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AGRICULTURAL 
SECTOR IN INDIA 
Presented by:- Padma Pandey 
Archana 
MSc. Previous 2014
Agriculture continues to play a major role in Indian Economy 
It is generally described as the backbone of Indian economy and also 
plays a significant role in the growth of socio-economic sector in India. 
70% of the population is still directly or indirectly dependent on 
agriculture 
Green revolution transformed India from a food deficient stage to a 
surplus food market 
India is among the 15 leading exporters of agricultural products in the 
world, country accounted for 1.7 percent of global agricultural trade in 
2010
Continue… 
 On the eve of India's independence in 1947, Indian agriculture was characterized by feudal 
land relations and primitive technology, and the resultant low productivity per hectare. 
 As a consequence, rural India presented a picture of mass poverty and widespread 
unemployment or under-employment. 
 Therefore, the first task of the government in the immediate post-independence period was to 
initiate a growth process in the modernization of agriculture, both in terms of technological and 
institutional changes.
AGRICULTURAL STATES AND 
THEIR CONTRIBUTION
ARICULTURE IN NDIA
BUDGET FY 14 ; AGRICULTRE REMAINS 
PRIORITY 
In the Union Budget FY14, the Government of India allocated 
USD145.8 billion for agriculture credit, an increase of USD26.04 billion 
compared to FY13 
Funds allotted to the Agriculture Ministry increased 22 per cent to 
USD5.63 billion; of this, USD711.4 million is planned for farm research 
In Bringing Green Revolution to Eastern India (BGREI), the 
government allotted USD 208.3 million to improve agricultural 
production in Eastern states 
National Food Security Mission, a scheme to bridge yields gap of 
major crops, has been provided USD468.7 million
ROLE OF AGRICULTURE IN INDIAN ECONOMY 
1. Share in National income:- agriculture contributed two-thirds 
of national income. 
2. Largest employment providing sector:- In 1951, 69.5% of the 
working population was engaged in agriculture. 
• this percentage fell to 66.9% in 1991 and to 56.7% in 2011 
and in 2004-05 
3. Providing of food surplus to the expanding population:- 
domestic demand for food grains was placed at 207 million 
tones in 2004-05, about 234.4 million tones in 2011-2012 in 
11th year plan. And this is expected to increase further to 
280.6 million tones by 2020-21. 
4. Contribution to capital formation:- unless the rate of capital 
formation increases to a sufficiently high degree, economic 
development cannot be aceived.
Share in 
National 
income Largest 
ROLE OF 
AGRICULTURE 
IN INDIAN 
ECONOMY 
employmen 
t providing 
sector 
Contributi 
on to 
capital 
Providing of formation 
food surplus 
to the 
expanding 
population 
Importance 
in 
internationa 
l trade 
Providing 
raw 
material to 
industries.
Continue… 
• Since agriculture happens to be the largest industry in 
developing countries like India, it can must play a important 
role in pushing up the rate of capital formation. 
5. Providing raw material to industries. 
6. Market for industrial products:- increases rural purchasing 
power is a valuable stimulus to industrial development 
7. Importance in international trade:- the three agriculture 
based exorts of India- cotton textiles, jute and tea– 
accounted for more than 50% of export earning of the 
country
SCHMES AND PROGRAMMES 
• RKVY (Rashtriya Krishi Vikas Yojana) 
• National Food Security Mission (NFSM) 
• KCC (Kisan Credit Card)
RKVY (Rashtriya Krishi Vikas Yojana) 
• Was launched in 2007-08 with a outlay of Rs 27447 cores In the XI 
Five year Plan for incentivizing states to enhance public investment, 
for taking up 5768 projects across various sectors 
• (RKVY) was launched in the XIth Plan against a backdrop of faltering 
agriculture growth in the previous decades 
• It was designed as a State Plan Scheme with complete flexibility to 
the States to choose projects specifically tailored to their conditions 
for generating growth in agriculture and allied sectors. 
• In the XII Plan, the entire RKVY budget is proposed to be divided in 
three streams viz. Production Growth, Infrastructure & Assets, and 
Special schemes of national importance in the ratio of 40:40:20.
RKVY strategic objectives 
RKVY has two strategic objectives :- 
• first, to encourage States to allocate more funds for agriculture 
and allied sectors and 
• second, to incentivize States to generate additional growth in 
agriculture and allied sectors by better planning and 
undertaking appropriate growth oriented projects. 
• As a result of which, States' allocation to agriculture and allied 
sectors rose from Rs.8770 crore in the base year of 2006-07, 
to Rs.29413 crore in the year 2011-12
Various initiatives were taken to improve the agriculture sector 
• Green Revolution (1968) 
• Ever-Green Revolution (1996) 
• Blue Revolution (water, fish) 
• White Revolution (Milk) 
• Yellow Revolution (flower, edible) 
• ICT Revolution
Bringing Green Revolution in Eastern 
India (BGREI) 
•Scheme was launched in 2011, under 
RKVY, to strategically increase in 
productivity in Eastern states 
•BGREI actively promoted various 
technological interventions and 
emphasized on collaborative work 
among institutions, officials and 
farmers
OBJECTIVES OF (BGREI) :- 
• Yield maximization of rice and wheat per unit area by 
improving agronomy 
• Water harvesting and conservation; and 
• Water utilization (recycling of conserved water-surface 
water as well as groundwater.
NATIONAL FOOD SECURITY MISSION 
(NFSM) 
• National Food Security Mission 
(NFSM) :-Is a crop Development 
scheme of the Government of India . 
• Launched in august 2007 with an 
approved outlay of rs. 4,883 core for 
period of 2007 to 2012. 
• Aims at restoring soil health and 
achieving additional production of 
10,8 and 2 million tones of rice, 
wheat and pulses, respectively by the 
end of 2011-12.
Continue… 
• NFSM is presently under implementation in 482 Districts of 19 
States of the country with a view to enhance ,the production of Rice, 
Wheat and Pulses 
• through area expansion and 
•productivity enhancement; 
•restoring soil fertility and 
• productivity; 
•creating employment opportunities; and 
•enhancing farm level economy to restore confidence of farmers.
Strategies of NFSM 
strategy of the mission is to promote and extend :- 
• Improved technologies i.e., seed, 
micronutrients, soil amendments, Integrated Pest 
Management, Farm Machinery and 
• Resource conservation technologies along with 
capacity building of farmers with effective 
monitoring 
• Better management in the high potential 
districts in order to bridge the yield gaps 
• During the 12th Plan, it is proposed to include 
coarse cereals as well in the Mission. 
• Emphasis would be on promotion of 
technologies adopting cropping system approach 
in identified clusters
KCC (Kisan Credit Card) 
• To facilititate access to short term credit 
to farmers. 
• Scheme was introduced in in 1998-99. 
• The scheme has gained popularity and 
its implementation has been taken up by 
27 Cooperative Banks ad 196 Regional 
Rural Banks throughout the country. 
• About 10.78 crore KCC’s had been 
issued up to October 2011 
• KCC has received wide acceptability 
amongst bankers and farmers.
Continuee… 
• Govt. of India, revised operational guidelines on KCC were issued by NABARD 
to Cooperative Banks, RRBs and by RBI to Commercial Banks in the year 2012. 
• Banks were advised to devise suitable strategies to implement the scheme in a 
time bound manner. 
Improvements in the guidelines over the earlier KCC scheme are as under: 
• Paper card (pass book) to Plastic card - KCC in the form of ATM enabled Debit 
card 
• Wider delivery channels : Operations through Branch/Cheque facility/BCs/ATM 
(debit card)/POS/Mobile handsets 
• More clarity in assessing credit needs (inclusion of post harvest / 
household/consumption needs up to 10% + maintenance expenses up to 20%) 
• One time documentation at first availment and thereafter simple declaration 
from second year 
• Moving towards accessing online land record and Creation of charge.
INITIATIVES THAT WILL FURTHER PROP UP 
THE SECTOR 
FDI in multi-brand Retail 
• The government has allowed up to 51 per cent FDI in multi-brand 
retail. 
• Foreign investors are likely to bring in efficiencies, they are likely to 
invest in logistics such as warehouses and cold storages . 
• Direct procurement from farmers will result in higher prices for the 
farmer and lower ones for the consumer 
National Food Security 
bill 
•Under the proposed National Food Security Bill, government 
guarantees beneficiaries a prescribed quantity of food grains at 
heavily-discounted prices 
•The government is likely to invest more on the storage 
infrastructure, which will reduce wastage and thereby lead to lower 
prices

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Agricultural schemes ppt

  • 1. AGRICULTURAL SECTOR IN INDIA Presented by:- Padma Pandey Archana MSc. Previous 2014
  • 2. Agriculture continues to play a major role in Indian Economy It is generally described as the backbone of Indian economy and also plays a significant role in the growth of socio-economic sector in India. 70% of the population is still directly or indirectly dependent on agriculture Green revolution transformed India from a food deficient stage to a surplus food market India is among the 15 leading exporters of agricultural products in the world, country accounted for 1.7 percent of global agricultural trade in 2010
  • 3. Continue…  On the eve of India's independence in 1947, Indian agriculture was characterized by feudal land relations and primitive technology, and the resultant low productivity per hectare.  As a consequence, rural India presented a picture of mass poverty and widespread unemployment or under-employment.  Therefore, the first task of the government in the immediate post-independence period was to initiate a growth process in the modernization of agriculture, both in terms of technological and institutional changes.
  • 4. AGRICULTURAL STATES AND THEIR CONTRIBUTION
  • 6. BUDGET FY 14 ; AGRICULTRE REMAINS PRIORITY In the Union Budget FY14, the Government of India allocated USD145.8 billion for agriculture credit, an increase of USD26.04 billion compared to FY13 Funds allotted to the Agriculture Ministry increased 22 per cent to USD5.63 billion; of this, USD711.4 million is planned for farm research In Bringing Green Revolution to Eastern India (BGREI), the government allotted USD 208.3 million to improve agricultural production in Eastern states National Food Security Mission, a scheme to bridge yields gap of major crops, has been provided USD468.7 million
  • 7. ROLE OF AGRICULTURE IN INDIAN ECONOMY 1. Share in National income:- agriculture contributed two-thirds of national income. 2. Largest employment providing sector:- In 1951, 69.5% of the working population was engaged in agriculture. • this percentage fell to 66.9% in 1991 and to 56.7% in 2011 and in 2004-05 3. Providing of food surplus to the expanding population:- domestic demand for food grains was placed at 207 million tones in 2004-05, about 234.4 million tones in 2011-2012 in 11th year plan. And this is expected to increase further to 280.6 million tones by 2020-21. 4. Contribution to capital formation:- unless the rate of capital formation increases to a sufficiently high degree, economic development cannot be aceived.
  • 8. Share in National income Largest ROLE OF AGRICULTURE IN INDIAN ECONOMY employmen t providing sector Contributi on to capital Providing of formation food surplus to the expanding population Importance in internationa l trade Providing raw material to industries.
  • 9. Continue… • Since agriculture happens to be the largest industry in developing countries like India, it can must play a important role in pushing up the rate of capital formation. 5. Providing raw material to industries. 6. Market for industrial products:- increases rural purchasing power is a valuable stimulus to industrial development 7. Importance in international trade:- the three agriculture based exorts of India- cotton textiles, jute and tea– accounted for more than 50% of export earning of the country
  • 10. SCHMES AND PROGRAMMES • RKVY (Rashtriya Krishi Vikas Yojana) • National Food Security Mission (NFSM) • KCC (Kisan Credit Card)
  • 11.
  • 12. RKVY (Rashtriya Krishi Vikas Yojana) • Was launched in 2007-08 with a outlay of Rs 27447 cores In the XI Five year Plan for incentivizing states to enhance public investment, for taking up 5768 projects across various sectors • (RKVY) was launched in the XIth Plan against a backdrop of faltering agriculture growth in the previous decades • It was designed as a State Plan Scheme with complete flexibility to the States to choose projects specifically tailored to their conditions for generating growth in agriculture and allied sectors. • In the XII Plan, the entire RKVY budget is proposed to be divided in three streams viz. Production Growth, Infrastructure & Assets, and Special schemes of national importance in the ratio of 40:40:20.
  • 13. RKVY strategic objectives RKVY has two strategic objectives :- • first, to encourage States to allocate more funds for agriculture and allied sectors and • second, to incentivize States to generate additional growth in agriculture and allied sectors by better planning and undertaking appropriate growth oriented projects. • As a result of which, States' allocation to agriculture and allied sectors rose from Rs.8770 crore in the base year of 2006-07, to Rs.29413 crore in the year 2011-12
  • 14. Various initiatives were taken to improve the agriculture sector • Green Revolution (1968) • Ever-Green Revolution (1996) • Blue Revolution (water, fish) • White Revolution (Milk) • Yellow Revolution (flower, edible) • ICT Revolution
  • 15. Bringing Green Revolution in Eastern India (BGREI) •Scheme was launched in 2011, under RKVY, to strategically increase in productivity in Eastern states •BGREI actively promoted various technological interventions and emphasized on collaborative work among institutions, officials and farmers
  • 16. OBJECTIVES OF (BGREI) :- • Yield maximization of rice and wheat per unit area by improving agronomy • Water harvesting and conservation; and • Water utilization (recycling of conserved water-surface water as well as groundwater.
  • 17. NATIONAL FOOD SECURITY MISSION (NFSM) • National Food Security Mission (NFSM) :-Is a crop Development scheme of the Government of India . • Launched in august 2007 with an approved outlay of rs. 4,883 core for period of 2007 to 2012. • Aims at restoring soil health and achieving additional production of 10,8 and 2 million tones of rice, wheat and pulses, respectively by the end of 2011-12.
  • 18. Continue… • NFSM is presently under implementation in 482 Districts of 19 States of the country with a view to enhance ,the production of Rice, Wheat and Pulses • through area expansion and •productivity enhancement; •restoring soil fertility and • productivity; •creating employment opportunities; and •enhancing farm level economy to restore confidence of farmers.
  • 19. Strategies of NFSM strategy of the mission is to promote and extend :- • Improved technologies i.e., seed, micronutrients, soil amendments, Integrated Pest Management, Farm Machinery and • Resource conservation technologies along with capacity building of farmers with effective monitoring • Better management in the high potential districts in order to bridge the yield gaps • During the 12th Plan, it is proposed to include coarse cereals as well in the Mission. • Emphasis would be on promotion of technologies adopting cropping system approach in identified clusters
  • 20. KCC (Kisan Credit Card) • To facilititate access to short term credit to farmers. • Scheme was introduced in in 1998-99. • The scheme has gained popularity and its implementation has been taken up by 27 Cooperative Banks ad 196 Regional Rural Banks throughout the country. • About 10.78 crore KCC’s had been issued up to October 2011 • KCC has received wide acceptability amongst bankers and farmers.
  • 21. Continuee… • Govt. of India, revised operational guidelines on KCC were issued by NABARD to Cooperative Banks, RRBs and by RBI to Commercial Banks in the year 2012. • Banks were advised to devise suitable strategies to implement the scheme in a time bound manner. Improvements in the guidelines over the earlier KCC scheme are as under: • Paper card (pass book) to Plastic card - KCC in the form of ATM enabled Debit card • Wider delivery channels : Operations through Branch/Cheque facility/BCs/ATM (debit card)/POS/Mobile handsets • More clarity in assessing credit needs (inclusion of post harvest / household/consumption needs up to 10% + maintenance expenses up to 20%) • One time documentation at first availment and thereafter simple declaration from second year • Moving towards accessing online land record and Creation of charge.
  • 22. INITIATIVES THAT WILL FURTHER PROP UP THE SECTOR FDI in multi-brand Retail • The government has allowed up to 51 per cent FDI in multi-brand retail. • Foreign investors are likely to bring in efficiencies, they are likely to invest in logistics such as warehouses and cold storages . • Direct procurement from farmers will result in higher prices for the farmer and lower ones for the consumer National Food Security bill •Under the proposed National Food Security Bill, government guarantees beneficiaries a prescribed quantity of food grains at heavily-discounted prices •The government is likely to invest more on the storage infrastructure, which will reduce wastage and thereby lead to lower prices