1. Department of Agriculture & Farmers Welfare Government of India
Presentation to Hon’ble Members of Parliament on Agriculture & Doubling Farmers’ Income
Department of Agriculture & Farmers Welfare
Government of India
Ashok Dalwai

2. Overview of Agriculture
India has achieved record foodgrain production of million tonnes during and 300 million tonnes of fruits & vegetables largely due to favourable monsoon after two consecutive years of deficit rainfall.
48% of the population of India dependent on agriculture.
Crops including fruits and vegetables account for percent of GDP in ‘agriculture, forestry and fishing’ sector. Around 41.0 percent of GVA of this sector based on livestock products, forestry and fisheries.

3. Average GDP @2004-05 prices (Rs Billion)
GDP contribution
 Period / / / / / /
Average prices (Rs Billion)
Agriculture
1636
1955
2547
3473
4358
5771
Agriculture & Allied Activities
2004
2401
3047
4116
5174
6911
Industry
725
1000
1676
2958
4773
9470
Services
1859
2517
4078
7286
13083
28991
Share of (%)
35.7
33.0
28.9
24.2
18.9
12.7
43.7
40.6
34.6
28.7
22.5
15.2
15.8
16.9
19.0
20.6
20.7
20.9
40.5
42.5
46.3
50.7
56.8
63.9
Agro-processing (textiles, food, oil, etc.), retail, credit, warehousing, transport, etc. are also GDP contributors that rely on agriculture for their growth.

4. Production Status of Crops
(as on )
Name of the Crops
Rice
104.41
109.70
111.01
Wheat
92.29
98.51
97.11
Jowar
4.24
4.57
4.66
Bajra
8.07
9.73
9.26
Maize
22.57
25.90
27.14
Ragi
1.82
1.39
1.96
Small Millets
0.39
0.44
0.42
Barley
1.44
1.75
1.99
Coarse Cereals
38.52
43.77
45.42
Cereals
235.22
251.98
253.54
Tur
2.56
4.87
4.02
Gram
7.06
9.38
11.10
Urad
1.95
2.83
3.23
Moong
1.59
2.17
1.74
Other Kharif Pulses
0.72
0.89
0.79
Other Rabi Pulses
2.47
2.99
3.07
Total Pulses
16.35
23.13
23.95
Total Foodgrains
251.57
275.11
277.49

5. Not just foodgrains Major produce type Quantity Milk 165 mill tons
Eggs
83,929 mill pcs
Fish
mill tons
Meats including Poultry
7.02 mill tons
Fibre crops
7.52 mill tons
Cereals
mill tons
Pulses
mill tons
Oilseeds
32.1 mill tons
Sugar cane
mill tons
Horticulture
mill tons
In addition to this output from agro-forestry, tea, coffee, tobacco, wool, leather, bamboo, etc. More than 1.1 billion tons of output from agricultural sectors.

6. Agriculture Growth Rates (current prices)
Growth Rates in GVA (per cent)
YEAR
Total Economy
Agriculture, forestry & fishing
Crops
Livestock
Forestry and logging
Fishing and aquaculture
GDP
GVA
13.8
13.5
11.5
10.9
12.7
10.5
17.5
13.0
12.6
15.0
14.7
14.6
13.9
22.9
11.0
8.7
3.5
20.7
18.7
10.4
9.2
6.3
2.7
14.4
4.9
12.4 *
10.8
10.1
11.6
15.2
9.6
-1.0
1.9
Share of GVA of Agriculture * Allied Sector in Total Economy (per cent)
Year
Agriculture, forestry & fishing
Crops
Livestock
forestry and logging
fishing and aquaculture
18.5
12.1
4.0
1.5
0.8
18.2
11.8
0.9
18.6
4.1
11.2
4.4
1.0
17.7
10.6
4.6 *
17.9
11.1
1.3

7. India: strain on system
Population %
India
Water %
India
Land %
India
17% of Global Population
4% of Global Water Resources
2.4% of Geographical Area
Stress on Supply side
Soil fatigue
Ground water depletion
Plateauing yield
Climate change
Post-harvest losses
Changed Demand
Economic growth
Consumption shifts
15% of GDP supporting 48% of population

8. Redefining Agricultural Mandate
Agriculture has the moral responsibility of meeting food and nutritional security in consonance with the agro ecological backdrop.
It has to generate gainful employment resulting in income gains to make the farmers more economically secure.
It has to generate raw material that will directly support agro-processing of food and non-food products to support secondary agriculture.
It has to support agro-processing industry to produce primary and intermediate goods, which will feed the manufacturing sector.
Agricultural practices need to be on a sustainable basis.

9. Grand Total (Last 3 years)
Budgetary Allocation
(Rs. In crore) BE
Name of Department
Grand Total (Last 3 years)
DAC&FW
DARE
AHDF
Total
22,831.51
42,115.19
51,576.00
116,522.70

10. Flagship Schemes 1. Soil Health Management
Setting up of new soil testing laboratories and strengthening the existing labs.
raining of lab staff/extension officers/farmers/field functionaries on balanced use of fertilizer.
Promotion and distribution of micro nutrients.
Issue of Soil Health Cards
2. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
Developing long term solutions for mitigating the affect of drought.
Increasing area under irrigation.
3. National Food Security Mission (NFSM)
Under implementation in 638 Districts of 29 States.
Promotes & extends improved technologies, i.e., Seed, Micro Nutrient, Soil Amendments, Integrated Pest Management, Farm Machinery & Implements, Irrigation Devices, Capacity Building of Farmers.
Includes cluster demonstrations of rice, wheat, pulses & nutri-cereals, distribution of improved seeds/need based inputs, resource & energy conservation techniques, efficient water application tools, cropping system based training and local initiatives.

11. Flagship Schemes 3. e-NAM 4. Pradhan Mantri Fasal Bima Yojana (PMFBY)
Pan India electronic trading portal in selected regulated wholesale markets in States that have undertaken reforms.
Common tradeable parameters developed for 90 commodities.
506 markets integrated on e-NAM till date. 585 markets to be integrated by
4. Pradhan Mantri Fasal Bima Yojana (PMFBY)
Available to farmers at very low rates of premium.
Farmers to get full insurance. No capping of sum insured.
Insurance cover at all stages of crop cycle.
Focus on covering non-loanee along with loanee farmers.
Target for area coverage 40% ( ) and 50% ( )

12. Flagship Schemes 6. . Rashtriya Krishi Vikas Yojana (RKVY - RAFTAAR)
Incentivise States to increase public investment in agriculture & allied sectors
Provide flexibility & autonomy to States in process of planning and executing schemes.
Focus on pre and post-harvest infrastructure, integrated value chains
7. Mission for Integrated Development of Horticulture (MIDH)
Launched on 1st April 2014 for holistic growth of horticulture sector.
Ensures forward and backward linkages through a cluster approach with active participation of stakeholders.
Includes supply of quality planting material, technology promotion, productivity improvement, human resource development, creation of post-harvest management infrastructure.

13. Budget Announcements
Budget : Agriculture requires a holistic approach and is not merely about cultivation. A paradigm shift effected by adopting an enterprise approach for agricultural policies and programmes.
Farmer Producer Organisations (FPO) of less than Rs. 100 crore turnover exempted income tax for first five years - to encourage professionalism in post-harvest value addition.
Organic farming by Village Producer Organisations (VPO) and FPOs to be encouraged in large clusters, preferably of 1,000 hectares each.
Cluster based cultivation & development to achieve economy of scale in the horticultural supply chain though FPOs/VPOs.
Operation Greens on lines of operation flood with a focus on agri-logistics, processing & professional management. Total of Rs. 500 crore allocated.
Agri-Market Infrastructure fund of Rs. 2,000 crore to set up 22,000 GrAMs (rural level markets & aggregation hubs), and upgrade 585 APMCs.
Institutional mechanism to develop policies on price and demand forecasts, futures & options and Exim policies for agriculture.
Institutional credit for agriculture to be boosted by enhancing the target of credit tof Rs. 11 lakh crore.
Minimum Support Price (MSP) for unannounced kharif crops to be 1.5 times the cost of production.
Launch a restructured Bamboo mission with Rs 1,290 crore to promote the sector holistically. Bamboo is “green-gold”.
Irrigation development (PMSY) allocation increased to Rs 2,600 crore. Focus on 96 districts where less than 30% land holding is with assured irrigation.
Fisheries & Aquaculture Infrastructure and Animal Husbandry Infrastructure Development Funds - total corpus of Rs 10,000 crore.
Allocation to Ministry of Food Processing Industries doubled to Rs. 1,400 crore. To promote agro-processing financial institutions for this.
Women Groups (SHGs) to be encouraged in organic agriculture under NRLM. Allocation to NRLM increased to Rs 5,750 crore
Govt to spend Rs lakh crore in rural areas for the creation of livelihood and infrastructure (roads, houses, toilets, etc.).
PM’s Gram Sadak Yojna Phase-III to include road links to GrAMs, etc. GrAMs to also be on eNAM and exempt from APMC regulations.
Kisan Credit card opened to Fisheries and Animal Husbandry farmers to meet their working capital needs.

14. Doubling Farmers’ Income
Hon’ble PM’s’ Vision to Double Farmers Income by 2022.
To address agrarian distress, farmers welfare and in- equitability.
Income approach adopted shifting focus from production to post-production, subsistence farming to commercial farming systems.
An inter-ministerial Committee on Doubling Farmers Income was constituted with members from civil society, different ministries, etc. Ten volumes of the Report of DFI Committee already placed in public domain and parallel action to implement some of its recommendations is already taken.
Farmer’s Net Income = Production x Price – Cost of Cultivation

15. Current Status of Farmers’ Income and Expenditure
Based on sample survey by NSSO (July, 2012 to June, prices
Average monthly income/agril. household: Rs.6426
Average monthly consumption exp./ag. household : Rs.6223
Sources and composition of farmers’ income in percentage
Cultivation
Livestock
Wages / salary 32.2
Non-farm business
Ratio of farm income:non-farm income: 60:40

16. Key Findings and Recommendations
Real income growth rate ( to )
Cultivation %
Livestock %
Non-farm business 0.5%
Wages & salaries 1.6%
Hence, emphasize more on livestock.

17. Effect of Targeted Growth Rates on Farm Income
Doubling in real terms ( to ) ( , base year)
Change income ratio of farm income: non-farm income from 60:40 to 70:30.
Change in farmers’ income 10.4% of annual G.R.
Adopt fork to farm approach in production.
Adopt sustainable production system.
Figure in Rs.
Farmers Income
Base Year:
At Prices
Terminal Year:
At Current Prices
Farm
Non-Farm
Total
All India
58,246
38,457
96,703
1,16,165
76,529
1,92,694
1,63,456
1,07,922
2,71,378

18. Seven Sources of Income Growth
DFI Committee identified Seven Sources of Income Growth:
Improvement in crop productivity
Improvement in livestock productivity
Resource use efficiency or savings in cost of production
Increase in cropping intensity
Diversification towards high value crops
Improvement in real prices received by farmers
Shift from farm to non-farm occupations
Report of DFI Committee on website-

19. Investment in Agriculture
Positive correlation between investments in agriculture and agricultural growth
Increase public investments ‘for agriculture’
Rural roads, rural electricity, irrigation
Private investments by farmers growing, but not by corporate sector – policy support needed
Current growth rate/annum of investments – around 10%

20. Additional and Cumulative Investments Required
DFI needs an annual farm income growth rate of 9.23%.
Division of Agri-Investment and Infrastructure
Futuristic Public and Private Investments (Rs. billion) and required annual rate of growth
Private Investment in Agriculture
Public Investment ‘for’ Agriculture
(Base Year)
to (additional 7 years)
Total (base year plus additional)
At price
Rs.610
(Rs.61,000 crore)
Rs.645
(Rs.64,449 crore)
Rs.1255
(Rs.1,25,448 crore)
Rs.1171 (Rs.1,17,000 crore)
Rs.1900 (Rs.1,90,000 crore)
Rs.3071
(Rs.3,07,100 crore)
Required annual rate of growth
9.15%
(2002 to 2012)
10.9% --
12.45%
(2000 to 2013)
14.8%

21. Principles of Strategy
Production not a Challenge – productivity is.
De-risk Agriculture
Monetise the Output
Address structural issues
Sustainability to form the basis

22. Assuring Returns to Farmers
Government’s historical Budget, 2018 announcements
In case of 25 MSP notified commodities:
Minimum MSP of 1.5 time the cost of production
Committed to honouring MSP – robust procurement policy
Niti Aayog mandated to finalize fool proof mechanism for delivery of MSP to farmers in consultation with central and state govts.
Policy objective – ensure remunerative prices on farmers’ produce – DFI.

23. Remunerative Prices to Farmers
Two-fold intervention
Market driven – ensure prices above MSP
Market imperfections will exist – intervention policy needed – MSP based procurements.
New market architecture
GrAMs as aggregation platforms
Competitive agricultural wholesale markets
Export promotion
Facilitate Optimal Value realization while continuing to provide support where needed.
Aggregate - Retail - Wholesale - Exports

24. Reforms of Wholesale Markets
Model APLM Act, 2017
Bouquet of reforms – transparency, competitiveness, integration, online
Certain non-negotiable provisions
Creation of alternate markets
Level playing field to public (APMCs) and private sector markets
Separation of roles & responsibilities and authority between developmental (MD, Marketing Board) and regulatory (Director Marketing ) authorities
Elected market committees
Online trade and multiple platforms
States must adopt Model APLM Act making suitable modifications, as needed.

25. MSP and Procurement Instruments
MSP (notified for 14 kharif, 7 rabi, 4 seasonal crops)
Robust procurement 1.5 times cost of production
FCI and State procurement
Private Procurement & Stockist Scheme (PPSS) (new)
Market Assurance Scheme (MAS)
Price Deficiency Payment Scheme (PDPS)
NITI Aayog holding discussions with States on other options

26. Thank You
Thank You