AGRICULTURE IN INDIA – A SYSTEMATIC APPROACH

Submitted by: Team Parthiv

Fedora Lia Dias

Dhananjay Gautam

Atheena Charly

Sithara M

Kishan Konannavar

Comparison of Agricultural profile

India China Brazil US Indonesia

Total Area (000 km²)

3287 9706 8515 9286 1920

Population (millions)

1241 1344 196.7 313.9 242.2

Agricultural land area (%)

60 56.21 31.27 44.1 30

Labor force in agriculture(%)

53 34.8 15.7 0.7 38.9

Agriculture contribution to GDP %

13 10 6 1 15

% of fertilizer produced

181.4 298.6 241.1 105.8 113.5

Agricultural machinery: Tractors Per 100 sq. km of arable land

128 81 129 271.3 2

PRESENT SCENARIO

Floriculture & Seeds

4%

Fruits and Vegetables

11% Processed Fruits &

Vegetables 12%

Animal Products

19%

Other Processed

Foods 18%

Non Basmati Rice 20%

Basmati Rice 13%

Wheat & Other

Cereals 3%

Fig.1

AGRICULTURE PRODUCE IN INDIA

Expenditure Gross Capital formation(GCF)

GCF in Agriculture %

2009-10 10870.15 160348 8.3

2010-11 17052.59 181562 8.2

2011-12 16354.70 212344 8.2

ECONOMIC PROFILE

Table 1 Table 2

Milk 35%

Fishery 2%

Oil seeds 3%

Sugar Cane 10%

Rice 21%

Wheat 18%

Coarse Cereal

6%

Pulses 5%

Other 50%

Consumption

Fig.2

Milk 17%

Fishery 1%

Oil seeds 4%

Sugar Cane 52%

Rice 10%

Wheat 10% Coarse

Cereal 4%

Pulses 2%

Other 26%

Production

Fig.3

Fertilizer Nutrient Consumption (Mill Ton)

Foodgrain Production (Mill Ton)

Incremental Fertilizer Nutrient Consumption(Mill Ton)

Incremental Food Grain (Mill Ton)

2005-06 20.34 208.6 1.9 10.2

2006-07 21.65 217.3 1.3 8.7

2007-08 22.57 230.8 0.9 13.5

2008-09 24.91 234.5 2.3 3.7

2009-10 26.26 218.2 1.3 -16.3

2010-2011 29.93 225.5 3.7 7.3

Fruits 35%

Vegetables 31%

Cereals 15%

Fishery 7%

Others 12%

Wastage of food

Fig.4

Table 2

Problems

Increase in fertilizer but

decline in productivity

(table 2) 40% Food wastage

(Fig.4)

Increase in import and decline in

export

(Fig.6)

Food crisis Farmers suicide

Growth in farm output has slowed

down

Only 13% contribution

to GDP

0

5

10

15

2007-08 2008-09

2009-10 2010-11

Agriculture import to total import %

Agriculture export to total export %

Fig.6

ROOTS OF LESS PRODUCTIVITY

Farmer

• 3.3

Trader

• 4.1

Wholesaler

• 1.7

Retailer

• 2.5

Consumer

• 11.6

Farmer

• 2.2

Trader

• 2.3

Wholesaler

• 1

Retailer

• 1.5

Consumer

• 7

Cost build up for one kilogram of average basket of fruit (fig5a ) and vegetables(fig 5b)

Fig.5(a)

Fig.5(b)

Causes

Markets underdeveloped

Fragmentation of land

Produce do not meet

international standards

Lack of storage facility

Middle level broker

(Fig. 5)

Lack of technological development

Climatic changes

Insufficient professional education of agriculturist

Existing Govt. Schemes

• Rashtriya Krishi Vikas Yojna • Mahatma Gandhi National Rural Employment

guarantee act • Rashtriya swasthya Yojna • Integrated Rural Development Program • Gramin Bhandaran Yojna • Backward Region Grant Fund • Marketing Research & Information Network • National Agricultural Insurance scheme • Pilot weather based crop insurance scheme • Micro irrigation

NO SYNCHRONIZATION

HENCE!!! PROPOSING A NEW STRATEGY WHICH MAKES

AGRICULTURE SECTOR A PUBLIC SECTOR UNDERTAKING CALLED

AGRICULTURAL DEVELOPMENT BUREAU

(ADB)

BUT!!!

STRATEGY (Introduction of ADB)

Development Motivation

Boosting Research and Technology in

Agriculture

Formation of Agriculture

Development Bureau (ADB)

ADB Offices in each District

Survey and Communication

Dept..

Human Resource Dept.

Seeds and Fertilizer shop

Finance & Insurance

Dept.

Machines & Tool Dept. Storage Dept.

Marketing & Collection

Dept.

Research Centre

Consultancy of

Agriculture

Vetenary Dept.

Laboratory

Seminar and Conferences

National Competition

in Agriculture

Local Seminar arranged by Offices

Panchayat Meetings

Prize Money for Winners

Exhibitions

Sharing of Techniques

Survey & Communication

Dept.

Collecting samples of Field

•Testing of Soil

•Soil enriching fertilizer selection

Collecting Data

•Crops Type

•Productivity

•Land Distribution and Holding

•Barren Land for dairies and Poultry

•Productive Land for cultivation

•Marine Place for fishing

Resource Requirement

•Crop Rotation

•Demand forecasting

Weather forecasting

Human Resource Dept.

Registration of Farmers

Registration of Unemployment

•Providing employment in Agriculture

Communication with Survey and Fertilizer Dept.

Receiving Complaints

•Communication with Research Centre for solution

Machines and Tools Dept.

Provide Machines and Tools on rent on subsidized

rate

Estimation of Machines and tools required

for the particular land.

Procurement according to requirement

Storage Dept.

Construction of local Storage

near farms per 10 Hectare of

farm

Registered Cold Storage

for Every Office

Emergency Storage Facility

Finance & Insurance Dept.

Provision for Agricultural Insurance

Giving loans to farmers

Providing free financial

counseling to the Farmers.

Keeping records for all

in and out

Marketing & Collection Dept.

Collection of products directly

from farmers

Transportation Facility

•To carry product from smaller to higher unit

Calculation of market value of Products

•Communication with current market

•Analysis of future market trends

Rate display for both selling and

buying of Agricultural

Products

Seeds and Fertilizer Shop

Receiving data of land and farmers from survey & HR

Dept.

According to the need it distribute:

•Particular seeds for particular land

•Fertilizer after seeing the soil analysis by survey dept.

Provide food material and medicines for poultry and

dairies

Agriculture Development Bureau Departmental Structure

ADB Central Units

4 central units in each zone, i.e north, east, west, south

Planning and execution

Ensuring the flow of different goods all over the country

Finding out markets for exporting

Deciding the market value of products

Giving instructions to head offices

Fund allocation to smaller units

Maintaining record of investment and gross capital formation

Regular inspection

ADB Head Offices

One head office for coordinating 5 ADB units

Research and development

Giving technical assistance

Maintaining exchange of tools and machineries

Distribution of seeds, fertilizers & other inputs

Maintaining quality of processes

Planning and distribution of the products to market

ADB units

One ADB Unit for an agricultural population of 25,000 people

Seven departments come under each unit as mentioned above

Providing cold storage houses

Management of farmers and land allocation

Collection of products from farms

Getting unused land on lease

Supply of machineries

Supply of seeds, fertilizers & other inputs

HIERACHY OF ADB SYSTEM

Setup of Agricultural Development Bureau : A Case Study in Kerala

Setting up of ADB Head Office

• Total Population: 33.4 mill

• Population in Agriculture: 3.2 mill

• We divide 14 districts into 6 zones and, as shown in figure, establish one ADB head office for each zone.

• Hence, the agricultural population is evenly distributed in the six zones.

Setting up of ADB Units

• For each ADB head office 5 ADB units should be there.

• ADB unit’s range should be decided according to the agricultural population in each district.

• ADB units function as per the rules and regulations in the strategy explained in earlier slides.

• After successful implementation in Kerala, the strategy can be implemented throughout the country.

Planning

• Survey of Agricultural land & collection of agricultural statistics

• Planning organizational hierarchy

• Developing ADB Head Office

• per five ADB unit

• Research Centre in one head office as explained above

• Provide technological assistance

• Coordination with ADB unit

• Deciding demand & supply of Agro Products

• According to Farmer Population division of Agro land & assigning ADB units per particular fraction of land.

Developing Infrastructure

• Setting up ADB Head offices

• Existing R&D centers should merge and setting up new if required

• Building offices by the funds which is given for Submerged schemes

• Setting up ADB units

• Existing local offices and Govt. shops are included

• Present storage godowns are used and building new storage if required

• Supply of Machinery and tools depend of type of farming

• Seven Departments should be set up as explained above

Recruitment

• Specialist Officers in Agriculture, Technology and Management recruited

• First recruitment for Central unit is done then recruitment for ADB units should be done.

• For each seven departments different skill set and different field of people required.

• Large number of vacancies for clerks, drivers, shopkeepers, accountants are evolved

• Complete man force according to the Organizational Hierarchy should be recruited.

STEPS INVOLVED IN IMPLEMENTING THE SYSTEM

Challenges

• Raising funds

• Developing Infrastructures

• Merging of current schemes will be difficult

• Transfer of employees from present schemes to ADB

• Allocation of Resources

• Large initial Investment

• Giving Boost to new Technology

• High level management

Advantages of ADB Proposed System

• Increase in productivity

• Removal of farmer exploitation

• Removal of Middleman

• Reduction in wastage of crops and food

• Technological development

• Security and insurance for farmers

• Profit for both Govt. and Farmers

• Increasing employment

• Enriching soil with fertilizers and crop rotation

• Opportunity for research and innovation in agriculture

• Reduction in Poverty of famers

• Ensuring National food security

• Improve in quality of food

• Rise in export of agricultural products

• Synchronization of different Govt. Schemes

• Effective utilization and distribution of resources

Disadvantages

• Huge investment is required

• If present schemes are not merged then it is very difficult to continue with this scheme

• Miscommunication between different department is very necessary otherwise system will fall

• It is very difficult to change mentality of farmer about the new techniques as they stick to the old approaches

Refrences

• World Bank Data

• Reserve bank of India, handbook of statistics of Indian economy

• Ministry of agriculture

• Department of agriculture and cooperation

• AGMARKNET

• Central Statistical Organisation

• http://agricoop.nic.in/agristatistics.htm

• www.agcensus.nic.in

• www.wikipedia.org