Agricultural Inputs and. Services in India

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1 Agricultural Inputs and Services in India By D. Amutha Assistant Professor of Economics, St Mary's College (Autonomous), Tuticorin, Tamil Nadu New Century Publications New Delhi, India

2 Contents About the Book.. Author 's Profile Preface Vll viii xix-xxx 1. Indian Agriculture at a Glance Role of Agriculture in the Indian Economy 1.2 Use Distribution of India's Geographica! Area 1.3 Subsistence Nature of Farming and Small-sized Holdings Reasons for Small Holdings Disadvantages of Small Holdings Farm Size and Productivity 1.4 Cropping Pattern in Indian Agriculture Classification of Agricultural Crops 1.5 Low Productivity of Indian Agriculture Causes of Low Productivity 1.6 Declining Share of Agriculture in Gross Domestic Product (GDP) 1.7 Eleventh Five Year Plan ( ) on Agriculture 1.8 Oilseeds/Edible Oils: Areas of Concern 1.9 Post-harvest Losses 2. Agricultural Policy and Institutions Constitutional Provisions for Agriculture 2.2 Ministry of Agriculture Departments of the Ministry Important Organisation under the Ministry 2.3 National Agriculture Policy (NAP), National Policy for Farmers, Recent Programmes/Schemes for Agricultural Development Rashtriya Krishi Vikas Yojana (RKVY), Macro Management of Agriculture (MMA) Scheme Extending Green Revolution to the Eastem States Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) Support to State Extension Programmes for Extension Reforms

3 X Agricultural Inputs and Services in India National Project on Promotion of Organic Farming (NPOF) Policy Framework for Agricultural Extension (PFAE) 3. Seeds, Insecticides, Farm Machines and Agricultural Research Seeds National Seeds Policy, Protection of Plant Varieties and Farmers' Rights Act, Task Force on Agriculture-Related Applications of Biotechnology Exports and Imports of Seeds Private Sector in Seed Production National Seed Mission Pilot Scheme on Seed Crop Insurance Strengthening of Seeds Quality Control Organization (State Seed Certification Agencies and State Seed Testing Laboratories) National Seed Research and Training Centre (NSRTC), Varanasi Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds Seed Treatment Campaign The Seeds Bill, Plants Protection and Insecticides Integrated Pest Management (IPM) Plant Quarantine Insecticides Act, Pesticides Management Bill, Monitoring of Pesticide Residue at the National Level Locust Control and Research Capacity Building in Plant Protection National Agricultural Bio-security System 3.3 Agricultural Implements and Machines Training of Farmers and Technicians Testing of Farm Machines and Equipments Demonstration of Newly Developed Agricultural/Horticultural Equipments at Farmers' Fields State Agro Industries Corporations (SAICs)

4 Contents 3.4 Agricultural Research 4. Fertilizer Pricing Policy, Control and Subsidy 4.1 Manures and Fertilizers 4.2 Department of Fertilizers Strategy for Growth Movement of Fertilizers 4.3 Growth of Fertilizer Industry Pattern of Fertilizer Consumption 4.4 Self-sufficiency in Fertilizer Sector 4.5 Fertilizer Pricing Policy and Subsidy Retention Price Scheine (RPS) High Powered Fertilizer Pricing Policy Review Committee New Pricing Scheme (NPS) for Urea Finance Commissions on Fertilizer Subsidy 4.6 Feedstock Policy 4.7 Joint Ventures Abroad 4.8 Quality of Fertilizers 4.9 Use of Fertilizers and Soil Health National Project on Management of Soil Health and Fertility, Public Sector Undertakings FCI Aravali Gypsum and Minerals India Limited (FAGMIL) Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) Fertilizer Corporation of India Limited (FCIL) Madras Fertilizers Limited (MFL) Project and Development India Limited (PDIL) Hindustan Fertilizer Corporation Limited (HFCL) Rashtriya Chemicals and Fertilizers Limited (RCFL) National Fertilizers Limited (NFL) Fertilizers and Chemicals Travancore Limited (FACT) 4.11 Krishak Bharati Cooperative Limited (KRIBHCO) 4.12 Information Technology (IT) in the Department of Fertilizers Web-based Fertilizer Production Monitoring System Fertilizer Subsidy Payment Information System Application System for Monitoring Energy Consumption Norms

5 xii Agricultural Inputs and Services in India Application System for Revision in Urea Concession Rates Web-based Fertilizer Distribution and Movement Information System Web-based Fertilizer Concession Scheme Monitoring System Web-based Fertilizer Import Management System Web-based Handling and Payments System for Fertilizer Imports Fertilizer Project Monitoring System 4.13 Twelfth Five Year Plan ( ) on Chemical Fertilizers 5. Water Resources and Irrigation 5.1 Land-Water Relationship Surface Water and Ground Water 5.2 Physiography of Water Spread of Water Bodies in India Rainfall Rivers of India Climate Occurrence of Floods Repair, Renovation and Restoration (RRR) of Water Bodies 5.3 Water Supply for Agriculture/Irrigation History of Irrigation Development in India Importance of Irrigation Sources of Irrigation Minor and Major Irrigation Scheines Command Area Development Programme (CADP) Accelerated Irrigation Benefits Programme (AIBP) Watershed Development Integrated Watershed Management Programme (IWMP) National Policy for Farmers (2007) on Water Availability 5.4 Ground Water Scenario Importance of Ground Water Behaviour of Ground Water Problems and Challenges National Ground Water Management Programme Legal Framework for Ground Water

6 Contents xiii 5.5 Climate Change and Uncertainty in Water Availability Climate Change and Water Supply Occurrence ofdroughts River Hydrology and Inland Flooding Cyclonic Storms, Storni Surges and Coastal Flooding Sea Level Rise 6. Agricultural Credit and Rural Co-operatives Credit and Agricultural Development 6.2 Credit Needs of the Indian Farmers 6.3 Sources of Credit for the Farmers Institutional (or Formal) Sources Non-institutional (Informal) Sources 6.4 Co-operative Credit Societies 6.5 Co-operative Banks Classification of Co-operative Banks 6.6 Rural Co-operatives Short-term Rural Co-operatives Long-term Rural Co-operatives 6.7 Rural Co-operatives: History and Recerit Policy Measures 6.8 Primary Agricultural Credit Societies (PACS) 6.9 Problems of Rural Co-operatives 6.10 Task Force on Revival of Rural Co-operative Credit Institutions 6.11 NABARD and the Co-operative Sector Credit Extended by NABARD 6.12 Advisory Committee on the Flow of Credit to Agriculture and Related Activities from the Banking System (Chairman: V.S. Vyas), Expert Group on Investment Credit in Agriculture, Working Group on Warehouse Receipts and Commodity Futures, Regulatory Framework and Supervision Asset Classification for State Government Guaranteed Advances J Additional Provisioning Requirement for NP As Prudential Guidelines on Agricultural Advances Inspections 6.16 Problem of Triangular Regulation of Rural Co-operatives

7 xiv Agricultural Inputs and Services in India 6.17 Agricultural Credit: Recent Policy Announcements Agricultural Debt Waiver and Debt Relief Scheme, Micro Finance, Self-help Croups {SHGs), Kisan Credit Cards (KCCs) and NABARD Credit Facilities for the Poor 7.2 Micro Finance Initiative of NABARD 7.3 Self-help Group (SHG)-Bank Linkage Programme, Meaning of a Self-help Group (SHG) Graduation of Mature SHGs into Micro Enterprises 7.4 Alternative Models of Micro Finance 7.5 Central Government and Micro Finance 2 Development and Equity Fund (MFDEF) dia (RBI) and Micro Finance Priority-sector Status for Bank Loans to Micro Finance Institutions (MFIs) 7.7 NABARD and Micro Credit AboutNABARD NABARD's Strategy for Popularity of Micro Finance Tracking the Progress of Micro Finance Training and Capacity Building Micro Enterprise Development Programme (MEDP) for Skill Development Grant Support to Partner Agencies for Promotion and Nurture of SHGs Support to Activity-based Groups Support to Federations of SHGs Special Initiative for Scaling-up SHGs/SHG Federations Promotional Support to Micro Finance Institutions (MFIs) Quality and Sustainability of SHGs Centre for Micro Finance Research N AB ARD-German Technical Collaboration (GTZ) in Rural Finance Joint Liability Groups (JLGs) 7.8 Group on Rural Credit and Micro Finance, Kisan Credit Cards (KCCs) and NABARD Objectives of the Scheme

8 Contents xv Salient Features of the KCC Scheme Advantages of the KCC Scheme to the Farmers Benefits of the Scheme to the Banks Personal Accident Insurance Scheme KCC Initiatives by the Government of India Major Steps Taken by NABARD KCC Scheme: An Assessment 8. Agricultural Marketing and Trade Importance of Agricultural Marketing 8.2 Present System of Marketing Agricultural Produce 8.3 Marketing Organization of the Ministry of Agriculture Directorate of Marketing and Inspection (DMI) Chaudhary Charan Singh National Institute of Agricultural Marketing (NIAM) Small Farmers' Agri-Business Consortium (SFAC) 8.4 Measures to Improve Agricultural Marketing 8.5 Inter-Ministerial Task Force on Agricultural Marketing 8.6 Salient Features of the Model Act for State Agricultural Produce Marketing (Development and Regulation) Act, Agricultural Marketing and Trade in the National Policy for Farmers 8.8 Gramin Bhandaran Yojana (Rural Godown Scheme), Objectives of the Scheme Salient Features of the Scheme 8.9 Agricultural Marketing Information Network (AGMARKNET), Objectives of the Scheme Proposed Activities 8.10 Modem Food Retailing 8.11 Forward Markets Commission (FMC) 8.12 Tenth Five Year Plan ( ) on Agricultural Marketing 8.13 Eleventh Five Year Plan ( ) on Agricultural Marketing 9. Agriculture Insurance Insurance Business and Agriculture Fragmented and Scattered Holdings Inadequate Expertise

9 xvi Agricultural Inputs and Services in India Underdeveloped Infrastructure High Administrative Cost Illiteracy and Ignorance Inadequate Capital Base 9.2 Need for Insurance in Agricultural Sector 9.3 Classification of Agriculture Sector for Insurance Purpose Traditional or Subsistence Agriculture Semi-commercial and Emerging Sector Commercial Farming Sector Specialised Production Systems 9.4 Insurance Penetration in Agriculture: Potential and Requirements Gaining Foothold Controlling Costs Coordination between Banking and Insurance Sectors Local Representation Education and Training Insurance on Group Basis Step-by-step Approach Publicity Campaigns 9.5 Issues for Consideration Risk Management of Agricultural Insurance Financial Implications Role of the State Realignment of Insurance Business for Agriculture Sector Scope of Private Sector Companies Role of Parastatal Insurance Organisation Market-sponsored Companies Reinsurance 9.6 Advent and Development of Agriculture/Rural Insurance in India 9.7 Comprehensive Crop Insurance Scheme (CCIS): Scope and Contents Drawbacks of CCIS Experimental Crop Insurance Scheme (ECIS) 9.8 National Agriculture Insurance Scheme (NAIS) Operational Modalities Modified National Agricultural Insurance Scheme (MNAIS)

10 Contents xvii Critical Appraisäl 9.9 Ramfall Insurance Scheme (Varsha Bima) 9.10 Pilot Scheme on Seed Crop Insurance 9.11 Farm Income Insurance Scheme (FIIS) 9.12 Livestock Insurance 9.13 Non-crop Insurance Schemes 9.14 Agriculture Insurance Corporation 9.15 R.N. Malhotra Committee (1994) on Rural Insurance 10. Indian Agriculture and Information Technology. (IT) Need for IT-based Services to Farmers 10.2 Rural Portal of Ministry of Rural Development (MoRD) 10.3 National Rural Employment Guarantee Act Software Package (NREGASoft) Various Modules of the Software 10.4 IFFCO-ISRO Cooperation 10.5 Cyber Dhabas 10.6 E-Choupal 10.7 Kisan Call Centres (KCCs) 10.8 National e-govemance Plan in Agriculture (NeGP-A) 10.9 Other IT Services to Agricultural Sector LAN at Ministry of Agriculture Plant Protection Informatics and Communication Network (PPIN) Agricultural Marketing Information Network (AGMARKNET) Strengthening of Informatics in the Offices and Field Units of the Department of Agriculture and Cooperation (DAC)-DACNET MIS Support to Food Processing Industries Agricultural Extension Information System Network: VISTARNET Indian Agriculture On-line Infrastructural Facilities and Services Provided by NIC to the Ministry of Agriculture Animal Production and Health Information Network (APHNET) Agricultural Research Information System Network (ARISNET)

11 xviii Agricultural Inputs and Services in India Market Information System for Horticulture Integrated Fertilizer Management Information System (FERMIS) Activities in the North-Eastern Region Computerisation of Agricultural Census and Input Survey 11. Agricultural Exports and Imports Agricultural Exports Agriculture Export Zones (AEZs) Vishesh Krishi Upaj Yojana Agricultural and Processed Food Products Export Development Authority (APEDA) Strategy to Iucrease Agricultural Exports 11.2 Agricultural Imports Protecting Domestic Agriculture Appendix 1: Agriculture in India's Five Year Plans (I to XII Plan) Appendix 2: Glossary of Agricultural Terms Bibliography Index

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