agriculture policies & reforms in india
TRANSCRIPT
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REFORMs & policies inINDIAN AGRICULTURE
Presented by
Pricila Sunkari
Prachi Angwalkar
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REFORMS IN AGRICULTURE
A common criticism of Indias economic reforms is that they have been
excessively focused on industrial and trade policy, neglectingagriculture which provides the livelihood of 60 percent of the
population.
The reduction of protection to industry, and the accompanying
depreciation in the exchange rate, has tilted relative prices in favor of
agriculture and helped agricultural exports.
The index of agricultural prices relative to manufactured products has
increased by almost 30 percent in the past ten years.
Public investment declined, this was more than offset by a rise in
private investment in agriculture which accelerated after the reforms.
However, there is no doubt that investment in agriculture-related
infrastructure is critical for achieving higher productivity and this
investment is only likely to come from the public sector.
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EC
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Since July, 1991 the country has taken..
The New Economic Policy (NEP-1991) introduced..
Salient features of NEP-1991.
The GATT Agreement signed in.
IMPACT OF ECONOMIC REFORMS
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IX
P
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T
E
GY
The agricultural development strategy for the Ninth Five Year
Plan..
The Strategy to ensure food security
The Ninth Plan Target is..
In the coming millennium.
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P
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India is endowed with
India has a total geographical area .
Development of irrigation potential .
Management of Soil Resources is essential ..
Development of livestock has been
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IMPACT OF
GLOBALISATION
The liberalization of Indias economy was adopted by India in 1991
The reforms sought to gradually phase out liberalization,
privatization ,globalization.
Reforms in the agricultural sector in particular came under severe
criticism in the late 1990s, when 221 farmers in the south Indianstate of Andhra Pradesh committed suicide.
Andhra Pradeshs experience particularly critical in this debate
because it was headed by Chief Minister Chandrababu Naidu,
who pursued liberalization with enthusiasm.
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7 STEPS TAKEN BY THE GOVERNMENT
To begin with government took lead in providing various facilities on its own.
In course of time different types of activities were entrusted to specificpublic agencies.
The government abolished the zamindari system. It was followed with the
consolidation of small holdings to make them economically viable.
Another important input was the widespread use of radio and television
for acquainting farmers in new and improved techniques of cultivation.
The crop insurance was another step to protect the farmers against losses
caused by crop failure on account of natural calamities like drought, flood,
hailstorm, cyclone, fire, diseases etc.
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Easy availability of capital or investment input through a well-knit network
of rural banking and small scale cooperative societies with low interest
rates were other facilities provided to the farmers for modernization of
agriculture.
Special weather bulletins for farmers were introduced on radio and
television.
The government announced minimum support price for various crops
removing the elements of uncertainty. It ensures minimum price for the crop
grown by the farmers.
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INTRODUCTION TO POLICY
REFORMS
India was a
latecomer
Economic
reforms
Earnest only in
1991
Indias
economicPost-reforms
period
Positive
features
The average
growth rate
Ten year
period from
1992-02
6.0
percent
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POLICY
CHALLENGES
PRICE POLICY India has done well in protecting the consumers from global food prices
In the post-reform period, terms of trade increased initially, declinedduring 1999 to 2004. It was 106 in 1997-98. In 2006-07 it was only 102.
Prices play important role in cropping pattern shifts and alsoincrease in private investments in agriculture.
INVESTMENTS AND SUBSIDIES
Investment in irrigation and rural infrastructure is importantfor agricultural growth.
public investment in agriculture is lower than the requirementsneeded for achieving 4% growth. subsidies continue to mount, atcost of investment.
Subsidies led to highly wasteful use of canal water, ecological
degradation from water logging, salinity, pollution, over drawl of groundwater
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POLICY & REGULATORY
FRAMEWORKF D I
100 % of FDI is allowed under the automaticroute in floriculture, horticulture,development of seeds, cultivation ofvegetables and mushrooms under
uncontrolled conditions and services relatedto the agriculture and allied sectors.
100 % is allowed in the tea sector, includingtea plantations under the government routesubject to the following conditions:
Compulsory divestment of 26% equity of thecompany in favour of an Indian partner/thepublic within a period of five years.
Prior approval of the State Government, in theevent of any land future use change.
05
1015
202530
plans layout
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POLICY RECOMMENDATIONS
WTO is
receiving the
deepest
Affecting themajor sectors
of Indian
economy
Intensively in
the coming
years
A major
concern
growing
Impact of
WTO
Dominate
the Indian
agriculture
The challenge
to policy
makers
Protect
Indian
agriculture
Impendi
ng WTO
threat
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INDIAN FARMERS NOT
BENEFITTING FROM W.T.O
AGREEMENT
Despite clear evidence that Indian farmers do not gain fromthe implementation of the trade liberalization process
under the World Trade Organization's Agreement onAgriculture, and are in fact badly hit by it
Five years after the World Trade Organization (WTO) cameinto existence, the anticipated gains for India from thetrade liberalization process in agriculture are practically
zero. The kind of export subsidies that need to be pruned is not
provided in India.
India was forced to either phase out or eliminate thequantitative restrictions (QRs) on agricultural commodities
and products.
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MARKETOVERVIEW
POST INDEPENDENCE
GREEN
REVOLUTION
NATIONALAGRICULTURAL
POLICY
ECONOMIC
REFORMS
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PERFORMANCE OF THE AGRICULTURE
SECTOR DURING THE CURRENT 5 YEAR
PLAN (2007- 2011)
During the first three years of the current Five Year Plan, the
griculture sector (including allied activities) recorded an average
growth of 2.03 per cent against the Plan target of 4 per cent per
annum. Things are looking bright in the current year with a relatively
good monsoon and the agriculture-sector is expected to grow at
5.4 per cent as per the 2010-11 advance estimates.
The agriculture sector growth in the first four years of the Plan isestimated at 2.87 per cent.
In order to achieve the Plan target of average 4 per cent per
year, the agriculture sector needs to grow at 8.5 per cent during
2011-12.
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ConclusionAgriculture is expected to be a point of focus for the private sector in
India, as a number of private players are expected to venture into
organic farming, contract farming, and setting up hubs for theprocurement of farm produce.
Increased corporate investment in this sector is expected to offer a
new frontier of growth across many areas such as economies of scale
through advanced models of farming, effective distribution systems
and food security.
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