AGRICULTURE AND ALLIED ACTIVITIES
1.1.1 Agriculture and allied activities constitute the single largest contributor to the Gross Domestic Product (GDP), accounting for almost 33% of the total. They, are vital to the national well- being as, besides providing the basic needs of the society and the raw materials for some of the important segments of Indian industry, they provide livelihood for almost two thirds of the work force. The share of the agricultural products in the total export earnings, both in primary and processed forms, is very significant.
1.1.2 Over the last four decades, agriculture has made important strides in our country. It has been able to meet the growing demand of the increasing population for their essential need, namely food. The production of food-grains increased from 51 million tonnes in 1950-51 to 176.22 million tonnes in 1990-91. This has enabled the country to be, by and large, self-sufficient and to increase the per capita availability of foodgrains albeit slowly, from about 395 gm per diem in 1951 to 475 gm in 1990.
1.1.3 The population which as per 1991 census was about 844 million, has been increasing, though with a slightly lower growth rate and is expected to cross the billion mark in the early years of the next decade. Not only consolidation but also acceleration of agricultural production gains are critical for meeting the increasing demands due to the increase in population as well as due to improvements in incomes, particularly of the poor sections of the society. At the same time, it is necessary to ensure that the process of development is sustainable.
Seventh Plan Performance Review 1.2.1 Agriculture and allied sector outlays in the Plan, including forestry and wildlife, increased from Rs. 238 crores in the First Plan to Rs. 10,524 crores in the Seventh Plan. The share of this sector in the total outlay has fluctuated between 5.7 % in the Second Plan and 12.9 % in the Fourth Plan. Table-1.1 below brings out the fluctuations clearly:
Table 1.1 Public Sector Outlay for Agriculture Sector All India
(Rs. in crores)
Five Year 1St 2nd 3rd 4th 5th 6th 7th Annual
Plans 1951-56 1956-61 1961-66 1969-74 1974-79 1980-85 1985-90 1990-91
Agricultu 238 275 591 2059 3356 6440 10524 3803
re including
cooperati
on)
All Sector 2377 4800 8099 15902 39322 97500 180000 64717
Source : Agricultural Statistics at a Glance, March 1991
Directorate of E & S, Ministry of Agriculture.
1.2.2 Foodgrains: The average level of annual production of foodgrains during the Seventh Plan was around 155 million tonnes compared to about 138 million tonnes in the Sixth Plan. The performance of crop production during the Seventh Plan is reflected in Annexure-1. In the first three years of the Han, unfavourable weather conditions prevailed.In fact in 1987-88 the country witnessed a very severe drought with the foodgrain production plummeting to 140.35 million tonnes. With favourable weather conditions, the country reached a level of 169.92 and 171.04 million tonnes during 1988-89 and 1989-90 respectively and,in
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fact, achieved 176.22 million tonnes in 1990-91. The weather in 1991- 92 turned out to be indifferent and the food production is unlikely to touch the targetted level of 182.5 million tonnes. The foodgrains production performance indicates that the bulk of the increases has been coming essentially from improvement in productivity. Another salient feature of the performance has been that a much greater resilience has been achieved on the foodgrains production front. This is evident from the fact that the fall in the production level in the severe drought year of 1987-88 has not been as sharp as compared to the drop in production in the earlier drought years. Production of rice and wheat has been much better than coarse cereals and pulses. In the case of rice, the productivity level has reached over 1750 kgs/ha. -Another redeeming feature has been that the- contribution of the States in the Eastern region has improved during the Seventh Plan, indicating that the special thrust on rice production in Eastern India has, to a degree, helped to improve the rice yields and consequently the production. Nevertheless, the yield levels in many of the Eastern States continue to be below the national average. Wheat production has also been steadily going up and the trend has been maintained during the Seventh Plan. Wheat yield has increased to 2244 kg/ha. in 1988-89. The special Foodgrain Production Programme (SFPP) was launched in 1988-89, following the severe drought of 198788. The Special Rice Production Programme (SRPP) launched in Sixth Plan for Eastern India was merged with the Integrated Programme for Rice Development (IPRD). The thrust was essentially on not only improving the productivity in areas where the yield levels were low, but also on maximising production even in high potential areas. Later, the SFPP was extended to cover other principal cereal crops such as maize, jawar, bajra and ragi. These programmes, with emphasis on spread of improved technology, efficient delivery of inputs such as seeds, fertilizers, pesticides and popularisation of improved agricultural equipments contributed in some measure to improved production during 198889 and thereafter. The production of coarse cereals peaked to a level of 34.76 million tonnes during 1989-90, despite the area remain- ing almost stagnant at a level of around 38 million hectares. Increases have been primarily due to improvement in productivity. Nevertheless, the current low levels of yield of coarse cereals is a matter of major concern.
1.2.3 Pulses: Pulses are essentially grown under rainfed conditions and hence the production is widely influenced by the rainfall pattern. The production of pulses reached a record level of 14.06 million tonnes in 1990-91. This has been partly due to the increase in area of tur (Arhar). However, the productivity of pulses especially tur of about 779 kg/ha and gram of 753 kg/ha can be substantially improved. Major efforts were made to intensify pulse production by taking up the National Pulses Development Programme and the Special Foodgrain Production Programme Pulses. It was also decided to bring pulses under the Technology Mission during 1990-91.
1.2.4 Oilseeds: Production of oilseeds has shown substantial improvement during the Seventh Plan when it reached the level of 18.03 million tonnes in respect of principal oilseeds in 1988-89 and further increased to 18.46 million tonnes during 1990-91. The Technology Mission on Oilseeds was launched in 1986 with the objective of attaining self-sufficiency in edible oils. Apart from generation of appropriate technologies for maximising the oilseed production and their extension to farmers, the Mission also focussed on ensuring reasonable price to the producers through improved marketing as well as improving the processing technologies. The National Dairy Development Board (NDDB) was designated as the marketing agency for procurement, bufferstock operations and distribution of edible oil. An integrated oilseeds policy was adopted in 1989 to support the farmers with technology, inputs and remunerative price for their produce. This has resulted in significant increases in the area, production and yields of rapeseed, soyabean and sunflower. In many States, groundnut cultivation in the summer has been popularised. The area under coconut has shown steady increase and the production reached a level of 9283 million nuts. Red oilpalm, with its high oil content has been identified as a major potential source for the supply of edible oil in the country. The oil palm development scheme, implemented under the horticulture programme has been brought under ambit of the Technology Mission on Oil-
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seeds. The Department of Bio-technology and the ICAR have undertaken demonstration projects in Andhra Pradesh, Karnataka and Maharashtra.
1.2.5 Sugarcane: The sugarcane production has exceeded the target in the last three years of the Seventh Plan. Increased prices, over and above the statutary minimum price offered by the State Governments, have contributed to the expansion of the area under sugarcane production. A number of sugar factories has been established in both the traditional and non-traditional areas. Sugarcane development was undertaken by the sugar mills with the help of loans provided under the Sugarcane Development Fund, administered by the Ministry of Food. The production of cane reached a record level of over 240 million tonnes in 1990-91.
1.2.6 Cotton: In the Seventh Plan, the average production of cotton was 8.43 million bales with a peak production of 11.42 million bales, achieved during 1989-90 against a target of 10 million bales. The marketing prospects of cotton has significantly improved due to sustained export. The Centrally Sponsored Scheme of Intensive Cotton Development Programme was implemented during the Seventh Plan to im- prove the productivity of cotton in the major cotton growing states.
1.2.7 Jute and Mesta: The average production of jute and mesta in the Seventh Plan was 8.8 million bales. Inadequate availability of improved seeds and retting facilities are the main constraints to increasing the production of quality jute and mesta. Development of jute and mesta during the Seventh Plan was undertaken through a Special Jute Development Programme, funded by the Ministry of Textiles. Use of natural fibre as the packing material is on the revival trail and diverse jute products are now exported. The minimum support price policy to the farmers and the role of Jute Corporation of India (JCI) need to be reviewed for their effective operation.
Horticulture crops 1.3.1 A wide diversity of climate and soils provide conducive environment for growing a range of horticultural crops with great scope for employment generation. Presently, horticulture crops are grown in 12 million ha. (i.e.7% of total cropped area of the country), of which 2% is under vegetables. The production in horticulture sector is estimated at 100 million tonnes per annum, contributing to over 18% of the gross agricultural output in the country. India is the third largest producer of fruits after Brazil and U.S.A. In respect of vegetables, India is only next to China.
1.3.2 Mango, Banana, Citrus, Guava and Apple account for about 75-80% of production. Against the target of 28 million tonnes, fruit production has reached a level of approximately 26.08 million tonnes, with estimated average yield of 8 tonnes per hectare. Production of vegetables is estimated at around 53.88 million tonnes in the Seventh Plan as against a target of 40 million tonnes. Production of Coconuts, cocoa, cashewnuts and spices has increased.
1.3.3 The National Horticulture Board, the Coconut Development Board, the Arecanut, Spices and the Cashewnut Boards along with the Indian Spices Development Council, Indian Arecanut and Coconut Development Council, and the Indian Cashewnut Development Council, have played a significant role in the promotion of these crops.
1.3.4 Credit institutions like NABARD and NCDC have supported Post-Harvest Management of horticulture crops. Import of seeds and planting material of all horticulture crops has been permitted to improve the seed supply. Mushroom has also been given importance along with floriculture and medicinal plants.
1.3.5 During the Seventh Plan, a sum of Rs.21.94 crores was utilized for horticulture promotion implemented under ten schemes of National Horticulture Board, Coconut Development Board, Integrated Development of Tropical and Arid Zone Fruits, Development of Cashewnut, Arecanut, Cocoa etc. In 1990-91, the expenditure was Rs. 10.48 crores in respect of horticulture development schemes and for 1991-92 the approved outlay was Rs. 33.51 crores. Drip and sprinkler irrigation systems are being popularised for boosting production and productivity in rainfed areas.
Agricultural Inputs 1.4.1 Seeds :Many of the programmes initiated in the earlier years for increasing the avail-
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ability of quality seeds were continued in the seventh Plan. A new Seed Policy was announced in 1988 permitting the import of high quality seed and planting material after verification of the performance in the Indian conditions. The third phase of the National Seed Project supported by the World Bank was also launched. Except for some oilseeds like groundnut and linseed and a few of the pulses, by and large the targetted level of seed distribution has been achieved.
1.4.2 Fertiliser :The consumption of fertilisers (N + P + K) which increased from 5.5 million tonnes of nutrients to 8.2 million tonnes during the Sixth Plan further rose to a level of 11.3 million tonnes in the final year of the Seventh Plan. Programmes have been taken up to encourage the use of bio-fertilisers. Forty Blue Green Algae Sub- centres were established for production of algae culture through field multiplication programme under the National Project on Bio-fertiliser development. Five central sector schemes, including National Project on Development and Use of Bio-Fertiliser and National Project on Quality Control were implemented during the Seventh Plan. Schemes for Balanced and Integrated use of Fertiliser and a National Project on Development of Fertiliser Use in Rainfed Areas were introduced in 1990-91 and 1991-92 Annual Plans which are to be continued during the Eighth Plan.
1.4.3 Plant Protection : Though the use of pesticides in the country is relatively low, it was decided to launch an Integrated Pest Manage- ment Programme (IPM) based on the use of biotic agents for control of pests and taking up treatment based on need rather than as prophylatic action. Several biological surveillance stations were set up. The Integrated Pest Management has the objective of maximising the returns to farmers from their efforts to control diseases, and reducing the adverse effects of toxic chemicals. The IPM should become a major plank for effective pest management in the years to come.
1.4.4 Agricultural Implements and Machinery : Three Central sector schemes for Farm Machinery Training & Testing Institutes at Budni, Hissar and Anantpur were continued in the Seventh Plan. Efforts were also made to popularise improved agricultural implements. A beginning was made in 1991-92 to promote use of modern irrigation devices such as drip irrigation and sprinklers etc. As many as 637 Farmers' Agro Service Centres have been assisted during the Seventh Plan to provide custom hiring of improved agricultural implements and machinery.
Agricultural Extension 1.5.1 The main link between the farmers and the research workers is the extension personnel on whom rests the task of transfer of technology. The extension personnel regularly interact with the research system to get their knowledge upgraded, under the Training and Visit pattern of extension. The impact of extension activities has been varied in the country. Simple and meaningful reporting system could be evolved for improvement in monitoring the effectiveness of agricultural extension machinery. The World Bank assisted Agricultural Extension Projects, NAEP-I in the States of Madhya Pradesh, Rajasthan and Orissa, NAEP-II in the States of Haryana, Karnataka, Jammu & Kashmir and Gujarat and NAEP-III in Uttar Pradesh, Assam, Himachal Pradesh and Bihar have reinforced the training facilities for extension functionaries. A major agricultural extension effort has been to broadbase the extension activity i.e. moving away from narrow individual crop orientiation to farming system approach. This was initiated in the last year of the Seventh Plan.
Agriculture Credit 1.6.1 During the Seventh plan, disbursement of agriculture credit through cooperatives, commercial and regional rural banks increased from Rs. 5,810 crores in 1984-85 to Rs. 12,570 crores by 1989-90. The expansion in short-term, medium and long-term loans through cooperatives picked up only in the fourth year of the Seventh plan. The debt relief scheme, announced in 1990-91, affected the recovery climate resulting in a lower volume of credit flow. Several measures have been initiated by NABARD to increase the credit flow Separate lines of credit for oilseed grower were opened.
1.6.2 The Comprehensive Crop Insurance Scheme has been in operation since Khrif 1985. The General Insurance Corporation,act
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ing on behalf of Government of India, in collaboration with the State Governments, provide insurance cover to the farmers availing crop loans from cooperative credit institutions and banks for crops like paddy, wheat, millets, oilseeds and pulses. The premium rate to be paid by the farmers for rice, wheat and millets is 2% and in the case of oilseeds and pulses it is one percent. A subsidy is also provided by the State in respect of premium in the case of small and marginal farmers. Due to adverse climatic conditions and quantum jump in claims and heavy losses,the scheme was temporarily suspended in January,1988,but was re-introduced in September, 1988 with limited insurance to a maximum of Rs. 10,000 and 100% value of crop loan per farmer. The scheme currently in operation in 18 States and three Union Territories.
Cooperation : 1.6.3 Cooperatives are expected to play a major role in the distribution of inputs and services to the farmers on the one hand and in assisting marketing and processing of agricultural produce on the other. There are 76,000 fertilizer retailer outlets and 40 lakhs tonnes of fertilizer nutrients were distributed during 1989-90. The National Agriculture Cooperative Marketing Federation (NAFED) has undertaken price support operations in respect of oilseeds, coarse grains, pulses, potatoes and Marketing Federation exported 3,60,220 onions. The National Agriculture Cooperative tonnes of onions during 1989-90 which helped maintain the price line in domestic market.The NAFED also procured 6,022 tonnes of copra as price support operation.
1.6.4 Cooperative godown/warehousing capacity increased from 80 lakh tonnes in 1984-85 to 100 lakh tonnes by 1987-88. By 1990-91, 141 lakh tonnes of storage capacity had been created mainly in Punjab, U.P., Maharashtra, M.P., Karnataka, Andhra Pradesh and Himachal Pradesh. The NCDC was established in 1963 as an Organisation to plan, operate and develop the agricultural sector through cooperatives. Sustained efforts were made in promoting cooperative storage and processing units and in strengthening the cooperatives for distribution of inputs. -A storage capacity of 114.47 lakh tonnes had been completed under the-cooperative sector by 1989-90. In doing so, the Seventh Plan target for creation of additional capacity of 20 lakh tonnes had been exceeded by constructing storage capacity of 35.18 lakh tonnes. The NCDC promoted 239 cold storage units with capacity of 6.83 lakh tonnes of which 229 cold storages with 6.35 lakh tonnes capacity were installed. The capacity utilisation of the cold storages ranged between 80 and 100 per cent. The NCDC has so far promoted a total of 2442 number of processing units upto 1989-90.
1.6.5 The NCDC is presently implementing a World Bank assisted project called NCDC-III, under which a total assistance of Rs.575.67 crores has so far been sanctioned covering projects in the areas of storage, cotton spinning, oilseed processing, marketing of fruits and vegetables and training of project staff, etc.
Watershed Management 1.7.1 The National Watershed Development Project for Rainfed Areas(NWDPRA), initiated in the Sixth Plan, was continued during the Seventh Plan. Extensive changes were introduced in this major programme for the development of the rainfed agriculture during 1990- 91. It was also decided that Central assistance for the implementation of the programme should be liberalised with 75 per cent of the amount to be given as grants to the States and 25 per cent as loans. The NWDPRA envisages that a micro watershed will be taken up for development in every block having assured irrigation of less than 30 percent. In developing the micro watersheds, a holistic approach is to be adopted including, inter alia, the diverse production systems, be that seasonal cropping, perennials like horticulture, forestry or animal husbandry activities. Use of vegetative barriers is the principal means to prevent soil erosion and to conserve moisture. Arable, non-arable lands as well as the drainage lines will be treated in an integrated manner. To the largest extent possible, the programmes contemplate enrolment of beneficiaries both in planning for development and execution of various activities. Extension support through local progressive farmers is another critical element. Training of all concerned has been emphasised.
Soil and Water Conservation 1.7.2 During the Seventh Plan, schemes on soil conservation in the catchments of inter-State
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river valley projects, and the flood prone rivers, reclamation of alkaline (usar) soil, control of shifting cultivation and development of ravine areas were taken up. Soil and water conservation activity in 27 catchments taken up in 17 States covered 2.4 million hectares by the end of the Seventh Plan with a reported expenditure of Rs. 307 crores.
1.7.3 Watershed management schemes in the catchments of flood prone rivers are being implemented in eight catchments in seven States and one Union Territory. Upto the end of the Seventh Plan, 3.78 million ha. (10% of the priority area) have been treated at a cost of Rs. 91 crores. In view of the limited success of these programmes, these should be evaluated for cost effectiveness and replicability. People's participation should be encouraged and whereever possible, voluntary organisations should be engaged in such activities.
1.7.4 For the Central scheme of Control of Shifting Cultivation, Planning Commission extended assistance amounting to Rs. 52 crores to Andhra Pradesh, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Orissa and Tripura during last five years. It benefited 26532 tribal families.
1.7.5 Under Central scheme on Ravine Reclamation Planning Commission assisted Uttar Pradesh, Madhya Pradesh, Rajasthan and Gu- jarat on year to year basis w.e.f. 1987-88.
Animal Husbandry: 1.8.1 Animal husbandry is one of the important sub sector of agricultural economy and plays a significant role in the rural economy by providing gainful employment particularly to the small/marginal farmers, women and agricultural landless labourers. This sector also provides milk, eggs, meat, wool, hides and skin, dung, bones, hooves and draught power. Manures and slaughter house by-products are also sources of energy.
1.8.2 The contribution of the livestock sector has increased to about Rs. 27,700 crores in 1987-88 as compared to Rs. 10, 600 crores in 1980-81 which constitutes 25.5% of the total agricultural output. The animal husbandry sector has made good progress in the livestock production and health. Several schemes of the Seventh Plan period were restructured for more effective implementation.
1.8.3 Achievements during the Seventh Plan (year wise) and annual Plans (1990-91 & 91-92) are as under :
Table-1.2
Year Milk Eggs Wool
(mill. tonnes) (mill.nos.) (m.kgs.)
1984-85 41.5 14252 38.0
1985-86 44.0 16128 39.1
1986-87 46.1 17310 40.0
1987-88 46.7 17795 40.1
1988-89 48.4 18890 40.8
1989-90 51.5 20204 41.7
1990-91 54.9 21342 42.0
1991-92(a 57.5 22751 43.6
mt. ach.)