AGRICULTURE SECTOR

OF INDIA
Presented by-
- Mahendra Singh Rajpurohit - 44
- Kishore Kumar Sharma - 24
- Chetan Telung -
- Amit Srivastav - 56
- Alok Kumar - 25
Introduction
 India's main occupation was agriculture from thousands of year.

 India was a agriculture based country .

- More then 60% of population was depend on agriculture
& agro. Related product.

- India's agriculture share more then 50 % in GDP.

 In 1963 green revolution.

 After 1991 total scenario has change

Five Year Plans
 Five Year Plans Overall GDP Agriculture &
growth rate Allied Sectors

 Seventh Plan (1985-90) 6.0 3.2

 Annual Plan (1990-92) 3.4 1.3
 Eighth Plan (1992-97) 6.7 4.7
 Ninth Plan (1997-2002) 5.5 2.1
 Tenth Plan (2002-07) 7.6 2.3
 2002-03 3.8 -7.2
 2003-04 8.5 10.0
 2004-05 (P) 7.5 0.0
 2005-06 (Q) 9.0 6.0
CATAGORIES IN AGRICULTURE
 FOOD CROPS;
Wheat, Rice, Maize, Bajra, Jwar, Barley
 PULSES;
Chana, Mung, Mogar
 CASH CROPS;
Tobacco, Cotton, Joot, Oil seeds,
Ground nuts, Castor oil, Castor seeds, Mustard oil
 PLANTATION;
Rubber, Tea, Coffee, Chili,
Ginger, Turmeric, Coconuts, garlic
 Horticulture;
Apples, Mangoes, Banana, Pine apple, Pares,
Almonds, Strawberry
 Area and production of major
horticultural crops
(Area-Million hectare, Production-Million tonnes)

2002-03 2003-04 2004-05 2005-06

Crops
-----------------------------------------------------------------------------------------------------
Area Production Area Production Area Production Area Production
Fruits 4.8 49.2 5.1 49.8 5.3 52.8 5.9 54.4

Vegetables 5.9 84.8 6.7 101.4 7.1 108.2 7.2 113.5

Spices 2.4 3.8 5.2 4 3.2 4.9 3.2 5.9

Plantation crops 3.1 13.1 3.3 9.4 3.1 10.4 3.2 9.8

Flowers 0.1 0.2 0.2 0.6 0.1 0.7 0.1 0.8

Others 0.09 0.9 0.1 0.3 0.4 0.4 0.4 0.5

Total 16.4 152.0 20.6 165.5 19.2 177.4 20.0 184.9

Agriculture Production Targets for
2006-07

Rice 80.78 12.02 92.80

Wheat - 75.53 75.53
Jowar 4.28 3.33 7.61
Bajra 8.55 8.55
Maize 12.54 2.85 15.39
Ragi 2.79 2.79
Barley - 1.65 1.65
Small Millets 0.53 0.53

Cereals 28.69 7.83 36.52

Total Pulses 5.78 9.37 15.15
Total Food grains 115.25 104.75 220.00
Cotton* 185.00 185.00
Jute** 101.20 101.20
Mesta** 11.60 11.60
Sugarcane 270.0

* Lakh bales of 170 kgs each

** Lakh bales of 180 kgs eachI
 (Million tonnes)
International comparisons of yield
Selected commodities–2004-05
RICE/PADDY WHEAT MAIZE
 Egypt 9.8 China 4.25 U.S.A 9.15
 India 2.9 France 7.58 France 7.56
 Japan 6.42 India 2.71 India 1.18
 Myanmar 2.43 Iran 2.06 Germany 6.69
 Korea 6.73 Pakistan 2.37 Philippines 2.1
 Thailand 2.63 U.K 7.77 China 4.9
 U.S.A 7.83 Australia 1.64
 ----------------------------------------------------------------------------------------
WORLD 3.96 2.87 3.38

Metric tones/ hectare

EXPORT

 Marine product $ 1323 mill

 Casunuts $ oil $ 804 mill
 Oil knocks $ 713 mill
 Wheat $ 512 mill
 Non basmati rice $ 467 mill
 Basmati rice $ 424 mill
 Meat & pip ration $ 349 mill
EXPORT…….

 Tea $ 347 mill

 Spices $ 332 mill
 Sugar $ 266 mill
 Tobacco $ 237 mill
 Process items $ 236 mill
 Coffee $ 236 mill
 Fruits
& vegetables $ 205 mill
 Row cotton $ 177 mill
IMPORT

 Vegetable oil (Palm oil) us $ 2457 mill

 Textile yarn us $ 1252 mill
 Pulses us $ 491 mill
 Fruits & nuts us $ 177 mill
 Spices us $ 126 mill
Stagnation in Agricultural Growth

 Deceleration in the growth rate of

agricultural production
 Stagnation in yields of important crops;
with larger intake of modern inputs
 Disappointing performance of
commercial crops
 Large fluctuations in the output prices
Economic Reforms in Indian
Agriculture
 Slow and cautious approach to reforms
 Main benefits due to reforms in non-
agricultural sectors
 Only major reform being abolition of
‘zones’ and emergence of the country a
single market for agricultural
commodities
 Privatization also got a fillip.
Factors Contributing to Agricultural
growth in Previous Decades
Performance of Agriculture in the last
decade was in sharp contrast to
performance in two previous decades.
The factors contributing to earlier growth
included
• larger investment in agriculture
• size neutral technology
• reforms in supporting systems
The Changed Circumstances

The next phase of reforms has to take into

account following circumstances
 Indian Agriculture is progressively acquiring
a small farm character
 The country is wedded to domestic
market reforms
 It is committed to an open global economy
 It is a democratic multi-party competitive polity.
Measures which need immediate
attention are

 review of the policy on input subsidies

 review of the policy on agricultural prices
 reforms in the support systems
 completing the unfinished agenda on
domestic market reforms.
Input Subsidies…
The rationale for input subsidies can be provided if
 Input is a new and risky input warranting sharing
of risks by the state
 It contributes to increase in productivity which is
shared both by the producers and consumers
 Subsidizing income is the only way to transfer
income to the poor producers
 In case of heavily traded products, the trading
partners are resorting to overt or covert
subsidization and there is no other way for redress
Input Subsidies

There is a need to “retreat without

disarray”
 Put a cap on subsidies
 Earmark the savings obtained for
investment in rural infrastructure
 Improve efficiency of input production
and supplies
 Involve users in the distribution of inputs
 Bring states on the common platform of
reforms.
Agriculture Price Policy

 Present policy is disfunctional and has

created serious distortions.

 The major weakness arises due to the

fact that we are using administrated
prices as vehicle for income transfer.
Agriculture Price Policy

Reforms in Agriculture Price Policy will include

 Long-term strategy to strengthen crop
insurance and forward trade.
 In the interim, the scope and coverage of MSP
be limited.
 A price band may be announced to trigger
open market operations.
Agriculture Price Policy

 Procurement operation should be organised

strictly as business operation
 Responsibility for PDS should be passed on to
states, and subsequently to lower units of
Panchayati Raj.
 Better coordination between price policy and
trade policy should be ensured.
Economic Reforms

 Emphasise reforms in the support

institutions i.e., institutions to provide
research, extension, credit and
marketing services
Reforms in Support Systems

To strengthen Rural Financial Institutions

address some of the critical problems
 Improve absorptive capacity of the borrowers
with emphasis on investment in infrastructure
 strengthen channels of investment credit.
 use various options available to reduce
transaction cost.
Reforms in Support System (RFI)

 Mitigate risk at borrowers’ level with crop

insurance and forward trade .
 Mitigate risk for RFI through an
Agricultural Risk Fund contributed by the
Centre, states and banking institutions
Problems

There were and continue to exist certain weak

spots in Indian agriculture. These are
• degradation of land and water resources
• low value production
• declining productivity of ‘modern’ input, and
• inefficient support systems.
THANKS