POWER POINT PRESENTATION ON INDIAN AGRICULTURE IN MILLENIUM : POWER POINT PRESENTATION ON INDIAN AGRICULTURE IN MILLENIUM Presented by
LECTURER IN ECONOMICS
N.G COLLEGE NALGONDA
CELL NO 9490138118 INTRODUCTION : INTRODUCTION INDIA today is not only self sufficient in food grains –through the population has gone up 3 times since 1947 to 1 billion – but it is also a food grain exporter in a small way. Indian agriculture in the new millennium faces a far more complex set of problems largest number of unfed &under nourished population in the world. There was absolute shortage of food grains supply in 1960s.we survived through the magnificence of AMERICA which supplied wheat to as under its PL 480 programmer. Thanks to the green revolution INDIA attained self sufficient in food grains in the 1970’s. OBJECTIVES OF FOOD SECURITY : OBJECTIVES OF FOOD SECURITY Objectives of food security are Poverty alleviation, self-reliance, high sect oral growth, removing inequalities, regional disparities, and high productivity. MSP, technical progress, agricultural growth .Agricultural diversification has played an important role in achieving the objectives of Food Security. Investment IS needed in Cold storage, rural roads, communication. Introduction of BIOTECHNOLGY, R&D, Development of Crop husbandry, Animal husbandry, Dairy, Fisheries, Forestry &Wild life, Plantations, Soil water conservation, Food storage, Agricultural education is also important.
The vision of agricultural development is economic welfare Mission of agricultural development to concentrate agricultural growth in well endowed regions. Strategies of agricultural development following 3 options 1) Extensive agriculture 2) Intensive agriculture 3) Scientific knowledge based technical change like green revolution.
The R&D, Education, Soil testing labs, Irrigation .The government expenditure requires for Agricultural Research Watersheds, Rural electricity, Integrated fertilizer, Rural professional literacy etc. LIBERALISATION OF AGRICULTURE : LIBERALISATION OF AGRICULTURE The overall liberalization of economy would result in higher investment & growth in agriculture induced by favorable terms of trade. Now agriculture in India has been unprotected where as industry has been protected as a result, the Terms of Trade for agriculture unfavorable. A part from food grains, Horticulture products, Floriculture and agro processing in general or likely to emerge as promising sectors. Where population presser on land is high and wages are low. The marginal formers are converting themselves into Non farm employees. The pace of agriculture has to be conditioned by steps to strengthen supply side factors.
Liberalization is expected to provide a powerful thrust to growth and modernization in the economy including agriculture. Intervention by the public agencies in the commodity markets seems to have had mixed results. Value edition of exports is that they involve transactions between the farmers and organized industries having capacity to their own advantage.
CURRENT POLICY FRAME WORK
Agricultural price policy is aimed at intervention in the agricultural product market with a view to influencing the level of fluctuations in prices and price spread from the fortune to the retail level and aligning inter crop ratio in the domestic market with that of the world market.
The policy may work against agriculture because agriculture producers may suffer from exports restrictions which keep domestic prices depressed by reducing agricultural products. Agriculture can be rationalized to provide the much needed resources to increase public investment. POLICY INSTRUMENTS : POLICY INSTRUMENTS At present 24 commodities are covered under the MSP program These include
PADDY, WHEAT, JAVAR,BARLY,BAJRA,MAIZE,RAGI,GRAM,TUR,URAD,GROUNDNUT,MUSTERSEED TORIYA,SOYABEEN,SUNFLOWERSEED,SEASEMEN,NIGISEED,COPRA,COTTON,JUTEMESTA,VIRGINIA FLU The CACP now examines 8 concepts of cost EX; COST A1,COST A2 ,COST B1,COST B2,CO0ST C1,COST C2,COST C2*,COST C3
International prices are highly manipulated domestic prices and trade policies of exporting countries. U.S.A helps growers of sugarcane get high prices by using import quotas to prevent cheaper sugar flooding in. THE FOOD STOCK AND MANAGEMENT : THE FOOD STOCK AND MANAGEMENT The stock with the public agencies consists of buffer stocks and operational stocks includes base level stocks which cannot be pulled out from the system and food security stocks which used to reduce the fluctuations in the availability of grains from year to year. When the farmers start getting right prices signals, they look for and adopt the modern inputs and new technology for increasing the new technology PUBLIC DISTRIBUTION SYSTEM : PUBLIC DISTRIBUTION SYSTEM The PDS has two distinct components procurement and distribution. Procurement has to deal with fluctuating situations, harvest conditions, market prices etc. where as distribution requirements are easily identify and relatively stable. FCI has often fail to provide price support, particularly y in backward areas where it is most needed The PDS should be viewed as an instrument of income transfer in favor of the poor .PDS is the rural biased at the all India level for rice, coarse cereals, sugar, soaps, rice, oils, salt. These items constitute 60% of total PDS purchases.
Investment would obviously include investment in major, medium, minor, irrigation; land improvement, water management and conservations system farm machinery. THE ROLE OF TECHNOLOGY&AGROPROCESSING : THE ROLE OF TECHNOLOGY&AGROPROCESSING The new economic policy emphasizes the development of agro processing as an instrument for agriculture lands and rural modernization. Technology was domestically demonstrated in the 1970 by the green revolution which saw as impressive growth in whet and rice verities' the measure of technical efficiency is highly correlated with the level of human capital development. TFP growth consists of two components technical efficiency and technical changes. It assumes particularly in reform process. AGGREGATE GROWTH PERFORMANCE IN AGRICULTURE STATES : AGGREGATE GROWTH PERFORMANCE IN AGRICULTURE STATES As the plantation of crops concentrated in a few districts of the states like Assam tea crop), Karnataka coffee and Karla rubber plantation). SDPA analysis was mainly aimed at identification of the emerging integral patterns of growth in 3 major crops namely cereals, pulses, oilseeds in addition cotton the crop with geographically more dispersed cultivation in the country. Increasing investment for technology up gradation, improvements in the input use efficiency and development of infrastructure
. Agriculture would pay a far more crucial role in all the regions in the future Most important and favorable prospect of growth in domestic demand for food grains and non food grains and the liberalized trade environment for non food grains, are imply increasingly intensive competition for area between food grains and non food grains. Cereals and pulses have been significantly disparate over time and space in India. Sugarcane and cotton are also to be improving its performance without put growth rate. CONCEPT OF DIVERSIFICATION : CONCEPT OF DIVERSIFICATION 1) Crop diversification.
2) Enterprise diversification.
3) Structural transformation economy.
Thus diversification could suggest
1) shift from form to non form activities
2) A shift from less profitable crop to more profitable crop or
And use resources in diverse but complimentary activities.
NATURE OF DIVERCIFICATION
One of the most important resources to move away from agriculture to non agriculture sectors is labor. The employment issue is related to not only number of employment to the surplus of labor; but also linked with the nature of employment. SMALL SCALE AGRO-INDUSTRY IN INDIA : SMALL SCALE AGRO-INDUSTRY IN INDIA Agro industry starts heading towards non- food processing activities such as cotton, wool, silk textiles, jute, meteor, cotton, and other vegetables, wooden bamboo furniture, fixtures, paper and pepper production and so on.
Since tiny and small scale agro based industrial enterprises are highly heterogeneous in use, scale of operation, product range, quality and quantity output. The new production technology in combination a verity of institutional support such as extent ion credit, subsidies input supply, product price and marketing assistant spread over to other regions as well. Education would be an extremely important input for agriculture of the future. Every farmer has not only to be an efficient producer but a well informed market strategist. It is the right time to think more rigorously about regional specialization in education training and skill development, just as the Indian economy is steadily moving to evolve regional specific production and marketing outputs. The total for the last two decades reveals that investment in irrigation and allied heads was about 93%of the public investment is reported by the CSO. DIFFERENT MEASURES OF SUPPLY COST : DIFFERENT MEASURES OF SUPPLY COST The area benefiting from miner irrigation works (dug wells, tube wells and tanks) has always exceeded the corresponding area covered by major and medium irrigation works, mostly comprising canals orienting from big dams and barrages built across rivers. Canal irrigation three types of expenditure area reported
1) Working expanses of operating maintaining canal works.
2) Interest payments on capital invested in canal works.
3) Capital out lay.
Today the benefits from Canal irrigation cannot be additional to form income as a result of use of canal waters. There are two hurdles in measuring these irrigational benefits.
1) Information about irrigated agriculture is available for its crop wise yield/production by sources of irrigation.
2) Precise information on associated incremental costs of irrigation is lacking.
Cost variants are cost І, cost ІІ, and cost ІІІ one can also visualize some hybrid cost variants combining the features of cost1 and cost ІІ.
Balanced development of irrigation sector has been a hallmark of Indian irrigation planning there by duly recognizing hydrological linkage between surface water and ground water resources.
The total cropped area irrigated by ground water is considerably larger, and has probably risen faster than before independence. There is one school that which believes that efficient utilization of ground water is best achieved through a system of competitive water markets without any subsidization of capital or current inputs. The most potentiality exists for using farmers and local institutions to monitor ground water on a much larger, more systematic, scientifically, satisfactory, sampling basis. DROUGHTS AND SCARCITY WORKS : DROUGHTS AND SCARCITY WORKS The program of the (DPAP) Drought Prone Area Program 1970’S lacked of ad-hoc soil and water conservation structures along with promotion of self employment, while the watershed development land, water and vegetation management leading to restoration of ecological balance
APPROACHES TO SCARCITY DROUGHT
RELIEF IN INDIA
Famines or droughts are not new in India. There is evidence of famines even during the pre-British period.
1) Some famines or result is suffering of agricultural population, there is need to help them during the period of famines.
2) Famines may be helped by waving of land revenue and by TACCAVI loans to enable them to cultivate lands in the next season.3) Relief works may be stated for creating works could be related to road construction, irrigations, village level facilities etc. POVERTY AND SOCIAL DEVELOPMENT : POVERTY AND SOCIAL DEVELOPMENT In terms of social development poverty, literacy, health care, housing, drinking water and other basic necessities’ decent living, the rural communities have extremely poor performance. This is cause for concern itself and also because it leads to lower levels of production in rural areas.
BHALAWANTA Roy Mehta committee development had noted that the success of projects community development depended critically on people’s participation.
Institutions have been defined as the game of a society or more formally or the humanly devised constraints that human interaction. Economic development implies raising the standard of living of the populace. INSTITUTIONS AND DEVELOPMENT; SOME EVIDENCE : INSTITUTIONS AND DEVELOPMENT; SOME EVIDENCE Weak financial institutions are responsible for the EAST ASIAN CRISIS. T he new institutional economics (NIE) is increasingly applied to study economic and agricultural development. The evidence suggests that strong link between quality of institutions &investment and growth.
INSTITUTIONS FOR MANAGEMENT OF COMMON POOL RESOURCES
Institutional aspects of management common pool resources such as land, forest water, irrigation tanks etc have perhaps received considerable attention of researchers in India. Technological intervention should provide benefits to all social classes in the target domain and necessary information, training and other support should be extended during the initial phase of the intervention.
INSTITUTIONS FOR FORMERS AGRICULTURAL REASEARCH AND DEVELOPMENT
Agricultural Institutions providing Information to farmers about technologies and their attributes this will help the formers to make a rational choice and also protect them from the unscrupulous trade activities.
AGGRARIAN AND CREDIT INSTITUTIONS
The basic objective of this sub theme was to know how agrarian and credit institutions including those linkage production with processing effect technology impact. The main issue covered are ceiling on land holdings, consolidation of holdings, tenancy and contract forming, ex; PSB, NAABARD, NGOS, SHG. The agricultural land resources of India along with its operators were gradually impoverished because economic motivation tended towards exploitation rather than toward investment and improvement. THE POLICY OBJECTIVES FOR STRUCTURAL REORGANISATION : THE POLICY OBJECTIVES FOR STRUCTURAL REORGANISATION The central thesis behind the allocation of intermediaries was that ownership of land be clearly identified with management and operation of land. The owner himself should operate and manage the farm business. Larger financial resources for agricultural development could be provided and the volume of employment increased. IMPACT OF STRUCTURAL REORGANISATION
Under the Indian constitution land reform is a state subject. Land cultivated on tenancy or rented arrangements can enable the cultivators to enlarge the scale of his operations to economically justify mechanization and his own water supply.
EMERGING PERSPECTIVE AND POLICY ISSUES
The socio economic and political environment in which these programmers’ were introduced has changed so dramatically that it would be almost impossible to carry out the reforms. Social tension arising from the rich becoming richer and the poor proper has become a matter of serious concern.
SUSTAINABLE FOOD SECURITY During the last 25 years many chronically food deficit countries of the Asian region have been able to raise food output above the rate of growth in population. According to the most likely 2020 vision scenario the proportion of malnourished children will decline from 34%to24% by 2020. HUNGER FREE AREA PROGGRAMME AND NATIONAL FOOD SECURITY ACT. : HUNGER FREE AREA PROGGRAMME AND NATIONAL FOOD SECURITY ACT. HFAP consisting of the following components
1) Ensuring sustainable availability of food by maintaining
Growth in food production
2) Advance in crop and animal productivity.
Provide entitlement to food through protective social security. At the aggregate level globally and regionally as well as, food supply was fairly adequate to meet the demand. The challenges and opportunities south and south east Asia region faces 2 basic food security challenges.
1) Maintaining the availability of food.
2) Expanding the economic access to food.
A pro active instead of business as usual approach to food security is pursued the countries in the region would not be able to resolve the problem of poverty and ensure food security for all even by 2020. STRATAGIES : STRATAGIES Sustainability of food availability.
Restructuring Research &Technology development.
Restructuring Technology develops delivery and support system.
Social mobilization and group action.
Affirmative action and empowerment of women.
Ensuring adequate house hold income strengthening the asset base.
Crop intensification and framing systems diversification.
Promotion of rural employment and diversification.
Providing enlightenment to food.
Surveillance and food reserves.
FAO 1983 had formulated that the basic concept of food security implied that ‘”all people at all the time have both physicals and economic access to the basic food they need. MEETING THE DEMAND SUPPLY GAP SOME SUGGETIONS : MEETING THE DEMAND SUPPLY GAP SOME SUGGETIONS Several measures would be needed for bridging the gap between projected demand and supply of food grains for meeting domestic demand and for creating adequacies surplus in agricultural to be able to reap the benefits of international trade and exports. Agricultural research should help the farmers in making more efficient use of their resources through scientific management and enable them diversity into more remunerative crops. The management of knowledge is only not just in a farm firms and but also in non-form sector will become very crucial in the coming years. The contribution of knowledge as a factor of production is beginning to acquire dominant role in the future trade investment and technological change in agriculture as well as other sectors of the economy. IPRS do play a significant role in generating the profits. AGGRARIAN AND CREDIT INSTITUTIONS : AGGRARIAN AND CREDIT INSTITUTIONS The basic objective of this sub theme was to know how agrarian and credit institutions including those linkage production with processing effect technology impact. The main issue covered are ceiling on land holdings, consolidation of holdings, tenancy and contract forming, ex; PSB, NAABARD, NGOS, SHG. The agricultural land resources of India along with its operators were gradually impoverished because economic motivation tended towards exploitation rather than toward investment and improvement. CONCLUDING COMMENTS : CONCLUDING COMMENTS The Indian Agriculture faces so many new generation problems in the new millennium by making millennium development goals (MDGS) as the focal point of public policy; the report has succeeded in bringing on the top of the development agenda. Issues like reduction of poverty, elimination of hunger, promotion of health and education of the rural poor; and promotion of gender equality and environmental sustainability. A rural urban gap in productivity is another worrisome feature of India’s agro industry
While further agricultural intensification in industrialized countries will be ecologically disastrous, the failure to achieve agricultural intensification and diversification in predominantly agricultural developing countries will be socially disastrous. Utilization of the agricultural surplus creates the basics for industrialization.