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Page 1: Technical Cooperation between FAO and India · agricultural investment, agribusiness, food safety and consumer protection, natural resource management notably water, and climate change.
Page 2: Technical Cooperation between FAO and India · agricultural investment, agribusiness, food safety and consumer protection, natural resource management notably water, and climate change.

White Paper �

Technical Cooperation between FAO and India

A White Paper to Guide the Writing of the National Medium Term Priority Framework for

FAO and the Government of India

March 2009

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ii White Paper

This white paper has been prepared to support consultations on the content and structure of the FAO National Medium Term Priority Framework for India. It is intended to be an authoritative report on the issues facing food and agriculture in India and on the capacity of FAO to partner with India in addressing priorities identified by India. The first draft of this white paper was prepared by Ramesh Chand ([email protected]) under contract to FAO in India. The draft was reviewed by FAO India and subsequently revised. Further revisions were made following consultation within India and FAO.

The material presented in the paper is drawn from official documents of the Government of India, extensive consultation on sector papers prepared by a team of consultants to FAO in India and research and other publications. Input to Chapters 3 and 4 was obtained from the technical divisions of FAO through a request to identify their areas of work in which they had comparative advantage in India; the chapters also benefited from the Debriefing Report of the Evaluation of FAO Cooperation with India in the period 2003-2008 and takes into consideration views of stakeholders consulted in the process. Chapter 1 was contributed by Gavin Wall, FAO Representative in India and Bhutan.

The designations employed and the presentation of material in this report do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal or development status of any country, territory, city or area of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned.

ISSN 2075 8200

All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders.Application for such permission should be addressed to:Chief, Publishing Management ServiceInformation DivisionFAOViale delle Terme di Caracalla, 00100 Rome, Italyor e-mail to: [email protected]

© FAO 2009

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CONTENTS

Abbreviations and Acronyms iv

1. The need for a new relationship between India and FAO 1

2. Current challenges in India’s Agriculture 5

3. The comparative advantage of FAO in India 28

4. Mapping the priorities of India to the capacities of FAO 33

5. Concluding remarks 38

Annex 1: The list of sector papers 42References 43Glossary 44

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Abbreviations and Acronyms

AEZ Agri Export ZonesAPEDA Agriculture and Processed Food Export Development Authority APFAMGS Andhra Pradesh Farmer Managed Groundwater System ProjectAPMRA Agricultural Produce Market Regulation ActAPWAM Andhra Pradesh Water Management Project CSOs Civil Society OrganizationsFAO Food and Agriculture OrganizationGDP Gross Domestic ProductGMOs Genetically Modified OrganismsGoI Government of IndiaHQ FAO Head QuarterICTs Information and Communication TechnologiesILO International Labour Organization IPM Integrated Pest ManagementMASSCOTTE Mapping System and Services for Canal Operation TechniquesMDG Millennium Development GoalsMPEDA Marine Products Export Development Authority MSP Minimum Support PricesNABARD National Bank for Agriculture and Rural Development NATP National Agricultural Technology ProjectNDDB National Dairy Development BoardNFDB National Fisheries Development BoardNGO Non-Government OrganizationNMTPF National Medium Term Priority FrameworkNPK Nitrogen Phosphorus & PotashNRAA National Rainfed Area AuthorityNSSO National Sample Survey OrganisationRAP FAO Regional Office for Asia PacificR&D Research & DevelopmentSAARC South Asian Association for Regional CooperationSAUs State Agricultural UniversitiesSDoA State Department of AgricultureSPS Sanitary and Phytosanitary UN United NationsUNCTAD United Nations Conference on Trade and DevelopmentUNDP United Nations Development ProgrammeUNIDO United Nations Industrial Development OrganizationWHO World Health OrganizationWTO World Trade Organization

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1. TheNeedforaNewRelationshipbetween IndiaandFAO

FAO and Global Food and Agriculture a

1.1 Agricultureisfacingprofoundchangesthroughouttheworld.Someofthesechangeslikeclimatechange,risingstressonthenaturalresourcebase,outbreaksofnewstrainsofpestsareseenaschallengeswhilesomechangeslikenewtypesoftechnologies,changingdemandpatterns,upcomingvaluechainsandsupermarkets,revolutionincommunicationtechnology,institutionalinnovationsandglobalizationareconsideredasopportunitiesnotwitnessedinthepast.ThesechangesnecessitatethatmultilateralagencieslikeFAOreorienttheiractivitiesinvariouscountriestohelpdomesticinstitutionsandagenciesadjustsmoothlytoupcomingneweventsandunfoldingnewrealitytoimprovefoodandnutritionsecurityandtoachieveotherrelatedgoals.

1.2 OverthepastquartercenturyFAOhasbeenchallengedtorespondtoeverincreasingchangesinthecontextinwhichitworksandtoanarrayofnewdemands.TheoriginalpurposeofFAOwasessentiallytoraiselevelsofnutritionand

standardsoflivingprincipallybyworkingwithgovernmentstoincreaseglobalfoodproductionanditwasforallpracticalpurposestheonlyorganizationofitskind.Now,FAOworkextendswellbeyondfoodproductiontoincludeconcernsaboutthequalityofthatfoodintermsofaccesstoandconsumptionoffood,internationalcodesandstandards,intellectualproperty,poverty,genderequity,environmentsustainability,ruraldevelopment,agriculturalinvestment,agribusiness,foodsafetyandconsumerprotection,naturalresourcemanagementnotablywater,andclimatechange.Moreover,FAOnowoperatesinacrowdedfield.AnumberofotherUNagenciescompetetocontributetoagriculturaldevelopment;thenumber,sizeandimpactofNGOsworkinginagriculture,foodsecurity,ruraldevelopment,andnaturalresourcemanagementhasgrowndramatically;and,theprivatesectorhasbecomeamajordriverofchangeintheglobalfoodandagriculturalsystemsb.InaccordancewiththeParisDeclarationonAidEffectiveness(2005)andAccraAgendaforAction(2008),FAOiscommittedtoworkingtogetherwithotherUNagenciesanddevelopment

a Theterm“agriculture”anditsderivativesincludefisheries,marineproducts,forestryandprimaryforestryproducts.

b The analysis of FAO has been drawn from the Report of the Independent External Evaluation of FAO.C2007/7A.1October2007.Availableatftp://ftp.fao.org/docrep/fao/meeting/012/k0827e02.pdf

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partners,NGOsandtheprivatesectortoincreasesynergiesandbuildpartnershipstoacceleratetheattainmentoftheMillenniumDevelopmentGoalsandmembercountriesdevelopmentgoals.

1.3 Thesechangesreflectthecomplexityoftheglobalfoodandagriculturalsystem,animprovedunderstandingofthemultiplefacetsofdevelopment,andthethreatstothenaturalresourceandeconomicbasesonwhichthesystemrelies.Althoughmuchhaschanged;poverty,hungerandmalnutritionremainadailyrealityforsomeonebillionpeoplewhopredominantlyliveinruralareasandarereliantinsomewayonagriculture.Eveninthecaseofcountriesenjoyingstrongeconomicgrowth(suchasIndia),theruralareascontinuetobezonesofstagnationanddeprivation.Thecompoundingeffectsoftherecentfoodpricecrisisandthecurrenteconomiccrisishaveunderscoredthefragilityoftheglobalfoodandagriculturalsystemandthedangerthatthisrepresentsforthelowincomehouseholdsoftheworld.

1.4 Thereisaseriousmisconception,insomequarters,astothecapacityandresourcesofFAO;thishascreatedexpectationsthataresometimesunrealisticandhascloudedthinkingabouttheresourceneedsofFAO.WithacorebudgetoflessthanUS$400millionperannum,theresourcesofFAOareverymodestinrelationtothebreadthofitsmandateanditsglobalresponsibility.

1.5 TheforegoinganalysispointstothecriticalneedforFAOtomakestrategicchoicestoprioritizeareasofworkinwhichithascomparativeadvantageinrelationtootherplayers.ThisappliesequallytoFAOinIndiaasitdoestotheOrganizationasawhole.

Food and Agriculture in India

1.6 ThefoodandagriculturesystemofIndiaiscomplex,notonlybecauseIndiaismorelikeacontinentthanasinglecountry(thereare14distinctagro-climaticzones);butalsobecausefoodandagricultureare‘statesubjects’.Despitetheinherentdifficultiesofthescaleofthecountryanditsproblems,Indiahasachievednotablesuccesses.FoodgrainproductionhasmorethanquadrupledsinceIndependenceandthegreenrevolution,whilethewhiterevolutionbroughtaboutthesupplyofgoodqualitymilktocitiesfromthousandsofsmallscaleruralmilkproducersthroughtheirowncooperatives.Thesearecelebratedsuccessstoriesofdevelopment.

1.7 InthepasttwodecadesIndiahasmadeimpressiveprogressinanumberofeconomicsectorsandhasattainedanewlevelofglobalstature.Althoughthesechangesareimpressive,thereisacontradictionbetweenthebenefitsofdynamicprogressforsomeandthehardshipfacedbyothers.Afterregisteringimpressivegainsinreducinghungerbetween1990–92andthemid-1990s,progresshasstalledsinceabout

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1995–97.ThehighproportionoftheundernourishedinIndiacombinedwithahighpopulationgrowthratemeansthatIndiahashadachallengingtaskinreducingthenumberofundernourished.TheincreaseinthenumberoftheundernourishedinIndiacanbetracedtoaslowinginthegrowthinpercapitadietaryenergysupplyforhumanconsumptionsince1995–97.Onthedemandside,lifeexpectancyinIndiahasincreasedfrom59to63yearssince1990–92.Thishashadanimportantimpactontheoverallchangeinthepopulationstructure,withtheresultthatin2003-05thegrowthinminimumdietaryenergyrequirementshadoutpacedthatofdietaryenergysupply9.

1.8 Commercialagricultureisgrowing,albeitfromasmallbase.Therearehighexpectations,insomequarters,forIndiatosignificantlyincreaseproductionandexportofhighvaluefoodandagriculturalproducts.However,progresstowardsmodernfoodvaluechainstoachievethoseexpectationsisquiteslow.

1.9 Long-terminvestmentineducationandagriculturalresearchandagrowingcorporatesectorhasproducedacadreofindividualshavingahighdegreeoftechnicalcompetence.Theseindividualsarewellconnectedtopeersaroundtheworldandarebyandlargefullyconversantwiththeprinciplesofbestpracticesandcurrentglobaltrends.However,progressintheagriculturalandrelatedsectorshas

beenhamperedbyinadequatedeliveryofpublicservicesandamyriadofrestrictions,subsidies,governanceissues,andunder-investmentininfrastructureandpostfarmvalueaddition.ThedynamismoftheNGOandtheprivatesectorsisinstarkcontrasttothecommonperceptionofpublicservices.Centrallysponsoredgovernmentschemesseektoaddressgrowthandinclusion,butsystematicimprovementsingovernanceandimplementationareneededtoobtainthedesiredresultsfromthisspending.

FAO and India

1.10 ThepastmodelsoftechnicalcooperationbetweenFAOandIndiaincapacitybuildingandmultilateralinteractiondeservetoberevisitedinlightofthechangesintheglobalfoodandagriculturesystemandthechangedcircumstancesofFAOandIndia.FAOmustconsiderbecomingmoreofafacilitatororknowledgemanagertoassistinformeddecisionmakingwheretheneutralityofFAOgivesitanabsolutecomparativeadvantage.ItisalsotimetoacknowledgethatIndiaisnolongeranobviousrecipientofdevelopmentassistanceandthatthelimitedresourcesofFAOmustbecomplementedbyinvestmentsfromwithinIndia.Suchinvestmentsmustbecarefullytargetedtoensurethatthedesiredbenefitsaccrue.Neither,IndianorFAOcanaffordalaissezfaireapproachtodeterminingfuturecollaborativeeffort.

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1.11 TheNMTPFatthecountrylevelwillthereforebeinstrumentalto:(a)theformationofpartnershipswiththedevelopmentstakeholderstoensuregreatereffectivenessinpursuingMDGgoals;(b)betterfocusonthedevelopment

prioritiestakingintoaccountFAOstrengthandcomparativeadvantagesand(c)directresourcestothoseidentifiedprioritiesofthecountrythatarecatalyticandabletoattractadditionalresourcesfrommultiplepartnersorleadtojointcollaboration.

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2 CurrentChallengesinIndia’sAgriculture

2.1 AgricultureisasourceoflivelihoodforthemajorityofpeopleofIndiaanditservesfoodsecurityneedsofavastpopulation.Agriculturehasspecialsignificanceforlowincome,poorandvulnerablesectionsofsociety.ThesesimplefactsplaceagricultureatthecoreofeconomicdevelopmentandsocialprogressofIndiansociety.DuringthelastoneandahalfdecadesseveralchallengeshavesurfacedinIndianagricultureandthesearebecomingmoreandmoresignificantwiththepassageoftime.ThereisadangerthattheIndianeconomymaynotbeabletosustainthecurrenthighgrowthrateandmeettheaspirationsofitslargepopulationifperformanceofagriculturesectordoesnotimproveandthechallengesconfrontingthissectorarenotaddressed.

Major Challenges

2.2 ThemajorchallengesfacingIndianagriculturecanbegroupedinsixcategoriesrelatingto(a)growth(b)sustainability(c)efficiency(d)equity(e)quality,and(f )stability.Therearealsootherimportantconcernslikefoodandnutritionsecurity,livelihoods,employment,genderissues,improvementinstandardoflivingofruralpopulationandtheurbanpoorbutmostofthesearesubsumedintheabovesixcategories.Addressingthesechallenges

requireseffortsonseveralfrontssuchasanincentivestructure,infrastructure,technology,marketdevelopment,extension,regulations,inputsupply,tenancyandanenablingpolicyenvironment.

Slowdown in Growth

2.3 Adoptionofgreenrevolutiontechnology,whichstartedduringlate1960s,ledtoasignificantimprovementintheperformanceoftheagriculturesector.ThegrowthrateofGDPincreasedfromaround1percentduringthedecadepreceding1967-68tocloseto3percentduringthedecadeafter1967-68.Therewassomereductioningrowthduringlate1970sbutIndia’sagriculturequicklyrecoveredafter1980-81.Eachyearduringthe1980s,agriculturemovedtoahighergrowthtrajectory.Thesegrowthratesbasedonasemi-logtrendfittedto10yearsdataarepresentedinFig2.1andFig.2.2.Thelattergrowthratesarebasedondataseriesexcludingyear1979-80,1987-88and2003-04whichwereseveredroughtyearsandwhichcoulddistortestimatesoftrendgrowthrates.Agriculturalgrowth,basedonthetrendbetweenmid1980sandmid1990s,peakedatalevelof3.7percentandstarteddeceleratingafterthat.Therewasasharpslowdownbetweenmid1990sandmiddleofthefirstdecadeofthe21stcentury.

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2.4 Theoutputofthelivestockandfisherysectorsgrewatamuchhigherratecomparedtothecropsector;however,theslowdowningrowthratesisobservedacrosstheboard.

2.5 Pulses,whichusedtobetheprincipalsourceofproteinforIndia’svegetariandiet,facethemostseriouschallengeinraisingproduction.Sincetheonsetofthegreenrevolution,percapitaavailabilityofpulsesinthecountryhas

FIGURE �.�: Trend growth rate in GDP agriculture based on �0 years period starting from �9�7-�8 and ending with �007-08

Source:ComputedfromGDPdatatakenfromNationalAccountsStatistics,CentralStatisticalOrganisation,GoI,NewDelhi.

c Asthesefactorsturnedouttobefavourableafter2004-05,agriculturehasrespondedinabigwayandgrowthrateinGDPagricultureduring2004-05to2007-08hasturnedouttobe4.6�.

steadilydeclinedfrom60gram/person/daytoaround30gram/person/dayinrecentyears.

2.6 Themainfactorsresponsiblefortheslowdowninagriculturegrowthduringmid1990sto2004-05werethecumulativeeffectofdecliningpublicinvestmentinagriculture,adeclineinpowersupplytothesector,aslowdowninfertilizeruseandirrigation,andadeteriorationintermsoftradeforagriculturec,�, ��.

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Natural Resources

2.7 Landresourcesaredegradingandfertileagriculturallandisbeingdivertedtomeetthegrowingneedsofindustrialization,urbanizationandinfrastructure.NearlytwothirdsofIndia’sagriculturallandisreportedtobedegradedor‘sick’tosomeextentandonlyaboutonethirdisingoodhealth��.MostpartsofIndiaareoverexploitingtheirwaterresourcesandpossibilitiesforfurtherexpansionofirrigationarelimited.Falling

groundwaterlevelsinseveralstatesprovidesevidenceofresourcedepletion.Thewatertablehasfallenmorethan4meterssince1980in264districtsincludingthegroundwaterrichIndo-Gangeticplains.Similarly,waterflowinrivers,canalsandwaterstreamsisdecliningyearafteryear.Theoptionsbeingconsideredinsuchplacesaretocontainratherthantoincreasewaterextraction.However,theoverallchallengebeforethecountryistoproducemoreoutputfromlesswaterandlessland.

FIGURE �.�: Trend growth rate in GDP agriculture based on �0 years period starting from �9�7-�8 and ending with �007-08 excluding three drought years

Source:ComputedfromGDPdatatakenfromNationalAccountsStatistics,CentralStatisticalOrganisation,GoI,NewDelhi.

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2.8 Likesoilandwater,biodiversityandforestsareundersevereanthropogenicpressure.Monoculturesandgeneticuniformityofcroppingsystemsmakeagriculturehighlyvulnerabletopest,pathogenandweathershocks.Climatechangeisanticipatedtobeanadditionalaggravatingstressonnaturalresources.Moreover,uncertaintyaboutthenatureoftheimpactsofclimatechangedoesnotlendclaritytothedevelopmentofacopingstrategy.

Efficiency and Competitiveness

2.9 EfficiencywasnotaseriousissueinIndianagricultureuntilrecently.Withascarcityoffoodinthecountry,policiesemphasizedanincreaseinproduction,mainlycereals,withoutanemphasisonincreasingdietarydiversityoronreducingtheaveragecostofproduction.Further,theagriculturesectorwasbyandlargeinsulatedfromcompetitionfromabroadthroughstrictimportregulations.Witheconomicliberalization,theissueofefficiencyhasbecomehighlyrelevantasdomesticproductionnowhastocompetewithproductsfromothercountries.Majorreasonsforthisarefoundtobelowproductivity,poormarketing,underdevelopedpostharvestinfrastructureandexcessiveregulation��, ��, �7.Indiafacesaplethoraofinterventionsinagriculturalmarketswhichstiflescompetition,discouragesprivateinvestmentsinmarketing,androbsthesystemoftheabilitytoharnessbenefitsofscaleeconomies.Inseveralcases,

poorcompetitivenessoffarmproductsisduetoinefficienciesinmarketingratherthanproduction�.Thus,thereisamajorchallengetointegratefarmlevelproductionwithdifferentstagesofmarketandprocessing.

Equity and Agrarian Distress

2.10 Equityhasseveraldimensions.Thesecouldbeintersectoral,interregionalandintrasectoral.Intersectoralinequityisindicatedbydisparitybetweenperworkerearningsinagricultureandnon-agriculturesectors.Sincelate1990s,GDPinnon-agriculturesectorshasexperiencedagrowthrateofmorethan8percentcomparedwith2.6percentgrowthrateintheagriculturesector.Further,whileagriculturalgrowthdeceleratedafterthemid1990s,thenon-agricultureeconomyexperiencedacceleratedgrowth(Table2.1).Thishasresultedinastructuralchangeinthecompositionofoutputastheshareofagriculture(includingalliedsectorslikeforestryandfishery)intotalGDPdeclinedfromclosetoonethirdtoonefifth.However,thechangeinstructuralcompositionofoutputdidnotresultinacommensuratechangeinthestructureofemployment.TheshareoftheworkforceengagedinagricultureshowedmuchlessofareductioncomparedtothereductionintheshareofagricultureinGDPthataccompaniedthefastgrowthofthenon-agriculturesector.Thishascreatedveryseriousdisparitiesbetweenperworkerincomeinagricultureandnon-agriculturesectors(Fig.2.3).Thecombinationofthese

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twofactors,i.e.slowgrowthinperworkerincomeinagricultureandwideninggulfbetweenincomeofthosewhoworkinagricultureandthosewhoworkinnon-agriculturesectorshasthepotentialtobe

asourceofsocialtension.Recognizingthisfact,theApproachPapertotheEleventhFiveYearPlanemphasizedashiftinfocusfromgrowthtoinclusivegrowth��.

2.11 ThesecondimportantdimensionofinequityinIndiaisspatial.Cropproductivityatthedistrictlevelfortheyears2004-05and2005-06,showedalowofRs2908perhectaretoRs98

146perhectare.Estimatesatstatelevelshowawidevariationinagriculturalproductivityacrossstates(Fig.2.4).Thisvariationhasshownanincreaseover

TABLE �.�: Growth rate of agriculture and non-agriculture GDP and structural changes in Indian economyParticular Agriculture and

allied sectorsNon- agriculture Total economy

Growth rate at �999-00 prices1988-89to1997-98 3.03 6.58 5.52

1998-99to2007-08 2.60 8.31 7.05

Share in GDP (%)1987-88 32.81 67.19 100

1999-00 24.90 75.10 100

2004-05 20.43 79.57 100

Share in workforce (%)1987-88 60.17 39.83 100

1999-00 56.60 43.40 100

2004-05 52.10 47.90 100

GDP/Worker Rs at �999-00 prices1987-88 16840 52094 30881

1999-00 19897 78276 45233

2004-05 21735 92054 55418

SourceandNotes:1. GDPdatafromCentralStatisticalOrganisation,GOI,NewDelhi2. Totalnumberofworkersforspecificyearsprojectedbyusingpopulationcensusandthendivided betweenagricultureandnon-agricultureusingsectoralsharederivedfromNSSOdata.

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FIGURE �.�: Per worker GDP in agriculture and non-agriculture sectors, Rupees at �999-00 prices

Source:Table2.1.

FIGURE �.�: Value of crop output Rs / hectare of net sown area during triennium ending �00�-0� in different States of India

Source:SameasinTable2.1and2.2.

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timed.Themainreasonsforsuchlargevariationsinproductivityarevariationsinirrigation,fertilizeruse,technology,anddiversificationtowardshighvaluecrops.InformationonsomeofthefactorsispresentedinTable2.2.Fertilizeruseacrossstatesvariesfromaslowas2kgtoashighas368kgperhectareofnetsownarea.Similarly,irrigationavailabilityinvariousstatesvariesfrom5percentto97percentofnetcultivatedarea.

2.12 TheagriculturesectorinIndiaisalsocharacterizedbyintrasectordisparitiesrelatedtoownershipoflandholdingsandotherproductiveassetsandproductivityandincomefromdifferenttypesofagriculture.Morethan62percentoffarmersinthebottomoffarmsizecategories,officiallycategorizedasmarginal,operateonanaveragelandholdingof0.4hectareandtheycultivateonly18.2percentofnetsownareaofthecountry.Ontheotherhand,6.5percentfarmersinthetopfarmsizecategoriesoperateonanaveragefarmsizeof7.6hectareandcultivate36percentofnetsownareaofIndia.Thefarmersinlowfarmsizecategoriesfacealargenumberofconstraintslikelowavailabilityofinstitutionalcreditandscaledisadvantageininputandoutputmarketing.Themarketingdisadvantageisparticularlysevereforhighvalueandperishablecrops�.Anotherareaofconcernisthatalthough

d Coefficientofvariationincropproductivityacrossstatesincreasedduringtrienniumendingwith1990-91toTE2004-05.

TABLE �.�: Inter State variations in fertilizer use and irrigation, �00�-0�

States / India NPK (Kg/ha)

Area under irrigation (%)

AndhraPradesh 192 40Assam 60 5Bihar 128 59Gujarat 116 37Haryana 298 85HimachalPradesh 85 19Jammu&Kashmir 100 41Karnataka 123 26Kerala 94 15MadhyaPradesh 71 31Maharashtra 99 17Orissa 62 31Punjab 368 97Rajasthan 46 34TamilNadu 187 52UttarPradesh 198 72WestBengal 235 52Chattisgarh 76 23Jharkhand 70 10Uttarakhand 147 43ArunachalPradesh 5 16Manipur 86 23Meghalaya 19 28Mizoram 15 19Nagaland 2 28Sikkim 6 12Tripura 48 16All India ��0 ��

Source:AgriculturalStatisticsataGlance2008,MinistryofAgriculture,GovernmentofIndia,NewDelhi.

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theagriculturallabourersmakesignificantcontributioninagriculture,44.1percentagriculturelabourhouseholdslivedunderpovertyduring2004-05,accountingfor41percentoftotalpoorinruralareas(NSSO2004-05).

2.13 Thereiswidevariationincropsgrownindifferentpartsofthecountryandinsomecasesbydifferenttypesoffarmers.Thisresultsinvariationinproductivityandincomebecausethevalueofoutputsfromvariouscropsdiffersgreatly(Table2.3).Atcountrylevel,onehectareareaundercoarsecerealsgaveoutputworthRs7107whilefinecerealsyieldoutputofmorethanRs18000.FruitsandvegetablesareatthetopwithperhectareoutputofRs135000.Thusfarmersandregionswithahighershareofareaundercoarsecerealsandpulsesgetverylowoutputandthosehavinghighershareofareaunderhorticulturecropsgetmuchhigheroutput.

2.14 Anothertrendistheincreaseddistressduetomigrationofruralpeopletourbanareasandrisingfemaleworkersinruralareas(Table2.4).Thishasincreasedtheworkloadofwomenwhoareoftenleftbehindtotakecareoffamilyandagriculturaloperations.Thusincreasedfeminizationofagricultureandvariousothersocio-economicreasonsposeagrowingchallengeofaddressinggenderequity.Womeneconstitute40percentof

agriculturalworkforceandthispercentageisrising.Also75percentofallfemaleworkersand85percentofallruralfemaleworkersareengagedinagriculture7.Thecriticalaspectisthatmostofthesefemaleagriculturalworkersarelandless,leadingtofeminizationofpovertyaswell.TheEleventhFiveYearPlanalsorecognizessomeurgentinitiativetoensurewomen’srightstolandandinfrastructuresupport,accesstocreditandmarkets,inclusivityandparticipation.

TABLE �.�: Productivity of different crop groups (Rs / hectare)Crop group �00�-0�1.Cereals 15042

a.Rice/Paddy 18509

b.Wheat 18037

c.Coarsecereals 7107

2.Pulses 9818

3.Oilseeds 16891

4.Sugarcane 45945

5.Cotton 20438

6.Horticulture 114883

a.Condiments&spices 50540

b.Fruits&Vegetables 135876

7.AllCrops 26011

Source:1.AgriculturalStatisticsataGlance2008,MinistryofAgriculture,GovtofIndia,NewDelhi.2.VariousissuesofNationalAccountsStatistics,CentralStatisticalOrganisation,Govt.ofIndia,NewDelhi.

e Women in agriculture refer not only to women agriculture labourers and farmers but also to womenworkinginthevarioussubsectorsofagricultureandalliednon-farmwork.

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TABLE �.�: Number of workers by usual status and annual growth during �98� to �00�Type of workers

Employment (millions) Annual growth rate (percent)

1983 1993-94 1999-2000

2004-05 1983to1993-94

1993-94to2004-05

1993-94to1999-00

1999-00to2004-05

Rural Male 153.9 187.8 196.7 219.0 1.91 1.41 0.78 2.17

Female 90.6 104.7 104.0 124.0 1.39 1.55 -0.11 3.58

Total 244.4 292.5 300.7 343.1 1.72 1.46 0.47 2.67

Urban Male 47.2 64.6 77.0 90.4 3.04 3.10 2.98 3.25

Female 12.2 17.2 19.0 24.0 3.36 3.08 1.65 4.82

Total 59.4 81.8 96.0 114.4 3.10 3.10 2.70 3.57

Total Male 201.1 252.4 273.8 309.4 2.19 1.87 1.37 2.48

Female 102.7 121.9 123.0 148.0 1.64 1.78 0.15 3.78

Total 303.8 374.3 396.7 457.5 2.01 1.84 0.98 2.89

Source:Growthofemployment(1993-94to2004-05);IllusionorInclusiveness?byJUnniandGRaveendran,EPW,Vol.XLIINo.3,January20-26,2007.DraftNationalPolicyforWomeninAgriculture,April2008;NationalCommissionforWomen.

Stability and Vulnerability

2.15 AgriculturalproductionandfarmincomesinIndiaarefrequentlyaffectedbynaturaldisasterssuchasdroughts,floods,cyclones,storms,landslidesandearthquakes.Thevulnerabilityofagricultureproductiontothesedisastersiscompoundedbytheoutbreakofepidemicsandman-madedisasterssuchasfire,saleofspuriousseeds,fertilizersandpesticidesandpricecrashes.Alltheseeventsseverelyaffectfarmersthroughlostproductionandfarmincome,anditisbeyondtheircontrol.Smallresourcepoorfarmerswhoarefoodinsecure

andnutritionallycompromisedareparticularlyvulnerable.Withthegrowingcommercializationofagriculture,themagnitudeoflossduetounfavourableeventualitiesisincreasing.Theriskandthreatfromtrans-boundaryplant,animalandfishpestsanddiseaseshasincreasedrecently.Thecountryhaswitnessedoutbreaksofavianinfluenzaandthereisaloomingthreatfromplantrusts.Globalwarmingandclimaticchangearealsoseentobeposingathreattostabilityoffarmproductionthoughtheexactnatureofclimatechangeanditslikelyeffectsarenotyetknown.Mountainandcoastalareas

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areconsideredtobemorevulnerabletoclimaticchange.

Rising Pressure on Land

2.16 Thelackofasizableshiftofthelabour-forcefromagriculturetonon-agricultureactivitiesmeansthatthelandtolabourratioinIndiahasbeenworseningovertime.During1980-81oneworkerdependedupon0.94hectareoflandforemploymentandlivelihood,whichhadshrunkto0.60hectareby2001.Asthenumberofworkersinagricultureisgrowingthereisfurtherreductioninthelandtolabourratio.Sincethebeginningoftheeraofplanning,India’spolicymakershavetriedtoreduceeconomicdependenceonlandbasedactivities;howeverthishasnotbeensuccessful.ItisabigchallengeforIndiatoshiftcultivatorsandagriculturallabourerstonon-farmemployment.

Food and Nutrition Security

2.17 FoodandnutritionsecurityinIndiacontinuestobeseenasanissueofanadequatesupplyofriceandwheatinthecountry.Thecountryseesitselfasfoodsecureaslongasthesetwofoodstaplesareavailable,theirpricesarestableandthereisasufficientquantityingovernmentbufferstocks.Muchlessattentionispaidtothenutritionalaspectoffoodsecurity.Morethan20percentofthepopulationinthecountrydoesnoteatenoughfoodtomeettheirminimumdailyenergy

requirement.EventhoughpercapitaincomeinIndiahasincreasedby225percentduringthelasttwodecades,ithasnotresultedinanimprovementinbasicnutritionintermsofenergyintake(Table2.5).Onthecontrary,therearereportsofincreaseinnumberandproportionofpopulationthatdidnotconsumeevenminimumrequiredenergy9.Alowintakeofenergyhaslongtermhealthimplications.Indianeedstoaddresstwoseriouschallengesinfoodsecurity;firstly,toreducetheproportionofthepopulationbelowtheminimumthresholdofcalorieintake;andsecondly,toincreasepercapitaenergyintake.

2.18 Theprogressinreducingprotein-energymalnutritionisalsoquiteslow.In1998–99,accordingtoNationalFamilyHealthSurvey-2(NFHS-2),asmuchas36percentoftheadultpopulationofIndiahadabodymassindex(BMI)below18.5(thecut-offforadultmalnutrition);eightyearslater(2005–06)thatsharehadbarelyfallento33percentofthepopulation,despiteadecadeofrobusteconomicgrowth.Similarly,theshareoftheunder-weightchildrenunder-three,inthetotalchildpopulationunder-three,hadnotfallenatall(47percentin1998–99and46percentin2004–05/06).Thereisaneedtolookatfoodsecurityissuesnotinisolationasbeingconfinedtocerealproductionandconsumption,buttoexaminehownutritionaloutcomescanbeimprovedforthevastmajorityofthepoorthroughadequateintakeofthequalityoffood

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intermsofproteins,fatsandessentialmicronutrients–vitamins,mineralsandtraceelements.

Food Safety

2.19 FoodsafetyandqualityhavesufferedinIndiaduetomanyreasons.Thecountrydidnothaveastrongfoodlawandtherecontinuestobeinadequateregulationsandstandards,inspectionservices,laboratoryservicesandeducationandawarenessonvariousaspectsoffoodsafetyandquality.Responsibilityforfoodsafetyissometimesdividedamongseveralagencieswithoverlappingauthority.Nocomprehensiveregularmonitoringprogrammeisbeingconductedinthecountry.Producersandsupportservicesarenotsensitivetowardsfoodsafetyandhygieneandfoodsafetyissuesareignoredbecausepublicservicedepartmentsarenotinpositiontodeliverthebasicinfrastructurelikecleanwaterandhandlingfacilities.Foodtestingfacilitiesarenotwithinthereachofconsumergroupsandconsumers.Thecredibility

andaccountabilityofthefoodsafetyenforcementsystemisverylowandfoodsafetysurveillancemechanismsandcontaminatedfoodrecallsystemsarealsomissing.

2.20 Theproductionofsafefoodrequiresallthoseinvolvedalongthefoodchaintorecognizethatprimaryresponsibilitylieswiththosewhoproduce,processandtradeinfood.Foodsafetyandqualitydependsonthewayfoodisgrownorraised,tohowitiscollected,processed,packaged,soldandconsumed.Oneweaklinkcanmeanthewholefoodchaincollapses.Stakeholdersincludefarmers,fishermen,slaughterhouseoperators,foodprocessors,transportoperators,distributors(bothretailandwholesale)andconsumers,aswellasgovernmentsobligedtoprotectpublichealth.Thisnecessitatesafoodchainapproachfromfarmtofork.

2.21 Inordertoaddresscomplexityandtoupgradefoodsafetyandqualitystandards,anintegratedfoodlawhas

TABLE �.�: Per capita intake of calorie and proteinSurvey Details Calorie (Kcal/day) Protein (gram/day)

Rural Urban Rural Urban

1983(NSS38thRound) 2221 2089 62.0 57.0

1993–94(NSS50thRound) 2153 2071 60.2 57.2

1999–2000(NSS55thRound) 2149 2156 59.1 58.5

2004–05(NSS61stRound) 2047 2020 57.0 57.0

Source:NSSReportNo.513,NutritionalIntakeinIndia,2004–05(QuotedinSectorPaperonFood&NutritionSecurityandFoodSafetyfromConsumersPerspectiveinIndiabyVijaySardana).

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beenenactedrecently.TheFoodSafetyandStandardsAuthorityofIndia(FSSAI)hasbeensetuptostrengthenthefoodqualityandstandardsservices.ItisthemandateofthenewFoodSafetyandStandardsAuthoritytoestablishandimproveregulatoryframeworksforfoodcontrolandqualityassurancecompatiblewithinternationalrequirements,basedonscientificprinciples,andtosupplytechnicaladviceandexpertiseforthedevelopmentofintegratedfoodcontrolsystems.Themajorchallengesinthisareaare(a)tostrengthenandcreatecapacityandinfrastructuretodevelop,monitorandimplementnormsandstandards(c)tocreateawarenessamongvariousactorsinfoodchainand(d)toprovideR&Dbackup.

2.22 Foodsafetyandqualityhavebecomeincreasinglyimportantininternationaltradeoverthelastfewyears.TheinclusionofinternationalfoodstandardsintheWTO’sAgreementonSanitaryandPhytosanitaryMeasures(SPS)andtheAgreementonTechnicalBarrierstoTrade(TBT)requirescountriestoharmonizetheirfoodsafetyandqualitystandardswiththeCodexAlimentariusandtoparticipatemoreeffectivelyinthesettingupofinternationalstandards.Thesestandardsarealsotobeappliedonthefoodproductsexported.

2.23 Safefoodproductionagendaisnotgettingenoughattentioninthecountry.Asamajoragriculturebasedeconomy,useofagro-chemicalsiscommonpractice

infoodproduction.TheuseofpesticidesinIndiaisoneofthelowestintheworld.Indiausesalowamountof0.5kg/hectarepesticidecomparedto7.0kg/hectarebyUSA,2.5kg/hectarebyEurope,12kg/hectarebyJapanand6.6kg/hectarebyKorea�.However,despitethelowconsumptionofpesticides,Indiahasmoreproblemsofpesticideresiduescomparedtoothercountries.Theseresiduesarefoundinfoodproductsandundergroundwater,inpartbecauseofimproperuseofthepesticidesinagriculture,andtheinadequatewastedisposalbythelocalchemicalindustry.Thereisaneedtoraiseawarenessaboutgoodagriculturepractices,increaseR&Donsafetyaspectsoffoodproductionandregulateandcontrolthesafedisposalofchemicalindustrywaste.

Policies and Perceived Gaps

2.24 Policiesforgrowthanddevelopmentofagricultureanditssubsectorscoveralargenumberofareaslike(a)prices(b)marketing(c)trade(d)landtenure(e)farmcredit(f )agriculturalR&D(g)investmentsandsubsidies(h)technologydissemination(i)legalandregulatoryframeworkand(j)productionenhancingprogrammes,includingtechnologytransfer,awarenessraisingandcapacitybuilding.

Price Policy

2.25 Themaingoalsofthisinterventionhavebeentoprovidepriceassurance

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toproducersthroughthesystemofMinimumSupportPrices(MSP)thatareimplementedthroughobligatoryprocurement,maintaininginterandintrayearpricestabilitythroughopenmarketoperations,maintainingbufferstocksanddistributingfoodgrainsatreasonablepricesthroughpublicdistributionsystem.AlthoughMSPsareannouncedformanycommodities,itseffectiveimplementationislimitedtopaddy,wheatandcottoninregionswherethesearetraditionallyinsurplusandwherethesecropsareprocuredbyofficialagencies.Sugarcanehasalsobenefitedfromguaranteedpricesthroughthesystemofstatutoryminimumpricesandstateadvisedprices.AlargenumberofcropsandalargenumberofstatesarenotcoveredunderimplementationofMSP.ItiscommontofindthatpricesreceivedbythefarmersaremuchlowerthantheMSPincropsandinmarketsinvariousstateswhereMSPisnotsupportedbyeffectiveprocurement.Onlyrecently,procurementofcerealshasbeenextendedtolowproductivityregionshavinglargepotentialsuchasthestatesofBihar,UttarPradesh,Orissa,AssamandChattisgarh.Initialindicationsarethatproductionhasstartedrespondingtothesignalofpriceassuranceinthesestates.

2.26 Governmentinterventioninfoodgrainmarketshasdiscouragedprivateinvestmentanddevelopmentofvaluechainsinthesemarkets.Asaresult,thescaleofoperationremainslowandinfrastructureinfoodgrain

marketsremainspoor.Thishasaffectedcompetitionandtheefficiencyofmarketing.

Marketing and Value Addition

2.27 Agriculturalmarketingpolicyprimarilyincludestheframingofrulesandregulationforthesmoothfunctioningofmarkets,theprotectionofcertaininterestgroupsandprovisioningofphysicalandinstitutionalinfrastructure.Theformerincludesbringingagriculturalmarketsunderpubliccontrolbyestablishingregulatedmarketsinthecountryandthepassingofvariousactsgoverningmovement,storage,processing,saleorpurchaseoffarmproduce.AlltransactionsandtheconductofaregulatedmarketareguidedbytheprovisionsoftheAgriculturalProduceMarketRegulationAct(APMRA),whichisamendedfromtimetotime.

2.28 TheAPMRAmandatesthatthesaleorpurchaseofnotifiedagriculturalcommoditiesiscarriedoutinthemarketarea,yardsorsubyardsprovidedforintheAct.Theestablishmentofregulatedmarketsisingeneralfoundtoimprovethefunctioningofassemblymarketsforagriculturalproduceandtheintegrationofproductionpointswithmarkets.TheprimarycriticismoftheAPMRAisthatitgrantedmarketingmonopolytothestateandpreventedprivateinvestmentsinagriculturalmarket,andthatitrestrictsthefarmerfromenteringintodirectcontractwithanyprocessor/manufacture/bulk

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processorastheproduceisrequiredtobechannelledthroughregulatedmarkets.Inordertoovercometheseproblems,theMinistryofAgriculturepreparedaModelActin2003foragriculturalproducemarketingwhichcanbeusedbystategovernmentstopreparetheirindividualact.UndertheModelAPMCActtheprivatesectorcanbelicensedtosetupmarkets.Themodelactalsoallowsforcontractfarminganddirectmarketingbyprivatetrade.Barringafew,statesandunionterritorieshaveadoptedeitherfullyorpartlytheModelAPMCAct.Severalotherinitiativeshavealsobeentakentoimprovethestandardsandtoliberalizeagriculturalmarkets.

2.29 AsaresultoftheimplementationoftheModelAPMCActandotherinitiatives,thedirectpurchasesbytheprivatesectorfromfarmersandcontractfarminghaveseenalargegrowthinmanypartsofthecountry.Thishaspavedthewayforprivateinvestmentinagrifoodmarketingforestablishingsupplychainnetworkswithdirectlinksbetweenfarmers,processorsandotheragrifoodfirms.TheresultingverticalcoordinationinthefoodandagribusinesssectorisexpectedtochangethefaceofagriculturalmarketinginIndia.

2.30 Newinstitutionalarrangements,especiallyfarmers’groups,cooperativesandproducercompanies,andconsumerorganizationsarenowemerginginseveralpartsofthecountry.Theyareintegratingsmallfarmersintothemarketbyremovingvariousbottlenecks.

Similarly,thecorporatesectorisusingthecontractfarmingmodelformeetingitsrequirementsforretailing,processingorexportpurposes.TheareacoveredundercontractfarmingissofarmainlyconfinedtothestatesofTamilNadu,Punjab,andOrissa.Thisinstitutionalarrangementhoweverispickingupacrossthenation.ThemaincompaniesinvolvedincontractfarmingareHindustanUnilever,WIMCO,Pepsi,FoodPro,NDDB,MaxworthOrchards,CadburyIndia,BILT,ITC,JKPaper,AVThomas,Reliance,Agrotech,GodrejAgro,UnitedBreweries,DCMShriram,Markfed,L&T,andEscorts.

2.31 OrganizedretailinginIndiahasseensteadygrowthduringthelastdecade;thishasbeenpushedbyrapidurbanization,growthinurbanpopulation,increasedincomeandconsumerspending,changedlifestyleandaccesstotechnology.FoodWorld(oftheRPGgroup)hasbeentheleaderamongtheorganizedfoodretailchainsandtherearemanymoreretailingagencieslike‘FabMall’,‘MondaytoSunday’,‘Familyart’;‘Moreforyou’‘Heritage’etc.,operatinginthecountry.Mostfoodchainsareregionalinnature,havingoneortwofoodretailoutletsinaparticularcitywithoutextensivepresenceoutsidetheregion.Despiteseveralfactorsfavouringorganizedretailtrade,itisstillinanascentstageinthecountry.Factorssuchaswell-establishedtraditionalretailers,costlyrealestate,governmentpoliciesandconsumerperceptionandpurchasebehaviour,multiplelayersoftaxationarefoundtobelimitingthegrowthoffoodretailchains.

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2.32 Notwithstandingallrecentinitiativestochangethefaceofagriculturalmarketing,valueaddition(particularlyatfarmgate)isverylowonaccountofpoorconnectivity,non-scientificpostharvesthandling,unorganizedmarketing,andaknowledgedeficitongrading,packaging,sorting,pre-coolingetc.amongstakeholders.Thelackofmobileandcommoninfrastructureforpostharvestmanagementisanothergap.Capacitybuildingofpeopleengagedinagro-processingisneededintermsofmarketintelligence,processing,marketing,andtradepractices.Researchanddevelopmenteffortsparticularlyonqualityassuranceandpackagingareweak.Thereisalsoconsiderablescopeforvalueadditionbymakingeconomicuseofcropwastesandbiomassandpartsoffallenanimalsthatgotowasteinthecountryside.

Trade

2.33 Sincetheremovalofrestrictionsofagriculturetradeinthemid1990s,India’sagriculturalexportshavesteadilyincreased.TheratioofexporttoGDPhasincreasedfrom7percentduringthemid1990stomorethan10percentduring2007-08.ExportpromotionpolicieslikeAgriExportZonesandeffortsmadebyinstitutionslikeAPEDA,MPEDAhavealsoplayedanimportantroleinthis.

2.34 WhileIndiasufferedsetbacksintheexportmarketsoftraditionalcommoditieslikespicesandtea,ithassucceeded

inexportingmorelivestockproducts,fruits,floricultureproductsandfishproducts.However,India’sshareinglobalagriculturaltradecontinuestoremainlowandithasnotfullytappeditsadvantagesintheexportofcommoditieslikedairyproducts,meat,fruits,vegetables,andmedicinalplants.Indiahasalsonottakenadvantageofnewexportdemandinorganicproductsandattributebasedproducts.

2.35 Themajorconstraintstoexportarepoorinfrastructure(transport,coldchain,packaging,portfacilities,foodprocessingplants)andlackofgoodhygienicpracticesintheentirefoodchain.Awareness,facilitiesandregulationforfoodsafety,qualitytestingandcertification,protocolsofinternationalstandardsandconformitywithSPSrequirementsareveryweak.

Farm Credit

2.36 Sincethenationalizationofscheduledcommercialbanksin1971,Indiahastakenseveralstepstoenhancethesupplyofinstitutionalcredittothefarmsector.Besidesthesebanks,regionalruralbanksanddifferenttiersofcooperativecreditinstitutionsalsoservethecreditneedsoftheagriculturesector.Further,theNationalBankforAgricultureandRuralDevelopmentwascreatedasanapexinstitutionbyanActofParliamentin1982forfacilitatingcreditflowforpromotionanddevelopmentofagriculture.Italsohasamandatetosupportallotheralliedactivitiesinruralareas,promoteintegrated

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andsustainableruraldevelopmentandsecureprosperityofruralareas.

2.37 Between1980-81and2005-06,thesupplyofshorttermcreditinnominaltermsincreasedmorethanfiftytimeswhilemediumandlongtermcreditincreasedbymorethan55times.Asaresult,thecredittooutputratiofortheagriculturesectorincreasedfrom8percentto26.5percent.Evenwiththisprogressintheflowofinstitutionalcredittoagriculture,itsshareintotalcreditforcultivatorhouseholdwas61.1percentin2002asperthedecennialAllIndiaDebtandInvestmentSurvey(AIDIS).Further,thefindingsoftheNationalSampleSurveyOrganisation(NSSO)59thRound(2003),revealedthatonly27percentofthetotalnumberofcultivatorhouseholdsreceivedcreditfromformalsources.Thiscallsforinitiatingmeasurestocheckthefinancialexclusionofalargeproportionofsmallandmarginalfarmersfromtheinstitutionalfinancialsystem.Anotherseriousproblemwithinstitutionalfinanceisthattheflowofagriculturecredithasnotbeenuniformacrossstatesandregions.Evenwithinstates,therearesharpdifferencesbetweenthecreditflowtodevelopedregions,regionswithgreateraccesstophysicalinfrastructureorregionsclosertourbancentresascomparedtounderdevelopeddistrictsorregions.

Investments and Infrastructure

2.38 Thegovernmenthasplayedaleadingroleincreatingcoreinfrastructure

suchasmajorandmediumirrigationprojects,ruralroads,ruralelectrification,settingupofagriculturalmarkets.However,thebeginningofthe1980switnessedasignificantchangeinpolicyofresourceallocationtoagriculture.Itmarkedthebeginningofdeclineinpublicinvestmentinagricultureandasharpriseinsubsidiestothesector.From1979-80,publicinvestmentinagriculturefailedtokeeppacewiththegrowthofGDPintheagriculturesectoranddeclinedinrealterms.Intheearly1980smorethan3.5percentofagriculturalGDPwasusedaspublicinvestments.Itgraduallyfelltobelow2percentaroundyear2000.Thiscausedsignificantadverseeffectsonthegrowthoftheagriculturesector�, ��.Recognizingtheimportanceofpublicinvestmentsforthesector,thegovernmenthastakenstepstoreversethedecliningtrend.Since2004-05publicinvestmentshaveincreasedeveryyear.Itisproposedtoraisethelevelofpublicinvestmentsto4percentofGDPagriculturebytheendoftheEleventhFiveYearPlan,i.e.bytheyear2011-12.

2.39 Wellfundedschemestocreateormaintainruralinfrastructure,includingtheRuralInfrastructureDevelopmentFund(RIDF)andtheAcceleratedIrrigationBenefitProgramme(AIBP),haveeitherbeenlaunchedorre-launched.Aninterestinginnovationisthelaunchofanewschemetorepair,renovateandrestoreallthewaterbodies(lakes,tanksetc.)thatarecriticalforirrigation.Averyambitiousinfrastructuredevelopmentprogrammetoboosttheagriculture

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sectorintheruralareashasbeenlaunchedintheformofBharatNirman.Oneseriousproblemwithinfrastructurecreatedthroughpublicinvestmentsisitsmaintenance.Duetopoormaintenanceandupkeep,benefitsderivedfrominfrastructurehaveturnedouttobemuchlowerthanexpected.Resourceconstraintisthemainreasonforpoormaintenanceandneglectofruralinfrastructureastheultimateuserseitherdonothavetopayorpaymuchlessthanthetruecostofservices.Thisisbestillustratedbythecurrentchargingregimeforwaterandpowerusedinagriculture.

Agriculture R&D and Technology Dissemination

2.40 PublicsectorresearchandextensionagenciescontinuetodominateknowledgegenerationandmanagementprovisionforagricultureinIndia.Theprivatesector,especiallyinputcompaniesandagro-processors,havebecomeimportantproducersandpromotersofnewknowledgeinthelasttwodecades.NGOshavealsoexpandedtheirinvolvementinagriculture,frompromotingtechnicalknowledgetogeneratingknowledgeoftechnology,institutionsandpoliciesrelevantforagriculture.

2.41 PublicsectorresearchinagriculturecomprisestheIndianCouncilofAgriculturalResearch(ICAR)anditsnetworkofabout100Institutionsand41StateAgriculturalUniversities(SAU)andtheirregionalstations.TheCentral

GovernmentfundsICARwhiletheStateGovernmentsupportsSAUsintheirrespectivestates.Overtheyears,theshareoftheCentralGovernmenthasincreasedanditnowcontributesnearlyhalfofthetotalpublicfundingofagriculturalresearch.Theprivatesectorcontributesonlyasmallfraction(10to15percent)ofthetotalfunding;thisismainlyforin-houseR&Dactivities�0.Governmentbudgetarysupporttoagriculturalresearchinrealtermshassteadilyincreased,althoughitisstillconsideredquitelow.Indiacurrentlyspendsaround0.33percentofagriculturalGDPonagriculturalresearch.

2.42 ThemainchallengeinR&Drelatedtoagriculturehasbeentoimprovethelinkagebetweenresearchandextensionandtoreformthesystemtoimprovetherelevance,accountabilityandefficiencyofpublicresearchorganizations.Thesereformsentaildecentralization,devolutionofpower,provisionofconsultancyandcontractualresearchforbetterlinkagewithclients,researchplanninginaneco-regionandproductionsystemperspective�0.ICARhasimplementedmanyofthesereformsasafollow-uptoimplementrecommendationofvariouscommitteesthathavegoneintotheseaspects.SomeofthereformshavealsobeenaffectedthroughNationalAgriculturalTechnologyProjectandNationalAgriculturalInnovationProject,bothfundedbyWorldBank.However,theSAUshavebeenslowinimplementingthesereforms.AnotherseriouschallengefacedbySAUsisthe

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declineinsupportfromrespectivestategovernments.

2.43 Inthepublicsector,theextensionmachineryoftheStateDepartmentofAgriculture(SDoA)reachesdowntoblockandvillagelevels.ThevillageextensionworkersoftheSDoAcontinuetobeanimportantsourceofinformationforfarmersinIndia,eventhoughthevisitsareirregular,andtheserviceispre-occupiedwiththeimplementationofgovernmentschemes,oftenlinkedtodistributionofsubsidiesandinputs.ComparedwiththeSDoA,theanimalhusbandryandthefisheriesdepartmentsdonothaveadequatefieldlevelpresence.Advisoryservicesintheareaofanimalhusbandryandfisheriesthereforedonotreachmanyfarmers.About22percentofthepostsacrossagricultureandallieddepartmentsremainedvacantin2005-06.Since2004,acallcentrebasedextensionservicehasbeensetupwhereinfarmerscancallonatollfreenumberforfarmadvice.

2.44 Inthecaseofextension,themajorreforminrecentyearshasbeentheestablishmentofadistrictlevelcoordinatingagency,theATMA(AgriculturalTechnologyManagementAgency),initiallyin28pilotdistrictsinsevenstateswithsupportfromtheWorldBank.TheATMAmodelwassubsequentlyupscaled(sinceMay2005)acrossthecountryasacentrallysponsoredscheme.

2.45 Thoughthereisanincreasinglydiversemixofactorscurrentlyengagedin

knowledgegenerationandmanagement,thishasnotresultedinbetterknowledgeuseorapplicationatthegroundlevel.Itiswidelyacceptedthatlinkagesbetweenthelaboratoryandthefieldhaveweakenedandpublicextensionbyitselfcannolongerrespondtothemultifariousdemandsofthefarmingcommunity.Therefore,public-privatepartnershipsneedtobepromotedfordisseminatingtechnologiesdevelopedbyresearchinstitutesatthefieldlevel.AlternativeinstitutionalmodelsliketheFarmerClubspromotedbyNABARDandalternativeapproachesbasedonICTssuchasthe‘e-chaupal’system,areillustrativeinthisregard.

2.46 Sustainedlongrungrowthdependscriticallyontechnologicalprogressandstepsarethereforeneededtostrengthenresearchandextensionsupportinagriculture.Althoughthepotentialofalreadyavailabletechnologiesishigherthanactualfarmproductivity,thiscanonlyhelpinraisingproductionfortheimmediatefuture.Technologyfrontiershavetobemovedfurthertosustainfuturegrowth.Thiswouldneedincreasingapplicationofbiotechnology,bio-informatics,ICTs,renewableenergytechnologiesandnanotechnology.Theneedforstrengtheningpublicsectorresearchcapacityinemployingsuchnewgenerationscienceandtechnologiesismorerelevantthaneverbeforeduetochangingownershiprulesonnewtechnologies.IfthepublicsectorinIndiadoesnotgeneratenewtechnologiesand

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claimintellectualpropertyrightsonsuchtechnologies,thecountryrisksbecomingdependentondevelopedcountriesandtheprivatesectorassourcesofnewtechnologies.

2.47 Whiletheneedforintegratingdifferentkindsofknowledgeintheprocessoftechnologygenerationandpromotionareclearlyevident,thereisanoverallreluctanceamongthepublicresearchandextensionorganizationstoworkwithCSOsandtheprivatesector.ManyofthesuccessfulexperiencesemergingfrominformalR&Dfacilitatedorconductedbycivilsocietyorganizationsremainunnoticedforwantofsupportsystemsandincentivesrequiredforitsupscaling.AkeylessonfromtheimplementationoftheNATPisthatdeliberateinvestmentsinpartnershipbuildingandsharedgovernancearerequiredtospeeduptechnologyadaptationanddissemination.

Policies toward Agricultural Diversification

2.48 Asthegreenrevolutiontechnologyimprovedselfsufficiencyinfoodgrains,thepolicyfocusturnedtowardsdiversificationandbroadbasedgrowthwhichissometimesalsotermedasthe“rainbowrevolution”.Itincludesemphasisonraisingproductionoffruitsandvegetables,livestock,andfishery.Thisshiftinpolicyfocuswasnecessitatedbytrendsindemandwhichwereshowingmuchhighergrowthrateinlivestock

andhorticultureproductsascomparedtocereals.Thelivestocksectorstartedgrowingatamuchhigherratethanthecropsectorfromtheearly1980swhilefruitsandvegetablesstartedshowingthehighestgrowthamongallsegmentsofagricultureinearly1990s.TosupportthisdiversificationtheGovernmentofIndiahasalreadydeclaredthehorticultureindustryasapriorityareaandisprovidinganumberoffiscalincentives.FinancialincentivesforpromotinghorticulturewerestartedintheEighthPlanwhichwasfollowedbylaunchingoftheHorticultureTechnologyMission(HTM)fortheNortheast(subsequentlycoveringallhillstatesintheWesternregionsalso)andtheNationalHorticultureMission(NHM).Theseprogrammessupportedsettingupofplantnurseries,newplantationsofvarioushorticulturalcrops,rejuvenationofoldorchards,andcreationofinfrastructurelikepackhouses,coldstorages,andmarkets.

2.49 Forimprovingmarketingefficiencyandaugmentingmodernstorage,handlingandtransportationinfrastructures,specialschemeshavebeenformulatedbyNationalHorticultureBoard,APEDAandothers.Overallpolicyregimeforhorticulturehasbeenliberalizedandspecificincentiveshavebeenprovidedforhighpriorityfoodprocessingsector.Majorpolicyinitiativestakenintherecentpastare:

Industriallicensingrequirementformostofthefoodprocessingsectorhasbeenremoved.

a.

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Automaticapprovalsforforeigninvestmentsupto100percentpermittedinfoodandbeverage,exceptalcohol.Importofcapitalgoodsandrawmaterialfor100percentexport-orientedunitsallowedatzeroduty.Allprofitfromexportsalesofprocessedfoodexemptedfromcorporatetax.Manyprocessedfooditemsaretotallyexemptfromexciseduty.

2.50 Agri-ExportZones(AEZ)arebeingdevelopedat60placesforidentifiedcommodities,outofwhich45AEZsin19statesfocusonhorticulturalcrops.Horticultureremainsaflagshipsectorinagricultureinthepostliberalizationperiod.Themajorconstraintsinfurtherprogressofthissectorarelowprocessingcapacity,poorpostharvestinfrastructure,absenceoforganizedvaluechainsandweaklinkagebetweenmarketandsmallholders�7.

Area Specific Programmes

2.51 Evenaftermassiveinvestmentsinirrigationmorethan60percentofthearableareainthecountryremainsrainfed.Theseareashavesufferedmorefromthepostmid1990sslowdownthanirrigatedareas.Achievingimprovementsinagriculturalproductivityandlivelihoodsarealsomorechallengingintheseareas.Theseareasrequireaholisticapproachforlandandwatermanagementthatharnesssynergiesin

b.

c.

d.

e.

naturalresourceuse,cropandlivestockproduction,andvariousgovernment,non-governmentandcommunitybasedinstitutions.ThecentralgovernmentconstitutedaNationalRainfedAreaAuthority(NRAA)in2006forholisticdevelopmentofrainfedareas.TheNRAAhasaverywidemandatetoworkandcoordinatewiththekeyministriestopromotedevelopmentofrainfedareasbyraisingproductivity.

2.52 SomeoftherainfedregionsinIndiaarechronicallydroughtproneandsomeregionsgetrelativelyhighandassuredrainfall.ThiswouldrequireNRAAtodeveloptotallydifferentstrategiesfordifferentregions.NRAAcouldalsointroducechangesinlawtorestricttheindividual’srighttoextractunlimitedamountsofwaterfromunderone’splot,andvestingtherighttoregulateaccesstoanduseofgroundwateranditspricingwithvillagecommunities.Afarmingsystemapproachthatintegratescrop,livestock,agro-forestry,andhorticultureandwatersheddevelopmentapproachisconsideredvitalforholisticandsustainabledevelopmentofrainfedareas.DifferentMinistriesareinvolvedinvariousprogrammesinrainfedareas.Convergenceoftheseprogrammesatthewatershedlevelwouldhelpinraisingagriculturalproductivity.

Livestock Development

2.53 Thelivestocksectorhasshownbetterperformancethancropsector

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inbothproductionandtrade.Thesectorholdsvastpotentialforincreaseinproductivityandproductionandimportantlyprovidinglivelihoodopportunitiestothepoor.Thechallengesinthissectorareimprovementinherdqualitysuchasselectivebreedingutilizingbetterqualityindigenousstocks,harnessingqualitytraitsofindigenousbreeds,eliminationofunproductiveanimals,improvementinfeedandnutrition,andhealthanddiseasemanagement.Amajorstep-upininfrastructureandpolicysupport,acomprehensivediseasecontrolprogrammeincludingforsmallruminants,poultryandpigs,arerequired.Theneedsofthissectoralsolinktothoseoffoodsafetyandvalueaddition.

National Forest Policy and Resources

2.54 India’sNationalForestPolicy1988dealswithalmostallaspectsofforests.Thepolicyassignshighestimportancetoenvironmentalfunctionsofforestsincludingconservationofbiologicaldiversity,soilandwater.Thisgreatheritageis,however,underthreatnotonlyfromunplannedcollection,butalsofromrampantgrazing,fireandtramplingbyanimals.AccordingtoarecentestimateofForestSurveyofIndia,forestregeneration,ingeneral,islackinginmorethan50percentofforestsofthecountry.Nearly173000villages(about28percentofthe

total)arelocatedalongtheforestfringe.Forestssupportgrazingofnearly60percentofthelivestock(270millionoutofabout450million)andprovidefirewoodtomostofheadloadersforsaleinthemarket.Theforestdwellersareamongthepoorestofthepooranddependsignificantlyonforestsfortheirlivelihood.Theirsustainabledevelopmentisamajorchallengetothesectorandthenation.

2.55 Onaccountoflimitedforestareaandgrowingdemand,thesupplyoftimberisprogressivelyfallingshortofrequirements.Inrespecttoindustrialwood,thedeficitintheyear2000wasoftheorderof29millioncubicmeters.Thisisexpectedtoexceed43millioncubicmetersbytheyear2020��.Thewithdrawaloffuelwoodfromforestsintheyear2000wasestimatedat86milliontonnesannuallyagainstthesustainablelevelof17milliontonnes��.Publicforestscannotmeetdemandsforvariousforestproductsandtheycannotsustaintherisingpressureofdemandforfuelwood,grazing,etc.Therefore,thereisaneedtomeetsuchdemandfromforestryoutsidepublicforestandfromagriculture.

2.56 Thoughtheextentofforestlandinthecountryis77.5millionhectares,satellitedataof2002indicateagreencoverofonly23.7percent.Thisindicatesascopetoraiseproductionofwoodandotherforestproductsinthecountry.Considerablescopealsoexiststoraiseproductivityofgrassesandotherfodderinthepublicforest.

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Fishery Resources

2.57 DevelopmentprogrammesinfisheriesandaquaculturefocusonenhancingtheproductionoffishfromtheIndianwaters,bothmarineandinland,onanenvironmentallysustainableandsociallyequitablebasis,strengtheninfrastructureinharvesting,postharvestvalueadditionandmarketing,upliftingoffisherandaqua-farmercommunitieswithgainfulemploymentopportunities,andcapacitystrengthening.Variousschemesrelatedtothefisherysectorexistundertwoumbrellaschemes,i.e.(a)developmentofinlandfisheriesandaquaculture,and(b)developmentofmarinefisheries,infrastructureandpostharvestoperation.

2.58 Theinlandmacroschemecoversallaspectsrelatedtoinlandfisheriessuchasreservoirs,lakes,canals,rivers,aquacultureinponds,brackishwaterareaanduseofwaterloggedareas.Theschemeenvisagesencouragingleasingofwaterareas,expandingaquaculturebyconstructionofnewponds,creatingacadreoftrainedfishers,popularizingshrimp/fishfarming,utilizingavailablebrackishwaterlandforbrackishwateraquacultureandprovidingsuitabletechnologypackagesforpromotionofcoldwaterfisheries.TheemphasisistoincreasefishproductionininlandwatersaswellastoinvolveFishFarmingDevelopmentAgencies(FFDA)andBrackish-waterFishFarmingDevelopmentAgencies(BFDA’s)forthe

developmentanddeliveryofsustainableaquaculturethroughoutthecountry.

2.59 Thedevelopmentofmarinefisheries,infrastructureandpostharvestenvisageimprovingproductionandproductivityinthemarinefishingandtherebyimprovingfoodsecurity,exportearningandthelivelihoodofcoastalfishingcommunities.

2.60 Thedeepseafisheriesresourcesarepoorlyexploited.Thereareabout490vesselsoperatingagainstrecommended725vesselsforsustainableexploitationofharvestableresourcesof1.36milliontonnes.Therefore,theGovernmentofIndiahasintroducedaschemefortheintroductionofresourcespecificdeepseafishingvessels.ThereisalsoanemphasisonimprovingminorfishingharboursandprovidingnewlandingcentresaswellasnewmodelretailfishmarketsintheEleventhPlan.

2.61 AmajorinitiativeinthefisherysectoristheestablishmentofaNationalFisheriesDevelopmentBoard(NFDB)inSeptember2006withitsheadquartersatHyderabad.NFDBhasinitiatedvariousdevelopmentactivitiessuchasintensiveaquacultureinpondsandtanksintenstates,establishmentofhatcheriesforfishseedproductioninthreestates,assistanceforimpartingtrainingtobeneficiariesin26states,financialassistancefordevelopmentofreservoirsineightstates.Otheractivitiesundertakenareestablishmentofafeed

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millfortroutfeedinJammuandKashmir,seaweedcultivation,coastalaquacultureandimprovingthequalityoffishbyestablishingfishdressingcentresandsolardryers.

2.62 Duetopoorlyregulatedfisheries,thesectorisfacingbiodiversitylossanddepletionofstock.Waterqualityandquantity,neglectoftraditionalwaterbodiesandcollapseoftraditionalfishandwatermanagementinstitutionsareseriousissuesininlandfishery.

Centre State Dichotomy

2.63 AccordingtotheIndianConstitution,agriculture(includinghighereducationandagriculturalmarketing)isastatesubjectwiththeMinistryofAgricultureattheCentrelayingdownthemajorpolicyguidelines.Significantresourcesflowfromthecentretothestatesforvariousdevelopmentactivities.Theseconstituteusefulmeanstopersuadethestatestofollowpoliciesandstrategiesthatareconsistentwithnationalobjectivesandgoals.TheUnionGovernmentinitiatesplanningprocessesandtheCentrallySponsoredSchemes(mostlyonmatchingfundsbasis),thereishardlyanyconflictbetweenwhatboththecentreandthestatesdesiretoachieveandthestrategies

theyprofesstofollow.Thestateshowever,struggleonoccasiontoprovidematchingfundsbecauseoftheirstraight-jacketedfinancialposition.Similarly,thecentralgovernmentsubstantiallyinfluencesresearch,educationandextensionactivitiesatthestatelevelthroughresearchactivities,overseeingagriculturaleducation(ICAR),designingandfinancingandmonitoringseveralcentralsectorextensionanddevelopmentprogrammesandlayingdownallmajorpolicyguidelines.Therearein-builtmechanismsinthesystemtoinvolvethestatesandtotaketheirviewpointinwhatisproposedatthenationallevel.

2.64 Inordertoaddressstatespecificityandtoprovideflexibilitytothestatesindifferentdevelopmentschemes,aspecialmechanismintheformoftheMacroManagementSchemewasstartedintheyear2000.TheMacroManagementapproachismeanttoovercometheproblemsduetotherigiduniformityincentrallysponsoredschemes,andaccordgreaterflexibilitytostategovernmentstodevelopandpursueactivitiesonthebasisofregionalpriorities.Itisthus,amajorsteptowardsachievingdecentralizationinpursuanceofrestoringprimacyofthestatesinagriculturaldevelopmentplanning.

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3 TheComparativeAdvantageofFAOinIndia

3.1 IndiaisafoundermemberofFAOandparticipatesactivelyinthegovernanceoftheorganization.ThispartnershiphasbenefitedbothFAOandIndia.FAOiswidelyknowninIndiaasithasplayedacatalyticroleinIndia’sprogressintheareasofcrops,livestock,fishery,foodsecurityandinthemanagementofnaturalresources.ExpertsfromIndiahaveservedinimportantpositionsinFAOHeadquarters,regionalandcountryofficesandinexecutingFAOprojectsinvariouscountries.Theyhavebeenmembersofscientificexperts’meetingsrelatedtofoodsafety.FAOpublicationsanditsreportsonemergingissuesandinformationavailableatitswebsiteareverypopularamongdifferentsectionsofsocietyinIndia.ThereisaparticularappreciationfortheroleofFAOinsensitizingnationalandinternationalcommunitiesondifferentaspectsoffoodandnutritionsecurityandinhighlightingtheplightofpoor,hungryandvulnerablepeople,aswellasinfoodsafety.ThisimpartsacomparativeadvantagetoFAOinthecountryintermsofitsimage.

3.2 FAOhashighlevelexpertiseinmanyareasoffoodandagricultureandithasglobalreachthroughitsactivepresenceinalargepartofthedevelopingworld.AnotheradvantageofFAOisitscredibilityasUNagencyanditsuniqueadvantageasaneutraladviserintechnicalandpolicymatters.

3.3 GiventhesizeanddiversityofIndia,thevalueofFAOinthecountrydoesnotresideinundertakinglargeormegaprojectsandactivitiestoaddressnationalconcernsperse.Indiahasreachedacertainstageofdevelopmentinmostfieldsofagricultureanditislaunchingbiginitiativestoharnessthepotentialofexistingandnewtechnologies.However,Indiawillneedhigherorderglobalexpertisetoaddressemergingneedsandaccesstobestpracticesinprogrammedesignandimplementationtoresolvesomeoftheproblemsinagriculture.ItwasnotedinChapter1(paragraph1.9)thatsystematicimprovementsingovernanceandimplementationareneededtoobtaintheresultsexpectedfromcentrallysponsoredgovernmentschemes;FAOcanprovideindependentadviceontechnicalandimplementationissues.ItissuggestedthatFAOcanplayacatalyticrolebasedonitscomparativeadvantageinthefollowingthematicareas:

Highqualitytechnicalassistanceandcapacitybuilding.Pilotinginnovativeapproachesincriticalareas.Multilateralcollaborationsontrans-boundaryproblems.HarnessingIndianexpertiseforotherdevelopingcountries.Advocacyandaneutraladviserandbroker.

a.

b.

c.

d.

e.

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High Quality Technical Assistance and Capacity Building

3.4 FAOishighlyregardedasaknowledgeorganizationbyallstakeholdersinIndia.TheygenerallyexpectFAOtoprovidehighqualitytechnicalassistancetomeetthenichegapsthatIndianorganizationsmayhave,inparticularonemergingissues.BeforecommittingtodeliversuchadviceacrosscheckwasmadewiththetechnicaldivisionsofFAOtodeterminetheirperceptionsofthecomparativeadvantagetotheminmeetingtheexpectationsofIndia.

3.5 TheForestryDepartmentconsidersthatitsstrengthslieinfacilitatingthedevelopmentofanetworkofstrategicthinkersandplannersintheforestsectoratthenationalandstatelevelswhocouldimprovethestrategicplanningcapacityofthecentralandstategovernments.Suchaprocesswouldcreateopportunitiestounderstandthelargersocialandeconomicchanges,theirimplicationsontheforestsectorandhowthesectormayrespondtotheemergingchallenges.

3.6 InthefisheryandaquaculturesectorFAOisoftheviewthatitsgreatestcapacityliesinadvisingstategovernmentsregardingaquacultureandfisherysectordevelopmentpolicy.Theycanbringinternationalexperiencerelatedtotradeandfoodsafetyforfishproductsandexpertiseinthedevelopmentof,

andcompliancewith,internationalagreements.

3.7 FAOisessentiallyaknowledgemanagementorganizationandasaresultithasdevelopedexpertiseinthedevelopmentofinformationandcommunicationservices.TheKnowledgeandCommunicationDepartmenthasahighlevelofexpertiseinthedevelopmentofmethodsandtoolsfororganizingagriculturalknowledgeresourcesanditiscurrentlyprovidingsupporttoIndia.

3.8 TheFAOLawDevelopmentServiceisuniqueintheUNsystemandbringsknowledgeandexpertiseonthedraftingoflegislationonagriculturalissues.Whenthisiscombinedwithdetailedtechnicalexpertiseonaparticulartopic,FAOcandeliversupporttofederalandstatelevellegislatorsthatarenotreplicatedelsewhere.

3.9 Inthelivestocksector,FAOhassignificantcomparativeadvantageinpro-poorlivestockpolicyanalysisthathasbeendevelopedthrougharecentglobalprogrammeandaSouthAsiahubthatcoversthreecountriesfromitsbaseinIndia.ItalsohascapacityinanimalproductivityimprovementthatisrelevanttoIndia.ThecapacityofFAOtoassistwithtrans-boundaryanimaldiseasesisaddressedinparagraph3.16.

3.10 FAOhasuniqueexperience,toolsandmethodstoidentifyandaddress

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pesticiderelatedproblemsthroughouttheworld.Pesticidesdifferfromotherchemicalsinthattheyaredesignedtobetoxicandareintentionallydispersedintheenvironmentandontofoodcropsbylargelyuntrainedpeople.FarmersFieldSchools(FFS)andIPMapproachescouldbestrongtoolsinaddressingnotonlythisbutalsopromotingsustainableproductionsystemssuchasinpulses.ThelinkbetweenpesticidemanagementandsustainableintensificationofcropproductionaswellasfoodsafetyandqualityisclearandcanonlybefullysupportedbyFAOasanorganizationconcernedwithaholisticviewoffoodproduction.

3.11 Finally,FAOhassignificantcapacityincross-cuttingissuesthatunderpindevelopmentparadigmssuchasnutrition;gender;participatoryprocesses;sustainableagriculture;andruralemployment.FAOhascertaincomparativeadvantagesinsomeoftheseareasensuringspecificgendercomponentswithregardtoclimatechange,foodsecurity,wateretc.IndiahasathrivingNGOsectorthathasembracedandsuccessfullyappliedmanyofthetechniques,approachesandtoolsusedinthiswork.Itisanticipatedthatcollaborationinthisareaofworkwouldbenefitbothpartners.

Piloting Innovative Approaches in Critical Areas

3.12 IndiahasbeentheprovinggroundforinnovativeworkbyFAOin

groundwatermanagementandinraisingtheperformanceofagriculturalwatermanagementassetsandinstitutions.FAOhaswonglobalrecognitionforitsimplementationandupscalingoflocal,decentralizedgroundwatermanagement.FAOisalsoaregionalleaderintheareaofirrigationmanagement;ithasledthedesignandapplicationofanirrigationmodernizationprogramme(MASSCOTTE)whichisnowbeingexpandedinanumberofstates.

3.13 TheLandTenureandManagementUnitofFAOhascooperatedwiththeWorldBankonanumberofstatelevelactivitiesinrecentyears.FAOhascorecapacitiesthatcomplementthoseoftheBankandhasanexcellentworkingrelationshipwiththeBankstaffonthistopic.FAOandtheWorldBankhavesignificantcomparativeadvantageindeliveringsupporttoinnovativepilotsonlandtenureissues.

3.14 FAOcanplayaleadroleinprovidingadviceonthedevelopmentofagribusinessandfoodindustries,includingaspectsrelatedtofoodsafetyandquality.FAOisthesolemulti-lateralorganizationthathasanofficialmandatetodeliverservicesrelatingtopublicsectorpoliciesandregulationsintheagriculturalsector.SeveralotherUNagencieshavesupportiveroles(e.g.UNIDO,UNDP,ILO,UNCTAD)butcannottaketheleadadvisoryroleinfoodandagriculture.SeveraltechnicaldivisionsacrossFAOcanprovidesupportonpublicsectorpoliciestoenhanceprivatesectorinvestmentintheestablishmentof

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wellcoordinatedandmodernizedfoodindustriesthatlinktosmallscalefarmers.

Multilateral Collaboration on Trans-boundary Problems

3.15 Solvingtrans-boundaryproblemssuchasthoseassociatedwithclimatechangeandplantandanimaldiseasesisaclassicglobalpublicgoodbecausenosinglecountrycansolvesuchproblemsanditisonlywhenthecountriesofaregionortheglobecometogetherthatsolutionsmayemerge.Asamultilateralorganization,FAObringsuniquecapacitytothedeliveryofglobalpublicgoodsinthefoodandagriculturesectors.ThisisparticularlythecaseinfisheriesandforestrywhereFAOistheonlymultilateralagencywithamandateinthesesectors.Evenwherethereareothermultilateralactors,suchasOfficeInternationaldesEpizooties(OIE)inthecaseoflivestock,theactorshaveagreedonademarcationofworkandresponsibilitytoeliminateoverlapandwaste.

3.16 FAObringstothisworkitsstandingasaneutraladviser,specifictechnicalexpertiseandexperienceintheapplicationofICTandgeomatics(thedisciplineofgathering,storing,processinganddeliveringspatiallyreferencedinformation)suchthatrelevantdataisavailabletosupportmultilateraldiscussions.FAOhasthecapacitytocontinuetosupportIndiainthisareaofworkandtodrawonrelevantknowledge

andexperiencefromwithinIndia.FAOcanassistIndiafurtherwithworkrelatedtoavianinfluenza,thewheatrustUG99,managementoflargemarineeco-systems,footandmouthdiseaseandharmonizationoffoodstandards.

3.17 FAOmaintainsbyfarthelargestandmostcomprehensivesetofbasicstatisticsintheareasofitsmandate8.InpursuitofthisworkFAOhasdevelopedthecapacitytoguideandassistcountrieswiththestatisticalsystemsformonitoringproductionsystemsaswellashunger.

3.18 FAOtogetherwithWHOprovidesthesecretariatforCodexAlimentarius.FAOhasuniquecomparativeadvantageinprovidingsupportformembercountriestoenhancetheircapacitytoparticipateintheCodexAlimentariusCommissionandtoassistcountriestodevelopfoodsafetysystems.

Harnessing Indian Expertise for Other Developing Countries

3.19 ThestrengthofsomeindividualsandinstitutionswithinIndiaisaparticularattractiontoFAOanditsotherpartnercountries.AlthoughIndiahasparticipatedinsouth-southcooperationinitiativeswithFAOinthepast,thecurrentthinkingwithingovernmentcirclesisthatFAOdoesnotaddanyvaluebeyondthatwhichtheirownmissionscanbringaboutonabilateralbasis.FAOcanbringother

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dimensionstothiscooperationthathavenotpreviouslybeenfeaturedinworkwithIndia.Theseinclude:collaborationofIndianthink-tankswithFAOworkonregionaltradeagreementsintheSAARCregion,traininginIndiaongroundwatermanagementandirrigationmanagementforcountriesinAsiaandlinkinglaboratoriesandresearchcentresintoregionalnetworks.

3.20 TheFAOInvestmentCentrecallsonexpertsfromIndiatoassistinitsworkinIndiaandinothercountries.TheInvestmentCentrehassignificantcomparativeadvantageinpromotinggreaterinvestmentinagricultureandruraldevelopment.Itsprimaryadvantageisthecapacitytoidentifyandformulateeffectiveandsustainableagriculturalpolicies,programmesandprojects.ItdoesthiswithfundingfrommultilateralinstitutionssuchastheWorldBank,regionaldevelopmentbanksandinternationalfunds.

Advocacy and a Neutral Adviser and Broker

3.21 FAOhastraditionallyraisedissuesoffoodsecurity,hungerandnutritioninthecountrybyorganizingWorldFoodDayandencouragingcivilsocietytoparticipateinthemalnutritiondebateinthecountry.TheFoodandNutritionSecuritycommunityof“Solution

Exchange”,hostedbyFAOIndiahasbeenaverypopularplatformfortheexchangeofideasonfoodandnutritionsecurityandalargenumberofotherissuesconcerningpoverty,socialwelfare,effectivenessofnutritioninterventions,organicfarming,traditionalknowledgeandpracticesandmanymoreaspects.Thishasindirectlycontributedtowardspolicyadvocacy.ThefactthatIndiaisnoton-tracktoachieveMDGOneandthatitismovinginanegativedirectiononthisgoalreinforcestheimportanceofrenewedefforts.Moreover,newissuescontinuetoarisewhichrequirestrongarticulationandadvocacy.WithstrengthenedsupportfromHQandRAP,FAOIndiawouldbeinagoodpositiontotakeamoreproactiveroleinadvocacy.

3.22 FAOhasinternationalreachandasaUnitedNationsbodyitcanfacilitatethemefocusedcollaborationsbetweenIndiaandothercountriesinSouthAsia.Thiscurrentlyoccursinthecontextofavianinfluenza,fisheriesmanagementintheBayofBengal,thewheatrustUG99andpro-poorlivestockpolicy.FurtheropportunitiesexisttoutilizethetechnicalcapacityandinternationalcredibilityofFAOintheareasoffoodsafetyregulations,othercross-borderpestsanddiseasesandwatermanagementinvolvingcountrieshavingriparianrightsoninternationalriversystems.

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4 MappingthePrioritiesofIndiatotheCapacitiesofFAO

4.1 IndiaseemstohavereachedastagewherethescopeforconventionalFAOprojectsismorelimitedascomparedtothepast,althoughintraining,interregionalprojectsandareaslikestandardsandstatistics,itisstillrelevant.Butmorerequirements-especiallyintheareasofknowledgesharingandinformationlinkages-willemergeduringtheanticipatedtransitionoftheIndianagriculturaleconomy.Theywillrelatetoincreasingcommercializationofagriculture,itssustainabilityandlinkswithlargermarkets.Theywillberelatedtothediversificationoftheeconomyandwillhaveintersectorsignificance.Newerinstitutionalmechanismsinproductionandmarketingapartfromthestatewillbeinvolved.Cuttingedgetechnologieswillhaveacompellingrelevance,particularlyinrelationtoIndia’srenewableresourcecrisesandlargeagriculturalworkforce.

4.2 Indiawillneedhigherorderglobalexpertisetoadjusttothechangesinandaroundagricultureandtoaddressanticipatedproblemslikeclimatechangeandenergystress.AstheEleventhPlanshows,agriculturalpolicymakingandplanningwillhavetobeundertakenwithnewmindsets.OneoftheobjectivesoftheNMTPFprocessistosetupamechanismandstructuretocoordinateFAOinputtothisprocessofpolicychange.

4.3 GiventhediverseneedsofIndianagricultureitisimportanttolookatthecomparativeadvantageofFAOinrelationtospecificsectorsandaspects.Inthischapter,theneedsofIndia(Chapter2)aremappedtotheareasofcomparativeadvantagethatFAOhasinworkinginIndia(Chapter3).Theoutcomespresentedbelowutilizetheframeworkusedinparagraph3.3,namelythethematicareasof:

Highqualitytechnicalassistanceandcapacitybuilding.Pilotinginnovativeapproachesincriticalareas.Multilateralcollaborationsontrans-boundaryproblems.HarnessingIndianexpertiseforotherdevelopingcountries.Advocacyandaneutraladviserandbroker.

TheneedsofIndiahavebeendrawnfromtheten‘sector’papers(seeannex1)thatwerecommissionedbyFAOandwhichwerethesubjectofafivedayconsultationworkshop.

High Quality Technical Assistance and Capacity Building

4.4 FAOcapacityinforestryshouldbeappliedtostrengthencapabilitiesfor

a.

b.

c.

d.

e.

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policyanalysisandstrategicplanningatthenationalandstatelevels.Itshouldalsoprovidetechnicalsupporttoorganizationsatthegrassrootlevel,buildinstitutionsandempowercommunitiesintheforestedregionswiththetwinobjectivesofsustainableforestmanagementandpovertyreduction.

4.5 Inthefisheriesandaquaculturesector,FAOshouldsupportgovernmentprogrammesinthefollowingareas:

Animalaquatichealthissuesanddevelopmentandimplementationofsuitablequarantinesystems.Buildingcapacitytoanalysetheimpactofclimatechangeandtodevelopadaptationstrategiesofbothmarineandinlandfisheries.Improvementofsmallharbourmanagement.Sustainablemanagementofin-shore(includingriverineandlacustrine)fisheries,andmarineecosystems.Formulationandproductionofsafefishfeed.Fishermen’sparticipationinseedingandsustainablefishmanagementinstreams,reservoirsandwaterbodies.Supporttoindustrydevelopmentinitiativestodiversifyproductionandmarkets.

4.6 Thesectorpapersandthestakeholderconsultationidentifiedalarge

a.

b.

c.

d.

e.

f.

g.

numberofareasunderthebannerofknowledgegenerationandmanagement.Theneedsarereportedinthissectionontechnicalassistanceandcapacitybuilding,howeversomelinktootherthematicareas:

Promotenewwaysofworking(consortia,partneringwithprivatesectorandCSOs,waysofintegratingtechnologies,integratedextensiondeliveryetc.)throughtrainingandfacilitatedinstitutionallearningexperiments.SynthesisofbestpracticesandpreparationofdocumentstocapturelessonslearntfromMinistryofAgricultureinitiativesinordertobringaboutconvergenceofvariousdevelopmentandextensionprogrammesatdistrictandstatelevels.Supportstatelevelreviewsofextensionorganizationsandfacilitateinstitutionalreformsandcapacitydevelopment.Trainingonclientorientedprogrammedesignandlearningbasedmonitoring.Facilitatepilotinnovationsinvolvingnewsectorcoordinationmechanismsthatlinkfarmers,research,extension,inputagenciesandoutputmarkets.Organizepolicydialoguesandconsultationstosupportcrosslearningamongmajorstakeholders.SupporttheeffortsofNationalAgriculturalResearchSystems

a.

b.

c.

d.

e.

f.

g.

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(NARS)inenhancingaccesstonewtechnologiesbywayofinternationalexpertiseandlinkagestodifferentsourcesofnewgenerationscienceandtechnologies.

4.7 SolutionExchangewasnotedasavaluableplatformfortheexchangeofideasonfoodandnutritionsecurityandalargenumberofotherissues(paragraph3.21).ThisplatformshouldbemainstreamedintotheworkofFAOinsupportofgovernmentprogrammes.ThiswouldprovideSolutionExchangewithfinancialstability,focusitsdiscussionstospecificprogrammaticneedsanddriveanexpansionoflanguagecoveragethatcouldhelpthemembershipgrowandgivegreaterregionalrelevance.

4.8 InthelivestocksectorFAOshouldsupportgovernmentprogrammesto:

Upgradeskillsandexpertiseinfrontierareasoflivestockscienceandtechnology-breeding,indigenousbreedimprovement,preservationofanimalgermplasm,animalhealthcareandhygiene,nutrition,goodmanagementpractices.Analysepotentialimpactsofclimatechangeonthelivestocksectoranddevelopadaptationstrategies.Conductvaluechainanalysesandriskassessmentsforselectedlivestockcommoditiesandproductsespeciallythoseanimalsandbirds

a.

b.

c.

onwhichthepoordepend.Supportforthecomprehensivedevelopmentstrategiesofsmallruminantsandpiggeriesasapotentlivelihoodoptionforpoorpeoplelivinginrainfedandmarginalareas.Facilitateregionalandglobalcooperationandhelpformulateactionfortrans-boundaryanimalpestsanddiseases,includingnationalquarantineandbio-securityumbrella(paragraph4.11).

ThecropsectorinIndiaisstronglyinfluencedbygovernmentinterventionssuchastheMSPschemeanditsdevelopmentisdriventhroughnationalmissionsandtheICARsystem.FAOshouldforgeastrongworkingalliancewithgovernmentprogrammes.FAOtechnicalassistanceandcapacitybuildingcouldinclude:

Improvementinproductivityofpulses-lentil,gram‘kabuli’,cowpea,andclusterbean.Sustainableintensificationofcropproduction,includingfacilitatingconservationandutilizationofgermplasm.Buildinstitutionalcapacitytoimplementregulationspertainingtothesafeuseofpesticidestoprotectusersandconsumers.Strengthengovernmentprogrammesrelatedtodrylandagriculture

d.

e.

a.

b.

c.

d.

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Largegovernmentdevelopmentprogrammesareveryoftenimplementedwithoutadequatemonitoringandevaluationformidcoursecorrection.FAOshouldbringbothitsownexperienceofmonitoringandevaluationandbestpracticesfromothercountriesandsectorstohelptheimplementationofgovernmentprogrammesthatFAOmightbeassociatedwith.

Piloting Innovative Approaches in Critical Areas

4.9 FAOisusingaNationalExecutionmodalityforprojectsonlandandwaterthatareveryinnovativeandwhichaddressthemostseriouschallengethatIndiafacesinsustainablenaturalresourceuse.Theseinnovativeexperiences,suchasdemandsidegroundwatermanagement(APFAMGSproject),irrigationwatermanagementandmanagingsoilsalinityinwaterloggedcanalcommands(APWAMproject)andcapacitybuildingformodernizationandefficiencyofirrigationsystems(MASSCOTTE)shouldbereplicatedtothegreatestextentpossible.Atthesametime,theinnovativeapproachesneedtobeextendedtodevelopnewmeansofmanagingagriculturalwaterunderclimatechangescenariosandimprovingwateruseefficiency.

4.10 Diversificationandincreasedcommercializationofagricultureandhorticulturenecessitatesthatsmallholdersarelinkedtomarketsandthatpost

harvestprocessingandvalueadditionisemphasized.Severalgovernmentinitiativesandorganizationshavebeenputinplacetocontributetocommercializingagricultureandhorticulture.Anunderlyingphilosophyistoimprovefarmerreturnsandsustainablelandmanagement.However,furthertechnicalinputandpolicyassistancebyFAOiswarrantedinnewandexistingcropsectors.AlthoughthereareanumberofnotableinnovationsinIndia,suchasthedairycooperatives,‘e-chaupals’andmoderncontractfarming,thereremainalargeproportionofsmallscalefarmerswhocannotaccessmoreremunerativemarkets.FAOshoulddevelopandpilotcommercialmodelsthatcanbringthesefarmersintoformalvaluechainsinboththeagriculturalandhorticulturalsectors.Theagribusinesssectorpaperemphasizedtheimportanceofunderutilizedcropsthatmayhavesignificantmarketpotential.

Multilateral Collaboration on Trans-boundary Problems

4.11 TheglobalpublicgoodsdeliveredbyFAOcontinuetobeofrelevancetoIndia(paragraphs3.1to3.22).Thesectorpapersandstakeholderconsultationreinforcedtheimportanceofcontinuedinvestmentinthese.FAOshouldcontinuetosupportIndiatoaccessglobalpublicgoodsrelatedtocrucialareassuchastrans-boundarycrop,livestockandfishdiseasesandpests,fisherymanagement,germplasmconservationand

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management,foodsafety,managementofwaterresourcesininternationalriversystemsandclimatechange.Moreover,FAOshouldassistIndia,whennecessary,tocontributetothedevelopmentoftheseglobalpublicgoods.

Harnessing Indian Expertise for Other Developing Countries

4.12 TheissueofIndiacontributingtothesolutionofproblemsinothercountriesdidnotemergewithinthesectorpapersandtherelatedconsultation.Thisisnotsurprising,giventhatthefocuswasontheneedsofIndia.Thereforethecontentofthisthematicareamust,atfirst,bedrivenbyFAO.Chapter3identifiedthatIndiahastheabilitytoworkwithFAOtoassistothercountriesininteraliawaterandirrigationmanagement,policyanalysisrelatedtoregionaltradeagreements,agriculturalresearchemployingadvancedtechnologiesandformulationofagriculturalinvestmentproposals.

Advocacy and a Neutral Adviser and Broker

4.13 ThedebateandpolicyonfoodandnutritionsecurityinIndiaseemsto

havearrivedataconclusionthatalowlevelofpercapitaenergyintakeinthecountryisnotaseriousmatterandnoseriousthoughtisgiventoincreasingpercapitaenergyintakeinlinewiththeincreasingpercapitaincome.Thisisamisplacedunderstandingoffoodandnutritionsecuritythatishavinganadverseimpactonhouseholdnutritionsecurity.FAOhasbeenraisingtheissueoffoodandnutritionsecurityanditsseverityinthecountrynotonlyonWorldFoodDaybutalsothroughdebateinthecountry.FAOshouldworkwiththegovernmenttosensitizepublicopiniontotheimportanceofachievingtotalnutritionsecurityandzerohunger.Particularattentionshouldbedrawntothegrowingeconomicdisparitybetweenrichandpoor.

4.14 Thereislittleornoconsensusonmanymajorissuessuchasinputsubsidies,GMOs,climatechange,marinemanagement,landtenuresystems,jointforestmanagement,corporatemanagementofforestresources,foodsafetynets,andtheroleoftheprivatesectorinagriculturalresearchandextension.FAOshouldbepreparedtorespondtoanyrequestfromthegovernmenttoprovideindependentanalysisofthese.

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5 ConcludingRemarks

5.1 ThefoodandagriculturesystemofIndiaisvast,diverseandcomplex.Thecountryalsohasadiverseinstitutionalsetup,acentre-statedichotomy,andmultipleagenciesinvolvedinthesametaskswithweakaccountability.Despitetheinherentdifficultiesofthescaleofthecountryanditsproblems,Indiahasachievednotablesuccessesinagriculture.FoodgrainproductionhasmorethanquadrupledsinceIndependenceandthegreenrevolutionwhilethewhiterevolutionbroughtaboutthesupplyofgoodqualitymilktocitiesfromthousandsofsmall-scaleruralmilkproducersthroughtheirowncooperatives.

5.2 DuringlastoneandhalfdecadesseveralnewchallengeshaveemergedinIndianagriculture.ThegrowthrateofagriculturalGDPdeceleratedduringthemid1990stothemiddleoffirstdecadeofthenewcentury.Theactualgrowthrateofthesectorremainedbelowthetargetedgrowthof4percent.Ontheotherhand,thenon-agriculturalsectorsoftheeconomyhaveseenacceleratedgrowth.However,thisgrowthhasnothelpedshifttheworkforcefromagriculturetonon-agriculturesectors.Asaresult,percapitaincomeforthepopulationdependentonagricultureisgrowingataveryslowpaceandthegapbetweentheruralandurbaneconomieshasexpandedsharply.Thesituationhas

nowbecomesoseriousthattheavailablelandisneitherabletoprovideadecentlivingnorimprovethestandardoflivingofthosedependentonit.

5.3 Thenaturalresourcebaseonwhichagriculturereliesisshrinkingandlandandwaterresourcesaredegrading.Foodgrainselfsufficiency,whichwasachievedthroughsignificantinvestmentoverthelastfourdecadesisalsounderthreat.Percapitaenergyintakeisdeterioratingwith21percentofthepopulationnoteatingenoughfoodtomeettheirminimumdailyenergyrequirement;thisisdespitehighgrowthinhouseholdincome.Domesticproduceisfindingithardtocompetewithimportsandtosucceedinexportmarkets.Interregionalvariationinagricultureproductivityishighandhasbeenrising.Foodqualityandfoodsafetyarebecomingseriousissues.Climatechange,othernaturalevents,outbreakofpestsanddiseases,andglobalinstabilityarecausingconcernstostabilityofagriculture.Postharvestmanagementandvalueadditionremainpoorandmarketsarenotveryfavourableforsmallholders.

5.4 Thepolicy,institutionalandtechnologicalresponsetoongoingchangesinagricultureisslowandsometimesinappropriateormissing.Thisishinderingtheharnessingofthelargepotentialofthesectorandatransition

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towardsdemandled,marketoriented,modernsciencecentricdiversifiedgrowth.

5.5 Indiahasalargepooloftrainedmanpowerandexpertiseindifferentareasofagricultureanditislaunchingsomelargescaleinitiativestoaddressagriculturalissues.However,thecountrystillneedshigherorderglobalexpertisetoadjusttothechangesinandaroundagricultureandtoaddressanticipatedproblemslikeclimatechangeandenergystress.Thecountrycanlearnandgainfromimprovedagriculturepractices,modelsofintegrationofsmallfarmersinthevaluechainandrelevantsuccessstoriesinothercountries.Also,therearesomeproblemsliketrans-boundarypestsanddiseaseswhereIndiacannotactaloneandwhereglobalorregionalinitiativesarerequired.

5.6 ComparedtothechallengesofIndianagricultureandtheexpectationsofIndia,theresourcesavailabletoFAOareverymodest.Therefore,itiscriticalforFAOtomakestrategicchoicestoprioritizeareasofworkinwhichithascomparativeadvantageinrelationtootherplayersandtopromotepartnershipswithotherdevelopmentstakeholders.

5.7 ThemainstrengthsofFAOinrelationtoIndia’sagricultureareitstechnicalexpertise,internationalreachandactivepresenceinmanydevelopingcountries,andreputationasacredibleUNagency.BasedonthesestrengthsandappreciatingtheneedsofIndia,the

broadareasidentifiedforFAOassistanceinIndiacanbegroupedunderthreemajorcomponents:

Component �:FacilitatemultilateralcooperationtoreducetherisktofoodsecurityandeconomicgrowththroughgreaterparticipationbyIndiainmultilateraltechnicalprogrammes.FAOcouldcontinuetosupportIndiatoaccessglobalpublicgoodsrelatedtocrucialareassuchastrans-boundarycrop,livestockandfishdiseasesandpests,fisherymanagement,foodsafetyandclimatechange.Moreover,FAOshouldassistIndia,whennecessary,tocontributetothedevelopmentoftheseglobalpublicgoods.AdvocacyforfoodandnutritionsecurityandtheroleofFAOasaneutraladviseroncontentiousissueswouldalsobepartofthiscomponent.FAOcansupportothercountriestoaccesscentresofexcellencewithinIndiaandintegratethesecentresintotheworkoftheorganization.Component �:SupportGovernmentofIndiatostrengthentheimplementationofnationalmissionsandspecificprogrammesaimedatreducingpovertyandachievingfoodandnutritionsecurity.FAOcouldprovidehighqualitytechnicalassistanceandcapacitybuildingfromnationalandinternationalsourcesto

a.

b.

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transferbestpractices,tolearnfromsuccessstoriesfromothercountriesandtobuildthecapacityofgovernmentofficerstodesignanddeliverprogrammes,includingreliableinformationmanagementsystems.FAOcouldalsoassisttoimprovelocalcapacitytomonitor,evaluateandundertakemidtermcorrectionsinlargegovernmentprogrammes.Component �:Pilotinnovativeapproacheswithgovernment,NGOandprivatesectorpartnersinagriculturalandruraldevelopment.Thishasbeenparticularlysuccessfulingroundwaterandirrigationmanagementandcouldbeexpandedtoincludethedevelopmentofvaluechainsinvolvingsmallscalefarmersand

c.

fishers.Similarly,upgradingpostharvestprocesses,valueaddition,andtheuseandapplicationofICTsinagriculturedemandinnovativeapproachesinvolvingsectorsbeyondgovernment.Thesuccessingroundwatermanagementcouldtriggerfurtherpilot-scaleworkrelatedtoclimatechangeadaptation.

5.8 FAOresourcesareextremelylimitedinrelationtotherequirementforimplementingtheproposedagenda.ItisthereforeproposedthatthefundsrequiredtodeliverComponents1and2areprovidedbytheGovernmentofIndiathroughaUnilateralTrustFundandthatFAOanditslocalpartnersexploreallianceswithfundingagenciesforfinancingofComponent3.

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Annex1:TheSectorPapers

A�.� FAO commissioned ten papers covering the following sectors:

Sl. No. Sector Papers1 CropProduction

2 Horticulture

3 Livestock

4 FisheriesandAquaculture

5 Forestry

6 WaterManagementforAgriculture

7 NaturalResourcesManagement

8 FoodandNutritionSecurityandFoodSafety

9 Agribusiness

10 KnowledgeGenerationandManagement

A�.� The authors were required to:

Scanandreviewdocumentspublishedbymajorstakeholdersinthesector.Analysetheprogrammesofthemajorstakeholdersinthesectortoidentifythecoredevelopmentstrategiespayingparticularattentiontothecentre-statedichotomyandprivateenterpriseinitiatives.Identifyanddocumentrelativeweaknesses,gaps,andimplementationhurdlesfacedbythesector.IdentifyspecificneedsthatFAOcouldcontributetoinamannerthatwouldcomplementexistingprogrammes.

a.b.

c.

d.

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14. Singh K.D.2008.BalancingFuelwoodproductionandConsumptioninIndia,InternationalForestryReview,SpecialIssue2008,London.

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Glossary

e Choupal -ItisaninitiativeofanIndiancompanyITCLimitedtoempowerthefarmerstoaccessmarketinformationthroughinternetanddevelopdirectlinkagesforprocurementofagriculturalproductslikesoybeans,wheat,coffee,andaquacultureproductslikeprawns.

Kabuli -CicerarietinumL.(KabuliGroup)

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