CP Cropping Pattern Self Notes

8/10/2019 CP Cropping Pattern Self Notes

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Major Crops- Cropping patterns in various parts of the country

Multiplicity of cropping systems has been one of main features of Indian agriculture and it is attributed to rain-fedagriculture and prevailing socio-economic situations of farming community. It has been estimated that more than 250double cropping systems are followed throughout the country and based on rationale of spread of crops in eachdistrict in the country, 30 important cropping systems have been identified.

Cropping systems of a region are decided by and large, by a number of soil and climatic parameters which determine

overall agro-ecological setting for nourishment and appropriateness of a crop or set of crops for cultivation.Nevertheless, at farmers level, potential productivity and monetary benefits act as guiding principles while opting fora particular crop/cropping system. These decisions are further narrowed down under influence of several other forcesrelated to infrastructure facilities, socio-economic factors and technological developments , all operating interactivelyat micro-level.

Infrastructure facilities : Irrigation, transport, storage, trade and marketing, post-harvest handling and processing etc.

Socio-economic factors : Financial resource base, land ownership, size and type of land holding, household needs offood, fodder, fuel, fibre and finance, labour availability etc.

Technological factors : Improved varieties, cultural requirements, mechanization, plant protection, access toinformation, etc.

Multiplicity of cropping systems has been one of the main features of Indian agriculture. This may be attributed tofollowing two major factors:

1. Rain-fed agriculture still accounts for over 92.8 million hectare or 65 per cent of cropped area . A large diversityof cropping systems exists under rain-fed and dry land areas with an overriding practice of intercropping , dueto greater risks involved in cultivating larger area under a particular crop

2. Due to prevailing socio-economic situations (such as dependency of large population on agriculture, smallland-holding size, very high population pressure on land resource etc.), improving household food security hasbeen an issue of supreme importance to many million farmers of India. An important consequence of this hasbeen that crop production in India remained to be considered, by and large, a subsistence rather thancommercial activity

Cropping Systems in Irrigated Ecosystems

Depending upon the natural water resources, each region has certain area under irrigated agriculture. But, broadlyconsidering, two distinct irrigated ecosystems emerge . One is Indo-Gangetic Plain region comprising the states ofPunjab, Haryana, plains of Uttar Pradesh, Bihar and plains of Jammu & Kashmir. The other ecosystem may be carvedout of coastal areas of Andhra Pradesh and Tamil Nadu.

Estimates indicate that more than 56 per cent of total food grain comes from irrigated ecosystem while progress hasbeen considerably sluggish in rain fed agriculture which still accounts for 92.8 million hectare or 65 per cent of net areasown and contributes only 44 per cent to national food grain production. Among the states, Punjab ranks first with94.6 per cent cropped area under irrigation followed by Haryana (76.4%) and Uttar Pradesh (62.3%).

Issues in Irrigated Cropping Systems

1. Adequate information is lacking on site-specific characterization of land and water resources and climaticparameters, which is crucial for efficient land use planning and resource deployment


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2. Inadequate effort or lack of mechanisms to build up research programmes that take into account theexperience and knowledge base that exists within the farming community.

3. It has been hardly realized that field problems to which solutions are sought are rarely amenable to solutions through a single component/discipline oriented research. System oriented production research is needed to bestrengthened as it is essential for maximizing land productivity by harnessing synergies generated throughvarious interactions in soil-crop systems. Cropping system approach of resource management has beenshowing immense potential in enhancing resource use efficiencies and pest management.

4. Despite the fact that water is a precious and scarce resource, its application and use efficiencies have beenquite low . Low water use efficiency is apparently attributable to:1. Excessive use of water due to

a. improper leveling of fields coupled with improper application methods, even in agriculturallyadvanced areas,

b. faulty pricing policy for electricity and canal water leading to over irrigation2. Non-adoption of appropriate cropping systems . For example

a. Extensive cultivation of rice in sandy soils of Punjabb. Advance of rice transplanting to April/May in Punjab and Haryana

5. Soil salinity hazards due to ground water rise and impeded natural drainage in certain canal command areas

are well known6. The excessive pumping of ground water for irrigation purposes in intensively cultivated areas of Punjab,

Haryana and Western Uttar Pradesh has caused lowering down of the ground water table in certain pockets7. Diversion of highly productive irrigated land to non-agricultural uses ; such as industry, housing etc., specially at

rural-urban interface8. Due to imbalance in fertilizer use , widespread deficiencies of secondary and micro-nutrients and reduced

organic matter contents of cultivated lands, a declining trend for responses to nutrients , specially to nitrogen,in major cropping systems is being observed on farmers fields

9. With crop intensification under high input use, serious threats of occurrence and build up of some obnoxiouspests and diseases have crept in. Heavy infestation of Phalaris minor in continuous rice-wheat cropping

system in north western plains is a glaring example. 10. A potential danger may be envisioned in the form of pollution of natural water bodies and underground

aquifers due to nitrate leaching and phosphates causing irreparable harm to natural ecosystems under high fertilizer use without improving their use efficiencies

Specific issues related to some important cropping systems

1. Rice-Wheat: Rice-Wheat system is the most widely adopted cropping system in the country and has becomemainstay of cereal production. Important issues emerging as a threat to the sustainability of rice-wheat systemare:

Over mining of nutrients from soil Disturbed soil aggregates due to puddling (tillage of flooded soil) in rice Decreasing response to nutrients Declining ground water table Build up of diseases/pests Build up of Phalaris minor Low input use efficiency in north western plains Low use of fertilizer in eastern and central India Lack of appropriate varietal combination Lack of adequate labour


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2. Rice-Rice: Rice-rice is the popular cropping system in irrigated lands in humid and coastal ecosystems of Orissa,Tamil Nadu, Andhra Pradesh , Karnataka and Kerala and it is spread over an area of six million hectares. Themajor issues in sustaining productivity of rice-rice system are:

a. Deterioration in soil physical conditionsb. Micronutrient deficiencyc. Poor efficiency of nitrogen used. Imbalance in use of nutrients

e. Non-availability of appropriate transplanter to mitigate labour shortage during critical period oftransplanting

f. Build up of obnoxious weeds such as Echinochloa crusgalli and non-availability of suitable controlmeasures

In Kerala, reduction in area is mainly attributable to the conversion of paddy lands to more profitable and less labourintensive plantation estates. In Assam, low productivity under prevailing soil and climatic situations, poor drainage insubmerged areas, low nutrient use and iron toxicity are some of the issues of concern.

3. Rice-Mustard: In this cropping system, the yield of Rice is satisfactory in all eco-systems, however, widevariations in yield of mustard were recorded from one ecosystem to another. In general, with a medium orshort duration high yielding rice variety, a successful mustard crop is possible. The mustard crop remains infield up to March and thereafter summer season can be best utilized by another crop to increase theproductivity of the system

4. Rice-Groundnut: Groundnut is basically a Kharif crop grown under rain fed environment however,Rabi/summer groundnut is emerging as an important high value crop under assured irrigation environments.The productivity of Rabi/Summer groundnut is almost double of the yield obtained in Kharif season. It hasbecome possible to grow groundnut on well drained low lying fertile lands after harvest of preceding ricecrop under assured irrigation. The area under summer groundnut in general and rice groundnut sequence inparticular is increasing fast in most of the west and east coastal districts of the country. Excess rainfall receivedduring September/October creates water-logging problems in medium and low lying fertile rice fields andaffects groundnut yield adversely

5. Rice-Pulses: Rice-Pulses cropping system is a dominant crop rotation in Chhattisgarh, Orissa and parts ofBihar . Factors limiting productivity of this cropping system in the region are as follows

a. Physical factorsi. Droughts and erratic distribution of rainfall

ii. Small area under assured irrigationiii. High percolation, resulting in heavy nitrogen losses in red sandy-loam soils , particularly Bhata

soilsb. Input related factors

i. Delayed and prolonged biasi/transplantingii. Low coverage under high yielding varieties (HYVs)

iii. Little attention to timely weed controliv. Inadequate supply of quality seedsv. Little attention to disease/pest control .

c. Social factorsi. Low literacy

ii. Large proportion of marginal and tribal farmersiii. Practices of animal grazing on agricultural lands iv. Low risk bearing capacity of farmers of the region


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6. The pearl millet-wheat is one of the most important cropping systems of the country and spreads overa. arid eco-region comprising, western plain, Kachch and part of Kathiawar Peninsula having desert and

saline soils and representing Gujarat, Rajasthan and Haryanab. semi-arid eco-region comprising northern plains of Haryana , Western Uttar Pradesh (Agra region) and

central highlands including Aravallis, Banswara, Jaipur and Tonk districts of Rajasthan with alluviumderived soil and Gujarat plains and Kathiawar Peninsula Gujarat state, having medium and deep blacksoil

Following issues are some of the concerns of sustainability:

1. Over mining of nutrients

2. Depleting soil fertility

3. Imbalance in fertilizer use

4. Decreasing response to nutrients

5. Lowering groundwater table

6. Build up of diseases/pests and weeds

7. Pearl Millet- Mustard: Pearl millet during Kharif and rapeseed during Rabi have been the most importantcrops of dry land and/or areas with limited water availability under marginal land condition of north-west,west and central parts of India. In several parts of Haryana, Rajasthan, Uttar Pradesh and Madhya Pradeshwhere mono-cropping of pearl millet and mustard was most common, increase in irrigation facilities has madeit possible to grow these crops in sequence. Following are some of the concerns related to pearl millet-mustardsequential cropping system:-

o Delayed sowing of mustard after harvesting pearl millet in Octobero Pearl millet is an exhaustive cereal crop and it depletes soil of essential nutrients o Non-application of sulphur in this area by farmerso Shortage of farm machinery by the farmers in this areao Build up of diseases by continuous cultivation of pearl millet mustard sequence

8. Maize-Wheat: Among maize-wheat growing areas, maize is the principal crop of Kharif season in northern hillsof the country but plains of northern states like Uttar Pradesh, Rajasthan, Madhya Pradesh and Bihar alsohave sizeable acreage under this crop. There are number of reasons for poor yield but the most significant are:

o Sowing timeo Poor plant populationo Poor weed management o Poor use of organic and inorganic fertilizerso Large area under rain fed conditions

As most of the area in maize-wheat system is in rain fed conditions when uncertainty of rainfall is a majorlimitation. This also acts as a deterrent to farmers to adopt intensive input use, leading to deterioration of soilhealth and depletion of major plant nutrients from soil.

9. Sorghum-Wheat: Sorghum-wheat is one of the most prevalent cropping system in Western regions of theCountry , comprising eastern parts of Rajasthan, western and central parts of Madhya Pradesh, WesternMarathwada and Vidarbha regions of Maharashtra, Southern Gujarat, Northern parts of Karnataka and


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Telangana region of Andhra Pradesh. Out of the two component crops of the system, productivity of sorghumfaces wide fluctuations due to some problems. Stiga, a parasitic weed is one of such problems hampering the

productivity of sorghum. Top shoot borer and shoot fly are major insects affecting plant population andreducing yield levels considerably. Fluctuating market prices, usually discourage the sorghum growers,however, sorghum cultivation is indispensable as it is the most important source of fodder for cattle in thisarea.

10. Sugarcane-Wheat: Sugarcane is grown in about 3.4 million hectare. In north India (Uttar Pradesh, Punjab,Haryana and Bihar), which account for 68 per cent of the total area under sugarcane, sugarcane-ratoon-wheatis the most important crop sequence. Problems in sugarcane-wheat system are:

a. Late planting of sugarcane as well as wheatb. Imbalance and inadequate use of nutrients. Since majority of farmers apply only N in sugar cane and

the use of P and K is limited. The emerging deficiencies of P, K, S and micro-nutrients are limitingsystem productivity directly and through interactions with other nutrients

c. Poor nitrogen use efficiency in sugarcaned. Low productivity of ratoon due to poor sprouting of winter harvested sugarcane in north Indiae. Build up of Trianthema partulacastrum and Cyprus rotundus in sugarcane

f. Stubble of sugarcane pose tillage problem for succeeding crops and need to be managed properly

11. Cotton-Wheat: Cotton is widely grown in alluvial soils of north India (Punjab, Haryana, Rajasthan and WesternUttar Pradesh) and black cotton soils of central India (Andhra Pradesh, Tamil Nadu and Karnataka). The majorissues of concern in cotton-wheat cropping system are:

a. Delayed planting of succeeding wheat after harvest of cottonb. Stubbles of cotton create problem of tillage operations and poor tilth for wheatc. Susceptibility of high yielding varieties of cotton to boll worm and white fly and consequently high cost

on their control leading to un-sustainabilityd. Poor nitrogen use efficiency in cotton results in low productivity of the system

e. Appropriate technology for intercropping in widely spaced cotton is needed to be developed12. Soybean-Wheat: Soybean-wheat cropping system has emerged as an important cropping system only after

1980 with the introduction of soybean as a Kharif crop in wheat growing areas of the country particularlyunder irrigated ecosystem. Constraints limiting the soybean production and productivity viz. a relatively recentintroduction of soybean as a crop, limited genetic diversity, short growing period available in Indian latitudes,hindered agronomy/availability of inputs at farm level, rain fed nature of crop and water scarcity at criticalstage of plant growth, insect pests and diseases, quality improvement problems, inadequate mechanization and partial adoption of technology by farmers have been identified

Legume Crops

Legume crops (pulses and oilseeds) are popular for their suitability in different cropping systems. Recent advancesin the development of large number of varieties of pulse and oilseed crops, varying largely for maturity duration,have made it possible to include them in irrigated crop sequences. The popular cropping systems are pigeon pea-wheat in Madhya Pradesh and groundnut-wheat in Gujarat, Maharashtra and Madhya Pradesh and groundnut-sorghum in Andhra Pradesh and Karnataka.

The major issues in legume based cropping systems are:

1. No technological breakthrough has been achieved so far in respect of yield barriers , particularly in legumes


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2. Susceptibility of the pulses to aberrant weather conditions especially water logging and adverse soils makingthem highly unstable in performance

3. High susceptibility to diseases and pests4. Low harvest index, flower drop, indeterminate growth habit and very poor response to fertilizers and water in

most of the grain legumes5. Nutrient needs of the system have to be worked out considering N-fixation capacity of legume crops

Horticultural Crops

The information with regard to cropping pattern in horticultural crops particularly vegetables and tuber crops is notcompiled and readily available.

Vegetable Crops

Low productivity is the main feature of vegetable cultivation in India as farm yields of most of the vegetables in Indiaare much lower than the average yield of world and developed countries. The productivity gap is more conspicuous intomato, cabbage, onion, chilli and peas . Preponderance of hybrid varieties and protected cultivation are mainlyresponsible for high productivity in the developed countries.

Constraints in vegetables production:

Lack of planning in Production Non-availability of seeds of improved varieties High cost of basic production elements Inadequate plant protection measures and non-availability of resistant varieties Weak marketing facilities Transportation limits


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Post harvest losses Abiotic stresses

Tuber Crops

Tuber crops have good potential as secondary staple food, vegetable and industrial raw material. Many of the cropsfind favour with tribals as a rich source of carbohydrates . Many promising varieties of important tuber crops have beenrecommended and suitable agro-techniques and plant protection measures have been standardized. The important

crops are Potato, Sweet potato, Colocasia, Cassava and Lesser yam.

These crops except potato are g rown in poor soils with lesser inputs and even under drought and unfavourableconditions.

Tuber crops, being vegetatively propagated, the multiplication rate is very low. This coupled with the absence of a proper seed distribution agency poses problems in the propagation and spread of the high yielding varieties releasedby the state and national agencies. Lack of proper infrastructure for virus elimination and multiplication of CMD freeplanting material is the real problem which comes in the way of boosting cassava production in non-traditional areas.So, the establishment of an effective seed production and distribution network at the national level is a pre-requisite

for boosting production of tuber crops.

Different types of irrigation and irrigation systems

Various types of irrigation techniques differ in how the water obtained from the source is distributed within the field. Ingeneral, the goal is to supply the entire field uniformly with water, so that each plant has the amount of water itneeds, neither too much nor too little.

1. Surface Irrigation

Surface irrigation is the application of water by gravity flow to the surface of the field . Either the entire field is flooded(basin irrigation) or the water is fed into small channels (furrows) or strips of land (borders).

In surface (furrow, flood, or level basin) irrigation systems, water moves across the surface of agricultural lands, inorder to wet it and infiltrate into the soil. Surface irrigation can be subdivided into furrow, border strip or basinirrigation.

a. Basin Irrigation

Basins are flat areas of land, surrounded by low bunds. The bundsprevent the water from flowing to the adjacent fields. Basin irrigationis commonly used for rice grown on flat lands or in terraces on

hillsides. Trees can also be grown in basins, where one tree is usuallylocated in the middle of a small basin. In general, the basin method issuitable for crops that are unaffected by standing in water for long

periods .

b. Furrow Irrigation

Furrows are small channels, which carry water down the land slopebetween the crop rows. Water infiltrates into the soil as it moves alongthe slope. The crop is usually grown on the ridges between the


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furrows. This method is suitable for all row crops and for crops that cannot stand in water for long periods.

The following crops can be irrigated by furrow irrigation:

1. row crops such as maize, sunflower, sugarcane, soybean 2. crops that would be damaged by inundation, such as tomatoes , vegetables, potatoes, beans 3. fruit trees such as citrus, grape 4. broad cast crops (corrugation method) such as wheat

Furrow irrigation can be divided into

1. Corrugation irrigation

CORRUGATION IRRIGATION is used widely in many parts of the West. With this method you irrigate close-growing crops with small streams of water running in V-shaped furrows or corrugations. The water soaks intothe soil along the corrugations and spreads out sideways into the areas between them. Corrugations aregenerally smaller than the furrows used in irrigating cultivated row crops.

With corrugations you can get good irrigation with a water supply that varies during the irrigation season. It isone of the least expensive irrigation methods to install and is often used on new lands that have had littleleveling or other preparation work.

a. Straight Irrigationi. Level

ii. Gradedb. Contour irrigation

2. Deep Furrow Irrigation

Deep furrows 15 to 30 cm deep, spaced 1 to 2 m apart and of length less than 30 m are useful for orchards andsugarcane . Deep Furrow irrigation is used for soils of low permeability .

a. Straightb. Contour

c. Border strip Irrigation

Borders are long, sloping strips of land separated by bunds . They are sometimes called border strips.

Irrigation water can be fed to the border in several ways: opening up the channel bank, using small outlets or gates orby means of siphons or spiles. A sheet of water flows down the slope of the border, guided by the bunds on either side.Border irrigation is generally best suited to the larger mechanized farms as it is designed to produce longuninterrupted field lengths for ease of machine operations.

2. Localized Irrigation:


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Localized irrigation is a system where water is distributed under low pressure through a piped network, in a pre-determined pattern, and applied as a small discharge to each plant or adjacent to it. Drip irrigation, spray or micro-sprinkler irrigation and bubbler irrigation belong to this category of irrigation methods.

a. Drip Irrigation:

With drip irrigation, water is conveyed under pressure through a pipesystem to the fields, where it drips slowly onto the soil through

emitters or drippers which are located close to the plants. Only theimmediate root zone of each plant is wetted. Therefore this can be avery efficient method of irrigation. Drip irrigation is sometimes calledtrickle irrigation.

Drip irrigation is most suitable for row crops (vegetables, soft fruit),tree and vine crops where one or more emitters can be provided foreach plant . Generally only high value crops are considered because ofthe high capital costs of installing a drip system.

b. Spray Irrigation:

Sprinkler irrigation is similar to natural rainfall. Water is pumpedthrough a pipe system and then sprayed onto the crops throughrotating sprinkler heads.

Sprinkler irrigation is suited for most row, field and tree crops andwater can be sprayed over or under the crop canopy. However, largesprinklers are not recommended for irrigation of delicate crops such aslettuce because the large water drops produced by the sprinklers maydamage the crop.

Sprinklers are best suited to sandy soils with high infiltration rates although they are adaptable to most soils.

c. Bubbler Irrigation:

In this method water is applied to the land surface as a small streamby tubular shaped bubblers that are attached to a buried or on thesurface lateral line. The system is suitable for growing orchards(particularly for trees over two years of age).

3. Sub-irrigation:

Sub-irrigation also sometimes called seepage irrigation has been used for many years in field crops in areas with highwater tables . It is a method of artificially raising the water table to allow the soil to be moistened from below the

plants' root zone . Often those systems are located on permanent grasslands in lowlands or river valleys and


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combined with drainage infrastructure . A system of pumping stations, canals, weirs and gates allows it to increase ordecrease the water level in a network of ditches and thereby control the water table. Sub-irrigation is also used incommercial greenhouse production, usually for potted plants . Water is delivered from below, absorbed upwards, andthe excess collected for recycling.

Sub-irrigation is used in growing field crops such as tomatoes, peppers, and sugar cane in areas with high watertables and in commercial green house operations .

Storage, Transport and Marketing of agricultural produce and issues and related constraints

Agricultural marketing system can b e analyzed by looking at the farmers marketing practices, marketing channels andthe structure of markets. The marketing system and farmers marketing practices have undergone considerablechanges during the last 50 years owing to the expansion of the size of the market, increased availability ofinfrastructure and changes in the pattern of demand and consequently introduction of new methods of processing,packaging, storage and transportation.

Farmers marketing practices and evolution of marketing system are guided by the shelf-life of the commodity . Cottonand jute versus fruits, vegetables and milk are contrasting examples of agricultural products having long and short

shelf-life.

Figure Above: A typical grain marketing system

Main characteristics of Marketing

Optimization of input use and output produced: Agricultural marketing leads to the optimization of resource use andoutput management. An efficient marketing system can contribute to an increase in the marketable surplus by scalingdown the losses arising out of inefficient processing, Storage and transportation

Increase in farm income: An efficient Marketing system guarantees to the farmers better prices for farm products andinduce them to invest their surpluses in the purchase of modern inputs so that productivity may increase

Widening of markets: A well known marketing system widens market for products, by taking them to remote cornersof the countr y, to areas far away from the production point


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e.g. paddy produced in Punjab and Haryana are sold in remote tribal areas

Growth of agro-based industries: The agricultural marketing system helps in the growth of agro-based industries andstimulates the overall development process of the economy

Price movements: An efficient marketing helps the farmers in planning their production in accordance with the need ofthe economy. This work is carried out through the price signals

Adoption and spread of new technology: The marketing system helps the farmers in the adoption of new scientific andtechnical knowledge

Employment: The marketing system provides employment to millions of persons engaged in various activities such as packaging, transportation, storage and processing

Addition to National income: Marketing activities add to the Nation's Gross National Product

Better living: Any plan of economic development that aims at diminishing the poverty of agricultural population,reducing consumer food prices, earning more foreign exchange or eliminating economic waste has to pay specialattention to the development of an efficient marketing for food and agricultural products.

Creation of Utility: Marketing creates the following four types of utilities of the product:

Form Utility: The processing function adds form utility by changing the raw material into finished products e.g.paddy- rice; Wheat- bread, biscuit, cake; Milk- ghee, cream, cheese, skimmed milk, butter

Place Utility: The transportation function adds place utility to products by shifting them to a place of need from the place of plenty e.g. potatoes in plain, milk at urban places

Time Utility: The storage function adds time utility to the products by making them available at the time whenthey are needed e.g. tamarind, rice in offseason

Possession Utility: The marketing functions buying and selling helps in the transfer of ownership of goods from one person to another in the marketing system

Issues and performance indicators

Agricultural price policy is basically aimed at intervention in the agricultural produce markets with a view toinfluencing the level of fluctuations in prices and price-spread from farm-gate to the retail level . The instruments ofagricultural price policy comprised mainly the controls/restrictions of various forms, imports of food grains anddistribution of imported grains at below the market prices.

Agricultural Price Commission

APC was set up in 1965 , to advise the government on a regular basis, for evolving a balanced and integrated price

structure. While formulating the price policy, the Commission was required to keep in view not only the need to provide incentives to the farmers for adopting the new technology and maximizing production but also the likelyeffect of the price policy on cost of living, levels of wages and industrial cost structure . The thrust of the policy hadbeen to achieve the twin objectives of assuring remunerative prices to the farmers and providing food grains to theconsumers at reasonable prices .

Important policy instruments currently in vogue include:

Assurance of minimum support prices for 24 crop products Selective market intervention scheme (MIS) for other crops


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Note: The Market Intervention Scheme (MIS) is an ad-hoc scheme under which are included horticultural commoditiesand other agricultural commodities which are perishable in nature and which are not covered under the minimumprice support scheme. In order to protect the growers of these horticultural/agricultural commodities from makingdistress sale in the event of bumper crop during the peak arrival period when prices fall to very low level, Governmentimplements M.I.S. for a particular commodity on the request of a State Government concerned.

Imposition of levy on rice millers and sugar factories for procurement of a specified quantity of rice and sugar Implementation of statutory minimum support prices in case of sugarcane as the buyer for this is only sugar

factories Maintenance of buffer stocks of wheat and rice Distribution of food grains and sugar under PDS in limited quantities at subsidized prices Open market purchases of some commodities by public agencies at market prices during the peak arrival

period and also their open market sales at fixed prices Encouragement to producer s cooperatives to undertake marketing on behalf of the farmers Regulation of the activities of traders and processors Creation of marketing infrastructures for facilitating marketing of agricultural commodities

Impact of Agricultural Price Policies

The policy has been instrumental in creating a fairly stable price environment for farmers to induce them to adopt new production technology and thereby increase the output of food grains

Geographically dispersed growth of cereal production during the last two decades coupled with public distributionsystem of cereals helped in increasing the physical access to food

Supply of subsidized inputs to farmers and subsidized distribution of food grains, which enabled to keep the real pricesof cereals declining vis-a-vis the per capita income, helped in improving the economic access to staple food grains

Apart from the increase in physical and economic access to food and an assurance of a reasonable return to growers ofstaple food , the incentive framework created by the price policy helped in diversification of cropping and production

pattern in agriculture.

Owing to the decline in the real prices of basic staple food, the industry and the organized sector could keep their wagebills low, as rice and wheat have a considerable weight age in the consumer price index.

The kind of policy and programmes followed in the country resulted in some distortions in the normal functioning ofthe open market. For example, in the case of cereals, while the spread between wholesale and retail prices was notfound to be excessive, the inter year price rise has been considerable lower and, in several situations, was even lowerthan the storage cost, which did not encourage the participation of private trade in storage and related trading

activities in food grains.

Market intervention, through price policies, has been cautious and selective and market imperfections observed aredue to infrastructure bottlenecks, stringently market regulations, lack of market information flow s and such otherfactors and not necessarily due to pricing policies pursued in the country. By and large, the policies benefited farmersas well as the consumers but by their very nature and objectives affected the participation of private sector in themarketing of commodities covered by these policies. The situation in recent years has considerably changed. In severalcommodities, the volume of commodities entering the markets has considerably gone up. The participation of privatesector is becoming more important. It is in this context that there is a need for a relook at the policies and reformulatethem to attract private sector participation in agricultural marketing at a large scale . In the emerging circumstances,


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a road map has to be laid for an agricultural pricing policy with twin emphasis on economic viability and generation ofenough incentives to the farmers for making further investment in agriculture and more particularly in itsdiversification.

Options for Farmers

1. There will be need for adoption of varieties suitable for different times of sowing, different durations ofmaturity and those amenable to processing

2. Farmers would need to learn the methods of preparing the produce for market , viz., cleaning, grading andpackaging at the farm level which will not only fetch better prices for their products but also reduce physicallosses during postharvest handling

3. They will also need to keep track of the prices of different grades/varieties in nearby and other markets andsell the produce where the net prices realized by them are the highest

4. They will have to keep track of the facilities like pledge-loan available to them and judiciously use such facilities5. In the coming years, farmers would need to reduce their price risks by entering into advance agreements with

processors or bulk buyers6. Farmers would need to increasingly organize themselves into groups or cooperatives for the purposes of

marketing of their products, value addition and processing

Direct Marketing

Direct marketing encourages farmers to undertake grading of farm produce at the farm-gate and obviates thenecessity to haul produce to regulated markets for sale. Direct marketing enables farmers and processors and otherbulk buyers to economize on transportation costs and to considerably improve price realization .

In South Korea , for instance, as a consequence of expansion of direct marketing of agricultural products, consumer prices declined by 20 to 30 per cent and producer-received prices rose by 10 to 20 per cent. This also providedincentive to large-scale marketing companies to increase their purchases directly from producing areas .

Direct marketing by farmers to the consumers has been experimented in the country through Apni Mandis in Punjaband Haryana . The concept, with certain improvements has been popularized in Andhra Pradesh through Rythu Bazars and in Tamil Nadu as Uzhavar Santhaigal. At present, these markets are being run at the expense of the Stateexchequer, as a promotional measure, to encourage marketing by small and marginal producers of fruit and vegetableswithout the help of the middlemen. Considering the vastness of the country, more and more such markets need tocome up in the organized sector so that they can be developed in tune with the backward & forward linkages.

Contract Farming

In the wake of economic liberalization, the concept of contract farming in which national or multinational companiesenter into contracts for marketing of the horticultural produce and also provide technologies and capital to contract

farmers has gained importance . According to this, bi-party agreements are made between the farmer and thecompany and the latter contributes directly to the management of the farm through input supply as well as technicalguidance and also markets the produce.

The main features of this type of contract farming are that selected crops are grown by farmers under a buy backagreement with an agency engaged in trading or processing. In such cases, the centralized processing and marketingagencies supply technology and resources , including planting materials and occasional crop supervision. Under suchcontracts, the farmer assumes the production related risks, while the price risk is transferred to the company.

Agriculture Price Policy


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Agricultural prices derive their meaning and significance from the stage of marketing to which they relate . It is becauseof the wide range of marketing methods which may operate in individual countries, and the consequent wide variety of

price quotations available , that it has been found most appropriate to use the principle of farm-gate prices (actual ornational) for the purposes of agricultural price statistics. Thus, the costs of transporting agricultural produce from thefarm to the market or to the first point of sale off-farm, and of selling it there (whether these activities are performedby the farmer himself or by specialized agents) are not, by definition, to be included in the farm-gate price.

Wholesale price accordingly is the rate at which a relatively large transaction, generally for further sale, is affected.

Wholesale prices of selected crops are collected daily as well as on Fridays on a regular basis from the selectedmarkets/centers spread all over the country by the Directorate of Economics and Statistics, Ministry of Agriculture,Government of India as well as by the respective state government under the Market Intelligence Scheme.

Retail prices are established in transactions in which quantities dealt with are relatively smaller than in wholesaletransactions and in which the final consumers of the agricultural product participate as buyers. Retail prices are used inconstructing consumer price indices, in undertaking studies into cost of living and levels of living, and in determiningcost of living allowances for wage earners.

The Labour Bureau, Ministry of Labour , Government of India has been entrusted with the task of collecting retail prices at the national level. The retail prices of few commodities are collected through the National Sample SurveyOrganization (NSSO) from a set of 422 villages for building up the consumer price index numbers.

The Directorate of Economics and Statistics also collects daily retail prices of vegetables, fresh fruits, fish, livestockproducts and food grains from 90 centres and weekly retail prices of agricultural commodities from 215 centres.

Export prices are determined in export markets for products intended for delivery outside the customs boundary of thecountry.

The concept of prices paid by a farmer is the counterpart of prices received by a farmer and covers all prices paid byhim as he participates in the transaction of goods and services in his capacity as a buyer of the means of agriculturalproduction.

Food Corporation of India

An efficient management of the food economy with a view to ensuring an equitable distribution of food grains atreasonable prices to the vulnerable sections of society is essential in the present socio economic environment of thecountry. Food Corporation of India (FCI) was born on January 01, 1965. It has initially served only four States in thesouthern part of the country. Later on it extended its services throughout the country. The main functions of FCI are:

a. To procure a sizeable portion of the marketable surplus of food grains and other agricultural commodities at

incentive prices from the farmers on behalf of the Central and State Governmentsb. To make timely releases of the stocks through the public distribution system (fair price shops and controlleditem shops) so that consumer prices may not rise unusually and unnecessarily.

c. To minimize seasonal price fluctuations and inter-regional price variations in agricultural commodities byestablishing a purchasing and distribution network

d. To build up a sizeable buffer stock of food grains to meet the situations that may arise as a result of shortage ininternal procurement and imports

Marketable Surplus


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The marketable surplus is that quantity of the produce , which can be made available to the non-farm population ofthe country. The marketable surplus is the residual left with the farmers after meeting his family consumption, farmrequirements, social and religious payments.

On a particular farm, the quantity of marketable surplus depends on the following factors.

1) Size of holding

2) Production of Commodity

3) Price of the Commodity

4) Size of family and

5) Requirements of seeds and feed

Marketed surplus is that quantity of the produce, which the farmer actually sells in the market, irrespective of hisrequirements for family consumption, farm requirements, social and religious payments. The marketed surplus may bemore, less or equal to the marketable surplus.

The marketed surplus may be even higher than the marketable surplus . This is what is called distress sale, which isparticularly true in food grains and other food items on marginal and some small farms.

Role of Government

1. Framing of rules and regulations for the protection of the interest of some sections of the population. This mayinclude restriction on activities of traders, licensing and market regulation

2. Promotional activities such as storage and warehousing, transportation and communication facilities, credit facility, grading and standardization, and encouragement of co-operative marketing

3. Administration of prices at different levels of marketing guaranteeing minimum support prices to producers,providing commodities at fair prices to consumers, and fixing the rates of commission charged by commission agents

4. Influencing supply and demand by import, expor t, internal procurement and distribution

Marketing Channels and Functionaries

The marketing channels for agricultural commodities in general can be divided into following four broad groups:

1. Direct to consumers

2. Through wholesalers and retailers

3. Through public agencies or cooperatives , and

4. Through processors

Main features of marketing channels

1. The proportion of marketed surplus going directly from the farmers to consumers continues to be small(around one or two per cent) and has decreased over the years due to the increase in marketed surplus,shifting of processing from consumer to the processors and increase in the demand for packed and branded


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products. The government is encouraging direct marketing by the farmers through such schemes as apnimandi, rythu bazaar and uzhavar santhals.

2. The private trade, despite government intervention, has continued to dominate the trade in agriculturalcommodities.

3. The main functionaries in the marketing channel for agricultural commodities include village traders, primaryand secondary wholesalers, commission agents, processors and retailers including vendors. Public agencies,farmers cooperatives and consumers organizations also perform many of these marketing functions.

4. Marketing channels for various cereals in India are more or less similar

Majority of the States has enacted the Agricultural Produce Market Acts . Infrastructure in the regulated markets hasbeen created as per the need in terms of volume of market arrivals.

The establishment of regulated markets helped in creating orderly and transparent marketing conditions in primaryassembling markets. Increase in the number of regulated market yards , from a meagre 286 at the time ofIndependence to 7,161 in 2001, helped in increasing the access of farmers to such orderly market places. Thisdevelopment, coupled with construction of approach roads and roads network linking primary markets withsecondary wholesale and terminal markets , also improved the process of price discovery at the primary market levelwhere most of the small farmers dispose off their produce. Increase in physical access of farmers to market places,apart from reducing transaction costs of farmers, helped small farmers more who have low marketed surplus and couldnot transport their surpluses to long distances.

State Agricultural Marketing Boards

Main functions of SAMBs are

1. To carry out the training of officers and staff, create facilities for grading and standardization, constructmarket road etc.

2. To tender advice to the government on the functioning of market committee and on improvement inagricultural marketing as and when referred

3. To frame bye-laws, help in the functioning of market committees and supervise their operations

Council of State Agricultural Marketing Boards

The COSAMB, an apex body of the State Marketing Boards was established in February 1988. The need for such a bodywas felt to co-ordinate the activities of State Marketing Boards , especially those connected with credit mobilization,central assistance for market development and some common problems.

Cooperative Societies

Establishment of co-operative marketing societies is another step taken to overcome the problems arising out of the

present system of marketing agricultural produce. A cooperative sales association is a voluntary business organizationestablished by its member patrons to market farm products collectively for their direct benefit. It is governed bydemocratic principles, and savings are apportioned among members on the basis of their patronage.

Functions of Cooperative Marketing Societies

1. To market the product of the members of the society at fair prices2. To safeguard the members from excessive marketing costs and malpractices3. To make credit facilities available to the members against the security of the produce brought for sale4. To make arrangements for the scientific storage of the member's produce


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5. To provide the facilities of grading and market information which may help them to get a good price for theirproduce

6. To introduce the system of pooling so as to acquire a better bargaining power than the individual membershaving a small quantity of produce for marketing purposes

7. To arrange for the export of the produce of the members so that they may get better returns8. To act as an agent of the government for the procurement of food grains and for the implementation of the

price support policies

9. To make arrangement for the transport of the produce of the members from the villages to the market oncollective basis and bring out a reduction in the cost of transportation

10. To arrange for the supply of inputs requir ed by the farmers such as improved seeds, fertilizers, insecticides andpesticides

Suggestions for strengthening of Cooperative Marketing Societies

1. The area of operation of societies should be large enough so that they may have sufficient business andbecome viable

2. Storage facilities, transport facilities , accommodation and drinking facilities should be strengthened in thesocieties

3. Cooperative feeling among members should be inculcated by proper education and adequate representation should be given to small and marginal farmers in their organizational set up

4. In selection of officials of cooperative marketing societies weight age should be given to business experienceand qualification

Physical Supply and Distribution

It includes determining warehouse locations (establishing a material handling system, maintaining an inventory controlsystem, establishing procedures for Marketing and Markets processing orders) and selecting mode of transportation.Transportation and storage account for the major share in the total distribution cost. Transportation is a necessary

function of marketing because most of the markets are geographically separated from the areas of production. Itenhances the economic value through creation of place utility. The important functions of transport are:

It helps in the growth of industries whose products require quick marketing. e.g. vegetables, flowers, milk andfish

It increases the demand for goods through widening of market It creates place utility . As such transportation bridges the gap between production and consumption centers By virtue of improvement in the speed of transport it offers time utility to products It helps in stabilization of prices by moving commodities from surplus area to deficit area Ensures even flow of goods into the hands of consumers

It enables consumers to enjoy the benefits of many goods not produced locally Transport intensifies competition , which, in turn, reduces prices

National Institute of Agricultural Marketing

The National Institute of Agricultural Marketing (NIAM) is a pioneering national level organization set up by theGovernment of India in year 1988 for offering specialized training, education and consultancy and for undertakingresearch in agricultural marketing . It is an autonomous body under the aegis of Ministry of Agriculture (previously ofMinistry of Rural Areas and Employment), Government of India. The Institute is being developed as a Centre ofExcellence in the field of Agricultural Marketing (NIAM, 2000). The following functions have been assigned to theInstitute:


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1. To provide specialized training in agricultural marketing for entrepreneurs and institutions by offering andsponsoring specialized marketing courses at various levels as necessary to supplement existing facilities

2. To undertake research in agricultural marketing for government , cooperatives and other institutions fordemonstrating and replication of the advanced management techniques in this field

3. To provide advisory and consultancy services to marketing enterprises (state, private and cooperatives) in thefield of agricultural marketing

4. To develop and formulate investment projects in the field of agricultural marketing for public, cooperative and

private institutions

IT in agricultural Marketing

Market information is needed by farmers in planning production and marketing, and is equally required by othermarket participants in arriving at optimal trading decisions . The existence and dissemination of complete and accuratemarketing information is the key to achieving both operational and pricing efficiency in the marketing system and IThas an important role to play in the process. National Informatics Centre (NIC) is the nodal Scientific & Technologyorganization in the Ministry of Communications & Information Technology, for informatics development andnetworking in government, corporate and cooperative sectors for decision support. NIC provides the state-of-the-art ITsolutions to information management, information dissemination, and decision support requirements of the Central aswell as state Governments, the Corporate Sector and the Cooperative Sector.

Codex Alimentarius Commission

To develop food standards, guidelines and related texts such as codes of practice under the Joint Food and AgricultureOrganization (FAO) and World Health Organization (WHO) Food Standards Programme, the Codex AlimentariusCommission was created in 1963 by FAO/WHO . The main purposes of this Programme are protecting health of theconsumers and ensuring fair trade practices in the food trade , and promoting coordination of all food standards workundertaken by international governmental and non-governmental organizations. The Codex Alimentarius Commissionenvisages a world affording the highest attainable levels of consumer protection, including food safety and quality. To

this end, the Commission will develop internationally agreed standards and related texts for use in domestic regulationand international trade in food that are based on scientific principles and fulfill the objectives of consumer healthprotection and fair practices in food trade.

APMC Act

APMC acts run on two principles:

Ensure that intermediaries (and money lenders) do not compel farmers to sell their produce at the farm gate@throwaway prices=farmer is not exploited

All food produce should first be brought to the market yard=> sell through auction=farmers get good money.

Under APMC Acts:

A State is geographically divided and Market (Mandis) are established at different places within the states. Farmers have to sell their produce through the auction @mandi. To operate in Mandi, a trader has to get license. Wholesale, retail traders (e.g. shopping mall owner) or food processing company etc. cannot buy farm output

directly from farmer. Theyve to get it through the Mandi.

Earlier APMC Acts had issues


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Middlemen @Mandi charge commission on both seller (farmer) + buyer (the urban retailer / food processor)leading to high consumer prices and low producer prices

during peak season, when they buy from farmer @low prices, they dont drastically reduce the prices to finalconsumer.

Middlemen have no facilities to do grading/sorting, all they do is pass the produce from farmer to finalconsumer. Thus, post-harvest losses continue to be in the range of 18 to 40 per cent for several commodities

Licensing issues

Model APMC Act, 2003

Farmer doesnt need to bring his produce to APMC Mandi. He can directly sell it to whomever he wants.(Although, if he doesnt bring his produce to Mandi, then he cant run for election in that APMC marketingcommittee.)

Farmers Processors, exporters, graders, packers, etc. can buy agricultural produce directly from farmers. Permits Private market yards, Direct Purchase Centers, farmers market for do ing trade in agriculture produce

(monopoly of Mandis=destroyed) Public Private Partnership in the management and development of agricultural markets in the country for

post-harvest handling, cold storage, pre-cooling facilities, pack houses etc. Regulate and promote contract-farming arrangements in the country. Establish State Agricultural Produce Marketing Standards Bureau

Model APMC act is not uniformly adopted , states have made their own modifications.

Recommendations

Remove horticulture : Horticulture should be specifically excluded from definitions of APMC because theseMandis are main culprits for inflation and wastage of fruits and veggies.

E-Auction : All APMCs Mandis should introduce electronic auction platform

Open Membership : Open membership of AP MCs by encouraging wholesalers and retailers to enter intotransactions with the growers.

No License : Anyone should be allowed to trade in APMC market. Licensing system should be abolished. TheAPMC Market Committee should only fix the transaction fee and keep a Bank Guarantee from traders to ensurethat the farmers payment is not affected.

No Cess/Tax : all the taxes/cess levied in APMC Mandis should be abolished.

e-technology in the aid farmers

In the context of agriculture, the potential of information technology (IT) can be assessed broadly under two heads :

1. as a tool for direct contribution to agricultural productivity

Precision farming , popular in developed countries, extensively uses IT to make direct contribution to agriculturalproductivity. The techniques of remote sensing using satellite technologies , geographical information systems,agronomy and soil sciences are used to increase the agricultural output. This approach is capital intensive and usefulwhere large tracts of land are involved . Consequently it is more suitable for farming taken up on corporate lines.

2. as an indirect tool for empowering farmers to take informed and quality decisions which will have positiveimpact on the way agriculture and allied activities are conducted


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The indirect benefits of IT in empowering Indian farmer are significant and remain to be exploited. The Indian farmerurgently requires timely and reliable sources of information inputs for taking decisions. At present, the farmerdepends on trickling down of decision inputs from conventional sources which are slow and unreliable. The changingenvironment faced by Indian farmers makes information not merely useful, but necessary to remain competitive.

While relevant information of the required quality always had the potential of improving efficiency in all spheres ofactivity of Indian farmer, the emerging scenario of a deregulated agriculture, thanks to WTO, has brought in a needand urgency to make it an integral part of decision making. Consequently, deploying IT as a strategic tool for the benefitof rural India has assumed importance. Since information needs of the Indian farmers in general are documentedextensively, it is more pertinent to focus on the theme in the context of challenges raised by WTO.

Awareness Databases

The mandatory changes in government policies on tariffs, imports, year wise phasing of the same , and impact onvarious subsidy schemes would be of concern to people. The macro economic situation related to foreign exchange,inflation, the current tariff structure within and outside the country etc. and their likely impact on Indian agriculture will have a direct bearing on the decisions of segments of Indian agriculture.

Decision Support Systems for farmers

The data on cost of cultivation, efficient agricultural practices and availability of inputs will facilitate in assessing thestrengths of indigenous products vis a vis the imports. Opportunities for specialization may lead to better exportpotential. Similarly, forecasts on threats in terms of information related to cheaper imports, macro-economicconditions of other countries are also required.

Systems that facilitate Indian farmers to forge appropriate alliances for collective benefit

In order to remain competitive and derive better price realizations, it will be imperative for the farmers to cometogether through cooperative alliances . It is possible to relieve the farmers of geographical barriers by facilitatingfarmers to come together online and facilitate disposal of their produce at attractive prices. Online bidding can beintroduced for various agricultural product categories. This will require development of complicated IT systems whichare to be supported by proper brick and mortar infrastructure and post harvest technologies, storage, etc.

Opportunities in the new order

It is necessary to equip Indian farmers to come together for value additions to their agricultural output. This will getthem better returns from their produce and at the same time generate new employment opportunities in the ruralsector . This will require systems to provide information to farmers on agro processing industries, aqua culture units,animal husbandry, floriculture, etc . The opportunities for setting up such units, procedures related to exports, thequality norms to be adopted, packaging, etc. are to be made available.

Monitoring

Advance warning systems to alert the farmers are required to be developed. It is necessary to promote monitoringcells in all major institutions related to agriculture and allied activities to maintain data, provide periodic analyticalreports and raise advance alerts.

Constraints


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1. Haphazard development: It is observed that some initiatives have already been made to provide IT basedservices to rural community. However, duplication of efforts are witnessed as most of the services revolvearound limited subjects

2. User friendliness: The success of this strategy depends on the ease with which rural population can use thecontent. This will require intuitive graphics based presentation . Touch screen kiosks are required to be set upto encourage greater participation

3. Local languages: Regional language fonts and mechanisms for synchronization of the content provides a

challenge that needs to be met with careful planning4. Restrictions: Information content based on remote sensing and geographical information systems can

provide timely alerts to the farmers and also improve the efficiency of administration. However, governmentsmap restriction policies often threaten to stifle the optimal utilization of these tools

5. Power Supply: In most of the rural India, power supply is not available for long hours. This will reduce theusefulness of the intended services.

6. Connectivity: Despite the phenomenal progress made in the recent years, the connectivity to rural areas stillrequires to be improved. Reliable connectivity is a prerequisite for a successful penetration of IT into rural areas

7. Bandwidth: Even in areas where telephone and other communication services exist, the available bandwidthis a major constraint. Since internet based rural services require substantial use of graphics, low bandwidth is

one of the major limitations in providing effective e-services to farmers8. Dissemination Points: Mass deployment of information kiosks is critical for effective use of the Internet based

content and services. This requires a major focus on a viable revenue model for such kiosks. In the newinformation era, the kiosks should be designed to become electronic super markets that can, in addition tobeing information sources, handle other services of use to the people living in rural areas.

Documents

CP Cropping Pattern Self Notes