PERFORMANCE OF

INDIAN AGRICULTURE IN
POST INDEPENDENCE PERIOD
Indian Agriculture has made rapid strides since
independence
From food shortages and import
to self-sufficiency and exports.
From subsistence farming
to intensive and technology led cultivation.
Today , India is the front ranking
producer of many crops in the world.
India is
Largest producer in the world of pulses , tea , and milk
Second Largest producer of fruits, vegetables, wheat , rice,
groundnut and sugarcane.
 YEARS
PLAN
NO.
I 1951 – 56 INDIAN
II 1956 – 61
DEVELOPMENT PLANS:
III 1961 – 66
IV 1969 – 74
V 1974 -79
VI
VII
1980 – 85
1985 – 90
PLANNING YEARS
VIII 1992 – 97
IX 1997 – 02
X 2002 – O7
XI 2007 - 12
GROWTH OF AGRICULTURE SECTOR SINCE 1950-51
GROWTH IN
PERIOD AGRICULTURE
& ALLIED
ACTIVITIES
1951-61 3.3

1961-71 2.2

1971-81 1.7

1981-91 3.9

1991-01 2.8

2002-07 2.1

SOURCE: 11th FIVE YEAR PLAN

 PER HECTARE YIELD OF PRINCIPAL CROPS SINCE 1950-51

1950-51 1964-65 2006-07

1. FOODGRAINS

Rice ( quintals) 7.1 10.8 22.03

wheat (quintals) 6.6 9.1 27.85

cereals (quintals) 4.3 5.1 14.18

pulses ( quintals) 4.0 5.2 6.38

2. NON-FOODGRAINS

oilseeds (quintals) 5.2 5.6 10.88

Sugarcane (tonnes) 34 47 66

cotton (kgs) 95 122 466

Potato (quintals) 66 84 180

SOURCE: ECO SURVEY 2007-08

 ACTUAL YIELD PER HECTARE IN QUINTALS DURING 2006

potenti Actual Yield of country world’s country

al yield world’s highest
largest yield
producer
FOOD CROP
Rice 40 to 31.2 62.5 CHINA 106.0 EGYPT
58
Wheat 60 to 26.2 44.5 CHINA 80.3 UK
68
maize 60 to 19.4 93.7 USA 93.7 USA
80
NON-FOOD
Sugarcane ------- 68.0 72.3 93.9 EGYPT
BRAZIL
Ground nut 20 8.6 31.2 31.2 CHINA
to30 CHINA

SOURCE: AGRICULTURAL STATISTICS AT A GLANCE 2008

GROSS INVESTMENTS IN AGRICULTURE (80-81 PRICES) (99 ONWARDS AT 99 PRICES

YEAR PUBLIC PRIVATE TOTAL %SHARE/P %SHARE/P

UBLIC RIVATE

1960-61 590 1,080 1,670 35 65

1980-81 1,800 2,840 4,640 39 61

1999-00 6,670 41,480 50,150 17 83

2003-04 5,250 15,260 20,510 19 81

ECO SURVEY 04-05

SHARE OF AGRICULTURAL SECTOR IN CAPITAL FORMATION IN GDP:

1990’S – 1.92%

2000’S – 1.28%

2006-07 – 2.12%

PRIVATE INVESTMENT IS MAINLY IN PUNJAB, HARYANA

& WESTERN UP
RECENT TRENDS: AS PER ECONOMIC SURVEY 2009-10
PROBLEMS OF INDIAN AGRICULTURE

•FAULTY INSTITUTIONAL STRUCTURE

•POOR IMPLEMENTATION OF LAND REFORMS

•UNECONOMIC LAND HOLDINGS

•LESS DEVELOPED MARKETING

•INADEQUATE IRRIGATION (40%)

•INADEQUATE FINANCE

•LESS DEVELOPED MARKETING

•LESS EFFICIENT & LESS UNITED LABOR

•OLD & OUTDATED TECHNOLOGY

 AGRICULTURAL PRICING
Need for agricultural price policy…..???
To provide remunerative prices
To provide incentives
To promote capital formation
To have better terms of trade between
agri & non-agri sector.
To reduce income inequality
To prevent inbuilt fluctuations
ADMINISTERED PRICES: YEARLY BASIS

Recommendation of Jha committee

1964-65
Agricultural Price Commission – 1965
recently called as –
COMMISSION FOR AGRICULTURAL
COSTS & PRICES ( CACP)
FACTORS CONSIDERED WHILE DETERMINING PRICES BY CACP:
 cost of production
Risk factors
Effect on industrial cost
Effect on cost of living
Effect on general price level
International price situation
Changes in agricultural input prices
Market prices
Demand & supply
Trends in the past price levels
 ANNOUNCEMENT OF ADMINISTERED PRICES

TYPES OF ADMINISTERED PRICES

STATUTORY
MINIMUM ISSUE PRICES
PROCUREMENT MINIMUM
SUPPORT
PRICES SUPPORT
PRICES
PRICES

Generally Jute & sugarcane Lower than

Floor price/24 crops
Lower than Procurement
Market price Prices.
& higher than
M.S.P.
( in 2009-10, issue price per quintal for wheat was 610)- & for rice,795/- for APL
for BPL, 415/- for wheat & 565/- for rice; for AAY, it was 300/- per quintal)
 ADMINISTERED PRICES

1. MINIMUM SUPPORT PRICES (M.S.P.)

M.S.P.: ANNOUNCED EACH YEAR BY CACP.

CONSIDERS MANY FACTORS WITH SPECIAL EMPHASIS ON COST FACTOR;
IMPORTANT COST CONCEPTS USED ARE C2 & C3 costs:

C2 = all actual expenses in cash and kind incurred in production by actual owner +
rent paid for leased land + imputed value of family labor + interest on value
of owned capital assets + rental value of owned land ( net of land revenue).

C3 = C2 + 10% of cost to account for managerial remuneration to the farmer .

 MINIMUM SUPPORT PRICES 2009-10
Rs. PER QUINTAL

COMMODITY M.S.P. 2010 -11 COMMODITY M.S..P. 2009-10

CROP YEAR CROP YEEAR

KHARIF CROP RABI CROP

paddy (common) 950 + 60 per Wheat 1,100

quintal bonus

Paddy ( grade A) 980 + 50/- per Masur 1,870

quintal bonus

Cotton ( F-414/H- 2,500 Other crop

777/J-34)

Groundnut in shell 2,100 sugarcane 129.84

Source: Department of Agriculture & Cooperation

 IMPLEMENTATION OF ADMINISTERED PRICES
AGENCIES:
FOOD CORPORATION OF INDIA (FCI) FOR FOODGRAINS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION (NAFED) FOR,
CEREALS, PULSES & OILSEEDS
COTTON & JUTE CORPORATIONS, TOBACCO BOARD ETC.

NATIONAL CROP FORECASTING CENTRE ( NCFC): IN JAN 1999, TO WATCH PRICES

ON PRIMARY GOODS &PUT AN ADVANCED WARNING SIGNAL

HIGH POWEREDPRICE MONITORING BOARD: 1999, MONITORING ESSENTIAL

COMMODITY PRICES & ANTICIPATING THE NEED FOR GOVERNMENT INTERVENTION

TARGETTED PUBLIC DISTRIBUTION SYSTEM: 5 LAKH FPS

BUFFER STOCKS: BY FCI & NAFED OF ESSENTIAL COMMODITIES.

WAREHOUSING
REGULATED MARKETS
CREDIT FACILITY
 IMPLEMENTATION OF ADMINISTERED PRICES
Entrusting task to different agencies
FOOD CORPORATION OF INDIA (FCI) – FOODGRAINS
NATIONAL AGRI. CO-OP MAK. FEDERATION – CEREALS, PULSES, OIL SEEDS
COTTON & JUTE CORPORATION
TOBACCO BOARD.

Establishment of National Crop Forecasting Centre (NCFC):

Jan 1999
To watch primary product prices, give signals in case of supply shortfalls

Setting up high powered price monitoring board: 1999

Targeted public distribution system – 5 lakh shops
Buffer stocks
Warehousing
Regulated markets
Credit facilities
 LIMITATIONS
DIFFICULTY IN DECIDING ‘FAIR’ PRICES

NO INTEGRATION BETWEEN DIFFERENT CRITERIA

BENEFIT TO LARGE FARMERS

MOUNTING DEFICIT

EXCESSIVE BUFFER STOCKS

SEASONAL & SHARP RISE IN VEGETABLE PRICES

FLAWS IN PDS

CONTRIBUTION TO INFLATIONARY TREND

NOT ALL COMMODITIES COVERED

 IRRIGATION

‘The secret of rapid agricultural progress in the underdeveloped countries

is to be found much more in agricultural extension, in fertilizers, in new seeds

in pesticides, and in water supplies than in altering the size of the farm,

in introducing machinery, or in getting rid of middlemen in the marketing process.’

- W.A.LEWIS
During 50 years of independence, the Government had spent about 231,400/- crores
( at 1996-97) prices) on major ,medium and minor irrigation works, leading to growth in
The country’s irrigation potential from 23 million hectare (1950-51) to
89 million heatare (1996-97)

In India about 60% of foodgrains production comes from 39% of irrigated area and
40% of remaining production comes from 61% of rainfed area.
 SOURCES OF IRRIGATION
Classification of planning Commission, since 1978-79
MAJOR IRRIGATION SCHEMES: those with Culturable Command Areas (CCA)
more than 10,000 heatares
MEDIUM SCHEMES: those with CCAs between 2,000 to 10,000 hectares
MINOR SCHEMES: those with CCA up to 2,000 hectates

Area irrigated by sources in India

sources 1950-51 1950-51 2000-01 2000-01
Area million Percentage Area, million percentage
hec. hec.

canals 8.3 40 16.0 29.2

Wells & tube 6.0 29 33.3 60.9
wells
Tanks 3.6 17 2.5 4.6
Other sources 3.0 14 2.9 5.3
total 20.6 100 54.7 100.0

CSO 2004
 GROSS & NET IRRIGATED AREA IN INDIA ( MILLION HECTARE)

YEAR NET IRRIGATED GROSS GROSS

AREA IRRIGATED IRRIGATED
AREA AREA AS % OF
SOWN AREA
1950-51 21 23 17

1990-91 48 62 34

2000-01 55 76 40

2006-07 61 85 44

AGRICULTURAL STATISTICS AT A GLANCE 2008

 IRRIGATION POTENTIAL CREATED AND UTILIZED UP TO THE END OF 2006-07
MILLION HECTARE

SOURCE POTENTIAL POTENTIAL UTILIZD PERCENT

CREATED UTILIZATION
MAJOR & MIDIUM 42.4 34.4 81
MINOR IRRGATION 60.4 52.8 87
TOTAL 102.8 87.2 85

PLANNING COMMISSION; 11TH FIVE YEAR PLAN ( 2007-12)

REASONS OF UNDERUTILIZATION:
Delays in construction of field channels & field drains, land shaping, land levelling
Lack of active participation of farming community
Lack of knowledge of optimum use of irrigation, crop rotation,
varieties of short maturing crops
Poor maintenance of irrigation works especially of open wells & tanks
Faulty irrigation practices & absence of adequate drainage facilities

COMMAND AREA DEVELOPMENT (CAD) PROGRAMME WAS STARTED FOR EFFECTIVE

UTILIZATION IN 1974-75
 MINOR IRRIGATION MEDIUM & MAJOR IRRIGATION

COST OF CREATING IRRIGATION POTENTIAL

COST OF CREATING POTENTIAL IS 3 TIMES
IS 12,970/- PER HECTARE
MORE TO AROUND 40,170/-PER HECTARE
LESS CAPITAL INTENSIVE
IT HAS LONGER TIME LAG
IT TAKES SHORT TIME TO CONSTRUCT THUS
CANNOT BE DONE BY INDIVIDUAL FARMER
NO TIME LAG
ADVERSE ENVIRONMENTAL IMPACT
MORE BENEFICIAL FOR CROPS THAT REQUIRE
LESS WATER LIKE PULSE, OILSEEDS ETC.
INVOLVES DISPLACEMENT OF RESIDENTS
BETTER RURAL ELECTRIFICATION HELPS ITS
LESS UTILIZED DUE TO LACK OF PROPER
EXPANSION
WATER MANAGEMENT.
IT LEADS TO RAPID EXHAUSTION OF GROUND
IT PROVIDES ELECTRIC ENERGY
WATER.
IT SERVES AS A FLOOD CONTROL DEVICE
 GOVERNMENT PROGRAMMES:

INDIA HAS AROUND 166 MILLION HEACTARES OF AGRICULTURAL LAND OUT OF

WHICH 140 MILLION HECTARE CAN BE IRRIGATED. BY 2006-07, 87 MILLION HECTARE
IS IRRIGATED- SO POTENTIAL IS 37 MILLION HECTARE WHICH CAN BE ACHIEVED BY
SPENDING AROUND 75,000/- CRORES MORE.

NABARD HAS SET UP ‘RURAL INFRASTRUCTURE FUND’, FOR STATES

TO COMPLETE MINOR IRRIGATION PROJECTS.

SINCE 1996-97, ‘ACCELERATED IRRIGATION BENEFIT PROGRAMME’ WAS

LAUNCHED TO GIVE LOAN ASSISTANCE TO STATES FOR MULTI PURPOSE
PROJECTS.

FEB. 2002; CENTRAL GOVERNMENT INTRODUCED,’FAST TRACK PROGRAMME’,

FORCOMPLETION OF IRRIGATION PROJECTS WITH FULL CENTRAL
ASSISTANCE.
CONTROVERSIES:

IRRIGATION BENEFIT EXAGGERATED – ACTUAL AREA IRRIGATED IS ALWAYS LESS

HYDRO-POWER NOT SO CHEAP WITH HUGE GESTATION PERIOD OF 5-10 YEARS

NO BENEFIT FOR FLOOD CONTROL

ADVERSE ENVIRONMENT EFFECTS

SOCIAL PROBLEMS
PRIVATE SECTOR PARTICIPATION:
1997 Mr. P. V. Rangayya Naidu Committee, encouraged private investment
in irrigation.

Maharashtra, M.P., A.P. have initiated action for privatisation of irrigation projects
Schemes used are –

1) Built Own Operate System (BOOS), or Built-Own –Transfer (BOT),

Built-Own-Lease System (BOL) – irrigation depatment will buy water in bulk from private
Companies to distribute among farmers.

2) Some of the Governments have issued bonds , eg. Maharashtra Krishna Valley
Development Corporation (MKVDC)
Sardar Sarovar Projec in Gujrat etc.
 FERTILIZERS AND MANURES
Production, imports & consumption of chemical fertilizers in India

YEAR PRODUCTION IMPORTS CONSUMPTION CONSUMPTION

000 TONNES 000 TONNES 000 TONNES PER HECTARE
OF CROPPED
AREA (KG)
1951-52 39 52 70 0.5

1990-91 11,860 2,760 12,550 76.8

2000 -01 14,750 5,253 16,700 90.1

2006-07 16,096 6,058 21,651 112.2

Economic survey 2008-09

GOVERNMENT POLICY: OF PROMOTING USE OF CHEMICAL FERTILIZERS
THROUGH-

Huge fertilizers subsidies; 600/- crores in 1979-80 to 4,400/- crores in 1990-91 &
NOW 22,450/- CRORES IN 2006-07

BETTER TRANSPORT,, REGULATED SUPPLIES TO PRIORITY CROPS

ENSURING ADEQUATE SUPPLIES OF WAGONS THROUGH HIGH LEVEL

COORDINATION WITH THE RAILWAYS

PROVISION OF SHORT TERM CREDIT TO STATES FOR THE PURCHASE &

DISTRIBUTION OF FERTILIZERS

SETTING UP OF SOIL TESTING LABS IN DIFFERENT PARTS OF COUNTRY

GOVT. Gives subsidy to producers and also to consumers

DUE TO HIGH INTERNATIONAL PRICES OF FERTILIZERS, FERTILIZER STRATEGY
SINCE NINTH PLAN IS ORIENTED TOWARDS INCREASING USE OF ORGANIC
MANURE BY USING COWDUNG, CATTLE URINE &. FARMYARD MANURE.

PROBLEMS ASSOCIATED WITH PRODUCTION & USE OF CHEMICAL FERTILIZERS

delays in production causing high cost

Delay & hesitation in giving licenses to private firms

Unbalanced use of chemicals in fertilizers leads to soil degradation

nitrogenous, phosphatic, potassium (NPK) should be used in ratio 4:2:1

Which is used as 9.7: 2.9: 1
 SEEDS
AGRICULTURE DEPARTMENT & INDIAN COUNCIL OF AGRICULTURAL
RESEARCH HAVE DEVELOPED & POPULARISED IMPROVED AND
DISEASE-RESISTING SEED VARIETIES

FIRST TIME IMPROVED SEED VARIETIES WERE INTRODUCED IN HYVP IN 1966.

GOVERNMENT HAS SET UP NATIONAL SEEDS CORPORATION IN 1963 &

STATES FARM CORPORATION OF INDIA IN 1966 TO PRODUCE & SUPPLY QUALITY SEEDS

BREEDER SEED: PRIMARY STAGE OF SEED PRODUCTION CYCLE IS PRODUCED BY ICAR,

ALONGWITH NSC & SFCI.
BREEDER SEED PRODUCTION IN 2006-07 WAS 69,980 QUINTALS.

FOUNDATION SEED: SECOND STAGE SEED, FOR PULSES, OILSEEDS & FODDER
IS AROUND 8 LAKH QUINTALS IN 2006-07

CERTIFIED/ QUALITY SEEDS: 15 MILLION QUINTALS IN 2006-07

THE PARLIAMENT HAS PASSED THE PROTECTION OF PLANT VARITIES & FARMERS RIGHT
LEGISLATION.
THE SEEDS BILL 2004 FOR REGISTRATION OF SEED VARIETIES WAS MADE TO BE
CRITICISED, SO IS STILL PENDING

SEEDS BANK HAS BEEN SET UP BY GOVT. IN 1999-00, IMPLEMENTED THROUGH

NSC, SFCI.
 NATIONAL AGRICULTURAL POLICY - 2000
TO ESTABLISH AN APPROPRIATE & CONDUCIVE ENVIRONMENT
TO ACHIEVE A HIGHER GROWTH RATE OF AGRICULTURE

OBJECTIVES :
 Growth rate more than 4% per annum.

 To introduce required structural changes

 To bring in necessary reforms

 To make efficient use of resources

 To make agri. More market oriented

 To achieve equity
 STEP TAKEN

TO MAKE AGRICULTURE SUSTAINABLE :

REDUCE POPULATION PRESSURE
DIVERSION TO NON-AGRICULTURAL LAND TO BE CONTROLLED
MORE WASTELANDS TO BE BROUGHT UNDER CULTIVATION
RATIONAL UTILIZATION & WATER CONSERVATION
MAJOR THRUST TO USE OF BIO-TECHNOLOGY, AGRO FORESTRY

FOOD & NUTRITIONAL SECURITY:

TO GROWN NUTRITIONAL VARIETY OF CROPS
HORTICULTURE, FLORICULTURE, BEE HIVING WILL BE GIVEN TOP PRIORITY
NATIONAL LIVESTOCK BREEDING STRATEGY TO BE DEVELOPED
GREATER AWARENESS ABOUT NEW TECHNIQUES IN AGRICULTURE &
ANIMAL HUSBANDRY

GENERATION & TRANSFER OF TECHNOLOGY IS AIMED TO MODERNIZE

AGRICULTURE & AGRICULTURAL RESEARCH
INPUTS MANAGEMENT: ADEQUATE & TIMELY SUPPLY OF INPUTS
PRIVATE PARTICIPATION IN DEVELOPMENT, PRODUCTION,
DISTRIBUTION OF IMPROVED VARIETIES
SETTING UP OF A NATIONAL SEED GRID TO ENSURE SEED SUPPLY TO
AREAS AFFECTED BY NATURAL CALAMITIES

INCENTIVES FOR AGRICULTURE: CREDIT, INPUT, INFRASTRUCTURE

, REMOVONG RESTRICTIONS TO IMPROVE INTERNAL TRADE BENEFITS
TO AGRI

INVESTMENTS IN AGRICULTURE: THROUGH PRIORITY TO

RURAL ELECTRIFICATION, STRENGTHENING IRRIGATION, PROVIDING
BETTER STORAGE & TRANSPORT FACILITIES

RISK MANAGEMENT: THROUGH INSURANCE POLICIES, EFFECTIVE

MEASURES AGAINST FLOODS, ENSURING REMUNERATIVE PRICES
MANAGEMENT REFORMS: BETTER COORDINATION BETWEEN CENTRAL
& STATE GOVT., STRENGTHENING THE DATA BASE ABOUT AGRICULTURE
TO FORMULATE MEANINGFUL POLICIES
INSTITUTIONAL CREDIT IN INDIAN AGRICULTURE

STRUCTURE OF INSTITUTIONAL CREDIT

GOI & RBI

NABARD

COMMERCIAL
BANKS CO-OP.CREDIT
RRBS
SOC.
 FLOW OF INSTITUTIONAL CREDIT TO AGRICULTURE
PERCENTAGE SHARE

AGENCY 1970s 1980s 2OOO-O1 2004-05

COOPERATIVES 77.0 55.9 39.0 26.6

COMMERCIAL BANKS 21.O 38.9 53.0 63.2

REGINAL RURAL BANKS 2.0 5.2 8.0 10.2

Source: RBI bulletin, NOV 2004 & economic survey 2005-06

 MICRO FINANCE:
EXTENSION OF BANK CREDITTO THE POOR WITH THE HELP OF SHGs, NGOs,
CREDIT UNIONS. IT COMBINES LOWER TRANSACTION COST &
HIGH DEGREE REPAYMENTS

AT THE END OF MARCH 2007, 2.9 MILLION SELF HELP GROUPS ARE LINKED
WITH BANKS & 7,000 NGOs ARE LINKED WITH THE SCHEME.

 MORE THAN 90% BANK LINKED SHGs ARE EXCLUSIVE WOMEN GROUP.

DISBURSEMENT OF BANK LOAN TO SHGs WAS Rs. 18,040/- CRORES

AVERAGE LOAN PER SHG WAS NEARLY Rs. 30,000

AVERAGE LOAN PER FAMILY WAS Rs. 1,770.

HOWEVER:
ONLY 30% POOR FAMILIES ARE COVERED BY MICRO FINANCE SCHEMES
REGIONAL DISPARITIES, ONLY 4 STATES ACCOUNT FOR 70% OF
SHGs LINKED WITH BANK CREDIT
 KISAN CREDIT CARDS
KCC WAS INTRODUCED IN 1998-99 FOR SHORT TERM CREDIT AND
PERSONAL ACCIDENT INSURANCE

IMPLEMENTED BY 27 COMMERCIAL BANKS, 187 RRBs, 334 CENTRAL COOPERATIVES.

MARCH 2007, NEARLY 67 MILLION KCCs WERE ISSUED & TOTAL LOAN SANCTIONED
WAS OF 97,710/- CRORES
 AGRICULTURAL INSURANCE
COMPREHENSIVE CROP INSURANCE SCHEME, 1985:

COVERD MAJOR CEREAL CROPS, OILSEEDS & PULSES.

FARMERS AVAILING CROP LOANS FROM COOPERATIVE CREDIT SOC., COMMERCIAL
BANKS INCLUDING RRBs WERE COVERED.
SUM INSURED IS EQUAL TO CROP LOAN DISBURSED & MAX. OF 10,000/- PER FARMER
PREMIUM = 2% FOR RICE, WHEAT & MILLETS & 1% FOR PULSES & OILSEEDS
IT COVERED 15 STATES, 2 UNION TERRITORIES
GIC ADMINISTERED THE SCHEME ON BEHALF OF MINISTRY OF AGRICULTURE & GOI.

UPTO RABI 1997-98 SEASON, 65 MILLION FARMERS WERE COVERED. TOTAL CLAIMS
PAID WAS 1,623/- CRORES WHEREAS PREMIUM COLLECTION WAS 313/- CRORES.
THE SCHEME WAS UNVIABLE. THE LOSSES WERE MET BY GOVT. IN THE RATIO OF
2:1 CENTRAL & STATE GOVT.S
 NATIONAL AGRICULTURAL INSURANCE SCHEME, (NAIS)
or RASHTRIYA KRISHI BIMA YOJANA ; 1999-00
with the intention of providing financial support to farmers in the event of
crop failure as a result of natural calamities, pests & diseases

•ALL FOOD CROPS (CEREALS, PULSES) , OILSEEDS, HORTICULTURAL, COMMERCIAL CROPS

•COVERS ALL FARMERS.

•PREMIUM RATES BETWEEN 1.5% TO 3.5% OF SUM ASSURED FOR FOOD CROP.

•SUBSIDY OF 50% ON PREMIUM FOR SMALL & MARGINAL FARMERS, SHARED BY STATE &
•CENTRAL GOVT. HOWEVER SUBSIDIES TO BE PHASED OUT IN 5 YEARS.
IT OPERATES ON:
AREA APPROACH – IN THE AREA FOR ALL CROPS FOR WIDESPREAD CALAMITIES
INDIVIDUAL APPROACH – FOR LOCALISED CALAMITIES.

STATE IS TO REACH AT THE LEVEL OF GRAM PANCHAYATS

AS A UNIT OF INSURANCE FOR 3 YRS.

IMPLEMENTATION BY GIC
 2006-07, 18 MILLION FARMERS WERE COVERED. SUM INSURED = 21,750/- CRORES
INSURANCE CHARGES = 610/- CRORES; TOTAL CLAIMS = 2,250/- CRORES.
25 STATES, 2 UNION TERRITORIES

During the period from rabi 1999-2000 to rabi 2008-09, 1,347 lakh farmers over an
area of 2,109 lakh ha have been covered, insuring a sum of Rs 1,48,250crore.

The pilot Weather Based Crop Insurance Scheme (WBCIS) 2007-08

is being implemented in 13 States to provide insurance protection to farmers against
adverse weather incidences

During five crop seasons (from kharif 2007 to kharif 2009), about 21.77
lakh farmers have been covered
claims to the tune of about Rs 388 crore have been paid against a premium of about
Rs 444 crore.
LIVESTOCK INSURANCE: 1993-94 THROUGH GIC

COVER IS PROVIDED FOR THE SUM INSURED OR MARKET VALUE OF THE ANIMAL AT
THE TIME OF DEATH WHICHEVER IS LESS.

ANNUALLY 19-20 MILLION ANIMALS ARE INSURED.

PREMIUM COLLECTED BETWEEN 131/- CRORES TO 145/- CRORES (1994-2002)

CLAIMS BETWEEM 72/- TO 95/- CRORES