Andhra Pradesh Priorities: Agriculture - Mittal

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Cost-benefit analysis of agricultural interventions
in Andhra Pradesh
Surabhi Mittal
Agricultural Economist
India, Vijayaw...

Background
•The 12th five-year plan aims to promote agriculture at the
rate of 6% in Andhra Pradesh.
• 62 % of the populat...

Government of Andhra Pradesh Strategy
• Transform the agricultural and allied sectors with specific emphasis on
increasing...

Interventions analyzed
Adoption
of
certified
seed
Custom
hiring
services
Improving
Extension
system
with ICT

1st Intervention
Improving the availability of certified seeds

The Problem
• The seed replacement rates and varietal replacement are low for most
of the crops
• This hinders introducing...

CostsTotal cost- Rs. 400 crores
(higher SRR over a period of 3 years)
Cost of production of the
additional seed required t...

Benefits
Increased yields
because of the
use of certified
seed.
Higher yields
lead to increased
production (10%
is assumed...

Benefit Cost ratios
Intervention Discount Rate
Benefit
(in crore Rs)
Cost
(in crore Rs) BCR
Certified Seed
Production
3% 6...

2nd Intervention
Custom hiring services

The Problem
• Challenge for availability of machines for small and fragmented land
holdings
• Poor affordability of over 8...

Costs
• Well stocked CHC can serve approximately 500 acres of land
every year and thus in Andhra Pradesh 28,679 CHCs will ...

Benefits
• Reduced cost- seed and fertilizer by 15%; animal labor by 60%;
and human labor by 20%.
Reduced the cost of
prod...

Benefit Cost ratios
Intervention Discount Rate
Benefit (in
crore Rs)
Cost (in crore
Rs) BCR
Custom hiring
centers
3%
23,89...

3rd Intervention
Improving the extension services in the state
through the use of modern ICT tools

The Problem
• Public sector extension services are usually criticized for their
ineffective targeting, poor reach and the ...

Costs
• The costs is a sum of three components (for mobile users)
• Cost of delivering agricultural advisories through SMS...

Benefit Cost ratios
Intervention
Discount
Rate
Benefit
(in crore Rs)
Cost
(in crore Rs) BCR
Improving/
Expanding
extension...

Andhra Pradesh Priorities: Agriculture - Mittal

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