AGRICULTURE AND ALLIED ACTIVITIES

SECTION - 1

Overview

5.1 Significant strides have been made in ag- ricultural production since 1949-50. The de- velopment process could be seen as falling into two phases. During the period 1949-50 to 1964-65, the contribution to incremental pro- duction was largely from area expansion. par- ticularly under foodgrains which went up from a level of 992.8 lakh hectare to 1181.1 lakh hectare. However, thereafter there has been considerable deceleration of the growth rate in area and in the more recent years the area under crops has fluctuated between 1260 and 1280 lakh hectare, partly influenced by the annual variability in the rainfall pattern. In the later phase, it is the enhancement of productivity that has been primarily, responsible for addi- tional production. The introduction of high yielding dwarf varieties of paddy in the me- dium duration range and dwarf varieties of high yield potential in the case of wheat since the mid-sixties has brought about not only spectacular increase in yields, but also in pro- duction due to change in cropping pattern in several States in favour of cereal crops. This is also reflected in the changes in contribution of different regions to the total production.

5.1.2 Cropwise and broad region-wise the sig- nificant factors in regard to agricultural pro- duction and productivity can be summarised as under:

(i) Cereal production has significantly im- proved in the irrigated and agro climati- cally well endowed areas.

(ii) In the North Western States of India, namely Punjab, Haryana and Western U.P. the area increases in rice and wheat have been at the expense of pulses and oilseed crops.

(iii)Large contribution of additional rice pro- duction in many States, particularly West Bengal has been due to increase in the area under summer rice, where the yields are almost similar to Punjab, Haryana, etc.

(iv) In the peninsular states, there has been either stagnation in the area under cereals or even decline as in the case of rice crop in Kerala.

(v) Large fluctuations in area is a major feature of coarse cereals like jowar, bajra, ragi' etc. Yields have also been showing, large fluctuations, reflecting the rainfall pat- tern.

(vi) Wide fluctuations in prices, yields, etc have not been conducive for motivating the farmers to raise coarse cereal crops under irrigated conditions as witnessed from the insignificant proportion of the area brought under irrigation., except in respect of maize.

Strategy

5.2 The strategy for agricultural development in the Eighth Plan aims at not only achieving self-sufficiency in food but also generating surpluses of agricultural commodities for ex- port. Though the progress of agriculture in the period prior to the 8th Plan has been satisfac- tory, there are striking regional and crop im- balances. Productivity varies considerably from one region to another. The benefits of Green Revolution which remain confined, at present, to the north and north-west must spread to other regions, more particularly to the eastern and north-eastern regions which have adequate rainfall, fertile soil and vast scope for stepping up agricultural production. Since two-thirds of the cultivated area is still unirrigated, a more balanced regional develop- ment would call for a greater emphasis on dry land/rainfed farming. Even though the pro- gress in oilseeds production has been signifi cant, there is no room for being complacent, keeping in view increasing demand for edible oils. A concerted effort towards increasing oilseeds production is therefore essential. Ag- riculture and allied activities on which two- thirds of the workforce are still dependent must continue to receive a major emphasis in our planning effort.

Thrust areas

5.3 The main thrust areas identified during Eighth Plan period are as follows:

173

(i) Acceletrated growth in areas which have relatively lower growth - Primarily ef- forts in the Eastern India and hill regions will be required to concentrate on raising the productivity of principal crops in these regions through programmes initi- ated earlier with appropriate strengthen- ing.

(ii) Development of rainfed areas - Adoption of dryland farming system approach in the rainfed areas to make scientific and optimum use of land and water resources.

(iii) For small and marginal farmers, diversi- fication into other allied activities capa- ble of generating higher incomes such as animal husbandry and dairy, horticulture, both irrigated and unirrigated, sericul- ture, fisheries, agro-forestry, etc.

(iv) Increasing productivity in irrigated ar- eas - Effective water management through timely application of the mini- mum required volumes of water in the light of the prevailing climatic conditions and enhance productivity through dis- semination of improved technologies amongst the entire fanning community.

(v) Input Management - Efficient use of chemical fertilisers, recycling of organic wastes and use of bio-fertilisers have an important place in sustainable agricul- tural development and greater attention is to be paid to integrated pest management in tune with the environmental needs.

(vi) Marketing Infrastructure- The market- ing infrastructure to be further augmented and streamlined, especially in respect of perishable commodities for meeting the requirement of diversification and to en- able farmers to realise a fair share of the price paid by the consumers.

(vii) Expansion of agro-based industries - Efforts will be made for induction of lat- est technology in processing and better packaging so that the processed foods can compete in the international market, be- sides catering to the growing market within the country.

(viii) Enhanced agricultural exports - Apart from maximising production of the tradi- tional export commodities, efforts will also be directed towards producing non- traditional commodities like flowers and different types of vegetables for export on sustainable basis.

(ix) Role of Non-Governmental Organisa- tions - Peoples' participation and in- volvement of Non-Government Organisations (NGOs) will be given greater emphasis In areas like integrated development of rainfed areas on water- shed management principle, agricultural extension and Organisation of provision of services.

(x) During the Eighth Plan, emphasis is to be given on development of resources In agro-climatic zones, and their optimum utilisation in an integrated and sustain- able manner for constituent subsectors in the State plans covering activities in crop and non-crop sectors.

Approach for operationalising the plan strategies and thrusts

5.4 Taking into consideration the strategies and thrust included in die Eighth Plan and the various factors identified in raising produc- tion, the following approach has been evolved over time for achieving the desired results:

(i) Large potential still exists for enhancing productivity of crops like wheat and rice even in the regions like Punjab, Haryana, Uttar Pradesh, Andhra Pradesh (rice), Tamil Nadu (rice), where current yields are of the order of 3 to 3.5 tonnes per hectare (rice) through cultivation of hy- brids of rice and universalizing the level of adoption of technology in the entire region.

(ii) Several areas like Eastern U.P., Bihar, and Northern Madhya Pradesh have substan- tial scope for increasing wheat yields through better agronomic practices, say fertilizer consumption, where the present levels of application per hectare are very low. Early planting of wheat through ear- lier transplantation of preceding paddy crop, can assist in achieving higher yields.

(iii) There is a very large area under rice crop in the eastern parts of India, namely, east- ern UP, Bihar, West Bengal, Orissa, east- ern Madhya Pradesh, Assam as well as in Maharashtra. In these States summer rice crop has been producing very high order

174

of yields, almost at the same level as Kharif yeilds in north western region of the country. There is substantial, scope of increasing the area, under summer rice in several of the States through augmenta- tion of irrigation facilities, particularly exploitation of ground water resources in an optimal fashion. There is tremendous unexploited underground water potential in eastern UP, Bihar, West Bengal, As- sam, Orissa, etc. The utilisation of under- ground water can enlarge substantially the irrigated areas in these States.

(iv) A much more extensive network of rural electrification in many of the eastern States is necessary for proper utilisation of ground water resources.

(v) Fertilizer consumption is quite low in east- ern India compared to other States. Fertil- izer wholesale and retail distribution network arrangements will have to be expanded using public sector, coopera- tive and private trading channels. Unlike in the high consumption areas, risk of carry over of stocks can be substantial arising from fluctuating demands in the light of agro-climatic conditions, espe- cially aberrant rainfall pattern with con- sequent moisture stress conditions, floods etc. As a result these areas are not being able to secure adequate volume of sup- plies in time. For this the States' role should be to promote adequate stocking of fertilisers before the commencement of the principal crop season.

(vi) Seed replacement rates are low, nor is there adequate spread of high yielding varieties.

Programmes

5.5.1 Many of the programmes and schemes would be continued from the previous Plans with necessary refinement/modifications in keeping with the changing scenario of agricul- tural development in different areas of the country. The agriculture sector is expected to grow at an average annual rate of little more than 4 per cent in terms of gross value of output and 3 per cent in terms of value added.

5,5.2 Keeping in view the Eighth Plan strategy and thrust areas, a number of new initiatives were taken as well as some of the on-going schemes were redesigned. These are briefly highlighted:

5.5.2.1 Development of rainfed areas has been the top priority in agriculture development since the Seventh Plan, However, In the Eighth Plan, the priority has been matched equally with the fund allocations. In the Seventh Plan a new Centrally Sponsored Scheme of Na- tional Watershed Development Programme for Rainfed Areas (NWDPRA) was launched with an outlay of Rs. 239 crore, However, in the Eighth Plan, the scheme has been re-struc- tured and a provision of Rs. 1,100 crore has been made, Now greater emphasis is being given on peoples' participation and involve- ment of Non-Governmental Organisations in the implementation of watershed development plans. Out of 127 agro-climatic sub-zones in the country (as identified by ICAR), the NWD- PRA is being implemented in 1115 zones. Model watershed plans for 115 agro-climatic sub-zones have been technically approved. In all 2456 number of micro watershed projects covering an area of 3941 lakh ha. have been sanctioned and are at different stages of imple- mentation.

5.5.2.2 For increasing the productivity in irri- gated areas providing sustainability to crop production, the on-going Centrally Sponsored Schemes on Cereals and Commercial Crops have been modified from 1993-94/1994-95 with an objective of increasing overall produc- tion and productivity through development of Cropping system under crop based cropping system A component of sprinkler irrigation has been added as water saving device. Total Plan outlay of Rs. 1000 crore has been pro- vided for crop-oriented and related schemes.

5.5.2.3 For efficient use of chemical fertilizers programmes of balanced and integrated use of fertilizers (Rs. 26.01. crore outlay), National Project on Development of Fertilizer Use in Low Consumption Rainfed Area (Rs. 10.20 crore outlay) have been taken up during the Plan period. The National Project on Develop ment and Use of Bio-fertilisers has been given greater importance for better management of soil health with a plan outlays of Rs. 8.00 crore. The major thrust in the activities relating to plant protection has been on Integrated pest Management (IPM) having an Eighth Plan outlay of Rs, 45.00 crore and expansion of' plant quarantine facilities with an outlay of' Rs. 34 53 crore. These would help in reducing pesticides pollution and to regulate the import of commodities to prevent entry of exotic pests into India. Similarly, exporters would be

175

helped by providing necessary phytosanitary certificates.

5.5.2,4 In order to enhance agricultural ex- ports, a programme has been worked out under Export Enhancement programme for Horticul- tural Produce. Under this, the on-going schemes of Ministry of Agriculture, Com- merce and Food Processing Industries are be- ing coordinated with a view to boost the export of agricultural commodities by taking care of all aspects, from production to all necessary infrastructural needs. Horticulture develop- ment has been given a major thrust and against an outlay of Rs. 24 crore in the Seventh Plan, Rs. 1,000 crore has been provided in the Eighth Plan. A number of on-going schemes have been strengthened and new programmes have been launched to cover temperate, tropical and arid zone fruits, spices, medicinal and aromatic plants, tuber crops, mushrooms, vegetables, floriculture, etc. For better water management, large-scale use of drip irrigation in horticulture has been introduced. Tissue culture and Green House Technology have been encouraged with incentives.

5.5.2.5 In order to encourage involvement of people in transfer of technology, two new schemes have been initiated in 1994-95. A beginning has been made by way of two schemes, viz. providing, (a) Extension through Voluntary Organisations with an outlay of Rs. 1.00 crore and (b) Women in Agriculture, with provision of Rs. 1.65 crore.

5.5.2.6 In animal husbandry and dairy devel- opment schemes have been taken up related to (i) Milk and Milk Product Order having plan outlay of Rs. 1.00 crore, (ii) Technology Mis- sion on Dairy Development with a plan outlay of Rs. 44.00 crore and (iii)Integrated Dairy Development Project in Non-Operation Flood, Hilly and Backward Areas. The Eight Plan outlay for this scheme is Rs. 200.00 crore.

5.5.2.7 The ICAR-SAU system has given thrust and new directions in many production system areas, particularly in areas of horticul- ture research have been given. A new project on DNA finger printing has been initiated in 1994-95 to meet the requirements under post- GATT scenario.

5.5.2.8 A new scheme on 'Small Farmers Agri-business Consortium' with Rs. 5.00 crore plan outlay has been launched from 1994-95 to oversee the district plans in this respect.

        
                                                                Table 5-1
                              Targets of Area, Production and Yield of Principal Crops for 1996-97
                                                             Area in lakh hectare
                                                             Yield in Kg./hectare
                                                               
Sl. Commodity Output 8th Plan Annual Growth* No. Unit 1996-97 in Production
Area Prod. Yield (%)
1. Rice L.T.** 435.0 880.0 2023 3.95 2. Wheat 242.5 660.0 2722 3.34 3. Coarse Cereals 377.5 390.0 1033 5.40 4. Pulses 245.0 170.0 694 3.96 5. All foodgrains 1300.0 2100.0 1615 4.01 6. Oilseeds 245.0 230.0 930 5.62 7. Sugarcane 39.0 2750.0 70513 3.19 8. Cotton LB(170) 75.0 140.0 317 5.92 9. Jute & Mesta LB(180) 10.0 95.0 1710 1.09 10. Other Crops 237.0 11. All crops 1906.0
LB(170) = Lakh Bales of 170 Kg.each * Compound LB(180) = Lakh Bales of 180 Kg.each * L.T=Lakh Tonnes

176

        
                                                             Table 5-2
        
                                                         Targets of Key Inputs-Eighth Plan
                                                               
SI. Item Unit Plan Target 1992-97 No. (8th Plan)
I. Certified Seeds Lakh Quintals 70.00 Distribution II. Fertilizer Consumption i) Nitogenous Lakh tonnes 115.0 ii) Phosphatic 50.0 iii) Potassic 18.0 Total - N + P + K 183.0 III. Pesticides 000 tonnes 97.80 (Technical grade material) IV. HYV Programme i) Paddy Lakh hectare 339.0 ii) Wheat it 238.0 ii) Jowar 86.0 iv) Bajra 66.0 v) Maize 38.0 vi) Other (Ragi) 13.0 Total XYV 780.0
HYV = High Yeilding Variety Table 5-3 Central Sector Outlays for Agriculture & Allied Activities for the Eighth Plan (1992-97) (Rs in crore)
Sl. Sub-Head of 8th Plan 1992-93 1993-94 1994-95 1995-96 Approved Development Outlay Revised Revised Revised outlay Estimates Estimates Estimates
1. Crop Husbandry 4681 619.25 804.98 877.40 926.92 2. Soil & Water 800 80.58 102.97 124.26 125.00 conservation 3. Animal Husbandry 400 57.24 73.57 72.94 93.25 4. Dairy Development 900 148.97 273.59 261.95 250.00 5. Fisheries 400 84.33 106.31 104.04 111.15 6. Plantations 190 48.16 65.94 82.14 92.03 7. Food storage 424 79.36 60.74 65.77 67.80 Warehousing 8. Agricultural 1300 183.95 249.95 274.95 309.90 Research and education 9. Agricultural 234 99.89 92.64 341.00 476.38 Financial Institutions 10. Cooperation & 1550 215.30 210.82 342.93 350.60 credit 11 Other Agri- 100 305.12 135.55 41.36 7.25 cultural programmes
Total 10979 1922.15 2177.06 2588.74 2810.28

177

Targets and outlays

5.6.1 Targets for agricultural production in respect of foodgrains and some other impor- tant crops are presented in table 5-1.

5.6.2 The targets of key inputs for the Eighth Plan on the basis of which the production targets are to be achieved are shown in table 5-2:

5.6.3 The Central sector outlays for the Eighth Plan are given in table 5-3.

        
                                                   Table 5-4
                             Physical Targets & Achievements during Eighth Five Year Plan
                                                               (In Lakh Tonnes)
                                                         (Production of Cotton in lakh
                                                         bales of 170 Kg each
                                                         (Production of Jute & Mesta in
                                                               lakh bales of 180 Kg each.)
                                                               
Name of 8th Plan 1992-93 1993-94 1994-95 Crop Target Tar. Ach. Tar. Ach. Tar. Ach. (1992-93) (Likely)
1 2 3 4 5 6 7 8
1. Rice 880.0 772.5 728.6 780.0 789.7 785.0 810.2 2. Wheat 660.0 570.0 572.1 585.0 591.3 585.0 601.8 3. Coarse Cereals 390.0 342.5 365.9 360.0 309.2 365.0 308.2 4. Pulses 170.0 145.0 128.2 155.0 131.0 155.0 143.3 5. Total Foodgrains 2100.0 1830.0 1794.8 1880.0 1821.2 1890.0 1863.5 6. oilseeds 230.0 190.0 201.1 210.0 214.8 220.0 223.5 Sugarcane 2750.0 2430.0 2280.3 2500.0 2270.6 2500.0 2502.1 8. Cotton 140.0 120.0 114.0 125.0 107.1 125.0 116.2 9. Jute & Mesta 95.0 92.0 85.9 93.0 84.8 93.0 92.3

Performance in the first three years

5.7.1 Per capita availability of food grains increased from 395 grains per day(g.p.d.) in 1951 to 510 g.p.d in 199 1. However, thereaf- ter, it showed a decline, falling to 468 g.p.d. in 1992 and further to 464 g.p.d. in 1993. But it slightly improved to 474 g.p.d. in 1994. Pulses form an important segment of our staple food and are perhaps the main source of protein for vegetarians and for the poor in particular. There has been a reduction in per capita avail- ability of pulses; it has come down to 42 g.p.d. in 1991 from a level of 61 g.p.d. recorded in 1951 and 75 g.p.d. in 1958.It works out to 38 g.p.d. in 1994. Food supply is restrained by various factors like regional disparity in food crops production, low productivity of some crops, agro-climatic factors, input problems. etc.

Crop Production Performance -Targets and Achievements

5.7.2.1 Targets and achievements of produc- tion of major crops during 1992-93, 1993-94 and 1994-95 are given in table 5-4.

5.7.2.2 The first three years of the Eighth Plan have been marked by a fairly consistant level of agricultural production in the range of 18 to 18.5 crore tonnes with the production reaching a new peak of about 18.6 crore tonnes in the year 1994-95. Nevertheless, the incremental production has not kept pace with the targets set out for the Eighth Plan. While there has been some debate on the demand for food- grains, it is accepted that there is a substantial need for not only increased productivity per unit of land, but overall production of agricul- tural commodities, particularly foodgrains, keeping in view the growing population and improvement in per capita expenditure as the economy achieves a higher growth path.

178

Yield performance of Major Crops

5.7.3.1 The Eighth Plan targets and actual yields of principal crops during 1989-90 to 1993-94 are given in the table 5-5.

        
                                                       Table 5- 5
                                           Productivity of Principal Crops in India
                                                          (in kg. per hectare)          Name
                                                               
of 7th Plan 1990-91 1991-92 Projected 1992-93 1993-94 Crop 1989-90 for 1996-97
(1) (2) (3) (4) (5) (6) (7)
Rice 1745 1740 1751 2023 1744 1879 Wheat 2121 2281 2394 2722 2327 2373 Coarse 900 778 1033 1063 935 Cereals Pulses 549 578 533 694 573 584 Total food 1349 1380 1382 1615 1457 1487 grains oil Seeds 742 771 719 939 797 801 Sugarcane* 66 65 66 71 64 67 Cotton 252 225 216 317 257 248 Jute & 1646 1634 1662 1710 1658 1713 mesta * 000 Kgs.