PRIVATISATION OF EXTENSIONP.PRASHANTH PhD SCHOLAR Dept. of Agricultural Extension ANGRAU, HYDERABAD Prashanth897@gmail.com

Seminar OutlineConcept Need for Private Extension Private Sector Extension Providers Role of private sector extension Potentials Merits of Privatisation Demerits of privatization International experiences & its relevance in indian context

Concept of Private extension/PrivatisationBloome (1993) Privatisation involves extension personnel from private agency/ organisation Ven den Ban and Hawkins(1996) Clients are expected to share the responsibility for service/ pay the service fee Saravnan and Shivalinge Gowda (2000) Act as supplementary or alternative to public extension service

Reasons behind the Privatization issue1.Financial burden on government 2.Disappointing performance of public Extension Service 3.Commercialisation of Agriculture

Need for Private Extension1. Fiscal Crisis 2.Poor Performance 3. Changing contexts and opportunities 4. Untrained and ill trained extension worker 5.Changes in demand and consumption pattern 6. Changing Farming Systems 7. Declining Public investments in Agriculture International Developments

PRIVATE SECTOR EXTENSION PROVIDERS Input

dealers Agri- Business organizations Producers cooperatives Agril consultants Agril consultancy firms KVKs Media organizations Private sector banks Donor agencies Unemployed Agricultural Graduates

PRIVATE CORPORATE FIRMSTheir own research, extension, marketing and promotion wings. Extension activities is also supported by providing credit, subsidies and inputs. They have their own farm magazines in local languages and also training centres. some commodity boards also introduced charging system for extension services like soil analysis, farm visits, training and publications.

INPUT SUPPLIERSPesticide sellers Seed producers Fertilizer companies,etc

Many of the agro-input companies performs some extension functions.

marketing officers are the one who also oversee the extension related functions. Input companies spend considerable amount on advertisement, mainly to boost the sale of their products through bill boards, wall paintings, leaflets and media advertisements, few demonstrations. Some companies also sponsor the cost of some extension activities of line departments such as agricultural seminars But in high value crops such as flowers, there are input firms which provide total extension support to their growers. This includes advise from site selection to technological guidance throughout the growing period and advise on marketing Some fertilizer companies arrange soil testing facilities

NGOsAround 15,000 - 20,000 NGOs in India - rural development. Wide variations in the densities of NGOs is observed Annual NGO revenue from abroad is around Rs.9 billion In Rajasthan on pilot basis, few AAO circles are handed over to NGOs to carry out extension work.

FARMERS ASSOCIATIONSstarting points for the development of producers cooperatives. The need for initiating farmers associations in crops has been well recognised NGOs to organise farmers into groups. The idea is to encourage farmers groups to organise different types of services for themselves, including input supply, credit and or technical services and marketing arrangements activities that would increase their productivity and incomes, while decreasing their dependence on government (ICAR, 1998).

MEDIA ORGANISATIONSAIR & Doordarshan:Now-a-days many private TV channels are telecasting agricultural programmes considering the cost effectiveness (cost / farmer), time at which they can reach many farmers at a time and the effectiveness of the media, efforts are needed to harness this potential

Media print:Organised attempts to use print media for extension work in DOA and Universities.- books, magazines, leaflets, newspapers

ROLE OF PRIVATE SECTOR EXTENSIONInput

supply Farm advisory service Market information Processing and Marketing the produce Credit facilities Infrastructure facilities

POTENTIALS OF PRIVATE SECTOR EXTENSION

Market Oriented Services Client Specific Entrepreneur-oriented Initiative, drive, commitment Quick decisions-making Accountability Decentralisation Flexibility Demand driven

POTENTIAL PRIVATE PARTNERS

Unemployed Agricultural Graduates Agricultural Consultants / Firms Para technicians Progressive Farmers Farmers Organisations / Co-operatives Non-governmental Organisations (NGOs) Krishi Vignana Kendras (KVKs) Agri-Business Companies Input Dealers Newspapers /Agricultural Magazines Private Television Channels Information Communication Technology

LIMITATIONS PRIVATE EXTENSIONLimited

reach in terms of farmers and

crop Neglect of resource poor farmers Inadequate network Selective technology use More profit oriented

A few innovative models17

Appachi Cotton Cultivation (ACC) Sugar industry Zameen organics- a Dutch partnership Rural Organics Pvt. Ltd Excel-Parle-Farmer partnership BAIF an NGO in AH services Dhanuka in MP

Mahindra & Mahindra Farmers One Stop Shop20

Input supply Technical consultancy Credit Output procurement Sale / renting of machineries

Samaikya Agri-Tech21

Andhra Pradesh 18 villages in 5 districts Extension services on charging basis

Services Provided22

TOT daily basis Computerised village agriculture information resource based Online contact with experts Mini weather station-data collection and forecasting Soil analysis Sale of inputs Marketing extension service Village development activitiesPPP AGRI EXTN 0709 RR

Nagarjuna Chemicals & Fertilizers Farm management Services23

Started 1995 Technical information on day to day bases Supply of inputs Marketing of produce Ikisan.com information service Package of practices of major crops Electronic forum to solve farmers problems

Agro Agro Service Centers, Gujarat

Gap analysis. 12 centres managed by agricultural graduates. Each centre catering to 2000 farmers. Low cost, no cost technologies and ICM practices. Free extension service. Case sheets for each farmer. Good price for produce. Industry linkage for marketing. Revenue through sale of inputs and marketing.PPP AGRI EXTN 0709 RR

ITC IBD Choupals25

One stop shop Soya choupals Aqua choupals Coffee clubs Planning to extend to wheat, pulse, Groundnut, sesame, paddy, Black pepper, Tobacco

Raitha Mitra Yojane: Karnataka26

is the new demand driven agricultural extension system of the Karnataka state. It has replaced the earlier t & v system of agricultural extension. The agricultural extension centers opened under this new programme at hobli level are called raitha samparka kendras (rsk) with the multidisciplinary approach taking the help of input agencies, NGOs and farmer groups

CASETata Kisan Kendras of Tata Chemicals y Service Units in 470 locations y Contract farming practices in 40000 acres covering Basmati rice, wheat, mustard, soybean and potato y Services provided for sowing, fertilizer application, plant protection, custom hiring and other agri value chain

The case study of Tata Kisan KendraTata Chemicals Ltd embarked upon an ICT initiative to provide farmers with the value-added services and improving their productivity and income levels. Services: Agro input suppliers, farm equipment leasing, bulk blending, Geographical Information System, training and skill development, insurance and credit facility The farmers had high level of trust for Tata Chemicals since the company had been operating in the region for a very long time.

The private initiative taken by Tata Chemicals Ltd started with an objective of providing the farmers with infrastructure support, operational supports, coordination and control of farming activities, and strategic support.

Tata Kisan Kendra (TKK) TCL's extension services,brought to farmers through the TKKs, use remote-sensing technology to analyze soil, inform about crop health, pest attacks and coverage of various crops predicting the final output. This helps farmers adapt quickly to changing conditions. The result: healthier crops, higher yields and enhanced incomes for farmers.

Merits of PrivatisationExtension generates new income, extension become economic input. Provides demand-driven service. Increases the voice of farmers in the extension service. Extension service becomes more cost effective with efficient and quality service.

Privatisation complement or supplement the efforts of public extension. Extension personnel become more clients accountable. Private extension increases staff professionalism. Clients (farmers) are more committed to service. Private extension concentrates big and progressive farmers and areas having favourable environment. Private extension is less education oriented and more commercial in nature. Private extension doesn't concentrate only on food grain production but will promote crop diversification.

Demerits of privatization of extension serviceSocial distance Social conflict Social disequilibrium Higher gap between have and have not Side lining coming of farmers Selectiveness of technologies for adoption Commercialisation with human value Shortage if essential food grain required at rural village level. With temptation to act as middleman rather than food producers.

Factors considered for privatization of Agricultural Extension Services in IndiaTypes of crops cultivated throughout the country. Socio-economic strata differences among the farming Entirely drastic agro-climatic variation along and across the length and breadth of the country. Different approaches followed in various developing and developed countries and their utility possibilities in our country, environment etc: Changes in rainfall pattern, vagaries of monsoon, floods, cyclone etc.

INTERNATIONAL EXPERIENCES & ITS RELEVANCE IN INDIAN CONTEXT

Broad experiences can be considered to strengthen the extension services for designing an alternate and viable model to suite to our conditions.

Some observations of private extension scenario worldwide :Private extension reduces the economic burden of governments Netherlands Increases the efficiency of extension services provided upto the satisfaction of farmers

Privatisation increases the competency of the research system Extension contract system in China

Government can ensure quality extension services by technically competent extension agents through legislation certification in Germany Government can privatize extension while concentrating more on important areas Tunisia Government can have maximum control over private extension activities Chile

AUSTRALIALargest experience with fee for service extension activity in the world, having introduced fee based advisory service. Interviews revealed that it was an unhappy experience Implementation of cost recovery policy-major restructuring;major role for field staff!

UNITED KINGDOMADAS operated under a wide range of commercial operations. Promotes direct payment by users without privatization of extension services Novelty approach-charging for certain services a time cost basis.previously offered free!

BRITAINThe agricultural and advisory service(ADAS) charge fee for services of direct benefit to the clients,but not for the services which spread benefits across society,such as those relating to soil conservation

NORWAYWhile the Government pays salary,the farmers circle pays the operational fees(as 50:50 cost sharing agreement)

MEXICOIs planning to shift at least half the cost of extension services to farmers groups in irrigated areas.It is emphasising cost cutting through privatisation and user of mass media

KOREA & TAIWANThe co-operative structure of extension has developed in two far eastern countries ,korea and Taiwan

CHILEGovernment provides funds(80%) to private technology transfer consultancy firms which comprises of one or two agronomists and a few agricultural technicians.

NEW ZEALANDPrivate consultants play an important role in agriculture in the industrialised country

CANADACommodity groups fund and control their own extension agronomists

TURKEYExtension cost is shared between farmer groups and the government through the chambers of agriculture.(world bank,1994)