The Monthly Journal

Kurukshetra
MINISTRY OF RURAL DEVELOPMENT
Vol. 60 No. 6 Pages 52
April 2012
CHIEF EDITOR
Rina Sonowal Kouli

CONTENTS

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Union Budget 2012-13:

A Quick Review from Rural
Livelihood Perspective

COVER DESIGN
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Rural focus of budget 2012-13 G.Srinivasan

Dr. K. K. Tripathy

CRITICAL REVIEW OF THE UNION

BUDGET 2012-13 Dr. Yashbir Singh Shivay

Anshu Rahal

THE BUDGET AND RURAL DEVELOPMENT

Dr. Shahin Razi

17

Budgetary Allocation and its Utilization

MGNREGS-A Viewpoint

Dr. S.M Jawed Akthar

N.P. Abdul Azeez

19

Second Green Revolution:

Eastern States to Lead The Way

Dhurjati Mukherjee

23

APPROACHES TOWARDS TWELTH FIVE YEAR PLAN

NEED FOR FOCUSED ATTENTION
Arpita Sharma

29

Electricity Through Cogeneration-

A Promising Development

Dr. J. R. Meshram
Gargi Malik

33

FROM THE GROUND

Peoples Biodiversity Register and
Tapping Indigenous Knowledge A Case Study From Wayanad

Dr. Raju Narayana Swamy

36

Electricity from fruits and vegetables

S.Jothimani
M.Marimuthu
M.Paramasivan

42

CARBON CREDIT AN ENVIRONMENT MANTRA

Dr. R. Amsaveni
Mrs. S. Gomathi

45

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Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the
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Inside

he Union budget 2012-13 proposes to increase the total outlay for the
agriculture sector by more than 18 per cent. Announcing the budget proposals
the Finance Minister Pranab Mukherjee said that the agriculture sector would

continue to be a priority for the government.

However, there has been a 17.5 per cent reduction in the outlay for MGNREGA.
Several analysts have said that MGNREGA should improve quality of assets created
and also to bring about synergy between the scheme and the agriculture sector.
The hike in allocation for agriculture will benefit the farmers who have have also
been allowed to use their Kisan Credit cards at the ATM.
In addition, the target for agricultural credit has been raised by 100000 crore
rupees to 575000 crore rupees. Budgetary allocation for rural drinking water and
sanitation has been hiked by over 27 per cent, while allocation by Sarva Shiksha

Abhiyan increased by 21.7 per cent, in the budgetary allocation.

We discuss the implications of the budget proposals for the rural sector, including
the agriculture sector in this issue.

To enhance credit facilities to the rural sector the government has also
announced 10000 crore Rupees to the NABARD (National Bank for Agriculture
and Rural Development) for refinancing rural banks and help better for free flow
funding.
Bringing focus on agriculture, the Finance Minister declared revamping
of five missions to merge various activities into set of missions to address the
pressing needs of peasantry and to promote agricultural and rural development in
a holistic fashion. Thus the National Food Security Mission aims to bridge the yield
gap in respect of paddy, wheat, pulses, millet and fodder. The ongoing Integrated
Development of Pulses Villages, Promotion of Nutri-cereals and Accelerated Fodder
Development Programme would now become a part of this Mission.

Kurukshetra

April 2012

Rural focus of budget 2012-13

G. Srinivasan
- A welcome feature is that the interest rate of 4 per cent recommended by the National Commission of
Farmers headed by farm scientist and Rajya Sabha Member Dr. M.S.Swaminathan has been retained
for those who are prompt in repayment of loans contracted.
- The budgetary outlay for rural drinking water and sanitation is proposed to be raised from Rs 11,000
crore in the fiscal 2011-12 to Rs 14,000 crore

hat the prospects of Indian economy centre

mostly around the rural hinterland with
agriculture still accounting for livelihood
security of more than 80 per cent of the countrys
population in one way or another need no
reiteration. It is presumably this proposition that has
weighed in the mind of the Union Finance Minister
Mr. Pranab Mukherjee when he presented the UPA
government Budget in Parliament on March 16.
Recognising the underlying fiscal constraints and
the need not to spread the available resources too
thinly on a diverse range of progammes that do not
pan out the desired results, the Budget has made

some realistic calculations based on sound and

sustainable ground realities.
Thus in the case of agriculture, the fulcrum
for rural development in its entirety, there is no
new initiative but in order to help farmers access
to farm loans readily and adequately, the target for
agricultural credit has been substantially stepped
up to Rs 5.77 lakh crore during the fiscal 2012-13,
the inaugural year of the Twelfth Five-Year Plan
(2012-17). A welcome feature is that the interest
rate of 4 per cent recommended by the National
Commission of Farmers headed by farm scientist
and Rajya Sabha Member Dr. M.S.Swaminathan

April 2012

Kurukshetra

has been retained for those who are prompt in

repayment of loans contracted. Besides, the same
interest subvention on post- harvest loans upto
six months against negotiable warehouse receipt
would also be available so as to encourage the
farmers to keep their produce in warehouses.

NABARD
The Budget intends to allocate Rs 10,000
crore to National Bank for Agriculture & Rural
Development (NABARD) to set up a short-term
regional rural bank (RRB) Credit Refinance Fund
to enhance the capacity of RRBs to disburse
short-term crop loans to the small and marginal
farmers. In order to render kisan credit card (KCC)
an effective tool for making agricultural credit
available to the farmers, KCC scheme would be
modified to make KCC a smart card which could
be used at ATMs. In a bid to promote agricultural
research the Finance Minister has proposed to
allocate a sum of Rs 200 crore, besides putting
into operation a Government-owned Irrigation and
Finance Company to mobilise large resources to
fund irrigation projects. Farmers hail this move as
a salutary step provided the proposed firm focuses
on bolstering rainwater harvesting through Jal
Kunds, wastewater recycling and micro irrigation.

Green Revolution
It may be noted that among the benefits of the
earlier initiatives which are to be unified, mention
ought to be made of a modest start to bring the
green revolution to eastern India. The Budget has
augmented the allocation for this scheme to Rs
1000 crore from Rs 400 crore in fiscal 2011-12. In
outlining the agenda for agriculture, the Finance
Minister declared revamping of five missions to
merge various activities into set of missions to
address the pressing needs of peasantry and to
promote agricultural and rural development in a
holistic fashion. Thus the National Food Security
Mission aims to bridge the yield gap in respect
of paddy, wheat, pulses, millet and fodder. The
4

ongoing Integrated Development of Pulses Villages,

Promotion of Nutri-cereals and Accelerated Fodder
Development Programme would now become a
part of this Mission. He further said that National
Mission on Sustainable Agriculture including Micro
Irrigation is being taken up as a part of the National
Action Plan on Climate Change. The Rainfed Area
Development Programme is to be merged in this
Mission. The National Mission on Oilseeds and Oil
Palm would increase production and productivity of
oilseeds and oil palm, while in the new proposals,
the National Mission on Agricultural Extension and
Technology focuses on adoption of appropriate
technologies by farmers for improving productivity
and efficiency in farm operations. Alongside, the
National Horticulture Mission would now also
promote horticulture diversification including an
initiative on saffron.

Protein Supplement
The Budget outlined that the Mission for
Protein Supplement is being beefed up and with
a view to improving the productivity in the dairy
sector, an Rs 2242 crore project is being launched
with assistance from the World Bank. In order to
broaden the scope of production of fish to coastal
aquaculture, apart from fresh water aquaculture,
the outlay in 2012-13 is being augmented to Rs 500
crore, while adequate allocations are also being
ensured for poultry, piggery and goat rearing in
order to help rural people to bank on this subsidiary
livelihood practice.
For rural development, the budgetary
outlay for rural drinking water and sanitation is
proposed to be raised from Rs 11,000 crore in
the fiscal 2011-12 to Rs 14,000 crore in 2012-13
in order to fight the scourge of malnourishment
as weak sanitation coupled with unhygienic water
quality continue to plague the poor. As Pradhan
Mantri Gram Sadak Yojana (PMGSY) turned out
to be a triumphal scheme, the Budget has raised
the allocation to this important job-oriented and
rural-development programme by 20 per cent
Kurukshetra

April 2012

Panchayats
As the third tier of local bodies is crucial
for grassroots development, a major initiative
proposed in the Budget is to underpin Panchayats
across the country through Rajiv Gandhi Panchayat
Sashakitkaran Abhiyan (RGGPSA) to expand the
existing schemes for Panchayat capacity-building.
In consonance with the last years budget focus on
the development of backward regions, the Budget
has decided to carry the Backward Regions Grant
Fund scheme into the12th Plan with an enhanced
outlay of Rs 12,040 crore in 2012-13, an increase
of over 22 per cent over budgeted 2011-12 outlay.
This covers the State component which includes
projects in backward areas in Bihar, West Bengal
and Kalahandi-Bolangir-Koraput region of Odisha,
development projects for drought mitigation in
the Bundelkhand region and projects under the
Integrated Action Plan to expedite the pace of
development in selected tribal and backward
districts.

Infrastructure
The Budget makes a proposal to step up the
allocation under Rural Infrastructure Development
Fund (RIDF) to Rs 20,000 crore. As the farmers
mostly suffer for want of adequate storage
amenities with most of the produce getting rotten
and wasted, the budget has proposed to earmark
Rs 5000 crore from this enhanced allocation of
RIDF exclusively for fostering warehousing facilities
under RIDF. As rural women suffer for want of
adequate opportunities to express themselves in
various livelihood undertakings, the Budget has
proposed to step up the allocation to the subcomponent, Mahila Kisan Sashakikaran Pariyojana
under the National Rural Livelihood Mission (NRLM)
Kurukshetra

April 2012

by over 34 per cent from Rs 2914 crore in 201112 to Rs 3915 crore in 2012-13.Last year budget
announced the creation of a Womens Self-Help
Groups (SHG) development fund with a corpus of
Rs 100 crore. The Finance Minister announced in
2012-13 budget to provide Rs 200 crore more to
enlarge the corpus to Rs 300 crore. This fund will
also bolster the objectives of Aajeevika, i.e., the
National Rural Livelihood Mission by empowering
women SHGs to access bank credit. It is further
proposed to provide interest subvention to women
SHGs to avail loans up to Rs 3 lakhs at 7 per cent
per annum. WomenSHGs that repay loans in time
would get additional three per cent subvention,
reducing the effective rate to 4 per cent. The new
initiative, in the first phase, would focus on selected
600 blocks of 150 districts across the country,
including the Left Wing extremisms-hit districts.
Taking a broader canvas, the Union Budget
2012-13 has allocated Central Plan outlay to the
Department of Rural Development a massive
sum of Rs 73,175 crore to undertake various
special programmes for rural development,
rural employment, rural housing and roads
and bridges being managed by the Ministry of
Rural Development. Coupled with the enhanced
allocation to agriculture, the budget has chalked
out a refreshingly new path to translate the various
ongoing programmes into tangible benefits to the
farmers in general and rural people in particular.
In fine, as the Government assumes the economic
growth rate to go up from the estimated 6.9 per
cent in fiscal 2011-12 to 7.6 per cent based on the
various enabling measures put in place in the budget
for the economy to gain traction, the resultant
growth benefits would help harness resources in a
more purposive fashion to undertake development
works in rural areas with redoubled verve and
vigour, economists and analysts unanimously say.
(The author is a Senior Journalist based in
New Delhi)
5

by providing Rs 24,000 crore. This will definitely

improve connectivity in the States and bring them
into the mainstream of markets both in semi-urban
and urban conurbations.

Union Budget 2012-13:

A Quick Review from Rural Livelihood Perspective

Dr. K. K. Tripathy

he Economic Survey 2011-12, released

a day prior to the presentation of Union
Budget 2012-13 indicated that the Indian
economy is going to experience a slump in the
growth rate primarily due to the deceleration in
the growth of the Indian industry. While during
the two preceding years (2009-10 and 2010-11),
Indias Gross Domestic Product (GDP) grew by 8.4
per cent, the economic growth during 2011-12
was estimated at 6.9 per cent.
The Union Budget 2012-13 was presented
amidst uncertainties in the global economic
environment (especially, in the Eurozone),
prevailing weaknesses in the industrial activity,
rising fiscal deficits and growing cost of credit
along with weak domestic business environment.
In this backdrop, it was expected that the Budget
2012-13 would strive to bridge the development

deficits in the social sector not only by stepping

up public expenditure on the social sector
schemes/programmes but also by ensuring the
quality of expenditure backed by revamped
governance system at the grass-root level of their
implementation.

Addressing Growth Issues

The Indian economy has survived from the
global slowdown of 2008 and has witnessed a
resilient growth rate in GDP of around 8 per cent
during the last three years. However, an average
rate of 3.3 per cent growth during the 11th Five
Year Plan (2007-08 to 2011-12) in the agriculture
and allied sector indicates that Indian agriculture
has been entangled in a low growth equilibrium
trap and may not achieve the target of a 4 per
cent annual growth rate during the 11th Plan
period. Further, deceleration of agri and allied

Kurukshetra

April 2012

during 2010-11 to an estimated growth rate of

2.5 per cent during 2011-12) indicates the extant
vulnerability of the countrys agriculture.

Rural Livelihood
Pre-Budget

media

expectations

rightly

predicted the Governments stress on revamping

rural infrastructure, improving rural development
initiatives and enhancing substantially the outlays
for rural development.

The Budget 2012-13

has stressed on improving Indias agriculture,

taking steps for consolidating efforts on rural
development and social sectors including removal
of supply side bottlenecks in rural economy.
This marks a relatively high gross budgetary
support to agriculture than rural development.
The total plan outlay for the Department of
Agriculture and Cooperation is increased by 18.6
per cent from Rs. 9,262 crore during 2011-12 to Rs.
10,991 crore during 2012-13. The 2012-13 budget
allocation (Rs. 73,175 crore) for Department of
Rural Development has witnessed 1.25 per cent
reduction as compared to the budget estimates
of 2011-12 (Rs. 74,100 crore). The Mahatma
Gandhi National Rural Employment Guarantee
Act (MGNREGA) contributed 54 per cent of the
total budget allocation for Department of Rural
Development during 2011-12. During 2012-13,
the share of MGNREGA (Rs. 33,000 crore) has
been reduced to 45 per cent in the total budget
allocation for the department.

Rural Employment
The 2012-13 plan allocation for MGNREGA has
been reduced by 17.5 per cent whereas Aajeevika
(earlier National Rural Livelihood Mission) has
registered 34.35 per cent hike in budget allocation
in 2012-13 against the Budget Estimates of
2011-12.
Kurukshetra

April 2012

The enactment and implementation of a

right-based MGNREGA has undoubtedly marked a
paradigm shift from the existing wage employment
programmes. This is primarily to be achieved
by taking up project-oriented activities covering
works on water conservation/harvesting, drought/
flood control, plantation, land development, rural
connectivity, etc. During 2011-12, the revised
estimate for MGNREGA is pegged at Rs. 31,000
crore which is Rs. 9,000 crore less than the Budget
Estimate. This indicates that this wage employment
programme has stabilized in its operation and
absorption in rural areas. The budget estimate for
2012-13 in case of MGNREGA is kept at Rs. 33,000
crore. The need of the hour is to improve quality
of assets created and to bring about synergy
between MGNREGA and agriculture and allied rural
livelihoods. This endeavour will not only uplift the
under-privileged and socially and economically
vulnerable, but also support in making the
agriculture a viable occupation
As far as rural self-employment programme
is concerned, during 2012-13 Aajeevika will have
an outlay of Rs. 3,915 crore (including Rs. 351.50
crore allocation for North Eastern Region) against
the previous years outlay of Rs.2,914 crore. This
programme covers all aspects of self-employment
starting from organisation of the poor into selfhelp groups (SHGs) to building their capacities,
federating these groups for better targeting,
provisioning market infrastructure, credit/subsidy
linkage and skill up-gradation and technology
development. The target groups are the poor living
below the poverty line. Thus, the hike in the budget
outlay for Aajeevika was much-needed to help in
establishing a large number of micro-enterprises
in rural areas and to effectively achieve the goal of
poverty alleviation. A timely convergence between
Aajeevika and MGNREGA would help in extending
skill training to rural households living on unskilled
manual activities.
7

sector-growth by 4.5 per cent (from 7 per cent

It is well-documented that the provision of

adequate livelihood security to the economically
vulnerable sections of the country has not been
commensurate with the magnitude of resource
inputs of the series of poverty alleviation and
employment generation programmes since
independence. Aajeevika, that seeks to harness
the inherent potential of the rural poor by organising
them into small and cohesive groups and providing
requisite infrastructure support for their income
generation, needs to resolve various shortcomings
in
implementation
and
administrative
mismanagement which reduce the effectiveness of
the programme. The main problem areas requiring
policy attention are the coordination amongst
field level agencies, the appropriate selection of
economic activities, mapping skills and improving
skills and the promotion of quality SHGs and their
federations.

Rural Credit and Financial Inclusion

Recent rise in cost of credit not only impacted
the domestic industries but also added to the
overall agriculture cost of production. The target
set for agricultural credit is at Rs. 5.75 lakh crore
in the next year. This is 21 per cent higher than the
target fixed for 2011-12. The interest subvention
on short term crop loans at 7 per cent interest per
annum will continue in 2012-13. In addition, an
additional interest subvention of 3 per cent will
be applicable for non-defaulting farmers. This will
have a positive impact on the repayment behavior
of the millions of borrowing small and marginal
farmers. Modification of Kisan Credit Cards into
a smart and ATM enabled card and revamping
Regional Rural Banks will help in removing supply
side rigidities in one of the important agri-inputs
of Indian agriculture.

Conclusion
About two-thirds of the total countrys
population live on agriculture and allied activities
8

and stay in rural areas, the governments prime

objective has been directed towards ensuring
an inclusive economic growth where benefits of
economic growth are to percolate to the poor and
underprivileged. In this context, Union Budget
2012-13 entails the enhancement of agricultural
credit flow, revitalising agriculture extension,
training and research, providing employment
to the needy and creating durable agri-related
productive assets, ensuring empowerment of the
poor, bringing more children under the purview of
formal education and improving rural health care
initiatives.
The Union Budgets of the government during
2007-08 to 2012-13 had witnessed an impressible
improvement in the expenditure on priority social
sectors viz. education, health, water and sanitation,
irrigation, housing and employment which
have a direct and lasting impact on the human
development and overall economic growth.
Various studies and review reports on
Government sponsored development programmes
are unanimous regarding the implementation flaws
at the grass-root level. It is, thus, expected that the
Government has to strengthen its implementation
and monitoring mechanism to ensure financial and
operational sustainability. Post-Budget special and
targeted efforts are needed to resolve issues like
removing capacity constraints in the grass-root
level democratic institutions and promoting their
involvement in converging the benefits of various
development interventions and infrastructurebuilding initiatives aiming at poverty alleviation,
gainful employment generation and social
security.
(The author is an officer of Indian Economic
Service and is Director in the Ministry of Rural
Development. Views expressed are personal.
E-mail: tripathy123@rediffmail.com)
Kurukshetra

April 2012

CRITICAL REVIEW OF THE UNION BUDGET 2012-13

Dr. Yashbir Singh Shivay and Anshu Rahal
Plan Outlay for Department of Agriculture and Co-operation increased by 18 per cent i.e. from
Rs 17,123 crore in 2011-12 to Rs 20,208 crore in 2012-13.

Agriculture has been a way of life and continues

to be the single most important livelihood of the
masses. Agricultural policy focus in India across
decades has been on self-sufficiency and selfreliance in foodgrains production. Considerable
progress has been made on this front. Foodgrains
production rose from 52 million tonnes in 1951-52
to 244.78 million tonnes in 2010-11. The share of
agriculture in real GDP has fallen given its lower
growth rate relative to industry and services.

Kurukshetra

April 2012

However, what is of concern is that growth in the

agricultural sector has fallen short of the Plan
targets. During the period 1960-61 to 2010-11,
foodgrains production grew at a compounded
annual growth rate (CAGR) of around 2 per cent. In
fact, the Ninth and Tenth Five Year Plans witnessed
agricultural sectoral growth rate of 2.44 per cent
and 2.30 per cent respectively compared to 4.72
per cent during Eighth Five Year Plan. During
the current Five Year plan, agriculture growth is
estimated at 3.28 per cent against a target of 4 per
cent. The Approach Paper to the Twelfth Five Year
Plan emphasises the need to redouble our efforts to
ensure that 4.0 per cent average growth is achieved
during the Plan if not more. Without incremental
productivity gains and technology diffusion across
regions, achieving this higher growth may not be
feasible and has implications for the macroeconomic
stability given the rising demand of the 1.21 billion
people for food. Achieving minimum agricultural

ross domestic product (GDP) is estimated to

grow by 6.9 per cent in 2011-12, after having
grown at 8.4 per cent in preceding two
years. Slowdown in comparison to preceding two
years is primarily due to deceleration in industrial
growth and also due to intensification of debt crises
in Euro zone, political turmoil in Middle East, rise
in crude oil price and earthquake in Japan. Indias
GDP growth in 2012-13 expected to be 7.6 per cent
+/- 0.25 per cent.

growth is a pre-requisite for inclusive growth,

reduction of poverty levels, development of the
rural economy and enhancing of farm incomes.

are being implemented for enhancing agricultural

production and productivity in the country and
increasing the income of the farming community.

Major emphasis for agriculture sector

in Union Budget 2012-13

Rashtriya Krishi Vikas Yojana (RKVY)

Agriculture
including
allied
activities,
accounted for 14.5 per cent of gross domestic
product at 2004-05 prices, in 2010-11 as compared
to 14.7 per cent in 2009-10. Notwithstanding the
declining trend in agricultures share in the GDP, it
is critical from the income distribution perspective
as it accounted for about 58 per cent employment
in the country according to Census 2001. Hence
growth in agriculture and allied sectors remains a
necessary condition for inclusive growth. In terms
of composition, out of the total share of 14.5 per
cent that agriculture and allied sectors had in GDP
in 2010-11, agriculture alone accounted for 12.3
per cent, followed by forestry and logging at 1.4 per
cent and fishing at 0.7 per cent. Reasonable growth
in agriculture is important both from the nutritional
point of view as well as to control food prices and
overall headline inflation. Considering the importance
of agriculture in the Indian economy, Union Budget
2012-13 proposes to increase by 18 per cent from
Rs 17,123 crore in 2011-12 to Rs 20,208 crore in
2012-13 as the total plan outlay for the Department
of Agriculture and Cooperation. This step is a
praiseworthy and long awaited of the Honourable
Union Finance Minster for the overall growth and
development of the agriculture and allied sectors in
particular and inclusive growth in general.

Allocation of funds for the Major

Schemes / Programmes in Agriculture
Sector
Agriculture being a state subject, the primary
responsibility for increasing agriculture production,
enhancing productivity, and exploring the vast
untapped potential of the sector rests with the state
governments. However, in order to supplement
the efforts of the state governments, a number of
centrally sponsored and central-sector schemes
10
10

The RKVY was launched in 2007-08 with an

outlay of Rs 25,000 crore in the Eleventh Plan for
incentivizing states to enhance public investment
to achieve 4 per cent growth rate in agriculture and
allied sectors during the Eleventh Five Year Plan
period. The outlay for Rashtriya Krishi Vikas Yojana
(RKVY) has been increased from Rs 7,860 crore in
2011-12 to Rs 9,217 crore in 2012-13 Union Budget
by the honourable Finance Minister, Mr. Pranab
Mukharjee. It will have significant impact on
increased agricultural production and productivity
in the long run.

Initiative of Bringing Green Revolution

to Eastern India
The Green Revolution in Eastern Region is
waiting to happen and to realize the potential of
the region; last years initiative will be continued
in 2012-13 with a further allocation of Rs Rs1,000
crore in 2012-13 from Rs 400 crore in 2011-12.
The program would target the improvement
in the rice-based cropping systems of Assam,
West Bengal, Orissa, Bihar, Jharkhand, Eastern
Uttar Pradesh and Chhattisgarh. The initiative of
Bringing Green Revolution to Eastern India has
resulted in a significant increase in production
and productivity of paddy. States in eastern India
have reported an additional paddy production of
seven million tonnes in Kharif 2011, which is good
sign for second green revolution to be happening
in the near future.

Vidarbha
Intensified
Development Programme

Irrigation

Irrigation is one of the most important inputs

required at different critical stages of plant growth
of various crops for optimum production. The
Government of India has taken up augmentation
of irrigation potential through public funding and
Kurukshetra

April 2012

Accelerated Irrigation Benefit

Programme
The central government initiated the
Accelerated Irrigation Benefit Programme (AIBP)
from 1996-97 for extending assistance for the
completion of incomplete irrigation schemes. Under
this programme, projects approved by the Planning
Commission are eligible for assistance. Under the
AIBP, Rs 50,380.64 crore of central loan assistance
(CLA)/grant has been released up to 30 November
2011. As on 31 March 2011, 290 projects were
covered under the AIBP and 134 completed. During
2010-11, an irrigation potential of 566.24 thousand
ha is reported to have been created by states, from
major / medium / minor irrigation projects under
the AIBP. While the higher irrigation potential
would help augment production and productivity,
assured remuneration from such production is vital
for development of agriculture. Structural changes
in AIBP being made to maximise flow of benefit
from investments in irrigation projects. Allocation
for AIBP in 2012-13 stepped up by 13 per cent to Rs
14,242 crore. Irrigation and water resource finance
company being operationalsed to mobilise large
resources to fund irrigation projects.
A flood management project approved by
Ganga Flood Control Commission at a cost of Rs
439 crore for Kandi sub-division of Murshidabad
District was also announced by the honourable
Union Finance Minister in his Union Budget 201213 speeches.
Kurukshetra

April 2012

National Mission for Protein

Supplements
The consumption of foods rich in animal
protein and other nutrients has risen of late,
with demand growing faster than production.
To improve productivity in the dairy sector, a Rs
2,242 crore project is being launched with World
Bank assistance. The National Mission for Protein
Supplements was being launched in 2011-12 with
an allocation of Rs 300 crore. Mission for Protein
Supplement is being further strengthened and to
broaden the scope of production of fish to coastal
aquaculture, apart from fresh water aquaculture,
the outlay in 2012-13 is being stepped up to Rs 500
crore. Suitable allocations are also being made for
poultry, piggery and goat rearing. This is a timely
taken step by the Union Finance Minister in the
present increased demand driven era.

Agriculture Credit
Agricultural credit plays an important role in
improving agricultural production and productivity
and mitigating distress of farmers. Government has
taken several measures for improving agricultural
credit flow and bringing down the rate of interest
on farm loans. Initiative has been taken to provide
kisan credit cards (KCC) to all eligible and willing
farmers in a time-bound manner. The scheme
includes reasonable components of consumption
credit and investment credit within the overall
credit limit to provide adequate and timely credit
support to farmers for their cultivation needs. About
10.78 crore KCCs had been issued up to October
2011. KCC scheme will be modified to make KCC
a smart card which could be used at ATMs. Union
Finance Minister proposed to raise the target for
agricultural credit in 2012-13 to Rs 5,75,000 crore.
This represents an increase of Rs 1,00,000 crore
over the target for the current year i.e. 2011-12.
The interest subvention scheme for providing shortterm crop loans to farmers at 7 per cent interest per
annum will be continued in 2012-13. An additional
subvention of 3 per cent will be available to prompt
paying farmers. In addition, the same interest
11

11

is assisting farmers to create potential on their

own farms. Substantial irrigation potential has
been created through major and medium irrigation
schemes. While the higher irrigation potential would
help augment production and productivity, assured
remuneration from such production is vital for
development of agriculture. This year, under RKVY,
the honourable Union Finance Minister allocated
Rs 300 crore to Vidarbha Intensified Irrigation
Development Programme. This Scheme seeks
to bring in more farming areas under protective
irrigation.

subvention on post harvest loans up to six months

against negotiable warehouse receipt will also be
available. This will encourage the farmers to keep
their produce in warehouses.
In addition to the above-mentioned facility a
short-term RRB Credit Refinance Fund is being setup to enhance the capacity of Regional Rural Banks
to disburse short term crop loans to the small and
marginal farmers. Union Finance Minister proposed
in his Union Budget 2012-13 to allocate Rs 10,000
crore to NABARD for refinancing the RRBs through
this fund.

National Mission on Food Processing

The food processing sector has been growing
at an average rate of over 8 per cent over the past
5 years. In order to have a better outreach and
to provide more flexibility to suit local needs, it
has been decided that a new centrally sponsored
scheme titled National Mission on Food Processing
would be started, in cooperation with the State
Governments in 2012-13.

Storage Capacity and Cold Chains

The Government has taken steps to create
additional foodgrains storage capacity in the country.
Augmentation of storage capacity through private
entrepreneurs and warehousing corporations has
been fast tracked capacity will be eligible for viability
gap funding of the Finance Ministry. Creation of 2
million tonnes of storage capacity in the form of
modern silos has already been approved. Nearly
15 million tonnes capacity is being created under
the Private Entrepreneurs Guarantee Scheme, of
which 3 million tonnes of storage capacity will be
added by the end of 2011-12 and 5 million would
be added next year i.e. 2012-13.

Agricultural Research
Food security and agricultural development in
the coming decades would depend upon scientific
and technological breakthroughs in raising
productivity. We have to develop plant and seed
varieties that yield more and can resist climate
12
12

change. Honourable Union Finance Minister

proposed to set aside a sum of Rs 200 crore for
incentivising research with rewards, both for
institutions and the research team responsible for
such scientific breakthroughs. It is a bold and timely
taken decision by the Central Government to meet
out climate resilient agriculture.

Subsidy provision for fertilizer sector

Endeavour to keep central subsidies under 2
per cent of GDP in 2012-13 for all the applicable
sectors. Over next 3 year, to be further brought down
to 1.75 per cent of GDP. Based on recommendation
of task force headed by Shri Nandan Nilekani, a
mobile-based Fertilizer Management System has
been designed to provide end-to-end information
on movement of fertilisers and subsidies. In this
budget Government has taken steps to finalise
pricing and investment policies for urea to reduce
Indias import dependence in urea. To reduce Indias
import dependence in urea, Government has taken
steps to finalise pricing and investment policies for
urea. It is expected that with the implementation
of the investment policy, country will become self
sufficient in manufacturing urea in the next five
years. In case of the potassic-phosphatic (P&K)
fertiliser, use of single super phosphate (SSP) will be
encouraged through greater extension work. This
fertiliser is manufactured entirely in the domestic
sector. Enhanced production would bring down our
dependence on imports in the P&K sector.

Agricultural Institutions that are being

given grants
The driving force of a modern nation is research
and the creation of new knowledge and considering
this important view in mind the Honourable Union
Finance Minister made an allocation of funds in
his budget 2012-13 to the following agricultural
institutions / universities for strengthening of their
research, teaching and extension activities:

Rs 100 crore to Kerala Agricultural University

Rs

50 crore for University of Agricultural

Sciences Dharwad, Karnataka
Kurukshetra

April 2012

 Rs 50 crore to Chaudhary Charan Singh Haryana

Rs

Agricultural University, Hissar

50 crore to Orissa University of Agriculture
and Technology
Rs 100 crore to Acharya N. G. Ranga Agricultural
University in Hyderabad and
Rs 25 crore to the Institute of Rural
Management, Anand.

The allocation of the above-mentioned funds

to these state agricultural universities / institutions
will help not only to improve their infrastructures
but also their overall out-put in terms of research,
teaching and extension. The staff members /
students / scientists of their respective universities
will definitely appreciate the kind gesture of the
Central Government.

fully exempted from basic customs duty of 5 per

cent for a period of three years up to March 31,
2015.

Key Features of Union Budget 2012-13

for Agricultural Sector

Plan

Outlay

Imports of equipment for initial setting up or

substantial expansion of fertiliser projects are being
Kurukshetra

April 2012

for Rashtriya Krishi Vikas Yojana (RKVY)

increased to Rs 9,217 crore in 2012-13.

Initiative of Bringing Green Revolution

to Eastern India (BGREI) has resulted in
increased production and productivity of
paddy. Allocation for the scheme increased
to Rs 1,000 crore in 2012-13 from Rs 400
crore in 2011-12.

Rs 300 crore to Vidarbha Intensified Irrigation

Development Programme under RKVY.

Tax rebate to Agriculture and Related

Sectors
Carrying forward the initiatives taken for
agriculture and agro-processing in the previous
Budgets, the Honourable Union Finance Minister
in his budget 2012-13 proposed to reduce basic
customs duty from 7.5 per cent to 2.5 per cent on
sugarcane planter, root or tuber crop harvesting
machine and rotary tiller and weeder and parts for
the manufacture of these machinery / equipments.
The Honourable Union Finance Minister also
proposed to reduce basic customs duty from 7.5
per cent to 5 per cent on specified coffee plantation
and processing machinery. Also to extended project
import benefit to green house and protected
cultivation for horticulture and floriculture at
concessional basic customs duty of 5 per cent. He
also proposed to reduce basic customs duty on
some water soluble fertilisers and liquid fertilisers,
other than urea, from 7.5 per cent to 5 per cent and
from 5 per cent to 2.5 per cent. It was also proposed
to extend concessional import duty available for
installation of Mechanised Handling Systems and
Pallet Racking Systems in mandis or warehouses for
horticultural produce.

Outlay for Department of Agriculture

and Co-operation increased by 18 per cent
i.e. from Rs 17,123 crore in 2011-12 to Rs
20,208 crore in 2012-13.

Remaining activities to be merged into

following missions in Twelfth Plan:

National

Food Security Mission

National

National

National Mission on Agricultural Extension and

Mission on Sustainable Agriculture

including Micro Irrigation
Mission on Oilseeds and Oil Palm

Technology

National

Horticultural Mission

National Mission for Protein

Supplement
v

Rs

2,242 crore project launched with World

Bank assistance to improve productivity in
the dairy sector. Rs 500 crore provided to
broaden scope of production of fish to coastal
aquaculture.

Agriculture Credit
v

Target for agricultural credit raised by Rs

1,00,000 crore to Rs 5,75,000 crore in
2012-13.
13

13

Interest subvention scheme for providing

short-term crop loans to farmers at 7 per
cent interest per annum to be continued in
2012-13. Additional subvention of 3 per cent
available for prompt paying farmers.

Short-term RRB credit refinance fund being

set up to enhance the capacity of RRBs to
disburse short term crop loans to small and
marginal farmers.

The

There

Credit Card (KCC) Scheme to be

modified to make KCC a smart card which
could be used at ATMs by the Indian farmers.

Agricultural Research
A sum of Rs 200 crore set aside for incentivising
research with rewards.

Irrigation
Structural

Allocation

changes in Accelerated Irrigation

Benefit Programme (AIBP) being made to
maximise flow of benefit from investments in
irrigation projects.

Irrigation

for AIBP in 2012-13 stepped up by

13 per cent to Rs 14,242 crore.

and Water Resource Finance

Company being operationalised to mobilise
large resources to fund irrigation projects.

flood management project approved by

Ganga Flood Control Commission at a cost
of Rs 439 crore for Kandi sub-division of
Murshidabad District.

National Mission on Food Processing

l

A new centrally sponsored scheme titled

National Mission on Food Processing to be
started in 2012-13 in co-operation with State
Governments.
Steps taken to create additional food grain
storage capacity in the country.

Tax rebate Agriculture and Related

Sectors
l

14
14

Basic

customs duty reduced for certain

agricultural equipment and their parts.

exemption from basic customs duty for

import of equipment for expansion or setting
up of fertiliser projects up to March 31, 2015.

Challenges ahead and outlook of

Indian agriculture

Kisan

Full

agriculture and allied sectors have made

substantial progress in terms of production and
productivity since the beginning of the Planning
process. The successive Five Year Plans have
emphasized growth in the agriculture sector,
as a result of which foodgrains production
reached a record level of 244.78 million
tonnes in 2010-11. However, the challenges
are far from over. Agricultural growth in the
current Five Year Plan is expected to be less
than the target. A number of supply-side
constraints exist and thereby achieving the
food and nutritional security is a challenge. In
order to make 4 per cent agricultural growth a
reality, adequate efforts are required to focus
on addressing the challenges in this sector.
has been declined in area under
foodgrains in the last three decades. This
calls for speedy improvement in yield in order
to increase production through adequate
investment in research and development.
In yield parameters, India is lagging behind
global levels in most crops. With very little
growth in area and marginal growth in yields of
many crops during the last decade, increasing
agricultural production remains a challenge. A
holistic approach, spanning agricultural R&D,
dissemination of technology, and provision
of agricultural inputs such as quality seed,
fertilizers, pesticides, and irrigation, would help
achieve higher levels of productivity. Access of
small and marginal farmers to formal sources
of agricultural credit is still inadequate, though
the flow of agricultural credit has increased
in the recent past. Effective coordination and
monitoring of ongoing agriculture and allied
sectors programmes need to be ensured for
optimum results.
Kurukshetra

April 2012

 Mostly

Indian farmers are either small or

marginal farmers with small and fragmented
landholdings. The average farm size in the
country has declined over the years. This
poses a challenge in terms of adoption of farm
mechanization as well as generating productive
income from farm operation. Pooling of many
landholdings may yield better economies of
scale, for which land laws for leasing with
sufficient safeguards in place should be
considered.

In

the present scenario the higher levels

of purchasing power are supporting higher
demand for protein rich food items. The
country has to step up efforts for increasing
production of milk and other dairy products,
egg, poultry, fish, meat, etc. There have been
increases in the prices of these items because
supply has not kept pace with demand.

In

Still

facility would help reduce post-harvest losses.

Adoption of modern farm implements and
tools especially by small farmers is still low
because of their lack of resources. This, in turn,
hampers the development of the agriculture
sector. Addressing infrastructure requirements
in the agriculture sector, especially storage,
communication, roads, and markets should be
a priority. Public private partnership models
can be of help in ensuring faster development
of these requirements which are of vital
importance for the growth of the agriculture
sector.
l

There

Compared

India, the declining per capita availability

of foodgrains has been a matter of great
concern. For ensuring nutritional security, it
is not only important to increase per capita
availability of foodgrains but also to ensure
that right quantities of food items are there
in the food basket of the common man. A
thrust on horticulture products is required for
enhancing per capita availability of food items
as well as ensuring nutritional security.

majority of the Indian agriculture is

dependent on the monsoon. This adds to
the risks a farmer faces. The dependency of
the Indian farmer on the monsoon has to be
reduced largely by increasing the irrigation
facilities. Climate change and extreme weather
conditions impacting agriculture; there is
need to devise insurance schemes linked to
indices of various vulnerability parameters.
The insurance policy framework needs to be
dynamic, incorporating the perspectives of the
insured, insurers, and public policy so that it
covers a large section of population.

The

storage capacity is a major problem

presently facing the country. Adequate storage

Kurukshetra

April 2012

is an urgent need for improvement is

the generation of real-time market intelligence
and also agricultural market reforms.
Enhancing the returns farmers get on their
production is essential for incentivizing them
to produce more. Farmers need to realize the
market price for their produce. Setting up of
efficient supply chains is essential not only for
ensuring adequate supplies of essential items
at reasonable prices but also so that producers
get adequately compensated. Linking farmers
to the market is, therefore, very important.
The successful experience of cooperatives in
the milk sector in managing the supply chain
and providing remunerative prices to the
producers may be emulated in the case of
agricultural products.
to many western countries, the
level of secondary food processing in India
is very low. With increasing income and
population, demand for processed food is
likely to increase. It is necessary to cater
to this changing demand and at the same
time enhance the income of farmers. So far
the focus in food management has been on
cereals, mainly rice and wheat. However, the
demand for processed food is expected to
increase. Investment in food processing, cold
chains, handling, and packaging of processed
food needs encouragement.
15

15

 Over

the last few years there has been

substantial increase in the minimum support
prices (MSPs) of various crops. This is considered
necessary for incentivizing farmers to increase
production and productivity. At the same time,
the MSP signals the floor price for the produce
which, in turn, has the potential of increasing
prices. Addressing the welfare of agricultural
producers and consumers simultaneously
poses a challenge. Further, inability of a large
number of small and marginal farmers to
directly access the agriculture market puts a
question mark on increases in MSP actually
benefiting such farmers. Record procurement
of rice and wheat in the last few years has
helped build up the buffer stock and strategic
reserve of wheat and rice. There is, however, a
huge cost involved in the process, in the form
of food subsidy. The issue of efficient food
stocks management and offloading of stocks
in time needs urgent attention.

Considering

all
the
above-mentioned
problems, there is an urgent need to address

the challenges of the agriculture sector

through comprehensive and coordinated
efforts directed at improving farm production
and productivity of foodgrains as well as high
value crops, developing rural infrastructure,
renewing thrust on the irrigation sector,
strengthening
marketing
infrastructure,
and supporting investment in research and
development (R&D) of agriculture and allied
disciplines with due emphasis on environmental
considerations. We are sure that these efforts
will in time rejuvenate agriculture sector and
bring about increased inclusive growth of the
Indian economy.
(The first author is Principal Scientist, Division
of Agronomy, Indian Agricultural Research
Institute, New Delhi 110012, ysshivay@hotmail.
com; ysshivay@iari.res.in; Second author is
an assistant Professor, Department of Animal
Nutrition, College of Veterinary and Animal
Sciences, G. B. Pant University of Agriculture &
Technology, Pantnagar 263145, Uttarakhand,
anshurahal@rediffmail.com)

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Kurukshetra

April 2012

THE BUDGET AND RURAL DEVELOPMENT

Dr. Shahin Razi, Associate Professor

The Budget 2012 seeks to revive the growth

momentum in the economy with a focus on
infrastructure development, agriculture and rural
economy and inclusive growth.
The Budget 2012 focuses on rural
development with a moderate hike in allocation,
but the government has downsized in a big way the
importance of its flagship programme, the Mahatma
Gandhi National Rural Employment Guarantee Act
(MGNREGA).
For the scheme entitling jobs to below poverty
line (BPL) households in rural areas, the allocation
has been reduced by 17.5 per cent to only Rs.

Kurukshetra

April 2012

33,000 crore in the next financial year from Rs.

40,000 crore in 2011-12.
The reduction comes against the backdrop of
the poor performance of the scheme and demands by
the Agriculture Ministry, which the Economic Survey
released on Thursday echoed, for a moratorium
during agriculture season on the ground that it
deprived availability of labour.
Finance Minister Pranab Mukherjee has also
revised the current years allocation to Rs. 31,000
crore, a tad higher than the release of just Rs. 24,722
crore till February-end, while the expenditure by
the States stand at Rs. 24,106 crore. Only 4.09 crore
households have been provided with jobs till midFebruary, against the 5.49 crore households that
availed jobs under the scheme in 2011-12.
Notwithstanding this cut, the allocation
for various programmes that spearhead rural
development has been increased to Rs. 98,900
crore from Rs. 91,301 crore in 2011-12 for a 6 per
cent increase by Rs. 7,599 crore. This budgetary
allocation is next only to the allocation to the Defence
Ministry.

17

17

he Finance Minister, Mr. Pranab Mukherjee

has presented a credible and prudent budget.
This is commendable considering the multiple
headwinds, by way of an anaemic global recovery,
persistent high oil prices, lower than budget tax
revenues, sharp movements in the rupee exchange
rate and stubborn inflation during much of the year,
resulting in high interest rates. The compulsion of
managing a coalition government, no doubt, also
narrowed policy options.

Minister of Rural Development Jairam Ramesh

clarified that the government was committed to
meeting any demand for job and money would be
provided as and when required by the States. He
maintained no jobs would be denied and the demand
could have gone down because of good monsoon
and the lack of capacity of the gram panchayats
to spend the money demanded under the labour
budget proposed by the States, which too could have
been overestimated.

Drinking Water
The budget concentrates on drinking water
and sanitation, construction of rural roads, houses,
self-employment opportunities, including through
self-help groups (SHGs) and increased pension for
widows and disabled persons.
For drinking water and sanitation, the allocation
has been increased to Rs. 14,000 crore from Rs.
11,000 crore for a 27 percent increase, though
for current year, the allocation has been revised
downwards to Rs. 10,000 crore.
The focus on cleanliness and providing toilets
gained momentum in the light of the recent disclosure
that about 50 per cent of the rural population practice
open defecation that even affected their health.
Mr. Rameshs thrust for supply of quality water
has been accepted and the budget has sanctioned
the establishment of a water quality center in
Kolkata at an estimated cost of Rs. 50 crore. West
Bengal has decided to provide 2.5 to 3 acre of land
for the purpose.
The allocation under the Pradhan Mantri Gram
Sadak Yojana has been increased from Rs. 20,000
crore to Rs. 24,000 crore in 2012-13 for a 20 per cent
hike to increase road connectivity in rural areas.

Rural Housing
For construction of rural houses under the
Indira Aawas Yojana (IAY), the allocation has been
increased by over 10 per cent to Rs. 10,000 crore
from Rs. 9,000 crore.
For the integrated watershed programme under
the Land Resources Department, the allocation has
been raised from Rs. 2,294 to Rs. 2,745 crore. The
18
18

allocation to the National Rural Livelihood Mission,

which is likely to be renamed as Aajeevika has
been increased by 34 per cent from Rs. 2,914 crore
in 2011-12 to Rs. 3,915 crore next year.
The government proposes to set up a Bharat
Livelihoods foundation of India to support and scale
up civil society initiatives in 170 tribal districts. Private
trusts and organisations will contribute to the corpus
to be set up with an initial government contribution
of Rs. 500 crore.
Mr. Ramesh said he would be ensuring a private
contribution of a similar amount and the interest
earned will be used to help NGOs.
The Centre has decided to provide loans upto
Rs. 3 lakh to women SHGs at a subsidized rate of 7
per cent and an additional subsidy of 3 per cent to
those who return it timely. In the first phase, it will be
implemented in 600 blocks of 150 districts, including
the left-wing extremism affected districts.
On the social security front, the government
has increased the pension of widows and disabled
persons from Rs. 200 to Rs. 300 a month under the
Indira Gandhi National Widow Pension Scheme and
the Indira Gandhi National Disability Pension Scheme
for BPL beneficiaries.
Both the schemes are covered under the
National Social Assistance Programme, the allocation
for which has been enhanced by 37 per cent from Rs.
6,158 crore to Rs. 8,447 crore in 2012-13 to meet the
raised pension.
Overall the union budget adopts a pragmatic
approach towards addressing the needs of the
economy and managing the fiscal position.
Continued incentives to critical sectors emphasize
the governments focus on growth.
In the long term the fundamental strengths of
the Indian economy coupled with appropriate fiscal
policies and investments in key sectors should take
India to a higher growth trajectory.
(The author is Associate Professor, Reader, PG
Department of Economics And Dean of the Faculty
of Arts, Jamshedpur Womens College, e-mail :
shahin.razi@gmail.com)]
Kurukshetra

April 2012

Budgetary Allocation and its Utilization

MGNREGS- A Viewpoint

Dr. S.M Jawed Akthar, N.P. Abdul Azeez

The budget allocation has not been increased on the basis of the increase in the number of
districts under MGNREGS.

Earlier wage employment programmes that

sought to guarantee were constrained by the
lack of budget funds, and, so instead of a legal
guarantee, assurances alone could be offered. It is
possible that the confidence of the government to
commit funds was inspired by a higher growth rate

Kurukshetra

April 2012

of economy; but the significant point here is that

even when the economy slowed down as a result
of the global meltdown, the budgetary support
to MGNREGS did not decline.. The Table-1 shows
budgetary allocation of funds reflecting a steady
increase from 11300 crores in 2006-07 to 40100
crores in 2010-11. However the following years
the budgetary allocation has comedown which, of
course, will adversely affect the implementation of
the MGNREGS.

Financial Performance:
The Act stipulates that while implementing
the projects, labour cost and material cost should
be in the ratio 60:40. This ratio should be applied
preferably at the Gram Panchayat, Block and District
levels. For smooth implementation, the engineer is
required by the law to visit the work site at least
once in two weeks and the overseer is to visit every

19

19

efore formalizing the Act, government

agencies estimated that full coverage of
MGNREGS will cost Rs. 400 billion (about
US$ 9-10 billion) which was about 1 percent of
GDP. Some empirical assessments suggest that
MGNREGS could help reduce rural poverty to 23 per
cent during lean season, at annual cost of 1.7 per
cent of GDP (Murgai and Ravallion, 2005). Others
based on simple average minimum wage aggregates
of all states estimated the national annual cost to
be 1.3 percent of GDP; and a case was made that
MGNREGS will be sensitive to prevailing minimum
wages in respective states (Shariff, 2004).

Table 1: Financial Allocation of MGNREGS

Year

Budget
Allocation
(crore)

Percentage
of GDP

MGNREGS Exp. as MGNREGS Exp. MGNREGS Exp.

% of Total
as % of Revenue as % of Fiscal
Expenditure
Receipts
Deficit

MGNREGS
Exp. as %
of Rural
Development

2006-07

11300

0.28

1.2

1.6

6.10

46.55

2007-08

12000

0.26

1.5

1.9

10.0

41.71

2008-09

30000

0.56

1.6

2.0

10.8

52.77

2009-10

39,100

0.66

2.7

4.4

9.21

69.08

2010-11

40,100

0.54

2.8

4.1

9.01

55.63

2011-12

40,000

1.02

3.1

5.0

9.70

53.98

2012-13

33,000

0.78

2.2

3.0

6.42

33.33

Source: Budget Documents, Government of India.

day. In spite of this guideline, the overseer did not

visit the work site as stipulated, and the visits of the
engineers were also very few and far in between.
Tools and implements may be procured to enable
the workers to execute the work. The cost of tools
and implements may be booked under the material
component of the project. State governments
should devise a mechanism for transparent method
of procurement of materials to be used under
MGNREGA. The central government provides the
funds for the wages and for 3/4th of the material
costs. The State Government pays for th of the
material cost. The actual percent of expenditure on
wage, material and other administrative expenditure
in various years are shown the table-2
Table 2: Utilisation of Fund under MGNREGS
(Percent)
Year

Expenditure
on Wages

Expenditure Administrative
on Material
Expenditure

2006-07

66.21

30.89

2.09

2007-08

68.54

30.58

3.12

2008-09

69.27

30.08

3.48

2009-10

69.77

30.23

3.29

2010-11

68.36

31.64

4.57

2011-12

76.39

23.61

3.69

www.mgnrega.nic

If we look at the Table-2 we can understand that

the percentage of MGNREGS fund on wage is higher
than that of defined ratio. The share of expenditure
on wage has increased from 66.21 percent in 200607 to 76.39 percent in 2011-12, while with share
of expenditure on material has been reduced
20
20

and expenditure on administration of MGNREGS

has some slight variation. The expense on wages
(skilled and unskilled), material and administration
in different states shows the same trend. In the five
states where data was available, the payment on
wages was nearly 70 percent, and that on material
was around 30 percent. The other contingency
expenses were around 1 percent, except in the
case of Uttar Pradesh, where contingency expenses
were slightly above 2 percent.

State Expenditures and Household

Wage Accruals:
A state-wise break-up of utilization shows that
while most states have managed to utilize over
55-60 percent of allocated funds, some, such as
Maharashtra, Jammu and Kashmir, and Arunachal
Pradesh among others, have used less than 50
percent. Data from the Rural Development Ministry
shows that funds utilisation till June by Assam has
improved 200 percent compared with the same
period last year. Maharashtras utilisation has risen
by 60 percent. A look at the total expenditures
suggests that Madhya Pradesh, Andhra Pradesh and
Rajasthan have distributed Rs. 10-17 billion as wage
payments followed by Uttar Pradesh, Chhattisgarh,
West Bengal and Bihar, with the utilized amounts
ranging between Rs. 5 and 10 billion each.
Notwithstanding a considerable variation in
MGNREGS wage which ranges between high levels
of Rs. 166 in Haryana, Rs. 150 in Kerala, and Rs.
120 in Rajasthan and Uttar Pradesh each, and a
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April 2012

Three states have sought more funds under the

governments rural employment scheme to meet a
surge in demand for jobs from farm hands affected
by fluctuation in monsoon rains. Poor rainfall in
Maharashtra, Jharkhand and Assam has dried up
farm work, compelling farm workers to turn to the
MGNREGS. Enrolments under MGNREGS, initiated
primarily to ensure livelihood in lean farm seasons,
are usually low during monsoons, which overlaps
with the peak farm season. But with more job
seekers, these states have overshot their estimates
of work demand under MGNREGS for the first three
months of the current fiscal, forcing them to seek
more funds from the centre. Rainfall has not been
that good in some areas and some of the states
have come together for an upward revision in the
initial estimates.

Financial Implementation Issues:

It is also surprising to find that this scheme
has not been able to provide the employment that
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April 2012

one would have expected in poor states that has

largely to do with implementation and funding.
The MGNREGA provides for a multi-tier structure
of authority for implementation and monitoring of
the scheme with specified functions and duties for
each authority. Although there are various agencies
involved for implementation of the scheme,
the Gram Panchayat is responsible for all other
works related to planning and implementation.
The responsibility of the gram panchayat is the
identification, execution and supervision of
projects as per the recommendations of Gram
Sabha (village assembly). For accountability and
transparency purposes, the Gram Sabha is given
the power to conduct a regular social audit of
individual schemes. The authority entrusted
with the implementation as laid down indicates
that a coordinated approach of different tiers of
governments or vertical coordination is critical for
successful implementation of the scheme. Also,
the horizontal coordination across departments for
programme identification and execution of work
through the panchayat assumes critical importance.
These do not seem to be working too well.
As specified in the Act, for the purpose of funding
and the implementation of this scheme, the central
government will set up a National Employment
Guarantee Fund. Individual state governments will
also set up their State Employment Guarantee Fund
to make a matching contribution under this scheme.
The funding pattern as laid down in the Act specifies
that the centres obligation would be to bear the
cost on the items which includes the entire cost of
wages of unskilled manual workers, 75 percent of
the cost of material of wages of skilled and semi21

21

low of just over Rs. 100 in many of the remaining

states; the average accruals per household has
been the highest at Rs. 7733 in Rajasthan, Rs.
6862 in Haryana, Rs. 5383 in Madhya Pradesh and
Rs. 4032 in Chhattisgarh. The amount of wage
accruals is a meagre of Rs. 1795 in Bihar, Rs. 1549
in Gujarat, Rs. 1981 in West Bengal, Rs. 2726 in
Maharashtra, and Rs. 3327 in Uttar Pradesh. Three
states, namely, Madhya Pradesh, Rajasthan and
Chhattisgarh, again stand out in terms of the annual
size of wage accruals; followed by Andhra Pradesh
and Jharkhand. The two relatively backward states
that are not performing well are Bihar and Uttar
Pradesh.

skilled workers, administrative expenses as may be

determined by the central government, which will
include inter alia, the salary and the allowances
of the programme officer and his supporting
staff and work-site facilities, expenses of the
national employment guarantee council. The state
governments bear the cost on the items includes 25
percent of the cost of material and wages of skilled
and semi-skilled workers, unemployment allowance
payable in case the state government cannot
provide wage employment on time, administrative
expenses of the State Employment Guarantee
Council, administrative expenses towards salary of
the officials at District and state levels appointed
under MGNREGA. It has been specified in the Act
that if an applicant under this Act is not provided
such employment within 15 days of his application
seeking employment, he shall be entitled to a daily
unemployment allowance which will be paid by the
state government. This implies an inbuilt structure
of incentive for performance and disincentive for
non-performance for the state government, as the
inability to provide employment would require
the state government to pay an unemployment
allowance for which there is no contribution from
the centre. In other words, individual states will have
to evolve a well coordinated approach to equate
supply of employment in accordance to the demand.
While MGNREGA is a Centrally sponsored scheme,
administratively managed by the Ministry of Rural
Development, its implementation is exclusively
done by the respective state governments. The
states are expected to systematically make a claim
over the allocated resources by planning MGNREGA
work activities and turning them into projects. An
accumulation of such projects is used to appropriate
funds from the scheme resources earmarked
through a budgetary process. Often, the states are
unable to execute the programme efficiently due to
the shortage of administrative and implementing
personnel at the grassroots and sometimes due
to interparty political differentials, if the party in
power in the concerned state is different from the
one ruling the Central Government.
This becomes all the more important as there is
no supply side selection of beneficiaries. It requires
an in-depth understanding of region-specific labour
demand and its seasonality so that a demandbased scheme of projects can be implemented
at a frequency matching the demand for work
22
22

instead of relying on supply side provisioning.

Failure to fulfill these requirements may result in an
imprudent use of funds, as the inability to provide
employment on demand will impose the burden
of compensation in the form of unemployment
allowance on the state government. Thus, there
is a need to design a monitoring mechanism by
strengthening the institutional structure at the local
level so that resources can be used optimally. As it
is a demand-based provisioning system, the flow of
resources from higher levels of the government to
the Panchayats needs to be assured according to
the demand. Thus, it is necessary to evolve a clear
mechanism of flow of funds as needed according
to the demand rather than through the normal
bureaucratic procedures. This would also require
coordination between providing work and the
provisioning of funding. Stringent conditionalities in
fund release apart, the demand based provisioning
may be potentially regressive. As it stands now,
under the scheme funds will be released based on
the annual work plan and budget proposal by the
states.

Conclusion:
A unique and radical programme MGNREGA
requires time to be fully or even substantially
streamlined. Unfortunately, there is a sense of
nervousness in the bureaucracy about increasing
expenditure that has resulted in a narrow and
parsimonious Scheme. Funding was argued by Jean
Dreze and others to be possible through improved
tax administration and reforms, yet the tax-GDP ratio
has actually been falling. The main characteristic
of the Scheme is sluggish and low spending rather
than wastage and leakages. The bureaucracy
seems to be in the grips of some kind of fear and
lethargy, or simply a resistance to disturbing the
pre-existing power equations at the local level.
This stems from pessimism of the developmental
outcomes of this programme, suspicion surrounding
its empowerment spin-off and changing balance of
power and an overall climate of fiscal tightening
and low spending.
[About the authors: Dr.S.M Jawed Akthar
is Associate Professor; N.P. Abdul Azeez is Junior
Research Fellow, Department of Economics, Aligarh
Muslim University, Aligarh, UP. abdulazeeznp@
gmail.com.
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April 2012

Second Green Revolution:

Eastern States to Lead The Way
Dhurjati Mukherjee
Budget allocation for Rashtriya Krishi Vikas Yojana (RKVVJ), increased from 400 crores to
1000 crores.

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April 2012

Keeping this in view, the Finance Minister

launched in 2010-11 the bringing green revolution
in eastern India programme (BGRED) to focus
on the eastern states comprising Assam, Bihar,
Chattisgarh, Jharkhand, eastern UP, West Bengal
and Orissa with necessary financial allocations
to extend the green revolution. Reports reveal
that rice production from the region is estimated
at 562.6 lakh tonnes, an increase of 19.8 per cent
over the last year. Overall foodgrain production is
estimated at 1032 lakh tonnes, an increase of 11.9
per cent against an all-India increase of just 2.2
per cent, according to official figures.
According to government sources, the
increased production was due to focussed
contd. page 26....

23

23

here has been much talk in recent times

about the need for a second green
revolution as the country will have to
increase its agricultural output by more than
340 million tonnes by 2020 in the face of
increasing demand by a growing population.
It is also important to mention that the first
green revolution was limited to five crops with
the main focus on wheat and was only limited
to a few areas of the country, mainly Punjab,
Haryana and western Uttar Pradesh. Studies
have revealed that the cost intensive green
revolution helped mainly the rich farmers while
the small and marginal farmers did not receive
the desired benefits and their conditions showed
a decline.

24
24

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April 2012

April 2012

25

25

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To be cont. page 23.....

resource allocation and utilization. The significant

increase in production in the target region not only
offset the decline in production in central and
peninsular India but also contributed to the
highest ever production of foodgrains.
The programme, part ofthe Rashtriya Krishi
Vikas Yojana (RKVVJ), gained momentum in 201112 with an outlay of Rs 400 crores with focus on rice
and wheat and strategic interventions relating to
crop production, water harvesting, asset building
and site specific activities needed for improving
the agronomy. It is thus in the fitness of things
that in the current budget the allocation for
2012-13 has been increased to Rs 1000 crores,
considering the success of the programme and
to make greater inroads in increasing production
and productivity.

conservation and management and this has also

been looked into by the Finance Minister. Climate
resilient agriculture is the need of the day and
field research and experimentation are vital
requirement at this juncture. Funds of Rs 200
crores have been aptly allocated for incentivizing
research with rewards both for institutions and
the research team responsible in such scientific
breakthroughs.

However, in spite of the success achieved,

the productivity of paddy in eastern India is 2
tonnes per acre which is much lass than Punjab
whose paddy production is almost around 4
tonnes per acre. It is now necessary to reach the
small and medium farmers and make a dent to
the whole of the agricultural sector. The eastern
region comprises 50 per cent
of the total area under paddy
in thecurrent budget the
cultivation and, as such,
allocation for 2012-13
increasing production and
has been increased to
productivity is crucial to meet
Rs 1000 crores, considering the countrys increasing food
the success of the
requirements.

One may mention here

that
another
important
announcement made two
years back, which continued
thereafter, was the proposal
to organize 60,000 pulses
programme and to
The focus on agricultural
and oilseed villages in rainmake greater inroads in
research has to be fieldfed areas and provide an
increasing production and
oriented so as to ensure
integrated intervention for
efficient use of resources and
productivity.
water harvesting, watershed
conservation of soil, water and
management and soil health
ecology on a substantive basis
to enhance the productivity of the dryland areas.
along with introduction of new varieties of seeds,
In this budget, aNational Mission on Oilseeds
modern technologies, nutrient and knowledgeand Oil Palm has been constituted to further
based intervention developed for different agroincrease production and productivity of oil seeds
climatic zones. Then only can the second green
and oil palm. With per capita availability of water
revolution, which is being discussed at every
declining, the dryland areas would do well to
level, can become a reality.
concentrate on pulses and oilseeds production,
both of which are in heavy demand and output
Even the Eleventh Plan emphasized on
needs to be boosted up.
certain measures for taking agriculture to a
higher trajectory of 4 per cent annual growth.
There is also an imperative need to sustain
For this to become a reality, the budget has
the growth achieved in the green revolution
rightly emphasized on making technology and
areas by improving soil health and water
26
26

Kurukshetra

April 2012

credit available to the small farmer at the grass

root level. One may mention here some of the
specific measures already outlined in the Plan in
this regard:
(i) improving water management, rainwater
harvesting and watershed development;
(ii) reclaiming degraded land for cultivation and
focusing on soil health;
(iii) bridging the gap through effective extension
at the grass root level;

transfer and extension, irrigation and water

planning, food processing and diversification
of agricultural products need also to be given
attention. It is significant that the problems of
small and marginal farmers, who constitute the
major segment of the farming community and
who have been rather neglected, is a matter of
great importance and help and support to this
group is very vital.

The renewed thrust in setting up of agro

processing centres in the rural areas is an imperative
(iv) diversifying into high-value outputs, fruits,
need as this would result in the minimization of
flowers, medicinal plants, bio-diesel etc.;
post-production losses and production of value(v) providing easy access to credit at affordable
added products for consumers at an affordable
rates; and
price. The question of
(vi) improving
the
reducing wastages and the
The focus on agricultural
incentive
structure
improvement of storage
research has to be fieldand functioning of
has been stressed by the
oriented so as to ensure
markets.
efficient use of resources and Finance Minister as the
Former
President, conservation of soil, water and second element of the of
Dr. A. P. J. Kalam, realized
ecology on a substantive basis the agricultural growth
the potential of Indian along with introduction of new strategy. If necessary,
private sector participation
agriculture and highlighted
varieties of seeds, modern
would have to be ensured,
this in various forums
technologies, nutrient and
specially in developing
and also at the triennial
knowledge-based intervention agro processing in a big
conference of the Global
developed for different
way. One cannot deny
Forum
on
Agricultural
agro-climatic zones.
that the private sector has
Research at New Delhi
played a significant role
way back in November 9,
as developers of new crop varieties, specially
2006. Since then several workshops have been
hybrids, and providers of high quality seeds. It is
held on the subject. While there is unanimity
now necessary for the government to encourage
of opinion that the spread effect of the second
and provide incentives for collaborative research
green revolution must in the eastern states reach
for developing products.
the farthest corners, some have rightly pointed

Certain other aspects like agri-marketing

in a globalized environment, frontier areas of
research and development and technology
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April 2012

Agricultural development could be possible

through the following measures: (i) new and
innovative technology for enhancing production;
(ii) new technology for resource conservation;
(iii) encouraging farmers cooperatives in a big
way as is being done in Gujarat and Maharashtra;
27

27

out that it should ensure financial inclusion of

the small and marginal farmers whose numbers
continue to grow over the years.

(iv) massive skill training and entrepreneurship

development; (v) value addition of agricultural
products, not only at the level of industry but also
at the level of farmers; and (vi) good marketing
network, including development of future market.
In this connection, the Indian Council for Agricultural
Research (ICAR) with around 200 experiential
learning units at 43 agricultural universities in
different parts of the country should intensify
requisite training activities to equip the farmer in
the proper way.

size is 3.8 acres which is 2.5 times the average

size of Indian farms, the farmers income is far less
than the average salary of a Class IV employee of
the government. The question thus arises is that
how will farmers continue to be involved in cereal
production with stagnant incomes, more so with
fertilizer and electricity rates on the increase?
There is thus an imperative need to examine the
question of subsidies and/or enhance the minimum
support price for various crops. The higher rates
would ensure better returns for farmers and there
is no reason to raise a hue and cry about increased
food process.

There is a belief, to start with, that the second

green revolution should be made possible in the
India can definitely emerge as an agricultural
rain-fed areas so as to improve the income levels
power in the not-too-distant
of the distressed farmers. The
main challenges obviously lie
It may be mentioned here future if a better strategy is
in reaching new technologies that even in Punjab, where implemented. There is an
urgent need to overhaul socioto small and marginal farmers,
the average farm size is 3.8 economic and farm policies to
providing them necessary credit
acres which is 2.5 times the remove rural disparities and
and improving their incomes
average size of Indian farms, remove rural poverty or at
through better infrastructure
least bring it down steadily.
the farmers income is far
and marketing strategies.
less than the average salary The face of rural India has to
In such a scenario, positive
be transformed keeping in
of a Class IV employee
steps are needed at this juncture,
view the need to improve the
of the government.
the first and foremost of which
living conditions of the masses
is the strengthening the existing
and for this diversification
Krishi Vigyan Kendras (KVKs) and setting up such
strategies have to be evolved to bring more
Kendras in all the blocks of the country to reach
value-addition while agricultural productivity is
all sections of farmers in boosting production,
geared up. One may conclude with an estimate
facilitating adoption of improved knowledge on
by Dr. C. Rangarajan, the eminent economist, as
production, value addition and marketing and
early as 1982, that a mere one per cent increase
extending all types of help through adoption of
in agricultural output led to a 0.7 increase in
improved knowledge on production, value addition
national income and it may be added that most
and marketing.
part of this enhanced income obviously reached
the grass root levels of rural India and benefited
But the crucial thing that remains to be
the farming community.
ensured is that returns from agriculture have to be
monitored so that the farming community is not
(The author is a freelance writer on
put in a precarious situation and mounting debts
developmental
and
environmental
issues.
do not lead them to suicide. It may be mentioned
(development based in Kolkata). (dhurjatimukherjee
here that even in Punjab, where the average farm
54@gmail.com)
28
28

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April 2012

APPROACHES TOWARDS TWELTH FIVE YEAR PLAN

NEED FOR FOCUSED ATTENTION
Arpita Sharma
India currently has the worlds largest food insecure population with more than 260 million people
facing hunger and deprivation

Poverty: According to NSS round [2004-05],

41.8% rural population had monthly per capita

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April 2012

expenditure of Rs.447 as against 25.7% urban

population having monthly per capita expenditure
of Rs.578.8. According to Multidimensional
Poverty Index [MPI] worked out by UNDP & Oxford
University, July 2010, about 645 million people
[55%] in India are poor. As against 410 million MPI
poor in 26 of the poorest African countries, eight
Indian States [Bihar, Chhattisgarh, Jharkhand,
Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh
and West Bengal] have 421 million MPI poor. The
MPI reveals a vivid spectrum of challenges facing
the poorest households. MPI considers 10 sharp
indicators, namely Education [child enrolment and
years of schooling]; Health [child mortality and
nutrition] and Standard of living [electricity, drinking
water, sanitation, cooking fuel, flooring and assets].

29

29

ahatma Gandhiji had a vision that

India after its independence should
achieve self-sufficiency of villages in
which every one would have adequate food, shelter,
clothing, proper hygienic and sanitation facilities
and every person willing to work is provided gainful
employment. Let not history of India record that
Mahatma Gandhiji brought political independence
for India but the Government could not bring
economic emancipation for rural poor. This paper
highlights poverty, hunger, child nutrition and food
security in the country and suggests that Twelfth
Plan [2012-17] should give focused attention to
significantly ameliorate the deteriorating situation.

A global report on poverty eradication of the U.N.

Secretary-General shows that economic growth
is evident for the progress in China in reducing
extreme poverty and raising living standards,
whereas India is expected to be home to more than
300 million in poverty out of 900 million predicted
to be in extreme poverty in 2015.

Hunger: In India, the right to food campaign

launched in 2001 focused its demand to address
the structural roots of hunger since Indias
commitments to tackle the problem of hunger and
malnutrition are among the worst. India currently
has worlds largest food insecure population with
more than 260 million people facing hunger and
deprivation. According to the Global Hunger
Index [2008], India ranks 66 among 88 countries
surveyed by the Washington-based International
Food Policy Research Institute. India comes below
Sudan, Nigeria and Cameroon. Under the United
Nations Millennium Development Goal No.1, for
Sustainable Human Security and Peace India is
committed to reduce hunger and poverty by half
by 2015

Child Nutrition: Despite the Integrated Child

Development Scheme since early 1970s, the
National Family Health Survey, 2006, notes the
child under-nutrition rate is 46%, which is almost
double that of sub-Saharan Africa. India has 40% of
the worlds underweight children and ranks 126 out
of 177 countries in the UNDP Human Development
Index and [ii] 20% of children under five-years-old
are wasted [too thin for their age] due to acute
under-nutrition and 48% were stunted [too short
for their age] due to chronic under-nutrition and
70% of children between six months and 59 months
were anaemic. The percentage of children below
five years of age who are underweight is 42.5% as
compared with 4% in Brazil and 6% in China. More
than a third of all deaths in children aged five years
or younger can be attributable to under-nutrition.
Infancy deaths were 53 per 1000 live births in
2008.The Global Hunger Index [2010] identified
30
30

child under-nutrition as a major contributory

factor behind persistent hunger. According to
Washington-based International Food Policy
Research Institute India is among 29 countries that
face alarming situation of hunger. Malnutrition
among children under two years of age is one of
the serious challenges to reduce hunger, which
if not timely attended can cause lifelong harm to
childs health, productivity and earning potential.
Our Prime Minister Dr. Manmohan Singh had once
referred to under-nutrition as a matter of national
shame.
Experiences of successes in China, Brazil,
Thailand, Vietnam and other countries suggest
[i] according top priority to child nutrition with
adequate investments in nutrition interventions
and related critical areas impacting multiple
deprivations [ii] targeting nutrition interventions
to prevent and moderate under-nutrition and treat
severe under-nutrition as a part of continuum of
care for children, particularly among the most
vulnerable children, the youngest, the poorest
and the socially-excluded [iii] strengthening
community-based primary health care to facilitate
wider and deeper coverage through communitybased frontline workers [iv] strong supervision,
monitoring and evaluation of the effectiveness
of policy, programs and budgetary allocations
to yield expected outcomes and provide timely
documented feedback to re-look policy, programs
and budgetary action [v] reducing malnutrition calls
for serious concern for poor, strong political will to
commit, good governance and accountability [vi]
Cash Transfer Scheme to be effective need to be
supported by adequate staff and infrastructure for
public sector health facilities.
With serious concern and commitment China
reduced child under-nutrition from 25% to 8%
between 1990 and 2002, Brazil from 18% in 1975
to 7% in 1989, Thailand from 50% in 1982 to 25% in
1986 and Viet Nam from 45% to 27% between 1990
and 2006. India has the financial & human resources
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April 2012

Food Security: Per capita availability of food

grains and other essential food products in India
is below the world average and significantly lower
than in developed countries. Food is unaffordable
for a large number of the poor in India. Under the
proposed legislation for food security to Indias
teeming millions, the Expert Committee has
estimated procurement & distribution of food not
less than 63.98 million tons, rising to 73.98 million
tons by 2016-17 against the likely procurement
of 57.61 million tons in 2013-14.As about 800
million persons are sought to be covered under
Food Security Act, it is necessary to substantially
increase food productivity & output to facilitate the
estimated level of procurement, create additional
facilities for transport, processing, storage and
evolve transparent distribution mechanism. A large
amount of the subsidized food grains targeted at
BPL households, some APL households and other
vulnerable groups find its way to the open market.
Scientific studies revealed that in 2001-02, 18.2% of
PDS rice and 67% PDS wheat were diverted. In other
words, over 40% of all grain targeted at the poor
did not reach the poor. Using the NSS expenditure
survey of 2004-05, overall diversion was of 55% of
the grain meant for the poor. The same problem is
manifested in case of kerosene, diesel and fertilizers.
Besides, the current system is beset with significant
level of adulteration, pilferage and corruption.

Focused Attention: Chronic problems of

rural poverty, hunger, child nutrition and food
security, among others, need focused attention
to significantly develop productivity, production
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April 2012

and profitability of farming enterprise by creating

enabling environment through enhancing annual
public sector investment, arresting imbalance in
the flow of farm credit, legal framework for defining
tenant farmers relationship with land in particular

Investment: The Gross Capital Formation

[GCF] in agriculture and allied sectors as a
proportion to the GDP in the sector stagnated
around 14% during 2004-05 to 2006-07. Though it
increased to 16.03% in 2007-08 and 19.67% in 200809 [provisional] and estimated 20.30% in 2009-10,
the GCF in agriculture and allied sectors relative to
overall GDP has remained stagnant at around 2.5%
to 3.0%. As a result the share of GCF in agriculture
and allied sector in total GCF has remained in the
range of 6.6% to 8.2% during 2004-05 to 2009-10.
To accelerate the process of farm development
and achieve inclusive rural growth, policy should
focus on critical areas, namely [i] accelerated
investment in rural infrastructure to improve
transport, communication, storage, processing
and marketing facilities [ii] establishing State of
Art Agri-meteorology [iii] expanding irrigation
and reclamation of wastelands [iv] strengthening
agricultural education, research and extension
services and capacity building of farmers to bridge
the yield gap between the potential yields and actual
yields at field level in rain-fed and irrigated farming
systems [v] development and use of genetically
engineered seeds, micro-irrigation systems,
greenhouse technology, integrated nutrient and
pest management techniques, computer-based
modeling to track disease and pest incidence [vi]
farm mechanization [vii] remote sensing technology.
Investment in agriculture would facilitate farmers
access to frontier technology, food processing, farmto-market linkages, agricultural extension, weather
and crop forecasting, large-scale development of
bio-diesel, mechanization and commercialization of
agriculture. Public, private and foreign investment
should remedy the situation of investment shortage
in agriculture and help transform a negative subsidy
regime into a capital-intensive positive Agricultural
31

31

as well as administration and managerial capabilities

to address, once and for all, the challenge of child
under-nutrition. Let the prevention and treatment
of child under-nutrition in the first two years of life
be a national development priority and let National
Nutrition Week be celebrated in September
every year to create mass awareness about the
programs and exercise right to hold implementers
accountable.

Marketing Service regime and stimulate Indian

producers to access global markets. Government,
Agricultural Universities and ICAR Institutes along
with industrial, business and commercial houses in
close coordination should accelerate their efforts to
accomplish this task

Farm Credit: The credit flow to agriculture

since 1970 till 2010 has been of the order of
Rs.28,53,261 crore, of which 81.50% was disbursed
between 2001-02 to 2009-10. However, its impact
on improving crop productivity and output has
been low. Despite banking system has been
achieving stipulated credit targets announced in
the budgets since 2001-02 in absolute terms every
year there have been significant disparities in
credit flow between States, between districts and
between villages. In fact, in absence of appropriate
legal frame work tenant farmers, share croppers,
oral lessees, landless laborers, households residing
in hilly, tribal, desert, drought prone areas in
particular do not have easy and reliable access to
institutional credit.

Tenant Farmers: India has a large number of

companies. The National Sample Survey [2003]

estimated that the area under informal tenancy in
India varies between 15% and 35% of the total farm
area and 36% of the total households leasing land
are landless laborers and 47.5% having land below
0.5 hectare.

Conclusion:

Rural households should

identify their financial and non-financial needs for
income generating activities in rural farm and nonfarm sector and infrastructure and demand them
from elected representatives. State and Union
Government need to allocate adequate financial
resources in their annual budgets to tackle issues
of poverty, hunger, child nutrition, food security
and rural infrastructure. Implementing agencies
including banks should have serious concern,
commitment and be accountable to achieve
expected goals district, State and region-wise.
Information about the performance of each
program should be made available to the public
every month through local print and electronic
media as also through seminars, workshops and
conferences at district level.

Pattern of Land Leased for Farming by Rural Households by Percentage

State

Landless
Laborers

Below
0.5 hectare

0.5 &1.0
hectare

Andhra

53.1

30.4

08.5

Arunachal

71.3

20.1

Assam

34.7

Bihar

Landless
Laborers

Below
0.5 hectare

0.5 to 1.0
hectare

Madhya

28.5

39.7

10.9

04.1

Maharashtra

60.1

19.8

07.0

43.6

11.3

Orissa

17.3

71.8

07.9

58.0

87.0

06.0

Punjab

23.8

31.9

13.5

Chhatisgarh

26.9

43.5

18.6

Tamil Nadu

72.7

21.3

02.3

Gujarat

63.7

18.8

05.5

Uttar Pradesh

78.0

69.5

13.2

Haryana

24.0

45.4

08.9

West Bengal

14.1

75.1

08.4

Karnataka

55.2

28.3

05.3

Kerala

50.0

46.2

03.4

All India

35.8

47.5

08.2

tenant farmers whose legal relationship with the

landowners and the piece of land they cultivate
has yet not been acknowledged through statutory
legal framework to facilitate them to access credit
from banks and insurance cover from insurance
32
32

State

(The author is Ph.D Research Scholar,

Dept. of Agricultural Communication, College of
Agriculture, G. B. Pant University of Agriculture and
Technology, Pantnagar 263145 (Uttarakhand),
e-mail-sharmaarpita35@gmail.com)
Kurukshetra

April 2012

Electricity Through Cogeneration:

A Promising Development
Dr. J. R. Meshram, Gargi Malik
To meet the requirement of captive power and thermal energy, the installation of biomass
cogeneration projects (excluding bagasse co-generation ) is being promoted in industry, with
at least 50% of power for captive use, and a provision for the surplus power to be exported to
the grid.

the surplus can be fed into the grid.

Kurukshetra

April 2012

Cogeneration or production of electricity in

combination with another industrial process is
not limited to sugar mills alone. There are several
other industries such as paper and pulp, textile,
fertilizer, petroleum, petrochemicals and food
processing which require electrical as well as
thermal energy for their operations and therefore
can use cogeneration as a process. The total fuel
consumption is significantly reduced when cogeneration or combined heat and power (CHP)
is applied. The overall efficiency of energy use in
cogeneration mode can be up to 85 per cent and
above in some cases.

33

33

hink of a sugar mill, not only producing sugar

but also generating power as a by-product.
Bagasse, a residue of crushed sugarcane
used in sugar mills is the principal fuel used to
raise steam in sugar mills. With the technological
innovations, the high pressure steam generated
in boilers can in turn be used to rotate the turbo
generator blades to produce electric current.The
process employed here to generate power is
called cogeneration which essentially implies the
production of two forms of energy, electricity and
heat. The power thus generated can be used for
meeting the requirements of the sugar mill and

In the present scenario, where price of fossil

fuels is shooting up and there is shortage and nonavailability of coal, cogeneration appears to be a
promising development. The thrust on distributed
generation and increasing awareness for cutting
green house gases emissions increases the need
of processes like cogeneration. Also it helps in
controlling pollution from fossil fuels.
The Ministry of New and Renewable Energy
is promoting cogeneration through various
incentive based schemes. Biomass Cogeneration
programme inIndiais currently divided into two
components (i) Bagasse based (ii) Non-Bagasse
based . While bagasse cogeneration is essentially
sugar mills oriented non-bagasse biomass
cogeneration can be used in biomass industry.

Bagasse Based Cogeneration

As already explained, the bagasse based
cogeneration is mainly centred in sugar
mills.Indiais the worlds second biggest producer
of sugarcane. Indian sugarcane production during
2010-11 is estimated at 340 million tonnes. Indias
527 working sugar mills crush around 240 million
tonnes of cane per year and generate 80 million
tonnes of wet bagasse (50% moisture), of which
they consume around 70 million tonnes for meeting
captive requirementsof power and steam. Thus,
electricity production through cogeneration in
sugar mills inIndia is an important avenue for
supplying low cost, non-conventional power.
Indian efforts for promotion of bagasse
cogeneration started with two pilot projects taken
up in cooperative sugar mills in Tamil Nadu in 198889 for generation of surplus power and feeding
it to the grid. Though possibilities of additional
power generation through cogeneration in sugar
industry has been known for long, but their usage
started in a significant manner only after 1994,
after announcement of programme on bagasse
based cogeneration by the Government.
34
34

A capacity of around 1854 MW of surplus

power generation has so far been commissioned
in 170 sugar mills in the states of Andhra Pradesh,
Bihar, Haryana, Karnataka, Maharashtra, Punjab,
Tamil Nadu, Uttar Pradesh and Uttarakhand. More
than 200 MW of projects in about 20 private sector
sugar mills are under construction. Optimum
bagasse cogeneration benefits not only the sugar
mills but also the sugarcane farmers as the value
addition to their cane is enhanced and thus they
can realise more money for it.

Power Cogeneration in Industries

(Non-Bagasse) Programme
The industrial sector today consumes
approximately 35% of total electricity generated
in the country. At the same time, high quality
stable power is required to attain the higher
growth rate projected for this sector. Majority
of industries inIndia require both electrical and
thermal energy. Today, they either buy power
from the State Electricity Boards, or generate their
own power largely through diesel generators and
meet their thermal energy requirements through
captive means mostly utilizing fossil fuels such as
coal, oil or natural gas. As fossil fuels are limited,
and have adverse environmental impact, it would
be appropriate to use non-conventional energy
sources including biomass resources such as crop
residues and agro-industrial wastes for generation
of energy in the industries mainly through
biomass gasification technology for meeting their
total/partial requirements for both electrical and
thermal energy.
Industrial co-generation has in the past not
received adequate attention, as cheap power
and fuel were abundantly available. However,
with increasing tariffs, and unreliable supply of
grid power, there is considerable opportunity
for the industrial sector to tap the potential
for producing electricity and thermal energy in
Kurukshetra

April 2012

To meet the requirement of captive power

and thermal energy, the installation of biomass
cogeneration projects (excluding bagasse cogeneration) is being promoted in industry, with
at least 50% of power for captive use, and a
provision for the surplus power to be exported
to the grid.This has increased the use of nonconventional energy sources and conserves the
use of fossil fuels such as coal, oil and natural gas.
Use of maximum of 25% conventional fuels has
been allowed in such projects. The promotional
schemes also provide for Grants-in-Aid to State
Nodal Agencies, NGOs and other concerned
institutions for organizing seminars, workshops,
training/orientation programmes, technology
validation, strategic studies, industry-wise sectoral
studies and performance monitoring & evaluation,
etc.

New Initiatives for Promotion of

Cogeneration inIndia
BOOT (Build, Own, Operate, Transfer) Model
Cogeneration Projects in Cooperative Sugar
Mills:Provision for Central Financial Assistance
has been made for bagasse cogeneration projects
taken up through BOOT model in cooperative
sector sugar mills set up by Special Purpose
Vehicle or an Independent Power Producer. In
this case, the investment in cogeneration power
Kurukshetra

April 2012

plant with concurrent modernisation is done by

BOOT developers. This model has advantage in
terms of non-requirement of equity and loans by
cooperative sugar mills and nil liability to repay
and limited risks. The cogeneration plant and
assets after BOOT period are to be handed over to
cooperative sugar mills. The Ministry of New and
Renewable Energy has supported the BOOT model
projects in Maharashtra and Tamil Nadu.BOOT
model projects in 12 Co-operative Public sector
sugars mills in Tamil Nadu of aggregate capacity
180 MW and BOOT model cogeneration projects
in two cooperative sugar mills of Maharashtra of
total capacity 80 MW are under implementation.
The Ministry plans to extend this effort in the Cooperative/Public sector sugar mills in the states
of Karnataka, Andhra Pradesh, Gujarat & Uttar
Pradesh, during the next two to three years.
Boiler
Modification
in
Cooperative
Sugar Mills:A number of recently installed
cooperative sugar mills have already employed
the configurations to enable them to undertake
cogeneration power projects with minimum
investment through modification of existing
boiler and matching turbine. Ministry of New and
Renewable Energy has modified the scheme for
providing Central Financial Assistance for boiler
upgradation of cogeneration project in such sugar
mills.
The incentive based schemes and the
technical support to the industry by the Ministry
of New and Renewable Energy for installing
cogeneration based projects is expected to
give a big push to the non-conventional energy
programme during the twelfth Plan Period. (PIB
Feature).
(The First author is Scientist F, Ministry
of New & Renewable Energy, New Delhi, and
the second author is Assistant Director, Press
Information Bureau,New Delhi.)
35

35

the co-generation mode. In particular, there is

significant potential in breweries, caustic soda
plants, textile mills, distilleries, fertilizer plants,
paper and pulp industry, solvent extraction units,
rice mills, petrochemical plants, etc. Furthermore,
co-generation projects based on conventional
fuels such as coal, oil, lignite, gas and un/semiutilized wastes/rejects like dolochar, coal rejects
and refinery mud, etc. can also be installed in
industry for meeting their power and energy
requirements.

FROM THE GROUND

Peoples Biodiversity Register and Tapping

Indigenous Knowledge :
A Case Study From Wayanad
Dr. Raju Narayana Swamy

cosystem people depend directly on

natural resources for their livelihood.
Their rights include the right to protect,
conserve, or manage resources which they have
been traditionally protecting and conserving
for sustainable use. Indigenous knowledge is an
integral dimension of all societies but is more intact
in areas, such as high-altitude remote Wayanad
areas, where isolation have acted as barrier to
outside forces for a long period. In our analysis,
we discuss the scope for integrating indigenous
knowledge and conventional ecological science for
resolving biodiversity conservation-development
conflicts, within the context of the Wayanad
mountain system. It analyses an institutional
innovation, the Peoples Biodiversity Register,
aiming at collective management of traditional
knowledge and biodiversity conservation. The key
evaluation criteria used in the framework includes:

36
36

Relevance i.e., the extent to which the objectives

of PBRs are consistent with beneficiaries.
Effectiveness, i.e., the extent to which the PBRs
objectives are achieved and Efficiency i.e., how
economically resources are converted to results
and how it provided food security to tribals in
Wayanad.
The desirability for economic growth is
undisputed. Critics have pointed to the irreversible
disruption of traditional societies, their life styles,
and the spread of a uniform materialistic mass
culture. This culture may lead to cultural shallowness
and exploitation of ecology as a result of capitalistic
market relations. In traditional societies people are
more in tune with their potentialities in natural
environment which would balance their needs and
wishes. There is a strong Malthusian movement
which stresses that continued economic growth will
disturb the balance of nature, ultimately leading to
ecological catastrophes.

Kurukshetra

April 2012

In this harmonized political-economic

milieu, the boundaries of states with respect
to economic matters have begun to give way to
economic markets. Regions, under the impulse
of state and business elites, fail to compete in
the global economy, and they have also not
established networks of cooperation in the regionbased companies. These regional economies
become the principal basis for participation in
the global network in which the logics of capital
and technology guide the economic, political,
cultural and institutional flows of human activity
to rationalize social and ecological relations. Here
the type of environmental crisis is shaped by the
capital.

economic exchanges and unequal power relations

between rich and poor nations are detrimental
to the poor nations of the world. In essence rich
nations become wealthy by exploiting the cheap
labour and resources of poor nations. Research
focussing in the 1980s, tended to focus on
multinational corporate penetration or foreign
direct investment (John, M. Shandra, et.al., 2010).
Inequality of income and resource distribution
have received much of the blame for environmental
degradation. National laws, economic and political
institutions and government policies are central
to many recent explanations of biodiversity
loss(Alexander, Wood, 2000). Our study follows in
this way.

Biodiversity

Biodiversity conservation

Ecological and genetic multiplicity together

make the foundation of existence. United Nations
Environment Programmes Global Biodiversity
Assessment proposes that Biodiversity represents
the very foundation of human existence. The
convention on Biological Diversity in Article 2
defines it as the variability among living organisms
from all sources including, inter alia, terrestrial,
marine, aquatic ecosystems and the ecological
complexes of which they are the members; this
includes diversity within species, between species
and of ecosystems(World Resources, 1994).

From an ecological perspective, biodiversity

protects ecosystem resilience by understanding
the provision of ecosystem services over a range
of environmental conditions. The ecological
impact of biodiversity loss depends on the link
between the species and the functions of the
system(Charles, Perrings). The economy as a part
of its life-supporting environment, depends not
only on the inputs of energy and natural resources
for production and consumption, but also on
services generated by ecosystems, such as drinking
water supply, recycling of nutrients, generation of
soils. Being parts of ecosystems, species sustain
those crucial services. If human societies do not
recognize their place in the overall systems, their
activities will continue to cause degradation to
biodiversity, thereby reducing the environmental
support on which human welfare depends upon
(see the figure below:).

Kurukshetra

April 2012

The most important environment centric and

anthropocentric reasons for conserving biological
diversity is the role played by micro-organisms,
plants and animals in providing ecological services
of value to humanity. A multiplicity of organisms
underpins the ecological life-support functions
that enable human societies to exist. The value
of biological diversity thus lies in the value of the
ecological services supported by the interaction
37

37

There are three processes that lie in global

biodiversity loss. The first is the destruction and
fragmentation of habitat associated with the
expansion of mining, forestry and agriculture.
Habitat fragmentation and loss in areas of high
endemism are considered to be the major cause
for the extinction of species worldwide. The
second is the introduction of species. Its effects
include the deletion of indigenous species through
predation or competition, genetic alteration of
indigenous species through hybridization and the
alteration of ecosystem structure. The functions
include biogeochemical, hydrological and nutrient
cycles, soil erosion and other geomorphological
processes(Charles, Perrings & Jon, Lovett). The
dependency perspective argues that international

between the organisms, populations and

communities of the natural environment, and the
value of biodiversity loss reflects the sensitivity of
ecological services of both the depletion and the
deletion of species (Charles, Perrings & others,
1992, p.201.).
The conservation discourse on biodiversity
originated with the notion of a diversity crisis,
which came about gradually during the 1970s
with increasing awareness of an extinction
wave that was threatening as a consequence
of human populations growth and increasing
intensity of environmental modifications (Yrjo
Haila & Jari, Kouki, 1994). A simplistic view of
integrated management would be to identify key
interventions to the concept of keystone species
enabling environmental and socio-economic
benefits simultaneously. Two approaches are
identified to overcome the problem-complex.
One is the internal perspective approach or the
indigenous knowledge-based approach where
nature, resources and livelihood have been viewed
by the indigenous/traditional communities. The
other is the conventional scientific approach or
global economic and environmental world-view
referred to as the external perspective approach
or top-down approach (Rao, K.S. & others, 2003).

Community-based Management
Important initiatives taken by the government
of India to secure natural resources include
38
38

Joint Forest Management Programme since

1991, the Extension of Provisions of Panchayati
Raj to Scheduled Areas Act (PESA), 1996, the
Biological Diversity Act 2002 and more recently
the Scheduled Tribes and Other Traditional Forest
Dwellers (Recognition of Forest Rights) Act 2006.
Biological Diversity aims to promote conservation,
sustainable use and equitable sharing of benefits
of Indias biodiversity resources, including habitats,
domesticated stocks etc on public and private lands.
With this in view it provides for the establishment
of a National Biodiversity Authority (NBA),
State Biodiversity Boards (SBB) and Biodiversity
Management Committees (BMC) at the level of
Panchayats (gram, taluk, zilla) municipalities and
corporations. The Biological Diversity Act included
provisions for the constitution of Biodiversity
Management Committees. The main function of
the BMC is to prepare Peoples Biological Register
consulting with local people.
The peoples Biodiversity Register Project
(PBRP) was commenced as a pilot project
in Kerala in 1997 (The detailed statistics on
Peoples Biodiversity Register in Kerala is given
in appendix 1). It was considered necessary tool
for recognising the range of local knowledge,
rewarding and promoting the use of traditional
knowledge, skills, techniques and conservation
practices, encouraging inter-community transfer
of knowledge. It strongly believes that community
register could be used to protect biodiversity and
local knowledge. The following section will discuss
about its implementation in Wayanad district in
Kerala. The key evaluation criteria used in the
framework includes: Relevance i.e., the extent to
which the objectives of PBRs are consistent with
beneficiaries and donors policies. Effectiveness,
i.e., the extent to which the PBRs objectives are
achieved and Efficiency i.e., how economically
resources are converted to results and how it
provided food security to tribals in Wayanad.

Wayanad district
Considering the ecological importance,
Wayanad district in northern Kerala is selected for
the analysis. The district lies at a height of 700-2100
Kurukshetra

April 2012

The study included a subset of households

who make use of forest resources. Location of
the households near to or inside the forest area is
one of the important factor, which is hypothesized
to influence the extent of dependence. Group
discussions were conducted with households
near to and inside the forest. Three hamlets were
purposively selected from Thirunelli panchayat.
During the discussion it was found that most of
the households are afraid of exposing the details
about their resource collection from the forest.
Interviews with tribal promoters revealed that
they are afraid of officials, especially forest officials
and hence are reluctant to reveal the facts. It was
with the help of tribal promoters working in the
consecutive hamlets that researcher was able to
collect information regarding their interaction
with the forest. The overall dependence on forest
by the sample households for various purposes is
given in Table 1.
Table 1 Purpose of forest visits
Particulars of resources collected
Collection of fuelwood
Collection of NTFP for sale
Collection of tubers/fruits/leaves
Fishing
Fodder
Bamboo (for own purpose or for sale)
Source: Survey

Income for all the sample households where

obtained from agricultural wage labour and
Mahatma Gandhi National Rural Employment
Kurukshetra

April 2012

Guarantee Programme. MGNREGP works in

Thirunelli were mainly fencing and forestry works.
The NTFP collected from forest for sale mainly
includes medicinal herbs. Edible items collected
are taken home for food. Details of items collected
from forest are given below.
Table 2 Items collected from forest
NTFP collected for sale
Wild pepper
Wild turmeric
Kundirikkam
Asparagus
Kurumthotti
Kakkukai
Honey
Wild bitter guard
Tuber items
Venni
Nooran
Vellan
Fruits/vegetables
Gooseberries
Wild jack fruit
Bamboo seed
Guava
Mushroom
Fish
Source: Survey data

Indigenous Knowledge and Biodiversity

conservation
The shrinking of the flora and fauna have
resulted in the retreat of medicinal knowledge
and use of these natural resources by the adivasis.
Deforestation and alienation of adivasi land have
reduced the use of traditional medicinal plants and
other resources by these people. The food security
of Wayanads tribal people is in a threatened
situation because of the disappearance of many
species of plants, animals and fishes which they
collect from their home gardens and surroundings.
The main reason of poverty and malnutritioninduced diseases among the tribal people is
depletion of biodiversity. In the early periods ragi,
little millets, paddy, vegetables and tubers were
cultivated by them. Now cash crop cultivation is
39

39

m above sea level, on the north-eastern part of

Kerala. Its geographical area is 2131 sq. km(Profile
of the district given in appendix 2). The population
of the district is 7,80,619. Wayanad has the highest
concentration of tribals, constituting (136062)
17.43 percent of the total tribal population in
Kerala. Major communities in Wayanad are Paniyas
(44.77 percent), Mullu Kuruman (17.51 percent),
Kurichya (17.38 percent), Kattunaickan (9.93
percent), Adiyan (7.10 percent), Urali Kuruman
(2.69 percent) and others (0.61 percent). These
tribal communities mainly are marginal farmers,
agricultural labourers and forest dependents.

prevalent in Wayanad. Many traditional paddy

varieties have disappeared. Earlier many paddy
varieties were there. But now only five varieties are
cultivated, that too only by the Kurichya community.
Excessive use of chemical fertilisers had led to the
disappearance of many fish and indigenous plant
varieties.
Large-scale proliferations of pests that attack
crops were found. Many of them have developed
resistance to insecticides. There is a marked
reduction in the availability of fish, crab and
forest products which had given a strong immune
system to the tribal people. With the reduction of
proper food supply, they now suffer malnutrition
and food insecurity. The social consequences of
the depletion of forest cover and paddy fields in
Wayanad is obvious. Tribal women who earn their
daily wages as labourers in paddy fields are out
of work because of the conversion of paddy fields
to coconut, banana and areca plantations. The
impoverishment of Wayanads biodiversity, is a
crucial issue, especially for the indigenous people
(Madhavan Nair, R., 2002). An estimated fifteen
percent of the plant diversity in the district is highly
threatened. The Community Agro-biodiversity
Centre (CAbC) of the M.S.Swaminadhan Research
Foundation (MSSRF) undertakes activities related
to conservation, enhancement and sustainable
and equitable use of agro-biodiversity and genetic
wealth through the active involvement of tribal
communities in Wayanad.

Community Biodiversity Register (CBR)

The CBR program was originated with the
concept of Community Register launched by an
NGO, FRLHT in 1995. It focussed on documenting
community based knowledge of medicinal plants
and their uses. The programs name was changed
from Community to Peoples Biodiversity
Register (PBR) in 1995 to reflect knowledge
shared freely among community members. Most
systematic attempt in the preparation of PBRs at the
national level in India was initiated in 1996-98 by
Biodiversity Conservation Prioritization Programme
sponsored by World Wide Fund for Nature (WWF).
40
40

The documentation of biological resources and

associated traditional knowledge (TK) in India are
strongly supported by the state governments and
other public institutions. The state plan for Kerala
has also actively promoted documentation of local
knowledge relating to biodiversity in Peoples
Biodiversity Registers (PBRs). One pilot project has
been completed in Ernakulam District(Kerala). Two
other projects at Panchayat level has been initiated
by the Tropical Botanic Garden Research Institute1
and the Kerala Forest Research Institute.

Peoples Biodiversity Registers (PBRs)

These are registers that document biodiversity
and bioresources and its associated knowledge of
tribal and rural communities of the region. These
registers prepared by the local communities with
technical support of the CAbC in Wayanad, provide
information on the patterns of natural resource
use. The PBR program organises information in
the domain of folk science on the status, uses and
management of living resources. This information
is available with the people who deal with living
resources as part of their daily subsistence activities
as graziers, tribal folks etc. The information may be
purely orally transmitted or contained in palm leaf
manuscripts. These register can be used to promote
sustainable management of natural resources and
disport claims of communities and individuals
about generic resources and knowledge about their
use (Pons, Batugal & Jeffrey Oliver (eds.), 2003).
The PBRs helped the tribal people to identify two
areas like local heritage sites that represent valuable
species and people holding traditional ecological
knowledge sites. The institutional framework for
generating the structured information as a part of
the PBR process is as follows:
In Wayanad, PBRs is in an experimental
phase. The Peoples Biodiversity Register features
the transformation of traditional knowledge
into recorded information as a result of the
communication between local knowledge holders
and bureaucrats, and local knowledge holders and
facilitators. The variables shaping collective action
of PBRs in Wayanad are as follows:
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April 2012

Table 3 Institutional framework of Peoples Biodiversity Registers

Institution

Country

State

District

Taluk

Supervisory
agency

NBA

SBB

ZP-BMC study
group

TP-BMC
Panchayat/
study group Municipality

Village or Ward BMC

study group

Implementing
agency

MoEF, GoI

Nodal agency Educational

designated by institution
SBB
designed by
ZP_BMC

TP-BMC

Educational
institution &
CBOs selected
by BMC

Educational
institutions & CBOs
selected by BMVC

Technical
support
agencies

Technical
support
group (TSG)

TSG

TSG

Local education Local science/

institutions
educational
institutions

TSG

Local body

Village/ward

Source: Madhav, Gadgil, & others (2006), Ecology is for the People: A Methodology Manual for Peoples Biodiversity Register,
Centre for Ecological Sciences & Agharkar Research Institute, National Workshop on Peoples Biodiversity Register, 22-23rd
June, Chennai.
NBA-National Biodiversity Authority, SBB-State Biodiversity Boards, BMC- Biodiversity Manangement Committee

Paniya tribal population, women play a key role in

the management of food species. Processing their
knowledge about specimens, into valuable food
items is the monopoly of women. This knowledge is
transferred to PBRs through NGO to states lowest
level, panchayat. The reputation in this regard
is attached to the individual reputation of the
NGO facilitators. The trust of tribal people in the
representatives of the NGO contributes towards its
reputation in the long run.

The forest of Wayanad, rich in biodiversity

contributes household food security of tribal
communities. The tribals have knowledge about
different leafy vegetables and herbal medicines.
Women are involved with the collection of leafy
vegetables, tubours etc for food. The PBRs is a result
of interface between the NGO facilitators and the
expert knowledge holders of tribal communities
like the Paniyas, Kurichyas, Kattunaikens etc. With
respect to gender, among the knowledgeable
Kurukshetra

April 2012

(The author is Senior IAS Officer and is

currently Secretary to Govt. of Kerala, e-mail :
narayan5@ias.nic.in)
41

41

Collective Action in Wayanad

There is lack of concrete examples where

PBRs has lead to meaningful benefits for tribes. To
quote the activities of CAbC, this is an instrumental
in preparing Peoples Biodiversity Registers (PBRs)
in Wayanad. A core of village volunteers were
selected, formed as a committee, and trained in
preparation of inventories. The management of such
chronicled documents as the Peoples Biodiversity
Register was discussed with the stakeholders and
institutionalized with the help of formal or informal
institutions at the village level. Gender perspectives
were internalized in the process of forming
groups, in the documentation of species and their
associated knowledge. The CAbC collected some
of these traditional varieties, multiplied them and
redistributed to interested farmers.

Electricity from fruits and vegetables

S.Jothimani, M.Marimuthu and M.Paramasivan

urrently, India has a gap in its energy supply

and with further economic growth this is
likely to continue into the future. There is
a demand supply gap in energy of 8% and peak
power of 12.6% for the last decade and this gap
has widened in the last 3 years. Even if all the ultra
supercritical power projects are brought online,
the gap is likely to persist by the time they are
implemented owing to higher energy intensity of
the economy due to industrialisation and the very
low Indian per capita electricity consumption.
This situation is particularly exacerbated at the
rural level. It is estimated that only about 80% of
villages in India are electrified, and that only 44%
of rural households are actually electrified.

Sources and discovery of electricity

There are six basic sources used for generating
electricity. They are heat, light, friction, pressure,
magnetism and chemical action. Of these,
magnetism is the most important, contributing
by far the largest portion of electrical production
worldwide.
Power
generators,
whether
hydroelectric or fuelled by coal, oil, gas or nuclear
power, all use magnetism as the actual means of
electricity generation. Light, acting upon solar
panels, is slowly gaining momentum, but has yet
to make great inroads in commercial electricity
production because of its cost. Electricity
generated directly by heat, pressure and friction
tend to be either very small--the microvolt output
of a thermistor when exposed to heat, or the
equally small output of a crystal microphone when
subjected to sound pressure--or uncontrollable,
as in the case of lightening, caused by friction.
Chemical action in the form of batteries is both
the oldest means of producing electrical current,
and has had a great impact on our modern way of
life.

dissecting. He thought that electricity was of

animal origin and could be found only in living
tissues. A few years later, in 1800 Alessandro Volta
discovered that electricity could be produced
through inorganic means. The Daniell cell was a
great improvement over the existing technology
used in the early days of battery development. A
later variant of the Daniell cell called the gravity
cell or crowfoot cell was invented in the 1860s by a
Frenchman named Callaud and became a popular
choice for electrical telegraphy.
Like electrolytic solutions in ordinary batteries,
fruits contain substances such as ascorbic acid,
citric acid and NADH (chemical that generates
cellular energy). These chemicals act as electrolytes
and then undergo electrolysis. Electrolysis means
a chemical change produced by passing electric
current through an electrolyte. The electrons
flow from the cathode to the anode through the
electrolytes (juice). The cathode is the negative
electrode, which could be the copper wire, and the
anode is the positive electrode, which could be the
zinc wire. This process generates electricity just
the same way as a voltaic battery. Acidic foods can
chemically generate an electric current.

In 1791 Luigi Galvani discovered electrical

activity in the nerves of the frogs that he was
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April 2012

Citrus Fruit
Acidic or Citrus fruits are best to conduct
or even generate electricity. Examples include
Grape Fruit, Lime and Orange. Acid in the fruits
reacts with water and generates Hydrogen which
is in ionic form and is positively charged (it lacks
electrons). The acid takes electrons from the metal
wire which is inserted in the fruit. This movement
of charge helps in conducting or even generating
electricity.
The fruit juice is similar with metals and acids:
a small amount of metal dissolves into solution
and then there is an equilibrium. But if two
different metals (Copper and Zinc) are inserted
into fruits, the more active metal (zinc) bumps the
more noble metal (copper) out of fruit solution.

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April 2012

The acidic juice allows a small amount of zinc and

copper to dissolve in solution. But the zinc has a
stronger propensity to go into solution so it drives
the copper back out of solution. The net result is
that copper dissolves from the copper electrode
and deposits on the zinc electrode. Copper metal
thus moves from the copper electrode to the zinc
electrode (eventually completely coating it) in fruit
juice. Copper, like all metals (and all materials)
has electrons. When the copper dissolves into
solution it leaves some of its electrons behind on
the copper electrode and dissolves into solution as
a positively charged ion, but those electrons that
dont travel through the solution with the copper
ions, must travel to the zinc electrode through
the wire. This movement of electrons is electrical
current. This is what any battery is: two different
metals with a conductive solution between them.
So its not that the orange produces electricity,
it is that copper plus zinc plus orange juice as the
conductive electrolyte make a battery.
As a conductive solution, any electrolyte
whether it is an acid, base or salt solution, which
become ions when dissolved in water. They
dissociate into particles of opposite charges. It
is the ions that render the water conductive to
electricity. As a matter of fact, the positive ions
migrate to the negative electrode and vice versa
for the negative ions. The lemon battery works
well because the lemon juice is acidic. Try the
same setup with other types of solutions. As you
may know, other fruits and vegetables also contain
juices rich in ions and are therefore good electrical
conductors.

43

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India is the largest producer of fruits and

the second largest producer of vegetables in
the world. At 180 Million MT/year in 2006-07,
the annual production of fruits and vegetables
in the country accounted for 18% of the total
agricultural production. It is expected to touch
300 Million tonnes by 2011. Being fragile, fruit
& vegetables are prone to damage by virtue of
ambient conditions Deterioration also occurs
during inevitable transportation from regional and
clustered cultivation area to consumption centres.
The biological process of ripening also reduces
the shelf life of the produce. All this results show
that the post harvest losses of about 25 40 % of
production, leading to low per capita availability
of fruits and vegetables in India. During the higher
production period with less demand, fruits and
vegetables can be used for operating household
LED clock, calculators and to glow LED/LCD lamps.

Like any battery, batteries made from fruits

and vegetables have a limited life. The electrodes
undergo chemical reactions that block the flow
of electricity. The electromotive force diminishes
and the battery stops working. Usually, the
hydrogen produces at the copper electrode and
the zinc electrode acquires deposits of oxides
which act as a barrier between the metal and the
electrolyte. This is referred to as the electrodes
being polarized. To achieve a longer life and
higher voltages and current flows, it is necessary
to use electrolytes better suited for the purpose.
Commercial batteries, apart from their normal
electrolyte, contain chemicals with an affinity
for hydrogen which combine with the hydrogen
before it can polarize the electrodes.

Electric potential (Volts) in various fruits

and vegetables with different
metals of electrodes

Fruits

Electrodes
Zinc/Steel

Copper/
Steel

Zinc/Copper

Apple

0.27

0.39

0.82

Orange

0.29

0.34

0.76

Carrot

0.29

0.31

0.75

Banana

0.26

0.37

0.73

Lime

0.30

0.25

0.71

Tomato

0.30

0.29

0.70

Lemon

0.30

0.33

0.70

Potato

0.23

0.31

0.64

Cucumber

0.26

0.29

0.60

The fruit or vegetable that had the strongest

current flow was definitely the lemon with 2 micro
amps. The least was the red potato with 0 micro
amps. In terms of the resistance measured in
ohms, the potato had the highest resistance rating
with the probes close together with 6.0 to 9.5
ohms. The smallest rating with the probes close
together was the banana with a rating of 3.0 to 4.0
ohms. Far apart, the highest rating was the banana
ranging from 28.0 to 30.0 ohms. The smallest
rating with the probes far apart was the apple. It
ranged from 10.0 to 19.0 ohms.acidic fruits and
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44

vegetables seem to have a stronger current flow.

For resistance, it seemed that the more water
in the fruit or vegetable, the less the resistance
rating. This is because water is a conductor.
Physical traits such as fruit weight, diameter,
colour, firmness, and elasticity. Chemical traits
were dry matter weight, titratable acidity, pH, and
the contents of soluble solids, sugars, lycopene,
carotene, and 12 aroma volatiles. A panel of
trained assessors quantified sensory attributes:
flavour (sweetness and sourness), aroma
(overall aroma intensity, together with candy,
lemon, citrus fruit, and pharmaceutical aromas)
and texture (firmness, meltiness, mealiness,
juiciness, and skin difficult to swallow) affect
the quantum of electricity produced from fruits
and vegetables. The magnitude of electricity
generated by the particular fruits / vegetables can
be correlated with the concentration of principle
chemical compounds present in it. Therefore, the
magnitude of electricity can be used to quantify
/ qualify the organic compounds such as organic
acids, pigments, aroma, alkaloids and other
pharmaceutical chemicals etc present in the fruits
and vegetables.
While listening to lessons about chemistry,
many students may wonder why it was ever
invented, if it was really ever necessary to invent
it and if the world would be better off without it.
The small experiments that follow are intended to
interest these students in the study of chemistry
and electrical phenomena. These simple and
(it is hoped) interesting experiments can teach
the fundamental concepts of electricity and
chemistry without asking much of the student.
Many of these demonstrations are easily adapted
to various configurations and each can be done
independently or as part of a full curriculum.
(The authors are from Agricultural College
and Research Institute, Agricultural University,
Killikulam, Vallanadu 628 252, Thoothukudi
District, TamilNadu, e-mail : subbiahjothimani@
gmail.com)
Kurukshetra

April 2012

CARBON CREDIT AN ENVIRONMENT MANTRA

Dr. R. Amsaveni Mrs. S. Gomathi
India signed and ratified the Protocol in August, 2002 and has emerged as a world leader in
reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs). India
is the second largest provider of CDM project and Certified Emission Reductions (CERs) to
annexure I countries. India is the beneficiary as far as carbon credits is concerned and is also
in trading of carbon product through Indias multi-commodity exchange.

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April 2012

many types of ecosystems. Deserts may expand

into existing range lands, and features of some of
our national parks may be permanently altered.
Global warming is affecting plants, animals,
humans and the earth. We need to learn how to
conserve our use of fossil fuels to minimize carbon
dioxide production. This will slow down the effects
of global warming. The impacts of climate change
are not evenly distributed the poorest countries
and people will suffer earliest and most. And if
and when the damages appear it will be too late
to reverse the process. Thus we are forced to look
a long way ahead. So our country has introduced

45

45

lobal Warming is the increase of the Earths

average surface temperature due to a buildup of greenhouse gases in the atmosphere.
It may be caused due to climate change, Rapid
industrial growth, increased energy consumption,
increased carbon dioxide and other green house
gas emission. Climate Change is a broader term
that refers to long-term changes in climate,
including average temperature and precipitation.
Rising global temperatures are expected to raise
sea level, and change precipitation and other local
climate conditions. Changing regional climate
could alter forests, crop yields, and water supplies.
It could also affect human health, animals, and

carbon credit trading method for reducing global

warming.

Carbon Credit
Carbon credit has emerged as an important
instrument in the financial market. The primary
goal is to reduce emission of green house gases.
By permitting allowances to be bought and sold,
an operator can seek out the most cost effective
way of reducing its emissions, either by investing in
cleaner machinery and practices or by purchasing
emission from another operator who already has
excess capacity.
Carbon credits are key component of national
and international emissions trading schemes.
They provide means to reduce greenhouse effect
emissions on an industrial scale by capping
total annual emissions and letting the market
assign a monetary value to any shortfall through
trading. These credits can be exchanged between
businesses and can be bought or sold at prevailing
market prices in international markets. Credits can
be used between trading partners and around the
world to finance carbon reduction schemes. There
are many companies that sell carbon credits to
commercial and individual customers interested
in lowering their carbon footprint on a voluntary
basis. This carbon off setters purchase credits
from an investment fund or a carbon development
company that has accumulated credits from
individual projects. The quality of the credits is
partly based on the validation process and partly
on the sophistication of the fund or development
company that acts as the sponsor to the carbon
project, the reflection of which can be seen in
the price. Typically, voluntary units have less
value than the units sold through the rigorouslyvalidated Clean Development Mechanism.

global warming and urged to reduce the emission

of harmful gases that lead to green house gas that
resulting to global warming and many countries
came together and signed an agreement named as
the Kyoto protocol. The Kyoto Protocol is a legally
binding agreement that arose out of the United
Nations Framework Concentration on Climate
Change (UNFCCC) to tackle climate change through
a reduction of green house gas emissions. The
Countries (those listed in Annex I) are legally bound
to reduce man-made green house gases emissions
by approximately 5.2%. Individual countries have
their own reduction targets outlined in Annex B of
the Kyoto Protocol. It was adopted in Kyoto, Japan,
on 11th December 1997. The main aim of Kyoto
protocol is to make Stabilization of greenhouse
gas concentrations in the atmosphere at a level
that would prevent airpollution interference with
the climate system.

Kyotoprotocol In India
India signed and approved the Protocol in
the year of August, 2002. Since India is exempted
from the framework of the treaty, it is expected
to gain from the protocol in terms of transfer of
technology and related foreign investments. The
major responsibility of curbing emission rests with
the developed countries, which have accumulated
emissions over a long period of time.

Kyoto Mechanism
Kyoto is a cap and trade system that
imposes national caps on the emissions of Annex I
countries. On average, this cap requires countries
to reduce their emissions 5.2% below their 1990
baseline over the 2008 to 2012 period.
The types of Kyoto mechanisms are:
l

Clean

There are two types of market in carbon

credit:

Emissions

Joint

l Compliance

Clean Development Mechanism

l Voluntary

Market (Annexure I countries)

Market (Non-Annexure countries)

Kyoto Protocol
A decade ago people started to realize the
46
46

Development Mechanism
trading

implementation (JI)

CDM is a mechanism whereby an Annex I party

may purchase emission reductions which arise
from projects located in non-Annex I countries.
The carbon credits that are generated by a CDM
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April 2012

Additional

CDM

Development of cleaner technologies leading

Cdm Market
The CDM market is like any other commodity
market. Majority of the trading is done in the
Primary market. The secondary market is not as
expanded as the primary mainly because of the
high volatility of the carbon prices.

Compliance

Carbon

Buyers

Funds (e.g.: Carbon Fund of World

Bank)
l

Traders

l
l

Provide

Reduce

Provide

Boost

carbon funds for Emission reduction

project implementation,
poverty
electricity,

economic
communities.

Provision

Due

CDM

CDM

Merits

for

carbon

development

in

rural

investment could affect national

development strategies, possibly adversely
affecting national decision making processes.
Until future commitment periods are agreed,
the CDM may not provide incentives for
financing long-term development projects
and strategies.
timeframe may not assist long-term
development strategies as the timeframe is
foreseeable till 2012 only. (Most projects developed with short term perspective).

No

Technology

Still

April 2012

off-grid

to nature and process of complexity

involved, foreign players may dominate
domestic industries for the incentives if
CERs.

Better

Kurukshetra

provide

of cheapest way of purchasing

climate destroying right.

transfer from developed to

developing countries (Due to low cost
structure in developing countries.

and

employment
sequestration,

Merits and Demerits of Carbon Credit

technologies for the company which is
benefiting from generation of CERs.

benefit due to lesser GHGs

Demerits

Joint Implementation (Ji)

Joint implementation is a project-based
mechanism by which one Annex I Party can invest
in a project that reduces emissions or enhances
sequestration in another Annex I Party, and
receive credit for the emission reductions or
removals achieved through that project. The unit
associated with JI is called an Emission Reduction
Unit (ERU). In simple terms Joint Implementation
means transfer of emissions reduction at the
project level.

Environmental

emission.

Emission Trading
Emissions trading (ET) is a mechanism that
enables countries with legally binding emissions
targets to buy and sell emissions allowances
among themselves. Under an emissions trading
system, the quantity of emissions is fixed (often
called a cap) and the right to emit becomes a
tradable commodity. The cap (say 10,000 tones of
carbon) is divided into transferable units (10,000
permits of 1 tones ofcarbon each).

funds can be channelized into building

or improving project, thus reinvesting it for
higher growth.
to sustainable development where countries
have strategic advantage from now in the
terms of pollution.

The Buyers of CERs can be broadly classified

into:

source of foreign investment in

developing countries which act as a catalyst
in developing cleaner technology.

opportunity for less developed countries

under this framework
the mechanism leads to developed
countries emitting more GHG inspite of their
KYOTO caps. Historically they are the culprits
47

47

project are termed Certified Emission Reductions

(CERs), expressed in tones of CO2 equivalent

for GHG emissions. The developed countries

purchase CERs rather than finding new
ways of reducing emissions by technological
development

carbon Credit in India

India comes under the third category of
signatories to UNFCCC. India signed and ratified
the Protocol in August, 2002 and has emerged as a
world leader in reduction of greenhouse gases by
adopting Clean Development Mechanisms (CDMs)
in the past few years. India is the largest beneficiary
country for claiming about 31 % of the total world
carbon trade through CDM. It is expected to rake
in at least Rs 22,500 crore to Rs 45,000 crore over a
period of time and Indian companies are expected
to corner at least 10 per cent of the global market
in the initial year.If India can capture a 10% share
of the global CDM market, annual CER revenues
to the country could range from US$ 10 million to
300 million.

Present Status
In India, due to increased population &
commercial development, cities are facing
problems of MSW (Municipal Solid Waste) disposal.
The urban population in larger towns and cities
in India is increasing at a decadal growth rate of
above 40%. There are no Sanitary Landfill sites in
India at present.
Various processes/technologies available to
reduce the amount of Municipal Solid Waste are
as follows:
l

Physical

(a. Pelletisation)

Biochemical

Thermal

(a. Aerobic Composting b.

Anaerobic Digestion)
(a. Incineration b. Gasification)

Among the above options/technologies

following are considered as favourable to
implement in India.
l

Pelletisation,

Anaerobic

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48

digestion using bio-methanation

technology for production of power,

Production of organic manure using controlled

aerobic composting.

Indias Potential
India has 474 projects registered with the
United Nations, second only to Chinas 680.
However, in terms of CERs, Indias share is just
11.63%, while Chinas is 58.75%. The Indian
government has approved more than 1,455
CDM projects which can potentially make Rs
28,000-30,000 crore in export earnings. India
has the second largest portfolio with a market
share of 12%, trailing only behind China, which
has a whopping market share of 61%. India, on
its part, has generated around 30 million carbon
credits, and approximately 140 million are in
pipeline. Around 225 Indian projects in the fields
of biomass, cogeneration, hydropower, and wind
power with a potential of 225 million CERs have
been registered. At present, the Indian solid waste
management market is witnessing tremendous
growth. Currently it is valued at around $155.56
million (Rs. 728 crores) and is expected to grow
at a rate of around 20 to 25% in the next three to
five years.

Conclusion
The rising pressure on countries to address
climate change has paved the way for the rise of a
multimillion dollar international market for buying
and selling emissions of greenhouse gases. From
the year 2001, the carbon market has captured
the attention of Indian entrepreneurs. Majority
of projects selling carbon credits so far include
renewable energy (such as wind power, biomass
cogeneration and hydropower), energy efficiency
measures in several sectors (such as cement,
petrochemicals and power generation) as well as
the reduction of industrial gases that contribute
to climate change. The carbon credits market is a
liquid market as of now.
(The Dr.R.Amsaveni is Associate Professor,
and Mrs. S.Gomathi is Research Scholar, in
Hindusthan College of Arts and Science, Behind
Nava India, Coimbatore 641 028, e-mail :
amsa_parthi@rediffmail.com and kavingoms@
gmail.com)
Kurukshetra

April 2012