Chapter - 7

Agriculture
and Food
Management
Group 7
Overview of agriculture and allied sectors

•The growth rates of agriculture &

allied sectors have been fluctuating.
The uncertainties in growth in
agriculture are explained by the fact
that more than 50 percent of
agriculture in India is rainfall
dependent, which aggravate the
production risks.
Gross Capital Formation

•The Gross Capital Formation (GCF) in

Agriculture and Allied Sectors relative
to GVA in this sector has been showing
a fluctuating trend.
The Gross Capital Formation in
agriculture and allied sectors as a
proportion to the total GCF showed a
decline, which can be attributed to
reduction in private investment.
Production of Crops

•As per the Fourth Advance Estimates for 2016 - 17 released by Department of
Agriculture, Cooperation and Farmer’s Welfare, the country achieved a record
production of food grains which is higher than the previous record production of
food grains in 2013 – 14
•The record increase in production of food grains attributed to the record
production of rice and wheat
This increase in production of food grains and other crops is mainly on account
of very good rainfall during monsoon 2016 - 17 and various policy initiatives
taken up by the Government
Production and Yield of different crops in India
• 617.8 lakh hectares of area has been covered under Rabi crops for 2017-18 as on
19th January 2018.
• Area coverage under Rabi crops is above 98 per cent of the normal area.
• Agricultural growth in India has been fluctuating since more than 50 per cent of
agriculture in India is rainfall.
Women play a significant and crucial role in agricultural development and allied fields
including in the main crop production, livestock production, horticulture, post-harvest
operations, agro/social forestry, fisheries, etc. is a fact long taken for granted (NCW, 2001).
For
 India ranks first, with 179.8
Mha (9.6 percent of the
global net cropland area) of
net cropland area
according to United States
Geological Survey 2017.

Source: http://orgprints.org/31197/1/willer-lernoud-2017-global-data-biofach.pdf
Input management in Agriculture

● Inputs like seeds, irrigation,fertilisers, credit , machines, technology and

extensive services play an important role in agriculture
● Managing inputs in right proportion can boost the crop productivity
● It also protects loss of soil fertility and doesn’t cause environmental
damage.
● Educational levels of farmers of farmers to to adopt new technologies
also play an important role in this case.
Operational holdings by educational status
Operational holdings by educational status
Out of 138.11 mn farmers 69.3 % were literate.
69.3%

22.5% 22.7% upto 15.4% 1.3% diploma 2.1% graduation

Upto class V Middle class Upto secondary holders and above

About 30% of marginal farmers are illiterate

The graph clearly shows the higher illiteracy in in farmers and percentage fall
sharply as levels of education increases
Use of inputs by agricultural holdings
Use of fertilizers,hybrid seeds and
manure are critical in manufacturing

According to survey (out of total

operational holding)

● Only 9.4% use certified seeds

● 27% used notified seeds
● Only 9.8% used hybrid seeds

Note- These inputs are used by small

and marginal farmers( who hold 80%
of land) that increases soil fertility
Government scheme
Direct Benefit transfer

● 100% subsidy on various fertilizer grades to fertilizer companies

● The sale of fertilizers to buyers will made through point of sale devices installed
in retail shops
● Uses Aadhaar seeded database to provide transaction visibility and
transparency
● Implemented in 17 pilot districts
● It requires- installation of Pos devices in retail shops, training of retailers to use
it, stock initialization in Pos devices after verifying physical stocks
Irrigation
All India percentage of net irrigated to
total cropped area is 34.5%

Large segment of cultivation is rainfall

dependent

Only 2 states- Punjab and Up have

more than 50% of net irrigated to
cropped area
Government efforts to improve irrigation
PMKSY(Prime minister Krishi Sinchayee Yojana, 2015)

● In 16-17 1991.2 crores were allocated, 28% more than 15-16

● In 16 -17 8.4 lakh ha area was boughter under it more than previous year(i.e 5.7
lakh ha)
● Target - 12 lakh ha area under it in 17-18
Risk in Agriculture
Scenario as per 2012-13 data-

Less than 5% of agriculture households insuring their crops for wheat and paddy

However numbers are higher for cotton, groundnut and soyabean

Possible reasons for absence of crop insurance-

● No awareness of crop insurance

● No awareness of facilities for crop insurance
● Lack of resources and complicated procedures
● Less geographic coverage of services
Reasons for crop losses
Primarily accounted to erratic weather and less rainfall

Disease/ insects and animals also a reason for crop losses (observed in coconut and Urad)

Reported Losses in 2012-13

July-December ‘12 January to June ‘13

Crop Losses (in Rs) Crop Losses (in Rs)

Cotton 43046 Sugercane 36290

Sugercane 42887 Cotton 22785

Groundnut 28721 Onion 18860

Government Initiatives
Pradhan Mantri Fasal Beema Yojana (PMFBY)- yield index based insurance scheme launched in 2016

Coverage of risks from pre-sowing to post harvest stages

Under this scheme, premiums are paid to insurance companies on an actuarial basis with Farmers paying
low share upto 2% and 1.5% for Food and Oilseed crops for Rabi and Kharif respectively, and upto 5% for
commercial/ Horticultural crops

The balance premium is shared equally by the centre and the state governments

The scheme covers 30% of gross cropped area (GCA) in the year 2016-17 and targets 40% GCA in 2017-18
Impact of PMFBY
Presence in 23 states during Kharif season, 25 states in Rabi season

Premium of 22004 crores for 571 lakh farmer applications and 554 lakh ha area insured for a sum of Rs
202145 crores

By Dec 2017, Rs. 13292 crores approved for 116 lakh farmers, wit hRs. 12020 crores already paid

● 18.3% increase in farmer applications for insurance

● 10.8% increase in Cropped area insured
● 76% increase in sum insured

Target for 2017-18 is 40% of Gross cropped area

Area insured in Kharif Season- Statewise
Madhya Pradesh
has shown most
growth while
Rajasthan,
Maharashtra and
Uttar Pradesh have
declined in Area
insured.

Source: Evaluation of PMFBY. IIM

Ahmedabad
Area insured in Rabi Season- Statewise
Madhya Pradesh
has shown most
growth here as well
with stability in other
states. Karnataka
observed very less
area insured as
compared to 2016

Source: Evaluation of PMFBY. IIM

Ahmedabad
Premiums collected from Farmers-
Statewise Max increase in
premium collection
was from Gujrat,
Karnataka and Tamil
Nadu

Source: Evaluation of PMFBY. IIM

Ahmedabad
Climate Smart Agriculture
Introduced due to variability in temperature and rainfall and extreme weather
conditions to provide farming strategies to farmers as per local conditions

Focuses on-

● Agricultural Productivity
● Resilience to climate change
● Reducing greenhouse gas emission

CSA in India

● Still in Nascent stages

● Climate resilient technology demonstrated in 153 model villages
● 623 contingency plans prepared and circulated to state agriculture departments
for preparedness during weather extremities
Food Management
Quantum of food subsidies released by Foodgrains allocation under NFSA/Non NFSA
Government (2017-18)
Component-wise economic cost of rice
(Rs./Quintal)
Component-wise economic cost of wheat
(Rs./Quintal)
Quantities of wheat and rice sold under
OMSS (Domestic)

OMSS - Open Market Sale Scheme

Agricultural Credit & Marketing Initiatives

● Credit is a critical input in achieving high productivity and

overall production in the agricultural sector. Institutional Credit
helps in delinking the farmers from non-institutional sources of
credit, and increases financial inclusion

● Marketing reform has been undertaken to benefit farmers from

remunerative prices for their produce in the market like electronic
National Agriculture Market (e-NAM)
Agricultural Research & Development
● It is the main source of innovation, which is needed to sustain
agricultural productivity growth in the long-term
● There has been an increasing allocation for it which is manifested
in development of a total 209 new varieties/hybrids for Cereals,
Pulses, Oilseeds, Commercial and Forage crops, tolerant to
various biotic and abiotic stresses with enhanced quality
Food Management

In India, both central and state government are engaged in managing

food security through centralized and decentralized process of
procurement (MSP), allocation and distribution of foodgrains to
consumer (PDS) under National Food Security Act and in maintaining
buffer stocks for emergencies and for price stabilization (OMS
scheme)
The Way Forward

Due to the structural changes being experienced in farming

practices, the farmers should be encouraged to diversify their
income generating sources along with adopting climate smart
agriculture. Also, government should consolidate land to reap the
benefits of Farm mechanisation, contract farming etc.