Motilal Nehru National Institute of

Technology
Allahabad - 211004, INDIA

A Project report on the schemes running in

Agriculture sector

Submitted By:-
Yasha Deep Srivastava
2010mb46

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 CHAPTER1

INTRODUCTION

1.1 History:-
Agriculture in India has a long history dating back to ten thousand years.
Indian agriculture began by 9000 BC as a result of early cultivation of plants,
and domestication of crops and animals. Settled life soon followed with
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implements and techniques being developed for agriculture. Double
monsoons led to two harvests being reaped in one year Indian products soon
reached the world via existing trading networks and foreign crops were
introduced to India. Plants and animals—considered essential to their
survival by the Indians—came to be worshiped and venerated. The middle
ages saw irrigation channels reach a new level of sophistication in India and
Indian crops affecting the economies of other regions of the world under
Islamic patronage. Land and water management systems were developed
with an aim of providing uniform growth. Despite some stagnation during
the later modern era the independent Republic of India was able to develop
a comprehensive agricultural program.

1.1.1 Early history:-

Wheat, barley and jujube were domesticated in the Indian subcontinent by

9000 BCE. Domestication of sheep and goat soon followed. Barley and wheat
cultivation—along with the domestication of cattle, primarily sheep and goat
—was visible in Mehrgarh by 8000-6000 BCE.

1.1.2 Vedic period (1500 BCE – 200 CE):-

In the later Vedic texts (c. 1000–500 BC), there are repeated references
to iron. Cultivation of a wide range of cereals, vegetables, and fruits is
described. Meat and milk products were part of the diet; animal
husbandry was important. The soil was plowed several times. Seeds were
broadcast. Fallowing and a certain sequence of cropping were
recommended. Cow dung provided the manure. Irrigation was practiced.

1.1.3 Early Common Era – High Middle Ages (200–1200

CE):-

Systematic ploughing, manuring, weeding, irrigation and crop protection was

practiced for sustained agriculture. Water storage systems were designed
during this period. Kallanai (1st-2nd Century CE), a dam built on river Kaveri
during this period, is considered the as one of the oldest water-regulation
structures in the world still in use.

1.1.4 Late middle Ages – Early Modern Era (1200–1757

CE):-

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The construction of water works and aspects of water technology in India is
described in Arabic and Persian works. The diffusion of Indian and Persian
irrigation technologies gave rise to irrigation systems which bought about
economic growth and growth of material culture. Agricultural 'zones' were
broadly divided into those producing rice, wheat or millets. Rice production
continued to dominate Gujarat and wheat dominated north and central India.
Many crops introduced to India during this period of extensive global discourse:

1.1.5 Colonial British Era (1757–1947 CE):-

Few Indian commercial crops—such as Cotton, indigo, opium, and rice—

made it to the global market under the British Raj in India. The second
half of the 19th century saw some increase in land under cultivation and
agricultural production expanded at an average rate of about 1 percent
per year by the later 19th century. Due to extensive irrigation by canal
networks Punjab, Narmada valley, and Andhra Pradesh became centers of
agrarian reforms.

1.1.6 Republic of India (1947 CE onwards):-

Special programs were undertaken to improve food and cash crops supply.
The Grow More Food Campaign (1940s) and the Integrated Production
Programme (1950s) focused on food and cash crops supply respectively.
Five-year plans of India—oriented towards agricultural development—soon
followed. Land reclamation, land development, mechanization,
electrification, use of chemicals—fertilizers in particular, and development of
agriculture oriented 'package approach' of taking a set of actions instead of
promoting single aspect soon followed under government supervision

1.2 Problems faced by farmers:-

Slow agricultural growth is a concern for policymakers as some two-thirds of
India’s people depend on rural employment for a living. Current agricultural
practices are neither economically nor environmentally sustainable and
India's yields for many agricultural commodities are low. Poorly maintained
irrigation systems and almost universal lack of good extension services are
among the factors responsible. Farmers' access to markets is hampered by
poor roads, rudimentary market infrastructure, and excessive regulation.
—World Bank: "India Country Overview 2008"

The low productivity in India is a result of the following factors:

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 • According to World Bank, Indian Branch: Priorities for Agriculture and
Rural Development", India's large agricultural subsidies are hampering
productivity-enhancing investment. Overregulation of agriculture has
increased costs, price risks and uncertainty. Government intervenes in
labor, land, and credit markets. India has inadequate infrastructure
and services. World Bank also says that the allocation of water is
inefficient, unsustainable and inequitable. The irrigation infrastructure
is deteriorating.
• Illiteracy, general socio-economic backwardness, slow progress in
implementing land reforms and inadequate or inefficient finance and
marketing services for farm produce.
• Inconsistent government policy. Agricultural subsidies and taxes often
changed without notice for short term political ends.
• The average size of land holdings is very small (less than 20,000 m²)
and is subject to fragmentation, due to land ceiling acts and in some
cases, family disputes. Such small holdings are often over-manned,
resulting in disguised unemployment and low productivity of labor.
• Adoption of modern agricultural practices and use of technology is
inadequate, hampered by ignorance of such practices, high costs and
impracticality in the case of small land holdings.
• Irrigation facilities are inadequate, as revealed by the fact that only
52.6% of the land was irrigated in 2003–04, which result in farmers
still being dependent on rainfall, specifically the Monsoon season. A
good monsoon results in a robust growth for the economy as a whole,
while a poor monsoon leads to a sluggish growth. Farm credit is
regulated by NABARD, which is the statutory apex agent for rural
development in the subcontinent. At the same time over pumping
made possible by subsidized electric power is leading to an alarming
drop in aquifer levels.

1.3 Motivation:-
.

The Indian Agricultural Research Institute (IARI), established in 1905, was

responsible for the research leading to the "Indian Green Revolution" of the
1970s. The Indian Council of Agricultural Research (ICAR) is the apex body
in agriculture and related allied fields, including research and education.[7]
The Union Minister of Agriculture is the President of the ICAR. The Indian

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Agricultural Statistics Research Institute develops new techniques for the
design of agricultural experiments, analyses data in agriculture, and
specializes in statistical techniques for animal and plant breeding.

Recently Government of India has set up Farmers Commission to completely

evaluate the agriculture program... However the recommendations have had
a mixed reception.

1. mixed farming

In August 2001 India's Parliament passed the Plant Variety Protection and
Farmers' Rights Act, a sui generis legislation. Being a WTO member, India
had to comply with TRIPS and include PVP. However, farmers' rights are of
particular importance in India and thus the Act also allows for farmers to
save, sow and sell seeds as they always have, even if it is of a protected
variety. This not only saves the livelihoods of many farmers, it also provides
an environment for the continuing development and use of landraces.

1.4 Field of study:-

Work in this area may be broadly divided into the following categories:-
Agricultural economic policy and development
Food economics and statistics
Trade in agriculture
Agro-economic research
Area, production and yield estimates
Statistics of investment, growth, wages, employment, Costs, Prices,
trade and related variables in agriculture.
Collection, collation, dissemination and publication of Agricultural
Statistics
National crop forecasting (Crop& Weather Watch Group Meetings and
operationalisation of New Schemes on FASAL and Extended Range Weather
Forecast)
Economic and Statistical work involved in important adhoc assignments
like Revision of base of WPI for Agricultural Commodities, Conduct of
National/International Conferences, etc.

1.4.1 Agricultural Economic Policy and

Development:-

Price policy for agricultural commodities constitutes an important element of

overall agricultural economic policy. Minimum Support Prices (MSPs) for
important cereals, pulses, oilseeds, and other commercial crops, namely,

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cotton, jute and sugarcane, are fixed by the Government every year on the
basis of the recommendations made by the Commission for Agricultural
Costs and Prices (CACP).

The most important factor considered by the CACP in making its

recommendations on MSPs for different crops is the cost of
cultivation/production for which the database is provided by the DES through
its plan scheme for study on cost of cultivation. Analysis of various price
policy issues in the emerging socio-economic environment requires advance
information on the production of different crops, supply-demand scenario, as
well as regular monitoring of price movements in both the domestic and
international markets.

In keeping with the need to adopt a holistic approach to the implementation

of individual schemes with inter-related objectives, it has been
proposed/decided to merge the on-going plan schemes into three broad
umbrella schemes. The details of these schemes, with special reference to
the component schemes, are given below.

1.4.1.1 Studies on Inputs for Agricultural Economic Policy

and Development:-

Comprehensive Scheme for Studying the Cost of Cultivation of

Principal crops in India:

The Comprehensive Scheme for Studying the Cost of Cultivation of Principal

Crops in India is being implemented since 1970-71 as a Central Sector Plan
Scheme on the basis of recommendations made by the Standing Technical
Committee on Indices of Input Costs.

The main objectives of the scheme are as follows:-

Collection and compilation of field data on cost of cultivation and cost of
production in respect of 28 crops;
Generation of estimates of cost of cultivation and cost of production of
various crops in different States covered under the scheme; and
Construction of the indices of terms of trade between agriculture and non-
agriculture sectors.

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Agro-Economic Research Scheme:-

The Agro-Economic Research Scheme is an old Scheme started in 1954-55

for undertaking research studies on agro economic problems of the country.
The Scheme is being implemented through 12 Agro-Economic Research
Centers and 3 Units which are fully funded by the Government through
Central Sector plan Scheme. These Centers have been established to take
up problem oriented studies on regional basis with a view to generate the
requisite feedback from the grass-root level, to facilitate effective
monitoring of various programmes/schemes implemented in the entire
country. While the Units mainly undertake inter-regional and all India level
studies, the Centers conduct studies at the state level. On an average 40-45
research studies are completed annually by these Centers, which relate
to various economic problems in agriculture, animal husbandry, water
management and allied areas.

Planning and Management of Agriculture:-

In order to facilitate a systematic assessment of the impact of these changes

on the farm economy with focus on the state of Indian farmers, a Central
Sector Scheme-Planning and Management of Agriculture- was formulated.

The scheme also includes the provision for Millennium Study on the state of
Indian Farmers, which provide inputs for policy formulation from a long-term
perspective. With a view to assessing the impact of past policies and
programmes on the economic well-being of the farmers, which has generally
escaped attention of researchers, a mega study entitled “State of the Indian
Farmer – A Millennium Study” was taken up by the Department of
Agriculture and Cooperation during the Ninth plan. Phase – I of this study
pertained to a retrospective analysis of the agricultural development
experience in the post-independence era.

Strengthening of Agricultural Statistics & Agricultural Policy

Formulation:-

This is a Central Sector Plan-Scheme. The objective of this scheme is to

strengthen the system of agricultural statistics and policy formulation by
strengthening the research techniques and upgrading of skills of personnel
involved in the compilation and analysis of data. Towards this end, a
National Workshop is held every year in which a large number of
representatives from Ministry of Agriculture, Central Statistical Organization.
National Sample Survey Organization, Department of Space, Commission for

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Agricultural Costs and Prices, State governments, Research Institutions like
Indian Agricultural Statistics Research Institute (IASRI) and State
Agricultural Universities participate.

1.4.1.2 Improvement of Agricultural Statistics:-

Agriculture Statistics Improvement (ASI) Division in the DES deals with

implementation of Plan scheme viz. “Improvement of Agricultural Statistics”.
The basic objective of the Scheme is to collect and improve agricultural
statistics of Principal Agricultural Crops and selected Horticultural Crops. The
Scheme has four components namely:

Timely Reporting Scheme,

Improvement of Crop Statistics,

Establishment of an Agency for Reporting of Agricultural Statistics (EARAS)

Crop Estimation Survey on Fruits & Vegetables. The component-wise

details of the Scheme are given as under.

Timely Reporting of Estimates of Area and Production of Principal

Crops (TRS):-

The objective of this component is to obtain estimates of area of principal

crops, in each season, with breakup of area under irrigated/unirrigated and
traditional /high yielding varieties of crops on the basis of priority
enumeration conducted on the basis of random sample of 20% of villages by
a specific date. The States are required to furnish these estimates by 30th
November for Kharif Crops and by 30th April for Rabi crops. These estimates
are used for generating advance estimates of production of principal crops.
This component is being implemented in 16 land record States and also
Union Territories of Delhi and Pondicherry. This component has funding
pattern on 50:50 basis between the Central Government and State
Governments.

Improvement of Crop Statistics (ICS):-

The objective of this component is to improve the quality of statistics of area

and production of crops through supervision and monitoring. Under this
component, a sample check of area enumeration and crop cutting

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experiments of 10,000 villages and approximately 31,000 experiments at
harvest stage are undertaken. These samples are equally shared by the
Central Agency, i.e. National Sample Survey Organization and the State
Agricultural Authorities. These checks specifically relate to (i) Enumeration of
crop-wise area covered in the selected villages as recorded by the Patwari.
(ii) Total of the area under each crop recorded in Khasra Register of villages
and (iii) Supervision of crop cutting experiments at the harvest stage. This
component is being implemented in all TRS States and the Union Territory of
Pondicherry. The performance of the implementation of this component also
is being closely monitored through Quarterly and Seasonal progress Reports.

Establishment of an Agency for Reporting of Agricultural Statistics

(EARAS):-
This component is being implemented in the permanently settled States of
West Bengal, Kerala, Orissa and North Eastern States of Nagaland, Sikkim,
Arunachal Pradesh and Tripura. Under this component, an agency has been
established in these States for generating estimates of area and production
of principal crops and land use statistics, on the basis of complete
enumeration of 20% villages in each year. The performance of the
implementation of the component is being closely monitored through
Quarterly and Seasonal Progress Reports.

1.4.1.3 Forecasting and remote sensing application in crop

husbandry:-

1. Remote sensing application in crop assessment and forecasting:

The Central Sector Umbrella Scheme viz. ‘Forecasting and Remote Sensing
Applications in Crop Husbandry’ during the Tenth Five Year Plan includes
following three components.
National Crop Forecasting Centre (NCFC)
Crop Acreage and Production Estimates (CAPE)
Special Data Dissemination Standards (SDDS)
• National Crop Forecasting Centre (NCFC)

NCFC was created at the end of the year 1998 and was set up mainly with
the following functions:-

Periodic crop forecasting for major crops

Co-ordination and assimilation of various methodologies and technical
advancement relating to crop forecasting. However, over the time, its
sphere of activities has been expended to:

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 Providing effective unified institutional framework for the entire crop
forecasting system in the country involving data flow, assimilation, analysis
and dissemination of statistics.

Periodic crop forecasting for major crops through assimilation of

information generated by the different organizations such as IMD, Medium
Range Weather Forecasting of Department of Science & Technology,
Department of Space (DOS), Central Statistical Organization (CSO), Indian
Agricultural Statistics Research Institute (IASRI), Field Operations Division of
the National Sample Survey Organization (NSSO) and the State Agriculture
Statistics Authorities (SASAs), State Agriculture Departments etc.

Co-ordination and assimilation of various methodologies and technical

advancement relating to crop forecasting.

Central level monitoring of the situation about crop, weather, supply of

inputs, pests/diseases and related aspects through the mechanism of Crop &
Weather Watch Group in the Department of Agriculture & Cooperation.

Providing a forum for the Standing Technical Committee on Agricultural

Statistics to review and monitor the development of the methodologies for
crop forecasting in particular and Agricultural Statistics in general, which has
already been constituted as a follow up of the recommendation No. 8 of the
Expert Group.

Market Intelligence and Price Analysis:-

The DES also collects and compiles wholesale and retail prices, international
prices and market arrivals of essential commodities on weekly/monthly basis
for 700 centers (for wholesale prices) and 83 centers (for retail prices)
spread all over the country. Out of these price quotations, about 216
quotations on wholesale prices are being disseminated through E-mail to the
Office of Economic Adviser, Ministry of Industry, for construction of
Wholesale Price Index Numbers on weekly basis. The price quotations
collected are also disseminated in the form of weekly bulletins and circulated
through E-mail to concerned offices. Besides, daily wholesale prices of some
important agricultural products, in respect of Hapur and Delhi are also being
supplied to All India Radio for Broadcasting.

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APY (Area production and yield):-

The objective of this component is to obtain estimates of area and

production of principal crops, in each season, with a break up of area under
irrigated/unirrigated and traditional/high yielding varieties of crops on the
basis of priority enumeration conducted in a sample of 20 per cent of
villages by a specific date. The States are required to furnish these estimates
by 30th November for Kharif Crops and by 30th April for Rabi crops. These
estimates are used for generating advance estimates of production of
principal crops. This component is being implemented in 16 land record
States and also Union Territories of Delhi and Pondicherry. CAPE (Crop
Acreage and Production Estimation):-

CAPE is a Central Sector Scheme. It was initiated during the 7 th Five Year
Plan as one of the components of the scheme named ‘Remote Sensing
application mission for agricultural application’ (RSAMAA). The scheme was
initially monitored by the crops division, but later on was transferred to DES.
The scheme is funded by the Ministry of Agriculture and operated by the
Dept. of Space, Ministry of Science and Technology, Govt. of IndiaCES (Crop
Estimation Survey):-

This component before merger with Umbrella scheme was a Centrally

Sponsored Plan Scheme of the 9th Five Year Plan. This is being implemented
since the Sixth Plan to generate estimates of area and production of fruits,
vegetables and minor crops in the country. The component is presently
being implemented in 11 States and a total of 14 crops are covered: 7 each
of fruits and vegetables. The methodology developed by the Indian
Agriculture Statistical Research Institute, is being used for generation of
these estimates. Budget Estimates of Rs. 40000 thousand has been provided
for the year 2002-03 under this component.

COC (Cost of Cultivation):-

The Comprehensive Scheme for studying the Cost of Cultivation of Principal

Crops in India is being implemented since 1970-71 as a 100% Central
Sector Plan Scheme on the basis of recommendations made by the Standing
Technical Committee on Indices of Input Costs. The main objectives of the
scheme are as follows:-

Collection and compilation of field data on cost of cultivation and cost of

production in respect of 29 crops.

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 Estimation of crop-wise and state-wise costs of cultivation and
production.

Computation of the indices of terms of trade between agriculture and

Non-agriculture sectors.

1.5 Conclusion:-
Strengthening of agriculture will help in upliftment of the farmers but also
benefit the larger section of the rural poor who are directly engaged in
agriculture or indirectly linked with agriculture as consumers. Efficient way of
production, stabilized prices, higher income from agriculture would create a
more conjugative environment in the country for the development of the
economy as a whole and of rural population in particular. One of the most
important component of the much needed reforms is not only
implementation of the policy in time but also simultaneous review and
evaluations of the impact of the policies and taking immediate steps to
rectify the negative impacts if caused by any of the policies. Inter sectoral
linkages and organization of the agricultural sector needs to be taken up.
Sustainability is another key issue. In the present context sustainability with
natural resource management has become more relevant. The visible
institutional changes with new models of marketing and cultivation should be
supported by government policies too. Priority investment areas identified
need to be worked on without loss of time. Risk management and incentive
based system will motivate farmers to efficient agriculture. Empowerment of
the small and marginal farmers through education, reforms and
development will ensure a better, efficient and strengthened Indian
agriculture. Motivation new models in production and marketing along with
creating awareness and imparting education to small farmers will help in
development of the sector and more importantly improving the economic
status of poor farmers. The action plan to strengthen agriculture in India
needs to be on domestic reforms through reduction of government
intervention in the market economy but playing major role as evaluator and
implementation of the policies, increased investment and prioritizing the
area to invest, parallel action plans in this direction are needed in research
to increase productivity and irrigation and water management.

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 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction:-
2.1.1 Growth in education of agriculture in India:-

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All of us have time and again said that India is primarily an agrarian society.
Even today almost 70% of the population depends on agriculture, but in the
last century, the country’s economic and social life revolved around
agriculture and peasants. Therefore, organizing the peasantry was essential
for getting freedom. However, there was really no serious concern about
agriculture. It was only when there was failure of crops due to drought,
floods, crop diseases etc. resulting in famine conditions that the Government
had to wake up. Therefore, management of famine was the responsibility or
the job of the Home Department. There was no Department of Agriculture in
British India until1870 when a proposal was made to establish a Department
of Agriculture and Commerce. This did not happen because there were
droughts or famines which caused thousands of deaths, but because of civil
war in America in 1863–64, the supply of cotton to textile mills in
Manchester was affected. Therefore, the British Government was exploring
the possibility of getting cotton. India had the potential to supply cotton to
Britain. Therefore, Lord Mayo the Governor General requested creation of a
Department of Agriculture and Commerce. He indeed wanted to help Indian
agriculture besides growing cotton. But what were approved in 1871 were
the Department of Revenue, Agriculture and Commerce. Earlier, there was
the need of veterinarians to look after the health and breeding of horses
which were used by the army.

2.1.2 Agricultural universities and rural service sector:-

One of the major achievements of agriculture management systems was to
recognize the need of integration of re-search, education and extension. All
agricultural university-ties have separate Departments of Agriculture
Extension, which not only teach the principles of extension but in fact
practice it also. They have developed various techniques of demonstration
and communication. However, in all the states, Departments of Agriculture
exist and are responsible for the extension services in the concerned state.
Therefore, we might ask the following:
1. What is the relationship and interaction between the university
departments and the State Agriculture Department?
2. Could the success or failure in transfer of technology be attributed to the
University Extension Department or the State Department?
3. How have the concepts and needs of extension been changing in the last
three decades?
Let us recount the mechanism of transfer of technologies from the
agricultural universities to farmers. We may also ask whether the spread of
rice and wheat production technology was the result of scientists–
extension nexus or considerably due to farmer-to-farmer communication.

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The agricultural technology is based on the following biophysical
factors:
• Understanding of location-specific climate/weather.
• Soil characteristics, including its physical, chemical and biological
properties.
• Appropriate soil treatment.
• Assessment of suitability of crops for a crop season.
• Knowledge and assessment of different diseases, insect pests, nematodes
and weeds and their potential for competition with different crops.
• Availability and arrangement of the various inputs, crops varieties with
alternative choices, water, fertilizers, pesticides, energy source and labor.
• Facility for availability of seed material and its testing or other plant
material.
• Time management for different operations for the success of agricultural
production.
All the above timely operations are necessary for successful crop production.
However, an extension worker can communicate the desirable operations
but hardly has mechanism at his/her disposal to implement the
recommendation. Most extension workers in the State Departments of
Agriculture are not adequately equipped with the desired knowledge. The
result could be that an area of high production potential remains a low or
poor production region. When we talk of transfer of technology it is not a few
farmers or few hectares of land. We indeed have most of the desirable
technologies but their dispersal would not occur except in those cases where
it is seed-based, and that too of a self-pollinated crop such as wheat and
rice. This can happen, and indeed does happen from farmer to farmer. But it
requires understanding of seed production and storage.

2.1.3 What is needed now?

Agriculture in its broadest sense remains the most important sector of the
society even though its contribution to economy might have declined.
Agriculture remains and will remain the source of food supply in the world.
But agriculture is a part of the rural society and culture. Therefore,
improvement of agriculture means the improvement of rural society,
environment and quality of life. This includes housing, sanitation, health
care, energy, water supply, road and telecommunication, rural industry,
literature and arts. If today in India we think of PanchayatRaj institution,
there is also a need for the people to know about its management and legal
systems. Thus when agriculture is talked in isolation we deprive students of
the aspects of social development.
We have come a long way since the establishment of first University of
Agricultural Science and Technology and has made a significant contribution
towards crop improvement. However, in the process crop variety has been
made so important that it became the central theme of crop production and
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also synonymous with agriculture and rural development. Then we talk and
look for the basis of sustainable agriculture without holistic thinking.

2.2 Government schemes:-

After facing so much problem government starts operating schemes for the
welfare of the farmers. In present time there are lot of schemes are
operated by the government in which some are as follows:-

2.2.1 National food security mission:-

2.2.1.1 Introduction:-
The National Development Council (NDC) in its 53rd meeting held on
29thMay, 2007 adopted a resolution to launch a Food Security Mission
comprising rice, wheat and pulses to increase the production of Rice by 10
million tons, Wheat by 8 million tons and Pulses by 2 million tons by the end
of the Eleventh Plan (2011-12). Accordingly, a Centrally Sponsored Scheme,
‘National Food Security Mission’ (NFSM), has been launched from 2007-08 to
operationalise the above mentioned resolution.
The National Food Security Mission will have three components
(i) National Food Security Mission – Rice (NFSM-Rice);
(ii) National Food Security Mission – Wheat (NFSM-Wheat); and
(iii) National Food Security Mission – Pulses (NFSM-Pulses).

2.2.1.2 Mission Objectives:-

• Increasing production of rice, wheat and pulses through area
expansion and productivity enhancement in a sustainable manner in
the identified districts of the country;

• Restoring soil fertility and productivity at the individual farm level;

• Creation of employment opportunities; and

• Enhancing farm level economy (i.e. farm profits) to restore confidence

amongst the farmers.

2.2.1.3 Strategy:-
To achieve the above objectives, the Mission would adopt following
strategies:
• Implementation in a mission mode approach through active
engagement of all the stakeholders at various levels;

• Promotion and extension of improved technologies i.e., seed,

Integrated Nutrient Management (INM) including micronutrients, soil
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 amendments, and Integrated Pest Management (IPM) and resource
conservation technologies along with capacity building of the farmers;

• Flow of fund would be closely monitored to ensure that interventions

reach the target beneficiaries on time;

• Various interventions proposed would be integrated with the district

plan and targets for each identified district would be fixed; and

• Constant monitoring and concurrent evaluation for assessing the

impact of the interventions for a result oriented approach by the
implementing agencies.

2.2.1.4 Area of Operation of Food Security Mission:-

• NFSM – Rice, NFSM – Wheat and NFSM – Pulses will be implemented
in identified districts of different States.

• The GC, based on the latest available data, is empowered to include or

exclude the districts for implementation of various components of the
Mission.

2.2.1.5 Mechanism of Fund Flow:-

• Funds for implementing the Mission’s programme will be directly
released to the State Level Agency with the approval of the NFSMEC.
The State Level Agency would make funds available to the District
Level Agency in accordance with approved programme of the district.
Funds would be released in installments based on the progress reports
and submission of utilization certificates.

• The funds for the implementation of the activities of the components

will be released by the State/District Level Agency to the nodal
departments which will procure the required inputs for the district. The
nodal departments will submit the utilization certificate to the
State/District level Agency which, will be compiled and a consolidated
utilization certificate, duly authenticated by the DFSMEC and SFSMEC
will be submitted to the Ministry of Agriculture, Govt. of India for
further releases.

• As far as possible ‘electronic banking’ will be used for transfer of funds

to the State Level Agency and to the districts. The State Level Agency

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 will have to maintain a separate budget and prescribed accounting
system for the Mission, both at the State and district level.

2.2.1.6 Monitoring:-
• The National Food Security Mission will have a strong mechanism of
monitoring and evaluation with the involvement of all the
implementing agencies and the line departments. At the district level,
monitoring will be undertaken by DFSMEC supported by the Project
Management Team.

• Close monitoring of physical and financial targets of various program

interventions would be done by the monitoring teams. Format for
monitoring these interventions would be prescribed by NFSMEC.

• The State Department of Economics and Statistics will be involved in

adopting the prescribed format for data collection pertaining to
different parameters of the Mission for monitoring to suit the local
requirements.

• At the State level, the activities of the Mission will be monitored by a

Committee to be constituted under the Chairmanship of the State
Mission Director with members from the line departments, SAUs, lead
banks, ICAR institutes and the national crop development directorates
nodal for the State.

• At the National level, the activities of the Mission will be monitored by

a Committee to be constituted under the Chairmanship of the Mission
Director with members from Department of Agriculture & Cooperation,
Indian Council of Agricultural Research, SAUs, Directorate of Rice,
Wheat and Pulses Development, research institutions concerned and
officials of State Departments concerned.

• Directorate of Rice/Wheat/ Pulses Development will be the convener of

the Committees for the identified states, i.e., the Directorate of Wheat
Development, Ghaziabad for the northern States; the Directorate of
Rice Development, Patna for the eastern States; and the Directorate of
Pulses Development, Bhopal for the Central and the southern States.

2.2.1.7 Evaluation:-

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 • A baseline survey will be conducted by the State Department of
Economics & Statistics to know the resource endowments of the
farmers and the level of productivity.

• Concurrent Evaluation will be done every year. The State Statistical

Department would be responsible for conducting this evaluation to
assess the performance of the Mission commensurate with its
objectives.

• In the 3rd year of implementation of the NFSM, a mid-term evaluation

at the National Level will be undertaken through an independent
agency/organization on its performance and shortcomings so as to
take the remedial measures / make required changes in the scheme
and its method of implementation.

• An Impact Evaluation Study at the National Level will also be

undertaken through an independent agency after the third year of
implementation to assess the impact of the scheme in increasing the
productivity of rice, wheat and pulses, crop diversification, and
enhancement of farmers’ income.

• Information communication technology will be used for monitoring and

evaluation of the Mission. Specialized tool/format/ software for the
monitoring and evaluation of the Mission’s activities would be
developed.

2.2.2 ATMA scheme:-

2.2.2.1 General Instructions for Implementation of ATMA

Programme:-
1. The Chief Executive Officers of the Zilla Panchayats, who are the
Executive Directors of District Level ATMA Steering Committees, shall
guide/facilitate the Line Departments to execute the approved activities
strictly as per GOI norms
2. The District Joint Directors of Agriculture and Taluka Assistant Directors
of Agriculture, who are the Member Sectaries of District and Taluka Level
Committees, are requested to ensure proper and successful implementation
of the project through effective coordination among the line departments
and all the other concerned organizations/institutions.
3. Meetings of the District Level ATMA Steering Committees and Taluka
Level ATMA Implementation Committees shall be regularly convened and

20
decisions shall be taken there on, for timely implementation of the
programme.
4. Field Activities shall be carried out in accordance with GOI approval and
strictly as per the ceiling limits for the present ongoing activities.
5. Acknowledgements for the funds received shall be sent to the SAMETI RC
(South) immediately and due action shall be taken to provide the funds to
the implementing officers, without any further delay.
6. They shall ensure audit of their ATMA accounts by Charted Accounts and
furnish the same to the Department, so that the same is submitted to the
GOI for further release of grants.
7. There shall be perfect coordination among all the Line Departments, duly
ensuring proper allocation of funds for carrying out extension activities, as
per the identified needs, while preparing SREPs.
8. Timely implementation of activities is a must to ensure higher success
rate.
9. Issues to be observed while utilizing funds:
• A minimum of 10 per cent of the allocations shall be utilized through
the NGOs, Agri Business and Agri Clinic Entrepreneurs, Input Dealers
and others.

• Reservation shall be given for SC, ST, OBC, Minorities, Women

Farmers as per the norms of the State and Central Governments.

• Services of Contractual Staff shall be utilized as per norms of GOI.

10. Progress Reports shall be sent in prescribed formats within 5th of the
succeeding months.
2.2.2.2 Concept of farm school and related cost norms/ceilings:-
1. The National Commission on Farmers has recommended that Farm
Schools may be established in the fields of outstanding farmers. Such Farm
Schools will be based on the principals of “learning by doing” as well as
‘seeding and harvesting is believing with focus on farmer-to farmer
extension. The Farm School would help in developing a cost effective
extension system.
2. The key features of the Farm Schools to be promoted under the ATMA
programme are given below:
a. Farm Schools would be operationalized at Block/Gram Panchayat level.
b. These would be set up in the field of outstanding farmers and awareness
of nationally recognized awards for farmers. These could also be set up in a
Government / Non-Government Institutions.
c. “Teachers” in the Farm Schools could be progressive farmers, extension
functionaries or experts belonging to Government or Non-Government
Sector.

21
d. One of the main activities of Farm Schools would be to operationalise
Front Line Demonstrations in one or more crops and/or allied sector
activities. These demonstrations would focus on Integrated Crop
Management including field preparation, seed treatment, IPM, INM etc.,
e. Farm Schools would provide season long technical back stopping/training
to target farmers.
f. The “students” of Farm Schools would be leaders of Commodity Interest
Groups (CIGs) formed in different village and other farmers.
g. “Students” would visit Farm Schools as per specified schedule or as may
be necessary “Teachers” may also visit students as and when necessary.
3. Knowledge and skills of ‘teachers’ would be upgraded on continuous basis
through training at district/state/national level institutions and exposure
visits, etc.
4. In addition to technical support through Farm Schools, knowledge and
skill of “students” may also be upgraded though training at district/state
level and exposure visits, etc.,
5. “Students” would have the responsibility of providing extension support
to other farmers in the respective village or neighboring villages.
2.2.3 National watershed development scheme:-
2.2.3.1 Introduction:-
A National Watershed Development Programme for Rain fed Areas
(NWDPRA) project was implemented in the period 93-97 in the same micro
watershed, but without including the area to the south west of the
Cherpulasseri -Pattambi road. The objectives of this project are: stabilization
of hill slopes, regeneration of vegetative cover and improvement in
productivity of fuel, fodder and crop using low cost innovative techniques,
developing awareness of integrated watershed among the community and
generation of ample local employment. This project was completed in 1997.
Since IRTC is having enough benchmark data about this watershed, we
thought that we could do a post project assessment of the NWDPRA project
implemented at Nellaya.
The present study was originally intended to make a comprehensive
assessment, both qualitative and quantitative, of the NWDPRA project.
However, the objectives were modified due to the winding up of the KRPLLD
project and subsequent shortening of the project period. The modified
objectives are
To assess the effects of watershed development activities perceived by the
watershed community with respect to soil erosion, soil moisture content,
soil fertility, crop yield, increase in crop area and increase in milk yield.
To assess the awareness on natural resources conservation achieved among
the people through the implementation of the project. To study the conflicts
aroused if any, due to the over exploitation of ground water and mechanism
developed to overcome the conflicts.
2.2.3.2 Methodology:-

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Since a field study to quantify gains requires data collection over a long
period of time, it was decided to assess the gains of the NWDPRA project
based on the perception among the different stakeholders. The different
stake holders of the project are: direct beneficiaries and non beneficiaries
living in the project area, the Mitra kisans who played a major role in the
implementation of the project, the employees of agriculture and allied
departments directly involved in the project implementation, the office
bearers of the gram panchayat body and the contractors who were involved
in the execution of different construction works related to the project
 Random sample survey

For getting the response of the people of the watershed, area a field survey
was conducted using an interview schedule among 10% households selected
employing the method of random sampling. Starting from the ridge line of
the watershed the 1st, 11th, 21st, 31st ---------- houses were selected for
detailed survey by counting the houses based on their geographical spread.
In fact, this resulted in the selection of proportionate number of households
from the ridge, midland and valley portions.
 Selected Interviews

The actors who played an important role in the formulation and

implementation of the project were interviewed using the technique of open-
ended dialogue; officials, Mitra kisans, people’s representatives and some
farmers who could achieve good results from project activities were
interviewed in this way
 Case studies

Case studies were made to find out the problem over exploitation of
groundwater in this watershed development project area and the social
problems it has created.
 Quantitative assessment of water level improvement

To have a quick estimate of the ground water improvement or depletion, the

water levels in the control wells whose benchmark water table data are
available, are taken.
 Survey of bore wells in the watershed area

The overdraft of deep ground water is taking place in this watershed due to
th e proliferation of bore wells. To have an idea of the quantity of water thus
extracted, the depth, capacity of pump fitted, duration of pumping every
day, the year of installation etc, were taken in most of the bore wells coming
in the watershed area.
 Collection of secondary data

23
To find some correlation between rainfall and water availability, rainfall data
of the last fifteen years were collected from the nearest rain gauge station at
Regional Agriculture Research Station, Pattambi. The different registers
regarding the watershed project available at the Krishibhavan, Nellaya,
Participatory Resource Maps kept at Grama Panchayat office, Nellaya, milk
collection details at Pengattiry milk society etc were scanned to collect
relevant details.
2.2.3.3 The NWDPRA project: formulation and implementation:-
National Watershed Development Programme for Rain- fed Areas was a
Government of India project implemented during the 8 th plan period (from
1992 to 1997). The scope of its coverage was both arable and non-arable
land. It provided assistance for both conservation and production system. It
was implemented in seven broad ecosystems namely plain, plateau, hills,
sivaliks, arid, coastal and ravine areas. 25% of the project fund was for
basic activities and 75% for field activities as mentioned below:-
I. Project formulation

The available map of the watershed was in the scale 1:50,000; however
during the project formulation or implementation phase the transfer of the
watershed ridge on a usable 1:5000 scale cadastral map didn’t take place.
Because of this, a detailed resource map and the plot wise activity plan could
not be produced as part of the project. The interventions were decided on
the basis of a transect walk conducted by the agriculture officer Mr.,
Agriculture Assistant Mr. soil conservation department officials and two or
three progressive farmers. One of them Mr.Venu Karthavu eventually
became a Mitra kisan. Apart from those farmers, people’s participation was
not there in project planning. Moreover, a detailed plot wise intervention
plan based on the factors like slope of land, soil depth and present land use
pattern neither was neither prepared nor discussed with the watershed
community before implementation.
II. Project Implementation

A multi tier structure was established by the state government for the
implementation of this project .At the state level, a committee formed with
Additional Soil conservation Director as the convener in lieu of Agriculture
Director was responsible for the project implementation. Below that there
was a district level committee with District Collector as Chairman, and the
Joint Director of Agriculture, Deputy Director of Agriculture, AGM, (NABARD),
Agriculture Officers in whose jurisdiction watershed areas come, DD
(fisheries), District Planning Officer, ADA(Soil Survey) and Lead Bank
Manager as members, which steered the project. This committee met once
in every month to review the project progress.
III. Mode of implementation

24
The agricultural officer after conducting discussions at the watershed
development committee forwarded the works to be undertaken for the next
year to the Joint Director, Agriculture. Allotment was given based on this pl
an. On receiving this agriculture officer again conducted discussion on
project implementation with watershed committee. The concerned
departments implemented the activities coming within its purview. The
application from the beneficiaries for a particular activity was collected by
the mitra kisan and submitted at the watershed committee for selection and
approval. Thereafter the officer of the concerned department would visit the
farmer and explain the work execution.
During the initial period of the project, meetings of people were conducted at
seven regions.
2.2.3.4 Effect of Watershed development activities:-
As we read above that the effects of watershed interventions implemented
at Nellaya were assessed based on the perception of the watershed
community. 10% of the households selected randomly were interviewed
using structured questionnaire. Among the interviewees, 83.5 % were men
and 16.5% were women. Out of them 49.5% were direct beneficiaries who
received at least one benefit as part of the project and the remaining 50.5 %
were non -beneficiaries who received no benefits. 26% of the respondents
reside near to the ridge portion of the micro watershed, 49% in the midland
and 25% in the valley portion. Comparatively low population density in the
valley is due to the utilization of considerable portion of this area for paddy
cultivation, low population density in the high lands can be attributed to low
water availability.
2.2.4 Kisan credit card scheme:-
2.2.4.1 Introduction:-

Kisan Credit Cards were started by the Government of India, RBI (Reserve
Bank of India), and NABARD (National Bank for Agricultural and Rural
Development) in 1998-99 to help farmers access timely and adequate credit.

The Kisan Credit Care allows farmers to have cash credit facilities without
going through the credit screening processes repeatedly. Repayment can be
rescheduled if there is a bad crop season, and extensions are offered for up
to 4 years. The card is valid for 3 years and subject to annual renewals.
Banks in India that lend for agricultural purposes usually offer the KCC.
Withdrawals are made using slips, cards, and a passbook.

2.2.4.2 Objectives of the Scheme:-

25
 • To provide insurance coverage and financial support to the farmers in
the event of failure of crops as a result of natural calamities, pests and
diseases.

• To encourage farmers to adopt progressive farming practices, high

value inputs and higher technology in agriculture.

• To help stabilise farm incomes, particularly in disaster years.

• To support and stimulate primarily production of food crops and

oilseeds.

• Farmers to be covered: All farmers (both loanee and non-loanee

irrespective of their size of holdings) including sharecroppers, tenant
farmers growing insurable crops covered.

• Sum insured: The sum insured extends upto the value of threshold
yield of the crop, with an option to cover upto 150% of average yield
of the crop on payment of extra premium.

• Premium subsidy: 50% subsidy in premium allowed to Small and

Marginal Farmers, to be shared equally by the Government of India
and State Government/Union Territory. Premium subsidy to be phased
out over a period of 5 years.

2.2.4.3 Kisan Credit Card Scheme – Salient features

• Eligible farmer will be provided a Kisan Credit Card and a Pass Book or
a Card-cum-Passbook.

• Revolving cash credit facility allowing any number of drawals and

repayments within the limit.

• Entire production credit needs for full year plus ancillary activities
related to crop production to be considered while fixing limit. In due
course, allied activities and non farm short term credit needs may also
be covered.

• Limit to be fixed on the basis of operational land holding, cropping

pattern and scales of finance.

• Seasonal sub limits may be fixed at the discretion of banks.

26
 • Limit of valid for 3 years subject to annual review.

• Conversion /reschedulement of loans also permissible in case of

damage to crops due to natural calamities.

• As incentive for good performance, credit limits could be enhanced to

take cares of increase in costs, changing in cropping pattern etc.

• Security, margin and rate of interest as per RBI norms.

• Operations may be through issuing branch / PACS or through other

designated branches at the discretion of bank.

• Withdrawals through slips /cheques accompanies by card and

passbook.

• Personal Accident Insurance of Rs. 50,000 for death and permanent

disability and Rs. 25,000/- for partial disability available to Kisan
Credit Card holder at an annual premia of Rs. 15/- per annum.

2.2.4.4 Advantages of the KCC Scheme

• Full year’s credit requirement of the borrower taken care of.

• Minimum paper work and simplification of documentation for drawal of

funds from the bank.

• Access to adequate and timely credit to farmer.

• Assured availability of credit for 3 years and avoidance of uncertainly

involved in accessing credit on a year to year basis.

• Annual review of limit and provision for enhancement subject to

satisfactory operations.

• Flexibility in use of credit and saving in interest burden.

• Flexibility of drawing cash from a branch other than the issuing branch
at the discretion of the bank.

• Availability of the life cover/ disability insurance at very low premium

in case the farmers meets with accident.

2.2.4.5 Benefits of the Scheme to the Banks

27
 • Reduction in work load for branch staff by avoidance of repeat
appraisal and processing of loan papers under Kisan Credit Card
Scheme.

• Minimum paper work and simplification of documentation for drawal of

funds from the bank.

• Improvement in recycling of funds and better recovery of loans.

• Reduction in transaction cost to the banks.

• Better Banker - Client relationships.

2.2.4.6 Coverage of Crop Loans disbursed under KCC

Under the Reshtriya Krishi Bima Yojna (RKBY) GIC has agreed that the crop
loans disbursed for eligible crops under the Crop Insurance Scheme will be
covered under the CCIS, now under Rashtriya Krishi Bima Yojna. However,
the banks are expected to maintain all back up records relating to
compliance with "RKBY" and its seasonality discipline, cut-off date for
submitting declarations and end use, etc. as in the case of normal crop
loans.

2.2.4.5 Budget 2001-02 announcement - Follow up :

• Hon'ble Union Finance Minister in his Budget Speech for the year
2001-02 set the future agenda for the Scheme as under :

“The innovation of KCC is proved to be very successful. Since the year of its
introduction in 1998-99, almost 110 lakh KC cards have been issued. I am
asking our banks to accelerate this programme and cover all eligible
agricultural farmers within the next 3 years.

I am also asking the banks to provide a personal insurance package to the

KCC holders as is often done with other credit cards to cover them against
accidental death or permanent disability, upto maximum amount of
Rs.50,000/ and Rs.25,000/- respectively. The premium burden will be
shared by the card issuing institutions.

2.2.4.6 Coverage of farmers - Future strategy

• Banks, vide our Circular letter dated 10 April 2001, requested to draw
up an action plan immediately in consultation with our Regional Office

28
 concerned, based on their past performance and experience in
implementing the scheme, to ensure the coverage of all the eligible
agricultural farmers under the KCC Scheme within the next three years
i.e. by 31 March 2004.
• Banks to ensure that targets fixed for 2001-02, 2002-03 and 2003-04
include new agricultural farmers likely to become eligible for their KC
cards after 31 March 2001 also.
• Targets fixed for issue of KC Cards be disaggregated month-wise and
branch/PACS-wise to facilitate close monitoring of progress vis-a-vis
target and also advised to RO concerned.
• In order to ensure achievement of the targets so fixed, banks
requested to follow strategies suggested by NABARD from time to
time. Towards this end, banks to launch a campaign approach to
accelerate pace of implementation of the Scheme. Following specific
steps may be taken by the banks :
• Conduct of sensitisation/training programmes for the officers of
controlling offices of banks, branch managers and field level
functionaries as also district level functions for distribution of cards.
• Holding Banker-Farmers' Meets, as part of the Kharif 2001 campaign,
in each block to identify the ground level constraints in the smooth
implementation of the Scheme and to initiate remedial measures
therefor.
• Use of VVV Clubs fora for propagation of the scheme.
• Placement of hoardings/banners etc. at prominent places, such as
branch premises, Panchayat buildings, Mandis, etc.
• Use of audio-video media, bringing out KCC literature in local language
to create better awareness about KCC Scheme among farmers.
• Issue of plastic/laminated cards to serve as Identity Cards.
• Monitoring of progress in implementation of the Scheme in Board
meetings as also through various state/ district and block level fora
with the participation of Government functionaries, bankers, farmers
etc.

2.2.4.7 Personal Accident Insurance Scheme -Salient features :

• Designated insurance company will nominate one office at district level

to function as nodal office for coordinating implementation of personal
accident insurance scheme for KCC holders in the district.

29
 • Nominated office of insurance company to issue a Master Insurance
Policy to each DCCB/RRB covering all its KCC holders.
• Premium payable Rs.15/- for a one year policy while Rs.45/- for a 3-
year policy.

• Insurance coverage available under Policy only from date of receipt of

premium at insurance company.
• Banks to ensure to incorporate name of Nominee in Kisan Credit Card-
cum-Pass Book.

• Simplified claim settlement procedure evolved under Scheme whereby

an Enquiry-cum-Verification Committee comprising Branch Manager of
implementing bank, Lead Bank Officer and representative of insurance
company to certify nature of accident causing disability/death and
recommend settlement of insurance claims.

• Scheme covers risk of KCC holders against death or permanent

disability resulting from accidents caused by external, violent and
visible means, as under:

• Death due to accident (within 12 months of the accident)

caused by outward, violent and visible means -- Rs.50,000/-
Permanent total disability -- Rs.50,000/-
Loss of two limbs or two eyes or one limb and one eye -- Rs.50,000/-
Loss of one limb or one eye -- Rs.25,000/-

2.2.4.7 Major Steps taken by NABARD:

• A Brochure on KCC Scheme highlighting the salient features,

advantages and other relevant information about the Scheme was
brought out by Head Office and ROs were asked to circulate the
brochure to State govt. departments, Commercial Banks, Cooperative
Banks, RRBs and other concerned agencies/officers so as to generate
wider awareness about the Scheme.

• Floor limit of Rs.5000/- for issue of KC Cards stands withdrawn.

• Studies on KCC Scheme have been entrusted to BIRD and NABARD

Staff College to facilitate feed back on the ground level

30
 issues/problems so that changes, where necessary, could be
considered.

• Studies on the implementation of the Scheme undertaken by NABARD

periodically.

• On the lines of instructions of RBI to Commercial Banks, Cooperative

Banks and RRBs have been advised that they may, at their discretion,
pay interest at a rate based on their perception and other relevant
factors on the minimum credit balances in the cash credit accounts
under the Kisan Credit Cards of farmers during the period from 10th to
the last day of each calendar month.

• Regional Rural Banks (RRBs) were advised to initiate innovative

publicity campaign in each area of operation in order to cater all
eligible farmers under KCC.

2.2.4.8 Progress in implementation of the Scheme

• Since launching in August 1998, around 2.38 crore Kisan Credit Cards
issued upto 31 March 2002 by Cooperative Banks, Regional Rural
Banks and Commercial Banks put together.

• Scheme implemented in all States and Union Territories (except

Chandigarh, Daman & Diu and Dadra & Nagar Haveli) with all
Cooperative Banks, RRBs and Commercial Banks participating.
• Agency-wise/State-wise progress in issue of cards by all banks during
2001-02 and since inception of Scheme.

2.2.5 Beej gramin yojna:-

2.2.5.1 Introduction:-
Seed Village Programme is implemented in the country to upgrade the
quality of farmer saved seed. The programme is implemented through State
Departments of Agriculture, State Agricultural Universities and State Seeds
Corporations. Following assistance is provided under the programme:
i. Distribution of foundation/certified seed at 50% cost for half an acre per
farmer.
ii. Training of the farmers in seeds production and seed technology. An
amount of Rs.15000 for a group of 50-150 farmers is provided.
iii. Development of local storage capacity of appropriate quality. Assistance
@ 33% subject to a maximum of Rs.3000 for 20 quintals capacity and

31
Rs.2000 for 10 quintals capacity to SC/ST farmers and @25% subject to a
maximum of Rs.2000 for 20 quintals capacity and Rs.1500 for 10 quintals
capacity for other farmers is provided.

2.2.5.2 Beej gramin yojna-salient features:-

• In initial year of Road map (08-09) one village in each block covered
under Seed Village Scheme
• In 2009-10 two villages in each block being covered
• From this year 4 villages to be covered in each block
• Desirous farmers of selected villages are given foundation seed at half
the cost
• Training imparted at three stages
• Seed storage bins of 5 qtls capacity given on subsidy.
• Target is to cover 10% of villages in the last year of Road Map(2012-
13)

2.2.5.3 Seed Production on Govt. Farms

 Seed production started in 2006-07.

 Present status.

Sr. Name of Coverage Production

No. Crop (ha.) (qtls.)
1. Paddy 1476 35000
2. Arhar 125 309
3. Wheat 1120 15000
4. Gram 50 300
5. Lentil 100 500
6. Pea 12 50
7. R/M 50 100
8. Summer 100 214
Moong
 Cost of cultivation met by state fund.
 Strengthening of infrastructure through RKVY.
 Irrigation facility developed on all farms.
 Land development of farms using laser land leveler.

32
  Mechanized harvesting done to avoid admixture of seed.
 Farms are to be barbed fenced to check the damage of pulses from
blue bull.
 Foundation seed production done on these farms.
 150 storage go downs are being constructed
 State controls the entire production and distribution of seed.
 Seed made available to farmers through Bihar Rajya Beej Nigam under
various schemes.

2.2.5.4Krishi Mela under this scheme proves to be a grand success:-

The four-day Krishi Mela held at the University of Agricultural Sciences
(UAS), Dharwad, from October 2, proved to be a grand success. According
to UAS officials, an estimated 7.4lakh people, including farmers, extension
workers and students, attended the event. Record sale The stall set up by
the UAS and the Karnataka State Seeds Corporation achieved a record sale
of 1,000 quintals of seeds worth Rs. 50 lakh. Farmers bought seeds for the
rabi season, including rapeseed, wheat, jowar and Bengal gram. The UAS
book stalls had witnessed hectic sales of books on the latest farming
technology, organic farming, integrated farming and related topics, the
officials said.

Another attraction at the event was the demonstration of successful

models of farming by the selected progressive farmers and new
methods of cultivation for different crops developed by the UAS.
Farmers from the neighboring States of Maharashtra and Andhra
Pradesh too queued up for this event. There was an interaction
between farmers and experts on the concluding day.

2.2.6 Soil and water conservation scheme:-

2.2.6.1 Introduction:-

In a predominantly agricultural system, the objective of improving the

productivity, profitability and prosperity of the farmers and achieving
agricultural development on an ecologically sustainable basis can be attained
only when conservation, development and management of the land and
water resources are assured. As watersheds support the entire dry land
agriculture / horticulture and also remain the catchments for tanks and
reservoirs, their health is essential for development. The strength of the
watershed development programmes will largely determine the growth in
agriculture.

33
Land and water conservation is the basic responsibility of Agricultural
Engineering Department. The Mission mode approach of the Government is
to accomplish the goals of saving every drop of rain, providing adequate
water for agriculture and conservation of life support system – land and
water resources through watershed management and irrigation water
management strategies.

While Soil and water conservation programme is implemented by

Agricultural Engineering Department, Soil Survey and soil Testing schemes
are implemented by Agriculture Department.

2.2.6.2 Soil Survey and Land Use Organization:-

The objective of the Soil Survey and Land Use Organisation is the conduct of
soil survey and preparation of soil resources inventory including the nature
of soil occurring in the area, their morphological, physical and chemical
characteristics through field studies and laboratory analysis, classification
according to internationally recognised system of soil classification and
mapping their extent on standard topographic base and finally interpreting it
for variety of uses. The above survey is being taken up through the four
soil survey units functioning at Coimbatore, Thanjavur, Vellore and
Thirunelveli. Now this scheme is being implemented through Non-plan
funding. An area of 1.14 lakh ha. has been surveyed as against the target
of 1.10 lakh ha. for the year 2002-03. An area of 1.10 lakh ha. will be
covered during 2003-04.

2.2.6.3 Soil Testing Laboratories and Mobile Soil Testing

Laboratories:-

Soil Testing Laboratories are functioning in the State to analyse the soil
samples collected from the farmers' fields in order to advise the farmers on
specific fertilser recommendations on the basis of native soil fertility. There
are 19 Soil Testing Laboratories functioning in different districts to analyse
8.42 lakhs samples per annum. Besides these laboratories, 16 Mobile Soil
Testing Laboratories are also doing this service at farmers' doorstep, i.e. in
villages on a notified date enabling the farmers to get on the spot analysis
and advice on their soils. These Soil Testing Laboratories also help farmers
in suggesting suitable reclamatory measures like application of soil
amendments for the problem soils, preparing village level fertility indices
and assessing Soil and Water Conservation quality of irrigation water. The
Central Control Laboratory functioning at Kudumianmalai has to supervise
and guide the functioning of Soil Testing Laboratories. This laboratory will
also analyse and check samples drawn from these laboratories so as to
correlate the results and ensure the correctness of the procedures adopted.

34
This serves to strengthen the quality control of fertilizers and also serves as
a watchdog on quality parameters.

Now this scheme is being implemented through Non-plan funding. A total

number of 6.83 lakh soil samples have been analysed during 2002-03. It is
programmed to analyse 8.1 lakh soil samples during 2003-04.

2.2.6.4 Preparation and Distribution of Bio Fertilizer Packets:-

Though fertilizers are readymade artificial manures supplying essential

nutrients for boosting crop production, their continuous and indiscriminate
use makes the soils sterile and results in degradation of soil potential.
Hence use of different types of organic manures bio-fertilizers, etc. plays an
important role as a part of Integrated Nutrient Management Package. In
view of non-availability of adequate quantity of organic manures, bio-
fertilizers using microorganisms to fix atmospheric nitrogen have come in
handy as a result of technology development in modern agriculture. Six bio
fertilizer production centres functioning at Cuddalore, Ramanathapuram,
Salem, Kudumianmalai, Sakkottai and Trichy are producing 1400 tonnes of
Bio- fertilizers. The above centers are also provided with automatic mixing
and packing units to ensure the quality of the bio fertilizer with a longer shelf
life. An amount of Rs. 250.53 lakhs is proposed for 2003-04 for the above
scheme.

2.2.6.5 Saline and Alkaline Land Reclamation:-

The Saline And Alkaline Land Reclamation scheme is functioning to reclaim

problem soil in Nagapattinam, Thiruvarur, Kancheepuram, Thiruvallur,
Vellore, Thiruvannamalai, Salem and Namakkal district in an area of 4000
acres. An amount of Rs.0.12 lakh is proposed for this scheme. Under this
scheme Gypsum and Zinc Sulphate are being supplied to the beneficiaries at
50% subsidy and an additional sum of Rs. 1000/- per acre is extended as
subsidy for constructing drainage channel. During the year 2002-03, an
area of 3952 acres was reclaimed. It is programmed to recover 4000 acres
during 2003-04.

2.2.6.7 Agricultural Engineering Department:-

Land and Water Conservation are the basic and responsibility of Agricultural
Engineering Department (AED). The goals for Agricultural Engineering
Department have been outlined in the Chief Minister's 15 points programme:
Saving every drop of rain, more crop per drop, adequate water for
agriculture, conservation of life support systems- Land and Water Resources
and Livelihood security through employment generation. The Mission for

35
“Land and Water Conservation” will be actualized through Watershed
Management and Irrigation Water Management strategies listed below with
appropriate action plans.

 Watershed Management

· Prevention of soil erosion and Conservation of soil moisture

· Promoting Water harvesting techniques to impound runoff water and On

Farm Water Harvesting.

· Arresting further expansion of wastelands by protecting lands from erosion

hazards and promoting alternate / appropriate land use according to their
capability.

· Renovation of Village Ponds, Ooranies, Temple tanks and other traditional

Water storage.

· Retarding pollution by controlling sediment carried pollutants

 Irrigation Water Management

· Optimizing Water use and ensuring equity in Water distribution and

maximizing production

· Creation of farmer’s organization for sustainable Water Management in

Command Areas

· Creation of well irrigation facilities and stabilization of existing facilities.

· Conservation of Water under Well Irrigated conditions by Drip and Sprinkler

Irrigation systems for promotion of Horticulture crops, Sugarcane and
Coconut and bringing more areas under irrigation with increased yields. The
above strategies will be converted into action plans to be carried out under
State Plan and Centrally Sponsored schemes, besides convergence of
programmes like SGSY, SGRY, PMGY and new Anna Marumalarchi Thittam in
the respective project areas.

2.2.6.8 Participatory Watershed Development:-

An area of 32.50 lakh hectares is under rain fed agriculture. This area is the
production base of crops like millets, pulses, oilseeds and cotton. Soil and
Water Conservation works were initiated as part of famine relief operations
in 1949 and were continued year after year as a protective measure. During

36
Tenth Plan period, it is proposed to restructure the programme. The
restructured programme will attempt to prevent soil erosion, increase soil
moisture availability and create rainwater-harvesting facilities in the
watersheds predominantly under rainfed agriculture, with total participation
of farmers. The new approach is developed based on the experience gained
from the DANIDA assisted Comprehensive Watershed Development Project.

 Participatory Approach-

The programme will be organized through the participatory approach,

actively involving all sections of the community at every stage (planning,
implementation, maintenance, monitoring and benefit sharing). This will
facilitate sustainability by creating a feeling of belonging and ownership for
resources created with project assistance. Implicit in this approach will be
sharing of costs and benefits by beneficiaries. Special attention will be given
to ensure the participation of women and other vulnerable groups in project
activities. The role of AED will be to provide technical guidance and to
facilitate implementation by the community.

Micro Watershed Development Work Plan- The new watershed plan will
incorporate measures for soil moisture conservation, soil erosion control,
runoff harvesting and on farm rain water harvesting and Individual based
farm developments linked with self or institutional funding. Each Micro
Watershed plan will take into account the potentialities of the watershed,
which is linked Soil and Water Conservation to the land capability, soil type,
soil depth, availability of ground water and the preference shown by the
farmers. The micro watershed plan will reflect the felt needs of the
watershed community, and will have technological inputs from line
departments and the regional research stations of Tamil Nadu Agricultural
University.

 Special attention for problem soils- The new approach will pay
special attention to saline and alkali soils. Black soils will receive
specific attention through focused research and development. Based
on the research trials, Micro Watershed work plans for black soil areas
will be developed to alleviate the problems of drainage and moisture
stress. Special methods of water harvesting like recharge wells,
recharge shafts will be employed to facilitate ground water recharge.

2.2.6.9 Soil Conservation Programme:-

a. Soil and Water Conservation programme

37
For implementation of soil conservation schemes in plains an amount of
Rs.1116.29 lakhs is proposed and it is aimed to cover an area of 50,000 ha.

b. DANIDA assisted Comprehensive Watershed Development project

The Comprehensive Watershed Development project is implemented in the

districts of Tirunelveli and Thoothukudi covering an area of 42,500 ha. in
120 villages at a total cost of Rs.4172.44 lakhs with assistance from
DANIDA.

The objective of Comprehensive Watershed Development project is

· To demonstrate and popularize sustainable land use systems suitable for

degraded lands.

· Enable the land users to practice rainfed agriculture, horticulture and

forestry including conservation and judicious use of soil and water resources
on a sustainable basis

· Create short and long term employment opportunities thereby increasing

the household income in the priority areas. The project was commenced on
5.8.94 and completed by March 2003. An area of 34,901 hectares has been
covered at a total cost of Rs. 3682.85 lakhs.

2.2.6.10 National Watershed Development Programme for Rainfed

areas:-

The National Watershed Development Project for Rainfed Areas (NWDPRA) is

a centrally Sponsored Scheme being implemented in Tamil Nadu since
1990-91, with the main objective of sustaining the production of biomass
and restoration of ecological balance in the Watershed areas. A sum of Rs.
77.92 crores has been utilized for treating a total area of 2.26 lakh ha.
Watershed Areas Rainfed Agricultural System Approach (WARASA)
‘JANSABHAGITA’ the Restructured NWDPRA for the Tenth Five Year Plan has
been taken up as a five-year project starting from 2002-03 to 2006-07. In
the new guidelines, planning, implementation, monitoring and maintenance
of 9.4 Soil and Water Conservation Watersheds by the village communities
themselves have been made mandatory. This scheme is one of the major
components of macro management mode in which the GOI’s share is 90%
and balance is met by the GOTN. During the Tenth Plan, 763 numbers of
micro watersheds (500 ha) have been proposed for treatment to cover 3.82
lakh ha. In 23 identified districts. The per hectare cost norm for watershed

38
development is Rs. 4500/ for areas having less than 8% slope and Rs. 6000/
for areas having more than 8% slope. An area of 34,996 ha. Was treated
during 2002-03 as against the target of 42,774 ha. The target set for 2003-
04 is 38,623 ha.

a) Soil and Water Conservation in Vaigai River Valley Catchments The

problem of sedimentation in reservoirs has become alarming, since the silt
deposited in the reservoirs or tanks decreases the capacity of the reservoirs
and reduces the utility and life. Sedimentation of reservoirs is a serious
problem posing threat to the life of the reservoir, storage capacity of the
reservoir for irrigation of the command area and generation of power. The
studies on the sedimentation problems carried out in 33 reservoirs in Tamil
Nadu reveal that there is a loss in capacity of more than 50% in two
reservoirs and more than 30% capacity loss in 8 reservoirs. In Krishnagiri
reservoir, more than 33% of storage is silted up. Out of the 40 priority micro
watersheds of Vaigai catchments, Government of India has approved 26
micro watersheds for implementation of soil and water conservation works.
Of this, 23 micro watersheds have been saturated. Government of India’s
approval for 11 Micro Watersheds will be obtained during 2002-2003. The
works bear a subsidy of 50% and the rest is treated as loan. The loan
amount is recovered in ten equal annual installments with interest with a
moratorium of two years. During the Tenth Plan period, Government of India
will be persuaded to include South Pennaiyar catchment for treatment under
River Valley Project. An area of 3057 ha. has been covered at a cost of
494.66 lakhs and the programme in the remaining watershed is to be
continued during the year 2003-04 at a cost of Rs. 600 lakhs.

b).Soil Conservation Works in the Catchment area of Kundah and Lower

Bhavani River Valley Project With a view to prevent premature siltation of
reservoirs, various soil conservation measures are taken up in Kundah and
lower Bhavani River Valley Project. Soil conservation works on watershed
basis are taken up in the priority watershed identified by the All India Soil
and Land Use Survey Organisation. During 1980, the All India Soil and Land
use Survey organisation had prioritized the watersheds. Out of 176
watersheds in Kundha and Lower Bhavani Catchments, 58 watersheds were
identified by AISLUS as very high and high priority watersheds requiring soil
conservation treatments. Soil conservation measures were proposed based
on rainfall, nature of erosion, soil texture, slope and topography of the area.
The works bear 50% subsidy and the rest treated as loan, which will be
recovered in 10 equal annual instalments with interest with a moratorium of
two years. An amount of Rs.68.12 lakhs is proposed for this scheme for the
year 2003-04.

2.2.6.11 Soil Conservation in Tribal Areas:-

39
To improve the economic status of the tribal farmers and to bring them
above poverty line, integrated development of the tribal area is taken up
with multi sector approach in Kolli hills, Yercaud hills, Kalrayan hills,
Aranuthumalai, Pachamalai, Jawadhu hills, and Sitheri hills. Soil and water
conservation works are taken up in the lands owned by tribals at
Government cost. These programmes provide livelihood security to tribal
people by employment generation and crop production. During the year
2001-02, an amount of Rs.92.59 lakhs was spent and the anticipated
expenditure during 2002-03 is Rs.92.90 lakhs. An amount of Rs.92.90 lakhs
is proposed for the year 2003-04 to cover an area of 621 ha.

2.2.7 Joint lending group scheme:-

2.7.1 Introduction:-

Innovations such as the SHG-Bank linkage programme have proved to be

successful in providing financial services from the formal banking sector to
asset-less or very poor. This is also in line with RBI's policy of "financial
inclusion". In order to develop effective credit products for mid segment
clients having access to productive assets, NABARD had piloted the project
during 2004-05 in 8 states of the country through 13 RRBs through the
mechanism of joint liability approach. These select banks during 2004-05
have promoted 285 JLGs and extended bank finance of Rs 4.48 crores. In
the second year of the project i.e. 2005-06, banks have disbursed Rs 6.79
crores to 488 JLGs.

Besides the above pilot project, another pilot programme was launched in
Andhra Pradesh during 2004-05 through group based lending programme
aimed exclusively at small and marginal farmers. The Government of Andhra
Pradesh through its Agriculture Department primarily designed this initiative
by promoting Rythu Mithra Groups (RMGs) on the SHG model. During 2005-
06, banks have extended finance of Rs.131.78 crore to 12,468 RMGs. RMGs
are also expected to serve as a conduit for technology transfer, facilitate
access to market information and market, assist in carrying out activities like
soil testing, training, health camps, assess input requirements, etc., to its
members.

NABARD has played a primary role in preparing the guidelines for credit
linking these groups, drafting and sharing the documents to be used by
financing institutions. Further, it has undertaken sample studies to identify
gaps in the functioning of the RMGs and also designed, funded and also
conducted training and capacity building initiatives for different stakeholders
in pilot project districts.

40
The results of the above programmes have demonstrated that the JLG
approach can be successfully adopted by banks to reach clients like tenant
farmers, share croppers, oral lessees, farmers with small land holdings
without proper land records etc. The formal banking system has rarely been
able to provide credit to tenant farmers on account of their inability to offer
collaterals. However, the mechanism of JLG would enable banks to extend
credit on the basis of mutual guarantee provided by the members of JLG. It
would also reduce transaction costs of both banks and borrowers and help in
loan recovery.

Based on the experience gained in implementation of the pilot project, a

Scheme for financing JLGs of tenant farmers and oral lessees is evolved for
implementation by all the commercial banks including RRBs. The salient
features of the Scheme are as under:

2.2.7.2 Objectives:-The scheme aims at the following objectives.

• To augment flow of credit to tenant farmers cultivating land either as

oral lessees or sharecroppers and small farmers who do not have
proper title of their land holding through formation and financing of
JLGs.
• To extend collateral free loans to target clients through JLG
mechanism.
• To build mutual trust and confidence between banks and tenant
farmers.

2.2.7.3 General features of JLG:-

A Joint Liability Group (JLG) is an informal group comprising preferably of

individuals coming together for the purposes of availing bank loan either
singly or through the group mechanism against mutual guarantee. The JLG
members would offer a joint undertaking to the bank that enables them to
avail loans. The JLG members are expected to engage in similar type of
economic activities like crop production. The management of the JLG is to be
kept simple with little or no financial administration within the group.

Tenant -Any person who holds land under another person's name and pays
rent to such other person on account of the use of land is called a tenant i.e.
Tenant is a person who has taken the lease and is liable to pay rent for the
piece of land. Oral lessees - The term refers to tenancy without legal
sanction and permission or without any written agreement. Sharecroppers -
Tenants who pay rent to landlords by way of sharing crops grown (in lieu of
rent by cash) may be called sharecroppers

41
2.2.7.4 Criteria for selection of JLG members:-

JLGs can be formed primarily consisting of tenant farmers and small farmers
cultivating land without possessing proper title of their land.

• Members should be of similar socio economic status and background

carrying out farming activities and who agree to function as a joint
liability group.
• The groups must be organised by the likeminded farmers and not
imposed by the bank or others.
• The members should be residing in the same village/ area and should
know and trust each other well enough to take up joint liability for
group/ individual loans.
• The members should be engaged in agricultural activity for a
continuous period of not less than 1 year within the area of operations
of the bank branch.
• The group members should not be a defaulter to any other formal
financial institution.
• JLG should not be formed with members of the same family and more
than one person from the same family should not be included in the
JLG.
• There is a need for a very active member of the group to ensure
leadership role and ensure the activities of the JLG. The selection of a
good /able/active leader for the JLG is an essential need which will
ultimately benefit all the JLG members. However, care should be taken
to ensure that benami loans are not cornered by the group leader.

2.2.7.5 Size of the JLG:-

The group should be formed preferably with 4 to 10 members to enable the

group members to offer mutual guarantee. While informal group of upto 20
members could also be considered, such large groups are found to be not
effective in fulfilling mutual guarantee obligations in the case of farmers.
Therefore, smaller groups of farmers (4-10 members) are recommended for
effective functioning of JLG.

2.2.7.6 Formation of JLGs:-

Banks may initially form JLGs by using their own staff wherever feasible.
Banks may also engage business facilitators like NGOs and other individual

42
rural volunteers to assist banks in promoting the concept and formation of
groups.

On formation of JLGs, the bank officials need to discuss with the JLG
members the bank’s regulations, lending procedures, services etc. The
principles of self-help and group strength need to be emphasized. Group
cohesion has to be ensured. Adequate emphasis should be placed on the
roles, expectations and functions of the group/members & the benefits of
group dynamics.

State Government Departments like Agriculture Department also could form

JLGs of tenant farmers and small farmers not having clear land title. The
JLGs of such eligible farmers can also serve as a conduit for technology
transfer, facilitating common access to market information; for training and
technology dissemination in activities like soil testing, training, health camps
and assessing input requirements.

2.2.7.7 Savings by JLG:-

The JLG is intended primarily to be a credit group. Therefore, savings by the

JLG members is voluntary. All the JLG members may be encouraged to open
an individual "no frills” account. However, if the JLG chooses to undertake
savings as well as credit operations through the group mechanism, such
groups should open a savings account in the name of JLG with atleast two
members being authorised to operate the account on behalf of the group.

2.2.7.8 JLG Models:-

Banks can finance JLG by adopting any of the two models.

Model A – Financing Individuals in the Group: The JLG would normally

consist of 4 to 10 individuals. The group would be eligible for accessing
separate individual loans from the financing bank. All members would jointly
execute one inter-se document (making each one jointly and severally liable
for repayment of all loans taken by all individuals in the group). The
financing bank could assess the credit requirement, depending on the crops
to be cultivated, available cultivable land and credit absorption capacity of
the individual. However, there has to be mutual agreement and consensus
among all members about the amount of individual debt liability that will be
created.

Model B – Financing the Group: The JLG would consist preferably of 4 to 10

individuals and function as one borrowing unit. The group would be eligible
for accessing one loan, which could be combined credit requirement of all its

43
members. The credit assessment of the group could be based on the
available cultivable area by each member of the JLG. All members would
jointly execute the document and own the debt liability jointly and severally.
JLG is mainly a credit product. But if the members want to save through the
group, banks can open saving account in the name of the JLG to be operated
by two members of the group as decided through a resolution by the JLG.

2.2.7.9 Critical factors in JLG approach:-

The success of JLG concept depends on several factors. However, following

factors are critical;

• The concept depends heavily on mutual trust within the groups and on
peer pressure for the repayment of loans.
• The quality of group leadership is critically important for the
sustainability of the group.
• The JLG exists only for the single purpose of expediting certain
categories of loans. Generally they are not multifunctional groups.

2.2.7.10 Credit Assessment:-

Model A; The JLG would prepare a credit plan for its individual members and
an aggregate of that is submitted to the banks. Banks may evolve simple
loan application for this purpose. The individual members of JLG would be
eligible for bank loan after the bank verifies the individual members’
credentials.

Model B; JLGs that undertake savings apart from credit are required to
maintain books of accounts. They may also be graded by banks on the basis
of performance parameters. However, the quantum of credit need not be
linked to groups' savings as in the case of SHGs. The credit requirements for
the group may be worked out based on combined credit plan needs of
individual members.

2.2.7.11 Purposes of credit:-

The finance to JLG is expected to be a flexible credit product addressing the

credit requirements of its members including crop production, consumption,
marketing and other productive purposes.

44
2.2.7.12 Type of loan:-

Banks may consider cash credit, short-term loan or term loan depending
upon the purpose of loan.

2.2.7.13 Loan limit:-

Considering that the loan to be granted is against the mutual guarantee

offered by the group, maximum amount of loan may be restricted to Rs.
50,000 per individual both under Models A & B.

2.2.7.14 Rate of interest:-

Banks may decide the rate of interest to be charged to JLGs. However,

banks may consider providing incentives for prompt repayment to JLGs, as
applicable.

2.2.7.15 Margin and Security Norms:-

No collaterals may be insisted upon by the banks against their loans to JLGs.
It may however, be ensured that the mutual guarantees offered by the JLG
members are kept on record. Margin as per the usual norms may be applied.

2.2.7.16 Documents:-

Model A: The documents to be obtained include Introduction form,

application cum appraisal form, mutual guarantee & DPN. Set of specimen
forms of each of these is enclosed. Banks may make use of the forms with
suitable modifications if necessary.

Model B: Documents as applicable to SHGs may be adopted.

2.2.7.17 Separate window for financing JLGs:-

In pursuance of Union Budget 2006-07 announcements, banks may open a

separate window for JLGs of tenant farmers and ensure that a certain
proportion of the total credit is extended to them.

2.2.7.18 Credit to JLGs to form normal business activity under

Priority Sector:-

As the programme is intended to benefit farmers cultivating lands who may

not have adequate collateral to offer to avail of bank loan in their individual
capacity, lending to JLGs may be treated as direct agricultural advances

45
under priority sector advances segment. Banks may include lending to JLGs
in their corporate plan and also in the training schedule of officers/staff.

2.2.7.19 Personal accident insurance:-

Banks may consider covering individual members of JLG under personal

accident insurance.

2.2.7.20 Crop insurance scheme:-

National Agricultural Insurance Scheme (NAIS) i.e. Rashtriya Krishi Bima

Yojana- of Agriculture Insurance Company of India extends crop insurance
cover to all farmers including tenant farmers, sharecroppers growing notified
crops in the country. Hence banks may work out the premium payable by
the JLG members availing of crop loan and pay the same to the insurance
company as per the normal terms & conditions.

2.2.7.21 Monitoring and Review:-

Banks may closely monitor the programme regularly at various levels and at
regular intervals. A progress report may be sent to RBI and NABARD in the
prescribed format on a half yearly basis as on 30 September and 31 March
each year so as to reach within 20 days of the half year to which the report
relates.

2.2.8 Integrated nutrient management schemes:-

2.2.8.1 Introduction:-

The main objective of Integrated Nutrient Management (INM) Division is to

ensure adequate availability of quality fertilizers to farmers through
periodical demand assessment and timely supply, promoting integrated
nutrient management, which is soil test-based judicious and balanced use of
chemical fertilizers in conjunction with organic manures and bio-fertilizers,
promotion of organic farming and ensuring quality control of fertilizers
through implementation of Fertilizer (Control) Order, 1985.

2.2.8.2 Fertilizer Consumption:-

India is the third largest producer and consumer of fertilizers in the world
after China and the USA. Against 21.65 million tonne of fertilizer nutrients
(NPK) consumed during 2006-07, the nutrient consumption is 22.57 million
tonne during 2007-08. The consumption of major fertilizers namely, Urea,
DAP, MOP, SSP and Complexes were 25.96, 7.50, 2.88, 2.29 and 6.57

46
million tonne during 2007-08. India is by and large self sufficient in respect
of Urea and about 90 per cent in case of DAP. The all India average fertilizer
consumption is 116.5 kg/ha of NPK nutrients, though there is wide variation
from state to state varying from 212.7 kg/ha in Punjab, 208.2 kg/ha in
Andhra Pradesh, 190.9 kg/ha in Haryana to less than 5 kg/ha in States like
Arunachal Pradesh and Nagaland etc. Considering the skewed pattern of
fertilizer use, Government of India is promoting balanced and integrated use
of fertilizer nutrient through various initiatives. As a result, NPK consumption
ration has now improved to 5.5:2.1:1 during 2007-08 from 7.0:2.7:1 during
2000-01.

2.2.8.3 Price of Fertilizers:-

Presently urea is the only fertilizer which is under Statutory Price Control. To
ensure adequate availability of fertilizers to farmers at reasonable rates,
subsidy is provided by Government of India. Urea, the most consumed
fertilizers, is subsidized under the New Urea Pricing Scheme, whereas P&K
fertilizers, which are decontrolled, are covered under the Concession
Scheme. The policy for uniform freight subsidy on all fertilizers under the
fertilizer subsidy regime is also implemented. There is no change in the
prices of major fertilizers since 28.02.2002. However, the prices of
complexes grade of fertilizers have been reduced on nutrients based pricing
of subsidized fertilizer w.e.f. 18.06.2008.

2.2.8.4 Buffer Stocking of P&K Fertilizers:-

A buffer stock of limited quantity of Di-Ammonium Phosphate (DAP) and

Muriate of Potash (MOP) is being maintained at strategic locations to met
emergent requirements. These stocks are in the nature of rolling stocks and
are replenished when depleted. Besides meeting emergent needs, the Buffer
Stock also helps to meet requirements of States which have low demand and
hence sometimes find it difficult to induce suppliers to move fertilizers in
small quantities.

2.2.8.5 Fertilizer Quality Control:-

Fertilizer is the most critical and costly input for sustaining agricultural
production and ensuring food security of the country. The Government
ensures the quality of fertilizers through Fertilizer Control Order (FCO),
issued under Essential Commodities Act, 1955 to regulate, the trade, price,
quality and distribution of fertilizers in the country. The State Governments
are the enforcement agencies for implementation of the provisions of FCO,

47
1985. The Order strictly prohibits the manufacture, import and sale of any
fertilizer, which does not meet prescribe standards

The percentage of non standard samples on all India basis is hovering

around 6% samples during last 5 years. However, there is a large variation
from state to state.

2.2.8.6 Fertilizer Control Order, 1985:-

Analytical Capacity and the Number of Samples Analysed and found Non
Standard during the last 5 Years
Annual
No. of No. of samples Percent-age of non
Year Analytical
Labs analysed standard samples
capacity
2004-
67 120315 124,730 6.0
05
2005-
67 120415 122,488 6.0
06
2006-
68 125480 129,250 6.0
07
2007-
68 124778 129,331 6.2
08
2008-
71 124730 131,565 3.9
09

In pursuance of Clause 20 A of FCO, 1985, fertilizer companies namely,

Chambal fertilizer Ltd., Sri Ram Fertilizer Ltd., Tata Chemicals, National
Fertilizers Ltd and KRIBHCO have been permitted to manufacture neem
coated urea as provisional fertilizer for commercial trial upto 3rd August,
2009. In order to encourage use of micronutrients, NRK complex fertilizer
15:15:15:9(S) have been included in FCO, 1985. Two new NPK 100% water
soluble fertilizers 28:28:0 and 24:24:0 have also been notified under clause
20A provisionally. The specification of triple super phosphate has been
revised under clause 20 of FCO, 1985 to enable easy availability of
phosphatic fertilizer. 14 new grades of soil specific and crop specific
customised fertilizers have been notified so far.

2.2.8.7 Promotion of Integrated Nutrient Management (INM):-

The Government is promoting soil test-based balanced and judicious use of

chemical fertilizers, biofertilizers and locally available organic manures like
farmyard manure, compost, nadeep compost, vermi compost and green
manure to maintain soil health and its productivity. A Centrally Sponsored

48
Scheme, "National Project on Management of Soil Health and Fertility"
(NPMSF) has been approved during 2008-09 with an outlay of Rs.429.85
crores for the remaining period of XI Plan. The two existing schemes
namely: i) centrally sponsored scheme of Balanced and Integrated Use of
Fertilizers and ii) Central Sector Scheme "Strengthening of Central Fertilizer
and Quality Control & Traiing Institutes and its Regional Labs. have been
subsumed in the new scheme w.e.f. 1.4.2009. The components of the new
scheme include setting up of 500 new soil testing laboratories, strengthening
of the existing 315 soil testing laboratories, setting up of 250 mobile soil
testing laboratories, promotion of organic manures, soil amendments and
distribution of micro nutrients, setting up of 20 new fertilizers quality control
laboratories and strengthening of 63 existing fertilizer quality control
laboratories during 11th Plan.

2.2.9 ICDP Rule:-

2.2.9.1 Introduction:-

Integrated Cooperative Development Project (ICDP) Scheme was introduced

by NCDC in the year 1985-86 with the following objectives:

• Development of Primary Agricultural Credit Societies as

multipurpose self-reliant entities;
• Development of allied sector cooperatives
• Development of viable functional linkages among cooperatives.

2.2.9.2 Salient features:-

• A Macro Plan is prepared for the whole of selected district keeping in

view the local resources and needs.
• The Project is implemented by a district level cooperative institution,
generally the District Central Cooperative Bank, which is termed as the
Project Implementing Agency (PIA).
• To assist the DCCB in project implementation, a project
implementation team (PIT) is constituted at the district level to
prepare Business Development Plan for the societies, assess the
society-wise infrastructural and other requirements and provide
assistance accordingly.
• The systems and procedures are streamlined and viable functional
linkages are established to make the operations cost-effective.

49
 • Gaps in managerial skills are identified and necessary training is
provided to personnel in cooperatives. PIT personnel provide training
and guidance with the help of experts in the related field where
necessary.

2.2.9.3 Pattern of funding:-

• The National Cooperative Development Corporation sanctioned to the

State Govt. in the form of Loan component and Subsidy component
which comprises 28% to 30% as Subsidy of the total block cost and
the rest 72% as Loan.
• The State Govt. in return provides 50% Share Capital contribution to
the beneficiaries Cooperative Societies and the remaining 50% as
Loan. No Subsidy Component has been provided to the Cooperative
Societies.
• The Subsidy Component has been provided by the National
Cooperative Development Corporation for the Project Implementation
Team of the Project which includes the following items:-
i. Manpower Development and Training for beneficiaries.
ii. Incentives to Apex/ Primary Cooperative Societies.
iii. Management Cost of the Project Implementation Team

• The State Govt. will accord sanction and release of Funds as per
Year-Wise Pattern of funding by the National Cooperative
Development Corporation and the same will be reimbursed by the
National Cooperative Development Corporation.

2.2.10 National horticulture mission:-

2.2.10.1 Introduction:-

National Horticulture Mission (NHM) will be implemented in all the

States and Union Territories of India except the North Eastern States,
Himachal Pradesh, Jammu & Kashmir and Uttaranchal (for which a
separate Technology Mission for integrated development of
horticulture exists) to promote holistic growth of the horticulture
sector covering fruits, vegetables, root & tuber crops, mushroom, spices,

50
flowers, aromatic plants, cashew and cocoa. Programmes for the
development of coconut will be implemented by the Coconut Development
Board (CDB), independent of the Mission. This will be a Centrally sponsored
scheme in which Government of India shall provide 100% assistance to the
State Missions during Tenth Plan. During the XI Plan, the Government of
India assistance will be 85% with 15% contribution by the State
Governments.

2.2.10.2 Mission objectives:-

The main objectives of the Mission are:

• To provide holistic growth of the horticulture sector through an area

based regionally differentiated strategies which include
research, technology promotion, extension, post harvest
management, processing and marketing, in consonance
with comparative advantage of each State/region and its diverse
agro-climatic feature;
• To enhance horticulture production, improve nutritional security and
income support to farm households;
• To establish convergence and synergy among multiple on-
going and planned programmes for horticulture development;
• To promote, develop and disseminate technologies, through a
seamless blend of traditional wisdom and modern scientific
knowledge;
• To create opportunities for employment generation for skilled and
unskilled persons, especially unemployed youth;

2.2.10.3 Strategy:-

• To achieve the above objectives, the mission would adopt the following
strategies:

51
 • Ensure an end-to-end holistic approach covering production,
post harvest management, processing and marketing to
assure appropriate returns to growers/producers;
• Promote R&D technologies for production, post-harvest management
and processing;
• Enhance acreage, coverage, and productivity through:

(a) Diversification, from traditional crops to plantations, orchards,

vineyards, flower and vegetable gardens;

(b) Extension of appropriate technology to the farmers for

high-tech horticulture cultivation and precision farming.

• Assist setting up post harvest facilities such as pack house, ripening

chamber, cold storages, Controlled Atmosphere (CA) storages
etc, processing units for value addition and marketing
infrastructure;

2.2.10.4 Procedure for approval and implementation:-

• States will be required to prepare a State Horticulture Mission

Document (SHMD) projecting a plan of action for the X Plan and XI
Plan periods. The SHMD will form the basis for preparing Annual
Action Plans (AAP). The AAP will be area based, on the basis of
existing potential for horticulture development, available
infrastructure for monitoring and implementation, available unspent
balance out of previous release and capacity to absorb the funds in
commissioning the project. The Ministry of Agriculture would
communicate the tentative outlay for the year by April/May if
not earlier to each State which in turn will indicate sector-
wise/district-wise allocation. The agencies at the District level will
prepare the Annual Action Plan (AAP) keeping in view their priority
and potential and submit the plan to the State Horticulture Mission
within the allocated sumThe SHM will upload the AAP, as
communicated to the National level EC indicating approval by SLEC,
on the web site exclusively created for the purpose. The same will
be replaced after its approval by National level EC
•
• 2.2.10.5 Position of ongoing schemes:-

52
Presently, horticulture development programmes are being implemented
through a number of Schemes viz. National Horticulture Board
(NHB) programmes, Coconut development Programmes, Technology
Mission for Integrated Development of Horticulture North Eastern States
(TMNE), Human Resource Development (HRD) in Horticulture, integrated
Development of Horticulture in Tribal and Hilly Areas and
Horticulture programmes under the Macro Management Scheme. Of
these, the schemes on HRD and Tribal Areas and Programmes under Macro
Management will be subsumed under National Horticulture Mission (NHM).
The Macro Management scheme provides flexibility to the States to allow
new interventions within 10 per cent of the total allocation for the
State; which will be maintained in the NHM. The NHB programmes are
entrepreneur-driven and the Board would continue to implement its
programmes. The NHB will also provide a launching pad for the Mission,
by way of pooling experts and housing the Technical Support Group.
Technology Mission in North Eastern States (TMNE) programmes,
which are focused for the development of the North Eastern and Himalayan
States, will continue as a separate scheme. The Coconut Development
Board (CDB), which has been created through an Act of Parliament for
overseeing the development of coconut in the country, would continue to
independently implement coconut development programmes.
2.2.10.6 Mission interventions:-
• The Mission will be demand and need based in each segment.
Technology will play an important role in different interventions.
Technologies such as Information Communication Technology
(ICT), Remote Sensing and Geographic Information System will be
widely used for planning and monitoring purposes including
identification of sites for creating infrastructure facilities for post
harvest management, markets and production forecasts.

• The interventions envisaged for achieving the desired goals would be

varied and regionally differentiated with focus on potential
crops to be developed in clusters by deploying modern and
hi-tech interventions and duly ensuring backward and
forward linkages.

2.3 Research papers/journals:-

2.3.1 Entrepreneurship in rural micro agri -linked businesses
-Dr. Neetu Andotra
Rural micro agriculture linked businesses though encountered perennial
problems of research crunch, offers immense growth, employment co-
efficient & implication for distribution in agrarian economy of district Kathua,

53
J&K State. Their emergence is the result of unremunerative & seasonal
character of agriculture, marginalization of small farmers, eviction of tenants
and a number of policy measures initiated by the Govt. for promoting self-
employment. The paper examines the significance of Background and key
motivational factors in sustaining rural micro entrepreneurship using X2,
tests of significance and factor analysis. The study suggests adoption of an
integrated & multidisciplinary development approach by including training,
institutional, financial support as a composite package coupled with
improved Technology in agriculture to create `income and output’ affect
which in –turn would increase raw material & demand for rurally produced
goods.

2.3.2 Measuring Vulnerability and Poverty

-Raghav Gaiha and Katsushi Imai
This paper measures the vulnerability of households in rural India, based
upon the ICRISAT panel survey. We employ both ex ante and ex post
measures of vulnerability.
The latter are decomposed into aggregate and idiosyncratic risks and
poverty components. Our decomposition shows that idiosyncratic risks
account for the largest share, followed by poverty and aggregate risks.
Despite some degree of risk-sharing, the landless or small farmers are
vulnerable to idiosyncratic risks, forcing them to reduce consumption.
Income-augmenting policies therefore must be combined with those that not
only reduce aggregate and idiosyncratic risks but also build resilience against
them.

2.3.3 Kisan Credit Card

-Danish Faruqui
Provision of timely and adequate credit has been one of the major
challenges for banks in India in dispensation of agricultural and rural credit
to the farmers. Constant innovation is required in order to achieve the aim.
Agricultural credit cards are not a new concept in the field of agricultural
banking in India. The scheme had already been introduced in a number of
public sector banks in a few states much earlier. These schemes were niche-
marketed and were exclusively preserved for the privileged class of farmers
and the small and marginal farmers did not have much access to them.
Similarly cash credit facilities were being extended by several public sector
banks and cooperative banks to farmers with the view to improving their
access to credit. Again this scheme was used only selectively. The KCC
scheme was started by the Government of India (GOI) in consultation with
the RBI (Reserve Bank of India) and
NABARD (National Bank for Agricultural and Rural Development) 1998-99 to
join the features of both these schemes and to overcome their shortcomings.

54
2.3.5 Grower heterogeneity and the gains from contract farming:
The case of Indian poultry

- Bharat Ramaswami, Pratap Singh Birthal, P.K. Joshi

Purpose:-The purpose of this paper is to offer an empirical analysis of

contract farming (CF) for poultry in the southern state of Andhra Pradesh in
India.

Design/methodology/approach – Through a probit equation, the factors

that matter to their participation in contracting are evaluated. The
estimation of income gains is considered within a treatment effects model.
The risk benefits from contracting are estimated by simulating the variability
of returns if the contract farmers were to be independent growers.

Findings – This paper shows that the poultry integrators in Andhra Pradesh
are able to appropriate almost the entire efficiency gains from contracting.
Yet, the contract growers are better off with the contract. This outcome is
because of grower heterogeneity and the way it is employed in the selection
of contract growers. The paper also finds that contract growers do gain
substantially in terms of risk reduction.

Research limitations/implications -The CF literature reminds us that

these arrangements often fail because of opportunistic behavior. The poultry
example shows that contracting is a useful institution when processor
interests are closely aligned to that of the grower. This paper describes the
circumstances under which this alignment is obtained.

Originality/value- First, it adds to the small and growing body of work that
estimates the income gains to contract growers. Second and going beyond
existing work on developing countries, this paper also addresses the risk
benefits from contracting. Thirdly, this paper estimates the income gains
from contracting to the processing firms.

2.3.6 Indian agri-seed industry: understanding the entrepreneurial

process

-Sushil Kumar, Jabir Ali

Purpose-The paper aims to discuss and analyse the entrepreneurial process

in Indian seed business and factors affecting entrepreneurship in this sector.

Design/methodology/approach -The paper is based on in-depth personal

interviews with 40 entrepreneurs involved in 31 seed ventures belonging to

55
five districts covering three states of India – Uttar Pradesh, Haryana, and
Uttarakhand. These firms were selected following the convenient method of
sampling. All major components of entrepreneurial process – personal traits
and background of the entrepreneur, legal and financial environment, and
market structure – were studied in detail. Descriptive and relational data-
analytic methods were adopted such as frequency distribution, cross
tabulation, and correlation analysis.

Findings –Realizing the importance of availability of quality seed to the

farming community in adequate quantity in the country, current government
policies are geared towards promoting and fostering entrepreneurship in
seed industry in India. The paper finds that the firms established during last
five to ten years have shown continuous growth indicating attractiveness of
the industry. Ability to build entrepreneurial team with complementary skills
and knowledge and experience of the lead entrepreneurs are found to be the
critical success factors in this industry.

Research limitations/implications -The findings of the paper are based

on mainly qualitative data/information collected only from 40 entrepreneurs
belonging to 31 seed ventures.

Practical implications -The study findings have implications for policy

makers as well as for prospective entrepreneurs. It will help in designing
appropriate policy instruments promote and foster entrepreneurship on one
hand and provide suggestions for new entrepreneurs for creating sustainable
new seed ventures on the other.

Originality/value The paper is original and value loaded in the sense that
this provides the practical implications for understanding the entrepreneurial
process in a very critical segment of the agriculture sector.

2.3.7 Reforming the agricultural extension system in India: What do

we know about what works where and why?

- Raabe, Katharina

"In order to realize agricultural potential and to increase agricultural yields,

India's extension system has experienced major conceptual, structural, and
institutional changes since the late 1990s. This paper reviews existing
reform programs and strategies currently existing in agricultural extension in
India. It distinguishes strategies that have been employed to strengthen
both the supply and demand sides of service provision in the area of

56
agricultural extension, and it reviews the effects of the demand- and supply-
side strategies on the access to and the quality of agricultural extension
services. The ultimate objectives are (1) to gain a view on what works where
and why in improving the effectiveness of agricultural extension in a
decentralized environment; (2) to identify measures that strengthen and
improve agricultural extension service provision; and (3) to reveal existing
knowledge gaps. Although the range of extension reform approaches is wide,
this paper shows that an answer to the question of what works where and
why is complicated by the absence of sound and comprehensive qualitative
and quantitative impact and evaluation assessment studies. Even evidence
from the National Agricultural Technology Project and the Diversified
Agricultural Support Project of the World Bank, the women empowerment
programs of the Danish International Development Agency, the Andhra
Pradesh Tribal Development Project, and the e-Choupal program of the
Indian Tobacco Company is subject to methodological and identification
problems. Conclusions regarding the importance (1) of implementing both
decentralized, participatory, adaptive, and pluralistic demand- and supply-
side extension approaches; (2) of involving the public, private, and third
(civil society) sectors in extension service provision and funding; and (3) of
strengthening the capacity of and the collaboration between farmers,
researchers, and extension workers are necessarily tentative and require
further quantification. The paper seeks to inform policymakers and providers
of extension services from all sectors about the need to make performance
assessments and impact evaluations inherent components of any extension
program so as to increase the effectiveness of extension service reforms."
from Author's Abstract

2.3.8 On-farm studies under Rural Agriculture Work Experience

(RAWE) Education Programme in India - Some results
- R.K. Nanwal and K.P. Singh
Chaudhary Charan Singh Haryana Agricultural University started Rural
Agricultural Work Experience (RAWE) programme to expose the out-going
final year undergraduate students of agriculture discipline. The students are
placed in rural areas and attached to farmers’ families to study the crop
production technology adopted by the farmer family, its techno-economic
survey and extent of agriculture extension in the preparation of technology
to the farmers. The students are guided and supervised by a team of
specialized teachers and scientists from Regional Research Stations and
District Agricultural Science Technology Centers. In this programme during
the year 2001-2002 a class of 60 students was offered this programme.
These students were placed in 15 villages of six districts of Haryana state.
Prior to their placement, the students were given basic training for carrying
out survey work in the field. Out of the data collected and submitted by
these students to the teacher incharge, compilation and analysis were made

57
on total income from agriculture including milch and draught animals,
expenditure, net income from subsidiary occupation. These data were
utilized for finding out net income from agriculture, subsidiary income and
income per earning family member of the farmer. The size of holding varied
between 3 acres to 18 acres and, therefore, small, medium and large
holding farmers were covered in these studies.

The analysis of data on net income reveal that income from agriculture
(crops + livestock) was higher under large size holding, however, per unit
net income was more under small and medium size holder. Subsidiary
income from subsidiary occupation like sale of vegetable, operating
telephone booth, preparation and sale of animal feed, operating of a shop
was found to be a good source of income to the farmers’ family. Therefore,
income per earning family member per hectare was higher when there was a
subsidiary occupation of the family. These on-farm studies indicate that
small farm can give good earning provided sufficient resource base is
available with the farmer. The combination of agriculture including livestock
with a subsidiary occupation may help in the improvement of the economic
condition of the farmer. The studies further reveal that a combination of
education and on-farm research and extension programme had better
exposure of fresh agricultural graduates to the real ground problems at
farmers field and acted as a tool of the feed back to research workers for
planning their research programmes.
2.3.9 Sustainable development of rainfed agriculture in India
- Kerr, John M.

India's agricultural growth has been sufficient to move the country from
severe food crises of the 1960s to aggregate food surpluses today. Most of
the increase in agricultural output over the years has taken place under
irrigated conditions. The opportunities for continued expansion of irrigated
area are limited; however, so Indian planners increasingly are looking to
rainfed, or unirrigated agriculture to help meet the rising demand for food
projected over the next several decades. Given that rainfed agriculture
should receive greater emphasis in public investments, a key issue is how
much investment should be allocated among different types of rainfed
agriculture. This paper addresses a wide variety of issues related to rainfed
agricultural development in India.

2.3.10 Weather-risk hedging by farmers: An empirical study of

willingness-to-pay in Rajasthan, India

58
 - Rajiv Seth,Valeed A. Ansari,Manipadma Datta

Purpose –Small farmers in developing countries have very little means of

managing the weather-risk to their agricultural produce. Weather derivatives
could provide a solution, but the demand for such instruments and the
willingness to invest in them needs to be researched. The purpose of this
paper is to assess weather-risk hedging by farmers, focusing on the
willingness to pay in Rajasthan, India

Design/methodology/approach – The paper presents results of a

contingent valuation study done on the findings of a survey carried out in six
villages in the state of Rajasthan. The survey was done on over 500 farmers
after explaining the concept of weather derivatives and how they would work
to help them hedge their weather-related yield risk. The survey included
questions on factors, which could have a bearing on the farmers' willingness
to pay, and a bidding game where responses were solicited to premiums in a
hypothetical market. Probit and logit models are used to determine
probabilities of “Yes” responses to various bids and the mean willingness-to-
pay.

Findings –The paper brings out a model, which uses nine independent
variables affecting the probability of a farmer saying “Yes” to a price quoted
to him for a weather derivative. Using the results from the probit and logit
models, the farmers' mean willingness-to-pay is determined to be around
8.8 per cent of the maximum possible payout of weather derivative contract.

Originality/value – With weather derivatives being accepted as a means of

risk management for agriculture in developing countries, the willingness-to-
pay figures determined in this paper would provide an insight to the
structuring and pricing of weather derivatives, especially in developing
countries.

2.3.11 Weather derivatives: risk-hedging prospects for agriculture

and power sectors in India

- Anil K. Sharma, Ashutosh Vashishtha

Purpose –This article aims to examine the state of risk management in
agriculture and power sector of India, evaluate the effectiveness of weather
derivatives as alternative risk management tools and basic framework
required to implement them.
Design/methodology/approach – Applications of traditional risk-hedging
tools and techniques in Indian agricultural and power sectors have proved to
be costly, inadequate, and more importantly, a drag on the country's fiscal
system. Mostly they offer a hedge against only the price risk. The volume

59
related risk, which is rather more serious and highly weather-dependent,
remains practically unhedged. This study has used existing literature and
empirical evidences for analyzing the various issues related to risk
management in agriculture and power sector. Traditional derivative
strategies have been used to construct weather derivatives contracts with
different underlying weather indices.
Findings –The article suggests that how an appropriate weather-based
derivative contract system may be a more flexible, economical and
sustainable way of managing the volume-related weather risk in an
economy, like India, having predominant agricultural and power sectors.
Originality/value – The article will be of value to all those who have some
stakes in agricultural and power sectors of an economy and would like to
mange the volume related risk in these sectors.

2.4 Conclusion:-
The study emphasizes the importance of smallholder agriculture
development (with institutional support for labour-demanding technical
change) in driving growth in poor rural areas, but also the limitations of such
growth on its own in driving poverty reduction. In some areas agriculture
may not have the potential to drive much growth, and even where such
potential exists, widespread and significant poverty reduction will only be
achieved when initial agricultural growth stimulates rapid growth in rural
non-farm employment. This requires significant economic structural change
and depends heavily upon second-round effects and growth multipliers in the
local economy. Differentiated microeconomic policies should therefore have
direct, first-round effects that will significantly tighten markets into which
the poor can supply (for example, unskilled labour markets) and/or
significantly loosen markets from which the poor buy (for example, staple
food markets.
Policies promoting these conditions must stimulate structural change in
relations between the farm and non-farm sectors and adapt to encourage
different forms of institutional development appropriate to different stages of
growth. Careful sequencing, design and implementation of investments is
also needed
(a) to install critical basic conditions (such as infrastructure, technology, and
equitable and secure access to land),
(b) to ensure that complementary markets, services and conditions develop
together, and
(c) to prevent policy implementation and benefits being subverted and
captured by special interest groups.

60
• In most poor rural areas both the farm and non-farm sectors are critical
for poverty reduction, with different but complementary contributions to pro-
poor growth. Both sectors must grow so that the non-farm sector can build
on, but increasingly take over, smallholder agriculture’s initial dominant
influence on real wages and food security.
• Critical conditions necessary for the initial stages of PPAG are labour-
demanding technical change that delivers significant productivity gains, and
access to stable input, output and financial markets supporting such
technologies; and transmission to the poor of the benefits from the
widespread
adoption of technology through a tightening of labour markets and falling
grain prices (which must not proceed ahead of and choke growth).
• The process of structural change requires policy analysis to differentiate
between stages of development in poor rural areas and between different
categories of rural people, and needs careful sequencing and targeting of
policies. The early stages of growth require an active coordinating role by
some central player(s) with larger hierarchical structures. In the past the
state has both financed and attempted to deliver such co-ordination,
achieving outstanding success in some cases but abject failure in others.
Finding new and more effective co-ordination mechanisms with different
roles for the state, the private sector and civil society presents major
technical, administrative and political challenges in the design and
implementation of policy.
• Further subsidies may often be necessary to make input purchases for
improved technologies both profitable and affordable (provided that basic
infrastructure and viable technologies exist, but supporting market systems
are weak, with low volumes and high costs and risks). The design and
implementation of subsidies for output price stabilisation and credit delivery
pose challenges, but if effective such subsidies will often be more efficient
than blunter input subsidies.
• Investment in PPAG is a major undertaking that will not work everywhere
and that requires large-scale and long-term investments. It faces significant
challenges, outlined above, in difficult demographic, political and global
economic conditions. It is a risky and long-term project, but there are few
alternatives other than the unacceptable prospect of increasing rural
poverty, desperate rural-urban migration, and indefinite large-scale welfare
and safety-net support that ultimately can only aim to sustain people in
poverty.

61
 CHAPTER 3
62
 RESEARCH PLAN

3.1 Introduction:-
On the eve of Independence in 1947, Indian agriculture was characterized
by feudal land relations and primitive technology, and the resultant low
productivity per hectare. As a consequence, rural India presented a picture
of mass poverty and widespread unemployment and under-employment.
Therefore, the first task of the Government in the immediate post-
Independence period was to initiate growth process in agriculture on
modern lines. Modernization of agriculture was required both in terms of
technological and institutional changes. The Mid-term Appraisal of the Tenth
Five Year Plan (2002-07) drew attention to the loss of dynamism in
agriculture and allied sectors after the mid-1990s.

Hence, various research initiatives have been taken in recent years to

promote the agricultural sector. There are some institutes doing researches
in this field to know the status of farmers and what are their demands some
names of such institutes are as follows:-

NATIONAL BUREAU OF GENETIC RESOURCES

1. Bureau of Plant Genetic Resources
2. Bureau of Animal Genetic Resources
3. Bureau of Fish Genetic Resources
4. Bureau of Microbial and Fungal Genetic Resources
5. Bureau of Insect and Nematode Genetic Resources
6. Research Centre-DNA finger printing

CROP INSTITUTES
1. Central Rice Research Institute
2. Directorate of Rice Research
3. Project Directorate of Wheat Research
4. Directorate of Maize Research
5. Directorate of Sorghum & Millet Research
6. Indian Institute of Pulses Research
7. Indian Grassland and Fodder Research Institute

63
 8. Indian Institute of Sugarcane and Sugarbeat Research
9. Sugarcane Breeding Research Institute
10. Central Institute of Cotton Research
11. Directorate of Oilseeds Research
12. Directorate of Research on Non-Traditional Crops
13. Central Institute for Research on Jute and Allied Fibres

PLANT PROTECTION
1. Directorate of Biological Control
2. Directorate of Research on Integrated Post Management

HORTICULTURE, VEGETABLE & FLORICULTURE

1. Indian Institute of Horticulture Research
2. Central Institute of Sub-Tropical Horticulture
3. Central Institute of Temperate Horticulture
4. Central Institute of Arid Horticulture
5. Indian Institute of Vegetable Research
6. Central Potato Research Institute
7. Central Tuber Crops Research Institute
8. Central Plantation Crops Research Institute
9. Indian Institute of Spices Research
10. Centre for Research on Orchids

NATIONAL RESOURCE MANAGMENT

1. National Bureau of Soil Survey and Land Use Planning

2. Indian Institute of Soil Science
3. Central Soil Salinity Research Institute
4. Central Soil and Water Conservation Research and Training
Institute
5. Water Technology Centre for Eastern Region

CROPPING SYSTEMS/FARMING SYSTEMS

1. Central Research Institute for Dryland Agriculture
2. Central Arid Zone Research Institute
3. Cropping Systems Research Institute
4. Vivekanand Parvatiya Anusandhan Shala

64
 5. Centre for Research on Weather, Climate and Agriculture
6. ICAR Research Centre for Goa
7. ICAR Research Centre for NEH Region
8. ICAR Research Centre for Eastern Region

AGRIUCLTURL ENGINEERING
1. Central Institute of Agricultural Engineering
2. Centre for Energy Management in Agriculture
3. Central Institute for Research on Cotton Technology
4. Central Institute for Research on Jute and Allied Fibre
Technology

MULTIDISPLINARY INSTITUTE
Institute of Post-Harvest Science and Technology

AGRICULTURAL STATISTICS & ECONOMICS

Indian Agricultural Statistics Research Institute
National Centre for Agricultural Economics & Policy Research

AGRIUCLTURAL EXTENSION
Institute of Agricultural Extension
Research Centre for Women in Agriculture

EDUCATION
National Academy of Agricultural Research Management
Central Agricultural University

NATIONAL UNIVERSITIES (RESEARCH & EDUCATION)

Indian Agricultural Research Institute
Indian Veterinary Research Institute
National Dairy Research Institute
Indian Institute of Fisheries Education

The impulses of economic reforms have been relatively less in scope and
depth in the agricultural sector. Reforms in this sector were introduced only
towards the end of the 1990s. These have included, inter alia, the following:
(a) partial decontrol of fertilizer prices, (b) removal of bottlenecks in
agricultural marketing, (c) relaxation of restrictions under the Essential

65
Commodities Act, 1955 and (d) introduction of forward trading in important
commercial crops.

3.2 Meeting the Objectives:-

1) Investment in agriculture has suffered a decline over the past two
decades. Capital formation in agriculture and allied sectors in relation to GDP
started declining in the 1980s which has adversely affected irrigation and
rural infrastructure development. Therefore, investment in agriculture
particularly in irrigation needs to be increased.

2) The present day agricultural crisis can be converted into an

opportunity for not only reversing the decline, but for taking the agricultural
revolution forward by helping farm families to bridge the gap between
potential and actual yields in all major farming systems to mutually
reinforcing packages of technologies, services and public policies. Progress in
agriculture should be measured by the growth rate in the net income of farm
families, if the human dimension is to be added to agricultural policies.

3) Self-sufficiency, maintaining low food price, raising agricultural

exports, investments for upgrading production potential in a cost-effective
and sustainable mode are over-riding concern in agriculture. In the post-
WTO era, both export and import of the country have increased
substantially. However, increase in imports of food items is relatively higher
than in export. This trend is adversely affecting self-reliance in agriculture
which needs to be reversed.

4) Substantial public investment in infrastructure and supportive policies,

involving agricultural marketing, production, processing, trade, etc. is
needed to create a favourbale environment for the development of
agriculture in the country. Increasing population, need to maintain self-
sufficiency, national food and nutritional security and raising the income of
farmers necessitate substantial increase in the agricultural output.

66
5) In order to achieve Ever-Green Revolution, emphasis is to be laid on
rainfed agriculture so as to make these gray areas green. This is critical for
sustainability, improved livelihood and income of resource poor farmers.

6) Agriculture marketing in the country is going through a phase of major

transformation. The marketing reforms permitting setting up of competitive
agricultural markets in private and cooperative sector, promote direct
marketing and contract farming. This has opened the doors for farmers and
for all scales of business to participate in areas such as setting up private
agricultural markets, marketing infrastructure, supply chain and logistic,
banking, finance and other Agri-marketing services.

Market driven diversification in global perspective has become the new

paradigm driving future agriculture growth. Livestock, fisheries,
horticulture, specialty enterprises (spices, medicinal, aromatic, organic)
and value added products has great potential for export.

7) A new thrust in biotechnology, nanotechnology and information &

communication technology (ICT) can contribute technologies to resolve key
concerns related to agriculture. The key concerns include the need of
energy for use in agriculture, enabling access to information, knowledge and
skills through use of ICTs for agricultural communities, enabling food safety
and control of animal and plant diseases and their spread, ensuring
environmental safety and sustainable use of natural resources.

8) Post-harvest and value addition in agricultural and horticultural crops

and livestock products should be given priority so that farmers can get
additional employment and income. There is great scope for export of fruits,
vegetables, flowers, meat and fish provided international standards with
respect to quality and packaging can be ensured.

3.3 Research issues & challenges:-

Confederation of Indian Industry points out that Indian agriculture still
suffers from:-

67
 • Poor productivity.
• Falling water levels.
• Expensive credit.
• A distorted market.
• Many intermediaries who increase cost but do not add much value.
• Laws that stifle private investment.
• Controlled prices.
• Poor infrastructure.
• Produce that does not meet international standards.
• Inappropriate research.
• Tax evasion by unorganized sector leading to the lack of a level
playing field.

It is here the challenge arises considering the implementation of the

technology at various levels in the Global community. The need of the hour
is not application of the technology but the adoption of appropriate
technology, which would suit the particular level of the global community. In
India, the farming practices are too haphazard and non-scientific and hence
need some forethought before implementing any new technology.

3.4 Research questions:-

 Critical issues in Indian agriculture:-
The critical issues that plague Indian agriculture at present are the
knowledge deficit and infrastructure deficit, especially in the rural
areas. Problems related to irrigation infrastructure, market
infrastructure and transport infrastructure add significant cost to
farmers' operations. Another issue is lack of delivery mechanisms.
There are a number of schemes aimed towards developing agriculture.
We don’t have effective delivery mechanisms that can translate those
into effective facilitation at the ground level, in terms of increasing
productivity or decreasing cost or increasing price realization.

68
 The irrigation infrastructure in India is disparate in its access
and reach to various regions in the country. Similar irrigation
facilities do not occur across all regions and within the same
region not all farmers have equal access. What are the main
reasons for this inefficiency?
Irrigation in India can be broadly classified into two parts: the surface
irrigation part and the ground water part. The issues related to each of
these are completely different. As far as surface irrigation is
concerned, there are a few major problems. One is the system
management itself. We do not effectively manage water bodies, in
terms of how much water is stored, how much is being used for
irrigation, or what value we can add to this water. This is partly
because it is seen more of an engineering kind of work rather than
looking holistically that its main purpose is irrigation. We, therefore,
do not have the mindset to make the best use of water for irrigation
purposes. Consequently, water use efficiency is very poor in India and
remains a major concern. According to many estimates, the extent of
area irrigated compared to the capacity built is very low, averaging
about 40%. We have problems like water logging at the head part of
the water bodies and deficit at the tail-ends. Big dams have their own
problems like rehabilitation of people, ecological concerns and whether
they adequately serve their purpose. So these are issues with respect
to surface irrigation.

There have been criticisms of the current policies in managing

food scarcity caused by drought and failure of rains. What is
your opinion about the current food policy and food security in
India?

The basic question is that whether the government should be doing so

many things i.e. getting into PDS etc. or should it only come in when
there is a drought or famine. The current debate is that we need to
ensure that there is enough food for people and there is access to
food. The issue is that we have a trend that focuses more on wheat &
paddy and their growth rate and productivity has not been very high.
There are concerns are about whether we can actually feed the
growing population or not. Some issues that are emerging are that
should we also look at the local food sufficiency or not. Earlier every

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 area would have one or the other food crop but because of the
popularization of rice and wheat we may have lost many coarse
cereals and therefore the ability to produce these coarse cereals.
Though now we do realize that nutritionally they are important so
should we have more of a local focus on food security depending on
the requirement and ability to produce food grains? Should we see
whether the food grain produced in that area is able to meet the
requirement of that area and what could be done on say the
technology front so that these cereals could be produced locally and in
difficult areas and thus ensure food security.

 At the national level there is repeated talk about interlinking of

rivers and small dams. How feasible are these two proposals?
One part is that it is considered enormously expensive. We also do
not know if we will be able to manage the systems well, given the fact
that large systems have not been well-managed in the past. We may
also end up creating unintended problems like flooding in certain areas
and worsen the existing situation. At some point we have to talk about
how to manage better the existing systems, let alone creating new
systems. If 40% of the command area is being irrigated, our focus
should be about managing them well rather than creating new dams.
So those are issues we need to look at and try to streamline current
systems than spending enormously on new big projects.

3.5 Motivation:-

Every research is based on a motivation because what makes people to

undertake research? This is an always a question of fundamental
importance. Our motivations behind this project are-

 Desire to face the challenge in solving the unsolved problems, i.e.,

concern over practical problems initiates research

 Desire to be of service to society

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However, this is not an exhaustive list .Many more factors such as directives
of government, curiosity about new things; desire to understand causal
relationships, social thinking and awakening are also play an important role
to choose this area as our research.

Entrepreneurship motivational and sustainability factors

Entrepreneurship originally conceived by Schumpeter (1934) expanded its
innovative domain from independent businessperson, an employee or
manager of a firm, to development of a new product or service, a new
channel of distribution, or the organization of an entire industry
(Birkinshaw2000). It is a process presents the dynamics of the individual
and the context (Gartner 1985; Scolt & Anderson 1994; Solymossy1997).
In agriculture due to fluctuating price and agriculture yield, marginal size of
landholdings and dependency on wage employment at the time of crises
resulting that rural households constructs a diverse portfolio of activities and
social support capabilities for survival in order to improve their standard of
living (Ellis 2000 & Berry 1980. Motivational factors emerged from the
empirical researches on entrepreneurs such as desire to start a
business, need for autonomy, need for challenges & self –actualization,
internal locus of control, prior work experience desire for applause are
further conditioned by a variety of forces: job, family needs, debts
and obligations and the routine of everyday life also equally applies to
rural micro agri.-linked businesses. The bulk of early research on
entrepreneurship discussed entrepreneurship as a function of
psychological and personality characteristics (McClell 1961 and Brock
haws1982

3.6 Research Methodology:-

1. The research problem: The purpose of this project is to do study of
government schemes which employ constructive active learning
pedagogy, teach higher order thinking skills, and that introduce
analysing skills to MBA students. We will do the rigorous study of
government schemes then go to check the real status of these
schemes in the rural areas to check the awareness and find the
perception of usefulness for the agriculture Schemes.

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 2. Extensive literature survey: This is the most important part of any
research because it gives us the understanding to do our research in
the right direction .So we undertake extensive literature survey
connected with the problem. For this purpose, we go to the abstracting
and indexing journals and published or unpublished bibliographies. We
tapped academic journals, conference proceedings, government
reports, books etc.

3. Working hypotheses:
Null Hypothesis : There is no relation between awareness and perception of
usefulness of government schemes in rural areas and their success.

Alternative Hypothesis : There is relation between awareness and

perception of usefulness of government schemes in rural areas and
their success.

4. Research design:

For our research we obtain the information from extensive Literature Review
and Rural Survey. As the purpose of our research study is that of exploration
that why we chose a flexible research design which provides opportunity for
considering many different aspects of a problem

5. Determining sample design: As the total geographical area of

interest is big one we chose Area Sampling. Area Sampling is quite
close to cluster sampling and is often talked about when the total
geographical area of interest happens to be big one. Under area
sampling we first divide the total area into a number of smaller non-
overlapping areas, generally called geographical clusters, then a
number of these smaller areas are randomly selected, and all units in
these small areas are included in the sample. Area sampling is
especially helpful where we do not have the list of the population
concerned. It also makes the field interviewing more efficient since
interviewer can do many interviews at each location.

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Flow chart of our Research Design:-

Literature Review

Choose the most important schemes for our

research Project

Design Sample Questionnaire

Pilot Survey to check the Sample

Questionnaire

Design Final Questionnaire Sort out the problems

Interviewed Rural People

Analyze the data

Find the relation between awareness and

perception of usefulness of government
schemes in rural areas and their success

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 If more awareness and perception of
usefulness of government schemes in rural
areas with more success

Null Hypothesis true Alternative hypothesis true

Show the Findings

6. Collecting the data: First to design our questionnaire we collect

information from internet, journals, academic report and government
offices. After designing questionnaire we go to village for rural survey.
Collect raw data from our research. We interviewed villager on 5
different villages to get detail and unbiased information about
government schemes.

7. Execution of the project: To execute our project a very important

step is research process. Approximately 4 months for our project. We
divide our time such a manner that we are able to complete our
research within predetermined time.
I. Literature Review one and half month
II. Sampling of questionnaire 15 days
III. Plot survey and design final questionnaire 20 days
IV. Final survey and analysis of data 1 month

8. Analysis of data: After the data have been collected, we turn to the
task of analyzing them. For the analysis of data we have done number
of closely related operations such as establishment of categories, the
application of these categories to raw data through coding, tabulation
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 and then drawing statistical inferences. Thus, we have classified the
raw data into some purposeful and usable categories.
Coding operation we have done at this stage through which the
categories of data are transformed into symbols that may be tabulated
and counted.

Editing is the procedure we have done that improves the quality of

the data for coding. With coding the stage is ready for tabulation.
Tabulation operation we done for the getting data in the form of
tables. Analysis work after tabulation is generally based on the
computation of various percentages, coefficients, etc., by applying
various well defined statistical formulae.
The technique of analysis of variance help us in analyzing whether
three or more varieties of seeds grown on certain fields yield
significantly different results or not. In brief, the we have analyzed the
collected data with the help of various statistical measures.

9. Hypothesis-testing: To test our hypothesis we conduct survey in 5

villages and interviewed rural people about the schemes. With the data
Analysis we are able to check the validity of our hypothesis.

10. Generalizations and Conclusion: After testing hypothesis we

are able to generalize our finding and come to the conclusion that
whether there is relation between awareness and perception of
usefulness of government schemes in rural areas and their success or
not. If yes what is the behavior positive or negative.

3.7 CONCLUSION:-
India lives in villages. The villagers depend on agriculture. They are either
farmers or workers on the agricultural fields. Ours industries and urban
business also depend on agriculture. Thus, an Indian farmer truly represents
India. He can be called the son of the soil and also the backbone of India. It
is on his sweet and labour that our progress and prosperity depend. We all
know that our backbone gives us support to our body. If something becomes
to our backbone we will suffer many problems. In same way farmers are
said to be backbone of India. If something will become to farmer then India
will suffer many problems. He supports us by producing all basic food needs
like grains, vegetables, milk, etc.

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 It is he who feeds and
clothes the people. An Indian farmer is very hard working and very busy
throughout the year. For him there is no rest nor weekend holiday. He is
engaged in tilling the soil, sowing the seeds, watering the fields, reaping and
harvesting the crop and then taking it to the market to sell it. And yet he is
very poor. He is being exploited by the money-lenders and the middleman.
He is unable to recover his money spent during the harvesting period.
His needs are few and simple and
yet they are not met. Their exploitation should be stopped. They should be
distributed agricultural land. They should be given cheap loans and other
facilities. They should be given better seeds, fertilizers and return for their
produce. The irrigation facilities should be improved.

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