Indian Government Promoting Investment In Agriculture Economics Essay

Indian presidency Promoting Investment In upgradeing Economics EssayThe main objectives of the administrations de edgeine policy for inelegant establish, aims at ensuring remunerative prices to the growers for their evoke with a cipher to encourage high investment and action. Towards the end, minimum support prices for major(ip) plain products argon announced each year which argon fixed afterwards taking into account, the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP while recommending prices takes into account essential factors, viz.Cost of ProductionChanges in Input PricesInput/ issue Price paratrooperTrends in Market PricesInter-crop Price Parityrequirement and Supply SituationEffect on Industrial Cost organizeEffect on General Price LevelEffect on Cost of LivingInternational Market Price SituationParity in the midst of Prices Paid and Prices Received by heighteners (Terms of art).EXIM PolicyEXIM Policy is the exportingin g import policy of the presidency that is announced every five years. It is withal known as the Foreign Trade Policy. This policy consists of general eatable regarding exports and imports, promotional measures, duty exemption schemes, export promotion schemes, redundant scotch zone programs and different details for un handle empyreans. Every year the government announces a supplement to this policy.The EXIM Policy of 2002-2007 (External website that opens in a cutting window) stress the importance of verdant exports and announced measures like the setting up of agri export zones, removal of procedural restrictions and merchandise cost avail. Agri Export Zones are considered the virtu whollyy important universe of discourse of this policy Agri Export Zones (External website that opens in a tonic window)Agri Export Zones were formed as a result of this policy. These zones are meant to campaign hoidenish exports from the country and provide remunerative returns to the commonwealth union regularly. They are to be identified by the State Government, which would evolve a statewide package of utility to be provided by all(prenominal) State Government agencies, State Agriculture Universities and all institutions and agencies of the Union Government for intensive sales talk in these zones. Corporate area companies with proven credentials would be advance to sponsor newborn agri export zones or take over already notified agri export zones.Services that would be managed and coordinated finished this scheme let in the provision of pre/post harvest operations, plant certificate, processing, packaging, stock and related inquiry and instruction. APEDA go away supplement, within its schemes and provisions, the efforts of State Governments for facilitating exports. Click here for a nominate of the Agri Export Zones.After, a change of government at the cen beatre, a new EXIM Policy of 2004 2009 was announced. This policy came up with expor t promotional measures such as Towns of Export Excellence, Target positivistic, Free Trade and Wareho employ Zones and the Vishesh Krishi Upaj Yojana.Here are details on these schemesTowns of Export Excellence Here, towns in specific field of honors that produce goods of Rs.250 crores and above in the handloom, tillage, handicraft and weighteries arena exit be notified as Towns of Exports Excellence on the basis of their latent for initiatement in exports. They allow be granted this recognition to maximize their potential, enable them to move higher in the value chain and tap new securities industry places.Target Plus In this scheme, exporters who collapse attained a large increase in step-up of exports would be allowed duty free cite chemical groupd on incremental exports inviolablely higher than the general actual export taper fixed. Rewards testament be granted according to a tiered approach. For incremental offset of over 20, 25 and cytosine per cent, the d uty free credit would be 5, 10 and 15 per cent of Free on visiting card (FOB) value of incremental exports.Vishesh Krishi Gram Udyog Yojana It aims to countenance exports of fruits, vegetables, flowers, fruits, and other value-added products. This year it has been spread proscribed to include soybean and coconut oil as substantially as victuals preparations such as soups. Plus, the benefit of the scheme has been extended to 100 per cent export-oriented units.Import and ExportSince Independence, India has do a lot of senesce in market-gardening in terms of growth in output, cushions and area under crops. It has gone by dint of a Green Revolution (food grains), a White Revolution (milk), a Yellow Revolution (oil cums) and a zesty Revolution (aquaculture). Today, India is one of the largest producers of milk, fruits, cashew nuts, coconuts and tea in the world. It is in like manner wellhead known for the exertion of wheat, vegetables, sugar, fish, tobacco and rice.Certa in types of market-gardening such as horticulture, ingrained body politic, floriculture, hereditary engineering, packaging and food processing have the potential to see a surge in revenues through exports. everywhere the yesteryear few years, the government has stressed on the breeding of horticulture and floriculture by creating vital root word for cold stock, refrigerated transportation, packaging, processing and quality constraint. If India wishes to optimize the production and export potential of these commodities, then it is essential to advance these facilities, merchandise and export networks much further.In recent years, the Central Government has offered different fiscal incentives for cave ining storage facilities in plain areas. It as well as provides financial assistance to the State Governments for acquiring and distributing food grains at subsidized rates, especially to families with one-year income below the poverty delimitate. Today, the mendd ava ilability of bank credit through precedency lending, prospering terms of employment and liberalized domestic and external trade for outlandish commodities have also boost private players to invest in agriculture.The major thrust of the policies and programmes of the Government of India relating to enhance animal and fisheries is in the areas of rapid genetic upgradation of milch animals, improvement in the delivery mechanism of teaching foreplays, instruction of animal diseases, creation of disease free zones, increased availability of alimental feed, development of dairy activities and backyard poultry, development of processing and market facilities and enhancement of production and profitability of livestock.Agricultural Exports (External website that opens in a new window)Agricultural exports have shown an increase (External website that opens in a new window) from around Rs.60 billion in 1990 91 to Rs.398 billion in 2005-06. The Governments special efforts to encou rage export of food grains in recent years through grant of World Trade Organization (External website that opens in a new window) or WTO compatible subsidies has soupcon to India becoming one of the leading exporters of food grains in the international marketAgricultural Imports (External website that opens in a new window)The imports of clownish products (External website that opens in a new window) improved from Rs.12 billion in 1990 91 to Rs.220 billion in 2005- 06. The share of agri-imports to total merchandise imports in 2005-06 was 4.59 percent. Edible oil is the unmarried largest agricultural product imported into the country and accounts for around two-thirds of the total agricultural imports.NEW AGRICULTURE POLICYAgriculture is a way of life, a tradition, which, for centuries, has shaped the thought, the outlook, the culture and the stinting life of the people of India. Agriculture, therefore, is and bequeath relate to be central to all strategies for planned socio- sparing development of the country. Rapid growth of agriculture is essential not only to achieve self-reliance at national level but also for ho substance abusehold food credential and to bring about equity in distribution of income and wealth resulting in rapid reduction in poverty levels.Indian agriculture has, since Independence, made rapid strides. In taking the annual foodgrains production from 51 billion tonnes in early fifties to 206 million tonnes at the turn of the century, it has contributed significantly in achieving self-sufficiency in food and in avoiding food shortages.Over 200 million Indian farmers and farm workers have been the backbone of Indias agriculture. condescension having achieved national food security the well being of the farming community continues to be a matter of grave concern for planners and policy shamblers. The brass section of an agrarian economy which ensures food and nutrition to Indias billion people, raw materials for its expanding indu strial base and surpluses for exports, and a decent and equitable reward system for the farming community for the services they provide to the society, leave alone be the mainstay of reforms in the agriculture sector.The National Policy on Agriculture seeks to actualise the enormous untapped growth potential of Indian agriculture, strengthen rude infrastructure to support faster agricultural development, invoke value plus, accelerate the growth of agro business, create employment in hobnailed areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation. Over the next two decades, it aims to attainThe conspicuous features of the new agricultural policy areOver 4 per cent annual growth rate aimed over next two decades.. great private sector participation through signalise farming.Price hold dearion for farmers.National a gricultural insurance scheme to be launched.Dismantling of restrictions on driving force of agricultural commodities throughout the country.Rational utilisation of countrys wet resources for optimal use of irrigation potential.High precedency to development of animal husbandry, poultry, dairy and aquaculture. metropolis inflow and assured markets for crop production.Exemption from payment of capital gains valuate on compulsory acquisition of agricultural land.Minimise fluctuations in goodness prices.Continuous monitor of international prices.Plant varieties to be protected through a legislation.Adequate and seasonably add on of quality inputs to farmers.High antecedency to rural electrification.Setting up of agro-processing units and creation of off-farm employment in rural areas.Sustainable AgricultureThe policy depart seek to promote technically sound, economically viable, environmentally non-degrading, and socially acceptable use of countrys natural resources land, wa ter and genetic endowment to promote sustainable development of agriculture. Measures entrusting be taken to contain biotic pressures on land and to control indiscriminate diversion of agricultural lands for non-agricultural purposes. The unutilized mufflands go forth be put to use for agriculture and afforestation. Particular attention testament be give-up the ghostn for increase cropping warmth through multiple-cropping and inter-cropping.Rational utilization and conservation of the countrys abundant water resources go out be promoted. Conjunctive use of surface and ground water forget nab highest priority. Special attention volition be focused on water quality and the problem of receding ground-water levels in certain areas as a result of over-exploitation of underground aquifers. Proper on-farm management of water resources for the best use of irrigation potential provide be promoted.Erosion and narrowing of the base of Indias plant and animal genetic resources in the last few decades has been change the food security of the country. Survey and evaluation of genetic resources and safe conservation of both(prenominal) indigenous and exogenously introduced genetic variability in crop plants, animals and their baseless relatives go away receive particular attention. The use of bio-technologies bequeath be promoted for evolving plants which blow less water, are drought resistant, canker resistant, contain more nutrition, give higher yields and are environmentally safe. Conservation of bio-resources through their ex situ saving in Gene Banks, as also in situ conservation in their natural habitats through bio-diversity parks, etc., lead receive a high priority to prevent their extinction. Specific measures depart also be taken to uphold indigenous breeds facing extinction. There allow be a time bound programme to list, catalogue and classify countrys vast agro bio-diversity.Sensitization of the farming community with the environmental c oncerns go out receive high priority. Balanced and connexion use of bio-mass, organic and inorganic fertilizers and controlled use of agro chemicals through incorporated intellectual nourishments and pest management (INM IPM) will be promoted to achieve the sustainable increases in agricultural production. A nation-wide programme for utilization of rural and urban garbage, farm residues and organic waste for organic matter repletion and pollution control will be worked out.Agro-forestry and social forestry are prime requisites for maintenance of ecological quietus and augmentation of bio-mass production in agricultural systems. Agro-forestry will receive a major thrust for efficient nutrient cycling, nitrogen fixation, organic matter step-up and for improving drainage. Farmers will be encouraged to take up farm/agro-forestry for higher income generation by evolving technology, extension and credit support packages and removing constraints to development of agro and farm forest ry. Involvement of farmers and landless labourers will be sought in the development of pastures/forestry programmes on earth wastelands by giving financial incentives and entitlements to the usufructs of trees and pastures.The record and traditional intimacy of agriculture, specially of tribal communities, relating to organic farming and economy and processing of food for nutritionary and medicinal purposes is one of the oldest in the world. accommodative efforts will be made to pool, distil and evaluate traditional practices, knowledge and wisdom and to harness them for sustainable agricultural growth.Food and Nutritional earnestSpecial efforts will be made to raise the productivity and production of crops to get together the increasing require for food god by unabated demographic pressures and raw materials for expanding agro-based industries. A regionally differentiated strategy will be prosecute, taking into account the agronomic, climatic and environmental conditio ns to realize the full growth potential of every region. Special attention will be minded(p) up to development of new crop varieties, particularly of food crops, with higher nutritional value through adoption of bio-technology particularly genetic modification, while addressing bio-safety concerns.A major thrust will be given to development of rainfed and irrigated horticulture, floriculture, grow and tubers, plantation crops, aromatic and medicinal plants, bee-keeping and sericulture, for augmenting food supply, exports and generating employment in rural areas. Availability of hybrid seeds and disease-free planting materials of improved varieties, supported by a network of regional nurseries, tissue culture laboratories, seed farms will be promoted to support systematic development of horticulture having emphasis on increased production, post-harvest management, precision farming, bio-control of pests and quality regulation mechanism and exports.Animal husbandry and fisheries a lso generate wealth and employment in agriculture sector. Development of animal husbandry, poultry, dairy farming and aqua-culture will receive a high priority in the efforts for diversifying agriculture, increasing animal protein availability in the food basket and for generating exportable surpluses. A national livestock breeding strategy will be evolved to meet the requirements of milk, meat, egg and livestock products and to enhance the role of draught animals as a source of nil for farming operations and transport. Major thrust will be on genetic upgradation of indigenous/native cattle and buffaloes using proven semen and high quality pedigreed bulls and by expanding mushy insemination network to provide services at the farmers doorstep.Generation and dissemination of sequester technologies in the field of animal production as also wellness care to enhance production and productivity levels will be given greater attention. Cultivation of fodder crops and fodder trees will b e encouraged to meet the feed and fodder requirements and to improve animal nutrition and welfare. antecedency will also be given to improve the processing, marketing and transport facilities, with emphasis on modernization of abattoirs, carcass utilization and value addition thereon. Since animal disease eradication and quarantine is critical to exports, animal health system will be strengthened and disease-free zones created. The involvement of cooperatives and private sector will be encouraged for development of animal husbandry, poultry and dairy. Incentives for livestock and fisheries production activities will be brought at par with incentives for crop production.An integrated approach to marine and inland fisheries, designed to promote sustainable aquaculture practices, will be adoptive. Bio proficient application in the field of genetics and breeding, harmonal applications, immunology and disease control will receive particular attention for increased aquaculture productio n. Development of sustainable technologies for fin and shell fish culture as also pearl-culture, their yield optimization, harvest and post-harvest operations, mechanization of fishing boats, strengthening of infrastructure for production of fish seed, berthing and landing facilities for fishing vessels and development of marketing infrastructure will be accorded high priority. Deep sea fishing industry will be developed to take advantage of the vast potential of countrys exclusive economic zone.Generation and Transfer of TechnologyA very high priority will be accorded to evolving new location-specific and economically viable improved varieties of agricultural and horticultural crops, livestock species and aquaculture as also conservation and judicious use of germplasm and other bio-diversity resources. The regionalization of agricultural explore, based on identified agro-climatic zones, will be accorded high priority. Application of frontier sciences like bio-technology, remote se nsing technologies, pre and post-harvest technologies, energy saving technologies, technology for environmental protection through national research system as well as proprietary research will be encouraged. The go-ahead will be to build a well organized, efficient and result-oriented agriculture research and education system to introduce technological change in Indian agriculture. Upgradation of agricultural education and its orientation towards concord in education standards, women empowerment, user-orientation, vocationalization and promotion of excellence will be the stylemark of the new policy..The research and extension linkages will be strengthened to improve quality and effectiveness of research and extension system. The extension system will be broad-based and revitalized. Innovative and decentralized institutional changes will be introduced to make the extension system farmer-responsible and farmer-accountable. Role of Krishi Vigyan Kendras (KVKs), Non-Governmental Orga nizations (NGOs), Farmers Organizations, Cooperatives, corporate sector and para-technicians in agricultural extension will be encouraged for organizing demand-driven production systems. Development of human being resources through capacity building and skill upgradation of public extension functionaries and other extension functionaries will be accorded a high priority. The Government will cause to move towards a regime of financial sustainability of extension services through effecting in a phased manner, a more realistic cost recovery of extension services and inputs, while simultaneously safeguarding the interests of the poor and the undefendable groups.Mainstreaming gender concerns in agriculture will receive particular attention. discriminate structural, functional and institutional measures will be initiated to empower women and build their capabilities and improve their access to inputs, technology and other farming resources.Inputs ManagementAdequate and timely supply o f quality inputs such as seeds, fertilizers, plant protection chemicals, bio-pesticides, agricultural machinery and credit at reasonable rates to farmers will be the endeavour of the Government. Soil testing and quality testing of fertilisers and seeds will be ensured and supply of spurious inputs will be checked. Balanced and optimum use of fertilizers will be promoted together with use of organic manures and bio-fertilizers to optimize the efficiency of nutrient use.Development, production and distribution of improved varieties of seeds and planting materials and strengthening and expansion of seed and plant certification system with private sector participation will receive a high priority. A National Seed storage-battery grid will be established to ensure supply of seeds especially to areas change by natural calamities. The National Seeds Corporation (NSC) and State Farms Corporation of India (SFCI) will be restructured for efficient utilization of investment and manpower.Prot ection to plant varieties through a sui generis legislation, will be granted to encourage research and breeding of new varieties particularly in the private sector in line with Indias obligations under TRIPS Agreement. The farmers will, however, be allowed their traditional rights to save, use, exchange, share and sell their farm protected seeds except as branded seeds of protected varieties for commercial purpose. The interests of the researchers will also be safeguarded in carrying out research on proprietary varieties to develop new varieties.Integrated pest management and use of biotic agents in order to minimize the indiscriminate and injudicious use of chemical pesticides will be the cardinal principle covering plant protection. Selective and eco-friendly farm mechanization through appropriate technology will be promoted, with special reference to rainfed farming to reduce arduous work and to make agriculture efficient and competitive as also to increase crop productivity.Ince ntives for AgricultureThe Government will endeavour to create a favourable economic environment for increasing capital formation and farmers own investments by removal of distortions in the incentive regime for agriculture, improving the terms of trade with manufacturing sectors and saving about external and domestic market reforms backed by rationalisation of domestic levy structure. It will seek to bestow on the agriculture sector in as many respects as affirmable benefits similar to those obtaining in the manufacturing sector, such as easy availability of credit and other inputs, and infrastructure facilities for development of agri-business industries and development of effective delivery systems and freed movement of agro produce.Consequent upon dismantling of Quantitative Restrictions on imports as per WTO Agreement on Agriculture, commodity-wise strategies and arrangements for protecting the grower from adverse impact of undue price fluctuations in world markets and for p romoting exports will be formulated. Apart from price competition, other aspects of marketing such as quality, choice, health and bio-safety will be promoted. Exports of horticultural produce and marine products will receive particular emphasis. A two-fold long term strategy of diversification of agricultural produce and value addition modify the production system to respond to external environment and creating export demand for the commodities produced in the country will be evolved with a view to providing the farmers incremental income from export earnings. A favourable economic environment and supportive public management system will be created for promotion of agricultural exports. Quarantine, both of exports and imports, will be given particular attention so that Indian agriculture is protected from the ingress of exotic pests and diseases.In order to protect the interest of farmers in context of removal of Quantitative Restrictions, continuous monitoring of international pri ces will be undertaken and appropriate tariffs protection will be provided. Import duties on manufactured commodities used in agriculture will be rationalized. The domestic agricultural market will be liberalized and all controls and regulations hindering increase in farmers income will be reviewed and abolished to ensure that agriculturists receive prices commensurate with their efforts, investment. Restrictions on the movement of agricultural commodities throughout the country will be progressively dismantled.The structure of taxes on foodgrains and other commercial crops will be reviewed and rationalized. Similarly, the excise duty on materials such as farm machinery and implements, fertilizers, etc., used as inputs in agricultural production, post harvest storage and processing will be reviewed. Appropriate measures will be adopted to ensure that agriculturists by and large remain outside the regulatory and tax collection systems. Farmers will be exempted from payment of capital gains tax on compulsory acquisition of agricultural land.Investments in AgricultureThe agriculture sector has been starved of capital. There has been a decline in the public sector investment in the agriculture sector. Public investment for narrowing regional imbalances, accelerating development of supportive infrastructure for agriculture and rural development particularly rural connectivity will be stepped up. A time-bound strategy for rationalisation and candid pricing of inputs will be formulated to encourage judicious input use and to generate resources for agriculture. Input subsidy reforms will be chased as a combination of price and institutional reforms to cut toss off costs of these inputs for agriculture. Resource allocation regime will be reviewed with a view to rechannelizing the available resources from support measures towards assets formation in rural sector.A conducive climate will be created through a favourable price and trade regime to promote farmers own inve stments as also investments by industries producing inputs for agriculture and agro-based industries. Private sector investments in agriculture will also be encouraged more particularly in areas like agricultural research, human resource development, post-harvest management and marketing.Rural electrification will be given a high priority as the prime agent for agricultural development. The quality and availability of electricity supply will be improved and the demand of the agriculture sector will be met commensurately in a reliable and cost effective manner. The use of new and renewable sources of energy for irrigation and other agricultural purposes will also be encouraged.Bridging the gap between irrigation potential created and utilized, completion of all on-going projects, restoration and modernization of irrigation infrastructure including drainage, evolving and implementing an integrated plan of augmentation and management of national water resources will receive special a ttention for augmenting the availability and use of irrigation water.Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage and transportation with a view to reducing post-harvest losses and ensuring a better return to the grower. The weekly periodic markets under the direct control of panchayet Raj institutions will be upgraded and strengthened. Direct marketing and pledge financing will be promoted. Producers markets on the lines of Ryatu Bazars will be encouraged throughout the breadth and breadth of the country. Storage facilities for different kinds of agricultural products will be created in the production areas or nearby places particularly in the rural areas so that the farmers can transport their produce to these places immediately after harvest in shortest possible time. The establishment of cold chains, provision of pre-cooling facilities to farmers as a service and cold storage in the terminal markets and improving the retail marketing arrangements in urban areas, will be given priority. Upgradation and dissemination of market intelligence will receive particular attention.Setting up of agro-processing units in the producing areas to reduce wastage, especially of horticultural produce, increased value addition and creation of off-farm employment in rural areas will be encouraged. Collaboration between the producer cooperatives and the corporate sector will be encouraged to promote agro-processing industry. An interactive coupling between technology, economy, environment and society will be promoted for speedy development of food and agro-processing industries and building up a substantial base for production of value added agro-products for domestic and export markets with a rigid emphasis on food safety and quality. The Small Farmers Agro Business family (SFAC) will be energized to cater to the needs of farmer entrepreneurs and promote public and private investments in agri-business.Institution al StructureIndian agriculture is characterized by pre-dominance of small and marginal farmers. Institutional reforms will be so pursued as to channelize their energies for achieving greater productivity and production. The approach to rural development and land reforms will focus on the following areasConsolidation of holdings all over the country on the pattern of north-western StatesRedistribution of ceiling surplus lands and waste lands among the landless farmers, unemployed youth with initial start-up capitalTenancy reforms to have sex the rights of the tenants and share croppersDevelopment of lease markets for increasing the size of holdings by make legal provisions for giving private lands on lease for coating and agri-businessUpdating and improvement of land records, computerization and issue of land pass-books to the farmers, and actualisation of womens rights in land.The rural poor will be increasingly conglomerate in the implementation of land reforms with the help of Panchayati Raj Institutions, Voluntary Groups, Social Activists and society Leaders.Private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured markets for crop production, especially of oilseeds, cotton and horticultural crops.Progressive institutionalization of rural and farm credit will be continued for providing timely and adequate credit to farmers. The rural credit institutions will be geared to promote savings, investments and risk management. Particular attention will be paid to removal of distortions in the priority sector lending by commercial banks for agriculture and rural sectors. Special measures will be taken for revamping of cooperatives to remove institutional and financial weaknesses and evolving simplified procedure for sanction and disbursement of agriculture credit. The endeavour will be to ensure distribution equity in the disbursement of credit. Mic ro-credit will be promoted as an effective tool for alleviating poverty. Self patron Group Bank linkage system, suited to Indian rural sector, will be developed as a supplementary mechanism for saving the rural poor