STRATEGIES FOR INCREASING

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STRATEGIES FOR INCREASING AGRICULTURE INCOME
DR. C. D. MAYEE AGRICULTURE
COMMISSIONER Ministry of Agriculture
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• INDIAN AGRICULTURE- STRENGTHS
• In India, 52 of total land is cultivable as
  against 11 in the World
• All 15 major climates of the World are in
  India. Snow bound Himalayas to hot humid
  southern peninsula, Thar desert to heavy
  rain areas
• There are 20 agro-climatic regions in the
  country
• Nearly 46 soil types out of 60 in the whole
  world
• Sunshine hrs and day length ideally suited
  for round the year cultivation of crops
• Largest technical / trained manpower and well
  organized research education system
• Agriculture contributes 24.2 to GDP, 15.2 of
  total exports and provides employment to 58.4
  of countrys work force

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• INDIAN AGRICULTURE- STRENGTHS contd.
• India is the mega centre for biodiversity in
  plants, animals, insects, microorganism and
  accounts for 17 animal, 12 plants and 10 fish
  genetic resources of the globe
• Ranks first in production of pulses, tea, jute
  allied fibres
• Second largest producer of wheat, rice,
  groundnut, fruits vegetables, sugarcane and
  third largest producer of mustard, potatoes,
  cotton lint, etc
• Wide array of aromatic and medicinal plants
  (gt 10,000 species).

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LIVESTOCK SECTOR - STRENGTHS

• India has 16 of cattle, 57 of buffalo, 17 of
  goats and 5 of sheep population of the world
• India is the largest producer of milk in the
  world with production of 84.6 million tonnes
  during 2001-02
• India ranks fifth in egg production in the world
  with egg production of 34.00 billion in 2001-02
• India ranks fourth in fish production and second
  in aquaculture in the world with a coastline of
  8118 kms
• Export of fish over Rs 6000 crores.

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CURRENT PRODUCTION SCENARIO (2001-02)
(million tonnes)
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EXPORT OF FOOD GRAINS, OILSEEDS / OILS
HORTICULTURE PRODUCTS
( 000 tonnes)
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EXPORT OF FOOD GRAINS, OILSEEDS / OILS
HORTICULTURE PRODUCTS
(Value is Rs crore)
Agriculture contributes between 13-16 to total
national export
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IMPORT OF FOODGRAINS, OILSEEDS/ OILS
HORTICULTURE PRODUCTS
(000 tonnes)
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IMPORT OF FOOD GRAINS, OILSEEDS / OILS
HORTICULTURE PRODUCTS
(Value in Rs. Crores)
Agriculture imports range from 5-8 of the total
imports
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• CURRENT PRESSURES ON AGRICULTURE
• Population growth - likely to reach 120 crores by
  2011-12
• Stagnant Resource base
• Diminishing and deteriorating water and land
  resource
• Increasing biotic / abiotic stresses
• Loss of bio diversity
• Decline in Factor Productivity
• Globalization and liberalization
• Slow pace of mechanization

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CONSTRAINTS OF LIVESTOCK SECTOR

• Low level of investment (contributes 6.8 to
  total GDP while investment is 0.6)
• Disaggregate and unorganised form of activity
• Inadequate infrastructure facilities
• Lack of sanitary and hygienic conditions
• Inadequate inputs and delivery system including
  health delivery system
• Lack of extension services and facilities

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• NECESSITY ?
• To raise Indian Agricultures growth rate to 4
  per cent per annum
• Ensure freedom to farmers to maximise income
• Generate more employment and reduce poverty
• Obtain Food, Livelihood and Nutritional Security

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PRODUCTION PROJECTIONS 2011-12(in million tonnes)
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PRODUCTION PROJECTIONS (contd) 2011-12
(Million tonnes)
Horticulture
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PRODUCTION PROJECTIONS (contd.) 2011-12
LIVESTOCK
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Opportunities for Increasing Agriculture
Production

• Domestic Demand for cereals projected to 295 m
  tonnes by 2020
• Global Trade of Agricultural goods projected at
  US 640 billion by 2012
• Current level is marginal in World Trade ( 1.26
  of total in 2000)

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Advantages unbound in increasing productivity
exports
(1999-2001)
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• GENERAL STRATEGIES
• REGIONALLY DIFFERENTIATED APPROACH
• High productivity zone e.g. Diversification,
  value addition
• Low productivity, high potential zone e.g.
  Enhance gross cropped area, farm supportive
  infrastructure
• Low productivity zone e.g. Water Management,
  soil conservation , INM
• Ecologically fragile zone eg. Sustainable
  alternate cropping, horticulture, agroforestry

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RESOURCE MANAGEMENT
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• ACTIVITIES ENVISAGED
• Water Management
• Generation of Technology
• Transfer of Technology
• Farming Resource Management
• Marketing Storage Infrastructure
• Post harvest Technology, Processing and Value
  Addition
• Risk Management
• Policy Issues

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WATER MANAGEMENT-

• ACTIVITY/ PROGRAMME
• Completion of incomplete irrigation projects
• Reclamation of waterlogged areas
• Minor Irrigation
• Micro Irrigation
• T O T A L

• ADDITIONAL IRRIGATION COVERAGE ( m ha)
• 12
• 2
• 5
• 2
• 21

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FARM RESOURCE MANAGEMENT-

• Increase in Seed Replacement Ratio from existing
  12 to 20
• Increased supply of elite planting material,
  tissue cultured plantlets in plantation crops
• Increase in IPM coverage from 5 to 15 of the
  cropped area
• Increase in fertilizer use (NPK) from 91.5 kg/ha
  to 160 kg/ha
• Increase in farm mechanization from 25 to 40
• Increase in credit flow growth rate from 18 to
  over 25

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TRANSFER OF TECHNOLOGY-

• Expansion of area under hybrids eg rice ( 15 m
  ha), pigeon pea ( 1m ha), sunflower (1.0 m ha),
  safflower (0.5 m ha), maize (4.0 m ha)
• Introduction and expansion of area under early
  maturing, high yielding inbred cultivars
• Capacity building and strengthening of training
  facilities
• Increased use of mass media - Agri channels,
  Agri-Clinics, IT etc. and private sector
  participation.

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MARKETING AND STORAGE -

• Strengthening and Creation of
• Farmers Markets 7500 nos
• Rural Storage 30.50 m
  tonnes
• Cold Storage 8.50 m
  tonnes
• Pledge Financing
• Marketing Credit/year Rs 10,000
  crore

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TRADE VALUE INCREASE NO BENEFIT TO FARMERS

• Total Increase 60-70
• Farmers to wholesalers 30-35
• Wastage 15-25
• Transportation 10-12

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POST HARVEST MANAGEMENT, PROCESSING AND VALUE
ADDITION-

• CREATION OF ADEQUATE INFRASTUCTURE FOR
• Strengthening of Post harvest technology
  facilities
• Processing facilities
• Packaging facilities
• Upgradation development of processing
  technology
• Establishment of cold chains

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RISK MANAGEMENT-

• 35 m ha area to be covered under watershed
  development
• Reclamation of 12 m ha of degraded land for use
  in agriculture
• Farm Income Insurance Full coverage by 2011

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POLICY ISSUES-

• Crop Diversification
• Agriculture Marketing Reforms
• Promotion of Contract Farming / Land Leasing /
  Land Share Producer Companies
• Expansion of Agriculture Credit
• Remunerative prices to the farmers
• Taxation reforms
• Encourage organic farming for niche markets
• Create adequate infrastructure for quality
  control certification to encourage exports

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Sector-wise Incremental Capital Output Ratio
(ICOR) under Different Sectors of
the Economy
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Global Ranking of India in Area, Production
Yield in 2000
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Indian Farmer- A Centre Point of Development

• Conservation of
• Resources
• Sustainable
• Environment

• More Profits
• More Investments

Natural Inputs Soil Water
Optimum Balance
Enabler
Hi-tech Agriculture
Markets
Indian Farmer
Feedback
Knowledge
Technological Support

• Better Productivity
• Cost Savings

• Improved Quality
• Higher Value

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THANK YOU