INTRODUCTION

AGRICULTURAL

SECTOR IS THE BACKBONE OF OUR COUNTRYS DEVELOPMENT

65%

OF POPULATION IN INDIA DEPEND UPON AGRICULTURE

DEVELOPMENT

IN AGRICULTURE IS EXPECTED TO INCREASE BY 4% IN NEAR FUTURE

POLICIES NEED TO BE RELOOKED,RE-DEFINED AND RE-WRITTEN
AGRICULTURE PREVAILING

SHOULD BE TURN AS A PROFIT MAKING BUSINESS

WHY THIS TOPIC?

AGRICULTURE HELPS TO PROMOTE NUTRITION AND HEALTH IT PROMOTES HUMAN DEVELOPMENT GROWTH RATE TO BE RAISED IN AGRICULTURE SECTOR TO MAKE OUR GROWTH TO BE INCLUSIVE ALSO TO INCREASE THE STANDARD OF LIVING OF THE FORMERS AND THEIR FAMILIES DEVELOPMENT OF THE NATION ARE ALSO TO BE NOTICED

ANNUAL GROWTH RATE AND SHARE OF AGRICULTURE AND ALLIED SECTOR IN GDP AT 1999-2000 PRICES
YEAR 2000-2001 2001-2002 2002-2003
ANNUAL GROWTH RATE SHARE IN GDP

0.0 5.9 -5.9

26.2 26.2 23.8

2003-2004
2004-2005

9.3
0.6

23.9
22.4 21.7

2005-2006 5.8 (QUICK ESTIMATION)

GROWTH RATE OF AREA AND PRODUCTION OF PRINCIPAL CROPS IN INDIA

AREA
RICE
WHEAT TOTAL CEREALS TOTAL PULSES TOTAL OILSEEDS COTTON SUGARCANE

PRODUCTION

ISSUES

FIRST GREEN REVOLUTION IN THE MID 1960S THE FOOD GRAIN PRODUCTION HAS INCREASED FROM 82 MILLIONS TO 129 MILLONS FOOD SECURITY AND SELF SUFFICIENCY IN THE PRODUCTION OF STABLE FOOD RICE AND WHEAT TRADE LIBERALISATION AND DEPRECIATIOIN OF EXCHANGE RATE WHICH FAVOURED AGRICULTURE SECTOR

CHALLENGES TO BE MET

DECLINING PRODUCTIVITY POOR IRRIGATION FACITIES WATER MANAGEMENT LACK OF PUBILC AND PRIVATE INVESTMENT DISTROTING MARKETS DUE TO GOVERNMENT INTERVENTION UNORGANISED AGRICULTURAL CREDIT POOR INFRASTRUCTURE, ETC

PRODUCTIVITY

AVAILABILITY OF LAND IS INELASTIC FOOD SECURITY IS BASED ON AGRICULTURAL PRODUCTIVITY EXAMINING THE TOTAL FACTOR PRODUCTIVITY SEEDS WHICH WERE INTRRODUCED IN MID 1960S ARE TO BE REPLACED TO IMPROVE TOTAL FACTOR PRODUCTIVITY(TFP), RESEARCH EXTENSION, TECHNOLOGY, INFRASTRUCTURE ARE TO BE CONSIDERED A STUDY REVEALS THE IMPROVMENTS IN STANDARDS OF RURAL LITERACY, ADOPTION OF TECHNOLOGY, MODERN INPUTS ETC WILL ACHIEVE FARM MODERNISATION

WATER MANAGEMENT AND IRRIGATION

EFFICIENCY IN USING THE WATER IS MORE IMPORTANT FOR CULTIVABLE AREA UNDER IRRIGATION 140 MILLION HECTARES OF LAND HAVE USED FOR IRRIGATION ONLY 70% HAS BEEN EXPLOITED RECTIFYING THE PROBLEMS OF WATER LOGGING AND SOIL SALINITY MAY DEVELOPE THE PRODUCTIVITY SUITABLE IRRIGATION CHANNELS AND DRAINAGE SYSTEM ARE TO BE UNDERTAKEN IRRIGATION SYSTEM IN INDIA ARE NOT UPTO THE REQUIRED LEVEL MILLTES, RAGI, PULSES ETC CAN CULTIVATE IN DRY LAND PUBILC AND PRIVATE INVESTMENT IS REQUIRED TO ENSURE OPTIMAL USE OF WATER

PUBLIC AND PRIVATE INVESTMENT IN AGRICULTURE

IN MID 1990S THE SHARE OF PRIVATE INVESTMENT HAS BEEN DECLINING AND PUBLIC INVESTMENT IS STAGNANT THE SHARE OF INVESTMENT IN AGRICULTURE BY PUBLIC SECTOR WAS 82% IN 1990 AND DECLINED TO 76% IN NEXT 6 YEARS RESEARCH AND DEVELOPMENT MADE BY OUR GOVERNMENT THROUGH INSTITUTIONS OF INDIAN COUNCIL AGRICULTURAL RESEARCH (ICAR), STATE AGRICULTURAL UNIVERSITIES(SAUS) ETC RESEARCH AND EXTENSIOIN ACTIVIES HAS GREAT IMPORTANCE FOR AGRICULTURAL SYSTEM

AGRICULTURAL CREDIT AND INSURANCE

RISK TO BE AVOIDED BY PROVIDING CREDIT ON TIME CROP AVAILABILITY OF CREDIT IN TIME AND ORGANISED CREDIT STRUCTURE ARE TO BE PROVIDED THE BANKS MUST REACH THE MOST NEEDY AND LANDLESS POOR FARMERS BY GIVING LOANS BUT THE COMMERCIAL INSTITUTIONS LIKE BANKS ARE READY TO GIVE LOANS INTEREST RATE ON THE CREDITS TO THE FARMERS TO BE REDUCED BY 4% THE AGRICULTURAL INSURANCE SCHEMES NEED TO BE EFFECTIVELY IMPLEMENTED ACROSS THE COUNTRY

HORTICULTURE AND AGRO-PROCESSING

TRANSITION FROM TRADITIONAL FOOD GRAIN PRODUCION TO HIGH VALUE HORTICULTURE LEADS TO INCREASED IN COST PRODUCTION AND RISK INVOLVED IT DEALS WITH ALLOCATION OF AREA UNDER SEASONAL FRUITS, VEGETABLES ANDDAIRY ETC AVAILABILITY OF CREDITS AND INSURANCE CAN PROVIDED GOVT POLICIES SHOULD MOTIVATE THE SMALL FARMERS TO PRODUCE MORE FOR EXPORTS AND TO MAKE SURPLUS PRODUCTIION OF FARM UNITS THERE SHOULD NOT BE ANY GAP BETWEEN PRODUCTION AND PROCESSING AND ENABLE THE FARMERS TO EARN HIGH INCOME BY INCREASING THE PRODUCTION OF PULSES, OILSEEDS, FRUITS, VEGETABLES ETC

MINIMUM SUPPORT PRICES AND ISSUE PRICE

THE PRICES WILL BE ANNOUNCED BY THE AGRICULTURAL PRICE COMMISSION AND IT IS MEANT FOR MAJOR CROPS LONG TERM GUARANTEE TO THR PRODUCER IN THE EVENT IN THE MARKET IN OVER PRODUCTION PRICES ARE NOT ALLOWED TO FALL BELOW THE MINIMUM PRICE ANNOUNCED BY APC ISSUE PRICE IS THE PRICE AT WHICH THE GOVT SUPPLIES FOOD GRAINS THROUGH RATION SHOPS

GOVERNMENT INTERVENTION POLICIES-NEED TO BE REFORMED

GOVT INTERVENTION INTO THE MARKET TO STABILIES FOOD PRICES, PUBILC DISTRUBUTION, DEALING WITH FOOD SECURITY ETC MAJOR ROLE OF GOVT TO PROVIDE INFRASTRUCTURE, CREDIT AND INVESTMENT, LOANS ETC

AGRICULTURAL TRADE LIBERALISTION

ALL QUANTITATIVE RESTRICTION TO IMPORTS OF AGRICULTURE PRODUCTS WAS REDUCED IN INDIA UNDER THE RULE BY WTO IN 2001 THE PERCENTAGE SHAREOF AGRICULTURAL EXPORTS TO NATIONAL EXPORTS HAS DECLINED FROM 18.5% IN 1990-91 TO 11.% IN 2004-05 AGRICULRAL TRADE LIBERALISTION CAN BRING IN GRAINS FOR INDIAN FARMERS THROUGH AN AGGRESSIVE TRADE POLICY

CONCLUSION

AGRICULTURE HELPS IN UPLIFTMENT FARMERS AND ALSO IT BENETIS MORE IN ERADICATING POVERTY IMPLEMENTATION OF THE GOVT POLICIES IN TIME IS AN MUCH REFROM TO TAKEN UP MOTIVATION OF NEW MODELS IN PRODUCIION AND ALONG WITH CREATING AWARENESS AMONG SMALL FARMERS FOR THE DEVELOPMENT OF THE AGRICULTURE SECTORS