CROPPING PATTERN IN INDIA Cropping pattern means the proportional area w1der different crops at a particular point of time.

The cropping, pattern of any region 'is the outcome of a long process of historical evolution. The outstanding features of cropping pattern in India are as follows: (i) Net sown area increased from 1,187.5 lakh hectare in 1950-51 to 1,412.3 lakh hectare in 1999-2000. Broad cropping pattern indicates that though foodgrains have a preponderance in gross cropped area as compared to nonfoodgrains, their relative share came down from 76.7 per cent during 1950-51 to 65.8 per cent during 1999-2000. (ii) There are a wide variety of crops raised. (iii) In eastern India and coastal lowlands, especially the western coast south of Goa, rice is the predominant crop. Tea and jute are distinctive crops of east India. Jowar, bajra, pulses, cotton and groundnut are the chief crops in the plateau, while wheat is mainly raised in the alluvial plains of Uttar Pradesh, Punjab and Haryana. (iv) Food producing agriculture is strikingly concentrated upon three grain crops, e.g., rice, millet and wheat, with some maize and barley. Pulses come next in area, and then oilseeds. (v) Though a substantial area in India lies under tobacco, potatoes, fruits and vegetables, their share in the total cropped area is relatively small.

Sericulture in India Though India is the second largest silk producer in the World after China, it accounts for just 5% of the global silk market, since the bulk of Indian silk thread and silk cloth are consumed domestically. Germany is the largest consumer of Indian silk. The sericulture industry is land-based as silk worm rearing involves over 700,000 farm families and is concentrated in the three Southern states of Karnataka, Tamilnadu and Andhra Pradesh. (The states of Assam and West Bengal are also involved in the industry to a certain extent). The present market context for silk in India is one of vigorously growing internal demand for silk fabrics, with growth rates of above 10% per year. It is mostly for traditional (sari type) design and does not impose sophisticated quality requirements upon the industry. This situation is likely to continue, unless Indian sericulture is able to provide sufficient quantities of raw silk at affordable prices. The present trends represent a limitation to price increases for silk produced in India by import from other silk producing countries like China, Brazil, Korea etc., as well as by substitution with other fibres including by artificial silk. It also appears unlikely that the present demands can be met merely by expanding mulberry area in order to increase cocoon and raw silk production. Future additional output

in raw silk will therefore mostly have to come from substantial productivity increases, mainly area and labour productivity. Concurrently there is a growing demand for silk fabric among the growing Indian middle class and young urban consumers. These modern silk fabrics typically are produced by the expanding power loom weaving industry. The quality requirements imposed by this trend can only be met by bivoltine raw silk, although it is possible to produce high quality multi-bivoltine silk for conventional powerlooms. The bulk of todays world export demand is almost exclusively based on high graded quality bivoltine raw silk. If Indian sericulture is unable to generate a substantial production of bivoltine raw silk, these important market segments will continue to be lost to outside competitors. Hence, three main market segments offer great opportunity to Indias silk industry: (i) the broadening domestic traditional demand multi bivoltine based, (ii) the domestic demand for non-traditional silk fabrics, based atleast partly on non-graded bivoltine raw silk, (iii) the vast and expanding international market for raw silk, silk fabrics and ready-mades, based on graded bivoltine silk, an export potential as yet relatively little exploited by India. In one of the efforts of the Indian Government to promote the sericulture industry, the National Sericulture Project (NSP) was initiated as a national project operational in 17 States in India. The project funded by the Central and State Governments together with an input of foreign funds, has a credit portion from the World Bank and a grant contribution from Swiss Development Corporation. The project was started in 1989 for a period of six years with the objectives oriented toward increased production, improved productivity, quality and equity. One of the critical elements taken into consideration by the project was the dominant involvement of the Central and State Government organisations in the promotion of sericulture.

Apiculture
Apiculture is basically the study and management of honeybees. The apiculture process begins with the honey bees that collect nectar from flowers from which honey is prepared. Although most apiculture information consists of details on honeybees alone, in reality all bees play a very important role in the pollination of flowering plants and crops. Hence nowadays apiculture information also includes the study and management of non- Apis bees such as leafcutter bees and bumblebees. Honeybees are indigenous to the African and Eurasian continents. Bees basically collect nectar and pollen. Pollen is the source of protein that is required by the bees for the development of their breed whereas nectar is the carbohydrate that provides them with energy. Nectar is essentially a sugar solution that contains almost 80 % of water and 20 % of sugar and is produced by flowering plants. Honey bees tend to store this nectar in their honey sac when they are foraging and in this sac the enzyme invertase changes the complex sugars into simple sugars known as mono-saccharides. One the bees return to their hives they will disgorge the nectar solution that is partially converted and then give it to the other bees. Cereal crops such as plants like mango, coconut banana, cacao, peanut, citrus etc and corn are known to be the favorites of honey bees. Apiculture involves beekeeping which is a highly lucrative industry as there is a growing demand for honey and honey products. The ideal and best flow of honey is typically from the months of November to December. From the months of January to February the bee colonies will hibernate. In the wet season which usually lasts from July to August, the bee colonies are moved to the lowlands where they can find other sources of nectar. Honey is a non perishable natural product that is too dry for microbes to survive in and can be stored for long periods of time in a dry and cool environment. Honeybees are known to communicate with each other and transmit information pertaining to details about the quality, location and quantity of food sources. Apiculture also talks about the role of the bee keeper who needs to ensure that the temperature of the broods nest is maintained at between 30 to 34 degrees C even in the thick of winter. Honey bees can easily be affected by various microbes, viruses and mites and hence have to be monitored carefully.

Bee keeping (Apiculture)

Bee keeping is an agro based enterprise, which farmers can take up for additional income generation. Honey bees convert nectar of flowersinto honey and store them in the combs of the hive. Collection of honey from the forests has been in existence for a long time. The growing market potential for honey and its products has resulted in bee keeping emerging as a viable enterprise. Honey and wax are the two economically important products of bee keeping.

Advantages of beekeeping as anincome generation activity

y y y y

y y

Bee keeping requires less time, money and infrastructureinvestments Honey and beeswax can be produced from an area of little agricultural value The Honey bee does not compete for resources with any other agricultural enterprise. Beekeeping has positive ecological consequences. Bees play an important role in the pollination of many flowering plants, thusincreasing the yield of certain crops such as sunflower and various fruits. Honey is a delicious and highly nutritious food. By the traditional method of honey hunting many wild colonies of bees are destroyed. This can be prevented by raising bees in boxes and producing honey at home. Beekeeping can be initiated by individuals or groups The market potential for honey and wax is high

Production process Honey bees can be raised in boxes at the farm or home.

I. Poultry Industry in India

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Poultry is one of the fastest growing segments of the agricultural sector in India today. While the production of agricultural crops has been rising at a rate of 1.5 to 2 percent per annum, that of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. As a result, India is now the world's fifth largest egg producer and the eighteenth largest producer of broilers. Driving this expansion are a combination of factors - growth in per capita income, a growing urban population and falling real poultry prices. In the context of this emerging scenario, questions are being raised about the impact of the scaling up of production-through structural factors, externalities and policies-on small-scale producers. Do the transaction costs, policy distortion and environment externalities place the small-scale producer at a disadvantage? Why do some poultry farms have higher income than others? Do large farms earn more profit per unit of output than small ones? What explains the differentials in profitability? This report *, which forms part of an ongoing international comparison study on poultry, seeks to address these questions. It attempts to assess the impact of policy and environmental factors on the scale of poultry operations in India as well as the implications of that impact for small-scale production. The study aims to collect and analyze consistent data. * See Mehta R., Nambiar R. G., et.al., itLivestock Industrialization, Trade and Social - Health Environment Impact in Developing Countries: A Case Study of Indian Poultry Sectorle, (Mimeo) Phase I project report submitted to IFPRI, May 2002. The report is organized into eight chapters. Chapter 1 provides a short review of the poultry industry in India - how it has grown over the past two or three decades, the structure of the industry, changes in the scale of operations, and so on. Chapter 2 discusses the objectives

and scope of the study, along with hypotheses to be tested. Chapter 3 provides details about data and survey, focusing on survey location, sample size, timing of the survey, and problems encountered. In Chapter 4 the approach for estimating efficiency and scale economies is reviewed. Chapter 5 then presents data based on analyses of sample information about the accessibility of sample units to information, accessibility to assets, technology, production practices, environment, and marketing. These results are followed by estimates of mass balance results in Chapter 6. The empirical results based on application of the model outlined in Chapter 4 are discussed in Chapter 7. Finally, conclusions and policy discussions follow in Chapter 8.

1.1 Transformation from a Backyard Activity to a Major Commercial Activity

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The poultry sector in India has undergone a paradigm shift in structure and operation. A significant feature of India's poultry industry has been its transformation from a mere backyard activity into a major commercial activity in just about four decades. This transformation has involved sizeable investments in breeding, hatching, rearing and processing. Farmers in India have moved from rearing non-descript birds to today rearing hybrids such as is Hyaline, lt is Shaver, ll and in Babcock, lt which ensure faster growth, good liveability, excellent feed conversion and high profits to the rearers. The industry has grown largely due to the initiative of private enterprise, minimal government intervention, considerable indigenous poultry genetics capabilities, and considerable support from the complementary veterinary health, poultry feed, poultry equipment, and poultry processing sectors. India is one of the few countries in the world that has put into place a sustained Specific Pathogen Free (SPF) egg production project.

1.2 Regional Variation in Poultry Development

Another important aspect of poultry development in India is the significant variation in the industry across regions. Figure 1.1 illustrates egg production in India by state during 199899. The four southern states - Andhra Pradesh, Karnataka, Kerala and Tamil Nadu - account for about 45 percent of the country's egg production, with a per capita consumption of 57 eggs and 0.5 kg. of broiler meat. The eastern and central regions of India account for about 20 percent of egg production, with a per capita consumption of 18 eggs and 0.13 kg. of broiler meat. The northern and western regions of the country record much higher figures than the eastern and central regions with respect to per capita availability of eggs and broiler meat. Figure 1.2 shows egg production in India by region during 1992-93.

1.3 Growing Production of Eggs and Broilers

Table eggs and broiler meat are the major end products of the poultry sector in India. Presently production of eggs is estimated to number about 37 billion, that of broilers 895 million, and that of poultry meat 735,000 tonnes. The value of egg and poultry production in India during 1980-2000 is illustrated in Figure 1.3. In addition, organized facilities have been set up over the years for the manufacture of egg powder and frozen, processed broiler meat essentially to cater to export markets and markets in the metropolitan areas of India.

1.4 Increasing Scale of Operation

The growth of the poultry sector in India is also marked by an increase in the size of the poultry farm. In earlier years broiler farms had produced on average a few hundred birds (200-500 chicks) per cycle. Today units with fewer than 5,000 birds are becoming rare, and

units with 5,000 to 50,000 birds per week cycle are common. Similarly, in layer farms, units with a flock size of 10,000 to 50,000 birds have become common. Small units are probably finding themselves at a disadvantage because of high feed and transport costs, expensive vaccines, and veterinary care services and the non-availability of credit. Some small units are reported to be shifting from layer to broiler production because output in broiler units can be realized in six weeks.

1.5 Structure of the Poultry Industry

The structure of India's poultry industry varies from region to region. While independent and relatively small-scale producers account for the bulk of production, integrated large-scale producers do account for a growing share of output in some regions. Integrators include large regional firms that incorporate all aspects of production, including the raising of grandparent and parent flocks, rearing DOCs, contracting production, compounding feed, providing veterinary services, and wholesaling.

1.6 Concentration of Poultry Units Around Cities and Urban Centers

There has also been a growing tendency for poultry units to be concentrated around urban areas because of the existence of ready markets for the end products of poultry production.

1.7 Low Per Capita Consumption

Even though India is the world's fifth largest egg producer and the eighteenth largest producer of broilers, its per capita consumption of these products is poor - 37 eggs and 1 kg. of poultry meat per capita per annum. Here, again, there is considerable variation in per capita consumption between rural and urban areas and also across the region. Per capita consumption of eggs is only 7.7 per annum in rural areas compared with 17.8 per annum in urban areas. In seven states, per capita consumption is less than 3.5 per annum. Similarly, per capita consumption of poultry meat is 0.24 kg. in rural areas and 1.08 kg. in urban areas.

1.8 Slow Changes in Consumption Habits

An analysis of consumption data originating from National Sample Survey (NSS) rounds reveals many interesting facts. First, 42 percent of households are vegetarian in that they do not eat fish, meat or eggs. The remaining 68 percent of households are non-vegetarians. Over time there has been a gradual shift from vegetarianism to non-vegetarianism. The change is more visible in rural areas than in urban areas. For instance, between 1987-88 and 1999-2000, the proportion of households consuming only one of the three items - fish, meat or eggs - increased by only one percent in urban areas, while in rural areas this proportion increased by four percent. Second, calculation of income elasticity of demand for different commodity groups shows that the commodity group that includes meat, fish or eggs ranks second in the quantity of commodities consumed in rural areas (milk and milk products rank first), while in urban areas consumption of the meat, fish, or egg commodity group ranks third. The estimated income elasticity is 1.01 in rural areas and 0.66 in urban areas. Third, the price elasticity also follows the same order. Meat, fish or eggs have the high price elasticity of 0.75 in rural areas and 0.68 in urban areas. Fourth, estimates of income and price elasticities calculated for each of the four expenditure groups show that those elasticities tend to decline as one moves from the poor to the non-poor and the wealthy. The income elasticity is low for the wealthy - 0.5 in rural areas and 0.6 in urban areas. The other two income groups in rural areas have high-income elasticity - greater than unity. Price elasticities are greater than unity for the very poor and the poor in rural areas, and for the

very poor in urban areas. A significant policy implication of these consumption habits is that there is lot of scope in raising the demand for poultry products in rural areas.

1.9 Exports
Exports of poultry products from India comprise table eggs, meat, live birds and value-added products such as egg powder and frozen yolk. The value of aggregated exports was Rs. 1,683 million in 1996-97. Exports were expected to reach the level of Rs. 5 billion by the year 2000.

1.10 Employment
Three decades ago, when egg and broiler production was 10 billion and 30 million, respectively, the total employment numbers in the poultry sector were not so encouraging. As income and employment in the crop sector started diminishing, the non-crop sector, which includes dairy and poultry, underwent a significant shift. With the demand for poultry increasing and production reaching 37 billion eggs and 1 billion broilers, this sector now employs around 1.6 million people. At least 80 percent of employment in the poultry sector is generated directly by these farmers, while 20 percent is engaged in feed, pharmaceuticals, equipment and other services required by the poultry sector. Additionally, there may be a similar number of people roughly 1.6 million who are engaged in marketing and other channels servicing the poultry sector.

1.11 Issues Relating to Animal Welfare and Environmental Pollution

Issues relating to animal welfare and environmental pollution by poultry units have been of increasing concern in developed countries such as the U.S. and the European Union (E.U.). But in India these issues have not yet emerged as critical although they are discussed at length in various seminars and forums on poultry production. Considering globalization and the international trade in poultry products, however, these issues may assume significance in a few years because of pressures from importing countries such as those in the E.U.

1.12 Constraints on the Growth of the Poultry Industry

A major constraint affecting the growth of the poultry industry in India is the lack of basic infrastructure such as storage and transportation, including cold chain. As a result, there are wild price fluctuations in the prices of poultry products, i.e., eggs and broilers. Another constraint to growth is an inefficient marketing system. The presence of so many market intermediaries harms both the producer and the consumer. A third problem relates to the price availability of feed resources. Maize or corn plays a major role in broiler production, as it constitutes 50 to 55 percent of broiler feed. As the broiler industry is growing at the rate of 15 percent per annum, the demand for maize is thus likely to increase. Presently India grows only 11 million tonnes of maize and only 5 million tonnes are available for poultry, which is not sufficient if the current growth rate of the industry is to be maintained.

1.13 Policy Measures

The policy measures that are required to improve the poultry industry must involve: (a) improving infrastructure facilities, which will help not only to stabilize the price of poultry products in the domestic market, but will also make them available in remote areas; (b) creating an efficient marketing channel that will help provide remunerative prices to producers (in other words, India's marketing set-up should also grow along professional

lines); and (c) increasing maize production, which will involve using GM (genetically modified) seed varieties or, alternatively, will necessitate finding other sources of feed ingredients that can replace maize.