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from thepublishers deskEver wondered how much an average Indian meal travels to get from farm to plate?

Believe you us; it is definitely not as simple as it sounds!

Our Cover StoryAgriculture Services: A Journey from Farm to Plateenlightensreaders on the wide network of agricultural services, which work at multiplelevels simultaneously and throws light on its revenue and employment generatingcapabilities.

Finance is crucial for every sector, and agriculture is no exception either. The articleonAgri-Finance Institutions: Major Players in Agribusiness Developmenttalksabout the various agri-finance institutions and the crucial role they play in revitalising

the agriculture sector.

Act smart is the buzzword! The marketing of agriculture products is undergoingrapid transformation andOrganic Certification: Smarter Way to Market

Agriculture Productssuccinctly elaborates on this emerging trend.

India is finally waking up to the potential of Research and Development (R&D) inagriculture. The articleAgricultural Research in Indiaspells out the evolution anddevelopment of research, and lists out the benefits it entails.

Learning from the better practices of others has always been our forte. In theInternational section, the article onIndia-South America Trade Ties: An Insighton Marketing Agricultural Produce and Preventing Crop Lossmakes for aninteresting and insightful read.

The case studySoil Based Integrated Management of Flood and Flood PlainSoilsis an in-depth and well-researched piece of work, which talks about thejudicious management of flood.

International cooperation is the way to go forward. AndBRICS Agriculture TradeJumps Manifold; Trends Reveal Healthy Cooperationshows the jump in thevolume of trade within BRICS.

Theres plenty in store in this edition ofBusiness of Agriculture (BoA).Keepyourself updated with theNews & Happeningsfrom the agriculture industry,spread across the pages.

Enjoy Reading!

Linda Brady HawkePublisher


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Business of Agriculture|September-October 20144

Contents

DISCLAIMER: The views and opinions expressed

in this magazine are solely those of the authors

and do not necessarily reect those of the editors

or publisher. Although all efforts have been made

to ensure the complete accuracy of text, neither the

editors nor publisher can accept responsibility for

consequences arising from errors or omissions or

any opinions or advice given.

September-October 2014

Edited, Printed & Published by

Linda Brady Hawke

Owned by

L. B. Associates (Pvt.) Ltd

H-108, Sector 63, Noida - 201301

U. P. IndiaPublished from

L.B. Associates (Pvt) Ltd

H-108, Sector 63, Noida - 201301

Gautam Budh Nagar District

Noida, UP, Delhi NCR, India

Tel: 91 (120) 4727108, 2427419

Fax: 91 (120) 2427108

Email: [email protected]

Websites: www.diplomatist.com

www.lbassociates.com

Managing Editor

William [email protected]

Editor-at-LargeAlankar Srivastava

Desk Editor

Aamir H Kaki

Business Manager

Maninder [email protected]

Tel: +91 120 4727117

Asst Manager - Brand & Event

Shekhar Upadhyay

[email protected]

Circulation

Rahul

[email protected]:+91-8130311653

Layout & Design

Atul Kumar

Pradeep Bisht

6 News & Happenings

COVER STORY

14 Agriculture Services: A Journey from Farm toPlate

INNOVATION

22 Agri-finance Institutions: Major Players inAgribusiness Development

27 Bids Adieu to Traditional MarketingTechniques to Harvest Gold from Agriculture

TECHNOLOGY

30 Organic Certification: Smarter Way to MarketAgriculture Products

R&D

35 Nematode and Soil Fungal Biological ControlSolutions: The Nico Orgo Viewpoint

38 Agricultural Research in India: Evolution andDevelopment

September-October 2014


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Business of Agriculture|September-October 2014 5

SOCIAL ENTREPRENEUR

42 Farmer to Consumer Initiative

CASE STUDY

48 Mangrove Restoration through PPP

52 Soil Based Integrated Management of Floodand Flood Plain Soils

FINANCE

58 Agri Finance Consultancy to Farmers: Crucialto Bridge the Knowledge Gap

60 Agriculture Consultancy Services:Strengthening and Transforming Agribusiness

Agriculture

INTERNATIONAL

66 BRICS Agriculture Trade Jumps Manifold;

Trends Reveal Healthy Cooperation

70 India-South America Trade Ties: An Insighton Marketing Agricultural Produce andPreventing Crop Loss

74 International News


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HAPPENINGS

The cultivation of kharif crops is lower by 44.91 percent

so far in Maharashtra, Madhya Pradesh and Rajasthan

compared to the corresponding period last year owing

to delayed and deficient southwest monsoon. The latest

official figures show that the total kharif sowing is lower by

281.84 lakh hectares at 345.60 lakh hectares planted so far.

The sowing of paddy is lower by 17.38 percent compared

to last year, pulses is lower by 60.19 percent, coarse

cereals by 62.04 percent and total oilseeds plantation is

lesser by a whopping 72.12 percent over last year.

The sowing of cotton, which is hit by delayed monsoon

in parts of Gujarat and Maharashtra, is lowered by 44.30

percent than last year in the corresponding period.

Sources said rainfall activity in parts of Maharashtra,

Madhya Pradesh and Rajasthan in the last few days would

have improved sowing which will be reflected in the

statistics released next week.

Scientists are trying to develop heat-stress resilient, high-yielding and nutritionally enriched maize varieties

to face the challenges of global warming.

The Global Maize Programme, an initiative of the International Maize and Wheat Improvement Centre, is

intensively pursuing the development of heat-stress resilient, high-yielding and nutritionally enriched maizevarieties in order to face the challenges of global warming and meet the global demand for maize, the

agencys director Prasanna BM has said.

With the financial assistance of United States Agency for International Development (USAID), the

CIMMYT has undertaken Heat-Stress Resilient Maize for South Asia, a five-year project, for developing

heat tolerant and high-yielding maize varieties, specifically suitable for South Asian climatic conditions. The

project has commenced in 2012 and will end in 2017, Mr. Prasanna said at a press conference at the

University of Agricultural Sciences (UAS).

What about

Irrigation and

Drinking Water

Scheme, ask

FarmersExpressing their disappointment over

the Yettinahole project envisaging

diversion of the Nethravati, farmers

in Dakshina Kannada urged the

Karnataka government to first provide

a comprehensive irrigation and drinking

water scheme for the district.

Speaking at a meeting, Karnataka Rajya

Raita Sangha leader Ravikiran Poonacha

said Farmers in the district would not

allow implementation of the project

unless the government meets their

demand.

The district is bereft of any irrigation

scheme and farmers are forced to spenda lot to irrigate plantations and paddy

fields. In such a situation, there is no

question of allowing the river diversion

project, he said.

Farmers in the district were kept in

the dark about the project even as no

scientific study appeared to have been

carried out on the quantum of water

available in the Nethravati during the

monsoon and the summer added Mr

Poonacha.

NEWS&H

APPEN

INGS

Search for Better Varieties of Maize Continues

Weak Monsoon HitsKharif Sowing


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HAPPENING

S

Mushroom growers of Ganjam district in Odisha fear that they may not get any compensation for their

losses during cyclone Phailin in October 2013.

Their fear is based on information they got from the office of the deputy director of horticulture inBerhampur through an application filed under Right to Information (RTI) Act. A mushroom grower of the

district, B Narasinga Rao had filed this RTI application to know the number of mushroom cultivators, who

had been affected by Phailin.

In its submission of information under RTI Act, the office of the deputy director of horticulture mentioned

that number of mushroom cultivators affected during the cyclone was not available in their office. Mr Rao

said it was ironical that the very department which should have kept track of mushroom cultivation and

the farmers involved in it has not kept track of their losses during the cyclone. According to him, in the

disbursement of compensation for agricultural losses during Phailin, mushroom growers may not get any

succour.

Proper Caution Neededfor GM CropsUnion Minister of State for Environment Prakash

Javadekar said that proper caution has to be taken

in the context of genetically modified (GM) crops

and India cannot say no to science.

Speaking at the launch of the Fifth Assessment

Report (AR5) of the Intergovernmental Panel on

Climate Change (IPCC), he said, We have not said

no to science. Nobody can say no to science. Yes,

we have to take proper caution, we have to take

proper action. But you cannot deny it. We are not

living in Galileos times. Galileo was telling the truth

and he was punished. That was the worst day for

the world.

The event was organised by The Energy and

Resources Institute (TERI), in co-operation with the

IPCC and the Climate Development Knowledge

Network (CDKN), among others. Mr Javadekar

said he was of the firm opinion that whichever

country doesnt believe is science is doomed to fail

and will be left behind.

Govt to use Radiation

Tech to Preserve

Vegetables

The government plans to use radiation

technology developed by the Bhabha

Atomic Research Centre (BARC) in order

to improve shelf-life of fruits and vegetablesespecially onions, potatoes and tomatoes to

address the issue of supply side shortage,

which often results in price rise.

An inter-ministerial group convened

by Transport Minister Nitin Gadkari

apprised itself of the technology during a

presentation by BARC scientists. Among

those present were Union Food Minister

Ramvilas Paswan, Agriculture Minister

Radha Mohan Singh, Food Processing

Minister Harsimrat Kaur, nuclear scientist

Anil Kakodkar and BARC Director Shekhar

Basu.

BARC has developed a radioactive

technology for preserving agri-commodities.

We had an initial discussion on how this

technology can be used on a large scale

in the country to address supply crunch

in some vegetables like onion, potato and

tomato, Mr Paswan said.

Phailin-Hit Mushroom Farmers may not

get Compensation


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The Reserve Bank of India (RBI) has finally agreed for rescheduling of crop loans for which the Andhra Pradesh

government lobbied hard, but with several riders that include restricting the coverage to some farm loans in

four districts and not including those taken against gold.

In a letter sent to the Chief Secretary, IYR Krishna Rao, the RBI further restricted the relief only to short-

term production loans extended by commercial, cooperative and regional rural banks in the four districts of

Srikakulam, Vizianagaram, Nellore and Krishna which it said, was based on normative criteria. Loans taken

for allied agriculture activities would not be eligible.

The other loans not eligible for crop loan scheme for reschedulement include advances against pledge or

hypothecation of agriculture produce other than standing crop, tied loans and closed crop loan accounts.

The reschedulement will be limited to a period of three years, comprising one -year moratorium and two

years reschedulement.

Cultivate New Varieties:

Cane Institute to Farmers

The Sugarcane Breeding Institute (SBI),

Coimbatore, has urged farmers to cultivate three

new tropical sugarcane varieties introduced by it

recently to increase production.

Inaugurating the 45 meeting of the Sugarcane

Research and Development Workers of Tamil

Nadu & Puducherry, organised by the SBIand Kothari Sugars and Chemicals Limited, N

Vijayan Nair, Director, SRI, Coimbatore, said

that the varieties such as Co0403, Co06027,

and Co06030 would be highly suitable for Tamil

Nadu. They had been tested in different locations

of the country including Tamil Nadu. The trial

cultivation of them had given high yield than some

of the earlier varieties. Though the institute had

distributed seeds of newly notified varieties to

a group of farmers, there was a need to grow

nurseries in large numbers to improve their

popularity among farmers. Hence, sugarcanefactories should take steps to raise nurseries with

the help of farmers in their cover areas. The sugar

industry should take a lead role in popularising

the varieties, he said.

Emphasising the need for adapting modern

technologies , Mr Nair said farmers should

come out of their age-old traditional practices.

If they followed new methods, prescribed by

the research agencies and institutes, they could

improve productivity with less water and efficient

pest management.

The government has chalked out plans to promote the

cultivation of four special traditional rice varieties in

the State that have been included in the Geographical

Indications (GI) registry of India.

An amount of `2 crore has been allocated in the

annual Plan to bring 2,000 hectares of land under

cultivation of Pokkali, Njavara, Jeerakasala, and

Gandhakasala rice varieties that have received the

GI tag, signifying the unique qualities attributable to

their place of origin.

Farmers will be offered an incentive of `10,000 a

hectare to take up the cultivation of these unique

rice varieties. Agriculture Director R Ajithkumar said

efforts were on to work out a marketing mechanism

for the special rice varieties with the help of Oil

Palm India.

NEWS&H

APPEN

INGS

RBIs Scheme of Rescheduling Farm Loans comes with Riders

GI-Tagged Rice Varieties

to get a Boost

HAPPENINGS


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Indian Farmers Fertiliser Cooperative Limited (IFFCO)has moved 2,640 tonnes of fertiliser for sambacultivation.

A consignment of 2,640 tonnes of basal fertiliser hasbeen sourced from its unit in Paradeep, Orissa. Theconsignment would help farmers in Tiruchi, Ariyalur,Perambalur, Thanjavur, Karur, and Pudukottai districts,said D Subramanian, Chief Area Manager, IFFCO,Tiruchi region. The consignment included 1,800 tonnesof IFFCO Phos (20:20:0:13) and 840 tonnes of DAPSteps have been taken to avoid scarcity of fertiliser asan estimated 12 lakh acres would be brought undersamba cultivation simultaneously across the centralregion, he said.

Mr Subramanian said that for the first time, IFFCO has started marketing zinc sulphate to cater to the demands

of farmers.

Horticorp to step upProcurement ahead of Onam

The Kerala State Horticultural Products Development

Corporation (Horticorp) is preparing to step up

procurement from the main vegetable-growing

hubs at Kanthalloor and Vattavada in Idukki district

to meet the spike in demand during Onam season.

Horticorp managing director VV Pushpangadan said,

The business at the festival fairs was expected to go

up by five or six times in the run-up to Onam.

In addition to the mega fairs named Ona Niravu, we

have opened 350 stalls and 17 mobile outlets where

customers can purchase fruits and vegetables at a

discount of 20 to 30 percent. Another 25 mobile stalls

will also be opened, he said.

The corporation is procuring vegetables from

domestic farmers through its district procurement

centres, World Markets under the Agriculture

Department, and self-help groups under the Vegetable

and Fruit Promotion Council Keralam, he added.

Karnataka Farmers to

get Farm Equipment on

Rent

Soon agriculturists in Dakshina Kannada

will be able to take home farm equipment

on rent as the Department of Agriculture

will open five centres, in association with a

non-government organisation, where they

will be rented out.

They will be called called custom hire

centres. A committee would fix the rent

on per-hour per-day basis to suit all types

of farmers. It would be less than the market

rent charged by private parties, according to

sources in the Department of Agriculture.

In addition to Dakshina Kannada, the

Department of Agriculture would open

the centres in all other districts in the

state in association with non-government

organisations (NGOs). A committee

headed by the Chief Executive Officers

(CEOs) of zilla panchayats would fix rent,

decide on the equipment required by

farmers and monitor the functioning of the

centres. The committee would have farmer

representatives as well.

IFFCO Moves 2,640 Tonnes of

Fertiliser for Samba Cultivation

HAPPENING

S


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India has today become an area of priority. One

prime reason for the same stems from the reason

that years of high growth in the Indian economy

have resulted in a significant rise in the volume of

freight traffic moved. This large volume of traffic

has provided for growth opportunities in all facets

of logistics including transportation, warehousing,

food supply chain, freight forwarding, express

cargo delivery, container services, shipping services

etc. During his address, he also complemented

the WDRA, for making efforts for granting

infrastructure status to logistics as with it in place

the industry will be subject to certain entitlements,

leading to the betterment of the logistics sector.

The Industry Perspective was presented by RS Bedi,

Chairman, Task Force on Logistics Management,

PHD Chamber. He emphasised the requirement

for a large number of cold storages and warehouses

in the country. He also expressed concern about

the poor maintenance of warehouses and the lack

of cold chain infrastructure in the country. In spite

EVENTS


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of all these drawbacks, he stated that the logistics

sector has a bright future in the country and the

expectation is that a tipping point for the industry

will soon be reached, which will propel it to greater

heights.

The Conclave was divided into three panel

discussions which were focussed on Multimodal

Transportation; Cold Chain; and Warehousing

Sector, respectively. In each session, leading

representatives from the logistics industry

expressed their views on the subject and

participants were immensely benefited from the

meaningful and valuable views of the panellists.

Some of the senior representatives from the

industry who attended the Conclave as Speakers

were: BN Puri, Executive Director, Asian Institute

of Transport Development; MS Mathur, Executive

Director/Traffic/PPP, Ministry of Railways,

Government of India; Vinod Nautiyal, Chairman and

Managing Director, EXPAN Logistic; SL Sharma,

President, The Air Cargo Agents Association of

India (ACAAI); Vanish Ahluwalia, General Manager

- Northern Region - NVOCC, All Cargo Logistics

Ltd; Pankaj Kumar, Director, Ministry of Food

Processing Industries (MOFPI), Government of

India; Rajesh Agarwal, Director, Crystal Group;

Jasmohan Singh, MD, Frick India Ltd; Vijit Madan

- Head Sales & Service, Thermo King (Climate

Solutions), India; Pankaj Mehta, Country Head

and Director, Carrier Transicold India; Deepak

Takkar, Vice President - Sales & Marketing and GM,

Emerson Climate Technologies (India) Ltd; Ranvir

Singh, IFS, Joint Secretary, WDRA, Government

of India; VR Khusro, DGM, NABARD; Dr Rakesh

Gupta, General Manager, Punjab National Bank;

and, Dr C Prabhu, Partner, Rabo Equity Advisors,

New Delhi.

Vinod Nautiyal, Chairman and Managing Director,

EXPAN Logistic and other speakers from the

logistics industry, who attended the conclave,

were quite hopeful that the future is bright for

the logistics industry in India and it is perhaps an

opportune time to dive deep into certain specific

developments those in the pipeline as well as

those that must be focussed upon in the near future

which could potentially overhaul the way India

moves, stores and delivers.

Sudhanshu Pachisia, Co-Chairman, Task Force on

Logistics Management, PHD Chamber delivered

the formal Vote of Thanks and Dr Ranjeet Mehta,

Director, PHD Chamber concluded the conclave

with his concluding remarks.

Leading organisations both from the government

and private sector that sponsored this event were:

WDRA; Safexpress - Official Supply Chain Partner;

EXPAN; NABARD; Navigators Logistics Pvt Ltd;

Satkar Logistics - Lanyard Sponsor; MJ Logistics

- Delegate Kit Sponsor; Frick India Ltd; Crystal

Logistic Cool Chain Ltd; Centre for Continuing

Education (CCE) - UPES & ORIGO and the

media partners were Cargo Talk; Cargo Connect;

Logistics Times; Infra Log & Business of Agriculture.

EVENTS


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COVER

STORY

Agriculture

ServicesA Journey

from Farmto PlateBy Alankar Srivastava


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COVER

STORY

Ever wondered how much an average

Indian meal travels to get from farm

to plate? Believe you us; it is definitely

not as simple as it sounds! Rather it

is a fairly long and complex process,

encompassing a wide network of services working

at multiple levels simultaneously.

Once the food is processed, it is manufactured

and packaged. Post that, they enter an extensive

distribution network that brings products from the

manufacturer to various retail outlets spread across

the country.

The transportation, warehousing, cold storage,

retail outlets, etc are all vital segments, playing

crucial roles in the supply chain. Nowadays, even

perishable food can travel long distances with

quality intact, thanks to modern, high-speed

methods of transportation trucks, trains, and

planes and refrigeration and cold storage

network.

The extensive distribution networks have led to the

consumer being the king, who is spoilt for choices

when it comes to variety in food and fibre products.

Business of Agriculturetraces the journey of food

products from farm to plate, sneaking a peek into

each and every aspect of distribution and storage

network.

Warehousing: The Protector and

Guarantor

A scientific storage structure specially constructed

for the protection of the quantity and quality of


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stored products, warehouse plays a crucial role.

The products stored in warehouses are preserved

and protected against rodents, insects and pests.

They also ensure that the moisture and dampness

dont play spoilsport. Warehousing is an integrated

scheme of scientific storage, rural credit, price

stabilisation and market intelligence, and is

intended to supplement the efforts of cooperative

institutions.

Storage of produce is an important task. If the

crop grains are to be kept for longer time, they

should be safe from moisture, insects, rats and

micro-organisms. The fresh crops contain more

moisture. If freshly harvested grains are stored

without drying, they may get spoilt, thus losing their

germination capacity. Therefore, prior to storing

them, the grains should be properly dried in the sun

to reduce the moisture content. This also prevents

the attack by pests, bacteria and fungi. Farmers

store grains in jute bags or metallic bins. However,

large scale of storage is done in silos and granaries.

For storing large quantities of grains in big godowns,

specific chemical treatments are required.

According to global property consultancy Knight

Frank, Indias warehousing requirement was

expected to grow at an annual average rate of nine

percent to 1,439 million sq ft in 2019 from 919

million sq ft in 2014.

The India Logistics and Warehousing Report 2014

said that the governments renewed focus on

incentivising the manufacturing sector will boost

growth of warehousing. The logistics market will

reap the benefits of this growth in the coming

years. Additional demand for warehousing space

per year will be around 104 million sq ft till 2015,

and will entail investments of about `15,000-16,000

crore every year, the agency estimated.

The investments will go towards land acquisition

and cost of construction. Investment in warehouse

can provide an opportunity of realising returns in

the range of 12-20 percent per annum to investors

willing to explore this sector, the report said.

The Central Sales Tax structure is forcing

companies to locate warehouses in all the states

they operate in, which leads to an inefficient

supply chain. Introducing the Goods and Services

Tax (GST) will streamline the taxation procedure,

creating an effective supply chain. Its high time

that the government introduces GST, so that the

COVER

STORY


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operation of the warehousing sector is streamlined

without further delay.

Some of the logistics companies with a presence in

the warehousing industry include Allcargo Logistics

Ltd, Gateway Distriparks Ltd, Transport Corp of

India Ltd, Gati Ltd, Sical Logistics Ltd and ContainerCorp of India Ltd.

Important Functions of Warehouses

Scientific Storage:Here, huge quantities of

agricultural commodities are stored. Various

methods of preservation are implemented, so that

the product is protected against quantitative and

qualitative losses.

Financing:It goes without saying that financing

holds the key to warehouse management. They

must meet the financial needs of the person

who stores the product. Nationalised banks,

especially National Bank for Agriculture and Rural

Development (NABARD) and others advance

credit on the security of the warehouse receipt

issued for the stored products to the extent of 75

to 80 percent of their value.

Price Stabilisation: By checking the tendency

to making post-harvest sales among the farmers,

warehouses help in price stabilisation of agricultural

commodities. Farmers can store their products in

warehouses during the post-harvest season, when

prices are low and sell it once they are assured of

good returns on their products. Warehouses even

inform farmers about the current market prices,

thereby preventing distress sales and apprise

them about the emergence of favourable market

conditions, so that they get the best value for their

product.

Today, there is a greater demand for advanced

and comprehensive warehousing services in India.

Two factors that have comprehensively spiked this

demand are the development of organised retail in

India and the growth of the manufacturing sector.

In order to make the most of the opportunities,

the private sector of the warehousing market must

get its act together and reorganise itself. According

to an industry report by the Associated Chambers

of Commerce and Industry in India (ASSOCHAM),

India is short of 10 million tonnes of cold storage

capacity, resulting in the wastage of over 30 percent

of agricultural produce every year.

Warehousing infrastructure developments will

also receive a thrust from the improvements in

transport modes. Property developers, who have

identified significant opportunities in warehousingin India, are planning to build warehouses. All

these developments will enhance the availability of

warehousing services in the country.

Transportation: A Transformation in the

Making

When it comes to transportation, India is largely

dependent on road and rail networks. However,

the recent decision of the Food Corporation of

India (FCI) to move food grains through the sea

route from Kakinada to Kochi could alter the whole

dynamics of the transportation network. The

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STORY


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government has already approved the container

movement of 20,000 MTs of rice per month from

Kakinada to Kochi. The decision to utilise sea routes

will go a long way in reducing bottlenecks in the

transportation network.

Cold Storage Facilities: Miles to Go

Due to the lack of adequate cold storage facilities

and refrigerated transport, India is throwing away

fresh produce worth billions every year. Currently,

India does not have a comprehensive cold chain

network, which is estimated to grow to `32,000 cr

by 2015.

During the past decade, there has been a

tremendous growth in the production of

horticulture produce, dairy products, and meat

products. There has been an urgent need for

creation of a cold chain network, which is crucial

for longevity of perishable food commodities.

A well-integrated cold chain network will improve

supply chains and reduce losses during produce

handling and movement to a large extent.

A vast network of cold storage issine qua nonfor

dealing with the long-term storage of potatoes,

onions and high value crops like apples, grapes

and flowers. Potato cold storages used to

contribute 88 percent storage capacity till the year

2000. Nowadays, new cold storages are being

constructed as multipurpose facilities focussing on

all fruits and vegetables, poultry, dairy and FMCG

product categories.

With more than 3,500 companies in the whole

value system, the Indian cold chain market is highly

fragmented. Cold storage solutions comprise about

85 percent of the Indian cold chain market by

value, and the balance 15 percent is contributed by

transportation.

There are various standalone, integrated companies

and 3PL service providers offering cold storage

and transportation solutions to various food

companies. The fact of the matter is that the cold

chain business in India is a lucrative proposition for

foreign investors due to high growth prospects for

the food processing sector, along with attractive

government incentives.

Marketing and Pricing: Aiming for High

Profits

Similar to the process of production, the pricing

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STORY


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and marketing of agricultural commodities is

instrumental in maximising profits. Successive

governments have stressed the development of

physical markets, on farm and off farm storage

structures, facilities for standardisation and grading,

packaging and transportation through different Five

Year Plans.

The damage caused by pest infestations leads to

a reduction in market value, depending upon the

extent of damage. Most agricultural commodity

markets usually function under the demand and

supply mechanism. The government also fixes

minimum support prices or statutory prices for

certain crops in order to protect the interests

of farmers, and encourage them to increase

production. If the price of these commodities falls

below the support limit, the government arranges

to buy these crops.

The government supports organised marketing of

agricultural products through a system of regulated

markets in India. These physical markets are meant

to make sure that farmers get reasonable profits

by creating an atmosphere of fair play. This fairness

is with regard to the forces of supply and demand,

regulation of market practices and transparency in

transactions.

Most State Governments and Union Territories

have enacted legislations like the Agricultural

Produce Marketing Committee Act to provide for

regulation of agricultural produce markets. This

leads to an efficient system of buying and selling of

agricultural commodities. The mechanism ensures

a reasonable amount of profits to agriculturalists for

their crops and other agricultural products.

Basic facilities such as internal roads, boundary

walls, electric lights, loading and unloading facilities,

and weighing equipment are available at more than

80 percent of the markets. Auction platforms,

drying yards and more and more cold storage units

are very much in the offing.


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The Way Forward

India is an agricultural country, which remains

the mainstay of the economy. Commercialising

agricultural production is the need of the hour.

Fortunately, production and distribution of food is

finally getting the attention it deserves.

Gone are the days when agricultural marketing

was all about the farmer selling his products to the

consumer on a cash or barter basis. The journey

of food from farm to plate has undergone rapid

transformation. In fact, it has to undergo a series of

exchanges or transfers from one person to another

before it reaches the consumer.

There are three marketing functions: assembling,

preparation for consumption and distribution.

Selling the agricultural produce depends on the

demand of the product at that time, storage

infrastructure, etc. The products may be sold

directly in the market, or stored locally for the time

being. Moreover, it may be sold as it is gathered

from the field or it may be cleaned, graded and

processed by the farmer or the merchant of the

village.

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Processing depends on the demand and quality

of the product. The task of a distribution system

is to match the supply with the existing demand.

Agricultural products in India are mostly sold by

farmers in the private sector to moneylenders/

village traders. Products can be sold at a weekly

village market. They are even sold at irregularlyheld markets.

Central government organisations like Commission

of Agricultural Costs and Prices, Food Corporation

of India, Cotton Corporation of India, Jute

Corporation of India, etc. are involved in

agricultural marketing. There are also specialised

marketing bodies for rubber, tea, coffee, tobacco,

spices and vegetables.

Agricultural production is much more than a

commercial activity. Rather it is a part of Indian

tradition. Marketing and allied commercial activities

associated with agriculture must be infused with

fresh perspectives. The value added services needs

to be further augmented, and policymakers should

set their priorities right.

Its time the Indian agricultural sector realises its

potential. Agriculture services are not only revenue

generating sector; it can also provide employment

that the country teeming with billions needs.

Ants employed to defend African mangoes

African farmers could effectively control fruit fly damage to citrus fruit, cashew and cocoa crops by

using the weaver ant as a method of biological control, according to researchers.

Paul Van Mele and colleagues published their work in the edition of the Journal of Economic

Entomology. The weaver ant, Oecophylla longinoda commonly found in Africa, Asia and Australia

preys on fruit flies and is already used in several Asian countries and Australia to protect citrus and

other fruits from fruit fly damage.

Fruit fly damage has a large economic impact on African farmers. As pesticides are often too expensive,

they harvest fruit before it matures to prevent damage, but an estimated 40 per cent is still lost. The

European Union and the United States have banned imports of West African mangoes due to fruit fly

damage. Van Mele and colleagues conducted a study in Benin to assess whether mango plantations

containing weaver ants had less fruit fly infestation than those with few or no ants.


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Agri-finance InstitutionsMajor Players inAgribusiness Development

In this current scenario of globalisation and

market-based economy, agriculture needs

reorganisation from a socialist venture to

a profit making venture. Agriculture is the

backbone of the Indian economy. I dont find

any disadvantage if Indian government focusses on

agriculture upliftment and making it result-oriented.However, it needs proper functioning and long-

term planning.

Agriculture is the largest employer to the Indian

population; around 51 percent of the workforce

is engaged in agriculture and other agro-based

services. It contributes around 17 percent to

the GDP. Major Indian industries like textiles,

sugar, food processing and guar gum, fisheries,

animal husbandry, dairy, etc, are totally based on

agriculture. Agriculture also provides employment

opportunities for other service industries like

transportation, foreign trade services, etc.

India has the gift from God of favourable climatic

conditions where crops can be grown throughoutthe year. But still Indian agriculture faces a lot

of problems. As there is no proper storage

infrastructure, there is a 17 percent post-harvest

loss in agriculture produce and in the case of fruit

and vegetable, this loss is 30 percent. All this costs

`250,000 crores annually, to India. On the other

hand, farmers do not get good prices for their

produce. Due to urbanisation, agricultural land is

also shrinking day-by-day.

By Ganesh Prajapat


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All these problems, we can say, are associated with

lack of long term policies and proper financing

in the agriculture sector. Central as well as State

governments needs to work on long-term concrete

steps. The scope of agribusiness is very broad

as it covers all major rural activities and further

processing of agricultural products. Agribusiness

can be a profit making industry with right

intervention of financial services. Agribusiness needs

huge financial support to modernise it. The farm

operations and allied activities like dairy, poultry,

floriculture, fishing, horticulture, bee keeping,

food processing, transportation and others, need

modernisation and automation.

Currently, NABARD is the umbrella organisation

for finance and assistance in agriculture. In addition,

nationalised banks, co-operative banks and private

banks provide financing services, under NABARD

guidelines. Non institutional agriculture finance also

plays a major role, especially for those who do not

have anything as collateral to get finance, especially

small farmers and entrepreneurs.

In broad terms, financial services can play three

major roles.

Corrective Roles: Making long-term policies and

planning for correcting existing gaps in agribusiness

or taking corrective steps to make good of loss

making activities. In the existing government backed

system, farmers/entrepreneurs avail of subsidies to

start a venture, but the venture does not end up

profitable. Therefore, financial institutes can take

corrective steps and can guide them towards profit.

Supportive Roles: Farmers/entrepreneurs, while

starting a venture, put in a lot of hard work but

they need proper financial support to run the

venture smoothly. For example, if a person is

involved in dairy farming using manual methods,

it is a time consuming process. In these types of

ventures, financial institutes can assist these players

by providing them proper technical and financial

assistance, so that they can be more profitable and

result-oriented.

Innovative Roles: This is the most crucial role;

financial institutes can play toward innovation or

introduction of new technology among players.

Every year, scientists and research institutes in

India do a lot of research but these researches do

not channelize to the farm within the timeframe.

Financial institutes can promote new activities and

technology with the help of their plans and support.

Activities Which Need Financial

Assistance

Training:Manpower needs to be trained as per

current market requirements, quality standards and

latest technology, to make a venture profitable to

agriculture.

The scope of

agribusiness

is very broad

as it covers all

major rural

activities

and further

processing ofagricultural

products

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the first step towards success. Financial institutions

should select a beneficiary on the basis of his age,

educational skill, technical skills, economic level,

and social and political environment of proposed

project location.

Economical Viability of Project:Financial

institutions should check economic viability of the

projects. Projects with no economic viability must

not be funded.

Training:Financial institutions should have sample

projects, so that they can provide proper practical

training to a selected beneficiary. If the beneficiary

is not comfortable with the given project then he

should be given options for another project. Without

successful completion of academic and practical

training, the project should not be sanctioned.

Land Bank:Financial institutions should have

their own land banks to develop agro-based

small units. These land banks should have all the

necessary facilities like communication, storage,

transportation, electricity, water and connectivity. It

would be easy to monitor projects and assist them

in a more professional way.

In-house Technical Team of Subject Matter

Specialist:Entire sanction projects must be

approved by the in-house team. A project should

not be approved without approval of a technical

team. Like for financing a dairy project, cattle must

be approved by in-house veterinary doctors and

animal husbandry experts.

Team of Technical Experts for Execution: The

project must be executed by a beneficiary underclose supervision of a technical experts team. A

team must ensure that the project is going as per

plan and there are no chances of failure.

Instalment based Finance: Projects should not

be financed one time; a complete project should

be divided into different steps. Every step must be

financed after completion of previous steps. For

example, if someone is going for a processing unit,

the first step is to acquire land; the second is to set

up a building; the third step is to avail basic facilities;

the fourth step is installation of machinery; the fifth

is to get manpower; the sixth step can be operation

and so on. It means there must be a clear chain,

connecting each step.

Regular Monitoring of Existing Projects: There

must be a monthly review of existing projects. The

team should check if these are going as per the

given plan. If there is a problem, it should be solved

through a prompt response team.

Marketing Support: Institutions should be linked

to buyers. There must be clear planning that final

produce will be purchased by the target buyers. If it

is used by other industries then it must be checked

that particular industry can purchase produce/

processed product. If produce is for retail sale then

there must be infrastructure to sell it.

External Audits: There should be external

independent audits from time-to-time, so that

institutions can get feedback of performance and

viability of projects.

Introduction of Latest Technology: Financial

institutions should have a hold on technical

knowledge in ventures. The institutions should

promote only those projects in which they have

strong technical expertise. Financial institutions

must have links with national and international

level academic and research institutes so that

there should be free flow of latest research and

technology.

There must be

clear planning

that final

produce will

be purchased

by the target

buyers

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Bids Adieu to TraditionalMarketing Techniques to

Harvest Gold from AgricultureBy Sameer Abbas

There is no denying the fact that

agriculture is the basic source of

food for billions, and farmers are the

basic food producers. But, most of

the time, these food producers are

forced to starve due to extreme financial losses in

crop production. Although, there are many factors

responsible for such losses, the absence of a concrete

marketing strategy is the key factor that hampers the

sales prospects of agricultural produce.

Marketing is one of the most crucial elements of a

business effecting sales and productivity. It involves

getting the right product at the right price, endorsed

using the right media and selling at the right place.

Its main motive in many businesses is to generate

more sales. In fact, marketing is the life blood of

every commercial activity. You have to use marketing

strategies to create product awareness. And, this

saying applied to agriculture segments as well.

Farmers in many developing nations are stuck

to old-fashioned farming as well as marketing

techniques. Time has come to revolutionise the

too-traditional agriculture segment.

Marketing, in agriculture, comprises all the

activities involved in the transformation of

commodities sold by farmers into food and fibre

products purchased by consumers. The most

evident feature of this transformation is a change

in physical appearance of the product. Form

changing activities for agricultural commodities

range from washing and grading apples to

processing wheat into Wheaties.

Another crucial marketing function is

transportation. Agricultural commodities must

somehow get from the farms where they are

INNOVATION


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grown to the retail outlets where they are bought,

and in some cases moving across a country or half-

way around the world. Time is another important

aspect of marketing. Many agricultural commodities

must be harvested at a specific time, but can be

stored for later use and in some cases be consumed

year-round. Finally, in a specialised economy, most

consumers are not producers. Marketing involves

the transfer of ownership or possession from

those individuals who produce, ultimately, to those

individuals who consume the food or utilise

the fibre.

The transformation of markets changes the value

of commodities. It changes their form, place, time,

and ownership as the commodities move through

the marketing system. These functions not only

create value but also add an associated cost. You

can achieve profit if the value added by different

marketing functions like processing, transportation,

storage, or brokerage, exceeds the costs of

performing those functions.

Marketing, to the majority of farmers, means

commodity marketing. Farmers produce wheat,

barley, rice, vegetables, pulses or other items.

Basmati rice offered by one farmer is pretty much

like any other farmers Basmati rice. The case is the

same with wheat and other agricultural produce.

Thus, the commodity, one farmer is offering, is

freely interchangeable with the commodity offered

for sale by other farmers. In fact, commodity

markets are highly competitive because there

are many buyers and sellers of the same basic

commodity. Price variations among various market

locations seldom exceed transportation costs and

price changes over time tend to reflect seasonal or

cyclical cost differences.

Commodity marketing decisions are basically

restricted to decisions of timing. Farmers can price

their commodities through reserved contracts or

futures markets, attempting to get a price higher

than market price at the time of delivery. Or they

can store commodities for later sale, hoping that

market prices will rise more than their costs of

storage. In either case, farmers are matching with

speculators, who make their living by buying,

Commodity

offered forsale by other

farmers. In

fact, commodity

markets

are highly

competitive

because there

are manybuyers and

sellers of the

same basic

commodity

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pricing, storing, or selling commodities. Most

conventional farmers are not particularly good

speculators. They make a living by keeping their

costs competitive and, thus, being able to stay in

business at competitive market prices.

Product marketing is different from commoditymarketing. Commodities are alike, but products

have different characteristics and marketing

values. These differences may be tangible in

nature (as in nutrient values of foods) or intangible

(as in consumer acceptance created by brand

advertising). Differentiation creates a more or less

unique market for a product, taking it out of direct

competition with other products.

Products may also be differentiated with respect

to time. Location is another factor which

differentiates the value of products. Farmers near

population centres have a distinct advantage in

most direct marketing strategies. Pick-your-own

fruit, vegetable, or berry farms, for example, must

be located within reasonable driving distance of

a significant population centre. Farmers markets

are also logical market outlets for producers of

fresh produce from a fairly limited geographic area.

Product handling and transportation technologies,

however, have reduced the significance of location,

either as an advantage or as an obstacle in

marketing.

What Could Be Creative Marketing

Strategies? Minimise middlemen profits by supplying

products directly to the place of final

consumption;

Adopt proper marketing and advertising

strategies to attract maximum buyers for yourproduce;

Try to minimise marketing cost by applying

innovative techniques to increase profit margin;

Harvest high-yielding crops;

Try to sell crops directly from the field to save

transportation and storage costs;

Try to diversify your potential markets;

Tell your story to potential customers;

Do market research; and,

Keep records to help you make decisions.

Reference sources: The Role of Marketing in Sustainable

Agriculture, John E. Ikerd

http://grassrootsresilience.wordpress.com/2012/02/15/adopt-

innovative-agricultural-practices/

Curbs on Onion Trade Leave Nashik Farmers in Tears

With a dejected expression, Narhari Nagri stood next to a truck laden with 20 quintal of onions. Having

travelled all the way from his village to auction his produce at Lasalgaon Mandi Asias largest wholesale

market for onions it was another disappointing day for Narhari. He had to be content with a selling

price hovering around `14-15 per kg, much lower than he had desired. That doesnt even cover the

costs, he pointed out in distress.

Onion cultivators in Maharashtra faced devastating losses this season due to crop damage by hailstorms.

Things had only just begun to improve when the Central government recently decided to include onion

in the essential commodities list.

The government purportedly took the step in a bid to check rising prices and clamp down on hoarding

by traders as they now cannot stock more than a prescribed quantity. It, however, hampered farmers

chances of recouping their losses as prices have fallen.

Sameer Abbas is a Freelance Business

Journalist.

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T

he Organic Industry will be a vibrant

sector in the years to come. What

we used to eat 100 years ago is now

termed as organic food. Indias

traditional farming system, agro-

climatic conditions, diversity in vegetation and

culture suits to organic farming.

Consumers are demanding healthy, nutritious,

safe, and natural food nowadays. Third Party

Certification as per regional or national and/or

private standards plays an important role to verify

safety of the products marketed as Organic. In

the era of mall culture and consumerist world, one

must see products labelled as certified before

purchase. Each labelled product must contain

a tracking and traceability number, followed by

reference to organic production method. This

will help consumers to track the product back

to its source and also to investigate or take

corrective actions if the product does not meet

their requirement. Time has come that conscious

consumers must change their shopping habits due

to food safety concerns. Brand name or higher

price alone may not be a direct indication of

safer food.

Certification Body (CB) accredited by National

Accreditation Board (NAB), Government of India,

offers third party certification in our country. CB

Organic Certification: Smarter Wayto Market Agriculture Products

By Narayana Upadhyaya

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certification activities are monitored and regulated

by NAB. CB offers certification as per Indias

National Organic Standard and takes responsibility

to guarantee consumers about the safety of the

products they certify.

An organic certification label has positive meaning

to the consumer with respect to food safety and

conservation of vital natural resources like water,

soil and bio-diversity. Third party certification also

ensures sustainability of farming systems, ecology

and economics of the farmers. It also ensures

integrity of organic products at every stage of the

food supply chain (starting from farm to shelf).

Recent statistics shows that $63 billion worth

certified products transacted in the international

market and Indian contribution was found to be

only 0.35 percent. We, as a country, need to be

always aware of international/domestic demand

for quality food and utilise our natural resources

accordingly rather than supply what is available.

Taste excellence and environmental sustainability

can go hand-in-hand.

Farmers in India, from the supply side, have a

great opportunity and can market healthy produce

by opting for third party certification. Organic

certification improves the market linkage, helps

to understand the cost of production and gives

importance to family farming systems. It also

addresses the problem of soil degradation which

leads to fall in productivity. Organic farming is

comparatively less risky compared to conventional

farming.

Organic certification certainly gives unique

marketable opportunity for a processor or a

trader in domestic as well as international markets.

Certified raw ingredients or processed products,

marketed with organic certification, fetch better

price for keeping the products healthy and for

An organic

certification

label has

positive

meaning to

the consumer

with respect to

food safety and

conservation

of vital naturalresources like

water, soil and

bio-diversity

TECHNOLOG

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taking due care from farming to final destination.

Certification guarantees that the processor/trader

kept the organic integrity of the products at every

stage of processing. Past statistics shows that out of

total organic products exported from India covers:

Fruits/Vegetables 30 percent;

Dairy Product 15 percent;

Grains/Pulses 5 percent;

Spices 10 percent;

Processed Products 33 percent;

Non Food Items 7 percent (which includes

textile and cosmetic items).

The major organic products exported from India

are tea, basmati rice, soybeans, sugar, mangoes

(in processed form) and spices. Indian cuisines

are enjoyed by many in the international market,

nowadays. Innovative products and super grains like

flax seeds, grain amaranths (which are nutritionally

dense or rich) are highly in demand in US/EU

markets. Organic certification helps in telling the

story of certified products to the consumers.

Organic and allied certificates promote the

sustainability approach in food business.

Certifications take into consideration issues like

climate change, carbon neutral, water neutral,

energy saving, bio-diversity etc. One needs to have

clear planning of production/processing techniques

which must be in compliance with the applicable

standards. All activities must be tightly controlled by

trained people and show continuous improvement

in every aspect to produce healthy and safe food

by respecting natural resources. By opting organic

certification, you can tackle the problem of cross

contamination, chemical residues and adulteration

of food. Every household must consume organic

products, which is the right of every citizen in India.

Modern processing techniques, which are approved

as per organic regulations/standards, can help in the

growth of Ayurvedic and food supplement products

market.

Narayana Upadhyaya, Aditi Organic

Certifications Pvt Ltd, Bengaluru.

The major

organic

products

exported from

India are tea,

basmati rice,

soybeans,

sugar, mangoes

(in processed

form) and

spices

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Nematode and Soil FungalBiological Control Solutions

The Nico Orgo Viewpoint

Nematodes are a diverse animal

phylum inhabiting a very broad

range of environments. They

are ubiquitous in all habitats that

provide available organic carbon

sources. They are the planets most abundant

metazoa. They range in reproductive potential from

explosive opportunists to conservative survivalists.

Because they are transparent, their diagnostic

internal features can be seen without dissection.

They can, therefore, be identified without

biochemical procedures. They also contribute to

a variety of functions within the soil system. As

in agricultural systems, nematodes can enhance

nutrient mineralization and act as biological control

agents. They vary in sensitivity to pollutants and

environmental disturbance.

Nematode infestations belong to the major

stresses, affecting crop production worldwide.

The estimated annual yield losses go up to 12

percent due to plant parasitic nematodes in the

worlds major crops, points out Kartik Laijawala

director of Nico Orgo Company. He added, In

India alone, recent estimates show, nematodes are

responsible for both quantitative and qualitative

yield losses amounting to about $300 million per

year. Damages are especially big on crops like

banana, sweet potato and sugar beet.

Nematodes leave the plant of resistance and

synthetic nematicides indiscriminately destroy

beneficial soil fauna. Common fungal diseases in

soils also cause big damages. Fusarium, Pythium

and Rhizoctoniapose the greatest risk to healthy

By Kartik Laijawala

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Pseudomonas Fluorescens:A microbial agent

which protects roots against both fungi and

nematodes.

Paecilomyces Lilacinus is a parasitic fungus that

attracts the sedentary stages of nematodes. It

colonises nematode egg masses, severely affectingnematode populations. It destroys up to 90 percent

of eggs and 75-80 percent of egg masses.

Trichoderma Viride is one of the strongest

soil-borne fungal species, it is antagonistic to

several economically-important pathogens such

as rhizoctonia and fusarium. Additionally, it acts

as a bio fertiliser due to its ability to solubilise

phosphates in the soil and quickly decompose

organic matter. Mode of action of trichoderma

viride has the ability to colonise the surface of the

seed and kill the pathogens present on its surface.

However, it can protect the plant through its life

cycle through mycoparasitism and antibiosis.

roots and soils and, if not treated, it can even

cause complete failure in affected plants. Just like

nematodes, they exist out of sight, in the root zone

and so many farmers lack the necessary awareness

to combat them said Laijawala.

Chemical solutions exist but many are now unviablein terms of what they do to the environment and

human health. Methyl bromide and carbofuran

are all recognised toxic chemicals and banned in

several parts of the world. Laijawala states, Proper

solutions have been found with organic pest

control, botanical and biological alternatives. The

solutions need to be studied and barriers to entry

must be eased for quicker uptake. He describes

three useful bio-control agents:

Paecilomyces Lilacinus:A beneficial fungus

which controls several species of nematodes;

Trichoderma Viride:A beneficial fungus

antagonistic to fungal pathogens such as

fusarium, pythium, and rhizoctonia;

Trichoderma

Viride is

one of thestrongest soil-

borne fungal

species, it is

antagonistic

to several

economically-

important

pathogens suchas rhizoctonia

and fusarium

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Pseudomonas fluorescens is the superman of the

bacterial world! It acts as a nematicide, fungicide

and can also aid in growth promotion. It is non-

specific in its ability to protect plants and, once

established, it works against several different

pathogens while inducing systemic resistance in

the host plant. It produces secondary metaboliteswhich play an important role in plant disease

suppression. Pseudomonas fluorescens aggressively

colonises the roots of the crop and suppresses

disease by inhibiting phytopathogens in the soil or

on the roots by competition.

According to Laijawala, there are several advantages

of using these three biological agents, the first

being eco friendly: zero residual toxicity and

total degradability. They are non toxic to humans,

animals, plants and predators of insects. These two

biological agents can be used at all stages of crops.

They promote plant growth and do not lead to

development of resistance in plant pathogens. Some

of them, such as Trichoderma Viride, have also

an effect to help nutrient uptake. Formulated as

living products, these biological agents need some

precautions; they must be applied during evening

hours (cooler temperature), and if conditions are

dry, the field should be irrigated before application.

Chemical fertilisers and insecticides should not be

sprayed 5-7 days before or after, for best results.

Also, these biological products need to be stored in

a cool place away from direct light and heat. Since

these products work primarily in the soil, they are

considered effective on most crops, ranging from

fruits and vegetables, to plantation and ornamentals.

They can also be used for landscapes, forestry, turf

management and home gardening, which means, a

wide range of possibilities in the future.

Mangalore Farmers to get Huge Subsidy

The Horticulture Department will offer subsidy for farmers in Mangalore to introduce drip and

sprinkler irrigation systems for horticulture crops on up to five hectares (ha) of land in its efforts to

conserve water as well as to improve the yield.

While 90 percent subsidy will be offered up to two ha, 50 percent subsidy will be offered to the next

three ha to all farmers in the district, said an official release.

The subsidy would be provided to horticulture crops except coffee, tea and rubber. Fertigation, the

process through which fertiliser is mixed in water before being dispensed to plants, was compulsory

and part of the drip irrigation system, the department said. It said the fertigation would ensure

availability of nutrients to plants without any wastage, and would also save expenditure on fertiliser by

20 to 40 percent, and the cost on labour and electricity.

Kartik Laijawala is a Partner with Nico

Orgo Manure.

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Agriculture is the backbone of Indian

economy and plays the most

decisive role in the socioeconomic

development of the country.

Agriculture in India is a miscellaneous

and extensive sector that caters to a large

number of actors. India has one of the largest and

institutionally most complex agricultural research

systems in the world. The agricultural research

system in India includes around 27,500 scientists

and more than one lakh supporting staff, actively

engaged in agricultural research. Historically, the

Indian agricultural research system is the pinnacle

of a process which started in the 19th century and

resulted in the establishment of Imperial (now

Indian) Council of Agricultural Research (ICAR) on

the recommendation of a Royal Commission on

Agriculture in 1929. In the current research system,

the ICAR at national level mainly aids, promotes

and coordinates research and education activities in

the country.

Agricultural Research in Post-

Independence India

In 1948, there were only 17 agricultural colleges

in the country. It shows that before independence,

higher education in agriculture was almost

ignored. Since Independence, there has been a

substantial growth in the National Agricultural

Research System (NARS). During 1948-49, the

University Education Commission headed by Dr S

Radhakrishnan, suggested that the country should

focus on the establishment of rural universities.

Major HS Singh and AN Jha (Chief Secretary and

Development Commissioner, UP) visited Land-

Grant Universities of the United States in 1950 and,

advised to set up such a university in Uttar Pradesh

(UP). This event may be regarded as the one, which

Agricultural Researchin India: Evolution andDevelopment

R&D

By Aamir H Kaki


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led to the initiation of agricultural universities in the

country. In 1955, the first Joint Indo-American Team

was set up, which suggested the founding of rural

universities in each of the States in India.

In the year 1956, a draft for agricultural universities

was prepared and this provided the root for theproposal by Government of UP to the Central

Government for starting an agricultural university

near Rudrapur in the tarai region of UP. In the year

1959, the second Joint Indo-American Team was

set up. The team submitted its report in 1960. The

team suggested that the agricultural universities

should be autonomous; consist of colleges of

agriculture like veterinary, animal husbandry, home

science, technology, and basic sciences under them;

have inter-disciplinary teaching programmes; and

integrate teaching research extension.

The first State Agriculture University (SAU)

was established in 1960 at Pantnagar in UP. The

SAUs were given autonomous status and direct

funding from the state governments. They

were autonomous organisations with state-

wide responsibility for agricultural research,

education and training or extension education.

The establishment of the SAUs, based on a pattern

similar to that of the Land-Grant Universities in the

United States, was a landmark in reorganising and

strengthening the agricultural education system

in India. These universities became the branches

of research under the ICAR and became the

partners of the NARS. The green revolution, with

its impressive socio-economic impact, witnessed

significant contributions from the SAUs, both in

terms of trained, scientific workforce and the

generation of new technologies.

Role of Institutions in Agriculture

Research

The SAUs are the major partners in growth and

development of agricultural research and education

under the NARS. All the major states have at least

one SAU, and most of the SAUs are multi-campus

universities. A large number of non-agricultural

universities, government organisations and public

sector undertakings are also involved directly or

indirectly in agricultural research. Some universities,

like Banaras Hindu University, have independent

faculty for agricultural research and education,

while government departments or scientific

organisations - like the Department of Science and

Technology (DST), Department of Biotechnology

(DBT), Council of Scientific and Industrial Research

(CSIR), Department of Research and Development

Organisation (DRDO), etc - conduct or support

agricultural research directly or indirectly.

The ICAR as an apex body coordinates research

and promotes inter-institutional research linkages.

Since the ICAR supports SAUs through regular

grants, it has direct participation in the management

of the SAUs. In addition, regional committees were

formed in 1975 to assess the status of research,

extension and education in the ICAR institutes

and the SAUs in the eight regions of the country.

These committees also make recommendations

to undertake research on immediate problems of

a region. Officials from the ICAR, ICAR institutes,

SAUs, State Line Department, Non-Governmental

Organisations (NGOs), members of parliament

and farmers representatives are members of these

committees.

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After Independence, agricultural research was

given much emphasis which in turn led to increased

agricultural production and near self-sufficiency in

food grains in the country. The greater emphasis

given to the agricultural research could be

established by the fact that the system guided by

the ICAR now has:

49 ICAR institutes;

17 National Research Centers;

Six Bureaux;

25 project directorates;

79 All India Coordinated Research Projects and

AINPs;

607 Krishi Vigyan Kendras;

52 State Agricultural Universities;

One Central Agricultural University;

Four Central Universities having Faculty of

Agriculture.

In addition, some other organisations are involved

in agricultural research:

About 23 traditional universities are carrying out

agricultural research;

Scientific organisations such as the Council of

Scientific and Industrial Research (CSIR), and

Bhabha Atomic Research Centre (BARC);

Government departments such as the

Department of Science and Technology and the

Department of Bio-technology;

Private and voluntary organisations;

Scientific societies and institutions like the

National Dairy Development Board which has

been instrumental in transforming the dairy

industry for rural development.

To Conclude

Agricultural research in India has an interesting

history regarding its growth and development.

It started during the colonial era and today the

agricultural research system is probably the largest

research system in the world. In the current

scenario, the ICAR at the national level mainly aids,

promotes and coordinates research and education

activities throughout the country. The research and

education responsibilities at the state level rest with

the SAUs.

In addition to these main streams of research, some

general universities and other agencies like scientific

organisations related to agriculture, government

departments, voluntary organisations, private

institutions etc, participate in the nations research

efforts. The role of NARS in the development of

agricultural research is of great importance within

which all these organisations come.

References: History of agricultural research in India by

Anwesha Borthakur and Pardeep Singh

International Journal of Social Science & Interdisciplinary

Research

Voice of Research

Agricultural

research in

India has an

interestinghistory

regarding its

growth and

development. It

started during

the colonial

era and today

the agriculturalresearch system

is probably the

largest research

system in the

world

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Farmer to

Consumer Initiative

SOCIALENTREPRENEUR

For years, in India, there is a set path

for agriculture produce to reach the

consumer. It is through the Agricultural

Produce Market Committee (APMC),

a marketing board established by state

governments of India. In order to facilitate farmers

to sell their produce and get reasonable prices,

APMCs are created in many towns, where farmers

can sell their produce under the supervision

of APMC. Farmers cannot sell their produce

outside this APMC mechanism. This makes them

vulnerable to traders and marketing agents price

manipulations.

If we study the past history of India since

Independance, we will learn the facts that neither

farmer nor consumer have benefitted from

this established mechanism. The farmers were

Business of Agriculture| September-October 201442

By Mandar R Walawalkar


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compelled to sell their produce to the APMCs

spread across the country and directly or indirectly

the traders and marketing agents used to decide

the price of the produce. The result is obvious;

neither the farmer nor the consumer can control

the prices and in bargain though, the consumers

were and are paying higher prices year-by-year.An out-of-the-box solution is required to change

this situation and then the concept of reaching the

consumer directly needs to be explored.

Farmer to Consumer

Due to rapid urbanisation, land prices are

skyrocketing and due to high input cost, the

agriculture business is getting costlier day-by-day,

thus, leading the farmers to quit this unprofitable

profession. Even the farmers children are

not getting into this high input and low return

(assumed) profession. Rather, they are preferring

to work in corporate offices, at any level and salary.

The situation is alarming for agribusiness.

experiment, the government changed APMC rules

to allow the farmers to sell their produce directly

to urban consumers.

In the context of the above, we need to understand

the Farmer-to-Consumer initiative. The SWOT

analysis of the initiative needs to be done with a

To change this scenerio, the concept of group

farming was introduced by some socially active

visionaries in the agriculture sector. Through

this, input and labour costs could be saved to a

great extent. But still, getting fair a price for their

produce was a dream for the farmers. Therefore,

the need of maximising the returns sproutedthe concept of reaching the consumer directly,

avoiding the set APMC route. In Maharashtra, on

experimental basis, some farmer groups were

allowed to sell their produce mainly vegetables

and dairy products directly to consumers in

Pune. The results were encouraging both for the

farmers and consumers. On the basis of the same

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free mind to evolve the system and make it more

rewarding for both the beneficiaries farmer and

consumer.

The Advantages

As the name suggests, farmers can reach their

consumers directly, thus creating a bonding effect.

This can lay a strong foundation for the long

relationship ahead. This initiative reduces the final

cost of produce for the consumers, and at the same

time, it increases the output for farmers due to

a reduced number of mediators such as traders,

wholesalers and retailers, and their profit margins.

The benefits of reduced pricing and higher returns

can be enjoyed simultaneously. This is the USP of

this initiative. The initiative is creating a win-win

situation for both the parties which normally is

difficult to achieve in any such process.

Due to less handling, quality of produce can be

maintained. As time is also saved in repetitive

loading and unloading at traders, wholesalers

and retailers ends, this helps in maintaining the

freshness of the produce.

As the learned and health conscious consumers

in the urban areas wish to know more about the

origin of the produce they consume, this initiative

gives them the satisfaction of getting the produce

from the right source instead of blindly buying from

roadside vendors. The produce harvested in not

so fertile land treated with high doses of fertilisers,

or with contaminated water in highly polluted

environments, can cause health issues.

When implemented in a group, this initiative

opens up different avenues and helps in generating

direct or indirect employment opportunities in

the villages, such as loaders/unloaders, grading,

packaging, transport, quality control, delivery

person, marketing, counter sales, exhibitors,

planners, telecallers, customer service executives

and many more.

The Shortfalls

The biggest weakness of this initiative is feared to

be:, if the farmers do the marketing, their focus on

farming will shift from farming to marketing. Though,

there is a valid point in it, it can be overcome by

group activities and rotation of responsibilities.

It is very difficult for marginal or for that matter

individual farmers to implement this initiative as it

becomes very expensive in reaching the customer.

The answer is group activity which will create unity

among like-minded farmers and it is a known fact

that unity is the first step in solving any community

issues and progressing towards a common goal.

It is also feared that, due to this initiative small

retailers will loose their business. However, it is

not true. There is enough business for everyone as

this is a day-to-day and most essentially required

business. Due to the increased competition

between retailers and farmers reaching consumers

directly, both entities will have to be on their toes

in maintain the quality standards, service and most

importantly pricing. In the bargain, the consumer

will have the choice of better alternatives.

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Agricultural Disaster Declared for Hawaii County

Federal disaster loans and other assistance will be available for farmers who suffered losses in Hawai

County from the wind, rain, and flooding from Tropical Storm iselle. Hawaii County has been designated

a primary natural disaster area by the US Department of Agriculture, according to members of Hawaiis

congressional declaration.

Agriculture Secretary Thomas Vilsack declared an agricultural disaster after examining loss reports and

determining that agricultural production losses from the storm met eligibility requirements. Hawaii County

farmers have eight months to apply for disaster loans. Preliminary assessments show papaya farmers suffered

more than $50 million in damage and losses from the storm.

In India, we

have ample

requirements

of agriculture-

basedcommodities.

A country

with 125 crore

consumers and

increasing, will

never face out

of business

situations. Thiswill give the

assurance to

the farmers

about the

assured sale of

their produce

The Road Ahead

In India, we have ample requirements of

agriculture-based commodities. A country with 125

crore consumers and increasing, will never face out

of business situations. This will give the assurance to

the farmers about the assured sale of their produce.

The need of the hour is to reach the target

audience with quality, fair pricing and on time.

Possible Pot Holes in the Road Ahead

The base of this initiative is a strong like-minded

farmer group. They are bound together with a

common goal of reducing the input and maximising

the output. There is an internal supply chain

working in the background. The entire mechanism

of this initiative works as a perfect machine.

Malfunction of any one part of this mechanism can

hamper the entire machine in producing the desired

output. In any machine, wear and tear is normal

and can be overcome with regular cleaning, oiling,

greasing and servicing. Periodic overhauling ensures

smooth functioning of the machine. Likewise, even

the human group work mechanism is required

with counselling, training, motivation, rotation

in responsibilities etc, for smooth functioning. A

strong leader is required to do all such training

and motivation to keep the group progressing. It

mostly depends on the leader as to how the group

becomes successful and prospers in life. Any leader

getting off the track due to personal egos, political

or external pressure, or any other reason can very

well negatively influence the groups performance.

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All issues among the group members needs to be

handled sensitively. The young memb

Documents

BOA Sept Oct