INDIAN ECONOMY

NCERT Notes
CHAPTER 06 31

Agriculture

Sources Class-IX New NCERT Chap 1 (The Story of Village Palampur, Chap 4 – Food Security of India),
Class-X New NCERT Chap 3 (Money and Credit), Class-IX & X Old NCERT Chap 4 (Towards Economic Development),
Class-XI New NCERT Chap 1 (Indian Economy on the Eve of Independence), Chap 2 (Indian Economy (1950-1990),
Class-XI New NCERT Chap 6 (Rural Development)

Due to low productivity and use of outdated

Introduction to Indian Agriculture technology, the farmers lacked proper
Agriculture is defined as the art, science and business infrastructure, this problem was replaced by
of producing crops and livestock for economic introduction of Green revolution in the country.
purposes.
Agriculture comes under the primary sector of the Significance of Agriculture
Indian economy. It plays an important role in the in Indian Economy
Indian economy as around 50% of the population is
still dependent on agriculture and allied activities. The following points highlight significance of
This is the reason why India is known as an agriculture sector in Indian economy :
Agriculture-based economy.
Contribution of Agriculture in
Agriculture sector includes core farming, horticulture,
animal husbandry, dairy, fishing etc. National Income
Agriculture is a dominant sector in India, contributing Agricultural sector contributes a significantly
19.9% to the total GDP (Gross Domestic Product). The large share to the national income of India. The
increasing population of India is dependent on this share of agriculture in GDP increased to 19.9% in
sector for its living. 2021-21 from 17.8% in 2019-20.
During the COVID-19 pandemic, it was the only
Reforms in Indian Agriculture sector to witness a positive growth rate. In
The credit for systematic changes in Indian 2020-21, the percentage share of Gross Value
agriculture is given to the policies of land reforms and Added (GVA) of Agriculture and Allied sector to
Green Revolution. total economy reached 20.2%
In the era of 1951, first attempt was made to bring Contribution of Agriculture in Employment
equality in agriculture with land reforms, with major
The share of agriculture has been falling in the
aim of changing the ownership of the holdings. In
country’s gross income while industrial and
addition to promote equality, importance was given to
service sectors’ shares have been on a rise
fixing the ceiling.
constantly. But from the livelihood point of view,
It was majorly done to decrease the ownership of about 52% people of India depend on agricultural
agriculture land of an individual with determining the sector.
maximum amount of ownership of agricultural land.
In 2020-21, contribution of agriculture in GDP was
At the time of independence, 75% of the country’s 19.9% which increases exports and improves
population was dependent on agriculture. India’s trade deficit.
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32

Contribution in Economic Labour Intensive Cultivation Due to the increase

Growth and Capital Formation in population, the pressure on land holding
increased. Land holdings get fragmented and
Economic transformation in developing nations is subdivided and become uneconomical. Machinery
propelled by increase in agricultural incomes and and equipment cannot be used on such farms.
industrial growth. For example, China’s economic
Under Employment Due to inadequate irrigation
growth.
facilities and uncertain rainfall, the production of
Agriculture has the potential to increase India’s agriculture is less, farmers find work a few
overall Gross Domestic Product (GDP) growth. months in the year. Their capacity of work cannot
There is general agreement on the necessity of capital be properly utilised. In agriculture, there is under
formation. Since agriculture happens to be the largest employment as well as disguised unemployment.
industry in a developing country like India, it can and Small Size of Holdings Due to large scale
must play an important role in pushing up the rate of sub-division and fragmentation of holdings, land
capital formation. holding size is quite small. Average size of land
Contribution of Agriculture in Industries holding was 2.3 hectares in India while in
Australia it was 1993 hectares and in the USA it
Agriculture supplies raw materials to various was 158 hectares.
agro-based industries like sugar, jute, cotton textile
and Vanaspati industries. Food processing industries Traditional Methods of Production In India,
are similarly dependent on agriculture. Therefore, the methods of production of agriculture along with
development of these industries entirely depends on equipment are traditional. It is due to poverty and
agriculture. illiteracy of people. Traditional technology is the
main cause of low production.
Increase in rural purchasing power is very necessary
for industrial development as two-thirds of the Indian Low Agricultural Production Agricultural
population live in villages. After the green revolution, production is low in India. India produces 27 Qtls
the purchasing power of the large farmers increased wheat per hectare. France produces 71.2 Qtls per
due to their enhanced income and negligible tax burden. hectare and Britain 80 Qtls per hectare. Average
annual productivity of an agricultural labourer is
Indian agriculture plays a vital role in internal and
162 dollars in India, 973 dollars in Norway and
external trade of the country. Internal trade in
2408 dollars in USA.
food-grains and other agricultural products helps in
the expansion of the service sector. In the year Dominance of Food Crops 75% of the cultivated
1990-91, export share of Agriculture sector was 1.9% area is under food crops like wheat, rice and
which increased to 2.46% in 2020-21. This sector has bajra, while 25% of cultivated area is under
2.2% share in world’s population export. commercial crops. This pattern is the cause of
backward agriculture.
Agricultural Inputs
Land is the most important input for the agriculture.
Challenges Associated with India’s
Apart from land, following agricultural inputs are Agriculture Sector
essential for agriculture : There are various challenges associated with Indian
— Technical knowledge — Labour agriculture. Prominent among them are as follows :
— Livestock — Agro-implements
Issues Related to Subsidies
— Irrigation — Seeds
Agricultural subsidies were introduced to
— Fertilisers and insecticides — Storage
incentivise farmers to take up the green
revolution. Subsidies also intended to reduce the
Salient Features of Indian Agriculture cost of production for farmers and to check food
The following are the salient features of Indian price inflation and protect consumers.
agriculture : However, today it has become apparent that
Dependence on Monsoon Agriculture in India mainly subsidies are inflicting significant damage on
depends on monsoon. If monsoon is good, the different aspects of the economy.
production will be more and if monsoon is less Subsidised Urea has led to massive overuse of
than average then the crops fail. Sometimes floods nitrogenous fertilisers, leading to damaged soils
destroy the crops. As irrigation facilities are quite and pollution of local water bodies.
inadequate, agriculture depends on the monsoon.
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33

Similarly, power subsidies have not only led to an Commodity Market It is about trading of precious
alarming overuse of groundwater, but also it has metals, energy, oil, spices and so on. There are three
severely damaged the health of power distribution commodity markets in India :
companies. — National Commodity and Derivative Exchange.
Credit subsidies like loan waivers have weakened — Multi-Commodity Exchange.
the Indian banking system (due to increased
— National Multi-Commodity Exchange of India.
NPAs), having negative spillover effects on the
economy. Future Market In future contracts, the buyer has the
obligation to purchase a specific assets and the seller
Output price supports in the form of Minimum
has to sell and deliver that asset at a specific future
Support Price (MSP) basically apply to only a
date. Agri-futures markets are considered to be one of
handful of crops, especially wheat and rice that are
the ways to ensure appropriate farm prices.
procured by the government in a handful of states.

Consumer Oriented Policies Agricultural Marketing Policies

Whenever there is a price rise in any agricultural Due to restrictions imposed by Agricultural Produce
commodity, the government imposes restrictions Market Committee (APMC) Acts passed by various
on exports to protect Indian consumers. It creates states, Indian farmers can only sell their produce at
hindrances for farmers taking advantage of high Farm gate or local market (haat) to village
prices in foreign markets. aggregators, APMC mandis and to the government at
High prices alongwith the Essential Commodities the Minimum Support Price (MSP).
Act (ECA), has declined private investment in The introduction of the Electronic National
export infrastructure such as warehouses and cold Agriculture Market (e-NAM)—an online trading
storage systems. This lack of storage infrastructure platform for agricultural commodities in India—is a
compels farmers to go for distress sale. step in the right direction. However, its effects have
been underwhelming due to three major factors :
Agriculture Marketing — Time cost of transactions
— Quality assessment challenges
It includes the operations such as collecting, — Transportation logistics
grading, processing, preserving, transportation
and financing.
Marginal Land Holdings
The actors in product marketing include farmers, ■ Raising farm productivity is critical for long-term
traders, wholesalers, processors, importers,
increase in farmers income in India, as land
exporters, marketing cooperatives, regulated fragmentation means that many Indian farmers are
market committees and retailers. farming plots of such small sizes that even doubling
their incomes would leave them with meagre earnings.
Various Marketing Methods ■ In India, nearly 85% of agricultural land holdings are
The various marketing methods are as follows : small and marginal (less than 2 hectare).
■ The Ashok Dalwai Committee Report on doubling
Rural Primary Markets Periodic markets or haats
farmers’ income, estimated that doubling farmers’
and fairs (melas, jatras) are the major rural
income will require an agricultural growth rate of
markets in India. Rural primary markets include 10-11% per annum, until 2022–23.
mainly the periodical markets known as haats, ■ However, agricultural growth rate and farmers’ income
shandies, painths and fairs. The producers sell growth rate has been stagnating and well below the
their produce directly to the consumers or to small required rate of growth.
rural retailers.
Cooperative Marketing The cooperative
marketing is an alternative to the private dealers
Efforts of Government in the
with the main objective of securing a large share Field of Agriculture
of profits for the producer. Government has taken many steps to improve
Contract Farming It can be defined as agricultural agriculture marketing. Some of these are :
production carried out according to an agreement Kisan Rail They are multi commodity trains
between a buyer and farmers, which establishes consisting of refrigerated coaches to swiftly transport
conditions for the production and marketing of a perishable agricultural products from supply centres
farm product or products. Typically, the farmer to demand centres.
agrees to provide agreed quantities of a specific
agricultural product.
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34

Agricultural Produce Market Committee (APMC) An Kaleshwaram Lift Irrigation Project The
APMC is a marketing board established by a state Kaleshwaram project is an off-shoot of the original
government in India to ensure: farmers are Pranahita-Chevella Lift Irrigation Scheme taken
safeguarded from exploitation by large retailers. They up by the government in 2007 when Andhra
also ensure that the farm to retail price spread does Pradesh was not divided. It is aimed to make
not reach excessively high levels. Telangana drought proof by harnessing the flood
Agricultural Marketing Information Network waters of the Godavari.
(AGMARKNET) The AGMARKNET is a G2C
e-governance portal. It caters to the needs of various Organic Farming
stakeholders such as farmers, industry, policy-makers
According to Food Safety and Standard Authority
and academic institutions by providing agricultural
of India (FSSAI), “Organic farming is a system of
marketing related information from a single window.
farm design and management to create an
e- NAM National Agriculture Market (e-NAM) is ecosystem of agriculture production without the
pan-India electronic trading portal linking existing use of synthetic external inputs such as chemical
APMC mandis to create a unified national market for fertilisers, pesticides and synthetic hormones or
agricultural commodities. genetically modified organisms.”
Commodity Boards Commodity Boards were set up to Organic farm produce means the produce obtained
operate for rubber, coffee, tea, tobacco, spices, from organic agriculture, while organic food
coconut, oilseed and vegetable oils, horticulture, etc. means food products that have been produced in
The National Dairy Development Board is also accordance with specified standards for organic
engaged in the marketing of agricultural commodities. production.
Soil Health Card Scheme The scheme was launched
by Government of India in February, 2015. Under this Indian Scenario
scheme, the government plans to issue soil cards to Regarding Organic Farming
farmers which will carry crop-wise recommendations
of nutrients and fertilisers required for the individual Sikkim became the first State in the world to
farmers to help farmers to improve productivity. become fully organic in 2016.
Agri-export Policy 2018 The government introduced North-East India has traditionally been organic
the policy with the objectives- to strive to double and the consumption of chemicals is far less than
India’s share in world agri-exports by integrating the rest of the country.
with global value chains and enables farmers to get Similarly, the tribal and island territories have
benefit of export opportunities in overseas market. been traditionally practicing organic farming. The
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) major organic exports from India have been flax
PMKSY is a centrally sponsored scheme (Core Scheme) seeds, sesame, soyabean, tea, medicinal plants,
launched in 2015. Under the scheme, Centre-States ratio rice and pulses.
will be 75:25%. In the case of the North-Eastern region
and hilly states, this ratio will be 90:10. Government Initiatives
Kisan Urja Suraksha evam Utthaan Mahabhiyan in the Field of Organic Farming
(KUSUM) It aims to promote use of solar energy Government initiatives to promote organic farming
among the farmers. Installation of standalone off-grid are as follows :
solar water pumps to fulfil irrigation needs of farmers
Mission Organic Value Chain Development for
not connected to grid. Solarisation of existing
North-East Region (MOVCD) It is a Central Sector
grid-connected agriculture pumps to make farmers
Scheme, a sub-mission under National Mission for
independent of grid supply and also sell surplus solar
Sustainable Agriculture (NMSA).
power generated to Discom and get extra income.
It was launched by the Ministry of Agriculture and
Meghdoot App The Ministry of Earth Sciences and
Farmers Welfare in 2015 for implementation in the
Agriculture have launched a mobile application that
states of Arunachal Pradesh, Assam, Manipur,
will provide location and crop or livestock-specific
Meghalaya, Mizoram, Nagaland, Sikkim and
weather-based agro advisories to farmers in local
Tripura.
languages. It has been developed by experts from the
India Meteorological Department and Indian The scheme aims to develop certified organic
Institute of Tropical Meteorology and the Indian production in a value chain mode to link growers
Council of Agricultural Research. with consumers and to support the development of
the entire value chain.
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35

Paramparagat Krishi Vikas Yojana (PKVY) was MSP is a ‘minimum price’ for any crop that the
launched in 2015 is an extended component of Soil government considers as remunerative for farmers
Health Management (SHM) of the major project and hence deserving of ‘support’.
National Mission of Sustainable Agriculture The Commission for Agricultural Costs and Prices
(NMSA). Under PKVY, Organic Farming is (CACP) recommends MSPs for 22 mandated crops and
promoted through adoption of organic villages by Fair and Remunerative Price (FRP) for sugarcane.
cluster approach and Participatory Guarantee CACP is an attached office of the Ministry of
System (PGS) certification. Agriculture and Farmers Welfare.
Certification Schemes Food Safety and Standards The mandated crops include 14 crops of the kharif
Authority of India (FSSAI) is the food regulator in season, 6 rabi crops and 2 other commercial crops.
the country and is also responsible for regulating
In addition, the MSPs of toria and de-husked coconut
organic food in the domestic market and imports.
are fixed on the basis of the MSPs of rapeseed/mustard
Participatory Guarantee System (PGS) It is a and copra, respectively.
process of certifying organic products, which The CACP considers various factors while
ensures that their production takes place in recommending the MSP for a commodity, including
accordance with laid-down quality standards. cost of cultivation.
PGS Green is given to chemical free produce
It takes into account the supply and demand situation
under transition to ‘organic’ which takes 3 years.
for the commodity, market price trends (domestic and
It is mainly for domestic purposes.
global) and parity vis-a-vis other crops, and
One District - One Product (ODOP) The implications for consumers (inflation), environment
programme aims to encourage more visibility and (soil and water use) and terms of trade between
sale of indigenous and specialised products/crafts agriculture and non-agriculture sectors.
of a particular region or district, generating
The Cabinet Committee on Economic Affairs (CCEA)
employment at the district level. The presence of
of the Union Government takes a final decision on the
aggregators is imperative to bring about
level of MSPs and other recommendations made by
economies of scale for the small and marginal
CACP.
farmers.
PM Formalisation of Micro Food Processing Government Steps for MSP
Enterprises (PM FME) The Ministry of Food
The following steps were taken by the government of
Processing Industries (MoFPI) launched the PM
India for MSP :
FME scheme as a part of ‘Atmanirbhar Bharat
Abhiyan’. It aims to bring in new technology, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan
apart from affordable credit to help small (PM-AASHA) PM-AASHA was launched to ensure
entrepreneurs penetrate new markets. adequate prices to farm produce. It was launched in
2018. It had following three components:
Zero Budget Natural Farming It is a method of
— Price Support Scheme (PSS)
chemical-free agriculture drawing from
traditional Indian practices. — Price Deficiency Payment Scheme (PDPS)
— Private Procurement and Stockist Scheme (PPSS)
National Programme for organic Production
(NPoP) NPoP is managed by Agriculture and Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
Processed Food Products Export Development Under the scheme, the Centre transfers an amount of
Authority (APEDA) under the ministry of ` 6,000 per year, in three equal installments, directly
Commerce and Industry. NPoP provides standards into the bank accounts of all landholding farmers
for organic production, systems, criteria irrespective of the size of their land holdings. It was
and procedure for accreditation of certification launched in February 2019. It is a Central Sector
bodies. Scheme with 100% funding from the Government of
India.
It is being implemented by the Ministry of Agriculture
Minimum Support Price (MSP) and Farmers Welfare. The entire responsibility of
The MSP is the rate at which the government identification of beneficiary farmer families rests with
purchases crops from farmers, and is based on a the State / UT Governments.
calculation of at least one-and-a-half times the
cost of production incurred by the farmers.
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36

It works towards restoring soil fertility and

Crop Insurance productivity at the individual farm level and
Crop insurance is to protect farmers against either enhancing farm level economy.
the loss of their crops due to natural disasters, It further aims to augment the availability of vegetable
such as hail, drought and floods, or the loss of oils and to reduce the import of edible oils.
revenue due to declines in the prices of
agricultural commodities. National Food Security Act (NFSA), 2013
The scheme Pradhan Mantri Fasal Bima Yojana It legally entitles up to 75% of the rural population
(PMFBY) was launched in 2016 and is being and 50% of the urban population to receive subsidised
administered by the Ministry of Agriculture and food grains under the Targeted Public Distribution
Farmers Welfare. System.
It replaced the National Agricultural Insurance The eldest woman of the household of age 18 years or
Scheme (NAIS) and Modified National above is mandated to be the head of the household for
Agricultural Insurance Scheme (MNAIS). the purpose of issuing ration cards under the Act.
It aims to provide a comprehensive insurance
cover against the failure of the crop thus helping Public Distribution System (PDS)
in stabilising the income of the farmers. It is an Indian Food Security System established under
All food and oilseed crops and annual the Ministry of Consumer Affairs, Food and Public
commercial/horticultural crops for which past Distribution.
yield data is available are covered. PDS evolved as a system of management of scarcity
The prescribed premium is 2% to be paid by through distribution of food grains at affordable
farmers for all kharif crops and 1.5% for all rabi prices.
crops. In the case of annual commercial and PDS is operated under the joint responsibility of the
horticultural crops, the premium is 5%. Central and the State Governments.
The Central Government, through Food Corporation
Food Security of India (FCI), has assumed the responsibility for
procurement, storage, transportation and bulk
Food security, as defined by the United Nations’ allocation of food grains to the State Governments.
Committee on World Food Security, means that all
The operational responsibilities including allocation
people, at all times, have physical, social and
within the State, identification of eligible families,
economic access to sufficient, safe and nutritious
issue of Ration Cards and supervision of the
food that meets their food preferences and dietary
functioning of Fair Price Shops (FPSs) etc., rest with
needs for an active and healthy life.
the State Governments.
Food security is the combination of the following
Under the PDS, presently the commodities namely
three elements:
wheat, rice, sugar and kerosene are being allocated to
— Food Availability i.e. food must be available in the States/UTs for distribution. Some States/UTs also
sufficient quantities and on a consistent basis. It distribute additional items of mass consumption
considers stock and production in a given area through the PDS outlets such as pulses, edible oils,
and the capacity to bring in food from elsewhere, iodised salt, spices, etc.
through trade or aid.
— Food Accessibility i.e. people must be able to
regularly acquire adequate quantities of food,
Agriculture Allied Sector
through purchase, home production, barter, Agriculture allied sector include livestock/animal
gifts, borrowing or food aid. rearing, fisheries sector horticulture, floriculture, etc.
— Food Affordability i.e. people must be able to
afford food.
Livestock/Animal Rearing
Livestock is commonly defined as domesticated
National Food Security Mission animals raised in an agricultural setting to produce
It is a centrally sponsored scheme launched in 2007. labour and commodities such as meat, eggs, milk, fur,
leather and wool.
It aims to increase production of rice, wheat,
pulses, coarse cereals and commercial crops, There are about 302.79 million bovines, 74.26 million
through area expansion and productivity sheep, 148.88 million goats and about 9.06 million pigs
enhancement. as per 20th livestock census in the country.
NCERT Notes INDIAN ECONOMY
37

According to estimates of the Central Statistics Government Steps Related to

Office (CSO), the value of the output livestock Agricultural Allied Sectors
sector at current prices was about ` 5,91691 crore
during 2015-16 which is about 28.5% of the value Horticulture Cluster Development Programme The
of output from agricultural and allied sectors. Ministry of Agriculture and Farmers Welfare launched
the Horticulture Cluster Development Programme
India accounts for about 17% of the cattle
(HCDP) on 31st May, 2021 to promote the export of
population and 64% of the buffalo population.
horticultural produce.
India is the largest producer of milk in the world.
It is a Central sector programme aimed at growing and
Fisheries Sector developing identified horticulture clusters to make
them globally competitive. It will be implemented by
India has a coastline of 7516.6 km (6100 km of the National Horticulture Board (NHB) of the Ministry
mainland coastline and coastline of 1197 km of Agriculture and Farmers’ Welfare.
Indian islands) touching 13 States and Union
Kisan Sarathi Indian Council of Agriculture Research
Territories (UTs).
(ICAR) celebrated its 93rd foundation day on 16th July,
Indian ocean is the least exploited of all the 2021 and on the occasion, the Kisan Sarathi platform was
oceans in the world in terms of fishing. launched. It was jointly launched by the Union Minister
In India, 75% of marine fish production comes for Agriculture and Farmers’ Welfare and the Union
from the West coast. Minister of Electronics and Information Technology. It
Presently, India is the second largest fish will help farmers to interact and avail personalised
producing and aquaculture nation in the world. advisories on agriculture and allied areas directly from
The Indian fisheries sector is a sunrise sector. India the respective scientists of Krishi Vigyan Kendra (KVKs).
is also a major producer of fish through aquaculture Pradhan Mantri Matsya Sampada Yojana This scheme
and ranks second in the world after China. was launched for Sustainable Development of
According to Food and Agricultural Organisation Fisheries sector on 10th September, 2020 as part of
(FAO), India is home to more than 10% of the Atma Nirbhar Bharat Package.
global fish diversity. The total fish production The investment of ` 20,5000 crores under PMMSY is the
during 2019-20 (provisional) stood at 14.16 highest ever in the fisheries sector. Out of this, an
million Metric Tonne (MMT) with a contribution investment of about ` 12,340 crores is proposed for
of 10.43 MMT from the inland sector and 3.72 beneficiary oriented activities in marine, Inland
MMT from the marine sector. fisheries and aquaculture and about 7710 crores
investment is proposed for fisheries infrastructure.
Horticulture Agriculture Infrastructure Fund It was launched in 2020
It is the branch of agriculture concerned with as a part of the stimulus package of ` 20 lakh crore
intensively cultured plants directly used by man announced in response to the Covid-19 crisis.
for food, medicinal purposes and aesthetic It aims to provide medium-long term debt financing
gratification. facility for investment in viable projects for post-harvest
In other words, it is cultivation, production and management infrastructure and community farming assets.
sale of vegetables, fruits, flowers, herbs, Biotech-KISAN Programme It is a scientist-farmer
ornamental or exotic plants. partnership scheme launched in 2017. The Ministry of
Science and Technology has issued a special call for
Floriculture the North-East Region as a part of its Mission
It is a branch of horticulture that deals with the Programme ‘Biotech-Krishi Innovation Science
cultivation, processing and marketing of ornamental Application Network (Biotech-KISAN)’.
plants vis-a-vis landscaping of small or large areas. Aroma Mission and Floriculture Mission The Union
It involves maintenance of gardens so that the Minister of State Science and Technology has
surroundings may appear aesthetically pleasant. proposed Integrated Aroma Dairy Entrepreneurship
The mission will focus on commercial floral crops, for Jammu and Kashmir to augment the income of
seasonal/annual crops, wild ornaments and farmers in the year 2016. The Aroma Mission, also
cultivation of flower crops for honey bee rearing. popularly referred as ‘Lavender or Purple Revolution’,
has started from Jammu Kashmir and transformed the
Some of the popular crops include Gladiolus, lives of farmers who are able to grow lavender, make
Canna, Carnation, Chrysanthemum, Gerbera, lucrative profit and improve their lives. Earlier, the
Lilium, Marigold, Rose, Tuberose etc. floriculture mission was launched in 21 States and
Union Territories.
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National Gene Bank Gene Banks are a type of National Cooperative Development
bio-repository which preserve genetic material, a Corporation (NCDC)
collection of seed plants, tissue cultures etc. The
It is a statutory corporation set up under an Act of
Union Minister for Agriculture and Farmers Welfare
Indian Parliament on 13th March, 1963.
inaugurated the world’s second-largest refurbished
state-of-the-art National Gene Bank at the National Its objectives are planning and promoting
Bureau of Plant Genetic Resources (NBPGR) in the programmes for production, processing, marketing,
year 1996. storage, export, import of agricultural produce, etc.
National Agricultural Cooperative Marketing
Agricultural Institutions Federation of India Ltd (NAFED)
Various agricultural institutions are as follows: NAFED is an apex organisation of marketing
cooperatives for agricultural produce in India. It
Indian Council for Agricultural Research (ICAR) was established on 2nd October, 1958.
The Indian Council for Agricultural Research NAFED is the nodal agency to implement price
(ICAR) was established on 16th July, 1929 as a stabilisation measures under ‘Operation Greens’
registered society under the Societies Registration which aims to double the farmers’ income by 2022.
Act, 1860.
It is an autonomous organisation under the
Agricultural and Processed Food Products Export
Department of Agricultural Research and Education Development Authority (APEDA)
(DARE), Ministry of Agriculture and Farmers It was established by the Government of India under
Welfare, Government of India. the Agricultural and Processed Food Products
It is headquartered at New Delhi with 102 ICAR Export Development Authority Act, 1985. It was
institutes and 71 agricultural universities spread established on 13th February, 1986.
across the country, this is one of the largest national It functions under the Ministry of Commerce and
agricultural systems in the world. Industry. The Authority has its headquarters in New
It is the apex body for coordinating, guiding and Delhi.
managing research and education in agriculture APEDA is mandated with the responsibility of
including horticulture, fisheries and animal export, promotion and development of the
sciences in the entire country. scheduled products viz.
The ICAR has played a pioneering role in promoting — Fruits, vegetables and their products;
Green Revolution and subsequent developments in — Meat and meat products; poultry and poultry
agriculture in India. Through its research and Products; dairy products;
technology development, it has enabled the country — Confectionery, biscuits and bakery products;
to increase the production of foodgrains,
— Honey, jaggery and sugar products;
horticultural crops, fish, milk and eggs since
— Cocoa and its products, chocolates of all kinds;
1950-51.
alcoholic and non-alcoholic beverages;
Food and Agriculture Organisation (FAO) — Cereal and cereal products;
FAO is a specialised agency of the United Nations — Groundnuts, peanuts and walnuts, pickles, papads
that leads international efforts to defeat hunger. and chutneys;
World Food Day is celebrated every year on 16th — Guar gum;
October to mark the anniversary of the FAO in 1945. — Floriculture and floriculture products; herbal and
It is one of the UN Food Aid Organisations based in medicinal plants.
Rome (Italy). Its sister bodies are the World Food
Programme and the International Fund for Tribal Co-operative Marketing Development
Agricultural Development (IFAD). Federation of India (TRIFED)
It came into existence in 1987. It is a national-level
Council for Advancement of People Action and
apex organisation functioning under the
Rural Technology (CAPART) administrative control of the Ministry of Tribal
It is an autonomous body set up by the ministry of Affairs.
Rural Development to interface between the TRIFED has its Head Office located in New Delhi
government and NGOs that seek to improve the and has a network of 13 Regional Offices located at
quality of life in rural areas. It was constituted on various places in the country.
1st September, 1986.
 NCERT Notes INDIAN ECONOMY
39

The ultimate objective of TRIFED is Fourth Five Year Plan (1969-1974) In this plan, special
socio-economic development of tribal people in emphasis was laid to plan research in agriculture
the country by way of marketing development of through science and technology, that helped in
the tribal products such as metal craft, tribal advancement of agriculture sector. This plan was based
textiles, pottery, tribal paintings and pottery on on Ashok Rudra and AS Mannis model.
which the tribals depend heavily for a major Fifth Five Year Plan (1974-1979) 15% revenue was
portion of their income. allotted for agriculture sector during this plan. 1520
Agriculture Technology Infrastructure Fund lakhs tonnes was the target for food production, but the
results achieved were more than that.
For promoting, agricultural distribution at
national level, Agriculture Technology Sixth Five Year Plan (1980-1985) The second part of
Infrastructure Fund was established in the year Green revolution was started during this plan, with
2015. major emphasis on investment in agriculture sector.
The entire focus of this plan was on population control
Agriculture and Farmers’ Welfare Ministry
and modernisation.
promotes this fund for providing basic
agricultural techniques to the farmers. Seventh Five Year Plan (1985-1990) Other than cotton
production, all the other crops exceeded the setted
targets. Modernisation in agriculture sector was able to
Agri Export Zones (AEZs) reduce the poverty prevailing in rural areas.
■ Under Export-Import Policy, in the year 2001-02, Eighth Five Year Plan (1992-1997) During this period,
eight new Agri Export Zones were established in agriculture growth was at 4.7‰ Liberalisation,
seven states. Privatisation and Globalisation were the major focus of
■ In India, more than 60 Agri Export zones have this plan, not much attention was paid in the field of
been established till now. Among them, some agriculture.
prominent ones are Madhya Pradesh for spices,
Uttarakhand for Basmati rice, West Bengal and Ninth Five Year Plan (1997-2002) Agriculture sector
Tamil Nadu for mango, West Bengal for green grew at 2.06% during this period. Rural development
vegetables, Maharashtra for onion, etc. along with agriculture and generating employment
opportunities were the major points of focus during this
period.
Agriculture in Five Years Plans Tenth Five Year Plan (2002-2007) National Agriculture
Policy, 2000 was adopted during this plan. Special
First Five Year Plan (1951-1956) Under this plan,
emphasis were given on soil, health and management of
the agriculture sector was given priority 31% of
water resources.
the total revenue allocation was provided to the
agriculture sector. Under this plan, the average Eleventh Five Year Plan (2007-2012) A target of 4%
annual production was 67 lakh tonnes. The annual growth rate was set during this plan. The major
agriculture sector registered a growth of 2.71% objectives of this plan were growth in agriculture
in this five year plan. productivity, employment generation, population
pressure on land etc.
During this plan, the major emphasis was given
in construction of dams and improving the Twelfth Five Year Plan (2012-2017) 4% annual growth
irrigation facilities for agriculture purposes. rate was the seted target set for agriculture sector, in
which technology as engine of growth was declared for
Work on projects like Bhakra Nangal Dam,
agriculture sector.
Hirakud dam was started in this period.
Second Five Year Plan (1956-1961) A total of
20% revenue was allocated to agriculture sector
Agricultural Revolutions
in this plan. During this time, the productivity Various agricultural revolutions are as follows:
remained less, because industries were the focus
point. Green Revolution
Third Five Year Plan (1961-1966) In this plan, Green Revolution was expanded in two phases, first was
agriculture was again back in focus, intensive from 1960s to mid 1970s and the second phase was from
agriculture programme and high yield varieties the mid 1970s to mid 1980s.
of seeds were promoted in agri based districts. An American agronomist Norman Borlaug started the
The effects of Green revolution started giving Green Revolution in the 1960s, he is considered as the
positive results, during the period the ‘Father of Green Revolution’. In India, Green
production of wheat improved. Revolution was led by MS Swaminathan.
 NCERT Notes INDIAN ECONOMY
40

Due to spread of technology in Green Evergreen Revolution

Revolution, India is able to achieve self-reliance
Renowned agricultural scientists Dr. MS Swaminathan
in production of food grains. Now, India is no
conceptualised the Evergreen Revolution in year 2006.
longer dependent on imports of food grains.
The focus of the Evergreen Revolution is the
The Green Revolution has increased the income
achievement of the goal of sustainable agriculture
of the farmers and reduced their dependency on
development with present perspective the Blue, Green,
the monsoon.
Yellow, Pink, White and Brown Revolutions are also
Green Revolution ended the agricultural included under the Evergreen Revolution.
stagnation of the colonial period, it was due to
The main objective of the Evergreen Revolution is to
the use of high yielding varieties of seeds
increase productivity, along with relying on products
(HYV-seeds).
which are environmentally safe, economically viable
The irrigation facilities and use of fertilisers has and socially sustainable.
enhanced the agriculture productivity in India,
which helped in rise of wheat and rice Important Revolutions of Indian Agriculture and Allied Sector
production in the country.
Revolution Father of the Products/Objectives
White Revolution Revolution

The programme for increasing the production Evergreen MS Swaminathan Integration of ecological
Revolution principles in technology
of milk in the country is called as White development
Revolution. The government launched
‘Operation Flood’ to intensify the speed in Protein Revolution Coined by Higher Production
Narendra Modi (Technology-driven
White Revolution. and Arun Jaitley Second Green Revolution)
‘Operation Flood’ was launched on 13th
Yellow Revolution Sam Pitroda Oilseed Production
January, 1970 and Dr. Verghese Kurien was the (Especially Mustard and
lead person to promote it. He is called the Sunflower)
‘Father of White Revolution’ in India.
Black Revolution – Petroleum products
Blue Revolution Blue Revolution Dr Arun Krishnan Fish Production
Progress made in the field of fish production is Brown Revolution – Leather / Cocoa /
called as Blue Revolution. India is the third Non-Conventional
largest country in the world in the field of fish Products
production. The Blue Revolution was initiated Golden Fiber – Jute Production
through one package programme in the 1960s. Revolution
Its expansion in India is increased during the Golden Revolution Nirpakh Tutej Fruits / Honey Production
Seventh Five Year Plan. With the help of World / Horticulture
Development
Bank, the one package programme was first
implemented in 5 coastal states of India. Grey Revolution – Fertilisers
As per 2020-21, the total fish production in the Pink Revolution Durgesh Patel Onion Production /
country was 14.16 million tonnes. Pharmaceuticals / Prawn
Production
Second Green Revolution Silver Revolution Indira Gandhi Egg Production / Poultry
In 2006, Science conference, to counter the ill (Mother of the Production
effects of first Green Revolution and ensure Revolution)
holistic development in the agriculture sector Silver Fiber – Cotton
keeping in view the environmental interests. Revolution
Dr APJ Abdul Kalam started the Second Green Red Revolution Vishal Tewari Meat Production / Tomato
Revolution in the country. Under this, the seed Production
selection is done on the basis of land. Round Revolution – Potato
In Second Green Revolution through the Green Revolution MS Swaminathan Food Grains
medium of Biotechnology and genetic
engineering the emphasis was laid upon White Revolution Verghese Kurien Milk Production
development of high productivity and quality of
seeds.