1 / 50

Emerging Trends in Indian Agriculture: Challenges, Possibilities and Solutions

Emerging Trends in Indian Agriculture: Challenges, Possibilities and Solutions. Vijay Paul Sharma, Chairman Commission for Agricultural Costs and Prices (CACP) Ministry of Agriculture & Farmers Welfare Government of India Email: chairman-cacp@nic.in. Presentation Outline.

pbowman
Télécharger la présentation

Emerging Trends in Indian Agriculture: Challenges, Possibilities and Solutions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Emerging Trends in Indian Agriculture:Challenges, Possibilities and Solutions Vijay Paul Sharma, Chairman Commission for Agricultural Costs and Prices (CACP) Ministry of Agriculture & Farmers Welfare Government of India Email: chairman-cacp@nic.in

  2. Presentation Outline • Overview of Trends and Patterns in Indian Agriculture: Major Drivers • Key Challenges & Opportunities in Indian Agriculture • Policy Options and Strategies to Accelerate Agricultural Growth

  3. EMERGING TRENDS IN INDIAN AGRICULTURE

  4. Performance of Agriculture • Record Production in 2016-17 • Cereals – 250.98 Million Tonnes • Pulses – 22.4 Million Tonnes • Oilseeds – 32.5 Million Tonnes • Record Production of Horticulture Crops • Fruits – 92.8 Million Tonnes • Vegetables – 175.2 Million Tonnes Source: DAC&FW

  5. Performance of Agriculture • Livestock Sector • Largest Milk Producer – 155.5 Million Tonnes • Fish Production • 2nd Largest Producer (10.8 Million Tonnes) • Agri-Exports – ₹2.35 Lakh Crores • Growth in GVA from Agriculture & Allied Sectors – 4.9% in 2016-17 (0.7% in 2015-16)

  6. Structural Transformation Still Single Largest Employer in the Economy????? • Employs about half of Workforce • 138.3 Million Farming Households Source: CSO (2014)

  7. Changing Composition of Indian Agriculture:Rising Importance of High-Value Sub-Sectors

  8. VALUE OF OUTPUT FROM AGRICULTURE TE1993-84 TE2014-15 High-Value: From <40% to about 50% Source: CSO (2016)

  9. Major Drivers of Change:Demand-Supply

  10. Higher Disposable Income Expenditure on Non-Food Items Technology & Infrastructure Rising Demand for High-Value Agri. Products Drivers of Change Changing Demographics • 2/3rd Population <35 yr • ingUrbanization Increasing Trade Opportunities

  11. Composition of Consumer Expenditure: Rural Source: NSSO (2013)

  12. Composition of Consumer Expenditure: Urban Source: NSSO (2013)

  13. Diversification of Indian Diets: Rural Consumers High-Value: From <40% to >50% Source: NSSO (2013)

  14. Diversification of Indian Diets: Urban Consumers High-Value: From about 50% to >60%

  15. Expanding Agricultural Trade Opportunities Source: GoI (2017)

  16. MAJOR CONSTRAINTS FACING INDIAN AGRICULTURE

  17. ing & Fragmenting Farms Competition for Land Low Value-Addition & Poor Post-Harvest Infrastructure Major Constraints/Issues Rising Imports of Edible Oils & Pulses Low Prices Availability of Labor & Rising Wages Poor Access to Technology, Inputs, Services & Markets Land Tenure Systems Lack of Irrigation Facilities High Risks; Low Productivity; High Yield Gaps Climate Change?? Institutional Bottlenecks

  18. Marginalization of Farms & Swelling Bottom: Challenge of Linking Smallholders with Modern Markets/Food Chains Av. Size (ha): 2.28 1.84 1.55 1.33 1.15 Source: GoI (2014)

  19. Farm Size: Economic Viability Source: GoI (2014)

  20. Competition for Land: Agriculture & Non-Agri. Uses Source: MOA&FW

  21. Lack & Inefficient Use of Irrigation Facilities Low Coverage of Irrigation (48%) Maharashtra (18%); Jharkhand (15%) Punjab (99%), Haryana (89%) Inefficient Use of Water Resources Low Cropping Intensity - 141% <120% in Odisha, Jharkhand, Chhattisgarh >185% in Punjab, Haryana, West Bengal Source: GoI (2016)

  22. Low Growth & High Fluctuations in Agriculture Source: CSO (2017)

  23. LOW YIELDS & HIGH YIELD GAPS:Role of Technology & Extension Services

  24. High Yield Gaps - Wheat Source: ICAR & DAC&FW

  25. High Yield Gaps - Gram Source: ICAR & DAC&FW

  26. High Yield Gaps - Tur Source: ICAR & DAC&FW

  27. High Yield Gaps – Rapeseed & Mustard Source: ICAR & DAC&FW

  28. LACK OF AWARENESS ABOUT MSPs & QUALITY NORMS (FAQs)

  29. Low Awareness about MSP Less Coverage of Procurement Operations (Few States/Crops) Market Prices < MSP in some Crops/ Regions Source: NSS Report No.573: Some Aspects of Farming in India, 2012-13

  30. Paddy & Wheat Production & Procurement: TE2016-17 Rice Wheat Source: FCI (2017)

  31. Rice Price Trends: Prices Below MSP in Eastern States Source: http://agmarknet.gov.in/

  32. Market Prices Below MSP: Tur Source: http://agmarknet.gov.in/

  33. Market Prices Below MSP: Mustard Source: http://agmarknet.gov.in/

  34. Rising Imports of Pulses & Edible Oils

  35. Issues in Capital Formation & Agricultural Credit • Slow Down in Capital Formation in Agriculture • Declining Share of Public Investment • Significant  in Credit Flow to Agriculture (Rs. 1.25LakhCrore in 2004-05 to 9.6LakhCrore in 2016-17 • Interest Subvention Scheme – Crop Loans Only • Declining Share of Investment Credit • Regional and Inter-Farm Inequalities

  36. Decline in Gross Capital Formation (at 2011-12 Prices) Source: CSO (2016)

  37. Share of Public & Private Sector in Capital Formation Source: CSO (2016)

  38. Share (%) of Crop Loan & Term Loan in Agricultural Credit Source: NABARD (2017)

  39. Agency-Wise Share (%) of Credit Flow to Agriculture Source: NABARD (2017)

  40. DRIVERS OF GROWTH IN FARM INCOME

  41. Divert Surplus Labour from Agriculture: Skill Building

  42. III. POLICY INSTRUMENTS FOR AGRICULTURAL DEVELOPMENT The Four Pillars

  43. The Four Pillars of Agri. Development Infrastructure Technology Incentives Institutions • Strong R&D • HYV Seeds • Fertilizers • Farm Machinery • Irrigation Water Management • Value-Addition • Post-harvest Management • ………….. • Price Policy: MSP, Proc. & PDS • Subsidies: Inputs & Services • Trade Policy • ……………. • Extension Services • Land Reforms • Rural Financial Institutions • Risk Management Instruments • Market Information & Intelligence • Investment • Basic Rural Infrastructure Roads, Power, Communication • Irrigation • Post-Harvest & Market Dev • Agro-processing • ……….. INNOVATIONS

  44. Recent Initiatives • Focus on Irrigation and Water Management • Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Har Khet Ko Pani; Per Drop More Crop (Micro-Irrigation), Water Conservation, AIBP • Improve Crop Productivity & Increase Cropping Intensity • Improving Soil Productivity: Soil Health Card Scheme • Need to Promote Balanced Use of Fertilizers (N:P:K) & Micro-Nutrients • Risk Management • Pradhan Mantri Fasal Bima Yojna (PMFBY): Low Premium & More Coverage; 40% of Cropped Area to be Covered

  45. Recent Initiatives • Organic Farming: Paramparagat Krishi Vikash Yojana(PKVY) • Agricultural Market Sector Reforms • APMC Act Amendments – Establishment of Private Mandis; Delisting of Perishables; Contract Farming, Direct Producer-Consumer Linkages; Unified Single License and Single Point Levy of Market Fee • e-National Agriculture Market (e-NAM) • Dairy Processing and Infrastructure Development Fund: Corpus of Rs. 8,000 crores over 3 years

  46. Recent Initiatives • Increased Flow of Credit to Agriculture • Target for 2017-18: Rs. 10 Lakh Crore • Interest Subvention Scheme for Crop Loans • National Food Security Mission • Rice, Wheat, Pulses, Jute, Sugarcane, Cotton, Coarse Cereals; • 60% Allocation for Development of Pulses • National Mission on Oilseeds & Oil Palm (NMOOP) • Mission for Integrated Development of Horticulture • Digital Agriculture: Use of ICT - Kisan Call Centres, DD Kisan Channel, Radio, …….

  47. POLICY PRIORITIES TO ACCELERATE GROWTH

  48. Policy Priorities • Improve Crop Productivity • Increase in Public Investment in Agri. R&D, Extension, Rural Infrastructure, Post-harvest & Market Infrastructure including Storage & Processing • Bridge Yield Gaps • Accelerating Pace of Reforms in Lawsrelated to Land Markets and Marketing of Agri. Products • Promotion of Farmers’ Organization/Groups, SHGs • Effective Price & Procurement Policy • Create Awareness about MSP & Quality Norms • Effective Participation of States - Decentralized Procurement • Effective Use of Price Stabilization Fund Scheme

  49. Policy Priorities • Rationalization of Pricing of Inputs • Irrigation Water, Power, and Fertilizers (Imbalanced use of N:P:K and Micro-nutrient Deficiency) • Address Distributional aspects of Agri. Credit • Access to Small and Marginal Farmers & Poorer Regions • Strengthen Rural Branch Network • Significant Regional and Inter-class Inequalities • Better Targeting of Input Subsidies – Without hurting Small and Marginal Farmers

  50. Thank you !

More Related