Agricultural Development

1
Agricultural Development for Reducing Poverty in
India
Policy Forum
Organized by IFPRI and ADB at the Asian
Development Bank, Manila 9-10 August 2007
Dr. P.K. Mishra Secretary to Government of
India Department of Agriculture
Cooperation Ministry of Agriculture
2
Some Aspects of Indias Agrarian Structure

• 72 per cent of the population (743 million) live
  in rural areas (2001)
• 121 million farm holdings (2001)
• 127 million cultivators and 107 million
  agricultural labourers
• Average size of operational holding 1.3 hectares
• 82 per cent of operational holdings are small and
  marginal (less than 2 hectares)
• 60 per cent of the cultivated area dependent on
  rainfall

3
Magnitude of Poverty in India

• The percentage of population below poverty line
  declined from 54.88 in 1973-74 to 26.10 in
  1999-2000 and 21.80 in 2004-05
• However, the number of poor was 321 m. in 1973-74
  and 302/238 m. in 2004-05.
• of poor people increased from 45 to 64 during
  1960-68, then declined to 34 by 1990, further
  increased to 37 by 1994. Since then it has a
  declining trend

Planning Commission FAO, 2007
4
Some Aspects of Rural Poverty in India 1999-2000

• Incidence of poverty highest among rural
  households engaged as agricultural labourers
  followed by non-agricultural labourers in all
  States
• Self-employed agricultural households have
  relatively less poverty compared to self-employed
  in non-agricultural operations
• Landless and marginal farmers are among the
  poorest

Source Panda M. in Beyond Food Production, FAO,
2007
5

• Households with access to irrigation have lower
  incidence of poverty (19.79) compared to those
  without irrigation (30.71)
• Higher incidence of poverty among scheduled
  tribes (ST) and scheduled castes (SC)
• Two-thirds of Indias poor are found in six
  States
• Uttar Pradesh
• Bihar
• West Bengal
• Orissa
• Madhya Pradesh
• Maharashtra (map)

6
Growth of Overall GDP and Agriculture GDPIn
different Five Year Plans
7.6
6.8
5.5
5.5
5.0
5.8
5.8
3.4
4.8
3.6
3.0
2.5
2.8
2.3
7
Growth Rates of GDP and Decline in the incidence
of Rural Poverty()

• Growth rates of Agri GDP and per capita total
  GDP significantly associated with decline in the
  incidence of poverty.
• The rate of decline in incidence of poverty is
  more when per capita income of more than 3 per
  cent is accompanied by a higher growth rate of
  Agri GDP.

8
Factors Influencing Poverty Reduction

• Sectoral and geographic (across States)
  composition of growth.
• Per capita income growth of more than 3 per cent
  after mid-1970s
• Agricultural productivity and increase in real
  wage leading to higher employment and income
• Higher government expenditure, particularly in
  rural roads, education and agricultural research

Source FAO 2007
9
Trends of Area, Production and Yield of Rice
Production In Million Tns
Yield Tns/Ha
Area In Million Ha
10
Trends of Area, Production and Yield of Wheat
Yield Tns/Ha
Area In Million Ha
Production In Million Tns
11
Trends of Area, Production and Yield of Pulses
Yield Tns/Ha
Area In Million Ha
Production In Million Tns
12
Major Problems faced by Indian Agriculture

• Small Operational Holdings
• Rain-fed Agriculture, Inadequate Risk Management
  
• Stressed Land, Water and Genetic Resources
• Declining Investment
• Declining Resource Use Efficiency
• Weak farmer-research Linkages
• Institutional Support gap Extension, Credit ,
  Marketing
• Uneven Growth across Regions, Crops and Category
  of Farmers
• Inequities in Access and Entitlement.

13
Yield Augmentation
Soyabean

1.57 (Andhra Pradesh)

1
.13
(
M
adhya Pradesh
)

2.8

In Major Producing States


Factors required to be addressed A. Soil
Health and Nutrient Management B. Water
Management C. Seed Management D. Farm
Mechanization
14
11th Plan Vision

• Broad Based, Inclusive, Faster Poverty
  Reduction, Bridging the Divide
• Economic growth
• 9 per cent overall Growth,
• 4.1 growth from Agriculture and allied sector
• This implies much higher rate of agricultural
  growth than achieved during the 9th and 10th Plan
  
• Requirements
• Address supply and demand side issues Thrust on
  Supply
• Evolve state and crop/produce specific
  strategies
• Create non-farm employment opportunities in rural
  areas
• Take measures to improve farmers income

15
Growth Simulation - 11th Plan

• Higher growth momentum needed
• in different crop segments
• in different States and Regions.

16

• Crop Sector ( Field crops and Horticulture)
• Area improvement
• Yield augmentation
• Non-Crop Sector
• Animal Husbandry and Dairy
• Fisheries
• Institutional Support
• Extension
• Credit
• Marketing and Post- harvest Management
• Risk Management
• Price Support System
• Linking farmers to market
• Focus on low-productivity but high potential
  districts

Growth Drivers
17
Some Recent Initiatives

• National Horticulture Mission
• Bharat Nirman
• National Rural Employment Guarantee Scheme
  (NREGS)
• Agricultural Technology Management Agency (ATMA)
• National Bamboo Mission
• National Rainfed Area Authority
• National Fisheries Development Board
• Credit Policy Flow of credit and reform of
  cooperatives
• Agricultural Marketing
• National Food Security Mission
• Additional Central Assistance Scheme to
  incentivise States

18
Policy Issues

• Increase Plan allocation Centre States, with
  incentives for States to increase their share
• Fertilizer Policy e.g. nutrient based subsidy,
  organic and bio fertilizers other subsidies
• Agricultural Insurance
• Credit and Cooperative Reforms Vaidyanathan
  Committee
• Farmers Indebtedness Radhakrishnan Committees,
  SF/MF access to credit
• Structural and legal reforms e.g. Seeds Act,
  ECA, APMC Act
• Tax and tariff structure for sustainable
  production processing
• Issues of MSP, Market Intervention and
  procurement
• Diversification vs. Food Security

19
Key Areas for the Days Ahead

• Agricultural Research
• Extension and technology transfer
• Diversification and food security
• Post-harvest management and supply chain
• Managing agricultural risks yield and price
• Rural non-farm sector
• Appropriate Policy design and implementation

20
Thank you