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Transforming agriculture

sector of the economy. This approach is explained comprehensively in Chapters 9 to 16 and, therefore, only summarised below (Exhibit 6.3).

Transforming agriculture

Achieving the transformation desired will require the following actions: harnessing water resources; integrated development of rainfed areas; bringing waste and marginal lands into productive use; focusing on high growth sectors; and ensuring policy reform.

• Harnessing water resources: Harnessing all available water resources is critical to achieving the targeted levels of agricultural growth. This will require a three- pronged effort: realising the maximum irrigation potential of the State; improving the efficiency of the existing irrigation network; and managing water resources better through stakeholder participation. This effort is comprehensively discussed in Chapter 9, ‘Revitalising Agriculture’. It is therefore only summarised below.

17 Development of Women and Children in Rural Areas; Water User’s Associations; Chief Minister’s Empowerment of Youth; Vana Samrakshana Samitis.

Dynamic, Self-Reliant Rural Communities

Developing agriculture is the key to bringing prosperity to rural Andhra Pradesh and to the State’s economy.

To realise the full potential of surface and ground water resources, the State will construct and complete all feasible major and medium irrigation projects. Where there is no potential for major projects, for instance, in upland areas, it will promote minor irrigation and lift schemes. This effort has already begun through the implementation of existing irrigation schemes and the mobilisation of funds from the World Bank, the Overseas Economic Cooperation Fund (OECF), Japan, the National Bank for Agricultural and Rural Development (NABARD), and the flotation of ‘Irrigation bonds’ to complete ongoing projects.

To improve irrigation efficiency, the State will improve the maintenance of irrigation systems and introduce new technologies to enhance the productivity of water use. Improving maintenance will require a focus on operations and maintenance (O&M), an area that has suffered due to low recovery of operating costs and inadequate budgetary allocations. Going forward, the State will increase O&M budgets and ensure better recovery of operating costs. It will also draw on the assistance of water users themselves to improve irrigation efficiency. This will be part of the State’s effort to involve stakeholders in the management of water resources described below.

New technologies will be another important element of improving irrigation efficiency. These will include using an Irrigation Information System to ensure timely and adequate water supply, as well as water conservation technologies such as dynamic control systems and sprinkler and drip irrigation.

Finally, the State will standardise canals, drains and field channels to close the gap between irrigation potential created and the actual area irrigated.

To involve stakeholders in the management of water resources, the State will continue to encourage and support the Water Users’ Associations (WUAs). Their role is described more fully in the next chapter. Broadly, they will manage (i.e., operate and maintain) water resources by raising funds for maintenance, supervising works, deciding on water allocation and improving services. The State will also look to them to encourage water conservation and spread awareness of alternate irrigation systems such as the drip and sprinkler systems for horticulture.

To this end, the State will strengthen the WUAs, and train and improve the capabilities of their members. The goal for the WUAs will be to progressively take higher responsibility for managing the entire irrigation system.

Developing rain-fed areas: Agriculture in rain-fed areas is constrained by poor availability of water, small, uneconomical land holdings, low crop productivity, lack of assured supply of inputs, lack of technologies and cropping systems suited to dryland conditions, and poor extension and support services. To encourage agriculture in dryland regions, the State will promote soil conservation to prevent land degradation; orient research towards the development of dryland agriculture; promote allied sector activities; and ensure the availability of inputs

Dynamic, Self-Reliant Rural Communities

To realise the full potential of surface and ground water resources, the State will construct and complete all feasible major and medium irrigation projects.

such as seeds, fertilisers and pesticides. In addition, it will promote water conservation and harvesting, and encourage watershed development.

• Bringing wastelands into productive use: The State will need to bring wastelands and fallow lands into productive use. This will require substantial investments and the State will have to think through various innovative mechanisms to develop these lands. One method could be to create a business entity in which the government has an equity share, to develop these wastelands. The government equity could be distributed among landless labourers.

• Focusing on high growth sectors: As part of the growth agenda, the State will focus on growth engines in the agriculture sector. These will be rice, poultry, dairy and horticulture. The development of these growth engines will be stimulated through initiatives to provide infrastructure, deregulation or prudent regulation, focused skill building, and targeted promotion of Andhra Pradesh as the preferred destination for investment.

The development of the growth engines will provide a strong impetus to the development of agro-industry. In addition, the State will focus on developing agro-industries based on commercial crops such as oilseeds, cotton, sugarcane, tobacco and maize, since it has considerable strengths in these areas. The State will adopt the following comprehensive approach to developing agro-industries: strengthening the performance of the sector; shifting the Government’s role from regulation to facilitation; and developing sectors in which the State has built considerable strengths. The State will also focus on developing other important sectors such as seeds and fisheries.

• Ensuring policy reform: The growth of Andhra Pradesh’s agriculture will hinge on appropriate policy reform. This will require a comprehensive review and rationalisation of legislation relating to agriculture. The State will create a policy framework that induces growth, encourages private investment, and fully utilises natural resources; encourages people’s participation through appropriate reform in institutions and governance; and ensures the protection of the environment and public interest through suitable environmental and quality control regulations.

STIMULATING EMPLOYMENT IN INDUSTRIES, SERVICES

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