Agriculture : A Game Changer

Indias IT and IT enabled service and related sectors continue to provide

the right fillip for the economy. At the same time, from a position of backbone of
Indian Economy ,the agriculture sectors share to the GDP continues to be on the
declining trend .Despite noteworthy scientific advances and irrigation facilities,
Indian agriculture continues to be monsoon dependent. In a country of Indias size
and population any initiative to relaunch the agrarian sector will be a great boon to
the farming community and people at large. The Ministry of agriculture is in the
process of revamping the sector with a number of innovative schemes .Reforms in
agricultural marketing, soil health card , direct benefit transfer in agriculture, PM
Krishi sichai yojana etc are some of the recent initiatives that will rejuvenate the
agrarian sector of India and will have a far reaching positive impact on the vital
sector of the economy.

Quantum leaps in the agriculture sector :A temporal review

The first phase called the green revolution of transformation of Indian
agriculture was mainly driven by the need to achieve self sufficiency in food grains
as India was importing a large quantity of cereals for meeting domestic shortages.
The advent of new high yielding varieties brought green revolution in late 1960s
,which in combination with expansion in area under cultivation and usage of
chemical fertilizer increased the output of cereals mainly wheat and rice ,followed
by other coarse cereals such as maize to a certain extent chiefly in Punjab ,
Haryana and western Uttar Pradesh.Special efforts were then made to spread new
technology into those regions which had remained outside the fold of technological
revolution. There was a respectable growth in gross irrigated area the huge
increase in the usage of fertilizer .There was an increase in the road network and
electric generation and investment in the agricultural sector also expanded. But the
supplies of all major commodities like cereals, oilseeds and sugar cane did not show
much increase.
The second phase of transformation witnessed a play of a combination of
expansion of the green revolution into new crops and areas and introduction of the
white revolution also known as Operation Flood which laid the foundations for
consolidation of gains made in first phase and led to enormous growth of milk
production in the country. Agricultural production has been rising at the rate around
2% per annum over the past two to three decade , poultry production has been
rising at the rate of around 8% per annum. India is the second largest egg producer

and third largest broiler chicken producer in the world with estimates of 65,000
million eggs and 3 million tonnes of broiler meat per year.

Another important diversification of agriculture can be manifested in the

growth of horticulture The area under horticulture farming increased from 12.8
million hectare in the 91-92 to 23.41 million hectare during 14-15 due to the
National Horticulture Mission
which resulted in 194%
rise in horticulture.
Implementation of national horticulture mission paved the way for adoption of
cluster based approach for the development of horticulture crops through linking
the creation of infrastructure for post harvest management and marketing.
A major benefit of the agricultural diversification can be witnessed in the
manifold rise in the agricultural exports .This can be manifested in the form of the
pole position of India in the rice export segment ,The contribution of fruit ,
vegetable , poultry products have seen significant growth trajectory in the recent
years.

Agricultural Marketing :
Agricultural marketing is mainly the buying and selling of agricultural
products. Today's agricultural marketing has to undergo a series of exchanges or
transfers from one person to another before it reaches the consumer. The products
may be sold directly in the market or it may be stored locally for the time being.
Most of the agricultural products in India are sold by farmers in the private sector to
moneylenders (to whom the farmer may be indebted) or to village traders. Products
are sold in various ways. For example, it might be sold at a weekly village market in
the farmer's village or in a neighboring village. If these outlets are not available,
then produce might be sold at irregularly held markets in a nearby village or town,
or in the mandi. The operations in the mandi have been regulated under the
Agriculture Produce Marketing Committee Act which is restrictive as buyers
cannot buy directly from farmers .Successive governments have made
attempts to get out of this labyrinth by urging states to amend the APMC Act or to
at least de list some of the items like fruits and vegetables so that farmers get their
due and consumers get the products at reasonable prices. But fear of losing
revenue earned ,as mandi fees and taxes has made many states to turn
deaf ears.
To remove stagnancy and bring transparency in the system with digitization
as the means ,the present Government has taken a major step to reform this
marketing system. It has decided to set up a National Agricultural Market
through The Agri tech Infrastructure fund with initial budget of Rs 200
crores . Only states that amend APMC will be able to participate in this reform
measure which will be implemented by Small Farmers Agribusiness

Consortium.

One of the major drawbacks of the APMC act is that the trader has to
take multiple licenses for different mandis in spite of being in a single
state. With the initiation of the electronic
National Agriculture Market ,the
government has signaled its intention to move away from the exploitative Market
structure .NAM will be a pan Indian electronic trading portal which seeks to
network the Existing APMC mandis and other markets to create a unified
national market.It is Infact a VIRTUAL market where price discovery and
bids will be conducted online ,but it has a physical mandi at the back end. To
participate on the online portal, each state will have to set up its own e marketing
portal .The prerequisites to participate in NAM
Amendment of APMC act

APMC should provide licenses to anyone in India including private players to trade through NAMin local mandis

Single license for single state that covers all mandis and single lpoint levy of transaction fee

With the introduction of NAM ,the farmer will have a choice to bring his produce to
the local mandi or become a bigger player by seeking online buyers operating in
other markets. In such transaction , the quality of the produce may become an issue
.But according to the new system ,the warehouse which will store the
produce till it is transported ,will upload warehouse depository receipt
about the certified quality tested in the warehouse laboratory. Another
important aspect is capacity building of the agents which will help them in
becoming active and informed players in this digital system.NAM is envisaged as a
starting point for far reaching reforms in the agriculture sector. It not only promises
transparency but also has an inbuilt price discovery mechanism which allows a
farmer to get better value of his produce. The registered buyer b will see online
quotation of prices and quote his own price. The highest bid will be sent through
SMS to the farmer and if the farmer agrees he will produce his sale the next day.
Gradually it is expected that farmers will get remunerative price for their produce
and will not have to wait for payment. Thus The National Agricultural Market is a
promising initiative but it will have to be seen how it pans out and what role the
agents/middle men come to occupy.

Agricultural Insurance and evolution of Pradhan Mantri Fasal

Bima Yojana :
India agribusiness is synonymous with risk and uncertainty because
agriculture in India depends upon the natural factors that is adverse weather
conditions flood, drought etc. Uncertainty of nature leads the farmers to distress
.Low productivity ,less income, less income and high loans taken for agriculture are
forcing some of our farmers to lead stressful lives or even commit suicide.
Therefore to cope up with these agro problems a risk management tool called
Agricultural Insurance was launched for the farmers. The objective is to provide
insurance coverage and financial support to the farmers in the event of
failure of any of the notified crop as a result of natural calamities ,pests
and diseases.
The government had launched many
which had many drawbacks namely

namely NAIS , MNAIS, WBCIS schemes

There was an alarming number of farmer suicides which is a burning issue , reports
of over 300 deaths have led to the beginning of a newer scheme with better
features to complement the farming community at large,the Pradhan mantri
Fasal Bima yojana was launched by the incumbent government, that will not only
provide insurance to all farmers from crop damage, but also become a financial
support for them. Under this insurance plan, the premium rate will be 2% of the
actual sum assured amount for Kharif crops and 1.5% for the Rabi crops. The main
motto of this new scheme is to provide a more efficient insurance support to the
farmers of the country .Government has decided to provide low premium insurance
cover to the farmers so that they can sustain even if the crop is damaged. There
will be uniform premium of 2 % percent for all kharif crops as against 2.5 % - 3 %
earlier. The balance premium will be paid by the government to provide the full
insured amount against the crop loss on account of natural calamities. Another key
feature that the insurance scheme will provide localized risk coverage and has
added a number of calamities like hailstorm etc.
On a comparative analysis it can be seen that how it is and improved version of its
predecessors

NAIS
No

MNAIS

Feature

PM Crop
Insurance

[1999]

[2010]

Scheme

Lower than even

NAIS
1

Premium rate

Low

High

(Govt to
contribute 5
times that of
farmer)

One Season One Premium

Yes

No

Yes

Insurance Amount cover

Full

Capped

Full

On Account Payment

No

Yes

Yes

Localised Risk coverage

No

Post Harvest Losses coverage

Prevented Sowing coverage

Hail storm
Land slide

Hail storm
Land slide
Inundation

Coastal areas -

All India for

for cyclonic

cyclonic +

rain

unseasonal rain

No

Yes

Yes

No

Intended

Mandatory

No

Use of Technology
8

(for

quicker

settlement

of

claims)
Yes (target to
9

Awareness

No

No

double coverage
to 50%)

Challenges

Flawed land titles and poor land records limit farmers access to insurance
cover.

It is unclear as to how the program will be monitored, as the scheme is set to

be implemented by the same set of agencies and personnel who operated
the earlier ones.

Close supervision is imperative to eliminate malpractices at different levels,

which had contributed to the failure of earlier schemes.

Scientic Developments and Agriculture:

Due to increasing population, decreasing landholding, increased stress on land ,
crops due to weather vagarities, scientific development has a crucial role to play to
address all these issues .However smallholder farmers who are responsible for 80
percent of the food production have yet to see the gains as they have lack of access
to the better methods of farming. So it is imperative for the government to broadly
use scientific technology which can result in the following:
Improved livelihood of farmers and their families by producing more and higher quality crops for a growing population

Enhanced nutritional values and food safety to improve the health and wellbeing of people around the world

Agriculture sustainability through reduced resource use

Scientific knowledge can help the agriculture in the following ways namely:

PCM lrao bnp it l Peb ro e t e dhc it n og ln o a g n y d f ao g r ni c u r let ua rs ai nl gb ipo rt oe dc uh cn to i vl o i tg y

To Increase the scientific knowledge and temper among the farming communities
the Government has launched the Mera Gaon Mera Gaurav. The scheme
envisages scientists to select villages as per their convenience and remain in
touch with the farmers to provide them information and technical

knowledge. The scientists are expected to perform these function through Krishi
Vigyan Kendra and Agriculture Technology Management Agency. Rural
economy is the key for bringing the much needed transformation that India needs
at this juncture today. Primarily the agriculture has to be made viable and sincere
efforts should be made to substantially increase such exports.

Horticulture : The future of diversification

Horticulture can also be defined as the branch of agriculture concerned with
intensively cultivated plants directly used by man for food, for medicinal purposes
or for aesthetic purposes. In Indian context it is divided into the following parts:

Fr
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A ro m
a t ic
p la n t
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v e g
e ta
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F l
o
w
e r
s

The Government has identified horticulture crops as a means of diversification for

making agriculture more portable by efficient soil management through Soil health
Card Presently horticulture has established its credibility in improving income
through increased productivity ,generating employment and and in enhancing
exports .Resultantly horticulture has moved from rural confines to becoming a
commercial venture. After China India Ranks among the largest producers and
leading exporters of flowers fruits and vegetables and has immense scope of
improvement in the forthcoming years. It contributes more than 34% GDP of the
agriculture ,which calls for technology led progress .Over the last decade ,the area
under horticulture crops grew by about 2.7 % per annum and annual production
increased by 7%. Though India is one of the highest producer of horticulture
products, its productivity is way below the global averages.

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Vegetables improves the economy of a country as these are very good source
of income and employment .The contribution of vegetables remains around 60% in
horticulture crop production. The Government has launched a new scheme on
Vegetable Initiative for Urban Clusters (VIUC) during 2011-12 as a subscheme of Rashtriya Krishi Vikas Yojana (RKVY) for addressing all
concerns related to demand and supply side of the vegetable sector,
enhancing vegetable production & productivity and encouraging
establishment of an efficient supply chain in one major urban centre in
each State which is either the State capital or any other city having a
population of one million or above.
The floral industry today has grown up to much larger proportions and offers a
wide scope for growth and profits .In India ,floriculture industry comprises flower
trade ,production of nursery plants and potted plants ,seed and bulb production.
Enormous genetic diversity ,varied agro climatic conditions versatile human
resource offer India a unique scope for judicious employment of existing resources
and exploration of avenues yet untouched. The domestic industry is growing at
annual 7-8 % per annum. The area is concentrated in Tamil Nadu, Andhra
Pradesh ,Maharashtra, Kerala, Himachal Pradesh/The effective strategies to promote
floriculture

National Horticulture Board was set up in 1984 to improve integrated

development of Horticulture industry and to help in coordinating ,sustaining the
production and processing of fruits and vegetables. With effect from 2014- 15 ,The
Mission for Integrated Development Of
Horticulture has been
operationalized by bringing all ongoing schemes under a single umbrella .Use of
Micro irrigation ,Integrated pest management and Infrastructure for post
harvest management and marketing are the focus.

The post harvest handling and food processing sectors are increasingly Important
for the following reasons
It acts as a means of higher income to farmer producer
Cold storage facilities serve as a link between the agriculture ,industry and
consumers and
It act as a means for enhancing the shelf life and preserving the food quality.
It helps in reducing agricultural wastage thus catering to the need of changed
dietary habits.

It has been reported that post harvest losses are at Rs 42000 crores per annum
valued at whole sale prices, Fruits and
vegetables reported highest losses at
18%..Recognizing the importance of development of cold chains in India, the
government has undertaken various steps to promote such facilities through the
involvement of various agencies like National Horticulture Board, APEDA
,Department of Agriculture and cooperation and National Cooperative
Development Corporation.
The following are the steps that have been taken:

The cold storage industry of the country has to expand in times to come to cater to
the changes in crop diversification food habits and to transfer higher values to the
farming community.

Irrigation Scenario In India :

As Agriculture is important for the Indian Economy, similarly Irrigation is equally
crucial for complementing the Agriculture sector .The Indian water scenario is fast
changing because of increasing population, rising demand for irrigating agricultural
land, rapid urbanization and industrialization ,electricity generation ,impact of
global warming and erratic rainfall. As against the ultimate irrigation potential of
140 million hectares estimated in 1997,currently 45 % of countrys net sown area is
irrigated leaving 55 % at the mercy of rains. The following are the types of
irrigation and their respective contribution towards the Indian Agriculture sector.

From time to time , government introduced several water resources development to

increase cropped area under irrigation and significantly enhance
water use
efficiency

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A new kind of Irrigation was established to increase the efficiency called the
Micro irrigation. They can be classified into two types called drip and sprinkler
irrigation. Drip is the most suitable for wide spaced horticulture and other crops
.Water saving due to Drip is between 12-84% depending on the type of crop, Micro
irrigation enhances input use efficiency and crop productivity ,reduces
energy consumption. The 12th five year plan targets bringing about 10.1 MHA
under micro irrigation .
While the government has invested significant resources to develop irrigation
facilities following are the issues that have substantially constrained the harnessing
the full utilization of water:

D e la y e d

Im p le m e n t a t io n

T im e a n d

C o s t O v e r r u n s ( A v e r a g e e s c a la t io n

w a s 2 0 0 %

fo r m a jo r p r o je c t s s t a r t in g

fro m

U n d e r U t iliz a t io n

G r o u n d w a t e r D e p le t io n ( o n ly 3 0

o f th e g ro u n d

w a t e r is le ft )

There has been a manifested lack of attention to water legislation, water

conservation, water use efficiency etc .All Incomplete projects need to be completed
by drawing a suitable road map indicating specifically the role of officials
,departments and ministry concerned.
It is thought that the sustained efforts by the state and central government would
bear fruit and bring smile on the faces of millions of farmers who toil hard to feed
the nation.

1 9 8 5 )