Economic Survey 2017-18

7. Agriculture and Horticulture

AGRICULTURE

7.1

Agriculture is the main occupation of the people of Himachal Pradesh and has an important place in the economy of the State. Himachal Pradesh is the only State in the country whose 89.96 per cent population (Census 2011) lives in rural areas. Therefore dependency on Agriculture/ Horticulture is ominent as it provides direct employment to about 62 per cent of total workers of the State.

7.2

Agriculture happens to be the premier source of State Income (GSDP). About 10 per cent of the total GSDP comes from agriculture and its allied sectors. Out of the total geographical area of State (55.67 lakh hectare) the area of operational holdings is about 9.55 lakh hectares and is operated by 9.61 lakh farmers. The average holding size is about 1.00 hectare. Distribution of land holdings according to 2010-11 Agricultural Census shows that 87.95 percent of the total holdings are of Small and Marginal farmers. About 11.71 percent of holdings are owned by Semi Medium and Medium farmers and only 0.34 percent by large farmers. The distribution of land holdings in Himachal Pradesh has been depicted in Table-7.1

7.3

About 80 percent of the total cultivated area in the State is rainfed. Rice, Wheat and Maize are important cereal crops of the State. Groundnut, Soyabeen and Sunflower in Kharif and Rapeseed/ Mustard and Toria in the Rabi season are important oilseed crops. Urd, Bean, Moong, Rajmash in Kharif season and Gram Lentil in Rabi are the important pulse crops of the State. Agro-climatically the State can be divided into four zones viz.:- • Sub Tropical, sub-mountain and low hills. • Sub Temperate, Sub humid mid hills. • Wet Temperate high hills. • Dry Temperate high hills and cold deserts. The Agro-climatic conditions in the State are congenial for the production of cash crops like seed potato, off-season vegetables and ginger.

7.4

The State Government is laying emphasis on production of off-season vegetables, potato, ginger, pulses and oilseeds besides increasing production of cereal crops, through timely and adequate supply of inputs, demonstration and effective dissemination of improved farm technology, replacement of old variety seed, promoting integrated pest management, bringing more area under efficient use of water resources and implementation of Wasteland Development Projects. There are four distinct seasons with respect to rainfall. Almost half of the rainfall is received during the Monsoon season and remaining precipitation is distributed among other seasons. The State received an average rainfall of 1,251 mm Kangra district gets the highest rainfall followed by Chamba, Sirmaur and Mandi.

Monsoon Season 2017

7.5

The performance of agriculture is closely related to the performance of monsoon. During the monsoon season of 2017 (June- September) in Himachal Pradesh the rainfall received was Normal in Bilaspur Hamirpur, Kangra, Kullu, Mandi , Shimla Sirmaur, Solan and Una deficent in Chamba and Kinnaur and was scanty in Lahaul and Spiti. For Himachal as a whole, the total rainfall during the entire monsoon season was (-)15 percent below the annual normal rainfall. The Table 7.2 shows southwest monsoon performance in various districts.

Crop Performance 2016-17

7.6

The economy of Himachal Pradesh is largely depend on agriculture which still occupies a significant place in the State economy as 9.4 percent of total State Domestic Product in 2015-16 was generated by agriculture and allied sectors and any fluctuations in the production of foodgrains affect the economy significantly. During the Twelfth Five Year Plan, 2012-17 emphasis has been laid on production of off-season vegetables, potato, pulses and oilseeds besides cereal crops through timely and adequate supply of inputs, bringing more area under irrigation, approach of watershed development, demonstration and effective dissemination of improved farm technology etc. The year 2016-17 agriculturally remained a normal year and the foodgrains production was anticipated around 17.45 lakh MT against 16.34 lakh MT achieved during 2015-16. The production of Potato was 1.96 lakh MT in 2016-17 as against 1.83 lakh MT in 2015-16. The production of vegetables during the year 2016-17 was 16.54 lakh MT as against 16.09 lakh MT in 2015-16.

Crop Prospects 2017-18

7.7

The food grain production target for 2017-18 are to be around 16.45 lakh MT. The Kharif production mainly depends upon the behaviour of south west monsoon, as about 80 percent of the total cultivated area is rainfed. The sowing of Kharif crops starts from the end of April and goes up to the mid of June. Maize and Paddy are the the principal food-grain crops growing during Kharif season. Other minor crops are Ragi, Millets and pulses. An area of 384.26 thousand hectare was sown under different Kharif crops. During this season about 20 percent of area is sown in the month of April-May whereas remaining area is sown in the month of June and July which is a peak Kharif sowing period. Due to normal rain in the most part of the State, the sowing could be done in time and overall crop condition was normal. However during Monsoon season 2016 there was heavy rain fall in some pockets of the State and standing Kharif crops were affected to some extent and the production of 9.55 lakh M.T. has been anticipated against the production target of 9.04 lakh M.T. for the Kharif 2016 season. During Rabi 2016-17 from October to December,2016 season the rain received were deficient by -93 percent in the post Monsoon season but the rains were received in the first fortnight of January, 2017, due to which late variety seeds were sown thus minimizing the possibility of loss due to draught. As such against the Rabi 2016-17 target of 6.97 lakh M.T. the total production of 7.90 lakh M.T. has been anticipated. The crop wise production of foodgrains and commercial crops in Himachal Pradesh during 2014-15, 2015-16, 2016-17 and target for 2017-18 is shown in Table 7.4

Growth in Foodgrains Production

7.8

There is limited scope of increasing production through expansion of cultivable land. Like whole country, Himachal too has almost reached a plateau in so far as cultivable land is concerned. Hence, the emphasis has to be on increasing productivity levels besides diversification towards high value crops. Due to an increasing shift towards commercial crops, the area under food-grains production is gradually declining as the area which in 1997-98 was 853.88 thousand hectares is likely to be declined to 764.85 thousand hectares in 2015-16. Increase in production thus reflects gain in productivity as is evident from the Table 7.5

High Yielding Varieties Programme (H.Y.V.P.)

7.9

In order to increase the production of foodgrains, emphasis has been laid on distribution of seeds of high yielding varieties to the farmers. Area brought under high yielding varieties of principal crops viz. Maize, Paddy and Wheat during the last five years and proposed for 2017-18 is given in table 7.6.

There are 20 Seed Multiplication Farms from where foundation seed is distributed to registered farmers. In addition, there are 3 Vegetable Development Stations, 12 Potato Development Stations and 1 Ginger Development Station in the State.

Plant Protection Programme

In order to increase the production of crops, adoption of plant protection measures is of paramount importance. During each season, campaigns are organised to fight the menace of crop disease, insects and pest etc. The Scheduled Castes/ Scheduled Tribes, IRDP families’ farmers of Backward Areas and small and marginal farmers are provided plant protection chemicals and equipments at 50 percent cost. It is the approach of the Department to reduce consumption of Plant Protection Chemicals by gradually switching to Biological control of pests/diseases. The subsidies are being met from the Non Plan. Achievements and Targets proposed in distribution of chemicals are shown in Table 7.7

Soil Testing Programme

In order to maintain the fertility of the soil during each crop season, soil samples are collected from the farmers’ fields and analysed in the soil testing laboratories. Soil testing laboratories have been established in all the districts (except Lahaul and Spiti), where as four mobile soil testing vans/labs out of which one exclusively for the tribal areas is in operation for testing the soil samples at site. These laboratories have been strengthened with latest equipments. At present 11 soil testing labs have been strengthened and 7 mobile labs have also been setup by the department and about 1.00 lakh soil samples are collected for soil analysis in a year. During 2015-16 and 2016-17, 69,635 Soil Samples were analyzed and about 3.85 lakh Soil Health Cards were distributed. During 2017-18 a target of 50,000 grid soil samples has been fixed and about 48,038 soil health cards will be provided. Soil testing programme has been adopted as Flagship programme by the Government It has been ensured to provide Soil Health Cards to every eligible farmer by the end of 12th Plan which will help farmers to know the soil status and nutrient requirement etc. in their fields and to adopt soil test basis recommendations to use nutrient in their crops/ fields. The soil fertility map is being prepared by the Chaudhari Sarwan Kumar Himachal Pradesh Krishi Vishav Vidyalaya Palampur by using Global Positioning System (GPS). The State Government has also declared soil testing as public service under H.P. Public Service Guarantee Act, 2011.

Organic Farming

The organic farming is becoming popular being sustainable, environmental friendly and health concern to all concerned. Organic farming is being promoted in the State in a systematic manner by providing trainings, laying out demonstrations, organizing fairs/ seminars to the farmers. It has also been decided to set-up vermi-composting units at every house. Under this scheme financial assistance of `6,000 per farmer is being provided (50 percent assistance for construction of Vermin pit size of 10x6x1.5 ft.). Beside this, incentive is being provided on approved organic inputs. For adoption of Organic Farming, incentive `10,000 per hectare (50 percent) and for certification `10,000 per hectare is being provided for 3 years.

Bio-Gas Development programme

Keeping in view the depleting sources of conventional fuel i.e. firewood, biogas plants have assumed great importance in the low and mid hills in the State. Till March, 2017 since inception, 44,778 Bio-gas plants have been installed in the State. During 2016-17, 107 number of Biogas plants were installed in the state and it was proposed to install 100 more Bio-gas plants during 2017-18 against which 25 number of such plants have already been installed upto December, 2017. This programme is at saturation stage.

Fertilizer Consumption and Subsidy

Fertilizer is a critical input, which helps in increasing the production to a great extent. The level of fertilizer consumption in 1985-86 was 23,664 tonnes, which is now increased to 56,491 tonnes in 2016-17. In order to promote balanced use of chemical fertilizers, a subsidy of `1,000 per MT on complex fertilizers have been allowed, use of water soluble fertilizers is promoted in a big way for which subsidy has been allowed to an extent of 25 percent of cost limited to `2,500 per quintal whichever is less. The subsidy is being provided under the Plan schemes. About 57,409 MT of fertilizers in terms of nutrients are proposed to be distributed during 2017-18.

Agriculture Credit

Traditionally, non-institutional sources of finance have been the major source of finance for the rural households due to various socio-economic conditions. Some of them have been lending at exorbitant rate of interest and since the poor own few assets, it is unviable for the financial institutions to secure their lending with collateral. However, the Government has taken measures to ensure timely and adequate supply of institutional credit to the rural households at reasonable rate of interest. In view of the propensity of the farmers to borrow money, most of whom are marginal and small farmers, credit flow for purchase of input is being made available by the banks. Institutional credit is being extensively disbursed but there is scope to increase the same particularly in respect of the crops for which insurance cover is available. Providing better access to institutional credit for small and marginal farmers and other weaker sections to enable them to adopt modern technology and improved agricultural practices has been one of the major objectives of the Government. The banking sector prepares crop specific credit plans and the credit flow is monitored urgently in the meetings of the State level Bankers Committee.

Kisan Credit Card (K.C.C)

The scheme is under successful operation for the last twelve to thirteen years in the State. More than 1955 bank branches are implementing this scheme. The total percentage of farmers covered under this scheme is nearly 43 percent of the total farmers

Crop Insurance Scheme

The State Government has introduced this scheme from Rabi, 1999-2000 season. Now Pradhan Mantri Fasal Bima Yojna(PMFBY) has been launched in the state from Kharif, 2016 season as per the administrative approval and operational guidelines issued by the Department of Agriculture, Ministry of Agriculture, Government of India. In this insurance scheme, Maize and Paddy crops have been covered during Kharif season. The different stages of risk leading to crop loss due to preventing sowing, post harvest losses, localized calamities and losses to standing crops (from sowing to harvest) have been covered under this new scheme. The scheme is compulsory to loanee farmers availing Seasonal Agricultural Operational (SAO) crop loans for the insurable crops from the Banks and Primary Agricultural Co-operative Societies (PACs) and optional for the Non loanee farmers. Under PMFBY claims beyond 350 percent of premium collected or percentage of claims to sum insured exceeds 35 percent whichever is higher at the National level, of all the companies combined, shall be paid by Center and State equally.The Government of India, Ministry of Agriculture has launched another Crop Insurance Scheme from Kharif, 2016 season called “Restructured Weather Based Crop Insurance Scheme. (R-WBCIS) The scheme intends to provide insurance protection to the cultivators against Natural Calamities which are deemed to adversely affect the Kharif crops during its cultivation period. Total 2.86 lakh farmers and 89,780 hectres have been covered till now upto Rabi 2016-17 season. Under this scheme, a budget outlay of `400.00 crore has been proposed for 2017-18 which has been utilized for the payment of State share of premium subsidy.

Seed Certification Programme

Agro-climatic conditions in the State are quite conducive for seed production. In order to maintain the quality of the seeds and also ensure higher prices of seeds to the growers, Seed certification programme has been given due emphasis. Himachal Pradesh State Seed Certification Agency registered growers in different parts of the State for seed production and certification of their produce.

Agriculture Marketing

For the regulation of agricultural produce in the State, Himachal Pradesh Agricultural/ Horticulture Produce Marketing Act, 2005 has been enforced. Under the Act, Himachal Pradesh Marketing Board has been established at the State level. The whole of H.P. has been divided into ten notified market areas. Its main objective is to safeguard the interest of the farming community. The regulated markets established in different parts of the state are providing useful services to the farmers. A modernised market complex at Solan is functional for marketing of agricultural produce, besides construction of market yards in different area. At present 10 market committees are functioning and 58 markets have been made functional out of which 19 mandies have been enrolled under e-markets. Under this head of development, no funding is made from State Plan and revenue generated under this Act is utilized for raising infrastructure needed for ensuring remunerative marketing of the Agriculture Produce. The H.P. Agricultural Produce Market Act has also been amended on the lines of Modal Act circulated by Government of India. With this a provision has been made for setting up the private markets, direct marketing, contract farming and single point levy of entry fee. The markets are also being computerized. All the activities have been taken up by the Marketing Board through their own funds and RKVY.

Tea Development

Total area under tea is 2,310 hectares with a production level of 9.21 lakh Kgs achieved in 2016-17. Schedule Caste tea planters are provided agriculture inputs on 50 percent subsidy. In the last few years, there is slump in the market and tea industry has been affected badly. It is envisaged to give impetus for effective and remunerative returns of this commodity to the producers. Focus would also be on result and demonstration.

Agriculture Mechanisation

Under this scheme, new farm implements/ machines are popularized among the farmers. Testing of new machines is also done under this programme. The department proposes to popularize small power tillers and implements suited to hilly conditions.

Soil and Water Conservation

Due to topographical factors the soil is subject to splash, sheet and Gully erosion resulting into degradation of the soil. Besides this there is biotic pressure on the land. To curb this menace particularly on the Agriculture lands, the Department is implementing two soil and water conservation schemes under state sector. The schemes are:- i) Soil Conservation Works. ii) Water conservation and development. Water conservation and minor irrigation programme has been accorded priority in order to boost agriculture production. The Department has prepared a plan to harvest rain water by constructing tanks, Ponds, check-dams and storage structures. Besides this, low lifting water devices and efficient irrigation system through sprinklers are also being popularized. In these projects, major thrust would be on soil and water conservation and creation of employment opportunities at farm level.

Dr. Y.S. Parmar Kisan Swarozgar Yojna

In order to achieve faster and more inclusive growth in agriculture sector, Government of Himachal Pradesh has started “Dr.Y.S.Parmar Kisan Swarozgar Yojna.” Project components include creation of need based infrastructure and are expected to fulfil the objectives of high productivity, quality, safeguard against adverse weather, efficient input use etc. Project components include construction of location specific models of poly houses with micro irrigation facility. For this, 85 percent project assistance shall be provided to the farmers. Also for creation of water sources individually and collectively by a group of farmers, (low/ medium lift, pumping machinery) 50 percent subsidy shall be provided.

Rashtriya Krishi Vikas Yojna (RKVY)

Concerned by the slow growth in agriculture and allied sectors, the Government of India has launched Rashtriya Krishi Vikas Yojna. The RKVY aims at achieving 4 percent annual growth in the agriculture sector during this Plan period, by ensuring a holistic development of Agriculture and allied sectors. The main objectives of the scheme are as under:- 1. To incentivize the States so as to increase public investment in Agriculture and allied sectors. 2. To provides flexibility and autonomy to states in the process of planning and executing Agriculture and allied sector schemes. 3. To ensure the preparation of agriculture plans for the districts and the states based on agro- climatic conditions, availability of technology and natural resources. 4. To ensure that the local needs/ crops/ priorities are better reflected in the agricultural plans of the states. 5. To achieve the goal of reducing the yield gaps in important crops, through focused interventions. 6. To maximize returns to the farmers in Agriculture and allied sectors. 7. To bring about quantifiable changes in the production and productivity of various components in Agriculture and allied sectors by addressing them in a holistic manner. The Government of India has allocating funds for agriculture growth which includes Horticulture, Animal Husbandry, Fisheries and Rural Development. The budget provision amounting to `39.00 crore has been made in favour of Agriculture Department for the year 2017-18. However, projects worth `22.94 crore has been approved by SLSC under RKVY for the year 2017-18.

National Mission on Agricultural Extension & Technology (NMAET)

During 12th Five Year Plan the National Mission on Agricultural Extension and Technology (NMAET) has been launched to make the extension system farmer-driven and farmer arrangement of technology dissemination. NMAET has been divided into Four Sub-Mission. 1. Sub Mission on Agriculture Extension (SAME). 2. Sub Mission on Seed and Planting Material (SMSP). 3. Sub Mission on Agriculture Machanization (SMAM). 4. Sub Mission on Plant Protection and Plant Quarantine (SMPP). The new component will be in the ratio 90:10 Centre and State share. An expenditure of `250.00 lakh is anticipated during 2017-18 out of State Plan.

National Mission on Sustainable Agriculture (NMSA)

Sustainable agriculture productivity depends upon quality and availability of Natural resources like soil and water. Agricultural growth can be sustained by promoting conservation and sustainable use of these scarce natural resources through appropriate location specific measures. Thus, conservation of natural resources in conjunction with development of rain fed agriculture holds the key to meet burgeoning demand for food grain in the state. Towards this end, National Mission for Sustainable Agriculture (NMSA) has been formulated for enhancing agricultural productivity especially in rain fed areas. Main deliverable under this mission are: 1. Developing rain fed agriculture. 2. Natural resources management. 3. Enhancing water use efficiency. 4. Improving soil health. 5. Promoting conservation agriculture. It is a centrally sponsored scheme and the component will be in the ratio of 90:10 center and state share respectively. An expenditure of `200.00 lakh is anticipated during 2017-18 under State Plan.

National Food Security Mission (NFSM)

The National Food Security Mission (NFSM) aimed at to enhance the production of Rice, Wheat and Pulses.NFSM has been launched in the State from Rabi 2012 with two major components viz.NFSM-Rice and NFSM-Wheat.Under NFSM-Rice is in operation in three districts of state and whereas NFSM-Wheat in nine district with 100 percent assistance from Central Government. The aim of Mission is to increase production of Rice and Wheat through area expansion and productivity enhancement restoring soil fertility and productivity, creativity employment opportunities and enhancing level of farm economy in targeted districts. An expenditure of `165.00 lakh is anticipated during 2017-18 under State Plan.

Pradhan Mantri Krishi Sinchai Yojana:

In an attempt to improve the Agricultural productivity, the government of India has started a new scheme, viz. Pradhan Mantri Krishi Sinchai Yojana (PMKSY). Micro-irrigation projects (“Har Khet Ko Pani”) and end-to-end irrigation solutions will be the key focus of this scheme. “The major objective of the PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation, improve on-farm water use efficiency to reduce wastage of water, enhance adoption of precision-irrigation and other water-saving technologies”. Under this scheme a budget provision of `2.00 crore has been proposed for the year 2017-18 under state plan.

Rajiv Gandhi Micro-Irrigation Scheme

State Government is commited to promote Agriculturte in the State by increasing the productivity of crops. For efficient system of irrigation the Government has launched crucial Project named ‘Rajiv Gandhi Micro-Irrigation Scheme’ with an outlay of `154.00 crore over a period of 4 years starting from 2015-16 to 2018-19. Through this project 8,500 hectare area will be brought under Drip/ Sprinkler Irrigation System benefitting 14,000 farmers. The subsidy @ 80 percent for the installation of Micro-Irrigation systems such as Drip, Micro, Mini Portable Sprinkler, Semi-Permanent Sprinkler and large volume Sprinkler and 50 percent for augmentation of water sources would be provided to the farmers. During 2016-17, an area of 709.85 hectares has been brought under Micro-irrigation Systems and 1183 farmers were benefitted. A budget provision of `10.00 crore has been made for this component during 2017-18.

Uttam Chara Utpadan Yojna

With a view to increase fodder production in the state, the state Government has launched a scheme; ‘Uttam Chaara Utpadan Yojana’for fodder development by bringing an area of 25,000 hectare under fodder production. Quality seed of fodder grasses, cuttings, seedings of improved fodder varieties will be supplied on subsidized rates to the farmers. Subsidy on Chaff Cutters is available to the SC/ ST and BPL farmers. A provision of `6.00 crore has been proposed for 2017-18.

HORTICULTURE

The rich diversity of agro-climatic conditions, topographical variations and altitudinal differences coupled with fertile, deep and well drained soils favour the cultivation of temperate to sub-tropical fruits in Himachal. The region is also suitable for cultivation of ancillary horticultural produce like flowers, mushroom, honey and hops.
This particular suitability of Himachal has resulted in shifting of land use pattern from agriculture to fruit crops in the past few decades. The area under fruits, which was 792 hectares in 1950-51 with total production of 1,200 tonnes increased to 2,29,202 hectares during 2016-17. The total fruit production in 2016-17 was 6.12 lakh tonnes, while during 2017-18 (upto December,2017) has been reported as 5.00 lakh tones. During 2017-18, it was envisaged to bring 3,000 hectares of additional area under fruit plants against which 2,552.44 hectares of area was brought under plantations and 6.69 lakh fruit plants of different species were distributed upto 31st December,2017.
Apple is so far the most important fruit crop of Himachal Pradesh, which constitutes about 49 percent of the total area under fruit crops and about 85 per cent of the total fruit production. Area under apple has increased from 400 hectares in 1950-51 to 3,025 hectares in 1960-61 and 1,11,896 hectares in 2016-17.
This pace of development is further jeopardized due to the erratic apple production, owing to weather vagaries and market fluctuations. The advent of WTO, GATT and liberalisation of economy is further imposing many challenges on the dominance of apple in fruit industry of Himachal Pradesh. The fluctuations in the production of apple during last few years have attracted the attention of the Government. It is necessary to explore and harness the vast horticulture potential of the hill State through diversified horticulture production in varied agro-ecological zones.

This pace of development is further jeopardized due to the erratic apple production, owing to weather vagaries and market fluctuations. The advent of WTO, GATT and liberalisation of economy is further imposing many challenges on the dominance of apple in fruit industry of Himachal Pradesh. The fluctuations in the production of apple during last few years have attracted the attention of the Government. It is necessary to explore and harness the vast horticulture potential of the hill State through diversified horticulture production in varied agro-ecological zones.

Horticulture Development scheme is the major programme aiming at the creation and maintenance of infrastructural facilities in the rural areas for ensuring equitable access to the resources and inputs required for the promotion of all fruit crops. Under this scheme, the programmes like development of fruit production, area expansion programme, demonstration of new technologies and improved package of practices on the orchards of fruit growers, development of Walnut/ Hazelnut / Pistachio nut, mango / litchi, strawberry and olive are being implemented.
The fruit growers should get better price of their produce, for this purpose Marketing Intervention Scheme is being implemented in the State. Under this scheme during the year 2017-18 the procurement price of Apple has been increased to `7.00 per Kg., Citrus fruits B and C grade Kinnow, Sagntra, Malta up to 500 MT raised to `7.00 per Kg. and `6.50 per Kg. and rate of Galgal fruit up to 100 MT increased to `5.50 per Kg. where as the procurement price for Mango is `5.50 per Kg. of seedling Mango up to 300 MT and `6.50 per Kg. of grafted Mango up to 200 MT. This year 30,658 MT C-grade Apple fruit value to `21.46 crore has been procured under this scheme. However no Mango fruit (Seedling and Grafted varieties) was offered for procurement.
In warmer area of the State mango has emerged as an important fruit crop. Litchi is also gaining importance in certain regions. Mango and litchi are fetching better market prices. In the midhill zone, the agro-climatic conditions are highly suitable for the successful cultivation of new fruits

like kiwi, olive, pomegranate, pecan and strawberry. The production of fruits for the last three years and current year upto December,2017 is given in table 7.9.
To bring diversification in horticulture industry a total area of 156.19 hectares has been brought under flower cultivation upto 31.12.2017. To promote flower cultivation two Tissue Culture Laboratories have been established under Model Flower Cultivation Centres at Mahogbagh (Chail, District Solan) and Palampur District Kangra. Four Farmers Cooperative Societies are functioning for the production and marketing of flowers in district Shimla, Kangra, Lahaul and Spiti and Chamba. Ancillary horticultural activities like mushroom and Bee keeping are also being promoted. During 2017-18 upto December, 2017, 429.76 MT of pasteurized compost for mushroom was prepared and distributed from the department units located at Chambaghat, Bajoura and Palampur. A total of 5,077.00 MT of mushroom was produced in the State upto December,2017. Under the Bee keeping programme, 286.70 MT of honey has been produced upto 31.12.2017 in the State.
The weather based Crop Insurance Scheme was initially launched in Himachal Pradesh in 6 Blocks for apple crop and in 4 Blocks for Mango crop during Rabi 2009-10. In view of the popularity of this scheme, the coverage under this scheme has been extended during the consecutive years. During 2017-18, the scheme is being implemented in 36 Blocks for Apple, 41 Blocks for Mango, 15 Blocks for Citrus, 13 Blocks for Plum and 5 Blocks for Peach crops. In addition to this, to protect apple fruit crop from hailstorm 19 Blocks have been covered under Add-on cover scheme. From the year 2016-17 name of the scheme has changed to Restructed Weather Based Crop Insurance Scheme (R-WBCIS) and sum insured has been revised and bidding system has been introduced. During Rabi season 2016-17, 95,283 farmers have been covered under Restructed Weather Based Crop Insurance Scheme for apple, peach, plum, mango and citrus fruit crops who have insured their 79,22,387 trees for which the State Government has borne 25 percent premium subsidy of `14.05 crore.
For the implementation of centrally sponsored scheme RKVY during the year 2017-18 funds amounting to `350.00 lakh have been received as approved allocation as per availability of funds out of which `175.00 lakh have been released so far as 1st installment and a total number of 13,537 farmers have been benefitted from the year 2007-08 to December, 2017 under this scheme. For “Horticulture Development through Farm Mechanization” funds amounting to `300.00 lakh and for “Establishment of Mushroom units in Private Sector” funds amounting `50.00 lakh have been received. For the implementation of the Centrally Sponsored Scheme MIDH during the year 2017-18 funds amounting to `35.55 crore have been approved, out of which `11.11 crore have been received and a total number of 2.33 lakh farmers have been benefited from the year 2003-04 to December,2017 under the scheme. To promote protected cultivation in horticulture, the State Government has enhanced subsidy under Poly Houses from 50 percent to 85 percent and 33,500 sq. metre area is targeted under Green Houses during year 2017-18. To protect fruit crops especially apple from hailstorms, the State Government has enhanced subsidy on Anti Hail Nets from 50 percent to 80 percent by targeted to bring 7.02 lakh Sq. metre area under Anti Hail Nets during the year 2017-18.

Himachal Pradesh Marketing Corporation (HPMC)

H.P.M.C. a State public undertaking was established in the Pradesh with the objective of marketing fresh fruits and vegetables, processing the unmarketable surplus and marketing the processed products. Since its inception, HPMC has been playing pivotal role in the life of fruit growers of the state by providing them remunerative returns of their produce.
During the year 2017-18 up to 31st December, 2017 HPMC has registered overall turnover of `4,567.16 lakh against the target of `9,200.00 lakh fixed for the financial year 2017-18. Under Market Intervention scheme, during the year 2017-18, the Govt, of H.P. continued a policy of market intervention scheme (MIS) of Mango, Apple and Citrus fruit in the state with the support price as under:-

Also, under Market Intervention Scheme (MIS-2017) for apple the HPMC has procured about 15,926 MT. The Corporation processed 8,311 MT Apple of “C” grade and extracted 746.00 MT Apple Juice Concentrate during the financial year 2017-18. The Corporation has not procured any fruits as on 15th of January, 2018 from the growers under MIS 2017-18. The corporation is mainly supplying its products to its bulk buyers, Railway, Northern Command Head quarter Udhampur, various religious institutions, M/S Parley and other reputed Institutions, retail outlets and kiosks in the country. The Corporation has sold 419.46 MT of Apples juice concentrated for `573.41 lakh and other process products for `966.57 lakh to these institutions. HPMC also continued supplying fruits and vegetables to ITDC Hotels and institutions in Metro cities Delhi, Mumbai and Chandigarh. As on 31.12.2017 HPMC has supplied fruits and vegetables worth `457.85 lakh to these institutions. HPMC has sold material worth `354.73 lakh to the growers in the State. The Corporation has generated revenue of `515.97 lakh through its Cold Stores in Delhi, Mumbai, Chennai, Parwanoo and five Controlled Atmosphere stores of producing area of Himachal Pradesh. The corporation has traded fruits to the value of `81.04 lakh and generated income of `502.79 lakh from trucks, rent, commission earned and sale of other material such as Packaged Drinking Water, Mineral Water, farm inputs, tax paid items of other company etc. till the end of December, 2017 and also the Corporation has sold PP food worth of `1539.98 lakhs in the domestic market up to December, 2017.
The Corporation has been able to got sanctioned total grant in aid `3,449.95 lakh to HPMC for up gradation of Technology from APEDA. Government of India. These have been got for the following projects:- i. Up- gradation of packing houses of Jarol Tikker (Kotgarh), Gumma (Kotkhai), Oddi (Kumarsain), Patlikuhl (Kullu) and Reckong Peo with 100 percent financial assistance of `797.30 lakh. ii. The HPMC has commissioning of two CA Stores at Gumma and Jarol-Tikkar in District Shimla with grant in aid of `1,009.00 lakh. iii. Setting up of one modern vegetable pack house and cold room at Nadaun District Hamirpur and setting up of Pack house and cold room for packing grading of fruits, vegetables, flowers and culinary herb at Ghumarwin in District Bilaspur with 100 percent grant in aid of `788.50 lakh. iv. Replacement of Tetra Pack filling machine TBA-9 in to TBA-19 under 100 percent grant in aid of `355.15 lakh to installed at fruit processing plant Parwanoo District Solan to improved the efficiency in production. v. Grant in aid to the tune of `10.00 crore for the up gradation of AJC Plant at Parwanoo has been sanctioned. In addition to above, last year HPMC has converted 3 cold storages into CA stores with a capacity of 700 MT each at Rohru, Oddi and Patlikuhl with financial support from the Himachal Pradesh Government through NABARD loaning and further leased out to the parties and has started return on investment. vi. HPMC is looking forward to upgrade the remaining existing infrastructure of pack house, cold store, CA store and Fruit Processing Plant etc. Also to set up same viable green field project in the catchment area with modern technology to facilitate the farmers under PPP mode so that good and efficient marketing results comes out to increase the revenue for the corporation. Also considering other Non-Performing Assets (NPA) and loss going unit to privatize for operational purposes like CS Delhi, Chennai and Parwanoo.
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