The first ever National Agriculture Policy was announced in July, 2000. The Policy seeks to actualise the vast untapped potential of Indian agriculture and aims at achieving a growth rate in excess of 4 per cent per annum in the agriculture sector. It also seeks to achieve growth with equity, i.e., growth, which is widespread across regions and farmers. It also emphasises the need to cater to domestic markets and maximise benefits from exports of agricultural products. Various measures have been taken to operationalise the policy. In pursuance of the policy, national policies on sectors like cooperation, seeds and extension have been framed.

The overall foodgrains production of 212.02 million tonnes during the year 2001-02 was an all time record. This was made possible by various factors, including steps taken to ensure the availability of vital inputs to farmers.

This represents a major shift from the programmatic to the Macro Management mode of planning and implementation to operationalise regionally differentiated strategies and ensure that limited financial allocations find timely and effective application in the intended areas. State-wise work plans are formulated in an interactive mode. Twenty-seven on-going Centrally sponsored schemes have been integrated and the funds available under them have been consolidated to provide assistance to the States for implementation of the work plans. During the current financial year, an amount of Rs.700 crore has been provided under the scheme.

With its abundant water resources and favourable soil structure, Eastern India has the potential to substantially increase the productivity of different crops. However, full potential was not being realised due to lack of any major scheme for utilising the ground water in this region. A new scheme "On Farm Water Management, for Increasing Crop Production in Eastern India", has been launched in 171 districts of Uttar Pradesh, Bihar, Jharkhand, West Bengal, Assam, Orissa, Chhattisgarh, Manipur, Mizoram and Arunachal Pradesh.

The Technology Mission on cotton was launched in 2000. It has separate Mini-Missions on production technology, production programmes, market intervention and modernisation of ginning and pressing units. The aim is to meet the growing demand of cotton for domestic and export purposes.

A Technology Mission for Integrated Development of Horticulture in the North Eastern States including Sikkim was launched during 2001-02 with an outlay of Rs.239 crore. The Scheme seeks to address all issues relating to the development of horticulture in the region covering research, development and marketing. The mission has been extended to Himachal Pradesh, Uttaranchal and Jammu and Kashmir.

A Central Sector Scheme on Technology Mission for Coconut was launched for implementation during 2001-02. The Mission seeks to address issues like technology development, demonstration, processing, product diversification, market research and promotion.

A scheme of construction, renovation and expansion of rural godowns, called Grameen Bhandaran Yojana, was launched during 2001-02. The scheme will immensely benefit farmers, especially the small and marginal ones and improve the marketing infrastructure in rural areas.

The policy, announced in March, 2002, seeks to facilitate all round development of co-operatives in the country. Under it, cooperatives would be provided necessary support, encouragement and assistance to enable them to work as autonomous, self-reliant and democratically managed institutions.

The Central Government has enacted a new Multi-State Cooperative Societies Act, 2002 to provide full functional autonomy and democratic management to co-operative societies. It removes the restrictive provisions of the earlier version, enacted in 1984.

Farmers now will have to pay a maximum interest rate of 9 per cent on bank loans up to Rs.50,000 for each crop. Earlier, they had to pay a rate of 14 to 18 per cent. Emphasis has been laid on progressive institutionalisation for providing timely and adequate credit to farmers for increasing agricultural production and productivity. From Rs. 46,268 crore in 1999-2000, the flow of institutional credit to the agriculture sector is estimated to have increased to about Rs 75,000 crore in 2002-03. More than three crore Kissan Credit Cards have been issued since 1999-2000. A personal insurance package, to cover the Kissan Credit Card holders against accidental death and permanent disability up to a maximum of Rs.50,000 and Rs.25,000, respectively, was operationalised during 2001-02.

The Government has announced a Rs 50,000 crore programme for mitigating the difficulties, being faced by the agricultural sector. The programme, to be spread over three years, will address issues like agri-infrastructural facilites, wasteland development, minor irrigation, functioning and viability of cooperatives, grading, certification, storage of agro-products, their processing, cold chains and modern abattoirs. Under the programme, to be operated by the NABARD, loans will be made available to borrowers at low competitive rates.

A pilot project of the Farm Income Insurance Programme has been lunched during the 2003-04 Rabi season. It covers the two critical components of the farmer’s income, namely yield and price through a single policy instrument. The minimum guaranteed income is determined by using the average yield of last seven years and the minimum support price.

The National Agricultural Insurance Scheme launched from Rabi 1999-2000 aims at protecting the farmers against crop losses suffered on account of natural calamities such as drought, flood, hailstorm, cyclone, pests and diseases. The Scheme is currently implemented by 22 States and 2 UTs.

The Seed Crop Insurance Scheme was introduced with effect from the Rabi season 1999-2000 and is currently being implemented in Andhra Pradesh, Haryana, Karnataka, Madhya Pradesh, Chhatisgarh, Maharashtra, Uttar Pradesh, Uttaranchal and Gujarat.

The Protection of Plant Varieties and Farmers’ Rights Act, 2001 provides for establishment of an effective system for protection of plant varieties, the rights of farmers and plant breeders and for encouraging the development of new varieties of plants. The plant varieties will be registered for plant breeder rights, based on the criteria of distinctness, uniformity and stability.

The main features of the National Seeds Policy, 2002 include development of new and improved varieties of plants, timely availability of quality seeds, compulsory registration of seeds, creation of infrastructure facilities, quality assurance, promotion of seed industry, abolition of licensing for seed dealers, facility for import of best quality seeds, encouragement for export of seeds and creation of Seed Banks and National Seed Grid. The initiatives will encourage investment in research and development.

The scheme aims at utilising the vast mass media infrastructure available in the country for providing agriculture-related extension services. It includes launching of a cable-satellite channel for national broadcast using the existing facilities available with IGNOU, use of transmitters of Doordarshan for providing area-specific broadcast and use of the FM transmitter network of All India Radio to provide area-specific broadcast.

The scheme aims at addressing queries and questions raised by farmers throughout the country. The farmer can access a Call Centre through toll free lines by dialing 1551 any time. The questions will be answered by agri-graduates and specialists.

The scheme of Agriclinics and Agribusiness Centres was launched in 2001-2002, with the objective of using unemployed agriculture graduates to provide extension services to farmers on payment basis by setting up their private ventures. The Government of India provides training to agriculture graduates willing to set up such centres.

The country faced a severe drought last year. In order to mitigate drought conditions, the Government of India allocated 87.36 lakh MTs of foodgrains, free of cost, and provided cash assistance of Rs.4,214.95 crore under CRF and NCCF to the 17 drought affected States.

The Government has announced a one time assistance of Rs.678.06 crore to Uttar Pradesh, Uttaranchal, Haryana, Punjab and Bihar to clear the cane arrears of sugarcane farmers for the 2002-03 season.

Several measures, initiated by the Government to increase the productivity of livestock, have resulted in significant increase in the milk production to the level of an estimated 89.1 million tonnes in 2002-03 as compared to 17 million tonnes in 1950-51. India has become the largest producer of milk in the world.

Poultry development in the country has shown steady progress. Egg production during 2001-02 was 34.03 billion.

There has been significant growth in fish production in the country in recent years. During 2001-02, the total fish production was 59.86 lakh tonnes.

About 400 improved varieties/hybrids of crops have been released for realising improved productivity and enhanced stabilised production. Eighteen improved agricultural tools and equipment have been developed and standardised.