Privatization of extension services is the need of the hour

1. Privatization of
Extension
Rajinder Kaur Kalra
Professor and Head (Retired)
PAU Ludhiana
9814067709

2. 2
Current status-Public Sector
 Co-ordination continues to be a big problem
 Diminishing operational support(>85% salaries), most states
are unable to effectively carry out extension activities
Poor technical background of the extension personnel.
Implementation of schemes (>60% time).
Isolated functioning
 Obsession with technology dissemination
 Groups dysfunctional and inactive
 Lack of flexibility at district level
 Lack of extension manpower in remote and distant areas

3.  Exclusion of disadvantaged areas and small farmers.
 Dependence on other farmers & input dealers high. An input
dealer is all in one i.e. money lender, scientist, counselor and
buyer (NCF)
 “Public extension alone can’t meet the specific need of
various regions and different classes of farmers.
 There is a need of a policy to promote private and community
driven extension to complement, supplement, work in
partnership and even substitute for public extension.

4. Favorable Factors for Privatization of Agricultural Extension in India
1. Technological advancement in the areas of Communication & Information
Technology.
2. Opening out of public research and educational institutes to part with the
technologies.
3. Changing-cropping trend and emergence of contract farming.
4. Need to earn more from smaller holdings
5. Loss of credibility in the existing extension system
6. Inability of the public extension system to reach the large target client
system

5. Stake holders in Private Extension / Privatization
In the process of privatization, public extension is always a part. In Private
Extension, players are
1. Agricultural Consultants.
2. Agricultural Consultancy Firms.
3. Progressive Farmers.
4. Farmer’s organization / co-operatives.
5. Non-governmental Organizations (NGO’s).
6. Krishi Vigyan Kendra’s (KVK’s).
7. Agri-business Companies.
8. Input Dealers.

6. 9. Newspapers.
10. Agricultural Magazines.
11. Private Television Channels
12. Private Sector Banks.
13. Internet.
14. Donor Agencies.

7. Approaches to Privatization
There are different ways in which farmers can contribute to the costs of
a privatized extension service
1. They can pay a fee for each visit an extension agent makes to their
farm or for each other service the extension agent provides
2. A levy can be charged on certain agricultural products from which,
agricultural research and extension are financed.
3. Costs can be met from membership fees paid to farmers’ association.
4. The extension service can receive a specific portion of the extra income a
farmer earns as a result or advice given by the extension agent

8. Strategies for privatizing extension
Commercialization of extension services
Introducing “Contract Extension System”
Giving partnership rights and more responsibility to private
sector and NGOs.
Gradual withdrawal of public extension system
Creating and strengthening farmers groups and co-
operatives

9. Advantages
• Farmers can get what, when and where he needs
advice
• There will be accountability for the provided
services
• Due to better discipline and market competition,
services will be timely and of high quality
• Input provided by the consultancy services will be
of better quality
• Farmers can get higher income returns

10. Disadvantages
• Small and marginal farmers can not take
advantages of such services
• There are chances of exploitation of the farmers
and increase in the cost of production
• Use of unapproved inputs may create field
problems and loss of crops
• Contradictory message can flow from different
organizations
• Private organizations may sideline educational
role and concentrate more on business