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SECTORAL REFORMATION OF AGRICULTURE SECTOR
INDUSTRY IN INDIA
PRESENTED BY,GROUP NO.3ANOOP S NAIRADARSH SURESHCHAITHANYA C
1. INTRODUCTION
1.1 AGRICULTURAL SECTOR IN INDIA
• Overall growth of the economy.
• Provides employment and food security to majority of the population in the country.
• Employs 60% of India’s population.
• Accounts for 8.56% of India’s exports.
• Contributes around 13.9 percent to the GDP.
• About 43% of India's geographical area is used for agricultural activity Decline of its
share in the GDP.
• Monsoons play a critical role in agriculture.
2. HISTORY OF INDIAN AGRICULTURE
• By 6th millennium BC, Wheat and some legumes were found in Indus
valley.
• By 4000 BC, wheat, peas, and mangoes.
• By 3500 BC, cotton and cotton textiles were found in the valley.
• By 3000 BC, rice and sugar cane had started.
• By 2500 BC, rice was an important component of the staple diet in
Mohenjodaro .
• By 2000 BC, tea, bananas and apples were being cultivated.
3. AGRICULTURE AT THE TIME OF INDEPENDENCE
At the time of Independence, India inherited a semi-feudal
agrarian structure with onerous tenure arrangements.
The ownership and control of
land was highly concentrated in a few landlords
and intermediaries.
Thus, the agricultural
land resource of India was
gradually impoverished
because economic motivation
tended towards exploitation rather than investment.
3. CAUSES FOR INTRODUCTION OF NEW REFORMS IN AGRICULTURE
• Agriculture has been practised in India for thousands of years.
• Continued uses of land without well-matched techno-institutional reforms lead
to slow down in the pace of agricultural development.
• In spite of development in irrigation most of the farmers in large parts of the
country still depend upon monsoon and natural fertility of soil.
• Our population grew at fast rate than agriculture production.
• A lot of injustice done with farmers with the current prices for their
production.
• Famines, droughts and other disasters ruined the entire crop produced
putting farmers in dilemma.
Reforms After Independence
4. ABOLITION OF INTERMEDIARIES
• Intermediaries like Zamindars, Talukdars, Jagirs and Inams had dominated the agricultural sector in India by the time the country attained independence.
• Soon after independence, measures for the abolition of the Zamindari system were adopted in different states. The first Act to abolish intermediaries was passed in Madras in 1948.
• As a result of the abolition of intermediaries, about 2 crore tenants are estimated to have come into direct contact with the State making them owners of land.
• The abolition of intermediaries has led to the end of a parasite class. More lands have been brought to government possession for distribution to landless farmers.
Tenancy
Reforms
Security of
Tenure
Fair RentOwnersh
ip Rights
4.1 SECURITY OF TENURE
To protect tenants from eviction and to grant them permanent rights on lands, laws have been enacted in most of the states. They have three essential features.
(a) Tenants cannot be evicted without any reason. They can be evicted only in accordance with the laws.
(b) Land can be resumed by the landlord only on the ground of personal cultivation. But the land-lord can resume the land only up to a maximum limit.
(c) The landlord should leave some area to the tenant for his own cultivation. The tenant in no case should be made landless.
4.2 REGULATION OF RENT
• In Pre-Independent India rents were high for obvious reasons. Fifty per cent of the total produce was paid as rent.
• In addition to such high rent, the tenant had to provide certain free services to landlords.
• So at the beginning of the First Plan, the Central Government insisted on the regulation of high rent by State Governments.
• It was laid down that the rent to be paid to the landlord should not be more than 20 to 25 per cent. The main objective of such Acts was to make the rent fair and reasonable.
4.3 RIGHT OF OWNERSHIP
•So far as right of ownership is concerned, tenants have been declared as the owners of the land they cultivate. They have to pay compensation to the owners. The amount of compensation should not exceed the level of fair rent.
• As a result of these measures about 40 lakh tenants have
already acquired ownership rights over 37 lakh hectares of land. They have become better-off economically and socially.
Ceiling on land holdings implies the fixing of the maximum amount of land that an individual or family can possess.
Economic Rationality of Land Ceiling:According to some economists small farms are more efficient than large farms. They require less capital compared to the large farms.
Social Rationality of Land Ceiling:In a poor country like India the supply of land is limited and number of claimants is large. Hence it is socially unjust to allow small number of people to hold large part of land.
5. CEILING ON LAND HOLDINGS
6. CONSOLIDATION OF HOLDINGS
Consolidation of Holdings means bringing together the various small plots of land of a farmer scattered all over the village as one compact block, either through purchase or exchange of land with others.
In Orissa, the Consolidation Act was passed in 1972. The work of consolidation has been completed fully in Punjab and Haryana. So far, about one- third of the total cultivated land has been consolidated.
There are various obstacles to the speedy implementation of the consolidation programme. These are poor response from cultivators, wide variation in the quality of land, complicated process of land consolidation, lack of enforcing machinery, lack of political will etc.
7. NATIONAL AGRICULTURAL INSURANCE SCHEME
Keeping in view the demands of States for improving scope and contents of CCIS, a broad-based National Agricultural Insurance Scheme (NAIS) has been introduced in the country with the following objectives: a. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests and diseases. b. To encourage the farmers to adopt progressive farming practices, high value inputs and higher technology in Agriculture.
c. To help stabilize farm incomes, particularly in disaster years.
Scope of the scheme
The scheme was available to all states and union territories
on optional basis. Currently the scheme
has been implemented in 23
states and two union territories.
Farmers coveredAll farmers including
sharecroppers and tenant farmers
growing notified crops in notified areas are eligible
for coverage under the scheme.
However, it is compulsory for
farmers availing crop loans from
financial institutions.
Risks coveredThe scheme provides comprehensive risk insurance against yield losses due to
natural fire and lightening, storm, hailstorm, cyclone, typhoon, tempest, hurricane, tornado flood, inundation
and landslide, drought, dry spells,
and pests / diseases etc.
However losses arising out of war and nuclear risks, malicious damage
and other preventable risks shall be excluded.
Crops coveredThe scheme besides food and oilseed crops also covered annual commercial and horticultural crops. The crops covered in various states fall under the following groups:Food crops (cereals, millets and pulses): Wheat, Paddy, Jowar, Bajra, Maize, Ragi, etc.
Oilseeds: Groundnut, Sunflower, Soya bean, Safflower, Sesame, Niger, Caster. Annual commercial/horticultural crops: Sugarcane, Cotton, Potato, Onion,Chilly, Turmeric, Ginger, Coriander, Cumin, Fennel, Fenugreek, Isabgol, Jute, Tapioca, Banana, Pineapple, etc. However mangoes, apples, grapes and oranges are not yet covered.
Benefits Expected from the Scheme The scheme is expected to: 1)be a critical instrument of development in the field of crop production, providing financial support to the farmers in the event of crop failure,
2) encourage farmers to adopt progressive farming practices and better technology in agriculture,
3) help in maintaining flow of credit.
8. KISAN CREDIT CARD
Kisan Credit Card (KCC) scheme introduced in 1998-99 was a step towards facilitating the access to Short Term (ST) credit for the borrowers from the financial institutions. The scheme was conceived as a unique credit delivery mechanism, which aimed at provision of adequate and timely supply of ST credit to the farmers to meet their crop production requirements.
Under the earlier system, disbursal of short-term credit to agriculture was mostly through demand loans and cash credit, the facilities were, however, given for the period of one year or less, which necessitated execution of fresh documents each season.
Some of the advantages are as under:
i. the card can be used like an ordinary credit card, thus giving a feeling to the farmers that there is an underlying guarantee of getting loan from the bank as long as the earlier loan is repaid
ii. the facility is given for three to five years instead of one year, thus reducing the procedural delays
iii. there is flexibility in operation of the facility in terms of number of withdrawals and in repayment of loan
iv. the system on its own allows the borrowers to get their loans rescheduled in case of natural calamities, etc. and
v. certain new features, such as, personal insurance for all the card hoders ranging from Rs 25,000 to Rs 50,000 against permanent disability or accidental death, an effective measure for risk mitigation, were also incorporated in the scheme.
THANK YOU....
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