Agriculture

Importance of Agriculture in India

The following points emphasizes the importance of agriculture in Indian Economy(i) Share of Agriculture in National Income Agriculture has got a prime role in Indian economy. Though the share of agriculture in national income has come down. Since the inception of planning era in the economy but still it has a substantial share in GDP. The contributory share of agriculture in Gross Domestic Product was 55.4% in 1950-51, 52% in 1960-61 and is at present reduced to only 24.5%. 24.5%. (ii) Important Contribution to Employment Agriculture sector, at present, provides livelihood to about 64% of the labour force. (iii) Important Source of Industrial Development Various important industries in India find their raw material from agriculture sector, cotton and jute textile industries, sugar, vanaspati, industries etc. are directly dependent on agriculture, Handloom, spinning, oil milling, rice thrashing etc. are various small scale and cottage industries which are dependent on agriculture sector for their raw material. This highlights the importance of agriculture in industrial development of the nation. (iv) Importance in International Trade Indias foreign trade is deeply associated with agriculture sector. Value of agriculture exports to total exports of the country has been ranging between 15 to 20%. Besides, goods made with the raw material of agriculture sector also contributes about 20% in Indian exports. In other words, agriculture and its related goods contribute about 38% in total exports of the country.

Progress of Agriculture in Planning Era

The century ended with the countries food grains output crossing 200 million tones. Food grain production in 1999-2000 was 208.9 million tonnes, which witnesses the record production. The estimated production of rice in 2000-2001 at 86.8 million tones is 2.7 million tones lower than 1999-2000 production of 87.5 million tones. The estimated; production of coarse cereals is 29.9 million tones as against 30.5 million tones produced last year, a decline by about 0.6 million tones compared to 1999-2000. The production pulse during 2000-2001 is expected to be 12.3 million tones as against 13.4 million tones produced last year. The estimated food grains output of 199 million tones in 2000-2001 would be lower by about 10 million tones representing a decline of 4.8% over the preceding year. Overall, the growth in 1999-2000 of agriculture and allied sectors is likely to be 0.9% compared to a growth of 0.7% last year.

The oilseeds production in 2000-2001 is expected to be 18.6 million tones compared to 20.9 million tones produced last year. The overall production of cotton is likely to be marginally higher at 13.2 million bales in 2000-2001 compared to 11.6 million bales last year.

Minimum Support Price of Agriculture Products

The Government announces the Minimum support Price (MSP) for various important agriculture crops. The main objectives of announcing MSP are: 1. To prevent fall in prices in the situation of over production. Table 1 Agriculture Production* (Million Tones/Bales) Crop
Rice Wheat Coarse cereals Pulses Total Foodgrains Kharif Foddgrains Rabi Foodgrains Oil Seeds Sugarcane Cotton(1) Jute and Mesta (2)

1950-51 20.6 6.5 13.5 8.4 50.8 NA NA 5.2 57.1 3.0 3.3

1994-95 81.8 65.8 29.9 14.1 191.5 101.1 90.4 21.3 275.5 11.9 9.1

1995-96 77.0 62.4 29.0 12.3 180.4 95.1 85.3 22.1 281.1 12.9 8.8

1996-97 81.7 69.4 34.1 14.2 199.4 103.4 95.5 24.4 277.6 14.2 11.1

1997-98 82.5 66.3 30.4 13.0 192.3 101.6 90.7 21.3 279.5 10.9 11.0

1998-99 86.0 71.3 31.2 14.9 203.5 102.8 100.7 24.7 288.7 12.3 9.8

1999-2000 2000-2001 (Estimated) 89.5 86.8 75.6 70.0 30.5 29.9 13.1 12.3 208.9 199.0 104.9 102.7 104.0 96.3 20.9 18.6 299.2 300.6 11.6 13.2 10.5 9.9

(1) 170 kg per bales.. (2) 180kg per bales * Economic survey 2000-2001. Table 2 Oilseeds Production in Different Years Oilseeds Groundnut Rapeseed/Mustard Soyabean Other Six oilseeds Total Nine Oilseeds 1994-95 8.1 5.7 3.9 3.6 27.3 1995-96 7.6 6.0 5.1 3.4 22.1 1996-97 9.0 7.0 5.2 3.8 25.0 1997-98 7.4 4.7 6.5 2.8 21.3 1998-99 9.0 5.7 7.1 2.9 24.7 (Million Tonnes) 19992000-2001 2000 (Estimated) 5.3 6.2 6.0 4.3 6.8 5.2 2.8 2.9 20.9 18.6

Table 3 Support/Procurement Prices of Agriculture Goods in India (On the basis of crop year) (Rs./ Quintal) Sl. No. 1. 2. 3. 4. 5. 6. 7. Item Price Category Procurement Price ,, ,, ,, ,, ,, Statutory Price ,, ,, ,, ,, ,, 1998-99 440 470 390 960 960 960 1440 1650 1040 1060 705 795 990 850 1999-2000 490 520 415 1105 1105 1105 1575 1775 1155 1155 755 845 -915 2000-01* 510 540 445 1200 1200 1200 1625 1825 1220 1170 775 865 -1025

Paddy (General) Fine Paddy Cereals Arhar (Pulse) Moong (Puls) Urd (Pulse) Cotton F-414 and H-777 H-4 8. Groundnut 9. Sunflower seeds 10. Soyabean (Black) 11. Soyabean (Yellow) 12. Safflower 13. Niger Seed *Announced on 29.8.2000

2. To protect the interest of farmers by ensuring them a minimum price for their crops in the situation of a price fall in the market. Minimum support price announced by the government is that price at which government is ready to purchase the crop from the farmers directly if crop price becomes lower to MSP. As a result, market price of the crop never comes down from the level of MSP. This minimum price security gives incentives to farmers to increase their production. These minimum support prices of various crops are announced on the basis of recommendations made by Agriculture Cost and Price Commission (ACPC) which takes in to consideration the inputs costs and favorable returns to the farmers while recommending MSP. New Support Prices for Rabi-Crops Marketing Year 2001-2002 (Announced on March 24, 2001) Rs./ Quintal 1999-2000 2000-2001 2001-2002 Wheat Barley Gram Rapeseed/ Mustard 550 385 895 1000 580 430 1015 1100 610 500 1100 1200

Food grains Procurement and Stocks

Foodgrains procurement by the Government serves the dual purpose of providing support prices to the farmers and of building up public stocks of Foodgrains. Procurement operations are carried out by the FCI and the state agencies designated by State Government Procurement prices are based on support prices recommended by CACP (Commissions for Agricultural Costs & Prices.) Food stocks are maintained by the Central Government for 3 purposes: (i) (ii) (iii) Meeting the prescribed minimum buffer stock norms for food security For monthly release of Foodgrains for supply through PDS (Public Distribution System). For market intervention to augment supply so as to help moderate the open market prices. Buffer Stock Norms (Million Tonnes) January April July October 8.4 4.0 14.3 11.6 8.4 11.8 10.0 6.5 16.8 15.8 24.3 18.1

Food grain Wheat Rice Total

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

Indias Exports and Imports of Agricultural Products

Exports Amount of Amount of Ag. Export Total Countrys Export 6828 33470 6594 35006 6014 33218 5475 37599 % of Ag. to Total Export 20.4 18.8 18.1 14.6 (Million Dollars) Imports Amount of Amount of % of Ag. Ag. Total to Total Import Countrys Export Import 1428.0 1846.7 2918.8 2624.1 39132.9 41484.5 42388.7 47212.1 3.7 4.5 6.9 5.6

Year

1996-97 1997-98 1998-99 1999-2000

Major Crops and their seasons

The Indian crops can be divided into two major group 1) Kharif Crop This crop is sown in the month of July and harvested in October every year. Kharif crop includes- Rice, Jowar, Bajra, Maize, Cotton, Sugarcane, Seasamum, soyabean, Groundnut. 2) Ravi Crop This crop is sown in October last and harvsted in March/April every year. Ravi crop includes Wheat, Jowar, Gram, Tur, Rapeseed, Mustard. 3) Zayad Crop In some parts of the country a crop, known as Zayad crop is sown during March to June every year. Zayad crops include Melon, Watermelon, Vegetables, Cucumber, etc. Table 4 Production of Sugarcane and Sugar Year 1950-51 1970-71 1980-81 1990-91 1995-96 1998-99 1999-2000 2000-2001 (Estimated) Area Million Hectares 1.7 2.6 2.7 3.7 4.1 4.1 4.2 -Sugarcane Production Million Tonnes 57.1 126.4 154.3 241.1 281.1 288.7 299.2 300.6 Yield Tones/ Hectare 33 48 58 65 68 71 71 -Sugar Production Laky Tonnes 11 30 37 51 121 155 165 --

November.

Table 5 Production, Consumption and Export of Tea (Million Kgs) Year Production Domestic Export consumption 1993 760.8 560 175.3 1994 743.8 580 150.7 1995 753.9 595 163.7 1996 780.0 618 161.7 1997 810.6 640 203.0 1998 870.4 645 210.3 1999 806.0 Producing 655States 190.0 Major 2000* 784.0 N.A. 178.0 (i) Foodgrains Uttar Pradesh, Punjab, Madhya Pradesh and West Bengal. (ii) Wheat - Uttar Pradesh, Punjab, Haryana, Madhya Pradesh (iii) Rice West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab (iv) Coarse Cereals Maharashtra, Karnataka, Rajasthan, Uttar Pradesh (v) Pulses Madhya Pradesh, Uttar Pradesh, Rajasthan and Maharashtra

* January

Commercial Crops
Commercial crops are those crops which are produced for trade purpose and earning money and not for self-consumption by the farmers. These commercial crops include (i) Oilseeds Crops Groundnut, Mustard, Sesamum, Rapeseed, Linseed, Castor, Sunflower, Nigerseed and Soyabean. (ii) Sugar Crops Sugarcane and Beeat. (iii) Fibre Crops Jute, Mesta, Sunnhemp and Cotton. (iv) Narcotic Crops Tobacco. (v) Beverage Crops Tea, Coffee.

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

TRIFED
The Government established TRIFED (Tribal Co-operative Marketing Development Federation of India Ltd.) in August 1987. The basic aim in TRIFED was to save tribals from exploitation by private traders and to offer them remunerative prices for their minor forest produce and surplus agriculture products. TRIFED started functioning since April 1988. TRIFEDhas also been declared an important agency for collecting. Processing, storing and developing of oil seeds products. TRIFED plays a role of an agent of FCI for Government parchase of wheat and rice. It is also an agent of agriculture and co-operation department for Government purchase of cereals, pulses and oil seeds. Agriculture Ministry gives oil to TRIFED fro compensating loss incurred due to price fluctuations

NAFED
NAFED (National Agricultural Co-operative Marketing Federation of India Ltd.) has been established in co-operative sector at national level for marketing of agriculture products.

Storing Facilities for Agriculture Products

To promote storing facilities for agriculture products, National Cooperative Development & Warehousing Board (1956) and Central Warehousing Corporation (1957) were established. State Warehousing Corporations were also established. Presently FCI has its own warehouses.

According to the information sent to the center by the states, area under forests which was 40.48 million hectares in 1950-51, became 68.02 million hectares in 1991-92. According to the report of Environment and Forest Ministry, about 19.45% of total land of the country was covered with forests. Land utilization pattern in India is shown in Table 6.

Table 6 Land Utilization Pattern (In Thousand Hectare) Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 1950-51 284315 40480 47517 6675 22943 118746 13147 131893 Year 1993-94 304863 68421 41010 11176 14468 142095 44325 186420 1995-96 304732 68830 NA NA NA NA 14220 NA

Total Geographical Area Area under forests Barren land not available for cultivation Permanent Pasture and Grazing land Waste land Net sown area Area sown more than once Total cropped area

Backwardness and Low Productivity of Agriculture

Agriculture sector presently provides livelihood to about 64% of the labour force and contributes nearly 24.5% of GDP. In other words, 36% of working population engaged in non-agricultural activities contributes 72.6 of GDP. This contradiction clearly states that per labour productivity in agriculture sector is approximately half than that in non-agriculture sector. It is a clear cut indication of backwardness of Indian agriculture. Per hectare productivity in India for all crops is comparatively low as compared with that of other countries. Per hectare productivity in India for major crops has been shown in Table 7. Table 7 Per Hectare Productivity in India Crop/Item Per hectare production (in Kg.) 1998-99 1999-2000 Total Foodgrains 1571 1697 Coreals 1778 1919 Pulses 634 630 Rice (Kharif) 1619 1886 Rice (Rabi) 3073 2968 Rice (Total) 1747 1990 Wheat 2590 2755 Maize 1797 1785 Oil seeds (Kharif) 992 809 Oil seeds (Rabi) 868 935 Oil seeds (Total) 944 856 Groundnut (Kaharif) 1174 665 Groundnut (Rabi) 1370 1389 Rapeseed and mustard 870 982 Sugarcane 71 71 (Tonne/ hectare) Cotton 224 226 Jute 1875 1995 Mesta 990 1078

Land Reform Programmes

Land reform programmes in India include (i) Elimination of intermediaries (ii) Tenancy Reform (iii) Determination of ceiling of holdings per family and to distribute surplus land among landless people (iv) Consolidation of holdings. The legislation for abolition of intermediaries was aimed at providing land to the tiller. Measures of tenancy reform pertain to (i) Regulation of rent. (ii) Security of tenure. (iii) Conferment of ownership on tenants. Laws for land ceiling were enforced in various States during fifties and sixties which were modified on the directives of Central Government in 1972. Legislation for ceiling on existing holdings and unit of application has been enacted in two phases. Under both the phases, 73.95 lakh acres of land was declared surplus (upto September 30, 1995) out of which 65.58 lakh acres of land was taken over by the government and 51.68 lakh acres of land was distributed among 50.33 lakh landless labourers (including 36% SC and 14% ST beneficiaries). 1875.37 lakh acres of land were brought under the process of land consolidation upto November 1995. Successful effects have been made in various states like Maharashtra, Uttar Pradesh, Punjab and Haryana in land consolidation work. Legislation for ceilings provides a financial assistance of Rs. 2500/- per hectare for cultivation on the low quality land taken over under ceiling laws.

Agriculture Holdings
The average size of holding in India is continuously decreasing due to rapid and high population growth. The continuous division and fragmentation of holdings has increased the number of holdings, obviously of smaller size. According to the results of Agriculture census 1990-91, the total number of Operational holdings in the country had increased from 972 million in 1985-86 to 1066 million in 1990-91. Operated area, on the other hand, had risen only marginally, i.e., by about 0.6%. Rise in number of holdings without corresponding increase in area clearly showed pressure of population on land with average size of holding declining from 1.69 hectare in 1985-86 to 1.55 hectare in 1990-91. 59% of tltal operational holdings in s1990-91 were of size less than 1 hectare ( i.e., small holdings), 7.2% of size between 4-10 hectares (i.e., medium holdings) and only 1.6% of size more than 10 hectares (i.e., large holdings). In 1985-86, Rajasthan was having the highest average holding size of 4.34 hectares, followed by Punjab having an average size of 3.77 hectares. Contrary to it. Kerala was having the lowest average holding size of 0.36 hectares (1985-86 data are the latest.)

Agricultural holdings are termed as follows 1. Economic Holding It is that holding which ensures a minimum satisfactory standard of living to a family. In other words, economic holding is a minimum essential area for profitable agriculture. 2. Family Holding Family holding is that holding which gives work to average size family having one plough under traditional farming system. In other words, family holding is a plough unit which is neither less nor more for an average size family to cultivate it properly. 3. Optimum Holding Maximum size of the holding which must be possessed and owned by a family is called optimum holding.

National Agricultural Insurance Scheme (NAIS) 1999-2000

National Agricultural Insurance Scheme (NAIS) has been implemented in the country since June 22, 1999. NAIS is sponsored by General Insurance Corporation. To meet the demand for bringing in more crops into the purview of crop Insurance, extending its scope to cover all farmers (both loanee & non-loanee) and lowering the unit area of insurance. This new scheme NAIS of Rashriya Krishi Bima Yojana has been introduced in the country from Rabi 1999-2000. This new Crop Insurance Scheme entitled NAIS has replaced the earlier Comprehensive crop Insurance Scheme (CCIS). The salient features of NAIS are as follows: The scheme envisages coverage of all the food crops (cereals & pulses), oilseeds, and annual horticulture/commercial crops, in respect of which past yield data is available for adequate number of years. Under NAIS, no upper limit of insured amount has been laid down (which under CCIS, the upper limit was Rs. 10,000).

New National Agricultural Policy

Union Government has announced new National Agricultural Policy in the Parliament on July 28, 2000. This policy has been planned under the provisions of world Trade Organisation so as to face the challenges of agriculture sector. This policy gives emphases on promoting agricultural exports after fulfilling domestic demand. The salient features of this policy are: 4% growth rate p.a. for the next two decades. 4% growth rate p.a. target to be achieved by 2005. Land reforms to provide land to poor farmers. Consolidation of holdings in all states of the nation. Promoting private investments in agriculture. To provide insurance umbrella for crops to farmers. To promote bio-technology. Promoting research for developing new varieties and ensuring protection to the developed warieties.

Premium rates vary between 1.5% to 3.5% of sum insured. The rates are (i) Oilseeds 3.5% of sum Insured (ii) Remaining Kharif Crop 2.5% pf Sum Insured (iii) Wheat 1.5% of sum Insured (iv) Remaining rabi Crop 2.0% of Sum Insured In case of commercial & horticulture crops, actuarial rates will be charged. Small & marginal farmers will be entitled to subsidy of 50% of the premium charged to be shared equally between Central Government and the state government. Premium subsidy will be phased out over a period of 5 years. NAIS would operate on the basis of area Approach.

During Rabi 1999-2000, 16 States/Uts Assam, Goa, Gujarat, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Orissa, Pondichery, Andhra Pradesh, Bihar, Meghalaya, U.P., Karnataka, Andman Nichobar Islands and Tamil Nadu have joined the scheme. Two more states Sikkim and West Bengal have shown their willingness to join the scheme w.e.f. 2000-2001 season. Performance of NAIS Rabi 1999-2000 Farmers covered Sum Insured (Rs. Crore) Insurance charge (Rs. Crore) 584239 339 5 Kharif Upto 30.9.2002 5772063 4872 140

Green Revolution in India

Agricultural research has made an improvement in traditional farming in every country of the world. The first agriculture research center was established by agriculture scientist J. V. Bosingault at Ellses in 1934. It was a center, which initiated agriculture research. American society of Agronomy was established in 1908, which accelerated agricultural development in America. Indian Society of Agronomy was established in fifties of 20th century. During 1958, for the first time in India wheat production increased from 120 lakh tones to 170 lakh tones. American scientist Dr. William Gande termed it as Green revolution. During the middle of sixties, Indian Agricultural scientists developed a number of new high yielding varieties of wheat by processing wheat seeds imported from Mexico. These varieties where having production potentialities of 60-65 quintals per hectare. A similar improvement in variety of rice was also observed. As a result of introducing these high yielding varieties a true Green Revolution was observed in middle of sixties which

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

Green Revolution in India gave a rise to productivity of different crops. New techniques still possess potentialities of increasing production of wheat 2.5 times, rice 3 times, maize 3.5 times, jowal 5 times and bajra 5.5 times. Indian Green Revolution is, thus, associated with the use of HYVS (High Yielding variety seeds), chemical fertilizers and new techniques which led to a sharp rise in agriculture production during the middle of 1960. During 1960-61 a programme named Intensive Agriculture District programme (IADP) was introduced in 7 districts of the country. This programme was aimed to provide credit loans, seeds, fertilizers, equipments etc. to the farmers and to prepare an infrastructure for intensive farming in other areas of the country. During 1964-65, second similar programme named Intensive Agriculture Area programme (IAAP) was introduced in other parts of the country. This programme was centered to a few particular specific crops. Both the Programmes IADP and IAAP were related to intensive farming but their operation was limited to traditional varieties of crops. Due to severe drought in 1965-66 and in 1966-67, government adopted the new agriculture policy using HYVS (High yielding variety seeds) for accelerating agricultural production. Besides using HYVS, this new agriculture policy also included multiple crop programmes. The details of area covered under HYVS are shown in Table 8. Table 8 Area Covered Under HYVS Crop Rice (Paddy) Wheat Jowar Bajra Maize Ragi Total 1966-67 6.8 5.4 1.9 0.6 2.1 -18.9 1994-95 310 232 71 54 34 12 713 1995-96 314 231 75 55 36 12 723 (In Lakh Hectares) 1996-97 1997-98 (Provisional) 334 322 237 230 83 90 61 70 38 36 11 12 764 760

Seed Sector Reforms

Based on the recommendations of Seed Policy Review Group, the draft Seed Act 2000 is under preparation which would replace the existing Seeds Act 1966. The proposed legislation has the following features: Establishment of National Seeds Board (NSB). Compulsory registration of any seed for purpose of sowing or planting to be granted by NSB. Registration to be granted for new varieties on the basis of multilocational trials over a minimum period of 3 seasons. The NSB will accredit ICAR Centers, State Agriculture Universities and private organization to conduct value for cultivation and use trials for purpose of registration for a fixed period. Registration of seed producers and processors.

Import and export of seeds will be regulated under this act. Import for sale of seeds will be permitted only of registered varieties. Import of seed of limited quantity of unregistered variety is to be permitted for research and trial.

Seed Crop Insurance

The scheme for Seed Crop Insurance has been introduced for identified crops viz. Paddy, Wheat, Maize, Jowar, Bajra, Gram, Red Gram. Groundnut, soyabean, sunflower and Cotton in the Stares of Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan and Uttar Pradesh with a view to stengthen confidence in the existing Seed Breeders/Growers and to provide financial security to Seed Breeders/Growers in the event of failure of Seed Crop w.e.f. Rabi 1999-2000 season. This scheme covers all natural risks at the following stages Failure of seed crop either in full or in part due to natural risk. Loss in expected raw seed yield. Loss of seed crop after harvest. At seed certification stage.

White Revolution and Operation Flood in India

White revolution is associated with a sharp increase in milk production. During 1996 65, Intensive Cattle Development Programme (ICDP) was introduced in the country in which a package of improved animal husbandry was given to cattle owners for promoting white revolution in the country. Later on, to accelerate the pace of white revolution a new programme named Operation Flood was introduced in the country. The Operation Flood Programme, which is the worlds largest integrated dairy development programme, has made considerable progress in achieving its outlined objectives. During 1999-2000, 78.1 million tones of milk was produced in the country. According to the Ministry of Agriculture the demand of milk in the country is expected to be 79 million tonnes by 2000 A.D. Buffaloes, Cows and Goats contribute 50%, 46% and 4% respectively in total milk production of the country. India stands first in the world in milk production. USA stands second in the world. Dr. Varghese Kurien is the of operation flood in India. All credit for its implementation and successful operation goes to him only. Operation flood programme was started in 1970 by National Dairy Development Board (NDDB). Milk Production and per capita Availability Year Milk Production Per capita (Million Tonnes) Availability (Grams/ Dav) 1950-51 17.0 124 1960-61 20.0 124 1970-71 22.0 112 1980-81 31.6 128 1990-91 53.9 176 1996-97 9.1 202 1997-98 (P) 70.8 204 1998-99 (P) 74.7 211 1999-2000 (A) 78.1 214

(P) Provisional (A) Anticipated

The programme has since completed its III phase in April 1996. By September 1996 about 73300 dairy cooperative societies were organized in 170 milk sheds involving over 9.4 million farmer members. The average milk procurement during July 1997 was 107.3 lakh kg. of milk per day. The average milk marketed per day was about 112 lakh liters. The programme has made a sound impact on rural masses and has encouraged them to take up dairying as a subsidiary occupation. It has offered a reliable and regular source of income as more than 62% of milk procurement in the Operation flood areas comes from the marginal, small and landless farmers. The milk production increased steadily and it has reached to an estimated level of about 74.7 million tonnes during 1998-99 from about 66 million tonnes in 1995-96. Per capita milk availability per day was 112 gm in 1970 which went upto the level of 214 gm in 1999-2000 due to success of operation Flood Programmes. The recommended nutritional requirement of milk as per recommendation of ICMR is 220 gm per day. Indian level of per capita consumption is very low as compared with that of developed nations. This level is about 900 gm in USA. A disparity regarding per capita milk consumption among various States is also found in India. It is 800 gm in Punjab, 640 gm in Haryana while it is only 20 gm on an average in north-east States of the country.

Animal Hasbandry & Dairing Highlighte

Animal Husbandry & dairing play an important role in national economy and in Socio-economic development of the country. Live stock sector provides regular employment to 9.8 million in principal status and 8.6 million in subsidiary status which together constitute 5% of the total work force. India owns one of the largest livestock populations in the world. It accounts for 16% of the cattle population and 57% of buffalo population. India has become the largest producer of milk in the world. The milk production in 1999-2000 is expected to be around 78 million tonnes. Livestock contributed 74.7 million tonnes of milk, 30.2 billion eggs, 45.5 million kgs. Of wool, 4.43 million tonnes of meat and 5.66 million tonnes of fish during 1999-2000. Over the years, the contribution of livestock sector to agriculture GDP has increased from 17 25%. Export earnings from livestock sector and related products increased to Rs. 1925 crore in 1998-99 as compared to Rs. 792 crore of previous year showing an annual growth of about 12%

Yellow Revolution
Green revolution established many landmarks in the production of foodgrains. The next step in the series of agriculture research and development came in operation with the name Yellow Revolution. This yellow revolution is associated with the objective of achieving self-dependence in the production of oil seeds. Oilseeds technological mission was introduced for ensuring optimum utilization of production, processing and management technology in oilseed crops. At present 337 districts of 23 States are associated with oilseed production programme. Yellow revolution in India ensured remarkable achievements in production of oil seeds and edible oils.

Use of Fertilizers
According to agriculture scientists, different types of fertilizers ( i.e., Nitrogen, Phosphate and Potash-NPK) should be used in a balanced proportion to maintain the productivity of soil. For India, the standard ration for the use of various fertilizers has been assumed to be 4 : 2 : 1. But during 1999-2000, this ratio was 6.9 : 2.9 : 1. For 2000-2001, the estimated ratio is 6.4 : 2.7 : 1. It shows that consumption is baised in favour of nitrogenous fertilizer. At present only urea which is the main nitrogenous fertilizer, constituting about 60% of the total fertilizer consumption in the country, is under statutory price control. Chemical Fertilizer Consumption Ratio : NPK Year N P 1960-61 7.2 1.8 1970-71 6.5 2.0 1980-81 5.9 1.9 1990-91 6.0 2.4 1995-96 8.5 2.5 1996-97 10.0 2.9 1997-98 7.9 2.8 1998-99 8.5 3.1 1999-2000 6.9 2.9 2000-2001* 6.4 2.7 * Estimated

K 1 1 1 1 1 1 1 1 1 1

To maintain a balance in fertilizers use, government enhanced the prices of urea by 10% on Feb. 21, 1997 and also enhanced the subsidy on Phosphate and Polash fertilizers, Since April 1, 1990, subsidy of Rs. 750 per tonne on DAP (Diamonium Phosphate) Rs. 100 per tonne on SSP (Single Super Phosphete) and Rs. 500 per tonne on MNOP (Muriate of Potash) has come into force in 1995-96. The total production of Phosphate and Nitrogen fertilizers was 31.41 lakh tonnes and 104.8 lakh tonnes respectively in 1998-99. Domestic production of nearly 13 million tonnes of nitrogenous and phosphatic fertilizer (N + P) falls short of consumption by over 20%. The short fall in domestic production of N and P is met from which involves a subsidy since domestic selling prices are kept low compared to the landed cost of imported fertilizers. In case of Potash entire requirement is imported. Table 9 Consumption of Chemical Fertilizers (1000 MT Nutrients) Fertilizer 1997-1998 1998-1999 1999-2000 2000-2001* Nitrogenous Fertilizer 10901 11354 11593 12336 Phosphatic Fertilizer 3914 4112 4799 5114 Potassic Fertilizer 1373 1332 1678 1918 All Fertilizer (NPK) 16188 16798 18070 19368 Percentage Increase * Estimated 13.14 3.77 *7.57 7.19

Table 10 Production, Import and Subsidies of Chemical Fertilizers Production (N + P) Thousand Tonnes 150 1059 3005 9045 11155 13062 13621 14289 15250 Import (N + P + K) Thousand Tonnes 419 629 2759 2758 1975 3174 3145 4075 2203 Economic Subsidy (Crore Rs.) --505 4389 7578 9918 11387 13244 12651

Year 1960-61 1970-71 1980-81 1990-91 1996-97 1997-98 1998-99 1999-2000 2000-2001 (BE)

India ranks third in the world in fertilizer production but Indian production fulfils only 80% of nitrogen and 70% of phosphate consumption requirements of the country. For potash fertilizer India is fully dependent on imports. To encourage balanced fertilizer use, The Central Government Continues to provide subsidy on decontrolled fertilizers such as Diammonium Phosphate (DAP), Muriate of Potash (MOP) SSP and Complexes. The current selling prices of urea and P & K fertilizers as fixed by the Government are as under Fertilizer Selling Price (Rs. Per tonne) Urea 4600 DAP 8900 MOP 4255 Complexes 6620-8520 SSP Varies from state to stat The farm-gate price of urea, which is at present fixed at Rs. 4600 per tonne excluding local levies, is amongst the lowest in the region and is heavily subsidized by the government on every tonne of urea sold to the farmers. Subsidy on Nitrogenous fertilizer alone (mostly urea) in 2000-01 (BE) is estimated at Rs. 8558 crore. Paradeep Phosphate Limited: Countrys Single Enterprise for Producing Phosphate Fertilizer As joint enterprise with Nauroo Paradeep Phosphate Limited worth Rs. 120 crore share capital investment was established in 1981 on the eastern coast at Paradeep of Orissa. The equity share of the Government of India was 51% and that of Nauroo Government 49%. Due to continuous loss and low capacity in this production Nauroo Government dissociated itself from this joint enterprise in May 1993 and all its shares were purchased by the Government of India. It should also be made known that PPL is the only phosphate fertilizer producing enterprise in India.

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

Irrigation and Flood Control

The planning Commission has introduced a new classification of irrigation schemes: 1. Major Irrigation Schemes Those with culturable command areas (CCA) more than 10,000 hectares. 2. Medium Irrigation Schemes - Those with culturable command areas (CCA) between 2,000 and 10,000 hectares. 3. Minor Irrigation Schemes - Those with culturable command areas (CCA) upto 2,000 hectares. Strengthening of irrigation infrastructure is one of the main objectives in irrigation supply management. In the beginning of 8th plan, there were 162 major, 240 medium and 74 Extension Renovation and Modernisation (ERM) projects under operation which remain continued during 9th plan also. An allocation of Rs. 79317 crore has been made for these irrigation projects in 9th plan. With a view to ensuring early completion of projects for providing irrigation benefits to the farmers, Rural Infrastructure Development Fund (RIDF) has been in operation since 1995-96. The Government launched Accelerated Irrigation Benefits Programme (AIBP) in 1996-97. Amounts of Rs. 500 crore, Rs. 952.1 crore and Rs. 1119.18 crore were released under AIBP as Central Loan Assistance (CLA) to the states during 1996-97, 199798 and 1998-99. With effect from 1999-2000, CLA under AIBP is also being provided for Minor irrigation projects of NE region, hill states and drought prone districts of Orissa.

New System of Irrigation Drip Irrigation Under Sprinkler/Drip Irrigation System water is sprinkled evenly on total agriculture ground through a pipe network cropped area. Empirical studies show that this system of drip irrigation saves 30% to 40% water as compared to irrigation with traditional method, i.e., surface irrigation. This new system of irrigation also ensures 20-25% more productivity per hectare. The Central Government has taken decision in Union Budget 1996-97 to bear 70% cost of establishing Drip Irrigation System as subsidy. The maximum ceiling of this subsidy has been raised from Rs. 15,000 to Rs. 25,000. A special provision of subsidy up to 7\90% of total cost has been made for marginal farmers, women, SC/ST people

The economic aid on sprinkler and drip irrigation equipments has been enhanced from 50% of total system cost to 70%. The maximum ceiling of this economic aid has been increased from Rs. 15,000 to Rs. 25,000. The limit of economic aid for these equipments to marginal and small farmers, women, SC and ST has been relaxed upto 90% of the total system cost. The progress of various irrigation projects has been shown in Table 11. Table 11 Development of Irrigation Potentiality and Its Use. (Million Hectare) Item 1. Major and Medium Irrigation Project (a) Potential (b) Utilization 2. Small Irrigation Projects (a) Potential (b) Utilization 3. Total Irrigation (a) Potential (b) Utilization At the End of 7th Plan (1985-90) 29.9 25.5 46.6 43.1 76.5 68.6 At the End of 8th Plan (1992-97) Ninth Plan Target (1997-2002) 9.81 8.71 7.24 4.93 17.05 13.64 At the End of (1999-2000)

32.96 28.44 56.60 52.32 89.56 80.76

35.35 30.47 59.38 54.23 94.73 84.70

Command area Development Programme (CADP)

CADP, Center Government sponsored programme was initiated in 1974-75. The aim of this programme was to ensure better utilization of irrigation capacities of selected large and medium irrigation projects of the country. The basic objective of CADP is to maximize productivity in the irrigation command areas through an integrated approach covering farm development works including construction of field channels and field drains, land leveling wherever necessary and the introduction of rotational supply of water to ensure equitable and assured distribution to individual farm holdings. Beginning with 60 major and medium irrigation projects in 1974, the programme included 217 irrigation projects at the end of 1997-98 with culturable Command Area (CCA) of 21.78 million hectares spread over 23 states and two Union Territories.

Agricultural Credit
Three types of loans are provided to Indian farmers to meet their financial requirements (i) (ii) (iii) Short term loans Medium term loans Lon term loans

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

Medium term loans are provided for a period of 15 months to 5 years to purchase agricultural equipments, animals and for land improvements. Long term loans are provided for a period of more than 5 years. This type of loan is taken by the farmers to purchase land and expensive agricultural equipments and for repayment of old loans. Indian farmer acquire above types of loans from two sources (i) (ii) Non-institutional Sources like money lenders, landlords, big business men etc. Institutional Sources like commercial banks, Co-operative Banks and Governments sources.

Policy on agriculture credit aims at progressive institutionalization of credit agencies for providing credit to farmers for raising agricultural production and productivity. Agricultural credit is disbursed through a multi-agency network consisting of Co-operatives, Commercial Banks and Regional Rural Banks (RRBs). The flow of institutional credit for agriculture and allied activities has increased from Rs. 18744 crore in 1994-95 to Rs. 36897 crore in 1998-99. The total credit flow from all agencies is estimated to be Rs. 44612 crore in 1999-2000. Apart from substantial expansion in the flow of credit by commercial banks and Regional Rural Banks (RRBs), the co-operative Credit institutions continue to be important institutional agencies for providing credit support and services for agricultural and rural development. Co-operatives account for 44% share in the credit flow for agriculture. Table 12 Agricultural Advances Recovery (Per cent) Institution Commercial Banks Distt. Central Co1995-96 62.0 69.0 1996-97 63.3 70.0 1997-98 66.1 70.0 61.0 1998-99 66.8 70.0 64.0 1999-2000* N.A. 69.24 N.A.

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

Table 13 Flow of Institutional Credit to Agriculture Rs. Crore Institution 1998-99 1999-2000* 2000-2001** (A) Cooperative Banks 15957 18429 22706 Short Term 12571 14648 17598 Medium/Long Term 3386 3781 5108 (B) RRB 2460 3329 4061 Short Term 1710 2517 2412 Medium/Long Term 750 812 1649 (C) Commercial Banks 18443 22854 24693 Short Term 9622 11697 10973 Medium/Long Term 8821 11157 13720 Total 36860 44612 51460 * Estimated ** Projection.

Kisan Credit Card Scheme

Kisan Credit Card Scheme was introduced in 1998-1999 to facilitate access to credit from Commercial Banks and Regional Rural Banks. The salient features of the Scheme are as given below: (a) Farmers eligible for production credit of Rs. 5000 or more are eligible for issue for Kisan Credit Card. (b) Eligible farmers to be provided with a Kisan Card and pass book or card-cum-pass book. (c) Provision of revolving cash credit facility involving any number of drawals and repayments within the limit. (d) Entire production credit needs for full year plus ancillary activities related to crop production considerea while fixing limit. In due course, all activities and non-farm credit needs may also be covered. (e) Limit to be fixed on the basis of operational land holding, cropping pattern and scale of finance. (f) Sub-limits may be fixed at discretion of banks. (g) Card valid for 3 years subject to annual review. (h) Each drawal to be repaid within 12 months. (i) Conversion/reschedulement of loans also permissible in case of damage to crops due to natural calamities. (j) As incentive for good performance, credit limits could be enhanced to take care of increase in costs, change in cropping pattern etc. (k) Security, margin, rate of interest as per RBI norms. (l) Operations insy be through issuing branch or at the discretion of bank, through other designated branches. (m) Withdrawals through slips/ cheques accompanied by card and passbook. Number of Kisan Credit Cards Issued and Amount Sanctioned Cumulative Progress upto 31 December, 2000* Agency Care Issued (in Lakh) Amount Sanctioned (Rs. Crore) Cooperative Bank 71.02 12831 RRBs 5.92 1381 Commercial Bank 31.48 7010 Total 108.42 21222 * Provisional

Important Facts Related to Indian Economy

National Income
1. According to C.S.O.s Estimates, Growth Rate for 1999 2000 (growth rate of Real Gross domestic Products) was 6.4%. the anticipated estimate of GDP growth rate for 2000-2001 is 6.0%. 2. The reduction in overall growth rate of GDP to 6% in 2000-2001 is mainly due to a decline in the growth rate of Service Sector from 9.6% in 1999-2000 to 8.3% in the current year 2000-2001. 3. During the Eighth Five Year Plan period average Growth Rate of 6.5% p.a. was achieved against the target of 5.6% p.a. 4. During Ninth Plan (1997-2002) the revised growth rate of 6.5% p.a. has been targeted. 5. During 1999-2000, GNP at factor cost at 1993-94 prices was Rs. 1140389 crores. 6. During 1999-2000 per capita income in India was Rs. 16047 (at current prices). 7. According to World Development Report 1999/2000. per capita income in India was $ 430 during 1998. 8. According to estimates of C.S.O. during 1999-2000 Net National Product at Factor Cost in India was Rs. 1011224 crore (at 1993-94 prices.) 9. According to CSO laterst estimates Net National Product on Current Prices during 1999-2000 was Rs. 1590301crore. 10. For 2000-2001, NNP at factor cost has been estimated On constant Prices -- Rs. 1072906 crore On Current Prices -- Rs. 1776675 crore 11. Real per capita income increased by 4.9% at 1980-81 prices during 8th Five year Plan. 12. GDP at factor cost on 1993-94 prices for 2000-2001 has been estimated Rs. 1221174 crore which is 6.0% higher than that of year 1999-2000. 13. The growth rate in GDP during 2000-2001 has been estimated 6.0%. 14. Per capita income on 1993-94 prices for 2000-2001 has been estimated at 10654 rupees which is 4.4% more than that of 1999-2000. 15. On the basis of new series Gross Domestic Saving was 22.3% of GDP and Gross domestic Capital formation was 23.3% of GDP.

Agricultur

1. The growth rate of agriculture sector which was 0.7% in 1999-2000 marginally improved to 0.9% in 2000-2001. 2. Production of oil seeds in various years are as follows 1995.96 22.1 M. tonnes 1996.9724.4 M. tonnes 1997.9821.3 M. tonnes 1998.99 25.2 M. tonnes 1999.2000 21.2 M. tonnes Foodgrain Production (In Million Tonnes) 1995-96 180.4 1996-97 199.4 1997-98 192.3 1998-99 203.5 1999-2000 208.9 2000-2001 199.0 3. Rice is main food crop of India. 4. Green Revolution in the country was actually started in the mid sixties. 5. Due to Green Revolution, the share of wheat in the total production was increased. The share of rice remained constant while the shares of cereals and pulses were reduced. 6. Coarse cereals include jawar, maize, bajra, ragi and small millets. 7. During 2000-2001, the production of cereals was 29.9 million tonnes. 8. Nine oil seeds which are produced in India are : groundnuts, mustard, toria, soyabean, sunflower, sesamum (til), castorseed, nigerseed, linseed and safflower (kardi). 9. During 2000-2001, groundnut accounted for 33%, rapeseed and mustard 23.1% and soyabean 28% of total oilseeds production in the country. 10. During 1999-2000, the production of groundnuts was 53 lakh tonnes while during 1999-2000, its production has gone to 62 lakh tonnes. 11. Madhya Pradesh has the highest production of soyabean in India. 12. During 1999-2000, the total wheat production was 756 lakh tonnes. 13. During 1999-2000, the production of rice was 895 lakh tonnes. During 2000-2001, the production has been 868 lakh tonnes.

14. India holds first position in the world in the production of sugarcane and sugar. 15. During 1999-2000, the production of sugarcane was 29.92 crore tonnes. During 2000-2001, its production has been 30.06 crore tonnes. 16. During 1999-2000, the production of cotton was 116 lakh bales of 170 kg. each. During 2000-2001, its production has been 132 lakh bajes. 17. During 1999-2000, production of jute and mesta was 105 lakh bales of 180 kg. each. (which reduced to 99 lakh bales of 180 kg. ) 18. U.P. is the highest wheat producing state in India. Punjab and Haryana hold second and third positions respectively. 19. The highest rice producing state is W. Bengal. U.P. and Andhra Pradesh hold the second and third places respectively. 20. The highest cereals producing area is Maharashtra, Karnataka, and U.P. hold the second and third position respectively. 21. The highest pulse producing state is M.P., U.P. and Maharashtra hold the second and third places respectively. 22. India holds first place in the world for production of tea but exports just about 24% of its annual output and hence ranks fourth in export volume. 23. During 1999, the production of tea was 80.6 crore kg. 24. During 1999,190 million kg. of tea was exported. 25. During 1999-2000 coffees production was 2.92 lakh tonnes. For 2000-2001, its production was estimated at about 2.95 lakh tonnes. 26. India ranks sixth in world coffee production with an annual production of about 3 lakh tonnes. 27. Karnataka which is the largest producer of coffee in the country accounts for 56.5% of total coffee production in India. 28. Domestic demand for coffee in the country is about 50,000 tonnes p.a. 80% of the total coffee production is exported from India. 29. The productivity of rubber in the country during 2000-2001 (estimated) is 1600 kg per hectare, which is the highest in the world. At present countrys 97% of demand for natural rubber is met by indigenous production. 30. During 2000-2001, rubber production was 6.4 lakh tonnes. Kerala is the main rubber producing state which produces 90% of rubber in the country and accounts for over, 85% of the area under cultivation.

31. India is the largest milk producing country in the world. During 1999-2000 milk production was 78.1 million tonnes in the country. 32. Milk production and per capita availability of milk in 1950-51 was 17 million tonnes and 124 gm/day which became 78.1 million tonnes and 214 gm/day respectively in 1999-2000. 33. At the end of 1999-2000. Cumulative irrigation capacity created in the country was 947.3 lakh hectares in which 353.5 lakh hectares was under major and medium irrigation projects and the remaining 593.8 lakh hectares was under small irrigation projects. 34. Irrigation projects covering upto 2000 hectares cumulative command area are classified under small irrigation projects, from 2000 to 10,000 hectares command area is classified under medium irrigation project and more than 10,000 hectares command area is classified under major irrigation projects. 35. During 1997-98, 76.0 million hectares of agricultural land was brought under High Yielding Varieties (H.Y.V.). 36. In 2000-2001, the production of N + P fertilizers was 15.25 million tonnes. 37. Since August 1992, all controls on price and movement of phosphate and potash have been removed. 38. According to available data, Indiaranks first both in production and consumption of sugar in the world. 39. India is the third highest tobacco producing country in the world. Annual production of tobacco in India is about 5.5 to 6.00 lakh tonnes. 40. China, the largest producing and consuming country of tobacco in the world, has prohibited smoking at the public places since May 1997. 41. In April 1995, Comprehensive Crop Insurance Scheme was launched. Premium of Insurance is shared by the Center and State Government in ratio of 2 : 1 under this scheme.

Industr
1. During Eighth five year Plan the annual growth rate of industrial production was 8.0%. For 9th plan it is tar eted to be 8.5% p.a. 2. Condition of industrial which was almost stagnant during 1991-92, improved int eh subsequent years. 3. The base year for Index of Industrial Production (IIP) has been changed to 1993-94. In new industrial production index the weight of manufacturing sector is 79.36, while the weight of mines and electricity are 10.47 and 10.17 respectively. 4. At the end of the Eighth Plan Central Government has created Jute Modernization Fund of Rs. 150 crore and Jute Development Fund of Rs. 100 crore to achieve the target of exporting Jute worth Rs. 1000 crore. 5. A separate Industrial Policy for small units was declared on 6 th August, 1991 for the first time. 6. Under the latest policy those units are called small industrial units which have investment of rupees one crore in plants and machinery. Subsidiary and export oriented units have also the same investment limit. 7. the small units having investment upto Rs. 25 lakh in plants and machinery are called tiny units. 8. Under the provisions of new Industrial Policy, export oriented industrial units will get automatic sanction of Foreign Equity Investment upto 51%. 9. For making foreign Capital Investment more easier, Foreign Exchange Regulation Act 1973-FERA WAS LIBERALIZED ON 8 TH January, 1993 by an ordinance issued by President of India. Now in December 1999 FERA has been replaced by FEMA (Foreign Exchange Management Act.) 10. According to the Survey of Public Enterprise 1999-2000. ONGC had the highest net profit (Rs. 3629.4 crore) among all public sector units.