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The Economic Survey 2004-05 says that erratic monsoon rainfall in 2004 caused the substantial fall in kharIf food grains productions. As per advance estimates the food grain production in the current year is expected to be 206.4 million tones in 2004-05 as against 212 million tones last year. The overall growth rate for agriculture and allied sectors has been projected at 1.1. % for the current year. The good post-monsoon rains have improved the prospects of Rabi food grains and help off-set the loss in Kharif food grains production party.
Kharif production was at the level of 102.9 million tonne, down by 9 million tonne. The estimates project Rabi food grain production at 103.5 million tonne, up by 3.5 million tones. The production of oilseeds has been estimated at 24.8 million tonne which is marginally less than previous years’ production of 25.1 million tonne. The production of cotton is expected to grow sharply to 17.1 million tones against 13.8 million tonne in 2003-04. The sugarcane production however continued to decline for the third year in succession mainly because deficient rainfall in Maharashtra .
In the Plantation sector, the tea production was 623.1 million Kgs in first 7 months of 2004-05 and the exports stood at 103.8 million Kgs Coffee production was 2.75 lakh tonne in 2003-04 while its export reached 2.32 lakh tonne. The natural rubber production is expected to reach 762 thousand tonne, up from 711 thousand and the consumption would go up to 760 thousand tones from 719 thousand tonne. To give a boost to Plantation sector Government took measures for enhancing liquidity, fiscal relief, encouraging IT etc.
An important aspect of the Agriculture economy has been increased in per capita availability of milk to 232 Gms./day in 2004-05. To facilitate sustainable deep sea fishing, a comprehensive marine policy was launched in November 2004. The fish production was 3 million tonne from marine and 3.4 million tonne from inland waters sources.
Referring to the UN General Assembly’s declaration of 2004 as International Year of Rice, the Survey observes that in Asia alone more than 200 million people obtain 60 to 70 % calories from rice. It calls for efficient and productive rice based systems terming them essential to economic development and improved life particularly in rural areas.
Referring to Agricultural inputs like irrigation, the Survey says that the fast track programmes for providing central assistance have covered major/medium and 3810 minor irrigation upto 2003-04. Central Loan Assistance (CLA) of Rupees 15,398 crore was released upto December 2004 and irrigation potential of 2.7 million hectares was created under the programme through major/medium projects and 80 thousand hectares through minor irrigation schemes.
There has been a steady increase in institutional credit to agriculture. In the period upto December 2004 of this fiscal institutional credit by the banks has been of the order of Rs.85,686 crore, almost same as in the previous whole year when it was Rs.86,981 crore. Steps are being taken to further increase the credit flow to agriculture. ‘The Kisan Credit Card Scheme’ (KCC) has also witnessed stepped up credit facility to farmers with more than 435 lakh cards issued up to September 2004 and the amount sanctioned reaching 1,11,459 crore .
The availability of assured quality seeds has gone up considerably. It is estimated that the production of breeder seed would be 51,000 quintals, foundation seeds 7 lakh quintals and distribution of certified quality seeds, 127.4 lakh quintals in 2004-05. This was 50,043 quintals, 6.5 lakh quintals and 100 lakh quintals respectively in 2003-04. Consumption of all fertilizers has been 92.2 lakh tones during April-September 2004 against 168 lakh tones in entire previous year. The domestic production of fertilizers is estimated to be higher at 109.1 lakh tones of nitrogen, 41.4 lakh tones of phosphate in 2004-05 which is higher than 1063 lakh tonne and 36.3 lakh tones respectively in 2003-04.
The Survey summarizes that Indian agriculture faces both opportunities and challenges with liberalization of domestic and global market. It stresses the need to develop a new strategy for agriculture sector and the imperative of moving away from subsidy-based regime and to a productive and internationally competitive agriculture structure. The Survey underlines the need for agriculture growth which is important for achieving higher economic growth and lifting large number of household out of poverty and unemployment. The survey calls for special emphasizes to be given to micro finance, describing it a valuable tool for fighting poverty and unemployment. It calls for rectifying the gaps in credit for agriculture like inadequate provision for small and marginal farmers, paucity of medium and long term landing and limited deposit mobilization.
The Survey recommends establishment of sound regulatory frame work for the development of efficient commodity futures markets. It also suggests seeking inclusion of provisions of WTO agreement on agriculture which will provide sufficient protection to Indian agriculture as more than 65% of population derives their livelihood from agricultural activities.
RCJ/KC (Agriculture 1- ES 04-05)
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