STRATEGIES FOR INCREASING AGRICULTURE INCOME DR. C. D. MAYEE AGRICULTURE COMMISSIONER Ministry of Agriculture

1. STRATEGIES FOR INCREASING AGRICULTURE INCOME DR. C. D. MAYEE AGRICULTURE COMMISSIONER Ministry of Agriculture

2. INDIAN AGRICULTURE- STRENGTHS • In India, 52% of total land is cultivable as against 11% in the World; • All 15 major climates of the World are in India. Snow bound Himalayas to hot humid southern peninsula, Thar desert to heavy rain areas; • There are 20 agro-climatic regions in the country • Nearly 46 soil types out of 60 in the whole world ; • Sunshine hrs and day length ideally suited for round the year cultivation of crops; • Largest technical / trained manpower and well organized research & education system ; • Agriculture contributes 24.2% to GDP, 15.2% of total exports and provides employment to 58.4% of country’s work force;

3. INDIAN AGRICULTURE- STRENGTHS –contd. • India is the mega centre for biodiversity in plants, animals, insects, microorganism and accounts for 17% animal, 12% plants and 10% fish genetic resources of the globe; • Ranks first in production of pulses, tea, jute & allied fibres; • Second largest producer of wheat, rice, groundnut, fruits & vegetables, sugarcane and third largest producer of mustard, potatoes, cotton lint, etc; • Wide array of aromatic and medicinal plants (> 10,000 species).

4. LIVESTOCK SECTOR - STRENGTHS • India has 16% of cattle, 57% of buffalo, 17% of goats and 5 % of sheep population of the world; • India is the largest producer of milk in the world with production of 84.6 million tonnes during 2001-02; • India ranks fifth in egg production in the world with egg production of 34.00 billion in 2001-02; • India ranks fourth in fish production and second in aquaculture in the world with a coastline of 8118 kms • Export of fish over Rs 6000 crores.

5. CURRENT PRODUCTION SCENARIO (2001-02) (million tonnes)

6. EXPORT OF FOOD GRAINS, OILSEEDS / OILS & HORTICULTURE PRODUCTS(‘ 000 tonnes)

7. EXPORT OF FOOD GRAINS, OILSEEDS / OILS & HORTICULTURE PRODUCTS(Value is Rs crore) Agriculture contributes between 13-16% to total national export

8. IMPORT OF FOODGRAINS, OILSEEDS/ OILS & HORTICULTURE PRODUCTS(‘000 tonnes)

9. IMPORT OF FOOD GRAINS, OILSEEDS / OILS & HORTICULTURE PRODUCTS(Value in Rs. Crores) Agriculture imports range from 5-8% of the total imports

10. CURRENT PRESSURES ON AGRICULTURE • Population growth - likely to reach 120 crores by 2011-12 • Stagnant Resource base • Diminishing and deteriorating water and land resource • Increasing biotic / abiotic stresses • Loss of bio diversity • Decline in Factor Productivity • Globalization and liberalization • Slow pace of mechanization

11. CONSTRAINTS OF LIVESTOCK SECTOR • Low level of investment (contributes 6.8% to total GDP while investment is 0.6%) • Disaggregate and unorganised form of activity • Inadequate infrastructure facilities • Lack of sanitary and hygienic conditions • Inadequate inputs and delivery system including health delivery system • Lack of extension services and facilities

12. NECESSITY ? • To raise Indian Agriculture’s growth rate to 4 per cent per annum • Ensure freedom to farmers to maximise income • Generate more employment and reduce poverty • Obtain Food, Livelihood and Nutritional Security

13. PRODUCTION PROJECTIONS 2011-12(in million tonnes)

14. PRODUCTION PROJECTIONS (contd) 2011-12 Horticulture (Million tonnes)

15. PRODUCTION PROJECTIONS (contd.) 2011-12 LIVESTOCK

16. Opportunities for Increasing Agriculture Production • Domestic Demand for cereals projected to 295 m tonnes by 2020 • Global Trade of Agricultural goods projected at US $ 640 billion by 2012 • Current level is marginal in World Trade ( 1.26 % of total in 2000)

17. Advantages unbound in increasing productivity & exports (1999-2001)

18. GENERAL STRATEGIES • REGIONALLY DIFFERENTIATED APPROACH • High productivity zone : e.g. Diversification, value addition • Low productivity, high potential zone : e.g. Enhance gross cropped area, farm supportive infrastructure • Low productivity zone: e.g. Water Management, soil conservation , INM • Ecologically fragile zone : eg. Sustainable alternate cropping, horticulture, agroforestry

19. RESOURCE MANAGEMENT

20. ACTIVITIES ENVISAGED • Water Management • Generation of Technology • Transfer of Technology • Farming Resource Management • Marketing & Storage Infrastructure • Post harvest Technology, Processing and Value Addition • Risk Management • Policy Issues

21. ACTIVITY/ PROGRAMME Completion of incomplete irrigation projects Reclamation of waterlogged areas Minor Irrigation Micro Irrigation T O T A L ADDITIONAL IRRIGATION COVERAGE ( m ha) 12 2 5 2 21 WATER MANAGEMENT-

22. FARM RESOURCE MANAGEMENT- • Increase in Seed Replacement Ratio from existing 12 % to 20 % • Increased supply of elite planting material, tissue cultured plantlets in plantation crops • Increase in IPM coverage from 5% to 15% of the cropped area • Increase in fertilizer use (NPK) from 91.5 kg/ha to 160 kg/ha • Increase in farm mechanization from 25% to 40% • Increase in credit flow growth rate from 18% to over 25%

23. TRANSFER OF TECHNOLOGY- • Expansion of area under hybrids eg rice ( 15 m ha), pigeon pea ( 1m ha), sunflower (1.0 m ha), safflower (0.5 m ha), maize (4.0 m ha) • Introduction and expansion of area under early maturing, high yielding inbred cultivars • Capacity building and strengthening of training facilities • Increased use of mass media - Agri channels, Agri-Clinics, IT etc. and private sector participation.

24. MARKETING AND STORAGE - Strengthening and Creation of : • Farmers Markets 7500 nos • Rural Storage 30.50 m tonnes • Cold Storage 8.50 m tonnes • Pledge Financing & Marketing Credit/year Rs 10,000 crore

25. TRADE VALUE INCREASE : NO BENEFIT TO FARMERS Total Increase 60-70 % • Farmers to wholesalers 30-35 % • Wastage 15-25 % • Transportation 10-12 %

26. POST HARVEST MANAGEMENT, PROCESSING AND VALUE ADDITION- CREATION OF ADEQUATE INFRASTUCTURE FOR: • Strengthening of Post harvest technology facilities • Processing facilities • Packaging facilities • Upgradation & development of processing technology • Establishment of cold chains

27. RISK MANAGEMENT- • 35 m ha area to be covered under watershed development • Reclamation of 12 m ha of degraded land for use in agriculture • Farm Income Insurance : Full coverageby 2011

28. POLICY ISSUES- • Crop Diversification • Agriculture Marketing Reforms • Promotion of Contract Farming / Land Leasing / Land Share Producer Companies • Expansion of Agriculture Credit • Remunerative prices to the farmers • Taxation reforms • Encourage organic farming for niche markets • Create adequate infrastructure for quality control certification to encourage exports

29. Sector-wise Incremental Capital Output Ratio (ICOR) under Different Sectors of the Economy

30. Global Ranking of India in Area, Production & Yield in 2000

31. Indian Farmer- A Centre Point of Development • Conservation of • Resources • Sustainable • Environment • More Profits • More Investments Natural Inputs Soil & Water Optimum Balance Enabler Hi-tech Agriculture Markets Indian Farmer Feedback Knowledge Technological Support • Better Productivity • Cost Savings • Improved Quality • Higher Value

32. THANK YOU