Indian Agriculture: Performance and Challenges

#India accounts for only about 2.4 % of the world s geographical area and 4 % of i
ts water resources,
but has to support about 17 % of the world s human population and 15 % of the live
stock.
#Agriculture is an important sector of the Indian economy, accounting for 14% of
the nation s GDP, about 11% of its exports,
about half of the population still relies on agriculture as its principal source
of income and it is a source of raw material for a large number of industries.
#Accelerating the growth of agriculture production is therefore necessary not on
ly to achieve an overall GDP target of 8 per cent during the 12th Plan
and meet the rising demand for food, but also to increase incomes of those depen
dent on agriculture to ensure inclusiveness.
#The area under jowar, bajra, small millets, ground nuts, rapeseed and mustard,s
unfower and mesta has witnessed a negative growth during the 11th Plan.
#Given the limitations in the expansion of acreage, the main source of long-term
output growth is improvement in yield.
#Growth in yields of sugarcane and rapeseed & mustard suggest that their yields
seem to have attained the plateau and
need renewed research to boost their productivity levels.
Horticulture:
#The horticulture sector has been a driving force in stimulating a healthy growt
h trend in Indian agriculture.
#India is currently producing 257.2 million tonnes of horticulture produce from
an area of 23 million ha.
#Introduction of the Horticulture Mission for North East & Himalayan States (HMN
EH) and the National Horticulture Mission (NHM) in the Xth Plan has borne positi
ve results.
#Given the increasing pressure on land, the focus of growth strategy is on raisi
ng productivity
by supporting high density plantations, protected cultivation, micro irrigation,
quality planting material,
rejuvenation of senile orchards and
thrust on post harvest management, to ensure that farmers do not lose their prod
uce in transit from farm gate to the consumer s plate
Livestock Sector:
#The agriculture sector in India is predominantly part of a mixed crop-livestock
farming system.
#The livestock sector supplements income of the farmers, provides employment, dr
aught power and manure.
#The development of livestock sector is more inclusive and can result in a susta
inable agriculture system.
#India is the largest producer of milk in the world and the second largest produ
cer of fish in the world.
#The rate of growth in livestock sector has also been higher than that in the cr
op sector in the recent years.
Major Schemes for Accelerating Agricultural Production:
#Rashtriya Krishi Vikas Yojana (RKVY), launched in August 2007, incentivizes the
states to increase public investment in agriculture and allied sectors taking a
gro climatic conditions, natural resource issues and technology into account, an
d integrating livestock, poultry and fisheries more fully while providing more f
exibility and autonomy to the states in planning and execution of the schemes.
#This scheme includes several commodity specifc measures namely Bringing Green R
evolution to the Eastern Region of India (BGREI), Special Initiative for Pulses
and oilseeds, Accelerating Fodder Production, Creating Vegetable Clusters, Initi
atives for Nutritional Security through Intensive Millet Promotion (INSIMP), oil
Palm Development, Protein Supplements, Rainfed Area Development Programme and t

he Saffron Mission
#Beside RKVY, National Food Security Mission (NFSM) and the National Horticultur
e Mission (NHM) have also emerged as the path breaking interventions which have
helped in achieving record production of cereals, pulses, oilseeds, fruits, vege
tables and spices during 2010-11 and 2011-12.
#With the focused interventions under the National Food Security Mission support
ed by other programs and schemes and conducive price policy regime, target of 20
million tonnes of additional food grains production has been exceeded during th
e 11th five year plan.
#There is a record export of cereals that has gained not only huge foreign remit
tance but has also stabilized global food economy through increased availability
and reasonable price.
#BGREI has started involving promotion of innovative production technologies and
agronomical practices addressing the underlying key constraints of different ag
ro-climatic sub regions to reduce over exploitation of natural resources in the
north-west region and to increase the productivity of rice, wheat, maize and pul
ses.
#System of Rice Intensifcation (SRI), laser land leveling; hybrid rice technolog
ies and line transplanting of rice seedlings etc. are being promoted under this
initiative.
#There is a need to bridge the yield gaps in low productivity regions by effecti
ve technology dissemination which can be combined with an effcient supply and se
rvice system, strengthening and reorienting agricultural R&D, reducing regional
disparities targeting rain fed areas and emphasizing development of high potenti
al, resource rich states in eastern India.
#Ensuring stability in food systems through optimal combination of food procurem
ent, stocks and trade, in co-ordination with price movements needs to be given e
mphasis to improve economic conditions of farmers.
#Besides enhancing the production and productivity of our agriculture, there is
fruits, vegetables, milk and dairy pro
a need to diversify into high value items
ducts to meet the changing dietary preferences and to realize higher income for
the farmers.
#Towards this end Government is giving special emphasis to the production of pul
ses, oil seeds and fruits and vegetables, in which we are short of our requireme
nts.
Growth of Agriculture Sector:
#As per the Central Statistics Offce (CSO) agriculture and allied sectors grew a
t 3.6 per cent during 2011- 12, recording an average rate of growth of 3.6 per c
ent per year during the 11th Plan (2007-12).
Regional Variations in Growth:
#As agriculture is a state subject, the overall performance of the agriculture s
ector in India largely depends on what happens at the state level.
#There is a wide variation in the performance of different states.
#During the 11th Plan (i.e. 2007-08 to 2011-12) the growth performance of agricu
lture in Madhya Pradesh (7.6%), Chhatisgarh (7.6%), Rajasthan
(7.4%), Jharkhand (6.0%) and Karnataka (5.6%), was much higher than that of Punj
ab (1.6%), Maharashtra (2.0%), Tamil Nadu (2.2%) West Bengal (2.8%), Uttar Prade
sh (3.3%) and Haryana (3.3%).
#High coeffcient of variation (>2) was observed in the case Himachal Pradesh and
Maharashtra.
Capital Formation in Agriculture:
#Investment or capital formation is one of the basic requirements for growth of
any sector.
#Even though the Gross Capital Formation (GCF) in agriculture & allied sectors a
s percentage of agricultural GDP has increased from 14.9 per cent in 2006-07 to
19.8 per cent in 2011-12, when compared with the overall capital formation in th
e economy which is about 40 per cent of the GDP, capital formation in agricultur

e sector is much lower.

#The share of public sector capital formation in agriculture & allied sectors ha
s come down from 25 per cent in 2006- 07 to about 15 per cent in 2011-12 where a
s that of private sector has gone up from 75 per cent to 85 per cent.
#While a higher share of private sector investment in agriculture is a welcome f
eature, public sector investment is critical as it is generally found to acceler
ate private investment.
#Investment in irrigation, rural roads, power, telecommunication, marketing infr
astructure, research and extension services generally tend to result in high gro
wth of the agricultural sector and reduction in poverty.
#Given scarce fiscal resources, agriculture investment strategy should be guided
by effcient and equitable resource use with high pay offs.
Land and Water:
#The progressive fragmentation of land holdings, degrading natural resource base
and emerging concerns of climate change are escalating pressure on land and wat
er.
#Land and water resources being finite, increased agricultural production and a
diversifed food basket to meet the requirement of the increasing population with
higher per capita income, has to emanate from the same limited net sown area by
increasing productivity with an optimal use of available water and land resourc
es.
#Natural resources viz. arable land, water, soil, biodiversity (plant, animal an
d microbial genetic resources) are rapidly shrinking due to demographic and soci
o-economic pressures, monsoon disturbances, increasing frequencies of floods and
droughts.
#Overuse of marginal lands, imbalanced fertigation, deteriorating soil health, d
iversion of agricultural land to nonagricultural uses, depleting aquifers & irri
gation sources, salinization of fertile lands and water-logging are pressing cha
llenges requiring urgent attention.
#A prudent land use policy, water availability and soil health have to be mainta
ined at levels that are conducive to pursue agricultural activities with higher
level of productivity.
#Land degradation is major threat to our food and environmental security.
#Various kinds of land degradation such as water and wind erosion, water logging
, soil alkalinity/sodicity, soil acidity, soil salinity, mining and industrial
waste results in soil loss.
#Of the soil so eroded, 29% is permanently lost to sea, 10% is deposited in rese
rvoirs reducing their storage capacity and rest 61% gets shifted from one place
to another.
#Signifcant increase in use of chemical fertilizers particularly in the north-we
stern part of the country coupled with imbalanced nutrient application, non-judi
cious use of pesticides, intensive cropping system, and decline in soil bio- div
ersity and depletion of organic matter in soil are areas of concern requiring ur
gent attention.
#Climate change is likely to impact agricultural land use and production.
And also less availability of water for irrigation, higher frequency and intensi
ty of inter and intra- seasonal droughts and floods, low soil organic matter, so
il erosion, less availability of energy, coastal flooding etc. could impact agri
cultural growth adversely.
#For proper management of natural resources and to ensure sustainable agricultur
e growth in the country, there is need for a land use policy which should be int
egrated with all developmental programmes for the holistic development of rural
areas, natural resource management and eco-restoration.
#Considering skewed ownership of land, it is necessary to strengthen implementat
ion of laws relating to land reforms, with particular reference to tenancy laws
and leasing, distribution of ceiling surplus land and wasteland, providing adequ
ate access to common property and wasteland resources and consolidation of holdi
ngs.
#Computerization of land records, formulation of policy on diversion of agricult

ural land for non- agricultural uses, updating of land and soil survey maps, fin
alization of an enabling frame work for involvement of private sector in natural
resource management, and encouraging Public Private Partnership in land and wat
ershed development programmes are urgently required.
#Substantial chunks of scarce land remain untilled because of landowners reluctan
ce to lease out land for fear of losing its ownership.
#A signifcant per cent of the tenants are landless and marginal farmers. These t
enants would beneft from leasing-in since it would help them to expand their min
iscule holdings and allow better use of their labour resources.
#There is a need to urgently address the issue of legalizing land leasing.
#Increasing demand for industrialization, urbanization, housing and infrastructu
re is forcing conversion of agricultural land to non agricultural uses; the scop
e for expansion of the area available for cultivation is limited.
Irrigation and Water Use Effciency:
#While the net sown area has come down from 143 million hectares in 1990- 91 to
140 million hectares in 2009-10, cropped area has gone up by 6 million ha, from
186 to 192 million ha during the same period due to increase in the cropping int
ensity from 130 to137 per cent.
#Water is a scarce natural resource, fundamental to life, livelihood, food secur
ity and sustainable development.
#Water demand is increasing rapidly due to population growth, urbanization and c
hanging lifestyle. andthere is a severe constraint in the availability of water
for agriculture.
#Climate change might complicate further the existing temporal and spatial varia
tion in availability of water.
#Low water use effciency, poor maintenance of irrigation systems and poor recove
ry of water charges are some of the major problems associated with the managemen
t of water resources in the country.
#Inadequate and sub-optimal pricing of both power and water is promoting the mis
use of groundwater.
#The decline in the water table across the country is a matter of serious concer
n.
#There is a need to promote participatory management of aquifers to ensure susta
inable and equitable use of water.
#Promotion of micro-irrigation techniques, alignment of cropping pattern with th
e availability of water and greater involvement and empowerment of Water Users a
ssociations in the command areas could lead to improvement in water use effcienc
y.
#The ultimate irrigation potential in the country is estimated at about 140 mill
ion hectares. Of this, about 58.5 million hectare is from major and medium irrig
ation sources, and 81.5 million hectare is from minor irrigation sources (ground
water irrigation and surface water)
#Groundwater provides about 70 percent of irrigation and 80 per cent of the drin
king water supplies.
#The widening gap (about 15 %) between irrigation potential created and that bei
ng utilized is also a matter of concern.
#This gap needs to be narrowed within the shortest possible time.
#Ineffcient water use in irrigation is also leading to environmental degradation
via water logging and induced salinity.
#Micro-irrigation technologies like drip and trickle systems, surface and subsur
face drip tapes, micro-sprinklers, sprayers, micro-jets, spinners, rotors, bubbl
ers, etc. have great potential in improving water use effciency.
#However, despite wide promotion, only about 0.5 million hectare are currently u
nder micro-irrigation .
#Modern techniques such as micro-irrigation, watershed management, rainwater har
vesting and groundwater recharging are vital in utilizing the existing resources
and expanding the irrigation system in a viable manner.

#Major investment in research and development that enhance water use effciency i
s required.
#Extension services that reach out to farmers to help boost the speed of technol
ogy-adoption as well as develop specialized skills and knowledge related to wate
r application are necessary.
Inputs for Agricultural Growth:
#To enhance productivity, easy and reliable access to inputs such as quality see
ds, fertilizers, pesticides, access to suitable technology tailored for specifc
needs, the presence of support infrastructure and innovative marketing systems t
o aggregate and market the output from large number of small holdings effciently
and effectively are necessary.
#Use of high yielding varieties/hybrids as in the case of Bt cotton and maize, e
conomy in input use, and cost effective farming techniques such as System of Ric
e Intensifcation (SRI) are necessary to improve farm productivity.
Seed and Planting Material:
#Quality seeds and planting materials are the key agricultural inputs, which det
ermine the productivity of the crops.
#It is estimated that quality of seed accounts for 20-25% of productivity.
#Timely availability of quality seeds at affordable prices to farmers is necessa
ry for achieving higher agricultural productivity and production.
#Prudent mechanism for seed certifcation, testing, labeling and enforcement is n
ecessary to maintain seed quality.
#It is necessary to popularize new farming techniques like ridge-furrow sowing,
deep ploughing, zero seed drill and seed treatment for enhancing agricultural pr
oduction in the country.
Integrated Nutrients Management (INM):
#Chemical fertilizers are the immediate source of nutrients in soils.
#Consumption of nitrogenous (N), phosphatic (P) potassic (K) fertilizers has inc
reased from 1.1 million tones in 1966-67, the year preceding the green revolutio
n to 27.7 million tonnes in 2011-12.
#To encourage balanced use of fertilizers, government introduced Nutrient Based
Subsidy (NBS) policy from April 2010 where under a fixed rate of subsidy is anno
unced on nutrients, namely, nitrogen (N), phosphate (P), potash (K) and sulphur
(S).
#Price of urea is administratively decided. Hence, price of urea is much lower t
han that of other fertilizers.
#This has resulted in excessive use of urea, thereby distorting the balanced nor
ms of fertilizer application.
#Balanced fertilization would have ensured adequate availability of nutrients in
soil to meet the requirement of plants at critical stages of growth.
#Further, lack of awareness about soil testing and intensive agriculture is lead
ing to widespread defciency of micronutrients such as zinc, iron, manganese and
boron
#Soil organic Carbon (SOC) is central to soil health as it infuence soil structu
re, water retention, microbial activities, soil aeration and nutrient retention.
#Imbalanced NPK application, rising multi nutrient defciency and lack of applica
tion of organic manure are leading to reduction in carbon content in the soil.
#Depletion in soil organic carbon is leading to poor fertilizer use effciency (F
UE) of the soil.
#Intensive agriculture, while increasing food production, has at the same time c
aused second generation problems in respect of nutrient imbalance including grea
ter mining of soil nutrients, depletion of soil fertility, emerging defciencies
of secondary and micronutrients, decline of the water table and quality of water
, decreasing organic carbon content, and overall deterioration in soil health.
#Government is promoting Integrated Nutrient Management which advocates soil tes
t based balanced and judicious use of chemical fertilizers in conjunction with o
rganic sources of nutrients for improving soil fertility.

#Introduction of customized fertilizers which are crop specifc and area specifc
are recommended.
#INM includes use of chemical fertilisers in conjunction with bio-fertilisers, a
nd organic manures like Farm Yard Manure(FYM), compost, vermi-compost, green man
ure, Fruit and Vegetable Waste Compost, MSW compost etc.;
#We may consider provision of bio-fertilisers and seed treating material along w
ith seed packets.
Integrated Pest Management:
#The protection of crops from depredations of pests and diseases is a sine qua n
on (prerequisite) for higher agricultural productivity, increased farm incomes a
nd enhanced food security for the nation.
#The Risk of production loss upto 30% from incursion of pests and diseases needs
to be averted.
#The usage of chemical pesticides which had fallen drastically since 1991 has wi
tnessed a revival during the 11th Five Year Plan.
#Bio-pesticides usage has shown a steady increase in the last two decades to rea
ch a consumption level of more than 6000 MTs during 2011-2012
#Among the crops, cotton, rice, vegetables and fruits account for the largest sh
are of pesticide consumption in the country.
#Recognizing the imperative of safe and judicious use of pesticides, Governments
(Centre and State) have been trying actively to promote Integrated Pest Managem
ent.
#IPM advocates adoption of cultural and mechanical tools and need based applicat
ion of bio-control agents and bio-pesticides, while safe and judicious use of ch
emical pesticides is recommended only as a measure of last resort.
#IPM is being promoted primarily through training and demonstrations in farmers
field schools, capacity building programmes for extension personnel
#Whereas efforts are being made to control pests and diseases in crops, it is eq
ually important in the liberalized global trade environment to shore up our defe
nces against introduction of exotic pests and diseases into the country through
agricultural imports which have the potential to threaten agricultural/ horticul
tural crops and bio-security of the country.
#The quarantine regulatory framework is built around the Plant Quarantine Order
2003 which has laid down agricultural commodity and country specifc phytosanitar
y treatments for imports into the country.
Mechanization
#Availability of adequate farm power is very crucial for timely farm operations,
increasing land and labour effciency, increasing production and productivity an
d reducing crop produce losses.
#Farm mechanization can also address the issues of scarcity of farm labour durin
g peak agricultural seasons like sowing and harvesting.
#States with higher farm power availability have, in general, more productivity.
#The increasing threat to natural resources, notably land and water, has further
necessitated switching over to machine assisted resource- conservation techniqu
es such as zero-tillage, raised-bed planting, precision farming, etc.
#The decreasing trend in operational land holdings is an impediment in the growt
h of agricultural mechanization.
#Small and marginal farmers who cultivate about 85 per cent of the holdings and
account for nearly 44 per cent of the total cultivated area cannot afford high c
ost agricultural machines.
#High cost of mechanization and lower credit worthiness results in the exclusion
f majority of small and marginal farmers in India from the beneft of farm mechan
ization.
#In order to make farm equipments and machines available to the farmers at affor
dable cost, Farm Machinery Banks can be established to custom hire the machines
and equipments to the farmers.
#This will, besides increasing the power availability, help in removing the disp

arity in availability the farm power among various states and reduce the drudger
y associated with various farm operations.
#Department of Agriculture & Cooperation is integrating the components of agricu
ltural mechanization under various schemes and programmes through promotion of Cu
stom Hiring Centre for agricultural machinery.
#It has been estimated that about 18 to 25% losses occur in the entire food supp
ly chain from production to consumption.
A three pronged strategy involving
(i) compression of the supply chain by linking producers and markets;
(ii) promoting processing in production catchments to add value before the produ
ce is marketed; and
(iii) developing small-scale processing refrigerated chambers or cold storage us
ing conventional and non conventional sources
is required to reduce post harvest losses.
#This strategy would require greater attention to post-harvest engineering resea
rch and development.
Labour and Agricultural Wages:
#Agriculture is a labour intensive activity.
#Cost of cultivation data shows that labour accounts for more than 40 percent of
the total variable cost of production in most cases. therefore, availability of
labour to work in agriculture is crucial in sustaining agricultural production.
#Agricultural wages have traditionally been low, due to low productivity, large
disguised unemployment in agriculture sector, and lack of suffcient employment o
pportunities elsewhere.
#However, in recent years there has been a perceptible change in this trend due
to economic growth and adoption of employment generation policy like the MGNREGA
and increase in minimum wages under the Minimum Wages Act.
#However, agricultural wages, in general, are still much lower than the industri
al wages.
#With skill development, this gap will narrow down, putting further pressure on
availability and cost of agricultural labour.
#This further strengthens the necessity for agricultural mechanization in a mann
er that is inclusive and suitable for Indian conditions.
Agriculture Credit and Insurance:
#Agriculture Credit plays an important role in improving agricultural production
, productivity and mitigating the distress of farmers.
#Government has taken several measures for improving agricultural credit fow to
farmers.
-Crop loans up to a principal amount of Rs.3 lakh are being provided effectively
at 4 per cent per annum with an interest subvention of 4 per cent for timely re
payment of loans.
-Further, the benefit of interest subvention has been extended to small and marg
inal farmers having Kisan Credit Card for a further period up to six month post
harvest against negotiable warehouse receipt for keeping their produce in wareho
uses to avoid any distress sale
#The formal fnancial institutions accounted for about 66 per cent of the total c
redit to cultivator households by the early 1990s.
#However, the share of formal institutional credit to agriculture witnessed some
reversal during the period between 1991 and 2002 which was partly due to a cont
raction in rural branch network in the 1990s, and partly due to the general rigi
dities in procedures and systems of institutional sources of credit.
#Further, nearly three quarters of the farmer households still do not have acces
s to the formal credit system and have no means to insure themselves against inc
ome shocks. this leaves them vulnerable to the informal money lenders.
#The National Agricultural Insurance Scheme (NAIS) has been introduced in the co
untry from Rabi 1999-2000 season with a view to encourage the farmers to adopt p
rogressive farming practices, high value inputs and higher technology and to sta

bilize farm incomes, insurance coverage in the event of failure of the notifed c
rops as a result of natural calamities, pests and diseases.
#Besides the NAIS and MNAIS, Pilot Weather Based Crop Insurance Scheme (WBCIS) a
nd Pilot Coconut Palm Insurance Scheme (CPIS) are being implemented by the gover
nment.
#A broader base both in terms of area covered and crops insured is necessary for
the viability of the schemes.
Agricultural Extension Services:
#Over the years, extension system in the country has been exposed to multiple ch
allenges.
#Farmers needs in terms of information and technology support have become more co
mplex due to rapid pace of developments in the field of agriculture.
#Effcacious extension services are being provided by organising farmers into gro
ups.
#Quality of services being provided through Kisan Call Centres (KCCs) has been e
nhanced signifcantly with use of latest state of the art tools, dissemination of
information about new schemes & programmes and effective supervision & greater
involvement of State Governments.
Agricultural Prices and Markets:
#Food and agricultural commodity prices in India are primarily determined by dom
estic demand and supply factors.
#It has been observed that there is wide spread imperfection in the agricultural
produce markets.
#There is general opaqueness and poor price transmission mechanism.
#Consequently, there is a wide gap between the prices received by the farmers an
d the prices paid by the consumer.
#This is a major concern for the policy makers.
#Imperfect market conditions, restrictions on the movement of agricultural commo
dities due to infrastructural constraints, transport bottlenecks and local taxes
influence the retail prices trends across the major markets and consumption cen
tres.
#The enduring solution to price infation lies in increasing productivity, keepin
g the cost of production under control and removing market imperfections through
reforms and infrastructure improvements.
#Establishment of an effective system of grading and marking of agriculture prod
uce is necessary for an electronic agricultural marketing exchange.
#Contract farming has considerable potential in terms farmers access to modern te
chnology, quality inputs and marketing support through contractual agreement bet
ween processing and/or marketing firms for production support at predetermined p
rices.
#It is necessary that direct marketing and contract farming is promoted to facil
itate enhanced share of producers in consumer s rupee.
#Development of agricultural marketing infrastructure is the foremost requiremen
t for the growth of comprehensive and integrated agricultural marketing system i
n the country.
#Creation of scientifc storage nearer to farm is necessary to avoid wastage and
deterioration of the produce.
#Multiple intermediaries, high market taxes ranging from 13% to 15.5% ad-valorem
besides other market charges, poor marketing infrastructure and access are some
of the reasons for high retail prices and these need to be rationalized.
#There is a need for a Central legislation to ensure barrier free movement of ag
riculture commodities across the country to develop an integrated national marke
t.
#The stock limits and movement of agricultural commodities across the country ne
ed to be freed so as to facilitate an integrated national market for agricultura
l produce across the country.

#The Prime Minister s Economic Advisory Council (PMEAC) has also stressed in its r
ecent Economic outlook(2012-13) report the need for agricultural reforms.
#The areas that have been identifed for urgent attention include the reduction a
nd rationalization of input subsidies, ensuring glitch-free marketing of farm pr
oduce and liberalizing tenancy arrangements.
#The time schedule for rationalizing fertilizer subsidy through the nutrient-bas
ed subsidy regime calls for decontrolling the prices of urea, the most consumed
fertilizer.
#Ineffciency in power generation and huge transmission losses are not letting to
remove subsidies on power for agricultural purposes.
#The Council has also recommended for removing subsidies on canal water to impro
ve water use effciency and called for encouraging involvement of consumers in wa
ter and power distribution.
The Way Forward:
#While there has been a signifcant increase in production of foodgrains and othe
r agri-produce in the recent past, there are formidable challenges, e.g. a decli
ne in the average size of land holding, dwindling water resources and ineffcient
water use, the adverse impact of climate change, shortage of farm-labour, poor
and inefficient marketing infrastructure, and increasing costs and uncertainties
associated with volatility in international markets.
#The main determinants of agriculture growth would be:
(a) viability of farm enterprise and returns to investment that depend on produ
ctive infrastructure, such as soil and water conservation and expansion and impr
ovement of irrigation systems, market access, prices and risk;
(b) availability and dissemination of appropriate technologies that depend on q
uality of research and extent of skill development;
(c) plan expenditure on agriculture and in infrastructure which together with p
olicy must aim to improve functioning of markets and more effcient use of natura
l resources; and
(d) governance in terms of institutions that make possible better delivery of s
ervices like credit, quality inputs like seeds, fertilizers, pesticides and farm
machinery and,
#There is a need for crop diversifcation towards the high value crops such as
pulses, oilseeds and fruits and vegetables .
#From the point of both food security and sustainability, extension of green re
volution to low productivity areas in the Eastern Region where there is ample gr
ound water and surplus labour needs much higher emphasis.
#Equally important would be the development of suitable technologies and crop va
rieties particularly for rain-fed area, as 55 per cent of cropped area is rain-f
ed.
#To increase and stabilize supplies and thereby mitigate price volatility, impro
ved infrastructura services, particularly for transportation, storage and proces
sing, pro-smallholder innovations in credit fow, organisation of producers and o
ther stakeholders in the agriculture value chain with clear roles and responsibi
lities in cooperative which can provide an array of services from provision of i
nputs to enhancing market access fnancial services, technologies and information
are needed
#KCC is an innovative tool of credit delivery to meet the production credit requ
irement of the farmers in a timely and convenient manner.
#All eligible farmers should be brought within the umbrella of KCC in time bound
manner and it should be made single product catering the all credit needs of fa
rmers.
#To sum up, the thrust areas for the agriculture sector include enhancing public
sector investment particularly in research and technology transfer along with i
nstitutional reforms to make it more accountable towards delivery, conservation
of land, water and biological resources, development of rain fed agriculture, de

velopment of minor irrigation and water use effciency, timely and adequate avail
ability of inputs -seeds, fertilizers, pesticides, developing effcient marketing
infrastructure, increasing flow of credit particularly to the small and margina
l farmers.
#Improved performance at farm level will result in improved food security and im
proved farm livelihoods only if other components in the value-chain such as infr
astructure supporting,
agricultural upstream and downstream activities, including transport, storage, p
rocessing and marketing facilities for agricultural products are also developed
simultaneously.
#Continuous innovation to improve productivity and competitiveness of the agricu
lture sector are necessary to create jobs, generate income and alleviate rural p
overty.
#From the government s side, enabling policies and institutions in a variety of do
mains - from R&D to trade and markets, from natural resource governance to colle
ctive action by agricultural producers, agricultural extension and rural advisor
y services are necessary to bring knowledge, technologies, and services to farme
rs and entrepreneurs.
#Investment in relevant public goods which works both as a catalyst of, and comp
lements to, private investment in agriculture is necessary.