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Indian Economic Policy



                  Notes          however, clear growth in oilseeds, sugarcane and cotton. In general, it is estimate that the annual rate
                                 of growth in agriuclture was 2.3 per cent, as against the targeted 4 per cent.
                                 Agriculture in the Eleventh Plan (2007-12)

                                 During the 11th Plan also, the Planning Commision has fixed the target of 4 per cent, rate of growth
                                 in agriculture, as if this is the first time such a “high” rate of growth has been fixed. The Planning
                                 Commission has appointed a special Agricultural Commission to monitor this rate of growth.
                                                  Table 7 : Crop Production During Ninth and Tenth Plans

                                   Crop                          Base Level  Plan Target   Actual
                                                                  (1996-97)   (2001-02)   Output
                                                                  Output                 in 2001-02    2006-07
                                   All foodgrains (m. tonnes)       199          234        213         216
                                   Oilseeds (m. tonnes)             24           30         21           24
                                   Sugarcane (m. tonnes)            278          336        297         345
                                   Cotton (m. bales of 170 kg.)     14           16         10           23

                                 Source : Five Year Plan documents and Economic Survey, 2008-09 and Ministry of Agriculture.
                                 *3rd Advance Estimates

                                                    Table 8 : Some key Indicators of Agriculture Progress
                                                                                                          Ratio
                                                                                                         between
                                                        1950-51 1964-65 1990-91 2006-07 2007-08 2008-09 2009-10 1950-51
                                                                                                        & 2009-10

                                   1. Foodgrains (m.tonnes)  51  89     176   216    231    234    218     4.27
                                     Rice           “      21    39     74     93     96     99     89     4.24
                                     Wheat          “      6     12     55     75     78     81     81     13.5
                                   2. Oilseeds      “      5      9     19     24     29     28     25     5.0
                                   3. Sugarcane     “      57    122    241   345    341    274    278     4.88
                                   4. Cotton *   (m.bales)  3     6      7     23     25     23     24     8.00
                                   5. Jute &     (m.bales)  3     4      8     11     11     10     11     3.67
                                     mesta **
                                   6. Potato    (m.tonnes)  3     4     15     24    n.a     29    n.a    9.67@

                                 Source : Economic Survey, 2009-10. Note : * Cotton : million hales of : 170 kg @ for 2008-09
                                 Agricultural Statistics At a Glance, 2010 ** Jute : million hales of : 180 kg
                                 The corporate sector is actively encouraged to go for contract farming in fruits, vegetables and other
                                 crops. It is encouraged to provide seeds, fertilisers and assured marketing. At the same time, the
                                 Government is encouraging the setting up of Special Economic Zones (SEZ) by buying large tracts of
                                 a agricultural land for setting up industries and service sectors. There is considerable confusion in
                                 the agricultural sector in India.
                                 The volatile variation in crop production from year to year shows that there is very little planning in
                                 Indian agriculture. The old saying that “Indian agriculture is a gamble in the rains” holds good even
                                 today, after nearly six decades of planning. In simple terms, agricultural planning has been a failure.
                                 The data pertaining to 2007-08 reveals that renewed efforts to boost agricultural production has
                                 shown concrete results. Total foodgrains production will be of the order of 231 million tonnes – a



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