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Trends in Indian Agriculture Agriculture is the main stay of the Indian economy as its performance is dependent upon the

growth of Agriculture sector. It contributes nearly 22% of Indias Gross Domestic Product (GDP) & 13% of total exports. It provides employment to 57% of the countrys work force and livelihood security to more than 650 million people. The average annual growth rate in agriculture, including allied sectors, declined from 4.7 per cent during the Eighth Plan (1992-97) to 2.1 per cent during the Ninth Plan (1997-2002). It further went down to 1.2% during the period 2002-05, i.e. the first three years of the 10th Five Year Plan 2002-07. Contrary to the targeted average annual growth rate of 4 per cent, the growth rate in 2002-03, the first year of the Tenth Plan (2002-07), was negative ( -7.0%). This of course reflected the impact of the severe drought of 200203. Favourable monsoon facilitated an impressive growth rate of 9.6 per cent in 2003-04. However, deficient rainfall from southwest monsoon is estimated to have caused a significant decline in kharif foodgrains production in the last year. The estimated Kharif foodgrains production is likely to undergo upward revision later and the Rabi Crop has been good. Agricultural growth rate in the year 2004-05 is estimated at 1.1 per cent especially in view of the high base of the previous year. The following table shows the recent trends in agricultural growth. ANNUAL AVERAGE GROWTH RATES (%) Five Year Plan Agricultural Growth Rate Overall Growth Rate (Including Allied Sectors) SEVENTH PLAN (1985-1990) 3.2 6.0 ANNUAL PLAN (1990-92) 1.3 3.5 EIGHTH PLAN (1992-97) 4.7 6.7 NINGH PLAN (1997-2002) 2.1 5.5 TENTH PLAN (2002-05) 1.2 6.5 Source: CSO and DES Plan outlay of Rs. 13200.00 crore was approved for the Department of Agriculture & Cooperation (DAC) for the Tenth Five Year Plan as against an outlay of Rs. 9153.80 crore in the Ninth Five Year Plan. This implied an increase of 44.20 percent in the plan allocation. During the first three years of the Tenth Plan, Department utilized 99.39% of its Revised outlay of Rs. 1667.00 crore in 2002-03, 97% of Rs. 2120.00 crore in 2003-04 and 90.18% of Rs. 2945.00 crore in 2004-05. In the current Annual Plan 2005-06, an outlay of Rs. 4179.32 crore has been approved. The thrust areas, inter-alia, include increase in the production and productivity of various crops including oilseeds and pulses; diversification to the high value crops; strengthening of agriculture marketing infrastructure; promotion of agriculture extension; promotion of water and soil conservation through watershed approach under natural resources management; and extended insurance scheme for risk management. In addition, an outlay of Rs. 30.00 crore has been provided for State Plan Scheme Watershed Development in Shifting Cultivations Area in North Eastern States.

FOODGRAINS PRODUCTION Total foodgrains production in the country crossed the 200 million mark for the first time in 1998-99 when it rose to 203.61 million tonnes. It rose further to 209.80 million tonnes in 1999-2000. Total foodgrains production declined steeply to 196.81 million tonnes in 2000-01, before it reached a high level of 212.85 million tonnes in 2001-02. However, the severe drought that affected several parts of the country in 2002 pulled down the total foodgrains production in the country to 174.77 million tonnes in 2002-03. Favourable rainfall from the south-west monsoon boosted total foodgrains production to a record level of 213.46 million tonnes in 2003-04. However, in 2004-05 deficient rainfall caused a significant decline in foodgrains production to 204.61 million tonnes (fourth advance estimate), which include kharif foodgrains production of 103.32 million tonnes and rabi foodgrains production of 101.29 million tonnes. However, in 2005-06 the production of kharif foodgrains is estimated at 105.25 million tonnes (First Advance Estimates). The fluctuations in foodgrains production have caused corresponding fluctuations in per capita availability as shown in the table below: PRODUCTION & AVAILABILITY OF FOODGRAINS YEAR Production (Million Tonnes) Gross 1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-05* * Provisional Note: - Net production is gross production minus quantity allowed for seed, feed and wastage at 12.5 per cent of gross production. Per capita availability is obtained after adjusting net production for change in stocks and net exports/imports. OILSEEDS AND OTHER COMMERCIAL CROPS Oilseeds production in the country has fluctuated around 20 million tonnes in recent years except in 2002-03 when it declined sharply to 14.84 million tonnes due to the drought in 2002. In 1998-99 oilseed production reached a record level of 24.75 million tonnes, which further rose to 25.29 million tonnes in 2003-04. In 2004-05 the production of Oilseeds reached an all time record level of 26.10 million tonnes which included a 199.44 192.26 203.61 209.80 196.81 212.85 174.77 213.46 204.61 Net 174.51 168.23 178.16 183.58 172.21 186.24 152.42 186.78 179.03 503.1 447.0 465.7 454.4 416.2 494.1 436.3 463.2 444.0 Per capita net availability (grams per day)

record production of soyabean at 7.51 million tonnes. The total Kharif oilseeds production in 2005-06 is estimated at 14.56 million tonnes which is marginally lower than the production estimated at 14.94 million tonnes in the previous year. As regards other commercial crops, the production of cotton was fluctuating around 10.0 million bales of 170 kgs. each.However ,there was significant increase in Cotton production to 13.87 million bales of 170 kgs. each in 2003-04 which increased further to a record level of 17.00 million bales of 170 kgs. each in 2004-05.In 2005-06 the First Advance Estimates put the production of cotton in 2005-06 at 15.90 million bales of 170 kgs. each. As regards Sugarcane, the production has been around 300 million tonnes. However, it declined significantly to 237.31 million tonnes in 2003-04 and further to 232.32 million tonnes in 2004-05 (Fourth Advance Estimates). In 2005-06 the production of Sugarcane is likely to be around 257.72 million tonnes. In the case of Jute, the production has been around 10.0 million tonnes. However, in 2004-05 the production of Jute declined to 9.64 million bales of 180 kgs. each. There is expected to be marginal decline in Jute production in 2005-06, and the production is likely to be 9.22 million bales of 180 kgs. each. The annexed Statement also gives first advance estimates of kharif oilseeds and other commercial crops for 2005-06 alongwith the details of production of commercial crops from 1993-94 to 2004-05.

The rainfall from the southwest monsoon in 2005 was 1 % below the long period average. Among the four homogeneous regions maximum deficiency in rainfall from South West monsoon was in North-east India (20%) followed by North west India ( 10%). The Central India and South peninsula received rainfall which exceeded the long period averages by 10% and 12% respectively. Out of the 525 meteorological districts, 105 districts (21%) received excess rainfall whereas 256 districts (51%) received normal rainfall. The rainfall was deficient in 131 districts ( 26%) while it was scanty in 11 districts ( 2% ). The cumulative rainfall from 1st June to 30th September 2005 was excess to normal in 32 meteorological sub-divisions and deficient/ scanty in 4 out of the 36 meteorological sub-divisions in the country. For the country as a whole, actual rainfall was 879.3 mm which was 1% less than the normal rainfall of 892.5 mm. Crop Scenario in 2005-06 The good rainfall received during the south-west monsoon has resulted in reasonably good scenario of production of foodgrains and commercial crops during kharif season of 2005-06. The first advance estimates have placed the overall Kharif foodgrains production for 2005-06 at 105.25 million tonnes compared to 103.32 million tonnes in the previous year. The rice production at 73.83 million tonnes is above the production level of 71.67 million tonnes last year. The production of Kharif coarse cereals at 26.44 million tonnes for 2005-06 is marginally below the production of 26.70 million tonnes in the previous year. As regards kharif pulses, the estimate for 2005-06 at 4.98 million tonnes is higher than that in 2004-05, which was 4.95 million tonnes. The annexed Statement gives first advance estimates of kharif foodgrains for 2005-06 alongwith the details of foodgrains production from 1993-94 to 2004-05

The total Kharif oilseeds production in 2005-06 is marginally lower at 14.56 million tonnes than that at 14.94 million tonnes in the previous year. The production of groundnut at 5.94 million tonnes as per first advance estimate for 2005-06 is higher than that in 2004-05, which was 5.33 million tonnes. The production of soyabean in 2005-06 is estimated at 6.58 million tonnes, which fall short of the soyabean production of 7.51 million tonnes in the previous year. As regards cotton, the production is estimated at 15.90 million bales of 170 Kg. each compared with 17.00 million bales of 170 Kg. each in the previous year. The production of jute is estimated at 9.22 million bales of 180 Kgs. each in 2005-06 compared with 9.64 million bales of 180 Kg. each in the previous year. The production of sugarcane is estimated at 257.72 million tonnes in 2005-06 compared with 232.32 million tonnes in 2004-05. Progress in Sowing of Rabi Crops As per the reports discussed in the meeting of the Crop Weather Watch Group held on 7-11-2005, The total coverage under rabi coarse cereals during rabi 2005-06 has been reported to be 41.31 lakh hectare against 41.70 lakh hectare during corresponding period last year. The coverage under jowar is 39.74 lakh hectare against 39.61 lakh hectare; bajra 0.03 lakh hectare against 0.03 lakh hectare; barley 0.19 lakh hectare against 0.19 lakh hectare; and maize 1.12 lakh hectare against 1.64 lakh hectare during corresponding period last year. Reports of coverage under wheat are awaited from the states. TRENDS IN SOWN AREA AND IRRIGATED AREA (2002-03) The net sown area in India is 142.08 million hectares, which accounts for 43.2 per cent of the total geographical area of 328.73 million hectares. Area sown more than once is 48.49 million hectares, which works out to 34.1 per cent of the net sown area. This means that the cropping intensity, (percentage of gross cropped area to net sown area), in the country is 134.1 per cent. The net irrigated area is 53.13 million hectares, which works out to only 37.4 per cent of the net sown a rea. The gross irrigated area is 72.58 million hectares, implying irrigation intensity at 136.6 per cent. 2 CROP PRODUCTION ORIENTED SCHEMES: Crops Division is implementing following shemes: (i) (ii) (iii) (iv) (v) (vi) Integrated Cereals Development Programme in Rice Based Cropping Systems Areas (ICDP-Rice); Integrated Cereals Development Programme in Wheat Based Cropping Systems Areas (ICDP-Wheat); Integrated Cereals Development Programme in Coarse Cereals Based Cropping Systems Areas (ICDP-Coarse Cereals); Sustainable Development of Sugarcane Based Cropping Systems (SUBACS); Special Jute Development Programme; Intensive Cotton Development Programme (Mini Mission-II of Technology Mission on Cotton);


Central Sector Scheme on On Farm Water Management for Increasing Crop Production in Eastern India.

From October, 2000, these schemes except Mini Mission II on Technology Mission on Cotton and On Farm Water Management for Increasing Production in Eastern India have been subsumed under Macro Management Programme with a view to provide flexibility to States according to regionally differentiated needs. The details regarding Mini Mission II of Technology Mission on Cotton and On Farm Water Management for Increasing Production in Eastern India are given below: MINI MISSION II OF TECHNOLOGY MISSION ON COTTON : In view of low productivity and poor quality of cotton, the Government of India launched Technology Mission on Cotton in February, 2000 integrating research, production, market infrastructure development and modernization of ginning and pressing factories through various Mini Missions. Ministry of Agriculture and Ministry of Textiles are involved in the implementation of Mini Missions under Technology Mission on Cotton for enhancing production, productivity and improving cotton quality. To supplement the efforts of the State Government in increasing production and productivity of cotton, the Department of Agriculture & Cooperation is implementing Mini Mission II of Technology Mission on Cotton (TMC). The programme is being implemented in 13 States viz. Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and Tripura. The scheme provides assistance for extension and development activities viz. technology demonstrations, training to farmers and extension workers, supply of critical inputs like seeds, sprayers, pheromone traps, bio agents, sprinklers / drip irrigation equipments, etc. CENTRAL SECTOR SCHEME ON FARM WATER MANAGEMENT FOR INCREASING CROP PRODUCTION IN EASTERN INDIA The Central Sector Scheme On Farm Water Management for Increasing Crop Production in Eastern India was started in 2002-03 and is being implemented by NABARD through Banks in cooperation with State Governments. Objective To increase the production and productivity of different crops in the Eastern India by exploiting the abundant ground and surface water resources. Area of Operation The Scheme is being implemented in 10 Eastern/ N.E. States i.e. Bihar, Jharkhand, Orissa, Chhatisgarh, Eastern UP (35 districts), West Bengal (9 districts), Assam, Arunanchal Pradesh, Manipur and Mizoram. Component of the Scheme ?? Construction of shallow Tube Wells (STW) with pumping sets; ??Low Lift Irrigation Points (LIP);

??Electric/diesel water pump sets; ??Dug wells in plateau Regions. Pattern of Assistance The funding pattern of the scheme is 20:30:50 i.e. 20% as beneficiarys contribution, 30% as grant in aid from the Government of India and the remaining amount of 50% as the loan to the beneficiaries by banks. It is a credit linked back-ended subsidy scheme. Monitoring of the scheme : At the central level the monitoring of the scheme is done through a Central Level Coordination Committee (CLCC) under the chairmanship of Secretary (A&C) and at State level, the monitoring is being done through a State Level Monitoring Committee (SLMC) under the Chairmanship of Agriculture Production Commissioner / Principal Secretary (Agriculture). In view of slow progress of the scheme, Government of India has decided to discontinue the scheme from 1.4.2006. 3 Technology Mission On Oilseeds and Pulses: Oilseeds During Xth Plan Government of India is implementing a Centrally Sponsored "Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize "(ISOPOM) in 14 major oilseeds growing States viz. Andhra Pradesh, Bihar, Chhatisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal with a view to increase the production and productivity of oilseeds in the country. Under the Scheme, assistance is provided for purchase of breeder seed, production of foundation seed, production and distribution of certified seed, distribution of seed minikits, distribution of plant protection chemicals, plant protection equipments, weedicides, supply of rhizobium culture/phosphate solubilising bacteria, distribution of gypsum/pyrite/liming/dolomite, distribution of sprinkler sets and water carrying pipes, publicity, etc. to encourage farmers to grow oilseeds. In order to disseminate information on improved production technologies amongst the farmers, block demonstrations and Integrated Pest Management (IPM) demonstrations are organized through State Department of Agriculture and Front Line Demonstrations through ICAR. An amount of Rs. 240.00 crores has been allocated for the development of Oilseeds, Pulses, Oil Palm and Maize Programmes under ISOPOM during 2005-06 and it is targetted to produce 278.00 lakh tonnes of oilseeds during the current year. Pulses India is the highest producer and consumer of pulses in the world. However, our indigenous production of pulses is not sufficient to meet the domestic requirement. The gap between demand and supply is being met through imports of pulses for other countries. Looking into the seriousness of the problem and increasing import, the Govt. of India decided to tackle this problem in a Mission Mode Approach. Accordingly, Pulses were brought under Technology Mission on Oilseeds during 1990. An Integrated approach has been adopted under the Mission right from research and development in production technology to crop production, post harvest and processing, price support and

marketing. The objectives set for the Technology Mission were (i) to increase the production of pulses, (ii) to reduce the import of pulses; and (iii) to achieve self sufficiency in pulses. Consequent to the setting up of Technology Mission on Pulses breakthrough in increasing pulses production has been achieved through an Integrated approach by introducing new crop technologies, supply of inputs and extension services support for marketing and post harvest technologies and excellent coordination/cooperation between various organizations/ departments and Ministries. During Xth plan, Government of India is implementing a Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) in 14 major pulses growing states viz. Andhra Pradesh, Bihar, Chhatisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. Under the scheme, assistance is provided for purchase of breeder seed, production of foundation seed, production and distribution of certified seed, distribution of seed minikits, distribution of plant protection equipments, weedicides, supply of rhizobium culture/phosphate solubilising bacteria, distribution of gypsum/ pyrite/ liming/ dolomite, distribution of sprinkler sets and water carrying pipes, publicity, etc. to encourage farmers to grow pulses on a large scale. In order to disseminate information on improved production technologies amongst the farmers, block demonstrations and Integrated Pest Management (IPM) demonstrations are organised through State Department of Agriculture and Frontline Demonstrations through KVKS. An amount of Rs. 240 crores under ISOPOM has been allocated for the programmes for development of oilseeds, pulses, oilpalm and maize during 2005-06 and it is targeted to produce 157 lakh tonnes of pulses during the current year. 4. (i) Horticulture National Horticulture Mission :

A Centrally Sponsored Scheme of National Horticulture Mission (NHM) has been launched in the country, during the current financial year with a total outlay of Rs.2300.00 crores during the X Plan including Rs.1091.00 crore for 2005-06 for the development of horticulture duly ensuring end to end approach having backward and forward linkages covering research, production, post harvest management, processing and marketing. The focus areas of the Mission will be as under : ?? Capacity building for production and supply of adequate quality planting material including setting up of scion banks of high yielding mother plants. ?? Increased coverage of crops under improved/high yielding cultivars. ?? Enhanced production and productivity of horticulture crops. ?? Strengthening of infrastructure facilities such as soil and leaf analysis labs, survey and surveillance of pest and diseases, green house, poly houses, micro irrigation, plant health clinics, vermicompost etc. ?? Build adequate infrastructure for on farm and post harvest handling. ?? Enhanced production of high value low volume horticultural products for exports.


?? Strengthening infrastructure facilities for marketing and export. ?? Enhanced production of high value processed products. ?? Build a strong base to enhance efficiency in adoption of technologies. ?? Work Plan of all states under the Mission have been approved. Technology Mission for Integrated Development of Horticulture in the North Eastern States, including Sikkim.

This scheme was launched during 2001-02 and has created an impact in terms of increased area and improved production. The scheme envisages to address all issues relating to the development of horticulture in the above States covering research, development and marketing. The States of J&K, Himachal Pradesh and Uttaranchal have been included under the scheme with effect from the year 2003-04. (iii) National Horticulture Board Programmes: The National Horticulture Board (NHB) has implemented major programmes like Capital Investment Subsidy Scheme for Construction/Expansion/Modernization of Cold Storages and Storages for Horticultural Produce, Development of Commercial Horticulture through Production and Post Harvest Management, Technology Development and its transfer for promotion of horticulture. Close to 30,000 letters of intent have been issued by National Horticulture Board (NHB), which is a quantum jump from earlier years. (iv) Coconut Development Board Programmes: The Coconut Development Board is implementing programmes for the integrated development of coconut industry and technology mission on coconut. The scheme proposes to establish convergence and synergies among ongoing programmes and bridge the gap between new programmes to ensure timely and concurrent attention to all the links in production, processing and diversification. (v) Centrally Sponsored Scheme on Micro Irrigation : A scheme on Micro Irrigation is proposed to be launched to increase the coverage of area under improved irrigation systems, particularly under horticultural crops with an outlay of Rs.850.00 crore for the X Plan. The scheme is in the final stage of approval. (vi) National Bamboo Mission : A National Bamboo Mission is proposed to be launched to harness the bamboo wealth in the country with an outlay of Rs.150.00 crore for the X Plan. The scheme is proposed to be implemented through State Bamboo Development Agencies, which need to be constituted. The scheme is in the final stage of approval. 5. AGRICULTURAL MARKETING 1. Construction of Rural Godowns: With a view to create scientific storage in rural areas to meet requirements of farmers for storing farm produce, this Department is implementing a Central Sector Scheme of Construction of Rural Godowns. Under this scheme, subsidy is provided on capital cost of the storage project to persons belonging to private and cooperative sectors. The scheme is being implemented since March, 2001 and so far 10595 storage projects

have been sanctioned by banks involving an investment of Rs. 1700crore to create 152.33 lakh tonnes of rural storage capacity in the country against the targeted capacity of 140.00 lakh tonne. The scheme has helped the farmers in storing their commodities near their fields, obtain pledge loan and marketing credit from the banks, thereby avoiding distress sale at the time of harvest. Capital subsidy to the entrepreneurs is credit linked and back ended and is adjusted in the entrepreneurs account after the repayment of loan which is usually of 7 to 9 years duration. This arrangement ensures utilization of godown project for agricultural purposes. Participation of multiple agencies in the implementation of the scheme has in addition to benefiting the farming community, generated huge investment in creating storage infrastructure in rural areas of the country. 2. Marketing Research & Information Network; With a view to disseminate price and market related information in respect of agricultural commodities to farmers, this Department has implemented a Scheme of Agricultural Marketing Information Network. Under the scheme, so far agricultural markets have been inter-connected of AGMARKNET portal wherein daily prices of more than 300 commodities and about 2000 varieties are being reported. During 10th Plan 2000 more agricultural markets are planned to be connected to the portal with a central outlay of Rs. 35 crores thereby providing on-line connectivity to 37 per cent of total number of wholesale markets in the country. So far an amount of Rs. 22.68 crore has been released for providing internet connectivity to 2207 markets; for developing 8 State level portals and for market led extension activities in 16 States. Funds have been released to NIC to cover 293 additional markets during 2005-06. The commodities covered include cereals, pulses, oilseeds, fruits and vegetables, spices, fibre crops, livestock, poultry, etc. IFFCO, a cooperative fertilizer company, has been involved in disseminating the price information to a large net work of farmers, cooperatives spread all over the country. National Multi Commodity Exchange of India Ltd, Ahmedabad have been interlinked with the portal to provide on-line information in respect of future prices of future prices of selected commodities. Linkages have also been established with websites of Food & Agriculture Organization (FAO) and Asian & Pacific Coconut Commodity (APCC) for accessing international commodity price trends, 3. Agricultural Marketing Reforms: To make the agricultural marketing system more vibrant and competitive, Government of India had taken the initiative in this regard by setting up of an Inter Ministerial Task Force on Agricultural Marketing Reforms which recommended amendment to the State APMC Act for promotion of direct marketing and contract farming, development of agricultural markets in private and cooperative sectors, stepping up of pledge financing, expansion of future trading to cover all agricultural markets, introduction of negotiable warehouse receipt system and use of information technology to provide market led extension services to the farmers. In order to guide the States in the implementation of suggested reforms, Central Government had now drafted a Model Act on Agricultural Marketing which inter-alia provided for the establishment of direct purchase centers and farmers markets for direct sale to consumers, complete transparency in the pricing system, and payment to farmers on the same day, public private partnership for professional management of existing markets and setting up of

Market Standards Bureau for promotion of standardization, grading and quality certification of produce in the National Conference of State Ministers on Agricultural Marketing and Land Reforms held on 7th January, 2004, all the State Governments had agreed to adopt Model Act on Agricultural Marketing in their respective States. The feed back received by the Department indicate that 19 State Governments /UTs have initiated action for amending their State Agricultural Produce Marketing (Regulations) Acts. 4. Modern Terminal Markets Modern Terminal Markets reduce Post-harvest losses and minimize the role of intermediaries with the latest technology. Ministry of Agriculture has assigned the task of preparation of Detailed Projects Reports for Development of Modern Terminal Markets for Fruits and Vegetables at Nasik, Nagpur, Chandigarh, Patna, Rai and Bhopal. Detailed Project Report (DPR) for Terminal Market at Nasik in Maharashtra has already been prepared and other reports would be completed shortly. 5. Central Sector Scheme for Agri-Business Development. A new Central Sector Scheme for Agri-business Development was approved by the Government on 19th July, 2005 for implementation during remaining period of Tenth Plan with an outlay of Rs.48 Crores. The outlay for 2005 2006 is Rs.10 Crores. The Scheme is to be implemented by Small Farmers Agri-business Consortium (SFAC) in close association with Commercial Banks. In order to facilitate agribusiness development in the country the scheme will: Assist agripreneurs to make investments in setting up agribusiness projects through equity participation and b) Provide financial support for preparation of bankable Detailed Project Reports (DPR) through a Project Development Facility (PDF). The main objectives of the Scheme are to facilitate setting up of agribusiness ventures in close association with banks; to catalyze private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income & employment; to strengthen backward linkages of agri-business projects with producers; to assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through Project Development Facility and to arrange training and visits, etc. of agripreneurs setting up identified agribusiness projects; SFAC will provide equity to qualifying projects on the recommendations of the bank financing the project. This equity capital will be repayable back to SFAC after the project has repaid the term loan of the financing bank. The quantum of SFAC venture capital assistance will depend on the project cost and will be the lowest of the following ?? 10% of the total project cost assessed by the bank ?? 26% of the project equity ?? 75.00 lakhs Rs. SFAC will provide financial support to farmers, Producer Groups, Agripreneurs, Units in Agri-Export Zones, and Agriculture graduates (called beneficiary) in the preparation of bankable Detailed Project Reports (DPR) through empanelled consultants/institutions. SFAC will provide for the cost of preparation of DPR upto a ceiling of Rs. 5.00 lakhs depending upon size, location, activity and coverage on a case to case basis. a)

Assistance under the scheme will be available to Individuals, Farmers, Producer Groups, Partnership / Propriety firms, Self help groups, Companies, agripreneurs, units in agri-export zones, and Agriculture graduates Individually or in groups. SFAC has already sanctioned Venture Capital Assistance to 20 agribusiness projects to the tune of Ts. 402.86 lakhs and also preparation 10 DPRs is under process by various consultants. 6. Agriculture Extension

A brief of the schemes implemented by the Extension Division is as follows: Mass Media Support to Agriculture This scheme is focusing on two initiatives. The first is use of Doordarshan infrastructure for providing agriculture related information and knowledge to the farming community. 180 Narrow casting Centres, 18 Regional Centres and 1 National Centre of Doordarshan Kendras telecast agricultural programmes for 30 minutes, five days a week. Programmes of Regional Kendras and some Narrowcasting centres are being repeated the next day on respective Regional Satellite Channel. Audio/ Video spots on emerging issues viz. Rabi/Kharif campaign, KCC, Credit Card facility etc. are also publicized through the programme. Live Crop Seminars on DD involving farmers and experts have been organized. The other component of the mass media initiative is use of 96 FM Transmitter of AIR to broadcast area specific agricultural programme with 30 minutes radio transmission in the evening six days a week. Arrangements are being made to obtain farmers feed back through Audience Research Units of DD & AIR. Concurrent feedback available through letter, phone-in programmes and DAC officers is regularly being given to DD/AIR. National/ State/ District Level Committees have been set up for monitoring of contents and quality of programmes. 2. Support to State Extension Programmes for Extension Reforms : This new Scheme has been approved on 29th March, 2005. and was launched on 7th May 2005 in a meeting with States. The scheme aims at making extension system farmer driven and farmer accountable by way of new institutional arrangements for technology dissemination in the form of an Agricultural Technology Management Agency (ATMA) at district level to operationalize the extension reforms. It is proposed to cover 252 districts across all the States/UTs in the country. 119 National Resource persons and 600 Master Trainers have been trained till now. Besides, 2 National Level Orientation Workshops and 27 State Level Orientation Workshops have been organised. 3. A Central Sector Scheme Establishment of Agriculture-Clinics and Agri Business Centres by Agriculture Graduates is being implemented since 2001-02 aimed to provide extension services to farmers on payment basis through setting up of economically viable self employment ventures. Selected trainees are provided agripreneurship training by MANAGE through 67 identified Nodal Training Institutions in various states, who also provide handholding support for one year. NABARD monitors the credit support to Agri-Clinics through Commercial Banks. 8749 candidates have been trained so far out of which 2369 (27% of trained graduates) have set up Agri-Clinic & Agri-business Centres. During the current year, till September, 1596 candidates have been trained, out of which 713 (44.67%) have established their ventures. Rs. 343.90

lakh loan have been sanctioned by 17 banks for 203 ventures from April to July during the current year. 4. Kisan Call Centers These Centers operate through toll free lines throughout the country and provide expert advise to the farmers. A country wide common four digit number 1551 has been allocated to these Centres. 13 such centers located at different places cover farmers queries from all over the country. The replies to the queries of the farming community are being given in 21 languages. Calls are attended from 6.00 am to 10.00 pm on all 7 days of the week. Since inception of the scheme scheme in January, 2004. Knowledge Management System (KMS) is being developed to create a Data Base for quick, correct and consistent replies to queries of farmers. State Level Monitoring Committees headed by the Principal Secretaries/ Secretaries of Agriculture of concerned States have been set up. Ten Offices of the DAC located in the different parts of the country are also coordinating and monitoring implementation of the scheme. 5. Setting up a Gender Resource Centre (GRC) in DAC, MOA: A Gender Resource Centre has been set up to work as a focal point for convergence and coordination of gender related issues within DAC, MOA and would ensure that policies in agriculture reflect the national commitment on empowerment of women through strategy of mainstreaming and strategy of agenda setting The Gender Budgeting Cell located in the NGRCA will look into the budgetary commitments of various schemes of DAC and proportionate flow of funds and benefits to women farmers. SUPPORT TO STATE EXTENSION PROGRAMMES FOR EXTENSION REFORMS ?? OBJECTIVE: To promote farmer driven and farmer accountable institutional arrangement and convergence of extension activities. ?? COVERAGE: 252 districts across all States/ UTs. ?? Implementation Status: a) Launched on 7th May 2005 in a meeting with States. b) 2 National Level Orientation Workshops organised in May05 c) Field visit of State Secretaries to NATP ATMAs organised in June/July. d) 2 Workshops to train 119 National Resource persons have been organized and their services made available to states. e) 27 State Level Orientation Workshops organised. f) 20 Workshops to train about 600 Master Trainers organized so far. g) Inter Departmental Working Group (IDWG) under chairpersonship of Agriculture Production Commissioner /Secretary Agriculture has been established in almost all States. i) All the States have identified State Level HRD Institutions (SAMETIs). j) 26 States have identified 238 districts for implementation of the scheme. k) 170 ATMAs have already been established. l) State Extension Work Plans (SEWPs) have been received from A.P., Jharkhand, H.P., Arunachal Pradesh and Maharashtra. m) Rs.29.71 crore have been released to the States/UTs. for preparatory and other activities.

MASS MEDIA SUPPORT TO AGRICULTURE EXTENSION ?? OBJECTIVE: To provide agriculture information and knowledge to farmers, using infrastructure of DD & AIR. ?? ACHIEVEMENTS: Full coverage of the scheme has been achieved as follows: a) 180 High/Low Power Transmitter of DD b) 18 Regional Kendras of DD c) DD- National Programme d) 96 FM Radio Stations of AIR ?? 30 minutes agriculture programme being broadcast 5/6 days a week. ?? Programmes to meet local needs in local language. ?? Programmes of Regional Kendras and some Narrowcasting centres are being repeated the next day on respective Regional Satellite Channel. ?? All programmes are available on DTH platform. ?? NEW INITIATIVES: a) Audio/ Video spots on emerging issues viz. Rabi/Kharif campaign, KCC, Credit Card facility etc. publicised through the programme. b) Live Crop Seminars on DD involving farmers and experts have been organized. ?? MONITORING AND SUPPORT ACTIVITIES: a) Arrangements are being made to obtain farmers feed back through Audience Research Units of DD & AIR. b) Training & Capacity Building of Programme Producers and Agriculture Officers is being organized by MANAGE. c) National/ State/ District Level Committees have been set up for monitoring of contents and quality of programmes. d) Concurrent feedback available through letter, phone-in programmes and DAC officers is regularly being given to DD/AIR. e) Pre- publicity of programmes through local media by State/Distt. Committees. ?? A software to provide schedule of programme to be broadcast in advance is being developed by NIC. ?? ?? ?? ?? ?? ?? ACTION TAKEN UNDER KHARIF MEDIA CAMPAIGN 2005 Detailed advisories for cultivation of Kharif crops were prepared. Advisories in Hindi and English were disseminated through DACs web-site. Advisories were also circulated to State Agriculture Department, Kisan Call Centres and PIB for wide publicity. Important tips to the farmers to maximize Kharif production were prepared & released thrice through print media advertisements in 69 Vernacular Newspapers of 28 States & 4 UTs. Four video and four audio spots/jingles were prepared on Paddy, Cotton, Pulses, and Oilseeds and broadcast through paid advertisements in DD and AIR in prime time through their different Regional Kendras. These video and audio spots were also broadcast on DD and AIR during free commercial time under Mass Media Scheme throughout the Kharif season.

AGRI-CLINICS AND AGRI-BUSINESS CENTRES SCHEME ?? OBJECTIVE: Agri-clinic and Agri-business Centres Scheme was launched on 9.4.2002 to provide extension services to farmers on payment basis through setting up of economically viable self employment ventures. ?? Selected trainees are provided agri-preneurship training for a period of two months in identified Nodal Training Institutes. ?? The training component is looked after by MANAGE through 67 identified Nodal Training Institutions in various states, who also provide handholding support for one year. ?? The cost per candidate is Rs. 25,000/-. ?? NABARD monitors the credit support to Agri-Clinics through Commercial Banks. ?? The total outlay for implementation of training component of scheme during Xth Plan is Rs.44.11 crore & 17645 candidates are targeted to be trained. ACHIEVEMENTS ?? 8749 candidates have been trained so far out of which 2369 (27% of trained graduates) have set up Agri-Clinic & Agri-business Centres. ?? During the current year, till September, 1596 candidates have been trained, out of which 713 (44.67%) have established their ventures. ?? Rs. 343.90 lakh loan have been sanctioned by 17 banks for 203 ventures from April to July during the current year. ?? Being monitored regularly. Last review meeting was held in Oct. 05. ?? Independent evaluation of the scheme is being commissioned. NATIONAL GENDER RESOURCE CENTRE IN AGRICULTURE(NGRCA) ?? The NGRCA will act as a focal point for convergence of Gender issues in Agriculture & to ensure that policies in agriculture reflect the national commitment on empowerment of women through strategy of mainstreaming and strategy of agenda setting. ?? The Gender Budgeting Cell located in the NGRCA will look into the budgetary commitments of various schemes of DAC and proportionate flow of funds and benefits to women farmers ?? The NGRCA aims to support training, research, extension and advocacy on gender issues in Agriculture & allied sectors and forge effective functional linkages with other related departments and agencies. ?? During 2005-06, the NGRCA is commissioning studies on the following areas: a) Document success stories of Women farmers. b) Collate participatory material developed & innovative strategies followed in women specific programmes implemented by DOE. c) Develop Gender Sensitization Module and organize model sensitization workshops. d) Assess gender contents and promote generation of gender disaggregated data in respect of schemes and programmes of DAC.

Study on land laws/state policies related to womens access to land in selected states. ?? Facilitate implementation of the National Plan of Action (NPOA) on National Policy for Empowerment of Women (NPEW) as piloted by Department of Women and Child Development. KISAN CALL CENTRES (KCC) Launched on 21 January04 to provide agricultural information to the farming community through toll free telephone lines. A country wide common four digit number 1551 has been allocated for KCC. The replies to the queries of the farming community are being given in 21 languages. Calls are attended from 6.00 am to 10.00 pm on all 7 days of the week. Since inception of the scheme, over 11 lakh calls have been received. 116 Call Centre Agents & 123 specialists respond to the farmers queries at Level I & II. The KCC agent records the information given to farmers. Unanswered queries are escalated to Level III and the answers are sent by post. Knowledge Management System (KMS) is a software being developed by TCIL to create a Data Base for quick, correct and consistent replies to queries of farmers. It will also be available on internet. Training of Level I & II experts is being organized. Publicity for the scheme is provided by audio/ video-spots during the agricultural programmes of DD and AIR under Mass Media Support Scheme. State Level Monitoring Committees headed by the Principal Secretaries/ Secretaries of Agriculture of concerned States have been set up. Ten Offices of the DAC located in the different parts of the country are also coordinating and monitoring implementation of the scheme.


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The National Common Minimum Programme of the Government envisages doubling of credit flow to agricultural sector in the next three years. Sustained efforts made by the Government and other concerned agencies for improving agricultural production and productivity are expected to lead to even greater demand for agricultural credit in the coming years. The focus of the agriculture credit policy is on progressive institutionalization for providing timely and adequate credit support to farmers with particular focus on small and marginal farmers and weaker sections of society to enable them to adopt modern technology and improved agricultural practices for increasing agricultural production and productivity. 2. FLOW OF CREDIT The flow of institutional credit for agriculture and allied activities has increased from Rs.36860 crore in the year 1998-99 to Rs.86,981 crore in 2003-04. The target of flow of credit to agriculture sector for the year 2004-05 was fixed at Rs.1,05,000 crore and the achievement as on 31.3.05 is Rs. 1,15,242.81 crore. There has been a growth of 32% in credit flow in 2004-05 over the actual disbursement of Rs. 86,981 crore during 2003-04.

A target of flow of credit to agriculture sector for the year 2005-06 has been fixed at Rs.1,42,000 crore and the disbursement as on 30.9. 05 is Rs. 81,679.58 crore. 3. POLICY INITIATIVES FOR INCREASING THE FLOW OF CREDIT A comprehensive credit policy was announced by the Government on 18th June, 2004 containing measures for doubling of agricultural credit flow in next three years and provision of debt relief to the farmers affected by natural calamities. Following are the highlights of this announcement : ?? Credit flow to agriculture sector to increase @ 30 % per year. ?? Debt restructuring in respect of farmers in distress and farmers in arrears providing for rescheduling of outstanding loans over a period of five years including moratorium of two years, thereby making all farmers eligible for fresh credit. ?? Special One Time Settlement Scheme for settling the old and chronic loan accounts of small and marginal farmers. ?? Banks allowed to finance for redeeming the loans taken by farmers from private moneylenders. ?? Commercial Banks to finance @ 100 farmers / branch ; 50 lakh new farmers to be financed by the banks in a year. ?? New investments in agriculture and allied activities @ 2 to 3 projects/ branch. ?? Refinements in Kisan Credit Cards (KCCs) and fixation of scale of finance . Achievements A. 2004-05 i. The target of agriculture credit flow for the year 2004-05 was fixed at Rs.1,05,000 crore and the achievements as on 31st March, 2005 is Rs.1,15,242.81 crore. There has been a growth of 32 % in credit flow in 2004-05 over the actual disbursement of Rs.86,981 crore during 2003-04. ii. Around 66.32 lakh new farmers have been financed by Commercial Banks and RRBs as against a target of 50 lakh. Besides, Cooperative Banks have financed around 12.52 lakh new farmers, taking the total number of new farmers financed during the year to 78.84 lakhs. iii. An amount of Rs.11,710.44 crore has been provided as debt relief by all agencies as on 31st March, 2005. Under Special One Time Settlement Scheme, old and chronic loans amounting of Rs.756.83 crore have been settled. iv. Commercial Banks have extended loans to 16,758 farmers indebted to informal sources like moneylenders to redeem their debt with them and provided about Rs.57 crore upto 31st March, 2005. B. 2005-06 i. A target of flow of credit to agriculture sector for the year 2005-06 has been fixed at Rs.1,42,000 crore and the disbursement as on 30.9. 05 is Rs. 81,679.58 crore forming 57.52% of the annual target of Rs.1,42,000 crore. ii. Around 21.09 lakh new farmers have been financed by Public Sector Commercial Banks. Besides they have been provided loans of Rs. 11,861 crore against these

accounts, which accounts for 25% of their disbursements. Of these, 13.48 lakh accounts have been financed to SF/MF and another 0.43 lakh to tenant farmers, sharecroppers and oral lessees. iii. Private Sector Commercial Banks have financed 2.61 Lakh new farmers whereas Cooperatives and RRBs have financed 12.83 lakh and 8.07 lakh new farmers respectively. The total number of new farmers financed by all agencies during 2005-06 was to extent of 44.60 lakh as on 30th September, 05. iv. An amount of Rs. 3,129.79 crore has been provided as debt relief to farmers in distress, farmers in arrears and under OTS during the first six months of 2005-06. v. Commercial Banks have provided Rs. 7.28 crore as advances to farmers to enable them to redeem their debts from money lenders. The corresponding figures for Cooperative Banks and RRBs are Rs. 1.17 crore and Rs. 3.91 crore respectively. (II) KISAN CREDIT CARD SCHEME Kisan Credit Card (KCC) is one of the key products developed to improve farmers accessibility to bank credit for production purposes, simplify the credit delivery mechanism and provide more flexibility in the use of credit. KCC Scheme aims at providing adequate and timely support from the banking system to farmers for their cultivation needs in a flexible, hassle free and cost effective manner. The progress in the issuance of KCC is quite impressive and banks have issued more than 516 lakh KCCs upto 30th June, 2005 . There is coverage of risk of KCC holders against accidental death or permanent disability upto a maximum of Rs.50,000 and Rs.25,000 respectively. (III). REVAMPING OF COOPRATIVE CREDIT STRUCTURE In August, 2004, Government of India constituted a Task Force under the Chairmanship of Prof. A Vaidyanathan for suggesting measures for revival of Cooperative Credit Institutions. The Task Force in its report for short term cooperative credit structure has recommended a financial package of Rs.14,839 crore for revival of the credit cooperative institutions. The package covers accumulated losses, unpaid invoked guarantees, receivables from State Governments, return of share capital to State Governments, Human Resources Development, conduct of special audits, computerization, implementation cost etc. Provision of financial assistance is linked to reforms in cooperative sector. The Government, in Principle, has accepted recommendations of the Task Force and is working out the modalities for its implementation. A near consensus on the major recommendations of the Task Force has been arrived at with the State Governments. National Agricultural Insurance Scheme (NAIS) National Agricultural Insurance Scheme (NAIS) (Rashtriya Krishi Bima Yojana) is being implemented from Rabi 1999-2000 season in the country. Agriculture Insurance Company of India Ltd. (AIC) is the implementing agency for the scheme. The scheme is available to all the farmers loanee and non-loanee both -

irrespective of their size of holding. It envisages coverage of all the food crops (cereals, millets and pulses), oilseeds and annual commercial/horticultrural crops , in respect of which past yield data is available for adequate number of years. Among the annual commercial/horticultural eleven crops viz. sugarcane, potato, cotton, ginger, onion, turmeric, chillies, pine-apple, annual banana, jute and tapioca have already been covered under the scheme. All other annual commercial/horticultural crops will be placed under insurance cover in due course of time subject to availability of past yield data. 2. The premium rates are 3.5% per cent (of sum insured) for bajra and oilseeds, 2.5% for other Kharif crops; 1.5 per cent for wheat, and 2 per cent for other Rabi crops. In the case of commercial/horticultural crops, actuarial rates are being charged. Small and marginal are entitled to subsidy of 50% of the premium charged from them, which is shared on 50 : 50 basis by the Central and State Governments. The premium subsidy is required to be phased out over a period of 5 years. During 2005-06, 10% subsidy in premium is available to small and marginal farmers. 3. The scheme is operating on the basis of Area Approach i.e. defined areas for each notified crops for widespread calamities and on an individual basis for localised calamities such as hailstorm, landslide, cyclone and flood. Individual based assessment in case of localised calamities is being implemented in limited areas, on experimental basis, initially and shall be extended in the light of operational experience gained. Under the new scheme, each participating State/UT is required to reach the level of Gram Panchayat as the unit of insurance in a maximum period of three years. 4. At present, the scheme is being implemented by the following 23 States and 2 Union Territories: 1. Andhra Pradesh 4.Goa 7. Karnataka 10.Madhya Pradesh 13.Uttar Pradesh 16. Chattisgarh 19. Orissa 22. Rajasthan 25. Andaman and Nicobar 5. During the last ten crop seasons i.e. from Rabi 1999-2000 to Kharif 2004, 589 lakh farmers have been covered over an area of about 958 lakh hectares insuring a sum amounting to about Rs. 53465 crore under the scheme. Claims to the tune of about Rs. 2. Assam 5. Gujarat 8. Kerala 11. Meghalaya 14. West Bengal 17. Jharkhand 20. Jammu & Kashmir 23. Haryana 3. Bihar 6.Himachal Pradesh 9. Maharashtra 12. Tamil Nadu 15. Sikkim 18. Tripura 21. Uttranchal 24. Pondicherry

5730 crore have become payable against the premium income of about Rs. 1702 crore benefiting about 191 lakh farmers . Review of NAIS 6. Over a period of implementation of National Agricultural Insurance Scheme (NAIS), certain limitations/shortcomings relating to unit area of insurance, calculation of guaranteed income, low indemnity level, delay in settlement of insurance claims etc. are observed. Keeping in view the limitations in the existing scheme National Common Minimum Programme (NCMP) provided for redesigning of the Crop Insurance Schemes. Accordingly, a Joint Group was constituted to study the improvements required in the existing Crop Insurance Schemes. 7. The Group made in-depth study of the related issues and submitted its report on 20.12.2004. The Group has made number of recommendations. The important recommendations are in respect of reducing the unit area of insurance to Gram Panchayat for major crops, improving the basis of calculation of threshold yield, recommending higher indemnity level of 80% and 90%, coverage of pre-sowing/ planting risks and postharvest losses, to provide personal accident insurance cover and Package Insurance Policy etc. The report has been circulated among the States/UTs for their comments/views. 8. Based on the recommendations of the Joint Group, Modified NAIS has been formulated and sent to the Ministry of Finance, Deparment of Expenditure and Planning Commission for in principle approval to the proposed Modified NAIS. The Modified NAIS was subsequently, discussed in the Planning Commission and in the meeting of AM with FM. Keeping in view the suggestions of Planning commission and Honble Finance Minister further improvements are being made in the proposed Modified NAIS.


Cooperative Education and Training

The Government of India is implementing a Central Sector Scheme for Cooperative Education and Training through the National Cooperative Union of India (NCUI) and the National Council for Cooperative Training (NCCT) NCCT is conducting training programmes for the personnel in the cooperative sector for which the Government of India provides 100% Grants-in-aid to NCCT. NCCT conducts training programmes through Vaikunth Mehta National Institute of Cooperative Management, Pune 5 Regional Institute of Cooperative Management and 14 Institute of Cooperative Management located in the various parts of the country. Cooperative Education programmes are being implemented by NCUI Govt. of India provides 100% grants-in-aid to NCUI for implementing the special scheme of intensification of Cooperative Education in the cooperatively under developed states. The special scheme is being implemented by NCUI through 50 Cooperative Education Field Projects in 26 States/UTs. Out of 50 projects, 7 projects have been set up in the North Eastern Region of the country and 4 projects exclusively for women.

In addition, Govt. of India is providing 20% grants-in-aid to NCUI for implementing approved activities like monitoring the Cooperative Education Programmes being implemented by the State Cooperative Unions, conducting of seminars conferences etc for cooperative development, running of National Centre for Cooperative Education, Cooperative Data Bank etc. The Central Sector Scheme for Cooperative Education & Training has been restructured. The Restructured Scheme as approved by the CCEA has four components (i) Assistance to National Cooperative Union of India (NCUI) for implementing Cooperative Education Programmes. (ii) Assistance to National Council for Cooperative Training (NCCT) for implementing Cooperative Training Programmes (iii) Assistance to Centre for International Cooperation and Training in Agricultural Banking (CICTAB) and (iv) Assistance to Junior Cooperative Training Centres (JCTCs.). Assistance to CICTAB hitherto being implemented by the Credit Division in the Department of Agriculture & Cooperation has been merged with the Central Sector Scheme for Cooperative Education & Training. Assistance to JCTCs is a new Component which has been incorporated in the Central Sector Scheme for Cooperative Education and Training for strengthening JCTCs in the States. NCDC Activities The Government of India implements its cooperatives development programmes inter-alia through the National Cooperative Development Corporation (NCDC) . The main programmes/schemes implemented through NCDC are Integrated Cooperative Development Projects in Selected Districts, Assistance to Cooperative Marketing, Processing and Storage programmes in Cooperatively under-developed States/Union Territories and Share Capital Participation in Growers Cooperative Spinning Mills. NCDC has chalked out a programme involving an outlay of Rs.2940.09 crores for the 10 plan comprising of Rs.1521.09 crores in respect of Central Scheme of Ministry of Agriculture to be implemented by NCDC and Rs.1419 crores for its own sponsored schemes. However, the outlay (revised) for Central Scheme comprise subsidy component of Rs.149.50 crores to be met by the Government of India in the Ministry of Agriculture and the balance loan component of Rs.937.75 crores will be made good by NCDC out of its own resources. During the year 2005-06 an outlay of Rs.850.00 crores has been earmarked for various cooperative activities by the Corporation.

Price Support Operations In order to give remunerative prices to the farmers of oilseeds and pulses, the Department is implementing Price Support Scheme (PSS) through NAFED by procuring the notified oilseeds and pulses at Minimum Support Price (MSP) in case the commodities fall below MSP level. During 2005-06 (upto 30.9.2005), NAFED has procured 107,797 MT of gram valuing Rs.17440.32 lakh, 2093298 MT Mustard Seed valuing Rs.391446.72 lakh, 30 MT Sunflower Seed valuing Rs.4.07 lakh and 31805 MT salflower seed valuing Rs.54,

23 lakh under the Price Support Scheme in the States of Madhya Pradesh, Maharasthra, Rajsthan, Gujarat, Andhra Pradesh, Chattishgarh, Uttar Pradesh, Bihar and Karnataka. NAFED procured a record quantity of 2093 MT Mustard valuing Rs.391400 lakhs during Rabi 2005 Crop Season under PSS and benefited the mustard growing farmers. MARKET INTERVENTION SCHEME (MIS) The horticultural commodities on the request of a State Government are purchased through NAFED and concerned State agencies under the Market Intervention Scheme (MIS) , the prices fall below the economic level, to benefit the farmers. During 2005-06 (upto 30.9.2005) Market Intervention Scheme has been implemented for procurement of 9582 MT chillies value Rs.2491.32 lakh in Andhra, 4755 MT Black Pepper value Rs.3328.50 lakh in Kerala.) AMENDMENT TO THE CONSTITUTION IN RESPECT OF COOPERATIVES Pursuant to the Common Minimum Programme of the UPA Government stating to being forward an amendment to the Constitution to ensure the democratic, autonomous and professional functioning of cooperatives, a Note for the Cabinet for amendment to the Constitution in respect of cooperatives was circulated to all concerned Ministries/Departments. Keeping in view the observations of PMO/National Advisory Council and comments of the concerned Ministeries/ Departments, a draft Note for the cabinet alonwith, the draft Bill for cooperatives has been finalized. The proposal has been sent to the Ministry of Law to vet from legal and constitutional angle. The matter is being pursued with that Ministry to expedite their advice.


Seeds (Agriculture)

Major initiatives 1. NATIONAL SEEDS POLICY

In response to the need for safeguarding the interests of the Indian farmers, conserving agri-biodiversity and creating an appropriate climate for the seed industry, the National Seeds Policy has been formulated to provide a framework for ensuring the growth of seed sector in a liberalized economic environment and to provide Indian farmers with a wide range of high quality seeds/planting material in adequate quantity.


Assistance for Boosting Seed Production in Private Sector:

National Seeds Policy, 2002 recognizes greater role for the private sector in the functioning of the seed industry in the country. Realizing the need for increased seed production with a view to enhance Seed Replacement Rates particularly in high volume low value crops, a component to provide assistance for boosting seed production in private sector has been included in the

restructured Central Sector Scheme Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds with an outlay of Rs.37.00 crores during the of Tenth Five Year Plan. Under this scheme, it has been decided to provide credit linked back-ended capital subsidy @25% of the project cost subject to a maximum limit of Rs.10.00 lakh per unit on seed infrastructure development to private companies, individual entrepreneurs, NGOs and Seed Cooperatives through commercial banks and National Cooperative Development Cooperation (NCDC). The National Seeds Corporation has been made nodal implementing agency. Administrative Approval of the Scheme has been issued on 30.5.2005. So far, an amount of Rs.7.00 crore has been released to National Seeds Corporation.


Seed Village Scheme:

To upgrade the quality of farmer-saved seed which is about 80-85% of the total seed used for crop production programme, it is proposed to provide financial assistance for distribution of foundation/certified seed at 50% cost of the seed of crops for production of certified/quality seeds only and t provide training on seed o production and technology to the farmers. This will be implemented in a compact area approach in the group of 50-6- farmers in a village or surrounding village. Each farmer will be entitled to seeds sufficient for sowing in maximum half an acre only. The seed produced in these seed village will have to be preserved/stored till the next sowing season. In order to encourage farmers to develop storage capacity of appropriate quality, assistance will be given to farmers for procuring of Pusa Bin/Mud Bin/Bin made from paper pulp, etc. for storing of seed produced by the farmers on their farms. The assistance to farmers will be @25% for general farmers and @33% for SC/ST farmers. 4. PROTECTION OF PLANT VARIETIES AND FARMERS RIGHTS ACT, 2001 The Protection of Plant Varieties & Farmers Rights Act provides for the protection of Intellectual Property rights of plant breeders in order to stimulate investment in R&D for the development of new plant varieties which would facilitate the growth of the seed industry and ensure the availability of quality seeds to farmers. The rules under this Act have been framed and sent to the Ministry of Law for vetting before the notification. The Protection of Farmers Rights Authority has also been established and the Chairman has already joined the Authority.


A high level Task Force was set up by Department of Agriculture & Cooperation under the Chairmanship of Dr. M.S. Swaminathan with the following terms of reference: ?? formulate a draft long-term policy on agro-biotechnology; To

?? To suggest modifications in the existing administrative and procedural arrangements in order to streamline/harmonize decision making under various Ministries/Organizations ?? To suggest the future role of the Ministry of Agriculture in view of the developments taking place in the field of agriculture biotechnology. ?? promote public awareness on matters relating to agricultural biotechnology. To The Task Force submitted its report in May, 2004. Based on the recommendations of the Task Force, ten priorities have been identified by the Department of Agriculture and Cooperation for implementation. Besides, a note for approval of the Cabinet has been prepared and circulated to all Ministries/Departments concerned for comments on setting up National Biotechnology Regulatory Authority. On the other issues, the Department of Agriculture and Cooperation in consultation with Department of Biotechnology and Department of Agriculture Research and Education, Ministry of Environment & Forests, State Agricultural Universities and State Governments will take action which are relating to funding of research, capacity building and creation of awareness, genetic literacy, biosafety, bio-ethics, bio-fortification, conservation tillage, conservation of biodiversity, organic farming system, tissue culture technology, etc.

Transgenic Bt. Cotton has been developed through genetic engineering techniques by transferring genes from the soil bacterium Bacillus Thuringiensis (Bt.) for production of Cry1AC protein in cotton plants for the control of Lepidopteran (bollworm complex) pests. This technology was initially developed by MONSANTO, USA. M/s Maharashtra Hybrid Seeds Company (MAHYCO) collaborated with MONSANTO Company for transferring this technology into Indian cotton lines. The Genetic Engineering Approval Committee, has so far granted approval for commercial release of 20 transgenic Bt hybrid cotton varieties developed by MAHYCO and other companies.


AMENDMENT OF SEEDS ACT, 1966: The Seeds Act, 1966 and Seed (Control) Order, 1983 regulates the quality of seed available in the market. The Seeds Act provides for a system of notification of kinds or varieties of seeds by the Government of India. Notification also enables enforcement of seed law by the State Governments. The Seeds (Control) Order, 1983 provides for licensing of seed dealers and has put in place a rigorous system of regulation and enforcement. A draft Seeds Bill, 2004 has been prepared on the basis of the recommendations of the Seed Policy Review Group and consultations with seed experts and various stakeholders. The provisions available in the Seeds Act, 1966, Seeds Rules, 1968 and Seeds (Control) Order, 1983 a are subsumed with the Seeds Bill, 2004 for regulating the quality of seeds. The Cabinet has approved the Seeds Bill, 2004 in the month of August, 2004 and the Bill was introduced in the Rajya Sabha in the month of December, 2004. The Bill has been referred to the Parliamentary Standing Committee on Agriculture. Two Oral Evidences were given on 17.2.2005 and 21.6.2005 before the

Parliamentary Standing Committee on Agriculture. At present, it is under reference in the Parliamentary Standing Committee.



The National Seeds Research & Training Centre (NSR&TC) at Varanasi has already been established. The NSR&TC would act as a premier training center for continuous dissemination of knowledge on all seed related subjects and also as a referral Central Seed Testing Laboratory. Dr, M. Bhaskaran, Associate Professor, Tamil Nadu Agricultural University has already taken over the charge of the post of Director, NSR&TC. 10. Integrated Nutrients Management (FERTILIZER) Assessed Requirement and Sales of major fertilizers during the year 2005-06 (seasonwise). Product Kharif, 2005 Sales Urea DAP MOP Requirement 114.39 33.44 13.90 107.66 25.26 12.04 %age 94 76 87 Rabi 2005-06 Requirement 119.87 44.59 15.00

Fertilizer Quality Control and Fertilizer Control Order, 1985 For ensuring the adequate availability of fertilizers in the country, the Government of India had declared fertilizer as an Essential Commodity as early as in March 1957, and enacted the fertilizer (Control) Order under Section 3 of the ECA to regulate trade, price, quality and distribution of fertilizer in the county. The Order provides for appointment of Enforcement Officers, setting up of Fertilizer Quality Control Laboratories & specifications of fertilizers besides other regulatory provision on fertilizer trade and distribution. There are 67 Fertilizer Quality Control Laboratories including 4 of the Central Government at Faridabad, Chennai, Mumabi and Kalyani for testing the samples drawn by the Fertilizer Inspectors from the field. The Analysts/ Fertilizer Inspectors of Quality Control Laboratories are trained in analysis of fertilizer by the Central Institute as mandatory requirement. The total annual analyzing capacity of these laboratories is 1.25 lakh samples per annum. The quality of fertilizers is maintained through various in built provisions viz. specification sof all fertilizers are approved in Schedule I Part A of FCO not only for nutrient content but also in respect of physical parameters as well as impurities. Sampling procedure has been prescribed in Schedule II for taking samples of the fertilizers, procedure has been prescribed in Schedule II part B for analysis of fertilizer. Any fertilizer which is not of the prescribed standard is not allowed for sale to the farmers as per Clause 19 of FCO.

National Project on Organic Farming. A new Scheme, National Project on Organic Farming has been taken up from October, 2004 with an outlay of Rs.57.05 crores for production, promotion, certification and market development of Organic Farming in the county during the remaining period of 10th Plan. The main components of the scheme are:(i). Putting in place a system of certification of organic produce. (ii). Capacity building through service providers. (iii). Financial support for commercial production units for production of organic inputs like;?? Fruits and vegetable waste compost; ?? Bio-fertilizer production; and ?? Hatcheries for vermiculture (iv). Promotion and extension of organic farming. During 2004-05, an expenditure of Rs.4.52 crores was incurred. During the current year (2005-06), a provision of Rs.27.00 crores has been kept for implementation of the scheme. 11. PLANT PROTECTION, QUARANTINE AND STORAGE Plant Protection continues to play a significant role in achieving targets of crops production. The major thrust areas of plant protection are promotion of Integrated Pest management, ensuring availability of safe and quality pesticides for sustaining crop production from the ravages of pests and diseases, streamlining the quarantine measures for accelerating the introduction of new high yielding crop varieties, besides eliminating the chances of entry of exotic pests and for human resource development including empowerment of women in plant protection skills. Keeping in view the ill effects of pesticide and also National policy on Agriculture, Integrated Pest Management (IPM) approach has been adopted as a cardinal principle and main plank of plant protection in the country in the overall crop production programme. Integrated Pest Management (IPM) is a broad ecological approach for managing pest problems encompassing available methods and techniques of pest control such as cultural, mechanical, biological and chemical in a compatible manner. The objectives of the IPM approach are to increase crop production with minimum input costs, minimize environmental pollution and maintain ecological equilibrium. The Locust Warning Organization (LWO) would continue to keep constant vigil on locust activity in the scheduled desert Area of 2 lakh sq. km. The Remote Sensing Laboratory, Jodhpur, the locust control potential of LWO (5 circles and 23 outposts) and locust research facilities at FSIL, Bikaner are also being strengthened during X Plan. Keeping in view the locust invasion of 1993, Locust Surveillance in the strategic areas has been intensified. Quality control of pesticides would be accorded highest priority to ensure that the agro-chemicals used have the requisite degree of efficacy. The existing facilities of Central Insecticide Laboratory, Regional Pesticides Testing Laboratories, at Chandigarh and Kanpur would be strengthened to supplement the resources of state/UT Governments

in the analysis of pesticides samples for monitoring their quality to ensure availability of quality pesticides to the farmers. During 2004-05, besides on going activities, the thrust area will be pertaining to Pest Risk Analysis (PRA) and post entry quarantine surveillance. This has become essential in the light of World Trade Organization (WTO) agreement, which will facilitate more and speedier movement of plants, planting materials globally. Such a situation will expose a linking danger for the introduction of exotic pests/diseases in the country. Considering this fact, Ministry of Agriculture issued a notification entitled The Plant Quarantine (Regulation of Import into India) order 2003 replacing the The Plants, Fruits & seeds (Regulation of Import into India) order 1989. The new regulation is effective from 01.01.2004. The existing Plant Quarantine Stations will be strengthened and there is possibility to establish some more stations with a view to enforce the quarantine regulations more effectively so as to keep the exotic pests and diseases at bay. The following two Plan Schemes are being implemented by Plant Protection Division of DAC through Directorate of Plant Protection, Quarantine & Storage 1. SCHEME: STRENGTHENING AND MODERNISATION OF PEST MANAGEMENT APPROACH IN INDIA On the recommendations of the Planning Commission, the Schemes at (A) to (D) above have been merged as a single scheme i.e. Strengthening and Modernization of Pest Management Approach in India for continuation during 10th Five Year Plan. COMPONENTS: A. Promotion of Integrated Pest Management (IPM) B. Locust Control and Research C. Training in Plant Protection D. Implementation of Insecticides Act. A PROMOTION OF INTEGRATED PEST MANAGEMENT (IPM ) Indiscriminate and injudicious use of chemical pesticides in agriculture has resulted in adoption of Integrated Pest Management (IPM) and cardinal principle and main plank of plant protection in the overall Crop Production Programme since 1985. IPM is an eco-friendly approach which encompasses cultural, mechanical, biological and need based chemical control measures. This scheme is being implemented through 26 Central Integrated Pest Management Centres (CIPMCs) located in 22 States and one Union Territory. This is an ongoing activity of the IX Five Year Plan with a total outlay of Rs.6675 lakh for the X Plan (2002-07). The indiscriminate and unilateral use of pesticides was the only plant protection tool during sixties and seventies for the sustaining of Agricultural Production potential of the high yielding varieties under the intensive cropping systems which has resulted into several risks and ill-effects such as human and animal health hazards, ecological imbalance, development of resistance in the pests to the pesticides, pests resurgence and environmental pollution besides, destruction of natural enemies (bio-control agents) of pests and increased level of pesticides residues in soil, water, food with the increased use of pesticides. Objective: The objective of this scheme is to keep the pests below harmful level and to minimize the use of hazardous chemical pesticides by adopting the Integrated Pest Management techniques.

Monitoring and forewarning of crop pests situation through regular rapid roving surveys by Central Integrated pest Management Centres (CIPMCs) with active collaboration of State Department of Agriculture for adopting timely control measures. (ii) Production and field release of laboratory reared potential Bio-control agents (parasites, predators and insect pathogens) for suppressing the pests. (iii) Conserving the naturally occurring bio-control agents in the fields by avoiding the unnecessary sprays by advising the farmers. (iv) Human Resource Development in IPM by organizing short duration Integrated Pest Management and Farmers Field Schools (FFS). (v) Strengthening the State bio-control agents production potential by providing technical assistance and extending funds as grants-in-aid to the states for completion of Bio-control Laboratories as planned during the X Plan. (vi) Implementation of FFSs through NGOs. (vii) Simplification of registration procedure in consultation with the pesticide Industry (viii) Withdrawal/ restriction on the manufacture and use of certain pesticides. Strengthening the existing CIPMCs by providing additional staff, equipment and construction of office-cum-laboratory buildings and setting up of 6 new CIPMCs in the 6 States for covering these States under IPM programme and Human Resource Development in IPM by organizing training for State Extension functionaries and farmers. Benefits: 1. The main mandate of these Centres is pest disease monitoring, production and releases of bio-control agents, conservation of bio-control agents and Human Resource Development in IPM by imparting training to Agricultural Extension Officers and farmers at the grassroots levels by organizing of Farmers' Field Schools (FFSs) in the farmers fields. So far, a total of 9111 Farmers' Field Schools have been organized and 37,284 Agricultural Extension Officers and 2,75,056 farmers have been trained. With a view to provide technical knowledge to the extension functionaries and farmers in the States, IPM package of practices have been evolved for 77 crops like rice, cotton, vegetables, pulses, plantation crops, spices, fruit crops and oilseeds. The technical knowledge of this package of practices are being implemented by the extension agencies in the States.

Activities: (i)


i) Area covered under Pest monitoring (lakh ha) ii) Bio-control agents a. Releases (Million) b. Area covered Conservation & augmentatio n) (lakh ha.) iii) Training & Demonstration a. FFS* conducted b. No. of AEOs* trained c. No. of farmers trained Parameter

Physical Performance (Units) 2002-03 2003-04 2004-05 Target Achieve Target Achievem Target Achieve ment ent ment 8.00 8.72 8.00 8.48 8.50 8.99

2000 6.00

2238 6.83

2025 6.20

2326 7.17

2350 7.00

2186 7.17

520 2600 15600

504 1807 15123

652 3260 19560

652 2151 19815

700 674 3500 2845 21000 20,257

Physical Performance (Units) 2005-06 Target Achievement (upto September, 2005 i) Area covered under Pest 8.50 3.34 monitoring (lakh ha) ii) Bio-control agents a. Releases (Million) 2350 7.00 748 b. Area covered 2.83 (Conservation & augmenttation) (lakh ha.) iii) Training & Demonstration (Depend on the deputation by a. FFS conducted* the States *) b. No. of AEOs* trained 680 326 c. No. of farmers* trained 3400 1235 20,400 8895 FFS: Farmers Field Schools, AEOs : Agricultural Extension Officers

B. LOCUST CONTROL AND RESEARCH: This sub scheme is being implemented through Locust Warning Organization (LWO) of this Directorate. Indian Locust Warning Organization (LWO) was established in 1939 under the Ministry of Agriculture to check the transboundary pest i.e. locust. It has 5 circles viz. Jodhpur, Bikaner, Barmer, Jaisalmer and Palanpur and 23rd outposts in the Scheduled Desert Area (SDA) to keep constant watch on the locust activity over an area of 2.0 lakh sq km of SDA spread in parts of Rajasthan, Gujarat and Haryana States. Strict vigil is kept on the locust development and movement through regular and intensive monitoring and surveys specially on Indo-Pak border areas. Radio communication network connecting all the LWO offices is maintained for effective and regular exchange of locust information. A satisfactory locust control potential is being maintained in the form of pesticides, equipment, vehicles, wireless sets and trained staff. Besides, there is one Field Station for Investigations on Locusts (FSIL) situated at Bikaner. A remote Sensing Laboratory has been setup at LWO Jodhpur to prepare vegetation maps based on satellite imageries for strengthening the locust monitoring, forewarning and control. Close cooperation and liaison is maintained with FAO and neighbouring countries in the matter related to locust monitoring/ control through exchange of locust situation and technological advances. Objective: To monitor, forewarn and control the Locust activity/situation in Scheduled Desert Area in India by way of intensive and extensive Locust survey and surveillance and to conduct research on Locust and Grasshoppers. Activities: Monitoring of locust activity through regular survey and surveillance round the year. i) Issuance of fortnightly locust situation bulletins to all concerned in India and abroad. ii) Organizing Indo-Pak border meetings for exchange locust situation information between two countries. iii) Conducting training to the farmers, State functionaries and locust staff on locust control. iv) Conducting research on locusts and grasshoppers. Benefits: The greatest achievement of Locust Warning Organization (LWO) is that no Locust Plagues have recurred/ reported since 1962 only due to careful and extensive surveys monitoring and successful control operations under taken by LWO against exotic swarms and localized small and large scale locust breeding at all occasions listed in the foregoing table. As a result the devastation of cultivated crops could be avoided by controlling the locust in Scheduled Desert Area (SDA) several times in the past, which resulted in the saving enormous crop/ vegetation losses.


Physical Performance 2002-03 i) Locust surveillance (Area in lakh ha) ii) Locust Situation Bulletin (Nos.) iii) Indo-Pak border meeting (N0s.)

Target 60.00 24 6

(Units) Achievements 232.00 (Due to repeated survey) 24 (Due to non grant of permission from DAC) 240.00 (Excess achievement due to repeated locust surveys in SDA) 24 Nil (Due to non permission from DAC) 215.00 24 04 (Pakistan delegates did not attend the meeting during June and July, 2004 105.00* upto September, 2005 12 04** grant of

2003-04 i) Locust surveillance (Area in lakh ha) ii)Locust Situation Bulletin (Nos.) iii) Indo-Pak border meeting (Nos.) 2004-05 i. Locust surveillance (Area in lakh ha) ii. Locust Situation Bulletin (Nos.) iii. Indo-Pak border meeting (N0s.)


24 6

60.00 24 6

2005-2006 i. Locust surveillance (Area in lakh ha) ii. Locust Situation Bulletin (Nos.) iii. Indo-Pak border meeting (N0s.)

60.00 24 6

Note: * Excess area surveyed due to repeated surveys in the Scheduled Desert Area of Rajasthan, Gujarat and Pak border areas surveyed to detect/collect the solitary Locust population. ** Indo-Pak border meeting between the officers of India and Pakistan conducted during the month and exchange the views on the locust activities.


TRAINING IN PLANT PROTECTION The Plant Protection Technology has assumed greater significance during the last three decades. The extension functionaries of State Departments of Agriculture need to be well equipped with such latest information Technology for improving knowledge and skill of the farming community. Until 1966, there was no such training facility in India to cater to the needs of the States. Therefore, to bridge this gap, Central Plant Protection Training Institute (renamed as National Plant Protection Training Institute), as a training wing of Directorate of Plant Protection, Quarantine and Storage, was established on 28th August 1966 at Hyderabad. In the beginning, the Institute was organizing a short-term course of three months duration in Plant Protection. During 1972, two more new courses on pesticides formulation analysis and pesticide residue analysis were added. The real fillip to the Institute came in 1974 with UNDP assistance to expand the training activities, to cater to the specific needs of the States. Since then, the Institute has been conducting

both long term and short duration courses every year. Keeping the quality of the training activities in view, the Institute has been recognized as a Regional Training Centre for Plant Protection by Food and Agricultural Organization of the United Nations and also as an Advanced Centre for training in Plant Protection Technology by the World Bank. Objectives: The main objective of the scheme is human resources development in Plant Protection technologies by organizing long and short duration courses on different aspects of Plant Protection. Activities: The major training activities of the Institute are(i) Human Resource Development in Plant Protection Technology with special emphasis on Crop Oriented integrated Pest Management approaches. (ii) Human Resource Development in the analysis of Pesticide Formulations and pesticides residues for monitoring the quality status of pesticides in States/UTs. (iii) Nodal agencies/forum for exchange of latest information on Plant Protection Technology. (iv) Collection and collation of information on plant protection technology for dissemination among the State Extension functionaries and farmers. Benefit: NPPTI Hyderabad being a nodal institute for Human Resource Development in Plant Protection technologies has conducted 880 training programme and trained 16269 officers/ officials of Department of Agriculture of different States/UTs so far including 216 foreign trainees on different aspect of Plant Protection Technologies to work as master trainers to disseminate pest control technology to farmers for getting better production.

Physical Performance (Units) No. of Training Courses Tenth Plan 2002-03 2004-05 2005-06 Target 27 2003-04 27 27 33 12 (upto September, 2005) Achievement 28



Pesticides are commonly used in crop protection measures for sustaining food production. These are also used for the control of vector born diseases. Besides, being toxic by their very nature, they are hazardous to human beings and ecosystem. The residues enter into food chain and cause harm to human and animal health. Keeping this

in view, their import, manufacture, sale and use etc. are being regulated under the Insecticides Act, 1968 and the Rules framed there under. For effective implementation of the various provisions of the Act and the rules, both at the Central and the State level and also to ensure availability of safer environment friendly and quality pesticides the Scheme Implementation of Insecticides Act, 1968 is being continued during the X plan with the following components:Strengthening of Central Insecticides Laboratory (CIL). Strengthening of Secretariat of Central Insecticide Board and Registration Committee. (III) Setting up and strengthening of Regional Pesticides Testing Laboratories (RPTLs). (IV) Strengthening of existing Coordination Cell. (V) Grants-in-aid to States/UTs to set up/strengthening of existing State Pesticides Testing Laboratories (SPTLs). (VI) Assistance to NGOs for purchase of equipment for setting up of Bio-control Laboratories. The Registration Secretariat is involved in registration of insecticides for the purposes of Export and indigenous manufacture and import besides advising the Central and State Governments on technical matters. The activities of the Secretariat includes processing applications for registration of insecticides, issuance of certificate of registration for insecticides approved by the Registration Committee, inclusion of new pesticides in the schedule of the Insecticides Act, review for continued use or otherwise of registered pesticides etc. The Central Government have also set up a Central Insecticides Laboratory (CIL) under Section 16 of the Act to perform the statutory role of referral analysis. Besides, two Regional Pesticides Testing Laboratories (RPTLs) have also been set up to supplement the resources of the States/UTs in the analysis of pesticides. The Central Insecticides Laboratory is engaged in pre and post registration verification of the properties performance and hazards of the pesticidal products and proposed use claimed by the manufacturers. Its activities include physico-chemical analysis of pesticides, to monitor quality, determination of the bio-efficacy of insecticides, determination of packaging and labeling parameters, evaluation of safety of packaging, development of safe packaging standards, toxicity testing of pesticides under Rule 5 of the Insecticides Rules, 1971, dissemination of knowledge on pesticides safety, training of Scientists, dealers, distributors and farmers etc., RPTLs supplement the resources of the State Governments and UT administration in analyzing the samples of pesticides for monitoring quality. Their activity include physico-chemical analysis of pesticides. Other activities are providing coordination and guidance to State Pesticides Testing Laboratories, release of grants-in-aid to States/UTs etc. Central Insecticides Laboratory consists of the following Divisions/ components:a) b) c) d) e) Chemistry Division Bio-assay Division Medical Toxicology division Packaging & Processing Division RPTLs (I) (II)

f) Co-ordination Cell for CIL and RPTLS g) Central insecticides Board and Registration Committee a) CHEMISTRY DIVISION Central Insecticides Laboratory has been established under the Insecticides Act, 1968 under the Scheme of Implementation of the Insecticides Act. The Chemistry Division of this Laboratory has been performing analysis of pesticides and their formulations sent by Courts/ Competent Authorities of various States and Uts. as it is a referral lab. To discharge the techno-legal requirements as specified under Rules 5 of Insecticides Rules, 1971, the major objectives of the Chemistry Division are a. to analyse such samples of insecticides sent to it under the Act by any office or authority authorized by the Central of State Governments and submission of certificate of analysis to the concerned authority. b. to carry out such investigations as may be necessary for the purpose of ensuring the conditions of Registration of insecticides. Benefits: Supply of quality pesticides to the farmers is of utmost importance for sustaining crop production from the ravages of insect pests, diseases, weeds etc. Considering the large number of registered pesticides (193) and their formulations. The importance of ensuring the availability of quality pesticides to the farming community assumes greater significance. The enforcement of quality control measures for pesticides is being undertaken within the overall purview of the Insecticides Act, 1968 and the Rules framed there under. Under the Insecticides Act, 1968 there is a mandatory requirement of seeking a manufacturing license by each manufacturer in addition to the seeking of product registration. However, the manufacturers can apply for registration of those products, which are included in the Schedule to the Insecticides Act, 1968. The enforcement of the various provisions of the Insecticides Act mainly rests with the State Government. The Act has provisions for notification of four important functionaries and most of the States and UTs have notified these functionaries viz., Licensing Officer; Appellate Authority; Insecticide Inspector and Insecticide Analyst. Periodical review is being made during the Zonal Conferences on Inputs and National Conferences on Agriculture for Kharif / Rabi Campaigns about the Quality Control arrangements, vis--vis, enforcement of the provisions of the Insecticides Act to discourage the offenders who indulge in the trade of spurious pesticides. b) BIOASSAY The main objectives of the Bioassay Division of the CIL are to test the pesticides (insecticides, herbicides, fungicides, insecticides of household and public health importance, bio-pesticides, etc.) for their bio-effectiveness, phytotoxicity, compatibility etc. to verify the claims of the applicants/registrants on these parameters before and after registration under the Insecticides Act, 1968. The main activities of the Division are as follows:1. Evaluation of pesticides for(i) Bio-effectiveness


3. 4. 5.

(ii) Phytotoxicity (iii) Compatibility (iv) Pesticides resistance (v) Pesticides Translocation Evaluation of Bio-pesticides (B.t.k. and B.t.i.), NPV, Trichoderma etc. on quality parameters like(i) Spore/CFU count (ii) Potency/Antagonistic compability (iii) Endotoxin by ELISA (iv) Exotoxin by Housefly Bioassay method (v) Solubility/Suspensibility (vi) PH Maintenance of cultures Preparation of guidelines/Quality Standards Development of Bioassay Technique for Quality Control

c) MEDICAL TOXICOLOGY Concern about the effects of pesticides on health has been voiced & documented in a number of reports. Activities to prevent such effects are carried out in most of the countries and at international level. As pesticides are inherently toxic in nature, they are more likely to affect the health of human beings than other agricultural chemicals. Any insecticide which is to be imported or manufactured for use in the country is to be compulsory registered by the Registration Committee constituted under Section 5 of the said Act. The registration of a pesticide is to be granted after the Committee is satisfied as regards the efficacy and safety of the product. The onus, lies with the manufacturer/importer for generation of data on safety parameters either in his own laboratories or in any other laboratory. The Medical Toxicology Division is created in order to verify the safety claims made by the manufacturers. Sometimes the adverse effects of registered pesticides also come to the limelight in due course of its use. To establish its adverse nature, this Division has to generate data and advise to the Government to take suitable course of action. Benefits: This Division is a highly specialised discipline of medicine, which inter alia look after the safety to human beings, animals and the environment. OBJECTIVES: ACTIVITIES: Pre and post registration verification of safety of pesticides. Toxico vigilance of pesticides Studies on * Acute, Sub-acute and chronic toxicity in mammals; * Metabolism of pesticides in animals; * Reproduction, synergism, neurotoxicity, carcinogenicity.

Assessment of * Impact of pesticides and their residues on humans; * Environmental pollution connected with pesticide manufacture, storage, use and toxicity to fish and birds. Identify antidotes for pesticidal poisoning and safety. Publish material on toxicological problems of pesticides. Training of scientists, dealers, distributors, medical doctors and farmers.

d) PACKAGING & PROCESSING Packaging is the integral process of production, distribution, storage, sale and use of a commodity. Before prescribing a container, one must have detailed idea of different activities involved in the life of a particular commodity. The development of a suitable container for packaging of pesticides needs greater care and sincerity as the item is hazardous in nature to animals, plants and environment. The main functions /activities of the Division are as mentioned below: 1. Pre/post registration verification of packaging, labeling and leaflet requirement as proposed by the manufacturer/applicant u/R 5 (c) of Insecticides Rules, 1971. 2. Analysis of samples of packaging material and physico-chemical analysis of the pesticide for evaluation of container content compatibility. 3. Development of new/alternative packaging after conducting laboratory tests and field trials as per the guidelines approved by the Registration Committee/BIS committee. 4. To render technical guidance to Bureau of Indian standards on packaging, labeling, storage, transportation, safety and quality. 5. To render technical advice on processing, packaging and labeling to the State Department of Agriculture, functionaries/implementation authorities on the matters related with the packaging, processing and labeling aspects Benefits: 1. The Division has verified shelf-life data submitted by the manufacturers for grant of enhancement of shelf-life of pesticides and their formulations. 2. The Division has developed about 31 no. of packaging systems/devices for packaging of pesticides and their formulations after conducting laboratory tests and field trials. 3. Developed and displayed in Agri-expo-95, on laboratory scale, eco-friendly and economic neem based formulation, technique, which was given good response by the farming community.



Regional Pesticides Testing Laboratories (RPTLs) is one of the component of the scheme Implementation of Insecticides Act. The scheme is being implemented by PP Division in the Ministry of Agriculture to ensure the availability of safer and environment friendly quality pesticides to the farmer. (ii) Details of benefits under in the schemes: The main objective of the scheme is to supplement the resources of State Govts./UTs for monitoring the quality of pesticides. Pesticides samples received from various States/UTs in the RPTLs are analysed for quality control. f) Coordination Cell: It is also working at Directorate of Plant Protection Quarantine & Storage, Headquarter, Faridabad with the objective to plan coordinate and liaises on the following: (a) Functioning and activities of RPTLs. (b) Functioning and activities of notified Central Insecticides Inspectors. (c) Grant in aid to State/UTs for strengthening/setting up of State Pesticides Testing Laboratories (SPTLs). g) CENTRAL INSECTICIDES BOARD AND REGISTRATION COMMITTEE In order to regulate import, manufacture, sale transport and use of pesticides, the Insecticides Act, 1968 and Rules framed there under are implemented by the Central and State Governments. The Central Sector Scheme has the following components:a) Central Insecticides Board (CIB) constituted under Section 4 of the Act. This Board renders advice to the Central Government/State Government on technical matters arising out of the administration of the Act and to carry out such other functions of the Central Insecticides Board. b) Registration Committee (RC) constituted under Section 5 of the Act Approves registration of pesticides under section 9 of the Act. Physical Performance (Units) No. of samples analysed Tenth Plan Target CIL Achievement 2002-03 2003-04 1243 RPTL achievement


2004-05 2005-06

1830 1830*


354 1914

1062 1800 ( upto September, 2005) * Depends on receipt of samples from Courts/Competent Authorities.



Plant Quarantine regulatory measures are operative through the Destructive Insects & Pests Act, 1914 (Act 2 of 1914). The purpose and intent of this Act is to prevent the introduction into India and the transport from one State to another of any insect, fungus or other pest, which is or may be destructive to crops. The Directorate of Plant Protection, Quarantine & Storage was established under Ministry of Agriculture (Department of Agriculture & Cooperation) in 1946 and entrusted with the implementation of Plant Quarantine Regulations issued under the Destructive Insects & Pests Act, 1914 to prevent introduction of exotic pests. Ministry of Agriculture has brought out New Seed Policy in 1988 with the main objective of providing access to the Indian farmers, the best planting material grown any where in the world in order to increase agriculture production and thereby raising the agriculture economy of the country. Further, New Seed Policy laid special emphasis for time bound strengthening of plant quarantine facilities at five major Stations viz., Amritsar, Chennai, Kolkata, Mumbai and New Delhi through which import of seed and other planting material is permitted. Subsequently, Ministry of Agriculture issued a notification entitled The Plants, Fruits & Seeds (Regulation of Import into India) Order, 1989 replacing earlier notification under the above said Act to regulate the import of plants, fruits, seeds through notified points of entry so as to prevent the entry of destructive pests of crops. Objectives: The Governments primary objectives for strengthening and modernization of Plant Quarantine facilities are: ?? prevent the introduction and spread of exotic pests that are destructive to crops To by regulating/restricting the import of plants/plant products. ?? support market access for Indias Agriculture products To ?? To facilitate safe global trade in agriculture by assisting the producers and exporters by providing a technically competent and reliable phytosanitary certificate system to meet the requirements of trading partners. Activities: The ongoing activities assigned under the scheme include: ?? To issue import permits with additional declarations and special conditions to facilitate safe imports of agricultural products. ?? undertake quarantine inspection and laboratory testing of plants and To plant material to ensure freedom from exotic pests. ?? To undertake fumigation/disinfestations/disinfections of commodities to control infestation/infection. ?? undertake post-entry quarantine inspection of imported plants and plant To material. ?? implement PQ regulations issued under the Destructive Insects & Pests To Act, 1914 and orders issued there under.



The economic returns social and implementation of this Scheme are as follows: (i)





Prevention of introduction of exotic pests that are detrimental to crops and there by protecting the interest of farmers. (ii) Increased access to markets of developed countries through quality exports and by meeting the stringent Phytosanitory requirements of trading partners. (iii) To promote safe global trade in agricultural commodities by compliance with international agreements. (iv) To facilitate quality agricultural exports through credible Phytosanitory certification. (v) To protect the environment by sustaining wild flora and fauna. Physical Target: Since the import and export of plants and plant materials largely depend upon the trade policies no physical targets can be fixed for the inspection and laboratory testing of plants and Plant materials at the various Plant Quarantine Stations. However, the activities of inspection and laboratory testing of plants and plant materials undertaken by various Plant Quarantine Stations under the Scheme for 2002-03, 2003-04 & 2004-05 are given hereunder: Technical Achievements during X Plan Period 200304 64,990 83.65 200405 42,154 50.57 2005-06 (upto Sept. 05) 10,691 46.78 787.14 1.05 44.05

2002-03 IMPORT Import Permit issued Imported Seeds/Propagation screened Imported material meant for consumption in Nos. Nos. in lakh MTs Nos. in lakh MTs in lakh 55,476 74.39 1078.06 4.62 67.45

1582.07 1655.00 10.15 102.5 18.22 70.77

EXPORT Export Certification (PSC) Quantum of Plants/plant materials screened Nos. Nos. in lakh MTs in lakh Rs. in lakh 53,886 133.49 161.96 4771.47 72,995 132.77 196 93,967 45.11 106.15 51,697 41.65 40.15 2857.72

Fees realised

5732.68 5604.79


The details of scheme wise plan outlays during IX plan as well as X Plan are as under:Outlay ( Rs. In Crores) Sr. Name of Scheme IX Plan X Plan No. SCHEME: 1 Strengthening and Modernization of Pest Management Approach in India Components: A. Promotion of Integrated Pest management B. Locust Control and Research C. Training in Plant Protection D. Implementation of Insecticides Act Total SCHEME: 2 Strengthening and Modernization of Plant Quarantine Facilities in India Grand Total (Scheme 1+2)

44.72 07.85 03.96 18.50 75.05 45.77

66.75 08.64 04.66 19.90 99.95 96.01




1. Agriculture is the main stay of the Indian economy as its performance is dependent upon the growth of Agriculture sector. It contributes nearly 22% of Indias Gross Domestic Product (GDP) & 13% of total exports. It provides employment to 57% of the countrys work force and livelihood security to more than 650 million people. 2. A Plan outlay of Rs. 13200.00 crore was approved for the Department of Agriculture & Cooperation (DAC) for the Tenth Five Year Plan as against an outlay of Rs. 9153.80 crore in the Ninth Five Year Plan. Thismplied an increase of 44.20 percent in the plan allocation. During the first three years of the Tenth Plan, Department utilized 99.39% of its Revised outlay of Rs. 1667.00 crore in 2002-03, 97% of Rs. 2120.00 crore in 2003-04 and 90.18% of Rs. 2945.00 crore in 2004-05. In the current Annual Plan 2005-06, an outlay of Rs. 4179.32 crore has been approved. The thrust areas, inter-alia, include increase in the production and productivity of various crops including oilseeds and pulses; diversification to the high value crops; strengthening of agriculture marketing infrastructure; promotion of agriculture extension; promotion of water and soil conservation through watershed approach under natural resources management; and extended insurance scheme for risk management. In addition, an outlay of Rs. 30.00 crore has been provided for State Plan Scheme Watershed Development in Shifting Cultivations Area in North Eastern States.



AGRICULTURAL MECHANISATION PROGRAMME : The Governmental programmes related to agricultural mechanization lay emphasis on selective mechanization with the aim of optimal utilisation of the available sources of farm power. Various promotional schemes have been undertaken for the replacement of traditional and inefficient implements and hand tools by improved ones to enable the farmers to own tractors, power tillers, power driven equipment, improved bullock drawn equipment/hand tools etc. through element of subsidy and their popularization through demonstrations. The programmes related to human resource development and testing and evaluation of agricultural equipments have been undertaken to further enhance the pace of mechanisation. STATUS OF MECHANISATION : During the last 10 years about 22.9 lakh tractors and 1.50 lakh power tillers were sold in the country. At present the estimated population of tractors and power tillers in the country is about 30 lakh and 2.00 lakh respectively. The adoption of agricultural machinery, particularly tractors and other power driven equipment was more common in the Northern States of Punjab, Haryana, Rajasthan and Uttar Pradesh. However, the same is now picking up in the States of Madhya Pradesh, Bihar, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu also. The demand of power tillers has also picked-up mainly in the rice growing States like West Bengal, Assam and other North Eastern States, Tamil Nadu, Karnataka, Andhra Pradesh, Kerala and Orissa. During the year 2004-05 total 2.48 lakh tractors were sold with highest number of tractors sold in Uttar Pradesh and during the same year the State of West Bengal was leading in adoption of power tillers which stood at about 4336 nos. The demand of agricultural equipment in different States has large variations. As a result, the average farm power availability is presently estimated at 1.35 kw/ha, whereas in the States of Punjab, Haryana, Uttar Pradesh, Andhra Pradesh the availability of power is more than the national average, the States of Orissa, Chattisgarh, Jharkhand, Himachal Pradesh, Eastern Uttar Pradesh, hilly areas of Uttranchal and NE States have very low level of mechanization. The available data through Livestock Census and other reports indicate that the contribution of Draught Animal Power (DAP) in Indian Agriculture has been declining over the years. The contribution of DAP in the year 1971-72 was of the order of 45.3% which, presently, is estimated to be about 9.5%. CENTRAL SECTOR SCHEME 'PROMOTION & STRENGTHENING OF AGRICULTURAL MECHANISATION THROUGH TRAINING, TESTING & DEMONSTRATION : This Division is implementing a restructured Central Plan Scheme namely "Promotion and Strengthening of Agricultural Mechanization through Training, Testing and Demonstration" by integrating the erstwhile two schemes namely Strengthening of Farm Machinery Training & Testing Institutes (FMT&TI) at Budni (M.P.), Hissar (Haryana), Garladinne (A.P.), Biswanath Chariali (Assam) and Demonstration of Newly Developed Agricultural Equipment including Horticultural Equipment at Farmers Field with a budget outlay of Rs. 25 crore during Tenth Plan. The B.E. for the current

year is 1000.00 lakhs. The main components of this restructured scheme are Training, Testing, Demonstration and Outsourcing of Training. (i) TRAINING AND TESTING : As a support to the promotion of agricultural mechanisation, Farm Machinery Training and Testing Institutes were set up at Budni (M.P.) in 1955, Hissar (Haryana) in 1963, Garladinne, District Anantapur in 1983 and Biswanath Chariali (Assam) in 1990. These Institutes have since then engaged in developing human resource for agricultural mechanisation and ascertaining the performance characteristics of agricultural machinery/implements for improvement in their quality. To achieve this objective, besides undertaking testing of farm machines for various performance parameters, the FMTTIs have also been conducting different types of training programmes in the selection, operation, repair/maintenance and management of farm machinery for the benefit of nominees of Central/State Governments, Private Organization, retired/retiring Defence Personnel, technician, rural youth, farmers and Foreign Nationals, sponsored under bilateral/international programmes. These institutes have been playing a vital role in the development of Human Resources for farm mechanization and effective improvements in the quality of agricultural equipments through their performance testing and evaluation. Since inception, these Institutes have trained 85,855 persons and tested 2,105 machines till 30th September, 2005. (ii) OUTSOURCING OF TRAINING AND DEMONSTRATION OF NEWLY DEVELOPED AGRICULTURAL EQUIPMENTS INCLUDING HORTICULTURE EQUIPMENTS AT FARMERS FIELD. Outsourcing of Training is a new component approved for the Tenth Plan in order to train large number of farmers at nearby places. The Tenth Plan outlay is Rs.250.00 lakhs to conduct training programmes for 10000 farmers through identified institutions by the State Government. The training programme shall be arranged through the identified institutions by each state namely State Agricultural Universities (SAUs), Agricultural Engineering Colleges/Polytechnics etc. This Division has released Rs.73.00 lakh and Rs.30.60 lakh during 2004-05 and 2005-06 upto September, 2005 respectively to various State Governments to conduct training programmes to farmers through identified institutions. With the objective of induction of improved/new technology in the agricultural production system, a scheme namely Demonstration of Newly Developed Agricultural Equipment Including Horticultural Equipment at Farmers Field is under implementation from 1999-2000. This now form a component in the restructured scheme as stated above. The tenth plan outlay for this component is Rs.500.00 lakh for conducting 6000 number of demonstrations at Farmers field. The component envisages conduct of demonstrations of improved/newly developed agricultural/horticultural equipment at farmers field to acquaint them about their use and utility for production of different types of crops. So far, funds amounting to Rs.640.28 lakh have been released to the State Governments and Government Organizations viz. ICAR, SFCI, of which Rs.75.00 lakh, Rs.128.34 lakh and Rs.292.82 lakh were released during 2002-03, 2003-04 and 2004-05 respectively. During the current financial year (2005-06), as on date 30th September, 2005 an amount of Rs. 144.12 lakh have been released. For implementation of the scheme, funds have been released to 26 States and two organizations viz. ICAR & SFCI

from whom proposals were received for assistance under the scheme. These funds were released for conducting of demonstrations of the new equipment like Zero-till-seed-cumfertiliser drill, strip till drill, raised bed planter, rigder seeder, inclined plate planter, rotavator, sugarcane cutter planter, potato planter, Vertical conveyer reaper, straw reaper, rice transplanter, garlic planter, vegetable transplanters, low lift pump, axial flow thresher, power weeder, improved manually/bullock operated equipment etc. priotised/identified by the States for demonstrations. Conduct of 9871 nos. of field demonstrations on different new equipment in an area of 7249 ha. for field machines and for 5654 hours for the stationary machines has been reported during the period from 2002-05 (upto 30.9.2005). So far about 5.19 lakh farmers have participated in the demonstration programmes. The Budget for 2004-05 and 2005-06 for both these components is provided under one Major Head. Accordingly, an amount of Rs.160.00 lakh for 2004-05 and Rs.540.00 lakh in the B.E. for 2005-06 is provided respectively. An expenditure of Rs.365.82 lakh is incurred for 2004-05 and Rs.174.72 lakh is incurred for 2005-06 (upto September, 2005). (iii) MACRO MANAGEMENT OF AGRICULTURE : The erstwhile Centrally Sponsored Scheme Promotion of Agricultural Mechanisation among Small Farmers now forms a part of Macro Management Scheme. Besides the other crop specific schemes viz. ICDP (Rice, Wheat & Coarse Cereals), SUBACS, SZDP, having agricultural machinery as one of the components, have also been merged into Macro Management Scheme. Government assistance in the form of subsidy on agricultural implements and machines is now available under the scheme. During the year 2005-06 over all allocation by the Sates for mechanisation is about 12.42% of the total central grant for the year. 14. NATIONAL COMMISSION ON FARMERS The Government of India set up in February, 2004, a National Commission on Farmers to examine, recommend policies, programmes and measures on various issues confronting Indian Farmers and suggest appropriate interventions for improving the economic viability and sustainability of diversified agriculture including horticulture, livestock, dairy and fisheries and for doubling the farmers income. The Commission was reconstituted in November, 2004 and its terms of reference were also revised to address the larger issues. Dr. M.S. Swaminathan heads the Reconstituted Commission. Besides him, the Commission comprises two full time Members, one Member Secretary and four Part-Time Members. The issues to be addressed by the Commission include inter-alia:?? Work out a comprehensive medium-term strategy for food and nutrition security in the country in order to move towards the goal of universal food security, over time. ?? Propose methods of enhancing the productivity, profitability, stability and sustainability of the major farming systems of the country, based on an agroecological and agro-climatic approach and the harnessing of frontier technologies. ?? Bring about synergy between technology and public policy and recommend measures for enhancing income and employment potential in rural areas through

diversification, application of appropriate technology including IT for information on market, weather, credit facilities and e-commerce, training and market reforms. ?? Suggest measures to attract and retain educated youth in farming and recommend for this purpose methods of technological upgrading of crop husbandry, horticulture, animal husbandry, fisheries (inland and marine), agro-forestry and agro-processing and associated marketing infrastructure. ?? Suggest comprehensive policy reforms designed to enhance investment in agriresearch, substantially increase flow of rural credit to farmers including small and marginal, triggering agricultural growth led economic progress, which can lead to opportunities for a healthy and productive life to rural families; ?? Formulate special programmes for dryland farming for farmers in the arid and semi-arid regions, as well as for farmers in hilly and coastal areas in order to link the livelihood security of the farming communities living in such areas with the ecological security of such regions. Review in this context all ongoing Technology Missions like those relating to pulses, oilseeds, maize, cotton, watershed etc. and recommend methods of promoting horizontal integration of vertically structured programmes. Also, suggest credit-linked insurance schemes, which can protect resource poor farm families from unbearable risks. Further, suggest methods of strengthening and streamlining the National Horticulture Development Board. ?? Suggest measures for enhancing the quality and cost competitiveness of farm commodities, so as to make them globally competitive through providing necessary facilities and application of frontier sciences and promote quality literacy for codex alimentarius standard, sanitary and phyto-sanitary measures among farmers through reorienting and retooling extension machinery. Also, suggest methods of providing adequate protection to farmers from imports, when international prices fall sharply. ?? Recommend measures for the credit, knowledge, skill, technological and marketing empowerment of women, taking into consideration the increasing feminization of agriculture and the proposed conferment of right to land ownership. ?? Suggest methods of empowering male and female members of elected local bodies to discharge effectively their role in conserving and improving the ecological foundations for sustainable agriculture, like land, water, agrobiodiversity and the atmosphere, with priority attention to irrigation water. The Commission has so far submitted two Interim Reports to the Government. These Reports are under examination in consultation with all Ministries/Departments concerned. The Commission is to submit its final Report to the Government latest by 13th October, 2005. AGRICULTURE COORDINATION COMMITTEE Agriculture which holds the key to enhancing economic growth rate and removing rural distress, is a top priority area for the Government. Transforming agriculture and expediting its growth require initiatives at all stages of agriculture production from the supply of inputs and credit to post-harvest management. These include, inter-alia, revamping the agricultural research and extension system, improving

the supply of inputs, promoting crop diversification, improving production practices, ensuring efficient water utilization, improving the functioning of markets, and improving the delivery chain from farmers to consumers. These matters are currently dealt with by a large number of Ministries/Departments such as Agriculture & Cooperation, Agricultural Research and Education, Food and Civil Supplies, Fertilizers & Chemicals, Irrigation, Animal Husbandry and Dairying, Food Processing Industries, Commerce, etc. So, to enable a systematic approach to policy formulation in these areas and to promote coordination and Inter-Departmental action, it has been considered to establish an Agriculture Coordination Committee chaired by the Prime Minister. The Committee would be the key mechanism for providing institutional support to decision-making in this area. The composition of the Committee would be as follows: i) Prime Minister: Chairman ii) Minister for Agriculture and Food & Civil Supplies & Consumer Affairs iii) Minister for Fertilizers and Chemicals iv) Minister of Finance v) Minister for Commerce & Industry vi) Minister for Water Resources vii) Minister of Rural Development viii) Minister of State for Food Processing ix) Minister of State for Science & Technology x) Deputy Chairman, Planning Commission xi) Chairman, Economic Advisory Council xii) Chairman, National Commission on Farmers xiii) Member(Agriculture), Planning Commission xiv) Principal Secretary to PM: Convenor Secretaries of the Ministries/Departments concerned would be permanent invitees. The Chairman could invite any Minister/Officer depending upon the context. The Committee would be serviced by the Prime Ministers Office. Tasks before the Committee (a) Identify key areas that require fresh policy initiatives, particularly those of an inter-sectoral nature. (b) Outline the follow-up action that needs to be taken to implement identified policy initiatives. (c) Identify institutional mechanisms to implement policies and programmes. (d) Monitor key policy initiatives. (e) Commission studies which would be inputs in arriving at decisions. 15. Drought Management According to India Meteorological Department (IMD), during South-West Monsoon 2005 (1.6.2005 to 30.9.2005), the country as a whole has received 879.3 mm rainfall against normal average of 892.5 mm, with a deviation of - 1%. Apart from few North-Eastern States, the other States which received deficient rainfall during the period were Bihar (-22%) and Jharkhand (-35%). Out of 36 Meteorological sub-divisions in the country, 9 received excess rainfall, 23 received normal rainfall and 4 received deficient rainfall.

2. Jharkhand has declared the entire State as drought affected but has so far not sought any assistance from the National Calamity Contingency Fund (NCCF), etc. 3. Andhra Pradesh had issued a declaration regarding continuance of drought like conditions in 644 Mandals of the State. It is, however, likely that with rains during the last month have substantially modified the situation. The State Government has been advised to reappraise the situation. 4. During 2004-05, a total assistance of Rs. 934.97 crores from National Calamity Contingency Fund (NCCF) was released. In addition, 24.90 lakh MTs of foodgrains was also allocated to the States from the Special Component of SGRY, free of cost, for undertaking relief employment. State-wise details are enclosed. 5. Although there is considerable rainfall deficiency in Bihar, no declaration of drought or report of Crop failure has so far been received from the State. Assistance provided for Drought 2004-05 S. No. State NCCF (Rs. in crores) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Andhra Pradesh Bihar Chhattisgarh Jharkhand Karnataka Madhya Pradesh Maharashtra Rajasthan Tamil Nadu Uttar Pradesh 40.01 162.15 52.74 -49.14 1.70 103.07 * 216.79 117.27 192.10 934.97 Foodgrains (under special component of SGRY) (Lakh MTs) 4.20 2.00 0.90 0.67 1.14 1.00 -13.49 1.50 -24.90

16. Title Macro Management of Agriculture Scheme - Supplementation/Complementation of States efforts through Work Plan (Macro Management) Type Centrally Sponsored Scheme Objective Macro Management Scheme aims at all round development in agriculture through Work Plans prepared by States themselves. These include: ?? Reflection of local needs/crop/regions specific/priorities etc.; ?? Providing flexibility and autonomy to States;

* for Drought/Hailstorm. NCCF National Calamity Contingency Fund. SGRY Sampoorna Grameen Rozgar Yojana. Macro Management

?? Optimum utilization of scarce financial resource; ?? Maximization of returns; ?? Removal of regional imbalances. Salient Features It was decided to move away from schematic approach to Macro Management mode by integrating 27 Centrally Sponsored Schemes. The previous pattern of rigid uniformly structured Centrally Sponsored Schemes, permitting little or no flexibility, which resulted in large unutilized balances with States has been dispensed with. Integration of Centrally Sponsored Schemes under Macro Management approach will enhance the productivity of support programmes and accord greater flexibility to State Governments to develop and pursuer activities on the basis of regional priorities. It is, thus, a major step towards achieving decentralization in pursuance of restoring primacy of States in agricultural development planning. The Central Government will supplement/complement the State Governments efforts through regionally differentiated Work Plans comprising crop/area/target group specific interventions, formulated in an interactive mode and implemented in spirit of partnership with the States. With the launch of new Centrally Sponsored Scheme- National Horticulture Mission, the ten schemes pertaining to Horticulture Development earlier subsumed under the scheme have been taken out of the Macro Management Scheme. The list of the remaining 17 schemes is enclosed at Annexure-I. Pattern of assistance The outlay of the Work Plan would be shared by the Centre and the States in the ratio of 90:10. In the case of North Eastern States, however, the entire expenditure will be borne by the Government of India. Central assistance for Work Plans will be in the ratio of 80% by Grants and 20% by Loans. Eligibility All States/UTs Date of Start November 2000 Guidelines The Government has approved separate guidelines for implementation of the Scheme. According to these guidelines the 50% of the allocation is to be released as First Instalment to the States/UTs. The release of Second and final instalment is governed by the prescribed conditions. Copy of the guidelines is at Annexure II & III.

Implementation Status The position regarding Budget Estimates, Revised Estimates and expenditure incurred under the scheme for the years 2000-2001 2001-2002, 2002-2003, 2003-04 & 2004-05 is as indicated below: Year (Rs. in Crores) Budget Estimate Revised Estimate Expenditure

2000-01 490.00 381.88 381.88 2001-02 850.00 680.49 678.62 2002-03 736.86 597.00 597.59 2003-04 700.00 648.60 648.49 2004-05 719.94 1189.20 1188.81 During the current financial year viz. 2005-06 a sum of Rs. 912.62 Crores has been provided in the Budget for implementation of the scheme. As the ten schemes pertaining to Horticulture development have been taken out of Macro Management Scheme, it has been decided to re-appropriate a sum of Rs. 100.00 Crores to the National Horticulture Mission. Thus a sum of Rs. 712.62 Crores is available for implementation of the scheme during 2005-06. Out of 712.62 Crores, a sum of Rs. 707.62 Crores has been earmarked for release to the States/UTs. The Statement (Annexure IV) showing the State/UT wise allocation for 2005-06, details of 1st and 2nd installment released is enclosed. Subsidy Subsidy is available under the Scheme on various components including agriculture implements such as Tractor, Power Tiller, Power Thrashers, Sprinklers and Plant Protection Equipments. Subsidy is also available on certified quality seeds and IPM demonstrations. Subsidy per farmer or per activity should not exceed 25% of the cost or the present subsidy level approved under 27 identified schemes, whichever is lower.

Annexure - I

LIST OF CENTRALLY SPONSORED SCHEMES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16 17. Assistance to Coop. Weaker Section Assistance to Women Cooperatives Non-overdue Cover Scheme Agri. Credit Stabilization Fund Special Scheme for SC/ST Integrated Cereal Development Programmes in Rice Based Cropping System Areas Integrated Cereal Development Programmes in Wheat Based Cropping System Areas Integrated Cereal Development Programmes in Coarse Cereals Based Cropping System Areas Special Jute Development Programme Sustainable Development of Sugarcane Based Cropping System Balanced & Integrated Use of Fertilizer Promotion of Agricultural Mechanization among Small Farmers Scheme for Foundation & Certified Seed Production of Vegetable Crops National Watershed Development Project for Rainfed Areas Soil Conservation in Catchments of River Valley Projects & Flood Prone Rivers Reclamation & Development of Alkali Soils State Land Use Board







(a) The work plan would indicate the physical targets and the benefit stream in terms of area, production level, productivity etc. (b) The outlay of the Work Plan would be shared by the Centre and the States in the ratio of 90: 10 respectively. In the case of North-Eastern States, however, the entire expenditure will be borne by Government of India. (c) The Central assistance to the States for the Work Plan will be in the ration of 80% Grant and 20% Loan. (d) New initiative by State Government will be governed by the following criteria :It would not be covered under any other approved Scheme of Central Government. It would not be part of the any on-on-going State Scheme. Expenditure on new initiative would not be more than 10 % of the allocation to a State under the Scheme of Macro Management.

(e) There should be cap on subsidy to farmers incorporated in the Work Plans. Subsidy per farmer or per activity should not exceed 25 % of the cost or the present subsidy level approved under 27 identified schemes, which ever is lower. However, considering the difficulty in operationalising this decision in the middle of the Plan period, it may be brought into effect from the 10th Plan (f) While the Union Department of Agriculture & Cooperation would have flexibility for reallocation, expenditure under the individual component would not be in excess of 20% of what has been incurred in the last year. (g) Creation of posts and purchase of new staff vehicles should not be included in the Work Plans.

Annexure III GUIDELINES FOR THE IMPLEMENTATION OF MACRO MANAGEMENT SCHEME 1. The permissible carry over of unspent balance in the first year of operation would be 25% of the annual allocation. This permissible carry over would be reduced by 5% every year so that the permissible carry over is brought down to 10% of annual allocation over a period of 4 years. 2. year. 50% of the annual allocation would be released as first installment of a financial

3. The release of second and final installment would be considered on the fulfillment of the following conditions. (i) Utilization Certificate for the funds released up to the previous financial year.

(ii) Expenditure of at least 60% of available funds i.e. unspent balance of the previous year plus the releases in the first installment. (iii) Full release of the corresponding share of the State Government. 4. The second release would be made during the period from October to March. The request for second installment may be made by the implementing agencies (States/UTs) by October. Releases would be made on graded basis depending on the time of reporting utlization as also the receipt of complete proposal for second installment. The graded release would be on principles as indicated below :Proposals received in : October to December January February March 50% of allocated funds 40% of allocated funds 30% of allocated funds 20% of allocated funds

5. Any excess over the permissible limit of 25% carry over will be adjusted in the 2nd installment.

Annexure -IV Macro Management of Agriculture



Allocation Central for 2005-06 Assistance released as 1st instt. for 200506 3300.00 1420.00 1720.00 1700.00 1800.00 200.00 2200.00 1600.00 1600.00 3000.00 1300.00 4700.00 2400.00 3900.00 6850.00 1600.00 1800.00 1600.00 1800.00 2000.00 1100.00 5800.00 1422.00 3600.00 1700.00 5800.00 1700.00 2500.00 50.00 100.00 280.00 20.00 200.00 70762.00 1650.00 710.00 860.00 850.00 900.00 100.00 1100.00 800.00 800.00 2250.00 650.00 2350.00 1200.00 1950.00 3425.00 800.00 900.00 800.00 900.00 1000.00 2900.00 711.00 1800.00 850.00 2900.00 850.00 1250.00 10.00 35.00 5.00 15.00 35321.00

Central Assistance released as 2nd instt. for 2005-06





Food grain production in the country accrues from 142 million hectares of cultivated land. Of this, 40 percent is irrigated and accounts for 55 percent of production. The remainder 85 million hectares are rainfed and contribute 45 percent to total output. Rainfed agriculture is complex, diverse and risk-prone and is characterized by low levels of productivity and low input usage. Vagaries of the monsoon result in wide variation and instability in yields. Rainfed areas therefore need to contribute substantially to incremental output by producing marketable surpluses more reliably. Government of India has accorded very high priority to the holistic and sustainable development of rainfed areas through integrated watershed development approach. The key attributes of the watershed approach are conservation of rainwater and optimization of soil and water resources in a sustainable and cost effective mode. Improved moisture management increases the productivity of seeds and fertilizer. Conservation and productivity enhancing measures are thus complementary. NATIONAL WATERSHED DEVELOPMENT PROJECT FOR RAINFED AREAS (NWDPRA)(under Macro-management mode of funding) The NWDPRA is the main scheme of the Department for watershed development of rainfed area. The NWDPRA was launched in 1990-91 during Eighth Five Year Plan in 25 States and 2 Union Territories. The project continued during Ninth Five Year Plan in all 28 States (including 3 newly formed States of Uttaranchal, Jharkhand & Chattisgarh) and 2 UTs. of Andaman & Nicobar Islands and Dadar & Nagar Haveli. The broad objectives of the NWDPRA are as follows: ?? Conservation, development and sustainable management of natural resources including their use. ?? Enhancement of agricultural productivity and production in a sustainable manner. ?? Restoration of ecological balance in the degraded and fragile rainfed ecosystem by greening these areas through appropriate mix of trees, shrubs and grasses. ?? Reduction in regional disparity between irrigated and rainfed areas. ?? Creation of sustained employment opportunities for the rural community including the landless. During Eighth Five Year Plan, against a target of 28.00 lakh ha., an area of 42.23 lakh ha. was developed through implementation of the project spread over in 2554 watershed with an expenditure of Rs.967.00 Crores During Ninth Five Year Plan, an area of 27.66 lakh ha. has been developed against a target of 22.5 lakh ha. with an expenditure of Rs.910. 80 Crores The scheme of NWDPRA has been subsumed with Scheme for Macromanagement of Agriculture- Supplementary/ Complementary of the States efforts through work plans from 2000-01.

The NWDPRA has been radically restructured for implementation during IXth & Xth Plan in conformity with the Common Approach for Watershed Development jointly adopted by the Ministries of Agriculture and Rural Development. The WARASA-Jan Sahbhagita guidelines have been brought out in conformity with the Common Approach. The restructured NWDPRA allows a much greater degree of flexibility in choice of technology, decentralization of procedures, and provision for sustainability. It ensures active participation of the watershed community in the planning and execution, convergence of on-going production programmes and strong mechanism for monitoring and evaluation of the programmes. The scheme is being continued for implementation during Xth Plan under the revised guidelines with peoples participation covering more than 6000 microwatersheds. It is estimated to develop an area of about 2.0 million hectares during Xth Plan at an estimated cost of Rs 1000.00Crores. The cumulative area developed in the first three years of the Xth Plan is 9.57 lakh hectares at a cost of Rs. 519.82 Crores. Some of the benefits of NWDPRA are as under : ?? The programme has provided employment opportunity to local people through various development activities in the watershed area. ?? The programme has benefited the farmers through increased production and productivity of various crops in a sustainable manner. ?? The programme has helped in restoration of ecological balance through plantation of trees, shrubs and grasses, etc. in the project areas. ?? In some of the drought prone States, water-harvesting structures have provided improved drinking water facilities. ?? The improved ground water recharge due to various soil and water conservation measures has helped farmers in bringing more area under cultivation. ?? The programme has helped in reducing soil losses and improving water conservation. ?? The new mode of peoples participation, i.e., involving watershed community in various activities to be carried out in the watershed, has empowered the local communities. ?? The flexibility in choice of technology has helped in introduction of location specific and low cost indigenous technologies in the watershed. ?? Landless families are benefited in livestock, service and agro processing sectors. ?? There is a provision under the programme for popularizing new dry land farming techniques through demonstration at farmers fields. This has encouraged farmers to adopt new farm technologies for better yields. WATERSHED DEVELOPMENT FUND(WDF) As a follow up action to the Union Finance Ministers Budget (1999-2000) Speech, a Watershed Development Fund(WDF) has since been established at NABARD with the objective of integrated watershed development in 100 priority districts in 18 States through participatory approach. The total corpus of the WDF is Rs.200.00 Crores which includes Rs.100.00 Crores by NABARD and a m atching contribution of Rs.100.00 Crores by Department of Agriculture & Cooperation, Government of India. The fund is being utilized to create the necessary framewotk conditions to replicate and consolidate

the isolated successful initiatives under different programmes in the government, semigovernment and NGO sectors. The activities under the WDF are being taken up under the guidance of a High Powered Steering committee constituted with representatives from theMinistry of Agriculture, Ministry of Rural Development, Ministry of Finance(BankingDivision), representatives of State Governments, NABARD and selected NGOs from different States. The secretarial support is provided by NABARD. Minisltry of Agriculture is the nodal Ministry for this purpose. Eleven States are effectively participating in the programme. The progress so far made are: i. A total number of 367 projects (45 grant & 322 loan component) were sanctioned under Capacity Building Phase(CBP) with a grant assistance of Rs.17.63 Crores covering an area 3.50 lakh ha. A total number of 189 projects(21 grant & 168 loan) were sanctioned with a grant assistance of Rs.1.80 Crores for preparation of Project Feasibility Report(FR). 101 have graduated into Full Implementation Phase(FIP) (77 Loan projects with a loan assistance of Rs. 35.55 Crores and 24 grant component projects with a grant assistance of Rs. 11.65 Crores).



WATERSHED DEVELOPMENT COUNCIL(WDC) Watershed Development Council(WDC), created in 1984 as a Techno Secretarial arm of the World Bank assisted projects, is technically staff oriented unit set up under Rainfed Farming Systems Division(RFS Division) of the Ministry of Agriculture, Government of India to service externally aided agriculture sector projects and Centrally Sponsored Schemes/National Projects operational in various parts of the country. Activities of the Council include monitoring periodic physical and financial progress of the projects, conducting mid term and other periodic reviews along with the supervision missions of the donor countries, providing technical assistance to the projects through appointment of independent consultants, conducting impact evaluation studies of the treated areas and capacity building of the community for planning and implementation of the project activities. During the Xth Plan an amount of Rs.12.00 Crores has been allocated under WDC and an amount of Rs.0.73 Crores has been utilized during the year 2004-05. Externally Aided Projects: A number of externally aided projects in the area of Integrated Watershed Development are also being implemented during the Tenth Five Year Plan. Ministry of Agriculture is involved in the supervision, coordination and monitoring of these Projects. The funds for these Projects are directly given to the State Governments 1. Integrated Watershed Development Project (IWDP-Hills-Phase-II) The objective of the Project is to restore the productive potential of the Shivalik hills in the States of Haryana, HP, J&K, Punjab and Uttaranchal using cost effective watershed treatment technologies and community participation approach. The Project

was started in September 1999 and it will end in September 2005. An area of 2.05 lakh hectares is to be developed at a cost of Rs.902.84 Crores. An area of 2.20 lakh hectare at a cost of Rs 851.92 Crores has been developed till March, 2005. The Project also lays emphasis on developing rural infrastructure including roads and market facilities. 2. Karnataka (Sujala) Watershed Development Project The objective of the project is sustainable alleviation of poverty in rainfed areas in five districts of Karnataka namely, Chitradurga, Dharwad, Haveri, Kolar and Tumkur by improving production potential and natural resources base through strengthening institutional arrangement. The project was started in Sept. 2001 and will end in March 2007. Against the project area of 4.27 lakh hectares, an area of 3.73 lakh ha is to be developed at the cost of Rs 677.73 Crores. An area of 84,000 hectares has been developed at the cost of Rs. 110.53 Crores till March,2005. The project also lays emphasis on strengthening the capacity of the communities in the project area. 3. Uttaranchal Decentralized Watershed Development Project Uttaranchal Decentralized Watershed Development Project has been launched in September, 2004. The project aims at improving the productive potential of natural resources and increasing incomes of rural inhabitants in selected watersheds through socially inclusive, institutionally and environmentally sustainable approaches. The project envisages Participatory Watershed Development and Management, enhancing Livelihood Opportunities and Institutional Strengthening. Total cost for this project is US$ 89.35million (World Bank Assistance of US$ 69.62 million) for a period o 8 years. f The project area covers nearly 3.0 lakh ha area. As on March 2005, Rs.1.295 Crores have been spent for preparatory activities. 4. Assam Agricultural Competitiveness Project (AACP) Assam Agricultural Competitiveness Project (AACP) has been launched on 24.2.2005 and will close on 31.3.2010. The project aims to increase the productivity and market access of targeted farmers and community groups and to stimulate growth of Assams agricultural economy emphasizing project activities predominantly propoor and focusing primarily at small and marginal landholders, poor fishing communities and the landless. Project Cost is 214.33 USD Million (Credit Amount is US$154 M).


German (Kreditanstant For Widderaufbau) Assisted Project - Maharastra The objective of the project is to develop micro-watersheds in a comprehensive manner in order to create adequate and sustainable livelihood opportunities for the inhabitants of the project area with active participation of NGOs. The project was stared in December 1991 and it will end in December 2005. The project is being implemented by NABARD through NGOs. An area of 0.45 lakh hectare is to be developed at a cost Rs.56.23 Crores . An area of 62,673 hectares including carry over area of Phase-I has been developed at a cost of Rs. 51.29 Crores till March, 2005.

DANIDA AIDED PROJECTS 6. Comprehensive Watershed Development Project Madhya Pradesh Phase-II The objective of the project is to establish sustainable, ecologically sound and locally acceptable land use systems, enabling the rural communities, especially the tribal, to improve their livelihoods. The Project was started in May 2003 in Jhabua, Dhar and Ratlam districts of Madhya Pradesh and will end in December 2005. An area of 19,013 hectares is to be developed at a cost of Rs.12.48 Crores. An area of 12401 hectares at a cost of Rs. 6.17 Crores had been developed till June,2005. 18. Information Technology in Agriculture The Department of Agriculture & Cooperation (DAC) has formulated a scheme on Information Technology (IT) for achieving a more rapid development of agriculture in India during 10th Plan with a budgetary provision of Rs.100 crore. This scheme inter alia envisages Information dissemination, extension and advisory services, networking of agriculture sector, creating reservoirs of data base with Union/state Governments for the long term benefit of ultimate user, the farmer in optimizing their productivity and income, The scheme will bring farmers , researchers, scientists and administrators together by establishing Agriculture on-line through exchange of ideas/information. The details of the scheme follows: Central Sector Scheme for Strengthening/promoting Agricultural Information System in the Department of Agriculture and Cooperation The Scheme has following components explained below: (i) IT Apparatus in DAC Headquarters The component basically meant for strengthening IT infrastructure at Headquarter has provided PCs to all the officers from the level of Section Officer and above. Local Area Network (LAN) has been established in Krishi Bhavan and Shastri Bhavan with the assistance of the National Informatics Centre (NIC). The website of this Department was launched on 13th April, 1999 and can be visited on the address: http://agricoop.nic.in. A multimedia Access Kiosk has been installed at Krishi Bhavan for providing information to public. Video conferencing facility has been established and being used frequently in the Department. Training in computers, including office automation is being provided to officers and staff of the Department. The Department has the following centralized email address: agrindia@krishi.nic.in. A pragmatic agenda for e-governance is also under implementation with the assistance and support of NIC. The website of the Department is updated regularly with the assistance of National Informatics Centre. As a part of implementation of e-Governance, INTRADAC (http://intradac.nic.in) developed by NIC and used over the LAN is a prime step towards making administration more responsive and paperless in the Department. Conversion of website of DAC into regional languages has been initiated. (ii) IT Apparatus in the Field Offices and Directorates of DAC Similarly, as part of e-Governance implementation , field offices and Directorates have been strengthened and effectively inter-connected by establishing ICT infrastructure in all the field units and Directorates (172 offices)(DACNET Project). E-mail/Internet connectivity has been provided to all the offices. E-Governance application packages have been installed. DACNET Portal (http://dacnet.nic.in) has been developed and

launched. DACNET Project has made significant contribution to bring Indian Agriculture on-line. Portals for various Directorates have been developed which enable web based on-line monitoring as a part of Govt.-to-Govt., Govt.-to-Farmer and Govt.-toBusiness (G2G, G2C, G2B) applications. This e-Governance project of the DAC has made it possible to improve the office productivity, dissemination of information and provide better service. Training of participants from field offices and Directorates has been conducted: Office Productivity Tools (OPT) 2687 participants, Data Creation and Analysis (DCA) 2137 participants; Decision Support Systems (DSS) 675 participants) and Geographical Information Systems (GIS 417 participants). (iii) Development of Agricultural Informatics and Communication (a) The objective of this component is to build up a reservoir of all data related to Agriculture and development of Web-enabled applications. It includes development of various portals, such as digitalization of soil mapping data SEEDNET, DATA WAREHOUSING, data management and training. For development of various Portals, separate Monitoring Committees for each portal have been constituted. A Steering Committee is providing overall supervision. (b) Kisan Call Centres The scheme was launched on 21st January, 2004. It aims to provide online information to farmers through 'Toll Free' number 1551. The entire country is covered under the scheme. The response to queries of farmers is being given in 21 languages. Over 11 lakh calls have been received till September, 2005. With a view to provide correct, consistent and speedy response to queries of farmers, a Knowledge Management System is being developed. The Telecom Consultancy India Ltd. (TCIL), who are consultant for the Department, has already short listed interested firms through completion of 'Expression of Interest' process. The Knowledge Management System is likely to be completed by March, 2006. The facility is being publicised among the farmers through Doorsarshan and AIR programmes and also by direct publicity campaign in the field. (iv) Agricultural Resources Information System (AgRIS) This component aims to develop 'Decision Support System' for optimum utilization of natural resources using GIS and RS technology. Work on two pilot districts covering two separate typologies is to commence during 2005-06 with the help of NIC. A total of eight typologies are to be covered in the pilot phase. (v) Strengthening of IT Apparatus in Agriculture and Cooperation in the States and Union Territories (AGRISNET) Government of lndia has launched a Central Sector Scheme titled, 'Strengthening/ Promoting Agricultural Informatics & Communications' of which one component is AGRISNET. The objective of AGRISNET is to provide improved services to the farming community through use of Information & Communication Tools (ICT). The AGRISNET project will be implemented in a projectised mode i.e. funds under AGRISNET will be provided to the State/UT Governments on the basis of specific project proposals submitted by them. Financial assistance will also be provided to States for preparation of project proposal for funding under AGRISNET. Several States are engaged in project preparation activities.

Activities in North-East Region Under the IT Apparatus in the field offices and Directorates of DAC (DACNET), the following offices in the North-Eastern Region are being networked; i) Directorate of Marketing & Inspection at Guwahati and Shillong, ii) Central Integrated Pest Management Centres at Guwahati, Aizawal, Dimapur and Gangtok; iii) Regional Bio-fertiliser Development Centre at Imphal and iv) North-Eastern Regional Farm Machinery, Testing and Training Institute, Sonitpur, Assam. OUTCOME : The Department of Agriculture and Cooperation has been providing valuable services to the citizen particularly the farmer in core sectors of Agriculture such as crops, crop-weather, agriculture extension, agriculture marketing, farm machinery, bio-fertilizer, plant protection and organic farming. These services enable a farmer to know about commodity prices, arrival of commodity in mandis, price comparison in various mandis, availability of seeds, fertilizer & other inputs in the marketplace, sowing time of crops, Minimum Support price of commodities, rainfall pattern, quality standards of inputs and many other aspects which help him a lot in decision making for optimizing his return from agricultural activity. The more important part, the scheme has played is to bring farmer community closer to Administration to help him in more than many ways even at times of eventualities such as weather vagaries forecasting doom for his crop. The Department has taken a few more e -Governance Initiatives in order further enhance the numbers & level of services to the farmer community, scientists, researchers, academicians & other stake holders by making information available on diziltised land & soil survey data, agricultural programmes on Doordarshan & AIR, facility of process automation & transaction under extension activities through our newly borne developmental portals under development. 19. TRADE LATEST DEVELOPMENTS AND OTHER POLICY ISSUES RELATING TO TRADE i. Repeal of Agriculture Produce Cess Act, 1940 and Produce Cess Act, 1966: Cabinet in its meeting dated 27.10.2005 has decided to repeal these two Acts so as to remove the cess on export of agricultural products. This will help increase export of agricultural products from India for which there remains a vast untapped potential. ii. Comprehensive Economic Cooperation Agreement (CECA) with Singapore : India and Singapore have signed a CECA. According to this Agreement, Singapore has agreed to bind its 0% duty in respect of agricultural products also. Singapore is an importer of agricultural products. This agreement should lead to increase in export of agricultural products from India to Singapore by providing a stable international trade regime.


Ongoing Preferential Trade Agreements(PTA)/Free Trade Agreements(FTA) negotiations: At present, India has FTAs with Thailand, Nepal, Bhutan and Sri Lanka and PTAs with SAARC countries under SAPTA and under the Bangkok Agreement with Bangladesh, Laos, Philippines, Republic of Korea, Sri Lanka, Thailand & China. Negotiations on PTAs/FTAs are at various stages of progress with ASEAN (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Cambodia, Lao PDR, Myanmar & Vietnam), MERCOSUR (Brazil, Argentina, Paraguay, Uruguay), BIMSTEC (Bangladesh, Bhutan, Myanmar, Nepal, Sri Lanka & Thailand), Chile, SAARC Countries (Bangladesh, Maldives, Nepal, Bhutan, Sri Lanka & Pakistan), and Mauritius. iv. Ongoing negotiations on the Agreement on Agriculture in the WTO. The Doha Round of negotiations at WTO has been termed as the development round of negotiations. For developing countries like India, with a large and mainly subsistence agricultural sector, the outcome of the negotiations in agriculture is of vital importance. India expects that during this round, the trade distorting practices followed in developed countries in the agriculture sector will be largely contained and eliminated. This includes a substantial and real reduction in trade distorting domestic support, reduction in tariff and other barriers on products of export interest to developing countries, elimination of export subsidies and a meaningful special and differential treatment for developing countries to enable them to achieve the goals of food security, livelihood security and rural development.

CONTENTS Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Title Trends in Indian Agriculture Crop Production Oriented Schemes Technology Mission on Oilseeds & Pulses Horticulture Agriculture Marketing Agriculture Extension Agricultural Credit Cooperation Seeds (Agriculture) Integrated Nutrient Management (INM) Plant Protection, Quarantine & Storage Plan Coordination Agricultural Implements & Machinery National Commission on Farmers Drought Management Macro-Management Rainfed Farming System Information & Technology Trade Page Nos. 1-4 4-6 6-7 7-8 8-11 11-15 15-19 19-21 21-24 24-25 25-39 40 41-43 43-45 45-46 46-52 53-57 57-59 59-60