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Second largest country in the world. May
become the largest country by 2030.
Total population:1.21 billion (2011)
Population growth rate:1.3% annually
Majority (68%) of people live in rural areas.
Land area: 297.3 million ha (2.4% of world)
17% of population; Only 4.2% of world
water; 1200 mm annual rainfall
Agriculture accounts for 80% of water
needs; 60% from ground water.
India: Economic Conditions
India:GDP
Service sector contributing: 58%;
Agriculture contributing: 13% (with
50% workers); It was 56% in 1950.
USA: Ag workers: <2%, 41% in 1900.
Manufacturing contributing: 15%;
China: 34%; Thailand: 40%.
GDP (PPP): About US$ 4 trillion
Per Capita Income (PPP)=US$ 3800
4th largest economy after USA, China
and Japan.
Agricultural Areas
India is a country with various
landforms:
lofty mountains to ravines, deltas,
high altitude forest of Himalayas,
sprawling grasslands of Indo-
Gangetic plains,
peninsular plateaus of South East and
South West India.
CLIMATE
Climate of India is full of extremities.
Temperature from arctic cold to
equatorial hot.
Rainfall from extreme aridity with less
than 100 mm in Thar Desert (West India)
to world’s maximum rainfall of
11200 mm in Meghalaya, Norteast India.
Indian Agriculture
Both irrigated and rain-fed (dry land)
Country grouped into 20 agro-climatic
regions and 60 agro-ecological sub-regions
on the basis of soil, agro-ecological
conditions and physiographic situations.
Diverse:
Capable of producing most of the food
and horticultural crops in the world.
Indian Agriculture
Cultivated area :142 million ha
Irrigated: 60 m ha; Rain-fed: 82 million ha
Cropping intensity: 1.37 and stagnating.
With increasing industrialization and
urbanization arable land may decline.
About 100 million farm families with 250 m
workers (50% of work force) contributing
only 13% to GDP.
Social conditions
A very poor country.
Per Capita Income: US $1300 ($3800 PPP).
35% population below poverty line (<$1.25/day).
Literacy: 75 %
Inadequate and poor quality schools in rural areas.
640 universities; Gross Enrolment Ratio: 20%.
Share in Global Research: 4%; China: 18%.
Life Expectancy: 65 years
17% population undernourished.
Only 32,000 Bank branches for 640,000 villages.
Technical Capacity: Agricultural Manpower
66 Agricultural Universities: 56 State Agri. Univ.
+ 5 Deemed Univ. + 1 Central Univ.+ 4 Central
Universities with Agriculture Faculty.
Annual admission in Agri. & allied sciences:
UG: 25,000; Masters: 8,000; PhD: 2000.
ICAR institutes: 99; KVKs: 631.
Only 0.6% of Ag. GDP is invested in Agricultural
Research, Education and Extension (AREE).
A large network of training centers is required
to impart skills at gross root level particularly
Item 1960 1970 1980 1990 2000 2010
Agricultural land (million ha) 133 140 140 143 143 142
Irrigation pumps (million) 0.4 3.3 6.2 12.9 19.5 25
Irrigated area (percent) 19 22 28 33 34 35
Cropping intensity 1.15 1.18 1.23 1.30 1.33 1.39
Fertilizer use (kg/ha) 2 15 39 88 125 150
Grain yield (kg/ha) 700 860 1 000 1 300 1 600 1 900
Tractors (thousands) 37 146 531 1 200 2 600 4 000
Area per tractor (ha) 3 600 960 260 120 55 36
Power tillers (thousand) 0 9.5 16 31 100 200
Draft animals (million) 80.4 82.6 73.4 70.9 60.3 50
Aspects of Indian Agriculture (1960-2010)
Indian Agriculture: Present Status
Grain production (2012-13): 259 m tons
Grains in stocks (Jan 2013): 66 m tons
Exports 2011-12: Rice: 9 mt; Wheat: 9.5 mt
During the15 years agricultural products:
Imports: about 3-8% of total imports
Exports: about 11-20% of total exports
Main imports: vegetable oils and pulses.
Main exports: cereals, marine products,
oil meals, cashew and tea.
Out of total Indian food market, the
processed segment is only 10%;
semi-processed is 15%; and rest
75% is constituted by fresh foods.
About 98 percent of the fruits and
vegetables produced in India are
traded as fresh products. Post
harvest losses may be as high as
30%.
Budget 2013-14: Rs 16700 billion ($300 billion)
Allocation: Agriculture: Rs 270 billion
Allocation: Rural Development: Rs 802 billion
Total Subsidies 2013-14: Rs 2480 billion
Petroleum Subsidy (2012-13): Rs 1000 billion
Food Subsidy (PDS: 2012-13): Rs 1000 billion
Major items subsidized by the government:
Irrigation (very low charges for Canal water);
and Electricity for Agri. (lower or no charges).
Fertilizer subsidy >10X investment in agriculture.
Subsidy on Agricultural Machines
Only about 1% sales receive subsidy.
Government provides subsidy and credit at
reduced rate to economically and socially
disadvantaged farmers. Rate of subsidy:
about 25% with limit on amount.
Tractors, power tillers, combine harvesters
and other farm machines must be tested
according to Bureau of Indian Standards
(BIS) Test Codes, by authorized test stations.
Production of tractors
1961 880 tractors
1970 20,000 Net importer upto 1976
1980 71,000 Exports started: Africa
1990 140,000 Exports grew upto 7,000/year
2000 256,000 Exports grew upto 50,000/year
2010 560,000 USA, Malaysia,Turkey, South
2011 630,000 Asian and African countries
2012 579,000
2013 690,000
Of global production of tractors India produces
more than 1/3rd of total tractors and more than
50% of <60 hp category.
India is the biggest producer of tractors in world.
Mechanization technologies were first adopted by
the large farmers [over 10ha farm size] followed by
medium scale farmers [4 to 10 ha farm size]. Water
lifting was the highest priority for mechanization
followed by threshing, transport and tillage.
The large numbers of such farmers in states like
Punjab, Haryana and Western Uttar Pradesh played
a critical role in facilitating the creation of a viable
agricultural machinery and implements distribution
and services sector. Such farmers were also the
ones who were able to provide mechanization and
other services to the more numerous semi medium
[2 to 4 ha farm] and small holder farmers [1 to 2 ha]
farmers.
Projections for Mechanization in India
Item 2010 2020 2030 2050
Agricultural Workers (millions) 250 300 340 350
Draft Animals (millions) 50 30 20 10
Tractors (millions) 4.0 5.0 6.0 7.0
Power Tillers (millions) 0.2 0.4 0.6 1.0
Diesel Engines (millions) 6.8 7.3 7.8 8.5
Electric Motors (millions) 18 28 35 40
Power (kW/ha) 1.8 2.5 3.5 4.5
Annual Investment in Farm Machines
1997: Estimated to be 180 billion Indian Rupees
or over US $ 5 billion (Singh, 1998).
2005: Estimated to be 300 billion Indian Rupees
or over US $ 6.5 billion (IASRI, 2006).
2010: Estimated to be 500 billion Indian Rupees
or over US $ 10 billion.
Investment in hand operated tools & implements
will grow very slowly with slow increase in the
population of agricultural workers.
Investment in animal operated implements is
decreasing gradually due to declining number of
draft animals.
Investment in the power operated farm equipment
is increasing significantly and rapidly.
Policy 1
Business and enterprise friendly policies,
laws, and regulations as well as physical
and institutional infrastructures which
encourage commercial activities and
entrepreneurship in farming, input
supply, produce handling, processing
and marketing as well as in
manufacturing will be key factors to
success of agriculture in the different
states of India.
Policy 2
Reduce subsidies and invest in infrastructure,
mainly, roads, electricity supply, irrigation
systems and markets with storage and
processing facilities in catchment areas.
57% of subsidized food grains under PDS does
not reach intended beneficiaries, costing Rs 3.57 to
deliver Rs 1 grains (Ajay Chhibbar, 27 Feb 2014).
Reduce interest rates on loans and taxes
for purchase of equipment & machinery
for agricultural operations and food
processing.
Policy 3
Provide assured support prices for the
farmers produce.
Strengthen support services for research
and development; testing and standards
as well as for human resources
development in support of agricultural
development.
Policy 4
The fuel prices have been increasing.
Development of bio-fuels, especially
from agricultural residues, needs urgent
attention.
Use of production techniques with low
energy requirement (e.g. minimum
tillage, Zero till planting, drip irrigation,
fertigation, etc.) need to be promoted.
Challenge
The main challenge will remain to increase
the food production to feed the growing
population.
With sufficient food stocks the big challenge
is to curve wastage, provide adequate access
and ensure judicious distribution of food.
Urgent need is to improve the income of 100
million farm families (250 million workers)
cultivating 142 million ha land; 50% work
force contributing only 13% to GDP.
Future Prospects (Worldwide)
Based on a FAO report (2011) investment requirements
for primary agriculture and its down-stream industries in
93 developing countries show that the total over 44 year
period (2006 to 2050) could amount to almost
US$ 9.2 trillion (in 2009 $ terms), 46% of which will be
for primary agriculture.
Almost a third (31%) of all capital needs will stem from
projected mechanization needs and almost a quarter
(23%) from further expansion and improvement of
irrigation.
Broken down by type of investment 60% (US$ 5.5 trillion)
will be for replacing existing capital stocks and 40%
(US$ 3.6 trillion) for growth investments.
Cummulative Investment from 2005-07 to 2050
(Billion US$; 2009)
________________________________________________________________
Total for 93 Developing Countries 9174
Total in Primary Production 4236
Crop Production 3505
Land development, soil conservation and flood control 161
Expansion and improvement of irrigation 960
Mechanization (tractor & equipment) 1312
Other power sources and equipment 482
Livestock Production 731
Downstream Support Services 4938
Cold and dry storage 797
Rural and wholesale market facilities 959
First stage processing 3182
Region % Share
Sub-Saharan Africa 10
Near East and North Africa 13
Latin America and Caribbean 20
Asia 57
South Asia 25
East Asia 32
China and India 40
Indian Agriculture and Mechanization

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Indian Agriculture and Mechanization

  • 1.
  • 2. Second largest country in the world. May become the largest country by 2030. Total population:1.21 billion (2011) Population growth rate:1.3% annually Majority (68%) of people live in rural areas. Land area: 297.3 million ha (2.4% of world) 17% of population; Only 4.2% of world water; 1200 mm annual rainfall Agriculture accounts for 80% of water needs; 60% from ground water. India: Economic Conditions
  • 3. India:GDP Service sector contributing: 58%; Agriculture contributing: 13% (with 50% workers); It was 56% in 1950. USA: Ag workers: <2%, 41% in 1900. Manufacturing contributing: 15%; China: 34%; Thailand: 40%. GDP (PPP): About US$ 4 trillion Per Capita Income (PPP)=US$ 3800 4th largest economy after USA, China and Japan.
  • 4. Agricultural Areas India is a country with various landforms: lofty mountains to ravines, deltas, high altitude forest of Himalayas, sprawling grasslands of Indo- Gangetic plains, peninsular plateaus of South East and South West India.
  • 5. CLIMATE Climate of India is full of extremities. Temperature from arctic cold to equatorial hot. Rainfall from extreme aridity with less than 100 mm in Thar Desert (West India) to world’s maximum rainfall of 11200 mm in Meghalaya, Norteast India.
  • 6. Indian Agriculture Both irrigated and rain-fed (dry land) Country grouped into 20 agro-climatic regions and 60 agro-ecological sub-regions on the basis of soil, agro-ecological conditions and physiographic situations. Diverse: Capable of producing most of the food and horticultural crops in the world.
  • 7. Indian Agriculture Cultivated area :142 million ha Irrigated: 60 m ha; Rain-fed: 82 million ha Cropping intensity: 1.37 and stagnating. With increasing industrialization and urbanization arable land may decline. About 100 million farm families with 250 m workers (50% of work force) contributing only 13% to GDP.
  • 8. Social conditions A very poor country. Per Capita Income: US $1300 ($3800 PPP). 35% population below poverty line (<$1.25/day). Literacy: 75 % Inadequate and poor quality schools in rural areas. 640 universities; Gross Enrolment Ratio: 20%. Share in Global Research: 4%; China: 18%. Life Expectancy: 65 years 17% population undernourished. Only 32,000 Bank branches for 640,000 villages.
  • 9. Technical Capacity: Agricultural Manpower 66 Agricultural Universities: 56 State Agri. Univ. + 5 Deemed Univ. + 1 Central Univ.+ 4 Central Universities with Agriculture Faculty. Annual admission in Agri. & allied sciences: UG: 25,000; Masters: 8,000; PhD: 2000. ICAR institutes: 99; KVKs: 631. Only 0.6% of Ag. GDP is invested in Agricultural Research, Education and Extension (AREE). A large network of training centers is required to impart skills at gross root level particularly
  • 10. Item 1960 1970 1980 1990 2000 2010 Agricultural land (million ha) 133 140 140 143 143 142 Irrigation pumps (million) 0.4 3.3 6.2 12.9 19.5 25 Irrigated area (percent) 19 22 28 33 34 35 Cropping intensity 1.15 1.18 1.23 1.30 1.33 1.39 Fertilizer use (kg/ha) 2 15 39 88 125 150 Grain yield (kg/ha) 700 860 1 000 1 300 1 600 1 900 Tractors (thousands) 37 146 531 1 200 2 600 4 000 Area per tractor (ha) 3 600 960 260 120 55 36 Power tillers (thousand) 0 9.5 16 31 100 200 Draft animals (million) 80.4 82.6 73.4 70.9 60.3 50 Aspects of Indian Agriculture (1960-2010)
  • 11.
  • 12. Indian Agriculture: Present Status Grain production (2012-13): 259 m tons Grains in stocks (Jan 2013): 66 m tons Exports 2011-12: Rice: 9 mt; Wheat: 9.5 mt During the15 years agricultural products: Imports: about 3-8% of total imports Exports: about 11-20% of total exports Main imports: vegetable oils and pulses. Main exports: cereals, marine products, oil meals, cashew and tea.
  • 13. Out of total Indian food market, the processed segment is only 10%; semi-processed is 15%; and rest 75% is constituted by fresh foods. About 98 percent of the fruits and vegetables produced in India are traded as fresh products. Post harvest losses may be as high as 30%.
  • 14. Budget 2013-14: Rs 16700 billion ($300 billion) Allocation: Agriculture: Rs 270 billion Allocation: Rural Development: Rs 802 billion Total Subsidies 2013-14: Rs 2480 billion Petroleum Subsidy (2012-13): Rs 1000 billion Food Subsidy (PDS: 2012-13): Rs 1000 billion Major items subsidized by the government: Irrigation (very low charges for Canal water); and Electricity for Agri. (lower or no charges). Fertilizer subsidy >10X investment in agriculture.
  • 15. Subsidy on Agricultural Machines Only about 1% sales receive subsidy. Government provides subsidy and credit at reduced rate to economically and socially disadvantaged farmers. Rate of subsidy: about 25% with limit on amount. Tractors, power tillers, combine harvesters and other farm machines must be tested according to Bureau of Indian Standards (BIS) Test Codes, by authorized test stations.
  • 16. Production of tractors 1961 880 tractors 1970 20,000 Net importer upto 1976 1980 71,000 Exports started: Africa 1990 140,000 Exports grew upto 7,000/year 2000 256,000 Exports grew upto 50,000/year 2010 560,000 USA, Malaysia,Turkey, South 2011 630,000 Asian and African countries 2012 579,000 2013 690,000 Of global production of tractors India produces more than 1/3rd of total tractors and more than 50% of <60 hp category. India is the biggest producer of tractors in world.
  • 17. Mechanization technologies were first adopted by the large farmers [over 10ha farm size] followed by medium scale farmers [4 to 10 ha farm size]. Water lifting was the highest priority for mechanization followed by threshing, transport and tillage. The large numbers of such farmers in states like Punjab, Haryana and Western Uttar Pradesh played a critical role in facilitating the creation of a viable agricultural machinery and implements distribution and services sector. Such farmers were also the ones who were able to provide mechanization and other services to the more numerous semi medium [2 to 4 ha farm] and small holder farmers [1 to 2 ha] farmers.
  • 18.
  • 19. Projections for Mechanization in India Item 2010 2020 2030 2050 Agricultural Workers (millions) 250 300 340 350 Draft Animals (millions) 50 30 20 10 Tractors (millions) 4.0 5.0 6.0 7.0 Power Tillers (millions) 0.2 0.4 0.6 1.0 Diesel Engines (millions) 6.8 7.3 7.8 8.5 Electric Motors (millions) 18 28 35 40 Power (kW/ha) 1.8 2.5 3.5 4.5
  • 20. Annual Investment in Farm Machines 1997: Estimated to be 180 billion Indian Rupees or over US $ 5 billion (Singh, 1998). 2005: Estimated to be 300 billion Indian Rupees or over US $ 6.5 billion (IASRI, 2006). 2010: Estimated to be 500 billion Indian Rupees or over US $ 10 billion. Investment in hand operated tools & implements will grow very slowly with slow increase in the population of agricultural workers. Investment in animal operated implements is decreasing gradually due to declining number of draft animals. Investment in the power operated farm equipment is increasing significantly and rapidly.
  • 21. Policy 1 Business and enterprise friendly policies, laws, and regulations as well as physical and institutional infrastructures which encourage commercial activities and entrepreneurship in farming, input supply, produce handling, processing and marketing as well as in manufacturing will be key factors to success of agriculture in the different states of India.
  • 22. Policy 2 Reduce subsidies and invest in infrastructure, mainly, roads, electricity supply, irrigation systems and markets with storage and processing facilities in catchment areas. 57% of subsidized food grains under PDS does not reach intended beneficiaries, costing Rs 3.57 to deliver Rs 1 grains (Ajay Chhibbar, 27 Feb 2014). Reduce interest rates on loans and taxes for purchase of equipment & machinery for agricultural operations and food processing.
  • 23. Policy 3 Provide assured support prices for the farmers produce. Strengthen support services for research and development; testing and standards as well as for human resources development in support of agricultural development.
  • 24. Policy 4 The fuel prices have been increasing. Development of bio-fuels, especially from agricultural residues, needs urgent attention. Use of production techniques with low energy requirement (e.g. minimum tillage, Zero till planting, drip irrigation, fertigation, etc.) need to be promoted.
  • 25. Challenge The main challenge will remain to increase the food production to feed the growing population. With sufficient food stocks the big challenge is to curve wastage, provide adequate access and ensure judicious distribution of food. Urgent need is to improve the income of 100 million farm families (250 million workers) cultivating 142 million ha land; 50% work force contributing only 13% to GDP.
  • 26. Future Prospects (Worldwide) Based on a FAO report (2011) investment requirements for primary agriculture and its down-stream industries in 93 developing countries show that the total over 44 year period (2006 to 2050) could amount to almost US$ 9.2 trillion (in 2009 $ terms), 46% of which will be for primary agriculture. Almost a third (31%) of all capital needs will stem from projected mechanization needs and almost a quarter (23%) from further expansion and improvement of irrigation. Broken down by type of investment 60% (US$ 5.5 trillion) will be for replacing existing capital stocks and 40% (US$ 3.6 trillion) for growth investments.
  • 27. Cummulative Investment from 2005-07 to 2050 (Billion US$; 2009) ________________________________________________________________ Total for 93 Developing Countries 9174 Total in Primary Production 4236 Crop Production 3505 Land development, soil conservation and flood control 161 Expansion and improvement of irrigation 960 Mechanization (tractor & equipment) 1312 Other power sources and equipment 482 Livestock Production 731 Downstream Support Services 4938 Cold and dry storage 797 Rural and wholesale market facilities 959 First stage processing 3182
  • 28. Region % Share Sub-Saharan Africa 10 Near East and North Africa 13 Latin America and Caribbean 20 Asia 57 South Asia 25 East Asia 32 China and India 40