1. 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

2. 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

3. 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

4. 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

5. Recent trends include:
 Specialized & localized production
 Market - led Production
 Diversification
 Use of improved inputs
 Uniform quality
 Contract and Organic farming
Trends in Agricultural Marketing

6. 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

7. 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

8. 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.

9. 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

10. 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

11. 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

12. Solution?
Moving towards Action on
Public-Private Partnerships
in Agricultural Marketing

13. Key factors for partnerships
 Each partner must bring something to the
table
 Common objective
 Value creation for both
 Complimentary roles

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Benefits of P-P-P to Private Sector
 More competitive locally
 Expand market for private sector
 Allows exports in foreign markets

21. 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

22. 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

23. 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.

24. 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

25. 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

26. 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

27. 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.

28. THANKS