The First Plan (1951-1956) allocated 31% of its budget to agriculture to develop the sector after suffering losses during WWII and Partition. It aimed to increase farm output by 14% and brought 14 million acres under irrigation. This helped end inflation and stabilize the economy. The Second Plan (1956-1961) allocated less (20%) to agriculture which saw slower methods and a 35% rise in prices. The Third Plan (1961-1966) prioritized agriculture but failed to meet targets due to droughts and wars. The Green Revolution began during the Three Annual Plans (1966-1969) through high-yielding varieties, fertilizers, irrigation and mechanization, increasing food grain production. The Fourth Plan (1969-1974) continued

1. Agriculture Under plans in India

2. First Plan
• Agriculture suffered due to World War II
• Woes of Partition
• Wheat rich Punjab
• Rice and Jute rich Bengal
• Cotton too suffered
• Relatively large irrigated area lost to Pakistan
• Ill and Exploitative Trade Policy
• Frequent Famine

3. First Plan attempted at….
• Development of agriculture and irrigation
• Out of a total actual investment of Rs. 1960 crores made in the first plan. Rs. 601 crores i.e. 31% was
allocated for agriculture.
• Rs, 291 crores (15%, of the total) was allocated to agriculture & C.D.P.
• The balance of Rs. 310 crores (or 16% of total) was the share of irrigation
• It was expected that the index of farm output would increase from about 100 in 1949-50 to 114 in
1955-56.
• Various measures like institutional reforms
• Organisational changes, structural changes and technical progress
• 14 mn. acres were brought under irrigation
• Japanese method of rice-cultivation was largely extended

4. Goals and Achievements

5. Effects
• India became food sufficient
• The price index for agricultural commodities (1952-53 = 100) came down to 92.8
• The increase in farm output during the First Plan helped to end inflation, stabilized the economy
and paved the way for a higher rate of development during the second plan

6. Second Plan
• The increase in farm output during the First Plan helped to end inflation, stabilized the economy
and paved the way for a higher rate of development during the second plan
• devoted a relatively less outlay for agriculture 20% of the public outlay (or Rs. 4800 crores) as
compared to 33% in the First Plan.
• In money terms, however, the outlay in the Second Plan was higher. It was Rs. 1050 crores as
compared to only

7. Goals and Achievements

8. Analysis
• The consumption of fertilizer increased very slowly
• methods of increased agricultural production did not make as much headway
• the actual output by the end of Second Plan was much more than the actual output of the beginning
of the Sec
• The Planning Commission has been blamed for all this on the ground that it did not give enough
emphasis to agricultural development in Second Plan
• The poor development of agriculture during Second Plan led to a good number of difficulties in the
Indian economy
• The most important effect was the rise in the price level. During this Plan, the wholesale price index
of all commodities increased by 35%.
• As a result of rise in farm prices, other commodities also recorded rise in prices. An inflationary
situation rapidly appeared.
• The imports of food grains which were cut during First Plan had to be resumed and precious foreign
exchange meant for machinery and other industrial raw materials had to be wasted in importing
food grains.

9. Third Plan
• Third 5 year Plan gave a Predominant emphasis to agriculture.
• One of the major objectives of the Plan was to achieve self-sufficiency in food grains and to increase
agricultural production for exports.
• ‘In the scheme of development during the Third Plan the first priority necessarily belongs to
agriculture.’
• Agriculture was apparently the driving force behind economic growth
• Both in formulating and implementing programmes for the development of agriculture, the guiding
consideration is that whatever is physically practicable should be made financially possible and the
potential of each should be developed to the possible extent.
• the Plan allocated almost 10% of the total public sector outlay of the Plan i.e., Rs. 1310 crores out of
Rs. 6300 crores.
• Actual expenditure worked out to be Rs. 1754 crores.

10. Goals and Achievements

11. Analysis
• Third Plan failed on the agricultural front.
• In contrast to the targeted increase of 30% or 6% per year in food grains a bare 10% or 2% per year
was realized
• Index of food grains prices had shot up from 118.4 in 1961-62 to 168.8 in 1965-66.
• As a consequence of the shortfall in food production huge amount of food-grains had to be imported
between 1961-62 and 1965-66.
• This strained our foreign exchange position still further.
• Severe draughts, Indo-China war, Indo-Pak war were the main culprits behind the failure

12. Three Annual Plans: Green Revolution Begins
• The serious failure of Third plan and huge economic crisis resulted in postponement of Fourth Plan
• Instead three annual plans were implemented between 1966 to 1969, called Plan Holiday
• During these annual plans actual expenditure on agriculture worked out to be Rs. 1624 crores which was
24% of the total plan investment of 6757 crore rupees.
• The ‘Plan Holiday’ viz. 1966-67 to 1968-69 witnessed the adoption of the new agricultural strategy, which
has come to be commonly known.as the green revolution
• Composed of a package, chiefly of four improvements, none of which is wholly effective without the
others: improved varieties increased use of fertilizers, improved water supplies and better agricultural
practices.
• A new strategy called IADP (Integrated Agricultural District Programme) and HYVP (High Yielding
Variety Seeds Programme)
• Also associated increasing mechanisation of agricultural operations and measures of plant protection
from pests and diseases
• On account of the drought conditions during 1966-67 minor irrigation received a high priority and the
programmes were undertaken on an emergency basis.
• Programmes of high-yielding varieties along with the requisite application of chemical fertilizers were
undertaken

13. Green Revolution…..
• A good year of rainfall coupled with efforts to improve production with a new technological resulted
in a record food grains production of 95.6 mn. tonnes in 1967-68.
• Although the targets for 1968-69 was 102 mn. tonnes, it was not possible to reach the target in view
of the crop failure in some regions in India
• However the production of food grains. was maintained at the level of 95.6 mn. tonnes in 1968-69
• The consumption of chemical fertilizers also touched the level of 1750 thousand tonnes in 1967-68.

14. Fourth Plan: Green Revolution Continued
• Lesson from a failed third plan forced planners to assign due importance to agriculture
• Even in the case of industries, the Planning Commission emphasised those industries which supply
fertilizers, agricultural machinery etc.
• Emphasised the need of creating favourable economic conditions for the formation of agriculture
• Emphasised systematic effort to extend the application of science and technology to agriculture
• In general intensify agricultural programmes to the maximum possible extent in selected areas.

15. Main Objectives and strategies
• To provide the conditions necessary for a sustained increase of about 5 per cent per annum over the
next decade
• To enable as large a sector of the rural population as possible, including the small farmer, the
farmer in dry areas and agricultural labourers to participate in development and share its benefits
• The strategy of agricultural development was based largely on the further extension of the high
yielding varieties (HYV) and multiple cropping programmes.
• Envisaged an expenditure of Rs. 3814 crores on Agriculture which was 24% of the total expenditure
of Rs 15902 crores. But the actual outlay was less
• Postulated an annual growth rate of 5% for agriculture as a whole. The compound growth rate
target for food’ grains worked out to be 5.6% p.a. Frankly speaking none of the targets fixed in the
Fourth Plan was realised.

16. Analysis
• Target for food grains was 129 mn. tones for 1973-74, but the actual production in that year was
only 103 mn. tonnes
• The target for wheat was attained easily, in fact, it exceeded in 1971-72 when wheat output was 26
mn. tonnes as against the target of 24 mn. tonnes for the final year of the Plan.
• As against the target of 15 mn. tonnes in 1973-74, the actual production of pulses in that year was
only 8 mn. tonnes.
• In rice against the target of 52 mn. tonnes, the actual production was 43.7 mn. Tonnes
• In important commercial crops like cotton and jute actual production was much below the target
level
• As against the target of 80 lakh bales the actual production of cotton in 1973-74 was only 38 lakh
bales
• In jute as against a target of 74 lakh bales, actual production was only the order of 62 lakh bales in
1973-74.
• With respect to oilseeds and sugarcane too the progress was below expectation

17. Analysis of New Strategy
• Area sown under wheat grew by 10 8% and
• As a result of green revolution, productivity per acre also showed a considerable improvement
under high- yielding varieties with a higher consumption of fertilizers.
• It was hoped that consumption of fertilizers would reach a target of 55 lakh tonnes in 1973-74 from
an assumed base level of 16.5 lakh tonnes in 1968-69. Actual production of fertilizers was estimated
at only 30 lakh tonne in 1973-74.
• Failure to increase fertilizer production in view of raw materials like naphtha and non-availability of
fertilizers in international market were responsible for the shortfall in this area.
• The targets of irrigation could not be fulfilled
• The overall rate of growth of agricultural production during Fourth Plan was only 2.8% p.a
• Decline in the per capita availability of essential wage good
• The unsatisfactory performance of the agricultural sector was the root cause of the stagnation of
national income and inflationary pressures since 1972-73.

18. Weaknesses of the New Strategy
• Market dependence for supply of inputs, for demands of output
• Demand for agricultural credits increased
• Small farmers left out in the race
• Created huge inequality in income distribution
• Indian agriculture still a gamble with monsoon, output increased only
in good monsoon year
• In 1974-75 sharp increase in output a good monsoon year
• Sharp decline in output in 1978-79, a bad monsoon

19. • Growth of capitalistic farming
• Heavy investment in seeds, irrigation and fertilizers beyond the capacity of small
farmers
• There are 81 million farm households, only 6% are big farmers
• In Punjab Recent emergence of gentlemen farmers comprising ex servicemen,
retired civil servants and urban-based businessmen, took up agriculture as industry –
Ashok Rudra and others
• They constitute 3% of total number of farmers, cover 8.5% of total number of farms,
occupy 27% of total farm area
• In this group of farmers, called progressive farmers and gentlemen farmers can make
huge investments in form of tractors, tubewells and pumping sets and other
equipment
• Vast majority of rural households with little or no land, with poor finance and poor
creditworthiness have been completely marginalised

20. Weaknesses……
• Side-tracks institutional reforms
• Does not recognise the need for land reforms
• Bulk of peasant population does not enjoy ownership rights
• According to Minhas and Srinivasan a crops-haring owner-farmer earns 180%
profit on wheat production and 183% on rice production on irrigated land
• The tenant farmers got only 65% and 67% respectively
• Widening disparities in income distribution

21. Weaknesses……
• Socio-economic effects:
• Huge majority of cultivators with holding size 2-3 acres though increased
productivity, could not create surplus capital owing to increased cost
• Small owners and marginal farmers, pure tenants, faced absolute
deterioration of condition for possession of land by owners and rising rent
• Small minority with large land holding with availability of minor irrigation, a
condition for utilization of modern input, could generate and mobilize surplus
capital and increase their land holding
• Farmers with 20 acres or more reaped maximum profit due to increased
capital intensity and commercial farming.
• Problems of labour displacement

22. Achievements of New Strategy
• Boost to production of cereals, like wheat, rice,
• Did not cover pulses
• Did not cover coarse grains like maze, barley, millet, ragi etc.
• Was confined to HYV alone
• Increase in production of commercial crops
• Initially commercial and cash crops like cotton, jute, oilseeds, and potatoes
not affected
• Significant increase in output of sugarcane in 1973-74
• Considerable improvement in other cash crop production like oilseeds,
potatoes

23. Achievements….
• Significant change crop pattern
• Production of cereals increased by 3 to 4 percent per annum
• Pulses remained stagnant and even declined
• Proportion of rice has come down from 48% to 44% between 1950-51
to 2014-15
• Proportion of wheat increased from 15% to 38% during the same
period

24. Achievements….
• Boost to agricultural production and employment
• Forward and backward linkages strengthened
• Agriculture achieved linkage with industry
• Forward linkage in terms of supply of important inputs to industry was further
strengthened
• Backward linkage became apparent in terms of demand of inputs, weak
earlier, became very strong