Agri Marketing - Bihar 06-06-07
Upcoming SlideShare
Loading in...5

Agri Marketing - Bihar 06-06-07






Total Views
Views on SlideShare
Embed Views



0 Embeds 0

No embeds



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

Agri Marketing - Bihar 06-06-07 Agri Marketing - Bihar 06-06-07 Presentation Transcript

  • Agriculture Marketing Reforms in Bihar, India: A Paradigm Shift Needed Dr.K.M.Singh, Director, Bihar Agricultural Management & Extension Training Institute, Patna 6th June 2007 Presentation in Meeting of the Steering Group on Agriculture, State Planning Board, Soochana Bhawan, Patna, Bihar, India
  • Changing Scenario: Agriculture vis-à-vis Market Effects of globalization and liberalization changing the face of the market Changing consumer interest & preferences Diversification of food basket Increased demand for good quality, value added and processed food products Competitive market conditions Raising and stabilizing consumer incomes Food security improving Improving sustainable farming systems
  • Need for a new Approach to Marketing Shift from staples to high value crops From narrow agricultural focus to broader policy context – including global impacts From focus on crop yields to market demands and incomes From primary production to entire food chain From agriculture to overall rural space From purely public to public-private partnerships, including community driven development
  • Domestic International Market Consumer Distributor/Retailer Exporters Imports Aggregators Mandis Farmers Processors Brand Marketers  Inadequate information with farmers to plan production– Little or no linkages  with the market  Research system with limited connect with the market  Public actions focused on crisis resolution, not at systemic solution  Private sector focus on articulating problem only a few initiatives to show for. Consumer Ploughing ahead …..times have changed
  • Recent trends include:  Specialized & localized production  Market - led Production  Diversification  Use of improved inputs  Uniform quality  Contract and Organic farming Trends in Agricultural Marketing
  • Marketing of Agricultural Products Driven by market forces / consumers/ retail Globalized through international trade Influenced by new technologies Subject to stricter regulatory scrutiny Subject to greater ethical scrutiny But peoples’ ability to respond to this changing context differs greatly between regions, nations and communities
  • New Initiatives in Bihar Agriculture Repeal of APMC Act provides opportunities for: Establishment of Market Yards in private sector. Establishment of specialty market. Contract farming Value addition and Processing
  • New Initiatives in Bihar Agriculture Other initiatives include:  National Horticulture Mission for Fruits, Vegetables, Spices, Flowers & Medicinal & Aromatic plants  Macro Management for cereals  ISOPOM for pulses, oilseeds & Maize  Establishment of ATMA in all the districts to bring all stakeholders on one platform and to promote PPP.
  • Rice, Wheat and Maize Sugarcane Fruits and vegetables Makhana Litchi Honey Dairy products Select spices Aromatic oils and Herbs Bihar’s Strength in Agricultural Sector
  • Some success stories and opportunities to build in Bihar’s agriculture include: Makhana processing Organic rice Litchi Exotic vegetables like snow peas Litchi Honey Tea in Eastern Bihar Aromatic oils- mentha & lemon grass
  • Constraints and challenges  Low productivity, due to low level of technology;  Poor infrastructure in the rural areas;  Unstable production and generally with low quality standards for export.  Problems in the post-harvesting handling, storage, packaging and high transaction costs.  Lack of market information systems in the rural areas.  Lack of previous experience in dealing with developed markets and export procedures.  Limited access to credit for farmers due to high interest rates at commercial banks; and  No attractive business for commercial banks due to high risk in agriculture
  • Solution? Moving towards Action on Public-Private Partnerships in Agricultural Marketing
  • Key factors for partnerships  Each partner must bring something to the table  Common objective  Value creation for both  Complimentary roles
  • The way forward ……..  Stop depending too much on the government…  Stop thinking the private sector as greedy and unreasonable  Combine the efforts of the public, private sectors and community (civil society) together to get the best benefits
  • Opportunities for Partnership Exist Partnerships can improve access to: New technologies, and tools New research expertise and infrastructure Private equity markets; donor funding New product markets and new customers New marketing and distribution networks Synergies through knowledge sharing, Joint learning, Economies of Scale, Resource pooling, and Cost sharing
  • But there is a confusion on roles! With changes in the global agri-food system, the roles of the state, industry, and society remain contested: Controversy over ownership of new knowledge Issues over distribution of benefits and risks Concerns over lack of pro-poor emphasis Unease over environmental, social sustainability Learning from other sectors e.g. the health and ICT sectors
  • Practical Options  Working together on “how to”  Delivery mechanisms and marketing  Management tools of research and innovation  Technology collaboration and related issues  Collaboration which could impact rights on knowledge in public domain
  • Government’s role: Policy environment Change in mindset From Regulator to Facilitator Engage in Partnerships for Skills development & complementation Legal Framework Move to a single window dispensation in spirit & practice New legislations be made facilitative rather than regulatory Effective IP protection and enforcement across the board Multiplicity between centre and states in regulation is discouraging
  • Partnerships are taking place Industry wants to focus on national goal of increasing food production in a sustainable manner. Enhanced private R & D investment is feasible under correct policy environment An enabling environment is a must Several examples of partnership already exist and can be built upon Industry’s Perspective
  • Benefits of P-P-P to Private Sector  More competitive locally  Expand market for private sector  Allows exports in foreign markets
  • Benefits form public private consortia Public sector stronger More money Research more relevant for industry and farmers Private knowledge of market Private germplasm and technology Private sector benefits from Technology Access to knowledge
  • Concept of Corporate involvement The Corporates should ensure forward and backward linkages with the farmers to co-ordinate and promote production and marketing of agriculture produce Farmer Corporate Produce quantity and quality as per requirements of Corporate Provide support in terms of extension services, agri-inputs, credits, farm practices, markets and fixed price
  • Concept of Corporate involvement…… The corporate extension agencies should ensure supply of quality seeds, extension services, better yields, market access and buy back price support.
  • Typically contract farming will need corporate involvement to address... Identificación of high yielding alternatives which give better returns than paddy- wheat rotation Marketing security and technical assistance in a multi-crop programme Removal of infrastructural bottle-necks and enabling regulatory framework Warehouses / Cold storage chain Dryers Transportation
  • Important Aspects Most Critical Missing Links Potential Consortium Partners Consumption (Safety & Quality) Marketing Processing Production 1. Identification and estimation of pesticide residues 2. Packaging of the products 1. Demand & supply (domestic & global) analysis 2. Market intelligence 1. Proper grading & Standardization 2. Lack of Uniform production Technology by growers 1. Research on plant protection 2. Research on GAP Central & State Institutes Policy Research bodies like NCAP, NCAER Private Sector, Research Institutes SAU, Private Partners Farmers Processors Traders/Exporters Consumers Government EXAMPLE: VALUE CHAIN ON AGRICULTURAL PRODUCTS KVKs, E-Chaupal, ATMAs, FOs, PRIs, KVKs, SHGs
  • Opportunities for Private Sector Investments Crop Processing Cool Chain Export Contract Farming Ethanol/ Corn Oil /Starch Industry Modern Rice Mill Litchi Honey Makhana Banana Mango Maize Vegetable Aromatic Rice Fish
  • Final Words There’s high potential for Partnerships here in Bihar due to: Political stability Favorable conditions to produce a variety range of products, Access to preferential markets Constraints are being appropriately addressed. Public-Private Partnerships crucial for success.  Agriculture development, agro-industrialization, creation of a proper business environment to investment are priorities to the Governmental program.