CHAPTER - III

REVIEW OF AGRICULTURAL POLICIES IN INDIA AND KARNATAKA

3.1 INTRODUCTION

Policy is a Government agenda for the development of particular sector. Agricultural

policies represent a set of mandatory regulations, designed to achieve certain public goals
(Oskam et al 2011). Agriculture Policy formulation in India is very complex because
agriculture is a state subject. But some of the related subjects are in the centre list. The state
policies have to be formulated in accordance with the national agenda. The present chapter
traces the formulation of agriculture policy in India since independence. Since the decisions
of the farmers are influenced by the changes in the input prices and output prices, agriculture
price policy and fertilizer policies were also included in the review. Agricultural policies in
India and Karnataka is analyzed in this chapter from, 1947 to 1999 some committees
appointed to attempt making agricultural policies, National Agricultural policy 2000,
Karnataka state agriculture policy 1995, Karnataka state policy on organic farming 2004,
Karnataka state agriculture policy 2006, National Farmer Policy 2007, Integrated
agribusiness development policy 2011, Karnataka agriculture marketing policy 2013, Input
policies that means subsidies on irrigation, Power, fertilizer, Credit Policy for Agriculture,
Price Policy and Output policy like minimum support price for various commodities, and
Finally the Fertilizer Policy in India.

Policy making in agriculture is set with several difficulties. The following are some of
the problems in making agricultural policy. First, agriculture is an unorganized sector activity
and therefore policy responses could not be predicted priori with objective probabilities.
Second, the information flow to agricultural sector is not as quick as it takes place in other
sectors. The information asymmetry poses problems in predicting outcomes. Climatic
differences and their influence on agriculture is the third problem. The fourth issue is uneven
distribution of land and assets in the sector. Apart from these above, the sector has a strong
link with consumers and other industries. The aggregate growth of the economy of any
country is sensitive to the fluctuations in this sector. Therefore, the impact of agricultural
policies in India needs to be analyzed in conjecture with other policies.

The process of formulating and implementing agricultural policies in India is very

complex because several ministries, departments and institutions at both the centre and the

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state level are involved in the process. The Union Ministry of Agriculture, under the guidance
of the Planning Commission (presently NITI Ayoga), provides the broad guidelines for
agricultural policies. But the implementation and administration of agricultural policies
remain the responsibility of respective state governments. The allocation of funds to
agriculture is guided by the Planning Commission and is routed primarily through the
Ministry of Agriculture to various departments.

Agricultural policy comprises different components relating to agricultural

production, processing, marketing etc. Various agencies are involved in the implementation
of agricultural policy at various levels. Policies relating to agricultural production are the
responsibility of Ministry of Agriculture, horticulture, irrigation and power etc. On the other
hand price related policies involve ministries of commerce, processing and agricultural
marketing commodity boards, corporations like Cotton Corporation of India (CCI) etc. Credit
is one of the important agricultural inputs and RBI, NABARD, ministry of finance,
commercial banks, regional rural banks are involved in the implementation. Several central
and state agricultural research institutions and universities are involved in the knowledge
production and agricultural extension work. Therefore several agencies at the centre and state
are responsible for the implementation of various components of agricultural policy.

3.2 HISTORY OF AGRICULTURAL POLICY IN INDIA

India has been an agriculture based country. Though its share in the GDP has been
declining, still a sizable population is dependent on agriculture for the livelihoods. Since this
sector influences the lives of several people, attempts have been made since independence to
evolve appropriate agricultural policy which creates incentives for increased production. The
present section reviews the development of agricultural policy in India since independence
through five year plans.

Various committees have been constituted to review and suggest policies relating to
different aspects of agricultural sector like agricultural production, credit, processing,
marketing etc.

The first ever committee was Food Grains Policy Committee of 1943 constituted
under the chairmanship of Gregory. The committee, popularly known as Gregory Committee
(1943) was constituted mainly to focus on food availability, supplies, distribution and control
price because food availability situation in India worsened due to the Second World War and

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cessation of rice supplies from Burma. Immediately after attaining independence, government
faced severe food shortage problem due to lower yield levels and the problem of refugees.
Government appointed a committee under Thakurdas in 1947. The committee was also
known as Foodgrain Policy Committee (1947). Thakurdas committee was appointed to study
the food distribution aspects, the committee recommend to progressively decontrol food. The
main features of this policy were gradual withdrawal of control and removal restrictions on
movements of foodgrains. However this policy of decontrol could not be pursued due to
persistent shortage and large imports. Subsequently Maitra Committee (1950), Mehta
Committee(1957), Venkatappaiah committee (1966) were constituted. These three
committees were appointed to enquire into food problems and solve the issues. The reports of
these committees are important documents in the formulation of agricultural policy
subsequently. It is important to observe that all these committees equated food production
with agricultural development. Therefore they investigated the issues of food production and
made recommendations for improving food production. The first attempt for a comprehensive
agricultural policy came from High Powered Committee (1990).

“During the late eighties a committee was appointed to look into the problem of
agriculture. This report of the High Power Committee (1990), Chaired by Bhanu Pratap
Singh, made recommendations covering all major sectors of agricultural economy”.
(Deshpande and Prachitha, 2006) This committee provided a clear picture of agricultural
policy, and also this document was very comprehensive, dealing with agricultural policy in
the most needed form.

During 1999 agricultural policy document prepared by the Government under the
Prime Ministership of Shri H.D Devegowda; But due to instability of the government, policy
document could never make it to the floor of the house. After this there is no serious attempt
to made a agricultural policy up to announcement of National Agricultural Policy 2000.

Based on the recommendations made by the High Powered Committee several

discussions took place and the first draft of agricultural policy resolution was introduced
under the Prime Ministership of V.P Singh. But it is only in 2000 the first ever
comprehensive National Agricultural Policy was introduced in Loksabha and got its approval.

“It is observed that India never had a formal and comprehensive policy on the
agriculture in the five decades since Independence. Not that there were no pronouncements of
policy on Agriculture. In fact, there were a quite few: some on land redistribution, some on
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this or that specific input, infrastructure, on technology. Statement on food situation were
plenty: but the policies, or absence thereof, they contain concern supplies for that public
distribution system and only incidentally, production and productivity. A policy statement
defines the role of agriculture in the overall economy and its development is conspicuously
absent”. (GOI, 1990 quoted in Deshpande and Prachitha, 2006)

3.3 AGRICULTURAL SECTOR THROUGH FIVE YEAR PLANS

Though there is no comprehensive policy addressing agriculture sector, agriculture

sector was given importance in five year plans and programmes were introduced to promote
agriculture sector. This section reviews the programmes introduced during the five year
plans.

First Five Year Plan (1951-56)

Agriculture sector was given topmost priority in the first plan period. This plan
mainly concentrated on increasing the food production as there was severe food shortage in
India. About one third (31%) of the plan outlay was allocated to agriculture sector. Major
features of this plan were abolition of zamindari system, the launching the community
development programmes, Grow More Food campaign along with improvement in other
related fields like marketing, animal husbandry, soil conservation and fisheries. The
production of food grains increased from 54 million tones in 1950-51 to 65.8 million tones at
the end of the plan period.

Second Five Year Plan (1956-61)

During the second five year plan period priority was given to industrial sector. The
plan outlay for the agriculture sector was only 20%. Fixed target of food production during
this plan was 80.5 million tonnes, but the actual production was 79.7 million tonnes. There
was shortage in the production of all crops except sugarcane. Food grains were imported to
meet the shortage.

Third Five Year Plan (1961-66)

The main objective of this plan was to achieve self sufficiency in food grians and to
increase the agricultural production to meet the needs of industry and export. Accordingly the
plan gave higher priority to agriculture sector and irrigation than to industry development.
Specific programs like the Intensive Agricultural District Programme (IADP), and High
Yielding Varieties Programmes were introduced. Government popularized the HYV of wheat
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and rice developed in Mexico and Philippine respectively. This was popularly known as
Green Revolution. The plan targeted to increase overall agricultural production by 30%, but
the achievement were disappointing. Due to the drought condition in 1965-66, the production
increased by 10% only against the target of 30%.

With the experience of the third plan, the planning commission assigned greater
priority to agriculture in the succeeding plans. Originally fourth plan was drafted in 1966. It
was abandoned on account of economic disturbance like two years of drought, devaluation of
rupee and inflationary condition. Instead three annual plans were implemented between 1966-
69.

Three Annual Plans (1966-69)

During this period high priority was given to minor irrigation and this was followed
by adoption of a high yield variety programme to increase agriculture production and
productivity. During this period government set up Agricultural Price Commission to assure
minimum support price to farmers and the Food Corporation of India (FCI) for maintaining
buffer stock to overcome fluctuations in the supplies of food grains and their prices.

Fourth Five Year Plan (196-74)

Two important objectives relating to agriculture sector were set during this plan. The
first was providing the conditions necessary for a sustained increase of food production by
about 5% per annum over the decade of 1969-78. Secondly, was enabling a large section of
the rural population including small farmers in the dry areas and agricultural labourers to
participate in the process of agricultural development and share its benefit. The approach to
fourth plan emphasized the necessity to create favourable economic conditions for the
promotion of agriculture and systematic efforts to extend the application of science and
technology to improve agricultural practices. The allocation to agriculture was 23% of the
total plan outlay. However, the target was not achieved. The actual production of food grain
was 104.7 million tones in 1973-74 as against target increase of 129 million tones.

Fifth Five Year Plan (1974-79)

Fifth five year plan was introduced under severe economic crisis. It was proposed to
achieve the two objectives; removal of poverty and attainment of self reliance through
promotion of higher rate of growth, better distribution of income and a very significant step
up in the domestic rate of saving. During the fifth plan Rs 8080 crores, constituting nearly
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21% of the total plan outlay was allocated for agriculture and irrigation development. This
plan gave priority to the spread of High Yield Varieties cultivation, greater use of fertilizer,
pesticides and insecticides to increase agricultural production. This plan provided special
emphasis on small and marginal farmers, dry farming techniques, evolving of High Yield
Varieties (HYV) seeds for other crops, and for desert land reclamation. The fifth plan was
terminated at the end of fourth year in March 1978.

Sixth Five Year Plan (1979-83)

There were two sixth plans. The first was under the Janatha Party for the period 1978-
83 and the second was under Congress during 1980-85. From the sixth plan 1980-85 onwards
new impetus was given to agriculture with 24% of budget allocation. Agriculture sector grew
at an annual rate of 4.3% and foograin production increased to 152 metric tons and this was
named as second green revolution. This has spread into eastern and central states include
West Bengal, Bihar, Orissa, Madhya Pradesh, and eastern Uttar Pradesh.

Seventh Five Year Plan (1985-90)

This plan emphasized on policies and programs for rapid growth in food grains
production. Public sector plan outlay in seventh plan relating to agriculture was Rs.10.52
crores but actual spending was Rs. 12.79 crores. This plan gave more emphasis on specific
projects like Special Rice Production Programme in the Eastern Region, National Watershed
Programme for Rain Fed Agriculture, National Oilseeds Development Project, and Social
Forestry etc. The seventh five year plan got extended beyond its period by two years.
Therefore eighth plan was introduced only in 1992.

Eighth Five Year Plan (1992-97)

Eighth five year plan was introduced in the changed economic environment. New
Economic Policy (NEP) was introduced with stabilization and structural adjustment
measures. Liberalization, privatization and globalization are the main features of the New
Economic Policy 1991. On the lines of conditionalities of the International Monetary Fund
(IMF) and world bank, steps were taken towards reducing the role of the state and
encouraging active private sector participation. The same mood was reflected in the strategy
of the eighth plan in the form of attempts to promote private initiatives, participation of
NGOs and Panchayat Raj Institutions (PRI). This plan attempted to promote a regionally
more broad based pattern of agricultural growth. The salient feature of this plan was faster

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growth of the manufacturing and agriculture and allied sectors. The public sector outlay in
eighth plan related to agriculture was Rs. 22467 crores.

Ninth Five Year Plan (1997-2002)

The objectives of the 9th plan related to agriculture are as follows,

• Priority to agriculture and rural development with a view to generate adequate

production, employment and eradication of poverty.

• Ensuring food security and nutritional security for all, particularly the vulnerable
sections of the society.

• Promoting and developing people‟s participatory institutions like PRI, Co-operatives

and SHGs.

The ninth plan proposed to realize the targets through a regionally differentiated
strategy based on agronomic, climatic, and environment friendly conditions. For the first
time ninth plan developed agricultural strategy based on the broad regional characteristics
of the agro-economic situations as

• North western High Productivity Regions: The strategy is to promote diversification

and high value crops and to strengthen linkages with the agro processing industry and
exports and creation of basic infrastructure.

• Eastern Region with abundant water: The strategy is to exploit the productivity
potential of this region, bringing the yield to the levels of high productivity states of
Haryana and Punjab.

• Water-scare Region - Peninsular India and Rajsthan: Development of efficient water

harvesting and conservation methods and technologies, suitable irrigation packages
based on watershed approach and promoting appropriate farming systems.

• Ecologically Fragile Regions – including Himalaya and Desert Regions: The thrust
will be on the development of eco-friendly agriculture in these regions.

The much awaited National Agricultural Policy 2000 was announced during the ninth
plan period. This has changed the approach from the earlier scheme approach to macro
management approach. Several initiatives were taken during this plan in accordance with the
agricultural policy, 2000. Some of these are creation of a Watershed Development Fund with
NABARD in 1999-00, introduction of Technology Mission for Integrated Development of
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Horticulture in the North Eastern Region in 2000-01, Technology Mission for Cotton in
1999-00, introduction of centrally sponsored scheme for Farm Water Management to increase
crop production in eastern India in 2001-02. The other important policy measures are
legislation for plant variety protection and farmers rights, announcement of National Seed
Policy in 2002 and implementation of National Agricultural Insurance Scheme in 1999-2000.
To address the credit needs credit linked capital subsidy scheme for
construction/modernization/expansion of cold storage infrastructure was introduced in 2000-
01. The other schemes were introduction of rural godown scheme 2001-02, lifting some of
the restrictions and controls on the movement and storage and export of foodgrain or
agricultural produce, dereservation of the manufacture of some farm implements/
machineries from the small scale industry sector 2002.

Public sector outlay in ninth plan related to agriculture and allied activities was Rs.
37546 crores. The performance of the agriculture sector during this plan period was not
encouraging. The average growth was 2.06% through the targeted growth was 3.9%. The
average annual production of pulses was marginally declined to 13.3 metric tones from 13.41
metric tons during the eighth plan. However there is an increase in the production of food
grains to 202.58 metric tones.

Tenth Five Year Plan (2002-07)

During the tenth plan Public sector outlay related to agriculture and allied sector was
Rs.58933 crores. During this plan period Ministry of Agriculture introduced several programs
aimed at diversification of agriculture, strengthening technology validation, demonstration
and dissemination, water saving and development infrastructure. The programs are National
Horticulture Mission, Micro Irrigation Programme, National Gender Resource Centre in
Agriculture, Jute Technology Mission, National Agricultural Innovation Project, National
Fisheries Development Board, National Mission on Bamboo Technology and Trade
Development. Government decided to set up a Krishi Vigyan Kendra (KVK) in each rural
district (578) in the country. Agriculture Technology Management Agencies (ATMAs), the
National Rainfed Area Authority (NRAA) were introduced. Government upgraded a
rehabilitation package amounting to Rs 16978.69 crores for farmers in distress in 31 selected
districts in Andhra Pradesh, Karnataka, Kerala, Maharashtra. These packages from prime
minster relief fund were released to strengthening institutional credit support, irrigation
development, promotion of micro irrigation, watershed development, extension services,
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enhancing Seed Replacement Rate (SRR) and income augmentation through horticulture,
livestock and fisheries in above mentioned states.

Eleventh Five Year Plan (2007-12)

This plan emphasized inclusive growth to achieve a target growth of 4% per annum in
GDP from agricultural and allied services. Eleventh plan identified the need for improving
the access to technology to increase production and optimum use of natural resources. There
are identified tools to make agricultural sector inclusive in the development process. The plan
aimed to attracting higher public investments and promoting diversification to higher value
crops and livestock, decentralizing decision making to address location specific local
problems and to improve the accessibility of land, credit to the farmers. Several programmes
like National Food Security Mission (NFSM), Rashtriya Krishi Vikasa Yojana (RKVY),
Macro Management of Agriculture (MMA), Integrated Scheme of Oil Seeds, Pulses, Oil
Palm, and Maize (ISOPOM), National Mission for Sustainable Agriculture (NMSA),
National Project on Management of Soil Health and Fertility (NPMSHF) were introduced.
During this plan period the projected allocation for agriculture and irrigation was Rs 121556
crores at 2006-07 prices.

3.4 NATIONAL PROJECT ON MANAGEMENT OF SOIL HEALTH AND

FERTILITY (NPMSHF)

Government of India has introduced NPMSHF during 2011-12 in order to provide

access to information about soil fertility management to farmers through improving the soil
testing facilities by establishing more testing laboratories including mobile testing facilities,
training and demonstrations and financial assistance for promotion of Integrated Nutrient
Management (INM). The following table shows the progress in release of funds under
different components.

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 Table 3.1
Funds sanctioned under National Project on Management of Soil Health and Fertility
(NPMSHF), Integrated Scheme of Oilseeds, Pulses, Oilpalm and Maize (ISOPOM) in
India

Components Unit 2010-11 2011-12 2012-13 2013-14

Setting up/Strengthening of Nos. 35 17 1 17
Soil Testing Laboratories
Setting up/Strengthening of Nos. 2 7 0 2
Fertilizer Quality Control
Laboratories
Trainings Nos. 184 297 0 160
Demonstrations Nos. 274 210 0 472
Promotion of Integrated Ha. 0 82000 0 11140
Nutrient Management (INM)
Total Amount Sanctioned Rs. in 16.89 11.29 8.29 19.15
under NPMSH and F Crore
Total Amount Sanctioned Rs. in 55.8 64.88 32.35 27
under ISOPOM Crore
Source: indiastat.com

The data shows that 35 laboratories were set up in 2010-11 and 17 in 2013-14. The
project also proposed to strengthen the fertilizer quality control laboratories. The project gave
greater importance to demonstrations and conducted 274 demonstrations in 2010-11 and 472
in 2013-14. The project aimed at promotion of Integrated Nutrient Management (INM).
During 2011-12, 82000 ha were brought under INM. An amount Rs 16.89 crores was spent in
2010-11 and during 2013-14 an amount of Rs 19.15 crores was spent. Exclusively for
oilseeds, pulses, oil palm and Maize (ISOPOM) an amount of Rs 55.8 crores was spent in
2010-11 and 27.00 crores during 2013-14.

3.4.1 Allocation to Southern Region

The following table shows allocation to southern states under NPMSHF during 2015-
16. The data shows that among southern states, Karnataka was sanctioned highest amount of
Rs 7.53 crores. The next is Andhra Pradesh with an amount of Rs 4.61 crores.

Table 3.2
Allocation of funds under NPMSHF to southern states during 2015-16
States/Uts Allocation (Rs in Crores)
Andhra Pradesh 4.61
Karnataka 7.53
Kerala 0.87
Tamil Nadu 3.47
India 90.02
Source: Indiastat.com

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3.4.2 Establishment of Soil Testing Laboratories

As explained earlier, soil testing is given highest priority under this project so that
location specific nutrient requirement can be identified and recommended. Therefore the
project has proposed to start mobile and static soil testing laboratories all over India to cater
to the needs of the soil testing. The proposed soil testing laboratories during 2007-12 in south
zone is presented in table 3.3.

The data shows that largest number of soil testing laboratories were proposed in
Karnataka and Tamil Nadu. While 15 mobile soil testing laboratories were proposed in
Karnataka, 12 were planned in Tamil Nadu and 7 in Andhra Pradesh, 29 static laboratories
were proposed in Karnataka and 24 in Tamil Nadu.

Table 3.3
Number of soil testing laboratories proposed under NPMSHF in southern zone
(2007-12)

States/Uts Mobile Static Total

Andhra Pradesh 7 14 21
Karnataka 15 29 44
Kerala 7 13 20
Tamil Nadu 12 24 36
Puducherry 1 1 2
Andaman and Nicobar
Islands 1 1 2
Lakshawdeep 1 1 2
Source: Indiastat.com

Twelfth Five Year Plan (2012-17)

Twelfth five year plan emphasized on inclusive growth. The plan document observed
that agriculture growth has always been an important component for inclusiveness in India
and higher GDP growth without corresponding growth in agriculture leads to accelerating
inflation in the country. It was estimated that 9.0% growth of the economy as a whole will
generate the demand to support 4.0% growth in agriculture with food grains growing at about
2.0% per year and non food grain growing at 5.0 to 6.0%.

3.5 NATIONAL AGRICULTURAL POLICY 2000

The first ever comprehensive National Agricultural Policy in India was announced in
2000. The major objectives of this policy are to attain-

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 1. A growth rate in excess of 4% per annum in the agriculture sector.

2. A growth that is based on efficient use of resources and conserves soil, water and
biodiversity.

3. A growth with equity, i.e. growth which is wide spread across regions and farmers.

4. 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 liberalisation and globalisation.

5. Growth that is technologically, environmentally and economically sustainable.

The objectives of this policy are broad based aiming at promoting agricultural
development with efficient use of resources and equitable distribution of the fruits of the
development. These two objectives are essential for sustainable development. The policy also
aims at maximising the benefits from domestic and international market which is very
appropriate under the neo-liberal policies of privatization and globalization.

3.5.1 Focus Areas under National Agricultural Policy (NAP) 2000

To attain the stated objectives, the policy focused on the following areas,

1. Changing the approach of addressing agriculture sector from schematic approach to

macro management approach. Central government is expected to assume the role of
advocacy, articulation and facilitation to help the states in their efforts towards
achieving accelerated agricultural development.

2. Efficient use of natural resources like soil, water, biodiversity and environment are
essential for sustainable agriculture. The policy suggested that sustainable agriculture
should be promoted through technically sound, economically viable, environmentally
non-degrading and socially acceptable use of natural resources. Therefore the policy
aims at promoting special measures for conserving soils and enriching the fertility,
watershed approach, promotion of balanced and optimum use of fertilizers together
with organic manures etc.

3. Another important area of focus is on providing adequate and timely inputs including
credit. This is aimed to be achieved by creating favourable atmosphere for public and
private capital formation, providing micro credit etc.

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 4. The policy took into consideration regarding the importance of main streaming gender
concerns in agriculture with appropriate structural, functional and institutional
measures for empowerment of women.

5. The importance of tenancy reforms, right of tenants and share croppers was also
identified as one important factor for attaining equity. Therefore the policy focuses on
consideration of land holdings, redistribution of ceiling surplus land and waste lands
among the land less farmers, unemployed youth with initial capital and tenancy
reforms.

6. Promoting private sector participation through contract farming and land leasing
arrangements to allow accelerated technology transfer, capital inflow and assured
markets.

Though the policy is a broad policy taking into account several aspects of agricultural
sector, it was severely criticised by the researchers.

According to Thamarajakshi (2000) the National agricultural policy is a broad policy

and it is in a way the extension of what was proposed in the IX Plan. But, the themes are too
general and unrelated to the specified objectives. Due to this, the document does not lead to a
cogent set of policy measures and it does not prioritise the tasks to be undertaken.

The document does not spell clearly the strategies to be adopted and it neglects the
most important aspect of mounting subsidies, decreasing public and private investment and
growing disparities among the states. Infrastructure is also another area which was neglected,
it is not possible to make the agriculture sector competitive in the process of globalisation
without a focus on infrastructure. (Indira, 2000)

Deshpande and Praschita (2006) pointed out that “The National Agricultural Policy
has not followed some simple steps in evolving a national level policy frame”. According to
them the policy ignored the importance of evolving a policy with the involvement of all the
stakeholders. It missed the important steps of review of earlier experience, inviting
comments, deliberations on various dimensions of the policy etc.

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3.6 NATIONAL POLICY FOR FARMERS 2007

Government of India has appointed M.S. Swaminathan as the chairman of National

Commission on Farmers and the commission submitted its report on October 2006. The
commission also prepared a draft National Policy for Farmers incorporating its
recommendations. After consultations with the state governments and the concerned central
ministries, Government of India approved the National Policy for Farmers 2007.

3.6.1 The Major Goals of the National Policy for Farmers 2007

The important goals of the National Policy for Farmers 2007 are

1. To improve economic viability of farming by substantially increasing the net income

of farmers and to ensure that agricultural progress is measured by advances made in
their income.

2. To protect and improve land, water, bio-diversity and genetic resources essential for
sustained increase in the productivity, profitability and stability of major farming
systems by creating an economic stake in conservation.

3. To develop support services including provision for seeds, irrigation, power,

machinery and implements, fertilizers and credit at affordable prices in adequate
quantity for farmers.

4. To strengthen the bio-security of crops, farm animals, fish and forest trees for
safeguarding the livelihood and income security of farmer families and the health and
trade security of the nation.

5. To provide appropriate price and trade policy mechanisms to enhance farmers

income.

6. To provide for suitable risk management measures for adequate and timely
compensation to farmers.

7. To complete the unfinished agenda in land reforms and to initiate comprehensive

asset and Aquarian reforms.

8. To mainstream the human and gender dimension in all farm policies and programmes.

9. To pay explicit attention to sustainable rural livelihoods.

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 10. To foster community-cantered food, water and energy security systems in rural India
and to ensure nutrition security at the level of every child, woman and man.

11. To introduce measures which can help attract and retain youths in farming and
processing of farm products for higher value addition by making it intellectually
stimulating and economically rewarding.

12. To make India a global outsourcing hub in the production and supply of the inputs
needed for sustainable agriculture, products and processes developed through
biotechnology and Information and Communication Technology (ICT).

13. To restructure the agricultural curriculum and pedagogic methodologies for enabling
every farm and home science graduate to become an entrepreneur and to make
agricultural education gender sensitive.

14. To develop and introduce a social security system for farmers.

15. To provide appropriate opportunities in adequate measure for non-farm employment

for the farm households.

An Inter-Ministerial Committee was set up under the Chairmanship of the Principal

Adviser in the Department of Agriculture and Cooperation for preparation of a Plan of Action
for operationalization of the NPF, 2007. The Committee comprised officers of Central
Ministries/Departments concerned as members. After several discussions the final plan of
action for operationalization of the NPF 2007 was finalized and circulated among all
concerned in 2008. The Committee identified 201 steps where necessary action was to be
taken. Out of these 201 points, 64 relate exclusively to the Department of Agriculture and
Cooperation (DAC), another 64 relate exclusively to other Central Departments/ Ministries
and 73 points are common to the DAC and other Departments. Another Inter-Ministerial
Committee (IMC) was set up under the Chairmanship of Joint Secretary (Policy), Department
of Agriculture & Cooperation to monitor the progress of implementation of these 201 action
points. A regular monitoring mechanism has also been put in place to oversee the progress of
implementation of the NPF 2007. (Government of India, 2014)

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3.7 REVIEW OF AGRICULTURAL INPUT AND OUTPUT POLICIES

Landes and Gulati (2003) observed that “India‟s major domestic agricultural policy
instrument include a system of minimum support prices for major crops, input subsidies on
fertilizer, power and irrigation water and public investment in surface, and to a lessor extent,
ground water irrigation”.

The review of the agricultural policy at the centre shows that no attempts are made to
evolve a comprehensive policy to address the issues in agricultural sector till the
announcement of National Agricultural Policy, 2000. Even this policy is also only guidelines
under which the respective state governments are expected to prepare their policies. Due to
the linkages between the input policies and output policies it is important to look into these
policies to understand the impact of agricultural policies on soil fertility management
practices of the farmers. Therefore an attempt is made to review the agricultural input
policies and output policies in the following section. While majority of the input policies are
related to subsidy, output policies are related to price support and export promotion.

Agricultural subsidies are generally two types; investment subsidies and input
subsidies. Investment subsidies aim to improve the farm productivity level by encouraging
farmers to develop infrastructural facilities like installation of drip irrigation, construction of
rain water harvesting system and acquiring farm implements. Input subsidies are fertilizer
subsidy and also subsidy on water and electricity used for irrigation and other agricultural
purposes. At present input subsidies are also provided on seeds as well as on herbicides and
pesticides. Farmers also get subsidy on credit from banks and co-operatives under priority
sector lending.

The agricultural input subsidy programmes in India originated during the Green
Revolution period of 1960s, to support the green revolution through providing subsidies to
fertilizers, irrigation, power and credit. Fertilizer subsidy is provided by the central
government, power and irrigation subsidy given by the respective state governments.

All these subsidies by reducing the prices of the inputs, served in the initial stages of
green revolution, as incentives to the farmers for adopting the newly introduced seed cum
fertilizer technology. (Rajwinder Kaur and Manisha Sharma, 2012)

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3.7.1 Fertilizer Subsidy

Fertilizer subsidy was provided by central government from the green revolution
period, during 1960s. The Main aim of this subsidy is to provide fertilizers to the farmers at
reduced prices for encouraging the usage of chemical fertilizers. These subsidies are
increasing year after year. While total fertilizer subsidy was amounting to only Rs 33 crores
in 1973-74, it increased to Rs 72079 crores by 2014-15. Details of fertilizer policy is
discussed in the fourth chapter.

3.7.2 Electricity Subsidy

Electricity is another important input to agriculture. Irrigation is dependent on power

supply and the price. Therefore electricity subsidy was introduced in the green revolution
period for promoting irrigation. Power subsidy is provided by respective state governments.
While some states provide free electricity to agriculture, some other states provide subsidized
rates to agriculture purpose. In the state of Karnataka free electricity is provided to
agriculture purpose. It is heavy burden to the government. The amount of subsidy on power
for the past thirty years is presented below.

Table 3.4
Power subsidy to agriculture sector in India
(In crores)
Year Power subsidy
1980-81 368.00
1990-91 4621.48
2000-01 27083.47
2013-14 66989
Sources: The Working of States Power Utilities and Electricity’s Departments, Annual report
2013-14, Government of India, Various State Electricity Boards.
The amount of subsidy increased from Rs 368 crores in 1980-81 to Rs 27083.47
crores by 2000-01 and to Rs 66989 crores by 2013-14.

Subsidies are introduced to provide the required inputs to farmers at reduced cost so
that the net return to the farmers will be high. However, working of the subsidies has shown
that they have a negative environmental consequences.

Just as in the case of environmental resources for which there is no supply price leads
to over exploitation. When the inputs are supplied at lower price through subsidy, it also
leads to over usage. This phenomenon is documented in the literature.

63
 “According to GOI reports, input subsidies have resulted in overutilization of inputs.
This overutilization has in turn led to soil degradation, soil nutrient imbalance, environmental
pollution, and groundwater depletion, all of which have caused decreased effectiveness
inputs. The growing cost of input and food subsidies has also contributed fiscal deficit many
states”. (Arora, 2013)

3.7.3 Credit Policy for Agriculture Sector

Credit is one of the main inputs for the development of agriculture sector. Finance is
the major bottleneck for Indian farmers as majority of those are marginal and small farmers
with less than 2 hectares of land.

Several financial institutions provide short term and long term credit to agricultural
sector. They are Regional Rural Banks (RRBs), Scheduled Commercial Banks, Non-Banking
Financial Institution (NBFCs), Self Help Groups (SHGs), etc.

Government of India has announced several policy measures and programs to

improve the accessibility of credit to farmers during the planning period.

The first attempt to address the credit needs of farmers came with the submission of
report by the All India Credit Survey Committee Report in 1954. The report emphasised the
need for providing financial support to farmers through subsidised credit. Based on this
Agricultural Refinance Corporation (ARC) was established in 1963 to provide funds for
investment in agriculture. Later the Lead Bank scheme was introduced with the primary
objective of taking a territorial approach to rural development. The scheme involved
commercial banks, co-operative institutions, government and semi government agencies in
the process of economic development. In the subsequent years several institutions are created
for financing agriculture sector at subsidised rate of interest. Regional Rural Banks (RRBs)
were the first such institutions established in 1975. Later National Bank for Agriculture and
Rural Development (NABARD) was established in 1982 mainly as a refinancing institution.
Public sector banks formulated Special Agricultural Credit Plan in 1994-95, to achieve
distinct and marked improvement in the flow of credit to agriculture. Under this programme
banks are required to fix self targets for achievement during the financial year. This
programme also extended to private sector banks from 2005-06. Kissan Credit Card (KCC)
Scheme was announced in 1998-99 to provide adequate and timely credit support from the

64
banking system under a single window to the farmers for their cultivation and other needs.
Up to the end of March 2013, a total 12.03 crores kissan credit cards were issued.

National Agricultural Insurance Scheme (NAIS) was introduced by the government of

India from rabi season 1999-2000 to protect the farmers from the crop failures or losses from
the natural calamities. This scheme was available for all farmers, loanees, non loanees and it
covers cereals, millets, pulses, oil seeds, and commercial and horticulture crops. National
Agricultural Insurance Scheme (NAIS) is presently being implemented in 24 states and 2
union territories except Punjab and Arunachala Pradesh.

Pilot Modified National Agricultural Insurance Scheme (MNAIS) was launched

2010-11 Rabi season in 50 districts.

The central government introduced Interest Subvention Scheme in 2006-07 to enable

banks to provide short term credit to agriculture (crop loan) upto 3 lakh at 7% (against the
prevailing rate of 9 per cent) interest to farmers. Government of India provided interest
subvention at 2 per cent to public sector banks, regional rural banks and co-operative banks in
respect of short-term production credit.

In 2006 the then Prime Minister of India announced a rehabilitation package, to

mitigate the distress of the farmers in suicide-prone districts in the country. This scheme
included interest waivers, investment in irrigation, restructuring of loans, seed replacement,
horticulture and watershed development.

In 2009-10, the Government of India introduced an additional interest subvention of 1

per cent to farmers who repaid their loans on or before the due date; interest rate subvention
for timely repayment was raised to 2 per cent in 2010-11 and further to 3 per cent in 2011-12,
making the total subvention 5 per cent.

National Bank for Agriculture and Rural Development (NABARAD) has introduced a
concessional refinance scheme in the year 2011-12, to accelerate investments in agriculture to
enhance production and productivity of crops in the Eastern region (Assam, Bihar,
Jharkhand, Chhattisgarh, Odisha, West Bengal and Eastern Uttar Pradesh) Under this
scheme, NABARD provides 100% refinance to banks at a concessional rate of 7.5% p.a.
provided certain minimum targets are achieved by the bank in financing these key
investments.

65
3.7.4 Sources of Credit for Agriculture

Trends in the sources of short term and medium/long term credit needs of agriculture
sector is presented in the table 3.5 and 3.6. According to the publication of Department of
Agriculture and Cooperation there is a continuous increase in the flow of short term credit to
agriculture sector. It increased from Rs 102.89 crores in 1999-2000 to Rs 473.50 crores by
2012-13. However there are changes in the relative share of different agencies. The share of
cooperatives in meeting the credit needs of agriculture sector increased from 14.36% in 1999-
2000 to 21.67% by 2012-13. Similarly the share of RRBs also increased considerably. The
share of other agencies has declined.

In the case of medium and long term credit the amount of credit decreased from Rs
765.53 crores in 1999-2000 to Rs 133.88 crores by 2012-13. In recent times, most of the
medium and long term credit needs are met by commercial banks only. The share of
cooperative banks increased up to 2003-04, but declined there after. Similarly the share of
RRBs also decreased and the share of commercial banks has increased and at present more
than 80% of the medium and long term credit needs of the agriculture sector is met by
commercial banks.

Table 3.5
Relative share of different sources of short term credit to agriculture
(In Percentage)

Year Co- Regional Commercial Other Total

operative Rural Banks Banks Agencies Amount
Banks (in crores)
1999-00 14.36 2.35 11.37 71.92 102.89
2000-01 18.73 3.68 15.28 62.32 88.26
2001-02 23.06 4.64 21.98 50.33 81.47
2002-03 23.26 5.65 24.96 46.13 84.55
2003-04 20.23 5.44 23.40 50.93 111.92
2004-05 15.26 5.62 20.67 58.44 177.96
2005-06 20.19 7.18 33.32 39.31 172.98
2006-07 27.89 12.01 60.09 0.00 138.46
2007-08 22.08 11.29 66.64 0.00 183.52
2008-09 19.12 10.65 70.24 0.00 210.46
2009-10 20.58 10.77 68.64 0.00 276.66
2010-11 NA NA NA NA NA
2011-12 20.66 11.97 67.38 0.00 396.16
2012-13* 21.67 11.82 66.52 0.00 473.50
*Provision, NA-Not Available
Source: Department of Agriculture and Co-operation, Annual report 2011-12
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 Table 3.6
Relative share of different sources of medium/long term credit to agriculture
(In Percentage)

Year Co-operative Regional Commercial Other Total

Banks Rural Banks Banks Agencies Amount
(in crores)
1999-00 0.46 97.84 1.70 3.79 765.53
2000-01 0.42 98.13 1.44 2.82 992.51
2001-02 22.04 5.01 72.95 181.42 21.50
2002-03 16.58 5.41 78.01 171.31 23.93
2003-04 13.24 4.67 82.09 84.44 31.98
2004-05 7.96 4.68 87.36 173.98 51.16
2005-06 5.98 3.36 90.66 419.66 74.82
2006-07 4.24 4.18 91.58 0.00 90.95
2007-08 4.80 6.20 89.00 0.00 66.07
2008-09 6.52 4.76 88.72 0.00 91.45
2009-10 6.07 5.02 88.91 0.00 107.86
2010-11 NA NA NA NA NA
2011-12 5.34 6.14 88.52 0.00 114.87
2012-13* 6.43 5.77 87.80 0.00 133.88
*Provision, NA-Not Available
Source: Department of Agriculture and Co-operation, Annual report 2011-12

3.8 AGRICULTURAL PRICE POLICY

Agricultural production being seasonal, agricultural prices experience severe

fluctuations depending on the quantity produced. The quantity depends on several factors.
While some of the factors are controllable, some are not controllable. The controllable factors
are distribution and pricing, uncontrollable are natural calamities, pests etc. fluctuations in
prices influence the income of the growers and their decisions relating to soil management.

Minimum Support Price (MSP) is an important component of agricultural price

policy. Based on the cost of cultivation MSP will be announced. Government guarantees
minimum support price to the farmers and procures food grains from farmers to ensure food
security and supply to the consumers through Public Distribution System (PDS).

3.8.1 Main Objectives of the Agricultural Price Policy

• To protect the producers through guaranteed minimum support price.

• To induce the desired outputs of different crops according to growth targets.

• To increase aggregate agricultural output through large input use and adoption of high
yielding seed, fertilizer and water responsive technology.
67
 • To induce farmers to part with a larger proportion of food grains production as a
marketed surplus.

• To protect the consumers against an excessive rise in prices.

Considering several factors like cost of production, changes in input prices, price
parity, market demand and supply, Minimum Support Price (MSP) will be announced
by the CACP (Commission for Agriculture Costs and Prices). Presently 25 crops
under the MSP scheme.

3.8.2 Market Intervention Scheme (MIS)

This scheme was implemented by the Department of Agriculture and Co-operation for
the procurement of horticultural commodities which are perishable in nature and are not
covered under the price support scheme. According to this scheme, if price of a commodity
covered under MIS falls below the specified economic level, the Government of India can
intervene on the request of state government, by purchasing the product at intervention price,
not exceeding the cost of production. The central and state governments share equally the
losses incurred in the implementation of MIS. However, the loss is restricted up to 25% of the
total procurement value including MIS paid to the farmer plus permitted overhead expenses.
Profit earned, if any, in the implementation of the MIS is retained by the procuring agencies.
Normally MIS is implemented when there is at least 10% increase in production or 10%
decrease in the ruling prices over the previous normal year (Arora, 2013).

3.8.3 Price Support Scheme (PSS)

Government of India introduced Price Support Scheme (PSS) for some of the crops
and it is implemented by different agencies. The Department of Agriculture and Co-operation
implemented the PSS for procurement of oilseeds, pulses and cotton through National
Agricultural Cooperative Marketing Federation of India Limited (NAFED), which is the
central nodal agency, at the MSP declared by the government. The NAFED undertakes
procurement of oilseeds, pulses and cotton under the PSS as and when prices fall below the
MSP. Procurement under PSS is continued till prices stabilize at or above the MSP.

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 The following table shows the MSPs of Food grains and Non food grains in India.

Table 3.7
Minimum support price for food grains according to crop year (Fair Average Quality)
(Rs per Quintal)

Year Paddy Coarse Wheat Gram Arhar Moong Urad

common cereals (Tur)
1990-91 205 180 225 450 480 480 480
1991-92 230 205 280 500 545 545 545
1992-93 270 240 330 600 640 640 640
1993-94 310 260 350 640 700 700 700
1994-95 340 280 360 670 760 760 760
1995-96 360 300 380 700 800 800 800
1996-97 380 310 475 740 840 840 840
1997-98 415 360 510 815 900 900 900
1998-99 440 390 550 895 960 960 960
1999-00 490 415 580 1015 1105 1105 1105
2000-01 510 445 610 1100 1200 1200 1200
2001-02 530 485 620 1200 1320 1320 1320
2002-03 530 485 620 1220 1320 1330 1330
2003-04 550 505 630 1400 1360 1370 1370
2004-05 560 515 640 1425 1390 1410 1410
2005-06 570 525 650 1435 1400 1520 1520
2006-07 580 540 850 1445 1410 1520 1520
2007-08 745 620 1000 1600 1220 1700 1700
2008-09 900 840 1080 1730 2000 2520 2520
2009-10 1050 840 1100 17760 2300 2760 2520
2010-11 1000 880 1170 2100 3500 3670 3400
2011-12 1080 980 1285 2800 3700 4000 3800
2012-13 1250 1175 1350 3000 3850 4400 4300
2013-14 1310 1310 1400 3100 4300 4500 4300
2014-15 1360 1310 1450 3175 4350 4650 4350
Source: 1. Ministry of Agriculture, Government of India and annual reports of RBI
2. Commission for Agricultural costs and Prices (CACP).

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 Table 3.8
Minimum support price for non food grains according to crop year (Fair Average
Quality)
(Rs per Quintal)

Year Sugar Cotton Jute Groun Soyabean Soyabean Sun Rapeseed Saf
cane dnut* black Yellow flower / flower
seed Mustard
1990-91 22 750 320 580 350 400 600 600 575
1991-92 26 840 375 645 395 445 670 670 640
1992-93 31 950 400 750 475 525 800 760 720
1993-94 34.50 1050 450 800 525 580 850 810 760
1994-95 39.10 1200 470 860 570 650 900 830 780
1995-96 42.50 1350 490 900 600 680 950 860 800
1996-97 45.90 1380 510 920 620 700 960 890 830
1997-98 48.45 1530 570 980 670 750 1000 940 910
1998-99 52.70 1650 650 1040 705 795 1060 1000 990
1999-00 56.10 1775 750 1155 755 845 1155 1100 1100
2000-01 59.50 1825 785 1220 775 865 1170 1200 1200
2001-02 62.05 1875 810 1340 795 885 1185 1300 1300
2002-03 69.50 1875 850 1355 795 885 1195 1330 1300
2003-04 73 1925 860 1400 840 930 1250 1600 1500
2004-05 74.50 1960 890 1500 900 1000 1340 1700 1550
2005-06 79.50 1980 910 1520 900 1010 1500 1715 1565
2006-07 80.25 1990 1000 1520 900 1020 1500 1715 1565
2007-08 81.18 2030 1055 1550 910 1050 1510 1800 1650
2008-09 81.18 3000 1250 2100 1350 1390 2215 1830 1650
2009-10 129.84 3000 1375 2100 1350 1390 2215 1830 1680
2010-11 139.12 3000 1575 2300 1400 1440 2350 1850 1800
2011-12 145 3300 1675 2700 1650 1690 2800 2500 2500
2012-13 170 3900 2200 3700 2200 2240 3700 3000 2800
2013-14 210 4000 2300 4000 2500 2560 3700 3050 3000
2014-15 220 4050 2400 4000 2500 2600 3750 3100 3050
*In shell
Source: Ministry of Agriculture government of India, Economic survey 2011-12 GOI, Commission for
Agricultural costs and prices (CACP).

3.9 AGRICULTURAL POLICY IN KARNATAKA

Karnataka has always taken a lead ahead of the other states in India as far as
agricultural policy initiatives are concerned. It became the first state in the country to unveil
its own agricultural policy in 1995 itself.

3.9.1 Stages in the Agricultural Policy Formation in Karnataka

During the mid eighties agriculture sector in Karnataka faced several problems. This
led to the appointment of an expert committee under the chairmanship of T.R. Satish
Chandra, to investigate the causes for stagnation of agriculture and suggest appropriate
70
measures for stimulate agricultural sector. The committee observed that, the introduction of
HYV and the use of major nutrients (NPK) for higher productivity without the balanced use
of organic manure is bound to create problems of micro nutrient deficiency in many
situations. It also observed that the soil testing facilities are not always utilized by the farmers
for determining the quantum of application of different nutrients, even though it is
recommended in the package of practices. The committee suggested that to arrest a
stagnant/declining trend in productivity it is necessary to study the changing situation of soil
fertility under various cropping systems and in both rain fed and irrigated situations. The
committee observed that without organising an efficient soil management programme the
crop yields will continue to show a stagnant/declining trend. (Government of Karnataka, T R
Satish Chandran Report 1993, Quoted in Hanumappa, 2000).

The committee submitted its report in 1993 and the recommendations of this
committee were far reaching. The major recommendation of this committee were to
discourage those crops whose average yield is less than the average of the state, removing the
restriction on the import of seeds, allowing the private sector in seed technology,
withdrawing the facilities of free supply of electricity to the agriculture, supporting research
and development programmes by the private sector, allowing the leasing out of land for a
minimum period of 20 years and relaxing the land ceiling laws. The committee report became
base for the Karnataka State Agricultural Policy 1995.

3.9.2 Karnataka State Agricultural Policy 1995

The Government of Karnataka adopted the Agricultural Policy Resolution in 1995. It

is a comprehensive policy. The main aim of Karnataka state agricultural policy was achieving
the higher growth rates in agricultural and its allied sectors. The policy assumes that the
growth in agricultural sector would provide momentum to growth in other sectors, through its
backward and forward linkages. The other important aim was promoting efficiency in the use
of resources simultaneously for protecting the environment. The policy clearly targeted
efficient use of resources and also conserving the environment by reducing the environmental
pollution.

The basic guidelines of the policy as perceived by Deshpande & Praschitha (2005) are
1. Land and land use policy to improve growth prospects.
2. Policy to improve yield and achieve self sufficiency in food grain production.

71
 3. Policy towards increasing the availability and improving the efficient use of scientific
inputs and other supporting services like credit.
4. Policy to provide adequate research, education and extension support for
accomplishing points 2 and 3 above.
5. Policy to reduce regional imbalance in agricultural development with the state by
identifying the needs and growth potentials of different sub regions based on agro
climatic conditions.
6. Policy to sustain the growth in output and yields through creating proper marketing
and pricing structure.
7. Potential for growth in other sub sectors.

Some of the special progressive measures proposed in the agricultural policy

document are, fixation of realistic water and power rates, reversal of the declining trend in
agriculture investment, legalizing contract farming by food processing units and alteration of
land laws to permit land lease by farmers themselves.

Major deviation in the present policy was the suggestion to grant industry status to
agriculture. The policy document identified declining investment and capital formation, as
one of the important problem in the stagnation of agricultural sector. Therefore, to
supplement the private sector investment, public sector investment was envisaged in the
creation of economic and social infrastructure, higher out-lays in agricultural research and
development, investment in major and minor irrigation projects, investment in water
harvesting, roads, development of markets, social infrastructure like primary health and
education, providing low-cost housing.

Private investment is sought in, production, marketing and processing activities, seed
multiplication, high tech agriculture, setting-up cold storage chains, agro-processing, bringing
new technology in processing, working with farmers on their fields in raising their
productivity, providing them with a forward market.

The State Government had also constituted a cabinet sub-committee under the
Chairmanship of Minster for Agriculture with 10 other Ministers of various departments as
members to oversee the implementation of State Agricultural Policy. In the context of
liberalization and opening of the Indian Economy, the Government had identified nine
important areas where further scope existed for improvement: a) agricultural research and
adoption of improved technology b) protection of yield levels already attained and bridging
72
the yield gap between potential and actual yields to attain higher productivity in all the ten
agro-climatic regions c) hastening the pace of Integrated Watershed Development d) cost
effective land development, and water management techniques, etc. e) extension services f)
input supply and farm mechanization g) rural credit h) horticulture including Floriculture,
Dairying, Poultry, Meat, Wool, Fisheries and Sericulture i) agricultural marketing
infrastructure, processing, etc, j) organic farming and trade policies with particular reference
to input and output. (Deshpande and Praschitha, 2005).

Due to the focus on public and private investments, promotion of future markets with
a little attention to land reforms etc. The policy was criticised by many leftist political parties
and several researchers.

It is felt that the policies benefit the big industrialists, capitalists, multinationals and
create corporate landlordism. (Assadi, 1995)

Despite the policy measures several suicides by the farmers were reported. The
Government of Karnataka appointed a Joint House Committee (JHC) in 2000, under the
chairmanship of G.B. Shivakumar, former member of legislative assembly, to study the
farmers suicide. The committee made several recommendations and justified the need to give
immediate relief for the victims of natural calamities.

Another expert committee under the chairmanship of G. K. Veeresh was appointed to

look into the issue of compensation payment and confidence building measures to be taken
and also find out the root causes of suicides to suggest measures.(Nagappa. P et al. 2010)

The committee submitted its report in 2002 with several recommendations. The major
recommendations of the committee are,

1. Constitution of separate Farmers Welfare Department in the state to function under the
direct supervision of Chief Minister.
2. Creation of Farmers Welfare Fund (FWF) and adopt measures for its proper utilization.
3. Introduction of special concessions to farmers who have crossed 60 years of age
considering as „Senior Farmer‟.
4. Designing Health Insurance Plans at the state level for the benefit of farming community.
5. Extension of irrigation facilities.
6. Amendments to the existing Land Reforms Act.

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 The Karnataka state has constituted a state level Agricultural Commission in April
2000, under the chairmanship of Dwarkinath, to deal with a few crucial problems confronting
the Agriculture sector. The immediate task of the committee was to identify the missions for
bridging the gap between actual yield and possible yield in the different agro climatic zones
of the state. Agriculture Commission submitted the short term report in December 2000. The
major recommendations of the commission are as follows,

1. The committee suggested for promotion of cultivation of BT Cotton to reduce the

incidence of pests in cotton production. The agricultural universities should directly
involve in testing the technology in their own research stations and monitor the testing
elsewhere in the state.

2. The committee identified the need for improving the productivity of rice and
suggested for the promotion of newly evolved and tested hybrid rice.
3. The committee suggested for efforts to promote public and private sector partnership
in the interest of farmers and consumers with suitable networking arrangements for
sharing ideas and information and exchange of materials.

3.9.3 Karnataka State Policy on Organic Farming 2004

Sustainable agriculture is very essential for agricultural development. Unscientific

farming and imbalanced usage of chemical fertilizers impact soil degradation. Though
increased use of chemical fertilizers and pesticides has increased the production, it depletes
the soil nutrients. Organic farming is important tool for reduce these problems. The main aim
of organic farming is to produce of quality and safe agricultural products which contain no
chemical residues, following eco friendly production methods and the farming systems that
restore and maintain the soil fertility. Considering the importance of organic farming,
Karnataka state has announced Organic Farming Policy in 2004. As per the policy document
(Commissionerate of Agriculture, 2004) the main objectives of this policy are as follows.

1. To enhance the soil fertility and productivity by increasing life of soil.

2. To reduce the dependence of farmers for most of the inputs like seeds, manures, and
plant protection materials by sourcing local natural resources thereby reducing the
cost of cultivation.
3. Judicious use of precious water resources and maintenance of production level.
4. To improve farmer's income through production of quality produce.

74
 5. To increase the food security by encouraging traditional crops and traditional food
habits.
6. To increase the rural employment opportunities to prevent migration to urban areas.
7. To facilitate farmer's Self Help Groups for most of their requirements.
8. To make the environment safe and pollution free and also to protect health of human
beings and animals.
9. To equip the farmers to effectively mitigate the drought situation in rain fed and
drought prone areas.
10. To bring about suitable institutional changes in teaching and research on organic
farming.

The promotion of organic farming programmes was entrusted to the state departments
and agricultural universities which work under one umbrella. The financial allocations of the
state are pooled under the head “Organic Farming" and the State Level Empowered
Committee has the powers to allocate the funds to different schemes and agencies. One
Additional Director in the Department of Agriculture was exclusively made responsible for
promotion of Organic Farming programmes in the State.

3.9.4 Karnataka State Agricultural Policy 2006

Nearly after a decade of announcing agricultural policy in 1995, Government of

Karnataka has announced a new agricultural policy in 2006. It is based on the experience
gained and the response of agriculture sector to the policy.

The policy adopted „Farmer Centric‟ approach. It has focused on the farmers rather
than the technology alone. The policy envisaged agricultural growth rate of 4.5 percent per
annum. It is estimated that the 4-5 percent growth rate in gross value of agricultural
production would set the income of about 3 percent per annum for the farmer household and
this is essential for the livelihoods of the farmers.

The policy envisaged a major role for the state to attain the stated objectives of the
policy through budgetary support and macro- economic adjustments, production and
technology sector, land issues, agro processing, trade and value addition to the farm products,
removal of domestic market distortions and strengthen the linkages with other allied sector.

The policy was announced at a time when the net income of the farmers was almost
stagnant, farm sector income was under stress, the suicide of farmers, and agriculture sector

75
has registered growth rate between 2 and 3% per annum. To address all these issues the
Government of Karnataka has announced a policy in 2006.

3.9.4.1 Major Goals of the Policy

The major goals of the policy as presented in the policy document are

1. To improve the Soil Health.

2. Conservation of Natural Resources mainly land and water.

3. To improve the availability of agricultural credit.

4. Integrated Post Harvest Management.

5. Lab to Land at quick pace.

6. To double the agricultural production in a decade and net income of the farmer.

7. To achieve growth rate of 4.5 percent per annum.

8. Shift to „demand driven‟ technology from the „supply pushed‟.

3.9.4.2 The Proposed Macro Initiatives

1. Increase the growth rate of agriculture to 4.5 per cent per annum.

2. Ten percent of budgetary plan expenditure to agriculture sector.

3. Double the developmental expenditure on agriculture out of total development

expenditure.

4. Increase capital formation at 5 per cent per annum.

5. Invest in Agriculture for food security.

6. Promote investment in rural farm and non-farm enterprises.

7. Issue of „Raitha Mitra Pustaka‟ (RMP) a small coded pass book with all information
of the farm family.

Karnataka State Agricultural Policy 2006 is based on five principles known as

“Panchsutra” announced in 2006-07 budget. All these five principles provide integrated
support to agricultural sector in accelerating the growth rate.

76
3.9.4.3 Panchasutra for Agriculture Development
1. Protect and improve the soil health
2. Conservation of natural resources, with special emphasis on water and Micro
irrigation.
3. Timely availability of credit and other inputs to the farmers.
4. Integrate post harvest processing with the production process.
5. Reduce the distance between lab and land in transfer of technology.

The policy document identified the strategies to operationalize these principles into
action. For each of these five principles the following strategies are proposed.

• To protect and improve soil health it is proposed to provide micro nutrients, bio
fertilizers, bio pesticides organic fertilizers etc, to farmers at discount price.

• For the conservation of natural resources with giving special attention to water and
micro irrigation the policy envisaged on proper utilization of water under micro
irrigation program bringing in more and more area under irrigation.

• To improve the timely availability of credit and other inputs to the farmers- it is
proposed to provide sowing seed and other inputs and plant protection chemicals and
other modern agriculture equipments to farmers at discount price to take up
agricultural activities in time.

• To integrate post-harvest processing with the production process the policy proposes
to provide processing units and tarpaulins to farmers at discount price.

• In order to reduce the distance between lab and land in transfer of technology the
policy proposes to encourage departmental training, demonstrations, agriculture fairs,
study tours and other extension programs and also by using mass media to educate the
farmers about technology.

Several initiatives are introduced implement to the strategies proposed in the policy.

Initiatives for the Conservation of Natural Resource

The policy aims at increasing the growth rate of agriculture sector by adopting several
programmes which include conservation of natural resources, mainly land and water. A land
policy document has been prepared by Land Use Board (LUB). The board initiated several
measures. Some of them are handing over the responsibility of development of wasteland to

77
the farmers groups constituted at panchayat level under the technical support of state
Department of Agriculture in a Public Private Partnership (PPP) model. In case farmers do
not want to contribute monetarily in this programme, the department will undertake it and the
cost should be treated as loan at nominal interest rate. The main aim of the programme is to
bring one lakh hectares of waste land into economic use by the next ten years, specifically in
Bijapur, Bagalkot, Raichur, Koppal, Hassan, Bellary and Gulbarga districts.

Initiatives for Reducing the Gap between Lab and Land

To reduce the gap between the lab and land the policy took note of the suggestions
made by Arora Committee and initiated the programmes in association with the agricultural
universities and the Grama Panchayats. The policy initiated to conduct a number of frontline
demonstrations by the scientists to reach a large number of farmers. The policy envisaged to
provide all services from a single window and take constant feed back on problems from
farmers to orient applied research from the State level down to Gram Panchayat level. In
order to avoid loss to farmers it is proposed that new technologies need to be tested under
localized situations and suitably modified wherever necessary for adoption by farmers. It is
proposed to strengthen the linkage already developed between agricultural research and
extension under National Agricultural Research Project (NARP) and National Agricultural
Education Programme (NAEP). The policy has taken initiatives to reduce the time taken to
release new varieties and to adopt the useful results of other states quickly.

Credit is one of the crucial input in agricultural development. Timely availability of

credit is important to the farmers to take appropriate farm related activities. Giving due
importance to credit, the policy made a very innovative suggestions for improving the access
to credit in time to the farmers. The policy makers observed that farmers do not need bulk
credit at the beginning of the season itself, but they need it at different intervals. Our existing
banking system does not have a provision for the release of loan in instalments. Therefore the
policy suggested for the provision of loan at different intervals and change the interest only
on the advance made. This will have a double advantage in the farm of reducing the interest
burden on the farmer and availability credit for different operations. The same procedure
should be applied to the credit from cooperative banks also. It is also observed that the
commercial banks change higher rate of interest compared to the cooperative banks. The
policy suggested that the commercial banks also should change the same lower rate of
interest of 4% just as cooperative banks on crop loan.
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The policy suggested for the introduction of credit counseling to the severely indebted
farmers to bring them out of the credit trap and prevent them from committing suicides.

The policy also suggested for the greater involvement of radio and TV channels to
promote credit and insurance literacy through the „Every Village, a Knowledge Centre‟
movement.

The policy took note of the need to focus on the rainfed agriculture as most of the
taluks under rainfed are backward taluks. The policy has suggested for the formation of
Rainfed Agricultural Commission under the chairmanship of a well-known public figure
connected with the development of agriculture and allied activities. This institution is
expected to prepare a plan for the rainfed agriculture of the State in collaboration with the
two Agricultural Universities and monitor its implementation through the Department of
Agriculture, Government of Karnataka. The policy suggested for promoting rural
industrialization of these backward regions by providing capital investment subsidy. These
initiatives were announced in the industrial policy 2006-2011. The policy suggested for the
strengthening of Raitha Samparka Kendras in these regions.

The policy addressed the drought issue also. It suggested for the merging drought
monitoring cell with Karnataka Natural Disaster Monitoring Cell and increase scope of its
objectives to provide forewarning of all types of natural disasters and also mitigation
methods. It is suggested that telemetric rain gauges should established at all taluk
headquarters in the first phase; hobli headquarters in the second phase and at Mandal
Panchayat level in the third phase. Similarly, stream-gauging stations, one for every 150 Sq.
Kms, are to established to monitor the rainfall. Weather watch committees and resource
management groups should be established at taluk levels. This should be supported by
Drought Monitoring Units at District level involving local people.

The policy observed that the state government has given important place for
watershed development programmes since mid 1980s. The focus of this development
programme is to conserve the soil and moisture as well as to put lands to the best use
according to their capabilities to improve the overall productivity. These interventions have
resulted in increased yields of most of the crops and have helped recharge of ground water.
The policy suggested to augment the resources of Watershed Development Department. The
policy suggested for covering the balance area of 90.50 lakh ha. It is proposed that the
remaining area will be developed in phases in next 20 years.
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 This policy looked in to the suggestion made by the joint group regarding making the
National Agriculture Insurance Scheme (NAIS) more farmers friendly. The policy endorsed
the suggestions of extending the Crop Cutting Experiments (CCE) up to hobli level to
increase the sample size so that reliability of CCE data will be enhanced. Coverage of
Perennial and Horticulture crops of fruits, vegetables and launch insurance schemes for the
said crops were suggested.

The policy identified the challenges faced by the floriculture in the state. The three
significant challenges are; firstly lack of proper transportation with refrigerated vans to reach
nearest airports, this requires huge investment. The second challenge is lack of access to
modern methods of floriculture technology and prices to many small growers. The third
challenge is poor status of primary markets for floriculture products. The policy suggested for
the involvement of Raitha Samparka Kendra (RSK) in providing information. It is also
suggested to start floriculture markets in vantage places on the lines of Bangalore floriculture
market.

The policy suggested some measures for the development of irrigation in the state.
The important suggestions are the completion of the incomplete Projects, implementation of
“On-Off” system, Irrigation Management through Water Users Associations (WUAs) in
canal and tank command areas etc. It is suggested that tanks are to be rejenuated and
managed by Panchayats. Diversification of cropping pattern, shifting to less water consuming
methods like System of Rice Intensification (SRI), revision of water rates, piped water
delivery system, community based recharge of ground water and discouraging deep tube
wells, micro-Irrigation are some of the suggested interventions.

The policy took note of the inefficient works of Raitha Samparka Kendras (RSK) and
suggested measures to make them more efficient. It is suggested that Raitha Samparka
Kendras should be started at the taluk headquarters in all the taluks identified as most
backward by the Committee on Regional Imbalances in Karnataka. The Kendras should be in
charging of an agricultural graduate trained in all the vocations in agriculture, as well as
allied disciplines. Refresher courses should be run for these graduates once in two years. The
graduate in charge of Raitha Samparka Kendras will coordinate the activities of the farmers
and help to constitute farmers groups for the purpose of purchase of inputs as well as
marketing produce. The kendras should display prominently the prices prevailing in the
markets as well as new technologies that have been developed by Agricultural Universities
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and research stations. It should be equipped with a toll-free telephone number that will be
accessible to the farmers in the region in case of emergencies. It is envisaged that these
Kendras should serve as hub centre for the farmer as well as a meeting point for consultation
by the farmers. Knowledge inputs from farmers will also be available here.

The policy suggested for the formation of state level expert committee for monitoring
the performance of varieties developed by private companies for assuring the quality of seeds
supplied to the farmers. Formation of Seed Villages to meet the requirement and promotion
of and production of certain traditional/local varieties on scientific basis to improve the
quality of seed material are suggested. It was planned to establish at least one seed village in
each hobli to produce open pollinated varieties required for the hobli. The technical support
should be provided for the seed village by the State Agricultural Universities (SAU‟s), while
the logistic support will be provided by Karnataka State Seed Corporation (KSSC) and
Karnataka State Seed Certification Agency (KSSCA). It is proposed that the newly released
seeds by private organizations should be brought under compulsory certification. This
certification procedure should be such that the commercial interests of the producer
companies are safeguarded with regard to disclosure of the names of parental lines. It is also
proposed to establish a Custom Hiring Centre at each Gram Panchayat for custom hiring of
farm equipments as it reduces the production cost and also increases the productivity of land.
The panchayats can hire out the implements and ensure that the farming operations are
carried out on time.

The policy gave greater importance to organic farming and has suggested several
steps to encourage the organic farming. The policy proposed to provide incentives to organic
farmers. It is also proposed that organic farming should be made compulsory in 40% of the
government land used for farming. It is suggested that the food provided in Anganawadi
should be prepared from organic farm product. The policy proposed for the identification of
Organic Farming Systems for each Agro-Climatic region, scientifically analyzed and
recommended through a special publication entitled Organic Package of Practices. Organic
Seed Banks should be opened at each Raitha Samparka Kendra and Panchayat Office. Local
level Farmers Committee will manage these. Organic Farmers Associations will be promoted
in order to facilitate certification of the products. Subsidy scheme will be prepared for
harvesting, collection, processing and marketing expenditure relating to Organic Farm

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Products. Organic Farming System will be taken up under special extension programme and
popularized through mass media.

The policy has rightly identified the need for improving the return on investment in
agriculture inorder to provide incentives to the producers. Ago-processing plays an important
role in value adding to the farm produce so that the returns will be more. The policy suggests
several measures to improve food processing units. A subsidy scheme is proposed to be
developed in order to establish processing units in the backward regions on the lines of the
scheme presently operating in the industrial sector. A complete technical know-how will be
provided by the state to establish these units and the project proposal will be scrutinized by
experts of processing, both in financial and technical fields. A special Advisory Cell is
proposed to be established in Karnataka State Agricultural Produce Processing and Export
Cooperation (KAPPEC). KAPPEC will also provide the backup facilities and help to build
the forward and backward linkages for agro processing.

Animal husbandry is one of the important allied sectors to provide income to the
farmers. Considering the importance of this activity, the policy suggested several measures to
improve the sector to make it more profitable for farmers. The policy suggested for the
establishment of Livestock Feed and Fodder Corporation that will involve self-help groups
for breeds, purchase of inputs and marketing of the products, this Corporation will help the
livestock farmers to deal with the exigencies during distress. The policy suggested for the
involvement of private investment for promotion and integration of supply chain in the sector
by providing enough support and incentives to ensure remunerative prices for producers.

The policy also concentrated on the problems related to marketing and prices and has
suggested measures to improve the agriculture market and prices in the state. The policy
suggested for the reviews of Karnataka Agricultural Produce Marketing (Regulation) Act,
1966, to give incentives for setting up regional commodity exchanges, auction houses,
terminal markets under Public-Private Partnership (PPP). The promotion of marketing
infrastructure development has receive utmost importance with a view to reduce quantitative
and qualitative losses and improve the efficiency of marketing services. Creation of scientific
grading facilities at market yards and in production centers to ensure supply of quality
products are suggested. Private as well as co-operative sectors will be encouraged in this
endeavour.

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 The policy suggested to review the methodology used for the calculation of Minimum
Support Prices (MSP) periodically in consolation with the stake holders.

3.9.5 Integrated Agribusiness Development Policy 2011

Karnataka state has taken initiatives for developing sustainable agribusiness through
„Integrated Agribusiness Development Policy 2011‟. This policy included agriculture and
allied sector, like horticulture, fisheries, animal husbandry, sericulture and food processing.
This policy document included several interventions including infrastructure and industrial
segments. The policy addresses issues relating to agriculture starting with issues relating to
production to the issue of processing, marketing and export.

3.9.5.1 Objectives of the policy

1. Promote sustainable agriculture, and enhanced the productivity, better realization to

farming community.

2. Development of agro based industry including Food Processing units.

3. Encourage the research, skill development and employment generation.

4. Boosting agro exports of the state.

5. Investments in Agriculture and allied sectors.

6. Prepare investor friendly policies and regulatory framework.

The policy emphasis on the adoption of efficient, eco friendly and sustainable crop
production and protection techniques to manage the natural resources in sustainable manner.

The policy focuses on development of agro based industries. It suggested for the
improvement of infrastructure for storage, transportation and processing of food produce, to
minimising the wastages.

The policy suggest the promotion of research in crop sciences, horticulture, veterinary
science, animal science, dairy science, food packaging technology etc. for employment
generation.

In order to boost the agro export the policy aimed at creating new product lines and
create new markets with an emphasis on improving the global competitiveness of small scale
agro based units. The policy also emphasised the need for the involvement of private sector in
developing agricultural infrastructure. Karnataka Agribusiness Development Corporation

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(KABDC) was established to promote value added agro and food exports, conduct regular
investors meet etc.

3.9.6 Karnataka Agriculture Marketing Policy 2013

Government of Karnataka announced a state level Karnataka Agriculture Marketing

Policy in 2013 to address the marketing related issues of agriculture sector.

3.9.6.1 Objectives of the policy

The important objectives of this policy as presented in the policy document are

1. Reduction or elimination of barriers to participation in markets to foster competition

and efficient determination of price and also linking the primary market in the state to
the national market for the benefit of all stake holders in the marketing chain.

2. Address the risks associated with clearing and settlement that arise in course of
marketing of produce by the farmer or by the subsequent buyer, through technology
solutions.

3. Encourage and promote primary value addition through aggregation, grading and
packaging at the village level through farmer self help groups / societies / associations
/ producer companies to respond to increasing and changing market demand in
domestic, regional and international markets.

4. Enhance the skill levels of all stakeholders in the marketing system through well
designed capacity building intervention efforts.

5. Improve access to finance to all market participants, scientific storage and

preservation of commodities, encouraging investment in infrastructure for market
access, and enabling primary value addition of the commodities.

6. Encouraging setting up new institutions and strengthening of existing ones to provide

state of the art facilities to all stakeholders, fostering self-help groups and cooperative
ventures for improving the bargaining and holding capacity of farmers to handle the
challenges in marketing.

7. Establishment of a progressive regulatory environment that provides an environment

for public and private initiatives to function in tandem for the benefit of all
stakeholders, with the government playing an enabling policy making role.

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 8. Implementation of all Farmer friendly provisions of the Karnataka Agricultural
Produce Marketing (Regulation and Development) Act, 1966 to safe guard the
interests of the farmers.

In order to operationlize the above policy, the Government of Karnataka has initiated
several interventions. One of the initiatives is setting up a comprehensive electronic auction
system in the regulated markets for transparent price determination. To increase competition
in the auction of the agricultural produce, administrative processes with regard to license
would be simplified and automated for improved efficiency and conditions that restrict
participation would be removed. Encourage the private markets to provide services to farmers
and other participants etc.

Review of agricultural policy adopted in Karnataka reveals the efforts made by the
Government to address the issues faced by the agriculture sector. Starting with the first
agriculture policy in 1995, there is a gradual shift in making the policy as comprehensive as
possible. One important observation is that the policy makers have identified the importance
of addressing the issues of allied sectors in promoting the agricultural sector. Importance was
given to promotion of livestock which works as complementary. It is also observed that the
policy makers took note of the global trends in the making of subsequent policies. For
example encouragement to private participation, introduction of electronic auctioning system
etc are some such initiatives addressed. Similarly the sustainability issues were addressed in
promoting organic farming through Organic Farming Policy 2004.

The policy makers have identified the changing marketing problems of agricultural
produce in a globalized economy and the need for promoting processing of agricultural
produce to increase returns to the farmers. A separate policy for the promotion of
agribusiness development, Agri Business Development Policy (2011) was made to promote
agribusiness in the state. The agricultural policy 2006 is a comprehensive policy which
considered several issues i.e. the need for dissemination of scientific knowledge by bridging
the gap between the scientists and the land users, the need for land rights, the need for
promotion of high value horticulture crops, provision of appropriate transportation etc. the
latest in the series of policies is the introduction of Karnataka Agricultural Marketing Policy
2013 which addressed the marketing needs in a globalized economy.

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3.10 INITIATIVES

Government has taken several initiatives to improve soil fertility they are as follows

3.10.1 Programmes
Several programmes were taken up by the government to implement the policy. Some
of them are, conversion of 100 ha area into organic cultivation (organic village/site),
conversion of state government and state agricultural universities farms into organic
cultivation, documentation of existing organic farming practices to develop package of
practices, research in organic farming, training, publicity & propaganda, organizing trade
fairs and organic farming exhibitions in krishimelas, market development for organic produce
etc.

3.10.1.2 Organic Village/Site Programme

The first phase of organic village/site programme was initiated in the year 2004-05 at
district level to establish model organic farming site in around 100 ha area in each of the
districts. Based on the results and success of organic village/site programme at district level,
the programme was extended to each taluk during 2006-07. Three agricultural universities
were given the responsibility of evaluating the project and they gave a positive impact of the
programme. Based on this evolution and the demand from the organic farmers and local
NGO involved in organic farming, the programme was extended to convert another 100 ha
farm into organic farms in each taluks during 2010-11.

3.10.1.3 Savayava Bhagya Yojane

It is a mega programme initiated during the later part of 2013-14. It is an extension of

the earlier organic village/site programme to hobli level with few modifications in its
implementation. In the extended programme provisions are made for developing good
marketing linkages and market development for organic products. The programme is being
implemented in association with the NGOs selected from each taluk through e-tendering. The
selected NGO is entrusted with the responsibility of bringing around 100 ha under organic
farming in each hobli of the taluk. During the year 2014-15 certification of organic products,
evaluation and monitoring of the organic farming programme, publicity and awareness about
programmes, research in organic farming etc. were initiated.

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3.10.1.4 Bhumi Tayiya Arogya

The programme was initiated with an objective to improve the soil health. It is being
implemented under Public Private Partnership (PPP) where in the Tungabandra project,
Upper Krishna project area, and Malaprabha-Ghataprabha project regions where soil has
degraded. While 20% is contributed by the land owner and 80% is contributed by the state
government. The main objective of this programme is to cover 35,000 hectares land per year.
Manual intervention to restore soil health, agronomic conservation, integrated plant nutrient
system, bio inoculums and application of green manure to improve the soil health are
encouraged by the government under this programme. The policy focused to provide soil
health card to individual farmers at nominal price. This card will depict the present soil
nutrient content, deficiencies as well as the requirement of various nutrients for the soil to
bring it back to optimum fertility level.

3.10.1.5 Bhoomi Project

Since maintaining proper land records is a pre requisite for ensuring property rights,
priority is given to develop computerized land record system under the programme called
Bhoomi.

3.10.1.6 Bhoochethana
With the objective of increasing the productivity of selected rain fed crops by 20%,
Karnataka government has initiated a mission mode project called Bhoochethana from the
year 2009-10. The partners of this project are Karnataka State Department of Agriculture,
Watershed Development, UAS Banglaore/Dharwad/ Raichur and ICRISAT, Hyderabad is the
technical consultant.

The main strategies are soil test based nutrition management with major thrust on
micro nutrients, distribution of inputs at 50% subsidy at cluster village level, farmer field
schools, wide publicity about soil fertility management through writings, posters, village
meetings and mass media etc.

While the project was started in six districts in 2009-10 and extended to 16 districts
by 2010-11 covering 12.00 lakh hectares during kharif season, 5030 villages and 8.50 lakh
farmers. During 2011-12 kharif the programme was extended to all 30 districts covering 25.4
lakh hectares and 20 lakh farmers. The yield enhancement of 29-41% was observed in the
treated areas.

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 Bhoochethana phase 2 was approved for five years from 2013-14 to 2017-18. During
2013-14, 12490 Farmer Facilitators (FF) have been appointed for transfer of technology
under this scheme. With the help of there facilitators 11000 Farmers Field Schools (FFS)
were organized and several training programmes were organized.

From 2013-14 onwards Bhoochethana plus scheme was initiated from 2013-14
onwards for a period of four years with a focus to improve the livelihoods of rural population
in Karnataka in collaboration with international institutions like ICRISAT, IFPRI etc. The
scheme is in implementation in Bijapur, Chikkamagalur, Raichur and Tumkur districts on
pilot basis.

3.10.1.7 National Project on Management of Soil Health and Fertility (NPMSHF)

National Project on Management of Soil Health & Fertility (NPMSHF) has been
introduced in 2008-09 to promote balanced and judicious use of fertilizer in conjunction with
organic manure on soil test basis.

The programme was formulated based on the recommendations of the task force on
balanced use of fertilizers. The scheme has been approved for implementation during the 11th
five year plan with a total outlay of Rs 429.85 crores for various components such as setting
up of additional Soil Testing Laboratories (STLs), strengthening of 315 state STLs having
micro nutrients analysis facility, capacity building through training of STL staff/ Extension
officers, farmers field demonstration and workshops, creation of databook for site specific
balanced use of fertilizers, adoption of village by STLs through frontline field
demonstrations, preparation of digital district soil maps and GPS based soil fertility
recommendations by ICAR/SAUs etc.

The estimated budget for 2012-13 was Rs 30 crores. Out of this Rs 10.89 crores has
been released by 14.12.2012. The proposed outlay for the year 2013-14 was Rs. 2470.00
crores.

3.10.1.8 Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM)

In order to promote the production of oilseeds and other dry crops to meet the
domestic requirement and promote exports an integrated scheme for promotion of oilseeds,
pulses and maize was introduced during 2004. The focus was on eight edible oilseeds viz.
groundnut, rapeseed, mustard, soyabean, sunflower, sesame, safflower and niger and two
non-edible oilseeds, castor and linseed.
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 This scheme is being implemented in 14 major states for oilseeds and pulses, in 15
states for maize and in 8 states for Oil palm. Pulses component of ISOPOM has been merged
with NFSM-Pulses w.e.f 1.4.2010 to provide focused approach for pulses production
programme.

During the Eleventh Plan, Department of Agriculture and Cooperation restructured

the Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oilpalm and Maize
(ISOPOM). Based on the experience gained in the implementation of ISOPOM, the following
modifications were made to ISOPOM in 2007-08. The assistance on production of
foundation and certified seed has been enhanced from Rs. 500/- per qtl to Rs. 1000/- per qtl
and the subsidy was enhanced fro Rs. 800/- per qtl to Rs. 1200/- per qtl during 11th Plan
Period. The Private Sector seed producing agencies have been involved in the distribution of
Certified Seeds of Oilseeds besides NSC, SFCI, NAFED, KRIBHCO and IFFCO.

The area expansion programme of ISOPOM has been launched under Rashtriya
Krishi Vikas Yojana (RKVY) as per the announcement made by the Union Finance Minister
in Budget Speech 2011-12. Besides RKVY, the support for committed expenditure on oil
palm components is being implemented under ISOPOM.

The estimated budget for 2012-13 was Rs. 575 crores. Out of this Rs. 341.90 crores
has been released by 14.12.2012. The proposed outlay for the year 2013-14 was Rs. 661.25
crores.

3.10.1.9 National Project on Promotion of Organic Farming

National Project on Organic Farming has been launched as a central sector scheme
during Xth Plan on Pilot basis with an outlay of Rs. 57.05 crores. The scheme has continued
in the XIIth Plan. According to the plan document the following are the main objectives of
this project.

1. To facilitate, encourage and promote development of organic agriculture in the

country.

2. To encourage production and use of organic and biological sources of nutrients like
biofertilizers, organic manure, compost for sustained soil health and fertility and
improving soil organic carbon and to promote production and use of biopesticides,
bio-control agents etc. as alternative inputs in organic farming.

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 3. To act as nodal agency for implementation of quality control regime for biofertilizers
and organic fertilizers, as per the requirement of FCO.

4. To run short term certificate courses on organic system and on-farm resource
management.

5. To initiate research on validation of established indigenous practices, inputs and

technologies leading to development of package of practices.

6. To act as central information and data collection centre on all aspects of organic
farming and dissemination of information through print and electronic media.

7. Awareness creation through seminars/conferences/trade fairs and publicity through

print and electronic media.

The estimated budget for 2012-13 was Rs. 21 crores. Out of this Rs. 5.90 crores has
been released by 14.12.2012. The proposed outlay for the year 2013-14 was Rs. 56.14
crores.

3.11 CONCLUSIONS

Evolution of agricultural policy both at the national and state level and the
programmes implemented to operationalize the policy objectives have been discussed in this
chapter. It is observed that there is an increased awareness and efforts to promote sustainable
agriculture focusing on conservation of natural resources. Land as an important resource in
the sustainability of agricultural production has been given major thrust during the eleventh
and twelfth plan periods.

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