Traditional Livelihoods and

Agriculture

Ms. Harleen Kaur

India’s Diversity and Business
SGRRITS
 Most of the people in villages earn their living either
through agriculture or handicrafts. Since the land
available to each family has remained the same and the
number of family members has grown, supporting all
of them through agriculture alone is becoming difficult.
 The government is addressing these problems by taking
steps to make better farming techniques available to
increase crop production from the same piece of land
 The history of agriculture in India dates back to Indus
Valley Civilization Era and even before that in some
parts of Southern India
 Crops cultivated in India 3000 to 6000 years ago, include
sesame, linseed, safflower, mustards, castor, mung bean,
black gram, horse gram, field pea, grass pea (khesari),
fenugreek, cotton, jujube, grapes, dates, jackfruit, mango,
mulberry, and black plum.
 Indian peasants had also domesticated cattle, buffaloes,
sheep, goats, pigs and horses thousands of years ago.
 Indian agriculture began as a result of early cultivation of
plants, and domestication of crops and animals.
 Settled life soon followed with implements and techniques
being developed for agriculture.
 Indian products soon reached trading networks and foreign
crops were introduced.
 The middle ages saw irrigation channels reach a new level of
sophistication, and Indian crops affected the economies of other
regions of the world
 Vedic literature provides some of the earliest written record of
agriculture in India.
 Rigveda hymns, for example, describes plowing, fallowing,
irrigation, fruit and vegetable cultivation.
 Other historical evidence suggests rice and cotton were
cultivated in the Indus Valley, and plowing patterns from
the Bronze Age have been excavated at Kalibangan in Rajasthan
 Agriculture and allied sectors
like forestry and fisheries accounted for 13.7% of the GDP (gross
domestic product) in 2013
 Over 2500 years ago, Indian farmers had discovered
and begun farming many spices and sugarcane
 The Persians, followed by the Greeks, discovered the
famous "reeds that produce honey without bees" being
grown
 People in India had invented, by about 500 BC, the
process to produce sugar crystals. In the local language,
these crystals were called khanda (खण्ड), which is the
source of the word candy
 Two years of severe drought in 1965 and 1966
convinced India to reform its agricultural policy and
that they could not rely on foreign aid
 This ushered in India's Green Revolution. It began with
the decision to adopt superior yielding, disease resistant
wheat varieties in combination with better farming
knowledge to improve productivity.
 The state of Punjab led India's green revolution and
earned the distinction of being the country's bread
basket.
 The initial increase in production was on the irrigated
areas of the states of Punjab, Haryana and
western Uttar Pradesh
 A hectare of Indian wheat farm that produced an
average of 0.8 tonnes in 1948, produced 4.7 tonnes of
wheat in 1975 from the same land.
 With agricultural policy success in wheat, India's Green
Revolution technology spread to rice.
 However, since irrigation infrastructure was very poor,
Indian farmer innovated with tube-wells, to
harvest ground water.
 The technology spread in the 1970s and 1980s to the
states of eastern India — Bihar, Odisha and West
Bengal
 The lasting benefits of improved seeds and improved
farming technologies now largely depends on whether
India develops infrastructure such as irrigation
network, flood control systems, reliable electricity
production capacity, all-season rural and urban
highways, cold storage to prevent spoilage, modern
retail, and competitive buyers of produce from Indian
farmers.
 This is increasingly the focus of Indian agriculture
policy.
 Indian irrigation infrastructure includes a network of
major and minor canals from rivers, groundwater well-
based systems, tanks, and other rainwater harvesting
projects for agricultural activities.
 In 2010, only about 35% of agricultural land in India
was reliably irrigated. About 2/3rd cultivated land in
India is dependent on monsoons.
 Dams used for irrigation projects have helped provide
drinking water to a growing rural population, control
flood and prevent drought-related damage to
agriculture.
 Over 58 per cent of the rural households depend on
agriculture as their principal means of livelihood.
 Agriculture, along with fisheries and forestry, is one of the
largest contributors to the Gross Domestic Product (GDP).
 India is the largest producer, consumer and exporter of
spices and spice products.
 India's fruit production has grown faster than vegetables,
making it the second largest fruit producer in the world.
 India's horticulture output, comprising fruits, vegetables
and spices, is estimated to be 283.4 million tonnes (MT) in
2015-16
 It ranks third in farm and agriculture outputs.
 The agro industry in India is divided into several sub
segments such as canned, dairy, processed, frozen food to
fisheries, meat, poultry, and food grains.
 The Department of Agriculture and Cooperation under
the Ministry of Agriculture is responsible for the
development of the agriculture sector in India. It manages
several other bodies, such as the National Dairy
Development Board (NDDB), to develop other allied
agricultural sectors.
Market Size
 Rising private participation in Indian agriculture, growing
organic farming and use of information technology are some
of the key trends in the agriculture industry.
 India's foodgrain production has increased marginally to
252.23 million tonnes (MT) in the 2015-16 crop year.
Production of pulses is estimated at 17.06 million tonnes.
 With an annual output of 146.31 MT, India is the largest
producer of milk, accounting for 18.5 per cent of the total
world production.
 India, the second-largest producer of sugar, accounts for 14
per cent of the global output. It is the sixth-largest exporter
of sugar, accounting for 2.76 per cent of the global exports.
 India is a leading country in coconut production and
productivity in the world, with annual production of 2,044
crore coconuts and the productivity of 10,345 coconuts per
hectare as on 2015-16.
 Spice exports from India are expected to reach US$ 3 billion
by 2016–17 due to creative marketing strategies, innovative
packaging, strength in quality and strong distribution
networks.
 The spices market in India is valued at Rs 40,000 crore (US$
5.87 billion) annually, of which the branded segment
accounts for 15 per cent.
 In fact, the Spices Board of India has decided to set up a
spice museum at Willingdon Island in Kochi to attract and
educate tourists and seafarers about the history and growth of
Indian spices industry.
 Intertek Group, a UK-based total quality assurance provider,
has launched an agricultural technology (Agritech)
Laboratory in Hyderabad
 ITC Ltd, one of India's leading fast-moving consumer goods
(FMCG) company, plans to make Andhra Pradesh a hub for
its agricultural business operations.
 The Small Farmers’ Agri-Business Consortium (SFAC),
January 1994 plans to organise camps in Madhya Pradesh
and Chhattisgarh for agri-business entrepreneurs.
 Mahindra & Mahindra (M&M), India’s leading tractor and
utility vehicle manufacturer, announced its entry into pulses
retailing under the brand ‘NuPro’.
 Fertiliser cooperative IFFCO launched a joint venture with
Japanese firm Mitsubishi Corp for manufacturing
agrochemicals in India.
 Oman India Joint Investment Fund (OIJIF), a joint venture
(JV) between the State Bank of India (SBI) and State
General Reserve Fund (SGRF), invested Rs 95 crore (US$
13.94 million) in GSP Crop Science, a Gujarat-based
agrochemicals company.
 Acumen, a not-for-profit global venture fund, has invested
Rs 11 crore (US$ 1.7 million) in Sahayog Dairy, an
integrated entity in the segment, based at Harda district in
Madhya Pradesh.
 2.85 million hectares to be brought under irrigation
 Rs 287,000 crore (US$ 42.11 billion) grant in aid to be given
to gram panchayats and municipalities
 100 per cent village electrification targeted by May 01, 2018.
 The government has set an ambitious target of producing a
record 270.1 MT of foodgrains in 2016-17, 7 per cent higher
than the 252.23 MT of production estimated for 2015-16.
 The Government of India has started work on 99 major and
medium irrigation projects, slated to be completed by 2019.
 To support the organic farming scheme ‘Paramparagat Krishi
Vikas Yojana’.
 Continued support to Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA) and the creation
of a unified national agriculture market to boost the incomes
of farmers.
 The Government of India allocated sum of Rs 5,300 crore in
‘Pradhan Mantri Krishi Sinchai Yojana’ and other areas.
 The Department of Agriculture Research & Education
(DARE) and the Department of Animal Husbandry, Dairying
& Fisheries (DAHD&F) under the Ministry of Agriculture
have signed MOUs/agreements with other countries, taking
the number of partnerships with other countries to 63.
 These agreements would provide better agricultural facilities
in areas such as research and development, capacity building,
post-harvest management, value addition/food processing,
plant protection, animal husbandry, dairy and fisheries. The
agreements could help enhance bilateral trade as well.
 It allocated Rs 25,000 crore for the Rural Infrastructure
Development Fund (RIDF)
 Rs 1,500 crore for the long-term rural credit fund, Rs 45,000
crore for the short-term cooperative rural credit finance fund
and Rs 25,000 crore for the short-term Regional rural bank
(RRB) refinance fund.
 To increase pulse production from nearly 17.06 MT in 2015-
16 to 24 MT in 2020-21
 The Cabinet Committee on Economic Affairs (CCEA) has
approved ‘Blue Revolution’, an umbrella scheme for
integrated development and management of fisheries by
Government of India, with total financial outlay of Rs 3,000
crore (US$ 440.15 million) for a period of five years.
 India and Lithuania have agreed to intensify agricultural
cooperation, especially in sectors like food and dairy
processing.
 The State Government of Telangana plans to spend Rs 81,000
crore (US$ 11.88 billion) over the next three years to complete
ongoing irrigation projects and also undertake two new projects
for lifting water from the Godavari and Krishna river.
 The National Dairy Development Board (NDDB) announced 42
dairy projects with a financial outlay of Rs 221 crore (US$ 32.42
million) to boost milk output and increase per animal production
of milk.
 According to the National Institution for Transforming India
Aayog (NITI Aayog), India’s agriculture sector is expected to
grow 6 per cent in FY 2016-17 in case of normal monsoon during
the June-September period. The 12th Five-Year Plan estimates the
foodgrains storage capacity to expand to 35 MT. Also, a 4 per
cent growth would help restructure the agriculture sector in India
in the next few years.
 According to the economic survey 2015-2016, yields of
major crops like paddy, pulses and wheat are low due to
unirrigated land.
 As per the 2010 FAO world agriculture statistics, India is the
world's largest producer of many fresh fruits and
vegetables, milk, major spices, select fibrous crops such
as jute, staples such as millets and castor oil seed. India is the
second largest producer of wheat and rice, the world's
major food staples.
 India exported $39 billion worth of agricultural products in
2013, making it the seventh largest agricultural exporter
worldwide
 Indian agricultural/horticultural and processed foods are
exported to more than 100 countries, primarily in the Middle
East, Southeast Asia, SAARC countries, the EU and the
United States.
 India ranked in the world's five largest producers of over
80% of agricultural produce items, including many cash
crops such as coffee and cotton, in 2010.
 India is the world's second or third largest producer of
several dry fruits, agriculture-based textile raw
materials, pulses, farmed fish, eggs, coconut, sugarcane and
numerous vegetables.
 In fiscal year ending June 2011, with a normal monsoon
season, Indian agriculture accomplished an all-time record
production of 85.9 million tonnes of wheat, a 6.4% increase
from a year earlier. Rice output in India hit a new record at
95.3 million tonnes, a 7% increase from the year earlier.
 Indian farmers, produced about 71 kilograms of wheat and
80 kilograms of rice for every member of Indian population
in 2011.
 It has become one of the world's largest supplier of rice,
cotton, sugar and wheat. India exported around 2 million
metric tonnes of wheat and 2.1 million metric tonnes of rice
in 2011 to Africa, Nepal, Bangladesh and other regions
around the world.
 Aquaculture and catch fishery is amongst the fastest growing
industries in India. Between 1990 and 2010, the Indian fish
capture harvest doubled, while aquaculture harvest tripled.
 As of 2011, India had a large and diverse agricultural sector,
accounting, on average, for about 16% of GDP and 10% of
export earnings. India's arable land area of 159.7 million
hectares (394.6 million acres) is the second largest in the
world, after the United States.
 India has shown a steady average nationwide annual increase
in the kilograms produced per hectare for some agricultural
items, over the last 60 years due to India's green revolution,
improving road and power generation infrastructure,
knowledge of gains and reforms.
 India is among the top three global producers of many crops,
including wheat, rice, pulses, cotton, peanuts, fruits and
vegetables.
 Worldwide, as of 2011, India had the largest herds of buffalo
and cattle, is the largest producer of milk and has one of the
largest and fastest growing poultry industries
 Agriculture and allied sectors
like forestry and fisheries accounted for 13.7% of the
GDP (gross domestic product) in 2013
 Tamil Nadu achieved highest yields in rice and sugarcane
 Haryana in wheat and coarse grains
 Karnataka in cotton, Bihar in pulses, while other states do
well in horticulture, aquaculture, flower and fruit plantations.
 These differences in agricultural productivity are a function
of local infrastructure, soil quality, micro-climates, local
resources, farmer knowledge and innovations.
 One study suggests Indian agricultural policy should best
focus on improving rural infrastructure primarily in the form
of irrigation and flood control infrastructure, knowledge
transfer of better yielding and more disease resistant seeds.
 Additionally, cold storage, hygienic food packaging and
efficient modern retail to reduce waste can improve output
and rural incomes
 It was announced on July 28, 2000.
 To strengthen rural infrastructure, faster agriculture growth,
fair standard of living to farmers, discourage migration to
urban areas.
 Features
 Privatisation of agriculture and price protection of farmers
for agriculture growth
 Private sector investment in agriculture research, post harvest
management and marketing
 Formulation of commodity wise strategies to protect farmers
from undue price fluctuations and to promote exports
 Features
 The policy envisages evolving a ‘National Livestock
Breeding Strategy’ to meet the requirement of milk, meat,
eggs, to enhance the role of draught animals as a source for
farming operations
 Development of animal husbandry, poultry, dairy,
acquaculture.
 Dismantling the restrictions on movement of agricultural
commodities.
 Domestic agriculture market to be liberalised.
 Rural electrification
 Features
 Use of new and renewable sources of energy for irrigation
and other agricultural purposes would be encouraged.
 Progressive institutionalisation of rural and farm credit.
 Package insurance policy to the farmers in case of
fluctuations in prices.
 Sustainable agriculture, food security, transfer of technology,
investments in agriculture, institutional structures, risk
management and reforms.
 Following are some schemes by which farmers benefit
indirectly:-
 Rashtriya Krishi Vikas Yojana
 Integrated Nutrient Management in rural areas
 Seed Village Scheme
 National Watershed Development Project for Rainfed
Areas (NWDPRA)
 Promoting use of Informatics in Agriculture in rural areas
 Promotion and Strengthening of Agricultural
Mechanization through Training, Testing and
Demonstration in rural areas
 Livestock Health in rural areas
 National Project for Cattle and Buffalo Breeding
 Assistance for Modernisation of Slaughter Houses and
Carcass Utilization Plants
 Assistance to States for Feed and Fodder Development
 Livestock Insurance
 Establishment/Modernisation of Rural Slaughterhouses
 Livestock Census
 Integrated Sample Survey Scheme for Estimation of Major
Livestock Products
 Directorate of Animal Health (National Programme for
Prevention of Animal Diseases)
 Central Cattle Breeding Farms
 Central Minikit Testing Programme on Fodder Crops
 Central Poultry Development Organisation
 Regional Stations For Forage Production & Demonstration
 Central Herd Registration Scheme
 Intensive Dairy Development Programme (IDDP)
 Strengthening infrastructure for quality & clean milk
production
 Evaluation study report of strengthening infrastructure for
quality & clean milk production
 Assistance to Cooperatives
 Dairy/Poultry venture capital funds
 Evaluation study report of Dairy/Poultry venture capital
funds
 Milk and Milk Product Order'1992
 Centrally Sponsored Scheme on "Development of Inland
Fisheries and Aquaculture"
 Centrally Sponsored National Scheme on "Welfare of
Fishermen"
 Centrally Sponsored Scheme on "Fisheries Training And
Extension"
 Credit is required by farmers for purchase of seeds,
agricultural machinery, land and other requirements.
 To avoid getting into the clutches of moneylenders, it is
better to avail the facilities of credit through government
sponsored schemes.
 The National Bank for Agriculture and Rural Development
(NABARD), July 12, 1982 is the apex bank tasked for
providing financial support for agriculture and other
development activities in rural India.
 Kisan Credit Card Scheme, 1998 is another initiative to
provide credit to farmers for their short term needs.
 Gram Santosh
 Gram Suraksha
 Gram Suvidha
 Gram Sumangal
 Gram Priya
 A Central Sector Scheme namely, National Agricultural
Insurance Scheme (NAIS) is being implemented as a
part of risk management in agriculture to provide
financial support to the farmers in the event of failure
of crops as a result of natural calamities, pests and
diseases.
 The Scheme covers all the food crops (cereals, millets
and pulses), oilseeds and annual
commercial/horticultural crops
 Largest Total Food Grains producing state in India is Uttar
Pradesh
 Largest Rice producing state in India is West Bengal
 Largest Wheat producing state in India is Uttar Pradesh
 Largest Maize producing state in India is Andhra Pradesh
 Largest Coarse Cereal producing state in India is Karnataka,
Rajasthan
 Largest Oilseeds producing state in India is Gujarat
 Largest Rapeseed & Mustard producing state in India is
Rajasthan
 Largest Soyabean producing state in India is Madhya Pradesh
 Largest Sunflower producing state in India is Karnataka
 Largest Sugarcane producing state in India is Uttar Pradesh
 Largest Sugar producing state in India is Maharashtra
 Largest Cotton producing state in India is Gujarat
 Largest Jute producing state in India is West Bengal
 Largest Horticulture Products producing state in India is West
Bengal
 Largest Vegetables producing state in India is West Bengal
 Largest Fruits producing state in India is Andhra Pradesh
 Largest Loose Flowers producing state in India is Tamil Nadu
 Largest Cut Flowers producing state in India is West Bengal
 Largest Total Spices producing state in India is Andhra
Pradesh
 Largest Total Plantation Crops producing state in India is
Tamil Nadu
 Largest Banana producing state in India is Tamil Nadu
 Largest Guava producing state in India is Madhya Pradesh
 Largest Grapes producing state in India is Maharashtra
 Largest Apple producing state in India is Jammu & Kashmir
 Largest Nut producing state in India is Karnataka
 Largest Cocoa producing state in India is Kerala
 Largest Coconut producing state in India is Tamil Nadu
 Largest Cashew nut producing state in India is Maharashtra
 Largest Citrus, Lemon, Mosambi producing state in India
is Andhra Pradesh
 Largest Orange producing state in India is Punjab
 Largest Litchi producing state in India is Bihar
 Largest Mango producing state in India is Uttar Pradesh
& Andhra Pradesh
 Largest Pineapple producing state in India is West
Bengal
 Largest Brinjal producing state in India is Odisha
 Coffee- Karnatka, Kerala
 Coriander- Rajasthan, Andhra Pradesh
 Millets- Madhya Pradesh, Andhra Pradesh
 Pulses- Rajasthan, Maharashtra, Madhya Pradesh, Orissa
 Tea- Assam, West Bengal
 Tobacco- Maharashtra, Tamil Nadu
Agriculture productivity in India, growth in average yields from 1970 to 2010

Average YIELD, 1970- Average YIELD, 1990- Average YIELD,

Crop
1971 1991 2010–2011

kilogram per hectare kilogram per hectare kilogram per hectare

Rice 1123 1740 2240

Wheat 1307 2281 2938

Pulses 524 578 689

Oilseeds 579 771 1325

Sugarcane 48322 65395 68596

Tea 1182 1652 1669

Cotton 106 225 510