Economics & Politics

India Agriculture 2011 – Year End Report

“Observed trends in crop area and crop health indicate that the country may have another year of record production”

Production Scenario in 2011-12

  • As per the 1st advance estimates, production of Foodgrains (covering only kharif crops) during 2011-12 is estimated at an all time record level of 123.95 million (12.395 crore) tonnes mainly due to increase in production of rice in the country.
  • Kharif production of the nine oilseeds is estimated at record level of 208.86 lakh tonne which is about 0.2% higher than kharif 2010-11 due to significant increase in the production of castor seed.
  • Production of sugarcane is estimated at 3421.97 lakh tonne, significantly higher than the production of 3391.68 lakh tonne during 2010-11
  • Production of cotton is estimated at a record level of 361.02 lakh bales (of 170 kg each) as compared to the earlier record production of 334.25 lakh bales achieved during 2010-11(4th Advance estimates).

Government Schemes for agriculture

  • Rashtriya Krishi Vikas Yojana

RKVY has succeeded in its objective of acting as catalyst for pulling in more public investments for agriculture and allied sectors. Expenditure on agriculture and allied sectors in States/UTs‟ plans was only Rs. 6997 crore in 2005-06 (4.86%). This has gone up to Rs. 20478 crore (6.29%) in 2009-10, signifying an increase of 193% in a matter of four years as against increase in overall plan outlay of126%. Some States increased agriculture outlay spectacularly – Chhattisgarh by 892.22 %, Orissa by 729.62%, Maharashtra by 604.78%, Tripura by 424.70 % and Bihar by422.96%.

  • Extending Green Revolution to the Eastern States:

This programme envisages adoption of new seed varieties, farm machinery, integrated nutrient & pest management, and knowledge based interventions developed for different agro climatic zones. The programme is under implementation in Bihar, Chhattisgarh, Jharkhand, Eastern Uttar Pradesh, West Bengal & Orissa. Recently, the state of Assam has also been included under this initiative.

  • Farm Mechanization Programmes under the scheme ‘Macro Management of Agriculture’

Assistance in the form of subsidy @ 25-50% of the cost with permissible ceiling limits is made available to farmers for purchase of agricultural equipments including hand tools, bullock-drawn/power-driven implements, planting, reaping, harvesting and threshing equipments, tractors, power-tillers and other specialized agricultural machines under the centrally sponsored scheme of Macro Management of Agriculture.
The feedback from the State Governments indicates that during the year 2010-11 (up to 31st January, 2011), 3572 tractors, 700 power tillers, 31352 hand tools, 5417 bullock-drawn implements, 3426 tractor-driven implements, 1456 self-propelled/power-driven equipments, 1563 plant protection equipments, 1761 irrigation equipments and 2925 gender-friendly equipments have been supplied to the farmers.

  • Pulses and Oilseeds villages:

Another initiative under RKVY has been announced for increasing production of oil seeds and pulses in 60000 “Pulses and Oilseeds villages” in rainfed areas to provide an integrated intervention of water harvesting, watershed management and soil health, to enhance the productivity of the dry land farming areas.

New Schemes / Initiatives

  • National Seed Mission:

In order to boost overall quality seed production in the country to meet objectives of making available quality seeds for ensuring food security, DAC has drafted a  “National Mission on Seeds” with the proposed outlay of Rs. 3773.40 crores for a period of 5 years starting from 2011-12. Planning Commission has granted “in principle” approval. The Mission will comprise some of the components of the existing scheme and will also include new components aimed at promoting production of Seeds, technological upgradation of seed infrastructure, acquisition of new varietal portfolio of public sector seed companies, etc.

  • Minimum Support Price:

In order to achieve a balance between the production of cereals and non-cereals, the Government offers Minimum Support Price (MSP) to farmers so that they get remunerative prices and are not put to loss because of higher production of foodgrains. The MSPs of kharif crops of 2011-12 were announced. The MSPs of paddy have been raised by Rs.80 per quintal, while that coarse cereal by Rs. 100 per quintal. The MSP of arhar (tur) moong and urad have been increased by Rs.200, Rs. 330 and Rs. 400 per quintal, respectively. The MSPs for groundnut-in-shell and sunflower seed have been increased by Rs.400 and 450 per quintal, respectively. The MSPs of soyabean and sesamum have been increased by Rs. 250 per quintal. After last couple of retention in the MSP of cotton this year it has increased by Rs 300. The MSP for wheat has been fixed at Rs.1120 per quintal from Rs. 1100 per quintal during the previous year. The MSPs for gram and safflower have been increased by Rs.340 and Rs. 120 per quintal, respectively.

Other Policy Initiatives and Achievements

  • During 2011-12, about 5.00 lakh hectares of degraded lands has been targeted for development, against which an area of 3.25 lakh hectares has been developed so far under various watershed development programmes.
  • Export of cotton has been put under OGL effective from 1.10.2011.
  • In view of comfortable stock position of wheat and rice, the Ministry recommended lifting of ban on export of these commodities. Now export of wheat, prohibited since October 2007, has been allowed under OGL since September 2011.
  • Export of onion is being monitored in terms of domestic availability and prices. Presently, export of onion is allowed with Minimum Export Price of USD 250 per MT.
  • FDI policy for agriculture sector was amended to allow 100% FDI under automatic route for “development of seed”.

Allocation and Release of Funds

  • During 2011, Rs. 400 crore was allocated under Rashtriya Krishi Vikas Yojana for continuation of Green Revolution in non-NFSM districts of Eastern India.
  • Government has announced an allocation of Rs. 300.00 crore, in the Union Budget of 2011-12, for promotion of nutri cereals under “Initiatives for Nutritional Security through Intensive Millet Promotion (INSIMP)” as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY).
  • Allocation under RKVY for the current year is Rs 7810.87 crore, of which Rs 5221.11 crore has already been released upto 25.12.2011.
  • Under Rainfed Area Development Programme (RADP) an amount of Rs.132.50 crore has been released and 0.66 lakh hectare area has been covered so far.
  • The Ministry has already released an amount of Rs.248.79 crore to the States and agencies against the allocation of Rs.300.00 crore during 2011-12, under Rashtriya Krishi Vikas Yojana (RKVY) for bringing 60,000 hectares, under oil palm plantations. A strategy indicating State specific targets for area expansion, interventions, pattern of assistance, research and development components, institutional linkages, monitoring, initiatives for creating processing facilities in needy States is being adopted.
  • An amount of Rs.1936.53 crore (till 30.11.2011) has, so far, been released as grants-in-aid under different components of the scheme, development and strengthening of infrastructure facilities for production and distribution of quality seeds‟.

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