriculture.
• Country’s agriculture outlook is encouraging.
• Agriculture grew by 3.7 per cent per annum
• Plan allocation for farm sector hiked 300 percent in past five years.
• Agriculture credit disbursement gone up.
• Agriculture credit has been increased three-fold to Rs.2,50,000 cr.
• Farm debt worth Rs.65,300 crore waived.
• Government will continue to provide additional subsidy to farmers
• Corpus of Rural Infrastructure Development Fund hiked to Rs.14,000
crore from Rs.5,500 crore
• Bharat Nirman, the time-bound plan for building rural infrastructure
receives Rs 40,900 crore. This package has six components – rural
roads, telephony, irrigation, drinking water supply, housing and
electrification.
23. Exports in Agriculture sector in 2007-08
According to the government's agri-trade promotion body, APEDA, India's
exports of agricultural and processed food products posted a 38 per cent
increase in the 2007-08 fiscal, bolstered by an increase in shipments of
coarse cereals like maize, jowar and barley. Export figures for agricultural
products touched US$ 6.59 billion in 2007-08, against US$ 4.79 billion in
the previous fiscal.
• According to a National Agricultural Cooperative Marketing Federation
of India Limited (NAFED), in the period April-August 2008, onion
exports reached 710,000 tonnes against 380,000 tonnes in the
corresponding period last year.
• According to the Coffee Board, India's coffee exports saw a
significant rise of 6 per cent during the first eight months of 2008.
• India's natural rubber exports have increased by 38 per cent in the
April-July 2008-09. Total exports increased to 23,998 tonnes during
April-July as against 14,816 tonnes in the corresponding period of
the previous financial year.
• Spice exports registered a 28 per cent increase in revenue in the first
quarter of 2008-09. Overall export earnings went up to US$ 329.60
million against US$ 260.57 million last year. Spice exports are likely
to rise by 18 per cent to US$ 1.3 billion in 2008-09.
• India exported 1.40 million tonnes of oil meal in the first three
months of the current financial year, up 70 per cent from the
corresponding period last year.
• India's sugar exports are expected to touch a record 4.2 million
tonnes (MT) in the production year upto September, exceeding
earlier estimates of 3.5 MT.
Contribution of various agricultural commodities in world exports has
been listed below:
Product Percentage share in World Export
Lac, gums, resins, vegetable products 10.0
Vegetable planting materials, vegetable products 4.9
Coffee, tea, mate & spices 3.7
Marine products 2.3
Residues, waste of food industry, animal fodder 2.1
Cereals 1.3
Fruits & nuts 1.1
24. Needed, a new deal: Progress in agriculture must be measured
principally by the growth rate in the net income of farmers.
About 35 districts identified by the Union Ministry of Agriculture as the
most affected by the agrarian crisis should be developed into Special
Agricultural Zones (SAZ), where integrated attention will be paid to natural
resources conservation and enhancement, eco-farming, improved local
level consumption to overcome malnutrition, and pro-small farmer
commerce. Most of these areas are rainfed and attention will have to be
paid to the generation of multiple livelihood opportunities. These areas
require the joint efforts of agricultural scientists, extension agencies, policy
makers, and mass media. Unless the various government departments/
Ministries dealing with agriculture, animal husbandry, fisheries, forestry,
environment, agro-processing and agri-business, irrigation, commerce,
rural development and finance work on the principles of convergence and
synergy, it will be difficult to find lasting solutions to the problems of small
farmers. The major purpose of a Special Agricultural Zone is ecological
restoration and the strengthening of the work and income security of farm
families with about one hectare or less of land. While the Special Economic
Zone (SEZ) is designed to enhance trade and export income involving
mega-investment by the private sector industry, the SAZ is needed to save
the lives and livelihoods of small farmers and landless labour by providing
key centralised services to support decentralised small-scale production as
well as market and income security. The SAZ concept will provide an
effective method to end farmers’ suicides by creating a platform for
collective action by all the departments and agencies concerned of the
Central and State governments, private sector industry and civil society
organisations. The present relief measures are fragmented both in design
and implementation, and unless they are replaced with a holistic approach,
with special emphasis on minimising risks and maximising net income, the
crisis will get worse.
While carefully designed SAZs can help end the era of farmers’ suicides,
the emerging larger agricultural production and food security crisis can be
managed if the following steps are taken to achieve an evergreen
revolution, leading to the enhancement of productivity in perpetuity
without associated ecological harm. The five basic components of an
evergreen revolution strategy are:
Conservation of prime farmland for agriculture and soil health care and
enhancement, issue of Soil Health Cards indicating the organic matter and
macro- and micronutrient status of the soil; Water harvesting,
25. management and conjunctive use of surface, rain, ground and treated
effluent water and safeguarding water quality;Credit and insurance reform;
Low-risk and environmentally friendly Green Technologies (such as
integrated pest and nutrient management) and the provision of the needed
inputs at the right time and place and at affordable cost;
Assured and remunerative marketing.
These five steps need to be taken and implemented in an integrated
manner, so that we generate an Ever-green Revolution Symphony. The
above steps are common to all farming zones. However, differentiated
steps are needed in the following three areas:
First, we must defend the gains already made in the Green Revolution
areas of Punjab, Haryana, and western Uttar Pradesh. This heartland of the
Green Revolution, or India’s fertile crescent, is in a state of acute ecological
and economic distress. Conservation farming and green agriculture should
replace exploitative agriculture. Public policies promoting ecocides should
be withdrawn and replaced with incentives for conservation farming. This
region will remain a major source of foodgrains for the public distribution
system, and hence needs urgent attention.
Secondly, we must extend the gains to additional areas like Bihar and the
entire eastern India, which possess good soil and water resources, as well
as to rainfed, hill and coastal areas. A second fertile crescent can be
created immediately in the region comprising Bihar, eastern Uttar Pradesh,
Chhattisgarh, West Bengal and Assam, where the untapped production
reservoir even with technologies on the shelf is high.
Finally, we should make new gains, particularly in the areas of farming
systems diversification and value addition. There is now a mismatch
between production and post-harvest technologies. This should end. A
quality literacy and value-addition movement should be launched.
26. CONCLUSION:
Sustainable Agriculture: Organic Farming
In the recent decades, there is an increasing demand of organic foods in
the developed world. Organic farming is an important pillar of sustainable
agriculture, which is beneficial for producers and consumers both. India
has a great potential for organic farming using traditional wisdoms
prevailing in the villages of India. In fact, a large section of Indian
Agriculture uses more or less organic method of farming using minimum
level of chemical inputs. Promotion of organic farming in India could prove
beneficial to increase share of Indian agricultural export in the world
export.
“ We should have targeted 10 per cent agricultural growth which
would have helped remove poverty in the long run rather than 3 per cent
at present.”- Dr. P.Chidambarm.
