YEAR END REVIEW

 

Mega Schemes to Get Higher Fund Allocation

 Farm Credit Target Raised to rs.7,00,000 Crore

 

 

 

The year 2013 has been significant for Indian agriculture.  The production of foodgrains is likely to reach record level; in a year in which other economic parameters have not been too encouraging, agriculture growth is likely to surpass the target of four percent.

 

Public Investment in the farm sector has gone up and States are constantly being incentivized to come up with new schemes.  Credit flow to the sector is increasing year after year.  Strategies adopted at the beginning of major cropping seasons for ensuring quality seed and fertilizer are paying dividends.  Time bound crop-specific initiatives have been taken and special plans drawn up for new areas with potential for higher yield.  Such initiatives have resulted in resurgence of Indian agriculture that is helping the country not only meet the rising domestic demand but also earn precious foreign exchange.

 

INDIAN AGRICULTURE AT A GLANCE

·         Agriculture continues to be the backbone of Indian economy.

·         Agriculture sector employs 58.2% of the total workforce.

·         Agriculture’s share in India’s exports increased to 13.08% in 2012-13 from 12.81% in the year 2011-12.  India’s share of global agri-food product export is 2.1% as per International Trade Statistics 2012.

·         India is largest producer of milk, pulses, livestock, jute, jute like fibres, tea and cauliflower.

·         India is second largest producer of wheat, rice, fruit, sugarcane, groundnut and tobacco.

 

AGRICULTURAL PRODUCTION AND GROWTH

·         Against a target of 4% growth over the 11th Plan period, we have achieved a growth rate of 3.64%. Target of Agriculture sector growth remains at 4% during 12th Plan period.

·         The 11th Five Year plan has seen an increase in total food grain production of over 173.38 million tons over the 10th Five Year Plan period.  This is despite two years of drought in various parts of the country in 2009-10 and 2010-11.

·         The target of food-grains production for 2013-14 is 259 million tonnes.

·         The production of Wheat and Rice during 2013-14 is expected / targeted to be 92.50 million tonnes and 105 million tonnes respectively.

·         The production of pulses during 2012-13, as per 4th Advance Estimates is at the record level of 18.45 million tonnes. The target for 2013-14 is 19 million tonnes.

·         Overall increased production is reflected in the stocks with FCI. Against the buffer norm of 21 million tonnes as on 1st October, 2012 we have a stock of more than 66.5 million tonnes. From a position of having to import about 6 million tons of wheat in 2006-07, the country today has become a net exporter of wheat and rice.

·         Due to special initiative of the Ministry, an area of around 15 lakh hectares has been brought under summer pulses.

·         Cotton production in India has increased 3.5 times in a span of a decade and reached a peak of 35.20 million bales in 2011-12. (1 bale= 170 kgs) as compared to 8.6 million bales in 2002-03. During the same period productivity has increased from 191 Kg/ha to 491 Kg/ha. Cotton production is estimated at record level of 35.30 million bales in 2013-14 as per 1st Advance Estimates.

·         As per 1st Advance Estimates the production of sugarcane in 2013-14 is expected to be 341.77 million tonnes as against the target of 340.00 million tonnes.

·         MSP of major crops such as paddy, wheat and pulses have increased by more than 100% between 2004-05 and 2013-14.

·         The strategies for rejuvenating agriculture sector to achieve 4% per annum rate of growth have been working which is seen by the fact that estimated growth in the Agriculture & Allied Sectors during the 11th Plan (3.64%) is higher than that achieved during the 9th Plan (2.5%) and 10th Plan (2.4%).

·         As per CSO, the agriculture and allied sector had grown at 1.9% during 2012-13. As per estimates released by CSO on 29.11.2013, the first half (April to September) of 2013 agriculture sector registered a growth rate of 3.6%.

·         Gross Capital Formation (GCF) in agriculture and allied sectors as a proportion of the GDP in the sector stagnated at around 14% during 2004-05 to 2006-07. During the year 2010-11 and 2011-12, the GCF has been 18.4% and 19.8% respectively.

·         The Plan outlay of DAC increased from Rs.15,000 crore in 10th Five Year Plan to more than Rs.60,000 crores in the 11th Five Year Plan and further increased to Rs.1,34,746 crores during 12th Five Year Plan.

·         There has been substantial increase in production of fruits and vegetables in recent years. Production of fruits during 2012-13 is estimated at 77.7 million tonnes as against 76.4 million tonnes during previous year and production of vegetables during 2012-13 is estimated at 159.5 million tonnes as against 156.3 million tonnes during previous year.   Per capita availability of fruits and vegetables has increased to about 174 gms/person/day and 346 gms/person/day respectively in 2012. 

·         Under the Grameen Bhandaran Yojana, while the target for XI Plan was to create storage capacity of 90.00 lakh MT, the achievement was 150% higher at 135.01 lakh MT. During current year, capacity of 42.93 lakh MT has been sanctioned so far.

·         The flow of agriculture credit in 2011-12 reached Rs.5, 11,029 crore (as against target of Rs. 4, 75,000 crore) from a level of Rs.86, 981 crore in 2003-04.  As against the target of agriculture credit for 2012-13 of Rs.5, 75,000 crore, the achievement during the year has been Rs.6, 07,375 crore.  For the year 2013-14, the target of agriculture credit flow has been increased to Rs.7,00,000 crore. During the year 2012-13, (as on December, 2012), 500.79 lakh farmers were financed by the banking system, out of whom 309.28 lakh farmers were small and marginal. Kisan Credit Cards are being converted into SMART cards to facilitate its operations through ATMs.   There were 12.03 crore active KCCs in the country as on 31.03.2013.  

·         To make cheap agriculture credit available to farmers for short term crop loan, incentive of additional interest subvention increased to 3% for farmers who repay their loan on schedule thus making the effective rate of interest @ 4% only.

 

EXTENSION REFORMS

 

·         ATMA scheme has been extended to 630 rural Districts in the country. 

·         SMS Portal has been launched on 16.07.2013 for disseminating topical and seasonal advisories to farmers using the language of the State.

·         Under the scheme of Kisan Call Centres, a country wide common eleven digit number ‘1800-180-1551’ is available to provide replies to the queries of the farming community  from all the States/ UTs in 22 languages from 6.00 A.M. to 10.00 P.M. on all 7 days of the week.

 

AGRICULTURAL INPUTS: FERTILIZERS & SEEDS

    

·         The overall availability of fertilizers and seeds in the country is satisfactory. Consumption of fertilizers during 2011-12 was about 144.59 kg per hectare.  Certified quality seeds production has increased from 140.51 lakh quintals in 2005-06 to 347.31 lakh quintals in 2013-14.

·         National Seeds Corporation has introduced 44 newer varieties in the production chain to improve the product basket.

·         A central Sector Scheme “Development and Strengthening of Infrastructure Facilities for Production of Distribution of Quality Seeds” is being implemented for improving quality of farm saved seeds through Seed Village Programmes to enhance seed replacement rate, boosting seed production in the private sector, helping public- sector seed companies to contribute to enhancing seed production. Under this scheme, 78,943 Seed Villages have been organized and 116.71 lakh qtl. of various seeds produced during 2012-13. 2.10 lakh qtl. of seed processing capacity and 8.07 lakh seed storage capacity has been created during 2012-13.

·         In order to make available good quality of fertilizer at affordable price to farmers, and bio-fertilizer, sulphur coated urea, fortified fertilizers and  12 customised fertilizers, general specifications of organic manure have been incorporated in Fertilizer Control Order (FCO), 1985.

·         Fertilizer subsidy accounts for about 37% of all subsidies of the Central Government put together.           

           

 

 CHANGES IN CROPPING PATTERN

·         Total planted area under major crops (foodgrains, oilseeds, cotton, and sugarcane) has increased by around 9 per cent since 2000-01 to 170 million hectares in 2011-12, reflecting increased irrigation availability leading to increased cropping intensity.

·         Area under pulses was stagnant between 2003-04 and 2009-10 and increased in the past two years with the rising prices inducing higher production and support from programmes, such as, the National Food Security Mission.

 

12TH PLAN

·         51 schemes being run at present in DAC are being restructured into five Missions, five Central Sector schemes and one State Plan scheme (RKVY) in order to have more focused approach and to avoid overlap and would be implemented in restructured form w.e.f. 2014-15.

 

RECENT INITIATIVES

·         Rs. 200 crore has been allocated in FY 2013-14 to start pilot on nutri-farms for introducing new crop varieties which are rich in micro-nutrients e.g. iron rich Bajra, protein rich maize, zinc-rich wheat.

·         Rs. 500 crore has been allocated during Financial Year 2013-14 to start a programme of crop diversification in the original green revolution states which face the problem of stagnating productivity and depleting water resources due to over-exploitation.  It would promote technological innovation and encourage farmers to choose crop alternatives.

·         The scheme for ‘Replanting and rejuvenation of Coconut Gardens’ has been extended to the entire State of Kerela for which additional plan allocation of Rs. 75 crore has been provided in the year 2013-14.

·         Recognizing the need to encourage Farmer Producer Organisations (FPOs), matching equity grant to registered FPOs upto Rs.10 lakh per FPO has been announced in the budget 2013-14. For this, Rs. 50 crore has been provided. In addition, a credit guarantee fund has also been created in SFAC with initial Corpus of Rs. 100 crore.

·         PPP for Integrated Agriculture Development: This has been launched as a pilot scheme under RKVY with the objective of augmenting governmental effort in leveraging the capability of private sector in agriculture development.

MANAGING NATURAL CALAMITIES

 

·         In view of deficit rainfall situation in some parts of the country during Kharif-2012, Government of India took several proactive measures to mitigate hardships to farmers. Notable among these are fast tracking release of funds to drought affected States under National Rural Drinking Water Programme (NRDWP) and Integrated Watershed Management Programme (IWMP), implementation of Diesel Subsidy Scheme to offset the cost of diesel used by farmers for pumping water to provide supplementary and protective irrigation to standing crops in drought affected areas, enhanced ceiling on subsidies on seeds of cereals, pulses & oilseeds and coarse cereals, reducing rate of interest on rescheduled crop loans in drought notified areas, additional allocation under Accelerated Fodder Development Programme (AFDP), providing loans at 7% interest for drought mitigation interventions in perennial horticulture crops, enhancing subsidy on feed & fodder, provision for additional wage employment upto 50 days per household beyond 100 days to households registered in drought affected talukas/blocks, additional allocation under National Horticulture Mission (NHM) for rejuvenation of horticulture crops in drought affected districts etc. In the wake of drought in States of Karnataka and Maharashtra, Government has approved assistance of Rs. 1304.15 crore from National Disaster Response Fund and Rs. 14.20 crore from Special component of National Rural Drinking Water Programme to these States.

EXPORT 

·         Export of most of the agricultural commodities has been made free without any quantitative or Minimum Export Price (MEP) restrictions.  Since 07.07.2012 export of Basmati is free without any MEP.  India’s agricultural exports increased from Rs.120, 000 crore in 2010-11 to Rs.187,000 crore in 2011-12.  The share of agri-export in total exports increased from 10.47% in 2010-11 to 12.81% in 2011-12.  During 2012-13, agri-export has been about Rs.231,992 crore, a record level which is 13.08% of India’s total exports.

·         India’s global agri-food products export is 2.1% as per International Trade Statistics 2012.

 

 

MP: SS: CP: year ender agri (31-12-2013)