During the third five year plan out of the total plan outlay of Rs. 8,577 crore 20.5 per cent (Rs. 1,754crore) was allocated to agriculture. The achievement of self-sufficiency in food grains and increased agricultural production to meet the requirements of industry formed one of the five basic objectives of the third plan.
The plan target fixed 30% increase in the output of food and non-food crops but the actual production remained far behind the target due to wars with China (I962) and Pakistan (1965) and severe drought (1965-66) conditions. Although the food grain production registered an increase of 8.5% during the first four years of the plan, it fell down sharply (decline of 19%) during the last year (from 82 million tons in 1960-61 to 89 million tons in 1964-65 and 72.3 million tons in 1965-66).
Similar fluctuating trend was also observed in the production of oil seeds, cotton, and jute. On the contrary advancing trend was noticed in the output of sugarcane. Although the plan was utter failure but it gave a new thrust to the country’s agriculture by launching IADP (intensive agricultural district programme), IAAP (intensive agricultural area programme) and stepping towards self-sufficiency.