Indias Agriculture

Strategies to meet a 6% growth rate

Group 7
Sunil Kumar (140036)
Vivek Jaiswal (140027)
Amit Pandey (140042)
Rajendra Dhanavi (140016)
Pooja Anchan (140006)
Sweta Soni (140063)
Faculty
Prof. Kanan
Contents
Executive Summary
SWOT Analysis
Key Strategies
Challenges to Implementation
The way forward
Executive Summary
Advantage India
2
nd
largest Agricultural
Land
At 179.9 million hectares, India holds the second largest agricultural land in the
world. Of this around 60 million of land is irrigated.
Favorable Climatic
conditions
With 20 agri-climatic regions, all 15 major climates in the world exists in India. The
country also possess 46 of the 60 soil types in the world.
Record production of
food grains
Total food grains production in India reached an all time high of 259.32 million
tonnes in FY12. Rice and Wheat production in the country stood at 105.3 and 94.9
million tonnes respectively.
Largest producer of
major agricultural and
horticulture crops
India is the largest producer of pulses, milk, tea, cashew and jute; and the second
largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and
oilseeds.
Increasing farm
mechanization
India is one of the largest manufacturers of various farm equipment like tractors,
harvesters and tillers. India manufactures one-third of tractors in the world; the
number of tractors in the country is estimated to reach 16 million by 2030 from 4
million in 2012.
Executive Summary
Concerns
0
10
20
30
40
50
60
1950 1965 1976 1985 1991 1999 2009
% Share of agricultural output in Indias GDP
% Share
It is projected that India will need to grow its
agricultural output by 12% to feed its people in 2020.
Much of this has to come by growing more on the
same amount of land. This Land, however is
weakening and withering.
The Economic Times, 12
th
July 2011
Analysis of the Problem
Issue under study
India being an agricultural country, 70% of its population is employed in agriculture, although it
contributes only 13% to Indias GDP. With the years passing its share in Indias GDP is on the verge of
declination which would be a major threat to Indias economy. It is time to boost agricultural
productivity and to achieve prosperity.
The governments target are in the range of 4% and actual performance is even lower. In some states the
agriculture growth is more than 10%.

Objective
How can we achieve 6% + growth on annual basis in the coming years?
What strategies need to be adopted?

SWOT Analysis
Strengths
S W
O T
Large arable land area : 52% of the landmass as cultivable land as
against 11% in the world.
179.9 million hectares of arable land 60 millions hectares irrigated.
Variety of Climate Conditions (15/25 major climates, 46/60 soil
types)
Extensive network of agricultural research system.
Inherent agriculture competency
Sufficient availability of surface water
A hard population.

SWOT Analysis
Weakness
S W
O T
Lower productivity led agricultural growth.
Changing shares of Acreage and production of major crops/crop
groups.
Shift in production mix
Fragmental land holding
Declining input use efficiency
Depletion and degradation of land resources.
Inefficient management of nutrients
Handling losses (Poor storage especially cold storage capabilities)
Lack of access to formal credit schemes
Lot of intermediaries in back and front end supply chain

SWOT Analysis
Opportunities
S W
O T
Increase food exports
Venture into JV into Africa
Technological Development in Agriculture
Agricultural education
Bridgeable yield crops
Exports
Agro-based industry
Untapped potential in NE
Horticulture

SWOT Analysis
Threat
S W
O T
Chinese access to African markets
Food imports to India
Unsustainable resource use
Unsustainable Regional Development
Global warming
Production of inferior quality of crops
Dependence on rainfall
Rising input costs


Need Analysis for 6% increased agricultural growth
To Achieve
Boost Competitiveness of Indian agriculture
Enrich quality and status of natural resources
Develop eminent human resources to overcome challenges
Advance food security
Refine value addition and processing of food commodities
Proper risk management
Easy access to genetic resources
Enhance scope for comprehensive growth
Need Analysis for 6% increased agricultural growth
Impact Increase in prosperity
Self reliant
farmers
Increase in
output
Increase in
agricultural
share in GDP
Income security
Strengthening
global
competitiveness


Key Strategies - Implementation
Resource Management
Improved area under irrigation
Accelerated Irrigation Benefit Programme (AIBP) implemented by GOI need to be
replicated at massive scale.
Assured irrigation helps in bringing about a shift from mono-cropping to double
cropping or Multiple cropping, improvement in yield levels and shift in
areas/regions which hold the key to term output growth
Water and Water Quality Conservation
Watershed management
Inter-basin water transfer
Public involvement and capacity building
Flood control and protection works
Afforestation

Key Strategies - Implementation
Farmers Education and welfare
Educate farmers on best farming practices
Contribute to remove malnourishment and hunger in both rural and urban
areas
Empowerment of small farmers
Access to financial services like banks, insurance
Social welfare schemes to increase employment opportunities to empower
them
Farmers normally rely on farm saved seeds, which leads to low seed
replacement rate and poor yield. A central sector scheme for developing and
strengthening infrastructure facilities for Production and Distribution of
Quality Seeds


Key Strategies - Implementation
Infrastructure Improvement
Need for appropriate price incentives and reduction in fertilizer subsidy is the
need of the hour to encourage sustainable practice
Public spending on Research and Development to agriculture GDP in India is in
the range of 0.5 to 0.59. An Public Private partnership needs to be
implemented to improve spending
Bring in efficiencies, especially in food supply chains
Investment in logistic warehouses and cold storage
Direct procurement from farmers will likely result in higher prices for the
farmer and lower ones for the consumers
FDI in multi-brand retail would help bring in investment in warehousing,
storage capacities and improved logistics.

Key Strategies - Implementation
Resource Management
Water Conservation
Watershed management
Water quality conservation
Inter-basin water transfer
Recycle and re-use water
Public involvement and capacity building
Improve area under irrigation
Flood control and protection works
Afforestation


Key Strategies - Implementation
Value addition 3 steps
Economies of
Aggregation
Bargaining and claim
making power from joint
purchase, production and
sale

Simple Value
Addition
Cleaning
Drying
Grading
Packing
Storing
Transportation

Complex Value
Addition
Changing form, conversion
to products