Animal Husbandary

Speech of Hon’ble MOS (Agriculture) to be delivered while inaugurating the 2nd International Summit-cum-Exhibition on Processed Food Agribusiness and Beverages



I am happy to note that this special session is being organised to identify programmes, strategies and partnerships to improve production and quality in the field of processed food, agribusiness and beverages.

You all know that agriculture sector is vital for food security of the country. It is the principal source of livelihood for more than 58% of the population but its contribution to the national GDP is only about 18%. This structural imbalance and mismatch between income generation in the farm sector visa-à-vis and non-farm sector needs to be addressed immediately. I earnestly hope that the deliberations of this session will provide some direction towards this end.

Let me briefly outline the various initiatives taken by the Government for the development of Agriculture sector with special emphasis on famers’ income and inclusive growth:

1. GROWTH RATE: The Government has taken a number of initiatives to give further boost to agricultural sector. While the global economy had been reeling under recession in the last one year and our farmers had been facing vagaries of weather, the average growth rate of agriculture sector was more than 4% during the last 4 years. I am grateful to the farming community of India for sustaining this growth and for providing food security to the nation.

2. MINIMUM SUPPORT PRICE: In order to make agriculture a remunerative vocation on a sustainable basis, substantial increase in the MSP of major cereals ranging from 49% to 78% was provided during the last 5 years. MSPs of pulses & oilseeds were enhanced by up to 83% during the same period.

During the last five years Government has mostly been accepting the recommendations of Commission for Agricultural Costs and Prices (CACP) and in some cases has also announced higher prices along with bonus.

3. OUTLAY FOR AGRICULTURE / INVESTMENT IN AGRICULTURE: As a result of progressive steps taken by the Government during the last 5 years in agriculture & sectors, the declining trend has been reversed, and the share of public investment in Gross Capital Formation in agriculture and allied sectors has been going up. I am glad to inform you that during 2004-05 to 2007-08, the total investment in agriculture increased in the range of 8% to 14.2% per annum. The public sector investment increased faster in the range of 17.6 % to 22.5%. However, this process of investment in agriculture both in public and private sector needs to be accelerated in the coming years.

With a view to increase the investment in agriculture, two major programmes, Rashtriya Krishi Vikas Yojana with a Plan outlay of Rs.25,000 crores and National Food Security Mission with a Plan outlay of about Rs.4900 crores were launched to incentivize investments by the States and the farmers.

4. NATIONAL FOOD SECURITY MISSION (NFSM): Food security at national and at the household level is of paramount importance for this Government. With a view to enhance production of foodgrains to meet increasing demand on account of burgeoning population, National Food Security Mission (NFSM) is being implemented in 312 identified districts of 17 States from Rabi 2007-08. An additional production of 20 million tonnes of foodgrains, comprising 10 million tonnes of rice, 8 million tonnes of wheat and 2 million tonnes of pulses by the end of Eleventh Plan (2011-12) has been targetted.

5. RASHTRIYA KRISHI VIKAS YOJNA (RKVY): Rashtriya Krishi Vikas Yojana is a unique scheme in which the States have been given the responsibility of planning and implementing agriculture and allied sectors (including animal husbandry, dairy and fisheries) related programmes most suited to their regions. It envisages the concept of District Agricultural Plan and State Agricultural Plan thereby giving the required flexibility to the States.

6. NATIONAL HORTICULTURE MISSION (NHM): The National Horticulture Mission is being implemented since the year 2005, with requisite backward and forward linkages and an end-to-end approach covering research, production, post-harvest management, processing and marketing, with active participation of all stakeholders. Since inception of the Scheme, about 12.61 lakh hectares (ha.) area has been brought under new gardens, 2.06 lakh ha. of old senile plantations rejuvenated and Integrated Pest Management/Integrated Nutrient Management has taken up in 5.73 lakh ha. Under the post harvest management component, 1108 Pack Houses, 109 Cold Storage Units, 8 Wholesale Markets and 51 Rural Markets have been set up.

7. MACRO MANAGEMENT OF AGRICULTURE (MMA): Macro Management of Agriculture (MMA) aims at all round development in agriculture through Work Plans prepared by States. MMA Scheme provides the states to choose among various interventions based on the Work Plan finalized in an interactive mode to supplement and complement the States’ efforts in the agriculture sector. Under the scheme, 90% of the outlay is provided by the Central Government.

8. NATIONAL PROJECT ON MANAGEMENT OF SOIL HEALTH AND FERTILITY (NPMSF): In order to promote judicious and balanced use of chemical fertilizers, there is an urgent need for expanding soil testing facilities in the country with a provision for micro-nutrient testing facility. A new Scheme, namely, “National Project on Management of Soil Health and Fertility” (NPMSF) has been introduced during 2008-09 under which 250 mobile & 500 static Soil Testing Labs and 70 Fertilizer Quality Control Labs were established. Upgradation and strengthening of existing labs also is proposed to be done NPMSF.

10. ORGANIC FARMING: We are committed to giving thrust to conservation agriculture to ensure sustainability of production levels while enhancing quality of the output. Therefore, we are promoting use of bio-fertilizers, bio-pesticides, bio-insecticides and organic farming under various components of National Project on Organic Farming and National Horticulture Mission. Due to these efforts of the Government, which have been well received by the farmers, the total certified area under organic farming (including area under conversion) has increased from 42000 ha. in 2003-04 to more than 10 lakh hectares last year.
11. MICRO IRRIGATION: With a view to incentivize efficient use of available water resources, a Centrally Sponsored Scheme on Micro Irrigation was launched in 2006. The use of micro irrigation systems results in increase in crop yield, reduction in fertilizer intake, labour cost etc. Since inception of the Scheme, about 13.49 lakh ha. has been covered under drip and sprinkler system upto March, 2009.

12. EXTENSION ACTIVITIES: Extension activities are essentially in the domain of the State Governments and the Central Government is providing support to their efforts through various programmes. A scheme “Support to State Extension Programme for Extension Reforms” was launched in 2005. An autonomous body Agriculture Technology Management Agency (ATMA) is set up at the district level with active participation of farmers, farmer groups, NGOs, Krishi Vikash Kendras, Panchayati Raj Institutions and other stakeholders operating at district level and below. A total number of 586 rural districts have been covered under the scheme in 27 states and 2 Union Territories. A vast network of 558 Krishi Vigyan Kendras (KVKs) for dissemination of technology through demonstration has been established. Besides this ATMA scheme, 3 more schemes for agriculture extension viz. Agri Clinics and Agri Business Centres, Mass Media Support to Agriculture and Support to Central Institutions are also being implemented.


13. WAREHOUSING AND COLD-CHAIN: It is widely recognized that the investment in warehousing and cold-chain in the country is inadequate. In effect, the investment in this sector has not kept pace with the increase in production both of foodgrains and horticulture. It is also recognized that investment by the private sector in this regard is very important. Therefore, to incentivize investment by the private sector in warehousing and cold-chain the Finance Minister in his budget speech has announced investment-linked tax incentives to the businesses of setting up and operating ‘cold chain’, warehousing facilities for storing agricultural produce and the business of laying and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle. Under this method, all capital expenditure, other than expenditure on land, goodwill and financial instruments will be fully allowable as deduction. With this announcement, it is expected that the warehousing and cold-chain infrastructure in this country will get a boost and the farmers get the benefit of this investment by reducing their losses in handling and transportation. We have also issued guidelines for setting up Terminal Market Complexes in Public Private Partnership (PPP) mode by providing subsidy @ up to 40% of the eligible capital cost with a ceiling of Rs.50 crores per market.

14. CREDIT FLOW: In order to improve the flow of credit and to ameliorate condition of distressed farmers, the Government of India had announced a special farm credit package on 18.06.2004. As a result, total credit flow has increased from Rs.86,981 crores in 2003-04 to Rs.2,87,149 crores in 2008-09 and is further targeted to increase to Rs.3,25,000 crores in 2009-10. In the Budget 2009-10, an additional interest subvention of 1% has been proposed for the farmers who pay their loans in time.

15. CROP INSURANCE: National Agriculture Insurance Scheme is being implemented by 24 States and 2 Union Territories. The scheme is demand driven. However, the progress of the scheme can be measured in terms of farmers/area covered, sum insured, premium collected, claims paid and farmers benefitted. During the last eighteen crop seasons (i.e. from Rabi 1999-2000 to Kharif 2008), 1274 lakh farmers have been covered over an area of 2009 lakh hectares insuring a sum amounting to Rs. 135343 crore. Claims to the tune of about Rs. 11596 crore have become payable against the premium income of about Rs. 4076 crore benefiting about 302 lakh farmers.

16. RAINFED FARMING: Approximately 60 percent of the 142 million hectare of cultivated land and 45 per cent of production is under rainfed farming. Therefore, the Government of India has accorded very high priority to the holistic and sustainable development of rainfed areas through an integrated watershed development approach. The National Watershed Development Project for Rainfed Areas (NWDPRA) was launched in 1990-91 in 28 States and two UTs based on the twin concepts of integrated watershed management and sustainable farming systems. It is proposed to develop about 2.31 million hectare in the Plan period covering about 3,783 micro watersheds.

17. DEBT WAIVER AND DEBT RELIEF SCHEME: The Government is fully seized of the serious problem of indebtedness of farmers. Therefore, a scheme of debt waiver and debt relief for farmers was announced by the Government in the Union Budget 2008-09. The scheme has benefitted about 3.68 crore of farmers with total amount of waiver and relief amounting to about Rs.65318.33 crore. Due to the late arrival of monsoon, the Government has decided to extend this period by six months upto 31st December, 2009. Besides this, based on the approval given by the Government of India, the States are implementing a special rehabilitation package of Rs. 16978.69 crore for 31 suicide prone Districts in the four States of Andhra Pradesh, Maharashtra, Karnataka and Kerala.