Kuruk April 2012

The Monthly Journal
Kurukshetra
MINISTRY OF RURAL DEVELOPMENT Vol. 60 No. 6 Pages 52 April 2012
CHIEF EDITOR Rina Sonowal Kouli EDITOR KAPIL KUMAR Joint Director Vinod Kumar Meena COVER DESIGN Anju Sharma EDITORIAL OFFICE ROOM NO. 661, NIRMAN BHAVAN A-WING (GATE NO.5), MINISTRY OF RURAL DEVELOPMENT, NEW DELHI-110011 TEL. : 23061014, 23061952 FAX : 011-23061014 E-MAIL : kurupage@yahoo.co.in FOR SUBSCRIPTION ENQUIRIES, RENEWALS AND AGENCY INFORMATION PLEASE CONTACT: Business Manager EAST BLOCK-IV, LEVEL-VII, R.K. PURAM, NEW DELHI-110066 TEL. : 26105590, 26100207 FAX : 26175516 E-MAIL : pdjucir_jcm@yahoo.co.in WEBSITE : publicationsdivision.nic.in SUBSCRIPTION : INLAND 1 YEAR : RS. 100 2 YEARS : RS. 180 3 YEARS : RS. 250 ABROAD (AIR MAIL) ONE YEAR RS. 530 (NEIGHBOURING COUNTRIES) RS. 730 (OTHER COUNTRIES)
l l
CONTENTS
Rural focus of budget 2012-13 G.Srinivasan Union Budget 2012-13: A Quick Review from Rural Livelihood Perspective 3
Dr. K. K. Tripathy
CRITICAL REVIEW OF THE UNION BUDGET 2012-13 Dr. Yashbir Singh Shivay Anshu Rahal THE BUDGET AND RURAL DEVELOPMENT Budgetary Allocation and its Utilization MGNREGS-A Viewpoint Second Green Revolution: Eastern States to Lead The Way Dr. Shahin Razi Dr. S.M Jawed Akthar N.P. Abdul Azeez Dhurjati Mukherjee
9 17 19 23 29 33
l l
APPROACHES TOWARDS TWELTH FIVE YEAR PLAN NEED FOR FOCUSED ATTENTION Arpita Sharma Electricity Through Cogeneration- A Promising Development FROM THE GROUND Peoples Biodiversity Register and Tapping Indigenous Knowledge A Case Study From Wayanad Electricity from fruits and vegetables CARBON CREDIT AN ENVIRONMENT MANTRA Dr. J. R. Meshram Gargi Malik
Dr. Raju Narayana Swamy S.Jothimani M.Marimuthu M.Paramasivan Dr. R. Amsaveni Mrs. S. Gomathi
36
42 45
Sales Emporia : Publications Division: *Soochna Bhavan, CGO Complex, Lodhi Road, New Delhi -110003 (Ph 24365610) *Hall No.196, Old Secretariat, Delhi 110054(Ph 23890205) * 701, B Wing, 7th Floor, Kendriya Sadan, Belapur, Navi Mumbai 400614 (Ph 27570686)*8, Esplanade East, Kolkata-700069 (Ph 22488030) *A Wing, Rajaji Bhawan, Basant Nagar, Chennai-600090 (Ph 24917673) *Press road, Near Govt. Press, Thiruvananthapuram-695001 (Ph 2330650) *Block No.4, 1st Floor, Gruhakalpa Complex, M G Road, Nampally, Hyderabad-500001 (Ph 24605383) *1st Floor, F Wing, Kendriya Sadan, Koramangala, Bangalore-560034 (Ph 25537244) *Bihar State Co-operative Bank Building, Ashoka Rajpath, Patna-800004 (Ph 2683407) *Hall No 1, 2nd floor, Kendriya Bhawan, Sector-H, Aliganj, Lucknow-226024 (Ph 2225455) *Ambica Complex, 1st Floor, above UCO Bank, Paldi, Ahmedabad-380007 (Ph 26588669) *KKB Road, New Colony, House No.7, Chenikuthi, Guwahati 781003 (Ph 2665090)
Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the problems of Rural Development with special focus on Rural Uplift. The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the government or the organizations they work for. The readers are requested to verify the claims in the advertisements regarding career guidance books/institutions. Kurukshetra does not own responsibility.
Inside
he Union budget 2012-13 proposes to increase the total outlay for the agriculture sector by more than 18 per cent. Announcing the budget proposals the Finance Minister Pranab Mukherjee said that the agriculture sector would
continue to be a priority for the government. However, there has been a 17.5 per cent reduction in the outlay for MGNREGA. Several analysts have said that MGNREGA should improve quality of assets created and also to bring about synergy between the scheme and the agriculture sector. The hike in allocation for agriculture will benefit the farmers who have have also been allowed to use their Kisan Credit cards at the ATM. In addition, the target for agricultural credit has been raised by 100000 crore rupees to 575000 crore rupees. Budgetary allocation for rural drinking water and sanitation has been hiked by over 27 per cent, while allocation by Sarva Shiksha
Abhiyan increased by 21.7 per cent, in the budgetary allocation. We discuss the implications of the budget proposals for the rural sector, including the agriculture sector in this issue. To enhance credit facilities to the rural sector the government has also announced 10000 crore Rupees to the NABARD (National Bank for Agriculture and Rural Development) for refinancing rural banks and help better for free flow funding. Bringing focus on agriculture, the Finance Minister declared revamping of five missions to merge various activities into set of missions to address the pressing needs of peasantry and to promote agricultural and rural development in a holistic fashion. Thus the National Food Security Mission aims to bridge the yield gap in respect of paddy, wheat, pulses, millet and fodder. The ongoing Integrated Development of Pulses Villages, Promotion of Nutri-cereals and Accelerated Fodder Development Programme would now become a part of this Mission.

Kurukshetra
April 2012
Rural focus of budget 2012-13

G. Srinivasan
- A welcome feature is that the interest rate of 4 per cent recommended by the National Commission of Farmers headed by farm scientist and Rajya Sabha Member Dr. M.S.Swaminathan has been retained for those who are prompt in repayment of loans contracted. - The budgetary outlay for rural drinking water and sanitation is proposed to be raised from Rs 11,000 crore in the fiscal 2011-12 to Rs 14,000 crore
hat the prospects of Indian economy centre mostly around the rural hinterland with agriculture still accounting for livelihood security of more than 80 per cent of the countrys population in one way or another need no reiteration. It is presumably this proposition that has weighed in the mind of the Union Finance Minister Mr. Pranab Mukherjee when he presented the UPA government Budget in Parliament on March 16. Recognising the underlying fiscal constraints and the need not to spread the available resources too thinly on a diverse range of progammes that do not pan out the desired results, the Budget has made
some realistic calculations based on sound and sustainable ground realities. Thus in the case of agriculture, the fulcrum for rural development in its entirety, there is no new initiative but in order to help farmers access to farm loans readily and adequately, the target for agricultural credit has been substantially stepped up to Rs 5.77 lakh crore during the fiscal 2012-13, the inaugural year of the Twelfth Five-Year Plan (2012-17). A welcome feature is that the interest rate of 4 per cent recommended by the National Commission of Farmers headed by farm scientist and Rajya Sabha Member Dr. M.S.Swaminathan
Kurukshetra
April 2012
has been retained for those who are prompt in repayment of loans contracted. Besides, the same interest subvention on post- harvest loans upto six months against negotiable warehouse receipt would also be available so as to encourage the farmers to keep their produce in warehouses.
NABARD
The Budget intends to allocate Rs 10,000 crore to National Bank for Agriculture & Rural Development (NABARD) to set up a short-term regional rural bank (RRB) Credit Refinance Fund to enhance the capacity of RRBs to disburse short-term crop loans to the small and marginal farmers. In order to render kisan credit card (KCC) an effective tool for making agricultural credit available to the farmers, KCC scheme would be modified to make KCC a smart card which could be used at ATMs. In a bid to promote agricultural research the Finance Minister has proposed to allocate a sum of Rs 200 crore, besides putting into operation a Government-owned Irrigation and Finance Company to mobilise large resources to fund irrigation projects. Farmers hail this move as a salutary step provided the proposed firm focuses on bolstering rainwater harvesting through Jal Kunds, wastewater recycling and micro irrigation.
ongoing Integrated Development of Pulses Villages, Promotion of Nutri-cereals and Accelerated Fodder Development Programme would now become a part of this Mission. He further said that National Mission on Sustainable Agriculture including Micro Irrigation is being taken up as a part of the National Action Plan on Climate Change. The Rainfed Area Development Programme is to be merged in this Mission. The National Mission on Oilseeds and Oil Palm would increase production and productivity of oilseeds and oil palm, while in the new proposals, the National Mission on Agricultural Extension and Technology focuses on adoption of appropriate technologies by farmers for improving productivity and efficiency in farm operations. Alongside, the National Horticulture Mission would now also promote horticulture diversification including an initiative on saffron.
Protein Supplement
The Budget outlined that the Mission for Protein Supplement is being beefed up and with a view to improving the productivity in the dairy sector, an Rs 2242 crore project is being launched with assistance from the World Bank. In order to broaden the scope of production of fish to coastal aquaculture, apart from fresh water aquaculture, the outlay in 2012-13 is being augmented to Rs 500 crore, while adequate allocations are also being ensured for poultry, piggery and goat rearing in order to help rural people to bank on this subsidiary livelihood practice. For rural development, the budgetary outlay for rural drinking water and sanitation is proposed to be raised from Rs 11,000 crore in the fiscal 2011-12 to Rs 14,000 crore in 2012-13 in order to fight the scourge of malnourishment as weak sanitation coupled with unhygienic water quality continue to plague the poor. As Pradhan Mantri Gram Sadak Yojana (PMGSY) turned out to be a triumphal scheme, the Budget has raised the allocation to this important job-oriented and rural-development programme by 20 per cent
Kurukshetra April 2012
Green Revolution
It may be noted that among the benefits of the earlier initiatives which are to be unified, mention ought to be made of a modest start to bring the green revolution to eastern India. The Budget has augmented the allocation for this scheme to Rs 1000 crore from Rs 400 crore in fiscal 2011-12. In outlining the agenda for agriculture, the Finance Minister declared revamping of five missions to merge various activities into set of missions to address the pressing needs of peasantry and to promote agricultural and rural development in a holistic fashion. Thus the National Food Security Mission aims to bridge the yield gap in respect of paddy, wheat, pulses, millet and fodder. The
4
by providing Rs 24,000 crore. This will definitely improve connectivity in the States and bring them into the mainstream of markets both in semi-urban and urban conurbations.
Panchayats
As the third tier of local bodies is crucial for grassroots development, a major initiative proposed in the Budget is to underpin Panchayats across the country through Rajiv Gandhi Panchayat Sashakitkaran Abhiyan (RGGPSA) to expand the existing schemes for Panchayat capacity-building. In consonance with the last years budget focus on the development of backward regions, the Budget has decided to carry the Backward Regions Grant Fund scheme into the12th Plan with an enhanced outlay of Rs 12,040 crore in 2012-13, an increase of over 22 per cent over budgeted 2011-12 outlay. This covers the State component which includes projects in backward areas in Bihar, West Bengal and Kalahandi-Bolangir-Koraput region of Odisha, development projects for drought mitigation in the Bundelkhand region and projects under the Integrated Action Plan to expedite the pace of development in selected tribal and backward districts.
by over 34 per cent from Rs 2914 crore in 201112 to Rs 3915 crore in 2012-13.Last year budget announced the creation of a Womens Self-Help Groups (SHG) development fund with a corpus of Rs 100 crore. The Finance Minister announced in 2012-13 budget to provide Rs 200 crore more to enlarge the corpus to Rs 300 crore. This fund will also bolster the objectives of Aajeevika, i.e., the National Rural Livelihood Mission by empowering women SHGs to access bank credit. It is further proposed to provide interest subvention to women SHGs to avail loans up to Rs 3 lakhs at 7 per cent per annum. WomenSHGs that repay loans in time would get additional three per cent subvention, reducing the effective rate to 4 per cent. The new initiative, in the first phase, would focus on selected 600 blocks of 150 districts across the country, including the Left Wing extremisms-hit districts. Taking a broader canvas, the Union Budget 2012-13 has allocated Central Plan outlay to the Department of Rural Development a massive sum of Rs 73,175 crore to undertake various special programmes for rural development, rural employment, rural housing and roads and bridges being managed by the Ministry of Rural Development. Coupled with the enhanced allocation to agriculture, the budget has chalked out a refreshingly new path to translate the various ongoing programmes into tangible benefits to the farmers in general and rural people in particular. In fine, as the Government assumes the economic growth rate to go up from the estimated 6.9 per cent in fiscal 2011-12 to 7.6 per cent based on the various enabling measures put in place in the budget for the economy to gain traction, the resultant growth benefits would help harness resources in a more purposive fashion to undertake development works in rural areas with redoubled verve and vigour, economists and analysts unanimously say. (The author is a Senior Journalist based in New Delhi)
5 5
Infrastructure
The Budget makes a proposal to step up the allocation under Rural Infrastructure Development Fund (RIDF) to Rs 20,000 crore. As the farmers mostly suffer for want of adequate storage amenities with most of the produce getting rotten and wasted, the budget has proposed to earmark Rs 5000 crore from this enhanced allocation of RIDF exclusively for fostering warehousing facilities under RIDF. As rural women suffer for want of adequate opportunities to express themselves in various livelihood undertakings, the Budget has proposed to step up the allocation to the subcomponent, Mahila Kisan Sashakikaran Pariyojana under the National Rural Livelihood Mission (NRLM)
A Quick Review from Rural Livelihood Perspective

Dr. K. K. Tripathy
he Economic Survey 2011-12, released a day prior to the presentation of Union Budget 2012-13 indicated that the Indian economy is going to experience a slump in the growth rate primarily due to the deceleration in the growth of the Indian industry. While during the two preceding years (2009-10 and 2010-11), Indias Gross Domestic Product (GDP) grew by 8.4 per cent, the economic growth during 2011-12 was estimated at 6.9 per cent. The Union Budget 2012-13 was presented amidst uncertainties in the global economic environment (especially, in the Eurozone), prevailing weaknesses in the industrial activity, rising fiscal deficits and growing cost of credit along with weak domestic business environment. In this backdrop, it was expected that the Budget 2012-13 would strive to bridge the development
Union Budget 2012-13:
deficits in the social sector not only by stepping up public expenditure on the social sector schemes/programmes but also by ensuring the quality of expenditure backed by revamped governance system at the grass-root level of their implementation.
Addressing Growth Issues

The Indian economy has survived from the global slowdown of 2008 and has witnessed a resilient growth rate in GDP of around 8 per cent during the last three years. However, an average rate of 3.3 per cent growth during the 11th Five Year Plan (2007-08 to 2011-12) in the agriculture and allied sector indicates that Indian agriculture has been entangled in a low growth equilibrium trap and may not achieve the target of a 4 per cent annual growth rate during the 11th Plan period. Further, deceleration of agri and allied
Kurukshetra
April 2012
sector-growth by 4.5 per cent (from 7 per cent during 2010-11 to an estimated growth rate of 2.5 per cent during 2011-12) indicates the extant vulnerability of the countrys agriculture.
Rural Livelihood
Pre-Budget media expectations rightly predicted the Governments stress on revamping rural infrastructure, improving rural development initiatives and enhancing substantially the outlays for rural development. The Budget 2012-13 has stressed on improving Indias agriculture, taking steps for consolidating efforts on rural development and social sectors including removal of supply side bottlenecks in rural economy. This marks a relatively high gross budgetary support to agriculture than rural development. The total plan outlay for the Department of Agriculture and Cooperation is increased by 18.6 per cent from Rs. 9,262 crore during 2011-12 to Rs. 10,991 crore during 2012-13. The 2012-13 budget allocation (Rs. 73,175 crore) for Department of Rural Development has witnessed 1.25 per cent reduction as compared to the budget estimates of 2011-12 (Rs. 74,100 crore). The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) contributed 54 per cent of the total budget allocation for Department of Rural Development during 2011-12. During 2012-13, the share of MGNREGA (Rs. 33,000 crore) has been reduced to 45 per cent in the total budget allocation for the department.
The enactment and implementation of a right-based MGNREGA has undoubtedly marked a paradigm shift from the existing wage employment programmes. This is primarily to be achieved by taking up project-oriented activities covering works on water conservation/harvesting, drought/ flood control, plantation, land development, rural connectivity, etc. During 2011-12, the revised estimate for MGNREGA is pegged at Rs. 31,000 crore which is Rs. 9,000 crore less than the Budget Estimate. This indicates that this wage employment programme has stabilized in its operation and absorption in rural areas. The budget estimate for 2012-13 in case of MGNREGA is kept at Rs. 33,000 crore. The need of the hour is to improve quality of assets created and to bring about synergy between MGNREGA and agriculture and allied rural livelihoods. This endeavour will not only uplift the under-privileged and socially and economically vulnerable, but also support in making the agriculture a viable occupation As far as rural self-employment programme is concerned, during 2012-13 Aajeevika will have an outlay of Rs. 3,915 crore (including Rs. 351.50 crore allocation for North Eastern Region) against the previous years outlay of Rs.2,914 crore. This programme covers all aspects of self-employment starting from organisation of the poor into selfhelp groups (SHGs) to building their capacities, federating these groups for better targeting, provisioning market infrastructure, credit/subsidy linkage and skill up-gradation and technology development. The target groups are the poor living below the poverty line. Thus, the hike in the budget outlay for Aajeevika was much-needed to help in establishing a large number of micro-enterprises in rural areas and to effectively achieve the goal of poverty alleviation. A timely convergence between Aajeevika and MGNREGA would help in extending skill training to rural households living on unskilled manual activities.
7 7
Rural Employment
The 2012-13 plan allocation for MGNREGA has been reduced by 17.5 per cent whereas Aajeevika (earlier National Rural Livelihood Mission) has registered 34.35 per cent hike in budget allocation in 2012-13 against the Budget Estimates of 2011-12.
It is well-documented that the provision of adequate livelihood security to the economically vulnerable sections of the country has not been commensurate with the magnitude of resource inputs of the series of poverty alleviation and employment generation programmes since independence. Aajeevika, that seeks to harness the inherent potential of the rural poor by organising them into small and cohesive groups and providing requisite infrastructure support for their income generation, needs to resolve various shortcomings in implementation and administrative mismanagement which reduce the effectiveness of the programme. The main problem areas requiring policy attention are the coordination amongst field level agencies, the appropriate selection of economic activities, mapping skills and improving skills and the promotion of quality SHGs and their federations.
and stay in rural areas, the governments prime objective has been directed towards ensuring an inclusive economic growth where benefits of economic growth are to percolate to the poor and underprivileged. In this context, Union Budget 2012-13 entails the enhancement of agricultural credit flow, revitalising agriculture extension, training and research, providing employment to the needy and creating durable agri-related productive assets, ensuring empowerment of the poor, bringing more children under the purview of formal education and improving rural health care initiatives. The Union Budgets of the government during 2007-08 to 2012-13 had witnessed an impressible improvement in the expenditure on priority social sectors viz. education, health, water and sanitation, irrigation, housing and employment which have a direct and lasting impact on the human development and overall economic growth. Various studies and review reports on Government sponsored development programmes are unanimous regarding the implementation flaws at the grass-root level. It is, thus, expected that the Government has to strengthen its implementation and monitoring mechanism to ensure financial and operational sustainability. Post-Budget special and targeted efforts are needed to resolve issues like removing capacity constraints in the grass-root level democratic institutions and promoting their involvement in converging the benefits of various development interventions and infrastructurebuilding initiatives aiming at poverty alleviation, gainful employment generation and social security. (The author is an officer of Indian Economic Service and is Director in the Ministry of Rural Development. Views expressed are personal. E-mail: tripathy123@rediffmail.com)
Rural Credit and Financial Inclusion

Recent rise in cost of credit not only impacted the domestic industries but also added to the overall agriculture cost of production. The target set for agricultural credit is at Rs. 5.75 lakh crore in the next year. This is 21 per cent higher than the target fixed for 2011-12. The interest subvention on short term crop loans at 7 per cent interest per annum will continue in 2012-13. In addition, an additional interest subvention of 3 per cent will be applicable for non-defaulting farmers. This will have a positive impact on the repayment behavior of the millions of borrowing small and marginal farmers. Modification of Kisan Credit Cards into a smart and ATM enabled card and revamping Regional Rural Banks will help in removing supply side rigidities in one of the important agri-inputs of Indian agriculture.
Conclusion
About two-thirds of the total countrys population live on agriculture and allied activities
8
CRITICAL REVIEW OF THE UNION BUDGET 2012-13

Dr. Yashbir Singh Shivay and Anshu Rahal
Plan Outlay for Department of Agriculture and Co-operation increased by 18 per cent i.e. from Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13. ross domestic product (GDP) is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. Slowdown in comparison to preceding two years is primarily due to deceleration in industrial growth and also due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. Indias GDP growth in 2012-13 expected to be 7.6 per cent +/- 0.25 per cent. Agriculture has been a way of life and continues to be the single most important livelihood of the masses. Agricultural policy focus in India across decades has been on self-sufficiency and selfreliance in foodgrains production. Considerable progress has been made on this front. Foodgrains production rose from 52 million tonnes in 1951-52 to 244.78 million tonnes in 2010-11. The share of agriculture in real GDP has fallen given its lower growth rate relative to industry and services.
However, what is of concern is that growth in the agricultural sector has fallen short of the Plan targets. During the period 1960-61 to 2010-11, foodgrains production grew at a compounded annual growth rate (CAGR) of around 2 per cent. In fact, the Ninth and Tenth Five Year Plans witnessed agricultural sectoral growth rate of 2.44 per cent and 2.30 per cent respectively compared to 4.72 per cent during Eighth Five Year Plan. During the current Five Year plan, agriculture growth is estimated at 3.28 per cent against a target of 4 per cent. The Approach Paper to the Twelfth Five Year Plan emphasises the need to redouble our efforts to ensure that 4.0 per cent average growth is achieved during the Plan if not more. Without incremental productivity gains and technology diffusion across regions, achieving this higher growth may not be feasible and has implications for the macroeconomic stability given the rising demand of the 1.21 billion people for food. Achieving minimum agricultural
Kurukshetra
April 2012
growth is a pre-requisite for inclusive growth, reduction of poverty levels, development of the rural economy and enhancing of farm incomes.
are being implemented for enhancing agricultural production and productivity in the country and increasing the income of the farming community.
Major emphasis for agriculture sector in Union Budget 2012-13

Agriculture including allied activities, accounted for 14.5 per cent of gross domestic product at 2004-05 prices, in 2010-11 as compared to 14.7 per cent in 2009-10. Notwithstanding the declining trend in agricultures share in the GDP, it is critical from the income distribution perspective as it accounted for about 58 per cent employment in the country according to Census 2001. Hence growth in agriculture and allied sectors remains a necessary condition for inclusive growth. In terms of composition, out of the total share of 14.5 per cent that agriculture and allied sectors had in GDP in 2010-11, agriculture alone accounted for 12.3 per cent, followed by forestry and logging at 1.4 per cent and fishing at 0.7 per cent. Reasonable growth in agriculture is important both from the nutritional point of view as well as to control food prices and overall headline inflation. Considering the importance of agriculture in the Indian economy, Union Budget 2012-13 proposes to increase by 18 per cent from Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13 as the total plan outlay for the Department of Agriculture and Cooperation. This step is a praiseworthy and long awaited of the Honourable Union Finance Minster for the overall growth and development of the agriculture and allied sectors in particular and inclusive growth in general.
Rashtriya Krishi Vikas Yojana (RKVY)

The RKVY was launched in 2007-08 with an outlay of Rs 25,000 crore in the Eleventh Plan for incentivizing states to enhance public investment to achieve 4 per cent growth rate in agriculture and allied sectors during the Eleventh Five Year Plan period. The outlay for Rashtriya Krishi Vikas Yojana (RKVY) has been increased from Rs 7,860 crore in 2011-12 to Rs 9,217 crore in 2012-13 Union Budget by the honourable Finance Minister, Mr. Pranab Mukharjee. It will have significant impact on increased agricultural production and productivity in the long run.
Initiative of Bringing Green Revolution to Eastern India

The Green Revolution in Eastern Region is waiting to happen and to realize the potential of the region; last years initiative will be continued in 2012-13 with a further allocation of Rs Rs1,000 crore in 2012-13 from Rs 400 crore in 2011-12. The program would target the improvement in the rice-based cropping systems of Assam, West Bengal, Orissa, Bihar, Jharkhand, Eastern Uttar Pradesh and Chhattisgarh. The initiative of Bringing Green Revolution to Eastern India has resulted in a significant increase in production and productivity of paddy. States in eastern India have reported an additional paddy production of seven million tonnes in Kharif 2011, which is good sign for second green revolution to be happening in the near future.
Allocation of funds for the Major Schemes / Programmes in Agriculture Sector

Agriculture being a state subject, the primary responsibility for increasing agriculture production, enhancing productivity, and exploring the vast untapped potential of the sector rests with the state governments. However, in order to supplement the efforts of the state governments, a number of centrally sponsored and central-sector schemes
10 10
Vidarbha Intensified Development Programme
Irrigation
Irrigation is one of the most important inputs required at different critical stages of plant growth of various crops for optimum production. The Government of India has taken up augmentation of irrigation potential through public funding and
is assisting farmers to create potential on their own farms. Substantial irrigation potential has been created through major and medium irrigation schemes. While the higher irrigation potential would help augment production and productivity, assured remuneration from such production is vital for development of agriculture. This year, under RKVY, the honourable Union Finance Minister allocated Rs 300 crore to Vidarbha Intensified Irrigation Development Programme. This Scheme seeks to bring in more farming areas under protective irrigation.
National Mission for Protein Supplements

The consumption of foods rich in animal protein and other nutrients has risen of late, with demand growing faster than production. To improve productivity in the dairy sector, a Rs 2,242 crore project is being launched with World Bank assistance. The National Mission for Protein Supplements was being launched in 2011-12 with an allocation of Rs 300 crore. Mission for Protein Supplement is being further strengthened and to broaden the scope of production of fish to coastal aquaculture, apart from fresh water aquaculture, the outlay in 2012-13 is being stepped up to Rs 500 crore. Suitable allocations are also being made for poultry, piggery and goat rearing. This is a timely taken step by the Union Finance Minister in the present increased demand driven era.
Accelerated Irrigation Benefit Programme

The central government initiated the Accelerated Irrigation Benefit Programme (AIBP) from 1996-97 for extending assistance for the completion of incomplete irrigation schemes. Under this programme, projects approved by the Planning Commission are eligible for assistance. Under the AIBP, Rs 50,380.64 crore of central loan assistance (CLA)/grant has been released up to 30 November 2011. As on 31 March 2011, 290 projects were covered under the AIBP and 134 completed. During 2010-11, an irrigation potential of 566.24 thousand ha is reported to have been created by states, from major / medium / minor irrigation projects under the AIBP. While the higher irrigation potential would help augment production and productivity, assured remuneration from such production is vital for development of agriculture. Structural changes in AIBP being made to maximise flow of benefit from investments in irrigation projects. Allocation for AIBP in 2012-13 stepped up by 13 per cent to Rs 14,242 crore. Irrigation and water resource finance company being operationalsed to mobilise large resources to fund irrigation projects. A flood management project approved by Ganga Flood Control Commission at a cost of Rs 439 crore for Kandi sub-division of Murshidabad District was also announced by the honourable Union Finance Minister in his Union Budget 201213 speeches.
Agriculture Credit
Agricultural credit plays an important role in improving agricultural production and productivity and mitigating distress of farmers. Government has taken several measures for improving agricultural credit flow and bringing down the rate of interest on farm loans. Initiative has been taken to provide kisan credit cards (KCC) to all eligible and willing farmers in a time-bound manner. The scheme includes reasonable components of consumption credit and investment credit within the overall credit limit to provide adequate and timely credit support to farmers for their cultivation needs. About 10.78 crore KCCs had been issued up to October 2011. KCC scheme will be modified to make KCC a smart card which could be used at ATMs. Union Finance Minister proposed to raise the target for agricultural credit in 2012-13 to Rs 5,75,000 crore. This represents an increase of Rs 1,00,000 crore over the target for the current year i.e. 2011-12. The interest subvention scheme for providing shortterm crop loans to farmers at 7 per cent interest per annum will be continued in 2012-13. An additional subvention of 3 per cent will be available to prompt paying farmers. In addition, the same interest
11 11
subvention on post harvest loans up to six months against negotiable warehouse receipt will also be available. This will encourage the farmers to keep their produce in warehouses. In addition to the above-mentioned facility a short-term RRB Credit Refinance Fund is being setup to enhance the capacity of Regional Rural Banks to disburse short term crop loans to the small and marginal farmers. Union Finance Minister proposed in his Union Budget 2012-13 to allocate Rs 10,000 crore to NABARD for refinancing the RRBs through this fund.
change. Honourable Union Finance Minister proposed to set aside a sum of Rs 200 crore for incentivising research with rewards, both for institutions and the research team responsible for such scientific breakthroughs. It is a bold and timely taken decision by the Central Government to meet out climate resilient agriculture.
Subsidy provision for fertilizer sector

Endeavour to keep central subsidies under 2 per cent of GDP in 2012-13 for all the applicable sectors. Over next 3 year, to be further brought down to 1.75 per cent of GDP. Based on recommendation of task force headed by Shri Nandan Nilekani, a mobile-based Fertilizer Management System has been designed to provide end-to-end information on movement of fertilisers and subsidies. In this budget Government has taken steps to finalise pricing and investment policies for urea to reduce Indias import dependence in urea. To reduce Indias import dependence in urea, Government has taken steps to finalise pricing and investment policies for urea. It is expected that with the implementation of the investment policy, country will become self sufficient in manufacturing urea in the next five years. In case of the potassic-phosphatic (P&K) fertiliser, use of single super phosphate (SSP) will be encouraged through greater extension work. This fertiliser is manufactured entirely in the domestic sector. Enhanced production would bring down our dependence on imports in the P&K sector.
National Mission on Food Processing

The food processing sector has been growing at an average rate of over 8 per cent over the past 5 years. In order to have a better outreach and to provide more flexibility to suit local needs, it has been decided that a new centrally sponsored scheme titled National Mission on Food Processing would be started, in cooperation with the State Governments in 2012-13.
Storage Capacity and Cold Chains

The Government has taken steps to create additional foodgrains storage capacity in the country. Augmentation of storage capacity through private entrepreneurs and warehousing corporations has been fast tracked capacity will be eligible for viability gap funding of the Finance Ministry. Creation of 2 million tonnes of storage capacity in the form of modern silos has already been approved. Nearly 15 million tonnes capacity is being created under the Private Entrepreneurs Guarantee Scheme, of which 3 million tonnes of storage capacity will be added by the end of 2011-12 and 5 million would be added next year i.e. 2012-13.
Agricultural Institutions that are being given grants

The driving force of a modern nation is research and the creation of new knowledge and considering this important view in mind the Honourable Union Finance Minister made an allocation of funds in his budget 2012-13 to the following agricultural institutions / universities for strengthening of their research, teaching and extension activities:

Agricultural Research
Food security and agricultural development in the coming decades would depend upon scientific and technological breakthroughs in raising productivity. We have to develop plant and seed varieties that yield more and can resist climate
12 12
Rs 100 crore to Kerala Agricultural University

Rs
50 crore for University of Agricultural Sciences Dharwad, Karnataka

Rs 50 crore to Chaudhary Charan Singh Haryana
Agricultural University, Hissar 50 crore to Orissa University of Agriculture and Technology Rs 100 crore to Acharya N. G. Ranga Agricultural University in Hyderabad and Rs 25 crore to the Institute of Rural Management, Anand.
Rs
fully exempted from basic customs duty of 5 per cent for a period of three years up to March 31, 2015.
Key Features of Union Budget 2012-13 for Agricultural Sector

Plan
The allocation of the above-mentioned funds to these state agricultural universities / institutions will help not only to improve their infrastructures but also their overall out-put in terms of research, teaching and extension. The staff members / students / scientists of their respective universities will definitely appreciate the kind gesture of the Central Government.
Outlay for Department of Agriculture and Co-operation increased by 18 per cent i.e. from Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13. for Rashtriya Krishi Vikas Yojana (RKVY) increased to Rs 9,217 crore in 2012-13.
Outlay
Tax rebate to Agriculture and Related Sectors

Carrying forward the initiatives taken for agriculture and agro-processing in the previous Budgets, the Honourable Union Finance Minister in his budget 2012-13 proposed to reduce basic customs duty from 7.5 per cent to 2.5 per cent on sugarcane planter, root or tuber crop harvesting machine and rotary tiller and weeder and parts for the manufacture of these machinery / equipments. The Honourable Union Finance Minister also proposed to reduce basic customs duty from 7.5 per cent to 5 per cent on specified coffee plantation and processing machinery. Also to extended project import benefit to green house and protected cultivation for horticulture and floriculture at concessional basic customs duty of 5 per cent. He also proposed to reduce basic customs duty on some water soluble fertilisers and liquid fertilisers, other than urea, from 7.5 per cent to 5 per cent and from 5 per cent to 2.5 per cent. It was also proposed to extend concessional import duty available for installation of Mechanised Handling Systems and Pallet Racking Systems in mandis or warehouses for horticultural produce. Imports of equipment for initial setting up or substantial expansion of fertiliser projects are being

Initiative of Bringing Green Revolution to Eastern India (BGREI) has resulted in increased production and productivity of paddy. Allocation for the scheme increased to Rs 1,000 crore in 2012-13 from Rs 400 crore in 2011-12. Rs 300 crore to Vidarbha Intensified Irrigation Development Programme under RKVY.
Remaining activities to be merged into following missions in Twelfth Plan:

National National
Food Security Mission
Mission on Sustainable Agriculture including Micro Irrigation Mission on Oilseeds and Oil Palm
National
National Mission on Agricultural Extension and
Technology
National
Horticultural Mission
National Mission for Protein Supplement

v Rs
2,242 crore project launched with World Bank assistance to improve productivity in the dairy sector. Rs 500 crore provided to broaden scope of production of fish to coastal aquaculture.
Agriculture Credit
v
Target for agricultural credit raised by Rs 1,00,000 crore to Rs 5,75,000 crore in 2012-13.
13 13
Interest subvention scheme for providing short-term crop loans to farmers at 7 per cent interest per annum to be continued in 2012-13. Additional subvention of 3 per cent available for prompt paying farmers. Short-term RRB credit refinance fund being set up to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers.
Kisan
Full
exemption from basic customs duty for import of equipment for expansion or setting up of fertiliser projects up to March 31, 2015.
Challenges ahead and outlook of Indian agriculture

l The
Credit Card (KCC) Scheme to be modified to make KCC a smart card which could be used at ATMs by the Indian farmers.
Agricultural Research
A sum of Rs 200 crore set aside for incentivising research with rewards.
Irrigation
l Structural
changes in Accelerated Irrigation Benefit Programme (AIBP) being made to maximise flow of benefit from investments in irrigation projects. for AIBP in 2012-13 stepped up by 13 per cent to Rs 14,242 crore.
l
agriculture and allied sectors have made substantial progress in terms of production and productivity since the beginning of the Planning process. The successive Five Year Plans have emphasized growth in the agriculture sector, as a result of which foodgrains production reached a record level of 244.78 million tonnes in 2010-11. However, the challenges are far from over. Agricultural growth in the current Five Year Plan is expected to be less than the target. A number of supply-side constraints exist and thereby achieving the food and nutritional security is a challenge. In order to make 4 per cent agricultural growth a reality, adequate efforts are required to focus on addressing the challenges in this sector. has been declined in area under foodgrains in the last three decades. This calls for speedy improvement in yield in order to increase production through adequate investment in research and development. In yield parameters, India is lagging behind global levels in most crops. With very little growth in area and marginal growth in yields of many crops during the last decade, increasing agricultural production remains a challenge. A holistic approach, spanning agricultural R&D, dissemination of technology, and provision of agricultural inputs such as quality seed, fertilizers, pesticides, and irrigation, would help achieve higher levels of productivity. Access of small and marginal farmers to formal sources of agricultural credit is still inadequate, though the flow of agricultural credit has increased in the recent past. Effective coordination and monitoring of ongoing agriculture and allied sectors programmes need to be ensured for optimum results.
Allocation
There
Irrigation
and Water Resource Finance Company being operationalised to mobilise large resources to fund irrigation projects.
flood management project approved by Ganga Flood Control Commission at a cost of Rs 439 crore for Kandi sub-division of Murshidabad District.
National Mission on Food Processing

l
A new centrally sponsored scheme titled National Mission on Food Processing to be started in 2012-13 in co-operation with State Governments. Steps taken to create additional food grain storage capacity in the country.
Tax rebate Agriculture and Related Sectors

l Basic
customs duty reduced for certain agricultural equipment and their parts.
14 14
Mostly
Indian farmers are either small or marginal farmers with small and fragmented landholdings. The average farm size in the country has declined over the years. This poses a challenge in terms of adoption of farm mechanization as well as generating productive income from farm operation. Pooling of many landholdings may yield better economies of scale, for which land laws for leasing with sufficient safeguards in place should be considered. the present scenario the higher levels of purchasing power are supporting higher demand for protein rich food items. The country has to step up efforts for increasing production of milk and other dairy products, egg, poultry, fish, meat, etc. There have been increases in the prices of these items because supply has not kept pace with demand. India, the declining per capita availability of foodgrains has been a matter of great concern. For ensuring nutritional security, it is not only important to increase per capita availability of foodgrains but also to ensure that right quantities of food items are there in the food basket of the common man. A thrust on horticulture products is required for enhancing per capita availability of food items as well as ensuring nutritional security.
In
facility would help reduce post-harvest losses. Adoption of modern farm implements and tools especially by small farmers is still low because of their lack of resources. This, in turn, hampers the development of the agriculture sector. Addressing infrastructure requirements in the agriculture sector, especially storage, communication, roads, and markets should be a priority. Public private partnership models can be of help in ensuring faster development of these requirements which are of vital importance for the growth of the agriculture sector.
l There
In
Still
majority of the Indian agriculture is dependent on the monsoon. This adds to the risks a farmer faces. The dependency of the Indian farmer on the monsoon has to be reduced largely by increasing the irrigation facilities. Climate change and extreme weather conditions impacting agriculture; there is need to devise insurance schemes linked to indices of various vulnerability parameters. The insurance policy framework needs to be dynamic, incorporating the perspectives of the insured, insurers, and public policy so that it covers a large section of population. storage capacity is a major problem presently facing the country. Adequate storage
April 2012
is an urgent need for improvement is the generation of real-time market intelligence and also agricultural market reforms. Enhancing the returns farmers get on their production is essential for incentivizing them to produce more. Farmers need to realize the market price for their produce. Setting up of efficient supply chains is essential not only for ensuring adequate supplies of essential items at reasonable prices but also so that producers get adequately compensated. Linking farmers to the market is, therefore, very important. The successful experience of cooperatives in the milk sector in managing the supply chain and providing remunerative prices to the producers may be emulated in the case of agricultural products. to many western countries, the level of secondary food processing in India is very low. With increasing income and population, demand for processed food is likely to increase. It is necessary to cater to this changing demand and at the same time enhance the income of farmers. So far the focus in food management has been on cereals, mainly rice and wheat. However, the demand for processed food is expected to increase. Investment in food processing, cold chains, handling, and packaging of processed food needs encouragement.
15 15
Compared
The
Kurukshetra
Over
the last few years there has been substantial increase in the minimum support prices (MSPs) of various crops. This is considered necessary for incentivizing farmers to increase production and productivity. At the same time, the MSP signals the floor price for the produce which, in turn, has the potential of increasing prices. Addressing the welfare of agricultural producers and consumers simultaneously poses a challenge. Further, inability of a large number of small and marginal farmers to directly access the agriculture market puts a question mark on increases in MSP actually benefiting such farmers. Record procurement of rice and wheat in the last few years has helped build up the buffer stock and strategic reserve of wheat and rice. There is, however, a huge cost involved in the process, in the form of food subsidy. The issue of efficient food stocks management and offloading of stocks in time needs urgent attention. all the above-mentioned problems, there is an urgent need to address
the challenges of the agriculture sector through comprehensive and coordinated efforts directed at improving farm production and productivity of foodgrains as well as high value crops, developing rural infrastructure, renewing thrust on the irrigation sector, strengthening marketing infrastructure, and supporting investment in research and development (R&D) of agriculture and allied disciplines with due emphasis on environmental considerations. We are sure that these efforts will in time rejuvenate agriculture sector and bring about increased inclusive growth of the Indian economy. (The first author is Principal Scientist, Division of Agronomy, Indian Agricultural Research Institute, New Delhi 110012, ysshivay@hotmail. com; ysshivay@iari.res.in; Second author is an assistant Professor, Department of Animal Nutrition, College of Veterinary and Animal Sciences, G. B. Pant University of Agriculture & Technology, Pantnagar 263145, Uttarakhand, anshurahal@rediffmail.com)
Considering
SUBSC R I PT I ON COUPON
(For New Membership/Renewal/Change in Address
I want to subscribe to_________________________________________(Journals name & language) for 1 yr. for Rs. 100/2 yrs for Rs. 180/3 yrs. for Rs. 250/-
DD/IPO/MO No. ________________________________________________Date____________________ Name (in block letters) Address
Please send DD/IPO/MO to Business Manager Publication Division, East Block, Level-VII, R. K. Puram, New Delhi-110066. Tel. : 26105590, 26100207, Fax : 26175516 Also ensure that it is drawn in favour of Director Publication Division, Ministry of Information and Broadcasting, New Delhi.
PIN
Note: For Renewal/change in address-please quote your Subscription No. Please allow 8 to 10 weeks for the despatch of the 1st issue.
16 16 Kurukshetra April 2012
THE BUDGET AND RURAL DEVELOPMENT

Dr. Shahin Razi, Associate Professor
he Finance Minister, Mr. Pranab Mukherjee has presented a credible and prudent budget. This is commendable considering the multiple headwinds, by way of an anaemic global recovery, persistent high oil prices, lower than budget tax revenues, sharp movements in the rupee exchange rate and stubborn inflation during much of the year, resulting in high interest rates. The compulsion of managing a coalition government, no doubt, also narrowed policy options. The Budget 2012 seeks to revive the growth momentum in the economy with a focus on infrastructure development, agriculture and rural economy and inclusive growth. The Budget 2012 focuses on rural development with a moderate hike in allocation, but the government has downsized in a big way the importance of its flagship programme, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). For the scheme entitling jobs to below poverty line (BPL) households in rural areas, the allocation has been reduced by 17.5 per cent to only Rs.
33,000 crore in the next financial year from Rs. 40,000 crore in 2011-12. The reduction comes against the backdrop of the poor performance of the scheme and demands by the Agriculture Ministry, which the Economic Survey released on Thursday echoed, for a moratorium during agriculture season on the ground that it deprived availability of labour. Finance Minister Pranab Mukherjee has also revised the current years allocation to Rs. 31,000 crore, a tad higher than the release of just Rs. 24,722 crore till February-end, while the expenditure by the States stand at Rs. 24,106 crore. Only 4.09 crore households have been provided with jobs till midFebruary, against the 5.49 crore households that availed jobs under the scheme in 2011-12. Notwithstanding this cut, the allocation for various programmes that spearhead rural development has been increased to Rs. 98,900 crore from Rs. 91,301 crore in 2011-12 for a 6 per cent increase by Rs. 7,599 crore. This budgetary allocation is next only to the allocation to the Defence Ministry.
17
Kurukshetra
April 2012
17
Minister of Rural Development Jairam Ramesh clarified that the government was committed to meeting any demand for job and money would be provided as and when required by the States. He maintained no jobs would be denied and the demand could have gone down because of good monsoon and the lack of capacity of the gram panchayats to spend the money demanded under the labour budget proposed by the States, which too could have been overestimated.
allocation to the National Rural Livelihood Mission, which is likely to be renamed as Aajeevika has been increased by 34 per cent from Rs. 2,914 crore in 2011-12 to Rs. 3,915 crore next year. The government proposes to set up a Bharat Livelihoods foundation of India to support and scale up civil society initiatives in 170 tribal districts. Private trusts and organisations will contribute to the corpus to be set up with an initial government contribution of Rs. 500 crore. Mr. Ramesh said he would be ensuring a private contribution of a similar amount and the interest earned will be used to help NGOs. The Centre has decided to provide loans upto Rs. 3 lakh to women SHGs at a subsidized rate of 7 per cent and an additional subsidy of 3 per cent to those who return it timely. In the first phase, it will be implemented in 600 blocks of 150 districts, including the left-wing extremism affected districts. On the social security front, the government has increased the pension of widows and disabled persons from Rs. 200 to Rs. 300 a month under the Indira Gandhi National Widow Pension Scheme and the Indira Gandhi National Disability Pension Scheme for BPL beneficiaries. Both the schemes are covered under the National Social Assistance Programme, the allocation for which has been enhanced by 37 per cent from Rs. 6,158 crore to Rs. 8,447 crore in 2012-13 to meet the raised pension. Overall the union budget adopts a pragmatic approach towards addressing the needs of the economy and managing the fiscal position. Continued incentives to critical sectors emphasize the governments focus on growth. In the long term the fundamental strengths of the Indian economy coupled with appropriate fiscal policies and investments in key sectors should take India to a higher growth trajectory. (The author is Associate Professor, Reader, PG Department of Economics And Dean of the Faculty of Arts, Jamshedpur Womens College, e-mail : shahin.razi@gmail.com)]
Drinking Water
The budget concentrates on drinking water and sanitation, construction of rural roads, houses, self-employment opportunities, including through self-help groups (SHGs) and increased pension for widows and disabled persons. For drinking water and sanitation, the allocation has been increased to Rs. 14,000 crore from Rs. 11,000 crore for a 27 percent increase, though for current year, the allocation has been revised downwards to Rs. 10,000 crore. The focus on cleanliness and providing toilets gained momentum in the light of the recent disclosure that about 50 per cent of the rural population practice open defecation that even affected their health. Mr. Rameshs thrust for supply of quality water has been accepted and the budget has sanctioned the establishment of a water quality center in Kolkata at an estimated cost of Rs. 50 crore. West Bengal has decided to provide 2.5 to 3 acre of land for the purpose. The allocation under the Pradhan Mantri Gram Sadak Yojana has been increased from Rs. 20,000 crore to Rs. 24,000 crore in 2012-13 for a 20 per cent hike to increase road connectivity in rural areas.
Rural Housing
For construction of rural houses under the Indira Aawas Yojana (IAY), the allocation has been increased by over 10 per cent to Rs. 10,000 crore from Rs. 9,000 crore. For the integrated watershed programme under the Land Resources Department, the allocation has been raised from Rs. 2,294 to Rs. 2,745 crore. The
18 18
Budgetary Allocation and its Utilization

MGNREGS- A Viewpoint
Dr. S.M Jawed Akthar, N.P. Abdul Azeez
The budget allocation has not been increased on the basis of the increase in the number of districts under MGNREGS. efore formalizing the Act, government agencies estimated that full coverage of MGNREGS will cost Rs. 400 billion (about US$ 9-10 billion) which was about 1 percent of GDP. Some empirical assessments suggest that MGNREGS could help reduce rural poverty to 23 per cent during lean season, at annual cost of 1.7 per cent of GDP (Murgai and Ravallion, 2005). Others based on simple average minimum wage aggregates of all states estimated the national annual cost to be 1.3 percent of GDP; and a case was made that MGNREGS will be sensitive to prevailing minimum wages in respective states (Shariff, 2004). Earlier wage employment programmes that sought to guarantee were constrained by the lack of budget funds, and, so instead of a legal guarantee, assurances alone could be offered. It is possible that the confidence of the government to commit funds was inspired by a higher growth rate
of economy; but the significant point here is that even when the economy slowed down as a result of the global meltdown, the budgetary support to MGNREGS did not decline.. The Table-1 shows budgetary allocation of funds reflecting a steady increase from 11300 crores in 2006-07 to 40100 crores in 2010-11. However the following years the budgetary allocation has comedown which, of course, will adversely affect the implementation of the MGNREGS.
Financial Performance:
The Act stipulates that while implementing the projects, labour cost and material cost should be in the ratio 60:40. This ratio should be applied preferably at the Gram Panchayat, Block and District levels. For smooth implementation, the engineer is required by the law to visit the work site at least once in two weeks and the overseer is to visit every
19
Kurukshetra
April 2012
19
Table 1: Financial Allocation of MGNREGS

Year Budget Allocation (crore) 11300 12000 30000 39,100 40,100 40,000 33,000 Percentage of GDP MGNREGS Exp. as MGNREGS Exp. MGNREGS Exp. % of Total as % of Revenue as % of Fiscal Expenditure Receipts Deficit 1.2 1.5 1.6 2.7 2.8 3.1 2.2 1.6 1.9 2.0 4.4 4.1 5.0 3.0 6.10 10.0 10.8 9.21 9.01 9.70 6.42 MGNREGS Exp. as % of Rural Development 46.55 41.71 52.77 69.08 55.63 53.98 33.33
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
0.28 0.26 0.56 0.66 0.54 1.02 0.78
Source: Budget Documents, Government of India.
day. In spite of this guideline, the overseer did not visit the work site as stipulated, and the visits of the engineers were also very few and far in between. Tools and implements may be procured to enable the workers to execute the work. The cost of tools and implements may be booked under the material component of the project. State governments should devise a mechanism for transparent method of procurement of materials to be used under MGNREGA. The central government provides the funds for the wages and for 3/4th of the material costs. The State Government pays for th of the material cost. The actual percent of expenditure on wage, material and other administrative expenditure in various years are shown the table-2 Table 2: Utilisation of Fund under MGNREGS (Percent)
Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Expenditure on Wages 66.21 68.54 69.27 69.77 68.36 76.39 Expenditure Administrative on Material Expenditure 30.89 30.58 30.08 30.23 31.64 23.61 2.09 3.12 3.48 3.29 4.57 3.69
and expenditure on administration of MGNREGS has some slight variation. The expense on wages (skilled and unskilled), material and administration in different states shows the same trend. In the five states where data was available, the payment on wages was nearly 70 percent, and that on material was around 30 percent. The other contingency expenses were around 1 percent, except in the case of Uttar Pradesh, where contingency expenses were slightly above 2 percent.
State Expenditures and Household Wage Accruals:

A state-wise break-up of utilization shows that while most states have managed to utilize over 55-60 percent of allocated funds, some, such as Maharashtra, Jammu and Kashmir, and Arunachal Pradesh among others, have used less than 50 percent. Data from the Rural Development Ministry shows that funds utilisation till June by Assam has improved 200 percent compared with the same period last year. Maharashtras utilisation has risen by 60 percent. A look at the total expenditures suggests that Madhya Pradesh, Andhra Pradesh and Rajasthan have distributed Rs. 10-17 billion as wage payments followed by Uttar Pradesh, Chhattisgarh, West Bengal and Bihar, with the utilized amounts ranging between Rs. 5 and 10 billion each. Notwithstanding a considerable variation in MGNREGS wage which ranges between high levels of Rs. 166 in Haryana, Rs. 150 in Kerala, and Rs. 120 in Rajasthan and Uttar Pradesh each, and a
www.mgnrega.nic
If we look at the Table-2 we can understand that the percentage of MGNREGS fund on wage is higher than that of defined ratio. The share of expenditure on wage has increased from 66.21 percent in 200607 to 76.39 percent in 2011-12, while with share of expenditure on material has been reduced
20 20
low of just over Rs. 100 in many of the remaining states; the average accruals per household has been the highest at Rs. 7733 in Rajasthan, Rs. 6862 in Haryana, Rs. 5383 in Madhya Pradesh and Rs. 4032 in Chhattisgarh. The amount of wage accruals is a meagre of Rs. 1795 in Bihar, Rs. 1549 in Gujarat, Rs. 1981 in West Bengal, Rs. 2726 in Maharashtra, and Rs. 3327 in Uttar Pradesh. Three states, namely, Madhya Pradesh, Rajasthan and Chhattisgarh, again stand out in terms of the annual size of wage accruals; followed by Andhra Pradesh and Jharkhand. The two relatively backward states that are not performing well are Bihar and Uttar Pradesh. Three states have sought more funds under the governments rural employment scheme to meet a surge in demand for jobs from farm hands affected by fluctuation in monsoon rains. Poor rainfall in Maharashtra, Jharkhand and Assam has dried up farm work, compelling farm workers to turn to the MGNREGS. Enrolments under MGNREGS, initiated primarily to ensure livelihood in lean farm seasons, are usually low during monsoons, which overlaps with the peak farm season. But with more job seekers, these states have overshot their estimates of work demand under MGNREGS for the first three months of the current fiscal, forcing them to seek more funds from the centre. Rainfall has not been that good in some areas and some of the states have come together for an upward revision in the initial estimates.
one would have expected in poor states that has largely to do with implementation and funding. The MGNREGA provides for a multi-tier structure of authority for implementation and monitoring of the scheme with specified functions and duties for each authority. Although there are various agencies involved for implementation of the scheme, the Gram Panchayat is responsible for all other works related to planning and implementation. The responsibility of the gram panchayat is the identification, execution and supervision of projects as per the recommendations of Gram Sabha (village assembly). For accountability and transparency purposes, the Gram Sabha is given the power to conduct a regular social audit of individual schemes. The authority entrusted with the implementation as laid down indicates that a coordinated approach of different tiers of governments or vertical coordination is critical for successful implementation of the scheme. Also, the horizontal coordination across departments for programme identification and execution of work through the panchayat assumes critical importance. These do not seem to be working too well. As specified in the Act, for the purpose of funding and the implementation of this scheme, the central government will set up a National Employment Guarantee Fund. Individual state governments will also set up their State Employment Guarantee Fund to make a matching contribution under this scheme. The funding pattern as laid down in the Act specifies that the centres obligation would be to bear the cost on the items which includes the entire cost of wages of unskilled manual workers, 75 percent of the cost of material of wages of skilled and semi21 21
Financial Implementation Issues:

It is also surprising to find that this scheme has not been able to provide the employment that
skilled workers, administrative expenses as may be determined by the central government, which will include inter alia, the salary and the allowances of the programme officer and his supporting staff and work-site facilities, expenses of the national employment guarantee council. The state governments bear the cost on the items includes 25 percent of the cost of material and wages of skilled and semi-skilled workers, unemployment allowance payable in case the state government cannot provide wage employment on time, administrative expenses of the State Employment Guarantee Council, administrative expenses towards salary of the officials at District and state levels appointed under MGNREGA. It has been specified in the Act that if an applicant under this Act is not provided such employment within 15 days of his application seeking employment, he shall be entitled to a daily unemployment allowance which will be paid by the state government. This implies an inbuilt structure of incentive for performance and disincentive for non-performance for the state government, as the inability to provide employment would require the state government to pay an unemployment allowance for which there is no contribution from the centre. In other words, individual states will have to evolve a well coordinated approach to equate supply of employment in accordance to the demand. While MGNREGA is a Centrally sponsored scheme, administratively managed by the Ministry of Rural Development, its implementation is exclusively done by the respective state governments. The states are expected to systematically make a claim over the allocated resources by planning MGNREGA work activities and turning them into projects. An accumulation of such projects is used to appropriate funds from the scheme resources earmarked through a budgetary process. Often, the states are unable to execute the programme efficiently due to the shortage of administrative and implementing personnel at the grassroots and sometimes due to interparty political differentials, if the party in power in the concerned state is different from the one ruling the Central Government. This becomes all the more important as there is no supply side selection of beneficiaries. It requires an in-depth understanding of region-specific labour demand and its seasonality so that a demandbased scheme of projects can be implemented at a frequency matching the demand for work
22 22
instead of relying on supply side provisioning. Failure to fulfill these requirements may result in an imprudent use of funds, as the inability to provide employment on demand will impose the burden of compensation in the form of unemployment allowance on the state government. Thus, there is a need to design a monitoring mechanism by strengthening the institutional structure at the local level so that resources can be used optimally. As it is a demand-based provisioning system, the flow of resources from higher levels of the government to the Panchayats needs to be assured according to the demand. Thus, it is necessary to evolve a clear mechanism of flow of funds as needed according to the demand rather than through the normal bureaucratic procedures. This would also require coordination between providing work and the provisioning of funding. Stringent conditionalities in fund release apart, the demand based provisioning may be potentially regressive. As it stands now, under the scheme funds will be released based on the annual work plan and budget proposal by the states.
Conclusion:
A unique and radical programme MGNREGA requires time to be fully or even substantially streamlined. Unfortunately, there is a sense of nervousness in the bureaucracy about increasing expenditure that has resulted in a narrow and parsimonious Scheme. Funding was argued by Jean Dreze and others to be possible through improved tax administration and reforms, yet the tax-GDP ratio has actually been falling. The main characteristic of the Scheme is sluggish and low spending rather than wastage and leakages. The bureaucracy seems to be in the grips of some kind of fear and lethargy, or simply a resistance to disturbing the pre-existing power equations at the local level. This stems from pessimism of the developmental outcomes of this programme, suspicion surrounding its empowerment spin-off and changing balance of power and an overall climate of fiscal tightening and low spending. [About the authors: Dr.S.M Jawed Akthar is Associate Professor; N.P. Abdul Azeez is Junior Research Fellow, Department of Economics, Aligarh Muslim University, Aligarh, UP. abdulazeeznp@ gmail.com.
Second Green Revolution:

Eastern States to Lead The Way
Dhurjati Mukherjee
Budget allocation for Rashtriya Krishi Vikas Yojana (RKVVJ), increased from 400 crores to 1000 crores.
here has been much talk in recent times about the need for a second green revolution as the country will have to increase its agricultural output by more than 340 million tonnes by 2020 in the face of increasing demand by a growing population. It is also important to mention that the first green revolution was limited to five crops with the main focus on wheat and was only limited to a few areas of the country, mainly Punjab, Haryana and western Uttar Pradesh. Studies have revealed that the cost intensive green revolution helped mainly the rich farmers while the small and marginal farmers did not receive the desired benefits and their conditions showed a decline.
Keeping this in view, the Finance Minister launched in 2010-11 the bringing green revolution in eastern India programme (BGRED) to focus on the eastern states comprising Assam, Bihar, Chattisgarh, Jharkhand, eastern UP, West Bengal and Orissa with necessary financial allocations to extend the green revolution. Reports reveal that rice production from the region is estimated at 562.6 lakh tonnes, an increase of 19.8 per cent over the last year. Overall foodgrain production is estimated at 1032 lakh tonnes, an increase of 11.9 per cent against an all-India increase of just 2.2 per cent, according to official figures. According to government sources, the increased production was due to focussed
c ontd. page 26....
23
Kurukshetra
April 2012
23
24 24
Kurukshetra
April 2012
25
Kurukshetra
April 2012
25
To be cont. page 23.....
resource allocation and utilization. The significant increase in production in the target region not only offset the decline in production in central and peninsular India but also contributed to the highest ever production of foodgrains. The programme, part ofthe Rashtriya Krishi Vikas Yojana (RKVVJ), gained momentum in 201112 with an outlay of Rs 400 crores with focus on rice and wheat and strategic interventions relating to crop production, water harvesting, asset building and site specific activities needed for improving the agronomy. It is thus in the fitness of things that in the current budget the allocation for 2012-13 has been increased to Rs 1000 crores, considering the success of the programme and to make greater inroads in increasing production and productivity.
conservation and management and this has also been looked into by the Finance Minister. Climate resilient agriculture is the need of the day and field research and experimentation are vital requirement at this juncture. Funds of Rs 200 crores have been aptly allocated for incentivizing research with rewards both for institutions and the research team responsible in such scientific breakthroughs.
One may mention here that another important announcement made two years back, which continued thereafter, was the proposal to organize 60,000 pulses programme and to The focus on agricultural and oilseed villages in rainmake greater inroads in research has to be fieldfed areas and provide an increasing production and oriented so as to ensure integrated intervention for efficient use of resources and productivity. water harvesting, watershed conservation of soil, water and management and soil health ecology on a substantive basis to enhance the productivity of the dryland areas. along with introduction of new varieties of seeds, In this budget, aNational Mission on Oilseeds modern technologies, nutrient and knowledgeand Oil Palm has been constituted to further based intervention developed for different agroincrease production and productivity of oil seeds climatic zones. Then only can the second green and oil palm. With per capita availability of water revolution, which is being discussed at every declining, the dryland areas would do well to level, can become a reality. concentrate on pulses and oilseeds production, both of which are in heavy demand and output Even the Eleventh Plan emphasized on needs to be boosted up. certain measures for taking agriculture to a higher trajectory of 4 per cent annual growth. There is also an imperative need to sustain For this to become a reality, the budget has the growth achieved in the green revolution rightly emphasized on making technology and areas by improving soil health and water
26 26 Kurukshetra
However, in spite of the success achieved, the productivity of paddy in eastern India is 2 tonnes per acre which is much lass than Punjab whose paddy production is almost around 4 tonnes per acre. It is now necessary to reach the small and medium farmers and make a dent to the whole of the agricultural sector. The eastern region comprises 50 per cent of the total area under paddy in thecurrent budget the cultivation and, as such, allocation for 2012-13 increasing production and has been increased to productivity is crucial to meet Rs 1000 crores, considering the countrys increasing food the success of the requirements.
April 2012
credit available to the small farmer at the grass root level. One may mention here some of the specific measures already outlined in the Plan in this regard: (i) improving water management, rainwater harvesting and watershed development; (ii) reclaiming degraded land for cultivation and focusing on soil health; (iii) bridging the gap through effective extension at the grass root level;
transfer and extension, irrigation and water planning, food processing and diversification of agricultural products need also to be given attention. It is significant that the problems of small and marginal farmers, who constitute the major segment of the farming community and who have been rather neglected, is a matter of great importance and help and support to this group is very vital.
The renewed thrust in setting up of agro processing centres in the rural areas is an imperative (iv) diversifying into high-value outputs, fruits, need as this would result in the minimization of flowers, medicinal plants, bio-diesel etc.; post-production losses and production of value(v) providing easy access to credit at affordable added products for consumers at an affordable rates; and price. The question of (vi) improving the reducing wastages and the The focus on agricultural incentive structure improvement of storage research has to be fieldand functioning of has been stressed by the oriented so as to ensure markets. efficient use of resources and Finance Minister as the Former President, conservation of soil, water and second element of the of Dr. A. P. J. Kalam, realized ecology on a substantive basis the agricultural growth the potential of Indian along with introduction of new strategy. If necessary, private sector participation agriculture and highlighted varieties of seeds, modern would have to be ensured, this in various forums technologies, nutrient and specially in developing and also at the triennial knowledge-based intervention agro processing in a big conference of the Global developed for different way. One cannot deny Forum on Agricultural agro-climatic zones. that the private sector has Research at New Delhi played a significant role way back in November 9, as developers of new crop varieties, specially 2006. Since then several workshops have been hybrids, and providers of high quality seeds. It is held on the subject. While there is unanimity now necessary for the government to encourage of opinion that the spread effect of the second and provide incentives for collaborative research green revolution must in the eastern states reach for developing products. the farthest corners, some have rightly pointed out that it should ensure financial inclusion of the small and marginal farmers whose numbers continue to grow over the years. Certain other aspects like agri-marketing in a globalized environment, frontier areas of research and development and technology
Agricultural development could be possible through the following measures: (i) new and innovative technology for enhancing production; (ii) new technology for resource conservation; (iii) encouraging farmers cooperatives in a big way as is being done in Gujarat and Maharashtra;
27 27
(iv) massive skill training and entrepreneurship development; (v) value addition of agricultural products, not only at the level of industry but also at the level of farmers; and (vi) good marketing network, including development of future market. In this connection, the Indian Council for Agricultural Research (ICAR) with around 200 experiential learning units at 43 agricultural universities in different parts of the country should intensify requisite training activities to equip the farmer in the proper way.
There is a belief, to start with, that the second green revolution should be made possible in the India can definitely emerge as an agricultural rain-fed areas so as to improve the income levels power in the not-too-distant of the distressed farmers. The main challenges obviously lie It may be mentioned here future if a better strategy is in reaching new technologies that even in Punjab, where implemented. There is an urgent need to overhaul socioto small and marginal farmers, the average farm size is 3.8 economic and farm policies to providing them necessary credit acres which is 2.5 times the remove rural disparities and and improving their incomes average size of Indian farms, remove rural poverty or at through better infrastructure least bring it down steadily. the farmers income is far and marketing strategies. less than the average salary The face of rural India has to In such a scenario, positive be transformed keeping in of a Class IV employee steps are needed at this juncture, view the need to improve the of the government. the first and foremost of which living conditions of the masses is the strengthening the existing and for this diversification Krishi Vigyan Kendras (KVKs) and setting up such strategies have to be evolved to bring more Kendras in all the blocks of the country to reach value-addition while agricultural productivity is all sections of farmers in boosting production, geared up. One may conclude with an estimate facilitating adoption of improved knowledge on by Dr. C. Rangarajan, the eminent economist, as production, value addition and marketing and early as 1982, that a mere one per cent increase extending all types of help through adoption of in agricultural output led to a 0.7 increase in improved knowledge on production, value addition national income and it may be added that most and marketing. part of this enhanced income obviously reached the grass root levels of rural India and benefited But the crucial thing that remains to be the farming community. ensured is that returns from agriculture have to be monitored so that the farming community is not (The author is a freelance writer on put in a precarious situation and mounting debts developmental and environmental issues. do not lead them to suicide. It may be mentioned (development based in Kolkata). (dhurjatimukherjee here that even in Punjab, where the average farm 54@gmail.com)
28 28 Kurukshetra
size is 3.8 acres which is 2.5 times the average size of Indian farms, the farmers income is far less than the average salary of a Class IV employee of the government. The question thus arises is that how will farmers continue to be involved in cereal production with stagnant incomes, more so with fertilizer and electricity rates on the increase? There is thus an imperative need to examine the question of subsidies and/or enhance the minimum support price for various crops. The higher rates would ensure better returns for farmers and there is no reason to raise a hue and cry about increased food process.
April 2012
APPROACHES TOWARDS TWELTH FIVE YEAR PLAN NEED FOR FOCUSED ATTENTION
Arpita Sharma
India currently has the worlds largest food insecure population with more than 260 million people facing hunger and deprivation ahatma Gandhiji had a vision that India after its independence should achieve self-sufficiency of villages in which every one would have adequate food, shelter, clothing, proper hygienic and sanitation facilities and every person willing to work is provided gainful employment. Let not history of India record that Mahatma Gandhiji brought political independence for India but the Government could not bring economic emancipation for rural poor. This paper highlights poverty, hunger, child nutrition and food security in the country and suggests that Twelfth Plan [2012-17] should give focused attention to significantly ameliorate the deteriorating situation.
Poverty: According to NSS round [2004-05],

41.8% rural population had monthly per capita
expenditure of Rs.447 as against 25.7% urban population having monthly per capita expenditure of Rs.578.8. According to Multidimensional Poverty Index [MPI] worked out by UNDP & Oxford University, July 2010, about 645 million people [55%] in India are poor. As against 410 million MPI poor in 26 of the poorest African countries, eight Indian States [Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal] have 421 million MPI poor. The MPI reveals a vivid spectrum of challenges facing the poorest households. MPI considers 10 sharp indicators, namely Education [child enrolment and years of schooling]; Health [child mortality and nutrition] and Standard of living [electricity, drinking water, sanitation, cooking fuel, flooring and assets].
29
Kurukshetra
April 2012
29
A global report on poverty eradication of the U.N. Secretary-General shows that economic growth is evident for the progress in China in reducing extreme poverty and raising living standards, whereas India is expected to be home to more than 300 million in poverty out of 900 million predicted to be in extreme poverty in 2015.
Hunger: In India, the right to food campaign

launched in 2001 focused its demand to address the structural roots of hunger since Indias commitments to tackle the problem of hunger and malnutrition are among the worst. India currently has worlds largest food insecure population with more than 260 million people facing hunger and deprivation. According to the Global Hunger Index [2008], India ranks 66 among 88 countries surveyed by the Washington-based International Food Policy Research Institute. India comes below Sudan, Nigeria and Cameroon. Under the United Nations Millennium Development Goal No.1, for Sustainable Human Security and Peace India is committed to reduce hunger and poverty by half by 2015
child under-nutrition as a major contributory factor behind persistent hunger. According to Washington-based International Food Policy Research Institute India is among 29 countries that face alarming situation of hunger. Malnutrition among children under two years of age is one of the serious challenges to reduce hunger, which if not timely attended can cause lifelong harm to childs health, productivity and earning potential. Our Prime Minister Dr. Manmohan Singh had once referred to under-nutrition as a matter of national shame. Experiences of successes in China, Brazil, Thailand, Vietnam and other countries suggest [i] according top priority to child nutrition with adequate investments in nutrition interventions and related critical areas impacting multiple deprivations [ii] targeting nutrition interventions to prevent and moderate under-nutrition and treat severe under-nutrition as a part of continuum of care for children, particularly among the most vulnerable children, the youngest, the poorest and the socially-excluded [iii] strengthening community-based primary health care to facilitate wider and deeper coverage through communitybased frontline workers [iv] strong supervision, monitoring and evaluation of the effectiveness of policy, programs and budgetary allocations to yield expected outcomes and provide timely documented feedback to re-look policy, programs and budgetary action [v] reducing malnutrition calls for serious concern for poor, strong political will to commit, good governance and accountability [vi] Cash Transfer Scheme to be effective need to be supported by adequate staff and infrastructure for public sector health facilities. With serious concern and commitment China reduced child under-nutrition from 25% to 8% between 1990 and 2002, Brazil from 18% in 1975 to 7% in 1989, Thailand from 50% in 1982 to 25% in 1986 and Viet Nam from 45% to 27% between 1990 and 2006. India has the financial & human resources
Child Nutrition: Despite the Integrated Child

Development Scheme since early 1970s, the National Family Health Survey, 2006, notes the child under-nutrition rate is 46%, which is almost double that of sub-Saharan Africa. India has 40% of the worlds underweight children and ranks 126 out of 177 countries in the UNDP Human Development Index and [ii] 20% of children under five-years-old are wasted [too thin for their age] due to acute under-nutrition and 48% were stunted [too short for their age] due to chronic under-nutrition and 70% of children between six months and 59 months were anaemic. The percentage of children below five years of age who are underweight is 42.5% as compared with 4% in Brazil and 6% in China. More than a third of all deaths in children aged five years or younger can be attributable to under-nutrition. Infancy deaths were 53 per 1000 live births in 2008.The Global Hunger Index [2010] identified
30 30
as well as administration and managerial capabilities to address, once and for all, the challenge of child under-nutrition. Let the prevention and treatment of child under-nutrition in the first two years of life be a national development priority and let National Nutrition Week be celebrated in September every year to create mass awareness about the programs and exercise right to hold implementers accountable.
and profitability of farming enterprise by creating enabling environment through enhancing annual public sector investment, arresting imbalance in the flow of farm credit, legal framework for defining tenant farmers relationship with land in particular
Investment: The Gross Capital Formation

[GCF] in agriculture and allied sectors as a proportion to the GDP in the sector stagnated around 14% during 2004-05 to 2006-07. Though it increased to 16.03% in 2007-08 and 19.67% in 200809 [provisional] and estimated 20.30% in 2009-10, the GCF in agriculture and allied sectors relative to overall GDP has remained stagnant at around 2.5% to 3.0%. As a result the share of GCF in agriculture and allied sector in total GCF has remained in the range of 6.6% to 8.2% during 2004-05 to 2009-10. To accelerate the process of farm development and achieve inclusive rural growth, policy should focus on critical areas, namely [i] accelerated investment in rural infrastructure to improve transport, communication, storage, processing and marketing facilities [ii] establishing State of Art Agri-meteorology [iii] expanding irrigation and reclamation of wastelands [iv] strengthening agricultural education, research and extension services and capacity building of farmers to bridge the yield gap between the potential yields and actual yields at field level in rain-fed and irrigated farming systems [v] development and use of genetically engineered seeds, micro-irrigation systems, greenhouse technology, integrated nutrient and pest management techniques, computer-based modeling to track disease and pest incidence [vi] farm mechanization [vii] remote sensing technology. Investment in agriculture would facilitate farmers access to frontier technology, food processing, farmto-market linkages, agricultural extension, weather and crop forecasting, large-scale development of bio-diesel, mechanization and commercialization of agriculture. Public, private and foreign investment should remedy the situation of investment shortage in agriculture and help transform a negative subsidy regime into a capital-intensive positive Agricultural
31 31
Food Security: Per capita availability of food

grains and other essential food products in India is below the world average and significantly lower than in developed countries. Food is unaffordable for a large number of the poor in India. Under the proposed legislation for food security to Indias teeming millions, the Expert Committee has estimated procurement & distribution of food not less than 63.98 million tons, rising to 73.98 million tons by 2016-17 against the likely procurement of 57.61 million tons in 2013-14.As about 800 million persons are sought to be covered under Food Security Act, it is necessary to substantially increase food productivity & output to facilitate the estimated level of procurement, create additional facilities for transport, processing, storage and evolve transparent distribution mechanism. A large amount of the subsidized food grains targeted at BPL households, some APL households and other vulnerable groups find its way to the open market. Scientific studies revealed that in 2001-02, 18.2% of PDS rice and 67% PDS wheat were diverted. In other words, over 40% of all grain targeted at the poor did not reach the poor. Using the NSS expenditure survey of 2004-05, overall diversion was of 55% of the grain meant for the poor. The same problem is manifested in case of kerosene, diesel and fertilizers. Besides, the current system is beset with significant level of adulteration, pilferage and corruption.
Focused Attention: Chronic problems of

rural poverty, hunger, child nutrition and food security, among others, need focused attention to significantly develop productivity, production
Marketing Service regime and stimulate Indian producers to access global markets. Government, Agricultural Universities and ICAR Institutes along with industrial, business and commercial houses in close coordination should accelerate their efforts to accomplish this task
companies. The National Sample Survey [2003] estimated that the area under informal tenancy in India varies between 15% and 35% of the total farm area and 36% of the total households leasing land are landless laborers and 47.5% having land below 0.5 hectare. Rural households should identify their financial and non-financial needs for income generating activities in rural farm and nonfarm sector and infrastructure and demand them from elected representatives. State and Union Government need to allocate adequate financial resources in their annual budgets to tackle issues of poverty, hunger, child nutrition, food security and rural infrastructure. Implementing agencies including banks should have serious concern, commitment and be accountable to achieve expected goals district, State and region-wise. Information about the performance of each program should be made available to the public every month through local print and electronic media as also through seminars, workshops and conferences at district level.
Farm Credit: The credit flow to agriculture

since 1970 till 2010 has been of the order of Rs.28,53,261 crore, of which 81.50% was disbursed between 2001-02 to 2009-10. However, its impact on improving crop productivity and output has been low. Despite banking system has been achieving stipulated credit targets announced in the budgets since 2001-02 in absolute terms every year there have been significant disparities in credit flow between States, between districts and between villages. In fact, in absence of appropriate legal frame work tenant farmers, share croppers, oral lessees, landless laborers, households residing in hilly, tribal, desert, drought prone areas in particular do not have easy and reliable access to institutional credit.
Conclusion:
Tenant Farmers: India has a large number of
Pattern of Land Leased for Farming by Rural Households by Percentage

State Andhra Arunachal Assam Bihar Chhatisgarh Gujarat Haryana Karnataka Kerala Landless Laborers 53.1 71.3 34.7 58.0 26.9 63.7 24.0 55.2 50.0 Below 0.5 hectare 30.4 20.1 43.6 87.0 43.5 18.8 45.4 28.3 46.2 0.5 &1.0 hectare 08.5 04.1 11.3 06.0 18.6 05.5 08.9 05.3 03.4 All India 35.8 47.5 08.2 State Madhya Maharashtra Orissa Punjab Tamil Nadu Uttar Pradesh West Bengal Landless Laborers 28.5 60.1 17.3 23.8 72.7 78.0 14.1 Below 0.5 hectare 39.7 19.8 71.8 31.9 21.3 69.5 75.1 0.5 to 1.0 hectare 10.9 07.0 07.9 13.5 02.3 13.2 08.4
tenant farmers whose legal relationship with the landowners and the piece of land they cultivate has yet not been acknowledged through statutory legal framework to facilitate them to access credit from banks and insurance cover from insurance
32 32
(The author is Ph.D Research Scholar, Dept. of Agricultural Communication, College of Agriculture, G. B. Pant University of Agriculture and Technology, Pantnagar 263145 (Uttarakhand), e-mail-sharmaarpita35@gmail.com)
Electricity Through Cogeneration:

A Promising Development
Dr. J. R. Meshram, Gargi Malik
To meet the requirement of captive power and thermal energy, the installation of biomass cogeneration projects (excluding bagasse co-generation ) is being promoted in industry, with at least 50% of power for captive use, and a provision for the surplus power to be exported to the grid.
hink of a sugar mill, not only producing sugar but also generating power as a by-product. Bagasse, a residue of crushed sugarcane used in sugar mills is the principal fuel used to raise steam in sugar mills. With the technological innovations, the high pressure steam generated in boilers can in turn be used to rotate the turbo generator blades to produce electric current.The process employed here to generate power is called cogeneration which essentially implies the production of two forms of energy, electricity and heat. The power thus generated can be used for meeting the requirements of the sugar mill and the surplus can be fed into the grid.
Cogeneration or production of electricity in combination with another industrial process is not limited to sugar mills alone. There are several other industries such as paper and pulp, textile, fertilizer, petroleum, petrochemicals and food processing which require electrical as well as thermal energy for their operations and therefore can use cogeneration as a process. The total fuel consumption is significantly reduced when cogeneration or combined heat and power (CHP) is applied. The overall efficiency of energy use in cogeneration mode can be up to 85 per cent and above in some cases.
33
Kurukshetra
April 2012
33
In the present scenario, where price of fossil fuels is shooting up and there is shortage and nonavailability of coal, cogeneration appears to be a promising development. The thrust on distributed generation and increasing awareness for cutting green house gases emissions increases the need of processes like cogeneration. Also it helps in controlling pollution from fossil fuels. The Ministry of New and Renewable Energy is promoting cogeneration through various incentive based schemes. Biomass Cogeneration programme inIndiais currently divided into two components (i) Bagasse based (ii) Non-Bagasse based . While bagasse cogeneration is essentially sugar mills oriented non-bagasse biomass cogeneration can be used in biomass industry.
A capacity of around 1854 MW of surplus power generation has so far been commissioned in 170 sugar mills in the states of Andhra Pradesh, Bihar, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh and Uttarakhand. More than 200 MW of projects in about 20 private sector sugar mills are under construction. Optimum bagasse cogeneration benefits not only the sugar mills but also the sugarcane farmers as the value addition to their cane is enhanced and thus they can realise more money for it.
Power Cogeneration in Industries (Non-Bagasse) Programme

The industrial sector today consumes approximately 35% of total electricity generated in the country. At the same time, high quality stable power is required to attain the higher growth rate projected for this sector. Majority of industries inIndia require both electrical and thermal energy. Today, they either buy power from the State Electricity Boards, or generate their own power largely through diesel generators and meet their thermal energy requirements through captive means mostly utilizing fossil fuels such as coal, oil or natural gas. As fossil fuels are limited, and have adverse environmental impact, it would be appropriate to use non-conventional energy sources including biomass resources such as crop residues and agro-industrial wastes for generation of energy in the industries mainly through biomass gasification technology for meeting their total/partial requirements for both electrical and thermal energy. Industrial co-generation has in the past not received adequate attention, as cheap power and fuel were abundantly available. However, with increasing tariffs, and unreliable supply of grid power, there is considerable opportunity for the industrial sector to tap the potential for producing electricity and thermal energy in
Bagasse Based Cogeneration

As already explained, the bagasse based cogeneration is mainly centred in sugar mills.Indiais the worlds second biggest producer of sugarcane. Indian sugarcane production during 2010-11 is estimated at 340 million tonnes. Indias 527 working sugar mills crush around 240 million tonnes of cane per year and generate 80 million tonnes of wet bagasse (50% moisture), of which they consume around 70 million tonnes for meeting captive requirementsof power and steam. Thus, electricity production through cogeneration in sugar mills inIndia is an important avenue for supplying low cost, non-conventional power. Indian efforts for promotion of bagasse cogeneration started with two pilot projects taken up in cooperative sugar mills in Tamil Nadu in 198889 for generation of surplus power and feeding it to the grid. Though possibilities of additional power generation through cogeneration in sugar industry has been known for long, but their usage started in a significant manner only after 1994, after announcement of programme on bagasse based cogeneration by the Government.
34 34
the co-generation mode. In particular, there is significant potential in breweries, caustic soda plants, textile mills, distilleries, fertilizer plants, paper and pulp industry, solvent extraction units, rice mills, petrochemical plants, etc. Furthermore, co-generation projects based on conventional fuels such as coal, oil, lignite, gas and un/semiutilized wastes/rejects like dolochar, coal rejects and refinery mud, etc. can also be installed in industry for meeting their power and energy requirements. To meet the requirement of captive power and thermal energy, the installation of biomass cogeneration projects (excluding bagasse cogeneration) is being promoted in industry, with at least 50% of power for captive use, and a provision for the surplus power to be exported to the grid.This has increased the use of nonconventional energy sources and conserves the use of fossil fuels such as coal, oil and natural gas. Use of maximum of 25% conventional fuels has been allowed in such projects. The promotional schemes also provide for Grants-in-Aid to State Nodal Agencies, NGOs and other concerned institutions for organizing seminars, workshops, training/orientation programmes, technology validation, strategic studies, industry-wise sectoral studies and performance monitoring & evaluation, etc.
plant with concurrent modernisation is done by BOOT developers. This model has advantage in terms of non-requirement of equity and loans by cooperative sugar mills and nil liability to repay and limited risks. The cogeneration plant and assets after BOOT period are to be handed over to cooperative sugar mills. The Ministry of New and Renewable Energy has supported the BOOT model projects in Maharashtra and Tamil Nadu.BOOT model projects in 12 Co-operative Public sector sugars mills in Tamil Nadu of aggregate capacity 180 MW and BOOT model cogeneration projects in two cooperative sugar mills of Maharashtra of total capacity 80 MW are under implementation. The Ministry plans to extend this effort in the Cooperative/Public sector sugar mills in the states of Karnataka, Andhra Pradesh, Gujarat & Uttar Pradesh, during the next two to three years. Boiler Modification in Cooperative Sugar Mills:A number of recently installed cooperative sugar mills have already employed the configurations to enable them to undertake cogeneration power projects with minimum investment through modification of existing boiler and matching turbine. Ministry of New and Renewable Energy has modified the scheme for providing Central Financial Assistance for boiler upgradation of cogeneration project in such sugar mills. The incentive based schemes and the technical support to the industry by the Ministry of New and Renewable Energy for installing cogeneration based projects is expected to give a big push to the non-conventional energy programme during the twelfth Plan Period. (PIB Feature). (The First author is Scientist F, Ministry of New & Renewable Energy, New Delhi, and the second author is Assistant Director, Press Information Bureau,New Delhi.)
35 35
New Initiatives for Promotion of Cogeneration inIndia

BOOT (Build, Own, Operate, Transfer) Model Cogeneration Projects in Cooperative Sugar Mills:Provision for Central Financial Assistance has been made for bagasse cogeneration projects taken up through BOOT model in cooperative sector sugar mills set up by Special Purpose Vehicle or an Independent Power Producer. In this case, the investment in cogeneration power
FROM THE GROUND
Peoples Biodiversity Register and Tapping Indigenous Knowledge : A Case Study From Wayanad
Dr. Raju Narayana Swamy
cosystem people depend directly on natural resources for their livelihood. Their rights include the right to protect, conserve, or manage resources which they have been traditionally protecting and conserving for sustainable use. Indigenous knowledge is an integral dimension of all societies but is more intact in areas, such as high-altitude remote Wayanad areas, where isolation have acted as barrier to outside forces for a long period. In our analysis, we discuss the scope for integrating indigenous knowledge and conventional ecological science for resolving biodiversity conservation-development conflicts, within the context of the Wayanad mountain system. It analyses an institutional innovation, the Peoples Biodiversity Register, aiming at collective management of traditional knowledge and biodiversity conservation. The key evaluation criteria used in the framework includes:
Relevance i.e., the extent to which the objectives of PBRs are consistent with beneficiaries. Effectiveness, i.e., the extent to which the PBRs objectives are achieved and Efficiency i.e., how economically resources are converted to results and how it provided food security to tribals in Wayanad. The desirability for economic growth is undisputed. Critics have pointed to the irreversible disruption of traditional societies, their life styles, and the spread of a uniform materialistic mass culture. This culture may lead to cultural shallowness and exploitation of ecology as a result of capitalistic market relations. In traditional societies people are more in tune with their potentialities in natural environment which would balance their needs and wishes. There is a strong Malthusian movement which stresses that continued economic growth will disturb the balance of nature, ultimately leading to ecological catastrophes.
36 36
Kurukshetra
April 2012
In this harmonized political-economic milieu, the boundaries of states with respect to economic matters have begun to give way to economic markets. Regions, under the impulse of state and business elites, fail to compete in the global economy, and they have also not established networks of cooperation in the regionbased companies. These regional economies become the principal basis for participation in the global network in which the logics of capital and technology guide the economic, political, cultural and institutional flows of human activity to rationalize social and ecological relations. Here the type of environmental crisis is shaped by the capital.
economic exchanges and unequal power relations between rich and poor nations are detrimental to the poor nations of the world. In essence rich nations become wealthy by exploiting the cheap labour and resources of poor nations. Research focussing in the 1980s, tended to focus on multinational corporate penetration or foreign direct investment (John, M. Shandra, et.al., 2010). Inequality of income and resource distribution have received much of the blame for environmental degradation. National laws, economic and political institutions and government policies are central to many recent explanations of biodiversity loss(Alexander, Wood, 2000). Our study follows in this way.
Biodiversity
Ecological and genetic multiplicity together make the foundation of existence. United Nations Environment Programmes Global Biodiversity Assessment proposes that Biodiversity represents the very foundation of human existence. The convention on Biological Diversity in Article 2 defines it as the variability among living organisms from all sources including, inter alia, terrestrial, marine, aquatic ecosystems and the ecological complexes of which they are the members; this includes diversity within species, between species and of ecosystems(World Resources, 1994). There are three processes that lie in global biodiversity loss. The first is the destruction and fragmentation of habitat associated with the expansion of mining, forestry and agriculture. Habitat fragmentation and loss in areas of high endemism are considered to be the major cause for the extinction of species worldwide. The second is the introduction of species. Its effects include the deletion of indigenous species through predation or competition, genetic alteration of indigenous species through hybridization and the alteration of ecosystem structure. The functions include biogeochemical, hydrological and nutrient cycles, soil erosion and other geomorphological processes(Charles, Perrings & Jon, Lovett). The dependency perspective argues that international
Biodiversity conservation
From an ecological perspective, biodiversity protects ecosystem resilience by understanding the provision of ecosystem services over a range of environmental conditions. The ecological impact of biodiversity loss depends on the link between the species and the functions of the system(Charles, Perrings). The economy as a part of its life-supporting environment, depends not only on the inputs of energy and natural resources for production and consumption, but also on services generated by ecosystems, such as drinking water supply, recycling of nutrients, generation of soils. Being parts of ecosystems, species sustain those crucial services. If human societies do not recognize their place in the overall systems, their activities will continue to cause degradation to biodiversity, thereby reducing the environmental support on which human welfare depends upon (see the figure below:). The most important environment centric and anthropocentric reasons for conserving biological diversity is the role played by micro-organisms, plants and animals in providing ecological services of value to humanity. A multiplicity of organisms underpins the ecological life-support functions that enable human societies to exist. The value of biological diversity thus lies in the value of the ecological services supported by the interaction
37 37
between the organisms, populations and communities of the natural environment, and the value of biodiversity loss reflects the sensitivity of ecological services of both the depletion and the deletion of species (Charles, Perrings & others, 1992, p.201.). The conservation discourse on biodiversity originated with the notion of a diversity crisis, which came about gradually during the 1970s with increasing awareness of an extinction wave that was threatening as a consequence of human populations growth and increasing intensity of environmental modifications (Yrjo Haila & Jari, Kouki, 1994). A simplistic view of integrated management would be to identify key interventions to the concept of keystone species enabling environmental and socio-economic benefits simultaneously. Two approaches are identified to overcome the problem-complex. One is the internal perspective approach or the indigenous knowledge-based approach where nature, resources and livelihood have been viewed by the indigenous/traditional communities. The other is the conventional scientific approach or global economic and environmental world-view referred to as the external perspective approach or top-down approach (Rao, K.S. & others, 2003).
Joint Forest Management Programme since 1991, the Extension of Provisions of Panchayati Raj to Scheduled Areas Act (PESA), 1996, the Biological Diversity Act 2002 and more recently the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006. Biological Diversity aims to promote conservation, sustainable use and equitable sharing of benefits of Indias biodiversity resources, including habitats, domesticated stocks etc on public and private lands. With this in view it provides for the establishment of a National Biodiversity Authority (NBA), State Biodiversity Boards (SBB) and Biodiversity Management Committees (BMC) at the level of Panchayats (gram, taluk, zilla) municipalities and corporations. The Biological Diversity Act included provisions for the constitution of Biodiversity Management Committees. The main function of the BMC is to prepare Peoples Biological Register consulting with local people. The peoples Biodiversity Register Project (PBRP) was commenced as a pilot project in Kerala in 1997 (The detailed statistics on Peoples Biodiversity Register in Kerala is given in appendix 1). It was considered necessary tool for recognising the range of local knowledge, rewarding and promoting the use of traditional knowledge, skills, techniques and conservation practices, encouraging inter-community transfer of knowledge. It strongly believes that community register could be used to protect biodiversity and local knowledge. The following section will discuss about its implementation in Wayanad district in Kerala. The key evaluation criteria used in the framework includes: Relevance i.e., the extent to which the objectives of PBRs are consistent with beneficiaries and donors policies. Effectiveness, i.e., the extent to which the PBRs objectives are achieved and Efficiency i.e., how economically resources are converted to results and how it provided food security to tribals in Wayanad.
Community-based Management
Important initiatives taken by the government of India to secure natural resources include
38 38
Wayanad district
Considering the ecological importance, Wayanad district in northern Kerala is selected for the analysis. The district lies at a height of 700-2100
m above sea level, on the north-eastern part of Kerala. Its geographical area is 2131 sq. km(Profile of the district given in appendix 2). The population of the district is 7,80,619. Wayanad has the highest concentration of tribals, constituting (136062) 17.43 percent of the total tribal population in Kerala. Major communities in Wayanad are Paniyas (44.77 percent), Mullu Kuruman (17.51 percent), Kurichya (17.38 percent), Kattunaickan (9.93 percent), Adiyan (7.10 percent), Urali Kuruman (2.69 percent) and others (0.61 percent). These tribal communities mainly are marginal farmers, agricultural labourers and forest dependents. The study included a subset of households who make use of forest resources. Location of the households near to or inside the forest area is one of the important factor, which is hypothesized to influence the extent of dependence. Group discussions were conducted with households near to and inside the forest. Three hamlets were purposively selected from Thirunelli panchayat. During the discussion it was found that most of the households are afraid of exposing the details about their resource collection from the forest. Interviews with tribal promoters revealed that they are afraid of officials, especially forest officials and hence are reluctant to reveal the facts. It was with the help of tribal promoters working in the consecutive hamlets that researcher was able to collect information regarding their interaction with the forest. The overall dependence on forest by the sample households for various purposes is given in Table 1.
Table 1 Purpose of forest visits
Particulars of resources collected Collection of fuelwood Collection of NTFP for sale Collection of tubers/fruits/leaves Fishing Fodder Bamboo (for own purpose or for sale) Source: Survey
Guarantee Programme. MGNREGP works in Thirunelli were mainly fencing and forestry works. The NTFP collected from forest for sale mainly includes medicinal herbs. Edible items collected are taken home for food. Details of items collected from forest are given below.
Table 2 Items collected from forest
NTFP collected for sale Wild pepper Wild turmeric Kundirikkam Asparagus Kurumthotti Kakkukai Honey Wild bitter guard Tuber items Venni Nooran Vellan Fruits/vegetables Gooseberries Wild jack fruit Bamboo seed Guava Mushroom Fish Source: Survey data
Indigenous Knowledge and Biodiversity conservation

The shrinking of the flora and fauna have resulted in the retreat of medicinal knowledge and use of these natural resources by the adivasis. Deforestation and alienation of adivasi land have reduced the use of traditional medicinal plants and other resources by these people. The food security of Wayanads tribal people is in a threatened situation because of the disappearance of many species of plants, animals and fishes which they collect from their home gardens and surroundings. The main reason of poverty and malnutritioninduced diseases among the tribal people is depletion of biodiversity. In the early periods ragi, little millets, paddy, vegetables and tubers were cultivated by them. Now cash crop cultivation is
39 39
Income for all the sample households where obtained from agricultural wage labour and Mahatma Gandhi National Rural Employment
prevalent in Wayanad. Many traditional paddy varieties have disappeared. Earlier many paddy varieties were there. But now only five varieties are cultivated, that too only by the Kurichya community. Excessive use of chemical fertilisers had led to the disappearance of many fish and indigenous plant varieties. Large-scale proliferations of pests that attack crops were found. Many of them have developed resistance to insecticides. There is a marked reduction in the availability of fish, crab and forest products which had given a strong immune system to the tribal people. With the reduction of proper food supply, they now suffer malnutrition and food insecurity. The social consequences of the depletion of forest cover and paddy fields in Wayanad is obvious. Tribal women who earn their daily wages as labourers in paddy fields are out of work because of the conversion of paddy fields to coconut, banana and areca plantations. The impoverishment of Wayanads biodiversity, is a crucial issue, especially for the indigenous people (Madhavan Nair, R., 2002). An estimated fifteen percent of the plant diversity in the district is highly threatened. The Community Agro-biodiversity Centre (CAbC) of the M.S.Swaminadhan Research Foundation (MSSRF) undertakes activities related to conservation, enhancement and sustainable and equitable use of agro-biodiversity and genetic wealth through the active involvement of tribal communities in Wayanad.
The documentation of biological resources and associated traditional knowledge (TK) in India are strongly supported by the state governments and other public institutions. The state plan for Kerala has also actively promoted documentation of local knowledge relating to biodiversity in Peoples Biodiversity Registers (PBRs). One pilot project has been completed in Ernakulam District(Kerala). Two other projects at Panchayat level has been initiated by the Tropical Botanic Garden Research Institute1 and the Kerala Forest Research Institute.
Peoples Biodiversity Registers (PBRs)

These are registers that document biodiversity and bioresources and its associated knowledge of tribal and rural communities of the region. These registers prepared by the local communities with technical support of the CAbC in Wayanad, provide information on the patterns of natural resource use. The PBR program organises information in the domain of folk science on the status, uses and management of living resources. This information is available with the people who deal with living resources as part of their daily subsistence activities as graziers, tribal folks etc. The information may be purely orally transmitted or contained in palm leaf manuscripts. These register can be used to promote sustainable management of natural resources and disport claims of communities and individuals about generic resources and knowledge about their use (Pons, Batugal & Jeffrey Oliver (eds.), 2003). The PBRs helped the tribal people to identify two areas like local heritage sites that represent valuable species and people holding traditional ecological knowledge sites. The institutional framework for generating the structured information as a part of the PBR process is as follows: In Wayanad, PBRs is in an experimental phase. The Peoples Biodiversity Register features the transformation of traditional knowledge into recorded information as a result of the communication between local knowledge holders and bureaucrats, and local knowledge holders and facilitators. The variables shaping collective action of PBRs in Wayanad are as follows:
Community Biodiversity Register (CBR)

The CBR program was originated with the concept of Community Register launched by an NGO, FRLHT in 1995. It focussed on documenting community based knowledge of medicinal plants and their uses. The programs name was changed from Community to Peoples Biodiversity Register (PBR) in 1995 to reflect knowledge shared freely among community members. Most systematic attempt in the preparation of PBRs at the national level in India was initiated in 1996-98 by Biodiversity Conservation Prioritization Programme sponsored by World Wide Fund for Nature (WWF).
40 40
Table 3 Institutional framework of Peoples Biodiversity Registers

Institution Supervisory agency Implementing agency Country NBA MoEF, GoI State SBB District ZP-BMC study group Taluk Local body Village/ward Village or Ward BMC study group Educational institutions & CBOs selected by BMVC TP-BMC Panchayat/ study group Municipality TP-BMC Educational institution & CBOs selected by BMC
Nodal agency Educational designated by institution SBB designed by ZP_BMC TSG TSG
Technical support agencies
Technical support group (TSG)
TSG
Local education Local science/ institutions educational institutions
Source: Madhav, Gadgil, & others (2006), Ecology is for the People: A Methodology Manual for Peoples Biodiversity Register, Centre for Ecological Sciences & Agharkar Research Institute, National Workshop on Peoples Biodiversity Register, 22-23rd June, Chennai. NBA-National Biodiversity Authority, SBB-State Biodiversity Boards, BMC- Biodiversity Manangement Committee
Paniya tribal population, women play a key role in the management of food species. Processing their knowledge about specimens, into valuable food items is the monopoly of women. This knowledge is transferred to PBRs through NGO to states lowest level, panchayat. The reputation in this regard is attached to the individual reputation of the NGO facilitators. The trust of tribal people in the representatives of the NGO contributes towards its reputation in the long run. There is lack of concrete examples where PBRs has lead to meaningful benefits for tribes. To quote the activities of CAbC, this is an instrumental in preparing Peoples Biodiversity Registers (PBRs) in Wayanad. A core of village volunteers were selected, formed as a committee, and trained in preparation of inventories. The management of such chronicled documents as the Peoples Biodiversity Register was discussed with the stakeholders and institutionalized with the help of formal or informal institutions at the village level. Gender perspectives were internalized in the process of forming groups, in the documentation of species and their associated knowledge. The CAbC collected some of these traditional varieties, multiplied them and redistributed to interested farmers. (The author is Senior IAS Officer and is currently Secretary to Govt. of Kerala, e-mail : narayan5@ias.nic.in)
41 41
Collective Action in Wayanad

The forest of Wayanad, rich in biodiversity contributes household food security of tribal communities. The tribals have knowledge about different leafy vegetables and herbal medicines. Women are involved with the collection of leafy vegetables, tubours etc for food. The PBRs is a result of interface between the NGO facilitators and the expert knowledge holders of tribal communities like the Paniyas, Kurichyas, Kattunaikens etc. With respect to gender, among the knowledgeable
Electricity from fruits and vegetables

S.Jothimani, M.Marimuthu and M.Paramasivan
urrently, India has a gap in its energy supply and with further economic growth this is likely to continue into the future. There is a demand supply gap in energy of 8% and peak power of 12.6% for the last decade and this gap has widened in the last 3 years. Even if all the ultra supercritical power projects are brought online, the gap is likely to persist by the time they are implemented owing to higher energy intensity of the economy due to industrialisation and the very low Indian per capita electricity consumption. This situation is particularly exacerbated at the rural level. It is estimated that only about 80% of villages in India are electrified, and that only 44% of rural households are actually electrified.
dissecting. He thought that electricity was of animal origin and could be found only in living tissues. A few years later, in 1800 Alessandro Volta discovered that electricity could be produced through inorganic means. The Daniell cell was a great improvement over the existing technology used in the early days of battery development. A later variant of the Daniell cell called the gravity cell or crowfoot cell was invented in the 1860s by a Frenchman named Callaud and became a popular choice for electrical telegraphy. Like electrolytic solutions in ordinary batteries, fruits contain substances such as ascorbic acid, citric acid and NADH (chemical that generates cellular energy). These chemicals act as electrolytes and then undergo electrolysis. Electrolysis means a chemical change produced by passing electric current through an electrolyte. The electrons flow from the cathode to the anode through the electrolytes (juice). The cathode is the negative electrode, which could be the copper wire, and the anode is the positive electrode, which could be the zinc wire. This process generates electricity just the same way as a voltaic battery. Acidic foods can chemically generate an electric current.
Sources and discovery of electricity

There are six basic sources used for generating electricity. They are heat, light, friction, pressure, magnetism and chemical action. Of these, magnetism is the most important, contributing by far the largest portion of electrical production worldwide. Power generators, whether hydroelectric or fuelled by coal, oil, gas or nuclear power, all use magnetism as the actual means of electricity generation. Light, acting upon solar panels, is slowly gaining momentum, but has yet to make great inroads in commercial electricity production because of its cost. Electricity generated directly by heat, pressure and friction tend to be either very small--the microvolt output of a thermistor when exposed to heat, or the equally small output of a crystal microphone when subjected to sound pressure--or uncontrollable, as in the case of lightening, caused by friction. Chemical action in the form of batteries is both the oldest means of producing electrical current, and has had a great impact on our modern way of life. In 1791 Luigi Galvani discovered electrical activity in the nerves of the frogs that he was
42 42
Kurukshetra
April 2012
India is the largest producer of fruits and the second largest producer of vegetables in the world. At 180 Million MT/year in 2006-07, the annual production of fruits and vegetables in the country accounted for 18% of the total agricultural production. It is expected to touch 300 Million tonnes by 2011. Being fragile, fruit & vegetables are prone to damage by virtue of ambient conditions Deterioration also occurs during inevitable transportation from regional and clustered cultivation area to consumption centres. The biological process of ripening also reduces the shelf life of the produce. All this results show that the post harvest losses of about 25 40 % of production, leading to low per capita availability of fruits and vegetables in India. During the higher production period with less demand, fruits and vegetables can be used for operating household LED clock, calculators and to glow LED/LCD lamps.
Citrus Fruit
Acidic or Citrus fruits are best to conduct or even generate electricity. Examples include Grape Fruit, Lime and Orange. Acid in the fruits reacts with water and generates Hydrogen which is in ionic form and is positively charged (it lacks electrons). The acid takes electrons from the metal wire which is inserted in the fruit. This movement of charge helps in conducting or even generating electricity. The fruit juice is similar with metals and acids: a small amount of metal dissolves into solution and then there is an equilibrium. But if two different metals (Copper and Zinc) are inserted into fruits, the more active metal (zinc) bumps the more noble metal (copper) out of fruit solution.
The acidic juice allows a small amount of zinc and copper to dissolve in solution. But the zinc has a stronger propensity to go into solution so it drives the copper back out of solution. The net result is that copper dissolves from the copper electrode and deposits on the zinc electrode. Copper metal thus moves from the copper electrode to the zinc electrode (eventually completely coating it) in fruit juice. Copper, like all metals (and all materials) has electrons. When the copper dissolves into solution it leaves some of its electrons behind on the copper electrode and dissolves into solution as a positively charged ion, but those electrons that dont travel through the solution with the copper ions, must travel to the zinc electrode through the wire. This movement of electrons is electrical current. This is what any battery is: two different metals with a conductive solution between them. So its not that the orange produces electricity, it is that copper plus zinc plus orange juice as the conductive electrolyte make a battery. As a conductive solution, any electrolyte whether it is an acid, base or salt solution, which become ions when dissolved in water. They dissociate into particles of opposite charges. It is the ions that render the water conductive to electricity. As a matter of fact, the positive ions migrate to the negative electrode and vice versa for the negative ions. The lemon battery works well because the lemon juice is acidic. Try the same setup with other types of solutions. As you may know, other fruits and vegetables also contain juices rich in ions and are therefore good electrical conductors.
43
Kurukshetra
April 2012
43
Like any battery, batteries made from fruits and vegetables have a limited life. The electrodes undergo chemical reactions that block the flow of electricity. The electromotive force diminishes and the battery stops working. Usually, the hydrogen produces at the copper electrode and the zinc electrode acquires deposits of oxides which act as a barrier between the metal and the electrolyte. This is referred to as the electrodes being polarized. To achieve a longer life and higher voltages and current flows, it is necessary to use electrolytes better suited for the purpose. Commercial batteries, apart from their normal electrolyte, contain chemicals with an affinity for hydrogen which combine with the hydrogen before it can polarize the electrodes.
vegetables seem to have a stronger current flow. For resistance, it seemed that the more water in the fruit or vegetable, the less the resistance rating. This is because water is a conductor. Physical traits such as fruit weight, diameter, colour, firmness, and elasticity. Chemical traits were dry matter weight, titratable acidity, pH, and the contents of soluble solids, sugars, lycopene, carotene, and 12 aroma volatiles. A panel of trained assessors quantified sensory attributes: flavour (sweetness and sourness), aroma (overall aroma intensity, together with candy, lemon, citrus fruit, and pharmaceutical aromas) and texture (firmness, meltiness, mealiness, juiciness, and skin difficult to swallow) affect the quantum of electricity produced from fruits and vegetables. The magnitude of electricity generated by the particular fruits / vegetables can be correlated with the concentration of principle chemical compounds present in it. Therefore, the magnitude of electricity can be used to quantify / qualify the organic compounds such as organic acids, pigments, aroma, alkaloids and other pharmaceutical chemicals etc present in the fruits and vegetables. While listening to lessons about chemistry, many students may wonder why it was ever invented, if it was really ever necessary to invent it and if the world would be better off without it. The small experiments that follow are intended to interest these students in the study of chemistry and electrical phenomena. These simple and (it is hoped) interesting experiments can teach the fundamental concepts of electricity and chemistry without asking much of the student. Many of these demonstrations are easily adapted to various configurations and each can be done independently or as part of a full curriculum. (The authors are from Agricultural College and Research Institute, Agricultural University, Killikulam, Vallanadu 628 252, Thoothukudi District, TamilNadu, e-mail : subbiahjothimani@ gmail.com)
Electric potential (Volts) in various fruits and vegetables with different

metals of electrodes
Fruits Zinc/Steel Apple Orange Carrot Banana Lime Tomato Lemon Potato Cucumber 0.27 0.29 0.29 0.26 0.30 0.30 0.30 0.23 0.26 Electrodes Copper/ Steel 0.39 0.34 0.31 0.37 0.25 0.29 0.33 0.31 0.29 Zinc/Copper 0.82 0.76 0.75 0.73 0.71 0.70 0.70 0.64 0.60
The fruit or vegetable that had the strongest current flow was definitely the lemon with 2 micro amps. The least was the red potato with 0 micro amps. In terms of the resistance measured in ohms, the potato had the highest resistance rating with the probes close together with 6.0 to 9.5 ohms. The smallest rating with the probes close together was the banana with a rating of 3.0 to 4.0 ohms. Far apart, the highest rating was the banana ranging from 28.0 to 30.0 ohms. The smallest rating with the probes far apart was the apple. It ranged from 10.0 to 19.0 ohms.acidic fruits and
44 44
CARBON CREDIT AN ENVIRONMENT MANTRA

Dr. R. Amsaveni Mrs. S. Gomathi
India signed and ratified the Protocol in August, 2002 and has emerged as a world leader in reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs). India is the second largest provider of CDM project and Certified Emission Reductions (CERs) to annexure I countries. India is the beneficiary as far as carbon credits is concerned and is also in trading of carbon product through Indias multi-commodity exchange. lobal Warming is the increase of the Earths average surface temperature due to a buildup of greenhouse gases in the atmosphere. It may be caused due to climate change, Rapid industrial growth, increased energy consumption, increased carbon dioxide and other green house gas emission. Climate Change is a broader term that refers to long-term changes in climate, including average temperature and precipitation. Rising global temperatures are expected to raise sea level, and change precipitation and other local climate conditions. Changing regional climate could alter forests, crop yields, and water supplies. It could also affect human health, animals, and
many types of ecosystems. Deserts may expand into existing range lands, and features of some of our national parks may be permanently altered. Global warming is affecting plants, animals, humans and the earth. We need to learn how to conserve our use of fossil fuels to minimize carbon dioxide production. This will slow down the effects of global warming. The impacts of climate change are not evenly distributed the poorest countries and people will suffer earliest and most. And if and when the damages appear it will be too late to reverse the process. Thus we are forced to look a long way ahead. So our country has introduced
45
Kurukshetra
April 2012
45
carbon credit trading method for reducing global warming.
Carbon Credit
Carbon credit has emerged as an important instrument in the financial market. The primary goal is to reduce emission of green house gases. By permitting allowances to be bought and sold, an operator can seek out the most cost effective way of reducing its emissions, either by investing in cleaner machinery and practices or by purchasing emission from another operator who already has excess capacity. Carbon credits are key component of national and international emissions trading schemes. They provide means to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. These credits can be exchanged between businesses and can be bought or sold at prevailing market prices in international markets. Credits can be used between trading partners and around the world to finance carbon reduction schemes. There are many companies that sell carbon credits to commercial and individual customers interested in lowering their carbon footprint on a voluntary basis. This carbon off setters purchase credits from an investment fund or a carbon development company that has accumulated credits from individual projects. The quality of the credits is partly based on the validation process and partly on the sophistication of the fund or development company that acts as the sponsor to the carbon project, the reflection of which can be seen in the price. Typically, voluntary units have less value than the units sold through the rigorouslyvalidated Clean Development Mechanism. There are two types of market in carbon credit:
l Compliance l Voluntary
global warming and urged to reduce the emission of harmful gases that lead to green house gas that resulting to global warming and many countries came together and signed an agreement named as the Kyoto protocol. The Kyoto Protocol is a legally binding agreement that arose out of the United Nations Framework Concentration on Climate Change (UNFCCC) to tackle climate change through a reduction of green house gas emissions. The Countries (those listed in Annex I) are legally bound to reduce man-made green house gases emissions by approximately 5.2%. Individual countries have their own reduction targets outlined in Annex B of the Kyoto Protocol. It was adopted in Kyoto, Japan, on 11th December 1997. The main aim of Kyoto protocol is to make Stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent airpollution interference with the climate system.
Kyotoprotocol In India
India signed and approved the Protocol in the year of August, 2002. Since India is exempted from the framework of the treaty, it is expected to gain from the protocol in terms of transfer of technology and related foreign investments. The major responsibility of curbing emission rests with the developed countries, which have accumulated emissions over a long period of time.
Kyoto Mechanism
Kyoto is a cap and trade system that imposes national caps on the emissions of Annex I countries. On average, this cap requires countries to reduce their emissions 5.2% below their 1990 baseline over the 2008 to 2012 period. The types of Kyoto mechanisms are:
l l l Clean
Development Mechanism trading
Emissions Joint
implementation (JI)
Market (Annexure I countries)
Clean Development Mechanism

CDM is a mechanism whereby an Annex I party may purchase emission reductions which arise from projects located in non-Annex I countries. The carbon credits that are generated by a CDM
Market (Non-Annexure countries)
Kyoto Protocol
A decade ago people started to realize the
46 46
project are termed Certified Emission Reductions (CERs), expressed in tones of CO2 equivalent
Additional
Cdm Market
The CDM market is like any other commodity market. Majority of the trading is done in the Primary market. The secondary market is not as expanded as the primary mainly because of the high volatility of the carbon prices. The Buyers of CERs can be broadly classified into:
l l l Compliance Carbon l
source of foreign investment in developing countries which act as a catalyst in developing cleaner technology. funds can be channelized into building or improving project, thus reinvesting it for higher growth. to sustainable development where countries have strategic advantage from now in the terms of pollution.
CDM
Development of cleaner technologies leading
Buyers
l l l l l
Environmental
benefit due to lesser GHGs
emission.
Provide Reduce
Funds (e.g.: Carbon Fund of World
Bank)
Traders
carbon funds for Emission reduction project implementation, poverty electricity, and provide for in off-grid carbon rural
Emission Trading
Emissions trading (ET) is a mechanism that enables countries with legally binding emissions targets to buy and sell emissions allowances among themselves. Under an emissions trading system, the quantity of emissions is fixed (often called a cap) and the right to emit becomes a tradable commodity. The cap (say 10,000 tones of carbon) is divided into transferable units (10,000 permits of 1 tones ofcarbon each).
Provide Boost
employment sequestration, economic communities.
development
Demerits
l l Provision Due
of cheapest way of purchasing climate destroying right. to nature and process of complexity involved, foreign players may dominate domestic industries for the incentives if CERs.
Joint Implementation (Ji)

Joint implementation is a project-based mechanism by which one Annex I Party can invest in a project that reduces emissions or enhances sequestration in another Annex I Party, and receive credit for the emission reductions or removals achieved through that project. The unit associated with JI is called an Emission Reduction Unit (ERU). In simple terms Joint Implementation means transfer of emissions reduction at the project level.
l
CDM
investment could affect national development strategies, possibly adversely affecting national decision making processes. Until future commitment periods are agreed, the CDM may not provide incentives for financing long-term development projects and strategies. timeframe may not assist long-term development strategies as the timeframe is foreseeable till 2012 only. (Most projects developed with short term perspective). opportunity for less developed countries under this framework the mechanism leads to developed countries emitting more GHG inspite of their KYOTO caps. Historically they are the culprits
47 47
CDM
Merits and Demerits of Carbon Credit

Merits
l l Better
technologies for the company which is benefiting from generation of CERs. transfer from developed to developing countries (Due to low cost structure in developing countries.
April 2012
l l
No
Technology
Still
Kurukshetra
for GHG emissions. The developed countries purchase CERs rather than finding new ways of reducing emissions by technological development
Production of organic manure using controlled
aerobic composting.
Indias Potential
India has 474 projects registered with the United Nations, second only to Chinas 680. However, in terms of CERs, Indias share is just 11.63%, while Chinas is 58.75%. The Indian government has approved more than 1,455 CDM projects which can potentially make Rs 28,000-30,000 crore in export earnings. India has the second largest portfolio with a market share of 12%, trailing only behind China, which has a whopping market share of 61%. India, on its part, has generated around 30 million carbon credits, and approximately 140 million are in pipeline. Around 225 Indian projects in the fields of biomass, cogeneration, hydropower, and wind power with a potential of 225 million CERs have been registered. At present, the Indian solid waste management market is witnessing tremendous growth. Currently it is valued at around $155.56 million (Rs. 728 crores) and is expected to grow at a rate of around 20 to 25% in the next three to five years.
carbon Credit in India

India comes under the third category of signatories to UNFCCC. India signed and ratified the Protocol in August, 2002 and has emerged as a world leader in reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs) in the past few years. India is the largest beneficiary country for claiming about 31 % of the total world carbon trade through CDM. It is expected to rake in at least Rs 22,500 crore to Rs 45,000 crore over a period of time and Indian companies are expected to corner at least 10 per cent of the global market in the initial year.If India can capture a 10% share of the global CDM market, annual CER revenues to the country could range from US$ 10 million to 300 million.
Present Status
In India, due to increased population & commercial development, cities are facing problems of MSW (Municipal Solid Waste) disposal. The urban population in larger towns and cities in India is increasing at a decadal growth rate of above 40%. There are no Sanitary Landfill sites in India at present. Various processes/technologies available to reduce the amount of Municipal Solid Waste are as follows:
l l Physical
Conclusion
The rising pressure on countries to address climate change has paved the way for the rise of a multimillion dollar international market for buying and selling emissions of greenhouse gases. From the year 2001, the carbon market has captured the attention of Indian entrepreneurs. Majority of projects selling carbon credits so far include renewable energy (such as wind power, biomass cogeneration and hydropower), energy efficiency measures in several sectors (such as cement, petrochemicals and power generation) as well as the reduction of industrial gases that contribute to climate change. The carbon credits market is a liquid market as of now. (The Dr.R.Amsaveni is Associate Professor, and Mrs. S.Gomathi is Research Scholar, in Hindusthan College of Arts and Science, Behind Nava India, Coimbatore 641 028, e-mail : amsa_parthi@rediffmail.com and kavingoms@ gmail.com)
(a. Pelletisation)
Biochemical Thermal
(a. Aerobic Composting b. Anaerobic Digestion) (a. Incineration b. Gasification)
Among the above options/technologies following are considered as favourable to implement in India.
l l Pelletisation, Anaerobic
digestion using bio-methanation technology for production of power,
48 48

Kuruk April 2012

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Kuruk April 2012

Uploaded by

Copyright:

Available Formats

The Monthly Journal

Rural focus of budget 2012-13

A Quick Review from Rural Livelihood Perspective

Union Budget 2012-13:

Addressing Growth Issues

Rural Credit and Financial Inclusion

CRITICAL REVIEW OF THE UNION BUDGET 2012-13

Major emphasis for agriculture sector in Union Budget 2012-13

Rashtriya Krishi Vikas Yojana (RKVY)

Initiative of Bringing Green Revolution to Eastern India

Allocation of funds for the Major Schemes / Programmes in Agriculture Sector

Vidarbha Intensified Development Programme

National Mission for Protein Supplements

Accelerated Irrigation Benefit Programme

Subsidy provision for fertilizer sector

National Mission on Food Processing

Storage Capacity and Cold Chains

Agricultural Institutions that are being given grants

Rs 100 crore to Kerala Agricultural University

50 crore for University of Agricultural Sciences Dharwad, Karnataka

Rs 50 crore to Chaudhary Charan Singh Haryana

Key Features of Union Budget 2012-13 for Agricultural Sector

Tax rebate to Agriculture and Related Sectors

Remaining activities to be merged into following missions in Twelfth Plan:

Food Security Mission

National Mission on Agricultural Extension and

National Mission for Protein Supplement

Challenges ahead and outlook of Indian agriculture

National Mission on Food Processing

Tax rebate Agriculture and Related Sectors

DD/IPO/MO No. ________________________________________________Date____________________ Name (in block letters) Address

THE BUDGET AND RURAL DEVELOPMENT

Budgetary Allocation and its Utilization

Table 1: Financial Allocation of MGNREGS

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

0.28 0.26 0.56 0.66 0.54 1.02 0.78

Source: Budget Documents, Government of India.

State Expenditures and Household Wage Accruals:

Financial Implementation Issues:

Second Green Revolution:

To be cont. page 23.....

Poverty: According to NSS round [2004-05],

Hunger: In India, the right to food campaign

Child Nutrition: Despite the Integrated Child

Investment: The Gross Capital Formation

Food Security: Per capita availability of food

Focused Attention: Chronic problems of

Farm Credit: The credit flow to agriculture

Tenant Farmers: India has a large number of

Pattern of Land Leased for Farming by Rural Households by Percentage

Electricity Through Cogeneration:

Power Cogeneration in Industries (Non-Bagasse) Programme

Bagasse Based Cogeneration

New Initiatives for Promotion of Cogeneration inIndia

FROM THE GROUND

Indigenous Knowledge and Biodiversity conservation

Peoples Biodiversity Registers (PBRs)

Community Biodiversity Register (CBR)

Table 3 Institutional framework of Peoples Biodiversity Registers

Technical support agencies

Technical support group (TSG)

Local education Local science/ institutions educational institutions

Collective Action in Wayanad

Electricity from fruits and vegetables

DD/IPO/MO No. ____________________________Date Name (in block letters) Address