Indian Agriculture Sector At The Cusp Of A Revolution

In the recent years, India has put up an impressive growth performance at the agricultural front, almost 30% as per the latest report. Thanks, to the public and private sector investments flowing in at a continuous pace.

Agriculture is Indian economys mainstay and it comprises 18.5 per cent of the gross domestic product (GDP).

In the last two years agriculture and its allied sectors have registered a noteworthy growth rate of 4% as opposed to the average annual growth rate of 2.5% during the 10th Five-Year plan.

The current thrust on the Agricultural Sector has been mainly possible due to sizeable number of initiatives adopted in the recent years. Say, for instance, public sector investment in the farm sector has grown from 1.8% in 2000-01 to 3.5% in 2006-07, private sector investment has increased from 8.9% in 2003-04 to 9.9% in 2006-07.

According to a report, agri-biotech sector in India has been growing at a mind-blowing rate of 30% since the last five years, and it is likely to maintain this growth rate in the future. The report further adds that agriculture biotech in India has immense growth opportunities and the country could become a forerunner in the production of transgenic rice and several other genetically engineered vegetables by 2010.

The food processing sector, which is considered to the prime driver of the Indian Economy, is currently growing at 13.5% as opposed to 6.5% in 2003-04.

Production

Riding on the back of agro-climatic conditions and rich natural resource base, India, today has become the worlds largest producer of numerous commodities,

The country is the leading producer of coconuts, mangoes, milk, bananas, dairy products, ginger, turmeric, cashew nuts, pulses and black pepper. Further, it is also the second largest producer of rice, wheat, sugar, cotton, fruits and vegetables.

According to the report of Centre for Monitoring Indian Economy (CMIE), crop production is estimated to increase by 1.7 per cent during FY 10. Foodgrain production is projected to rise by 1.1 per cent. Of which, wheat production may remain at the same level of 80-million tonnes as estimated for FY 09. Rice production may swell by 1.1 per cent to 98.8-million tonnes. Manufacturing of coarse cereals and pulses is also expected to rise in FY 10.

Also, India is the second-largest producer of cotton. The yield may rise 10% to about 32 million sales in 2009-10. Cotton output in 2008-09 is being pegged at 29 million bales, as per the projections by state-owned Cotton Advisory Board.

Indias coffee yield is estimated to touch at 3.1 lakh tonne in 2009-2010, 4.4% higher compared to 2008-09, according to the Coffee Board.

Exports

According to APEDA- government’s agri-trade promotion body- India’s Agricultural and processed food products clocked a 38 per cent increase in the 200708 fiscal, on the back of increased shipments of coarse cereals like maize, jowar and barley. According to official report, India exported 17.5 million tonnes worth of agricultural and processed foods valued at US$ 6.39 billion in FY 200708 as opposed to 10.9 million tonnes in the previous year.

APEDA believes that exports will grow further due to growing demand from Asian and African markets that are vigorously obtaining rather cheaper Products from emerging markets like India.

Today, 70 per cent of the countrys agricultural and processed foods exports are send to developing countries in the Middle East, Asia, Africa and South America.

Investments

* India may shell out US$ 14.05 million for the development of organic spices by 2012, specially turmeric, chilli, and ginger.

* Monsanto Company is planning to spend US$ 9.8 million to set up scholars program to support research and production of rice and wheat, through plant breeding techniques.

* DuPont has taken over Nandi seeds for US$ 8.3 million.

* To cultivate drought hit areas of the Telangana region, the Andhra Pradesh government has approved US$ 773.68 million for the Pranahita-Chevella Lift Irrigation Scheme to be made functional here.

* Tata Chemicals will be setting up a manufacturing plant for customised fertilisers at Babrala in Uttar Pradesh. The company is planning to invest US$ 10.02 million in this facility which is having a production capacity of 20 tonne per hour.

Government Initiatives

Few of the initiatives taken by the government to speed up growth include:

* The government has given approval for 60 Agricultural Export Zones (AEZs).

* The National Food Security Mission aspires to enhance the production of rice, wheat and pulses by 10 million tonnes, 8 million tonnes and 2 million tonnes, respectively by the end of the 11th Plan.

* The Rashtriya Krishi Vikas Yojana was introduced in 2007. Under this scheme the States will be offered US$ 5.01 billion over the 11th Plan period for investment in various projects.

* Agro and allied sectors have been allowed 100 per cent foreign direct investment (FDI) via the automatic route.

Road ahead

With the governments special focus on this sector, the agriculture segment is all set to play a more proactive role in the economy.

In the 200910 budgets, the government has initiated various steps to support the growth of this sector in order to achieve self-sufficiency in food grains.

Agriculture credit may probably touch US$ 67.14 billion for the year 2009-10. In 2008-09 agriculture credit flow was at US$ 59.3 billion.

Indian Agriculture Sector At The Cusp Of A Revolution

In the recent years, India has put up an impressive growth performance at the agricultural front, almost 30% as per the latest report. Thanks, to the public and private sector investments flowing in at a continuous pace.

Agriculture is Indian economys mainstay and it comprises 18.5 per cent of the gross domestic product (GDP).

In the last two years agriculture and its allied sectors have registered a noteworthy growth rate of 4% as opposed to the average annual growth rate of 2.5% during the 10th Five-Year plan.

The current thrust on the Agricultural Sector has been mainly possible due to sizeable number of initiatives adopted in the recent years. Say, for instance, public sector investment in the farm sector has grown from 1.8% in 2000-01 to 3.5% in 2006-07, private sector investment has increased from 8.9% in 2003-04 to 9.9% in 2006-07.

According to a report, agri-biotech sector in India has been growing at a mind-blowing rate of 30% since the last five years, and it is likely to maintain this growth rate in the future. The report further adds that agriculture biotech in India has immense growth opportunities and the country could become a forerunner in the production of transgenic rice and several other genetically engineered vegetables by 2010.

The food processing sector, which is considered to the prime driver of the Indian Economy, is currently growing at 13.5% as opposed to 6.5% in 2003-04.

Production

Riding on the back of agro-climatic conditions and rich natural resource base, India, today has become the worlds largest producer of numerous commodities,

The country is the leading producer of coconuts, mangoes, milk, bananas, dairy products, ginger, turmeric, cashew nuts, pulses and black pepper. Further, it is also the second largest producer of rice, wheat, sugar, cotton, fruits and vegetables.

According to the report of Centre for Monitoring Indian Economy (CMIE), crop production is estimated to increase by 1.7 per cent during FY 10. Foodgrain production is projected to rise by 1.1 per cent. Of which, wheat production may remain at the same level of 80-million tonnes as estimated for FY 09. Rice production may swell by 1.1 per cent to 98.8-million tonnes. Manufacturing of coarse cereals and pulses is also expected to rise in FY 10.

Also, India is the second-largest producer of cotton. The yield may rise 10% to about 32 million sales in 2009-10. Cotton output in 2008-09 is being pegged at 29 million bales, as per the projections by state-owned Cotton Advisory Board.

Indias coffee yield is estimated to touch at 3.1 lakh tonne in 2009-2010, 4.4% higher compared to 2008-09, according to the Coffee Board.

Exports

According to APEDA- government’s agri-trade promotion body- India’s Agricultural and processed food products clocked a 38 per cent increase in the 200708 fiscal, on the back of increased shipments of coarse cereals like maize, jowar and barley. According to official report, India exported 17.5 million tonnes worth of agricultural and processed foods valued at US$ 6.39 billion in FY 200708 as opposed to 10.9 million tonnes in the previous year.

APEDA believes that exports will grow further due to growing demand from Asian and African markets that are vigorously obtaining rather cheaper Products from emerging markets like India.

Today, 70 per cent of the countrys agricultural and processed foods exports are send to developing countries in the Middle East, Asia, Africa and South America.

Investments

* India may shell out US$ 14.05 million for the development of organic spices by 2012, specially turmeric, chilli, and ginger.

* Monsanto Company is planning to spend US$ 9.8 million to set up scholars program to support research and production of rice and wheat, through plant breeding techniques.

* DuPont has taken over Nandi seeds for US$ 8.3 million.

* To cultivate drought hit areas of the Telangana region, the Andhra Pradesh government has approved US$ 773.68 million for the Pranahita-Chevella Lift Irrigation Scheme to be made functional here.

* Tata Chemicals will be setting up a manufacturing plant for customised fertilisers at Babrala in Uttar Pradesh. The company is planning to invest US$ 10.02 million in this facility which is having a production capacity of 20 tonne per hour.

Government Initiatives

Few of the initiatives taken by the government to speed up growth include:

* The government has given approval for 60 Agricultural Export Zones (AEZs).

* The National Food Security Mission aspires to enhance the production of rice, wheat and pulses by 10 million tonnes, 8 million tonnes and 2 million tonnes, respectively by the end of the 11th Plan.

* The Rashtriya Krishi Vikas Yojana was introduced in 2007. Under this scheme the States will be offered US$ 5.01 billion over the 11th Plan period for investment in various projects.

* Agro and allied sectors have been allowed 100 per cent foreign direct investment (FDI) via the automatic route.

Road ahead

With the governments special focus on this sector, the agriculture segment is all set to play a more proactive role in the economy.

In the 200910 budgets, the government has initiated various steps to support the growth of this sector in order to achieve self-sufficiency in food grains.

Agriculture credit may probably touch US$ 67.14 billion for the year 2009-10. In 2008-09 agriculture credit flow was at US$ 59.3 billion.

Agriculture Industry In India

Agriculture in India has a long history. Since more than 10,000 years majority of Indians are dependent on the industry. As agriculture is counted the main business of most of the people, it plays a significant role in the overall socio economic development of the country. According to the Annual Report 2009-2010 of the Ministry of Agriculture the total geographical area of India is 328.7 million hectares of which 140.3 million hectares is net sown area, while 193.7 million hectares is the gross cropped area.

Among world nations, India is the largest producer of fresh fruits. It mainly produces Sesame seeds, fennel, badian, jute, cashew nuts, pulses, ginger turmeric, mangoes, chillies and peppers. India holds the second largest population of cattle. It has around 281million cattle.

It holds the second position in producing cashew, cabbage, cotton seed, fresh vegetables, garlic, cardamom, onions, wheat, rice sugarcane, tomatoes, coconut, ground nut, tea, green peas, cauliflower, potato and inland fish.

India is a country which produces tobacco, rapeseed, coconut and tomatoes in large amount. So, it is called the third largest producer of these produce. The Indian Agriculture Research Institute (INRI) was established in 1905. INRI was responsible for the research leading the Indian Green Revolution of the 1970s. The Indian Council of Agricultural Research (ICAR) is the apex body in agriculture and related fields. They have to look after all researches and education of the related field. The union minister of Agriculture is the president of ICAR. The Indian Agriculture Statistics Research Institute looks after and develops new techniques, and they design the experiments, analyses data in agriculture and they develop the strategies to get maximum from animal and plant breed. However, Government of India has set up Farmers Commission to completely evaluate the agriculture program but still farmers are facing some problems.

According to World Bank : Indian Branch the allocation of water is insufficient and unsustainable. The irrigation infrastructure is deteriorating. At some places the overuse of water is currently being covered by pumping facility but as these are falling by foot of underground water each year, this is a limited resource. Secondary, farmers in India are mostly illiterate, socially economically backward or incapable of developing new ideas. They are inadequate or inefficient to implement fast and progressive actions. Farmers are facing the problems of finance and lack of marketing services for farm produce. Still as agriculture being the Indian business, future of agriculture in India is bright.

Government is taking active interest in agriculture and it is giving the highest priority to it. The Tenth Plan allocation was comparatively lower than 11th Plan. The 11th Plan is considerably higher over the 10th plan. An amount of US$19 billion has been allocated for the Ministry of Agriculture during the Eleventh Five Year Plan. Agriculture is one of the strongholds of the Indian economy and accounts for 14.6 percent of the countrys gross domestic product (GDP) in 2009-2010, and provisional percent of the total export is 10.23 percent. Moreover, the agriculture sector, provides employment of 52 to 55 percent of the work force.

As per the Centre for Monitoring Indian Economy (CMIE) farm output will grow by 10 percent to 114 million ton (MT) in the Kharif season, while in winter season( Rabbi season) is expected to increase 2 percent that will be around 116.6 MT. According to Agricultural and processed Food Products Export Development Authority (APEDA) Indias exports of fruits, vegetables, cereals and processed food products was worth US$ 1.14billion during April May 2010-11. Middle East, Asia, Africa, and South America are developing countries in which 70 percent of the Indias agriculture and processed food is being exported.

This data makes it absolutely clear that Indian Economy is largely governed by the Industry, which is still largely dependent on the uncertainties of rainfall and other natural forces. We have a social responsibility to support the agricultural industry in every possible manner.

URL: http://www.made-from-india.com/article/Agriculture-Industry-In-India-821.html