1. Agriculture in Madhya Pradesh Challenges, strategy and goals 2009-12 Presentation at Ministry of Agriculture 19 May 2009 1

2. ??? Can this productivity gap ever be bridged? ItemW. Europe 1900 2000 India 1900 2000 Avg. area tilled by one farmer 10 ha.100 ha.1 ha. Avg. output of grain per annum per worker 100 qtl. @ 10 qtl./ha. 5000 qtl. @ 50qtl/ha 10qtl. Average value of grain produced/worker $ 1000 @ $ 10/qtl. $ 100,000 @ $ 20/Qtl $ 100$ 200 Productivity ratio1050011 Source: Marcel Mazoyer and Laurence Roudart: A History of World. Agriculture from the Neolithic Age to the Current Crisis. London: Earthscan, 2007

3. Structure of presentation 1.SWOT of MP agriculture 2.Overview of recent achievements 3.Strategic goals – 2009-12 4.Strategic Action Plan and budgetary requirements 5.Policy suggestions for GOI

4. A brief SWOT analysis Strengths 1.11 agro-climatic zones; 1100 mm rainfall 2.Excellent land-man ratio; good soil types 3.1/3 area under forests; rich bio diversity 4.Good support infrastructure: 4500 PACS, 240 mandis, 2 SAU, 11 Ag Colleges 5.Strong extension network

5. SWOT (contd) Weakness 1.¾ holdings small and marginal (26% area) 2.2/3 area rainfed; monsoon vagaries 3.22% rural population tribal; low literacy 4.High risk factor: lack of diversification 5.Low use of HYV seed, fertilizer, mechaniz. 6.Rural credit system weak 7.Infrastructure (esp. power) and transport bottlenecks

6. SWOT (contd) Opportunities 1.Strong political will to support agriculture 2.Increased budgetary support under CSS 3.Improving power and irrigation scenario

7. SWOT (concluded) Threats 1.Uneven fund disbursal 2.Inefficient HR management 3.Untargeted interventions 4.Change of focus at State level

8. Overview of recent performance 2006-07 to 2008-09

9. ParticularsUnitStatus Geographical areaLakh Ha.307.56 Net cultivated areaLakh Ha.148.38 Area under KharifLakh Ha.107.12 Area under RabiLakh Ha.79.64 Double Cropped AreaLakh Ha.53.78 Irrigated Area%32.37 Cropping Intensity at present%136 Agriculture Profile of the State 9

10. MP in national perspective (2006-07) S.N.ParticularsAll IndiaM.P.Position 1.Irrigation %40.332.37 2.Cropping intensity %135136 3.Fertilizer consumption/ in kg/ha. 104.5062.70 4.Productivity of crops kg/ha. a.Paddy2084868 b.Jowar8961042 c.Bajra8731360 d.Maize1783979 e.Wheat26171915 f.Gram782981Ist (46.62%) in Prod. g.Soybean10511007Ist (54.51%)%in prod. Total pulses595780Ist (26.12%)%in Prod. Total Oilseeds8959552nd (19.71%) in prod.

11. 11 AREA, PRODUCTION, YIELD & CAGR OF MAJOR KHARIF CROPS IN MP (AREA(A):000'Ha., PROD(P).:000'TONNES, YIELD(Y):Kg./Ha.) CROPS 2006-072007-082008-09CAGR % APYAPYAPYAPY PADDY 168413968741645133281016821560927-1.223.58-0.63 JOWAR 545562103352859011234715771225-8.353.8313.65 MAIZE 890854962 8531119131284011441307-4.8932.4936.12 BAJRA 1852541375202278137617524113771.892.170.11 KODOKUTKI 2977625431586273307893004.7115.1312.80 TUR 30921369132521967336329080011.3319.486.58 URAD 47016134257019534247618338411.2817.396.14 MOONG 7324318762532976273554.118.337.55 GROUNDNUT 20119294920419193620022811400.509.119.38 SOYBEAN 4705478910195202536810325124585011429.7317.126.67 SESAMUM 247883562318837821398460-10.125.6817.61 NIGER 1082422210224235117272311.396.254.95 TOTAL 10416907987210907996491410712107721006 3.7814.2010.09

12. 12 AREA, PRODUCTION, YIELD & CAGR OF MAJOR RABI CROPS IN MP (AREA(A):000'Ha., PROD(P).:000'TONNES, YIELD(Y):Kg./Ha.) CROPS 2006-072007-082008-09CAGR % APYAPYAPYAPY WHEAT427578481916374260321748360760001665-14.05-23.34-10.93 GRAM259125579882439173569927142307850-0.56-20.96-21.61 PEAS1908444216667404216994600.53-1.19-2.26 LENTIL540262485468206440520239460-8.52-15.08-7.22 RAPE/ MUSTARD 753706939579537927596542910-21.98-23.58-2.18 LINSEED126503971053331311447410-13.10-20.00-8.94 TOTAL8672119071373768290171174796498941242 -9.79-20.59-12.02 NOTE: 39 District, 164 Tehsil in 2007-08 & 41 District, 152Tehsil in 2008-09 where drought affected in sgtate, adversely affected area & productivity of crop.

13. 13 PERFORMANCE OF SEED PRODUCTION AND SRR (Unit-Seed Prodn-lakh Qtls, SRR-%) Crops2006-072007-082008-09 CAGR % Seed Prodn SRRSeed Prodn SRRSeed Prodn SRRSeed Prodn SRR Kharif crops Soybean12.7315.8416.0414.7723.2419.37 54.287.77 Paddy0.343.960.218.850.2411.05 -33.82151.26 Rabi crops Wheat8.598.0310.9319.1912.0013.62 33.47104.30 Gram0.512.151.022.901.304.41 127.4570.00

14. Seed Treatment (Unit : % of total seed used) YearKharifRabi 2006-0714.1814.81 2007-0840.0056.5 2008-0957.7868.56 14

15. Fertilizer Consumption in the State Nutrients 2006-072007-082008-09 N7.3017.9577.998 P4.0984.3035.297 K0.6530.7580.899 Total12.05113.01714.195 ( Unit – lakh MT ) 15

16. Per ha. consumption of fertilizers NutrientsAchievement 2006-072007-082008-09 N37.5843.5642.52 P21.3223.5528.15 K3.394.154.78 Total62.7071.2675.40 ( Unit – KG/Ha) 16

17. Performance of mechanization YearManually Operated / Bullock Drawn implements Power Drawn implements Tractor & Power Tiller 2006-07645801351440 2007-08525261756444 2008-09551801816480 Total 17228649231364 17

18. NRM – Watershed Development ParticularsUnit 2006-072007-082008-09 PFPFPF NWDPRAHa539371648.88390942286.97238292907.66 RVP / FPRHa223491536.03258531613.18196281586.46 MIT Nos----561250.00 PERCOLATION TANKs Nos93259.213011682.507934107.23 18 Unit-Fin-lakh

19. Some policy initiatives at a glance 1.Lowering risks and cost of agriculture Coop credit interest brought down from 16% to 7% (2006-07), 5% (2007-08) and 3% (proposed for 2009-10); state subsidy 100cr 2/3 farmers covered under Kisan Credit Card Rs. 100/qtl wheat bonus in 2007-08 and Rs. 50/qtl wheat bonus paid in 2008-09 State level debt waiver scheme for loans upto Rs. 50k announced (to be implemented) 300+ farmer seed societies; doubling of F1 seed availability between 2006-2008.

20. Policy initiatives (contd) 2.Strengthening extension 1st State to introduce PPP model (ATMA) 1 st State Level call centre 1 st Hindi website for agriculture; KGK; CSC Community radio station Over 1500 farm schools mobilized Each of 52,000 villages site for demo plot Dist./block level Krishi Vigyan Mela Monthly newsletter; radio and TV content

21. Policy initiatives (contd) 3. Moisture conservation efforts SRI and ridge-and-furrow thrust techniques Balram Tal scheme for on-farm ponds Tubewell scheme for cultivators Top-up subsidy for drip and sprinkler systems

22. Policy initiatives (contd) 4. Rural finance institutions 1 st among north Indian states to sign Vaidyanathan Mou in 2006; over Rs. 1200 crores received as assistance Comprehensive amendments to Coop Act passed Wide ranging reform of PACS underway; focus on SMF memership; savings, portfolio financing

23. Policy initiatives (contd) 5.Marketing Modernization programme covering 240 market yards (computeriz., electronic scales, farmer facilities) Single license system for bulk buyers to facilitate direct farmer-processor linkage National Spot Exchange begins functioning at Indore (April 2009) 3 storage and marketing hubs for cereals and perishables planned in 2009-10 WHR, storage and collateral services being expanded

24. Strategic goals 2009-10 to 2011-12 24

25. Strategic goals 2009-12 1.Achieve 5% p.a. growth in agriculture 2.Attain national productivity goals in major crops 3.Promote groundwater recharge and in-situ moisture conservation efforts 4.Promote a sustainable, diversified agriculture model, based on optimum resource use 5.Promote intensive mechanization to improve productivity and reduce production losses and drudgery 6.Create effective and transparent marketing mechanisms to enable unlocking of farm produce value 7.Support research and HRD focused on State’s needs

26. Strategic Action Plan 1.Achieving 5% per annum growth Double SRR of all major crops in 3 years Increase seed production throughout breeder- foundation-certified chain Promote diversification through additional areas under horticulture and agro forestry Promote targeted mechanization to improve yields Strengthen animal husbandry interventions across value chain Liberalise marketing arrangements further; PPP in infrastructure; WHR; strategic marketing hubs, etc. Target SMF with institutional credit and financial services, including risk mitigation strategies

27. SAP (contd) 2. Attain national productivity goals in major crops Soybean  Research will be focused on early maturing disease free varieties.  Ridge-and-furrow and similar useful practices  Weed control to be focus of farm level efforts  Farm schools to anchor demo and technology transfer efforts Paddy  Increase seed availability, esp. hybrids and early maturing varieties  Upland paddy to be phased out with oilseeds and pulses  SRI method to cover entire paddy acreage in 3-5 years

28. Wheat  Varietal replacement  Addressing micro nutrient deficiencies  Timely sowing and irrigation management  Niche production and value chain enhancement for ‘sharbati’ and durum varieties Gram  Increasing SRR  Targeting productivity increase for SMF  Irrigation and pest management Efforts underpinned by revitalised extension system, which is being made totally farmer anchored.

29. Kharif Crop Development Crops Year wise projected Area & Productivity ( Yield) 2009-102010-112011-12 AreaYieldAreaYieldAreaYield Soybean 50.75116051.25120051.751240 Paddy 16.2597516.50102516.751075 Maize 8.9015009.2016009.501800 Pulses 11.1556811.5058012.00600 Total 106.701040108.001080109.001100 29 Area: lakh ha., Yield: Kg/Ha

30. Rabi Crop Development Crops Year wise projected Area & Productivity ( Yield) 2009-102010-112011-12 AreaYieldAreaYieldAreaYield Wheat 42.00205042.50215043.002200 Gram 30.00105030.30108030.601110 Total Pulses38.0081038.5082539.00850 Mustard7.0010757.2511007.501125 Total90.00150092.00155093.001600 30 Area: lakh ha., Yield: Kg/Ha

31. 3. Promote groundwater recharge and in-situ moisture conservation efforts  Expansion of Balram Tal scheme  Expansion of tubewell scheme for SMF  Convergence with NREGA for on-farm ponds, SMF esp.  Greater thrust on NWDPRA  Targeting SMF for use of water saving devices  Implementation of master plan for serial check dams on major streams in collaboration with RDD

32. 4. Promote a sustainable, diversified agriculture model, based on optimum resource use  Increased focus on conservation agriculture practices  Use of NHM & RKVY funds for allied sector interventions  Involvement of NGOs for promoting integrated farm production models (e.g. ‘Wadi’)  Greater emphasis on organic farming, use of farm waste, mulching etc.

33. 5. Promote intensive mechanization to improve productivity and reduce production losses and drudgery  Equipment Banks for hiring machinery to SMF  Leasing model on pilot basis  Involvement of local private manufacturers in promoting mechanization efforts

34. 6. Create effective and transparent marketing mechanisms to enable unlocking of farm produce value  Purchase centres outside market yards for direct farmer-buyer interface  Provision for Kisan Mandis around major towns  Major projects for perishables and regional storage hubs under implementation  Modernization of mandis – use of IT; PPP model for infrastructure development; WHR & collateral services  National Spot Exchange to be expanded in mandis

35. 7. Support research and HRD focused on State’s needs  SAUs to focus primarily on State specific crops  Greater farmer involvement in varietal research and development  Private sector to be encouraged to enter agri education  Veterinary and horticulture universities under planning  Establishment of gene banks and seed banks at SAUs to preserve unique bio heritage of State and check bio piracy

36. ATMA ActivitiesProjected Targets 2009-102010-112011-12 Establishment of FFS200030005000 Demonstration350003700039000 Establishment of CRS101525 Interface100 Kisan Mela/Exhibition50 P P Partners182530 36

37. Agriculture Mechanization (Unit-Nos) Types of MechanizationProjected Targets 2009-102010-112011-12 Manually Operated / Bullock Drawn implements 609006800075000 Power Drawn implements193222002400 Tractor & Power Tiller6008001000 Total 634327100078400 37

38. Seed Infrastructure & Availability ParticularsProjected Targets 2009-102010-112011-12 Seed Availability ( Qtls ) Kharif Soybean 90000011000001350000 Paddy 102797150000170000 Rabi Wheat 628000680000835000 Gram 110000120000150000 SRR (%) Soybean 24.0028.0032.00 Paddy 12.8518.0020.00 Wheat 16.0020.0024.00 Gram 5.507.009.00 38

39. Per Unit Consumption of Fertilizer NutrientsProjected Targets 2009-102010-112011-12 N455055 P303234 K0505.506 Total8087.595 ( Unit – KG/Ha) 39

40. Seed Treatment (Unit : in % of total seed.) YearProjection KharitRabi 2009-1075.0080.00 2010-1180.0085.00 2011-201285.0090.00 40

41. NRM – Watershed Development ParticularsUnitProjected Targets 2009-102010-112011-12 NWDPRAHa411805000060000 RVP / FPRHa280003700041000 CONSTRUCTION OF MIT Nos7590110 CONSTRUCTION OF PERCOLATION TANKs Nos80010001100 41

42. Agriculture infrastructure ParticularsProjected Targets 2009-102010-112011-12 Plant protection lab111 Seed testing lab244 Fertilizer testing lab111 Strengthening of Soil testing labs142530 Renovation of Trg Institution (State level)111 Renovation of Trg Centers (Dist level)775 Renovation of Block level Krishi Gyan Kendra 100 113 Renovation of State Seed Farms1510 42

43. 43 Expenditure & Proposed Allocations under CSS (Unit-Lakh Rs.) Name of Scheme ExpenditureProposed allocation 2006-072007-082008-092009-102010-112011-12 Macro Management 4699.805772.067580.0810584.4312510.0015370.00 ISOPOM 4557.304169.365503.405600.0014725.0016000.00 COTTON MISSION-II 483.96411.19475.921133.101165.851267.56 NFSM -897.455762.3312965.3114103.0016100.00 RKVY -6756.9611661.1737527.2240000.0050000.00 ATMA 125.39513.151558.037270.216977.897000.00 DSIFPDQS* 351.34237.93264.043000.003200.004000.00 Total 10217.7918758.1032804.9778080.2792681.74109737.56 * DEV.& STRENGTHENING OF INFRASGTRUCTURE FACILITIESFOR PRODUCTION & DISTRIBUTION OF QUALITY SEEDS

44. Policy suggestions for Govt. of India

45. Some policy suggestions Merge all existing schemes under two umbrellas: NFSM and RKVY Replicate process of project appraisal and sanction for all programmes on RKVY model – i.e. SLSC, with GOI participation Allow flexibility (upto 20%) for State specific deviations from broad guidelines, with SLSC supervision Create joint supervision and monitoring mechanism for schemes for impact evaluation

46. THANKS