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  1. 1. Sowing Prosperity: Boosting Agricultural Productivity POLICY RE-ORIENTATION CENTERING ON AGRI- BUSINESS DEVELOPMENT TEAM NAME: Modern Theorists TEAM MEMBERS: Deepak Mehta, Jailam Mujuthaba, Aarti Thamma, Zainab Madraswala and Sneha Natraj. GITAM UNIVERSITY, VISAKHAPATNAM
  2. 2. The number of farmers in the industry significantly declined and agricultural lands being transferred to commercial businesses is increasing.  The over 600 million Indians dependent on agriculture.  There are 9 million fewer farmers today than there were in 2001.  In India ,Agriculture is the backbone of the Indian economy. 60% of the country’s population is dependent on agricultural sector in spite of which there has been a decrease in growth in the year 2012-2013 of 2.1% as compared to the growth rate of 3.4% in 2011-2013. CAUSES OF DECLINE IN AGRICULTURAL PRODUCTIVITY
  3. 3. THE BASIC CONCEPT: Increasing agricultural productivity and incomes of small farmers from agricultural and agribusiness activities in India by transforming and enhancing the performance of the agricultural technology systems, empowering stakeholders and stimulating the development of agribusiness in different states through the establishment of an Agricultural Sector Coordination Unit (ASCU). • Support the development of effective government policies, its implementation, activities that will facilitate coordination of both Government and programs of NGOs. Policy & Institutional Support • Support the Indian Agricultural Research Institute to operationalize the India Vision 2020 policy towards increased productivity and value addition through empowering small farmers, sustainability and natural resource management and organization of the agricultural sector. Assisting Agricultural Research • Support the Government to implement the National Agricultural Policy, , focusing on empowering the stakeholders through sharing of information and knowledge to help them transform subsistence farming into commercial farming. Stakeholder Empowerment & Agricultural Growth • Empower public and private stakeholders along commodity chains to plan, design and deliver agribusiness services aimed at value-addition, and linking producers to input and output markets. Agribusiness and Market Development Elements of the proposed solution:
  4. 4. Objectives to be covered under “Policy & Institutional Support” • Supporting the development and implementation of the National Agricultural Policy • Supporting activities that will facilitate the harmonization of both the Government and NGOs. • Conducting a sector-wide consultative process to identify opportunities for increasing agricultural productivity and investments. • Supporting the development and implementation of priority sector policies such as for livestock, aquaculture, co-operatives and agribusiness. • Developing and piloting a roles and resources analytical model in the targeted value chains to ensure women and men equitably benefit from trade and market-based approaches. • Developing a Project specific and a harmonized sector-wide monitoring and evaluation system in the agricultural sector. • Developing and implementing an Agricultural sector information and communication strategy.
  5. 5. Objectives to be covered under “Assisting Agricultural Research” • Implementing the various activities outlined in the National Agricultural Policy to promote development and coordination of agricultural research in the country. • Supporting competitive collaborative agricultural Research Grants. • Building the institutional and research capacity of Indian Agricultural Research Institute (IARI) and other major research institutes through implementation of various activities such as conducting research programs, implementing initiatives for promoting sustainable research funding, purchasing of laboratory equipment and investing on infrastructure. • Provision of Operating Costs, and setting up of ICT infrastructure. • Formulating a task force to approach the farmers who use new technology and assist in the transfer of the technology to other farmers.
  6. 6. Objectives to be covered under “Stakeholder Empowerment & Agricultural Growth” • Supporting the implementation of the various initiatives outlined in the National Agricultural Policy including the capacity building of farmers. • Providing Farmers’ Grants to farmer groups and organizations to implement agricultural productivity, marketing and agribusiness which transform subsistence farming to commercial farming. • Strengthening the capacity of the farmers, farmers’ associations and other stakeholders of agriculture through training, and dissemination of information on agriculture and agribusinesses- connect with existing organisations such as ‘ekutir’. • Supporting the establishment of national and district information resource centres and information desks at the local level through provision of ICT and training.
  7. 7. Objectives to be covered under “Agribusiness and Market Development” • Supporting public and private stakeholders along commodity chains to plan, design and deliver agribusiness services aimed at value-addition, and linking producers to markets. • Developing and delivering curricula in agribusiness development and appropriate processing technologies. • Designing an Agribusiness partial risk guarantee financing instrument to provide commercial banks and other financial institutions an incentive for lending to agribusiness. • Conducting a study and developing weather-based risk insurance products to insure farmers against weather related risks. • Form a network of initiatives under the umbrella of Agricultural Sector Cooperation Unit including ICAR, state agricultural universities, national bureaus, NGOs etc.
  8. 8. Sector-wide coordination arrangemen ts Partnership Agreements Project Area Project coordination Project Implementat ion Implementation Model The Agricultural Sector Coordination Unit (ASCU) will become responsible for coordinating all programs and projects in the agricultural sector, rather than having stand-alone steering committees for each project. The ASCU members will be appointed by the government and they will meet quarterly, and are responsible for approving annual work plans and budgets and overall project oversight. ASCU will build a framework to define and organize partnership arrangements with the government and NGOs. The project will be implemented by three agencies: • The government of India • Ministry of Agriculture • Agricultural Sector Coordination Unit (ASCU) The ASCU could implement the model in 5 phases: Phase 1: Covering 6 states Phase 2: Covering 6 states Phase 3: Covering 6 states Phase 4: Covering 5 states Phase 5: Covering 5 states The government should establish an independent Agricultural Sector Coordination Unit (ASCU) to coordinate sector-wide initiatives, policies, programs, and projects. Overall coordination and fiduciary responsibility for the Project will rest with Ministry of Agriculture, whose capacity will be strengthened to undertake these responsibilities efficiently and effectively.
  9. 9. FINANCIAL REQUIREMENTS Although the initial implementation expenditure of the concept is high, the expenses will be counterweighed by the increased productivity of the farmers. The project could get financial assistance from the world bank. •Regulatory head office – 50 lakhs per annum •Regional branches– 20 lakhs per annum per branch Administrative expenses •Establishment of units – 4-5 crores •Other logistics expenses – 50 lakhs per annumLogistics costs •Communication costs – establishment of a communication network – 2 crores •Training of stakeholders – 2 crore per annum Operational expenditure
  10. 10. Sustainability of the solution •Sustainability of the concept will depend on a large extent on how values add to the communities and other stakeholders, as to give them an incentive to maintain and further develop the investments. Measuring the impact •The ASCU shall monitor and evaluate the progress of the Projects it implements and prepare Project Reports. The reports should include: • Percent increase in annual average yields of selected agricultural products in small- holder farming systems in the Project area. •Percent increase in earnings of small-holder agricultural activities in the Project area. •Percent increase in public investment in the agricultural sector. •Proportion of small-holder farmers who are satisfied with extension, empowerment and agribusiness services. Merits compared to the existing system •Focusing on agribusiness helps boost the overall production levels. •This model will transform agriculture into a thriving sector that can help generate enough income to lift millions out of poverty. •30% of the total work force working as agricultural laborers and 53% of the population relying on income from the agricultural sector will be directly benefited from the schemes. •The concept will create more “independent” farmers who could rely on their own income for increasing production and taking their products to the consumers.
  11. 11. Challenges and mitigation factors  The transformation of smallholder agriculture to a more science based production system requires committed governance as well as a system of public sector organizations with the capacity to support and transform small-scale agriculture in terms of productivity and participation in the national economy.  The traditional competition between large-scale commercial agriculture on one hand, and smallholder agriculture on the other, continues to cloud food and agriculture policy and opportunities.  The level of employment in the agricultural sector is declining.  The smallholder agricultural farmers and large scale farmers should collaborate to provide support to each other in both economic and technical matters. The ASCU will assist in achieving this cooperation between them.  The model will support smallholder farmers in engaging in commercial farming and thus provide an incentive for more workers to join the agricultural industry.  Provide subsidies to smallholder farmers to enable them to compete with the larger commercial farmers and provide a platform for them to develop and increase their production levels. CHALLENGES AND RISKS MITIGATION FACTORS
  12. 12. References  farmers-every-day/article4674190.ece  Annual Plan 2013-14 – Department of Agriculture & Cooperation  Marketing infrastructure & agricultural marketing reforms, Expert committee report – Department of Agriculture & Cooperation  National Policy for Farmers 2007  National Agricultural Policy 2000  The half-yearly economic report-2013     Times of India – Budget plan 2013-14