The unprecedented growth rate of 4.4 % in the agriculture and allied sectors in Q2 has shown that with the right policy initiatives and effective implementation strategies, the country can face the challenges of meeting the nutritional requirements of 17.5 % of the world’s population from just 2.3% of the world’s land, besides becoming an important player in the global agri commodities sector. Even with burgeoning population and increased pressure on land ,concerns about climate change and the vagaries of nature and soil stress , the Agriculture Ministry ‘s strategy of mobilizing higher investments, bridging yield gaps, timely and adequate supply of quality inputs (seeds, fertilizers, credit), soil health, special focus on oilseeds and pulses, crop diversification, micro irrigation, protected cultivation, Minimum Support Price Market intervention scheme, plant protection, mechanization and technology, natural resources management and extension reforms have reversed the trend of decline in growth of agricultural GDP.
Recent Policy Initiatives
Earlier this year, (April, 2010) the government had constituted a Core Group of Chief Ministers from states in different regions to provide recommendations on the agriculture development agenda. The Core Group met under the Chairmanship of the Prime Minister, and formed three working groups to deliberate on issues relating to Agriculture Production, Food and Public Distribution and Consumer Affairs. The prime Minister’s Council on Trade and Industry also set up a sub group on Enhancing Agriculture Production and Food Security. Ideas generated in these policy sessions have already started impacting implementation strategies.
Public Investments in Agriculture: The RKVY
The share of public investments in the GCF in agriculture and allied sectors has been going up significantly in the recent years. The Plan outlay on various schemes of DAC has increased substantially – from Rs 9865 crore in 2008-09 to Rs 17254 crore – in 2010-11 (BE). The increase is mainly due to substantially higher investments under RKVY which was launched in 2007-08 with the aim of boosting agricultural growth rate, and to incentivize states to increase public investments in agriculture and allied sectors. RKVY has succeeded in its objective of acting as a catalyst for pulling in more public investments for agriculture and allied sectors in the Plan outlays of state governments. For all states put together, this has gone up from 4.9 % before RKVY was launched to 6.4% in 2009-10.
Bridging Yield Gaps
To address the above, a new initiative to extend Green Revolution to the water surplus states in the eastern region was announced in this year’s budget with an initial outlay of Rs 400 crore under the RKVY. The programme, covering the states of Bihar, Chhattisgarh, Jharkhand, Eastern UP, WB, Orissa and Assam envisages the adoption of new seed varieties, farm machinery, integrated nutrient and pest management and knowledge based interventions from different agro climatic zones. Another initiative of ‘Sixty Thousand pulses and oilseeds villages’ in rain fed areas provides integrated interventions in areas of water harvesting, watershed management and soil health to enhance the productivity of dry land farming areas. After the Prime Minister’s visit to J&K, a special initiative to revive Saffron production in J&K was also announced within the ambit of RKVY.
Food Security
The primary focus of the NFSM is to ensure higher production and productivity of rice, wheat and pulses and to ensure enhanced incomes for farmers. At present NFSM covers 476 districts across 17 states. Under a new initiative , the A3P (Accelerated Pulses Production Programme ) ,one million hectares of potential areas for the major pulses crops –tur, urad, moong, gram and lentil – have been taken up for large scale demonstration of production and protection technologies in compact blocks.
Record Kharif Production 2010
Due to the steps taken by the DAC, the food grain production is expected to touch 115 million tonnes (+11 MT), pulses to 6 MT (+1.7) and sugar and oilseeds are also expected to be higher by 47MT and 1.6 MT respectively. Cotton production is expected to be higher by 95 lakh bales.
Crop Diversification and farm Incomes
The NHM (National Horticulture Mission) and the HMEH (Horticulture Mission for North east and Himalayan states focus on the holistic development of the horticulture sector in the country. Interventions include establishment of nurseries and Tissue culture labs, distribution of quality planting material, area expansion, precision farming, water resources, INM/IPM, GAP, organic farming, infrastructure support for cold chain logistics and forward integration with markets. Because of these interventions, the production of fruits and vegetables and spices has gone up by 26%, 22% and 11% respectively. A national Mission on Micro Irrigation has also been launched from June this year to ensure optimal use of water and nutrients through drip and sprinklers. The enhanced MSP for major commodities and MIS interventions have ensured that higher production and productivity translates into enhanced farmer incomes.
Quality Inputs
Timely provision of quality seeds at affordable prices has been assured through the Seed Village Programme and revamping of infrastructure for seed production and certification. The National Seeds Corporation and the State Farms Corporation of India have recorded impressive gains over the last two years. NSC has been accorded the status of a Mini Ratna among the PSUs. Under the National Programme for Management of Soil Health and Fertility, 239 STLs (Soil testing laboratories) have been established. The Department has ensured adequate availability of fertilizer and seeds for all the farmers.
Agricultural Credit
With government providing additional interest subvention of 2% to farmers who repay their loan as per schedule, the effective rate of interest on crop loans up to Rs 3lakh per annum is 5% per annum. This has given a boost to agricultural credit, and over 4.82 crore farmers were covered in the last FY. This year the target for agricultural loans is Rs 375,000 crore. It may also be mentioned that loans up to Rs 1 lakh per annum have been made collateral free. As such, state governments have been advised to ensure that Kisan Credit cards are issued to all eligible and willing farmers.
New Interventions
The new interventions made by the DAC in recent times include Nutrient Based subsidy in fertilizers, Weather Based Crop Insurance Scheme, Pilot Coconut Palm Insurance Scheme, Modified National Agricultural Insurance Scheme, Rehabilitation Package for Suicide Prone Districts, initiatives for Bundelkhand , Kuttanad, Idduki, revival package for the co-op sector, support to state extension reforms, establishment of agri clinics and agribusiness centres by agricultural graduates, Kisan call centre, portal development, strengthening of Agmark grading facilities , Grameen Bhandaran Yojana and the National centre for Cold Chain Development.
Terminal Markets
Last but not the least, terminal markets are coming up in states that have undertaken reforms in the APMC Act. These will ensure that the transactions are transparent , and farmers’ get a better deal, thereby adding to the prosperity of rural India.
Terminal markets have already been approved for Patna and Perundurai (TN). In- principle approvals have also been accorded for two more markets (Nagpur, and Madurai). A presentation has also been made to the Government of NCT of Delhi for a modern F&V chain in Delhi.
Agriculture sector is resurgent and laying the foundations for a prosperous India.