Annex I
Directorate of
Economics & Statistics
The Directorate of Economics and Statistics (DES), an attached office of the Department of
Agriculture and Cooperation (DAC), Ministry of Agriculture, Government of India, is entrusted
with the economic and statistical work concerning different facets of
agriculture. Work in this area may be broadly divided into the following
categories:-
(a)
Agricultural economic policy
and development
(b)
Food economics and statistics
(c)
Trade in agriculture
(d)
Agro-economic research
(e)
Area , production and yield
estimates
(f)
Statistics of investment,
growth, wages, employment,Costs, Prices, trade and related variables in
agriculture.
(g)
Collection, collation, dissemination and publication of
Agricultural Statistics
(h) National crop forecasting (Crop& Weather Watch Group Meetings and operationalisation of New Schemes on FASAL And Extended Range Weather Forecast)
(i) Economic and Statistical work involved in important ad hoc assignments like Revision of base of WPI for Agricultural Commodities, Conduct of National/International Conferences, etc.
Price policy for agricultural
commodities constitutes an important element of overall agricultural economic
policy. Minimum Support Prices (MSPs) for important cereals, pulses, oilseeds,
and other commercial crops, namely, cotton, jute and sugarcane, are fixed by
the Government every year on the basis of the recommendations made by the
Commission for Agricultural Costs and Prices (CACP). The list of 25 crops for
which MSPs are recommended by CACP and announced by the Government is at
Statement I annexed to this Note.
The most important factor
considered by the CACP in making its recommendations on MSPs for different
crops is the cost of cultivation/production for which the database is provided
by the DES through its plan scheme for study on cost of cultivation. Analysis
of various price policy issues in the emerging socio-economic environment
requires advance information on the production of different crops,
supply-demand scenario, as well as regular monitoring of price movements in
both the domestic and international markets.
The effectiveness of price policy in boosting production and
productivity of agriculture in tune with domestic as well as external demand
cannot be assessed in the absence of regular data on area, production and yield
of different crops. Similarly, data on domestic and international prices for
various agricultural commodities, trends in procurement, offtake and stocks of
foodgrains, consumption of different agricultural commodities, their exports
and imports, etc. assume immense significance in the emerging external economic
environment, which is increasingly influenced by the World Trade
Organisation.The importance of a sound data/ information base on different
facets of agriculture cannot therefore be overemphasized. The Plan Schemes of
DES seek to serve this purpose.
In keeping with the need to adopt
a holistic approach to the implementation of individual schemes with
inter-related objectives, it has been proposed/decided to merge the on-going
plan schemes into three broad umbrella schemes. The details of these schemes, with special reference to the
component schemes, are given below.
1. Studies on Inputs for Agricultural Economic Policy and
Development
1.1 Comprehensive Scheme for Studying the Cost of Cultivation of Principal
Crops in India
The Comprehensive Scheme
for Studying the Cost of Cultivation of Principal Crops in India is being
implemented since 1970-71 as a Central Sector Plan Scheme on the basis of
recommendations made by the Standing Technical Committee on Indices of Input
Costs constituted under the Chairmanship of Dr. Ashok Mitra in 1967.
The main
objectives of the scheme are as
follows:
(i) collection and compilation of field data
on cost of cultivation and cost of production in respect of 28 crops;
(ii) generation of estimates of cost of
cultivation and cost of production of various crops in different States covered
under the scheme ;and
(iii) construction
of the indices of terms of trade between agriculture and non-agriculture
sectors.
The
estimates of cost of cultivation of principal crops are used by the Commission
for Agricultural Costs and Prices (CACP) for recommending Minimum Support
Prices (MSPs) of 25 crops, including sugarcane for which the support price is
termed “Statutory Minimum Price (SMP).” The Directorate of Economics &
Statistics (DES) in the Ministry of Agriculture gets this study conducted
through 16 Agricultural/General Universities/College besides the Directorate of
Tobacco Development. Under the scheme,
the field data pertaining to the cost of cultivation/ cost of production are
collected, compiled and analysed.The estimates of cost of
cultivation/production furnished to the
CACP forms an important basis for recommending the MSPs of various agricultural commodities to the Government of
India.
The cost estimates generated under the scheme
are also used by State Governments, Agricultural/General Universities,
Government / Non-Government Research Organizations and individual researchers.
The data are also used for working out the Index Numbers of Terms of Trade
between agricultural and non-agricultural sectors. Besides, the database on a
number of items under the scheme is used by the Central Statistical
Organisation in connection with the compilation of national income estimates.
The scheme is
implemented in 19 states, namely, Andhra Pradesh, Assam, Bihar, Chattisgarh,
Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttaranchal and
West Bengal. The studies in the States,
except newly created States of Chattisgarh, Jharkhand, Uttaranchal are
undertaken by the Agricultural Universities/colleges located in their
respective States. As far as the three newly created States are concerned,
their parent institutions undertake these studies.
At present, the
scheme covers 28 crops i.e. paddy, wheat, jowar, bajra, maize, ragi, barley,
moong, urad, arhar, gram, masur, peas, groundnut, rapeseed and mustard,
nigerseed, soyabean, sunflower, safflower, sesamum, cotton, jute, sugarcane,
VFC tobacco, onion, potato, coconut and
black pepper.
The field data under the scheme are collected on the Cost
Accounting Method under which daily entries of debit/credit for the
expenditure/income are made in order to assess the total cost incurred/benefit
accrued by/ to each farmer covered under the scheme. The field data are collected by the field-men. The detailed questionnaire is filled
up/updated on monthly/annual basis after making enquiries on daily basis from
10 farm holdings which consists of 2 each from 5 different size classes viz. up
to 1 hectare, 1-2 hectares, 2-4 hectares, 4-6 hectares and above 6 hectares
allotted to each field-man.
The
Agro-Economic Research Scheme is an old Scheme started in 1954-55 for
undertaking research studies on agro economic problems of the country. The Scheme is being implemented through 12
Agro-Economic Research Centres and 3 Units which are fully funded by the
Government through Central Sector plan Scheme.
These Centres have been established to take up problem oriented studies
on regional basis with a view to generate the requisite feedback from the grass-root level, to facilitate
effective monitoring of various programmes/schemes implemented in the entire
country. While the Units mainly
undertake inter-regional and all India level studies, the Centres conduct
studies at the state level. On an
average 40-45 research studies are completed annually by these Centres , which
relate to various economic problems in
agriculture, animal husbandry, water management and allied areas.
1.3 Planning and
Management of Agriculture:
In order to facilitate a systematic assessment of the impact of these changes on the farm economy with focus on the state of Indian farmers, a Central Sector Scheme-Planning and Management of Agriculture- was formulated in 1998-99. This envisages conferences and workshops/ seminars involving eminent economists/agricultural scientists/experts , and short term studies, consultancy services for preparation of new decentralized strategy for development of crops, animals, dairy, poultry, irrigation, soil and water conservation etc. preparation of papers/reports based on the recommendations of the workshops/seminars etc .
The scheme also includes the provision for Millennium Study on
the state of Indian Farmers, which provide inputs for policy formulation from a
long-term perspective. With a
view to assessing the impact of past policies and programmes on the economic
well-being of the farmers, which has generally escaped attention of
researchers, a mega study entitled “State of the Indian Farmer – A Millennium
Study” was taken up by the Department of Agriculture and Cooperation during the Ninth plan. Phase – I of this study pertained to a
retrospective analysis of the agricultural development experience in the
post-independence era. Work on Phase- I was completed and reports were
published in 27 volumes.
The Situation
Assessment Survey (SAS) of Farmers, which constitutes Phase – II of the
Millennium Study, has been entrusted to the NSSO in the Ministry of Statistics
and Programme Implementation. The major areas covered under SAS include
consumer expenditure, income and assets, indebtedness, farming practices and
preferences, their awareness of technological developments, educational level
and access to modern technology. Out of the five Reports on the findings of the
Survey, three, viz.Indebtedness of Farmer Households, Some Aspects of Farming
and Access to Modern Technology of Farming have been released. The remaining
two,viz. Household Consumption Expenditure for Farmers and Income, Expenditure
& Productive Assets of Farmer Households are expected in the near future.
1.4 Strengthening of Agricultural Statistics & Agricultural
Policy Formulation
This
is a Central Sector Plan-Scheme. The
objective of this scheme is to strengthen the system of agricultural statistics
and policy formulation by strengthening the research techniques and upgrading
of skills of personnel involved in the compilation and analysis of data. Towards
this end, a National Workshop is held every year in which a large number of
representatives from Ministry of Agriculture, Central Statistical
Origanisation, National Sample Survey organization, Department of Space,
Commission for Agricultural Costs and Prices, State governments, research
Institutions like Indian Agricultural Statistics Research Institute (IASRI) and
State Agricultural Universities participate.
An
international conference, namely, the 20th session of Asia and
Pacific Commission on Agricultural Statistics (APCAS) was organized in the
month of September 2004 with the objective of improving Agricultural Statistics
in member nations. APCAS advises member nations on the development and
standardization of agricultural statistics within the general framework of
FAO’s work in the field of food and agricultural statistics. APCAS, which holds its Session every two
years, reviews current development in the compilation, analysis and
dissemination of data on different facets of food and agriculture. The
discussions in the 20th Session focussed on agriculture in its broad
sense covering crop production, livestock, forestry and fishing in the member
countries. The subjects on the agenda included application of remote sensing in
the forecast of crop area and production, forestry and fisheries, use of trade
flow data in agriculture policy formulation, development of country STAT as a
vehicle for organising national agriculture sector data, strengthening regional
data exchange system in food and agriculture statistics in Asia and Pacific
countries, analysis of agricultural census and surveys, including livestock
census data and plan for forthcoming world census of agriculture in 2010
2. Improvement of
Agricultural Statistics
Agriculture
Statistics Improvement (ASI) Division in the DES deals with implementation of
Plan scheme viz. “Improvement of Agricultural Statistics”. The basic objective
of the Scheme is to collect and improve agricultural statistics of Principal
Agricultural Crops and selected Horticultural Crops. The Scheme has four
components namely (i) Timely Reporting Scheme, (ii) Improvement of Crop
Statistics, (iii) Establishment of an Agency for Reporting of Agricultural
Statistics (EARAS) and (iv) Crop Estimation Survey on Fruits & Vegetables.
The component-wise details of the Scheme are given as under.
2.1 Timely
Reporting of Estimates of Area and Production of Principal Crops (TRS)
The objective of this component
is to obtain estimates of area of principal crops, in each season, with break
up of area under irrigated/unirrigated and traditional /high yielding varieties
of crops on the basis of priority enumeration conducted on the basis of random
sample of 20% of villages by a specific date. The States are required to
furnish these estimates by 30th November for Kharif Crops and by 30th
April for Rabi crops. These estimates are used for generating advance estimates
of production of principal crops. This component is being implemented in 16
land record States and also Union Territories of Delhi and Pondicherry. This
component has funding pattern on 50:50 basis between the Central Government and
State Governments.
2.2 Improvement of
Crop Statistics(ICS)
The objective of this component is to improve the
quality of statistics of area and production of crops through supervision and
monitoring. Under this component, a sample check of area enumeration and crop
cutting experiments of 10,000 villages and approximately 31,000 experiments at
harvest stage are undertaken. These samples are equally shared by the Central
Agency, i.e. National Sample Survey Organization and the State Agricultural
Authorities. These checks specifically relate to (i) Enumeration of crop-wise
area covered in the selected villages as recorded by the Patwari. (ii) Total of
the area under each crop recorded in Khasra Register of villages and (iii)
Supervision of crop cutting experiments at the harvest stage. This component is
being implemented in all TRS States and the Union Territory of Pondicherry. The
performance of the implementation of this component also is being closely
monitored through Quarterly and Seasonal progress Reports.
2.3 Establishment of an Agency for Reporting of Agricultural
Statistics (EARAS)
This
component is being implemented in the permanently settled States of West
Bengal, Kerala, Orissa and North Eastern States of Nagaland, Sikkim, Arunachal Pradesh
and Tripura. Under this component, an agency has been established in these
States for generating estimates of area and production of principal crops and
land use statistics, on the basis of complete enumeration of 20% villages in
each year. The performance of the implementation of the component is being
closely monitored through Quarterly and Seasonal Progress Reports.
2.4 Crop
Estimation Survey of Fruits, Vegetables and Minor Crops (CES-F&V)
This component is implemented to generate
estimates of area and production of fruits and vegetables in the country. The
component is being implemented in 11 States and a total of 14 crops are covered
(7 fruit and 7 vegetables). The methodology developed by the Indian
Agricultural Statistics Research Institute (IASRI) is being used for generation
of these estimates.
The different fruit and vegetable
crops covered are: apple, mango, citrus, pineapple, grape, banana, guava,
potato, onion, cabbage, cauliflower, tomato, ginger and turmeric. The States of
Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra,
Orissa, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh are covered under the
component.
The National Statistical
Commission (NSC) has recommended that the present methodology being followed for
CES-F&V should be replaced by an alternative cost effective methodology.
Accordingly, the IASRI has submitted a proposal for conducting study in two
States for testing the alternative methodology suggested by them on the lines
recommended by the NSC. Work on this is
in progress.
3. FORECASTING AND REMOTE SENSING
APPLICATION IN CROP HUSBANDRY
.1 REMOTE SENSING APPLICATIONS IN CROP
ASSESSMENT AND FORECASTING:
The Central Sector Umbrella Scheme viz. ‘Forecasting and Remote Sensing
Applications in Crop Husbandry’ during the Tenth Five Year Plan includes
following three components.
·
National Crop
Forecasting Centre (NCFC)
·
Crop Acreage
and Production Estimates (CAPE)
·
Special Data
Dissemination Standards (SDDS)
The
umbrella scheme of Forecasting and Remote Sensing Application in Crop Husbandry
comprising three ongoing components of NCFC, CAPE and SDDS was implemented
w.e.f 1.8.2004. Before 1.8.2004, these three components were being operated as
individual schemes.
National Crop Forecasting Centre (NCFC)
NCFC
was created at the end of the year 1998 and was set up mainly with the
following functions:-
i)
Periodic crop forecasting for major crops, and
ii)
Coordination
and assimilation of various methodologies and technical advancement relating to
crop forecasting.
However, over the time, its
sphere of activities has been expended to:
a)
Providing
effective unified institutional framework for the entire crop forecasting
system in the country involving data flow, assimilation, analysis and
dissemination of statistics.
b)
Periodic
crop forecasting for major crops through assimilation of information generated
by the different organizations such as IMD, Medium Range Weather Forecasting of
Department of Science & Technology, Department of Space (DOS), Central Statistical
Organization (CSO), Indian Agricultural Statistics Research Institute (IASRI),
Field Operations Division of the National Sample Survey Organization (NSSO) and
the State Agriculture Statistics Authorities (SASAs), State Agriculture
Departments etc.
c)
Coordination
and assimilation of various methodologies and technical advancement relating to
crop forecasting.
d)
Central
level monitoring of the situation about crop, weather, supply of inputs,
pests/diseases and related aspects through the mechanism of Crop & Weather
Watch Group in the Department of Agriculture & Cooperation.
e)
Providing
a forum for the Standing Technical Committee on Agricultural Statistics to
review and monitor the development of the methodologies for crop forecasting in
particular and Agricultural Statistics in general, which has already been
constituted as a follow up of the recommendation No. 8 of the Expert Group.
f)
Coordinating
the proposed projects/scheme on “Development and Application of Extended Range
Forecast System for Climate Risk management in Agriculture (ERFS)” and
“Forecasting of Agriculture output using Space, Agro-meteorology and Land based
observations (FASAL)”.
g)
During
the Ninth Plan, the professional posts envisaged for NCFC could not be created
and NCFC operated by ad-hoc deployment of professionals with a truncated
mandate.
This
activity was initiated during the 7th Five year Plan as one of the
components of the Scheme named ‘Remote Sensing Application Mission for
Agricultural Application’ (RSAMAA). The
Scheme was initially monitored by the Crops Division , but later on, it was
transferred to Directorate of Economics and Statistics. From 2004-05, this has been merged with the
umbrella scheme Forecasting and Remote Sensing Application in Crop
Husbandry. This activity is being fully
funded by the Ministry of Agriculture and executed under the overall technical
guidance of the Department of Space, Ministry of Science and Technology,
Government of India, with the help of State Remote Sensing Application Centres
(SRSACs), State Department of Agriculture (SDA), Directorate/Bureau of
Economics & Statistics (DESs) and State Agriculture Universities (SAUs). It aims at the estimating crop acreage and
yield, with the application of RS Technology, at least a month before the
actual harvesting of crops. In this
process, it enables development and upgradation of methodologies in consonance
with state of art RS technology and sensor capabilities for crop inventory
assessment at different geographical units.
Under the CAPE
activity, area and production estimates based on remote sensing technology have
been prepared for specified crops for the selected States/Districts during the
year 2004-05. Grants-in-aid are
provided to Space Application Centre, Ahmedabad for operationalising the activities
under CAPE.
Special Data Dissemination
Standards (SDDS)
Under this activity, quarterly estimates of agricultural production are
generated for use in the compilation of Quarterly National Accounts by the
Central Statistical Organization. This
activity has been undertaken in order to meet the obligations concerning supply
of data to the International Monetary Fund.
The estimates of quarterly crop production generated are being furnished
to the Central Statistical Organization.
In the absence of direct data, quarterly production is estimated by
using the estimates of Kharif and Rabi seasons in conjunction with crop
calendar.
In order to improve upon the quality of quarterly
estimates by way of refining the estimation procedure and cross validation of
results, available data from other sources such as Timely Reporting Scheme,
market Intelligence Unit of DES, National Sample Survey Organization etc .are
used. This is a staff oriented activity
under the umbrella scheme.
The DES also collects and compiles
wholesale and retail prices, international prices and market arrivals of
essential commodities on weekly/monthly basis for 700 centres (for wholesale
prices) and 83 centres (for retail prices) spread all over the country. Out of these price quotations, about 216
quotations on wholesale prices are being disseminated through E-mail to the
Office of Economic Adviser, Ministry of Industry, for construction of Wholesale
Price Index Numbers on weekly basis.
The price quotations collected are also disseminated in the form of
weekly bulletins and circulated through E-mail to concerned offices. Besides, daily wholesale prices of some
important agricultural products, in respect of Hapur and Delhi are also being
supplied to All India Radio for Broadcasting.