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  1. 1. MANTHAN TOPIC- BOOSTING AGRICULTURAL PRODUCTIVITY Responsible companies in the age of globalization Initiating CSR in agricultural field. Team Details: Devam Ghose Soumya Rout Soumya Sahoo Subhrashis Das Rahul Rao IIIT-Bhubaneswar
  2. 2. Agricultural Scenario in India • The sharp rise in food grain production during India’s Green Revolution of the 1970s enabled the country to achieve self-sufficiency in food grain and stave off the threat of famine. Agricultural intensification in the 1970s to 1980s saw an increased demand for rural labor that raised rural wages and, together with declining food prices, reduced rural poverty. • Sustained, although much slower, agricultural growth in the 1990s reduced rural poverty to 26.3 percent by 1999/00. Since then, however, the slowdown in agricultural growth has become a major cause for concern. • The Government of India places high priority on reducing poverty by raising agricultural productivity • Government failure is a major concern in agriculture because the high risks involved make help and facilitation necessary. Like any other business enterprise, agriculture is subjected to high risks because of the volatile nature of the factors involved. • Thus government/corporate facilitation is essential for sound agricultural development.
  3. 3. CSR (Corporate Social Responsibility) Towards Agriculture  Over the last years an increasing number of companies worldwide started promoting their Corporate Social Responsibility strategies because the customers, the public and the investors expect them to act sustainable as well as responsible. In most cases CSR is a result of a variety of social, environmental and economic pressures.  CSR frequent in empowering civic amenities, etc of rural population but none in direct pure agricultural practices and our existing CSR agriculture initiatives’ outreach is very low.  This engagement of the Indian economy(CSR) concentrates mainly on a few old family owned companies, and corporate giants such as the Tata and Birla group companies which have led the way in making corporate social responsibility an intrinsic part of their business plans.  CSR efforts by corporates are only confined to their surrounding communities of business, empowering civic amenities of its employees, of rural population, etc but hardly in direct agricultural methods.
  4. 4. A Central body/council mandating CSR in agricultural operations CSR COUNCIL AGRICULTURE GOVERNMENT • Introducing fully functional CSR initiatives in agriculture fields • There has to be adequate backing by the government. • Central body instituted by the government implementing the CSR initiatives in agriculture by corporations diligently. CSR Council Structure CSRProgramme Trained Company Officials Skilled NGOs/SHGs Government support Some important objectives - • Improving agriculture training/education of farmers. • Improving productivity by promoting scientific research and adopting sustainable practices • Checking internal corruption within the whole setup. • Equity of manual labour distribution. • Modernization of agriculture.
  5. 5. PROPOSED AGRI-CSR COUNCIL OVERVIEW Council structure • Board consisting of senior social activists, corporate experts, representatives from agricultural department, bureaucrats. • Council roping in prominent NGOs, SHGs in consultation with concerned corporate houses. • Council must be having proper and righteous rapport with major part taking corporations. • Active promotions and encouragement in agricultural CSR initiatives by council. • Consisting of a team of lobbyists between corporate houses and government body. Corporate Houses taking part.. • Main motto should be everything regarding agriculture based CSR. • Agriculture based CSR activities to come under the guidance of Agri CSR Council . • Chief source of funding is supposed to come from the corporate houses. • Should work in tandem with other NGOs . • Have the benefit of taking credit of the overall agriculture based CSR activities. • Hence better public image. • Have the responsibility of connecting with the grassroot levels of agriculture production and streamlining their activities. Salient Features • Gives a fillip to the overall implementation of agricultural benefits. • Somewhat it is outsourcing of agricultural activities by the government. • Eliminates the involvement of middlemen and brokers traditionally formed in a government-run system.
  6. 6. IMPLEMENTATION- • Corporate houses are to be the main executioners of the agricultural activities. • As a part of CSR, corporations must help in channelizing labor demand supply with respect to NREGA. • Synchronizing NREGA dedicated to agricultural work , thus giving labour supply to small, mid level farms. • Corporate tie ups with agriculture research firms so as to concentrate on a more macroscopic domain. • To eradicate corruption in subsidy schemes from govt. corporates along with NGOs/SHGs with wide outreach must be linking the subsidies and the beneficiaries. • Corporates must intervene in petty land disputes , encroachments. • Agri CSR council must rally for setting up for with highly specialized fast track courts for land disputes branching through all levels of a block and linked to the revenue courts of various level. Corporate houses Agri CSR council(Govt.) Enhancing other conducive factors Improving Agriculture Output
  7. 7. IMPLEMENTATION… • Council to ensure adequate CSR activities are taking place. • Corporate CSR organizations must adhere to their sanctioned agri initiative. • This has to be done like any other social service taken up by corporations. • Stipulated amount of activities is to be done for a particular corporation. • Trained company officials along with the corporate recruited NGOs are to help the beneficiary. • Act as a link between NREGA and local farm employers so as to maintain labour shortage • Implementation to be followed under both company and government norms. • The CSR central body is to be either passed by a bill or to be instituted by the government as a society. • Corporates in return would be immensely benefited by the government through various perks, etc. • Primary aim should be to boost the agricultural production. • Agricultural research institutes is to closely work with the CSR activities.
  8. 8. Primarily the council should.. • create a self-sustaining model of livelihoods. • Infuse technology heavily as far as agriculture is concerned. • Be involved in implementing Good NGOs for linking govt subsidies with farmers and farm holders thus sidetracking the chain of middlemen and brokers in subsidy grants . • Since Mostly farming is affected by petty land disputes,land encroachments among both small and mid level farms. This has to be dealt with highly specialized fast track courts branching through all levels of a block and linked to the revenue courts of various level rather than referring to costly legal procedures. • NGOs/SHG to be directed to set up free legal aid clinics for land disputes areawise. • Also to encourage to stop petty thefts in agriculture • CSR to replace most of the govt workers involvements in executing policies.
  9. 9. CHALLENGES • Govt/Corporate’s initial skepticism . • Difficult on part of Govt to go implement corporates into this initiative. • Lack of lucrative funding may lead to back outs. • Model needs an extensive and articulate planning. • In spite of having such life size successful examples, CSR in India is in a very nascent stage.In the informal sector of the Indian economy, which contributes to almost the half of the GNP and where approximately 93% of the Indian workforce is employed, the application of CSR is rare. On the contrary, the fight against poverty, the development of education, as well as the conservation of the environment are not existent in most of the Indian enterprises • Lack of international CSR guidelines .Critics believe that CSR programs are undertaken especially by multinational companies to distract the public from ethical questions posed by their core operations. • Most corporations will see this as a philanthropic activity, but it should be a kind of national duty towards agriculture benefits. BENEFITS • Improved Financial Performance- An recent study has found that “Stake holder balanced companies showed four times the growth rate and eight times employment growth ,when compared to companies that focused only on shareholders and profit maximization. • Enhanced Brand Image and Reputation- A company considered socially responsible can benefit both by its enhanced Reputation with the Public as well its reputation within the business. • Increased sales and customer loyalty- A number of studies have suggested a large and growing market for the products and services of companies to be socially responsible • Reduced Regulatory oversight- Companies that demonstrate that they are engaging in practices that satisfy and go beyond regulatory compliance requirements are given less scrutiny and more free reign by both National and Local Government Entities.
  10. 10. APPENDIX • Gross Capital Formation in Agriculture 2011 , Bharti & Vijay, NABARD. • Agricultural Census, Government of India. (2012). All India Report on Agricultural Census 2005-06 • Corporate Social Responsibility (CSR) – the societal responsibility of companies, • Indian Agriculture, Tejas,IIM-B • World Bank2002 “Social Capital and Community’’