Agriculture and Land Development

Agriculture and Land Development

Agriculture and Food Management

• The agriculture sector, which is the largest employer of workforce, accounted for a sizeable 18.8 % (2021- 22) in Gross Value Added (GVA) of the country registering a growth of 3.6 % in 2020-21 and 3.9 % in 2021-22.
• The net receipts from crop production alone have increased by 22.6 % as compared to the previous SAS Report of 2014 although there is a visible diversification in the sources of income of the farmers.
• Allied sectors including animal husbandry, dairying and fishing are steadily emerging to be high growth sectors. The livestock sector has grown at a CAGR of 8.15% over the last five years ending 2019-20. As revealed by the latest Situation Assessment Survey (SAS), the sector has been a stable source of income across groups of agricultural households accounting for about 15 % of their average monthly income.
• The Government has placed focus on the food processing sector, which is not only a major market of agriculture produce but is also a significant employer of the surplus workforce engaged in agriculture. Government therefore facilitates food processing through various measures of infrastructure development, subsidised transportation and support for formalization of micro food enterprises.
• The share of the agriculture & allied sector in total GVA, however, improved to 20.2 % in the year 2020-21 and 18.8% in 2021-22. [Source: Economic Survey 2021-22]

Situation Assessment Survey (SAS)

• National Statistical Office (NSO) in its 77th round of survey, conducted during the period 1st January 2019 to 31st December 2019, carried out a survey on "Land and Livestock Holdings of Households and Situation Assessment of Agricultural Households" in the rural areas of India. The Report was released in September, 2021. The last SAS was published in 2014.
• The SAS reports, apart from various other socioeconomic aspects of agricultural households, they also reveal insights on their income and its sources. The SAS, 2021 reveals that the average monthly income per agricultural household, as per paid out expenses approaches, works out to be Rs. 10218. The average monthly income per agricultural household was Rs. 6426 as per the last SAS Report of 2014 estimated by the same approach.

Natural Farming

• The main aim for promotion of Natural Farming is elimination of chemical fertilisers and pesticides usage and promotion of good agronomic practices. Natural Farming also aims to sustain agriculture production with eco-friendly processes in tune with nature to produce agricultural produce free of chemicals. Soil fertility & soil organic matter is restored by natural farming practices. Natural farming systems require less water and are climate friendly.
• Natural farming in India is being promoted through a dedicated scheme of Bharatiya Prakritik Krishi Paddhati Programme (BPKP). The scheme promotes on-farm biomass recycling with major stress on biomass mulching, use of on-farm cow dung-urine formulations, periodic soil aeration and exclusion of all synthetic chemical inputs.
• Livestock Sector is an important subsector of agriculture in the Indian economy. It grew at a CAGR of 8.15% during 2014-15 to 2019-20 (at constant prices). As per the estimates of National Accounts Statistics (NAS) 2020 for sector wise GVA of agriculture and allied sectors, the contribution of livestock in total agriculture and allied sector GVA (at constant prices) has increased from 24.32 % (2014-15) to 29.35 % (2019-20). Livestock sector contributed 4.35 % of total GVA in 2019-20.

Dairy Sector

• According to the Economic Survey 2021-22, Dairy is the single largest agricultural commodity contributing 5% of the national economy and employing more than 8 crore farmers directly. India is ranked 1st in milk production contributing 23 % of global milk production. Milk production in the country has grown at a compound annual growth rate of about 6.2% to reach 209.96 million tonnes in 2020-21 from 146.31 million tonnes in 2014-15.
• The all India per capita availability of milk is 427 grams per day in 2020-21 (provisional).

Fisheries

• India is the second largest fish producing country in the world accounting for 7.56 % of global production. It contributes about 1.24% to the country's GVA and over 7.28% to the agricultural GVA. Fisheries sector has demonstrated an outstanding double-digit average annual growth of 10.87 % since 2014-15 with record fish production of 145 lakh tons in FY 2020-21 (provisional). In terms of employment, the sector supports the livelihood of over 28 million people in India especially the marginalized and vulnerable communities. Export earnings from the fisheries sector was Rs. 46,662.85 crore during 2019-20.
• The Government launched a new flagship scheme of Rs. 20,050 crores called Pradhan Mantri Matsya Sampada Yojana (PMMSY) in May 2020 as a part of the ANB Package. Under PMMSY, key interventions include enhancing fish production and productivity, modernizing and strengthening the value chain, creating fisheries and post-harvest infrastructure and developing robust fisheries management and regulatory frameworks.
• Under the scheme "Integrated Management of Public Distribution System" which was started during 2018-19 and 2019-20, One Nation One Ration Card (ONORC) System has been launched. The validity of the scheme has been extended to 31.03.2023 from the existing 31.03.2022. Through this system migratory beneficiaries shall be able to access their food security entitlements from any fair price shop (FPS) of their choice by using their same ration card after biometric/Aadhaar authentication on electronic Point of Sale (ePoS) devices at the FPS.
• The Government has now set 20 % ethanol blending target for mixing ethanol with petrol to be achieved by 2025. It is estimated that the blending target at 10 % would be achieved during 2022. With a view to achieve these targets, Government has allowed production of ethanol from different feed stocks viz B-Hy & C-Hy molasses, cane juice, sugar syrup, sugar and damaged food grains including surplus FCI rice, maize, etc. by the distilleries either attached with sugar mills or standalone.  [Source: BS2021-22]

Sweet Revolution

• Keeping in view the importance of beekeeping as part of the Integrated Farming System (IFS) in the country government approved the allocation of Rs. 500 crore for National Beekeeping & Honey Mission (NBHM) for three years (2020-21 to 2022-23). The mission was announced as a part of the ANB scheme. NBHM aims for the overall promotion & development of scientific’ beekeeping in the country to achieve the goal of 'Sweet Revolution' which is being implemented through National Bee Board (NBB). Total 45 projects for assistance of Rs. 88.87 crores have been approved/sanctioned for funding under NBHM as on 17.12.2021.
• Beekeeping is an agro-based activity which is being undertaken by farmers/ landless labourers in rural area as a part of the IFS. India's export of honey has increased by about 110 % between 2013-14 to 2019-20. [Source; ES2021-22]

Agriculture Production Board

• The Importance of agriculture in the national economy is indicated by many facts, e.g.- agriculture is the main support for India's transport systems, secure bulk of their business from the movement of agricultural goods. Internal trade is mostly in agricultural products.
• Agricultural growth has a direct impact on poverty eradication. It is also an important factor in containing inflation raising agricultural wages and employment generation.
• Besides, the allied sectors like horticulture, animal husbandry, dairy and fisheries have an important role in improving the overall economic conditions and nutrition of the rural masses.
• To maintain the ecological balance, there is need for sustainable and balanced development of both agriculture and the allied sectors.
• Commercial crops are those crops which are produced for trade purpose and not for self consumption by the farmers. It includes—Oil-seeds crops, Sugar crops. Fibre crops. Narcotic crops, Beverage crops.
• To encourage the agricultural products, the government announces to minimum support price for important agricultural crops.
• The function of Agriculture Cost and Price Commission (ACPC) is to decide the minimum support prices on behalf of the government.
• Minimum Support Price (MSP) announced by the government is that price at which government is ready to purchase the crop from the farmers directly, if crop price falls below the MSP.
• The Government has hiked the Minimum Support Price (MSP) of kharif crops for Marketing season 2021-22, with a view to ensuring remunerative prices to the farmers for their produce. The increase in MSP for Kharif Crops for marketing season 2020-21 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the all-India weighted average Cost of Production (CoP). Procurement of 433.08 LMT of wheat in 2021-22 has been at a record high. About 49.16 Lakh farmers have already been benefitted from the ongoing wheat procurement operations with MSP value of Rs. 85,483.25 Crore.

Food Inflation

• Headline CPI inflation averaged 6.6 % in 2020-21 (Apr-Dee) and stood at 4.6 % in December 2020, mainly driven by rise in food inflation, which has increased from 6.7 % in 2019-20 to 9.1 % in 2020-21 (Apr-Dee), owing to build up in vegetable prices.

• The credit of green revolution in India is given to the Agriculture Scientist Dr. Norman Borlaug. However, the contribution of Dr. M.S. Swaminathan is not less. But, its termed name is the contribution of American scinentific Dr. William Gande.
• Speedy increase in the field of milk production is called White Revolution.
• To increase the pace of White Revolution, the Operation Flood was started.
• The Father of Operation Flood was Dr. Verghese Kurien. The Operation Flood was the largest integrated dairy development programme of the world. It was started by National Dairy Development Board in 1970.
• The increase in oil-seeds production was due to 'Yellow Revolution'.
• The progress in increase of fish production was called 'Blue Revolution'.
• The percentage of plan outlay on agriculture and allied sectors to total plan outlay varied between 31% and 14.9% from the First Plan to Tenth Plan.
• Actual outlay on the agricultural sector ranged between 18 and 24% of the total Plan outlay (except during the First Plan, it was as high as 31 %).
• During Eleventh Plan (2007-12) the plan outlay on agriculture has declined to only 18.5%.
• During the first decade of planning (1951-61) when the First and Second Five Year Plans were implemented, the annual rate of growth in agriculture was 3.3%.
• Duringthe llth Plan period the average of annual growth rates of GDP 3.7% has been achieved in agricultural and allied sectors. This is short of the target of 4% but is better than the achievement of 2.4% in the 10th plan.
• The Tenth Plan was the first plan which did not fix targets of crop production.
• Green revolution did not cover barley, ragi and minor-millets.
• The Green revolution was confined only to High Yielding Varieties (HYV) mainly rice, wheat, maize and jowar.
• National Agriculture Insurance Scheme was implemented in Oct, 1999.

• By the end of first five year plan middlemen had been removed (except small areas).
• The following measures were made effective for the betterment of farmers :
  1. Regulation of tax 2. Security for the rights of farmers 3. Right of land ownership for the farmers
• For the reorganisation of agriculture land holding mainly two measures were taken—1. Land ceiling and2. Chakbandi.
• Land ceiling determines the maximum land which can be held by a farmer. Holding more than that area will be illegal.
• Chakbandi of land means to aggregate the divided and broken land.
• The land within area less than 1 hectare, is called marginal land holding, 1 to 4 hectare area is called small land holding and the land within area more than 4 hectare, is called large land holding.
• Chakbandi was implemented first time in India in the year 1920 in Baroda.

• Green Revolution was started in the Third Five Year Plan. The most positive effect of Green Revolution was on wheat. There was 500% increase in crop production.
• Unorganised sources of agriculture finance are moneylenders, money-dealers, relatives, businessmen, landlords and commission agents.
• Organised sources of agriculture finance are Co-operative Committees, Co-operative Banks, Commercial Banks, Regional Rural Banks, the Government etc.
• Co-operative Credit Organisation started first time in 1904. Primary Co-operative Committees provide credit for short period.
• State Co-operative Agriculture and Rural Development Banks provide credit for long period.

• Land Development Bank was established in the year 1919 in the form of Land Mortgage Bank. Land Development Bank provides long-term loans.
• National Bank for Agriculture and Rural Development (NABARD) is the apex institution of Rural Credit. It was established on 12^thJuly, 1982 by the merger of Agriculture Credit department and reconstruction of Agriculture and Development Corporation of the Reserve Bank of India. Its establishment is based on the recommendations of Shivraman Committee.
• Authorised share capital of NABARD was Rupees 500 crore. However, after an amendment its authorized share increased upto 5,000 crore with effect from 1^st February 2001.
• Further, a bill [The National Bank for Agriculture and Rural Development (Amendment) Bill, 2017] to increase its authorised capital by six times to Rs. 30,000 crore and enable exit of Reserve Bank of India (RBI) was passed in January, 2018.