Agribusiness Policies in India

1. Submitted To :-
Dr. S.K.Goyal
The Course Teacher
Dept. of Business Mgt
Chaudhary Charan Singh Haryana Agricultural
University, Hisar
College of Agriculture
Introduction to Agribusiness Management
(ABM-509)
ASSIGNMENT ON
AGRIBUSINESS POLICIES IN INDIA
Submitted By:-
Dhiraj Anant Kadam
(2016A91MBA)
Kumar N
(2016A92MBA)
Nitin Goyal
(2016A102MBA)

2. Agribusiness Policies in INDIA
THE NEW AGRICULTURE POLICY :-
The National Policy on Agriculture seeks to actualise the vast untapped growth potential of
Indian agriculture, strengthen rural infrastructure to support faster agricultural development,
promote value addition, accelerate the growth of agro business, create employment in rural
areas, secure a fair standard of living for the farmers and agricultural workers and their
families, discourage migration to urban areas and face the challenges arising out of economic
liberalization and globalisation. Over the next two decades, it aims to attain:
The salient features of the new agricultural policy are:
1. Over 4 per cent annual growth rate aimed over next two decades..
2. Greater private sector participation through contract farming.
3. Price protection for farmers.
4. National agricultural insurance scheme to be launched.
5. Dismantling of restrictions on movement of agricultural commodities throughout the
country.
6. Rational utilization of country's water resources for optimum use of irrigation
potential.
7. High priority to development of animal husbandry, poultry, dairy and aquaculture.
8. Capital inflow and assured markets for crop production.
9. Exemption from payment of capital gains tax on compulsory acquisition of
agricultural land.
10. Minimize fluctuations in commodity prices.
11. Continuous monitoring of international prices.
12. Plant varieties to be protected through a legislation.
13. Adequate and timely supply of quality inputs to farmers.
14. High priority to rural electrification.
15. Setting up of agro-processing units and creation of off-farm employment in rural
areas.

3. Incentives for Agriculture :
The Government will endeavour to create a favourable economic environment for increasing
capital formation and farmer’s own investments by removal of distortions in the incentive
regime for agriculture, improving the terms of trade with manufacturing sectors and bringing
about external and domestic market reforms backed by rationalization of domestic tax
structure. It will seek to bestow on the agriculture sector in as many respects as possible
benefits similar to those obtaining in the manufacturing sector, such as easy availability of
credit and other inputs, and infrastructure facilities for development of agri-business
industries and development of effective delivery systems and freed movement of agro
produce.
Consequent upon dismantling of Quantitative Restrictions on imports as per WTO
Agreement on Agriculture, commodity-wise strategies and arrangements for protecting the
grower from adverse impact of undue price fluctuations in world markets and for promoting
exports will be formulated. Apart from price competition, other aspects of marketing such as
quality, choice, health and bio-safety will be promoted. Exports of horticultural produce and
marine products will receive particular emphasis. A two-fold long term strategy of
diversification of agricultural produce and value addition enabling the production system to
respond to external environment and creating export demand for the commodities produced
in the country will be evolved with a view to providing the farmers incremental income from
export earnings. A favourable economic environment and supportive public management
system will be created for promotion of agricultural exports. Quarantine, both of exports and
imports, will be given particular attention so that Indian agriculture is protected from the
ingress of exotic pests and diseases.
In order to protect the interest of farmers in context of removal of Quantitative Restrictions,
continuous monitoring of international prices will be undertaken and appropriate tariffs
protection will be provided. Import duties on manufactured commodities used in agriculture
will be rationalized. The domestic agricultural market will be liberalized and all controls and
regulations hindering increase in farmers’ income will be reviewed and abolished to ensure
that agriculturists receive prices commensurate with their efforts, investment. Restrictions on
the movement of agricultural commodities throughout the country will be progressively
dismantled.

4. The structure of taxes on foodgrains and other commercial crops will be reviewed and
rationalized. Similarly, the excise duty on materials such as farm machinery and implements,
fertilizers, etc., used as inputs in agricultural production, post harvest storage and processing
will be reviewed. Appropriate measures will be adopted to ensure that agriculturists by and
large remain outside the regulatory and tax collection systems. Farmers will be exempted
from payment of capital gains tax on compulsory acquisition of agricultural land.
Risk Management:
Despite technological and economic advancements, the condition of farmers continues to be
unstable due to natural calamities and price fluctuations. National Agriculture Insurance
Scheme covering all farmers and all crops throughout the country with built-in provisions for
insulating farmers from financial distress caused by natural disasters and making agriculture
financially viable will be made more farmer-specific and effective. Endeavour will be made
to provide a package insurance policy for farmers, right from sowing of crops to post-harvest
operations, including market fluctuations in the prices of agricultural produce.
In order to reduce risk in and impart greater resilience to Indian agriculture against droughts
and floods, efforts will be made for achieving greater flood-proofing of flood prone
agriculture and drought-proofing of rainfed agriculture for protecting farmers from vagaries
of nature. For this purpose, contingency agriculture planning, development of drought and
flood resistant crop varieties, watershed development programmes, drought prone areas and
desert development programmes and rural infrastructure development programmes, will
receive particular attention.
The Central Government will continue to discharge its responsibility to ensure remunerative
prices for agricultural produce through announcement of Minimum Support Prices policy for
major agricultural commodities. The food, nutrition and other domestic and exports
requirements of the country will be kept in view while determining the support prices of
different commodities. The price structure and trade mechanism will be continuously
reviewed to ensure a favourable economic environment for the agriculture sector and to bring
about an equitable balance between rural and urban incomes. The methodology used by the
Commission on Agricultural Costs and Prices (CACP) in arriving at estimates of cost of
production will be periodically reviewed. The price structure of both inputs and outputs will
be monitored to ensure higher returns to the farmers and bring about cost effectiveness

5. throughout the economy. Domestic market prices will be closely monitored to prevent
distress sales by farmers. Public and cooperative agencies undertaking marketing operations,
will be strengthened.
The Government will enlarge the coverage of futures markets to minimize the wide
fluctuations in commodity prices as also for hedging their risks. The endeavour will be to
cover all important agricultural products under futures trading in course of time.
Investments in Agriculture
The agriculture sector has been starved of capital. There has been a decline in the public
sector investment in the agriculture sector. Public investment for narrowing regional
imbalances, accelerating development of supportive infrastructure for agriculture and rural
development particularly rural connectivity will be stepped up. A time-bound strategy for
rationalisation and transparent pricing of inputs will be formulated to encourage judicious
input use and to generate resources for agriculture. Input subsidy reforms will be pursued as a
combination of price and institutional reforms to cut down costs of these inputs for
agriculture. Resource allocation regime will be reviewed with a view to rechannelizing the
available resources from support measures towards assets formation in rural sector.
A conducive climate will be created through a favourable price and trade regime to promote
farmers’ own investments as also investments by industries producing inputs for agriculture
and agro-based industries. Private sector investments in agriculture will also be encouraged
more particularly in areas like agricultural research, human resource development, post-
harvest management and marketing.
Rural electrification will be given a high priority as the prime mover for agricultural
development. The quality and availability of electricity supply will be improved and the
demand of the agriculture sector will be met adequately in a reliable and cost effective
manner. The use of new and renewable sources of energy for irrigation and other agricultural
purposes will also be encouraged.
Bridging the gap between irrigation potential created and utilized, completion of all on-going
projects, restoration and modernization of irrigation infrastructure including drainage,
evolving and implementing an integrated plan of augmentation and management of national

6. water resources will receive special attention for augmenting the availability and use of
irrigation water.
Emphasis will be laid on development of marketing infrastructure and techniques of
preservation, storage and transportation with a view to reducing post-harvest losses and
ensuring a better return to the grower. The weekly periodic markets under the direct control
of Panchayat Raj institutions will be upgraded and strengthened. Direct marketing and
pledge financing will be promoted. Producers markets on the lines of Ryatu Bazars will be
encouraged throughout the width and breadth of the country. Storage facilities for different
kinds of agricultural products will be created in the production areas or nearby places
particularly in the rural areas so that the farmers can transport their produce to these places
immediately after harvest in shortest possible time. The establishment of cold chains,
provision of pre-cooling facilities to farmers as a service and cold storage in the terminal
markets and improving the retail marketing arrangements in urban areas, will be given
priority. Upgradation and dissemination of market intelligence will receive particular
attention.
Setting up of agro-processing units in the producing areas to reduce wastage, especially of
horticultural produce, increased value addition and creation of off-farm employment in rural
areas will be encouraged. Collaboration between the producer cooperatives and the corporate
sector will be encouraged to promote agro-processing industry. An interactive coupling
between technology, economy, environment and society will be promoted for speedy
development of food and agro-processing industries and building up a substantial base for
production of value added agro-products for domestic and export markets with a strong
emphasis on food safety and quality. The Small Farmers Agro Business Consortium (SFAC)
will be energized to cater to the needs of farmer entrepreneurs and promote public and private
investments in agri-business.

7. Government Programmes and Regulations for Agribusiness
Government Programmes for Agribusiness:-
Both the central government and state governments have devised programmes to woo the
entrepreneurs for setting up agribusiness in India. They may be classified as programmes
falling under small-scale industries, Khadi village industries, small and medium industries,
large industries based on the finance required for investment. Apart from these to harness the
export market after signing the WTO agreement. They include conversion of Export
Processing Zones (EPZ) into Special Economic Zones (SEZ), establishment of Agri-export
zones. For which government is attracting private investors to make investment in
infrastructure development like cold storage chains, improvement in road, rail, sea and air
transport systems.
The Ministry of Small Scale Industries & Agro and Rural Industries designs and implements
the policies through its field organizations for promotion and growth of small and tiny
enterprises, including the coir industries. The Ministry also coordinates with other Ministries
/Departments on behalf the Small Scale Industries (SSI) sector.
The implementation of policies and various programmes/schemes for providing infrastructure
and support services to small enterprises is undertaken through its attached office, namely the
Small Industry Development Organization (SIDO), statutory bodies/other organizations
likely Khadi and Village Industries Commission (KVIC) & Coir Board a Public Sector
Undertaking - National Small Industries Corporation (NSIC) and three training institutes -
National Institute of Small Industry Extension Training (NISIET), Hyderabad, National
Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi and
Indian Institute of Entrepreneurship (IIE), Guwahati
Agriculture is a way of life, a tradition, which, for centuries, has shaped the thought, the
outlook, the culture and the economic life of the people of India. Agriculture, therefore, is
and will continue to be central to all strategies for planned socio-economic development of
the country. Rapid growth of agriculture is essential not only to achieve self-reliance at
national level but also for household food security and to bring about equity in distribution of
income and wealth resulting in rapid reduction in poverty levels.

8. Indian agriculture has, since Independence, made rapid strides. In taking the annual food
grains production from 51 million tonnes in early fifties to 206 million tonnes at the turn of
the century, it has contributed significantly in achieving self-sufficiency in food and in
avoiding food shortages.
Over 200 million Indian farmers and farm workers have been the backbone of India’s
agriculture. Despite having achieved national food security the well being of the farming
community continues to be a matter of grave concern for planners and policy makers. The
establishment of an agrarian economy which ensures food and nutrition to India’s billion
people, raw materials for its expanding industrial base and surpluses for exports, and a fair
and equitable reward system for the farming community for the services they provide to the
society, will be the mainstay of reforms in the agriculture sector.
1) Entrepreneurial Training institutes:-
There are three institutes engaged in training of small-scale entrepreneurs. These are
Indian Institute of Entrepreneurship (IIE), Guwahati, National Institute of Small
Industry Extension Training (NISIET), Hyderabad, National Institute for
Entrepreneurship and Small Business Development (NIESBUD), New Delhi.
2) Fragrance & Flavour Development Centre (FFDC), Kannauj:-
Fragrance & Flavour Development Centre (FFDC) has been set up as an autonomous
body in the year 1991 by Govt. of India with the assistance of UNDP/UNIDO and
Govt. of U.P/UNDP/UNIDO has provided technical expertise and imported
equipments. Govt. of U.P has provided land and building while Govt. of India has
been contributing for indigenous equipments and recurring expenditure. Main
objectives of the Centre is to serve, sustain and upgrade the status of farmers and
industry engaged in the aromatic cultivation and its processing, so as to make them
competitive both in the local and global market.
3) Export Processing Zones:-
The export zones (EPZ) set up as enclaves, separated from the Domestic Tariffs Areas
by fiscal barriers, are intended to provide a competitive duty free environment for
export production. There are four EPZs set up by the Government at Noida(Uttar
Pradesh), Chennai (Tamil Nadu), Palta (West Bengal) and Vishakapatnam (Andhra
Pradesh).

9. 4) Special Economic Zones:-
A new scheme for setting up of Special Economic Zones (SEZs) in the country to
promote exports was announced by the Government in the Export and Import Policy
on 31st March, 2000. The policy provided for setting up of SEZs in the public,
private, joint sectors or by State Governments. It was also announced that some of the
existing Export Processing Zones would be converted into SEZs. Accordingly, the
Government has issued notification on 1-11-2000 for conversion of the existing
Export Processing Zones at Kandla (Gujarat), Santa Cruz(Maharashtra) and Cochin
(Kerala) into SEZs. Notification has also been issued for conversion of the private
sector EPZ at Surat (Gujarat) into the Special Economic Zone at the request of the
promoters.
5) Export Oriented Units (EOU):-
The export Oriented units (EOU) scheme introduced in the early 1981, is
complementary to the EPZ scheme. It adopts the same production regime but offers a
wide option in locations with reference to factors like source of materials, ports of
export, hinter land facilities, and availability of technological skills, existence of
industrial base and the need for a large area of land for the project. And 1,536 units
are in operation under the EPU scheme as on March, 2001.
6) Product range:-
EOUs are mainly concentrated in textiles and yarn, food processing, electronics,
chemicals, plastics, granites and minerals/ores. Majority of units are located in Tamil
Nadu, Andhra Pradesh, Karnataka, Maharashtra and Gujarat.
7) Export Promotion Industrial Park (EPIP) Scheme:-
A centrally sponsored “ Export Promotion Industrial Park (EPIP) Scheme has been
introduced in 1993-94 with a view to involving the State Governments in the creation
of infrastructure facilities for export oriented production. The scheme provides that 75
% of the capital expenditure incurred towards creation of such facilities, ordinarily
limited to Rs. 10 crores in each case, will be met from a central grant to the State
Governments.

10. 8) New Anna Marumalarchi Thittam:-
The State Government of Tamil Nadu has introduced the New Anna Marumalarchi
Thittam in April 2002 to set up agribusiness units with a minimum investment of Rs
35 lakhs at the rate of one unit in each block. This scheme provides scope for setting
385 agribusiness units in Tamil Nadu.
9) Agri-Clinic and Agribusiness Centres:-
Small Farmers Agribusiness Consortium in co-operation with MANAGE has drawn
plans to provide training on management capacity building for those willing to set up
Agriclinics and Agribusiness Centres either as individual or a group five (four
agricultural and allied graduates and one management graduate) with a maximum
loan assistance of Rs. 10 lakhs for individuals and Rs 50 lakhs for a group of five
entrepreneurs.
Agri Related Yojanas
 Soil Health Cards:-
Under the scheme, the government plans to issue soil cards to farmers which will
carry crop-wise recommendations of nutrients and fertilisers required for the
individual farms to help farmers to improve productivity through judicious use of
inputs. All soil samples are to be tested in various soil testing labs across the country.
Thereafter the experts will analyse the strength and weaknesses (micro-nutrients
deficiency) of the soil and suggest measures to deal with it. The result and suggestion
will be displayed in the cards. The government plans to issue the cards to 14 crore
farmers.
The scheme aims at promoting soil test based and balanced use of fertilisers to enable
farmers realise higher yields at lower cost.
This will help farmers to make judicious use of fertilizers. Around 2000 model retail
outlets of fertilizer componies will be provided with soil and seed testing facilities in
the next three years. It is a policy to convert city waste to compost under
SWACCHA BHARAT ABHIYAN will come out soon. The target for soil health
card scheme coverage has been set to 14 crore for holdings by 2017.

11.  Parmparagat Krishi vikas Yojana :-
It is launched for bringing 5 lac acres of rainfed areas under organic farming.
“Paramparagat Krishi Vikas Yojana” is an elaborated component of Soil Health
Management (SHM) of major project National Mission of Sustainable Agriculture
(NMSA). Under PKVY Organic farming is promoted through adoption of organic village
by cluster approach and PGS certification.
Expected outcomes:-
The Scheme envisages:
Promotion of commercial organic production through certified organic farming.
The produce will be pesticide residue free and will contribute to improve the health of
consumer.
It will raise farmer's income and create potential market for traders.
It will motivate the farmers for natural resource mobilization for input production.
 Unified Agricultural Marketing :-
Among various states of the country, Karnataka has been the forerunner in market
reforms and in devising innovative practices to improve agricultural markets and
competitiveness. The state was first in implementing Model APMC Act and it has
been piloting new practices on its own. In order to take advantage of modern
technology to improve agricultural marketing, the state prepared a plan in 2012–13
with the assistance of NCDEX (National Commodity and Derivatives Exchange) Spot
Exchange for automation of auction process in mandis (primary agricultural markets
where producers sell their agricultural produce).
The plan involves creation of transparent, integrated e-trading mechanism coupled
with facilities for grading and standardisation to facilitate seamless trading across
mandis (APMCs). The approach was to integrate all such APMCs with major
consumption market to fetch remunerative prices to farmers. The plan has been
implemented through Rashtriya e-Market Services (ReMS) Private Limited Company,
which is a joint venture created by the state government and NCDEX Spot

12. Exchange. ReMS offers automated auction and post-auction facilities (weighing,
invoicing, market fee collection, accounting), assaying facilities in the markets,
facilitation of warehouse-based sale of produce, commodity funding and price
dissemination. NCDEX is also implementing a unified market platform, whereby all
mandis in the state are being unified for single trading.
The unified online agricultural market initiative was launched in Karnataka on 22
February 2014. A total of 105 markets spread across 27 districts have been brought
under the Unified Market Platform (UMP) as of March 2016. Under this initiative,
every farmer who brings produce to the APMC market is given an identification
number for the lot brought into the mandi. The farmer has a choice to use the common
platform or the platform of commission agent for auction of the produce. These lots
are then assayed and information about quantity and quality is put on the portal
of ReMS.
Buyers or traders who want to buy produce from the farmers are required to get the
unified market licence, register themselves with ReMS by paying nominal fee, and are
required to keep some security in the bank. Each trader is given a username and
password. Any prospective buyer can bid for the produce online from anywhere using
her/his username and password. A trader can revise the bid upward any number of
times before closure of the bidding time. After closure of auction period, the bids are
flashed on television screens put up in the mandis and on the portal of ReMS.
Thereafter, the producer/seller is required to give his acceptance for the bid. A seller
has the right to reject the bid, in which case a second round of bidding takes place on
the same day and in the same way. A bidder is required to keep a pre-bid margin of
5% of value of the lot marked for sale with ReMS before opening of the
tender. ReMS charges 0.2% of the value of the transacted produce for providing
various online services.
 Minimum Support Price Policy:-
Minimum Support Price is the price at which government purchases crops from the
farmers, whatever may be the price for the crops. Minimum Support Price is an
important part of India’s agricultural price policy.

13. The MSP helps to incentivize the framers and thus ensures adequate food grains production
in the country. I gives sufficient remuneration to the farmers, provides food grains supply to
buffer stocks and supports the food security programme through PDS and other programmes.
 Procurement Price Policy:-
Sometimes, the government procures at a higher price than the MSP. Here, the price
will be referred as procurement price. The procurement price will be announced soon
after the harvest. Normally, the procurement price will be higher than the MSP, but
lower than the market price. The price at which the procured and buffer stocke food
grains are provided through the PDS is called as issue price.
Thus the minimum support price is aimed to:
(i) Assure remunerative and relatively stable price environment for the farmers by
inducing them to increase production and thereby augment the availability of
food grains.
(ii) Improve economic access of food to people.
(iii) Evolve a production pattern which is in line with overall needs of the economy.
 Pradhan Mantri Grama Sadak Yojana:-
Pradhān Mantrī Grām Saḍak Yōjanā is a nationwide plan in India to provide good all-
weather road connectivity to unconnected villages.
It helps in smooth Transportation of Agricultural inputs and outputs.
 Pashudhan Sanjivini:-
Animal Wellness Scheme ‘Pashudhan Sanjivani’- Health Cards, Tagging, Health
Services at door step.
Problem:
(i) At present 85 million animals are in milk while records on breeding, productivity,
treatment and vaccination are not properly maintained by State Animal Husbandry

14. Departments as system for maintaining records on the above aspects is not yet
evolved in the country.
(ii) Due to absence of records on animal identification and traceability it is not
possible to separate healthy animals/animal products obtained from healthy
animals and diseased animals/products obtained from diseased animals. This is
Major cause of concern with regard to spread of diseases among animal
population and spread of zoonotic diseases among human beings.
(iii) Most of the veterinary hospitals and dispensaries are stationary and veterinary
services are not available at farmers’ doorstep.
(iv) Emergency facility in the form of dedicated helpline is not available to livestock
owners.
(v) Country is facing difficulty in expanding trade of livestock and livestock products
as we have not established animal identification and traceability to meet sanitary
and phytosanitary (SPS) requirements.
Solution:
Launching of Animal Wellness Programme ‘ Pashu Sanjivani- with the components of a)
Nakul Swasthya Patra (Health cards), b) Emergency Help Line and c) MAITRIs at Farmers
doorstep.
Major Activities:
Following major activities are proposed to be covered under the Pashu Sanjeevni scheme: i)
Animal identification and traceability using polyurethane tags with unique identification
number (UID); ii) Upgrading Information Network on Animal Productivity and Health
(INAPH) to National Data Base; iii) uploading data on national database on regular basis; iv)
creation of dedicated helpline and establishment of MAITRIs for delivery of services at
farmers’ doorstep.
Fund required for implementation of project:
Amount of Rs 147 crore will be required to cover 85 million animals in milk under animal
identification and traceability and issue of “Nakul Swasthya Patra” during Phase-I of three
years.
Implementing Agencies:
The scheme will be implemented by State Animal Husbandry Departments and Milk
Federations.

15. Major Outcomes:
Major outcomes of the scheme will be: i) Control on spread of animal diseases; ii) Scientific
management of animals iii) enhanced production and productivity; iv) improvement in
quality of livestock & livestock products and v) increase in trade of livestock and livestock
products by meeting out SPS issues.
 Advanced Breeding Technology:
Sex Semen Sorting Techniques to increase disease free female population.
Problems:
(i) At present out of 300 million bovines only 85 million are in milk leaving large
unproductive animals including 84 million males.
(ii) Due to increase mechanization in agriculture utility of males as draught animals
has been reduced tremendously.
(iii) Large population of males is also increasing stress on resources available with
poor livestock rearers as more than 71% of the cattle & buffaloes are with small &
marginal farmers and landless labours.
Solution:
Promotion of sex sorted semen to increase female population and thereby making milk
production more remunerative to the farmers engaged in dairying.
Present Sex Sorted Semen Production Technique:
The sorting of sperm is based on the principle of difference in DNA content of X and Y
chromosome. X chromosome is having 4% more DNA than the Y chromosome. Thus
through the machine X chromosome bearing sperm cell is separated from the Y chromosome
bearing sperm cell. Nozzle of the FACS machine plays an important role in sperm sorting.
Machine has the capacity to produce 14 sex sorted semen doses per hour. In a year about 2
lakh semen doses are produced from one machine. This technique for producing sex sorted
semen is developed in United States and is patented by Sexing Technologies.Technology for
production of sex sorted semen has been developed for exotic breeds mainly Holstein
Friesian & Jersey. Therefore, we have to standardize sex sorted semen technology for our
indigenous breeds like Sahiwal, Hariana, Red Sindhi, Rathi, Gir etc.

16. Major Activities:
Major activities for promoting sex sorted semen in the country are: i): introduction of sex
sorted semen technology at major A graded semen stations(CFSP&TI, Mattupatty,
Haringhata, Patan, Hissar, Nabha, ABC Salon, SAG Bidaj, Nandyal & Bhopal).; ii) Research
& Development activities for standardizing sex sorted semen technology for our indigenous
breeds and developing cost effective sex sorted semen production technology.
Funds Required:
An amount of Rs 500 crores will be required for implementation of the project.
Outcomes:
Major Outcomes of proposed project are: i) Increase in milk production and productivity; ii)
less stress on resources available with farmers; iii) increased availability high genetic merit
females; iv) addition of 6 million improved females annually to national milch herd; v) milk
production increased by 18 million tones after 3 years.
 “E- Pashudhan Haat”:-
An e- market portal for bovine germplasm for connecting breeders and farmers.
Problem:
(i) At present there is no authentic market in the country for quality- disease free
germplasm in the form of: i) semen; ii) embryos; iii) calves; iv) heifers and v) adult
bovines available with different agencies/stake holders.
(ii) Most of the animals are sold in unorganized markets controlled by middlemen. Poor
quality of germplasm with unknown genetic merit and disease status is usually sold in
this market.
(iii)Breed wise information on availability of bovine germplasm is not available which is
essential for promotion of indigenous bovine breeds. Nakul Swasthya Patra and UID
will be made mandatory for sale of bovine germplasm through E Pashu Haat.
Solution:
Electronic platform for trading of germplasm- E-Pashudhan
Major Activities:
Major activities for creating electronic platform for trading of bovine germplasm are i)
creation of “E- Pashudhan Haat”: an e- market portal for bovine germplasm; ii) connecting
breeders state agencies and stake holders with “E- Pashudhan Haat” iii) real time data on

17. availability of germplasm uploaded periodically; and iv) maintaining identification and
traceability of germplasm sold through e market.
Funds required for establishment of E-Pashu Haat:
Amount of Rs two crore will be required for establishment and operating E –Pashu Haat in
the country.
Major Outcomes:
Major outcomes of the scheme are: i) propagation of quality controlled germplasm; ii)
availability of disease free germplasm with known genetic merit iii) price evaluation
available to buyer; iv) one stop portal for bovine breeders v) no involvement of middlemen in
sale and purchase of animals vi) sale only of tagged animal with animal wellness card vii)
propagation of indigenous bovine breeds in the country vii) increase in milk production and
productivity.
Implementing Agency:
All agencies involved in production of bovine germplasm will be participating agency.
 National Genomic Centre for Indigenous Breeds:-
Use of Genomics in Indigenous Cattle:
Regarding use of genomics for increasing milk production and productivity of indigenous
cattle, it is mentioned that advanced dairying nations have introduced genomic selection and
demonstrated that faster genetic gain is possible with genomic selection. The genomic
selection methods developed in advanced dairying nations are appropriate for exotic breeds
like Holstein Friesian and Jersey. The genomic selection procedures developed in advanced
dairying nations will not be useful for our indigenous breeds such as Gir, Sahiwal, Kankrej,
Sahiwal, Red Sindhi, Rathi, Hariana etc. For implementing genomic selection procedures for
our indigenous breeds, we have to develop our own genomic selection procedures including
Single Nucleotide Polymorphism (SNP) chips and prediction equation. For initiating
genomics among indigenous bovine breeds it is proposed to establish national level genomic
centre as “National Bovine Genomic Centre.
The National Bovine Genomic Centre (NBGC) will be established as an autonomous
body for undertaking all activities related to the introduction of genomic selection procedures
for production and supply of high quality bulls of various indigenous breeds in the country.

18. Major Activities:
The major activities of proposed NBGC will be: a) establishment of Genomic laboratory; b)
creation of reference population; c) development of custom made genotyping chip; d)
establishment of bio-informatic centre; e) development of genomic selection equation; f)
establishment of herd of donor and recipient animals and g) production of high genetic merit
young bulls.
Funds required for establishment of National Bovine genomic Centre:
For establishment of national level bovine genomic centre an amount of Rs 200.00 crores will
be required. The centre will work as an autonomous body.
Expected Outcomes:
Major outcomes of application of genomics in indigenous bovine breeds are: i): application
of genomics increases accuracy of selection and enhance genetic gain among bovine
population for production traits; ii) increase in milk production and productivity of
indigenous bovines; iii) With the implementation of genomic selection programme our breeds
will be viable in few generations and iii) genomic information will be useful in parentage
testing, genetic disorders, breed classification; disease screening and identification gut
microflora/methane emission reduction.
 Animal Health Card:-
Aiming to control animal diseases and boost milk output, the Agriculture Ministry has
sought measures like a new scheme on animal health card, e-market platform for
bovine germplasm and increase in allocation for Rashtriya Gokul Mission in Budget
2016.
In its pre-Budget recommendations, the Agriculture Ministry has proposed launching
of a Pashu Sanjeevani scheme with components of health cards, emergency helpline
and health services at door step, according to sources in the Finance Ministry.
The ministry has sought funds worth Rs 140 crore to cover 85 million milk producing
animals under the scheme which would aim to control spread of animal diseases,
enhance productivity and improve quality of livestock, the sources said.

19. The proposed animal welfare scheme will identify and trace animal with unique
identification number, upgrade information network on animal productivity and health
to national data base and create a dedicated helpline and doorstep delivery of health
services.
Deen Dayal Antyodaya Yojana or DAY is a Government of India scheme for the helping
the poor by providing skill training. It replaces Aajeevika. The Government of India has
provisioned ₹500 crore for the scheme. The objective of the scheme is to train 0.5 million
people in urban areas per annum from 2016. In rural areas the objective is to train 1 million
people by 2017. Further, in urban areas, services like SHG promotion, training centres,
vendors markets, and permanent shelters for homeless will be provided for. The aim of the
scheme is skill development of both rural and urban India as per requisite international
standards.
 Pradhan Mantri Krishi Sinchai Yojana :-
This is a national mission to improve farm productivity and ensure better utilization of the
resources in the country.
The primary objectives of PMKSY are to attract investments in irrigation system at field
level, develop and expand cultivable land in the country, enhance ranch water use in order to
minimize wastage of water, enhance crop per drop by implementing water-saving
technologies and precision irrigation. The plan additionally calls for bringing ministries,
offices, organizations, research and financial institutions occupied with creation and recycling
of water under one platform so that an exhaustive and holistic outlook of the whole water
cycle is considered. The goal is to open the doors for optimal water budgeting in all
sectors.Tagline for PMKSY is "more crop per drop.
 Shyama Prasad Mukherji Rurban Mission:-
The Mission aims at development of rural growth clusters which have latent potential for
growth, in all States and UTs, which would trigger overall development in the region. These
clusters would be developed by provisioning of economic activities, developing skills & local
entrepreneurship and providing infrastructure amenities. The Rurban Mission will thus
develop a cluster of Smart Villages.

20. Overview:-
As per the 71st NSSO Survey on Education 2014, only 6% of rural households have a
computer. This highlights that more than 15 crore rural households (@ 94% of 16.85 crore
households) do not have computers and a significant number of these households are likely to
be digitally illiterate. The Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA)
being initiated under Digital India Programme would cover 6 crore households in rural areas
to make them digitally literate.
Earlier, the Government had implemented the National Digital Literacy Mission or the
Digital Saksharta Abhiyan (DISHA) or National Digital Literacy Mission (NDLM) to impart
IT training to 52.5 lakh persons, including Anganwadi and ASHA workers and authorised
ration dealers in all the States/UTs across the country so that the non-IT literate citizens are
trained to become IT literate so as to enable them to actively and effectively participate in the
democratic and developmental process and also enhance their livelihood.
Expected outcome:-
Digital Literacy is the ability of individuals and communities to understand and use digital
technologies for meaningful actions within life situations. Digitally literate persons would be
able to operate computers/digital access devices (like tablets, smart phones, etc.), send and
receive emails, browse internet, access Government Services, search for information,
undertaking cashless transactions, etc. and hence use IT to actively participate in the process
of nation building.
MGDISHA is expected to be one of the largest digital literacy programmes in the world.
Under the scheme, 25 lakh candidates will be trained in the FY 2016-17; 275 lakh in the FY
2017-18; and 300 lakh in the FY 2018-19. To ensure equitable geographical reach, each of
the 250,000 Gram Panchayats would be expected to register an average of 200-300
candidates.

21.  Pradhan Mantri Kaushal Vikas Yojana:-
This is the flagship scheme for skill training of youth to be implemented by the new Ministry
of Skill Development and Entrepreneurship through the National Skill Development
Corporation (NSDC). The scheme will cover 24 lakh persons.
Skill training would be done based on the National Skill Qualification Framework (NSQF)
and industry led standards.
Under the scheme, a monetary reward is given to trainees on assessment and certification by
third party assessment bodies.
The average monetary reward would be around Rs.8000 per trainee.
Eligible Beneficiaries:
In line with the scheme objectives, the scheme is applicable to any candidate of Indian
nationality who:
 undergoes a skill development training in an eligible sector by an eligible training provider.
 is certified during the span of one year from the date of launch of the scheme by approved
assessment agencies.
 is availing of this monetary award for the first and only time during the operation of this
Scheme.
Fertilizer Subsidy and Rationalizing the NPK pricing :-
For maintaining NPK ratio in the soil and better application technologies to improve
efficiency and reduce fertilizer subsidy by Rs. 25,000 – 30,000 crores annually. Policy
on promoting crop specific speciality fertilisers and fertigation, besides setting
standards and regulating bio-fertilisers under Soil Health Mission is needed. Since the
year 2010, NP / NPK fertilisers have been reformed and put under Nutrient Based
Subsidy (NBS) whereas Urea continues under direct control. Consequently, the gap in
MRP of Urea and NP / NPK fertilisers has been widening. Therefore, unless
corrections are made in the fertiliser policies, the benefit of soil health card will not be
realised. And desired increase in yields in major crops will continue to delude the
nation.

22. Regulations
Legal regulations:- Decisions are strongly affected by laws pertaining to competition,
price setting, distribution arrangements, advertising, etc. It is necessary for a manager to
understand the legal environment of the country and the jurisdiction of its courts. The
following laws affecting business in India are important.
1. Indian Contract Act, 1872
2. Factories Act, 1948
3. Minimum Wages Act, 1948
4. Securities contracts Regulation Act, 1956 (Now replaced by SEBI Act)
5. The Companies Act, 1956
6. Trade and merchandise Marks Act, 1958
7. Monopolies and Restrictive Trade Practices Act, 1969
8. The water (Prevention and Control of Pollution) Act, 1974
9. The Air (Prevention and Control of pollution ) Act, 1981
10. Sick Industrial Companies (Special provision) act, 1985
11. Environment protection Act, 1986
12. Consumer protection Act, 1986
13. Securities and Exchange Board of India Act, 1992
Taxation laws covering Corporate tax, indirect taxes like Excise, Customs, Sales tax and
Wealth tax)