NOTE

ON

FARM SECTOR
IN

UTTAR PRADESH
SUNIL KUMAR
OCTOBER,2005
Department of Planning, Government of Uttar Pradesh
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Note on Farm Sector in Uttar Pradesh

Introduction The economy of Uttar Pradesh is predominantly agrarian and performance of agriculture and allied activities such as horticulture, animal husbandry, dairying and fisheries are critical in determining the growth rate of the State. Primary sector (inclusive of mining) contributed 36.8% to the States income in 2003-04 and provided employment to 66% of total workers. However, the share of this sector in State income has been progressively reducing.
Table 1: Contribution of various sectors to State income
50 40 30 20 10 0 2001-02 2002-03 2003-04 2004-05 Prim ary Secondary Tertiary

Farmers & farming community Out of an estimated number of 22.15 million rural households in Uttar Pradesh, 77.4% are farmer households. According to data released by NSSO based on 59th round of NSS, 24% of UP farmers (27% at all India level) did not like farming and felt that agriculture was not profitable. In all 41% farmers in UP (40% at all India level) felt that, given a choice, they would take up some other career. This indicates a serious problem wherein the main protagonist is suffering from low self esteem and does not believe that what he is doing is worthwhile economically or even socially. In the social hierarchy, farming as a profession now figures considerably low in the social order. Data released by NSSO also brings to the fore certain important facets about farmers, farming community and their awareness of Government initiatives taken in the sector. Awareness level of UP farmers is close to the all India figures in respect of biofertilizers, crop insurance etc. While at all India level, about 18% of farmer households knew what bio-fertilizers were and 29% understood what minimum support price meant, in UP these figures were 15% and 33% respectively. At all India level only 4% of farmer households had ever insured their crops and 57% did not know that crops could be insured. However, in UP only 1.2% of farmer households had ever insured their crops and 56% were unaware that crops could be insured. These data clearly highlight that extension activities in the State need to be revamped. Investment in Agriculture & Allied Sector At all India levels, the present actual investment in the agriculture sector is only 1.3% of the total Gross Domestic Product (GDP). Position is not much better at the State level either. As shown in Table 2 below, the percentage expenditure in Agriculture &

Allied sector has declined over the Plan period from a high of about 29% during Second Five Year Plan and the Annual Plans of 1966-69 to a low of 5.47% during Sixth Five Year Plan and about 8.6% during Tenth Plan.
Table 2 : Percentage Expenditure on Agriculture & Allied Sector over Plan period in Uttar Pradesh

35 30 25 20

%
15 10 5 0 1st 2nd Plan Plan 3rd Plan 196 669 4th 5th Plan Plan 197 980 6th 7th Plan Plan 199 092 8th 9th 10th Plan Plan Plan

Gross Capital formation in agriculture at 1993-94 prices Data reveals that there is declining public investment in agriculture, stagnant gross capital formation and falling share of agriculture in the Total Plan outlay. There has been deceleration in the sector in the past decade.
Table 3: Trend of investment in agriculture at 1993-94 prices

(Rs. Crore)
Year 1994-95 1997-98 2000-01 2002-03 Total 14,969 15,942 16,906 18,657 33.0 25.0 23.2 24.3 Percentage share of Public Private 67.0 75.0 76.8 75.7 Investment in Agriculture as % of GDP 1.6 1.4 1.3 1.3

In case of Uttar Pradesh, gross capital formation in Agriculture at current prices in the year 2000-01 was Rs.1966 crore of which 44% (Rs.864 crore) was Public investment and 56% (Rs.1102 crore) Private investment. Gross capital formation in agriculture in 3

Uttar Pradesh in 2000-01 was just 13.71 percent of gross capital formation in the State. Private investment in the State in agriculture and allied sector is considerably lower than the all India figures. The Committee on Capital Formation in Agriculture set up by Government of India in its report has noted that the coverage of items and the procedure for compilation of capital formation in agriculture as followed by the Central Statistical Organization is constrained by the United Nations System of National Accounts (SNA). The present estimates of capital formation in agriculture does not represent total capital formation augmenting capacity of agriculture. Expenditures on agriculture education, research and training help to enrich human capital and lead to break-through in increasing productivity in agriculture. Although these activities are not taken as capital formation activities in SNA, it is desirable to prepare a separate estimate of expenditure on R&D for agriculture to keep track of development of agriculture. Further, Public Sector investment in agriculture mainly consists of investment in irrigation projects (90%) while expenditure on soil and water conservation etc. are included as capital formation under Public Administration. With the adoption of new strategy for agricultural growth and diversification of agriculture from traditional crop cultivation to horticulture etc. which would require more investments on cold storage, rural roads, communication, marketing network and facilities, warehouses etc., these need to be taken into account while determining capital formation for agriculture instead of capital formation in agriculture. Based on the recommendations of the aforesaid Committee an attempt has been made by the Department of Economics and Statistics, GoUP to estimate gross capital formation for agriculture. Details are given in Table 4 below:Table 4: Gross Fixed Capital Formation for Agriculture in Uttar Pradesh in 2000-01 (Rs. in lakh)
# 1 2 3 4 5 6 7 7a 8 8a 8b 8c 9 10 11 12 13 Sectors Agriculture & Animal Husbandry Forestry & Logging Fishing Mining & Quarrying Manufacturing Agricultural Machinery Fertilizer & Pesticide Construction Electricity, Gas & Water Supply Electricity Transport, Storage & Communication Storage Communication Railway Trade, Hotels & Restaurants Trade Banking & Insurance Real Estate, Ownership of Dwelling & Business Service Public Administration Other Services Total Proportion of GFCF for Agriculture 1.0 1.0 1.0 1.0 0.9616 0.0880 0.0855 0.6930 0.0910 0.0660 0.2450 0.0525 Total GFCF 196572 6272 1455 668 330421 753 3549 266420 93476 80236 152546 2846 90004 46082 38357 32544 26994 416380 114499 19337 GFCF for Agriculture 196572 6272 1455 753 3413 23445 6860 1972 8190 3041 7973 1417 -

1663397

261363

Size of Holdings The average size of holdings is continually declining in the State. As per latest available information, 75.4% holdings are of less than one hectare and are marginal farmers. The average size of 90% of small and marginal farmers is about 0.55 hectares. Details of size of holdings in Uttar Pradesh are given in Table 5 below.
Table 5: Size of Holdings in Uttar Pradesh # 1 2 3 4 5 Size of Holdings (in hectares) Less than 1 hectare (marginal) 1.0 to 2.0 hectare (Small) 2.0 to 4.0 hectare 4.0 to 10.0 hectare 10.0 hectare and more Total 1985-86 (72.6%) (15.6%) (8.3%) (3.2%) (0.3%) (100.0%) (in thousand hectares) 1995-96 16237 (75.4%) 3135 (14.6%) 1586 (7.4%) 532 (2.5%) 39 (0.1%) 21529 (100.0%)

13782 2964 1582 602 55 18985

Indebtedness of farmers The data released by NSSO also provides useful insights regarding indebtedness of farmers in the country as a whole as well as Uttar Pradesh. In UP out of 17.16 million farmer households, 6.92 million (40.3%) were reported to be indebted while for the country as a whole, 48.6% (43.42 million) of 89.35 million farmer households were reported to be indebted. Estimated prevalence of indebtedness among farmer households was highest in Andhra Pradesh (82%) followed by Tamil Nadu (74.5%) and Punjab (65.4%). In UP, households with one hectare or less land accounted for 74% of all farmer households and about 39% of them were indebted. At all India level, more than 50% of indebted farmer households had taken loan for the purpose of capital or current expenditure in farm business. Such loans accounted for 584 rupees out of every 1000 rupees of outstanding loan. In Uttar Pradesh indebted farmer households which had taken loan for the purpose of capital or current expenditure in farm business accounted for 609 rupees out of every 1000 rupees of outstanding loan. Marriage and ceremonies accounted for 118 rupees per 1000 rupees of outstanding loans of farmer households in Uttar Pradesh. Banks (51%) followed by moneylenders (19%) were the most important source of loan in terms of percentage of outstanding loan amounts in Uttar Pradesh while for the country as a whole, the corresponding figures were 36% and 26% respectively. Average outstanding loan per farmer household was highest in the State of Punjab (Rs.118495) followed by Kerala (Rs.100832), Haryana (Rs.23555), Andhra Pradesh (Rs.12760) and Tamil Nadu (Rs.11023). Average outstanding loan per farmer household in Uttar Pradesh was Rs.6706. Agricultural production Agricultural production has been fluctuating over the years and there has not been much growth in the last decade. Total production of paddy in 2004-05 was less than what had been achieved even in the year 1995-96. Data given in Table 6 below clearly points

that there has not been much increase in total Kharif and Rabi food grain production over the years.
Table 6: Agricultural Production over the last ten years (000 tonnes)

# Crop
1 2 3 4 5 6 7 Paddy Total Kharif Foodgrains Wheat Total Rabi Foodgrains Total Foodgrains Oilseeds Pulses

95-96 9788 12967 21077 23705 36672 1389 2163

96-97 11197 14374 23287 26321 40695 1520 2591

97-98 11678 15082 22147 24939 40021 984 2282

98-99 10826 13212 22781 25612 38824 1070 2308

99-00 12633 15681 25551 28580 44261 1268 2551

00-01 11679 14998 25168 27777 42775 1145 2160

01-02 12856 15877 25498 28310 44187 1110 2377

02-03 9596 12003 23748 26370 38373 851 2182

03-04 13022 15996 25567 28442 44438 928 2380

04-05 9559 12498 22514 25305 37803 946 2366

Table 7graphically reflects the production of paddy and wheat in the State and the graph reflects stagnation or very little growth. Further, production of both main crops has been dipping with fluctuation in rainfall.
Table 7: Production of Paddy & Wheat in Uttar Pradesh (in thousand tones)
30000 25000 20000 15000 10000 5000 0

Paddy Wheat

19 95 -9 6

19 97 -9 8

19 99 -0 0

20 01 -0 2

Productivity Even with respect to crop productivity, it is apparent from data in Table 7 below that there is virtual stagnation with the highest yield of paddy being reached way back in 1996-97, of wheat in 1999-00, oilseeds in 1996-97 and pulses in 1999-00. In all other years, crop productivity has been fluctuating and, at times, quite sharply.

20 03 -0 4

Table 8: Crop Productivity in Uttar Pradesh (quintals/ha) # 1 2 Crop Rice Total Kharif Foodgrains Wheat Total Rabi Foodgrains Total Foodgrains Oilseeds Pulses 95-96 18.54 16.06 96-97 22.21 17.74 97-98 21.46 18.29 98-99 19.42 16.04 99-00 21.85 18.73 00-01 19.77 17.53 01-02 21.17 18.25 02-03 18.41 15.74 03-04 21.87 18.27 04-05 17.90 16.01

3 4 5 6 7

24.69 21.02 18.95 8.67 7.74

27.00 23.39 21.02 8.98 9.32

25.25 21.99 20.43 6.08 8.27

25.51 22.15 19.61 7.01 8.29

28.03 24.55 22.12 8.74 9.57

27.24 23.59 21.04 8.25 8.03

27.55 24.14 21.63 8.69 8.86

25.91 22.79 19.99 7.72 8.26

27.94 24.75 21.95 8.19 8.90

25.02 22.05 19.60 8.40 8.50

Seed Replacement rate Paddy and wheat are the major food crops in the State and data show that the seed replacement rate for both paddy and wheat have increased during the last four years and the target of 20% seed replacement is likely to be reached by the end of the Tenth Plan period.
Table 9: Seed Replacement rate in Uttar Pradesh
18 16 14 12 10 8 6 4 2 0 2001-02 2002-03 2003-04 2004-05

Paddy Wheat Annual Av

Based on situation assessment survey of farmers carried out in the 59th round of NSS, it has been reported that at all India level, almost 48% of farmer households purchased their seeds and 47% used farm saved seeds. Further, 30% farmers replaced seed varieties every year while another 32% replaced them every alternate year. But in UP, almost 47% of farmer households purchased their seeds and 46% used farm saved seeds much in tune with All India average figures. However, only 18% farmers replaced seed varieties every year and another 39% replaced them every alternate year. Further, at all India level, improved seeds were used by 46% farmer households during the kharif and 34% during the rabi season. They were available within the village for 18% farmer households. In UP, improved seeds were used by 48% farmer households

during Kharif and 53% during rabi season and improved seeds were available within the village for only 14% households.

Box : Use of Hybrid seeds by farmers in Uttar Pradesh In Basrahiya village of Gosainganj Block in Lucknow district, farmers explained that 11 varieties of hybrid paddy seeds and about 10 varieties of HYV seeds were available in the market. Farmers had taken a fancy to hybrid seed variety 6444 marketed by Pro-Agro. Although its price was Rs.160 /kg, it sold for Rs.200-220/kg as demand outstripped supply. About 8 kg of this seed is required in a hectare while in case of HYV seeds, the requirement is about 35-40 kg/hectare. Hybrid seeds are fast growing compared to several HYV seeds and productivity is also more. A farmer, Shri Deo Narain Patel had harvested about 85 quintals of paddy from one hectare of land in Bachan khera village of the same Block while Shri Pancham Lal of Basrahiya village mentioned that about 60 quintals of paddy could be grown in a hectare of land using hybrid seeds. Further, these seeds were reportedly pest resistant and so farmers saved on pesticides. Farmers were of the view that percentage farmers using hybrid seeds could rise from existing 30% if more seeds became available.

At all India and UP level, 40% and 34% of farmer households accessed various sources of information for modern technology for farming respectively. Of the sixteen different sources canvassed for accessing information relating to modern technology for farming, 16.7% farmers accessed information through other progressive farmers, 13.1% from input dealers and 13% through radio. In UP, 18.9% farmers accessed information through progressive farmers, 8.3% from input dealers and 15% through radio. Among the farmer households accessing information for cultivation from other progressive farmers, 405 received information on improved seed variety, 31% on fertilizer application, 15% on plant protection, and 14% on others. In UP, the corresponding figures are 59%, 28%, 9% and 10% respectively. Consumption of fertilizers, pesticides At all India level, fertilizers were used by 76% farmer households during kharif and 54% during rabi season. For 27% households, fertilizers were available within the village. While in UP fertilizers were used by 78% farmer households during Kharif and 88% during rabi season and for 23% households, fertilizers were available within the village. In UP, pesticides were used by 39% farmer households during Kharif and 35% during rabi whereas at all India level, pesticides were used by 46% farmer households during kharif and 31% during rabi season. Veterinary services were used by 26% during kharif and 21% during rabi while the figures for the same at all India level were 30% and 22% respectively.

Table 10: Consumption of Fertilizers in Uttar Pradesh (in thousand metric tones)
2500 2000 1500 1000 500 0 2002-03 2003-04 2004-05 Nitrogen Phosphate Potash

During the first three years of the 10th Plan, per hectare consumption of fertilizers has also increased from 126.72 kg to 134.98 kg. and it may come close to the target of 160 kg per hectare. In the year 2004, the proportion of NPK consumption in the State was 13:4:1 whereas the ideal proportion should be 4:2:1. It has also been observed that soil health has deteriorated sharply during the last few years and restoring soil health has emerged as a major challenge before the farmers and the State. Agriculture Credit About 90% farmers in the State are small and marginal farmers. The out reach of credit institutions, whether commercial banks or cooperative institutions is very low. Out of 2 crore farmers in the State, the actual coverage of farmers would be less than 20%. Details of agricultural credit provided in the State in the last three years has been indicated in Table 11.
Table 11: Agricultural Credit in Uttar Pradesh

2002-03

2003-04 4110.84 27.20

2004-05 5295.51 23.62

Agriculture loan (Rs. 3880.44 in crore) Kisan Credit Card 32.00 (in lakh)

It may be noted that the agricultural credit in the country by Cooperative banks, Commercial banks, RRBs and other agencies increased from Rs.69560 crore during 2002-03 to Rs.86980 crore during 2003-04 and was projected to touch Rs.104500 crore in 2004-05. Thus, despite the State contributing about 13% in the agricultural gross domestic product of the country in 2002-03 and about 20% of the total food grain production in the country, agricultural loan disbursed in the State was only 5.58% of total agricultural loans disbursed in the country during 2002-03, 4.72% in 2003-04 and 5.06% in 2004-05. There are 7479 Cooperative Societies functioning at Nyaya Panchayat level in the State and they constitute the main point of interface between the farmer and the Cooperative Society for disbursement of short-term, long-term agricultural loans, provide 9

HYV seeds, pesticides, fertilizers, improved agricultural implements etc. there are 50 District Cooperative Banks which have 124 branches. However, data reveals that there is virtual stagnation in the functioning of the Cooperative Societies in the State. During 2002-03, these disbursed Rs.1249.38 crore as short-term agricultural loan to the farmers and this came down to Rs.1243.12 crore in 2003-04. Like wise the figures for long term agricultural loans declined from Rs.716.51 crore in 2002-03 to Rs.711.04 crore in 200304. It is also being seen that earlier Cooperative sector was meeting 65-70 percent of the agricultural credit needs and the rest by the commercial banks. But now the role has been reversed and presently commercial banks are making available 70 percent of agricultural credit and only 30 percent by the Cooperative banks. The average loan being provided to farmers in the State is only to the tune of Rs.2000 / hectare which is clearly insufficient for meeting the input cost of HYV seeds, fertilizers, pesticides etc. Thus, it can be safely asserted that the agricultural sector in the State is under-financed. Further, an examination of the role of cooperative societies reveals that while earlier they were providing nearly 75% of the credit, their disbursement has come down to about 30%. Data released by NSSO further reveals that cooperative societies which used to play and still play such a key role in disbursement of agricultural credit and other agri-inputs, do not serve more than 13% of farmer households in Uttar Pradesh. NSSO data reveal that in UP only 20% of farmer households included a member of a cooperative society and just 13% had availed themselves of services from a cooperative while at all India level, about 29% of farmer households included a member of a cooperative society and 19% had availed themselves of services from a cooperative. Most of these households availed themselves of either credit facilities or services related to seeds or fertilizers. Returns on Investment Despite the rise in the cost of all inputs like seeds, power, fertilizers, pesticides and water, farmers are selling wheat, corn, sugar and meat today at prices that are in reality half of those twenty years ago. Returns on investment are reducing further. Though retail food prices are significantly higher than ever before, over the past two decades, the prices of nearly all the major agricultural commodities declined in real terms, i.e. inflation adjusted or relative to movement in prices overall. A study conducted by UNCTAD reveals that upon comparison of the prices of agricultural raw materials and food and beverages in 2003 with 1980 prices show a drop of 60% and 73% respectively. From 1997 to 2001 alone, the combined price index of all commodities fell by 53% in real terms, that is commodities lost more than half their purchasing power in terms of manufactured goods. OECD forecasts show that in real terms rice prices are likely to remain flat over the next ten years while world wheat and maize prices are expected to continue their longer term declining trend. Real prices of oilseeds are also likely to remain flat as productivity and increase in acreage neutralize growth in demand. In the Indian context too it is clear that the returns on investment to the farmer is declining. In case of paddy and maize, the Minimum Support Price is less than the cost of production and in case of wheat, the MSP is only marginally more than the cost of production.

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Table 12: Production cost and Minimum Support Price of various crops in 2004-05 (Rs. per quintal)

2000 1500 1000 500 0 Prod. Cost MSP

Since paddy and wheat are the predominant Kharif and Rabi crops in Uttar Pradesh, there is urgent need to take a fresh look at this situation. It will be futile to expect the farmer to continue to grow paddy and wheat when his return on investment is negative. Case Study of a marginal farmer in Basrahiya Village
In village Basrahiya of Gosainganj Block, Lucknow District, the average size of holdings is about 1.5 acre. After holding discussions with a farmer who owned two bigha of land (0.5 hectares), it emerged that the farmer was making an investment of about Rs.12,200 for his Kharif crop in 3 bighas of land (two bigha owned by him and one bigha taken on bataidari) and the returns expected was only about Rs.20,800. This did not take into account the value of family labour put in by the farmer, his adult son and daughter in law. Thus, after almost 5-6 months of labour, his net returns was only Rs.8,600 which works out to only Rs.1720 per month. If the farmer and his family had worked as a wage labourer for 30 days, they would have earned Rs.1800 per person in a month @ Rs.60 / day. This only goes to illustrate that actual returns on investment from farming is negative for a large number of small and marginal farmers.

In case of Uttar Pradesh, data reveals that the Agriculture Parity Index of prices received and paid by the farmers has declined from 91.3 in 1984-85 to 87.7 in 2003-04. This is evident from the data in Table 13 below:-

Pa dd y W he at M ai ze Ar h M ar us ta rd G ra m

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Table 13: Agriculture Parity Index of Uttar Pradesh (Base year 1970-71=100) # Agricultural Year Index of prices received by the farmers Index of prices paid by the farmers Agriculture Index (Col.2/Col.3) Parity

1 2

1984-85 2003-04

260.4 1112.3

307.1 1268.7

91.3 87.7

Irrigation The proportion of net irrigated area to net cropped area has increased from 36.12% in 1966-67 to 54.89% in 1980-81 and 76.30% in 2001-02. However, the net irrigated area by private sources such as private tube well/ pump sets constitute nearly 87.09 lakh hectares, which is 68% of net irrigated area. There are 35 lakh private tube wells/pump sets in Uttar Pradesh of which about 28 lakh are diesel operated and 7 lakh electricity operated. Canal irrigation provides irrigation facilities to only 27.19 lakh hectares, which is about 21 % of net irrigated area. 28123 State Tube wells account for just 8% of net irrigated area. The share of different forms of irrigation in the State has been depicted in Table 14.
Table 14: Percentage area irrigated by different forms of irrigation in UP

Canal Pvt. Tubew ell State Tubew ell others

Area irrigated by canals has been continually declining over the years. Further water use efficiency in most irrigation systems is low in the range of 30-40 percent as against an ideal value of 60%. There has also been steady decline in water table due to over exploitation of ground water and insufficient recharge from rainwater. Declining trend of groundwater has been observed in 559 of 819 blocks in the State. Between 1987 and the year 2000, percentage groundwater used for irrigation has gone up from 30 to 57.31% for the State as a whole. It is also noteworthy that against created irrigation potential of 31063.73 thousand hectares, the actual utilization of potential was only 22404.48 thousand hectares in 200203. This lag of nearly 90 lakh hectares is a cause of serious concern. It could be due to several reasons such as non-construction of on-farm development works below the outlet, change in cropping pattern to more water intensive crops, loss in live storage due to sedimentation, low water use efficiency due to disrepair of the system etc. Heavy load of silt in river waters and thereby excessive siltation of the canals has reduced the carrying

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capacity of the canal system and hence there is decline of water use at tail end areas of the canals. Further, the irrigation potential created can be described as protective irrigation rather than assured irrigation. The difference in operating costs of canal irrigation and tube well based irrigation is in the ratio of 1:7 and rising cost of diesel is placing a heavy burden on the small and marginal farmers. Consequently, farmers only provide only that much irrigation as required to save the crop rather than meet the full requirement of water for the crop. Agriculture Extension The main extension agency is the State Agriculture Department. There is a separate Extension Directorate within the Agriculture Department. Department of Horticulture, Soil and Water Conservation and Watershed Development also have some extension workers. In the 1980s, the State implemented the World Bank funded Training & Visit system of extension. With external support drying up, the State began to dilute the rigour of T&V system and the 90s witnessed many States experimenting with new extension approaches. Currently, a number of organizations are providing extension services. These include State Agriculture Universities; Commodity Boards (Spices, rubber, tea, coconut, coffee etc.); Krishi Vigyan Kendras; non-governmental organizations; agri-business companies dealing with seed, fertilizer, pesticides, farm machinery; media firms etc. Since 1998, ATMA has been implemented in 28 districts of 7 States as part of a World Bank funded National Agriculture Technology Project. The Project provided for pilot testing the following innovations: Establishment of Agricultural Technology Management Agency (ATMA) as an autonomous agency at district level and below for technology dissemination Moving towards integrated extension delivery Adopting bottom-up planning procedures for setting the researchextension agenda Making technology dissemination farmer driven and farmer accountable Addressing gender concerns in agriculture Increasing use of information technology for effective dissemination Programme interventions are based on a strategic research and extension plan prepared in a participatory mode. Farm Information and Advisory Centres (FIAC) are created at the Block level to act as the operational arm of ATMA. A Block Technology Team, comprising technical personnel at the block level and a Farmer Advisory Committee comprising all key stakeholders and farmer representatives are also constituted at the Block level. Experience so far suggests that the integrated implementation of field activities is workable but depends considerably on the State Governments commitment to internalize and practice these new concepts. Further, internalization of diversification and intensification of different farming systems by ATMA is absolutely essential. BTT and FACs need to play a more active role in preparation of Block Action Plans and involve NGOs in forming farmer groups. It has also been seen that integrated package of exposure visit, training and demonstration results in better technology adoption. The obvious advantages of this system is the flexibility to quickly respond to training and 13

information needs of farmers, availability of a reasonably good untied operational budget and participation of farmers through FACs. However, the project suffered from weak process documentation and internal Monitoring & Evaluation system. Utilization of IT facility and progress in implementation of adaptive research through State Agriculture Universities and KVKs has not been up to the mark. Another innovation in agriculture extension is Agri clinics-agri-business centres. The main aim of the scheme is to provide accountable extension services to farmers through technically trained agricultural graduates at the village level. The programme is financed through bank loans and Government of India provides 25% of the cost as subsidy. It is proposed to establish 5000 agri-clinics to provide testing facilities, diagnostic and control services and other consultancies on a fee-for service basis. The programme has attracted nearly 16000 agri-graduates. 57 institutions are involved in this massive training programme. By end of 2002, 2853 graduates had completed or were undergoing training and 235 agripreneurs had started agri-clinics or agri-business centres undertaking a variety of agripreneurial activities in different parts of the country. There is urgent need to revitalize agricultural extension in the State and incorporate lessons learnt from States own experience in running UP Sodic Land Reclamation Project and UPDASP apart from those of other States such as Kerala, Rajasthan, Maharashtra, Punjab Agriculture University and agencies like ITC. Public private partnerships in agricultural extension in Madhya Pradesh
Madhya Pradesh was the first State in the country to have a private extension policy. The policy states that the private extension would aim for cost reduction, improving the efficiency of extension system and inculcating accountability in extension services. The first MoU regarding implementation of public-private partnership in agriculture was signed by the DoA with Dhanuka group for agricultural extension in Hoshangabad district of MP. Dhanuka is one of Indias leading group in crop protection business. The MoU aims to work together in areas like soil testing, training, farmers tours, demonstrations, transfer of technology through cyber dhabas, agriculture fortnights, establishment of markets and providing credit facilities to farmers. The achievements are as under: a. Soil Testing i. Handing over of the soil testing laboratory in Hoshangabad to Dhanuka. DoA meets the cost of chemicals and equipment and the group employs its own staff and meets their salary costs ii. Addition of 8 staff for field extension activities in the district by Dhanuka group iii. Four fold increase in the number of samples tested iv. Nine dealers centres of Dhanuka acting as collection centre of soil samples v. Faster and timely communication of soil test results to farmers The group considers this investment as way of improving its corporate image. Sponsorship or joint funding and implementation of extension programme provide them an opportunity to reach new customers. For the government, its participation with the group provides access to funds to supplement its limited operational budget and thereby improve programme coverage.

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Wastelands The total wasteland area in Uttar Pradesh is about 38.84 lakh hectares (about 14% of total geographical area) as per information provided by National Remote Sensing Agency. Sodic land cover 5.95 lakh hectare, Agricultural waste land 5.18 hectare and fallow lands about 16 lakh hectare. State Government has through the Sodic land Reclamation Project reclaimed about 1.5 lakh hectares and aims to reclaim another 1 lakh hectares through the Bhoomi Sena Project started in 2005-06. There is need to put this vast tract of wastelands to productive use. About 3.37 lakh hectare of sodic land and agricultural waste land are located in Bundelkhand, Allahabad, Mirzapur and Sonebhadra districts which are also home to some of the poorest sections of Uttar Pradesh population. Large tracts of wasteland in Kanpur and Agra divisions of the State can also be utilized for cultivation of bio-fuel such as jetropha. Jetropha has the potential to increase the income of about 500,000 farmers by about Rs.2400 2500 crore per annum in these areas. Sugarcane Uttar Pradesh is the largest sugarcane producing State in the country. It contributes 44% to the countrys total sugarcane production and is also the largest producer of sugar in the country. About 22.50 lakh hectare is under sugarcane cultivation and 1240.21 lakh tones of sugarcane was produced in the State in 2004-05. Average yield of sugarcane has increased from 54.40 tonnes per hectare to 60.65 tonnes per hectare in 2004-05. Details are given in Table 15 below.
Table 15: Data relating to sugarcane sector # Item 1 Area under sugarcane 2 Average production 3 Total sugarcane production 4 Operational sugar mills 5 Sugarcane processed 6 Sugar production Unit Lakh hectares Tonne/hectare Lakh tonnes No. Lakh tonnes Lakh tonnes 2000-01 20.54 54.40 1117.38 100 451.37 43.94 2001-02 21.52 57.85 1244.91 101 552.09 52.60 2002-03 24.04 55.96 1345.29 101 592.71 56.51 2003-04 23.04 54.98 1266.51 101 463.52 45.51 2004-05 20.45 60.65 1240.21 106 514.72 50.37 2005-06 22.50* 60.00* 1350.00* 115* 570.00* 55.85*

* estimated Farmers are receiving over Rs.6000 crore from the sugar mills as payment for sugarcane purchased by the sugar mills. This sector is contributing about 18% to the State Domestic Product from agriculture sector. By increasing productivity, there is scope to further increase the share of sugarcane to State Domestic Product from agriculture sector.

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Horticulture India is one of the worlds largest producers of farm commodities. Farm sector takes care of 69% of the population. At present, Horticulture contributes 28% of the agricultural income and 54% of the agricultural exports. The horticulture sector includes fruit, vegetables, spices, medicinal & aromatic plants, flowers, mushroom and a variety of plantation crops like coconut, arecanut, cashewnut and cocoa which has been contributing significantly to the GDP in agriculture (28.5 per cent from 8.5 per cent area).The Mission is in the process of being set up. The objectives of the National Horticulture Mission will be doubling the horticulture production, i.e. to achieve a production of 300 million tonnes by 2011-12. The present share of Uttar Pradesh in total horticulture production of the country is about 30% (48 million tonnes). In Uttar Pradesh, the National Horticulture Mission has been launched in 26 districts of the State. Presently, it is estimated that horticulture and sugarcane contribute 18.3% each to agriculture income in the State. Studies show that one hectare of land under horticulture creates 863 man days of employment while it is only 160 man days in case of cereals. Production of vegetables in UP increased from 0.96 million tones in 1991-92 to 13.5 million tones in 1998-99. Uttar Pradesh is the second largest producer of vegetables in the country after West Bengal. Significant increase in area under vegetables has been recorded on small and marginal farms. Studies have revealed that small and marginal farmers were diversifying a part of their land to extra short duration crops like vegetables to augment and stabilize their income over seasons. Further vegetable production engages more labour from vulnerable population groups such as women. It is also beneficial to soil health and utilizes water more efficiently in terms of both production and economic efficiency. In Eastern Uttar Pradesh and Central Uttar Pradesh, there is tremendous scope to increase vegetable and fruit production as in several districts upto 90% of farmers are small and marginal farmers and 70-75% holdings are of one acre or less. Potato Agri-Export Zone at Agra, Mango Agri-Export Zone at Lucknow and Saharanpur and a vegetable Agri-export zone at Lucknow have already been set up in the State.

Production of Fruits and Vegetables There has been tremendous increase in production of vegetables in the State as is evident from data in Table 16 below. Production of fruits has not increased as much. It is predominated by mangoes, guava, banana and Aonla.

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Table 16 : Production of fruits and vegetables in Uttar Pradesh

(in lakh tones)

400 350 300 250 200 150 100 50 0 96-97 97-98 98-99 99-00 00-01 2001-02 2002-03 2003-04

Fruits Vegetables

As regards productivity, there has not been much change in productivity of fruits in the State over the last decade. It has increased marginally from 100 quintals per hectare in 1996-97 to 125 quintals per hectare in 2004-05. Productivity of vegetables has increased from 160 quintal per hectare in 1996-97 to 171.10 quintal per hectare in 200203. Productivity of potatoes has increased from 230 quintals per hectare in 1996-97 to 260 quintals per hectare in 2004-05. It is useful to keep in mind that as per market information published by the National Horticulture Board (NHB) over 17% of fruits and vegetables produced in the country are marketed in 33 major markets within the country and out of these markets 43% is the share of four metros viz. Delhi, Mumbai, Kolkata and Chennai. Given the physical location of the State, Delhi, Kolkata and perhaps Mumbai could be potential markets for horticultural produce of the State.

Marketing of Horticultural Agri-produce Marketing of Horticultural Agri-produce in the State is regulated by the Krishi Utpadan Mandi Adhiniyam, 1964. The flow of produce from farmer to market varies with the type of produce and the distance to the market. There are at least 5-6 levels in the marketing chain in the State. These are as under: i. Small / Marginal farmer ii. Village level trader iii. Market level Commission Agent iv. Wholesaler v. Sub-wholesaler vi. Retailer

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In this long marketing chain, the farmer gets only 25-40% of the price paid by the consumer. Further value loss of the produce is estimated to be 30-40%. Different Studies show that the mark up in the chain is by as much as 344%.

Table 17: Mark-up in the Marketing Chain

#
Additional Cost Wastage Mark-up Price

Farmer

Trader 5% 10% 25% 125

Commission Agent 2.5% 5% 131

Wholesaler 5% 10% 50% 197

Retailer 10% 25% 75% 344

100

Major observations regarding the present marketing of horticultural agri-produce in the State are as under: The APMC Act discourages private initiative in setting up new marketing systems Present system is antiquated number of malpractices such as charging of commission by the Commission agents from both the seller as well as the buyers is in vogue. Markets are chaotic, unhygienic and poorly maintained Market Committees are unaccountable to the main users of the market Present system focuses on book-keeping. There is no cost or profit centre oriented accounting system Need for adoption of modern management system efficient and effective information system Government regulated agri-markets have not succeeded in either improving the efficiency in marketing of the produce or in prevention of exploitation of the farmer by the wholesaler/middlemen.

Animal Husbandry and Dairy sector The ownership of livestock is much more egalitarian than that of land. Livestock are particularly important in arid and semi-arid areas for strengthening household livelihood and food security. Dairy and poultry sectors are playing a key role in enhancing income and nutrition. India owns the largest livestock population in the world, accounting for nearly 57% of the world buffalo population and 16% of the cattle population. India was the largest producer of milk in 2002-03 with a total production of 86.4 million tones. During 2002-03, the livestock sector accounted for about 5.4 percent of the total GDP and 27.7 percent of the GDP from the agricultural sector. (Source: NABARD). Livestock sector produces 86.4 million tones of milk, 41.7 million tones eggs, 52.1 million kgs of wool and 4.94 million tones of meat.

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Livestock sector has grown impressively in the State. Annually, the State produces more than 16 million tonnes of milk and over 116 thousand metric tones of meat from buffalo and small ruminants. The value of livestock output, which was 17 percent of the total agricultural output in 1980-81 rose to 27 percent in 1999-00. This sector still has huge potential to raise income of small and marginal farmers. However, the productivity per livestock unit is too low in the State as compared to the potential. At present, the average milk production per day of cows is 3.035 kg and of buffaloes is 4.315 kg. The per capita per day milk availability in the State is 272 grams. Likewise, although Uttar Pradesh is the seventh largest producer of eggs in the country, only five eggs and 100 grams of chicken meat is being made available through domestic production while the consumption level is 18 eggs and 300 gram chicken meat per person per annum. Consequently, 40 lakh eggs and 2.20 lakh broiler chicken are being imported in the State every day from other States such as Andhra Pradesh. Thus, there is tremendous scope to raise production of eggs and chicken meat in the State. Details of production are as under:
Table 18 : Production of Milk, Eggs and Wool in Uttar Pradesh # 1 2 3 Item Milk Eggs Wool Unit 000 tonnes millions Lakh kg Tenth Plan target 193 968 20.81 Production 2003-04 2004-05 159.43 165.118 873.99 19.29 901.81 19.65

2002-03 152.90 842.04 18.84

2005-06 180.00* 922.00* 20.31*

* estimated In 2004-05, on an average 10.65 lakh kg of milk was being procured per day from 7.57 lakh members of 15686 Cooperative Milk Societies federated to 51 Milk Unions. In the Cooperative Sector, 4.60 lakh litres of milk was being sold per day in the State and another 5 lakh litres was being supplied to the National Milk Grid Mother Dairy and Delhi Milk Scheme. Remaining milk was being processed and sold in the market as milk products. However, there were 172 units registered under Milk and Milk Product Act 1992 in the Private sector with an installed capacity of 77.99 lakh litre per day. Most of these units were installed in western Uttar Pradesh as milk production in eastern Uttar Pradesh and Bundelkhand is still very low. There is huge potential to increase investment in these areas. Intensifying production and distribution of fodder and feed is urgently required as most of the dairy animals are stall fed. Fodder and Feed Banks operated by SHGs would help landless labour families to take to animal husbandry. Increase in yield of maize and soya bean as well as acreage under these two crops are needed to meet the feed requirement of the growing poultry and dairy business. Presently, the yield of maize is lowest in the world at 1.4 tonnes per hectare against world average of 4.2 tonnes. There is tremendous scope to increase maize production as Rabi crop in Eastern Uttar Pradesh. Fisheries India is the sixth largest producer of fish in the world and second in inland fish production. The fishery sector has also emerged as an important source of employment 19

generation. The fishery sector contributes 1.1 percent of the total GDP and 5.4% of the GDP from agriculture sector. Fish production reached a level of 6.2 million tones in 2002-03. This includes deep sea fishing. However, contribution of Uttar Pradesh to the total inland fish production of the country is not very high considering the size of the State and availability of water bodies. Uttar Pradesh has 11.52 lakh hectares of water bodies which can be potentially used for fisheries. Presently only 52.7 percent of total area covered by water bodies is being utilized for fisheries. In the year 2004-05, the State produced 2.77 lakh metric tones of inland fish while West Bengal produced 8.66 lakh metric tones and Andhra Pradesh 5.96 lakh metric tones. Based on the assumption that 50% of the States population is fish eating, per capita consumption of fish in the State was only 3.46 kg/annum whereas Indian Council of Medical Research has estimated an ideal per capita per annum consumption level of 13.9 kg. Thus there is tremendous scope to increase fish production in the State. The productivity level of fish production in the State in 2002-03 was 2700 kg/hectare/annum and it is proposed to raise this to 4000 kg/hectare/annum. This would still be below the productivity levels achieved in Punjab and some other States. It can thus be safely concluded that Uttar Pradesh is poised for blue revolution wherein production of freshwater fishery can be raised from 2.77 lakh metric tonnes to around 10 lakh metric tonnes with a clear policy of utilizing all water bodies and increasing productivity.

Strategy to revitalize the Farm Sector

First Report of the Farmer Commission The first Report of the Farmer Commission has identified the five basic factors central to present agrarian crises and these are: i. Unfinished agenda in land reforms ii. Quantity and quality of water iii. Technology fatigue iv. Access, adequacy and timeliness of institutional credit v. Opportunities for assured and remunerative marketing. It has also been observed that adverse meteorological factors and possible climatic changes tend to further accentuate the problem. The worst affected are small and marginal farmers, tenants and share croppers, landless agricultural labourers and tribal farmers since their coping capacity is very limited. Some of the recommendations made by the Farmer Commission with a view to revitalize the farm sector are as under: Ecologically sound agriculture is knowledge intensive. Information empowerment of farm men and women on agriculture and allied activities, as also knowledge empowerment on a variety of issues ranging from health, education, on-farm and off-farm livelihoods, enterprise development, market linkages and quality literacy is the need of the hour. This can be effectively done through a network of Rural/Village Knowledge Centres harnessing ICT

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and other modern tools of communication linkage with e-choupal, Lokvani centres, development under UPSWAN. Village Knowledge Centres under PPP Farmers Distress Call Centres in each State to provide timely and effective aid to farmers during periods of crises. Connectivity, Content, Capacity Building and Care & Management linkage with Panchayats. District level Content Consortium & Capacity Building Consortium can be set up. Beekeeping, vermicompost, production of bio-agents, tissue culture. Young graduates should be engaged in precision horticulture, e-trading, establishment and management of agri-clinics and soil and pesticide testing. The KVKs and ATMAs should also perform the role of Udyog Vigyan Kendras a post harvest technology wing should be added to each KVK to bridge the gap between production and post harvest technologies. Farm schools in the fields of farmer achievers identify at least two in each Block to begin with. Create pulses and oilseeds villages for specialized enhanced production (ensuring full availability of quality seeds and other specified inputs), efficient processing and remunerative producer-oriented marketing of the selected crops as well as the optimization of producing more crops and income from every drop of water by cultivating low water requiring crops. Crop-livestock; crop-livestock-fish integrated systems Convergence and synergy of all agricultural programmes around a watershed use remote sensing data for every district Dry farming areas have scope for doubling average yields immediately through addressing the deficiencies of micro-nutrients in the soil in addition to attending the needs for N, P and K.

At the Agri Summit 2005, it was recommended that New Deal to Rural India requires the following: i. Reversing the declining trend in investment in agriculture and allied sector ii. Stepping up credit flows to farmers iii. Increasing public investment in irrigation & wasteland development iv. Increasing funds for agricultural research & extension v. Creating single market for agricultural produce vi. Investing in rural healthcare & education vii. Investing in rural electrification viii. Investing in rural roads ix. Setting up commodities futures markets x. Insuring farmers against risks In short, agriculture has to move from sustenance farming to market driven farming with a view to maximize the returns for the farmer and making farming a remunerative, attractive occupation. It must be remembered that farm sector takes care of

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69% of the population. Further, the horticulture sector contributes 28% of the agriculture income and 54% of the agricultural exports at all-India level. It has also been suggested at the Agri Summit 2005 that taking into consideration the 24.03% contribution of agriculture to total GDP (2003-04), minimum 6.0% of the total GDP should be invested in agriculture & allied activities. The present level of investment by Government of India is around 3.8% of the Total Tenth Plan Outlay. The suggestions made by the Farmer Commission as well as the Agri-Summit 2005 need to be carefully looked into and acted upon as the problems and solutions are equally applicable to Uttar Pradesh. The State Government could evolve the following strategy to revive the Farm Sector in the State:1. Steps to improve self-esteem of the farmers: Scheme to publicly honour farmers who have achieved success in their sphere of action on lines of Yash Bharati. 2. Improve seed replacement rate: According to farmers, eleven hybrid varieties of paddy and about eight High Yielding Varieties of paddy are now available in the market. Farmers are presently using 25 to 30% hybrid seeds and about 70% HYV seeds in their fields. Farmers of Gosainganj Block in Lucknow district were of the view that if availability of hybrid seeds is increased, farmers would be willing to opt for them as apart from increased productivity, these have also been seen to be resistant to pests and farmers tend to save on cost of pesticides too. Further, Government agencies could also store and sell hybrid seeds to farmers as that would help to keep the market prices of these seeds in check. Hybrid seeds need to be replaced every year. Thus, improving availability and usage of hybrid seeds and ensuring replacement of HYV seeds after every three years could be an useful strategy for Kharif crops. For Rabi crops, efforts should be made to ensure seed replacement every third year by all farmers. 3. Improve extension activity in the State: Involve all stakeholders, including the following, for undertaking extensive agri-extension work in the State progressive farmers in all districts through Farm Schools; agri-input dealers; extension workers of fertilizer companies; Kisan Sahayaks; companies like ITC, DCM-Shriram; Cooperative Department; Sugar Cooperatives etc. Adoption of cafeteria approach in agricultural extension can perhaps deliver better results in the State. The strategy should be formulated for specific agro-climatic zones taking into account the strengths and weaknesses of the extension network in the area. 4. Scheme for increasing profitability of farmers with holdings of 1 acre or less : Provide various options regarding crop mix, choice of inputs, agricultural practices to the farmer with a view to reducing his input cost

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and increasing the value of his produce so as to ensure higher returns for the marginal farmer who are preponderant in the State. 5. Prepare various farm models for different types of farmers in different agro-climatic zones Small, marginal, medium and big farmers where thrust is on increasing income of farmers on a sustainable basis. Apart from proper crop mix with a view to increase productivity and income, the farm model would also include subsidiary activities like dairying, goatery, rural backyard poultry etc. so as to maximize returns for the small and marginal farmer. This would vary for different agro-climatic zones in the State. 6. Effective steps for restoring soil health Scheme for promoting balanced use of chemical fertilizers, pesticides etc., promoting use of organic manure, herbal pesticides, soil testing facilities at doorstep of farmers. As in case of Madhya Pradesh, Public Private Partnership initiatives could be taken in Uttar Pradesh.

7. Use Remote Sensing Data to prepare micro-plans for increasing crop intensity The NRSA is preparing a GIS based natural resource map for all the districts of Uttar Pradesh. This is likely to be completed by the end of this financial year. In these GIS maps, fields where presently only single crop is being cultivated and which are ideal for double cropping based on soil type, availability of water etc. are indicated and these could become the basis for detailed crop plan of these areas. 8. Optimize use of water for irrigation Success stories in the State like that of Basrahiya, Amethi, Shekhwapur, Daudpur and Sewapur in Gosainganj Block of Lucknow need to be replicated and propagated throughout the State. They have succeeded in taking water to the tail-end of the irrigation channel. They have witnessed a three-fold increase in their income from agricultural produce. Records of water purchased, sold and cost recovery are being maintained and big as well as small and marginal farmers are benefiting from the system. Preventing wastage of canal waters and adoption of better irrigation techniques should also be insisted upon. Further, Water User Groups could be authorized to undertake repair and maintenance of minors, sub-minors and field channels from the funds collected by them from the farmers. State Government could also consider fully giving up collection of irrigation dues and treat expenditure on construction and maintenance of canals as farm subsidy. Desiltation of canal system should be taken up under various programmes of the Rural Development Department. 9. Progressively reduce dependence on exploitation of ground water for irrigation Almost 80 percent of irrigation facility in the State is ground water based and about 28 lakh of 35 lakh existing tubewells are diesel

23

operated. This means high operational costs due to rising price of diesel apart from depletion in ground water levels due to over-exploitation. This strategy is not sustainable over the long term. Hence, public investment in surface irrigation schemes has to rise. 10. Promote cultivation of bio-fuel plants like Jetropha to increase income of farmers from non-productive land holdings and reduce input costs of diesel As per the National Bio-Fuel Mission, production of jetropha over 11.2 million hectares of wasteland would be required to produce adequate bio-fuel for meeting the requirement of 20 percent blending with High Speed Diesel by the year 2012. Keeping in view the large tract of wasteland in the State, it is essential that cultivation of jetropha is taken up on a big scale. Oil Companies like IOC, Bharat Petroleum have agreed to buy bio-diesel at the rate of Rs.25 per litre and procurement centres are being set up at Lucknow and Panki. This would ensure payment of Rs. 6-7 per kg of jetropha seed to the farmer and an income of Rs.20,000-25,000 per acre in case of dense cropping. The farmer would be able to produce about 150-200 litres of diesel from jetropha seeds even in case of fence cropping and this works out to a saving in input cost of about Rs.7000 per annum. This means increased profitability for the farmer. 11. Reform agri-marketing Introduce competition so as to ensure better returns to farmers for their agri-produce. Permission given by the State Government to ITC to set up e-chaupals and e-sagars in the State is a step in the right direction. Government could also think of introducing Rythu Bazars in the State on lines of Andhra Pradesh with a view to eliminating intermediaries and bringing producer and consumer face to face so that both stand to gain. The price of the produce is generally fixed 25% above the wholesale price and 25% below retail prices. 12. Improve availability of agricultural credit - The average credit extended to farmers in Uttar Pradesh is only about Rs.2000 per crop. This is grossly inadequate and cannot meet even the cost of seeds and fertilizers. 13. Implement scheme on pattern of National Horticulture Mission in remaining districts of Uttar Pradesh In view of the potential to raise farm income and provide employment, it is essential that horticultural activities are stepped up in all districts of Uttar Pradesh. Towards this end, State Government could consider taking up horticultural activities on the pattern of National Horticulture Mission in eight to nine districts in the State in 2006-07 and eventually extend it to all districts during the Eleventh Plan. 14. Increase capital investment in Dairy Sector There has not been any major capital investment in cooperative Dairy sector in the last ten years

24

or so. There is urgent need to modernize the existing infrastructure and make new capital investment with a view to doubling the capacity of the cooperative sector from 15 lakh litres per day to 30 lakh litres per day in the next two years. 15. Increase investment in Animal Husbandry sector Keeping in view the fact that the potential clientele of the Animal Husbandry Department covers nearly 1.60 crore rural households, there is need to focus attention on this sector. Productivity of cattle is extremely low and towards this end, following need to be focused upon improvement of cattle breed; prevention of Foot & Mouth disease; availability of quality cattle feed and fodder; promotion of rural backyard poultry, goatery etc. Schemes for training of Para vets could be extended and they could be made part of the vet nary service in the rural areas. 16. Increase investment in fisheries sector The State has good potential to usher in blue revolution. The large tract of unutilized water bodies should be harnessed for quadrupling fish production in the State. 17. Increase funding for agriculture universities Research activities in the sector has to be given a fillip and avenues for utilizing the capacity of Central Government institutions located in the State should also be explored. However, increased funding should lead to attainment of clearly defined outcomes in terms of crop yield, reduction in input costs, sustainability in the long term. 18. Introduce Health insurance schemes for farmers On the pattern of initiatives taken by Government of Karnataka, a public-private partnership model could be developed for providing comprehensive health insurance for heart diseases, cancer, urology, etc. requiring hospitalization in superspeciality hospitals to farmers. To begin with, the target group could be farmers who are members of cooperative societies sugar cooperatives, agri-cooperatives, milk cooperatives etc.

************ References: 1. Rural Economic Environment NABARD 2. Summary Report of Agriculture Summit April 2005 3. First Report of National Farmer Commission 4. Report of the Committee on India Vision 2020 5. Report of the National Bio Fuel Mission 6. Report of the Committee on Capital Formation in Agriculture 7. NSSO Reports 8. Mid Term Appraisal of the Tenth Five Year Plan of Uttar Pradesh

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9. 10.

Innovations in agricultural extension in India Rasheed Sulaiman V, ICAR Emerging Trends in Marketing of Agri-Produce Dr.S.P.Singh & Sanjeev Sharma

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