ppt on special agricultural zones vijay rajmohan

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Policy Paper Presentation06.07.2016Institute of Secretariat Training and Management, New DelhiSpecial Agricultural zones A Cluster based approach to improve Farmers Incomes

Vijay Rajmohan, Director (Extension), DAC&FW&G.Srinivasan, O.S.Ashok, B.M.Sharma, V.S.Yadav, Deputy Secretaries to Government of India.1

Overview49% of population and 70% of rural households dependent on Agriculture. Real incomes of farmers stagnating vis-a-vis increased prices of other commodities.Productivity low compared to developed as well as some of the developing countries. Not getting investments resulting in little job creation.Government plans to double the income of farmers by 2022.2

Importance of Agriculture Source: The Hindu, 2015

Source: Priya Pandey3

Comparative Sector-wise Contribution in GDP- India with other Countries

4Source: Extension Division, DAC

GDP & Sector-wise Employment Trends (UPS) during 2011-12Source: Employment: NSSO different round reports & CSO (Economic Survey 2014-15, Service Sector, Pg. 113); GDP CSO, 31.10.2014 Data book for PC, 22.12.2014 Pg. 3.


Sector-wise Employment Trends (UPS)

*UPS = Usual Principal StatusSource: NSSO different round reports & CSO (Economic Survey 2014-15, Service Sector, Pg. No. 113)


Trends in Workforce Engaged as Cultivator & Agril. Labourers(Millions)7Source: Extension Division, DAC

Existing Policy FrameworkCentral and State Governments providing initiatives for improving agriculture and allied industries.Service Tax, Income Tax deductions allowed for agriculture related services.Customs Duty exemption for importing certain Agriculture related machinery and storage, processing facilities.Excise benefits available for machinery in food processing, vegetables & fruits, milk and milk products.Grants and subsidy schemes in areas of Agriculture, Horticulture, Animal Husbandry and Fisheries.8

Constraints in existing policy frameworkAverage income of farm household very low - estimated at Rs 6,426 per month. Half of wheat and rice grown for self consumption.Majority of produce sold to private traders and not getting government fixed prices.Small farmers rely on moneylenders for their loans.Unless income of farmers increased, their condition will not improve.Farming losing status

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Household Income from Farming

10Source: The Hindu, 2015

The Solution: Special Agricultural ZonesA cluster based approach in which Agricultural areas are grouped based on identified criteriaCriteria: Crops, Farm practices, Infrastructure, Natural resources, Ecological zones etc,.Focus interventions : Extension activities, Subsidies, Exemptions from local laws, Tax concessions, Relaxed land leasing norms, Investment procedures.Change in Trend of crops: From traditional to high value crops.

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High Value Crops Catching-up

(As a percentage of Agriculture GDP)12Source: Extension Division, DAC

Out of 50% with in agriculture sector, we can faciliatite diversifcation, moving away from agri to horti, anima husbandry dairy and fisheriesBut overall number of workforce will still decrease so we can request horticulture division an dDAHDF if they can make compreehnsive schems along with area expansion

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Special Agricultural Zones - the benefitsProtection of cultivable Lands, ensure Soil fertilityEnsure optimum utilization of water resourcesImproving Exports through improved quality of products Would help creation of Agro based Industries.To bring in Investments-domestic and foreign.Focus on research, extension & skill development interventions feasible.13

Experiences: India and InternationalUttarakhand the first State to try the concept.Sikkim a role model of a SAZ for organic farming. Japan, China, Taiwan, South Korea experimented with special zones for Agriculture. Sri Lanka has created a 3,000 acre Special Agricultural Zone in its eastern province.14

Conclusion..Effectiveness: Focussed interventions through special/uniform clusters.Efficiency: Uniformity, ease of reach to improve efficiency of Government interventions. Economies of scale. Branding of products. Attracting investments & technologies.Equity: Farmers in the clusters to benefit, irrespective of socio-economic backgrounds.15

Conclusion Feasibility: Co-opting State and Local Governments would improve the viability of the approach. No additional funds, the existing funds of various Central and State Ministries and funds of the local bodies would be pooled and utilized in a focused manner.Flexibility: Scaling up/ increasing the clusters to cover the entire country in due course of time.Sustainability: Sustainable due to nil land acquisition, nil additional fund allocation, special attention to inputs, efficient use of water, encouragement to Organic farming, improved quality, brand value & marketing.16

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Thank You!17

Chart116.1729.554.4940.550.59.4933.4857.0313.742.943.31733.2549.7515.3331.2853.391.620.877.6

AgricultureIndustryServices

Sheet1CountryAgricultureIndustryServicesIndia16.1729.554.4China940.550.5Phillipines9.4933.4857.03Indonesia13.742.943.3Vietnam1733.2549.75Bangladesh15.3331.2853.39USA1.620.877.6

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Chart161.11622.954.519.52647.124.428.5


Sheet1CountryAgricultureIndustryServicesIndia16.1729.554.4China940.550.5Phillipines9.4933.4857.03Indonesia13.742.943.3Vietnam1733.2549.75Bangladesh15.3331.2853.39USA1.620.877.6Sector1993-942004-052011-12Agriculture61.154.547.1Industry1619.524.4Services22.92628.5

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ppt on special agricultural zones vijay rajmohan

Economy & Finance