37 Agricultural Planning in India

Dr. Taruna Bansal

Component II – e-Text

Agricultural Planning in India

1. Introduction

At the time of independence in 1947 India inherited a stagnant agriculture; therefore, the first task of the Government was to initiate development in agriculture. The new government initiated agricultural policy under a planning framework both at the State and Central levels. The planning started with some institutional changes within agriculture like abolition of intermediaries or even elimination of Zamindars and Jagirdars. The first three Five-Year Plans concentrated on these measures. It was only in the mid-Sixties, a new technology in the form of high-yielding varieties (HYVs) was introduced for cereals. Another area where public sector stepped up was irrigation and promotion agricultural research and education. The Indian Council of Agricultural Research (ICAR) and the State Agricultural Universities (SAUs) were established for the development of agricultural research system. Successive Five-Year Plans aimed at improving the infrastructure through irrigation, stepping-up the use of fertilisers, improved varieties of seeds implements and machinery and supply of credit. As a result there has been a significant increase in the use of modern inputs leading to higher productivity and production.

In the following section, the initiatives under different Five year plans have been discussed.

2. Agriculture In Five Year Plans

2.1 First Five-Year Plan (1951-56):

In the First Five-Year Plan, agriculture was given the topmost priority. The notable features of the First Plan were:

a. the abolition of zamindari system,

b. the launching of the community development programme,

c. mgrowing more food campaign along with improvement in other related spheres like marketing, fisheries, animal husbandry,

d. soil conservation and forestry

As a result there was a remarkable increase in agricultural production during this period. The targets sent out for the Plan were almost achieved, and, even in some cases, exceeded the targets.

2.2 Second Five-Year Plan (1956- 61):

The agricultural programmes in the second five year plan were proposed to supply sufficient food to the increased population. The main aim of this plan was to bring inter-dependence between agricultural and industrial development. And subsequently, the emphasis of planning shifted from agriculture to industry resulting in unsatisfactory agricultural production; the country had to import food grains from abroad to overcome the food shortage. One important feature of this plan was the provision for minor irrigation in the agricultural programmes of States.

2.3 Third Five-Year Plan (1961-66):

In formulating agricultural programmes for the Third Plan, the guiding consideration was that the agricultural efforts should not be impeded in any manner for want of financial or other resources. The main objective was to achieve self-sufficiency in food grains and to increase the agricultural production to meet the needs of industry and export. The principal technical programmes for increasing agricultural production were concentrated around:

a. irrigation,

b. soil conservation, dry farming and land reclamation,

c. supply of fertilisers and manures

d. seed multiplication and distribution,

e.  plant protection,

f.  better ploughs and improved agricultural implements, and adoption of scientific agricultural practices.

A serious gap in the agricultural programmes undertaken during the First and Second Plans had been in the field of improved agricultural implements. There was general recognition of the importance for scientific agriculture of improved tillage and harvesting practices, but specific action had been slow and insufficient. The broad features of the programme for the adoption of improved agricultural implements proposed for the Third Plan were:

a. Adequate supplies of iron and steel of the categories required for agricultural implements

b. The principal implements were recommended in each State for popularisation that had been selected provisionally by groups of experts.

c. Four regional research, testing and training centres for improved agricultural implements were set up by the Indian Council of Agricultural Research as part of its programme in the Second Plan, and were to be transferred to the States in which they were situated.

d. According to their conditions suitable extension arrangements were to be made by State Governments at the district and block levels for demonstrating and popularising improved agricultural implements. It would not be possible to set up such units at the block level in all the development Steps were taken to strengthen the agricultural engineering section of State Agricultural Departments.

e. With due regard to the size of the programme to be undertaken each year, assured arrangements for credit for supplying improved implements should be made. Credit should be provided both through cooperative agencies and by way of taccavi loans.

f. Agricultural workshops were established at 25 extension training centres.

g. At the State level, a Committee or a Board, including representatives from amongst farmers and manufacturers and others, for assisting in drawing up production programmes and devising suitable arrangements for distribution and ensuring supplies of raw materials was set up.

In some ways the most significant development proposed in the Third Plan, whose benefits went largely to agricultural labour, was the programme for undertaking works projects in rural areas. Under this programme, it was hoped to provide additional wage-employment in rural areas for about 100 days in the year, especially during the slack agricultural seasons. The programme concentrated on schemes for agricultural development like irrigation, flood control, land reclamation, afforestation and soil conservation, road development projects, provision of rural amenities and village housing projects.

2.4 Three Annual Plans (1966-69):

During this period, a high priority was given to minor irrigation and this was followed by adoption of a high yielding variety programme to increase agricultural production and productivity. This period is considered crucial for Indian agriculture as the Green Revolution took place during this period and the Government set up Agricultural Prices Commission (APC) to assure minimum support prices to farmers and the Food Corporation of India (FCI) for maintaining buffer-stock to overcome fluctuation in the supplies of food grains and their prices.

2.5 Fourth Five-Year Plan (1969-74):

One of the main features of this Plan was the evolution of Agricultural strategy. The first stage of the new strategy pertained to the Intensive Agricultural District Programme (IADP). It was started in 1960-61 in three districts and was subsequently extended by stages to another thirteen. In 1964-65 and subsequent years, a modified version of the same approach was extended to several other parts of the country in the form of the Intensive Agricultural Area Programme (IAAP).

In view of the importance assumed by inputs and services such as improved Seeds, chemical fertilisers, plant protection, implements and machinery, irrigation facilities and agricultural credit, several new public institutions were promoted and provided with funds to lend support to agricultural production programmes. Among these institutions was the National Seeds Corporation (NSC) which was set up in 1963. A policy of support prices for food grains came was adopted throughout the country in 1964. In the subsequent: year, the APC was set up to advise Government from time to time on appropriate price policies for agricultural commodities. In the same year the Food Corporation of India (FCI) was also established which, for the first time, sought to provide in all-India machinery for purchase of foodgrains.

The Fourth Plan therefore, had two objectives in the agricultural sector:

(i) to provide the conditions necessary for a sustained increase of food production by about 5 per cent per annum over the decade 1969-78 and

(ii) to enable a large section of the rural population including small farmers, farmers in the dry areas and agricultural labourers to participate in the process of agricultural development and share its benefit.

To achieve these objectives financial and other institutions like cooperative banks; credit societies, marketing societies and National Cooperative Development Corporation (for credit, marketing, processing and storage); the Agriculture Refinance Corporation, land development banks and Rural Electrification Corporation (for Sand reclamation, soil conservation, minor irrigation and energisation of pumpsets); agricultural credit corporations; agro-industries corporations (in connection with agricultural machinery); Food Corporation and Fertiliser Credit Guarantee Corporation (for food and fertiliser, as also storage); the Central Warehousing Corporation and State Ware (‘for storage) were set up. Even, the Indian Council of Agricultural Research (ICAR) was re-organised and steps were taken to place all the Central research institutions and those under the Commodity Committees under ICAR.

2.6 Fifth Five-Year Plan (1974-79):

During the Fifth Plan, the strategy for long term planning of the agricultural sector centred round detailed assessment and exploitation of ground and surface water, intensification in application of new technologies in agriculture, extension mechanisms and programmes for supply of inputs, apart from attention to the special needs of problem areas and vulnerable sections of the society. The Fifth Plan accorded priority for the spread of H.Y.V. cultivation, double or multiple, greater use of fertilizer pesticides and insecticides to increase agricultural production. The Plan further provided special emphasis on:

(i)  small and marginal farmers,

(ii) dry farming technique,

(iii) evolving H.Y.V. seeds for other crops like paddy,

(iv) social conservation measures on saline and alkaline soils and for desert land reclamation.

2.7 Sixth Five-Year Plan (1980-85):

The Sixth Five-Year Plan recognised that the growth of the Indian economy depends significantly on a rapid growth in agriculture and rural development. The main objective of the Plan, therefore, was to increase agricultural production, generate employment and income opportunities in rural areas and strengthen the forces of modernization for achieving self-reliance. This Plan proposed to introduce a 3-pronged strategy to improve the economic well-being of small and marginal farmers and share croppers:

   a. Improving the productivity and income from small holdings through detailed advice on land and water use based on the 4 criteria of ecology, economics, energy and environment.

b. Farmers’ own organisations for storage and marketing particularly of perishable commodities will be promoted since this will help to protect small and marginal farmers from exploitation by middlemen.

c. Diversification of opportunities for income through the introduction of subsidiary occupations under IRDP as well as lean season employment through JSREP will be undertaken so as to enhance and stabilise rural incomes.

Further, the aims of the agricultural programmes were:

a. to consolidate the gains already achieved;

b. to accelerate the pace of implementation of land reforms and institution building for beneficiaries;

c. to extend the benefits of new technology to more farmers, cropping systems and regions and to promote greater farm management efficiency through concurrent attention to cash and non-cash inputs;

d. to make agricultural growth not only an instrument of maintaining an eifective national food security system but also a catalyst of income and employment generation in rural areas;

e. to promote scientific land wateruse patterns based on considerations of ecology, economics, energy, conservation and employment generation; and

f. to safeguard the interests of both producers and consumers by attending to the needs of production, conservation, marketing and distribution in an integrated manner.

Besides growth, the Sixth Plan also laid stress on building a National Food Security System. The National Food Security System had the following major component programmes:

(a)  Ecological Security

(b)   Technological Security

(c)  Building grain reserves

(d)  Social Security

(e)  Nutrition education

    (f) Stability of prices

The plan also highlighted the importance of the institutional credit policy and proposed to establish a National Bank for Agricuture and Rural Development (NABARD). One of the important objectives of the Sixth Plan was to increase production of export-oriented agricultural and agro-based commodities so as to double our income through foreign exchange earnings. Rice, sugar, cotton, oil seeds, castor oil, tobacco, spices, cashew, tea, coffee, cardamom and marine products were recognised for export gains.

2.8 Seventh Five-Year Plan (1985-90):

The Seventh Plan aimed at an annual average increase of 4 per cent in agricultural production.

The major programme thrusts in the Seventh Plan are:

i) Special Rice Production Programme in the Eastern Region.

ii) National Oilseeds Development Project,

iii) National Watershed Development Programme for Rain fed Agriculture,

iv) Development of Small and Marginal Farmers, and

v) Social Forestry.

Apart from these attention was also given to water management, research and extension, credit institutions, agricultural price policy, and farmers’ participation. Priority was given to the development of dryland/rainfed farming with a view to raising productivity and achieving the other important objectives of reduction in poverty, unemployment and regional disparities. The main focus of development strategy was to minimise the risk to the farmers and to provide them with area-specific technolgical packages, inputs and services. Another important development was the initiation of the Agro-climatic Regional Planning Approach (ACRP) by the Planning Commission to formulate integrated development plans for agriculture and allied sectors differentiated by homogeneous agro-climatic regions.

2.9 Eighth Five-Year Plan (1992-97):

The basic objectives of the Eighth Five-Year Plan were:

(i) To consolidate the gains already achieved in agricultural productivity and production during the last 40 years

  (ii) To sustain agricultural productivity and production in order to meet the increased demands of the growing population;

(iii)  To enlarge the income of the farmers;

(iv)  To create more-employment opportunities in the agricultural sector; and

(v)  To step up agricultural exports.

Apart from these the National Agriculture Cooperative Marketing Federation (NAFED) undertook price support operations in respect of oilseeds, coarse grains, pulses, potatoes and onions. The National Watershed Development Project for Rainfed Areas (NWDPRA), initiated in the Sixth Plan, was continued during the Seventh Plan.

Schemes on soil conservation in the catchments of inter-State river valley projects, and the flood prone rivers, reclamation of alkaline (usar) soil, control of shifting cultivation and development of ravine areas were also taken up. For suitable coordination, a National Fisheries Advisory Board (NFAB) was set up in January 1989 with the objective of rendering advice in respect of development of fisheries and orderly development of fishing industry, export of marine products, etc. For overall development the Plan emphasised on development of resources and their optimum utilisation in an integrated and sustainable manner for constituent subsectors of 15 agro climatic regions.

2.10 Ninth Five-Year Plan (1997-2002):

The objectives of the Ninth Plan included priority to agriculture and rural development with a view to generate adequate productive employment and eradication of poverty, accelerating the growth rate of the economy with stable prices, and ensuring food and nutritional security for all, particularly the vulnerable sections of the society. The Plan had fixed up an annual growth rate of 4.5 per cent in agriculture through adequate strategy in agro-climatic regions

A three pronged strategy was to be followed to meet the basic food requirements of all:

Increase in overall employment and incomes by raising farm productivity and through the growth of other economic activities in the rural areas.

Provision of gainful supplementary employment through poverty alleviation schemes such as JRY, EAS. These would generate additional employment in the short run but would also help in the creation of durable rural infrastructure for more sustained employment over time.

   Distribution of foodgrains through public distribution system at concessional prices to those living below the poverty line.

In order to provide access to the poor to food at prices they can afford, a Targeted Public Distribution System (TPDS) was introduced. Under this, 10 kg of cereals are provided per capita per month to those living below the poverty line, at half the central issue price.

A regionally differentiated strategy based on agro-climatic regional planning was initiated to achieve the goals of doubling the food output and alleviation of hunger The thrust was on ecologically sustainable use of the basic resources such as land, water and vegetation in such a way that it serves the objectives of accelerated growth, employment and alleviation of hunger. This agro-climatic based planning was for:

1. High Productivity Zone

2. Low Productivity–High Potential Zone.

3. Low Productivity Zone.

4.  Ecologically Fragile Regions.

An attempt was made to bring about effective coordination between agricultural programmes and rural programmes.

2.11 Tenth Five-Year Plan (2002-2007):

Agriculture was the core element of the Tenth Plan. Broad features of the agricultural develop-ment under the Plan included:

sustainable development of land and water resources, improvement in the infrastructural facilities,

dissemination of agricultural technology, attracting capital flow in agriculture sector,

creating additional irrigation potential of 15.61 m. ha, boosting up agricultural diversification,

improving agricultural marketing and pricing systems, liberalising agri-trading, agri-industry and exports,

encouraging contract farming and permitting leasing in and leasing out of agriculture lands.

The three-pronged strategy envisaged for the Ninth Plan to meet the basic food requirements for all was continued. The thrust areas of the tenth plan were:

Utilisation of wastelands and un-utilised/under-utilised lands. Reclamation/ development of problem soils/lands.

Rainwater harvesting and conservation for the development of rainfed areas. Development of irrigation, especially minor irrigation.

Conservation and utilisation of biological resources. Diversification to high value crops/activities.

Increasing cropping intensity.

Timely and adequate availability of inputs.

Strengthening of marketing, processing/value addition infrastructure.

Revamping and modernising the extension systems and encouraging private sector to take up extension services.

Bridging the gap between research and farmer’s yields.

Cost-effectiveness while increasing productivity. Promotion of farming systems approach.

Promotion of organic farming and utilisation of organic waste.

Development of eastern and north eastern regions, hill and coastal areas. Reforms to introduce proactive policies for the farm sector

Apart from this the emphasis was on facilitating the development of the potential and bridging yield gaps so as to have an impact on the overall development of north eastern region, hill areas, coastal areas and the rainfed areas in the country which have lagged behind in agricultural development. The stress was given on sustainable development of natural resources through soil and water conservation, watershed development and the development of minor irrigation facilities together with rainwater harvesting and conservation.

   2.12 Eleventh Five Year Plan (2007-2012):

Interestingly, agriculture sector, which continued to provide employment and livelihood to a large population despite its shrinking share in the economy, remained a growth pointer. This was evident from the fact that during the 11th Plan period, whenever the agriculture sector fared well, the economy as a whole put up an encouraging performance. In this Plan concerns were raised regarding food security, farmers’ income, and poverty and the reasons behind it. The reasons pointed were:

•  Slowdown in growth.

   •  Widening economic disparities between irrigated and rain-fed areas.

• Increased vulnerability to world commodity price volatility following trade liberalization. This had an adverse effect on agricultural economies of regions growing crops such as cotton and oilseeds.

•  Uneven and slow development of technology.

•  Inefficient use of available technology and inputs.

•  Lack of adequate incentives and appropriate institutions.

•  Degradation of natural resource base.

•  Rapid and widespread decline in groundwater table, with particularly adverse impact on small and marginal farmers.

•   Increased non-agricultural demand for land and water as a result of the higher overall GDP growth and urbanization.

•    Aggravation in social distress as a cumulative impact of the above reflected in an upsurge in farmers’ suicides.

The frontline trials of various research departments provided clear evidence of large gaps between what can be attained at the farmer’s field with adoption of available technology as compared to what had been obtained with existing practices. Since yield gaps vary considerably from crop-to-crop and from region-to-region, the strategy must enable specific plans for each agro-climatic region. Moreover, the Rashtriya Krishi Vikas Yojana (RKVY) delivered despite adverse weather, a public investment shortfall and implementation gaps. The strategy of spreading known technology wider paid.

    2.13 Twelfth Five Year Plan (2012-2017):

Since agriculture is a State subject, the Centre will have to work hand in hand with the States to bring coherence in policies and strategies. Overall investment in agriculture, which had dipped to less than 10.0 per cent of agri-GDP in 2002-03 has been substantially raised and today stands at more than 21.0 per cent of agri-GDP. Higher levels of investments in agriculture, both by the public and private sector can yield much better results if the reforms are undertaken to streamline not only the incentive structures for the farmers, but also the institutional framework in which agriculture and related activities take place. Seeds and irrigation are priority areas, which can be catalysts for raising productivity on the supply side. On the demand side, there is urgent need to remove most of the controls that have denied a unified and seamless all India market for most agri-products. Finding the most effective ways of ushering in these changes was the key priority area in the Twelfth Plan.

The Plan also focussed on other priorities such as resource-use efficiency and technology to ensure sustainability of natural resources, adaptation to climate change and improvements in total factor productivity. Therefore, agricultural production must diversify during Twelfth Plan so as to satisfy both tastes and nutrition. In particular, MSP policy should be more restrained for rice and wheat and made more effective in case of pulses and oilseeds where India is a net importer.

In the Twelfth Plan, a Gramin Krishi Mausam Seva (GKMS) will be launched to extend IAAS to block level, initially on experimental basis. Also, IMD will implement the Monsoon Mission aimed at generating better seasonal monsoon rainfall forecasts in different spatial ranges. The Government of India is currently implementing four schemes, that is, NAIS, MNAIS, WBCIS and another pilot Coconut Palm Insurance Scheme (CPIS). Only NAIS is being implemented as a full-fledged scheme and the other three are being implemented on pilot basis.

For the Twelfth Five Year Plan, the ICAR has proposed a number of new initiatives in its manner of functioning, such as setting up of an Agriculture Technology Forecast Centre (ATFC). To improve staff strength and quality it has proposed an Adjunct Professor Scheme, Agriculture Sciences Pursuit for Inspired Research Excellence (ASPIRE), e-courses and more post-doctoral fellowships. Modernisation of SAU farms is also contemplated. In particular, it has proposed the following new thrusts:

Conceived Research Platforms

National Agricultural Education Project

National Agriculture Entrepreneurship Project Farmer FIRST

Student READY

Attracting and Retaining Youth in Agriculture (ARYA) Some other important Twelfth Plan initiatives are –

National Dairy Plan (NDP),

Scheme for Livestock Health and Disease Control National Livestock Mission

National Food Security Mission

Mission on Oilseeds and Oil Palm

National Mission for Sustainable Agriculture

Plan outlay in Agriculture and Allied sectors (Rs. Crores)

Note: * Includes Animal Husbandry, Special Area Programme, Rural Development and Forestry and Wildlife.

**Includes Buffer Stocks of Rs. 140 Crores for 1968-69; Rs. 24 Crores for 1969-70; Rs.

• 50 Crores for 1971-72 and Rs. 25 Crores for 1972-73 and Rs. 24 Crores for 1973-73. Thus the figures for V Plan work out to Rs. 124 Crores against the original plan provision of Rs. 225 Crores.

Source: www.planningcommission.nic.in

References

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• Experience”, M D Publications Pvt Ltd, Delhi,
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• Volume 37, No 1, January – March, pp. 1 – 17.
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• “Agricultural Policy Strategy, Instruments and Implementation: A Review and the
• Road Ahead “, December 31, Vol  XLVI, No 53, pp. 42 -50.
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