A presentation on privatisation

A PRESENTATION ON

SUBMITTED BY:NIDHI SARRAFM.Sc. 1st SEMEXTENSION EDUCATION

PRIVATISASION OF EXTENSION SERVICES

BIHAR AGRICULTURE UNIVERSITY, SABAUR

o Act of reducing the role of Governmet.

PRIVATISATION

CONCEPT:

• Involves extension personnnel from private agency.

• Clients share the responsibility for services.

• Act as alternative to public extension services.

TYPES OF PRIVATE EXTENSION SERVICES:

Entirely private type.

Consists of farmer’s organisations, NGOs etc.

OBJECTIVES:

•Maximum possible profit to the clients through advisory services because their main objective is to increase the income of the farmers.

•To become more efficient and effective in providing services because their survivaldepends upon nature of their performance

REASON BEHIND PRIVATISATION:

• Financial burden on Government.• Disappointing performance of public

extension services.• Commercialisation of agriculture.

Extension generates new income.Provides Demand-Driven ServiceIncreases the voice of farmers in the

extension serviceBecome more cost effective with efficient

and quality service.Private extension increases staff

professionalism

ASSUMPTIONS BEHIND PRIVATE EXTENSION:

APPROACHES TO PRIVATIZATION

• Fee for each visit of an extension agent or for each service.• A levy can be charged on certain agricultural products.• Costs can be met from membership fees paid to farmers’ association.• Receive a specific portion of the extra income a farmer earns.

Input dealersAgribusiness organisations.Producers cooperatives.Agricultural consultants.Krishi vigyan kendraMedia organisationsPrivate sector banksUnemployed agriculture graduate

PRIVATE SECTER EXTENSION PROVIDER

 SOME SUCCESSFUL EXAMPLES OF PRIVATE SECTOR INITIATIVE

Tata Kisan Sansar

ITC's e-Chaupal

Tarahaat.com Portal

Mahindra Shubh Labh Company Ltd.

MERITS OF PRIVATISATION

• Farm advisory services for profit maximization of clients• Timely inputs supply for better production• Providing market information and market intelligence• Processing the clients produce• Marketing the clients produce• Providing credit facilities for farmers.• Providing infrastructure facilities e.g.: transport, storage.

Information becomes excludable in the short term.

More face-to-face contacts and less emphasis on mass media usage.

Increased dependence of farmers. Payments cannot be deferred nor based on

impact. Contradictory message flows from competing

sources. Human resource and organizational

development are sidelined.

DEMERITS OF PRIVATISATION