by: Anubhaw Kumar Shandilya

Vision

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• Each family in the Indian village should be out of poverty and enjoy:

– Life with dignity, ‘voice’– Intra family equity – equal status for women– Freedom from hunger– Decent Income: 3 - 4 sources– Planned household expenditure– Risk management - life, health, assets and incomes– Education, health and shelter

Cost Assignment Approaches

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Direct DirectMaterials Labor Overhead

•Actual costing system Actual Actual Actual•Normal costing system Actual Actual Budgeted•Standard costing system Standard Standard Standard

Manufacturing Costs

Reducing Cost

“Reducing Cost often means the difference between success and failure.”

Why Standard Cost Systems Are Adopted

Standard costing systems enhance planning and control and improve performance measurement.

Standard costing systems facilitate product costing.

Agriculture Puzzle

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Reducing Cost of Agricultural Production inAndhra Pradesh: A Success Story

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Pesticides and Fertilizers account for >1/3rd of Total Cost of Production

Source: *NSS Report No. 497: Income, Expenditure and Productive Assets of Farmer Households, 2003

Andhra Pradesh C.M.S.A (Community Managed Sustainable Agriculture): Origins

Work of dedicated N.G.Os – establishing conclusively that pest

management more effective without chemicals

Work of eminent farmer scientists ( Palekar, Bhaskar Save, etc)

on holistic natural agriculture practices

2004 – 2007: Incubation phase – collaboration between

resource N.G.Os, womens organisations and S.E.R.P

2007 – onwards: scaling up – major role played by women’s

organisations and farmers groups

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AP Intervention:

• Adoption of Eco Friendly Agriculture Paradigm:-

“shifting from the dominant and conventional “external input-

driven” agriculture to “knowledge, skill-based and local

natural resource” model.”

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Key Elements Management by women’s organizations “Decentralized extension system”, accountable to grassroots

women’s organizations Positively exploiting locally available natural resources Bio-diversity Poly cropping - integrating household level food and nutritional

security Community Resource Person (CRPs) – scaling-up “by” the

community Unique collaboration – organizations of women, farmers, N.G.Os,

and Govt. Knowledge providers – practicing farmers, eminent farmer –

scientists ( from across the country), N.G.Os, eminent agriculture scientists.

Dynamic knowledge sharing – continuous R&D Intervention priorities decided by farmers, not by us.

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End – to – end solutions - along eco-agri value chains

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Resource Conservation

Soil Fertility

Moistureconservation

Smallirrigation

Agri

Marketing

Community marketing professionalsCommunity procurement centersTie-up with large coops & corporates

Quality & Value Add

Standards & Traceability

On-farm quality upgrade supportSmall Scale Infrastructure

Production & Productivity

Farmer field Schools

Community extension

Best Practitioners

Finance & Inputs

Bio-input enterprises

Local resource based pest mgmt

Credit & Insurance

Local Sales & Retailing

Food security lineTie up with wholesalers

Eco Agriculture• Process– Sub-district SHG federations engage NGOs, technical support agencies

through MoU– Village Organizations constitute independent sub-committees to manage

eco-agriculture initiatives– Inventory of local resources, documentation on beneficial

insects/predators, indigenous response systems– Farmers field schools, farmer field days, exposure visits, – Capacity building by farmer CRPs, knowledge sharing and communication

using ICT technologies (text alerts, call centers)

• Investments – in community owned knowledge dissemination system - Rs. 100 per acre per year for 5 years

• Resource fee collected from participating farmers – Rs.30 per farmer per year

• Self reliance in extension – 5 years for each village

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Non Pest Management System

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TRAP CROPS

TRAP CROPS

Initial Phase - No use of chemical pesticides but continued use of inorganic fertilizers

• Plant Protection•Summer plowing•Organic seed treatment•Trap crops (perimeter/rows)•Bonfires and pheromone traps •Sticker plates•Bird perches•Bio pesticides like agniastram, brahmastram, etc.

•Soil Health & Fertility Improvement•Application of microbial formulations like panchagavya, jeevamrutha, etc.

Agniastram – chilli, garlic, neem and cow urineBrahmastram – neem leaves, custard apple, castor, papaya, bitter guard, and cow urinePanchagavya – cow dung, cow urine, milk, ghee and curdJeevamrutham – jaggery, sugarcane juice, cow urine and dung

Natural resources based soil fertility management

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Crop 1(Cash Crop)

Crop 2(Food Crop)

Crop 3(Cash Crop)

•Soil fertility management:•Application of tank silt•‘Dung’ based inoculants•Biomass plantation on bunds, common lands, etc.•Azolla application for paddy crop

•Input Enterprises•Seed Banks•Input enterprises based on local materials

•Improving Cropping practices•Crop rotation•Multi-cropping•Strategic intercropping

•Mixed Cropping Systems•Tree farming and livestock as important ingredients

Economics of Eco-agriculture

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Myths broken• MYTH – 1: Eco-agriculture - Yield reduces, at least initially

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Source: SERP and World Bank (2009)

Contd…

• MYTH – 2: Agriculture is not possible without PESTICIDES

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ImpactsInnovation of A.P approach is bundling of micro credit, farm

extension and agri-marketing support to derive cascaded impacts for poor.

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Savings in Production Cost(helping farmers utilize local resources for pest mgmt and soil fertility

Promotion of Quality Standards

(on farm support for Preservation &

enhancement of quality)

Savings inMarketing Costs (scale economies

achieved in costs of Information, transaction and

market risks)

Enhanced PriceRealization

(value creation through quality and

transparent price discovery)

Shift from input centric to knowledge centric farming

Cultivation cost reduced by 40% saving

Increased access to land by poor

Reduced health risks for farmers

Paradigm Shift

“Investment Rs. 100,000 per family over 6 – 8 years for net incomes of Rs.50,000 per annumtoIncomes of Rs. 100,000 per annum in 3 – 5 years with an investment of Rs.50,000”

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