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Agri-Services

Presenter: Praveen Singh

MBA(AB)

2009-11 1

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1 • Indian Agriculture Overview

2 • Introduction

3 • Components of Agri-Services

4 • Conclusion

5 • References

1. Agriculture Credit and

Finance

2. Agriculture Insurance

3. Warehousing and Storage

4. Consultancy Services

5. Rural Retail

6. Agriculture Marketing

7. Agriculture Extension and

Education

8. Agri. Clinics and Agri.

Business Centers

9. Agriculture Certification

Flow of Presentation

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India is a country of more than 8 lakhs villages mostly

dependent upon agriculture and allied activities

India 3rd largest of producer of agriculture commodities

Total cultivable land=52%

Share of agriculture in national income=

Important contribution to Employment=

Important source of industrial development=

Importance in international trade=

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Indian Agriculture Overview

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Paradigm

shift

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Milk

#1in the world

91Mn T

F&V

#2 in the world

129 Mn T

Food Grains

#2 in the world

220 Mn T

Sugarcane

#2 in the world

236.18 Mn T

Cattle/Buffaloes

Largest in the

world

283 million

Fisheries

Marine:2.99Mn T

Inland:3.21Mn T

Tea

Largest

.0.85Mn T

Goat & Sheep

183 million

#5 in Egg

production

Source :-The agribusiness book-A marketing and value-chain perspective

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AGRI SERVICES

“Agri-services are the services which are offered to farmer for

making them facilitate and convenience in their occupation and

uplift there life standard”

OR

The agri-service sector of the agriculture industry is concerned with

researching new and better ways to produce and market food and to

protect food producers and consumers, and with providing

special, customized services to all the other phases of agriculture

Public agencies have played a dominant role in the agri-services

area, but private agencies are rapidly increasing their offerings of

farm services.

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1. Agriculture credit and finance

2. Agriculture Insurance

3. Warehousing and storage

4. Agriculture Certification

5. Consultancy services

6. Agriculture Marketing

7. Rural Retail

8. Agri. Clinics and Agri. Business centers

9. Agriculture Extension and Education

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Components of Agri-Services

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There has been sharp increase in credit to agriculture through institutional sources i.e., from Rs. 620.45 billion in the year 2001-02 to Rs. 2,871.49 billion (2008-09) and that is because of maximum increase in credit through commercial banks.

Target of advance to agriculture through institutional sources in the year 2009-10 is Rs. 3,250 billion.

Around 4.54 crores new farmers were financed in 2008-09

Farm loan upto Rs. 50,000 has been made collateral/security free

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1.AGRICULTURE CREDIT AND FINANCE

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CONT………..

To accelerate the flow of credit to agriculture and allied

activities, the Government is implementing a comprehensive

Farm Credit Package since June, 2004

From Kharif 2006-07, farmers are receiving crop loans upto a

principal amount of Rs. 3 lakh at 7% rate of interest and the

Government is providing subvention of 1 per cent

For 2010-11, banks have been directed to lend Rs 3,750

billion to the farm sector –an increase of 15.4 per cent from

the targeted lending of Rs 3,250 billion in 2009-10

SOURCE:-https://www.crisilresearch.com/ResearchProWeb/Budget2010/budget2010.jsp 10

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AGENCY-WISE GROUND LEVEL CREDIT FLOW FOR AGRICULTURE

AND ALLIED STATEMENT SHOWING AGENCY-WISE AND YEAR-WISE

PROGRESS OF CREDIT FLOW IN THE COUNTRY

Agency 2007-08 2008-09 2009-10*

Target Achevt. Target Achevt. Target Achevt.

Cooperative Bank 520 482.58 550 367.62 450 277.05

Commercial Bank 1500 1810.88 1950 2236.63 2500 925.95

RRB’s 230 253.12 300 267.24 300 175.31

Other Agencies Nil Nil Nil Nil Nil Nil

Total 2250 2546.58 2800 2871.49 3250 1378.31

11*September, 2009

(Rs. in billion)

Source:-http://agricoop.nic.in/Credit/cf171209.pdf

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Insurance applied to agricultural enterprises

Two category

Single peril coverage

Multi-peril coverage.

Objectives

Financial support to farmers in the event of crop

failure as a result of drought, floods.

Credit eligibility of farmers after a crop failure for

the next crop season

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2.AGRICULTURE INSURANCE

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MAJOR INSURANCE SCHEMES IN INDIA

First Individual Approach Scheme 1972-1978

Pilot Crop Insurance Scheme (PCIS) 1979-1984

Comprehensive Crop Insurance Scheme (CCIS) 1985-99

Experimental Crop Insurance Scheme (ECIS) 1997-98

National Agricultural Insurance Scheme (NAIS) 1999

Pilot Weather Based Crop Insurance Scheme (WBCIS)

Other Agricultural Insurance Schemes :-Farm Income Insurance , Livestock

Insurance , Rainfall Insurance etc.

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NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS)

Introduced from the Rabi season of 1999-2000

AIC from April, 2003, took over the implementation

of NAIS

CROPSAll food grains,

All oilseeds and

Annual horticultural / commercial crops –

Sugarcane,

Potato,

Cotton,

Ginger,

Onion,

Turmeric,

Risks Fire & Lightning

Storm, Cyclone, Hailstorm,

Typhoon, Tempest,

Hurricane, Tornado

Flood, Inundation &

Landslide

Drought, Dry spells

Pests / Diseases

Exclusions : War,

nuclear risks,

malicious damage

Chillies,

Coriander,

Cumin,

Jute,

Tapioca,

Banana

Pineapple

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MAJOR AGRICULTURAL INSURANCE COMPANIES AND THEIR

SERVICES

Insurance Company Services

1 Agriculture Insurance Company National Agricultural Insurance of India Ltd.

Scheme for crops, seed crop

insurance, Varsha Bhima,

Weather Based Crop Insurance

2 National Insurance Co. Ltd Rural Insurance – Cattle, Sheep,

Goat, Poultry, Prawn, Silkworm,

Horticulture, Plantation, Pump sets

etc

3 United India Insurance Co.Ltd Cattle, Poultry, Agricultural pump

set, Gramin accident, Plantation,

animal driven cart, tonga

4 New India Assurance Co.Ltd. Rural Insurance – Cattle, Sheep,

Goat, Poultry, Prawn, Silkworm,

Horticulture, Plantation, Pump sets

etc

5 Oriental Insurance Co.Ltd. Agriculture, Sericulture, Poultry etc.

6 Lombard General Insurance Company

7 IFFCO -TOKIO General Insurance Company15

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The storage of goods, from the time of production to the time of consumption, ensures a continuous flow of goods in the market.

Protects the quality of perishable and semi-perishable products from deterioration;

It helps in the stabilization of prices by adjusting demand and supply;

Provides employment and income through price advantages.

Adds time utility to the farmer’s produce.

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3.WAREHOUSING AND STORAGE

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Annual Agriculture production …….. 600 MMT

Food grains ……… 200 MMT

Fruits and Vegetables ….. 100 MMT

Mostly serviced by public sector:

CWC ………… 10.27 MMT

SWCs ……….. 19.03 MMT

FCI …………... 25.20 MMT

Private sector contribution (estimated)

For public use … 10 MMT

For self use … 20 MMT

17FICCI site

CURRENT SCENARIO OF WH

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Seed Certification

Agricultural Marketing and Agri-Business

Department

Agriculture Department

Establishment of Fertiliser Control Laboratories

Organic Certification

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4.AGRICULTURAL QUALITY CONTROL

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There are many government and private

organizations which provide consultancy services to

farmers.

Objectives:

To disseminate information and

technologies to the farmers.

To supply quality seeds and seedlings.

To impart training to meet the needs of urban and

rural people.

To operate Plant Clinic Centre.

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5.Consultancy Services

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TYPES

Government sector initiaves:-

AGMARKNET

Kisan Call Centre, MANAGE

Private sector initiatives:-

ITC e-Chopal

iKisan,

Tata Kisan Kendra (TKK),

TARAhaat,

EID Parry

Mahindra Shubh Labh

Multiple Rural Services portals - Gyandoot, Warna Wired

village, Tarahaat, Village Information Kiosks, etc.

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Co-operative sector initiative:- WARANA Wired Village,

Social sector initiative:- M. S. Swaminathan Research Foundation (MSSRF),

Aaqua (IIT Mumbai),

e-Sagu

Rural connectivity and allied service providers

√ Drishtee,

√ N-logue

Information service providers

iKisan, commodity India, Agriwatch, Indiaagronet, etc.

Knowledge networks and knowledge banks such as

Honey Bee Network, Harit Gyan, ISAP, GAU Satellite

Krishi Goshthi, etc.

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Indian Society of Agribusiness Professionals

(ISAP) is a non-government, non-profit

organisation incorporated in 2001, under

Section 25 of the Indian Companies Act.

Clients

International Organizations

Government of India organizations

State Governments/Departments

Private Sector

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Agri-Extension Services

Training and Entrepreneurship development

Market Linkage Program

Project Planning and Development

Industry Support

Centre for Financial Inclusion

Services Provided by IASP

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Source:- www.ikisan.com 24

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To assist the State Governments, the GoI and other public

sector organizations in effective management of their

agricultural extension and other agricultural management

systems

Services provided by MANAGE

1. Consultancy

2. Management Training

3. Management Education

4. Management Research

5. Information and Documentation services

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A not for profit voluntary organization was set up by Mr. Kamal M. Morarka in 1993

Vermiculture Technology Development

Organic Food Marketing

Regulatory-Quality Certification Services

Logistics and Supply Chain management

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Morarka Foundation

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These markets are meant for the farmers to take their

produce for sale and facilitate farmers, immediate cash

payments.

The directorate of state Agricultural Marketing Board or

Registrar of cooperative marketing societies is controlling

Primary and secondary wholesale markets.

The end of 1950, there were 286 regulated markets in the

country, their numbers on 31 March 2009 stood at 7139

(27375)

27Source:- http://agmarknet.nic.in/Regulated_Mkt_31.htm

Agriculture Marketing6.Agriculture Marketing

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AGRICULTURAL MARKETS

Apani Mandi / Farmers market / Raythu Bazars

Rural Primary Hats/ Periodic Rural Markets

Market Sub yards

Primary Market Yards/ Agri. Produce Market Committee (APMC)/ Mandi,

Secondary Market Yards/ Secondary Markets

Modern Market yards

Wholesale markets-Perishables

Terminal Market yards-Perishables

Future Markets

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GOVT. ORGANIZATIONS DEALING WITH

AGRICULTURE MARKETING

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DAC

DMI

Faridabad (Haryana)

NIAM

Jaipur (Rajasthan)

Function:-1.Regulation, Development and Management

of Agricultural Produce Markets

2. Grading and Standardisation

3.Training

4.Marketing Extension

5.Promotion of Cold Storage

6.Administration of Meat Food Products

Order, 1973

7.Market Research, Surveys and Planning

8.Agricultural Marketing Information

Network

9.Construction of Rural Godowns

10.Revenue

Function:-

1. Training,

2. Research

3. Project Formulation

Activities

4.Consultancy

5. Education

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AGMARKNET

Launched by the Department of agriculture and

Cooperation in march 2000

Provide linking between important agricultural produce

markets spread all over India and the state agriculture

marketing boards/ directorates and the DMI for effective

exchange of market information.

The market information network(agmarknet.Nic.In)

Objective

To facilitate collection and dissemination of information for

Better price realization

The portal covers market, price, infrastructure and promotion-

related information for efficient marketing

A Joint Venture ofDIRECTORATE OF MARKETING &

INSPECTIONand

NATIONAL INFORMATICS CENTRE Govt. of India

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Crops Directorates (8) [Wheat, Jute, Cotton, Rice, Sugarcane, Millets, Pulses, Tobacco]

Technology Mission on Horticulture

Coconut Development Board

IFFCO

Network

Area

Office

Area

Office Kiosk

DMI Hqs.

AGMAKRNET

http://agmarknet.nic.in

Area

OfficeFarmers

Markets

DMI State

Offices(27)

IFFCO

Local

News

papers

Notice

Board /

Electronic

Board

Regional

Office

Regional

Office

Regional

Office

IFFCO

Network

CDB

CDB

Network

FarmersCall Centres

Agri-clinics

Mobile

Operators

farmers

State Mkts./

Directorates

(50)

Regional Portals

(8 already

approved)

Farming

Community

Public Access

Mobile

users

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The concept has been comes in the Country by the tobacco major ITC Ltd. by opening up “ChoupalSagar”, the first rural shopping mall of the Country.

The retail outlet offers:

High yielding seeds, good quality fertilizers and pesticides, loans, crop insurance and even radio sets to TV sets, At competitive prices

They also provide current market information, Credit facilities and contract farming, which are beneficial for small farmers.

7.Rural Retailing

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Introduction

• ITC’s International Business Division, one of India’s largest

exporters of agricultural commodities, has conceived e-Choupal as a

more efficient supply chain aimed at delivering value to its

customers around the world on a sustainable basis

• It offers the farmers of India all the information, products and

services they need to enhance farm productivity, improve farm gate

price realization and cut transaction costs

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e-Choupal Now

States covered 10

No. of e-Choupals 6500

Farmers e-empowered 4 million

Villages covered 40,000 7

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FARMER GRAINSCHOUPAL

SAGARTRACTOR WEIGHED

PRODUCE UNLOADED

MONEY GIVEN

ONE STOP DESTINATION

Intermediaries take 75% of MRP

25%15% 15%

25%10%10% 100%

FarmerCommission

AgentProcessors Wholesaler

Sub

WholesalerRetailer Consumer

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Each HKB campus is 3-4 acre ( 12 – 15000 sq.m) in size which can

accommodate facilities like an agri-advisory center, agri-input retail

store, farm output warehouses, fuel pump, tractor service centres,

warehouses, bank branches, ATMs etc.

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Three broad areas in which “Hariyali” operates

Farm Advisory

Rural Retailing

Farm Produce Linkage

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"HKB" is providing end-to-end ground level support to the Indian farmer & thereby improving his "profitability" & "productivity”

The “HKB" chain, seeks to empower the farmer by setting up centres, which provide all encompassing solutions to the farmers under one roof

Each “HKB" centre operates in a catchment of about 20 kms

A typical centre caters to agricultural land of about 50000-70000 acres and impacts the life of approx. 15000 farmers.

All Farmer’s needs under one roof !

Hariyali Kissan Bazaar

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Therefore, there is a need for giving incentives to such

graduates to undertake, on viable basis, agri-business ventures

to meet the felt needs of technical and extension services

support to the farming community.

Graduates in

Agriculture and allied

subjects = 11,900/yr.

Intake in Post

Graduate

programmes = 5500

2000 are

able to get

Job Reservoir=9900

Source:-39

WHY WE NEED AGRICLINICS AND AGRIBUSSNESS

CENTERS?

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GoI, in association with NABARD and MANAGE has launched

this unique scheme

To take better methods of farming to each and every farmer

across the country

Objectives

To supplement the efforts of government extension system

To make available supplementary sources of input supply and

services to needy farmers

To provide gainful employment to agriculture graduates in new

emerging areas in agricultural sector

Source: www.agriclinics.net 40

8.Agri Clinics and Agribusiness

Centres

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Concept

Agriclinics : to provide expert services and advice to farmers on

cropping practices, technology dissemination, crop protection from

pests & diseases, market trends and prices of various crops in the

markets and also clinical services for animal health etc. which would

enhance productivity of crops / animals

Agribusiness Centres :

To provide input supply, farm equipments on hire and other services.

Eligibility

Agriculture Graduates/Graduates in subjects allied to agriculture like

horticulture, animal husbandry, forestry, dairy, veterinary, poultry

farming, pisciculture and other allied activities.

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Advice and assistance to farmers to help them

improve their methods of production and

marketing is conventionally called agricultural

extension

Objective Dissemination of useful and practical information relating to

agricultural activities focused mostly on improved

seeds, fertilizers, farm

implements, pesticides, poultry, livestock, etc

Expert advice to farmers on cropping practices, innovation

technology dissemination, crop protection from pests and

diseases, market trends and prices of various crops in the

markets and also dissemination of information about occupational

health facilities, risk covers and provisions of crop and personal

insurance." 42

9. Agriculture Extension

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WHERE EXTENSION IS NEEDED?

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Research FarmersExtension

Feedback on Practical Problems

Normally the gap could be due to any one of the following reasons:

Lack of awareness, knowledge or skill

Lack of conviction or motivation

Fear of loss

Lack of resources(finance) or availability of inputs etc.

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DAC/DOE

ICAR

Insts.

NRCs

APC

ATMA

FAIC

ATIC(44)

ZRS

FAIC

Extension Education

Institutions (4)

MANAGE

DOA DOH DOF DAH

DOA DOH DOF DAH NGOs

SAMETI

State Level

Districts Level

Village LevelFARMERS

KVKs(569)

SAU

Agriprenuers

Extension Information Flow(Public )

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1) Training Camps

2) Farmer’s field days and fairs

3) Mass media

4) Young farmers organization

5) Lab to land programme

6) Operational research projects

7) Training and visit system

8) Corresponding courses

9) Kisan call centre

10)Krishi Vigyan Kendra's

Extension Services Provided By

Public Sector

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AGRICULTURE EDUCATION

SYSTEM IN INDIA

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ICAR

State Agricultural Universities (SAUs)

(45)

4 National Institutes

IARI,IVRI,NDRI,CIFE

Deemed universities

The first State Agricultural University was established in 1960 at

Pantnagar on the pattern of the Land Grant Colleges of the United

States

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CONCLUSION

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REFERENCES

Agriculture Today

The agribusiness book

http://agricoop.nic.in/

www.echoupal.com

www.agmarket.com

www.indiaagronet.com

www.ficci.com

www.agriwatch.com

www.manage.gov.in

www.ikisan.com

http://dacnet.nic.in/extension/48

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?