1.1    The Department of Agriculture & Cooperation is responsible for formulation and implementation of national policies and programmes for agricultural growth through optimum utilization of the country’s land, water, soil and plant resources.  The Department undertakes programmes to achieve improvement in the productivity levels and increased production of agricultural and horticultural produce as also measures to provide remunerative returns to the farmers for their produce.

1.2   The Minister of Agriculture holds overall charge of the Department.  He is assisted in his work by a Minister of State.

1.3   Secretary (Agriculture & Cooperation) is the administrative head of the Department.

1.4   Major activities and achievements of the Department during 2003-04 are summarized in the following paragraphs.

CROP PRODUCTION

2.1     After an adverse agro-climatic condition faced by Indian Agriculture during 2002-03, resulting in steep decline in the foodgrains production by about 18 percent from the preceding year, the agriculture economy has resurged during the year 2003-04.  The country’s foodgrains production during 2002-03 had slumped to 174.19 million tonnes, due to widespread drought, from the record level of 212.02 million tonnes in 2001-02.   Assuming favourable weather during the remaining period of the rabi crop season, the overall production this year is expected to exceed the record level attained in 2001-02.

2.2   During Kharif, 2003-04 production of rice has been estimated at 75.05 million tonnes which is more than the 66.51 million tonnes achieved during kharif 2002-03.  The production of Wheat for 2002-03 is estimated at 69.32 million tonnes as against the target of 78.00 million tonnes.  For the year 2003-04 target of 78 million tonnes has been fixed.

2.3   The coarse cereals production during kharif 2003-04 has been estimated at 27.96 million tonnes which is more than Kharif 2002-03 production of 20.03 million tonnes.  The production of Jowar & Bajra during kharif 2003, has been estimated as 4.61 million tonnes and 7.72 million tonnes, respectively.  This is more than the production achieved during kharif 2002 which was estimated as 4.22 million tonnes and 4.63 million tonnes for Jowar and Bajra, respectively.

2.4   The sugarcane production during 2002-03 is estimated at 281.58 million tonnes against the target of 320 million tonnes.  For the year 2003-04 the target of 320 million tonnes has been repeated.

 2.5   The production of Jute & Mesta during 2002-03 has been estimated to be 11.38 million bales as against the target of 12.00 million bales of 180 kgs each.  During the year 2003-04 the production is likely to remain at the last year’s level.

TECHNOLOGY MISSION ON COTTON

2.6.1        The estimated production of Cotton during 2002-03 was 9.31 million bales against the target of 15.00 million bales of 170 kgs each.  During the year 2003-04 production of cotton is expected to be at 13.12 million bales with an anticipated record productivity.

2.6.2        In view of lower yields and poorer lint quality of cotton as compared to many other countries, a Centrally Sponsored Scheme of Mini Mission-II of Technology Mission on Cotton (TMC) is under implementation.  The programme is being implemented during 2003-04 in 13 States viz. Andhra Pradesh, Gujarat , Haryana, Karnataka, Madhya Pradesh, Maharashtra , Orissa, Punjab , Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and Tripura.

2.6.3        The major focus is for production and supply of seed, transfer of technology through frontline demonstration by ICAR, field demonstration by states and training of farmers/dealers/extension workers as well as concerted efforts for pest management activities like IPM, IRM, supply of pheromone traps/bioagent etc.  Besides, thrust has been given for supply of water saving devices like sprinklers and drip irrigation system.

2.6.4        Due to implementation of scheme, besides improving yields during 2003-04, pesticide consumption has been substantially reduced. This was possible through additional support to select cotton districts by a Centrally Sponsored Scheme of Insecticides Resistance Management (IRM), being implemented by CISR, Nagpur under ICAR .

ON FARM WATER MANAGEMENT FOR INCREASING CROP PRODUCTION IN EASTERN INDIA

2.7.1        The scheme is for increasing crop production through exploitation of abundant surface and ground water.  This is a back-ended linked scheme and is being implemented through NABARD in coordination with the State Governments in the States of Assam, Arunachal Pradesh, Manipur, Mizoram, Orissa, Bihar , Jharkhand, Chattisgarh, Uttar Pradesh (Eastern) and West Bengal

2.7.2        Assistance @ 30% of cost is given to farmers by Government of India for construction of shallow tube wells, dug wells, low lift irrigation, and use of water pumps.  During 2003-04, an amount of Rs. 8200 lakhs has been made available to NABARD as GOI subsidy for the implementation of the scheme.

TECHNOLOGY MISSION ON OILSEEDS AND PULSES

3.1           The Technology Mission is responsible for development of Oilseeds and Pulses and Maize through its four Mini Missions on production technology, post harvest handling, input supply and support services, marketing and credit aspects.  In addition, the National Oilseeds and Vegetable Oils Development Board is also working as a precursor to the Technology Mission for opening of new areas and non-traditional seasons for promotion of Oilseeds cultivation.  

3.2           A Centrally Sponsored Oilseeds Production Programme (OPP) is being implemented in 28 States covering 408 selected districts in the country.  Financial assistance is being provided for various critical inputs like production and distribution of seeds, distribution of seed minikits, distribution of improved farm implements, sprinkler sets, rhizobium culture and PSB/micro nutrients etc.   Frontline demonstrations are organized by the Indian Council of Agriculture Research (ICAR) to disseminate the production technology amongst farmers.  Besides, block and integrated pest management demonstrations are organized through State Department of Agriculture.  A new component of crash programme for quality seed production of groundnut and soybean has also been introduced during the Ninth Plan.  Implementation of Oilseeds Production Programme has helped in increase the production of oilseeds from10.83 million tonnes in 1985-86 to 24.75 million tonnes during 1998-99.  There has been marginal decline in production during the last three years due to drought conditions in major oilseed producing States.  The estimated production of oilseeds during 2002-03 is 15.06 million tonnes.  The total outlay for the scheme for 2003-2004 is Rs.98,26,60 thousand, out of which the Government of India’s share is Rs.83,70,00 thousands.  The thrust areas identified for increasing production of oilseeds during Tenth Plan are special production programme in areas at the tail end of the command irrigation system, diversification programme of rice – wheat system, convergence of oilseeds production programme with watershed development programme, inter cropping of oilseed with other crops and extension of these crops in selected regions of the various States for production.

3.3           National Pulses Development Project (NPDP) covers 350 districts in 30 states/Union Territories .  The scheme is being implemented on 75:25 sharing basis between central Government and State Government.  In the case of Union Territories , the entire expenditure is met by the Central Government.

3.4           Maize is cultivated over an area of 65.93 lakh hectares with a grain production of 133.02 lakh tonnes (2001-2002) annually in India .  About 80% of cultivated maize is kharif rainfed.  Maize is cultivated mainly for food, fodder, feed and industrial use.  More than 3500 value added products of daily application are derived from maize.  In view of importance of maize, maize was included under the Technology Mission on Oilseeds and Pulses (TMO&P) in 1995.  Since then, maize is taken care of under “Accelerated Maize Development Programme (AMDP)” of the Technology Mission on Oilseeds & Pulses (TMO&P) implemented in 26 States with objective of enhancing its production and productivity in the country.  The total outlay for AMDP for the year 2003-04 is Rs.6,49,33 thousand out of which, Government of India share is Rs.5,37,00 thousand including Rs.1,00,00 thousand allocation for North Eastern States. The production target for 2003-2004 is 140.00 lakh tonnes.  Target for the year 2004-2005 is 146.00 lakh tonnes.

3.5           A sub-programme on maize based cropping system for food security in India under GOI-UNDP Food Security Programme for a total amount of US $ 8,14,000, being fully funded by UNDP is implemented in six districts in three States viz. Bihar , Rajasthan and Uttar Pradesh for five years, w.e.f. 1999-2000. The sub-programme has been extended for its implementation for two years more along with additional funds of Rs.3000 thousand.

3.6           The indigenous technologies developed through R&D programme are popularized by setting up demonstration units in industries with partial grant-in-aid assistance from TMOP&M, Department of Agriculture & Cooperation.  The partial grant-in-aid assistance is provided in the form of plant and machinery.

3.7           Oil Palm, the highest yielder of edible oil produces 4-5 tonnes of oil per hectare.  An Oil Palm Development Programme has been taken up in identified areas in nine States.  An area of 50,000 hectare has been brought under oil palm cultivation in these States.  Processing units have been set up at six places in Andhra Pradesh and Karnataka with a capacity of 20 MT FFB per hour to ensure processing of oil palm within 24 hours of harvesting.

RAINFED FARMING SYSTEM

4.1           Of the 142 million hectares of cultivated land, 60 percent is rainfed.  Government has accorded high priority to the holistic and sustainable development of rainfed areas through integrated watershed development approach.  National Watershed Development project for Rainfed Areas launched in 1990-91 in 25 States and 2 Union Territories was continued during Ninth Five Year Plan in 28 States (including 3 newly formed States of Uttaranchal, Jharkhand and Chattisgarh) and 2 UTs for increasing agricultural productivity and production in rainfed areas through sustainable use of natural resources.  An area of 27.66 lakh ha. has been treated against a target of 22.5 lakh ha. with an expenditure of Rs.9108063 thousands during Ninth Five Year Plan period.  The scheme of NWDPRA has been subsumed with the Scheme for Macro-Management of Agriculture from 2000-01.  The scheme is being continued for implementation during Tenth Plan under the revised guidelines with peoples’ participation covering more than 6000 micro-watersheds.  It is estimated to develop an area of about 20 lakh hectares during Tenth Plan.  Against physical target of 20.00 lakh hectares, the cumulative area developed since beginning of the Tenth Plan (April 2002) to September, 2003 is 1.83 lakh hectares.

4.2           As follow up action to the Union Finance Minister’s Budget (1999-2000) Speech, a Watershed Development Fund (WDF) has since been established at NABARD with the objective of integrated watershed development in 100 priority districts in 14 States through participatory approach.  The total corpus of the WDF is Rs.200,00,00 thousand which includes Rs.100,00,00 thousand by NABARD and a matching contribution of Rs.100,00,00 thousand by the Government.  The fund is being utilized to create the necessary framework conditions to replicate and consolidate the isolated successful initiatives under different programmes in the government, semi-government and NGO sectors.

4.3           Multisectoral Development Projects with World Bank assistance are implemented in Assam , Bihar , Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Punjab , Rajasthan, Uttaranchal and Uttar Pradesh.  A German assisted Watershed Development Project in Maharashtra is implemented through NABARD, Danida assisted projects are implemented in Karnataka, Madhya Pradesh, Orissa and Tamil Nadu.  A DFID assisted project is also implemented in Karnataka.

HORTICULTURE

5.1           Horticulture has been recognized as a means of diversification in agriculture in an eco friendly manner through efficient land use, optimum utilization of natural resources, besides creating opportunities for generating employment, particularly for unemployed youths and women folk.  The favourable agro-climatic conditions of the country has induced the farmers for growing a large variety of horticultural crops such as fruits, vegetables, including root and tuber crops, mushroom, ornamental crops, medicinal and aromatic plants, spices and plantation crops like coconut, arecanut, cashew and cocoa.    India has emerged as largest producer of fruits and the second largest producer of vegetables in the World.

5.2           Multifaceted programmes were taken up for promotion and development of horticulture include promotion of fruits, vegetables, spices, coconut, cashew, cocoa, floriculture, root and tuber crops, medicinal and aromatic plants, mushrooms, bee-keeping and use of plastics in agriculture.

5.3           Major thrust for development of horticulture is proposed in expansion of area, supply of better planting/seed material, rejuvenation/rehabilitation of existing plantations, installation of drip irrigation system, popularization of green house cultivation, infrastructure for post-harvest handling and marketing and development of market intelligence, etc.

5.4           New direction has been given to development of floriculture to satisfy growing domestic and export demand.

5.5           Special programmes of rehabilitating diseased/senile coconut and pepper gardens were implemented through attractive incentive schemes and support for essential inputs.

5.6           Major thrust was given to popularizing new technologies, viz. True Potato Seeds in Potato, Tissue culture for multiplication of planting material, etc.  A network of spawn production and pasteurized compost units has been established to promote rapid growth in mushroom production.

5.7           An ambitious programme for promoting use of plastics in agriculture through drip irrigation, green house, mulching, new plasticulture application was taken up.  A subsidy of 90% in the case of SC/ST and small and marginal farmers and women farmers and 70% in the case of other farmers with a ceiling of Rs.25000 per ha. was provided. 

5.8           The Technology Mission for Integrated Development was extended to J&K, Himachal Pradesh and Uttaranchal during 2003-04 for facilitating horticulture led transformation of the region.

5.9           FAO assisted projects on (i) Improving Banana Production for Small Scale Growers; and (ii) Apple Production Improvement were launched.  Additional Cold storage facility for 38.28 lakh tonnes was created.

5.10         Ministry of Agriculture is the nodal Ministry for implementation of Bamboo Mission.

INTEGRATED NUTRIENTS MANAGEMENT

6.1           The consumption of chemical fertilizers in terms of nutrients has been estimated to increase to 85.59 lakh tonnes during Kharif 2003 from 73.32 lakh tonnes in kharif 2002.  This was due to normal monsoon rains received during 2003-04.  All chemical fertilizers except urea continue to be decontrolled.  The Government continues to provide subsidy to the manufacturers of urea to enable its availability to farmers at reasonable prices.  Also for enabling sale of decontrolled Phosphatic (P) and Potassic (K) fertilizers at reasonable prices, the Government has been implementing a scheme of Concessional sale of P&K fertilizers.  Urea is the only fertilizer under statutory price control, though Government is fixing indicative MRP for Phosphatic and potassic fertilizers also to ensure its availability at reasonable prices to farmers under the Concession scheme.  The new Urea Pricing Scheme has been implemented by Department of Fertilisers (DOF) w.e.f. 1.4.2003. Under the new policy, decontrol of Urea distribution and movement is initiated in stages.

6.2           To ensure adequate availability of quality fertilizers to farmers, fertilizer was declared as an Essential Commodity and Fertiliser Control Order (FCO) was promulgated under Section 3 of Essential Commodities Act, 1955 to regulate trade, price, quality and distribution of fertilizes in the country.   The FCO has been recently amended to make it more user friendly and to ensure its effective enforcement.  The enforcement of this Order has primarily been entrusted to State Governments.  The Central Government provides training facilities and technical guidance to States and supplements their efforts through random inspection of manufacturing units and their distribution network through the Inspectors.

6.3           The price of urea and other fertilizers which continue to be at the level as on 28.02.2002.  Urea is now being made available to the farmers at a uniform price of Rs.4830 per tonne.

6.4           With a view of promote the use of biofertilisers as environment friendly, cheaper and supplementary source of plant nutrients, Government has set up a National Project on Development and Use of Biofertiliser during the Sixth Plan which is continued till date.  A National Biofertiliser Development Centre at Ghaziabad and six Regional Biofertiliser Centers at Hissar, Jabalpur , Bangalore , Nagpur , Bhubaneshwar and Imphal have been set up.  These centers are engaged in the promotion, extension, training and demonstration of biofertilisers and also look after organic farming besides quality control of biofertilisers.  This is proposed to be subsumed into National Project on Organic Farming once it is approved for implementation during Tenth Plan.

SEEDS

7.1           Seed is a critical and basic input for attaining sustained growth in agricultural production.  Distribution of assured quality seed is necessary for attaining higher crop yields.  Policy initiatives for  quality seed production and distribution of improved plant varieties developed by the scientists have contributed to our self sufficiency in food grains.  The Indian seed industry has also shown impressive growth and should continue to provide further potential for growth in agricultural production. 

7.2           A draft Seed Bill to replace the Seed Act, 1966 is under consideration.  The salient features of the proposed legislation are compulsory registration of seed varieties and de-regulation and decontrol of the Seed Industry.

7.3           A scheme for implementation of Legislation on Plant Varieties and Farmers’ Rights Protection has been launched to protect plant breeders’ rights for stimulating investments for research and development for development of new plant varieties and facilitating the growth of the seed industry in the country to ensure availability of high quality seeds to the farmers.

7.4           The National Seeds Policy has been formulated to provide a framework for ensuring the growth of Seed Sector in a liberalized economic environment and to provide Indian farmers with a wide range of high quality seeds/planting material in adequate quantities.

7.5           A Task Force has been set up under the Chairmanship of Dr. M.S. Swaminathan to suggest a long term policy on application of biotechnology in agriculture.

7.6           The schemes to increase the production and distribution of seeds are being continued. In order to ensure that farmers get good quality seeds, quality control arrangements are being strengthened.

PLANT PROTECTION

8.1           The Central Integrated Pest Management Centres are promoting biological control of crop pests by encouraging conservation and augmentation of naturally occurring bio-agents and large scale laboratory rearing and release of beneficial organisms.  During the current financial year (upto 31^st December, 2003 ) a total of 42,709 import permits for seeds/plant materials for sowing/propagation have been issued.  Screening of imported commodities of 8,872 thousand metric tonnes and 8,234 thousand numbers of plants/plant material have been undertaken from the Plant Quarantine angle.  Phyto-sanitary inspection for export of 14,145 thousand metric tonnes and 7,624 thousand numbers of plants and plant materials was attended to and 50,168 numbers of Phyto-sanitary Certificates (PSCs) were issued.  A total of 1760,000 thousand of bio-control agents have been mass produced in the laboratories and released (upto December, 2003) against insect-pests in rice, cotton, sugarcane, pulses, vegetables and oilseeds against the targeted release of 1669,000 thousand during the year 2003-04.  An area of 594 thousand ha has been covered against the targeted area of 512 thousand ha in different States against various insect pests through augmentation and conservation.

8.2           The Locust Warning Organisation (LWO) monitors locust development/activities over an area of 2.00 lakh sq km of the Scheduled Desert Area (SDA) in parts of Rajasthan, Gujarat and Haryana states.  It has 5 circle offices and 23 Locust Outposts (LOPs) with its field Headquarters at Jodhpur .  Besides, there is one Field Station for Investigations on Locusts (FSIL) situated at Bikaner .  To strengthen the Locust monitoring and forecasting, a Remote Sensing Laboratory has also been set up to prepare vegetation maps based on satellite imageries for locust forecasting.  Satisfactory locust control potential is being maintained in the form of pesticides, plant protection equipments, wireless sets and trained technical and mechanical staff.

8.3           Food safety issues are an area of growing concern all over the world.  To ensure ecologically safer food products, the stress area is control of pesticide residue contents by fixing of maximum residue limits so as to bring them down to internationally accepted minimum tolerance levels, so that agricultural products are safe for human consumption.

8.4           The Department has adopted Integrated Pest Management (IPM) as main plank and cardinal principle of plant protection strategy in overall crop production programmes to reduce the use of toxic chemical pesticides to the barest minimum with a view to minimize environmental pollution (air, water & soil) and maintain ecological balance. In order to popularize IPM technology among the State Extension functionaries and farmers, the demo-cum-training programmes had been launched by organizing 366 Farmers’ Field School (FFSs) in rice, cotton, vegetables, pulses and groundnut during Kharif, 2003 in 23 States/UTs wherein 1147 agriculture extension officers and 11,102 farmers were trained in IPM approach.  In these FFSs training programmes, women farmers were also trained.  To achieve the annual target of conducting 652 FFSs, training 3260 agriculture extension officers and 19,560 farmers, FFSs are being set up in Rabi(2003-04) crops also.  IPM packages of practices in respect of 77 crops have already been developed and sent to States/CIPMCs across the country for implementation thereof.   The IPM programme is being implemented with the cooperation of State Governments and Indian Council of Agricultural Research.  The research efforts at Field Station for Investigations on Locust (FSIL), Bikaner have been intensified on bio-control for locust control in order to minimize the use of chemical pesticides for locust control.

AGRICULTURAL IMPLEMENTS AND MACHINERY

9.1           Farm Machinery Training and Testing Institutes set up at Budni (Madhya Pradesh), Hissar (Haryana), Garladinne (Andhra Pradesh) and Biswanath Chariali ( Assam ) imparted training in proper selection, repair, maintenance and management of farm machinery and testing of farm equipment.  A total of 2926 personnel were trained, and 82 equipments tested till December, 2003 in these institutes.

 9.2           Subsidy is given to farmers for the purchase of various agricultural equipments including hand tools, bullock drawn/power driven implements, sprinkler and drip irrigation equipment, planting/reaping and threshing equipment, tractors, power tillers and other specialized agricultural machines, under the Centrally Sponsored Scheme of “Macro-management of Agriculture –  Supplementation/Complementation of States Efforts through Work Plans”.  Subsidy on identified equipment is also made available to the farmers under the Centrally Sponsored Schemes for oilseeds and pulses development.

AGRICULTURAL CREDIT

10.1         Progressive institutionalization of the agricultural credit for providing timely and adequate credit support to farmers has been the focus of the credit policy of the country.  Agricultural credit is disbursed through a multi-agency network consisting of Commercial Banks (CBs), Regional Rural Banks (RRBs) and Cooperatives.  With their vast network (covering almost all the villages in the country), wider coverage and outreach extending to other remotest part of the country, the cooperative credit institutions both in the short and long-term structures, have remained the primary institutional agency for dispensation of agricultural credit.  The share cooperatives in total agricultural credit flow and total rural deposits is around 43% and 31% respectively and the small farmers constitute 44% of their total membership.  The total ground level credit flow for agriculture and allied activities increased from Rs.319,56,00,00 thousand in 1997-98 to Rs.640,00,00,00 thousand in 2001-02.   The flow of institutional credit for agriculture and allied activities has increased from Rs.31956 crore in the year 1997-1998 to about Rs.75000 crore in the year 2002-03.

10.2         The total requirement of agricultural credit for the X Plan period has been projected at about Rs.736570 crore by the Working Group constituted by the Planning Commission.

10.3         The Government of India has initiated various policy measures to improve the accessibility of farmers to the institutional sources of credit.

10.4         To provide adequate and timely credit support for the banking system to farmers for their cultivation needs in a flexible hassle free and cost effective manner, a Kisan Credit Card (KCC) was introduced in 1998.  The banking system has issued more than 350 lakh cards upto 31^st October, 2003 .

10.5         In order to target the two critical components of a farmer’s income, namely yield and price through a single insurance policy, a Pilot Scheme on the Farm Income Insurance Scheme (FIIS) has been launched in Rabi 2003-04.  Initially the scheme is being taken up on pilot basis in selected States/districts for wheat and rabi-rice crops.  Based on the outcome of the pilot implementation, the scheme would be appropriately fine tuned as necessary.

COOPERATION

11.1         The cooperative movement has been recognized as an instrument of socio-economic change in the country, particularly in the rural economy.  Cooperatives have been playing an important role in the disbursement of credit, distribution of inputs such as fertilizers, seeds and pesticides, and production, processing, storage and marketing of agricultural produce.  The total number of cooperative societies increased from 1.81 lakh during 1950-51 to 5.45 lakh as on 31.3.2002.  The total membership of cooperative societies have registered an impressive growth from 1.55 crore during 1950-51 to 23.62 crores as on 31.12.2003.

11.2         At the national level the National Cooperative Development Corporation (NCDC), National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Union of India (NCUI) implement various programmes for the development of cooperatives.

11.3         The main objectives of the NCDC are to promote, strengthen and develop cooperatives of farmers with a view to increasing production and productivity.  The various schemes of NCDC relate to distribution of agricultural inputs, setting up of post-harvest facilities, processing and storage facilities, marketing of agricultural produce and supply of consumer goods in the rural areas.  The Corporation also has programmes for the development of the non-farm sector with special focus on the weaker sections of the community such as persons engaged in handlooms, sericulture, poultry, fishery, etc. 

11.4         The NCDC (Amendment) Act, 2002 has come into force w.e.f. 16.9.2002.   This amendment has enlarged NCDC’s scope of activities to cover livestock, cottage and village industries, handicrafts, rural crafts and certain notified services besides facilitating NCDC to lend directly to cooperative societies without State Government guarantee on prescribed norms and conditions.  Further, the Department has declared (i)water conservation works/services, irrigation, micro-irrigation in rural areas undertaken by the cooperatives (ii) animal care/health, disease prevention through the cooperatives (iii) agricultural insurance and agricultural credit through the cooperatives (iv) rural sanitation/drainage/sewage system through the cooperatives to be the notified services.

11.5         NAFED as a National level Cooperative Marketing Federation has been engaged in wholesale and retail business in agricultural produce and commodities with a view to protecting the interest of the farmers.  It is the Central Nodal Agency for undertaking the Marketing Intervention Scheme (MIS) for horticultural produce as well as for eggs.

11.6         The National Cooperative Union of India (NCUI) and the National Council for Cooperative Training (NCCT) has been implementing various educational and training programmes for promoting the cooperative movement in the country.  Education and training for persons involved in cooperatives are being provided through the Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM) at Pune, 19 Institutes of Cooperative Management and 96 Cooperative Training Centres which are located in different parts of the country.

11.7         A Market Intervention Scheme (MIS) has been implemented for procurement of horticultural commodities on the request of a State/UT Government which bears 50 per cent loss, if any, in its implementation.  The MIS is implemented in order to protect the growers of horticultural commodities from making distress sale in the event of bumper crop during the peak arrival period when prices tend to fall below economic levels.  Further, either there should be at least 10 per cent increase in production of 10 per cent decrease in the ruling rates over the previous normal year.

NATURAL RESOURCES MANAGEMENT

12.1         Out of the geographical area of 329 million hectare of the country, an estimated area of 173 m. ha. suffers from degradation due to water and wind erosion and other problems like salinization, waterlogging and shifting cultivation practices, etc.  Besides, various developmental activities such as roads, industries, mining, etc., have affected the land availability for agriculture.  The schemes for Soil Conservation in the catchments of the River Valley Projects and Flood Prone Rivers is now subsumed under Macro Management of Agriculture.  Priority delineation of catchments under River Valley Projects and Flood Prone Rivers Scheme has been carried out by All India Soil and Land Use Survey Organisation.

12.2         The Scheme for Watershed Development project in Shifting Cultivation Areas was continued in seven North Eastern States.

12.3         The scheme for reclamation of alkali soils subsumed under Macro Management, is being implemented in Haryana, Punjab , Uttar Pradesh, Gujarat , Madhya Pradesh and Rajasthan.  Another scheme for reclamation of Alkali land in Bihar and Uttar Pradesh was also implemented with EEC Assistance.  Due to reclamation of Alkali land, land productivity has been improved.

12.4         Participation of the beneficiaries under various programmes at each level of planning, implementation and operationalisation of the project has been ensured.  In the formation of self help groups and water-user groups, women have played vital role in the project and also improved their socio-economic status.  Employment opportunities have been generated for the rural community through their active involvement in the reclamation programme.

12.5         An Indo-German Bilateral Project on Watershed Management (IGBP) implemented in selected catchments of River Valley Projects (RVP) and Flood Prone Rivers (FRP) is currently in its 5^th  phase.  This phase is proposed for a period of 18 months with an outlay of Rs.50000 thousand for the development of watersheds in India .

EXTENSION

13.1         Agricultural Extension promotes agricultural development by providing the extension functionaries and the farmers with information, training and other extension support on a continuous basis on improved production technologies.

13.2         Television in India today has both terrestrial and satellite capabilities.  Doordarshan through its 1000 plus Low Power and High Power Transmitters cover the entire country.  These transmitters are equipped with direct telecasting facilities enabling them to narrow cast for a small area.  Similarly, there is an available capacity with the IGNOU for the satellite telecast of a channel.  Accordingly, an agricultural channel has been launched through IGNOU which will begin with one hour of national telecast, repeated four times a day.  By the end of the Plan Period, it is proposed that the channel will telecast 12 hours a day.  It will give news and messages about agriculture having national relevance and appeal.  It is also proposed to use FM Radio for local specific interactive role for agricultural extension and support.  It is envisaged that one hour broadcast will be provided on this network for seven days a week.

13.3         The impressive telecommunication roll out in the country has been tapped for providing a service on demand facility to the farming community.  The entire country will be covered in all the principal languages by a network of Call Centers, which will enable the farmers to get expert advice through a toll free telephone call.  By dialing the toll free number 1551, the farmer will reach an agriculture graduate who will be able to respond to his queries and problems.  In case, the respondent at the Level-I is not able to satisfy the farmer, the call can be taken, on a conference, to an expert sitting anywhere in the State in any institution, for giving advice.

13.4         One International Exhibition was organized at Khartum , Sudan during the year to highlight the achievements in Indian agriculture and to explore international market for export of Indian agricultural commodities.  As in previous years, Krishi Expo and India International Trade Fair, 2003 were organized during March 2003 and November 2003 respectively.

13.5         The National Agricultural Technology Project (NATP) with World Bank assistance for restructuring public extension services to become more farmer responsive and for creating an enabling environment for greater participation of non-governmental sector, is under implementation in seven States, namely, Andhra Pradesh, Bihar,  Himachal Pradesh, Jharkand, Maharashtra, Orissa and Punjab.  Agriculture Technology Management Agency (ATMA) as a registered society has also been established in 28 project districts of seven States.  Under each ATMA, a block level Farm Information and Advisory Centers (FIACs) have been created to facilitate farmer interface.

13.6         With a view to increasing the coverage and efficiency of extension services, efforts made by Non-Governmental Organisations (NGOs) have been dove-tailed through a Central Sector Scheme.

13.7         To have a strong interaction between Department of Agriculture & Cooperation (DAC) and Indian Council of Agricultural Research (ICAR) and to develop joint strategies, two interfaces were organized for pre-Rabi and pre-Kharif seasons.

13.8         A Central Sector Scheme “Establishment of Agri-Clinics and Agri-Business and Agricultural Graduates” is being implemented since 2001-2002.  It aims at extending opportunity to all eligible agriculture graduates, to support agriculture development through economically viable ventures as stakeholders.  The scheme provides for bank finance, on one hand, and entrepreneurship training, on the other, facilitating opportunities for self-employment to agriculture graduates in agricultural and allied enterprises.  By end of December, a total number of 20,570 application have been received by MANAGE of which 4,066 have been trained and 803 trained graduates sets up their ventures/centers.

13.9         Training Courses and Workshops were organized to upgrade knowledge and skills of senior and middle level extension managers and grass-root level extension functionaries in Extension Management, Communication and Subject Matters Areas.  Particular emphasis was placed on strengthening Extension Services in the North-Eastern States , and other small States and Union Territories .

13.10       Extension Services for women were further strengthened.  The Central Sector Scheme for women in Agriculture was implemented in fifteen states to motivate and mobilize farm women into groups so that farm inputs, technology, extension support could be channelised through the network of these groups.  Externally aided projects were also implemented in seven States for training of women.

ECONOMIC ADMINISTRATION

14.1         The Directorate of Economics and Statistics (DES), an attached office of the Department, collects, disseminates and publishes statistics on diverse facets of agriculture and related sectors required for policy formulation by the Government.  Several initiatives have been taken to bring about improvement in the coverage, quality and timely availability of these statistics.  Among the various functions of the DES, the most well known is perhaps the one relating to Minimum Support Prices (MSPs), which are fixed on the basis of the recommendations made by the Commission for Agricultural Costs and Prices (CACP).  The most important factor considered by the CACP in making its recommendations on MSPs for different crops is the cost of cultivation/production for which the data base is provided by the DES through its plan scheme on cost of cultivation.

14.2         The time schedule for announcement of MSPs has been revised and every effort is being made to make timely announcement of MSPs.  In the case of Kharif crops of 2003-04 season, the MSPs were announced in July 2003.  Oilseeds, Pulses and Cotton have gained substantially by way of higher increase in the MSP.  The Minimum Support Price of Sunflower seed has been raised by Rs.55 per quintal followed by Rs.45 per quintal increase in MSP of Groundnut-in-shell and Soyabean (Yellow & Black) while the MSP of Seasmum and Nigerseed has been raised by Rs.35 per quintal each.

14.3         The MSP of Cotton has been raised by Rs.50 per quintal.  The increase in the MSPs of Arhar, Moong and Urad has been to the tune of Rs.40 per quintal each.  The MSP in respect of Paddy, Coarse grains and Copra has been increased by Rs.20 per quintal each.  The MSP of Jute has been increased by Rs.10 per quintal.

14.4         In the case of rabi crops of 2003-04 season to be marketed in 2004-05 the MSPs were announced in December 2003.  While the increase in MSP in the case of rapeseed / mustard has been of the order of Rs. 270 per quintal, the increase in the case of safflower has been of the order of Rs.200 per quintal.  Similarly, an increase of Rs.180 per quintal each in the MSP of gram and masur has been announced.  The increase in the MSP of wheat has been relatively much lower at Rs.10 per quintal.  The substantial increase in the MSP of rabi oilseeds and pulses, vis-a-vis, wheat is expected to facilitate crop diversification in Indian agriculture.  Recent trends in the MSPs of different crops may be seen from the statement given at annexure.

PRICE POLICY

14.5         The Commission for Agricultural Costs and Prices (CACP) recommends price policy for important agricultural commodities.  The recommendations aim to evolve a balanced and integrated price structure in the perspective of the overall needs of the economy with due regard to the interest of both the growers and consumers.  The commodities under the purview of CACP include rice, wheat, coarse grains, sugarcane, tobacco, cotton, jute, pulses and oilseeds.

14.6         It is recognized that the price policy followed by the Government has been instrumental in promoting technology adoption and investment by growers.  The contribution of price policy in making the country self sufficient in food grains has also been well recognized.  In May 2003, an Expert Committee was set up under the Chairmanship of Prof. Y.K. Alagh, to examine the recommendations made by the National Seminar on Methodological Issues in Fixing Minimum Support Prices.  The Terms of Reference of the Committee include examination of (a) existing mandate of the CACP; (b) existing cost concepts, including the appropriateness of existing methods followed in imputing the value of (i) family labour, (ii) rental value of land, (iii) interest on capital; etc.  The Committee is likely to submit its Report by the end of the current financial year.

TRADE

15.1         The Agreement on Agriculture (AoA) of the World Trade Organisation (WTO) came into effect from 1 January, 1995 incorporating the results in agricultural products of the Uruguay Round of multilateral trade negotiations.  AoA sought to establish a fair and market oriented system through the process of negotiations of commitments on support and protection through operational rules and disciplines in the areas of market access, domestic support and export subsidies.   Value of agricultural exports increased by 11.43% to 33,126 crore as compared to the corresponding period of last year.  The share of agricultural exports in total exports of the country was 13.10% during the period.

15.2         The total value of agricultural imports during the period of April, 2002-March, 2003 was Rs.171001500 thousand which is higher by Rs.8435400 thousand or 5.19 percent as compared to the value of imports during the corresponding period last year.  The percentage share of agricultural imports in the total value of national imports during the period under review has been higher and remained at 5.74 percent as against 4.98 percent during the corresponding period of last year.

15.3         During the current year, a number of proposals relating to foreign direct investment in the agricultural sector have been cleared by the Department, subject to the approval of the Foreign Investment Promotion Board/Hon’ble Finance Minister.  To speed up the processing of such proposals and to win the confidence of the foreign investors, the Fast Track Committee (FTC) in this Department to review and monitor the progress of implementation of the mega project proposals relating to foreign direct investment, has also been reconstituted.

INTERNATIONAL COOPERATION

16.1         India ’s active participation in International activities helped mobilize technical and financial assistance for agriculture and allied sectors.

16.2         The 23^rd World Food Day was celebrated at the Gandhi Smriti and Darshan Samiti at 5, Tees January Marg, New Delhi on 16.10.2003.  The theme chosen by the FAO this year was “International Alliance Against Hunger”. 

16.3         FAO assisted projects under the Technical Cooperation Programme (TCP) are ‘Improvement of Banana Production for Small – Scale Growers’; signed on 20.9.2001.   Health Management of Shrimp Aquaculture in Andhra Pradesh approved and signed on 23.7.2003.   “Developing National Food Insecurity and Vulnerability Information and Mapping System (FIVIMS) in India ” signed on 26.9.2003 for a period of 14 months.

16.4         The UNDP continue to provide financial and technical assistance in the form of foreign experts, consultants, fellowships, equipments etc. under their assistance programme.  Currently, a UNDP funded Programme for supporting Food Security in India , with financial assistance of US $ 13 Million for five years is under implementation from April, 1998.  The Food Security programme is an umbrella programme under which six sub-programmes with an estimated budget outlay of Rs.45.12 Crores are under implementation.

16.5         During 2003-04, so far, the Department has participated in 43 International Conferences/ Meetings/seminars etc. dealing with various aspects of agricultural development organized by the FAO and other International Organisations.  In addition, technical clearances for the visits of 85 State Government Ministers/Officers were conveyed to the Department of Economic Affairs for their foreign visits.

16.6         India is a member country of World Food programme and is also a member of the Executive Board of erstwhile known as the Committee on Food Aid (CFA) Policies and Programmes.  India continued to have fruitful bilateral relations with several developed countries.

16.7         European Community (EC) extends assistance in the form of grants which can be used to finance the rupee as well as foreign exchange cost of identified projects.  EU aid commitments to India are made on an annual basis during bilateral consultations.  At present one EC assisted project, namely, Ravine Stabilisation project is under implementation in Uttar Pradesh.

16.8         Presently, there are six ongoing agricultural sector based projects which are being operated with the World Bank-assistance.  Out of these, four projects are undergoing their first phase of operation and the remaining two projects, namely, the Integrated Wateshed Development Project (Hills) and U.P. Sodic Land Reclamation Project are currently under-going their second phase of operation, after having successfully completed their first phase operation in March, 1999 and March, 2001 respectively.  These ongoing projects mainly relate to Watershed Development, Soil and Water Conservation measures (Natural Resource Management), agriculture extension, improved agricultural practices, as well as overall agricultural development related issues.

16.9         During the current year, 23 officers have been nominated for training/deputations abroad under various programmes to acquire knowledge and expertise in agricultural and allied fields.

16.10       10 officers from the Department/Attached Office/Subordinate Offices have been deputed for consultancy, short-term assignment, training, workshop, symposium etc. to Thailand , Japan , Armenia Germany, People’s Republic of China , DPR Korea and Mauritius .  Under the Food and Agriculture Organisation’s Special programme for Food Security two experts were sent to Mozambique and three to Lesotho .

16.11       The Government of India has been providing technical assistance under the various programme of the Ministry of External Affairs, such as Technical Cooperation Scheme (TCS) of Colombo Plan, Indian Technical and Economic Cooperation (ITEC) Programme, Special Commonwealth African Assistance Programme (SCAAP), Aid to Sri Lanka Programme etc. and those sponsored by the Food and Agriculture Organisation (FAO), United Nations Development Programme (UNDP), World Bank, British Council etc., on self-financing basis to the member countries in the form of training facilities in India. 

16.12       Memoranda of Understanding between India and Zambia , Thailand and France on cooperation in the field of Agriculture and Allied sectors was signed during the year. 

DROUGHT MANAGEMENT

17.1         As drought in the country has a direct causal relationship with the activity and coverage of monsoons, the progress of this natural phenomenon continues to be monitored by the Department in close collaboration with the India Meteorological Department (IMD).  As reported by the IMD, though the onset of South-west Monsoon during the year 2003 over Kerala was a little delayed, it advanced steadily thereafter and covered the North-eastern States by normal date.  Unlike 2002, during the South-West Monsoon, 2003 (1.6.2003 to 30.9.2003), the country as a whole received 922.5 mm against normal rainfall of 902.7 mm (+2% of normal).  Out of 36 Meteorological Sub divisions in the country, 7 received excess rainfall, 26 received normal rainfall and only 3 received deficient rainfall.  In other words, during the South-west Monsoon 2003, the country as a whole received adequate rains.

17.2         During the Post Monsoon Season (1.10.2003 to 31.12.2003), the country as a whole received 135.8 mm against normal rainfall of 124.9 mm with a deviation of +9%.  Out of 36 Meteorological Sub Divisions, 18 received excess/normal rainfall and 18 received deficient/scanty rainfall.  Out of the three Sub Divisions which received deficient rainfall for the period ending 30^th September, the position is as under:-

                North Interior Karnataka     -18%

                South Interior Karnataka    +14%

                Kerala                                     + 2%

After July, 2003, the following declarations of drought have been made by the respective State Governments:

Andhra Pradesh            442 mandals of 21 districts

Jharkhand                       551 panchayats of 15 districts

Karnataka                       149 taluks of 25 districts

Kerala                              14 districts

Maharashtra                   71 taluks of 11 districts

17.3         States have the primary responsibility of dealing with natural disasters including drought.  Central Government extends financial and logistical support to the State Governments to deal with such disasters.  For the Drought of 2002-03, the Central Government released Central share of Calamity Relief Fund (CRF) amounting to Rs.20132200 thousand and another Rs.22017300 thousand was released from National Calamity Contingency Fund (NCCF) for drought mitigation works.  In addition 87.36 lakh MTs of foodgrains was also released under Special Component of Sampoorna Grameen Rozgar Yojana (SGRY), free of cost, for generation of relief employment in the drought affected States.  In response to the Memoranda for Central assistance received from the States of Karnataka, Andhra Pradesh and Maharashtra, Central Teams were sent to these States for on-the-spot assessment of drought situation.  2^nd Installment of Central share of CRF for 2003-04 was released in advance to Karnataka and Maharashtra and 6 lakh MTs of foodgrains to Andhra Pradesh, 3.30 lakh MTs to Karnataka, 2 lakh MTs to Maharashtra and 25,000 MTs to Kerala have so far been allocated for relief employment.  The recommendations made by the Inter-Ministerial Central Teams in respect of drought situation in Karnataka was considered by the High Level Committee (HLC), headed by the Deputy Prime Minister, and assistance of Rs.1158600 thousand from NCCF was released to Karnataka.  For Andhra Pradesh and Maharashtra , assistance of Rs.505800 thousand and Rs.442500 thousand from NCCF have been approved for release to these States.  Another Central Team visited Karnataka for fresh assessment of the situation.  The Memorandum received from Kerala is under consideration.

17.4         Specific activities focused on preparedness, mitigation, public education and community awareness were taken up.

INFORMATION TECHNOLOGY

18.1         The NICNET based Public Information and Facilitation Centre (PIFC) set-up to provide information to the general public, researchers etc. is functioning.  Connectivity has been provided to all the field offices and Directorates of DAC like Crops Development Directorates, National Horticulture Board, etc. for better information exchange and monitoring under DACNET Scheme.

18.2         The Information Technology Group set up has suggested improvements in information support to Subject-matter Divisions and State/District agriculture offices.  In-house Computer Training facilities provide training to the officers/staff at various levels.

18.3         Informatics support on various subjects is provided by the National Informatics Centre.  E-Mail/Internet facilities are provided for information exchange.  Video Conferencing facilities have been provided by NIC.  A Local Area Network (LAN) has been set up.  A Home Page has been launched.

18.4         Several initiatives mainly development of Agricultural Informatics and Communication, Agricultural Resources Information System, Strengthening of IT Apparatus in Agriculture and Cooperation in the States and Union Territories are under various stages of implementation.

AGRICULTURAL CENSUS

19.1         Agricultural Census is conducted in the country to meet the data need of planning for development and requirements of World Census of Agriculture.  This Census is conducted in the country at five yearly interval beginning from 1970-71.  The Census is followed by an Input Survey.  So far, this Department have completed five Agricultural Censuses.  The results of the Sixth Agricultural Census with reference year 1995-96 have been finalized. The Seventh Agricultural Census with reference year 2000-01 (Agricultural year), which is being followed by an Input Survey with reference year 2001-02 is in progress in the States and Union Territories .  The main responsibility of the Department is to give guidance to the States/UTs for conducting Agricultural Census and the Input Survey and to bring out all India results based upon data received from States/UTs.  The actual implementation of the Scheme is carried out according to a time schedule decided after necessary deliberations and consultation with States/UTs.

MACRO MANAGEMENT OF AGRICULTURE

 20.1         The pattern of schematic assistance to States through Centrally Sponsored Schemes was reviewed and it was decided to provide Central assistance to the States on the basis of State-wise Work Plans to be prepared by the States themselves.

20.2         Agriculture being a State subject, the primary responsibility for increasing agricultural production, enhancing productivity and exploiting the vast untapped potential of the sector vests with the States.  The role of the Centre is to complement and supplement the efforts so that agricultural development yield quick results and benefits percolate down to the poorest farmers.  Consequently States’ efforts are supplemented/ complemented through Work Plan (Macro Management) evolved by integrating 27 identified schemes.

20.3         The Scheme provides flexibility to States to select schemes of their choice out of 27 schemes and their components and include them in their Work Plans.  The States also have flexibility within given parameters to include new interventions in the Work Plan provided it is not covered under any other scheme of the Central Government or is not a part of any on-going State Scheme.   The approved pattern of assistance is in the ratio of 90:10 for the Centre and the States respectively except in the case of North-Eastern States which are provided 100 percent Central assistance.  The Central assistance is released in ratio of 80 percent Grant and 20 percent Loan.

COORDINATION

21.1         Department continued its endeavour for strict compliance and implementation of orders issued by the Government from time to time, regarding reservations in services for Scheduled Castes, Scheduled Tribes, Other Backward Classes, Ex-servicemen and Physically Handicapped persons.  During the year, the Liaison Officer conducted on-the-spot inspection of Reservation Rosters maintained by various appointing authorities as well as the attached and subordinate offices under the Department.  The Liaison Officer also apprised them of the instructions issued by Department of Personnel & Training from time to time for the maintenance of Reservation Rosters and implementation of orders on the subject, in letter and spirit.

21.2         A High Power Committee headed by Joint Secretary (Credit & Cooperation) is constituted in the Department to look into any incidence of sexual harassment of women workers.  During the current year, no complaint has been received from any women employees in the Department of Agriculture & Cooperation.

21.3         During the year 2003, twenty-one officers of the Department were deputed for various training courses/programmes conducted or sponsored by the Institute of Secretarial Training and Management (ISTM).

AGRICULTURAL MARKETING

22.1         The Government has been playing an important role in developing the Agricultural Marketing System in the country.  Department of Agriculture & Cooperation has two organisations dealing with marketing, under its administrative control, namely, the Directorate of Marketing & Inspection (DMI) and the National Institute of Agricultural Marketing (NIAM), Jaipur.

22.2         Directorate of Marketing & Inspection inter-alia, renders advice on statutory regulation, development and management of agricultural produce markets to States/UTs promotion of standardization and grading of agricultural and allied produce etc.

22.3         The National Institute of Agricultural Marketing (NIAM) is imparting training to senior and middle level executives of agricultural and horticultural departments, agro industries, corporations etc.  It also undertakes research in agricultural marketing, appraisal of markets and marketing projects, formulates objective criteria for selective development of physical markets etc., offers advisory and consultancy services on marketing policies etc. and undertakes surveys, study of rural market management.

22.4         With a view to strengthening and developing agricultural marketing system in the country, a Task Force set up by this Ministry in its report of 28^th June, 2002 , has outlined several reforms in the agricultural marketing sector.  The reform measures suggested include amendment to the State laws dealing with the agricultural marketing for promotion of direct marketing and contract farming programmes and development of agricultural markets in private and cooperative sectors.  A Model Act on Agricultural Marketing has been formulated and sent to States to guide them in implementation of the suggested reform measures.

22.5         With a view to provide the farming community with facilities for scientific storage for agricultural commodities so that wastage and produce deterioration are avoided and also to enable it to meet its credit requirement without being compelled to sell the produce at a time when the prices are low, a capital investment subsidy scheme has been implemented during 2001-03 for construction of rural godowns by individuals, group of farmers, cooperatives, local bodies etc.  Under the scheme, so far, 3975 projects with a capacity of 82.44 lakh tonnes have been sanctioned and Central Government have released Rs.134.86 crores for these projects as subsidy.

22.6         With a view to establish a nationwide information network for speedy collection and dissemination of price related information to farmers, 735 important agricultural markets have been provided with computer facilities and internet connectivity.  2000 more wholesale markets in the country are now planned to be further provided with internet connectivity.  It is expected that by the end of Tenth Plan, one-third of the major wholesale markets in the country would have on-line facility to provide price and market related information to farmers.

…………

(Rs. per quintal)

@            Statutory Minimum Price linked to a basic recovery of 8.5 per cent with proportionate premium for every

0.1     per cent increase in recovery above that level.

 The MSP for masur (lentil) has been fixed from the crop year 2000-01.

 #              Figures in brackets indicate percentage increase.