India - Economic policy and the fourth five-year plan (Vol. 2 of 4)

RESTRICTED ~~ILL LW~1 AS1 22 Vol. 2 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTEIINATIONAL BANK FOR RECONSTRUCTION AND DtVE LOPiMJlN IN TERINATIONAL DEVELOPMENT ASSOCIAT ION INDIAN ECONOMIC POLICY AND THE FOURTH FIVE YEAR PLAN (in four volurnes) VOLUME II AGRICULTURAL POLICY IN INDIA May 23, 1967 Asia Department  EQUIVALENTS 1 Indian Rupee = U.S. $0. 13 1 U.S. Dollar = Rs. 7. 5 1 lakh - 100 thou,snd 1 crore = 10 million Metric tons are referred to as tonnes.  NOTE This Volume of the Report was prepared by Sir John G. Crawford assisted by W. David Hopper, Lorne Sonley and A. Van Nimmen.  TABLE OF CONTENTS Page PREFACE i BACKGROUND FACTS iii PART I: NEW POLICIES AND PROGRA.VfnlES 1 PART II: THE FOURTH PLAN TA.RGETS 1.0 PART III: INCENTIVES - PRICE POLICY 20 PART IV: THE CRITICAL INPUT FACTORS 27 (1) The Supply of Quality Seed for the High Y'ielding Varieties Programme 27 Hybrid Seeds 30 Rice and 'wneat 31 (2) Fertilisers 33 (3) Water 39 (4j Plant Protection Materials and Other Inputs 46 PART V: CREDIT 50 PART VI: RESEARCH AND EXTENSION 54 Research 55 Extension 57 Education 59 PART VII: THE CRITICAL M-ATTER OF FOREIGN EXCHANGE 61 PART VIII: CONCLUSION 67 MAPS: I, II, III APPENDIX I: SOME NOTES ON THE AGRICULTURAL OUTPUT TARGETS APPENDIX II: EXPLORATION INTO THE ECONOMICS OF HIGH YIELDING VARIETIES ANNEX TO APPENDIX II: NOTES ON PARTICULAR HYBRID VARIETIES APPENDIX III: PRICES APPFxnDTY TV: ESTTMATFD REOJITREMENTS OF FOREIGN EXCHANGE FOR AGRICULTURAL PROGRAM IN THE FOURTH PLAN  Ar.RITClTTTIN1AT POnT.TY TI TWTnTA PREFACE i. This report is principally designed to draw attention to important developments in agricul1tural policy snnounced in 1965/56 and now being imple- mented by the Government of India in collaboration with the several States of the IndiaL Federa tion. Tihese policy dvlpe1 are importnt Ud c(Vt for a re-appraisal of the programs to improve Indian agriculture. This re- apprisa hasledus o a more bopeful view of Ile out'lookfothensn I,J.O L -L -L~U U %'( ~JI II i. je UL LAL