|
Year End Review
A number of initiatives were taken during the year by the Government with a long- term perspective. Many major programmes are being launched which will generate vibrancy and fast growth in the agriculture sector and bring investment into it.
During the year, the Centre was engaged in intensive discussions with the States and called a series of Minister-level Conferences to discuss policy, changes and reforms in cooperatives, marketing, horticulture, rainfed farming, micro irrigation, dairy development and animal husbandry.
The Government will soon launch four major programmes with an outlay of over Rs. 16,000 crore for the next three years. The projects are (i) the National Horticulture Mission (Rs.6500 crore), (ii) a micro irrigation project (Rs.7600 crore), (iii) a project on rainfed agriculture (Rs.2150 crore) and (iv) the Bamboo Mission (Rs.500 crore).
The National Horticulture Mission will aim at doubling horticulture production over a span of eight years. This will improve the nutritional quality of food being taken by the Indian people, give good returns to producers, and lead to expansion of food-processing and allied activities in rural areas.
The micro-irrigation project will promote use of drip irrigation and sprinklers so as to optimally utilize water, especially in uplands and rain-deficient areas.
The project on rainfed agriculture namely Enhancing Sustainability of Dryland Rainfed Farming Systems will focus on areas receiving less than 750 mm rainfall a year which covers about three-fifths of the total cropped area of the country. The strategy is to promote dryland farming practices and supplementary occupations such as dairying, fodder and tree plantation, and horticulture.
The National Mission on Bamboo Technology & Trade Development will support bamboo cultivation, marketing and processing in bamboo growing areas for enabling increased returns with environmental protection.
The National Commission on Farmers was set up through a resolution dated 10th February 2004 to examine, recommend policies, programmes and measures on various issues confronting Indian farmers. It will also 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 been re-constituted in November 2004.
A campaign has been launched this year to maximize rabi (winter) foodgrain production. The strategy is to provide credit and extension support to farmers, monitor supply of inputs and give incentives to states for maximizing agricultural production. Despite drought which has reduced the kharif foodgrain production (from about 112 MT last year to 100 MT in 2004-05), the overall foodgrain production this year is expected to exceed last years production (212 MT).
Minimum support prices have been announced for rabi crops in sowing season itself to let farmers decide the crop they want to plant. With a view to diversify agriculture from the main cereals to non-cereals viz. pulses and oilseeds, support prices for such crops have been increased substantially.
Cotton production this year is likely to reach a record level. Keeping this in view, the Government has protectively asked the Cotton Corporation of India to intervene in the market so that cotton prices do not fall below the minimum support prices.
The Government is taking steps to ensure that the flow of credit to agriculture sector is doubled in the next three years (i.e. from Rs.80, 000 crore in 2003-04 to approximately Rs.1,74,000 crore by 2006-07). In this direction, Government has announced a special package for targeted at enhancing to agricultural credit Rs.113, 825 crore in 2004-05. As per latest figures, the amount disbursed is approximately 70% more than the corresponding figure last year.
A Task Force on Application of Biotechnology in Agriculture was set up under Prof. M.S. Swaminathan. The Task Force has made many recommendations for streamlining the regulatory procedures for clearance of GM crops and has also recommended setting up a National Biotechnology Regulatory Authority as well as promoting public awareness on biotechnology-related matters. The recommendations are presently being examined by the Ministry.
The Seed Bill 2004 has been introduced in Parliament. The Bill will ensure quality of seed and take care of the interests of Indian farmers. The new Act will address farmers concerns regarding sowing, use, exchange and sale of seed and will address the issue of GM crops. It will also create a more liberalised climate for private sector investment.
Farmers are being given more representation in formulation of policies relating to agriculture and allied sector. Farmers are now represented on Central Seed Committee and Central Seed Certification Board. Farmers are also being nominated on the Boards of National Seeds Corporation and State Farmers Corporation of India. State Governments have also been asked to give greater representation of farmers in the boards of input supplying organizations.
The Government is preparing to bring a constitutional amendment to strengthen cooperatives by ensuring them the rights to election, autonomous management and independent professional audit. The amendment will incorporate in the Constitution, the three keywords for the empowerment of cooperatives-voluntary, democratic and autonomous-along with these three rights so that no state law can abrogate them. A state Cooperative Ministers Conference was held in December to seek their support, and to elicit their suggestions on the proposed amendment.
Making use of expansion of telephone network in the rural areas, the Government has set up Kisan Call Centres in 12 locations in the country. These centres are manned by agriculture graduates who provide expert advice on queries from farmers. Extension services are being expanded and new programmes on agriculture are being started on AIR and Doordarshan.
The Ministry has also launched the National Project on Organic Farming with an outlay of Rs. 57.05 crore for production, promotion and market development of organic farming in the country for the remaining period of X 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 (a) production of compost fruit and vegetables waste compost, (b) bio fertilizers and (c) hatcheries for vermiculture and (d) promotion of and extension on organic farming.
In the field of marketing and storage, two schemes (i) Construction of Rural Godowns and (ii) Development of Market Infrastructure, Grading & Standardization of Agriculture have been approved for implementation during the X Plan period.
Under the Central Sector Scheme of Construction of Rural Godowns (Grameen Bhandaran Yojana), assistance is provided for construction of godowns to provide scientific storage in rural areas to meet the requirements of the farmers for storing their farm produce. A credit linked back ended subsidy is provided @ 25% of capital cost of a project in all States and @ 33.33% of capital cost of a project in case of North East states, hilly areas and SC/ST entrepreneurs. The scheme is implemented through NABARD and NCDC. The scheme with some modifications has been approved in October 2004 with a central outlay of Rs 115 crores for creation of new storage capacity of 32 lakh tonnes and renovation capacity of 4 lakh tonnes of cooperative storage projects.
Another scheme, Development of Market Infrastructure, Grading & Standardization of Agriculture has been recently approved with a view to induce large investments from private and cooperative sectors in the development of marketing infrastructure for agricultural and allied commodities. It provides for credit linked back-ended subsidy on capital investment for setting up/strengthening of agricultural markets, market infrastructure and support services such as grading, standardization and quality certification. This scheme will be implemented through NABARD and NCDC in those states which amend their APMC Acts, wherever required, to allow direct marketing and contract farming and to permit setting up of markets in private and cooperative sectors. The central outlay of the scheme is Rs.190 crores during 2004-07.
The Government has accorded the highest priority to Agricultural Research. Plan allocation of the Department of Agriculture Research and Education has been raised from Rs. 775 crore in the previous year to Rs. 1000 crore for the current financial year 2004-05.
ICAR institutions and agricultural universities came out with about 50 improved varieties/hybrids of crops. New vaccines were evolved for control of rinderpest, equine influenza, IBD and PARVO virus in animals, and vaccines for Foot and Mouth Disease (FMD), haemorrhagic septicemia and sheep pox were improved.
A research programme on microorganisms is to start soon at a cost of Rs. 200 crore. It will help in developing varieties/species with desirable traits, soil enrichment, bioconversion of organic waste, pharmaceuticals, post harvest processing, etc.
The government has decided to establish at least one Krishi Vigyan Kendra (KVK) in each of the 578 rural districts of the country. The number of KVKs in the country now is 426 and the remaining rural districts would be covered during this Plan itself.
The National Museum on Agricultural Sciences has been set up to depict the evolution of agriculture in the sub-continent, the green revolution, and use of modern technologies in various branches of agriculture.
ICAR turned 75 in 2004. Starting with a small beginning at Pusa, New Delhi, the Council today has a countrywide network of research institutes and is the apex body to supervise and coordinate all agricultural research and education activities in the country.
Animal Husbandry, Dairying and Fisheries activities play a significant role in generating gainful employment in rural areas, particularly among the landless, small and marginal farmers and women, besides providing cheap and nutritious food to millions of people. The employment in the livestock sector is approximately 19 million. India is endowed with the largest livestock population in the world with about 16% of cattle, 57% of buffalo, 17% of goats and 5% of sheep population of the world and ranks first in respect of cattle and buffalo, second in goats, third in sheep and sixth in poultry population. According to the provisional results of the 2003 Livestock Census, the country has about 187 million cattle and 97 million buffaloes. India is the biggest producer of milk in the world.
Focus of the Government are this year has been on promotion of dairy activities in non-operation flood areas with emphasis on building up cooperative infrastructure, revitalization of sick dairy cooperative federations and creation of infrastructure in the States for improving the quality of milk and milk products. Rapid genetic upgradation of cattle and buffaloes and improvement in the delivery mechanism of breeding inputs and services to farmers as well as provision of adequate animal health services with special emphasis on creation of disease free zones are being accorded high priority.
The Ministry is considering a proposal to set up a National Fisheries Development Board in order to give a push for the development of fisheries sector. There is tremendous potential for increasing fish production particularly from inland aquaculture. Attention is being given to strengthening of infrastructure for production of fish seed, berthing and landing facilities for fishing vessels, mechanization of fishing boats and development of deep sea fishing industry to exploit the vast potential of countrys exclusive economic zone.
|