The document proposes establishing an Agricultural Corporation of India (ACI) to address issues in Indian agriculture like small land holdings and lack of policies ensuring food production and sustaining rural livelihoods. The ACI would procure land, provide resources and scientific assistance to farmers working as employees. It would ensure minimum support prices for farmers and sustainable, increased productivity. The corporation would be financially self-sufficient through profits from higher production and market sales, benefiting both farmers through stable incomes and the government through increased output and GDP contribution. A pilot implementation would assess the plan's viability before broader adoption.

2. AGRICULTUREDOES NOT LACK RESOURCES. IT LACKS POLICIES TO
ENSURE THAT FOOD IS PRODUCED WHERE IT IS NEEDED AND IN A
MANNER THAT SUSTAINS THE LIVELIHOOD OF THE RURAL POOR.
 80% of all farmers are small or
marginal& work on only 40% of
availablecultivable land.
 The average size of agricultural land
holdings has decreased from 2.3
hectares in 1971 to 1.2 hectares in
2011.
 Agriculture employed 70% of the total
workforce but contributed only 13% of
the GDP.
 Scientific & commercial farming are not
very successful due to small land
holdings.
Problem statements:

3. FUELLING SELF SUFFICIENCY OF AGRICULTURAL SECTOR OF INDIA
THROUGH AGRICULTURALREFORMSIN FORM OF AGRICULTURAL
CORPORATIONOFINDIA.
• A corporationunder Ministry of Agriculture thatwill look after
every aspects of agriculture keeping farmer’s interestand
agriculturaldemands in mind.
Agricultural
Corporation of
India
(ACI)
• Largefarms will be developed by land procurement & cultivated
accordingto plans developed by ACI.
• All investments & resources to be provided by ACI.
• Farmerswill be given their shares according to land.
Working of ACI
• Raised agriculturalproductivity per unit land.
• Improvementin Farmer’s condition.
• Sustainableproductionusing scientific methods.
Benefits
Summary of proposed solution:

4. A CORPORATIONFOR MUTUAL BENEFITS OF BOTH FARMERSAND
GOVERNMENT
Farmers Government
Working in fields as an
employee seriously.
Following the guidelines of
ACI.
Invest money and provide
resources.
Ensure considerable MSP.
Provide best scientific
assistance to farmers.
No risk of crop damage.
Salaried employment.
Familymembers can work in
other sectors.
Raised and sustainable
agricultural productivity.
Expandinginternational
trading.
Price control in market.
A farmer can not sell crops
accordingto his will and
needs.
A farmer can not sell the
crops on his own price.
A group of farmers can refuse
to work accordingly.
High capital is involved.
Crop damage will lead to a
bigloss.

5. MANAGEMENTAND CORPORATIONSTRUCTURE
Ministry of Agriculture
Agricultural corporation of India
Advisory &
Administrative
team
Human
resource
team
Technical
team
Financial
team
Marketing
team
Administration
Asset
management team
Coordination team Technical team
Transportation&
storage team
Central management team:
Regionalorganisation:

6. FUNCTION OF CORPORATION
•Ensuringthe work completion ofindividuals.
•Land procurement.
•Ensuringoverall plan implementation.
Advisory &
Administrativeteam
•Recruitment ofemployees & planningtheir work.
•Managingthe corporation.
•Planningthe action schedule.
Human resource
team
•Research & development activities.
•Providingproper seeds,fertilisers & machines to farmers.
• Ensuringproper & scientificcultivation ofland.
Technical team
•Maintainingproper investment in each sector.
•Maintainingincome statement,cash flowand balance sheet.
•Maintainingcapitaluses & loan summary.
Financial team
•Market research & analysis.
•Makingpricingand distribution strategy.
•Realisingopportunities.
Marketing team

7. IMPLEMENTATIONOF PLAN
Land procurement Land analysis
Development of
large farms
Development of
agricultural plan
Providing
resources
Ensuring proper and
scientific cultivation
Ensuring safety of
crops using
pesticides
Harvesting of crops
with minimal post
harvesting loss
Marketing of products &
giving farmers their shares
according to land and
production

8. INVESTMENT & PROFIT ANALYSIS:
Plan implementation on 2 lac hectares of
cultivable land: (crop example is wheat)
Productionbefore implementation=560000 tonnes (2.8 tonnes/hectare)
(average in India)
 Production after implementation=800000 tonnes (4 tonnes/ hectare)
(assumed)
Share of farmers= ₹ 756 Cr. (560000 tonnes* ₹ 13500/tonne)
(Share accordingto previousproduction as farmers are not investing money)
Totalinvestmentincludingexpenses on corporation= ₹ 250 Cr. (assumed)
Earningfrom sell to PDS= ₹ 68.32 Cr. (112000tonnes* ₹6100/tonne)
(only 20% of previousproductionis required for PDS & sell will be at rate fixed
government i.e. ₹ 6100/tonne for wheat)
Earningfrom sell to market= ₹ 997.6 Cr. (688000tonnes* ₹ 14500/tonne)
(average market price)
Totalprofit ≈ ₹ 60 Cr.

9. SWOTanalysis of plan:
OPPORTUNITIES
:
THREATS:
WEAKNESSES:STRENGTHS:

10. RISKSAND MITIGATION
• Plan implementation on a small scale for checking
its sustainability.
• Government will invest money, seeing mutual
benefits of both farmer & government.
High capital
involved
• Provision of Bail out packages in case of crop
failure.Crop failure
• A conflict management team to deal with farmers,
their small problems and demands.
Conflicts
between farmers
• Maintaining cordial relationship with farmers.
• Incentives in case of very good production & fixed
salary even in case of crop failure.
Reluctance of big
farmers

11. FAR REACHINGIMPACTS OF ACI
Impacts:
 Food security, agriculture prosperity and increase in GDP share.
 Improvement in farmer’s living condition.
 Improvement in economic conditionof nation.
 Freedom from middlemanand thus products reaching consumers at lower prices.
Reach:
 Starting from a district/state,the plan will be implemented in most of the parts
of country.
 The plan affects a wide range people from poor farmers in remote villages to
sophisticatedconsumers in metropolitans.
 It will help India to bag the developed Indiatag sooner.

12. References:
 Gulati, A. & Jain, S. (2012, December 20). Credit inclusion,farm lease and forming
clusters can help small farmers overcome poverty much faster. The Economic
Times. Retrieved from
http://articles.economictimes.indiatimes.com/2012-12-20/news/35933641_1_small-
farms-farm-output-farm- lease
 Agriculture in India
http://en.wikipedia.org/wiki/Agriculture_in_India
 The Nature of Co-operation.Craig, J. G. Black Rose Books, Montreal.1993. (Book)
 Sharma, V.P. (2012). AcceleratingAgriculture Growth for Inclusive Development.
Vikalpa,37(1). Retrieved from
http://www.iimahd.ernet.in/assets/upload/faculty/161638648Vikalapa%20Paper%20
2011.pdf
 Planning Commission, Government of India. (2008). EleventhFive Year Plan
(2007-2012). Retrieved from
http://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v1/11th_vol1.pdf