Content uploaded by Selladurai Muthusamy
Author content
All content in this area was uploaded by Selladurai Muthusamy on Jun 02, 2023
Content may be subject to copyright.
Chennai • Bangalore
ECONOMIC
EMPOWERMENT OF
TINY AGRICULTURAL
SECTOR IN INDIA
Dr. S Rajaram
Dr. M Selladurai
Dr. R Nandakumar
CLEVER FOX PUBLISHING
Chennai, India
Published by CLEVER FOX PUBLISHING 2022
Copyright © Dr. S Rajaram 2022
All Rights Reserved.
ISBN: 978-93-94457-18-8
This book has been published with all reasonable eorts taken to make the material
error-free after the consent of the author. No part of this book shall be used,
reproduced in any manner whatsoever without written permission from the author,
except in the case of brief quotations embodied in critical articles and reviews.
The Author of this book is solely responsible and liable for its content including
but not limited to the views, representations, descriptions, statements, information,
opinions and references [“Content”]. The Content of this book shall not constitute
or be construed or deemed to reect the opinion or expression of the Publisher or
Editor. Neither the Publisher nor Editor endorse or approve the Content of this book
or guarantee the reliability, accuracy or completeness of the Content published herein
and do not make any representations or warranties of any kind, express or implied,
including but not limited to the implied warranties of merchantability, tness for a
particular purpose. The Publisher and Editor shall not be liable whatsoever for any
errors, omissions, whether such errors or omissions result from negligence, accident,
or any other cause or claims for loss or damages of any kind, including without
limitation, indirect or consequential loss or damage arising out of use, inability to
use, or about the reliability, accuracy or suciency of the information contained in
this book.
iii
ABOUT THE BOOK
Agriculture has always been the backbone of the Indian economy and despite
concerted industrialization, in the last six decades; agriculture always occupies
a place of pride. The signicance of agriculture in the national economy arises
from the role it plays in India’s national income, and export. Large population of
India is dependent on agriculture for their livelihood. But, Indian agriculture is
low productive are with large number of disguised unemployed. Tiny agricultural
sectors were the solutions to many economic problems like urbanization, poverty,
unemployment and economic development. It also helps in rural development. But
development of entrepreneurship in the areas of agriculture requires special skills
like human development, knowledge of agriculture, knowledge of global agriculture
market. Indian agriculture sectors transformed a technology based with the help of
modernisation, fostering scientic cultivation, soil testing, applying fertilisers and
pesticides coping pattern has been changed and modernised according to the existing
demand of the products. Continues and sustainable research in seeds which suitable
for any climate and weather conditions. Flow of investment helps to improve the
agriculture sector as an industrial signicance with potential division of the country.
Government policy regarding the credit facilities and motivate the educated persons
involved in agricultural tiny sectors. Hence, there would be an extensive potential
for the growth of agricultural tiny sectors in India. Agriculture in India today is
embarrassed by a range of factors that created history by producing 308 million
MT of food grains in 2020-21, but this has been accompanied by land degradation,
declining size of land holdings and many other related problems. Agricultural tiny
sector is the vital mechanism which helps to create agriculture a more smart and
protable endeavour. The agricultural tiny sector has a large prospective to contribute
to the national income and also providing direct employment and income to the
numerically larger and vulnerable section of the society. The main objective of the
seminar is to enumerate the economic empowerment of tiny agricultural sectors and
sustainable development of the agricultural community people. Agro based tiny
industries create more employment opportunities to eradicate the unemployment
problems and economic contribution of the tiny agriculture sectors in India will
create more impact in the GDP growth. NABARD provides nancial assistance to the
agriculture community to uplift the farmer’s livelihoods. The growth and expansion
of agro-based industries should form an inseparable part of the NABARD programme
of economic and industrial development of the country. Therefore these books bring
Economic empowerment of Tiny agricultural sectors in India in futures perceptive.
Dr.S.Rajaram
iv
CONTENTS
ROLE OF NABARD .......................................................................1
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL
SECTOR IN INDIA- AN OVERVIEW ................................................................. 3
THE ROLE OF NABARD TOWARDS STATE CO-OPERATIVE
BANKS .................................................................................................................. 10
ROLE AND IMPORTANCE OF NABARD IN THE DEVELOPMENT
OF THE RURAL SECTOR ..................................................................................18
ROLE OF NABARD IN PROVIDING FINANCE FOR AGRICULTURE
AND RURAL DEVELOPMENT IN INDIA WITH SPECIAL
REFERENCE TO TAMIL NADU ....................................................................... 26
AGRICULTURE SECTOR ITS ROLE AND IMPORTANCE IN
INDIAN ECONOMY ........................................................................................... 31
ROLE OF NABARD IN RURAL DEVELOPMENT IN INDIA ..................... 40
IMPACT OF INTEGRATED WATERSHED DEVELOPMENT
PROGRAMME A CASE OF TAMIL NADU ..................................................... 47
ROLE OF NABARD IN AGRICULTURAL DEVELOPMENT IN
TAMIL NADU....................................................................................................... 55
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL
SECTOR ................................................................................................................60
AWARENESS AND PROMOTIONS OF NABARD ...............66
FARMER’S AWARENESS ON ROLE OF NABARD IN PROVIDING
FINANCIAL HELP THROUGH KERALABANKS .........................................67
AWARENESS OF AGRICULTURAL MOBILE APPLICATIONS
AMONG THE TINY FARMERS ........................................................................77
AGRICULTURE PRODUCTIVITY TRENDS IN AND AROUND
COIMBATORE WITH RESPECT TO SELECTED CROPS ........................... 83
CONTENTS
v
EFFECTIVE WATER RESOURCE PLANNING AND
MANAGEMENT FOR SUSTAINABLE AGRICULTURE ............................. 95
PROMOTION OF GREEN REVOLUTION FOR THE GROWTH OF
AGRICULTURAL SECTORS: A PHILOSOPHICAL BASIS THROUGH
THE LENS OF EMMANUEL LEVINAS ........................................................ 101
AWARENESS AND PERCEPTION TOWARDS VARIOUS SCHEMES
OF NABARD AMONG RURAL FARMERS WITH SPECIAL
REFERENCE TO MALAPPURAM DISTRICT ............................................. 107
MARKETING AND FINANCE OF NABARD ...................... 115
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO
EXPORT: ITS IMPACT ON ECONOMIC GROWTH .................................... 116
THE MICROFINANCE - “INITIATIVES OF NABARD” IN
CONTEXT TO AGRICULTURE SECTOR ..................................................... 129
COMMERCIAL CHIVE CULTIVATION IN MANIPUR: BOON FOR
SMALL FARMERS, RURAL TRANSFORMATION AND AGONY OF
PANDEMIC ......................................................................................................... 134
EXISTING SCENARIO OF AGRICULTURE SECTOR IN WOKHA
DISTRICT OF NAGALAND ............................................................................ 142
PERFORMANCE OF AGRICULTURE SECTOR IN INDIA ....................... 150
AGRICULTURE CREDIT SANCTIONED BY FINANCIAL
INSTITUTIONS IN INDIA AND TAMIL NADU ..........................................157
THE EFFECTIVENESS OF ATMA NIRBHAR BHARAT SCHEME
ON AGRICULTURAL SECTOR: FARMER PERSPECTIVE ....................... 166
EXPORT PERFORMANCE OF THE AGRICULTURAL PRODUCTS
IN INDIA – WITH SPECIAL REFERENCE TO BRICS COUNTRIES .......174
VALUE ADDED AGRICULTURE EXPORTS IN INDIA-WITH
SPECIAL REFERENCE TO SPECIAL CATEGORY PRODUCTS .............. 182
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY
AMONG THE MAO-NAGA FARMERS OF NORTH-EAST INDIA ........... 191
INFLUENCE OF AGRICULTURAL SECTOR ON ECONOMIC
GROWTH OF BIMSTEC COUNTRIES .......................................................... 204
Role of NABARD
3
ROLE OF NABARD IN DEVELOPMENT
OF AGRICULTURAL SECTOR IN INDIA-
AN OVERVIEW
Dr. J. LILLY
Professor, Department of Commerce with Information Technology
Dr.N.G.P. Arts and Science College, Coimbatore
R. VISHNUPRIYA
Assistant Professor, Department of Commerce with Business Process Services
PSG College of Arts & Science, Coimbatore
ABSTRACT
Agricultural development is one of the most powerful tools to end extreme poverty,
boost shared prosperity, and feed a projected 9.7 billion people by 2050. Growth in
the agriculture sector is two to four times more eective in raising incomes among
the poorest compared to other sectors. It is essential to addressing the need to feed
a growing population and improving their nutrition. When farmers can grow more
food and earn more income, they can achieve self-suciency and live better lives.
Improvements in agricultural productivity create social and economic ripple eects.
The Farmers might be in need of Agricultural credits to increase their production. To
overcome those economic eects the RBI established NABARD, as a Development
Bank, is mandated for providing and regulating credit and other facilities for the
promotion and development of agriculture, small scale industries, cottage and village
industries, handicrafts and other rural crafts and other allied economic activities in
rural areas with a view to promoting integrated rural development and securing
prosperity of rural areas, and for matters connected therewith or incidental thereto.
Hence, The paper analyses the role and function of NABARD in agriculture and rural
development. It also throws light on NABARD’s present project highlights and its
schemes for rural development.
Keywords: NABARD, Rural Development, Agricultural Productivity, Self-
suciency, Agricultural Credits.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
4
Introduction
Agriculture in India is the means of livelihood of almost two-thirds of the workforce
in the country and it is considered to be the most important sector of the Indian
Economy. Agriculture and allied activities constitute the single largest contributor
to the Gross Domestic Product, almost 33 percent of it. This increase in agricultural
production has been brought about by bringing additional area under cultivation,
extension of irrigation facilities, the use of improved high-yielding variety of seeds,
better techniques evolved through agricultural research, water management, and plant
protection through judicious use of fertilizers, pesticides and cropping practices.
Agriculture development implies giving assistance to farmers or crop producers
by providing them various agricultural support. Providing security, helping in the
research area, employing advanced techniques, checking pests, and facilitating
diversity, they all fall under the category of agriculture development.
The agricultural sector has potential to create economic growth in rural areas. It
generates job opportunities in adding value (as in the food processing industry), in
bringing agricultural products to the consumer (market linkages), and in providing
support (infrastructure, information, quality control and training). In this regard,
farmers were availing Rural Credits or Agricultural Credits.
Agricultural credit, which is also commonly referred to as agricultural nance,
is an important component of the economy, especially in countries with arable
land since agricultural products can be exported. Agricultural credit programs not
only help farmers and other agricultural producers, but also support ranchers and
rural homeowners with their nances. From the very beginning the prime source
of agricultural credit in India was money lenders. After independence the Govt.
adopted the institutional credit approach through various agencies like co-operatives,
commercial banks, regional rural banks etc. to provide adequate credit to farmers,
at a cheaper rate of interest. Hence recently, a new Bank was established by RBI for
the purpose of providing agricultural credits to the farmers.
Research Methodology
The researcher has adopted the descriptive form of research in making this report.
Secondary sources of information have been used from the various articles and ocial
websites.
Research Plan
Aims and Objectives
The aim of this paper has been to analyze the role of NABARD and the relevant
concepts and their evolution have also been dealt with in an organized manner.
Scope and Limitations
The scope of this paper the researcher will discuss the topic which is the rural
development bank and will try to analyze through its various schemes and funds.
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL SECTOR IN INDIA
5
NABARD - Overview
National Bank for Agriculture and Rural Development (NABARD) is an apex
regulatory body for overall regulation of regional rural banks and apex cooperative
banks in India. It is under the jurisdiction of the Ministry of Finance , Government
of India. The bank has been entrusted with “matters concerning policy, planning,
and operations in the eld of credit for agriculture and other economic activities in
rural areas in India”. NABARD is active in developing & implementing Financial
Inclusion. It was established on the recommendations of B.Sivaraman Committee
(by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for
Agriculture and Rural Development Act 1981 with the vision “ Development Bank
of the Nation for Fostering Rural Prosperity”. It replaced the Agricultural Credit
Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of
India, and Agricultural Renance and Development Corporation (ARDC).
The Major role of NABARD is as follows
●NABARD facilitates rural prosperity by renancing and promoting institutional
development.
●Acts as a coordinator in the operations of rural credit institutions
●The bank works as an evaluator and inspector for the client banks.
●Extends assistance to the government, the Reserve Bank of India and other
organizations in matters relating to rural development
●Oers training and research facilities for banks, cooperatives and organizations
working in the eld of rural development
●Helps the state governments in reaching their targets of providing assistance to
eligible institutions in agriculture and rural development
●Acts as regulator for cooperative banks and RRBs identication of exploitable
potentials under agriculture and other activities available for development
through bank credit.
●While the bank moves in the direction of rural development, it also extends its
help to the centre, the Reserve Bank of India, Regional Rural Banks, and other
related agencies.
●Apart from all the regulatory and development functions, NABARD also has a
portfolio of Natural Resource Management Programmes.
●The institution also helps the Self-Help Groups (SHGs) through its SHG Bank
Linkage Programme.
●It not only monitors client banks but also watches over all those projects which
are under renance through it.
●Renancing banks for extending loans for investment and production purposes
in rural areas.
●Providing loans to State Government/Non Government Organizations (NGOs)/
Panchayati Raj Institutions (PRIs) for developing rural infrastructure.
●Supporting credit innovations of Non Government Organizations (NGOs) and
other non formal agencies.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
6
●Extending formal banking services to the unreached rural poor by evolving a
supplementary credit delivery strategy in a cost eective manner by promoting
Self Help Groups (SHGs)
●Promoting participatory watershed development for enhancing productivity and
protability of rain fed agriculture in a sustainable manner. On-site inspection
of cooperative banks and Regional Rural Banks (RRBs) and o-site surveillance
over health of cooperatives and RRBs.
Role of NABARD
NABARD is the apex institution in the country which looks after the development
of the cottage industry, small industry and village industry, and other rural industries.
NABARD also reaches out to allied economies and supports and promotes integrated
development. Nowadays the long term and short term credit needs of these institutions
are also being met by the National Bank for Agricultural and Rural Development
(NABARD). The scope of the operations of NABARD is large indeed.
Besides providing nance to credit institutions, it is providing innovations in
regard to formulation of schemes, monitoring of implementation, evaluation of results
and evolution of suitable supporting structures of all kinds of agricultural activities.
It is performing the various functions assumed by it smoothly and eciently and to
help NABARD discharge its duty, it has been given certain roles as follows:
1. Serves as an apex nancing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural
areas
2. Takes measures towards institution building for improving absorptive capacity
of the credit delivery system, including monitoring, formulation of rehabilitation
schemes, restructuring of credit institutions, training of personnel, etc.
3. Co-ordinates the rural nancing activities of all institutions engaged in
developmental work at the eld level and maintains liaison with Government of
India, State Governments, Reserve Bank of India (RBI) and other national level
institutions concerned with policy formulation
4. Undertakes monitoring and evaluation of projects renanced by it.
5. The Bank renances the nancial institutions which nance the rural sector.
6. It also keeps a check on its client institutes
7. It regulates the institution which provides nancial help to the rural economy.
8. It provides training facilities to the institutions working in the eld of rural
upliftment.
NABARD’s renance is available to State Co-operative Agriculture and Rural
Development Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural
Banks (RRBs), Commercial Banks (CBs) and other nancial institutions approved
by RBI. While the ultimate beneciaries of investment credit can be individuals,
partnership concerns, companies, Stateowned corporations or co-operative societies,
production credit is generally given to individuals. NABARD is also known for
its ‘SHG Bank Linkage Programme which encourages India’s banks to lend to
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL SECTOR IN INDIA
7
self-help groups (SHGs). Because SHGs are composed mainly of poor women, this
has evolved into an important Indian tool for micronance. By March 2006, 22
lakh SHGs representing 3.3 core members had to be linked to credit through this
programme
Functions of NABARD
●In order to build an empowered and nancially inclusive rural India, NABARD
has specic departments that work towards the desired goals.These departments
can be collectively categorized into four majors units:
●Credit Functions :These are the functions that the bank undertakes as the provider
of credit facilities in rural areas. Under this, NABARD provides, regulates,
monitors the credit ow of rural India. It further consists of many departments
that perform the specied functions.
●Financial Functions : These include providing term loans to client banks,
artisans, handicraft industries, food parks, processing units, etc.
●Supervisory Functions: It involves all those tasks that the bank performs to
supervise all the banks, credit, and non-credit societies.
●Development Functions: Under these functions, NABARD helps other rural
banks in preparing their action plans. It also helps the farm and non-farm sectors.
●The nancial support necessary to build rural infrastructure is provided by
NABARD.
●Preparation of district-level credit plans by NABARD are used to guide and
motivate the banking industry to achieve required targets.
●NABARD also supervises the Regional Rural Banks (RRBs) and Cooperative
Banks along with developing their banking practices and integrating them to the
Core Banking Solution (CBS) platform.
●NABARD also helps handicraft artisans sell their products by training and
providing a marketing platform for them.
●NABARD has partnered with various leading global organizations and institutions
aliated with the World Bank that have played a role in transforming agriculture.
●It oers advisory services and nancial assistance provided by these international
partners to help in consultation with rural development and other agricultural
practices.
Project Highlights of NABARD
●Adaptation Fund Under United Nations Framework Convention
●On Climate Change (UNFCCC)
●NABARD Infrastructure Development Assistance (NIDA)
●Farmer Producers Organisation
●Rural Infrastructure Development Fund
●Green Climate Fund
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
8
Government Sponsored Schemes
The Government of India encourages farmers in taking up projects in select areas by
subsidizing a portion of the total project cost. All these projects aim at enhancing capital
investment, sustained income ow and employment areas of national importance.
NABARD has been a proud channel partner of the Government in some of these
schemes shown in this section. Subsidy as and when received from the concerned
Ministry is passed onto the nancing banks.
●Dairy Entrepreneurship Development Scheme
●Commercial production units of organic inputs
●Agriclinic and Agribusiness Centres Scheme
●National Livestock Mission
●GSS – Ensuring End Use of Subsidy Released
●Interest subvention Scheme
●New Agricultural Marketing Infrastructure
Conclusion
From the above discussion it shows that NABARD is working for the 360 degree
development of rural India.The parliament created the NABARD act and the
Apex bank in order to aid the rural farmers that had long been neglected by the
Government. There was such an imitation to uplift industries and capital markets that
these agricultural sectors were being grossly neglected. Even the apex bank of the
country, the Reserve Bank of India was so keen in other responsibilities and duties
that it could not give adequate assistance to the rural farmers and their population
which mostly consisted of artisans, small business owners and other small enterprises.
Every year the nancial assistance received by NABARD and the disbursement made
out of it are increasing. Thus this led to the formation of the Rural Apex bank now
known as NABARD. It is, in brief, an institution for the purpose of renance; with
the complementary work of directing, inspecting and supervising the credit- ows
for agricultural and rural development.
References
1. 3726-with-cover
2. Innovative Extension Approaches in Technology Transfer - B. S. Hansra -
Google Books
3. NABARD - National Bank For Agriculture And Rural Development
4. NABARD: Functions, Roles & Achievements (jagranjosh.com)
5. National Bank For Agricultural And Rural Development Economics Essay
(ukessays.com)
6. Paramasivan, C., & Selladurai, M. (2017). Technopreneurship education: Teach
and train the youths. Asian Journal of Management, 8(4), 1173-1176.
7. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and
its Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL SECTOR IN INDIA
9
8. Role of NABARD in agricultural development. (cabdirect.org)
9. S.Rajaram (2016) Prole of Micro Insurance Products-Individual v/s Group
Categories, Economic Challenger., pp.66-70
10. S.Rajaram (2017) Empowering Indian Economy Through GST in India,
Economic Challenger., Issue 77., pp.46-50
11. S.Rajaram and J.Robert Edwin Chester (2020) Analytical Study on Visible
balance of payment in India, Studies in Indian Place Names., Vol.40., Issue.12.,
pp.129-132
12. S.Rajaram and J.Robert Edwin Chester (2020) Organisational Prole of
Women owned Micro Enterprises in Kaniyakumari District., Vol.40., Issue.18.
pp.2057-2059
13. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study On Satisfaction Of
Tourists Visiting Yercaud Of Salem District. Asia Pacic Journal of Research In
Business Management, 4(3), 1.
10
THE ROLE OF NABARD TOWARDS
STATE CO-OPERATIVE BANKS
Ms. RIWEU KENYE
Ph.D. Research Scholar
Dr. J. SURESH KUMAR
Assistant Professor, Department of Economics,
St. Joseph University, Nagaland
ABSTRACT
The Government of India established the National Bank for Agriculture and Rural
Development (NABARD) on 12thJuly, 1982.It is the apex bank for Agriculture and
Rural Development in India. It was established with the main objective to develop
rural sector of the country. It provides credit facilities for agriculture, village, small
scale and cottage industries. NABARD renances the Commercial Banks, Central
Co-operative Banks, State Co-operative Banks, Regional Rural Banks and Land
Development banks.The Reserve Bank of India (RBI) has regulated the Co-operative
banks under the Banking and Regulation Act of 1949 and Banking Laws (Application
to Co-operative Societies) Act, 1965. Ever since time immemorial, NABARD has
played a vital role in renancing the State Cooperative Banks. It also caters towards
protecting the interest of the present and future depositors. NABARD also ensures
that the banks under its supervision are in compliance with the provisions of relevant
rules and regulations.This paper attempts to study the role of NABARD towards
State Co-operative Banks. It will also study the renancing policy of NABARD
towards State Co-operative Banks. Furthermore, suggestions will be given for policy
measures on the basis of the study results.
Introduction
The National Bank for Agriculture and Rural Development (NABARD) is the apex
institutions which regulates and supervise the functions of State co-operative banks
by taking various initiatives in association with Government of India and the Reserve
Bank of India to improve the health of co-operative banks. NABARD is entrusted
with a pivotal role to plan policies and provide renancing facilities to nancial
THE ROLE OF NABARD TOWARDS STATE CO-OPERATIVE BANKS
11
institutions in rural areas. More than 50 per cent of the rural credit is disbursed by
the Co-operative Banks. These co-operative banks are nancial institutions which
are regulated by the Reserve Bank of India (RBI) under the Banking and Regulation
Act, 1949 and Banking Laws (Application to Cooperative Societies) Act, 1965. They
are registered under the State Cooperative Societies Act of 1912 and serves under the
motto of ‘no-prot-no-loss’. In India, the co-operative banking system has two broad
segments of urban and rural co-operatives and forms an integral part of the Indian
nancial system and enlarging institutional credit.
NABARD: An overview
India is an agrarian economy where a vast majority of the population lives in rural
areas. About 70% of the populations are dependent on agriculture for their livelihood
where a lot of them rely on institutional credits for agricultural activities. In this regards,
institutional credits play a pivotal role towards the integrated rural development of the
country.Hence, it was essential to form a strong organization to formulate and implement
policies and programmes, extend nancial assistance to various institutions providing
credit facilities in rural areas.
On 30thMarch 1979, under the Chairmanship of ShriB.Sivaraman, former
member of Planning Commission, Government of India, a committee was formed
by the Reserve Bank of India (RBI). This was due to the insistence of the Government
of India to assess the Arrangements for Institutional Credit for Agriculture and Rural
Development (CRAFICARD). As per the interim report submitted by the Committee
on 28thNovember 1979, there was a need to form a new organizational device to
provide integrated rural development in the country. The committee recommended
the formation of NABARD to cater to the rural needs, provide nancial assistance
and credit facilities to the rural people. This was approved by the Parliament under
Act 61 of 1981 and on 12 July 1982, NABARD came into existence. Thereafter,
AgriculturalRenance and Development Corporation (ARDC), which is a bank to
develop the agricultural sector and rural development under the Reserve Bank of
India (RBI) was transferred to NABARD.
Ever since its inception, NABARD has played a vital role towards the development
of the rural areas and towards those institutions which are established to provide
credit facilities to rural people. The state co-operatives are one of those institutions
which functions under the NABARD. It is the apex institution at the National Level,
providing credit facilities to artisans, farmers, credit institutions, small, village and
cottage industries, handicrafts and other rural Crafts. NABARD gives full attention
and directs integrated rural development.It also plays a vital role to renance facilities
to State Land Development Banks (SLDBs), State Co-operative Banks, (SCBs),
Regional Rural Banks (RRBs) and Commercial Banks (CBs) for rural development.
It works both at the state and national level. It coordinates agencies, trains bank
personnel etc. It also inspects monitors and evaluate various projects.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
12
Objective of the study
1. To study the role of NABARD towards the State Co-operative Banks.
2. To assess the nancial performance of state cooperative banks.
3. To evaluate the health indicators of state cooperative banks.
Scope of the study
The study made an attempt to enlighten the role of NABARD towards the State
Co-operative Banks. The study covered aspects such as objectives, functions,
management, and nancial and health indicators of state cooperative banks.
Research methodology
Data Collection and Statistical techniques
This paper is based on secondary data and the data are analyzed both qualitatively
and quantitatively. The information is gathered from sources such as bank’s annual
reports, internet sources, books, nancial statements, magazines, records, journals,
research papers, research articles and web sources. The period of the study will cover
from the nancial year 2019-20 to 2020-21.
NABARD’S Role towards state co-operative banks
NABARD provides renance facilities to State Co-operative Banks, (StCBs), for
development purposes in rural areas. It provides short-term, medium-term and long-
term credit to State Co-operative Banks. NABARD provides short term credit up to 18
months to State cooperative banks for seasonal agricultural operations, marketing of
crops, and distribution of fertilizers and working capital requirements of cooperative
sugar mills. As per, Section 35(6) of the Banking Regulation Act, 1949, NABARD
is empowered to conduct inspection of State Cooperative Banks (StCBs). During
2019-20, NABARD conducted statutory inspections of 338 banks with reference to
nancial position as on 31st March, 2019 in which 32 StCBs were also included. Out
of 34 StCBs, the RBI has issued licence to 33 StCBs. Only Daman & Diu StCBs
are yet to be licensed. NABARD has taken steps towards recapitalisation of these
banks to make them eligible for issue of banking license by conducting a number of
workshops to improve the quality and eectiveness of statutory audits and inspections.
Section 35(6) of the Banking Regulation Act, 1949, empowers NABARD to conduct
inspection of State Cooperative Banks (StCBs). NABARD supports the nancial
inclusion eorts of State Cooperative Banks.NABARD provides nancial assistance
to Co-operative Banks (StCBs/DCCBs). The primary objective here was to expand
their lendable resources and enable their diversication into a variety of business
operations.Additional Short Term Renance for Seasonal Agriculture Operations, over
and above the normal ST(SAO) limit is provided to StCBs.NABARD provides long-
term renance to State Cooperative Banks to supplement their resources for providing
adequate credit for supporting investment activities of farmers and rural artisans, etc.
THE ROLE OF NABARD TOWARDS STATE CO-OPERATIVE BANKS
13
NABARD provides medium-term credit limits for conversion of short-term crop loans
advanced for nancing seasonal agricultural operations (SAO) to State Co-operative
Banks for providing relief to the farmers whose crops have been damaged due to
natural calamities.
To strengthen the activities of cooperatives, during FY2021, ₹18.7 crore was
utilized from Cooperative Development Fund of NABARD. This is shown in the
table below:
Table 1: NABARD’S initiatives to State Co-operative Banks
NABARD’S INITIATIVES TO STATE CO-OPERATIVE BANKS, (As per FY 2021)
Rs. in Crore
Sl. No. 1. 2. 3. 4. 5. 6. 7.
Schemes Financial
Assistance
for Training
of Cooper-
ative Banks
Personnel
PACS
Develop-
ment Cells
(PDCs)
stakeholder
engagement
events
(meetings/
seminars/
conferences/
workshops)
exposure
visits
infrastruc ture
develop ment
of PACS
PACS
computer-
ization
operations of
the Centre for
Professional
Excellence in
Cooperatives
(C-PEC)
Amount ₹7 crores ₹0. 4 crore ₹0. 3 crore ₹0. 4 crore ₹2. 6 crore ₹5 crore ₹1. 2 crore
Source: Ensure Portal, NABARD.
In the above table, it is shown that Financial Assistance for Training of
Cooperative Banks Personnel₹7 crores. PACS Development Cells (PDCs) is ₹0.4
crore, stakeholder engagement events (meetings/seminars/conferences/ workshops)
is ₹0.3 crore, exposure visits is ₹0.4 crore, infrastructure development of PACS₹2.6
crore, PACS computerization is ₹5crore and operations of the Centre for Professional
Excellence in Cooperatives (C-PEC) is ₹1.2 crore.
NABARD conducts meetings to review the performance and discuss the issues
concerning state cooperative banks. During the meeting, latest developmental
schemes and policies are being discussed.
Performance indicator of state co-operative banks as per nabard
annual reports of 2019-2020.
In India, as on 31st March, 2019, there are 33 State Co-operative Banks, out of which
23 of them are listed under the second schedule of the Reserve Bank of India. State
co-operative Banks have a total of 1, 321 branches spread across 33 States or Union
Territories.
The performance indicators of the State Co-operative Banks have been analyzed
in the table given below:-
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
14
Assets and Liabilities of State Cooperative Banks (Item as on
31st March 2018 and 2019)
Table No. 2
Item As on end-march
(amount in rs. In crore)
Percentage
variation (%)
Year 2018 2019 2018-19
Assets
Cash and bank balances 9, 288 11, 602 25
Investments 74, 398 76, 458 3
Loans and advances 1, 31, 934 1, 48, 625 13
Accumulated losses 527 471 -11
Other assets 10, 694 11, 793 10
Liabilities
Capital 5, 542 6, 104 10
Reserves 11, 240 12, 441 11
Deposits 1, 23, 534 1, 35, 392 10
Borrowings 72, 170 79, 358 10
Other liabilities 14, 355 15, 654 9
Total Assets/Liabilities 2, 26, 841 2, 48, 949 10
Source: Ensure Portal, NABARD
As on 31st March 2019, the consolidated balance sheet of StCBs registered a
y-o-y growth of 10%. More than 50% of the growth constitutes advances displayed
on the assets side and deposits which are shown on the liabilities side with a registered
y-o-y growth of 10% and 13% respectively. There is an increase in the CD (Credit to
Deposit) ratio of StCBs from 107% as on 31st March 2018 to 110% as on 31st March
2019.
The cash and bank balances of StCBs increased from ₹9, 288 crore as on 31st
March 2018 to ₹ 11, 602 crore as on 31st March 2019 indicating a 25% increase from
2018-2019. Investments increased from ₹74, 398 crore as on 31st March 2018 to ₹76,
458 crore as on 31st March2019 indicating a 3 percent growth rate. The amount of
loans and advances increased from ₹1, 31, 934 crore as on 31st March 2018 to ₹1,
48, 625 crore as on 31st March 2019 indicating a 13 percent growth rate. Amount
wise accumulated losses declined from ₹527 crore as on 31st March 2018 to ₹471
crore as on 31st March 2019.
The share capital of StCBs as per 31st March 2018 was increased from ₹5, 542
crore to ₹6, 104 crore as on 31st March2019 indicating 10% registered growth rate.
The cash reserves increased from ₹11, 240 crore as on 31st March 2018 to ₹ 12, 441
THE ROLE OF NABARD TOWARDS STATE CO-OPERATIVE BANKS
15
crore as on 31st March2019 indicating an 11 percent growth rate. The total deposits
increased from ₹1, 23, 534 crore as on 31st March 2018 to ₹1, 35, 392 crore as on
31st March 2019 indicating a 10 percent increase in the deposits. The amount of
borrowings declined from ₹72, 170 crore as on 31st March 2018 to ₹79, 358 crore
as on 31st March2019 indicating a 10 per cent decline in borrowings. The Capital
to Risk Weighted Assets Ratio (CRAR) of 31 StCBs was more than 9% as on 31st
March 2019 while Puducheryand Goa state cooperative banks were lesser than 9%.
The number of StCBs reporting accumulated losses declined from 8 as on 31
March 2018 to 6 as on 31st March 2019. The Net Prot of StCBs increased from ₹1,
030 crore during 2017-18 to ₹1, 166 crore during 2018-19. During 2017-18, all StCBs
except Assam StCB posted net prot. However, in 2018-19, three StCBs namely
Jharkhand, Arunachal Pradesh and PuducherryStCBs incurred net losses.
Overview of Short-Term Co-operatives Performance of State
Co-operative Banks
(Item as on 31st March 2020)
PERFORMANCE INDICATORS
Table No: 3
Particulars 31 March 2019
Amount (crore)
YoY growth (%)
31 March 2020
Amount (`crore)
YoY growth (%)
Assets
Loans and advances 1, 83, 633 (1, 48, 625) 11. 6 1, 99, 943 8. 9
Investments 1, 03, 131 (76, 458) 0. 3 1, 12, 828 9. 4
Liabilities
Sharecapitaland reserves 21, 226
(18, 545)
9. 9 21, 900 3. 2
Deposits 1, 92, 693 (1, 35, 392) 6. 3 2, 10, 342 9. 2
Borrowings 84, 073
(79, 358)
10. 2 85, 723 2. 0
Total Assets or Liabilities 3, 17, 074
(2, 48, 949)
7. 6 3, 40, 267 7. 3
Source: Ensure Portal, NABARD
The state cooperative banks (StCBs) mobilized resources from deposits (62%)
and borrowings (25%) as on 31st March 2020, of which NABARD’s share was 90%.
Current and Savings Account (CASA) deposits, known as low-cost deposits, formed
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
16
less than 18% of total deposits. On the assets side, gross loans outstanding had a
share of 59%, followed by investments (33%). Sizeable share (43%) of the gross
loans outstanding was towards agriculture sector. Crop loans accounted for 78% of
agricultural loans. Statutory liquidity ratio (SLR) securities accounted for 50% of
the total investments. The CRAR of StCBs as a whole at 11.8% was greater than the
9% norm as on 31 March 2020, though Puducherry(7.3%), Goa (3.4%), and Kerala
(7.3%) lagged behind. All StCBs (barring Arunachal Pradesh) earned net prots.
In fact, the StCBs of Jharkhand and Puducherry, which reported losses in FY2019,
posted net prots of `2.6 crore and `23.4 crore, respectively in FY2020. Seven StCBs
had accumulated losses amounting to `1, 232 crore. While Nagaland StCB wiped out
its accumulated losses, Kerala StCB posted accumulated losses of `776 crore after
13 district central cooperative banks (DCCBs) were merged with it. Asset quality of
StCBs deteriorated with the share of sub-standard assets being 3.9% of total advances
followed by doubtful assets (2.2%), and loss assets (0.6%). The provision coverage
ratio (PCR) was 55% as on 31 March 2020.
Findings
1. NABARD sanctioned aggregating of Rs.66, 418crore short term credits for
production to Cooperative Banks and Regional Rural Banks (RRBs) during
2012-13.
2. Investment Credit for capital formation in agriculture & allied sectors, non-farm
sector activities and services sector to State Co-operative Banks, Commercial
Banks and Regional Rural Banks reached a level of Rs.17, 674.29 crore as on 31st
March, 2013 registering an increase of 14.6 per cent, over the previous year.
3. NABARD provides short term credit up to 18 months to State cooperative banks
for seasonal agricultural operations, marketing of crops, and distribution of
fertilizers and working capital requirements of cooperative sugar mills.
Conclusion
NABARD plays a constructive role in renancing the state co-operative banks (StCBs),
and other nancial institutions approved by RBI. While the ultimate beneciaries
of investment credit can be individuals, partnership concerns, companies, State-
owned corporations or co-operative societies, production credit is generally given
to individuals. The information gathered so far proves that NABARD has played a
vital role towards the State Co-operative Banks.
References
1. Anoop Kumar Singh, Dr.Anupam Vidyarthi-2015.‘Role of NABARD in Rural
Infrastructure’. Vol-1, Issue-3, IJARIIE-ISSN(O)-2395-4396.
2. M.Kumudini, January – 2017.‘The Role of NABARD in the Rural Development’.
Volume-6, Issue-1, ISSN No 2277 – 8160.
THE ROLE OF NABARD TOWARDS STATE CO-OPERATIVE BANKS
17
3. Rajkumar, K Prabhakar.‘A study on the role of NABARD in providing renance
for agriculture and rural development in India with special reference to Tamil
Nadu.’
4. S.Rajaram (2016) Prole of Micro Insurance Products-Individual v/s Group
Categories, Economic Challenger., pp.66-70
5. Paramasivan, C., & Rajaram, S. (2015). JEEVAN MADHUR MICRO
INSURANCE IN SOUTH ZONE-A BIRDS EYE VIEW STUDY.
6. C, PARAMASIVAN & Subbiah, Rajaram & Professor, Assistant. (2016).
Jeevan Mangal Micro Insurance in India-A Performance Approach in South
Zone. International Journal of Trend in Research and Development. 3. 320-323.
7. Subbiah, Rajaram. (2020). ANALYTICAL STUDY ON VISIBLE BALANCE
OF PAYMENT IN INDIA. 40. 129-132.
8. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
9. Subbiah, Rajaram. (2020). AAM AADMI BIMA YOJANA MICRO
INSURANCE PERFORMANCE ANALYSIS IN SOUTH ZONE.
10. Priyadharshini, J., & Muthusamy, S. (2016). Green Marketing: Solar Energy
Opportunities and Challenges in India. International Journal of Research &
Business Innovation, 4(1).
11. Selladurai, M., & Priyadharshini, J. (2015). Opportunities and Challenges of
Rural Entrepreneurship in India. International Journal of Multidisciplinary
Educational Research, 4(1), 74-81.
12. Priyadharshini, J., & Selladurai, M. (2016). A study on high speed rails in India.
Int J Trend Res Dev, 3(3).
18
ROLE AND IMPORTANCE OF NABARD
IN THE DEVELOPMENT OF THE
RURAL SECTOR
Dr. B. SARANYA
Associate Professor & Head
KALPANA C
Ph.D Research Scholar, Department of Commerce
PSG College of Arts & Science, Coimbatore
ABSTRACT
India is a rural nation with a two-thirds rural population and a 70% rural workforce.
Rural economies generate 46% of national revenue. Despite urbanization, over half
of India’s population is expected to remain rural even in 2050. Thus, rural economies
and demographic growth is critical to the nation’s growth and functioning. Rural
economies and jobs have always revolved around agriculture and its production.
The Indian Government encourages farmers to undertake projects by subsidizing
a fraction of the overall cost. All of these initiatives attempt to increase the capital
investment, revenue and employment. NABARD being a proud government channel
partner, assists in funding banks to get subsidies from the relevant ministries. Changes
in rural production and employment sectoral composition over time; connections
between these changes and consequences for rural output growth; and income
disparities within and between rural and urban areas have been extensively taken
into consideration in the study, to help analyze the role and importance of NABARD
in the development of the rural sector.
Keywords: NABARD, Rural Sector Development, Rural Infrastructure Development
Fund, NABARD Infrastructure Development Assistance
ROLE AND IMPORTANCE OF NABARD
19
Introduction
While India’s cities have risen tremendously over the last two decades, the rural
regions have not seen the same growth. The rural economy must expand for India’s
economy to thrive. Malnutrition, illiteracy, unemployment, and a lack of essential
infrastructure, such as schools, colleges, hospitals, and sanitation, persist in rural
regions. This has resulted in the migration of young people from rural areas to urban
areas. In order for inclusive development to occur, our towns and villages must
expand in tandem with cities and their quality of living must increase. If rural India
is impoverished, then India is poor as well. For as long as anybody can remember,
the supply of credit in India has been based on the money lending industry. The
money lender would take advantage of his lack of education, illiteracy, and nancial
necessity. In 1904, initial cooperative credit unions were established at the village
level to free him from the clutches of money lenders. Credit was thereafter provided
by higher nuancingorganizations. Commercial banks stayed clear of rural borrowers.
Direct and indirect agricultural loans were made available to farmers after the
country’s nationalization. People thought that they could not meet the credit demands
of farmers, farm workers and other people in vulnerable positions. Cooperative banks
have also failed badly to meet the needs of Indian ex-pats in terms of timely and
enough loans. To ll the functional and geographic deciencies in the rural credit
system, regional rural banks were founded. A Development Bank called NABARD
was established later to provide and regulate credit for the promotion of agriculture,
small-scale industries, cottage industries, handicrafts and other allied economic
activities in rural areas with the goal of ensuring the long-term prosperity of rural
areas, as well as for matters related or incidental to this purpose.
Objective
The purpose of this research is to examine the importance of rural infrastructure
development and the dierent initiatives undertaken by NABARD in this direction.
The following are the primary goals of this study:
1. To get an understanding of NABARD’s general policy and core activities.
2. To analyze NABARD’s developmental activities, including the establishment of
dierent funds and plans for rural development.
3. To determine the extent to which various types of rural infrastructure have
improved and developed.
Research methodology
This study’s primary objective is to get an understanding of the current state of
rural infrastructure development activities being undertaken by the National Bank
for Agriculture and Rural Development (NABARD). A descriptive and analytic
approach is used in this research, which is carried out with the assistance of secondary
data obtained from library books, journals, newspapers, magazines, government
publications, and websites.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
20
Prole of NABARD
The Government has recognized the critical role of institutional credit in reviving the
rural economy from its inception.In 1979, at the request of the Government of India, the
Reserve Bank of India (RBI) established a committee to Review the Arrangements for
Institutional Credit for Agriculture and Rural Development (CRAFICARD), chaired
by Shri B. Sivaraman, a former Planning Commission member.The Committee’s
1979 report underlined the need for a new organizational structure capable of giving
undivided attention, rm direction, and a laser-like concentration to rural development-
related credit concerns.It led in the establishment of NABARD (National Bank for
Agriculture and Rural Development) as a statutory entity under the National Bank
for Agriculture and Rural Development Act, 1981, in 1982.Before the foundation
of NABARD, the RBI was the top organization for providing loans to India’s rural
economy.As a consequence, NABARD was elevated to the status of the country’s
top development nance organization.
The NABARD’s involvement in agriculture and rural development is essentially
a continuation of the RBI’s participation in this sector.The operations of three RBI
institutions have been moved to NABARD: the Agricultural Credit Department
(ACD), the Rural Planning and Credit Cell (RPCC), and the Agricultural Renance
and Development Corporation (ARDC).NABARD’s Board of Directors and Advisory
Council are comprised of professionals from small-scale industry, as mandated by the
1981 Act. Additionally, banks that lend to micro, small, and decentralized enterprises
are eligible for nancial support from NABARD.
Objectives of NABARD
●To devote full and uninterrupted attention, as well as deliberate direction, to
integrated rural development.
●At the national level, it is intended to serve as a focal point for the whole rural
credit system.
●Providing extra nance to rural credit institutions is the third function of the
organization.
●To facilitate the provision of investment nance to small and medium-sized
enterprises, village and cottage industries, handicrafts and other rural crafts,
artisans, and farmers.
●To strengthen the credit distribution system via institution creation, credit
institution rehabilitation and bank employee training, among other methods of
doing so.
●In-order to support rural development, SLDBs, SCBs, RRBs, and commercial
banks are being oered renancing opportunities.
●To coordinate the activities of various organizations involved in rural
development work at the regional level, as well as to maintain close contact with
the Government of India, the Reserve Bank of India, state governments, and other
policy-making institutions at the national level.
●The NABARD’s role is to examine, monitor, and assess projects that are receiving
renancing.
ROLE AND IMPORTANCE OF NABARD
21
Functions of NABARD
The major functions of NABARD include promotion and development; renancing
and nancing; planning; monitoring and supervision.
Non-credit-related functions include:
●Contribute to the creation of policy by the Government of India, the Reserve
Bank of India, and state governments on issues relating to agricultural loans and
rural development.
●To boost the rural credit delivery system, cooperatives and Regional Rural Banks
(RRBs) are being helped to grow their institutions and build their capacities.
State Cooperative Banks and District Central Cooperative Banks (DCCBs) are
subject to statutory inspection, while State Cooperative Agriculture and Rural
Development Banks (SCARDBs) are subject to voluntary inspection, and their
o-site surveillance is mandated by the Federal Deposit Insurance Corporation.
●Convergence with government-sponsored programs in the elds of farm and
o-farm promotion and development, micronance, nancial inclusion, and
convergence with government-sponsored programs.
●Supporting the work of Regional Rural Banks and Cooperative Banks in the area
of nancial inclusion.
●The emphasis is on the development of livelihood possibilities and
micro-enterprises.
●Increasing the capacity of employees and board members of credit cooperatives
and employees of rural nancial institutions is a priority.
●Providing support for research and development, rural innovations, and other
initiatives
Credit-related functions include:
●Renance to Rural Financial Institutions for the purposes of investment credit
(long-term loan) and production and marketing credit (short-term loan) for farm
and o-farm businesses in rural regions
●Loans to state governments for the development of rural infrastructure and the
reinforcement of the cooperative credit framework are made available.
●Finance for warehousing infrastructure to State Governments, State and Central
Government-owned or -aided entities, co-operatives, cooperative federations,
farmers’ producer organizations, farmers’ collectives, Primary Agricultural
Credit Societies (PACS) / Cooperative Marketing Societies (CMS) or similar
institutions, corporates/ companies, individual entrepreneurs, and so on.
●Under the Umbrella Programfor Natural Resource Management (UPNRM),
direct lending to cooperatives and producers’ organizations, support to state-
owned institutions/corporations under the NABARD Infrastructure Development
Assistance, and direct lending to individuals, partnership rms, corporations,
NGOs, micronance institutions, farmers’ collectives, and other similar entities
are permitted.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
22
NABARD’S contribution to rural infrastructure development
NABARD has grown into a signicant participant in rural infrastructure nance
throughout time, utilizing dierent monies invested in it by the Government of
India (GOI). India’s rural infrastructure scene shifted irreversibly in FY1996 when a
smart policy masterstroke soaked up commercial banks’ PSL decit to establish the
Rural Infrastructure Development Fund (RIDF) for resurrecting stalled fund-starved
irrigation projects.
Founded in FY1996 with a capital of only Rs. 2, 000 crores for irrigation, ood
control, and watershed management projects, the RIDF was eventually expanded to
embrace 37 activities to address a range of rural infrastructure requirements; its path
has been distinguished by several signicant accomplishments.NABARD advocated
for a larger corpus for RIDF in FY2022, recognizing the critical need to build its
infrastructure at this point. The Government of India granted a corpus of Rs. 40, 000
crores for the XXVII RIDF Tranche (FY2022), a signicant increase above the Rs.
29, 763 crores given in FY2021.
Table No. 1: Sanctions and Disbursements under various
infrastructure funds of NABARD(Rs crore)
**Source: NABARD Annual Report 2020-2021
Notes: DIDF= Dairy Processing and Infrastructure Development Fund; FIDF=
Fisheries and Aquaculture Infrastructure Development Fund; FPF= Food Processing
Fund; LTIF= Long Term Irrigation Fund; MIF= Micro-Irrigation Fund; NIDA=
NABARD Infrastructure Development Assistance; PMAT-G= Pradhan Mantri
AwaasYojana- Gramin; RIDF= Rural Infrastructure Development Fund; RIPF=
Rural Infrastructure Promotion Fund; SBM-G= Swachh Bharat Mission- Gramin;
ROLE AND IMPORTANCE OF NABARD
23
WIF= Warehouse Infrastructure Fund; 45 percent of the incentives were allocated to
agriculture and allied projects, including irrigation, with irrigation being the single
most desired investment. At the same time, the social sector seemed to be a top priority
for state governments, as shown by a 58 percent share of the total number of projects
sanctioned for scal year 2021.
Figure No.1: Projects under Rural Infrastructure Development
Fund by Sector in FY2021
**Source: NABARD Annual Report 2020-2021
NABARD infrastructure development assistance (NIDA)
NABARD Infrastructure Development Assistance (NIDA) provides well-managed
public sector entities with exible long-term loans to nance rural infrastructure
projects, such as agriculture infrastructure, rural connectivity, renewable energy,
power transmission, drinking water and sanitation, and other social and commercial
infrastructure. NIDA’s nancial scope has been expanded by include public–private
partnership (PPP) and non-PPP initiatives (undertaken by registered organisations
such as corporations, cooperatives, and others).
By improving Agri-production and productivity, better connectivity, and
employment, as well as facilitating access to improved sanitation and a reliable supply
of water, NIDA has had a signicant socio-economic impact, with implications for
reducing child malnutrition and mortality, as well as improving female enrolment
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
24
in schools. The NIDA initiatives also help to meet the aims set out in Sustainable
Development Goal 6: Clean Water and Sanitation.
Figure No. 2: Sector Share in NIDA as on 31st March 2021
Source: NABARD Annual Report 2020-2021
Conclusion
From what we’ve seen, it’s clear that NABARD helps improve rural infrastructure.
Coordination between governments and institutions engaged in rural development is
seamless and result-oriented when it is facilitated by this organisation. Developing
ROLE AND IMPORTANCE OF NABARD
25
micro-infrastructure in rural regions has enormous potential, but there is currently no
framework in place to coordinate the development of infrastructure inside individual
villages. To take the lead in this approach, NABARD may draw on its expertise in
RIDF. Minor irrigation, drinking water supply, sanitation, agricultural and related
sector, warehousing and storage, rural connection, education, rural health, etc. are
some of the possible infrastructure in this section. With the right nancial instruments
and a well-designed delivery model, investments in this direction may be boosted via
a triangulation between the governments of dierent states, nancial institutions, and
private infrastructure companies.
Reference
1. C, PARAMASIVAN & Subbiah, Rajaram. (2015). An Overview of Micro
Insurance Industries in India.
2. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
3. Dr. Anoop Kumar Singh, D. V. (2015). Role of NABARD in Rural Infrastructure
Development. IJARIIE, 1(3), pp 442-447.
4. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
5. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
6. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and
its Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
7. S.Rajaram (2017) Empowering Indian Economy Through GST in India,
Economic Challenger., Issue 77., pp.46-50
8. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study On Satisfaction Of
Tourists Visiting Yercaud Of Salem District. Asia Pacic Journal of Research In
Business Management, 4(3), 1.
9. Subbiah, Rajaram. (2020). KAAV INTERNATIONAL JOURNAL OF
ECONOMICS, COMMERCE & BUSINESS MANAGEMENT.
10. Subbiah, Rajaram. (2020). MICRO INSURANCE -A CONCEPTUAL
ANALYSIS.
26
ROLE OF NABARD IN PROVIDING
FINANCE FOR AGRICULTURE AND
RURAL DEVELOPMENT IN INDIA
WITH SPECIAL REFERENCE TO TAMIL
NADU
A.CHITHAMBARAM
Assistant Professor
T. NIVETHA
Assistant Professor, School of Commerce
KPR college of Arts and Science and Research, Coimbatore
ABSTRACT
In respect of rural credit in recent years is the setting up of the National Bank for
Agricultural and Rural Development on 12th July 1982. From the very beginning,
the Reserve Bank of India (RBI) was extending the agricultural credit through state-
level cooperative banks and land development banks. NABARD is the capital of rural
credit management. It has to make sure that the adequate ow of credit for agricultural
operations and to maintain production of agriculture. NABARD is responsible to boost
the credit ow for long-term investment in the agricultural sector. The Agricultural
Renance Development Corporation (ARDC) was also set up by RBI in 1963 for
meeting the long-term credit requirement of rural areas. But after the formation of
NABARD, it took over all the agricultural credit functions of RBI and the renance
functions of ARDC after its merger with NABARD. It was authorized and received
shares that were contributed equally by the RBI and the government. It received a
share capital of 500 crores and paid-up capital of 100 crores. The Bank provides
short-term, medium-term, and long-term credit to state cooperative banks, RRBs, and
commercial banks for its investment in agricultural and other allied sectors.
Keywords: Agriculture, Banking, Rural Development, Investment, Renance, RBI,
Rural credit.
ROLE OF NABARD IN PROVIDING FINANCE FOR AGRICULTURE
27
Introduction
The national bank for Agriculture and rural development or NABARD provides
investment and production credit facilities for the development of rural areas, which
will help to enhance the rural development and rural prosperity. This bank is the center
or main nancing agency for the development projects and ensure the projects for
proper nancing and promotion of agricultural, Small scale industries, cottage village
industries and handcrafts to promoting integrated rural development and securing
prosperity. There mission is to promote sustainable and equitable and agricultural
development through participative nancial and non- nancial interventions,
innovations, technology and institutional development for securing prosperity. It
has to stay in touch with all major nancial intuitions including Indian Government,
Reserve Bank of India and state Government or any other intuitions that may be take
part in rural development activities.
Need for the study
The National Bank for Agriculture and Rural Development or NABARD provide
Investment credit facilities to create capital formation through asset creation. The main
motive is to encourages the technological up gradation to increase the production result
and enhanced productivity and incremental income to framers and entrepreneurs. The
NABARD Introduced Renance facilities to the farmers by disbursed amount of 1,
30, 964crore and 92, 786 corore for supporting ST and LT nancing banks during
the previous year 2020 -2021. It is planned to create income generating assets by
various sectors Agricultural and allied activities Artisans, Small scale industries, non-
farm sector ( Small and Micro Enterprises), handcrafts, handlooms, powerlooms,
ect. The responsibility of coordinating all the nancial activities in the rural areas
with nancial institutions involved in the development projects of NABARD. It
has to touch with major nancial institutions Indian Government, Reserve Bank of
India, State Governments and any other major institutions to support rural agriculture
development activities. NABARD also helps self-help groups or SHGs through its
SHG bank linkage programmes.
Objectives
●The promoting growth opportunities and making nancial Operations viable.
●To enhance productivity and generate income to farmers and entrepreneurs.
●To encourage the employment opportunities for farmers and Agric- Graduates.
Review of literature
National Bank Newsletter - November 1990: The Tamil Nadu state women’s
development corporation MahalirThittam Scheme for Financing informal groups of
women to avail credit undertaking income earning enterprises. The Scheme involved
a nancial pay out of Rs.17 crores and beneciary covered 50, 350 poor women from
selected three district of Tamil Nadu.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
28
National Bank Newsletter – July -1991: NABARD has determined to raise to
provide nance assistance to the State Co-operative Banks behalf of the Central
Co-operative Banks for Seasonal Agricultural operations(SAO).
National Bank Newsletter – April 2001: NABARD determined to enlarge nance
support to Banks for nancing two wheelers loans for formers, so that they can very
useful sell their product in nearest market areas.
Y.L Sapra 2002 – NABARD has sponsored Rs.150 crores to the Tamil Nadu
Government for development of Rural Infrastructure facilities in power, health,
education sectors and to expand rain water harvesting facilities in Tamil Nadu.
The Hindu reports that the NABARD sanctioned over 5500 Rural Infrastructure
development activities from Rural Infrastructure development Fund (RIDF) in India
for the last nine years.
The Hindu reports that the NABARD determined watershed project in Vellore,
Theni, Namakkal, Tharmapuri, Krishnakiri, Thiruvannamalai districts in Tamil Nadu.
Essential features of rural nance of agriculture
The rural nancial institutions oer demand – oriented various nancial services for
smallholder farmer and Entrepreneurs.
NABARD, which is responsible for the supervision, renancing and promotion
of rural nance all farmers are covered by the nancial loan system.
Under the rural nance system agricultural and allied actives are promoted.
In non farm sector the MSME both manufacturing and service, that creates
employment opportunities in rural areas.
It encourages technological up gradation resulting in increased production.
Classications of schemes
The Government of India encourages the farmers to spet into new projects in selected
areas. These schemes aims to enhancing the capital investment in various levels
of production and sustained income ow and develop the National income. The
NABARD has been proved channel partner of the government in some schemes the
various subsides are passed through the nancing Banks.
New Agricultural Marketing Infrastructure (AMI) sub scheme of ISAM. The
AMI is applicable for new credit linked projects, the term loans are sanctioned by
the eligible nancial institutions from 22.10.2018.
Agri clinics and Agri Business centres scheme in this the NABARD acting as
subsidy channelizing agency. The main moto is to support agricultural Development
and create gainful self- employment opportunities to unemployment agricultural
graduates. They provide advice to the farmers to increase productivity of crops and
animals and generates income of the farmers they give their support in the areas in soil
health, cropping practices and plant protection. Agri- Business centres are commercial
units of Agri- ventures introduced by trained agriculture professionals. They provide
advice and guidance for market linkages for income generation and entrepreneurship
development and this schemes covers full nancial support provision of loan and
credit- linked, back- end composite subsidy.
ROLE OF NABARD IN PROVIDING FINANCE FOR AGRICULTURE
29
National live stock Mission which commenced from 2014-2015 has the objective
of sustainable development of the livestock sector this helps in Entrepreneurship
Development and Employment Generation (EDEG) component National Livestock
Mission. They Channelizing agency are Poultry Venture Capital Fund (PVCF),
Integrated Development of Small Ruminants and Rabbit (IDSRR), Pig Development
(PD) and Eective Animal Waste Management.
Dairy Entrepreneurship Development Scheme for generating self- employment
opportunities in the diary sector covering activities such as enhancement of milk
production and setting up of modern dairyfarms for production of clean milk.
Capital Investment subsidy scheme for commercial production units for organic
biological inputs to encourages Organic farming in the country by available sources
of organic inputs such as Bio fertilizers, Bio pesticides as well as fruits and vegetables
market waste to generate income.
Period based classication of rural renance
Rural Finance may be classied in the following ways:
Short term loans
The crop loans are extended to farmers for development crop production by various
nancial institutions which support in ensuring food security in the country. The
repayment on demand or on the expiry of xed periods not exceeding 12 months, by
way of renance for production, marketing and procurement activities.
Medium term loans
Medium term renance to bamnks for providing adequate credit to farmers and rural
artisans for investment credit activites for giving a boost to private capital formation
in agricultural.
Long term loans
NABARDs long term renance provides credit to nancial institutions for farm and
non- farm activities with the tenor of 18 months more than 5 years. During the
post covid period NABARD introduced four special renance schemes of watershed
as well as wadi projects, water sanitation and hygiene (WASH) and Micro Food
Processing activities.
Conclusion
In the present study the up gradation of technologies and modernization of agricultural
and to improve its productivity. Finance play an important role in the rural development
of farmers by various nance schemes. The institutional renance to agriculture and
allied activities has been increased in India. By the various loans nance schemes the
framers step into new projectsand invest their amount in new technical machines to
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
30
increase the productivity. The nance amount is a new start up amount to buy the crops
to promote the growth rate of agricultural sector and helpful for new implementation
of various schemes. So the farmers are boosted by the nance facilities provide by
NABARD with the help of nancial institutions for the growth of agricultural sector.
References
1. C, PARAMASIVAN & Subbiah, Rajaram. (2015). INTERNATIONAL
JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH AN
OVERVIEW OF MICRO INSURANCE INDUSTRIES IN INDIA.
2. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
3. NABARD ‘s Watershed Projects for six more districts- The Hindu, Dated 2nd
Dec’2003.
4. NABARD Funds for Rural Development – The Hindu , Dated 13 Nov’2003.
5. NABARD Help for Rainwater Harvesting – The Hindu, Dated 21st march’
2002.
6. National Bank Newsletter – Vol.1-Nov-1990, No.four
7. National Bank Newsletter(2001) – April.Vol.12.No.1
8. Paramasivan, C., & Selladurai, M. (2017). Technopreneurship education: Teach
and train the youths. Asian Journal of Management, 8(4), 1173-1176.
9. Priyadharshini, J., & Muthusamy, S. (2016). Service quality and passengers
satisfaction of southern railways by ServQual model. International Journal of
Trend in Research and Development, 3(6).
10. S.Rajaram and J.Robert Edwin Chester (2020) Organisational Prole of
Women owned Micro Enterprises in Kaniyakumari District., Vol.40., Issue.18.
pp.2057-2059
11. Seasonal Agricultural Operations Policy for the year 1991-92 (1991) National
Bank Newsletter – July - Vol.2- No.four
12. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study On Satisfaction Of
Tourists Visiting Yercaud Of Salem District. Asia Pacic Journal of Research In
Business Management, 4(3), 1.
13. Subbiah, Rajaram & Professor, . (2020). ORGANISATIONAL PROFILE
OF WOMEN OWNED MICRO ENTERPRISES IN KANIYAKUMARI
DISTRICT. 10.13140/RG.2.2.28424.57608.
14. Subbiah, Rajaram. (2020). ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT.
2394-3114.
31
AGRICULTURE SECTOR ITS ROLE AND
IMPORTANCE IN INDIAN ECONOMY
Dr.Raya
Department of Economics
Novel Institute of Management, Pune
Introduction
India’s already large population is expected to become the world’s largest in the next
20 years, while its economy will soon overtake Japan’s to become the world’s third
largest. The resulting increase in the demand for food will need to be met through
higher agricultural productivity or by increasing food imports. This article discusses
some of the key areas of progress and challenges for India’s agricultural sector,
including: productivity, water management, government policies and programs, and
food distribution and storage.
Economic empowerment, as it relates to agriculture, refers to the ability to
improve one’s standard of living through the income generated from the sales
of agricultural produce. Economic Survey of India 2020-21 report stated that in
FY20, the total food grain production in the country was recorded at 296.65 million
tonnes—up by 11.44 million tonnes compared with 285.21 million tonnes in FY19.
... India is among the 15 leading exporters of agricultural products in the world.
The share of agriculture in gross domestic product (GDP) has reached almost 20
per cent for the rst time in the last 17 years, making it the sole bright spot in GDP
performance during 2020-21, according to the Economic Survey 2020-2021
Background
India has a particularly large agricultural sector. While the sector’s share of GDP
has halved in the past 30 years to around 15 per cent, it still employs around half of
India’s workforce and accounts for much of the volatility in Indian GDP. India has the
second largest area of arable land in the world and is a major producer of a number
of agricultural products Around the turn of the century, India overtook the United
States as the world’s largest producer of milk and is also a major producer of pulses,
such as chickpeas and lentils, which are major sources of protein in vegetarian diets.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
32
Role of agriculture in economic development
1. Stimulates industrial expansion: Expansion in the agriculture sector also led
to the expansion of the industrial sector. When agriculturalists have savings,
they can buy consumer goods, invest in industries too. This results in an indirect
expansion of the industrial sector.
2. Providing employment: When there is an increase in the agriculture sector,
its production, more employment opportunities will also be generated. Direct
employment in the crop raising, agriculture expansion also provides work in the
other sphere.
3. Resources for Capital Formation: This is all more important because with the
existing modern capitalist sector being small, there is little that can come from
this sector by way of surpluses or prots for investments. On the other hand,
agriculture, as is the case in India, is a big sized sector. It can contribute more
to the development of the industrial sector because the primary industries run
with the help of raw material which comes from agriculture. For example Sugar
Industry, Juice Factory, Cotton industry, etc
4. Supply of Foreign Exchange: Agriculture can contribute a great deal in earning
foreign currency through the export of agricultural products. The requirements
for the expansion of exports can be easily met by adding a crop or two within the
existing crop pattern and that too with perhaps no additional capital investments.
Further, since such exports have to cater to the existing and familiar international
market, no additional costs are involved to discover or nurture new markets.
5. The Shift of Manpower: Provides work to the majority of the workforce in the
country. In the least developed countries, the majority of the workforce work in
disguised unemployed agriculture labour. Agricultural progress allows manpower
to shift from the agricultural to the non-agricultural sector. In the initial stages,
it is more necessary to shift labour from the agricultural to the non-agricultural
sector from the point of view of economic growth as it relieves the burden of
surplus labour-power over the limited land. Consequently, the release of surplus
manpower from the agricultural sector is necessary to advance the agricultural
sector and to extend the non-agricultural sector.
6. Supply of Food and Raw Materials: Feeds the requirement of industrialization.
Agriculture plays a very role in development. Contributes in many consumer goods
like oil, clothing, etc. Further food grains are very important for underdeveloped
economies. In case of shortage of food, it helps a lot in developing countries
as the mass import is not possible and economically feasible for them. So,
agriculture should be given due importance so that this essential supply of food
and raw material can be maintained.
7. Helpful to Reduce Inequality: There is greater income inequality between the
world’s rural and urban areas in a country which is largely agricultural and
overpopulated. To reduce this income inequality, greater priority must be given
to agriculture. Agricultural growth will increase the income of the majority of the
rural population and hence the income inequality might be somewhat reduced.
AGRICULTURE SECTOR ITS ROLE AND IMPORTANCE IN INDIAN ECONOMY
33
8. Create Eective Demand: Agricultural sector growth will tend to increase
farmers’ purchasing power which will help the country’s non-agricultural sector
expand. It will provide a more productive market. It is well recognized that the
majority of people in underdeveloped countries rely on agriculture and it is they
who must be able to aord to consume the goods produced. It will, therefore, be
helpful in boosting non-agricultural sector production.
9. Source of Foreign Exchange for the Country: Majority of the world’s
developing countries are exporters of primary products. Such goods contribute
60 to 70 per cent of overall earnings from exports. Thus the ability to import
capital goods and industrial development machinery is crucially dependent on
the agricultural sector’s export earnings.
Place of agriculture in the Indian economy
1. The major source of livelihood: One of the major sources of livelihood is
agriculture. More than 70% of the rural Indian people depend on agricultural
activities in one sense or the other for their livelihood. The people depend on
agricultural activities in one sense or the other for their livelihood. The people
dependent on agriculture in the foreign countries which are developed nations
such as America, Japan, and Germany have less population dependent on
agriculture in comparison to India.
2. Increase in foreign trade: Agriculture in India plays an important role in the
enhancement of international trade. The commodities which are exported from
India are oil cakes, tea, vegetables, and fruits, coee, cotton, spices, tobacco,
sugar, owers vegetable oils and raw wool. Agriculture contributes a noticeable
part in Indian exports. With the invention of organic farming, exports have also
increased in the last few decades.
3. Creates employment opportunities: Indian agriculture gives employment and
work to a vast majority of the people to the rural crowd. In rural and backward
areas, almost 70% of the masses earn their livelihood from cultivation and
allied agro-industries. Agriculture is also helpful in increasing the employment
opportunities in the manner that it is helpful in industrial growth and expansion
which leads to an increase in employment.
4. More capital investment: In today’s world modern agricultural equipment is
used for cultivation, irrigation, land preparation, banding, harvesting, ploughs,
etc. which requires a huge amount of investment. Income leads to savings and
savings leads to investments. As we know that agriculture contributes almost
16% to the national income of the economy, there will be savings from the
agriculturalist and it will lead to capital formation.
Loopholes in carrying out agricultural activities
1. Poor inputs and techniques: The techniques and methods of cultivation have been
old and inecient. It results in a high cost of production and low productivity.
These methods have not undergone and changed for centuries. The investment
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
34
in agriculture in the form of manures and fertilizers, improved seeds, irrigation,
tools and implements and other types of assets has been miserably low.
2. Inadequate irrigation facilities: One of the main reasons for the weakness of
Indian agriculture has been the lack of irrigation facilities in the country. The
farmers have to depend upon rainfall and very few of them can avail the facilities
of irrigation systems. Sometimes drought and oods also spoil the whole
cultivation and crops.
3. Indebtedness of the farmers: There is an old saying that the farmers in India are
born in debt, live in debt and bequeath debt. The reasons for their indebtedness
are many such as hereditary debt, litigation, want of supplementary incomes and
wasteful social expenditure.
4. Low adoption of improved technology: The adoption of high yielding varieties
(HYV) is very rare in India. The important reasons for the slow growth of HYV
are the non-availability of suitable seeds, the predominance of traditional seeds,
short supply of recommended seeds and defective distribution system.
5. Absence of Innovation in Agriculture: Absence of alternative for escaping pre-
monsoon showers to avoid the problem of pre-harvest sprouting of crops in
ood periods is a major problem. There is a lack of improved crop management
practices for shifting cultivation. The facilities of storage, processing and
marketing are particularly decient for perishable commodities.
6. Rural transport and communication network: Most of the areas remain
inaccessible during rainy seasons for non-availability of all-weather roads.
Roads are found to be highly damaged and there are no proper transport facilities
to the access of the villagers.
Progress of Indian agriculture
1. Government Measures: Through the ve-year plans, the government of India
has played an active role in the development of agriculture. Proper objectives
have been laid down in the various plans. According to these objectives,
corresponding measures have been spelt out. All the activities are directed
towards the achievement of these objectives.
2. Expanding Government’s Role: From the rst ve-year plan, the government
realized that for the development of agriculture, the government has to play an
important role which would be a crucial one. Agriculture is the backbone of the
economy and the poor farmers cannot uplift themselves. That is why the measures
needed for the upliftment of agriculture could be taken by the government. In
recent years, the government’s actions have expanded to include programmes for
rural development and special area programmes.
3. Laudable objectives: The objectives of dierent plans are varied from time to
time. Somewhere the aim was to increase productivity and elsewhere to improve
the quality of food grains. Land reforms have been the other signicant objective.
Another important objective was to uplift the weaker sections of the society.
For example, the small and marginal farmers, landless agricultural labourers,
AGRICULTURE SECTOR ITS ROLE AND IMPORTANCE IN INDIAN ECONOMY
35
and many of those engaged in activities allied to agriculture such as animal
husbandry and sheries, etc.
4. Appropriate measures: In order to achieve these objectives many measures have
been taken by the government of India. For example, to increase the production
and productivity the supply of inputs, infrastructural facilities, an extension
of irrigation, modern laboratory-based seeds, include banking, marketing,
credit, transportation, communication, nance, education, and information
dissemination, etc.
5. Considerable resources: Large resources have been devoted to agricultural
development. These have been on the rise from plan to plan. The funding for the
development of agriculture has also been increased from time to time. For the
control of droughts and oods, many funds have been given by the government.
Special programmes for the benet of rural people have been introduced along
with industrial development.
Top 10 Agriculture States in India – Largest Crop Producers
The Top Agriculture States in India
Agriculture in India is the essence of livelihood for around 58% of the population.
Agriculture States in India growing with super quality food grains and other food
items. The Indian agriculture industry is increasing at a high pace and continuously
providing its contribution to world trade. India’s grocery and food market is the 6th
largest globally, with 70% of the sales.
With developing India, agriculture is evolving continuously at the same pace.
The pattern of production and consumption of food is changing. For some years, in
India, an increase in population, an increase in Income, rural/urban migration, and
extension in rural per capita productivity has been recorded. With the enhancement
of all these factors, demand for the food increased too.
India’s per capita GDP is supposed to rise by 320% in the coming 20 years.
With time changing, the trend is remolding too. Indians are now consuming high-
quality foods, and focus is switching from plant-based protein to animal-based
protein. All thanks to enhancing obtainable incomes and quickly increasing consumer
requirements. We are here with the top 10 Agriculture States in India.
1. West Bengal
West Bengal is the largest food grain producing state in India. It is known for its
rice production, followed by Andera Pradesh, Punjab, and Uttar Pradesh. With rice
production, it is famous for jute, sesamum, tobacco, and tea too. In West Bengal, rice’s
total production is 146.05 lakh tons on 2600 kilograms per hectare yield. It comes
under rice producing states in India. West Bengal is engaged in fruit production,
including Mango, Litchi, Pineapple, Guava, and Orange.
West Bengal is rich with food commodities, they produced almost all the items,
Cauliower, Tomato, Cucurbits, Cabbage, Okra, and Brinja. Rice, jute, and wheat
are the main crops grown in West Bengal. In West Bengal, some spices produced
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
36
Chilli, Ginger, Garlic, Coriander, and Turmeric. West Bengal comes under the top
most agriculture states in India.
2. Uttar Pradesh
Uttar Pradesh comes under the top farming state in India and the rank of Uttar Pradesh
counted under major state wise crop production in India, bajra, rice, sugarcane, food
grains, and many more. It comes under the top wheat producing states in India,
followed by Haryana, Punjab, and Madhya Pradesh. Uttar Pradesh has 22.5 million
tons of wheat, and the weather condition is appropriate for growing wheat. On 96
lakh hectares, land used to grow wheat in Uttar Pradesh.
Uttar Pradesh is the largest hub for the sugarcane, and sugarcane is the most
produced crop globally. Sugarcane grows under hot and humid climate conditions,
and Uttar Pradesh is best for that. It has 145.39 million tons of sugarcane and grows
on 2.17 million hectares in the state.
3. Gujarat
Gujarat is the fastest growing state in India. this state adopted a wise development
pattern. They invested in agriculture, energy, and industry, for that they achieved a
double digit growth. Gujarat’s weather climate is variable, producing crops there is
dicult. One strategy farmers can adopt there is to manipulate crop environments by
advanced management for high yield.
Gujarat produced cotton, groundnut, castor, bajra, tur, green gram, sesamum,
paddy, maize, and sugarcane. And Gujarat produced cotton in a large scale, followed
by Karnataka, Maharashtra, and Telangana. Here groundnut grew too.
4. Haryana
And the next farming state is Haryana. Haryana is one of the biggest contributors
to agriculture. About 70% of the locals engaged in agriculture. Haryana plays an
important role in the Green Revolution in India. With all these, Haryana has a massive
irrigation system.
Some top crops produced in Haryana are sugarcane, paddy, wheat, and sunower.
And in India, it is the 2nd largest producer of sunower. Haryana involved in livestock
farming too. There are 99.97 lakh livestock populations in India. India consumes
milk products on a daily basis. It is a necessary diet. This comes under one of the top
Agriculture States in India.
5. Madhya Pradesh
Madhya Pradesh is known for its pulses production, followed by Maharashtra,
Rajasthan, and Uttar Pradesh. It is popular for soybean and garlic production too.
Madhya Pradesh earned signicant fame in pulse farming. Wheat and maize are the
main sources of the earning of farmers in Madhya Pradesh. And other pulses are
urad, soybean, and tur.
AGRICULTURE SECTOR ITS ROLE AND IMPORTANCE IN INDIAN ECONOMY
37
Madhya Pradesh has the largest area, for that they have dierent climate and soil
conditions best for a wide range of agriculture products. The agriculture sector of
Madhya Pradesh is the backbone of the Indian economy. Madhya Pradesh Agriculture
sector produced 65% of the employment, and it is ¼ of the GSDP (Gross State
Domestic Product).
6. Assam
Assam is highly dependent on agriculture in India. In comparison with other states,
Assam comes under the least developed states. Assam’s almost economy is based
on agriculture, and 70% of the population is dependent on agriculture income for
livelihood. Tea consumed on a regular basis all over the world after water.
Assam is popular for its tea production. It is the largest producer of tea in India,
followed by Himachal Pradesh, West Bengal, and other North Indian states. The most
famous types of tea in India are Nilgiri tea, Darjeeling tea, Assam tea, and Kangra
tea. Assam grew 52% of the total tea production in India
7. Karnataka
In Karnataka, agriculture is the most important part of the overall economy. Most of
the population of the state is engaged in farming. The weather climate of Karnataka
greatly supports agriculture. Karnataka’s Kharif crops are rice, maize, moong dal,
red chili, sugarcane, groundnut, soybean, turmeric, and cotton. Karnataka’s rabi
crops are mustard, sesamum, barley, wheat, and peas. Karnataka comes under the
top Agriculture States in India.
8. Chhattisgarh
Chhattisgarh is popular for the Rice Bowl of Central India. Some of the crops that
are produced in Chhattisgarh are rice, millets, and maize. In Chhattisgarh, 77% of the
area is used for rice production. Chhattisgarh is totally dependent on the rain. Only
20% of the total region is under irrigation.
●Fruit Crops – Lime, Cashew-nut, Guava, Cheku, Mango and etc.
●Vegetables Crops – Cucurbits, Cabbage, Beans, Cauliower etc.
●Spices – Ginger, Turmeric, Methi, Coriander, Chili, Garlic etc.
●Flowers – Marry-gold, Gladiolus, Gaillardia, Gladiolus etc.
●Medicinal Plants – Jamarosa, E.citridora, Pamarosa, Lemongrass etc.
Some Government Schemes for Farmers in India
Farmers called in India “Annadata”. The Government of India continuously supports
farmers, and they initiated many programs and schemes for them. Indian government
always works to boost the agriculture sector. We are showing a list of some government
schemes for farmers.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
38
1. E-NAM
2. PradhanMantriKrishiSinchaiYojana (PMKSY)
3. ParamparagatKrishiVikasYojana (PKVY)
4. PradhanMantriFasalBimaYojana (PMFBY)
5. GraminBhandaranYojna
6. Livestock insurance Scheme
7. The scheme on Fisheries Training and Extension
8. Micro Irrigation Fund (MIF)
9. National Scheme on Welfare of Fishermen
●India is the second agricultural production country in the world.
●And India is on the eight ranks of the world’s export.
●India is the largest milk producer country and 2nd largest in fruit production.
●Small and marginal farmers of India engaged in horticulture and livestock.
Conclusion
Agriculture is the Indian economy’s most important sector. India’s farm sector is
the largest industry. Approximately 70 per cent of people in India are either farmers
as a vocation or as workers. The share of GDP is just 18 per cent. But it provides
employment for around 50 per cent of the workforce in the country. It provides food
in India for about 135 crore people. India has become the world’s largest producer
of pulses, rice, wheat spices, etc. Approximately 12 per cent of export earnings
come from the agricultural sector. The Indian trade surplus of 14.6 billion dollars
from agriculture generated in 2018. These stats show how big and important part
of the country’s functioning is the agriculture sector. With constant changes and
developments happening, policies being introduced, it is only going to go upwards
from here and will always remain as an important factor in the economic development
of the nation. India’s agricultural sector is still very important to the Indian economy,
although its share of the economy has decreased over the past 50 years. India has
made signicant advances in agricultural production in recent decades, including the
introduction of high-yield seed varieties, increased use of fertilisers and improved
water management systems
References
1. NSSO (National Sample Survey Organisation) (2006), ‘Livestock Ownership
Across Operational Land Holding Classes in India, 2002–03’, NSS Report No
493.
2. World Bank (2004), ‘India: Re-energizing the Agricultural Sector to Sustain
Growth and Reduce Poverty’, Report No 27889-IN.
3. Subbiah, Rajaram. (2017). EMPOWERING INDIAN ECONOMY THROUGH
GST IN INDIA.
4. C, PARAMASIVAN & Subbiah, Rajaram. (2016). MICRO INSURANCE -A
CONCEPTUAL ANALYSIS.
AGRICULTURE SECTOR ITS ROLE AND IMPORTANCE IN INDIAN ECONOMY
39
5. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and its
Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
6. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
40
ROLE OF NABARD IN RURAL
DEVELOPMENT IN INDIA
C. NIRMALA RANI
Ph.D Research Scholar, Department of Commerce
St.Joseph’s College of Arts and Science, Cuddalore
ABSTRACT
“Growth with Social Justice” has been the basic objective of the Development
Planning in India since independence. Since the beginning of planned development,
the Government through Five Years Plans made signicant strides in developing rural
India.The National Bank for Agriculture and Rural Development (NABARD) was
setup in July 1982. It became the apex institution to play a pivotal role in the sphere
of policy planning and providing renance facilities to rural nancial institutions
and for augmenting their resource base. The paper analyses the role and function
of NABARD in rural development. Purpose wise disbursement of funds under
Investment Credit and RIDF during the year 2007-08 is also analyzed. It also throws
a light on NABARD’s past and present performance and its major achievements for
the year 2007-08.
Introduction
The National Bank for Agriculture and Rural Development (NABARD) was set up
in July, 1982 following after the recommendations of the “Committee to Review
Arrangements for Institutional Credit for Agriculture and Rural Development”. All
major issues related to rural credit until then dealt with by the RBI and the Agricultural
Renance and Development Corporation moved under the control of NABARD.
NABARD thus emerged as the apex institution to play a pivotal role in the sphere
of policy planning and providing renance facilities to rural nancial institutions.
NABARD has also been playing a catalytic role in micro-credit through the channel
of Self-Help Groups (SHGs).
Functions of NABARD
NABARD was set up essentially as a development bank for promoting agriculture and
rural development. Its main function is to provide renance for rural credit disbursed
ROLE OF NABARD IN RURAL DEVELOPMENT IN INDIA
41
by the State Ci-operative Banks, the Regional Rural Banks and other nancial
institutions as may be approved by the RBI.
Important Functions
●Providing nance and also renance for production and marketing in the rural
areas.
●Coordinating and advising the operations of institutions engaged in rural credit.
●Promoting research in agriculture and rural development.
Miscellaneous Functions
●Conduct inspections of the RRBs and the co-operative societies, without any
prejudice to the authority of the RBI.
●All the applications for opening a branch by RRBs or co-operative societies
should be forwarded to the RBI through the NABARD.
●Copies of all returns submitted by the RRBs and co-operative societies to the
RBIN should also be furnished to the NABARD.
●NABARD is also empowered to obtain any information or statement from the
RRBs and the co-operative societies.
●NABARD should undertake research and training programs. These comprehensive
training programs should be targeted towards NABARD’s own sta and the
sta of SCBs and RRBs as well. The R&D department of NABARD should
take the lead in promoting research concerning problems associated with India’s
agriculture and rural development and also other allied aspects. For this purpose
the NABARD has been authorized to maintain and R&D fund out of prots
earned by it every year.
●NABARD is responsible for coordinating with the Government of India, the
Planning Commission, is also responsible for ensuring the implementation of
various policies and programs meant for providing nance to the rural industries.
NABARD’sPast Performance (Prior to 2005)
●During 1983-84 NABARD mobilized net resources amounting to Rs. 774 crores,
which however fell to Rs. 541 crores during the year 1984-85. During this year
NABARD sanctioned Rs. 1233 crores to SCBs for nancial seasonal agricultural
operations. It also provided medium-term ands long term credit facilities for the
benet of the agricultural sector. During 1984-85 its total outstanding amounted
to Rs. 1018 crores and limits sanctioned amounted to Rs. 1688 crores.
●NABARD also assisted the development and promotion of agricultural
investments in the less developed and /or underbanked states. For this purpose
during the year 1984-85, it disbursed Rs. 455 crores.
●For the year 1986-87 NABARD could mobilize Rs. 887 crores towards its
aggregate net resources for providing rural credit.
●During 1986-87, NABARD completed the inspection of 178 CCBs, 86 RRBs, 7
SLOBs and 30 other institutions. It also approved and assited during the year, 5
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
42
research proposals, 17 seminars and several conferences from its R&D fund, and
incurred anf expenditure of Rs. 3.41 laks on this account.
●During the year 1987, NABARD also introduced a 10 point action programme
for rehabilitation of weak primary land development banks and branches of state
land developing banks. The action program was with regard to : (i) Investigation
of overdues; (ii) strengthening of organization and management; (iii) review of
loan policies and procedures; and (iv) strengthening of the resources of the LOBs.
●For the year 1989-90, the short term credit limits sanctioned by NABARD for
nancing seasonal agricultural operations aggregated to Rs. 2807 crores. During
this period NABARD provided renance assistance to the tune of Rs. 549 crores.
●During 1995-96, the total amount of renance disbursements by NABARD
increased by less than 2% to Rs. 3064 crore from that of the previous year. During
this period a Rural Infrastructural Development Fund (RIDF) was created within
NABARD for facilitating rural infrastructure projects.
●During 1996-97 NABARD’s resources increased to Rs. 2963 crores against Rs.
1617 crore in the previous year.
NABARD Current Performance (After 2005)
NABARD saw its renance to commercial banks increase by over 50% year on year,
for the scal ended March 31, 2006. For 2005-06, the renance was Rs. 4028 crore
against Rs. 2569 crors in 2004-05. As on February 2006, commercial banks, regional
banks and co-operatives disbursed an aggregate of Rs. 1, 46, 668 crores by way of
farm credit. This is against Rs. 1, 25, 000 crore in 2004.05.
Purpose wise Disbursements under investment Credit During 2007-08
Sector/Purpose/Activity Amount (Rs. In Lakh) % to Total Disb.
Agriculture
Minor Irrigation 40368 4. 46%
Land Development 46214 5. 11%
Farm Mechanisation 174765 19. 32%
Plantation & Horticulture 34182 3. 78%
SGSY Farm Sector 13242 1. 46%
SC/ST-AP-Farm Sector 1648 0. 18%
Other Agriculture 45717 5. 05%
Total 356136 39. 37%
Allied to Agriculture
Fisheries 2545 0. 28%
Dairy Development 60587 6. 70%
Poultry 21629 2. 39%
ROLE OF NABARD IN RURAL DEVELOPMENT IN INDIA
43
Storage/Market Yard 13628 1. 51%
Wasteland Development 639 0. 07%
Wasteland Development 639 0. 07%
Total 99667 11. 02%
NFS
SGSY Non Farm Sector 12616 1. 39%
SC/ST-AP-Non Farm Sector 404 0. 04%
Non Farm Sector 274795 30. 38%
Total 287815 31. 82%
Others
Non conventional energy 98 0. 01%
Self Help Group 161550 17. 86%
Total 161648 17. 87%
Total Disbursement 904627 100. 00%
The purpose wise disbursement for the year 2007-08 shows that total of Rs. 9,
04, 627 was disbursed for various purposes like agriculture and allied activities, non
farm sector etc, and maximum 32% is allotted to agriculture sector.
Purpose wise Disbursements under RIDF during 2007-08
Purpose Amount (Rs. In Lakh) % Share
Irrigation 286955 35. 71%
Rural Roads 257338 32. 03%
Drinking Water Supply 64688 8. 05%
Bridges 58159 7. 24%
Primary/Secondary School 49227 6. 13%
Power Sector 19294 2. 40%
Watershed Development 17980 2. 24%
Flood Protection 13225 1. 65%
Soil Conservation 8827 1. 10%
Forest Management 8030 1. 00%
Drainage Improvements 5931 0. 74%
Storage/ Market Yard 3467 0. 43%
Others 10371 1. 29%
Total Disbursement 803492 100. 00%
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
44
The data shows that under Rural Infrastructural Development Fund (RIDF)
maximum disbursement is provided to irrigation i.e. 35.71%, 32.03 % to Riral roads
and rest approximate 32% to all the other activities like drinking water, drainage
improvements etc.
Rural Non-Farm Sector
●Assistance out of Rural Innovation Fund –Total sanctions Rs. 26.14 crore &
Disbursements –Rs. 21.69 crore Rural.
●Entrepreneurship Dev. Program – No. of progs-787 Sanctions – Rs. 5.03 crore
Releases- Rs. 2.66 crore.
●Skill Development Programs & TPCs- No. progs -685; Sanctions –Rs. 2.69 crore;
Releases – Rs. 1.96 crore.
●Innovative Projects – No. of projects -29; sanctions – Rs. 7.78 crore ; Releases
–Rs. 2.56 crore
●Capacity Building of Partner Agencies-No. of Progs-13; Sanctions –Rs. 1.30
crore; Releases –Rs. 1.35 crore.
●Women development Programs – No. of progs-169; Sanctions – Rs. 1.45 crore ;
Releases – Rs. 0.31 crore.
●Marketing & Technology support –No. of progs -349 ; Sanctions – Rs. 1.97 crore;
Releses – Rs. 1.40 crore.
Promotion of Farmer’s Clubs
●Launching of 5277 new clubs (cumulative 28226 clubs)
●Financial support –New & existing clubs-5386; Sanctions – Rs. 3.14 crore;
Relesase- Rs. 3.39 crore (out of RIF)
●Future support to be provided from Farmers Technology Transfer Fund set up in
NABARD with corpus of Rs. 25 crore.
Micro-Finance and SHG Bank –Linkage Programme
●SHGs provided with bank loan-New groups -3.03 Lakh, Repeat groups -1.61 lakh
●Amount of Bank Loan disbursed –New groups –Rs. 1550 crore, Repeat groups
–Rs. 1608 crore
●Grant assistance to SHPIs for promotion & linkage of SHGs –Amount sanctioned
Rs. 13.70 crore & released Rs. 25.41 crore.
●Grant released for other promotional activities for awareness building, training
programs & exposure visits – Rs. 13.32 crore.
●Capital and equity support out of MFDEF –Rs. 9.25 crore sanctioned to 11
agencies.
ROLE OF NABARD IN RURAL DEVELOPMENT IN INDIA
45
Disbursements under WDF
●Grant released under PM’s Relief Package to distressed districts-Karnataka –Rs.
4 crore, Kerla- Rs. 0.23 crore, Maharashtra- Rs. 9.7 crores & Andhra Pradesh
–Rs. 10.75 crore.
●Financial assistance released in non-distressed districts –Grant of Rs. 7.51 crore
covering 128 projects in 13 States &
●Loan of Rs. 3.80 crore covering 100 projects in 2 States.
Tribal Development Fund – Amount of grant released –Rs. 15.52 crore covering
47 projects in 17 States.
Conclusion
As we analyse the data is shows that NABARD is working for the 360 degree
development of rural India. Every year the nancial assistance received by NABARD
and the disbursement made out of it are increasing. The balance sheet size also
increased from Rs. 81220 crore to Rs. 98706 crore & prot after tax assistance and
proved to be an institution where “Growth with Social Justice” exists.
References
1. C, PARAMASIVAN & Subbiah, Rajaram. (2015). JEEVAN MADHUR
MICRO INSURANCE IN SOUTH ZONE- A BIRDS EYE VIEW STUDY.
SELP Journal of Social Science. VI. 10-15.
2. C, PARAMASIVAN & Subbiah, Rajaram. (2016). MICRO INSURANCE -A
CONCEPTUAL ANALYSIS.
3. C, PARAMASIVAN & Subbiah, Rajaram. (2016). MICRO INSURANCE
PORTFOLIO OF PUBLIC AND PRIVATE SECTOR INSURANCE
COMPANIES. 72-77.
4. Eswaran, R., & Prema, M. G. (2019). Role Of NABARD In Agriculture And
Rural Development. Think India Journal, 22(14), 2434-2444.
5. Galistcheva, N. V. (2020). The Role of Small-Scale Industries in Achieving
the Sustainable Development: the Experience of India. MGIMO Review of
International Relations, 13(3), 151-169.
6. M, Selladurai, Empowering Transgenders Community through Education
(February 6, 2017). Available at SSRN: https://ssrn.com/abstract=3067545
7. Paramasivan, C., & Selladurai, M. (2017). Technopreneurship education: Teach
and train the youths. Asian Journal of Management, 8(4), 1173-1176.
8. Premadas, J. (2020). Negative Impact of COVID-19 in the Life of Wood
Charcoal Entrepreneurs.
9. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and
its Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
10. S.Rajaram and J.Robert Edwin Chester (2020) Organisational Prole of
Women owned Micro Enterprises in Kaniyakumari District., Vol.40., Issue.18.
pp.2057-2059
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
46
11. Saini, P., & Sindhu, J. (2014). Role of commercial bank in the economic
development of India. International Journal of Engineering and Management
Research (IJEMR), 4(1), 27-31.
12. Selladurai, M. Evaluating the Development of Technopreneurs in Tiruchirappalli
district.
13. Shah, B., & Soni, R. (2022). A Study on Role of NABARD and Financial
Initiatives taken in Promoting Rural Finance in India. Journal of Positive School
Psychology, 6(2), 4542-4550.
14. Subbiah, Rajaram. (2020). PROFILE OF MICRO INSURANCE PRODUCTS
- INDIVIDUAL V/S GROUP CATEGORIES.
47
IMPACT OF INTEGRATED
WATERSHED DEVELOPMENT
PROGRAMME A CASE OF TAMIL
NADU
Dr.S.KUMARAN
Professor, Alliance school of Business,
Alliance University, Bangalore
Dr.B.LATHA LAVANYA
Associate Professor, MEASI
Institute of Management, Chennai
ABSTRACT
Watershed is the area in the land surface, which contributes rainfall run-o to single
outlet. It is an independent drainage basin, and each watershed are separated from
other by a natural boundary called as ridge line. The watershed is classied based on
the size shape, drainage, and land use pattern. If the watershed area has more than
50000 hectares, it is called as Macro watershed and if it is between 10000 and 50000
hectares, it is termed as Sub-watershed. The land area is between 1000 and 10000
hectares, it is termed as Milli-watershed and the land holding is from 100 to 1000
hectare, it is called as Micro watershed and land has one to 100 hectares, it is called
as Mini watershed.
Introduction
Watershed management is the process of managing the elements of watershed like soil,
water, and vegetation for the benet of famers to improve the agricultural production
as well as society at large. The main objectives of the watershed management are to
prevent soil erosion, to recharge the ground water level, to minimise the exploitation
of natural resources, to preserve the wildlife and to control the pollution. The main
components of watershed are soil and water conservation, water harvesting and
water management and alternate land use system. This paper aims to nd out the
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
48
Integrated watershed development programme and its importance, major issues in
watershed management programme, steps in watershed management programme, the
objectives of watershed development and the case analysis of watershed management
programme in the state of Tamil Nadu.
Integrated Watershed Development Programme initiated and implemented by
the department of land resources, under the Ministry of Rural Development in the year
2009. The main objective of the programme is to cover 55 million hectares of rainfed
land by 2027. It foresees restoring the ecological balance by controlling, conserving,
and developing degraded natural resources such as water, soil, and vegetation. This
programme is being implemented in all states of the country and expenditure is shared
by central and state in the ratio of 90:10. The expected outcome of this programme are
prevention of soil erosion, rainwater harvesting and recharging of the ground water
and regeneration of natural vegetation. This enables multi-cropping and introduction
of diverse agro-based activities, which help to provide sustainable livelihoods to the
people residing in the watershed area. In 2015, the Integrated Watershed Management
programme along with On Farm Water Management scheme, accelerated the irrigation
projects. Through watershed development programme, water conservation measures
taken to enable the rural population to access safe drinking water, irrigation, sheries,
and aorestation. The project is being executed by local panchayats with people’s
participation. The state of Rajasthan has given importance for water conservation
by constructing water harvesting structures like farm ponds, percolation ponds,
check dams through people’s participation. The Tamil Nadu government also made
compulsory in constructing water harvesting structure in all house’s compulsory
and no new building is approved without construction of water harvesting structure
within the plot.
Importance of Watershed Management Programme
●Watershed management controls pollution water and other natural resources
within watershed.
●A proper planned watershed will reduce the adverse impacts such as ood, soil
erosion and ecologically hazardous activities.
●It enhances cooperation among the beneciaries of the watershed, which is
essential for the successful management of water and land resources.
●By the successful implementation of watershed programme, an economic growth
can be distributed fairly across the society and creating good opportunities for
everyone living within the watershed. So, it is a key for sustainable and inclusive
growth. For example, in the rainfed areas, the agricultural productivity would
be doubled, and rural people have access to increased water availability and
diversifying the cropping and farming system resulting in diversied sources of
income.
IMPACT OF INTEGRATED WATERSHED DEVELOPMENT PROGRAMME
49
Major Issues in Watershed Management Programmes
●Poor project design, outdated approaches, inadequate nancial resources, lack of
cooperation between upland and low land farmers leads to under achievement of
watershed management programme.
●The lack of national policies, strategies and action plans are main constraints in
implementing sustainable watershed management programme.
●Lack of cooperation among dierent committees in the watershed and self-help
groups within watershed are not include in the programme.
●Non inclusive of reserve forest lands into the watershed programmes and creation
of entitlements over the forest produce is not a part of watershed development
programme.
●Absence of agreement between forest department and rural development
department is critical bottle neck for the programme.
The above issues can be solved by building local partnership among local
people and creating awareness about the positive impact of watershed development
programme and encouraging the members to involve in decision making process,
protection and restoration eorts. By involving local community to reduce conicts
and increases commitment to the actions necessary to meet environmental goals.
The actions in the watershed should be prioritised and determine the opportunities
to reduce pollution. The community education about watershed development project
will enhance the success of the watershed. Eective implementation and regular
follow-up in the watershed development activities results in social and economic
growth within watershed area.
Water Resource Development Plan
It plays an important role in sustainable development watershed which possible only
through the implementation of various water harvesting technique. The plan includes
sub-surface water storage, soil moisture conservation and ground water recharge.
The various measures under soil conservation and water harvesting is vegetative
barriers, building contour bunds along contours to prevent soil erosion, Ridges and
furrows cultivation across the slope, adopting micro irrigation technique to reduce
the water consumption by the dierent crops and planting horticultural crops along
the contour bunds.
Steps in Watershed Development Programme
The problem pertain to soil. Land, water, and vegetation can be solved practically by
implementing the four phases i.e.. Recognition phase, Restoration phase, Protection
phase and Improvement phase. The recognition phase involves recognition of problem,
analysis of the causes of the problem and its eect and development of alternative
solutions to the problem. The restoration phase includes problem identication and
selection of best solution and application of solution to solve the problem. The general
health of the watershed will be taken care-o during the protection phase and in the
improvement phase overall development of the watershed will be taken cautiously.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
50
Attention is given to agricultural production, forest management, forage production
and pasture management and socio-economic growth of watershed management.
The watershed management programmes are started in under the following
activities. The Drought Prone Area programme was started during 1970-71 and its
main objectives includes restoration of ecological balance and optimum utilization
of land, water. Farm animals and human resources to lessen the impact of drought.
Desert Development programme is initiated in the year 1997 and its main objective
is to mitigate the eective of drought in desert regions. Then National Watershed
Development Programme for Rainfed Agriculture was implemented in 1986. The
main objectives are to conserve and utilize rainwater both arable and non-arable
lands on watershed basis and to increase the productivity of agricultural crops, fuel,
fodder, and fruit crops the alternative land use system. Control of shifting cultivation
initiated in the year 1986 to restore the ecological balance in hilly areas. The world
bank assisted Integrated Watershed Development project was implemented during
1990, to arrest the problem of environmental degradation and promote sustainable
agriculture production through the ecient adoption of soil and water conservation
methods.
The aim of Watershed Management practices is to enhance penetration and water
holding capacity and to avoid soil erosion. There are two methods to accomplish
watershed management are vegetative method and engineering method. The
vegetative or agronomical measures consists of strip cropping, pasture cropping,
grass land farming and woodlands. The engineering or structural measures includes
contour bunding, terracing, construction of earthen embankments, construction of
check dams, construction of farm ponds, construction of diversion, gulley controlling
structure, rock dam, establishment of permanent and grass vegetation and providing
vegetative and stone barriers.
Watershed Management Objectives
The formulation of the objectives depends upon the problems associated with the
watershed. It may be massive soil erosion problem, land reclamation, excess water
ow, water logging or drainage in watershed, a severe drought, shortage of water
etc. Overall, the watershed management objective is to improve the crop production,
ground water storage and to improve the standard of living people of watershed by
increasing their earning level, either by creating employment opportunity, developing
marketing facility, and creating other facilities like electricity, drinking water,
irrigation water.
However, depending upon the conditions of the watershed, the following are
important objectives of the watershed management
●To recognize the watershed as a unit for land use for crop production.
●To control rainfall runo and land degradation through soil and water conservation
activities.
●To control the ood by constructing reservoirs at proper location.
●To supply water to meet out the domestic, agricultural, and industrial needs.
●To lessen the organic, inorganic and soil pollution.
IMPACT OF INTEGRATED WATERSHED DEVELOPMENT PROGRAMME
51
●To improve the agricultural and allied production by ecient use of natural
resources.
●To manage and utilize the runo water for benecial purposes.
●To conserve and improve the land for more ecient and sustained crop production.
●To safeguard and improve the water resources commencing from the watershed.
●To check the soil erosion and reduce the eect of sediment yield in the watershed.
●To rehabilitate the deteriorating lands.
●To moderate the ood peaks all down-stream areas.
●To enhance inltration of rainwater.
●To enhance ground water recharge, wherever applicable.
●To improve and increase the production of timbers, fodder, and wildlife
conservation resources.
Watershed Management programme Implemented in Tamil
Nadu:
The watershed development programme was implemented throughout India by the
Ministry of Agriculture and respective state governments. In Tamil Nadu various
watershed developmental activities were implemented. To nd out the usefulness
of the programme, a questionnaire has been designed and responses were got from
farmers and other beneciaries of the dierent watershed located Tamil Nadu. The
responses were collected and analysed as follows:
Entry point activities:
Before implementing the programme, the activities like bore well, thrashing oor,
retaining wall in the water bodies, culvert and bathing steps in the village water
pond were implemented for the benet of the villagers as well as to moving close to
the farmers for better implementation of the programme. Among the dierent entry
activities, the bathing steps constructed in the village ponds scores highest points
and stood rst rank followed by borewell with mini power pump, thrashing oor,
retaining wall and culvert.
Impact of Watershed Programme
The main objective of watershed development programme is to conserve the soil
and water and make it use for the development vegetation for the benet of animals
and human beings living within it. By implementing the soil and water conservation
measures, the farm activities within the watershed should get improved. The impact
of watershed programme can be observed through the improvement in ground water
level, improvement in crop production, employment opportunities for landless
labourers, increase in green cover area, increase in livestock population, usage of
farm implements and equipment, improvement in irrigation methos, self help group
management and economic empowerment. Among the dierent indicators for impact
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
52
of watershed crop production, improvement in green cover and livestock population
scored good points.
Findings
●Integrated watershed management programme implemented by Ministry of rural
development in the year 2009 and aims to cover more than 55 million hectares of
rainfed land by 2027.
●In 2015, under the watershed development programme, safe drinking water for
rural population, irrigation projects and aorestation programmes were included.
●Tamil Nadu government made law that every new house should have a water
harvesting structure.
●The main signicance of watershed programme to control soil erosion, water
conservation and improve the agricultural productivity.
●Major issues in the watershed programme are lack of national policies, strategies
and action plans to implement watershed.
●The entry point activities like borewell with mini power pump, bathing steps in
ponds, retaining wall in erosion aected area, threshing oor for post-harvest
agricultural operations and constructions of culvert are welcomed by the members
of the watershed.
●Engineering measures and structural activities like construction of farm pond,
check dams, percolation ponds, deepening of canals and compartmental bunding
are found useful by the farmers.
●Among the dierent farm production system, Agro forestry was rated high
followed by horticulture development, fodder development, lives stock
development and distribution of agricultural equipment and implement.
●Under the capacity building, training programmes were organised farmers for
managing he watershed, exposure visits to another successful watershed and eld
demonstration on farm management were organised.
●Soil and water conservation practices are implemented through agronomical
measures were taken in watershed area through grass land farming, strip cropping,
pasture cropping and wood lands.
●Agri based farm activities like dairying, poultry, sheep and goat farming and
marketing of vegetables helped to increase the income of the beneciaries.
●Overall, the impact of watershed development programme was observed through
increase in ground water, employment opportunities, modernization of tank
irrigation, increase in crop production, livestock production and green cover in
watershed area.
●Infrastructure facilities like Grain storage structures, transportation facilities,
drinking water supply and agricultural activities were implemented successfully.
Suggestions
●In the watershed area the committee should often meet and discuss the issues
related watershed management. The de-siltation of irrigation tank, check dams
IMPACT OF INTEGRATED WATERSHED DEVELOPMENT PROGRAMME
53
and village ponds must be done in each year and the silt can be put int the
agriculture eld.
●The water harvesting structures should be inspected after rainy season and if any
damages are observed, it must repair immediately.
●The farmers should maintain the contour bund as well as compartment bund in
their respective eld.
●The farmers who benetted by irrigation tank must form an association and share
the irrigation water accordingly. The tail end small farmers also should get their
equity of irrigation water.
●The water committee build good rapport with government departments like
agricultural engineering, agriculture, horticulture, forestry, and public works and
utilize their services for crop production and infrastructure management inside
the watershed.
●It is observed that the price of the agricultural produce is less immediately after
the harvest. By having storage godowns in the watershed area and sell it after
three to six months period of harvest, the farmers can get good price for their
produce.
●The farmers can sell their produce through online and big market in the nearest
town.
●Training can be organised t the farmers on new technological advancement in
agricultural production.
Conclusion
The watershed management is a good approach for agricultural resource management
as well as agricultural production. The central and state government has implemented
several watershed development projects and found the usefulness of the project. The
watershed development projects helped the farmers and landless labourers empower
socially as well as economically. The case study on watersheds in Tamil Nadu
indicates that the soil and water has been conserved and there is a positive impact
agricultural farming. Based on the ndings of the study few recommendations are
provided for the better development of the beneciaries in the watershed.
References
1. Ajay Bhan Singh. Impact of Technological interventions in the Tribal villages
o Gujrat.
2. Chitkara, B., & Mahmood, S. M. J. (2019, November). Importance of web
analytics for the success of a startup business. In International Conference on
Recent Developments in Science, Engineering and Technology (pp. 366-380).
Springer, Singapore.
3. Dhruvanarayana, Ram Babu, Estimation of soil erosion in India. J. Irrig Drain
Engg
4. Insurance, M. (2016). Paramasivan C and Rajaram S.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
54
5. Kannan K., (2009), Impact evaluation of micro level water resources
development and improved agricultural practices, Indian Journal for Soil
Conservation.
6. Mutôa, R. F. A. (2018). Avaliação da satisfação dos turistasnacidade de
Inhambane.
7. National Commission on Agriculture, Ministry of Agriculture and Irrigation,
Government of India, New Delhi (1976)
8. Om Prakash and Singh H P., (2011), Impact of watershed development
programme on biophysical and economic factors in India. Journal of Soil and
Water Conservation in India.
9. Pilelienė, L., &Grigaliūnaitė, V. (2016). The index of tourist satisfaction with
Lithuania. European journal of tourism, hospitality and recreation, 7, 30-39.
10. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and
its Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
11. R.R. Agarwal, J.S.P. Yadav, R.N. Gupta, Saline and alkali soils of India, ICAR,
New Delhi (1976)
12. Rani, S. J. Emerging Trends in Startup Ventures. Contemporary Social Sciences,
25.
13. Reddy Y V R and Sastry G., (2010), Watershed Programmes in India, Scientic
Publishers, New Delhi.
14. Selladurai, M. (2020). Evolution of Technopreneurial Entrepreneurs in the
COVID-19 Pandemic Situation.
15. Singh RP, Ratan & Niva Bara. Eectiveness of training programme on
participatory watershed management.
16. Suhas and Wani, 2008, New Paradigm in Watershed Management (2008), pp.
163-178
17. The guidelines for watershed development projects in 1995 watershed
development in India An approach evolving through experience world Bank,
2014
18. Tideman E M., ( 2010), Watershed Management – Guidelines for Indian
Conditions, Omega.
55
ROLE OF NABARD IN AGRICULTURAL
DEVELOPMENT IN TAMIL NADU
R.JAYANTHI
Assistant Professor, Department of Commerce,
Idhaya College for Women, Sarugani
ABSTRACT
Agriculture plays an important role in the development of Indian economy. The
prosperity of our country depends on the agriculture sector. It plays a strategic role
in the economic life of Indian society. In India, agriculture contributes one-third
to the national income. Sixty percent of the export directly or indirectly originates
from the agriculture sector. Agricultural Productivity measures the quantity of
output produced with a given quantity of Inputs. Agricultural productivity reects
improvements in farmers’ production eciency and technology progress. It helps to
increase the farmers’ Income, standard of Living, yield, Landholdings, social status,
and Assets. The main objectives of the study is to analyze the role of NABARD in
agricultural development in Tamil Nadu. Secondary data has been used for the study.
The data were collected form statistical handbook of Tamil Nadu. The researcher
concluded that the institutional banks provided enough number of agriculture credit
to the farmers. It will leads to increase the agricultural productivity.
Keywords: Agricultural productivity, Crop, Operational Landholdings
Introduction
The National Bank for Agriculture and Rural Development (NABARD) was set up
in July, 1982 following after the recommendations of the “Committee to Review
Arrangements for Institutional Credit for Agriculture and Rural Development”. All
major issues related to rural credit until then dealt with by the RBI and the Agricultural
Renance and Development Corporation moved under the control of NABARD.
NABARD thus emerged as the apex institution to play a pivotal role in the sphere
of policy planning and providing renance facilities to rural nancial institutions.
NABARD has also been playing a catalytic role in micro-credit through the channel
of Self-Help Groups (SHGs). NABARD was set up essentially as a development
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
56
bank for promoting agriculture and rural development. Its main function is to provide
renance for rural credit disbursed by the State Co-operative Banks, the Regional
Rural Banks and other nancial institutions as may be approved by the RBI.
Financial institutions are an important component of an ecient nancial
system which is a prerequisite for the economic development of any country. As the
Indian economy comprises a signicant part of rural population, the development
of our economy mainly depends upon rural & agricultural progress, which in turn
is subject to many factors like entrepreneurship, transportation & communication
facility, ecient production techniques, skillful management methods and above all
timely & adequate nancial resources. In this context, the importance of nancial
institutions can hardly be exaggerated. By encouraging the entrepreneurship and by
supplementing the available nancial resources of the small and cottage industries
and by meeting the long & medium term nancial requirements of the agriculture
as well as industrial sectors, these nancial institutions play a signicant role in the
agriculture and rural development of the country.
Review of Literature
K C Chakrabarty (2011)1in his study has analyzed agricultural productivity and
credit – issues. The researcher discusses certain trends in agricultural productivity in
India. Production of rice and wheat were grown to 28.0 per cent and 23.6 per cent,
respectively during 1967–68; while their yields during the same year grew at 19.6
per cent and 24.4 percent, respectively. Nearly 80 per cent of the land holdings in
India are below 2 hectares in size. Unless factor productivity is increased, small farm
agriculture will become un-remunerative. However, the farm is smaller or greater;
there is a great need for marketable surplus in order to get cash income. Therefore,
improving small farm productivity, as a single development strategy, will make the
greatest contribution to the elimination of hunger and poverty. The above literature
has thrown light on the agricultural productivity and credit – issues but not on the
impact of institutional credit on agricultural productivity in Tamil Nadu.
Nawaz Ahawad (2011)2 in his study examined the Impact of institutional credit on
agricultural productivity. The study also shows that long run coecient of cropped
area is highly signicant because the land is a basic input to agricultural sector. This
shows as the intensity ratio of land increased, it also increases the output of this sector.
The empirical results showed that direct credit had positive relation with agricultural
output but had insignicant impact on credit of agricultural output and practically,
there is no sense of using the direct credit. Credit always helps to buy various inputs
for this sector, therefore it had indirect role. The role of institutional credit is more
important as it is a source of providing dierent agricultural inputs which had strong
impact on productivity. In his study, the researcher suggested that agricultural output
is enhanced via three inputs tractors, tube wells, and seeds whereas credit plays
an signicant role in providing tractors and tube wells to this sector. The above
study is concentrated only on agriculture credit provided by institutional credit on
agricultural productivity but the present study focuses on the impact of institutional
credit on agricultural productivity in Tamil Nadu.
ROLE OF NABARD IN AGRICULTURAL DEVELOPMENT IN TAMIL NADU
57
Sakshi1 and Sonia Khajuria (2015)3 in their study on “Agricultural Productivity in
India: Trends, Challenges and Suggestions” after assessing the secondary data related
to the trend of area under cultivation of major food grains, they discuss yield per
hectare, and production of major food grains from reports of Ministry of agriculture
and Farmers welfare, 4th revised estimates of output of Reserve Bank of India,
publications, newspapers etc. They have observed that the data show a slow trend of
increase of production, fall in area under cultivation, low rate of yield per hectare.
These are the issues that Indian agriculture is facing these days most commonly low
productivity of crops. These need to be sorted out with the support of government
by taking new initiatives as well as investments from private sector, cooperation of
farmers, awareness campaign and last but not the least spread of education related
to crops, seeds, fertilizers, irrigation, diversication etc. The above study focuses
on Agricultural Productivity in India: Trends, Challenges and Suggestions, but the
present study is dierent from the above study the researcher focuses on the Impact
of institutional credit on agricultural productivity in Tamil Nadu.
Distribution of Agriculture Credit Provided By Financial
Institutions In Tamil Nadu
Bank plays a major role in providing agriculture credit. Finance in agriculture is
as important as other inputs being used in agricultural production. The prosperity
of the country depends up on the agriculture sector. Bankers play a major role in
providing agricultural credit to the farmers. Lack of nance is one of the fundamental
problems in agricultural productivity and income of rural farmers. Therefore, banks
provide agriculture credit to the farmers. The agriculture credit provided by Financial
Institutions in Tamil Nadu as on March 2020 is Rs.190576.62.The distribution of
agriculture credit provided by nancial institutions in Tamil Nadu
Distribution of Agriculture Credit provided by Financial Institutions as
on March 2020 in Tamil Nadu (Amt in Crores)
Bank Name Agriculture Advances %of Agriculture Advances
State Bank Group 25976. 88 13. 63
Nationalized Bank 102636. 53 53. 85
Private sector bank 51854. 05 27. 20
Regional Rural Bank 10309. 06 5. 40
Co-operative Bank 10645. 95 5. 58
Grand Total 190576. 62
From the above table it could be understood that the total amount of agriculture
credit provided by the nancial Institutions in Tamil Nadu Rs. 1, 90, 576.62 crores.
State Bank of India provided Rs. 25, 976.88 Crores, Nationalized Bank provided
102636.53 Crores, Private sector bank provided Rs.51854.05 Crores, Regional Rural
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
58
Bank provided Rs.10309.06 Crores and Co-operative Banks provided Rs.10645.95
Crores. Therefore, Commercial banks provided more number of agriculture credit
than other banks.
ChannelingGovernmentofIndia Schemes
InterestSubventionScheme
NABARD channeled interest subvention provided bythe GOI to banks (@ 2%)
and farmers (@ 3%) againstprompt repayments on loans under Kisan Credit
Cards(Figure5.6).Recipient farmers included those in animal husbandry and sheries
sector as well.
Similar subvention is extended for loan against negotiable warehousing receipts to
avoid distress sale of produce by small and marginal farmers. Rural cooperative banks
and RRBs are also provided interest ubvention for women SHGs in 250 district
sunder the Deenday al AntyodayaYojana National Rural Live lihood sMission (to
the extent of dierence between their lend in grateand7%, subject to a maximum of
5.5% for loans extended up to 3 lakh at 7% per annum). An additional incentive of
3% is available to beneciary women SHG sonprompt repayment.
Conclusion
In this article, the researcher focuses that, district wise operational landholdings of
agriculture and crop wise productivity in Tamil Nadu during the period from 2011
to 2020. Agricultural credit is one of the input factor to increases the agricultural
productivity. Villupuram district is one of the top most operational landholdings
in Tamil Nadu and The Nilgris is the least cultivable land in Tamil Nadu. There
is increasing trend in the agricultural productivity in paddy from 2817 hectares in
2007-08 to 3809 hectares in 2019-2020, simultaneously there is increasing trend in
other crops such as millets, pulses etc. Therefore, the researcher concluded that, the
institutional banks provided enough number of agriculture credit to the farmers. It
will lead to increase the agricultural productivity.
References
1. C, PARAMASIVAN & Subbiah, Rajaram. (2015). INTERNATIONAL
JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH AN
OVERVIEW OF MICRO INSURANCE INDUSTRIES IN INDIA.
2. Chakrabarty, K.C. (2011).Agricultural productivity and credit – Issues and way
forward, Deputy Governor of the Reserve Bank of India, National Seminar
on Productivity in Indian Agriculture, College of Agricultural Banking (CAB),
Pune, 2 September 2011.
3. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
ROLE OF NABARD IN AGRICULTURAL DEVELOPMENT IN TAMIL NADU
59
4. Devaraj, T.S. (2011). An Analysis of Institutional nancing and agricultural
credit policy inIndia by department of commerce, University of Mysore Hassan,
India.
5. Devi, C., Uma, R. (2012). Impact of Co-operative Loan on Agricultural Sector:
A Case Study of E.G. District Andhra Pradesh, Journal of Arts, Science and
Commerce, Vol III. Issue 4(2).
6. Dhanabhakyam, M., Malarvizhi, B. (2012).A Study on the awareness,
utilization and Problems of using Kisan Credit Card of Canara Bank (With
Special reference to Coimbatore District), International Journal of Marketing,
Financial Services &Management Research Vol.1 Issue 10, October 2012,
ISSN 2277 3622.
7. Dong Jing Lu, F., and Featherstone, A.M. (2010). Eects of Credit Constraints
on Productivity and Rural Household Income in China. A working paper
presented at Center forAgricultural and Rural Development (CARD), Iowa
State University.
8. DuttaUttam, I.andBasakAmit, A. (2008).Appraisal of nancial performance
of urbancooperative banks- a case study, The Management Accountant, case
study, March 2008, P.P 170-174.
9. Duy, V.Q.(2012).The Role of Access to Credit in Rice Production Eciency of
Rural Households in the Mekong Delta, Vietnam CAS Discussion paper No 84.
10. Elizabeth Thomas, R. Keerthana, T.P, and Girish, S. (2018).Perception and
Attitude of Banks towards Agricultural Credit: A Study on Select Commercial
Banks in Kerala, International Journal of Pure and Applied Mathematics,
ISSN: 1311-8080, Volume 119 No. 10 2018, 429-440.
11. Gandhimathi, S., and Vanitha, S. (2010) Determinants of Borrowing Behavior
of Farmers – A Comparative Study of Commercial and Cooperative Banks,
Agricultural Economics Research Review, Vol. 23 January-June 2010. P P 157-164.
12. Govindasamy, A. (2013). Institutional Credit and Agricultural Development,
International Journal of Research in Commerce, Economics & Management,
ISSN 2231-4245, Volume No. 3 (2013), Issue No. 10 (October), Pg.109-111.
13. Priyadharshini, J., & Muthusamy, S. (2016). Green Marketing: Solar Energy
Opportunities and Challenges in India. International Journal of Research &
Business Innovation, 4(1).
14. S.Rajaram and J.Robert Edwin Chester (2020) Organisational Prole of
Women owned Micro Enterprises in Kaniyakumari District., Vol.40., Issue.18.
pp.2057-2059
15. Selladurai, M., & Priyadharshini, J. (2015). Opportunities and Challenges of
Rural Entrepreneurship in India. International Journal of Multidisciplinary
Educational Research, 4(1), 74-81.
16. Subbiah, Rajaram & Professor, . (2020). ORGANISATIONAL PROFILE
OF WOMEN OWNED MICRO ENTERPRISES IN KANIYAKUMARI
DISTRICT. 10.13140/RG.2.2.28424.57608.
17. Subbiah, Rajaram. (2020). ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT.
2394-3114.
60
ROLE OF NABARD IN DEVELOPMENT
OF AGRICULTURAL SECTOR
RUHAMAH ANN BOBEN
Assistant Professor of Commerce,
KPR College of Arts Science and Research, Coimbatore
HANSADVANI K S
Research Scholar in Commerce,
KPR College of Arts Science and Research, Coimbatore
ABSTRACT
“Growth with social justice” has been the basic objective of the development
planning in India since independence. Since the beginning of planned development,
the government through ve-year plans made signicant strides in developing rural
India. The national bank for agriculture and rural development (NABARD) was
setup in July 1982. It became the apex institution to play a pivotal role in the sphere
of policy planning and providing renance facility to rural nancial institutions and
for augmenting their resource base. The paper analysis the role and functions of
NABARD in rural development.
Keywords: NABARD, Social Justice, Independence, Development, Renance
Introduction
National Bank for Agriculture and Rural Development or NABARD is the main
regulatory body in the country’s rural banking system and is considered as the peak
development nance institution which is established and owned by the government
of India. NABARD has been given many responsibilities related to the formulation
of policies, planning, and operations in agriculture and nancial development.The
Government of India established this bank considering all the guidelines of the
National Bank for Agriculture and Development Act of 1981. To put it in simple
terms, you can say that the National Bank for Agriculture and Rural Development
or NABARD is the main and specic bank of the country for agriculture and rural
development.
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL SECTOR
61
Functions of NABARD
1. To serve as an apex nancing agency for the institutions providing investment
and production credit for promoting various developmental activities in rural
areas;
2. NABARD gives high priority to projects formed under Integrated Rural
Development Program (IRDP).
3. It also runs programs for agriculture and rural development in the whole country.
4. NABARAD also recommends about licensing for RRBs and Cooperative banks
to RBI.
5. It also supports “Vikas Vahini” volunteer programs which oer credit and
development activities to poor farmers.
Other Miscellaneous Functions of NABARD
1. Conduct inspections of the RRBs and the co-operative societies, without any
prejudice to the authority of the RBI.
2. All the applications for opening a branch by RRBs or co-operative societies
should be forwarded to the RBI through the NABARD.
3. Copies of all returns submitted by the RRBs and co-operative societies in the
RBIN should also be furnished to the NABARD.
4. NABARD is also empowered to obtain any information or statement from the
RRBs and the co-operative societies.
NABARD’s Past Performance (FY2019-20)
●National bank for agriculture and development reported a 24% growth in its
balance sheet to a record high of Rs.6.57 lakh crore in the nancial year ended
on march 31, 2021.
●In the nancial year 2019-20, its balance sheet stood at Rs.5.32 lakh crore.
●In FY2020-21, they have given a stellar performance. They closed the business
at Rs.6.57 lakh crore, recording a growth rate of 23.5%. This is an all-time high
NABARD chairman G.R. Chintala told reporters.
●He also noted that because of the Governments Aatmanirbhar Bharat package
and hardworking farmers, the agricultural sector recorded a growth of 3.6 percent
last year and is likely to repeat the performance in the current nancial year also.
Contribution of NABARD
The NABARD has touched almost every aspect of rural economy in terms of Financial,
Developmental and Supervision functions
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
62
Financial Contribution
Renance - Short Term Loans: Crop loans are extended to farmers for crop production
by nancial institutions, which support in ensuring food security in the country.
Long Term Loans: NABARD›s long-term renance provides credit to nancial
institutions for a wide gamut of activities encompassing farm and non-farm activities
with tenors of 18 months to more than 5 years.
Rural Infrastructure Development Fund (RIDF): It was set up with NABARD in
1995-96 by the RBI out of the shortfall in lending to priority sector by scheduled
commercial banks for supporting rural infrastructure projects.
Long-Term Irrigation Fund (LTIF): The LTIF in NABARD was setup with an
initial corpus of Rs 20, 000 crore for funding 99 irrigation projects during 2016-17
following announcement in the Union Budget.
Pradhan Mantri Awaas Yojana - Grameen (PMAY-G).
NABARD Infrastructure Development Assistance (NIDA): NIDA has been
designed to complement RIDF.
Warehouse Infrastructure Fund (WIF): Union government created WIF in the
year 2013- 14 with NABARD with a corpus of Rs 5, 000 crore for providing loans
to meet the requirements for scientic warehousing infrastructure for agricultural
commodities in the country.
Credit Facility to Marketing Federations (CFF):
Producer Organizations Development Fund (PODF) for POs & PACS:NABARD
set up Producer Organizations Development Fund (PODF) with an initial corpus
of Rs 50 crore to support and nance Producer Organizations (POs)and Primary
Agriculture Credit Societies (PACS) to operate as Multi Service Centres.
Producer Organisation (PO): it is a legal entity formed by primary producers,
viz. farmers, milk producers, shermen, weavers, rural artisans, craftsmen. A PO
can be a producer company, a cooperative society or any other legal form which
provides for sharing of prots/benets among the members.
Primary Agricultural Credit Society (PACS) is a basic unit and smallest co-operative
credit institution in India. It works on the grassroots level (gram panchayat and
village level). It provides credit to farmers in the form of term loans and recovers the
amount after harvesting of crop from the cultivator.
Developmental Contribution
Kisan Credit Card Scheme for Farmers: The Kisan Credit Card (KCC) scheme
was designed by NABARD in association with the RBI in August 1998 for providing
crop loans.
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL SECTOR
63
RuPayKisan Cards (RKCs): NABARD has been at the forefront of technology
revolution by helping rural nancial institutions in providing RuPayKisan Cards
(RKCs) to all their farmer clients.
Tribal Development: NABARD has been closely associated with tribal
development and sustainable livelihoods through orchard-based farming systems.
As an integral component of NABARD’s Natural Resource Management (NRM)
policy of providing sustainable livelihoods, NABARD laid special emphasis on
providing support for holistic development of tribal communities with orchard
establishment as the core element. The implementation of comprehensive Adivasi
Development Programmes (ADPs) in Gujarat since 1995 and in Maharashtra since
2000 had provided several insights for NABARD in framing strategies for holistic
development of tribal regions.
With the implementation of tribal development programmes, based on the
successful experience of Adivasi Development Programmes, NABARD embarked
upon an ambitious programme of replicating the wadi (small orchard) model across
the country. In this direction, NABARD set up a Tribal Development Fund (TDF) with
a corpus of Rs. 50 crores in the year 2003-04. The corpus was augmented from time to
time. All projects under TDF are implemented by partnering with State Governments,
Government of India, NGOs and Corporates.
The objective of the Fund is to create replicable models of integrated development
of tribal families on participatory basis, through adoption of sustainable income
generating activities and to build and strengthen tribal institutions, which enable
mainstreaming of the communities by improving their socio-economic status. Over
the years, supporting the tribal communities with wadi as the core component, has
been the focus area of tribal development programmes. The programme has grown
signicantly and has been one of the agship Natural Resource Management (NRM)
programmes of NABARD.
Climate Resilient Agriculture
Umbrella Programme on Natural Resource Management (UPNRM):The UPNRM
started in 2007, works at enhancing investments in rural areas, creating business
opportunities and enabling rural communities to sustainably utilize their natural
resources.
Micronance Sector:NABARD had launched the Self Help Group-Bank
Linkage Programme (SHG-BLP) in 1992. Over 23 lakh SHGs were credit-linked
during 2017-18 nancial year.
EShakti: In a bid to digitize SHGs, project EShakti was launched on 15 March
2015.
Skill Development:
Promoting an entrepreneurial culture among the rural youth and encouraging them
to start enterprises in the rural o-farm sector has been NABARD’s strategy for over
three decades.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
64
Marketing Initiatives: For providing marketing opportunities to rural artisans and
producers, NABARD has traditionally facilitated their participation in exhibitions
across the country.
Incubation Centres
To commercialize innovations and to shape agricultural entrepreneurship in
the country, NABARD extended support to Chaudhary Charan Singh Haryana
Agricultural University, Hisar and Tamil Nadu Agricultural University, Madurai
for establishing Agri Incubation Centres with a total nancial commitment of Rs
23.99 crore.
Challenges
As an ospring of the RBI, NABARD shares the work culture, ethos and development
orientation of its parent institution.Snapping of this link (the transfers of 0.4 per cent
equity of RBI in NABARD to the Union Government under NABARD Act 2017) has
led to a great disadvantage for both the RBI and NABARD.This has weakened any
role or participation RBI can have over its activities.
A strong relationship between the central bank and the development institution
will help the cause of agriculture and rural development at a critical juncture when
the country is faced with a serious agrarian crisis.Cost of nancing has gone up since
market borrowings of NABARD add up to 80 per cent of its resources. Member-driven
and de-bureaucratized cooperative structures have to ll-in the gaps of institutional
credit left open by commercial banks.
The north-eastern states has been getting little share of the NABARD’s credit funds.
The northeast gets 1% of the credit, leading to farmers trapping in the net of money-
lenders.The penetration of banks in insurgency-hit state is less and it should be
stepped up.
Achievements of NABARD
NABARD has launched the self-help group-bank linkage program (SHG-BLP) in
1992. The program has empowered 112.23 lakh self-help groups (SHG’s) and 13.5
crore rural households in India as on 31 march 2021. Nearly 28.87 lakh SHG’s availed
credit support of Rs.58070 crore from various banks during 2020-21 at an average
of Rs.2.01 lakh per SHG. 41.30 lakh JLGs were promoted and nanced by banks
during 2020-21.
Conclusion
More than 75 per cent people of India depend on agriculture. Rural infrastructure
investments help in raising the socio-economic status of the rural people through
increased income levels and quality of life.NABARD being an apex institution for
providing credit facilities and capacity building to Indian rural economy, it has great
a opportunity for poverty reduction and socio-economic empowerment of rural India
ROLE OF NABARD IN DEVELOPMENT OF AGRICULTURAL SECTOR
65
References
1. C, PARAMASIVAN & Subbiah, Rajaram. (2015). An Overview of Micro
Insurance Industries in India.
2. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
3. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
4. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and its
Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
5. S.Rajaram (2017) Empowering Indian Economy Through GST in India,
Economic Challenger., Issue 77., pp.46-50
6. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study On Satisfaction Of
Tourists Visiting Yercaud Of Salem District. Asia Pacic Journal of Research In
Business Management, 4(3), 1.
7. Subbiah, Rajaram. (2020). KAAV INTERNATIONAL JOURNAL OF
ECONOMICS, COMMERCE & BUSINESS MANAGEMENT.
8. Subbiah, Rajaram. (2020). MICRO INSURANCE -A CONCEPTUAL
ANALYSIS.
Awareness and
Promotions of
NABARD
67
FARMER’S AWARENESS ON ROLE OF
NABARD IN PROVIDING FINANCIAL
HELP THROUGH KERALABANKS
RESHMY N S
Assistant professor, St. Aloysius College,
Elthuruth, Thrissur
ABSTRACT
The Indian state is an agricultural-based economy, meaning the rural sector forms the
spine of the overall economic development. A majority of the country’s population
consists of the rural population, amounting to a total of 65% of the total population.
The rural economies play an indispensable part in the overall growth and development
of the nation. The Indian nancial system is largely divided into 2 broad categories;
namely the Organized and the Unorganized Financial sectors. While the organized
nancial sector covers banks, capital markets, and other nancial institutions.
NABARD by virtueof its Financial, Developmental and Supervisory role
is touching almost every aspect of rural economy, including providing renance
support, building rural infrastructure, preparing district level credit plans, guiding and
motivating the banking industry in achieving credit targets, supervising Cooperative
Banks and Regional Rural Banks, helping banks to develop sound banking practices,
enabling them to on-board to the CBS platform, designing new projects for rural
development, implementing development schemes, training handicraft artisans and
providing them a marketing platform for selling their articles, etc.
Government have constituted the Kerala co-operative employee’s welfare fund
with the object of welfare of the employees of co-operative societies registered
or deemed to be registered/constituted/ established under the Kerala co-operative
societies act-1969.
The study aims to identify the various nancial purpose behind taking loan from
kerala banks and to analyse the awareness of farmers towards various schemes of
NABARD And to know whether there is any relationship between gender and number
of farmers taken loan from kerala banks. Primary data collected from the people by
questionnaire. And also use secondary data from websites, journals etc..
Keywords: Micro nance, NABARD, RuralIndia, CBS
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
68
Introduction
The CRAFICARD Committee’s interim report, submitted on 28 November 1979,
outlined the need for a new organisational device for providing undivided attention,
forceful direction and pointed focus to credit related issues linked with rural
development. Its recommendation was formation of a unique development nancial
institution which would address these aspirations and formation of National Bank
for Agriculture and Rural Development (NABARD) was approved by the Parliament
through Act 61 of 1981.
NABARD came into existence on 12 July 1982 by transferring the agricultural
credit functions of RBI and renance functions of the then Agricultural Renance
and Development Corporation (ARDC). It was dedicated to the service of the nation
by the late Prime Minister Smt. Indira Gandhi on 05 November 1982. Set up with an
initial capital of Rs.100 crore, its’ paid-up capital stood at Rs.14, 080 crore as on 31
March 2020. Consequent to the revision in the composition of share capital between
Government of India and RBI, NABARD today is fully owned by Government of
India.
The vision of the NABARD wasDevelopment Bank of the Nation for Fostering
Rural Prosperity. And it was existed for Promote sustainable and equitable agriculture
and rural development through participative nancial and non-nancial interventions,
innovations, technology and institutional development for securing prosperity. The
Government of India encourages farmers in taking up projects in select areas by
subsidizing a portion of the total project cost. All these projects aim at enhancing
capital investment, sustained income ow and employment areas of national
importance. NABARD has been a proud channel partner of the Government in some
of these schemes shown in this section.
Direct Lending to Cooperative Banks is an additional short-term line of credit
to StCBs and District Central Cooperative Banks (DCCBs) for diversication of
their loan portfolio and enhancing their earnings through protable lending. The
credit limit is sanctioned to nancially strong StCBs and DCCBs for purposes such
as working capital, repair and maintenance of farm equipment and other productive
assets, storage/grading/packaging of produce, marketing activities, and crop loans
above ₹ 3.00 lakhs, etc. Sanctions and disbursements stood at ₹ 11, 890 crore and ₹
7, 373.49 crore respectively during FY 2020-21.
As the kerala banks provide various nancial help to the farmers in order
to increase the development of agricultural sector and also rural development.
Agricultural credit is considered as one of the most basic inputs for conducting all
agricultural development programmes. In India there is an immense need for proper
agricultural credit as the economic condition of Indian farmers are very poor. From
the very beginning the prime source of agricultural credit in India was money lenders.
After independence the Govt. adopted the institutional credit approach through various
agencies like co-operatives, commercial banks, regional rural banks etc. to provide
adequate credit to farmers, at a cheaper rate of interest. Moreover with growing
modernization of agriculture during post-green revolution period the requirement of
agricultural credit has increased further in recent years.
FARMER’S AWARENESS ON ROLE OF NABARD IN PROVIDING FINANCIAL HELP
69
Statement of the problem
The problem is to identify the various nancial purpose behind taking loan from
Kerala banks by the farmers with special reference to farmers in Thrissur district.And
also to analyse the attitude of farmers towards various schemes of NABARD. And to
know whether there is any relationship between gender and number of farmers taken
loan from kerala banks.
Objectives of the study
●To identify the various nancial purpose behind taking loan fromkeralabanks
●To analyse the awareness of farmers towards various schemes of NABARD .
●To know whether there is any relationship between gender and number of farmers
taken loan from kerala banks.
Research methodology
The study is based on both primary and secondary data. The analytical research
design is used to identify thevarious nancial purpose behind taking loan from kerala
banksand the level of awareness of farmers towards these schemes of NABARD.
The target population is taken as farmers in Thrissur District, Kerala. Convenience
sampling method is used to select 100 respondents. The data was collected by
conducting a survey using questionnaire that was designed to collect information
regarding benets of farmers from cooperative banks. Primary data collected from
the people by questionnaire through open ended questions were also recorded.
Thus, the questionnaire is both subjective as well as objective in nature and also
use secondary data from websites, journals etc. For data analysis, chi-square test,
descriptive statistics and pie-charts have been used.
Review of literature
The RBI Governor, Y. V. Reddy (2007) gave a simple denition of nancial
inclusion as “Ensuring bank account to all families that want it”. He said it would be
the rst step towards reaching the goal of bank credit as a human right as advocated
by Nobel laureate Professor Mohammed Yunus. Now the micronance service
providers include apex institutions like National Bank for Agriculture and Rural
Development (NABARD), Small Industries Development Bank of India (SIDBI)
and RashtriyaMahilaKosh (RMK). At the lower level we have commercial Banks,
Regional Rural Banks and cooperatives to provide micronance services.
Dutta, P (2011) studied the contribution of SHG-bank linkage program initiated
by NARABRD in poverty reduction and social empowerment of the people, by
comparing the preSHG and post-SHG scenario. It also studies the regional and
intra-regional disparity in the development of SHG-Banklinkage program among
the states. The nding shows as a result of collective eort of the Indian government,
banks, NGOs and SHGs, more numbers of rural people now have access to the
benets of the modern nancial system.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
70
V. N. (2010) elaborate about an overview of evolution of micronance for socio
economic development. The research ndings suggest that the Self Help Groups
contribute substantially in pursuing the conditions of the female population up and
through that chip in poverty eradication.
Anwarul Hoda, and Prerna Terway (2015), in their research paper “Credit Policy
for Agriculture in India - An Evaluation”, mentioned that a targeted debt relief is
an appropriate response for alleviating farmer distress and cannot be criticized
for vitiating the environment for loan operations in future. The Prime Minister’s
rehabilitation program for suicide-prone districts was doubly benecial as it
combined debt relief with a public investment and private investment program mainly
in irrigation and horticulture. The loan waiver scheme of 2008 was followed by
another loan waiver of a large magnitude called “Runa Ma”, in 2014 in the state of
Andhra Pradesh and the newly formed state of Telangana. Despite several warnings
and criticism from the Reserve Bank of India and the Indian Banking Association,
the scheme was rolled out in these two states. While it will cost Rs.40000 crore in
Andhra Pradesh, it is expected to cost Rs. 17000 crore in Telangana
Dr. V. J. REmerlson Mosses and Mr. G. Krishnamoorhty(2014), in their piece of
writing “Impact of Micronance and SHG – An Overview”, revealed that levels of
poverty are high and because of this problem Self Help Groups movement occupies
a signicant agenda in the poverty reduction and empowerment of poor people.
Micronance program is important institutional device to provide small credit to the
rural people in order to alleviate poverty and SHG bank linkage have the potential to
minimize the problems of inadequate access of banking services to the poor.
R. Uma Devi and S. R. K. Govt(2012), in their article “The Role of Credit
Co-Operatives in the Agricultural Development of Andhra Pradesh, India”,
concluded that the advantages enjoyed be the beneciaries through improved
technology with the eorts of the banks in terms of high production, increased net
returns and subsidiary incomes. There is further need to enlighten the farmers about
the superiority and protability of improved technology through the extensive credit
services. By and large the role of Credit Cooperatives is highly impressive and
clearly exhibited in the socio-economic development gained by the beneciaries.
Theoretical framework
Functions of NABARD NABARD was set up essentially as a development bank
for promoting agriculture and rural development. Its main function is to provide
renance for rural credit disbursed by the State Cooperative Banks, the Regional
Rural Banks and other nancial institutions as may be approved by the RBI. The
important functions of NABARD are as follows:
●Providing nance and also renance for production and marketing in the rural
areas.
●Coordinating and advising the operations of institutions engaged in rural credit.
FARMER’S AWARENESS ON ROLE OF NABARD IN PROVIDING FINANCIAL HELP
71
●Promoting research in agriculture and rural development. Besides this pivotal
role, NABARD also:
●Acts as a coordinator in the operations of rural credit institutions
●Extends assistance to the government, the Reserve Bank of India and other
organizations in matters relating to rural development
●Oers training and research facilities for banks, cooperatives and organizations
working in the eld of rural development
●Helps the state governments in reaching their targets of providing assistance
to eligible institutions in agriculture and rural developmentActs as regulator
for cooperative banks and RRBs identication of exploitable potentials under
agriculture and other activities available for development through bank credit.
●Renancing banks for extending loans for investment and production purpose in
rural areas.
●Providing loans to State Government/Non-Government Organizations (NGOs)/
Panchayati Raj Institutions (PRIs) for developing rural infrastructure.
●Supporting credit innovations of Non-Government Organizations (NGOs) and
other nonformal agencies.
●Extending formal banking services to the unreached rural poor by evolving a
supplementary credit delivery strategy in a cost-eective manner by promoting
Self Help Groups (SHGs)
●Promoting participatory watershed development for enhancing productivity and
protability of rain fed agriculture in a sustainable manner.
●On-site inspection of cooperative banks and Regional Rural Banks (RRBs) and
o-site surveillance over health of cooperatives and RRBs. (www.nabard.org)
Role of NABARD NABARD is the apex institution in the country which looks
after the development of the cottage industry, small industry and village industry,
and other rural industries.
NABARD also reaches out to allied economies and supports and promotes
integrated development. Now days the long term and short-term credit needs of
these institutions are also being met by National Bank for Agricultural and Rural
Development (NABARD). The scope of the operations of NABARD is large indeed.
Besides providing nance to credit institutions, it is providing innovations in regard
to formulation of schemes, monitoring of implementation, evaluation of results and
evolution of suitable supporting structures of all kinds of agricultural activities. It is
performing the various functions assumed by it smoothly and eciently and to help
NABARD discharge its duty, it has been given certain roles as follows:
1. Serves as an apex nancing agency for the institutions providing investment and
production credit for promoting the various developmental activities in rural
areas
2. Takes measures towards institution building for improving absorptive capacity
of the credit delivery system, including monitoring, formulation of rehabilitation
schemes, restructuring of credit institutions, training of personnel, etc.
3. Co-ordinates the rural nancing activities of all institutions engaged in
developmental work at the eld level and maintains liaison with Government of
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
72
India, State Governments, Reserve Bank of India (RBI) and other national level
institutions concerned with policy formulation
4. Undertakes monitoring and evaluation of projects renanced by it.
5. The Bank renances the nancial institutions which nances the rural sector.
6. It also keeps a check on its client institutes.
7. It regulates the institution which provides nancial help to the rural economy.
8. It provides training facilities to the institutions working in the eld of rural
upliftment.
NABARD’s renance is available to State Co-operative Agriculture and Rural
Development Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural
Banks (RRBs), Commercial Banks (CBs) and other nancial institutions approved
by RBI. While the ultimate beneciaries of investment credit can be individuals,
partnership concerns, companies, Stateowned corporations or co-operative societies,
production credit is generally given to individuals. NABARD is also known for its
‘SHG Bank Linkage Programme which encourages India’s banks to lend to self-
help groups (SHGs). Because SHGs are composed mainly of poor women, this has
evolved into an important Indian tool for micronance. By March 2006, 22 lakh SHGs
representing 3.3 core members had to be linked to credit through this programme.
Credit Facilities Offered by NABARD NABARD also offers various
credit facilities like:
●Rural Infrastructure Development Fund (RIDF) RIDF is a fund to promote
the investment in infrastructure for agriculture. State Governments as well as
Panchayati Raj Institutions (PRIs), Non- Governmental Organisations, Self-Help
Groups, etc. are eligible to borrow out of RIDF for their schemes like ongoing
Irrigation, Flood Protection, Watershed Management projects, rural Road &
Bridge projects, Primary and Secondary Schools, Primary Health Centres,
Village Haats, Joint Forest Management, Terminal and Rural Market/Godowns,
Rain Water Harvesting, Watershed development, ood protection, drainage, Cold
Storage, Riverine Fisheries, Fishing Harbour & Jetties, Mini/Small Hydel Projects
in Power Sector, Rural Drinking Water Supply Schemes, Citizen Information
Centres, Modern abottoir, Seed/Agri./Hori. Farms, etc.
●Kisan Credit Cards: NABARD has formulated a Model scheme for issue of
Kisan Credit Cards to farmers, on the basis of their land holdings, for uniform
adoption by banks, so that the farmers may use them to readily purchase
agricultural inputs such as seeds, fertilisers, pesticides, etc. and also draw cash
for their production needs. Farmers have to get in touch with Researcher’s banks
to use this facility
●Micro Credit Innovation scheme, Under the MCIS, NABARD facilitates
sustained access to nancial services for the unreached poor in rural areas through
various micronance innovations in a cost eective and sustainable manner.
●Renance for Rural Housing Facilities scheme RRHFS provides Credit to
the Individuals, Cooperative Housing Societies, Public Bodies, Housing Boards/
FARMER’S AWARENESS ON ROLE OF NABARD IN PROVIDING FINANCIAL HELP
73
Improvement, Trusts, Local Bodies, Voluntary agencies and NGOs, Housing
Finance Companies registered, with NHB for nance extended by them to
housing projects in the ‘rural’ areas only. The nance is provides for Construction
of New Houses as well as
Repairs/Renovation of existing houses in rural areas/ Rainwater Harvesting
Structures/ Sanitary Latrines, etc.
●A Research and Development Fund has been established by the bank with
the objective of acquiring new insights into the problems of agricultural and
rural development through in-depth studies and applied research and trying
out innovative approaches backed up by technical and economic studies. It
includes facilities for training, dissemination of information and promotion of
research by undertaking studies techno-economic and other surveys in the elds
of agriculture, rural banking and rural development. The eligible Institutes for
the fund are Approved research institutions, organisations and other agencies
which are engaged in action-oriented, applied research, Individuals or groups
of individuals would also be extended assistance provided they are sponsored
by suitable organisations which would certify the proper use and accounting
of funds, Private and commercial organisations are not normally eligible for
assistance under the this fund.
●Swarojgar Credit Card Scheme: It aims at providing adequate and timely
credit i.e. Working capital or block capital or both to small artisans, handloom
weavers, service sector, shermen, self employed persons, rickshaw owners,
other microentrepreneures, SHGs, etc from the banking system in a exible,
hassle free and cost eective manner. Borrowers in urban areas can be covered
under SCC Scheme. Small business covered under priority sector is also eligible
under SCC Scheme. Any scheme/project that is income generating/ employment
generating may be covered under the scheme.
●Farmers’ Club Programme is a grassroots level informal forum. Such Clubs are
organised by rural branches of banks with the support and nancial assistance of
NABARD for the mutual benet of the banks concerned and rural people. The
broad functions being to coordinate with banks to ensure credit ow among its
members and better bank borrower relationship interface with subject matter.
Data analysis and interpretation
Various nancial purpose behind taking loan from Kerala banks
Financial purpose No. Of respondents Percentage
Business purpose 29 29%
Agricultural purpose 36 36%
Housing loan 8 8%
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
74
Marriage purpose 20 20%
Education purpose 7 7%
Total 100
From the above table reveals that most of respondents taking loan from the bank for
agricultural purpose and business purpose, and the least of the respondent taking
loan for the purpose of Housing and Education.
Weighted average mean
Analyses on the awareness of farmers towards various schemes
of NABARD
Schemes Very high
(5)
High
(4)
N
(3)
Low
(2)
Very
low
(1)
Weighted
total
Average
mean
Kisan Credit card 50 60 90 18 4 222 2. 22
Swarojgar Credit
Card Scheme
75 48 30 16 10 179 1. 79
Research and
Development Fund
80 48 24 8 1 161 1. 61
Renance for Rural
Housing Facilities
Scheme
80 60 18 16 2 176 1. 76
Farmer’s Club
Programme
73 80 23 35 6 217 2. 17
Micro Credit
Innovation Scheme
80 12 45 32 14 183 1. 83
Rural Infrastructure
Development Fund
64 34 30 45 12 185 1. 85
The above table shows that the most of the respondents are aware about Kisan
Credit Card and Farmer’s Club Programme. And the least of the respondents aware
about Research and Development Fund andRenance for Rural Housing Facilities
Scheme.
Chi-square test: Independence of two attributes
●H0: There is association between gender and number of farmers taken loan from
Kerala banks.
●H1: There is no association between gender and number of farmers taken loan
from Kerala banks.
FARMER’S AWARENESS ON ROLE OF NABARD IN PROVIDING FINANCIAL HELP
75
Gender Whether or not the loan taken from Kerala banks
Yes No Total
Male 65 7 72
Female 20 8 28
Total 85 15 100
X2 = (ad-bc) 2*N/(a+b)(c+d)(a+c)(b+d)
= (520-140)2*100/(65+7)(20+8)(65+20)(7+8)
= 5. 61
Level of signicance = 5%, Degree of freedom = (r-1) (c-1) =1, Table value=3.84
Calculated value is more than the table value. So, we reject the null hypothesis. That
means there is no association between gender andnumber of farmers taken loan from
Kerala banks.
Suggestions
●Provide various workshop and training to the farmer’s about the various schemes
of NABARD
●Conduct seminars relating to loan provided by the banks on various purposes.
●Provision of various reserves for the purpose loan to farmers.
●Conduct inspections of the RRBs and the co-operative societies, without any
prejudice to the authority of the RBI.
●All the applications for opening a branch by RRBs or co-operative societies
should be forwarded to the RBI through the NABARD.
●Copies of all returns submitted by the RRBs and co-operative societies to the RBI
should also be furnished to the NABARD.
●NABARD is also empowered to obtain any information or statement from the
RRBs and the co-operative societies.
●The bank sta may provide credit counseling to the farmers with a human touch
and focus on building a delighted customer environment.
●The interest charged should be nominal to cover just the operational expenses of
the bank in providing loans to the farmers considering the social needs and the
heavy dependence on agriculture
●Agricultural borrowers are to be educated and encouraged to use high tech
banking facilities
Conclusion
From the above discussion it shows that NABARD is working for the 360 degree
development of rural India. Every year the nancial assistance received by NABARD
and the disbursement made out of it are increasing. In short, we can say that NABARD
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
76
is providing rural India all round assistance and proved to be an institution where
“Growth with Social Justice” exists. It is, in brief, an institution for the purpose of
renance; with the complementary work of directing, inspecting and supervising the
credit- ows for agricultural and rural development.The study reveals that the main
purpose behind which getting loan from bank is agricultural and business needs. And
the respondents are largely aware about the NABARD Scheme of Kisan Credit Card
and Farmer’s Club Programme. there is no association between gender and number of
farmers taken loan from Kerala banks. That means gender is not a factor inuencing
the loan taken from banks by the respondents.
References
1. C, PARAMASIVAN & Subbiah, Rajaram & Professor, Assistant. (2016).
Jeevan Mangal Micro Insurance in India-A Performance Approach in South
Zone. International Journal of Trend in Research and Development. 3. 320-323.
2. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
3. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
4. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
5. Paramasivan, C., & Rajaram, S. (2015). JEEVAN MADHUR MICRO
INSURANCE IN SOUTH ZONE-A BIRDS EYE VIEW STUDY.
6. Priyadharshini, J., & Muthusamy, S. (2015). A survey on investors’ favourite
investment avenues in Salem. International Journal of Commerce (IJC), 2(2).
7. S.Rajaram (2016) Prole of Micro Insurance Products-Individual v/s Group
Categories, Economic Challenger., pp.66-70
8. Selladurai, M., & Priyadharshini, J. (2017). Empowering India Through New
Start-up Technopreneurs. Intercontinental Journal of Marketing Research
Review, 5, 267-274.
9. Subbiah, Rajaram. (2020). AAM AADMI BIMA YOJANA MICRO
INSURANCE PERFORMANCE ANALYSIS IN SOUTH ZONE.
10. Subbiah, Rajaram. (2020). ANALYTICAL STUDY ON VISIBLE BALANCE
OF PAYMENT IN INDIA. 40. 129-132.
77
AWARENESS OF AGRICULTURAL
MOBILE APPLICATIONS AMONG THE
TINY FARMERS
C.GOWTHAM
Assistant Professor, Department of Commerce
KPR College of Arts Science and Research, Coimbatore
S.DHANYA SHRI
II B. Com, Department of Commerce
KPR College of Arts Science and Research, Coimbatore
ABSTRACT
The aggressive growth of smartphones is creating various opportunities for all
developing economies towards nation building, social development and innovations
from the bottom level. One such area with the greatest potential to bring rapid
increase in the productivity and sustainability is the mobile applications for rural
and agricultural development. The mobile applications (M-apps) from the Farmers’
Portal - Government of India serve numerous uses to the producers of all levels. Their
main uses like weather prediction, market prices, agro advisories, plant protection
etc. are of vital importance to eliminate the problems of farmers and to improve
their standard of living. This paper tries to explore the problems faced by the tiny
farmers and check the awareness of tiny farmers to wards the mobile applications.
The methodology adopted for this study is to collect primary data through a well-
structured questionnaire and interview schedule method. The data will be analyzed
through basic statistical tools using the MS Excel andSPSS.
Keywords: Farmers, problems, smartphones, developing economy, government,
M-apps and awareness.
Introduction
Agriculture, with its allied sector, is the largest source of livelihoods in India.More
than 70% of rural households still depend primarily on agriculture for their livelihood
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
78
where most of the farmers being small and marginal.When we think about agriculture
what comes to our mind is the images of tractors bullock-cartsand people working
hard on the elds.However the time has changed and now technology has seeped into
the agricultural sector.Modern agriculture is an approach to the agricultural system
which is characterized by heavy use of farm machinery, innovative farming practices
and technology which helps in increasing the eciency of farming.The present
economic conditions and government policies of India necessitates the adoption of
smart farming.The agricultural sector needs a huge up-gradation in order to survive in
the dynamic conditions of Indian economy.It helps in tackling the increasing demand
for agricultural produce in the country.Modern agriculture lead to the increase in the
importance of mobile applications which provide various advantages. It provides
better access to information regarding seeds, weather, climate, farm machinery and
provides better connect with the market and distribution network.
Recent studies clearly states that who is using which service and what the
demands of the users are.The mobile app developers are able to understand how a
particular service ts into the farmers’ lives.Therefore there various apps and services
which will be very benecial for the farmers.
Objectives
1. To nd the problems faced by the tiny sector farmers.
2. To nd the awareness of farmers on mobile applications for agriculture.
3. An analytical view of the kisansuvidha portal.
Statement of the Problem
The primary statement of problem for the study is the shift to digitalization of
economy. The move towards digitalization insisted the use of digital products in all
forms of business and profession as well. Agriculture too digitalized now to a greater
extent. Because all forms of agricultural services like applying for crop insurance,
information relating to seed and fertilizer availability, marketing of agricultural
produces etc. are now largely made through digital mode. The producers are also in
a state to shift their activities mostly through digital way. The use of smartphones
necessitated to be aware of the m-apps made for agriculture and rural development.
Research Methodology
The data analyzed in the study are of primary sources and was based on a well-
structured questionnaire collected from the tiny farmers in the Coimbatore district.
The respondents were chose on the basis of network or snowball sampling method,
a non-probability sampling method. Total of 114 respondents lled the questionnaire
and after a scrutiny 108 responses were taken to the study. Secondary data were taken
from various government agriculture related web portals.
AWARENESS OF AGRICULTURAL MOBILE APPLICATIONS AMONG
79
Literature Review
There are a variety of Mobile app developments in the marketplace, designed to
make farming easy. Some mobile applications have designed to specically provide
information services to farmers. In this work various research paper and Mobile App
have reviewed related to agriculture sector.
Santosh G. Karkhile, Sudarshan G. Ghuge (2015) “A Modern Farming Techniques
using Android Application” 2015-In this paper researcher given an entire idea about
develop a mobile phone based solution that helps in farm management, leads to
agricultural yield improvement and helps in farm maintenance. Researcher explained
that traditional farming tolerated unexpected environment where as, Modern farming
provide expected environment by weather forecasting. Traditional farming requires
large amount of labour and dierent activities for conducting farming. Alternatively
Modern farming does not require huge amount of labour as the mobile, machines
and new technology take care of the whole thing. This mobile application provides
real time weather information, news and market prices at diverse locations and
all information is provided in local languages. So, all the outcomes of researcher
application are aid farmer to improve their agriculture to yield more earnings. author
expand the System Architecture for the farmer app which include dierent operations
like registration of farmers Weather forecasting, News and feeds, Multiple language
support, Market trading.
Suporn Pongnumkul, Pimwadee Chaovalit, Navaporn Surasvadi (2015). This
research represents reviews on Smartphone applications that use Smartphone built-in
sensors to give agricultural solutions. According to agriculture function applications
are categorized. Researcher literature review describe dierent types of agriculture
application like farming applications, farm management applications, information
system applications and extension service applications. Various functionality in
farming make simple using this application like Disease Detection and Diagnosis,
Soil Study, Crop Water Needs Estimation, HR Management, Information System
Applications , Extension Service Applications. This review paper focus that GPS and
cameras are the trendiest sensors used in the smart phone application for farming.
Trend Alcardo A. Barakabitze , Edvin J. Kitindi (2015)-In this paper researcher
explores how an extensive range of Information and Communication Technologies
(ICTs) accessible in Agricultural Research Institutes (ARIS)and how farming
researchers make eective use of a wide range of ICT tools allied to crop variety, land
use, irrigation, soil nutrients requirement, weather report, pest and disease control,
awareness about crops, pollution control, and new farming techniques.
K. Lakshmisudha and Swathi Hegde (2016) - Author represented wireless sensor
networks which can help bring about a great revolution in automating agriculture eld.
This research project makes plant monitoring process easy as well as reduced human
eort in farming day to day activity. User can produce customized environment to the
plants. This application provides most favourable growth conditions using dierent
sensors.
Sotiris Karetsos, ConstantinaCostopoulou, Alexander Sideridis (2014) - In this
paper author take review on smart phone use and capabilities in farming. Based
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
80
on dierent agriculture case study author propose mobile government app for
the Android operating system. The mobile government app is based on an earlier
developed electronic government system for farmers. Such apps look forward to be a
promising solution for farmers enabling them to access government information and
transact with public agencies at their convenience and at a location of their choice.
Data Analyses and Interpretation
In the study 67% are male, 31% belonged to the age category of Less than 30 years
where 25% belonged to age above 50 years. 31% of the respondents are Under
Graduates and 24% of respondents do not possess formal education qualication.
34% of the respondents hold 2-4 acres of land and at the same time 31% of the
respondents hold less than 2 acres of cultivable land. 43% of the respondents have
an annual income of less than Rs. 1 Lakh. 52% of the respondents choose organic
method of farming where others follow inorganic method of farming.
Problems faced by the tiny sector farmers
Sl. No. Problems Mean Score (Out of 5) Rank
1 Unavailability of good quality of seeds 3.92 3
2 Lack of modern equipment 3.86 5
3 Poor irrigation facilities 3.78 6
4 Lack of storage facilities 3.93 2
5 Dealing with local traders and
middlemen
3.92 3
6 Inadequate transport facilities 3.99 1
A ve-point scaling was used in the questionnaire and mean score was calculated
to rank the problems faced by the farmers. The inadequate transportation facility is
the mostly faced problem of the farmers, as they are in rural area and experience huge
diculties in reaching the produces to the agricultural market, as most of the markets
are located in urban areas or in the district headquarters.
The farmers might be forced to store the agricultural produces due to less pricing
in the market or delay in the procurement of produces will lead to spoilage and other
eects. The inadequate storage facilities in the rural area is the second most problems
faced by the farmers.
They are followed by intervention of local traders and middlemen in the
agricultural marketing, unavailability of quality seeds, lack of modern equipment
in agriculture and poor irrigation facilities are the problems faced by the farmers.
AWARENESS OF AGRICULTURAL MOBILE APPLICATIONS AMONG
81
Access to agricultural information
Sl. No. Sources of Information Access Percentage Rank
1 Newspapers 47% 2
2 Television 52% 1
3 YouTube 32% 4
4 WhatsApp 28% 5
5 Family and Friends 45% 3
Farmers mostly rely on the Television for agriculture related information as
everyone have access to television in this digital world. It is followed by newspaper,
a printed medium of mass communication. They are followed by family and friends,
YouTube and WhatsApp for agricultural information.
Usage of mobile application for agriculture
From the study, a contradicting result showed that only 12% of the respondents use
m-apps for agriculture related activities. The most of the respondents do not use any
specialised application or access to web portal for agricultural purposes.
Awareness of agricultural mobile application
Sl. No. Factors Mean Score (Out
of 3)
Rank
1 Frequently updating about availability of credit
facilities and crop insurance
2.57 3
2 Appropriate details about availability of farm
machinery
2.42 5
3 Information on current weather forecast for the next
ve days
2.62 1
4 Timely information on the prevailing market
conditions
2.39 6
5 Details about availability of quality fertilizers and
seeds
2.59 2
6 Regular provision on Government schemes 2.52 4
From the study, it is interpreted that m-apps users are aware of the information
on current weather forecast and for the next ve days followed by details about
availability of quality fertilizers and seeds. They are followed by usage of m-apps
for credit facilities and crop insurance, updating government schemes, availability of
farm machinery or equipment and information about prevailing market conditions.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
82
Few of the used apps are kisansuvidha, kishribhavan, agrio, agri app and green
leaf.
Suggestions
It is now essential to know about the agricultural portals and make use of the available
information for better productivity and encourage agriculture among the farmers.
The decrease in the prot earning, lack of adequate facilities like transportation,
insurance, credit, storage etc. have decreased the number of producers over the last
few decades. The government tried to address these issues and gured to sort all
issues by creating portals for agriculture and rural development. It is important to
create an awareness among the farmers and youths about the facilities created through
kisansuvidha portal.
Conclusion
It can be concluded that the Government has a huge role to play in the awareness
creation of the kisansuvidha web portal. It is a great initiative to eliminate or to
reduce the role of local traders or middle men in the agricultural marketing through a
government web portal. But it is also worthy to have timely updation and coverage of
all areas of the country, all varieties of crops and seeds, all local and regional markets.
It is also important to create a sense of reliability of the facilities and trust on the web
portal among the users is also to be taken care of. The study also suggests a detailed
analytical review on the kisansuvidha web portal and study on the users of the portal.
References
1. K. Lakshmisudha and SwathiHegde (2016) “Smart Precision based Agriculture
using Sensors”.
2. Santosh G. Karkhile, Sudarshan G. Ghuge (2015) “A Modern Farming Techniques
using Android Application”.
3. Selladurai, M., & Priyadharshini, J. (2015). Opportunities and Challenges
of Rural Entrepreneurship in India. International Journal of Multidisciplinary
Educational Research, 4(1), 74-81.
4. Sotiris Karetsos, ConstantinaCostopoulou, Alexander Sideridis (2014)
“Developing a smart phone app for m-government in agriculture”.
5. SupornPongnumkul, PimwadeeChaovalit, NavapornSurasvadi (2015)
“Applications of Smartphone-Based Sensors in Agriculture: A Systematic
Review of Research”.
6. Trend Alcardo A. Barakabitze, Edvin J. Kitindi (2015) “New Technologies for
Disseminating and Communicating Agriculture Knowledge and Information:
Challenges for Agricultural Research Institutes in Tanzania”.
83
AGRICULTURE PRODUCTIVITY
TRENDS IN AND AROUND
COIMBATORE WITH RESPECT TO
SELECTED CROPS
Dr. P. SELVANAYAKI
Assistant Professor
R. KANYA PRIYA
Assistant Professor, Department of Mathematics
Sri Ramakrishna College of Arts and Science for Women, Coimbatore
Introduction
Agriculture forms the back bone of the Indian economy and despite concerted
industrialization in the last four decades; agriculture occupies a place of pride. Being
the largest industry in the country agriculture is the livelihood for over 70 percent of
population in the country. It contributed 57 percent of the national income in 1950-
1951 but contributes now around 32 percent of the national income. Agriculture
provides employment to around 65 percent of the total work force. Agricultural
growth has direct impact on poverty eradication. Many of the industries still depend
on the agricultural sector for raw materials as well as for market. Agriculture provides
employment to around 65 percent of the total workforce in the country. It has been
the source of supply of raw materials to our leading industries such as cotton and
jute, textile industries, sugar, vanaspathi and plantations. It is the main support for
India’s transport system. Agriculture growth is also an important factor in containing
ination, raising agricultural wages and for employment generation.
The present study examines the growth performance of area, production and
yield of selected cereal crops in the Coimbatore district .Using the data from 2006-
07 to 2015-16, the Compound Annual Growth Rate (CAGR) of area, Production
and yield for the selected cereal crops in the Coimbatore district were estimated
for each period to study the growth performance are of cultivation, Production and
yield of these crops. In Coimbatore district, the sugarcane holds good performances
in absolute terms, among the other cereal crops are concerned. But the compound
Annual growth rate reveals that the maize was found to be positive and records a
highest growth rate among other cereal crops in terms of area of cultivation, production
and yield in Coimbatore district over the study period. Despite the fact that maize
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
84
was found to acquire highest in terms of area of cultivation, production and yields
among other cereal crops, it cannot serve the purpose of livelihood for majority of
the population in the Coimbatore district. Hence, the importance had given to the
sugarcane cultivations. Besides, the study suggests that the farmers can also cultivate
Maize for the money making purpose in the Coimbatore district that suits for the
climatic conditions of Coimbatore district as well.
Materials and Methods Data base
The agriculture data has been collected from thebook entitled ‘Season and Crop
Report’ publishedby the Department of Economics and Statistics, Chennai and
Statistical Hand Book of Tamil Nadu.
The data consists of cultivated Area, Production and Yield of various crops in
various districts for the time period of Fifty years (from 1965-66 to 2015-2016).
Five mostly cultivated crops are chosen for this research.
Results and discussions
The present study examines the growth performance of area of cultivation, production
and yield of selected cereal crops in the Coimbatore district. Table 1 reports the total
area under cultivation of cereal crops for the period of 2006-07 to 2015-16. It reveals
that 415103 hectares of land was under Cholam in 2014-2015 followed by 391201
hectares under sugarcane, 118699 under Ragi 380429 under Maize, 186693 under
cotton. The trend of area under hectares cultivation of Cholam is seems to be volatile
over the study period. During the last four years periods 2011 to 2015.While in case of
Cholam, the table shows the consistent trend among other crops over the study period.
Table No.1: Area under cereal crops in Coimbatore during 2006-07 to
2015-2016 [In Hectares]
Year Cholam Ragi Maize Sugarcane Cotton
2006-07 294376 95478 197782 391201 100339
2007-08 283526 93701 223428 354022 99335
2008-09 258876 90079 286639 308800 114516
2009-10 238476 82335 244159 293329 104095
2010-11 243465 75650 230489 315961 120765
2011-12 197696 82805 280629 346350 135805
2012-13 210893 70294 291052 348379 133215
2013-14 347131 118699 380429 313343 150963
2014-15 415103 104426 321952 263066 186693
2015-16 339166 89986 355064 252272 148087
AGRICULTURE PRODUCTIVITY TRENDS IN AND AROUND COIMBATORE
85
Table 2 Reports the total production of selected cereal crops in Coimbatore
district during 2000-01 to 2015-2016. Table results reveals that maize is found
have consistent positive trend over the study periods. In case of cotton and Ragi the
production trend seems to be decline. While in case of Cholam, the production seems
to be highly volatile but seem to have downtrend in the following years. Maize looks
upswing and downswings, but Sugarcane found to hold its rst place in production
as compare with other cereals. (Figure 2) also provides the similar pattern for all the
cereal crops over the study period.
Table 2: Production of cereal crops in Coimbatore during 2006-07 to
2015-2016 [In Hectares]
Year Cholam Ragi Maize Sugarcane Cotton
2006-07 293940 148148 759112 45168458 220864
2007-08 247836 175944 810057 38070965 200673
2008-09 213436 169944 1257882 32798888 18763
2009-10 221960 160939 1138126 29758209 225448
2010-11 246981 171096 1027536 34251796 247930
2011-12 252522 224862 1695467 38974842 381769
2012-13 174966 138011 946363 34014097 255470
2013-14 513313 362343 2245216 32454135 416560
2014-15 868940 349628 2647751 28092784 598939
2015-16 439619 282054 2532330 25508824 326659
Figure 2: Trend of Production of cereal crops in Coimbatore during 2006-07
to 2015-2016[In Hectares]
Table 3 Reports the yield of selected cereal crops in Coimbatore district during
2000-01 to 2015-2016. It reveals that all the selected cereal crops of Coimbatore
district are found to follow the similar trend over the study periods. But yield of
Maize looks to be solid in terms of yield among the others. (Figure 3) was provided
for clarity and clear indication over the study period and it reveals the similar pattern.
Table 3: Yield of cereal crops in Coimbatore during 2000-01to 2015-
2016 [In Hectares]
Year Cholam Ragi Maize Sugarcane Cotton
2006-07 999 1552 3838 115 37
2007-08 874 1878 3626 108 34
2008-09 824 1887 4388 106 27
2009-10 931 1955 4661 101 36
2010-11 1014 2262 4458 108 34
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
86
2011-12 1277 2716 6042 109 48
2012-13 830 1963 3252 98 32
2013-14 1479 3053 5902 104 46
2014-15 2093 3348 8224 107 54
2015-16 1301 3132 7132 101 37
Most importantly Table 4 depicts the Compound Annual Growth Rate (CAGR)
of Area, Yield and Production of selected Cereal crops in Coimbatore District for
the years 2008-09 to 2015-16. Table results shows that, among cereal crops, Maize
have recorded the positive and highest growth rate of 12.34 % per annum, which was
evidently contributed by the high protability from Maize in the Coimbatore district.
Table 4: Compound Growth Rates of Area, Yield and Production of
selected Major cereal crops in Coimbatore district (2006-07 to 2015-
16) in percentage
Crops Area Production Yield
Cholam 0.86% 6.17% 4.22%
Ragi -0.02% 5.66% 4.86%
Maize 3.13% 15.90% 12.34%
Sugarcane -1.28% -1.33% -0.15%
Cotton 1.73% 21.94% 2.84%
It was found to be statistically signicant at one percent level. Other selected
cereal crops recorded decline in area as evident from negative rate of growth per
annum. The largest decline in area has been recorded by sugarcane at the rate of
-1.28% per annum followed by Ragi. In the case of yield selected Cereal crops, the
table result reveal that sugarcane recorded the negative growth rates per annum and
found to be statistically signicant. However, in the case of growth performance of
production, still sugarcane recorded negative production rates per annum .However,
in the case of growth performance of production, Maize has recorded the positive
and highest growth rate of 15.90% per annum which was evidently contributed by
the high protability from Maize in the Coimbatore district. The largest decline in
production has been recorded by Sugarcane at the rate of -0.15% per annum followed
by Ragi, Cholam, Cotton. The state government has taken several eorts during the
study period in order to increase the yield and production in the case of the major
cereal crops by mechanization of production by wide utilization of farm machinery
in agriculture at subsidized prices and granted loans investment in agriculture
infrastructure, supplying inputs such as fertilizers, pesticides and seed and pricing
policy for several main crops. But the analysis of our study for the Coimbatore District
shows that the maize has recorded the positive and highest growth rate per annum in
terms of area and Production.
AGRICULTURE PRODUCTIVITY TRENDS IN AND AROUND COIMBATORE
87
Interpretation 1
The above table shows about the future trend prediction for production of Cholam
from the nancial year 2018-2051. Based on the past data it was found out that the
production rate can drop down from 21669.29 tonnes (2018) to -250764.43 tonnes
in the year 2051. Based on the prediction the productivity may go worse to negative
from the year 2030.
Interpretation 2
The above table shows about the future trend prediction for total yield of Cholam
from the nancial year 2018-2051. Based on the past data it was found out that the
yield can increase 1119 kg/ha (2018) to 1416.07 kg/ha (2051) which shows a good
sign towards increasing the productivity in future.
Interpretation 1
The above table shows about the future trend prediction for production of Ragi from
the nancial year 2018-2051 in Coimbatore. Based on the past data it was found out
that the production rate can drop down from 192023.82 tonnes (2018) to 70434.36
tonnes in the year 2051.
Interpretation 2
The above table shows about the future trend prediction for total yield of Ragi from
the nancial year 2018-2051. Based on the past data it was found out that the yield
can increase 2438.14 kg/ha (2018) to 3572.73 kg/ha (2051) which shows a good sign
towards increasing the productivity of Ragi in Coimbatore district in future period
of time.
Interpretation 1
The above table shows about the future trend prediction for production of Maize
from the nancial year 2018-2051. Based on the past data it was found out that the
production rate can increase from 1146541.67 tonnes (2018) to 2346612.08 tonnes
in the year 2051.
Interpretation 2
The above table shows about the future trend prediction for total yield of Maize from
the nancial year 2018-2051. Based on the past data it was found out that the yield
can increase 4261.01 kg/ha (2018) to 7452.20 kg/ha (2051) which shows a good sign
towards increasing the productivity in future in Coimbatore district.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
88
Interpretation 1
The above table shows about the future trend prediction for production of Sugarcane
from the nancial year 2018-2051. Based on the past data it was found out that the
production rate can increase from 27991382.29 tonnes (2018) to 55356191.70 tonnes
in the year 2051 with is a good sign for the commodity.
Interpretation 2
The above table shows about the future trend prediction for total yield of Sugarcane
from the nancial year 2018-2051. Based on the past data it was found out that the
yield can decrease 2298.71 kg/ha (2018) to -5625.58 kg/ha (2051). Based on the
prediction the yeild may go worse to negative from the nancial year 2030.
Interpretation 1
The above table shows about the future trend prediction for production of Cotton
from the nancial year 2018-2051. Based on the past data it was found out that the
production rate can decrease from 282365.91tonnes (2018) to 199783.44tonnes in
the year 2051 with is not a good sign for the commodity.
Interpretation 2
The above table shows about the future trend prediction for total yield of Cotton from
the nancial year 2018-2051. Based on the past data it was found out that the yield
can decrease 282365.91kg/ha (2018) to 199783.44kg/ha (2051).
Instability index based on CAGR
CHOLAM
Year Area Production Yield
Decade 1 1966-76 0.45% 2.41% -0.01%
Decade 2 1977-86 -0.38% 1.06% 1.24%
Decade 3 1987-96 -3.11% -3.84% -0.77%
Decade 4 1995-07 -0.84% -1.59% -0.67%
Decade 5 2008-16 0.86% 6.17% 4.22%
Based on the data the percentage of growth rate towards area of cultivation
was positive in the rst decade and got decreased in the next 3 decades respectively
-0.38%, -3.11% and -0.84% and got increased in the last decade by 0.86%.
The production rate got decreased from rst decade to 4th decade from 2.41%
to -0.67% and got increased to 6.17% in the last decade which is a good sign for the
commodity in near future.
AGRICULTURE PRODUCTIVITY TRENDS IN AND AROUND COIMBATORE
89
The yield towards area cultivated got decreased from -0.01% to –0.67% from
rst decade to fourth decade and it got increased to 4.22% in the last decade.
RAGI
Year Area Production Yield
Decade 1 1966-76 -0.11% 2.72% 2.85%
Decade 2 1977-86 -2.30% -1.37% 0.63%
Decade 3 1987-96 -2.29% -1.34% 0.91%
Decade 4 1995-07 -0.89% -2.07% -1.37%
Decade 5 2008-16 -0.02% 5.66% 4.86%
Based on the data the percentage of growth rate towards area of cultivation
was negative for the ve decades from -0.11% to-0.02% but the productivity got
increased in the last decade when compared to other decades.
The production rate got decreased from rst decade to 4th decade from 2.72%
to -2.07% and got increased to 5.66% in the last decade which is a good sign for the
commodity in near future.
The yield towards area cultivated got decreased from 2.85% to -1.37% from rst
decade to fourth decade and it got increased to 4.86% in the last decade.
Maize
Year Area Production Yield
Decade 1 1966-76 10.32% 11.45 0.58%
Decade 2 1977-86 -1.98% 1.12% 3.69%
Decade 3 1987-96 6.78% 5.48% -0.61%
Decade 4 1995-07 8.17% 6.68% -1.38%
Decade 5 2008-16 3.13% 15.90% 12.34%
Based on the data the percentage of growth rate towards area of cultivation was
positive in the rst decade at 10.32% and got decreased in the second decade to
-1.98% and got increased from decade 3 from 6.78% to 8.17% till fourth decade. But
the area of production got decreased to 3.13% in the last decades.
The production rate of Maize got decreased from rst decade to 4th decade from
11.45% to 6.68% and there was a sudden hike in the last decade to 15.90% which is
a good sign for the commodity in near future.
The yield towards area cultivated got increased from 0.58% to -1.38% from rst
decade to fourth decade and it suddenly got increased to 12.34% in the last decade.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
90
SUGARCANE
Area Production Yield
Decade 1 1966-76 1.89% 2.33 0.45%
Decade 2 1977-86 2.20% 2.74% 0.44%
Decade 3 1987-96 2.83% 2.55% -0.27%
Decade 4 1995-07 0.64% 20.36% -9.18%
Decade 5 2008-16 -1.28% -1.33% -0.15%
Based on the data the percentage of growth rate towards area of cultivation of
sugarcane was positive from the rst decade to third decade from 1.89% to 2.83%
and got reduced to 1.28% in the last decade.
The production rate of Sugarcane got increased from rst decade to 4th decade
from 2.33% to 20.36% and there was a sudden drop in the last decade to -1.33%
which is not a good sign for the commodity in near future.
The yield towards area cultivated got decreased from 0.45% to -0.15% from rst
decade to last decade.
COTTON
Area Production Yield
Decade 1 1966-76 -2.04% -0.34 0.73%
Decade 2 1977-86 1.43% 4.88% 2.71%
Decade 3 1987-96 0.44% -0.92% -8.28%
Decade 4 1995-07 -3.37% -1.78% 1.15%
Decade 5 2008-16 1.73% 21.94% 2.84%
Based on the data the percentage of growth rate towards area of cultivation of
cotton was negative in the rst decade and got increased to 1.73% in the last decade.
The production rate of cotton got increased from rst decade to 5th decade from
-0.34% to 21.94%.
The yield towards area cultivated for cotton got increased from 0.73% to 2.84%
in the last ve decades.
Comparison between area of production, total production and yield of
selected crops using multiple regressions
AGRICULTURE PRODUCTIVITY TRENDS IN AND AROUND COIMBATORE
91
COMPARISON BETWEEN AREA OF PRODUCTION AND TOTAL
PRODUCTION AND YEILD OF PRODUCTION FOR CHOLAM
Total production
of cholam (in
tonnes)
Percentage of
relationship
Yield of
cholam
(kg/ha)
Percentage of
relationship
Area of cultivating
cholam (in ha)
0.592 59.2% 0.060 6.0%
Interpretation
The above table depicts that there is a moderate correlation between the area of
cultivating cholam and total production of Cholam in Coimbatore region (0.592) and
there is a low correlation between area of cultivating Cholam and Yield of Cholam
(0.060).
COMPARISON BETWEEN AREA OF PRODUCTION AND TOTAL
PRODUCTION AND YEILD OF PRODUCTION FOR RAGI
Total production
of Ragi
(in tonnes)
Percentage of
relationship
Yield of
Ragi (kg/
ha)
Percentage of
relationship
Area of cultivating
Ragi (in ha)
0.471 47.1% 0.473 47.3%
Interpretation
The above table depicts that there is a moderate correlation between the area of
cultivating Ragi and total production of Cholam (0.471) and area of cultivating
Cholam in Coimbatore region (0.473).
COMPARISON BETWEEN AREA OF PRODUCTION AND TOTAL
PRODUCTION AND YEILD OF PRODUCTION FOR MAIZE
Total
production
of Maize (in
tonnes)
Percentage of
relationship
Yield of
Maize (kg/
ha)
Percentage of
relationship
Area of cultivating
Maize (in ha)
0.829 82.9% 0.757 75.7%
Interpretation
The above table depicts that high correlation exists between Area of cultivating Maize
and Total production of Maize (82.9%) and Yield of Ragi (0.757).
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
92
COMPARISON BETWEEN AREA OF PRODUCTION AND TOTAL
PRODUCTION AND YEILD OF PRODUCTION FOR SUGARCANE
Total production
of Sugarcane (in
tonnes)
Percentage of
relationship
Yield of
Sugarcane
(kg/ha)
Percentage of
relationship
Area of
cultivating
Sugarcane
(in ha)
0.432 43.2% 0.211 21.1%
Interpretation
The above table depicts that there is a moderate correlation between the area of
cultivating sugarcane and total production of sugarcane (0.432) and low relation
exists between area of cultivating sugarcane and Yield of Sugarcane in Coimbatore
region (0.211).
COMPARISON BETWEEN AREA OF PRODUCTION AND TOTAL
PRODUCTION AND YEILD OF PRODUCTION FOR COTTON
Total
production of
Cotton
(in tonnes)
Percentage of
relationship
Yield of
Cottton
(kg/ha)
Percentage of
relationship
Area of
cultivating
Cotton (in ha)
0.431 43.1% 0.361 36.1%
Interpretation
The above table depicts that there is a moderate correlation between the area of
cultivating cotton and total production of cotton (0.431) and moderate relation exists
between area of cultivating cotton and Yield of cotton in Coimbatore region (0.361).
It was found to be statistically signicant at one percent level. Other selected
cereal crops recorded decline in area as evident from negative rate of growth per
annum. The largest decline in area has been recorded by sugarcane at the rate of
-1.28% per annum followed by Ragi. In the case of yield selected Cereal crops, the
table result reveal that sugarcane recorded the negative growth rates per annum and
found to be statistically signicant. However, in the case of growth performance of
production, still sugarcane recorded negative production rates per annum .However,
in the case of growth performance of production, Maize has recorded the positive
and highest growth rate of 15.90% per annum which was evidently contributed by
the high protability from Maize in the Coimbatore district. The largest decline in
production has been recorded by Sugarcane at the rate of -0.15% per annum followed
by Ragi, Cholam, Cotton. The state government has taken several eorts during the
AGRICULTURE PRODUCTIVITY TRENDS IN AND AROUND COIMBATORE
93
study period in order to increase the yield and production in the case of the major
cereal crops by mechanization of production by wide utilization of farm machinery
in agriculture at subsidized prices and granted loans investment in agriculture
infrastructure, supplying inputs such as fertilizers, pesticides and seed and pricing
policy for several main crops. But the analysis of our study for the Coimbatore District
shows that the maize has recorded the positive and highest growth rate per annum in
terms of area and Production.
Conclusion
The present study examines the growth performance of area, production and yield
of selected cereal crops in the Coimbatore district .Using the data from 2006-07 to
2015-16, the Compound Annual Growth Rate (CAGR) of area, Production and yield
for the selected cereal crops. The largest in the Coimbatore district were estimated
for each period to study the growth performance of are of cultivation, Production and
yield of these crops. In Coimbatore district, the sugarcane holds good performances
in absolute terms, among the other cereal crops are concerned. But the compound
Annual growth rate reveals that the maize was found to be positive and records a
highest growth rate among other cereal crops in terms of area of cultivation, production
and yield in Coimbatore district over the study period. Despite the fact that maize
was found to acquire highest in terms of area of cultivation, production and yields
among other cereal crops, it cannot serve the purpose of livelihood for majority of
the population in the Coimbatore district. Hence, the importance had given to the
sugarcane cultivations. Besides, the study suggests that the farmers can also cultivate
Maize for the money making purpose in the Coimbatore district that suits for the
climatic conditions of Coimbatore district as well.
References
1. Saravanan, P. (2005), “Growth Performance of Agriculture in Agro-Climatic
Zones of Tamil Nadu”, Agricultural Situation in India, Vol. LXI, No. 10, pp:
679- 686
2. Dr. A. Saravanadurai, M. Kalaivani A Descriptive Progress Of Selected Cereal
Crops In Salem District” Journal Of Pharmaceutical And Biomedical Sciences,
Journal Of Pharmaceutical And Biomedical Sciences, 2010, 2 (05)
3. Singh, I. J. and K. N. Rai (1997), “Regional Variations in agricultural
performance in India”, Indian Journal of Agricultural Economics, Vol. 52,
No.3, pp.374-377
4. Shadmehri, M., T., A., (2008), “Estimating Growth Rates and Decomposition
Analysis of Agricultural Production in Iran (1960-2000)”, Trends in Agriculture
Economics, , Vol.1, No.1, pp.14-26
5. DR. S. PradeepKumar“A Study On Growth And Instability In Maize Production
In Tamil Nadu”, International Journal of Research in Commerce, Economics &
Management, Volume No. 6 (2016), Issue No. 06 (June)
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
94
6. Dandekar (1980), “Introduction, seminar on data and methodology for the study
of growth rates in agriculture”, Indian Journal of Agricultural Economics, Vol.
35, No. 2, pp.1-2.
7. Deosthali, V. and M. N. Chandrahekar (2004), “Rice: Region-wise growth trends
in Maharashtra”, Economic and Political Weekly, Vol. 39, No.3, pp.240-242.
8. Minhas, B. S., (1996), “Rapporteur’s report on measurement of agricultural
growth”, Indian Journal of Agricultural Economics, Vol. 21, No.4, pp.165-182.
9. Shadmehri, M., T., A., (2008), “Estimating Growth Rates and Decomposition
Analysis of Agricultural Production in Iran (1960-2000)”, Trends in Agriculture
Economics, Vol.1, No.1, pp.14-26.
10. Singh, I. J. and K. N. Rai (1997), “Regional Variations in agricultural
performance in India”, Indian Journal of Agricultural Economics, Vol. 52,
No.3, pp.374-377.
11. Hasan M. N., M. A. MonayemMiah, M. S. Islam, Q. M. Alam and M. I. Hossain,
(2008), Change and Instability in area and production of wheat and maize in
Bangladesh, Bangladesh Journal of Agricultural Research, Vol. 33, No. 3, pp :
409-417.
12. Nath K. P. and R. T. Shand, (2010), Sources of output growth in Indian
Agriculture, Indian Journal of Agricultural Economics, Vol. 52, No. 4, pp:
693-706.
13. Parikh, Kirit (1993), Economic reforms and Food and Agriculture Policy, Indira
Gandhi Institute of Development Research, Mumbai.
14. Pillai, Renuka, (2001), An Analysis of paddy productivity growth in West
Bengal and Orissa, Indian Journal of Agricultural Economics, Vol. 56, No. 4,
pp: 613-629.
15. Sarkar, Bebnarayan and SanjuktaChakraborty, (2002), Growth crisis of
Foodgrains in West Bengal, Agricultural Situation in India, Vol. LVIII, No.11,
pp: 511-516.
95
EFFECTIVE WATER RESOURCE
PLANNING AND MANAGEMENT FOR
SUSTAINABLE AGRICULTURE
Dr. G. R. GAYATHIRI
Assistant Professor, SASTRA Deemed to be University, SRC, Kumbakonam.
Ms. RAKSHITHA VASIREDDY
Student, II BBA, SASTRA Deemed to be University, SRC, Kumbakonam.
ABSTRACT
Water is the most imperative single requirement for the growth of the plant. In India
water is the basic contributor for agriculture and for other needs and it is also a
crucial resource for sustainable progress of farming sector. From the past 30 years
water resources like ponds, wells and rivers are not maintained properly which
has got down its capacity. More than 40% of swampy ground being destroyed has
aected the improvement of land water level and protection of the environment.
Water management in India comprises irrigation or drainage or both. Designing and
using of sustainable irrigation plan is main concern in agriculture. Hence, this paper
focuses on eective water resource planning and management systems for sustainable
agriculture in India. Researchers used secondary data for analysis purposes. The
nding of the study is, water through harvesting system by storing rainwater for
direct use and relling the ground water by constructing infrastructures at rural areas
helps to protect the water resources. Creation of awareness about water planning and
management to the farmers is also essential.
Keywords: Water Resource, Sustainable Agriculture, Planning, Water Management
in India.
Introduction
Water is the most important single requirement for the growth of the plant, Crops can
be raised successfully only if water is available in adequate quantity either from rain
or surface ow or below ground. As per the report on the earliest research in 1910 on
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
96
history of water resource studies many investigations were administered in the years
and in present times in the areas of water research eld, water resource science has
become the most important. Rainfall in most parts of the country is conned mainly
to the four rainy months of June to September. During the remaining months the
water requirements have to meet from ground or surface water resources. The need
of applying irrigation for raising crops during non-rainy periods when rains failed
was felt even in the distant past. Water management in India comprises irrigation or
drainage or both, it means that under water management, practices and problems of
proper irrigation and proper drainage are undertaken.In the global environment, Water
resource plays a key role as it showed great progress in monitoring, water treatment
techniques and management. Many bibliometric studies have been carried out in
areas like oncology, radiology, nuclear medicine, tropical medicine, virology, and
dentistry, ecology, microbiology, psychology, biology, etc. To see to that the capital
stock is not degraded we need to develop Water policy reforms as a cohesive part of
a broader reform framework enclosing institutional changes to the way water services
are administered dening water property rights and entitlements; recovering costs
for the delivery of water to agriculture; and providing a solid base for the nancing
of water delivery and should be done on a long term basis as an essential part of the
government as climatic changes has a huge impact on agriculture which are taking
the industry into strange territory in terms of the availability of water to the farmers.
Means of Irrigation
It should be clearly stated that the system of irrigation developed in dierent parts
of the country is governed by local, metrological, geological, and other physical
conditions. Therefore, there cannot be any uniformity in the system of irrigation in
dierent tracts. Alluvial tracts in the Gangetic and coastal plans are especially suited
for canals and wells.
Canals are the chief source of irrigation and irrigate about 40% of the total
irrigated area in 1950-51. They are mostly in northern India where large and potential
rivers like Ganges, Yamuna, and Sutlej ow and the soil is soft and plain so that
construction of canals is easy and emotional. Canal cost huge sums of money which
are beyond the resources of individuals. These are mainly constructed by the state
to whom they are the source of income. Some canals are owned privately also, they
irrigate about 2.4% of the total irrigated area. Open wells have been in use in the
country for irrigation from time immemorial. Their number increased as the cultivated
area increased. These are generally constructed in those areas where soil is soft and
sub-soil is not deep. By far the larger number of irrigation tube wells in the country
are privately owned tube wells. At the end of March, 1969, while there were only
15000 State tube wells, the private ones numbered 2, 46, 000 , though of smaller size.
It has also been observed that the growth of private tube wells has been noteworthy
from Third Plan onwards. Private tube wells provide these. Private tube wells have
certain advantages over State tube wells. According to available estimates, at the
commencement of the planning area, there were about 5 lakh tanks in the country ,
of which about 46, 800 had a command area less than 40 ha each. These tanks are
mostly located in Andhra Pradesh, Karnataka, Orissa, Tamil Nadu and West Bengal.
EFFECTIVE WATER RESOURCE PLANNING AND MANAGEMENT
97
In 1950-51, the net area irrigated from tanks as per records, was 3.6 Mha and this
increased to about 4.5 Mha by 1956. This has remained more or less steady since
then. At present about 9% of the total irrigation is by tanks.
Percentage Share of Different Sources of Irrigation
Sources 1950-51 1996-97 2020-21
Canals 39.8 31.7 25
Tanks 17.3 5.9 3
Wells and tube wells 28.7 55.9 60
Others 14.2 6.5 12
Total 100.00 100.00 100.00
Area Irrigated by Different Sources(Area in Million Hectares)
Source Irrigation 1950-51 1992-93 2016-17
Canals 8.3 17.4 33.4
Tanks 3.6 3.3 3
Wells and tube wells 6.0 30.8 28
Other sources 3.0 3.6 4.2
Total 20.9 55.1 68.6
In India, irrigation works are classied into major, medium and minor irrigation
works. Since 1951, the “major” irrigation projects have been dened as those
costing more than Rs. Five crore, medium projects are those costing between Rs. 10
lakhs and Rs. 5 crores, minor irrigation works at those costing less than Rs. 10 lakhs
each. From 1978-79 the Planning Commission has a new classication of irrigation
Schemes which is as follows:
a) Major Irrigation Schemes: Projects having Culturable Command Area (CCA) of
more than 10, 000 ha each classied as major projects.
b) Medium Schemes: Those projects which are having Culturable Command Area
(CCA) between 2000 ha. and 10, 000 ha. are classied as medium schemes.
c) Minor Schemes: Those projects which are having Culturable Command Area
(CCA) less than 2000 ha. are categorized as minor irrigation schemes.
Choice of Water Resource Management for Sustainable
Agriculture
Water Management in the Farm
The objective of this technique is to maximize crop and water productivity by ensuring
ecient conveyance, application and use of irrigation water promoting improved
water management interventions through user participation.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
98
Scheduling of Irrigation
It enables the irrigator to apply the exact amount of water to achieve the goal.
This increases irrigation eciency. A critical element is accurate measurement of
the volume of water applied or the depth of application. A farmer cannot manage
water to maximum eciency without knowing how much was applied. Uniform
water distribution across the eld is important to achieve the maximum benets
from irrigation scheduling/management. Accurate water application prevents over
or under irrigation
Methods of Water Application
Surface (gravity-driven surface irrigation), sprinkler, drip/micro, and subsurface are
types of irrigation methods that are used by growers to irrigate various crops. Each
system has its advantages and disadvantages. But with good design, they can be very
successful for appropriate cases
Water Management in Agriculture (WMA)
It uses water in a way that provides crops and animals the amount of water they need,
enhances productivity, and conserves natural resources for the benet of downstream
users and ecosystem services.
Waste Water use in Agriculture
Judicious use of wastewater to grow crops will help solve water scarcity in the
agriculture sector. At a time when we need to produce more food to feed an ever-
increasing population, wastewater can be used by farmers either directly through
irrigation, and indirectly by recharging aquifers.Wastewater use is a growing practice
worldwide. As freshwater sources become scarcer, wastewater use has become an
attractive option for conserving and expanding available water supplies. About
10% of total irrigated lands in developing countries use wastewater for irrigation.
In India, only 24% of wastewater from households and industry is treated. Only
74% of the total wastewater generated is collected. Wastewater use can have many
types of applications, including irrigation of agricultural land, aquaculture, landscape
irrigation, urban and industrial uses, recreational and environmental uses, and articial
groundwater recharge. Estimates on wastewater use worldwide indicate that about 20
million hectares or agricultural land is irrigated. Especially in lower income countries
and in arid and semi-arid high-income countries, wastewater irrigation is the most
prominent and also the most rapidly expanding wastewater use.
Articial Groundwater Recharge
Articial recharge is important for groundwater management as it provides storage
space free of cost, avoids evaporation losses and allows the use of stored water in
dry seasons. Several methods of groundwater recharge like spreading, pit, induced
recharge and well method are practiced.
EFFECTIVE WATER RESOURCE PLANNING AND MANAGEMENT
99
The indiscriminate use of ground water has been rampant because of its local
availability and advent of deep tube wells. The special and temporal variability of
rainfall and the quantum of natural recharge are inadequate to meet the increasing
demand of ground water resources. Augmentation of groundwater resources through
articial recharge of aquifers, which supplements the natural process of recharging,
has become relevant in India. Articial recharging may be carried out by direct and
indirect methods and/or combining these methods. In direct methods water is made
percolated to the aquifer directly from source whereas in indirect methods transfer
surface water which is induced as a consequence of human activity and is eected by
locating the groundwater abstraction wells near inuent streams. Indirect recharge can
also be from seepage of stream or canal or lakebeds and return ow from irrigation.
Integrated Water Resources Planning and Management (IWRM)
IWRM is dened by the Global Water Partnership (GWP-2000) as ‘A process which
promotes the coordinated development and the management of water, land and related
resources, in order to maximize the resultant economic and social welfare in an
equitable manner without compromising the sustainability of vital ecosystems’. Thus
water security at basin level is the main issue in IWRM. A well-developed, well-
tested, scientically robust, socially acceptable and economically viable approach
to implement IWRM at the river basin level are still not widely available. This is
the basic for sustainable water management. Water footprint is the total volume of
direct and indirect freshwater consumption of all processes involved in formation of
a product/ produce. The water footprint of a product isexpressed in volume of water
per unit of product. It has three components i.e. Blue Water Footprint, Green Water
Footprint and Grey Water Footprint. The blue water footprint refers to consumption
of surface and ground water while the green water footprint refers to consumption
of rainwater stored in the soil as soil moisture. Grey water footprint is the volume of
freshwater required to assimilate the pollutant load based on existing ambient water
quality standards.
Present Position and Water Shed Development
At present, of the 142.6 million hectares of net cultivated, 57 million hectares is
irrigated. It means about 40% of the cultivated area is irrigated. The remainder 8.6
million hectares (60%) is rain fed. It means about 60% of the cultivated area is
dependent on the rains for irrigation. Rain fed areas comprise primarily of the arid
and semiarid regions and drought prone areas. Going by the past trend, the average
expansion of irrigation is around four million hectares every ve years. Extrapolating
this trend, it is projected that another 20 million additional hectares may be brought
under irrigation in the next 25 years. This will still leave 65 million hectares nearly
half of the cultivated area under rain fed conditions. However, after 25 years, 50%
of the cultivated area of India may become irrigated and remaining 50% may remain
under rain fed conditions. The Green Revolution, which remained conned to the
irrigated areas has started showing signs of fatigue in the irrigated areas. Therefore,
attention is increasingly being focused on to rain fed areas to provide impetus for future
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
100
agricultural growth. The Ministry of agriculture has accorded very high priority to the
holistic and sustainable development of rain fed area through integrated watershed
management approach.
Conclusion
Water resources being irregularly distributed are under oppression reason being
population change and increased demand. To match the demand and supply dierent
options for improvement expand the boundaries of the water resource in a conventional
sense. It is necessary that we control the use of underground water that will not be
recharged. Practices like collecting rainwater are being puried by newer methods like
articial recharge, desalination and re-use. The challenge faced by water management
encircles matters regarding water and agricultural eld and the techniques to tackle
this issues must be multi-dimensional since this being a social issues than a technical
one. The use of Integrated Water Resource Management approach along with the
advancement of rainwater harvesting, inter-basin water transfer, water use and
conveyance eciency, waste water use is the action that can be advocated.
References
1. Aggarwal, R. 2007 Scope of Rainwater harvesting through Rooftop in Punjab,
“Environmental and Livelihood Security Through Resource Management in
Northern India”, Indian association of Soil and Water Conservationists, A report
to the Government of Punjab, Oct, 2012, pp 123-127.
2. Asano, T., F.L. Burton, H. Leverenz, R. Tsuchihashi, and G. Tchobanoglous.
2007. WaterReuse: Issues, Technologies, and Applications. New York, NY:
McGraw Hill.
3. Jiménez, B., & Asano, T. (2008). Water reuse: An international survey of current
practice, issues and needs. London: IWA Publishing.
4. Leverenz, H. L., Tchobanoglous, G., & Asano, T. (2011). Direct potable reuse: a
future imperative. Journal of Water Reuse and Desalination, 1(1), 2-10.
5. Ocer, P. (2016). Food and agriculture organization of the United Nations. FAO,
Italy.
6. Paramasivan, C., & Pasupathi, R. (2017). A study on growth and performance
of Indian agro based exports. International Journal of Humanities and Social
Science Research, 3(9), 1-5.
7. Priyadharshini, J., & Muthusamy, S. (2016). Green Marketing: Solar Energy
Opportunities and Challenges in India. International Journal of Research &
Business Innovation, 4(1).
8. Raj, A., Jhariya, M. K., Yadav, D. K., Banerjee, A., & Toppo, P. (2020).
Agroforestry for climate change mitigation, natural resource management, and
livelihood security. Climate Change and Agroforestry System: Adaptation and
Mitigation Strategies, 27-46.
9. Selladurai, M. (2021). Performance of Agro Based Industries in India with
Special Reference to Sugar Industry.
101
PROMOTION OF GREEN REVOLUTION
FOR THE GROWTH OF AGRICULTURAL
SECTORS: A PHILOSOPHICAL BASIS
THROUGH THE LENS OF EMMANUEL
LEVINAS
RAJEESH DEVASIA
Ph.D. Research Scholar
Dr. IMKUMNARO
Department, Head of Philosophy,
St. Joseph University, Nagaland
ABSTRACT
Emmanuel Levinas (1906-1995) is an eminent phenomenologist philosopher who
is a Jew by birth, had early days in Germany and became a scholar in France. The
main concern of Levinas is the consideration of Ethics as the rst philosophy. Ethics
is taken as relationship between beings where the importance is accorded to human
responsibility towards the other person/things. The relationship with the other person
cannot be reduced to comprehension. It would limit the other. The face of the other
is the condition of possibility for ethics. Here the face-to-face relation enhances the
relationship. This relationship does not limit between the human beings, but is to
anything that is other (Nature). So There are two things emerge from these, rstly, can
we be sure of the other in nature and secondly, the need to treat the other in the nature.
So, there is a plausible need for response towards the needs of the environment.
Objectives of the Paper are to establish the possibility of the Green Revolution
in agriculture as a philosophical basis and to state that in response to Levinasian
concept of the other, we need to promote agrarian sector.
The author tries to base on Levinasian concept for the care of the environment
especially the agricultural sector which is the backbone of the Green Revolution. This
paper focuses on the importance of environmental intervention to promote, sustain
and preserve the nature through the ideals given by Levinas.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
102
Introduction
The survival of the planet earth is impeccable through the emphasis in green
revolution. There is adverse impact on earth caused explicitly through the human
intervention. The earth is seen as the source of livelihood, shelter and a safe cradle
for human survival. However, ingenious habit of utilizing the earth’s resources has
led to antagonistic sway on earth itself. Green revolution is a path that nurtures the
earth for its longitivity and survival. Human beings depend on earth on everything for
their survival. The conducive behaviour enables the earth to serve better the human
beings themselves. The stress on the growth of agricultural segments is part of green
revolution which is benecial for both the earth and the human beings. The care for
the earth by leading a greater love for it is accentuated by philosopher Emmanuel
Levinas (1906-1995). He orders everyone to have a respected care for the ‘face of the
other’. He is an eminent phenomenologist philosopher who is a Jew by birth, had early
days in Germany and became a scholar in France. The main concern of Levinas is the
consideration of Ethics as the rst philosophy. Ethics is taken as relationship between
beings where the importance is accorded to human responsibility towards the other.
Levinas’ Theme of Environment
Levinas is known for his work in the area of centrality of human beings in ethical
projects. The works of Levinas cannot be restricted to human beings but towards
human responsibility to deal with that are in nature. Though is philosophy begins with
the attention to the human other who is always faced with the other. (The other can be
human other or non-human animal or non-human non-animal other). To understand
that there is a possibility of the other is to establish that they have an existence by
themselves. The presence of the other is a sublime reality which cannot be ignored. The
other by its face calls for attention. Human beings need to act positively towards the
other that/which calls for attention. A responsible human being deals resonantly with
the cry of the other. It is in this sense, that Levinasian philosophy gets environmental
taste. Human beings are obliged to respond to the other – human beings, animals,
plants, or anything that exists.
The Process through the ‘il y a’ in the Environmental Concerns
Levinas goes to the root of the project of study when he proposes that the other is
a presence that cannot be denied or doubted. He made a clear distinction between
an “existent” and “bare existence”. All things have their own existence or the ‘il y
a’. It is clear that all beings exist in their own space and time without someone’s
perception. Levinas goes on to say that there are beings in their bare existence.
This bare existence he terms as ‘il y a’. He delineates the ‘il y a’ as “impersonal,
anonymous, yet inextinguishable ‘consummation’ of being, which murmurs in the
depths of nothingness itself”. All the beings in the universe have their reality without
any human interventions of them. It entails then that there is the possibility for the
other. Hence, the other is a denite ‘be’ in the world.
PROMOTION OF GREEN REVOLUTION FOR THE GROWTH OF AGRICULTURAL SECTORS
103
Existence and Existents as Real Presence of things in the
Environment
Levinas developed the notion of ‘il y a’ from his earliest writings where he clearly
brought out a distinction between ‘existent’ and ‘bare existence’. The ‘bare existence’
is devoid of accidents or qualities of things. The ‘bare existence’ is like Aristotelian
substance which Levinas claims as “the absence of everything returns as a presence,
as the place where the bottom has dropped out of everything, an atmospheric density,
a plenitude of the void, or the murmur of silence”. The existence of things in the
environment is a real presence which requires no human intervention to conrm it.
Levinas gives the dierence between the existent and the ‘il y a’. He holds
that the existent as an event or an experience, is a ‘rip in il y a’, an interruption
of its anonymity. ‘An existent is an event, which shows up most primordially and
immediately as a position of a location, here and now, a place’. The existent as the
eruption of anonymous being shows up concretely in its body. This body requires
location and is also an irruption in the ‘il y a’- it creates a ‘tear’ in the anonymity of
the ‘il y a’. Thus the existents exist in the world with its body, occupy space. The
existent of things is seen as a localized materiality characterized as subjectivity. So
the presence of the other with qualities and accidents is a real certainty for Levinas.
Levinas thus, proposes that anything in this environment is a real possibility. The
agricultural sectors of our discussion are a possibility for Levinas. It does have a
matter for discussion and explanation.
The Treatment of the Other- The Other as the Agricultural Sector
The presence of things really exists both in its bare existence and in its qualities.
Levinas proposes that the other can be anything that exists in the universe. We can
then, introduce the agricultural sector as the other that exists. Levinas does not stop
with the existence of the other, but the presence of the other calls out to respond
positively for its nurturing. To have this feature – the presence of the other – we need
to take his idea of the ‘face’ of the other.
The ‘face’ of the other is a common phrase in Levinasian thought. By the term
‘face’ it is understood as the ‘countenance’ with physiognomy, character, facial
expression, said states, situation and the like, which causes a visible description
to something. It could also mean that which is ‘seeing’ through the behaviour or
appearance or could be said as something representing. However, for Levinas the
‘face of the other’ is not understood in terms of physical countenance or appearance,
but it is the ‘other is invisible’. It means that the face of the other is irreducible to
given data in the perceptible eye of the observer. Roger S. Gottlieb puts it this way:
“What Levinas poses as an alternative is the irreducibility or underivability
of our concern for the other. This concern does not stem from an empirically or
conceptually based sense of the “facts” or the ultimate ontological structures of the
universe.…They are neither a consequence of our knowledge of things (totality) or
of the ultimately knowable character of things themselves (essence) nor are they how
the things appear to us or exist in their truth (being)”.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
104
The ‘I’ or the ‘ego’ tries to comprehend the other to its known countenance. The
other by its visibility (or say countenance) comes across to the ‘I’ and the ‘I’ in its
return tries to incarcerate the other there in what ‘I’ see or its ‘play of words’. The
face of the other is seen in others’ vulnerability and need which calls for justice,
which represents the “trace” of the innite. Innite cannot be reduced to empirical,
tangible moments but can be understood only as a ‘trace’. So too, the face of the other
is beyond human reduction of concepts. The possibility of giving an existence -‘il y
a’ - to the other is the proper way of speaking about Levinasian ‘face’ of the other.
Levinas proposes that the ‘I’ always tend to respond to the other. It becomes
a responsibility to act towards the other. The self in its coincidence of the meeting
of the face tends towards a concrete action. However, in Levinas we nd that all is
focused on the alterity of the alter ego. The other is other than me, other than things,
and other than others but is pure alterity, a pure singularity. Levinas would also
claim that the face commands a gathering – or a proximity – we can know or have
an experience of another without discovering in him indiscernible dierence. It is
an act of recognizing in the face of the other its own unprecedented existence in the
world. And in recognizing the face of the other invites all to respond to the other,
here in our case, the agriculture.
The Obligation to the Other (Agriculture) - a Call beyond Refusal
Levinas as a philosopher of ethics places emphasis on the relationship between
persons or individuals. He alludes emphatic descriptions to the encounter with the
other persons. The specialty of the encounter is that the other impacts me more
than any outside object. The other person presents to me as an alter ego. This is
possible through my perception. I am able to comprehend another human person
similar to me, in thier actions, in thier consciousness. The other person lives in his/
her environment, their surroundings and those that help them to live prolically
wholesome. Agricultural sector is one area that the other person lives for their healthy
survival.
Levinas opines that the other individual addresses me, calls me – there is a
relational inter-subjectivity. The existence of ‘il y a’ (there is) of the other requires
no external evidences of its presence. One feels implicitly towards the other. The
presence of the other compels one to act towards it. It is an internal force or an internal
urge. It is a lurching within to respond. Levinas claims that the other individual is
present outside oneself as an individual waiting to be heard, cared and solicited for.
The obligation towards the other is a denitive call within me to positively respond in
lieu for assistance.This denitive call within me is an insatiable hunger. The hunger
for the other reects back on me. Levinas would claim that this hunger “challenges
my identity and above all, my complacency and self-assurance.” This desire for the
other when faced with the other leads into a relationship of responsibility. It is a
positive responsibility to enhance the existence of the other that is facing me. The
other can be the ultimate reality as well. It could be the agriculture which seeks our
attention. The other that faces me is an obligation for me to ‘face’ responsibly, and
contributing to its wellbeing.
PROMOTION OF GREEN REVOLUTION FOR THE GROWTH OF AGRICULTURAL SECTORS
105
The Need for Promotion of the Green Revolution in Agriculture
We need to focus more on “Green Revolution” which term was coined by William
S. Gaud of United States Agency for International Development (USAID) in 1968,
for the introduction of new technology and policies implemented in the developing
nations with aids from industrialized nations between the 1940s and the 1960s to
increase the production and yield of food crops. There is a need for paying attention in
agricultural sectors such as expansion into marginal lands, rapid rates of deforestation
and overgrazing in dry areas which in turn lead to severe adverse environmental
consequences. Land and loss of organic matter lead to land degradation and
desertication, which leads to lack of food, fuel wood, and other agricultural and
forestry products. Poverty and its related vices together with opportunities for quick
political and economic gains without having to bear associated environmental costs,
has lead to exploitation of the land base.This exploitation and the resulting degradation
of the future land base may be avoided through a combination of technological change
and public policy without serious adverse eects on short-run food supplies. New
technology facilitates higher yields on existing agricultural lands. Thus, expanding
the development and use of yield-increasing technology reduces the pressure on
new lands to meet increasing demands for food and other agricultural products.
The new challenges in the present time are, meetingthe demands of diet diversity
resulting fromrapidly rising incomes; feeding rapidlygrowing urban populations;
accessingtechnologies that are under the purview ofproprietary protection; and gearing
up forthe projected negative consequences ofclimate change. These can be dealt with
only through a proper plan and execution. Green revolution in the agricultural sector
has indeed beneted many as well as resulted in food suciency. It is like Levinasian
concern for the other. It is a positive response to the need of the hour.
Conclusion
The need for promotion of green revolution in agricultural sector is not impetuous
desire, but the need of the hour. Levinas as a philosopher emphasized the need to
respond to the other. Every human person is obligated to help the other in answering
their cry for support. As a responsible individual, every human person has to tend
towards the welfare of the other. The support of green revolution, rst of all is a reality
(ail y a) and is a positive response to the current problems of environmental concerns.
The Levinasian concept thus, remains as a base for support in the endeavours of green
revolution in the agricultural sectors.
References
1. S.Rajaram (2017) Empowering Indian Economy Through GST in India,
Economic Challenger., Issue 77., pp.46-50
2. Subbiah, Rajaram. (2020). KAAV INTERNATIONAL JOURNAL OF
ECONOMICS, COMMERCE & BUSINESS MANAGEMENT.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
106
3. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
4. C, PARAMASIVAN & Subbiah, Rajaram. (2015). An Overview of Micro
Insurance Industries in India.
5. Subbiah, Rajaram. (2020). MICRO INSURANCE -A CONCEPTUAL
ANALYSIS.
6. Priyadharshini, J., & Muthusamy, S. (2016). Service quality and passengers
satisfaction of southern railways by ServQual model. International Journal of
Trend in Research and Development, 3(6).
7. Priyadharshini, J., & Selladurai, M. (2016). A study on high speed rails in India.
Int J Trend Res Dev, 3(3).
8. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study On Satisfaction Of
Tourists Visiting Yercaud Of Salem District. Asia Pacic Journal of Research In
Business Management, 4(3), 1.
9. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
107
AWARENESS AND PERCEPTION
TOWARDS VARIOUS SCHEMES OF
NABARD AMONG RURAL FARMERS
WITH SPECIAL REFERENCE TO
MALAPPURAM DISTRICT
Dr.V.Dheenadhayalan,
Associate Professor, PG Department of Commerce,
Srisubramaniaya Swami Govt Arts College, Tiruttani
Sandeep. A
Research Scholar, Department of Commerce
Annamalai University, Annamalai Nagar
ABSTRACT
The Banyan is great, not because of its trunk, but because of its oshoots. We take
pride in our partners, because it is they who enable us to reach out to rural India. The
NABARD is oering dierent schemes for rural farmers, even though it is not yet
reached among all the farmers in India. Still most of the farmers are unaware about
the NABARD and its activities. This study reveals the awareness and perception
towards various schemes of NABARD among rural farmers in Malappuram District.
Keywords: Awareness, Perception, Nabard, Schemes
INTRODUCTION
The importance of institutional credit in boosting rural economy has been clear to the
Government of India right from its early stages of planning. Therefore, the Reserve
Bank of India (RBI) at the insistence of the Government of India, constituted a
Committee to Review the Arrangements For Institutional Credit for Agriculture
and Rural Development (CRAFICARD) to look into these very critical aspects.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
108
The Committee was formed on 30 March 1979, under the Chairmanship of Shri B.
Sivaraman, former member of Planning Commission, Government of India.
The Committee’s interim report, submitted on 28 November 1979, outlined
the need for a new organisational device for providing undivided attention, forceful
direction and pointed focus to credit related issues linked with rural development. Its
recommendation was formation of a unique development nancial institution which
would address these aspirations and formation of National Bank for Agriculture and
Rural Development (NABARD) was approved by the Parliament through Act 61 of
1981.
NABARD came into existence on 12 July 1982 by transferring the agricultural
credit functions of RBI and renance functions of the then Agricultural Renance
and Development Corporation (ARDC). It was dedicated to the service of the nation
by the late Prime Minister Smt. Indira Gandhi on 05 November 1982. Set up with an
initial capital of Rs.100 crore, its’ paid up capital stood at Rs.14, 080 crore as on 31
March 2020. Consequent to the revision in the composition of share capital between
Government of India and RBI, NABARD today is fully owned by Government of
India.
The NABARD is oering dierent schemes for rural farmers, even though it is
not yet reached among all the farmers in India. Still most of the farmers are unaware
about the NABARD and its activities. This study reveals the awareness and perception
towards various schemes of NABARD among rural farmers in Malappuram District.
STATEMENT OF THE PROBLEM
The NABARD is oering dierent schemes for rural farmers, even though it is not yet
reached among all the farmers in India. Still most of the farmers are unaware about the
NABARD and its activities. This study reveals the awareness and perception towards
various schemes of NABARD among rural farmers in Malappuram District. This
study tries to identify the awareness level of farmers about the schemes of NABARD
and also their perception towards NABARD.
OBJECTIVES
●To study the awareness level of farmers about various schemes of NABARD
●To study the perception towards NABARD
●To provide necessary suggestions
ABOUT NABARD
National Bank for Agriculture and Rural Development is an apex regulatory body for
overall regulation of regional rural banks and apex cooperative banks in India. It is
under the jurisdiction of Ministry of Finance, Government of India.
AWARENESS AND PERCEPTION TOWARDS VARIOUS SCHEMES
109
FUNCTIONS OF NABARD
When it comes to aiding rural communities nancially, NABARD plays a few distinct
roles.
They are as follows:
●The NABARD scheme aims to provide funds for India’s rural infrastructure to
enable long term irrigation practices.
●Generally oering nancial services and aid for the development and improvement
of rural India.
●Planning, implementing and managing any funding programs for farming and
agricultural activities.
●Providing all kinds of funding services for the development and growth of food
processing units and food parks in designated areas.
●Oers both long term renance and short term renance servicing to its customers.
Simultaneously, provides any direct renance services to Indian cooperative
banks.
●Oering lending services, cold chain, and storage infrastructure to rural
warehouses.
●Marketing federations can receive credit facilities from the NABARD scheme.
●Creating new policies for India’s rural nancial institutions.
VARIOUS GOVERNMENT SPONSORED SCHEMES
The Government of India encourages farmers in taking up projects in select areas by
subsidizing a portion of the total project cost. All these projects aim at enhancing capital
investment, sustained income ow and employment areas of national importance.
NABARD has been a proud channel partner of the Government in some of these
schemes shown in this section. Subsidy as and when received from the concerned
Ministry is passed onto the nancing banks.
●New Agricultural Marketing Infrastructure (AMI) sub scheme of ISAM
●Agri Clinics and Agri Business Centres Scheme (ACABC)
●National Livestock Mission - Entrepreneurship Development & Employment
Generation (NLM-EDEG)
●Dairy Entrepreneurship Development Scheme (DEDS)
●Commercial production units of organic inputs - National Project on Organic
Farming (NPOF)
●GSS – Ensuring End Use of Subsidy Released
●Interest Subvention Scheme
RESEARCH METHODOLOGY
Research methodology is a systematic approach to nding solutions under research
methods. selection of research method used in the context of research study and
explanations using a popular method in that research result are capable of evaluated.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
110
RESEARCH DESIGN
Research design states that overall strategy adopted by researcher where by overall
components of the study are set in a logical way. The research design used in this
research is “descriptive research.” This type of research is used to describe a particular
situation event or an individual. it start with past problem. This type of research is
mainly aims to acquire knowledge.
DATA ANALYSIS AND INTERPRETATION
Awareness About NABARD
45%
40%
40%
35%
30%
25%
25% 23%
20%
15%
10% 7%
5%
5%
0%
Highly Aware Aware Moderately Aware Slightly Aware Not Aware
Interpretation
Among 100 respondents, 5% are Highly aware about NABARD while 7% aware,
25% are moderately aware, 23% are slightly aware and 40% of the respondents are
not aware about NABARD.
AWARENESS AND PERCEPTION TOWARDS VARIOUS SCHEMES
111
Awareness About New Agricultural Marketing Infrastructure (AMI) Sub
Scheme
35%
33%
30%
25%
25%
22%
20%
15%
12%
10% 8%
5%
0%
Highly Aware Aware Moderately Aware Slightly Aware Not Aware
Interpretation
Among 100 respondents, only 60% of the respondents are aware about NABARD. So
the survey on awareness about various schemes are conducted among 60 respondents
who aware about NABARD. Among the 60 respondents, 8% are Highly aware
about NABARD while 12% aware, 22% are moderately aware, 25% are slightly
aware and 33% of the respondents are not aware about New Agricultural Marketing
Infrastructure (AMI) Sub Scheme.
Awareness About Agri Clinics and Agri Business Centres Scheme
(ACABC)
40%
37%
35%
30%
30%
25%
20%
15%
15% 13%
10%
5%
5%
0%
Highly Aware A ware Moderately Aware Slightly Aware Not Aware
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
112
Interpretation
Among the 60 respondents, 5% are Highly aware about NABARD while 13% aware,
15% are moderately aware, 30% are slightly aware and 37% of the respondents are
not aware about Agri Clinics and Agri Business Centres Scheme (ACABC).
Source Of Information About NABARD
70%
60%
60%
50%
40%
30%
20%
17%
12%
10%
5%
3%
3%
0%
NABARD
News paper
RRBs
Local Political
Posters
Others
Website
Leaders
Interpretation
Among the 60 respondents, 3% got information from NABARD website, 5% got
information from newspaper while 17% have information from RRBs, 60% got
information from local political leaders, 3% from posters and 12% of respondents
got information from other sources.
Difficulties To Adopt Services offered by NABARD Weighted Ranking
Of Difficulties To Adopt Modern Banking Services
Factors Rank
Lack of knowledge 1
Limited services 4
Problem of security 2
Support from banking ofcials 3
Unreliable 5
AWARENESS AND PERCEPTION TOWARDS VARIOUS SCHEMES
113
Interpretation
Among the 60 respondents, while analyzing the diculties to adopt the services
oered by NABARD, Lack of knowledge is identied as the most important diculty
by the rural farmers as they rank it as “1” and Problem of security is ranked as “2”,
Support from banking ocials ranked as “3” , limited services ranked as “4” and
unreliable is ranked as “5”.
FINDINGS
●Among 100 respondents, only 60% are aware about NABARD.
●Among 60 respondents, who aware about NABARD, 67% are aware about New
Agricultural Marketing Infrastructure (AMI) Sub Scheme.
●Among 60 respondents, who aware about NABARD, 63% are aware about Agri
Clinics and Agri Business Centres Scheme (ACABC).
●Among 60 respondents, who aware about NABARD, 60% got information from
local political leaders.
●Among the 60 respondents, while analyzing the diculties to adopt the services
oered by NABARD, Lack of knowledge is identied as the most important
diculty by the rural farmers.
SUGGESTIONS
●NABARD should take necessary initiative to reach its dierent schemes among
rural farmers.
●Publicity campaigns should be conducted to make aware among rural farmers
about the schemes of NABARD.
●Banking ocials should take a friendly approach with rural farmers.
●Proper education about schemes of NABARD must be given to rural farmers.
CONCLUSION
National Bank for Agriculture and Rural Development is an apex regulatory body for
overall regulation of regional rural banks and apex cooperative banks in India. It is
under the jurisdiction of Ministry of Finance, Government of India, which oering
dierent schemes for rural farmers, even though it is not yet reached among all the
farmers in India. Still most of the farmers in Malappuram District are unaware about
the NABARD and its activities. So Government not only introduce the schemes
but also take necessary initiative to reach it among the beneciaries then only the
objectives can be attained to a great extend.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
114
REFERENCES
1. C, PARAMASIVAN & Subbiah, Rajaram & Professor, Assistant. (2016).
Jeevan Mangal Micro Insurance in India-A Performance Approach in South
Zone. International Journal of Trend in Research and Development. 3. 320-323.
2. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
3. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
4. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
5. Paramasivan, C., & Rajaram, S. (2015). JEEVAN MADHUR MICRO
INSURANCE IN SOUTH ZONE-A BIRDS EYE VIEW STUDY.
6. Priyadharshini, J., & Muthusamy, S. (2015). A survey on investors’ favourite
investment avenues in Salem. International Journal of Commerce (IJC), 2(2).
7. S.Rajaram (2016) Prole of Micro Insurance Products-Individual v/s Group
Categories, Economic Challenger., pp.66-70
8. Selladurai, M. Evaluating the Development of Technopreneurs in Tiruchirappalli
district.
9. Selladurai, M., & Priyadharshini, J. (2017). Empowering India Through New
Start-up Technopreneurs. Intercontinental Journal of Marketing Research
Review, 5, 267-274.
10. Subbiah, Rajaram. (2020). AAM AADMI BIMA YOJANA MICRO
INSURANCE PERFORMANCE ANALYSIS IN SOUTH ZONE.
11. Subbiah, Rajaram. (2020). ANALYTICAL STUDY ON VISIBLE BALANCE
OF PAYMENT IN INDIA. 40. 129-132.
Marketing and
Finance of NABARD
116
CONTRIBUTION OF INDIAN
AGRICULTURAL SECTOR TO EXPORT:
ITS IMPACT ON ECONOMIC GROWTH
ASHA. M. GOUDAR
DURAGESH PUJARI
Research Scholar, Department of Studies in Economics
Karnatak University, Dharwad, Karnataka, India
ABSTRACT
In Indian economy the Agriculture Sector is the pre-cursor of economic development
contributing to it in four-fold manners. India contributes about 25% to the total global
production and consumes 27% of world’s consumption and imports 14% of pulses
in the world (FAO). India is the world’s third largest economy ($ 3 trillion) after
the US and China. The service sector in India playing a key role in moving the
economy towards development by contributing about 54.27% to the total GDP 2nd
is by Industrial sector 29.34% and least is by Agriculture Sector 16.38% by FY
2020-21 and on the other hand out of total workforce in India 41.49% are employed
agriculture sector 2020 (world bank). It accounts for nearly 14% of GDP, about 13
% of exports and supports half of the country’s population as its principal source
of income (58% of workforce). The objectives of the study are to analyse trends
and patterns of agricultural exports and to analyse impact of agricultural sectors on
Indian economy by Using data from FAOSTAT, World bank, Directorate General
of Commercial Intelligence & Statistics, D/o Commerce. The share of agri-exports
in total export value increased from 14.5% in 2015-16 to 19% in 2019-20. With the
growth of Indian economy, the share of Agriculture in GDP has declined over the
years and the contribution to GDP from an agrarian society has shown a decline
owing to certain benchmarks.
Keywords: Agriculture, Exports, Economic Growth
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO EXPORT
117
Introduction
The lessons drawn from the economic history of many advanced countries tell us that
agricultural prosperity contributed considerably in boosting economic advancement.
In India Agriculture is Livelihood for a majority of the population and can’t be
underestimated. Structure of Indian Economy has been changed over a time with
the anticipated decline in agriculture share in gross domestic product (GDP) India is
the top producer of milk, spices, pulses, tea, cashew and jute, and the second-largest
producer of rice, wheat, oilseeds, fruits and vegetables, sugarcane and cotton.Major
industrialized countries of today were once largely agricultural while the developing
economies still have the dominance of agriculture and it largely contributes to the GDP
of an economy. Right from earlier stages Indian agriculture sector has contributed
to international trade and it has been a major supplier of agriculture and allied
commodities in the international market. Indian Agriculture export is considered
as the extremely important as besides earning precious foreign exchange for the
country, the exports help farmers/producers/exporters to take advantage of wider
international market and increase their income. it plays a crucial role in solving the
problem of unemployment, poverty and many others through directly and indirectly.
Due to the rapid growth of world economy, the status the demand and supply situation
has undergone a drastic change and faces severe competition from the other major
players in the eld.
India is the world’s third largest economy ($ 3 trillion) after the US and China.
The service sector in India playing a key role in moving the economy towards
development by contributing about 54.27% to the total GDP 2nd is by Industrial sector
29.34% and least is by Agriculture Sector 16.38% by FY 2020-21 and on the other
hand out of total workforce in India 41.49% are employed agriculture sector 2020
(world bank). It accounts for nearly 14% of GDP, about 13 % of exports and supports
half of the country’s population as its principal source of income (58% of workforce).
As per WTO’s Trade statistics, share of India’s agriculture exports and imports in the
world agriculture trade in 2017 was 2.27% and 1.90% respectively. The exports of
agri-commodities during march 2020 to June 2020 were Rs.25552.7 Crore against an
export of Rs.20734.8 crore during the same period in 2019 showing a sharp increase
of 23.24 % respectively. Clearly it can see that the share of agriculture products in
GDP of the country was 51.9% in 1950-51 which has now declined to 20.2 % in
2020-21(NSO).
Indian agriculture has witnessed wide variations in growth performance during a
span of six decades after independence. The variability was particularly pronounced
due to the subsistence nature of farming in India and the sector’s heavy dependence
on monsoon and other climatic parameters. In the initial years after the inception of
planned development, it was the green revolution technologies that red up growth
in the sector for nearly three decades. The impact of green revolution tapered o
gradually towards the later years of the last century. Economic reforms initiated
in early nineties had a signicant impact on agricultural sector, primarily due to
the opening up of economy to external competition, liberalization of trade and
deregulation of input and other sub-sectors.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
118
The reform policies in 1990s led to an increase in agricultural exports and
improved access to domestic and foreign markets. In India, both domestic and
outward changes in economic environment can be seen since 1991, with a number of
policies being implemented to liberalize and globalize the economy (Tamizharasan,
2018). Liberalization of international trade led to rapid transformation of the export
and import conditions. WTO helped the countries to grow up and realize their
proper export potential which brought huge opportunities to grow. India’s approval
of the Agreement on Agriculture led to transformation in the levels of comparative
advantage for various agricultural commodities exported in the foreign markets
(Kumar et.al, 2005). Due to a faster agricultural growth is necessary to achieve the
desired economic growth for the economy as a whole, it is imperative to nd the
way forward for enhancing the agricultural growth. However, the Government of
India often imposes a ban on exports of dierent agricultural products from India
(Ramphul 2010). From mid of the nineties, some measures were introduced towards
liberalization in external trade in agriculture to face the domestic requirements and
in the latter part of the nineties, the measures were to meet the requirements under
the WTO which helped to make great impact on trade in agriculture. But in recent
years, there has been a decline in India’s share of agricultural exports because of
low productivity, low yields and large domestic demand.Higher domestic prices in
comparison to international prices of export products make agricultural exports less
competitive.In this context, the study has signicantly focused on trends and patterns
of agricultural imports and exports and its impacton Indian economy.
Research methodology
The study has collected and used secondary data from various issues of the handbook
on statistics (RBI), economic surveys of the Government of India, Foreign trade
statistics of India (DGCIS) and Agricultural survey reports. The simple tools are used
such as percentage, Growth rate, Compound annual growth rate for analysis of data.
Population Status of India
Remarkable growth achievement has achieved in the agricultural sector in the post
green revolution period. The country which faced a serious food shortage has now
started generating exportable surpluses. The Population data from the 1951 to 2011
is given in the Table 1 and it has been divided between rural and urban population.
Clearly it can see that the share of Agricultural workers (69.7) is more as compare to
other sectors in 1951 year. It can clearly show that with increasing population rate the
share of agricultural workers is decreasing (54.6 in 2011) due to the transmission or
structural change and many other factors are playing crucial role. The Committee on
Doubling Farmers’ Income (Chair: Mr. Ashok Dalwai, 2017) observed that one way
of signicantly improving income of farmers is by shifting the agricultural workforce
to more productive employment in non-farm sectors.
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO EXPORT
119
Population Scenario in India: 1951-2011
Year Total
Population
(Million)
Population Total
Workers
Agricultural Workes (%)
Urban
%
Rural
%
Cultivators Agricultural
Labourers
Total
1951 361. 1 17. 3 82. 7 38. 6 50. 1 19. 6 69. 7
1961 439. 2 18. 0 82. 0 43. 0 52. 8 16. 7 69. 5
1971 548. 2 19. 9 80. 1 32. 9 43. 3 26. 3 69. 7
1981 683. 3 23. 1 76. 9 35. 8 37. 8 22. 7 60. 5
1991 846. 4 25. 7 74. 3 37. 1 35. 2 23. 8 59. 0
2001 1028. 7 27. 8 72. 2 39. 1 31. 7 26. 6 58. 2
2011 1210. 9 31. 2 68. 8 39. 8 24. 7 29. 9 54. 6
Central government support to agriculture sector in India:
Given more importance the agricultural sector in the Indian economy context, every
year the government is giving estimation of budget for promotion of agricultural
development. The data provided in gure 1 shows that data from 2009-10 to 2020-21.
The Department of Agriculture, Cooperation and Farmers’ Welfare has been allocated
rupees 12, 00, 00, 000(0.12) crores in 2009-10 budget estimation. Were as actual
expenditure (0.12) being also same. In the year 2010-11 the budget estimation is 16,
00, 00, 000(0.16) crore and actual expenditure is 0.17(17, 00, 00, 000). Given more
importance to the agricultural occupation the government is increasing budgetary
incentives to in yearly budget. In the year of 2011-12 the estimation was 18 crores
(0.18) the actual expenditure was (0.17) 17 crores. In 2012-13 The budget estimation
was 21 crores and actual expenditure was 18 crores. Due to lack of importance towards
agricultural sector the allocation of budget towards this sector is declined which can
reect in the year from 2012-13 to 2015-16. When the government realise the real
economy growth is in agricultural sectors along with other sectors, the government
is trying to give more importance to this by giving more budgetary estimation. The
distribution of budget estimation increased from the year 2016-17 as 36, 00, 00,
000 crores to 1, 34, 00, 00, 000(1.34) in 2020-21. The actual expenditure towards
agricultural sector is increased from 37, 00, 00, 000 crores to 70, 00, 00, 000 crores.
The Standing Committee on Agriculture (2015-16) observed that a slow pace of
utilisation of funds in the rst half of the nancial year results in a cut in allocation
for the rest of the year, which leads to underspending leads (Fig 1).
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
120
Trends of Budgetary supports of Central government of India: 2009-10
to 2020-21
0.12
0.16
0.18
0.21
0.22
0.23
0.17
0.36
0.42
0.47
1.30
1.34
0.12
0.18
0.17
0.18
0.19
0.20
0.16
0.40
0.41
0.68
1.02
0.12
0.17
0.17
0.18
0.19
0.20
0.15
0.37
0.38
0.47
0.95
0.70
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
BE RE AE*
Source: Department of Agriculture, Co-operation & Farmers Welfare
Note: BE-Budget Estimates, RE- Revised Estimates and AE-Actual Estimates
Gross Capital formation in agriculture sector
The role of capital formation in agriculture plays a crucial role in agricultural sector.
Investment in agricultural in both public and private are both complementary as well
as substitutive. There are the reasons for occurrence where an increase in public
investment has led to increase in private investment in agriculture. capital formation
in agriculture helps to bring technical progress by shifting the production frontier
upward. It helps by providing Maximum Proper utilisation of land, diversication
of agriculture, increasing agricultural yield, change in the cropping pattern and also
helps to expand agricultural market which results in marketable surplus it leads to
increase income of farmers and also easy access to agricultural products for the
consumers.
Gross Capital Formation (GCF) in Agriculture and Allied sector in
India:2011-12 to 2019-20
Year At constant (2011-12) Prices At Current (2011-12) Prices (%)
Public Private Total Public Private Total
2011-12 2.4 15.9 18.2 2.4 15.9 18.2
2012-13 2.4 14.1 16.5 2.4 14 16.3
2013-14 2.1 15.6 17.7 2.1 15.1 17.2
2014-15 2.3 14.7 17 2.3 13.6 15.9
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO EXPORT
121
2015-16 2.6 12.1 14.7 2.5 10.9 13.4
2016-17 2.8 12.8 15.6 2.7 11.3 14
2017-18 2.5 12.3 14.8 2.4 10.5 12.8
2018-19 2.9 13.1 16 2.8 11.6 14.4
2019-20 2.7 14.3 17 2.7 13.1 15.8
CAGR 2.7 -2.1 -1.3 2.3 -3.7 -2.7
Source: National Statistics Ofce (NSO)
Note:
1. GCF of economy (Public Sector) is the sum of GCF of Public Non-nancial
corporations, Public Financial Corporations and General Government
2. GCF of economy (Private Sector) is the sum of GCF of Private Non-Financial
corporations, Private Financial Corporations and Households.
The trends in Gross capital formation in Indian agriculture and allied sector are
depicted in Table 2 with current and constant prices. It is noteworthy that capital
formation in public sector grew at a positive rate during the period 2011-12 to 2019-
20 but not as much as in private sector. It can see that in constant prices the total
GCF is declined from 18.2% (2011-12) to 17%(2019-20) as year on. 2011-12 year
reaching a peak of 18percent per annum, there was a decline in capital formation
in the public sector. There is negative growth rate (-1.3). The share private sector is
more dominating than public sector in both Constant & Current prices but it signs
negative impact (-2.1) on agricultural sector (CAGR). In current prices the GCF in
agricultural and allied sector total share is 18.2 which was declined to 15.8 in the year
of 2019-20. The decline in public sector capital formation is reected in total capital
formation in the agriculture sector (Table 2).
Gross Capital Formation in Agriculture and Allied sector in India
The data provided in Table 3 shows the share of agricultural, forestry & shing sector
in overall GVA of the country is showing an increasing trend in constant and current
prices said in the report on agriculture, forestry and shing from 2012-13 to 2020-21
.Growth of agriculture sector has been uctuating, Gross value addition in agriculture
gradually improved from -0.2% in 2014-15 to 6.8% in 2016-17, and then decelerated
to 2.6% in 2018-19 and then increased to 4.3 % in 2019-20’s revised estimation in
the constant prices. When we look at the current prices the situation remains the same
matter that is the agriculture, forestry & shing increased at rate of 18.2% in 2012-13
year and then declined at the rate of 17.7 % in 2015-16 again increased in 2020-21
at the rate of 20.2% even though in a pandemic situation“Agriculture helps expedite
India’s economic recovery”. All over the decline was mainly due to a decrease in
the share has been declining on account of relatively higher growth performance of
non-agricultural sectors.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
122
Share of GCF in Agriculture and Allied sector in GVA of Economy:
2012-13 to 2020-21
Constant (2011-12) % Current %
Year Agriculture,
forestry &
fishing
Industry Services Agriculture,
forestry &
fishing
Industry Services
2012-13 1. 5 3. 3 8. 3 18. 2 31. 8 50. 0
2013-14 5. 6 3. 8 7. 7 18. 6 30. 8 50. 6
2014-15 -0. 2 7. 0 9. 8 18. 2 30. 0 51. 8
2015-16 0. 6 9. 6 9. 4 17. 7 30. 0 52. 3
2016-17 6. 8 7. 7 8. 5 18. 0 29. 3 52. 6
2017-18* 6. 6 5. 9 6. 3 18. 3 29. 2 52. 5
2018-
19#
2. 6 5. 3 7. 2 17. 6 29. 0 53. 4
2019-
20@
4. 3 -1. 2 7. 2 18. 4 26. 7 55. 0
2020-21` 3. 0 -8. 2 -8. 1 20. 2 25. 6 54. 3
CAGR 17. 2 -1. 4 -2. 2 0. 6 -2. 3 1. 1
Source: National Statistics Ofce (NSO)
India’s Imports of Major Agri- Commodities
Beyond several constraints the performance of Indian agriculture sector is noteworthy
in global context. Agri-imports constitute only a small proportion of the country’s
total imports. The table 4 reveals that the India’s major agri-commodities imports
period between 2010-11 to 2019-20. By year follows had higher imports (as a share
of GDP). It is pertinent to note that during the decade of 2014-15 the total agricultural
imports is drastically demanded of rupees 1, 21, 319.0 crore rupees to 1, 64, 726.8
crore rupees in the 2016-17 and then declined, in terms of Total National imports.
Given major agri-commodities the Pulses (28, 523.2 crore -2016-17) however it has
signicantly declined (10, 221.5crore 2019-20) trend buthas been able to broadly
keep pace with the demands of imports from a growing population and low level of
domestic availability (Table 4). The share of agri-imports in National imports trends
also reect the changing pattern. However, in India Green Revolution in agriculture
of the 1960s made impressive strides and also imports-substitution strategy.
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO EXPORT
123
India’s Imports of Major Agri- Commodities2010-11 to 2019-20. (Rs in
Crore)
Year/
Commodity
Tea
Coffee
Rice- Basmati
Rice (other than Basmati)
Wheat
Other cereals
Pulses
Total Agri Imports
Total National Imports
Share of Agri Imports in
National imports
2010-11 202. 0 295. 0 0. 0 0. 9 255. 8 59. 5 7512. 5 51074. 0 1683467. 0 3. 0
2011-12 218. 9 469. 5 2. 5 3. 0 0. 1 30. 0 9448. 4 70164. 5 2345463. 2 3. 0
2012-13 274. 5 795. 7 0. 0 4. 0 6. 0 111. 0 13344. 6 95718. 9 2669162. 0 3. 6
2013-14 291. 7 729. 0 0. 0 8. 3 26. 9 98. 0 11036. 8 85727. 3 2715433. 9 3. 2
2014-15 388. 7 930. 5 0. 0 10. 8 61. 3 61. 8 17062. 9 121319. 0 2736677. 0 4. 4
2015-16 377. 5 801. 8 0. 0 5. 9 872. 6 344. 3 25619. 1 140289. 2 2490303. 8 5. 6
2016-17 338. 4 926. 8 0. 0 7. 3 8509. 1 493. 2 28523. 2 164726. 8 2577671. 1 6. 4
2017-18 357. 0 996. 5 0. 0 12. 2 2357. 8 433. 9 18748. 6 152095. 2 3001028. 7 5. 1
2018-19 418. 0 958. 6 0. 0 32. 1 5. 4 471. 3 8035. 3 137019. 5 3594674. 2 3. 8
2019-20 (P) 411. 1 962. 2 0. 0 78. 8 4. 6 1221. 1 10221. 5 147445. 8 3360954. 5 4. 4
CAGR 6. 6 12. 8 0. 0 52. 0 13. 5 36. 7 4. 2 12. 5 7. 7 4. 5
Source: Directorate General of Commercial Intelligence & Statistics, Department of Commerce.
India’s Exports of the Major Agri-Commodities
Recent trends in the international trade scenario and related shifts in India’s foreign
trade policy have had comprehensive consequences for India’s general agricultural
sector and, in particular, for agricultural exports. India can play a major role in global
market for agri products as it has a large land area and large labour force under
agriculture The Indian product of agriculture has played an important part in the
global product of agriculture. For many agricultural commodities, India used to be
the key export spot. Agriculture sector has achieved remarkable growth in the post
green revolution period. The country which faced a serious food shortage has now
started generating exportable surpluses.
The Table 5 represents the exports of the major agri-commodities duration covered
by 2009-10 to 2019-20. The composition of agriculture and allied product exports of
India includes tea, coee, rice, cotton, oil meals, fruits and vegetables, other cereals,
Pulses and many others. The value of agricultural exports of tea was 2943.5 crore
rupees in 2009-10 which increased to 5851.1 crore rupees in 2019-20 and overall
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
124
positive growth rate at 6.1% (CAGR) percent. The share of export earnings of rice
(other than basmati) was 365.3 crores in 2009-10 and increased to 14400.3 crores in
2019-20. For Wheat, the share in total export earnings of agricultural products was
only about 0.1 crores in 2009-10 which increased to 10529.0 crores in 2012-13 and
drastically declined 444.2 crores in 2019-20. Overall, 74.3 % (CAGR)growth rate
in wheat exports.
India’s Exports of the Major Agri-Commodities (Rs.in crores)
Year
Tea
Coffee
Rice- Basmati
Rice (other than Basmati)
Wheat
Other cereals
Pulses
Total Agricultural Exports
Total National Exports
% Share of Agricultural
Exports in National Exports
2009-10 2943. 5 2032. 1 10889. 6 365. 3 0. 1 2973. 2 408. 3 86171. 1 845533. 6 10. 2
2010-11 3354. 3 3009. 9 11354. 6 231. 3 0. 7 3648. 5 870. 0 113046. 6 1136964. 2 9. 9
2011-12 4078. 5 4534. 6 15449. 6 8659. 1 1023. 2 5492. 9 1067. 9 182801. 0 1465959. 3 12. 5
2012-13 4718. 8 4711. 1 19409. 4 14448. 8 10529. 0 8180. 6 1285. 0 227192. 6 1634318. 3 13. 9
2013-14 4873. 3 4799. 1 29291. 8 17795. 2 9277. 7 7178. 1 1748. 8 262778. 5 1905011. 0 13. 8
2014-15 4171. 3 4973. 3 27586. 7 20441. 6 4991. 8 5262. 2 1218. 3 239681. 0 1896348. 4 12. 6
2015-16 4719. 0 5125. 5 22718. 6 15483. 4 1061. 8 1702. 5 1655. 9 215396. 3 1716384. 4 12. 6
2016-17 4905. 6 5646. 4 21512. 9 16929. 9 447. 9 1425. 8 1277. 7 226651. 9 1849433. 6 12. 3
2017-18 5396. 7 6245. 4 26870. 7 23437. 2 624. 4 1604. 3 1469. 6 251563. 9 1956514. 5 12. 9
2018-19 5828. 3 5722. 0 32804. 3 21171. 2 424. 5 2426. 1 1801. 5 274571. 3 2307726. 2 11. 9
2019-20 5851. 1 5236. 8 31026. 3 14400. 3 444. 2 1454. 7 1511. 8 252976. 1 2219854. 2 11. 4
CAGR 6. 1 8. 2 10. 6 43. 3 74. 3 -11. 8 9. 9 9. 2 8. 2 0. 9
Source: - Directorate General of Commercial Intelligence & Statistics, Department of Commerce.
The contribution of export earnings of other cereals in total agricultural export
declined to 1454.7 crores in 2019-20. The absolute earning of all the products has
increased over the years except other cereals. However, its percentage share of
agricultural exports in national exports shows a declining trend. It can be observed that
the relative importance of exports of wheat; etc. has declined. But some commodities
like Tea, coee, rice, other cereals and pulses have shown an increasing trend (CAGR)
in contribution of total agricultural exports. It is pertinent to observe that during the
FY 2010-11 the total agri-exports are drastically pegged at the rate of 11, 30, 466 crore
rupees to 27, 45, 713 crore rupees in FY 2018-19.Percentage Share of Agricultural
Exports in National Exports (Table 6).
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO EXPORT
125
Agriculture Imports and Exports(RsCrore)
Year
Total Agri
Imports
Total National
Imports
Share of
Agri Imports
in National
imports (%)
Total
Agricultural
Exports
Total National
Exports
Share of
Agri Exports
in National
Exports (%)
2010-11 51074. 0 1683467. 0 3. 0 113046. 6 1136964. 2 9. 9
2011-12 70164. 5 2345463. 2 3. 0 182801. 0 1465959. 3 12. 5
2012-13 95718. 9 2669162. 0 3. 6 227192. 6 1634318. 3 13. 9
2013-14 85727. 3 2715433. 9 3. 2 262778. 5 1905011. 0 13. 8
2014-15 121319. 0 2736677. 0 4. 4 239681. 0 1896348. 4 12. 6
2015-16 140289. 2 2490303. 8 5. 6 215396. 3 1716384. 4 12. 6
2016-17 164726. 8 2577671. 1 6. 4 226651. 9 1849433. 6 12. 3
2017-18 152095. 2 3001028. 7 5. 1 251563. 9 1956514. 5 12. 9
2018-19 137019. 5 3594674. 2 3. 8 274571. 3 2307726. 2 11. 9
2019-20
(P)
147445. 8 3360954. 5 4. 4 252976. 1 2219854. 2 11. 4
CAGR 12. 0 6. 0 5. 7 6. 3 6. 2 0. 1
(P) Provisional
Imports and Exports of Agriculture
Steadily India has maintained a trade surplus in agricultural commodities over the
years (Fig 2). India’s agri-imports increased from Rs.51074.0 crores in 2010-11
to Rs.147445.8 lakh crores in 2019-20, However, the share of agri-imports in national
imports was increased from3.0% in 2010-11 to 6.4% in 2016-17, In 2019-20 there was
a drop in imports by 4.4% and CAGR was5.7% respectively. Likewise, the exports
of agricultural products have also increased over the years. In 2010-11, total agri-
exports were worth Rs.113046.6 crores which went up to Rs. 2219854.2 lakh crores
in 2019-20. However, since 2014-15, the share of agri-exports in national exports
dropped at 12.6% to reach 11.4 % in 2019-20. In the new millennium, agricultural
exports regained momentum. However, its share declined because of even higher rate
of growth of non-agricultural exports, particularly of manufacturing export. During
the period, the relative importance of dierent commodities of India’s agricultural
and allied export items changed considerably (Fig 2).
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
126
Fig 2: Imports and Exports of Agriculture (Rs in Crore)
61972.61
112636.49
131473.72
177051.24
118362.02
75107.1
61925.08
99468.74
137551.82
105530.25
-546502.74
-879503.93
-1034843.67
-810422.91
-840328.57
-773919.36
-728237.59
-1044514.18
-1286948.03
-1141100.28
-1400000
-1200000
-1000000
-800000
-600000
-400000
-200000
0
200000
400000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
(P)
Exports-Imports (Agri) Exports-Imports (total)
Source: Directorate General of Commercial Intelligence & Statistics, Department of Commerce
Exports, Imports and Economic Growth
The data provided in Fig 3, shows that exports and imports growth trend along with
the economic growth from FY 2011-12 to 2019-20. It can reect that with growing
economy (6.6%) the share of exports (61.7%) was increased with the declining trend
of imports (37.4%) in the year of 2011-12. Again, with decreasing of GDP (5.5%)
drastically declined in the exports (24.3%) and increased imports (36.4%) in the
2012-13. In the FY of 2013-14 the imports were going in negative path (-10.4%)
with decreasing sign of exports (15.7) and the GDP were 6.4 %. Unfortunately, in
the FY 2014-15 and 2015-16 the share of exports (-8.8, 10.1) was hit down with
the increasing trend of both imports (41.5, 15.6) and GDP (7.4) respectively. Slow
recovery of exports (8.3%) along with imports (17.4%) and GDP were (5.2 %) in
FY 2016-17. Decreasing trend of imports (-7.7) with increasing Exports (11.0%)
were shows 38.9 % increase in GDP in 2017-18. The trend continues with decline of
GDP 9.1 % and 10.5% of exports and negative growth of imports (-9.9%).in
2018-19. In the year 2019-20 the exports share was going with negative path (-7.9%)
positive growth of imports (7.8%) and declining trend of GDP (7.6%) respectively.
In totally the all three trends were going with a lot of uctuations, these instabilities
were due to the political constrains, Socio-economic drawback, mainly consumer’s
perceptions towards the consumption pattern, Non- availability of certain goods in
domestic market and many other reasons were reecting on the increase the imports,
similarly with the exports. These exports and imports were reecting on GDP of a
nation.
CONTRIBUTION OF INDIAN AGRICULTURAL SECTOR TO EXPORT
127
Fig 3: Trends of Exports, Imports with Economic Growth in India
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (P)
GDP Gr (%) Imports Gr (%) Exports Gr (%)
Policy suggestions and conclusions
In the study, found thatthere is positive relationship between the Share of Agricultural
Exports in National Exportsand India’s GDP of agriculture.But somehow the nation
should also reduce the dependency over certain importable agricultural products
instead of that it should go for the import-substitution strategy and public investment
over the agriculture production and exportation should also increase with new ICT
which some of the private sectors are providing in rivalry and excludable manner to
the Agri sector and the government should also to care that it should not be provided
the non-excludable and non-rivalry nature otherwise it becomes Free Riding , and
directly or indirectly create deciency . The agricultural exports can play a role similar
to that of other drivers of growth, particularly in the low and middle-income countries.
A multi-dimensional reform agenda for agriculture should be drawn up for improving
incentives to produce, rationalizing subsidies and promoting investments, removal of
domestic market control on agricultural produce andStrengthing poverty alleviation
programmes. Potentially there is a need for agricultural growth by adopting the
outward-looking, export-promotion policies.
Enhancing agricultural productivity, competitiveness, and rural growth Promoting
new technologies and restructuring/increasing agricultural research and development
and expansion, lowering agricultural diversication to higher- value commodities,
developing markets, agricultural credit and public expenditures, Sustaining the
environment and future agricultural productivity.The policy implication of these
ndings is that in order to accelerate the agricultural growth rate in India, there is a
need to encourage the agricultural exports. In further research, it may be useful to
extend the analysis to the other leading farm producing developing countries.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
128
References
1. GOI (2020). Agricultural Statistics at a Glance, Government of India Ministry
of Agriculture & Farmers Welfare Department of Agriculture, Cooperation &
Farmers Welfare Directorate of Economics and Statistics.
2. Kumar, N. R., et al (2005). Impact of WTO on potato export from India,
Agricultural Economics Research Review, 18(347-2016- 16689), 291-304.
3. Ramesh Chand and Shinoj Parappurathu. Historical and Spatial Trends in
Agriculture: Growth Analysis at National and State level in India, National
Centre for Agricultural Economics and Policy Research, New Delhi
4. Ramphul O. (2010). WTO and Indian Agriculture. Global Research Publications,
New Delhi
5. Tamizharasan, M. (2018). Growth of Agriculture Trade in the Indian Economy,
International Journal of Research and Innovation in Social Sciences, 2 (3):
27-32
6. S.Rajaram (2017) Empowering Indian Economy Through GST in India,
Economic Challenger., Issue 77., pp.46-50
7. Subbiah, Rajaram. (2020). KAAV INTERNATIONAL JOURNAL OF
ECONOMICS, COMMERCE & BUSINESS MANAGEMENT.
8. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
9. C, PARAMASIVAN & Subbiah, Rajaram. (2015). An Overview of Micro
Insurance Industries in India.
10. Subbiah, Rajaram. (2020). MICRO INSURANCE -A CONCEPTUAL
ANALYSIS.
11. Selladurai, M. Evaluating the Development of Technopreneurs in Tiruchirappalli
district.
12. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
13. Priyadharshini, J., & Muthusamy, S. (2015). A survey on investors’ favourite
investment avenues in Salem. International Journal of Commerce (IJC), 2(2).
14. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
129
THE MICROFINANCE - “INITIATIVES
OF NABARD” IN CONTEXT TO
AGRICULTURE SECTOR
Poonam
Research Scholar, Chandigarh University
Amrit Kaur
Assistant Professor, Chandigarh University
ABSTRACT
After Independence, there were two major concern for India, First was the count of
job-less and second was Underdevelopment. The reason behind these problems has
been lack of nancial assistance. Due to these both factors, sustainable development
has been considered as arduous. In addition to this, the dierence between poor
and rich class has also increased. To gain the development path with sustained
level of surplus in form of deposits and investment, Micro- Finance via Self Help
Groups (SHG) allows penniless to avail credit. As a result they will not be nancially
dependent and will grow as well. These people utilize the funding to run their own
business and create assets to eliminate scarcity of funds. Micronance has achieved
to be the jargon in India. SHG promotion, women empowerment, nancial services
delivery, and general poverty eradication through comprehensive nancial inclusion
have all beneted from the SHG initiative. This paper will focus on the initiatives
of NABARD in the sector of Micronance for developing the Indian Agriculture.
Keywords: Micro-nance, SHGs, Agriculture, Sustainable growth.
INTRODUCTION
Micronance service was begun as pilot project by NABARD in 1992 by Self Help
Group. At that time, the programmed proved itself as the biggest success model of
micronance in India. Though, it is not consolidated framework. It is managed by
CBs, RRBs, NGO’s & NBFC’s whereas Banks & NBFC’s regulated by RBI and Self
Help Groups by NABARD.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
130
Two-Third India resides in rural area in comparison to whole population.
This particular strength is majorly work in agriculture that is having a signicant
contribution around 17.2-18% to total GROSS DOMESTIC PRODUCT of India.
Nonetheless, the dependency on the activity of agriculture has been gradually
decreased with SMALL SCALE COTTAGE Industries & SHGs achieving heights
in non-urban region of the country. As a result, the input has clearly visible in rural
area where Micronance Industry increased participation unto 30.2% in few last
years through SHGs. Notwithstanding, these industries & SHGs mostly dependent
on private lenders to get nancial assistance from big banks. In this situation, the
option that attracts the vital place in funding activities is Micronance. There is a very
prominent role of Micronance in improving the condition of funding assistance in
non-urban area. This study will examine the role, challenges and initiatives taken by
NABARD in the area of Micronance.
Research Methodology
The Analysis of this particular examine is eloquent in nature established on secondary
statistics for current study is gathered from several sources (reports published by
NABARD, published research papers, journals) to access the actions taken by
NABARD in Agriculture. The relevant information related to initiatives were
collected from ocial report of Micronance published on the website of NABARD.
Micronance and Agriculture Sector
Micronance is a mode to provide funding to the needy groups or the population
depending upon agriculture income. Under this nancial aid, they provide various
types of assistance. As this amount is required by lower wage rate people, the services
are also smaller in amount. This service is developed by mirroring to banking system
to support those section of the society who are neither having any job or nor having
good source of income to earn and balance their livelihood. To make this happen,
self-help groups are formed to help the whole sector.
The only goal or objective of is to give the platform of nancial opportunity to
the non-urban population of the country. This will lead towards the nancial self-
dependency by accruing own source of income and creating assets for future in form
of land, business etc.
The role of MFIs is to allow the circulation of the scare resource (money) via
proper channel towards the needy one in form of saving and investment amongst
them. Not only this but they have also supported the task load of banking sector by
sharing their responsibilities towards agricultural land and the human associated with
it by working under specied guidelines.
Signicance of MFIs in Agriculture Sector
The Biggest contribution of MFIs is to provide credit to the rural population, poverty
elimination, empowering the women, growth of the economy, and circulation of
money in form of saving, initiating skill development trainings and programs for the
THE MICROFINANCE - “INITIATIVES OF NABARD” IN CONTEXT TO AGRICULTURE SECTOR
131
people to make them self- employed and ecient, giving the mantra of sharing and
caring by mutual cooperating with each other in nancial terms and last but not the
least social enhancement of the society as whole by doing welfare.
Challenges
Being the reason of good cause, still MFIs has also encountered various hurdles in the
path of welfare which we called the challenges and these are not due to one reason.
As we have discussed in the above mention paper that how MFIs were emerged,
collaborated with banking system and NABARD and given birth to SELH HELP
GROUPS to reach to the main aim.
One of the major factor of contribution is lack of nancial understanding or we
can say literacy, secondly, inability to raise the funds from NBFCs, thirdly heavy
dependency on banks, fourthly mismanagement or not so strong governance, fth
era of competition, sixth interest rates and their link with political sensitivity and
requirement to avoid latest trends. So to deal with this all, NABARD has taken certain
initiatives in 2021.
Initiatives taken by NABARD, 2021
As per NABARD, SHG-BLP is the biggest of all whole globe that having 13.8 crore
families with 112 lakh SHGs money in the banks 37, 477 crore where annuary credit
intake 58, 000 crore and 1, 03, 289 crore is outstanding.
ORGANISATIONS Accredited during
the year 2020-21
Releases during
the year 2020-21
Accumulative
Sanctions allowed
on 31st March
2021
Accumulative
Release on 31st
March 2021
Amount
(lakhs)
Number
of Self
Help
Groups
promoted
Amount
(lakhs)
Number
of SHGs
savings
linked
Amount
(lakhs)
Numbers
of Self
Help
Groups
promoted
Amount
(lakhs)
Number of
Self Help
Groups
savings
linked
1. RRBs 0 0 0 0 1764. 3 61656 666. 9 55288
2. NGOS 654 6470 427. 57 9811 38043. 8 700652 15599 544497
3. IRVs 0 0 0 0 455. 18 26350 78. 25 12313
4. SHG
Federations
0 0 0 0 25. 4 200 12. 37 46
5. PACS 41. 2 800 42. 94 1199 669. 61 14925 95. 57 3311
6. COOP. BANKS 0 0 23. 15 534 1294. 22 66782 609. 33 59975
7. NGOs-MFIs 172. 13 2569 37. 7 1126 337. 13 5869 41. 7 1126
8. FARMERS
CLUB
0. 13 10 0. 13 0 46. 13 5138 20. 45 4469
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
132
Sum Total 867. 46 9849 531. 49 12670 42635.
77
881572 17123.
57
681025
Women SHG
Scheme (in 150
LWE affected and
backward
districts)
Anchors NGO NA NA 651. 64 18 20438. 1 204381 13948 129167
Source-: https://www. nabard. org
1. NABARD will grant the support to agencies for promoting and nurturing SHGs.
2. Will run scheme for women, to promote backward and rural areas of nation.
3. NABARD will give support to JLGs for their own formation and nurturing.
4. Livelihood interventions will be supported for SHGs.
5. Development Programme will be introduced for Micro Enterprises i.e. (MEPD-
MICRO ENTERPRISED DEVELOPMENT PROGRAMME).
6. LEDP Programme.
7. Innovation projects under LEDP NABFOUNDATION.
8. Support and training will be provided to MFIs client.
9. Permitting grants to the village programmes.
10. To support digital india, ESHAKTI will be launched.
11. Renance help to banks
12. Support to MFIs framework.
13. Special initiatives during pandemic (COVID19).
14. Implementation of National Rural Livelihood Mission (NRLM) and Scheme
for Interest Subvention to Women SHGs.
Findings
This paper has found out the nation is having a large count of people and specically
those who are having their roots attached with rural and agricultural area who neither
have accessibility to banks nor to any nancial services or aids. As a result, NABARD
in association with RBI and government of India has taken these above mentioned
initiatives which clearly states that even these supporters are having some challenges
in their path way but still being optimistic is something that will bring the goal closer
and make it accomplish in future.
Recommendations
There are some recommendations on the basis of above ndings
●There should be a proper standardized regulation for the cooperation of MFIs
and NBFCs.
●MFIs also needs to upgrade their services in context to diversity.
●Digital India motto, can also be connected under MFIs working and management
for smooth functioning like interest rate calculation, risk analysis.
THE MICROFINANCE - “INITIATIVES OF NABARD” IN CONTEXT TO AGRICULTURE SECTOR
133
●Well trained teams should be prepared who can earn incentives by educating rural
population.
●The insight of MFIs must be change. In other words, rather than considering as a
social or charitable body, can be called as protable and sustainable one.
REFERENCES
1. Anil Kumar Thakur and Praveen Sharma (2009) Micro credit and Rural
Development Assocham Sumit on Financial Inclusion & Growth 10th may
2010.
2. Annas. J. (1993).Women and the quality of life. Two Norms or One? in The
Quality of life, edited by Martha C. Nussbaum and Amartya Sen.
3. Bringing nancial services to the masses An NCR White Paper on nancial
inclusion (2009). Boudreaux. Karlo and Tyler Cowen (2008).
4. Idowu Friday Christopher (2010), Impact of Micronance on Small and
Medium-Sized Enterprises in Nigeria.
5. KKIMRC IJRFA Nikita (2014) An Analysis of Performance of Micro Finance
in India, International Journal of Management Research & Review Volume 4,
Issue 7, pp. 715-721.
6. Kumar vipin, Chauhan Monu and Kumar Ritesh (2015) An Overview of
Micronance in India, Abhinav National.
7. Ledgerwood, J., (1999). Micronance Handbook: an Institutional and Financial
Perspective, The World Bank: Sustainable Banking with the Poor, Washington
D.C.
8. Mahanta Padmalochan, Panda Gitanjali and Sreekumar (2012) Status Of
Micronance In India - A Review, International Journal of Marketing, Financial
Services & Management Research Vol.1, Issue 11, pp. 142-155.
9. Maruthi Ram Prasad, Dr. G. Sunitha and K. Laxmi Sunitha (2011), Emergency
and Impact of Micro-Finance on Indian Scenario.
10. Rosenberg, R. and Littleeld, E., (2004). Micronance and the Poor: Breaking
Down Walls between Micronance and Formal Finance. Finance and
Development, CGAP.
11. Sekhri.V (2007).Growth and challenges faced in Micronance. Trends and
Future outlook. Journal of IMS Group. 3(1). 70-76.
12. Sen, Mitali (2008), “Assessing Social Performance of Micronance Institutions
in India”, The ICFAI Journal of Applied Finance, Vol. 14, No. 86, pp.77-86.
13. Singh B. and Chawala s. (2009). Micronance through and with SHG. An
Analytical Study ed. Book. Banking in the New Millennium Mahamaya
Publishing House, New Delhi
134
COMMERCIAL CHIVE CULTIVATION
IN MANIPUR: BOON FOR SMALL
FARMERS, RURAL TRANSFORMATION
AND AGONY OF PANDEMIC
Dr. SHREEDA CHUNGKHAM
Department of Economics, Nambol L. Sanoi College, Manipur
ATHILI LOLIA
Department of Economics, GP Women College, Manipur
ABSTRACT
The paper focuses on the commercial cultivation of Chives (Allium Tuberosum)
by small farmers of Manipur. Locally known as MaroiNakuppi, this evergreen,
herbaceous, perennial plant is used as a spice/condiment in almost all household
and traditional dishes of Manipur. The commercial and farm cultivation of Chives
that started about 18 years ago have been a boon in the economic upliftment of the
farmers in particular and rural folks in general. The paper is based on survey of famers
from villages (Moirangkampu, Angomleikai, Kanglasagomsang and Kanglasiphai)
in Imphal east district where it is commercially cultivated. The paper looks at the
socio-economic transformation that commercial chive cultivation has ushered in.
Stable, regular and higher income, employment generation for women and youth,
higher enrolment of children in school to increasing forest cover, backward and
forward linkages are some of the desirable outcomes. The paper analyses the factors
that drives the success of chives cultivation. Any farmer with basic tools, skill, low
investment and farm size of 0.62 acres can generate net monthly income of Rs. 30, 000
to Rs. 45, 000. The paper also reects upon the challenges and toll of the pandemic
and the consequent response of farmers.
Introduction
Chives (botanical name: Allium Tuberosum) locally known as MaroiNakuppi is
an evergreen, herbaceous, perennial plant. Popularly consumed as food in China,
Northeast India, Sri Lanka, Bhutan, Myanmar and European countries.Prior to
COMMERCIAL CHIVE CULTIVATION IN MANIPUR
135
introduction of onion into the food culture of Manipur, chive is used as spice/
condiment both in dry and fresh form in almost all household.Rapid urbanization
and disappearing kitchen garden has taken its cultivation on a commercial scale and
to the elds where paddy was once cultivated. In Manipur, commercial and farm
cultivation of Allium Tuberosum chive species started about 18 years ago and have
been a boon in the economic upliftment of the farmers in particular and rural folks in
general. Farming on a large scale rst started in Top Leikai under Imphal East district.
The visible socio-economic transformation in this village motivated neighboring
villages to emulate its plantation.Currently it is cultivated on commercial scale in
neighbouring villages namely Moirangkampu, AngomLeikai, KanglaSagomsang
and KanglaSiphai in Imphal-East district.There is acute shortage of reliable data
when it comes to Northeast India and for decades it has been the major bottleneck
for meaningful research and policy intervention. Despite the visible socio-economic
changes ushered in by commercial chive cultivation there is no research to refer and
no data to theorise and contextualise the transformation. In the above mentioned
villages around 200 households are fully dependent on chives cultivation. The current
research is based on extensive eldwork that addresses dierent stakeholders directly
and indirectly associated with commercial chive farming. The survey gives the
basis for understanding the socio-economic transformation that commercial chive
cultivation has ushered in Manipur. The paper analyses the factors that drives the
success of chives cultivation and also reects upon the challenges and toll of the
pandemic.
The paper is organised in six sections. Section II summarises the numerous
studies on Allium Tuberosum. This is followed by discussion on various facets of
commercial cultivation of chives in Manipur in section III. The rural transformation
experienced in the above villages are summarised in section IV. The following section
V highlights the challenges that are characteristics of commercial chive cultivation
and the agony of the pandemic. Section VI concludes.
Literature Review
Allium Tuberosum have been the focus of numerous scientic studies in recent years.
These studies address various aspects of the plant which this short literature review
attempts to sum up. With respect to cultivation and economic utilities the studies
mainly focus on ways to enhance the yield by analyzing the eectiveness of chemical
fertilizers like Thiourea and frequency of its application (Uddin et. Al, 2019), to
enhance the quality and productivity by using slow release fertilizers (Wang et al,
2020) and factors that determine growth and ower budding (Hahn and Takano,
1986). Another theme of scientic research focuses on diseases Allium Tuberosum
are susceptible to, namely occurrence of sclerotium rot caused by S. Roli (Kwon
et.al., 2011), iris yellow spot virus (Gawande et al, 2014). Chives being apomictic,
creation of variations and development of new varieties is dicult thereby making
any genetic transformation and mutation a challenge (Alizadeh et.al, 2013). Chives
have received attention in ecological, plant sciences and agronomy to decipher various
types of interactions between plants and their microbiomes (Wang et al, 2020).
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
136
There already exists evidence of promising future for Allium Tuberosum as
antibacterial and antioxidant reagents; and its crude extract can be stepping stone
towards innovative products in food, cosmetic, medicinal industries (Napatsornet. Al,
2016; Sultana et. Al, 2015) and nutraceutical industry (Sultana and Moshin, 2014).
Advance clinical research have established Allium Tuberosum as a potential source for
lead compound or new drugs for treatment of cancer, hepatic disorders and impotency
(Jannat et. Al. 2019). Its pharmacological properties ranges from antidiabetic and
hepatoprotective, antibacterial, antifungal, ant parasitic, aphrodisiac, anti-cancer,
hypolipidemic, pesticidal, renoprotective, promoting hair growth, anticoagulant,
regulate hormonal imbalance to mediating sensory perception ((Jannat et. Al. 2019).
Its aqueous extract has curative eects on malignant melanoma (Carolina et al, 2020),
exhibits signicant anthelminthic activity (Kumar et al, 2018).
Research on uses of specic parts of the plant have stablished that its leaves
provide immune-stimulant eect (Sutejo et al, 2016), from its seeds new steroidal
saponins have been successfully extracted (Sang et al, 2001) while n-BuOH extract
preparation possesses aphrodisiac property (Gouhuaa et.al., 2009). As for its root,
essential oil derived from it has larvicidal properties and can be a potential source
for natural larvicides (Liu et al, 2015). Also, fermentation may lead to an increase in
bioactive compounds including total polyphenol and avonoid (Hong et. Al., 2016).
With climate changes and vulnerability of crops like garlic and onion, Chives
is identied for its commercial potential to supplement onion and garlic (Pandey
et.al, 2014). In South China it is used for intercropping and rotating with banana to
control panama disease in banana (Zhang et. al, 2013). Intercropping of this plant
has been tested against Pseudomonas solanacearum on tomatoes (Yu 1999), root-knot
nematode on tomatoes (Huang et al. 2016) and for reducing TSSM populations in
strawberry leaves (Hata et al. 2016).
The research highlighted above provides scientic basis to the already existing
traditional knowledge about the benets of the plant. This will accelerate the
acceptability of chives in cuisine and food culturethereby creating new market. As
the medical research grows and roles and use of its various parts are deciphered it is
only a matter of time that commercial demand for industrial use will grow. That will
give huge impetus to commercial cultivation of chives. The traditional knowledge
backed by scientic evidence enlarges the economic uses and relevance of crop. Our
study presents a real world case of its potential to transform rural economy.
We can safely argue that research on chive has centered around its medicinal
and nutritional values, local cuisines, cultural and traditional signicance. Allium
Tuberosum until recently was considered to be wild and inferior allium species. It
has gained importance both economically and scientically during the last decade.
The hitherto existing studies on chive mainly concentrated on pharmaceutical
and medicinal values, identication of the diseases aecting the plant and few on
increasing its productivity.Studies that are of more immediate relevance for farmers
are those on using chive as intercropping plant in banana, tomato and strawberry
plantation as pest repellent and ways to enhance quality and yield.
So far chive as a plant has not attained its importance as a main source for income
generation of the farmers. The experience of chive cultivation by farmers in Manipur
COMMERCIAL CHIVE CULTIVATION IN MANIPUR
137
show that chive as a plant can be developed as a cash crop that can generate higher
level of income and bring about rural transformation in a short period of time. Despite
recognizing the economic importance of the crop, there has been no systematic study
on the socio-economic dynamics of the crop. The paper is an attempt in that direction
and the following section discusses how the commercial cultivation of chives is
carried out in Manipur.
Commercial cultivation of Chives: Methods and requirements
Chives farming is highly labour intensive and need care all year round. Farmers
with small landholding can practice it with minimal investment and attain desirable
economic returns in short time period. The cultivation and farming process starts with
preparation of raised bed. Then chemical fertilizers in trace amount are sprayed over
the bed and a bedding of rice husk and chicken poop manure is put. Then seedlings are
planted on those raised bed. Once planted farmers can harvest for 8 years after which
yield drops signicantly. Most farmers however plant new seedlings after every 4 or 5
years. On an average size eld of 0.62 acres (or .25 Hectares) there are approximately
40 to 60 raised bed depending on the size of the bed and one or two of those beds
are harvested daily. By the time all the beds are harvested the rst bed is ready to
be harvested again. The cycle continues throughout the year. During monsoon the
yield is the highest and each plant can be harvested twice every month while the
yield declines during winter.The growing bed needs to be fertilize continuously after
every harvest and chicken poop and rice husk (used are beddings in chicken farms)
is the preferred one. By now the supply chain is well organized and this manure gets
delivered at the farm. Earlier farmers had to go around looking for chicken poop
manure and that use to consume signicant time and aected production.
The Chive farming provides regular employment to villagers and are paid on
daily basis. For harvesting (cutting) chives women are engaged and depending on
amount harvested they earn anywhere between Rs. 50 to Rs. 100 for an hour or two
work in the evening.Many women work in multiple farms to increase their daily
earnings and the earning also depends on how fast and eciently they can work.
Teenagers (mostly school students) are engaged in binding the bundles of chives
and is paid at the rate of Rs.2 to Rs. 5 per bundle (depending on the size). Men are
engaged in tiling and preparation of bed and the daily rate takes from Rs. 350 to Rs.
400. Women are preferred for weeding and the wage rate is Rs. 250 per day. The
plants need to be watered every day and is mostly done by the respective farmers and
is one of the most important task as it can aect the yield signicantly.
Each raised bed gives an average yield of 50 bundles and daily harvest is counted
in number of beds harvested. In the monsoon season yield is high and demand is high
as it is consumed in religious festivals and cultural events that constitute its main
market. The average price per bundle ranges between Rs 50-60. During winter the
yield goes down signicantly but the farmers are compensated by increased in price
that goes all the way to Rs. 100-120 per bundle. As for marketing and sales some
traders and vendor comes to the farm to collect but most of the produce is taken to
ema market, top, kongpal etc. Accounting for all the cost an average farmer can earn
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
138
anywhere betweenRs. 1000-1600 daily. The more the farmers themselves perform
the daily harvest the higher is the daily net income.
The fact that chives cultivation can be carried out in small farms with basic tools
and equipment, low initial investment requirement and short gestation period before
farmer starts earning daily income is the USP of the commercial chive farming.The
commercial and farm cultivation of Chives that started about 18 years ago have
been a boon in the economic upliftment of the farmers in particular and rural folks
in general as observed in the villages mentioned earlier. The following section looks
at the socio-economic transformation that commercial chive cultivation has ushered
in these villages.
Chives cultivation and rural transformation
For our research, eld based surveys on a wide range of variables (economic, social
and environmental) that caters to specic stakeholders were carried out. These
includes demographics and household characteristics, work and income (average
income, major source, secondary occupation, wage rate, working hour, yield, market
price, eect of the pandemic on these variables); assets (equipment, land holding
pattern, farm size); social safety nets (accessibility, types, nature); Financial health
(access to credit, indebtedness).
The commercial chive cultivable ensures stable and regular income to the farmers.
The labour intensive nature of the cultivation leads togeneration of direct employment
for women and children in the villages where it is commercially cultivated. This
regular source of income has raised the living standard of the villages. Over the years
it has generated numerous backward and forward linkages. The chive cultivation has
created a market for rice husk and chicken poop manure (which are by products of
rice mills and poultry and whose disposal was a major challenge). It has created new
opportunities in the service sector especially in the transportation sector.
The positive externality that transcends beyond stable and higher income into
intergenerational social and economic mobility, source of secure and stable income,
ensuring better education for children, job securities to local women and children,
generating additional income for poultry farmers, supply chain and larger ecological
and environmental impact. The experience of chive farming in Manipur bring about
an understanding that modernization and mechanization of agriculture might not be
the only way for addressing agrarian distress. If right crops and conducive condition
are available and explored even with minimal investment much can be achieved.
Recognizing the success of chives farmer and the potential it holds, the horticulture
department of the state is pushing to include it as one of the focus commodities among
the items being enlisted under Manipur Organic Mission Agency. The high return
farmer derives from chive farming has many positive outcomes for the concerned
farmer and villagers in general. There has been higher enrollment of students in
schools and given the terrible state of government schools, parents are sending
their children to private school despite higher fees being charged. The kids are also
introduced to work culture and earning for themselves as they can work for some
time after school in the chive eld. Even the villages and nearby hills have become
COMMERCIAL CHIVE CULTIVATION IN MANIPUR
139
greener as the farmers and villagers who get daily income can now access LPG for
cooking for which rewood were used earlier and was main reason for deforestation.
Farmers also supplement their income by growing other vegetables at the edges of
those raised bed like onions, garlic, mustard and other seasonal vegetables. Given that
it requires minimum equipment’s and skills it is an attractive and viable alternative for
supplementing farmers’ income. When the success of chive cultivation was starting
to get recognized pandemic have temporarily decimated the sector and created new
challenges. The following section summarizes the agony of the pandemic.
The Agony of the Pandemic
Despite its many merits there are many challenges that farmers encounter and
understanding it and nding solution is one of the driving motivation for the research.
One of the major issue is ownership of farm. The chive farmers currently pay four
times the rent of paddy cultivator for the cultivation in same plot size. So farmers
either buy it from other farmers that grows rice and give it to their owner or else they
cultivate rice in other eld just to pay the rent. To the landless farmers that engages in
chives cultivation it acts as signicant burden. Chives cultivation requires perennial
source of water and many farms do keep a small pond inside the farms and water is
drawn from nearby stream and river. It has the implication that proper irrigation is pre
requisite and that is the Achilles heel for large scale expansion. Hardly any farmers
have availed loan or agricultural benets from formal sectors and credit requirement
from time to time is served by private banks and local money lenders. This involves
higher rate of interest
Pandemic have also brought out certain challenges the sector faces. One is the
backward and forward linkages which over the year had established an equilibrium
was severely aected by pandemic which almost brought farming activities to
complete halt. The highly perishable nature of the product adds further challenges for
if suitable and commensurate market is not established; expansion of production may
adversely aect the sector. The religious and cultural activities, hotel and road side
eateries forms the major market for chives. The lockdown as a response to pandemic
completely wiped out the market for chives overnight. Despite partial opening up
of the economy the continued restrictions on gatherings means the chive cultivation
could not resume its normal activities. The labour intensive nature of the cultivation
and the perishable nature of the crop coupled with no market for the produce left the
farmers with no other option then to left the crops rot in the elds. The misinformation
and fear further aected the farmers for arbitrary restrictions were imposed by local
clubs and organizations despite the government giving relaxations for agricultural
activities.
The farmers are slowly picking up and recovering but the challenges are many
and pandemic have added to the uncertainties.
Conclusion
Chive farming, in addition to improving the economic conditions of concerned
farmers generates employment for the local women and children creating a sense
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
140
of work culture and renders nancial independence. The economic success has
indirectly resulted in higher enrolment of children into school, better accessibility to
basic amenities and improved forest cover in the surrounding hills. Transformation of
rural economy through chive farming –the process, factors, medium etc. need to be
researched uponto established that modernization and mechanization of agriculture
might not be the lone policy alternative for upliftment of farmers and rural economy.
If right crops and conducive condition are available and explored even with minimal
investment much can be achieved. This gets signicance in economically under
developed region of northeast India. Given the biodiversity and available skill set and
knowledge economic development in the region can be propelled by its agricultural
sector. The success of commercial chive farming is a pointer towards alternative and
eective policy action.
The chive cultivation has been the poster child of recent successes in agricultural
practices of the state of Manipur. The practice oers a practical solution to economic
growth and development of the state. For low income state with impoverished farmers
the picture is bright. However, the pandemic hastemporarily decimated the sector and
has been oneof the worst hit agricultural practices. However, within the last 20 months
the sector is responding in numerous ways and this research opens the possibility of
understanding the rural transformation process, their resilience, adaptability etc. This
will throw light on understanding larger agrarian challenges and oer alternatives.
The study has the potential to be molded as primer for future research work on
agrarian economy of the region in particular and developing society in general.
References
1. B. Alizadeh, S. D. Royandazagh K. M. Khawar and S. Özcan (2013). “Micro
propagation of Garlic Chives (Allium TuberosumRottl.ExSprang) using
Mesocotyl Axis”.Journal of Animal and Plant Sciences 23(2):543-549.
2. Corvaia-Bolívar María Carolina, González-Barrios Andrea Carolina,
Colmenárez-Rojas Arlyne Alexandra, Pulido-BarrerasSilvana Paola, Suárez-
Rodríguez Marian Andrea and Bonfante-Cabarcas Rafael Armando (2020).
“Allium tuberosum aqueous extract had curative eects on malignant melanoma
in C57BL/6 mice”. World Journal of Advanced Research and Reviews, 07(01),
007-017 Article DOI: 10.30574/wjarr.2020.7.1.0191.
3. Farha Sultana and M. Mohsin (2014).“Nutritional Screening of Allium
tuberosum from Western Himalayan Region of India”.International Journal of
Science and Research (IJSR).Volume 3 Issue 12.
4. Farha Sultana, M. Mohsin and A.N. Sah (2015).“In-vitro Antioxidant and
Antimicrobial Activity of Allium tuberosumRottler.exSpreng”. International
Journal of Advanced Research in Biological Sciences 2(12): 178–187.
5. Shengmin Sang, Shilong Mao, Aina Lao, Zhongliang Chen, and Chi-Tang Ho
(2001). “Four New Steroidal Saponins from the Seeds of Allium tuberosum”.
Journal of Agricultural and Food Chemistry, 49 (3), 1475-1478 DOI: 10.1021/
jf001062b.
COMMERCIAL CHIVE CULTIVATION IN MANIPUR
141
6. Hahn, S.J. and Takano, T (1986).“Studies on the Chinese chives (Allium
tuberosumRottler) and a wild type of Allium species in Korea”, Journal of The
Korean Society for Horticultural Science.
7. Hata, F.T., M.U. Ventura, M.G. Carvalho, A.L.A. Miguel, M.S.J. Souza
and M.A.C. Zawadneak (2016). “Intercropping garlic plants reduces
Tetranychusurticae in strawberry crop”. Experimental and Applied Acarology,
69: 311-321. DOI: https://doi.org/10.1007/s10493-016-0044-3.
8. Heeok Hong, Kai-Min Niu, Jun-Hyeong Lee, Sangbuem Cho, Sung-Gu Han
and Soo-Ki Kim (2016). “Characteristics of Chinese chives (Allium tuberosum)
fermented by Leuconostocmesenteroides”, Applied Biological and Chemistry
Journal 59(3):349–357.
9. Hu Guohuaa, Lu Yanhua, Mao Renganga, Wei Dongzhi, Ma Zhengzhi and
Zhang Huaa (2009).“Aphrodisiac Properties of Allium tuberosum seeds
extract”, Journal of Ethnopharmacology 122, 579–582.
10. Huang, Y.H., Z.C. Mao and B.Y. Xie (2016). “Chinese leek (Allium
tuberosumRottler ex Sprengel) reduced disease symptom caused by root-knot
nematode”. Journal of Integrative Agriculture, 15: 364-372. DOI: https://doi.
org/10.1016/ S2095-3119(15)61032-2.
142
EXISTING SCENARIO OF
AGRICULTURE SECTOR IN WOKHA
DISTRICT OF NAGALAND
T. ZANTHUNGO NGULLIE
Research Scholar, Department of Commerce, Nagaland University, Nagaland
P K DEKA
Professor, Department of Commerce, Nagaland University, Nagaland
ABSTRACT
Agriculture sector still plays a dominant role in food security and economic
development of a country. Growth and development of agriculture and allied sector
directly and indirectly aects the welfare of a society and rural prosperity. The
practice of agriculture also forms an important resource base for a number of agro-
based industries and agro-services that led to the development of towns and cities.
Human populations that exist today could not have evolved without the practice of
agriculture. Wokha district is known as “Land of Plenty” for its richness in mineral,
resources, fertile land and favorable climatic condition. More than 80 per cent of the
people depend on agriculture for their livelihood. Rice is the major food crop and
occupies 77 per cent of the total cultivable area. The paper discusses the existing
scenario of agriculture sector with a view to ascertain the prospects and challenges
of agriculture sector of Wokha district in the state of Nagaland.
Keywords: existing scenario, prospects, challenges, agriculture, Wokha
Introduction
Agriculture and allied sector continues to play a dominant role in the food security
and economic development of a country. The practice of agriculture has led to the
development of towns and cities as it provides important resource base for a number
of agro-based industries and agro-services. Human populations that exist today could
not have evolved without the practice of agriculture. Growth and development of
agriculture and allied sector also directly and indirectly aects the wellbeing of a
society and rural prosperity.
EXISTING SCENARIO OF AGRICULTURE SECTOR IN WOKHA DISTRICT OF NAGALAND
143
Wokha district in the state of Nagaland is the homeland of the Lotha (Nagas)
with an area of 1628 sq.km, accounting 9.82 per cent of the total geographical area
of the state and a population of 1, 66, 343 (2011 census). It is situated in the mid
western part of Nagaland State, adjacent to Golaghat and Jorhat districts of plain in
State of Assam. It is bounded by Mokokchung district in the North, Kohima district
in the South, Zunheboto district in the East and the State of the Assam in the West.
The topography of the district is more or less similar with that of other district in
the state. The district is divided into three broad mountain ranges- Wokha Range or
Upper Range, Sanis Range or Middle Range, and Bhandari Range or Lower Range.
The climate is warm in the lower plain areas, moderately warm in the middle and
upper region during summer but cold in winter. The annual rainfall varies from 200
cms to 250 cms and the type of soil is mostly comprises of alluvial soil. The district
is known as “Land of Plenty” for its richness in mineral, resources, fertile land and
favorable climatic condition. Agriculture and allied activities are the principal means
of occupation and livelihood residing in rural areas with more than 80 percent of the
people depending on agriculture sector. Rice is the major food crop and occupies 77
per cent of the total cultivable area. The total cultivable area of the district is 40, 400
ha out of the total geographical area of 1, 58, 200 ha. The total net sown area is 31,
700 ha and area sown more than once is 8, 700 ha with a cropping intensity of 130
per cent (Statistical Handbook of Nagaland, 2020). Major crops such as rice, maize,
millet, wheat, nagadal and beans are grown during Kharif season, and groundnut,
rapeseed, sugarcane, cotton, pea, rajmash (Kholar), jute are grown during Rabi
season. Horticultural crops grown in the district includes pineapple, orange, ginger,
mossambi, banana, guava, potato, yam, plum, cucumber, passion fruit and jack
fruit are abundant and commercially cultivated. Farmers in the district still follows
traditional method of cultivation- spade, hoe and small agriculture implements as the
topography of the district is mostly hilly terrain. Adoption of machineries such as
tractors, power tillers, bullocks or bualo drawn plough are seen in the lower range
of the district- plains of Merapani, Doyang valley and Baghty valley for wet rice
cultivation.
Methodology
The study was conducted under Wokha district of the state of Nagaland. Respondent
(Household) representing from all the three ranges of the district i.e., Upper, Middle
and Lower ranges were collected for the study. The data relating to the study were
collected from both primary and secondary sources. The primary data were collected
through randomly selected cultivators (household) representing all the three ranges of
the district by framing a structured questionnaire. The secondary data were collected
from published reports by the Department of Agriculture Government of Nagaland,
Statistical Handbooks of Nagaland, Nagaland Basic Facts, NEDFi Databank, circulars,
and journals. Altogether a sample of 150 respondents i.e., 50 respondents representing
lower ranger, 50 respondents from the middle range and 50 respondents from the
upper range were surveyed. The data so collected were analyzed and interpreted
theoretically to draw the inferences.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
144
Table No. 1: Trend in area, production and productivity in Wokha district
Principal
Crops
Factors Nagaland Wokha
2015-16
2016-17
2017-18
2018-19
2019-20
2015-16
2016-17
2017-18
2018-19
2019-20
Cereal A 285340 291290 296800 299380 301970 26100 26870 27330 27840 28040
P 633790 661230 681050 691860 702090 56120 59180 60870 62580 63418
Y 2. 22 2. 27 2. 30 2. 31 2. 33 2. 15 2. 20 2. 23 2. 25 2. 26
Pulses A 37490 38650 39730 40030 40310 2770 2880 3000 3050 3069
P 43110 44510 46060 46400 46780 3130 3280 3440 3470 3500
Y 1. 15 1. 15 1. 16 1. 16 1. 16 1. 13 1. 14 1. 15 1. 14 1. 14
Food Grain A 322830 329940 336530 339410 342280 28870 29750 30330 30890 31109
P 676900 705740 727110 738260 748870 59250 62460 64310 66050 66918
Y 2. 10 2. 14 2. 16 2. 18 2. 19 2. 05 2. 10 2. 12 2. 14 2. 15
Oil seeds A 67870 68080 68400 68690 68950 5860 5860 5900 5940 5965
P 70020 70390 70730 71000 71300 5650 5710 5780 5800 5827
Y 1. 03 1. 03 1. 03 1. 03 1. 03 0. 96 0. 97 0. 98 0. 98 0. 98
Commercial
crops
A 37450 38120 38480 42980 43756 3220 3290 3320 3960 4087
P 448400 457230 461690 481680 486674 42630 43420 43790 45610 46220
Y 11. 97 11. 99 12 11. 21 11. 12 13. 24 13. 20 13. 20 11. 52 11. 31
Total A 428150 436140 443410 451080 454986 37950 38900 39550 40790 41161
P 1195320 1233360 1259530 1290940 1306844 107530 111590 113880 117460 118965
Y 2. 80 2. 83 2. 84 2. 86 2. 87 2. 83 2. 87 2. 88 2. 88 2. 89
Source: Statistical Handbook of Nagaland, (A= Area in hectare, P= Production in metric tonnes (mt), Y= Yield per hectare)
EXISTING SCENARIO OF AGRICULTURE SECTOR IN WOKHA DISTRICT OF NAGALAND
145
The area under principal crops cultivation has witnessed an increasing trend
over the last 5 (ve) years in the state as well as in Wokha district. The total area
under the cultivation of principal crop in the district has increased from 107.53 ha
in 2015-16 to 118.97 ha in 2019-20. Similarly, production of principal crops in the
state has been increasing since the past ve (5) years from 1195.32 metric tonnes
(mt) in 2015-16 to 1306.84 mt in the year 2019-20. The production of principal
crops in the district has also increased from 107.53 mt in 2015-16 to 118.97 mt in
2019-20. The average production of principal crops in the district was 113.86 mt
(9.05% of the state average production) as compared to the state average production
of 1257.20 mt. The area under food grain cultivation in the district was 28.90 ha in
2015-16 which has increased to 31.11 ha in 2019-20. Similarly, production of food
grain has also increased from 59.26 mt to 66.92 mt during the same period. However
the productivity of principal crops in the state (2.80 to 2.87 per ha) as well as the
district (2.83 to 2.89 per ha) during the same period shows a stagnant in growth rate.
Therefore, there is a need to improve productivity rate by taking up measure such as
adoption of modern technology, pest control, improved seeds and fertilizers, scientic
rotation of crops according to agro climatic conditions.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
146
Table No.2: Area & Production of major vegetables in Wokha district
Principal
Crops
Factors Nagaland Wokha
2014-15 2015-16 2016-17 2017-18 *2018-19 2014-15 2015-16 2016-17 2017-18 *2018-19
Sweet
Potato
A 1590 1422 960 1016 993 165 162 160 113 113
P 23982 21667 14106 11023 10682 2395 2355 2320 1725 1725
Y 15. 10 15. 24 14. 70 10. 90 10. 76 14. 52 14. 54 14. 50 15. 27 15. 27
Cabbage A 8198 7909 7975 7136 6942 773 769 769 574 574
P 163977 149462 150162 121620 118652 15128 15150 15150 11355 11355
Y 20. 00 18. 90 18. 83 17. 04 17. 10 19. 60 19. 70 19. 70 19. 80 19. 80
Brinjal A 445 458 463 448 436 50 51 51 38 38
P 3610 3713 3696 3541 3522 400 397 398 285 285
Y 8. 11 8. 11 7. 99 7. 90 8. 10 8. 00 7. 78 7. 63 7. 50 7. 50
Chilly (Red&
Green)
A 5539 5877 5884 6328 6170 303 675 675 510 499
P 42726 43496 43537 36533 35585 4997 4980 4981 3778 3778
Y 7. 71 7. 40 7. 40 5. 77 5. 77 16. 50 7. 38 7. 38 7. 41 7. 57
Peas A 1604 1626 1658 1571 1532 129 134 135 105 105
P 9618 9853 10254 9506 9116 808 845 842 630 630
Y 6. 00 6. 06 6. 19 6. 05 5. 95 6. 26 6. 31 6. 24 6. 00 6. 00
EXISTING SCENARIO OF AGRICULTURE SECTOR IN WOKHA DISTRICT OF NAGALAND
147
Beans A 2330 2393 2426 2295 2318 261 260 260 203 203
P 3160 19285 19866 17730 17700 1916 1872 1878 1403 1403
Y 1. 36 8. 06 8. 19 7. 73 7. 64 7. 34 7. 20 7. 22 6. 91 6. 91
Tomato A 2850 3016 3080 2817 2742 262 273 273 206 206
P 20748 21698 22061 19975 19696 1879 1948 1949 1463 1463
Y 7. 28 7. 19 7. 16 7. 09 7. 18 7. 17 7. 14 7. 14 7. 10 7. 10
Ginger A 3661 4819 4862 4811 4749 278 310 310 350 350
P 54423 48076 43605 36483 35630 4850 5115 5118 3122 3122
Y 14. 87 9. 98 8. 97 7. 58 7. 50 17. 45 16. 50 16. 51 8. 92 8. 92
Leafy
vegetable
A 5312 5334 4461 4057 3962 537 535 535 398 398
P 42553 77429 33940 26196 25911 4282 4234 4234 3165 3165
Y 8. 01 14. 52 7. 61 6. 46 6. 54 7. 97 7. 91 7. 91 7. 95 7. 95
Pumpkin A 553 561 568 544 536 74 68 68 49 49
P 5390 5741 5806 7107 7026 790 738 738 540 540
Y 9. 75 10. 23 10. 22 13. 06 13. 11 10. 68 10. 85 10. 85 11. 02 11. 02
Total A32082 33415 32337 31023 30380 2832 3237 3236 2546 2535
P370187 400420 347033 289714 283520 37445 37634 37608 27466 27466
Y98. 19 105. 69 97. 26 89. 58 89. 65 115. 49 105. 31 105. 08 97. 88 98. 04
*Final Estimate
Source: Statistical Handbook of Nagaland, (A= Area in Hectare, P= Production in metric tonnes (mt), Y= Yield per hectare)
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
148
The area under the cultivation of major vegetables in the state as well as the
district has witnessed a declining trend from 32.10 ha to 30.40 ha and 2.83 ha to 2.54
ha respectively from the year 2014-15 to 2018-19. Similarly, production of major
vegetables in the both the state and the district reduced from 370.20 metric tonnes
(mt) to 283.52 mt and 37.45 mt to 27.50 mt respectively during the same period. This
is due to the decline in the productivity in both the state (98.19 to 89.65) and the
district (115.49 to 98.04) during the same period. The average production (per year)
of the district was 33.52 mt as compared to the state average production of 338.18 mt.
Findings
The primary system of cultivation in the district is jhum method of cultivation with
95% of the respondent uses traditional method of cultivation and only 24% of the
respondent attended training relating to the practice of agriculture.
1. The study shows that women in the age group of fty or more occupy a dominant
role in agricultural activities with predominance of small farmers.
2. It is also found that crop rotation is widely practice however with rare use of
High Yielding Variety Seeds (HYVS) and fertilizers in the eld.
3. It is also observed that agriculture production in the district is not demand
oriented. Framers produce on a small scale and the surplus being sold directly to
the consumers in the village roads and on the state highways.
4. It is also found that the number of participation of youth in agricultural activities
in the district is very few. A vast range of scopes exist in this sector which await
exploration by youth as they have the desired innovativeness and creativity
needed for reshaping agriculture (Sukanya Som et al., 2018).
5. It is also seen that there is no organised and regulated marketing system for
marketing the agricultural produces.
6. The study revealed that lack of nance, absence of storage and processing
facilities, problem of transportation, post harvest losses are the common
problems of the farmers in the district.
7. Majority of the respondents in the study area appears to be unaware of agriculture
credit facilities and depends on indigenous money lenders or nanced by
themselves.
Conclusion
The growth and development agriculture sector over the years has not witnessed a
signicant change. Although the production and productivity of principal crops in
the district has been increasing during the past ve years it is at a very slow pace
(table 1.1). Similarly, production and productivity of major vegetables in the district
show a declining trend over the past ve years (table 1.2). The practice of jhum
cultivation, traditional method of cultivation, predominance of small farmers, hilly
terrains, non application of HYV seeds, rare or no use of fertilizers and pesticides
results in the poor production and productivity of crops in the district. There are also
EXISTING SCENARIO OF AGRICULTURE SECTOR IN WOKHA DISTRICT OF NAGALAND
149
various problems in the marketing of agriculture produces in the district. Most of
the agriculture products are non-durable and with non existence of agro-based units,
absence of organized and regulated marketing facility, lack of storing facility in the
villages and lack of nance makes it dicult for the farmers to dispose their produce.
Thus, co-operative farming and contract farming are to be encouraged in the district
as it will not only bring the farmers under an umbrella but also will encourage large
scale cultivation and also strengthens them to make eective agricultural marketing.
On the basis of availability of raw material, labor and other support mechanism there
is a scope for agro-based industries – potato and banana chips processing units, juices
(orange, plum, pineapple, and passion fruits) and packing units, food processing
units etc. There is also an urgent need for awareness and delivery of credit and other
assistance to the right person at the right time for the development of agriculture in
the district. In order to bring fruits of labor to the farmers, the overall environment
prevailing in the agriculture sector in the district needs to be improved.
References
1. Annual Administrative Reports, Department of Agriculture, Government of
Nagaland.
2. Deka, P. K., and Sarmah, D. (2012). Constraints and prospects of agricultural
marketing in North-east India. International Journal of Commerce and Business
Management, Vol.5(2): 145-151.
3. J, Hiralal. (2016). Analysis of foodgrains production trends in ve year plans.
Rashtriya Krishi, Vol. 11 (2), Dec. e ISSN–2321–7987
4. Raj, R. (2018). Problems and Prospects of Agricultural Marketing in India: An
Overview, International Journal of Scientic research in Science, Engineering
and Technology. Vol. 4(1): 810-816, Print ISSN: 2395-1990, Online ISSN:
2394-4099.
5. Som, S., Burman, R. R., Sharma, P. J., Padaria, R. N., Paul, S., & Singh, A.
K. (September-December, 2018). Attracting and retaining youth in Agriculture:
Challenges and Prospects, Journal of Community Mobilization and Sustainable
Development Vol.13(3), 385-395.
150
PERFORMANCE OF AGRICULTURE
SECTOR IN INDIA
G. RAVICHANDIRAN
Ph.D. Research Scholar, Department of Commerce
Periyar E.V.R. College (Autonomous), Tiruchirappalli
ABSTRACT
The signicance of Indian agriculture is meeting food demand of more than 130 crore
people in the country and also contributing export of certain agricultural products
with these aspects, the present paper made an attempt to discuss export and import of
agricultural commodities in India during the study period.Indian agricultural is labour
intensive which using limited machinery for cultivation cultivatable land per former
is also very limited which is not suitable for mass cultivation or mechanization of
agriculture.with these aspects, the present paper made an attempt to discuss export
and import of agricultural commodities in India during the study period.
Keywords: Agriculture sector, Export, Import, Agricultural Commodities, GDP.
Introduction
India is one of the agricultural consist country in the world which constitute around
60% of the population are directly involved in agricultural and allied activities. Indian
agricultural sector is conventional manner with traditional cultivation process and
natural irrigation systems. Since India is agriculture country, its contribution to GDP
is around 20 per cent which shows that Indian agricultural is mostly on self suitable
aspects and not in commercial aspects. Moreover, Indian agricultural is labour
intensive which using limited machinery for cultivation cultivatable land per former
is also very limited which is not suitable for mass cultivation or mechanization of
agriculture. India is anticipated to achieve the determined goal of doubling farm
income by 2022. The agriculture sector in India is expected to generate better impetus
in the next few years due to increased investment in agricultural infrastructure such
as irrigation facilities, warehousing and cold storage. The growing use of genetically
modied crops will likely improve the yield for Indian farmers. India is expected to
be self-sucient in pulses in the coming few years due to concerted eort of scientists
PERFORMANCE OF AGRICULTURE SECTOR IN INDIA
151
to get early maturing varieties of pulses and the increase in minimum support price.
Export of Agriculture and allied commodities during April 2020 - February 2021
were Rs. 2.74 lakh crore as compared to Rs. 2.31 crore in the same period last year
indicating an increase of 18.49 per cent. During April-December 2020, the export
of Basmati Rice was $2, 947 mn against $2, 936 mn reported during same period in
the previous year. Major destination for the Basmati rice exports from India is to the
countries including Iran, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, European
Countries etc.The signicance of Indian agriculture is meeting food demand of more
than 130 crore people in the country and also contributing export of certain agricultural
products. with these aspects, the present paper made an attempt to discuss export and
import of agricultural commodities in India during the study period.
Review of Literature
Sheeba.J., &Reena.R. (2019).Revealed that Agriculture plays a signicant role in
Indian economy. Indian Agricultural export and import have undergone foremost
change in this modern era.
Anil Bhuimali., & Debasish Chakraborty. (2018).Concluded that Agriculture
was included under WTO through AOA negotiation in 1995. Today around 17% of
India’s GDP is from agricultural sector and 12% of total export earning which is
substantial amount to have a huge impact on nation’s economy if any change occurs
in the world economy.
Suresh.A., &Mathur.V.C. (2016).Mentioned that Indian agricultural export has
undergone signicant changes during recent times. The Indian agricultural export
scenario has witnessed during the past decade and the prospects for further boosting
the agricultural export.
Elumalai Kannan. (2011). Among foodgrains, the area planted to coarse cereals that
are generally cultivated in dry regions declined by 13.3 percent between triennium
ending (TE) 1970-1971 and TE 2007-2008.
Paramasivan.C., &Pasupathi.R. (2017).Concluded that Agriculture is the primary
occupation and the major economic factor of India. It provides more number of
employment opportunities and business strategies to the society.
Kumareswaran.T., HP Singh, & et al. (2019). Coee is most predominantly
export oriented commodity, more than 65 per cent. Coee industry earns a foreign
exchange to the tune of about Rs.4000 crores.
Jitender Kumar Bhatia., Mehta.V.P, & et al. (2021).The international trade scenario
and related shifts in India’s foreign trade policy have had far-reaching consequences
for India’s general agricultural sector and, in particular, for agricultural exports.
Kumareswaran.T., &Jolia.P. (2019). Agriculture plays a vital role in the economic
growth and development of the county. Agriculture contributes about 16 per cent of
total GDP of India and about 12 per cent of total exports.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
152
ParamalakshmiDevi.E. (2015). Emerging world demand for Indian agricultural
commodities oers great opportunity and Indian agricultural exports have increased
manifolds. The article study explores the performance of India’s agricultural exports
for the time period 1990-91 to 2009-2010, by analyzing Magnitude, Direction and
Composition.
Table No. 1: India’s Exports of Top-10 Agricultural Commodities
(Value in Rs. Crores, Quantity in ‘000’ Tonnes)
Sl. No Commodity 2016-17 2020-21 (Upto Nov-20)
Qty Value Qty Value
1 Rice –Basmoti 3985. 2 21512. 9 3047. 5 20026. 7
2 Rice(Other Than
Basmoti)
6770. 8 16929. 9 7025. 1 19779. 8
3 Spices 1014. 5 19111. 3 1021. 7 19093. 8
4 Buffalo Meat 1323. 6 26161. 4 705. 2 15489. 2
5 Sugar 2544. 0 8659. 5 4569. 8 12121. 4
6 Cotton Raw Incld.
Waste
996. 1 10907. 3 597. 3 6085. 5
7 Oil Meals 2632. 3 5410. 1 2190. 9 5241. 6
8 Castor Oil 599. 2 4521. 5 485. 7 4367. 7
9 Fresh Vegetables 3404. 1 5790. 7 1772. 7 3826. 7
10 Misc Processed Items 0. 0 3053. 8 0. 0 3769. 3
Total Agri & Allied Exports 226651. 9 - 187874. 4 -
Source: Department of Commerce, Government of India
Table No- 1 indicate that India’s Export of top 10 agriculture commodities,
Basmati rice in2020-21 amounted to Export of 3047.5 thousands tonnes with the
value of Rs.20026.7 Crore, 3985.2 thousands tonnes with the value of Rs. 21512.9
Crore in 2016-17. Rice (OtherThan Basmoti)in2020-21 amounted to Export of 7025.1
thousands tonnes with the value of Rs.19779.8Crore, 6770.8 thousands tonnes with the
value of Rs. 16929.9Crore in 2016-17.Rice (Other Than Basmoti) in2020-21 amounted
to Export of 7025.1 thousands tonnes with the value of Rs. 19779.8 Crore, 6770.8
thousands tonnes with the value of Rs. 16929.9 Crore in 2016-17.Spices in2020-21
amounted to Export of 1021.7 thousands tonnes with the value of Rs. 19093.8Crore,
1014.5 thousands tonnes with the value of Rs. 19111.3Crore in 2016-17.Bualo
Meat in2020-21 amounted to Export of 705.2 thousands tonnes with the value of Rs.
15489.2Crore, 1323.6 thousands tonnes with the value of Rs. 26161.4Crore in 2016-
17.Sugar in2020-21 amounted to Export of 4569.8 thousands tonnes with the value
of Rs. 12121.4 Crore, 2544.0 thousands tonnes with the value of Rs. 8659.5Crore in
2016-17.Cotton Raw Incld. Waste in2020-21 amounted to Export of 597.3 thousands
PERFORMANCE OF AGRICULTURE SECTOR IN INDIA
153
tonnes with the value of Rs. 6085.5Crore, 996.1 thousands tonnes with the value of
Rs. 10907.3Crore in 2016-17.Oil Meals in2020-21 amounted to Export of 2190.9
thousands tonnes with the value of Rs. 5241.6Crore, 2632.3 thousands tonnes with the
value of Rs. 5410.1Crore in 2016-17.Castor Oil in2020-21 amounted to Export of 485.7
thousands tonnes with the value of Rs. 4367.7Crore, 599.2 thousands tonnes with the
value of Rs. 4521.5Crore in 2016-17.Fresh Vegetables in 2020-21 amounted to Export
of 1772.7 thousands tonnes with the value of Rs. 3826.7Crore, 3404.1 thousands
tonnes with the value of Rs. 5790.7Crore in 2016-17.Misc Processed Items in 2020-21
amounted to Export of 0.0 thousands tonnes with the value of Rs. 3769.3Crore, 0.0
thousands tonnes with the value of Rs. 3053.8Crore in 2016-17. On the whole, Total
Agri & Allied Exports in 2020-21 amounted to Export of 187874.4 thousands tonnes,
226651.9 thousands tonnes in 2016-17.
Table No. 2: India’s Imports of Top-10 Agricultural Commodities
(Value in Rs. Crores, Quantity in ‘000’ Tonnes)
Sl. No Commodity 2016-17 2020-21 (Upto
Nov-20)
Qty Value Qty Value
1 Vegetable Oils 14009. 9 73047. 7 9272. 6 50517. 0
2 Fresh Fruits 1040. 2 11241. 0 637. 3 9471. 4
3 Pulses 6609. 0 28523. 9 1532. 3 7148. 4
4 Cashew 774. 3 9027. 1 668. 8 5898. 8
5 Spices 240. 4 5757. 8 218. 3 4952. 0
6 Sugar 2146. 2 6868. 6 1507. 3 3530. 5
7 Alcoholic Beverages - 3581. 1 0. 0 2551. 1
8 Cotton RawIncld. Waste 498. 7 6337. 4 143. 1 1705. 4
9 Other OilSeeds 117. 2 394. 8 353. 3 1538. 2
10 Misc ProcessedItems - 2116. 2 0. 0 1304. 1
Total Agri & Allied Imports - 164680. 6 - 97267. 7
Source: Department of Commerce, Government of India
Table No- 2 indicate that India’s Import of top 10 agriculture commodities,
Vegetable Oils in 2020-21 amounted to Import of 9272.6 thousands tonnes with
the value of Rs.50517.0Crore, 14009.9 thousands tonnes with the value of Rs.
73047.7Crore in 2016-17.Fresh Fruits in 2020-21 amounted to Import of 637.3
thousands tonnes with the value of Rs. 9471.4Crore, 1040.2 thousands tonnes with
the value of Rs. 11241.0Crore in 2016-17.Pulses in 2020-21 amounted to Import of
1532.3 thousands tonnes with the value of Rs. 7148.4Crore, 6609.0 thousands tonnes
with the value of Rs. 28523.9Crore in 2016-17.Cashew in 2020-21 amounted to
Import of 668.8 thousands tonnes with the value of Rs. 5898.8Crore, 774.3 thousands
tonnes with the value of Rs. 9027.1Crore in 2016-17.Spices in 2020-21 amounted to
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
154
Import of 218.3 thousands tonnes with the value of Rs. 4952.0Crore, 240.4 thousands
tonnes with the value of Rs. 5757.8Crore in 2016-17.Sugarin 2020-21 amounted
to Import of 1507.3thousands tonnes with the value of Rs. 3530.5Crore, 2146.2
thousands tonnes with the value of Rs. 6868.6Crore in 2016-17.Alcoholic Beverages
in 2020-21 amounted to Import of the value of Rs. 2551.1 Crore, the value of Rs.
3581.1Crore in 2016-17.Cotton Raw Incld. Waste in 2020-21 amounted to Import of
143.1 thousands tonnes with the value of Rs. 1705.4Crore, 498.7 thousands tonnes
with the value of Rs. 6337.4Crore in 2016-17.Other Oil Seeds in 2020-21 amounted to
Import of 353.3 thousands tonnes with the value of Rs. 1538.2Crore, 117.2 thousands
tonnes with the value of Rs. 394.8Crore in 2016-17.Misc Processed Items in 2020-21
amounted to Import of the value of Rs. 1304.1Crore, the value of Rs. 2116.2Crore in
2016-17.On the whole, Total Agri & Allied Exports in 2020-21 amounted to Import
of 97267.7thousands tonnes, 164680.6 thousands tonnes in 2016-17.
Table No. 3: FDI Inflows in the AgricultureSector in India
Sl. No Year Amount of FDI Inflows
(In Rs. Crore) (% Increase)
1 2012-13 1392 60. 70
2 2013-14 845 94. 20
3 2014-15 796 84. 54
4 2015-16 673 91. 82
5 2016-17 618 75. 27
6 2017-18 821. 3 80. 87
7 2018-19 664. 7 63. 84
8 2019-20 1040. 64 69. 24
9 2020-21 (Apr-Sept) 1502. 72 92. 67
Source: Department for Promotion of Industry and Internal Trade (DPIIT)
Table No – 3, in the year 2012-13, FDI Inows in the Agriculture Sector in India
amounted to Rs.1392 crore and it Increased to Rs.1502.72 crore in 2020-21, but
during the year 2013-14 to 2019-20, it was very low in FDI inows in Agriculture
Sector.
Conclusion
India is known for conventional agricultural consists country in the world with more
than half of the population directly involved for livelihood as well as economic
activities.Agriculture is the main source of livelihood for about 58 per cent of India’s
population. Gross Value Added by agriculture, forestry, and shing was estimated
at Rs. 19.48 lakh crore in the nancial year 2020. Share of agriculture and allied
sectors in gross value added of India at current prices stood at 17.8 58 per cent in the
PERFORMANCE OF AGRICULTURE SECTOR IN INDIA
155
nancial year 2020. Consumer spending in India will return to growth in 2021 post the
pandemic-led contraction, expanding by as much as 6.658 per cent. Performance of
agriculture sector in export leads to increase foreign exchange and help to attract more
foreign investment. Volume of tea exported during April - January 2021 amounted
to 172.46 million kg, with CIS being the top exported Indian tea at 42.64 mkg. UAE
was the top importer of India tea during the same period at 10.92 mkg of imports.
Hence, it is concluded that performance of agriculture sector indicates that the growth
of economy in the country with consistent development in all aspects. Agriculture
sector is not only a primary sector but also a preliminary sector to all core and allied
sector in the country.
References
1. Anil Bhuimali., & Debasish Chakraborty. (2018). Scenario of Indian
Agricultural Export of Major Agricultural Commodities in the Post WTO
Regime. International Journal of Applied Science and Engineering, 6(1), 49-63.
2. C, PARAMASIVAN & Subbiah, Rajaram. (2015). INTERNATIONAL
JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH AN
OVERVIEW OF MICRO INSURANCE INDUSTRIES IN INDIA.
3. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
4. Elumalai Kannan. (2011). Trends in India’s Agricultural Growth and Its
Determinants. Asian Journal of Agriculture and Development, 8(2).
5. Jitender Kumar Bhatia., Mehta.V.P, & et al. (2021). Export-Import Performance
of Major Agricultural Commodities in India. Economic Aairs, 66(1), 117-126.
6. Kumareswaran.T, HP Singh, & et al. (2019). Production and export performance
of coee in India. Journal of Pharmacognosy and Phytochemistry, 8(2),
1619-1623.
7. Kumareswaran.T., &Jolia.P. (2019). Export scenario of Indian agriculture: A
review. Journal of Pharmacognosy and Phytochemistry 8(1), 2653-2656.
8. Paramalakshmi Devi. E. (2015). India’s Foreign Trade and Agriculture Exports.
Shanlax International Journal of Economics, 3(3).
9. Paramasivan, C., & Selladurai, M. (2017). Technopreneurship education: Teach
and train the youths. Asian Journal of Management, 8(4), 1173-1176.
10. Paramasivan.C., &Pasupathi.R. (2017). A study on growth and performance
of Indian agro based exports. International Journal of Humanities and Social
Science Research, 3(9), 1-5.
11. Priyadharshini, J., & Muthusamy, S. (2016). Green Marketing: Solar Energy
Opportunities and Challenges in India. International Journal of Research &
Business Innovation, 4(1).
12. S.Rajaram and J.Robert Edwin Chester (2020) Organisational Prole of
Women owned Micro Enterprises in Kaniyakumari District., Vol.40., Issue.18.
pp.2057-2059
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
156
13. Selladurai, M., & Priyadharshini, J. (2015). Opportunities and Challenges of
Rural Entrepreneurship in India. International Journal of Multidisciplinary
Educational Research, 4(1), 74-81.
14. Sheeba.J., &Reena.R. (2019). Export and Import Performance of Agriculture
in India. International Journal of Innovative Technology and Exploring
Engineering, 8(12).
15. Subbiah, Rajaram & Professor, . (2020). ORGANISATIONAL PROFILE
OF WOMEN OWNED MICRO ENTERPRISES IN KANIYAKUMARI
DISTRICT. 10.13140/RG.2.2.28424.57608.
16. Subbiah, Rajaram. (2020). ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT.
2394-3114.
17. Suresh.A., & Mathur. V C. (2016). Export of agricultural commodities from
India: Performance and prospects. Indian Journal of Agricultural Sciences,
86(7), 876–83.
157
AGRICULTURE CREDIT SANCTIONED
BY FINANCIAL INSTITUTIONS IN
INDIA AND TAMIL NADU
M.SOUNDARYA
Ph.D Research Scholar
Dr. G.PARIMALARANI
Professor, Department of Banking Management, Alagappa University, Karaikudi.
ABSTRACT
Agriculture is a key sector of the Indian economy given its contribution to employment
and GDP. Agricultural credit plays a vital role in farm sector development and
facilitates the adoption of new technologies.Agriculture credit is one of the input
factors to the farmers. The research paper is mainly focuses on agency-wise share
of credit ow to the agricultural sector during the last ten years. Agricultural
credit disbursement continues to be dominated by commercial banks, followed by
co-operative banks and RRBs
Keywords: Agriculture credit, Employment, Farm sector
Introduction
Agricultural credit is one of the critical inputs and an eective means of rural
development in India, innovations in the agricultural credit market have gained
importance over the years (Shraddha, 2013). The banking system of a country is
an important pillar holding up the nancial system. The major role of banks is the
mobilization of deposits and disbursement of credit to various sectors of the economy.
Both nancial institutions and Non-banking nancial institutions were providing
agriculture credit to the farmers. A nancial institution refers to Commercial banks,
Regional Rural Banks and Co-operative banks. Credit is one of the important supply-
side factors which contribute to agriculture production. An ecient and eective
rural credit delivery system is imperative for providing timely adequate and equitable
access to credit for raising agricultural productivity and income (Reserve Bank of
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
158
India). Commercial banks, Co-operative banks and RRBs arethe main institutional
agency which provides nance to agriculture. After nationalization, it was made
mandatory for these banks to provide nance to agriculture under priority sector
lending. These banks undertook special programs of branch expansion and created a
network of banking services throughout the country and started nancing agriculture
on large scale. Commercial banks were nationalized during the year 1969. During
1970, commercial banks were started to provide agriculture credit to the farmers.
The Regional Rural Banks were started to provide agriculture credit during the year
1976. (Reserve Bank of India, 2021).Later the National Bank for Agriculture and
Rural Development (NABARD) came into existence in 1982, with the enactment
of the NABARD Act 1981, to promote agriculture and rural development. In 1966,
Co-operative banks were viewed as the main instrument for extending agricultural
credit. The All India Rural Credit Review Committee (1969) recommended the
adoption of a “Multi-Agency Approach” towards agriculture and rural credit.
Commercial banks were expected to complement the eorts of co-operatives to
enhance the quantum of credit in the rural economy.
Review of literature
Reserve Bank of India (2021) stated that the government of India xes the agricultural
credit target every year for commercial banks, Regional Rural Banks and co-operative
banks. During 2020-21, against the target of Rs.15 lakhs crores banks achieved 75.1
percent of the target as on December 31st2020, of which commercial banks, RRBs and
Co-operative banks achieved 78.6 percent, 74.2 percent and 59.3 percent respectively.
Samir Samantara (2020) examines thatInstitutional credit played a very
important role in the development of the agricultural sector. As a result of credit,
Indian agriculture developed over time andshowed all signs of resilience to natural
shocks like droughts and famines. It enabled the farmers to go for short-termcredit for
the purchase of inputs and other services and long-term credit for investmentpurposes.
Credit also played an important role by facilitating technological up-gradationand
commercialization of agriculture.
K.Murugan (2020), in the paper titled “Agricultural credit and banking sector
in Tamil Nadu”, the objective of the paper is to examine the agriculture credit and
banking sector in Tamil Nadu. The secondary data hadbeen collected from Trend
and Progress of Banking India, District Potential Credit Linkage Plans (PLPs), and
State Level Banker Committee (SLBC). The researcher concluded that in terms
of achievement, the percentage share of Coimbatore (5.63percent), Trichirappali
(5.50 percent), Villupuram (5.41 percent), Madurai(5.27 percent), Tirunelveli (5.12
percent) and Vellore (5.09 percent) arerecorded the highest share of achievements in
terms of agriculture credit inTamil Nadu.
Nakazi Florence et.al (2020), in their paper titled “Eect of Commercial Banks’
Agricultural Credit on Agricultural growth in Uganda”, results also pointed out that
agriculture production credit has a higher impact on agriculture GDP. The positive
eect of commercial banks’ agricultural credit to agricultural GDP, more allocation
of credit to the agricultural sector in Uganda. This can be achieved through lowering
AGRICULTURE CREDIT SANCTIONED BY FINANCIAL INSTITUTIONS
159
interest rates charged by commercial banks and increasing accessibility of commercial
bank loans by opening up branches in rural areas.
Dr.Narendra Kumar Batra et.al (2020) in his paper entitled “Present position
of Agricultural credit in India: An analysis of Institutional contribution in providing
credit to agriculture sector”, the main aim of his study is to analyze the relationship
between agriculture and Indian Economy. The researcher concluded that agriculture
is the key player in the development of the Indian Economy. It is one of the maximum
contributors to Indian GDP. According to his study, more than 50% of the Indian
population depends on the agricultural sector for their livelihood.In a developing
country like Indian, for developing the condition of agriculture a person needs sound
arrangements of creditgeneration. As most of the farmers of such countries are not
self-sucient to arrange funds for purchasing good quality seeds, for purchasing land,
and for installing high yielding machinery.
Objectives
The Main objective of the study is to analyze the agency wise distribution of credit
to agriculture in India and Tamil Nadu.
Research methodology
The research is purely based on secondary data. The data were collected from various
statistical reports such as Report on trend and progress of India, State level bankers
committee in Tamil Nadu. The study period were 2011 – 12 to 2020-21. The tools
used for the analysis is Mean, Compound Annual Growth rate and Trend analysis.
Data analysis and interpretation
Agriculture Advances sanctioned by the commercial Banks in
India and Tamil Nadu
Commercial banks play a major role in providing agriculture credit to the farmers.
The below table elucidates the total agriculture advances of commercial banks in
India and Tamil Nadu during 2011 -12 to 2020-21.
Agriculture Advances Sanctioned by the Commercial banks in India and
Tamil Nadu during 2011-12 to 2020-21
Year
End March
Agriculture
Advances In India
GR Agriculture
Advances in
Tamil Nadu
GR
2011-12 386542 - 78241 -
2012-13 432491 11. 88 98247 25. 5
2013-14 527506 21. 96 107667 9. 5
2014-15 604376 14. 57 120663 12. 07
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
160
2015-16 642954 6. 38 124624 3. 28
2016-17 799781 24. 3 135269 8. 54
2017-18 871080 8. 91 156781 15. 9
2018-19 949622 9. 01 174404 11. 2
2019-20 1061215 11. 75 190087 8. 99
2020-21 850543 -19. 8 242009 27. 31
Mean 712611 142799. 2
SD 227316. 27 48918. 36
CAGR 8. 21% 12. 76%
Trend Analysis
2021-22 1100764 - 228448 -
2022-23 1169074 6. 20 245493 7. 46
2023-24 1229345 5. 15 264675 7. 81
2024-25 1289957 4. 93 284227 7. 38
2025-26 1348524 4. 54 304598 7. 16
Source: Compiled from Agenda of SLBC meetings, Tamil Nadu from 2012 to 2020.
The above table shows that, there is an increasing trend in an quantum of
agricultural credit sanctioned by commercial banks in India. The total agriculture
credit has increased from Rs. 3, 86, 452 crores in 2011-12 to Rs. 10, 61, 215 crores in
2019-20. The year wise rate of agriculture advances under the study is 11.88 percent in
2012-13 as against -19.8 percent in 2020-21. The trend in the year- wise growth rate
were increased except 2015-16 and 2020-21. The highest growth rate has registered
in the year 2013-14 (21.96%). The trend analysis shows that there is upward trend
upcoming years 2021-26. The mean, Standard Deviation (SD) and Compound Annual
Growth Rate (CAGR) are 712611, 227316 and 8.21% per cent respectively during
2011 -12 to 2020-21.
There is a fabulous growth in the agriculture advances provided by commercial
banks in Tamil Nadu during the period of study. The total agriculture credit has
increased from Rs.78241 crores in 2011-12 to Rs.242009 crores in 2020-21. The
mean, Standard Deviation (SD)and Compound Annual Growth Rate (CAGR) are
142799, 48918 and 12.76% per cent respectively during 2012 to 2021.Therefore,
during the study period there is positive trend is observed in the agriculture credit
given by commercial banks. Hence, it is concluded that commercial banks provide
major share of agriculture advances in India as well as in Tamil Nadu.
Agriculture credit sanctioned by Regional Rural Bank
The below table elucidates the total agriculture advances of commercial banks in
India and Tamil Nadu during 2011 -12 to 2020-21.
AGRICULTURE CREDIT SANCTIONED BY FINANCIAL INSTITUTIONS
161
Agriculture Advances sanctioned by Regional Rural Bank in India and
Tamil Nadu
Year End
March
Agriculture
Advances In India
GR Agriculture Advances in
Tamil Nadu
GR
2011-12 75860 - 2154 -
2012-13 81456 7. 37 2663 23. 6
2013-14 82700 1. 52 3106 16. 6
2014-15 102500 227. 5 4289 38. 08
2015-16 119300 16. 39 4842 12. 89
2016-17 123200 3. 26 6160 27. 22
2017-18 141200 14. 61 7692 24. 84
2018-19 151300 7. 15 9685 25. 91
2019-20 162857 7. 63 10373 7. 10
2020-21 142603 -12. 4 12450 20. 02
Mean 118297. 6 6341. 4
SD 31428. 9 3568. 3
CAGR 6. 51% 19. 17%
Trend Analysis
2021-22 63848 - 12710 -
2022-23 90441 41. 6 14141 11. 2
2023-24 115963 28. 2 15576 10. 1
2024-25 139961 20. 6 16938 8. 74
2025-26 148162 5. 85 18329 8. 21
Source: Compiled from Agenda of SLBC meetings, Tamil Nadu from 2012 to 2020.
The above table shows that, there is an increasing trend in an quantum of
agricultural credit sanctioned by Regional Rural banks in India. The total agriculture
credit has increased from Rs.75860 crores in 2011-12 to Rs. 142603 crores in 2020-
21. The year wise rate of agriculture advances under the study is 7.37 percent in 2012-
13 as against -12.4 percent in 2020-21. The trend in the year- wise growth rate were
increased except 2020-21. The highest growth rate has registered in the year 2014-15
(227.5%). The trend analysis shows that there is upward trend upcoming years i.e
2021-26. The mean, Standard Deviation (SD) and Compound Annual Growth Rate
(CAGR) are 118297.6, 31428.9 and 6.51% per cent respectively during 2011 -12 to
2020-21.
There is a enormous growth in the agriculture advances provided by Regional
Rural banks in Tamil Nadu during the period of study. The total agriculture credit has
increased from Rs.2154 crores in 2011-12 to Rs.12450 crores in 2020-21. The mean,
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
162
Standard Deviation (SD)and Compound Annual Growth Rate (CAGR) are 6341,
3568 and 19.17% per cent respectively during 2012 to 2021.The highest growth rate
has registered in the year 2016-17 (27.2%).
Therefore, during the study period there is positive trend is observed in the
agriculture credit given by Regional Rural banks.
Agriculture Advances Sanctioned by the Co-operative banks in
India and Tamil Nadu during 2011-12 to 2020-21:
The below table elucidates the total agriculture advances of Co-operative banks in
India and Tamil Nadu during 2011 -12 to 2020-21.
Agriculture Advances Sanctioned by the Co-operative banks in India
and Tamil Nadu during 2011-12 to 2020-21
Year End
March
Agriculture Advances In
India GR
%
Agriculture
Advances in Tamil
Nadu
GR
%
2011-12 9855 - 3751. 64 -
2012-13 10550 7. 05 4828. 75 28. 7
2013-14 119900 13. 64 11553. 66 139. 2
2014-15 138500 15. 51 10873. 51 -5. 88
2015-16 153300 10. 68 7334. 67 -32. 5
2016-17 142800 -6. 84 5081. 42 -30. 7
2017-18 150300 5. 25 7008. 83 37. 9
2018-19 153900 2. 39 8983. 34 28. 1
2019-20 149694 -2. 73 10645. 95 18. 5
2020-21 133976 -10. 5 3378. 24 -68. 2
Mean 105486. 5 7344. 01
SD 65647. 4 3054. 3
CAGR 29. 81% -1. 04%
Trend Analysis
2021-22 192477 - 7699 -
2022-23 194578 1. 09 6884 -10. 5
2023-24 185529 -4. 65 5765 -16. 2
2024-25 189753 2. 27 5856 -14. 9
2025-26 196250 3. 42 6188 5. 6
Source: Compiled from Agenda of SLBC meetings, Tamil Nadu from 2012 to 2020
AGRICULTURE CREDIT SANCTIONED BY FINANCIAL INSTITUTIONS
163
The table shows that, there is an increasing trend in an quantum of agricultural
credit sanctioned by Co-operative banks in India. The total agriculture credit has
increased from Rs.9855 crores in 2011-12 to Rs.133976 crores in 2020-21. The year
wise growth rate of agriculture advances under the study is 7.05 percent in 2012-13
as against -10.5 percent in 2020-21. The highest growth rate has registered in the year
2014-15 (15.5%). The trend analysis shows that uctuating during the years 2021-26.
The mean, Standard Deviation (SD) and Compound Annual Growth Rate (CAGR)
are 105486.5, 65647.4 and 29.81% per cent respectively during 2011 -12 to 2020-21.
During the study period there is increasing growth in the agriculture advances
sanctioned by co-operative banks in Tamil Nadu. The total agriculture credit has
increased from Rs. 3751 crores in 2011-12 to Rs. 3378 crores in 2020-21. The mean,
Standard Deviation (SD) and Compound Annual Growth Rate (CAGR) are 734,
3054 and -1.04 per cent respectively during 2012 to 2021. The highest growth rate
has registered in the year 2013-14 (139.2%). Therefore, during the study period there
is positive trend is observed in the agriculture credit given by co-operative banks.
Findings
1. It is found that there is an increasing trend in an quantum of agricultural credit
sanctioned by commercial banks in India. The total agriculture credit has
increased from Rs. 3, 86, 452 crores in 2011-12 to Rs. 10, 61, 215 crores in
2019-20. There is a fabulous growth in the agriculture advances provided by
commercial banks in Tamil Nadu during the period of study. The total agriculture
credit has increased from Rs.78241 crores in 2011-12 to Rs.242009 crores in
2020-21.
2. It is observed that the there is an increasing trend in an quantum of agricultural
credit sanctioned by Regional Rural banks in India. The total agriculture credit
has increased from Rs.75860 crores in 2011-12 to Rs. 142603 crores in 2020-21.
There is a enormous growth in the agriculture advances provided by Regional
Rural banks in Tamil Nadu during the period of study. The total agriculture credit
has increased from Rs.2154 crores in 2011-12 to Rs.12450 crores in 2020-21.
3. It is found that there is an increasing trend in an quantum of agricultural credit
sanctioned by Co-operative banks in India. The total agriculture credit has
increased from Rs.9855 crores in 2011-12 to Rs.133976 crores in 2020-21. The
total agriculture credit has increased from Rs. 3751 crores in 2011-12 to Rs. 3378
crores in 2020-21 in Tamil Nadu.
Conclusion
The researcher concluded that the agriculture credit given by nancial institutions
in India and Tamil Nadu during the period from 2012 to 2021. In Tamil Nadu,
three nancial institutions play a major role in providing agriculture credit such as
commercial banks, Regional Rural Banks, and co-operative banks. Credit is a critical
input in achieving higher farm output. Institutional credit will help the farmers to
increase agricultural productivity. There is an increasing trend in the quantum of
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
164
agricultural credit provided by commercial 3banks in Tamil Nadu. It has increased
from Rs. 78421 Crores in 2011 to Rs. 2, 42, 009 Crores in 2020. Simultaneously,
there is an increasing trend in the quantum of agricultural credit provided by RRB
in Tamil Nadu. It has increased from Rs.2154 Crores in 2012 to Rs. 12450 Crores
in 2020 respectively. There is an increasing trend in the quantum of agricultural
credit provided by co-operative banks in Tamil Nadu. It has increased from Rs.
9855 crores in 2011-12 to Rs.133976 crores in 2020-21. Therefore, it is concluded
that the agriculture credit sanctioned by the scheduled commercial banks, RRBs and
co-operative banks in Tamil Nadu is appreciable in terms of loan amount, achievement
of targets and percentage increase to total advances.
References
1. Samir Samantara (2020)“ Recent trends in Agriculture credit in India”,
International Journal of Science and Research (IJSR), pp.2456-2460.
2. K. Murugan (2020), “Agricultural credit and banking sector in Tamil Nadu”,
Indian Journal of Applied Economics and Business, ARF India, Vol. 2 (2), pp.
157-176.
3. Nakazi Florence et.al (2020), “The Eect of Commercial Banks’ Agricultural
Credit on Agricultural growth in Uganda”, African Journal of Economic
Review, Vol.3(1).
4. Dr. Narendra Kumar Batra et.al (2020) “Present position of Agricultural
credit in India: An analysis of Institutional contribution in providing credit
to agriculture sector”, International Journal of Multi disciplinary Educational
Research, ISSN:2277-7881, Vol.10, pp 86-93.
5. Narendra. K and Maruteesh. K (2019), “A study on Impact of crop loan to
the Agriculture development with special to reference co-operative agriculture
and rural development bank”, International Journal of Advanced Research in
Management Volume 10 (1), pp. 8-33.
6. Dr.Ibrahim Cholakkal (2018), “Co-operative banks and agriculture credit
– An analysis”, ZENITH International Journal of Business economics and
Management Research, ISSN: 2249-8826, Vol.8, Jan (2018), pp. 1-8.
7. R.V. Suganya (2017), “A study on Agriculture credit by commercial banks in
Thiruvallur district”, International Journal of control theory and Applications”,
ISSN: 0974-5572, Vol.10, pp.7-11.
8. Upasana Mohapatra (2017)” Agriculture credit in India: An Overview”,
International Journal of Management”, ISSN: 2457:3248, Vol (3), pp.48-54.
9. Rajiben Solanki (2016), “Agricultural Finance by Commercial Banks in India:
A Case Study of Central Bank of India”, Abhinav National Monthly Refereed
Journal of Research in Commerce & Management, ISSN-2277-1166, Vol.5 (4),
pp. 1-7.
10. Selvaraj N, Balajikumar P (2015), “The Role of Commercial Banks in Providing
Agricultural Credit in Tamil Nadu (Extent and Factors Inuencing Investment)
– India: A View”; Business and Economics Journal, ISSN: 2151-6219, Vol.6(3)
pp.248-256.
AGRICULTURE CREDIT SANCTIONED BY FINANCIAL INSTITUTIONS
165
11. Subbiah, Rajaram. (2020). Analytical Study on Visible Balance of Payment in
India. 10.13140/RG.2.2.34021.01762.
12. Subbiah, Rajaram. (2017). EMPOWERING INDIAN ECONOMY THROUGH
GST IN INDIA.
13. C, PARAMASIVAN & Subbiah, Rajaram. (2016). MICRO INSURANCE -A
CONCEPTUAL ANALYSIS.
14. Subbiah, Rajaram. (2020). PROFILE OF MICRO INSURANCE PRODUCTS
- INDIVIDUAL V/S GROUP CATEGORIES.
15. C, PARAMASIVAN & Subbiah, Rajaram. (2016). MICRO INSURANCE
PORTFOLIO OF PUBLIC AND PRIVATE SECTOR INSURANCE
COMPANIES. 72-77.
16. C, PARAMASIVAN & Subbiah, Rajaram. (2015). JEEVAN MADHUR
MICRO INSURANCE IN SOUTH ZONE- A BIRDS EYE VIEW STUDY.
SELP Journal of Social Science. VI. 10-15.
17. Priyadharshini, J., & Selladurai, M. (2016). A study on high speed rails in India.
Int J Trend Res Dev, 3(3).
18. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study On Satisfaction Of
Tourists Visiting Yercaud Of Salem District. Asia Pacic Journal of Research In
Business Management, 4(3), 1.
166
THE EFFECTIVENESS OF ATMA
NIRBHAR BHARAT SCHEME ON
AGRICULTURAL SECTOR: FARMER
PERSPECTIVE
FEMY MONI
Assistant Professor, Department of Commerce
St. Aloysius College, Elthuruth, Thrissur
ABSTRACT
Among Various economic activities, agriculture stands as an outstanding source of
livelihood to more than half of the world population directly or indirectly (HaripriyaDutta
and debabrata Das 2017). The Indian agricultural sector accounts for 20.19% of
India’s GVA and employs 41.49 % of the country’s workforce in the agricultural
sector (2020). Prime Minister Narendra Modi Stressed on the signicance for the
country to be self-reliant in agriculture. The goal of self-suciency in agriculture is
to make a farmer productive as well as an entrepreneur. AtmaNirbharAbhiyan scheme
announced an economic package would play an important role in making India self-
reliant and that would benet farmers and tiny sectors. So this study focused on
the eectiveness of AtmaNirbhar Bharat Scheme on the agricultural sector: farmer
Perspective. Thus the study made an attempt to know the awareness of the scheme
among farmers in tiny sectors as well as to test its eectiveness on the agricultural
sector. The study was conducted among 120 farmers in Adat rural area which can be
selected by purposively to the researcher. The researcher concluded that most of the
rural farmers are beneted by this scheme but the actual fact that they are not aware
about the scheme that availed by them and also the implication of this scheme on
the development of rural agricultural sector. Thus the study suggests to give a proper
awareness regarding the various plans under AtmaNirbhar Bharat Abhiyan to the rural
farmers to get rid of them from the unexpected losses or events.
THE EFFECTIVENESS OF ATMA NIRBHAR BHARAT SCHEME ON AGRICULTURAL SECTOR
167
Introduction
Among Various economic activities, agriculture stands as an outstanding source of
livelihood to more than half of the world population directly or indirectly (HaripriyaDutta
and debabrata Das 2017). The Indian agricultural sector accounts for 20.19% of
India’s GVA and employs 41.49 % of the country’s workforce in the agricultural
sector (2020). Prime Minister Narendra Modi Stressed on the signicance for the
country to be self-reliant in agriculture. The goal of self-suciency in agriculture is
to make a farmer productive as well as an entrepreneur. AtmaNirbharAbhiyan scheme
announced an economic package would play an important role in making India self-
reliant and that would benet farmers and tiny sectors.
The self-sucient India slogan initiates ‘Atma Nirbhar Bharath Abhiyan’
popularized by prime minister of India Narendra Modi and Government of India
in relation to the economic vision and economic development in the country. The
main motto of this scheme is self-sustain and self- generation. This campaign started
in 2020 for ensuring covid 19 pandemic related economic packages to MSMEs,
agricultural sector etc. the major slogan initiated by the scheme is “Vocal for Local”
“Local for Global”.
Thus the study conned the eectiveness of this scheme to the agricultural
sector. Because government has announced an agriculture infrastructure fund of about
Rs 1.50 lakh crore under the AtmaNirbhar Bharat scheme to ensure infrastructure
development in communities to help farmers enhance their income.
Scope of the study
AtmaNirbharAbhiyan scheme announced an economic package would play an
important role in making India self-reliant and that would benet farmers and tiny
sectors. So this study focused on the eectiveness of AtmaNirbhar Bharat Scheme
on the agricultural sector: farmer Perspective. Thus the study made an attempt to
know the awareness of the scheme among farmers in tiny sectors as well as to test its
eectiveness on the agricultural sector. The ndings of the study provide valuable
information to the central governments and banks about the eectiveness of this
scheme.Also the people in academia are the beneciaries of the ndings of the study
.It serves as the source of literature to the people who intend to conduct a similar
research either in Thrissur district or elsewhere in the world.
Research methodology
The research design is descriptive and analytical in nature. The data were collected
from primary as well as secondary sources. The primary data were collected by
administering a schedule and conducting a survey in the Adat rural area. Secondary
data were collected from websites, Journals and magazines etc. The sample of the
study was selected by purposive sampling. The researcher opted for 120 samples.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
168
Literature Review
●“Atmanirbhar Bharat Abhiyan: An Analytical Review” was studied by
SmitaDubey and Harish kumarDubey (2020). The Atmanirbhar Bharat
Abhiyan programme is a long-term initiative. It is not only the government’s
responsibility, but also the responsibility of consumers to consume domestically
produced goods, because demand is the most important determinant of any
sector’s development. India is not only capable of producing basic goods, but
also of creating highly technical goods.
●KrishanBir Singh Singh (2020) researched the “Atmanirbhar Bharat Package
(A Self-Reliant India Movement) in Agricultural Development of Rural India.”
On a massive scale, the pandemic has wreaked havoc on the economy. Given
that the economy has been in lockdown mode for the previous two months, the
loss to GDP growth might be as high as a quarter. Migrant labour dislocation
and disturbance in domestic transit have all harmed agriculture, business units,
suppliers, and exporters.
●“Enabling Productive Agriculture for AtmaNirbhar Bharat” was researched by
Balwant Singh Mehta, Utpal K. De, and Arjun Kumar (2020). They claimed
that the government subsidized fertilizer, irrigation water, and electricity costs
in order to lower production costs and increase agricultural income. To boost
yields through better farming practices and timely availability of quality inputs,
the government oered a high yielding variety of seeds, chemical fertilizers, and
irrigation infrastructure. The government established minimum support prices by
establishing the Agricultural Cost and Price Commission as well as storage space
or go-downs for agriculture output and procurement.
Results and discussion
Type of agricultural activities they engaged
Related activity
Main activity
Crop farming Vegetable
farming
Animal
husbandry
Total
Crop farming 33 48 27 108
Vegetable farming 48 8 37 93
Animal husbandry 23 41 18 82
Total 108 93 82
Interpretation
The table shows which type of agricultural activities engaged by the respondents.
The major activities they engaged is crop farming and also the part of that they are
also engaged in other types activities.
THE EFFECTIVENESS OF ATMA NIRBHAR BHARAT SCHEME ON AGRICULTURAL SECTOR
169
Awareness regarding AtmaNirbhar Bharat Abhiyan for agricultural
sector
Attribute Frequency Percent
Aware 64 53. 33
Not Aware 56 46. 67
Total 120 100
Interpretation
From the table it is clear that 46.67 percent of respondents are not aware
aboutAtmaNirbhar Bharat Abhiyan for agricultural sector.
Hypothesis 1:
H0: Gender and awareness on the scheme are independent.
H1: Gender and awareness on the scheme are dependent.
Gender wise Chi- Square test
Awareness Male Female P Value Accept/ reject
Aware 37 27 0. 591 Accept
Not aware 36 20
Total 73 47
Grouping variable: Gender
Test distribution is not normal
Chi- Square test
Interpretation: From the table it is clear that P Value greater than 0.05 hence accept
the null hypothesis. That means gender and awareness are independent. Thus male
and female are getting awareness in same level.
Hypothesis 2:
H0: There is no signicant dierence between awareness on the scheme in age groups.
H1: There is a signicant dierence between awareness on the scheme in age groups.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
170
Age wise Mann Whitney Wilcoxon U test
Age group Aware Not Aware P Value Accept/ reject
20-30 1 0 0. 833 Accept
30-40 4 3
40-50 11 5
50-60 14 15
60 above 34 33
Total 64 56
Grouping variable: Age
Test distribution is not normal
Mann Whitney Wilcoxon U test
Interpretation: From the table it is clear that P Value is greater than 0.05. Hence
accept the null hypothesis. Thus there is no signicant dierence between awareness
and agegroups.
Hypothesis 3
H0: Benets availed through ABA scheme independent to awareness.
H1: Benets availed through ABA scheme dependent to awareness.
Relationship of awareness and benefits availed by respondents
Statements Aware Not
aware
Total P Value Accept/
Reject
Loans for
agricultural
activities
through ABA
Availed 45 33 78
0. 266 Accept
Not availed 19 23 42
Total 64 56 120
Availed
Moratorium
announced
through banks
for loans taken
Availed 20 8 28
0. 028 Reject
Not availed 44 48 92
Total 64 56 120
Grouping variable: Awareness
Test distribution is not normal
Test statistic: Chi Square
Interpretation: From the table it is clear that P value for the statement loans for
agricultural activities through ABA is 0.266. Accept the null hypothesis because P
value greater than 0.05. Thus benet like loans for agricultural activities through
ABA is independent to the awareness on the scheme.
THE EFFECTIVENESS OF ATMA NIRBHAR BHARAT SCHEME ON AGRICULTURAL SECTOR
171
The table shows the P value for the statement regarding the moratorium is
less than 0.02. Hence reject the null hypothesis. Thus it means that the benet like
moratorium and awareness are dependent.
Effectiveness of AtmaNirbhar Bharat Abhiyan from farmer
perspective
Statement Average Effectiveness
I am already aware about each and every fund distributed
through ABA
1.96 Slight effect
I am getting concessional credit through Kisan credit
cards
3.07 Moderate effect
ABA helps to reduce my nancial burden during Covid-19
pandemic
3.91 Good effect
Through ABA initiatives I have got chance to market
products globally
2.43 Slight effect
ABA scheme helps to get renance from cooperatives 2.28 Slight effect
ABA effectively worked in the agricultural sector 3.47 Moderate effect
Interpretation: The table shows the agreement of respondents regarding the
statements given. From that it is clear that there is no such huge impact of ABA on
agricultural sector from farmer perspective. They are agree that this scheme helps
them to reduce their nancial burden during the pandemic situation.
Findings
●60.83 percent of respondents are male and 55.84 percent of respondents are in the
age group above 60 years.
●The major activities they engaged is crop farming and also the part of that they
are also engaged in other types activities.
●46.67 percent of respondents are not aware about AtmaNirbhar Bharat Abhiyan
for agricultural sector.
●Gender and awareness are independent. Thus male and female are getting
awareness in same level.
●There is no signicant dierence between awareness and age groups.
●Benet like loans for agricultural activities through ABA is independent to the
awareness on the scheme.
●Benet like moratorium announced through banks for loans taken and awareness
are dependent.
●Analysis part shows that there is no such huge impact of ABA on agricultural
sector from farmer perspective. They are agree that this scheme helps them to
reduce their nancial burden during the pandemic situation.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
172
Suggestions
●The respondents are not much aware about the Atmanirbhar Bharat scheme, thus
the government should take measures to aware the actual beneciaries regarding
the schemes and nancial benets also.
●The rural farmers are also illiterates, so the local authorities make sure that all the
sectors are beneted by the scheme.
●Give a proper awareness regarding the various plans under AtmaNirbhar Bharat
Abhiyan to the rural farmers to get rid of them from the unexpected losses or
events.
Conclusion
The research made an attempt to study the eectiveness of Atmanirbhar Bharat Scheme
on agricultural sector: farmer perspective. The objectives of the study were to know the
awareness of respondents regarding the scheme and also to identify the eectiveness
of the scheme. The analysis shows that 46.67 percent of respondents are still not much
aware about the scheme introduced by our government but almost of the respondents
are availed the benets of this scheme without have any knowledge. Gender and
awareness are independent. Thus male and female are getting awareness in same
level.There is no signicant dierence between awareness and age groups.Benet
like loans for agricultural activities through ABA is independent to the awareness on
the scheme.Benet like moratorium announced through banks for loans taken and
awareness are dependent.Analysis part shows that there is no such huge impact of
ABA on agricultural sector from farmer perspective. They are agree that this scheme
helps them to reduce their nancial burden during the pandemic situation. Thus the
government should take measures to aware the actual beneciaries regarding the
schemes and nancial benets also. The rural farmers are also illiterates, so the local
authorities make sure that all the sectors are beneted by the scheme. It emerged since
May 2020, but still it’s not eective from the perspective of respondents because of
less awareness. The researcher concluded that most of the rural farmers are beneted
by this scheme but the actual fact that they are not aware about the scheme that
availed by them and also the implication of this scheme on the development of rural
agricultural sector. Thus the study suggests to give a proper awareness regarding the
various plans under AtmaNirbhar Bharat Abhiyan to the rural farmers to get rid of
them from the unexpected losses or events.
References
1. Alam, A., Khan, A., Ghosal, N., &Satpati, L. (2021). A review of resource
management and self‐reliance for sustainable development of India under
COVID‐19 scenario. Journal of Public Aairs, 21(4), e2725.
2. C, PARAMASIVAN & Subbiah, Rajaram. (2015). KAAV INTERNATIONAL
JOURNAL OF ECONOMICS, COMMERCE & BUSINESS MANAGEMENT.
THE EFFECTIVENESS OF ATMA NIRBHAR BHARAT SCHEME ON AGRICULTURAL SECTOR
173
3. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
4. Dubey, S., & Dubey, H. K. (2020). Atmanirbhar Bharat Abhiyan: An Analytical
Review. UGC Care Group I Journal, 10(4), 27-34.
5. Ghosh, P. K., Sivalingam, P. N., Chakraborty, D., Mandal, D., & Kumar, P.
(2021). Indian Agriculture: Issues, Challenges and Priorities. Innovations in
Agriculture for a Self-Reliant India, 1.
6. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
7. Nanduri, S. (2021). A CASE STUDY ON AGRICULTURE AND
MANAGEMENT OF FOODSTUFF IN INDIA. International Journal of
Modern Agriculture, 10(2), 1216-1223.
8. Paramasivan, C., & Muthusamy, S. (2017). Technopreneurship and development
of IT and ITeS industry in India. Imperial Journal of Interdisciplinary Research,
3(11).
9. PARAMASIVAN, D., & Rajaram, S. (2016). Micro Insurance Portfolio of
Public and Private Sector Insurance Companies.
10. Poojar, N. B. (2014). Agriculture Market Reforms and Marketing Infrastructure
Management in Post-Liberalization–An Empirical Study.
11. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and
its Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
12. S.Rajaram and J.Robert Edwin Chester (2020) Analytical Study on Visible
balance of payment in India, Studies in Indian Place Names., Vol.40., Issue.12.,
pp.129-132
13. Selladurai, M. Evaluating the Development of Technopreneurs in Tiruchirappalli
district.
14. Singh, S. B., Sarangthem, I., Sastry, E. D., Sinha, B., Feroze, S. M., Singh, N. J.,
&Haldhar, S. M. National Workshop on Gender Issues and Atmanirbhar Bharat
in Agriculture.
15. Subbiah, Rajaram. (2020). Empowering Indian Economy through GST in India.
16. Varma, S. (2022). Implementing AtmaNirbhar Bharat: A Project Management
Approach. In Transitioning From Globalized to Localized and Self-Reliant
Economies (pp. 190-207). IGI Global.
174
EXPORT PERFORMANCE OF THE
AGRICULTURAL PRODUCTS IN INDIA
– WITH SPECIAL REFERENCE TO
BRICS COUNTRIES
Dr. S. SUDHAGAR
Assistant Professor, Department of Commerce,
Periyar E.V.R. College, Trichy.
Dr. M. GURUPANDI
Assistant Professor, Department of Commerce,
Alagappa University, Karaikudi.
Mr. S. ESWARAN
Research Scholar, Department of Commerce,
Periyar E.V.R. College, Trichy.
ABSTRACT
This study explores how export performance of the agricultural products in India
– with special reference to BRICS countries. The many objectives in the analyze
the export performance of agricultural products to BRICS Countries. To study the
export opportunities for agricultural products within the BRICS countries. It is also
explore show to develop in export performance of the agricultural products (BRICS)
countries. It further seeks to add to Thus the may be increased in the future years. The
study used collect of export performance of the agricultural product in the India. The
research is based on secondary sources gathered from books, reports, journals, articles,
and the internet. The Agricultural Export Processed Development Authority will be
used to collect secondary sources (APEDA). The results of the export performance
analysis were thought to account for the majority of agricultural exports. The most
of the article were of the view that the through APEDA. The agricultural export from
the BRICS countries particularly South Africa and China increased.
Keyword: Export, Agricultural, Products, Performance, BRICS, Countries.
EXPORT PERFORMANCE OF THE AGRICULTURAL PRODUCTS
175
Introduction
Dr. T. Mohapatra, Secretary (DARE) & Director General, ICAR, inaugurated the
BRICS Agricultural Research Platform Coordinating Centre at NASC Complex
in New Delhi as a follow-up to the Memorandum of Understanding signed by the
Ministries of Agriculture of Brazil, Russian Federation, Republic of India, Peoples
Republic of China, and Republic of South Africa during the 8th BRICS Summit
in India in 2016. This is the rst multi-disciplinary and multi-lateral platform for
agricultural development and growth in Indian agriculture, with ve major countries
collaborating via a virtual network. The agrarian cultures of India, as well as its
diverse regional climate, have made a considerable contribution to the world food
basket. Indian curries, spices, snacks, and mangoes are known around the world for
their high quality. India is the global leader in the following food categories:
●Between March 2020 and February 2021, total agriculture commodity exports
totaled US$ 17.19 billion.
●Grape exports totaled US$ 47.36 million in April 2021.
●Grape exports totaled US$ 313.61 million in FY21.
●India exported pulses worth 17.73 million dollars and dairy products worth
$12.63 million dollars in April 2021.
●In FY21, India exported US$ 284.23 million in pulses and US$ 201.15 million
in dairy products.
●Natural honey exports totaled US$ 79.33 million in FY21.
●India exported natural honey worth US$ 13.01 million in April 2021.
●India is the world’s largest milk producer. By 2024, the country’s milk production
is predicted to reach 270 million metric tonnes (MMT).
●India boasts the world’s greatest bualo population (109.8 million in 2020).
●India exported basmati rice worth US$ 616.96 million, non-basmati rice worth
US$ 1.05 billion, and bualo meat worth US$ 594.76 million in FY22 (till May
2021).
●In FY21, India exported $4.02 billion in basmati rice, $4.81 billion in non-basmati
rice, and $3.17 billion in bualo meat.
●In FY20, India exported US$ 4.37 billion in basmati rice, US$ 3.20 billion in
bualo meat, and US$ 2.02 billion in non-basmati rice.
●Indian agricultural/horticultural and processed goods are exported to over 100
countries/regions, with the Middle East, Southeast Asia, SAARC countries, the
EU, and the United States being among the most important.
Review of Literature
Kumar, M.Arul (2021) The goal of this study is to prove that export is an important
activity for one country. We make up 42 percent of the world’s population. Agricultural
policies that increase food security and transform rural societies can be shaped by
BRICS countries. India is the world’s second-largest exporter of agricultural products.
Dairy Milk, Fresh Grapes, Cereal Preparations, Fresh Fruits, Floriculture, and Wheat
are India’s top food products. Through secondary data, the researcher discovered that
statistical analysis used descriptive statistics. According to the analysis, there is a
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
176
favourable association between economic growth and BRICS exports. Our country’s
foreign exchange value rises as a result of export. In 2016-17, India’s agricultural
exports reached a record high of Rs 1910 crore. As a result, the focus of this research
paper is on India’s agricultural exports to the BRICS countries. Brazil, Russia, India,
China, and South Africa, to name a few.
Mei Ling Wang (2018) The impact of information and communication
technology (ICT) on international commerce volume was investigated in this study,
which used panel data from the years 2000 to 2016 to conduct a comparative analysis
of BRICS countries. The ndings revealed that (1) ICT has a greater positive impact
on exports than on imports, (2) the higher the ICT levels in the value chain, the less
eective they were on both exports and imports at the same time, (3) the impact of
ICT levels on trade increased over time, and (4) ICT improvement levels have a
greater positive impact on trade in labor-intensive countries than in resource-intensive
BRICS countries. BRICS countries would benet from boosting their use of xed-
broadband and the internet to increase their export volume.
Irina Gabriela Radulescu (2014)The signicance of the BRICS group as
representatives of rising economies in the global economy is examined in this study.
It’s worth emphasising that the BRICS group was unaected by the nancial crisis
and had far better economic performance than Western countries. An increased input
of components, as well as massive scales of population and resources, were the major
causes that led to the group’s economic expansion. Brazil and Russia, for example, are
primarily dependent on vast mineral deposits and international market speculations.
China has a competitive advantage in terms of manpower and resources. India relies
on a low-cost workforce as well. Last but not least, all of the BRICS countries, with
the exception of Brazil, have very high investment rates.
Vítor João Pereira Domingues Martinho (2014)Emerging economies, such
as the BRICS (Brazil, Russia, India, China, and South Africa), have a signicant
impact on the global economy. With the economic and nancial crises in older
developed regions such as North America and Western Europe, these countries are
considered as areas of opportunity, not just for business but also for employment.
Because some of these countries are larger in terms of territory and population, the
agricultural sector has a signicant impact on their economic success. As a result, it
becomes critical to examine the dynamics of this sector in those countries, as well as
the factors that inuence their agricultural outputs. This statistical information was
evaluated using time series econometric approaches using data from the World Bank
(Several statistics; 2014) for the period 1961 to 2012 using the traditional function
of production.
Raul Gouvea (2013)In the previous two decades, the BRIC countries (Brazil,
Russia, India, and China) have signicantly increased their export sectors. Their
export business includes everything from commodities to high-value-added services.
In this research, we evaluate export diversication strategies using two portfolio
methodologies (Markowitz and single index models). The ndings show that China’s
export portfolio outperforms Brazil’s, India’s, and Russia’s. China has the most
diverse export prole among the BRIC countries, as well as the best eciency.
EXPORT PERFORMANCE OF THE AGRICULTURAL PRODUCTS
177
Export Performance of the Agricultural Products of Brazil
Brazil one of dominant country in world for us trade value in the Asia continent
Year Quantity
(Rs. In Crore)
Trend Value Gr%
2012-13 6471. 86 6662. 98 114. 33 -
2013-14 6640. 73 1532. 87 121. 97 6. 68
2014-15 7629. 50 3597. 24 104. 5 -14. 32
2015-16 7871. 66 8727. 35 96. 03 -7. 69
2016-17 9973. 12 13857. 46 112. 5 16. 62
2017-18 10805. 84 13857. 46 96. 46 -14. 25
2018-19 12280. 02 18987357 123. 2 27. 72
2019-20 12464. 57 24117. 68 205. 97 67. 18
2020-21 56111. 77 29247. 79 352. 55 71. 17
2021-22 8330. 71 34377. 9 136. 2 -61. 37
Itshows the quantities of export agricultural products from Brazil which diers
from year to year. The largest quantity of export is 56111.77 (2020-21) and the lowest
quantity of export is 6471.86 (2012 -13). The product exported from Brazil went
down during 2012 -13 and thereafter the quantity of agricultural product export has
been uctuation till 2022.The growth rates have usually gone up and down during
the years 2012-2022. In the year 2020-21 the growth value increased (71.16%) and
in 2014 it went very low (6.68 percent).
From the India’s agricultural export to Brazil
YEAR TREND QUANTITY
2022-23 39508. 467
2023-24 44638. 577
2024-25 49768. 687
2025-26 54898. 797
2026-27 60028. 907
The quantity performance of the export trade to Brazil. If it continues without any
change the trend values will regularly increase as 39508.467, 44638.577, 49768.687,
54898.797and 60028.907in the years 2023, 2024, 2025, 2026, and 2027. Thus the
may be increased in the future years.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
178
EXPORT PERFORMANCE OF THE AGRICULTURAL PRODUCTS OF
RUSSIA
Year Quantity
(Rs. In Crore)
Trend Value Gr%
2012-13 150784. 51 56643. 125 847. 14 -
2013-14 214198. 46 7991. 475 1174. 56 38. 65
2014-15 204319. 80 72626. 075 1105. 10 -5. 91
2015-16 160272. 08 137260. 675 960. 36 -13. 09
2016-17 215402. 72 201895. 275 1330. 34 38. 52
2017-18 196138. 79 201895. 275 1481. 86 11. 40
2018-19 223365. 86 266529. 875 1699. 29 14. 67
2019-20 249446. 50 331164. 475 1932. 18 13. 71
2020-21 278924. 17 395799. 075 1684. 83 -12. 80
2021-22 126099. 86 460433. 675 811. 04 -51. 86
It shows the quantities of export agricultural products from Russia which diers
from year to year. The largest quantity of export is 278924.17 (2020-21) and the
lowest quantity of export is 126099.86 (2021 -22). The product exported from Russia
went down during 2021 -22and thereafter the quantity of agricultural product export
has been uctuation till 2022.The growth rates have usually gone up and down during
the years 2012-2022. In the year 2013-14 the growth value increased (38.65%) and
in 2014 it went very low (-5.91percent).
Future Trend Quantity in Russia Country
YEAR TREND QUANTITY
2022-23 525068. 275
2023-24 589702. 875
2024-25 654337. 075
2025-26 718972. 075
2026-27 783606. 675
The quantity performance of the export trade to Russia. If it continues without
any change the trend values will regularly increase as 525068.275, 589702.875,
654337.075, 718972.075 and 783606.675 in the years 2023, 2024, 2025, 2026, and
2027. Thus the may be increased in the future years.
EXPORT PERFORMANCE OF THE AGRICULTURAL PRODUCTS
179
Export Performance of the Agricultural Products of China
Year Quantity
(Rs. In Crore)
Trend Value Gr%
2012-13 110638. 96 191299. 231 1721. 63 -
2013-14 153228. 72 923320. 221 1438. 58 -16. 44
2014-15 137585. 68 6658. 789 1079. 54 -24. 96
2015-16 83455. 12 105637. 799 664. 08 -38. 48
2016-17 83090. 74 204616. 809 532. 45 -19. 82
2017-18 56877. 76 204616. 809 470. 38 -11. 66
2018-19 104834. 96 303595. 819 925. 89 96. 84
2019-20 105422. 45 402574. 829 913. 09 -1. 38
2020-21 481942. 32 501553. 839 1957. 05 114. 33
2021-22 729091. 38 600532. 849 1968. 30 0. 57
It shows the quantities of export agricultural products from China which diers
from year to year. The largest quantity of export is 729091.38 (2021-22) and the
lowest quantity of export is 56877.76 (2017 -18). The product exported from China
went down during 2017 -18 and thereafter the quantity of agricultural product export
has been uctuation till 2022.The growth rates have usually gone up and down during
the years 2012-2022. In the year 2020-21 the growth value increased (114.33%) and
in 2020 it went very low (-1.38percent).
Future Trend Quantity in China Country
YEAR TREND QUANTITY
2022-23 699511. 859
2023-24 798490. 869
2024-25 897469. 879
2025-26 996448. 889
2026-27 1095427. 899
The quantity performance of the export trade to China. If it continues without
any change the trend values will regularly increase as 699511.859, 798490.869,
897469.879, 996448.889and 1095427.899 in the years 2023, 2024, 2025, 2026, and
2027. Thus the may be increased in the future years.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
180
Export Performance of the Agricultural Products of South Africa
Year Quantity
(Rs. In Crore)
Trend Value Gr%
2012-13 464379. 58 125173. 216 1162. 67 -
2013-14 435114. 52 21672. 636 1278. 58 9. 97
2014-15 380040. 54 81827. 944 1087. 04 -14. 98
2015-16 301311. 66 185328. 524 843. 19 -22. 43
2016-17 308153. 38 288829. 104 990. 09 17. 42
2017-18 182434. 89 288829. 104 679. 1 -31. 41
2018-19 195389. 11 392329. 684 762. 46 12. 28
2019-20 194483. 63 495830. 264 770 0. 99
2020-21 306511. 34 599330. 844 1113. 79 44. 65
2021-22 120472. 39 702831. 424 478. 01 -57. 08
It shows the quantities of export agricultural products from South Africa which
diers from year to year. The largest quantity of export is 464379.58 (2012-13) and
the lowest quantity of export is 120472.39 (2021 -22). The product exported from
South Africa went down during 2021 -22 and thereafter the quantity of agricultural
product export has been uctuation till 2022.The growth rates have usually gone up
and down during the years 2012-2022. In the year 2020-21 the growth value increased
(44.65%) and in 2020 it went very low (0.99percent).
Future Trend Quantity in South Africa Country
YEAR TREND QUANTITY
2022-23 806332. 004
2023-24 909832. 584
2024-25 1013333. 164
2025-26 1116833. 744
2026-27 1220334. 324
The quantity performance of the export trade to South Africa. If it continues
without any change the trend values will regularly increase as 806332.004,
909832.584, 1013333.164, 1116833.744 and 1220334.324 in the years 2023, 2024,
2025, 2026, and 2027. Thus the may be increased in the future years.
Conclusion
This paper contributes to the literature as very few India is one of the developing from
BRICS countries. It has achieved very pre-dominant export products. Export and
EXPORT PERFORMANCE OF THE AGRICULTURAL PRODUCTS
181
import are helpful in increasing its foreign exchange value. India can make a strong
and healthy relationship with other BRICS countries through export and import of its
products. India has to nd out new innovative products and export them to dierent
countries in the world to become a renowned and prosperous nation in future.
Reference
1. Bojnec, Š., Fertő, I., & Fogarasi, J. (2014). Quality of institutions and the BRIC
countries agro-food exports. China Agricultural Economic Review.
2. Chaturvedi, S., &Saha, S. (2017). Competing Imperatives of Global Governance
and National Interests within BRICS: An Indian Perspective. Observer Research
Foundation.
3. David Boansi (2014) Comparative Performance of Agricultural Export Trade:
During and Post-Agricultural Diversication Project in Ghana.British Journal
of Economics, Management & Trade 4(10): 1501-1511, 2014.
4. Gouvea, R., Mahto, R. V., & Montoya, M. J. R. (2013). BRIC national export
performance: a portfolio approach. Journal of Chinese Economic and Business
Studies, 11(1), 47-58.
5. Insurance, M. (2016). Paramasivan C and Rajaram S.
6. Martinho, V. J. P. D. (2015). The performance of the agricultural economics
in BRICS countries. In The Agricultural Economics of the 21st Century (pp.
71-88). Springer, Cham.
7. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
8. Paramasivan, C., & Pasupathi, R. (2017). A study on growth and performance
of Indian agro based exports. International Journal of Humanities and Social
Science Research, 3(9), 1-5.
9. Paramasivan, C., & Selladurai, M. (2017). Technopreneurship Education: Teach
and Train the Youths. Asian Journal of Management, 8(4), 1173-1176.
10. Priyadharshini, J., & Muthusamy, S. (2016). Green Marketing: Solar Energy
Opportunities and Challenges in India. International Journal of Research &
Business Innovation, 4(1).
11. Radulescu, I. G., Panait, M., & Voica, C. (2014). BRICS countries challenge to
the world economy new trends. Procedia economics and nance, 8, 605-613.
12. Selladurai, M. (2021). Performance of Agro Based Industries in India with
Special Reference to Sugar Industry.
13. Selladurai, M. M., & Sundararajan, K. K. (2013). A Study on Satisfaction of
Tourists Visiting Yercaud of Salem District. Asia Pacic Journal of Research in
Business Management, 4(3), 1.
14. Syed Wahid Ali Shah et al (2015)“Agricultural Export and Economic Growth:
A Case Study of Pakistan” Public Policy and Administration Research ISSN
2224-5731(Paper) ISSN 2225-0972(Online) Vol.5, No.8, 2015.
15. Wang, M. L., & Choi, C. H. (2019). How information and communication
technology aect international trade: a comparative analysis of BRICS
countries. Information Technology for Development, 25(3), 455-474.
182
VALUE ADDED AGRICULTURE
EXPORTS IN INDIA-WITH SPECIAL
REFERENCE TO SPECIAL CATEGORY
PRODUCTS
Dr. V. PALANISINGH
Assistant Professor, Department of Commerce & International Trade
Karunya Institute of Technology and Sciences, Coimbatore, Tamil Nadu
ABSTRACT
Agriculture is the backbone of Indian economy and provides employment to a large
majority of Indian work force. The nation has a vast potential in contributing to
international food trade on the account of its cultural dependence on agriculture and
the agro climatic variety that gives rise to a large food basket suitable for international
trade and earning foreign exchange for Indian economy. The Food Processing
Industry (FPI) in India is a sunrise sector that has gained prominence in recent the
years. A strong and dynamic food processing sector plays a signicant role in the
diversication of agricultural activities, improving value-addition opportunities and
creating a surplus for export of agro-food products. In this study a modest attempt
has been made to study the Value Added Agriculture Exports, Special Category Value
Added Agriculture Exports, Export Earnings and Foreign Direct Invest in Food
Processing Industry.
Keywords: Agriculture, International Trade and Exchange, Value Added Agriculture
Exports
Introduction
The Food Processing Industry (FPI) in India is a sunrise sector that has gained
prominence in recent the years. A strong and dynamic food processing sector plays
a signicant role in the diversication of agricultural activities, improving value-
addition opportunities and creating a surplus for export of agro-food products.
Availability of resources, shifting lifestyles and relaxation in policies has given a
VALUE ADDED AGRICULTURE EXPORTS IN INDIA
183
considerable drive to the industry. It is among the few that serves as a vital link
between the agriculture and industrial segments of the economy. Strengthening this
link is of crucial importance to improve the value of agricultural produce; ensure
remunerative prices to farmers and at the same time create favourable demand
for Indian agricultural products in the international market. The fastest growth in
the food processing sector and simultaneous improvement in the development of
value chain are also of great importance to achieve favourable terms of trade for
Indian agriculture both in the domestic and the global markets. A thrust to the food
processing sector implies the signicant growth of the agriculture sector and ensures
value addition to it. Keeping in view the role of food processing sector in terms of
its contribution to employment, reduction in wastages and ensuring higher returns
to farmers, Government has been promoting private investment through a number
of interventions.
The Indian food industry is poised for huge growth, increasing its contribution
to world food trade every year due to its immense potential for value addition,
particularly within the food processing industry. The Indian food and grocery market
is the world’s sixth largest, with retail contributing 70 per cent of the sales. The
Indian food processing industry accounts for 32 per cent of the country’s total food
market, one of the largest industries in India and is ranked fth in terms of production,
consumption, and export. It contributes around 8.80 and 8.39 per cent of Gross Value
Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s
exports and six per cent of total industrial investment.
Review of Literature
Saraswati (2014) in his article “Export Potential of Food Processing Industry in
India” has revealed that food processing sector covers activities such as agriculture,
horticulture, plantation, animal husbandry and sheries. It also includes other
industries that use, agriculture inputs for manufacturing of edible products. The food-
processing sector employs about 13 million persons directly and about 35 million
persons indirectly. India’s agricultural production base is quite strong, but at the same
time wastage of agricultural produce is massive. Processing is very low at around
2.20% in fruits and vegetables, 35% in milk, 21% in meat and 6% in poultry. Value
addition is only to the tune of 20% Food processing sector contributed about 14%
of the manufacturing Gross Domestic Product. This paper has analysed the export
potential of food processing industries (FPI) and the share of FPI’s export in total
exports of India.
Shelly and Kuldip Kaur (2015) in their paper “Impacts of Food Processing
Industry on Economic Growth, FDI and Exports of India” attempted to bring out
developmental experience of India in relation to the food processing industry. The
objective of this paper is to analyze the contribution of FPI sector in the GDP of India.
The inow of FDI in the food processing industry for the year 2000-01 to 2013-14
and export competitiveness of FPI sector for the year 2006-07 to 2012- 13 has also
been analyzed. They suggested policy measures to enhance the global competiveness
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
184
of Indian food industry, to facilitate exports and to increase inows of FDI to develop
India as a food processing hub and link it to the global production network.
Tambe, P. R. (2015) in his paper “Status of Food Processing Industry in India” has
narrated that the decade-and-a-half of Indian economic reforms have now reached a
stage where it is bringing about changes in the agriculture and food processing sectors.
However, demographic factors, changing lifestyles and consumer demand for greater
variety have increased pressures on the food processing sector to provide products at
competitive prices. Experience of large developed agricultural economies has proven
that the integration of production and processing stages is a universal feature of
ecient food marketing system in the advanced stages of economic development.
Anuj Gupta (2016) in his article “Export of India’s Agro Processed Food
Products: A Study of Tea” analysed the export of agro processed foods especially
tea, its trend, direction, world’s export and measures to enhance export. The study
revealed the position of India’s tea export in world market. It has been found that Iran,
Russia, UK, USA and UAE are the major importers of tea from India; hence they
must be focused more. China is the largest seller of tea at global market, while Iran
is the largest purchaser of India’s black tea. Government policies and institution play
an important role in enhancing the export of tea. Meanwhile, domestic demand of this
product is also increasing due to increase in population and other related factors. The
production of tea must also be increased by adopting various methods.
Share of FDI in FPI in FDI inow
The size and trend of Foreign Direct investment in Food Processing Industry and its
share in total FDI in India for the period 2010-11 to 2016-17 were analysed
Share of FDI in FPI in FDI inflow (US $ Millions)
Year FDI in FPI FDI Inflow Share of FDI in FPI in FDI
inflow
2010-11 189 34847 0. 54
2011-12 170 46556 0. 37
2012-13 401 34298 1. 17
2013-14 3983 36046 11. 05
2014-15 516 45148 1. 14
2015-16 506 55559 0. 91
2016-17 727 60220 1. 21
Mean 927 44668 2
S. D 1361. 3 10348. 9 3. 9
C. V 1. 5 0. 2 1. 6
CAGR % 21 8 12
VALUE ADDED AGRICULTURE EXPORTS IN INDIA
185
It reveals that share of Foreign Direct Investment in Food Processing Industry was
US $ 189 million in 2010-11 and it has increased to US $ 727 Million in 2016-17. The
average Foreign Direct Investment in Food Processing Industry is US $ 927 million
during the study period. Similarly Foreign Direct Investment in India is increased
from US $ 34847 million in 2010-11 and it has increased to US $ 60220 million in
2016-17. The average Foreign Direct Investment in Food Processing Industry is
US $ 44668 million. The increasing trend is found in percentage of Foreign Direct
Investment in Food Processing Industry in total Foreign Direct Investment in India.
It is increased from 0.54 per cent in 2010-11 to 1.21 per cent in 2016-17. It is inferred
that Food Processing Industry has high potential for Foreign Direct Investment. The
coecient of variation for Foreign Direct Investment in Food Processing Industry and
Foreign Direct Investment in India are 1.5 per cent and 0.2 per cent. The compound
annual growth rates for Foreign Direct Investment in Food Processing Industry and
Foreign Direct Investments are 21per cent and 8 per cent respectively.
Share of Value Added exports in Agriculture exports
The size and trend of Value added exports and agriculture exports from 2006-07 to
2016-17 are analysed and the results are given
Share of Value Added exports in Agriculture exports (US $ Million)
Year Agricultural
Exports
Value added exports Share of Value Added
exports in agri exports
2007-08 7311 1139 15. 58
2008-09 7540 1273 16. 88
2009-10 7344 1216 16. 56
2010-11 9308 1407 15. 12
2011-12 17321 1890 10. 91
2012-13 21741 2262 10. 4
2013-14 22706 2556 11. 26
2014-15 21488 2711 12. 62
2015-16 16405 2523 15. 38
2016-17 16191 2514 15. 53
Mean 14736 1949 --
S. D 6331 636 --
C. V 0. 43 0. 33 --
CAGR (%) 8. 28 8. 24 --
It reveals that Agriculture exports of Government of India was US $ 7311 million
in 2007-08 and it has increased to US $ 16191 million in 2016-17. Similarly value
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
186
added exports of India is increased from US $1139 million in 2007-08 to US $ 2515
million in 2016-17. The average export of agriculture export and value added export
is US $ 14736 million and US $ 1949 million. The coecient of variation of value
added export 0.33 per cent. It shows that there is a limited variation in value added
exports year by year. The compound annual growth rates of Agriculture exports and
value added exports are 8.28 per cent and 8.24 per cent respectively.
Readymade Value Added Agriculture Exports
Value added products increase export earnings. The APEDA concentrates on value
added products in the categories of ready to eat, cook, serve and frozen vegetables
for increasing export of agriculture products in India. Changes in food habits of
consumers in world market demand value added agriculture products. The following
table shows export of value added products (Special category) during the period
2008-09 to 2017-18.
Special Category Value Added Exports (US $ Millions)
Year Ready to
eat
Ready to
Cook
Ready to
Serve
Frozen
Vegetables
Total
2008-09 204. 44 145. 46 147. 04 18. 8 515. 74
2009-10 188. 45 158. 65 152. 34 13. 21 512. 65
2010-11 255. 94 208. 41 164 24. 71 653. 06
2011-12 367. 38 306. 95 224. 65 31. 3 930. 28
2012-13 410. 85 383. 24 326 24. 78 1144. 87
2013-14 498. 38 464 428. 2 41. 29 1431. 87
2014-15 511. 81 478. 03 485. 87 36. 74 1512. 45
2015-16 527. 46 468. 74 520. 29 28. 7 1545. 19
2016-17 604. 86 378. 49 508. 42 33. 52 1525. 29
2017-18 689. 8 393. 49 502. 59 34. 62 1620. 5
Mean 425. 93 338. 54 345. 94 28. 76 1139. 19
S. D 170. 8 127. 51 160. 87 8. 54 451. 15
C. V 0. 4 0. 37 0. 46 0. 29 0. 40
CAGR % 12. 93 10. 46 13. 08 6. 3 12. 13
It reveals that total export special category was US $ 515.74 million in 2008-09
US $ 1431.87 million in 2013-14 and it has increased to US $ 1620.5 million in 2017-
18 and it has registered a compound annual growth rate of 12.13 per cent. India is the
largest exporter of Ready to eat US $ 204.44 million 2008-09, US $ 498.38 million in
2013-14 and it has increased to US $ 689.8 million in 2017-18. The average export
to ready to eat product is US $ 425.93 million. The compound annual growth rate
is 12.93 per cent during the study period.The least coecient of variation is 0.29 in
VALUE ADDED AGRICULTURE EXPORTS IN INDIA
187
Frozen Vegetables. It shows that there is a very less variation in exports of Frozen
Vegetables year by year.
Difference among the product-wise export of Special Category
Value Added Products
In order to examine the dierence among the product-wise export of special category
value added products the Analysis of Variance (ANOVA) has been applied and the
results are presented
Difference among the product-wise export of Special Category Value
Added Products
Source of
Variation
SS df MS F P-value F crit
Between
Groups
920992. 8 3 306997. 6 17.
20
4. 26E-07 2. 86
Within Groups 642512. 7 36 17847. 57
Total 1563505 39
F value is more than the F critical value (17.20 > 2.86). Hence, the null hypothesis
is rejected. There is no signicant dierence among the product-wise export of special
category value added products is rejected.
Relationship between Value Added exports and Special category
exports
In order to examine the relationship between value added exports and special category
exports, the Regression analysis has been applied and the results are presented
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1. 999a. 999 . 997 32. 791
The regression model is t because the R is correlation; its value is .999 and R
Square is degree of determination its value is .999 and it is closer to 1 and the model
may be generalised because the adjusted R Square is .997 and it is closer to R Square.
The degree of determinationshows the extent to which Ready to eat, Ready to cook,
Ready to serve and Frozen Vegetables inuence the value added exports. Here the
value added export is determined to an extent of 99.9 per cent by Ready to eat, Ready
to cook, Ready to serve and Frozen Vegetables.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
188
Anova
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regression 3637996. 661 4 909499. 165 845. 851 . 000b
Residual 5376. 239 5 1075. 248
Total 3643372. 900 9
ANOVA table shows that the signicant value is .000 and it is less than 0.05 at
5 per cent level of signicance, which means dependent variable that is value added
export is signicantly predicted by independent variables namely Ready to eat, Ready
to cook, Ready to serve and Frozen Vegetables at 5 per cent signicant level.
Share of Ready to Eat Exports in Value Added Exports
The size and trend of Ready to Eat Exports and Value Added Exports for the year
from 2008-09 to 2017-18 were analysed and the results given
Share of Ready to Eat Exports in Value Added Exports (US $ Millions)
Year Value Added
Exports
Ready to eat Share of ready to eat
exports in Value Added
Exports
2008-09 1386. 64 204. 44 14. 74
2009-10 1235 188. 45 15. 26
2010-11 1494. 77 255. 94 17. 12
2011-12 1918. 57 367. 38 19. 15
2012-13 2377. 79 410. 85 17. 28
2013-14 3002. 74 498. 38 16. 60
2014-15 2848. 04 511. 81 17. 97
2015-16 2749. 07 527. 46 19. 19
2016-17 2753. 64 604. 86 21. 97
2017-18 3015. 07 689. 8 22. 88
Mean 2278. 13 425. 94 --
S. D 705. 26 170. 81 --
C. V 0. 31 0. 40 --
CAGR % 8. 08 12. 93 --
It reveals value added agriculture export was US $ 1386.64 million in 2008-09
and it has increased to US $ 3015.07 million in 2017-18. Similarly ready to eat was US
VALUE ADDED AGRICULTURE EXPORTS IN INDIA
189
$ 204.44 million in 2008-09, US $ 498.38 million in 2013-14 and it has increased to
US $ 689.80 million in 2017-18. The average export to ready to eat agriculture product
is 425.94 million during the study period. The increasing trend is found percentage
of ready to eat exports in value added exports. It is increased from 14.74 percent in
2008-09 to 22.88 per cent in 2017-18. The coecient of variation of value added
exports and ready to eat exports are 0.31 per cent and 0.40 per cent. The compound
annual growth rates of value added exports and ready to eat exports are 8.08 per cent
and 12.93 per cent in during the study period.
Conclusion
The share of Foreign Direct Investment in Food Processing Industry was US $ 189
million in 2010-11 and it has increased to US $ 727 Million in 2016-17. The increasing
trend is found in percentage of Foreign Direct Investment in Food Processing Industry
in total Foreign Direct Investment in India. It is inferred that Food Processing Industry
has high potential for Foreign Direct Investment. The total export of India is highly
inuenced by Special category exports (130.511) than other variables such as value
added exports, and agriculture exports. European Union region and American region
is the important emerging market for the export of Value added agriculture products.
The country-wise analysis export of value agriculture products revealed that, the
United States of America is the emerging market for the export of value added Indian
agricultural products.
References
1. Aneja, R.P. and Bhalachandran, G. (2009) Fruit and Vegetable, Production,
Processing and Marketing: Potential & Perspective, Department of Economics,
SSSIHL, Prasanthinilayam.
2. Anjum, S., & Khan, A. (2017). Changing Pattern in india’s Agricultural exports
under WTO. Economic Aairs, 62(2), 253-262.
3. Barma, T. (2017). Eciency of India’s Agricultural Exports: A Stochastic Panel
Analysis. South Asia Economic Journal, 18(2), 276-295.
4. Bhat, K. S., & Nirmala, V. (2001). Instability of agricultural exports and
economic growth in India. Indian Economic Journal, 48(3), 87.
5. Chengappa, P. G. (2004). Emerging trends in agro-processing in India. Indian
Journal of Agricultural Economics, 59(902-2016-68029).
6. Das, S. (2014). Agricultural Products Exports in India. Agricultural Marketing,
339.
7. Gurumoorthy, T. R., Palanisingh, V., & Vijayalakshmi, R. (2019). Analysis of
Modes of Transport of Agriculture Exports in India. Advance and Innovative
Research, 154.
8. Insurance, M. (2016). Paramasivan C and Rajaram S.
9. Jongwanich, J. (2009). The impact of food safety standards on processed food
exports from developing countries. Food Policy, 34(5), 447-457.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
190
10. Kalmegh, S., & Sing, N. (2016). Challenges and obstacles in Indian oriculture
industry. International Journal of Innovative Research and Development, 5(7),
1-20.
11. Kaundal, R. K., & Sharma, M. (2006). Agricultural Exports of India in the New
Economic Environment. Foreign Trade Review, 41(2), 3-34.
12. Khan, D., &Fazili, A. I. (2015). A SWOT analysis of oriculture industry in
Kashmir. International Monthly Refereed Journal of Research in Management
and Technology, 4(12), 1-4.
13. Kumar BJ, A., & Rao, N. J. (2010). Export Promotion Policies and Non-
Traditional Agricultural Exports: The Case of Gherkin Exports from India.
Foreign Trade Review, 45(3), 42-60.
14. Mahajan, P., & Nanda, P. (2011). Structural changes in commodity composition
and direction of agricultural exports in India under WTO regime. IUP Journal
of Agricultural Economics, 8(3), 7.
15. Misra, D., & Ghosh, S. (2016). Growth and export status of Indian oriculture:
A review. Agricultural Reviews, 37(1), 77-80.
16. Mohamad, S., Nair, M., &Juso, K. (2009), “Exchange Rates and Export
Competitiveness in Selected ASEAN Economies”, International Business
Research, Vol. 2 (2), pp.156-166.
17. Murthy K.S. and D. Himachalam. (2011) “Problems of Fruit Processing
Industry in AndhraPradesh – A Case Study of Select Units in Chittoor District”.
International Journal of Research in Commerce & Management, Volume 2,
Issue No. 5.
18. National Skill Development Council (2010) Human resource and skill
requirements in the food processing sector: study on mapping of human
resource skill gaps in India till 2022. New Delhi, India.
19. Navalur, N. P., Tirlapur, L. N., & Patil, B. O. (2015). Floriculture scenario in
India. International Journal of Commerce and Business Management, 8(2),
184-187.
20. Ninama, A. P., Sipai, S. A., Khadayata, K. G., & Patel, P. C. (2016). Floriculture
in India: problems and prospect. Advances in Life Sciences, 5, 1150-1153.
21. Priyadharshini, J., & Muthusamy, S. (2016). Technopreneurial Education and
its Impact in India. Asian Journal of Multidimensional Research, 5(10-11).
22. Sharma, Vijay Paul and Dinesh Jain (2011), “High Value Agriculture in India:
Past Trends and Future Prospects”, Working Paper 2011-07-02, Indian Institute
of Management, Ahmadabad, July.
23. Sidhu, M. S. (2005). Fruit and vegetable processing industry in India: An
appraisal of the post-reform period. Economic and Political Weekly, 3056-3061.
191
FINANCIAL LITERACY ON ECONOMIC
SUSTAINABILITY AMONG THE MAO-
NAGA FARMERS OF NORTH-EAST
INDIA
K. KATINI
Commerce Department,
(CHRIST Deemed to be University), Bangalore
Dr. S.AMALANATHAN
School of Business and Management,
CHRIST (Deemed to be University), Bangalore
ABSTRACT
The role of nancial literacy in promoting economic sustainability is established
among the farmers of the Mao-Naga tribe of North-east India. Nonetheless, a study
analyses explicitly Scheduled tribe’s nancial literacy and sustainability. This study
focuses on Mao-Naga tribe farmers’ nancial literacy and economic sustainability.
We adopt the quantitative approach with a structured questionnaire survey for the
research instrument. SMART PLS 3.3.5 version analysesstructural equation modelling
hypothesis testing. The nding indicates that nancial literacy can contribute to the
farmers’ economic sustainability among the scheduled tribe. The study shows that
nancial knowledge and nancial behaviour have signicant positive relationships
with economic sustainability. This study suggests nancial awareness programmes
to enhance general nancial literacy, especially among rural small farmers in the
Northeast of India.
Keywords: nancial attitude, nancial awareness, nancial behaviour, nancial
knowledge
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
192
Introduction
Financial literacy benets individuals and households, providing an advantage for
retirement plans, wealth accumulation, and quick recovery during natural disasters. It
helps the entrepreneurs for portfolio decision-making, the youths in risk management,
accelerate digital nancial inclusion, contribute sustainability, and tremendous eect
on investment decisions. Governments, NGOs, and other statutory bodies understand
the complexity and the vital role of nancial transactions and try implementing
techniques to enhance nancial literacy.
The past decades witnessed policymakers’ eorts to substantiate sustainable
development irrespective of societies and economies and introduce farmers’ schemes
and insurance. How far the meagre farmers of Northeast India benetted is a question,
as agricultureis the source of their sustenance. Individuals are responsible for their
nancial decision outcomes with a unique approach. Financial literacy is not an
end in itself; its result, directly and indirectly, impacts sustainability (OECD, 2018).
Rural small farmers participation in economic development is closely related to
nancial literacy. Exploring the nancial literacy of meagre farmers can contribute
to sustainable development. There is a phenomenon of low nancial literacy among
the small farmers and scheduled tribes in India. Participation in commercial and
agriculture insurance become beyond their capacity in the rural areas. Therefore, it
is of great value to analyse the relationship between nancial literacy and economic
sustainability, which may be a new perspective to accelerate nance to the rural
economy among the Scheduled tribe farmers in Northeast India.
There are numerous concepts for nancial literacy. ForLusardi and Mitchell
(2008), nancial literacy is the knowledge to make investments, savings, and nancial
capability (Lusardi and Mitchell, 2014). According to Hung et al. (2009) and Huston
(2010), nancial literacy consists of nancial attitude, nancial behaviour, nancial
knowledge, nancial information and an individual’s ability to make nancial
decisions wisely. Fernandes et al. (2014) used the terms nancial literacy, nancial
education and nancial knowledge as one, but Huston (2010) andPotrich et al. (2016)
debateand warn researchers for the interchangeable usage. For Potrich et al. (2016),
nancial literacy is the process to facilitate personal development.
In this paper, we adopt the concept of OECD “A combination of awareness,
knowledge, skills, attitudes and behaviour necessary to make sound nancial
decisions and ultimately achieve individual nancial well-being”(OECD, 2020). It is
not a singular concept but consists of nancial attitude, nancial behaviour, nancial
awareness and nancial knowledge (Carpena & Zia, 2020). Financial knowledge,
skills, attitudes, and behaviour leads to nancial literacy (Collins & Odders-White,
2015). Our paper empirically tests the relationship of nancial literacy dimensions
with economic sustainability to answer whether nancial literacy aects the economic
sustainability of meagre rural farmers. This research focuses on Mao-Nagas farmers,
a major Naga tribe of Manipur, scattered in dierent parts of the Northeast region
and other parts of the country (Daniel, 2021) whose economic resources are based
on agriculture and almost every household is engaged in this sector. They take pride
in their labour and the organic productsof farms, poultry, and kitchen gardens. The
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY AMONG
193
Mao-Naga farmers indulge in the agricultural sector, conscious of meeting their
present requirements without compromising future generations’ needs (Brundtland,
1987), which is vivid in their rice terrace eld cultivation.
This research paper is organisedinto the following parts: The rst section states
the literature review and hypotheses development. The second section species
methodology and empirical specications. The third section states the empirical
ndings. The fourth section discussesthe relationship of nancial literacy on economic
sustainability. And lastly, we make the conclusions of our research ndings.
Literature Review and Hypothesis Development
Theoretical Underpinning
Theory of planned behaviour(TPB) and sustainability underpins thetheoretical
background of the paper. Financial literacy is a psychological process and inuences
nancial plans (Jais & Asokumar, 2020)ageing population coupled with longer
longevity has posed a challenge, as most of the working individuals are still unprepared
and not ready to face retirement because of poor planning for their golden years.
Similarly, there is a growing aging workforce in the Malaysian energy industry that
begets attention for retirement planning. Lack of adequate planning can be an obstacle
to achieve a desired retirement life. Therefore, this study examined the determinants
(i.e. psychological process, social inuence and environmental inuence.When
individuals learn to save and plan cognitively, they contribute to a responsible
future. The theory of planned behaviour (TPB) (Ajzen, 1991)and the concept of
sustainability (Brundtland, 1987) predict individual perspectives of nancial literacy
towards economic sustainability. TPB explained that subjective norms, attitude, and
perceived behaviour could explain human activity and behaviour.The TPB is the most
suitable theory related to nancial behaviour(Xiao, 2008). Financial literacy with the
applicability of TPB understands from the behavioural perspective, rooted in cognitive
development (Yong et al., 2018)attitude, behaviour and nancial literacy among
young working adults in Malaysia. Perceiving nancial literacy as a developmental
process which includes knowledge and application dimensions, the proposed model
was tested on a sample of 1915 young working adults from Klang Valley, Malaysia.
Data was analysed using structural equation modelling (SEM. Financial literacy is an
ongoing universal concept rather than a context-specic concept. Sustainability and
nancial literacy have the same objectivity of future sustenance without comprising
the present requirements.
Socio-economic of Mao Nagas
Agriculture is the leading economy, and hardwork is a unique trait among Mao-Naga.
They cultivate terrace elds on slopes of hills, at the foot of mountains and along
the river bank (Maheo, 2004), depending solely on the monsoon. Every Mao-Naga
family maintains their rice terrace elds and permanent organic vegetable gardens
for sustainability (Jajuo&Sukai, 2017). It is the sole community cultivating potato for
commercial purposes (Kapesa., 2017), and there is a high demand for the produced
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
194
with ‘Mao-potatoes’ brand in the region. They grow seasonal citric and non-citric
fruits for both consumption and commercial. Another remarkable contribution of
these meagre farmers is the oriculture, initiated by womenfolk for both commercial
and beautication purposes. Many women employ themselves in SMEs and supply
organic cultivated vegetables, owers, and fruits to many parts of the country. There
is a strong emphasis amongMao-Naga households to full the genuine needs of
economic sustainability (Ariina, 2021).
Financial Awareness to Financial Attitude and Financial
Knowledge
Financial awareness is one of the dimensions of nancial literacy. Financial awareness
is the knowledge of nancial products(George-Jackson & Jones Gast, 2014) and
the capability to understand nancial strategies andservices. Financial awareness
leads to attitude and knowledge(Eniola & Entebang, 2017; Carpena & Zia, 2020).
Financial awareness, skills, behaviour, and knowledge are the antecedent of nancial
literacy and nancial awareness inuences nancial behaviour through subjective
nancial knowledge (V. Dewi et al., 2020). Financial awareness enables investing in
mutual funds, unit trust funds, employee provident funds, banking systems, insurance
paying bills, time value of money, reviewing credit card statements, and budgeting
(Eniola & Entebang, 2017; Carpena & Zia, 2020). It can enhance personal nance
and contribute to their human capital (Huston, 2015). Lack of nancial awareness
exhibits low condence and poor nancial decisions (Nga et al., 2010). Lack of
nancial products awareness and nancial institutions become a signicant barrier to
access the nancial service (Abubakar, 2015). Lack of nancial awareness can lead
to risky nancial behaviour of overspending and getting scammed in investments
(Sunderaraman et al., 2020).
Financial attitude as an essential component of nancial literacy has robust
implications for nancial well-being, and it is the psychological inclination manifesting
an individual’s nancial management that can inuence saving behaviour(Strömbäck
et al., 2017). Financial attitude, nancial behaviour and nancial knowledge function
independently in dierent dimensions (Agarwalla et al., 2015).
The concept of acquiring knowledge and ability to understand the macro and
microeconomic environment on savings, credit, investments, ination, interest rates,
time value of money, numeracy, risk diversication and other nancial products
comprises objective nancial literacy (Lusardi & Mitchell, 2008; M. van Rooij et
al., 2011; M. C. J. van Rooij et al., 2012; Bucher-Koenen et al., 2017; M. N. Khan
et al., 2017). Objective nancial knowledge improves through nancial education.
Alternatively, there is another perspective of nancial knowledge. Subjective
nancial knowledge assesses the person’s knowledge, interest, beliefs, and ability
to make nancial decisions (Sivaramakrishnan et al., 2017). It is reected through
attitude, and this nancial attitude can shape behaviour(Robb & Woodyard, 2011;
Riitsalu & Murakas, 2019). The subjective nancial knowledge moderates nancial
behaviour(Kadoya & Rahim Khan, 2020) and in turn, nancial behaviour measures
people’s nancial transactions for better nancial decisions (Kadoya & Rahim Khan,
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY AMONG
195
2020). Financial awareness assesses subjective nancial knowledge (Carpena & Zia,
2020)and inuences nancial behaviour(V. Dewi et al., 2020).
Financial Knowledge and Financial Behaviour
There exists a positive relationship between nancial knowledge and nancial
behaviour(Jappelli and Padula, 2013; Serido et al., 2013). In the study of Parrotta
& Johnson (1998), nancial knowledge does not moderate between nancial
attitude and behaviour. Financial knowledge leads to nancial behaviour(Abubakar,
2015). Thebehavioural characteristics of self-attribution, mental accounting, and
emotional biases lead to irrational nancial decision-making (Baker et al., 2019).
Psychological traits of self-control inuence nancial behaviour and nancial well-
being (Strömbäck et al., 2017). Financial education programmes didn’t contribute
much to nancial behaviour(Stolper &Walter, 2017). Financial behaviour consists
of managing nance, savings for emergencies, credit management, long-term goals
for retirement, managing risks, purchasing insurance, and nancial plans (V. I. Dewi
et al., 2020). Financial behaviour is an essential dimension of nancial literacy
(Atkinson et al., 2007; Abubakar, 2015; Potrich et al., 2015; (Shkvarchuk & Slav’yuk,
2019). Financial knowledge associates with nancial behaviour (Kalmi, 2018; Kim
et al., 2019).
Financial Attitude to Financial Behaviour
According to Xiao (2008), attitude leads to intentions, which leads to behaviour.
Financial attitudes are the individual’s perspectives about nancial benets (Carpena
& Zia, 2020) and have the most substantial inuence on nancial behaviour(Shim et
al., 2015). It forms a requisite element of human behaviour and contributes to long term
nancial well-being (Białowolski et al., 2020)little is known about the role of nancial
knowledge and skills—the main components of the nancial literacy construct—in
shaping debt attitudes. This link is especially absent from the gender perspective.
This study focuses on consumer debt literacy and debt attitudes. A representative
sample of adult Poles (N = 1, 004. Financial attitude impacts retail investors’ nancial
behaviour(Talwar et al., 2021). Cognitive ability to grasp numbers and emotional
attitude drives nancial literacy (Skagerlund et al., 2018)such as individual cognitive
ability. The current study investigated the role of cognitive and emotional factors in
attaining nancial literacy. In a representative sample of the general population, our
regression models indicate that a central component of nancial literacy can be traced
to numeracy and the emotional attitude towards numbers (i.e. mathematics anxiety.
Financial attitude positively relates to nancial management nancial (Parrotta &
Johnson, 1998).
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
196
The Link between Financial Attitude and Knowledge on
Economic Sustainability
Sustainable development comprises three pillars of society, economy and environmental
dimensions, and there are interdependent for development. Sustainability consciousness
is possible only through the proper educational avenues (Kumari & Harikrishnan,
2021). Sustainability and personal nance have the same objective of providing
maximum benets without aecting future generations (Whire et al., 2018). There
is a positive relationship between person nance decisions of nancial behaviour
attitude with sustainable behaviour(De Silva & Pownall, 2014). Financial resources
are necessary for ecological, social and economic sustenance. Environmental issues
aect well-being and holistic growth (Fabris, 2020) and mitigate the meagre farmers’
dependent on the monsoon for cultivation. Financially literate can evaluate, manage,
read, and handle the personal nancial situation that aects well-being (Ganesan et
al., 2020). Financial behaviour, culture, economic conditions and nancial attitude
form nancial literacy (Warmath & Zimmerman, 2019). Financial development
assists industries in adopting green energy and clean technology for sustainable
development (Chien et al., 2021). Knowledge and behaviour are the most important
determining factors of individuals’ sustainable behaviour. Financial knowledge
increases renewable energy consumption and sustainability consciousness (Martins
et al., 2020). Attitude, knowledge and behaviour augment consumers’ behaviour
(M. S. Khan et al., 2020). Financial literacy on sustainability is vital as most allied
industries and their products revolve around agriculturein India(Sharma et al., 2021).
The link between Financial Behaviour and Environmental
Sustainability
Attitude towards sustainable behaviour indicates individuals’ belief in sustainability.
Individuals with low nancial literacy are likely to plan less for retirement (Stolper
& Walter, 2017). Financial behaviour leads to sustainable behaviour(Hau et al.,
2020). Lack of nancial resources aects consumer behaviour in contributing to
sustainability(Scherer et al., 2018).A higher level of nancial literacy is associated
with lower energy consumption awareness. The subset of nancial literacy, like
energy-related nancial literacy, has shot up (Blasch et al., 2021) based on energy-
ecient investment and cost awareness. Households with higher nancial literacy
can control the cost of energy consumption and manage energy eciency (Brent &
Ward, 2018;Filippini et al., 2020). The cognitive abilities of energy literacy consist of
behaviour, knowledge, and skills, including nancial capacity to investigate economic
investment and consumption (Chodkowska-Miszczuk et al., 2021). Financial literacy
contributes to eective consumerbehaviour and is resilient to climate change (Rai et
al., 2018).Given the importance of nancial literacy and its dimensions on economic
sustainability based on the existing literature, developed a research model.
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY AMONG
197
Methodology
The Statistical Program for Social Science (SPSS) software of version 26 is used to
analyse the demographic prole of the respondents, and the SMART PLS 3.3.6 version
is used to test the hypotheses. This study described the structural relationship between
nancial awareness, nancial knowledge, nancial skills, and nancial behaviouron
economic sustainability. Data was collected from the Scheduled Mao-Naga farmers
prominently living in Nagaland and Manipur states. A self-explanatory questionnaire
was distributed, and after screening the outliers, 332 respondents were considered
for the study. Both academicians and non-academician did the content validation.
The pilot study was carried out among 30 adults to ensure consistency. It employed
a convenient and simple random sampling method. The research was conducted
for adults aged above 18 years for reasons like lack of nancial literacy among the
Scheduled tribe farmers and less nancial market penetration in the Northeast region.
Demographic Prole of Respondents
Out of the total 332 respondents, 138 (41.6%) respondents were females, and 194
(58.4%) were males in our study, the age group of 18-29, with 224 participants (65.5%)
represented the highest. In occupation, mainly students (post-graduate-147, 44.3%)
highly recorded. The No income group with172 participants (51.8%) constitute the
highest income level, indicating low income among the meagre farmers to save for
the future.
Profile N %
Gender Female 138 41. 6
Male 194 58. 4
Age 18-29 224 67. 5
30-39 78 23. 5
40-49 23 6. 9
50-59 5 1. 5
60 Above 2 0. 6
Education No formal education/upto class 6 6 1. 8
Primary School/upto class 6 8 2. 4
Lower Secondary School/Class 7-9 14 4. 2
Higher Secondary School/Class 10-12 47 14. 2
Undergraduate 107 32. 2
Post-Graduate 147 44. 3
PhD 3 0. 9
Income 10000 35 10. 5
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
198
10000-50000 74 22
50001-200000 34 10. 2
200001-500000 11 3. 3
Above 500000 6 1. 8
No income 172 51. 8
Measurement Model Evaluation
We accounted for the item loadings, ranging from 0.692 to 0.839. AVE ranges from
0.546 to 0.660 and meets the given threshold. CR values are between 0.857 and 0.930,
and Cronbach’s Alpha value from 0.793 to 0.912. The constructs have no multi-
collinearity issue as VIF values are below 3, as depicted in Table 2. The discriminant
validity is conrmed based on HTMT; every item is within the threshold. Table 3
presents HTMT ndings, and all values are lower than 0.85 and 0.9. Overall, the
measurement model assessment indicates good reliability convergent and discriminant
validity, providing vital insights for subsequent structural model analysis.
Structural Model Assessment
In SMART PLS, the essential evaluation metrics are the statistical signicance path
coecient of the exogenous latent variables on the endogenous latent variables,
R2 (explained variance), f
2 (eect size), and Q2 (predictive relevance) (Hair et al.,
2017). The bootstrapping technique is done with 5000 iterations sampling to test the
hypothesis for beta coecient (β) and t-values. The beta coecient value assesses
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY AMONG
199
the strength of the relationship between exogenous and endogenous constructs and
ranges from zero to one, indicating positive or negative
Construct Items loading VIF αCR AVE
Economic
Sustainability
EcS1 0. 78 1. 69 0. 79 0. 86 0. 55
EcS2 0. 70 1. 66
EcS3 0. 72 1. 46
EcS4 0. 77 1. 69
EcS5 0. 72 1. 41
Financial Attitude FA 2 0. 84 2. 65 0. 91 0. 93 0. 66
FA3 0. 83 2. 29
FA4 0. 72 1. 67
FA5 0. 84 2. 70
FA6 0. 81 2. 54
FA7 0. 84 2. 87
FA8 0. 79 2. 25
Financial Awareness FAw1 0. 83 2. 29 0. 87 0. 91 0. 66
FAw2 0. 79 2. 20
FAw3 0. 84 2. 10
FAw4 0. 83 2. 34
FAw5 0. 77 2. 09
Financial Behaviour FB2 0. 71 1. 83 0. 86 0. 89 0. 54
FB3 0. 76 1. 70
FB4 0. 76 2. 26
FB5 0. 77 2. 31
FB6 0. 76 1. 98
FB7 0. 70 1. 79
FB8 0. 69 1. 55
Financial Knowledge FK1 0. 74 1. 50 0. 86 0. 89 0. 59
FK2 0. 81 1. 88
FK3 0. 79 2. 12
FK4 0. 76 1. 80
FK5 0. 76 2. 04
FK6 0. 73 1. 77
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
200
According to Hair et al. (2017), the t-statistics value equal to or higher than
1. 96 is considered signicant. The ndings illustrate positive direct relationship
between nancial awareness and nancial attitude (H1, β = 0. 41, p = 0. 000), nancial
awareness on nancial knowledge (H2, β = 0. 63, p = 0. 000), nancial knowledge on
nancial behaviour (H3, β=0. 39, p = 0. 000), nancial attitude on nancial behaviour
(H4, β = 0. 33, p = 0. 000), nancial knowledge on economic sustainability (H6, β
= 0. 29, p = 0. 000), and nancial behaviour on economic sustainability (H7, β =
0. 26, p = 0. 000). There is no relationship between nancial attitude and economic
sustainability (H5, β = 0. 08, p = 0. 170), as shown in Table 3. The result of H8 (β = 0.
18, p = 0. 000), H9 (β = 0. 03, p = 0. 18) which is not signicant at 5%, H10 (β = 0. 10,
p = 0. 000) and H11 (β = 0. 09, p = 0. 001) highlights parallel mediations. The indirect
eect of nancial awareness on economic sustainability is sequentially mediated
by nancial attitude and behaviour H12 (β = 0. 04, p = 0. 003; condence interval
has zero values). Financial knowledge and nancial behaviour serially mediate the
indirect relationships between nancial awareness and environmental sustainability
H13 (β = 0. 06, p = 0. 000; condence interval has zero values). The ndings indicate
that almost all the hypotheses are positively signicant at p < 0. 05, t> 1. 96 except
H5 and H9 in this study. Concerning directand indirect relationships through the
mediating variables, Table 4 shows the hypothesis results.
Discriminant validity results: HTMT
Construct EcS FA FAw FB FK
EcS
FA 0. 34
FAw 0. 40 0. 45
FB 0. 52 0. 52 0. 44
FK 0. 53 0. 38 0. 73 0. 59
The R2 value was obtained to determine the variance in the endogenous constructs
explained by all the exogenous constructs (Hair et al., 2017). As a rule of thumb, the R2
values of 0.25, 0.50 and 0.70 are considered weak, moderate, and strong explanation
power. In the present study, the R2 value is 35% for nancial behaviour, 26% for
economic sustainability, 40% for nancial knowledge and nancial attitude, 17%,
respectively. Thus, indicating the presence of explanatory power (R2). In addition,
the eect (f2)values were assessed in the structural model. The f2is used to determine
whether the exogenous constructs have small (0.02), medium (0.15) or substantial
(0.35) (Cohen, 1988) impact on the endogenous construct (Hair et al., 2017). Our result
shows that the eect size was small for nancial attitude on economic sustainability
(0.6%), nancial behaviour on economic sustainability (5.9%), nancial knowledge
on economic sustainability (8%), and nancial attitude on nancial behaviour
(14.7%). At the same time, the impact of nancial awareness on nancial attitude
(19.8%) and nancial knowledge on behaviour (20.6%) have medium f2. Financial
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY AMONG
201
awareness on knowledge has substantial eect size values (67.3%). Thus, indicating
the presence of weak, medium and strong eect power in this study.
Structural model results
Hypothesis
relationships
βT
stats
P
values
Confidence
interval
bias-corrected
Result
(2. 5%) (97.
5%)
H1 F Aw-> FA 0. 41 7. 60 0. 000 0. 30 0. 51 Supported
H2 FAw-> FK 0. 63 16. 0 0. 000 0. 55 0. 70 Supported
H3 FK-> FB 0. 39 7. 18 0. 000 0. 28 0. 49 Supported
H4 FA -> FB 0. 33 6. 21 0. 000 0. 22 0. 43 Supported
H5 FA->EcS 0. 08 1. 37 0. 170 -0. 04 0. 18 Not Supported
H6 FK->EcS 0. 29 4. 75 0. 000 0. 16 0. 40 Supported
H7 FB->EcS 0. 26 4. 09 0. 000 0. 13 0. 38 Supported
H8 FAw->FK->EcS 0. 18 4. 78 0. 000 0. 10 0. 25 Supported
H9 FAw ->FA->EcS 0. 03 1. 34 0. 180 -0. 01 0. 08 Not Supported
H10 FK-> FB->EcS 0. 10 3. 77 0. 000 0. 05 0. 16 Supported
H11 FA-> FB->EcS 0. 09 3. 33 0. 001 0. 04 0. 14 Supported
H12 FAw
->FA->FB->EcS
0. 04 2. 98 0. 003 0. 02 0. 06 Supported
H13 FAw->FK->FB
->EcS
0. 06 3. 61 0. 000 0. 03 0. 10 Supported
Predictive Power (Q2)
The techniques of blindfolding assess the predictive relevance of the model. To
evaluate the accuracy of the path model’s predictive relevance is by calculating the
Q2(Hair et al., 2019).As a rule of thumb, the Q2 value should be greater than zero for
any endogenous construct. The Q2 values higher than 0, 0.25 and 0.50 depict the PLS-
path model’s small, medium, and substantiate predictive relevance (Hair et al., 2019).
Our results highlight 10.4% for nancial attitude, 13.6% for economic sustainability,
18.5% for nancial behaviour, and 23 for nancial knowledge %. The model has a
predictive relevance since the Q2 values are greater than zero. This model can be used
to predict economic sustainability.
Conclusion
The study conrms coherent direct relationships of nancial awareness, nancial
knowledge and nancial behaviour and indirect relation of nancial attitude with
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
202
economic sustainability. The message for the policymakersand other stakeholders is
to set strategies to increase farmers’ nancial literacy for economic sustainability in the
region where agriculture is the backbone of their sustenance.To reiterate, the primary
purpose of this study is to identify the nancial literacy factors inuencing economic
sustainability. The main ndings revealed that all direct and indirect relationships
signicantly aect economic sustainability, similar to past literature. Empirically,
this study demonstrates that nancial literacy could increase the predictive power of
economic sustainability. Financial education programmes could improve nancial
literacy and, thereby, economic sustainability. Financial literacy components can
contribute better toa broader array of individuals’ savings, investments and spending
attributes. Diverting savings to green energy consumption, improved housing
conditions, engaging in SMEs, contributing to the charitable entity, and adopting
the recycle and reuse behaviour could promote economic quality. Financial literacy
components can contribute to other elements of sustainability like environmental,
social and governance. Further research needs to undertake in future for other aspects
that can inuence economic sustainability.
References
1. Abubakar, H. A. (2015). Entrepreneurship development and nancial literacy
in Africa World Journal of Entrepreneurship, Management and Sustainable
Development, 11(4), 281–294.
2. Agarwalla, S. K., Barua, S. K., Jacob, J., & Varma, J. R. (2015). Financial
Literacy among Working Young in Urban India. World Development,
67(March), 101–109.
3. Ajzen, I. (1991). The Theory of Planned Behavior. Organisational Behavior and
Human Decision Processes, 50(2), 179–211.
4. Akter, S., Krupnik, T. J., Rossi, F., & Khanam, F. (2016). The inuence of
gender and product design on farmers’ preferences for weather-indexed crop
insurance. Global Environmental Change, 38, 217–229.
5. Ariina, H. F. (2021). Indigenous Perspective on Religious Pluralism: A Tribal
Response. In B. Puri & A. Kumar (Eds.), Re-thinking Religious Pluralism (pp.
157–170). Springer.
6. Atkinson, A., McKay, S., Collard, S., & Kempson, E. (2007). Levels of nancial
capability in the UK. Public Money and Management, 27(1), 29–36.
7. Baker, H. K., Kumar, S., Goyal, N., & Gaur, V. (2019). How nancial literacy
and demographic variables relate to behavioral biases. Managerial Finance,
45(1), 124–146.
8. Białowolski, P., Cwynar, A., Cwynar, W., &Węziak-Białowolska, D. (2020).
Consumer debt attitudes: The role of gender, debt knowledge and skills.
International Journal of Consumer Studies, 44(3), 191–205.
9. Blasch, J., Boogen, N., Daminato, C., & Filippini, M. (2021). Empower the
consumer! energy-related nancial literacy and its implications for economic
decision making. Economics of Energy and Environmental Policy, 10(2), 1–2.
FINANCIAL LITERACY ON ECONOMIC SUSTAINABILITY AMONG
203
10. Brent, D. A., & Ward, M. B. (2018). Energy eciency and nancial literacy.
Journal of Environmental Economics and Management, 90(July), 181–216.
11. Brundtland, G. H. (1987). World Commission on Environment and Development:
Our common future. In United Nations.
12. Bucher-Koenen, T., Lusardi, A., Alessie, R., & van Rooij, M. (2017). How
Financially Literate Are Women? An Overview and New Insights. Journal of
Consumer Aairs, 51(2), 255–283.
13. Carpena, F., & Zia, B. (2020). The causal mechanism of nancial education:
Evidence from mediation analysis. Journal of Economic Behavior and
Organization, 177(September), 143–184.
14. Çera, G., Khan, K. A., Mlouk, A., & Brabenec, T. (2021). Improving nancial
capability: the mediating role of nancial behaviour. Economic Research-
EkonomskaIstrazivanja , 34(1), 1265–1282.
204
INFLUENCE OF AGRICULTURAL
SECTOR ON ECONOMIC GROWTH OF
BIMSTEC COUNTRIES
Dr. P. CHELLASAMY
Professor, School of Commerce,
Bharathiar University, Coimbatore
S. KANNAMUDAIYAR
Research Scholar, School of Commerce,
Bharathiar University, Coimbatore
ABSTRACT
Globally Agriculture sector is a back-bone for Indian economy. It permits for
the development of economic growth, increase revenues and satisfaction of food
demand. Here, the present study undergone the relationship between the Agricultural
productivity and the economy growth of BIMSTEC countries. The BIMSTEC
member countries consists of 7 nations namely, Bangladesh, Bhutan, India, Srilanka,
Myanmar, Nepal and Thailand. From the analysis, Bhutan and Nepal had better
performance on economy. Because, in those countries maximum number of peoples
are involving in various agriculture & allied activities and making the economy
growth. Through this unemployment rate, GDP, National Income and Exchange Rate
are raising. The nding of the study shows that agricultural sector are signicant
and has a greater inuence in the economy growth of GDP, National Income and
Exchange Rate. So the study insight to increase the production on the agricultural
sector and to have a maximum growth on economy.
Keywords: BIMSTEC, GDP, National Income, Exchange Rate
Introduction
Agricultural development is one of the most powerful tools to end poverty and to boost
prosperity in all countries.The sector has two to four times more eective in raising
incomes among the poorest compared to other sectors. If agriculture sector stimulates
the economic growth, then that is an opportunity for agricultural production which
INFLUENCE OF AGRICULTURAL SECTOR ON ECONOMIC GROWTH
205
has a positive spillover on their overall growth. BIMSTEC countries is one among
the other developed countries in agricultural production.The Bay of Bengal Initiative
for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional
multilateral organisation. Its members lies in the littoral and adjacent areas of the Bay
of Bengal constituting a contiguous regional unity. BIMSTEC has also established a
platform for intra-regional cooperation between SAARC and ASEAN members. The
BIMSTEC region is home to around 1.5 billion people which constitute around 22%
of the global population with a combined gross domestic product (GDP) of 2.7 trillion
economy. In the last ve years, BIMSTEC Member States has able to sustain an
average 6.5% economic growth trajectory despite global nancial meltdown.The fact
that the natural and human resources are abundant in BIMSTEC countries which can
give their countries a high absolute advantage if these resources are used eciently.
BIMSTEC countries has Various agricultural policies including land reforms
to improve their agricultural production, and by subsidizing these resources which
helps to promote and assist both small- and large-scale farmers. Recently, Irrigation
systems and smart agriculture has been adopted to develop agriculture sector and to
raise country’s economic growth. Through this sector, the employment opportunities
are been created and GDP, national income, exchange rate and output of agricultural
production will be raised.
Review of Literature
Bakari and Mabrouki (2018) examined the relationship between agricultural trade
and economic growth in 4 countries of North Africa over the period 1982- 2016.
They used the xed and random eect model for the variables of GDP, gross xed
capital formation, agricultural exports, and agricultural imports. They established that
agricultural trade has a positive correlation with GDP, and they accepted the xed-
eect model with Hausman test, so this model indicates that all exogenous variables
have a positive inuence on economic growth, except the agricultural import which
had an signicant sign, so an increase by 1% in the agricultural exports may rise
the level of GDP by 0.21%. They said also that there’s a need to encourage the
development and the investments in the agricultural sector to cover the value of
imports (especially manufactural imports).
Salah Eddine Sari Hassoun (2019) The agricultural sector is important to any
economies in the world; it permits the development of economic growth, increase
revenues and satisfaction of food demand. In this paper, we studied the relationship
between agriculture value added (LNADA), food production index (LNFPI), and
economic growth (LNGDP) in 8 MENA countries over the period of 1975-2014
with using a panel econometric approach and panel Granger causality. We found
with pooled least squares with xed-eects, FMOLS and DOLS models that there’s a
positive inuence of agriculture value added on economic growth in pooled data and
there’s bidirectional causality between LNGDP and LNADA, and among LNADA
and LNFPI, and we found also that there’s unidirectional causality running from
LNFPI to LNGDP.
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
206
Statement of Problem
Agriculture sector plays a vital role in the Indian economy for the growth and
welfare of sustainable development in the BIMSTEC countries. Many countries are
suering from climate change, Natural disasters, bio-diversity loss, Soil erosion in
the world. Growth of GDP, National Income, Unemployment rate, Exchange rate are
originating from agricultural and allied activities. BIMSTEC member countries are
sharply decreasing by 2% during this pandemic situation and heavy rainfall, Thus
this cause deteriorate the overall economic growth and touched 6.4 percent decline
of agricultural production. Hence, eect of agricultural production is less and thee
agricultural products reaches the maximum, which aects the economy as a whole for
BIMSTEC countries. Hence, the study attempts to evaluate the impact of agricultural
productivity on economic growth of BIMSTEC countries.
Data and Methodology
The study is analytical in nature. The aim of the research was to investigate the impact
of Agricultural productivity on BIMSTEC countries. The BIMSTEC countries are
India, Srilanka, Bangladesh, Bhutan, Nepal, Thailand and Myanmar . The researcher
selected the period of study from 2016- 2020. To study the impact of Agricultural
sector on economic growth , the researcher used economic variables like GDP,
National Income and Exchange Rate. The sources of data were collected from the
world bank website.
ANALYSIS AND INTERPRETATION
H0 : There is no signicant relationship exists between Agricultural Production
and Economic Factors.
Countries GDP National Income Exchange Rate
Variable r Sig. r Sig. r Sig.
Bangladesh -. 596 . 289 . 999 . 000 . 846 . 041
Bhutan -. 824 . 004 . 926 . 024 . 703 . 186
India -. 736 . 044 . 873 . 049 . 696 . 191
Srilanka -. 222 . 719 . 288 . 638 -. 318 . 002
Myanmar -. 359 . 051 . 233 . 706 . 764 . 133
Nepal -. 058 . 026 . 869 . 048 . 620 . 004
Thailand -. 447 . 450 . 871 . 054 -. 863 . 046
Bangladesh - The table express the relationship between agricultural production
and economic factors. National Income and Exchange rate of Bangladesh has
signicant relationship on agricultural production, whereas GDP is 0.289 which is
more than the signicant value 0.05 so there is no relationship between agricultural
production in Bangladesh. Hence the null hypothesis is accepted.
INFLUENCE OF AGRICULTURAL SECTOR ON ECONOMIC GROWTH
207
Bhutan - In here, the table express the relationship between agricultural
production and economic factors. GDP and National Income of Bhutan has signicant
relationship on agricultural production, whereas Exchange rate has 0.186 which is
more than the signicant value 0.05, so there is no signicant relationship between
agricultural production of Bhutan. Hence the null hypothesis is accepted.
India - In here, the table express the relationship between agricultural production
and economic factors. GDP and National Income of India has signicant relationship
on agricultural production, whereas Exchange rate has 0.191 which is more than the
signicant value 0.05, so there is no signicant relationship between agricultural
production of India. Hence the null hypothesis is accepted.
Srilanka - In here, he table express the relationship between agricultural
production and economic factors. Exchange Rate of Srilanka has signicant
relationship on agricultural production, whereas GDP and National Income has 0.719
and 0.638 which is more than the signicant value 0.05, so there is no signicant
relationship between agricultural production of Srilanka. Hence the null hypothesis
is accepted.
Myanmar - In here, the table express the relationship between agricultural
production and economic factors. GDP of Myanmar has signicant relationship on
agricultural production, whereas National Income and Exchange rate has 0.706
and 0.133 which is more than the signicant value 0.05, so there is no signicant
relationship between agricultural production of Myanmar. Hence the null hypothesis
is accepted.
Nepal - In here, the table express the relationship between agricultural production
and economic factors. All economic factors i.e, GDP, National Income, Exchange
Rate of Nepal are less than signicant value 0.05, so there is a signicant relationship
on agricultural production, Hence the null hypothesis is Rejected.
Thailand - The table express the relationship between agricultural production
and economic factors. National Income and Exchange rate of Myanmar has signicant
relationship on agricultural production, whereas GDP has 0..450 which is more than
the signicant value 0.05, so there is no signicant relationship between agricultural
production of Myanmar. Hence the null hypothesis is accepted.
Multiple Regression Analysis
COUNTRIES R R Square Std. Error Durbin
Watson
F Sig
Bangladesh 1. 000 1. 000 0. 7102 3. 486 4. 54 0. 001
Bhutan 0. 968 0. 937 24. 753 3. 323 4. 93 0. 317
India 0. 885 0. 783 41. 523 3. 450 1. 20 0. 001
Srilanka 0. 932 0. 869 27. 798 3. 082 2. 22 0. 450
Myanmar 0. 985 0. 971 3. 7764 3. 221 11. 012 0. 504
Nepal 0. 913 0. 834 47. 388 2. 607 1. 671 0. 019
Thailand 0. 993 0. 986 9. 2012 3. 554 23. 81 0. 000
ECONOMIC EMPOWERMENT OF TINY AGRICULTURAL SECTOR IN INDIA
208
The above table describes the impact of agricultural production on economic
factor using multiple regression analysis. The table depicts the R square value of
BIMSTEC countries is 1.00, 0.93, 0.78, 0.86, 0.97, 0.83 and 0.98; which indicates
that 100, 93, 78, 86, 97, 83 and 98 percent variation in agricultural production on
economic factor of BIMSTEC member countries.
The P value of F-statistic of Bangladesh, India, Nepal and Thailand is less than
signicant value 0.05. So the null hypothesis is rejected and there is a signicant
impact on agricultural production. And P value of F-statistic of Bhutan, Srilanka and
Myanmar is more than signicant value 0.05. So the null hypothesis is accepted and
there is a no signicant impact on agricultural production on economic factors of
BIMSTEC member countries.
Suggestions
●Among the BIMSTEC member countries, Bhutan and Nepal had better
performance on economy, Because in both the country maximum number of
peoples are involving in agriculture and making the growth on economy.
●Srilanka and Myanmar need to improve their country’s agriculture sector by
implementing policies like establishing long-term sustainable development
mechanism of agriculture and enhancing agricultural supporting and protection
system for farmers, so that both country can give their level of growth among the
other countries.
Conclusion
Globally Agriculture sector is a back-bone of economy. In BIMSTEC member
countries also the agriculture sector plays a vital role on their economy growth. As
a large amount of farm inputs, such as machinery and pesticides are imported, so
that exchange rates and GDP will aect those growth. From this study it is clear
that agricultural sector on BIMSTEC member countries has an impact on Economic
growth. The nding of the study shows that agricultural sector are signicant and has
a greater inuence in the economy growth of GDP, National Income and Exchange
Rate. So the study insight to increase the production on the agricultural sector and to
have a maximum growth on economy.
References
1. Anitha, M. P., & Vijai, C. (2021). Green Marketing: Benets and Challenges.
European Journal of Molecular & Clinical Medicine, 7(11), 2020.
2. C, PARAMASIVAN & Subbiah, Rajaram & Professor, Assistant. (2016).
Jeevan Mangal Micro Insurance in India-A Performance Approach in South
Zone. International Journal of Trend in Research and Development. 3. 320-323.
3. Chester, J. R. E., & Rajaram, S. ORGANISATIONAL PROFILE OF WOMEN
OWNED MICRO ENTERPRISES IN KANIYAKUMARI DISTRICT. Health
care, 8, 6.
INFLUENCE OF AGRICULTURAL SECTOR ON ECONOMIC GROWTH
209
4. Chitkara, B., & Mahmood, S. M. J. (2019, November). Importance of web
analytics for the success of a startup business. In International Conference on
Recent Developments in Science, Engineering and Technology (pp. 366-380).
Springer, Singapore
5. Insurance, M. (2016). Paramasivan C and Rajaram S.
6. Kour, S., & Sharma, M. (2020). Impact of Self-ecacy on Entrepreneurial
Intentions: Role of Self-regulation and Education. In Sustainable Business
Practices for Rural Development (pp. 169-189). Palgrave Macmillan, Singapore.
7. Muthusamy, S. (2017). Empowering Transgenders Community through
Education.
8. Mutôa, R. F. A. (2018). Avaliação da satisfação dos turistasnacidade de
Inhambane.
9. Naidu, V. K., & Paramasivan, C. (2015). A Study on Green Banking Trends in
India. SELP Journal of Social Science, 4(10), 2349-1647.
10. Paramasivan, C., & Kamaraj, R. (2015). Commercial Bank’s Performance on
Pradhan Mantri Jan Dhan Yojana. International Journal of Scientic Research
and Education, 3, 3595-3603.
11. Paramasivan, C., & Muthusamy, S. (2016). Emerging trends in new start-up
technopreneurs. Journal of Business Management, 2(7).
12. Paramasivan, C., & Pasupathi, R. (2017). A study on growth and performance
of Indian agro based exports. International Journal of Humanities and Social
Science Research, 3(9), 1-5.
13. Paramasivan, C., & Rajaram, S. (2015). JEEVAN MADHUR MICRO
INSURANCE IN SOUTH ZONE-A BIRDS EYE VIEW STUDY.
14. Pilelienė, L., &Grigaliūnaitė, V. (2016). The index of tourist satisfaction with
Lithuania. European journal of tourism, hospitality and recreation, 7, 30-39.
15. Priyadharshini, J., & Muthusamy, S. (2015). A survey on investors’ favourite
investment avenues in Salem. International Journal of Commerce (IJC), 2(2).
16. Priyadharshini, J., & Muthusamy, S. (2016). Green Marketing: Solar Energy
Opportunities and Challenges in India. International Journal of Research &
Business Innovation, 4(1).
17. S.Rajaram (2016) Prole of Micro Insurance Products-Individual v/s Group
Categories, Economic Challenger., pp.66-70
18. Selladurai, M. (2020). Evolution of Technopreneurial Entrepreneurs in the
COVID-19 Pandemic Situation.
19. Selladurai, M. (2021). Performance of Agro Based Industries in India with
Special Reference to Sugar Industry.
20. Subbiah, Rajaram. (2020). AAM AADMI BIMA YOJANA MICRO
INSURANCE PERFORMANCE ANALYSIS IN SOUTH ZONE.
21. Subbiah, Rajaram. (2020). ANALYTICAL STUDY ON VISIBLE BALANCE
OF PAYMENT IN INDIA. 40. 129-132.
210
AUTHOR BIOGRAPHIES
Dr.S.Rajaram is working as an Assistant Professor in the
Department of Commerce, St. Joseph University, Nagaland.
He studied under graduate degree from G.Venkadaswamy
Naidu College, Kovilpatti. He has completed post graduate
degree Sri Ramasamy Naidu Memorial College, Sattur, He
has completed M.Phil. Degree from St. Xavier College,
Palayamkottai and successfully completed Ph.D. from Thanthai
Periyar Government Arts and Science College, (Autonomous)
Aliated to Bharathidasan University, Tiruchirappalli. He also obtained M.B.A.
(Finance) from Periyar University, Salem. He received Doctoral Fellowships from
ICSSR for his innovative research activities. He received Best Research Award
from IARA and Young Scientist Awarded supported by DRDO, DST-SERB, INSA,
CSIR. He received sponsors from ICSSR and NABARD for organizing national level
conferences. He also acted as a resource person in various academic events. He is
having over 6 years of teaching experience.
Dr.M.Selladurai is an Assistant Professor of Commerce,
Karunya Institute of Technology and Sciences, Coimbatore.
He gained his UG, PG and M.Phil from AVS College of Arts &
Science, Salem and the Doctoral Degree under the guidance of
Dr.C.Paramasivan from Periyar E.V.R. College (Autonomous),
aliated to Bharathidasan University, Tiruchirappalli. He has
more than 8 years of teaching experience. He received funds
from EDII, Gujarat; NHRC, New Delhi and IIC MoE to
organize programmes. He is an active life member of Indian Commerce Association,
Indian Accounting Association and IARA. He received Best Researcher Award
and Young Scientist Award to his credit. He acted as Resource Person for various
academic events like conference, workshop, guest speaker etc. He authored a book
titled “Technopreneurship in India” and published more than 30 research papers in
various national and international reputed journals and also participated in numerous
workshops and faculty development programmes so far. He organized more than 100
academic events for the empowerment of student community.
AUTHOR BIOGRAPHIES
211
Dr.R.Nandakumar, obtained a Ph.D in Zoology (Human
Genetics) from Bharathidasan University, Tiruchirappalli India
and M.Ed., from Tamil Nadu Teachers Education University,
India. Presently he is an Assistant Professor, Department of
Zoology, St. Joseph University, Nagaland, India. Nandakumar is
a member of Academic Council, St. Joseph University, Nagaland,
India. There he is a Basic Medical Scientist Representative and
Member of Secretary (Institutional Human Ethical Committee),
St. Joseph University, Nagaland. He has been awarded with Best Faculty Award by
Indian Academic Researches Association, India. His current research interests in the
areas of Human Molecular Genetics, Populations Genetics and DNA barcoding in
animals. He published more than 21 research papers in these areas and got several
awards for outstanding publications. He published 5 books in the area of Life Science.
Presently, he is an Associate Editor of International Journal of Pharmacognosy &
Chinese Medicine (IPCM) and serving as Editorial Board Member & Reviewer of
several journals of international repute.
