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What are the allied activities in agriculture and

allied activities ?

Agriculture is one word that encapsulates all of the farmer's activities.


Crops , poultry, livestock

The allied industries are all the small and medium enterprises that
depend directly or indirectly on the activity of Agriculture.

Its like a big homogeneous puzzle where all the pieces are interlinked
and interdependent. If you miss a few pieces the whole puzzle looks
incomplete.

And Agriculture is the whole theme and concept of the puzzle.

Let me put it the way i know.

Case study 1: PADDY

Paddy is the staple food of most of Indian population.

Paddy is a crop of almost 120 days.

Now lets see all the people depending on this one crop.

Paddy requries a lot manual labour.

So the labourers are fully engaged for tge whole of 120 days may it be
watering the fields, planting the saplings, applications of fertiliser,
pesticides, removal of weeds and the grass. Than the harvest starts by
cutting the crop, than bundling the whole crop , crushing the dry paddy,
separating the dry grass and the grains, weighing and baging the
grains.

The dry hay that is left after harvesting the grains is the staple food for
cattle.

The hay is also used in mushroom culturing.


By now you have the basic picture of Agriculture and the allied
industries.

Now as you see on good crop of Paddy provides not just the grains but
all the employment it creates directly or indirectly.

Case Study 2: Livestock- milk

Milk is the most important thing we start our day with or end our meal
with .
May it be in the form of Coffee, a glass of milk, yogurt, cream, curd,
cheese, paneer, butter etc.

Cows and Buffaloes are the main source of milk a small fraction of milk
is also produced by Sheep, Goats and camel but a fraction only.

The dairy industry depends solely on the cattle.

The farmer has to take good care of the cattle i.e. he has to feed them,
shelter them, take care of their health et al.

The feed of the cattle traditional consists of hay, oats and few other
local varieties of assorted grains depending on the climate and
agricultural produce.

There are also industries which produce cattle feed to boost their milk
production.

The milk is directly purchased by the milk factories which work as Co-
operative societies or also individual companies.

The milk is directly shipped to the nearest processing plant where it is


processed into
1. pasteurised milk
2. Low fat milk
3. Full fat milk
4. Cheese
5. Butter
6. Cream
7. skimmed milk
8. Paneer
9. Curd
10. Yogurt
11. ice cream
12. Milk powder.
13. Flavoured milk

Milk is also used in pharma sector by extracing caesin used in tooth


mousse

The workers and labourers working in the dairy farms.

The milking equipment, milk chilling tanks, The veterinary pharma


industry , Vet doctors

Like that there are a lot of People dependent on Agriculture directly


and indirectly.

Agriculture Sector

Agriculture and allied sectors are considered to be the mainstay of the Indian economy. They are the
important source of raw material and demand for many industrial products, particularly fertilizers,
pesticides, agricultural implements and a variety of consumer goods. They contribute nearly 22 per cent
of Gross Domestic Product (GDP) of India. About 65-70 per cent of the population is dependent on
agriculture for their livelihood.

'Agriculture and allied' industry is further divided into several segments, namely:- horticulture and its
allied sectors (including fruits and vegetables, flowers, plantation crops, spices, aromatic and medicinal
plants); fisheries sector; animal husbandry and livestock; and sericulture. India's varied agro-climatic
conditions are highly favourable for the growth of large number of horticultural crops, which occupy
around 10 per cent of gross cropped area of the country producing 160.75 million tonnes.

India is the second largest producer of fruits and vegetables in the world. It is also second largest
producer of flowers after China. It is also leading producer, consumer and exporter for spices and
plantation crops like tea, coffee, etc. While, sericulture is an agro-based cottage industry. India is
ranked as the second major raw silk producer in the world.

Fisheries sector occupies a very important place in the socio-economic development of the country. It is
a big source of employment opportunities for the large number of people in the country, especially rural
population. It has a huge export potential. Similarly, India has vast resource of livestock and poultry,
which play a vital role in promoting the welfare of rural masses. The Indian Dairy Industry has acquired
substantial growth momentum from 9th Plan onwards. India's milk output during the year
2006-2007 reached the level of 100.9 million tonnes (provisional), which has placed the country on top
in the world in this field.

The Ministry of Agriculture is the main authority in India for regulation and development of activities
relating to agriculture, horticulture, fishing, animal husbandry, etc. It is implementing various schemes
and policies for the sector through its divisions like 'Department of Agriculture and Cooperation' and
'Department of Animal Husbandry, Dairying and Fisheries'. Further, the Ministry of Food Processing
Industries is actively engaged in promotion of entrepreneurial activities in the segments of fish
processing as well as fruits and vegetables processing. Besides, commodity boards, like tea board,
coffee board, rubber board, medicinal plants board, etc. have been set up to boost the growth of the
sectors like tea, coffee, rubber, medicinal plants, respectively.

Hence, there exists innumerable business opportunities in the agriculture and allied sectors. Investors
from all over the world are making more and more investments into the sector for unleashing its existing
potentialities as well as for exploring the untapped areas.

Horticulture and Allied Sectors


'Horticulture and allied' sector is an integral element for food and nutritional security in the country.
Horticulture is the main segment, while its various sub-segments are fruits, vegetables, aromatic and
herbal plants, flowers, spices and plantation crops. All these are regarded as the essential ingredients of
economic security. The wide range of agro-climatic conditions of India is conducive for growing a large
variety of horticultural crops, including, root and tuber crops, mushroom, ornamental crops, plantation
crops like coconut, arecanut, cashew and cocoa.

The Government of India has recognized horticulture crops as a means of diversification in agriculture in
an eco-friendly manner through efficient use of land and optimum utilization of natural resources.
Horticulture seeks to create ample opportunities for employment, particularly for unemployed youths
and women folk. India has maintained leadership in the production of many commodities like mango,
banana, acid lime, coconut, arecanut, cashew, ginger, turmeric and black pepper. Presently, it is the
second largest producer of fruits and vegetables in the world.

India is next only to China in area and production of vegetables and occupies prime position in the
production of cauliflower, second in onions and third in cabbage in the world. India has also made
noticeable advancement in the production of flowers. Further, it is the largest producer, consumer and
exporter of spices. India is home to a wide variety of spices like black pepper, cardamom (small and
large), ginger, garlic, turmeric, chilli and a large variety of tree and seed spices. Almost all the States in
the country grow one or more spices. The major spice producing States are Andhra Pradesh, Tamil
Nadu, Odisha and Madhya Pradesh. North Eastern region and Andaman and Nicobar Islands also have
potential areas cultivated for spices, particularly organically.

Further, coconut is a versatile crop and about 10 million people depend on its cultivation, processing and
related activities. It is grown mainly along the coastal States of the country as well as in the North-
Eastern region. It is grown over an area of 1.84 million ha with a production of 8.67 million tonnes.
India is a leading country in the world for coconut production.

Thus, over the years, much progress has been made for the advancement of horticulture and allied
sector. Rising investments have resulted in increased production and availability of horticultural produce
in the rural and urban areas. Many schemes and policies have been introduced, from time to time, for
upliftment and commercialisation of the sector. Large number of investors are taking advantage of the
existing potentials in the sector, as well as trying to explore the untapped potentials.

Animal Husbandry and Dairying


Animal Husbandry and Dairying is a State subject and the State Governments are primarily responsible
for the growth of the sector. Dairying has become an important secondary source of income and
employment for millions of rural families. The Indian Dairy Industry acquired substantial growth
momentum from 9th Plan onwards, achieving an annual output of 97.1 million tonnes of milk during
2005-06. India's milk output during the year 2006-2007 reached the level of 100.9 million tonnes
(provisional). This has not only placed the country on top in the world, but also represents sustained
growth in the availability of milk and milk products for the burgeoning population of the country.

Government of India is making efforts to increase the productivity of milch animals and thus increase
the per capita availability of milk. Most of the milk is produced by small, marginal farmers and landless
labourers who are grouped into cooperatives at the village level. To provide them a steady market and a
remunerative price for the milk produced, about 12 million farmers have been brought under the ambit
of more than one lakh village level cooperative societies in the country.

Department of Animal Husbandry, Dairying & Fisheries , under the Ministry of Agriculture is responsible
for matters relating to livestock production, preservation, protection and improvement of stocks, dairy
development and also for matters relating to the Delhi Milk Scheme and the National Dairy Development
Board . It also looks after all matters pertaining to fishing and fisheries, which includes inland and
marine sectors and matters related to the National Fisheries Development Board.

The Department has been providing assistance to the State Governments for the control of animal
diseases, scientific management and upgradation of genetic resources, increasing availability of
nutritious feed and fodder, sustainable development of processing and marketing facilities and
enhancement of production and profitability of livestock and fisheries enterprises. State Governments
have set up separate departments which are responsible for development of animal husbandry and
dairying in the State

Fisheries
The 'fisheries and aquaculture sector' is recognized as the sunshine sector in Indian agriculture. It
stimulates growth of number of subsidiary industries and is the source of livelihood for a large section of
economically backward population, especially fishermen, of the country. It helps in increasing food
supply, generating adequate employment opportunities and raising nutritional level. It has a huge
export potential and is a big source of foreign exchange earnings for the country.

The 'Department of Animal Husbandry, Dairying and Fisheries' is the main authority for
development of fisheries' industry in India. It has been undertaking, directly and through the State
Governments and the administrations of the Union Territories, various production, input supply and
infrastructure development programmes and welfare-oriented schemes; besides formulating and
initiating appropriate policies to increase production and productivity in the fishery sector. Further, the
'Ministry of Food Processing Industries' is another main agency responsible for sound growth of fish
processing segment in India.

However, fishery is basically a State subject and the primary responsibility for its development mainly
rests with the State Governments. The major thrust in fisheries development has been focused on
optimising production and productivity; augmenting export of fishery products; generating employment
and improving welfare of fishermen and their socio-economic status.

Over the years, fisheries' industry is emerging and rapidly growing. This covers both capture and culture
including inland and sea, aquaculture, gears, navigation, oceanography, aquarium management,
breeding, processing, export and import of seafood, special products and by-products, research and
related activities. There exists several investment opportunities in the sector for the entrepreneurs world
over.

But, there are several challenges and issues facing the fisheries development in the country, such as,
accurate data on assessment of fishery resources and their potential in terms of fish production;
development of sustainable technologies for fin and shell fish culture; yield optimisation; harvest and
post-harvest operations; landing and berthing facilities for fishing vessels and welfare of fishermen; etc.
Thus, there is greater need to transform the sector by taking into account its achievements and
capabilities. The strong and sustaining ecological resource base, rational and pre-emptive policy, public
and private investments, good governance, etc holds the key for sustainable growth of the sector. The
fuller utilisation of its potential can be achieved through infrastructure, investments, technology
intensification, diversification and value addition. In a nutshell, various issues related to fishing activities
in India need to be addressed in a time bound manner with mutual understanding and cooperation
between public and private sectors.

Sericulture
Silk is a way of life in India. Over thousands of years, it has become an inseparable part of Indian
culture and tradition. No ritual is complete without silk being used as a wear in some form or the other.
Sericulture and Silk Textiles Industry is one of the major sub-sector comprising the textiles sector.
Sericulture is an agro-based cottage industry. Sericulture refers to the mass-scale rearing of silk
producing organisms in order to obtain silk. Sericulture is an agro-based labour intensive industry. The
major activities involved in a sericulture industry are:

1. Cultivation of silkworm food plants

2. Rearing of silkworms for the production of raw silk

3. Reeling the cocoons for unwinding the silk filament and

4. Other post-cocoon processes such as twisting, dyeing, weaving, printing and finishing.

Sericulture is one of the most labour intensive sectors, combining activities of both agriculture
(sericulture) and industry. India is ranked as the second major raw silk producer in the world. It is this
position along with its immense employment potential, that makes sericulture and silk, indispensable in
the Indian textile map.

Silk is a high value but low volume product accounting for only 0.2 % of world's total textile production.
It churns out value added products of economic importance.

India holds the monopoly on producing the Muga silk. It is the only one cash crop in agriculture sector
that gives returns within 30 days. Sericulture emerged as an important economic activity, becoming
increasingly popular in several parts of the country, because of its short gestation period, quick recycling
of resources. It suits very well to all types of farmers and exceptionally for marginal and small land
holders as it offers rich opportunities for enhancement of income and creates own family employment
round the year.

The Government of India (GOI) has concurrent responsibility for the development of the silk industry in
the country. At the Central level, Ministry of Textiles is the nodal organisation with 'Sericulture and Silk
Textiles Industry' as one of the principal functional areas.

There are several centrally sponsored schemes for promotion and development of sericulture sector ,
through which Government of India has been undertaking different activities like creation of sericulture
related infrastructure; development of nurseries and farms; expanding plantation areas; etc.
Current Scenario
Agriculture is the mainstay of the Indian economy because of its high share in employment and
livelihood creation. It supports more than half a billion people providing employment to 52 per cent of
the workforce. Its contribution to the nations GDP is about 18.5 per cent in 2006-07. It is also an
important source of raw material and demand for many industrial products, particularly fertilizers,
pesticides, agricultural implements and a variety of consumer goods.

Indias total geographical area is 328.7 million hectares, of which 141 million hectares is the net sown
area, while 190 million hectares is the gross cropped area. The net irrigated area is 57 million hectares
with a cropping intensity of 134 per cent. The total irrigation potential in the country has increased from
81.1 million ha in 1991- 92 to 102.8 million ha in 2006-07.

Productivity increase in agriculture is also considerably dependent on capital formation both from the
public and private sectors. Gross capital formation (GCF) in agriculture as a proportion to the total
capital formation has shown a continuous decline. GCF in agriculture relative to GDP in this sector has,
however, shown an improvement from 9.6 per cent in 2000-01 to 12.5 per cent in 2006- 07.

The overall production of foodgrains was estimated at 217.3 million tonnes in 2006-07. Between 1950-
51 and 2006-07, production of foodgrains increased at an average annual rate of 2.5 per cent compared
to the growth of population which averaged 2.1 per cent during this period. As a result, India almost
became self-sufficient in foodgrains and there were hardly any imports during 1976-77 to 2005-06,
except occasionally.

The increase in foodgrain production in 2006-07 was largely because of higher production of wheat by
6.5 million tonnes (9.3 per cent) and of pulses by 0.8 million tonnes (6 per cent). There was a decline in
production of oilseeds (3.7 million tonnes or 13 per cent) compared to the production in 2005-06.

The production of non-food crops, particularly sugarcane, cotton and jute (including roselle), in 2006-07,
however, exceeded both the targets and the levels achieved in the previous year.

During the year 2006-07 (up to 30 September 2006), the value of agricultural exports was worth Rs
28,157.52 crore as compared to Rs 21673.25 crore during April-September 2005. The share of
agricultural exports in total export was more than 10 per cent during April-September 2006. Agricultural
imports registered a decline during April-September, 2005. The share of agricultural imports in Indias
total imports showed a decline from 3.70 per cent to 2.88 per cent during the corresponding period.

India is the third largest producer and consumer of fertilizers in the world after China and the USA, and
contributes about 11.4 and 11.9 per cent to the total world production/consumption of NPK nutrients
respectively.Per hectare consumption of fertilizers has increased from 69.8 kg in 1991-92 to 113.3 kg in
2006-07 at an average rate of 3.3 per cent.

The rapid growth of agriculture is essential not only for self-reliance but also for meeting the food and
nutritional security of the people, to bring about equitable distribution of income and wealth in rural
areas as well as to reduce poverty and improve the quality of life. Growth in agriculture has a maximum
cascading impact on other sectors, leading to the spread of benefits over the entire economy and the
largest segment of population.

Policies and Incentives


Several significant initiatives have been taken in recent years by the Government in order to reverse the
downward trend in agricultural production. Some of these important initiatives include:

Bharat Nirman
National Rural Employment Guarantee Programme

National Horticulture Mission

Expansion of Institutional Credit to Farmers

Establishment of the National Bee Board

Establishment of the National Rainfed Area Authority

Establishment of the National Fisheries Development Board (NFDB)

Watershed Development and Micro Irrigation Programmes

Reforms in Agricultural Marketing and Development of Market Infrastructure

Revitalisation of Cooperative Sector

Agri-business Development through Venture Capital Participation by the Small Farmer Agri-
business Consortium

Reform and Support for Agriculture Extension Services

National Rural Health Mission

National Food Security Mission

Rashtriya Krishi Vikas Yojana to incentivise the states to invest more in agriculture

Integrated Food Law

Legislative Framework for Warehousing Development and Regulation

Protection of Plant Varieties and Farmers&rsquo Rights (PPVFR) Act, 2001

National Bamboo Mission and

Knowledge Connectivity through Common Service Centres (CSC) and IT initiatives.

Rashtriya Krishi Vikas Yojana (RKVY)

It was launched to incentivise the States to increase the share of investment in agriculture in their State
plans. It aims at achieving the 4 per cent annual growth in the agriculture sector during the Eleventh
Five Year Plan period by ensuring a holistic development of agriculture and allied sectors. It is a State
Plan Scheme and the eligibility for assistance under the scheme depends upon the amount provided in
the State budgets for agriculture and allied sectors, over and above the baseline percentage expenditure
incurred on agriculture and allied sectors. The funds under the RKVY are to be provided to the States as
100 per cent grant by the Central Government. The main objectives of the schemes are:

Incentivise the States to increase public investment in agriculture and allied sectors.

Provide flexibility and autonomy to the States in planning and executing agriculture and allied
sector schemes.

Ensure the preparation of plans for the districts and the States based on agro-climatic
conditions, availability of technology and natural resources.
Ensure that the local needs/crops/ priorities are better reflected.

Achieve the goal of reducing the yield gaps in important crops, through focused interventions.

Maximize returns to the farmers.

National Food Security Mission (NFSM)

It is a centrally-sponsored scheme, launched with the objective of increasing the production of rice,
wheat and pulses by 10, 8 and 2 million tonnes, respectively, over the benchmark levels of production,
by the end of the Eleventh Five Year Plan period. The Mission aims at increasing foodgrains production
of the above crops through area expansion and productivity enhancement; restoring soil fertility and
productivity; creating employment opportunities; and enhancing farm level economy to restore
confidence of farmers of targeted districts. It is being implemented in 305 districts of 16 States of the
country.

Various activities of NFSM relate to demonstration of improved production technology, distribution of


quality seeds of HYVs and hybrids, popularisation of newly released varieties, support for micronutrients,
and training and mass media campaign including awards for best performing districts. The identified
districts are given flexibility to adopt any local area specific interventions as are included in the Strategic
Research and Extension Plan (SREP) prepared for the agriculture development of the district.

National Policy For Farmers, 2007

Government of India has approved the National Policy for Farmers, 2007 taking into account the
recommendations of the National Commission on Farmers and after consulting the State Governments.
The National Policy for Farmers, among other things, has provided for a holistic approach for
development of the farm sector.

The primary focus of this policy is on farmer defined holistically and not merely on agriculture. In that
sense, it is much more comprehensive than an Agriculture Policy. The objective is, inter alia, to improve
the economic viability of farming through substantially improving net income of farmers. Needless to
say, there is emphasis on increased productivity, profitability, institutional support, and improvement of
land, water and support services apart from provisions of appropriate price policy, risk mitigation
measures and so on.

The major goals of the National Policy for Farmers are to:

Improve economic viability of farming by substantially increasing the net income of farmers and
to ensure that agricultural progress is measured by advances made in this income.

Protect and improve land, water, bio-diversity and genetic resources essential for sustained
increase in the productivity, profitability and stability of major farming systems by creating an
economic stake in conservation.

Develop support services including provision for seeds, irrigation, power, machinery and
implements, fertilizers and credit at affordable prices in adequate quantity for farmers.

Strengthen the bio-security of crops, farm animals, fish and forest trees for safeguarding the
livelihood and income security of farmer families and the health and trade security of the nation.

Provide appropriate price and trade policy mechanisms to enhance farmers income.

Provide for suitable risk management measures for adequate and timely compensation to
farmers.

Complete the unfinished agenda in land reforms and to initiate comprehensive asset and
aquarian reforms.
Mainstream the human and gender dimension in all farm policies and programmes.

Pay explicit attention to sustainable rural livelihoods.

Foster community-centred food, water and energy security systems in rural India and to ensure
nutrition security at the level of every child, woman and man.

Introduce measures which can help attract and retain youths in farming and processing of farm
products for higher value addition by making it intellectually stimulating and economically
rewarding.

Make India a global outsourcing hub in the production and supply of the inputs needed for
sustainable agriculture,
products and processes developed through biotechnology and Information and Communication
Technology (ICT).

Restructure the agricultural curriculum and pedagogic methodologies for enabling every farm
and home science graduate to become an entrepreneur and to make agricultural education
gender sensitive.

Develop and introduce a social security system for farmers.

Provide appropriate opportunities in adequate measure for non-farm employment for the farm
households.

State Departments
Agriculture being a State subject, it is the responsibility of the State Governments to ensure growth and
development of the sector within their respective State. Accordingly, separate departments have been
set up in several States, some of which include the following.

Department of Agriculture, Government of Maharashtra

Agriculture Department took up various land development activities with the enactment in 1942 and
subsequent enforcement of Land Development Act in 1943. For the first time in 1943, the then
Government prepared a comprehensive Agriculture Policy considering the problems in agriculture and
allied sectors. According to this policy, emphasis was given on use of water as irrigation for agricultural
crops. The department considers farmer as the focal point and the whole department is organized in
such a fashion that a single mechanism is working to facilitate the farmer for adoption of advanced
technology and sustainable use of available resources.

Department of Agriculture, Government of Himachal Pradesh

Himachal Pradesh is predominately an agricultural State where Agriculture provides direct employment
to about 71 percent of the total population. The Agriculture sector contributes nearly 30 percent of the
total state domestic product. The Department of Agriculture is dedicated to serve the farming
community by implementing various developmental programmes and disseminating the relevant
technology to increase productivity, production and profitability of field crops. The natural endowments
like soil, land, water etc. are being harnessed in such a way that cherished goals of ecological
sustainability, economic upliftment of farming community are achieved.

Department of Agriculture, Government of West Bengal

The department is concerned with activities relating to policy decisions on agricultural production and
productivity, its extension through technology generation, transfer of technology, ensuring availability
and timely distribution of agriculture inputs specially seeds, fertilisers, subsidy, credit etc. along with
support service through soil testing, soil conservations, water conservations, Seed testing, seed
certification, plan production, quality control of fertilisers and pesticides, etc.
Department of Agriculture, Government of Tamil Nadu

Agriculture continues to be the most predominant sector of the State economy, as 70% of the
population is engaged in Agriculture and allied activities for their livelihood. The State has as an area of
1.3 Lakh sq.km with a gross cropped area of around 63 L.Ha. The Government's policy and objectives
have been to ensure stability in agricultural production and to increase the agricultural production in a
sustainable manner to meet the food requirement of growing population and also to meet the raw
material needs of agro based industries, thereby providing employment opportunities to the rural
population. The Agriculture Department has taken up the challenge to achieve higher growth rate in
agriculture by implementing several development schemes and also propagation of relevant technologies
to step up the production.

Department of Agriculture, Government of Kerala

This department deals with the formulation and implementation of various programmes to augment
production of both food crops and cash crops in the State. It undertakes activities among farmers to
promote scientific methods of cultivation plant protection etc. and also arranges the supply of high
yielding varieties of seeds, seedlings, planting materials and plant protection chemicals to farmers. The
department also formulates policies and programmes relating to provision of credit to farmers.
Agricultural Research, Education and Extension are three important functions of the department. It runs
agricultural farms and also has an engineering wing.

Future Prospects

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