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Helping farmers move from subsistence to commercial
agriculture
March 18, 2013
1
Table of contents
I. Overview on role of marginal farmersII. Strategies to move from subsistence to commercial farming
A. Promoting mix farming1. BAIF2. Syngenta Foundation India3. BASIX KRISHI
B. Improving productivity1. TATA Kisan Sansar2. ITC eChoupal3. Bayer Rural Service Centres4. Syngenta Foundation India5. PRADAN
C. Linking farmers to markets1. Rallis More Pulses2. RUDI3. Syngenta Foundation India
2
I. Overview on role of marginal farmers
3
In India, there are about 92 million marginal farmers with under one hectare, representing over 67% of all agricultural holdings
Number of operational holdings
Marginal Below 0.5 ha to
1.0 ha
Small1.0 ha – 2.0 ha
Semi-medium2.0 ha to 4.0 ha
Medium4.0 ha to 10.0 ha
Large10 ha and above
Farmer group
2000-01 2005-06 2010-11
0 10000 20000 30000 40000 - 20,000 40,000 60,000 80,000 100,000
67%
18%
10%
4%
1%
Percentage of operational holdings / area by farmer group in 2010-11
22%
22%
24%
21%
11%
Source: Agriculture Census, 2010-11
Area by operational holdings
4
While the number of holdings by small, medium and large farmers has remained relatively constant, the number of holdings by marginal farmers has grown from 35 million to 90 million between 1970 and 2010.
1970-71 1976-77 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
MarginalSmallSemi_MediumMediumLarge
Source: Agriculture Census 2010 -11, Department of Agriculture and Co-operation Ministry of Agriculture, Government of India
Number of operational holdings in India (in 000)
5
About 97% of marginal farmers in India are concentrated in 16 states which represent 96% of land under cultivation by marginal farmers
6 - 5,000 10,000 15,000 20,000
Uttar Pradesh
Bihar
Andhra Pradesh
Maharashtra
Kerala
Tamil Nadu
West Bengal
Madhya Pradesh
Karnataka
Odisha
Rajasthan
Chhattisgarh
Jharkhand
Assam
Gujarat
Jammu & Kashmir
Source: Agriculture Census 2010 -11, Department of Agriculture and Co-operation Ministry of Agriculture, Government of India
Number of marginal farmers (‘000) Area (‘000 ha)
- 2,000 4,000 6,000 8,000
Marginal farmers, with under one hectare, normally rely on subsistence agriculture to feed their families, and lack access to inputs, technology, information and finance.
Lack of information
Lack of information on best time and place to sell their produce prevents farmers from effectively bargaining with traders for a better price
Improper application of
key inputs
The rising cost of fertilizer and agro-chemicals have made inputs difficult for small farmers to afford, leading to reduced application and substitution with cheaper inputs, reducing productivity and quality
Low application of modern technology
Very low adoption of irrigation schemes and cold-chain management systems
Low availability of capital and
credit
Inadequate credit for inputs and capital investments and high interests rates
Poor infrastructure
Limited collection, storage and processing facilities, underdeveloped rural road systems and lack of electricity
Small plot of land
Under one hectare
No other sources of
income
Non-farm activities non-existent or insufficient to rely on market purchases for adequate food intake
Source: Small Farmers in India: Challenges and Opportunities, S.Mahendra Dev. IGIDR, June 2012 7
Small and marginal farmers face many constraints in entering commercial agriculture in higher value commodities
Some marginal farmers may feel that their average landholding is too small to enable production of cash crops in addition to what farmers need to feed their families.
Poor access to capital, technology, inputs and information inhibits their participation in the production of high-value commodities
Most high value commodities are perishable, and therefore have greater production and market risks, which risk averse small farmers can be reluctant to bear
Their marketed surplus may be too small to be profitably traded in distant urban markets because of higher transport and other costs
Small and marginal farmers might be excluded from supply chains given their low volumes, the difficulty to comply with food safety standards and the high management costs associated to dealing with large number of small farmers
8
The majority of marginal farmers are women, from scheduled castes and tribes, with low levels of literacy and with dependence on moneylenders for financing
Role of women
In rural areas, about 83% of women are in agriculture vs. 67% of men. Despite their importance, women often are denied property rights and access to resources.
Social groups
The proportion of socially disadvantaged groups such as scheduled castes and scheduled tribes is higher among marginal and small farmers.
Education Literacy among male and female marginal farmers is 62.5% and 31.2%.
Credit and indebtedness
Small and marginal farmers rely on informal sources for 70 to 80% of their loans.
Source: Small Farmers in India: Challenges and Opportunities, S.Mahendra Dev. IGIDR, June 2012 9
Despite all the constraints, marginal and small holdings are as or more productive than larger farmers
Value of Output per Hectare (Rs. ‘000)
Note: All India includes small states Goa, Delhi, Pondicherry, North Eastern States & UTs. Source: Computed using NSS unit level data 59th Round on Situation Assessment Survey of Farmers 2003.
The contribution to output is higher for marginal and small farmers as compared to their share in area. The share of these farmers was 46.1% in land possessed but they contribute 51.2% to the total output of the country at all India level in 2002-03.
There are significant regional variations in productivity of marginal and small farmers. In ten states, marginal farmers contribute more than their portion of operational holdings. The contribution of small and marginal farmers to output ranges from 19% in Punjab to 86% in West Bengal.
Rajasthan
Orissa
Madhya Pradesh
Chhattisgarh
Karnataka
Gujarat
Himachal Pradesh
Maharashtra
Bihar
Jharkhand
Uttar Pradesh
Andhra Pradesh
Uttaranchal
Tamil Nadu
Haryana
Assam
West Bengal
Kerala
Jammu & Kashmir
Punjab
All India
0 5 10 15 20 25 30
Marginal Small Medium and large
10
Small farmers allocate a higher proportion of their land to high-value crops and make larger contribution to the production of high value crops, especially in vegetables
Percentage share of small and marginal farmers in production of selected commodities, 2003
Source: Chapter 2. Agricultural Diversification in India: Trends, Contributions to Growth, and Small Farmers’ Participation, Birthal, Joshi and Narayanan, 2011
Fruits, vegetables, and spices together occupy 5.7% of the total cropped area of small and marginal farmers, in contrast to 4.6% on medium farms and 3.0% on large farms.
Small and marginal farmers appear to have a comparative advantage in the production of some vegetables (rather than fruits) because vegetables require more labor and care, rather than capital. For small farmers, vegetables are more attractive because they have shorter gestation periods than orchard fruits, and generate more regular and rapid returns.
Veg-etables
Paddy Fruits Coarse Wheat Spices Pulses Milk0%
20%
40%
60%
80%
100%
70% 62% 55% 54% 52% 49% 32% 69%
Small and marginal Medium Large11
II. Strategies to move from subsistence to commercial farmingA. Promoting mix farmingB. Improving productivityC. Linking farmers to markets
12
Strategies to move from subsistence to commercial farming include promoting mixed farming models, improving productivity, linking farmers to markets and tailoring the solutions to specific geographies
Focus on mixed farming models for marginal farmers—rice, hybrid maize, fruits and vegetables, and/or livestock in all project areas—with package of practice and attention maintained on each.
Work with lead farmers, not NGOs, as the vehicles for providing technical services. Back demo plots and provide results oriented payments for increased productivity and sales of other farmers. Mobilize and deploy progressive farmers, agro-input dealers and agro-entrepreneurs—not NGOs—as the vehicles for disseminating good input use and modern farming practices. Focus all efforts on progressive marginal and small farmers, with one to two hectares—those who are likely to move on innovations and influence practice of others.
Promoting mixed
farming
Improving productivity
Linking farmers to markets
Mobilize agro-entrepreneurs to build producer groups and market linkages, in addition to lead farmers.
Adopt a mix of difficult and promising, remote and non-remote areas—and monitor results in each. Pick areas in which farmers have access to water or can get it, to get a second crop, emphasizing partnerships with specialized NGOs or companies which can address water harvesting, storage and irrigation.
Tailoring solutions to
specific geographies
A. Promoting mix farming1. BAIF2. Syngenta Foundation India3. BASIX KRISHI
14
BAIF is an NGO that supports sustainable livelihood approaches with poor farmers through programs focusing on water management, livestock and agri-horti-forestry as major income generating activities.
Program Gestation period Services provided Benefits Beneficiaries
Dairy develop-ment program
Three to four years, until the newly born calf comes into milk production
Breeding services to cows and buffaloes at the door steps of the farmers, using frozen semen of superior sires. Motivation, awareness about the benefits, regular follow up, technical guidance, timely health care, supply of critical inputs
A crossbred cow is able to contribute a net income of Rs.5000 per year
500,000 families
In land based develop-ment programs
Two to six years, depending on the type of farming systems practiced by the farmers
Community pasture and water resource development: dig trench cum mould for establishing live hedges, contour bunding, gully plugging, sowing of seeds of forage of legumes and grass species to enrich the quality of forage
The investment of Rs.10,000 per ha generates output worth Rs.6000-7000 per yearCropping intensity increased by 31-63% and crop yields by 40-80%
110,000 families
Arable crop production
Short, due to short rotation cropsFruit and tree crops take 5-6 years to generate income
Promotion of agri-horti-forestry through tree planting model. Drought tolerant fruit crops such as mango, cashew, tamarind, custard apple, on marginal or wastelands covering 0.4 to 1.0 ha. The interspace is used for cultivating arable crops.
Enhance crop yields by 50 to 100%. A family with 0.4 ha land is able to earn a net income of Rs.20,000 per year after 5-6 years
180,000 families
15
BAIF’s dairy development program generates Rs.6,700 per cow per year. The program is currently benefitting 500,000 Indian families
Parameters Local Cow Crossbred Cow Quantity Amount Quantity Amount
Income: Average milk production of 305 days (l) 200 1,600 2,200 17,600
Dung, farmyard manure (t/year) 3 1,800 5 3,000Total Income (Rs.) 3,400 20,600Expenses: Feed : Concentrate (Rs. 5/k) 250 1,250 1,100 5,500Dry Fodder (Rs.1.5/kg) 2100 3,150 2,000 3000Green Fodder (Rs.0.8/Kg) 400 320 1,000 800Vaccinations and Veterinary care 10 300Total Expenses (Rs.) 4,730 9,600Net Income (Rs.) (Excluding Labour Costs) -1,330 11,000National Labour Cost 2,500Breeding and other services 300Cost of growing stock 1,500Net Profit (Rs.) 6,700
Annual cost benefit details of crossbred cows
Gestation period Services provided
Three to four years, until the newly born calf comes into milk production
Breeding services to cows and buffaloes at the door steps of the farmers, using frozen semen of superior sires. Motivation, awareness about the benefits, regular follow up, technical guidance, timely health care, supply of critical inputs
16
Implementation of BAIF’s Goat Development Program allows goat keepers to earn between Rs.1,000 to 1,500 per head per annum
• Low capital investment
• Low cost of maintenance
• Short gestation period
• Growing demand for milk and meat
• Important traditional occupation for economically weaker sections of the society
• Goat population is the highest rate compared to any ruminant livestock species increased to 126M in 2008 from 47M in 1952
• Maintained predominantly under extensive range management on community range land
17
BAIF Goat Development Program is being implemented in 13 states, covering nearly 75% of the goat breeds in the country.
• Breed improvement through supply of bucks
• Nutritional improvement through supply of mineral mixture
• Preventive vaccination and deworming
• Increased social awareness
• Guidance for marketing of live animals
Services provided Advantages
• Organization of a group of 7 to 10 women owning 40 to 50 female goats who are encouraged to meet regularly for procurement of inputs, micro-credit, adoption of technologies and collective marketing to improve their income.
• Field officer supports 8 to 10 groups, through mentoring and dissemination of technologies and services.
Strategy
Particulars DetailsPlot size 0.05 haPlant Life 12 YearsPlants in 500 sq meters 200Income commences 6 months after plantationHarvesting interval DailyProduction costs—planting material, fertilizer, secator
Rs.3,500
Marketing costs—packaging, transport
Rs.500
Total costs Rs.4,000Average production per day 700 gramsAverage production per year 189 KgAvg gross income received in one year at Rs.160 / kg
Rs.30,240
Annual net income per farmer Rs.25,240
BAIF’s end to end program for jasmine cultivation generates net revenues of about Rs.25,000 for farmers with plot sizes of 0.05 ha
5,000 producers Maharashtra organized in groups for collective marketing
• Limited seed capital required• Faster income generation compared
to tree based farming• Ease of management, especially in
case of small farmers• Perennial income opportunity• Value added crop
Flower producer
Village level
collection center
Central level
collection center
Mumbai Dadar
wholesale Florist
Customer
Annual cost benefit analysis jasmine model Advantages
• Farmers not willing to work in farms for Rabi season instead of working in nearby town in construction work as laborers earning Rs.300 per day
• Tribals are not worried to form any assets, they grow what they need for consumption
Major issues
18
SFI promotion of mixed farming models for marginal farmers can yield net returns of US$800 to US$2,450 for a one hectare farm
Paddy, wheat, hybrid maize, legumes, oilseeds—each yield average net incomes of Rs.11,000 to Rs.15,500 per acre vs. Rs. 60,000 in vegetables and Rs. 25,000 for four goats.
Some conclusions from the stylized mixed farming model prepared by SFI team members for one hectare marginal farmers:
Mixed farming models in four project areas yield minimum net returns of Rs.40,000 to Rs.54,000 (about US$800 to US$1,000), or US$160 per person pa just above poverty line.
Models in four project areas, mixed farming models provide maximum net earnings of Rs.83,000 to Rs.144,000, 2 to 3 times minimum levels, creating US$2,450 pa on average for a one hectare farm—an attractive family income.
In Odisha and West Bengal, vegetables, goats and paddy represent over 80% of min and max net incomes. In Madhya Pradesh, vegetables, paddy, and hybrid corn represent over 90%. In Maharashtra, vegetables dominate earnings followed by paddy and maize.
Vegetables, with two crops on .2 to .3 acres, are the major net earners, 53% in Odisha, 60% in West Bengal, 46% in MP, and 81% in Maharashtra in the maximum scenarios.
Mixed farming models yielded net returns of
US$800 to US$2,450 for a
one hectare farm
A mix of vegetables, grain
and livestock yields the
highest incomes, with vegetables
the major net earners
19
Vegetables and goats produce nearly 90% of net earnings in the mixed farming model for Odisha
Project: Kalahandi, Odisha. NGO: KarrtabyaFamily size: Five members – Land holding: 2.5 acre productive land
Agricultural income sources
Area in acres / heads of livestock
Maximum net return
Minimum net return
Mean net return
Paddy 1.5 25,500 6,000 15,750
Vegetables (Kharif) 0.2
79,000 26,500 52,750Vegetables (Late Kharif) 0.3
Goat rearing 4 goats 26,000 13,000 19,500
Subtotal top three net earners 2 130,500 45,500 88,000
Other income sources 1.05 14,000 6,500 10,250
TOTAL 3.05 acres Rs.144,500 Rs.52,000 Rs.98,250
Top three earners as percentage of total
90% 88% 90%
20
Livelihood Triad Strategy
BASIX KRISHI’s business model is aimed at providing agricultural extension and business development services to small and marginal farmers
KRISHI was created in 2010 to develop agricultural and business development services (Ag/BDS beyond the financial inclusion services provided by Basix Financial Services Ltd. BASIX KRISHI provides comprehensive set of livelihood promotion services through their Livelihood Triad Strategy
Action Research Ag/BDS Scaling up of
Ag/BDSLaunch of
KRISHIAction Research through sub-sector study and pilot projects in A.P and Karnataka
2001-2003
Pilot Projects continued rigorously. 39 new pilots launched in 8 states
Ag/BDS created as a Strategic Business Unit (SBU) within BASIX
Creation of Basix Krishi Samruddhi Ltd. (BKSL) as an independent entity in April 2010
2004-2005 2006-2009 2010 onwards
Productivity Enhancement
Increase in yields or
reduction in costs
Risk Management
Local Value Addtion Diversification
Delivering timely
preventive care
Farm gate value addition
for better remuneration
Diversifying activities from farm to allied and non-farm
Input Supply, Output Sales
Source: FIELD VISIT, INTERVIEW WITH Mr. Arijit Dutta and BASIX KRISHI SAMRUDDHI LIMITED OVERVIEW PRESENTATION
Alternate Market
Linkages
BASIX KRISHI services
Institutional development
services
Financial inclusion services
1 2 3
21
About 30% of KRISHI’s farmers are landless and 40% have less than one hectare. Subsistence farmers are paying fee to receive BASIX KRISHI’s services
2004-05
2010-11
2011-12
22,000
690,000
160,000
Total number of farmers who have received BASIX
services and financing
15,000
600,000
105,000
Farmers for whom BASIX provided or organized input
supply
2004-05 2010-11 2011-12
0.3
126
42
148
41
BASIX expenditures on non-financial services to farmers (Million Rs.)
Fees collected by BASIX from farmers for non-financial services (Million Rs.)
Fees paid by farmers to receive BASIX non-financial services make BASIX Krishi a profitable business
Cotton
Groundnut
Dairy
Soybean
Key commodities for focus
Source: Arijit Dutta, CEO BASIX KRISHI, March 2013
Nancy, can you explain here exactly why decrease in numbers for BASIX
Vegetables
Pulses
Rice
22
Farmers pay a fee to receive BASIX KRISHI services. Backyard poultry and dairy are the products with the highest demand among farmers as results are easily visible by farmers
Product ProductType
Total Fee (Rs)
Input Product
Price(Rs)
Input Products ServicesCustomers
Served (Current)
Poultry, Duckery
Single 750 250 10 chicks, medicines, food Poultry management training,
training on low cost housing, feed preparation, vaccination, market linkages
14,000Double 1300 500 20 chicks, Medicines, Food
Commercial 3000 1200 50 chicks, Medicines, Food
Dairy Single 800 250 Vaccination, Calcium, De-worming (1 cow)
Preventive vaccination, health camps, feed management, better practices, market linkages
13,499
Farm Manage-
ment Services
Single 800 250 16 Plants , Bio-Pesticides Soil testing; training on nutrient management, pest management, crop management, vermi-compost, market linkages
8,700Double 1500 500 30 Plants, Bio-Pesticides
Commercial 3000 1200 100 Plants, Bio-Pesticides
Sheep and Goat Service 750 250 Vaccination, Medicines
Regular health check-up, vaccination, de-worming, training for good practices
300
MushroomM30 1200 500 30 mushroom sponge,
Polythene Training in new technology for mushroom cultivation, regular visit to check progress
N/A (new)M60 2400 1200 60 mushroom sponge,
Polythene
Fishery 750 250 3 medicines, fish-feed Training in fish management N/A
Source: FIELD VISIT, INTERVIEW WITH Mr. Arijit Dutta and BASIX KRISHI SAMRUDDHI LIMITED OVERVIEW PRESENTATION
Basix Krishi faces some challenges
Key challenges
Exact practices not replicable
Timely supply of inputs
Farmers have different needs in different areas. Existing products have to be re-designed
Timely supply of inputs e.g. chicks, niche inputs, since this is dependent on other company
Source: FIELD VISIT, INTERVIEW WITH Mr. Arijit Dutta and BASIX KRISHI SAMRUDDHI LIMITED OVERVIEW PRESENTATION
Timely availability of
creditTimely availability of credit through banking collaboration is a challenge
Lack of marketing
The biggest issue faced by Krishi is marketing of its products and services
Free government schemes
Free government schemes in these areas makes it difficult to sell products and services for money
Recruiting technical people
Lot of effort and resources have to be spent on training but retention is difficult
Difficult to establish quick
improvements in productivity
Farmers generally look for quick and visible results in the short run which is not always possible
24
B. Improving productivity1. TATA Kisan Sansar2. ITC eChoupal3. Bayer Rural Service Centres4. Syngenta Foundation India5. PRADAN
25
Tata Chemicals Limited empowers farmers through their Tata Kisan Sansars
Partnership with Farmers
Increased Profitability and
Relationship AssetsRevenue Growth
Agri SolutionsProducts/ Services
Relationship with Eco system
partners
Brand ImageApproaches
Customer
Business
Tata Kisan Sansars: Customer Centric Business Model
• 10,000 plus Tata Kisan Parivar Members• 8 States in North and East India• 60+ Resource Centres• 4 Soil Testing Laboratories
TKS Presence:26
The TKS Impact: Franchisee owners report 100% increase in incomes, farmers report 15-35% improvements in yields
CropAdditional Benefit to Farmer due to use
of CF (Rs/acre)
Marginal Benefit-Cost Ratio
Rice 9000 7.5
Wheat 3600 2.0
Potato 21000 >10
Sugarcane 5260 - 9300 3.6 – 3.7
Financial Benefit to Farmer
27
Tata Chemicals plans to focus the next 100 TKS franchises on supporting marginal farmers with technical inputs and selective buy-back
TATA wants to expand by 100 TKS over next 5 years, targeting subsistence farmers.
TATA will do experimental work at the beginning providing inputs and demo plots to understand what models work best to reach subsistence farmers.
TATA may do buyback on selective products. No standard approach at a beginning to test and build protocols than respond to different areas.
TKS strategy to reach marginal farmers
28
2,010
2,100870
1,171
Other350
eChoupals: 6,500Villages: 40,000Farmers: 4MPartners: 100+
E-Choupal Key Benefits to Farmers• Increase market price
transparency• Provide weather information• Share crop best practices • Channel to access other
goods / services
ITC has built a widespread rural distribution network to source its raw materials and channel its goods through its e-Choupal network
ITC’s business model has a farmer support system around the e-Choupal network. ITC e-Choupal has built an expansive reach in rural India , reaching 4
million farmers through the contest provided eChoupal website
E-Choupal Hub
(Processing &
Warehouse)
E-Choupal
Kiosk (info)
E-Choupal
Kiosk (info)
E-Choupal
Kiosk (info)
E-Choupal
Kiosk (info) Financing
(Kisan Credit card)
Retail Channels (grocery store, FMCG
sales)
Contract Farming (potatoes)
Haats
Extension Services(Partner-
ships) E-Choupal
Kiosk (info)
Tech-nico
(Potato Seeds)
29
ITC eChoupal provides direct and indirect extension services to about 225,000 small, medium and large wheat and soybean farmers
Extension services provided
• Choupal Pradarshan Khet (CPK): field level demonstration program to transfer new inputs and production technologies.
• Pre season meetings to brief farmers about current season program.
• On farm field visits during crop season.• Farmer field days at the end of the season to demonstrate
results. • Website throughout the season to communicate weekly
activities to be carried out on the farm.
Source: Venkata Krishna Velugubanti, Head-Agri Services, ITC Limited. March 2013
Direct contact with 22,000 farmers—those who either participated in demonstration program, training or field days.
Farmers reached through farm
extension interventions Indirect contact 200,000 farmers—those exposed to
demonstrations plots through direct farmers
30
Some key lessons in building effective and cost effective services for small farmers
Lessons learned in building effective services that result in substantial
increases in productivity for farmers
Lessons learned on cost-effective solutions to make eChoupal model
profitable
Multi tiered system by leveraging ICT, Haats, farmer training, field level demonstrations results in higher scale at a lower cost.
ICT and Haats can be used to disseminate simple information like weather, availability of inputs, simple practices etc., while farmer trainings are better for method and skill based activities demonstrations.
Field level demonstrations to demonstrate the result of one or more than one intervention resulting in yield increase or reduction in cost or both.
Channel rural communities as both suppliers and consumers, increasing their income raises purchasing power
Following eco system approach by involving multiple partners like research institutes and input suppliers is key to the success of extension efforts.
Conducting Choupal Pradarshan Khets and handholding throughout the crop cycle results in better adoption and improvements in yield.
High potential seeds as an intervention results in higher levels of adoption and yield improvement.
The longer the period a company works with farmer, the higher the level of adoption
Inputs suggested as a part of interventions should be made available to farmers to result in higher adoption level.
Source: Venkata Krishna Velugubanti Head-Agri Services, ITC Limited. March 201331
Bayer Rural Service Centres (BRSCs) use the post office distribution system to reach small and marginal farmers
MCXMarket price
Information
BayerSeed to Harvest
SolutionsOther partners
Farmers
Bayer Rural Service Centres (BRSCs) are a collaboration among Bayer, the Multi Commodities Exchange of India (MCX) and the India Post network to provide easy access to inputs, services and advice to farmers in remote villages.
BRSC housed in Village Post office
• Post office premises act as a hub for disseminating products, services and advise
• Currently in 91 branch post offices, reaching 262 villages in the districts of Koppal, Gadag and Bagalkot (Karnataka)
• Potential: Post office has 155,000 branches, which is twice as large as the outreach of all commercial banks in India put together
• Sales of Bayer products expected to increase by 30% in FY2012-13
• Bayer employee• Link between the
various stakeholders assisted by the India Post officials
BRSC coordinator
Post office official
• Receives a commission for sales to farmers
• Trust agent in community
Managed by:
• Farmers reached FY2012: 10,000
• Farmer pays a Rs.30 fee to become a member 32
Main products and services offered by Bayer
• Commodity price information• Soil testing• Agri-inputs, micro nutrients• Post harvest and quality assessment
trainings with National Bulk Handling Corporation
• Weather insurance service• Field visits and demonstrations• Awareness generation on Bayer animal
health products• Non agricultural products: LED torches,
solar battery, smokeless stoves
Main products and services offered
33
Working with 200 lead farmers, SFI will back demos, provide results-oriented payments for productivity, marketing improvements of participating farmers
Lead farmer
Farmer
SFI
Year 2Year 1
Rs. 50,000
Demos and training Lead farmer
Farmer
SFI
• Create model mixed farming by backing lead farmers in 200 villages
• Lead farmers make their farms available to all farmers in the village, and provide training and demonstrations every two weeks involving about 30 progressive farmers, with SFI staff participating monthly
• Financing of Rs. 40,000 to set up demo farm at plot of lead farmer
• Farmer to lead farmer ratio = 30:1
• Lead farmers who have performed well could be paid as extension officers Rs. 5,000 (US$100) a month in the eight active months of the year, adding Rs. 40,000 (US$800) to their income.
• About half of this amount can be calibrated to actual productivity and income increases by participating farmers, creating the incentive for lead farmers to pick the most progressive farmers and to devote the time to providing assistance
Rs. 5,000
a month
Farmer to lead farmer ratio: 30:1
Farmer to lead farmer ratio: 60:1
Extension services, Demos and training
34
To support the extension model, SFI staff would need to:
• Train lead farmers as a group, in each state
• Support the lead farmer in achieving maximum results from the full mixed farming model
• Provide lead farmers with training materials and videos
• Participate in training of farmers once a month.
• One SFI officer would be required for every 40 villages covered, with SFI officer expected to visit ten villages each week or about two per day.
• SFI needs to monitor training, demos and results very carefully, to learn lessons and reflect these in the POPs for the following year, and in SFI’s positioning as the experts in POPs for mixed farming models for marginal farmers.
35
The lead farmer model can be adapted to different areas, with systematic experimentation and lessons learned
SFI can experiment in a highly systematic way with modifications on the basic lead farmer market led extension model and the agro-entrepreneur model, capturing impact and lessons from each modified approach.
• One vs. two lead farmers in the village in year one, going with the one that has been most successful in impacting the productivity and earnings of 30 farmers in year one.
• SFI staff working solo to identify lead farmers in project areas in which SFI has experience, training the lead farmers in the area, and paying monthly visit to each lead farmer group of 30 vs. using specialized NGOs to provide all or part of these services to lead farmers on behalf of SFI.
• Different incentive structures provided to lead farmers, always linked to results of farmers he selects for his group of 30. Incentives can include SFI paying for the demo plot in year 1 vs. making direct payments to the lead farmer for inputs vs. outcomes in year 1 and 2.
• Having the lead farmer focus only on POP advice, adding the responsibility of having the lead farmer organize procurement of improved inputs on behalf of the farmers, adding the function of organizing production and marketing produce in local markets on behalf of the 30 participating farmers.
With the lead farmer model, SFI can experiment with:
Lead farmer model
ExtensionDemosTraining
Payment
Farmer
Lead farmer
36
In determining which of the specialized NGOs to work with, it is important for SFI to understand the focus and geographical footprint of each NGO
37
NGOStates in which activities
concentratedTypes of geographies and farmers of focus
Gender focus Commodity focus
Pradan Jharkhard, Orissa, Madhya Pradesh, Rajasthan, Bihar, West Bengal, ChharttisgarhAssam
Exclusive focus on remote areas and on very poor communities, mainly tribal and scheduled castes
Exclusively female SHG members
Combination of staple and cash crops e.g. vegetables, pulses, paddy.
BAIFPunjab, HP, Uttarakhand, UP, AP, Jharkhard, Orissa, MP, Rajasthan, Bihar, West Bengal, Maharashtra, Chharttisgarh, Assam, Karnataka, Gujarat, Haryana, Tripura
Low income rural communities
Male and female Fruits and vegetables, dairy animals and meat livestock,
Basix Krishi
Karnataka, Andhra Pradesh, Maharashtra
Focus on networks of farms and/or firms that supply raw materials, transform them, and distribute finished goods
Male and female
Dairy animal and livestock, poultry, staple crops, paddy, seed production, vermi-compost, organic farming
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The average land holdings of PRADAN’s farmers is less than 2 acres (0.8 ha).The initial intervention of PRADAN with subsistence farmers is on agriculture, with a focus on stabilization of the main food crop. In most locations, the food crops cultivated are paddy, wheat, maize and minor millets. The main intervention in food crops is around paddy cultivation. As families become food secure, PRADAN helps them diversify into cash crops. Usually, most families take up vegetable cultivation on the homestead in addition to food crops and some pulses as field crops.Since 2011, PRADAN has been encouraging the community to pay for its on‐field expertise
Food Crop Stabilization Interventions
Interventions SHGs Involved in 2011‐12
FamiliesCovered in
2011–12Paddy crop
Improved practices 7,190 54,435System for rice intensification (SRI)
5,821 33,195
Wheat (improved practice) 2,650 16,530Maize (as food crop) 3,205 25,960Millets (improved practice) 685 6,952Net food crops 9,257 76,503
PRADAN, NGO committed to grassroots empowerment and promoting producer organizations in rural areas worked with about 140,000 marginal farmers in FY2012 helping them improve their agricultural practices
Crop Diversification Interventions in 2011‐12
InterventionsSHGs
Involved in 2011‐12
FamiliesCovered in
2011–12Pulses 3,478 27,041Oilseeds 2,135 17,173Vegetables
Kharif (Monsoon) 7,464 53,967Rabi (Winter) 5,441 41,054Summer 2,304 15,252
Other crops 1,216 7,546
Services:• Support farmers plan household livelihood• Provision of inputs and technologies for vegetable production, which included new seed
varieties, package of practices, scientific nurseries, constructing low cost net houses to control diseases
• Marketing services. The fruits and vegetables were marketed through an informal farmer collective, in which selected youth entrepreneurs in the village aggregated all the produce at the village level and sold them in the cities nearby
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PRADAN also supports subsistence famers with land, water resources and livestock improvement programs
PRADAN also helps farmers access funds under MGNREGA.In terms of actual activities, there werethree major strands:
• Plantation (fruit trees, different types of host plants—tasar, lac, mulberry, etc.—and trees for timber)
• Land treatment to improve soil moisture regime and rejuvenation of soil
• Systems for water storage and irrigation
Plantation Families(% of ST SC group)
Fruit trees: Mango 9,012 (85%)
Other fruit trees 1,604 (85%)
Other plantations 3,317 (92%)
Land treatment(different locallysuited models)
10,177 (81%)
Irrigation 10,159 (80%)
Net covered without overlaps
25,200 (85%)
Improvement of land and water resources
Livestock
Focus on training the community in improved rearing practices. Key areas of intervention are:
• Reducing the inter‐calving period of the animal• Increasing milk yield• Reducing calf mortality• Enhancing animal health service support (both
preventive and curative) through the para‐vet system• Enhancing choices for milk marketing• Access to credit to create animal assets
Activity Families
Dairy 4,579
Goat rearing 4,015
Based upon this experience over the past few years, Pradan has made major changes in its strategy for agriculture and rural development
Pradan’s successful experience with this model indicates that, depending upon the geographical areas, one to two service provider can serve 200 farm families, or about six SHGs, earning a viable livelihood from fees for technical and marketing services to these farm families. Some of these agro-service providers also help SHGs with bank linkages.
Pradan remains committed to the use of self help groups (SHGs) comprised of 15 to 20 women farmers as the base of all its operations
To provide technical and marketing services to these agriculturally focused SHGs, Pradan now identifies strong potential agro-service providers from within the rural community, trains them, establishes protocols for service payments by women in the self help groups, with these agro-service providers e.g. 50 paise per kg of vegetables marketed to local mandis and to agents.
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C. Linking farmers to markets1. Rallis More Pulses2. RUDI3. Syngenta Foundation India
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Rallis’ More Pulses campaign aims to increase India’s pulses production and productivity
Rallis has developed an end-to-end support network for pulses farmers
To meet growing protein demand, India will need to double pulses yields
Grow More
Pulses
Package of Practices
Access to Financing
Harvest & Storage
Farmer Knowledge Exchange
Crop RotationQuality Seeds
Crop Advisory
Transparent Pricing for
Procurement
Market and Distribute under Tata’s i-Shakti
brand
Pulses (MT)
GAP
Rallis is currently piloting MoPu in three states (2011-12)
Maharashtra: 744 MT
Karnataka: 465 MT Tamil Nadu:
211 MT
Total Amount of Pulses Procured = 1420 MT
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MoPu’s pilots cover 20,000 farmers and aim to expand to 200,000 farmers in five years
MoPu spans over 500 villages and 20,000 farmers
Rallis’ package of practices leads to higher yields and better quality crops
# Villages by State
MoPu cuts out the middlemen and provides more value to the farmer
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# Farmers by State Details Mandi Rallis
Rate (Rs. 40 for 100 kg) 4000 4000
Unloading Charges – Rs.10/ 50 Kg Bag -20
Weighing Charges - 1 Kg/ Qtl -40
Commission - 2% - 4% -80
Net Rate 3860 4000
Kg / Acre
Four key drivers position the company for future growth and profitability
Key Drivers Implications
Yield Increase
• Target yield increase from 20-30% to 50% in the 2012 to 2013 production season
• Provide greater supply for i-Shakti dal products• Increase visits of crop advisors, package of practices
Access to Inputs
Processing Centers
Geographic Expansion
• Aggregate and organize farmers into groups to get inputs at better price and share of machinery
• Establish tie-ups with banks to provide farmers with working capital loans to purchase inputs
• Establish more processing centers in areas with high concentration of farmers
• Increase support provided to farmers to transport, quality check, and price pulses
• Aim to connect with 7.5 million farmers by providing 2.5 million with TCL inputs, consult 1 million farmers, and procure from 200,000 farmers in the next 5 years
• Develop micronutrients tailored to region and soil quality44
RUDI. Creating short value chains
Direct market access for more than15,000 small and
marginal farmers
Employment opportunities for over 5000 rural women
Providing quality, affordable products with an annual turnover of nearly
Rs. 70 million
Consumption
Rural and Urban
Consumers
Sale
RUDI bens, retail
shops, institutional customers,.
Processing
RUDI Processing
Centres
Purchase
RUDI purchasers and District
Associations
Production
Farmers
Distribution
Urban and Rural
Distribution Hubs 45
RUDI helps small and marginal farmers by providing them end-to-end support at all stages of the value chain
2008 2009 2010 2011 2012
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20
30
40
50
2008
2009
2010
2011
2012
0 10 20 30 40 50 60 70 80
FarmersRUDI bens
Reduced transaction costs with a ready market for sale of products
Access to updated information regarding daily crop prices and latest technologies
Provision of farmer education and training at all stages of the crop, creating awareness about Govt. benefits
Access to high quality inputs and finance at affordable rates
Production
Sale
RUDI’s reaching out to more than 15,000 small farmers and 5,000 rural women
Annual turnover
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SFI has launched a successful project to promote hybrid tomato seeds with marginal farmers for sale to Syngenta
In the past three years, SFI has supported local farmers in West Bengal to build seed-ling nurseries with low cost poly-houses to grow hybrid tomato seeds sold to Syngenta.
Participating farmers gain net earnings of Rs.80,000 (US$1,600) pa for each tomato seedproduction unit, based upon successful trials of seed quality with Syngenta Company.
In 2011-2012, Syngenta approved quality of the tomato seeds for Syngenta seed purchases from two units, which encouraged five more farmers to join the program. Currently the program has grown to 11 units producing 85 kg of tomato seeds, with 20 units proposed.
Number of units grown
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