Overview of Agriculture in Karnataka and

Scope for PPP

Presentation by

Commissioner for Agriculture

Karnataka State Department of Agriculture

•30 Districts, 176 Taluks, 769 Hoblies (740 RSKs), 6019 Gram Panchayaths & 29340 Villages.

• Total area 190.50 lakh ha. Cultivable area 121.61 lakh ha. (64%).

• Only 34% area under irrigation. High Drought Prone area.

• 10 Agro-climatic zones with rich crop diversity & 5 major soil types.

• 76% are SF/MF holdings. Average size of holding 1.55 ha.

Cereals 43.29 lakh ha. (45%)

Pulses 29.61 lakh ha. (31%)

Oilseeds 12.60 lakh ha. (13%)

Cotton 5.10 lakh ha. (5%)

Sugarcane 4.49 lakh ha. (5%)

Tobacco 0.89 lakh ha. (1%)

Area under Agriculture crops 95.98 lakh ha.

(80 % of total cultivated area)

Area under Horticulture, Plantation, Sericulture etc. 24.11 lakh ha.

(20% of total cultivated area 120.09 lakh ha.)2015-16

Source: Planning Commission Reports, Agri. Statistics at a glance & Economics Survey GoI. * New Series Estimates

Agriculture and Allied Sector Growth Rate in KarnatakaFive Year Plan Period-wise

Plan Period Karnataka

VIII th Plan 4.5

IX th Plan 3.2

X th Plan 2.9

XI th Plan(2007-08 – 2011-12)

5.5

XII th Plan (2012-13 - 2016-17)(Target)

4.5

2012-13 -5.1

2013-14 7.2

2014-15 3.9

2015-16 -8.7

2016-17 1.5

RICH CROP DIVERSITY• CEREALS - PADDY, JOWAR, RAGI, MAIZE

• PULSES – RED GRAM, BENGAL GRAM, GREEN GRAM, BLACK GRAM

• OILSEEDS- GROUNDNUT, SUNFLOWER & SOYABEAN,

…………………………………………………………..• HORTICULTURE• VEGETABLES- POTATO, TOMATO, CHILLIES

& ONION

FRUITS-MANGO, GRAPES & POMEGRANATE.

• PLANTATION-COCONUT, ARECA NUT, COFFEE &

• SPICES

Paddy 13 lakh ha. Jowar 12 lakh ha. Ragi 7 lakh ha.

Maize 13 lakh ha. Pulses 26 lakh ha. Sunflower 4 lakh ha.

Groundnut 6.6 lakh ha. Cotton 6.25 lakh ha. Sugarcane 5.75 lakh ha.

Sl. No.

Major CropsArea

(lakh Hectares)Production

(Lakh Tonnes)

1 Rice 12.12 35.28

2 Jowar 10.92 10.31

3 Ragi 6.68 10.06

4 Maize 13.25 36.69

5 Bajra 2.40 2.31

6 Wheat 1.94 2.00

7 Minor Millets 0.24 0.10

8 Tur 8.17 6.29

9 Bengal gram (Gram) 10.52 6.17

10 Groundnut 6.23 4.37

11 Sunflower 3.66 1.70

12 Soyabean 2.44 2.03

Area & Production of Major Crops(Avg. of Previous 5 years)

Comparative Yield of major Agriculture CropsYear : 2013-14

Unit: kgs/hect. (Sugarcane Yield in tonnes/hect.)

Sl. Crop India Highest - Karnataka * Andhra Tamil Maharashtra State's

No State Pradesh Nadu Rank

1 Rice 2416 (58%)3953 Punjab (100%) 3338 (75%)

2920

(97%) 3101 (92%) 1938 (26%) 2nd

2 Wheat 3145 (93%)5017 Punjab (99%) 1099 (56%) - - 1459 (74%) 15th

3 Jowar 956 (10%) 1661 A.P. (19%) 1122 (10%)

1661

(19%) 1294 (14%) 792 (10%) 5th

4 Bajra 1184 (9%) 2167 Tamil Nadu (14%) 1096 (12%)

1592

(24%) 2167 (14%) 1034 (5%) 7th

5 Maize 2676 (25%)5377 Tamil Nadu (39%) 3286 (36%)

4831

(50%) 5377 (39%) 2726 (13%) 5th

6 Bengal gram 960 (34%) 1439 A.P. (2%) 799 (14%) 1439 (2%) - 890 (24%) 10th

7 Tur 813 (4%) 1714 Bihar (2%) 965 (7%) 542 (1%) 966 (9%) 906 (2%) 5th

8 Groundnut 1764 (26%)2723 Tamil Nadu (40%) 896 (32%) 892 (24%) 2723 (40%) 1248 (21%) 7th

9 Sunflower 751 (30%) 2400 Haryana. (100%) 542 (22%) 870 (49%) 1714 (53%) 620 (23%) 7th

10 Soyabean 1012 (1%) 1612 A.P. (13%) 1311 (7%)

1612

(13%) - 1349 (0.4%) 3rd

11 Cotton 510 (34%) 750 Punjab (100%) 458 (28%) 495 (14%) 456 (25%) 358 (3%) 7th

12 Sugarcane

70.52

(95%)

114.41 West Bengal

(59%) 98.0 (100%) 80.1 (95%)

103.69

(100%)

82.07

(100%) 3rd

13 Tobacco 1542 (54%)2146 U.P. (100%) 850 (4%)

2000

(29%) 1529 (97%) 1000 (17%) 8th

Source: Agriculture Statistics at a Glance 2014, GoI, MoA. New Delhi. *2013-14 Fully Revised Estimates of DE&S, Bangalore.

Larger population dependent on agriculture – People are dependent on agriculture in Karnataka - ~54% of total workforce across Karnataka and it contributes only about 12% to State’s GDP.

Fragmented landholding and inadequate irrigation – More than 76% of farmers in Karnataka are marginal and small farmers. Inadequate irrigation makes it difficult for them to sustain farming.

Lack of institutional credit- About 40% of all loans come from informal sources. Marginal landholding households suffer the most with only 15% of their credit from institutional sources such as the government, cooperatives and banks — for households with land more than 10 hectares the ratio is 79%.

Output uncertainty - This is due to weather and other factors such as lack of market linkages, market prices etc.

Right value for produce - Farmers are unable to realize the right value for their produce and menace of middlemen, thus rendering farming an unviable occupation.

Issues faced by agriculture

Need to support farmers right from sowing seed to post harvesting handling.

Need to reduce risk in agriculture through value addition and integrating the agriculture supply chain.

Market / Consumer oriented production – Quality & Quantity.

There has been an increasing demand for high-quality value-addition in agro – products.

While business and investment opportunities in agriculture have spiked recently, private sector can utilize this opportunity.

Adoption of Good Agriculture Practices

What is the issue?

A structured approach for increasing the number of bankable agri-business and agri-infrastructure projects is needed.

Karnataka has a good record of public-private partnerships (PPP) in the development of infrastructure.

Unfortunately, the PPP model has not been adapted and applied in agri-infrastructure development with the same vigour.

Engaging the private sector will enhance investments, bring improved technologies and also generate rural employment.

What is needed?

Slow growth rate of agriculture sectorAgriculture is the primary source of livelihood for about 80 lakh farm families and about 75 lakh agricultural labourers in State, which accounts for more than 50% of the total population.Raising population is a key demand driver for agricultural growth in the State.Development of Hybrid and genetically modified seeds, mechanization, irrigational facilities needed which requires more institutional credit.Challenge to make agriculture a more profitable occupation and ensure that the rural population has a larger income to share.

Need for PPP in Agriculture

Need for new technologies with potential holistic solution, and their dissemination and commercialization.

Government has limited resources.

Innovation and knowledge are critical factors for achieving sustainable competitiveness, thus partnership is essential.

Teamwork increases the quality and relevance of the results and synergic effects occur when we collaborate with partners who have knowledge and resources.

Need for PPP in Agriculture ... contd

There is a need for PPP in agriculture sector for following reasons:Increasing focus on research and development in agriculture.Rising MSP incentivize farmingInstitutional credit for farmersGrowing yield and use of quality seedIncreasing mechanization of farming to overcome the shortage of agricultural labourers and to cutting cost of cultivation.Enhancing area under irrigation.Food security for increasing population.Timely availability of agricultural inputs and extension (Crop Protection, Agri Services, Seeds and fertilizers)

Need for PPP in Agriculture ... contd

High price volatility is one of the major reasons for agrarian distress which is primarily due to supply shocks caused by erratic outputs.

Hence, there is a need for enhancing storage infrastructure to build buffers for address shortfalls and absorb surpluses.

Development of the markets warehouses & cold storage network offers an enormous opportunity for public-private partnerships.

Non-availability of land and the low scale of business are reported to be major obstacles for private sector participation.

Allocation of government land (Panchayat or railway land) on long-term leases can be considered.

Scope – Infrastructure , Market

Agro-processing and value addition for commodities has huge opportunities due increasing demand.

This will also help in reducing unaccounted losses of perishable commodities which is another menace in the agro-supply chain.

World-class infrastructure in food processing sector through mega food parks and integrated cold chains are required.

PPP models are the easiest pick for achieving these objectives.

Scope- Value addition & Agro-processing:

State Government will be happy to receive value addition projects in Jowar

Jowar Flour,Jowar Rava,Jowar Roasted Flakes,Jowar popcorn,

Major Districts:Kalaburagi, Vijaypura, Belgavi, Bagalkot, Raichur, Bidar, Gadag, Ballari

State Government will be happy to receive value addition projects in Ragi

Ragi NoodlesRagi MaltRagi Bread,Ragi Flour,Ragi Cookies,Ragi Dosa mix,

Major Districts:Tumakuru, Bengaluru Rural, Hassan,Mysuru, Chikkamagaluru, Mandya

State Government will be happy to receive value addition projects in Siridhanya

19

Major Districts:Chitradurga, Ballari, Tumakuru,

Koppal, Chikkamagaluru

State Government will be happy to receive value addition projects in Soyabean

20

Soya flakes/GritsSoya flourSoya GritsSoya hullsSoya ChunksSoya GranulesSoyabean oilSoya Gums, Lecithin

Major Districts:Bidar, Belgavi, Dharwad

State Government will be happy to receive value addition projects in Tur (Red gram)

Major Districts:Kalaburagi, Vijaypura, Raichur,

Bidar, Yadgir, Bagalkot

State Government will be happy to receive value addition projects in Bengal gram

DalBesanRoasted Masala Channa , etc.

Major Districts:Vijaypura, Kalaburagi, Raichur,

Belgavi, Koppal Gadag, Dharwad

State Government will be happy to receive value addition projects in Maize

23

FlourBeerMalt drinkBreakfast cerealsStarchSyrupAnimal feedsFood and BeveragesPharmaceuticalOil industry

Major Districts:Davanagere, Haveri, Belgavi, Ballari,

Vijaypura, Koppal Hassan

The private sector will enter on its own where there is commercial viability.

As above-mentioned areas may be commercially less viable, but have high economic benefits, PPP models are of prominence.

PPP models are indeed promising and could usher in revolutionary changes in agriculture.

Innovative policy designs are indispensible to capitalise on this.The Private partners can gain by assured supply of produce and Govt. subsidies for infrastructural needs.

How does the future look?

Thanks. Lets join hands.

Agriculture Sector GDP

Agriculture and allied sectors of Karnataka have registered growth rates between two and three per cent per annum in the past three decades, but these have been marked by a large scale of fluctuations due to droughts and other natural calamities.

Growth Rate of Agriculture and allied sectors of Karnataka was 2% in 9th Five Year Plan period (1997-98 to 2001-02), 2.1% in 10th Plan period (2002-03 to 2006-07), and 5.7 % in 11th Plan period (2007-08 to 2011-12).

Sl.

NoSector

GSDP at

Current Prices

(Rs. Crore)

GSDP –

Growth rates at

Constant Prices

(%)

GSDP –

Contribution (%)

2015-16 2016-17 2015-16 2016-17 2015-16 2016-17

1. Agriculture 109318 113953 -9.4 2.0 11.9 11.3

2. Industry 218857 233097 9.2 4.2 23.9 23.0

3. Services 586614 666149 10.2 9.1 64.1 65.7

4. GSDP at Basic Prices 914789 1013199 100 100

5. Product taxes 125282 144854

6. Product Subsidies 23161 25363

7. GSDP at Market Prices 1016910 1132690 8.4 7.2

Sl.

NoSector

GSDP at

Current Prices

(Rs. Crore)

GSDP –

Growth rates at

Constant Prices (%)

Contribution to

overall GSDP (%)

2015-16 2016-17 2015-16 2016-17 2015-16 2016-17

1. Crops 76558 79202 -14.0 2.1 8.4 7.8

2. Livestock 19793 21033 3.8 2.5 2.2 2.1

3. Forestry and Logging 8466 8705 -1.1 -1.9 0.9 0.9

4. Fishing 4501 5012 -4.9 3.5 0.5 0.5

109318 113952 -9.4 2.0 11.9 11.3

Yield of major Agriculture Crops

Rice - 2nd place – 3338 Kg./ha., as against national average of 2416 Kg/ha.

Soybean – 3rd place – 1311 Kg./ha., as against national average of 1012 Kg./ha.

Sugarcane – 3rd place – 98 tonnes/ha., as against national average of 70.2 tonnes/ha.

Jowar – 5th place -1122 Kg./ha., as against national average of 956 Kg./ha.

Maize – 5th place – 3286 Kg./ha., as against national average of 2676 Kg./ha.

Red gram – 5th place, 965 Kg./ha., as against national average of 813 Kg/ha.