STATE AGRICULTURE AND RKVY PROFILE (State: ASSAM )

Transcription

1 Page1 As on March 2012 STATE AGRICULTURE AND RKVY PROFILE (State: ASSAM ) Disclaimer: This document is compiled by Dr.Miftahul Islam Barbaruah for RKVY division of Department of Agriculture & Cooperation, Ministry of Agriculture, GOI. The findings, interpretations, and conclusions expressed in this document do not necessarily reflect the views of Ministry of Agriculture or Department of Agriculture, Government of Assam. All attempts are being made to consult with stakeholders and to ensure accuracy of data included in this work.

2 Page2 TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS... 4 LIST OF TABLE... 5 LIST OF FIGURES The State of Assam: General Analysis in the context of Agriculture Introduction State Administration The Economic Situation Infrastructure Industry The Banking Sector The Social Conditions Ecology The Divide and Drivers Priorities of Government of Assam Government funding norms for development programs Analysis of Agriculture Sector in Assam Importance of Agriculture in Assam Farming and Productivity in Assam Recent Government Interventions in Agriculture Performance of the Agriculture Sector Institutions Credit Delivery The Livestock Sector Importance Production System Livestock Population Production Consumption and Demand of Livestock Products Analysis of Response, Performance and Challenges... 34

3 Page3 5. The Fishery Sector Funds to Agriculture and Allied Sector (Other than RKVY) Status of Rastriya Krishi Vikash Yojana (RKVY) funding * Normal RKVY + Sub Schemes Status of DAPs / SAPs Completion Status of Projects approved by SLSC State Flagship Projects Status of compilation of Success Stories Status of output and outcome compilation Project approved by SLSC and Sanctioned by DAC Projects of FY Projects of FY Projects of FY Projects of FY Annexure Monthly Rainfall: District wise irrigation source and coverage: Zone and district wise soil type: Agro-climatic zone wise availability of major nutrient in Assam Micro-nutrient deficiency status Zone wise cropping pattern: Area, Productivity & Production of Autumn Rice in Assam, : Area, Productivity & Production of Summer Rice in Assam, : Area, Productivity & Production of Winter Rice in Assam, : Area, Productivity & Production of Fiber Crops in Assam, : Area, Productivity and Production of Oilseeds, : Area, Productivity and Production of Pulses, Area, Productivity and Production of Wheat, Maize and Other Cereals & Small Millets, Area, Productivity and Production of Sugarcane,

4 Page4 ABBREVIATIONS AND ACRONYMS AACP ADB ALPCO ARISP ATMA DAC DAP DCS DONER DOC FARMER FMC GOI ICMR ILRI IUCN NABARD NEC NEDFi RKVY SHG SLSC TMIDH UHT Assam Agricultural Competitiveness Project Asian Development Bank Assam Livestock & Poultry Development Corporation Ltd Assam Rural Infrastructure and Agricultural Services Project Agricultural Technology Management Agency Department of Agriculture and Cooperation District Agriculture Plan Dairy Cooperative Societies Ministry of Development of North Eastern Region Day Old Chick Fellowship for Agri Resource Management and Entrepreneurship Research Field Management Committee Government of India Indian Council of Medical Research International Livestock Research Institute International Union for Conservation of Nature National Bank for Agriculture and Rural Development North Eastern Council North Eastern Development Finance Corporation Ltd. Rashtriya Krishi Vikash Yojana Self Help Group State Level Sanctioning Committee Technology Mission for Integrated Development of Horticulture Ultra Heat Treated Milk

5 Page5 LIST OF TABLE Table 1 GDP Growth rate of Assam against five 5 year plan period... 9 Table 2 Percent Sectoral Distribution of Workers (2001) Table 3 Assam Agriculture (2011) General Profile Table 4 Area, Production and Productivity of FY in comparison to FY Table 5 Farm credit delivery situation (Feb 2012) Table 6 Fish and Fish Seed Production in Assam LIST OF FIGURES Fig 1 Percapita Income Comparison (Assam Vs India)... 9 Fig 2 Percent Contribution of Agriculture to State GDP - Assam Fig 3 Average yield (Kg / ha) of various crops in Assam in comparison to India Fig 4 Agricultural Growth in Assam Fig 5 Productivity Improvements of Major Agricultural Crops (Kg / Ha) Fig 6 Trend of Rice Production in Lakh MT Fig 7 Rice Productivity Trend (Narrowing the gap in last 5 years) Fig 8 Number and Trend of Pump set Installed for Assured Irrigation (up to 15th March'2012) Fig 9 Comparison of Milk Production with Human Population Growth Fig 10 Comparison of Meat Production with Human Population Growth Fig 11 Comparison of Egg Production with Human Population Growth Fig 12 Cross breeding program in cattle... 36

6 Page6 1. The State of Assam: General Analysis in the context of Agriculture 1.1. Introduction 1 Assam is the largest of the eight (8) Northeastern States, which as a group is one of the culturally rich, geo-politically important but economically backward regions of India. The State has a land area of 78,438 sq. km. which is 2.4 percent of India s total land area. The population of the State in 2011 is million. This is nearly 3% percent of India s total population. The Northeastern Region of India is the gateway for India to Southeast Asia and shares 98 percent of its regional borders with China, Myanmar, Bhutan and Bangladesh. Assam has a diverse topographical range characterized by features such as floodplains, marshes, beels, scattered hillocks, folded hill ranges and old plateaus. It experiences regular floods and frequent seismic movements. Based on rainfall, terrain and soil characteristics, the State is divided into six agro-climatic zones, viz: North Bank Plain, Upper Brahmaputra Valley, Central Brahmaputra Valley, Lower Brahmaputra Valley, Barak Valley, and Hills zone. The climate of the State of Assam is humid in plains with heavy rainfall, while a pleasant sub-alpine climate prevails in the hills. The average maximum temperature during summer and winter are 30 0 and 16 0 C respectively, while the rainfall ranges from 1152 mm. to 3000 mm. The rainfall in the 1 Data sourced from various publications of North East Council and Government of Assam.

7 Page7 year 2011 was recorded at mm. The agro-climatic divisions mentioned above accentuate the importance of zonal planning for agricultural interventions. Assam, with its rich evergreen forest cover (13,924 km 2, including 5 national parks and 12 wildlife sanctuaries), wetlands and river systems is a part of the Indo- Myanmar region IUCN Global Biodiversity hotspot. This unique biodiversity and the need for its conservation indicate the importance of ecological analysis in any development projects in the State State Administration 2 Assam is divided into twenty seven (27) administrative districts and forty nine (49) subdivisions. The decentralization of the plan process started in Assam to some extent, with desegregations of the plan fund into the State plan scheme and decentralized plan schemes in thirty five (35) identified development sectors. This includes the Agriculture, Livestock, and Dairy development sectors. The Department of Agriculture and Veterinary are among the few departments that have issued executive orders to put the activity mapping 3 into effect. At present, there are 2,489 village Panchayats covering 26,247 villages in Assam. The Panchayat institutions are however, not functioning in the tribal districts of Assam 4 as they are governed under the provision of the sixth schedule of the constitution a self-contained Code for the governance of the tribal areas. 1.3 The Economic Situation 5 More than 97 percent of the State s poor live in rural areas where agriculture and allied activities (livestock, fisheries and forestry) support the majority of the 2 Data sourced from various publications of North East Council and Government of Assam. 3 India Gazette Notification (2007). 4 Karbi Anglong and North Cachar Hills Districts and the four Bodoland Territorial Autonomous Districts (BTAD) of Kokrajhar, Baksa, Chirang and Udalguri 5 Data sourced from various publications of North East Council and Government of Assam.

8 Page8 workforce. Nearly 47 percent of the total State s population of 26.6 million (as of 2001) is productive workforce. The unemployed amongst the youth (between years old) is 5.8 percent in rural areas and 19.5 percent in urban areas. The State s per capita income on the basis of NSDP (Current price) in is estimated to be Rs as against Rs in (Quick estimate). This is against India s Rs for the year As per GOI standard ( ), the percentage of people living below the poverty line in Assam went up to 37.9 per cent in compared with 34.4 per cent in This compares poorly with India s 26 percent. It is to be noted that, the state specific poverty line was calculated on the basis of a monthly per capita income of Rs in rural areas and Rs 871 in urban areas of Assam. The slow growth rate of GDP in the State for each of the last five-plan periods in comparison to India is shown in Table 1. An analysis of the per capita income of the State from 1950 to (Figure.1) compared to India also indicates disproportionate development particularly after As per statistical estimate, the State needs to grow at a rate of percent to catch with India s growth. 6 The reasons for this widening gap are varied in nature. However, many attributed this gap to the long and escalating political disturbances and conflicts after the 1980s. 6 North Eastern council (2008)

9 Page9 Fig 1 Percapita Income Comparison (Assam Vs India) Per capita Income Assam Per capita Income India Source: Government of India statistics. Table 1 GDP Growth rate of Assam against five 5 year plan period Plan Rate of Growth ( Assam ) In percentage Rate of Growth ( India ) In percentage VII ( ) VIII ( ) IX ( ) X ( ) XII ( ) - Target Source: North Eastern Region Vision 2020, North Eastern Council (2008), Govt. of India. Ranked at 26 th out of 35, the Human Development Index of the State is against India s Sectoral distribution of workers (2001) of the State vis-à-vis India as shown in Table 2 indicates predominant workforce in the primary sector. The primary sector is also the largest contributing sector to the State s economy. However, contribution of the primary sector to the Net State Domestic Product (NSDP) has declined from about 47.5 percent in to around 38 percent in recent years. The tertiary sector has shown relatively high rates of growth during this period, while the

10 Page10 secondary sector has exhibited moderate growth. There is a continued and high dependence on the primary sector, in which the growth has averaged just about 2 percent in recent decades, the lowest amongst the three component sectors. The moderate growth of the secondary sector indicates a poor industry base. Table 2 Percent Sectoral Distribution of Workers (2001) Rural Urban Primary Secondary Tertiary Primary Secondary Tertiary Assam India Source: North Eastern Region Vision 2020, North Eastern Council (2008), Govt. of India Infrastructure 7 Growth rate of Infrastructure from to in Assam was recorded at 2 percent as against 8 percent in India. Density of road length (per 100 sq.km, ) in Assam is against India s On the other hand, density of rail routes (route km per 000 sq. km., in 2005) is only 32 against India s This is partly due to the topography, although there has been limited investment since the State s independence. Communication to interior areas or to production sites is a concern for the State. The deficit in power demand and supply (in 2005) in the State is -6.4 percent in comparison to India s -7.4 percent. However, households with electricity connection are only 24.9 percent and per capita consumption of electricity (KWh ) is only The comparative figure for India in this case is 55.9 percent and KWh, respectively. The tele-density (per 100 populations, in 2004) and Internet subscriber (density per lakh of population, in 2003) is also less at 2.44 and in comparison to India s 7.02 and Data sourced from various publications of North East Council and Government of Assam.

11 Page11 The infrastructure and connectivity scenario highlighted above points to processing and rural marketing challenges in the field of agriculture Industry 8 With growth rate of 1 percent, the share of the manufacturing sector in NSDP, in at constant prices is only 7 percent in comparison to India s 16 percent. The small-scale industry is showing a growth rate of 5.93 percent (in 2003). However, registered small-scale industry in the State is only 1.85 percent of India s total (in 2003). The small scale sector provides only 1.72 percent of total employment (in ) in the State. Assam has the highest success ratio (70 percent) in the world with respect to oil exploration. The oil sector with infrastructure for exploration, refining, gas base power generation, etc., is the biggest industry in the State. A large investment project is currently being developed for a gas cracker plant and aromatics complex which is all set to generate a number of downstream industries based on their product mix. Industrialization, which is expected to grow fast, coupled with declining agricultural profitability, will further encourage a shift from agricultural-related jobs to industrial jobs in selected areas. Similarly, future investment in the mining sector of the State will lead to potential changes. There are reserves of over million tons of limestone in the two (2) hill districts The Banking Sector 9 There are 1,279 bank offices of commercial banks in Assam as of June Out of these, three hundred ninety nine (399) are Regional Rural Banks. The average 8 Data sourced from various publications of North East Council and Government of Assam and Confederation of Indian Industries (CII), Assam Chapter. 9 North East Databank (2008), North Eastern Development Finance Corporation Ltd.

12 Page12 population covered per bank branch office (based on the Census Population of 2001) in the State is 21,000 in June This compares poorly with all India average of 14,000. The credit-deposit ratio of commercial banks in the State increased from 32.0 in March 2001 to 43.3 in March However, it is still much lower than the country average of This indicates that much improvement is still needed to further increase the efficiency of banks in the State for credit delivery to farmers in rural areas. (Detail of credit delivery to farmers is included under section Analysis of Agriculture Sector) 1.7. The Social Conditions 10 Culture There are multifarious ethnic groups within the State with diverse religions, rich customs and wide spectrum of music, drama, weaving, craft, and dance traditions. Social exclusion and religious intolerance is less pronounced in Assam than in other parts of India. The status of women is relatively high, and the institution of untouchability was never entrenched. As far as work-culture is concerned, the State has been stigmatized as the land of lahe-lahe (slow-paced). Many have the perception that Assamese people are easy-going and gregarious, and apparently do not inculcate any ambitions to outshine others. However, this perception is changing. Nearly 95 percent of the population in Assam is non-vegetarian. However, per capita consumption of milk and milk products are low amongst the tribes 11 and moderate amongst the other local inhabitants. 10 Data sourced from various publications of North East Council and Government of Assam 11 There are 16 Scheduled Castes and 23 Scheduled Tribes constituting 7.40 and per cent respectively of the State s population

13 Page13 Population, Human Resources and Employment The population of the State is 26.6 million (2.6 percent of total population in India) with a density of 340 persons per sq. km. (in 2001). The average exponential population growth rate is 1.73 percent per annum. The population growth between1991 to 2001 was percent against India s percent. The change in urban population in 2001 over 1991 was 1.6 percent against India s 2.1 percent. As per the projection made by NEC, GOI the population of Assam will be 36.9 million by 2020 with corresponding increase in density to 471 persons per sq. km. The increase in population will put pressure on use of land for agriculture and livestock. Productive workforce in the State constitutes around 47 percent of the total population in the year As per data from the Agriculture Department, the government of Assam estimates (in 2007), that there are 3.7 million cultivators and 1.2 million agricultural laborers. Majority of them are also associated with livestock production. The unemployment in youths (between the ages years old) as per 2005 statistics was 5.8 percent and 19.5 percent respectively for rural and urban areas of the State. This compares poorly with India in the same year with the percentage of the unemployed under the same segment and area, is at 3.3 percent and 7.6 percent respectively. Labor-force participation rate of the State during the same year was 36.2 percent against India s 38.2 percent. Average daily wages for rural casual workers engaged in public works in the same reference year was Rs.70 against India s Rs This indicates a relatively high cost of casual labor in the State than in India. Health The infant mortality rate, birth rate, and death rate per million populations (in 2008) in Assam are 64, 23.9, and 8.6 respectively. This is against India s 53, 22.8, and

14 Page for the referred indicators in the same year. This can be correlated with the fact that women availing of prenatal care and institutional deliveries in Assam are only 23 percent in the year 2006 against India s achievement of 41 percent in the same year. The sex-ratio (female per 1000 male, in 2001) compares well with India at 935 against India s 933. While 40 percent of children under age 3 are underweight, only 32 percent of the children within the age group of months are receiving full immunization in the State. The health infrastructure is also inadequate with 0.6 hospital beds per 1000 population. The poor health status can be linked to the fact that, only 58.8 percent people (in 2001) in the State have access to safe drinking water. This compares poorly with India s 77.9 percent. On the other hand, 64.6 percent of the populations have access to toilet facilities in the State against India s 36.4 percent. The relative poor health care status mentioned above emphasizes the vulnerability of the poor who are engaged in small-holder agriculture. Sectoral partnership at project level to address the health-related vulnerability will strengthen the success rates of agriculture-linked interventions. Education As per 2001 census, the literacy rate of the State is percent against India s percent. During 2003, the enrolment (6-11 years of age) in schools for the State is at 88.2 percent against India s 98.2 percent. High school drop-out rate (for classes I-X) during the same year was 74.9 percent against India s 62.6 percent. Few other striking features are the gross enrolment ratio of 6.94 for higher education (18-24 years of age, in 2005) in the State which is less than India s Similarly, percent enrolment in science stream ( as percent of total enrolment) in the State is only 12 percent

15 Page15 against India s 20 percent. This indicates major challenge for the State to achieve universal enrolment at the primary level and to appreciably increase enrolment in secondary and tertiary levels of education with emphasis on technical education and improvement in drop out rate. For higher technical and professional education there are 5 universities, 9 institutes of national importance 12, 7 medical, 3 engineering and 2 each of agriculture and veterinary colleges in the State. Not much information is available on entrepreneurship including that of creative cultural sectors which seems to be promising in the State. The analysis indicates that increased investment on human capital will be required for enhanced productivity of the workforce engaged in economic activities. This assumes importance as agriculture, the prime economic activity in the state, is becoming more knowledge-intensive day by day. There are infrastructures in place for training professionals in the field of agriculture and livestock. However, there is room for increased investment in technical education, including that of supervisory and vocational training for agriculture-linked manufacturing or service-based enterprises Ecology 13 The State is known for its bio-diversity and natural resources including wildlife. As per the latest survey of Forest Survey of India over 35 percent of the geographical area in the State is under forest. This forest cover is more than what India as such aspires to achieve at the end of current 11 th Plan (2012). There are 367 species of timber and 52 species of Bamboo. The wild life resources include 187 species of reptiles, 958 species 12 They are institutions either one of its kind or acclaimed nationally as center of excellence 13 Data sourced from various publications of North East Council and Government of Assam

16 Page16 of birds, 230 mammals belonging to 175 species (including one horned rhinoceros). There are 5 national parks and 18 wildlife sanctuaries in the State. The analysis indicates that tourism will be an important driver of change in the State. It is possible that the agriculture sector can also benefit from these changes more particularly through investment in the field of agro-tourism The Divide and Drivers The review of statistics made in the above paragraphs indicates a wide divide between Assam and India. A well documented vision, and systemic effort aimed at reform and building of institutions is a pre-requisite to overcome the divide. In summary, the analysis of Assam s socio economic situation indicates following drivers of change: 1. Participatory Planning and Governance 2. Investment e.g. Oil Sector & Infrastructure 3. Agricultural productivity and Non-farm employment 4. Human development 5. Peace and Political inclusion 6. Entrepreneurship and Regional Trade e.g. Agro-processing and tourism 7. Sustainable Natural Resource Management e.g. Oil, mining & water resources Priorities of Government of Assam: The Government of Assam has given priority to the following areas: 1. Conflict management and political inclusion for long-term peace. 2. Infrastructure development, harnessing of resources and power sector reforms. 3. Human development through investment in health and education with special attention to women.

17 Page17 4. Participatory governance and administrative reforms. 5. Commercialization of Agriculture, Agro-food processing with private sector participation. 6. Vocational training and Farm and Non-farm employment creation in rural areas Government funding norms for development programs: Assam, along with all the other States of India s Northeastern Region, are Special Category States whose development plans are centrally financed on the basis of 90 percent Grant and 10 percent Loan. Further, the Special Category States are allowed to use up to 20 percent of the Central Assistance for non-plan expenditure. As per an initiative in 1996, at least 10 percent of the Budget(s) of the Central Ministries/Departments in India is earmarked for the development of Northeastern States. The unused amount goes to a non-lapsable Central Pool of Resources for the funding of specific development projects in the region. This fund is managed by a separate ministry called the Ministry for Development of North Eastern Region (DoNER). The Ministry released an estimated Rs million to Northeastern States for development projects during under the above mentioned non-lapsable Central Pool of Resources Assam Tribune dated April

18 Page18 2. Analysis of Agriculture Sector in Assam 2.1. Importance of Agriculture in Assam The average contribution of Agriculture to State GDP at constant prices during the period of the 10 th five-year plan ( ) was percent. The sector plays an important role in the economy, providing employment to about 69 percent of the total work force. It is estimated that there are 3.7 million cultivators and 1.2 million agricultural laborers. Number of farm family is around 2.75 million. Fig 2 Percent Contribution of Agriculture to State GDP - Assam Percent Contribution of Agriculture to State GDP at Constant Prices th Plan 9th Plan 10th Plan 11th Plan ( Target ) 2.2. Farming and Productivity in Assam The predominant aspect of Assam s agriculture is the monsoon-based rice production systems in Brahmaputra and Barak Valleys, accounting for about 70 percent of the net cropped area of million hectares. The irrigation potential is created for percent of gross cropped area. As per estimate (2011) the area under assured

19 Page19 irrigation is 28% of net cropped area. This has resulted into cropping intensity of 146 percent. (Detail district wise area under assured irrigation are shown in annexure-ii) More than 60 percent of the farmers in the State are classified as marginal (less than 1 hectare) and another 21 percent as small (1 to 2 hectares). The average per capita land holding (around 1.11 ha.) has been the greatest constraint. The limited holding constrains most of the farmers in investing in capital works and crop or livestock inputs. To address the economic vulnerability issues related to small landholdings, the government promoted Field Management Committees (FMCs) among farmers. Availability of farm power is only 0.70 HP per ha, which has become one of the major constraints for double or multiple cropping. This has been acutely felt after the expansion of the area under irrigation through large-scale installation of shallow tubewells. Consumption of chemical fertilizer in the State is Kg. per hectare in Currently, 65 percent of the total rice area is covered by high yielding varieties (HYV). 15 Table 3 Assam Agriculture (2011) General Profile Net Cropped Area lakh hectare (36 p.c. of Geographical Area) Cropping Intensity 146 p.c. Area covered by Horticultural Crops 5.65 lakh hectares (15% of Gross Cropped Area) 15 Department of Agriculture (2011 )

20 Page20 Rice area covered by 65% of total Rice area. HYV Per capita land holding 1.11 hectare (as per Agriculture Census) Availability of Farm 0.93 HP per hectare Power Irrigation Created Potential lakh Ha Area under Assured Irrigation 28 % of Net Cropped Area ( 7.9 lakh hectare ) Seed Replacement Rate 47% of Paddy Consumption Chemical Fertilizer of Kg. per hectare Source: Department of Agriculture, Government of Assam Amongst the plantation crops, Assam is known for its tea. There are 228 large tea gardens (above 400 ha. In extent and mostly owned by corporate houses) in the State. The total area under tea cultivation in Assam accounts for more than half of the country s total area under tea. Commercial horticulture, floriculture and other high value crops such as medicinal and aromatic plants have recently been popularized in the State. As per recent statistics (in 2008) total area covered by horticultural crops in the State is 0.54 million ha, or 13.6 percent of gross cropped area in the State Department of Agriculture presentation ( March 2009 )

21 Page21 The agricultural production in Assam includes cereals, fibers, oilseeds and pulses besides horticultural (e.g., citrus fruits, pineapples, areca nuts), plantation (e.g., tea, rubber, bamboo), and other crops (e.g., spices, aromatic, medicinal plants). Figure 3 shows the productivity of various agricultural produce in the State. Fig 3 Average yield (Kg / ha) of various crops in Assam in comparison to India Spices Vegetables Fruits Oil Seeds Food Grain Pulses Wheat Rice India Assam Source: Department of Agriculture, Government of Assam (Reference year 2007) The low general agricultural productivity rate can be linked to predominantly acidic soil, soil erosion, short sunshine hours, excessive humidity and recurrent floods in the State. Limited irrigation facilities (30.36 percent of gross cropped area as of 2007), poor access to appropriate technology, credit and inadequate market linkages and similar factors makes the intensification of production and diversification from rice difficult for poor farmers. Climate change and its effects on agriculture are evident in the State Recent Government Interventions in Agriculture In the year 1995, at a time when the agricultural sector in Assam was going through a stagnant if not declining period, the World Bank-IDA funded Assam Rural Infrastructure and Agricultural Services Project (ARIASP) in the amount equivalent to

22 Page22 US$126 million. The project focused on three (3) components, viz: poverty alleviation, institutional development, and infrastructure. It was completed in the year 2004 with a satisfactory outcome as per standard rating. The Economic Rate of Return (ERR) of the project as calculated at closing was 24 percent. 17 While the ARIASP expanded irrigation and road infrastructure and small farmers access to mechanization, it still left unfinished a substantial development agenda in rural Assam. As a follow up, in the year 2004, IDA approved another project, in the amount equivalent to US$154 million the Assam Agricultural Competitiveness Project (AACP) with the following components, viz: (i) investment grant schemes to address the constraint of lack of capital in farm and rural communities for productivity enhancing investments, (ii) agricultural services and market chain development, to address the constraint of inadequate market-linked technology transfer, absence of basic producer organizations with links to market and low productivity of livestock resources; and (iii) infrastructure development, to address the constraint of poor rural road network and inadequate market infrastructure. The AACP project which was scheduled for closing on 31st March 2010 has been extended and presently continuing. Government of Assam is all set to complete a negotiation process with the World Bank for additional financing of 75 million USD. Other than the World Bank-aided initiatives mentioned above, the government of Assam through its Department of Agriculture and allied agencies, are actively implementing a number of programs funded by the State as well as the Government of India. Some of the important programs include the Seed Village Program for production of certified seeds; the National Program on organic farming; the National Food Security 17 The World Bank Implementation Completion Report (2004)

23 Page23 Mission on Rice; the Macro Management Mode of Agriculture; and the Technology Mission for Integrated Development of Horticulture. In an effort to streamline agricultural service delivery, the Department is implementing an agricultural extension reform program which encourages the formation of a frontline delivery system called ATMA 18 in association with private organizations. Another important initiative for farmer-to-farmer extension is the incentive to select a lead farmer in every village to act as Kisan Bandhu (Friend of Farmer). During 11 th plan years till date, the State under various scheme provided assistance to farmers for installation of 2, numbers of pump sets, and procurement of 4240 numbers of tractors, 12,939 numbers of Power tiller and 912 numbers of auto vans. Under the ongoing program Mission Double cropping the State plans to cover 5 lakh hectare area. The State s Department of Rural Development is also implementing a number of national level self-employment generating programs. Most of these programs are agriculture and livestock-related and aimed at augmenting group entrepreneurship popularly known as SHG (Self-Help Group) movement. National level banking institutions like NABARD also promote Self-Help Groups and facilitate credit linkages to agricultural farmers forming such groups. Rashtriya Krishi Vikash Yojona (RKVY) was started in Assam w.e.f The review of 130 projects supported under RKVY till end of XII plan period indicates following priorities: 18 Agriculture Technology Management Agency: Autonomous organization at district level to serve as a focal point for integrating research and extension activities in general and refinement and dissemination of location specific technologies in particular.

24 Page24 Farm mechanization Ground & surface water irrigation facility Seed Production Plant nutrition and soil health management Post harvest handling of horticultural produces Technology demonstration Market support Mechanism Extension reforms Area Expansion in Fisheries Infrastructure and enterprise development in livestock. The department is making all efforts for water harvesting, water use efficiency, agronomic management and diversification into low water intake crops. There is an increased realization amongst policy makers regarding the need to effect changes in a number of traditional agro-practices to cope with climatic aberrations. The Department of Agriculture is currently planning to focus on programs aimed at discouraging mono-cropping of rice, burning of crop residue, introduction of soil-bonding grasses, bushes and herbs using conservation tillage, and by augmenting the cultivation of perennial crops like forages for better soil health. The Department is already promoting environmentfriendly organic cultivation of rice (such as Joha- scented rice), oranges, and lemons.

25 Page Performance of the Agriculture Sector: There has been a steady improvement in agricultural growth and productivity in the State as shown in Figure 3&4. Fig 4 Agricultural Growth in Assam Source: Department of Agriculture, Government of Assam An impact analysis of the Technology Mission for Integrated Development of Horticulture (TMIDH) conducted in the State during the years indicated a coverage of 54,000 farmers between 2001 and 2007 leading to an increase in production and productivity of fruit crops at 8.4 and 2.3 percent; spice crops at 16.6 and 7.3 percent and vegetable crops 58.5 and 30.2 percent, respectively. During year , the total horticultural production was recorded at lakh MT against production of lakh MT in the year The productivity during the same period also increased from kg per ha to kg per ha. As of January 2010, there are 19 cold storages, 25 developed rural markets and 31 food-processing centers functioning in the State.

26 Page26 Fig 5 Productivity Improvements of Major Agricultural Crops (Kg / Ha) Total Pulses Total Oil Seed Winter Rice Autumn Rice FY FY Data Source: Department of Agriculture, Government of Assam Detail Area, Production and productivity food grain, pulses & oilseed, fiber crops; during the current year (FY 10-11) Vis a Vis has been shown in the table below. District wise break up of production figures are being included in the annexure for reference. Table 4 Area, Production and Productivity of FY in comparison to FY Crop For the Year For the year Area ( in Productivity Production ( Area Productivity Production Lakh Ha ) ( Kg / Ha ) in Lakh MT ) ( in Lakh Ha ) ( Kg/ Ha ) in Lakh MT Autumn Rice Winter Rice Total Oil Seed Total Pulses Maize Sugarcane Jute Source: Department of Agriculture, Government of Assam

27 Page27 The State is making much improvement in rice production and productivity as shown in fig 6 & 7. Fig 6 Trend of Rice Production in Lakh MT Rice Production in Lakh MT Source: Department of Agriculture (2011), Government of Assam Fig 7 Rice Productivity Trend (Narrowing the gap in last 5 years) Rice Productivity ( Kg per Ha )-Assam 1000 Rice Productivity ( Kg / Ha ) India Average Source: Department of Agriculture (2011), Government of Assam.

28 Page28 It is to be noted that, increase in production and productivity of paddy is greatly related to increase in Seed Replacement Rate (SRR) which is 47% in the year against 10.7 % in the year The consumption of fertilizers (Kg per hectare) also increased from 52.27% in the year to 67.09% in the year The ambitious endeavor to provide assured irrigation to farmer through subsidized Shallow Tube Well and pump sets (taken as a flagship project under RKVY and also under other schemes) paved the way for increase in multiple cropping. The figure 8 shows number and increasing trend of pump set installed from onwards. Fig 8 Number and Trend of Pump set Installed for Assured Irrigation (up to 15th March'2012) Pumpsets Installed Source: Office of Agriculture Production Commissioner, Government of Assam 2.5. Institutions There are numerous government institutions within the agriculture sector. This includes five line departments, two supporting departments; one registered society (to implement World Bank project), two public sector corporations, eight commodity-based agencies or boards, twenty extension centers (funded directly by the Indian Council of

29 Page29 Agricultural Research), two export and marketing organizations, etc. Coordinating and making these institutions work on a synergistic manner is a challenge for the government. It is to be noted that Asian Development Bank (ADB) is currently funding Assam Governance and Public Resources Management Program 19. One of the objectives of the program is to assist the government in restructuring public sector enterprises. A failure to bring in institutional renovation and leadership development can be a threat to the sector as this will jeopardize delivery of support system-linked services. The robust network of Institutions in Assam s agriculture sector alone is a result of planned government investment during last sixty years. However, it is interesting to note that the North Eastern Regional Vision 2020 of Government of India (released in the year 2008) highlighted limited local capacity in the region as such to plan and implement programs Credit Delivery The following data as on 29 th February 2012 indicates the status of credit delivery: Table 5 Farm credit delivery situation (Feb 2012) No. of KCCs issued lakh No. of valid KCCs 7.00 lakh (approx.) Percentage of achievement 25% Crop loan provided Rs crore Credit per hectare Rs

30 Page30 Source: Office of Agriculture Production Commissioner, Assam (Feb 2012) The credit per hectare in showed a quantum jump from Rs.2626 in However, it is still much below the national average of Rs per hectare. It is to be noted that, the State has raised interest subsidy on crop loan to 3% and enhanced the loan limit for interest subvention from Rs.20, 000 to Rs.35000/-. 4. The Livestock Sector 4.1. Importance Much like other parts of India, livestock is the integral part of the mixed-farming system that characterizes agriculture in Assam. Besides contributing to food and crop production, livestock and poultry are as important as savings. For many poor households, livestock is a daily source of earning and is an insurance against adversity. Animal traction is still significant in the State because of the increasing miniaturization of landholdings and high fuel cost that limits use of machinery. Tractor density per hectare of cultivated area is 1/6 the India average. Being a State with limited benefits of green revolution technologies and climatic uncertainties, livestock has the potential to contribute to farm diversification and intensification. Livestock products are integral parts of local diet as more than 95 percent of the population is non-vegetarian Production System Livestock production in Assam is characterized by rural smallholder production using indigenous cattle, buffalo, pigs, goats and chicken. There are pockets of nomadic

31 Page31 systems of rearing, mostly in the fringes of the forests. In recent years, more specialized and commercially intensive production areas have emerged where farmers are using improved livestock and commercial poultry strains. Livestock in the State is largely fed on crop residues, food waste, while high-producing animals are supplemented with concentrated grain-based feed. Unlike in other parts of India where cooperative farming (such as in Amul Dairy), has revolutionized livestock sector, investment in cooperative farming in the State has remained largely unsuccessful. Livestock production in the State includes milk, meat (mostly chicken, pork and cheavon), and eggs. The average productivity is limited. For example, productivity of crossbred cattle in the State is 3.68 liters of milk per animal per day, compared to India s average of 6.84 liters per animal, per day Livestock Population According to an integrated sample survey in , the cattle population constitutes the largest group of livestock at 8.25 million (7.8 million indigenous and 0.43 million crossbreed) followed by goats at 2.77 million, pigs at 1.5 million and buffalo at million. In the poultry population, fowl is at 10 million and duck is at 3.18 million. A government sample survey in conducted 1997 indicates that the livestock population is showing a negative growth-trend for indigenous cattle, buffalo and fowl Production The production of milk, eggs and meat is 824 million liters, 499 million and thousand tons, respectively in the year The per capita availability of milk, egg

32 Page32 and meat is very negligible and estimated at 69gm (77ml) per day, 17 units per annum, and 930 gram per annum, respectively. This per capita availability compares very poorly with the Indian Council of Medical Research s (ICMR) recommendation of 208 grams of milk per head, per day; 180 eggs per head, per annum; 10.8 kgs of meat per head, per annum. The milk production of indigenous cattle, buffalo and goat is estimated at liters, liters and liters per day, respectively. A short study sponsored by UNCTAD-India in the year 2007, covering the 100-kilometer radius in Guwahati, the capital city of Assam, indicated an overall approximate cost of production of milk at Rs per liter (equivalent to 28US$ per 100 kg). This compares poorly with the cost of production of milk in other parts of India which can be presumed at Rs.9.20 per liter (equivalent to 20US$ per 100 kg.) The annual egg production of indigenous fowl has been estimated at 101 eggs per layer, and at 183 eggs for the improved layer. The annual yield rate of local duck and improved duck is estimated at 107 eggs and 183 eggs, respectively. The State has been successful in promoting improved layer and duck-rearing in rural backyards. However, there is a limited attempt for aggregation and organized niche-marketing of eggs, produced by indigenous breeds of poultry. Growth of commercial poultry sector (mostly for broiler chicken production) at Assam can largely be attributed to the private sector entrepreneurial initiatives and service delivery by input supplying companies. Total commercial broiler chicken input market in the State is estimated at Rs million per month (2009), a major portion of which is imported from outside the State. There are about 36 private hatcheries in

33 Page33 Assam that collectively produce around 3 million day-old chicks (DOC) in a month. Approximately 14 percent of the total commercial broiler chicken market of Assam is under the control of commercial integrators. This share is increasing in the post bird flu (2008) scenario of the State. There are about 18 brands of feed in the market, of which only 4 brands are produced by local manufacturers, while approximately 15 to 20 leading medicine and feed supplement companies operate in Assam 20. Import dependency of the livestock input market (e.g., feeds, medicines, supplements), make local production vulnerable to changes outside the State. A majority of poor farmers is price-sensitive, and when coupled with their limited knowledge regarding selection and use of inputs, it is possible for unscrupulous traders to market inferior quality inputs. Pig meat (pork) contributes 29 percent of the total meat production. This is followed by goat meat and poultry meat which is 23 percent and 21 percent of total meat production, respectively. Average price of pork, mutton and chicken during the year was recorded at Rs.120, Rs.175 and Rs.80 per kilo of meat, respectively Consumption and Demand of Livestock Products According to a 2006 ILRI study, average per capita consumption of liquid milk a major livestock product in Assam from survey data in nine (9) districts of Assam is about 44 liters (which is 120 ml. per day, per person) and 37 liters (which is 101 ml per day, per person) per year in urban and rural areas, respectively. The same study also reported that on the average, surveyed urban households spent 152 rupees (equivalent 20 FARMER / NEDFi (2009 ) Input sector consist of Feed, Hatching Egg, Day Old Chick, Medicine and supplements etc

34 Page34 to US$3) per week on home consumption of milk and dairy products compared to 73 rupees (equivalent to US$1.5), by rural households. With growth, primarily urban areas of the State are witnessing large imports of UHT packaged milk and milk powder aside from other dairy products. ILRI s sub-sector appraisal in the capital district of Kamrup, Assam in 2006 indicated an average 33 percent price increase in unprocessed livestock products. As per a NEDFi sponsored study conducted by Tezpur University in Assam in the year 2000, urban demand for eggs is 9,545,926 per week or 496 million eggs per annum (per capita of 124 eggs per annum). Considering per capita availability of 17 eggs per annum as mentioned above, it is evident that most of this demand is met with inter-state import. More than 90 percent of the population in Assam is non-vegetarian. Northeastern Council a GOI body representing States of Northeast India comprising of 8 States, with Assam having the highest population estimates that the Northeast region of India is deficient by nearly 50 percent in milk and 87 percent in eggs. It also projects that the requirements of these items will rise to 2.5 percent annually by 2020 (NE Vision-2020, GOI). 4.6 Analysis of Response, Performance and Challenges: To meet the demand, the State is implementing a three-pronged strategy, viz. a) genetic improvement through artificial insemination; b) ensuring availability of resources, such as farm inputs, services, credit, etc., and c) augmentation of group entrepreneurship (Self-Help Groups). Attempts are also being made to revive farmercentric institutions like cooperatives as seen in the case of other Indian States.

35 Page35 Performance in the sector is mixed up to now. Production trends are upward in the case of milk and meat but volume increase is nominal. When compared to population growth (considering the 11th Plan , annual growth rate of 1.28 percent) the production growth indicates that per capita availability must have remained almost constant for milk. This has probably increased for meat but it is falling in the case of eggs. Figures 9 to 11 shows production of milk, meat, and eggs vis-à-vis population growth. Fig 9 Comparison of Milk Production with Human Population Growth Human Population Growth Trend Milk Production Growth trend Source: Analysis based on data of Department of Animal Husbandry and Veterinary, GoA and NEC Fig 10 Comparison of Meat Production with Human Population Growth Human Population Growth Trend Meat Production Growth Trend Source: Analysis based on data of Department of Animal Husbandry and Veterinary, GoA and NEC

36 Page36 Fig 11 Comparison of Egg Production with Human Population Growth Human Population Growth Trend Egg Production Growth Trend Source: Analysis based on data of Department of Animal Husbandry and Veterinary, GoA and NEC The crossbred cattle population in the State is only 4.3 percent of the total cattle population ( ). Figure 12 shows the performance of cross-breeding program. Fig 12 Cross breeding program in cattle Percentage of cross bred cattle Percentage increase / decrease in indegenious cattle Population Source: Census reports, Department of Animal Husbandry and Veterinary, Government of Assam. An interesting observation is the fall in the percentage of the cross-bred cattle, in the years between 2003 and 2007 a period when artificial insemination programs were