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India Accerating Agriculture Growth


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its about india making a good efforts in agri.

its about india making a good efforts in agri.

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  • 1. India Accelerating Agricultural Growth August 31, 2007 New Delhi
  • 2. Agricultural Sector: Important for economic growth and reducing poverty
    • 70% of population, 75% of poor are in rural areas
    • Agriculture: main source of livelihood for 60% of population
    • Contributes about 20% to GDP
    • Essential role in national food security
  • 3. Key Issues and Challenges
    • Slow down in agricultural GDP growth
      • From 3.5% in mid-80s to 90s to less than 2% in mid-90s to 2000s,
      • Poorest states (MP,Orissa, Rajathan), growth less than 1%
      • Lead to widening rural-urban income gaps
    • Low agricultural productivity
      • Crop yields are low relative to other countries, disparity in yields across states
    • Increasing natural resource degradation
      • Soil erosion, salinity, alkalinity, declining ground water levels
      • Partly due to fertilizer, power and irrigation policies
  • 4. Key Issues and Challenges
    • Subsidies crowding out productivity enhancing investments
      • E.g. irrigation, agric research, extension, rural roads, markets, electrification
      • Subsidies increased from 3% (70s) to 7% (2000s) of Ag GDP, public investments decreased from 3.4% to 1.9% of Ag GDP.
    Source: Chand and Kumar 2004
  • 5. GOI 11 th Plan Priorities & Programs
    • GOI priorities:
      • Accelerate expansion of irrigated area and improve water management in rainfed areas;
      • Bridge the knowledge gap through effective research and extension;
      • Foster diversification to higher value horticulture, fisheries, and animal husbandry;
      • Increase foodgrain productivity for food security;
      • Facilitate access to credit at affordable rates; and
      • Improve farmer access to markets.
  • 6. GOI 11 th Plan Priorities & Programs
    • Water Resources Mgt and Irrigation
      • Accelerated Irrigation Benefits Program to complete major/medium irrigation schemes
      • Challenges for state govts:
        • Weak institutional framework for efficient, sustainable and equitable allocation and use of water
        • Inadequate expenditures for O&M
        • Limited cost recovery encourages wasteful use of water, causing waterlogging/salinity problems
        • Free/highly subsidized power-contributing to declining GW levels
    • Rainfed areas (60% of cropped area)
        • National Rainfed Areas Authority to develop action plan
        • Challenges: consistency and coordination of multiple programs, weak implementation effectiveness
  • 7. GOI 11 th Plan Priorities & Programs
    • Bridging Knowledge Gap
      • GOI increasing resources for strategic and location specific research
      • GOI and states scaling up ATMA approach to improve extension effectiveness
      • Additional central assistance (Rs 25,000 crores) for agriculture development based on state district agricultural development plans
    • Diversification of Production
      • to improve farmer income opportunities
      • GOI National Horticulture Mission, Bharat Nirman rural infrastructure development program (irrigation, rural roads, rural electrification), agricultural market development
  • 8. GOI 11 th Plan Priorities & Programs
    • Foodgrain vs high value agricultural production?
      • Rising incomes driving demand for high value crops
      • 11th Plan: to achieve 4% ag growth target, need to increase foodgrain yields by 2-3% per year to ensure food security and compensate for possible shift to high value production
      • Measures to raise agricultural productivity for both foodgrains and high value crops are therefore critical
  • 9. GOI 11 th Plan Priorities & Programs
    • Improving rural investment climate
      • Storage, movement credit controls removed
      • Pending reforms: institutional and policy framework for land
        • Liberalize land leasing
        • Update land records and modernize land administration
    • Fostering Rural Non-farm sector growth
  • 10. World Bank: Lending Assistance in Agricultural Sector
    • Improving agriculture productivity and competitiveness
      • Water resource management, irrigation system rehabilitation and modernization, strengthening institutions (WUAs) and regulatory framework (allocation and mgt )
      • Strengthening agricultural research and extension system
      • Improving market infrastructure and services
    • Improving natural resource management
      • Support for improved watershed management, participatory forest management,
    • Fostering institutions of the poor
      • Build institutions for the poor (SHGs), facilitate access to credit and links to markets
  • 11. World Bank Assistance to Agricultural Sector
    • Current portfolio: 21 projects, $3.4 billion
    • Analytical and Advisory Activities: recent studies
      • Re-energizing the Agricultural Sector to Sustain Growth and Reduce Poverty
      • Land Policies for Growth and Poverty Reduction
      • Unlocking Opportunities for Forest Dependent People
      • Taking Agriculture to the Market
      • India’s Water Economy: Bracing for a Turbulent Future
      • State agricultural sector reviews