Agriculture in Madhya Pradesh Challenges, strategy and goals Presentation at Ministry of Agriculture 19 May

??? Can this productivity gap ever be bridged? ItemW. Europe India Avg. area tilled by one farmer 10 ha.100 ha.1 ha. Avg. output of grain per annum per worker qtl./ha qtl/ha 10qtl. Average value of grain produced/worker $ $ 10/qtl. $ $ 20/Qtl $ 100$ 200 Productivity ratio Source: Marcel Mazoyer and Laurence Roudart: A History of World. Agriculture from the Neolithic Age to the Current Crisis. London: Earthscan, 2007

Structure of presentation 1.SWOT of MP agriculture 2.Overview of recent achievements 3.Strategic goals – Strategic Action Plan and budgetary requirements 5.Policy suggestions for GOI

A brief SWOT analysis Strengths 1.11 agro-climatic zones; 1100 mm rainfall 2.Excellent land-man ratio; good soil types 3.1/3 area under forests; rich bio diversity 4.Good support infrastructure: 4500 PACS, 240 mandis, 2 SAU, 11 Ag Colleges 5.Strong extension network

SWOT (contd) Weakness 1.¾ holdings small and marginal (26% area) 2.2/3 area rainfed; monsoon vagaries 3.22% rural population tribal; low literacy 4.High risk factor: lack of diversification 5.Low use of HYV seed, fertilizer, mechaniz. 6.Rural credit system weak 7.Infrastructure (esp. power) and transport bottlenecks

SWOT (contd) Opportunities 1.Strong political will to support agriculture 2.Increased budgetary support under CSS 3.Improving power and irrigation scenario

SWOT (concluded) Threats 1.Uneven fund disbursal 2.Inefficient HR management 3.Untargeted interventions 4.Change of focus at State level

Overview of recent performance to

ParticularsUnitStatus Geographical areaLakh Ha Net cultivated areaLakh Ha Area under KharifLakh Ha Area under RabiLakh Ha Double Cropped AreaLakh Ha Irrigated Area%32.37 Cropping Intensity at present%136 Agriculture Profile of the State 9

MP in national perspective ( ) S.N.ParticularsAll IndiaM.P.Position 1.Irrigation % Cropping intensity % Fertilizer consumption/ in kg/ha Productivity of crops kg/ha. a.Paddy b.Jowar c.Bajra d.Maize e.Wheat f.Gram782981Ist (46.62%) in Prod. g.Soybean Ist (54.51%)%in prod. Total pulses595780Ist (26.12%)%in Prod. Total Oilseeds nd (19.71%) in prod.

11 AREA, PRODUCTION, YIELD & CAGR OF MAJOR KHARIF CROPS IN MP (AREA(A):000'Ha., PROD(P).:000'TONNES, YIELD(Y):Kg./Ha.) CROPS CAGR % APYAPYAPYAPY PADDY JOWAR MAIZE BAJRA KODOKUTKI TUR URAD MOONG GROUNDNUT SOYBEAN SESAMUM NIGER TOTAL

12 AREA, PRODUCTION, YIELD & CAGR OF MAJOR RABI CROPS IN MP (AREA(A):000'Ha., PROD(P).:000'TONNES, YIELD(Y):Kg./Ha.) CROPS CAGR % APYAPYAPYAPY WHEAT GRAM PEAS LENTIL RAPE/ MUSTARD LINSEED TOTAL NOTE: 39 District, 164 Tehsil in & 41 District, 152Tehsil in where drought affected in sgtate, adversely affected area & productivity of crop.

13 PERFORMANCE OF SEED PRODUCTION AND SRR (Unit-Seed Prodn-lakh Qtls, SRR-%) Crops CAGR % Seed Prodn SRRSeed Prodn SRRSeed Prodn SRRSeed Prodn SRR Kharif crops Soybean Paddy Rabi crops Wheat Gram

Seed Treatment (Unit : % of total seed used) YearKharifRabi

Fertilizer Consumption in the State Nutrients N P K Total ( Unit – lakh MT ) 15

Per ha. consumption of fertilizers NutrientsAchievement N P K Total ( Unit – KG/Ha) 16

Performance of mechanization YearManually Operated / Bullock Drawn implements Power Drawn implements Tractor & Power Tiller Total

NRM – Watershed Development ParticularsUnit PFPFPF NWDPRAHa RVP / FPRHa MIT Nos PERCOLATION TANKs Nos Unit-Fin-lakh

Some policy initiatives at a glance 1.Lowering risks and cost of agriculture Coop credit interest brought down from 16% to 7% ( ), 5% ( ) and 3% (proposed for ); state subsidy 100cr 2/3 farmers covered under Kisan Credit Card Rs. 100/qtl wheat bonus in and Rs. 50/qtl wheat bonus paid in State level debt waiver scheme for loans upto Rs. 50k announced (to be implemented) 300+ farmer seed societies; doubling of F1 seed availability between

Policy initiatives (contd) 2.Strengthening extension 1st State to introduce PPP model (ATMA) 1 st State Level call centre 1 st Hindi website for agriculture; KGK; CSC Community radio station Over 1500 farm schools mobilized Each of 52,000 villages site for demo plot Dist./block level Krishi Vigyan Mela Monthly newsletter; radio and TV content

Policy initiatives (contd) 3. Moisture conservation efforts SRI and ridge-and-furrow thrust techniques Balram Tal scheme for on-farm ponds Tubewell scheme for cultivators Top-up subsidy for drip and sprinkler systems

Policy initiatives (contd) 4. Rural finance institutions 1 st among north Indian states to sign Vaidyanathan Mou in 2006; over Rs crores received as assistance Comprehensive amendments to Coop Act passed Wide ranging reform of PACS underway; focus on SMF memership; savings, portfolio financing

Policy initiatives (contd) 5.Marketing Modernization programme covering 240 market yards (computeriz., electronic scales, farmer facilities) Single license system for bulk buyers to facilitate direct farmer-processor linkage National Spot Exchange begins functioning at Indore (April 2009) 3 storage and marketing hubs for cereals and perishables planned in WHR, storage and collateral services being expanded

Strategic goals to

Strategic goals Achieve 5% p.a. growth in agriculture 2.Attain national productivity goals in major crops 3.Promote groundwater recharge and in-situ moisture conservation efforts 4.Promote a sustainable, diversified agriculture model, based on optimum resource use 5.Promote intensive mechanization to improve productivity and reduce production losses and drudgery 6.Create effective and transparent marketing mechanisms to enable unlocking of farm produce value 7.Support research and HRD focused on State’s needs

Strategic Action Plan 1.Achieving 5% per annum growth Double SRR of all major crops in 3 years Increase seed production throughout breeder- foundation-certified chain Promote diversification through additional areas under horticulture and agro forestry Promote targeted mechanization to improve yields Strengthen animal husbandry interventions across value chain Liberalise marketing arrangements further; PPP in infrastructure; WHR; strategic marketing hubs, etc. Target SMF with institutional credit and financial services, including risk mitigation strategies

SAP (contd) 2. Attain national productivity goals in major crops Soybean  Research will be focused on early maturing disease free varieties.  Ridge-and-furrow and similar useful practices  Weed control to be focus of farm level efforts  Farm schools to anchor demo and technology transfer efforts Paddy  Increase seed availability, esp. hybrids and early maturing varieties  Upland paddy to be phased out with oilseeds and pulses  SRI method to cover entire paddy acreage in 3-5 years

Wheat  Varietal replacement  Addressing micro nutrient deficiencies  Timely sowing and irrigation management  Niche production and value chain enhancement for ‘sharbati’ and durum varieties Gram  Increasing SRR  Targeting productivity increase for SMF  Irrigation and pest management Efforts underpinned by revitalised extension system, which is being made totally farmer anchored.

Kharif Crop Development Crops Year wise projected Area & Productivity ( Yield) AreaYieldAreaYieldAreaYield Soybean Paddy Maize Pulses Total Area: lakh ha., Yield: Kg/Ha

Rabi Crop Development Crops Year wise projected Area & Productivity ( Yield) AreaYieldAreaYieldAreaYield Wheat Gram Total Pulses Mustard Total Area: lakh ha., Yield: Kg/Ha

3. Promote groundwater recharge and in-situ moisture conservation efforts  Expansion of Balram Tal scheme  Expansion of tubewell scheme for SMF  Convergence with NREGA for on-farm ponds, SMF esp.  Greater thrust on NWDPRA  Targeting SMF for use of water saving devices  Implementation of master plan for serial check dams on major streams in collaboration with RDD

4. Promote a sustainable, diversified agriculture model, based on optimum resource use  Increased focus on conservation agriculture practices  Use of NHM & RKVY funds for allied sector interventions  Involvement of NGOs for promoting integrated farm production models (e.g. ‘Wadi’)  Greater emphasis on organic farming, use of farm waste, mulching etc.

5. Promote intensive mechanization to improve productivity and reduce production losses and drudgery  Equipment Banks for hiring machinery to SMF  Leasing model on pilot basis  Involvement of local private manufacturers in promoting mechanization efforts

6. Create effective and transparent marketing mechanisms to enable unlocking of farm produce value  Purchase centres outside market yards for direct farmer-buyer interface  Provision for Kisan Mandis around major towns  Major projects for perishables and regional storage hubs under implementation  Modernization of mandis – use of IT; PPP model for infrastructure development; WHR & collateral services  National Spot Exchange to be expanded in mandis

7. Support research and HRD focused on State’s needs  SAUs to focus primarily on State specific crops  Greater farmer involvement in varietal research and development  Private sector to be encouraged to enter agri education  Veterinary and horticulture universities under planning  Establishment of gene banks and seed banks at SAUs to preserve unique bio heritage of State and check bio piracy

ATMA ActivitiesProjected Targets Establishment of FFS Demonstration Establishment of CRS Interface100 Kisan Mela/Exhibition50 P P Partners

Agriculture Mechanization (Unit-Nos) Types of MechanizationProjected Targets Manually Operated / Bullock Drawn implements Power Drawn implements Tractor & Power Tiller Total

Seed Infrastructure & Availability ParticularsProjected Targets Seed Availability ( Qtls ) Kharif Soybean Paddy Rabi Wheat Gram SRR (%) Soybean Paddy Wheat Gram

Per Unit Consumption of Fertilizer NutrientsProjected Targets N P K Total ( Unit – KG/Ha) 39

Seed Treatment (Unit : in % of total seed.) YearProjection KharitRabi

NRM – Watershed Development ParticularsUnitProjected Targets NWDPRAHa RVP / FPRHa CONSTRUCTION OF MIT Nos CONSTRUCTION OF PERCOLATION TANKs Nos

Agriculture infrastructure ParticularsProjected Targets Plant protection lab111 Seed testing lab244 Fertilizer testing lab111 Strengthening of Soil testing labs Renovation of Trg Institution (State level)111 Renovation of Trg Centers (Dist level)775 Renovation of Block level Krishi Gyan Kendra Renovation of State Seed Farms

43 Expenditure & Proposed Allocations under CSS (Unit-Lakh Rs.) Name of Scheme ExpenditureProposed allocation Macro Management ISOPOM COTTON MISSION-II NFSM RKVY ATMA DSIFPDQS* Total * DEV.& STRENGTHENING OF INFRASGTRUCTURE FACILITIESFOR PRODUCTION & DISTRIBUTION OF QUALITY SEEDS

Policy suggestions for Govt. of India

Some policy suggestions Merge all existing schemes under two umbrellas: NFSM and RKVY Replicate process of project appraisal and sanction for all programmes on RKVY model – i.e. SLSC, with GOI participation Allow flexibility (upto 20%) for State specific deviations from broad guidelines, with SLSC supervision Create joint supervision and monitoring mechanism for schemes for impact evaluation

THANKS