Introduction
The Ministry
comprises of Department of Agriculture & Cooperation, Department of
Agricultural Research & Education and Department of Animal Husbandry &
Dairying. The Secretary (A & C) is the administrative Head of the
Department and Principal Adviser to the Minister on all matters of policy and
administration within the Department. He is assisted by Special Secretaries,
Additional Secretaries, Agriculture Commissioner, Joint Secretaries, Economic
Statistical Advisor, Horticulture Commissioner and Plant Protection Advisor.
There is one Technology Mission on Oil Seeds and Pulses & one Commission
for Agricultural Cost & Prices (CACP) under the Department. Hon. Union
Minister assisted by Minister of State for Agriculture holds overall charge of
the Ministry of Agriculture. Ministry of Agriculture comprises of three
Departments viz. Department of Agriculture and Cooperation, Department of
Agricultural Research & Education/ICAR and Department of Animal Husbandry
& Dairying. Secretary (A&C) is the Administrative Head of the
Department and Principal Adviser to the Minister on all matters of policy and
administration within the Department of Agriculture & Cooperation. He is
assisted by Special Secretaries, Additional Secretaries, Agriculture
Commissioner, Joint Secretaries, Economic & Statistical Adviser,
Horticulture Commissioner and Plant Protection Adviser. A Technology Mission on
oilseeds and Pulses and the Commission for Agricultural Cost &Prices (CACP)
also function under the Department of Agriculture & Cooperation. The
Department of Agriculture and Cooperation is responsible for the formulation
and implementation of National policies and programmes aimed at achieving rapid
agricultural growth through optimum utilization of the country's land, water,
soil and plant resources. The Department undertakes all possible measures to
ensure timely and adequate supply of inputs and services such as fertilizers,
seeds pesticides, agricultural implements and also provides agricultural
credit, crops insurance and ensures remunerative returns to the farmer for his
agricultural produce. The Department is entrusted with the responsibility of
collection and maintenance of a wide range of statistical and economic data
relating to agriculture, required for development planning, organizing
agricultural census, assisting and advising the States in undertaking scarcity
relief measures and in management of natural calamities e.g. flood, drought,
cyclone, etc. Matters relating to formulation of overall cooperative policy in
the country, national cooperative organizations, cooperative training and
education come under the preview of the Department. The Department also
participates in activities of international organizations, for fostering
bilateral cooperation in agricultural and allied sectors and for promotion of
export in agricultural commodities. The Department is organized into 22
Divisions and Technology Mission on oilseeds & Pulses. In addition, it has
4 Attached offices and 22 Subordinate offices spread all over the country for
coordination with State level agencies and also for implementing Central Sector
Schemes in their respective fields. There are two Public Sector Undertakings,
Six Autonomous Bodies and eleven National level Cooperative Organizations with
the Department.
TOP
Gross
Capital Formation in Agriculture
Though the
overall growth of Indian economy has depended much upon the performance of
agriculture, over the years, not much public investment has been made on its
development. There is a steady deceleration in public, investment in gross
capital formation in agriculture. In 1980-81, the public investment as a
percentage of gross capital formation in agriculture was 38.7 percent which
fell to 16.2% in 1996-97. During this period the share of private investment,
however, rose from 61.3% to 83.8%.
This rise is
attributed mostly to better terms of trade offered by the government to
agriculture vis-a-vis industry. The fall in public sector investment is
attributed to increase in current expenditure to meet higher subsidies on food,
fertilizers, electricity, irrigation, credit and other r farm inputs rather
than creating assets. In recent years public expenditure on maintenance of
existing irrigation projects has gone up and investment on new projects has
fallen. Many of the projects started in early 1980's are still awaiting
completion because of cost overruns and non-availabilty of necessary timely
funds.
In the 8th plan
it was proposed to raise the investment in agriculture 10 18.7% if the total
plan outlay, but the actual investment turned out to be about 10-11% only.
TOP
Growth
in Foodgrain Production
The foodgrain
production in the 1950s rose in India because of expansion in area. In the
1960s, the growth rate was very poor which resulted in large scale imports. The
development, production and use of better seeds increased the productivity of
wheat in 1970s and rice in 1980s. The eighties was also a period of green
revolution which enabled India to become self-sufficient in foodgrain
production and even a marginal exporter. In the Nineties, however, the annual
growth rate in production has fallen to 1.66 per cent from 3.54 per cent
recorded in the eighties.This is a matter of serious concern for the country as
this growth rate is just matching the annual growth rate of population and 40
percent of the population in the country is still living below the poverty
line.
The production of
foodgrains in the country fell to 192.4 million tonnes in 1997-98 from 199.4
million tonnes in 1996-97.The production of wheat dropped by 3.5 million tonnes
and coarse cereals by 3 million tonnes. The kharif 1998-99 crop was also no
better. However, the 1998-99 Rabi crop is expected to be good with a 5.2
million tonnes higher foodgrain output expected from it. The crop is estimated
at 96.5 million tonnes.
|
Gross Capital
Formation in Agriculture (At 1993-94 prices in Rs. Crores)
|
|
Year
|
Gross Capital
Formation
|
Per Cent Share
|
|
Public
|
Private
|
Total
|
Public
|
Private
|
|
1993-94
|
4468
|
11377
|
15845
|
28.2
|
71.8
|
|
1994-95
|
4970
|
13244
|
18214
|
27.3
|
72.7
|
|
1995-96
|
4776
|
15168
|
19944
|
23.9
|
76.1
|
|
1996-97
|
4347
|
15555
|
19902
|
21.8
|
78.2
|
|
1997-98
|
4416
|
16579
|
20995
|
21.0
|
79.0
|
|
Annual Growth in
Foodgrain Production (% per annum compounded)
|
|
Crop
|
1950-51 to
1959-60
|
1960-61 to
1969-70
|
1970-71 to
1979-80
|
1980-81 to
1989-90
|
1990-91 to
1997-98
|
|
Rice
|
3.28
|
8.05
|
1.91
|
4.29
|
1.53
|
|
Wheat
|
4.51
|
5.90
|
4.69
|
4.24
|
3.67
|
|
Coarse Grains
|
2.75
|
1.48
|
0.74
|
0.74
|
(-)0.49
|
|
All Cereals
|
3.0
|
2.51
|
2.37
|
3.63
|
1.84
|
|
Pulses
|
2.72
|
1.35
|
(-)0.54
|
2.78
|
0.76
|
|
All Foodgrains
|
3.22
|
1.72
|
2.08
|
3.54
|
1.66
|
agricultural
ministry has projected a 1998-99 ouputof foodgrains at more than 200 million
tonnes. The union government had plans to cover about 2 million farmers in the
country with a total credit of Rs. 168 crores in 1999 with'kisan cards'. It has
fixed interest rates on creditgiven to farmers through these cards at 13.26 per
cent including tax on interest on the first Rs. 2 lakhs credit and , at 6.02
percent on amounts above Rs. 2.00 lakhs.
TOP
Agriculture
In Indian Economy
|
INDIA'S EXPORTS
OF FOOD PRODUCTS
|
|
Description
|
1995-96
|
1996-97
|
1997-98
|
1998-99
|
1999-00
|
|
GDP at 1993-94
prices (Annual growth in %)
|
7.6
|
7.8
|
5.0
|
5.8
|
5.9
|
|
Total Agricultural
Production (Annual growth in %)
|
-2.7
|
9.1
|
-6.0
|
3.9
|
--
|
|
Food grains output
(In Million Tonne)
|
180.4
|
199.4
|
192.4
|
195.3
|
204.0 *
|
|
Growth Rate of
Food grains output (Annual growth in %)
|
-5.8
|
10.5
|
-3.5
|
1.5
|
--
|
TOP
Ninth
Plan Projections
According
to an earlier estimate, by the end of the Ninth Plan, the demand for foodgrains
in India is expected to rise to 220 million tonnes, 185 million tonnes for
household consumption, 27.5 million tonnes for food processing industries and
7.5 million tonnes for export. To meet this demand, the area under foodgrains
was to be raised to 120 million hectares besides affecting the usual increases
in the yield through the use of better quality seeds and effective pest and
disease control. The demand for fruits was expected to go up to 50 million
tonnes, vegetables 95 million tonnes, edible oils 10 million tonnes and sugar
17 million tonnes.
In value terms
the output of agricultural and allied products should grow at 3.52 per cent to
meet the domestic needs and to take advantage of the world market which offers
significant opportunity to earn foreign exchange through exports, the annual
growth rate should be 4.5 per cent. This would call for an investment of Rs. 2,
68,300 crores at 1996-97 prices in the Ninth Plan which is 75 per cent higher
than in the Eighth Plan.
TOP
Generation
and Transfer of Technology
A
very high priority will be accorded to evolving new location-specific and
economically viable improved varieties of agricultural and horticultural crops,
livestock species and aqua-culture as also conservation and judicious use of
germ plasma and other bio-diversity resources. The regionalization of
agricultural research, based on identified agro climatic zones, will be
accorded high priority. Application of frontier sciences like bio-technology,
remote sensing technologies, pre and post-harvest technologies, energy saving
technologies, technology for environmental protection through national research
system as well as proprietary research will be encouraged. The endeavor will be
to build a well organized efficient and result-oriented agriculture research
and education system to introduce technological change in Indian agriculture.
Upgradation of agricultural education and its orientation towards uniformity in
education standards, women empowerment, user- orientation, vocationalization
and promotion of excellence will be the hallmark of the new policy.
The research and
extension linkages will be strengthened to improve quality and effectiveness of
research and extension system. The extension system will be broad based and
revitalized. Innovative and decentralized institutional changes will be
introduced to make the extension system farmer- responsible and
farmer-accountable. Role of Krishi Vigyan Kendras (KVKs), Non-Governmental
Organizations (NGOs), Farmers Organizations, Cooperatives, corporate sector and
para-technicians in agricultural extension will be encouraged for organizing
demand driven production systems. Development of human resources through
capacity building and skill upgradation of public extension functionaries and
other extension functionaries will be accorded a high priority. The Government
will endeavor to move towards a regime of financial sustainability of extension
services through affecting in a phased manner, a more realistic cost recovery
of extension services and inputs, while simultaneously safeguarding the
interests of the poor and the vulnerable groups.
Mainstreaming
gender concerns in agriculture will receive particular attention. Appropriate
structural, functional and institutional measures will be initiated to empower
women and build their capabilities and improve their access to inputs,
technology and other farming resources.
TOP
Central
Plan Outlay
In
the 1998-99 budget, the allocation for agriculture was hiked by 58 per cent to
Rs. 2,854 crores from Rs. 1,807 crores in 1997-98 by enhancing outlays on
irrigation and agricultural credit. The outlay on watershed development
programmes was raised from Rs. 517 crores in 1997-98 to Rs. 677 crores in
1998-99. All the watershed development programmes implemented by different
ministries were proposed to be unified to make a better utilization of funds.
The allocation for accelerated irrigation programme was enhanced by Rs. 200
crores.
In 1998-99, the share capital of NABARD was raised from Rs. 1,500
crores to 2,000 crores with Rs. 100 crores contributed by the exchequerand
Rs.400 crore by the RBI. This was to enable NABARD increase its leverage and
obtain additional resources from the market to meet its credit needs for
agriculture. A sum of Rs. 264 crores was also provided for rehabilitation and
recapitalisation of regional rural banks. A provision of Rs. 60 crore was made
for technology mission on cotton, Rs. 100 crore for experimental crop insurance
scheme and Rs. 500 crores for rural infrastructure development fund of NABARD.
In the budget, the subsidy on potassium and phosphatic fertilizers was
increased, the import duty on biopesticides was reduced, excise duty on jute
products was cut, 100 per cent tax-exemption on bio-pesticide manufacturing
units was granted, duty on diesel generating sets of upto 1 0 HP was reduced
and the manufacture of agricultural implements in the small scale sector was
dereserved to improve their quality.
|
Gross Capital
Formation in Agriculture
(At 1980-81 prices in Rs. Crores)
|
|
Year
|
Gross Capital
Formation
|
Per Cent Share
|
|
Public
|
Private
|
Total
|
Public
|
Private
|
|
589
|
1079
|
1668
|
35.3
|
64.7
|
|
1960-61
|
|
1970-71
|
789
|
1969
|
2758
|
28.6
|
71.4
|
|
1980-81
|
1796
|
2840
|
4636
|
38.7
|
61.3
|
|
1990-91
|
1154
|
3440
|
4594
|
25.1
|
74.9
|
|
1991-92
|
1002
|
3727
|
4729
|
21.2
|
78.8
|
|
1992-93
|
1061
|
4311
|
5372
|
19.7
|
80.3
|
|
1993-94
|
1153
|
3885
|
5038
|
22.9
|
77.1
|
|
1994-95
|
1316
|
4949
|
6256
|
21.0
|
79.0
|
|
1995-96
|
1268
|
5693
|
6961
|
18.2
|
81.8
|
|
1996-97
|
1132
|
5867
|
6999
|
16.2
|
83.8
|
which fell to
16.2 percent in 1996-97. During this period the share of private investment,
however, rose from
61.3 per cent to 83.8 per cent.This rise is attributed mostly to better terms
of trade offered by the government to agriculture vis-a-vis industry.The fall
in public sector investment is attributed to increase in current expenditure to
meet higher subsidies on food, fertilisers, electricity, irrigation, credit and
other farm inputs rather than creating assets. In recent years public
expenditure on maintenance of existing irrigation projects has gone up and
investment on new projects has fallen. Many of the projects started in early
1980's are still awaiting, completion because of cost overruns and
non-availability of necessary timely funds. In the Eighth Plan it was proposed
to raise the investment in agriculture to 18.7 percentof the total plan outlay
but the actual investment turned out to be about 10 to 11 per cent only.
|
REGULATED MARKET
MARKET AGRICULTURAL PRODUCE
|
|
Year
|
Regulated Markets
(Nos.)
|
Commodities Under
Grading Standards (Nos.)
|
Cold Storages
|
|
(Nos.)
|
Capacity
(Mil Tonnes)
|
|
1990-91
|
6640
|
142
|
2,930
|
7.68
|
|
1991-92
|
6738
|
143
|
2,973
|
7.78
|
|
1992-93
|
6772
|
148
|
3,053
|
8.09
|
|
1993-94
|
6809
|
150
|
3,124
|
8.17
|
|
1994-95
|
6836
|
151
|
3,167
|
8.56
|
|
1995-96
|
6968
|
1533
|
3,253
|
8.73
|
|
1996-97
|
7062
|
162
|
-
|
-
|
The
government also announced a scheme to issue 'Kisan Credit Cards'to
farmers.Under the scheme the farmers will be able to obtain loans from
designated banks on the basis of their land holdings for the purchase of seeds,
Fertilizers,pesticides and any other inputs as and when they are needed.
The
scheme will be open to about 1 00 lakh farmer farlifies. The procedural details
of the scheme were to be worked out and announced by NABARD after working out
the modalities. The necessary refinance to the commercial and other banks for
the implementation of the scheme was to be provided by NABARD.
Of the
budgetary allocation of Rs. 2,854 crores in 1998-99, however, the ministry of
agriculture is expected to have spent only Rs. 1,974 crores in 1998-99 (revised
estimates). For 1999-2000, the central plan outlay for agriculture and rural
development was raised by 47 per cent over the revised estimate of 1998-99 to
Rs. 2,897 crores. The lesser expenditure in 1998-99 is attributed to long
delays in execution of work plans by states.
TOP
Agricultural
Marketing
At
present, most of the agricultural produce in the country is freely marketed
through private trade operating in organized markets/mandies. Except for
commodities whose prices are administered, viz., petroleum, coal, nitrogenous
fertilizers etc, most agricultural commodity markets operate under the normal
forces of demand and supply. In order to save the farmers from cartels of
traders and encourage farmers to undertake the cultivation of certain specific
crops (foodgrains, oilseeds, cotton, jute, tobacco, sugarcane, etc) the
government also fixes minimum support/statutory prices for some crops and makes
arrangements for their purchase on state account whenever their price fall
below the support level.
The
role of the government normally is limited to protecting the interests of
producers and consumers, only in respect of wage goods, mass consumption goods
and essential goods. The government is promoting organized marketing of
agricultural commodities in the country. To achieve this, the governments of
many states and union territories have enacted necessary legislation for
regulation of agricultural produce markets. The number of regulated markets in
the country went up from 6,640 in 1990-91 to 6,968 in 1995-96 and 7,062 in
1996-97.
The
union government has also set up a number of organizations, under the aegis of
ministry of agriculture and ministry of commerce, such as commodity boards,
cooperative federations and export promotion councils for monitoring and
boosting the production, consumption, marketing and export of various
agricultural commodities.
These
include the Commission for Agricultural Costs and. Prices (CACP) for
recommending minimum prices of certain commodities; the Food Corporation of
India Ltd. (FCI), the Cotton Corporation of India Ltd. (CCI), the Jute
Corporation of India Ltd. (JCI), the National Cooperative Development
Corporation Ltd. (NCDC), the National Cooperative Marketing Federation Ltd.
(NAFED), the National Tobacco Growers Federation Ltd. (NTGF), the Tribal
Cooperative Marketing Development Federation Ltd. (TRIFED), the National
Consumers Cooperative Federation Ltd. (NCCF), etc for procurement and
distribution of commodities; and the Tea Board, Coffee Board, Coir Board,
Rubber Board, Tobacco Board, Spices Board, Coconut Board, Central Silk Board,
the National Dairy Development Board (NDDB), State Trading Corporation (STC),
Agricultural & Processed Foods Export Development Authority (APEDA), Marine
Products Export Development Authority (MPEDA), the Indian Silk Export Promotion
Council, the Cashewnuts Export Promotion Council of India (CEPC), etc for
promotion of production and exports of specific commodities.
The
National Cooperative Union of India is an apex institution for cooperative
Movement covering all types of cooperatives, It promotes and develops
cooperatives by assisting groups of people in forming cooperatives. It also
imparts cooperative education and organizes training programmes for managers
and executives of cooperatives.
|
SHARE OF EXPORT
OF AGRICULTURALPRODUCTS IN TOTAL EXPORTS(Rs.Crores)
|
|
Year
|
Total Exports
|
Agricultural
Exports
|
% share
|
|
1992-93
|
53,668
|
7,884
|
14.7
|
|
1993-94
|
69,751
|
13,021
|
18.7
|
|
1994-95
|
82,674
|
13,710
|
16.6
|
|
1995-96
|
1,06,353
|
21,136
|
19.8
|
|
1996-97
|
1,18,817
|
24,241
|
20.4
|
|
1997-98
|
1,26,290
|
23,690
|
18.8
|
NAFED
is an apex cooperative marketing organization involved in procurement,
distribution, export and import of select agricultural commodities. It is a
central nodal agency of the government for undertaking price support operations
for nonperishable commodities like pulses and oilseeds and for market
intervention operations for perishable commodities like potatoes, onions,
grapes, kinno, oranges, apples, eggs, chillies, black pepper, etc. During
Jan'97-Feb'98, NAFED undertook market intervention in 13 commodities.
Most
of the states in the country have set up Agricultural Produce Marketing Boards
and Civil Supplies Corporations to deal with marketing and distribution of
various commodities which are produced or sold in specific regions in the
country. The union government provides financial and technical assistance to
states in creation of infrastructural facilities in the markets including
setting up of godowns in rural areas. Till the end of March 1997, grading
standards have been prepared for 162 agricultural and allied commodities under
the Agriculture Produce (Grading and Marketing) Act, 1937.
In
the Ninth Plan period, the Tamil Nadu government is expected to spend Rs. 100
crores on extension of agricultural marketing facilities in the state.
The
Maharashtra State Agricultural Marketing Board has plans to invest Rs. 514
crores in setting up of market yards and godowns for agricultural and
floricultural produce in the Ninth Plan period. The state government has
prepared a master plan for the integrated development of 1,930 markets
including 405 rural markets in the state. For funding the development of 723
regulated markets, it is proposed to obtain 50 per cent of the funds from the
union government at 12 per cent interest repayable in 14 years after a
moratorium of two years, 25 per cent will be provided by the state government
and 25 per cent by the Agriculture Produce Marketing Committee.
|
INDIA'S EXPORT OF
SOME AGRO PRODUCTS DURING APRIL-SEPTEMBER,1998($Million)
|
|
Description
|
Exports in
April-September
|
|
1997
|
1998
|
% Growth
|
|
Tea
|
189.41
|
253.28
|
33.72
|
|
Coffee
|
252.62
|
267.30
|
5.81
|
|
Rice
|
399.38
|
627.14
|
57.03
|
|
Wheat
|
0.10
|
0.37
|
271.90
|
|
Other Cereals
|
2.12
|
0.68
|
-67.96
|
|
Pulses
|
31.36
|
30.05
|
-5.00
|
|
Raw Tobacco
|
106.09
|
88.10
|
-16.96
|
|
Spices
|
203.36
|
192.60
|
-5.29
|
|
Cashewnuts &
CNSL
|
210.07
|
189.30
|
-9.89
|
|
Sesame,Nigerseed
|
38.95
|
24.24
|
-37.76
|
|
Groundnut
|
68.14
|
11.37
|
-83.31
|
|
Oil Meals
|
252.54
|
157.85
|
-37.50
|
|
Guar gum and Meal
|
67.14
|
100.07
|
49.05
|
|
Castor Oil
|
86.63
|
101.46
|
17.11
|
|
Shellac
|
6.29
|
4.48
|
-28.82
|
|
Sugar and
Mollasses
|
58.49
|
1.06
|
-98.19
|
|
Processed Foods,
Vegetables
|
75.58
|
67.01
|
11.33
|
|
Fruits and
Vegetable Seeds
|
6.85
|
9.18
|
19.48
|
|
Floriculture
|
12.27
|
11.73
|
-4.36
|
|
Other processed
Foods
|
109.30
|
88.10
|
-19.40
|
|
Meat and Meat
Products
|
15.09
|
9.04
|
-40.06
|
|
Poultry and Dairy
Products
|
11.99
|
7.33
|
-38.86
|
|
Spirits and
Beverages
|
539.49
|
511.99
|
-5.10
|
|
Marine Products
|
180.88
|
31.54
|
-82.56
|
|
Raw Cotton
|
73.18
|
83.59
|
14.22
|
|
Natural Silk
Textiles
|
51.70
|
41.91
|
-18.94
|
|
Wool and Woolen
Products
|
35.29
|
36.67
|
3.90
|
|
Coir and Coir
Products
|
77.66
|
51.58
|
-33.59
|
|
Jute Products
|
9.82
|
7.48
|
-23.81
|
The Kerala
government has undertaken a Rs. 72 crore EU-assisted project to set up 6
wholesale markets specifically for marketing of Fruits and Vegetables
agricultural produce. Of these 3 will be in urban areas and 3 in In India more
than 100 million tonnes of fruits and vegetable rural areas. The urban areas
identified include Anayara in are produced and marketed through a number of
rural, assisted project to set up 6 wholesale markets specifically for
marketing of Fruits and Vegetables agricultural produce. Of these 3 will be in
urban areas and 3 in In India more than 100 million tonnes of fruits and
vegetable rural areas. The urban areas identified include Anayara in
Thiruvananthapuram, Muvattapuzha in Ernakulam and S Batheri in Wayanad. In
recent years because of new p options coming up in various states with high
yielding pi materials, the monopoly of Kerala is being lost in the case number
of crops like coconut, rubber, pepper, ginger, mom, cashewnut, etc.
At
present about 60 per cent of the net sown area in Kerala is under rubber and
coconut. The fall in their prices in 1998 affected the lives of nearly
two-third of its agricultural workforce.
TOP
Marketing
of Fruit and Vegetables
In
India more than 100 million tonnes of fruits and vegetables are produced and
marketed through a number of rural,wholesale and terminal markets every year.
The market reforms in agricultural commodities have so far been limited mainly
to foodgrains only. The marketing of fruits and vegetables has so far received
little attention of the government. At present, there are a large number of
intermediaries in this trade between the producer and consumer which has
resulted in a wide gap in the producer and consumer price of these commodities
which needs to be reduced to enable farmers receive remunerative prices for
their produce and boost their production and consumption in the country.
|
INDIA'S EXPORTS
OF FOOD PRODUCTS
|
|
Description
|
1991-92
|
1992-93
|
1993-94
|
1994-95
|
1995-96
|
1996-97
|
|
Processed foods
and vegetables
|
194
|
263
|
318
|
409
|
479
|
460
|
|
Animal Products
|
248
|
314
|
345
|
448
|
686
|
814
|
|
Other Processed
Foods
|
248
|
285
|
512
|
411
|
1043
|
1642
|
|
Cereal Products
|
755
|
898
|
1280
|
1280
|
4952
|
3879
|
|
Marine Products
|
1376
|
1767
|
2504
|
3576
|
3501
|
4121
|
|
Total
|
2821
|
3527
|
4960
|
6124
|
10661
|
10916
|
The union
government has not made any common regulation for the marketing of fruits and
vegetables applicable all over the country, however, some of the state
governments have enacted laws and Acts. The marketing of fruits and vegetables
is under regulation in Rajasthan, Maharashtra, Bihar, Delhi, Uttar Pradesh and
Karnataka and outside any regulatory purview in Tamil Nadu, West Bengal and
Jammu & Kashmir.
At present, the
wholesale markets for fruits and vegetables o a country-wide basis are
concentrated in 10 large cities viz Delhi, Calcutta, Bangalore, Chennai,
Mumbai, Jaipur, Nagpur Vijayawada, Lucknow and Varanasi. These cities account
for the arrival of 75 per cent of vegetables marketed in major urban areas in
India. Delhi, Calcutta, Mumbai and Pune alone account for the arrival of 55 per
cent of vegetables. Delhi and Calcutta account for transit trade in 40 per cent
fruits and 13 per cent vegetables. Delhi, Calcutta and Mumbai receive 59 per
cent of total fruits and 46 per cent of vegetables.
In a study
carried out in 1998, it was found that cities with more than 20 lakh population
account for transit trade in 66 per cent of fruits and vegetables. In 48 cities
with a population of more than 5 lakhs (as per 1981 census), there were 102
fruit and vegetable markets of which 54 were regulated. The wholesale trade in
fruits takes place in 65 markets and in vegetables in 81 markets. Each market
on an average serves a population of about 7 lakhs. The prices in these
markets, however, are governed by demand and supply principles with the
regulating market committee not playing any role in price correction or
arresting wide price fluctuations.
TOP
Futures
Trading
In continuation
of the process of economic reforms, resumption of 'Futures Trading' is
receiving a renewed focus in the country. The Kabra Committee, in its 1994
report, had recommended the allowing of futures trading in 17 commodities
including kapas; raw jute and jute goods; seed, oil and oilcakes of groundnut,
rapeseed/mustard, cottonseed, sesame, sunflower, copra and soyabean; ricebran
oil; linseed; onions; and silver.
Futures trading
in gur, potato, raw jute, turmeric, pepper and castorseed has been going on
since long in the country. More recently the union government has allowed
futures trading in coffee, castor oil, jute sacking and cotton and has also
permitted futures trading in palmolein, oilseeds and oilmeals subject to
completion of certain formalities. The futures trading in cotton was resumed
after a gap of about 32 years at the Cotton Exchange Building in Mumbai on
December 6, 1998. An international futures exchange in pepper has started
operating in the country and for castor was expected to begin in May 1999 in
Navi Mumbai.
|
INDIA'S EXPORT OF
SOME AGRO PRODUCTS DURING APRIL-DECEMBER,1998($Million)
|
|
Description
|
Exports in
Apr.-Sept.
|
|
1997
|
1998
|
% Growth
|
| Tea
|
313.24
|
390.05
|
24.52
|
| Coffee |
319.24
|
307.37
|
-3.72
|
| Rice |
580.51
|
1,092.25
|
88.15
|
| Wheat |
0.11
|
0.64
|
482.32
|
| Spices |
2.12
|
0.68
|
-67.96
|
| Tobacco |
106.09
|
88.10
|
-16.96
|
| Sugar and Mollasses |
68.49
|
3.54
|
-94.83
|
| Fresh fruits and vegetables |
108.30
|
91.53
|
-15.48
|
| Marine Products |
935.05
|
802.98
|
-14.12
|
| Cotton (raw and waste) |
31.63
|
30.05
|
-5.00
|
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|
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Insurance
In order to
provide financial support to farmers in the event of crop failure due to
drought, flood, etc and to restore the credit eligibility for the next crop
season, a Comprehensive Crop Insurance Scheme (CCIS) was introduced in April
1985 which covered wheat, paddy, millets, oilseeds and pulses. Under the
scheme, half of the premium payable by small and marginal farmers is subsidised
equally by the central and the state governments and indemnity claims are
shared by the union government and state governments in the ratio of 2:1. The
premium is charged at the rate of 2 per cent for rice, wheat and millet and 1
per cent for pulses and oilseeds.
The participation
in the scheme is voluntary and the states are free to opt or not to opt for the
scheme. The scheme covers only those farmers who avail crop loans from
cooperative credit institutions, commercial banks and regional rural banks for
producing rice, wheat, millets, oilseeds and pulses.
The sum assured
equals to the crop loan disbursed subject to a maximum of Rs. 10,000 per
farmer. The scheme also covers indemnity towards loss in yield. If the actual
average yield in any area covered by this scheme fails short of the guaranteed
yield, the farmer is entitled to an indemnity to the extent of shortfall in
yield viz-a-viz the guaranteed yield.
The scheme is
being administered by the General Insurance Corporation of India. Since the
inception of the scheme in 1985 to Rabi 1996-97 season about 5.82 crore farmers
were covered under the scheme and claims of Rs. 1,523 crore were paid against
premium collections of mere Rs. 269 crore. Till the end of Rabi 1997-98 season
the scheme covered 6.45 crore farmers and claims of Rs. 1,623 crore were paid
against a premium collection of only Rs. 313 crores.
The scheme has
proved its unviability and the ministry of on some alternate models for
agriculture has been working quite some time. In 1998, the union government ,
formulated a ' Modified Crop Insurance Scheme (MCCIS)' which received an
in-principle clearance for introduction from Kharif 1999 by the Cabinet
Committee on Economic Affairs in November 1998.
In 1997, an
'Experimental Crop Insurance Scheme (ECIS)' was formulated for implementation
in 24 districts for rabi 1997-98 crop which was to cover besides loanee
farmers, non-loanee small and marginal farmers also. However, the scheme could
be implemented in only 14 districts in 5 States and covered only non-loanee
farmers. All the premium payable was subsidized by the central and the state
governments in the ratio of 4:1 and the risks and indemnities were also shared
by them in 4:1 ratio. About 4.78 lakh farmers were covered for a sum insured of
Rs. 172 crores. This scheme also proved a failure as the premium collected was
only 2.86 crores and claims paid amounted to Rs. 39.78 crores. From kharif
1998-99, this scheme has been discontinued. In the interim, the CCIS has
replaced the ECIS in those districts where the latter is discontinued.
The CCIS is being
implemented, at present, in 16 states and union territories. Punjab, Haryana
and western Uttar Pradesh have not opted it. The CCIS does not cover commercial
crops like sugarcane, cotton, onions, potato, etc. The MCCIS, whose modalities
are still being worked out may cover these crops also. There is a proposal to
set up a corporation to be called 'Agricultural Insurance Corporation of India'
' as a subsidiary of the General Insurance Corporation to manage its
operations.
Under the MMCCIS,
the farmers may have to pay premium as against the earlier schemes in which
even the premium was being paid by the government. For marginal farmers there
will be concessions in premium charges. The minimum support price will take
care of the premium charges borne by farmers. To start with the MMCCIS will be
introduced in select districts and will cover only foodgrains. Later on it will
be extended to all crops including oilseeds, horticulture, etc and all sorts of
agricultural activities like fisheries, animal husbandry, sericulture, etc. The
scheme will be compulsory for farmers who avail loans from any government
institution and optional for others.
Since past few
years, the union government is also implementing a Livestock Insurance scheme,
under which an animal is insured for its present market value or market value
at the time of death whichever is lower. In 1997-98, about 16.5 million animals
were insured under this scheme . A sum of Rs. 137.40 crore was received as
premium and claims of Rs. 93.32 crore were disbursed by GIC which is
implementing this scheme.
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Agricultural
Exports
The commerce
ministry has identified 10 agricultural products for sustainable export
promotion. These are : rice, wheat products, coarse grains, spices, cashew,
oilmeals, sugar, horticultural products, floriculture products and processed
foods. The ministry plans to have a consistent policy for the export of rice,
both basmati and non-basmati, wheat products and pulses. The rice meant for
export may be exempted from levy obligation. While the imports and exports of
rice and pulses can be freed, special efforts may be made to cultivate a
sustainable export market for tea, coffee, vegetables and oilmeals. In the past
few years, while the exports of some traditional items from India has fallen,
that of some new products has started going up.
lndia's agro
exports in 1997-98 are expected to have fallen to Rs. 23,690 crores from Rs.
24,241 crores in 1996-97. In 1997-98, the exports comprised cereals and pulses
Rs. 7,520 crores; oilseeds, oils and oilmeals Rs. 4,315 crores; plantation
crops (tea, coffee, cashew, tobacco and spices) Rs. 7,292 crores; sugar,
molasses, jaggery and alcoholic drinks Rs. 1,695 crores; and fruits, vegetables
and other processed foods, Rs. 4,020 crores.
Now there is a
worldwide trend towards promoting agricultural exports in almost all the
countries where agro-climatic conditions favour cultivation of at least some
crops. In fact, the economies of many countries in the world are very much
dependent upon agricultural exports in similar lines as that of most Arab
countries on the exports of crude and petroleum products. Even in an advanced
country like USA which has much more to offer to the world in terms of
engineering goods, computers and chemicals, every one out of three acres of
land is being dedicated to raise crops for exports.
TOP
Quality
Aspects
The European
Commission is bringing some more stricter quality legislations on imported food
products including animal feeds specially pertaining to permissible levels of
aflatoxin, hexane and pesticide residues and other harmful foreign material
that enter agricultural produce during post-harvest handling and processing
which is expected to affect India's exports,particularly
groundnut,cashewnuts,walnuts,pepper,chillies,oilcakes and marine products.
Aflatoxins are
very serious problem for many agricultural commodities including
maize,chillies,sesame and groundnut. They are potent
carcinogenic,immuno-suppressive bio-chemical produced when the aspergillus
fungus invades certain agricultural commodities.
The products
affected include HPS groundnuts,extractions, spice oils,essential oils,derived
from flowers,etc. besides others. The EC intends to limit the levels of hexane
in cocoa butter fat and oil to 1 ppm, in defatted protein products and flours
to 10 ppm, defatted soya products to 30 ppm and cereal germs to 5 ppm.In a
directive if October 27,1997, the EC had reduced the permissible levels of
residues in oil extractions of various flowers and spices. The products cover
exotic oils derived from jasmine and tuberose, bud oils like cinnamon bark and
turmeric root,and seed oils like ajwain, star
anise,cardamom,cumin,coriander,fennel,fenugreek,kalongi/nigella,etc.
In HPS groundnuts
the aflatoxin level has been brought down to 10ppb in raw nuts and 4 ppb in
consumer-ready processed nuts from 10-30 ppb allowed earlier. The levels of
aflatoxin in foodstuffs develop mostly when moist unsterilized agricultural
products, whether raw or processed, are stored in confined space with improper
air ventilation.
The aflatoxin
level in HPS groundnut ranges from a low of 10 to over 130-150 and is linked to
the quality of groundnuts. The lower count groundnut generally is of better
quality as it is picked by workers adept at this job. The EU has set a maximum
level of B1 aflatoxin at 5ppb for nuts not meant for direct consumption and at
2 ppb for nuts meant for direct consumption.Even the traders in EU have
protested against this as it would increase the price of imported nuts
substantially.Earlier India had set the B1 level at 30ppb and many countries
including China,USA,Vietnam and Argentina at 20ppb.
The union
government is likely to make the implementation of Hazard Analysis and Critical
Control Point(HACCP)mandatory for the food sector.It has already asked the
Bureau of Indian Standards(BIS) to identify the areas. The BIS is likely to
recommend perishable foods,dairy products,marine products,spices,meat
products,poultry products and processed food for mandatory implementation of
HACCP.The BIS has already prepared and brought out a specification of
IS:15000-1998 which is based on HACCP guidelines and recommendations made by
the Food Hygiene Committee of FAO/WHO Codex Alimentarius Commission.
TOP
Research
and Extension
The Indian
Council of Agricultural Research is an apex institution responsible for the
promotion of agricultural research and education in India.Through a network of
research institutes, research stations and state level agricultural
universities in various parts of the country it has done commendable work in
evolving, testing and propagating new farm technologies
ICAR has
initiated research on almost all the economically important crops, besides soil
sciences, horticulture, animal husbandry, fisheries and agricultural extension.
It has played a major role in ushering in the green revolution in the 1970's.
Today India is one of the 8 gene centers in the world having three Bureaux
dealing with plants, animals and fisheries. ICAR is preparing a 25 year
perspective plan to be implemented on a 5-yearly basis with the Master Plan
kept 25 years ahead.
However, the
country's investment in agricultural research is stagnating at 0.32 per cent of
total agricultural GDP for the last two decades. This does not compare well
with 0.56 per cent investment being made by 51 developing countries and an
average of 2 per cent by the developed countries. The parliamentary standing
committee on agriculture has recommended that the investment in agricultural
research should be targeted to reach a level of 1 per cent on the total
agricultural GDP.
In very recent
years, the private sector has also started playing an important role in R&D
particularly in the development of high yielding varieties of seeds and
propagation of tissue culture plantlets, and in training of farmers by
extension work especially the contract farming farmers.
The agriculture
ministry has set up a national institute of agricultural extension management,
4 extension education training institutes and 15 advanced training institutes
in various regions for the training of extension personnel at various levels.
The ICAR has also
set up Krishi Vigyan Kedras (KVK's) in the country for the training of farmers,
farm women and rural youths. These kendras hold frontline demonstrations of
latest developed technologies for farmers and extension workers and also
conduct on-farm research to further improve the technology developed to make it
more suitable for the agro-climatic conditions in specific regions in which
they are located in the country. These kendras work under collaborative
participation of scientists, demonstrators, extension workers and farmers.
Since 1974, when
the first KVK was established in Pondicherry, 261 KVKs have been established
all over the country so far. The KVKs have organized more than 1 lakh training
programmes for farmers, In the Ninth Plan period, it is proposed to set up 239
more Krishi Vigyan Kendras. This is a part of the programme to set up 500 KVKs
all over the country. There are plans to upgrade 53 research stations, set up
under the National Agricultural Research Project, affiliated to various
agricultural universities into KVKs.
The ICAR also has
plans to set up 80 agricultural technology information centers at agricultural
universities and its'research institutes for direct interaction with individual
farmers in solving their problems and for supply of literature on modern
technology and practices.The ICAR would also cover 104 KVKs under an
Agricultural Research Information Services network which will allow ready
access to these KVKs all the latest research information on various crops
through internet on computers. The union government has identified 26 districts
in the country for setting up Agricultural Technology Management Agencies which
will coordinate with state agricultural departments, universities and KVKs in
providing technical services to farmers.
In the Ninth
Plan, there was a proposal to allocate Rs. 2,500 crores for agricultural
research and education. The outlay for agriculture education is set to be
doubled to Rs. 280 crores during the Ninth Plan and a one-time catch-up grant
of Rs. 200 crores is expected to be provided to improve the infrastructure
facilities in existing agricultural colleges.
ICAR has
earmarked Rs. 2,500 crores for research for developing high-yielding cereal
crops and oilseeds through various agricultural research stations in the
country. The objective is to double the output of all crops and cereals in the
next 10 years.
Since past
several years, many of the large fertilizer companies in the public sector like
IFFCO, KRIBHCO, NFL, GSFC, RCFL, etc and some companies in the private
sectoralso like Nagaduna Fertilizers and ]Indo Gulf Fertilizers,have been
providing extension education to farmers in cultivation of foodgrains with the
object of selling their fertilizers by putting up demonstration plots. Recently
some private sector organizations have also started taking interest in
extension work. Tata Chemicals and Railis India, for instance, have plans to
set up 40 'Tata Kisan Kendras' in the country to disseminate latest information
on advancements in seeds, fertilizers, pesticide s and bio-techology to farmers
in Uttar Pradesh, Punjab and Haryana.
The VMA Oilseeds
Research & Development Institute (VORDI), promoted by the Vanaspati
Manufacturers' Association, has also started providing extension education to
farmers in North India in the cultivation of oilseeds.
The Defense Food
Research Laboratory, Mysore has developed technologies for preparation of
shelf-stable foods at ambient temperatures from fruits, vegetables, cereals and
meats, though they have not been commercialized so far. The items include
ready-to-eat chapaties, pineapple and mango slices, combination preserved meat
and dairy products.
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