2. The state of agriculture in India is in an appalling
condition. It is manifested by the data that a
mere 0.01% of the GDP is being invested in a
sector which provides employment to nearly
70% of the population. The problems can be
essentially divided into two categories :
Yield and Productivity
When it comes to breaking the yield barrier, our
country has been far from it. The average annual
growth in crop yields has fallen from 3.5% in
1970 to a meagre 1.2% in recent times. This can
be attributed to the lack of proper farming
technology and awareness, poor irrigation
facilities and the lack of available funds to the
farmer.
Post Harvest Management
Another major cause for concern is the
inadequate resources available for post
harvest management. Nearly 50% of the
produce is destroyed in storage and
transportation. Researchers have suggested
that this wasted produce is capable of taking
care of the hunger problems in the country.
3. As is evident agricultural productivity in India faces tremendous challenges such as
lack of funds, inadequacy of technology and irrigation facilities, outdated
techniques of production as well as post harvest management among many others.
Our model seeks to introduce public private partnerships in the Indian agricultural
sector.
India today has become the hub of several renowned conglomerates which have
their branches spread across various nations in the world. These companies have
access to a large amount of capital, the latest technology as well as up to date
techniques to achieve higher productivity and meet performance targets.
Therefore this model aims to integrate the colossal amount of resources ,
intellectual property and initiative of private companies with the labour of the
farmers to result in the increased agricultural productivity in India.
4. Involves carrying
out extensive
research about
the amount of
land available for
agricultural
usage and their
owners. It also
involves
assembling
details of the
land i.e. size, soil
type,fertility,etc.
as classifying the
same into
different
grades(like Grade
A ,Grade B )
Involves
preparing a
detailed proposal
to be presented
to the land
owners and the
private
companies.
Various laws, acts
and policies
regarding
agriculture and
land acquisition
have to be
considered here.
Advice will be
taken from
professionals and
experts.
Involves
reaching out to
the central and
state government
so as to garner
support for the
initiative. This is
to convince the
government to
offer incentives
(like tax
holidays,rebates,
subsidies,relaxati
on of laws,etc.)to
private
companies to
encourage them
to participate in
this initiative.
Involves
presentation of
the
predetermined
proposal to the
land owners. The
proposal along
with incentives
agreed by the
government will
be presented to
the private
companies. This
phase is very
crucial as it aims
at convincing
both the parties
agree to be a part
of the initiative.
Involves the
setting up and
arrangement of
the auction
process. This
auction
symbolizes the
interaction
between the
landowners and
the private
companies. The
details of the
land as garnered
in phase 1 will be
displayed and
finally companies
will bid for the
land of their
choice.
5. TEAM A
AGRICULTURAL
RESEARCHERS
SOCIAL SCIENTISTS
PHASE 1 of our proposed solution involves
forming a team as manifested in the figure.
The main purpose of this team is to re-
identify all the land available for agriculture
of both commercial and non-commercial
crops. This will also categorising each piece
of land on basis on crops produced and the
type of soil. For example, a piece of land
near a river producing a high demand crop
such as wheat will be rated as Grade A, and
so on. Additionally, they will list the name
of the owners of the land, which will be
needed in the subsequent phases
MAKING DIRECTORY
6. A proposal to be presented to each land owner will be prepared after careful analysis of the various stakeholders involves as well as the laws prevalent
today. The proposal will contain the following salient features:-
1.The land available for agricultural usage as identified in phase 1 will be auctioned in the presence of the owners and private companies. These
companies will be informed about this auction and will therefore bid for the land of their choice.
2.The entire sale proceeds of the land will go to the land owners and after the completion of this process the title of ownership of the land will be
transferred to the private company.
3.After this ,the private companies will choose 3 crops (including 2 commercial and 1 non-commercial) which they would like to produce on the land
purchased.(examples of commercial crops are maize, wheat,rice,sugarcane,oil seeds)
4.The farmers will then start the process of production of the specified crops after gathering the required resources (like fertilizers, pesticides, new
technologies for enhanced productivity, funds for better irrigation facilities, training provided to them for introduction of better techniques of
production) from the private company. This entire process will be carried out under the direct supervision of the company.
5.The private company will oversee the above process so as to ensure high productivity is achieved, all predetermined targets of production are met on
time and proper post harvest management is carried out after the crops have grown.
6.After the harvest is done or production is complete, the private company will be allowed to use 30% of the crop produced as they like (i.e. as raw
material for finished goods or an ancillary good).
7. It is compulsory for the private company to sell the other 70% in the domestic market (a part of this 70% can also be exported. This right is exercisable
at the company’s discretion)
8. Lastly, a certain percentage of the profits as agreed upon (through proper discussion and dialogue) between the farmers and the company will be
distributed among the farmers employed. They will therefore be treated more as partners than labourers and will have a say in matters directly
affecting them.
7. This phase aims at garnering the support of the central and state government so as
to convince the government to provide incentives to the private companies to
participate in the initiative. This process involves filing various petitions with the
government and following the scalar chain as prescribed by law. These incentives
includes:-
1. Provide a monthly amount of Rs.5000 as relief to the private
company for training of farmers provided the company employs
a minimum of 80% agricultural workers from that particular area.
2. Subsidise the power and electricity utilized by the private
company under this initiative up to 15%.This rate varies with
change in the consumption of power(measured in kilowatt per
hour)
3. Subsidise the water supply as utilized by the private company
provided it is under this initiative.
4. Provision of tax holidays on the income earned from sale of the
produce in the domestic market (this includes processes which
make the product fit for the market)
8. THE FARMERS THE PRIVATE COMPANIES
A certain percentage of the profits will be distributed among
the farmers employed hence solving the ongoing farmer
suicide problem to a great extent.
The farmers will get access to new technology for production
for which they will be trained by the company so as to get
accustomed to new and updated techniques of production.
Farmers will get access to adequate irrigational facilities
hence improving the crop yield.
Lastly, this model will insure a fixed money income to the
farmers.
Private company will get to choose the crop it wants to
produce and use a part of the produce as raw material for its
core business and earn profits from sale of the other part.
The use of new technology and production on the larger
scale will minimize the cost of production.
The company will own the land after the auction, therefore
the cost of the land i.e. rent will be imputed
TEAM
B REGIONAL
REPRESENTATIVES
INDUSTRY LEADERS
INCENTIVES FOR
FARMERS AND THE
PRIVATE SECTOR
9. THE AUCTION PROCESS:
Each zone has been categorized into certain types
depending on the land usage, soil type, crop
pattern ,fertility levels and nature of the market ,
as mentioned in Phase 1.. The land available in
each area will be auctioned in the presence of
the land owners , private companies will
therefore bid for the land of their choice.
The entire sale proceeds of the land will go to the
owners. The land would be divided in 4
categories depending upon its fertility levels say
Type A-D. A single private company can bid up to
20% of the best Grade land available. Moreover,
that company will have to buy same portion of
the lower grade land in that area. This is done to
prevent monopoly like situation and help
increase productivity of lower grade land.
POST AUCTION:
The farmers will then start the process of
production of the specified crops after gathering
the required resources (like fertilizers, pesticides,
new technologies for enhanced productivity,
funds for better irrigation facilities) from the
private company which now own the land.
The private company will supervise all processes –
check productivity levels as well as proper post
harvest management.Eventually , after the
harvest is done or production is complete, the
private company will be allowed to use 30% of
the crop produced as they like (i.e. as raw
material for finished goods or an ancillary good).
It is compulsory for the private company to sell
the other 70% in the domestic market or even
export some portion of it.
STEP 1
• BIDDING
STEP 2
• PRESENTATION OF DETAILS
STEP 3
• TRANSFER OF OWNERSHIP
10. If the phases are brought about in satisfactory fashion, then there is no doubt about a phenomenal
impact. Through the public-private partnership, all the challenges faced by agriculture in the economy
today be more or less solved.
PROBLEMS WITH PRODUCTION
The auction process will ensure that the agricultural land will be efficiently distributed . Since the
companies will be entitled to a limited area of land, they will try to maximize the productivity to
generate maximum revenue. For example, a new genetically modified crop produced in America
will be instantaneously implemented by the said company in their region. Other factors such as the
technology available, irrigation , fertilizers etc will be used efficiently to maximize production.
POST HARVEST AND MARKET ACCESSIBILTY OF PRODUCE
Increasing productivity is only one part of the entire equation. Privatisation will ensure that
none of the produce is destroyed during post harvest processes.
Moreover the problems caused by middlemen are also eliminated. Middlemen are reported
to exploit the farmers to sell their produce at shockingly low prices. Many a time, they also
create artificial scarcity through hoarding which causes a steep rise in prices everywhere.
Here, the proposal ensures that the farmers do not get exploited and the produce is sold in
the markets at competitive prices.
11. EQUIPPING FARMERS WITH
TECHNOLOGY:
Critics may argue that since majority of the farmers ,
especially from the low economic regions are not
skilled/equipped to deal with upgraded advancements in
technology(which is needed for higher yield),this will
result in a low participation rate from the farmer's
side,posin5g a threat to the model . However , we
propose to solve this issue by organizing proper training
workshops for both skilled and unskilled farmers where
the farmers will be taught the very basics of using the
new technology. These workshops will be accompanied
by telephonic discussions and interviews with some of
the best scientists and researchers from all over the world
thus bridging the gap between the farmers and
agricultural experts.
EXPLOITATION OF FARMERS:
The last and the most important challenge is the fact that
the very concept of 'Privatisation' is based solely on profit
making implying need for better and higher yield which
can be met only by brining in new machines and
equipments. There's no denying the fact that a situation
may arise where private companies might want to try and
replace the farmers(manual labour) with advanced
machinery hence laving farmers jobless. Hence , issues
like these will be taken up in the joint follow-up
committee set up by the government which will make
sure that no such violations of contracts happen between
the farmers and private companies and both the parties
maintain their end of the bargain.
FARMER
EXPLOITATION
LACK OF
SKILLS
CHALLENGES
12. REFERENCES :
www.icar.com
www.en.wikipedia.org
www.oecd.org/eco/growth/46866991.pdf
National Bank for Agricultural and Rural Development Publications
Food and Agricultural Organisation of the United Nations
