INDIAN AGRICULTURE PERFORMANCE & CHALLENGES
SIRAJ HUSSAINVISITING SENIOR FELLOWICRIERINDIAN
AGRICULTUREPERFORMANCE & CHALLENGES
INTRODUCTION50% of Population dependent on Agriculture
Share of Agriculture in GDP only 14%
Agriculture, Horticulture, Livestock, Fisheries, Forestry meet
human need for food & nutrition
Agricultural growth reduces rural poverty more effectively than
industrial growth
PRODUCTION TRENDS FROM TE 2003-04 TO TE 2014-15Food Grain
:Increased from 200.27 MMT to 252.68 MMT (29%)Coarse Grains
:Increased from 32.35 MMT to 41.75 MMT (29%)Oil Seeds :Increased
from 20.23 MMT to 26.68 MMTCotton :Increased from 10.78 Million
bales to 35.48 Million Bales.
GROWTH IN ALLIED SECTORS 2009-10 TO 2013-14Fruits
:21%Vegetables:25%Spices:48%
GROWTH IN DAIRY SECTORMilk production increased from 86.2 MMT in
TE 2003-04 to 133 MMT in TE 2013-14
Egg production increased from 40 Billion in TE 2003-04 to 70
billion in TE 2013-14
BUT YIELDS ARE STAGNATINGIn Cotton, fast growth was primarily
due to Bt technologyAnnual Growth rates between 2001-02 &
2014-15:
Pulses & Oilseeds-2%Wheat
-1%Rice-1%Sugarcane-0.3%Cotton-14%
CHANGES IN CONSUMPTION PATTERNDue to economic growth diets
shifting to more proteins, milk, fruits, vegetables &
pulses
Reliance on import of pulses increasing as productivity is low
and pulses are mostly grown in rainfed areas on marginal lands
For edible oils also there is substantial dependence on
imports.
MAJOR INTERVENTIONS IN LAST TEN YEARSRashtriya Krishi Vikas
Yojana (RKVY)National Horticulture Mission (NHM)Bharat Nirman
Project for Rural InfrastructureCapital Infusion in Agriculture
Research & ExtensionE-National Agriculture MarketSoil Health
CardsPradhan Mantri Krishi Sinchayi Yojna
GDP & Agriculture (and allied sector)India -14%Rajasthan-30%
& AboveUttar Pradesh, Punjab, West Bengal etc -20-29%Gujarat,
Karnataka -15-19%Tamil Nadu, Kerala, Maharashtra-Less than 15%
CHALLENGES BEFORE INDIA :LAND & SOIL Cultivable area 140
Million ha
About 120 Million ha under varying degree of degradation
Acidity, Alkalinity, Salinity, Water Logging are major
problems
Demand for non agricultural use is increasing
VERY SMALL HOLDINGSas percentage of areaMarginal (Below 1
ha)-22.49%Small (1-2 ha)-22.05%Semi Medium (2-4 ha)-23.62%Medium
(4-10 ha)-21.17%Large (Approx 10 ha)-10.58%
Average holding -1.16 haAverage holding USA-176 ha
FRAGMENTATION OF LANDNumber of Marginal & Small Holdings
increasing
Number of Medium & Large Holdings decreasing
Small holdings provide insufficient income
Tenancy reforms & legalisation of leasing need of the
hour
Expert group under Dr. T. Haque will suggest legal framework of
leasing and will prepare a model Law
IRRIGATIONIndia has only 4% of worlds fresh water resourcesOnly
45% of cropped area is irrigated (63 million ha). Gap between
Irrigation potential (113 Million ha) and potential utilised (91
Million ha)Yields in rainfed area are very lowThe Government has
launched Pradhan Mantri Sinchai Yojana for more efficient use of
Water and bringing water to every fieldTop priority to completion
of ongoing Irrigation projects
SEEDS
Green revolution of 1960s 1970s primarily due to seeds
Success of Maize in 2000s
Increase in production of fruits & vegetables in 2000s also
due to hybrid seeds
Increase in seed replacement ratio:Self pollinated-25% to
33%Cross pollinated-33% to 50%Hybrid-100%
However recent years have seen fall in demand of foundation
seeds
FERTILISERSNutrient based subsidy introduced from 1st April,
2010
22 grades and P&K Fertilisers DAP, MAP, MOP, SSP, P&K,
Ammonium Sulfate, covered.
Import of subsidized P&K fertilisers is under open general
license
Import of urea is still canalised through Public Sector
Enterprises
15
SUBSIDY ON FERTILISERSIn 2016-17 Budget Estimate for fertiliser
subsidy is Rs. 73000 crores There are unpaid bills of Rs. 40000
croresUrea Price (Rs. per tonne)India- 85$ per tonneBangladesh-323$
per tonneChina-265$ per tonnePakistan-360$ per tonneReports suggest
smuggling of subsidised urea to BangladeshHighly skewed N. P. K.
ratioDebate in India is whether fertilsers should be sold at Market
price
AGRICULTURE CREDITInstitutional credit rose from Rs. 1,25,309
crore in 2004-05 to Rs. 7,11,621 crore in 2013-14.
Short term credit (Crop loan) is available at 4% interest (if
paid on time)
Medium & Long term Credit decreasing
But only 25% of operational holdings have access to crop
loans
CROP INSURANCEPradhan Mantri Fasal Bima Yojana launched in
January, 2016Area under insurance to be increased from 20% to 50%
in 3 yearsFarmers premium rates very lowKharif -
2%Rabi-1.5%Difference between actuarial rate & farmers rate to
be subsidised equally by Government of India & State
Governments.
AGRICULTURE MARKETINGMinimum support price announced for 25
crops but only wheat & paddy are procured by Govt agenciesMSP
for 2016-17 is:Wheat -Rs. 15250 per tonnePaddy-Rs. 14700 per
tonneMaize-Rs. 13650 per tonneAgriculture Produce Market Committees
dictate the system of sale by farmers
WHAT CAN WE EXPECT IN NEXT 3-5 YEARS ?E-National Agriculture
Market will become operationalAbout 50% of gross cropped area will
be covered under crop InsuranceProduction of Pulses may increase to
about 20 million tonnes (from 17 million tonnes now)48 major
irrigation projects will be completedWater conservation (Drip and
Sprinkler) / water harvesting will become mainstream Genetically
modified crops will be permitted.
AGRICULTURE IN BANGLADESHDid well in Agriculture in last few
years-Agriculture growth rate 4.6 % between 2010-201487% households
have income from AgricultureDid well to expand irrigation,
introduced high yielding variety of seeds, more efficient markets,
mechanisationAgriculture growth stimulates non farm income
PRIORITY ACTIONSACCORDING TO WORLD BANKDiversify from rice to
other crops but improve productivity of ricePromote non farm growth
and efficient value chainImprove connectivity between rural areas
and secondary citiesContinue to attain food securityPromote food
processing
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