Road-Map to achieve 4% growth from Agriculture and Allied Sector

1. Road-Map to achieve 4% growth from Agriculture and Allied Sector Dr. Rajiv Mehta Adviser Department of Agriculture and Cooperation Ministry of Agriculture National Conference on Agriculture for Kharif Campaign 3rd – 4th April 2007 New Delhi

2. 11th Plan Vision Broad Based, Inclusive, Faster Poverty Reduction, Bridge the Divide • Economic growth • 9 per cent overall Growth, • 4.1% growth from Agriculture and allied sector • This implies - Doubling the agricultural growth achieved during the 9th and 10th Plan, • Requirements • Address supply and demand side issues – Thrust on Supply, • Evolve state and crop/produce specific strategies , • Create non-farm employment opportunities in Rural areas • Take measures to improve farmers income

3. Major Growth Constraints Land • Natural Resources Already under stress, Water • Capital stock depletion and inadequate investment , • Declining resource use efficiency • Weakening Response to input use, • Persisting Gaps • Technology - Seed and Mechanisation • Knowledge deficit – Lab to Land , Region to Region, Farmer to farmer • Gaps in Institutional Support - research, extension, credit, marketing and risk mitigation.

4. Growth simulation - 11th Plan • Modest growth expectation from crop husbandry • Foodgrains growth more on consideration of essentiality • Supply to Meet Demand • Higher growth momentum needed with interventions and actions • in different crop segments • in different States and Regions.

5. Growth Drivers • Area Expansion • Yield improvement • Animal Husbandry • Fisheries • Institutional Support Services • Extension • Credit • Marketing and Post- harvest Management • Risk Management • Price Support System • Effective Programmatic Interventions needed • Improved Farmers Income

6. Growth Drivers – Area Expansion Issues • Decline in area sown, cultivable land • land for non-agricultural use on the increase • land degradation on the increase • Under BUSINESS AS USUAL Approach - Limited Scope to Expand Area • Special efforts required • Improve the land quality • Bring more area under cultivation • 25 Million HA old fallow and cultivable wasteland • Policy for operating the land for cultivation..

7. Area Expansion – Action Points • Land improvement • Crop specific approach - requirements for cereals, pulses and oilseeds • State wise area to be worked out • Bring 5 million hectare area (Net sown) under cultivation during 11th Plan • Re-claim alkaline, acidic, saline, ravines and water-logged areas • Cost ranges between Rs. 7,000 to Rs 50,000 per hectare • States need to identify such area (figures in million hectares) Other fallow - Major State with Other Fallow land - Raj (2.4), Tamil Nadu (1.8), AP (1.7), Mah( 1.2), • Cultivable wasteland - Major State with cultivable wasteland – Raj ( 4.5), Guj ( 2.0), MP ( 1.1), Mah (0.9) • Identify cropping pattern for such areas – a pre-requisite • Develop mechanism to provide common resources for irrigation , other inputs, mechanisation and post harvest and support services • To encourage PPP to promote more area under cultivation

8. Yield improvement Factors required to be addressed A. Soil Health and Nutrient Management B. Water Management C. Seed Management D. Farm Mechanization

9. Soil Health and Nutrient Management Yield stagnation due to soil health deterioration • depletion of organic matter and micro-nutrients • non-replenishment of required nutrients • unbalanced use of fertilizers. Action Points • Soil testing be made an integral part of development programmes / agricultural extension services (SAU’s, KVKs, ATMA, agri-clinics. • PPP initiatives - agri-clinics, agri-business ventures and contract farming. • Encourage greater use of non chemical fertilizers / manures and nutrients. • Provision and sale of bio fertilizers, compost, organic manure and micro nutrients through organized production systems.

10. Water Management- Issues • 40 per cent crop area under irrigation • assured as well as protective irrigation • 50% from ground water resources. • Ultimate irrigation potential - 140 million hectares (Gross) • 58.5 million hectares by Major and Medium • 81.4 million hectares by minor irrigation) • Potential created – 103 million hectare • Nearly 74 percent of ultimate potential tapped • Actual gross irrigated area - 77 million hectares • Cropping Intensity in Irrigated Area – 137 %

11. Water Management - Action Points • Target 10 million hectares new area under irrigation during 11th Plan • Bharat Nirman Programme • Bring another 5 million hectare under irrigation through improved utilization of the existing potential. • Four-fold approach • Replenish existing irrigation infrastructure, • Priority completion of incomplete projects • creation of new irrigation projects and • Effective distribution to ensure water reach to tail-enders. • Encourage Sprinkler, drip irrigation to ensure efficient use of water • Rainwater harvesting, aquifer recharge ( 7 million structures ) and watershed development • Harmonization of water charges with assured supply • Convergence of various programmes of water management and water use efficiency, implemented by different ministries / departments

12. Seed Management - Issues • Stagnation in productivity is due to lack of new / improved / certified seeds • No Visible Impact of Seed Technology on Productivity • Gaps between lab to land • Low SRR Seed management • Research and development of improved seed varieties, • Multiplication, • Distribution • Timely availability in cost efficient manner • Adoption by the farmers with appropriate farming practices.

13. Seed Management -Action Points • RE-ENERGISE and RE-ORIENT • Infrastructure, scientific strength and expertise available with the crop research institutions • Ensure timely availability of quality seeds and planting material, • Activate Public seed multiplication programmes • Promote PPP • Rejuvenate sick seed farms • Integration of farmers and farmers’ groups in seed multiplication programme • Focus on seeds and planting materials for horticulture crops • National Seeds Grid

14. Farm Mechanization Issues • Uneven spread due to demand supply mismatch • farm mechanization to be more wide spread – Example Eastern India, • Lack of adequate quality manufacturing of farm machinery and implements • Increasing female labour force participation • Lack of extension services for new technologies / implements • Lack of adoption of new technology Action Points Encourage availability of proven technology through indigenous manufacturing • Multiple certifications to be done away with to encourage competition • Relaxed duties on imports of farm machineries, equipments and technology

15. Animal Husbandry Some Observations • Crucial for stability of farmer’s income, • Impressive growth in the past • country is largest milk producer • fourth largest egg producer • Holds promise to grow at 6 %, during 11th Plan, • 5% from milk group • 10 % from meat and poultry group • Issues • Institutional and delivery weaknesses • Breed development • Small ruminants • Poultry • Piggery • Meat • Value addition and processing • Quality of the product

16. Fishery India - a major maritime / aquaculture country • third position in fisheries • second in aquaculture • resources, ranging from ocean to cold hill streams • own 10% of fish bio-diversity on the earth • 6 % growth in the 11th Five Year Plan feasible.

17. Institutional Support • Extension • Upgrading knowledge and skill of extension manpower • Farmer to farmer extension • Public-private partnership in agriculture extension • Expend / strengthen ATMA • Digitisation and dissemination of knowledge • Credit • Easy and hassle free credit availability • strategy for location specific investment credit • Smart Cards to meet multiple requirements. • long-term credit policy for farmers Contd.

18. Institutional Support– Contd. Marketing and Post- harvest Management • Developing rural market, modernizing existing market yards, setting up of private/ terminal markets, commodity specific requirements. • Post-harvest Management / Value Addition / Value Chain • Professional management of markets / private investment in marketing • Unified National Market Concept / tax / levy reforms • A stable export – import policy framework • Risk Management • Coverage • Simplification of Claims • Premium subsidy for Pulses , oilseeds

19. Programmatic Interventions Needs synergy • Between the central initiatives and the state initiatives, • Role and accountability in implementation of the scheme • Among initiatives taken by relevant departments and ministries of Central Government for • water management, • land development, • energy use • nutrient management etc.

21. States are requested to furnish their views on the following issues for formulating their growth targets for 11th Plan • Will it be feasible and sustainable for the respective States to achieve the growth rates suggested for each of the sub-sector? • If not, what will be the possible rate of growth for each of these sub-sectors? • Do the States envisage considerable change in the relative share of output of sub-sectors during the 11th Plan. If so, what are the specific steps/schemes which would contribute to such a change? • Based on an ABC analysis, which sub-sectors would they concentrate on during the 11th Plan to optimize the production?

22. Thanks Email rajivmehta2003@rediffmail.com