Agriculture Scetor

AGRICULTURE

Agriculture provides significant support for economic growth and social transformation of the country. As one of the world’s largest agrarian economies, the agriculture sector (including allied activities) in India accounted for 14.2 per cent of the gross domestic product (GDP), at constant 2004-05 prices during 2010-11 as per Central Statistics Office (CSO) of India.In 2009-10,the GDP for agriculture and allied sectors accounted for 14.6 per cent of the GDP compared to 15.7 per cent in 2008-09.

The agriculture sector accounts for about 58 per cent of employment in the country (as per 2001 census). This sector is a supplier of food, fodder, and raw materials for a vast segment of industry. Hence the growth of Indian agriculture can be considered a necessary condition for inclusive growth'. More recently, the rural sector (including agriculture) is being seen as a potential source of domestic demand,a recognition that is even shaping the marketing strategies of entrepreneurs wishing to widen the demand for goods and services. In terms of composition, out of a total share of 14.6 per cent of the GDP in 2009-10 for agriculture and allied sectors, agriculture alone accounted for 12.3 per cent followed by forestry and logging at 1.5 per cent and fisheries at 0.8 per cent.

In 2009-10, despite experiencing a poor monsoon, the growth marginally recovered to 0.4 per cent primarily due to a good rabi crop. Several advance measures taken by the government also had the desired effect of checking the impact of the drought situation on the rabi crop. Things are looking bright in the current year with a relatively good monsoon and the agriculture-sector is expected to grow at 5.4 per cent as per the 2010-11 advance estimates. The agriculture sector growth in the first four years of the Five Year Plan (2007-2012) is estimated at 2.87 per cent. In order to achieve the Plan target of average 4 per cent per year, the agriculture sector needs to grow at 8.5 per cent during 2011-12.

The rates of growth and share of agriculture and allied activities in the GDP of the country are given below:

Agriculture sector: Key indicators

Figures in Percentage (%)
	Item	2008-09	2009-10	2010-11 (AE)*
1	GDP—Share and Growth (at 2004-05 prices)
	Growth in GDP in agriculture & allied sectors	-0.1	0.4	5.4
	Share in GDP-Agriculture and allied sectors	15.7	14.6	14.2
Agriculture		13.3	12.3
2	Forestry and logging	1.6	1.5
	Fishing	0.8	0.8
	Share in Total Gross Capital Formation in the Country (at 2004-05 prices) Share of Agriculture & Allied Sectors in total Gross Capital Formation	8.3	7.7
Agriculture		7.7	7.1
3	Forestry and logging	0.07	0.06
	Fisheries	0.56	0.54
	Agricultural Imports & Exports (at current prices) Agricultural imports to national imports	2.71	4.38
Agricultural exports to national exports		10.22	10.59
4	Employment in the agriculture sector as share of total workers	58.2

*AE=Advance Estimates
Source : Central Statistical Organization (CSO) and Department of Agriculture and Cooperation. 

Animal Husbandry, Dairying and Fisheries
In 2009-10, this sector produced 112.5 million tonnes of milk, 59.8 billion eggs, 43.2 million kg wool, and 4.0 million tonnes of meat. The result of the 18th Livestock Census (2007), derived from village-level count, has placed the total livestock population at 529.7 million and poultry birds at 648.8 million.

India ranks first in world milk production, increasing its production from 17 million tonnes in 1950-51 to about 112.5 million tonnes in 2009-10.The per capita availability of milk has also increased from 112 grams per day in 1968-69 to 263 gram per day in 2009-10.

Livestock Insurance
A centrally sponsored scheme for livestock insurance is being implemented in all the States with the twin objectives of providing a protection mechanism to farmers and cattle rearers against loss of their animals due to death and to demonstrate the benefit of livestock insurance to the people. The scheme benefits farmers (large, small and marginal) and cattle rearers having indigenous/crossbred milch cattle and buffaloes.

Poultry

Poultry development is one of the most resilient sectors in the country, fast adapting itself to the changing biosecurity, health, and food safety needs. India produces more than 59.8 billion eggs per year, with per capita availability of 51 eggs per annum. The poultry meat production is estimated to be 1.85 million tonnes in 2008-09. To provide necessary services to the farmers, four regional Central Poultry Development Organizations (CPDOs) have been restructured on the principle of one window service.

Livestock health
Animal wealth in India has increased manifold and animal husbandry practices have also changed to a great extent. With improvement in the quality of livestock through launching of extensive cross-breeding programmes, the susceptibility of this livestock to various diseases, including exotic diseases, has increased. To ensure maintenance of disease-free status and compliance with the standards laid down by the World Animal Health Organization, major animal health schemes and programmes have been initiated.

Further, for control of major livestock and poultry diseases, the Government of India provides financial assistance to States/UTs in their efforts to prevent, control and contain animal diseases and also to strengthen veterinary services including reporting of animal diseases. All avian influenza outbreaks reported were effectively controlled and the country declared free from avian influenza in June 2010.

Fisheries
Fish production increased from 7.14 million tonnes in 2007-08 to 7.85 million tonnes in 2009-10. Fishing, aquaculture, and allied activities are reported to have provided livelihood to over 14 million persons in 2008-09, apart from being a major foreign exchange earner.

Feed and fodder
Adequate availability of feed and fodder for livestock is very vital for increasing milk production and sustaining the ongoing genetic improvement programme. It is estimated that there is green fodder shortage of about 34 per cent in the country. To increase the availability of fodder, the Department of Animal Husbandry & Dairying is implementing a Centrally sponsored Fodder Development Scheme throughout the country to supplement the efforts of the states. A central Minikit Testing Programme is also being implemented under which minikits of latest high-yielding fodder varieties are distributed free of cost to farmers for their popularization.

Agricultural Credit

In the year 2009-10, Government provided an additional 1 per cent interest subvention to those farmers who repaid their short-term crop loans as per schedule. The Government has raised this subvention for timely repayment of crop loans from 1 per cent to 2 per cent from the year 2010-11. Thus the effective rate of interest for such farmers will be 5 per cent per annum.

Agricultural Insurance

Four crop insurance schemes, namely the National Agricultural Insurance Scheme (NAIS), Pilot Modified NAIS (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS), and Pilot Coconut Palm Insurance Scheme (CPIS) are under implementation in the country.

The National Agricultural Insurance Scheme (NAIS)

The NAIS is being implemented in the country from rabi 1999-2000 season. The Agriculture Insurance Company of India Ltd. (AIC) is the implementing agency (IA) for the Scheme. The main objective of the scheme is to protect farmers against crop losses suffered on account of natural calamities.

The Pilot Modified NAIS (MNAIS)

Keeping in view the limitations/shortcomings of the existing scheme, the Government has approved the Modified NAIS for implementation on pilot basis in 50 districts from rabi 2010-11 season. The major improvements made in the MNAIS are: actuarial premium with subsidy in premium at different rates, i.e. 40 per cent to 75 per cent depending upon the slab, provided to farmers, all claims liability on the insurer, unit area of insurance reduced to village panchayat level for major crops, indemnity for prevented/sowing/planting risk and for post harvest losses due to cyclone, payment up to 25 per cent advance of likely claims as immediate relief, more proficient basis for calculation of threshold yield, minimum indemnity level of 70 per cent instead of 60 per cent, and private-sector insurers with adequate infrastructure allowed (at present, ICICILombard,IFFCO-Tokio and Cholamandalam-MS).

Weather Based Crop Insurance Scheme (WBCIS)

Efforts have been made to bring more farmers under the fold of crop insurance by introducing a Weather Based Crop Insurance Scheme (WBCIS).The WBCIS is intended to provide insurance protection to farmers against adverse weather incidences, which are deemed to unfavourably impact crop production. It has the advantage of settling claims within the shortest possible time.

Agricultural Marketing

Organized marketing of agricultural commodities has been promoted in the country through a network of regulated markets. Most of the State and Union Territory Governments have enacted legislations (Agriculture Produce Marketing Committee Act) to provide for regulation of agricultural produce markets.

Most of the states and union territories have enacted legislations (the Agriculture Produce Marketing Committee [APMC] Act) to provide for regulation of agricultural produce markets. Seventeen States/ UTs have amended their APMC Acts and the remaining are in the process of doing so.

There are 7157 regulated markets in the country as on 31st March 2010. The country has 21,221 rural periodical markets, about 15 per cent of which function under the ambit of regulation.