AGRICULTURE AND ALLIED ACTIVITIES

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1 Economic Survey of Karnataka AGRICULTURE AND ALLIED ACTIVITIES 7 7. AGRICULTURE Vision: Ensure food security and make agriculture a sustainable and economically viable vocation with emphasis on small and marginal farmers. Objectives : 1. To achieve the targeted growth rate of 4.5% in the agriculture sector by enhancing agriculture production and productivity. 2. To evolve and implement various State and Central schemes for improving the income level and livelihood of small, marginal and women farmers. 3. To devise and implement specific schemes for drought prone areas. 4. T o o f f e r q u a l i t y e d u c a t i o n a l opportunities, promote research, generate appropriate technologies to address the relevant challenges facing agriculture and allied areas. 5. To improve human resource including all stakeholders to promote sustainable agriculture development. 6. To effectively conserve, develop and utilize natural resources in a sustainable manner. 7. To ensure proper disaster and risk management in agriculture including climate resilient agriculture. RFD Results: Department of Agriculture has secured the total composite score of and stands between fair and good category RFD targets have been uploaded on July 3rd 2014 in RFMS software. 7.1 BUDGETS FOR AGRICULTURE: During , an amount of Rs crores has been earmarked for Agriculture Department, out of which Rs crores has been provided under plan and Rs crores under Non-Plan schemes. Emphasis has been given for comprehensive Development of Agriculture through Krishi Bhagya, Bhoochetana, Supply of Quality seeds & other inputs, Organic farming, Custom Hiring Centres, Farm Mechanization and Micro-irrigation programmes. 7.2 MONSOON IN 2014 Pre-monsoon Rainfall The State has received normal premonsoon rainfall during April and May. Actual average rainfall during April 2014 was 33.6 mm as against the normal of 34.8mm. During May the rainfall was mm. as against the normal of 83.2 mm. Southwest monsoon Southwest monsoon commenced in some parts of Coastal and South Interior Karnataka on 10th June, further spread to some more parts of SIK on 14th June, covered most parts of SIK and some parts of North Interior Karnataka on 15th June and by 20th June covered all parts of the State. Rainfall during June was deficit by 41%. During July rainfall was normal. Southwest monsoon turned to be active over Interior Karnataka during 19th - 31st August. On

2 180 Economic Survey of Karnataka nd it turned to be vigorous over North Interior Karnataka and remained active up to 27th August All the Northern districts of the State i.e. Bidar, Gulbarga, Yadgir, Raichur, Koppal, Bellary, Belgaum, Bijapur, Bagalkote, Dharwad, Gadag and Haveri received excess rainfall. Crops in an area of about 1.56 lakh hectares were affected by excess rainfall. Rainfall during August was +41% against the normal. During September rainfall was deficit in major parts of North Interior Karnataka (except Haveri district), Kolar and Chikkaballapur districts of South Interior Karnataka. Cummulative rainfall from 1st June to 30th September 2014 was mm as against a normal of mm (-1%). Cumulative Rainfall was excess in 5 districts, normal in 21 districts and deficit in the rest 4 districts i.e. Kolar, Chikkaballapur, Gulbarga & Bidar). The deficit rainfall / dry spell during 2nd fortnight of June, 1st week of July, August and September in major parts of North and South Interior districts affected rain fed crops in an area of lakh hectares Major crops affected were Red gram, Soyabean, Maize, Green gram, Groundnut, Ragi, Bajra, Sunflower, Cotton and Sugarcane. South-West Monsoon withdrew from some parts of North Interior Karnataka on 17th October and from remaining parts of Karnataka on 18th October Simultaneously, Northeast monsoon rains commenced over South Interior Karnataka. Northeast monsoon: During October, actual average rainfall was mm as against a normal of 136 mm, and during November actual average rainfall was mm as against a normal of mm (deficit by 44%). During December rainfall was excess/normal in Coastal, Malnad, Northern and some parts of Southern districts. Actual rainfall was 16.5 mm as against a normal of 10.2 mm (+62%). Deficit/scanty rainfall during October and November in northern districts hampered normal area coverage of Rabi crops. District-wise and Month-wise rainfall received during pre-monsoon, southwest monsoon and northeast monsoon during the year 2014 is given in Appendix 7.1 (a). 7.3 AGRICULTURAL PRODUCTION - PERFORMANCE AND PROSPECTS During Kharif season, area coverage under cereals, pulses and sugarcane was near normal, significant decline was observed in oilseeds; but area coverage under cotton and soyabean was all time high due to crop diversification in northern districts. Area coverage under Rabi crops was less on account of poor rains in northeast monsoon period in majority of the districts. A Satisfactory storage/water level in majority of the irrigation reservoirs is expected to give scope for normal summer production programme. Primary estimates based on the progress in area coverage under various kharif and rabi crops, likely loss in yield on account of long dry spell / excess rainfall in some parts indicate production of lakh tonnes Cereals and lakh tonnes of Pulses against the target of and lakh tonnes respectively. Oilseeds production is anticipated to be lakh tonnes against the target of lakh tonnes. Production of cotton is likely to be lakh bales against the target of lakh bales on account of higher area coverage. The short fall in production of Pulses and Oilseeds can be attributed to crop diversification, decline in area coverage and stunted growth of rainfed crops in major parts of South and north Interior Karnataka. Area and Production of Major crops are given in Table 7.1. The projected production of principal crops in Karnataka for Kharif, Rabi and Summer crops of are given in Appendix 7.2.

3 Economic Survey of Karnataka Table 7.1 Area and Production of Major Crops in the State (Area in lakh hectares, Production in lakh tonnes) Crop / Group * ** Average growth over previous year (%) Area Prod. Area Prod. Area Prod. Cereals Pulses Total food grains Oilseeds Cotton # Sugarcane Tobacco # Lakh bales of 170 Kg. lint, ** Final Estimates of DE&S, * Revised Advance Estimates of Agriculture Dept. Table 7.2 and Appendix 7.3 provide details of area coverage under kharif, Rabi and summer crops during the current and previous year. Index number of area, production and yield of agricultural commodities over the years are given in Appendix 7.4. Area under principal crops in Karnataka over the years is given in Appendix 7.5. Details of production of principal crops in Karnataka over the years are given in Appendix 7.6. Average yield of selected crops in India and Karnataka are given in Appendix 7.7. Area irrigated by various sources in the State is shown in Appendix 7.8. Table 7.2: Area Coverage: Kharif, Rabi and Summer (Lakh hectares) Crop/ Groups Normal Kharif Rabi * Summer * Normal Normal Cereals Pulses Total food grains Oilseeds Cotton Sugarcane Tobacco Aggregate Source: Agriculture Department. *Anticipated

4 182 Economic Survey of Karnataka LAND UTILIZATION AND OPERATIONAL HOLDINGS Land Utilization: As per the land utilization statistics for , out of the total lakh hectares geographical area of the State, the net cropped area was lakh hectares accounting to 51% of the total geographical area. Gross cropped area was lakh hectares including lakh hectares area sown more than once, this works out to 120 % cropping intensity. Around 16% of the area was covered under forests, 7.5% area was under non-agricultural uses, 4.1% land was barren and uncultivable land and 2.17% land was cultivable waste. Permanent pastures, grazing land and miscellaneous tree crops constituted 4.77% of the total geographical area. About 9.57% of the total area falls under current fallow land. The increase in current fallow was on account of drought in 157 taluks during The details of Land Utilization situation are presented in Appendix 7.9(a) and 7.9(b). There was decline in the net area sown and area sown more than once on account of drought situation in 157 taluks during As a result of this area under current fallow increased to lakh hectares from lakh hectares during Land Holdings: Agriculture Census shows lakh farm holdings operating lakh hectares. Small and marginal holdings account for 76.44% of total holdings and operate only 40.05% of the total operated area, while semi-medium, medium and large holdings account for 23.57% of the Table 7.3 : Classification of Total Geographical Area Sl. No. Classification Area (lakh ha.) Total Geographical Area Forest Not available for cultivation: 2 a) Land put to non-agri.uses b) Barren & uncultivable land Cultivable waste 4.13 Uncultivated land excluding fallow land: 5 a) Permanent pastures & other grazing land b) Misc. Tree crops, Groves 2.83 Fallow Land 7 a) Current fallow b) Other fallow land Net Area Sown Total Cropped Area Area sown more than once Cropping Intensity - % 120% Source: Annual Season & Crop Reports of DE&S, Bangalore.

5 Economic Survey of Karnataka total holdings and their operational land holding is 59.95% out of the total operational area. Land Holdings in Karnataka is given in Table CROPPING PATTERN Karnataka State falls in Zone X (Southern Plateau and Hilly region) and Zone XII (West Coast Plains and Ghat region) as per the Agro-climatic Regional Planning of Planning Commission. The State is divided into 10 Agro-climatic zones. On account of this varied agro-climatic features almost all cereals, pulses, oilseeds and commercial crops are cultivated in different parts of the State. Farmers in Karnataka are very innovative and take lead in diversification as per the market trends. Agricultural crops are grown in three seasons viz. Kharif (70.26 lakh ha.), Rabi (33.74 lakh ha.) & summer (6.57 lakh ha.) in an area of lakh hectares. Cereals, Pulses, Oilseeds, Cotton, Sugarcane and Tobacco account for 49%, 23%, 20%, 4%, 4% and 1% respectively of the total agricultural cropped area. Paddy, Maize, Tur, Bengal gram, Cotton and Soyabean are witnessing higher trend in recent years, Table 7.4 : Land Holdings in Karnataka I. Number of Operational Holdings ( 000) Size Class Marginal (Below 1 ha.) Small (1 to 2 ha.) Semi Medium (2 to 4 ha.) Medium (4 to 10 ha.) Large (Above 10 ha.) Total II.Area of Operational Holdings ( 000 hectares) Marginal Small Semi Medium Medium Large Total III. Average Size of Operational Holdings (hectares) Marginal Small Semi Medium Medium Large Total Source: Karnataka Agricultural Census Reports and Agriculture Census

6 184 Economic Survey of Karnataka whereas as crops like Sunflower, Jowar, Ragi etc. are witnessing declining trend. The details on cropping pattern are given in Appendix DISTRIBUTION OF INPUTS Fertilizers Distribution of Fertilizers For Kharif 2014, the State Government had projected the requirement of various grades of fertilizers as lakh tonnes which include DAP- 4.0 lakh tonnes, MOP lakh tonnes, Complex lakh tonnes, Urea- 8.0 lakh tonnes and Others 1.07 lakh tonnes {(Mono Ammonium Phosphate, Potassium Schoenite (PS), Ammonium Sulphate, Ammonium chloride (AC), Calcium Ammonium Nitrate (CAN), Rock Phosphate (RP), Single Super Phosphate (SSP)}. Trends in fertilizer consumption in terms of NPK nutrients are furnished in Table 7.5 and Appendix Buffer Stock of Fertilizer for Kharif 2014: To overcome the scarcity of fertilizers at critical period during the Kharif season, the State Government has decided to operate the Buffer Stocking of Fertilizers. The scheme of buffer stocking has been continued for Kharif A sum of Rs. 800/- crore loan has been extended from State Bank of Mysore to Karnataka State Co-operative Marketing Federation of Bangalore and MARKFED; they have been instructed to stock required fertilizers at district and taluk levels. Under the scheme, it has been planned to stock around 3.90 lakh tones of different grades of fertilizers, Out of which DAP lakh tones, MOP lakh tones, NPK lakh tones and Urea lakh tones. Up to end of December 2014, DAP tones, MOP tones, Complex tones, Urea tones and Others 5949 tonnes; in total tones fertilizers have been stocked. This arrangement in turn helped to manage the fertilizer demand /supplied situation smoothly in the State and there was no major problem with respect to availability of fertilizers Seeds Distribution Production and distribution of Seeds As per the Seed Replacement Norms, Seed Replacement Rates fixed for different Agricultural Crops for is as follows: 1. Cereals : 33 to 38 percent 2. Pulses : 33 percent 3. Oilseeds : 33 to 89 percent 4. Cotton : 33 percent 5. All Hybrids : 100 percent Production and supply of Breeder Seeds of different crops is being done by the State Agricultural Universities and Indian Council of Agricultural Research Institute (ICAR) Institutes. These organizations Table 7.5 : Consumption of NPK during last three years Sl. No Years N P K TOTAL (Tonnes) (Achievement up to Dec.)

7 Economic Survey of Karnataka produce and supply Breeder Seeds required for the State based on the advance indents placed by the Department of Agriculture. The Seed Association of India is the Nodal agency for supply of breeder seeds to the private seed producing agencies. Certified Seed production and distribution in the State is being done by Karnataka State Seeds Corporation, National Seeds Corporation, Karnataka Co-operative Oilseed Growers Federation, State Agricultural Universities and number of private seed supplying agencies. Seed producing and supplying agencies fix the procurement and selling rates of various seeds taking into account, procurement rates, production costs, certification, processing, packaging and other overhead charges. Production and distribution of Certified: Quality seeds in the State from to in Table Distribution of seeds at subsidized rates to Farmers during : During Kharif 2014, it was programmed to distribute 12 crop seeds viz., Paddy, Ragi, Jowar, Maize, Bajra, Cowpea, Green gram, Black gram, Red gram, Groundnut, Sunflower, and Soybean crops in subsidy for L1 rates to farmers under State sectors Seeds Supply and other investments Scheme and Rashtriya Krishi Vikas Yojane. Totally 4.50 lakh quintal seeds have been distributed and Rs lakhs subsidy amount is utilized for this purpose. Totally lakh farmers have been benefited. During Rabi/Summer , it is programmed to distribute seeds of 12 crops under subsidy. Up to end of December 2014, totally 1.71 lakh quintal seeds have been distributed and Rs lakhs subsidy amount is utilized for this purpose and 4.96 lakh farmers have been benefited. Karnataka Seed Mission Seed is an important and crucial agricultural input; the Karnataka Seed Mission Scheme is being implemented in the State since under RKVY. Components have been included to strengthen Certified Seed Production and Certified Seed distribution programmes in the state. Objectives: To achieve enhancement in agricultural productivity through increased SRR & Comprehensive Development of all facts of seed sector in Karnataka through a mission mode approach. To make Karnataka a Global Destination for seed production. To identify gaps in seed requirement, production and infrastructure for quality seed production and marketing. To have farmer centric approach in varietal development, seed production and marketing Plant Protection Objectives of the scheme: 1. Encouraging the farmers to use bio pesticides and bio control agents by distributing on subsidy to the farmers for effective management of insect pests and diseases of the crops thereby reducing the environmental pollution caused by chemical pesticides. Table 7.6 : Production and distribution of Certified: Quality seeds Particulars (Target) Production Distribution Unit: Quantity in quintals

8 186 Economic Survey of Karnataka Distribution of improved and scientific metal storage bins on subsidy to farmers for effective and scientific storage of grains, thereby reducing the loss of grains due to rodents, diseases, insects and moisture. 3. Distribution of Pesticides to the farmers for effective control of frequently occurring endemic pests and diseases. 4. Effective implementation of inputs quality control. 5. Seed treatment campaign: Impact of the Scheme: 1. Use of Bio pesticides and bio control agents by the farmers for eco-friendly measures to control outbreak of insect, pests and diseases. 2. Prevention of environmental pollution. 3. Reduction in loss of grains due to Rodents, insects, diseases and moisture. 4. Availability of quality inputs to the farmers. 5. Effective management of crop pests. 6. Increase in yield of crops Agricultural implements - Farm Mechanization The Centrally Sponsored Scheme of Farm Mechanization Programme was being Farm Mechanization Programme is being implemented since In the scheme is being implemented both under Central (RKVY) and State sector. The total allocation of the budget for the Programme for the year is Rs Lakhs. 50% subsidy is provided for the general category farmers and 90 % subsidy to the farmers belonging to Scheduled Caste and Schedule Tribes. The main objective of the scheme is to popularize mechanized farming in order to reduce drudgery in farm operations, labour use, to save time and to cover more area in short span of time. Mechanized farming helps to increase efficiency in farming operations and ultimately results in higher production and productivity. The details of expenditure incurred during the last three years under Farm Mechanization programme are in Table Custom Hire and Service Centres: In the State, majority of the farmers come under small and marginal category and their land holdings are less than two hectares. Purchase and use of hi-tech farm machinery is not viable and affordable to the small and marginal farmers, there is a necessity to provide a way for them for use of farm machinery. In this direction, the Department of Agriculture has a programme for establishment of Custom Hire and Service Centre (CHSC) in order to facilitate use of farm machinery by small and marginal farmers through custom hiring. In the State, 186 CHSCs are being established one each at the every sub block level. An amount of Rs.70.00crores has been provided for the year National Mission on Micro irrigation Micro Irrigation scheme is implemented by the Department of Agriculture with a main objective of encouraging judicious use of Table 7.7: Farm Mechanization Programme in Karnataka Farm Mechanization (All Schemes) (Rs in Lakh) Scheme

9 Economic Survey of Karnataka water in Agriculture by farmers. The Central Assistance was provided from the year % subsidy is provided to general farmers and 90% subsidy is provided for Schedule Caste/Schedule Tribe farmers for installation of Micro Irrigation system till Dt: As per the Government Order No:AD/91/ASC/ 2013, Dtd: , subsidy has been enhanced to 90% (GoI share 40%+ GoK share 50%) for all category of farmers for installation of Drip and Sprinkler irrigation systems. For the year , an amount of Rs Lakhs has been earmarked for the implementation of Micro Irrigation Scheme in the state. The details of expenditure during the last three years under this programme are given in the following Table PROGRAMMES AND SCHEMES IMPLEMENTED BY THE STATE GOVERNMENT CENTRALLY SPONSORED SCHEMES National Food Security Mission (NFSM) National Food Security Mission was started during 11th Five Year Plan and has been continued for the 12th Five year plan also. During 12th Plan it has been programmed to achieve higher production and productivity of Coarse Cereals and Commercial crops (Cotton & Sugarcane) in addition to Rice and Pulses. 1. NFSM-Rice: (7 Districts - Belgaum, Shimoga, Uttara Kannada, Dakshina Kannada, Udupi, Haveri & Yadgir) Under this scheme provision has been m a d e f o r H a. a r e a c l u s t e r demonstrations on Rice production Table 7.8 : Details of Micro-Irrigation Scheme technologies (Direct Seeded Rice, Line sowing, SRI Method etc) and Cropping Systems. Distribution of improved varieties/hybrid seeds, inputs for Integrated Nutrient and Pest Management, Agricultural machinery, Pumpsets, Drip irrigation sets and pipes for carrying water were provided under subsidy along with organization of trainings. During demonstrations were taken up in hectares against the target of 8425 hectares. 2. NFSM-Pulses: (All 30 districts) Under this scheme provision has been m a d e f o r H a. a r e a c l u s t e r demonstrations on improved Production technologies and Cropping Systems. Distribution of improved variety seeds, inputs for Integrated Nutrient and Pest Management, Agricultural machinery, Pumpsets, Drip irrigation sets and pipes for carrying water were provided under subsidy along with organization of trainings. During demonstrations were taken up in hectares against the target of 32,960 hectares. 3. Additional Rabi Pulses Production Programme: Under this scheme provision has been made for distribution of improved varieties/hybrid seeds, inputs for Integrated Nutrient and Pest Management, Agricultural machinery, Pumpsets, Drip irrigation sets and pipes for carrying water under subsidy. 4. NFSM-Coarse Cereals: (11 Districts - Bagalkote, Belgaum, Bellary, Bijapur, Chitradurga, Davanagere, Gulbarga, Haveri, Koppal, Raichur & Tumkur) Under this scheme provision has been made for 100 Ha. area cluster demonst- (Rs. Lakhs) Scheme CSS Micro Irrigation

10 188 Economic Survey of Karnataka r a t i o n s o n i m p r o v e d p r o d u c t i o n technologies (Varieties and Hybrids), Ridge Furrow Method of Sowing and Cropping system based demonstrations on inter cropping with pulses. During demonstrations were taken up in hectares against the target of 43,510 hectares. 5. NFSM - Commercial Crops: Cotton: (15 Districts- Belgaum, Bellary, Bijapur, Chamarajanagar, Chitradurga, Davanagere, Dharwad, Gadag, Gulbarga, Haveri, Koppal, Mysore, Raichur, Uttara Kannada, Yadgir) Under this scheme provision has been made for Front Line cluster Demonstrations on Integrated Crop Management (ICM), Desi and Extra Long Staple Cotton /ELS Cotton seed production, trials to promote High Density Planting System and Front Line Demonstrations on intercropping systems. During demonstrations were taken up in 601 hectares against the target of 795 hectares. Sugarcane: (12 Districts- Bagalkote, Belgaum, Bellary, Bidar, Bijapur, Chamarajanagar, Davanagere, Gulbarga, Mandya, Mysore, Shimoga &, Uttara Kannada) Under this scheme provision has been made for demonstrations on intercropping and single bud chip technology with sugarcane, distribution of tissue culture plantlets and to organize a state level training. During demonstrations were taken up in 260 hectares against the target of 300 hectares. For the year , an amount of Rs lakhs has been provided. Impact of NFSM Programme: The implementation of NFSM Rice & Pulses in the State from has helped to achieve 15% increase in area, 24% increase in production and 9% increase in average yield of Rice during 11th plan period over the average of 10th plan period. Similarly, in case of pulses also the percentage increase in area, production and yield was 17%, 53% and 31% respectively, over the average of 10th plan period.(table 7.9) RASHTRIYA KRISHI VIKAS YOJANA (RKVY) Government of India has launched a Special Additional Central Assistance Scheme called Rashtriya Krishi Vikas Yojana" from in order to reorient the Agriculture Development strategies for rejuvenation of Agriculture to meet the needs/demands of farmers. It incentivizes the States to increase public investment in Agriculture and allied sectors and aims at achieving the goal of reducing the yield gaps in important crops and thus maximizes returns to the farmers. For the year , an amount of Rs crore was released and funds were utilized for implementation of the schemes related to Agriculture, Horticulture, Animal Husbandry, Table 7.9 : Impact of NFSM Programme Crop Area : in Lakh Hectares, Procution : in Lakh Tonnes, Yield : in Kgs/hect. Avg. of 10 th Plan Period ( to ) Avg. of 11 th Plan Period ( to ) Percentage increase/ decrease during 11 th Plan over 10 th Plan Period A P Y A P Y A P Y Rice Pulses

11 Economic Survey of Karnataka Fisheries, Agricultural Marketing, Sericulture, University of Agricultural Science (Bangalore, Dharwad and Raichur), UAHS, Shimoga, Karnataka State Seeds Corporation and other Departments/ Institution. During an amount of Rs crore has been sanctioned for implementation of various schemes & subschemes of RKVY as mentioned below. Up to end of December 2014, Government of India has released an amount of Rs crore and an amount of Rs crore has been utilized for various schemes till date. The detail of allocation of funds during is given in Table An amount of Rs crore has been earmarked for to Agriculture Department for implementation of the following schemes is given in Table Table 7.10 : Allocation of funds under RKVY Scheme (Rs. in Crore) Sl. No Title Allocation 1. Normal RKVY Sub-Schemes 2. Vegetable Initiative for Urban Clusters National Mission on Protein Supplements Additional Fodder Development Programme 7.68 Total Table 7.11 : Projects implemented by the Department of Agriculture (Rs. in crore) Sl. No. Name of the Project Budget approved NORMAL RKVY 1. Karnataka Farm Mechanization-Custom Hire Services Centres Strengthening of Bhoochetana -Phase Karnataka Seed Mission Agro Processing and Post Harvest Technology K-Kissan(Karnataka-Krishi Information Services & Networking) a. Computerization of all the Offices of Department of Agriculture b. Development of Web based MIS and issue of Kissan Pass Books Soil Testing and distribution of Soil Test Cards Micro Irrigation Strengthening of State Pesticide Testing Laboratory Fencing of Seed Farms 1.93 INSIMP balance amount of Administrative Cost 8.00 Total

12 190 Economic Survey of Karnataka National Mission of Oilseeds and Oil Palm NMOOP is a Centrally Sponsored Scheme for the development of Oilseeds, and Oil Palm started during this year with the objective of increasing production and productivity of these crops and to attain sustainability in Agriculture. The mission is proposed to be implemented through three Mini Missions i.e. MM-I on oilseeds, MM-II on oil palm, MM-III on tree borne oilseeds. The Scheme is being implemented in all the 30 districts of the state. The fund sharing pattern is 75% Central and 25% State share. In Karnataka, National Mission on Oilseeds (MM-I) operates in two sectors, state sector and ZP sector. The Govt. of India has accorded the action plan approval for Rs lakhs with central share of Rs lakhs and state share of Rs lakhs for the year Soil Health Mission: Implementation of Soil Health Mission includes collection of soil samples, analysis of soil samples for macro nutrients and micro nutrients, and this will be linked to K- Kissan project in issue of farmer passbook including soil fertility status and crop specific recommendation of nutrients to all the farmers of Karnataka Objectives of Soil Health Mission are as follows: 1. To issue soil health cards to all farmers of the Karnataka in a span of three years, so as to provide a basis to include nutrient deficiencies in fertilization practices. 2. To diagnose soil fertility related constraints with standardized procedures for sampling and analysis and design taluka/block level fertilizer recommendations in the targeted districts. 3. To develop crop specific nutrient management in the districts for enhancing nutrient use efficiency. 4. To promote soil test based balancing of nutrients to manage fertility related risks for higher production. 5. To conduct demonstrations with diversified crops to quantify benefits of improved nutrient management practices in terms of increased crop yields and economic viability of farmers Expected Outcome: 1. Distribution of Soil Health Cards to all the farmers in a round of every three years to promote Soil Health Management. 2. It will promote balanced and judicious use of plant nutrients. 3. Promotion of integrated nutrient system is expected to reduce the consumption of chemical fertilizers by 20%. 4. The productivity of selected crops is expected to increase about 20%. 5. The demand for organic sources of plant nutrient like bio-fertilizers, organic manure, vermi-compost, slow release nitrogenous fertilizer like Neem/ sulphur coated urea will increase, which in turn improve the soil fertility as well nutrient use efficiency. Table 7.12 : Target and Achievement under NMOOP Financial: Rs. in Lakhs Target Achievement (December 2014) Expected Achievement

13 Economic Survey of Karnataka National Mission on Food Processing (NMFP) Ministry of Food Processing Industries (MoFPI), Government of India has launched a new centrally sponsored scheme (CCS) National Mission on Food Processing (NMFP) during the 12th Five Year plan to be implemented through States. The proposed NMFP contemplates establishment of a National Mission as well as corresponding Missions in the State and District level. This scheme is proposed to be implemented with the funding pattern in the ratio of 75:25 by Government of India and State. The State during the year had already made a budget provision of Rs.500 lakhs as a State share. This Centrally sponsored scheme will help to overcome some of the crisis in the field of agriculture like fall of price due to glut in the market, severe wastages of some of the perishable agricultural produce, low economic returns due to severe interference of middlemen, unplanned crop production etc National Mission for Sustainable Agriculture (NMSA) Sustaining agricultural productivity depends on quality and availability of natural resources like soil and water. Agricultural growth can be sustained by promoting conservation and sustainable use of these scarce natural resources through appropriate location specific measures. Indian agriculture remains predominantly rainfed covering about 60% of the country's net sown area and accounts for 40% of the total food production. Thus, conservation of natural resources in conjunction with development of rainfed agriculture holds the key to meet burgeoning demands for food grain in the country. Towards this end, National Mission for Sustainable Agriculture (NMSA) has been formulated for enhancing agricultural productivity especially in rainfed areas focusing on integrated farming, water use efficiency, soil health management and synergizing resource conservation Mission Objectives 1. To make agriculture more productive, sustainable, remunerative and climate resilient by promoting location specific I n t e g r a t e d / C o m p o s i t e F a r m i n g Systems; 2. To conserve natural resources through appropriate soil and moisture conservation measures; 3. To adopt comprehensive soil health management practices based on soil fertility maps, soil test based application of macro & micro nutrients, judicious use of fertilizers etc.; 4. To optimize utilization of water resources through efficient water management to expand coverage for achieving 'more crop per drop'; 5. To develop capacity of farmers & stakeholders, in conjunction with other ongoing Missions e.g. National Mission on Agriculture Extension & Technology, National Food Security Mission, National Initiative for Climate Resilient Agriculture (NICRA) etc., in the domain of climate change adaptation and mitigation measures; 6. To pilot models in select blocks for improving productivity of rainfed farming by mainstreaming rainfed technologies refined through NICRA and by leveraging resources from other schemes/missions like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Integrated Watershed Management Programme (IWMP), RKVY etc.; and 7. To establish an effective inter and intra D e p a r t m e n t a l / M i n i s t e r i a l c o - ordination for accomplishing key deliverables of National Mission for Sustainable Agriculture under the aegis of NAPCC.

14 192 Economic Survey of Karnataka NMSA has following four (4) major programme components or activities: 1. Rainfed Area Development (RAD): 2. On Farm Water Management (OFWM): 3. Soil Health Management (SHM): 4. Climate Change and Sustainable Agriculture: Monitoring, Modeling and Networking (CCSAMMN): Support to State Extension Programmes for Extension Reforms (ATMA Scheme) The 12th Plan Approach Paper identifies several challenges faced by the agricultural extension and also gives suggestions to deal with the same. Some of these include integrating Krishi Vigyan Kendra's (KVKs) problem solving skills and the feed-back they provide to State Agriculture Universities (SAUs) and National Agriculture Research System (NARS) with ATMA. The aim of the Mission is capacity building and institution strengthening to promote mechanisation, availability of quality seeds, plant protection etc. and encourage the aggregation of farmers into Interest Groups (FIGs) to form Farmer Producer Organizations (FPOs). Use of interactive and innovative methods of information dissemination will be used and convergence brought under different programmes and schemes at village level through the institution of ATMA (Agriculture Technology Management Agency) and Block Technology Teams (BTTs) AIMS and OBJECTIVES: The Scheme 'Support to State Extension Programmes for Extension Reforms' aims at making extension system farmer driven and farmer accountable by disseminating technology to farmers through new institutional arrangements viz. Agricultural Technology Management Agency (ATMA) at district level to operationalize the extension reforms on a participatory mode Scheme focuses on the following key extension reforms: Encouraging multi-agency extension strategies involving Public/ Private Extension Service Providers. Ensuring an integrated, broad-based e x t e n s i o n d e l i v e r y m e c h a n i s m consistent with farming system approach with a focus on bottom up planning process. Adopting group approach to extension in line with the identified needs and requirements of the farmers in the form of CIGs & FIGs and consolidate them as Farmers Producer Organizations. Facilitating convergence of farmer centric programmes in planning, execution and implementation. Addressing gender concerns by mobilizing farm women into groups and providing training to them. For effective implementation of the latest technologies, the on-farm demonstrations as well as farmer's trainings and exposure visits are taken-up Crop Insurance Scheme: a) National Agricultural Insurance Scheme (NAIS): National Agricultural Insurance Scheme (NAIS) was being implemented in the State from Kharif 2000 to Kharif The financial allocation for the year is Rs lakhs. Progress made under NAIS from Kharif 2011 to Kharif 2013 is as follows in Appendix b) Weather Based Crop Insurance Scheme (WBCIS): This is an alternative scheme for NAIS framed by Government of India and was launched in the country during Kharif The scheme compensates the insured farmers against the likelihood of financial loss on account of anticipated loss

15 Economic Survey of Karnataka in crop yield resulting from incidence of adverse weather conditions and will cover the risk of weather parameters like rainfall, relative humidity, temperature, wind velocity etc., The scheme is compulsory for loanee farmers and voluntary for nonloanee farmers. All the payable claims shall be the responsibility of the Insurance Companies. The scheme is continued during Kharif 2014 covering 11Annual Commercial and Horticulture crops viz., Cotton (I), Cotton (RF), Onion(I), Onion(RF), Chilly(I), Chilly(RF), Potato(I), Potato (RF), Grapes, Banana and Pomegranate in 464 reference unit areas (hoblis) of all the Districts except Udupi. The actuarial premium rates are charged under the scheme, but capped at 12%. Farmers would pay concessional rates of premium i.e.6%. The difference in the premium i.e. 6% will be borne by State and Central Governments on 50: 50 basis. This Scheme is implemented by 5 insurance companies viz., AIC of India Ltd., ICICI Lombard GIC Ltd., HDFC ERGO GIC Ltd., Cholamandalam MS GIC Ltd. and IFFCO Tokio GIC Ltd.. During Rabi , 10 Horticulture crops viz., Potato (I), Onion (I), Chilly (I), G r a p e s, M a n g o, S w e e t O r a n g e, Pomegranate, Cashew, Tomato and Garlic are notified in 717 reference unit areas (hoblis) of 30 Districts. Last date for participation of both loanee and non-loanee farmers is for Rabi season. The progress made under Weather Based Crop Insurance Scheme from Kharif 2011 to is presented in Table c) Modified National Agricultural Insurance Scheme (MNAIS): Government of India launched Modified National Agricultural Insurance Scheme (MNAIS) during Rabi & Summer on pilot basis in the selected four districts of the State i.e. Gulbarga, Tumkur, Shimoga and Uttara Kannada. The modifications made by GOI are as follows; 1. Bringing unit of Insurance to Grama Panchayath level for major crops. 2. Indemnity level will be 80 & 90%. 3. Excluding 2 calamity years' data out of 7 years yield data for calculation of threshold yield. Table 7.13A : Details of Weather Based Crop Insurance Scheme Season/year No. of farmers participated Premium paid by farmers (Rs. in lakhs) No. of Beneficiaries Claims (Rs. in lakhs) 2011 Kharif Rabi Total Kharif Rabi Total Kharif Rabi Total Grand Total

16 194 Economic Survey of Karnataka Claim liability will be on insurance companies and Government will provide only premium subsidy. 5. Covering pre sowing and post harvest risk. During Kharif 2014 NCIP-MNAIS is implemented in all 30 Districts in Karnataka 4 insurance companies viz., AIC of India Ltd., ICICI Lombard GIC Ltd., HDFC ERGO GIC Ltd., and IFFCO Tokio GIC Ltd. are participating. 25 crops were notified viz., Paddy(I), Paddy(RF), Maize(I), Maize(RF), Jowar (I), Jowar (RF), Ragi (I), Ragi (RF), Bajra(I), Bajra (RF), Navane (RF), Save (RF), Black gram (RF), Tur (I), Tur (RF), Green gram (RF), Horse gram (RF), Soyabean (I), Soyabean (RF), Sesamum (RF), Castor (RF), Sunflower (I), Sunflower (RF), Groundnut (I) and Groundnut (RF). Taluk-wise major crops were notified at Grama Panchayath level and other crops were notified at Hobli level during Kharif During Rabi & Summer this scheme is continued in all the Districts except Bangalore (Rural) and implemented by AIC of India Ltd., Taluk-wise major crops were notified at Grama Panchayath level and other crops were notified at Hobli level. 19 crops are being notified during Rabi viz., Paddy(I), Maize(I), Maize(RF), Jowar (I), Jowar (RF), Ragi (I), Ragi (RF), Wheat(I), Wheat (RF), Bengal gram (I), Bengal gram (RF), Black gram (RF), Green gram (RF), H o r s e g r a m ( R F ), L i n s e e d ( R F ), Safflower(RF), Sunflower (I), Sunflower (RF) and Groundnut (RF). 5 crops are being notified during summer viz., Paddy (I), Ragi (I), Groundnut (I), Groundnut (RF) and Sunflower (I). Last date for participation of loanee and non-loanee farmers is during Rabi and for summer The progress made under Modified National Agriculture Insurance Scheme from kharif 2011 to (Table 7.14). Table 7.14 : Details of Modified National Agriculture Insurance Scheme Season/year No. of farmers participated Premium paid by farmers (Rs. in lakhs) No. of Beneficiarie s Claims (Rs. in lakhs) 2011 Kharif Rabi & Summer Total Kharif Rabi & Summer Total Kharif Rabi & Summer Total Grand Total

17 Economic Survey of Karnataka Minimum Support Price Commission for Agricultural Costs and Prices, Government of India collects the information and views from all State G o v e r n m e n t s / S t a k e h o l d e r s a n d recommends Minimum Support Prices for various crops to the Union Cabinet for fixing the MSP of various crops. Procurement of commodities is undertaken by Food Corporation of India, NAFED, KOF etc. in the event of price crash below MSP. Details of Minimum Support Prices fixed for the year is furnished in Appendix Minimum Floor Price Scheme Minimum Floor Price Scheme is operated in Karnataka for perishable agriculture commodities like onion, potato, tomato and green chilies. The Agricultural Marketing Department arranges the procurement on these commodities through HOPCOMS in the districts/taluks after the sanction of cabinet sub-committee. 7.8 FLAGSHIP PROGRAMMES Bhoochetana Karnataka State has initiated a novel mission mode project 'Bhoochetana' from the year with the mission goal of increasing average productivity of selected r a i n f e d c r o p s b y 2 0 %. P r o j e c t implementation was planned in a phased manner from to Based on the success of the 'Bhoochetana' first phase, extension of project from to has been approved for 2nd phase. The consortium partners of the project are K a r n a t a k a S t a t e D e p a r t m e n t o f Agriculture, UAS, Bangalore/ Dharwad/ Raichur and ICRISAT, Hyderabad. Main strategies: Soil test based nutrient management with a m a j o r t h r u s t t o m i c r o n u t r i e n t s, distribution of 50% subsidy at cluster village level, services of farmer facilitators for transfer of technology, wide publicity through wall writings, posters, village meetings and mass media, effective project monitoring and feedback. Bhoochetana programme is being implemented in all 30 districts, for the year to cover an targetted area of 50.0 lakh hectares in rainfed area and 8 lakh ha. in irrigated area. During Kharif lakh hectares progress has been achieved. The budget for year is Rs.102 crore. Along with technical message, required inputs are made available to farmers at cluster village level at 50% subsidy in 747 RSKs, 3440 cluster villages with the services of 6,572 Farmer facilitators Farmer Field Schools were conducted successfully for transfer of production technology to farmers. The targeted area for 2014 Rabi is 25 lakh hectares GOK-CGIAR Initiative for improving the Rural Livelihoods in Karnataka (Bhoochetana Plus) scheme: In order to ensure that our farmers are protected from frequent drought conditions, steps have been taken to formulate special action plans in collaboration with international level scientific institutions such as International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), International Rice Research Institute (IRRI), Center for International Maize and Wheat Improvement Center (CIMMYT), International Livestock Research Institute (ILRI) and International Food Policy Research Institute (IFPRI). Right strategies designed with the assistance from these institutes will be implemented on pilot basis in four districts, which will then be extended to other areas. Objectives: To form action oriented consortium of CGIAR institutions to operationalize action research scaling-up model in partnership with Agriculture and line Departments viz; Animal Husbandry, Horticulture,, Rural Development & Panchayath Raj, etc in the State to increase crop yields by 20% and farmers income by 25% over a period of four years.

18 196 Economic Survey of Karnataka To establish four sites of learning on pilot basis, scaling-up approach integrated participatory research for development to benefit small and marginal farmers in irrigated and rain fed agriculture areas representing the revenue divisions of the state Implementation: The Scheme implementation is planned for a period of four years ( to ) The Scheme is in implementation in four districts viz., Bijapur, Chikkamagalur, Raichur and Tumkur on pilot basis in an area of ha in each district by converging ongoing schemes of Agriculture & allied departments. The budget allotted for is Rs crore Krishi Bhagya 70% of the cultivated area in the State is under rainfed agriculture. Despite this limitation, 55% of food grain production and 75% of oilseed production is contributed by the rainfed areas. Thus, conservation of high quality natural resources like soil and water, enhancement of agriculture productivity and income levels of farmers/ agriculture labourers needs to be ensured. Krishi Bhagya scheme has been conceived for improving livelihood of rain dependent farming community. K r i s h i B h a g y a s c h e m e w i l l b e implemented initially in 5 major dry land zones in 23 districts covering 107 taluks. Through conservation, storage and efficient use of rain water, adoption of profitable cropping systems, cultivation of high income earning horticultural crops, promotion of animal husbandry activities and promotion of infrastructure creation for agriculture, the scheme aims to achieve sustainable growth in agriculture. It is planned to implement the scheme in a Mission Mode in a phased manner over five years. Budgetary provision of Rs crore is made during Savayava Bhagya Yojane This mega programme initiated during the later part of is an extension of the earlier Organic village/site programme to hobli level with few modifications in its implementation viz, developing good m a r k e t i n g l i n k a g e s a n d m a r k e t development for the organic products of the state. Government order was issued for implementation of Savayava Bhagya Yojane during The programme is being implemented in association with the NGO's selected for each taluk transparently through e- tendering. NGO selected for the taluka has been entrusted with responsibility of bringing around 100 ha. area under organic farming in each hobli of the taluka Important features of the programme: Programme implemented in 571 hoblis of the state. Programme implemented in association with the NGO's. Constitution of Site Committee comprising representatives from farmers associations, NGO representative and Department officer to prepare action plan for implementation of the Programme. District Organic Farming Steering Committee under the chairmanship of Joint Director of Agriculture to approve action plans, inspection & monitoring Advisory Committee (Technical Committee) under the chairmanship of Director of Agriculture and District Level Steering Committee under the chairmanship of District Joint Director of Agriculture. High Level Committee under the chairmanship of Hon'ble Minister for Agriculture for monitoring and implementation of the Programme.