Trends in Indian Agriculture

Transcription

1 Trends in Indian Agriculture Agriculture is the main stay of the Indian economy as its performance is dependent upon the growth of Agriculture sector. It contributes nearly 22% of India s Gross Domestic Product (GDP) & 13% of total exports. It provides employment to 57% of the country s work force and livelihood security to more than 650 million people. The average annual growth rate in agriculture, including allied sectors, declined from 4.7 per cent during the Eighth Plan ( ) to 2.1 per cent during the Ninth Plan ( ). It further went down to 1.2% during the period , i.e. the first three years of the 10 th Five Year Plan Contrary to the targeted average annual growth rate of 4 per cent, the growth rate in , the first year of the Tenth Plan ( ), was negative (-7.0%). This of course reflected the impact of the severe drought of Favourable monsoon facilitated an impressive growth rate of 9.6 per cent in However, deficient rainfall from southwest monsoon is estimated to have caused a significant decline in kharif foodgrains production in the last year. The estimated Kharif foodgrains production is likely to undergo upward revision later and the Rabi Crop has been good. Agricultural growth rate in the year is estimated at 1.1 per cent especially in view of the high base of the previous year. The following table shows the recent trends in agricultural growth. ANNUAL AVERAGE GROWTH RATES (%) Five Year Plan Agricultural Growth Rate Overall Growth Rate (Including Allied Sectors) SEVENTH PLAN ( ) ANNUAL PLAN ( ) EIGHTH PLAN ( ) NINGH PLAN ( ) TENTH PLAN ( ) Source: CSO and DES Plan outlay of Rs crore was approved for the Department of Agriculture & Cooperation (DAC) for the Tenth Five Year Plan as against an outlay of Rs crore in the Ninth Five Year Plan. This implied an increase of percent in the plan allocation. During the first three years of the Tenth Plan, Department utilized 99.39% of its Revised outlay of Rs crore in , 97% of Rs crore in and 90.18% of Rs crore in In the current Annual Plan , an outlay of Rs crore has been approved. The thrust areas, inter-alia, include increase in the production and productivity of various crops including oilseeds and pulses; diversification to the high value crops; strengthening of agriculture marketing infrastructure; promotion of agriculture extension; promotion of water and soil conservation through watershed approach under natural resources management; and extended insurance scheme for risk management. In addition, an outlay of Rs crore has been provided for State Plan Scheme Watershed Development in Shifting Cultivations Area in North Eastern States.

2 FOODGRAINS PRODUCTION Total foodgrains production in the country crossed the 200 million mark for the first time in when it rose to million tonnes. It rose further to million tonnes in Total foodgrains production declined steeply to million tonnes in , before it reached a high level of million tonnes in However, the severe drought that affected several parts of the country in 2002 pulled down the total foodgrains production in the country to million tonnes in Favourable rainfall from the south-west monsoon boosted total foodgrains production to a record level of million tonnes in However, in deficient rainfall caused a significant decline in foodgrains production to million tonnes (fourth advance estimate), which include kharif foodgrains production of million tonnes and rabi foodgrains production of million tonnes. However, in the production of kharif foodgrains is estimated at million tonnes (First Advance Estimates). The fluctuations in foodgrains production have caused corresponding fluctuations in per capita availability as shown in the table below: PRODUCTION & AVAILABILITY OF FOODGRAINS YEAR Production (Million Tonnes) Gross Net * * Provisional Per capita net availability (grams per day) Note: - Net production is gross production minus quantity allowed for seed, feed and wastage at 12.5 per cent of gross production. Per capita availability is obtained after adjusting net production for change in stocks and net exports/imports. OILSEEDS AND OTHER COMMERCIAL CROPS Oilseeds production in the country has fluctuated around 20 million tonnes in recent years except in when it declined sharply to million tonnes due to the drought in In oilseed production reached a record level of million tonnes, which further rose to million tonnes in In the production of Oilseeds reached an all time record level of million tonnes which included a

3 record production of soyabean at 7.51 million tonnes. The total Kharif oilseeds production in is estimated at million tonnes which is marginally lower than the production estimated at million tonnes in the previous year. As regards other commercial crops, the production of cotton was fluctuating around 10.0 million bales of 170 kgs. each.however,there was significant increase in Cotton production to million bales of 170 kgs. each in which increased further to a record level of million bales of 170 kgs. each in In the First Advance Estimates put the production of cotton in at million bales of 170 kgs. each. As regards Sugarcane, the production has been around 300 million tonnes. However, it declined significantly to million tonnes in and further to million tonnes in (Fourth Advance Estimates). In the production of Sugarcane is likely to be around million tonnes. In the case of Jute, the production has been around 10.0 million tonnes. However, in the production of Jute declined to 9.64 million bales of 180 kgs. each. There is expected to be marginal decline in Jute production in , and the production is likely to be 9.22 million bales of 180 kgs. each. The annexed Statement also gives first advance estimates of kharif oilseeds and other commercial crops for alongwith the details of production of commercial crops from to LATEST WEATHER AND CROP SITUATION The rainfall from the southwest monsoon in 2005 was 1 % below the long period average. Among the four homogeneous regions maximum deficiency in rainfall from South West monsoon was in North-east India (20%) followed by North west India ( 10%). The Central India and South peninsula received rainfall which exceeded the long period averages by 10% and 12% respectively. Out of the 525 meteorological districts, 105 districts (21%) received excess rainfall whereas 256 districts (51%) received normal rainfall. The rainfall was deficient in 131 districts ( 26%) while it was scanty in 11 districts ( 2% ). The cumulative rainfall from 1 st June to 30 th September 2005 was excess to normal in 32 meteorological sub-divisions and deficient/ scanty in 4 out of the 36 meteorological sub-divisions in the country. For the country as a whole, actual rainfall was mm which was 1% less than the normal rainfall of mm. Crop Scenario in The good rainfall received during the south-west monsoon has resulted in reasonably good scenario of production of foodgrains and commercial crops during kharif season of The first advance estimates have placed the overall Kharif foodgrains production for at million tonnes compared to million tonnes in the previous year. The rice production at million tonnes is above the production level of million tonnes last year. The production of Kharif coarse cereals at million tonnes for is marginally below the production of million tonnes in the previous year. As regards kharif pulses, the estimate for at 4.98 million tonnes is higher than that in , which was 4.95 million tonnes. The annexed Statement gives first advance estimates of kharif foodgrains for alongwith the details of foodgrains production from to

4 The total Kharif oilseeds production in is marginally lower at million tonnes than that at million tonnes in the previous year. The production of groundnut at 5.94 million tonnes as per first advance estimate for is higher than that in , which was 5.33 million tonnes. The production of soyabean in is estimated at 6.58 million tonnes, which fall short of the soyabean production of 7.51 million tonnes in the previous year. As regards cotton, the production is estimated at million bales of 170 Kg. each compared with million bales of 170 Kg. each in the previous year. The production of jute is estimated at 9.22 million bales of 180 Kgs. each in compared with 9.64 million bales of 180 Kg. each in the previous year. The production of sugarcane is estimated at million tonnes in compared with million tonnes in Progress in Sowing of Rabi Crops As per the reports discussed in the meeting of the Crop Weather Watch Group held on , The total coverage under rabi coarse cereals during rabi has been reported to be lakh hectare against lakh hectare during corresponding period last year. The coverage under jowar is lakh hectare against lakh hectare; bajra 0.03 lakh hectare against 0.03 lakh hectare; barley 0.19 lakh hectare against 0.19 lakh hectare; and maize 1.12 lakh hectare against 1.64 lakh hectare during corresponding period last year. Reports of coverage under wheat are awaited from the states. TRENDS IN SOWN AREA AND IRRIGATED AREA ( ) The net sown area in India is million hectares, which accounts for 43.2 per cent of the total geographical area of million hectares. Area sown more than once is million hectares, which works out to 34.1 per cent of the net sown area. This means that the cropping intensity, (percentage of gross cropped area to net sown area), in the country is per cent. The net irrigated area is million hectares, which works out to only 37.4 per cent of the net sown area. The gross irrigated area is million hectares, implying irrigation intensity at per cent. 2 CROP PRODUCTION ORIENTED SCHEMES: Crops Division is implementing following shemes: (i) (ii) (iii) (iv) (v) (vi) Integrated Cereals Development Programme in Rice Based Cropping Systems Areas (ICDP-Rice); Integrated Cereals Development Programme in Wheat Based Cropping Systems Areas (ICDP-Wheat); Integrated Cereals Development Programme in Coarse Cereals Based Cropping Systems Areas (ICDP-Coarse Cereals); Sustainable Development of Sugarcane Based Cropping Systems (SUBACS); Special Jute Development Programme; Intensive Cotton Development Programme (Mini Mission-II of Technology Mission on Cotton);

5 (vii) Central Sector Scheme on On Farm Water Management for Increasing Crop Production in Eastern India. From October, 2000, these schemes except Mini Mission II on Technology Mission on Cotton and On Farm Water Management for Increasing Production in Eastern India have been subsumed under Macro Management Programme with a view to provide flexibility to States according to regionally differentiated needs. The details regarding Mini Mission II of Technology Mission on Cotton and On Farm Water Management for Increasing Production in Eastern India are given below: MINI MISSION II OF TECHNOLOGY MISSION ON COTTON : In view of low productivity and poor quality of cotton, the Government of India launched Technology Mission on Cotton in February, 2000 integrating research, production, market infrastructure development and modernization of ginning and pressing factories through various Mini Missions. Ministry of Agriculture and Ministry of Textiles are involved in the implementation of Mini Missions under Technology Mission on Cotton for enhancing production, productivity and improving cotton quality. To supplement the efforts of the State Government in increasing production and productivity of cotton, the Department of Agriculture & Cooperation is implementing Mini Mission II of Technology Mission on Cotton (TMC). The programme is being implemented in 13 States viz. Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and Tripura. The scheme provides assistance for extension and development activities viz. technology demonstrations, training to farmers and extension workers, supply of critical inputs like seeds, sprayers, pheromone traps, bio agents, sprinklers / drip irrigation equipments, etc. CENTRAL SECTOR SCHEME ON FARM WATER MANAGEMENT FOR INCREASING CROP PRODUCTION IN EASTERN INDIA The Central Sector Scheme On Farm Water Management for Increasing Crop Production in Eastern India was started in and is being implemented by NABARD through Banks in cooperation with State Governments. Objective To increase the production and productivity of different crops in the Eastern India by exploiting the abundant ground and surface water resources. Area of Operation The Scheme is being implemented in 10 Eastern/ N.E. States i.e. Bihar, Jharkhand, Orissa, Chhatisgarh, Eastern UP (35 districts), West Bengal (9 districts), Assam, Arunanchal Pradesh, Manipur and Mizoram. Component of the Scheme Construction of shallow Tube Wells (STW) with pumping sets; Low Lift Irrigation Points (LIP);

6 Electric/diesel water pump sets; Dug wells in plateau Regions. Pattern of Assistance The funding pattern of the scheme is 20:30:50 i.e. 20% as beneficiary s contribution, 30% as grant in aid from the Government of India and the remaining amount of 50% as the loan to the beneficiaries by banks. It is a credit linked back-ended subsidy scheme. Monitoring of the scheme: At the central level the monitoring of the scheme is done through a Central Level Coordination Committee (CLCC) under the chairmanship of Secretary (A&C) and at State level, the monitoring is being done through a State Level Monitoring Committee (SLMC) under the Chairmanship of Agriculture Production Commissioner / Principal Secretary (Agriculture). In view of slow progress of the scheme, Government of India has decided to discontinue the scheme from Technology Mission On Oilseeds and Pulses: Oilseeds During Xth Plan Government of India is implementing a Centrally Sponsored "Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize "(ISOPOM) in 14 major oilseeds growing States viz. Andhra Pradesh, Bihar, Chhatisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal with a view to increase the production and productivity of oilseeds in the country. Under the Scheme, assistance is provided for purchase of breeder seed, production of foundation seed, production and distribution of certified seed, distribution of seed minikits, distribution of plant protection chemicals, plant protection equipments, weedicides, supply of rhizobium culture/phosphate solubilising bacteria, distribution of gypsum/pyrite/liming/dolomite, distribution of sprinkler sets and water carrying pipes, publicity, etc. to encourage farmers to grow oilseeds. In order to disseminate information on improved production technologies amongst the farmers, block demonstrations and Integrated Pest Management (IPM) demonstrations are organized through State Department of Agriculture and Front Line Demonstrations through ICAR. An amount of Rs crores has been allocated for the development of Oilseeds, Pulses, Oil Palm and Maize Programmes under ISOPOM during and it is targetted to produce lakh tonnes of oilseeds during the current year. Pulses India is the highest producer and consumer of pulses in the world. However, our indigenous production of pulses is not sufficient to meet the domestic requirement. The gap between demand and supply is being met through imports of pulses for other countries. Looking into the seriousness of the problem and increasing import, the Govt. of India decided to tackle this problem in a Mission Mode Approach. Accordingly, Pulses were brought under Technology Mission on Oilseeds during An Integrated approach has been adopted under the Mission right from research and development in production technology to crop production, post harvest and processing, price support and

7 marketing. The objectives set for the Technology Mission were (i) to increase the production of pulses, (ii) to reduce the import of pulses; and (iii) to achieve self sufficiency in pulses. Consequent to the setting up of Technology Mission on Pulses breakthrough in increasing pulses production has been achieved through an Integrated approach by introducing new crop technologies, supply of inputs and extension services support for marketing and post harvest technologies and excellent coordination/cooperation between various organizations/ departments and Ministries. During Xth plan, Government of India is implementing a Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) in 14 major pulses growing states viz. Andhra Pradesh, Bihar, Chhatisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. Under the scheme, assistance is provided for purchase of breeder seed, production of foundation seed, production and distribution of certified seed, distribution of seed minikits, distribution of plant protection equipments, weedicides, supply of rhizobium culture/phosphate solubilising bacteria, distribution of gypsum/ pyrite/ liming/ dolomite, distribution of sprinkler sets and water carrying pipes, publicity, etc. to encourage farmers to grow pulses on a large scale. In order to disseminate information on improved production technologies amongst the farmers, block demonstrations and Integrated Pest Management (IPM) demonstrations are organised through State Department of Agriculture and Frontline Demonstrations through KVKS. An amount of Rs. 240 crores under ISOPOM has been allocated for the programmes for development of oilseeds, pulses, oilpalm and maize during and it is targeted to produce 157 lakh tonnes of pulses during the current year. 4. Horticulture (i) National Horticulture Mission : A Centrally Sponsored Scheme of National Horticulture Mission (NHM) has been launched in the country, during the current financial year with a total outlay of Rs crores during the X Plan including Rs crore for for the development of horticulture duly ensuring end to end approach having backward and forward linkages covering research, production, post harvest management, processing and marketing. The focus areas of the Mission will be as under :?? Capacity building for production and supply of adequate quality planting material including setting up of scion banks of high yielding mother plants.?? Increased coverage of crops under improved/high yielding cultivars.?? Enhanced production and productivity of horticulture crops.?? Strengthening of infrastructure facilities such as soil and leaf analysis labs, survey and surveillance of pest and diseases, green house, poly houses, micro irrigation, plant health clinics, vermicompost etc.?? Build adequate infrastructure for on farm and post harvest handling.?? Enhanced production of high value low volume horticultural products for exports.

8 (ii)?? Strengthening infrastructure facilities for marketing and export.?? Enhanced production of high value processed products.?? Build a strong base to enhance efficiency in adoption of technologies.?? Work Plan of all states under the Mission have been approved. Technology Mission for Integrated Development of Horticulture in the North Eastern States, including Sikkim. This scheme was launched during and has created an impact in terms of increased area and improved production. The scheme envisages to address all issues relating to the development of horticulture in the above States covering research, development and marketing. The States of J&K, Himachal Pradesh and Uttaranchal have been included under the scheme with effect from the year (iii) National Horticulture Board Programmes: The National Horticulture Board (NHB) has implemented major programmes like Capital Investment Subsidy Scheme for Construction/Expansion/Modernization of Cold Storages and Storages for Horticultural Produce, Development of Commercial Horticulture through Production and Post Harvest Management, Technology Development and its transfer for promotion of horticulture. Close to 30,000 letters of intent have been issued by National Horticulture Board (NHB), which is a quantum jump from earlier years. (iv) Coconut Development Board Programmes: The Coconut Development Board is implementing programmes for the integrated development of coconut industry and technology mission on coconut. The scheme proposes to establish convergence and synergies among ongoing programmes and bridge the gap between new programmes to ensure timely and concurrent attention to all the links in production, processing and diversification. (v) Centrally Sponsored Scheme on Micro Irrigation : A scheme on Micro Irrigation is proposed to be launched to increase the coverage of area under improved irrigation systems, particularly under horticultural crops with an outlay of Rs crore for the X Plan. The scheme is in the final stage of approval. (vi) National Bamboo Mission : A National Bamboo Mission is proposed to be launched to harness the bamboo wealth in the country with an outlay of Rs crore for the X Plan. The scheme is proposed to be implemented through State Bamboo Development Agencies, which need to be constituted. The scheme is in the final stage of approval. 5. AGRICULTURAL MARKETING 1. Construction of Rural Godowns: With a view to create scientific storage in rural areas to meet requirements of farmers for storing farm produce, this Department is implementing a Central Sector Scheme of Construction of Rural Godowns. Under this scheme, subsidy is provided on capital cost of the storage project to persons belonging to private and cooperative sectors. The scheme is being implemented since March, 2001 and so far storage projects

9 have been sanctioned by banks involving an investment of Rs. 1700crore to create lakh tonnes of rural storage capacity in the country against the targeted capacity of lakh tonne. The scheme has helped the farmers in storing their commodities near their fields, obtain pledge loan and marketing credit from the banks, thereby avoiding distress sale at the time of harvest. Capital subsidy to the entrepreneurs is credit linked and back ended and is adjusted in the entrepreneurs account after the repayment of loan which is usually of 7 to 9 years duration. This arrangement ensures utilization of godown project for agricultural purposes. Participation of multiple agencies in the implementation of the scheme has in addition to benefiting the farming community, generated huge investment in creating storage infrastructure in rural areas of the country. 2. Marketing Research & Information Network; With a view to disseminate price and market related information in respect of agricultural commodities to farmers, this Department has implemented a Scheme of Agricultural Marketing Information Network. Under the scheme, so far agricultural markets have been inter-connected of AGMARKNET portal wherein daily prices of more than 300 commodities and about 2000 varieties are being reported. During 10 th Plan 2000 more agricultural markets are planned to be connected to the portal with a central outlay of Rs. 35 crores thereby providing on-line connectivity to 37 per cent of total number of wholesale markets in the country. So far an amount of Rs crore has been released for providing internet connectivity to 2207 markets; for developing 8 State level portals and for market led extension activities in 16 States. Funds have been released to NIC to cover 293 additional markets during The commodities covered include cereals, pulses, oilseeds, fruits and vegetables, spices, fibre crops, livestock, poultry, etc. IFFCO, a cooperative fertilizer company, has been involved in disseminating the price information to a large net work of farmers, cooperatives spread all over the country. National Multi Commodity Exchange of India Ltd, Ahmedabad have been interlinked with the portal to provide on-line information in respect of future prices of future prices of selected commodities. Linkages have also been established with websites of Food & Agriculture Organization (FAO) and Asian & Pacific Coconut Commodity (APCC) for accessing international commodity price trends, 3. Agricultural Marketing Reforms: To make the agricultural marketing system more vibrant and competitive, Government of India had taken the initiative in this regard by setting up of an Inter Ministerial Task Force on Agricultural Marketing Reforms which recommended amendment to the State APMC Act for promotion of direct marketing and contract farming, development of agricultural markets in private and cooperative sectors, stepping up of pledge financing, expansion of future trading to cover all agricultural markets, introduction of negotiable warehouse receipt system and use of information technology to provide market led extension services to the farmers. In order to guide the States in the implementation of suggested reforms, Central Government had now drafted a Model Act on Agricultural Marketing which inter-alia provided for the establishment of direct purchase centers and farmers markets for direct sale to consumers, complete transparency in the pricing system, and payment to farmers on the same day, public private partnership for professional management of existing markets and setting up of

10 Market Standards Bureau for promotion of standardization, grading and quality certification of produce in the National Conference of State Ministers on Agricultural Marketing and Land Reforms held on 7 th January, 2004, all the State Governments had agreed to adopt Model Act on Agricultural Marketing in their respective States. The feed back received by the Department indicate that 19 State Governments /UTs have initiated action for amending their State Agricultural Produce Marketing (Regulations) Acts. 4. Modern Terminal Markets Modern Terminal Markets reduce Post-harvest losses and minimize the role of intermediaries with the latest technology. Ministry of Agriculture has assigned the task of preparation of Detailed Projects Reports for Development of Modern Terminal Markets for Fruits and Vegetables at Nasik, Nagpur, Chandigarh, Patna, Rai and Bhopal. Detailed Project Report (DPR) for Terminal Market at Nasik in Maharashtra has already been prepared and other reports would be completed shortly. 5. Central Sector Scheme for Agri-Business Development. A new Central Sector Scheme for Agri-business Development was approved by the Government on 19 th July, 2005 for implementation during remaining period of Tenth Plan with an outlay of Rs.48 Crores. The outlay for is Rs.10 Crores. The Scheme is to be implemented by Small Farmers Agri-business Consortium (SFAC) in close association with Commercial Banks. In order to facilitate agribusiness development in the country the scheme will: a) Assist agripreneurs to make investments in setting up agribusiness projects through equity participation and b) Provide financial support for preparation of bankable Detailed Project Reports (DPR) through a Project Development Facility (PDF). The main objectives of the Scheme are to facilitate setting up of agribusiness ventures in close association with banks; to catalyze private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income & employment; to strengthen backward linkages of agri-business projects with producers; to assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility and to arrange training and visits, etc. of agripreneurs setting up identified agribusiness projects; SFAC will provide equity to qualifying projects on the recommendations of the bank financing the project. This equity capital will be repayable back to SFAC after the project has repaid the term loan of the financing bank. The quantum of SFAC venture capital assistance will depend on the project cost and will be the lowest of the following - 10% of the total project cost assessed by the bank 26% of the project equity Rs lakhs SFAC will provide financial support to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, and Agriculture graduates (called beneficiary) in the preparation of bankable Detailed Project Reports (DPR) through empanelled consultants/institutions. SFAC will provide for the cost of preparation of DPR upto a ceiling of Rs lakhs depending upon size, location, activity and coverage on a case to case basis.

11 Assistance under the scheme will be available to Individuals, Farmers, Producer Groups, Partnership / Propriety firms, Self help groups, Companies, agripreneurs, units in agri-export zones, and Agriculture graduates Individually or in groups. SFAC has already sanctioned Venture Capital Assistance to 20 agribusiness projects to the tune of Ts lakhs and also preparation 10 DPRs is under process by various consultants. 6. Agriculture Extension A brief of the schemes implemented by the Extension Division is as follows: 1. Mass Media Support to Agriculture This scheme is focusing on two initiatives. The first is use of Doordarshan infrastructure for providing agriculture related information and knowledge to the farming community. 180 Narrow casting Centres, 18 Regional Centres and 1 National Centre of Doordarshan Kendras telecast agricultural programmes for 30 minutes, five days a week. Programmes of Regional Kendras and some Narrowcasting centres are being repeated the next day on respective Regional Satellite Channel. Audio/ Video spots on emerging issues viz. Rabi/Kharif campaign, KCC, Credit Card facility etc. are also publicized through the programme. Live Crop Seminars on DD involving farmers and experts have been organized. The other component of the mass media initiative is use of 96 FM Transmitter of AIR to broadcast area specific agricultural programme with 30 minutes radio transmission in the evening six days a week. Arrangements are being made to obtain farmer s feed back through Audience Research Units of DD & AIR. Concurrent feedback available through letter, phone-in programmes and DAC officers is regularly being given to DD/AIR. National/ State/ District Level Committees have been set up for monitoring of contents and quality of programmes. 2. Support to State Extension Programmes for Extension Reforms : This new Scheme has been approved on 29 th March, and was launched on 7 th May 2005 in a meeting with States. The scheme aims at making extension system farmer driven and farmer accountable by way of new institutional arrangements for technology dissemination in the form of an Agricultural Technology Management Agency (ATMA) at district level to operationalize the extension reforms. It is proposed to cover 252 districts across all the States/UTs in the country. 119 National Resource persons and 600 Master Trainers have been trained till now. Besides, 2 National Level Orientation Workshops and 27 State Level Orientation Workshops have been organised. 3. A Central Sector Scheme Establishment of Agriculture-Clinics and Agri Business Centres by Agriculture Graduates is being implemented since aimed to provide extension services to farmers on payment basis through setting up of economically viable self employment ventures. Selected trainees are provided agripreneurship training by MANAGE through 67 identified Nodal Training Institutions in various states, who also provide handholding support for one year. NABARD monitors the credit support to Agri-Clinics through Commercial Banks candidates have been trained so far out of which 2369 (27% of trained graduates) have set up Agri-Clinic & Agri-business Centres. During the current year, till September, 1596 candidates have been trained, out of which 713 (44.67%) have established their ventures. Rs

12 lakh loan have been sanctioned by 17 banks for 203 ventures from April to July during the current year. 4. Kisan Call Centers These Centers operate through toll free lines throughout the country and provide expert advise to the farmers. A country wide common four digit number 1551 has been allocated to these Centres. 13 such centers located at different places cover farmer s queries from all over the country. The replies to the queries of the farming community are being given in 21 languages. Calls are attended from 6.00 am to pm on all 7 days of the week. Since inception of the scheme scheme in January, Knowledge Management System (KMS) is being developed to create a Data Base for quick, correct and consistent replies to queries of farmers. State Level Monitoring Committees headed by the Principal Secretaries/ Secretaries of Agriculture of concerned States have been set up. Ten Offices of the DAC located in the different parts of the country are also coordinating and monitoring implementation of the scheme. 5. Setting up a Gender Resource Centre (GRC) in DAC, MOA: A Gender Resource Centre has been set up to work as a focal point for convergence and coordination of gender related issues within DAC, MOA and would ensure that policies in agriculture reflect the national commitment on empowerment of women through strategy of mainstreaming and strategy of agenda setting The Gender Budgeting Cell located in the NGRCA will look into the budgetary commitments of various schemes of DAC and proportionate flow of funds and benefits to women farmers. SUPPORT TO STATE EXTENSION PROGRAMMES FOR EXTENSION REFORMS?? OBJECTIVE: To promote farmer driven and farmer accountable institutional arrangement and convergence of extension activities.?? COVERAGE: 252 districts across all States/ UTs.?? Implementation Status: a) Launched on 7 th May 2005 in a meeting with States. b) 2 National Level Orientation Workshops organised in May 05 c) Field visit of State Secretaries to NATP ATMAs organised in June/July. d) 2 Workshops to train 119 National Resource persons have been organized and their services made available to states. e) 27 State Level Orientation Workshops organised. f) 20 Workshops to train about 600 Master Trainers organized so far. g) Inter Departmental Working Group (IDWG) under chairpersonship of Agriculture Production Commissioner /Secretary Agriculture has been established in almost all States. i) All the States have identified State Level HRD Institutions (SAMETIs). j) 26 States have identified 238 districts for implementation of the scheme. k) 170 ATMAs have already been established. l) State Extension Work Plans (SEWPs) have been received from A.P., Jharkhand, H.P., Arunachal Pradesh and Maharashtra. m) Rs crore have been released to the States/UTs. for preparatory and other activities.

13 MASS MEDIA SUPPORT TO AGRICULTURE EXTENSION?? OBJECTIVE: To provide agriculture information and knowledge to farmers, using infrastructure of DD & AIR.?? ACHIEVEMENTS: Full coverage of the scheme has been achieved as follows: a) 180 High/Low Power Transmitter of DD b) 18 Regional Kendras of DD c) DD- National Programme d) 96 FM Radio Stations of AIR?? 30 minutes agriculture programme being broadcast 5/6 days a week.?? Programmes to meet local needs in local language.?? Programmes of Regional Kendras and some Narrowcasting centres are being repeated the next day on respective Regional Satellite Channel.?? All programmes are available on DTH platform.?? NEW INITIATIVES: a) Audio/ Video spots on emerging issues viz. Rabi/Kharif campaign, KCC, Credit Card facility etc. publicised through the programme. b) Live Crop Seminars on DD involving farmers and experts have been organized.?? MONITORING AND SUPPORT ACTIVITIES: a) Arrangements are being made to obtain farmer s feed back through Audience Research Units of DD & AIR. b) Training & Capacity Building of Programme Producers and Agriculture Officers is being organized by MANAGE. c) National/ State/ District Level Committees have been set up for monitoring of contents and quality of programmes. d) Concurrent feedback available through letter, phone-in programmes and DAC officers is regularly being given to DD/AIR. e) Pre- publicity of programmes through local media by State/Distt. Committees.?? A software to provide schedule of programme to be broadcast in advance is being developed by NIC. ACTION TAKEN UNDER KHARIF MEDIA CAMPAIGN 2005?? Detailed advisories for cultivation of Kharif crops were prepared.?? Advisories in Hindi and English were disseminated through DAC s web-site.?? Advisories were also circulated to State Agriculture Department, Kisan Call Centres and PIB for wide publicity.?? Important tips to the farmers to maximize Kharif production were prepared & released thrice through print media advertisements in 69 Vernacular Newspapers of 28 States & 4 UTs.?? Four video and four audio spots/jingles were prepared on Paddy, Cotton, Pulses, and Oilseeds and broadcast through paid advertisements in DD and AIR in prime time through their different Regional Kendras.?? These video and audio spots were also broadcast on DD and AIR during free commercial time under Mass Media Scheme throughout the Kharif season.

14 AGRI-CLINICS AND AGRI-BUSINESS CENTRES SCHEME?? OBJECTIVE: Agri-clinic and Agri-business Centres Scheme was launched on to provide extension services to farmers on payment basis through setting up of economically viable self employment ventures.?? Selected trainees are provided agri-preneurship training for a period of two months in identified Nodal Training Institutes.?? The training component is looked after by MANAGE through 67 identified Nodal Training Institutions in various states, who also provide handholding support for one year.?? The cost per candidate is Rs. 25,000/-.?? NABARD monitors the credit support to Agri-Clinics through Commercial Banks.?? The total outlay for implementation of training component of scheme during Xth Plan is Rs crore & candidates are targeted to be trained. ACHIEVEMENTS?? 8749 candidates have been trained so far out of which 2369 (27% of trained graduates) have set up Agri-Clinic & Agri-business Centres.?? During the current year, till September, 1596 candidates have been trained, out of which 713 (44.67%) have established their ventures.?? Rs lakh loan have been sanctioned by 17 banks for 203 ventures from April to July during the current year.?? Being monitored regularly. Last review meeting was held in Oct. 05.?? Independent evaluation of the scheme is being commissioned. NATIONAL GENDER RESOURCE CENTRE IN AGRICULTURE(NGRCA)?? The NGRCA will act as a focal point for convergence of Gender issues in Agriculture & to ensure that policies in agriculture reflect the national commitment on empowerment of women through strategy of mainstreaming and strategy of agenda setting.?? The Gender Budgeting Cell located in the NGRCA will look into the budgetary commitments of various schemes of DAC and proportionate flow of funds and benefits to women farmers?? The NGRCA aims to support training, research, extension and advocacy on gender issues in Agriculture & allied sectors and forge effective functional linkages with other related departments and agencies.?? During , the NGRCA is commissioning studies on the following areas: a) Document success stories of Women farmers. b) Collate participatory material developed & innovative strategies followed in women specific programmes implemented by DOE. c) Develop Gender Sensitization Module and organize model sensitization workshops. d) Assess gender contents and promote generation of gender disaggregated data in respect of schemes and programmes of DAC.

15 e) Study on land laws/state policies related to women s access to land in selected states.?? Facilitate implementation of the National Plan of Action (NPOA) on National Policy for Empowerment of Women (NPEW) as piloted by Department of Women and Child Development. KISAN CALL CENTRES (KCC) Launched on 21 st January 04 to provide agricultural information to the farming community through toll free telephone lines. A country wide common four digit number 1551 has been allocated for KCC. The replies to the queries of the farming community are being given in 21 languages. Calls are attended from 6.00 am to pm on all 7 days of the week. Since inception of the scheme, over 11 lakh calls have been received. 116 Call Centre Agents & 123 specialists respond to the farmers queries at Level I & II. The KCC agent records the information given to farmers. Unanswered queries are escalated to Level III and the answers are sent by post. Knowledge Management System (KMS) is a software being developed by TCIL to create a Data Base for quick, correct and consistent replies to queries of farmers. It will also be available on internet. Training of Level I & II experts is being organized. Publicity for the scheme is provided by audio/ video-spots during the agricultural programmes of DD and AIR under Mass Media Support Scheme. State Level Monitoring Committees headed by the Principal Secretaries/ Secretaries of Agriculture of concerned States have been set up. Ten Offices of the DAC located in the different parts of the country are also coordinating and monitoring implementation of the scheme. 7. AGRICULTURAL CREDIT The National Common Minimum Programme of the Government envisages doubling of credit flow to agricultural sector in the next three years. Sustained efforts made by the Government and other concerned agencies for improving agricultural production and productivity are expected to lead to even greater demand for agricultural credit in the coming years. The focus of the agriculture credit policy is on progressive institutionalization for providing timely and adequate credit support to farmers with particular focus on small and marginal farmers and weaker sections of society to enable them to adopt modern technology and improved agricultural practices for increasing agricultural production and productivity. 2. FLOW OF CREDIT The flow of institutional credit for agriculture and allied activities has increased from Rs crore in the year to Rs.86,981 crore in The target of flow of credit to agriculture sector for the year was fixed at Rs.1,05,000 crore and the achievement as on is Rs. 1,15, crore. There has been a growth of 32% in credit flow in over the actual disbursement of Rs. 86,981 crore during

16 A target of flow of credit to agriculture sector for the year has been fixed at Rs.1,42,000 crore and the disbursement as on is Rs. 81, crore. 3. POLICY INITIATIVES FOR INCREASING THE FLOW OF CREDIT A comprehensive credit policy was announced by the Government on 18 th June, 2004 containing measures for doubling of agricultural credit flow in next three years and provision of debt relief to the farmers affected by natural calamities. Following are the highlights of this announcement :?? Credit flow to agriculture sector to 30 % per year.?? Debt restructuring in respect of farmers in distress and farmers in arrears providing for rescheduling of outstanding loans over a period of five years including moratorium of two years, thereby making all farmers eligible for fresh credit.?? Special One Time Settlement Scheme for settling the old and chronic loan accounts of small and marginal farmers.?? Banks allowed to finance for redeeming the loans taken by farmers from private moneylenders.?? Commercial Banks to 100 farmers / branch ; 50 lakh new farmers to be financed by the banks in a year.?? New investments in agriculture and allied 2 to 3 projects/ branch.?? Refinements in Kisan Credit Cards (KCCs) and fixation of scale of finance. Achievements A i. The target of agriculture credit flow for the year was fixed at Rs.1,05,000 crore and the achievements as on 31 st March, 2005 is Rs.1,15, crore. There has been a growth of 32 % in credit flow in over the actual disbursement of Rs.86,981 crore during ii. Around lakh new farmers have been financed by Commercial Banks and RRBs as against a target of 50 lakh. Besides, Cooperative Banks have financed around lakh new farmers, taking the total number of new farmers financed during the year to lakhs. iii. An amount of Rs.11, crore has been provided as debt relief by all agencies as on 31 st March, Under Special One Time Settlement Scheme, old and chronic loans amounting of Rs crore have been settled. iv. Commercial Banks have extended loans to 16,758 farmers indebted to informal sources like moneylenders to redeem their debt with them and provided about Rs.57 crore upto 31 st March, B i. A target of flow of credit to agriculture sector for the year has been fixed at Rs.1,42,000 crore and the disbursement as on is Rs. 81, crore forming 57.52% of the annual target of Rs.1,42,000 crore. ii. Around lakh new farmers have been financed by Public Sector Commercial Banks. Besides they have been provided loans of Rs. 11,861 crore against these

17 accounts, which accounts for 25% of their disbursements. Of these, lakh accounts have been financed to SF/MF and another 0.43 lakh to tenant farmers, sharecroppers and oral lessees. iii. Private Sector Commercial Banks have financed 2.61 Lakh new farmers whereas Cooperatives and RRBs have financed lakh and 8.07 lakh new farmers respectively. The total number of new farmers financed by all agencies during was to extent of lakh as on 30 th September, 05. iv. An amount of Rs. 3, crore has been provided as debt relief to farmers in distress, farmers in arrears and under OTS during the first six months of v. Commercial Banks have provided Rs crore as advances to farmers to enable them to redeem their debts from money lenders. The corresponding figures for Cooperative Banks and RRBs are Rs crore and Rs crore respectively. (II) KISAN CREDIT CARD SCHEME Kisan Credit Card (KCC) is one of the key products developed to improve farmers accessibility to bank credit for production purposes, simplify the credit delivery mechanism and provide more flexibility in the use of credit. KCC Scheme aims at providing adequate and timely support from the banking system to farmers for their cultivation needs in a flexible, hassle free and cost effective manner. The progress in the issuance of KCC is quite impressive and banks have issued more than 516 lakh KCCs upto 30 th June, There is coverage of risk of KCC holders against accidental death or permanent disability upto a maximum of Rs.50,000 and Rs.25,000 respectively. (III). REVAMPING OF COOPRATIVE CREDIT STRUCTURE In August, 2004, Government of India constituted a Task Force under the Chairmanship of Prof. A Vaidyanathan for suggesting measures for revival of Cooperative Credit Institutions. The Task Force in its report for short term cooperative credit structure has recommended a financial package of Rs.14,839 crore for revival of the credit cooperative institutions. The package covers accumulated losses, unpaid invoked guarantees, receivables from State Governments, return of share capital to State Governments, Human Resources Development, conduct of special audits, computerization, implementation cost etc. Provision of financial assistance is linked to reforms in cooperative sector. The Government, in Principle, has accepted recommendations of the Task Force and is working out the modalities for its implementation. A near consensus on the major recommendations of the Task Force has been arrived at with the State Governments. National Agricultural Insurance Scheme (NAIS) National Agricultural Insurance Scheme (NAIS) (Rashtriya Krishi Bima Yojana) is being implemented from Rabi season in the country. Agriculture Insurance Company of India Ltd. (AIC) is the implementing agency for the scheme. The scheme is available to all the farmers loanee and non-loanee both -

18 irrespective of their size of holding. It envisages coverage of all the food crops (cereals, millets and pulses), oilseeds and annual commercial/horticultrural crops, in respect of which past yield data is available for adequate number of years. Among the annual commercial/horticultural eleven crops viz. sugarcane, potato, cotton, ginger, onion, turmeric, chillies, pine-apple, annual banana, jute and tapioca have already been covered under the scheme. All other annual commercial/horticultural crops will be placed under insurance cover in due course of time subject to availability of past yield data. 2. The premium rates are 3.5% per cent (of sum insured) for bajra and oilseeds, 2.5% for other Kharif crops; 1.5 per cent for wheat, and 2 per cent for other Rabi crops. In the case of commercial/horticultural crops, actuarial rates are being charged. Small and marginal are entitled to subsidy of 50% of the premium charged from them, which is shared on 50 : 50 basis by the Central and State Governments. The premium subsidy is required to be phased out over a period of 5 years. During , 10% subsidy in premium is available to small and marginal farmers. 3. The scheme is operating on the basis of Area Approach i.e. defined areas for each notified crops for widespread calamities and on an individual basis for localised calamities such as hailstorm, landslide, cyclone and flood. Individual based assessment in case of localised calamities is being implemented in limited areas, on experimental basis, initially and shall be extended in the light of operational experience gained. Under the new scheme, each participating State/UT is required to reach the level of Gram Panchayat as the unit of insurance in a maximum period of three years. 4. At present, the scheme is being implemented by the following 23 States and 2 Union Territories: 1. Andhra Pradesh 2. Assam 3. Bihar 4.Goa 5. Gujarat 6.Himachal Pradesh 7. Karnataka 8. Kerala 9. Maharashtra 10.Madhya Pradesh 11. Meghalaya 12. Tamil Nadu 13.Uttar Pradesh 14. West Bengal 15. Sikkim 16. Chattisgarh 17. Jharkhand 18. Tripura 19. Orissa 20. Jammu & Kashmir 21. Uttranchal 22. Rajasthan 23. Haryana 24. Pondicherry 25. Andaman and Nicobar 5. During the last ten crop seasons i.e. from Rabi to Kharif 2004, 589 lakh farmers have been covered over an area of about 958 lakh hectares insuring a sum amounting to about Rs crore under the scheme. Claims to the tune of about Rs.