Five year plans for food industries

Introduction :
The continuing food inflation in the country has brought in sharp
focus supply side constraints, especially in case of perishables.
There is thus an increasing realization about the need to increase
agricultural production in the country and a strategy to usher in
second green revolution is under preparation. At the same time, it
needs to be understood that it will not be enough only to produce
more, but it is equally important to save each grain produced by
reducing wastages.
This would improve farmers income and economic viability of
agricultural operations. Such a strategy would also be essential to
meet the twin national objectives of inclusive growth and food
security.
The growth of food processing sector would need to be a
significant component of this strategy, considering its possible
role in achieving increased agricultural production by ensuring
better remuneration for Farmers. The food processing sector
makes it possible by not only ensuring better market access to
farmers but also reducing high level of wastages. A developed
food processing industry will reduce wastages, ensure value
addition, generate additional employment opportunities as well
as export earnings and thus lead to better socio-economic
condition of millions of farm families.
1st five year plan :
The first five year plan accorded pride of place to programmes for agriculture and community
development. This was a natural priority in a plan seeking to raise the standard of living of the mass of the
people, specially in rural areas, but it was also justified in the special circumstances of shortage and
inflation which existed when the plan was formulated. More than any other factor, the increase in
agricultural production which has taken place since 1952-53 has helped to end inflation, stabilise the
economy and prepare the way for a higher rate of development during the second five year plan. The
index of agricultural production, with 1949-50 as base, stood at 96 in 1950-51. It stood at 114 in 1953-54
and 1954-55, and is expected to be 115 in 1955-56. During the first plan, the national product increased

by 18 per cent, and income in the agricultural sector increased in the same proportion. Increase in
agricultural production also stimulated growth in other sectors of the economy.
Review

of

the

First

Plan

The first five year plan envisaged the following increases in agricultural production:
Commodity

Unit

Foodgrains
Major oilseeds

Million tons

Sugarcane (gur)
Cotton
Jute

Production in base Targets of additional Percentage increase

year*
production
54.0
7.6
14
5.1
0.4
8
5.6

0.7

13

Million bales 2.9

3.3

1.3
2.1

45
64

.Base year for foodgrains is 1949-50; for others 1950-51.

These targets of additional production, especially of foodgrains, were worked out in terms of the
contribution anticipated from different programmes such as irrigation, use of larger quantities of fertilisers,
supply of improved seeds and programmes of land reclamation and development. In other words, it was
reckoned that if the developmental measures which the plan provided for were taken the production
potential would increase to the extent indicated. In given years the actual levels of production for different
commodities would necessarily vary with weather conditions and other factors such as the relative prices
for different crops.

SECOND FIVE YEAR PLAN

Objectives and techniques significant as the achievements of the first plan have been, it is apparent that
they have to be regarded as no more than a beginning. The task is not merely one of reaching any fixed
or static point, such as doubling of living standards, but of generating a dynamism in the economy which
will lift it to continually higher levels of material well-being and of intellectual and cultural achievements.
The current levels of living in India are very low. Production is insufficient even for satisfying the minimum
essential needs of the population, and a large leeway has to be made before the services arid amenities
required for healthy living can be brought within the reach of any significant proportion of the population.
There are large areas or regions of the country which are underdeveloped even in relation to the rest of
the country and there are classes of the population which are almost untouched by modem progressive
ideas and techniques. It is necessary to proceed faster with development, and this, it must be
emphasised, is possible only to the extent that a larger measure of effort, both financial and
organisational is forthcoming. For several plan periods to come, it is on the mobilisation of the effort rather
than on the gains and returns arising therefrom that attention has to be concentrated. These gains and
returns are important, but more important is perhaps the satisfaction that a community gets from
attempting a worthwhile task which gives it a chance to bend its energies to productive and socially useful
purposes. The 'costs' of development, viewed in this light, are a reward in themselves. There is no doubt
that given a right approach to problems of development, including social policy and institutional change, a
community can draw upon the latent energies within itself to an extent which ensures development at
rates much larger than nice calculations of costs and returns or inputs and outputs may sometimes
suggest.
The Socialist Pattern of Society

. A rising standard of life, or material welfare as it is sometimes called, is of course not an end in itself.
Essentially, it is a means to a better intellectual and cultural life. A society which has to devote the bulk of
its working force or its working hours to the production of the bare where-withals of life is to that extent
limited in its pursuit of higher ends. Economic development is intended to expand the community's
productive power and to provide the environment in which there is scope for the expression and
application of diverse faculties and urges. It follows that the pattern of development and the lines along
which economic activity is to be directed must from the start be related to the basic objectives which
society has in view. The task before an underdeveloped country is not merely to get better results within
the existing framework of economic and social institutions but to mould and refashion these so that they
contribute effectively to the realisation of wider and deeper social values.
These values or basic objectives have recently leen summed up in the phrase 'socialist pattern of
society'. Essentially, this means that the basic criterion for determining the lines of advance must not be
private^profit but social gain, and that the pattern of development and the structure of socio-economic
relations should be so planned that they result not only in appreciable increases in national income and
employment but also in greater equality in incomes and wealth. Major decisions regarding production,
distribution, consumption and investmentand in fact all significant socio-economic relationshipsmust
be made by agencies informed by social purpose. The benefits of economic development must accrue
more and more to the relatively less privileged classes of society, and there should be a progressive
reduction of the concentration of incomes, wealth and economic power. The problem is to create a milieu
in which the small man who has so far had little opportunity of perceiving and participating in the immense
possibilities of growth through organised effort is enabled to put in his best in the interests of a higher
standard of life for himself and increased prosperity for the country. In the process, the rises in economic
and social status. Vertical mobility of labour is thus no less important than horizontal mobility, for nothing
is more destructive of hope and more inhibitive of effort than a feeling that the accident of birth or of a
poor start in life is likely to come in the way of a capable person rising in life in terms of economic and
social status. For creating the appropriate conditions, the State has to take on heavy responsibilities as
the principal agency speaking for and acting on behalf of the community as a whole. The public sector
has to expand rapidly. It has not only to initiate developments which the private sector is either unwilling
or unable to undertake; it has to play the dominant role in shaping the entire pattern of investments in the
economy, whether it makes the investments directly or whether these are made by the private sector. The
private sector has to play its part within the framework of the comprehensive plan accepted by the
community. The resources available for investment are thrown up in the last analysis by social processes.
Private enterprise, free pricing, private management are all devices to further what are truly social ends;
they can only be justified in terms of social results.

1.

ensuring integrity in administration;

2.

building up administrative and technical cadres and providing incentives and opportunities for
creative service;

3.

continuously assessing requirements of personnel in relation to the tasks to be undertaken;

organising largescale training programmes in all fields; and mobilising the available training
resources, including public and private institutions, industrial and other establishments,
apprenticeship and in-service training;

4.

devising speedy, efficient and economic methods of work, providing for continuous supervision,
and arranging for objective evaluation of methods and results at regular intervals;

5.

carrying technical, financial and other aids to small producers as in agriculture, national extension
and community projects and village and small industries;

6.

building up organisations for the efficient management of public enterprises as in industrial and
commercial undertakings, transport services and river valley schemes;

7.

securing local community action and public participation so as to obtain the maximum results
from public expenditure, as in agriculture and in social services; and

8.

strenthening the co-operative sector of the economy through assistance in managerial and
technical personnel and establishment of co-operative, financial, marketing and other institutions;

3rd Five Year Plan

Increase in agricultural production, the growth of modern industry and of transport and power, and the
development of the public and the cooperative sectors in the economy will create conditions which will
make it possible to advance towards socialism and to improve living standards. These will gain greater
social significance in the measure in which socialism develops at the level of the community and enlists
widespread local effort. As the values of socialism and democracy become more pervasive, influencing
everyday attitudes and behaviour, wider opportunities will open up for all sections in the community, and
especially for the under-privileged.
A large segment of India's development plans reaches the mass of the people through community
development. In promoting the growth of socialism at the level of the community amongst the rural
people, therefore, the role assigned in the Five Year Plans to the community development movement
should be specially stressed. Community development must seek, above all, to bring about increase in
agricultural production, higher standards of productivity, and fuller utilisation of the available manpower
and other resources. With its stress on the development of local initiative and responsibility and on
cooperative self-help, the movement is designed to serve as a spearhead of a wide range of programmes
of development, which include agriculture, cooperation, irrigation, village and small industries, rural
electrification and the reform of the agrarian system. One of its major aims is to create conditions for the
growth of a progressive cooperative rural economy with a diversified occupational structure in which the
weaker sections of the community are brought speedily to the level of the rest. The development of a
cooperative agro-industrial economy in rural areas is essential for ensuring that the benefits of
industrialisation spread out evenly among different sections of the population and to different areas and
for securing a large measure of integration between rural and industrial development in each region.
A recent development of the community development movement in the rural areas has been, what is
called, Panchayati Raj, or democratic decentralisation. At the village, block and district levels,
responsibility for development is entrusted to Village Panchayats, Pan-chayat Samitis and Zila Parishads,
and they are given considerable powers. This is a revolutionary change in the structure of administration
within the district and in the pattern of rural development, and is already producing significant results and
changing the rural climate.

4th five year plan :

Food Policy and Administration
The Food grains Policy Committee (1966) postulated three objectives of food policy: to achieve selfreliance in production, to ensure equitable distribution, and t and bring about price stability in the context
of both production and distribution. The Committee went on to suggest that the latter two objecives could

be achieved by planned management of food supplies involving such measures as procurement, control
of inter-State movement of foodgrains, a system of public distribution and the building up of buffer stocks.
Some of the measures recommended and indeed actually in operation such as control of inter-State
movement of focd-grainswere related to a situation of grave shortage coupled with the necessity of
maximum procurement. If the situation changes, so must the strategy. Thus, changes would obviously be
called for in the management of food supplies if the envisaged rate of growth in the production of foodgrains materialises in the Fourth Plan period. Food policy has to be so formulated as to meet different
situations, whether of deficits or of surpluses. It must have a certain amount of flexibility. It must, at the
same time, fit into the broad framework of economic policy. The main objectives of food policy in the
Fourth Plan may, therefore, be restated as:

i.

to ensure that consumer prices are stabilised and, in particular, that the interests of the low
income consumers are safeguarded;

ii.

to ensure that the producers get reasonable prices and continue to have adequate incentives for
increasing production; and

iii.

to build up an adequate buffer stock of foodgrains with a view to ensuring both the objectives
mentioned above.

10.2 Even when the food supply improves, prices may tend to be high in certain areas. Similarly, in years
of shortfall in production, prices might lend to rise causing distress to vulnerable sections of the
population. Protection of the interests of the consumers, particualrly the low income groups, would have
to be an objective of food policy. This involves distribution of foodgrains through cooperative and fair price
shops and the regulation of private trade. As an incentive for higher production, the rainier should get a
reasonable price, even when surpluses emerge. This can be ensured by State purchases, through the
Food Corporation of India, cooperatives and other agencies.
Instruments of Food Policy
10.3. The achievement of the objectives set out above calls for skilful management of food supplies and a
strategy which may have to be changed from year to year depending on the available food resources,
price trends, inter-State disparity in prices and availabiliy, and the continuing need of maintaining a buffer
stock at the desired level. Within the policy framework, there should be room for manoeuvre,
improvisation and flexibility, provided progress is mainrained towards attainment of the objectives set out.
A number of measures, direct and indirect, will be necessary. These include:

a.

the continuance of the public distribution system;

b.

the acquisition by the public sector of a sizeable percentage of marketable surplus of foodgrains
with a view to meeting the commitments under the public distribution system and maintaining the
buffer stock at the desired level;

c.

the imposition of such restrictions on the movement of foodgrains as may be necessary to help
the attainment of procurement targets or to prevent, in a condition of shortage, an excessive rise
in prices throughout the country;

d.

the regulation of private trade to curb speculation and hoarding;

e.

the regulation of bank advances against foodgrains; and

f.

the continuance of the ban on forward trading.

All these measures are at present being adopted as instruments of policy. A judicious combination of
these will be necessary during the Fourth Plan, though the precise role that each might play may change
from year to year.
10.4. Efforts have to be made to ensure that the fair price shop system is gradually replaced by an
arrangement under which the co-operative consumer stores or shops of multi-purposes societies become
the principal apparatus for public distribution of foodgrains. The cooperative consumer stores can play a
crucial role, especially in the rural areas, if their number is increased. At present, the fair price shop
system, working mostly through private units, depends on State initiative and action; and there are large
fluctuations in the operation acd extension of the system from year to year. Such a system is also apt to
be dismantled as soon as adverse conditions disappear. This is wasteful. Attempts will be made in the
Fourth Plan lo promote viable cooperative shops which will ds-pend not merely on the distribution of
foodgrains under the public distribution system but have activity-covering the sale of other goods of mass
consumption.
10.5. In the past. imports have met a good part of the requirements of the public distribution system. With
early cessation of concessional imports cf- foodgrains which is contemplated, commitments for the public
distribution system and buffer stock operations can be met only by internal procurement. The
procurement target for ihe country as a whole cannot be less than 8 to 10 million tonnes in any given
year.
10.6. Methods of procurement have varied. Certain States like Maharashtra have operated with success a
system of monopoly procurement with a graduated levy on producers. The Punjab scheme of pre-emptive
purchases, coupled with an efficient system of regulated markets, has also worked well. The States will
continue to have the choice of the mode of procurement best suited to the fulfilment of their obligations.
Procurement by States has, in conditions of scarcity, called for restrictions on the inter State movement of
foodgrains on private account. With the emergence of surpluses and the operation of an effective buffer
stock in foodgrains, these restrictions may, as and when warranted by the situation, be progressively
relaxed. Steps in this direction were taken during 1968 when a bigger northern food zone was constituted
and the movC'-ment of gram and barley was made free throughout the country. Movement restrictions on
maize, bajra and jowar were also lifted from Punjab, Haryana and Rajasthan. A further relaxation was
made in 1969 when the Northern Wheat Zone was enlarged so as to cover practically the whole of North
India. The approach towards zonal restrictions in the Fourth Plan will continue to be pragmatic.
Buffer Stocks
10.7. The importance of building up buffer stocks to stabilise the food economy has long been
recognised. A buffer stock is necessary not only to meet marked falls in production resulting from bad
years, but also to impart inter-seasonal stability to the price level. A buffer stock of adequate size has,
therefore, to be a central feature of food policy during the Fourth Plan. A beginning has been made with a
provision or a two million tonne buffer stock in 1968-69. On a consideration of various factors, the setting
up wheat buffer stock of five million tonnes of foodgrains might be deemed reasonably adequate. A buffer
stock of this magnitude, managed by the Food Corporation of India, would suffice to meet all except very
abnormal fluctuations such as those which- characterised 1965-66 and 1966-67. The requisite financial
provision for an additional buffer stock of 3 million tonnes of focdgrains has been made in the Plan.
Storage for buffer stocks is equally important. The programme of storage has been discussed in the
chapter on Agriculture.
Food Corporation
10.8. The principal agency for the implementation of the food policy is the Food Corporation of India.
Since its establishment in January 1965, there has been a substantial expansion of the activities of the

Corporation. The Corporation now functions in all States except Maharashtra. Jammu and Kashmir and
Nagaland. Its role and the extent of its operations, however, vary from State to State. The functions of
procuring, moving, storing and handling of foodgrains at the ports and in the interior have been handed
over to the Food Corporation by the Food Department. When the Corporation was established, it was
intended that it should attain a commanding position in the distribution cf foodgrains and stabilisation of
prices. This has not so far been achieved but substantial progress lias been made. During 1968-69 the
Corporation purchased or handled 8.7 million tonnes of food-grains both indigenous and imported valued
at about Rs. 713 crores. In coming years, the Food Corporation is expected to have adequate autonomy
and flexibility in its operation, as it will have to go increasingly into the open market. Its pricing strategy will
have to be determined not on the basis cf individual transactions but with reference to their total volume.
Integrated Approach
10.9. The Fourth Plan attempts to set out an integrated nutrition programme. Where so many are undernourished, more food is the first step towards better nutrition. In this sense, therefore, the nationwide
endeavour to1 develop agriculture, along with.animal husbandry and fisheries, must be regarded as the
base of all effort in nutrition. In the very process of production, including the planning for different crops, it
is both necessary and possible to provide for the main needs of good nutrition. While this will be sought to
be ensured both generally in the agriculture programmes and specifically in the areas covered by
schemes of applied nutrition, the important problem remains of widespread malnutrition among certain
vulnerable categories of the population. Recent surveys indicate that nearly two-thirds of expectant
mothers belonging to the poorer sections of the community suffer from serious malnutrition. Infant
mortality continues to be high. The health of young children, both pre-school and school-going, needs
special care. Protein malnutrition is acute in some parts of the country and deficiency diseases have a
high incidence. Specific programmes of nutrition, therefore, must also receive high priority. In formulating
them, the following requirements have to be kept in mind:

i.

since resources are limited, it is necessary to establish priorities with reference to needs, classes
and areas;

ii.

it is important to improve the efficiency, and extend the coverage, of the organisations whicli serve
the needs of the priority age-groups, classes and areas, and

iii.

programmes of distribution should be supported wherever this is necessary, by pro-grames of

production, processing and supply.

The coordinated nutrition programme of the Fourth Plan, consisting of both existing and new schemes, is
based on these considerations.The number of new schemes in the Plan has been kept to the minimum
necessary. Some of the schemes seek to make a beginning with the fulfilment of the special needs and
requirements of specified groups of people, for example, those likely to be affected by nutritional
anaemia, blindness or protein deficiency. Programmes concerned with preschool children and expectant
and nursing mothers will be concentrated in known areas of acute malnutrition, and become an important
item in the activities of balwadis. The efficiency and coverage of the existing agencies, voluntary and
departmental, vary in different pans of the country. Better implementation of nutrition programmes is
sought to be ersured in the Plan by effecting improvements in organisation and providing for adequate
supervision. There are also new schemes for the use of a wider organisational network involving the
association cf women, so that children, specially pre:school children, are properly looked after. Finally,
some of the new projects included in the Plan are in the nature of pilot schemes for promoting cheap,
nutritious or fortifying foods to replace in due course what is received as aid from abroad,

5th five year plan :

Agriculture Production: The methodology followed in arriving at the projections of foodgrains, important
commercial crops, irrigated areas and other physical programmes has been explained in the chapter on
the Rate and Pattern of Growth. These estimates relate to average weather conditions in a given year.
However, in order to allow for variations in the effect of weather, provisions have been made in individual
state plans on a slightly higher scale so that the total production is not materially lowered even if some
part of the country is affected. If these outlays are utilised with a fair degree of efficiency and if weather
conditions are favourable in all the states, the total production would naturally be much higher and could
be of the order shown in the table below.
(mt-million tonnas, mh-million hectares, mb-million bales )
item
(0)
foodgrains (mt)
oil seeds (mt)-five major
sugar cane (mt)
cotton ( mb -170 kg)
jute and mesta (mb -180 kg)
high-yielding varieties (mh)
fertilizers
consumption (mt)
minor irrigation (mh)

1973-74 level
(1)
104.7
8.9
140.8
6.3
7.7
25.8
2.8

maximum production estimates

(2)
132.9
12.6
173.5
9.0
7.7
40.0
5.0

23.1

31.6

5.8. The expenditure on Agriculture and allied programmes during 1974-77 is likely to be about Rs. 2 I 30
crores. The outlays proposed for the last two years of the Plan period are of the order of Rs. 251 3 crores.
The Sectorwise outlays are shown in Annexure 23 and the State-wise allocations are given in Annexure
24.
5.9. Performance of the important programmes, like DPAP, minor irrigation, production and distribution of
high-yielding varieties of seed and distribution of fertilisers have been specifically examined and
necessary provision has been made. The outlays for reclamation of alkline, saline and acidic soils and
plant protection programmes have been suitably enhanced. Emphasis has also been placed on
developing organic sources of manure and higher outlays provided for setting up biogas plants. Adequate
provision has also been made for accelerating the minikit seed programme and strengthening of the
extension services. Provision has also been made for augmenting storage capacity in the public sector.
Irrigation
5.10. The total irrigation potential likely to be created during the Fifth Plan period is placed at 13-1 million
hectares ; 5-8 million under 'major and medium' and 7'3 million under'minor'. Allowing for certain
adjustments the additional potential should be of an order higher than 11 million hectares.
Major and Medium Irrigation
5.11. During the first three years of the Fifth Plan the expenniture on major and medium irrigation projects
is likely to be Rs. 1474 crores. For the remaining two years of the Plan, an outlay of Rs. 1 621 crores is
indicated keeping in view the progress achieved on each project, new completion schedules,
development of additional command and escalation in costs. Where work could be accelerated, higher,
outlays have been provided for projects such as Nagariuna-sagar, Sarda Sahayak, Rajasthan Canal,
Malaprabha and Kadana, Commitments to international agencies like the World Bank in respect of certain

projects and obligation of States to provide matching funds in respect of inter-State projects have been
kept in mind.
5.12. An Outlay of Rs. 1013 crores has been provided for new starts during the Plan period. In selecting
new projects, priority was accorded to those located in drought prone areas. On the basis of the data
furnished by the States and the discussions held recently, an additional potential of 5-8 million hectares is
expected to be acnieved during the Fifth Plan period. Details indicating the outlays and benefits Statewise are given in Annexures 25 and 26.
5.13. Planning Commission has been laying great emphasis on modernisation of certain important
irrigation schemes urgently, particularly those completed earlier to the Plan periods. Provision has been
made for some schemes like Godavari Barrage, Tajewala and Okhia Barrages and Bhimgoda headworks.
Minor Irrigation
5.14. According to the outlays available to the states for the first three years, a maximum potential of
nearly 3'4 million hectares is likely to be created during the first three years of the Plan. The provision
made in the following two years of the Plan almost equals the provision in the first three years. As a
number of the projects are nearing completion, it is expected that an additional 3-9 million hectares will be
brought under irrigation during the next two years.
Soil and Water Conservation
5.1 5. The programme for treatment of area in river valley catchment of major reservoirs and other soil
and water conservation programme made a late start. A considerable step-up in outlays for
implementation of these programmes has been made for the remaining two years'of the Fifth Plan. In
some of the States, soil and water conservation programmes have also been taken up with institutional
credit support and the targets of physical performance are likely to be achieved.
Area Development
5.16. This important programme for optimising the use of irrigation water and utilisation of the potential
created from selected commands of major irrigation works also took time to make a start. Now the
Command Area Development Authorities have been set up and other infrastructure facilities developed.
Therefore, the provision in the Central sector would be almost 22 per cent higher for the remaining two
years as compared to the outlays for the first tnree years. The provisions in the respective states
adequately match the provision made in the Central sector.
Investment in Agricultural Financial Institutions
5.17. More and more institutional finance is being extended to the development programme for rural
areas which leads to higher physical achievements with less public sector outlays. Accordingly, for
providing support to Agricultural Refinance and Development Corporation, adequate budgetary provision
has * been made in the Central Sector, which is almost 55 per cent higher than the outlay in the draft Fifth
Plan. In the State, sector, provisions have also been made for investment in agricultural financial
institutions which are higher by about 22 per cent. The provision made for the remaining two years in
some of the States especially in the eastern region for strengthening of cooperative structure and
development of loaning programmes by the Land Development Banks is almost 62% higher than the
outlays available for the first three years. The total investment outlay is being raised to Rs. 129 crores. It
is to be noted that the major portion of it will go to minor irrigation sector. This should generate sizeable
investment and strengthen the operational capability of the Central/State Ground Water Boards.

6th Five Year Plans :

The agricultural growth pattern during the Sixth Plan period has to take into account the immediate as
well as the long-term needs of agricultural commodities both for domestic consumption and for export.
The highest priority will be accorded to bridging the gap prevailing between .actual and potential farm
yields even at current levels of technology through the removal of the constraints responsible for this gap.
The untapped yield reservoir is quite high in most of the farming systems in the country and thereby
serves as a. source of optimism for achieving accelerated growth. Both agriculture and fisheries will have
to receive concurrent attention through the development of appropriate packages of technology, services
and public policies, which can help to enhance production from the soil as well as the sea and thereby
improve the income of farmers and fishermen. For achieving greater efficiency of farm management,
attention to non-monetary inputs is as essential as to cash inputs.
9.2 The pathway of agricultural advance so far adopted in the developed nations as well as in parts of
India relies heavily on increasing consumption of non-renewable forms of energy. It is obvious that finite
sources cannot, be exploited in an exponential manner. Agriculture, being the most important solar energy
harvesting enterprise, is an invaluable source ot renewable wealth. However, even this resource will
become non-renewable if damage is done to basic life support systems like soil and water and the
environment. The highest priority should hence go to the protection and improvement of basic agricultural
assets. Genetic diversity in plants, animals and fish will have to be conserved and studied with regard to
the use of genes present in such collections.
9.3 The agricultural strategy during the eighties will place increasing emphasis on integrated approaches
to pest control, nutrient and energy supply, and also to production, conservation, consumption and trade.
The triple alliance of weeds, pests and pathogens will have to be fought through an appropriate blend of
genetic, agronomic, biological and chemical methods of pest control. In the area of nutrients supply,
organic and biological sources of fertilisers will have to be harnessed in addition to increasing the supply
of mineral fertilisers. Phosphorus management and recycling require special attention since phosphorus
is a non-renewable resource. The care and maintenance of soil health as well as plant and animal health
will have to be carried out with the help of the local community. Integrated energy supply systems will
have to be based on the use of solar and wind energy, biogas, village wood lots in addition to electricity
and petroleum products. These systems will also be so designed as to reduce energy losses.
9.4 Three major groups of factors influence stability of productionweather, pest epidemics and public
policies. Pest epidemics can be kept under control tlirough proper pest surveillance and plant protection
measures. Public policies in the area of agrarian reforms and pricing, marketing and distribution can also
be tailored to stimulate production. Weather aberrations are, however, beyond human control. Therefore,
it is essential that contingency plans are developed, particularly in areas which are prone to drought and
floods for meeting different weather probabilities. The overall strategy for minimising the adverse impact
of aberrant weather will be: (a) to introduce crop life-saving techniques, (b) to popularise alternative
cropping patterns based on weather conditions; and (c) to introduce compensatory production
programmes in irrigated areas and in off-seasons. Steps will have to be taken during the Sixth Plan period
to systematise efforts in the field of disaster management with regard to human, animal and plant
populations.
9.5 The Sixth Plan will thus present many challenges and opportunities. Since food occupies the first
place in the hierarchical needs of man, we can neglect agriculture only at the risk of economic instability.
INDIAN AGRICULTURE IN THE EIGHTIES
9.6 Starting from the beginning of this century, three major phases can be identified in our agricultural
evolution. The first phase from 1900 to 1947 was marked by a near stagnation in farming as is clear
1'roma growth rate of about 0.3 per cent per annum achieved in agricultural production during this period.
Phase-11 extending from 1950 to 1980 has been marked by considerable advances in the process of
modernisation of agriculture, thanks to the steps taken in the development and spread of (a) technologies
based on scientific research; (b) wide range of services; and (c) public policies in land reform, pricing,
procurement and distribution. As a result, agricultural production grew at an annual compound rate of 2.8

per cent during 1967-68 to 1978-79. The third phase which has begun in the eighties will be marked by
the need Tor greater attention to marketing and trade, and to institutional frameworks which can help to
minimise the handicaps of small and marginal farmers and maximise the benefits for intensive agriculture
offered by small holdings.
9.7 The agrarian structure of our rural economy is such that small and marginal farmers cultivate nearly
73 per cent of the operational holdings in the country although they handle only about 23 per cent of the
cultivated area. Their total earnings from farming alone hence tend to be small and, in unirri-gated areas,
also uncertain. The long-term answer to this problem does not lie in steps like writing off loans and
fixation of procurement prices at levels which will further reduce the already low levels of consumption of
farm products. It is, therefore, proposed during this Plan to introduce a 3-pronged strategy to improve the
economic well-being of small and marginal farmers and share croppers:
(1) Improving the productivity and income from smaH holdings through detailed advice on land and water
use based on the following 4 criteria:

a.

Ecology: Integrating ecological considerations in land use patterns which would help to avoid the
problems of waterlogging, salinisation, erosion, etc. in irrigated areas and to elevate and stabilise
production in un-irrigated areas through water harvesting and conservation. Also, contingency
plans to suit different weather probabilities will be prepared and introduced according to seasonal
conditions.

b.

Economics: Since most of our farmers have low input purchasing and risk taking capacity, it is
essential that the land use patterns suggested both in irrigated and unirrigated areas should be
based on considerations of costs, returns and risks. Also, marketing opportunities will have to be
carefully studied and appropriate advice given to farmers, so that their efforts are adequately
rewarded. The economic issues involved in the entire production-trade-consumption chain will
have to be gone into.

c.

Energy: The land pnd water use pattern should be based upon the optimum utilisation of the
available forms of renewable and non-renewable forms of energy.

d.

Employment: The aim of land use should be to optimise the opportunities for gainful employment
and to make it possible for introducing labour diversification and subsidiary occupations for
landless labour families. State Land Use Boards assisted by a Central Land Use Commission will
pay priority attention to the reorientation of current patterns of land use on the above lines.

(2) Farmers' own organisations for storage and marketing particularly of perishable commodities will be
promoted since this will help to protect small and marginal farmers from exploitation by middlemen. Aich
organisations would be provided by Government with appropriate support in the areas of train-flig and
trade.
(3) Diversification of opportunities for income through the introduction of subsidiary occupations under
IRDP as well as lean season employment through JSREP will be undertaken so as to enhance and
stabilise rural incomes.
9.8 In the eighties, public policy measures which can help to stimulate production by small and marginal
farmers as well as consumption by the rural and urban poor will have to be developed carefully. Ad-hoc
measures introduced without a proper action-reaction analysis as temporary palliatives, may in the long
run do more harm tlian good. Since agriculture is a State subject, State Governments have a particularly
important role as well as responsibility in this respect.
OBJECTIVES AND STRATEGY

9.9 The aims of the agricultural programmes during the Sixth Plan period would be:

a.

to consolidate the gains already achieved;

b.

to accelerate the pace of implementation of land reforms and institution building for beneficiaries;

c.

to extend the benefits of new technology to more farmers, cropping systems and regions and to
promote greater farm management efficiency through concurrent attention to cash and non-cash
inputs;

d.

to make agricultural growth not only an instrument of maintaining an eifective national food
security system but also a catalyst of income and employment generation in rural areas;

e.

to promote scientific land wateruse patterns based on considerations of ecology, economics,

energy, conservation and employment generation; and

f.

to safeguard the interests of both producers and consumers by attending to the needs of
production, conservation, marketing and distribution in an integrated manner.

9.10 In realising these aims we have to take cognisance of the basic socio-economic parameters
governing agricultural growth during the eighties which are the increasing fragmentation^ of land holdings,
imbalances in the diffusion of improved technologies in different areas and in the relative rate of growth 'of
different crops.
9.11 The position with regard to the average size of a farm holding in all the States of India shows a trend
tov/ards a gradual reduction in the size of an operational holding (Annexure 9.1). Land consolidation has
not taken place in many of the States in the country. Watershed management in un-irrigated areas,
command area development in irrigated areasmd catchment area management in hilly regions which are
the triple approaches to scientific water conservation and use have been rendered difficult due to
fragmentation of holdings and absence of cooperative management.
9.12 An urgent pre-requisite for accelerating agricultural advance is the need for institutional
arrangements tor assisting small and marginal farmers to maximise the opportunities offered by a small
farm for intensive agriculture and minimise the handicaps arising from the absence of land consolidation
and levelling and the inability to invest on inputs and face risks. The major steps proposed to be taken
during the plan period to help small and marginal farmers and share-croppers, both in irrigated and
rainfed areas to derive advantage from improved technology, are the following:

a.

Extend the benefits envisaged under the Integrated Rural Development Programme to farming
communities in all the blocks of the country (this has already been done with effect from 2
October, 1980);

b.

Help to organise farmers' agro-service centres which can provide relevant services in the area of
tillage and farm operations, water conservation and management, plant protection, processing
and marketing;

c.

Promote group management of soil. plant and animal health care without affecting the
individuality of farm holdings;

d.

Organise effective input supply services including credit;

e.

Provide the necessary assistance in the areas of post-harvest technology, particularly with regard
to marketing through the rural godowns project; and

f.

Develop further on-going crop/animal credit insurance schemes to insulate farmers from losses
due to reasons beyond their control.

7th Five year plans :

An increase in foodgrains production plays a particularly important role in the Seventh Plan. Any
shortfall in foodgrains production will tend to reduce rural incomes and generate inflationary
pressures that will hurt the poor and erode public resources. These risks are greater with an
employment-oriented development strategy. Hence an expanded food security system, based
on rapid increases in foodgrains production, especially in the undeveloped regions, public
procurement, buffer stocking, and public distribution is a key component of the Seventh Plan.
The Seventh Plan aims at extending the green revolution to new areas through its emphasis on
raising the productivity of rice in the eastern region and in rainfed and dryland agriculture. This
should lead to faster growth in agricultural output in areas which, in the national context, are
economically backward. The special role of human resource development in the Seventh Plan
strategy will also help correct regional imbalances in social development. These elements in the
Seventh Plan strategy aiongwith existing programmes and policies on resource transfers,
location of industries, area development and provision of minimum needs would reduce regional
imbalances in economic and social development.
The impact of the Seventh Plan on poverty and unemployment will bring about an important
qualitative change in the economy. At present the top 30 per cent of the population accounts for
over half of the consumer expenditure both in rural and urban areas and for the bulk of the
demand for manufactured consumer goods. By the end of the Seventh Plan, with the expected
decline in the proportion of the population below the poverty line and with the reduction in the
backlog of unemployment, there will be a significant increase in the demand for food articles
and for many manufactured consumer goods and services. This increase in the size of the
domestic market can provide a base for rapid industrial advance, which in turn will further
accelerate the growth in employment. Hence the Seventh Plan strategy which focuses attention
on employment generation and poverty reduction will also help strengthen growth impulses in
the economy.
8th Five Year Plan
Fish and Fish Products
6.13.9 India has a coastline of 7,500 kms and an Exclusive Economic Zone (EEZ) extending to 2.02
million square metres with vast potential for marine fishery. There are 1.8 lakh country crafts ^nonmechanised), 23,000 mechanised fishing vessels and 179 deep sea fishing vessels operating in the
Indian Exclusive Economic Zone. The annual production of maripe and inland fish and exports of marine
products are indicated in Statement 6.6. Shrimp alone remains so far the major component of the marine

exports from India. The export of marine products was approximately 20,000 tonnes during 1990-91 and
the reasons for the abysmal level of exports in this sector can be traced to the inadequate fish processing
capacity. There are at present 216 freezing plant with a freezing capacity of 2,200 tonnes per day and 25
canning units with a total capacity of 90 tonnes per day. On-board fish processing facilities are nonexistent in the country. While Individual Quick Freezing Plants (IQFP) have recently been established,
their capacity is inadequate as compared to that available in the advanced countries. As many as 5,000
cold storages, now available in the country, are also inadequate for handling the present volume of fish
catches. In all, the deep sea fishing industry today stands on a very weak footing. Maritime Zone of India
(Regulation of fishing by foreign vessels) Act, 1981 is implemented by the Coast Guards but they possess
inadequate communication facilities. The Fishery Survey of India, Bombay is the nodal agency for
conducting surveys and assessment of marine fisheries in the Indian waters.
6.13.10 To increase marine exports, there is need to use fish catches other than shrimps. New shrimp
ground and non-shrimp resources also need to be identified by Fishery Survey of India since exploitation
of the existing resources for shrimp catches have reached saturation level. Other aspects requiring
greater attention are quality improvement, technology upgradation, value added products, development of
infrastructure, improved methods of handling and preservation, etc.
Consumer Goods Industry
6.13.11 The consumer industry for eatable food processing items has a very wide spectrum and it is
concentrated largely in the organised sector including public sector units and large corporations in private
sector. There an' more than 18,000 factories producing food products worth Rs.9,000 crores. There are
large number of units in urorganised sector producing items like Pasta goods, traditional foods, Poha etc.
This sector is also playing an important role. The Confederation of Indian Food and Trade Industry (CIFTI)
is the apex body of food product manufacturing units while Agricultural and Processed Food Products
Export Development Authority (APEDA) is promoting exports of a wide range of Indian agricultural
products and processed foods Under the new industrial policy announced by the Government in July,
1991, licensing of food product industry has been dispensed with, except for non-potable alcohol, beer
etc. Broad- banding has also been extended to all processed food items excluding the items reserved for
the small-scale sector.
6.13.12 Two Central Public Sector Undertakings, namely, Modern Food Industries (India) Ltd. (MFIL) and
North Eastern Regional Agricultural Marketing Corporation (NERAMAC) are engaged in the production
and marketing of food products. MFIL is manufacturing bread, soft drinks, ready-to-serve food/drink,
edible oil, wheat products, nutritional diet, etc.
6.13.13 The NERAMAC is, on the other hand, engaged in the marketing and processing of fruit and
vegetables grown in the North Eastern States. The unit also markets citronella oil, ginger, mustard oil
cake, aromatic products of tlie regions, etc. It has a pineapple juice processing plant at Nalkata in Tripura
having a capacity of producing 48 tonnes of pineapple juice per annum. This unit is inclining losses since
its inception. Unless a major revamp is effected, it may not become viable.
Packaging Material for Food Industry
6.14.1 Several new trends, have now cmcigcd in new packaging materals like, tatrapacks, multi-layered
aseptic cartions like tatrapacks, multi-layered aseptic cartions, flexible plastic pouches, thermofarm cups
and tray packing,shrink film transport packing, etc. Container transport mode introduced by the Indian
Railways has improved transportation facilities, much needed for the food processing industries. The
increased shelf-life of the products of food processing industries have made these products popular and
also, to some extent, prevented post-harvest losses in fruit and vegetables.
6.14.2 The high cost and inadequate availability of quality packaging materials, coupled with their
irregular supply where these are available and high excise duties, have resulted in serious constraints in

the development of packaging industry. The main thrust in 'R and D' has to be on development of costefficient sophisticated packaging and consumer packs to meet international standards.
Food Processing Machinery
6.15.1 The requirements of food processing machinery are being met by chemical processing machinery
manufacturers, specialised machinery manufacturers and small-scale units. Most of them do not have the
necessary design and infrastructure for developing new products and cost efficient machinery and
equipment. There is need to upgrade technology available with the Indian manufacturers by enlisting
foreign collaborations where required, for design knowhow back-up. The Central Food Technology
Research Institute, Mysore, would be actively involved in the research in food processing machinery.
Encouragement to food processing industries would ipso facto increase demand of latest food processing
machinery. Incentives and other facilities to Indian machinery manufacturer would, therefore, be required
to enable them to enlist new foreign collaborations for food processing machinery as well as for high
speed packaging machinery.

9th five year plans

Food and Nutrition Security
4.3.1 At the time of independence the country faced two major nutritional problems; one was the threat of
famine and acute starvation due to lack of national and regional food security systems; the other was
chronic under-nutrition due to low dietary intake because of lack of purchasing power among the poorer
segments of the population.
4.3.2 One of the first efforts of the country was to build up a food security system to ensure that the threat
of famine no longer stalks the country. Investment in agriculture and the green revolution have ensured
that the food production has kept pace with the population growth and by and large India remained self
sufficient in food. Establishment of adequate buffer stocks has ensured availability of food stuffs within
affordable cost even during the times of drought. The fact that the country has not witnessed famine and
acute starvation on a massive scale in the last five decades is the most eloquent testimony for the
success of these efforts.
4.3.3 Even though self sufficiency in food production has been achieved, the population still lacks access
to balanced food. It is a matter of concern that the even though cereal production has kept pace with the
increasing requirements and average percapita intakes of cereal have remained satisfactory, there has
been a fall in the percapita consumption of pulses. It is important not only to improve pulse production but
also make them available at affordable cost. The production and consumption of vegetables and fruits
continue to remain low. Specific efforts have to be made to improve production and improved access to
vegetables especially green-leafy vegetables at affordable cost both in rural and in urban areas.
4.3.4 Poverty and lack of purchasing power have been identified as two major factors responsible for low
dietary intake. The concern over the economic factors resulting in chronic undernutrition led to the use of
calorie intake as the basis of estimating poverty and the development of food for work programmes as
one of the remedial measures to alleviate this problem. The food for work programme and employment
assurance scheme are aimed at improving household food availability in Below Poverty Line (BPL)
families especially in seasons during the employment and food availability in rural areas are low. To some
extent these measures have helped in improvement in the household food availability but the problem of
equitable distribution of available food and need based intrafamilial distribution of food persisted.
4.3.5 Public Distribution System (PDS) providing foodgrains at affordable prices is one of the key
elements of the Government's Food Security system. In spite of obvious limitations PDS did play a role
improving in regional food security specially in drought prone areas. In an attempt to improve availability

of food to population living in most vulnerable areas (remote, tribal and drought-prone regions) the
revamped public distribution system gave priority for establishment of PDS in such vulnerable areas. In
spite of mounting food subsidies evaluation studies indicate that supply of subsidised food given through
PDS has not resulted in improvement in household level food security. Self-sufficiency of foodgrains at
national level and availablility of foodgrains at affordable cost at local level have not got translated into
household level food security for the poor. In an attempt to limit the mounting cost of food subsidy and at
the same time ensure that people below poverty line do get subsidised foodgrains the targetted public
distribution system providing food grains at subsidised cost only the people below poverty line was
initiated. If susscesfully implemented the targetted PDS is expected to achieve better household food
security for families living below poverty line without substantially increasing food subsidy costs.
4.3.6 Inter-relationship between undernutrition and ill health has been well documented. Low dietary
intake and continued heavy physical activity lead to negative energy balance resulting in chronic
undernutrition. Chronic undernutrition may be associated with reduction in the work capacity and
increased susceptibility to infections. Infections in turn can further worsen the existing undernutrition.
Undernutrition and its adverse health consequences are more often seen in pregnant and lactating
women, infants and preschool children .
4.3.7 In an effort to reduce chronic undernutrition and its health hazards, food supplementation
programmes to identified vulnerable groups such as women and children were taken up initially by the
Deptt of Social Welfare and later Deptt. of Women and Child Development ; in the Integrated Child
Development Scheme an attempt was made to provide essential health and nutrition inputs to the women
and children and pre-school education to children both in urban and rural areas. Food supplementation to
the school children in the form of Mid day meal programmes were taken up in many states. Programmes
for prevention of iodine deficiency disorders, anaemia and blindness due to Vit A deficiency were initiated
by the Deptts of Health and Family Welfare.
4.3.8 A review of the of nutritional scenario in the eighties showed that there has been a marked reduction
in the severe grades of undernutrition and mortality due to severe undernutrition; however the existing
food supplementation programmes failed to achieve significant reduction in proportion and number of
persons with mild and moderate degrees of chronic under-nutrition, because the programmes tried to
provide food supplements to the identified segments of the community and not to identified person/ family
of persons suffering undernutrition. Specific micro-nutrient deficiencies as such anaemia (due to
deficiency of iron, folic acid), iodine and vitamin A deficiencies continued to remain major public health
problems because they cannot be tackled through food supplementation programmes and the propylaxis
programmes were not aimed at detection and correction of the deficiency in the individuals. With the
alteration dietary intakes and life styles newer problems such as obesity and noncommunicable diseases
has surfaced especially among the urban middle and upper income groups during the last decade.
Tackling all these problems through intersectoral cooperation between the concerned Departments
including Deptts. of Health, Family Welfare, Women and Child Development, Education, Agriculture, Food
Processing, Rural and Urban Development will receive due attention during the Ninth Plan period.

10th Five Year Plan :

Plant quarantine is a regulatory function under the Destructive
Insect Pests (DIP) Act, 1914 and the Plants, Fruits and Seeds
(Regulation of Imports into India) Order, 1989. Being a signatory
to WTO-SPS agreement, it is obligatory upon India

to provide quarantine services. Plant quarantine is bound to

assume greater significance in future as this plays an important
role in regulating import and export. Quarantine services will be
required to be provided in all the international airports and
seaports. Therefore, there is need to strengthen and modernise
the plant quarantine facilities in the country to keep pace with the
increased volume of trade of agricultural products. Recognising
the importance of the plant quarantine services, the Planning
Commission recommended the establishment of a National Plant
Quarantine Authority while reviewing the schemes of Department
of Agriculture and Cooperation.
Agriculture Extension
The extension services in the States would be reformed to make
these demand driven. The role of the non-government sector in
agriculture extension would be encouraged and an innovative
approach in the field of television/ radio broadcast including
specific channels in an interactive mode would be developed.
With far reaching changes in the communication technology and
breakthrough in space
technology, remote sensing, satellite broadcasting and the media
revolution, extension workers will be reoriented and retrained to
adapt themselves to those developments and make full use of
emerging opportunities. With the private sector, communication
networking will be encouraged to have backward linkages.
Besides, private sector would also be encouraged to provide
extension services, both information and services including input
supply and testing facilities for soil and inputs. The Department of
Agriculture and Cooperation, along with NABARD, has already
introduced a scheme for establishment of agri-clinics / agribusiness
centres / ventures by the agricultural graduates.

11th 5 year plan :

labelling, following actions will be undertaken during the Eleventh
Five Year Plan:
Creating Food Safety Authority for speedy enforcement of safety
standards.
Ensuring implementation of Capacity Building Project with the
objective to enhance capacities in laboratories, awareness of food
safety, and hygiene.
Strengthening State labs, capacity building, food portal,
comprehensive and informative/analytical database.
Rationalizing protocol for establishment of labs for food safety.
Implementing the Food Safety and Standards Act, 2006.
Affecting Convergence
Clean drinking water is vital as unsafe water increases the risk of
diseases and malnutrition. Waterborne infections hamper
absorption of food even when intake is sufficient. Rural water
supply is beset with the problem of sustainability, maintenance,
and water quality. Though more than 95% coverage was achieved
prior to Bharat Nirman, out of the 14.22 lakh habitations in the
country about 1.66 lakh have slipped back to a position where
people do not have adequate water to drink and have to walk
more than 2 km to fetch potable water. Similarly, about 1.86 lakh
habitations are dependent on contaminated water supply, which
leads to various health problems
12th Five year plan :
One important point to emerge is that although food inflation is
usually ascribed to production shortfalls, policy decisions on MSP
and on pricing and quantum of PDS and open market sales can be

even more important. This is of course true of rice and wheat

prices that are directly affected by such policies, but there are
indirect effects as well.
For example, milk, eggs, fish and meat had almost no effect on
food inflation from 200405 till 200809, but have contributed
most to food inflation subsequently
As discussed earlier, much of this was due to feed and fodder
shortages that the
2009 drought exacerbated. But the high build-up of rice and
wheat stocks may in this context have contributed additionally.
Substitution effects from lower availability of rice and wheat
appear to have pushed up real prices of coarse grain to levels
that compare with and most likely influenced inflation in livestock
products. To maintain rapid agricultural growth, it will be
necessary to continuously assess both MSP and trade policy in
light of domestic production trends, paying attention to such
wider linkages, so as to minimise undue production imbalance
and the inflationary pressures resulting from these.
Another important and related issue is the likely future demand
for food. The Twelfth Plan Working Group on Crop Husbandry,
Demand and Supply Projections, Agricultural Inputs and
Agricultural Statistics has made projections for foodgrains and
other food items by the terminal year of the Twelfth Plan, that is,
201617 which would suggest that present levels of cereals
production already exceed likely demand at the end of the Twelfth
Plan. These projections are based on actual past patterns of
observed demand and the fact that cereals consumption per
capita has declined since at least mid-1990s. However, it is also
the case that India has very high levels of malnutrition and,
although there are many reasons for this, deficiencies in calorie
intake remain one of the most important.

With cereals supplying over 50 per cent of total calorie intake

even now, falling cereals consumption is the main reason why per
capita calorie intake has not increased despite rising incomes. It is
not just that the share of cereals in total food expenditure is
falling; even poor people are reducing the share of income
spent on all foods in order to meet other non-food. needs. In such
a situation, where there is a disjunction between such a basic
element of human development as nutrition and other demands
in an increasingly consumerist society, there is need to ensure
that minimum nutrition requirements are actually met. This is the
goal of the proposed National Food Security Act (NFSA) under
which a majority of the population will be entitled to some very
cheap cereals. This is likely to increase cereals demand from
those projected.