Introduction
Chapter- 1 || 2 || 3 || 4 || 5 || 6 || 7 || 8 || 9 || 10 || 11 || 12 || 13 || 14 || 15 || 16 || 17 || 18 || 19 || 20 || 21 || 22 || 23 || 24 || 25 || 26 || 27 || 28 || 29 || 30 || Conclusion || Appendix

Chapter 13:
PROGRAMME FOR AGRICULTURE

The first five year plan accorded pride of place to programmes for agriculture and community development. This was a natural priority in a plan seeking to raise the standard of living of the mass of the people, specially in rural areas, but it was also justified in the special circumstances of shortage and inflation which existed when the plan was formulated. More than any other factor, the increase in agricultural production which has taken place since 1952-53 has helped to end inflation, stabilise the economy and prepare the way for a higher rate of development during the second five year plan. The index of agricultural production, with 1949-50 as base, stood at 96 in 1950-51. It stood at 114 in 1953-54 and 1954-55, and is expected to be 115 in 1955-56. During the first plan, the national product increased by 18 per cent, and income in the agricultural sector increased in the same proportion. Increase in agricultural production also stimulated growth in other sectors of the economy.

Review of the First Plan

2. The first five year plan envisaged the following increases in agricultural production:—

.Base year for foodgrains is 1949-50; for others 1950-51.

These targets of additional production, especially of foodgrains, were worked out in terms of the contribution anticipated from different programmes such as irrigation, use of larger quantities of fertilisers, supply of improved seeds and programmes of land reclamation and development. In other words, it was reckoned that if the developmental measures which the plan provided for were taken the production potential would increase to the extent indicated. In given years the actual levels of production for different commodities would necessarily vary with weather conditions and other factors such as the relative prices for different crops.

3. The course of agricultural production during the first plan is shown in the following statement:—

Partially revised estimate.

It will be seen that during the period of the plan 1953-54 was the year of peak production for foodgrains and 1954-55 for oilseeds and cotton. In the case both of sugarcane and jute 1951-52 was the year of the highest production and although, after a period of decline, production improved towards the end of the plan, the targets which were set were not realised.

4. These trends emerge more clearly from the following statement which sets out the index numbers of agricultural production during the period of the plan for various groups of crops:

(Base: 1949-50=100)

It is significant that the overall index of agricultural production has been maintained at a fairly high level during the past three years. This has been accompanied by some decline in foodgrains which account for about 67 per cent. of the total value of agricultural production. Trends have to be studied over a longer period before firm conclusions can be established.

5. The fact that agriculture depends on several unpredictable factors and agricultural targets must necessarily be in the nature of a tentative approach is illustrated by the actual statistics of increase in the production of individual foodgrains:—

(million tons.)

Of the increase of 7.6 million tons anticipated over the first five year plan it was thought that roughly rice might account for 4 million tons, wheat for 2 million tons, gram and pulses for a million tons and other cereals for 0.5 million tons. The largest increase has occurred in millets and other cereals and the target for wheat production has been realised. On the whole, the expectation in respect of rice has not been fulfilled except in one specially favourable year. Nevertheless, the increase in food production made possible a reduction in imports from the level of 4.73 million tons in 1950 and 3.86 million tons in 1951 to less than a million tons during each of the past two years. This was a distinct advantage to the general economy of the country.

6. With the data available it would not be correct to attempt to relate too closely the progress of production in individual agricultural commodities to the actual progress made from year to year in implementing the programmes of the first five year plan. In the nature of things many factors operate at the same time. It is proposed that the data vearing on agricultural production, during the first five year plan, including the results of crop cutting surveys, should be investigated through a number of intensive and specially designed studies. Among the aspects on which more objective knowledge would be of considerable value in the making of policy and in assessing results, the following may be specially mentioned:

1. production trends in different regions,
2. effects of agricultural production and extension programmes,
3. range of influence of favourable and unfavourable conditions,
4. review of yardsticks of additional production at present in use,
5. yield trends for the principal crops, and
6. cost of various agricultural production and extension measures in relation to the benefits realised.

7. From the limited information available it appears that among programmes of development which have contributed to increase in agricultural production during the first plan, -minor irrigation works, increased use of fertilisers, land reclamation and development and the extension of area under cultivation have been specially significant Minor irrigation programmes were being undertaken for several years before the plan. During the period 1943-44 to 1950-51 programmes of the value of about Rs. 62 crores were approved in pursuance of the grow-more-food campaign and a major portion of these were devoted to minor irrigation. During the first plan about 10 million acres of land are expected to have been brought under irrigation from minor works and about 6.3 million acres from large and medium irrigation schemes. More than half the increase in the area benefiting from minor irrigation occurred during the first two years of the plan. Considerable progress has been made in several States, notably, in Bihar, Uttar Pradesh, West Bengal, Punjab, Assam, Bombay, Madras and Mysore. The benefits of irrigation are realised to a greater extent when combined with the use of fertilisers. During the plan period the consumption of ammonium sulphate has more than doubled, from 275,000 tons before the plan began to 610,000 tons four years later. Special attention has been devoted to spreading the use of the 'Japanese method' of rice cultivation, the area brought within its scope so far being about 1.6 million acres.

8. During the first four years of the first five year plan more than one million acres of land were reclaimed through the Central Tractor Organisation and 1.4 million acres through State tractor organisations. Besides this, about 5 million acres have been developed by cultivators through programmes such as assistance for mechanised cultivation, bunding and levelling and reclamation of land by manual labour. The extension of cultivation has been a larger contributory factor towards increase in production than had been anticipated when the plan was drawn up. Thus, the total cropped area has increased from 326 million acres before the plan to 352 million acres in 1954-55. The area under food crops has risen from 257 million to 272 million acres and under commercial crops from 49 million to about 60 million acres. The area under commercial crops has increased from 15 per cent of the total cropped area to 17 per cent, while the area under food crops has diminished from 79 to 77 per cent of the cropped area. The area under other crops (20 million acres) has shown little change.

Approach In The Second Plan

9. During the first five year plan it was of crucial importance that agricultural programmes must succeed, for no other consideration had equal significance for the stability of the economy as a whole. In the" second five year plan agricultural programmes are intended to provide adequate food to support the increased population and the raw materials needed for a growing industrial economy and also to make available larger exportable surpluses of agricultural commodities. The second five year plan implies, therefore, even more than the first a close inter-dependence between agricultural and industrial development While formulating programmes to achieve these objects, it is necessary to take a long-term view so as to secure the best possible use of material and human resources, ensure balanced development between different branches of agriculture and create conditions for an appreciable increase in rural incomes and standards of living. In framing agricultural programmes it is essential, from the national point of view, to place before the villagers a goal which they should strive to attain. In connection with the preparation of the second five year plan it was stated that this goal should be the doubling, within a period of about ten years, of agricultural production, including food crops, oil-seeds, cotton, sugar cane, plantation and other crops, animal husbandry products, etc.

10. In relation to the food problem the factors to be considered are: (1) increase in the total population, (2) increase in- the urban population, (3) the need to improve per capita consumption, (4) the need to counter possibilities of inflationary pressures resulting from the implementation of the second five year plan, and (5) effects on food consumption of increase in national income and changes in its distribution. The total food requirements in 1960-61 at the present rate of consumption will be 70.5 million tons. By the end of the second plan the rate of consumption is estimated to rise to 18.3 ounces per adult (cereals 15.5 ounces and gram and pulses 2.8 ounces), so that the total food requirements will be 75 million tons. The plan provides for increase in food production of 10 million tons over the next five years. In terms of calories the per adult consumption of food per day, which at present amounts to 2200, is expected to increase by 1960-61 to 2450 as against the minimum of 3000 calories recommended by nutrition experts.

11. Compared to many other countries the rate of cereal consumption in India is relatively high. This is because such energy producing foods as milk and milk products, fruit and vegetables, eggs, fish and meat are far from adequately represented in the common diet. Apart from the question of correct food habits, which is undoubtedly a matter of extreme importance, the output of each of these supplementary foods is at present grossly insufficient. During the second five year plan the aim will be to diversify agricultural production and to shift somewhat the emphasis which has been hitherto placed in a dominant degree on the production of cereal crops. The second plan also provides for programmes for increasing the production of crops like arecanut, coconut, lac, black pepper, cashewnut etc. which did not receive sufficient attention during the first plan.

12. The scope for increasing the area under cultivation is extremely limited. Such increase as may take place in the area under cultivation is likely to increase the production mainly of the coarser grains. As national income increases, there may be a general tendency for demand to shift from the coarser to the superior grains, especially to rice, wheat and maize. In the circumstances, the main source of increase in agricultural production must be increase in yields from more intensive, more efficient and more profitable agricultural production. Although the available data are not always comparable, there is little doubt that the average yields of principal crops like wheat and rice in India are considerably smaller than those current in several other countries. The crop cutting experiments which have been conducted in recent years in different parts of the country show large variations in the average yields of crops between different regions and even within each region. Crop competitions which have been carried on for some time past also afford an indication of levels which can be attained in Indian conditions when the necessary effort and assistance are forthcoming. It is now within the bounds of practical action to bring about a rapid and fairly widespread increase in agricultural yields. This requires more detailed and systematic planning in terms of regions. States, districts and project areas such as has not yet been undertaken. Data derived from crop competitions should be widely publicised, so that each area can set its goals in the light of established facts. To the extent necessary, the scope of crop competitions should be widened. What is require'd is not merely the encouragement of high levels of achievement on the part of individual farmers, but a more comprehensive effort which would raise the general average in each area. Every part of fhe country should have targets of average production for different crops based on a broad classification of physical conditions of irrigation, rainfall, terrain, etc. In pursuance of these targets there should be programmes for raising levels of productivity which go down to individual villages and individual families.

13. Despite the uncertainties to which agriculture is necessarily subject, it is important that a more studied effort to introduce a planned approach to agricultural development should be made. The main elements in agricultural planning are:

1. planning of land use;
2. determination of targets, both long-term and short-term;
3. linking up of development programmes and Government assistance to production targets and the land use plan, including allocation of fertilisers etc. according to plan; and
4. an appropriate price policy.

Each district and, in particular, each national extension and community development project area should have a carefully worked out agricultural plan. This should indicate for villages the targets to be aimed at, the broad distribution of land between different uses and the programme of development. Within the framework of an overall price policy such as has been outlined in an earlier chapter, such local plans will be valuable steps leading to more careful planning for States and regions and for the country as a whole. The crop pattern envisaged by these local plans has in the main to be influenced through such incentives as the provision of irrigation, credit and marketing facilities, provision of fertilisers, and intimate contact with the cultivator on the part of extension workers and especially the village level workers.

14. With the objectives set forth above, the following pattern of outlay for development in the rural sector proposed for the second five year plan:

Agriculture and Community Development

The principal targets of agricultural productionfor the second five year plan are set out in the following statement:

The index numbers represented by these targets are given below: (base 1949-50):—

These targets are in the nature of first estimates derived from calculations of the production potential expected to be added as a result of various developmental programmes. In view of the considerations outlined in paragraph 10 and especially the need to provide adequate safeguards against possibilities of inflation, it is considered that it is both necessary and possible to achieve higher agricultural targets with relatively small adjustments in regard to resources. In particular, through the national extension service it must be the aim to reach every village and" every family and to organise supplies and services and short, medium and long-term finance required for achieving these targets. With a view to fixing higher targets and ensuring their realisation, the Planning Commission and the Ministry of Food and Agriculture propose to undertake further study of agricultural programmes in each State and region with reference to its crop pattern, land and water resources and programmes of development in irrigation, national extension and other fields.

16. Foodgrains.—T1ie target for foodgrains has already been referred to earlier. It is expected that of the increase of 10 million tons in foodgrains, rice may account for 3 to 4 million tons, wheat for 2 to 3 million tons, other cereals for 2 to 3 million tons and pulses for about 1.5 to 2 million tons.

17. Cotton.—To fulfil the textile targets for the second five year plan, the production of raw cotton has to be.raised from 4.2 million bales in 1955-56 to 5.5 million bales in 1960-61. Programmes for the cotton development will continue the measures undertaken during the first five year plan such as provision of hybrid seed, multiplication and distribution of improved seed, grant of loans to cultivators for the purchase of seed and fertiliser and extension and propaganda among the cotton cultivators. Ah important feature of development under the second plan will be the emphasis on increasing the production of long staple varieties particularly in the areas brought under major irrigation projects. The achievements made so far in increasing the production of long staple varieties have been significant and the proportion of these varieties had gone up from 17.5 per cent in 1948-49 to about 37 per cent in 1954-55.

18. Jute.— Before Partition, India had a virtual monopoly in the production and supply of raw jute, jute being always one of India's principle foreign exchange earners. After Partition only about 19 per cent of the total production of raw jute of undivided India came to the share of the Indian Union. While there has been substantial improvement in the production of jute from 1.7 million bales in 1947-48 to about 4 million bales in. 1955-56, much of the additional jute produced in the country during the last few years was grown on marginal lands and was of poor quality, which consequently fetched low prices. The emphasis in the programme for jute production has to be changed from quantity to quality and new jute cultivation has to be undertaken in areas suitable for growing high quality jute. The requirements of the industry for raw jute may be placed at 7.2 million bales if all the mills were to work to full capacity. In addition about 150,000 bales may be treated as extra-factory consumption. It is therefore proposed to provide 5 million bales from internal production and to import the balance. It should be possible to produce the additional quantity of 1 million bales of jute largely through intensive cultivation measures with the ultimate objective of achieving an average yield of 3 bales per acre of good quality jute. The measures proposed in the second plan include the continuation on an expanded basis of the existing jute extension schemes, setting up of seed farms, supply of improved seeds, distribution of seed drills, construction of retting tanks etc. The organization of an extension service for demonstration of improved cultural practices is an important item in the jute developmental programme.

19. Oil seeds.—Oilseeds and vegetable oils besides constituting a source of fat supply in 'the diet of the population are valuable export commodities. The production of the five major oilseeds—groundnut, sesamum, linseed, rape and mustard and castor seed is expected to go up from 5.1 million tons in 1950-51 to about 5.5 million tons in 1955-56 which was the target fixed under the first plan. Under the second five year plan, it is proposed to increase the production of the five major oilseeds to 7 million tons as shown below:—

Clath tons'*

Schemes for the production and distribution of good quality seeds sponsored by the Indian Central Oilseeds Committee during the first plan period have given promising results. It is proposed to popularise these improved seeds on an intensive scale during the second plan. Other schemes included in the plans of states cover application of fertilisers and manures, control of pests and diseases and research for evolving better and new varieties. Arrangements will also be made for improved marketing of oilseeds.

20. In considering the effect of the target of additional oilseeds production on increasing the supply of vegetable fats and vegetable oils, account has to be taken of the production of the other important edible oil, namely, coconut oil, the quantities proposed to be exported, industrial consumption etc. The following table gives the position in respect of the five prin cipal oils as also cotton seed and coconut oils.

(Thousand tons of oil)

This assumes an export target of 5 lakh tons of groundnut and 2 lakh tons of other oils (in terms of seed). Emphasis will also be placed on stepping up the production and export of cotton seed oil and oils from solvent extraction process.

'21. Sugarcane.—The consumption of sugar and gur has increased steadily during recent years; In 1950-51 under conditions of control about 10.7 lakh tons of sugar were consumed. The amount consumed in 1954-55 was about 17 lakh tons. Under the second plan, it is proposed to raise the production of crystal sugar to 22.5 lakh tons and the installed capacity to 25 lakh tons at the end of 1960-61. In order to make available to sugar factories increased quantities. of cane and also to provide for higher gur consumption, additional production of 13 lakh tons ofsugarcane in terms of gur, is aimed at This will raise the total production from 5.8 million tons expected in 1955-56 to 7 :1 million tons in 1960-61, the amount available per adult being 1 : 72 ozs. per day. Schemes for the intensive cultivation of sugarcane include provision of irrigation facilities, establishment of seed nurseries, distribution of disease free and improved varieties of seeds, distribution of manures and fertilisers, control of pests and diseases, organisation of demonstrations and crop competitions. The main emphasis will be on increasing the sucrose content of the cane and ensuring maximum supplies of cane during the crushing season.

22. Coconuts.—India is the second largest coconut. growing country in the world, producing as she does about 3800 million nuts a year. Still the country is deficit to the tune of 40,000 tons in terms of coconut oil. This deficit is expected to go up to 80,000 tons in 1960-61 after allowing for the increased population and possible rise in consumption standards. By undertaking both short-term as well as long-term measures, it is proposed to increase the production of coconuts to 210,000 tons in terms of oil by 1960-61 as against 130,000 tons at present. The short-term programme includes the setting up of demonstration centres to propagate improved methods of coconut cultivation including protection of the crop against pests and diseases. Under the long-term programme the area under coconut will be increased by bringing suitable waste lands, development of nurseries for the distribution of superior varieties of plants etc. It is also planned to increase the yield of coconuts from 30 to 45 nuts per tree.

23. Arecanuts.—As in the case of coconut, the country is also deficit in the supply ofarecanuts, the existing production being 81,000 tons, as compared to the requirements of 118,000 tons at present. After allowing for the increase in population and also a slightly higher rate of consumption at the end of 1960-61, the requirements may be placed at 129,000 tons. But as the arecanut tree takes eight to ten years to bear fruit, extension of area under the crop will yield results only during the third plan period. However, it is proposed to increase the production of arecanut by about 25 per cent through intensive methods of cultivation and by prevention of pests and diseases, supply of quality seedlings, introduction of improved cultural practices etc. Efforts will be directed towards increasing the yield per acre from an average of 658 Ibs. to 820 Ibs. The target of production at the end of 1960-61 may be placed at 99,000 tons. The Indian Central Arecanut Committee has already carried out a survey of waste lands suitable for growing arecanuts and it is intended to investigate and exploit these possibilities fully in the course of the-second plan.

24. Lac.—Lac is the raw material for shellac and seed lac which are important items of export trade. The production of lac during the last few years has varied between 37,000 to 48,000 tons, the expected production in 1955-56 being of the order of 44,000 tons. In formulating the target of additional production, the possibilities of export demand for the commodity as well as competition from lac and from artificial substitutes produced abroad has to be kept in view. The second five year plan aims at stepping up production to 59,000 tons. Emphasis will also be given to the improvement of quality. These objectives are to be attained mainly through the establishment of regional brood farms in different areas, survey of idle host plant and imparting technical knowledge on lac cultivation. It is proposed to organise a lac extension service in important lac growing areas. In addition, it is also proposed to establish air-conditioned and ordinary godowns for storage of stick lac at important marketing centres.

25. Tobacco—Next to U.S.A. and China, India is the largest tobacco producing country in the world. In 1954-55, 250,000 tons of tobacco were produced. The problem which faces tobacco cultivation is not so much of expansion of production as improvement in quality. Due to unfavourable weather conditions, a large proportion of the crop during recent years turned out to be of low grade varieties and it was found difficult to sell it This resulted in the accumulation of stocks and consequent fall in prices. Improvement of quality will be given the highest priority in the programme for the second five year plan, and increase in production as such is not envisaged.

26. Black Pepper.—Black pepper is an important dollar earner and has also considerable local importance in Travancore-Cochin, Malabar and South Kanara. In recent years, however, India has been facing increasing competition from other countries. The lines on which pepper development and research should be organized have been recommended by a special committee. The scheme was started in 1954-55 and is proposed to be intensified during the second five year plan. The objective under the plan is to raise the area under pepper cultivation by about 50,000 acres and to increase production from 26,000 tons to 32,000 tons.

27. Cashew-nut.—Cashew-nut is another important dollar earner. The annual production is about 60,000 tons, the main producing areas being Madras and Travancore-Cochin. Although cashew-nuts are collected on a commercial scale in a few other countries, notably East Africa, the processing of cashew is practically the monopoly of India. In view of the growing competition for the processing of cashew-nuts there is great need for developing the production of cashew-nuts in this country. The Spices Enquiry Committee suggested that the cultivation of cashew-nuts should be undertaken on a plantation basis in the east coast districts of Madras, coastal districts of Konkan and certain other areas on the west coast. Plantations should be encouraged around processing factories. There is also scope for extending cashew-nut cultivation in Madhya Bharat, Mysore, Coorg, Andhra, Orissa/West Bengal and Andamans. It is proposed to increase the production of cashew-nut from 60,000 tons to 80,000 tons by the end of 1960-61.

28. Tea, Coffee and Rubber.—Production and other programmes for tea, coffee and rubber are at present being considered by the Plantations Enquiry Commission. Between 1950 and 1954 tea production has varied from 613 to 644 million pounds and exports from 427 to 470 million pounds. On the whole, it appears that it should be possible to achieve a production target of 700 million pounds and an export target of about 470 to 500 million pounds by the end of the plan. The Coffee Board is engaged in examining a fifteen year development plan for increasing the production of coffee, from 25,000 tons to 48,000 tons. Of the increase about 10,000 tons are proposed to be secured from intensive cultivation and rehabilitation of existing estates and 13,000 tons from reclamation and fresh plantings. A scheme drawn up by the Rubber Board for replanting 70,000 acres of area under rubber at the rate of 7,000 acres a year over a period of 10 years and for bringing 10,000 acres of new land under rubber at 2,000 acres a year is under the consideration of the Ministry of Commerce and Industry. For tea, coffee and rubber, firm development programmes have yet to be approved.

Development Programmes

29. It has been explained earlier that it is difficult to establish any precise correlation between the level of agricultural production and the extent of implementation of development programmes which are initiated under a plan. Such trends can be seen in perspective only after a period. It is even more difficult to attempt to relate the production of one set of crops such as foodgrains to developmental programmes which may be undertaken or to distinguish separately the influence which these programmes may have on the production of various groups of crops. Nevertheless, as in the first five year plan, an attempt has been made to examine the possible sources of increase in production potential, especially in the context of food-grains. The" increase of 10 million tons mentioned earlier is broadly ascribed to the following development programmes:

(million tons)

Although, over a series of years rough yardsticks for increase in food production arising from irrigation or the use of fertilisers or other factors have been evolved, these are no more than a rough approach. Elaborate studies are needed before the effects of different programmes can be isolated and such measures devised as will permit reasonably accurate calculations even under normal weather conditions of anticipated increases in production. Programmes such as irrigation, fertilisers and improved agricultural practices have necessarily an interacting character and are interdependent. Moreover, as the farmer takes to improved agricultural practices and his knowledge of means available to him for influencing his environment increases and local communities become better organised, for action the effects on production from areas already under irrigation are likely to be substantial.

30. During the second five year plan 21 million acres of land are expected to receive irrigation, 12 million acres from large and medium irrigation schemes and 9 million acres from minor irrigation works. The provision for minor irrigation is made in part in the agricultural programmes of States and in almost equal part in the national extension and community development programmes. The former includes also provision for about a million acres of land to be irrigated from State tubewell schemes. Over 3500 production tubewells are expected to be constructed in the various States. So far tubewells have been concentrated in the states of Uttar Pradesh, Bihar, Punjab and Pepsu. During the second Plan, the tubewell programme will be extended to new areas which are already being investigated for availability of underground water under an exploratory tubewell project. For the successful implementation of the minor irrigation programme it is essential that there should be close coordination in the States between the agricultural department and district development staff incharge of national extension and community projects. In each State and district the programme of minor irrigation works and the irrigation targets to be achieved should be drawn up jointly between these two agencies. Systematic surveys are needed with a view to locating suitable minor irrigation works. During the past decade in each area many works which were long thought to be necessary and feasible have been taken up and fresh investigations are now required. A survey of water resources in Madhya Pradesh, Hyderabad and the eastern parts of Bombay State which are liable to scarcity conditions has been recently initiated by the Ministry of Food and Agriculture. Another aspect which calls for renewed attention is that while new minor irrigation works are being constructed a proportion of old works are falling into disuse. It is suggested that State Governments should review existing arrangements for the maintenance of minor irrigation works and, where necessary, they should enact new legislation placing adequate responsibility on village communities so that, if there is failure in maintaining works, repairs can' be undertaken and the cost recovered from the communities concerned. Panchayat legislation in several States contains provisions for the levy of labour contributions. Such contributions should be utilised for the maintenance of local irrigation works.

31. The consumption of nitrogenous fertilisers is proposed to be raised during the second plan from 610,000 tons in 1955 to over 1.8 million tons. The consumption of phosphatic fertilisers is also proposed to be stepped up. The utilisation of sewage and town composts has been provided for in the plan. In all areas special attention should also be given to green manuring and the use of oil cakes and other manures. The procurement and distribution of chemical fertilisers on a greatly expanded scale during the second five year plan raises the question of strengthening the existing administrative arrangements both at the Centre and in the States. Since 1944 the Central Government have operated a trading scheme known as the central fertiliser pool. The work of the pool consists in ascertaining the requirements of States and of consumers such as tea and coffee plantations, procurement of the quantities needed, fixation of prices and making the necessary arrangement for the distribution of fertilisers. Distribution within States- is undertaken by State Governments through Government sale depots, private distributing agencies and cooperative organisations, the detailed arrangements varying considerably in different States. As new chemical fertilisers are being brought-into use and manurial trials are being carried out in the country, it is of the greatest importance that information regarding the use of fertilisers should be made available on the widest possible scale and cultivators should receive adequate guidance and assistance. The number of depots where fertilisers can be purchased needs to be considerably increased. It is also necessary that adequate buffer stocks should be maintained so that uninterrupted supplies are assured. Finally, cooperative societies should be increasingly used as the main agency for distribution at the village level.

32. Plans of States provide for about 3,000 seed multiplication farms with a total area of about 93,000 acres. In general every national extention service block will be served by a seed farm and a seed store. Seed produced at local farms will be issued to cultivators after passing through one or more stages of further multiplication at farms belonging to registered seed growers. The seed multiplication and distribution programme is to be developed so as to be able to meet the full requirements of national extension areas. Seed testing stations are also to be setup with a view to ensuring and enforcing quality standards for certain categories of seeds, especially for vegetable production. Programmes for setting up cooperative seed stores have also been drawn up by several States. The area under the Japanese method of paddy cultivation is to be increased during the plan period from 1.6 to 4 million acres.

33. During the second plan it is proposed to reclaim 1.5 million acres of land and to carry out land improvement measures over an area of 2 million acres through the Central and State tractor organisations and other agencies and through manual labour of individual cultivators. According to the provisional programme which has been drawn up, the Central Tractor Organisation will undertake during the next two years the reclamation of about 96,000 acres of fallow and jungle land and the ploughing up of about 149,000 acres of land which has been previously cultivated. A tractor training centre has already been established in Bhopal and it is proposed to establish one more centre in order to provide opportunities for training for tractor mechanics and drivers. The plan provides for the establishment of a tractor testing station which will examine the suitability of all.types of tractors under Indian conditions and will also test diesel engines and pumping sets.

34. In extension work in the States the contribution of dry farming techniques has not yet received sufficient attention. Despite the scale on which irrigation programmes are being undertaken, a large proportion of lands will continue to be rainfed. The importance of the widespread adoption of the best dry farming methods cannot therefore be too much stressed. In particular, both for the conservation of water and of soil, in extension and community project areas contour bunding should be specially encouraged. While in certain parts of the country it is necessary to provide for mechanical equipment, as a general rule, contour bunding can be undertaken by local labour with some assistance and guidance from trained agricultural personnel. The States of Bombay, Saurashtra, Hyderabad, Madhya Pradesh, Vindhya Pradesh, Bhopal and Uttar Pradesh have large scale programmes for contour bunding. Among themselves they aim at carrying out contour bunding operations on more than 1.5 million acres during the plan period. In several States the value of consolidation of holdings in dry areas is not being fully appreciated. In areas where minor irrigation works such as wells can be undertaken, the benefits of consolidation of holdings are undoubtedly larger, but they are quite considerable even under dry farming conditions. The subject has been dealt with more fully in the Chapter on Land Reform and Agrarian Reorganisation.

35. In the field of plant protection government agencies have done valuable work especially in locust control. Greater attention should however be given to the education of the farmer in protecting his crops from pesis and diseases. Similarly, agricultural departments in the States should devote more continuous study to the question of evolving suitable types of bullock-drawn agricultural implements. Under the plan plant protection activities both of the Central and State Governments are to be intensified. Plant quarantine stations will be set up at the principal sea ports and air ports. Four centres for plant protection equipment were established under the first five year plan. These are to be strengthened and ten new centres are to be set up. A field centre for locust investigations will also be established.

Provision has been made by the Ministry of Food ' and Agriculture for a scheme for designing and introducing improved types of agricultural implements. Such work has been undertaken in the past at several centres in the country and needs to be developed more rapidly during the second five year plan. Provision has also been made by several states for making improved agricultural implements available to farmers at reasonable rates.

In western countries agricultural journals, pamphlets and other literature have made a considerable contribution to the development of improved agricultural practices. The Indian Council of Agricultural Research has taken steps in this direction and the plan of the Ministry of Food and Agriculture provides for further measures. This again is an activity to which agricultural and extension officials and other agencies in the States should give a high priority.

Horticulture

36. While programmes for animal husbandry, dairying and milk supply and forests and soil conservation are explained at some length in later chapters, a word "may be said here regarding steps proposed for developing the cultivation of fruit and vegetables during the second five yearplan. At present levels of production the availability of fruit and vegetables is reckoned respectively at about 1.5 and 1 ounce per head. Increase in the production of fruit and vegetables is essential both for increasing the supply of protective foods and for bringing about greater diversity in agricultural production. The plan provides Rs. 8 crores for horticultural development. Long-term loans are to be given to farmers for establishing new orchards and short-term credit is to be provided for rejuvenating existing orchards. New nurseries are also to be set up. Provision has also been made for the training of mails and for strengthening the horticultural staff in the States. The plans of States envisage rejuvenation of about 500,000 acres of existing orchards and about 200,000 acres of new orchards lands. Production of vegetables is to be encouraged, especially in the neighbourhood of towns by supplying seeds and seedlings of quality on credit and making technical guidance available to the vegetable growers. State plans also provide for the multiplication of nucleus potato seeds. Special attention is to be given to the organisation of marketing cooperatives for fruit and vegetable growers. For developing fruit and vegetable preservation, assisting the canning industry and setting up cold storage plants, the Ministry of Food and Agriculture has provided a sum ofRs. 1.75 crores. It is proposed to increase the annual production of canned fruit and vegetable from 20,000 tons to 50,000 tons. Measures for encouraging the export of preserved fruit and vegetable products are also envisaged in the plan, and it is expected that exports will increase from 1,000 tons to 11,000 tons by the end of plan. expected to be established. State Governments are to be assisted in strengthening their existing research laboratories and farms.

Agricultural Research And Education

37. In the more advanced national extension and community project areas farmers have readily accepted the results of research which have been communicated to them and have asked for more. This demand for solutions to problems old and new is likely to develop more rapidly during the Second Five Year Plan and agricultural departments and institutions have to prepare themselves to meet it. For many years past the Indian Council of Agricultural Research and institutions associated with it have been engaged in investigations of individual problems. There has been a lag in the application of the results of research and research workers have not drawn their problems sufficiently from the daily experience and needs of the farmer. During the Second Five. Year Plan, it is proposed to give close attention to the complex of problems which links research with development and also to continue work on fundamental problems. These are tasks to be carried ouHn cooperation between the Central and State Governments and the Indian Council of Agricultural Research and Agricultural colleges and other institutions in the States. Some problems relating to the organisation of agricultural research and education have been recently reviewed by a joint team of Indian and American experts.

38. The plan provides about Rs. 14.15 crores for agricultural research, 4.65 crores through the Central Commodity Committees and Rs. 9.50 crores in the programme of the Ministry of Food and Agriculture. State plans have a large number of research schemes which will be assisted on a matching basis by the Indian Council of Agricultural Research. The Council has sponsored a number of important investigations which will be continued during the second plan. These include breeding of rust resisting wheat, manurial experiments on fields of cultivators with a view to preparing manurial schedules and trials on cultivators, fields with new kinds of fertiliser. Agronomic experiments which have been carried out at 18 centres according to a scheme sponsored under the Indo-US Technical Cooperation Programme will be extended to 16 more centres. A scheme for investigating the methods of control by hormonal weedicides, which was begun during the first Five Year Plan, will be extended. Four research-cuw-testing centres for bullock drawn agricultural implements are to be established. To test the quality of improved seeds In regard to germination and extent of contamination by weed seeds, 11 testing centres are.

39. The Indian Agricultural Research Institute, the Central Potato Research Institute, the Central Rice Research Institute and the Sugarcane Breeding Institute have drawn up programmes of basic research for the second five year plan. During the first plan the Indian Agricultural Research Institute has carried out investigations on soil fertility, fertiliser use and wheat rust control, resulting in the evolution of varieties of wheat resistant to rust Its research organisation and programme have been recently reviewed by an expert committee which has recommended strengthening of various departments. New lines of investigations such as soil mapping, rapid soil tests, testing and certification of insecticides, storage pests, appraisal of losses due to plant disease, and use of atomic^ energy in solving agricultural research problems are proposed to be undertaken. A new horticultural division is to be set up. The > Institute's programme also includes the establishment of regional stations for virus research, a seed testing laboratory, and a bureau of plant introduction. The Institute has drawn up 68 research projects to be carried out during the Second Five Year Plan.

40. The Central Potato Research Institute, which undertook a coordinated scheme for applied research and development of potatoes during the first five year plan, proposes to give special attention to the production and maintenance of disease-free nucleus seed stock of breeding material and improved varieties and to carry out investigations on tuber crops other than potatoes. The Central Rice Research Institute, which has been engaged in fundamental research work on rice and has been a coordinating centre of information, proposes to establish sub-stations for breeding work on rice. Problems of sugarcane research are being studied under the aegis of the Indian Central Sugarcane Committee. The programme of research projects includes the study of varieties of sugarcane giving high tonnage and high sugar recovery, their response to fertilizers and manures with special reference to yield and quality of juice,-time of harvesting of plant cane for keeping ratoons, cultural and rotational practices best suited to different regions, control of weeds and fungal diseases, inheritance of disease resistance, influence of climatic conditions on insect pests like stem-borer and pyrilla, and research on improvement in the manufacture and storage of gur and improved types of cane crushers and Juice boiling furnaces. A number of research projects are also being taken up at the Indian Institute of Sugarcane Research, the Indian Institute of Sugar Technology and the Sugarcane Breeding Institute.

41. Each of the seven Central Commodity Committees set up by the Government of India has drawn up a programme of investigations in the crops with which it is concerned. Thus, the Indian Central Cotton Committee, which has at present 72 research schemes under investigation, proposes to set up four regional research stations, to remodel the technological laboratory in Bombay and to intensify research work on long-staple cotton. The jute technological laboratory in Calcutta, which functions under the Indian Central Jute Committee, is to be developed and strengthened. An institute of oil technology is to be established by the Indian Central Oilseeds Committee which has evolved a few improved varieties ofoilseeds and has proposed further work on the breeding of improved high yielding varieties. Research work on tobacco is to be stepped up by the Indian Central Tobacco Committee in view of the fact that with decline in the production of high grade tobacco in recent years exports of tobacco have diminished. Special emphasis is to be laid on improving the quality of tobacco and systematic trials of new varieties evolved at Rajamundry are to be carried out. The production of coconut being insufficient to meet the requirements of 'the country, the Indian Central Coconut Committee proposes to strengthen its two existing research stations and to organise three regional research stations, with the object of increasing the yield per tree by improving cultural practices, evolving high yielding varieties and reducing losses due to plant diseases and insect pests. Research on arecanut, which is also in short supply, has to be undertaken as a long-range task as this is a perennial crop and takes 8 to 10 years to bear fruit A central research station and three regional research stations have already been set up and under the auspices of the Indian Central Arecanut Committee it is proposed to establish a central technological laboratory and three more regional stations. The Lac Cess Committee will also intensify research work on the technology and utilisation of lac. Finally, in view of the programme for fruit and vegetable development during the second plan besides establishing a horticultural division at the Indian Agricultural Research Institute, it is proposed to set up horticultural Research stations on a regional basis for the improvement of important fruit crops such as mango, citrus, grape, guava, pineapple and apple.

42. in addition to technical research programmes described above economic aspects of agriculture are now being studied at four-agro-economic research centres which were set up in 1954-55 at Delhi, San-tiniketan, Poona, and Madras. It is proposed to establish two more agro-economic centres during the plan period. Under the auspices of the Research Programmes Committee of the Planning Commission farm management studies are being conducted in Bombay, Punjab, West Bengal, Uttar Pradesh, Madhya Pradesh and Madras. Valuable data on the institutional aspects of agricultural development is becoming available from the work of the Programme Evaluation Organisation of the Planning Commission. With the help of these and other studies such as those undertaken by the Reserve Bank of India in the Rural Credit Survey studies it is hoped to fill important gaps in information concerning Indian agriculture, especially those relating to farm cost, economics of farm size, input and output relationships in agriculture, economic aspects of mixed farming, measurement of under-employment, credit needs, indebtedness, capital formation, etc.

43. With the decision to introduce the national extension service over the entire country, proposals to expand the available facilities for agricultural education were also considered. Bihar, Rajasthan and Travancore-Cochin were assisted in establishing new agricultural colleges, in Assam, Hyderabad, Madras, Madhya Pradesh and Punjab the existing agricultural colleges have been strengthened. Two new colleges are being established in Madhya Pradesh. The number of agricultural colleges has now risen to 28 and these institutions will be able to meet the total requirements of agricultural graduates during the second five year plan which are estimated to amount to 6,500. For the training of village level workers, in addition to the existing 54 basic agricultural schools and 44 extension centres, it is proposed to establish 25 new basic agricultural schools, 21 extension centres and 16 basic agricultural wings attached to extension training centres.

Marketing Of Agricultural Pproducts

44. The primary consideration for the development of agricultural marketing is so to reorganise the existing system as to secure for the farmer his due share of the price paid by the consumer and subserve the needs of planned development To achieve these objects, malpractices associated with buying and selling of agricultural produce have to be eliminated, arrangements made for the efficient distribution of marketable surpluses from producing to consuming areas and cooperative marketing has to be developed to the maximum extent possible. Rural marketing and finance have to be integrated through the development of marketing and processing on co-operative lines. Programmes for co-operative marketing and processing which have been drawn up so far for the second five year plan have been outlined in an earlier chapter. Here it is proposed to refer to other aspects of agricultural marketing. It is estimated that cooperative agencies may be able to handle about 10 per cent of the marketable surplus by the end of the second plan. The rest of the surplus will continue to be sold through other marketing agencies. In the interest of the primary producer, therefore, the importance of regulating markets and market practices needs more emphasis. Moreover, the success of cooperative marketing itself depends on the efficiency with which regulated markets function. It has been observed that in States in which regulated markets have not been established to any extent, the cultivator is in a situation of much greater disadvantage than elsewhere.

45. The past few years have not been a period of marked progress in the regulation of agricultural markets. It had been recommended in the First Five Year Plan that the operation of the State Agricultural Produce (Markets) Act should be extended so as to cover all important markets before the end of the plan period. Before the plan seven States had this legislation in operation. During the plan only three more States have enacted legislation. The number of regulated markets which stood at 265 in 1950-51 has increased to over 450. In some of the States which have the necessary legislation trade in a number of important commodities is now being regulated, as for instance, in foodgrains, fruit and vegetables, cattle, etc. The practice of sales in villages is not free from abuse, but it has not yet been regulated to any extent. Municipal markets in towns, where the produce is received on consignment basis and also brought directly by the producers have so far remained generally outside the scope of the State Agricultural Produce (Markets) Act. 'Except in relation to proposals for co-operative marketing, plans of several States for the next five years do not provide adequately for the regulation of agricultural markets. Some States have, however, framed targets for this purpose. Those who have not done so should review the present position and draw up suitable programmes for regulating all important wholesale markets during the second plan. On the programmes so far drawn up it appears that the number of regulated markets will be doubled by the end of the second five year plan.

46. Although the Agricultural Produce (Grading and Marketing) Act was passed as long ago as 1937, except in respect of certain export commodities, progress in the grading of agricultural produce has not been adequate. The compulsory grading of sann hemp and tobacco for export was introduced during the war. The First Five Year Plan recommended introduction of compulsory grading for export in respect of other commodities such as wool, bristles, goat hair, lac, sheep and goat skins. East Indian tanned leather, cashew-nuts, pepper and ginger, oilseeds, oils, essential oils and kapok. During the plan period there has been progress only in respect of wool. and bristles and some essential oils, and preliminary work has been done for the remaining commodities. Compulsory grading should be organised at an early date for all the commodities mentioned in the First Five Year Plan.

47. Grading is necessary not only for commodities which are exported but also for internal trade Hitherto it has been left to the goodwill of individual parties whether or not to seek Agmark grading for their products. In the main, grading has been confined to , ghee and vegetable oils. Grading should be extended to other commodities as well as for ghee and oils. Laboratory facilities for testing quality and purity should be organised. A beginning has been made with the setting up of the Central Quality Control Laboratory at Nagpur and eight regional subsidiary quality control laboratories. It is expected that before the end of the second plan all these laboratories will be functioning. These laboratories, in addition to routine quality control work, will also undertake investigations for fixing or revising specifications of grades of different commodities. Grading of agricultural produce is also an essential aspect of the development of cooperative trade and warehousing. For the pooling of agricultural prouduce and bulk storage suitable grades have to be established for important cereals, oilseeds, pulses, cotton, jute, spices, etc. Some work has been done in this direction.

48. For inter-State trading and for widening the market for agricultural produce, it is essential that weights and measures and contracts of sale and purchase should be standardised. A large proportion of States have legislation for weights and measures,but some of them have not provided the machinery for supervision and inspection. ,The implementation of the weights and measures legislation has been suspended in view of the recent decision to change over to the metric system of weights and measures.

49. Variations exist in contract terms on the basis of which trading takes place in different markets. For inter-State trade and for making the prices quoted in various markets comparable it is also desirable that contract terms, particularly in respect of such aspects as allowances for quality and packing should be standardised on an all-India basis. The Forward Markets (Regulation) Act, 1952, provides for prior approval of the Forward Markets Commission of bye-laws framed by various recognized trade associations. It is proposed that these associations may adopt the standard contract terms devised by the Ministry of Food and Agriculture for wheat, linseed, groundnut, copra, and for oils prepared from these oilseeds. Standard contract terms should also be prepared for commodities in respect of which forward trading is to be regulated.

50. The lack of accurate and up-to-date market information places both the fanner and the administration at disadvantage. Failure in making market information promptly available is one of the factors accounting for price variations for the same commodity in different markets. In some markets the task of reporting devolves on private agencies and the arrangements made have not proved satisfactory. While information may be available on many .matters from terminal markets, information 'from assembling and distributing centres is far from satisfactory. Commercial agencies engaged in export have information in respect of important markets, but the information received by them is not made public. The plan provides for the setting up of an all-India market news service mainly for farmers, to be organised in collaboration with the States. For providing trained personnel facilities for imparting specialized training in agricultural marketing to 20 to 30 candidates every year are also being arranged.

51. Market research comprising marketing surveys, studies and analysis of price spreads, standardisation of grade specifications and packages etc. is essential for the development of agricultural marketing- The Central Agricultural Marketing Organisation has so far undertaken marketing studies on about 40 principal commodities and published reports on them. The data contained in some of the reports are, however, largely out of date. There have been substantial changes in the pattern of agricultural production and in the composition of foreign and internal trade. It is therefore essential that fresh studies should be undertaken and the data brought up to date. For important crops regional studies should also be undertaken.

52. An important development during the first five year plan was the passing of the Forward Contracts (Regulation) Act, 1952, and the setting up in the following year of the Forward Markets Commission. The Commission advises Government on the associations which should be recognised for forward trading in different commodities and areas and the commodities in which forward market operations may be permitted under the Act It regulates and controls the work of the approved associations, inspects their accounts and maintains a watch over the working of the various forward markets. Its activities are expected to go a long way in eliminating artificial scarcities and wide fluctuations in markets which have sometimes marked the working of commodity markets. During the past year the Central Government have approved new centres for futures trading in a number of commodities— Akola and Indore for cotton; Bombay, Ahmedabad, Madras, Adoni, Delhi, Rajkot, Hyderabad and Calcutta for oilseeds and groundnut oil; Sangli for turmeric, Allepey for coconut oil and Cochin for pepper. The Forward Markets Commission is at present engaged in considering applications for recognition received from associations at different centres and it is expected that about 40 associations will be recognised all over the country. Thereafter, the Commission's main task will be to keep the futures markets under observation and regulate their work so as to minimise price fluctuations between different places and between different points of time and to afford hedging facilities to traders.

Agricuitural Statistics

53. The collection of accurate and reliable agricultural statistics, their analysis and interpretation on scientific lines are essential for the formulation of correct agricultural policies and for planning agricultural production. Attention to the inadequacy of such data and the need for their improvement was drawn in the First Five Year Plan. Since then various measures have been taken for improving agricultural statistics. The coverage of the crop forecasts has been enlarged and the time lag in their publication reduced. Cadastral surveys have been undertaken in more unsurveyed areas and primary reporting agencies have been set up where they did not exist As a result of this, the reporting area for which returns of agricultural statistics exist has increased from 615 million acres at the beginning of the first plan to over 720 million acres. Standard definitions and uniform concepts have been laid down and a number of methodological studies have been undertaken by the Indian Council of Agricultural Research. Steps have been taken to improve the quality of the livestock census taken in April, 1956. Much, however, still remains to be done. Data relating to livestock numbers and livestock products and fisheries are inadequate and defective. Reliable statistics are not available for many minor crops of commercial importance. Provision has been made in the plan for improving the coverage, content and quality of agricultural statistics. Improvement in fisheries and livestock statistics will be made on the basis of pilot studies which have been completed.