AGRICULTURE

POLICY IN

INDIA

Agricultural scenario Agriculture is the largest provider of

livelihood in rural India It contributes 25 percent to India’s GDP It is still dependent primarily on the monsoons The growth in agricultural production has been

stagnant for the past several years. The drought in north and western parts in 2009

created shortages in supply of food grains.

Factors Affecting AgricultureSmall and fragmented landholdingsDependence on the monsoonLack of international competitiveness of its

produceInadequate availability of electricity,

fertilizers, irrigation and pesticidesPoor access of the farmers to good roads,

market infrastructure, refrigerated transportation of goods

Conversion of agricultural land for residential and other land use purposes.

Macro-Management in Agriculture Planning

This represents a major shift from the programmatic to the Macro Management mode of planning and implementation to operationalise regionally differentiated strategies and ensure that limited financial allocations find timely and effective application in the intended areas

Technology Missions A Technology Mission for Integrated Development of Horticulture

in the North Eastern States including Sikkim was launched during 2001-02 with an outlay of Rs.239 crore.

The Scheme seeks to address all issues relating to the development of horticulture in the region covering research, development and marketing.

The mission has been extended to Himachal Pradesh, Uttaranchal and Jammu and Kashmir.

A Central Sector Scheme on Technology Mission for Coconut was launched for implementation during 2001-02. The Mission seeks to address issues like technology development, demonstration, processing, product diversification, market research and promotion.

Law on Multi-State Co-operative Societies

The Central Government has enacted a new Multi-State Cooperative Societies Act, 2002 to provide full functional autonomy and democratic management to co-operative societies.

Credit

Farmers now will have to pay a maximum interest rate of 9 per cent on bank loans up to Rs.50,000 for each crop.

Earlier, they had to pay a rate of 14 to 18 %

Grameen Bhandaran Yojana

A scheme of construction, renovation and expansion of rural godowns, called Grameen Bhandaran Yojana, was launched during 2001-02.

Programme for Agri-Infrastrucutral FacilitiesThe Government has announced a Rs 50,000 crore

programme for mitigating the difficulties, being faced by the agricultural sector.

The programme, to be spread over three years, will address issues like agri-infrastructural facilities, wasteland development, minor irrigation, functioning and viability of cooperatives, grading, certification, storage of agro-products, their processing, cold chains and modern abattoirs.

Under the programme, to be operated by the NABARD(National Bank for Agriculture and Rural Development), loans will be made available to borrowers at low competitive rates.

InsuranceThe National Agricultural Insurance Scheme, Aims at

protecting the farmers against crop losses suffered on account of natural calamities such as drought, flood, hailstorm, cyclone, pests diseases.

The Scheme is currently implemented by 22 States and 2 UTs.

The Seed Crop Insurance is currently being implemented in Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Chhatisgarh, Maharashtra, Uttar Pradesh, Uttaranchal and Gujarat.

Protection of Plant Varieties & Farmers’ Rights Act

The Protection of Plant Varieties and Farmers’ Rights Act provides for establishment of an effective system for protection of plant varieties and plant breeders and for encouraging the development of new varieties of plants.

The plant varieties will be registered for plant breeder rights, based on the criteria of distinctness, uniformity and stability.

National Seeds PolicyThe main features of the National Seeds Policy, 2002

include development of new and improved varieties of plants, timely availability of quality seeds, compulsory registration of seeds, creation of infrastructure facilities, quality assurance, promotion of seed industry, abolition of licensing for seed dealers, facility for import of best quality seeds, encouragement for export of seeds and creation of Seed Banks and National Seed Grid.

Mass Media Support for Agriculture Extension

The scheme aims at utilizing the vast mass media infrastructure available in the country for providing agriculture-related extension services.

Kisan Call Centres

The scheme aims at addressing queries and questions raised by farmers throughout the country.

The farmer can access a Call Centre through toll free lines by dialing 1551 any time.

The questions will be answered by agri-graduates and specialists.

Drought ManagementThe country faced a severe drought last year. In order to

mitigate drought conditions, the Government of India allocated 87.36 lakh MTs of food grains, free of cost, and provided cash assistance of Rs.4,214.95 crore under CRF and NCCF to the 17 drought affected States

Agriclinics and Agribusiness CentersThe scheme of Agriclinics and Agribusiness Centers was

launched in 2001-2002, with the objective of using unemployed agriculture graduates to provide extension services to farmers on payment basis by setting up their private ventures.

The Government of India provides training to agriculture graduates willing to set up such centers

Assistance for Sugarcane Farmers

The Government has announced a one time assistance of Rs.678.06 crore to Uttar Pradesh, Uttaranchal, Haryana, Punjab and Bihar to clear the cane arrears of sugarcane farmers for the 2002-03 season

Milk ProductionSeveral measures, initiated by the Government

to increase the productivity of livestock, have resulted in significant increase in the milk production to the level of an estimated 89.1 million tonnes in 2002-03 as compared to 17 million tonnes in 1950-51.

India has become the largest producer of milk in the world.

Agricultural researchAbout 400 improved varieties/hybrids of crops

have been released for realizing improved productivity and enhanced stabilized production.

Eighteen improved agricultural tools and equipment have been developed and standardized

Food Security Food security refers to the availability of food and one's access to it.

A household is considered food-secure when its occupants do not live in hunger or fear of starvation.

Effective price support operations for safeguarding the interests of the farmers.

Distribution of food grains throughout the country for public distribution system.

Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security

Public Distribution System The Public Distribution System is one of the important elements of

the Government’s ‘Food Security’ system.

PDS involves management of supplies of essential commodities and maintenance of their uninterrupted flow at affordable prices to the identified beneficiaries.

It also works as an instrument for moderating the open market prices of food.

PDS means distribution of essential commodities to a large number of people through a network of FPS on a recurring basis.

Commodities involved are:WHEAT

RICE

KEROSENE

SUGAR

Who Operates PDS?

By Central Govt: They are responsible for procurement, storage, transportation (up to the district headquarters) and bulk allocation of food grains.

By State Govt: They are responsible for distributing these food grains to consumers through a network of Fair Price Shops.

Targeted PDS In June 1997, the Government of India launched the Targeted

Public Distribution System (TPDS) with focus on the poor. Under the TPDS, States are required to formulate and implement foolproof arrangements for identification of the poor for delivery of food grains and for its distribution in a transparent and accountable manner

The scheme when introduced, was intended to benefit about 6 crore poor families for whom a quantity of about 72 lakh tonnes of food grains was earmarked annually. 

The identification of the poor under the scheme is done by the States as per State-wise poverty estimates of the Planning Commission for 1993-94 based on the methodology.