Agribusiness Policies in India

2. The National Policy on Agriculture seeks to
 Actualise the vast untapped growth potential of Indian
agriculture,
 Strengthen rural infrastructure to support faster agricultural
development,
 Promote value addition, accelerate the growth of agro
business, Create employment in rural 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.
NEW AGRICULTURE POLICY

3. The salient features of the new agricultural policy
are:
Over 4 per cent annual growth rate aimed over next two decades.
Greater private sector participation through contract farming.
Price protection for farmers.
National agricultural insurance scheme to be launched.
Dismantling of restrictions on movement of agricultural
commodities throughout the country.
Rational utilisation of country's water resources for optimum use of
irrigation potential.

4. High priority to development of animal husbandry, poultry, dairy
and aquaculture.
Exemption from payment of capital gains tax on compulsory
acquisition of agricultural land.
Minimise fluctuations in commodity prices.
Continuous monitoring of international prices.
Plant varieties to be protected through a legislation.
Adequate and timely supply of quality inputs to farmers.
High priority to rural electrification.
Setting up of agro-processing units and creation of off-farm
employment in rural areas.

5. Sustainable Agriculture
The policy will seek to promote technically sound, economically viable,
environmentally non-degrading, and socially acceptable use of country’s
natural resources – land, water and genetic endowment to promote
sustainable development of agriculture.
Measures will be taken to contain biotic pressures on land and to
control indiscriminate diversion of agricultural lands for non-
agricultural purposes.
The unutilized wastelands will be put to use for agriculture and
afforestation. Particular attention will be given for increasing cropping
intensity through multiple-cropping and inter-cropping.

6. Food and Nutritional Security
A major thrust will be given to development of rainfed and irrigated
horticulture, floriculture, roots 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.

7. Development of animal husbandry, poultry, dairying 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.

8. Generation and Transfer of Technology
Upgradation of agricultural education and its orientation towards uniformity
in education standards, women empowerment, user-orientation,
vocationalization and promotion of excellence will be the hallmark 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 Organizations (NGOs), Farmers
Organizations, Cooperatives, corporate sector and para-technicians in
agricultural extension will be encouraged for organizing demand-driven
production systems.
Development of human resources through capacity building and skill
upgradation of public extension functionaries and other extension functionaries
will be accorded a high priority.

9. Inputs Management
Adequate and timely supply of 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.

10. Protection 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 India’s obligations
under TRIPS Agreement.
The farmers will, however, be allowed their traditional rights to
save, use, exchange, share and sell their farm saved seeds except as
branded seeds of protected varieties for commercial purpose.

11. Incentives for Agriculture
The Government will endeavour to create a favourable economic
environment for increasing capital formation and farmer’s own
investments by removal of distortions in the incentive regime for
agriculture, improving the terms of trade with manufacturing sectors
and bringing about external and domestic market reforms backed by
rationalization of domestic tax structure.
It will seek to bestow on the agriculture sector in as many respects as
possible 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.

12. Risk Management
In order to reduce risk in and impart greater resilience to Indian
agriculture against droughts and floods, efforts will be made for
achieving greater flood-proofing of flood prone agriculture and drought-
proofing of rainfed agriculture for protecting farmers from vagaries of
nature. For this purpose, contingency agriculture planning, development
of drought and flood resistant crop varieties, watershed development
programmes, drought prone areas and desert development programmes
and rural infrastructure development programmes, will receive particular
attention.

13. Government Schemes for Agribusiness
•Special Economic Zones:-
A new scheme for setting up of Special Economic Zones (SEZs) in the
country to promote exports was announced by the Government in the
Export and Import Policy on 31st March, 2000. The policy provided for
setting up of SEZs in the public, private, joint sectors or by State
Governments.
•Export Oriented Units (EOU):-
It adopts the same production regime but offers a wide option in
locations with reference to factors like source of materials, ports of
export, hinter land facilities, and availability of technological skills,
existence of industrial base and the need for a large area of land for
the project

14. •Agri-Clinic and Agribusiness Centres:-
Small Farmers Agribusiness Consortium in co-operation with MANAGE has drawn plans
to provide training on management capacity building for those willing to set up Agriclinics
and Agribusiness Centres either as individual or a group five (four agricultural and allied
graduates and one management graduate) with a maximum loan assistance of Rs. 10
lakhs for individuals and Rs 50 lakhs for a group of five entrepreneurs
•Soil Health Cards:-
Under the scheme, the government plans to issue soil cards to farmers which
will carry crop-wise recommendations of nutrients and fertilisers required for
the individual farms to help farmers to improve productivity through judicious
use of inputs. All soil samples are to be tested in various soil testing labs across
the country

15. •Parmparagat Krishi vikas Yojana :-
Paramparagat Krishi Vikas Yojana” is an elaborated component of Soil Health
Management (SHM) of major project National Mission of Sustainable
Agriculture (NMSA). Under PKVY Organic farming is promoted through
adoption of organic village by cluster approach and PGS certification.
•Unified Agricultural Marketing :-
The plan involves creation of transparent, integrated e-trading mechanism
coupled with facilities for grading and standardisation to facilitate seamless
trading across mandis (APMCs). The approach was to integrate all such
APMCs with major consumption market to fetch remunerative prices to
farmers.

16. •Minimum Support Price Policy:-
Minimum Support Price is the price at which government purchases crops from
the farmers, whatever may be the price for the crops. Minimum Support Price is an
important part of India’s agricultural price policy.
•Procurement Price Policy:-
Sometimes, the government procures at a higher price than the MSP. Here, the price
will be referred as procurement price.
•Pradhan Mantri Grama Sadak Yojana:-
Pradhān Mantrī Grām Saḍak Yōjanā is a nationwide plan in India to provide good all-
weather road connectivity to unconnected villages.
It helps in smooth Transportation of Agricultural inputs and outputs.

17. E- Pashudhan Haat
Major activities for creating electronic platform for trading of bovine germplasm
are i) creation of “E- Pashudhan Haat”: an e- market portal for bovine
germplasm; ii) connecting breeders state agencies and stake holders with “E-
Pashudhan Haat” iii) real time data on availability of germplasm uploaded
periodically; and iv) maintaining identification and traceability of germplasm
sold through e market.
•Animal Health Card:-
Aiming to control animal diseases and boost milk output, the
Agriculture Ministry has sought measures like a new scheme on
animal health card, e-market platform for bovine germplasm and
increase in allocation for Rashtriya Gokul Mission in Budget 2016.

18. •Pradhan Mantri Kaushal Vikas Yojana:-
This is the flagship scheme for skill training of youth to be implemented by
the new Ministry of Skill Development and Entrepreneurship through the
National Skill Development Corporation (NSDC). The scheme will cover 24
lakh persons.
Skill training would be done based on the National Skill Qualification
Framework (NSQF) and industry led standards.
Under the scheme, a monetary reward is given to trainees on assessment
and certification by third party assessment bodies.
The average monetary reward would be around Rs.8000 per trainee.

19. Agricultural Policy
 For almost 60 years, India’s agricultural policy has been guided by Five-
Year Plans, the latest of which is the 12th (2012-17)
 The Plan’s broad vision is “Faster, Sustainable, and More Inclusive
Growth”, leading to broad-based improvement in the economic and social
conditions of people
 As per the Plan, the higher GDP growth of 8.2% assumed envisages 4%
growth in the agriculture and allied sectors
 Some of the key priorities are to improve the economic viability of
farming ,to encourage diversification, increase investments, reduce
environmental degradation, and enhance food security by further
production diversification
 Importantly the 12th Five-Year Plan continued the important National
Food Security Mission (NFSM), which have had a large impact on the
agricultural sector.

20. National Food Security
Act, 2013
 The National Food Security Act, 2013 (also Right to Food Act) aims
to provide subsidized food grains to approximately two thirds of India's
population
 It was signed into law on 12 September 2013
 Following food security programmes were implemented under NFSA
- Midday Meal Scheme
- Integrated Child Development Services scheme
- Public Distribution System
- NFSA 2013 recognizes maternity entitlements.

21. Food policy
 A similar direction is promoted by the food policy
which is very closely linked to the agricultural policy.
 Food commodities are procured by the Food
Corporation of India (FCI) and other para-state
institutions.
 The Commission for Agriculture Costs and Prices
(CACP) sets Minimum Support Price (MSP) for 25
commodities and Statutory Minimum Price (SMP)
for one.
 A buffer stock is maintained in order to meet shortage
as well as control price.
 Subsidised food is supplied to poor through Public
Distribution System (PDS).

22. ‘National Food Security Mission’
 The National Development Council in 2007 launched a Food Security
Mission to increase the production of rice by 10 million tons, wheat by 8
million tons and pulses by 2 million tons by the end of the Eleventh Plan
(2011-12)
 'National Food Security Mission' (NFSM), was launched in October 2007.
The Mission is being continued during 12th Five Year Plan with new targets
of additional production of food grains comprising of :
 10 million tons rice
 8 million tons of wheat
 4 million tons of pulses
 3 million tons of coarse cereals by the end of 12th Five Year Plan.

23. What are the top agricultural issues India
should focus on to meet its food security
needs?
The top issue by far for Indian agriculture is increasing
productivity.
Another key issue for productivity enhancement is the
development of high-value commodity supply chains.
The impact of climate change on smallholder agriculture
and the high risk that farmers face in the event of droughts
and floods.