COMMITTEE ON AGRICULTURE (2011-2012) 28 FIFTEENTH LOK SABHA MINISTRY OF AGRICULTURE (DEPARTMENT OF AGRICULTURE & CO-OPERATION) DEMANDS FOR GRANTS (2011-2012) {Action Taken by the Government on the Observations/ Recommendations contained in the Twenty-Second Report of the Committee on Agriculture (2010-2011)} TWENTY- EIGHTH REPORT LOK SABHA SECRETARIAT NEW DELHI February 2012/Magha, 1933 (Saka) 1 TWENTY - EIGHTH REPORT COMMITTEE ON AGRICULTURE (2011-2012) (FIFTEENTH LOK SABHA) MINISTRY OF AGRICULTURE (DEPARTMENT OF AGRICULTURE & COOPERATION) DEMANDS FOR GRANTS (2011-2012) (Action Taken by the Government on the Observations/ Recommendations contained in the Twenty - Second Report of the Committee on Agriculture (2010-2011) Presented to Hon’ble Speaker Lok Sabha on 16.02.2012 Presented to Lok Sabha on 29.03.2012 Laid on the Table of Rajya Sabha on 29.03.2012 LOK SABHA SECRETARIAT NEW DELHI February 2012/ Magha, 1933 (Saka) 2 COA No. 251 Price: Rs. © 2012 By Lok Sabha Secretariat Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Fourteenth Edition) and Printed by 3 <CONTENTS> PAGE COMPOSITION OF THE COMMITTEE……………………………… (iii) INTRODUCTION………………………………………………………… (v) CHAPTER I Report ………………………………………… 1 CHAPTER II Observations/Recommendations which have been accepted by the Government …………… 19 CHAPTER III Observations/Recommendations which the Committee do not desire to pursue in view of the Government’s replies ………………….. 43 CHAPTER IV Observations/Recommendations in respect of which replies of the Government have not been accepted by the Committee …………. 44 CHAPTER V Observations/Recommendations in respect of which final replies of the Government are still awaited ……………………………………. 51 ANNEXURES I. Details of suggestion of Agriculture Finance Corporation in the Modified ATMA Scheme. 56 II. Minutes of the 23rd Sitting of the Committee 58 held on 10 February, 2012. III. Analysis of Action Taken by the Government on the 60 Recommendations contained in the Twenty-Second Report (Fifteenth Lok Sabha) of the Committee on Agriculture (2010-2011). (i) 4 COMPOSITION OF THE COMMITTEE ON AGRICULTURE (2011-12) Shri Basudeb Acharia - Chairman MEMBERS LOK SABHA 2. Shri Narayansingh Amlabe 3. Shri K.C. Singh ‘Baba’ 4. Shri Thangso Baite 5. Smt. Shruti Choudhary 6. Smt. Ashwamedh Devi 7. Shri Biren Singh Engti 8. Shri Anant Kumar Hegde 9. Shri Deepender Singh Hooda 10. Shri Sk. Nurul Islam 11. Shri Naranbhai Kachhadia 12. Shri Premdas 13. Shri Surendra Singh Nagar 14. Shri Devji M. Patel 15. Shri Vitthalbhai Hansrajbhai Radadiya 16. Shri Nripendra Nath Roy 17. Shri Jagdish Thakor 18. Shri Laxman Tudu 19 Shri D. Venugopal 20. Shri Hukmadeo Narayan Yadav 21. Shri Ramakant Yadav RAJYA SABHA 22. Shri Shashi Bhusan Behera 23. Shri Narendra Budania 24. Shri Satyavrat Chaturvedi 25. Shri A. Elavarasan 26. Shri Vinay Katiyar 27. Shri Mohd. Ali Khan 28. Shri Upendra Kushwaha 29. Shri Bharatsinh Prabhatsinh Parmar 30. Shri Rajpal Singh Saini 31. Shri S. Thangavelu (iii) 5 SECRETARIAT 1. Shri Deepak Mahna - Joint Secretary 2. Shri P.V.L.N. Murthy - Director 3. Shri C. Vanlalruata - Deputy Secretary (iv) 6 INTRODUCTION I, the Chairman, Committee on Agriculture (2011-2012) having been authorized by the Committee to submit the report on their behalf, present this Twenty- Eighth Report on Action Taken by the Government on the Observations/Recommendations contained in the Twenty-Second Report of the Committee on Demands for Grants (2011-2012) pertaining to the Ministry of Agriculture (Department of Agriculture and Cooperation). 2. The Twenty-Second Report of the Committee on Agriculture (2010-2011) on Demands for Grants (2011-2012) pertaining to the Ministry of Agriculture (Department of Agriculture and Cooperation) was presented to Lok Sabha and laid on the table of Rajya Sabha on 29 August, 2011. The Action Taken Replies on the Report were received on 26 December, 2011. 3. The Report was considered and adopted by the Committee at their Sitting held on 10 February, 2012. 4. An analysis of the Action Taken by the Government on the Observations/Recommendations contained in the Twenty-Second Report of the Committee is given in Annexure- III. NEW DELHI; BASUDEB ACHARIA 10 February, 2012 Chairman, 21 Magha, 1933 (Saka) Committee on Agriculture (v) 7 CHAPTER I Report This Report of the Committee on Agriculture deals with the action taken by the Government on the Recommendations contained in the Twenty Second Report (Fifteenth Lok Sabha) of the Committee on Agriculture on Demands for Grants – 2011-12 pertaining to the Ministry of Agriculture (Department of Agriculture and Cooperation) which was presented to Lok Sabha and laid on the Table of Rajya Sabha on 29 August, 2011. 2. The Ministry of Agriculture (Department of Agriculture & Co-operation) have furnished Action Taken Replies in respect of all the 18 recommendations/observations contained in the Report. These have been categorised as under: (i) Observations/Recommendations that have been accepted by the Government : Recommendation Nos. 1.4, 2.27, 2.28, 2.29, 3.40, 3.41, 3.43, 3.45, 3.46, 3.48, 3.49 and 3.51 (ii) Observations/Recommendations which the Committee do not desire to pursue in view of the Government’s reply: Recommendation Nos. Nil (iii) Observations/Recommendations in respect of which action taken replies of the Government have not been accepted by the Committee Recommendation Nos. 2.26, 3.42, 3.44, and 3.50 (iv) Observations/Recommendations in respect of which final replies of the Government are still awaited. Recommendation Nos. 3.47 and 3.52. 8 3. The Committee trust that utmost importance would be given to implementation of the observations/recommendations accepted by the Government. In cases, where it is not possible for the Department to implement the Recommendations in letter and spirit for any reason, the matter should be reported to the Committee with reasons for non-implementation. The Committee desire that further Action Taken Notes on the Observations/Recommendations contained in Chapter-I and Chapter V of this Report be furnished to them at an early date. 4. The Committee will now deal with the action taken by the Government on some of the Recommendations in the succeeding paragraphs. PRESENT STATE OF INDIAN AGRICULTURE (Recommendation Para No. 2.26) 5. The Committee had noted that despite six decades of planning, a plethora of schemes and various measures initiated by successive Governments all is not well with Indian Agriculture as is evident from the fact that that although agriculture sector is the principal source of livelihood for more than 58% of the population, yet its contribution to the national GDP has declined to 14.4% and the gap between the minority of economically well off farmers and the majority of economically weak farmers has widened as is epitomized by various incidents of farmers suicides in the country. Having further noted that reckless use of chemical fertilizers was resulting in declining soil health and resulting in instances of soil poisoning thus leading to a crisis situation, the Committee opined that Indian Agriculture is in need of a stimulus, and desired the Government and the Planning Commission to keep this in mind while chalking out the 9 framework for the Twelfth Five Year Plan so as to focus on inclusive growth and breathe new life into agriculture by according it the priority it rightly deserves. 6. The Department of Agriculture & Cooperation, in their action taken note have stated that performance of the farm sector (agriculture & allied activities) in the Eleventh Plan is better than in the Tenth Plan. The farm sector has grown at an average rate of around 3.2 percent during the first four years of the Eleventh Plan. Provided conditions remain favourable in 2011, the farm sector may achieve overall growth of about 3.8% during the Eleventh Plan. This is despite the fact that the Country suffered drought in several States in 2009-10 and 2010-11. Overall, investment in agriculture sector has increased substantially from 10% of agri-GDP in 2002-03 to 21% of agri-GDP in the current fiscal year, which is a healthy sign. Since agriculture is a ‘State’ subject, a lot depends upon how the State machinery substantiates the efforts of Government of India in increasing agricultural production in the Country. 7. The Committee note that the measures initiated by the Department resulted in the farm sector witnessing an average growth rate of about 3.2 percent during the first four years of the Eleventh Plan. While sharing the optimism of the Department that subject to conditions, the farm sector may achieve overall growth rate of about 3.8 percent during the Eleventh Plan they would, however, like to await the final figures as the Country witnessed drought in several States in the years 2009-10 and 2010-11. Statistics apart, the pitiable condition of the majority of the farming community causes them deep anguish as farmers are still 10 committing suicides in different parts of the Country due to varied reasons. What further aggravates their anguish is the stance of the Department that Agriculture being a State subject a lot depends upon how the State machinery substantiates the efforts of the Government of India in increasing agricultural production in the country. They are of the firm opinion that if Indian Agriculture has to reinvigorate itself and break free from the shackles presently hampering its growth, the Central and the State Governments have to work in unison and not work with plurality of objectives as is evident now. They, therefore, impress upon the Central and State Government’s to strive for a commonality of goals during the Twelfth Plan and work in unison to ensure that Indian Agriculture is finally revitalized. This would ensure unanimity in policy resulting in a focused approach towards the problems besetting Agriculture in India and ensure its effective and expeditious solution.