Macro Management of Agriculture

The Macro Management of Agriculture Scheme is one of the centrally-sponsored schemes formulated with the objective to ensure that central assistance is spent on focused and specific interventions for the development of agriculture in states. It became operational in 2000-01 in all states and UTs.

The scheme provides sufficient flexibility to the states to develop and pursue the programmes on the basis of their regional priorities. Thus, the states have been given a free hand to finalize their sector-wise allocation as per requirements of their developmental priorities.

The scheme initially consisted of 27 centrally-sponsored schemes relating to cooperative, crop production programmes (for rice, wheat, coarse cereals, jute, sugarcane), watershed development programmes (NWDPRA, River Valley Projects [RVP]/Flood-Prone Rivers [FPR]), horticulture, fertilizer, mechanization and seeds production programmes.

However, with the launching of the National Horticulture Mission in 2005-06, 10 schemes pertaining to horticulture development were taken out of
the purview of this scheme.

Pattern of Assistance
The approved pattern of assistance under the scheme is in the ratio of 90:10 between the centre and the states respectively, except in the case of north–eastern states, in case of which 100 per cent central assistance is extended. Central assistance to the states is released in two installments in the ratio of 80 per cent as grants and 20 per cent as loans. The Government of India has approved separate guidelines for implementation of the scheme. According to these guidelines, 50 per cent of the allocation is to be released as a first installment.

The release of the second and final installment is considered on the fulfillment of the following conditions:
• Utilization Certificate for the funds released up to the previous financial year.
• Expenditure of at least 60 per cent of available funds i.e., unspent balance of the previous year plus the releases in the first installment.
• Full release of the corresponding share of the State Government.
The scheme further provides that the release of the second and final installment shall be made on a ‘graded’ basis, depending on the time of reporting of the utilization of the amount sanctioned, as also the receipt of the complete proposal for release of the second installment.

The following three institutions have been commissioned to make an impact assessment of the Macro Management of Agriculture Scheme in the areas:

IIM Calcutta
North-Eastern States and Sikkim
Bihar, Jharkhand, Orissa, West Bengal and Andaman &
Nicobar Islands

NABARD Consultancy Limited
Gujarat, Rajasthan and Dadra & Nagar Haveli
Madhya Pradesh, Maharashtra, Goa & Chhattisgarh
Andhra Pradesh, Tamil Nadu, Kerala, Karnataka,
Pondicherry & Lakshadweep

Agricultural Finance Corporation Limited
Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir
Uttar Pradesh & Uttarakhand