Industrial
Promotion Policies - Central Government
National Agriculture Policy
2000
Agriculture is a way of life, a tradition,
which, for centuries, has shaped the thought, the outlook,
the culture and the economic life of the people of India.
Agriculture, therefore, is and will continue to be central
to all strategies for planned socio-economic development
of the country. Rapid growth of agriculture is essential
not only to achieve self-reliance at national level
but also for household food security and to bring about
equity in distribution of income and wealth resulting
in rapid reduction in poverty levels.
Indian agriculture has, since Independence,
made rapid strides. In taking
the annual food grains production from 51 million tonnes
of the early fifties to 206 million tonnes at the turn
of the century, it has contributed significantly in
achieving self sufficiency in food and in avoiding food
shortages in our country. The pattern of growth of agriculture
has, however, brought in its wake, uneven development,
across regions and crops as also across different sections
of farming community and is characterized by low levels
of productivity and degradation of natural resources
in some areas. Capital inadequacy, lack of infrastructural
support and demand side constraints such as controls
on movement, storage and sale of agricultural products,
etc., have continued to affect the economic viability
of agriculture sector. Consequently, the growth of agriculture
has also tended to slacken during the nineties.
Agriculture
has also become a relatively unrewarding profession
due to generally unfavourable price regime and low value
addition, causing abandoning of farming and increasing
migration from rural areas. The situation is likely
to be exacerbated further in the wake of integration
of agricultural trade in the global system, unless immediate
corrective measures are taken.
Over 200 million
Indian farmers and farm workers have been the backbone
of India's agriculture. Despite having achieved national
food security the well being of the farming community
continues to be a matter of grave concern for the planners
and policy makers in the country. The establishment
of an agrarian economy which ensures food and nutrition
to India's billion people, raw materials for its expanding
industrial base and surpluses for exports, and a fair
and equitable reward system for the farming community
for the services they provide to the society, will be
the mainstay of reforms in the agriculture sector.
The National
Policy on Agriculture seeks to actualise the vast untapped
growth potential of Indian agriculture, strengthen rural
infrastructure to support faster agricultural development,
promote value addition, accelerate the growth of agro
business, create employment in rural areas, secure a
fair standard of living for the farmers and agricultural
workers and their families, discourage migration to
urban areas and face the challenges arising out of economic
liberalization and globalisation. Over the next two
decades, it aims to attain:
A growth
rate in excess of 4 per cent per annum in the agriculture
sector
Growth that
is based on efficient use of resources and conserves
our soil, water and bio-diversity;
Growth with
equity, i.e., growth which is widespread across regions
and farmers;
Growth that
is demand driven and caters to domestic markets and
maximises benefits from exports of agricultural products
in the face of the challenges arising from economic
liberalization and globalisation;
Growth that
is sustainable technologically, environmentally and
economically.
The policy will
seek to promote technically sound, economically viable,
environmentally non-degrading, and socially acceptable
use of country's natural resources - land, water and
genetic endowment to promote sustainable development
of agriculture. Measures will be taken to contain biotic
pressures on land and to control indiscriminate diversion
of agricultural lands for non-agricultural purposes.
The unutilized wastelands will be put to use for agriculture
and afforestation. Particular attention will be given
for increasing cropping intensity through multiple-cropping
and inter-cropping.
The Government
accords abiding importance to improving the quality
of the country's land and soil resources. Reclamation
of degraded and fallow lands as well as problem soils
will be given high priority to optimize their productive
use. Special emphasis will be laid on conserving soils
and enriching their fertility. Management of land resources
on watershed basis will receive special attention. Areas
of shifting cultivation will also receive particular
attention for their sustainable development. Integrated
and holistic development of rainfed areas will be promoted
by conservation of rain water by vegetative measures
on watershed basis and augmentation of biomass production
through agro and farm forestry with the involvement
of the watershed community. All spatial components of
a watershed, i.e. arable land, non-arable and drainage
lines will be treated as one geo-hydrological entity.
Management of grazing land will receive greater attention
for augmenting availability of animal feed and fodder.
A long-term perspective plan for sustainable rainfed
agriculture through watershed approach will be vigorously
pursued for development of two thirds of India's cropped
area which is dependent on rains.
Rational utilization
and conservation of the country's abundant water resources
will be promoted. Conjunctive use of surface and ground
water will receive highest priority. Special attention
will be focused on water quality and the problem of
receding ground-water levels in certain areas as a result
of over-exploitation of underground aquifers. Proper
on-farm management of water resources for the optimum
use of irrigation potential will be promoted. Use of
in situ moisture management techniques such as mulching
and use of micro overhead pressured irrigation systems
like drip and sprinkler and green house technology will
be encouraged for greater water use efficiency and improving
productivity, particularly of horticultural crops. Emphasis
will be placed on promotion of water harvesting structures
and suitable water conveyance systems in the hilly and
high rainfall areas for rectification of regional imbalances.
Participatory community irrigation management will be
encouraged.
Erosion and
narrowing of the base of India's plant and animal genetic
resources in the last few decades has been affecting
the food security of the country. Survey and evaluation
of genetic resources and safe conservation of both indigenous
and exogenously introduced genetic variability in crop
plants, animals and their wild relatives will receive
particular attention. The use of bio-technologies will
be promoted for evolving plants which consume less water,
are drought resistant, pest resistant, contain more
nutrition, give higher yields and are environmentally
safe. Conservation of bio-resources through their ex
situ preservation in Gene Banks, as also in situ
conservation in their natural habitats through bio-diversity
parks, etc., will receive a high priority to prevent
their extinction. Specific measures will also be taken
to conserve indigenous breeds facing extinction. There
will be a time bound programme to list, catalogue and
classify country's vast agro bio-diversity.
Sensitization
of the farming community with the environmental concerns
will receive high priority. Balanced and conjunctive
use of bio-mass, organic and inorganic fertilizers and
controlled use of agro chemicals through integrated
nutrients and pest management (INM & IPM) will be
promoted to achieve the sustainable increases in agricultural
production. A nation-wide programme for utilization
of rural and urban garbage, farm residues and organic
waste for organic matter repletion and pollution control
will be worked out.
Agro forestry
and social forestry are prime requisites for maintenance
of ecological balance and augmentation of bio-mass production
in the agricultural systems. Agro-forestry will receive
a major thrust for efficient nutrient cycling, nitrogen
fixation, organic matter addition and for improving
drainage. Farmers will be encouraged to take up farm/agro-forestry
for higher income generation by evolving technology,
extension and credit support packages and removing constraints
to development of agro and farm forestry. Involvement
of farmers and landless labourers will be sought in
the development of pastures/forestry programmes on public
wastelands by giving financial incentives and entitlements
to the usufructs of trees and pastures.
The history
and traditional knowledge of agriculture, particularly
of tribal communities, relating to organic farming and
preservation and processing of food for nutritional
and medicinal purposes is one of the oldest in the world.
Concerted efforts will be made to pool, distill and
evaluate traditional practices, knowledge and wisdom
and to harness them for sustainable agricultural growth.
Special efforts
will be made to raise the productivity and production
of crops to meet the increasing demand for food generated
by unabated demographic pressures and raw materials
for expanding agro-based industries. A regionally differentiated
strategy will be pursued, taking into account the agronomic,
climatic and environmental conditions to realize the
full growth potential of every region. Special attention
will be given to development of new crop varieties,
particularly of food crops, with higher nutritional
value through adoption of bio-technology particularly,
genetic modification, while addressing bio-safety concerns.
A major thrust
will be given to development of rainfed and irrigated
horticulture, floriculture, roots and tubers, plantation
crops, aromatic and medicinal plants, bee-keeping and
sericulture, for augmenting food supply, exports and
generating employment in the rural areas. Availability
of hybrid seeds and disease-free planting materials
of improved varieties, supported by network of regional
nurseries, tissue culture laboratories, seed farms will
be promoted to support systematic development of horticulture
having emphasis on increased production, post-harvest
management, precision farming, bio-control of pests
and quality regulation mechanism and exports.
Animal husbandry
and fisheries also generate wealth and employment in
the agriculture sector. Development of animal husbandry,
poultry, dairying and aqua-culture will receive a high
priority in the efforts for diversifying agriculture,
increasing animal protein availability in the food basket
and for generating exportable surpluses. A national
livestock breeding strategy will be evolved to meet
the requirements of milk, meat, egg and livestock products
and to enhance the role of draught animals as a source
of energy for farming operations and transport. Major
thrust will be on genetic upgradation of indigenous/native
cattle and buffaloes using proven semen and high quality
pedigreed bulls and by expanding artificial insemination
network to provide services at the farmer's doorstep.
Generation and
dissemination of appropriate technologies in the field
of animal production as also health care to enhance
production and productivity levels will be given greater
attention. Cultivation of fodder crops and fodder trees
will be encouraged to meet the feed and fodder requirements
and to improve animal nutrition and welfare. Priority
attention will also be given to improve the processing,
marketing and transport facilities, with emphasis on
modernization of abattoirs, carcass utilization and
value addition thereon. Since animal disease eradication
and quarantine is critical to exports, animal health
system will be strengthened and disease free zones created.
The involvement of co-operatives and the private sector
will be encouraged for development of animal husbandry,
poultry and dairy. Incentives for livestock and fisheries
production activities will be brought at par with incentives
for crop production.
An integrated
approach to marine and inland fisheries, designed to
promote sustainable aquaculture practices, will be adopted.
Biotechnological application in the field of genetics
and breeding, harmonal applications immunology and disease
control will receive particular attention for increased
aquaculture production. Development of sustainable technologies
for fin and shell fish culture as also pearl-culture,
their yield optimization, harvest and post-harvest operations,
mechanization of fishing boats, strengthening of infrastructure
for production of fish seed, berthing and landing facilities
for fishing vessels and development of marketing infrastructure
will be accorded high priority. Deep sea fishing industry
will be developed to take advantage of the vast potential
of country's exclusive economic zone.
A very high
priority will be accorded to evolving new location-specific
and economically viable improved varieties of agricultural
and horticultural crops, livestock species and aquaculture
as also conservation and judicious use of germplasm
and other biodiversity resources. The regionalization
of agricultural research, based on identified agro-climatic
zones, will be accorded high priority. Application of
frontier sciences like bio-technology, remote sensing
technologies, pre and post-harvest technologies, energy
saving technologies, technology for environmental protection
through national research system as well as proprietary
research will be encouraged. The endeavour will be to
build a well organized, efficient and result-oriented
agriculture research and education system to introduce
technological change in Indian agriculture. Upgradation
of agricultural education and its orientation towards
uniformity in education standards, women empowerment,
user-orientation, vocationalization and promotion of
excellence will be the hallmark of the new policy..
The research
and extension linkages will be strengthened to improve
quality and effectiveness of research and extension
system. The extension system will be broad based and
revitalized. Innovative and decentralized institutional
changes will be introduced to make the extension system
farmer-responsible and farmer-accountable. Role of Krishi
Vigyan Kendras (KVKs), Non-Governmental Organizations
(NGOs), Farmers Organizations, Co-operatives, corporate
sector and para-technicians in agricultural extension
will be encouraged for organizing demand driven production
systems. Development of human resources through capacity
building and skill upgradation of public extension functionaries
and other extension functionaries will be accorded a
high priority. The Government will endeavour to move
towards a regime of financial sustainability of extension
services through affecting in a phased manner, a more
realistic cost recovery of extension services and inputs,
while simultaneously safeguarding the interests of the
poor and the vulnerable groups.
Mainstreaming
gender concerns in agriculture will receive particular
attention. Appropriate structural, functional and institutional
measures will be initiated to empower women and build
their capabilities and improve their access to inputs,
technology and other farming resources.
Adequate and
timely supply of quality inputs such as seeds, fertilizers,
plant protection chemicals, bio-pesticides, agricultural
machinery and credit at reasonable rates to farmers
will be the endeavour of the Government. Soil testing
and quality testing of fertilizers and seeds will be
ensured and supply of spurious inputs will be checked.
Balanced and optimum use of fertilizers will be promoted
together with use of organic manures & bio-fertilizers
to optimize the efficiency of nutrient use.
Development,
production and distribution of improved varieties of
seeds and planting materials and strengthening and expansion
of seed and plant certification system with private
sector participation will receive a high priority. A
National Seed Grid will be established to ensure supply
of seeds especially to areas affected by natural calamities.
The National Seeds Corporation (NSC) and State Farms
Corporation of India (SFCI) will be restructured for
efficient utilization of investment and manpower.
Protection to
plant varieties through a sui generis legislation,
will be granted to encourage research and breeding of
new varieties particularly in the private sector in
line with India's obligations under TRIPS Agreement.
The farmers will, however, be allowed their traditional
rights to save, use, exchange, share and sell their
farm saved seeds except as branded seeds of protected
varieties for commercial purpose. The interests of the
researchers will also be safeguarded in carrying out
research on proprietary varieties to develop new varieties.
Integrated pest
management and use of biotic agents in order to minimize
the indiscriminate and injudicious use of chemical pesticides
will be the cardinal principle covering plant protection.
Selective and eco-friendly farm mechanization through
appropriate technology will be promoted, with special
reference to rainfed farming to reduce arduous work
and to make agriculture efficient and competitive as
also to increase crop productivity.
The Government
will endeavour to create a favourable economic environment
for increasing capital formation and farmer's own investments
by removal of distortions in the incentive regime for
agriculture, improving the terms of trade with manufacturing
sectors and bringing about external and domestic market
reforms, backed by rationalization of domestic tax structure.
It will seek to bestow on the agriculture sector in
as many respects as possible benefits similar to those
obtaining in the manufacturing sector, such as easy
availability of credit and other inputs, and infrastructure
facilities for development of agri-business industries
and development of effective delivery systems and freeing
movement of agro produce.
Consequent upon
dismantling of Quantitative Restrictions on imports
as per WTO Agreement on Agriculture, Commodity-wise
strategies and arrangements for protecting the grower
from adverse impact of undue price fluctuations in world
markets and for promoting exports will be formulated.
Apart from price competition, other aspects of marketing
such as quality, choice, health and bio-safety will
be promoted. Exports of horticultural produce and marine
products will receive particular emphasis. A two-fold
long term strategy of diversification of agricultural
produce and value addition enabling the production system
to respond to external environment and creating export
demand for the commodities produced in the country will
be evolved with a view to providing the farmers incremental
income from export earnings. A favourable economic environment
and supportive public management system will be created
for promotion of agricultural exports. Quarantine, both
of exports and imports, will be given particular attention
so that Indian agriculture is protected from the ingress
of exotic pests and diseases.
In order to
protect the interest of farmers in context of removal
of Quantitative Restrictions, continuous monitoring
of international prices will be undertaken and appropriate
tariffs protection will be provided. Import duties on
manufactured commodities used in agriculture will be
rationalized. The domestic agricultural market will
be liberalized and all controls and regulations hindering
increase in farmers' income will be reviewed and abolished
to ensure that agriculturists receive prices commensurate
with their efforts, investment. Restrictions on the
movement of agricultural commodities throughout the
country will be progressively dismantled.
The structure
of taxes on food grains and other commercial crops will
be reviewed and rationalized. Similarly, the excise
duty on materials such as farm machinery and implements,
fertilizers, etc., used as inputs in agricultural production,
post harvest storage and processing will be reviewed.
Appropriate measures will be adopted to ensure that
agriculturists by and large remain outside the regulatory
and tax collection systems. Farmers will be exempted
from payment of capital gains tax on compulsory acquisition
of agricultural land.
The Agriculture
sector has been starved of capital. There has been a
decline in the public sector investment in the agriculture
sector. Public investment for narrowing regional imbalances,
accelerating development of supportive infrastructure
for agriculture and rural development particularly rural
connectivity will be stepped up. A time-bound strategy
for rationalisation and transparent pricing of inputs
will be formulated to encourage judicious input use
and to generate resources for agriculture. Input subsidy
reforms will be pursued as a combination of price and
institutional reforms to cut down costs of these inputs
for agriculture. Resource allocation regime will be
reviewed with a view to re-channelizing the available
resources from support measures towards asset formation
in rural sector.
A conducive
climate will be created through a favourable price and
trade regime to promote farmers' own investments as
also investments by industries producing inputs for
agriculture and agro based industries. Private sector
investments in agriculture will also be encouraged more
particularly in areas like agricultural research, human
resource development, post-harvest management and marketing.
Rural electrification
will be given a high priority as a prime mover for agricultural
development. The quality and availability of electricity
supply will be improved and the demand of the agriculture
sector will be met adequately in a reliable and cost
effective manner. The use of new and renewable sources
of energy for irrigation and other agricultural purposes
will also be encouraged.
Bridging the
gap between irrigation potential created and utilized,
completion of all on-going projects, restoration and
modernization of irrigation infrastructure including
drainage, evolving and implementing an integrated plan
of augmentation and management of national water resources
will receive special attention for augmenting the availability
and use of irrigation water.
Emphasis will
be laid on development of marketing infrastructure and
techniques of preservation, storage and transportation
with a view to reducing post-harvest losses and ensuring
a better return to the grower. The weekly periodic markets
under the direct control of panchayat raj institutions
will be upgraded and strengthened. Direct marketing
and pledge financing will be promoted. Producers markets
on the lines of Ryatu Bazars will be encouraged through
out the width and the breadth of the country. Storage
facilities for different kinds of agricultural products
will be created in the production areas or nearby places
particularly in the rural areas so that the farmers
can transport their produce to these places immediately
after harvest in shortest possible time. The establishment
of cold chains, provision of pre cooling facilities
to farmers as a service and cold storage in the terminal
markets and improving the retail marketing arrangements
in urban areas will be given priority. Upgradation and
dissemination of market intelligence will receive particular
attention.
Setting up of
agro-processing units in the producing areas to reduce
wastage, especially of horticultural produce, increased
value addition and creation of off-farm employment in
rural areas will be encouraged. Collaboration between
the producer co-operatives and the corporate sector
will be encouraged to promote agro-processing industry.
An inter-active coupling between technology, economy,
environment and society will be promoted for speedy
development of food and agro-processing industries and
build up a substantial base for production of value
added agro-products for domestic and export markets
with a strong emphasis on food safety and quality. The
Small
Farmers Agro Business Consortium (SFAC)
will be energized to cater to the needs of farmer entrepreneurs
and promote public and private investments in agri-business.
Indian agriculture
is characterized by pre-dominance of small and marginal
farmers. Institutional reforms will be so pursued as
to channelize their energies for achieving greater productivity
and production. The approach to rural development and
land reforms will focus on the following areas:
Consolidation
of holdings all over the country on the pattern of
north western States.
Redistribution
of ceiling surplus lands and waste lands among the
landless farmers, unemployed youth with initial start
up capital;
Tenancy reforms
to recognize the rights of the tenants and share croppers;
Development
of lease markets for increasing the size of the holdings
by making legal provisions for giving private lands
on lease for cultivation and agri business;
Updating
and improvement of land records, computerization and
issue of land pass-books to the farmers; and
Recognition of women's rights in land.
The rural poor
will be increasingly involved in the implementation
of land reforms with the help of Panchayati Raj Institutions,
Voluntary Groups, Social Activists and Community Leaders.
Private sector
participation will be promoted through contract farming
and land leasing arrangements to allow accelerated technology
transfer, capital inflow and assured markets for crop
production, especially of oilseeds, cotton and horticultural
crops.
Progressive
institutionalization of rural and farm credit will be
continued for providing timely and adequate credit to
farmers. The rural credit institutions will be geared
to promote savings, investments and risk management.
Particular attention will be paid to removal of distortions
in the priority sector lending by Commercial Banks for
agriculture and rural sectors. Special measures will
be taken for revamping of co-operatives to remove the
institutional and financial weaknesses and evolving
simplified procedure for sanction and disbursement of
agriculture credit. The endeavour will be to ensure
distribution equity in the disbursement of credit. Micro-credit
will be promoted as an effective tool for alleviating
poverty. Self Help Group - Bank linkage system, suited
to Indian rural sector, will be developed as a supplementary
mechanism for bringing the rural poor into the formal
banking system, thereby improving banks outreach and
the credit flows to the poor in an effective and sustainable
manner.
The basic support
to agriculture has been provided by the co-operative
sector assiduously built over the years. The Government
will provide active support for the promotion of co-operative
form of enterprise and ensure greater autonomy and operational
freedom to them to improve their functioning. The thrust
will be on:
Structural
reforms for promoting greater efficiency and viability
by freeing them from excessive bureaucratic control
and political interference;
Creation
of infrastructure and human resource development;
Improvement
in financial viability and organizational sustainability
of co-operatives;
Democratisation
of management and increased professionalism in their
operations; and
Creating
a viable inter-face with other grass-root Organizations.
The Legislative
and regulatory framework will be appropriately amended
and strengthened to achieve these objectives.
Despite technological
and economic advancements, the condition of farmers
continues to be unstable due to natural calamities and
price fluctuations. National Agriculture Insurance Scheme
covering all farmers and all crops throughout the country
with built in provisions for insulating farmers from
financial distress caused by natural disasters and making
agriculture financially viable will be made more farmer
specific and effective. Endeavour will be made to provide
a package insurance policy for the farmers, right from
sowing of the crops to post-harvest operations, including
market fluctuations in the prices of agricultural produce.
In order to
reduce risk in agriculture and impart greater resilience
to Indian agriculture against droughts and floods, efforts
will be made for achieving greater flood proofing of
flood prone agriculture and drought proofing of rainfed
agriculture for protecting the farmers from vagaries
of nature. For this purpose, contingency agriculture
planning, development of drought and flood resistant
crop varieties, watershed development programmes, drought
prone areas and desert development programmes and rural
infrastructure development programmes will receive particular
attention.
The Central
Government will continue to discharge its responsibility
to ensure remunerative prices for agricultural produce
through announcement of Minimum Support Prices policy
for major agricultural commodities. The food, nutrition
and other domestic and exports requirements of the country
will be kept in view while determining the support prices
of different commodities. The price structure and trade
mechanism will be continuously reviewed to ensure a
favourable economic environment for the agriculture
sector and to bring about an equitable balance between
the rural and the urban incomes. The methodology used
by the Commission
on Agricultural Costs & Prices (CACP) in arriving
at estimates of costs of production will be periodically
reviewed. The price structure of both inputs and outputs
will be monitored to ensure higher returns to the farmers
and bring about cost effectiveness throughout the economy.
Domestic market prices will be closely monitored to
prevent distress sales by the farmers. Public and co-operative
agencies undertaking marketing operations will be strengthened.
The Government
will enlarge the coverage of futures markets to minimize
the wide fluctuations in commodity prices as also for
hedging their risks. The endeavour will be to cover
all important agricultural products under futures trading
in course of time.
Effective implementation
of policy initiatives will call for comprehensive reforms
in the management of agriculture by the Central and
the State Governments. The Central Government will supplement/complement
the State Governments' efforts through regionally differentiated
Work Plans, comprising crop/area/target group specific
interventions, formulated in an inter-active mode and
implemented in a spirit of partnership with the States.
The Central Government will move away from schematic
approach to Macro-Management mode and assume a role
of advocacy, articulation and facilitation to help the
States in their efforts towards achieving accelerated
agricultural development.
The Government
will focus on quality aspects at all stages of farm
operations from sowing to primary processing. The quality
of inputs and other support services to farmers will
be improved. Quality consciousness amongst farmers and
agro processors will be created. Grading and standardization
of agricultural products will be promoted for export
enhancement. Application of science and technology in
agriculture will be promoted through a regular system
of interface between S & T institutions and the
users/potential users, to make the sector globally competitive.
The database
for the agriculture sector will be strengthened to ensure
greater reliability of estimates and forecasting which
will help in the process of planning and policy making.
Efforts will be made to significantly improve and harness
latest remote sensing and information technology to
capture data, collate it, add value and disseminate
it to appropriate destinations for managing the risk
and in accelerating the growth process. The objective
will be to engage in a meaningful continuous dialogue
with the external environment in the changing scenario
and to have on-line and real time system of 'Agriculture
on line' capacity to analyze the signals emanating from
the farms and the markets for the benefit of the farmers.
The Government
of India trust that this Statement of National Agriculture
Policy will receive the fullest support of all sections
of the people and lead to sustainable development of
agriculture, create gainful employment on a self sustaining
basis in rural areas, raise standards of living for
the farming communities, preserve environment and serve
as a vehicle for building a resurgent national economy.
