SHARE OF AGRI INDUSTRY

(NATIONAL INCOME)
 INDIA IN AGRICULTURE
SECTOR TILL 11th PLAN
FIVE YEAR EXP TARGET EXP TARGET ACTUAL EXP ACTUAL EXP
PLANS TOTAL PERCENT TOTAL OUTLAY PERCENT
OUTLAY
1st (APRIL 1,1951 to
MARCH 31,1956)
2nd (APRIL 1,1956 to
MARCH 31,1961)
3rd (APRIL 1,1961 to
MARCH 31,1966)
Rs 1068 cr 14% Rs 1089 cr 12.7%
4th (APRIL 1,1969 to
MARCH 31,1974)
Rs 2728 cr 17.2% Rs 2320 cr 19.7 %

5th (APRIL 1,1974 to

MARCH 31,1979)
Rs 4865 cr 12.4% _ _
6th (APRIL 1,1980 to Rs 5,665 cr 5.9 % Rs 6,624 cr 6.1%
MARCH 31,1985)
7th (APRIL 1,1985 to
MARCH 31,1990)
Rs 10,524cr 5.8 % Rs 12,793 cr 5.8%
8th (APRIL 1,1992 to
MARCH 31,1997)
Rs 22,467 cr 5.2% _ _
9th (APRIL 1,1997 to Rs 37,546 cr 4.4 % _ _
MARCH 31, 2002)
10th (APRIL 1,2002 to Rs 58,933 cr 3.86 % _ _
MARCH 31,2007)
 IMPORTANCE OF AGRICULTURE
IN INDIA
• IN NATIONAL INCOME.

• IN EMPLOYMENT.

• IN INDUSTRIAL DEVELOPMENT.

• IN INTERNATIONAL TRADE.
 IN NATIONAL INCOME
• Share of agriculture in GDP was 55.4% in
1950-51, 52% in 1960-61 and it comes down
to 18.5% in 2006-07.

• In capital formation in GDP reduced from 2.2%

to 1.9% during 1999 to 2005-06.
 IN EMPLOYMENT
• It generate employment for 65 to 70% of total
population.

• This sector provides employment to 58.4% of

country’s work force.
 IN INDUSTRIAL DEVELOPMENT

Various industries used raw material from

agriculture sector for example; cotton
industries, jute, textiles, sugar, vanaspati
industries etc;
 IN INTERNATIONAL TRADE
• Agriculture sector constitute 14.7% of total
export earning.

• Goods made with the raw material of

agriculture sector also contributes about 20%
in Indian export.

• Total export of agriculture goods is 38%.

 MINIMUM SUPPORT PRICE FOR
AGRICULTURE PRODUCTS
MSP:- It is a price at which government is ready
to purchase the crop from farmers directly if
crop price becomes lower to MSP . Main
objective of announcing MSP;
1.) To prevent fall in prices in the situation of
over production.
2.)To protect the interest of farmers by ensuring
them a minimum price for their crops in the
situation of price fall in the market.
 Food Grains Procurement and Stocks
• Function of food grains procurement and stocks
1.)provide support prices to the farmers
2.) building up public stocks of food grains.
Foods stock are maintained by central government for three
purposes.
a.) for meeting the prescribed minimum buffer stocks norms for
food security.
b.) for monthly release of food grains for supply through
PDS( Public Distribution System).
c.) for market intervention to augment supply so as to help
moderate the open market prices.
 STEPS TAKEN BY GOVERNMENT TO
ENHANCE THE AGRI-GROWTH
• Minimum support price of agriculture products .
• Food grains procurement and stocks.
• Enhance the growth of horticulture crops.
• Plantation sector.
• Increase the production of commercial crops.
• Proper use of land and its reformation.
• Agriculture holding.
• Insurance scheme.
• Seed sector reforms.
• Seed crop insurance.
• Proper use of fertilizers.
• Irrigation scheme.
• More financial support for farmer
 Growth In Horticulture Sector
• Horticulture crops include ; fruits , vegetables, root tuber,
ornamental aromatic plant, medicinal plant and spices ,
coconut, areca nut, cashew, coca.
• India is second largest producer of both fruits and vegetables,
onion in the world.
• India secure first place in production of cauliflower.
• Third place for production in cabbage.
• National Horticulture Mission (NHM) established in order to
doubling horticulture production by 2012. In this plan 18
states and 2 union territories and 10 national level agencies
have been approved during 2006-07, for this an amount of
Rs.560.29 cr has been released up to December 11, 2006.
 PLANTATION SECTOR
• TEA:- a.) constitute 27% of total production in
world and 13% of world trade.
• COFFEE:- a.) India contributes 4% of the world
production.
• RUBBER:- a.) India ranks 3rd in production and
4th in consumption of natural rubber in the
world. Rubber plantation are spread over 5.7
lakh hectares in 16 states.
 TEA PRODUCTION ,CONSUMPTION
AND TRADE (QTY. : MILIONS Kgs; Value's: crore)
YEAR PRODUCTI EXPORT EXPORT IMPORT IMPORT DOMESTI-
-ON QTY. QTY. VALUE QTY. VALUE C
CONSUM-
PTION

2000-01 848.4 203.6 1889.8 15.2 95.5 653

2003-04 850.5 183.1 1637.0 11.1 67.0 714

2004-05 830.7 205.8 1924.7 32.5 145.0 735

2005-06 930.9 181.1 1631.6 16.4 99.3 757

2006-07 722.5 114.3 1048.5 13.75 70.84 N.A

 INCREASE PRODUCTION
COMMERCIAL CROPS
1.) Oilseeds crops :- groundnut, mustard,
sesasum,
rapseed,linseed,castor,sunflower,nigerseed
and soya bean.
2.)Sugar crops :- sugarcane and beat
3.) Fiber crops :- jute, Mesta, sunhemp and
cotton.
4.)Narcotic crop :- Tobacco.
5.)Beverage crops :- tea, coffee.
 land reformation
• Land reform programmes in India include:-
1.) Elimination of intermediaries.
2.) Tenancy Reform.
3.) Determination of ceiling of holding per family
and to distribute surplus land among landless
people.
4.) Consolidation of holding.
 In order to check the land
reformation
government has made a new
agency for its reformation and its
up gradation. JAI PRAKASH
MISSION FOR LAND REFORMS
AND WASTELAND DEVELOPMENT
It will work under Ministry of rural
development.
 In order to check the land
reformation
government has made a new
agency for its reformation and its
up gradation. JAI PRAKASH
MISSION FOR LAND REFORMS
AND WASTELAND DEVELOPMENT
It will work under Ministry of rural
development.
 INSURANCE SCHEME
• General Insurance Corporation of India (GIC)
introduce a scheme NAIS( National Agriculture
Insurance Scheme) from Rabi 1999-2000
season.
• Krishi Shramik Suraksha Yojana.
• Farm Income Insurance Scheme.
• Varsa Bima ( rainfall insurance scheme).
 SEED SECTOR REFORM
PRODUCTION OF BREEDER AND FOUNDATION SEEDS AND DISTRIBUTION OF CERRTIFIED SEEDS

YEAR Production of Production of Distribution of

Breeder Seeds Foundation Seed Certified/Quality
( quintals) (lakh quintals) seeds (lakh quintal)
2003-04 61,826 6.5 108.59
2004-05 66,460 6.9 113.10
2005-06 65,880 7.4 126.74
2006-07 69,980 8.0 149.63
 Steps taken for seed reform
• Establishment of National Seeds Board (NSB).
• Compulsory registration of any seed for purpose of sowing or
planting to be granted by NSB.
• Registration to be granted for new varieties on the basis of
multinational trials over a minimum period of 3 seasons.
• The NSB will accredit from ICAR , Centers, States university to
conduct value for cultivation.
• Registration of seed producers and processors.
• Import and export of seeds will be regulated under this Act.
• Import for sale of seeds will be permitted only of registered
varieties.
• Import of seed of limited quantity of unregistered variety is to be
permitted for research and trial.
 SEED CROP INSURANCE
• Failure of seed crop either in full or inpart due
to natural risk.

• Loss in expected raw seed yield.

• Loss of seed crop after harvest.

• At seed certification stage.