YEAR END REVIEW-2003

After last year’s severe drought, favourable monsoon has brought cheer to the agriculture sector this year. The failure of monsoon saw the foodgrains production during 2002-03 falling to an estimated 182.57 million tonnes from a record level of 212. 02 million tonnes during the previous year. However, the revival of prospects this year is already evident in the foodgrains production during the Kharif season, estimated at 108.45 million tonnes. The production of oilseeds has been estimated at 15.08 million tones as against 9.22 million tonnes in the previous year.

During 2003, the Agriculture Ministry took a number of steps to increase the production and productivity and also for the welfare of farmers. Some of the important initiatives are as follows:

REDUCTION IN INTEREST RATE ON FARM LOANS

Farmers now will have to pay a maximum interest rate of 9% on bank loans up to Rs.50,000 for each crop. Earlier, they had to pay a rate of 14 to 18%. Emphasis has been laid on providing timely and adequate credit to farmers for increasing agricultural production and productivity.

FARM INCOME INSURANCE PROGRAMME

A pilot project of the Farm Income Insurance Programme has been launched during the 2003-04 Rabi season. It covers the two critical components of the farmer’s income, namely yield and price through a single policy instrument. The minimum guaranteed income is determined by using the average yield of the last seven years and the minimum support price.

MINIMUM SUPPORT PRICES:

While fixing the minimum support prices of various Kharif and Rabi crops, a conscious effort was made to offer relatively higher increase in pulses and oilseeds vis-à-vis rice and wheat. This was considered necessary, as despite some efforts at diversification in the past, no significant increase in the area under pulses and oilseeds vis-à-vis the traditional rice- wheat system took place. While fixing the MSP for various Rabi pulses and oilseeds, a substantial increase ranging from Rs.180 to Rs.270 was effected.

PACKAGE FOR SUGARCANE FARMERS:

The Government announced a one time assistance of Rs.678.06 crore to State Governments to mitigate hardships of the sugarcane farmers who have not been paid sugarcane arrears for the 2002-03 season by private sector sugarcane factories in Uttar Pradesh, Uttaranchal, Bihar, Punjab and Haryana. The assistance is in the nature of soft loans at a concessional rate of interest of 4 per cent with an initial moratorium of 3 years and repayable within three years thereafter. The assistance is intended to clear the arrears arising out of the difference between the Statutory Minimum Price and the State Advised Price.

NATIONAL HORTICULTURE MISSION

The Prime Minister announced the launching of the National Horticulture Mission in his Independence Day address to the nation this year. The Mission aims at giving impetus to cultivation of fruits, vegetables, flowers, spices, etc. The target is to double the horticulture production in the country by 2010.

The on-going centrally sponsored scheme of “Technology Mission for Integrated Development of Horticulture in the North-Eastern States including Sikkim” has been extended to Jammu and Kashmir, Uttaranchal and Himachal Pradesh.

MODEL LAW ON AGRICULTURAL MARKETING:

A model law on agricultural marketing has been formulated. It has been sent to the States for follow up action. The main features of the Act are as follows:

•  Legal persons, growers and local authorities permitted to establish new markets in any area.

•  No compulsion of growers to sell their produce through the existing regulated markets.

•  Establishment of direct purchase centres and Consumers/Farmers Markets for direct sale.

•  A separate chapter to regulate and promote contract farming arrangements in the country.

•  Prohibition of a commission agency in any transaction of agricultural commodities with producers.

•  Constitution of State Marketing Standards Bureau for promotion of grading, standardization and quality certification of agricultural produce.

PROJECT ON TRANSGENICS:

A network project on transgenics covering 12 crops has been prepared. The proposed research project of the Indian Council of Agricultural Research (ICAR) will cover maize, pigeonpea, chickpea, soyabean, cotton, brassica, tomato, brinjal, banana, papaya, potato and cassava. The proposed project would focus on specially targeted trait improvement such as resistance to insect pests, fungal diseases and viral diseases, tolerance to abiotic stresses and extended shelf life in each of the 12 crops.

CALL CENTRE SCHEME

A Call Centre Scheme has been mooted to enable farmers in any part of the country to obtain any agricultural information required by them. The facility will be available free of cost. The scheme is likely to be introduced in January, 2004.

AGRI-CHANNEL

The work for launching a Radio and Television channel for dissemination of knowledge is in an advanced stage. The Channel is likely to be launched in January, 2004.

IMPORT OF MILK POWDER:

The National Dairy Development Board placed orders for import of about 9460 MTs of milk powder under the tarrif rate quota. The need for the import arose due to acute shortage of milk resulting from drought conditions prevailing during the last three years in various states, delayed and poor calving of milch animals and shortage of feed and fodder. The total cost of imported powder was about Rs.78 crore on CIF basis.

DROUGHT RELIEF:

The country faced a severe drought last year. The centre allocated 87.36 lakh MTs of foodgrains free of cost and provided a cash assistance of Rs.4214.95 crore under the Calamity Relief Fund (CRF) and the National Calamity Contingency Fund (NCCF) to the drought affected States. Massive arrangements were made for carrying drinking water and fodder to the drought hit areas.

FAO CONFERENCE:

An Indian delegation led by the Agriculture Minister, Shri Rajnath Singh attended the 32nd session of the FAO Conference and 125th and 126th Session of the FAO Council held in Rome from November 26 to December 11,2003. At the Conference, India asked the developed countries to effect substantial and real reduction in the domestic support provided by them to their agriculture and also called for a genuine differential treatment to the developing countries to enable them to address their special concerns.

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