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Economic Development Policy

AGRICULTURE & ALLIED SERVICES Back.....

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MARKET ACCESS           

Access to markets and market information is a critical driver of agricultural development. The Government seeks to facilitate access to markets for farmers by ensuring rural connectivity, development of organised market places and investment in marketing/ procurement infrastructure, such as mandis. Similarly, for the development of exports, marketing and information support on the target markets is critical. Access to international markets is often restricted by stringent quality and phytosanitary standards. The Government shall take appropriate steps to improve the export competitiveness of the state.
» Provide for private sector participation in the development of mandi infrastructure and other services. In order to allow private investment in the development of mandi facilities, the State is in the process of making appropriate changes in the legal framework.
 
» Provide on-line access to Market Information. Information on prevailing market prices is a critical input in the sales decision of the farmer. To provide access to such information and with the eventual objective of facilitating on-line trading, mandis across the State are proposed to be connected and market information systems developed. The project shall be allotted on Build-Own-Operate (BOO) basis. Mandi as well as international price information is already being made available. In addition, a website educating farmers on the impact of WTO shall also be developed.
 
» Develop Rural Connectivity. The State shall develop rural connectivity as part of the Rural Roads Program as already discussed in an earlier section.
 
» Promote Exports. The State shall facilitate the development of exports through various measures such as marketing & promotion assistance, information access, access to world class infrastructure and assistance in technology upgradation.
» MP Agro shall be the nodal agency for promotion of Exports. Information dissemination on international markets (import practices, consumer preferences, prices, quality standards), market development and identification of opportunities i.e. unified presence at international fairs & meets in collaboration with APEDA shall be its key functions.
» The Export Potential of durum wheat, spices and vegetables shall be developed. Agri Export Zones (AEZ) shall be established for wheat, spices and vegetables respectively
» The State plans to provides financial assistance for the establishment of information centres, analytical laboratories of international standards, cold chains, and procurement of internationally acceptable quality standard certifications such as HACCP etc.
 
» Launch Organic Farming Program.  This program shall be launched with a view to tapping export markets. The program proposes to make the farmer self sufficient while using environmentally conducive, and cheaper techniques. One village in each development block has been identified for organic farming.
 
ALLIED SECTORS                

Allied sectors such as Horticulture, Dairy and Animal Husbandry, Inland Fisheries and Forestry provide greater employment opportunities and better returns to the farmer. Dairy and Fisheries can in fact be an additional source of income as they are not land intensive. Therefore, the state shall focus on the Horticulture, Animal Husbandry and Inland Fisheries sectors.

Horticulture

Madhya Pradesh shall actively encourage the development of this sector within the State. Some of the biggest advantages of a focus on horticulture are the following:

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It is a high value activity and therefore offers scope for higher incomes.
 
» It is extremely labour intensive and provides greater employment opportunities throughout the year.
 
» The domestic as well as international markets offer opportunities for both fresh as well as processed fruits and vegetables. Horticulture has been identified as one of the high potential opportunity areas for India post WTO.
 

The key intervention areas for the development of the Horticulture sector include:  

» Development of Cold Chain infrastructure. In line with the State’s vision of becoming the Logistics Hub of the country, by leveraging its central location, and connecting production centres with consumption centres, the State shall ensure the development of cold chain infrastructure through private sector participation. The availability of such infrastructure is likely to give impetus to Horticulture activity in the region. At the same time, it is proposed that mandis shall be equipped with specialised infrastructure for fruits & vegetables such as grading, sorting, packhouses, cold storages etc. In order to allow private sector to participate the necessary legal framework shall be created.
 
» Encouraging contract / corporate farming.  Contract farming addresses the development of the value chain by eliminating intermediaries and provide access to technology, infrastructure as well as a ready market. It is a win-win situation for both parties. The government is therefore keen to encourage the same and has initiated the review of the legislative framework in order to address the critical issue of speedy dispute redressal. In addition, land ceiling exemptions have been given to solicit private interest in horticulture farming eg. through wasteland farming, Babai Farm is being tendered out.
 
» Distribution of mini seed kits to BPL families. The Government proposes to distribute mini seed kits of fruits and vegetables to below the poverty line (BPL) families with a view to improving their nutritional intake as well as providing them with a source of income. 100% of the families shall be targeted under this scheme.
 
» Development of Export potential. MP Agro shall jointly identify (with APEDA) export opportunities for fresh & processed products from Madhya Pradesh.
» Agri Export Zones shall be developed for spices and vegetables respectively, complete with state of the art facilities. A Steering Committee under the chairmanship of Secretary, Agriculture shall be constituted to oversee this development and resolve any issues that might arise.
» Program for the development of Organic Farming
Animal Husbandry

The animal husbandry sector offers a tremendous opportunity for rural development and employment generation. It can be a strong tool for balanced regional development across the state. Since it does not make any demands on land it offers farmers, particularly the land-less, an additional source of income and therefore opportunities for self-betterment. Cattle, goat and sheep farming, poultry, piggery offer significant opportunities for rural development.
 

The State shall:  

» Provide better opportunities for employment, particularly for self- employment to the rural unemployed youths through animal husbandry and “Gau Sevak” projects.
 
» Reduce environmental pressures by reducing the number of non-descript animals and by encouraging “Stall feeding” in the coming five years.
 
» Ensure the development and farming of some local pedigree animals of particular areas under preservation of animal bio-diversity.
 
» Ensure the availability of eggs and meat of birds, extend the “Cockrel Project” based on “Free Range” policy and maintain the availability of coloured birds under the “Backyard Poultry” policy in tribal areas.
 
» Make Co-operatives economically self-dependent.
 
» Restructure veterinary hospitals run by the Animal Husbandry Department so as to improve the quality of services provided by them i.e. improve the quality of local breeds through availability of artificial insemination facility, control the population of non-descript animals through sterilisation facility, provide required treatment facility, and ensure adequate production of vaccines.
 
» Provide Oxen under the National Bovine Breeding Programme and target the coverage of 55 percent of the breedable population by 2005 and 100 percent by the end of 2010 through both artificial and natural insemination by providing enriched quality and modern facilities.
 
» Extend basic medical facilities in the far off rural areas through the recruitment and training of local educated unemployed.
 
» Organise Cattle Welfare Committees, along the lines of Rogi Kalyan Samitis, at the District and Block levels to make resources available locally.
 
» Implement the Cattle Insurance Scheme to protect the poor cattle owners from the untimely and sudden death of their cattle.
 
» Modernize slaughter houses through local administration so as to provide fresh and healthy meat to the people.
 
» Ensure the proper implementation of ‘Farm Cattle Protection Act’ and the ‘Cruelty Against Animals’ law and other such related Acts and Laws.  In this context, the State shall provide maximum grants to “Goshalas” or Cow shelters through ‘Gau Sewa Aayog’ / Cow Service Commission.
 
Inland Fisheries

Like Animal Husbandry, Fisheries also provide an alternative source of income for the small and marginal farmers. Given that MP has 3.9 lakh hectares of water area for fish culture and an additional 20,000 kms of flowing river, inland fishery offers an opportunity for greater employment and value creation.

The main objective of fishery department is the sustainable development of water resources and the social and economic development of all the classes of fishermen attached to it. The State shall adopt the following policies for the long-term development of Fisheries.
» Bio-technology shall be used to improve fish production
 
» By integrating the extension of agriculture and animal husbandry with pisciculture the benefits shall be multiplied while reducing the costs
 
» ‘Pen Culture’ programmes will be implemented in water bodies for the production of fish seed
 
» Emphasis will be on the development of fish seeds of higher yielding varieties of fish. Every attempt shall be made to become self-dependent in fish seed production in the current Five-Year Plan.
 
» In addition, the focus shall be on the production of sufficient quantities of the larger fish seed (fingerling) of relevant varieties.
 
» Reservoirs and other water bodies of upto 2000 hectares in size shall be handed over to the three tier Panchayati Raj institutions for the development of fisheries and simultaneously provide a source of income to the same.
 
» The task of development of fisheries in reservoirs with an area of upto 2000 hectares will be given to Co-operatives through the Fishery Federation for providing maximum employment and marketing assistance to displaced / traditional fishermen.
 
» The cultivation of Jhinga will be initiated in the fresh water areas of the state.
 
» The unique breeds in the state shall be protected and the conservation and rebreeding of endangered breeds shall be taken up.
 
» Information technology shall be introduced and the same shall be used to resolve problems and provide proper guidance to fishermen operating in far-flung areas.
 
» The right to development of fisheries in all the ponds/ reservoirs under different departments, shall vest with the Fishery Department and a policy for the development of the same shall be formulated.
 
» The production, cultivation and sale of aquarium fishery shall be encouraged within the private sector and for this training, credit and grants shall also be provided.
 
» With a view to developing Tourism in the State, angling facilities shall be developed.
 
Co-operation

The Government is committed to the co-operative movement and shall assist these societies to develop into financially secure autonomous units.
» The State Government will endeavour to strengthen the co-operative movement in line with the available schemes of NABARD and National Co-operative Development Corporation (NCDC).
 
» After financial strengthening these institutions would be encouraged to convert to autonomous co-operatives under the MP Swayatta Sahakarita Adhiniyam 1999.
 
» Co-operative Credit Structure would also be encouraged to improve credit flow at competitive rates of interest while simplifying sanctioning procedures and promoting timely repayments by incorporating incentives.
 
» The State shall introduce schemes to organize co-operatives under the provisions of the new Act to bring in services not hitherto covered by co-operative movement.
 
» The State shall provide support to co-operative societies in taking up member education and training.
 
Forestry

Madhya Pradesh is endowed with rich and diverse forest resources, having recorded forest area equivalent to almost one-third of the geographical area of the State.

22,600 out of a total of 52,739 villages in the State are located in or near forest area.  Being away from the main stream, most of the villagers are dependent upon the forest for their livelihood.  In addition to timber, small timber, fuelwood and fodder, there are a large number of other items like fruits, flowers, leaves, seeds, roots etc. commonly referred as non-wood forest products which contribute significantly in socio-economic development of rural communities.

The state proposes various initiatives in the forestry sector with a view to improving community participation in the management of the resources, productivity enhancement and encouraging private sector participation.
» Management of resources. The State shall continue to strive for the democratisation of the Joint Forest Management committees constituted with local participation for the conservation and development of forests.  At least 1/3rd of the Executive Committee shall be constituted of the women and either chairperson or the vice-chairperson has to be a woman.  In order to encourage the participation, the committee members shall be provided suitable incentive in the form of forest produce etc.
 
» Improving productivity. With the aim of increasing the productivity levels, an innovative high tech plantation scheme aiming at the production of high quality timber at a short rotation of the economically viable species such as teak, bamboo, etc. has been conceived and is being implemented as a pilot project.  This scheme also envisages cultivation of medicinal and other economically viable plants as understorey.

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This scheme shall be implemented with the active co-operation of the local landless people, using the recently announced food for work programme of the Government of India as a source of funding for this programme.
 
» Lokvaniki Mission has been formulated aiming at the management of the treeclad areas of the individual farmers for the twin benefit of the environment amelioration and economic development of the people. This scheme with its new legal framework simplifying tree-felling procedure is expected to promote agroforestry and attract private investment for the non-forest areas and at the same time ease the pressure on the natural forests.
 
» People’s Protected Area (PPA) envisions a proactive and people’s friendly framework so that it becomes Poor Peoples tool of Assets for meaningful poverty alleviation.  It aims to ensure the long term protection and maintenance of biological diversity and at the same time provide a sustainable flow of natural products and services to meet the needs of the local community.
 
» Encouraging private investment. Lucrative investment opportunities shall be exploited by tapping private enterprise.
» National Parks, Sanctuaries and other pristine forest areas located within the State shall be promoted for the development of Eco and Adventure tourism.  There will be continuous and active liaison with the Tourism Department on this.
» The State shall undertake a detailed mapping exercise of the Non Forest Produce wealth of the State
» Develop and market project profiles of lucrative business opportunities
» Enter into various innovative tie-ups with local communities for the documentation of all medicinal plant varieties available in MP along with their medicinal properties. The government shall endeavour to tap the domestic and export potential of these. The State shall also explore the possibility of collaboration with Industry. Efforts shall be made to develop linkages between the collectors and end users of non wood forest produce

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