Soil Report 2010
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State of India’s Livelihoods Report 2010 ii STATE OF IND I A ’S LI VE li HOOD S REPO R T 2010 State of India’s Livelihoods Report 2010 The 4P Report Edited by Sankar Datta Vipin Sharma Copyright © ACCESS Development Services, 2010 All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. Jointly published in 2010 by SAGE Publications India Pvt Ltd ACCESS Development Services B1/I-1 Mohan Cooperative Industrial Area 28, Hauz Khas Village Mathura Road, New Delhi 110 044, India New Delhi 110 016 www.sagepub.in www.accessdev.org SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320, USA SAGE Publications Ltd 1 Oliver’s Yard, 55 City Road London EC1Y 1SP, United Kingdom SAGE Publications Asia-Pacific Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Published by Vivek Mehra for SAGE Publications India Pvt Ltd, typeset in 10/13 pt Minion by Star Compugraphics Private Limited, Delhi and printed at Rajkamal Electric Press, Kundli, Haryana. Library of Congress Cataloging-in-Publication Data Available ISBN: 978-81-321-0587-9 (PB) The SAGE Team: Rekha Natarajan, Aniruddha De, Sanjeev Kumar Sharma and Umesh Kashyap Contents List of Tables vii List of Figures ix List of Boxes xi List of Abbreviations xiii Preface xix Acknowledgements xxi 1. Overview of Livelihoods Situation 1 Sankar Datta and Vipin Sharma 2. Livelihoods in Agriculture—Status, Policies and Prospects 15 Trilok Singh Papola 3. Greening India through MGNREGA—Convergent Action for Benefits beyond Employment Generation 33 Suryamani Roul 4. New Generation Initiatives in Agri-based Livelihoods—Five Successful Private Sector Initiatives 51 Pradeep Kumar Mishra 5. Financing Agriculture—Emerging Scenario 63 Biswa Bandhu Mohanty 6. Agriculture Marketing—From Livelihoods to Enterprise 87 Reshma Anand 7. Climate Change and Agriculture—Challenges and Opportunities in India 105 Shailesh Nagar and Jayesh Bhatia About the Editors and Contributors 125 vi STATE OF IND I A ’S LI VE li HOOD S REPO R T 2010 List of Tables 1.1 Top nine commodities produced in India and its world ranking 2 1.2 Normal (average of 2003–04 to 2007–08) area, production and yield of major crops in India 3 1.3 Top 10 exports from India 3 1.4 Share of population engaged in agriculture and agriculture’s contribution to GDP in India and the United States (n.d.) 3 1.5 Growth rate of output of different sub-sectors of agriculture: 1993/94 prices 3 1.6 Contributions of various sectors in the Indian GDP (percentage) 4 1.7 Growth rate of Indian GDP and agriculture 4 1.8 Profitability of crops in Orissa over the years 4 1.9 Per capita net availability of food grains (grams per day) in India 6 1.10 Land holdings in India 7 1.11 Land use classifications in India (thousand hectares) 7 1.12 Growth in Indian microfinance sector 8 2.1 Incidence of poverty among agricultural workers and rural population: 2004–05 16 2.2 Average monthly income and consumption expenditure (`) per farmer household (2002–03) 17 2.3 Loans by source and purpose (%) 17 2.4 Distribution of agricultural households by main activity and size of operational holdings—2004–05 (%) 22 2.5 Changes in size distribution of operational holdings (%) 22 3.1 An overview of performance of MGNREGA 38 3.2 Areas of convergence and activities in four select districts of AP 47 3.3 Main benefits for small and marginal farmers from MGNREGA 50 5.1 Debt from institutional sources as per land holding classes 66 6.1 Agriculture sector: Key indicators at constant prices (2004–05) (%) 88 6.2 Status of implementation of APMC Act in India 93 6.3 Public and private investment in agriculture and allied sector at 2004–05 prices 94 6.4 Agri-produce sourcing operations of key companies (contract farming, direct purchase and PPP models) 99 6.5 Indian food industry: Key statistics 101 7.1 Share of drylands in All-India cropped area, 1989–90 106 7.2 Share of dryland main workers in total workforce, All-India, 1991 106 7.3 Climate change and agriculture in India: Findings from various studies 108 7.4 Climate change hazards, impacts, micro-level strategies, and actions for adaptation to climate change 117 viii STATE OF IND I A ’S LI VE li HOOD S REPO R T 2010 7.5 Benefits of MGNREGS with respect to climate change adaptation and mitigation in India 118 7.6 Programme outputs and their potential for climate change 119 7.7 Changes in land use and its impact 119 7.8 Positive impacts of NRM interventions on agriculture-based livelihoods 120 7.9 Key successes in WORLP related to climate change adaptation in agriculture 121 List of Figures 1.1 Grain orientation in irrigated and rainfed areas from 1960 onwards 6 7.1 Distribution of GHG emissions from India in 2007 110 7.2 Sources of GHGs within agriculture sector 111 7.3 Number of papers on climate change published in peer reviewed journals 115 x STATE OF IND I A ’S LI VE li HOOD S REPO R T 2010 List of Boxes 3.1 Salient features of MGNREGA 35 3.2 Are benefits of MGNREGA reaching people? 39 3.3 Findings of the planning commission’s mid-term appraisal report on rural development programmes 40 3.4 Empowerment of women workers through MGNREGS: A study in four states 40 4.1 The SRI concept 55 4.2 The PTD process 58 5.1 Reforms in short term cooperative credit structures (STCCS) New hope for agri-finance 66 5.2 Operation Barga: Share croppers empowerment in West Bengal through participatory land reforms strategy 71 5.3 Bhoomi in Karnataka: Bringing sea-change in land records management system 72 5.4 Soil health card: A pioneering initiative of the Gujarat government 72 5.5 Samanwita: Commercial banks collaborate with community-based organizations for community development 72 5.6 Branding products of Farmers/SHGs—marketing perspectives 76 5.7 Vegetable and fruit promotion council, Kerala (VFPCK): Price discovery for SHGs through a farmers’ market model 76 5.8 Financial assistance for strengthening supply chain system: Fruit and vegetable auction market (SFVAM), Bangalore 77 5.9 Supply chain integration in horticulture 79 5.10 ICICI Bank’s warehouse receipt-based financing 79 5.11 ITC’s E-Choupal: Linking business with societal purpose 80 5.12 Mobile vans for knowledge management (KM) of farmers 81 6.1 Interstate barriers to trade 91 6.2 Cultivating communities 96 6.3 Suminter Organics: A case study of contract farming 97 6.4 Prominent private equity in agribusinesses 100 6.5 Cooperative paddy cultivation in Thrissur, Kerala 101 6.6 Dharmapuri Precision Farmers Agro Services: A local farmer enterprise model 102 7.1 Innovation in Micro-insurance 116 xii STATE OF IND I A ’S LI VE li HOOD S REPO R T 2010 List of Abbreviations ABC Agri Business Centre AC Agri Clinics ACI Agri Credit Intensive Branches ADWDRS Agriculture Debt Waiver and Debt Relief Scheme AEZ Agri Export Zones AFCB Adat Farmers Cooperative Bank AFP Agro Food Park AIFOF All India Federation of Organic Farming AIM Alternate Implementation Model AME Agriculture Man Ecology Foundation ANBC Adjusted Net Bank Credit AP Andhra Pradesh APC Agricultural Prices Commission APEDA Agricultural and Processed Food Products Export Development Authority APMC Agricultural Produce Market Committee APMIP AP Micro Irrigation Project APPS Ananthapur Paryavarana Parirakshana Samithis ARF Automatic Refinance Facility ASCI Administrative Staff College of India, Hyderabad ATM Automated Teller Machine ATMA Agricultural Technology Management Agency BAIF Bharatiya Agro Industries Foundation BC Business Correspondent BDS Business Development Services BF Business Facilitator BIPCL Banana India Producer Company Ltd BNRGSK Bharat Nirman Rajiv Gandhi Sewa Kendra BOOT Build Own Operate Transfer BOP Bottom of the Pyramid BOT Build Operate Transfer BPL Below Poverty Line BRGF Backward Region Grant Fund CACP Commission on Agricultural Costs and Prices CAGP IV Carlyle Asia Growth Partners IV CB Commercial Banks CBO Community Based Organizations CCI Cotton Corporation India CCS Cooperative Credit Structure CDS Current Daily Status CEGC Central Employment Guarantee Council xiv STATE OF IND I A ’S LI VE li HOOD S REPO R T 2010 CH4 Methane CIBIL Credit Information Bureau (India) Limited CIIFAD Cornell International Institute for Food, Agriculture and Development CLDP Comprehensive Land Development Project CMP Common Minimum Programme CMSA Community Managed Sustained Agriculture CO2 Carbon Dioxide CPR Common Property Resources CRD Commissioner Rural Development CSA Community Supported Agriculture CSC Common Service Centres CSIR Council for Scientific and Industrial Research CSO Civil Society Organization CSP Customer Service Point D&B Dun and Bradstreet Information Services India Pvt. Ltd DCCB District Central Cooperative Banks DDP Desert Development Programme DfID Department for International Development DMI Directorate of Marketing and Inspection DPAP Drought Prone Area Programme DPFAS Dharmapuri Precision Farmers Agro Services DPIP District Poverty Initiatives Programme DRDA District Rural Development Agency EAS Employment Assurance Scheme EXIM Bank Export Import Bank of India FA Farmers Associations FAO Food and Agriculture Organization FC Farmers Clubs FCI Food Corporation of India FDI Foreign Direct Investment FFS Farmer Field Schools FIEC Farm Information Exchange Clubs FIF Financial Inclusion Fund FIP Financial Inclusion Plan FIPF Farm Innovation and Promotion Fund FITF Financial Inclusion Technology