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Path to Ever Green Revolution

In the last few decades, India has experienced rapid economic and Agricultural growth, supported by solid increases in crop yields, due to increased cropping intensity and greater area devoted to food crops. India is the top producer of milk, pulses and jute in the world. It ranks second in the production of rice, wheat, sugarcane, groundnut, vegetables, fruit and cotton. India also is a leading producer of spices, fish, poultry, livestock and plantation crops. However, India’s sustained economic development has no significant impact on world markets.
India’s policy effort to support farmers, promote rural development, and at the same time address food insecurity has been, and is now, very significant. A range of supply side programmes such as input subsidies for fertilisers, irrigation, electricity and farm credit, coupled with investments in irrigation, are designed to encourage higher yields and production. A range of market support prices are set to cover costs and improve farmer returns. High food subsidies are given to help poor consumers. In September 2013, India enacted a new National Food Security Act (NFSA), which is now implementing the most ambitious “right to food” programme yet to be applied in history, covering over 800 million people and providing 60 kg of food grain per person each year at prices that are about 10% of current retail prices for food grains.
However, despite its growth, the role of agriculture in India’s economy has been declining sharply as other sectors, particularly services, have grown more quickly. Primary agriculture accounted for about 14% of national gross domestic product (GDP) in 2012, down from close to 30% in 2000. But, while there has been a reduction in the share of agriculture in GDP, a commensurate reduction in its employment share has not taken place. Primary agriculture still employs around half of the Indian population, and it is the main driver of employment in rural areas, where 68% of the population live. Potential yield gaps remain, and concerns about the sustainability of growth in production are mounting. Rural labour costs are rising, water supplies are being depleted and smaller farm sizes due to fragmented land holdings potentially impede the capture of economies of scale. Natural calamities like drought and floods are adding to these woes, creating a severe agrarian crisis in the country with large number of farmers resorting to suicides.
Major concerns have centred on food insecurity in the presence of trade surpluses, and how to invigorate agriculture to promote growth and employment in populous rural communities, where unlike the experience of most countries, the size of average land holdings continues to decline. About one-quarter of the world’s food insecure people are within India, and improving its nutritional status remains a significant challenge.
However, despite the challenges, a big potential for positive Agriculture growth exists in the country with i

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Path to Ever Green Revolution

  1. 1. Path to Ever Green Revolution Dr. Prahlada N.B MBBS, MS, MBA, MHA Karnataka ENT Hospital & Research Center, Chitradurga, Karnataka, India Mob: 9342310854 Email: prahladnb@gmail.com
  2. 2. MOTIVATION Source: ICAR
  3. 3. My Observations based on • ICAR Vision document & success stories • 11th Planning commission recommendations • Best practices across the world • Publications by Agri Scientists • World Bank and FAO documents • Report by Swaminathan Committee on Farmers 2006
  4. 4. Aims & Objectives Part - 1 • Provide food security for all Indians • Prevent exploitation of farmers & Farmers suicides • Providing right prices for Producers & reduce cost for consumers • Sustain prices of commodities at affordable levels • Prevent black marketing and hoarding • Increase tax revenue from Agricultural trade
  5. 5. Aims & Objectives Part - 2 • Increase Quality & Traceability • Prevent wastage of agricultural products (food) • Increase Efficiency of Agriculture markets • Harness co-operation with World markets • Increase exports of agricultural products • Become WTO Compliant
  6. 6. Source: ICAR
  7. 7. SWOT analysis
  8. 8. Major concerns • Small land holding • Un-organized market • Illegal parallel market • Harvest & Post Harvest losses • Mono-cropping • Un-scientific farming
  9. 9. Annual Agri Cycle Natiional Demand estimation GPS Soil testing Collect Weather, Ground water Reservoirs information Estimate seed, fertilizer & pesticide requirement Requirement oriented seeding using Agri-match Provide investment, technology & Insurance Monitor Crop Health using Agri-Satellite Purchase using e-scales Prepare National Production database Spatially distributed warehouse / Cold storage Sales through National Agri exchange Distribution through GPS installed Vehicles. GOI/ICAR
  10. 10. Agri Zones Source: ICAR
  11. 11. Pre-requisites Dr. Prahlada N.B MBBS, MS, MBA, MHA Karnataka ENT Hospital & Research Center, Chitradurga, Karnataka, India Mob: 9342310854 Email: prahladnb@gmail.com
  12. 12. Pre-requisites - I • Coordinating agency - Larger role by ICAR ? • Kisan Card (Smart Cards) • Farm Co-operatives • New Farmers Micro credit policy • Independent Soil testing authority
  13. 13. Pre-requisites - II • National Agri Matching Programme (NAMP) • Mobile based extension services • E-Scales connected to central database • RFID Coded Tamper proof packing • Independent Crops grading/standards authority
  14. 14. Pre-requisites - III • Authorized dealers with dealer codes • National Agri Stock Exchange – E-Shopping platform • Fair prices for farmers: >50% of Average weighted cost • Government mediated Contractual farming • Spatially distributed warehouses with • Online Ware house management system (WMS)
  15. 15. Pre-requisites - IV • Single window uniform tax system at APMCs • Abolition of inter-state trade barriers • Geopgrpahic Position System (GPS) based logistics • National Farm Insurance Scheme • Re-organization of Public Distribution System (PDS)
  16. 16. Prerequisites in Detail Dr. Prahlada N.B MBBS, MS, MBA, MHA Karnataka ENT Hospital & Research Center, Chitradurga, Karnataka, India Mob: 9342310854 Email: prahladnb@gmail.com
  17. 17. 1. Larger role by ICAR • Co-ordinate events in Agri cycle • Provide input advise • Provide extension services • Advice on price fixation • Start new courses eg., ICT in Agriculture • New strain/methodology/technology
  18. 18. 2. Agri Smart cards (Kisan Cards) • Connected to Adhar Card • Registered along with a mobile number • Functions like: • Land ownership Card • Credit Card • Ration card • Insurance Bond • Health Card • Co-op Membership card
  19. 19. 2. Agri Smart cards (Kisan Cards) - Info • Has following info: • Land ownership revenue details • Annual soil testing report • Agri Match History • Sowing report • Harvest report • Fertilizer and Pesticide use report • Sales report • Credit report • Adverse event report – Drought/flood/disease • Subsidy/compensation/insurance details
  20. 20. 2. Agri Smart cards (Kisan Cards) & Mobile • All transactions – SMS alerts to the farmer
  21. 21. 2. Agri Smart cards (Kisan Card) - Advantages • Land Ownership / Encumbrance / Revenue details • Credit rating of the farmer. • Accountability of the farmer • Transparent financial transactions • Avoid black marketeering/Speculation • PDS/Extension services easy • Insurance/Compensation distribution easy
  22. 22. 3. New Credit policy • State should supply all inputs on credit basis • Provide 10% of expected production as low interest Cash credit • Recover the same at the end of harvest, during sales • All Transactions through Kisan Card • In case of adverse event the Credit is waived • Subsidies / Incentives may be paid during sales
  23. 23. 3. New Credit Policy: Advantages • Avoids intermediaries • Prevents farmers exploitation and suicides • Accountability • Increases Tex revenue from Agri business • Creates new jobs in Agri business • Support to Agri sector
  24. 24. 4. Farm Co-operative (FCO) • Facilitate capacity building • Distribution of Inputs • Implementation of extension programmes • Shared labor • Team work
  25. 25. 4. Farming Co-operative - Advantages • Shared technology/machines • Reduce transaction costs • Leverage collective strength • Increase Bargaining power • Tap high value markets
  26. 26. 4. Farm Co-op Vs MGNREGA • MGNREGA can be integrated with Agri sector • Estimation of Average labor / Co-operative • Registration of Labors – With or without farms • Kisan card / Mobile linked • Calculate average labor • Average Labour payment through Kisan card
  27. 27. 4. Farm Co-op Vs MGNREGA • Shared team work irrespective of ownership • Non farm work during off season • Biometric system for attendance • Videography of the work using drones • Cashless online payment
  28. 28. 5. Independent Soil testing authority • National network of Advanced Soil testing facilities • Facilities for detection of Micronutrient deficiencies • RFID/Bar Coded testing of Samples to avoid bias • Online Annual updating of the Soil testing Reports • Reports updated on Farmers Kisan Cards • District / State / National level Soil maps drawn
  29. 29. 5. Soil testing - GPS Based • GPS Field Mapping • GPS Soil Sampling • GPS Yield Mapping • GPS Yield Mapping and Analysis • Advanced Record keeping and Reporting • Nutrient Management Mapping Source: Agro Watch
  30. 30. 5. Soil Testing – Soil / Field / Yield mapping Source: Agro Watch
  31. 31. 6. National Agri Matching Programme (NAMP) • Matches the Farmer’s choice to Govt requirement • Through Computer algorithm • Involves • Registration, • Ranking & • Result Result Ranking Registration Source: NRMP, USA
  32. 32. 6. NAMP: Registration - EFCAS EFCASFarmer State Soil scientist Credit facility Buyer • Electronic Farmer’s Crop Application Service (EFCAS) Source: ERAS, USA
  33. 33. 6. NAMP: EFCAS Components • Step-by-step instructions for participating NAMP Process. • Register for a Match and update personal information. • Modify existing Government’s Crop information: Type or quota • Search for Farmers or Crops they wish to rank. • Import Crop rank order lists from Farmers • Access outcome reports at the conclusion of a Match EFCASFarmer State Soil scientist Credit facility Buyer Source: NRMP & ERAS USA
  34. 34. 6. NAMP: Step-by-step EFAS Process Previous harvest Sales certificate Credit report Soil test report Water resources Agri- match
  35. 35. 6. NAMP - Advantages • Farmers match history – • Helps avoid mono-cropping • Crop rotation can be done • Bad lands – Crop holiday • Match reports – helps planning: • Seeds, Fertilziers & Pesticides • Extension services • Marketing research for Agro / Food processing industries Source: NRMP, USA
  36. 36. 6. NAMP - Advantages • Farmers/State - Waiver/violation history • Disciplinary actions can be taken • Regional match statistics – Crop types • Helps estimation of Production and Types. • Did myCrops fill ? • Help assess shortages • Confidential report of Crops matched farmers • Estimation of un-used land • Non –farming real estate investors can be indentified Source: NRMP, USA
  37. 37. 7. Mobile based Extension services Source: Tata Consulting Services
  38. 38. 8. E-scales • All licensed dealers should have e-scales. • Remains locked until activated • Online Activation by swiping the Card of the dealer • Weighing starts once Kisan Card is swiped and farmer’s data is entered. • Type of produce, harvest date, strain are entered.
  39. 39. 8. E-Scales - Process Online activation after swiping Dealers and Farmer’s Cards Via Internet Automatically update on District/State/National Database Static or Mobile E-scales with Net-connectivity
  40. 40. 8. E-Scales - Process
  41. 41. 8. E-scales - Advantages • All purchases will be recorded • Day to day database of Sales & Purchases are updated • Government can keep track of the stock • Black marketers can be avoided • Control of Commodity prices • Increases Tax collection from Agri Trade
  42. 42. 9. RFID Coded Tamper Proof Package Polypropylene bags
  43. 43. 9. RFID Details • Farm details • Farmer details • Soil Grade • Crops type / Grade / Quality • Primary buyer • Warehouse • Every Transaction
  44. 44. 9. RFID - Advantages RFID Tracking system Standards & Safety Consumer confidence Price Premiums Access to Global market Costs & Risks of Product Recall Quality improvement Rise of Supermarkets Decreased Handling & Wastage Business efficiency & Cost Reduction WTO Compliance
  45. 45. 10. Independent Crops quality control authority • Third party – Crop Quality or Standards authority • RFID /Bar Coded technique to avoid bias • Uploaded to Central database/EFCAS automatically • SMS Alert to the farmer and Buyer • Crop Grade & Quality updated on the RFID tag • Final rates will be based on Quality testing or Grading
  46. 46. 11. Authorized dealers / APMC • E-scale, Computer, Internet & Packing facility • APMC dealers with warehouses to continue • Mobile dealers with all facilities • Register number to be quoted during all transactions • Only cashless, online transactions • Authorized to distribute Warehouse Cash Receipts
  47. 47. 11. Authorized dealers - Advantages • Private Lending & Extraction cycle will stop • Prevents black marketing and hoarding • Increase Tax revenue from Agriculture business • Facilitates data collection • Improves quality
  48. 48. 12.National Agri Exchange Programme (NAEP) • Connects all Registered dealers • Allows comparisons of prices across regions • Helps equalizing the prices • Commodities can be moved from: • Excess areas to shortage areas • Low demand to high demand areas Picture Source: E-Mandi, GOK.
  49. 49. 12. NAEP: Online e-Shopping Platform Source: e-bay
  50. 50. 12. NAEP: Rating of sellers Source: e-bay
  51. 51. 12. NAEP - Advantages • Equalizes prices at national level • Ensures Fare price to Farmers • Economical prices to consumers • Helps control Commodity prices in the country • Increase contribution to GDP • Increased contribution to capital formation
  52. 52. 13. Fair prices to farmers • National Farmer’s committee report • Headed by Prof. M.S Swaminathan • >50% of Average weighted prices
  53. 53. 13. Govt mediated Contractual farming • Food Processing Industry (FPI) Vs Farmers • FPI to provide Investment & Extension Service • FPS to provide: • Letter of Credit • Bank Guarantee • Deposit Purchase amount • Farmers to sell through Kisan Cards • Banks to pay – Complete/50%/Warehouse Cash receipt
  54. 54. 14. Warehouse management system • FCI to stock mainly Buffer stocks • Large private ware houses. • Small ware houses – APMC. • Domestic warehouse – Farm Co-ops, Farmers. • Rural Granary to be re-established. • Capacity building - Quality warehouse practices
  55. 55. 15. Spatially distributed warehousing • Computerized Warehouse management system • Warehouse connected to central database. • Just-in method of inventory system • Warehouse cash receipt system • RFID Coded transactions • Every grain to be traced
  56. 56. 15. Single window tax system at APMCs • At present multiple tax regimes & multi-point market fee • > 12% of the Total value of produce marketed • Commission 1% to 2.5% for Food grains & 4% to 8% for Fruit & Vegetables • Price discovery not transparent & Payment delay • Prices should be uniform across the country • Prices should be available online - 24 X 7
  57. 57. 16. Abolition of Inter-state TRADE barriers • Remove interstate TRADE barriers • Create Uniform National Market • Easy physical movement of goods from one state to other
  58. 58. 17. GPS Based logistics – Mechanism
  59. 59. 17. GPS Based logistics - Tracking
  60. 60. GPS Based logistics - Advantages
  61. 61. 18. National Farm Insurance Scheme • Automatic Insurance after registration at NAMP & EFCAS • Crop health to be monitored online • Compensation based on Crop health and Adversaries • Human intervention minimized • Automatic online Insurance payment – If adversary • Kisan Card based transactions
  62. 62. 19. Re-organization of PDS • Implement Decentralized PDS system • Grains according to local consumption patterns • Local re-distribution of Grains • Source of Protein to be included • e.g., Bengal Gram (Chickpea), Broccoli or Egg • Extend PDS to other house hold items • Distribution based on Kisan Credit Card
  63. 63. Orchestrating Annual Agri Cycle Dr. Prahlada N.B MBBS, MS, MBA, MHA Karnataka ENT Hospital & Research Center, Chitradurga, Karnataka, India Mob: 9342310854 Email: prahladnb@gmail.com
  64. 64. Annual Agri Cycle Natiional Demand estimation GPS Soil testing Collect Weather, Ground water Reservoirs information Estimate seed, fertilizer & pesticide requirement Requirement oriented seeding using Agri-match Provide investment, technology & Insurance Monitor Crop Health using Agri-Satellite Purchase using e-scales Prepare National Production database Spatially distributed warehouse / Cold storage Sales through National Agri exchange Distribution through GPS installed Vehicles. Autonomous institution
  65. 65. Step 1. National Demand estimation • If we fail to plan, actually we are planning to fail.
  66. 66. I. National Demand Estimation • Sources of information • State • PDS • National Buffer Stock (FCI) • Supermarkets • Retailers • Supermarkets • Food processing Industry • Exporters • Consumers • Importing nationals • Donation requirements
  67. 67. 1. National Demand Estimation-Advantages • Understand consumer changing patterns • Prepare for Risk management • Prevent surplus and wastage • Marketing research easy • Helps estimate input requirement
  68. 68. 1. National Demand Estimation - Advantages • Facilitates extension services • Targets provide Focus • Easily manageable targets • Responsibilities & Accountability • Marketing & Logistics planning easy
  69. 69. 2. Collecting Soil Testing data • Annual Soil testing at the end of the harvest season • Soil testing by third party • Coded Soil sample bags to avoid bias • Soil test report to be updated online • Draw Soil maps • Village / Panchayath / Thaluk / District / State Soil Maps
  70. 70. 3. Collect water source & Weather data • Various water bodies • Underground water levels • Rain & Weather information • Rain water harvesting info • Other water sources • Draw Taluk/District/State/Country wide water map
  71. 71. 3. Collect water source & Weather data Draw Hydro-geological Map of India
  72. 72. 3. Collect water source & Weather data Draw District-wise Irrigation Profiles
  73. 73. 3. Collect water source & Weather data Weather information
  74. 74. 4. Regional distribution of Demand India Region1 District1 Co-op1 Co-op2 Paddy Wheat ChickpeaJowar Vegetable District2 Region2 Region3
  75. 75. 4. State wise Distribution of Crops • Assimilation of Soil test report and water source data. • Farm Grading of the regions based on the Soil+water+weather data • Crops advisory based on the Farm grade. • State / Region / District wise distribution of the Crops demand • Notification through Gazette / DD / Radio • Initiate Agri Match Process
  76. 76. 5. Inputs estimation & Preparation • Seeds • Fertilizer • Pesticides • Water release • Crop Insurance • Risk management • Extension services
  77. 77. 6. Agri-match programme • Farmers Crops Rank order list (ROL) based on advisory. • State Rank order list based on Farm Grades. • Matched through a computerized mathematical algorithm. • Unbiased match, Similar to CET admissions. • Incentive or subsidies are given to get harvest of certain crops.
  78. 78. 6. Agri-match programme • Incentive or subsidies can be given NOT to grow certain Crops. • Provide Crop Holiday • Experimental Crops can be planned • Arrange matched Crops + Extension
  79. 79. 7. Investment, inputs & extension service (IIE) • Matched farmers provided IIE services • Kisan smart card based credit distribution • Distribution through Farm Co-operatives
  80. 80. 8. Continuous Online Crop health monitoring • Farmer / Farm Cooperatives • Extension workers • Regional sensors • Regional Metrology stations • Agri Drones • Krishi Satellite
  81. 81. Crop health monitoring: Krishi (Agri) Satellite Picture courtesy: Satellite Imaging Corporation
  82. 82. Assessment of Crop health using Agri Satellite (Krishi Satellitle) Agrowatch™ Green Vegetation Index Maps
  83. 83. Krishi (Agri) Satellite
  84. 84. 9. Extension services • Mobile based • Via Farm Co-ops • Extension workers • Optimum fertilizer use • Integrated farming • Pest management • Water management
  85. 85. 10. Purchase through E-Scales
  86. 86. 10. Purchase: through e-scales • All payments only through Cashless, online payment. • Adverse event: Insurance payment based on crop monitoring data • Subsidies / Incentives are added. • Full / 50% payment / Warehouse cash receipt (WCR). • Full payment at current market prices. • Payment after deducting Cost of input & investment provided.
  87. 87. 10. Purchase: Market driven prices • 50% payment at current market prices. • Warehouse cash receipt at current prices. • 50% Payment / WCR have option of WAITING for RIGHT PRICE. • At the time final sale, balance at the prevailing market price. • Investment & inputs deducted. • Subsidies & Incentives added.
  88. 88. 11. Prepare production/yield database • Crop type database • Regional database • National database • Ware house database
  89. 89. 12. Warehouse management system • Computerized warehouse management • RFID coded inventory • Online updating of Stocks • Every Grain is traced
  90. 90. 13.Sales through National Agri Exchange • Spatial integration of the markets. • One country, one price policy. • One window, uniform taxes / service charges • Movement of goods from low price to high price areas. • Low demand to high demand areas. • Final price = Original Price + Transport cost. • E-bay type online auction format.
  91. 91. 14. Logistics through GPS based vehicles • Accountable • Tracing • Prevents black marketing
  92. 92. Next - International Agri Stock Exchange • SAARC Agri Stock exchange • ASEAN Agri Stock exchange • ASIAN Agri Stock exchange • International Agri Stock exchange
  93. 93. Thank you! Please Contact me for more details: Dr. Prahlada N.B Karnataka ENT Hospital & Research Center, #29, Basava Bhavana, Bheemasamudra Road, Davalagri Extension II Stage, Chitradurga, Karnataka, India Mob: 9342310854 Email: prahladnb@gmail.com www.indiahearing.org/agriculture/

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