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Indian Agriculture2

Irrigation and other agricultural inputs


Need for artificial source of irrigation
Sources of irrigation: canals, wells and tube

wells
During the 50 years, 231,400 cr. Rs. spent
on various major, medium and minor
irrigation schemes
It increased irrigation potential from 23
million hectares to 89 million hectares from
1950-51 to 1996-97

Culturable Command Area (CCA): The area

which can be irrigated from a scheme and is


fit for cultivation.
Gross Irrigated Area: The area irrigated under

various crops during a year, counting the area


irrigated under more than one crop during the
same year as many times as the number of
crops grown and irrigated.

Minor Irrigation Scheme: A scheme having

CCA up to 2,000 hectares individually is


classified as minor irrigation scheme. (Dug
well, borehole, deep tube well, surface flow
irrigation schemes, tanks)
Medium Irrigation Scheme: A scheme having
CCA more than 2,000 hectares and up to
10,000 hectares individually is a medium
irrigation scheme. (Canals)
Major Irrigation Scheme: A scheme having
CCA more than 10,000 hectares is major
irrigation scheme.
(BhakraNangal,Nagarjunasagar, Kosi,
Chambal,Hirakud, Kakrapar and

Gross Irrigated Area in India

Gross irrigated
area (million

Hectares)
1950-51
23
1970-71
38
1990-91
62
1999-2000
76
2000-01
76
2006-07
85

Gross irrigated
area as % sown
area
17
23
34
39
40
44

Increase in area irrigated more than once is a kind of increase


if land.

Development of irrigation potential


Major and
Medium

Minor

1950-51

10

13

1980-81

27

31

1990-91

30

48

1999-2000

35

60

2006-07

42

61

Ultimate irrigation
potential

59

81

(million hectares)

Irrigation potential versus utilisation


Gap due to delay in the construction of field
channels, and drains, and in land leveling.
Source

Potential
created

Potential
Utilized

Per cent
utilisation

Major &
Medium

42.4

34.4

81

Minor

60.4

52.8

87

Total

102.8

87.2

85

Command Area Development Scheme: Narrowing the

gap between creation and utilisation including


construction of field channels and field drains, land
shaping etc.
CAD was not successful due to non-participation of
farmers, and unreliability of water supply at outlet.
Cost of irrigation potential for major and medium
project was Rs. 40170 per hectare (at 1996-1997
prices) and that of minor projects Rs. 12970 per
hectare.
Recent emphasis is on minor irrigation works using
ground water resources
Rural infrastructure development fund(RIDF) and
Accelerated Irrigation Benefit Programme(AIBP): to
expand irrigation facilities

Irrigation and New Challenges


Due to new technology
It has been estimated that 166 million hectare

of agricultural land out of which 140 could be


ultimately irrigated by 2006-07 only 87 million
hectares are provided the facility.
Full utilization will increase with:
Multiple cropping, alternative rotation of
crops, by providing supporting facilities.

2. Multipurpose River Valley project


Economic plans place dam construction as

highest priority
Results on heavy and medium irrigation
projects
1. exaggeration of irrigation benefits
2. Hydro-power was not cheap
3. No benefit of flood control (heavy siltation)
4. Adverse environmental effect

3.Private sector participation in


irrigation
For boosting agricultural production, P.V. Rangayya
Naidu
Committee
(1997)
proposed
private
participation in irrigation
Build-Own-Operate System(BOOS)
Build-Own-Transfer system (BOT)
Build Own-Lease system(BOL)
Water users Association (WUA): In order to involve
farmers in the various levels of water
management and irrigation
Role of Government as a facilitator and regulator

Theworkinggroupon Medium and Major Irrigation


project under 12th Five year Plan
identifiedfivekeychallenges:
achievingfullerutilizationofcreatedfacilities;
improvingwateruseefficiencyinMMIprojects;
ensuringphysicalandfinancialsustainabilityofM
MIprojects;
rationalizingirrigationservicefees(ISF)andimpr
ovingtheircollectionratio;
incentivizingStateIrrigationAgenciesforthepro
motionofParticipatoryIrrigationManagement(PI
M)andvolumetricwaterpricinganddeliverytoW
aterUserAssociations(WUAs).

Fertilizers and Manures


New agricultural strategy based on increased use

of fertilizers
High growth in fertilizer consumption leading to:
1. High subsidies
2. Regulated supplies to priority crops and areas
3. Ensuring adequate supply through better
cooperation with railways
4. Short term credit to states
5. Setting up of soil testing laboratories

Production and import of fertilizer


Though there was a considerable increase in the

domestic production of fertilizers, not to keep the pace


with growth in consumption:1.Delay in setting up of plants
2.Problem of capital
3. delay in the issue of licenses to private parties to set up
fertilizer plant

India Govt. respond to the delay by allowing foreign

equity participation and distribution rights. However,


Imports of fertilizer increased gradually because
a)Export of fertilizer to India was profitable to foreign firms
b) Uncertainty w.r.t the nature and availability of raw
material

Consumption
Imports of Chemical
per Hectare in
Fertilizers ('000 tonnes) Kgs

1950-51

52

0.5

1970-71

630

13.1

1990-91

2760

76.8

2000-01

2090

90.1

2005-06

5253

104.5

2006-07

6058

112.2

5.Improved seeds and Soil conservation


High Yielding Variety Programme-1966
Protection of plant varieties and Farmers Right

Legislation
The seed bill 2004
Set up of seed bank in 2000
Issues with Soil
Indian soil is in a lowest stage of deterioration
Soil erosion
Central Soil Conservation Board in 1952 to

bring land under soil conservation measures.

6. Livestock and Dairy Development


Components: Milk, egg, wool, meat, fish, dung

and cattle as a source of energy for cultivation.


Cattle number increased from 293 million to 485
million from 1958 to 2003.
Provide regular employment to 11 millions
Animal husbandry under five year plans
Operation flood project: 1970
Largest integrated dairy development programme
Increase milk production from 17 million tonne to 54

from 1950-51 to 1990-91)


69,000 dairy co-operative societies

Mechanization of agriculture
Scope and purpose of mechanisation:
Better use of tools, equipments and machinery
to increase agricultural production.
Efficient handling, transport and storage
Value addition
Reduce in physical labour
Raise agriculture productivity and profitability

Mechanization of agriculture
Case for mechanization
Machinery relieved man from heavy work
Large scale production
Immediate applicability
Case against
No scope-small size of land holding
Agricultural labors and cattle population become
surplus
Productivity of labour may increase not the land

Land reforms
Need and scope for land reforms
Land reforms and technological change are
complementary in the process of agricultural
development.
Purpose of land reform: rational use of scarce
land and ending of exploitation
Scope:
a) abolition of intermediaries
b) tenancy reform
c) ceiling and floors on land holding
d) organization of cooperative farms

Land reforms
Alleviate Poverty:
By distributing land among landless
By providing security of tenure and ownership
rights to tenants and sharecropper
By protecting the interest of tribal in lands and
preventing non-tribal to encroach
By promoting consolidation of holdings
By development of public lands
By providing women to access to land
By protecting homestead land

Abolition of intermediaries
1.Zamindari Tenure:
2. Mahalwari Tenure:
3. Ryotwari Tenure:
1948 legislation enactment in madras
Assam, Gujrat, Maharashtra, West Bengal late
entrant
Abolition of intermediaries between states and
tillers
Compensation to intermediaries

Tenancy reforms
The problem of tenancy cultivation-by small
proprietors or landless labors
Permanent tenants, temporary tenants and sub
tenants
Extent of tenancy One fifth of total area held under tenancy

Informal

tenancy-without legal sanction and


permission
Measures of tenancy reform
1. regulation of rent: 1st and 2nd plans recommend
that rent should not exceed 1/4th or 1/5th of total
gross produce and fix rent in terms of cash rather
than kind.

2. Security and ownership right of tenure:


No large-scale ejectments of tenants,
resumption of land by the owner for personal

cultivation,
in the event of resumption, a prescribed minimum
area is left with the tenants.
A limit has been placed on the extent of land
which the land owner may resume.
Third plan suggested right of ownership for
tenants as they required to purchase land.
Legal protection to tenants

Ceiling on land holding


Imposition of land ceiling on landlords
Problems of ceiling:

a) Mala fide transfers like transfers among the


family members, benami transfers
b) compensation and allotment of surplus
lands- compensation that paid to the land
owners and price that recovered from the
allotters of surplus land.

Progress of measures undertaken under


ceiling legislation
Guidelines for implementation of land ceiling

1. regard to the best category of land: land ceiling is limited with in


the range of 10-18 acres
2. regard to the inferior land: higher ceiling is allowed but not more
that 54 acres
3. unit of application: it should be family
4. non applicable cases of tea, coffee, rubber and cocoa
5. priority distribution to landless laborers
6. compensation payable is well below the market price so that it is
with in the capacity of allottees.
Progress in distribution of surplus land and implementation of ceiling
laws

Land reform an appraisal


Poor performance of the programmeThe lack of political will
Absence of pressure from below because poor
peasants and farmers are passive and unorganized
Apathetic attitude of bureaucracy
Absence of up to date land records
Legal hurdles
The problem is to break the stranglehold of the

vested interests in land and the legal support given


by the judiciary.

Size of farms and productivity efficiency


Meaning of economic holding: a holding which allows a man a

chance of producing sufficient to support himself and his family in


reasonable comfort after paying his necessary expenses.
Family holding: the area of land which yields a net annual income

(including remuneration for family labour) of Rs. 1,200 (1956 prices)


Optimum holding: Maximum size of a holding which a family should

posses. 3 times the family holding was considered adequate.


Factors affecting on economic size holding
1. the fertility of soil
2. method of cultivation
3. nature of the crops

Changing pattern of ownership


Size class

Percentage of
ownership holding

Percentage of area
holding

195354

198283

2003

1953-54

198283

2003

Landless

23.1

11.3

10

Marginal

38.1

55.3

69.6

6.2

12.2

23

Small

13.5

14.7

10.8

10.1

16.5

20.4

a)Subtotal

74.7

81.3

90.4

16.3

28.7

43.4

Semimedium

12.5

10.8

18.4

23.4

22

Medium

9.2

6.5

29.1

29.8

23.1

b)Subtotal

21.7

17.3

47.5

53.2

45.1

c) Large

3.6

1.4

.6

36.1

18.1

11.5

Changing pattern of ownership


Share of marginal and small farmers in the area owned

has been increasing and their percentage of ownership


holding has also rises.
In case of large owners both aspects are declining.
Small and medium farmers are major gainers in terms

of total area operated.

Size pattern of operational holding


Operational holding- all land which is used wholly or

partly for agricultural production and is operated as


one technical unit by one person alone or with others
without regard to the title, legal form, size or location.
Two trends in farm size
There has been growing division of agricultural holdings
Gradual but positive shift in favor of small and marginal

holdings.

Average size of operational holding in India (in


hectares)

1970-71
1990-91 2000-01
Rajasthan
5.46
4.11
3.65
West Bengal
1.2
0.9
0.82
Punjab
2.89
3.61
4.03
Andhra
Pradesh
2.51
1.56
1.25
All India
2.28
1.57
1.32

Farm size, productivity and efficiency


Farm productivity refers output per unit of land

whereas farm efficiency refers to surplus value of


output over all costs.
Inverse relation between farm size and prodcutivity
Amartya Sen proposes an inverse relationship between
farm size and productivity
Higher input of family labour in small firm and imputed
value of labor makes agriculture unprofitable in India
Considerable debate on farm size and productivity
Green revolution produces an evidence of closing up of
the productivity gap between small and large farms

Farm size and profitability


Much of Indian agricultures are unremunerative and

that profitability increases with the size of holdings.


Policy implications
1. imposition of land ceiling retains its justification on
efficiency and equity consideration-means land ceiling
become stronger.
2. inequality in land ownership should be remedied
through appropriated policy instruments

Problem of sub-division and


fragmentation
Causes of small size of holding
Growing population
The law of inheritance
The decline of joint family system
The decline of handicrafts and village industries
Rural indebtedness and indigenous money

lenders
Problem of fragmentation
Hinder the use of improved agricultural facilities
Wastage of land in boundaries

Remedies for sub-division


1. Creation of economic holding included fixation of
ceiling, farmers with small holdings to be induced to
seek alternative employment in rural industries and
joining land as economic holdings. Difficult to
implement as land very fragmented and emotions
attached.
2. Consolidation of holding (successful in Punjab,
Haryana and Western U.P.) 49% land total cultivable
land is consolidated.
Not much support from farmers.
Farmers with better land may not be interested.
Cumbersome process.

Co-operative farming
A co-operative farming society is a voluntary organization of

farmers based on ideals of self-help and mutual aid. With the


objectives of increase in production and employment,
improvement in techniques of production, rationale use of
land and most desirable allocation of man-power resources.
According to the Planning Commission (1961), the main
features of the co-operative farming- Members pool their
lands, manpower and other resources willingly in a single unit.
Since it is a voluntary association, members can withdraw any
time. The farming is done on co-operative lines i.e. it is
cultivated jointly. Ownership of the land generally lies in the
hands of the individual members i.e. the right to land is never
surrendered. Management is jointly conducted by a committee
elected from the members.

Co-operative farming-kinds
Tenant farming: society provides common facilities and

members pay for it. Every member pays rent for the
holding and keeps the output of holding.
Collective farming: classic case of cooperative farming;
Adat farmers cooperative bank in Kerala (2400 farmers)
Better farming: objective is to use better methods of
farming
Joint farming: Ownership is retained

Problems:
Hierarchies still maintained
Provided scope for development of absentee land
owners