Agriculture Division

The following are the functions of the Agriculture Division:

To formulate plans for the development of sub-sectors of Agriculture. This involves the following tasks :o Setting up of Working Groups on various sub- sectors/subjects for the formulation of Five Year Plan, Annual Plan, finalisation of their composition and terms of reference, processing their reports and preparation of evaluation notes, preparation of background notes identifying the thrust areas that may need specific attention and taking follow up action on the discussion of the Group. o Identification of policy directions, major strategies and thrust areas for inclusion in the Approach documents of the Planning Commission. o Preparation of background notes and organising meetings with the concerned Central Departments/Ministries for the finalisation of approaches, policies, strategies, targets, investment priorities etc. in the context of the formulation of Five Year Plans. o Drafting of sub-sectoral sections for inclusion in the Draft Plan Document. Briefs prepared in respect of sub sectors state-wise for the use of Deputy Chairman's discussions with Chief Ministers to finalise Annual Plan outlays. These briefs are made use of by State Plan Advisers in their briefing meetings with Deputy Chairman and Members of the Planning Commission. Organising Working Group meetings to finalise Annual and Five Year Plans, draft Five Year Plan proposals and proposals of the State Government. This involves preparation of background papers, discussions on inter-se plan priorities, critical examination of plan proposals in relation to plan objectives and approaches, preparation of Working Group reports giving, interalia, outlays and physical targets. Finalisation of Annual Plans of the concerned Central Ministries/Departments and the State Governments. This includes assessment of progress, both in physical and financial terms, in relation to the approved targets and outlays, schemewise examination of the proposals and recommendations regarding targets and outlays for the next Annual Plan. To criticaly examine the offered comments on the Expenditure Finance Committee Memos relating to Central Plan schemes. Cabinet Notes, VIP references concerning Agriculture Sector, etc. To conduct studies on important matters concerning Agriculture and Allied Sectors. To maintain close liaison with the concerned Central Ministries and State Governments and to also coordinate with organisations/ institutions with a view to ensuring follow-up of various Plan policies, strategies and programmes. Work relating to Parliament Questions, Parliament Committees, etc.

2. The subjects dealt with in this Division are: I Agricultural Research and Education :-

General policies and schemes relating to Agricultural Research and Education, ii) Indian Council of Agricultural Research and various Central Research Institutes, Development of Agricultural Universities.

II. Agricultural Extension and Administration

Agricultural Administration at different levels. Transfer of Technology to the field Strengthening of Extension Machinery Coordination and linkage between extension, research and input agencies and local organisation. Agricultural Inputs Soil and Water Conservation including Land Reclamation Rainfed Farming - major crops o Foodgrain crops like wheat, rice, cereals and pulses, o Commercial crops like oilseeds, sugarcane, cotton, jute & mesta. o Plantation crops like coffee, tea, rubber, spices and tobacco.

Development of Horticulture crops Agricultural Statistics Agricultural Export Small Farmer Agri-Business Consortium Animal Husbandry o Cattle and Buffalo breeding and their development o Cross-breeding of Cattle o Feed and Fodder development o Development of sheep, wool, goat, pigs, equines and mule, etc. including organisation of their cooperatives o Cattle and Buffalo breeding farms o Control of livestock diseases o Biological products and their production o Establishment or quarantine-cum-certification service stations o Production of livestock products, i.e., milk, eggs and wool o Animal Welfare Board o Compilation of Statistics and Research in respect of Animal Husbandry and Dairying o Organisation of slaughter house corporation Dairying and Milk Supply o Dairy Development o Implementation of Operation Flood III Project o Organisation of marketing of milk and dairy cooperatives o Establishment of cattle feed plants Fisheries o Policies and objectives during the Plan o Targets of fish production and programmes o Strategy for fish production o Marine Fisheries o Inland Fisheries o Training and Extension Agricultural Marketing, Storage and Warehousing o Regulation, Management and Development of Markets o Quality Control o Marketing, Research, Surveys and Studies o Agricultural Marketing Extension o Rural Godowns Cooperation, Agricultural Credit and Crop insurance o Cooperative Credit o Cooperative marketing o Cooperative Processing o Cooperative Storage o Consumer Cooperatives o Cooperative education, training and research o Cooperative for weaker sections e.g. labour cooperatives and transport cooperatives o Agricultural credit through various institutional sources: Cooperatives Commercial banks Regional Rural banks Crop Insurance

1st Five Year Plan

Chapter 9:

THE STATE OF THE AGRICULTURAL ECONOMY

The largest portion of the natural resources of India, consists of land and by far the larger roportion of its inhabitants are engaged in the exploitation of land. In any scheme of lanned economic development of the country, therefore, agricultural reorganisation and sform hold a position of basic importance. Recently on account of the growing need for ood and raw materials this importance has been brought home to all sections of the ommunity. While the several parts of the nation's economy are mutually inter-dependent and ley must all receive their proper share of attention from the economic planner, the success f the whole Plan will vitally depend on the results achieved in making the most advantageous se of the land and labour resources engaged in agriculture. In this sense the importance of .griculture is both basic and vital. Land Utilisation And Crop Pattern 2. The total geographical area of the country is 8n million acres, but land use statistics are available for only about 615 million acres which are as follows : Million acres 1 2. 3. 4. 5. Forests* Net area sown Current fallows Cultivable waste Not availablf for culivation total 93 266 58 98 96 615 ! Percentage to total 15 43 9 16 16 100

* The area under forests, for the Indian Union as a whole, including the non-reporting portion is estimated at 147 million acres. ! Includes 3.5 million acres for which details are not available. The bulk of the 196 million acres, for which land utilisation statistics are not available, consists of mountains, deserts and inaccessible forests. The cultivated area (items 2+3) comes to 324 million acres. About 35-5 million acres grow more than one crop. 3. Including the conventional estimates which have been framed for non-reporting areas in respect of foodgrains, the gross cropped area is about 317 million acres. Its break up by crops is given in the appendix to this chapter. The appendix shows that food crops cover about 78 per cent. ofth& cropped area, and commercial crops, which provide raw, material for industries, account for 17 per cent. Plantation crops and spices cover no more than l i per cent. of the area, though they not only occupy a position of great importance in the economy of the valleys in the north-east and the strip of territory along the southwest coast of India but also play a vital role in India's foreign trade. Trends In Land Use Pattern 4. Due to changes in coverage and methods of reporting it is difficult to obtain comparable data for the Indian Union as a whole over a sufficiently long period to indicate trends. A study of the data for some of

the principal States where only slight changes in coverage have occurred, was, therefore, undertaken over a period of about 40 years (ending 1946-47) which brings out the following trends :

i. ii.

iii.

The net area sown* has not increased appreciably except in Uttar Pradesh The area growing more than one crop has increased by about 20 per cent. and the total cropped area, therefore, shows some increase, which, however, lags far behind the rapidly increasing population. Irrigated area has increased by about 10% mainly through the extension of canals. It has been noticed that the area irrigated from minor irrigation works has remained almost static over this long period. It seems to indicate that the new constructions have at best kept pace with works going out of use for want of repairs or otherwise, e.g., through extension of canal irrigation. The area under current fallows remained at the level of 1919-20 till the early forties and thereafter showed some increase, particularly in the cotton growing tracts, possibly because of a sudden decrease m cotton area which was left partly fallow. Hyderabad is the only State which shows a continuous increase in fallows. In the opinion of a special committee set up by the Hyderabad Government the apparent increase in the area under fallows is somewhat of an exaggeration.

5. Another study of trends'in crop pattern was based on the data relating to the main growing areas of different crops. This indicates the following trends :

i. ii. iii. iv. v.

The area tinder food grains shows a small increase during the forties when the area under cotton declined. During the periods of the two world wars the acreage under cotton decreased. This trend was reversed in the post-war periods. Area under oil seeds, mostly groundnuts has steadily increased by about 4 million acres. A considerable increase of about a million acres has occurred in jute area since partition because of the intensive efforts made to fill the large gap created in the supply position after Partition. The area under sugarcane has increased by about a million acres. A steady increase, though small in extent, is noticed in the area under cane in Madras and Bombay.

6. The above trends bring out two main facts of the agricultural situation, namely that (;) although gross cropped area has increased as a result of double cropping, little new area has come under cultivation during the last four decades and ( changes in price structure do affect the pattern of crops even though a large part of the area is cultivated in tiny holdings. A part of the area of cultivable waste can be utilised for extension of cultivation and afforestation. Though much of it may be fragmented, there is a considerable area in sizeable blocks. On the abolition of zamindari most of it has been nationalised. Inspite of the increasing pressure of population, very little extension of cultivation to waste lands has taken place during the last 40 years. This seems to indicate that the available cultivable waste does not generally lend itself to reclamation within the present resources of the cultivators. Small areas may be added here and there, but for any schemes of materially increasing the area under cultivation, reclamation and rehabilitation work has to be undertaken on an organised scale. Only State efforts or State sponsored efforts can hope to do this. For making the best use of all available land a rapid survey to locate cultivable areas and classify them according to the measures necessary for their reclamation appears to be the first essential step. 7. In areas thus selected for agricultural development a major State effort at reclamation will be necessary. A primary necessity is of course to examine the schemes from all relevant technical and economic angles. Time, talent and money spent in this preliminary effort is an indispensable precaution and a profitable investment. Once the scheme is prepared, it may be put into effect through a public corporation or through a development board ; but when colonization or rehabilitation has commenced, the maximum possible scope should be given to co-operative action. While prospects of a significant increase in the area under cultivation are mostly connected with major schemes of development, no measure which is calculated to bring suitable land under profitable cultivation, even within the existing village settlements, should be neglected.

Yield Trends 8. Extension of cultivation can be an important factor in stepping up agricultural production over a period of time. For meeting the immediate needs of the nation, however, reliance has to be placed mainly on increasing production from the existing area by improving the yields. The official estimates framed on a comparable basis indicate that while the area under cereals during the three years ending 1949-50 compared to the period immediately preceding the war has not changed appreciably, there has been a decline in the yield per acre from 619 Ibs. to 565 Ibs. The yield estimates which are based on normal yield and condition factor suffer from the defect of being subjective and the reported fall may be ascribable in part to caution on the part of State Governments in reporting their suroluses and deficits from year to year for the, purposes: of the Basic Plan for food. Since 1944, a scientifically designed procedure for estimating production, based on the technique of random sampling and crop cutting experiments, has been introduced for some crops by the Indian Council of Agricultural Research. The estimates of production based on this technique are now available for 1949-50, 1950-51 and 1951-52, which indicate that while the official estimate for 1949-50 based on the standard yield and condition factor was slightly optimistic compared with the estimate based on the technique of random sampling, the official estimates for 1950-51 and 1951-52 were under-estimates by 6 to 7 per cent. as detailed below : Official Estimates. (ooo tons) 1949-50 1950-51 195I-52 46,018 41.786 41,264 Estimates based on random sample survey (ooo tons) 45.465 44,242 44,407 +1-2 5-5 7-I Percentage variation

These figures suggest that while during favourable seasons the official estimates may be somewhat overestimates, in bad seasons there is a distinct tendency to under-estimate production. 9. A study undertaken by the Ministry of Food and Agriculture to determine yield trends over the last 40 years indicates that in no State do all the crops show a consistent decline in yield. For commercial crops the data revealed clear evidence of generally increasing yields, and in respect of sugarcane an expansion of area as well. In respect of food crops also an expansion in area is perceptible in several cases as also an increase in the proportion of irrigated areas, but yield trends are not uniform ; yields show an increase for certain crops in certain States, a decline in certain others and absence of any perceptible change in the rest. Generally speaking, an expansion of area under a crop has been seen to be a factor associated with the lowering of yield rates, while an increase in the proportion of irrigated area has the opposite effect. In a few cases yield trends are difficult to explain on these grounds and these cases merit further examination. The study concludes that there is little ground for the belief that there has been a deterioration in soil fertility or in the standard of husbandry in recent years. 10. The study referred to above was also based on the official estimates, though for the States selected for the study the estimates of production were comparatively more reliable. The official estimates of average and total yields for individual years, were useful as guides for administrative action, particularly for food crops. It would not, however, be justifiable to place too great a reliance on them for purposes of comparison of yields as between different years as a measure of land fertility. The estimates based on sample surveys are available only for a few years and they do not cover all crops. On the basis of the data available to us, we would hesitate to arrive at any conclusion regarding yield trends. With a more extensive coverage and with an accumulation of data for several years these surveys will produce significant data on long term trends. In the interest of a planned agricultural policy, therefore, the adoption of the technique of random sample surveys for the preparation of official estimates of production in all States should get a high priority.

Availability And Requirements 11. CerealsWhile the population has increased by about 39 per cent. during the last four decades, the production of foodgrains has not kept pace with it. This indicates an appreciable decrease in per capita availability of foodgrains from internal sources. For more than three decades India has been getting a much larger quantity of grains (mainly rice) from Burma than what it was exporting to other countries. The separation of Burma in 1936 has reduced internal supplies by about i -3 million tons, and the Partition in 1947 by a further 0-77 million tons. Since 1948 we have been importing large quantities of foodgrains, 2-8 million tons in 1948, 3-7 million tons in 1949, 2-i million tons in 1950, and 4-7 million tons in 1951. 12. Defects in agricultural statistics introduce an element of uncertainty in estimating the overall deficit which has to be met. The existing gap between availability and requirements and that which may come to exist in 1956, if in the meantime, production does not increase may be seen from the following statement* : 1. 2. 3. 4 Estimated population (millions) Estimated adult equivalent population at 86% (millions). Production of cereals in 1949-50 (million tons) Quantity available for consumption in 1950 from internal supplies allowing for seed etc. at 12 % (million tons) Quantity available for consumption including imports and off-take from carry over stocks (million tons) Availability per adult, per day in 1950 (ounces) Requirements for consumption including seeds etc) in 1956 (million tons) (i) On the basis of 13 "71 ozs. per adult per day 51-82 (ii) On the basis of 14 or per adult per day 8 Deficit compared to production at the 1950 level (million tons) (1) On the basis of 13 71 oz. per adult per day .69 (ii) On the basis of 14 oz. per adult per day 7.'78 52.01 1950 1956 1950 1956 353-05 377.0 303. 62 324"74 45.13** 39 . 49

5-

42-40

6, 7

13 -71

To do away with imports and maintain consumption at the level of 1950, i.e., 13'71 ounces per adult per day, the additional quantity offoodgrains needed in 1956 will be 6-7 million tons. The requirements of cereals for a balanced diet have been laid down by the Nutrition Advisory Committee at 14 ozs. and to raise consumption to this level the additional quantity required is estimated at 7 8 million tons. These figures indicate the magnitude of the problem that lies ahead. 13. PulsesThe position regarding availability of pulses is no better. The production of gram and other pulses during 1950-51 is estimated at 8-4 million tons. After allowing about 20% for stock feeding and seed etc. the net quantity available for human consumption may be estimated at 6-7 million tons. This means an availability of2-i ounces per adult per day as against 3 ounces recommended by the Nutrition Advisory Committee for a balanced diet. At the level of 1951 availability the additional requirements of the increased population during 1955-56 will be 0-5 million tons and to obtain the nutritional standards the additional requirements will be 4 million tons.

14. Subsidiary FoodsThe principal subsidiary foods in use. in India are potatoes, tapioca and sweet potatoes. With their high yields per acre they have a special importance in a country deficit in foodgrains. Potatoes are consumed on a small scale as vegetables rather than as the staple diet because of their high price over a large part of the year. Lower ing their cost depends very largely on providing facilities for storage, dehydration and transport more cheaply than at present. Tapioca which is rich in starch forms an important article of diet in parts of Madras, Mysore and Travancore-Cochin. Though, by itself, it has a low nutritive value, it makes a good supplement to both rice and wheat. 15. Protective FoodsThe present availability of fruits and vegetables is estimated at i '5 and 1-3 ounces per adult per day respectively. The requirements of a balanced diet are, on the other hand, estimated at 3 ounces of fruits and 10 ounces of vegetables. The availability of milk is estimated at 5-5 per adult per day as against the nutritional requirements of 10 ounces. Similar figures for fish are 0-2 and 1-3 ounces. Little information is available regarding the availability of meat and eggs ; it is, however, known to be very low. Generally speaking, there is throughout the country too great dependence on foodgrains and insufficient consumption of protective foods. 16. SugarProduction of sugarcane during 1950-51 stood at 5-62 million {gur) tons and net availability for human consumption at I-62 ounces per adult per day as against the requirements of 2 ounces for a balanced diet. To raise consumption to this level during 1955-56, the additional quantity required is 2-2 million tons. 17. Oils and fatsProduction of the five major oil seeds for 1950-51 has been estimated at 5-1 million tons and the net availability in terms of oils at about I -69 million tons (including imports of 23 thousand tons of copra and cocoanut oil and allowing for exports of 168 thousand tons). Of this 118 thousand tons were utilised for the manufacture of soaps, paints and varnishes and as lubricants and the net quantity available for human consumption was thus i -57 million tons of oil. This marks an increase of about 35 per cent. over the pre-war triennium. Even so the availability per adult per day stands at 0-5 ounces only. The other important source of fat in the Indian diet is ghee and the per capita availability of ghee works out at no more than o i ounce per day. Including all the sources the per capita availability of oils and fats is far below what is considered necessary for nutrition. 18. CottonProduction of cotton during 1950-51 was officially estimated at 2-97 million bales of 392 Ibs. net each and consumption at 4-07 million bales. The gap between production and consumption was met largely by importing 0-83 million bales during the year. The requirements for 1956 have been estimated at 5-4 million bales and the gap between production and requirements may thus increase to about 2-4 million bales unless production is stepped up meanwhile. A part of the requirements of long staple cotton, which is not grown in India in sufficient quantities, has, however, to be imported for a long time to come. 19. JuteIn spite of the large expansion of the area under jute which has taken place during the last few years, the gap between availability and requirements is still wide. The official estimate of production during 1950-51 was 3-3 million bales of raw jute and 0-6 million bales of mestaan inferior type of substitute. The requirements for 1955-56 are estimated at 7-2 million bales. This indicates a gap of about 3'3 million bales between supply and requirements. Tea, Coffee And Rubber 20. Plantations of tea, coffee and rubber cover less than 0-4 per cent. of the cropped area, concentrated mainly in the valleys of the north-east and along the coast on the south-west of India. They provide employment to more than a million families and thus play a vital role in the economy of these regions. In addition, they earn for India about Rs. 80 crores of foreign exchange. Tea alone accounts for Rs. 78 crores. A remarkable fact about tea plantations is that while the area under tea has remained unchanged for over a decade under international agreements, production has increased by about 43 per cent. over this period. This incidentally brings out that where sufficient capital is invested, yields can be increased appreciably. Coffee and rubber, which used to be export commodities are now largely consumed within

the country. India actually imported about 12 million pounds of rubber during 1950-51. Rubber occupies a key position in industrial development and for defence. In view of the uncertainties of the international situation dependence on imports may be inadvisable. The bulk of the area under rubber is comprised of small holdings which are on the whole comparatively less efficiently managed than the tea and coffee plantations. The production has declined since 1945 because of a fall in the yields of old plantations and increased suspension of tapping due to unremunerative prices. Their rehabilitation demands immediate attention. The Development Committee for rubber plantations has formulated a fifteen-year plan for their rehabilitation and development and from this large increases in yield are expected. Condiments And Spices 21. In spite of phenomenal increases in prices little change in area under condiments and spices appears to have occurred. The area under black pepper, an important dollar earner which yielded Rs. 20 crores from exports of 15 thousand tons during 1950-51 as against an annual pre-war average of Rs. 3 lakhs, still stands at 1,98,992 acres and has recorded only a nominal increase. Official estimates of the areas under cardamom and lemon grass are not available ; trade estimates place the average areas in the neighbourhood of one lakh acres and twenty-seven thousand acres respectively. Cardamom yields Rs. 1.46 crores of foreign exchange. Cashew nuts, which bring another Rs. 8 to 9 crores of foreign exchange through exports, are largely imported, processed and then exported, the value of the imports being of the order of about Rs. 2-8 crores. The condiments and spices have acquired a position of great importance in the economy of the plains on the south-west coast of India. It is likely that the industry may have shortly to face competition from Indonesia and Malaya. Moreover, the high level of prices may not be maintained. A downward trend is already evident. This industry lacks the organisational advantages which are enjoyed by other plantation industries like tea, coffee, and rubber. Even the exports are generally not graded and this has often led to avoidable losses. The Government of India have recently set up a committee to examine the whole position in respect of these crops, and particularly the question of their production and marketing being brought under a single organisation. Approach To Agricultural Development 22. In this chapter we have attempted to state briefly the main features of the agricultural situation in India. The facts cited above may seem to suggest that the rural economy has been largely static. Some notable developments have, however, occurred over the past few decades. Large areas which suffered from repeated failures of rainfall have received irrigaton ; new crops have come to occupy a significant position in the country's production and trade ; the agricultural and the industrial economies in the country now exert a powerful influence on one another ; problems of rural indebtedness and the village moneylender exercise the administration and the people much less than they did fifteen or twenty years ago ; and finally, there is already in the countryside an awakening and a desire for raising standards of living. The even tenor of the agricultural economy was seriously disturbed as a result of the Partition ; but much adjustment has already taken place. In describing the state of the agricultural economy it was necessary to give special attention to the facts of agricultural production. An assessment of the state of production is, however, no more than a starting point for the consideration, of the conditions which determine agricultural development. This task is attempted in the chapters that follow.

23. The peasant's life constitutes an integrated whole and his problems interact lo such an extent that he does not see them in compartments. In the same way, in approaching agricultural development, the peasant's life and problems have to be viewed together, no doubt selecting the points at which special emphasis is needed, but aiming always at a comprehensive and many-sided effort to transform the peasant's outlook and environment. The end in view is the development of the human and material resources of the rural community. This is to be achieved in the main ^by enabling the rural people to solve their own problems and to organise themselves for co-operative action with a view to adapting new knowledge and new resources to their needs. Thus, while co-operation offers the basis of community action, it falls to the administrative machinery of the government and, in particular, to extension workers, to provide guidance and help to the villager.

24. A rigid social structure and unutilised resources have always characterised underdeveloped economies. To change the social pattern built round the ownership of land and to bring new resources and technology into every day operations become, therefore, central to the process of development. It is the purpose of planning to bring about rapid changes in such a way that the economy moves forward in a balanced, integrated manner, keeping in view at all times the major objectives of community development, increased production and equitable distribution. The succeeding chapters are concerned with various aspects of this central theme. In the discussion on land policy we set out the lines on which changes in the social structure might be brought about speedily to the greatest advantage of the country while, at the same time, strengthening the village community, eliminating differences in status and opportunity, and building the village into an organic unit in the structure of national planning. 25. The Five Year Plan envisages substantial increases in agricultural production for foodgrains as well as for commercial crops. The targets proposed in the Plan are to be realised through development programmes relating to major and minor irrigation works, extension of cultivation, reclamation and intensive farming based upon the application of the results of research. Considerable stress is laid on the conservation of existing resources, in particular, of forests and the soil. Diversification and expansion of the rural economy is sought through emphasis on the development of dairying and horticulture and through the growth of village industries, wherever possible, with the aid of power and improved tools. Land resources are to be supplemented by the resources of-sea and river and, therefore, the Plan provides for a new and extensive programme for the development of fisheries. As the rural economy has been largely starved of financial resources, a substantial programme for providing finance for agriculture has, therefore, been proposed. 26. Measures envisaged in the Plan* in the fields of industry, communications, and social services have considerable bearing on the growth of the rural economy, for they raise its economic potential, bring new resources into action and, above all, alter the milieu in which the peasant lives and works. Thus, although agricultural programmes lie at the very centre of the Five Year Plan, they have to be seen in the perspective of a larger plan that comprehends all aspects of national development.

2nd Five Year Plan

Chapter 13:

PROGRAMME FOR AGRICULTURE

The first five year plan accorded pride of place to programmes for agriculture and community development. This was a natural priority in a plan seeking to raise the standard of living of the mass of the people, specially in rural areas, but it was also justified in the special circumstances of shortage and inflation which existed when the plan was formulated. More than any other factor, the increase in agricultural production which has taken place since 1952-53 has helped to end inflation, stabilise the economy and prepare the way for a higher rate of development during the second five year plan. The index of agricultural production, with 1949-50 as base, stood at 96 in 1950-51. It stood at 114 in 1953-54 and 1954-55, and is expected to be 115 in 1955-56. During the first plan, the national product increased by 18 per cent, and income in the agricultural sector increased in the same proportion. Increase in agricultural production also stimulated growth in other sectors of the economy. Review of the First Plan 2. The first five year plan envisaged the following increases in agricultural production: Commodity Foodgrains Major oilseeds Sugarcane (gur) Cotton Jute Unit Million tons Production in base year* 54.0 5.1 5.6 Million bales 2.9 3.3 Targets of additional Percentage increase production 7.6 0.4 0.7 1.3 2.1 14 8 13 45 64

.Base year for foodgrains is 1949-50; for others 1950-51. These targets of additional production, especially of foodgrains, were worked out in terms of the contribution anticipated from different programmes such as irrigation, use of larger quantities of fertilisers, supply of improved seeds and programmes of land reclamation and development. In other words, it was reckoned that if the developmental measures which the plan provided for were taken the production potential would increase to the extent indicated. In given years the actual levels of production for different commodities would necessarily vary with weather conditions and other factors such as the relative prices for different crops. 3. The course of agricultural production during the first plan is shown in the following statement: Commodity Cereals Pulses Total foodgrains "Major oilseeds Sugarcane (gur) Unit Million tons 1951-52 42.9 8.3 51-2 4.9 6.1 1952-53 49.2 9.1 58.3 4.7 5.0 1953-54 58.3 10.4 68.7 5.3 4.4 1954-55 55.3 10.5 65.8 5.9 5.5 1955-56 Estimated 55.0 10.0 65.0 5.5 5.8

Cotton Jute

Million bales 3.1 4.7

32 4.6

3.9 3.1

4.3 2.9*

4.2 4.0

Partially revised estimate. It will be seen that during the period of the plan 1953-54 was the year of peak production for foodgrains and 1954-55 for oilseeds and cotton. In the case both of sugarcane and jute 1951-52 was the year of the highest production and although, after a period of decline, production improved towards the end of the plan, the targets which were set were not realised. 4. These trends emerge more clearly from the following statement which sets out the index numbers of agricultural production during the period of the plan for various groups of crops: (Base: 1949-50=100) Weight L foodgrains Cereals Pulses Tbtal foodgrains n. Non-foodgrains Oilseeds Cotton Jute Miscellaneous Sugarcane Other crops including plantation crops Total non-foodgrains All commodities 9.9 2.8 1.4 8.7 10.0 33.1 100.0 97 119 151 123 105 111 98 92 121 149 102 107 104 102 107 153 101 90 105 106 114 115 166 102 112 111 777 114 108 162 136 118 125 122 115 58.3 8.6 66.9 91 90 91 101 99 101 119 112 118 112 113 112 112 108 777 1951-52 1952-53 1953-54 1954-55 1955-56 Estimated

It is significant that the overall index of agricultural production has been maintained at a fairly high level during the past three years. This has been accompanied by some decline in foodgrains which account for about 67 per cent. of the total value of agricultural production. Trends have to be studied over a longer period before firm conclusions can be established. 5. The fact that agriculture depends on several unpredictable factors and agricultural targets must necessarily be in the nature of a tentative approach is illustrated by the actual statistics of increase in the production of individual foodgrains: (million tons.) 1949-50 Rice Wheat 23-2 67 1950-51 20.3 6.4 1951-52 21.0 6.1 1952-53 22.5 7.4 1953-54 27.8 7.9 1954-55 24.2 8.5 1955-56 Estimated 25.5 8.5

Millets (jowar and 8.5 Bajra) Other cereals Total cereals Gram and pulses Total foodgrains 8.0 46.0 8.0 54.0

8.0 7.0 41.7 8.3 50.0

8.3 7.5 42.9 8.3 51.2

10.4 8.9 49.2 9.1 58.3

12.4 10.2 58.3 10.4 68.7

12.6 10.0 55,3 10.5 65.8

12.0 9.0 55.0 10.0 65.0

Of the increase of 7.6 million tons anticipated over the first five year plan it was thought that roughly rice might account for 4 million tons, wheat for 2 million tons, gram and pulses for a million tons and other cereals for 0.5 million tons. The largest increase has occurred in millets and other cereals and the target for wheat production has been realised. On the whole, the expectation in respect of rice has not been fulfilled except in one specially favourable year. Nevertheless, the increase in food production made possible a reduction in imports from the level of 4.73 million tons in 1950 and 3.86 million tons in 1951 to less than a million tons during each of the past two years. This was a distinct advantage to the general economy of the country. 6. With the data available it would not be correct to attempt to relate too closely the progress of production in individual agricultural commodities to the actual progress made from year to year in implementing the programmes of the first five year plan. In the nature of things many factors operate at the same time. It is proposed that the data vearing on agricultural production, during the first five year plan, including the results of crop cutting surveys, should be investigated through a number of intensive and specially designed studies. Among the aspects on which more objective knowledge would be of considerable value in the making of policy and in assessing results, the following may be specially mentioned:

1. 2. 3. 4. 5. 6.

production trends in different regions, effects of agricultural production and extension programmes, range of influence of favourable and unfavourable conditions, review of yardsticks of additional production at present in use, yield trends for the principal crops, and cost of various agricultural production and extension measures in relation to the benefits realised.

7. From the limited information available it appears that among programmes of development which have contributed to increase in agricultural production during the first plan, -minor irrigation works, increased use of fertilisers, land reclamation and development and the extension of area under cultivation have been specially significant Minor irrigation programmes were being undertaken for several years before the plan. During the period 1943-44 to 1950-51 programmes of the value of about Rs. 62 crores were approved in pursuance of the grow-more-food campaign and a major portion of these were devoted to minor irrigation. During the first plan about 10 million acres of land are expected to have been brought under irrigation from minor works and about 6.3 million acres from large and medium irrigation schemes. More than half the increase in the area benefiting from minor irrigation occurred during the first two years of the plan. Considerable progress has been made in several States, notably, in Bihar, Uttar Pradesh, West Bengal, Punjab, Assam, Bombay, Madras and Mysore. The benefits of irrigation are realised to a greater extent when combined with the use of fertilisers. During the plan period the consumption of ammonium sulphate has more than doubled, from 275,000 tons before the plan began to 610,000 tons four years later. Special attention has been devoted to spreading the use of the 'Japanese method' of rice cultivation, the area brought within its scope so far being about 1.6 million acres. 8. During the first four years of the first five year plan more than one million acres of land were reclaimed through the Central Tractor Organisation and 1.4 million acres through State tractor organisations. Besides this, about 5 million acres have been developed by cultivators through programmes such as

assistance for mechanised cultivation, bunding and levelling and reclamation of land by manual labour. The extension of cultivation has been a larger contributory factor towards increase in production than had been anticipated when the plan was drawn up. Thus, the total cropped area has increased from 326 million acres before the plan to 352 million acres in 1954-55. The area under food crops has risen from 257 million to 272 million acres and under commercial crops from 49 million to about 60 million acres. The area under commercial crops has increased from 15 per cent of the total cropped area to 17 per cent, while the area under food crops has diminished from 79 to 77 per cent of the cropped area. The area under other crops (20 million acres) has shown little change. Approach In The Second Plan 9. During the first five year plan it was of crucial importance that agricultural programmes must succeed, for no other consideration had equal significance for the stability of the economy as a whole. In the" second five year plan agricultural programmes are intended to provide adequate food to support the increased population and the raw materials needed for a growing industrial economy and also to make available larger exportable surpluses of agricultural commodities. The second five year plan implies, therefore, even more than the first a close inter-dependence between agricultural and industrial development While formulating programmes to achieve these objects, it is necessary to take a long-term view so as to secure the best possible use of material and human resources, ensure balanced development between different branches of agriculture and create conditions for an appreciable increase in rural incomes and standards of living. In framing agricultural programmes it is essential, from the national point of view, to place before the villagers a goal which they should strive to attain. In connection with the preparation of the second five year plan it was stated that this goal should be the doubling, within a period of about ten years, of agricultural production, including food crops, oil-seeds, cotton, sugar cane, plantation and other crops, animal husbandry products, etc. 10. In relation to the food problem the factors to be considered are: (1) increase in the total population, (2) increase in- the urban population, (3) the need to improve per capita consumption, (4) the need to counter possibilities of inflationary pressures resulting from the implementation of the second five year plan, and (5) effects on food consumption of increase in national income and changes in its distribution. The total food requirements in 1960-61 at the present rate of consumption will be 70.5 million tons. By the end of the second plan the rate of consumption is estimated to rise to 18.3 ounces per adult (cereals 15.5 ounces and gram and pulses 2.8 ounces), so that the total food requirements will be 75 million tons. The plan provides for increase in food production of 10 million tons over the next five years. In terms of calories the per adult consumption of food per day, which at present amounts to 2200, is expected to increase by 1960-61 to 2450 as against the minimum of 3000 calories recommended by nutrition experts. 11. Compared to many other countries the rate of cereal consumption in India is relatively high. This is because such energy producing foods as milk and milk products, fruit and vegetables, eggs, fish and meat are far from adequately represented in the common diet. Apart from the question of correct food habits, which is undoubtedly a matter of extreme importance, the output of each of these supplementary foods is at present grossly insufficient. During the second five year plan the aim will be to diversify agricultural production and to shift somewhat the emphasis which has been hitherto placed in a dominant degree on the production of cereal crops. The second plan also provides for programmes for increasing the production of crops like arecanut, coconut, lac, black pepper, cashewnut etc. which did not receive sufficient attention during the first plan. 12. The scope for increasing the area under cultivation is extremely limited. Such increase as may take place in the area under cultivation is likely to increase the production mainly of the coarser grains. As national income increases, there may be a general tendency for demand to shift from the coarser to the superior grains, especially to rice, wheat and maize. In the circumstances, the main source of increase in agricultural production must be increase in yields from more intensive, more efficient and more profitable agricultural production. Although the available data are not always comparable, there is little doubt that the average yields of principal crops like wheat and rice in India are considerably smaller than those current in several other countries. The crop cutting experiments which have been conducted in recent

years in different parts of the country show large variations in the average yields of crops between different regions and even within each region. Crop competitions which have been carried on for some time past also afford an indication of levels which can be attained in Indian conditions when the necessary effort and assistance are forthcoming. It is now within the bounds of practical action to bring about a rapid and fairly widespread increase in agricultural yields. This requires more detailed and systematic planning in terms of regions. States, districts and project areas such as has not yet been undertaken. Data derived from crop competitions should be widely publicised, so that each area can set its goals in the light of established facts. To the extent necessary, the scope of crop competitions should be widened. What is require'd is not merely the encouragement of high levels of achievement on the part of individual farmers, but a more comprehensive effort which would raise the general average in each area. Every part of fhe country should have targets of average production for different crops based on a broad classification of physical conditions of irrigation, rainfall, terrain, etc. In pursuance of these targets there should be programmes for raising levels of productivity which go down to individual villages and individual families. 13. Despite the uncertainties to which agriculture is necessarily subject, it is important that a more studied effort to introduce a planned approach to agricultural development should be made. The main elements in agricultural planning are:

1. 2. 3. 4.

planning of land use; determination of targets, both long-term and short-term; linking up of development programmes and Government assistance to production targets and the land use plan, including allocation of fertilisers etc. according to plan; and an appropriate price policy.

Each district and, in particular, each national extension and community development project area should have a carefully worked out agricultural plan. This should indicate for villages the targets to be aimed at, the broad distribution of land between different uses and the programme of development. Within the framework of an overall price policy such as has been outlined in an earlier chapter, such local plans will be valuable steps leading to more careful planning for States and regions and for the country as a whole. The crop pattern envisaged by these local plans has in the main to be influenced through such incentives as the provision of irrigation, credit and marketing facilities, provision of fertilisers, and intimate contact with the cultivator on the part of extension workers and especially the village level workers. 14. With the objectives set forth above, the following pattern of outlay for development in the rural sector proposed for the second five year plan: Agriculture and Community Development Head of Development l. 2. 3. 4. 5. 6. (a) Agricultural programmes: Agriculture Animal Husbandry Forests & Soil Conservation . Fisheries Cooperation including warehousing and marketing Miscellaneous total First Plan Rs. crores 196 22 10 4 7 1 240 per cent 81.7 92 42 1.6 2.9. 0.4 100.0 Second Plan Rs. crores 170 56 47 12 47 9 341 per cent 49.9 16.4 13.8 3.5 13.8 2.6 100.0

(b) National Extension and Community 90 projects (c) Other programmes: 1 2. Local Development Works total 11 15 116 356

77.6

200

88.1

9.5 12.9 100

12 15 227 568

5.3 6.6 100

The principal targets of agricultural productionfor the second five year plan are set out in the following statement: Commodity Unit Estimated production in 1955-56 65.0 5.5 5.8 4.2 4.0 1.3 22.0 12.0 2.5 6.0 20.0 56.0 Target of additional production 10.0 1.5 1.3 1.3 1.0 0.8 5.0 4.0 Estimated production in 1960-61 75.0 7,0 7.1 5.5 5.0 2.1 27.0 16.0 2.5 32.0 80.0 700.0 23 33 9 Percentage increase 15 27 22 31 25 62 23 33

Foodgrains Oilseeds Sugarcane (gur) Cotton Jute Coconut (oil) Arecanut Lac Tobacco Black Pepper Cashewnut Tea

million tons million tons million tons million bales million bales lakh tons lakh maunds lakh maunds lakh tons

thousand tons 26.0 thousand tons 60.0 million pounds 644.0

The index numbers represented by these targets are given below: (base 1949-50): 1950-51 Foodgrains Oil seeds Sugarcane (gur) Cotton 91 99 114 106 1955-56 111 108 118 162 1960-61 129 137 144 213 Jute Other crops including plantation crops Total non-foodgrains All commodities 105 106 96 125 122 115 136 148 135 109 136 194

These targets are in the nature of first estimates derived from calculations of the production potential expected to be added as a result of various developmental programmes. In view of the considerations outlined in paragraph 10 and especially the need to provide adequate safeguards against possibilities of inflation, it is considered that it is both necessary and possible to achieve higher agricultural targets with relatively small adjustments in regard to resources. In particular, through the national extension service it must be the aim to reach every village and" every family and to organise supplies and services and short, medium and long-term finance required for achieving these targets. With a view to fixing higher targets and ensuring their realisation, the Planning Commission and the Ministry of Food and Agriculture propose to undertake further study of agricultural programmes in each State and region with reference to its crop pattern, land and water resources and programmes of development in irrigation, national extension and other fields.

16. Foodgrains.T1ie target for foodgrains has already been referred to earlier. It is expected that of the increase of 10 million tons in foodgrains, rice may account for 3 to 4 million tons, wheat for 2 to 3 million tons, other cereals for 2 to 3 million tons and pulses for about 1.5 to 2 million tons. 17. Cotton.To fulfil the textile targets for the second five year plan, the production of raw cotton has to be.raised from 4.2 million bales in 1955-56 to 5.5 million bales in 1960-61. Programmes for the cotton development will continue the measures undertaken during the first five year plan such as provision of hybrid seed, multiplication and distribution of improved seed, grant of loans to cultivators for the purchase of seed and fertiliser and extension and propaganda among the cotton cultivators. Ah important feature of development under the second plan will be the emphasis on increasing the production of long staple varieties particularly in the areas brought under major irrigation projects. The achievements made so far in increasing the production of long staple varieties have been significant and the proportion of these varieties had gone up from 17.5 per cent in 1948-49 to about 37 per cent in 1954-55. 18. Jute. Before Partition, India had a virtual monopoly in the production and supply of raw jute, jute being always one of India's principle foreign exchange earners. After Partition only about 19 per cent of the total production of raw jute of undivided India came to the share of the Indian Union. While there has been substantial improvement in the production of jute from 1.7 million bales in 1947-48 to about 4 million bales in. 1955-56, much of the additional jute produced in the country during the last few years was grown on marginal lands and was of poor quality, which consequently fetched low prices. The emphasis in the programme for jute production has to be changed from quantity to quality and new jute cultivation has to be undertaken in areas suitable for growing high quality jute. The requirements of the industry for raw jute may be placed at 7.2 million bales if all the mills were to work to full capacity. In addition about 150,000 bales may be treated as extra-factory consumption. It is therefore proposed to provide 5 million bales from internal production and to import the balance. It should be possible to produce the additional quantity of 1 million bales of jute largely through intensive cultivation measures with the ultimate objective of achieving an average yield of 3 bales per acre of good quality jute. The measures proposed in the second plan include the continuation on an expanded basis of the existing jute extension schemes, setting up of seed farms, supply of improved seeds, distribution of seed drills, construction of retting tanks etc. The organization of an extension service for demonstration of improved cultural practices is an important item in the jute developmental programme. 19. Oil seeds.Oilseeds and vegetable oils besides constituting a source of fat supply in 'the diet of the population are valuable export commodities. The production of the five major oilseedsgroundnut, sesamum, linseed, rape and mustard and castor seed is expected to go up from 5.1 million tons in 195051 to about 5.5 million tons in 1955-56 which was the target fixed under the first plan. Under the second five year plan, it is proposed to increase the production of the five major oilseeds to 7 million tons as shown below: Clath tons'* Groundnuts Sesamum Linseed Rape & mustard Castor total 47.00 6.51 4.28 10.60 1.61 70.0

Schemes for the production and distribution of good quality seeds sponsored by the Indian Central Oilseeds Committee during the first plan period have given promising results. It is proposed to popularise these improved seeds on an intensive scale during the second plan. Other schemes included in the plans of states cover application of fertilisers and manures, control of pests and diseases and research for evolving better and new varieties. Arrangements will also be made for improved marketing of oilseeds.

20. In considering the effect of the target of additional oilseeds production on increasing the supply of vegetable fats and vegetable oils, account has to be taken of the production of the other important edible oil, namely, coconut oil, the quantities proposed to be exported, industrial consumption etc. The following table gives the position in respect of the five prin cipal oils as also cotton seed and coconut oils. (Thousand tons of oil) Estimated 1954-55 Total production For edible uses For vanaspati manufacture For industrial purposes Exports 1760 1139 259 224 138 Estimated 1960-61 2114 1192 430 278 214

This assumes an export target of 5 lakh tons of groundnut and 2 lakh tons of other oils (in terms of seed). Emphasis will also be placed on stepping up the production and export of cotton seed oil and oils from solvent extraction process. '21. Sugarcane.The consumption of sugar and gur has increased steadily during recent years; In 195051 under conditions of control about 10.7 lakh tons of sugar were consumed. The amount consumed in 1954-55 was about 17 lakh tons. Under the second plan, it is proposed to raise the production of crystal sugar to 22.5 lakh tons and the installed capacity to 25 lakh tons at the end of 1960-61. In order to make available to sugar factories increased quantities. of cane and also to provide for higher gur consumption, additional production of 13 lakh tons ofsugarcane in terms of gur, is aimed at This will raise the total production from 5.8 million tons expected in 1955-56 to 7 :1 million tons in 1960-61, the amount available per adult being 1 : 72 ozs. per day. Schemes for the intensive cultivation of sugarcane include provision of irrigation facilities, establishment of seed nurseries, distribution of disease free and improved varieties of seeds, distribution of manures and fertilisers, control of pests and diseases, organisation of demonstrations and crop competitions. The main emphasis will be on increasing the sucrose content of the cane and ensuring maximum supplies of cane during the crushing season. 22. Coconuts.India is the second largest coconut. growing country in the world, producing as she does about 3800 million nuts a year. Still the country is deficit to the tune of 40,000 tons in terms of coconut oil. This deficit is expected to go up to 80,000 tons in 1960-61 after allowing for the increased population and possible rise in consumption standards. By undertaking both short-term as well as long-term measures, it is proposed to increase the production of coconuts to 210,000 tons in terms of oil by 1960-61 as against 130,000 tons at present. The short-term programme includes the setting up of demonstration centres to propagate improved methods of coconut cultivation including protection of the crop against pests and diseases. Under the long-term programme the area under coconut will be increased by bringing suitable waste lands, development of nurseries for the distribution of superior varieties of plants etc. It is also planned to increase the yield of coconuts from 30 to 45 nuts per tree. 23. Arecanuts.As in the case of coconut, the country is also deficit in the supply ofarecanuts, the existing production being 81,000 tons, as compared to the requirements of 118,000 tons at present. After allowing for the increase in population and also a slightly higher rate of consumption at the end of 196061, the requirements may be placed at 129,000 tons. But as the arecanut tree takes eight to ten years to bear fruit, extension of area under the crop will yield results only during the third plan period. However, it is proposed to increase the production of arecanut by about 25 per cent through intensive methods of cultivation and by prevention of pests and diseases, supply of quality seedlings, introduction of improved cultural practices etc. Efforts will be directed towards increasing the yield per acre from an average of 658 Ibs. to 820 Ibs. The target of production at the end of 1960-61 may be placed at 99,000 tons. The Indian Central Arecanut Committee has already carried out a survey of waste lands suitable for growing

arecanuts and it is intended to investigate and exploit these possibilities fully in the course of the-second plan. 24. Lac.Lac is the raw material for shellac and seed lac which are important items of export trade. The production of lac during the last few years has varied between 37,000 to 48,000 tons, the expected production in 1955-56 being of the order of 44,000 tons. In formulating the target of additional production, the possibilities of export demand for the commodity as well as competition from lac and from artificial substitutes produced abroad has to be kept in view. The second five year plan aims at stepping up production to 59,000 tons. Emphasis will also be given to the improvement of quality. These objectives are to be attained mainly through the establishment of regional brood farms in different areas, survey of idle host plant and imparting technical knowledge on lac cultivation. It is proposed to organise a lac extension service in important lac growing areas. In addition, it is also proposed to establish airconditioned and ordinary godowns for storage of stick lac at important marketing centres. 25. TobaccoNext to U.S.A. and China, India is the largest tobacco producing country in the world. In 1954-55, 250,000 tons of tobacco were produced. The problem which faces tobacco cultivation is not so much of expansion of production as improvement in quality. Due to unfavourable weather conditions, a large proportion of the crop during recent years turned out to be of low grade varieties and it was found difficult to sell it This resulted in the accumulation of stocks and consequent fall in prices. Improvement of quality will be given the highest priority in the programme for the second five year plan, and increase in production as such is not envisaged. 26. Black Pepper.Black pepper is an important dollar earner and has also considerable local importance in Travancore-Cochin, Malabar and South Kanara. In recent years, however, India has been facing increasing competition from other countries. The lines on which pepper development and research should be organized have been recommended by a special committee. The scheme was started in 195455 and is proposed to be intensified during the second five year plan. The objective under the plan is to raise the area under pepper cultivation by about 50,000 acres and to increase production from 26,000 tons to 32,000 tons. 27. Cashew-nut.Cashew-nut is another important dollar earner. The annual production is about 60,000 tons, the main producing areas being Madras and Travancore-Cochin. Although cashew-nuts are collected on a commercial scale in a few other countries, notably East Africa, the processing of cashew is practically the monopoly of India. In view of the growing competition for the processing of cashew-nuts there is great need for developing the production of cashew-nuts in this country. The Spices Enquiry Committee suggested that the cultivation of cashew-nuts should be undertaken on a plantation basis in the east coast districts of Madras, coastal districts of Konkan and certain other areas on the west coast. Plantations should be encouraged around processing factories. There is also scope for extending cashew-nut cultivation in Madhya Bharat, Mysore, Coorg, Andhra, Orissa/West Bengal and Andamans. It is proposed to increase the production of cashew-nut from 60,000 tons to 80,000 tons by the end of 196061. 28. Tea, Coffee and Rubber.Production and other programmes for tea, coffee and rubber are at present being considered by the Plantations Enquiry Commission. Between 1950 and 1954 tea production has varied from 613 to 644 million pounds and exports from 427 to 470 million pounds. On the whole, it appears that it should be possible to achieve a production target of 700 million pounds and an export target of about 470 to 500 million pounds by the end of the plan. The Coffee Board is engaged in examining a fifteen year development plan for increasing the production of coffee, from 25,000 tons to 48,000 tons. Of the increase about 10,000 tons are proposed to be secured from intensive cultivation and rehabilitation of existing estates and 13,000 tons from reclamation and fresh plantings. A scheme drawn up by the Rubber Board for replanting 70,000 acres of area under rubber at the rate of 7,000 acres a year over a period of 10 years and for bringing 10,000 acres of new land under rubber at 2,000 acres a year is under the consideration of the Ministry of Commerce and Industry. For tea, coffee and rubber, firm development programmes have yet to be approved.

Development Programmes 29. It has been explained earlier that it is difficult to establish any precise correlation between the level of agricultural production and the extent of implementation of development programmes which are initiated under a plan. Such trends can be seen in perspective only after a period. It is even more difficult to attempt to relate the production of one set of crops such as foodgrains to developmental programmes which may be undertaken or to distinguish separately the influence which these programmes may have on the production of various groups of crops. Nevertheless, as in the first five year plan, an attempt has been made to examine the possible sources of increase in production potential, especially in the context of food-grains. The" increase of 10 million tons mentioned earlier is broadly ascribed to the following development programmes: (million tons) Major irrigation Minor irrigation Fertilisers and manures Improved seeds Land reclamation and land development General improvements in agricultural practices total 2.4 1.8 2.5 1.0 0.8 1.5 10.0

Although, over a series of years rough yardsticks for increase in food production arising from irrigation or the use of fertilisers or other factors have been evolved, these are no more than a rough approach. Elaborate studies are needed before the effects of different programmes can be isolated and such measures devised as will permit reasonably accurate calculations even under normal weather conditions of anticipated increases in production. Programmes such as irrigation, fertilisers and improved agricultural practices have necessarily an interacting character and are interdependent. Moreover, as the farmer takes to improved agricultural practices and his knowledge of means available to him for influencing his environment increases and local communities become better organised, for action the effects on production from areas already under irrigation are likely to be substantial. 30. During the second five year plan 21 million acres of land are expected to receive irrigation, 12 million acres from large and medium irrigation schemes and 9 million acres from minor irrigation works. The provision for minor irrigation is made in part in the agricultural programmes of States and in almost equal part in the national extension and community development programmes. The former includes also provision for about a million acres of land to be irrigated from State tubewell schemes. Over 3500 production tubewells are expected to be constructed in the various States. So far tubewells have been concentrated in the states of Uttar Pradesh, Bihar, Punjab and Pepsu. During the second Plan, the tubewell programme will be extended to new areas which are already being investigated for availability of underground water under an exploratory tubewell project. For the successful implementation of the minor irrigation programme it is essential that there should be close coordination in the States between the agricultural department and district development staff incharge of national extension and community projects. In each State and district the programme of minor irrigation works and the irrigation targets to be achieved should be drawn up jointly between these two agencies. Systematic surveys are needed with a view to locating suitable minor irrigation works. During the past decade in each area many works which were long thought to be necessary and feasible have been taken up and fresh investigations are now required. A survey of water resources in Madhya Pradesh, Hyderabad and the eastern parts of Bombay State which are liable to scarcity conditions has been recently initiated by the Ministry of Food and Agriculture. Another aspect which calls for renewed attention is that while new minor irrigation works are being constructed a proportion of old works are falling into disuse. It is suggested that State Governments should review existing arrangements for the maintenance of minor irrigation works and, where necessary,

they should enact new legislation placing adequate responsibility on village communities so that, if there is failure in maintaining works, repairs can' be undertaken and the cost recovered from the communities concerned. Panchayat legislation in several States contains provisions for the levy of labour contributions. Such contributions should be utilised for the maintenance of local irrigation works. 31. The consumption of nitrogenous fertilisers is proposed to be raised during the second plan from 610,000 tons in 1955 to over 1.8 million tons. The consumption of phosphatic fertilisers is also proposed to be stepped up. The utilisation of sewage and town composts has been provided for in the plan. In all areas special attention should also be given to green manuring and the use of oil cakes and other manures. The procurement and distribution of chemical fertilisers on a greatly expanded scale during the second five year plan raises the question of strengthening the existing administrative arrangements both at the Centre and in the States. Since 1944 the Central Government have operated a trading scheme known as the central fertiliser pool. The work of the pool consists in ascertaining the requirements of States and of consumers such as tea and coffee plantations, procurement of the quantities needed, fixation of prices and making the necessary arrangement for the distribution of fertilisers. Distribution within States- is undertaken by State Governments through Government sale depots, private distributing agencies and cooperative organisations, the detailed arrangements varying considerably in different States. As new chemical fertilisers are being brought-into use and manurial trials are being carried out in the country, it is of the greatest importance that information regarding the use of fertilisers should be made available on the widest possible scale and cultivators should receive adequate guidance and assistance. The number of depots where fertilisers can be purchased needs to be considerably increased. It is also necessary that adequate buffer stocks should be maintained so that uninterrupted supplies are assured. Finally, cooperative societies should be increasingly used as the main agency for distribution at the village level. 32. Plans of States provide for about 3,000 seed multiplication farms with a total area of about 93,000 acres. In general every national extention service block will be served by a seed farm and a seed store. Seed produced at local farms will be issued to cultivators after passing through one or more stages of further multiplication at farms belonging to registered seed growers. The seed multiplication and distribution programme is to be developed so as to be able to meet the full requirements of national extension areas. Seed testing stations are also to be setup with a view to ensuring and enforcing quality standards for certain categories of seeds, especially for vegetable production. Programmes for setting up cooperative seed stores have also been drawn up by several States. The area under the Japanese method of paddy cultivation is to be increased during the plan period from 1.6 to 4 million acres. 33. During the second plan it is proposed to reclaim 1.5 million acres of land and to carry out land improvement measures over an area of 2 million acres through the Central and State tractor organisations and other agencies and through manual labour of individual cultivators. According to the provisional programme which has been drawn up, the Central Tractor Organisation will undertake during the next two years the reclamation of about 96,000 acres of fallow and jungle land and the ploughing up of about 149,000 acres of land which has been previously cultivated. A tractor training centre has already been established in Bhopal and it is proposed to establish one more centre in order to provide opportunities for training for tractor mechanics and drivers. The plan provides for the establishment of a tractor testing station which will examine the suitability of all.types of tractors under Indian conditions and will also test diesel engines and pumping sets. 34. In extension work in the States the contribution of dry farming techniques has not yet received sufficient attention. Despite the scale on which irrigation programmes are being undertaken, a large proportion of lands will continue to be rainfed. The importance of the widespread adoption of the best dry farming methods cannot therefore be too much stressed. In particular, both for the conservation of water and of soil, in extension and community project areas contour bunding should be specially encouraged. While in certain parts of the country it is necessary to provide for mechanical equipment, as a general rule, contour bunding can be undertaken by local labour with some assistance and guidance from trained agricultural personnel. The States of Bombay, Saurashtra, Hyderabad, Madhya Pradesh, Vindhya Pradesh, Bhopal and Uttar Pradesh have large scale programmes for contour bunding. Among

themselves they aim at carrying out contour bunding operations on more than 1.5 million acres during the plan period. In several States the value of consolidation of holdings in dry areas is not being fully appreciated. In areas where minor irrigation works such as wells can be undertaken, the benefits of consolidation of holdings are undoubtedly larger, but they are quite considerable even under dry farming conditions. The subject has been dealt with more fully in the Chapter on Land Reform and Agrarian Reorganisation. 35. In the field of plant protection government agencies have done valuable work especially in locust control. Greater attention should however be given to the education of the farmer in protecting his crops from pesis and diseases. Similarly, agricultural departments in the States should devote more continuous study to the question of evolving suitable types of bullock-drawn agricultural implements. Under the plan plant protection activities both of the Central and State Governments are to be intensified. Plant quarantine stations will be set up at the principal sea ports and air ports. Four centres for plant protection equipment were established under the first five year plan. These are to be strengthened and ten new centres are to be set up. A field centre for locust investigations will also be established. Provision has been made by the Ministry of Food ' and Agriculture for a scheme for designing and introducing improved types of agricultural implements. Such work has been undertaken in the past at several centres in the country and needs to be developed more rapidly during the second five year plan. Provision has also been made by several states for making improved agricultural implements available to farmers at reasonable rates. In western countries agricultural journals, pamphlets and other literature have made a considerable contribution to the development of improved agricultural practices. The Indian Council of Agricultural Research has taken steps in this direction and the plan of the Ministry of Food & Agriculture provides for further measures. This again is an activity to which agricultural and extension officials and other agencies in the States should give a high priority. Horticulture 36. While programmes for animal husbandry, dairying and milk supply and forests and soil conservation are explained at some length in later chapters, a word "may be said here regarding steps proposed for developing the cultivation of fruit and vegetables during the second five yearplan. At present levels of production the availability of fruit and vegetables is reckoned respectively at about 1.5 and 1 ounce per head. Increase in the production of fruit and vegetables is essential both for increasing the supply of protective foods and for bringing about greater diversity in agricultural production. The plan provides Rs. 8 crores for horticultural development. Long-term loans are to be given to farmers for establishing new orchards and short-term credit is to be provided for rejuvenating existing orchards. New nurseries are also to be set up. Provision has also been made for the training of mails and for strengthening the horticultural staff in the States. The plans of States envisage rejuvenation of about 500,000 acres of existing orchards and about 200,000 acres of new orchards lands. Production of vegetables is to be encouraged, especially in the neighbourhood of towns by supplying seeds and seedlings of quality on credit and making technical guidance available to the vegetable growers. State plans also provide for the multiplication of nucleus potato seeds. Special attention is to be given to the organisation of marketing cooperatives for fruit and vegetable growers. For developing fruit and vegetable preservation, assisting the canning industry and setting up cold storage plants, the Ministry of Food and Agriculture has provided a sum ofRs. 1.75 crores. It is proposed to increase the annual production of canned fruit and vegetable from 20,000 tons to 50,000 tons. Measures for encouraging the export of preserved fruit and vegetable products are also envisaged in the plan, and it is expected that exports will increase from 1,000 tons to 11,000 tons by the end of plan. expected to be established. State Governments are to be assisted in strengthening their existing research laboratories and farms. Agricultural Research And Education

37. In the more advanced national extension and community project areas farmers have readily accepted the results of research which have been communicated to them and have asked for more. This demand for solutions to problems old and new is likely to develop more rapidly during the Second Five Year Plan and agricultural departments and institutions have to prepare themselves to meet it. For many years past the Indian Council of Agricultural Research and institutions associated with it have been engaged in investigations of individual problems. There has been a lag in the application of the results of research and research workers have not drawn their problems sufficiently from the daily experience and needs of the farmer. During the Second Five. Year Plan, it is proposed to give close attention to the complex of problems which links research with development and also to continue work on fundamental problems. These are tasks to be carried ouHn cooperation between the Central and State Governments and the Indian Council of Agricultural Research and Agricultural colleges and other institutions in the States. Some problems relating to the organisation of agricultural research and education have been recently reviewed by a joint team of Indian and American experts. 38. The plan provides about Rs. 14.15 crores for agricultural research, 4.65 crores through the Central Commodity Committees and Rs. 9.50 crores in the programme of the Ministry of Food and Agriculture. State plans have a large number of research schemes which will be assisted on a matching basis by the Indian Council of Agricultural Research. The Council has sponsored a number of important investigations which will be continued during the second plan. These include breeding of rust resisting wheat, manurial experiments on fields of cultivators with a view to preparing manurial schedules and trials on cultivators, fields with new kinds of fertiliser. Agronomic experiments which have been carried out at 18 centres according to a scheme sponsored under the Indo-US Technical Cooperation Programme will be extended to 16 more centres. A scheme for investigating the methods of control by hormonal weedicides, which was begun during the first Five Year Plan, will be extended. Four research-cuw-testing centres for bullock drawn agricultural implements are to be established. To test the quality of improved seeds In regard to germination and extent of contamination by weed seeds, 11 testing centres are. 39. The Indian Agricultural Research Institute, the Central Potato Research Institute, the Central Rice Research Institute and the Sugarcane Breeding Institute have drawn up programmes of basic research for the second five year plan. During the first plan the Indian Agricultural Research Institute has carried out investigations on soil fertility, fertiliser use and wheat rust control, resulting in the evolution of varieties of wheat resistant to rust Its research organisation and programme have been recently reviewed by an expert committee which has recommended strengthening of various departments. New lines of investigations such as soil mapping, rapid soil tests, testing and certification of insecticides, storage pests, appraisal of losses due to plant disease, and use of atomic^ energy in solving agricultural research problems are proposed to be undertaken. A new horticultural division is to be set up. The > Institute's programme also includes the establishment of regional stations for virus research, a seed testing laboratory, and a bureau of plant introduction. The Institute has drawn up 68 research projects to be carried out during the Second Five Year Plan. 40. The Central Potato Research Institute, which undertook a coordinated scheme for applied research and development of potatoes during the first five year plan, proposes to give special attention to the production and maintenance of disease-free nucleus seed stock of breeding material and improved varieties and to carry out investigations on tuber crops other than potatoes. The Central Rice Research Institute, which has been engaged in fundamental research work on rice and has been a coordinating centre of information, proposes to establish sub-stations for breeding work on rice. Problems of sugarcane research are being studied under the aegis of the Indian Central Sugarcane Committee. The programme of research projects includes the study of varieties of sugarcane giving high tonnage and high sugar recovery, their response to fertilizers and manures with special reference to yield and quality of juice,-time of harvesting of plant cane for keeping ratoons, cultural and rotational practices best suited to different regions, control of weeds and fungal diseases, inheritance of disease resistance, influence of climatic conditions on insect pests like stem-borer and pyrilla, and research on improvement in the manufacture and storage of gur and improved types of cane crushers and Juice boiling furnaces. A number of research projects are also being taken up at the Indian Institute of Sugarcane Research, the Indian Institute of Sugar Technology and the Sugarcane Breeding Institute.

41. Each of the seven Central Commodity Committees set up by the Government of India has drawn up a programme of investigations in the crops with which it is concerned. Thus, the Indian Central Cotton Committee, which has at present 72 research schemes under investigation, proposes to set up four regional research stations, to remodel the technological laboratory in Bombay and to intensify research work on long-staple cotton. The jute technological laboratory in Calcutta, which functions under the Indian Central Jute Committee, is to be developed and strengthened. An institute of oil technology is to be established by the Indian Central Oilseeds Committee which has evolved a few improved varieties ofoilseeds and has proposed further work on the breeding of improved high yielding varieties. Research work on tobacco is to be stepped up by the Indian Central Tobacco Committee in view of the fact that with decline in the production of high grade tobacco in recent years exports of tobacco have diminished. Special emphasis is to be laid on improving the quality of tobacco and systematic trials of new varieties evolved at Rajamundry are to be carried out. The production of coconut being insufficient to meet the requirements of 'the country, the Indian Central Coconut Committee proposes to strengthen its two existing research stations and to organise three regional research stations, with the object of increasing the yield per tree by improving cultural practices, evolving high yielding varieties and reducing losses due to plant diseases and insect pests. Research on arecanut, which is also in short supply, has to be undertaken as a long-range task as this is a perennial crop and takes 8 to 10 years to bear fruit A central research station and three regional research stations have already been set up and under the auspices of the Indian Central Arecanut Committee it is proposed to establish a central technological laboratory and three more regional stations. The Lac Cess Committee will also intensify research work on the technology and utilisation of lac. Finally, in view of the programme for fruit and vegetable development during the second plan besides establishing a horticultural division at the Indian Agricultural Research Institute, it is proposed to set up horticultural Research stations on a regional basis for the improvement of important fruit crops such as mango, citrus, grape, guava, pineapple and apple. 42. in addition to technical research programmes described above economic aspects of agriculture are now being studied at four-agro-economic research centres which were set up in 1954-55 at Delhi, Santiniketan, Poona, and Madras. It is proposed to establish two more agro-economic centres during the plan period. Under the auspices of the Research Programmes Committee of the Planning Commission farm management studies are being conducted in Bombay, Punjab, West Bengal, Uttar Pradesh, Madhya Pradesh and Madras. Valuable data on the institutional aspects of agricultural development is becoming available from the work of the Programme Evaluation Organisation of the Planning Commission. With the help of these and other studies such as those undertaken by the Reserve Bank of India in the Rural Credit Survey studies it is hoped to fill important gaps in information concerning Indian agriculture, especially those relating to farm cost, economics of farm size, input and output relationships in agriculture, economic aspects of mixed farming, measurement of under-employment, credit needs, indebtedness, capital formation, etc. 43. With the decision to introduce the national extension service over the entire country, proposals to expand the available facilities for agricultural education were also considered. Bihar, Rajasthan and Travancore-Cochin were assisted in establishing new agricultural colleges, in Assam, Hyderabad, Madras, Madhya Pradesh and Punjab the existing agricultural colleges have been strengthened. Two new colleges are being established in Madhya Pradesh. The number of agricultural colleges has now risen to 28 and these institutions will be able to meet the total requirements of agricultural graduates during the second five year plan which are estimated to amount to 6,500. For the training of village level workers, in addition to the existing 54 basic agricultural schools and 44 extension centres, it is proposed to establish 25 new basic agricultural schools, 21 extension centres and 16 basic agricultural wings attached to extension training centres. Marketing Of Agricultural Pproducts 44. The primary consideration for the development of agricultural marketing is so to reorganise the existing system as to secure for the farmer his due share of the price paid by the consumer and subserve the needs of planned development To achieve these objects, malpractices associated with buying and selling of agricultural produce have to be eliminated, arrangements made for the efficient distribution of

marketable surpluses from producing to consuming areas and cooperative marketing has to be developed to the maximum extent possible. Rural marketing and finance have to be integrated through the development of marketing and processing on co-operative lines. Programmes for co-operative marketing and processing which have been drawn up so far for the second five year plan have been outlined in an earlier chapter. Here it is proposed to refer to other aspects of agricultural marketing. It is estimated that cooperative agencies may be able to handle about 10 per cent of the marketable surplus by the end of the second plan. The rest of the surplus will continue to be sold through other marketing agencies. In the interest of the primary producer, therefore, the importance of regulating markets and market practices needs more emphasis. Moreover, the success of cooperative marketing itself depends on the efficiency with which regulated markets function. It has been observed that in States in which regulated markets have not been established to any extent, the cultivator is in a situation of much greater disadvantage than elsewhere. 45. The past few years have not been a period of marked progress in the regulation of agricultural markets. It had been recommended in the First Five Year Plan that the operation of the State Agricultural Produce (Markets) Act should be extended so as to cover all important markets before the end of the plan period. Before the plan seven States had this legislation in operation. During the plan only three more States have enacted legislation. The number of regulated markets which stood at 265 in 1950-51 has increased to over 450. In some of the States which have the necessary legislation trade in a number of important commodities is now being regulated, as for instance, in foodgrains, fruit and vegetables, cattle, etc. The practice of sales in villages is not free from abuse, but it has not yet been regulated to any extent. Municipal markets in towns, where the produce is received on consignment basis and also brought directly by the producers have so far remained generally outside the scope of the State Agricultural Produce (Markets) Act. 'Except in relation to proposals for co-operative marketing, plans of several States for the next five years do not provide adequately for the regulation of agricultural markets. Some States have, however, framed targets for this purpose. Those who have not done so should review the present position and draw up suitable programmes for regulating all important wholesale markets during the second plan. On the programmes so far drawn up it appears that the number of regulated markets will be doubled by the end of the second five year plan. 46. Although the Agricultural Produce (Grading and Marketing) Act was passed as long ago as 1937, except in respect of certain export commodities, progress in the grading of agricultural produce has not been adequate. The compulsory grading of sann hemp and tobacco for export was introduced during the war. The First Five Year Plan recommended introduction of compulsory grading for export in respect of other commodities such as wool, bristles, goat hair, lac, sheep and goat skins. East Indian tanned leather, cashew-nuts, pepper and ginger, oilseeds, oils, essential oils and kapok. During the plan period there has been progress only in respect of wool. and bristles and some essential oils, and preliminary work has been done for the remaining commodities. Compulsory grading should be organised at an early date for all the commodities mentioned in the First Five Year Plan. 47. Grading is necessary not only for commodities which are exported but also for internal trade Hitherto it has been left to the goodwill of individual parties whether or not to seek Agmark grading for their products. In the main, grading has been confined to , ghee and vegetable oils. Grading should be extended to other commodities as well as for ghee and oils. Laboratory facilities for testing quality and purity should be organised. A beginning has been made with the setting up of the Central Quality Control Laboratory at Nagpur and eight regional subsidiary quality control laboratories. It is expected that before the end of the second plan all these laboratories will be functioning. These laboratories, in addition to routine quality control work, will also undertake investigations for fixing or revising specifications of grades of different commodities. Grading of agricultural produce is also an essential aspect of the development of cooperative trade and warehousing. For the pooling of agricultural prouduce and bulk storage suitable grades have to be established for important cereals, oilseeds, pulses, cotton, jute, spices, etc. Some work has been done in this direction. 48. For inter-State trading and for widening the market for agricultural produce, it is essential that weights and measures and contracts of sale and purchase should be standardised. A large proportion of States

have legislation for weights and measures,but some of them have not provided the machinery for supervision and inspection. ,The implementation of the weights and measures legislation has been suspended in view of the recent decision to change over to the metric system of weights and measures. 49. Variations exist in contract terms on the basis of which trading takes place in different markets. For inter-State trade and for making the prices quoted in various markets comparable it is also desirable that contract terms, particularly in respect of such aspects as allowances for quality and packing should be standardised on an all-India basis. The Forward Markets (Regulation) Act, 1952, provides for prior approval of the Forward Markets Commission of bye-laws framed by various recognized trade associations. It is proposed that these associations may adopt the standard contract terms devised by the Ministry of Food and Agriculture for wheat, linseed, groundnut, copra, and for oils prepared from these oilseeds. Standard contract terms should also be prepared for commodities in respect of which forward trading is to be regulated. 50. The lack of accurate and up-to-date market information places both the fanner and the administration at disadvantage. Failure in making market information promptly available is one of the factors accounting for price variations for the same commodity in different markets. In some markets the task of reporting devolves on private agencies and the arrangements made have not proved satisfactory. While information may be available on many .matters from terminal markets, information 'from assembling and distributing centres is far from satisfactory. Commercial agencies engaged in export have information in respect of important markets, but the information received by them is not made public. The plan provides for the setting up of an all-India market news service mainly for farmers, to be organised in collaboration with the States. For providing trained personnel facilities for imparting specialized training in agricultural marketing to 20 to 30 candidates every year are also being arranged. 51. Market research comprising marketing surveys, studies and analysis of price spreads, standardisation of grade specifications and packages etc. is essential for the development of agricultural marketing- The Central Agricultural Marketing Organisation has so far undertaken marketing studies on about 40 principal commodities and published reports on them. The data contained in some of the reports are, however, largely out of date. There have been substantial changes in the pattern of agricultural production and in the composition of foreign and internal trade. It is therefore essential that fresh studies should be undertaken and the data brought up to date. For important crops regional studies should also be undertaken. 52. An important development during the first five year plan was the passing of the Forward Contracts (Regulation) Act, 1952, and the setting up in the following year of the Forward Markets Commission. The Commission advises Government on the associations which should be recognised for forward trading in different commodities and areas and the commodities in which forward market operations may be permitted under the Act It regulates and controls the work of the approved associations, inspects their accounts and maintains a watch over the working of the various forward markets. Its activities are expected to go a long way in eliminating artificial scarcities and wide fluctuations in markets which have sometimes marked the working of commodity markets. During the past year the Central Government have approved new centres for futures trading in a number of commodities Akola and Indore for cotton; Bombay, Ahmedabad, Madras, Adoni, Delhi, Rajkot, Hyderabad and Calcutta for oilseeds and groundnut oil; Sangli for turmeric, Allepey for coconut oil and Cochin for pepper. The Forward Markets Commission is at present engaged in considering applications for recognition received from associations at different centres and it is expected that about 40 associations will be recognised all over the country. Thereafter, the Commission's main task will be to keep the futures markets under observation and regulate their work so as to minimise price fluctuations between different places and between different points of time and to afford hedging facilities to traders. Agricuitural Statistics 53. The collection of accurate and reliable agricultural statistics, their analysis and interpretation on scientific lines are essential for the formulation of correct agricultural policies and for planning agricultural

production. Attention to the inadequacy of such data and the need for their improvement was drawn in the First Five Year Plan. Since then various measures have been taken for improving agricultural statistics. The coverage of the crop forecasts has been enlarged and the time lag in their publication reduced. Cadastral surveys have been undertaken in more unsurveyed areas and primary reporting agencies have been set up where they did not exist As a result of this, the reporting area for which returns of agricultural statistics exist has increased from 615 million acres at the beginning of the first plan to over 720 million acres. Standard definitions and uniform concepts have been laid down and a number of methodological studies have been undertaken by the Indian Council of Agricultural Research. Steps have been taken to improve the quality of the livestock census taken in April, 1956. Much, however, still remains to be done. Data relating to livestock numbers and livestock products and fisheries are inadequate and defective. Reliable statistics are not available for many minor crops of commercial importance. Provision has been made in the plan for improving the coverage, content and quality of agricultural statistics. Improvement in fisheries and livestock statistics will be made on the basis of pilot studies which have been completed.

3rd Five Year Plan

Chapter 19:

AGRICULTURAL PRODUCTION
Programmes of agricultural production lie at the base of the comprehensive approach to the reconstruction of the rural economy which is embodied in the Third Five Year Plan. Development of irrigation, from large as well as small works, soil conservation programmes and supplies of fertilisers, improved seed and credit, along with the provision of extension services reaching down to the village level, are measures undertaken directly to increase production. In support of these programmes, through the community development movement, the energies of each village community as a whole are sought to be harnessed and its manpower and other resources effectively mobilised. Land reform policies aim at removing impediments to greater production due to the agrarian structure inherited from the past and to prepare the way for the development of a progressive agriculture organised on a cooperative basis. The various programmes of cooperative development which have been undertaken and will be given still greater emphasis in the Third Plan are intended to build up the necessary institutional framework for rapid economic development in rural areas such as will be of special benefit to the weaker sections of the rural population. Schemes for increasing agricultural production are closely bound up with the success of animal husbandry and dairying and the development of insheries and of rural industry. From the aspect of long-term development, care of forest wealth, conservation of soil and moisture and the growing of village fuel plantations are of great importance. In some parts of the country rural electrification is already beginning to make a significant impact on rural life through extension of irrigation and speeding up of technological change; this impact will become progressively larger. These various aspects of agricultural development and, in particular, the specific programmes for increasing agricultural production for which the Plan provides, gain in significance when seen against the wider background of the large-scale transformation in rural life which is being brought about through successive Five Year Plans. PROGRESS UNDER THE FIRST AND SECOND PLANS 2. By the end of the Second Plan, the index of agricultural production (base-1949-50) rose to 135, the index for goodgrains being 132 and that for other crops 142. In the First Plan, agricultural production rose by about 17 per cent. During the Second Plan, two years out of five 1957-58 and 1959-60were unfavourable, and the overall increase in agricultural production amounted to about 16 per cent. The following Table shows the production trends since 1949-50*. Table 1 Agricultural Production- 1949-501960-61. commodity unit 19491950- 1955- 1956- 195719581959- 1960-

50 rice wheat all cereals pulses foodgrains (cereals and pulses) . oilseeds sugarcane (gur) cotton Jute allcommodities (index number) million tons 23-7 66 48-4 9-2 57-6 5-1 4.9 2-6 3.1 100

51 20-9 6-6 43-7 8-5 52-2 5-1 5-6 2-9 3.3 95-6

56 27-1 8-6 54-9 10-9 65-8 5.6 6.0 4-0 4.2

57 28-6 9-3 57-4 11-4 68-8 6-3 6'8 4-7 4.3

58 24-9 7-7 53-0 9-5 62-5 6-1 6-9 4-7 4.1

59(a) 30-4 9-8 62-6 12-9 75-5 6-9 7-1 4-7 5.2 132-31

60(b) 61(c) 29-3 9-7 60-5 11-2 71-7 6-4 7-6 3-8 46 32-0 10-0 64-0 12-0 76-1 7-1 8-0 5-1 4.0

"
,, ,, ,, ,, ,, million bales ,,

116-8 124-0 114-6

127-2 135-0

*The coverage of crop statistics gradually increased in the course of the First Five Year Plan and from time to time changes were also introduced in the techniques of estimation. The estimates of production of foodrgains in the table have been adjusted to suit these changes upto 1956-57. (a) Partially revised estimates (b) Final estimates (c) Provisional. 3. Before the Second Plan took final shape, it was realised that the programme of economic development with special emphasis on heavy industries which the Plan embodied would demand a larger increase in agricultural production than had been at first envisaged. Accordingly, in consultation with State Governments, the initial targets were reviewed, and in November, 1956. the following revised targets were proposed : foodgrains, 80.5 million tons; oilseeds, 7.6 million tons; sugarcanc (gur), 7.8 million tons;cotton, 6.5 million baies; and jute, 5.5 million bales. The level of food production in 1960-61 which has been shown in the Table above at 76 million tons is expected to reach about 78 million tons when the revised estimates of crop production become available. The Second Plan target for the production of sugarcane has been exceeded; on the other hand, there has been stagnation in cotton and jute. In oilseeds also, production has fallen below the target. In view of the production trends during the Second Plan, it is of the highest importance that in the Third Plan, besides achieving self-sufficiency in foodgrains, substantial increases should be secured in commercial crops, specially cotton, oilseeds and jute. With the growth of the economy and increase in domestic demands as well as the need to step up exports, success in increasing the production of commercial crops is as vital as increase in the production of foodgrains. 4. In the Second Plan, out of a total anticipated outlay under agriculture and community development of Rs. 529 crores, agricultural production programmes accounted for about Rs. 290 crores. In addition, there was a total outlay of Rs. 372 crores on major and medium irrigation schemes. In the course of the Plan additional resources were provided for minor irrigation. The following Table summarises information received from State Governments regarding progress in carrying out programmes of agricultural development. Table 2 Agricultural programmesprogress in the Second Plan programme major and medium irrigation minor irrigation unit million acres (gross) Estimated achievement 6-9 9-0

soil conservation on agricultural lands lands reclamation area under improved seeds (foodgrains) consumption of nitrogen (N) consumption of phosplntic fertilisers (P2O5) urban compost rural compost green manuring million tons " million acres ,, thousand tons

2-0 1 -2 55 230 70 3 83 11-8

Apart from the influence of unfavourable seasons, greater progress might have been achieved in agriculture during the Second Plan if the benefits of the substantial investments incurred, for instance, in the extension of irrigation, both from small and large irrigation works, and in the establishment of seed farms could have been realised more speedily. Programmes which require large-scale participation on the part of the people, such as, soil conservation, made only limited progress. The consumption of fertilisers, which has been recently stepped up to a considerable extent, increased very slowly during the first four years of the Second Plan. This was due both to the shortage of foreign exchange and to the inadequate progress made in establishing the new fertiliser plants. When the agricultural targets for the Second Plan were reviewed in 1956, it was specially emphasised that programmes for the multiplication of improved seeds, for the use of fertilisers and for irrigation, soil conservation, etc., would be implemented so as to yield the maximum benefits within the shortest time. It was envisaged that there would be carefully worked out programmes for covering every acre of land enjoying irrigation or assured rainfall with improved seeds and that the supply of fertilisers and organic and green manures would be ensured. Sufficient progress was not made in these directions. Consequently, a much larger task in agriculture remains to be accomplished during the Third Plan. More than any other factor, the success of the Third Plan will turn on the fulfilment of its agricultural targets. APPROACH IN THE THIRD PLAN 5. In formulating agricultural production programmes for the Third Plan, the guiding consideration has been that the agricultural efforts should not be impeded in any manner for want of financial or other resources. Accordingly, finance is bsing provided on a scale which is considered adequate, and the further assurance is given that if, for achieving the targets of production, additional resources are found necessary, those will be provided as the Plan proceeds. Supplies of fertilisers are also to be made available on a large scale. Efforts are being made to strengthen agricultural administration in the States, and stress is being placed on the closest possible coordination between different agencies, notably, those concerned with agriculture, cooperation, community development and irrigation. Supplies of credit through cooperative agencies are being expanded, and the need for linking credit with production and marketing is emphasised. It may be stressed, however, that while these efforts should go a long way, they are not in themselves a sufficient guarantee that the agricultural objectives of the Third Plan can be realised. 6. The central task of the community development organisation and of extension workers at the block and village levels is to mobilise the rural community for intensive agricultural development, to impart a sense of urgency and direction to the work of all the agencies operating on behalf of the Government, and to ensure that the requisite supplies, services and technical assistance are available at the right time and place and in the most effective manner possible. At the same time, the Agriculture Departments must place at the disposal of the community development organisation at the block level the supplies, trained personnel, and other resources needed. This means that all families in the village, specially those engaged in cultivation, must be involved in the agricultural effort through the village cooperative and the panchayat, and enabled to achieve larger results through village production plans. In view of the experience in the Second Plan, these essential conditions cannot be too greatly stressed. As the country

enters upon the larger tasks of the Third Plan, there is urgent need to improve the organisation of agricultural programmes at the local level as well as at higher levels in the States and at the Centre. 7. The Third Plan provides for an outlay on production programmes in agriculture, including large and small irrigation schemes, soil conservation and co-operation, of about Rs. 1280 crores, the comparable outlay in the Second Plan being of the order of about Rs. 667 crores. Table 3 Outlays on agricultural production (Rs. crores) Second Plan agricultural production minor irrigation soil conservation cooperation community development (agricultural programmes) . major and medium irrigation total 98-10 94.94 17-61 33-83 50-00 372-17 666 -65 Third Plan 226 -07 176-76) 72-73 80-10 126-00 599 -34 1281 -00

Besides resources provided for the Third Plan, finance from cooperative agencies will also increase substantially. Short-term and medium-term loans are expected to go up from about Rs. 200 crores and the amount outstanding on account of long-term loans from about Rs. 34 crores in the last year of the Second Plan to about Rs. 530 crores and Rs. 150 crores respectively by the end of the Third Plan. 8. Programmes and targets for agriculture embodied in the Draft Outline of the Third Plan were based on preliminary studies undertaken by State Governments and the Central Ministries concerned. These were intended to provide a basis for detailed agricultural programmes to be prepared in the light of local conditions and possibilities in districts, blocks and villages. It was suggested that with a view to securing the largest measure of local participation and, in particular, the fullest utilisation of the local manpower resources, programmes relating to agriculture, minor irrigation, soil conservation and the development of cooperation should be formulated through district and block plans. An attempt has been made in several States to draw up local plans on these lines. It has been observed, however, that plans at the local level are easier to formulate after the broad dimensions and objectives of the State plans have been established. Although in proposing targets and in evolving programmes. State Governments have taken advantage of their experience in preparing district and block agricultural plans, on the whole, the programmes and the estimates of production which now form part of the plans of States have'been arrived at through studies by the Departments concerned at the State level. Their proposals have been considered in two series of discussions between the States, the Planning Commission and the Central Ministries, and care has been taken to prepare them in some detail. Nevertheless, the limitation persists that they are not yet as firmly based on area plans as had been earlier hoped for. For realising the programmes and targets accepted by States there must, therefore, be continuing emphasis on the drawing up of annual district and block agricultural plans within the general scheme of the five year programme. Without district, block and village agricultural production plans, it will be difficult to ensure the widespread cooperation and local initiative and understanding of the tasks to be accomplished which are the fundamental conditions for success in agricultural development. PROGRAMMES FOR INCREASING AGRICULTURAL PRODUCTION 9. The principal technical programmes for increasing agricultural production, around which intensive work is to be organised, are : (1) irrigation, (2) soil conservation, dry farming and land reclamation, (3) supply of fertilisers and manures. (4) seed multiplication and distribution, (5) plant protection, (6) better ploughs and

improved agricultural implements, and adoption of scientific agricultural practices. In all areas, and specially in the development blocks taken up under the community development programme, these programmes will need to be implemented with the largest measure of participation on the part of local communities and to reach as many families as possible through the village production plans. In addition, in fifteen districts, in which conditions are specially favourable on account of the availability of irrigation and assured rainfall, and the co-operative movement is fairlv established, it is proposed to undertake agricultural programmes on a more intensive scale than may be generally feasible. In all areas. and more especially in these, a concentrated effort will be made to reach all farmers and to promote the adoption by them of a minimum combination of improved practices. 10. The main targets under different development programmes for agriculture are summarised below : Table 4 Targets of agricultural programmes Third Plan programme I. irrigation : 1. major and medium irrig (gross) . 2. minor irrigation (gross) . (a) agriculture (o) community development . total II. soil conservation, land reclamation, etc. (o) soil conservation on agricultural lands (b) dry farming . (c) land reclamation (d) reclamation of saline and alkaline lands Ill IV additional area under improved seedsfoodgrains . consumption of chemical fertilisers (a) nitrogenous (N) (6) phosphatic (P2O5) (c) potassic (K20) V. organic and green manuring (a) urban compost (6) rural compost (c) green manuring VI. plant protection million acres million tons 5-0 150-0 41-0 50-0 thousand tons 1000 400 200 11 -0 22.0 3-6 0-2 148 .0 ation million acres 12-8 12-8 9-5 3-3 25-6 unit target

The targets of agricultural development agreed to in consultation with individual States are set out in Annexure I to this chapter. MINOR IRRIGATION 11. The gross area irrigated during the Third Plan from irrigation schemes is estimated at 25.6 million acres12.8 million acres each from major and medium irrigation works and from minor irrigation works. Of the latter, schemes financed from provisions under the community development programme are expected to irrigate about 3.3 million acres, the rest of the irrigation being secured from schemes within the agricultural programme.

Statistics relating to land utilisation are not yet available beyond 1957-58, and it is difficult to ascertain the actual increase in net irrigated area during the first two Plans as a result of the irrigation programmes which have been carried out. Minor irrigation works include a variety of schemes, some of which stabilise existing irrigation or, as in the case of drainage schemes and embankments, improve the existing irrigation without necessarily increasing the area irrigated. Allowance has also to be made for minor irrigation schemes which go out of use on account of 'depreciation' or are replaced by irrigation from major and medium irrigation schemes. Tn the Draft Outline it was reckoned that at the end of the Second Plan the net irrigated area might be of the order of 70 million acres, increasing to about 90 million acres by the end of the Third Plan. Recent estimates appear to suggest lower figures, but the available data are far from satisfactory. There is considerable discrepancy between statistics of progress reported in respect of both large and small irrigation schemes, and those relating to land utilisation which become available after a lag of about three years. It is proposed to undertake a special investigation into these differences. 12. In the Third Plan the total outlay on minor irrigation from provisions under agriculture and community development is likely to be about Rs. 250 crores, in addition to such finance as cooperative agencies may provide. Thus, minor irrigation is one of the larger investment programmes in the Third Plan. The principal advantages of minor irrigation works are that they can be executed quickly, entail small outlays and there is only a short lag between their completion and the realisation of benefits. Moreover, they can be undertaken at the initiative of individuals and small groups and offer scope for participation by the community. Yet, it has been observed that minor irrigation programmes are tending increasingly to develop as programmes for small-scale irrigation works executed by Government agencies with little voluntary labour or participation by the people. It is of the utmost importance that for the greater part minor irrigation should be developed in all States as essentially a community programme in which local contributions in money and labour are specially stressed. When the scale of the minor irrigation programme becomes large, it involves problems of organisation, investigation and utilisation which may in some ways be even more difficult than those which arise in the case of larger irrigation works. In the early phases of the minor irrigation programme the simpler categories of works can be taken up and the need for extended surveys is not always felt. Preliminary studies suggest that the possibilities of minor irrigation development could extend eventually to a gross area of about 75 million acres. To realise this potential, surveys and investigations should be undertaken in every State in a systematic manner for various river basins, and there should be adequately staffed investigation units working in different areas. At present few areas have minor irrigation projects which are worked out sufficiently in advance for implementation without delay. 13. Experience during the First and Second Plans suggests certain directions in which the implementation of the minor irrigation programme needs to be improved if full benefits by way of increase in agricultural production as well as adequate financial returns are to be realised. These relate to better maintenance, adoption of appropriate crop patterns, better utilisation and water management, and efficiency in execution. Investigations undertaken by the Committee on Plan Projects and other studies have pointed to the need for strengthening the present arrangements for the maintenance of minor irrigation works on the part of the State Governments as well as local communities, thereby reducing losses due to 'depreciation' which appear to occur at present at an alarmingly high rate. An increasing proportion of minor irrigation works now under construction are such that State Governments should undertake responsibility for their maintenance. The technical and administrative organisation for minor irrigation works must therefore be strengthened and regular inspection and supervision assured. It is also essential that certain obligations should be placed by law on local communities and beneficiaries. In most parts of India obligations relating to the maintenance of field channels were long in existence and were entered in revenue records. These customary obligations have, however, tended to fall into disuse, and greater definiteness has now to be given to them through legislation. Some States have already enacted such legislation. The main obligations to be undertaken relate to construction and maintenance of field channels, maintenance of bunds and tanks, and desilting of the beds of tanks where the works are not of such magnitude that they must be taken up by Government. It is envisaged that statutory powers should be conferred on village panchayats for enforcing these obligations on the part of beneficiaries. If the latter fail to carry out the works in time, the panchayat should carry them out and

realise the cost. In the event of village panchayats failing to carry out the works, the Government or, on its behalf, the Panchayat Samiti of the development block may arrange for their execution, the cost being recovered eventually from beneficiaries. 14. The problem of reducing time lags between the completion of works and realisation of their benefits arises not only for large schemes but also for a large proportion of small irrigation schemes. Being widely dispersed, minor irrigation works demand in fact greater attention from the extension agencies. A recent field study of the problems of minor irrigation by the Programme Evaluation Organisation suggests that non-utilisation of facilities is a factor of quite serious dimensions even in the case of minor irrigation, and calls for close study in each area with reference to different types of works. Irrigation in any area calls for a series of agricultural measures, including adoption of new crop patterns, land development, soil and water conservation and other improved agricultural practices. It is important that agricultural extension personnel should concentrate on these measures, so that irrigation yields the expected benefits. The methods to be adopted are well-known and the question is primarily one of advance planning and of giving continuous attention to the tasks mentioned above. 15. Execution of the minor irrigation programme has suffered to some extent because experienced personnel able to adapt their technical knowledge to different kinds of construction works have not been available in sufficient numbers. The situation has improved to some extent. However, in view of the large size of the programme to be carried out in the Third Plan, it is necessary that suitable technical cadres should now be built up in the States. This will become all the more important if a large-scale rural works programme devoted specially to agricultural development, as has been visualised, is to be successfully organised. Moreover, in several parts of the country the scope of the minor irrigation programme is itself being enlarged through the development of rural electrification. During the Second Plan, minor irrigation programmes suffered to some extent from difficulties in acquiring land, inadequate delegation of financial and administrative powers to personnel in charge of works, and failure to sanction works in advance of the construction season. 16. There are other problems of an administrative nature to which attention should be drawn. There has been a tendency for overlapping financial provision for minor irrigation schemes under agriculture and under community development. It is necessary that the financial provisions for minor irrigation schemes, whether under agriculture or community development, are pooled together at the block level and utilised for the maximum benefit of the area. It is considered that for individuals assistance for minor irrigation works should come, as far as possible, from cooperative agencies and taccavi loans and from the Agricultural Departments. Provisions available under the community development block budget should give preference to schemes benefiting large numbers of persons jointly. They may be undertaken either by village panchayats or by cooperative groups. 17. In recent years, in irrigation as in other fields of agricultural development, different kinds of subsidies have been used as a method of stimulating new activity. The general policy should be to reduce these subsidies progressively and, where possible, to eliminate them. There might be some justification for a subsidy which is intended to benefit the poorer sections of the community or to support for a limited period innovations or improved practices which have not yet been accepted. The existing schemes of subsidies should be review critically and, after examining other ways of achieving the same objects, phased programmes should be drawn up for reducing and, to the extent feasible, terminating the subsidies. 18. For the Third Plan the Central Government have sponsored two new schemes in the field of minor irrigation. A programme of applied research is to be taken up for the study of problems which arise in the execution of minor irrigation works with a view to effecting economy in construction costs, efficient operation of irrigation works and economic use of water reaching the fields. A scheme for training agricultural graduates in irrigation water use has also been formulated. These schemes will be undertaken through the agency of both Central and State Institutions.

19. In some parts of the country, specially the Punjab and Uttar Pradesh, the problem of water-logging has become serious. With a view to reclaiming water-logged areas and checking deterioration, agricultural programme provide for schemes for improving surface drainage and installing shallow tubewells. 20. For several areas an extensive programme of exploratory tubewells has been in operation. Out of 379 drillings which have been attempted, as many as 195 have proved successful upto March, 1961. The successful tubewells are being taken over by the State Governments concerned. If the data are made available more widely, the construction of private and cooperative tubewells could be encouraged in the more favourable areas. 21. Soil conservation, dry farming and land reclamation.Considerable emphasis is being given in the Third Plan to soil conservation and dry farming. These programmes are dealt with in the Chapter on Soil Conservation. A word may, however, be said here on land reclamation. A technical committee is at present engaged, in cooperation with States, in surveying and locating large blocks of waste lands. The committee has already completed its surveys of land classified as "other uncultivated lands excluding fallow lands" and "fallow lands other than current fallows" in seven States. In these, a total area of nearly one million acres comprising blocks of land of 250 acres or more which may be available for reclamation and resettlement has been located. Schemes for reclaiming these blocks will have to be drawn up. The area of 3.6 million acres shown as the target for land reclamation includes about 2 million acres in Rajasthan and also some other lands recommended by the technical committee. The programme for mechanised land reclamation operations will require personnel trained in the operation, maintenance and repair of tractors. In addition to the existing Tractor Training Centre at Budni (Madhya Pradesh) the Third Plan provides for the establishment of a second centre. The centre at Budni is also being developed. 22. Fertilisers and manures.Supplies of fertilisers are proposed to be increased during the Third Plan in accordance with the following provisional schedule: (thousand tons) year 1960-61 1961-62 1962-63 1963-64 1964-65 1965-66 nitrogenous fertilisers phosphatic (nitrogen) fertilisers (P2O5) 230 400 525 650 800 1000 70 100 150 225 300 400 potassic fertilisers (K20) 25 82 100 130 160 200

Programmes for indigenous production and for imports both of fertilisers and of the raw materials needed, are based on the above estimates. 23. Although there has been rapid growth in the demand for. fertilisers and in recent years it has not been possible to meet the full requirements of cultivators, it will be a considerable administrative task to ensure the efficient distribution and use of increased supplies contemplated for the Third Plan. In this connection, reference may be made to the recommendations made by the Fertiliser Distribution Enquiry Committee, in particular, to the emphasis on the use of fertilisers in the form of mixtures with a view to promoting balanced fertilisation and making the best use of supplies of nitrogenous fertilisers, improved arrangements for distribution and attention to quality, and reduction in costs of distribution. As suggested by the Committee, for dealing effectively with problems arising out of increased distribution of chemical fertilisers, their storage and sales promotion, etc., a Central Fertiliser Marketing Corporation is proposed to be set up during the Third Plan period. The U.N. Fertiliser Mission which has recently studied the

fertiliser problem has stressed the need for educational work with the small farmer for extensive soil tests to determine the kinds and quantities of fertilisers needed under different conditions, and for continuous research into the use of fertilisers. The availability of credit for enabling small cultivators to use fertilisers is also of the greatest importance. These considerations should be kept in view in implementing the programmes formulated by the States. 24. Despite progress in some directions, on the whole, sufficient stress is still not being laid in extension work on the development of local manurial resources, specially organic manures. Among the targets adopted by States for the Third Plan are about 5 million tons of urban compost, about 150 million tons of rural compost, and green manuring of about 41 million acres of land comparing to about 12 million acres at the end of the Second Plan. Except for the urban compost programme, which is organised through municipal committees and the larger village panchayats, fulfilment of the other targets is difficult to measure. It is hoped that through intensive work at the block and village levels the targets for green manuring and rural compost will be further improved upon. Increasing emphasis is also proposed to be laid on utilisation of sewage. A direction in which there is need for intensive work is the production of nightsoil compost. This has been taken up on a pilot basis in several places, and it is suggested that the experience gained should now be studied with a view to formulating a larger and a more extended programme of development. 25. Some progress has been made in developing cowdung gas and manure plants suitable for use in villages. The Indian Agricultural Research Institute has designed a model of the gas plant which is being used in some villages near Delhi and elsewhere, the gas plant costs about Rs. 400 to Rs. 450, and this is a factor inhibiting its adoption on a wider scale. The more extended use of the gas plant will help increase soil fertility and crop yields besides contributing to the solution of the fuel problem. 26. Soil testing has an important contribution to make in determining the right use of fertilisers tor increasing crop yields and maintaining soil fertility. In recent years a number of laboratories have been established and their studies are coordinated by the Indian Agricultural Research Institute. With the object of compiling data on soils, providing training in soil science and soil mechanics and undertaking both fundamental and applied soil research, it is proposed to set up a Central Institute of Pedology and Soil Mechanics. 27. Seed multiplication and distribution. Establishment of seed farms in all development blocks to meet the requirements of foundation seed of improved varieties was one of the principal programmes undertaken in the Second Plan. In all, about 4000 seed farms are reported to have been set up and about 800 more are expected to be established in the early years of the Third Plan. At the end of the Second Plan, a large proportion of the farms established have begun to provide seed for multiplication by registered growers, and it may take two or three years more before the benefits of the programme begin to be realised on a significant scale. Although, on an average, an area of 25 acres for a seed farm was at first indicated, a fair proportion of seed farms are of larger size. At the larger farms it is easier to provide technical personnel of the requisite quality and to undertake production on a more economic basis. These considerations should be kept in view, specially in respect of seed farms which have still to be set up, and of those which, as a temporary measure, were started on leased lands. Each seed farm provides for a seed store. To ensure better distribution, in the Third Plan States have generally provided for the setting up of an additional seed store in every development block. At the end of the Second Plan, the area under food crops covered by improved seed is estimated at 55 million acres. This is expected to increase by 148 million acres in the course of the Third Plan. While registered growers have a valuable role to play in the multiplication of improved varieties of seed, in formulating block and village agricultural plans, the aim should be to ensure that every village produces its own requirements of improved seed. undertaking as large a share of this task on a cooperative basis, but also making use of the better farmers. A field study of the multiplication and distribution programme for improved seed undertaken by the Programme Evaluation Organisation has revealed a number of weaknesses in the axisting situation and in the working of seed farms. It is suggested that State Governments may review their proposals for the Third Plan in the light of these findings.

28. Considerable research has been undertaken in recent years for evolving high-yield hybrids of maize, and it has been found that with moderate amounts of nitrogenous fertilisers the yield of maize hybrids increases more than twice that of the local varieties. It is therefore proposed to take up the cultivation of hybrid maize on a countrywide scale, the first stage being to bring about 25 per cent of the maize area under hybrid varieties during the Third Plan. It is also intended to make a start with the production of hybrid jowar seed. The Ministry of Food and Agriculture propose shortly to establish a Seed Corporation with the object of ensuring production at selected farms under conditions of efficient management and maintaining purity and the maximum yield. An organisation is to be set up for the production of nucleus seed, and it is envisaged that cooperatives and other suitable organisations and, where necessary, individuals should function as certified seed agencies. Legislation for controlling the quality of seeds and regulating their production, marketing and movement is also under consideration. 29. Plant protection.Over the past decade, plant protection measures have lagged behind several other aspects of the agricultural programme. In the Second Plan, the programme covered about 16 million acres of land. For the Third Plan, States have indicated a target of 50 million acres. The precise damage to crops from insects, rodent and other animal pests and on account of diseases, weeds and parasitic flowering plants, is difficult to assess, but there can be no doubt of its serious dimensions. Similarly, considerable losses are caused by the deterioration of foodgrains and other agricultural commodities during storage through insects, rats, mice, etc. Much of the damage can be prevented if plant protection measures are adopted on an adequate scale as an integral part of the agricultural programme. Plant protection organisations in several States need to be strengthened at various levels. In addition to special units which might function over larger areas, it is necessary that with a view to securing the maximum exiension effect, manually operated dusters and sprayers should be supplied extensively to farmers and to village panchayats. With these it is essential to ensure the timely supply of pesticides. 30. Improved Agricultural Implements.A serious gap in the agricultural programmes undertaken during the First and Second Plans has been in the field of improved agricultural implements. There is general recognition of the importance for scientific agriculture of improved tillage and harvesting practices, but specific action has been slow and insufficient. As has been pointed out, progress in the introduction of improved agricultural implements calls for steps at the same time in a number of directions. 31. The broad features of the programme for the adoption of improved agricultural implements proposed for the Third Plan may be briefly set out as follows : (1) Adequate supplies of iron and steel of the categories required for agricultural implements should be made available. Precise estimates of requirements should be prepared each year in advance based on the actual programme of production and distribution which it is proposed to carry out. Requirements for manufacture of implements should be estimated separately from those for repairs and maintenance. It will be an advantage to place the supplies of iron and steel for agricultural purposes at the disposal of the Agricultural Departments in the States. (2) The principal implements which should be recommended in each State for popularisation have been selected provisionally by groups of experts. The suggestions should be considered by States and a final selection should be made with a view to arranging for production, distribution, etc. (3) Four regional research, testing and training centres for improved agricultural implements have been set up by the Indian Council of Agricultural Research as part of its programme in the Second Plan, and are to be transferred to the States in which they are situated. It is proposed to establish one research, testing and training centre in improved agricultural implements in every State. Research, testing and training centres should be free to undertake manufacture on a commercial scale but, in the main, they should concentrate on the production of improved proto-types and of implements which are not in the market and of components of special quality which may be used by other fabricators. As part of the intensive agricultural district programme, workshops are also being established in a number of districts. For improved implements to spread out rapidly, their production should be taken up as development

programme at the district and block level, and industrial co-operatives for the manufacture of agricultural implements should be actively supported. (4) According to their conditions suitable extension arrangements should be made by State Governments at the district and block levels for demonstrating and popularising improved agricultural implements. It would not be possible to set up such units at the block level in all the development blocks in the country. It would, therefore, be an advantage to consider the possibility of setting up a small number of units, say four, at the district level and attach them to the district agricultural officer. These units could move between development blocks, working in eac] block under the direction and guidance o the Agricultural Extension Officer and thi Block Development Officer. The unit could provide the necessary orientation t( village level workers and village artisans and could demonstrate improved implements to the cultivators. At the block headquarters there should be a stock oi implements readily available for demonstration and hire. These implements could be purchased from within the block budget and additional implements could be provided by the State Agricultural Department. (5) Steps should be taken to strengthen the agricultural engineering section of State Agricultural Departments. The financial assistance extended to States for implementing the recommendations of the Report of the Agricultural Administration Committee will also be available for strengthening agricultural engineering personnel of the State Agricultural Departments at the State level and at the district level. (6) With due regard to the size of the programme to be undertaken each year, assured arrangements for credit for supplying improved implements should be made. Credit should be provided both through cooperative agencies and by way of taccavi loans. Plans for co-operative development drawn up so far do not provide sufficiently for credit for agricultural implements, and this aspect should receive special attention. (7) Agricultural workshops have been established at 25 extension training centres. It is proposed that all extension training centres should now be equipped with agricultural workshops for providing training facilities for village level workers. mechanics and artisans. (8) At the State level, there may be a Committee or a Board, including representatives from amongst farmers and manufacturers and others, for assisting in drawing up production programmes and devising suitable arrangements for distribution and ensuring supplies of raw materials. With expansion in the agricultural implements programme, there will be need for considerably larger numbers of agricultural engineers than the existing training facilities are likely to make available. This aspect has been taken into account in formulating the programme of technical education. The total provision in the Third Plan for the programme of agricultural implements is about Rs. 8 crores. 32. Intensive agricultural district programme. In recommending the selection of certain areas for more intensive efforts, the Agricultural Production Team sponsored by the Ford Foundation observed that there were no inherent soil, climatic or other physical reasons for the present low yields. The Team, therefore, suggested that those selected crops and those selected areas in each State should be chosen which have the greatest increase potentialities. In pursuance of this proposal, the intensive agricultural district programme has been taken up, to begin with, in one district in each State. The programme is intended to contribute both to rapid increase in agricultural production in the selected areas and to suggest new innovations and combinations of practices which may be of special value elsewhere. In the selected districts an attempt will be made to provide all the essential elements for increasing production to the extent needed, such as, supplies of fertilisers, pesticides and improved seeds and improved implements, and composite scientific demonstrations will be laid out on a large scale. An effort will be made to provide credit on a scale sufficient to reach all farmers, including those previously considered uncredit-worthy and credit and marketing will be linked. Extension personnel, specially in agriculture and cooperation, are being made available on a somewhat larger scale than in other areas so that they can work intensively with Panchayat Samitis and Village Panchayats and with co-operative organisations. Through benchmark

surveys and systematic evaluation, high standards of performance will be insisted upon in these districts. The districts chosen for intensive development should give to the agricultural and other services in each State special opportunities for developing improved methods for extension and for planning of agricultural production at the block and village levels as well as in relation to the individual farmer. ESTIMATES OF PRODUCTION IN THE THIRD PLAN 33. The development programmes which have been described above constitute the essential targets of the Third Plan. However, for various purposes, it is useful to estimate additions to production likely to be achieved on the assumption that the various development programmes are carried out and, along with these, improved agricultural practices are adopted on the scale contemplated. Although efforts have been made in recent years to base 'yardsticks' of additional production on precise experimental data, the measures adopted must be regarded at best as rough guides rather than as a satisfactory basis for firm targets. Moreover, in agriculture weather conditions are always dominant element. These limitations should be kept in view in comparing the following estimates of production which may be realised by the end of the Third Plan. Table 5 Estimates of production in the Third Plan commodity unit base level production 1960-61 76'0 7-1 8-0 5'1 4-0 4500 93 73 26 2-26 50 300 725 48 26-4 target of additional production 1961-66 24-0 2-7 2-0 1-9 2-2 775 7 77 1 0-36 12 25 175 32 18-6 estimated percentage production increase in 196566 100-0** 9-8 10-0 7-0 6-2* 5275 100 150 27 2-62 62 325 900 80 45 31-6 38-0 25-0 37-2 55-0 17-2 7.5 105-5 3-9 15-9 24-0 8-3 24-1 67-7 70-5

foodgrains oilseeds sugarcane (gur) cotton . jute coconut arecanut cashewnut pepper cardamom lac tobacco tea coffee . rubber

million tons " ,, million bales " million nuts thousand tons " ,, ,, million Ibs. thousand tons

* Excludes mesta which may provide an additional 1.3 million bales in the Third Plan. ** It is estimated that the production of rice in 1965-66 may be about 45 million tons of wheat about 15 million tons of other cereals about 23 million tons and of pulses about 17 million tons. Estimates of increase in production of major crops in different States are set out in a series of statements in Annexure II to this chapter. 34. According to the estimates of increased production the index of agricultural production (base194950) should rise from 135 in 1960-61 to 176 in 1965-66, the total increase being about 30 per cent over the five year period. Increased production of the order envisaged above can take place only on the

assumption that the various development programmes will be carried out effectively and with widespread public participation and use of local manpower and other resources and that intensive efforts will be made in every block to adopt improved agricultural practices. The following Table compares the average yield in Ib. per acre during the period of the Second Plan and that anticipated for the Third Plan : Table 6 Average production and yield per acre in the Second and Third Plans crop average annual production fmm. tons) 1956-57 to 196061 foodgrains (i) rice (ii) wheat oilseeds sugareane (Our) cotton (million bales) jute 70-9 29-3 9'3 6-5 7-3 4-6 4.4 average yield (Ib. per acre) percentage increase during Third Plan Plan over Second Plan

1961-62 to 1956-57 to 1961-62 to production yield 1965-66 1960-61 1965-66 86-8 39-4 12-1 8-6 9-3 6-1 5-1 575 807 662 451 3206 95 1035 670 1029 795 500 3788 108 1200 22-4 34-4 30-1 32-3 27-4 32-6 15-9 16-5 27'5 20-1 10-9 18-2 13-7 15-9

The greater part of increase in yields will necessarily have to be secured in areas under irrigation and assured rainfall, but even in other areas through soil conservation and dry farming there should be some improvement in yields. 35. The estimates of production for the Third Plan given in Table 5 represent an appreciable increase in per capita availability. In foodgrains, the availability per capita is expected to increase from 16 oz in 196061 to 17.5 oz per day in 1965-66 and consumption of cloth from about 15.5 yards to 17.2 yards per year. Consumption of edible oil is expected to go up from 0.4 oz to 0.5 oz per day over the Third Plan period. 36. A preliminary assessment of the likely changes in the Third Plan in the pattern of land utilisation suggests that the net area sown may increase from about 327 to 335 million acres and area sown more than once from about 52 to 67 million acres. The area of culturable waste is expected to diminish from about 47 to 41 million acres. OTHER ASPECTS OF THE AGRICULTURAL PROGRAMME 37. Commercial Crops.Except for sugarcane, the targets set for commercial crops in the Second Plan have fallen short to a considerable extent. Therefore, in the Third Plan it is essential to intensify efforts for increasing the production of these crops, specially, cotton, jute and oilseeds. Over and above the provision for programmes like minor irrigation, seed farms and plant protection which will benefit all crops, outlays to the extent of about Rs. 26 crores have been provided for special development schemes relating to different commercial crops. As the Plan proceeds, it might be necessary to make larger resources available for special development schemes of commercial crops. Special care will be taken to ensure adequate supplies of fertilisers for these crops. Tt might also be necessary to facilitate diversion of areas from millets to commercial crops. THe aim is not only to attain higher levels of nroduction, but also to secure larger supplies of varieties which have considerable export damand or which will save on imports.

38. Detailed programmes relating to different commercial crops have been worked out by various commodity committees. In the main, these involve expansion and intensification of programmes already adopted during the Second Plan. Some features of these programmes, on which special stress is being laid in the Third Plan, may be briefly mentioned. It is proposed to provide necessary support for increasing the production of cotton and specially of longstaple varieties of cotton, such as, sea-island cotton in Mysore and Kerala and hybrid cotton in Gujarat and Maharashtra. The cultivation of sea-island cotton is to be extended from about 20.000 acres at present to about 300,000 acres at the end of the Third Plan. Programmes for jute development are directed, in particular, towards improvement in quality through the provision of retting tanks and of high quality seeds. Greater attention will be given to the development of supplementary fibres, such as, mcsta, sisal, ramie, etc. Increase in the production of oilsceds is one of the critical targets in the Third Plan both to meet higher domestic demands and to provide surpluses for export. To increase the availability of vegetable oils for exports, it is proposed that in the course of the Third Plan at least about one-half of the cotton seed available should be utilised for extracting oil. and solvent extraction of expeller oilcakes should be substantially increased. Greater attention will also be given to problems connected with the development of non-edible oilseeds like mahiiva and neem as also rice bran, etc. The Ministry of Food and Agriculture propose to set up a Spices and Cashewnut Committee for undertaking research and guiding development in these crops. The programme for cashewnut development involves bringing under cultivation an additional area of about 300,000 acres. In tobacco the main problem is to produce varieties for which there is demand abroad. Greater attention will, therefore, be given to the improvement of Virginia and other types of tobacco by ensuring supply of pure seed, provision of the types of fertiliser required, careful handling of leaves and better arrangements for curing. The increase in production during the Third Plan from 300,000 to 325,000 tons is intended almost entirely for the production of Virginia tobacco. 39. Tea, Coffee and Rubber.Plantation crops, specially, tea, coffee and rubber, have been assigned high priority in the Third Plan. The Plan envisages increase in the export of tea from 465 to 550 million Ibs. and more than twofold increase in exports of coffee from the present level of 340,000 cwt. The consumption of rubber has increased rapidly in recent years and is now estimated at 53,000 tons. Requirements by the end of the Third Plan are estimated at about 100,000 tons. In the course of the Third Plan it is proposed to increase the production of natural rubber from about 26,000 to 45,000 tons and also to produce about 15,000 tons of reclaimed rubber and 50,000 tons of synthetic rubber. Supplies of fertilisers on an adequate scale will be provided for all plantation crops. To facilitate replanting programmes arrangements are also being made to provide the necessary finance. 40. Horticulture.A number of new schemes were introduced during the Second Plan for the development of fruit production. These include provision of financial assistance for planting new orchards and rejuvenating old ones, as well as facilities for training gardeners. During the Second Plan about 166,000 acres of new orchards were planted and about 132,000 acres of old orchards were rejuvenated, and over 4,000 gardeners were trained. The total area at present under fruits and vegetables is estimated to be about 6 million acres, of which nearly one-half is under fruit cultivation. In the Third Plan, the total area under fruits and vegetables is expected to increase to about 7 million acres. It is proposed to bring 235,000 acres under new orchards and to rejuvenate 250,000 acres under old orchards. Besides continuing schemes already in operation, the plans of States provide for the establishment of progeny orchards with nurseries and garden colonies. The nurseries will help in the supply of planting material of reliable parentage and guaranteed performance.

For the development of vegetable production, the plans of States provide for supply of improved varieties of seeds, plant protection measures and technical advice. Arrangements are also being made for certification of vegetable seeds. Development of fruit and vegetable preservation has been assisted for some years past through subsidy on tinplate for fruit and vegetable products, rebate of excise duty on sugar used for exported products, and provision of training facilities, technical advice and development loans. The output of fruit and vegetable products increased from about 20,000 tons at the end of the First Plan to about 40,000 tons in 1960-61 and is expected to rise to about 100,000 tons by the end of the Third Plan. 41. Subsidiary Foods.Subsidiary foods include primarily potatoes, sweet potatoes and tapioca and other vegetables and fruits and certain processed and derived fruits. The Third Plan includes programmes for the increased production of these articles. Their greater use is intended to help diversify the pattern of food consumption and promote balanced nutrition. The Plan also includes development schemes for the conservation and effective utilisation of perishable foodstuffs through refrigerated transport, establishment of dehyderation units, cold storage and development of protein rich foods. 42. Agricultural Marketing.The total number of markets in the country is about 2500. The number of regulated markets increased from about 470 at the end of the First Plan to 725 at the end of the Second Plan. In the course of the Third Plan it is proposed to bring the remaining martets within the scheme of regulation. The programme for grading commodities under the Agricultural Produce (Grading and Marketing) Act is also being expanded. The market intelligence service now covers about 500 markets. In the Third Plan it is proposed to extend further the number of reporting centres so as to provide adequate coverage for all areas in the country and strengthen the disse-mination of market news. An increasingly important aspect of agricultural marketing is the development of co-operative marketing organisations at various levels. Programmes for the expansion of co-operative marketing have been described in an earlier chapter. 43. Storage.Programmes for the expansion of storage capacity with the Government, warehousing corporations and various co-operative organisations were initiated during the Second Plan. The Central Government has at present a total storage capacity of about 2.5 million tons, of which about a third is owned by Government. It is proposed to increase this to about 5 million tons, of which about 3.5 million tons will be owned by Government. The warehouses of the Central and State warehousing corporations have a storage capacity of about 350,000 tons; this is to be increased to over 1.6 million tons. In addition, the capacity of the godowns of cooperative marketing societies and primary societies is expected to go up from about 800,000 tons to about 2 million tons. The Plan has allotted Rs. 25 crores for the construction of additional godowns by the Government for the storage of foodgrains and Rs. 8 crores for warehousing programmes. The provision of storage capacity is a vital step in the implementation of price policies under the Plan and such further resources as may be needed will be made available. 44. Agricultural Education.Proposals in the Third Plan relating to the expansion of agricultural education and research are discuscd in the Chapters on Technical Education and Scientific and Technological Research. In the course of the Third Plan, the number of agricultural colleges will increase from 53 to 57 and the annual intake will go up from 5600 to 6200. The total requirements of agricultural graduates for the Plan period are estimated at about 20,000 and these are expected to be met. 45. During the Second Plan, an agricultural university was established at Pantnagar (Rudra-pur) in Uttar Pradesh. Further proposals for setting up agricultural universities are under examination. The view that agricultural universities have a special contribution to make towards the development of agriculture has been urged in a series of expert reports on a.ericultural education. It is pointed out that if India's agriculture is to be raised to levels comparable with those of advanced countries, agricultural education of

the traditional type,, which is not sufficiently linked with research and extension will not be adequate in relation to the complex and changing problems of the vast body of cultivators, most of them operating very small holdings. The agricultural university seeks to bring together a number of related fields of study, such as, agriculture, animal husbandry, veterinary science, dairying, basic sciences and humanities. The underlying concept is that the responsibility of the agricultural university extends beyond teaching to applied as well as fundamental research in agriculture and involves special obligations towards cultivators in the area served by the university, in particular, to discuss their problems by working with them, transmit the results of research, and bring teaching, research and extension into an integrated view of agriculture and agricultural education. 46. Agricultural Research.The Plan provides for an outlay of about Rs. 28 crores for agricultural researchabout Rs. 11 crores at the Centre and Rs. 17 crores in the States. In the past. agricultural research tended to be confined mainly to government farms and research stations and its results did not reach cultivators to any great extent. Extension activities have brought research workers into closer contact with farmers and presented them with new problems. Research organisations in the States are being strengthened for dealing with these problems. For crops like wheat, rice, millets, cotton and oilseeds, it is proposed to develop research facilities on a regional basis in addition to work undertaken in the States. The Plan provides for intensive study of irrigation practices in river valley projects and for working out of water requirements of crops, new crop rotations, and problems connected with the use of fertilisers in irrigated areas. Among the new centres of research to be established in the Third Plan arc in institute for soil science and pedology, a forage and grasslands research institute and virus research institute. 47. Agricultural Administration.In view of the large programmes of agricultural development, the need for strengthening Agricultural Departments in the States has been felt for several years. To this end a series of proposals were made three years ago by the Agricultural Administration Committee. These include strengthening of staff at various levels, revision of terms and conditions, and expansion of facilities for training, education and research. To a considerable extent, the plans of States incorporate schemes for strengthening Agricultural Departments which have been worked out in the light of the recommendations made by the Committee. However, there has been some delay in implementing proposals for strengthening State agricultural administration. It is, therefore, suggested that these should be given effect to as a matter of first priority. 48. State Farms.A Central mechanised farm with an area of about 30,000 acres was established in 1956 at Suratgarh in Rajasthan. The possibility of establishing more State farms on similar lines has been studied and it is proposed to set up one and possibly two more farms during the Third Plan. 49. Agricultural Price Policy.For achieving the high targets of agricultural production set for the Third Plan, it is important that growers should have full confidence that the additional effort and investment which are called for will yield adequate return. Changes in the prices and production of fibres during the last few years show that wide fluctuations in prices affect the growers' capacity to make sustained efforts for increasing production. The fall in prices of jute in 1958 affected production in subsequent years. The assurance of minimum remunerative prices for important cereals and cash crops like cotton, oilseeds and jute over the period of the Plan will provide the necessary incentives for increasing production, thus adding to the effectiveness of the various development programmes provided for in the Third Plan. With this object in view, decisions regarding the prices at which Government should buy and sell, should be taken sufficiently in advance of the sowing season. Where floor and ceiling prices are fixed, they should be related to the requirements of production, and the range between the minimum and maximum prices should not be too wide. 50. Cooperative marketing societies are an important means for imparting a certain degree of staying power to the growers, particularly in relation to adverse seasonal fluctuations in prices. Cooperative and State agencies for the purchase and sale of the principal agricultural commodities at appropriate stages are, therefore, a key element in the organisation needed to achieve the agricultural goals as well as the objectives of price policy set by the Third Plan.

ANNEXURE-I I.I. Gross area benefited by major and minor irrigation during Third Plan (thousand acres) State/Union Territory major irrigation 2 1557 79 minor irrigation total 3 1427 370 agricultural c.d. sector sector 4 1177 220 564 1050 1136 192 536 524 142 120 763 339 1812 812 29 6 25 14 12 5 9478 5 250 150 500 140 74 64 175 54 40 150 266 140 1133 92 25 1 11 1 8 2 3276

1 Andhra Pradesh Assam Bihar Gujarat Maharashtra Kerala Madhya Pradesh Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal Jammu and Kashmir Delhi Himachal Pradesh Manipur Tripura N.E.F.A. total

2000
864 708 255 850 241 876 946 1301 1145 1042 884 38

1064
1190 1210 56 711 578 182 270 1029 479 2945 904 54 7 36 15 20 7

12786

12754

1.2. Area benefited by soil conservation and land development during Third Plan (thousand acres) State/Union Territory 1 Andhra Pradesh Assam Bihar Gujarat Maharashtra Kerala Madhya Pradesh soil conservation on agricultural lands 2 550 29 288 1179 5000 70 1392 4500 260 Dry farming 3 2000 1 10 1200 3160 land reclamation 4 229 18 75 12 24 45 37 reclamation of saline and alkaline lands 5

Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal Jammu and Kashmir Delhi Himaehal Pradesh total

340 270 300 46 178 1067 114 7

400 540 500 500 4850 4004 100

225 22 240 2000 10 432 20

1 38 8 50 10 10

5 18 10848 20 21790 3567

203

1.3. Area under food crops to be covered with improved seeds during Third Plan (thousand acres) State/Union Territory 1 Andhra Pradesh Assam Bihar Gujarat Maharashtra Kerala Madhya Pradesh Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal Jammu and Kashmir Delhi Himachal Pradesh Manipur Pondicherry total 2 55441 1.4. Consumption of chemical fertilisers during Third Plan (thousand tons) 1960-61 2 1230 438 2618 747 2931 500 6300 7250 4869 1200 3000 4140 18961 1000 147 1 107 1965-66 3 12780 3000 11800 3025 14538 1200 15298 9450 8876 6200 9000 17000 29301 6000 240 1 395 140 9 148253

State/Union Territory

ammonium sulphate 1960-61

superphospate

muriate of potash

1965-66 1960-61 1965-66 1960-61 196566 3 524 60 400 300 581 191 200 580 300 200 280 100 990 500 14 1 1 1 2 404 5 2442 1 23 6 278* 25 5247 4 90 5 15 48 53 7 5 60 20 8 2 4 60 25 5 350 25 120 90 324 190 40 320 320 50 24 33 300 250 8 80 12 90 11 2 1 56 1 20 13 6 7

1 Andhra Pradesh Assam Bihar Gujarat Maharashtra Kerala Madhya Pradesh Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal Jammu and Kashmir Delhi Himachal Pradesh Pondicherry total

2 273 10 50 95 100 37 26 150 87 30 40 15 297 40 4 1 25 1280

*In terms of K,0 the consumption target should be 144,000 tons. The lower figure as compared to that given in paragraphs 10 and 22 is due to the fact that it does not take into account the consumption figures of other States for which information is not available. 1.5. Estimates for organic manures and green manurinfe durme Third Plan State/Union Territory urban compost 1960-61 1965-66 (000 tons) 1 Andhra Pradesh Assam Bihar Gujarat Maharashtra Kerala Madhya Pradesh Madras 2 262 8 75 118 3 334 16 177 318 447 55 365 600 rural compost 1960-61 1965-66 (000 tons) 4 9439 800 1000 246 459 94 130 1400 5 12874 900 7756 371 1055 269 1960 3000 green manuring 1960-61 1965-66 (000 tons) 6 3200 200 1095 7 4500 1000 3095 100 1022 1050 2200 6000

10
22 250 50 3000

342
22 160 400

Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal Jammu and Kashmir Delhi Himachal Pradesh Manipur . Tripura total

310 20 200 444 580 40 5

425 44 400 968 750 100 15 40

3000 2340 6100 887 56060 500 75 120 20

5380 13956 8900 269 82340 7500 100

500 1200 350 130 650

750 7000 1350 630 9000 3000 10 30 78 3

1000
2

220 35 148 148033

28

1 2987

2 5056

67 82737

11687

40818

ANNEXURE II Estimates of increase in agricultural production during Third Plan II.1 Foodgrains (lakh tons) State 1955- 1958-59 1959-60 1960-61 additional estimated percentage 56 (revised (final (anticipated) production production increase estimates) estimates) in Third at the end during Plan of Third Third Plan Plan 2 3 4 62-96 16-60 59-39 75-07 62-66 8-87 9-65 76-17 92-85 45-38 49-25 37-83 37-17 24-63 24-52 47-85 60-78 41-75 50-93 118- 133 -99 86 49-73 45-26 4-74 5-49 5-32 6-86 657 - 755 -03 94 10-55 90-31 50-96 36-27 24-47 53-67 47-26 131 -82 46-15 4-87 7-15 717-50 10-42 90-74 51-72 38-50 40-00 60-00 50-35 135-39 52-24 4-83 7-15 769-42 17-32 4-00 16-68 16-54 10-04 16-15 18-50 16-00 47-45 14-49 1-00 1-05 236 -05 79-98 14-42 107-42 68-26 48.54 56-15 78-50 66-35 182-84 66-73 5-83 8-20 1005 -47 27-0 38-4 18-4 32-0 26-1 46.5 30.8 31.8 35.1 77 .8 20.5 14-7 31.6 5 63-95 17-69 62-62 21-16 72-55 89-28 6 24-04 4-20 20-27 8-31 7 87-69 21-89 82-89 29-47 8 37-6 23-7 32-4 39-3 55-36 63-64 17-06 16-60 51-84 68-76

1 Andhra Pradesh Assam Bihar Gujarat } } Maharashtra} Kerala Madbya Pradesh Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal Jammu and Kashmir Union territories total

Estimates of increase in agricultural production during Third Plan 11-2 Cotton (thousand bales) State 1955- 1958-59 1959-60 1960-61 additional estimated percentage 56 (revised (final (anticipated) production production increase estimates) estimates) in Third at the end during Plan of Third Third Plan Plan 2 128 9 2 3 116 6 1 4 115 9 1 1533 8 279 401 465 2 800 148 67 7 3835 5 115 9 6 1106 1207 10 403 335 363 2 605 184 29 7 8 380 356 441 2 711 145 34 5 5 567 420 500 2 900 200 54 7 5098 1967 294 328 100 184 100 250 98 300 152 96 6 60 5 7 175 14 6 1400 1535 105 751 520 750 100 1200 352 150 7 7065 38-6 33-3 76-0 177-8 32-5 23-8 500 26-6 27-2 8 52-2 55-6

1 Andhra Pradcsh . Assam Bihar Gujarat } Maharashtra} Kerala Madhya Pradesh Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh Union Territories total

1921 2481

3998 4686

II-3 Sugarcane (gur) (thousand tons) Andhra Pradesh Assam Bihar Gujarat Maharashtra Kerala Madhya Pradesh Madras Mysore Orissa Punjab Rajasthan Uttar Pradesh West Bengal 33 115 335 290 92 556 45 2940 131 35 89 384 392 73 725 42 3076 117 36 106 409 384 73 857 60 3203 128 517 66 292 553 661 97 606 800 627 97 653 927 627 100 685 98 880 37 163 400 413 100 780 90 3500 128 123 20 45 31 300 30 97 101 97 130 120 90 700 59 750 120 730 129 1180 67 260 501 510 230 900 180 4200 187 19-6 20-0 6-6 31-6 34-1 81-0 59-4 25-3 23-5 1300 15-4 1000 20-0 46-1

Jammu and Kashmir Union Territories total

1 13 5979

1 15 7113

1 18 7579

1 18 8020 1943

1 18 9963 24-2

Estimates of increase in agricultural prediction during Third Plan II.4 Oilseeeds (thousand tons) State 1955- 1958-59 56 (revised estimates) 1959-60 (final estimates) 1960-61 (anticipated) additional production in Third Plan 6 558 20 66 300 321 31 125 290 175 110 115 estimated production at the end of Third Plan 7 1637 80 126 1350 1039 51 686 1340 875 200 300 percentage increase during Third Plan 8 51-7 33.3 110.0 28.6 44.7 155.0 22.3 27.6 25-0 122-2 62-2

1 Andhra Pradesh Assam Bihar Gujarat } Maharyshtra} Kerala Madhya Pradesh Madras Mysore Orissa Punjab Rajasthan West Bengal Jammu and Kashmir Union Territories total

2 1188 56 56 1202 20 454 870 503 65 149 252 49 19 4 5643

3 1109 66 78 1925 22 621 939 574 54 186

4 1080 44 66 1588 17 473

5 1079 60 60 1050 718 20 561 1050 700 90 185

945
580 54 165

268
996 55 11 3 6907

198
1089

276
1180

110
485

386
1675

40.0
41-9

Uttar Pradesh. 756

39
11 3 6352

40
11 4 7084 11-5- Jute (thousand bales)

20

60
11 4

52.0

2736

9820

38-6

Assam Bihar Orissa Uttar Pradesh West Bengal

1212 589 245 89 2013

989 1243 177 95 2596

1114 957 212 92 2170

813 400 839 261 1987 441 400 30 1213 1280 661 119 49-2 52-6 153-3 33 -7

Tripura total

50 4198

58 5158

60 4606

41 4030

840 2151

2827 6181

42-3 53-4

4th Five Year Plan

Chapter 7:

AGRICULTURE
The eight years between the commencement of the Third Plan and the Fourth have been years of great significance for Indian agriculture. This is particuly true of the 'after half of the period. It has been marked by near disaster and mrch achievement more importantly, it has heid out great promise for the future The farmer responded favourably to a combination of good prices, high-yielding seeds and adequate fertilisers. He took t:' improved farm practicss as readily as to non -traditional farm input Grornd water was put to intensive use Institutional credit was sought to be expanded. In viewof the urgency of the need, it was decided to direct state effort in the first instance to those ;ireas which were best endowed for food production. This was the basis of what has come to be known as the new strategy of agricultural development. Evolution of Agricultural Strategy 7.2. The first stage of the new strategy pertained to the Intensive Agricultural District Programme. It was smarted in 1960-61 in three districts and was subsequently extended by stages to another thirteen. While the performance varied, it clearly demonstrated bosh the value of the "package" approach and 'he advantage cf concentrating effort in specific aress. In 1964-65 and subsequent years, a modified version of the same approach was extended to several other parts of the country in the form of the Intensive Agricultural Area Programme. The main concern, of the Programme was with specific crops and the extension staff employed was on 2 reduced scale. 7.3. While both the Intensive Agricultural District and Intensive Agricultural Area Programmes were concerned v/ith the promotion of intensive agriculture, they operated within the limitations set by existing crop varieties which had relatively low response to ferdliers. A major change occurred with the in'rodi'ction of the high-yielding varieties. Hybridisation techniques for maize and millets had been initiated as early as 1960- Hybrid seeds began to be wideiy adopted by 1963. In whe, a beginning of great importance was made m 1963-64 by trying out the Maxican dwarf varieties on a selected basis. Paddy seeds of exotic varieties such as Tr-ichung Native-1 were introduced in 1965. The propagation of various high-yielding varieties over fairly large areas was taken up as a full fledged programme from Kharif 1966 onwards. By 1967-68, 6.04 million hcctaies were brought within the purview of this programme. On the eve of th" Fourth Plan, the coverage estimated was 9.2 million hectares. 7.4. The highyielding varieties programme has so far been taken up for five crops, namely, wheat, paddy, bajra, maize and jowar. Among these crops, the 'nest striking success has been achieved in v.hcat. in 1 sone of the dwarf varieties, a yield of 5 to jionses per hectare has bee; recorded in farmers' fields as against a normal yield of about 2 tonnes in irrigated areas. Similar, though not as specta-rishr. increases have been achieved for jowar, bajra ;;nd maize. Paddy has proved more difficult. ADT- a variety propagated in Tanjore district has given a, average yield of four to five tonnes of paddy hectare. On the other hand, certain exotic varieties of paddy when initially introduced, ran in;o trouble on account of their susceptibility to perios and bacterial diseases. There was also a certain amount of consumer resistance. To overcome these dimcuities, research in rice breeding was intensified. India Coordinated Project of Rice Research has recently evolved and released a few varieties cf considerable premise.

7.5. The rsew strategy is concerned not only with hiyher yieid but with greater intensity of cropping. Entirely new crop rotations have been made possible by [he development cf short duration varieties of p':.ddy, maize, jowar and bajra suited to different agro-climatic conditions. Among other crops included in the rotations are barley, ragi, oilseeds, potato aild vegetables. The few multi-cropping programme was taken up in 1967-68. It is provisionally estimated that, by the end of 1968-69, about 6 million Iicc[ares was covered by this programme. 7.6. In recent years, new emphasis has come to be attached to the role of agricultural technology as a major input of agricultural production. A number of steps have been taken to facilitate organisation and development of agricultural research. The Indian Council of Agricultural Research was reorganised in 1965. To it were transferred the research institutes which had been previously administered by the Union Department of Agriculture either directly or through the various Commodity Committees. An important step was the establishment of agricultural universities which are conceived as combining the functions cf education, research ard extension education. Nine agricultural universities have so far been set up. Another development of importance is the organisation of all-India coordinated research projects. Thirtyeight such projects have 'o far been taken up by the Indian Council of Agricultural Research. They constitute a significant advance towa'ds the planning of agricultural research on a national basis. 7.7. In view of the importance assumed by inputs and services such as improved Seeds, chemical fertilisers, plant protection, implements ard machinery, irrigation facilities and agricultural credit, several new public institutions were promoted and provided with funds to lend support to agricultural prodrction programmes. Among these institutions vikas the National Seeds Corporation which was set up in 1963 with responsibilities in ihe field of seed production, particularly the foundation stock of Mph-yie'ding varieties. Starting with 1965.. fifteen poTo-ind'.'s'r^es corporations have been established h different States. They are ioinf ventures of the Central and SWe Governments charged with the prirnirv obiect of supplying and servicing agricultural machinery. For promoting programmes for production, marketing, processing and storage of agricultural produce through cooperative societies, another public agency, the Nation Co-operative Development Corporation, was set vy on a statutory basis in 1963. In the same year the Agricultural Refinance Corporation was established to nr-'-vide refinancing facilities to land developnent banks and commercial banks for financing schemes of agricultural development. 7.8. As a result of various measures taken, there was significant increase in the use of agricultural inputs and the volume of cooperative credit as will be seen from the table below : Table.1 Progress in the Use of Agricultural Inputs sl.no. tem (0) (1) chemical fertilisers 1 nitrogenous (N) 2 phospbatic (P.0) 3 potass'c (KsOt 4 plant protection implements and machinery 5 tractors 6 power tillers 7 pump setselectric 8 pup setsdiesd lounas dvanced throitfli copppralive 9 shor and medium term R crores
s.

unit (2) '000 tunnes '000 lonn.es '000 tonnes '000 hectares nos nos '000 "os '000 "os

1960-61. (3) 210 70 26 6500 HOOl 191 230 '203

1968-69 4) 1145 391 1.60 40000 91 roo 20000 ''.8' 650 400

10 long term.

Rs. crores

12 17.0

7.9. The importance .of guaranteed minin price' an incentive to agricultural producwis given pointed recognition in the new strategy. A policy of support prices for foodgrains came to "capted thoughout the country in 1964. In the s"bsequenl: year, the Agricultural Prices Commission was set up to advise Government from time to time on appropriate price policies for agricultural ron-imodities. In the same year was also established the Food Corpor?tion of India which, for the first , sought to provide in all-India machinery for pa.nchas? of foodgrains. The purchase could fake place in different, contexts, including procurement of shortage and price support in times of the drought yearrs of 1965-66 and 1966-67. ihe policy of prices sported remaired mostly inc-nerativp on account of the prevailing high prices.1967-68, following a bumper wheit crop, pur-chf-e operations were undertaken on a large scale in Puniab Harvana under the auspices of the rporation and the Punjab Cooperative Marke Federation. These purchases were generally on the basis of procurement prices which were appreciably above the minimum support prices. Hoy/ever, in some markets in IJttar Prades in the absence of adequate machinery for purchase, the fm'e.rs failed to get procurement prices for their produce Jute was another commodity for which prices were fixed, bi't these failed to be eHective on recount of inadeouate purchase organistion in the field. Statutory price controls on cotton were lifted dunne 1967-68 and minimum support prices were fixed at a level higher than previous floor prices. Durine 1968-69 this policy was continued. Review of Agricultural Production 7.10. Agricultural production has followed an erratic trend. After relative stagnation in the first three years of the Third Plan, there was a marked increase in 1964-65 when the output of practically crops reached new record levels. The aggregate index of production in this year was 159.4 (1949-50= 100) about 12 per cent higher than in 1960-61. The subsequent two years witnessed a precipitous fall of production on account of unprecedented drought, in 1965-66. food grains production fell by 20 per cent- The index of aggregate output was lower by about a sixth. In 1966-67. while there was a marginal recovery in output of foodgrains and some commercial crops, the overall index was still somewhat below the level achieved in 1965-66. Thereafter, there was a marked and welcome spurt in sOTicultural production. The foodgrain output in 1967-68 reached 95.1 million tonnes. The production of other important crops also recovered frona the abnormally low level of 1965-66 but, in many cases, they did not reach the levels achieved in 1964-65. Altogether, the index of production in 1967-68 was estimated to be 161.0 i.e. about 1 per cew higher than in 1964-65. During 1968-69, foodgrains production registered a slight decline of per cent over the previous year on account of somewhat adverse weaiher conditions. The production cf oth.r important crops, except sugarc:ine and potato, was also iower. The aggregate index for 1968-69 came down to 158.7. 7.11. The following table indicates the rates of growth for various crops for 1949-50 to 1968-69. Table 2 : All India Compouds Rates of growth of Agricultural production Area under Crops and Agricultural Productivity during 1949-50 to 1968-69. (per cent per annuam) Sl.No. (0) 1 2 3 4 5 6 crop (1) rice jowar bajra maize ragi wheat production (2) 3.02 2 30 2.36 3.88 1.88 4 20 area (3) 1 22 0.86 1.14 2.79 0,36 2.26 productivity (4) 1.78 1,42 1.21 1,05 1.51 1.90

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

barley releals gram pulses fondgrains groundnut sesainum . rapesecd and mustard oil.seeds cotton jute fibres tea coffee sugarcane tobacco non-foodgrains all-crops

( -)0.12 3.00 1.77 1.16 2.79 3,51 (-)0.34 3.34 2 86 3.93 2.29 3.49 1.97 5.96 3.97 2.55 3.18 2.92

(-)0.74 1 17 0.77 1 26 1 19 3.45 0.60 2.36 2.31 1.91 2.03 1.94 0.69 2.32 2.74 1.37 2 19 1.37

0 62 182 0.99 (-)9.10 1 6.5 0.06 (-)0.93 0.95 0 53 1.98 0.27 1 52 1.27 3.56 1.20 1.17 0.97 1.53

7.12. Among foodgrains, there were significant variations in the performance of individual crop3. The output of rice, wheat and maize have grown appreciably faster than of millets. On the other ba;id. the output of pulses, which are of particular iinpcnance from the nutritional view point, has increased only about less than half as fast as that of cereals. What is more disturbing is the decline iis the average output per hectare of pulses. 7.13. The output of commercial crops, as distinguished from rate of yiejd, has generally grown faster the in that of foodgrains. The trend growth rate of production in cotton was 3.93 per cent a year. sugarcane 3.97 per cent and groundnut 3.51 per Lent, and rape and mustard 3.34 per cent. Oi'sesds other than groundnut, rape and mustard ps ai'o iute and tobacco grew at a relatively slow r;ne The faster expansion of commercial crops production was derived largely from inc ease in areas. With the exception of cotton, the output per hectare of those crops has grown much slower than of cereals. 7.14. Subject to the obvious limitations which appiy to any short-term analysis of production trends, the following table indicates compound growth rates for production, area and productivity of al! crops during the various Plan psriods : Table 3 : Compound Rates of Increase and Production, Area and Productivity dfferent Plan Periods for all Crops (per cent per annum) Sl. No. plan period (0) (1) 1 first plan (1951-52 to 1955-56) production (2) 4.1 area (3) 2.6 1.3 0.6 productivity (4) 1.4 1.8 2.7

2 second plan (1956- 3.1 57 to 1960-61) 3 third plan (1961-62 3.3

to 1964-65) Note : The above estimates are calculated for the First Plan for the triennium ending 1951-52 to triennium ending 1956-57 and the Second Plan for triennium ending 1956-57 to triennium ending 1961-62 and for the Third Plan triennium during 1961-62 to 1964-65 (actuals). Aggregate agricultural production rose at an average" of 2.92 per cent per annum, foodgrains at 2.79 per cent and non-foodgrains crops at 3.18 per cent. Somewhat over half of the trend increase in total crop production was derived from higher yields per hectare. The remainder represents the contribution of area growth, estimated at about 1.37 per cent per annum. The rate of yield improvement was much faster for foodgrain crops (1.65 per cent per annum) than for non-foodgrain crops (0.97 per cent per annum). Judging by the relative movement of area and production in the last few years, there would appear to be a marked deceleration in area growth There are indications that the rate of yield improvement in foodgrains has accelerated significantly. For the commercial crops, there does not yet seem to be a comparable improvement. This would show that, even before the introduction of high-yielding varieties, the productivity of agriculture had consistently improved over each Plan period. It is the growth in area which has declined. 7.15. While the variations in growth performance of different crops in the past have been significant, the variations in the growth rates achieved in different regions were even more striking. Statewise compound growth rates up to the end of 1968-69 have not so far been computed. The following table, however, shows State compound growth rates of agricultural production, area and productivity from 1952-53 to 1964-65 : Table 4 : State-wise Compuond Growth Rates of Agricultural Production, Area under Crops and Agricultural Productivity (During 1952-53 to 1964-65. (per cent per annum) Sl. No. (0) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 state (1) Punjab Gujarat Tami! Nadu Mysore Bihar Maharashtra Rajaslhan Andhra Pradesh Madhya Pradesh Orissa Kerala West Bengal Uttar Fradesli Assam All-India production (2) 4.56 4.55 4.17 3.54 2.97 2.93 2.74 2.71 2.49 2.48 2.27 1 .94 1.66 1.17 3.01 area (3) 1.90 0.45 1.10 0,81 0.7! 0 44 2.85 0.26 1.28 0.81 1.30 0.59 0.72 1.25 1 21 productivity (4) 2.61 4.09 3.04 2 71 2,25 2.45 0.11 2.45 1.21 1.66 0.96 1.34 0.94 ()0.08 1.7

Note : Figures for Jammu and Kashmir and Nagaland not available. Figures for Punjab relate to erstwhile Punjab.

It would be seen that a number of States in particular Punjab, Gujarat and Tamil Nadu, recorded increases in production appreciably higher than the national average. Significantly the rate of yield improvement in several states was also higher in comparison with the all-India average. In some districts in Punjab and Tamil Nadu, production increased by as much as 7 per cent a year and several districts spread all over the country recorded increases in production of about 5 per cent per annum. Objectives 7.16. In the agricultural sector, the Fourth Plan has two main objectives. The first objective is to provide the conditions necessary for a sustained increase of about 5 per cent per annum over the next decade. The second objective is to enable as large a section of the rural population as possible. including the small cultivator, the farmer in dry areas and the agricultural labourer, to participate in development and share its benefits. Accordingly. the priority programmes of development in agriculture fall broadly into two categories, namely, those which aim at maximising production and those which aim at remedying imbalances. 7.17. The creation of conditions nece-.sary for a five per cent agricultural growth is basic to the approach of the Fourth Piai. The crucial position of agriculture and the extreme urgency of achieving rapid growth in production have been brought home, more than ever before, by the experience of recent years. The pace of development in the agricultural sector i'e';s a limit to the growth of industry, of exports, and of the economy as a whole and constitutes a major condition for achieving economic and social sfabiliiy and improving the levels of living and nutrition for the mass of people. The success of the Fourth Plan will, therefore, be judged, above al'i. by performance in agriculture. Targets of Production 7.18. The specific targets of production corresponding to the overall objectives of agricultural growth have to be related to the demand likely to be generated by the projected growth of per capita income and consumption as well as the expected growth of population. An important consideration in detenninirg the targets is the objective of eliminating imports of foodgrains on corcessiwal terms. in the case of long staple cotton which will continue to be imported for some time more, the aim is to ens'^'e that imports of other agricultural commodities should be reduced as soon as possible. At the same time the targets have been determined after the consideration of the technical and economic feasibility of expanding production in the course of the next five years. While a detailed commodity-wise Statement is given at Annexure I, a few selected targets for foodgrains and major commercial crops together with comparative figures of estimated base-level are indicated below : Table 5 :Selected Targets of Crop Production sl.no. (0) 1 2 3 4 5 item (1) foodgrains jute cotton oilseeds sugarcane (gur) unit (2) million tonnes mill. bales mi!l. bales mill. tonnes mill. tonnes base level (3) 98 6.2 6 8.5 12 fourth plan target (4) 129 7.4 8 10.5 15

Strategy of Production 7.19. The rate of increase in production of food-grains and major commercial crops envisaged iu much higher than that accomplished in the past. Hence it is necessary to spell out, in some details, the strategy

for realising the production targets. This strategy places very little reliance on bringing additional land under cultivation. The potentially arable area in the country is estimated at about 175 million hectares. of this, nearly 85 per cent is under cultivation. Thus there is a virtual exhaustion of uncommitted land resources. In the Fourth Plan, it is anticipated that the addition of the net sown area will be onjy about one million hectares which is the target of land reclamation. In this confext, the strategy of production is primarily dependent on intensive agriculture and consists of the fol'owi"g main elements :

1. 2. 3. 4. 5. 6. 7. 8.

coordinated research in respect of all important crops; continued expansion of irrigation faciiiiies ard recrie-ntation of irrigation practices so as to ensure optimum and integrated rse of ground and surface water; imprvement in the utilisation of existing irrigation pote'KiRl through special programmes; expansion in the supply of fertilisers, plant protection material, farm machinery and credit; full exploitation of the possibilities of raising yields provided by the new seed varieties in the case / of cereals; intensive efforts in selected suitable areas for raising the yield levels of major commercial crops; measures to increase intensity of cropping;and improvement in the agricultural marketing system in the interests of the producer along with assurance of minimum prices for major agricultural commodities.

7.20. For achieving the targeted level of cereals production, the high-yielding varieties programme envisaged in the Fourth Plan is as under : Table 6 :Targets of High- Yielding Varieties Programmes (million hectares) sl. no (0) 1 2 3 4 5 6 group (1) paddy wheat maize jowar bajra total base level (!968- cumulative level (1973-74) 69) (2) 2.6 4.8 0.4 0.7 0.7 9.2 (3) 10.1 7.7 1.2 3.2 2.8 25 0 additional target (4) 7.5 2.9 0.8 2.5 2.1 15 8

The other development programmes which will help in achieving the production targets of both fo.idgrains and commercial crops are of the following order : Table-7 Target of other Selected Development Programmes Sl.No (0) 1 2 3 4 (1) multiple cropping soi! conservati Oil land reclamation major and medium irrigation (utilisation) additional target (million hectares) (2) 9.0 5.6 1.0 3.9

minor irrigation 5 6 7 new area replacement of depreciated area supplemental irrigation/stabilisation 3.2 1.6 2.4

The above mentioned dimersions of the various programmes have been arrived at on the basis of a careful assessment of ths scope in each State. The State targets, in turn have been sought to be built up on the basis of potential in various districts and hence represent a feasible set of programmes. 7.21. Success in the achievement of foodgrains target is principally Jinked with the success of highyielding; varieties and multiple cropping programmes. In support of these, there will be schemes f major and major irrigation, including large-scale energisation of pumpsets through rural electrification and integrated use of ground and surface water;supply 'of inputs for plant nutrition and protection, and 'if machinery for farm operations; reorganisation of credit, short, medium and long; and stren the of the rural 1 infrastructure in ether 'importan ways including more village roads, better marketing facilities and adequate storage. There also he agricultural research, extension and education including farmers' education and field demonstration. Substantial allocations have been made s 0 the more strategic financial and other institutions, old and new connected with these programmes. Some of the relevant institutions are: cooperative banks; credit societies, marketing societies and National Cooperative Development Corporation (for credit, marketing, processing and storage); the Agriculture Refinance Corporation, land development banks and Rural Electrification Corporation (for Sand reclamation, soil conservation, minor irrigation and energisation of pumpsets); agricultural credit corporations; agroindustries corporations (in connection with agricultural machinery); Food Corporation and Fertiliser Credit Guarantee Corporation (for food and fertiliser, as also storage); the Central Warehousing Corporation and State Ware ('for storage). Assured of by research and know the credit, inputs, services and other the farme'- can be trusted to achieve in the next few years the level of production envisaged in the Plan. Financial Outlays 7.22. A statement showing public sector outlays tor agriculture and allied programmes is given as Annexure III. Most of the programmes are within the purview of State Governments. Thus, cut of un aggregate outlay, of Rs. 2728 crores in the public sector, programmes of the order of Rs. 1426 crores are in the State Plan Sector. Moreover a number of programmes in the Central Sector such as agricultural research and agricultural education arc designed to provide the necessary infrastructure for different schemes in the State Plans or to improve the efficiency of the corresponding sectoral programmes in the State sector. Further, the entire provision of Rs. 324 crores to support financial institutions is intended exclusively for programmes to be implemented in the States. In brief, care has been taken to ensure the provisions made for Central and Centrally sponsored schemes in the Agricultural sector go to fill the crucial gaps in the Stale Plans. 7.23. Besides direct Plan outlays, it is contemplated that investment in agriculture will flow from other sources, both institutional and private. On the institutional side, it is expected that the operation of land development banks will be considerably expanded. A similar expansion is envisaged for the Agricultural Refinance Corporation and the agro-industries corporations. In addition, agricultural credit corporations are proposed to be set up in States where cooperative credit agencies are weak. It is also contemplated that a new credit guarantee corporation will come into operation to facilitate flow of finance for distribution of fertilisers and allied inputs. Commercial banks are expected increasingly to cater to the agricultural sector and provide tinance both for investment and production. As a result of the availabiliy of funds from these institutional sources as also a progressive shift towards self-financing by the medium and large farmers, it is expected that in the Fourth Plan, in addition to public sector outlay, private invesment of the order of Rs. 1600 crores will be made in agriculture. Agricultural Research and Education

7.24. The Indian Council of Agricultural Research, which is the apex organisation for sponsoring, coordinating and directing agricultural research and education in the country, has been re-organised in recent years. Since. 1965, steps have been taken to place all the Central research institutions and those under the Commodity Committees under K.AR. The Council now has 25 research insititutes or research stations and eight soil conservation reseurch and training centres under it. In the Fourth Plan, the Council will be further strengthened and will be placed in possession of adequate funds. A sum of Rs. 85 crores has been provided in the Central sector of the Plan for agricultural research and education. Action is also contemplated to enable 1CAR to raise additional funds under the Agricultural Produce Cess Act. 7.25. Application of science and technology to agriculture being the key-note of the strategy for the Fourth Plan, agricultural research has been accorded an important place in the Plan. A provision of Rs. 55 crores has been made in the Central sector of the Plan for agricultural research. This is exclusive of the provisions made for agricultural research in various State Plans. It is contemplated that the principal agencies involved in the research programme will be the central research institutes, agricultural universities and, to a limited extent, research stations run by agricultural departments in some States. From the point of view of organisation of agricultural research, care will be necessary, to ensure that there is no overlapping of effort or proliferation of institutions. Existing research substations will, as far as possible, be tied up with agricultural universities where these have been established. No new central research institutes will ordinarily be sought to be set up in the jurisdiction of agricultural universities. Similarly, in States which have already set up agricultural universities, it will be necessary to ensure that, apart from leaching, research is also transferred to the university from the State Department of Agriculture. 7.26. An important feature of agricultural research will be the All-India coordinated research projects. These call for a inulddisciplinary approach as well as iniec-institutionul cooperation. Plant breeders, geneticists, agronomists, agricultural chemists and plant protection scientists are required to work in close collaboration so as to ensure that the disciplines have a combind impact. Again, each project envisages research scientists in the central and State institutes and agricultural universities working as a team with a project coordinator, appointed by ICAR, acting as a research leader fostering cooperation and coordination of reesarch carried out by various participating institutions. The system also provides a built in mechanism for continuous assessment of achievements and impediments in the form of an annual workshop, attended by participating scientists. 7.27. The idea of a coordinated research project was tried out as early as 1957 when a coordinated maize breeding scheme was initiated. Since 1965, a systematic effort has been made to formulate other coordinated projects. On the eve of the Fourth Plan, 38 projects had been sanctioned und 32 projects were in operation. These projects will necessarily spill over to the Fourth Plan. In addition, it is contemplated that 44 new All-India co-ordinated research projects will be taken up. A total provision of Rs. 34.70 crorcs has been included in the Fourth Plan by way of spill-over as well as for new projects. 7.28. In a later section of this chapter, an indication will be given of the specitic cropwise problems to which agricultural research will be sought to be directed. The scope of coordinated research projects would be widened so as to cover all important food and commercial crops and to take care of the various problems coming in the wake of the in irod uc-tion of high-yielding varieties. Research on pulses did not get enough emphasis in the past. This will be under taken for the special benefit of the rainfed areas. Emphasis will be laid on research in dry farming. Its details are given in a subsequent section of this chapter. Research will also be directed to the problems of plant protection consequent on the use of the high-yielding varieties. Widespread use of the new varieties will bring with it a new order of demands on account of depletion of various nutrients in the soil. Problems connected with the soil structure, including that of maintenance and the .continued ability to produce high-yields will call for wide-ranging research on the use of plant har-mones as well as the study of soil and crop chemistry. Research will have to be harnessed to problems of post-harvest technology such as threshing, drying, storage and processing. 7.29. A panel on irrigated farming was set up recently to review in the light of long-term scientific and technological considerations, the programmes which are already in operation, and to identify the main

areas in which further research or investigation in needed for the formulation of long-term policies in regard to different aspects of farming in irrigated and rainfall areas. The panel has made a number of recommendations. Among the problems dealt with are those pertaining to humid areas such as Kerala, Assam, Tripura and Naga-land. The panel has also suggested work on breeding of varieties which can be harvested before incidence of floods which are a recurring feature in some of the areas of North-East India. Another identified problem area relates to eight million hectares of land which are inundated by sea water, the development of techniques for the use of sea water as well as the assessment of the economics of the use of de-salinated water need to be studied in this context. These and other aspects indicated by the panel have been taken cognizance of and requisite funds provided in the Plan. 7.30. One significant area of research will relate to soil, plant and water relationship. Studies already made reveal a high response to correct timing of water application. There is considerable room for further stud es of plant evaporation/transpiration ratios and the economies of improved water management. Other connected fields of research are problems of reconciling agricultural needs and engineering practices. Among the important developments envisaged are the establishment of a water technology centre at IARI and a Central Soil Salinity Research Institute at Kamal. 7.31. In the sphere of agricultural education, the nine agricultural universities already set up will be strengthened. Some of these universities have started making notable contributions to agricultural education and research. A number of them, however, continue to suffer from inadequate facilities. In the Fourth Plan, efforts will be made to rectify these deficiencies. In addition, six new universities are likely to be established. A sum of Rs. 21.5 crores has been allocated in the Fourth Flan to enable ICAR to assist agricultural universities in regard to specified developmental items. For the balance, it is contemplated that the agricultural universities will be assisted by the concerned States from the State Plans. 7.32. During the Fourth Plan period, while funds have been allocated to agricultural universities as also lor strengthening post-graduate and undergraduate colleges, it will be necessary to ensure that educational planning broadly conforms to the likely demand for trained agricultural manpower. This caution has become essential in view of the fact that, in recent years, there has been a large expansion in the number of agricultural veterinary and agricultural engineering colleges with the result that, in respect of certain categories such as agricultural engineers and veterinaries the supply has outstripped available demand. In order to make optimal use of existing facilities, it is contemplated that ICAR will take requisite measures so as to ensure maximum inter-institutional cooperation and avoidance of additions to underutilised capacity. Steps would have to be taken to improve the; standard of agricultural colleges that have mushroomed in some States. In certain cases, such colleges may be converted info farmers' training institutions. Where it is not feasible to take such remedial measuers, these may have to be closed down. Farmers' Training and Education 7.33. A special scheme of farmers' training was introduced on a pilot basis in 1966-67 in five districts. The three components of the scheme were (i) functional literacy, (ii) farm broadcasts, and (ni farmers' training. The intention was to try out arrangements for intensive training and information in selected districts having potential for optimal use. Later on, the scheme was extended so as increase die number of farmers' training centres to 25 in 1967-68 and 50 in 1968-69. A recent evaluation, however, showed that only 27 centres were functioning effectively. 7.34. In the Fourth Plan, farmers' education and training is sought to be given a new orientation consistent with the requirements of a complex and technology-based production programme. The principal element is a programme of national demonstrations which has been included in the Fourth Plan with an outlay of Rs. 2.45 crores; Tills programme envisages organisation of demonstrations in 100 selected High-yielding Varieties Programme districts at the rate of 15 per district. These demonstrations are to be carried out in each district under a team of four subject-matter specialists in soils, agronomy, plan protection and agricultural engineering. The demonstrations will seek to establish the production

potentiality of each unit area of land per year through multiple cropping supported by a package of improved be conducted by the State agricultural extension personnel. Other components of the farmers' education programme in the Fourth Plan relate to dissemination of agr -cultural informamtion through audio-visual aids and formation of farmers' discussion groups. The exchange programme of farmers wilt also be enlarged. Material Inputs 7.35. Adequate and timely availability of agricultural inputs is a key factor, and measures which have a bearing on this have to be executed in an integrated manner. Firstly efforts will be made to ensure adequate supplies through indigenous production supplemented, where necessary, by imports. Secondly, through appropriate measure in all the sectorspublic, private and co-operative--a widespread network of retail distributors will be sought to be established so that fertiliser aad other inputs are within the easy reach of the farmer. Thirdly, action will be taken to facilitate distribution by providing adequate credit 10 cooperative and private distributing agencies. Among other steps to this end, a Fertiliser Credit Guarantee Corporation is proposed to be set up as a subsidiary of the Researve Bank for guaranteeing distribution credit for chemical fertilisers and other approved agricultural inputs. Finally, attention will bo paid by provision of storage facilities both at the wholesale and retail points. While these measures will aim at substantially stepping up the consumption of chemical fertilisers, seeds and plant protection material, a distinct change will be made in present policy in so far as no subsidy wilt be available for such inputs except for backward and inaccessible areas and, to a limited extent, for certain export-oriented crops. Improved Seeds 7.36. In the context of intensive agriculture, particularly the HVP programme, quality seeds are the basis of other developments. Special attention will therefore be devoted to multiplication and distribution of improved seeds. The existing seeds.production and distribution arrangements have been .subjected to a detailed scrutiny by the Seed Review Team which reported in 1968. A number of shortcomings have come to light. These include nonavailability of quality breeders stock in adequate quantities as well as insufficiency of and lack of appropriate storage facilities on seed farms. The seed mulliplcation programme has not always yielded stock of the requisite purity. There have also been short-comings in regard to the processing of seeds and the distribution arrangements. The recommendations made by the Seed Review Team aiming at remedying some of these defects. 7.37. It is intended to cover nearly 72 million hectares under improved seeds about 25 million hectares under HVP, 15 million hectares under multiple cropping and about 8 million hectares in assured rainfall areas and 24 million hectares in dry cultivated areas. For the accomplishment of Ins programme, the following may be regarded as the main components:

i. ii. iii. iv.

Continuous supply of breeder stock Adequate arrangements for production of improved seeds Arrangements for seeds processing and storage Seed certification

Each of these aspects will be given requisite attention. 7.38. As far as the breeders seed is concerned, it will be sought to be produced in adequate quantities with the help of 1CAR and the National Seeds Corporation. About 140 hectares will be required for this purpose in a number of research stations. Foundation seeds of the high-yielding varieties are intended to be produced by the National Seeds Corporation and selected agricultural universities. For production of certified seed a number of agencies will be involved, including Stati: Seed Farms, Central Government Seed Farms, private seed producers and Seed Producers' Cooperatives. The establishment of State

Government seed farms was taken up as early as in the First Plan. The Seed Review Team has broughtout a number of deficiencies in these farms regarding the size of the farms, availability of irrigation facilities and storage arrangements. In the Fourth Plan, provisions have been made in the State Plans for im--irovement and rationalisation of these farms. In addition to the seed farms established by State Governments, the Central Government has established large, sized farmsi for reclamation of land, Recently, the focus of their activities has been shifted to production of seeds. So far six farms have been set up. In the Fourth Plan, two more farms are proposed to be established. In the private sector, [he seed industry has made distinct progress. It is expected that, in coming years, an enlarged role will be played by private seed producers. Finally, a beginning has been made in the organisation of-seed producers' cooperative through a scheme sponsored by National Cooperative Development Corporation. So far, eleven cooperatives have come into operation. It is contemplated that about 30 cooperatives will be set up in the Fourth Plan period. 7.39. In the sphere of seed production, an important project in the Fourth Plan period will be ihe Terai Seed Development Project. Under it, the production of quality seeds of high yielding varieties will be taken up over an area of 16000 hectares with double cropping. It is estimated that about 56000 tonnes of quality seeds per annum of HYP wheat, rice maize, sorghum and pearl millets would be available on completion of this project in 1973. 7.40. In the absence of proper storage, seed is likely to lose germination quality thereby resulting in pour plant population. This problem has become s.cute with the introduction of short-duration varieties whose grains tend to sprout at maturity during the wet season. In this context it is proposed to establish suitable seed godowns during the Plan period. Another essential ancillary is seed processing. It is estimated that about 350 processing plains each with a capacity of 1000 tonnes ojE seeds over two seasons would be required by the end of the Plan period. About 100 plants have already been set up. Installation of the remaining plants will be encouraged in the public, private and cooperative sectors. 7.41. Seed certification with its essential elements of field inspection of crops for varietal purity, proper isolation distance and supervision at harvesting, has been generally lacking so far. In the Fourth Plan, a suitable seed certification machinery would be brought into being. Even though the Seeds Act was passed in 1966, certain sections of the Act have been brought into operation only with efl'ect from October, 1969. A Central Seeds Committee has been set up under the Act.'Seed testing laboratories will be organised and suitable training arrangements made for personnel in charge of the administration of the Seeds Act. 7.42. The outlook for the Fourth Plan is generally one of adequacy of seed supply. In fact, a small quantity of seed is already being exported horn the country. The crux of the problem in coming years will lie in ensuring quality. There is room for considerable concern about maintenance of breeders stock with a high genetic purity. The same concern applies to foundation seed and eventually certified seed. The hybrids in particular present a relatively serious problem. This is on account of the seed producing process which requires high level skill. The recent development of composites will perhaps help in this regard. However, quality maintenance of seeds needs to be given high priority by the National Seeds Corporation and the Stale Governments. Fertilisers and Manures 7.43. A significant increase in fertiliser consumption is a crucial element in the agricultural strategy. It is necessary to get the optimum yield out of the new cereal varieties which are highly responsive to increased dosage of fertilisation. Chemical fertilisers are also envisaged as an important factor in the package programmes for development of commercial crops. High cropping intensity visualised under the multiple cropping programme also pre-supposes a high level of the use of plant nutrients. Finally, increased use of fertiliser is contemplated in dry farming in the form of foliar spraying.

7.44. In the Draft Fourth Plan, a target of consumption of 3.7 million tonnes of N, 1.8 million tonnes of PaOc and 1.1 million tonnes of KaO was indicated. This target has been reconsidered in the light of the latest available data on fertiliser response and other factors. A revised target has been fixed at 3.2 million tonnes of N, 1.4 million tonnes of P^Os and 0.9 million tonnes of KaO. Considering that the consumption in the last year (1968-69 is estimated at 1.1 million tonnes of N, 0.39 million tonnes of PaO; and 0.16 million lonnes of KaO, even the revised Fourth Plan target will require more than trebling the pre-Plan level of fertiliser consumption. 7.45. While, during 1966-67 and 1967-68, there was a sharp upward trend in fertiliser consumption, there has in 1968-69 been some deceleration. The main factors inhibiting increase in fertiliser use are essentially those on the demand side. The measures contemplated in the Fourth Plan to stimulate demand and facilitate supply of fertilisers are improvement and extension of soil-testing facilities, increased use of soil conditioners, intensification of extension and sales promotion, increase in the number of retail points, and increased availability of distribution credit. Measures such as increase in the supply of production credit are also expected to make for enhanced fertiliser consumption. 7.46. Increase in consumption of fertiliser is partly linked to the willingness of the farmers to step up the dosage per hectare towards the optimum level. One of the crucial aids is availability of advice on characteristics of soil. In this context the growth in demand for ferfilser is dependent on the development of soil-testing facilities. At the end of 1968-69, there were 65 soil-testing laboratories all over the country with a total annual capacity of handling 1.08 million samples. It is estimated that, currently, only about 46 per cent of the available capacity is being utilised. Apart from under-utilisation, other areas of concern in this regard relate to the faulty manner of drawing the samples and consequently poor quality of soil analysis and lack of effective follow-up action by the extension agency. It will be necessary to take measures to rectify these shortcomings and also expand the number of soil-testing laboratories, some of them mobile. 7.47: Among the factors accounting for low crop yields in many of the areas are soil acidity and soil alkalinity. To remedy these deficiencies, application of soil amendments such as lime, gypsum and basic slag are generally recommended. Based on available information, areas prone to acidity and alkalinity have been mapped out and some progress has been made in popularising the use of soil conditioners. Many State Plans include provisions for this programme. 7.48. One of the major tasks is intensification of -agricultural extension and sales promotion arrangements so as to step up fertiliser consumption. The scope for effort in this direction is evidenced by the large gap that continues to exist between the recommended dosage and the actual application of fertiliser even in areas covered by HYP. Apart from concerted action by the Stale extension agencies to organise demonstrations on a priority basis, there is both need and room for energetic measures by the fertiliser industry. Recently. the manufacturers have been given the freedom ro market their entire product subject to the proviso that Government has the option to acquire up to 30 per cent of their production at negotiated prices. In fact, the Central fertiliser pool authorities are not exercising this option. Substantially, therefore, the manufacturers now possess both the freedom and the responsibility for sale promotion. A number of them have taken various measures such as organisation of "demonstrations and publication of publicity literature. Some have introduced soil testing and training of dealers. It will be necessary for the industry to undertake more vigorous action. Il i& also contemplated that the Government and the industry will jointly set up a Fertiliser Promotion Council as an autonomous body to strengthen and coordinate sales promotion arrangements, 7.49. One of the factors influencing fertiliser consumption is the availability of fertilisers within easy reach of the farmer. Recently, Government has amended the fertiliser control order so as to substitute mere registration for licensing of fertiliser dealers. While expansion in the number of retailers is likely to be facilitated by this step, it will be equally necessary to ensure that the retail points are widely dispersed so as to include coverage of villages away from the rail heads. This is particularly urgent in view of the fact that the number (if cooperative retail depots, in recent years, has declined from over 48,000 to nearly

40,000 as a result of the policy of cooperatives to rationalise their distribution system in the context of competition from private trade. 7.50. Apart from a significant expansion in the quantitative consumption of chemical fertilisers, attention will have to be given to certain qualitative aspects relating to balanced use of fertilisers. From the agronomic point of view, the proportion of PaO; and K;;0 in relation to N must be much higher than is currently consumed. Unfortunately, in recent years, the consumption of PgO; and KaO has been particularly lagging behind the targetted programme. It will be necessary to take measures which are pointedly directed to towards accelerating the consumption of phosphafic and potassic fertilisers. These include popularisation of fertiliser, mixtures and complex fertilisers and stocking of these- fertilisers by the dealers. Other measures would include demonstrations directed towards these fertilisers and a more effective soil testing programme bringing out deficiencies of phosphorous in certain areas of Kerala, Mysore, Andhra Pradesh, Maharashtra. eastern Madhya Pradesh. Orissa, Bihar and Southern G'ujarat and deficiencies of potash in certain pockets of Orissa, Kerala, Tamil Nadu, Guja-raf, Maharashtra and western Rajasthan. 7.51. A programme of setting up mechanical compost plants for the manufacture of good quality organic manure out of urban waste is envisaged in the Plan. To start with, three to four plants of more than one type will be set up on a pilot basis with a view to evaluating the suitability of various types. In addition, efforts will need to be made 10 try out modern methods of chemical treatment of the sewage effluents. The possibility of drying the effluents prior lo applcation will be sought to be explored so as to reduce the space required for sewage treatment. The green manure programme would be included in the intensive rotations which are being developed. Plant Protection 7.52. In the new agricultural technology, plant protection has acquired an added significance. This is due to both technical and financial reasons. In the case of high-yielding varieties, conditions which are conductive to the growth of the plant population are also favourable for weeds, pests and diseases. Moreover, the high-yielding varieties necessarily c"(ai| a high cost of cultivation and hence ,1 cultivator can ill-afford to lose his crop. If full benefit is to be derived from the costly inputs, plant protection measures in various forms such as seed treatment, weed control and post-sowing prophylactic treatment, mus'i be made an integral part of cultural practices. 7 53. Seed treatment is the first crucial stage of plant protection. Dressing the seed with chemicals before sowing protects the seed from seed and soil-borne diseases and is essential for increase of plant population which is responsible for^the yield potential of the new varieties. In view of its importance, seed treatment is proposed to be given priority in relation to the projected target of 26 million hectares. 7.54. Weed control is another important aspect of plant protection. Such control through manual labour has obviously limitations in high density crops. Hence there is need for increased stress on chemical weed control measures. Since 1964, co-ordinated control trials on paddy have been conducted with satisfactory results. The Plan envisages a target of 2 million hectares for weed control. 7.55. Post-sowing hectares prophylactic treatment constitutes the main plank of the plant pro-teccion programme. In the Fourth Plan, a target of 34 million hectares is envisaged for this purpose. In order to be effective, this programme will- require two main supporting measures. The first relates lo organisation of a surveillance and warning system. The second one concerns intensive research on determination of the most effective chemical control measures for various pests and diseases. It is intended to give attention to both these aspects in the Plan. 7.56. Besides seed treatment, weed control and prophylactic spraying, other measures envisaged relate 10 rat control and control of epidemics. For anti-rat operations, a target of 10 million hectares is

envisaged. For all the plant protection programmes taken together, it is contemplated that about 80 million (gross) hectares will be covered by the end of the Plan. 7.57. Effective adoption of plant protection measures on the part of the cultivators is often inhibited by two among other factors, namely, lack of technical skill in the use of pesticides an dineffective-ness of indvidual operations. In this context, 'the Plan envisages Strengthening of the official plant protection services and expansion of training facilities. Steps will also be taken to strengthen the agro-aviation arrangements both in the public and the private sector. In the endemic areas, repeated aerial spraying is envisaged for eradication of pesfs and diseases. Such spraying is proposed to be financed by the Centre while the cost of the material used will be bome by the States. 7.58. Unlike chemical fertlisers, the plant protection material is still largely distributed by official agencies. It is estimated that, at present about 50 per cent is handled by Government personnel. Cooperatives and panchayats account for about 25 per cent and the balance is retailed by private dealers and manufacturers. It is estimated that by 1973-74 the annual consumption of pesticides should go up to 66.000 metric tonnes of technical grade material as against the present annual consumption of 40,000 metric tonnes. If this is to be accomplished vigorous action by the industry. Government and the cooperative organisations will be necessary. Agricultural Implements and Machinery 7.59. Since the commencemnet of the Third Plan, a number of steps have been taken to develop improved agricultural implements. While a measure of success was achieved, parts of the programme continue to suffer from a variety of shortcomings such as lack of suitable designs, high cost of manufacture and lack of adequate facilities for sale and repair. These problems will receive attention through intensification of research in agricultural engineering, and improvement of arrangements for fabrication and distribution of implements. Considering that there are nearly 70 million draught bullocks the scope for improved animal drawn equipment is enormous and their contribution to productivity can be significant. It is estimated that animal drawn seed drills and planters can save up to 40 per cent:of the time compared with broadcast sowing. Hence stress will continue to be laid on the programme for animal drawn implements and hand tools. 7.60. As regards power operated farm machinery, the approach is influenced by the new context in which efficiency of agriculture is linked to adequate supply of power for making optimum use of inputs such as seeds, fertilisers and irrigation and for facilitating completion of critical farm operations within the short periods available between crop seasons. Under a system of intensive cropping, the interval between two crops may be as little as three weeks. Early planting, which can have a visible impact on the yield, better land levelling and better tillage and accurate placement of seed and fertilisers are other features of new technology placing additional demands upon agricultural machinery. It is con' templated that a selective process of farm mechanisation will help to shift labour to more labour intensive agriculture activities and hence seek to avoid large-scale displacement of labour while adding to productivity. 7.61. There is substantial demand for modern .machinery. For tractors, the accumulated demand now pending is of the order of 80,000. By 1973-74, the annual demand of tractors would be well over one lakh. Efforts will be made to increase the indigenous capacity for manufacture of tractor. For facilitating creation of additional capacity, the wheeled tractor industry has been de-licensed. The power tiller industry has also been de-licensed for a similar reason. To the extent possible, the gap between demand and indigenous supply will be met by imports. 7.62. Programmes of training in the use of machines as well as of testing and popularisation ot agricultural machinery and implements will be given further attention. The facilities available at the Central Tractor Training Centres, Budni and Hissar will be expanded. A third training centre will be established in one of the regions not covered by the present ones. The Central Agricultural Machinery Testing Station at Budni will be expind-ed with two to three sub-centres for carrying out trial, testing and evaluation of a wide

range of more sophisticated machinery. Programmes of demonstration for equipment like seed-cum-fertiliscr 'drills, planters and power threshers, taken up during the Third Plan have facilitated their popularisation. Trial, evaluation and testing of new equipment needed for crop production programmes will be intensified. 7.63: Among the institutional arrangement for agricultural implements and machinery, the most significant element is represented by agro-industries corporations. Such corporations have been set up in 15 States as Joint ventures of the Central and State Governments. They are responsible for organising distribution of tractors, agricultural equipment and spare parfs and for setting up centres for hiring, servicing and repairing of agricultural machinery. For enabling farmers with meagre resources to acquire costly equipment, these corporations will fake up sale of equipment and machinery on hire purchase basis. In regard to custom service tor agricultural machinery, the activities of the agro-industries corporations would be supplemented by other agencies such as cooperatives organised by trained .technicians as well as agricultural marketing cooperatives. Minor Irrigation 7.64. In the Fourth Plan, there will be conside-rabia emphasis on minor irrigation. The programme will comprise projects for compact area development and for the integrated use of surface and ground water resources through wells, tubewells and pumpscts. Further details are included in the chapta' on Irrigation and Flood Control. Soil Conservation and Land Reclamation 7.65. In the Fourth Plan, it is proposed to adopt an "area saturation" approach so as to treat all types of land on a complete water-shed basis. Programmes of soil conservation will be preceded by standard soil survey for the identification of priority areas within the watershed by means of interpretation of aerial photographs. Priority will be given to areas which have a greater potential for production. While responsive areas in high rainfall zones will need intensive efforts in disposal of surplus wafer, in the low rainfall and drought-prone zones measures will aim at conservation of moisture. To achieve this. basinwise master plans will be prepared to include afforestation, pasture development, terracing and bunding of cultivated land, gully control and follow-up practices, to be coordinated among the concerned agencies. In ravine lands emphasis will be on the treatment and protection of agriculturally productive table lands as well as on the stabilisation of marginal lands. Pilot projects are proposed to be taken up over 8000 hectares to evolve an economically feasible methodology of reclamation of shallow ravines. In the reclamation of saline, alkaline and water-logged areas work will be taken up on easily reclamable lands as justified by economic and practical considerations. A similar pilot approach will be adopted in areas given to shifting cultivation, particularly in the north-eastern region. 7.66. In the State sector, an area of 5.39 million hectares of agricultural land and 0.45 million hectares of non-agricultural land will come under soil conservation measures such as bunding, levelling, terracing, ravine reclamation, grass land development and protective afforestation. Some Stales, notably Bihar, Orissa and West Bengal, have not vet enacted soil conservation laws. The existing legislation would also require amendments for a proper implementation of the watershed approach. 7.67. The major programme under the Centrally sponsored sector is the scheme of soil conservation in the catchments of river valley projects. During the Third Plan, the work was initiated in 13 pro-ects. It has been revealed from the sedimentation surveys that in a large number of projects, the pctual rate of siltation is higher than that assumed at the time of construction. This implies reduction of the effective life of the storaee in addition to encroachment on lives storage. The programme of soil conservation will be continued so as to cover the critical areas in tTh" catchments of major projects. An area of 0.60 million hectares, comprising 0.26 million hectares of agricultural land and 0.34 million hectares of nonagricultural land. will be covered by this scheme. The Centrally sponsored proeramme is required to be supported by a matching pro-oramme of soil conservation in less vulnerable and more productive areas.

Up to the end of 1968-69, nearly 7 lakhs hectares were treated at a cost of Rs. 23 crores. It is proposed to lake up 8 additional projects and cover 5 lakhs hectares during the Plan period. 7.68. Emphasis will be laid on soil surveys in the commands of irrigation projects for better soil and water management and identifying problem areas. A special project of soil surveys will be taken up in the five original T.A.D.P. districts. The Central organisation wilf be strengthened for helping the States to draw up detailed plans. A Resources Inventory Unit established at the Centre during 1966-67 is proposed to be strengthened to collect and collate data in respect of natural resources for agricultural development and prepare base-maps to help effective planning. A new cell in the Central organisation will help the States to draw up master plans of soil conservation in river valley projects. 7.69. While the main advances in agricultural production must come from increase in yields, expansion of area under cultivation can make some contribution, more specially for provinding land to the landless. During the Third Plan period, an area of 1.9 million hectares was reclaimed. A survey of wastelands suggest that an estimated area of 2.2 million hectares is available for reclamatien and cultivation during the Fourth Plan. Of this, land reclamation will be carried out over one million hectares. High-yielding Varieties Programme 7.70. The high-yielding varieties programme, is of crucial importance. Out of an increase of 31 million tonnes of foodgrains projected for the Plan, 21 million tonnes is attributed to this programme. This is expected to be achieved largely by the extension of the programme from a base level of 9.2 million hectares in 1968-69 to 25 million hectares in 1973-74. 7.71. Tn the initial stages, the high-yielding varieties programme encountered a variety of organisational and operational difficulties concerning identification of the areas to be involved, multiplication of the requisite quantities seeds, provision of credit and timely arrangements for plant protection. Since a very considerable expansion of the programme is envisaged, it is proposed that requisite advance action should be taken so as to conform to the main guidelines that have emerged from experience. The action to be taken will be partly in the sphere of agricultural research. As already indicated, while a varietal break-up in wheat and millets is already in evidence, research in paddy varieties has not yet reached that stage. For the success of the programme, it will be necessary to ensure that the breeders maintain a continuous supply of superior genetic material. 7.72. For obtaining optimum results from the high-yielding varieties programme, the main thrust of effort will be in the sphere of extension. The new varieties require more refined and precise cultural practices concerning preparation of seed bed and methods of sowing. Perhaps the most significant aspect relates to controlled irrigations so that water is supplied at critical periods of plant growth. Experiments already made show that four irrigations applied at crown root, flowering, milk and dough stages of development areas efficient in terms of yield as six irrigations applied indiscriminately. This irrigation efficiency which is basic to the success of high-yielding varieties programme has to be developed as part of the requisite cultural practices. There has to be a corresponding change in the practices of the canal irrigation authorities so as to help water management. Multiple Cropping 7.73 The importance of cropping intensity was often emphasised in the past and a measure of success was achieved. By 1964-65, out of 137.9 million hectares of net sown areas, 20.2 million 'hectares were sown more than once. However, in the absence of short duration varieties, cropping intensity could not be made a focal point of agricultural strategy. During recent years, this barrier is being overcome and techniques of inter-cropping and relay-cropping are being developed. A series of new multiple cropping cycles have been evolved and tested. These are likely to have a significant bearing on future development.

7.74. For the Fourth Plan. the target is to expand the multiple cropping programme so as to cover an aditional 9 million hectares. For the success of this programme, changes in irrigation practices, to which a reference has already been made, will be necessary. The implementation of the programme will be under taken in the light of the following guide-lines;

i. ii. iii. iv.

Crops grown in succession should not be susceptible to the same diseases and pesfs: There should be a leguminous crop in Vhe rotation so that biological nitrogen fixa. tion is promoted; Crops grown one after the other should have different rooting patterns so that one crop takes nutrients from the upper layer of the soil while the other taps the lower areas; Cultivation of short duration varieties bo as to make fuller use of moisture available from late rains.

Under the national demonstrations prossrammff. several new crop rotations have ^hown a gtenincant jncreasc in total production per unit of time. Traddition to short duration varietes of paddy, maize, jowar, bajra and wheat, barley, ragi, oilseeds, potatoes and vegetables have also been brought into crop rotations. As this programme of multiple cropping progress it will offer a potential for increase in production comparable to that provided by the high-yielding varieties programme. Agricultural Credit 7.75. In recent years, there has been a significant increase in institutionalising rural crcdii. At present, over 30 per cent of the borrowings by cultivators are from institutional sources. A substantial step-up in the institutional credit will be necessary as the programmes of intensive agriculture, involving use of costly material and labour inputs, will require massive credit support. The All India Rural Credit Review Committee (1969) has estimated that the short term production credit requirements in 1978-74 will be of ihe order of Rs. 2000 crores. The estimates for medium and long term credit, which are for the whole of the Plan period, are Rs. 500 crores and Rs. 1500 crores respectively, 7.76 Cooperatives will continue to be the principal agencies for agricultural credit. It is estimated that cooperative short-term and medium-term credit will expand from the present level of Rs. 450 crores per annum to Rs. 750 crores in the final year of the Fourth Plan. As regards long-term credit, 'the land development banks wliich have made significant progress in recent years, are well organised to handle loan operations of over Rs. 1000 crores over the Plan period. However, on the basis of financial resources now in sight, a target of Rs. 700 crores has been fixed for the time being. The detailed programmes relating to cooperative credit institutions are spelt out in the chapter on Cooperation. 7.77. While, as in the past, cooperatives will have to be strengthened and treated as the principal agency for agricultural credit, the approach in the Fourth Plan will be to ensure that agricultural production is not inhibited by the weakness of the cooperatives. In areas where the cooperative credit structure is weak, there will be a special effort to provide alternative institutional sources. The policy in the Plan will be to institutionalise agricultural credit to the maximum extent possible and to reduce direct loaninc by 'Government to the minimum. Among the alternative agencies will be agricultural credit corporations, to be set up under a law enacted by Parliament in States where cooperative credit structure is unequal lo the task of providing adequate agricultural credit. The agro-industries corporations are also expected to finance investment through hire purchase of agricultural machinery and pumpsets. 7.78. In the sphere of agricultural credit, one of the most significant institutions is the Agricultural Refinance Corporation. Started in 19'63, the Corporation has expanded its activities considerably in recent years. Up to the end of 1968-69, the Corporation lia'c! sanctioned 233 schemes involving a total outlay of Rs. 182 crores, of which the Corporation's commitment is Rs. 156 crores. The focus of its financing has rightly been on schemes of minor irrigation which were as many as 125 out of the total of

233. Lately, the Corporation has endeavoured lo diversify the scope of its refinancing portfolio so as to include schemes for poultry, dairying, fisheries and even construction of storages. 7.79. Some aspects of the working of the Corporation have to be noted here even though these are essentially related to the characteristics of the institutions which borrow from the Corporation and of the projects submitted to it for sanction. The relatively undeveloped state of the land development banks in certain States has led to uneven levels of loaning from this institution to different States, This needs to be rectified by improving the structure of long-term cooperative credit in those States as also by persuading commercial banks to participate more in this context than they arc doing at present. Secondly, the disbursements of the Corporation lag behind the sanctions on account, among other reasons, of delays in project formulation, appraisal and approval. These again represent a series of bottlenecks which need to be removed. These measures are all the more necessary because, ir the Fourth Plan. it is contemplated that the Agricultural Refinance Corporation will provide refinance of the order of Rs. 200 crores. 7.80. For meeting the gap in agricultural credit, the potentialities of commercial banks have to be fully mobilised. Following social control, commercial banks had shown an increasing interest in the agricultural sector. The volume of direct agricultural finance outstanding from commercial banks increased from Rs. 5 crores during 1966-67 to Rs. 53 crores in 1968-69. In 1968, a consortium of commercial banks set up Agricultural Finance Corporation with the object of coordinatin": activities of 'the constituent banks and rendering them consultancy services. 7.81. Consequent on nationalisation it is expected that the nationalised banks will take further measures to increase their finances for agricultural production and investment. Certain steps have already been taken in this regard. Each district in the country has been allotted to one bank called the 'lend' bank. Tt is the duty of the lead bank to survey the resources and potential for banking development in that district and offer advice to small borrowersfarmers particularlyand assist the other primary lending agencies and maintain liaison with G'overnment and quasi-government agencies. Trielead bank will also assume a major role in the development of banking in that district though it will not have a monopoly in the banking business in that district. 7.82. Various scheduled banks are now embarking on a massive programme of branch expansion with emphasis on unbanked towns or centres. This tempo will be kept up throughout the Plan so that the banking facility is brought as near to the villager as possible. The banks will thus attempt to cafer directly to the needs of the individual farmers. They arc already setting up some mobile units to increase (heir coverage of villages from their existing branches. Direct lending to farmers is expected to increase to Rs. 400 crores by the end of the Fourth Ptan from the commercial banks as against Rs 53.59 crore? at the end of June 1969. 7.83. The various institutional agencies catering to the requirements of rural credit will have to function in an integrated and coordinated manner. In view of the large variety of conditions, it will be necessary to make detailed plans for the development of credit and banking in the rural sector on {he basis of local conditions. There is, therefore, a iecd for an area approach on the basis of the district as the unit. This would mean the preparation of credit plan for the district :ind integrating the pkm with other development activities. Within this credit plan, the cooperative sector and the commercial banks will have to work in close coordination. Agricultural Marketing 7.84. As already stated, one of the key elements in the agricultural strategy of the Fourth Pk'n is 10 aim at improvement of agricultural marketing .system in the interest of the producer. The objective rs to see that imperfections in the marketing system do not act as a constraints on agricultural production. One of the measures proposed for development of the marketing infra-structure is the expansion of the system of regulated markets. At the beginning of the Third Plan, legislation for establishment of such markets was in force in 9 States. Since then, 4 other States have enacted the Agricultural Produce Markets Act. In the

Fourth Plan, the remaining States, namely, Assam, Kerala and Jammu and Kashmir, are expected to place the legislation on t&e statBte book. On the eve of the Fourth Plan, the number of regulated markets and sub-market yards-was 1616. About 2100 markets and sub-market yards are yet to be brought under regula-tioa. This task will be pursued in the Fourth Plan period. 7.85. Apart from covering more markets bv regulation, it will be necessary" to expand facilities by way of market yards and other ancillaries in various markets. A recent study has shown that in certain areas such as Punjab, during the post-harvest season of 1968-69, market arrivals increased by 150 per cent over the average of last three years' corresponding period. The capacity for market yards proved to be inadequate for these large arri-vuis and considerable market transactions beg.in to be conducted outside the market yards thus leading to malpractices. In this context, efforts will be necessary for strengthening and restructuring the market committees with regards to their resources and functions. A beginning has already been made by some market committees to obtain bank I'inance for improvement of marketing facilities. It will he necessary to enable a large number of market committees to resort to such institutional finance and thereby help in development of the market yards and in the provision of ancillary services, such as market intelligence. Some of the well developed market committees are also expected to make their contribution to the development of feeder roads for which a beginning has been made in a few rural areas. Finally, it will be necessary to evolve a suitable State level machinery for supervising and coordinating the work of regulated market committees. In tills context, several States are con-temolaring action to constitute State Agricultural Marketing Boards on the lines of these functioning in Punjab and Haryana. 7.86. Another significant programme for improvement of the marketing system relates to expansion of facilities for grading of agricultural produce. At present. there are about 450 grading units operated by various agencies, such as regulated markets. cooperative societies, and central and Stale warehouses. Despite the progress made in recent years. the overall share of grading in the total trade of agricultural produce still continues to be negligible, that is, around 1 per cent or so of the total value of (he agricultural produce marketed. Hence, there is a very considerable scope for expansion of grading facilities. Tn the Fourth Plan, a programme of another 600 grading units is envisaged. A pilot crore for classing of lint with a view to helping life farmers in determination of the quality of lint and thus enabling them to market cotton in the term of lint, as against kapas at present, v/ill be established at Surat. In addition, denionsfration-cum-grading pilot units will also be taken up for ceriajn agricultural commodities. 7.87. To facilitate agricultural exports, compulsory quality control and grading under Agmark whrh is in operation in respect of 34 agricultural commodities, will be continued. Tn addition, pre-shipment inspection and quality control under Ag-mark is proposed to be extended to 10 new com-"odirics. The laboratory facilities for testing the purity and quality of the produce, existing at Bombay, Cochin, Jamnagar and Madras, will be further expanded. New laboratories are also proposed to be set up at Tuticorin, Mangalore and Alleppey during the Fourth Plan. Another important scheme in the Fourth Plan relates to Central AgiTiark Research and Training Institute which will be set up to help in the adoption of technological improvements in the marketing of perishable products like fruits and vegetables. This Institute will also undertake trial and demonstration of new equipment for cleaning, grading, packing, transport and storage and impart training in the commercial use of new techniques. Agriculture Pricing 7.88. As already indicated in para 7.9. the policy of minimum prices as an incentive to agricultural production, has been given a pointed recognition in recent years. Although the new technology offers a prospect of bigger returns to the producers, their cultivation costs are higher and hence the special significance of under-pinning the production effort by assured minimu mprices. It may be added that, while in the past a large portion of the costs of cultivation were imputed, for the new 'technology an increasing proportion of the costs are necessarily cash costs. Tf the minimum support prices are 10 be effective in facilitating agricultural production. certain aspects of implementation stressed by the Foodgrains Policy Committee (1966) are particularly relevant. These aspects are :

i. ii. iii. iv.

The announcement of prices should be made well before the sowing season; In order that the guaranteed minimum support prices may help in creating a favourable climate for long-term investment, the prices should be fairly stable over a long period; Government should provide wide publicity to the minimum support prices and to the effect that it will be prepared to purchase all the quantities offered to it at those prices; Adequate arrangements would be made at important markets for making purchases at the support prices whenever the need arises.

7.89. A policy of minimum support prices for main agricultural commodities, viz.. foodgrains, sugar-cane, jute and cotton, has already been accepted. However, in the past, the effectiveness of this policy has varied considerably depending on the adequacy of the relevant purchasing machinery, such as the Food Corporation of India, the State Trading Corporation and the cooperative market-in? organisations. Tn the Fourth Plan, efforts will be made to strengthen public and cooperative agencies so as to ensure that the purchase operations do in fact benefit the primary producers. As regards jute, a separate corporation is proposed to be set up as soon as possible. Until such a corporation is established, the responsibility for pric.e ;:uppoit purchase operations will continue to rest with ihc State Trading Corporation. In .regard to cotton, proposals are being worked out for establishing a suitable public agency which will also be entrusted with the responsibility for import of. cotton. As regards oil seeds, certain proposals for stabilisation of prices including buffer stock of oil seeds are under consideration. Storage and Warehousing 7 90. The Fourth Plan programme of storage is based on an integrated view of the requirements 'Of storage for various purposes, namely, storage of buffer stocks and operational stocks of foodgrains by the 3 Food Corporation of India, provision of warehousing facilities for the producers and th 'rade the Central and State Warehousing Corporations, and the requirements of storage facilities on the part of cooperatives for both the' distribution of agricultural inputs and the marketing of agricultural produce. The total financial requirement for .the entire progremme has been estimated at Rs. 151 crores, of which a part will be met by the Agricultural Refinance Corporation and commercial hanks while the balance has been provided in the State and Central Plans. . 7.91. On the eve of the Fourth Plan, the storage capacity in possession of the Union Department of Food. the Food Corporation of India. State Governments, the Central Warehousing Corporation. State Warehousing Corporations and Cooperatives was as under : Table 8 : Storage Capacity 1968-69 Sl.No. 1 2 3 4 5 6 . agency (1) Food Department and Food Corporation of India State Governments Central Warehousing Corporation State Warehousing Corporations Cooperatives Total owned (2) 2.62 1.40 0.65 0.23 2.60 7.50 hired (3) 1.261.26 0.31 0.60 3.43 total. (4) 3.88 2.66 0.96 0.83 2.60 103

7.92. For storing focdgrains, the total owned capacity at the beginning of the Fourth Plan was nearly 4.51 million tonnes. The effective storage capacity available after providing for operational purposes works out 4.0 million tonnes. A part of this capacity will continue to be utilised for storage of operational stocks.

About 1.5 million tonnes can be deemed to be available for storage of buffer stock. On this basis, an additional effctive capacity of 3.4 million tonnes would be necessary to provide for a buffer stock of 5 million tonnes. For this purpose, a capital outlay of Rs. 73 crores would be necessary. This is expected to be financed partly by governmental loans and partly by loans raised by the Food Corporation from the banking sources. A sum of Rs. 2 crores has been separately provided for about 200.000 tonnes of additional storage facilities; which will be required for storing fertiliser at pWs and other strategic points. 7.93. With regard to the expansion of warehousing facilities, the Fourth Plan contains an outlay of Rs. 12 crores for the Central Warehousing Corporation. A part of this outlay will be utilised by the CorporoHon for contributing to the equity capita] of State Warehousing Corporations. In addition. Siatc Plans include a provision of about Rs. 6 crores for State Warehousing Corporations. It is envisaged that the additional capacity to be put up by the Central-and State Warehousing Corporations wil be.of the order of 1 million tonnes. In the cooperative sector, the programme of construction of storage has so.far been financed entirely by the Plan funds. In the Fourth Plan, the cooperatives will have recourse to banks with refinancing facflities from the Agricultural Refinance Corporation. On this basis, the provision made under the State Plans for cooperative storage is intended to be used essentially as margin money. Cooperatives will establish about 2 million tonnes of additional storage capacity. 7.94. A countrywide 'Save Grain Campaign' was launched in 1965 for the propagation of clieap and effective methods of insect and rodent control among various private agencies storing foodgrains for consumption, seed and sale purposes. Steps were (aken to amend Wheat Roller Flour Mills (Licensing and Control) Order to provide for better storage in tile roller flour mills. State Governments were also requested by the Government of India to make suitable amendments in the relevant Foodgrains Dealers' Licensing Orders to make it obligatory on the part of the traders to undertake suitable measures for the avoidance of wastage of foodgrains while in storage. Most of the Stales have already made the necessary amendments. It is proposer to affect the necessary legal change in the remaining States during the Fourth Plan period. To intensify the campaign further, it is proposed to train the traders, millers and cooperatives in scientific methods of foodgrains storage and (o popularise cheap and effective post control techniques. 7.95. Research and training are essential for the deveolpmcnt of scientific storage. These activities being undertaken by a number of organisations such as the Indian Grain Storage Centre, Hapur Central Food Technological Research institue, Mysore. Specific area in which research and training are proposed to be strengthened relate to the requirements of material for storage construction, its cost and management. The Central Warehousing Corporation has already introduced extension services for the promotion of scientific storage among stocking of agricultural producer in the private sector. It is proposed to extend this activity through (he State Warehousing Corporations. 7.96. A recent development of some promise relates to introduction of metal storage bins at farm level for the protection of grains from rodents and insects. A pilot scheme has been taken up for the purpose. Under this scheme, metal bins will be supplied to the farmers on instalment basis and (hey will be rendered technical help for installation and maintenance of such bins. Apart from this pilot scheme, in certain areas, such as Punjab, over 10.000 metal storage bins have been introduced at the farm level largely at the initiative of the farmers themselves. It will be necessary to review the operation of these bins before the programme is taken up on large scale. Agricultural Administration and Statistics 7.97. The agricultural administrative system was reviewed by a Working Group in 1963. The Group reported that "unsatisfactory administrative and organisational arrangement was, by far, the most important single factor responsible for inadequate progress in the sphere of agricultural production". Since then, attempts have been made to revamp agricultural administration. At the national level, cioscr administrative coordination has been sought (o be achieved between the different Ministries concerned with Agricultural production. The Union Dcpiirn'nei'il of Agriculture has been reorganised and strengthened. Also. at the Centre, a Cabinet Committee on Food. Agriculture and Rural Development has

been constituted to deal with policy issues. At the State level, the Working Group on Inter Departmentand Institutional Coordination for Agriculture Production (1963) had recommend-"'.l that the responsibility for administrative coordination should "be placed on a senior officer functioning as Secretary-cuinAgricultiin;! Production Commissioner. Several States have already implemented this suggestion. 7.98. A further aspect of administration, which has (o be worked out in the Fourth Plan. relates to the relationship between the agricultural universities and the State departments of agriculture. Except in one or two States no effective liaison appears to have developed so far between agricultural universities and the extension personnel of the State Departments, It will be necessary to take measures to demarcate the functions and responsibilities between the agriculture universities and the State departments of agriculture, animal husbandry. and fisheries and to promote functional collaboration. It is contemplated that, while agricultural universities, besides being in charge of teaching and research, will also deal with extension education, the task of extension to the farmers will be handled primarily by the extension personnel with the State Governments. To the extent that agricultural universities succeed in bringing the latest research findings to the extension agency of the departments of agriculture in the States and feed back field problems to the research stations and laboratories, the objective of meaningful coordination based upon an active link between the university and the State department of agriculture will move nearer accomplishment. 7.99. Agricultural statistics are an important tool for agricultural administration and planning. Efforts have, therefore, been continuously nude to improve the quality, content and coverage of agricultural statistics, particularly those relating to area and production of crops. At present, the estimates of acreage under crops are compiled on the basis of complete field to field enumeration by the primary reponiiiig agencits in all the Slates except West Bengal, Orjssa and Kerala, where the crop acce-agcs are estimated by the method of random sample surveys. Statistics of yield of principal crops in all the States are based on the method of random s;mple crop cutting surveys. While the existing system of collecting data on area and production is quite comprehensive, experience has shown that there is a scope for further improvement in the following directions :

i. ii. iii.

Reduction in time lag in the availability of the estimates of area and production; Strengthening of supervision over area enumeration and yield estimation work done by primary reporting agencies; Providing objective advance estimates of production of crops for policy and administration purposes.

7.100. In order to effect the required improvements suitable measures are proposed to be taken under the Fourth Plan. A Centrally sponsored scheme for timely reporting of estimates of area and production of crops has already been formulated. This scheme is already being implemented in Uttar Pradesh, Maharashtra, Mysore and Bihar, and is proposed to be extended to other States. This scheme envisages the collection of data relating to areas under high yielding and other improved varieties of crops, and also yield rates for irrigated and unirrigated areas separately.

5th Five Year Plan (not a lot on Agri)

Chapter-5:

PLAN OUTLAYS AND PROGRAMMES OF DEVELOPMEN

I. Plan Outlays

The Draft Fifth Five Year Plan envisaged an outlay of Rs. 37250 crores in the public sector. The revised Plan outlay is now estimated at Rs 39303 crores excluding provision for inventories. Public Sector Outlays 5.2. Not only has the Total Plan Outlay been increased from Rs 37250 crores to Rs 39303 crores but the outlay for the next two years has been reckoned at Rs 19902 crores as against the estimate for the first three years of the Plan which aggregate to Rs 19401 crores. 5.3. The break down of the revised outlay under major heads of development is as follows : Fifth Five Year Plan Outlay-1974-79 (Rs. crores) draft fifth plan (0) 1. 2. 3. 4. 5. 6. 7. agriculture and allied programmes irrigation and flood control power industry and mining transport and communications education (1) 4935.00 2681.00 6190.00 9029.00 7115.00 1726.00 revised fifth plan 1974-77 (2) 2130.19 1651.50 3513.05 5205.35 3552.67 587,77 2322.42 1977-79 (3) 2513.40 1788.68 3780.85 4995.25 3328.76 696.52 2444.35 1974-79 (4) 4643.59 3440.18 7293.90 10200.60 6881.43 1284.29 4766.77

social and community 5074.00 services (including economic and general services but excluding education) hill and tribal areas and NEC 500.00 schemes sectoral distribution not yet reported. Total 37250.00

8. 9. 10
1 2

177.50 260.44 79400.89

272.50 66.29 79856.60

450.00 326.73 39287.491

Does not include an amount of Rs- 16 crores for which sectoral break-up is not worked out. Sectoral break-up does not include an amount of Rs. 203 crores added subsequently.

The outlays for the remaining years of the Plan are based on the following broad considerations : -

i. ii. iii. iv.

The plan priorities of the Draft Fifth Plan have been kept unchanged; the outlays for on-going projects/schemes have been determined on the basis of present and future demand, past performance, current completion schedules and escalation in costs ; provisions have been made for new starts, including those which have long gestation periods, keeping in view the demand pattern for 1981-82 and in some cases 1983-84 ; and an attempt has been made to see that the investments are not only fruitful but that they also ensure adequate return. In agricultural production, power, irrigation and education sectors targets

were suggested keeping in view the national targets, natural resources of States and their present state of preparedness. 5.4. There is substantial step-up in the outlays on irrigation and flood control, power and industry and minerals. In agriculture, education and social services sectors though the revised outlays for the Fifth Plan as a whole are smaller, the outlays for the last two years of the Plan are higher than the outlays for the first three years. 20-Point Economic Programme 5.5. The 20-Point Economic Programme was announced by the Prime Minister on 1st July, 1975. The various constituents of the 20-Point Economic Programme, especially those which require financial investment, have been identified. Priority has been accorded to the implementation of the schemes falling under this programme. The outlays of the Centre, States and Union Territories for the remaining two years of the plan1977-79 and the Fifth Plan are indicated below : (Rs. crores) 1975-76 anticipated (0) centre states and U.Ts. Total (1) 119.01 1850.68 1969.69 1976-77 approved outlay (2) 163.71 2173.97 2337.68 1977-79 proposed outlay (3) 757.06 5334.67 6091.73 total (4) 1039.78 9359.32 10399.10

Annexures 21 and 22 indicate the proposed outlays for 1 977-79 in respect of different constituents of the 20-Point Economic Programme. Overall Outlay 5.6. The distribution of the outlays by sectors, by Ministries, by States and by Union Territories is shown in Annexures 17-20, Briefly, the revised Plan outlays are as follows : (Rs. crores) 1. central sector 2. states 3. union territories 4. hill and tribal areas Total 2. Agriculture and Irrigation 5.7. Agriculture Production: The methodology followed in arriving at the projections of foodgrains, important commercial crops, irrigated areas and other physical programmes has been explained in the chapter on the Rate and Pattern of Growth. These estimates relate to average weather conditions in a given year. However, in order to allow for variations in the effect of weather, provisions have been made in individual state plans on a slightly higher scale so that the total production is not materially lowered even if some part of the country is affected. If these outlays are utilised with a fair degree of efficiency and 19954,10 18265.08 634.06 450.00 39303.24

if weather conditions are favourable in all the states, the total production would naturally be much higher and could be of the order shown in the table below. (mt-million tonnas, mh-million hectares, mb-million bales ) item (0) foodgrains (mt) oil seeds (mt)-five major sugar cane (mt) cotton ( mb -170 kg) jute and mesta (mb -180 kg) high-yielding varieties (mh) fertilizers consumption (mt) minor irrigation (mh) 23.1 31.6 1973-74 level (1) 104.7 8.9 140.8 6.3 7.7 25.8 2.8 maximum production estimates (2) 132.9 12.6 173.5 9.0 7.7 40.0 5.0

5.8. The expenditure on Agriculture and allied programmes during 1974-77 is likely to be about Rs. 2 I 30 crores. The outlays proposed for the last two years of the Plan period are of the order of Rs. 251 3 crores. The Sectorwise outlays are shown in Annexure 23 and the State-wise allocations are given in Annexure 24. 5.9. Performance of the important programmes, like DPAP, minor irrigation, production and distribution of high-yielding varieties of seed and distribution of fertilisers have been specifically examined and necessary provision has been made. The outlays for reclamation of alkline, saline and acidic soils and plant protection programmes have been suitably enhanced. Emphasis has also been placed on developing organic sources of manure and higher outlays provided for setting up biogas plants. Adequate provision has also been made for accelerating the minikit seed programme and strengthening of the extension services. Provision has also been made for augmenting storage capacity in the public sector. Irrigation 5.10. The total irrigation potential likely to be created during the Fifth Plan period is placed at 13-1 million hectares ; 5-8 million under 'major and medium' and 7'3 million under'minor'. Allowing for certain adjustments the additional potential should be of an order higher than 11 million hectares. Major and Medium Irrigation 5.11. During the first three years of the Fifth Plan the expenniture on major and medium irrigation projects is likely to be Rs. 1474 crores. For the remaining two years of the Plan, an outlay of Rs. 1 621 crores is indicated keeping in view the progress achieved on each project, new completion schedules, development of additional command and escalation in costs. Where work could be accelerated, higher, outlays have been provided for projects such as Nagariuna-sagar, Sarda Sahayak, Rajasthan Canal, Malaprabha and Kadana, Commitments to international agencies like the World Bank in respect of certain projects and obligation of States to provide matching funds in respect of inter-State projects have been kept in mind. 5.12. An Outlay of Rs. 1013 crores has been provided for new starts during the Plan period. In selecting new projects, priority was accorded to those located in drought prone areas. On the basis of the data furnished by the States and the discussions held recently, an additional potential of 5-8 million hectares is

expected to be acnieved during the Fifth Plan period. Details indicating the outlays and benefits Statewise are given in Annexures 25 and 26. 5.13. Planning Commission has been laying great emphasis on modernisation of certain important irrigation schemes urgently, particularly those completed earlier to the Plan periods. Provision has been made for some schemes like Godavari Barrage, Tajewala and Okhia Barrages and Bhimgoda headworks. Minor Irrigation 5.14. According to the outlays available to the states for the first three years, a maximum potential of nearly 3'4 million hectares is likely to be created during the first three years of the Plan. The provision made in the following two years of the Plan almost equals the provision in the first three years. As a number of the projects are nearing completion, it is expected that an additional 3-9 million hectares will be brought under irrigation during the next two years. Soil and Water Conservation 5.1 5. The programme for treatment of area in river valley catchment of major reservoirs and other soil and water conservation programme made a late start. A considerable step-up in outlays for implementation of these programmes has been made for the remaining two years'of the Fifth Plan. In some of the States, soil and water conservation programmes have also been taken up with institutional credit support and the targets of physical performance are likely to be achieved. Area Development 5.16. This important programme for optimising the use of irrigation water and utilisation of the potential created from selected commands of major irrigation works also took time to make a start. Now the Command Area Development Authorities have been set up and other infrastructure facilities developed. Therefore, the provision in the Central sector would be almost 22 per cent higher for the remaining two years as compared to the outlays for the first tnree years. The provisions in the respective states adequately match the provision made in the Central sector. Investment in Agricultural Financial Institutions 5.17. More and more institutional finance is being extended to the development programme for rural areas which leads to higher physical achievements with less public sector outlays. Accordingly, for providing support to Agricultural Refinance and Development Corporation, adequate budgetary provision has * been made in the Central Sector, which is almost 55 per cent higher than the outlay in the draft Fifth Plan. In the State, sector, provisions have also been made for investment in agricultural financial institutions which are higher by about 22 per cent. The provision made for the remaining two years in some of the States especially in the eastern region for strengthening of cooperative structure and development of loaning programmes by the Land Development Banks is almost 62% higher than the outlays available for the first three years. The total investment outlay is being raised to Rs. 129 crores. It is to be noted that the major portion of it will go to minor irrigation sector. This should generate sizeable investment and strengthen the operational capability of the Central/State Ground Water Boards. Forestry 5.18. Taking note of the fact that forestry development has assumed a significant dimension as a source of timber and fuel and for the maintenance of the natural ecological system, special programmes for social forestry and economic plantations have been given high priority. Accordingly, for the remaining two years of the plan, the provision made is almost double the outlays provided for in the first three years of

the Plan. Adequate provision has also been made for 'project Tiger' and for the development of National Parks and for strengthening the reserch programme in the forestry sector. Animal Husbandry and Dairy Farming 5.19. There had been some delay in giving a start to the special livestock development programmes through small and marginal farmers and agricultural labourers. By and large the targets under production oriented projects such as intensive cattle development projects, intensive poultry production-cummarketing centres, sheep and wool extension centres and fluid milk plants and milk product factories are expected to be achieved in full. There are 85 subsidised projects for cross-breed calf rearing, 57 poultry production projects, 45 piggery production projects and 38 sheep production projects through small and marginal farmers and agricultural labourers in 148 districts. Intergrated milk production-cum-marketing projects would be implemented in the States of Meghalaya, Assam, Sikkim, Himachal Pradesh, J and K, Orissa and Kerala as a second phase of the 'Operation Flood' project. Emphasis will continue to be laid on cross-breeding in cattle through establishment of exotic cattle breeding farms and intensive artificial insemination measures. Particular emphasis will be laid on scientific poultry breeding programme. Programmes for the control of rinderpest and foot and mouth disease would be continued. Fisheries 5.20. There has been some delay in the start of a few projects but the targets for mechanisation of boats, production of fish seed and development of fishing harbours are expected to be achieved in full A special Trawler Development Fund will be created in order to helo, in particular, smaller entrepreneurs and cooperatives to purchase and operate trawlers for marine fishries. Fish Farmers Development Agencies would be started in the states for augmenting inland fish production and exploitation of water bodies in rural areas. 5.21. The UNDP assisted palagic fishery project would be continued for exploration and exploitation of fishery resources and this scheme would be extended to cover both the West and South East coasts. A survey of the North West coast would be conducted. An intergrated fishery development project around two fishing harbours at Veraval and Mangrol in Gujarat would be taken up with world Bank assistance. A research vessel will be provided to the Central Marine Fishries Research Institute. Research and Education 5.22. In spite of the fact that the trend of expenditure during the first three years has been low on account of ban on recruitment of staff, the research priorities in different fields of crop production and animal husbandry have been maintained to yield new innovations in developing farm level technology. The coordinated research programmes have been suitably strengthened with the active participation of the Agricultural Universities in different States. A new research complex has been established in the northeastern region. New institutes have also been established for strengthening cotton research and for developing research programmes on farm tools, equipment and machinery. Provisions have been made for projects with collaboration of agencies of United Nations. The Educational programmes have been further strengthened by setting up new Agricultural Universities which now number 21 covering 1 6 States. Cooperation 5.23. Taking note of the desirability of strengthening the cooperative structure, provision has been sufficiently enhanced for Agricultural Stabilisation Fund, rehabilitation of weak Central Cooperative Banks and assistance to cooperative credit institutions in developing States. Thus the revised outlay for 1977-79 is almost 60 per cent higher than the outlays for the first three years of the Fifth Plan. Similarly, adequate provisions have been made in the State sector to provide for strengthening of cooperative structure by

organising Farmers Service Societies-and LAMPS in the tribal areas. Provisions have also been made for increasing the loaning programmes for m'nor irrigation, land development and supply of inputs. Flood Control 5.24. The anticipated expenditure in the first three, years is likely to be of the order of Rs. 177-69 crores. For the next two years (1 977-79). an outlay of Rs. 167.59 crores has been indicated (Annexure 27). 5.25. Some of the .important schemes are the Patna City Protecton Works, flood protection works in North-Bihar and U.P., flood control and drainage works in Jammu and Kashmir, drainage works in Punjab, improvement of lower Damodar system in West Bengal and flood protection works in North Bengal. The provision also covers the flood control works in the Brahmputra valley for which provision has been rr.ade in the Central sector. 5.26. The Centre is also assisting in sharing the cost of flood control component of the Rengali dam in Orissa and anti-sea erosion works in Kerala. It also meets the cost of the flood forecasting system that has been set up in the Department of Irrigation. 3. Power 5.27. In the Fourth Plan an additional 4280 MW of generating capacity was added, taking the installed capacity to 18456 MW. In the first two years of the Fifth Plan 3524 MW were added, and with the requisite efforts on the part of the project authorities, it might be possible to add 2387 MW capacity during 1976-77. In the first three years, the outlay on generation projects would be about Rs. 2145 crores. It is now expected that a total of about 12500 MW of generating capacity would be added during the Fifth Plan. Out of the projects which are currently under implementation, generating capacity of about 6000 MW would be still under construction at the end of the Fifth Plan. Experience indicates that management and techniques of construction and monitoring, would need to be considerably improved. 5.28. In finalising the Fifth Plan for Power, emphasis has been placed on the completion of on-going schemes as expeditiously as possible. In recommending outlays, the latest cost of each generation project, status of progress of major items of works, delivery schedules for the equipment and any constraints likely to be faced in implementation were all taken into account. Particular consideration has also been given to infra and inter-State transmission lines, setting up and strengthening of regional load despatch centres, and investments on distribution. Transmission and distribution losses are expected to be reduced. The needs of schemes covered by external assistance have baen also kept in view. Rural electrification will also be significantly higher than in the first three years of the Fifth Plan. The States will also be attracting institutional finance for rural electrification. The programme of energising pump sets will be accelerated. About 13 lakh pump sets are expected to be energised during the Fifth Plan period, as against about 6.3 lakh pump sets in the first three years. About 81,000 additional villages are also expected to be electrified in the Fifth Plan. 5.29. In planning advance action for the Sixth Plan, the power requirements till the end of the Sixth Plan are being kept in view. It has been assumed that the healthy trends In improved utilisation of capacity which have been observed in the Fifth Plan period and the progress in reduction of distribution losses, will continue. Special attention will be paid towards ensuring that regional grids are strengthened, that there is a balanced development of peaking and base load stations in each region, and that optimal use is made of these stations both by an integrated operation within the region and where necessary by cooperation between regions. With these considerations in mind, provision has been made for a number of new starts in the thermal and hydel projects including a centrally owned super thermal station. The views of the States were taken note of particularly in regard to aspects like readiness of projects, construction periods and escalation in cost. Many States expressed their willingness to raise additional resources to meet the requirements of new power projects.

5.30. The power position in northern and eastern regions will continue to be comfortable. But western and southern regions are expected to face both peaking and energy deficits. 5.31. Increased outlays are provided for training facilities for the operation and maintenance of power system, testing facilities for electrical equipment and R and D in such priority areas as geothermal and tidal power. 5.32. The revised outlays under the various categories are summarised below:Fifth Plan Power-Financial Outlay (Rs crores) item (0) 1. generation 2. transmission and distribution 3. rural electrification (a) M.N.P. and state plan 360.54 (b) rural electrification corporation 4. survey and investigations 5. Total 314.02 74.92 6369.92 2.72 98.76 55.24 825.22 10.74 371.28 314.02 132.88 7293.90 698.24 400.00 133.68 6190.00 states (1) 3722.71 1897.73 union terntone centre (2) 6.52 78.78 (3) 665.24 104.74 total (4) 4394.47 2081.25 dratititth plan (5) 3323.81 1634.27

5.33. The generation schemes which have been or are expected to be commissioned 'n Fifth Plan period are shown in Annexure 28. The regionwise break up of installed capacity is expected to be as in Annexure 29. 4. Industry and Minerals 5.34. The stresses and strains in the economy kept the industrial growth low :2.5% during 1974-75 and 5.7% during 1975-76. Even so, significant increase in production have been achieved in some of the basic industries like steel, coal, cement, non-ferrous metals and power generation. Decline was particularly noticed in industries like passenger cars, consumer durables and cotton textiles. 5.35. Some of the steps taken to correct this situation can be mentioned. 21 industries including cotton spinning, basic drugs and industrial machinery have been delicensed. In respect of 29 selected i ndustries, the existing units including foreign and MRTP companies have been permitted to utilise their installed capacity without limit. In order to promote exports of engineering goods, 15 engineering industries have been allowed the facility of automatic growth of capacity,at 5% .per annum or up to a ceiling of 25% in a Plan period in physical terms. Various facilities have been extended to non-resident Indians for the establishment of industrial undertakings and for investing their earnings in selected industries. The resources of I DBI and other term lending institutions are also proposed to be augmented. Conditions are now favourable for maintaining the tempo of growth in industrial production and investment, achieved during the last quarter of 1975-76. 5.36. In making revised allocations, speedy completion of projects and appropriate action for starting new projects with long gestation periods have been kept in mind. As against an outlay of Rs. 13,528 crores

envisaged in the draft Fifth Plan, the revised figure is placed at Rs. 1 6,660 crores : Rs. 9660 crores in the Central and States Public Sectors and Rs. 7000 crores in private and cooperative sectors. Central Public Sector 5.37. A detailed list of projects and programmes included in the Central sector of the plan is given in Annexure 30. The broad break up of certain important groups of industries in the public sector is as follows : Outlays for important groups of industries (Rs. crores) Industry 1. 2. 3. 4. 5. 6. Steel Fertilisers Coal (including lignite) Oil exploration, refining and distribution Petrochemicals Machinery and engineering industries 349 365 Outlay 1675 1533 1147 1575 7. 8. 9. 10. 11. 12. Industry Non-ferrous metals Iron ore (including Kudremukh Project) Paper and newsprint Cement Textiles Ship Building Outlay 468 513 203 102 104 147

5.38. The targets of production visualised in the Plan for selected industries is given in Annexure 31. The average rate of industrial growth during the Fifth Plan is reckoned to be around 7% per annum. In view of the relatively lower rate of growth in the first 2 years of the plan, the growth rate in industrial production in the lernaining 3 years of the Plan will have to be maintained around 9 to 10% Steel 5.39. The domestic demand for finished mild steel is estimated at about 7.75 MT by 1978-79, while the production is expected to be 8.8 MT including a production of 1.06 MT from the mini steel plants and reroilers. Though a few special categories of steel will still need to be imported, on the whale the country has now emerged as a net exporter of steel. 5.40. The 1.7 MT stage of Bokaro is expected to be completed by the end of 1976. This plant, except the cold-rolling mill, is expected to expand to 4.0 MT by June 1979. The work on the expansion of Bhilai steel plant to 4.0 MT is expected to be completed by December 1981. Plans have also been drawn up for rehabilitation and modernisation of the IISCO plant. 5.41. Considering the longer gestation period in the steel industry, various alternatives for expansion and development are under consideration. Non-Ferrous Metals 5.42. The Korba plant is expected to achieve its full capacity of 100,000 tonnes of aluminium along with associated fabricating facilities, before the end of the Fifth Plan. Along with the capacity existing in the private sector, this will contribute to the total capacity of 325,000 tonnes and will be adequate to meet the domestic requirements.

5.43. With the commissioning of the Khetri copper complex, the current smelting capacity is 57,000 tonnes per annum. Provision has been made for the development of mining projects at Malanjkhand and Rakha and expansion of copper mines in the Bihar belt. The Plan envisages a production target of 37,000 tonnes of copper from domestic ore by 1978-79. 5.44. The capacity for zinc production is expected to increase to 95,000 tonnes by 1978-79 with the completion of the expansion of Debari smelter (45,000 tonnes) and installation of a new smelter at Vizag (30,000 tonnes). 5.45. A provision of Rs. 468 crores has been made in the Plan towards the various schemes included for the development of non-ferrous metals and associated facilities. Engineering Industries 5.46. The bulk of the investments is for completing the programme for the production of electric generation equipment and supporting facilities in Bharat Heavy Electricals Limited and for diversification of the production programme of Hindustan Machine Tools for the manufacture of lamp machinery, printing machinery, tractors and watches. Provision has also been made for balancing facilities at Heavy Engineering Corporation and for rehabilitation and diversification programmes of engineering undertakings taken over by the Government. 5.47. A large step up in scooter production is envisaged. The concept of a mother unit supplying components for assembly to a number of subsidiary units has been introduced in the public sector. 5.48. Provision has been made for the Hindustan Shipyard to achieve a production of three ships per annum of 21,600 DWT size. Cochin shipyard will have a capacity of two ships per annum of 75,000 DWT size by 1 977-78. The further expansion to four ships per annum will also be started before the end of the Plan. The establishment of one or more new shipyards is currently under consideration. 5.49. A detailed plan for the development of electronic industry on a scientific basis has been drawn up. Provision has been made for testing facilities and R & D support for the growth of the electronic industry. Fertilisers 5.50. The installed capacity for nitrogenous fertilisers is expected to reach 4.7 million tonnes by 1 978-79. Since a part of this capacity will be realised only in the last year of the Plan, the production target is placed at 2.9 million tonnes. 5.51. The demand for phosphatic fertilisers has not increased to the extent envisaged. Measures have been mitiated to stimulate consumotion of phosphatic fertilisers. Further expansion of phosphatic fertiliser capacity is being planned. 5.52. Apart from the new plants envisaged in the public sector, it is expected that additional capacity will be promoted in the private sector. 5.53. A total provision of Rs. 1 533 crores has been made in the Fifth Plan for fertilser projects as compared to Rs. 1093.28 crores in the draft Plan. This includes a lumpsum provision for new fertiliser projects and also fertiliser projects in the cooperative sector. Oil and Natural Gas

5.54. Programme for the exploration and exploitation is being stepped up to intensify activities in the most promising oil bearing areas where the payback is likely to be quicker. Resources are, therefore, mainly being canalised to the development and production of oil from off-shore and selected on-shore areas. 5.55. A time-bound programme has been drawn to develop production of oil from Bombay High to a rated capacity of 10 million tonnes per annum by 1980-81. Studies for optimal exploitation of resources, transportation, processing and utilisation of the oil and associated natural gas are being currently carried out. 5.56. The draft Plan envisaged a step up of crude oil production from 7.2 million tonnes in 1973-74 to 12.0 million tonnes in 1978-79. The production target for crude oil is now placed at 14.18 million tonnes in 1978-79. 5.57. Taking into account the enlarged programme, the outlays for ONGC during the Fifth Plan, have now been revised to Rs. 1056 crores as compared to Rs. 420 crores in the Draft Fifth Plan. Oil Refining 5.58. The refinery programmes included in the Plan cover the completion of the Kaldia refinery, the expansion of Koyali and the establishment of refineries at Mathura and Bongaigaon. All these projects are expected to be completed in the Fifth Plan excepting Mathura refinery which is scheduled to be commissioned by 1980. By the end of the Fifth Plan, refining capacity will be stepped upto31.5 million tonnes. Provision has been made in the Planter these schemes. Petrochemicals 5.59. The first major petrochemicals complex at Baroda will be completed during the Fifth Plan period. The Aromatic Project of the complex has already been commissioned. The defines and the downstream units are expected to be commissioned between August, 1977 and April, 1978. The polyester filament yarn project of Petrofils Cooperative Ltd. is also expected to be commissioned in phases between March and July, 1977. A provision of Rs. 349 crores has been made for the above mentioned schemes. A Refinery-cum-Petrochemical unit at Bongaigaon has been included in the Plan. Coal 5.60 In consonance with the broad policy frame for the Energy sector drawn up by the Fuel Policy Committee, the Draft Fifth Plan envisaged a production target of 1 35 million tonnes by 1978-79. 5.61. A comprehensive programme of advance action involving bulk purchase of standardised plant and equipment and various technical, managerial and administrative improvement together with a favourable industrial climate has resulted in higher production of coal. 5.62. The demand for coal, however, has not kept pace with production. After keeping in view the outlook for coal consuming industries and a review of the current energy situation, the likely demand of coal at the end of the Fifth Plan period has now been projected at 124 million tonnes. Provision has been kept for an export of 2.5 million tonnes of coal in 1978-79 as compared with 1.5 million tonnes envisaged earlier. Consistent witn the revised outlook in demand, the production programmes are being rephased, in a way which would not hamper the future growth. 5.63. Even with this target, the outlays for the Plan are likely to be of the order of Rs. 1025 crores as against the earlier provision of Rs. 747.60 crores. This includes the requirements for the setting up of 1 0 million tonnes of additional washery Capacity, of which, 4 million tonnes will be operational by 1 978-79.

Two units of low temperature carbonisation plants are also contemplated. Adequate provision has been made for better housing facilities and other welfare activities etc. Lignite 5.64. The draft Fifth Plan made a provision of Rs. 39.80 crores for the Neyveli Lignite Project which was expected to reach a production of 6.0 million tonnes in 1978-79. 5.65. On the basis of the review now carried out, this provision has been increased to Rs. 122.25 crores, mainly on account of escalated cost of the specialised mining equipment which is to be imported. In view of the slippages in the implementation of the programme, a production of 4.5 million tonnes of lignite is now expected by the end of the Fifth Plan period, the production of 6 million tonnes being attainable by 1 980-81. Iron Ore 5.66. The production target envisaged for iron ore in the Draft Plan was 58 million tonnes. Due to slight fill in the domestic demand, the production now envisaged is 56 million tonnes, 5.67. As currently reckoned Donimalai, Bailadila-5 and Kiriburu expansion projects will be commissioned in 1976-77. The development of Meghahatu-buru project for meeting the requirements of Bokaro steel plant at the 4 million tonnes stage is expected to be taken up shortly. Provision has also been made for establishing pelletisation capacity. A notable feature in the field of iron ore development has been the decision to develop the Kudremukh magnetite deposit for a production of 7.5 million tonnes of magnetite concentrates at a cost of around Rs. 567 crores. 5.68. Based on current estimates, a provision of Rs. 107.57 crores, excluding the investments on Kudermukh Project, has been made in the Plan. Consumer Industries Sugar 5.69. To achieve speedy implementation of licences issued and to make new sugar factories and expansion schemes economically viable, incentives were announced in September, 1975. The capacity is expected to increase from 4.3 million tonnes in 1 973-74 to 5.4 million tonnes in 1 978-79. Cotton Textiles 5.70. From a production of 7900 million metres of cloth in 1973-74, the production is expected to go up to 9500 million metres in 1978-79. The share of the mill sector is envisaged at 4800 million metres and the decentralised sector would contribute the balance of 4700 million metres. 5.71. The spinning capacity .is being expanded so as to ensure adequate availability of yarn to the decentralised sector. 5.72. To accelerate the modernisation of the textile industry, a scheme to extend long term finance at concessional rate is being drawn up. A provision of Rs. 104 crores has been made for the rehabilitation and modernisation of the mills of the National Textile Corporation. Cement

5.73. The capacity in the cement industry is expected to go up to 23.5 million tonnes by 1978-79 from 19.7 million tonnes in 1973-74. 5.74. The share of the public sector (Central and States) in the cement industry is expected to increase from 2.30 million tonnes in 1973-74 to 3.88 million tonnes in 1978-79. Drugs and Pharmaceuticals 5.75. The drug industry which was mainly confined to formulation activities and the manufacture of bulk drugs from penultimate intermediates has in a progressive manner entered into the field of manufacture of bulk drugs. 5.76. Public sector has been given a prominent role in the overall development of drug industry. A significant step up in production in the area of antibiotics, synthetic drugs and formulations in public sector is envisaged. Vegetable Oils and Vanaspati 5.77. The production of vanaspati is expected to increase from 449,000 tonnes in 1973-74 to 610,000 tonnes in 1978-79. Paper and Newsprint 5.78. The production of paper and paper board is expected to be stepped up to 1.05 million tonnes by 1978-79 from 0.77 million tonnes in 1973-74 Provision has been made for initiating construction of two new projects in the Central sector. 5.79. Production of newsprint is envisaged to be stepped up to 80,000 tonnes by 1978-79. The additional production will be contributed primarily by the expanded capacity of NEPA and the Kerala Newsprint project in the public sector. 5.80. A provision of Rs. 203 crores has been made in the Central Sector of the Plan for the development of paper and newsprint industry. Industrial and mineral programme relating to atomic energy 5.81. The major programmes in this field are the completion of heavy water plants, the schemes under the nuclear fuel complex and the expansion of public sector undertakings under the Department of Atomic Energy. A provision of Rs. 184.18 crores has been made for these programmes. 5. Village and Small Industries Small Scale Industries 5.82. The number, volume and range of production of small scale industries have continued to grow. Schemes of extension services and increase in institutional finance have materially assisted in this increase. Regional testing centres have been established. A few branches of Small Industries Service Institutes have also been opened. 5.83. For the next two years, adequate provisions have been made both for the continuing schemes and for schemes to be formulated for margin or seed money to facilitate institutional finance and for supply of machines on hire-purchase terms. Industrial Estates

5.84. Of 455 estates functioning by March, 1974, 347 were located in urban and semi-urban areas and the remaining 108 in rural areas. In these estates, about 1 0,1 40 units were functioning providing employment to 1.76 lakh persons. 5.85. Adequate provision has been made for the continuing schemes as well as some new schemes. Khadi and Village Industries 5.86 Ihe employment in Khadi ragistered an increase from 9.78 lakhs in 1974-75 to 10.0 lakh persons in 1975-76. The increase in village industries was from 9.82 lakhs to 11.28 lakh persons. 5.87. A study has recently been completed by the Administrative Staff College, Hyderabad, regarding the viability of some village industries. Meanwhile, provisions have been made for expansion of the existing programmes. Handloom and Powerloom Industries 5.88. Certain special schemes have been initiated for revitalisation and development of the handloom industry as a part of the 20-point Economic Programme. These schemes include intensive development projects (each covering about 10,000 handlooms) and export-oriented production projects (each covering about 1,000 handlooms). 5.89. Adequate provisions for continuing schemes as well as for the States to meet a part of the cost of intensive development projects have been made. For the powerloom industry, provisions have been made for processing facilities and setting up technical service centres. The value of exports of handloom fabrics and manufactures is expected to go up to Rs. 1 40 crores from the current level of about Rs. 1 00 crores. Sericulture 5.90. During the last two years, schemes have been taken up for production of industrial bivoltine mulberry silk in Karnataka, West Bengal, Tamil Nadu and Andhra Pradesh. 5.91. These schemes will be expanded during the next two years. The production of raw silk is expected to increase from the present level of about 3.2 m. Kgs to about 5.0 m. Kgs. by 1978-79 and the exports from Rs. 17.5 crores to Rs. 21.0 crores. Coir Industry 5.92. Recently, a high-powered Study Team has been set up to review the proQress and suggest measures for the development of this industry. Meanwhile, adequate provisions have been made for the continuing schemes. Over the next two years, the value of exports is expected to increase from the present level of about Rs. 19 crores to Rs. 22 crores. Handicrafts 5.93. Recently, a massive scheme for training 30,000 carpet weavers has been initiated which will help to promote larger exports of woollen carpets. Steps have been taken to develop a few selected handicrafts having a high potential for development. 5.94. The value of exports of handicrafts is expected to go upto Rs. 240 crores, as against the present level of about Rs. 190 crores.General

5.95. The levels of production and exports achieved by some industries are shown in Annexure 32. 5.96. The provisions made for the next two years in the Central and the State sectors for different small industries are shown in Annexure 33. 6. Transport and Communications 5.97. A sectorwise break-up of the provisions in the Central sector for Transport and Communications is indicated in Annexure 34. Railways 5.98. The expenditure for the first three years of the Plan is likely to be about Rs. 1149 crores; while an outlay of Rs. 1053 crores is proposed for the next two years. 5.99. By 1978-79, the railways would be equipped to carry an estimated originating freight traffic of 250 to 260 million tonnes, of which the largest single commodity would be 98 million tonnes of coal. While finalising provision for replacement or acquisition of locomotives and wagons, emphasis has been laid on better utilization of existing track and rolling stock capacity by maximising movement in block rakes and reducing turn-round time. 5.100. In regard to non-suburban passanger traffic,outlays have been provided after taking into consideration past trends and possible growth in the next two years. Provision for suburban traffic takes into consideration the optimisation programmes of the Railways. 5.101. Full provisions have been made for completion of on-going traffic and project oriented lines. Some provision has also been made for new lines of promotional character to the extent permitted by the available resources. 5.102. Despite constraints on resources, the electrification projects of Virar-^abarmati, Panskura-Haldia and Tundla-Delhi sections have been completed. By the end of the Fifth Plan, it is expected that the Madras-Trivellore section will be fully electrified while electrification of Waltair-Kirandul and MadrasVijayawada sections would have reached an advanced stage. 5.103. Adequate provision has been made for meeting the Railways' share of the investment in Road Transport Corporations. An outlay of Rs. 50 crores has also been provided for Metropolitan Rail Transport scheme. 5.104. Outlays on the different items of the Railway Development programmes are given in Annexure 35. Roads 5.105. Main emphasis has been on completion of spill over works of the Fourth Plan, which included a number of missing bridges and road links. It is expected that during the last two years of the Plan, work will be largely completed on such of those works which were in progress at the commencement of the Fifth Plan. Besides, provision has also been made for certain new schemes of essential character, particularly those relating to safety of the traffic. 5.106. The revised outlays for the Central programmes are given below. The figures in the brackets refer to spill over schemes. (Rs. crores)

programme (0) 1. 2. 3. 4. 5. 6. national highways strategic roads roads of inter-siate and economic importance highway research and developmer roads in sensitive border areas

estimated expenditure (1974-77) (1) 176.56 {159.79} 14.00 (12.00) 9.24 (9.24) 0.20 1.00

outlays (1977-79) (2) 151.06 ('93.06) 24.00 ('21.00) 20.76 (14.76) 1.80 9.00 15.98

revised plan outlay (3) 327.62 ('252.85) 38.00 (33.00} 30.00 (24.00} 2.00 10.00 25.00

special road/bridge works 9.02 of national significance mainly for second Hooghly bridge at Calcutta tools and plants Total 7.82 217.84 (181.03)

7. 8.

5.00 227.60 (1128.82)

12.82 445.44 (309.85)

5.107. In the State Plans also emphasis has been laid on completion of the spill over works so that investments already made fructify early. Provision has also been made for rural roads under the Minimum Needs Programme. 5.108. The likely expenditure during the first three years, 1974-77 is reckoned at about Rs. 479.32 crores and the outlays for the next two years are kept at Rs. 423.04 crores. Road Transport 5.109. The main scheme under the Central sector road transport relates to the Delhi Transport Corporation. At the beginning of the Fifth Plan, the D.T.C. had a total fleet of 1495 buses. During the first three years, the Corporation is likely to acquire 1137 buses, including 682 buses for augmentation and 455 buses for replacement. Provision has been made for acquisition of additional 389 buses based on consideration of traffic growth and efficient fleet utilisation and for construction of additional depots and terminals. A total outlay of Rs. 29.77 crores is envisaged against the Draft Fifth Plan provision of Rs. 23.00 crores. 5.110. In the State sector the estimated expenditure on Road transport during 1974-77 is likely to be Rs. 197.08 crores and an outlay of Rs. 205.87 crores is provided for the next two years. Major Ports 5.111. The traffic handled at Major Ports is expected to increase from 65.84 million tonnes in 1974-75 to about 77 million tonnes in 1978-79. The main increase is expected to be in iron ore and general cargo, 5.112. With the completion of the major spillover projects at Haldia, Madras, Visakhapatnam, Marmugao and Mangalore during 1976-77 the capacity for handling traffic in bulk commodities like iron ore, coal and fertilisers will be considerably augmented. Provision has also been made for work in connection with replacement of oil pipeline at Bombay, Salaya off-shore terminal, and Kudremukh Iron ore export at Mangalore.

5.11 3. The draft Fifth Plan, provided an outlay of Rs. 308 crores for major ports including about Rs. 200 crores for spill-over schemes. The total outlay now envisaged is Rs. 521.46 crores including Rs. 363.55 crores for spill-over schemes. Minor Ports 5.114. In the revised Fifth Plan, an outlay of Rs. 49,67 crores has been provided for minor ports including Rs. 27.29 crores in the Plans of States and Union Territories. The provision for Central schemes is on account of Minor Ports Survey and Dredging Organisation and development of port facilities in the Andaman and Nicobar Islands and Lakshadweep. Shipping 5.115. In view of a number of major and far-reaching developments such as decline in the import of crude oil, opening of the Suez Canal, non-materialisation of the projected coastal movement of coal, and escalation in the price of ships, the target for shipping tonnage has been reduced from 8.6 million GRT to 6.5 million GRT. Details of the operative tonnage, tonnage on order and tonnage to be acquired are shown in Annexure 36. 5.116. Indian ships, whether new or old are acquired partly by the Shipping Companies out of their own resources and partly through loans granted by the Shipping Development Fund Committee (SDFC) at subsidised rates of interest. A provision of Rs. 410 crores for the Plan period has been made as against the original estimates of Rs. 243 crores. 5.117. Suitable provision has also been made for expansion of training facilities and programmes for the walfare of seamen and for loan assistance to the sailing vessels industry. Inland Water Transport 5.118. Outlay of Rs. 14.73 crores for next two years includes development of Rajabagan Dockyard, operations of the Central Inland water Transport Corporation and operation of river services on the Ganga. In the Centrally Sponsored programme, the provision of Rs. 5.83 crores is mainly for dredging of Cum-berjua Canal in Goa, ferry services on Hooghly, improvement of Champakara-Neendakara Canal in Kerala and improvement of Buckingham Canal in Andhra Pradesh and Tamil Nadu. 5.119. In addition, a provision of Rs. 7.75 crores has been made for the development of Inland Water Transport in the States and Union Territories. Light Houses 5.120. As against the draft Fifth Plan provision of Rs. 12 crores for lighthouses and lightships, the revised provision is Rs. 1 3.66 crores. Of this, the provision for 1977-79 is Rs. 6.13 crores. The revised outlay includes Rs. 6.53 crores for Salaya Decca Chain and Floating Aids for approach channel to the Salaya Off-shore Terminal. Air-India 5.121. One Boeing 747 aircraft joined the Air India fleet of 5 Boeing 737 and 9 Boeing 707 during the Plan period. The outlay of Rs. 38.65 crores during "1977-79 has been made to cover this liability as well as other supporting facilities including interim arrangements towards establishing real time computer system. Indian Airlines

5.122. Indian Airlines have already acquired during this Plan period 6B-737 aircraft and placed orders for 3 Air Buses (equivalent to 9B-737 aircraft) which are expected to join Indian Airlines fleet shortly. The old Turboprop aircraft are also to be replaced. A total provision of Rs. 99.45 crores has been made to cover the payment liability of the aircraft acquired or to be acquired and for interim arrangements towards use of real time computer facilities. International Airports Authority of India 5.123. A sum of Rs. 27.67 crores has been provided for the programme of IAAI in the Fifth Plan. This includes a provision of Rs. 11 crores for a new International and Cargo Terminal Complex at Bombay. Civil Aviation Department 5.124. The provision of Rs. 65.15 crores inter alia includes outlays on aeronautical communication services and works at aerodromes. Under aeronautical communication services, provision has been made for augmentation of calibration facilities and for improving the aeronautical fixed and mobile telecommunication net work. These would further improve the safety of aircraft operation. As regards works at aerodromes, the emphasis in the Draft Fifth Plan on the development of existing aerodromes rather than the taking up of new works has been continued. Meteorology 5.125. The Plan provision of Rs. 39.58 crores includes the completion of 2.36 M Telescope by the Indian Institute of Astro-physics. This also includes a provision of Rs. 20 crores for Monsoon 1977 experiment, Monex 1979 and INSAT programme. Tourism 5.126. A provision of Rs. 23.62 crores has been made for the programme of Department of Tourism and that of Rs.17.12 crores for the India Tourism Development Corporation (ITDC). The programmes under the Department of Tourism include loans to hotel industry in the private sector, integrated development of tourist resorts at Kovalam, Gulmarg, Goa and KuliiManali and construction of a number of youth hostels,tourists bungalows and forest lodges. The programmes under ITDC include expansion of hotels and construction of travellers' lodges, motels and cottages. 5.127. In the State Sector also a provision of Rs. 33.21 crores has been mt.de for the development of tourism. Postal Services 5.128. The Plan provision of Rs. 24.38 crores apart from covering the expenditure on opening or upgradation of 2520 post offices during the first three years of the Fifth Plan, is expected to enable opening or upgrading of additional 3800 post offices in the next two years. Telecommunications 5.129. The revised Plan outlay of Rs. 1129.45 crores would enable creation of additional exchange capacity of 8.42 lakh lines. 5.130. Adequate funds have been set apart for expanding the telegraph system and opening of about 45 Telex exchanges with 10,000 lines capacity. Overseas Communication Services

5.131. The revised provision of Rs. 35.87 crores includes funds for INTEL-SAT Dehradun Earth Station, SPC Telex Exchange at Bombay and Indo-USSR Tropo Link. Token provisions have also been made for a wide-band submarine Link between India and Malayasian Peninsula as well as the new schemes relating to Indo-Afghan Tropo-scatter Link, Andaman Earth Station and Third Earth Station at Calcutta. I.T.I, and Hindustan Teleprinters Limited 5.132. Adequate provision has been made for the continuing and the expansion programmes of these industries. 5.133. The statement below gives the programme-wise outlays: Fifth Plan Outlay : Communications programme (0) 1. P and 7" Department (i) postal services (ii) telecommunications 2. other communications (i) indian telephone industries (ii) overseas communications service (iii) hindustan teleprinters limited (iv) monitoring organisation (for radio frequency management) (v) INSAT 3 Total outlay (Rs. crores) (1) 1153.83 24.38 1129.45 112.78 52.85 35.87 3.00 1.06 20.00 1266.61

Sound Broadcasting 5.134. The revised provision of Rs. 37.63 crores lays emphasis on completion of continuing schemes costing Rs. 32.52 crores. The balance provision is for initiating action for new Transmitter schemes, improvement of studio facilities, software requirements and construction of staff quarters. Television 5.135. The revised Fifth Plan outlay for TV is Rs. 50.98 crores, of which Rs. 33.41 crores is for continuing schemes and Rs. 17.57 crores for new schemes. The new schemes include setting up of 2 transmitters of 10 KW each at Hyderabad and Jaipur and 4 low-power transmitters of 400 watts at Gul-barga, Sambalpur, Muzaffarpur and Raipur. These transmitters would serve about 40 per cent of the villages covered under the Satellite Instructional Television Experiment (SITE) programme after the termination of Experiment. For Community Viewing, provision has been made for about 3000 conventional TV sets and modificatipn of about 2400 special sets deployed under the SITE programme. The Plan also provides for software schemes to improve the quality of programme. 7. Education

5.136. Plan outlays for education during the first three years of the plan have been somewhat modest because of the economic situation but the growth in the total governmental expenditure on education, both plan and non-plan, must be considered substantial. The total expenditure is estimated to rise from Rs. 1450 crores in 1974-75 to about Rs. 2287 crores in 1 976-77. 5.137. Elementary Education : Very high priority has been given to this programme. Adequate provision has been made for additional enrolment in terms of teaching personnel and construction of class-rooms, especially in backward areas. 5.138. The table below indicates the additional enrolments, which are likely to be achieved by the end of the Fifth Plan : Growth of Enrolment (figures in lakhs) CLASSES I-V boys girls (1) (2) 396 245 (100) (66) 37 33 30 63 308 (79) CLASSES VI-VIII boys girls (4) (5) 107 (48) 46 (22) 17 16 33 140 (59) 12 13 25 71 (32)

1. 2. 3. 4. 5.

(0) 1973-74 (position) *

total (3) 641(84) 70 60 130 771(96)

total (6) 153 (36) 29 29 58 211 (46)

1974-77 (additional achievemenit) 1977-79 (proposed additional 30 target) 1974-79 (additional achievement 67 line 2+3) 1978-79 (likely position) 463 (111)

5.139. In addition to the expansion of educational facilities, provision has been made for curricular reorientation, work experience and strengthening of educational institutions for teachers. 5.140. Secondary Education : The existing trend in the increase of enrolment has been kept in view. Against the additional enrolment of 1 5 lakhs likely to be achieved in the first three years, an enrolment target of another 15 lakh in classes IX-XI/XII has been proposed for 1977-79. The percentage of children of the age-group 1.4-1 71 8, enrolled in classes IX-XI/XII will increase from 20 in 1973-74 to 25 in 197879. While making provisions, note has been taken of the requirements on account of the introduction of the new pattern of education. 5.141. After detailed preparatory work, vocationalisation at the secondary stage will be initiated in selected areas during the next two years so that well-conceived and fully thought-out programmes are implemented. 5.142. University Education : The main emphasis in university education is on consolidation and improvement. Provision is, however, being made to provide additional educational facilities to weaker sections of society and in the backward areas. Facilities through evening colleges, correspondence courses and private study will be expanded. Post-graduate education and research will continue to be strengthened through the development of centres of advanced study, science service centres, common computer facilities and regional instrumentation workshops. Programmes of faculty development, like summer institutes, seminars and orientation courses will be stepped up. These figures are taken from Draft Fifth Plan. The Third Education Survey, however, indicated that the enrolments in classes l-V-andVI-VIII in 1973-74 were 611 lakhs (80%) and 141 lakhs (33%) respectively. Assuming the Survey enrolments as the base figures, the loial enrolment in 1978-79 in Ihese iwo groups would be 741 lakhs

(92%) and 199 lakhs (43 %).Figures in parenthesis indicate the proportion of children of respective age groups enrolled in Classes I-V and VI-VIII. 5.143 Non-Formal Education : With the strengthening of existing programmes of non-formal education, about 16 lakh participants are expected to be covered under these programmes. The existing programmes are intended to be reviewed. 5.144. Scholarships: 12,000 awards are being given every year from 1974-75 onwards, from the non-plan budget. The number of annual awards under the National Scholarship Scheme was 3,000 in each of the first two years of the Plan and 5000 in 1 976-77. Provision has been made to increase the number to 7,000 in 1 977-78 and to 10,000 in 1 978-79. Provision has also been made for continuing 20,000 yearly national loan scholarship awards during the Fifth Plan period. The number of national scholarships for talented children from rural areas, which was 1 0,000 each year during 1 974-77, will be increased to 1 5,000 per year during 1 977-79; thus increasing the number of scholarships per community development block from 2 to 3. Other programmes of scholarships will be continued. 5.145. Language Development: Provision has been made for the appointment of 2000 additional Hindi teachers in middle and secondary schools during 1977-79, in non-Hindi speaking States. These are in addition to 4,000 teachers appointed during 1974-77. This programme will be reviewed with a view to determining its benefits. The Central Institute of Indian Languages (Mysore), the Kendriya Hindi Sansthan (Agra), the Rashtriya Sanskrit Sansthan (New Delhi) and the Central Institute of English and Foreign Languages (Hyderabad) will be further developed. 5.146. Other Programmes : Provision has been made for strengthening of the existing Nehru Yuvak Kendras and for setting up some more Kendras at approved places. While the coverage of the National Service Scheme will be expanded. National Service Volunteers Scheme is expected to be launched on a pilot basis. Facilities for games and sports, coaching camps and rural sports will be expanded. Provision has been made for the development of Central Libraries. 5.147. Technical Education : Generally, the emphasis is on consolidation and quality improvement in terms of faculty development, replacement of obsolete equipment and diversification of courses. Centres of studies in material science, cryogenic engineering, energy studies and ocean engineering are expected to be established in close collaboration with user agencies. Provision has been made for augmenting physical facilities at the existing Institutes of Management, and preparatory work will be started for establishment of the fourth Institute at Lucknow. Reginal Engineering Colleges and the Engineering Departments in the universities will be-further developed. 5.148. Cultural Programmes : Provision has been made, inter alia, for further development of the three national academies of Sahitya, Sangeet Natak and Lalit Kala, propagation of culture among college and school students, revision of district gazetteers and development of various activities of the Archaeological Survey of India. 5.149. 20-Point-Socio-Economic Programmes : Three components of this programme are provision of books and stationery to students at cheaper rates, supply of essential commodities to hostel students at subsidised prices and expansior if apprenticeship training programme. The capacity of the textbook printing presses is being developed further. Book banks will continue to be established in educational institutions. The coverage of apprenticeship scheme is being expanded. 5.150. Outlays : For completing the various tasks related to educational development, an outlay of Rs. 1285 crores has been provided for different sectors as indicated below : (Rs. crores)

sub-head (0) 1. 2. 3. 4. 5. 6. 7. 8. 9. elementary education secondary education university education special education other programmes toial (general education) technical education art and culture Total education

likely expenditure 1974-77 (1) 180 111 140 9 57 497 75 16 555

proposed 1977-79 (2) 230 139 152 9 65 595 81 21 697

proposed fifih plan outlay (3) 410 250 292 18 122 1092 156 37 7285

In relation to the first three years, the proposed outlay in the next two 'ears marks a considerable step-up. 8. Health, Family Welfare Planning and Nutrition Health Central Sector 5.1 51. In the draft Fifth Plan, an amount of Rs. 252.79 crores was provided for this sector The expenditure during the first three years is likely to be Rs. 1 52-93 crores. An outlay of Rs. 182'90 crores has been recommended for the last two years after assessing the performance of various major on-going programmes and after keeping in view the broad aspects of health strategy. 5.152. Among the Centrally sponsored schemes National Malaria Eradication Programme has been allocated Rs. 196-44 crores as against the original provision of Rs 96-71 crores in the Draft Fifth Plan. A substantial increase in the outlay for this programme has become necessary to contain the disease according to a revised strategy. Provision has also been made for more effective implementation of National Leprosy Control Programme and the National Scheme for prevention of impairment of vision and control of blindness. A pilot research project to develop a strategy for control of filaria in rural areas has also been included. Adequate provision has been made during 1 977-79 for establishing combined food and drug testing laboratories and for giving Central assistance to existing food laboratories in the States. State Sector 5.153. An outlay of Rs. 543 21 crores was provided in the draft Plan for various health programmes under the States and Union Territories. The total likely expenditure for the first three years of the Fifth Plan is estimated at Rs. 159-92 crores. For the remaining two years of the Fifth Five Year Plan i.e., 1977-79, an outlay of Rs. 185-91 crores has been recommended. 5.154. These provisions include the requirements of the on-going programmes and the reed for reasonable expansion, extension and development of rural health services. It has been ensured that all the primary health centres and sub-centres in the country would get drugs at the enhanced level of Rs.1 2,000/-per PHC and Rs. 2,000/- per sub-centre per annum. Adequate provision has also been made for medical education.

General 5.155. The revised total Fifth Plan outlay for the Health Sector thus works out to Rs. 681.66 crores. The break-up of the outlay for the Central and State Sectors is given below : (Rs. crores) scheme 1974-77 anticipated expenditure (1) 28.60 124.33 159.92 372.85 1977-79 proposed revised fifth outlay plan outlay (2) 39.06 143.84 185.91 368.87 (3) 67.66 268.17 345.83 681.66

(0) 1. central 2. centrally sponsored 3. siaies/U.Ts 4. Total Family Welfare Planning Programmes

5.156. In the draft Plan an amount of Rs. 516.00 crores was provided for programmes relating to family welfare planning. The likely expenditure during the first three years of the Fifth Plan is expected to be of the order of Rs. 237.65 crores. 5.157. An outlay of Rs. 259'71 crores has been recommended for the period 1977-79. The family planning programmes wilt be carried forward in an integrated manner alongwith Health,Maternity and Child Health Care and Nutrition services on the basis of the strategy outlined in the draft Fifth Plan. Firm and bold steps envisaged in the National Population Policy to improve the tempo of the programme has been kept in view in recommending the revised outlays. To cope with the increasing demand for sterilisation, facilities will be expanded at 1000 selected Primary Health Centres and 325 Taluka level hospitals during 1976-79. Two hundred additional post-partum centres beyond the original targets in the draft Fifth Plan are also proposed to be opened. Another unit of the Hindustan Latex Ltd. will be set up at Farakka to meet the increased demand of Nirodh. The India Population Project with Sl DA/I DA assistance will be carr.pleted by the end of the Fifth Plan. Special multi-media motivation campaigns on pilot basis will be launched in Uttar Pradesh, Andhra Pradesh, and West Bengal. Maternity and child health programmes will be vigorously pursued and furds for this purpose will be made available on the basis of performance. Research and evaluation facilities will be strengthened. Funds for completion of incomplete buildings and for construction of essential buildings for Rural Family Welfare Planning Centres have been provided. 288 New Rural Family Welfare Planning Centres will be opened in a phased manner. 5.158. A total provision of Rs. 497.36 crores has been envisaged in the revised Fifth Plan. Summary of the outlays is given in the enclosed statement (Annexure 37). Nutrition Central Sector 5.159. Indraft Fifth Ptan, an amount of Rs. 70 crores was provided in the Central Sector. Rs. 50 crores were earmarked for the Subsidiary Food and a Nutrition Scheme of the Department of Food, and Rs. 20 crores for the Applied Nutrition Programme of the Department of Rural Development. Nutrition Schemes of the Department of Food

5.160. The likely expenditure during the first three years of the Fifth Plan is placed at Rs. 6.53 crores. Under the revised Fifth Plan an outlay of Rs. 6.70 crores has been provided during 1977-79 for production of nutritions foods. An amount of Rs. 1.27 crores has also been recommended during 1977-79 for other schemes like fortification of Food Stuffs, nutrition education through mass media, Pilot Research Projects etc. An outlay of Rs. 7.97 crores has thus been recommended for 1977-79 making up a Fifth Plan provision of Rs. 14.50 crores. Applied Nutrition Programme (Deptt. of Rural Development) 5.1 61. The outlay of Rs. 20 crores provided in the draft Fifth Plan was meant for providing Central assistance to the on going Applied Nutrition Blocks, opening of 700 new blocks and maintenance of post operational blocks for one year after existence for a period of five years. Due to constraint of resources in the social Services Sector only 192 blocks were set up in the first two years (1974-76) of the Plan. The likely expenditure during the first three years of the Plan is Rs. 4.48 crores. A sum of Rs. 8.51 crores has been recommended for 1977-79. The total outlay under the revised Fifth Plan works out to Rs. 1 2.99 crores. State Sector 5.1 62. In the draft Fifth Five Year Plan, an amount of Rs. 330.00 crores was provided for the States and Union Territories, for the supplementary Feeding programmes, i. e.. Mid-day Meals Programme for the School going children and Special Nutrition Programme for the children in the age group of 0-6 years and expectant and lactating mothers. Likely expenditure during the first three years of the Plan is placed at Rs. 44.24 crores. The slow progress in the initial years of the Fifth Plan was mainly due to the financial constraint and non-availability of funds in the non-Plan budgets of the State Governments for meeting cost of food, administration and transport for the beneficiaries. For the remaining years of the Fifth Plan adequate provision has been made from the non-Plan resources of the State for beneficiaries cf special nutrition programme at the end of the Fourth Plan. After taking into account a reasonable expansion, a provision of Rs. 43.94 crores has been recommended by Planning Commision for 1977-79-The revised outlay under the Fifth Plan thus works out to Rs. 88.18 crores. A statement showing programme-wise break-up under the revised Fifth Plan is attached (Annexure 38). 9. Urban Development, Housing and Water Supply Urban Development 5.163. Provision made in the State Plans for integrated Urban Development are being supplemented by funds provided for the scheme of integrated Urban Development in the Central Sector. This scheme provides loan assistance to State Governments for developing the necessary infrastructure. It is expected that over a period of time the State Governments will be able to build up a corpus of seed money for expansion programmes 5.164. Urban Development progrmmes were taken up in the three metropolitan cities of Calcutta, Bombay and Madras and nine other cities in 1974-75. Additional six cities were taken up in 1975-76 and it is expected that six more will be taken up during 1976-77. Work for the preparation of Plans for some other cities is in hand . 5.165. In view of the progress made so far, total provision of Rs. 256.13 crores has been made for Urban Development for next two years against a likely expenditure of Rs. 249.33 crores during 1974-77, as indicated in Annexure 39.Housing 5.166. The main thrust of the programmes in the Fifth Plan is directed towards ameliorating the conditions of the backward sections of the society. This is sought to be achieved by augmenting the programmes for the construction of housing colonies by State Housing Boards and by taking up on a large scale a

programme for the provision of house-sites for landless labourers in rural areas. While the bulk of this programme is being undertaken in the State Plans, the activities of the Housing and Urban Development Corporation in the Central sector are being geared up to meet the expanding demand. A provision is being made to increase the Equity participation in HUDCO to enable it to generate resources of the order of Rs. 150 crores in the Fifth Plan period. Separate provisions have been made for the scheme of subsidised housing for plantation labourers and Dock labourers. AdeqLate emphasis has also been placed on research and development activities for generating better and cheaper designs. The outlays for various programmes in the State and Central sectors have been indicated in Annexure 40. Water Supply and Sanitation Rural Water Supply 5.167. The main objective is to provide safe water supply in difficult and problem villages. At the end of the Fourth Plan period, it had been estimated that there were 1.13 lakhs of such villages. It is expected that in the first three years of the Fifth Plan with a provision of Rs. 201.10 crores, about 57,800 villages would have been covered. The allocation made for the remaining two years is on the basis of providing safe water supply for additional 53,900 villages. The provision which has been made is of the order of Rs. 180.14 crores (inclusive of Rs. 1 57.87 crores under the MNP). The revised Fifth Plan outlay would now be Rs. 381.24 crores. Urban Water Supply and Sanitation 5.168. Particular emphasis is being laid on completion of spill over schemes. In the first three years with an investment of Rs. 257.54 crores, about 266 towns are likely to be covered with water supply and 46 towns with sewerage and drainage systems. With an outlay of Rs. 281.63 crores for the remaining two years of the Fifth Plan, about 254 towns are likely to be covered with water supply and 38 with sewerage and drainage systems. The outlay mentioned above will be supplemented from the Central sector scheme of Integrated Urban Development in cities of national importance such as Bombay, Calcutta, Madras, Hyderabad, Ahmedabad, Bangalore, Kanpur, Lucknow, Agra, Allahabad, Varanasi, etc. The outlay in the Fifth Plan amounts to Rs. 539.17 crores against the outlay Rs. 431.00 crores in the Draft Fifth Plan. 5.169. The revised Fifth Plan also provides for an outlay of Rs. 10.27 crores for supporting programmes such as public Health Engineering training to train about 3000 Public Health Engineering personnel and mechanical composting to set up 27 mechanical compost plants along with 60 mechanical sieve plants in different cities. A provision also exist for converting about 30,000-35,000 dry latrines into sanitary latrines. 5.170 The revised outlays for water Supply and sanitation are given in Annexure 41. 10. Craftsman Training and Labour Welfare Central Plan 5.171. In the draft Fifth Plan, an amount of Rs. 14.57 crores was provided in the Central Plan. The likely expenditure during the first three years of the Fifth Plan is placed at Rs. 4.01 crores. 5.172. For the two year period 1977-79 a provision of Rs. 10.17 crores has been made. This will cover (i) the requirements of the major on-going training institutions such as the Central Staff Training and Research Institute, the Foreman Training Institute, and the Central Training Institutes for instructors ; (ii) the strengthening/extension of the Advanced Training Institute ; (iii) the expansion of the Apprenticeship Training programme ; (iv) Vocational Training in Women's occupations ; and (v) Sche.nes relating to research, surveys and studies to be undertaken by various institutes. Flans of States Union Territories

5.173. In the draft Fifth Plan, an amount of Rs. 42.37 crores was provided for States and Union Territories. The likely expenditure during the first three years of the Plan is placed at Rs. 15.69 crores. 5.174. For the two year period 1977-79, an .outlay of Rs. 20.27 crores has been suggested keeping in view the requirements of (i) the industrial training institutes ; (iiy-the expansion of the Apprenticeship Training Programmes in the establishments ; (iii) the strenghtening of the employment service organisations; (iv) the setting up of labour welfare centres, and promoting safety measures; and (v) the Employees' State Insurance Scheme, Revised Fifth Plan Outlays for Craftsmen Training and Labour Welfare (Rs. lakhs) draft fifth five year plan (0) centre state union territories Total (1) 1457 3751 486 5694 1974-77 anticipated expenditure (2) 401 1407 162 1970 1977-79 proposed outlay (3) 1017 1685 342 3044 revised fifth plan outlay (4) 1418 3092 504 5074

ll. Hill and Tribal Areas, Backward Classes Social Welfare and Rehabilitation Hill Areas 5.175. This scheme refers to the hill regions of Assam, Tamil Nadu, U.P., West Bengal and the Western Ghats region. Programmes of singnificance are funded party from the State Plan and partly from the subplan allocations. During the fisrt three years of the Plan, Central allocations would be of the order of Rs. 76 crores while the States are likely to invest about Rs. 68 crores. 5.176. With the experience gained so far, the programme is now expected to gather momentum. A provision of Rs. 94 crores is earmarked for the next two years in the Central Plan. Tribal Areas 5.177. Tribal sub-plans incorporating programmes of particular significance to the tribal economy are being prepared for areas, with large concentration of Scheduled Tribes, in 16 States and 2 Union Territories. These programmes are funded through provisions in the State Plans, and Central assistance. So far about 40, out of 145 Integrated Tribal Development projects have been formulated and an amount of Rs. 65 crores is likely to be spent during the first three years of the Plan. 5.178. Initial difficulties are now expected to be overcome and it is expected that the rest of the lTDPs would be formulated and implemented in the remaining period of the Fifth Plan. On this basis, a provision of Rs. 125 crores of Central assistance is being made for the next two years. 5.179. Priority has been accorded to regional schemes of agriculture, power and communications forwarded by NEC for securing a balanced development of the north-eastern region. It is expected that in the first three years an expenditure of Rs. 28 crores would be incurred on such schemes. Due to initial difficulties in identifying and implementing schemes, the programme has had a slow start. It is, however, now gathering pace. A provision of Rs. 62 crores has been kept for the next two years.

5.180. A statement indicating the outlays for these programmes is given below : (Rs. crores) anticipated expenditure 1974-77 (0) 1. Hill areas 2. N.E.C. 3. tribal areas 4. total (1) 76 28 65 169 outlays for 1977-79 (2) 94 62 125 281 total fifth plan (3) 170 90 190 450

Welfare of Backward Classes 5.181. The revised Fifth Plan outlays for the Centre and the States have been raised to Rs. 119 crores and Rs 208 crores respectively. The details are given in Annexure 42. In the Central Plan, emphasis has been placed on post-matric scholarships, schemes for coaching of students and girls' hostel. In the State Plans, provision has been made inter alia for educational incentives, subsidised housing, various agricultural programmes and requirement of development Corporations. Social Welfare 5.182. The revised Fifth Plan outlays for the Centre and States are Rs. 63.53 crores and Rs. 22.60 crores respectively. Details are given in Annexure 43. 5.183. These outlays are related to the progress reported in the implementation of the various schemes. Care has been taken to ensure that important programmes like Intergrated Child Care Services, Working Girls Hostels, Scholarships for Handicapped Persons in the Central Sector and women and child welfare Programmes and Programmes of Social Defence in the State sector are provided adequate funds. Rehabilitation 5.184. The Draft Fifth Plan envisaged the resettlement of 65827 families. This figure has now been reassessed at 67067 familes. It is expected that against an overall expenditure of Rs. 47.62 crores in the first three years of the Plan, 35767 families would have been recently resettled. The outlays for the next two years of the Fifth Plan are based on the following considerations : (i) Sri Lanka : Of the expected 28,434 families, 16,434 have so far been resettled at a cost of Rs. 14.17 crores. It is expected that 12,000 families would be resettled during the next two years at an approximate cost of Rs. 14 crores. (ii) Dandakarnaya : Of the 9120 families in camp, 3120 have been resettled in the first three years at an approximate cost of Rs. 1 3.54 crores. It is expected that 6000 families would be resettled in the remaining period of the Plan at an approximate cost of Rs. 12 crores. Besides the direct cost of resettlement, the outlays include expenditure on major irrigation projects and other infrastructure development. (iii) Residual problems of rehabilitation in West Bengal : On the basis of the recommendations contained in the report of the working Group set up by the Department of Rehabilitation, a provision of Rs. 10.20 crores has been made. This is based on an assessment that besides acceleration of the SFDA/MFAL programmes in areas where these migrants were concentrated and outlays required for the provision of

medical facilities, 8000 plots in the colonies of displaced persons located in the Calcutta Metropolitan District and 4000 other urban plots would be developed. (iv) Other Schemes : With regard to progammes for the resettlement of repatriates from Burma, West Pakistan, Uganda, Zaire and migrants from Indian enclaves in former East Pakistan, an expenditure of Rs. 1 7.73 crores has been incurred in the first three years of the Plan, to resettle 1 5843 families. It is expected that in the remaining two vears 11 300 families would require resettlement for which a provision of Rs. 1 7.39 crores has been made. 5.185. Scheme-wise outlays provided in the Fifth Plan are given in Annexure 44. 12. Science and Technology 5.186. In finalising the Fifth Five-Year Plan for Science and Technology (S&T) an attempt has been made to restructure research programmes as far as practicable into projects with predetermined time spans, costs and expected benefits. In a departure from previous practice, the S&T programmes of the different Ministries were the subject of separate discussions at which emphasis was placed on aligning research programmes to conform more closely with plan priorities and promoting quicker interaction between the users of research and the research agencies, so that problems ara more sharply defined and transfer of technology is facilitated. 5.187. Particular attention Fs expected to be paid to fuller use of existing facilities, avoiding of unplanned duplication of research into similar problems by different agencies, minimising sub-critical funding by spreading resources over too many projects, and closer monitoring of research programmes right up to the stage of their application in the field. 5.188. The thrust of the various sectoral programmes broadly remain as outlined in the draft Fifth Plan. In agriculture, specific emphasis will be placed on programmes to control crop diseases, crop sequencing, dry farming, agricultural implements, post harvesting technology etc. New agro-industrial complexes, setting up of a fish farm and increased support to agricultural institutes, animal sciences and fisheries institutes are envisaged in the Plan. Programmes for improving the technology used in village and rural industries are proposed to be intensified. Activities proposed cover bee keeping, pottery, palm gur, gur and khandsari. To acquire a closer insight into the problems of optimal management of water resources, an Institute of Hydrology is proposed to be set up. Steps will be taken to see that central R & D irrigation schemes are not sub-criticaliy funded and a mechanism is set up to see that research findings are expeditiously applied in the field. 5.189. In the area of energy, a multi-pronged approach to develop biogas technology, as well as new sources such as solar energy, tidal and wind power has been initiated. A major programme on magneto hydro dynamics is being undertaken as an inter-institutional project. Programmes for improved mining techniques, mine safety, transportation and gassification of coal have been given priority. Programmes for developing stowing materials, improved instruments, and processes for upgrading coal are being funded. 5.190 In power engineering, test facilities, specially those connected with high voltage/DC transmission lines have been given special attention. No significant departures from the draft Fifth Plan programmes have been proposed in the research programmes of the Department of Atomic Energy except for the power reactor fuel reprocessing plants and investment in facilities for making seamless steel tubes for ball bearings and power plants. 5.191. In steel, the major thrust in use of S&T has been to improve the productivity and capacity utilisation of the steel plants, utilise low grade materials, improve refractory quality, develop new alloys and work on new techniques for making sponge iron. A wide range of chemicals particularly pesticides, drugs, and intermediates hitherto imported, is being developed by several institutions, in particular by CSIR

laboratories and the public sector companies in these fields. In heavy engineering, the setting up of a research institute for welding deserves special mention. 5.192. Special emphasis is being paid to surveying and research on developing the country's natural resources. The programmes of bodies such as the National Remote Sensing Agency, geological and other surveying agencies and National Institutes of Oceanography have been given high priority. These are being supplemented by the programme of the Department of Space for launching satellite with remote sensing capabilities and institutional research facilities for petroleum exploration and reservoir studies. Tree breeding and prevention of disease in important tree species have been given special attention. In meteorology, apart from strengthening the existing institutes, a major new programme is India's participation in Monsoon 77 in collaboration with USSR and Monex (monsoon experiment) as a part of a world-wide study of the factors which affect the weather. Provision has been made for INSAT-1, the proposed Indian-owned geo-synchronous satellite which will provide a variety of meteorological data. 5.193. In health, the focus has been placed on research into new methods of family planning, integrated system for delivery of health care services to infants, and control and prevention of communicable diseases including malaria, tuberculosis and cholera. 5.194. The priority area in housing and urban development is the development of new low cost housing designs and materials, rural sanitation and waste water treatment. Agencies concerned with environmental protection have been given due attention. 5.195. In the area of electronics, substantially more funds will be given to various institutions for research in the indigenisation of a large variety of electronic components. In addition, the Department of Electronics will establish major multi-user regional computer centres in certain metropolitan cities and set up a corporation for making semi-conductor devices. Support will be given to developing the infrastructure for electronic standards and testing techniques at various institutes like NPL and the national test houses. The Department has already established corporations for maintaining computers & developing trade and technology in electronic items. Tele-communication research will concentrate on indigenising many of the components hitherto imported and development work on electronic communication systems, the major emphasis being on instruments, transmission system and exchange equipment. An Asian Telecommunication Training Centre is proposed to be set up at Ghaziabad. 5.196. The major efforts in space research will be to gear up research work and develop components to enable a series of variants of the SLV 111 launcher being produced and more advanced satellites being launched in collaboration with other countries. The proposed INSAT-1 which, in addition to meteorological equipment will have various tele-cummunication and other capabilities, will give added relevance to these programmes. 5.197. Under the Department of Science & Technology, plans have been finalised for making a beginning with the national information system on science and technology (NISSAT). Provision has been made for the manufacture of fer rites and electronic ceramics by a new company and for a substantial step-up in funds for sponsored projects under the Science and Engineering Research Committee. 5.198. Considerable effort is proposed to be put into developing new instruments for operation, process control, measurement and research by a variety of agencies. Coordinating inputs are proposed to be provided by the Instrument Development Division of the Department of Science & Technology. 5.199. Testing facilities under agencies like the National Test House and Indian Standards Institution will be strengthened. 5.200. In order to stimulate indigenous research, industrial licensing regulations have been liberalised in the case of industries which are proposed to be set up based on R&D developed in-house or by national laboratories. The question of levying R&D cess is under consideration.

5.201 A Department wise distribution of the outlays for Science and Technology is indicated in Annexure 45. A provision of Rs. 5 crores has been included in the outlays of each of the Ministries of Information & Broadcasting and Tourism & Civil Aviation (Meteorology) for INSAT.

6th Five Year Plan

Chapter 9:

AGRICULTURE AND ALLIED SECTORS

The agricultural growth pattern during the Sixth Plan period has to take into account the immediate as well as the long-term needs of agricultural commodities both for domestic consumption and for export. The highest priority will be accorded to bridging the gap prevailing between .actual and potential farm yields even at current levels of technology through the removal of the constraints responsible for this gap. The untapped yield reservoir is quite high in most of the farming systems in the country and thereby serves as a. source of optimism for achieving accelerated growth. Both agriculture and fisheries will have to receive concurrent attention through the development of appropriate packages of technology, services and public policies, which can help to enhance production from the soil as well as the sea and thereby improve the income of farmers and fishermen. For achieving greater efficiency of farm management, attention to non-monetary inputs is as essential as to cash inputs. 9.2 The pathway of agricultural advance so far adopted in the developed nations as well as in parts of India relies heavily on increasing consumption of non-renewable forms of energy. It is obvious that finite sources cannot, be exploited in an exponential manner. Agriculture, being the most important solar energy harvesting enterprise, is an invaluable source ot renewable wealth. However, even this resource will become non-renewable if damage is done to basic life support systems like soil and water and the environment. The highest priority should hence go to the protection and improvement of basic agricultural assets. Genetic diversity in plants, animals and fish will have to be conserved and studied with regard to the use of genes present in such collections. 9.3 The agricultural strategy during the eighties will place increasing emphasis on integrated approaches to pest control, nutrient and energy supply, and also to production, conservation, consumption and trade. The triple alliance of weeds, pests and pathogens will have to be fought through an appropriate blend of genetic, agronomic, biological and chemical methods of pest control. In the area of nutrients supply, organic and biological sources of fertilisers will have to be harnessed in addition to increasing the supply of mineral fertilisers. Phosphorus management and recycling require special attention since phosphorus is a non-renewable resource. The care and maintenance of soil health as well as plant and animal health will have to be carried out with the help of the local community. Integrated energy supply systems will have to be based on the use of solar and wind energy, biogas, village wood lots in addition to electricity and petroleum products. These systems will also be so designed as to reduce energy losses. 9.4 Three major groups of factors influence stability of productionweather, pest epidemics and public policies. Pest epidemics can be kept under control tlirough proper pest surveillance and plant protection measures. Public policies in the area of agrarian reforms and pricing, marketing and distribution can also be tailored to stimulate production. Weather aberrations are, however, beyond human control. Therefore, it is essential that contingency plans are developed, particularly in areas which are prone to drought and floods for meeting different weather probabilities. The overall strategy for minimising the adverse impact of aberrant weather will be: (a) to introduce crop life-saving techniques, (b) to popularise alternative cropping patterns based on weather conditions; and (c) to introduce compensatory production programmes in irrigated areas and in off-seasons. Steps will have to be taken during the Sixth Plan

period to systematise efforts in the field of disaster management with regard to human, animal and plant populations. 9.5 The Sixth Plan will thus present many challenges and opportunities. Since food occupies the first place in the hierarchical needs of man, we can neglect agriculture only at the risk of economic instability. INDIAN AGRICULTURE IN THE EIGHTIES 9.6 Starting from the beginning of this century, three major phases can be identified in our agricultural evolution. The first phase from 1900 to 1947 was marked by a near stagnation in farming as is clear 1'roma growth rate of about 0.3 per cent per annum achieved in agricultural production during this period. Phase-11 extending from 1950 to 1980 has been marked by considerable advances in the process of modernisation of agriculture, thanks to the steps taken in the development and spread of (a) technologies based on scientific research; (b) wide range of services; and (c) public policies in land reform, pricing, procurement and distribution. As a result, agricultural production grew at an annual compound rate of 2.8 per cent during 1967-68 to 1978-79. The third phase which has begun in the eighties will be marked by the need Tor greater attention to marketing and trade, and to institutional frameworks which can help to minimise the handicaps of small and marginal farmers and maximise the benefits for intensive agriculture offered by small holdings. 9.7 The agrarian structure of our rural economy is such that small and marginal farmers cultivate nearly 73 per cent of the operational holdings in the country although they handle only about 23 per cent of the cultivated area. Their total earnings from farming alone hence tend to be small and, in unirri-gated areas, also uncertain. The long-term answer to this problem does not lie in steps like writing off loans and fixation of procurement prices at levels which will further reduce the already low levels of consumption of farm products. It is, therefore, proposed during this Plan to introduce a 3-pronged strategy to improve the economic well-being of small and marginal farmers and share croppers: (1) Improving the productivity and income from smaH holdings through detailed advice on land and water use based on the following 4 criteria:

a.

b.

c. d.

Ecology: Integrating ecological considerations in land use patterns which would help to avoid the problems of waterlogging, salinisation, erosion, etc. in irrigated areas and to elevate and stabilise production in un-irrigated areas through water harvesting and conservation. Also, contingency plans to suit different weather probabilities will be prepared and introduced according to seasonal conditions. Economics: Since most of our farmers have low input purchasing and risk taking capacity, it is essential that the land use patterns suggested both in irrigated and unirrigated areas should be based on considerations of costs, returns and risks. Also, marketing opportunities will have to be carefully studied and appropriate advice given to farmers, so that their efforts are adequately rewarded. The economic issues involved in the entire production-trade-consumption chain will have to be gone into. Energy: The land pnd water use pattern should be based upon the optimum utilisation of the available forms of renewable and non-renewable forms of energy. Employment: The aim of land use should be to optimise the opportunities for gainful employment and to make it possible for introducing labour diversification and subsidiary occupations for landless labour families. State Land Use Boards assisted by a Central Land Use Commission will pay priority attention to the reorientation of current patterns of land use on the above lines.

(2) Farmers' own organisations for storage and marketing particularly of perishable commodities will be promoted since this will help to protect small and marginal farmers from exploitation by middlemen. Aich organisations would be provided by Government with appropriate support in the areas of train-flig and trade.

(3) Diversification of opportunities for income through the introduction of subsidiary occupations under IRDP as well as lean season employment through JSREP will be undertaken so as to enhance and stabilise rural incomes. 9.8 In the eighties, public policy measures which can help to stimulate production by small and marginal farmers as well as consumption by the rural and urban poor will have to be developed carefully. Ad-hoc measures introduced without a proper action-reaction analysis as temporary palliatives, may in the long run do more harm tlian good. Since agriculture is a State subject, State Governments have a particularly important role as well as responsibility in this respect. OBJECTIVES AND STRATEGY 9.9 The aims of the agricultural programmes during the Sixth Plan period would be:

a. b. c. d. e. f.

to consolidate the gains already achieved; to accelerate the pace of implementation of land reforms and institution building for beneficiaries; to extend the benefits of new technology to more farmers, cropping systems and regions and to promote greater farm management efficiency through concurrent attention to cash and non-cash inputs; to make agricultural growth not only an instrument of maintaining an eifective national food security system but also a catalyst of income and employment generation in rural areas; to promote scientific land wateruse patterns based on considerations of ecology, economics, energy, conservation and employment generation; and to safeguard the interests of both producers and consumers by attending to the needs of production, conservation, marketing and distribution in an integrated manner.

9.10 In realising these aims we have to take cognisance of the basic socio-economic parameters governing agricultural growth during the eighties which are the increasing fragmentation^ of land holdings, imbalances in the diffusion of improved technologies in different areas and in the relative rate of growth 'of different crops. 9.11 The position with regard to the average size of a farm holding in all the States of India shows a trend tov/ards a gradual reduction in the size of an operational holding (Annexure 9.1). Land consolidation has not taken place in many of the States in the country. Watershed management in un-irrigated areas, command area development in irrigated areasmd catchment area management in hilly regions which are the triple approaches to scientific water conservation and use have been rendered difficult due to fragmentation of holdings and absence of cooperative management. 9.12 An urgent pre-requisite for accelerating agricultural advance is the need for institutional arrangements tor assisting small and marginal farmers to maximise the opportunities offered by a small farm for intensive agriculture and minimise the handicaps arising from the absence of land consolidation and levelling and the inability to invest on inputs and face risks. The major steps proposed to be taken during the plan period to help small and marginal farmers and share-croppers, both in irrigated and rainfed areas to derive advantage from improved technology, are the following:

a. b.

Extend the benefits envisaged under the Integrated Rural Development Programme to farming communities in all the blocks of the country (this has already been done with effect from 2 October, 1980); Help to organise farmers' agro-service centres which can provide relevant services in the area of tillage and farm operations, water conservation and management, plant protection, processing and marketing;

c. d. e. f.

Promote group management of soil. plant and animal health care without affecting the individuality of farm holdings; Organise effective input supply services including credit; Provide the necessary assistance in the areas of post-harvest technology, particularly with regard to marketing through the rural godowns project; and Develop further on-going crop/animal credit insurance schemes to insulate farmers from losses due to reasons beyond their control.

9.13 Imbalances in regional development have partly resulted from disparities in progress in agriculture in different narts of the country. An analysis of the co-efficient of variation in per capita State incomes between 1960-61 and 1975-76 indicates that the maximum increase in disparities in per capita income occurred due to differential progress in the agricultural sector. States which have improved the relevant position with respect to per capita income have done so largely through their imoroved position with respect to agricultural incomes. The sharp contrast in productivity improvement in crops in different regions can be seen from the sharp differences in the progress made in increasing rice yields in different regions of the country since the introduction of the Intensive Agriculture District Programme in 1961. While the progress is striking in North-West India, there has been a nenr stagnation in rice yield in Eastern India. Thus the crucial role of agricultural progress in minimising variations in per capita income and regional imbalances in economic development is obvious. It is, therefore, proposed to initiate during the Sixth Plan period the following steps to bring about more rapid development of agriculture in the areas with a large untapped potential: (a) It is proposed to strengthen further the research network in relatively less developed areas and to promote location-specific research. In addition to the 21 existing Agricultural Universities, 2 new Agricultural Universitiesone in the lammu and Kashmir State and one in the South Bihar region will be established. A national grid of co-ordinated projects will cover tribal and 'all relatively less developed regions. The ICAP. Research complex in the North Eastern Himalavan region and the agricultural colleges in Nagaland and Manipur will be greatly strengthened. (b) The "Training and Visit System" of extension will be introduced in all the less developed areas in an appropriate form so that farming families are given adequate extension support. Mobile training teams will be organised where necessary. Additional Krishi Vigyan Kendras will be established in tribal, hilly and backward areas. (c) In ecologicallv Iiandicapped regions like desert, drought prone and flood prone areas, suitable programmes for minimising the adverse impact of droughts and floods will be introduced. Steps will be taken to restore the damage done to fragile hill eco-svstems pnd to contain salinisfti.on. alkalinity pnd other processes of desertification (i.e. all man-made processes which ei'her destroy or diminish the biological potential of land). (d) As more farmers begin to have products to sell in the market, their interest in scientific agriculture can be sustained only if there are "oportunities for 'remiinera^'ve marketing Therefore, the marketing infrastructure in the neglected areas will be developed in such a manner that both producers and consumers are benefited. Special attention will be paid to the storage. processing and marketing of horticultural and other perishable materials. 9.14 With regard to imbalances in the relative growth rate in different crons, the most urgent requirement today is the acceleration of the growth where in the production of pulses and oilseeds. Poor plaint population, inadequate plant protection, cultivation in marginal and un-irrigated areas under conditions of energy deprivation and lack of producer-oriented marketing arc some of the factors which hinder the progress in imporving the production of pulses and oilseeds. It is proposed to introduce corrective measures and to popularise the cultivation of these crops in all irrigated farming systems. Plant protection will be organised on an area basis, and quality seed production will be greatly expanded. For achieving a

rapid spread of improved technology, suitable clusters of villages in appropriate blocks will be developed into "pulses and oilseed crops villages." l 9.15 Agriculture is an instrument for income and employment generation: when productivity improves, it would be possible to generate more diversified opportunities for employment. More and more workers can be involved in the post-harvest phases of agriculture and in agro-industries. It is proposed to introduce a systems approach to agricultural production, conservation, consumption and trade. Although programmes in these areas are being handled by different Departments and Ministries of Government. functional linkages will be brought about so that all the requirements of the production-consumption chain are looked into in an integrated manner. In order to enable the farmers to optimise their income from small holdings, advice on land use planning will be given by the State Land Use Boards assisted by a Central Land Use Commission wir.ch will be set up durine the Plan period. The Land Use Boards and the Central Land Use Commission will try to assist farmers in bringing about desired improvements in land and water management based on considerations of ecology, economics, energy requirement and employment generation. The revised terms of reference of the Agricultural Prices Commission already stipulate that pricing of commodities could be used as an important instrument for bringing about desired changes in land use. Since land is individually owned. Government can only promote scientific land use through appropriate packages of incentives and disincentives. 9.16 Besides growth, the Sixth Plan will also lay stress on building a National Food Security System. Since there is no immediate prospect for the emergence of an International Food Security System, it is imperative that a National Food Security System is developed in the country. The National Food Security System will have the following major component programmes: (a) Ecological Security: Any damage to the principal life support systems, such as soil and water, flora and fauna, would undermine the renewable base of agricultural wealth. Therefore, there is need for greater attention to all problems relating to soil and sea erosion, rising water table and the incidence of salinity and alkalinity and various other forms of desertification. The Central and State Land Use Boards will have to ensure that the lone-term and short-term goals of agricultural production efforts are in harmony with each other. (b) Technological Security: Growth with stability should be the maw aim of technology development. In areas like the Punjab, which have already reached high levels of production, there is need for ensuring the stability of production through improved soil and plant health care and post-harvest technology. In areas with untapped production potential, knowledge of the constraints responsible for the difference between potential and actual farm yields will have to be gathered through an inter-disciplinary constraints analysis. Above all, technologies for minimising the adverse impact oT aberrant weather on agricultural production and for fighting the triple alliance of weeds, pests and pathogens will have to be developed for all major farming systems and farming regions, (c) Building grain reserves: A minimum grain re serve of 15 million tonnes has to be maintained. In addition, all losses in storage both in rural and urban homes and in the fields and threshing yards should be minimised through an intensification of the "Save Grain Campaign". A national grid of rural storages will be established both for perishable and non-perishable commodities. (d) Social Security: The availability of purchasing power in the hands of poor is as important as availability of food in the market. The employment generation programmes and particularly the National Rural Employment Programme should help all families to acquire the wherewithal to purchase food. (e) Nutrition education: Several nutritional problems like vitamin 'A' deficiency leading to blindness, iron anaemia, etc. can be easily eliminated through suitable educational, horticultural and intervention programmes. The National Food Security System will be complete only when, all avoidable nutritional, disorders are eliminated.

(f) Stability of prices: Prices of agricultural commodities exercise a dominant influence on the behaviour of the overall or general price level. Agriculture accounts for nearly half of the national income. Several of the essential articles of mass consumption such as foodgrains, edible oils, sugar, gur and khand-sari, cloth, tea and coffee, fruits and vegetables which account for a substantial weight in the cost of living index, are agriculture based. Agriculture and agricultural based products also account for more than half of the total weight in the wholesale price index. Apart from the fact that there exist imbalances in the demand and suprly of agricultural commodities which are specially pronounced in case of pulses and oilseeds, the output of agricuitural commodities is subject to year to year fluctuations. As the demand for these essential commodities is relatively inelastic, marginal rise or fall in their output leads to disproportionate variation in their prices specially in years of bad crop. Past experience suggests that relative stability in general price level has more often coincided w^th years of good harvest and, on the other, the inflationary pressures have more often bsen triggered by fall in agricultural output and consequent rise in agricultural prices. Agricultural production strategies in tlie Sixth Plan should hence be based on the need 'for increasing the production of commodities in short supply and thereby helping to maintain price stability. 9.17 The foundations of agricultural growth lie ultimately in advances in the technology used at the farm level. The basis for these technological advances 'lies in the system of agricultural research which has contributed very substantially to agricultural development during the planning era. Many of the fruits of agricultural research have been successfully transmitted to the field level but there are certain gaps which need to be filled. In the Sixth Plan period, apart from the general support for the system of agricultural research, special emphasis will be placed on dryland farming, scientific land and water management, recycling of organic matter and energy management. The approach in this plan with regard to agricultural research and technology is dealt with below. RESEARCH AND EDUCATION Research infrastructure 9.18 The Indian Council of Agricultural Research is an apex body at the national level with principal mandate to promote, aid and coordinate research in the areas of agricultural animal sciences, fisheries and agricultural engineering. The Council has also the unique feature of promoting higher agricultural education including extension education. 9.19 The triple function of research, education and extension education is implemented through 34 Central Research institutes, the National Academy of Agricultural Research Management, five Project Directorates and 54 All India Coordinated Research Projects under the Council and 21 Agricultural Universities located in the State Sector. A national grid of cooperative research has thus been established in which the role of Central Institutes and the State Agricultural Universities, as equal partners, has been well-defined. The system aims to achieve maximum complementarity of resource use. With a view to strengthening mission-oriented research. National Research Centres with eminent scientists are to be established dur\ng the Sixth Plan period on the one hand and, on the other, a National Agricultural Research Project has been started to enhance capabilities of Agricultural Universitties to do locationspecific research in each of the agro-climatic zones. Agricultural Universities 9.20 Starting with the establishment of Pant-nagar University in 1960, a number of Agricultural Universities have been set up to bring about an integrated approach to education, research and extension, and for this purpose the responsibility of research has been transferred to the Agricultural Universities. However, in this process, the links between research and extension have tended to become weak in some cases. Therefore, during the Sixth Plan period, linkages between development departments and Agricultural Universities will be strengthened and Agricultural Universities will play a leading role in organising farmers' fairs, extension training and other "lab to land" programmes. The proposed new Agricultural University in Jammu and Kashmir should deal with problems of temperate

fruits, sheep and goat husbandry, sericulture, silviculture and relevant aspects of high altitude farming. The Agricultural University in South Bihar should specialise in tribal professions such as sericulture, lacculture, horticulture, forest farming and allied activities. Such concentrated attention in relevant areas will enhance the impact of Agricultural' Universities on the rural economy. 9.21 The Agricultural Universities have to act as catalysts and play a crucial role in plan implementation by providing appropriate R & D support for increasing and stabilising production' and achieving the desired growth in agriculture. Universities' research would be oriented to develop the needed technology for agriculture, animal husbandry and fisheries programmes. The education and training programmes would also be reorganized to train the required number and high quality of students in different disciplines. Efforts would be made for energy harvesting from renewable sources by all possible means as agriculture today is an energy intensive process. Technology will have to be evolved for efficient use of soil and water so that investments made on irrigation and fert'liser projects benefit more farmers. In the area of post-harvest technology and marketing the Universities would take appropriate initiatives. The universities also should establish perspective planning cells and give lead in planning for better tomorrow. Agro-meteorological research will be strengthened so that both early warning and timely action can be 0 promoted when seasonal conditions becom . unfavourable. The strategy and priorities should be oriented to fulfill the mandate specified in the Sixth Plan. Human Resource Development and Utilisation of R & D Manpower 9.22 With the increased need for field-oriented and problem-solving research it has become increasingly difficult to implement many of the research projects/programmes due to lack of competent technical manpower and specialists. The ICAR is therefore promoting advanced Centres of Situdies in selected areas relevant to our agricultural development in order to train competent scientists. The Agricultural Universities and ICAR institutes have a special responsibility 1o shoulder in this regard. The problem is particularly acute in tribal and backward areas. A Comprehensive Project of additional compensatory benefits has, therefore, been sanctioned for scientists of the Council to attract them to such neglected areas. A Programme of Human Resource Development has also been started to provide financial assistance to deserving students from tribal and backward districts for higher studies upto post-graduate level, so that they may go back to their areas and help develop them. The educational programmes in the agricultural universities are being strengthened to improve their quality and to make them increasingly relevant to the developmental needs of the country. Higher educational programmes to train the required manpower for research in different branches will receive special attention during the Sixth Plan period. The Krishi Vigyan Kendra programme (KVKs) start ed towards the end of the Fourth Five Year Plan has developed into an important means of filling the gap in the technical training programmes for transfer of technology in different branches of agriculture. The KVKs will be fun-her strengthened during the Sixth Plan period. The need for imparting better managerial skill to research scientists was recognised when the National Academy for Agricultural Research Management (NAARM) was set up at Hyderabad during the Fifth Plan period. This Academy will be fully developed during the Sixth Plan period to train the new entrants and in service personnel at various levels in ICAR institutes, Agricultural Universities and in States and Central Government development departments. Improved management of both Agricultural Universities and ICAR institutions is essential for enhancing the per capita output of scientists/tsachers. In this task NAARM has a key role. Research Priorities and New Thrust 9.23 During the last three decades, the major objective of agricultural research and development was to achieve self-sufficiency in food. During the eighties, the goal would not only be to further improve productivity and stabilise and diversify production, but also to generate rural employment and enhance consumption by increasing the purchasing power of the people. High yield-cum-high stability production system will have to be developed, ensuring maximum utilisation of available resources of soil, water and sunlight. Land-use planning, water-shed management and farming system orientation to R & D efforts to maximise returns and minimise risks would be some of the approaches for effic'ent utilisation of resources. Special attention will be paid to strengthen research in oilseeds and pulses to improve their

production potential and to develop location-specific technology so as to help increase production of these crops by about 50 to 100 per cent in die 1980s. Maximisation of biomass production, nartitioning it along economically remunerative path-ways, recycling of organ'c wastes and efficient transformation of all forms of cultural energy fi.e. all forms of energy introduced by man) into food energy would be some of the complementary objectives. Emphasis will also be laid on strengthening research on vegetables and horticultural crops. 9.24 Research in energy management in agriculture would be a new area to receive concerted attent'on. Efforts to harvest as much solar energy as possible through agro-physical devices and biological systems will be intensified. Input utilisation efficiency would form an important component of energy management system. This would include water-use efficiency. fertiliser-use efficiency, etc. A massive effort will be directed towards harnessing organic and biological resources of nitrogen and developing technologies for recycling of phosphorous, a non-renewa^e source. Integrated pest management would be another direction of future research to reduce both cost and hazards of chemicalisation of our agriculture. Studies on dynamic's of labour availability and costs would be undertaken to determine the desirability, extent and kind of mechanisation of qgriciilture. Identification of constraints responsible for the oao between the potential and actual farm yields and causes of slow technology diffusion in some areas, would continue to be the prime concern. This would require more basic biological, agro-physical and socio-economic research. 9.25 Fishery research will have high priority to develop relevant technology for production, processing and marketing of both inland and marine fisheries. Animal production will receive special attention in dry farming and hilly areas. Silvi-pastoral system and agro-forestry programmes would be given attention since they are a source of feed and fodder foi live-stock. Incentive prices will have to be ensured by developing marketing and trade on producer-oriented lines. Special programmes will be initiated to give export-orientation to agricultural production after fully meeting internal requirements. Technologies for intensive agriculture on small holdings will have to be developed and the mis-match between production and post-harvest technology will have to be eliminated. Thus the research programmes of the ICAR and Agricultural Universities would aim at consolidation, coordination and selectivity. Improvement in productivity in pulses, oilseeds and sugar-cane, development of technology against pests and diseases, risk-distribution agronomy, post-harvest technology, nutrition research, agro-forestry and development of commercial and plantation crops for export purposes will be given priority. Emphasis in dry land farming would continue on evolving water conservation methods and contingency land and water use plans to stabilise production. Agro-meteorology studies will be augmented to develop more dependable cropweather forecast. Remedying regional imbalances by paying more attention to agriculturally backward and less developed areas by involving mixed farming systems would be resorted to. Areas of inier-agency Collaboration 9.26 Appreciating the need for inter-orgamsational collaboration, ICAR has established a number of interagency scientific panels to develop research programmes of mutual interest. These programmes involve, bes'des ICAR. agencies like the Council of Scientific and Industrial Research, Department of Science and Technology, Indian Council of Medical Research. Indian Meteorology Department. Indian Council of Social Sciences Research, Central Water Commission and the National Dairy Development Board. The projects cover a wide range of areas such as energy management, oost-harvest technology, med'cinal and aromatic plants, utilisation of farm by-products and agricultural wastes, problems of food storage/preservation and food toxins including pesticide residues, weather forecast and warning system, etc. Some of the prospective areas of collaboration are reproductive biology, biolog'cal and physiological plant processes, immunology, agro-meteorology, integrated rural development, etc. 9.27 In the area of international collaboration, the Council will take necessary steps, on the* one hand. to benefit bv acquiring latest technologies from the developed nations and. on the other, by sharing some of the technologies developed in this country with other developing countries. There is immense scope for technical cooperation among developing countries in agriculture since these countries have been in most cases the centres of origin of crop plants Bi-lateral and multi-lateral programmes will be continued so as

to fill the gaps noticed in the past and to improve the managerial skills. DRYLAND FARMING 9.28 Nearly 25 per cent of the total cropped area in the country is irrigated by various sources, and the balance continues 10 depend on rains. The rain 1'all patterns are erratic and the period of rainfall and the number of rainy days in different areas vary considerably. Even though the rainfed areas account for 75 per cent of the cropped area, their contribution amounts to only about 42 per cent ot the total food-grains production. Almost tlie entire quantity of coarse grains and pulses as also most of cotton and ioilseeds are produced in the rainfed areas. Wide fluctuations in production, thus, occur in these areas year after year and these fluctuations adversely affect the total production and agricultural economy of the country. 9.29 A Centrally Sponsored Scheme of Integrated Dry Land Agricultural Development was launched in 1970-71 in 24 pilot projects to test and demonstrate on a large scale the technology developed by the All India Coordinated Research Project for Dryland Agriculture under tlie ICAR. The technology offered to the farmers under these projects has proved that a significant increase in production of the dry land/ rainfed crops can be achieved. A large number of field demonstrations conducted have also shown that ti-ie yields can be stepped up considerably on the farmers' fields. The Centrally Sponsored Scheme has since been transferred to the Stales Sector. 9.30 The Sixth Plan lays great emphasis on increasing agricultural production on dry land/rain fed arable lands. The efforts will be directed towards rain-fed/ dry land farming on watershed basis. The programme will be flexible in approach to meeting the iocal needs. Areas with annual rainfall of 750 to 1125 mm wi!l be covered under these efforts with some exceptions to meet specific local situations. In selecting such areas, avail ability of technical know-how based on research and development and recommendations 'for crop planning either from ICAR's dryland research centres or from Agricultural Universities will be relied upon. Also, areas having representation from tribal and scheduled classes of the society v/ill be preferred in undertaking this programme. 9.31 A programme of propagation of water harvesting technology in medium rainfall areas will be introduced in order to conserve available moisture and utilise it for supplementry irrigation. Tlie run-off of water collected into farm ponds, bundhies, etc. can be used in the following situations:

a. b. c. d.

saving of standing kharif crops from drought effect; providing pre-sowing irrigation for rabi crops; extending the growing season for the benefit of long duration crops, i.e., red gram, castor, etc. and providing a minimal irrigation for growing vegetables, fruits or fodder in small are

SOIL AND WATER CONSERVATION 9.32 Soil and Water conservation programmes were initiated during the First Plan period and they have been progressively intensified over the successive Plan periods. Till 1979-80, an area of 23.40 million hectares was treated by various soil conservation measures against IS million hectares at the end of Fourth Plan period (1973-74) and 21.7 million hectares at tlie end of Fu'th Plan period (1977-78). During the First and Second Plan periods, soil conservation works maimy constituted of contour bunding and some ailorestation of denuded areas. Under the Third Plan, a centrally sponsored scheme of soil conservation in Catchments of 13 major River Valley Projects was undertaken. This was extended to another 8 Catchments during the Fourth Plan period, and today this scheme is covering 21 Catchments. From the Fifth Plan onwards, soil and water conservation programmes are being taken up on water-shed approach. Other significant achievements of the previous Plans include the setting up of the All India Soil and Land Use Survey Organisation and State Land Use Boards to take an overall view of the land use,

conservation problems, etc. Thus, the organisational capabilities for undertaking this programme have been strengthened and also augmented m most o'f the States. 9.33 According to available estimates, substantial areas of land in the country are affected by soil erosion or land degradation. The area so far covered by soil conservation measures is only 23.40 million hectares. Therefore, there is a vast area yet to be covered. Small water-sheds with an area of 1000 2000 hectares, treatment of which is practicable and manageable, will have to be increasingly taken up during the Sixth Plan period. There is also need to evaluate the resuits for assessing the effectiveness of various soil conservation measures and, with this in view, continuous monitoring of the programme at various stages of implementation will be very essential. 9.34 Considering the magnitude of the problem of land degradation, its regional and inter-State ramifications and high national priority accorded to tackle it, the Sitxh Pian aims at a target of an additional 7.1 million hectares on the base of 23.4 million hectares. Adequate outlays have been mads in the State Plans for implementing this programme. The Centrally sponsored schemes of soil Conservation in the Catchments of River Valley Projects which at present cover 21 catchments will be continued in the Sixth Plan. A target of 3 lakh hectares is to be covered by this scheme. Another centrally sponsored scheme of integrated water-shed management in the Catchments of 8 Flood prone Rivers of the IndoGangetic Basin v/ill also be taken up under the Sixth Plan. This would involve adoption of an integrated approach by combining water shed management up-stream with engineering and structural methods of diverting and controlling the flow of flood water downstream. The work of survey and investigation of the catchment areas will be concurrently taken up for preparation of detailed water-shed management plans so as to form a sound base for integrated action programme. This programme will have a target of 5.5 lakh hectares tor the period 198085. 9.35 Benefits of soil conservation programme accrue in the shape of development ol land as also creation of employment opportunities. These benefits flow to scheduled castes/tribes particularly where these programmes are implemented in areas pre-dominantly inhabited by them. Particular mention may be made of the scheme for control of shifting cultivation which is exclusively for the benefit of tribal people. In the case of other schemes, nearly 1020 per cent of the total investment is for the benefit of Scheduled Castes/ Tribes. ORGANIC RECYCLING 9.36 In India we have large quantities of biomass produced by our plant and animal systems, whose proper economic utility is not fully recognised. The biomass production under the tropical conditions is far more than Under temperate conditions. It is estimated that about 1000 million tonnes of organic wastes in the form of crop residues and another 300 to 400 million tonnes of cattle dung and animal dropping are available annually in the country. These materials contain approximately 6 million tonnes of nitrogen, 2.5 million tonnes of phosphate and 4.5 million tonnes of potassium. Even if a significant portion of these plant nutrients are efficientiy recycled, not only our agricultural economy would improve but also crop land would become much better. It is estimated that the total rural compost, which could be prepared from these rural wastes, would be about 50 million tonnes; similarly urban wastes could also contribute about 15 million tonnes of compost. Besides, if the organic materials are utilised tor biogas production, before the residue is used as manure, nearly 50 per cent of the rural domestic fuel requirements would be met. The utilisation of these natural manures in addition to chemical fertilisers is an important element in our agricultural strategy. Organic recycling not only helps in the beneficial utilisation of organic wastes but also helps to improve the environment ol human habitat. 9.37 It is essential that organic recycling should be linked with improving the ecosystems. Organic recycling would depend upon the nature of the material, such as crop residues, tree wastes, weeds, urban and rural wastes, animal wastes including the dung, litter, droppings and carcasses, marine landings and sea weeds and their location and method adopted for their utilisation. While the organic residues of plants reach the soil and water sooner or later, the manner it is incorporated into cultivated

soil and the values of plant nutrients contained therein would help in improving the dynamic equilibrium in soil-plant-animal relationship. 9.38 During the Sixth Plan period steps will be taken to use on a large scale the technology of composting based on locally available materials, including me designing of simple and low cost composter for rural areas as well as economical big composter for urban areas. In addition, intensive research work will be conducted to improve the quality of the compost by enriching it witn plant nutrients. Steps will oe taken to use sewage ana sludge on a large scale for soil productivity as well as for energy (biogas). Detailed investigations will be carried oui to find out the reliable data pn the availability of organic wastes and to conduct a comparative study of the various procedures used in the utilisation of these wastes for the production of fuel and fertilisers. Research will also be undertaken for designing of machines for processing of bio-mass available locally for chopping, pellet making pyrolysis, gasification, etc. and for the production 01 oil, methane or methenol, etc. from the materials available locally. In view of the energy crisis and likely increase in the cost of inorganic fertilisers as well as their possible shortage, organic recycling will be given high priority during the plan period. BIOGAS DEVELOPMENT 9.39 The energy needs of the country have been growing rapidly, both due to increasing population and also modernisation of our various Human activities. The shortage of fossil fuel being felt all over the world has awakened us to look for renewable sources of energy. A recent survey of the energy needs and uses of the nation has brought out that in rural areas upto 80 per cent of the needs is met from fuelwood, cowdung and other organic materials, whereas in the urban areas the percentage is around fifty. This means that we are cutting down the valuable trees and plants to obtain the fuelwood and also burning the cowdung which would otherwise become high value organic manure to crop fields. Considering that there will be greater demand for fuel during the coming years, unless we take corrective steps, the present methods of cutting down the forest and burning the cowdung will increase to our dismay. While conservation of forests together with planting energy and fuel forests have to be intensified, more of economic use o cowdung to meet the fuel needs and the organic manurial requirements will have to be aclopred. In this respect a massive programme for use of biogas in rural areas becomes important and urgent. 9.40 Biogas technology is based on the phenomenon of anaerobic decomposition of organic material, resulting in methane production which serves as a source of fuel for cooking, lighting, propelling engines, etc., and the residual organic matter as rich manure containing plant nutrients in a concentrated form. In India about 300 to 400 million tonnes of animal excreta is available as base for biogas production, besides bulk quantities of plant residues and other organic wastes which could also be mixed with the animal excreta for biogas production. It is estimated that if all these materials are utilised, about 70,000 million cubic meters of methane gas equivalent to about 160 million tonnes of fuelwood could be produced. 9.41 During ihe past few years some steps have been taken to popularise setting up of biogas plants in farm homes. So far about 75,000 family size plants and three or four larger community biogas plants have been set up in the country. The experience gained in this field so far is encouraging, rich and useful. It is desirable to conduct extensive R&D on biogas. Studies sliould be conducted on the improvement of the efficiency of biogas plants by pursuing research on microbiology and biochemistry of fermentation so that greater quantity of biogas and better quality of manure may be obtained irom them. Extensive research is needed to explore the possioilily of large scale and economic use of organic wastes as a source of biogas and manure, especially to develop suitable strains of methane producing anaerobic bacteria from these materials, in addition, investigations would be pertomi.d for the enhancement of the efficiency of biogas plants in cold climatic conditions and for designing ot biogas plants with low cost technology from the materials available locally. For popularising biogas plants, further steps will be taken to establish suitable organisational infrastructure, to make adequate arrangements for post-installation services and to perform extensive extension work. Considering the various advantages obtained through biogas plants, including less expensive renewable source of energy for cookmg and ligating, etc., improved organic manure,

better sanitation and better conservation of natural resources including a reduction in felling of trees, a massive biogas development programme to set up about one million family size plants and 100 community plants during the Sixth Five Year Plan period is contemplated. INPUTS AND SERVICES 9.42 Agricultural production requires a variety of inputs and services for sustaining and expanding production-fertilisers and manures, unproved seeds, plant protection chemicals and modern implements and machinery. The targets with regard to these inputs and for the extension of irrigation (which is dealt with in Chapter 10) are indicated in Table 9.1. Apart from these material inputs, a variety of other services like credit, insurance, storage, marketing and processing are also required. The measures that are proposed to be taken to increase availability of these inputs and services and to improve the delivery system are dealt with below. Table 9.1 Targets of inputs Sl. Item No. (0) (1) I. Seeds 1 Certified 2 Foundation 3 Breeder II. Fertilizer Consumption 1 Nitrogenous (N) 2 Phosphatic (P) 3 Potassic(K) Total N+P+K III. Pesticides (Teeh. grade material) IV. HTV Programme 1 Paddy 2 Wheat 3 Maize 4 Jowar 5 Bajra Total HYV V. Gross Cropped Area VI. Irrigation 1 Minor Irrigation (a) Surface water (b) Ground water Total 2 Major & Medium Do. Do. Do. 8-00 22-00 30-00 22-60 9-0 29-00 38-00 28-20 Million Hectares Thousand tonnes Million Hectares Do. Do. Do. Do. Do. 13-60 13-50 2-00 3-00 3-10 35-20 171-00 25-00 19-00 2-00 5-00 5-00 56-00 181-00 Lakh tonnes Do Do 35-00 11-50 6-10 52-60 60.00 60-00 23-40 13-10 96-50 80-00 Lakh Quintals Do. Do. 13-71 0-92 0-06 54-00 3-00 0-12 Unit Assumed base level 1979-80 (Actual/ Anticipated) (3) Plan target 1984-85 (4)

(2)

Total Irrigation (1+2) VII. Command Area Development Construction of field channels 2 Land level ling and shaping. Million Hectares Do.

52-60 3-10 1-00

66-20 7-10 2-00

Note :- State-wise break-up of Plan targets of HYV and fertilizers input are given in Annexure 9.5 FERTILISERS AND MANURES 9.43 Fertilizers and manures are a crucial input in agricultural production. Consumption 01 fertilizers in tne country has been increasing steadily, thanks to better availability through increased domestic production and streamlined distribution coupled with measures taken by Government for increasing its demand. At the beginning ot the First Plan, fertiliser consumption was only about 69,000 tonnes of nutrients and in iy/y-8U u was nearly 5.3 million tonnes. In 1974-/o, there was a set-bacic in consumption of fertilizers Hue to the rise in prices. After recovering from this set-back, the consumption of fertilizers has continued to rise and the average annual increase during the three years ending 1979 was 20 per cent. 9.44 This increase has been facilitated by reduction in their prices, ihis appreciable increase has, however, led to increase in the burden of subsidy on the one hand and higher import bill on the other. The trend continues to be towards a more balanced use of different nutrients. There are, however, wide differences in per hectare consumption in different States, ranging trom 2.U4 kg. in Assam to 108.5 kg. in Punjab with the average for the country being about 31.5 kg. (nutrient) in 1979-80. Further, fertilizer consumption continues to be concentrated in about 60 districts (out of a total of 405), which account for about 50 per cent of the overall fertilizer consumption. 9.45 Weather conditions being favourable, consumption of fertilizers is likely to go up further during the Plan period. One important point to be borne in mind is in relation to efficiency of fertilizer use. It has been observed that a large percentage of nitrogen applied to low land paddy fields gets lost through denitrirication, volatilisation and leaching. Losses also occur in respect 01: upland crops like wheat. There is, thus, need for improving the efficiency of fertilizer use. 9.46 The objectives of the Sixth Plan are (a) to have equitable and efficient fertilizer distribution system in the country accompanied with a proper infra-structural and organisational support; (b) to reduce regional disparities in fertilizer consumption; (c) to ensure that benefits of fertilizer use are received by all sectors of the farming community, especially the small and marginal farmers; and (d) to promote integrated nutrient supply system by better and increased mobilisation of organic and bio-fertilizer resources in order to supplement and optimise use of chemical fertilizers as also to maximise efficiency of fertilizer use. 9.47 In order to cope up with the distribution of about 22 million tonnes of fertilizer material by the end of the Sixth Plan, the distribution system will have to be considerably augmented and streamlined. Port handling capacity will have to be increased considerably through high speed mechanical unloading plants, port storage, portable bagging machines, etc. The irreversible trend towards rail movement in block rakes to single point destinations calls for suitable iiifrasiructural urrangcmeuls like sidings, platforms, siorage space, etc. ai identified nodal cenues irom where furtner distribution by road can take place. Movement 01 lenmzers in bulk trom ports and plants for subsequent bagging near the consumption centres will receive funner emphasis, improvement of the distribution system will involve opening of additional storage depois in the states, increasing retail sale points in the interior, introducing multi-agency competitive distribution system and making arrangements for adequate supply of credit to farmers 101 purchasing fertilizers. A good monitoring system would also be necessary to ensure timely ana adequate availability of fertilizers in all parts ot the country.

9.48 One 01 the reasons for the skewed pattern 01 fertilizer consumption in the country has been the fact mat reiaii outlets have tended to cluster around ran-heads since fertilizers were hitherto supplied to distributors on FOR rail head destination basis. In order to tide over the problem the Central Government has recently introduced a scheme to meet tne cost of transportation of fertilizers from all the rail heads upto all block headquarters in the country. The scheme, when implemented, will make fertilizers adequately available in all blocks in the country (even in the blocks which do not have rail head facilities). 9.49 Extension support for guiding the farmers in the proper use of fertilisers so as to achieve maximum benefits will be further strengthened. Soil testing facilities will be strengthened and expanded. Besides, greater attention will be given to popularisation of fertilizers m non-conventional unirrigated areas persently under the dry farming system where fertilizer use is almost negligible. 9.50 The consumption of fertilizers is expected to go up from 5.3 million tonnes in terms of nutrients in 1979-80 to 9.6 million tonnes by the end of Sixth Plan. This would call for suitable investment in the fertilizer sector. Simultaneously, steps will have to be taken to promote the conservation and use of all organic wastes and biological sources of nitrogen fixation and supply. Bio-fertilizers programme involving the popularisation of rhizobium, blue green algae, azolla and other sources will have to be greatly expanded. Also, steps to improve soil fertility and to reduce leaching losses of nitrogen will have to be taken. IMPROVED SEEDS 9.51 The area under high yielding varieties of seeds has been showing a progressive increase trom year to year. The Sixth Plan aims at covering an additional area of 20.8 million hectares over the 1979-80 base of 35.2 million hectares. The total area of 56 million hectares will include 25 million hectares of paddy, 19 million hectares of wheat, 2 million hectares of maize and 5 million hectares each of jowar and bajra. 9.52 The National Seeds Projects (Phase I and II) launched during the Fifth Plan period and still under execution is a major effort in meeting the requirements of improved seeds. The project covers the States of Haryana, Punjab, Andhra Pradesh, Maharashtra Bihar, Karnataka, Orissa, Rajasthan and Ultar Pradesh. State Seeds Corporations have been set up in these States. Augmenting infrastructural facilities like set^ng up of processing plants, seed certification agencies, seed testing laboratories, etc. are some of the important programmes of the project. Creation of Seed Technology Units in 12 agricultural universities and a few ICAR institutions for breeder and foundation seeds is also part of the project. The project, in brief, aims at placing the seed industry on a scientific footing by reorganising the functions of various institutions in a systematic manner. 9.53 It has been felt that it would be very difficult to produce large quantities of breeder seed in case 'only 3 stages of multiplication up to the stage of certified sc;d are adhered to as has been the practice so far. Hence, two stages of foundation seedStage I and Stage II are being introduced. Taking into account the requirements of reserve stock of seeds for foundation and certified seeds, the total requirements in the terminal year of the Sixth Plan would be about 54.0 lakh quintals of certified seed, 3.0 lakh quintals of foundation seed and 12,000 quintals of breeder seed. These figures include a massive increase in the production of seeds of pulses and oilseeds keeping in view the national priority for increasing production of these en ups and the vital role that quality seed would play in promoting good plant population and performance. 9.54 It has been observed in the past that the production of certified seeds has been limited on account of non-availability of adequate volume of breeder and foundation seeds. Plan provisions have been made to strengthen the National Seeds Corporation to enable it to assume direct responsibility for production of breeder and foundation seed so that the shortage exhibited at the national level in the past can be eliminated. The National Seeds Corporation is also proposed to be strengthened for production of vegetable seeds.

9.55 The State Farms Corporation of India will also play a bigger role in the production of certified seeds of important cereals and other crops especially oilseeds, vegetables, etc. on their large and scientifi-cally managed farms. PLANT PROTECTION 9.56 Recurrent attacks of pests and diseases have been causing considerable damage to the crops. Unless these are kept under check, efforts to boost up agricultural Iproduction will not succeed. Recent studies have revealed that in the year 1976-77, 19.8 per cent of the cropped area suffered from pests and diseases but the area treated with pesticides was only 7.2 per cent. The crops that suffered most were groundnut (47 per cent), cotton (28 per cent), paddy (24 per cent) and sugarcane (25 per cent).' Even eposervativc estimate pf loss of, 1015 per cent in the total agricultural output should amount to thousands pf crores of rupees in a single year. 9.57 Consumption of pesticides in the country was negligible in the early fifties. Starting from a low figure of 100 tonnes of pesticides consumed in agricultural sector at the beginning of the First Five Year Plan, the country is now consuming 60,000 tonnes of technical grade pesticides in the agriculture sector alone (1980-81). However, the consumption varies considerably from State to State. Whereas Tamil Nadu consumes more than 1.8 kg. of formulated pesticides on each hectare of cropped area, Madhya Pradesh hardly consumes 1/lOth of a kg. of formulated pesticides on an equal area. The high rainfall areas in the eastern part of the country, which are more prone to the attacks of weeds, pests and diseases do not consume any sizeable proportion of the pesticides. 9.58 The objectives during the Sixth Plan period will be to

a. b. c. d. e. f. g.

minimise the losses arising out of pests and diseases; expand the area under plant protection from 80 million hectares to 100 million hectares; increase the consumption of pesticides from 60,000 tonnes to 80,000 tonnes of technical grade material; strengthen surveillance against pests and diseases and determine economic thresh-holds with a view to having more efficient use of pesticides. Surveillance in the tribal areas will be given special attention; strengthen quality control arrangements and set up Central Insecticides Laboratory and Regional Laboratories; expand the work on "Integrated Pests Control" and intensify the control of Pests by biological means; and continue the Scheme of "Control and Eradication of Pests and Diseases of Agricultural Importance including Weed Control in Endemic Areas".

PLANT PROTECTION IMPLEMENTS AND MACHINERY 9.59 A number of programmes were initiated during the previous plan periods, but their size and coverage have not been commensurate with the increasing needs of agricultural development. At the same time nroorammes of research and development taken up by the agricultural universities have enabled identification of implements suitable for the different areas. What is however lacking, is the programme or demonstrations to motivate the farmers in the use of improved implements and infrastructure at the state level to coordinate demand with production, quality control, distribution and supporting services of farmers' education, credit, repair and maintenance facilities. State Agro-Industries Corporation have been set up in different States to strengthen these activities. Another programme is 1 establishment ol agro-service centres to be handled by self employe. engineers. This was taken up to

achieve the objectives of employment generation and provision of supplies and services to farmers in the rural areas. Under this programme, about 3,160 centres were set up. The State Agro-Industries Corporations have taken up a wide range of activities with a bearing on production of inputs for agriculture and in the processing of agricultural products. The funds available to them have, however, been utilized tor activities connected with the supply of inputs and services. On the financial side, their performance leaves great scope for improvement. 9.60 In the Central Sector, attention has been given to training of personnel in the operation, maintenance and management aspects of agricultural machinery and in the testing of different types of machinery for functional performance and durability at the two central institutions at Budni and Hissar. Tliese institutions are to be strengthened so as to meet regional needs of training and testing. Development of hill areas through a programme of training in the selection and use of tools and equipments, appropriate for these areas, would also receive high priority. 9.61 Keeping in view the constraints and requirements of the programme of agricultural machinery, the strategy for the Sixth Plan aims at (i) introduction and popularisation of selected implements particularly those which benefit the small and marginal fermers with emphasis on the needs of ecologically handicapped areas and areas where higher potential for improvement of agricultural production exists: (ii) strengthening of the supporting services and infrastructure for demonstration and popularisation; (iii) testing; and quality control; (i.v) training and (v) promotion of agro-industries and agro-services. 9.62 Farmers' Agro Service Centres will be set up for training and assistance to entrepreneurs, groups of farmers, personnel of cooperatives, etc. through adopting a multi-agency approach. It is proposed to set up 500 such centres in different parts of the country during the Sixth Plan period. Their main objective will be to organise supplies and services tor the benefit of small and marginal farmers. This programme will be supported by national and regional centres for technology transfer. AGRICULTURAL EXTENSION AND TRAINING 9.63 It is well known that there is a wide pap between production potential and actual field harvests in most agricultural crops. There is adequate technology available for transfer from the research laboratories and experimental stations to the farmers' fields and homes. Besides, agricultural technolosv is also developing fast. In order to keep pace with such a development and to improve the economy of the farmers, the machinery involved in the transfer process needs to be strengthened and atuned to meet the growing and changing needs. In the past the agricultural administration had not received adequate attention in most States, with the result the policy goals were not often supported with an implementation machinery. Recent experiment in reorganisation and strengthening of the agricultural extension service under the 'Training and Visit' system in Rajasthan and Madhya Pradesh has given very encouraging results. This T & V system is already working satisfactorily in 10 States. During the Sixth Plan period this system would be introduced on a nation-wide basis, so as to improve the education and technical competence of the extension functionaries and also to bring better linkages between Agricultural Universities, Extension Wings of the State Governments and farming communities. 9.64 The need for training of women in agriculture cannot be over-emphasised since more than fifty per cent of the agricultural operations are carried out by them. In order to improve their technical competence and economic conditions in agriculture, more intensive training programmes for women in agriculture will have to be organised. There are four categories of labour involvement by women and they are (i) field labour like sowing, transplanting, harvesting, th'-eshing, etc., (ii) skilled operations like plant protection, plant propagation, hybridization as in cotton, (iii) post-harvest operations such as cotton .grading, processing and vending of various agricultural commodities; and (iv) farm management and supervision of farm operations. In all these areas farm women need to be given technical training to improve their efficiency. 9.65 The labour force in many areas belong to the lowest strata of the society. Almost the entire lots of scheduled castes and tribes depend on their meagre earnings from working on farm lands. The tribal

people also depend mostly on farm lands and more so on horticultural crops. Their skills in agriculture are mostly inherited through generations. There is ample scope to improve their skills through specially organised training programmes to suit their background and culture, so as to reduce drudgery in agricultural operations and improve their economic status. Some sectors of society such as ex-service personnel who enter into agriculture need special attention in our training programmes. They have to be riven tailor-made courses to meet their requirements. Likewise. progressive farmers and farm youths should be trained to take to new crops under export promotion, multiple and mixed cropping, etc. 9.66 In some respects the agricultural sector can provide opportunities for painful enjoyment of the phvsicallv handicapped. This is because of a wide variety of operations involved in agriculture and postharvest processing. This would need specialised trainin" for the handicapped persons taking into consideration the needs of the situation. 9.67 Durine the Sixth Plan period not only will the extension machinery be strengthened in its structure and quality to carry out better programmes of transfer of technology but also selected sectors of farmers and farm labour force will be given different types of training to improve their skills and also to diversify such skills to enable them to be more fully employed and to earn better living. AGRICULTURAL CREDIT 9.68 The cooperative structure with its countrywide network of primary cooperatives, the commercial banking sector with 14444 rural and special agricultural branches (at the end of December 1079) and the Regional Rural Banks numbering 65 with 2420 branches are the three main agencies involved in provision of credit for agriculture and allied sectors. Of the three, it is the cooperatives which still continue to have the predominant role in terms of both volume and territorial coverage. 9.69 Though the growth of credit through different credit institutions has been fairly rapid in the past few ye,ars, they have still a long way to go to meet the growing credit needs of a modernising and expanding agriculture and allied activities. The share of agriculture in Gross Commercial Banks Credit at June end 1979 was only 11.8 per cent. The share of rural 'branches in the total deposits at December end 1978 was 10.4 per cent but in credit advanced only 8.4 per cent. The share of semi-urban branches in deposits and advances was 21.9 and 15.4 per cent respectively. Thus the rural and the semi-urban branches collected more from and advanced less in the rural areas. The rate of growth of cooperative credit has also slowed down in the last few years. The factor most responsible Tor decelerating the rate of credit expansion is the mounting overdues both in the short and medium/long term credit. The problem Of overdues has, in fact, been agency neutr.al and is common whether the agency is cooperative commercial banks or the government. The overdues in the cooperatives have reached about 42 per cent of the demand. The recovery performance of commercial banks has been even worse and w,as only ''50.20 per bent in the case of public sector banks at June end 1978. There are also considerable regional imbalances in the supply of credit. Five States of Andhra Pradesh, Gujarat, Maharashtra, Punjab and Tamil Nadu accounted for 52 per cent of the total agricultural credit supplied. In the matter of credit availability to weaker sections, their percentage share in cooperaHve credit has risen at a higher rate than in the commercial banks' credit, though in either case it remains short of the needs. 9.70 The main objective's of the institutional credit policy under the Sixth Plan would therefore be to:

a. b. c. d. e.

secure an increase in the total volume of institutional credit f or agriculture and rural development; direct a larger share of the credit to the weaker sections; reduce the regional imbalances in the availability of credit; bring about greater coordination between different credit institutions under the multi-agency siystem; and improve the recovery of institutional loans to ensure continuous re-cycling of credit.

9.71 The availability of institutional credit to agriculture and allied activities has been projected to expand from the base level of Rs. 2550 crores in 1979-80 to Rs. 5415 crores in the terminal year (1984-85) of the Sixth Plan. An almost four-fold step-up is projected in the commercial banks' short-term loans. The share of priority sector in the total advances by commercial banks is to be increased to 40 per cent, of whiph the share of agriculture and allied activities will again be at least 40 per cent, i.e., 16 percent of the total advances. Separate sub-targets will be laid down for the weaker sections and further within this group for the landless labourers, artisans, etc., namely, those who do not have a land base and for whom additional income generation will have to be through endowment of new productive resources. Endeavour will be that at least 50 per cent of the total institutional credit goes to the weaker sections. Special attention will be given to preparing viable economic projects for women and credit made available to them accordingly. With a view to reducing the regional imbalances in the availability of credit, it is proposed to substantially expand the number of rural branches in under-banked areas and establish Regional Rural Banks in more districts. The programme is to take the number of Regional Rural Banks from the base-year level of 65 to 170 during the Plan period to cover 270 out of 405 districts. Besides, efforts will be made to so coordinate the operations of the cooperative and commercial banks that the latter supplement the former in meeting the needs of areas with large credit gaps, as was originally intended in the multi-agency approach. It has been noticed tha* the commercial banks' credit has also tended to flow largely to the very areas where cooperative credit structure was strong enough, with areas of low credit availability continuing to remain deprived. The district credit plans are expected to bring about such coordination and specifically apportion the relative roles and responsibility in this behalf to the various credit institutions operating in the area. The State-wise targets will be broken down into district and block-wise targets in conformity with the development needs of the area and of the special an^-poverty programmes like the Integrated Rural Development Pro-eramme. The poor recovery performance or both the cooperatives and commercial banks particularly in some' States of the country has been due partly to internal organisational inadeauacies and partly to the general environment. The State Governments would be expected to take necessary measures to ensure an appropriate climate for recovery and suitably assist the credit institutions, both cooperatives and Commercial Banks, in the recovery of loans. Any pressures for the general writing off of overdues mus be resolutely resisted. 9.72 With a view to bringing about better coordination in the credit policies impinging on short, medium and long-term financing of agriculture and allied activities, including marketing, processing and storage, as well as rural industries, it is proposed to establish a National Bank for Agricuture and Rural Development (NABARD). The necessary legislative action for establishing the Bank is already under way. The Bank will be the apex re-financing institution in the country for these activities and will combine the developmental and financial roles which were hitherto being performed by the Reserve Bank of India and Agricultural Refinance and Development Corporation (A.R.D.C.). 9.73 The level of credit support during the Plan period projected for different credit agencies is indicated below: Table 9.2 Targets of Agricultural Credit by different institutions (Rs. crores) Agency (1) Cooperative Short term Medium term Long term Comnewa! Banks (including Regional Rural Banks) Short term Term loans Anticipated advances in 1979-80 (2) 1300 125 275 450 400 Level to be reached in the year 1984-85 (3) 2500 240 555 1500 620

Total

2550

5415

Bengal, Gujarat and Tamil Nadu. The scheme is based on area approach and it covers the loss of production due to drought, excessive rain, Hood, freeze, frost, hail, snow, windstorm, cyclone, insect infestations, plant disease and any other unavoidable causes of losses due to adverse weather conditions. The Insurance Policy is issued in favour of the financing institutions and insurance is based on crop loan of Ihe cultivator. The State Governments are co-insurers with General Insurance Corporation of India and share the premium and the indemnity to the extent of 25 per cent. The Government of India subsidises the premium payable by the small and marginal farmers in the special programme areas like IRD, SFDA, etc. upto 25 per cent and the concerned State Governments share another 25 per cent. The experience of West Bengal, Tamil Nadu and Gujarat brings out the benefit that could b; derived under the scheme. Durin" the Sixth Plan period, it is proposed to extend the coverage of the pilot insurance scheme to more states in the country. STORAGE AND WAREHOUSING 9.73 With the availability of increasing marketable surpluses in agriculture, .Inadequacy of storage has emerged in the last few years as one of the mors serious problems of post-harvest management. The problem has been further compounded by the inability of the railway system to evacuate the procured food stocks from the surplus to the deficit areas at a fast enough pace and the inadequacy of rice milling capacity in Punjab and Haryana entailing prolonged storage tapacity putting thus further strain on the existing storage capacity. The Rural Credit Survey Committee (1954) had recommended a three-tier storage system at (a) the National level, (b) State and district level, and (c) village and rural level. In accordance wi'h its recommendations, the Food Corporation of India and Central Warehousinf Corporation were required to create storage facilities at centres of all India importance, the State Governments and State Warehousing Corporations it Centres bf State/district level importance and the rural storage meeds were to be looked after bv the cooperatives. Owned .and covered storage capacity with various public agencies increased from 118.72 lakh tonnes on the eve of the Fifth Plan to 185.78 lakh tonnes on 31st March, 1980 as under: CROP INSURANCE 9.74 Farming in India is prone to various adverse climatic conditions, leading to several risks and economic losses to the farmers. Both rain-fed and irrigated farms are subject to the vagaries of nature resulting in damage to crops and thereby causing losses to the farmers, affecting their economic status. The vulnerability of the farmers and the hazards and risk arising from factors beyond their control underscore the need for devising an arrangement to protect the farmers from such crop losses. It is 'in this context that the need for having a crop insurance scheme is being urged in different forums from time to time. From 1979 onwards, a pilot Crop Insurance Scheme is being implemented in the States of West Table 9.3 Storage Capacity lakh tonnes Agencies (1) Food Corporation of India Central Warehousing Corporation State Warehousing Corporations State Governments Cooperatives 31-3-1974 (2) 51-47 11-65 5-60 18-00 32-00 31-3-1980 (3) 75-87 19-65 24-10 19-16 47-00

Total

118-72

185-78

9.75 A Scientific storage capacity of another 48 lakh tonnes has been created in the private sector under a scheme of the ARDC on guaranteed utilisation by FCI for a stipulated period. Even so, the shortage of storage capacity has been such that the FCI has still to maintain its make shift CAP (cover and plinth) storage of upto 70 lakh tonnes. The storage programme of the cooperatives is mainly related to tneir own commercial needs at the village societies' and the marketing societies' levels, i.e., for temporary storage of their members' produce for marketing and ior stocking of fertilizers and other farm inputs and consumer articles. 9.76 A national programme of storage will be pio-mulea with a view to developing a well spread out siorage grid right from the farm to the national level. In tins context, it is proposed to have at the base a net work of rural godowns so as to have at least ten to fifteen godowns of appropriate capacity in each block within the course of the next five years. Bulk of these rural godowns will be in the cooperative sector. Each village cooperative will be assisted to have a godown of at least 100 tonnes capacity under a phased programme of coverage. According to the programme 52,000 village cooperatives will be having such godowns by 1984-85. To augment the storage capacity with village cooperatives, a Centrally Sponsored scheme of Rural Godowns has been initiated where under assistance will be given to Market Committees or State Warehousing Corporations or Cooperatives to build godowns of somewhat larger capacity of 200 to 1000 tonnes in rural areas to facilitate storage of produce by farmers and also to meet the needs of decentralised local storage of commodities under public distribution system. The total capacity planned under this scheme is two million tonnes. 9.77 The next two higher tiers of storage organisation are tlie State Warehousing Corporations (SWCs) and the Central Warehousing Corporation (CWC) besides the Food Corporation of India which as the buffer stock organisation has to have substantial storage capacity of its own. While the owned capacity of the F.C.I, is almost wholly used for stocking of foodgrains procured by it, only about 50 60 per cent of the capacity of the S.W.Cs and the C.W.C. is generally taken by foodgrains and the rest by other agricultural commodities. The storage capacity owned by the marketing cooperatives, which is at the market level, is generally used for their own trading purposes or on behalf of their members and for stocking of fertilizers and other commodities which they deal in. The storage programme envisaged for the S.W.Cs., C.W.C. and the F.C.I, during the Sixth Plan period is based on a realistic assessment of the storage requirement of procurement operations for a buffer stock of 15 million tonnes, in conjunction with the needs of the public distribution system and demands on storage of other agricultural commodities and inputs. A larger programme of construction, though justified, is not permitted by the constraint of resources. Consequently recourse will continue to be taken to hired and CAP storage during the Plan period. 9.78 To promote scientific storage at the farm level among the small and marginal farmers, subsidy will be given to them under the Integrated Rural Development programme for storage bins. In some States, special promotional stall has also been appointed to demonstrate to the farmers proper storage and handling practices, besides the 17 'Save Grain Campaign' teams which are fimcdoning in close collaboration with Slate Governments. 9.79 An outlay of Rs. 259 crores has been provided m die Sixth Plan for creating additional 76.60 lakh tonnes of storage capacity by C.W.C., S.W.Cs and F.C.I, and tor the strengthening of Indian Grain Storage Institute, Hapur and Farm level Ssorage. Another 55 lakh tonnes of storage capacity would be created during the Plan period by the Cooperatives and under the Rural Godowns scheme, the financial provision for which has been reflected in the outlays ioi Cooperation and Rural Development. Besides, another million tonne capacity is expected to be added in the private sector under the A.RDC assisted scheme. Agency-wise targets of construction of additional storage capacity are as under: Table 9.4 Additional Storage Capacity (lakh tonnes)

Agency (1) Food Corporation of India Central Warehousing Corporation State Warehousing Corporations Cooperatives Rural Godowns Scheme Total AGRICULTURAL PROCESSING AND MARKETING

Capacity (2) 35-60 (excluding spill-over works of 10 lakh tonnes to rext Plan) 16-00 25-00 35-00 20-00 131-60

9.80 The motivation to produce more finally comes from the prices that the farmer is able to get for his produce. Production gluts leading to depression in prices received by the farmer have in the past frequently led to set-back in production in succeeding years. This has been more so in the case of perishable commodities like onions, potatoes, sugarcane, etc, where, for want of adequate preservation and processing facilities, the farmer has been wholly exposed to exploitative trading forces, without the consumer benefiting in any way. A marketing system which protects the interests of both producers and consumers is, therefore, the backbone of agricultural development. It must have tfuee essential elements: (i) a suitable structure of support prices for various agricultural commodities adjusted from tune to time m the hghi: of cost of production so as to ensure fair reiurn to the farmers; (ii) adequate arrangements for procurement of agricultural produce on support prices if the prices fall below that level; and (iii) a well spread-out and regulated infrastructure of marketing which will ensure fair price to the producer in open market conditions and help eliminate non-functional marketing margins of inter-mediaries. 9.81 Reference has already been made in the Chapter on Economic Policies in regard to the commitment of the Plan to the fixation of remunerative support prices for various commodities. Over the years, the number of commodities covered under support prices has been considerably enlarged. It is proposed during the Sixth Plan to keep reviewing from time to time the need for inclusion of more commodities, both perishable and non-perishable, in the support price structure. In recommending the support prices, the Agriculture Prices Commission will take into account the cost of production so that the prices recommended are such as are remunerative to the farmer. 9.82 The principal public agencies involved in support price operations (procurement) on behalf of the Government are the Food Corporation of India, Cotton Corporation of India, Jute Corporation of India and the Cooperatives with NAFED as their apex organisation. Besides, some State Governments have also been procuring agricultural produce, particularly food-grains, on support prices, cither departmentally or through their own Civil Supplies Corporations. Necessary financial support will be given to these agencies during the Plan period so that they arc well equipped to undertake these operations as and when called upon 10 do so. The Storage facilities, both with the FCl as well ,as the Central and State Government Corporations, will be considerably augmented during the Plan period, the details of which have befcn given elsewhere in the Chapter, to enable them to effectively handle procurement and distribution operations. 9.83 National Agricultural Cooperative Marketing Federation of India (NAFED) has been playing a useful role in stabilising market prices of perishable commodities like onions and potatoes in principal producing areas by strategic market interventions at times on its own and sometimes as an agency of the Goveinment. Their role in the procurement of soybean has also been noteworthy. It is proposed during the Plan period to put the procurement role of NAFED in such commodities on a stable footing and for that purpose to strengthen its capital base so that it is ab!e to undertake these operations on the necessary scale.

9.84 An adequate amount of cold storage and processin" facilities is critical for perishable commodities. It has been considered desirable that these facilities may be increasingly provided in the cooperative sector so that these are owned by the tarmeia themselves and operated to their benefit. Considerable expansion is, therefore, envisaged in the cooperative cold storage and processing capacities. Jn the North-Eastern Region, where the cooperative structure is weak, the marketing and processing of fruits anc ^egl-iaaies is proposed to be done through a corporation 'o be established in the Public Sector. In Jammu & Kashmir, a corporation for the marketing of fruits has recently been established which will be givea ihe required financial backing during the Plan period to expand its activities. 9.85 There are at present 4452 regulated markets ia the country, comprising 1906 principal markets and 2546 sub-market yards. In addition, there are about 22,000 'hats' or 'shandies', which for a great majority of farmers in India, particularly the small producers constitute the focal points 'for disposal of [arm produce as well as sale and purchase centres for non-agricuitural products. A number of steps have been taken over tlie last thirty 3'ears, aimed at regulating the marketing practices, standardising weights and measures, developing suitable infrastructure facilities in assembling markets, introducing quality standards through "Agmark" certification, etc. Though the legal framework has been provided through Agricultural Produce Markets Act in most States, the progress in the development of markets and in the en-torceme:it of the Act lias, however, been very uneven. For want of proper enforcement of the Act, the actual trading practices and the various deductions and charges that a producer-seller has to pay still continue to remain unchanged in a large number of markets in many States. This is particularly so where the department or wing for agricultural marketing and/or the State Agricuiutral Marketing Board is not equipped with the necessary machinery for acquisition of land, and planning and supervising the development of markets, and for enforcing the market regulations. The main thrust, therefore, of the Sixth Plan will be on (a) further expansion of the regulated markets system in terms both of more markets and commodities to be brought within the scope of regulations; (b) strengthening and streamlining the arrangements for encforcement/and inspections, to ensure a regulated system of open auctions, trading practices and margins of inter-mediaries (commission agents); and (c) development of rural markets and shandies and estab'ishment of rural markets in areas where such facility is not available within a reasonable distance. 9.86 In expanding the regulated markets system, particular emphasis will be given to bringing within the fold of regulation as many of the primary markets as feasible, so as to confer the benefit of regulation on them. Development and establishment of new rural markets on a sufficiently wide-spread basis is of particular relevance to the small producer who for want of a viabie marketable surplus is unable to go to the market town and is, therefore, obliged to sell his produce at lower rates to the local traders. Assistance will be provided under a Central Sector Scheme for the development of terminal markets, markets in command areas of irrigation projects and rural markets. Recourse will also be taken to an increased extent to institutional finance from A.R.D.C. and commercial banks for the development of infra-structural facilities in the markets. EXPORT MARKETING 9.87 One of the important objectives of the Sixth Plan is to increase production of export-oriented agricultural and agro-based commodities so as to double our income through foreign exchange earnings. This we have to do, out of necessity, to earn the much needed foreign exchange to meet the import bills. Our entire capacity of monitoring international trends in agricultural trade will have to be greatly improved. Ad-hoc arrangements in the export and import of agricultural commodities should give way to wellplanned and nationally relevant thrusts. We must plan and produce agricultural commodities for export rather than exporting what is available in excess in the country. Care must be taken not to export goods and commodities such as raw forest products, animal feeds, etc. which are best utilised for promoting village level enterprise and value added products. The table below indicates export targets visualised for the selected agricultural commodities for the Sixth Plan. Table 9.5 Export projections of selected agricultural Commodities for the Sixth Five Year Plan

Sl.No. (0) 1 2 3 4 5 6 7 8 9 10 11 12

Commodity (1) Rice Sugar Cotton Oil seeds (HPS groundnut etc.) Castor Oil Tobacco Spices Cashew Tea Coffee Cardamom Marine products

Unit (2) Lakh tonnes 000'tonnes Lakh bales of 170 Kgs. each 000' tonnes 000' tonnes Million Kgs. 000' tonnes 000' tonnes Million Kgs. 000' tonnes Tonnes 000' tonnes

Export projections 1984-85 (3) 30 600 to 1000 3 160 90 105 185 45 260 94-1 4100 150 to 160

Possibility of exporting larger quantities will be kept under re/iew depending on domestic output and consumption. 9.88 To achieve these export targets, we have to back our efforts with a well thought of strategy and also to generate investment. In the international market, there is intensive competition both in terms of quality and prices. There are various other inhibiting factors like tariff and non-tariff barriers in the importing countries. Effort requirement to generate substantial additional exports will thus have to be much greater than what is needed for increasing production. Another important fact to be noted is that the exports of agricultural commodities have not received the same degree of promotional effort as the industrial products. This is in spite of the fact that most of the commodities exported are produced by small farmers, who, in fact, need much greater support than well organised industries and business houses. It is also worth noting that small amount has been spent during the last two-three decades on research and development of the agricultural commodities which have export potential as compared to the large sums spent in industrial sectors. Finally, in the export marketing effort also, agricultural commodities have been left far behind. The fact that export of agricultural commodities has continued and even shown some increase does not mean that without adequate effort and investment the same trend will continue in future. A number of countries have now emerged exporters of agricultural commodities and some of them are making rapid progress. The modern technology on post harvest handling, pro-cessing and packaging has been adopted in a number of developing countries, the area in which we are far behind. Cost of packaging in India is so high that most of our products are out of reach of the domestic consumers and cannot compete in the international market. A large potential for the development of agro-based industries has remained unexploited. 9.89 Some of the traditional items like tea and coffee have made good progress and further promotional efforts would yield rich dividends. It has become necessary to identify new areas where the growth rate can be much higher. In this regard items like rice, cotton, vegetables, fish and fish products, eggs, meat, processed foods and minor spices can be mentioned. In some of these areas we are yet to make a mark as potential exporters. It should be our endeavour to give an export orientation to agriculture after ensuring that the basic needs of our population for various food items are fully met. Full advantage needs to be taken of growing opportunities for international agricultural trade. For this purpose it will be necessary to strengthen arrangements for transport and shipping in addition to packaging and forwarding. In short, in order to have exportable surpluses, we seed to adopt aggressive policies to induce suitable investments in production, storage, transport and other marketing infrastructure. Stability of supply,

quality of produce and price competitiveness will determine our success in becoming an important country in international agricultural trade. AGRICULTURAL STATISTICS 9.90 For meaningful formulation of the Agricultural Plan the role of agricultural statistics cannot be overemphasised. Out of the total reported area of 304 million hectares, estimates for 4 per cent of the area are based on complete enumeration, 9.3 per cent on sample surveys and the remaining 5.3 per cent on conventional methods. In regard to foodgrains, 94.5 per cent of the production ot cereals and 73 per cent of the production of pulses are based on crop estimation surveys. As for commercial crops, these percentages are y9 for jute, 94 each for sugarcane and greundnut and 75 for cotton. The areas of fruits and vegetables, irrigation, livestock, milk, fish and forestry products leave much to be desired in the collection of reliable statistics. Even in the case of foodgrains and commercial crops there is great scope for improvement, especially in respect of sample surveys and use of crop cutting experiments. 9.91 Under the Sixth Plan efforts will be directed towards (a) collection of land utilisation statistics for nonreporting areas in the North-Eastern Region; (b) coverage of Soybean and sunflower as also major pulses in the field of forecast crops; (c) availability of more reliable statistics on important fruits and vegetables; (d) collection of statistics on production of major livestock products on the basis of sampling techniques already developed; (e) streamlining the arrangements lor collecting statistics on inland fish production on the basis of methodology recommended to the States; (f) evolving a unified system of conducting sample surveys for collection of statistics on marine fish production by the Central Marine Fisheries Research Institute (CMFRI), Cochin and the concerned States; and (g) setting up of statistical units equipped with qualified/ trained staff lor collection of forestry statistics in different States and ensuring proper co-ordination among various field agencies entrusted with tills responsibility. The Directorate of Economics and Statistics, Indian Agricultural Statistics Research Institute and National Sample Survey Organisation would examine these recommendations for early implementation under the Sixth Plan. Necessary financial and technical support could be provided, if considered necessary. 9.92 Further, the on-going centrally sponsored schemes of (i) timely reporting of estimates of area and production of principal crops; (ii) improvement of crop statistics; (iii) establishment of an agency for collection of agricultural statistics on complete enumeration basis in the States of Kerala, Orissa and West Bengal; and (iv) the Central schemes for improvement of irrigation statistics, agro-economic research and farm management studies would be implemented with greater vigour and proper supervisory support. The Agricultural Census operations, another important continuing central scheme, would need whole time guidance and supervision. PUBLIC POLICIES 9.93 The activities of the Government in the field of agricultural research in the promotion of appropriate technology and in the provision of inputs and services are essentially in the nature of assistance provided to an individual farmer or to fairly specific categories of farmers. There are, however, certain other elements in the agricultural policy package which are more wide ranging in their motivation and in their impact. One such element is the policy on land reiorms which is based not merely on the requirements of production but on larger considerations of distributive justice. Another element is the policy on agricultural prices which affects land use, production and income distribution in a profound way. A third element is the approach of the Government on mitigating and coping with disasters like droughts and floods In what follows the approach of the Sixth Plan with regard to these general elements in the policy package is described. LAND REFORMS 9.94 Land is the primary resource on which agriculture is based. The pattern of ownership of this asset has to be just and rational if we are to secure growth with social justice. The objectives of the land

reforms policy over the successive Plans have been to remove such impediments to agricultural development as arise from the agrarian structure inherited from the past aad to eliminate exploitation and social injustice within the agrarian system so as to ensure equality of tenurial status and opportunity to all. The main elements of the land reforms policy have been five-fold, r/z., (i) abolition of intermediary tenures; (ii) tenancy reforms comprising regulation of rent, security of tenures and conferment of ownership rights on tenants; (iii) ceiling on land holdings and distribution of surplus land; (iv) consolidation of holdings; and (v) compilation and updating of land records. Intermediary tenures have by and large been abolished all over the country through the abolition of zamindari, jagirdari, inams etc., as a result of which, about 20 million cultivators are estimated to have come into direct contact with the State. Legislative measures have been taken for providing to the tenants security of tenure and for regulating rates of rent payable by them. The maximum rates of rent have been fixed at levels not exceeding 1/4th to lj5th of the gross produce in all the States except in Andhra Pradesh (Andhra Area), Har-yana and Punjab. However, in regard to the conferment of ownership rights on cultivating tenants, the existing legislation in the States of Andhra Pradesh, Bihar, Tamil Nadu, Haryana and Punjab still falls short of the accepted national policy. In West Bengal, while all under-raiyats have been brought directly ia relationship with the State, this does not include Bar-gadars (share-croppers) though they have been protected against eviction at will. 9.95 Laws on ceiling of agricultural land based on the national guidelines on land ceilings have been enacted and are being implemented in practically all the States of the country where land ceiling is relevant, i.e., except Nagaland, Meghalaya, Arunachal Pradesh and Mizoram where land is generally held by the community. However, the progress of taking over and distribution of ceiling surplus land has been tardy. Out of about 15.74 lakh hectares declared surplus in different States, as in March, 1980 only about 9.56 lakh hectares have been taken possession of by the States and about 6.79 lakh hectares distributed. Distribution of ceiling surplus land has benefited nearly 11.54 lakh landless persons, of whom 6.13 lakh beneficiaries belong to the scheduled castes and scheduled tribes. However, not much effort seems to have been made to assist the allottees to develop the land, as would be evident from the fact that the centrally sponsored scheme of assistance to assignees of ceiling-surplus land has not been fully made use of. The implementation of the ceiling laws has been often hampered by slow disposal of appeals and revision filed by land-owners against the orders of the revenue authorities. The State Governments have been advised to restrict the number of appeals and revisions against orders of the land reform agencies ro a total of two and also to strengthen the appellate machinery dealing with such reform cases at all levels. In most of the States now only one appeal and one revision is allowed. Steps have also been taken for the reduction of the permissible time for the filing of appeal and revision petitions, and in some States the administrative machinery dealing with land reform cases has been strengthened and additional Tribunals constituted. Besides the distribution of ceiling surplus land, 2.1 million acres of Government waste land were distributed during 1975-78 to the landless, majority of whom belong to the scheduled castes, scheduled tribes and other weaker sections. 9.96 The national policy on land reforms right from its inception has continued to press the need for consolidation of holding. Most of the States in the country have enacted legislation to undertake consolidation of holdings. It is estimated that by now. nearly 45 million hectares of land, i.e., about 1/4th of the consolidable land has been consolidated all over the country. However, the implementation has been extremely patchy and sporadic. Only in Punjab, Har-yana and Western Uttar Pradesh. the work is complete. Even a beginning has not been made in the Southern States and Rajasthan. In the Eastern States, some work has begun only in Orissa and Bihar. 9.97 It has been recognised that updating of land records is essential not only for implementation of land reforms but niso for access to agricultural credit which relies heavily on title to land. The sta^s of land records varies from State to State. While in some States the records are fairlv up-to-date, in some States, specially in the Eastern Region where Zamin-dari System operated earlier, there was little relationship between entries in the records and the realities in the field. A systematic programme of compilation and correction of land records had, therefore, been undertaken all over the country to reflect up-to-date position about ownership and the rights of the tenants, share-croppers and other holders. Though

considerable work has been done. much groiwid still remains to be covered io respect of this programme. Constraint of resources and organisational inadequacies have been some of the limiting factors. 9.98 Conferment of ownership rights on home-stead tenants who belong to the poor sections of the rural community has been one of the objectives of the land reform policy. Security of tenure and ownership rights have been conferred on home-stead tenants in all States. There has been a separate Plan scheme under the Minimum Needs Programme for provision of house-sites to the landless in rural areas since 1971, under which 7.7 million house-sites have so far been allotted to landless families in rural areas. 9.99 The land reforms policy, outlined above, which has been under implementation, is a comprehensive one and has been nationally accepted. If the progress of land reforms has been less than satisfactory, it has not been due to flaws in policy but to indifferent implementation. Often, the necessary determination has been lacking to effectively undertake action, particularly in the matter of implementation of ceiling laws, consolidation of holdings and in not vigorously pursuing concealed tenancies and having them vested with tenancy/occupancy rights as enjoined under the law. The main s^ategv of land reforms under the Sixth Five Year Plan, therefore, would be to ensure effective implementation of the already accepted policies. 9.100 The implementation of various elements of this policy, more specifically the following, would be taken up during the Sixth Plan period on a time-bound basis;

1. 2. 3.

4.

5.

States which do not have legislative provisions for conferment of ownership rights on all tenants except for specified exempted categories (serving defence personnel, minors, disables, etc.) shall introduce appropriate legislative measures to do so within a period of one year, i.e., by 1981-82. The programme of taking possession and distribution of ceiling-surplus lands would be completed within a period of 2 years, i.e., by 1982-83. Priority in allotment of surplus land would be given to scheduled castes and scheduled tribes among the landless. A systematic programme would be taken up for compilation/updating of land records, to be phased for completion within a period of 5 years, i.e., 198085. In States where the backlog is heavy, aerial survey techniques may be employed for expeditious survey operations. Each cultivator would be given a pass book indicating hie status/title to land, description of the land (areas, class, etc.) along with a copy of the khasra map and such other details as are considered necessary. Appropriate - revision wil] be made in ihe revenue laws to confer legal status on this document as proof of title and rights in land. Programme of consolidation of holdings , would be taken up by all States, phased for completion in 10 years, with priority to be given to command areas of irrigation projects where it should be completed in 3 to 5 years. Legislative measures for preventing fresh fragmentation of holdings after consolidation) below a minimum size would also be considered. The programme for the provision of house-sites to the landless will be completed.

9.101 Apart from these, certam other measures will be necessary. Necessary action would be taken to bring before the Parliament Land Reforms Acts, not yet included in the Ninth Schedule of the Constitution, for immediate inclusion in the said schedule and the same would be done in the case of future Acts without delay, so that these laws are protected from challenge in courts. Revenue machinery would be strengthened appropriately in each State to ensure effective implementation of land reform laws, more specifically the ^nancy and ceiling laws. Greater initiative will need to be taken by the State Governments to force the pace of development of Bhoodan lands, particularly such lands as are available in compact blocks. 9.102 In many States, the choice for using available water in the command areas of irrigation system for either or both the crops lies with the farmer. In many command areas of new irrigation projects, i.e., Tawa, Rajasthan Canal, Mahi, Kadania, etc., fear of being hit by the ceiling law has been found to be one of the inhibiting factors for full utilisation of irrigation waters. It apepars necessary to end this situation of 'laissez

faire'. The ceiling laws should be automatically brought into force, in accordance with the stipulated water utilisation pattern of a particular irrigation system, so that the use of irrigation resources built at considerable cost is not withheld at the choice of individuals. 9.103 The centrally sponsored scheme of assistance to allottees of ceiling-surplus land, which was till now applicable only to areas other than where special programmes of SFDA, IRD ,etc. were in operation, will be contmued, to cover the whole country in conjunction with assistance available from the IRD programme. The State Governments will be required to work out a specific programme of development of allotted lands so that the funds available under the scheme are meaningfully employed.

7th Five Year Plan (Vol-2)

AGRICULTURE AND ALLIED ACTIVITIES
Approach and Major Thrusts in the Seventh Plan 1.1 Agriculture occupies a key position in the Indian economy because of its contribution to over-all economic growth through supplies of food, raw materials and exports. It is a source of livelihood for a majority of the population and provides a large market for non-agricultural goods and services. 1.2 The area, production and per hectare yield of foodgrains and major commercial crops from First Plan onwards are given in Annexure I. It will be seen that agriculture output continued to grow at a steady rate during the Sixth Plan period. The performance was particularly impressive in the case of foodgrains. The output of foodgrains which was 132 million tonnes in 1978-79 rose significantly to 151.5 million tonnes in 1983-84. This has been made possible by the accelerated increase in area under irrigation and increased use of high yielding varieties of seeds and fertilizers (Table 1.1). Apart from the provision of infrastructure, the factors mainly responsible for these achievements are the extension of new technology and procurement of foodgrains at remunerative prices. As a result of these developments, not only selfsufficiency in foodgrains has been achieved but also significant possibilities have opened up for further growth of agriculture through modernisation. 1.3 However, there is no evidence, as yet, of a decline in the amplitude of annual fluctuations in the output of foodgrains in the country, because a large proportion of foodgrains continues to be produced under conditions of uncertain rainfall, and even a good part of minor irrigation including the so-called controlled irrigation through wells is vulnerable to the vagaries of monsoons. The persisting fluctuations in agricultural output suggest that there is no basis for complacency and slackening of developmental efforts in agriculture in the wake of a succession of good harvests and consequent accumulation of stocks. It also suggest the need for regional dispersal of output growth through the expansion of assured irrigation in areas where the proportion of area irrigated is low and through the development of dryland farming where irrigation is either not possible or is uneconomical. In a large country like India with significant spatial variations in agro-climatic conditions, a regional dispersal in the growth of foodgrains output is tikely to even out annual fluctuations in aggregate output and reduce the costs of distribution on account of carrying stocks from year to and transportation across the regions. 1.4 Another feature of agricultural performance is that the bulk of increase in output particularly foodgrains, has been concentrated in a few regions which are wellTABLE 1.1 Progress of Crop Production and Selected Inputs Unit 1978-79 Sixth Plan 1983-84 Target Actual Million tonnes 131.9 153.6 151.5

Item (i) Foodgrains

1984-85 Anticipated 148-150.5

(ii) Oilseeds (in) Sugarcane (iv) Cotton (v) Jute & Mesta (vi) High yielding varieties (vii) Fertiliser: N P K TOTAL (iii) Irrigation: Potential Utilisation

Million tonnes Million tonnes Million bales Million bales Million hectares

10.1 151.6 7.9 8.3 41.1

13.0 215.00 9.20 9.08 56.00

12.8 177.0 6.58 7.40 52.50

13.0 180.00 8.50 7.80 56.00

Million tonnes Million tonnes Million tonnes Million hectares Million hectares

3.4 1.1 0.6 5.1 54.46 50.65

6.00 2.30 1.30 9.60 70.35 66.24

5.24 1.76 0.80 7,80 65.62 58.71

5.6 1.9 0.9 8.4 67.89 60.47

endowed with infrastructure like surface irrigation, rural electrification, roads and markets and where farmers are resourceful in terms of their capacity to invest and bear risks. The favourable institutional framework in such areas is also responsible for the initiative and drive displayed by the farmers. It has been estimated that such developed areas accounting for less than 15 per cent of the area under foodgrains in the country contributed as much as 56 per cent of the increase in foodgrains production in the post-green revolution period. Because of this concentration of growth among the developed regions where the consumption of foodgrains is already at a high level, the marketed surpluses of foodgrains have been rising at a high rate, resulting in accumulation of large stocks with the government, especially when there is succession of good monsoons, while the per capita consumption of food-grains in the country has not been rising appreciably. It has also been estimated that the growth of agricultural output in the recent past has not been commensurate with the increase in inputs, indicating a decline in productivity of inputs. Although the demand for labour generated in high growth pockets has led to largescale employment of migrant labour from the poorer regions, the demand for labour-displacing machinery like harvest-combines has also been growing. A more balanced growth of agriculture as between different regions and classes of farmers can lead to a rise in the purchasing power of the rural poor through the rise in employment and wages and incomes of small and marginal farmers in the less prosperous areas. Such a pattern of growth is also likely to be cost-effective because of low wages in the less developed regions due to under-employment. Also, since yields are low in these areas, the output response to the package of modern inputs is likely to be greater than in areas where the use of such inputs is already at a high level. The strain on storage and transportation of foodgrains will also be eased because of greater regional dispersal of surpluses. 1.5 Another aspect of imbalance in Indian agriculture concerns crop-wise disparities in growth, between food-grains and non-foodgrains on the one hand, and among different foodgrains themselves on the other. Part of this inter-crop imbalance derives from regional imbalances. For instance, a breakthrough in rice output in the eastern region where the yields are low and where there is a significant potential for growth, can redress part of this inter-crop imbalance. Similarly, a breakthrough in dryland farming by raising the output of millets, pulses and oilseeds can also correct these inter-crop imbalances. Since small and marginal farmers predominate in these regions, they can benefit a great deal from such development. Fixation of prices of crops at appropriate levels to ensure inter-crop parity and procurement of output would also be necessary for promoting optimal use of agricultural resources by correcting intercrop imbalances. A further area of major concern is the adverse environmental effects of continued decline in area under forests because of denudation. A massive effort to restore ecological balance through afforestation would be necessary for water and soil conservation which would raise crop productivity in addition to meeting the growing requirements of fuel and fodder.

1.6 It follows from the above that broadening the base of agricultural growth and modernisation through infrastructure development, e.g., irrigation, drainage, roads, markets and credit institutions in the less developed regions, extension of new technology, particularly breakthrough in dryland farming, afforestation and appropriate price and procurement policies for crops are essential for accelerating the growth of agricultural output, reducing annual fluctuations in output and for correcting interregional, intercrop and inter-class disparities. Such a pattern of growth can also provide the necessary impetus to rural development through the dispersal of agro-industries. This is how agriculture can contribute more effectively to the fulfilment of the national objectives of self-reliance, removal of poverty, increase in productivity and eco-preservation. 1.7 The target fixed for the growth of agricultural output during the Seventh Plan period is 4 per cent per annum and the target for foodgrains output is 3.7 per cent per annum. To achieve these targets, efforts will be made to irrigate an additional area of 11 million hectares during the Seventh Plan period. The consumption of fertilizers will be increased from 8.4 million tonnes in 1984-85 to 13.5-14.0 million tonnes in 1989-90. 1.8 The major programme thrusts in the Seventh Plan are:

i. ii. iii. iv. v.

Special Rice Production Programme in the Eastern Region. National Oilseeds Development Project, National Watershed Development Programme for Rainfed Agriculture, Development of Small and Marginal Farmers, and Social Forestry.

These programmes, discussed in the later sections, are briefly mentioned below: (i) Special Rice Production Programme in the eastern region In the eastern region comprising the States of Assam, Bihar, Orissa and West Bengal, eastern Uttar Pradesh and eastern Madhya Pradesh, the gap between the potential and actual yields of rice is the highest among the regions. For exploiting this potential for higher yields, a Special Rice Production Programme is being launched during the Seventh Plan period as a Centrally Sponsored Scheme in 20 per cent of the blocks in the eastern region. The emphasis of the project will be on removing the basic infrastructural constraints, both physical and institutional, through the development of irrigation, particularly exploitation of ground water, drainage, improvement in land tenure and development of credit and marketing institutions. For the success of this programme, special efforts will be made to evolve new varieties of rice and appropriate cropping systems to suit the varying agro-climatic conditions in this region. (ii) National Oilseeds Development Project Recently, the area under sunflower, soyabean and summer groundnut (irrigated) has been increasing significantly in certain States. This experience shows that the propects of achieving self-sufficiency in oil seeds are bright provided special efforts are made to extend the available technology, evolve new technologies and ensure price and marketing support. The National Oilseeds Development Project will be continued during the Seventh Plan period as a Centrally Sponsored Programme by providing operational flexibility to the State Governments to draw up programmes suited to local situations. Besides, a major technology mission for oilseeds will be mounted to evolve new varieties and practices for achieving a breakthrough in yields. Since raising profit margins for farmers as well as reducing variability in yields and prices are extremely important in the case of oilseeds, the efforts at vertical integration of production, marketing and processing through the growers' cooperatives will be encouraged. In this context, efforts will be made to strengthen the State-Level Oilseeds Growers' Federations, organised under the National Dairy Development Board's Oilseeds Project. (iii) National Watershed Development Programme for Rainfed Agriculture

On the basis of the past experience, it is proposed to take up during the Seventh Plan a new Centrally Sponsored Scheme called the National Watershed Development Programme for Rainfed Agriculture, to supplement the State efforts, by merging the ongoing programmes. The main components of Watershed Development Programme for Rainfed (Dryland) Agriculture are to harvest water and conserve soil moisture from the low rainfall which is also highly variable in these areas, and to extend farming practices and cropping systems which increase production by minimising yield risks. Since watershed is a natural drainage unit, it is the most suitable physical unit for land treatment and water management, which is the prerequisite for scientific development of dryland agriculture. It is proposed under this project to delegate to the State Governments the responsibility for evolving a suitable administrative framework for planning as well as implementing the project while Central Government would be responsible for the overall policy formulation and monitoring. (iv) Scheme for assistance to small and marginal farmers for increasing agricultural production The number of small and marginal holdings as well as the total area operated by them have been increasing whereas the average size of these holdings has been declining. In view of the growing importance of small and marginal holdings and their vulnerable economic position, raising productivity among these holdings is essential for stepping up the overall growth of agriculture as well as for ensuring social justice. The major constraint is their low capacity to invest and bear risks. These categories of farmers could not be adequately covered under the Integrated Rural Development Programme. The speical programme for small and marginal farmers is designed to assist them in the investment for irrigation and to provide various inputs. This programme will have to be supplemented by measures to improve their access to credit and extension services. Security of tenure and regulation of rents for sharecroppers would be necessary to provide incentives for intensification of input use. Consolidation of holdings so as to bring small and marginal holdings into continuous blocks of land will help provide various services to them economically and raise their initiative and group-effort. (v) Social Forestry Apart from the long-term benefits of eco-restoration including soil and water conservation, the immediate benefits of afforestation are substantial in terms of generating employment as well as providing fuel and fodder. Besides the State Sector schemes of social forestry, the Centrally Sponsored Scheme of Social Forestry including Rural Fuelwood Plantations, in operation in 157 districts at present, will be extended to cover all fuelwood deficit areas during the Seventh Plan period. Special attention will be given to the identification and propagation of indigenous, location specific and thermal-efficient species acceptable to the people. Efforts will also be made to bring down the unit cost of afforestation and to secure people's participation in a big way. Forest management would be made more sensitive to the aspirations and needs of the public. A National Wasteland Development Board has been established, which will formulate perspective plans and programmes for the management and development of wastelands in the country. The Council for Forest Research and Education would be strengthened for intensifying the activities of the Forest Research Institute and for promoting problem-oriented research by the research institutes established by the State Government, Universities and other agencies. 1.9 The implementation of the major programmes outlined above during the Seventh Plan would require concerted efforts in several areas influencing agricultural production. The areas requiring special attention during the Seventh Plan are: (i) water management, (ii) research and extension, (iii) credit institutions, (iv) agricultural price policy, and (v) farmers' participation. These are briefly discussed below. (i) Water management: As discussed in Chapter 3 on Irrigation, a high priority is given in the Seventh Plan for improving the utilisation of irrigation potential already created. Command Area Development Programme is designed to increase the effective area under irrigation as well as to raise productivity per unit of water used through its regulation and proper distribution and also through extension of new technology, supply of inputs, provision of marketing facilities, etc. Besides, exploitation of ground-water will be stepped up, particularly in the eastern Gangetic plains. Also, drainage will form an important component of water management during the Seventh Plan period. In the implementation of all these

programmes, priority will be given to areas where the proportion of area irrigated is low and there is a preponderance of small and marginal holdings, so that the increase in irrigation and improvement in its quality can lead to the maximum increase in cropping intensity and employment. (ii) Research and extension: Of considerable promise in the field of agricultural research is the effort to bridge the gap between the proven potential and the actual yields on the farms through adaptive research to suit the varying agro-climatic and socio-economic conditions. Priority will also be given during the Seventh Plan period to evolving intercropping and multiple-cropping systems suitable for different agroclimatic conditions. Research for biological fixation of nitrogen and to increase the fertilizer-use-efficiency by minimising losses in its use and for evolving varieties incorporating multiple resistance against pests and diseases and adverse environmental conditions will be encouraged. Steps will be taken during the Seventh Plan period to streamline and strengthen the extension service by bringing about coordination between T&V system and supply of inputs and related services. Measures will also be taken to enhance the capabilities of extension staff through training in professional skills, encouraging mutual exchange of experience and by providing necessary incentives to improve motivation. (iii) Credit institutions'. Mounting overdues of agricultural cooperative credit institutions have prevented recycling of scarce resources for expanding farmers' access to credit. This effects growth as well as impairs equity. Effective measures will, therefore, be taken during the Seventh Plan period to restore the cooperative movement to its normal health. In line with the major programme thrusts in the Seventh Plan, greater flow of credit needs to be ensured for the eastern region, dryland farming, oilseeds development and for small and marginal farmers. To achieve these goals, steps will be taken to improve the operational efficiency of cooperatives by ensuring adequate manpower with the requisite training as also by simplifying the procedural formalities. During the Seventh Plan period a comprehensive crop insurance scheme will be taken up under which there would be a built-in crop insurance cover in all crop loans. (iv) Agricultural price policy: Whereas the use of high yielding varieties aided by incentive prices and public procurement have contributed to a break through in the output of certain crops, notably wheat, they have also led to the creation of surpluses which cannot readily be absorbed while shortages persist in respect of certain other commodities. Agricultural price policy needs to be increasingly concerned with the maintenance of a scale of appropriate relative prices of crops so that the supplies of different commodities are brought in line with the respective demands. Also, procurement operations have to be strengthened for crops like rice, oilseeds and pulses in areas inadequately served with marketing infrastructure, to ensure that the producers are in fact, able to sell at the prices fixed by the Government. (v) Farmers' participation: While the farmers have individually responded adequately to the opportunities offered by the new technology and various infrastructural facilities and services provided by the Government, not much headway has been made in regard to their group or cooperative endeavour. In the ensuing phase of agricultural and rural development, the nature of activities is such that cooperative effort on the part of farmers would be particularly beneficial. Because of the growing awareness of farmers, the prospects for cooperative efforts are also encouraging. Water-management and pest-control on a group basis and joint endeavour in land development offer large benefits to individual farmers participating in them. Similarly, there is considerable scope for the exploitation of groundwater by bringing together small and marginal holdings. Growers' cooperatives for commodities like oilseeds can help to increase earnings by eliminating middlemen's margins in trading and processing. Afforestation, on the scale being envisaged, cannot succeed without the active involvement of people for growing and protecting the trees through groups effort and vigilance. In all these sectors, special efforts will be made during the Seventh Plan period to enlist farmers' participation on a large scale through decentralised planning by elected bodies, and through activity-specific associations and cooperatives. AGRICULTURAL PRODUCTION Targets of Crop Production for the Seventh Plan

1.10 The targets of crop production envisaged for the Seventh Plan are given in Table 1.2. The Statewise break-up of the production targets of foodgrains, cotton,jute, oilseeds and sugarcane are given in Annexure 2. The State Governments will have to disaggregate these targets further and fix district-wise and crop-wise targets separately for irrigated areas, assured rainfall areas and dryland farming areas so that there could be proper focus on evolving, implementing and monitoring suitable strategies for maximising production and productivity in each of the situations. Areawise break up of all India Plan target of foodgrains production is given in Table 1.3 1.11 Rice: For increasing rice production and productivity, steps will be taken for diversification of varieties, higher seed replacement, intensification of community nurseries programme and development of technology suitable for problem areas like deep water, drought/flood prone areas, pest-infested areas and saline and alkaline areas. Emphasis will be placed on the use of low cost and non-monetary inputs like timely sowing, line-sowing, optimum plant population, efficient water management and weed control measures. TABLE 1.2 Targets of Crop ProductionSeventh Plan Unit 1984-85 Assumed Seventh Plan Compound Growth Base Level Target (1989-90) Rate-column 4 over column 3 (% per annum) 2 3 4 5 Million tonnes 60.00 73.00-75.00 4.00-4.56 45.00 56.00-57.00 4.47-4.84 32.00 34.00-35.00 1.22-1.81 13.00 15.00-16.00 2.90-4.25 150.00 178.00-183.00 3.48-4.06

Crop

Million tonnes 7.30 9.37 5.11 2.60 3.82 8.03 0.60 0.74 4.28 0.50 0.72 7.71 0.20 0.25 4.56 0.60 1.28 16.27 0.30 0.6 14.98 0.50 0.66 5.61 0.40 0.56 6.96 13.00 18.00 6.72 Million tonnes 180.00 217.00 3.81 Million bales 7.50 9.50 4.84 of 170 kgs (v) Jute and Mesta Million bales 7.50 9.50 4.84 of 180 kgs TABLE 1.3 Area-wise (irrigated and unirrigated) break-up of All-India Plan Target of Foodgrains Production Crop Type of Area Area (Million Yield (Kg/hectare) Production (Million hectares) tonnes) 1 (i) Rice 2 Irrigated Unirrigated Total 3 21.5 22.5 44.0 4 2237 1151 1682 5 48.10 25.90 74.00

1 (i) Foodgrains (a) Rice (b) Wheat (c) Coarse Cereals (d) Pulses TOTAL Foodgrains (ii) Oil seeds (a) Groundnut (b) Rapeseed and Mustard (c) Sesamum (d) Safflower (e) Niger (f) Soyabean (g) Sunflower (h) Linseed (i) Castor TOTAI Oilseeds (iii) Sugarcane (iv) Cotton

(ii) Wheat

Irrigated Unirrigated Total

22.9 5.1 28.0 4.6 35.5 40.1 2.3 23.4 25.7 51.3 86.5 137.8

2210 1059 2000 1478 766 848 1130 573 623 2107 831 1306

50.60 5.40 56.0 6.80 27.20 34.00 2.60 13.40 16.00 108.10 71.90 180.00

(iii) Coarse Cereals

Irrigated Unirrigated Total

(iv) Pulses

Irrigated Unirrigated Total

TOTAL Foodgrains

Irrigated Unirrigated Total

1.12 The eastern region accounts for about 67 per cent of the total rice area in the country but contributes only less than 50 per cent of the country's rice production. In these States, the productivity of rice is much below the national average. Stagnation of production and low productivity levels of rice are affecting the income level of about 66 million rice farming families in these six States. The important factors responsible for this situation are the lack of suitable technology, particularly availability of improved varieties capable of withstanding the problematic environment as well as socio-economic constraints like poor infrastructure for input supply, credit and extension, inadequate irrigation and drainage facilities, small size of holdings and poor economic conditions of the farmers. 1.13 In order to overcome the existing constraints and accelerate the growth of production and productivity of rice is these areas, a pilot project was initiated in 1984-85 in 51 selected blocks in the eastern region, as a Central Sector project. A sum of Rs. 10 lakhs per block was sanctioned to the participating States for the implementation of the project. On the basis of the experience gained in implementing the pilot project, a special rice production programme is being launched during the Seventh Plan period as a Centrally Sponsored Scheme in 20 per cent of the blocks in the eastern region. The project will aim at identifying constraints in the way of rice production at the block level and undertake planning and implementation of suitable location-specific programmes. It will consist of several subprojects having different components based on actual area needs. The emphasis of the project will be on the removal of basic physical and infrastructural constraints through development programmes such as exploitation of groundwater and development of irrigation and drainage facilities. Stress will also be laid on strengthening institutional framework through improvements in land tenure, water use efficiency, credit, marketing, storage and post-harvest handling, timely delivery of inputs and services as well as research for evolving new varieties and appropriate technologies so as to make a tangible impact on rice production and productivity. 1.14 Pulses: Growth in the production and improvement in the productivity of pulses have not been quite satisfactory largely due to factors like high risk and low profitability, small proportion of irrigated area, inadequate use of modern inputs and gaps in technology and extension. The major elements of the strategy envisaged for achieving the Seventh Plan target of pulses production are the following:

a. b. c. d. e.

introduction of pulses in irrigated farming systems; bringing additional area under short-duration varieties of moong and urad in rice fallows in the rabi season and as a summer crop where irrigation facilities are available; inter-cropping of arhar, moong and urad with other crops; multiplication and use of improved seeds; adoption of plant protection measures;

f. g. h. i.

use of fertilizers and rhizobial culture; improved post-harvest technology; remunerative prices relative to competing crops;and marketing support.

To supplement the efforts of the States in increasing the production of pulses, it is proposed to undertake a new Centrally sponsored National Pulses Development Programme. 1.15 Oilseeds; The main constraints in the way of accelerating production are:

a. b. c. d. e. f.

preponderance of rainfed cultivation; inability/hesitation on the part of the farmers to use modern inputs due to high risks for yields and prices; high cost and inadequate availability of certified seeds; susceptibility of oilseeds crops to pests and diseases which cause substantial losses; inadequate use of improved agricultural implements for proper placement of seeds and fertilizers, and problems of price support, particularly in times of bumper production.

1.16 Recent trends of oilseeds production indicate certain encouraging features. Firstly, the area under sunflower has increased five-fold during the Sixth Plan period. Sunflower, which is spreading rapidly in Karnataka and Maharashtra and to a lesser extent in Madhya Pradesh and Gujarat, is drought tolerant and, therefore, farmers find it a low-risk crop under rainfed conditions. Secondly, the area under soyabean is increasing fast in Madhya Pradesh, and the crop is also spreading in some districts of Maharashtra bordering Madhya Pradesh. Thirdly, summer groundnut is becoming popular in many States. These developments indicate that, given a low risk environment which is dictated by the crop variety and agro factors, farmers do take up oilseeds cultivation and apply cash inputs. The research and demonstration efforts should, therefore, focus on identifying the opportunities in the midst of constraints and adopting suitable measures to exploit these opportunities. However, at present, there are many gaps in the research and development efforts in the areas of technology, credit, inputs and irrigation management. The strategy for oilseeds development in the Seventh Plan will, therefore, aim at bridging these gaps. In particular, attention will be given to procuring oilseeds from the farmers at remunerative prices through appropriate agencies. Table 1.4 Projected requirement of cotton-Seventh Plan Item Requirement (million bales) (i) Mill consumption (ii) Extra-factory consumption (iii) Khadi sector (iv) Long staple (v) Superior long staple Total 0.60 3.45 1.75 1.50 2.20 9.50 Table 1.5 Staple-/wise Cotton Production-Seventh Plan

Staple Group (i) Short staple (ii) Medium staple (iii) Superior medium staple (iv) Long staple (v) Superior long staple TOTAL

Target for the Seventh Plan (million bales) 0.60 3.45 1.75 1.50 2.20 9.50

1.17 The demand for edible oils in the country was met mostly by indigenous production supplemented by imports in the last few years of the Sixth Plan. According to the present indications, the gap between demand and supply of edible oils will continue to persist. Keeping in view the trend of production during the Sixth Plan period, the demand for vegetable oils in the Seventh Plan and the scope for expansion of area under oilseeds and increase in their productivity, a target of 18 million tonnes of oilseeds production has been kept for the Seventh Plan. 1.18 To achieve this target, it is proposed to adopt a two-fold strategy, namely, productivity increase through better spread of technology and area increase through measures of inter-cropping, sequence cropping and relay cropping. The National Oilseeds Development Project, initiated in 1984-85, will be continued during the Seventh Plan period as a Centrally Sponsored Scheme. The funds provided under this project will be mainly utilised for (a) filling the gaps in the existing programmes for overcoming the perceived constraints, and (b) intensifying the existing level of services in the selected districts. Operational flexibility will be provided to the State Governments so that they can draw up suitable programme components depending on local situations. This programme will be closely monitored so as to facilitate a critical review of its progressive impact. 1.19 The programmes envisaged under the National Oilseeds Development Project would be supplemented by the State sector programmes. Besides, the State-level Oilseeds Growers' Federations, organised under the National Dairy Development Board's Oilseeds Project, would be strengthened to help in increasing the production of oilseeds. Under this project, assistance in the shape of arrangements for production of inputs, marketing and extension would be provided to the member-growers. In additions, funds available through the cess on vegetable oil collected by the National Oilseed and Vegetable Oils Development Board would also be utilised for promoting vegetable oil production in the country. 1.20 Cotton: Compared to the productivity of 167 kg/ha in 1978-79 which itself was low, the average yield declined further in the subsequent years. The main constraints in the way of cotton production have been: (a) preponderance of rainfed cultivation; (b) inadequacy of quality seeds; (c) high incidence of pests and diseases; and (d) unstable market and low price realisation when farmers market their kapas. 1.21 The requirement of cotton at the end of Seventh Plan (1989-90) is estimated at 9.5 million bales, as indicated in Table 1.4: 1.22 To meet this requirement, the Seventh Plan envisages cotton production to rise from the assumed base of 7.5 million bales in 1984-85 to 9.5 million bales in 1989-90. he staplewise break-up of cotton production will be broadly as shown in Table 1.5.

1.23 Since the scope for area expansion is limited, much of the additional production of cotton in the Seventh Plan will be achieved through increased productivity. The strategy for raising production and productivity of cotton during the Seventh Plan period will consist of the following components:

a. b. c. d.

accelerating the spread of improved technology in both irrigated and rainfed areas, with stress on the use of pure seeds, optimum agronomic practices, integrated pest management, inter-cropping in rainfed area and bringing more area under cotton in rice fallows; expansion of irrigated area in the commands of major and minor irrigation projects; maximising the area under high yielding hybrids of cotton including the new desi-cotton hybrids being developed for the rainfed areas; and provision of adequate facilities for voluntary grading of kapas in selected markets to enable farmers to realise better prices commensurate with the quality.

1.24 There is wide gap between the production and consumption of medium staple and long staple cotton whereas the production of superior long staple cotton is far in excess of the requirements. Appropriate pricing in favour of medium and long staple cotton is called for to correct this imbalance. This should be preferred to the alternative of exporting superior long staple cotton and Importing medium staple cotton. 1.25 Jute and Mesta: The constraints in securing a sustained increase in the production of jute and mesta mainly relate to the inadequacies in respect of availability of improved seeds, retting facilities, credit and research support for specific situations. 1.26 The main strategy for raising production of jute and mesta from the assumed base level of 7.5 million bales in 1984-85 to 9.5 million bales by 1989-90, will consist of the following: TABLE 1.6 Achievements in Sixth Plan and Targets lor Seventh Plan in respect of Horticultural Crops Crop Unit Sixth Plan Target Anticipated achievement in 198485 23.50 34.00 12.50 6000 0:22 Seventh Plan (198590) Target

(i) Fruits (ii) Vegetables (iii) Potatoes (iv) Coconut (v) Cashewnut

Million tonnes

24.40 35.60 12.50

28.00 40.00 16.00 8000 0.32

Million nuts Million tonnes

6750 0.30

1.27 The success of this development strategy will largely depend on the appropriate price policy backed by effective marketing support. It will also be necessary to impart training to the farmers in the grading of fibre. Further, with a view to supplementing the efforts of the State Government, the on-going Centrally Sponsored Scheme for intensive development of jute, mesta and Sann-hemp will be continued on an expanded scale during the Seventh Plan period. was also envisaged to exploit the potential for the export of fresh and processed fruits and vegetables. 1.28 Sugarcane: Productivity of sugarcane has remained stagnant during the last five years. In fact, the record production achieved in 1982-83 was entirely due to area expansion. Since sugarcane crop occupies the field for a long time and requires considerable quanity of water and fertilizer, the aim would be to stabilise its area at a slightly lower level and concentrate on measures for increasing the average yield of cane.

1.29 Production of sugarcane is, to a large extent, influenced by the sugar policy and the price paid for sugarcane by sugar factories. An integrated approach to sugarcane development to meet the requirements of sugar, khandsari and gur is, therefore, quite crucial. Horticulture 1.30 The Sixth Plan aimed at achieving an additional production of 2.5 million tonnes of fruits and 4 million tonnes of vegetables through a well conceived strategy. It

a. b. c. d.

accelerating the use of improved jute/mesta production technology in both irrigated and rainfed areas; larger coverage of jute/mesta under the multiple cropping sequence; timely provision of critical inputs for increasing productivity; and creation of adequate retting facilities in areas where they are deficient, with a view to improving the quality of fibre.

1.31 Estimates of production in respect of various horticultural crops during the Sixth Plan period and targets for the Seventh Plan are given in Table 1.6 1.32 During the Seventh Plan period efforts will be made to integrate horticulture with agriculture in hill areas/ lands, dryland areas and coastal saline areas for diversifying agricultural production and raising incomes in these areas. For this purpose, Research and Development effort as well as services and infrastrctural support for improving the quality of output, post-harvest technology and marketing strategy will be strengthened. Emphasis will also be laid on promoting export of horticultural produce. Plantation Crops 1.33 The targets set for production of plantation crops under the Sixth Plan and their achievements are indicated in Table 1.7. TABLE 1.7 Performance of Plantation CropsSixth Plan Crop Unit (i) Tea (Million kg) Target Achievement (ii) Coffee ('000 tonnes) Target Achievement (iii) Rubber ('000 tonnes) Target Achievement (IV) Cardamom (Tonnes) Target Achievement 4500 4400 4750 4100 5000 2900 5250 1600 5500 3500 163.0 153.1 171.0 152.9 180.0 165.9 185.0 175.3 200.0 187.0 128.7 118.6 135.8 152.1 143.3 132.0 151.2 120.0 160.0 165.0 585 571 610 561 640 565 670 585 705 645 1980-81 1981-82 1982-83 1983-84 1984-85

production during the Seventh Plan period would, therefore, depend on removing these constraints and undertaking necessary support measures. 1.34 The production of tea, coffee and cardamom were adversely affected by the unusually severe and prolonged drought experienced during the years 1981-82 and 1982-83. In the case of coffee and cardamom, though the first drought year of 1981-82 did not witness any significant loss to the crops, the adverse impact of the second prolonged drought in 1982-83 was so severe that it continued to inhibit production even during the third year 1983-84. Rubber plantation, however, registered some increase in production during this period. It is possible that absence of rain over long intervals provided more tapping time to register higher overall production. In regard to cardamom, there was large scale damage reported due to severe drought experienced in major cardamom growing areas of South India. 1.35 The major constraints inhibiting production and productivity of plantation crops are non-availability of suitable areas for extending their cultivation, paucity of irrigation facilities leading to instability in production, particularly in the case of tea, coffee and cardamom, preponderance of low yielding and aged bushes in the case of tea, rubber and cardamom and predominance of small farmers which has a direct bearing on the extent of overall investment in land improvement and infrastructure facilities. Some problems more specific to tea, which affect its productivity are lack of drainage which is particularly acute in North Eastern India and incidence of pests and diseases. It is estimated that about 10 per cent of the potential tea crop is lost due to pests, diseases and weed infestation. The prospects of achieving higher 1.36 The targets of production of plantation crops envisaged for the Seventh Plan are given in Table 1.8: TABLE 1.8 Targets of Plantation CropsSeventh Plan Crop Unit Assumed Plan Base 1984-85 Target 1989-90 645 165 187 3500 766 180 265 6500 Compound growth rate (Per cent) 3.50 1.80 7.23 13.18

(i) (ii) (iii) (iv)

Tea Coffee Rubber

Million Kg. '000 tonnes '000 tonnes

Cardamom Tonnes

The targets set for tea and coffee take into consideration the requirements of domestic consumption and export. The increase in production envisaged in respect of plantation crops during the Seventh Plan period over the anticipated production during 1984-85 range from 19 per cent in the case of tea to 86 per cent in the case of cardamom. 1.37 The strategies proposed for achieving the Seventh Plan targets of plantation crops are briefly indicated below: (a) Tea: The target of 766 million Kgs. is proposed to be achieved by concentrating on measures to improve drainage and creating irrigation facilities as well as by undertaking a large-scale programme for rejuvenation and gap filling of tea bushes. A programme for replantation and new plantation of about 8000 he. per annum, which is twice the Sixth Plan achievement, is also envisaged. A districtwise survey of development potential has been made and suitable areas for extension planting, replanting, etc. have been identified. (b) Coffee: Areas suitable for coffee plantation in non-traditional regions are proposed to be identified, and the Coffee Board would provide research and extension support as also technical assistance to the area expansion programme. The additional area that will be brought under the crop is estimated at

50,000 hectares of which 30,000 hectares will be in non-traditional areas, mainly in Andhra Pradesh, Orissa and North Eastern States, and 20,000 hectares in the traditional areas of Karnataka, Kerala and Tamil Nadu. (c) Rubber. The area under rubber is proposed to be expanded by one lakh hectares of which 61,000 hectares will be in the non-traditional areas. The target of replantation is proposed at a modest level of 35,000 hectares. The main non-traditional areas are located in Tripura, Assam and Orissa. The organisational set-up of the Rubber Board is proposed to be strengthened in the North Eastern Region to achieve this objective. (d) Cardamom: Most of the cardamom bushes are 30 to 40 years old and productivity has stagnated at around 62 kg. per hectare. The crop has also suffered extensive damage as a result of drought in recent years. The Seventh Plan strategy consists of replantation programme covering about 39,000 hectares and development of irrigation facilities to guard against drought conditions. Dryland/Rainfed Farming 1.38 About 70 per cent of the total cultivated area in the country is dryland/rainfed area and a large proportion of the output of important crops such as coarse cereals, pulses, oilseeds and cotton comes from these areas. These areas, however, contribute only 42 per cent of the total foodgrains production in the country. Further, production in these areas is low and fluctuates widely depending on the behaviour of the monsoon. Apart from risk and uncertainly associated with crop production in the dryland areas, concentration of agricultural development efforts mainly on irrigated areas for securing higher production has led to the widening of regional disparities as between dryland areas and irrigated areas. There is also widespread unemployment and under employment in the dryland areas mainly because of monocropping and frequent weather aberrations. Because of the risky nature of cultivation and low incomes, farmers in these areas are unable to invest in and take advantage of the modern technological practices. Also, due to the high risk involved, availability of institutional credit to the dryland farmers is extremely poor. Thus, the dryland/rainfed areas are caught in a vicious circle of high risk, low investment, poor technology and low production. Therefore, in order to achieve steady increase in production of foodgrains, particularly coarse cereals, pulses, oilseeds and cotton and also the national objectives of reduction of poverty, unemployment and regional disparities, the development of dryland/rainfed farming assumes importance and immediate relevance. 1.39 In pursuance of the new 20-Point Programme announced in January 1982, action was initiated for the development of dryland/rainfed farming through the strategy of: (a) intensive approach aimed at integrated development of the selected micro-watersheds; and (b) extensive approach for promoting the adoption of available technologies like use of improved and drought resistant seeds, fertilizers, seed-cumfertilizer drills and other implements, agro-forestry, etc. As a result, work was taken up by the end of 1984-85 in about 4,400 micro-watersheds, covering an area of about 4.2 million hectares. Besides, an area of 12.8 million hectares was estimated to have been covered under the extensive approach in areas outside the watersheds. The major components of watershed development are: (a) land development; (b) construction of water harvesting storage structures; and (c) coverage of area with improved/ drought resistant seeds and fertilizers. 1.40 During the Sixth Plan period, two schemesone for the propagation of water Conservation/Harvesting Technology for Dry Farming Areas (Central Sector Scheme) and the other for the development of Dryland Agriculture through popularisation of seed-cum-fertilizer drills, growing of improved crop varieties, application of fertilizer, etc. were sanctioned for implementation with a Plan allocation of Rs. 10 crores in 1983-84 and 1984-85. These schemes were implemented in 19 selected districts located in 15 States. A World Bank assisted pilot project for watershed Development in Rainfed Areas was also initiated in the States of Karnataka, Andhra Pradesh, Maharashtra and Madhya Pradesh at total cost of Rs. 44.23 crores for a period of 7 years. In each of the States, a total area of about 25,000 to 30,000 hectares was to be brought under comprehensive watershed development with a view to increasing the productivity on a permanent basis through improvement of land and water resources base

and by superimposition of improved production systems. An IDA assisted Kandi Watershed and Area Development Project was taken up in Punjab with effect from April 1980. The main aim of the project was to provide ecological stabilisation of degraded foot-hills, development of agricultural land and control of erosion and floods. This project includes a number of components like soil conservation, irrigation, drainage, horticulture, forestry animal husbandry and fisheries. In addition, with the help of interdepartmental co-operation and functional linkage between the Ministry of Agriculture and Rural Development, ICAR and State Government, detailed projects for 47 model watersheds were developed. Finally, a number of Central and Centrally Sponsored Schemes like Pules, Oilseeds and Cotton Development, National Rural Employment Programmes (NREP), Rual Landless Employment Guarantee Programme (RLEGP), Drought Prone Area Programme (DPAP), Desert Development Programme (DDP) and Small and Marginal Farmers Programme have been under implementation and they benefit the dryland areas also. However, these programmes function in isolation and an integrated approach on area development basis could have created a much better impact. 1.41 Thus, a number of initiatives and Programmes have been undertaken during the Sixth Plan period for the promotion of dryland farming. There is a growing awareness about the need to draw up comprehensive programmes. Financial institutions like NABARD and AFC are also keen in preparing and financing suitable dryland development projects. 1.42 In the Seventh Plan, high priority is envisaged for the development of dryland/rainfed farming with a view to raising productivity and achieving the other important objectives of reduction in poverty, unemployment and regional disparities. The main focus of development strategy is to minimise the risk to the farmers and to provide them with area-specific technolgical packages, inputs and services. Emphasis will be on area development approach, taking watershed as a unit of development. The development measures to be undertaken in the micro watersheds would include soil and moisture conservation, land shaping, bunding, construction of water harvesting and drainage structures, increased use of improved drought resistant seeds, chemical fertilizer and improved implements like seed-cum-fertilizer drills as also adoption of carefully worked out cropping patterns. Efforts would be concentrated on non-water intensive crops, e.g. coarse cereals, pulses, oilseeds and chillies and also on greater farm management efficiency through attention to cash and non-cash inputs. Closer attention would be given to develop an efficient delivery system for the supply of inputs as well as efficient use of fertilisers. Further in order to provide adequate tree cover and promote subsidiary occupations, horticulture, afforestation and pasture development would be an important part of the dryland farming programme. 1.43 It is proposed to take up a National Dryland/ Rainfed Farming Project as a Centrally sponsored scheme in the Seventh Plan to supplement the State efforts. The components of the National Programme would include land development, rain water management, provision for the design and development of farm implements and machinery, afforestation and pastures development, organisational support and manpower development as well as infrastructural support. 1.44 For the successful implementation of the national and the State programmes as well as projects that are likely to be funded by institutional agencies like NABARD and AFC, it is necessary to ensure the following:

a. b. c. d. e. f.

stepping up to R & D efforts to evolve specific, cost effective and low cost technologies; strengthening of the extension services; training and development of field manpower; efficient delivery system for timely supply of inputs including contingency seeds stocking; adequate availability of short-term loans to farmers whenever the watershed is developed so as to enable them to adopt a higher level of farming technology; provision of adequate price and marketing support to rainfed crops like coarse creals, pulses and oilseeds;

g. h.

suitable organisational structure of planning, implementation and monitoring of the watershed management programmes; and integration of various Central/Centrally Sponsored and State programmes to optimise the resource use.

Soil and Water Conservation 1.45 Till 1979-80, an area of about 23.40 million hectares was treated by various soil conservation measures. Against the Sixth Plan target of covering additional 7 million hectares under soil and water conservation measures, the achievement is about 6 million hectares. Thus, by the end of Sixth Plan period, the area treated under soil water conservation measures aggregates to about 29.4 million hectares. Also, organisational capabilities have been created and strengthened; particular mention may be made of the State Land Use Boards, National Land Resources Conservation and Development Commission and National Land Use Board. 1.46 The Centrally Sponsored Scheme of soil conservation in the catchments of River Valley Projects, intitiated in the Third Plan, at present covers 27 catchments in 17 States. Another Centrally Sponsored Scheme of Integrated Watershed Management in the catchments of flood prone rivers, taken up during the Sixth Plan period, covers 200 watersheds in 8 catchments in the Indo-Gangetic basin. 1.47 The Seventh Plan aims at intesifying the soil and water conservation programmes with a view to checking soil erosion and land degradation as also enhancing the productivity of available land. To supplement the efforts of the States, the Centrally Sponsored Scheme of soil conservation in the catchments of river valley projects and Integrated Water Management in the catchments of 8 flood prone rivers in the Indo-Gangetic basin will be continued and intensified during the Seventh Plan period. 1.48 Emphasis will be laid on proper maintenance of the works completed. Although 14 States and 2 Union Territories have enacted Soil Conservation Acts, the legislation has no provision to secure people's participation for effective maintenance of the soil conservation works and utilisation of the assets created. They also do not have provisions to prevent diversion of good agricultural land for other purposes. Steps will have to be taken to remove these lacunae in the existing legislation. 1.49 Closer attention will be given to continuous monitoring of the programmes during implementation for assessing their progress as also their effectiveness. Steps will be taken to ensure effective functioning of the various Organisations and Boards already set up for proper planning, implementation and monitoring of the soil conservation programme. It is also necessary to provide appropriate institutional framework with a view to forging close linkage among the various line Departments concerned with soil health and land use. Land Reclamation and Development 1.50 About 80 million hectares out of the total net cultivated area of 140 million hectares is estimated to be suffering from varying degrees of soil degradation. The main difficulties in the way of progress in containing the degradation of land resources and bringing them back to productive uses relate to the following:

a. b. c. d.

management of community lands; lack of infrastructural development; high investment and long gestation; and non-availability of institutional finance due to low credit worthiness of the beneficieries having marginal and sub-marginal lands.

1.51 According to present indications possibilities exist, for reclamation and development of about 40 million hectares of saline alkaline, ravine and coastal sandly areas as also culturable waste land and old fallows other then current fallows. This is gigantic task which would need suitable technological practices, trained manpower, organisational capabilities and funds from various sources including beneficiaries. The Seventh Plan attaches high priority to land stock improvement covering reclamation and development of these problem areas. This would involve concerted efforts by the ICAR and State Agricultural Universities, State Land Use Boards and other organisations both at the State and the Centre. Suitable programmes for each type of degraded land will have to be formulated on the basis of systematic surveys. It is proposed to take up these programmes during the Seventh Plan period under the Central/Centrally Sponsored Sector, subject to their technical feasibility, availability of resources and the state of preparedness on the part of the State Governments. Scheme for Assistance to Small and Marginal Farmers for increasing Agricultural Production 1.52 Economic development through increased agricultural production on the lands of small and marginal farmers is of cardinal importance for bringing prosperity to the farming community in the country. Small and marginal farmers with holdings of lands upto 2 hectares represent about 73 per cent of the land holdings but are cultivating only about 23 per cent of the cropped area. Their yields are low and land is of very poor quality. The number of persons which each hectare of their holdings has to sustain is 4 to 5 times more than the number of dependant persons per hectare of land by the big farmers. There is, therefore, great need to raise considerably the crop yield of small and marginal farmers. 1.53 The erstwhile Small Farmers Development Agency Scheme (SFDA) was replaced in the Sixth Plan by the Integrated Rural Development Programme (IRDP) with emphasis on assisting 600 poorest families in each block per annum. Although a provision for assistance to small and marginal farmers exists under the IRDP, it is not commensurate with the needs of such farmers because IRDP is basically oriented to the poorest of the poor, most of whom do not operate any land. In view of the need for a separate agricultural project to enable small and marginal farmers to take to new technology for increasing agricultural production, a Centrally Sponsored Scheme for assisting the small and marginal farmers for increasing agricultural production was sanctioned on 50:50 basis for all the blocks in the country during 1983-84. The scheme envisaged an outlay of Rs. 5 lakhs per block in all the States and the Union Territories for enabling the small and marginal farmers to invest in minor irrigation, take up land development works, plant fuel and fruit trees in their lands and increase production of oilseeds and puleses through the use of minikits of seeds and fertilisers. 1.54 The outlay of Rs. 5 lakhs per block was visualised with the following break-up; Item (i) (ii) (iii) minor irrigation (subsidy to the extent of 50% on the IRD pattern) planting of fuel and fruit trees (subsidy to the extent of 50% on the IRD pattern) free distribution of minikits of seeds and fertilisers for oilseeds and pulses production, inputs, and development and staff (lumpsum allocation) Total outlays (Rs.lakhs) 3.50 0.50 1.00

5.00

The State Governments were given the flexibility to divert funds from one component to another within block but it was made clear that the outlay of Rs. 5 lakhs per block should not be changed and the component-wise proportion of investment, 7:1:2 between minor irrigation, tree planting, minikits and land development including staff should be retained at the district level. 1.55 On a further review of the scheme, it has been decided that if some States, inspite of the abovementioned flexibility are unable to invest Rs. 5 lakhs in every block on the approved components or maintain inter-sectoral ratio of expenditure for the district as a whole, they could make a specific proposal, under the Seventh Plan, to the Government of India for necessary relaxation in the ratio and such relaxation will be allowed in exceptional cases after due consideration on the basis of merits. 1.56. In regard to individual components of the scheme, the Government of India have liberalised the pattern of financing. The present ceilings of Rs. 3000 for small farmers, Rs. 4000 for marginal farmers and Rs. 5000 for tribal farmers on the amount of subsidy for minor irrigation works have been removed and instead, the amount of subsidy payable to an individual beneficiary would be at the rate of 25, 33V3 and 50 per cent, respectively taking the unit cost of minor irrigation works as fixed by the NABARD for the different agro-climatic regions in the country. The community irrigation projects will be undertaken in areas where more than 50 per cent of the land holders in the ayacut are small and marginal farmers and they own not less than 25 per cent of the land. These projects will be taken up from the Government funds, with 50 per cent assistance from the centre. The minikit programme under the scheme would include only improved seeds of pulses oilseeds and coarse grains. In other words, the minikits would not include fertilisers as at present. These minikits will be distributed against a nominal charge from the year 1976-77 onwards. With these measures recently taken by the Government of India, it is hoped that the scheme would become more effective in its implementation during the Seventh Plan period. Inputs and Services 1.57 Targets: Apart from material inputs, namely, fertilisers and manures, seeds, plant protection chemicals and improved implements and machinery, a variety of services like extension, credit, insurance, storage, marketing and processing play an important role in increasing agricultural production. The targets of key inputs contemplated in the Seventh Plan are indicated in Table 1.9. The measures that are proposed to be taken to increase availability of these inputs and services and to improve the delivery system are discussed in the following paragraphs. 1.58 Fertilisers and manures: A target of 9.60 million tonnes of fertilisers in terms of nutrients was originally envisaged for the Sixth Plan. This was later on revised to 8.4 million tonnes which is reported to have been achieved by the end of 1984-85. It consists of 5.6 million tonnes of N, 1.9 million tonnes of P. and 0.9 million tonnes of K A number of steps were taken to accelerate the consumption of fertilisers during the Sixth Plan period. These included block level delivery of fertilisers the cost being borne by the Central Government, reduction of fertilisers prices, upward revision of distribution margins and adequate arrangement for the grant of short-term loans. In addition, the number of sale points was increased from 110 thousand in 1980-81 to 147 thousand by 1984-85. A scheme for assisting small and marginal farmers was introduced in the latter part of the Sixth Plan period and phosphatic fertiliser was supplied in minikits. To implement fertiliser promotion and development programmes, arrangements for unloading and storage of fertilisers and supply of imported fertilisers were strengthened. 1.59 It is worth noting that the eastern States with deficient water control (flooding) in kharif, little irrigation for rabi cultivation and undeveloped infrastructure in the form of roads, electricity and credit facilities show very low utilisation of fertilisers. Efforts are afoot to improve the infrastructure and take up a package of measures to increase the consumption of fertilisers in the northeastern region. 1.60 The target of fertiliser consumption contemplated for Seventh Plan is in the range of 13.5-14.0 million tonnes of nutrients. State wise breakup of this target is given in Annexure 3. To achieve this target, the strategy would consist of strengthening of fertiliser distribution and handling arrangements at ports,

undertaking enforcement of quality control by increasing the number of samples to be tested and promoting measures necessary for the efficient use of fertiliser. One of the major goals will be to increase fertiliser consumption in rainfed areas. 1.61 A substantial increase in handling facilities will be provided both at the major and minor ports by way of mechanical unloading, conveyor belts for carrying the materials, bulk storage of 25,000 to 30,000 tonnes capacity, mechanised, bagging arrangements, storage for bagged materials as well as facilities for loading of materials for transportation both by rail and road. It would also be necessary to increase the infrastructure facilities at some of the minor ports for providing barges, tugs, warehouses, etc. With a large volume of fertiliser movement by rail, it is essential that facilities for unloading the materials at the terminal points are increased. For this purpose, a project for development of nodal facilities for handling of fertilisers will be taken up. This apart, the TABLE 1.9 Targets of Key InputsSeventh Plan Item 1 i. 2 Seeds (i) Certified (ii) Foundation (iii) Breeder II. Fertiliser Consumption (i) Nitrogenous (N) (ii) Phosphatic(P) (iii) Potassic (K) Total N+P+K III. Pesticides (Technical grade material) IV. HYV Programme (i) Paddy (ii) Wheat (iii) Jowar (iv) Bajra (v) Maize Total HYV V. Gross Cropped Area VI. Irrigation (i) Minor Irrigation (a) Potential (b) Utilisation (ii) Major and Medium (a) Potential (b) Utilisation Million hectares Million hectares 30.49 25.32 34.79 29.22 Million hectares Million hectares 37.40 35.15 46.00 42.15 Million hectares Million hectares Million hectares Million Hectares Million hectares Million hectares 25.00 19.00 5.00 5.00 2.00 56.00 180.00 32.00 22.00 6.50 6.50 3.00 70.00 190.00 '000 tonnes Million tonnes Million tonnes Millions tonnes 5.64 1.87 0.86 8.37 50.00 9.10-9.30 3.00-3.20 1.40-1.50 13.50-14.00 75.00 Million quintals Million quintals Million quintals 7.04* 0.45 0.03 11.74* 0.60 0.10 Unit 3 Assumed Base Level 1984-85 4 Plan Target 1989-90 5

Total (i)+(ii) Potential Utilisation Million hectares Million hectares 67.89 60.47 80.79 71.37

This includes both certified seeds (an estimated 3.0 million quintals) and quality seeds (the balance of 4.04 million quintals) of all crops. This stands, for only certified seeds of all crops except oilseeds, pulses and potatoes, This also includes provision for export and buffer stock. promotional efforts for accelerating consumption of fertilisers specially in the remote areas, reducing regional disparity in fertiliser consumption and ensuring that this input gets within the easy reach of the farmer by opening more sale points in different areas, will be continued. Extension support for guiding the farmers in the proper use of fertilisers has proved to be quite useful. Steps are required to be taken to intesify this effort. Also soil testing facilities need to be intensified. Future growth in fertiliser consumption will depend on a number of factors and especially the extent to which the technology is developed and extended, investment in irrigation is stepped up and credit situation is improved. If the logistical problems in the eastern region are attended to, continued growth in fertiliser consumption in that region could be ensured apart from an occasional set-back due to drought. A special project to increase the fertiliser consumption in rainfed areas in conjunction with the National Dryland Farming Project will be taken up during Seventh Plan period. 1.62 In addition, attention has to be given, in an increasing measure, to the conservation and use of organic wastes and biological wastes for nitrogen fixation and supply. Bio-fertiliser programme involving the popularisation of rhizobium, blue-green algae, azolla and other sources will receive further attention. Adequate outlays will be provided for implementing new programmes contemplated above. 1.63 Seeds: The area under high yielding varieties has reached the level of 56 million hectares in 198485 against 38.4 million hectares in 1979-80. Table 1.10 indicates the progress of distribution/production of breeder, foundation and certified seeds during the Sixth Plan period. TABLE 1.10 Progress of improved seeds-Sixth Plan Item (i) (ii) (iii) Breeder seeds Foundation seeds Certified/quality seeds Unit Quintals Quintals Quintals Target for Sixth Plan Estimated achievement 1980-85 (1984-85) 1,200 2,99,000 54,02,000 30,000 4,50,000 70,44,000

1.64 In the Sixth Plan it was proposed to have a replacement rate of 10 per cent for the self-pollinated crops like wheat and paddy, 100 per cent for hybrids and 5 per cent for pulses and oilseeds. Experience has shown that replacement rates of seeds differ from State to State. In States like Madhya Pradesh, they are very much low. This is attributed to a number of reasons, the more important being lack of extension effort in popularising certified seeds, high sale price of the seeds and nonavailability of foundation and breeder seeds for some of the crops, especially potato and groundnut. Higher replacement rates in some of the States like Assam, Manipur and Tripura (where they vary from 32 to 70 per cent) are due to the fact that it is not possible for the farmers of these States to have their own seeds because of the agro-climatic conditions. 1.65 Having regard to the present position, it is proposed to have an overall replacement rate of certified seeds at 10 per cent for the country during the Seventh Plan period. A target of 11.7 million quintals of certified/ quality seeds is contemplated for the Seventh Plan. Encouragement will be given to the private sector in seed production.

1.66 Adequate provisions have already been made in different Acts and Orders for ensuring the right quality of seeds. There is, however, no effective enforcement by the agencies concerned. Necessary steps are required to be taken to strengthen these agencies and increase the number of samples to be tested. In addition, seed testing laboratories have to be strengthened by way of manpower, equipment, training arrangement and organisational set up. Further the risk hazards of seed production are the same as in the case of other agricultural commodities. There are also instances of damage to seed crops due to adverse weather conditions. For ensuring adequate supply of seeds, seed producer should be covered under the Crop Insurance Scheme especially in the dry farming areas. This would prove to be an incentive for the farmers to produce more seeds. In less developed areas of Madhya Pradesh, Rajasthan, Bihar and eastern Uttar Pradesh, high cost of seeds has been a major problem being faced by farmers. In the absence of certified seeds, full advantage of other inputs like fertilisers and irrigation is not being taken. This requires priority of attention and a subsidy on certified seeds may be given. 1.67 There are a number of on-going programmes like setting up of seed processing plants, development of seed farms, strengthening of seed testing laboratories and creation of additional storage capacity. These would continue to receive attention during the Seventh Plan period. Also, for meeting the emergent needs of seeds in different States the programmes for building up buffer stocks of seeds by the National Seeds Corporation and reserve stocks of seeds by the State Governments would be taken up on a larger scale. 1.68 Plant protection: While seeds and fertilisers are the basic inputs to increase agricultural production, plant protection measures are required to save the crops in the field from the ravages of pests and diseases. However, the use of pesticides has to be judicious and need-based. The thrust in the Seventh Plan, will therefore, be the need-based use of plant protection measures instead of prophylactic treatment. The use of pesticides is undertaken when the pest population increases beyond the economic threshold level. Vigorous control of pests and diseases in endemic areas would, however, be continued as at present. Steps will be taken to strengthen the surveillance organisations. Aerial spraying of pesticides would be taken up in an increasing measure for meeting the pest and disease attack on crops like oilseeds, cotton, etc. More Central Biological Control Stations and Central Surveillance Stations are proposed to be set up during the Seventh Plan Period. The major thrust of Government policy on plant protection in the coming years will be the Integrated Pest Management (IPM). The IPM approach implies the adoption of cultural, mechanical, biological and chemical methods of control. 1.69 Arrangements for the collection of data on the consumption of pesticides in the fields are not adequate and hence reliable estimates of pesticides consumption for agricultural crops are not available. A target of 75,000 tonnes of pesticides is contemplated for the Seventh Plan. This is against the Sixth Plan achievement of about 50,000 tonnes vis-a-vis the target of 80,000 tonnes of pesticides. Achievement of this target would call for vigorous efforts and close monitoring on the part of different agencies in different States and Union Territories. 1.70 Agricultural implements and machinery: A special drive for popularising improved implements is required in areas where inadequacy of farm power is the major constraint in raising agricultural production. The Central Sector Scheme for strengthening the existing farm machinery training and testing Institutes at Budni, Hissar and Anantpur would be continued. Besides, two new farm machinery training and testing institutes are proposed to be set up in the western and eastern regions during the Seventh Plan period. 1.71 Agro-Industries Corporations have been set up in most of the States. These Corporations will have to play a greater role in the large-scale manufacture of improved agricultural implements and their distribution. Having regard to their past performance, the need for proper monitoring of their activities is stressed. 1.72 Another important scheme started during the Sixth Plan period is the setting up of Farmers' Agro Service Centres Work on this scheme will be intensified in another 2000 blocks during the Seventh Plan.

Here too, suitable arrangements for monitoring the scheme will have to be made by the State Governments. 1.73 Agriculture Extension: The Sixth Plan laid special emphasis on strengthening extension machinery to carry out the programmes of transfer of technology and train the farmers to improve their skills. In this context, reorganisation of the agricultural extension service under the Training and Visit System (T&V) was taken up in 13 States during the Sixth Plan period. 1.74 Despite initial difficulties the T&V system has made considerable contribution in relation to introduction of new crops in non-traditional areas, new crop rotations and increasing the intensity of cropping. The large increase in the area under soyabean in Madhya Pradesh, the increase in the area under sunflower in Karnataka and Maharashtra, the step-up in the yield of wheat, groundnut, cotton and mustard in Rajasthan, the diversion of marginal paddy lands to oilseeds and pulses in Orissa, the introduction of rice in non-traditional areas and the popularisation of summer moong cultivation between the kharif and rabi seasons in certain areas have been a few notable results of the extension effort. Under the T&V system attention was given to improve the educational and technical competence of the extension functionaries and also to bring about close linkage between Agricultural Universities, Extension Wings of the the State Agricultural Departments and the farming community. Steps were taken to undertake training of women and the weaker sections, including Scheduled Castes and Scheduled Tribes. Tours were arranged for farmers from agriculturally less developed areas to developed areas so that they would acquire practical knowledge regarding improved aricultural practices. 1.75 A new project caled the National Agricultural Extension Project (NAEP) was taken up with World Bank assistance in September, 1984. It has three components; (i) the State component covering the States of Orissa, Madhya Pradesh and Rajasthan where the ongoing extension projects have already been completed and the second phase is to be introduced, (ii) the Central Sector Project for strengthening the Directorate of Extension, Extension Educational Institutes and the setting up of a National Institute of Extension, and (iii) the Centrally Sponsored component consisting of special sub-projects to bridge the gaps and rectify weaknesses in the ongoing projects. The second phase of NAEP covering the States of Gujarat, Haryana, Karnataka and Jammu and Kashmir has been negotiated with the World Bank and the project has already become operative. 1.76 Having regard to the past perpormance, it is crucial that all possible steps are taken to streamline and strengthen the extension service during the Seventh Plan period. In this context the following aspects should receive special attention:

a. b. c. d.

Coordination between T&V system and supply of inputs and related services; linkage between the Research Institutions, Agricultural Universities and Extension set-up in different States; need for orienting extension programme to specific conditions; and strengthening of operational functionaries by equipping them with adequate professional skills and exposing them through actual field visits and suitable incentives and recognition.

1.77 Agricultural credit: Cooperatives, Commercial Banks and Regional Rural Banks are the three main institutional agencies in the field of credit for agriculture and allied sectors. The cooperatives with their countrywide net work of 94089 primary agricultural credit societies constitute the most important agency in terms of volume of loans advanced and territorial coverage. Commerical Banks have over 36000 semiurban and rural branches and the Regional Rural Banks number 182 with 8727 branches as on March 31, 1985. The Sixth Five Year Plan had aimed to increase the disbursement of agricultural credit through these institutional agencies from the base level of Rs. 2550 crores in 1979-80 to Rs. 5415 crores by 1984-85. Against this, the level of disbursement of credit in 1984-85 is reported to be Rs. 5810 crores. The agency-wise break-up is given in Table 1.11.

1.78 Thus, the targets laid down in the Sixth Plan for Co-operative Credit have been more or less accomplished. The disbursement of credit by commercial banks has exceeded the Plan target since they were asked to increase the flow of credit for the agricultural sector. The increasing role of commercial banks in providing credit for poverty alleviation programmes, like IRDP is also responsible for these increased figures. TABLE 1.11 Progress of disbursement of creditSixth Plan (Rs. crores) Programme Sixth Plan Base Level 1979-80 Cooperatives (i) short-term loans (ii) medium-term loans (iii) long-erm loans II. Commercial Banks (including Regional Rural Banks) (i) short-term loans (ii) term loans Total l+ll 450 400 2550 1500 620 5415 1110 1450 5810 1300 125 275 2500 240 555 2500 250 500 Target 1984-85 Anticipated Achievement 1984-85

1.79 Although there has been an appreciable increase in the flow of credit from the institutional agencies there is no perceptible improvement in the recovery of loans. During the year 1982-83, the latest year for which data are available, ratio of overdues to demand at the level of primary agricultural credit societies as well as the level of primary land development banks was reported to be 40 to 42 per cent. The recovery position in the case of commercial banks has been even worse and the proportion of overdues to demand in their case stood at 47 per cent in 1982-83. Even the regional rural banks, which entered the field of credit last of all had overdues mounting to 49.6 per cent. The health of agricultural credit institutions, both: cooperative and commercial banks, is in a very sad state in several parts of the country. Wilful default and overdues are mounting in a number of States including some cooperatively progressive States like Maharashtra and Gujarat. By writing off agricultural loans and providing subsidies out of the States exchequer some of the States have set a bad example to the entire country. If this trend is not reversed and if banks are reduced to institutions providing grants rather than recycling scarce resources to get the maximum benefits for the country as a whole, the banking system will be unable to provide more credit to meet the growing needs of farmers. Further, the implication of present trends is that even if the fertiliser prices are reduced, banks and cooperatives may not be able to increase their lending because of mounting overdues. The Ministry or Agriculture and Rural Development and State Cooperation Departments, should, therefore, adopt effective measures to restore the cooperative movement to robust health so that they can play an effective role in providing credit to farmers on an increasing scale. 1.80 An important development in the field of agricultural credit during the Sixth Plan period was the establishment of the National Bank for Agriculture and Rural Development (NABARD) in July, 1982. NABARD has emerged as an apex national institution accredited with all matters concerning policy, planning and operation in the field of credit for agriculture and other economic activities in rural areas. It has so far been following policies, procedures and practices inherited from the Reserve Bank of India. It has laid greater emphasis on agricultural credit and, as a result, its business has gone up from the level of Rs. 703 crores in 1982-83 to Rs. 1056 crores in 1984-85. The drawal of funds from NABARD by RRBs has significantly gone up. NABARD also provided substantial refinance for IRDP. For effecting necessary

improvements in the lending for poverty alleviation programmes, field studies are also conducted by NABARD. It is, however, yet to adopt an innovative approach in keeping with its function as an apex development bank of the country. 1.81 A major policy objective in the sphere of agricultural credit during the Seventh Plan period would be to ensure a substantial increase in the flow of credit, particularly for weaker sections of the population, for the less developed areas especially the north eastern region, for dryland farming and for pulses and oilseeds development. Also, special measures for improving the recovery performance of loans advanced would be taken. Finally, attention would be given to credit planning and monitoring in a coordinated manner at the National, State and District levels. 1.82 These objectives can be achieved only if adequate measures are taken to strengthen the operational efficency, in terms of manpower, financial resources and procedural formalities, of the lending institutions, particularly the cooperative institutions. Primary agricultural credit societies would be coverted into multipurpose cooperatives in a phased manner so as to enable them to handle not only credit but also all other services and supplies. Similarly, Central Cooperative Banks, State Cooperative Banks and Land Development Banks would be strengthened on the lines recommended by the CRAFICARD Report. Arrangements would be made to realise the concept of 'one window approach' for assistance to farmers, particularly belonging to the weaker sections. It is worth noting that the flow of agricultural credit has so far been confined to the irrigated areas particularly for the cultivation of paddy and wheat crops. In the Seventh Plan however, there would be major emphasis on dryland farming and cultivation of pulses and oilseeds. Hence, steps would be taken to ensure massive credit support for these programmes also during the Seventh Plan period. Table 1.12 gives the targets of agricultural credit by different institutions visualised for the Seventh Plan period. TABLE 1.12 Targets of Agricultural Credit by Different InstitutionsSeventh Plan (Rs. crores) Anticipated Agency (i) Short-term loans (ii) Medium-term loan; (iii) Long-term loans (i) Short-term loans (ii) Term loans Total l+ll Anticipated Advances in 1984-85 2500 250 500 1110 1450 5810 Level to be reached by the year 1989-90 5540 500 1030 2500 3000 12570

ii.Commercial Banks (including Regional Rural Banks)

1.83 To oversee the working and coordinate the operations of various institutional credit agencies, State level Co-ordination Committees have already been set up. However, these Committees have not been able to bring about the necessary coordination in the operations of the various institutional agencies. As a result, the commercial banks' credit has tended of flow largely to those areas where cooperative structure is already strong. This snag in the working of the institutional credit agencies would be rectified during the Seventh Plan period through the formulation of district credit plans, which are expected to bring about the necessary coordination and specifically approtion the special roles and responsibilities to the various credit institutions operating in the area.

8th Five Year Plan (Vol-2)

AGRICULTURE AND ALLIED ACTIVITIES
1.1.1 Agriculture and allied activities constitute the single largest contributor to the Gross Domestic Product (GDP), accounting for almost 33% of the total. They, are vital to the national well-being as, besides providing the basic needs of the society and the raw materials for some of the important segments of Indian industry, they provide livelihood for almost two thirds of the work force. The share of the agricultural products in the total export earnings, both in primary and processed forms, is very significant. 1.1.2 Over the last four decades, agriculture has made important strides in our country. It has been able to meet the growing demand of the increasing population for their essentialtion but also acceleration of agricultural production gains are critical for meeting the increasing demands due to the increase in population as well as due to Improvements in incomes, particularly of the poor sections of the society. At the same time, it is necessary to ensure that the process of development is sustainable. Seventh Plan Performance Review 1.2.1 Agriculture and allied sector outlays in the Plan, including forestry and wildlife, increased from Rs. 238 crores in the First Plan to Rs. 10,524 crores in the Seventh Plan. The share of this sector in the total outlay has fluctuated between 5.7% in the Second Plan and 12.9% in the Fourth Plan. Table-1.1 below brings out the fluctuations clearly: Table 1.1 Public Sector Outlay for Agriculture Sector - All India (Rs. in crores) Five Year Plans Agriculture including cooperation All Sector 1st 2nd 3rd 4th 1969- 5th 1974- 6th 1980- 7th 19851951-56 1956-61 1961-66 74 79 85 90 238 275 591 2059 3356 6440 10524 'Annual 1990-91 3803

2377

4800

8099

15902

39322

97500

180000

64717

Source : Agricultural Statistics at a Glanace, March 1991 Directorate ofE & S , Ministry Of Agriculture.need, namely food. The production of food-grains increased from 51 million tonnes in 1950-51 to 176.22 million tonnes in 1990-91. This has enabled the country to be, by and large, self-sufficient and to increase the per capita availability of foodgrains albeit slowly, from about 395 gm per diem in 1951 to 475 gm in 1990. 1.1.3 The population which as per 1991 census was about 844 million, has been increasing, though with a slightly lower growth rate and is expected to cross the billion mark in the early years of the next decade. Not only consolida1.2.2 Foodgrains: The average level of annual production of foodgrains during the Seventh Plan was around 155 million tonnes compared to about 138 million tonnes in the Sixth Plan. The performance of crop production during the Seventh Plan is reflected in Annex -ure-1. In the first three years of the Plan, unfavourable weather conditions prevailed. In fact, in 1987-88 the country witnessed a very severe drought with the foodgrain production plum-meting to 140.35 million tonnes. With favourable weather conditions, the country reacned a level of 169.92 and 171.04 million tonnes during 1988-89 and 1989-90

respectively and, infact, achieved 176.22 million tonnes in 1990-91. The weather in 1991-92 turned out to be indifferent and the food production is unlikely to touch the targetted level of 182.5 million tonnes. The foodgrains production performance indicates that the bulk of the increases has been coming essentially from improvement in productivity. Another salient feature of the performance has been that a much greater resilience has been achieved on the foodgrains production front. This is evident from the fact that the fall in the production level in the severe drought year of 1987-88 has not been as sharp as compared to the drop in production in the earlier drought years. Production of rice and wheat has been much better than coarse cereals and pulses. In the case of rice, the productivity level has reached over 1750 kgs/ha. Another redeeming feature has been that the contribution of the States in the Eastern region has improved during the Seventh Plan, indicating that the special thrust on rice production in Eastern India has, to a degree, helped to improve the rice yields and consequently the production. Nevertheless, the yield levels in many of the Eastern States continue to be. below the national avera^. Wheat production has also been steadily going up and the trend has been maintained during the Seventh Plan. Wheat yield has increased to 2244 kg/ha, in 1988-89. The special Foodgrain Production Programme (SFPP) was launched in 1988-89, following the severe drought of 1987-88. The ^Special Rice Production Programme (SRPP) launched in Sixth Plan for Eastern India was merged with the Integrated Programme for Rice Development (IPRD). The thrust was essentially on not only improving the productivity in areas where the yield levels were low, but also on maximising production even in high potential areas. Later, the SFPP was extended to cover other principal cereal crops such as maize, jawar, bajra and ragi. These programmes, with emphasis on spread of improved technology, efficient delivery of inputs such as seeds, fertilizers, pesticides and popularisation of improved agricultural equipments contributed in some measure to improved production during 1988-89 and thereafter. The production of coarse cereals peaked to a level of 34.76 million tonnes during 1989-90, despite the area remaining almost stagnant at a level of around 38 million hectares. Increases have been primarily due to improvement in productivity. Nevertheless, the current low levels of yield of coarse cereals is a matter of major concern. 1.2.3 Pulses: Pulses are essentially grown under rainfed conditions and hence the production is widely influenced by the rainfall pattern. The production of pulses reached a record level of 14.06 million tonnes in 1990-91. This has been partly due to the increase in area of tur (Arhar). However, the productivity of pulses especially tur of about 779 kg/ha and gram of 753 kg/ha can be substantially improved. Major efforts were made to intensify pulse production by taking up the National Pulses Development Programme and the Special Foodgrain Production Programme - Pulses. It was also decided to bring pulses under the Technology Mission during 1990-91. 1.2.4 Oilseeds: Production of oilseeds has shown substantial improvement during the Seventh Plan when it reached the level of 18.03 million tonnes in respect of principal oilseeds in 1988-89 and further increased to 18.46 million tonnes during 1990-91. The Technology Mission on Oilseeds was launched in 1986 with the objective of attaining self-sufficiency in edible oils. Apart from generation of appropriate technologies for maximising the oilseed production and their extension to farmers, the Mission also focussed on ensuring reasonable price to the producers through improved marketing as well as improving the processing technologies. The National Dairy Development Board (NDDB) was designated as the marketing agency for procurement, bufferstock operations and distribution of edible oil. An integrated oilseeds policy was adopted in 1989 to support the farmers with technology, inputs and remunerative price for their produce. This has resulted in significant increases in the area, production and yields of rapeseed, soyabean and sunflower. In many States, groundnut cultivation in the summer has been popularised. The area under coconut has shown steady increase and the production reached a level of 9283 million nuts. Red oilpalm, with its high oil content has been identified as a major potential source for the supply of edible oil in the country. The, oil palm development scheme, implemented Wider the horticulture programme has been brought under ambit of the Technology Mission on Oil seeds. The Department of Bio-technology and the ICAR have undertaken demonstration projects in Andhra Pradesh, Karnataka and Ma-harashtra. 1.2.5 Sugarcane: The sugarcane production has exceeded the target in the last three years of the Seventh Plan. Increased prices, over and above the statutary minimum price Offered by the State Governments, have contributed to the expansion of the area under sugarcane production. A number of

sugar factories has been established in both the traditional and non-traditional areas. Sugarcane development was undertaken by the sugar mills with the help of loans provided under the Sugarcane Development Fund, administered by the Ministry of Food. The production of cane reached a record level of over 240 million tonnes in 1990-91. 1.2.6 Cotton: In the Seventh Plan, the average production of cotton was 8.43 million bales with a peak production of 11.42 million bales, achieved during 1989-90 against a target of 10 million bales. The marketing prospects of cotton has significantly improved due .to sustained export. The Centrally Sponsored Scheme of Intensive Cotton Development Programme was implemented during the Seventh Plan to improve the productivity of cotton in the major cotton growing states. 1.2.7 Jute and Mesta: The average production of jute and mesta in the Seventh Plan was 8.8 million bales. Inadequate availability of i'm-proved seeds and retting facilities are the main constraints to increasing the production of quality jute and mesta. Development of jute and mesta during the Seventh Plan was undertaken through a Special Jute Development Programme, funded by the Ministry of Textiles. Use of natural fibre as the packing material is on the revival trail and diverse jute products are now exported. The minimum support price policy to the farmers and the role of Jute Corporation of India (JCI) need to be reviewed for their effective operation. Horticulture crops 1.3.1 A wide diversity of climate and soils provide conducive environment for growing a range of horticultural crops with great scope for employment generation. Presently, horticulture crops are grown in 12 million ha. (i.e.7% of totalcropped area of the country), of which 2% is under vegetables. The production in horticulture sector is estimated at 100 million tonnes per annum, contributing to over 18% of the gross agricultural output in the country. India is the third largest producer of fruits after Brazil and U.S.A. In respect of vegetables, India is only next to China. 1.3.2 Mango, Banana, Citrus, Guavaand Apple account for about 75-80% of production. Against the target of 28 million tonnes, fruit production has reached a level of approximately 26.08 million tonnes, with estimated average yield of 8 tonnes per hectare. Production of vegetables is estimated at around 53.88 million tonnes in the Seventh Plan as against a target of 40 million tonnes. Production of Coconuts, cocoa, cashewnuts and spices has increased. 1.3.3 The National Horticulture Board, the Coconut Development Board, the Arecanut, Spices and the Cashewnut Boards along with the Indian Spices Development Council, Indian Arecanut and Coconut Development Council, and the Indian Cashewnui Development Council, have played a significant role in the promotion of these crops. 1.3.4 Credit institutions like NABARD and NCDC have supported Post-Harvest Management of horticulture crops. Import of seeds and planting material of all horticulture crops has been permitted to improve the seed supply. Mushroom has also been given importance along with floriculture and medicinal plants. 1.3.5 During the Seventh Plan, a sum of Rs. 21.94crores was utilized for horticulture promotion implemented under ten schemes of National Horticulture Board, Coconut Development Board, Integrated Development of Tropical and Arid Zone Fruits, Development of Cashewnut, Arecanut, Cocoa etc. In 1990-91, the expenditure was Rs. 10.48 crores in respect of horticulture development schemes and for 1991-92 the approved outlay was Rs. 33.51 crores. Drip and sprinkler irrigation systems are being popularised for boosting production and productivity in rainfed areas. Agricultural Inputs

1.4.1 Seeds :Many of the programmes initiated in the earlier years for increasing the availability of quality seeds were continued in the Seventh Plan. A new Seed Policy was announced in 1988 permitting the import of high quality seed and planting material after verification of the performance in the Indian conditions. The third phase of the National Seed Project supported by the World Bank was also launched. Except for some oilseeds like groundnut and linseed and a few of the pulses, by and large the targetted level of seed distribution has bean achieved. I.4.2 Fertiliser : The consumption of fertilisers (N+.P+K) which increased from 5.5 million tonnes of nutrients to 8.2 million tonnes during the Sixth Plan further rose to a level of II.3 million tonnes in the final year of the Seventh Plan. Programmes have been taken up to encourage the use of bio-fertilisers. Forty Blue Green Algae Sub-centres were established for production of algae culture through field multiplication programme under the National Project on Bio-fertiliser development. Five central sector schemes, including National Project on Development and Use of Bio-Fertiliser and National Project on Quality Control were implemented during the Seventh Plan. Schemes for Balanced and Integrated use of Fertiliser and a National Project on Development of Fertiliser Use in Rainfed Areas were introduced in 1990-91 and 1991-92 Annual Plans which are to be continued during the Eighth Plan. 1.4.3 Plant Protection : Though the use of pesticides in the country is relatively low, it was decided to launch an Integrated Pest Management Programme (IPM) based on the use of biotic agents for control of pests and taking up treatment based on need rather than as prophyl-atic action. Several biological surveillance stations were set up. The Integrated Pest Management has the objective of maximising the returns to farmers from their efforts to control diseases, and reducing the adverse effects of toxic chemicals. The IPM should become a major plank for effective pest management in the years to come. 1.4.4 Agricultural Implements and Machinery : Three Central sector schemes for Farm Machinery Training & Testing Institutes at Budni, Hissar and Anantpur were continued in the Seventh Plan. Efforts were also made to popularise improved agricultural implements. A beginning was made in 1991-92 to promote use of modern irrigation devices such as drip irrigation and sprinklers etc. As many as 637 Farmers' Agro Service Centres have been assisted during the Seventh Plan to provide custom hiring of improved agricultural implements and machinery. Agricultural Extension 1.5.1 The main link between the farmers and the research workers is the extension personnel on whom rests the task of transfer of technology. The extension personnel regularly interact with the research system to get their knowledge upgraded, under the Training and Visit pattern of extension. The impact of extension activities has been varied in the country. Simple and meaningful reporting system could be evolved for improvement in monitoring the effectiveness of agricultural extension machinery. The World Bank assisted Agricultural Extension Projects, NAEP-I in the States of Madhya Pradesh, Rajasthan and Orissa, NAEP-II in the States of Haryana, Karnataka, Jammu & Kashmir and Gujarat and NAEP-III in Uttar Pradesh, Assam-, Himachal Pradesh and Bihar have reinforced the training facilities for extension functionaries. A major agricultural extension effort has been to broadbase the extension activity i.e. moving away from narrow individual crop orientiation to farming system approach. This was initiated in the last year of the Seventh Plan. Agriculture Credit 1.6.1 During the Seventh plan, disbursement of agriculture credit through cooperatives, commercial and regional rural banks increased from Rs. 5,810 crores in 1984-85 to Rs. 12,570 crores by 1989-90. The expansion in short-term, medium and long-term loans through cooperatives picked up only in the fourth year of the Seventh plan. The debt relief scheme, announced in 1990-91, affected the recovery climate resulting in a lower volume of credit flow. Several measures have been initiated by NABARD to increase the credit flow Separate lines of credit for oilseed growciwere opened.

1.6.2 The Comprehensive Crop Insurance Scheme has been in operation since Kharif 1985. The General Insurance Corporation, acting on behalf of Government of India, in collaboration with the State Governments, provide insurance cover to the farmers availing crop loans from cooperative credit institutions and banks for crops like paddy, wheat, millets, oilseeds and pulses. The premium rate to be paid by the farmers for rice, wheat and millets is 2% and in the case of oilseeds and pulses it is one percent. A subsidy is also provided by the State in respect of premium in the case of small and marginal farmers. Due to adverse climatic conditions and quantum jump in claims and heavy losses, the scheme was temporarily suspended in January, 1988, but was re-introduced in September, 1988 with limited insurance to a maximum of Rs.l0.000/-and 100% value of crop loan per farmer. The scheme is currently in operation in 18 States and three Union Territories. Cooperation: 1.6.3 Cooperatives are expected to play a major role in the distribution of inputs and services to the farmers on the one hand and in assisting marketing and processing of agricultural produce on the other. There are 76,000 fertilizer retailer outlets and 40 lakh tonnes of fertilizer nutrients were distributed during 1989-90. The National Agriculture Cooperative Marketing Federation (NAFED) has undertaken price support operations in respect of oilseeds, coarse grains, pulses, potatoes and onions. The National Agriculture Cooperative Marketing F'-deration-exported 3,60,220 tonnus of onions during 1989-90 which helped maintain the price line in domestic market. The NAFED also procured 6,022 tonnes of copra as price support operation. 1.6.4 Cooperative godown/warehousing capacity increased from 80 lakh tonnes in 1984-85 to 100 lakh tonnes by 1987-88. By 1990-91, 141 lakh tonnes of storage capacity had been created mainly in Punjab, U.P., Maharashtra, M.P., Karnataka, Andhra Pradesh and Hi-machal Pradesh. The NCDC was established in 1963 as an organisation to plan, operate and develop the agricultural sector through cooperatives. Sustained efforts were made in promoting cooperative storage and processing units and in strengthening the cooperatives for distribution of inputs. A storage capacity of 114.47 lakh tonnes had been completed under the-cooperative sector by 1989-90. In doing so, the Seventh Plan target for creation of additional capacity of 20 lakh tonnes had been exceeded by constructing storage capacity of 35.18 lakh tonnes. The NCDC promoted 239 cold storage units with capacity of 6.83 lakh tonnes of which 229 cold storages with 6.35 lakh tonnes capacity were installed. The capacity utilisation of the cold storages ranged between 80 and 100 per cent. The NCDC has so far promoted a total of 2442 number of processing units upto 1989-90. 1.6.5 The NCDC is presently implementing a World Bank assisted project called NCDC-III, under which a total assistance of Rs.575.67 crores has so far been sanctioned covering projects in the areas of storage, cotton spinning, oilseed processing, marketing of fruits and vegetables and training of project staff, etc. Watershed Management 1.7.1 The National Watershed Development Project for Rainfed Areas (NWDPRA), initiated in the Sixth Plan, was continued during the Seventh Plan. Extensive changes were introduced in this major programme for the development of the rainfed agriculture during 1990-91. It was also decided that Central assistance for the implementation of the programme should be liberalised with 75 per cent of the amount to be given as grants to the States and 25 per cent as loans. The NWDPRA envisages that a micro watershed will be taken up for development in every block having assured irrigation of less than 30 percent. In developing the micro watersheds, a holistic approach is to be adopted including, inter alia, the diverse production systems, be that seasonal cropping, perennials like horticulture, forestry or animal husbandry activities. Use of vegetative barriers is the principal means to prevent soil erosion and to conserve moisture. Arable, non-arable lands as well as the drainage lines will be treated in an integrated manner. To the largest extent possible, the programmes contemplate enrolment of beneficiaries both in planning for development and execution of various activities. Extension support through local progressive farmers is another critical element. Training of all concerned has been emphasised.

Soil and Water Conservation 1.7.2 During the Seventh Plan, schemes oh soil conservation in the catchments of inter-State river valley projects, and the flood prone rivers, reclamation of alkaline (usar) soil, control of shifting cultivation and development of ravine areas were taken up. Soil and water conservation activity in 27 catchments taken up in 17 States covered 2.4 million hectares by the end of the Seventh Plan with a reported expenditure ofRs. 307crores. 1.7.3 Watershed management schemes in the catchments of flood prone rivers are being implemented in eight catchments in seven States and one Union Territory. Upto the end of the Seventh Plan, 3.78 million ha. (10% of the priority area) have been treated at a cost of Rs. 91 crores. In view of the limited success of these programmes, these should be evaluated for cost effectiveness and replicability. People's participation should be encouraged and whereever possible, voluntary organisations should be engaged in such activities. 1.7.4 For the Central scheme of Control of Shifting Cultivation, Planning Commission extended assistance amounting to Rs. 52 crores to Andhra Pradesh, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Orissa and Tripura during last five years. It benefited 26532 tribal families. 1.7.5 Under Central scheme on Ravine Reclamation Planning Commission assisted Uttar Pradesh, Madhya Pradesh, Rajasthan and Gu-jarat on year to year basis w.e.f.. 1987-88. Animal Husbandry: 1.8.1 Animal husbandry is one of the important sub sector of agricultural economy and plays a significant role in the rural economy by providing gainful employment particularly to the small/marginal farmers, women and agricultural landless labourers. This sector also provides milk, eggs, meat, wool, hides and skin, dung, bones, hooves and draught power. Manures and slaughter house by-products are also sources of energy. 1.8.2 The contribution of the livestock sector has increased to about Rs. 27,700 crores in 1987-88 as compared to Rs. 10,600 crores in 1980-81 which constitutes 25.5% of the total agricultural output. The animal husbandry sector has made good progress in the livestock production and health. Several schemes of the Seventh Plan period were restructured for more effective implementation. 1.8.3 Achievements during the Seventh Plan (year wise) and annual Plans (1990-91 & 91-92) are as under : Table-1.2 Year 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92(a mt. Milk (mill.tonnus) 41.5 44.0 46.1 46.7 48.4 51.5 54.9 57.5 Eggs (mill.nos.) 14252 16128 17310 17795 18890 20204 21342 22751 Wool (m.kgs.) 38.0 39.1 40.0 40.1 40.8 41.7 42.0 43.6

ach.) 1.8.4 An important aspect of the livestock development programme is the enhancement of the productivity of milch cattle through upgra-dation by cross breeding. Frozen semen technology based on progeny bulls is a major plank of the programme and has resulted in improved productivity. 1.8.5 Drought intensity during the Seventh Plan period has pointed to the need for integrating animal husbandry programme with the development of fodder. Programmes for improving availability of fodder and seeds, development of pasture lands, feed analytical laboratories for analysis of various nutrients and toxins were taken up. 1.8.6 Operation Flood Project was started in 1970 by the National Dairy Development Board (NDDB) and the number of dairy cooperative societies increased from 34,523 in 1984-85 to 64,000 in 1991-92. The peak milk procurement increased from 7.9 to 13.5 million kgs./day, fluid milk from 5 to 11 million litres/day and rural milk processing capacity from 8.8 to 17.8 -million litres/day. The Technology Mission on Dairy Development was established to dovetail the activities of the Central and State Governments, NDDB and 1CAR research institutes for better implementation of programmes. 1.8.7 The ICAR and the Central and State poultry breeding farm units supported and augmented productivity of quality layer and broiler birds and NAFED provided marketing support for poultry products, 1.8.8 Sheep and Wool Development Boards or federations'in potential States assisted in ensuring remunerative, returns to shepherds. Indigenous wool production is largely of carpet quality, apparul wool accounting for only about 10% of overall annual wool production. This has necessitated import of 20-25 million kgs.of fine wool ev.;iy year. 1.8.9 Animal health care services were provided through poiyclinics, hospitals, dispensaries and veterinary aid centres, besides mobile dispensaries under the Operation Flood Project. Disease diagnostic facilities at State laboratories were strengthened. Biological units for production of vaccines to prevent various animal diseases were setup. Bio-tech-nology centres on animal health and production were established. Fisheries 1.9.1 The average annual growth rate of fish production during the Sixth Plan was only 3.94 percent. The major constraints were over-concentration on shrimp fishing, non-exploitation of unconventional fishery resources in the marine sector and slow progress in the expansion of extensive and semi-intensive aquacul-ture systems in the inland and brackish-water fisheries. Processing and marketing facilities for sea food and inland fish were inadequate. To overcome these difficulties, adequate attention was paid during the Seventh Plan through incentives and regulatory measures and fish production rose to 36.77 lakh tonnes. By the end of the Seventh Plan, 22.75 lakh tonnes of marine and 14.02 lakh tonnes of inland fish were produced, indicating an average annual growth rate 6.25 percent. Banning of bull trawlers, motorisation of traditional craft -and creation of National Welfare Fund for Development of Fishermen Villages to provide housing, sanitation and drinking water, Group Accident Insurance Scheme etc. have helped in some measure to improve the quality of life of fishermen. Introduction of Beach Landing Craft with assistance through cooperative societies was .a success in Orissa and Andhra Pradesh. 1.9.2 In the inland water fisheries sector, the establishment of about 300 Fish Farmers Development Agencies (FFDA) and fish seed production hy circular Chinese type of hatcheries etc. contributed to an increase in the average yield in FFDA districts to 1560 Kgs. per ha. per annum from the Sixth Plan level of 900 kg/ha. Fish seed production also rose to 12,000 millions from 5639 millions. 1.9.3 Other important programmes include brackish water fishery development by transfer of technology through Brackishwater Fish Farmers Development Agencies. The semi-intensive shrimp farming

technology was upgraded under a UNDP assisted coastal aquaculture project (1986). In the deep sea fishing sector, considering the need for foreign technology to exploit non-shrimp resources, introduction of large number of resource specific vessels was considered. Schemes for leasing, test fishing and joint ventures were formulated. The Fishery Survey of India carried out studies on assessment of suitable craft and gears for marine fisheries and disseminated information about fishery resources availability. Deep sea fishing fleet increased to 171. Suitable credit facilities, technology for harvesting non-shrimp resources, skilled manpower and infrastructure facilities including storage and processing facilities were augmented. 1.9.4 The Central Institute of Fisheries Nautical & Engineering Training (CIFNET) catered to the development of trained manpower for the fishing industry and the Institute's vessels provided in-vessel training to the trainees. The Integrated Fisheries Project was engaged in experimental fishing activities for propagation of diversified fishing methods, besides introduction of processed fish products on semicommercial scale. The Central Institute of Coastal Engineering for Fishery (CICEF) conducted preinvestment investigation, examination and designing of the -facilities required at fishing harbours etc. Besides, the Institute conducted investigation for brack-ishwater fish farm to obtain the desired culture results. Four major fisheries harbours, 18 minor harbours and 86 landing centres were commissioned by the end of Seventh Plan. 1.9.5 In July, 1988, the Government of India decided to create a separate Ministry of Food Processing Industries (MFPI) and some of the functions relating to fisheries were transferred to it. Primarily, the MFPI is to deal with the following areas, so far as fisheries are concerned:

i. ii. iii. iv.

Fishingand fisheries beyond the territorial waters including deep sea fishing station now called Fishery Survey of India,(Bombay). Processing of fish Technical assistance and advice to fish processing industry; and Establishment and servicing of Development Council for Fish Processing Industry.

1.9.6 For suitabi coordination, a National Fisheries Advisory Board was set up in January 1989 with the objective of rendering advice in respect of development of fisheries and orderly development of fishing industry, export of marine products, etc. 1.9.7 The processing industry and internal marketing of fish require substantial infrastruc-tural development. There are 216 freezing plants with capacity to handle 2200 tonnes per day, but these have limited use as these mainly have plate freezers which do not give sufficient value addition as compared to Individual Quick Freezing Plants (IQF). The cold storage facilities (5000 tonnes) are highly inadequate. Ice plants with cold storage facilities, establishment of retail fish marketing centres, fish handling sheds, insulated fish marketing centres, insulated fish transportation vehicles etc. are to be developed in a substantial way for sustained growth of the fishing industry. 1.9.8 Fish production during 1990-91 stood at 38.36 lakh tonnes, which was marginally above the target. The target for 1991-92 was 39.90 lakh tonnes consisting of 24.40 lakh tonnes of marine fish and 15.50 lakh tonnes of inland fish. No substantial increase from the coastal waters is possible as it is mostly over exploited. A new unit of Integrated Fisheries Project was installed in Visakhapatnam during 1990-91 to help the fishing industry to optimise utilisation of low value fish. Technical consultancy services and introduction of diversified fish products, reimbursement of central excise duty on HSD oil used by fishing vessels less than 20 m. in length was undertaken during the two Annual Plans. For brackish water culture, more areas have been supported through BFDAs. Under the National Welfare Fund Scheme, 72 fishermen villages and about 8.5 lakh fishermen have been insured under the Group Accident Insurance Scheme so far. The number of fishermen Primary Co-operative Societies stood at 8,170 having a membership of 6.6 lakhs. However, except in Maharashtra, Gujarat, Tamil Nadu and Orissa, the fishermen co-operatives in other States do not play any significant role in the development of fisheries.

1.9.9 The export of marine products during 1990-91 was 1,38,400 tonnes valued at Rs. 890 crores. The target of fish exports for 1991-92 is 1,65,700 tonnes valued at Rs. 1000 crores. Physical targets and achievements of Fisheries during the Seventh Plan as well as the annual plans of 1990-91 and 1991-92 are given in Table-1.3 . Agricultural Research & Education 1.10.1 The Indian Council of Agricultural Research (ICAR) is the apex organisation for sponsoring, coordinating and promoting research, education and extension education in agriculture and allied fields in the country. Under the Council there are 43 Central Institutes, four National Bureaux, 20 National Research Centres, nine Project Directorates, 70 All India Co-ordinated Research/Improvement Projects (AlCRPs) and 109 Krishi Vigyan Ken-dras in the country. The Council also assists 26 State Agricultural Universities (SAUs) and other leading institutions involved in agricultural education and research. A review committee was set up under the chairmanship Table-1.3 Physical Targets & Achievements Fisheries Sl.No Item Unit Target Achievement (Seventh Plan) I. Fish Production a)Marine b)Inland Total II. Fish Seed Production III. Water Area To Recovered Under Intensive Fish Culture Lakh tons " " Million Lakh ha. (cum) 17.90 14.60 32.50 12000 2.70 22.75 14.02 36.77 12000 2.46 23.52 14.70 38.22 12500 3.00 23.00 15.36 38.36 12500 2.82 24.40 15.50 39.90 13000 3.40 Target 1990-91 Achievem -ent 1990-91 Target 1991-92

IV. Fish/prawn Seed Nos Hatcheries V. Traditional Craft To Be Motorised 000'Nos.

45 (public sector) 5000

39 (pubic sector) 4667

2000

2661

2000

of Shri G.V.K.Rao which has been, by and large accepted by the Government. 1.10.2 A number of new centres to conduct research on several specific problems and All India Coordinated Projects were established during the Seventh Plan. These cover many major areas such as Brackishwater Aquacul-ture, Post-Harvest Technology, besides issues connected with annimal husbandry, horticulture etc. 1.10.3 Three new Agricultural Universities, namely Dr. Y.S.Parmar University of Horticulture and Forestry, Solan, the University of Agricultural Science in Dharwad and Indira Gandhi Krishi Vishwa Vidyalaya, Raipur, were established during the Seventh Plan. 1.10.4 As many as 109 Krishi Vigyan Ken-dras have been set up in the country till March, 1992. Of them, 65 are under State Agricultural Universites, 25 being operated through Voluntary agencies, State Governments, and other institutions and the remaining 19 are under the ICAR.

1.10.5 For strengthening the regional research capability of State Agriculture Universites (SAUs), the National Agriculture Research Project (NARP) was launched by the ICAR in January, 1979 with the support of soft loan from the World Bank. It is now in the middle of its second phase. The NARP-II shall continue the process initiated under NARP-I, for strengthening the zonal and the regional research stations of SAUs and also include need-based strengthening of ICAR Institutes. Under NARP-I, extended to ^NARP-II phase, 117 sub-projects and about 250 zonal/regional stations have been strengthened. Agro-climatic Regional Planning Approach 1.10.6 The Agro-climatic Regional Planning Approach (ACRP) was initiated by the Planning Commission in 1988 to formulate integrated development plans for agriculture and allied sectors differentiated by homogeneous agro-climatic regions. During the Eighth Plan, emphasis is on development of resources and their optimum utilisation in an integrated and sustainable manner for constituent subsectors. A macro-level strategy for the 15 broad agro-climatic zones, is proposed to be incorporated in operational integration in state plans covering activities in crop and non-crop sectors. ARPU teams are preparing Operational Plans for about 30 districts. These will be implemented in pilot block/watersheds during the Eighth Plan with the help of the State Agricultural University, ICAR, and State extension officials working at the district level. Eighth Plan Strategy and Thrust 1.11.1 The Eighth Plan will aim at consolidating the gains from the base built over the years in agricultural production; sustaining the improvements in productivity and production to meet the increasing demands of the growing population; enlarging the incomes of farmers, and realising the country's potential by stepping up agricultural exports. While the production of several commodities has shown significant increases, a cause for major continuing concern is that the growth rates in agricultural production is highly skewed in terms of geographic areas as amongst crops. Rapid improvement in productivity and production of a few of the agricultural crops, since the introduction of high yielding varieties technology from the mid-sixties, has been conspicuous only in small pockets of well endowed irrigated areas. Eastern India in the heavy rainfall zone the vast rainfed tracts in the country and the hill regions have not been able to adopt the technologies for achieving high growth rates. It will be of crucial significance, not only on account of the need to reduce regional disparities, but also essentially to raise production levels, that far greater attention is devoted to bring about an accelerated growth in. areas which have relatively lower growth. Efforts to concentrate on productivity of principal crops in these regions through programmes initiated in the Sixth and the Seventh Plans will have to tie further intensified. Appropriate tecnnologies designed to meet the specific location problems, need to be generated. 1.11.2 In the rainfed areas, farming system approach should be the basis for enabling farmers to make scientific and optimum use of their land and water resources to increase their incomes. Diversification of the agricultural production systems may be called for, together with scientific management of land, to prevent soil erosion and achieve better in situ moisture conservation. A holistic approach towards the development of rainfed areas, which forms the raison d'etre for the restructured National Watershed Development Programme for the Rainfed Areas, cannot be over emphasised. This programme will be adequately funded and implemented vigorously. 1.11.3 A preponderant proportion of land holdings is small or marginal. Even with the best of productivity of traditional crops cultivated by the small holders, the resultant incomes may not be sufficient to support a minimal standards of living. Agricultural production systems followed by this segment of farming community may have to be diversified into other allied activities, capable of generating higher returns and incomes such as animal husbandry, horticulture, both irrigated and unimgated, sericulture, fisheries, agroforestry etc. 1.11.4 Rural unemployment and under-employment are issues of serious concern in areas with relatively poor growth in agriculture. The treatment of rainfed areas on watershed basis may provide employment

opportunities for unskilled labour by way of developing the potential of drylands, construction of water harvesting structures, plantation of horticulture, agro-forestry etc. Many of the alternative agricultural production systems can generate employment opportunities on a self-sustaining basis. 1.11.5 Even in the irrigated areas, there is potential for increasing productivity through dissemination of improved technologies amongst the entire farming community, when viewed in the context of the yield potential of varieties presently under cultivation and further improvements which agricultural research cn engender. Effective water management, through timely application of the minimal required volumes of water in the light of the prevailing agro-climatic factors, can enhance the yields further. Continued emphasis in this area is a prerequisite for achieving higher level of agricultural production to ensure food security and meet the agricultural raw materials requirements of the processing units. Conjunctive use of surface and ground water will need to be promoted, especially in Bihar, West Bengal, Assam and Orissa. 1.11.6 Watershed management principles also address themselves to the environmental concerns in the ecologically fragile areas like the undulating rainfed lands, the hilly terrains etc. Efficient use of chemical fertilizers, recycling of organic wastes and use ofbio-fertilizers have an important place in the sustainable agricultural development process. A major plank in recent years has been the Integrated Pest Management (IPM) for achieving control over pests and diseases affecting crops. Though the use of toxic pesticides is still relatively low, it is necessary from several angles to ensure that the use of pesticides is restricted only to those circumstances where it is inescapable. The use of minimal quantities of chemical pesticides in an effective manner will improve the returns to the farmers. Secondly, this will substantially reduce the environmental pollution. Use of cultural means, selection of pest resistant varieties and use of biotic agents for control of pests such as parasites and predators will have to be recommended and widely adopted. Effective surveillance of pest build-up is a critical aspect 'I i's'M. The Eighth Plan will greatly increase the use of IPM in several major crops. 1.11.7 The marketing infrastructure has to be further augmented and streamlined, especially in respect of perishable commodities, if diversification is to succeed and primary producers are. enabled to realise a fair share of the price paid by the consumers. As the country increases production beyond its own requirements, or where the country has comparative eco nomic advantage in the light of technological gains, or to promote diversification, the marketing of agricultural produce within and outside the country assumes greater importance. Strengthening of the existing marketing infrastructure, besides improving the logistics in the movement and storage of goods is necessary to cut down losses at various stages of handling of the produce. This is vital from the view points of both the producers as well as the consumers. Efficient marketing by co-operatives of producers themselves and their Apex organisations will need to be intensively promoted. 1.11.8 Recent changes in the Industrial policy with de-regulation and lesser direction by the State, have thrown open opportunities for a rapid phase of expansion of the agro-based industries, particularly the processing units. Induction of the latest technologies in processing and better packaging can help Indian processed food products compete in the international markets, besides catering to the growing market within the country. Special efforts would have to be mounted to give a fillip to the production of fruits, vegetables, milk and meat for being processed in units established, including those in the rural areas. This can create jobs for the educated, the semi-skilled and the unskilled in the country-side. Increased value additions can also help larger realisations for the primary products produced by the farmers. 1.11.9 The changes in the trade policies have vastly improved the prospects for realising the full potential of the country with its varied agro-climatic conditions from tropical to temperate regions, in producing commodities for exports. Apart from maximising the production of the traditional export commodities, the new seed policy has created a climate for producing non-traditional commodities like flowers and different types of vegetables for exports. Systematic efforts to overcome, such constraints as may exist in the development of markets abroad will have to be launched and sustained in the coming years.

1.11.10 There can never be a stage where the effort to continuously monitor and ensure, through well conceived programmes, the availability of high quality inputs at reasonable prices can cease. Timely availability at as near the place of cultivation as possible vitally influences the farmers' ability to accept and adopt the recommended technologies. Further streamlining of delivery systems is necessary in many parts of the country where the current levels of consumption are very sub-optimal. Production and distribution of inputs have been undertaken by the public, the private and the cooperative sectors. Similarly, the requirements of short, medium and long-term credit need to be met in larger measure in several states to provide the required backing for intensive application of improved technologies. 1.11.11 Promotion of. initiatives outside the Government to further socio-economic development is of cardinal importance and is central to the strategy of the Eighth Plan. The non-governmental initiatives may be in the form of those undertaken by the industry, formally or informally organised groups of individuals etc. In addition, over the years, efforts have also been directed towards decentralisation of the development administration. The Panchayat Raj institutions and the cooperatives need to be strengthened to facilitate much greater involvement of the people in the identification of the felt needs, plan formulation, implementation and monitoring. Many of the agricultural development programmes lend themselves to better administration through the closest involvement of the beneficiaries. The nongovernmental organisations have begun to play an important role. This process will be further strengthened. In several areas like integrated development of the rainfed areas on watershed management principle, agricultural extension and organisation of provision of services, the association of NGOs can lead to far greater cost-effectiveness in the implementation of the programme. 1.11.12 Many of the programmes and schemes will have to be continued from the previous plans, with necessary refinements/modifications to address themselves sharply to the problems they seek to overcome. The changing scenario of agricultural development in different areas would require a periodic review based on continuous evaluation of the implementation of the programmes. A beginning has to be made particularly to promote and accelerate the diversification process. The following paragraphs deal with some of these aspects. 1.11.13. The importance of land reforms with respect to increasing agricultural production and productivity can not be overemphasised. The land reform measures through provision of security to tenants and consolidation of land holdings, etc., apart from other things, can help bringing land under profitable agronomic practices. In West'Bengal, land reform measures comprising vesting of ceiling surplus land, distribution of vested land among the landless and the submarginal farmers, providing tenurial security to share croppers, updating of records of rights, etc. has significantly contributed to augment productivity of major crops. 1.11.14. The procurement and support prices for important agricultural crops will be fixed by taking into consideration factors like cost of production, change in market prices, input-output parity, inter-crop price parity, effects on industrial cost structure, etc. A suitable price policy could play a vital role in giving appropriate signals to farmers and also help in providing incentives for stepping up agricultural investments. A major aspect of this policy will be to ensure adequate return on investment made by the farmer. In this, the recommendations of various expert committees will be considered by government and necessary modifications effected. The price policy will be reviewed keeping in view the major objectives of moving towards commercialisation of agriculture, achievement of food security and generation of adequate surplus for export. Crop Production Oriented Programmes: 1.12.1 Many of the important programmes to maximise production of several crops will be continued during the Eighth Plan. Those include: the Special Foodgrains Production Programme in respect of rice, wheat, coarse cereals, as well as programmes like the oilseeds, pulses, cotton development, etc. The focus of these programmes is to extend improved technologies amongst the farmers. Demonstrations of the latest technologies constitute a critical element of these programmes. These will have to be streamlined, systematised and closely monitored to get the optimum results. The farmers' acceptance of

the technologies will be facilitated through successful demonstrations. A far greater planning in the organisation of demonstrations will be sought to be achieved. Special efforts will be made to reori-ent the programmes to address themselves to the basic constraints faced by the farmers in the States/areas where the current yield levels are low, as in the case of rice in Eastern India, wheat in Bihar, Madhya Pradesh and' Eastern UP and coarse cereals in the Central and Western parts of India. A further intensification of measures to improve productivity and production of pulses and oilseeds will be achieved under the programmes through linkage with the technologies being generated by the Indian Council of Agricultural Research State Agriculture University (ICAR-SAU) research systeai1.12.2 In particular, the emphasis will be on production of Basmati rice which is one of the top foreign exchange earners. The prospects of exports of hard wheat (durum) are also bright and production will have to be improved. Coarse cereals not only constitute the staple diet in several regions but also have industrial use as well as in the manufacture of cattle/poultry feeds. 1.12.3 For accelerated production of oil-seeds, the production programmes will seek to expand the area under oilseeds through

a. b. c. d.

diversion of upland rice in many States like Madhya Pradesh and Orissa to groundnut cultivation, where the yield levels of rice are very low and the crops often suffer from moisture-stress condition; larger coverage of soya-bean in Orissa, Gujarat, Maharashtra, Bihar and Uttar Pradesh, partly through substitution of less remunerative crops or taking soyabean as an inter-crop in several cropping situations; further enlarging the area under rapeseed-mustard in place of rainfed wheat or in place where assured irrigation is not easily feasible with consequent impact on wheat yields and extension of groundnut, and. sunflower to be grown in summer season.

1.12.4 The production of cotton has to be increased in the coming five years at rates higher than the longterm trends keeping in view the much larger exports which the country can achieve in the form of raw cotton, yam and garments. Significant increases in yields through provision of life saving irrigation, better agronomic practices in the traditional rainfed cotton tracts of the country i.e. Madhya Pradesh, Maharashtra, Gujarat, can improve the economic lot of the fanners and enlarge, employment opportunities, as cotton generates large number of mandays per unit of land. The Intensive Cotton Development Programme will have to be stepped up. Targets of Production of Principal Crops: 1.12.5 The targets of crops production as well as likely area of the principal crops or groups of crops are given in the Table 1.4. 1.12.6 Targets of major agricultural crops for the Eighth Five Year Plan have been projected on the basis of agricultural sub-model which takes into account factors, such as gross irrigated area, gross cropped area, fertiliser consumption, area expansion, rainfall index and outputs in a regression frame work. The targets proposed above would call for much higher efforts in the Eighth Plan than the earlier Plans. Horticulture Crops 1.13.1 During the Eighth Plan, the emphasis in respect of horticultural crops will be on production of quality planting materials, area expansion, improvement in quality and increase in productivity. Popularisation of modem agro-techniques, especially of growing horticultural and floricultural crops in controlled conditions such as green/glass houses, will be vigorously promoted. Strengthening of infrastructure facilities for grading, sorting, storage, packing and marketing, together with the propogation

of post-harvest technology will be the major thrust in the area of horticulture development. The Agricultural Products Export Development Authority (APEDA), The NAFED and the National Horticulture Board will continue to support marketing and establish facilities for vapour, heat and cold treatments etc. Joint ventures can be encouraged to obtain technology for processing purpose. A standing.export promotion committee should be set up to promote infrastructural development for facilitating export of horticulture products. 1.13.2 Fruits, vegetables and cut flowers will receive greater attention. For export of horticu-lutral products, suitable selection of varieties of fruits, vegetables and flowers including orchids in the potential areas will be identified and supported. Modem technologies like plas-ticulture, drip irrigation, and tissue culture will be encouraged for speedy development of horticulture. Table-1.4 Areawise Break-up Of All India Targets Of Principal Crops P- Production-million tonnes; A - Area - million hrctare; Y- Yield - kgha Crop l.Rice 2-Wheat 3 . Coarse Grains 4.Pulses 5 . A 1 1 Foodgrain 6. Oilseeds 7.Sugarcane S.Cotton * 9.J u te& Mesta ** 10. Other Crops 11. All Crops 1991-92$ A 42.50 23.50 37.50 23.50 127.0 23.5 3.70 7.40 1.00 19.60 182.20 P 72.50 56.00 30.00 14.00 172.5 17.5 235.00 10.50 9.00 Y 1706 2383 800 596 135 74 63514 241 1620 1996-97 A 43.50 24.25 37.75 24.50 130.0 24.5 3.90 7.50 1.00 23.70 190.60 P 88.00 66.00 39.00 17.00 210.0 23.0 275.00 14.00 9.50 Y 2023 2722 1033 694 1615 939 70513 317 1710

$ Likely Achievement; * In million bales of 170 Kg each; --In million bales of 180 Kg each; Plantation Crops Tea 1.14.1 Tea production in the country has increased from 652 million Kgs in 1985-86 to 703 million Kgs in 1989-90. There is need for a further increase in the production and productivity of tea to meet the growing domestic consumption and also to increase our share in the global tea export. During the Eighth Plan, a high priority will be accorded to the scientific management of small tea gardens, replanting of old and uneconomic tea bushes by high yielding planting material, reduction in regional disparity in tea productivity, extension of tea cultivation in traditional and non-traditional areas through encouragement at family tea gardens, tea cooperatives and group farming system and popularisation of Indian tea in the global market. Coffee 1.14.2 The average production of Coffee during the Seventh Plan is estimated at 1,55,000 tonnes against the target of 163,000 tonnes. Coffee production was of the order of about 1,73,000 tonnes in 1990-91. The Coffee Board has substantially increased the production base and built up infrastructure in the field of

research, extension, marketing and promotion. Sustained export promotion efforts will be made to establish India as a major supplier of quality coffee. Rubber 1.14.3 India is the fourth largest natural rubber producer in the world. Production of natural rubber was satisfactory during the Seventh Plan period. It has significantly increased from 201,000 tonnes in 1985-86 to 297,000 tbnnes in 1989-90. It is expected to be about 364,000 tonnes in 1991-92, showing an increase of 10.3% over the level of 330,000 tonnes recorded in 1990-91. The Eighth Plan strategy for development of rubber plantation will focus on (i) expansion of rubber cultivation in non-traditional areas; (ii) replanting of old and low yielding plants with high yielding planting materials; (iii) increasing productivity of existing plantation through promotion of irrigation and adoption of improved cultural and crop exploitation practices; (iv) adoption of improved processing techniques/methods and practices and (v) quality improvement. Though rubber is not included under "forest" under the Forest Conservation Amendment Act, 1988, in areas like North-East Region, Andaman and Nicobar Islands, Orissa, Madhya pradesh, West Bengal, Andhra Pradesh and Western Region covering Karnataka, Goa and Maharashtra it could do well as major afforestation species. Spices 1.14.4 At present, the country produces around 20.0 lakh tonnes of different spices valued at about Rs.3500 - Rs.4000 crores. India's share in the global trade of spices is 22% in volume and 10% in value. Among the major spices, Cardamom suffered a serious set back during the Seventh Plan period. The export of pepper declined to about 32,000 tonnes in 1990-91 from 37,000 tonnes in 1986-87. The export of spice oil and oleoresins exhibited a rising trend. The main thrust in the development and export programmes will be on identification of better export markets and cultivation of improved high yielding varieties, improved post-harvest technology and storage facilities. Some spices varieties are imported to meet the domestic demand in the country. These include clove,cinnamon, nutmeg, mace and cassia. Efforts will be made to achieve import substitution by encouraging cultivation of these spices in the country. Tobacco 1.14.5 Tobacco as a commercial crop, is one of the major export items. During the Eighth plan, the focus will be on (i) intensification ofR&D activities for developing alternate use of tobacco for medicinal purposes, etc. and (ii) diversion of the tobacco area to some other crops, giving higher returns. Targets of Plantation Crops : 1.14.6 The targets for production and export of plantation crops for the Eighth Plan are given in Table-1.5. Table 1.5 Eighth Plan Production & Export Targets for Plantation Crops. VIII Plan(1996-97) Crop Tea Coffee Spices Cardam om Tobacco Unit (million kg) (000 tonnes) (000 tonnes) (tonnes) (mill kg) Production 950 220 2076 6000 175 Exports 300 125 163 2250 80

Rubber

(000 tonnes)

600

9th Five Year Plan (Vol-2)

Introduction 4.1.1 Agriculture has all along been the most crucial sector of the Indian economy. Agriculture and allied activities make the single largest contribution to the Gross Domestic Product(GDP), accounting for almost 27 % of the total. Agriculture provides employment to around 65 % of the total work force. AGRICULTURE SECTOR Accounts for almost 27% of GDP. Provides employment to around 65% of the total work force. Contributes 21% of total exports. Provides raw material to several industries.

Agricultural growth has direct impact on poverty eradication. The share of agricultural products in the total export earnings is also substantial. Many of the industries still depend on the agricultural sector for raw materials as well as for market. Agricultural growth is also an important factor in containing inflation, raising agricultural wages and for employment generation. Fifty Years of Indian Agriculture 4.1.2 India inherited a stagnant agriculture at the time of independence in 1947. The first task of Indian Government in the immediate post-independence period was, therefore, to initiate growth process in agriculture. The agricultural policy was governed by a planning framework. The quantum of Plan outlay, its financing and the targets set for the agricultural sector were all decided through the planning process at the State and Central levels. The first three Five-Year Plans concentrated on growth with some institutional changes including abolition of intermediaries in agriculture, like Zamindars and Jagirdars. In the mid-Sixties, a new technology in the form of high-yielding varieties (HYVs) was introduced for cereals. Apart from the new technology, public investment in agriculture particularly in irrigation, was stepped up significantly. The public sector played an important role in promoting agricultural research and education. Large investments were made for the development of research system under the aegis of the Indian Council of Agricultural Research (ICAR) and the State Agricultural Universities (SAUs). Simultaneously, a well designed extension network was created for disseminating new technologies to the farmers. The administered price policy has provided incentives to the farmers. Successive Five-Year Plans aimed at improving the infrastructure through irrigation, stepping-up the use of fertilisers, improved varieties of seeds implements and machinery and supply of credit. As a result there has been a significant increase in the use of modern inputs leading to higher productivity and production. 4.1.3 The agricultural growth rate of around 2.7 % per annum in the post-independence period was much higher than the negligible growth rate of 0.3 % per annum in the first half of this century. The production of foodgrains increased from 50.8 million tonnes in 1950-51 to about 199.3 million tonnes in 1996-97. The production of commercial crops like cotton, oilseeds, sugarcane, fruits and vegetables, besides livestock products and fisheries have also recorded significant increases during the same period (Table 4.1.1).

Table 4.1.1

Production of Major Crops and Allied Activities: (1950-51 to 1996-97) (million tonnes) -----------------------------------------------------------------Crops 1950-51 1970-71 1980-81 1990-91 1996-97 -----------------------------------------------------------------Foodgrains 50.82 108.42 129.59 179.39 199.32 Rice 20.58 42.22 53.63 74.29 81.31 Wheat 6.46 23.83 36.31 55.14 69.27 C. Cereals 15.38 30.55 29.02 32.70 34.28 Pulses 8.41 11.82 10.63 14.26 14.46 Sugarcane 57.05 126.37 154.25 241.05 277.25 Cotton (m.bls) 3.04 4.76 7.01 9.84 14.25 Nine Oilseeds 5.16 9.63 9.37 18.61 24.96 Milk 17.00 21.20 31.60 53.90 68.60 Fish 0.80 1.80 2.40 3.80 5.35 -----------------------------------------------------------------Source: Agricultural Statistics at a Glance, 1997, Min. of Agriculture.

REVIEW OF EIGHTH PLAN Investment in Agriculture 4.1.4 During the first three years of the Eighth Plan period, the public investment in agriculture (gross capital formation) has shown an upward trend from Rs.1002 crore in 1991-92 to Rs.1316 crore in 199495. In the subsequent two-year period, it declined. However, there has been a steady increase in private investment from Rs.3727 crores in 1991-92 to Rs.5867 crore in 1996-97. Decelerating trends in public investment is a matter of concern given the complementary nature of public and private investments. Table 4.1.2
Agricultural Investment (at 1980-81 constant prices) (Rs. In crore) ------------------------------------------------------------------------Year Tota Public Private % share GCF i (GCF) (GCF) ------------------Agri Public Private ------------------------------------------------------------------------1991-92 4729 1002 3727 21.2 78.8 1992-93 5372 1061 4311 19.7 80.3 1993-94 5031 1153 3878 22.9 77.1 1994-95 6256 1316 4940 21.0 79.0 1995-96(Q) 6961 1268 5693 18.2 81.8 1996-97(Q) 6999 1132 5867 16.2 83.8 -------------------------------------------------------------------------

Q: Quick estimates; GCF: Gross Capital Formation; GFCF; Source: CSO, National Accounts Statistics, Various Issues. Growth of Agricultural Sector Foodgrains 4.1.5 The agricultural sector has registered an average annual growth rate of about 3.9 percent during the Eighth Plan period. The foodgrains production, which was 168.4 million tonnes in the base year (1991-92) of the Eighth Plan increased to a record level of 199.3 million tonnes in the terminal year(1996-97). During the first three years of the Eighth Plan, the foodgrains production kept on rising but unfavourable monsoon in 1995-96 brought down the production by about 11 million tonnes to the level of 180.4 million tonnes. Total foodgrains target set for Eighth Plan at 210 million tonnes was not achieved. The average annual growth rate of foodgrains production during the period 1991-92 to 1996-97 was around 3.43% . The rice output fluctuated quite a bit during the Eighth Plan. The production declined during 1992-93 and

1995-96 over the preceding years. In 1996-97, the production of rice stood at 81.3 million tonnes, about 9% less than the targeted 88 million tonnes. The Eighth Plan target of 66 million tonnes for wheat was exceeded in the terminal year of the Eighth Plan. The Eighth Plan target for coarse cereal production was 39 million tonnes. In 1992-93 the production achieved was 36.6 million tonnes which was the highest achieved so far. This level could not be reached subsequently. The production of pulses in 1991-92 was 12.0 million tonnes and in 1996-97 it was 14.5 million tonnes In between these years, excepting 1994-95 when it was 14 million tonnes, the production ranged between 12 million tonnes and 13.3 million tonnes only. The country could not make any visible breakthrough in raising the production of pulses during the Eighth Plan. Oilseeds 4.1.6 There has been a significant increase in the output of oilseeds during the Eighth Plan. It was 18.6 million tonnes in 1991-92, in the base year of the Eighth Plan. It kept on increasing all through the years of the Eighth Plan except for a small decline from 21.5 million tonnes in 1993-94 to 21.3 million tonnes in 1994-95. Its production in the terminal year of the Eighth Plan was 25 million tonnes, an all time record. Soyabean and sunflower have, of late, emerged as the oilseed crops having major growth potential. Cotton 4.1.7 The cotton production showed a significant increase during the Eighth Plan. The cotton output, which was 9.7 million bales in 1991-92, increased to a record level of 14.3 million bales in 1996-97. This was both due to increase in area and yields. Sugarcane 4.1.8 The production of sugarcane declined from 254 million tonnes in 1991-92 to 228 million tonnes in the first year of the Eighth Plan. The production reached a record level of 281.1 million tonnes in 1995-96. However, in 1996-97 the production declined to 277.3 million tonnes. The production target and achievement of various crops during the Eighth Plan period are given in table 4.1.3.

Table 4.1.3
Eighth Plan Targets and Production Performance of Crop (In Million Tonnes/Million Bales of 170 Kg.each of Cotton) -----------------------------------------------------------------------------------Crop 8th Plan 1992-93 1993-94 1994-95 1995-96 1996-97 Targets Achiev. Achiev. Achiev. Achiev Achiev. -----------------------------------------------------------------------------------Rice 88.0 72.86 80.30 81.81 76.98 81.31 Wheat 66.0 57.21 59.84 65.77 62.10 69.27 C. Cereals 39.0 36.59 30.81 29.88 29.03 34.28 Pulses 17.0 12.82 13.31 14.04 12.31 14.46 Foodgrains 210.0 179.48 184.26 191.50 180.42 199.32 NineOilseeds 23.0 20.11 21.50 21.34 22.10 24.96 Sugarcane 275.0 228.03 229.66 275.54 281.10 277.25 Cotton 14.0 11.40 10.74 11.89 12.86 14.25 -----------------------------------------------------------------------------------Source: Planning Commission/Ministry of Agriculture.

Plantation Sector

4.1.9 The production of tea has increased from 748 million kg. in 1991-92 to 775 million kg. in 1996-97. The production growth of less than one percent has, however, not kept pace with the fast increasing demand. Production of coffee has risen from 1.69 lakh tonnes during 1992-93 to 2.05 lakh tonnes during 1996- 97. The production of natural rubber increased from 3.67 lakh tonnes during 1991-92 to 5.42 lakh tonnes during 1996-97. In the traditional areas, the scope for expansion of rubber is very limited and about 95% of the existing area require replantation. India produces a wide variety of spices like black pepper, cardamom, ginger, turmeric, chillies etc. and spices occupy an important place among the agro products exported. At present, the production of spices in the country is around 24.7 lakh tonnes from an area of 25 lakh ha. The development efforts put into various spices crops during the Eighth Plan period contributed significantly to the increase in their area and productivity by 5.0 % and 8.0 %, per annum, respectively. India is the third largest producer of tobacco in the world. Export of tobacco was as high as 1.05 lakh tonnes during 1993-94. However, it declined to 0.54 lakh tonnes during 1994-95 on account of the collapse of the USSR market. It showed some recovery during 1995-96 with export of 0.87 lakh tonnes. Horticulture Crops 4.1.10 The growth in horticulture based activities in the last five years is due, in a large measure, to the thrust given during the Eighth Plan by the Government. The allocation in the Eighth Plan was raised to Rs.1,000 crore from the Seventh Plan allocation of Rs.24 crore. A large number of concessions, subsidies and incentives were given to the growers and exporters. Simultaneously, the liberalisation process introduced as a part of the New Economic Policy, eased the procedures for production, foreign collaborations and access to international markets. There has been a substantial increase both in the area and the production of horticulture crops during the Eighth Plan. The area under horticulture crops increased from 123 lakh ha. in 1991-92 to 150 lakh ha. in 1996-97 and the production rose from 961 lakh tonnes to 1410 lakh tonnes during the same period. Agricultural Exports Performance 4.1.11 A number of policy changes were introduced during the Eighth Plan to make agricultural exports more viable. This contributed to the increase in the exports of agriculture and allied products from Rs. 8228 crore in 1991-92 to Rs.25040 crore in 1996-97. Agriculture in allied products accounted for 21% of the total exports by the end of Eighth Plan. Since 1990-91, except for 1994-95, the share of agriculture exports has been steadily increasing. Agricultural Inputs 4.1.12 A number of significant changes have taken place in the seeds sector during Eighth Plan on account of economic liberalisation and changes in the seed policy. The distribution of certified/quality seed increased from 60.3 lakh quintals in 1992-93 to the estimated level of 70 lakh quintals in 1996-97. In the case of oilseeds, against the Eighth Plan target of 7.55 lakh quintals, the achievement in 1995-96 was already 12.48 lakh quintals. This has been mainly due to the excess achievement of 7.50 lakh quintals in groundnut against the target of 3.24 lakh quintals. The achievement for groundnut includes quality seed/other seeds. Fertiliser 4.1.13 The consumption of fertilisers (NPK) has been stagnant around 12 million tonnes between 199091 and 1993-94. Subsequently, it increased to reach the level of 14.3 million tonnes in 1996-97. There were changes in the policy on fertilisers in the 1990s. Phosphatic and potassic fertilisers were decontrolled in August 1992. Only urea (nitrogenous fertiliser) continued to be under the price control system and involves a heavy subsidy for keeping the farm gate prices low. Consequent to decontrol in 1992, prices of phosphatic and potassic fertilisers rose sharply. The gap between the controlled price of urea and the decontrolled prices of phosphatic and potassic fertilisers increased leading to an imbalance

in their use. Against the optimum N, P and K ratio of 4:2:1 and an actual ratio of 5.9 : 2.4 : 1 just before the decontrol, the ratio during the end of the Eighth Plan worked out to 10 : 2.9 : 1. It may be, however, noted that this ratio differs from area to area. Irrigation 4.1.14 Eighth Plan envisaged creation of additional irrigation potential of 15.8 million ha and utilisation of 13.6 million ha from major, medium and minor irrigation schemes . As against these, the additional potential created was 8.3 million ha and the incremental utilisation was only 7.9 million ha. By the end of Eighth Plan, the total potential created through major, medium and minor irrigation stood at 89.3 million ha and the cumulative utilisation at 80.7 million ha. Total utilisation as a percentage of total potential was 90.4. Agricultural Credit 4.1.15 Efforts to strengthen agricultural credit agencies have been given top priority in the Eighth Plan. Agricultural Credit is disbursed through a multi-agency network consisting of Cooperatives, Commercial Banks and Regional Rural Banks(RRBs). Agricultural loans provided by various agencies rose from Rs. 6992 crore in 1991-92 to Rs.28653 crore in 1996-97. While the short term agriculture credit from cooperative banks, RRBs and Commercial Banks increased from Rs. 6611 crore to Rs.19678 crore, the investment credit (medium and long term) increased from Rs. 4587 crore to Rs.10962 crore during the same period. As against the target of 40 % for priority sector lending by the banks, the sub target for agriculture has been fixed at 18 %. However, the achievement during the Eighth Plan was only 13-14 %. Watershed Management and Soil & Water Conservation 4.1.16 As about 63 per cent of the cultivated land falls under the rainfed areas, watershed management is an important factor for improving agricultural production. A holistic approach to bring about the development of integrated farming systems on watershed basis is the main objective of the National Watershed Development Project for Rainfed Areas (NWDPRA) and other externally-aided watershed development projects. During the Eighth Plan, an area of 28 lakh hectare was targeted to be covered with an allocation of Rs.1,100 crore. The allocations to North Eastern States and the drought prone areas of Orissa State were increased during 1996-97. Organising self-help groups of beneficiaries in the microwatersheds to institutionalise people's participation in the projects were stressed. To make soil treatment cost-effective, the guidelines emphasised on the vegetative conservation measures with active involvement of the beneficiaries and the non-governmental organisations (NGOs). The All India Soil and Land Use Survey has so far covered 1155.74 lakh ha. under priority delineation survey and 85.65 lakh ha. under detailed soil survey. A new scheme entitled "Application of Remote Sensing Technology for Soil Survey and Land Use Planning" has been launched during the Eighth Plan. The on-going Seventh Plan Centrally Sponsored Schemes of Soil Conservation in the catchments of River Valley Projects (RVP) and Integrated Watershed Management in the catchments of Flood Prone Rivers (FPR) were continued during the Eighth Plan. Animal Husbandry and Dairying 4.1.17 There has been a considerable improvement in the production of major livestock products, i.e., milk, egg and wool during the Eighth Plan Period. The milk production witnessed a significant growth of 4.5 % per annum to reach the level of 68.6 million tonnes during 1996-97. This has increased the per capita availability of milk from around 180 gm. per day in 1991-92 to 201 gm per day in 1996-97. The step-up in the production of milk has been attributed to the intensified activities particularly, in improvement of genetic-stock through cross-breeding, effective control of diseases and Operation Flood Programmes which strengthened the cooperative institutions and infrastructure facilities. The poultry subsector has also made significant progress due to research and development activities. The egg production which was at the level of 22 billion nos. during 1991-92 increased to 28.2 billion nos. during

1996-97. The per-capita availability of eggs increased from 25 to 30 per annum, for the same period. The wool production has increased from 416 lakh kg. in 1991-92 to 443 lakh kg. at the end of the Eighth Five Year Plan. Though the production of major livestock products during the Eighth Plan showed an increasing trend but their targets have not been realised. Fisheries 4.1.18 The country has a vast and varied fishery resources both marine and inland. The total fish production potential in the country has been estimated at 84 lakh tonnes. The total fish production has increased from 41.57 lakh tonnes in 1991-92 to 53.50 lakh tonnes in 1996-97 registering an annual average growth rate of about 5 % during the Eighth Plan. The fish seed production has also increased from 12,203 million fry to 15,700 million fry for the same period. There has been a significant increase in the export of marine products both in quantity and value terms. This has increased from 1.39 lakh tonnes (valued at Rs.893 crore) in 1991-92 to 3.78 lakh tonnes (Rs.4121 crore) in 1996-97. Agricultural Research and Education 4.1.19 The technological advances made during the Eighth Plan have helped to improve production of various crops. The accelerated pace of varietal improvement activities lead to development of over 550 high yielding varieties of different crops. A number of them had in-built resistance to various biotic and abiotic stresses, providing the much needed insulation to crop production. One of the major achievements under foodgrain crops is the release of hybrid varieties of rice for commercial cultivation in different States. In the case of oilseeds, hybrids have been developed, especially in castor seed and sunflower which helped in increasing the productivity of these oilseeds. In the case of maize, three superior hybrids having cold tolerance have been identified and for cotton, new hybrids have been released for cultivation in Punjab, Haryana and Rajasthan. In plant protection, the All India Coordinated Research Project on Biological Control laid more emphasis on biological control of insect- pests. The Integrated Pests Management (IPM) approaches have been worked out for the major nematode pests in a number of crops. During the Eighth Plan period, a number of improved breeds of cattle and poultry such as Frieswal and CARI-Gold were also evolved. Research activities in the fisheries sector were also intensified. There has also been a progress in fisheries research. Ninth Plan Focus and Strategy STRATEGY TO ENSURE FOOD SECURITY Doubling food production. Increase in employment & incomes. Supplementary /sustained employment and creation of rural infrastructure through poverty alleviation schemes. Distribution of foodgrains to the people below poverty line.

4.1.20 The agricultural development strategy for the Ninth Five Year Plan is essentially based on the policy on food security announced by the Government to double the food production and make India hunger free in ten years. Food production will include not only foodgrains i.e. rice, wheat, coarse cereals and pulses but also all major food items including oils, sugar, fruits & vegetables, milk, egg & meat and fish. The Ninth Plan accordingly, envisages operational strategies and specific programmes/activities to substantially increase the supply of various food items so that the entire domestic demand for these items is comfortably met and some surplus for exports also become available. The development strategy to be pursued in the medium term has been consciously int erwoven with the countrys food security concerns.

4.1.21 Food security is to be interpreted to mean adequate availability of basic food items particularly, foodgrains in the country as a whole and also availability of adequate purchasing power to meet the food requirements at the household level. Accelerated agricultural development based on increase in productivity and income would meet both these elements of food security. Hence, a strategy for food security would encompass the essential components of availability, with a focus on those living below the poverty line as well as the deficit and inaccessible regions of the country. 4.1.22 A three pronged strategy will be followed to meet the basic food requirements of all:

i. ii. iii.

Increase in overall employment and incomes by raising farm productivity and through the growth of other economic activities in the rural areas. Provision of gainful supplementary employment through poverty alleviation schemes such as JRY, EAS. These would generate additional employment in the short run but would also help in the creation of durable rural infrastructure for more sustained employment over time. Distribution of foodgrains through public distribution system at concessional prices to those living below the poverty line.

4.1.23 In order to provide access to the poor to food at prices they can afford, a Targeted Public Distribution System (TPDS) has been introduced. Under this, 10 kg of cereals are provided per capita per month to those living below the poverty line, at half the central issue price. This too would create additional demand for cereals. 4.1.24 Poverty eradication and generation of productive employment in the growth process are at the top of the Governments agenda. It is recognised that greater productive employment in the growth process will take time to materialise. Lest, a large proportion of the rural poor are left out of growth process, there is need for continued state intervention for poverty alleviation. The resources made available under poverty alleviation programmes and funds provided for old age pension, maternity benefit and family benefit targeted to the poor under the National Social Assistance Programme would provide additional incomes to the poor for purchase of essential food items. 4.1.25 The target of new strategy is to double the food production in the next decade to meet the consumption requirement of the growing population and to make India hunger free. However, it is neither possible nor required to double the foodgrains output of each item or even the group of items in the food basket. In fact, an exercise done to estimate the food requirement suggests that production of 300 million tonnes of foodgrains with an increase in horticulture, livestock and fishery production should be more than adequate to meet the food and nutritional requirement and also leave an exportable surplus of about 5 million tonnes of foodgrains. 4.1.26 In view of the preponderance of the poor in the rural areas, household level of food security can be achieved only through a sustained and rapid increase in productivity growth in the agriculture sector in terms of value added per worker. The pattern of value addition in agriculture is such that this magnitude of income growth of the poor is unlikely to occur from the expanded output of foodgrains only. Rapid diversification towards high value products, in both crop and non-crop sectors, is essential both to meet nutritional needs and to generate adequate incomes for the rural poor. 4.1.27 A production target over 300 million tonnes for the estimated population of over a billion may lead to diversion of area from other crops like oil seeds, pulses, fruits and vegetables towards cereals. The diversion may not be desirable as demand for these items far exceeds, the supply and higher imports may mean higher prices. Further, excess production of cereals may depress prices and lead to income losses to farmers, large scale procurement and storage of surplus production may also not be feasible. Therefore, the target for foodgrains production has been fixed at 300 million tonnes (Rice 130 million tonnes; Wheat 109 million tonnes; Coarse cereals including Maize 41 million tonnes; pulses 20 million tonnes) by 2007-08. Foodgrains production is expected to increase at an annual rate of 4.5 % per annum

during the ten year period. While the animal husbandry and dairy development is targeted to achieve a growth rate of 6.2 % that of fisheries sector is expected to register a growth rate of 5.7 % per annum. With these targeted growth rates, the production of milk and fish is expected to reach the levels of 130 million tonnes and 9.6 million tonnes, respectively by 2007-08. Regionally differentiated strategy AGRO-CLIMATIC BASED PLANNING FOR: High Productivity Zone Low ProductivityHigh Potential Zone. Low Productivity Zone. Ecologically Fragile Regions.

4.1.28 In order to achieve the goals of doubling the food output and alleviation of hunger, a regionally differentiated strategy based on agro-climatic regional planning which takes into account agronomic, climatic and environmental conditions will be adopted to realise the full potential of growth in every region. The agriculture development strategy will be differentiated by broad regional characteristic of agroeconomic situation. The thrust will be on ecologically sustainable use of the basic resources such as land, water and vegetation in such a way that it serves the objectives of accelerated growth, employment and alleviation of hunger. High Productivity Zone (North-West & Coastal region) 4.1.29 The high productivity zone is characterised by either high irrigation-low rainfall or low irrigation-high rainfall situation, spread over 103 districts of the North-West and coastal areas including Andhra Pradesh and Tamil Nadu. Here, the thrust will be on diversification of agriculture towards high value crops through creation of relevant infrastructure and establishment of strong linkages with agro-processing industry and exports. 4.1.30 In this Zone basic infrastructure for accelerated food production is already well developed. Some of the districts in this region have witnessed significant productivity growth and realised 8 to 10 tonnes of paddy per ha. In some of the districts where the growth of productivity has reached a plateau, the requirement is for new seed varieties and better water management including large scale use of sprinklers to avoid water logging and salinity problems. The latest research of ICAR and the SAUs on production technology including crop management will be implemented in the high productivity districts. The intensity of agricultural input will have to be increased particularly of chemical fertilizers along with green manure and bio-fertilizers. Even in this zone, there are considerable variations in productivity per ha. and input use for crop production with potential for increasing output. 4.1.31 During the next decade, efforts will be made to step up fertilizer application in all the districts where it is low to reach the level of 200 kg/ha in a phased manner. The increased utilisation of chemical fertilizers will be accompanied by complementary use of farm yard manure, compost, green manure and bio-fertilizers. A similar approach will be followed for augmenting irrigation facilities. All the districts in the zone will have assured irrigation covering over 90% of the gross cropped area (GCA). Fertilizer use is positively co-related with irrigation. Low Productivity- High Potential Zone

4.1.32 In the Low Productivity - High Potential Zone which cover about 181 districts in the country, the productivity is low despite abundant water availability and good soil. This zone would include Eastern Madhya Pradesh, Central and Eastern Uttar Pradesh, the Bihar Plains, Assam, West Bengal and some parts of other States. The strategy for this region will be to achieve the productivity levels of high productivity states of Punjab and Haryana. 4.1.33 The production strategy for this region would focus on flood control, drainage management, improved irrigation facilities particularly, minor irrigation and a better input delivery system supported by extension. The fertilizer application will have to be substantially stepped up and the gross irrigated area in this region to be increased to cover at least 50% of the GCA of the districts. 4.1.34 The average fertilizer consumption in the vast majority of the districts in this zone is very low and in over 90 % of the districts the per hectare consumption is less than 100 kg. Here, the urgent need is to step up fertilizer consumption in the first category districts to the level of the second category and in the subsequent phases these districts should catch up with those of the high productivity zone. Along with chemical fertilisers, the use of organic manures and bio-fertilisers will also be promoted for soil health. 4.1.35 Minor irrigation holds the key for this region and there is considerable ground water potential. About one million tubewells will be sunk in this zone which would irrigate about 4.0 million ha. Large scale adoption of drip irrigation and sprinkler irrigation will be taken up in this zone. Low Productivity Zone(Central Plateau Region) 4.1.36 In the Central Plateau region covering 79 districts, the productivity is low because of water scarcity. Here, the emphasis will be on development of efficient water harvesting and conservation methods and technologies, suitable irrigation packages on watershed approach and appropriate farming system which economise on water-use. 4.1.37 The basic aim of various land and water development programmes in this region will be to enable the farmers to obtain at least one good crop in an agricultural year. In the case of paddy the target should be to obtain a yield of about 3-4 tonnes/ha. and for wheat about 2.5 to 3.0 tonnes/ha. It is possible to obtain 3.0 tonnes/ha of maize with appropriate varieties as available in Karnataka. 4.1.38 Water harvesting structures and conservation works are of prime importance in watershed development. The cost effective indigenous method of water harvesting through check dams etc. will be supplemented by the use of drip and sprinkler irrigation. Apart from deep tubewells, shallow tubewells, open dug-wells and tanks/ponds which help in percolation and recharge of ground water will be emphasised. Regular desilting and redigging of such tanks under rural employment programmes should be taken up. About 10 million ha. will be brought under scientific treatment for soil and water conservation during the Ninth Plan period. 4.1.39 Fertilizer consumption is very low in this region because of water scarcity. For higher intake of chemical fertilizers, the urgent need is to tap ground water potential wherever available for crop production. Million wells Scheme(MWS) can make useful contribution. Ecologically Fragile Regions including Himalayan & Desert Areas 4.1.40 Development strategy for the fragile Zone has been spun around allied sectors such as animal husbandry, fisheries, horticulture and plantation. 4.1.41 On the basis of existing irrigation facilities and the level of fertilizer consumption in various agroeconomic zones, about 212 districts have been identified for priority action for intensifying irrigation facilities and yield raising inputs including chemical fertilisers for the accelerated growth of food output It

is also planned that diversification and modernisation of various sub-sectors of the agricultural sector would gain momentum in the Ninth Plan and the dynamics of agricultural growth would emanate from growth in non-foodgrain sectors, e.g. cotton, oilseeds, sugarcane, fruits and vegetables, spices, plantation crops etc. along with the development of fisheries, animal husbandry and dairying. Policy Thrust and Key Elements of Growth Strategy THRUST AREAS Conservation of land, water and biological resources. Rural infrastructure development Development of Rainfed agriculture. Development of minor irrigation. Timely and adequate availability of inputs. Increasing flow of credit Enhancing public sector investment Enhanced support for research. Effective transfer of technology Support for marketing infrastructure Export promotion.

4.1.42 Within the broad frame work of Plan for doubling food production and making India hunger free the Ninth Plan will aim at achieving the specific objectives of sustainability of employment generation, food and nutrition security, equity and poverty alleviation. Efforts will be made to achieve a growth rate of 4.5 % per annum in agricultural output in order to make a significant impact on overall growth and poverty alleviation. The emphasis will be on raising the capabilities of small peasants and promoting sustainable agricultural systems, while at the same time conserving and maximising the value from scarce resources, water and land. Infrastructure development will be given the highest importance. Emphasis will also be on minor irrigation by harnessing ground water resources. Timely and adequate availability of inputs will receive special attention. The regional programmes will be formulated in such a manner as to ensure provision of inputs to the farmer, particularly in the remote, hilly, backward and tribal areas. Agricultural credit is a crucial input and it will receive special attention. The programmes relating to land reforms would be strengthened to raise agricultural growth and help the poor. Efforts will be made to increase public investment during the Plan period. In every district, the Rural Infrastructure Development Fund (RIDF) will be used to promote projects which encourage organisations of small farmers, artisans and landless labourers for skill upgradation,processing, transport infrastructure, quality improvement etc. Support to agricultural research will be enhanced and emphasis will be placed on biotechnology, microbiology, genetic improvement of crops including hybrid technology, genetic upgradation of animal resources, improvement of fish genetic stock and post-harvest technology, etc. Efforts will be made to accelerate the growth rates of allied sectors such as horticulture, including fruits and vegetables, fisheries, livestock and dairy. Agricultural exports will receive special attention as these have a lot of potential for increasing farm incomes and employment, besides earning foreign exchange. Co-operatives will be strengthened. Greater participation of women in agriculture than at present will be encouraged. Linkages with markets will be strengthened and agro-processing and agro-industries will be encouraged. 4.1.43 The Ninth Plan target is to achieve a growth rate of about 4.5 % per annum in agricultural output and production of 234 million tonnes of foodgrains by 2001-02. The main elements of the strategies to achieve these targets and objectives are discussed below: New Agriculture Policy

4.1.44 The Government is finalising a National Agricultural Policy which is set to make some major changes in farm practices. The policy will focus on the optimal use of land, water and genetic resources in a sustainable manner. It will include leasing of land, consolidation of land, the use of 80 million ha. of marginal and wastelands and community lands for agro-forestry and improvement of rural marketing infrastructure. The plan will be to create both cold storage and processing facilities close to the production centres in rural areas. Focus on Social Objectives FOCUS ON Raising Land Productivity in Eastern India. Recognition of Womens Rights in Land. Protection of Tribals Rights in Land

4.1.45 The strategies for agricultural development will focus on the social objectives of employment generation, food and nutrition security, gender equality, poverty alleviation and environmental sustainability. Towards these objectives, a special thrust will be given to raising land productivity in Eastern India and the arid-zones of peninsular India where the poor are largely concentrated. These regions require investment in minor irrigation, watershed development and general infrastructure as well as support to small and marginal farmers by way of timely credit, availability of inputs and seeds and market linkages. An attempt will be made to bring about effective coordination between agricultural programmes and rural programmes. Women's rights in land will be recognised and women will be given preference in group activities for land conservation and improvement. The need for land reforms and improvement of land records will again be brought into focus. Every effort will be made to protect the tribals' rights in land. 4.1.46 Technologies for integrated and appropriate agricultural systems will be developed and disseminated so as to emphasise that agriculture is not only a land and water using activity but also helps to conserve and regenerate land and water resources. The cropping pattern has to be appropriate to the nature of land, water and environmental resources. Agricultural Employment 4.1.47 The strategy of agricultural development should be such that it should have a significant impact on the reduction of rural poverty by the end of the Ninth Plan from the level of 37 % in 1993-94. The focus on the development of small and marginal farmers will have a direct impact on poverty. With its forward and backward linkages with other sectors, the accelerated agricultural growth targeted for the Ninth Plan should help reduce rural poverty considerably. 4.1.48 The elasticity of employment with respect to output in agriculture has declined over time, if the country as a whole is taken. It is generally observed that during the phase when agriculture is transforming from low productivity to high productivity operation, labour absorption is very high, though at a highly developed stage additional labour absorption stops and elasticity gets reduced to almost zero. The Ninth Plan focuses on raising productivity in the low productivity regions of Eastern and peninsular India. In this process, there will be considerable generation of additional employment. The emphasis will be on high employment elasticity activities like animal husbandry, fisheries, horticulture, fish canning and preservation, tobacco products, cotton ginning etc. Increase in cropping intensity would also lead to an increase in the employment prospects in agriculture. The strategy on employment would also encourage rural non-agricultural employment so that the burden on agriculture would be reduced over time. Agricultural Research and Technology

4.1.49 For agricultural research and education, the country has a strong national agricultural research system. Today there is a network of 49 research institutes, 30 national research centres, 10 Project Directorates, 28 State Agricultural Universities, one Central Agricultural University and a large number of All India Coordinated Projects involving more than 24,000 agricultural scientists and teachers. The future economic and social development is in considerable measure dependent upon the technological improvements in agriculture. A massive application of science and technology would enable Indian agriculture to face the serious challenges of food security and ensure a place for value added Indian agricultural products in the global markets. There are immense opportunities offered by technological revolutions in the field of molecular biology, biochemistry, physiology, Geographical Information System, systems analysis, revolution in informatics, remote sensing etc. The objective is to tap the potential of science and technology to improve the living conditions of the poor. It is increasingly difficult to obtain any sizeable incremental production from the conventional Green Revolution areas. For the second Green Revolution, it is necessary to make the grey areas green. Hence, a major support for the rainfed areas, especially in Eastern and arid peninsular India would be necessary. Public sector research and technology missions (as for instance the mission on oilseeds) on various crops would play a crucial role in improving the crop production. How to reduce the yield gap between the lab and the field, particularly in the case of dryland crops is an important challenge for agricultural research & technologies. Supportive Environment 4.1.50 The country has 106.6 million agricultural land holdings. The holdings of small and marginal farmers together constitute around 80 % of the total holdings and their average size is less than one hectare. A farmer takes his or her own decisions about cropping pattern and other production activities. The Government's role is to help build a supportive environment to increase production and productivity in the form of market intervention, agricultural research, public investment in irrigation and infrastructure, credit and marketing for agricultural export besides creating and strengthening institutions like cooperatives which support agricultural activities. Infrastructure Development 4.1.51 Infrastructure development in the Eighth Plan has fallen short of the targets. This is partly due to the reliance that was placed on private sector investment, which did not materialise in adequate measure. Infrastructure includes irrigation, electricity, agricultural research, roads and communication, markets and new technology. The public sector investment in irrigation has been stagnant or declining since the mid1980s. Efforts will be made to increase public investment in agriculture. The private investment would also increase along with public investment since there is complementarity between the two. Developing roads and agricultural markets in the rural areas is important for the farmers to sell their products. This is also important for food security because public and private trade cannot operate efficiently without good infrastructure. Accessibility of remote areas is also dependent on transport linkages. Agricultural Investment 4.1.52 Higher investment in agriculture and rural infrastructure is a necessary condition for increasing agricultural growth. Government has a role in not only raising public investment but also inducing private investment. Efforts will be made during the Ninth Plan to increase public investment and encourage private investment in agriculture. 4.1.53 The public sector plays a crucial role in providing the investment for infrastructure like irrigation, electricity, agricultural research, roads and communications. Simultaneously, there is a need for providing incentives for the private sector to invest in a number of agricultural activities. Investment in minor irrigation by the farmers has already picked up in the eastern region during the Nineties. The scope exists for increasing private participation in seed industry, particularly in the non-cereal crops. There is a need to review some of the restrictions on storage, marketing and movement particularly at the State level so that

the farmers can avail of better opportunities. This is also important for attracting investment in many activities. 4.1.54 Irrigation development and water management are going to be most crucial for increasing agricultural production and productivity. For increasing the efficiency of irrigation projects, there is a need for institutional reforms. As suggested by the Committee on Pricing of Irrigation Water, the effective involvement of farmers in management is essential for improving the operational efficiency and financial viability of public irrigation systems. During the Ninth Plan, the Government would aim at encouraging greater community participation in irrigation management for bringing about greater awareness of the need for judicious utilisation of water. Community participation in watershed development and regeneration of land and water resources will have to be promoted. Credit Availability 4.1.55 Credit is an important input for increasing growth in agriculture. For achieving a growth rate of 4.5 %, the rate of growth in agricultural credit should be higher than that during the previous Plan periods. A strong, viable and professional system of credit disbursal is essential for meeting the emerging credit demand on time and adequately. Credit support needs to be increased for traditional sectors like minor irrigation, farm mechanisation, rainfed farming, wasteland/forestry, dairy and other animal husbandry activities and also for crop production. In addition, the emerging scenario provides vast scope for diversification of activities under horticulture, mushroom, floriculture, fishery, animal husbandry and sericulture as well as agro-processing, storage and the use of advanced technologies like tissue culture, drip irrigation, green-house etc. All these activities need more credit during the Ninth Plan. Efforts will be made to change the legal and administrative system in order to revitalise the co-operative credit structure and enable the system to respond adequately and effectively to the emerging needs of the users and the markets. Land Reforms 4.1.56 A proper implementation of land laws and policies is essential in order to restructure the agrarian economy in a way conducive to higher rates of agriculture growth with greater equity in the distribution of gains from it. All possible efforts would be made to detect and redistribute the surplus land and to enforce the ceiling laws with firmness. 4.1.57 Tenancy reforms would be taken up in States characterised by semi-feudal modes of production. Absentee landlordism must be eliminated by plugging the legal loopholes, tightening the implementation machinery and providing for speedy adjudication of disputes in revenue courts. Rights of tenants and sharecroppers need to be recorded and security of tenure provided to them. This alone would provide incentive for increasing investment in agriculture, as experience in certain parts of the country has shown. Preference should be given to poor, especially women with respect to wastelands and common property resources. Consolidation of land holding should be expedited but only with the active involvement of the village people and the Panchayat Raj Institutions in order to allay fears of small and marginal farmers whose lands may be under consolidation operations. Updation of land record is a necessary pre-requisite of any effective land reform policy. The rural poor, the elected bodies and voluntary organisation should participate in the process of ensuring agrarian reforms. Agro-processing 4.1.58 There is a bright future for India in agro and food processing sector and for this purpose appropriate institutional arrangements will have to be made. Large scale processing would have to be selectively encouraged since such activities on small scale are often not viable. As the world's largest producer of milk, and second laragest producer of fruits and vegetables, India should focus on promoting processed agricultural products for export purposes. For increasing agricultural trade, encouragement would be given to infrastructural developments in terms of bulk storage and handling facilities at rail-

heads and sea-ports. For perishable commodities, fast track facilities and special cargo terminals at major air and sea-ports are essential. Foodgrains Self-Sufficiency at National Level 4.1.59 Foodgrain self-sufficiency refers only to the country as a whole and there is no need for self sufficiency at the State or regional levels. The States would be encouraged to produce crops according to their comparative advantage. Each region or State should use land to its best advantage. Towards a National Market 4.1.60 The domestic markets should be free and there should be a free movement of commodities. We must proceed towards a full national market by removing unnecessary restrictions. The free movement in the domestic markets would lead to movements of commodities from surplus regions to deficit regions. Terms of Trade 4.1.61 In recent years terms of trade for farm sector has shown some improvement as a result of various measures taken by the Government like announcing minimum support prices for the major agriculture commodities. As non-price factors are more important for raising the growth, the strategy should be to reduce the cost of production in order to make the agriculture more remunerative. Effective Price support to farmers 4.1.62 Wide fluctuations in farm prices cause undue fluctuations in income, more than the changes in the output. This depresses the prices received by the farmers and discourage his investments in yield raising infrastructure. The agricultural price policy followed by the Government, over the years, has contributed significantly to the creation of a remunerative and relatively stable price environment, which has induced the farmers to adopt new technology and increase production. It has also helped in the diversification of cropping pattern. While it is necessary to substantially improve input delivery system and target low intensity- high potential areas, it is also essential that farmers are assured of remunerative prices that offer a fair incentive for adoption of improved technology and scientific practices. It is absolutely essential that Minimum Support Prices (MSP)for major cereals should be announced well before the sowing season so that farmers are quite clear about the price expectations and the price policy performs its resource allocation function effectively. 4.1.63 The price support mechanism has also not been very effective in the Eastern States and paddy prices have ruled below the MSP level announced by the Government, on many occasions. All efforts to improve the production of rice in the eastern states will be meaningless if the farmers are not assured of MSP. A mechanism should be devised to monitor farm gate prices of various agricultural produce in all major producing Centres. Agriculture Marketing 4.1.64 The agricultural marketing infrastructure has not kept pace with the accelerated growth of production in the country. This has resulted in significant post harvest losses of agricultural produce. The Central Government has provided assistance for the creation of infrastructural facilities for marketing and for the setting up of rural godowns. During the Ninth Plan, the Panchayats will also be encouraged to involve themselves actively in creating marketing infrastructure at the rural level. Marketing extension, being a key factor in bringing desirable changes in attitude, skills and behaviour of the farmers, traders and consumers, the agricultural marketing extension will be strengthened. Direct marketing will be promoted in the interests of both the producers and the consumers.

4.1.65 The functioning of the agricultural markets particularly for fruits and vegetables will be improved to ensure fair and remunerative prices to the growers. The wholesale markets will be modernised with all basic infrastructural facilities for cleaning, grading, packaging, storage and also with electronic auction platforms. There is a need for establishment of cold chains, providing pre-cooling facilities to farmers, cold chains in the terminal markets and improving the retail marketing arrangements in the urban areas. Schemes will be formulated for promotion of available low cost technology in the form of fruit vending machines, expellers, grinders, packers, reefer vans, etc. to the educated rural and urban youth with appropriate package of assistance.. Rationalisation of Input Prices 4.1.66 There is a school of thought which emphasizes that the continuance of agriculture subsidies need a re-look as these are considered to be fiscally unsustainable and also encourage sub-optimal utilisation of resources leading to undesirable consequences like land degradation, water-logging, depletion of groundwater resources, etc. It is also argued that the subsidies crowd out the public investment in agriculture and, therefore, a time-bound strategy for rationalizing the agriculture input pricing structure by a proper and transparent method is required. However, it should be recalled that agriculture subsidies have played a very crucial role in improving the production and productivity and have contributed significantly to the countrys food security. All out efforts will be made to improve agricultural productivity and raise the farmers income with special emphasis on ensuring the supply of agriculture inputs such as seeds, fertilisers, irrigation, power, etc. in time and in adequate quantities. Efforts will also be made to targetting and selective focussing. Agricultural subsidies, where they are focussed on raising productivity, stabilising production and supporting the small and marginal farmers will have to be continued for some time. Environment and Sustainable Agriculture 4.1.67 It is a known fact that there is little scope for further expansion of the net sown area and that land scarcity will become an acute feature of the rural economy. Water is a precious national asset and there are several concerns regarding water resources in the country. Therefore, a judicious use of land and water resources will have to be the central concern during the Ninth Plan period and beyond for sustainability of agricultural growth. There has been a growing concern in recent years about the deteriorating conditions of soil health and water resources due to improper management and pollution. The deterioration in land and water resources has been in the form of land degradation, water logging and decline in water table. There is a greater need to have an integrated approach in the management of agricultural nutrients, chemicals and in taking effective measures to deal with the overall pollution problems. 4.1.68 There are several possible technologies and alternatives to reduce the use of chemicals in agriculture. These alternatives are not perfect substitutes to chemicals but adoption of these can substantially reduce the adverse impact on environment. Proper land and water management policies would reduce environmental degradation. Community and village institutions will be encouraged to participate in protecting natural resources from degradation. Programmes for regeneration of land and water resources will be strengthened. .Crop Production Strategies Foodgrains 4.1.69 Under the accelerated growth scenario for the Ninth Plan, with GDP growing by about 7 %, population growing by about 1.7 % and per capita income by about 5 %, the demand for foodgrains is expected to grow by 3.0 % per annum. Under this scenario, the estimated food requirements by the end of the Ninth Plan would be around 227 m.t. Against this the target for foodgrains production is fixed at 234 million tonnes for the terminal year of the Ninth Plan. To achieve this target, it is assumed that the area

under foodgrains would be 126 million ha. The targets show that India has to increase foodgrains production at least by 35 million tonnes during the Ninth Plan from the level of around 199 million tonnes in 1996-97. The large part of the incremental production will have to come from the rainfed areas. 4.1.70 To supplement the efforts of the State Governments in increasing crop production, various crop production oriented schemes have been implemented by the Central Government. Some special schemes for rice, wheat and maize were introduced during the Eighties. The Government has modified the cereals development schemes during the Eighth Plan by considering the overall development of prevailing cropping systems in different years. The modified schemes are Integrated Cereal Development Programmes (ICDP) for rice, coarse cereals and wheat-based cropping systems areas. 4.1.71 The ICDP-Rice was being implemented in the States largely following rice-based cropping system. The States covered under the scheme are: Andhra Pradesh, Assam, Arunachal Pradesh, Bihar, Goa, Kerala, Eastern Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Tamil Nadu, Tripura, Eastern UP, West Bengal and Union Territory of Pondicherry. 1200 blocks were identified in these States where the productivity of rice/cereals was less than the State/national average for implementation of the scheme. 4.1.72 The ICDP-Wheat was implemented in the States mainly following wheat-based cropping system. The States covered under the scheme are: Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Northern Rajasthan and Western Uttar Pradesh. 425 blocks were identified in these States where the productivity of wheat/cereals was less than the State/national average for implementation of the scheme. During the Ninth Plan, the emphasis will be on the rainfed wheat areas particularly in the central region. Over time, wheat production has been catching up with rice production. 4.1.73 The ICDP-Coarse Cereals was implemented during the Eighth Plan in the States largely following coarse cereals-based cropping system. Under the scheme, six States viz., Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Sikkim have been covered. The scheme was being implemented in 830 identified blocks where the productivity of coarse cereals was less than the State/national average. 4.1.74 Maize is one of the important cereals grown in the country. Besides, being a food crop, maize is also important from fodder, feed and industries points of view. The area under maize is about 6 million hectares with a production level of nearly 10.6 m.t. The average yield is only 1.7 tonnes per hectare which is very low compared to the world standard 4.1 tonnes per hectare. The area under high-yielding variety of maize is about 50 %. However, the area under hybrid seed coverage is less than 10 %. . The quality of Indian maize compares favourably with the best in the world. Keeping in view the importance of raising the yield of maize from the present level of 1.7 tonnes per hectare to at least 3 tonnes per hectare and to increase maize production by at least 10 million tonnes, two steps have been taken. These are: (1) upgradation of the All India Coordinated Research Project on Maize to Directorate of Maize Research in the ICAR and introduction of an Accelerated Maize Development Programme under the Integrated Cereal Development Programme based on coarse cereals cropping system approach. The research component is already at place and the accelerated programme, in a mission mode approach, would be made functional during the Ninth Plan. 4.1.75 The production of pulses has remained stagnant between 10 and 12 m.t. during the last three decades . The productivity and production of pulses is low due to its cultivation on rainfed, marginal and sub-marginal lands, high susceptibility to pest diseases and climatic aberrations, lack of genetic breakthrough, application of very low level of inputs by the farmers and diversion of area to other remunerative crops as and when irrigation facilities become available. In order to harness the best of production, processing and management technologies to accelerate pulses production, the programme of National Pulses Development Project (NPDP) was brought under the purview of Technology Mission on Oilseeds in 1990. The NPDP was being implemented in 25 States and Union Territory of A & N Islands. Under this programme, emphasis is laid on increasing the area through multiple and inter-cropping and increasing the yield per unit of area. Assistance under this programme is provided for key inputs. The

Integrated Cereals Development Programmes for rice, wheat & coarse cereals and NPDP project for pulses will be continued during the Ninth Plan. Oilseeds 4.1.76 There has been a steady increase in the production of oilseeds after the setting up of the Technology Mission in 1986. The aim of the Technology Mission has been to harness the best of production, processing and management technologies for achieving expeditiously self-reliance in oilseeds' production. Soyabean and sunflower have, of late, emerged as the oilseed crops having major growth potential. With a view to augmenting the availability of edible oils, the cultivation of oil palm under irrigated conditions was initiated by the Department of Bio-technology in Andhra Pradesh, Karnataka and Maharashtra. Subsequently, it was implemented as a Technology Mission in the name of Oil Palm Development Programme (OPDP) in 11 states. These programmes will be continued during the Ninth Plan. Technology Mission on Cotton 4.1.77 The productivity level of cotton in India does not compare favourably with productivity levels attained in many of the major cotton growing countries of the world. The world average of cotton yield is well over 550 kg per hectare whereas in India, it is around 266 kg per hectare. There are a number of constraints from production to processing stages. Therefore, there is a need for evolving and applying technological improvements at several stages of cotton production and processing. The Technology Mission on Cotton proposed in the Ninth Plan will give a major thrust to raise production, productivity, as well as post harvest marketing and processing of the produce. Ministry of Agriculture and Ministry of Textiles are being associated for its implementation, with the Department of Agriculture as nodal agency. Sugarcane 4.1.78 The area under sugarcane is 4 million ha. and the average productivity is around 66 tonnes per ha. The production of sugarcane is expected to increase from 277 million tonnes in 1996-97 to 336 million tonnes by the end of the Ninth Plan at an average growth rate of 3.91 %. In water scarce area increase in area under sugarcane needs to be discouraged. In the State like Maharastra, sugarcane cultivation through sprinkler irrigation is taken up which is a welcome step.

10th Five Year Plan

http://planningcommission.gov.in/plans/planrel/fiveyr/10th/volume2/v2_ch5_1.pdf

11th Five Year Plan

http://planningcommission.gov.in/plans/planrel/fiveyr/11th/11_v3/11v3_ch1.pdf