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Indian Economy




                    Notes          The only exception was food grains – the Eighth Plan target was 210 million tonnes however the
                                   real production was 199 million tonnes. In truth, the production of food grains at 199 million
                                   tonnes was the highest output recorded by India till then.
                                   The Ninth Plan (1997-2002) was not much of a success, so far as the agricultural targets were
                                   involved. For example, the Ninth Plan fixed the target of food grain production at 234 million
                                   tonnes in 2001-02, but the real production was only 211 million tonnes. The same story of under-
                                   achievement was to be observed in other sectors of agriculture also. One is again persuaded to
                                   ask the question: why should the planners fix unrealistic as well as unrealisable targets?

                                   6.2.7 Agricultural Sector under the Tenth Plan: Growth Projection in the
                                        Tenth Plan

                                   You should keep in mind that the Tenth Plan accepted the prescriptions of the National
                                   Agricultural Policy, 2000 (NAP, 2000). The Tenth Plan, particularly, stressed the following types
                                   of growth envisaged by NAP, 2000:

                                   (i)  growth that was based on effective use of resources and conservation the soil, water and
                                       bio-diversity of the country;
                                   (ii)  growth with equity that is growth which was widespread across areas and covered all
                                       farmers;
                                   (iii)  growth that was demand driven and met domestic markets as well as maximised benefits
                                       from exports of agricultural products in the face of the challenges brought about by
                                       economic liberalisation and globalisation; and
                                   (iv)  growth that was sustainable environmentally, technologically and economically.
                                   The NAP, 2000 envisioned a growth rate more than 4 per cent per annum in the agricultural
                                   sector. The Tenth Plan also aimed a 4 per cent rate of growth. Towards this motive, the Tenth
                                   Plan visualised:
                                   (a)  the estimated food grains need at the end of the Tenth Plan: 230 million tonnes.
                                   (b)  the estimated supply position is anticipated to be between 225 and 243 million tonnes.

                                   The Tenth Plan planned to acquire this volume of production of food grains via:
                                   (i)  sufficient thrust on maize cultivation which has good scope for enhancing production of
                                       minor cereals to 43 to 48 million tonnes; and
                                   (ii)  thrust on commercialisation of hybrid rice on a huge scale and enhanced technologies in
                                       wheat.

                                   Strategy and Thrust in the Tenth Pan

                                   The Tenth Plan accepted the enhancing biotic pressure on the natural resources in the country,
                                   particularly land, water and biodiversity; with the rising population, the fragmentation of
                                   holdings had increased, leading to smaller and unviable units of land holdings. The Tenth Plan
                                   focused on this problem via:
                                   (a)  simple transfers of agricultural land to facilitate farmers to augment their holdings to
                                       viable units;
                                   (b)  enable leasing and contract farming via more freedom to lease in and lease out; and
                                   (c)  developed technologies appropriate to raise productivity of small and marginal holdings
                                       which comprise 78 per cent of all holdings and function about 32 per cent of total agricultural
                                       region.




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