Indian Agricultural policy

Agricultural policies
National Agriculture Policy 2000
Agricultural Price policy
Exim Policy2001
Marine Fishing policy 2004
National policy for farmers 2007
National seed Policy
National food processing policy 2002
Foreign Trade policy(2004-2009)
National Food and Biotechnology policy
National policy on threshing, storage and transportation of
food grains
National Agricultural Policy 2000
Vast untapped growth potential of Indian agriculture.
Strengthening rural infrastructure to support
agriculture development.
Promoting value addition
Growth in agribusiness by creating employment in
rural area, which improve standard of living.
Discouraging migration to urban area.
Policy focus
Sustainable agriculture
Food and nutritional security
Generation and transfer of technology
Inputs Management
Incentives for Agriculture
Investment in Agriculture
Institutional structure
Risk management
Management Reform
National Seed Policy 2002
Provision of appropriate climate for the seed industry
to utilize available and prospective opportunities,
safeguarding of the interest of Indian farmers and
conservation of agro-biodiversity
The policy visualizes a regulatory system which
encompasses quality assurance mechanisms coupled
with facilitation of a vibrant and responsible seed
industry.
Thrust area of Seed Policy
Varietal development and plant variety protection
Seed Production
Quality Assurance
Seed distribution and Marketing
Infrastructure facilities
Transgenic plant varieties
Imports of seeds and planting varieties
Export of seeds
Promotion of domestic seed industry
Strengthening of monitoring system
Agricultural Price Policy
Encouraging enhanced production by ensuring the
price of agricultural produce does not fall below MSP.
Ensure reasonable terms of trade between the
agricultural sector and nonagricultural sector.
Protect the interest of the consumer by ensuring that
the price don't fall below a certain level(PDS)
Stabilizing the price at a reasonable level.
Thrust Area
MSP
Input Subsidies
Buffer Stock
Procurement Prices
Issues Price
Public Distribution System.
National Food Processing Policy
Promotes between the two pillar of the economy,
namely Industry and Agriculture.
Growth potential of the sector is enormous bringing
benefit to the economy,rasing agricultural yields
meeting productivity, creating employment and rising
the standard of living in rural area. Due to LPG
Thrust Area
Creating Enabling Environment
Infrastructural Development
Backward Linkages
 Forward Linkages
Foreign Trade Policy 2004-09
Vishesh Krishi Upaj Yojana a new scheme for
promoting the export of
fruits,vegetables,flowers,minor forest product and
value added product.
WTO Agreement on Agriculture cover three broad
area of agriculture and trade policy
Market Access
Domestic Support
Export Subsidies
Marine Fishing Policy 2004
Is to augment marine fish production of the country
up to sustainable level to boost export of sea food from
the country.
To increase per capita fish protein intake of the
masses.
To ensure socio-economic security of the artisan
fishermen to ensure sustainable development of
marine fisheries with due concern for ecological
integrity and bio-diversity.
Thrust Areas
Marine fisheries resources
Harvesting of marine fish resources
Post-harvest operations
Resource management
Environmental aspects
Infrastructure Development for marine fisheries.
National Food and Biotechnology policy
Breeding new genetically modified varieties.
Effective control measures
Access of the science to all section of society
Environmental protection
National Policy on handling, storage and
transportation
To reduce storage and transits losses at farm level
where about 70% of the total food grains is consumed
to encourage scientific storage methods.
To modernize the system of handling, storage and
transportation of food grain procured by FCI.
To build and operate infrastructure for bulk handling,
storage and transportation of food grains in the
country by encouraging both public and private sector.
Thrust area
Policy For house-hold storage
Modernization and up gradation of grain handling
system.
Infrastructure status for bulk grain handling and
transportation
National Policy for Farmers,2007
Focus will be on the economic wellbeing of the farmer
in addition to production and productivity.
To ensure that farmer household in village either
possesses or has access to a productive asset or
marketable skill
Gyan Chaupals at village level with the help of ICT and
farm schools in the fields to promote farmer to farmer
learning would be set up through state government for
strengthening extension service.
Policy Shift In Agriculture
Internal Problems External
Dependence on Threats
monsoon, marginal
Opening up of
land holdings, high
cost of inputs, world
erratic input usages, markets,compet
inadequate itives scenario,
processing and
quality
marketing
infrastructure, orientation,
dispersed lack of
processing facilities professionalism
 New initiatives in the context of
Agriculture Development Strategy
for eleventh plan
New Initiatives
Strengthening Pulses Production Programs
Four pronged strategy on Agriculture Growth in the Budget 2009-10
 Agriculture Production
 Food Processing
 Credit
 Reducing Wastage of produce
Nutrient Based Subsidy effective from April 1, 2010 (Fertilizers and
Chemicals)
Rs. 100 crores for ‘Mahila Kisan Sashaktikaran Yojana’ as a sub
component of National Rural Livelihood Mission (Rural
Development)
Additional Central Assistance of Rs. 1200 crores to Bundelkhand
for drought mitigation (Rural Development)
Tax Concessions
 Modernizing Mandis or warehousing
 Concessional import duty of 5 % and service tax exemption for mechanised handling
of food grains and sugar in Mandis
 Central excise and service tax exemption to specified equipment for storage and
warehousing of agriculture products
 Promoting Cold chain infrastructure
 Concessional customs duty of 5 % with full exemption from service tax to setting up of
Cold storage facilities and Processing units for such produce.
 Provide full exemption from customs duty to refrigeration units required for the
manufacture of refrigerated vans or trucks
 Promoting Farm Mechanization
 Concessional customs duty of 5 per cent to specified agricultural machinery not
manufactured in India;
 Full exemption from excise duty to trailers and semi-trailers used in agriculture.

 Transportation of produce
 The transportation by road of cereals, and pulses to be exempted from service tax.
Transportation by rail to remain exempt.
Agriculture Development Strategy in the 11th five year
plan period

Agriculture Growth at 4 % plus

Food Security

Increased
public Support Services
investment
s
Increase production by bridging the yield gaps and by good price
Water, Energy and Land resources
 Schemes

Schemes Main Objective Salient Feature

RKVY and MMA Agriculture growth Full freedom to States

NFSM Food production Strategically targeted

ISOPOM Oil seeds production Strategically targeted

NHM and TMNE Horticulture End to end program

Micro Irrigation Water use efficiency Sprinklers and Drips

Small Farm
NREGS Water Harvesting
Development
Key Challenges
Sustained higher production levels of food grains
 More focused working especially for pulses
Regional disparity
 Widening the food basket
 Broad basing the risks of crop failure due to climatic variability
Rain fed area development
 Convergence – mechanism for horizontal working?
 Watershed management – Large scale replication of good models?
Risk mitigation for Climatic variability
 Integrated farming system for diversifying farm portfolio – horticulture, fisheries, dairy etc. Wadi project of
NABARD, Livelihood projects of World Bank?
 Seed Rolling Production Plans for quantity of needed varieties– Seeds Mission?
 Conservation Agriculture – National Mission on Sustainable Agriculture?
 Effective innovative weather based Insurance products – savings linked crop insurance?
 Increased buffer stocks for food grains – grain storage grid?
Efficient marketing supply chain
 Scientific storage and management – fungible warehousing receipts?
 Processing – private investments, logistics management?
 Direct marketing – credible contract farming mechanism?
 Union Budget 2010

4- pronged Strategy on Agriculture Growth

Agriculture Production

Rs. 400 Crores for Green Rs. 300 crores for 60,000 pulses
Revolution in Eastern Indian and oilseeds villages in rain- fed Ministry
Rs. 200 crores of Food
for conservation
agriculture in developed regions
Region areas Processing
Ministry of Food
and Consumer
Affairs
Ministry of Agriculture Ministry of Finance
Focus on Pulses and oilseeds
Strengthening NFSM Pulses
 Merger of ISOPOM for pulses with NFSM
 More funds – about 1000 crores in next two years

 Accelerated pulses production program (A3P)

 Block demonstrations of soil nutrient and plant protection centric technology in 1000
units of 1000 hectares compact block each for five major pulses with an outlay of 700
crores
 Provision for extension staff at unit level
 Inclusion of Jharkhand and Assam States
More funds available under ISOPOM for oilseeds development
Integrated development of 60,000 pulses and oilseeds villages in rain fed
areas with an outlay of 300 crores under RKVY
 Watershed management and water harvesting
 Community tanks
 Field channels
 Dry land farming
 Watershed plus activities for crop development
 Convergence with NFSM, ISOPOM, NHM, NREGA and NWDPRA
Inter
Rice
State Productivity Gaps Production in (‘000) tons Yield in kg/ha
2003-04 to
2003-04 2007-08 2008-09* 2007-08
State CAGR
Normal Max
Production Yield Production Yield Production Yield
Yield Yield
West Bengal 0.69 14662.3 2504 14719.5 2573 15554.0 2646 2550 2593
Andhra Pradesh 2.67 8953.0 3009 13324.0 3344 14207.0 3247 3080 3344
Uttar Pradesh -1.45 13018.8 2187 11780.0 2063 13074.0 2171 1986 2187
Punjab 2.13 9656.0 3694 10489.0 4019 11000.0 4022 3876 4019
Orissa 3.15 6733.7 1496 7540.7 1694 6762.0 1520 1540 1694
Bihar -5.07 5447.8 1523 4418.1 1237 5668.7 1610 1233 1523
Tamil Nadu 5.11 3222.8 2308 5040.2 2817 5201.0 2510 2783 3423
Chattisgarh -0.14 5567.6 1454 5426.6 1446 4391.8 1176 1353 1454
Assam -1.77 3880.0 1534 3319.0 1428 3775.0 1720 1448 1534
Karnataka 2.54 2550.3 2375 3717.0 2625 3690.0 2434 2846 3868
Jharkhand 4.45 2310.0 1695 3336.4 2018 3304.9 1947 1628 2018
Haryana 5.16 2790.0 2749 3613.0 3361 3298.0 2726 3072 3361
Maharashtra 0.67 2835.0 1853 2996.0 1903 2311.0 1506 1729 1903
All India
1.45 88526.0 2078 96692.9 2202 99153.7 2186 2101 2202
CAGR** 1.05                
Eastern Region Development
Additional Rs. 400 crores provided for the agriculture development in Eastern
Region comprising of Eastern UP, Chhattisgarh, Jharkhand, Bihar, Orissa, West
Bengal
Funds would be released under RKVY. States are expected to prepare an action
plan containing the following points
 Identification of key technologies, constraints in development and inter se
priority for implementation for visible impact
 Situation report on current initiatives, preparation of multi year strategy for
agriculture development in sync with the DAPs by pooling the resources from State
plan, and convergence with other ongoing schemes
 Preparation of projects to implement the strategy in a budget proposal worked out
by each State
 Allocation of budget for each State as per the proposal and approval of projects
within an overall budget allocated for each State
 Mechanism for regular monitoring of the progress of implementation of the projects
Detailed set of instructions would be prepared in consultation with the States
for implementation from the Rabi season
 Agri eco Zone wise Regional Strategy
Lower Gangetic Plains Region
(WB other than Purulia
and hill districts)
 Basically a rice mono cropped area
 Increasing the cropping intensity
by
utilizing Rabi fallows after harvest of
Kharif rice by promoting the cultivation of
pulses and oilseeds
 Diversification of upland rice areas
which are less productive to suitable
crops like pulses, oilseeds and millets.
 Development of on-farm irrigation
resources through exploitation of
ground water potential which is
abundant.
 Improving subsurface soil drainage
Middle Gangetic Plains Region
(Eastern U.P. and Bihar)
 Rice, wheat, sugarcane are the major
crops. However, productivity is low.
 Popularization of Short duration high
yielding varieties/hybrids of rice.
 Promotion of maize cultivation
especially in Rabi as it has high
potential
 Promotion of early maturing varieties
of sugarcane for higher sugar recovery
 Development of on-farm irrigation
resources thorough exploitation of
ground water potential
 Cattle rearing, poultry, goat rearing
and fish farming as an off farm activity.
Agri eco zone wise Regional Strategy
Eastern Plateau & Hills Region (Parts of
Orissa, Jharkhand, Chhattisgarh) East Coast Plains & Hills (Part of
Orissa)
 Management of rainwater  Rice is the lead crop in this zone.
harvesting and storage for However, the productivity is low.
increasing crop productivity High yielding varieties for water
 Promotion of High yielding logged areas and upland areas
varieties/hybrids especially that of needs to be propagated
rice  Discouraging the cultivation of rice
 Expansion of area under High in marginal lands and diversifying
value cash crops and vegetables in favour of oilseeds and pulses
 Improvement in seed supply so as  Utilization of rice fallows for
to increase the SRR increasing the cropping intensity.
 Improvement in productivity of  Rice-fish culture
crops in acidic soils through lime  Improving soil drainage
treatment
Sum up
Emphasis on Pulses through revamped programmatic
interventions and prevailing good market price should
help in achievement of production targets of pulses
Focus on Eastern Region that has huge potential
would help macro level stability of agriculture
production
Enabling policies on market development would bring
in private investments for value addition to the
harvests and efficiency gains in supply chain
New initiatives Better targeting
and delivery of services
Implementation is the key

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