Agr 3 chp

Module – 2 : The Agricultural Sector Institutional Structure & land reforms in India 2) Technological change 3) Agricultural finance 4) Agricultural Marketing 5) Agricultural Pricing 6) National Agricultural Policy, 2000

INSTITUTIONAL STRUCTURE & LAND REFORMS Institutional constraints Land Reforms: Objectives Reforms Critical evaluation MODULE 2: CHP 1

Institutional constrains Defective agrarian structure small & fragmented land Zamindari mahalwari ryotwari Low income Low productivity No incentive Uncertainty Exploitation Poverty inequality Agricultural statistics 2004 In 1994-95, Avg.size of land holding 1.42 hec 61.6% total land holdings uneconomical. Reasons : population pressure, law of inheritance, Nuclear family, decline of handicraft industry, debts Effects : non mechanization, low productivity, poverty, further debts

Land reforms Objectives Equal distribution of land Removal of exploitation Land to tiller Equality of status & opportunities Economic size of land holding Create healthy work culture Increase productivity Generate rural unemployment Optimum use of land Developing co-operative spirit Regulating rent

LAND REFORM MEASURES Abolition of intermediaries zamindari abolition by paying compensation , 20 million cutivators brought into direct contact with state It led to…… End of absentee land-lordism Ownership of land to actual cultivator Reduction of exploitation Incentive to work hard 2) Tenancy Reforms regulation of rent 1/4 th or 1/5 th . Security of tenure land for personal cultivation Ownership rights for tenants 3) Reorganization of Agriculture ceiling on land holding undistributed, 10 lakh acer In litigation, unsuitable for Cultivation,records manipulation Consolidation of land holding Fertile land to rich, failed voluntary consolidation Land records Co-operative farming Lack of motivation, Corrupt administration, Few coop.s by poor farmers, Lack of team spirit, Lack of trust on co-ops., Emotional attachment to land, Political interference . Limitations: land for personal use Ownership rights to intermediaries Huge compensation Occupancy tenants Tenants at will Sub tenants Limitations: Rent not known No records of tenancy

LIMITATIONS: zamindari abolition only on paper farmers not aware about rent limit fixed Lack of records dominance of landlords voluntary surrender of land Low grade land illigal transactions QUESTIONS: Write a note on ‘land reforms (april 2009) (april 2008) Describe the reasons for poor implementation of land reforms in Indian( nov 05)

Chp. 2 Technological Change in Agriculture The New Agricultural Strategy ( Green Revolution) 1966 : New Technology was introduced which was a package of measures offered to Indian Farmers To increase production and productivity and make India self sufficient and self reliant in food grain production Intensive Agricultural District Programme (IADP) in 1960-61 in 7 districts Extension in 1966 – Measures undertaken under IADP are 1) use of HYV seeds 2) better water management 3) use of fertilisers & pesticides 4) educating farmers 5) providing better credit & marketing 6) better irrigation 7) better mechnisation

Impact of Green Revolution Achievements Foodgrain production Wheat: 11 to 76 M. T.(60-61 to 99-00) Rice: 35 to 90 M.T.(60-61 to 99-00) Foodgrains: 212 to 217.3 million T. during 01-02 to 06-07 2) More productivity Foodgrains: 783 to 1626 kgs per hectare (67-68 to 00-01) 3) Changes in Agricultural Practices 4)Employment Generation 5) Linkage with Industry 6) Changes in attitude of farmers

Limitations LIMITED COVERAGE INSIGNIFICANT INCREASE IN PRODUCTION & PRODUCTIVITY CAPITALIST FARMING INCREAED INEQUALITY UNEMPLOYMENT TECHNOLOGICAL CHANGES IN AGRICULTURE BASIC INPUTS: Cultivation – Japanese method of rice cultivation. Seeds – HYV Seeds. Institutional framework has been developed to generate Quality seeds through central & state Government participation. Indian Council of Agricultural Research (ICAR) State Agricultural Universities National Seed Corporation (NSC) 15 State Seeds Corporations (SSCs) State Farms Corporation of India (SFCI) & seed companies

Irrigation – major & minor dams, borewells, pumpsets, drip irrigation. In India about 60% of foodgrains production comes from 39% of irrigated area and 40% of remaining production comes from 61% of rainfed area. During 50 years of independence, the Government had spent about 231,400/- crores ( at 1996-97) prices) on major ,medium and minor irrigation works, leading to growth in The country’s irrigation potential from 23 million hectare (1950-51) to 89 million heatare (1996-97) Pest Control – pest control methods have been developed to Integrated Pest Management (IPM). Efffective IPM packages are designed & developed for rice, cotton, sugarcane, pulses, oilseeds etc.

FERTILIZERS AND MANURES Production, imports & consumption of chemical fertilizers in India Economic survey 2008-09 YEAR PRODUCTION 000 TONNES IMPORTS 000 TONNES CONSUMPTION 000 TONNES CONSUMPTION PER HECTARE OF CROPPED AREA (KG) 1951-52 39 52 70 0.5 1990-91 11,860 2,760 12,550 76.8 2000 -01 14,750 5,253 16,700 90.1 2006-07 16,096 6,058 21,651 112.2

Agricultural Engineering - Indian Council of Agriculture Research (ICAR) has designed a variety of marketable implements & machines for field operations Technology Mission on Oilseeds, pulses & maize - launched by the Central Government in 1986 and was extended to pulses, oil palm & maize in 1991, 1992 & 1996 Various schemes were implemented. Oilseeds Production Programme (OPP) National Pulses Development Project (NPDP) Accelerated Maize Development Programme (AMDP) Oil Palm Development Programme ( OPDP) Extension Services – for farmers training Kisan Call Centre – introduced in 2004. 144 Call Centre Agents use 21 local dialects toll free number 1551 & 1800-180-1551 from 6am to 10 pm for 7 days Department of Agriculture & Cooperation has developed a data structure Kisan Knowledge Management System (KKMS) to help KCC provide correct answers I.T. use of IT for information & also to update land ownership records

QUESTIONS: WRITE A NOTE ON GREEN REVOLUTION EXPLAIN THE NEW AGRARIAN TECHNOLOGY

AGRICULTURAL PRICING Need for agricultural price policy…..??? To provide remunerative prices To provide incentives To promote capital formation To have better terms of trade between agri & non-agri sector. To reduce income inequality To prevent inbuilt fluctuations ADMINISTERED PRICES: YEARLY BASIS Recommendation of Jha committee 1964-65 Agricultural Price Commission – 1965 recently called as – COMMISSION FOR AGRICULTURAL COSTS & PRICES ( CACP)

FACTORS CONSIDERED WHILE DETERMINING PRICES BY CACP: cost of production Risk factors Effect on industrial cost Effect on cost of living Effect on general price level International price situation Changes in agricultural input prices Market prices Demand & supply Trends in the past price levels

Floor price/24 crops Jute & sugarcane ANNOUNCEMENT OF ADMINISTERED PRICES Generally Lower than Market price & higher than M.S.P. Lower than Procurement Prices. ( in 2009-10, issue price per quintal for wheat was 610)- & for rice,795/- for APL for BPL, 415/- for wheat & 565/- for rice; for AAY, it was 300/- per quintal)

M.S.P.: ANNOUNCED EACH YEAR BY CACP . CONSIDERS MANY FACTORS WITH SPECIAL EMPHASIS ON COST FACTOR; IMPORTANT COST CONCEPTS USED ARE C 2 & C3 costs : C2 = all actual expenses in cash and kind incurred in production by actual owner + rent paid for leased land + imputed value of family labor + interest on value of owned capital assets + rental value of owned land ( net of land revenue). C3 = C2 + 10% of cost to account for managerial remuneration to the farmer . ADMINISTERED PRICES 1. MINIMUM SUPPORT PRICES (M.S.P.)

MINIMUM SUPPORT PRICES 2009-10 Rs. PER QUINTAL Source: Department of Agriculture & Cooperation COMMODITY M.S.P. 2010 -11 CROP YEAR COMMODITY M.S..P. 2009-10 CROP YEEAR KHARIF CROP RABI CROP paddy (common) 950 + 60 per quintal bonus Wheat 1,100 Paddy ( grade A) 980 + 50/- per quintal bonus Masur 1,870 Cotton ( F-414/H-777/J-34) 2,500 Other crop Groundnut in shell 2,100 sugarcane 129.84

IMPLEMENTATION OF ADMINISTERED PRICES FOOD CORPORATION OF INDIA (FCI) FOR FOODGRAINS NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION (NAFED) FOR, CEREALS, PULSES & OILSEEDS COTTON & JUTE CORPORATIONS, TOBACCO BOARD ETC. AGENCIES: NATIONAL CROP FORECASTING CENTRE ( NCFC): IN JAN 1999, TO WATCH PRICES ON PRIMARY GOODS &PUT AN ADVANCED WARNING SIGNAL HIGH POWEREDPRICE MONITORING BOARD : 1999, MONITORING ESSENTIAL COMMODITY PRICES & ANTICIPATING THE NEED FOR GOVERNMENT INTERVENTION TARGETTED PUBLIC DISTRIBUTION SYSTEM : 5 LAKH FPS BUFFER STOCKS: BY FCI & NAFED OF ESSENTIAL COMMODITIES. WAREHOUSING REGULATED MARKETS CREDIT FACILITY

LIMITATIONS DIFFICULTY IN DECIDING ‘FAIR’ PRICES NO INTEGRATION BETWEEN DIFFERENT CRITERIA BENEFIT TO LARGE FARMERS MOUNTING DEFICIT EXCESSIVE BUFFER STOCKS SEASONAL & SHARP RISE IN VEGETABLE PRICES FLAWS IN PDS CONTRIBUTION TO INFLATIONARY TREND NOT ALL COMMODITIES COVERED

Agr 3 chp

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Agr 3 chp