Masterminds

Sowing Prosperity-Boosting Agricultural Productivity

Asif Muhammed Yash Malpani Abhrajit Roy Ashish Pandav Ashima Dhankar

Team: MasterMinds

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Case OverviewKey Problem

AreasSmall Land Holdings

Technology Constraints

Imbalanced Fertilization

Food Grain Wastage

Dependency on monsoons

Appendix

70% workforce only contribute only 13.1% GDP

2007-2012Economic growth :8.16%pa

Agriculture growth: 3.6% pa

Average Global Productivity : 4.2 ton/hectare

Average Indian Productivity:3.1 ton/hectare

Contribution of agriculture to India’s GDP1990 : 30%2010:14.5%

Agricultural Productivity in India is hard hit

Identify key problemareas

Analyze the impact of the problems

Prioritize the problems based on impact

Propose solution for each problem

Differentiated Range Communication

Decline in GDP

Increase in import

Issues Effects

Roadmap

Case Overview Key Problem Areas

Small Land Holdings



Food Grain Wastage


Appendix

Key Problem

Areas

Small Land Holdings



Food Grain Wastage

Dependence on monsoons

1

Arable land area : 160 million hectaresNumber of agricultural holdings: 121 millionNumber of S&M farmers : 99 millionAverage size of land holdings: < 2 hectaresGross irrigated crop area : 82.6 million hectares

Facts & Figures

Disguised unemploymentPoor productivity of laborLiberalization & Globalization effectsChallenges faced in credit, technology and markets.Facing challenges in value chain integrationHigh vulnerability to external factors like market volatility and climatic challengePoor infrastructure and cold storage causing world's highest food spoilage rate

Challenges Faced





Food Grain Wastage


Appendix

52.652.8

5353.253.453.653.8

54

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

Percentage of Agricultural Land

Agricultural Land (km square)

156500001570000015750000158000001585000015900000159500001600000016050000

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09

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Solutions

Better agricultural practices

Better Government Policies

Technology (India spends only 0.5 % against most

developing countries who spent 1% )

i) High yielding crop varietiesii) Contract farmingiii) Proper water managementiv) Diversification to high value crops and allied activitiesv) Improved farming techniques like organic farming & horticulture

i) Better protection of farmers against imports : tariffs needs to be strengthenedii) Support systems have to extended to high value crops as well iii) Comprehensive social protection programs are requirediv) Reforms to improve efficiency of domestic markets and delivery systems.v) Organization of farmers into groups/associations and seek the help of private sectorvi) Providing irrigation facilities throughout

i) Increasing use of media and IT like e-choupal and alli) Improvements in Dry land technology.ii) Increased use of advanced technologies like zero tillage and alliii) Better use of bio-technology including genomics and bioinformatics etcv) Give more stress on mobile technolgy





Food Grain Wastage


Appendix

Agriculture Grid System

1

GAP

Yields are low Quality is inconsistent Farmers are poor Post-harvest losses Lack of knowledge about markets Missing link between lab to land Extension personnel per farm

family (1:300 to1:2000)

Technology generation

Technology dissemination

Pre-Sowing

Post-Harvers Markets

Pre-Harvest

Village Knowledge

Centre

NewspaperRadio

TV Program

Kissan Call Centre

SMSVideo Conf.

InternetE-ChoupalAgrisnet

EsaguWeb Portals

Agriculture information

Systems

Poor literacy level

Limited door delivery information

Constraint on power supply

Restriction by policies

Local Languages

Lack of reliable connectivity

Geographic Information System

Soil Management

Precision Farming

Remote sensing

Internet information systems

Decision Support System

Satellite Spectrophometer

Web based agriculture

Constraint on bandwidth

User friendly, easy to use systems

Changing mind-set of farmer for benefits of IT

Current Scenario

Information need of farmers

Current ICT Programs

Way ahead E agriculture

Challenges





Food Grain Wastage


Appendix

1

Per hectare consumption of fertilizerin selected countries- 2009

Country Consumption per hectare (N+P+K)(Kg)

China 396

Egypt 375

Korea 284

Pakistan 204.9

Bangladesh 188.3

India 156.1

World Bank Data

•Educating Farmers• Enhancing the availability & distribution network• Providing financial means (Credit)-although policies are there but the coverage is low

Solutions


As per scientific suggestions the use of N,P,K fertilizers should be in the ratio of 4:2:1.

Current NPK Ratio Utilization – All India

Year N P K

2009-10 4.3 2 1

2010-11 4.7 2.3 1

2011-12 6.5 2.9 1

Main reasons for low usage of Potassium and Phosphate is

Price DifferentiationPrice Ratio

Year DAP/Urea MOP/Urea

2009-10 1.9:1 0.9:1

2010-11 2.1:1 1.0:1

2011-12 4:5:1 3:1





Food Grain Wastage


Appendix

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Nutrient Based Subsidy

FY2011-12 FY2012-13 FY2013-14

Nitrogen 27153 24000 20875

Phosphorous 32338 21804 18679

Potash 26756 24000 18333

Sulphur 1677 1677 1677

Current Subsidy System

Subsidy on the Nitrogenous fertilizers fluctuates depending on the cost incurred by the fertilizer manufacturing company

Government decides the MRP of Nitrogenous fertilizers

Subsidy amount of Potash and Phosphorous based fertilizers is fixed

Therefore Potash and Phosphorous based fertilizers increases the MRP when more cost is incurred

0

200

400

600

800

1000

1200

1400

1600

1800

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Trend in Potash consumption

Solutions

•Extending Nutrient Based Subsidy to Nitrogen implementing direct transfer of subsidy•Securing Potash assets abroad so as to ensure supply as well as hedge against price inflation in case of artificial shortage• Promoting investments so as to boost indigenous production• Promoting the use of complex fertilizers such as 10:26:26 & 12:32:16






Food Grain Wastage


Appendix





Food Grain Wastage


Appendix

Food Subsidies in India in 2012-13 : 75,336 croresFoodgrains lost per year : 50,000 croresPercentage of chidren who are underweight or malnourished : 40Around 30-40 % of all fruits & vegetables get wasted when they move from grower to consumer

More than 30% of grains supplied through the public distribution system are lost because of storage constraints.India's storage facility : 70.5 million tonnesHigh food inflation : Around 12%

India's cold storage capacityEstimated at 29.7 million tonnesRequirement 61.1 million tonnes

Facts & Figures

Poor infrastructure : Road, Rails, PowerLack of refrigerated transportHarsh weather conditions CorruptionAbsence of good transport hubsBad post-harvest managementInsufficient storage capacityUncoordinated logisticsFragmented supply chain stakeholdersMiddleman is not working for the interest of farmersInadequate crop planning

Reasons of food grain wastage





Food Grain Wastage


Appendix

Modernize and upgrade the agricultural supply chainsImprove the infrastructurePromote food processing industriesRemove the export restrictions --> farmers will learn to improve quality and consistency --> will ensure that our farmers are competent and produce good quality productsStrong government policies : issues in land acquisition and all causes uncertainty in investments in infrastructureAccountability and transparency at bureaucracyPrice volatility has to be checked.Proper education and training of farmers.Proper grain bags for carriage.Small multipurpose low cost storage facilitiesBetter food processing techniquesLow cost small scale mobile processing technologies can be achieved through network of distributed franchisesUse of ICT's which would help farmers to forecast planting decisions, global supply and demand projectionsICT's to help to provide information about daily price information like e-choupalEnablement of larger private sector playersPolicies to favor Distributed productionSteps to universalize Micro financingSimplification and reduction of agricultural transport regulations

Solutions





Food Grain Wastage


Appendix

According to Dr T.N. Balasubramanian, Consultant to Dr M.S. Swaminathan Research Foundation (MSSRF), Chennai-Due to frequent weather aberrations- annual per capita food grain production: 207Kg(1995) declined to 186Kg (2006)per capita food grains availability: 177 to 155 Kg

Monsoonal torrents supply over 70% of India’s annual rainfall

Crops heavily dependent on rainfall: cotton, rice, oilseeds, and coarse grains.

Rain-fed agriculture: 60% of India’s total net sown area

SW monsoon is important: 72% of India’s annual rainfall is from the SW Monsoon which supports nearly 75% of the Kharif crop and India gets nearly 53% of its food from the Kharif season (June-October) as compared to the Rabi season (November-February), where the production is around 47%.

Facts & Figures

Channeling perennial rivers·Infra structural provision for rain water harvestingModern farming techniquesDeveloping economical artificial irrigation techniquesBetter weather forecasting in turn being used to make farmers aware of the possible rainfall. Knowledge about alternatives such as sowing a different variety of crop

Solutions





Food Grain Wastage

Dependence on monsoons Appendix

Focus Group Interviews

Mr. M.M. Rathi, National Fertilizers Limited, India DMO Godown, Bhopal, Madhya Pradesh Mr. Chouksy, Chief Manager, M.P. State Co-operative

Marketing Federation

Farmers

Industry Experts

Distributors

M/s Pragati Traders, Pipariya, India Mr. Pali Bhatia, Itarsi, Madhya Pradesh, India M/s Kisan Krashi Sewa Kendra, Bareli, India M/s Agro Deal, Bhopal, India M/s Maheshwari Fertilizers, Pipariya, India

Mr. Madho Singh Patel, Piariya, Madhya Pradesh Mr. Rajneesh Kumar, Dabka, Madhya Pradesh Mr. Alok Rathi, Bareli, Madhya Pradesh Mr. Sadulmulaji, Haripara, Gujarat Mr. Suresh Taori, Pandurna, Maharashtra

References

http://indiabudget.nic.in/es2000-01/chap813.pdf http://ies.lbl.gov/iespubs/41846.pdf http://pib.nic.in/newsite/erelease.aspx?relid=57975 http://en.wikipedia.org/wiki/Agriculture_in_India http://databank.worldbank.org/data/home.aspx

http://indiabudget.nic.in/es2000-01/chap813.pdf





http://ies.lbl.gov/iespubs/41846.pdf



http://pib.nic.in/newsite/erelease.aspx?relid=57975

http://pib.nic.in/newsite/erelease.aspx?relid=57975

http://en.wikipedia.org/wiki/Agriculture_in_India

http://en.wikipedia.org/wiki/Agriculture_in_India

http://databank.worldbank.org/data/home.aspx

Masterminds

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