AGRICULTURE AND ALLIED SECTORS— INDIA & NIGERIA

Nigeria is predominantly still an agricultural society. It is blessed with agricultural resources. Approximately 70 percent of the population engages in agricultural production at a subsistence level. Most parts of the country experience rich soil, and good rainfall. Nearly 80 percent of the land is cultivable, and about 13 percent of the land is forested. Livestock are also maintained by farmers. The agricultural products of Nigeria can be divided into two main groups: food crops, produced for home consumption, and export products.

Its main food crops include beans, cashew nut, cassava, cocoa, groundnut, maize, melon, millet, palm oil, plaintains, sorghum, rice and yams. Rice is an important domestic crop. Cash crops include beniseed, cashew nut, cocoa, cotton, groundnut, gum Arabic, kola nut, palm kernels, rubber, soyabean, yams.Agriculture is the primary inter-phase between humanity and the environment. Agricultural sustainability, thus, can be described as the challenge of maintaining agricultural production while conserving or improving the quality of natural and managed ecosystems.Agriculture is ripe for a thorough overhaul in the country. Rising poverty and food shortage needs to be controlled at the earliest. About 90% of the total agricultural production in the country comes from the smallholders. However, agricultural services are not well geared to the needs of small farmers in Nigeria. Agricultural growth focused on small farmers promotes overall income and employment that goes a long way in reducing the curse of poverty. We need successful implementation of different strategies for bringing significant improvement in agricultural productivity, increasing farm-related employment and incomes, promoting better nutritional practices at all levels, and above all, promoting different programmes which provide an easy access and availability of food to the most vulnerable sections of the society.Although cocoa continues to be the leading export of the country, growth in this particular sector has been relatively slow since the abolition of the Nigerian Cocoa Board due to the dominance of smallholders.Agricultural production was badly affected in 2007 due to an early cessation of rains and lack of access to fertilizer. (Fertiliser, being a key input in agricultural production, contributes over 35 per cent of increase in crop production.) This resulted in 20% decline in sorghum production, 10% decline for maize, 10% for cowpea, and 10% for groundnut. However crops like cassava, cocoyams, yams and soyabeans (being less dependent on fertilizer) were least affected. As a result of reduced cereal output, traders stocks are low with a sharp hike in cereal prices.In Nigeria, demand for cereal by poultry, food processing industries and breweries is high. The cereal sector is becoming commercialized resulting in establishment of big grain markets in different areas, providing easy links between the remotely located farms (where the actual production takes place) and the potential buyers throughout the world. Although imports of cereals by Nigeria are forecast to remain above 4.5 million tones in 2008(wheat and rice), this represents only 15% of the country’s total domestic cereal utilization.

We need to make targeted investments in developing irrigation in Nigeria. Commercial farming is the future of agriculture in Nigeria. The government has a vision to take agriculture to all new realms by reducing the country’s growing dependence on the imported food, especially milk, dairy products, poultry and rice. To meet this challenge, there is an urgent need to prioritise irrigation development in the country with the capacity of large scale farming. We need active participation of both the government as well as private sector to bring the desired results.

In order to limit the impact of rising cereal prices on domestic food consumption, governments from both cereal importing and exporting countries have adopted different strategies like raising food subsidies, lowering import tariffs, and banning or imposing duties on basic food exports.

With high prices due to reduced supply, access to food by vulnerable people is likely to become difficult in the coming year. Onus lies on the government to increase access to food by vulnerable population through targeted food distribution. Adequate and timely provision of fertiliser is critical to attaining self sufficiency in crop production. The Federal Government decided to increase the quantities of fertiliser for procurement from 500,000 metric tonnes in 2007 to 650,000 in 2008. Other measures such as sales at subsidized prices, food for work or cash for work activities, are highly recommended. The government is already taking action in this regard and state governments are expected to complement the effort of the federal government from their buffer stocks. In each country, market and price conditions and the situation of vulnerable groups, need to be closely monitored to provide assistance as soon as it is necessary.

INDIAN AGRICULTURE—-2008: Agriculture is the backbone of Indian economy. Nearly 65% of the population earns its livelihood from agriculture. It contributes about 22% of GDP. Agriculture sector has witnessed some major and prominent advancement in production of food grains, poultry, dairy products, commercial crops and oil seeds. It has many firsts to its credit. It is the highest producer of milk and the largest exporter of cashews and spices.Main crops: its main crops include rice, wheat, jowar, bajra, tea, coffee, sugarcane, oilseeds, pulses, coconut, cotton, cashew, spices, rubber, cabbage, cauliflower, sapota, acid lime, mango, and banana.India is the largest producer of tea in the world. Tea, coffee and rubber are the major crops that are exported to various countries and contribute towards country’s economic growth and development. It ranks 3rd in the production of rubber in the whole world. It produces 4% of the total coffee production in the world. India holds great future in the production of horticulture crops including spices, vegetables & fruits, floriculture. The production of fruits witnessed an increase from 52.8 Million tones in 2004-05 to 54.4 Million tones in 2005-06.With around 100 million tones of milk production in the year 2006, India reigns supreme throughout the world. De-licensing of the dairy sector in 1991 has resulted in increased inflow of funds both from domestic as well as foreign investors.Livestock sector is a big boost to the country’s growth and development. India has the 2nd largest livestock population in the entire world. It contributes about 27% of the GDP from agriculture and allied industries. India has registered tremendous growth in this sector during the last ten years. Fishing provides bread and butter to about 14 million people in India and is emerging as a big source of foreign exchange earner.An adequate and organized credit is of paramount importance for the success of any sector, agriculture being no exception to it. In India, commercial banks (with a share of 70%), Cooperative Banks (20%) and Regional Rural Banks (10%) play a major role in ensuring smooth flow of funds to agricultural sector. Kisan Credit Card scheme was introduced by the government for extending loans to farmers for their cultivation requirements. During 2006-07, 5.337 Million new farmers were brought into the institutional credit system. A target of over US$56 Billion as farm credit and an addition of 5 Million new farmers to the banking system have been fixed for the year 2007-08. Over US$63 Million had been budgeted for fertilizer subsidies in 2006-07. However, according to the Revised Estimates, this will rise to US$112.7 Million. The government of India introduced National Agricultural Insurance Scheme in 1999 to protect the farmers against loss suffered due to crop failure on account of natural calamities such as floods, famines etc.Agricultural markets in India are unorganized to a large extent. Lack of adequate infrastructure facilities, poor transportation and lack of knowledge about the market prices are the factors responsible for exploitation of illiterate farmers by the middlemen. However, the government is awakening and taking serious note of these malpractices. In this concern, the ministry of Agriculture formulated a model law on agricultural marketing to bring the desired marketing reforms.E-Chaupal, an endeavour of ITC (International Tobacco Company), provides a business platform for connecting farmers to global markets.India’s total exports of agricultural and allied products at $10.5 billion in 2005-06 constitute 10.2% of its export share. Agricultural import contributes about 3% in total merchandise import to India. Major imports during April-October 2005 included vegetable oils (US$ 1237.3 million), raw cashew nut (US$ 287.8 million), pulses (US$ 281.8 million) and sugar (US$ 138.7 million).India had been insisting that special treatment for developing countries must be integral to all aspects, including to negotiated outcome, on agriculture under the Doha Round in the WTO. Government should foster stable and remunerative prices for domestic producers in order to increase productivity. National Commission on Farmers has been set up by the Government of India to bring significant improvement in the condition of Indian farmers. Some of the recommendations include asset reforms covering land, livestock and bio reserves, farmer friendly support services covering extension, training and knowledge, connectivity, credit and insurance, assured and remunerative marketing, inputs and delivery systems, and curriculum reforms in the agricultural universities.Government of India has created a widespread network of agricultural universities and institutes all over India to facilitate research and extension works in Indian agriculture. The Indian Council of Agricultural research (ICAR) is an endeavour at the national level to promote science and technology programmes in the area of agricultural research, education, and extension education.India’s economy is expected to grow by 7.8% in 2008 and 7.3% in 2009. It is expected to be the 3rd largest economy in the world by 2040 (5th largest by 2025). The government is trying to boost the country’s agricultural production. For the 11th five year plan (2007 -12), the government has the target to increase agricultural production by 4% per year in areas such as oilseeds, pulses and animal husbandry. It is encouraging investment in the nascent food processing sector. To promote trade and investment in the sector, the Indian government has facilitated duty free access for capital goods, extended loans to the food sector, and consolidated various food regulations into the Food Safety and Standards Act, 2006.

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