Indian Federal Promoting Investment In Agriculture Economics Essay

The main objectives of the Government's price policy for agricultural produce, is aimed at ensuring remunerative prices to the growers for his or her produce with a view to encourage higher investment and development. Towards the end, minimum support charges for major agricultural products are declared each year that happen to be fixed after considering, the recommendations of the Payment for Agricultural Costs and Prices (CACP). The CACP while suggesting prices takes into account all-important factors, viz.

Cost of Production

Changes in Suggestions Prices

Input/Outcome Price Parity

Trends in Market Prices

Inter-crop Price Parity

Demand and Supply Situation

Effect on Industrial Cost Structure

Effect on Basic Price Level

Effect on Cost of Living

International SELLING PRICE Situation

Parity between Prices Paid and Prices Received by farmers (Conditions of Trade).

EXIM Policy

EXIM Insurance policy is the export transfer policy of the federal government that is released every five years. Additionally it is known as the Foreign Trade Insurance policy. This policy consists of general provisions regarding exports and imports, promotional procedures, duty exemption techniques, export promotion strategies, special economic area programs and other details for different sectors. Every year the government announces a supplement to this coverage.

The EXIM Insurance plan of 2002-2007 (Exterior website that opens in a new window) emphasized the value of agricultural exports and announced methods like the setting up of agri export areas, removal of procedural restrictions and marketing cost assistance. Agri Export Areas are considered the most crucial creation of this policy -

Agri Export Zones (External website that opens in a new window)

Agri Export Zones were formed consequently of this policy. These areas are meant to promote agricultural exports from the country and offer remunerative earnings to the farming community regularly. They are to be determined by the State Government, which would progress a comprehensive bundle of services to be provided by all State Government agencies, Status Agriculture Universities and everything institutions and organizations of the Union Government for intense delivery in these areas. Corporate sector companies with proven qualifications would be inspired to sponsor new agri export zones or take over already notified agri export areas.

Services that might be been able and coordinated through this system are the provision of pre/post harvest functions, plant protection, processing, packaging, storage area and related research and development. APEDA will supplement, within its plans and provisions, the efforts of Status Governments for facilitating exports. Click here for a list of the Agri Export Areas.

After, a big change of federal government at the centre, a fresh EXIM Insurance plan of 2004 - 2009 was released. This policy came up with export promotional measures such as Cities of Export Superiority, Focus on Plus, Free Trade and Warehousing Zones and the Vishesh Krishi Upaj Yojana.

Here are details on these plans:

Towns of Export Quality - Here, towns in specific areas that produce goods of Rs. 250 crores and above in the handloom, agriculture, handicraft and fisheries sector will be notified as Towns of Exports Quality on the basis of their potential for growth in exports. They'll be granted this identification to maximize their potential, permit them to go higher in the worthiness chain and tap new markets.

Target Plus - In such a scheme, exporters who have attained a sizable increase in expansion of exports would be allowed responsibility free credit based on incremental exports considerably higher than the overall actual export target set. Rewards will be granted according to a tiered methodology. For incremental expansion of over 20, 25 and 100 per cent, the duty free credits would be 5, 10 and 15 per cent of Free up to speed (FOB) value of incremental exports.

Vishesh Krishi Gram Udyog Yojana - It is designed to promote exports of fruits, fruit and vegetables, bouquets, fruits, and other value-added products. This year it's been expanded to include soybean and coconut oil as well as food arrangements such as soups. Plus, the advantage of the system has been extended to 100 % export-oriented models.

Import and Export

Since Freedom, India has made a lot of improvement in agriculture in conditions of growth in output, yields and area under crops. It has truly gone through a Green Trend (food grains), a White Trend (dairy), a Yellow Trend (oilseeds) and a Blue Trend (aquaculture). Today, India is one of the most significant producers of dairy, fruits, cashew nuts, coconuts and tea on the planet. It is also well known for the development of wheat, vegetables, sugar, seafood, tobacco and rice.

Certain types of agriculture such as horticulture, organic farming, floriculture, genetic engineering, presentation and food handling have the potential to visit a surge in earnings through exports. Over the past few years, the federal government has stressed on the development of horticulture and floriculture by creating vital infrastructure for chilly storage, refrigerated travel, packaging, handling and quality control. If India needs to maximize the creation and export probable of these commodities, then it is vital to boost these facilities, marketing and export systems much further.

In recent years, the Central Federal government has offered different fiscal bonuses for bettering safe-keeping facilities in rural areas. It also provides financial assistance to the State Governments for acquiring and distributing food grains at subsidized rates, especially to people with total annual income below the poverty series. Today, the increased availability of bank or investment company credit through main concern lending, favourable terms of trade and liberalized domestic and external trade for agricultural commodities have also encouraged private players to invest in agriculture.

The major thrust of the insurance policies and programmes of the Government of India relating to livestock and fisheries is in the regions of rapid genetic upgradation of milch family pets, improvement in the delivery device of mating inputs, control of pet animal diseases, creation of disease free zones, increased availability of nutritious give food to, development of dairy activities and backyard chicken, development of handling and marketing facilities and advancement of development and success of livestock.

Agricultural Exports (Exterior website that opens in a new window)

Agricultural exports have shown an increase (External website that opens in a new window) from around Rs. 60 billion in 1990 - 91 to Rs. 398 billion in 2005-06. The Government's special work to encourage export of food grains lately through give of World Trade Organization (Alternative website that opens in a fresh home window) or WTO appropriate subsidies has lead to India becoming one of the leading exporters of food grains in the international market

Agricultural Imports (Exterior website that opens in a fresh window)

The imports of agricultural products (Exterior website that opens in a new window) advanced from Rs. 12 billion in 1990 - 91 to Rs. 220 billion in 2005- 06. The share of agri-imports to total goods imports in 2005-06 was 4. 59 percent. Edible engine oil is the single greatest agricultural product imported in to the country and makes up about around two-thirds of the full total agricultural imports.

NEW AGRICULTURE POLICY

Agriculture is a means of life, a custom, which, for centuries, has shaped the idea, the outlook, the culture and the economical life of the people of India. Agriculture, therefore, is and can continue being central to all or any strategies for organized socio-economic development of the country. Rapid progress of agriculture is vital not only to achieve self-reliance at countrywide level also for home food security also to bring about collateral in syndication of income and wealth resulting in rapid reduction in poverty levels.

Indian agriculture has, since Independence, made quick strides. In taking the total annual foodgrains development from 51 million tonnes in early fifties to 206 million tonnes at the move of the century, it offers contributed significantly in attaining self-sufficiency in food and to avoid food shortages.

Over 200 million Indian farmers and plantation personnel have been the backbone of India's agriculture. Despite having achieved countrywide food security the health of the farming community is still a matter of grave matter for organizers and policy producers. The establishment of the agrarian overall economy which ensures food and nutrition to India's billion people, raw materials for its widening industrial basic and surpluses for exports, and a good and equitable praise system for the farming community for the services they offer to the society, will be the mainstay of reforms in the agriculture sector.

The National Plan on Agriculture looks for to actualise the huge untapped growth potential of Indian agriculture, enhance rural infrastructure to aid faster agricultural development, promote value addition, accelerate the progress of agro business, create occupation in rural areas, secure a good quality lifestyle for the farmers and agricultural staff and their own families, discourage migration to cities and face the challenges arising out of economic liberalization and globalisation. Over another two decades, it aims to realize:

The salient features of the new agricultural plan are:

Over 4 per cent annual development rate aimed over next 2 decades. .

Greater private sector involvement through agreement farming.

Price safety for farmers.

National agricultural insurance structure to be launched.

Dismantling of constraints on movements of agricultural commodities throughout the country.

Rational utilisation of country's normal water resources for perfect use of irrigation potential.

High concern to development of canine husbandry, poultry, dairy and aquaculture.

Capital inflow and promised market segments for crop creation.

Exemption from payment of capital increases taxes on compulsory acquisition of agricultural land.

Minimise fluctuations in item prices.

Continuous monitoring of international prices.

Plant varieties to be covered by having a legislation.

Adequate and timely supply of quality inputs to farmers.

High priority to rural electrification.

Setting up of agro-processing products and creation of off-farm occupation in rural areas.

Sustainable Agriculture

The insurance policy will seek to promote technically sound, economically viable, environmentally non-degrading, and socially appropriate use of country's natural resources - land, water and genetic endowment to promote lasting development of agriculture. Measures will be taken to contain biotic stresses on land and to control indiscriminate diversion of agricultural lands for non-agricultural purposes. The unutilized wastelands will be placed to utilize for agriculture and afforestation. Particular attention will be given for increasing cropping strength through multiple-cropping and inter-cropping.

Rational utilization and conservation of the country's abundant normal water resources will be promoted. Conjunctive use of surface and ground water will acquire highest priority. Special attention will be centered on drinking water quality and the situation of receding ground-water levels using areas consequently of over-exploitation of underground aquifers. Proper on-farm management of drinking water resources for the most effective use of irrigation potential will be advertised.

Erosion and narrowing of the base of India's herb and animal genetic resources in the last few years has been affecting the food security of the country. Survey and evaluation of hereditary resources and safe conservation of both indigenous and exogenously launched genetic variability in crop plants, family pets and their outrageous relatives will receive particular attention. The use of bio-technologies will be promoted for evolving vegetation which eat less normal water, are drought immune, pest resistant, contain much more nourishment, give higher yields and are environmentally safe. Conservation of bio-resources through their former mate situ preservation in Gene Banking companies, as also in situ conservation in their natural habitats through bio-diversity parks, etc. , will receive a high priority to avoid their extinction. Specific steps will also be taken to preserve indigenous breeds facing extinction. There will be a time bound programme to list, catalogue and classify country's huge agro bio-diversity.

Sensitization of the farming community with environmentally friendly concerns will get high priority. Balanced and conjunctive use of bio-mass, organic and natural and inorganic fertilizers and handled use of agro chemicals through included nutrition and pest management (INM & IPM) will be advertised to achieve the sustainable increases in agricultural creation. A nation-wide programme for utilization of rural and urban garbage, plantation residues and organic and natural waste for organic matter repletion and pollution control will be exercised.

Agro-forestry and cultural forestry are prime requisites for maintenance of ecological balance and augmentation of bio-mass development in agricultural systems. Agro-forestry will get a major thrust for productive nutrient cycling, nitrogen fixation, organic and natural matter addition as well as for bettering drainage. Farmers will be encouraged to take up farm/agro-forestry for higher income generation by changing technology, expansion and credit support plans and taking away constraints to development of agro and plantation forestry. Participation of farmers and landless labourers will be sought in the development of pastures/forestry programmes on general population wastelands by giving financial bonuses and entitlements to the usufructs of trees and pastures.

The record and traditional knowledge of agriculture, especially of tribal neighborhoods, relating to organic and natural farming and preservation and control of food for dietary and therapeutic purposes is one of the oldest on the planet. Concerted efforts will be produced to pool, distil and assess traditional tactics, knowledge and intelligence also to harness them for lasting agricultural development.

Food and Nutritional Security

Special work will be produced to improve the production and creation of vegetation to meet up with the increasing demand for food generated by unabated demographic stresses and raw materials for broadening agro-based business. A regionally differentiated strategy will be pursued, considering the agronomic, climatic and environmental conditions to realize the full progress potential of each region. Special attention will be given to development of new crop kinds, particularly of food crops, with higher nutritional value through adoption of bio-technology especially genetic changes, while dealing with bio-safety concerns.

A major thrust will get to development of rainfed and irrigated horticulture, floriculture, root base and tubers, plantation vegetation, aromatic and medicinal crops, bee-keeping and sericulture, for augmenting food resource, exports and producing employment in rural areas. Availability of hybrid seeds and disease-free planting materials of better varieties, reinforced by a network of regional nurseries, cells culture laboratories, seed farms will be advertised to support systematic development of horticulture having emphasis on increased development, post-harvest management, detail farming, bio-control of pests and quality rules device and exports.

Animal husbandry and fisheries also make wealth and career in agriculture sector. Development of dog husbandry, chicken, dairying and aqua-culture will get a high priority in the efforts for diversifying agriculture, increasing pet protein supply in the meals basket and then for creating exportable surpluses. A countrywide livestock breeding strategy will be progressed to meet up with the requirements of dairy, meat, egg and livestock products and improve the role of draught animals as a source of energy for farming functions and transfer. Major thrust will be on genetic upgradation of indigenous/local cattle and buffaloes using proven semen and high quality pedigreed bulls and by broadening manufactured insemination network to provide services at the farmer's doorstep.

Generation and dissemination of appropriate technology in the field of animal development as also healthcare to enhance creation and production levels will be given increased attention. Cultivation of fodder vegetation and fodder trees will be urged to meet the feed and fodder requirements and to improve animal nourishment and welfare. Concern may also be given to improve the processing, marketing and transport facilities, with emphasis on modernization of abattoirs, carcass utilization and value addition thereon. Since dog disease eradication and quarantine is critical to exports, canine health system will be strengthened and disease-free areas created. The engagement of cooperatives and private sector will be motivated for development of pet husbandry, chicken and dairy. Bonuses for livestock and fisheries creation activities will be brought at par with bonuses for crop creation.

An integrated approach to sea and inland fisheries, designed to promote sustainable aquaculture procedures, will be followed. Biotechnological application in the field of genetics and mating, harmonal applications, immunology and disease control will acquire particular attention for increased aquaculture creation. Development of ecological systems for fin and shell seafood culture as also pearl-culture, their yield marketing, harvest and post-harvest functions, mechanization of fishing boats for sale, strengthening of infrastructure for creation of seafood seed, berthing and landing facilities for sportfishing vessels and development of marketing infrastructure will be accorded high goal. Deep sea angling industry will be developed to adopt benefit of the vast potential of country's exclusive economic zone.

Generation and Transfer of Technology

A very high goal will be accorded to innovating new location-specific and financially viable improved types of agricultural and horticultural plants, livestock types and aquaculture as also conservation and judicious use of germplasm and other bio-diversity resources. The regionalization of agricultural research, predicated on identified agro-climatic zones, will be accorded high priority. Software of frontier sciences like bio-technology, distant sensing technology, pre and post-harvest technology, energy saving technology, technology for environmental protection through national research system as well as proprietary research will be urged. The endeavour will be to build a well organized, useful and result-oriented agriculture research and education system to introduce technical change in Indian agriculture. Upgradation of agricultural education and its own orientation towards uniformity in education expectations, women empowerment, user-orientation, vocationalization and advertising of excellence will be the hallmark of the new plan. .

The research and extension linkages will be strengthened to improve quality and success of research and expansion system. The expansion system will be broad-based and revitalized. Progressive and decentralized institutional changes will be presented to make the extension system farmer-responsible and farmer-accountable. Role of Krishi Vigyan Kendras (KVKs), Non-Governmental Organizations (NGOs), Farmers Organizations, Cooperatives, corporate and business sector and para-technicians in agricultural expansion will be motivated for organizing demand-driven development systems. Development of recruiting through capacity building and skill upgradation of open public expansion functionaries and other extension functionaries will be accorded a high priority. The Government will endeavour to go towards a plan of financial sustainability of expansion services through effecting in a phased manner, a more realistic cost recovery of expansion services and inputs, while together safeguarding the passions of the indegent and the susceptible groups.

Mainstreaming gender concerns in agriculture will acquire particular attention. Appropriate structural, functional and institutional methods will be initiated to empower women and build their features and enhance their access to inputs, technology and other farming resources.

Inputs Management

Adequate and well-timed supply of quality inputs such as seeds, fertilizers, plant safety chemicals, bio-pesticides, agricultural equipment and credit at acceptable rates to farmers will be the endeavour of the federal government. Soil tests and quality evaluation of fertilisers and seeds will be guaranteed and offer of spurious inputs will be checked. Balanced and ideal use of fertilizers will be promoted together with use of organic and natural manures and bio-fertilizers to boost the efficiency of nutritional use.

Development, development and distribution of improved types of seed products and planting materials and conditioning and growth of seed and plant documentation system with private sector involvement will get a high priority. A Country wide Seed Grid will be set up to ensure way to obtain seed products especially to areas influenced by natural calamities. The National Seeds Firm (NSC) and Condition Farms Organization of India (SFCI) will be restructured for productive utilization of investment and manpower.

Protection to grow varieties through a sui generis legislation, will be awarded to encourage research and mating of new kinds especially in the private sector consistent with India's commitments under TRIPS Agreement. The farmers will, however, be allowed their traditional privileges to save lots of, use, exchange, share and sell their plantation saved seeds except as top quality seeds of protected types for commercial purpose. The pursuits of the research workers may also be safeguarded in carrying out research on proprietary kinds to develop new varieties.

Integrated pest management and use of biotic brokers in order to minimize the indiscriminate and injudicious use of chemical substance pesticides would be the cardinal rule covering plant safety. Selective and eco-friendly farm mechanization through appropriate technology will be promoted, with special mention of rainfed farming to lessen arduous work also to make agriculture useful and competitive as also to increase crop output.

Incentives for Agriculture

The Administration will endeavour to create a favourable economical environment for increasing capital formation and farmer's own assets by removal of distortions in the incentive regime for agriculture, bettering the terms of trade with manufacturing sectors and bringing about external and local market reforms supported by rationalization of domestic tax structure. It'll seek to bestow on the agriculture sector in as much respects as possible benefits much like those obtaining in the making sector, such as easy availability of credit and other inputs, and infrastructure facilities for development of agri-business business and development of effective delivery systems and freed motion of agro produce.

Consequent after dismantling of Quantitative Restrictions on imports according to WTO Arrangement on Agriculture, commodity-wise strategies and arrangements for protecting the grower from unfavorable impact of undue price fluctuations in world marketplaces and for promoting exports will be produced. Apart from price competition, other aspects of marketing such as quality, choice, health insurance and bio-safety will be marketed. Exports of horticultural produce and marine products will obtain particular emphasis. A two-fold long-term strategy of diversification of agricultural produce and value addition enabling the production system to respond to exterior environment and creating export demand for the commodities produced in the united states will be advanced with a view to providing the farmers incremental income from export cash flow. A favourable monetary environment and supportive open public management system will be designed for promotion of agricultural exports. Quarantine, both of exports and imports, will get particular attention so that Indian agriculture is secured from the ingress of spectacular pests and diseases.

In order to safeguard the eye of farmers in context of removal of Quantitative Restrictions, constant monitoring of international prices will be carried out and appropriate tariffs safeguard will be provided. Transfer duties on created commodities found in agriculture will be rationalized. The domestic agricultural market will be liberalized and everything controls and rules hindering upsurge in farmers' income will be assessed and abolished to ensure that agriculturists obtain prices commensurate with the efforts, investment. Constraints on the movement of agricultural goods throughout the united states will be progressively dismantled.

The framework of taxes on foodgrains and other commercial vegetation will be evaluated and rationalized. Similarly, the excise obligation on materials such as farm machinery and implements, fertilizers, etc. , used as inputs in agricultural production, post harvest storage space and handling will be analyzed. Appropriate steps will be adopted to ensure that agriculturists more often than not remain outside the regulatory and taxes collection systems. Farmers will be exempted from repayment of capital benefits tax on compulsory acquisition of agricultural land.

Investments in Agriculture

The agriculture sector has been starved of capital. There's been a drop in the general public sector investment in the agriculture sector. General population investment for narrowing local imbalances, accelerating development of supportive infrastructure for agriculture and rural development specifically rural connectivity will be stepped up. A time-bound technique for rationalisation and translucent costs of inputs will be produced to encourage judicious type use and also to create resources for agriculture. Type subsidy reforms will be pursued as a combination of price and institutional reforms to cut down costs of the inputs for agriculture. Source of information allocation regime will be examined with a view to rechannelizing the available resources from support methods towards assets creation in rural sector.

A conducive climate will be created via a favourable price and trade plan to promote farmers' own purchases as also assets by business producing inputs for agriculture and agro-based establishments. Private sector opportunities in agriculture may also be encouraged more especially in areas like agricultural research, human being source development, post-harvest management and marketing.

Rural electrification will be given a high concern as the primary mover for agricultural development. The quality and option of electricity source will be better and the demand of the agriculture sector will be attained adequately in a trusted and affordable manner. The usage of new and green resources of energy for irrigation and other agricultural purposes may also be encouraged.

Bridging the space between irrigation potential created and employed, completion of most on-going projects, recovery and modernization of irrigation infrastructure including drainage, evolving and implementing a built-in plan of enhancement and management of nationwide normal water resources will receive special attention for augmenting the availableness and use of irrigation normal water.

Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage and travelling with a view to lowering post-harvest deficits and ensuring a much better go back to the grower. The regular periodic markets under the direct control of Panchayat Raj institutions will be improved and strengthened. Direct marketing and pledge funding will be promoted. Producers market segments on the lines of Ryatu Bazars will be motivated throughout the width and breadth of the country. Storage facilities for different kinds of agricultural products will be created in the development areas or local places particularly in the rural areas so the farmers can travel their produce to these places immediately after harvest in shortest possible time. The establishment of frigid chains, provision of pre-cooling facilities to farmers as a service and cold safe-keeping in the terminal market segments and enhancing the retail marketing agreements in cities, will get main concern. Upgradation and dissemination of market cleverness will receive particular attention.

Setting up of agro-processing devices in the producing areas to reduce wastage, especially of horticultural produce, increased value addition and creation of off-farm work in rural areas will be inspired. Collaboration between the producer cooperatives and the organization sector will be prompted to promote agro-processing industry. An interactive coupling between technology, overall economy, environment and society will be marketed for quick development of food and agro-processing market sectors and accumulating a substantial platform for production of value added agro-products for home and export markets with a solid emphasis on food security and quality. THE TINY Farmers Agro Business Consortium (SFAC) will be energized to cater to the needs of farmer enterprisers and promote open public and private purchases in agri-business.

Institutional Structure

Indian agriculture is characterized by pre-dominance of small and marginal farmers. Institutional reforms will be so pursued concerning channelize their energies for obtaining greater efficiency and production. The approach to rural development and land reforms will give attention to the next areas:

Consolidation of holdings from coast to coast on the structure of north-western States;

Redistribution of roof surplus lands and waste material lands on the list of landless farmers, unemployed children with preliminary start-up capital;

Tenancy reforms to recognize the privileges of the tenants and share croppers;

Development of lease marketplaces for increasing the size of holdings by making legal provisions for presenting private lands on rent for cultivation and agri-business;

Updating and improvement of land data, computerization and problem of land pass-books to the farmers, and

Recognition of women's protection under the law in land.

The rural poor will be more and more involved in the execution of land reforms by making use of Panchayati Raj Establishments, Voluntary Groups, Social Activists and Community Leaders.

Private sector participation will be marketed through contract farming and land renting arrangements to permit accelerated technology copy, capital inflow and reassured marketplaces for crop development, especially of oilseeds, cotton and horticultural vegetation.

Progressive institutionalization of rural and plantation credit will be persisted for providing well-timed and enough credit to farmers. The rural credit institutions will be targeted at promote savings, investments and risk management. Particular attention will be paid to removal of distortions in the goal sector financing by commercial banking institutions for agriculture and rural sectors. Special methods will be taken for revamping of cooperatives to remove institutional and financial weaknesses and innovating simplified procedure for sanction and disbursement of agriculture credit. The endeavour will be to ensure distribution collateral in the disbursement of credit. Micro-credit will be advertised as an efficient tool for alleviating poverty. Do it yourself Help Group - Loan company linkage system, suited to Indian rural sector, will be developed as a supplementary system for providing the rural poor into the formal bank operating system, thereby improving lenders outreach and the credit moves to the poor in a highly effective and sustainable manner.

The basic support to agriculture has been provided by cooperative sector assiduously built over time. The Government provides energetic support for advertising of cooperative-form of organization and ensure greater autonomy and operational flexibility to them to improve their functioning. The thrust will be on:

Structural reforms for promoting better efficiency and viability by freeing them from high bureaucratic control and political interference;

Creation of infrastructure and human being source development;

Improvement in financial viability and organizational sustainability of cooperatives;

Democratisation of management and increased professionalism and reliability in their businesses, and

Creating a feasible inter-face with other grass-root Organizations.

The Legislative and regulatory framework will be properly amended and strengthened to achieve these aims.

Risk Management

Despite scientific and economic breakthroughs, the health of farmers continues to be unstable credited to natural calamities and price fluctuations. National Agriculture Insurance Program covering all farmers and all crops throughout the united states with built-in provisions for insulating farmers from financial distress caused by natural disasters and making agriculture fiscally viable will be produced more farmer-specific and effective. Endeavour will be produced to provide a package insurance policy for farmers, from sowing of plants to post-harvest operations, including market fluctuations in the prices of agricultural produce.

In order to lessen risk in and impart better resilience to Indian agriculture against droughts and floods, initiatives will be made for achieving better flood-proofing of overflow prone agriculture and drought-proofing of rainfed agriculture for safeguarding farmers from vagaries of aspect. For this purpose, contingency agriculture planning, development of drought and flood resistant crop types, watershed development programmes, drought vulnerable areas and desert development programs and rural infrastructure development programmes, will receive particular attention.

The Central Federal government will continue to discharge its responsibility to ensure remunerative prices for agricultural produce through announcement of Minimum amount Support Prices policy for major agricultural commodities. The food, diet and other home and exports requirements of the united states will be placed because while identifying the support prices of different goods. The price framework and trade mechanism will be constantly evaluated to ensure a favourable economical environment for the agriculture sector and also to result in an equitable balance between rural and urban incomes. The methodology employed by the Payment on Agricultural Costs and Prices (CACP) in coming to quotes of cost of production will be periodically reviewed. The purchase price framework of both inputs and outputs will be checked to ensure higher dividends to the farmers and result in cost performance throughout the market. Domestic market prices will be strongly monitored to prevent problems sales by farmers. Open public and cooperative agencies undertaking marketing procedures, will be strengthened.

The Government will expand the coverage of futures marketplaces to minimize the large fluctuations in item prices as also for hedging their dangers. The endeavour is to cover all important agricultural products under futures trading in span of time.

Management Reforms

Effective implementation of insurance policy initiatives will demand extensive reforms in the management of agriculture by Central and Status Governments. Central Federal will supplement/complement their state Governments' through regionally differentiated Work Ideas, comprising crop/area/focus on group initiatives specific interventions, developed in an inter-active mode and integrated in a heart of collaboration with States. Central Administration will move away from schematic approach to Macro-Management mode and assume a job of advocacy, articulation and facilitation to help States in their initiatives towards obtaining accelerated agricultural development.

The Federal will concentrate on quality aspects by any means stages of plantation operations from sowing to primary processing. The grade of inputs and other support services to farmers will be upgraded. Quality consciousness amongst farmers and agro-processors will be created. Grading and standardization of agricultural products will be marketed for export augmentation. Application of science and technology in agriculture will be advertised through a normal system of interface between S&T establishments and users/potential users, to help make the sector globally competitive.

The databases for agriculture sector will be strengthened to ensure better reliability of estimations and forecasting which will help along the way of planning and coverage making. Initiatives will be made to significantly improve and harness latest distant sensing and it to fully capture data, collate it, add value and disseminate it to appropriate destinations for managing the risk and in accelerating the growth process. The objective is to take part in a meaningful ongoing dialogue with the exterior environment in the changing circumstance and to have on-line and real time system of 'Agriculture on-line' capacity to analyze signs emanating from the farms and market segments for the advantage of farmers.

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