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Report on the State of Indian Agriclutrue

Posted by Flora Sawita Labels: Agriculture and Farming, Agriculture Schemes, India, Policies, Report

Report on the State of Indian Agriculture presented to Parliament for the first time

Call for reforms in farm sector

Focus on Greater Investment, Inputs & Credit, Tech Transfer, Marketing Reforms and Sustainability

The report on the State of Indian Agriculture placed by the Government to the Rajya Sabha today, calls for wide-ranging reforms in agriculture sector to enable it to meet the growing demands and meet the challenges posed by various human and environmental factors.

The report was placed in the Lok Sabha yesterday. This is the first time such a report has been brought out.

As per the report, the thrust areas for the agriculture sector include enhancing public sector investment in research and effective transfer of technology along with institutional reforms in research set up to make it more accountable and geared towards delivery, conservation of land, water and biological resources, development of rainfed agriculture, development of minor irrigation, timely and adequate availability of inputs, support for marketing infrastructure, increasing flow of credit particularly to the small and marginal farmers.

The report highlights the fall in contribution of agriculture to the overall Gross Domestic Product (GDP), which has gone down to 13.9 per cent. It notes that this trend is expected in the development process of any economy. Yet, agriculture forms the backbone of development, as 52 per cent of India’s work force is still engaged in agriculture for its livelihood and is important for food security and inclusive growth.

The report highlights the records achieved in the production of foodgrains and many other crops. Among the major steps taken in the recent years for improving crop production and productivity, the report specially highlights the contribution made by the Rashtriya Krishi Vikas Yojana (RKVY) towards increasing public investment in agriculture and allied sectors. National Food Security Mission (NFSM) and the National Horticulture Mission (NHM) have also emerged as the path breaking interventions which have helped in achieving record production of cereals, pulses, oilseeds, fruits, vegetables and spices during the last two years. Bringing Green Revolution in Eastern India (BGREI) has been started to increase the productivity of the cropping system mainly rice, wheat, maize, pulses through promotion of innovative production technologies and agronomical practices addressing the underlying key constraints of different agro-climatic sub regions.

The ‘State of Indian Agriculture’ report emphasises the need to bridge the yield gap in low productivity regions by technology, inputs and other interventions. Raising productivity also assumes significance in view of increasing demand for land for industrialization, urbanization, housing and infrastructure.

The report takes note of the structural changes in the composition of Indian agriculture, leading to diversification into horticulture, livestock and fisheries since the 1990s. Analysing the likely high contribution of these high-value sectors, the report says that the shares of fruits & vegetables and livestock have shown an increasing trend in recent years and have been growing at much faster rates than the traditional crops sector. Given the rising share of high value commodities in the total value of agricultural output and their growth potential, this segment is expected to drive agricultural growth in the years to come. Bringing in reforms to streamline domestic markets and expanding the infrastructure and institutions to connect local markets with national and global markets, will go a long way in improving India’s competiveness and the benefits from trade liberalization. Higher investment in basic infrastructure like roads, canal waters, watersheds, check dams, etc. will attract private investment in other areas of the supply chain.

Highlighting the importance of private sector investment, the report observes that the private sector responds much better and faster to the incentive structures. Hence, along with bringing in greater public investment in agriculture, there is a need for bringing in reforms in the incentive structure in agriculture.

Discussing the consequences of rising population pressure on farming and its capacity to provide employment, the report calls for creation of additional employment opportunities in the non-farm and manufacturing sectors, especially in agro based rural industries which have area specific comparative advantage in terms of resources endowment and development possibilities. This would require suitable skill development of the people so as to gainfully employ them in non- farm activities. This would make agriculture viable in a sustainable manner.

On the impact of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) on agriculture and farm labour, the report refers to the evaluation studies carried out recently which have shown that while MGNREGS has contributed toward water conservation and water harvesting structures, drought proofing and tree plantation, flood control, micro and minor irrigation works and land development which will have a positive impact on agricultural productivity, it has also led to a substantial increases in the wage rates of agricultural labourers, reduced the availability of labor for agricultural operations and increased the cost of cultivation. In order to optimize synergies and bring convergence between MGNREGA and schemes of Ministry of Agriculture, guidance has been issued to state governments.

The report cautions that water scarcity will intensify in future with increase in population and demand for food, and the current water use practices cannot be sustained over the long run. Inefficient water use in irrigation is also leading to environmental degradation via water logging and induced salinity. Irrigation efficiency in the systems needs to be improved. The report estimates that even a rise of 5 per cent irrigation efficiency can increase the irrigation potential by 10-15 million ha.

The report also focuses on the problems of imbalanced use of fertilizers, deteriorating soil health and the threats posed by climate change and hiighlights the recent measures initiated to tackle these issues.

On farm credit, the report calls for innovative ways to reach people still out of the umbrella of institutional credit. The report says that while the overall credit to agriculture has been growing phenomenally during the last few years, and the interest rates for farmers have also been reduced to 7 percent (4 percent after taking into account the 3 percent interest subvention for timely repayment of crop loans), yet the biggest challenge remains in terms of increasing access to credit, particularly for the bottom 40 percent. More innovative models are needed to reach this category as they rely largely on the informal sector for credit with high rates of interest.

The report calls for wide-ranging reforms in agricultural marketing. Imperfect market conditions and restrictions on the movement of agricultural commodities are not letting the farmers to realize the true value of their produce, whereas it is causing the consumer to pay a much higher price than warranted. The linking of small and fragmented farms with large-scale processors and retailers remains a challenge in the high value sector. With this in view Government has decided that assistance under National Horticulture Mission and Development and Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization Scheme for development of market infrastructure projects to State Agencies/APMCs would be subjected to waiving of market fees for perishable horticultural commodities. With a view to overcome this shortcoming and to bring in private sector investment and techno-managerial efficiencies, government is promoting Public Private Partnerships (PPP) in infrastructure development through ‘viability gap funding’ support, the report says.

MP:SB:CP: brief statement agri (13.3.2012)

(Release ID :80852)

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Enhanced output of vegetables, fruits comes with a price

Posted by Flora Sawita Labels: Agriculture Schemes, Fruit, India, Indian Institute of Horticulture Research (IIHR), Karnataka, Research Labs, subsidies, Vegetable

Villagers of Karnataka going in for high-yielding breeder seeds provided by ICAR labs

A scheme to boost production of vegetables, fruits and flowers has paid rich dividends in Karnataka villages, with several progressive farmers opting to grow the high-yielding breeder seeds provided by Indian Council of Agriculture Research (ICAR) labs for multiplication by public seed companies as well as the private sector, including multi-national companies. The idea is to set up in the next five years several seed villages with 20 select farmers each.

The subsidy-based regime which enables the horticulture institutes — in this case, the Bangalore-based Indian Institute of Horticulture Research (IIHR) — to commercialise their technologies, is bringing revenue to the institutes as well as raising farmers' incomes in pockets.

The drawback is that this technology-intensive scheme is pushing up the cost of vegetables and fruits for domestic consumers.

Under a buy-back agreement with farmers, the institute charges fees from farmers — 60 per cent of which goes to the scientist who developed the technology — and later sells the seeds to companies in the public and the private sector for multiplication, again at a 12 per cent royalty to the breeder.

The process works well, except that the cost of the seeds multiplies manifold as against the traditional or open-pollinated variety.

For example, a kg of high-yielding IIHR seed material of French beans sold to a farmer for Rs. 18 a kg is bought back at Rs. 60 a kg from the farmers and the seed comes to the market at a price of Rs. 80 a kg.

This, scientists admit privately, along with farm mechanisation, are factors contributing to the perennial high cost of vegetables and fruits in recent years which is hitting the middle-class consumers.

Although the programme needs to be worked upon to reduce costs, IIHR director Amrik Singh Sidhu told visiting journalists from New Delhi that it would enable India to achieve a growth rate of over four per cent in the 12th Plan. It would also help India to become the leading producer of fruits and vegetables in the world with improved varieties.

As of now, India at number two produces about 211 million tonnes of fruits and vegetables annually, which is half of China's output. There is potential to improve productivity with 500 public sector-developed varieties of high-yielding seeds in horticulture sector.

The institute has developed 125 varieties of vegetables and fruits and is working on perennial varieties that can maintain production round the year to maintain supplies and arrest price rise. Its latest achievements are release of high-yielding onion, French beans and tomato. There is also plans to develop brinjal seeds resistant to fruit and shoot-borer pest as against an MNC-developed Bt brinjal.

The farmers that the press team met were owners of large landholdings.

Normally, a farmer must be selected through the gram sabha, but that rarely happens. Only those farmers who have the clout, information or are big land owners get to become beneficiaries of the programme.

A visit to a capsicum farm in Dodaballapora village on the outskirts of Bangalore had a farmer, R. Krishna Naik revealing to us that the cost of a kilogram of yellow capsicum works out to Rs. 48 a kg at farm gate on account of the modern techniques and farm mechanisation involved in production of IIHR developed seeds. This, after claiming a grant of Rs. 8 lakh from the government for polyhouse cultivation, drip irrigation, fertigation and mulching (covering ground with plastic sheets for shade). The cost, he added, would go up once the government withdrew the subsidy.

A major shortcoming of the programme was that it was not demand-driven. Seed material was being accessed from the public sector at random and rather than assess the demand of consumers, the requirements of private seed companies and food processors were being given priority. To overcome this, IIHR will go in for Participatory Research Appraisal with consumers.

The IIHR plans to set up in the next five years, 50 seed villages with 50 acre land each belonging to 20 select farmers in each village for growing breeder seeds of 89 horticulture crops including tomato, French beans, cauliflower, cabbage and onions. The aim is to set up 60,000 seed villages all over the country during the 12th Plan from 2012-2017. A good plan but not cost-effective for consumers

The Hindu

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Mechanization, subsidies hold potential for revival of agriculture

Posted by Flora Sawita Labels: Agriculture Schemes, Mechanization, subsidies

Though agriculture has shown a decline due to rise in labour costs and a switch to other occupations, increasing use of machinery and availability of attractive subsidies holds a promise for rejuvenation of the farm sector.

Paddy cultivation is the dominant crop, but cashew plantation is a major horticultural crop.

"There is more cultivation of paddy fields in recent years due to wide use of multi-task harvesters," a farmer said. With the state assembly elections looming ahead, some politicians have distributed free power tillers, mini power tillers and weed cutters. The use of harvesters, which drastically cut down costs and make reaping of paddy crops and bagging of grain easy, is provided free to farmers by some politicians.

The government has also provided an attractive subsidy of 75% on purchase of harvesters costing 18 lakh and above, provided the farmers form self help groups.

After neglect of agriculture for a couple of decades or more, the government intervened at last, offering a plethora of schemes in Budget 2011-2012. Chief minister Digambar Kamat increased the plan outlay from 23.94 crore in 2009-10 to 51.57 crore in 2010-11 to help the farm sector.

Construction of poly houses and green houses under national horticulture mission will be subsidized by 90%. While the Union government provides 50% subsidy, the state will now chip in with 40%.

As per present plans, a onetime grant of 80,000 per hectare is proposed to all groups who take up vegetable cultivation in a big way. The expenditure towards seeds, fertilizers, water pump, pipeline, fencing will be covered through a budget allocation of 200 lakh.

The allocation for agriculture is just over 4% of the total budget. "As per the eligibility clause, every state has to provide at least a 4% share of the total state budget for agriculture in order to avail funds under the Rashtriya Krishi Vikas Yojana (RKVY)," an agriculture department official said. In the past, Goa could not fulfill this criterion.

Darryl Pereira, a progressive farmer said. "All these schemes are very favourable toward revitalizing agriculture, but they have to be properly used." Farmers say there is no separate cell to usher in full-scale mechanization as in other states, which entrust it to universities or separate cells.

The lack of an agriculture policy to freeze cultivable land for farm sector is sorely felt. "Without an agriculture policy, it will be difficult to achieve the objectives of promoting agriculture," a social activist said.

Fragmentation of land due to splitting of families into nuclear units is another setback. "The government has to determine that land above one acre is agricultural land to prevent further fragmentation," an agriculture official agreed.

The pressure on agricultural land in a state witnessing a boom in construction and tourism sector is enormous. Environmentalists raised concerns over marking of agricultural land for housing in Regional Plan 2021. "If India or Indians are acquiring farming land abroad, it is a fundamental requirement that we protect every inch of our own land," Goa farmers collective member, Abhijeet Prabhudesai said. Food security ahead will be a big concern, he said, questioning the rationale behind allowing conversion of forests and agricultural lands.

Darryl Pereira said it was a positive sign but he feels more can still be allocated. "I feel more should have been allocated because agriculture needs a major shot in the arm. There is much to do there is a mountain of task for revitalization of agriculture," he said. Activists in farm sector feel a high powered expert committee should be set up to advise the government and agriculture department officers to revitalize agriculture.

The Times of India

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CM to seek House members' opinion for agriculture map

Posted by Flora Sawita Labels: Agriculture Schemes, Bihar, Policies

PATNA: CM Nitish Kumar on Tuesday assured the state legislative assembly that strength and weaknesses in implementing agriculture schemes in Bihar would be assessed for proper implementation of the second agriculture road map for development with efficient use of its rich soil and magnificent climate.

He said that soil health card for the respective agriculture farms would be given to the farmers in an effort to maintain good soil health to get higher yield from farms, he said.

Nitish said that the target is to provide food and nutritional security to the people and handsome return to the farmers on their investment of money, brain and labour in the farms and allied economic activities through rainbow revolution.

After conclusion of the special discussion, the CM assured the House that the valuable suggestions of the assembly members would be incorporated to sharpen the second map. Giving innumerable suggestions, with pointers about weaknesses as well, leader of the Opposition Abdul Bari Siddiqui said that he was opposed to any politics related to the cause of the farmers, and so he gave his own suggestions.

On this, Nitish said that all parties should join hands to support the map as development was imperative as it aimed at bringing in rainbow revolution with all its dimensions to provide far greater benefit to the farmers than the first green revolution in north India, when imported seeds and chemical fertilizers were used to raise farm production. The CM said that in Bihar the government would promote organic farming and vermi culture to raise farm production mixing little of chemical fertilizers, as per need.

Nitish said that the Indian Council of Agriculture Research (ICAR) had declared Bihar model of maintaining pace in seed replacement rate, providing better seeds to the farmers, under Mukhya Manti Tivra Beej Yojana, as the best and that this should be applied across the country.

The CM contended that the Central government has adopted bad policy as it was promoting sugarcane production in western India where each crop needs 29 times irrigation while neglecting Bihar where only three irrigation is needed. Nitish said that the state lacked proper agriculture extension network and advanced agriculture technology which had to be overcome while implementing the second map which was planned by his agriculture cabinet, comprising 18 departments. The agriculture cabinet would take effective decisions by monitoring the implementation of the map through respective departments, he said, adding that in this way in the next five years it can modify the strategy.

The CM said that stress would be on processing of agriculture produce with primary processing by farmers and high-end processing through food processing industries. Nitish said that stress would be laid on efficient and optimal use of water through lift irrigation and sprinklers and there will be dedicated feeder for power supply for irrigation of agriculture farms.

The Times of India

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Report on the State of Indian Agriclutrue

Enhanced output of vegetables, fruits comes with a price

Mechanization, subsidies hold potential for revival of agriculture

CM to seek House members' opinion for agriculture map

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