general agriculture part i

7/28/2019 General Agriculture Part I

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Agriculture

Importance of Agriculture in India

The following points emphasizes the importance of agriculture in Indian Economy-

(i) Share of Agriculture in National Income

Agriculture has got a prime role in Indian economy. Though the share of agriculturein national income has come down. Since the inception of planning era in the economy butstill it has a substantial share in GDP. The contributory share of agriculture in GrossDomestic Product was 55.4% in 1950-51, 52% in 1960-61 and is at present reduced to only24.5%. 24.5%.

(ii) Important Contribution to Employment

Agriculture sector, at present, provides livelihood to about 64% of the labour force.

(iii) Important Source of Industrial Development

Various important industries in India find their raw material from agriculture sector,cotton and jute textile industries, sugar, vanaspati, industries etc. are directly dependent onagriculture, Handloom, spinning, oil milling, rice thrashing etc. are various small scale andcottage industries which are dependent on agriculture sector for their raw material. Thishighlights the importance of agriculture in industrial development of the nation.

(iv) Importance in International Trade

Indias foreign trade is deeply associated with agriculture sector. Value of agricultureexports to total exports of the country has been ranging between 15 to 20%. Besides, goodsmade with the raw material of agriculture sector also contributes about 20% in Indianexports. In other words, agriculture and its related goods contribute about 38% in totalexports of the country.

Progress of Agriculture in Planning Era

The century ended with the countries food grains output crossing 200 million tones.Food grain production in 1999-2000 was 208.9 million tonnes, which witnesses the record

production. The estimated production of rice in 2000-2001 at 86.8 million tones is 2.7million tones lower than 1999-2000 production of 87.5 million tones. The estimated;

production of coarse cereals is 29.9 million tones as against 30.5 million tones produced lastyear, a decline by about 0.6 million tones compared to 1999-2000. The production pulseduring 2000-2001 is expected to be 12.3 million tones as against 13.4 million tones producedlast year. The estimated food grains output of 199 million tones in 2000-2001 would belower by about 10 million tones representing a decline of 4.8% over the preceding year.Overall, the growth in 1999-2000 of agriculture and allied sectors is likely to be 0.9%compared to a growth of 0.7% last year.


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The oilseeds production in 2000-2001 is expected to be 18.6 million tones comparedto 20.9 million tones produced last year.

The overall production of cotton is likely to be marginally higher at 13.2 million balesin 2000-2001 compared to 11.6 million bales last year.

Minimum Support Price of Agriculture Products

The Government announces the Minimum support Price (MSP) for various importantagriculture crops. The main objectives of announcing MSP are:

1. To prevent fall in prices in the situation of over production.

Table 1

Agriculture Production*

(Million Tones/Bales)

Crop 1950-51 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-2001

(Estimated)Rice 20.6 81.8 77.0 81.7 82.5 86.0 89.5 86.8Wheat 6.5 65.8 62.4 69.4 66.3 71.3 75.6 70.0Coarse cereals 13.5 29.9 29.0 34.1 30.4 31.2 30.5 29.9Pulses 8.4 14.1 12.3 14.2 13.0 14.9 13.1 12.3Total Foodgrains 50.8 191.5 180.4 199.4 192.3 203.5 208.9 199.0Kharif Foddgrains NA 101.1 95.1 103.4 101.6 102.8 104.9 102.7Rabi Foodgrains NA 90.4 85.3 95.5 90.7 100.7 104.0 96.3Oil Seeds 5.2 21.3 22.1 24.4 21.3 24.7 20.9 18.6Sugarcane 57.1 275.5 281.1 277.6 279.5 288.7 299.2 300.6

Cotton

(1)

3.0 11.9 12.9 14.2 10.9 12.3 11.6 13.2Jute and

Mesta (2)3.3 9.1 8.8 11.1 11.0 9.8 10.5 9.9

(1) 170 kg per bales.. (2) 180kg per bales * Economic survey 2000-2001.

Table 2

Oilseeds Production in Different Years

(Million Tonnes)

Oilseeds 1994-95 1995-96 1996-97 1997-98 1998-99 1999-

2000

2000-2001

(Estimated)

Groundnut 8.1 7.6 9.0 7.4 9.0 5.3 6.2

Rapeseed/Mustard 5.7 6.0 7.0 4.7 5.7 6.0 4.3Soyabean 3.9 5.1 5.2 6.5 7.1 6.8 5.2Other Six oilseeds 3.6 3.4 3.8 2.8 2.9 2.8 2.9Total

Nine Oilseeds

27.3 22.1 25.0 21.3 24.7 20.9 18.6


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Table 3

Support/Procurement Prices of Agriculture Goods in India

(On the basis of crop year) (Rs./ Quintal)

2. To protect the interest of farmers by ensuring them a minimum price for their crops in thesituation of a price fall in the market.

Minimum support price announced by the government is that price at whichgovernment is ready to purchase the crop from the farmers directly if crop price becomes

lower to MSP. As a result, market price of the crop never comes down from the level ofMSP. This minimum price security gives incentives to farmers to increase their production.These minimum support prices of various crops are announced on the basis ofrecommendations made by Agriculture Cost and Price Commission (ACPC) which takes in toconsideration the inputs costs and favorable returns to the farmers while recommending MSP.

Sl.

No.

Item Price Category 1998-99 1999-2000 2000-01*

1. Paddy (General) Procurement Price 440 490 5102. Fine Paddy ,, 470 520 5403. Cereals ,, 390 415 4454. Arhar (Pulse) ,, 960 1105 12005. Moong (Puls) ,, 960 1105 1200

6. Urd (Pulse) ,, 960 1105 12007. Cotton F-414 and H-777

H-4Statutory Price 1440

165015751775

16251825

8. Groundnut ,, 1040 1155 12209. Sunflower seeds ,, 1060 1155 1170

10. Soyabean (Black) ,, 705 755 775

11. Soyabean (Yellow) 795 845 86512. Safflower ,, 990 -- --13. Niger Seed ,, 850 915 1025

*Announced on 29.8.2000

New Support Prices for Rabi-Crops Marketing

Year 2001-2002

(Announced on March 24, 2001)

Rs./ Quintal

1999-2000 2000-2001 2001-2002

Wheat 550 580 610Barley 385 430 500Gram 895 1015 1100Rapeseed/

Mustard

1000 1100 1200


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Food grains Procurement and Stocks

Foodgrains procurement by the Government serves the dual purpose of providingsupport prices to the farmers and of building up public stocks of Foodgrains. Procurementoperations are carried out by the FCI and the state agencies designated by State GovernmentProcurement prices are based on support prices recommended by CACP (Commissions for

Agricultural Costs & Prices.)

Food stocks are maintained by the Central Government for 3 purposes:

(i) Meeting the prescribed minimum buffer stock norms for food security(ii) For monthly release of Foodgrains for supply through PDS (Public

Distribution System).(iii) For market intervention to augment supply so as to help moderate the open

market prices.

Buffer Stock Norms(Million Tonnes)

Food grain January April July October

Wheat 8.4 4.0 14.3 11.6Rice 8.4 11.8 10.0 6.5Total 16.8 15.8 24.3 18.1

On April 1, 2000 the buffer stocks of wheat and rice with the government were 15.2and 12.8 million tones respectively against the approved norms of 11.8 and 4.0 million tonesrespectively.

Indias Exports and Imports of Agricultural Products(Million Dollars)

Year

Exports Imports

Amount of

Ag.

Export

Amount of

Total

Countrys

Export

% of Ag.

to Total

Export

Amount of

Ag.

Import

Amount of

Total

Countrys

Import

% of Ag.

to Total

Export

1996-97 6828 33470 20.4 1428.0 39132.9 3.71997-98 6594 35006 18.8 1846.7 41484.5 4.5

1998-99 6014 33218 18.1 2918.8 42388.7 6.91999-2000 5475 37599 14.6 2624.1 47212.1 5.6


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Major Crops and their seasons

The Indian crops can be divided into two major group

1)Kharif Crop This crop is sown in the month of July and harvested in October everyyear. Kharif crop includes- Rice, Jowar, Bajra, Maize, Cotton, Sugarcane, Seasamum,

soyabean, Groundnut.

2) Ravi Crop This crop is sown in October last and harvsted in March/April every year.Ravi crop includes Wheat, Jowar, Gram, Tur, Rapeseed, Mustard.

3) Zayad Crop In some parts of the country a crop, known as Zayad crop is sown duringMarch to June every year. Zayad crops include Melon, Watermelon, Vegetables,Cucumber, etc.

Table 4

Production of Sugarcane and Sugar

Year

Sugarcane Sugar

Production

Laky TonnesArea Million

Hectares

Production

Million Tonnes

Yield Tones/

Hectare

1950-51 1.7 57.1 33 111970-71 2.6 126.4 48 301980-81 2.7 154.3 58 371990-91 3.7 241.1 65 511995-96 4.1 281.1 68 1211998-99 4.1 288.7 71 1551999-2000 4.2 299.2 71 165

2000-2001(Estimated)

-- 300.6 -- --

Table 5

Production, Consumption and Export of Tea

(Million Kgs)

Year Production Domestic

consumption

Export

1993 760.8 560 175.31994 743.8 580 150.71995 753.9 595 163.71996 780.0 618 161.71997 810.6 640 203.01998 870.4 645 210.31999 806.0 655 190.02000* 784.0 N.A. 178.0

* January November.

Major Producing States

(i) Foodgrains Uttar Pradesh, Punjab, Madhya

Pradesh and West Bengal.

(ii) Wheat - Uttar Pradesh, Punjab, Haryana,

Madhya Pradesh

(iii) Rice West Bengal, Uttar Pradesh, AndhraPradesh, Punjab

(iv) Coarse Cereals Maharashtra, Karnataka,

Rajasthan, Uttar Pradesh

(v) Pulses Madhya Pradesh, Uttar Pradesh,

Rajasthan and Maharashtra


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Commercial Crops

Commercial crops are those crops which are produced for trade purpose and earningmoney and not for self-consumption by the farmers. These commercial crops include

(i) Oilseeds Crops Groundnut, Mustard, Sesamum, Rapeseed, Linseed, Castor,Sunflower, Nigerseed and Soyabean.

(ii) Sugar Crops Sugarcane and Beeat.(iii) Fibre Crops Jute, Mesta, Sunnhemp and Cotton.(iv) Narcotic Crops Tobacco.(v) Beverage Crops Tea, Coffee.

Land Use

The total geographical area of India is about 328.7 million hectares but statisticalinformation regarding land classification is available for only about 305 million hectares.

According to the information sent to the center by the states, area under forests which was40.48 million hectares in 1950-51, became 68.02 million hectares in 1991-92. According tothe report of Environment and Forest Ministry, about 19.45% of total land of the country wascovered with forests. Land utilization pattern in India is shown in Table 6.

TRIFEDThe Government established TRIFED (Tribal Co-operative Marketing

Development Federation of India Ltd.) in August 1987. The basic aim in

TRIFED was to save tribals from exploitation by private traders and to

offer them remunerative prices for their minor forest produce and surplus

agriculture products. TRIFED started functioning since April 1988.

TRIFEDhas also been declared an important agency for collecting.

Processing, storing and developing of oil seeds products. TRIFED plays a

role of an agent of FCI for Government parchase of wheat and rice. It is

also an agent of agriculture and co-operation department for Government

purchase of cereals, pulses and oil seeds. Agriculture Ministry gives oilto TRIFED fro compensating loss incurred due to price fluctuations

NAFEDNAFED (National Agricultural Co-operative Marketing Federation ofIndia Ltd.) has been established in co-operative sector at national level formarketing of agriculture products.

Storing Facilities for

Agriculture ProductsTo promote storing facilities for agriculture products, National Co-

operative Development & Warehousing Board (1956) and Central

Warehousing Corporation (1957) were established. State WarehousingCorporations were also established. Presently FCI has its own ware-

houses.


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Table 6

Land Utilization Pattern

(In Thousand Hectare)

Sl.

No.

Year

1950-51 1993-94 1995-96

1. Total Geographical Area 284315 304863 304732

2. Area under forests 40480 68421 688303. Barren land not available for cultivation 47517 41010 NA4. Permanent Pasture and Grazing land 6675 11176 NA5. Waste land 22943 14468 NA6. Net sown area 118746 142095 NA7. Area sown more than once 13147 44325 142208. Total cropped area 131893 186420 NA

Backwardness and Low Productivity of AgricultureAgriculture sector presently provides livelihood to about 64% of the labour force and

contributes nearly 24.5% of GDP.In other words, 36% of working population engaged in non-agricultural activities

contributes 72.6 of GDP. This contradiction clearly states that per labour productivity inagriculture sector is approximately half than that in non-agriculture sector. It is a clear cutindication of backwardness of Indian agriculture.

Per hectare productivity in India for all crops is comparatively low as compared withthat of other countries.

Per hectare productivity in India for major crops has been shown in Table 7.

Table 7

Per Hectare Productivity in India

Crop/Item Per hectareproduction (in Kg.)

1998-99 1999-2000

Total FoodgrainsCorealsPulsesRice (Kharif)Rice (Rabi)

15711778634

16193073

16971919630

18862968

Rice (Total) 1747 1990

WheatMaize

Oil seeds (Kharif)Oil seeds (Rabi)

25901797

992868

27551785

809935

Oil seeds (Total) 944 856

Groundnut (Kaharif)Groundnut (Rabi)Rapeseed andmustardSugarcane(Tonne/ hectare)CottonJuteMesta

11741370

87071

2241875990

6651389

98271

22619951078


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Land Reform Programmes

Land reform programmes in India include -(i) Elimination of intermediaries(ii) Tenancy Reform

(iii) Determination of ceiling of holdings per family and to distribute surplus landamong landless people(iv) Consolidation of holdings.

The legislation for abolition of intermediaries was aimed at providing land to the tiller.

Measures of tenancy reform pertain to (i) Regulation of rent.(ii) Security of tenure.(iii) Conferment of ownership on tenants.

Laws for land ceiling were enforced in various States during fifties and sixties whichwere modified on the directives of Central Government in 1972. Legislation for ceiling onexisting holdings and unit of application has been enacted in two phases. Under both the

phases, 73.95 lakh acres of land was declared surplus (upto September 30, 1995) out of which65.58 lakh acres of land was taken over by the government and 51.68 lakh acres of land wasdistributed among 50.33 lakh landless labourers (including 36% SC and 14% ST

beneficiaries).

1875.37 lakh acres of land were brought under the process of land consolidation uptoNovember 1995. Successful effects have been made in various states like Maharashtra, UttarPradesh, Punjab and Haryana in land consolidation work.

Legislation for ceilings provides a financial assistance of Rs. 2500/- per hectare forcultivation on the low quality land taken over under ceiling laws.

Agriculture Holdings

The average size of holding in India is continuously decreasing due to rapid and highpopulation growth. The continuous division and fragmentation of holdings has increased thenumber of holdings, obviously of smaller size. According to the results of Agriculture census1990-91, the total number of Operational holdings in the country had increased from 972million in 1985-86 to 1066 million in 1990-91. Operated area, on the other hand, had risenonly marginally, i.e., by about 0.6%. Rise in number of holdings without correspondingincrease in area clearly showed pressure of population on land with average size of holdingdeclining from 1.69 hectare in 1985-86 to 1.55 hectare in 1990-91. 59% of tltal operationalholdings in s1990-91 were of size less than 1 hectare ( i.e., small holdings), 7.2% of size

between 4-10 hectares (i.e., medium holdings) and only 1.6% of size more than 10 hectares(i.e., large holdings).

In 1985-86, Rajasthan was having the highest average holding size of 4.34 hectares,followed by Punjab having an average size of 3.77 hectares. Contrary to it. Kerala was

having the lowest average holding size of 0.36 hectares (1985-86 data are the latest.)


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Agricultural holdings are termed as follows

1. Economic Holding It is that holding which ensures a minimum satisfactorystandard of living to a family. In other words, economic holding is a minimumessential area for profitable agriculture.

2. Family Holding Family holding is that holding which gives work to average sizefamily having one plough under traditional farming system. In other words, familyholding is a plough unit which is neither less nor more for an average size family tocultivate it properly.

3. Optimum Holding Maximum size of the holding which must be possessed andowned by a family is called optimum holding.

National Agricultural Insurance Scheme (NAIS) 1999-2000

National Agricultural Insurance Scheme (NAIS) has been implemented in the countrysince June 22, 1999. NAIS is sponsored by General Insurance Corporation. To meet the

demand for bringing in more crops into the purview of crop Insurance, extending its scope tocover all farmers (both loanee & non-loanee) and lowering the unit area of insurance. Thisnew scheme NAIS of Rashriya Krishi Bima Yojana has been introduced in the countryfrom Rabi 1999-2000.

This new Crop Insurance Scheme entitled NAIS has replaced the earlierComprehensive crop Insurance Scheme (CCIS).

The salient features of NAIS are as follows:

The scheme envisages coverage of all the food crops (cereals & pulses), oilseeds,

and annual horticulture/commercial crops, in respect of which past yield data isavailable for adequate number of years.

Under NAIS, no upper limit of insured amount has been laid down (which under

CCIS, the upper limit was Rs. 10,000).

New National Agricultural PolicyUnion Government has announced new National

Agricultural Policy in the Parliament on July 28, 2000.

This policy has been planned under the provisions of

world Trade Organisation so as to face the challenges of

agriculture sector. This policy gives emphases on

promoting agricultural exports after fulfilling domesticdemand.

The salient features of this policy are:

4% growth rate p.a. for the next two decades.

4% growth rate p.a. target to be achieved by 2005.

Land reforms to provide land to poor farmers.

Consolidation of holdings in all states of the nation.

Promoting private investments in agriculture.

To provide insurance umbrella for crops to farmers.

To promote bio-technology.

Promoting research for developing new varieties and


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Premium rates vary between 1.5% to 3.5% of sum insured. The rates are

(i) Oilseeds 3.5% of sum Insured(ii) Remaining Kharif Crop

2.5% pf Sum Insured(iii) Wheat 1.5% of sum Insured(iv) Remaining rabi Crop

2.0% of Sum Insured

In case of commercial & horticulture crops, actuarial rates will be charged.

Small & marginal farmers will be entitled to subsidy of 50% of the premium

charged to be shared equally between Central Government and the stategovernment. Premium subsidy will be phased out over a period of 5 years.

NAIS would operate on the basis of area Approach.

During Rabi 1999-2000, 16 States/Uts Assam, Goa, Gujarat, Himachal Pradesh,Kerala, Madhya Pradesh, Maharashtra, Orissa, Pondichery, Andhra Pradesh, Bihar,Meghalaya, U.P., Karnataka, Andman Nichobar Islands and Tamil Nadu have joined thescheme. Two more states Sikkim and West Bengal have shown their willingness to join thescheme w.e.f. 2000-2001 season.

Performance of NAIS

Rabi Kharif

1999-2000 Upto

30.9.2002Farmers covered 584239 5772063Sum Insured(Rs. Crore)

339 4872

Insurance charge(Rs. Crore)

5 140

Green Revolution in India

Agricultural research has made an improvement in traditional farming in every

country of the world. The first agriculture research center was established by agriculturescientist J. V. Bosingault at Ellses in 1934. It was a center, which initiated agricultureresearch. American society of Agronomy was established in 1908, which acceleratedagricultural development in America. Indian Society of Agronomy was established in fiftiesof 20th century.

During 1958, for the first time in India wheat production increased from 120 lakhtones to 170 lakh tones. American scientist Dr. William Gande termed it as Greenrevolution. During the middle of sixties, Indian Agricultural scientists developed a numberof new high yielding varieties of wheat by processing wheat seeds imported from Mexico.These varieties where having production potentialities of 60-65 quintals per hectare. A

similar improvement in variety of rice was also observed. As a result of introducing thesehigh yielding varieties a true Green Revolution was observed in middle of sixties which


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ensured Indias self dependence in foodgrains. The credit for it goes not only to NobelLaureate Dr. Norman Borlaug but also to Dr. M.S. Swaminathan.


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Green Revolution in India gave a rise to productivity of different crops. Newtechniques still possess potentialities of increasing production of wheat 2.5 times, rice 3times, maize 3.5 times, jowal 5 times and bajra 5.5 times.

Indian Green Revolution is, thus, associated with the use of HYVS (High Yieldingvariety seeds), chemical fertilizers and new techniques which led to a sharp rise in agriculture

production during the middle of 1960.

During 1960-61 a programme named Intensive Agriculture District programme(IADP) was introduced in 7 districts of the country. This programme was aimed to providecredit loans, seeds, fertilizers, equipments etc. to the farmers and to prepare an infrastructurefor intensive farming in other areas of the country.

During 1964-65, second similar programme named Intensive Agriculture Areaprogramme (IAAP) was introduced in other parts of the country. This programme wascentered to a few particular specific crops. Both the Programmes IADP and IAAP wererelated to intensive farming but their operation was limited to traditional varieties of crops.

Due to severe drought in 1965-66 and in 1966-67, government adopted the newagriculture policy using HYVS (High yielding variety seeds) for accelerating agricultural

production. Besides using HYVS, this new agriculture policy also included multiple cropprogrammes. The details of area covered under HYVS are shown in Table 8.

Table 8

Area Covered Under HYVS

(In Lakh Hectares)

Crop 1966-67 1994-95 1995-96 1996-97 1997-98

(Provisional)

Rice (Paddy) 6.8 310 314 334 322Wheat 5.4 232 231 237 230Jowar 1.9 71 75 83 90Bajra 0.6 54 55 61 70Maize 2.1 34 36 38 36Ragi -- 12 12 11 12

Total 18.9 713 723 764 760

Seed Sector Reforms

Based on the recommendations of Seed Policy Review Group, the draft Seed Act2000 is under preparation which would replace the existing Seeds Act 1966. The proposedlegislation has the following features:

Establishment of National Seeds Board (NSB).

Compulsory registration of any seed for purpose of sowing or planting to be granted

by NSB.

Registration to be granted for new varieties on the basis of multilocational trials over

a minimum period of 3 seasons.

The NSB will accredit ICAR Centers, State Agriculture Universities and private

organization to conduct value for cultivation and use trials for purpose of registrationfor a fixed period.

Registration of seed producers and processors.


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Import and export of seeds will be regulated under this act.

Import for sale of seeds will be permitted only of registered varieties.

Import of seed of limited quantity of unregistered variety is to be permitted for

research and trial.

Seed Crop Insurance

The scheme for Seed Crop Insurance has been introduced for identified crops viz.Paddy, Wheat, Maize, Jowar, Bajra, Gram, Red Gram. Groundnut, soyabean, sunflower andCotton in the Stares of Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh,Maharashtra, Orissa, Punjab, Rajasthan and Uttar Pradesh with a view to stengthenconfidence in the existing Seed Breeders/Growers and to provide financial security to SeedBreeders/Growers in the event of failure of Seed Crop w.e.f. Rabi 1999-2000 season. Thisscheme covers all natural risks at the following stages

Failure of seed crop either in full or in part due to natural risk.

Loss in expected raw seed yield.

Loss of seed crop after harvest. At seed certification stage.

White Revolution and Operation Flood in IndiaWhite revolution is associated with a sharp increase in milk production. During 1996 65,

Intensive Cattle Development Programme (ICDP) was introduced in the country in which apackage of improved animal husbandry was given to cattle owners for promoting whiterevolution in the country. Later on, to accelerate the pace of white revolution a new

programme named Operation Flood was introduced in the country. The Operation FloodProgramme, which is the worlds largest integrated dairy development programme, has madeconsiderable progress in achieving its outlined objectives. During 1999-2000, 78.1 milliontones of milk was produced in the country. According to the Ministry of Agriculture thedemand of milk in the country is expected to be 79 million tonnes by 2000 A.D. Buffaloes,Cows and Goats contribute 50%, 46% and 4% respectively in total milk production of thecountry. India stands first in the world in milk production. USA stands second in the world.

Dr. Varghese Kurien is the of operation flood in India. All credit for itsimplementation and successful operation goes to him only. Operation flood programme wasstarted in 1970 by National Dairy Development Board (NDDB).

Milk Production and per capita Availability

Year Milk Production(Million Tonnes) Per capitaAvailability(Grams/ Dav)

1950-51 17.0 1241960-61 20.0 1241970-71 22.0 1121980-81 31.6 1281990-91 53.9 1761996-97 9.1 2021997-98 (P) 70.8 2041998-99 (P) 74.7 211

1999-2000 (A) 78.1 214


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(P) Provisional(A) Anticipated


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The programme has since completed its III phase in April 1996. By September 1996about 73300 dairy cooperative societies were organized in 170 milk sheds involving over 9.4million farmer members. The average milk procurement during July 1997 was 107.3 lakh kg.of milk per day. The average milk marketed per day was about 112 lakh liters. The

programme has made a sound impact on rural masses and has encouraged them to take updairying as a subsidiary occupation. It has offered a reliable and regular source of income asmore than 62% of milk procurement in the Operation flood areas comes from the marginal,small and landless farmers. The milk production increased steadily and it has reached to anestimated level of about 74.7 million tonnes during 1998-99 from about 66 million tonnes in1995-96. Per capita milk availability per day was 112 gm in 1970 which went upto the levelof 214 gm in 1999-2000 due to success of operation Flood Programmes. The recommendednutritional requirement of milk as per recommendation of ICMR is 220 gm per day. Indianlevel of per capita consumption is very low as compared with that of developed nations. Thislevel is about 900 gm in USA. A disparity regarding per capita milk consumption amongvarious States is also found in India. It is 800 gm in Punjab, 640 gm in Haryana while it isonly 20 gm on an average in north-east States of the country.

Yellow Revolution

Green revolution established many landmarks in the production of foodgrains. Thenext step in the series of agriculture research and development came in operation with thename Yellow Revolution. This yellow revolution is associated with the objective ofachieving self-dependence in the production of oil seeds. Oilseeds technological mission wasintroduced for ensuring optimum utilization of production, processing and managementtechnology in oilseed crops. At present 337 districts of 23 States are associated with oilseed

production programme. Yellow revolution in India ensured remarkable achievements inproduction of oil seeds and edible oils.

Animal Hasbandry & Dairing Highlighte

Animal Husbandry & dairing play an important role in national

economy and in Socio-economic development of the country.

Live stock sector provides regular employment to 9.8 million in

principal status and 8.6 million in subsidiary status which

together constitute 5% of the total work force.

India owns one of the largest livestock populations in the world.

It accounts for 16% of the cattle population and 57% of buffalo

population.

India has become the largest producer of milk in the world. Themilk production in 1999-2000 is expected to be around 78 million

tonnes.

Livestock contributed 74.7 million tonnes of milk, 30.2 billion

eggs, 45.5 million kgs. Of wool, 4.43 million tonnes of meat and

5.66 million tonnes of fish during 1999-2000.

Over the years, the contribution of livestock sector to agriculture

GDP has increased from 17 25%.

Export earnings from livestock sector and related products

increased to Rs. 1925 crore in 1998-99 as compared to Rs. 792

crore of previous year showing an annual growth of about 12%


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Use of Fertilizers

According to agriculture scientists, different types of fertilizers (i.e., Nitrogen,Phosphate and Potash-NPK) should be used in a balanced proportion to maintain the

productivity of soil. For India, the standard ration for the use of various fertilizers has been

assumed to be 4 : 2 : 1. But during 1999-2000, this ratio was 6.9 : 2.9 : 1. For 2000-2001, theestimated ratio is 6.4 : 2.7 : 1. It shows that consumption is baised in favour of nitrogenousfertilizer. At present only urea which is the main nitrogenous fertilizer, constituting about60% of the total fertilizer consumption in the country, is under statutory price control.

Chemical Fertilizer

Consumption Ratio : NPK

Year N P K

1960-61 7.2 1.8 11970-71 6.5 2.0 11980-81 5.9 1.9 1

1990-91 6.0 2.4 11995-96 8.5 2.5 11996-97 10.0 2.9 11997-98 7.9 2.8 11998-99 8.5 3.1 11999-2000 6.9 2.9 12000-2001* 6.4 2.7 1

* Estimated

To maintain a balance in fertilizers use, government enhanced the prices of urea by10% on Feb. 21, 1997 and also enhanced the subsidy on Phosphate and Polash fertilizers,Since April 1, 1990, subsidy of Rs. 750 per tonne on DAP (Diamonium Phosphate) Rs. 100

per tonne on SSP (Single Super Phosphete) and Rs. 500 per tonne on MNOP (Muriate ofPotash) has come into force in 1995-96. The total production of Phosphate and Nitrogenfertilizers was 31.41 lakh tonnes and 104.8 lakh tonnes respectively in 1998-99.

Domestic production of nearly 13 million tonnes of nitrogenous and phosphaticfertilizer (N + P) falls short of consumption by over 20%. The short fall in domestic

production of N and P is met from which involves a subsidy since domestic selling prices arekept low compared to the landed cost of imported fertilizers. In case of Potash entirerequirement is imported.

Table 9Consumption of Chemical Fertilizers

(1000 MT Nutrients)

Fertilizer 1997-1998 1998-1999 1999-2000 2000-2001*

Nitrogenous Fertilizer 10901 11354 11593 12336Phosphatic Fertilizer 3914 4112 4799 5114Potassic Fertilizer 1373 1332 1678 1918

All Fertilizer (NPK)

Percentage Increase

16188

13.14

16798

3.77

18070

*7.57

19368

7.19

* Estimated


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Table 10

Production, Import and Subsidies of Chemical Fertilizers

Year

Production ImportEconomic

Subsidy

(Crore Rs.)

(N + P)

Thousand Tonnes

(N + P + K)

ThousandTonnes

1960-61 150 419 --1970-71 1059 629 --1980-81 3005 2759 5051990-91 9045 2758 43891996-97 11155 1975 75781997-98 13062 3174 99181998-99 13621 3145 113871999-2000 14289 4075 132442000-2001 (BE) 15250 2203 12651

India ranks third in the world in fertilizer production but Indian production fulfils only80% of nitrogen and 70% of phosphate consumption requirements of the country. For potashfertilizer India is fully dependent on imports.

To encourage balanced fertilizer use, The Central Government Continues to providesubsidy on decontrolled fertilizers such as Diammonium Phosphate (DAP), Muriate of Potash(MOP) SSP and Complexes. The current selling prices of urea and P & K fertilizers as fixed

by the Government are as under Fertilizer Selling Price

(Rs. Per tonne)

Urea 4600DAP 8900MOP 4255Complexes 6620-8520SSP Varies from state

to statThe farm-gate price of urea, which is at present fixed at Rs. 4600 per tonne excluding

local levies, is amongst the lowest in the region and is heavily subsidized by the governmenton every tonne of urea sold to the farmers. Subsidy on Nitrogenous fertilizer alone (mostlyurea) in 2000-01 (BE) is estimated at Rs. 8558 crore.

Paradeep Phosphate Limited:Countrys Single Enterprise for Producing Phosphate

Fertilizer

As joint enterprise with Nauroo Paradeep Phosphate Limited

worth Rs. 120 crore share capital investment was established in

1981 on the eastern coast at Paradeep of Orissa. The equity

share of the Government of India was 51% and that of Nauroo

Government 49%. Due to continuous loss and low capacity in

this production Nauroo Government dissociated itself from this

joint enterprise in May 1993 and all its shares were purchased by

the Government of India. It should also be made known that PPL

is the onl hos hate ertilizer roducin enter rise in India.


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From 1.7.2000 to 30.9.2000 tile level of concessions (subsidy) was fixed at Rs. 3700per tonne for indigenous DAP, Rs. 1350 per tonne for imported DAP and Rs. 3050 per tonnefor MOP. The rate of concession on SSP (Single super Phosphate) during 2000-01 applicablefrom 1.4.2000 is Rs. 700 per tonne. Under q1oncession scheme, Maximum Retain Price(MRP) of DAP has been fixed as Rs. 8900 per tonne and for MOP Rs. 4255 per tonne w.e.f.29th February, 2000.

Irrigation and Flood Control

The planning Commission has introduced a new classification of irrigation schemes:1. Major Irrigation Schemes Those with culturable command areas (CCA) more than

10,000 hectares.2. Medium Irrigation Schemes - Those with culturable command areas (CCA) between

2,000 and 10,000 hectares.3. Minor Irrigation Schemes - Those with culturable command areas (CCA) upto

2,000 hectares.

Strengthening of irrigation infrastructure is one of the main objectives in irrigationsupply management. In the beginning of 8th plan, there were 162 major, 240 medium and 74Extension Renovation and Modernisation (ERM) projects under operation which remaincontinued during 9th plan also. An allocation of Rs. 79317 crore has been made for theseirrigation projects in 9th plan.

With a view to ensuring early completion of projects for providing irrigation benefitsto the farmers, Rural Infrastructure Development Fund (RIDF) has been in operationsince 1995-96. The Government launched Accelerated Irrigation Benefits Programme(AIBP) in 1996-97. Amounts of Rs. 500 crore, Rs. 952.1 crore and Rs. 1119.18 crore werereleased under AIBP as Central Loan Assistance (CLA) to the states during 1996-97, 1997-

98 and 1998-99. With effect from 1999-2000, CLA under AIBP is also being provided forMinor irrigation projects of NE region, hill states and drought prone districts of Orissa.

New System of Irrigation Drip Irrigation

Under Sprinkler/Drip Irrigation System water is

sprinkled evenly on total agriculture ground through

a pipe network cropped area. Empirical studies show

that this system of drip irrigation saves 30% to 40%

water as compared to irrigation with traditionalmethod, i.e., surface irrigation. This new system of

irrigation also ensures 20-25% more productivity per

hectare.

The Central Government has taken decision in

Union Budget 1996-97 to bear 70% cost of

establishing Drip Irrigation System as subsidy. The

maximum ceiling of this subsidy has been raised from

Rs. 15,000 to Rs. 25,000. A special provision of

subsidy up to 7\90% of total cost has been made for

marginal farmers, women, SC/ST people


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The economic aid on sprinkler and drip irrigation equipments has been enhanced from50% of total system cost to 70%. The maximum ceiling of this economic aid has beenincreased from Rs. 15,000 to Rs. 25,000. The limit of economic aid for these equipments tomarginal and small farmers, women, SC and ST has been relaxed upto 90% of the totalsystem cost. The progress of various irrigation projects has been shown in Table 11.

Table 11

Development of Irrigation Potentiality and Its Use.

(Million Hectare)

Item At the End

of 7th Plan

(1985-90)

At the End of 8th

Plan (1992-97)

Ninth Plan

Target

(1997-2002)

At the End of

(1999-2000)

1. Major and MediumIrrigation Project(a) Potential 29.9 32.96 9.81 35.35(b) Utilization 25.5 28.44 8.71 30.47

2. Small Irrigation Projects(a) Potential 46.6 56.60 7.24 59.38(b) Utilization 43.1 52.32 4.93 54.23

3. Total Irrigation(a) Potential 76.5 89.56 17.05 94.73(b) Utilization 68.6 80.76 13.64 84.70

Command area Development Programme (CADP)

CADP, Center Government sponsored programme was initiated in 1974-75. The aimof this programme was to ensure better utilization of irrigation capacities of selected largeand medium irrigation projects of the country. The basic objective of CADP is to maximize

productivity in the irrigation command areas through an integrated approach covering farmdevelopment works including construction of field channels and field drains, land levelingwherever necessary and the introduction of rotational supply of water to ensure equitable andassured distribution to individual farm holdings.

Beginning with 60 major and medium irrigation projects in 1974, the programmeincluded 217 irrigation projects at the end of 1997-98 with culturable Command Area (CCA)

of 21.78 million hectares spread over 23 states and two Union Territories.

Agricultural Credit

Three types of loans are provided to Indian farmers to meet their financialrequirements

(i) Short term loans(ii) Medium term loans(iii) Lon term loans


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Short term loans are provided for a period of less than 15 months to meet outexpenses of routine farming and domestic consumptions. This type of loans is demanded byfarmers for purchasing seeds, fertilizers and for meeting out family requirements.


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Medium term loans are provided for a period of 15 months to 5 years to purchaseagricultural equipments, animals and for land improvements.

Long term loans are provided for a period of more than 5 years. This type of loan istaken by the farmers to purchase land and expensive agricultural equipments and forrepayment of old loans.

Indian farmer acquire above types of loans from two sources

(i) Non-institutional Sources like money lenders, landlords, big business men etc.

(ii) Institutional Sources like commercial banks, Co-operative Banks andGovernments sources.

Policy on agriculture credit aims at progressive institutionalization of credit agenciesfor providing credit to farmers for raising agricultural production and productivity.

Agricultural credit is disbursed through a multi-agency network consisting of Co-operatives,Commercial Banks and Regional Rural Banks (RRBs).

The flow of institutional credit for agriculture and allied activities has increased fromRs. 18744 crore in 1994-95 to Rs. 36897 crore in 1998-99. The total credit flow from allagencies is estimated to be Rs. 44612 crore in 1999-2000.

Apart from substantial expansion in the flow of credit by commercial banks andRegional Rural Banks (RRBs), the co-operative Credit institutions continue to be importantinstitutional agencies for providing credit support and services for agricultural and ruraldevelopment. Co-operatives account for 44% share in the credit flow for agriculture.

Table 12

Agricultural Advances Recovery

(Per cent)

Institution 1995-96 1996-97 1997-98 1998-99 1999-2000*

Commercial Banks 62.0 63.3 66.1 66.8 N.A.Distt. Central Co-

operative Banks

69.0 70.0 70.0 70.0 69.24

Regional Rural Banks 55.0 57.0 61.0 64.0 N.A.* Provisional N. A. Not Available


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Table 13

Flow of Institutional Credit to Agriculture

Rs. Crore

Institution 1998-99 1999-2000* 2000-2001**

(A) Cooperative Banks 15957 18429 22706Short Term 12571 14648 17598Medium/Long Term 3386 3781 5108

(B) RRB 2460 3329 4061Short Term 1710 2517 2412Medium/Long Term 750 812 1649

(C) Commercial Banks 18443 22854 24693Short Term 9622 11697 10973Medium/Long Term 8821 11157 13720

Total 36860 44612 51460

* Estimated ** Projection.

Kisan Credit Card SchemeKisan Credit Card Scheme was introduced in 1998-1999 to facilitate access to credit from

Commercial Banks and Regional Rural Banks. The salient features of the Scheme are as given below:

(a) Farmers eligible for production credit of Rs. 5000 or more are eligible for issue for Kisan

Credit Card.

(b) Eligible farmers to be provided with a Kisan Card and pass book or card-cum-pass book.

(c) Provision of revolving cash credit facility involving any number of drawals and repayments

within the limit.

(d) Entire production credit needs for full year plus ancillary activities related to crop production

considerea while fixing limit. In due course, all activities and non-farm credit needs may also

be covered.(e) Limit to be fixed on the basis of operational land holding, cropping pattern and scale of

finance.

(f) Sub-limits may be fixed at discretion of banks.

(g) Card valid for 3 years subject to annual review.

(h) Each drawal to be repaid within 12 months.

(i) Conversion/reschedulement of loans also permissible in case of damage to crops due to natural

calamities.

(j) As incentive for good performance, credit limits could be enhanced to take care of increase in

costs, change in cropping pattern etc.

(k) Security, margin, rate of interest as per RBI norms.

(l) Operations insy be through issuing branch or at the discretion of bank, through otherdesignated branches.

(m)Withdrawals through slips/ cheques accompanied by card and passbook.

Number of Kisan Credit Cards Issued and Amount Sanctioned

AgencyCumulative Progress upto 31 December, 2000*

Care Issued (in Lakh) Amount Sanctioned (Rs. Crore)

Cooperative BankRRBsCommercial Bank

71.025.92

31.48

1283113817010

Total 108.42 21222

* Provisional


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Important Facts Related to Indian Economy

1. According to C.S.O.s Estimates, Growth Rate for 1999 2000 (growth rate of Real

Gross domestic Products) was 6.4%. the anticipated estimate of GDP growth rate for2000-2001 is 6.0%.

2. The reduction in overall growth rate of GDP to 6% in 2000-2001 is mainly due to adecline in the growth rate of Service Sector from 9.6% in 1999-2000 to 8.3% in thecurrent year 2000-2001.

3. During the Eighth Five Year Plan period average Growth Rate of 6.5% p.a. wasachieved against the target of 5.6% p.a.

4. During Ninth Plan (1997-2002) the revised growth rate of 6.5% p.a. has beentargeted.

5. During 1999-2000, GNP at factor cost at 1993-94 prices was Rs. 1140389 crores.

6. During 1999-2000 per capita income in India was Rs. 16047 (at current prices).

7. According to World Development Report 1999/2000. per capita income in India was$ 430 during 1998.

8. According to estimates of C.S.O. during 1999-2000 Net National Product at Factor

Cost in India was Rs. 1011224 crore (at 1993-94 prices.)

9. According to CSO laterst estimates Net National Product on Current Prices during1999-2000 was Rs. 1590301crore.

10. For 2000-2001, NNP at factor cost has been estimated

On constant Prices

-- Rs. 1072906 crore

On Current Prices

-- Rs. 1776675 crore

11. Real per capita income increased by 4.9% at 1980-81 prices during 8th Five year Plan.

12. GDP at factor cost on 1993-94 prices for 2000-2001 has been estimated Rs. 1221174crore which is 6.0% higher than that of year 1999-2000.

13. The growth rate in GDP during 2000-2001 has been estimated 6.0%.

14. Per capita income on 1993-94 prices for 2000-2001 has been estimated at 10654rupees which is 4.4% more than that of 1999-2000.

15. On the basis of new series Gross Domestic Saving was 22.3% of GDP and Grossdomestic Capital formation was 23.3% of GDP.

National Income


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1. The growth rate of agriculture sector which was 0.7% in 1999-2000 marginallyimproved to 0.9% in 2000-2001.

2. Production of oil seeds in various years are as follows 1995.96 22.1 M. tonnes1996.9724.4 M. tonnes1997.9821.3 M. tonnes1998.99 25.2 M. tonnes1999.2000 21.2 M. tonnes

Foodgrain Production

(In Million Tonnes)1995-96 180.41996-97 199.41997-98 192.31998-99 203.51999-2000 208.92000-2001 199.0

3. Rice is main food crop of India.

4. Green Revolution in the country was actually started in the mid sixties.

5. Due to Green Revolution, the share of wheat in the total production was increased.The share of rice remained constant while the shares of cereals and pulses werereduced.

6. Coarse cereals include jawar, maize, bajra, ragi and small millets.

7. During 2000-2001, the production of cereals was 29.9 million tonnes.

8. Nine oil seeds which are produced in India are : groundnuts, mustard, toria, soyabean,

sunflower, sesamum (til), castorseed, nigerseed, linseed and safflower (kardi).

9. During 2000-2001, groundnut accounted for 33%, rapeseed and mustard 23.1% andsoyabean 28% of total oilseeds production in the country.

10. During 1999-2000, the production of groundnuts was 53 lakh tonnes while during1999-2000, its production has gone to 62 lakh tonnes.

11. Madhya Pradesh has the highest production of soyabean in India.

12. During 1999-2000, the total wheat production was 756 lakh tonnes.

13. During 1999-2000, the production of rice was 895 lakh tonnes. During 2000-2001,the production has been 868 lakh tonnes.

A ricultur


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14. India holds first position in the world in the production of sugarcane and sugar.

15. During 1999-2000, the production of sugarcane was 29.92 crore tonnes. During2000-2001, its production has been 30.06 crore tonnes.

16. During 1999-2000, the production of cotton was 116 lakh bales of 170 kg. each.During 2000-2001, its production has been 132 lakh bajes.

17. During 1999-2000, production of jute and mesta was 105 lakh bales of 180 kg. each.(which reduced to 99 lakh bales of 180 kg. )

18. U.P. is the highest wheat producing state in India. Punjab and Haryana hold secondand third positions respectively.

19. The highest rice producing state is W. Bengal. U.P. and Andhra Pradesh hold the

second and third places respectively.

20. The highest cereals producing area is Maharashtra, Karnataka, and U.P. hold thesecond and third position respectively.

21. The highest pulse producing state is M.P., U.P. and Maharashtra hold the second andthird places respectively.

22. India holds first place in the world for production of tea but exports just about 24% ofits annual output and hence ranks fourth in export volume.

23. During 1999, the production of tea was 80.6 crore kg.

24. During 1999,190 million kg. of tea was exported.

25. During 1999-2000 coffees production was 2.92 lakh tonnes. For 2000-2001, itsproduction was estimated at about 2.95 lakh tonnes.

26. India ranks sixth in world coffee production with an annual production of about 3lakh tonnes.

27. Karnataka which is the largest producer of coffee in the country accounts for 56.5%

of total coffee production in India.

28. Domestic demand for coffee in the country is about 50,000 tonnes p.a. 80% of thetotal coffee production is exported from India.

29. The productivity of rubber in the country during 2000-2001 (estimated) is 1600 kg perhectare, which is the highest in the world. At present countrys 97% of demand fornatural rubber is met by indigenous production.

30. During 2000-2001, rubber production was 6.4 lakh tonnes. Kerala is the main rubberproducing state which produces 90% of rubber in the country and accounts for over,85% of the area under cultivation.


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31. India is the largest milk producing country in the world. During 1999-2000 milkproduction was 78.1 million tonnes in the country.

32. Milk production and per capita availability of milk in 1950-51 was 17 million tonnesand 124 gm/day which became 78.1 million tonnes and 214 gm/day respectively in1999-2000.

33. At the end of 1999-2000. Cumulative irrigation capacity created in the country was947.3 lakh hectares in which 353.5 lakh hectares was under major and mediumirrigation projects and the remaining 593.8 lakh hectares was under small irrigation

projects.

34. Irrigation projects covering upto 2000 hectares cumulative command area areclassified under small irrigation projects, from 2000 to 10,000 hectares command areais classified under medium irrigation project and more than 10,000 hectares command

area is classified under major irrigation projects.

35. During 1997-98, 76.0 million hectares of agricultural land was brought under HighYielding Varieties (H.Y.V.).

36. In 2000-2001, the production of N + P fertilizers was 15.25 million tonnes.

37. Since August 1992, all controls on price and movement of phosphate and potash havebeen removed.

38. According to available data, Indiaranks first both in production and consumption of

sugar in the world.

39. India is the third highest tobacco producing country in the world. Annual productionof tobacco in India is about 5.5 to 6.00 lakh tonnes.

40. China, the largest producing and consuming country of tobacco in the world, hasprohibited smoking at the public places since May 1997.

41. In April 1995, Comprehensive Crop Insurance Scheme was launched. Premium ofInsurance is shared by the Center and State Government in ratio of 2 : 1 under thisscheme.


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1. During Eighth five year Plan the annual growth rate of industrial production was8.0%. For 9th plan it is tar eted to be 8.5% p.a.

2. Condition of industrial which was almost stagnant during 1991-92, improved int ehsubsequent years.

3. The base year for Index of Industrial Production (IIP) has been changed to 1993-94.In new industrial production index the weight of manufacturing sector is 79.36, whilethe weight of mines and electricity are 10.47 and 10.17 respectively.

4. At the end of the Eighth Plan Central Government has created Jute ModernizationFund of Rs. 150 crore and Jute Development Fund of Rs. 100 crore to achieve thetarget of exporting Jute worth Rs. 1000 crore.

5. A separate Industrial Policy for small units was declared on 6 th August, 1991 for thefirst time.

6. Under the latest policy those units are called small industrial units which haveinvestment of rupees one crore in plants and machinery. Subsidiary and exportoriented units have also the same investment limit.

7. the small units having investment upto Rs. 25 lakh in plants and machinery are calledtiny units.

8. Under the provisions of new Industrial Policy, export oriented industrial units will getautomatic sanction of Foreign Equity Investment upto 51%.

9. For making foreign Capital Investment more easier, Foreign Exchange RegulationAct 1973-FERA WAS LIBERALIZED ON 8TH January, 1993 by an ordinanceissued by President of India. Now in December 1999 FERA has been replaced byFEMA (Foreign Exchange Management Act.)

10. According to the Survey of Public Enterprise 1999-2000. ONGC had the highest netprofit (Rs. 3629.4 crore) among all public sector units.

Industr

general agriculture part i

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