Annexures
1) Field Visit to Punjab
2) Field Visit to Maharashtra
3) Recommendations on the Draft National
Biotechnology Policy
4) Letter to Chief Ministers of States on
implementation of Mission 2007 Every Village a
Knowledge Centre
5) Press Release of the National Advisory
Council
6) Gist of the Communication sent by the National
Advisory Council
7) Constitution of Agriculture Coordination
Committee
8) Summary of Consultations held
a) Empowering of elected male and female members
of Panchayats
b) Land Rights to Women in the light of
Amendment to Hindu Succession Amendment Act, 2005
c) Women in Agriculture What Next ?

4
From Crisis to Confidence

Failure to achieve Tenth Plan Targets has serious
implications for the country
First two Reports of NCF submitted in December
2004 and August 2005 have analyzed reasons for
the agricultural decline and farmers distress
Several suggestions have also been made to
reverse the decline
Govt. of India has also taken several steps to
address the issue Bharat Nirman, National
Horticulture Mission, National Rural Health
Mission, NREG Act, National Rainfed Area
Authority, etc.

5
2006-07 Year of Agricultural Renewal

The time is opportune for initiating an
integrated programme for agricultural renewal.
The programme should consist of the following
five mutually interactive and reinforcing action
plans
Soil Health Enhancement
Irrigation Water Supply Augmentation and Demand
Management
Credit and Insurance
Technology demonstration and dissemination
Farmer-friendly Market

6
Year of Soil Health Enhancement

Launch concerted soil health awareness and
improvement programmes with the active
participation of Central and State Departments of
Agriculture, Agriculture Universities, ICAR
institutes, Fertilizer companies, Panchayat Raj
Institutions, farmers organizations and NGOs
they may commemorate 2006-07 as Soil Health
Enhancement Year
Issue every farm family with a Soil Health Card
Treat problem soils and wastelands by breeding
soils for higher productivity
Launch Panchayat-led Community Landcare Movement

7
Irrigation Water Supply Augmentation and Demand
Management

Make rainwater harvesting and aquifer recharge
mandatory
Promote cultivation of low water requiring, high
value crops in areas where water is a constraint
Popularize efficient irrigation techniques like
drip and sprinkler irrigation
Promote conjunctive use of rain, river, ground,
sea and treated sewage water
Integrate watershed management with appropriate
Technology Missions
Promote seawater farming involving coastal
forestry and aquaculture along the coast in AN
and Lakshadweep islands.
Promote water literacy and water quality
management

8
Credit and Insurance

Provide support to banking system for reducing
rate of interest for crop loans to 4 percent
Expand outreach move from micro-finance to
livelihood finance to ensure sustainable
livelihoods
Establish Agricultural Risk Fund to provide
farmers relief during disease and disaster
Introduce negotiable Warehouse Receipt
Establish a Rural Insurance Development Fund and
Credit Counseling Centres particularly in
distress hotspots
Promote Self Help Group Capacity Building and
Mentoring Centres
Promote and make Crop Insurance farmer-friendly

9
Technology

ICAR institutions and Agricultural Universities
may commemorate 2006-07 as the Agricultural
Technology Year
Organise 60,000 Lab to Land programmes in the
areas of post-harvest technology and
value-addition Promote Farm Schools in the
fields of farmer-achievers
Organise Small Holders Cotton, Horticulture and
Aquaculture Estates to provide economies of scale
Train selected Panchayat members as Rural Farm
Science Managers for management of new
technologies like ICT and biotechnology

10
Market

Establish National Land Use Advisory Service
linked to State and Block Level Land Use Advisory
Services for proactive advice to farmers
The Land Use Advisory Service should cover crop
and animal husbandry, horticulture, inland
fisheries, forestry and agro-forestry
Promote farmer-friendly contract cultivation
practices, community based farmers organisations
and direct farmer-consumer linkage where possible
Review the Essential Commodities Act (ECA) and
State APMC Acts. Place the ECA under suspended
animation
Promote need based MSP intervention for sensitive
commodities under the Market Intervention Scheme

11
Establishment of an Indian Trade Organisation
(ITO)

Our agricultural exports account for only 6.2
percent of total agricultural production
For nationally consumed commodities, we should
introduce our own boxes for domestic agricultural
support on the model of WTOs Blue, Green and
Amber boxes
Need to segregate the small support we extend to
our farmers into, lives and livelihood saving
support for commodities consumed nationally, and
support for export commodities, in accordance
with WTO negotiations
ITO will be a Virtual Organisation specializing
in WTO affairs

12
Indian Trade Organisation (ITO)(Professionally-le
d, 21st Century Virtual Organisation established
by the Ministry of Commerce Ministry of
Agriculture and Food)
Two Specialised Wings
Enlarging the basket of Farm and Non-farm
Commodities for the export market (about 7)
Farm Commodities consumed nationally (about 93)
Ministry of Agriculture and Food
Ministry of Commerce
National and State Land Use Advisory Service
WTO Regulations

Livelihood Security Box
Life saving support
Implementation of Special Products and
(SPs) and Special Safeguard Mechanism (SSM)
Tariff protection
Quantitative restriction on imports

Market Intelligence and Early Warning
13
National Policy for Farmers

Year of Agricultural Renewal should be launched
with the support of State Governments, Farmers
Organisations, Business and Industry, Academia,
Civil Society Organisations, Panchayati Raj
Institutions and Mass Media
Active involvement of State Governments, Union
Territories and the private sector is crucial
May end with Parliament adopting a National
Policy for Farmers
NCF will submit a draft National Policy for
Farmers in April 2006 for discussion

14
Indian Farmers and Bharat Nirman

The following four steps are needed for the
success of Bharat Nirman
Consultation and Consensus (particularly with
reference to irrigation)
Capacity Building (Bharat Nirman Corps)
Care and Management (oversight by Gram Sabha)
Convergence and Synergy among several new
initiatives like NREG Act
Inclusion of Knowledge Connectivity as an
integral component of Bharat Nirman is a welcome
step
Need for a forward-looking Community Radio Policy

15
Next Steps

National Year of Agricultural Renewal Programme
may be discussed and finalised soon at the
following fora
NDC Committeee on Agriculture chaired by the
Union Minister for Agriculture
Agriculture Coordination Committee chaired by
the Prime Minister
May be launched on Baisakhi Day, 13 April, 2006

16
Agricultural Research Towards Science-led
Evergreen Revolution

Suggest comprehensive policy reforms designed
to enhance investment in agricultural research
..triggering agricultural growth-led economic
progress, which can lead to opportunities for a
healthy and productive life to rural families
NCF Term of Reference

17
Indian National Agricultural Research System
(NARS)

The Indian NARS one of the largest in the
world, comprises network of Central RD
organizations (90) and SAUs (40) and coordinated
research programmes (91)
Nearly Rs. 31 billion annual expenditure, 85
public sector. Large scientific manpower (21,869)
in NARS only 4.3 of them in private
sector.Well-trained scientists - more than
two-thirds hold Ph.Ds.
Internal rate of return to research investment
(median value) was more than 50 comparable to
global experience, and in excess of other public
investment in agriculture. Research investment
contributes significantly to poverty reduction -
its direct impact is next only to that of rural
infrastructure.

18
The Issues

Dominance of public sector and increasing role of
the Centre. Decline of local RD systems and
increasing dominance of frontline extension
system, KVKs , ATMA, Lab-to-Land, Institute
Village Linkage Programme etc. with varying
successes.
SAUs are growing in number with inadequate State
government support, adversely impacting research
outcomes and technology impact.
Isolation of the extension system from Research
Education (RE) has led to the weakening of the
extension system in several States
Private RD growing accent on acceleration of
Public-Private Partnerships

19
Funding of Agricultural RD

Despite an increasing trend, Research investment
(0.3 of AgGDP) is only half of that in
developing countries (0.6) and about one-tenth
of that in industrialized countries (2.6).
RE funding, mainly from domestic resources and
private funding accounts for about 14 of the
total
Operational support for RE has not kept pace
with overall growth in RE funding, particularly
in the States
RE intensity of State funding highly uneven
(0.08 in UP and 1.4 in HP)
With the exception of a few States, investment
commitment to RE is not strong, and in some
States this has declined

20
Resource Allocations and Targeting

Eastern, hill, and western dry regions account
for less than one-fifth of the national research
resources, far below their agricultural share in
the national economy and social and scientific
needs.
Gross underinvestment in the eastern region,
which has high growth potential.
Resource allocation to the dry semi-arid region
has caught up in recent times, but is still far
short of the required level
The allocation to livestock and fisheries is far
below the level warranted by their shares in
national agricultural GDP and the potential

21
Challenges for ST Research

Stubbornly high incidence of hunger and poverty
widening regional imbalances rising rural
unemployment and unrest
Agricultural growth rate and investment during
2000-04, is the lowest in the last 40 years.
Technology fatigue, decelerating Total Factor
Productivity growth rate in Indo-Gangetic Plains,
average yields of most commodities around 40 -
50 of the worlds average serious yield gaps
huge post harvest losses.
Worsening terms of trade for agriculture,
widening rural-urban income divides, decreasing
net trade intensity
Degradation of natural resources hungry and
thirsty soils, depleting water table, quantity
and quality of water, and fast eroding
agro-biodiversity

22
Investing in Strategic Agricultural Research
Science

NCF applauds the Governments initiative to
establish National Science Education and Research
Foundation for frontline research in science.
The Commission recommends a provision of Rs 1000
crore as a one-time grant to NARS to bridge the
critical gaps in scientific infrastructure in
frontier areas of technology, so as to enable the
Nation to enhance its agricultural
competitiveness.
A National Board for Strategic Research in
Agriculture (NBSRA) may be set up as already
announced in the 2005-06 Budget, to coordinate
and harness advances in Basic Sciences for
agricultural progress.

23
Policy Reforms by Central and State Governments

Increase RE intensity to one percent of AgGDP
In-house resource generation and growth of
private investment will not bridge the gap
Priority to Eastern and North-eastern India,
areas with high growth potential, in allocation
of additional resources
Expenditure per scientist in SAUs should be at
par with ICAR
Maintain critical scientific and resource mass in
different ICAR institutes and SAUs
Enhance share of operational expenses of
scientists
Dedicated public funds to promote
Basic and strategic research
Human capital development

24
Policy Reforms by Central and State Governments

Competitive funding for - Networking,
institutional reforms address key RD
challenges Strengthen project based funding
Evolve National Innovation System - align policy,
incentives and regulations to foster innovations
and entrepreneurship in agricultural science
establish Genius Award for young scientists
IPRs for technology transfer, resources
generation and evolving competitive innovation
markets, with due provision for social inclusion
in access to new technologies
External assistance and bilateral and
multilateral cooperation for capacity building to
bridge strategic gaps
State Governments should enhance their
investment particularly to professionalise
extension and ensure its effective linkage with
research systems

25
Promote Investment in Agricultural Research by
Private Sector

Provide tax incentives, including tax holidays
Strengthen national capacities in regulatory
matters, especially IPR, SPS and quarantine
facilities to promote technology acquisition
particularly from developed countries.
Encourage testing of new varieties bred by
private sector and their other technological
products in the public sector supported national
technology testing programmes
Undertake joint research activities with clearly
defined responsibility, accountability and profit
sharing
Develop Codes of Conduct for mutually beneficial
public- private sector partnerships

26
TOWARDS AN INDIAN SINGLE MARKET

Share of internal trade in GDP is 13.4 adv
estimates 2001- 02 and it provides employment to
about 36 million people, a majority of whom are
self employed.
The major barriers faced by Indian internal trade
are due to
Diversity of controls exercised by multiple
authorities
Restrictions over the movement of goods at inter-
State and district levels
Considerable variations in taxes/charges
Impact
Breaking up of the vast Indian Market into large
number of smaller regional markets
Increased paperwork
Additional costs in terms of time and resources
Inevitable corruption and malpractices

FAO conducted a study regarding the EU experience
in creating a Common Market on request from NCF
through the MoA. Report received.
Removal of barriers to internal trade
Removal of barriers/restrictions to internal
trade would result in tightening up supply chain
and realisation of scale economies in production
and trade leading to better prices for the
farmers and benefit to the consumers.
The various barriers to internal trade in India
could be grouped as under
Restrictions imposed by the Essential Commodities
Act, ECA 1955, Prevention of Food Adulteration
Act, 1954 etc.
Fiscal issues
Transport related matters
Agriculture trade related issues

28
Remedies/Suggestions to remove the barriers

Restrictions imposed by the ECA, 1955/ Prevention
of
Food Adulteration Act, 1954 etc.
Place the ECA, 1955 under suspended animation if
needed revive it for specific commodity, area or
period as the case may be.
Later, on being satisfied that market operations
can handle the scarcity conditions, as and when
they arise, scrap the Act ibid.
If the ECA, 1955 cannot be put under suspended
animation, remove the agricultural products from
the list of Essential Commodities.
Consider passing a Central legislation
prohibiting imposition of restrictions on
movement, storing etc. of any goods by the
States.
The proposed Food Safety and Standards Bill
2005 is a welcome step in the direction of
laying science-based standards and an effective
control system.

29
Fiscal Issues

States which have not introduced VAT be persuaded
to adopt it.
On reaching an agreement between the Centre and
the States regarding sharing the taxes, the State
VAT be replaced by national VAT.
Octroi/local taxes to be abolished. If not
possible, at least agricultural products be
exempted from these.
Change the administration of taxes so that no
border checks for tax payment/verification of
payments is done.
Alternatively agriculture produce as a policy be
exempted from indirect taxes .

30
Fiscal Issues

Some options for compensating States for the loss
of revenue
Increased devolution to the States.
Charging a surcharge on processed and
semi-processed goods.
Charge a petrol cess of 0.5
Refer to the Finance Commission for suggesting
methods to make the Indian Single Market a
win-win situation for all.

31
Transport related Matters

The system of annual fitness certification and
annual road charges may be replaced by 10 years
charge.
The Government may either do away with National
Permit or charge uniform amount for National
Permit and allow the vehicles to ply anywhere in
the country.
All checks (other than those for security
reasons) may be given up or atleast integrated
under one window.
Use of computers be encouraged to minimise the
detention time at various checkpoints.
The cartelisation by truck operators effectively
bars entry of new players in the transport
sector. This aspect may be studied and
appropriate measures taken to remedy the
situation.

32
Agricultural Trade Related

The APMC Acts need amendment.
The model APMC Act circulated by the Government
of India may also be relooked to ensure that all
barriers to internal trade would be removed by
the proposed amendments.
The additional taxes by the APMCs like rural
development cess, infrastructure cess and
education cess etc. may be discontinued at the
earliest.
The market tax charged by the APMCs may be
replaced by a consolidated services charge for
use of market infrastructure.
It may be made obligatory for APMCs to publish
daily arrivals, maximum and minimum prices and
the balance of stocks. Availability of this
information on daily basis could be the first
step to develop an all India market.

33
Supporting Measures

A host of supporting measures and policies are
needed to ensure
that the benefits of an Indian Single Market
reach the farmers.
Some of these are
Standardisation and harmonisation of quality
standards and controls.
Policy support for creation of Farmers
Communities/ Organisations.
Improve institutional credit availability.
Development of a Negotiable Warehouse Receipt
System.
More farmer-friendly Commodity Forward Trading
system.
Improving market information for the farmers.
Improve rural connectivity and other
infrastructure.

34
Conclusion

The need is to build on the developments already
made like
Asking the State Governments to amend APMC Act.
Proposed Food Safety and Standards Bill, 2005.
Reduction in number of commodities covered under
the Essential Commodities Act, 1955.
Proposed Warehouse Receipt Bill.
Introduction of State VAT in many States.
The matters regarding compensation to the States
due to introduction of national VAT, withdrawal
of Octroi/other State specific taxes, reduction
in incomes of APMCs etc. would pose problem in
reaching a settlement in our federal system. The
Government may consider requesting the Finance
Commission to address this issue so that Indian
Single Market could become a win-win situation
for all.

35
Technology Missions Way Forward

Technology Missions conceptualized as a technique
to achieve goals through infusion of technology
and within accelerated timeframe with an end to
end approach by late Shri Rajiv Gandhi and
designed and pursued by Shri Sam Pitroda in 1986.
Shri Gandhi also stressed on the selection of a
dynamic and knowledgeable Mission Director
supported by dedicated staff. Mission was to have
full funding with no restrictions on Mission
Director except certain achievements within a
timeframe.

36
Review of Technology Missions (TM) reveals

TM on Oilseeds and Pulses succeeded in the first
10 years because of attention to essential
ingredients mentioned earlier but failed later
due to adverse trade policies.
TM on Cotton can realize its full potential by
adopting the elements enunciated by late Shri
Rajiv Gandhi.
TM on Coconut has focused only on Disease
Management and Diversification without attention
to end-to-end approach and introduction of
technology and marketing.
NHM for its success, needs to address issues of
infusion of technology, low productivity,
post-harvest losses and Indias insignificant
share in world horticulture market.
A separate Mission on Medicinal Plants is
recommended.
TM on Horticulture in NE has focused on area
expansion only. Attention is needed for better
Mini Mission linkages, better choice of
varieties, mother plant resources and other
planting material, and promotion of border trade.

37
Recommendations

Technology Missions should become technology rich
in addition to providing appropriate subsidies.
There should be well-defined outcome indicators
and monitoring tools.
There should be a defined and end to end approach
covering all subjects in the cultivation-consumpti
on-commerce chain.
Target crop should have available large untapped
opportunities for improving productivity and
profitability.

38
Recommendations

There should be a potential for generation of
technology with possibility of quantum jump in
yields through new varieties.
Mission should be a stand alone autonomous entity
with its own full time Mission Director and with
substantial technical and administrative
abilities.
Mission Director may be a professional achiever
with minimum 5 year term with accountability,
have a supporting core group of multidisciplinary
posts which could also be filled up on contract
for 5 years, not only from departments but from
public/private sector/NGOs. Support staff must
not have additional responsibilities in
Departments.
Recognizing the role of Biotechnology, efforts of
ICAR should be supplemented with those from other
science departments, like DBT.

39
Recommendations

Linkages with other organisations - Looking at
importance of post-harvest processing and value
addition for exports, organizations like CSIR
should also contribute actively.
Research should bear the cost-risk-return factor
in mind to encourage easy adoption. Research
should also be gender sensitive and promote
reduction of drudgery for women in Agriculture.
Trade policies should not work at cross purpose
with Mission objectives, even though
international trade environment may become
pressing in the contemporary context.
A Mini Mission on Trade Strategy should be added
to every TM in view of its importance for incomes
of farmers. The proposed Indian Trade
Organization can assist this activity.

40
Recommendations

There should be greater focus on marketing
efficiency and price signals in addition to
infusion of technologies.
Decision making should be with an Empowered
Committee headed by Secretary, Coordination in
Cabinet Secretariat, to allow more frequent and
focussed meetings.
Excessive reporting should be avoided by reducing
the periodicity of reports Ensure adequate time
for field work for the staff.
Frequent inspection by small multidisciplinary
teams of retired officials, scientists, NGOs,
farmers etc. should be ensured.
Concurrent evaluation by External Agencies for
mid-course correction would be critical.

41
Recommendations

Specialized financial release procedure should be
devised to ensure timely release of funds to
States/ field agencies.
Mission should have a term of ten years to ensure
adequate time for planning and implementation and
yet curb complacency.
Farmers should be associated with all levels of
decision making and monitoring
Mission activity should be reviewed by State
Planning Boards
Watershed or irrigation command area should be
the point of convergence and integration of all
relevant Technology Missions.

42
Recommendations

All Missions should be integrated under an
umbrella to be called National Federation of Farm
Technology Missions to be chaired by a practicing
farmer.
Focus of the Technology Missions should not only
be an enhancement in productivity but an increase
in income levels of farmers.
Village Knowledge Centres should work as
frontline delivery system for speedier and cost
effective dissemination of technology.
Centrality of Panchayati Raj Institutions must be
built in while formulating the Technology
Missions.

43
Recommendations

To sum up, the Technology Mission is an efficient
tool for programme design and implementation for
achieving well defined production goals on a time
bound and cost effective basis. The Mission mode
method of programme design helps to facilitate
concurrent and adequate attention to all links in
the production-processing-consumption-marketing
chain. It should have built in methods of
continuous monitoring and evaluation, so that
mid-course corrections can be introduced in
operational strategies when needed.
NCF recommends that the existing organizational
and managerial structures, in the case of the
Technology Missions in Cotton and Horticulture be
reviewed in the above context.
Authority, Accountability, and Achievement,
should be the basic management principles
underpinning Technology Missions.