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Agriculture, employment and growth in Madhya Pradesh Issues and Prospects

Agriculture, employment and growth in Madhya Pradesh Issues and Prospects. Presentation at National Conference Rabi Campaign 2006-07 New Delhi 14-15 September 2006. Agriculture: macro context. Impact of 1995 WTO AoA now visible Conclusion: rainfed, smallholder agriculture has been a loser

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Agriculture, employment and growth in Madhya Pradesh Issues and Prospects

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  1. Agriculture, employment and growth in Madhya PradeshIssues and Prospects Presentation at National Conference Rabi Campaign 2006-07 New Delhi 14-15 September 2006

  2. Agriculture: macro context • Impact of 1995 WTO AoA now visible • Conclusion: rainfed, smallholder agriculture has been a loser • Lower tariffs leading to high imports and fall in prices, yet input costs rose (e.g. Bt cotton) • Greater but unregulated role of private players and market forces • Retreat and loss of efficiency of public agencies; subsidies skewed towards GR areas • New market opportunities failed to materialise

  3. Agriculture: MP context • Negligible rise in productivity, wages • Farm/non-farm GDP composition 85:15 (Punjab, TN – 60:40) i.e. very little diversification in agriculture • No technological breakthrough in dryland crops (pulses, minor oilseeds) • Poor NH, rail and air infrastructure deter value addition investment • 2/3 of 6.7 mn farming households small and marginal; need for a different strategy than that followed in GR areas

  4. Towards a new agricultural strategy in MP • Understanding agriculture as part of overall natural resource management strategy: regionally diverse approach • Factoring in understanding of ‘vulnerability’ in agricultural planning • Role of institution building critical to collate risk, demand, productive capacities and marketing potential. • Addressing agriculture as part of diversified livelihoods development

  5. NSS Report on Farming (No. 499 of 2005) Item MP % AI % Would give up farming if had a choice 40 40 Farmer awareness about WTO 3 8 Unaware of crop insurance 61 57 Not a member of a coop 57 71 Exchange seed with other farmers 42 48 Replace seed after every 4 years 30 17 Receive advice on agriculture from extension worker 9 5.7 Receive advice on agriculture from other progressive farmers 19.1 16.7

  6. Kisan Varsh 2006-07 • Govt. to focus on all agriculture related issues in current year • Kisan Panchayat hosted by Chief Minister 30 August – major policy initiatives • Increasing investment rate in agriculture • Reducing input costs and improving profitability • Adding value to farmer produce

  7. State position - 2004-05

  8. Estimated area & prod. of Kharif crops 06 Soybean 45.49 Paddy 15.98 Cotton 6.66 Unit – Area lakh ha. Prod. Lakh tones

  9. Programme for Rabi 06-07 Unit – Area : lakh ha. Prod. : Lakh tones Rape & Mustard 9.00 ` Wheat 46.50 Gram 27.00

  10. 6 thrust areas • Credit • Trend towards doubling in 3 yrs: not enough given low investment base • Coop Revival Plan: Vaidyanathan Committee MoU with NABARD in Sept. 06 • Focus on mobilising rural savings; increasing range of financial services (savings instruments, insurance, pensions); reducing interest rate to 7% • CAS, MIS, HRD • Reach more SMF clients; increase investment rate

  11. 6 thrust areas….. • Seed • Target doubling current replacement rate of 8% in 3 years • Greater role for farmers in seed multiplication (seed villages, seed societies, producer cos.) • Joint production on govt. farms • Closer collaboration with private sector • Reformed certification process • Better lab-to-land network: leadership of JNKVV

  12. 6 thrust areas…. • Fertilizer • Increase in business capacity of PACS • Greater coordination with private trade • Supply chain review; strengthening • Raise state avg. to 100 kg/ha from present 70 kg/ha in 2 yrs • Soil testing labs at all 48 dist. HQs: 10 mobile labs this year • Pursue small packaging subsidy for tribal areas, SMF

  13. 6 thrust areas…. • Extension services • Need for strong local initiatives; decentralised model of ATMA in all dists • Multi-media IEC platform: kala jatha; film; TV; FM radio; internet • Kisan Pathshala (Farmer Field Schools) as local anchor of technology; intensive linkages • Technical backstopping by KVK, Ag. Colleges and SAU

  14. 6 thrust areas… • Marketing • Single license system in place; more Mandi Act amendments in pipeline • Identify further areas for liberalisation • Internet portal in 3 months for price discovery on ITC e-chaupal model • Contract farming models in place: Producer Co. most favoured and equitable for small producers

  15. 6 thrust areas • HRD • Massive capacity building and training drive for coop and agricultural field staff • MIS for better supervision and implementation; create credible data base • Technical support for project planning, expenditure control, coordination • Regional farming systems study; feedback for planning

  16. Other dept. initiatives to boost agricultural activity • One-time settlement of power dues; govt. paid off old dues upto Dec. 2003 • Khet Talab (Farm Ponds) scheme a great success; over 1.50 lakhs completed • Land records computerisation; campaign for mutations and boundary dispute resolution • Strengthening of PDS, ICDS and MDM to address vulnerability • Pilot testing of customised insurance products for SMF

  17. Some suggestions • GOI must support devpt. of alternate agri growth model for rainfed areas – help specially required in knowledge and capacity building of state institutions • Fund more research on dryland crop varieties; focus on PFR • Allot higher quantities of breeder of existing varieties; incentivise pvt. sector participation • Subsidise small packing of fertilizer for tribal areas • Provide freight subsidy in the form of viability gap funding to attract agro processing investment in backward areas

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