Agri-Services

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Presented by :-

Gaurav SaxenaPuneet Arora

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Flow of Presentation(contents)

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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

FisheriesMarine:2.99Mn TInland:3.21Mn T

TeaLargest

.0.85Mn T

Goat & Sheep183 million

#5 in Egg production

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

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 finance2. Agriculture Insurance3. Warehousing and storage4. Agriculture Certification5. Consultancy services6. Agriculture Marketing7. Rural Retail8. Agri. Clinics and Agri. Business centers9. 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.jsp8

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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

9*September, 2009

(Rs. in billion)

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

• 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 & LightningStorm, Cyclone, Hailstorm, Typhoon, Tempest,Hurricane, TornadoFlood, 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 Services1 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 Company7 IFFCO -TOKIO General Insurance Company

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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

15FICCI 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 Certification16

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 OrganizationsGovernment of India organizationsState Governments/DepartmentsPrivate 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

iKisan

services

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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 DevelopmentOrganic Food MarketingRegulatory-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)

25Source:- 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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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.Consultancy5. 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 forBetter price realizationThe portal covers market, price, infrastructure and promotion-related information for efficient marketing

A Joint Venture of DIRECTORATE OF MARKETING & INSPECTION

andNATIONAL 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.

AGMAKRNEThttp://agmarknet.nic.in

Area Office

Farmers

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 “Choupal Sagar”, 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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One Stop Destination

Intermediaries take 75% of MRP

25%15% 15%

25%10%10% 100%

FarmerFarmer Commission Agent

Commission Agent ProcessorsProcessors Wholesaler Wholesaler Sub

Wholesaler

Sub Wholesaler RetailerRetailer Consumer Consumer

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Each HKB campus is 3-4 acre ( 12 – 15000 sq.m) in size which canaccommodate facilities like an agri-advisory center, agri-input retailstore, farm output warehouses, fuel pump, tractor service centres,

warehouses, bank branches, ATMs etc.

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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

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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.net38

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."

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9. Agriculture Extension

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Where extension is needed?

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Farmers Extension

Feedback on Practical Problems

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

Lack of awareness, knowledge or skillLack of conviction or motivation Fear of lossLack of resources(finance) or availability of inputs etc.

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1) Training Camps2) Farmer’s field days and fairs3) Mass media4) Young farmers organization5) Lab to land programme6) Operational research projects7) Training and visit system8) Corresponding courses9) Kisan call centre10) Krishi Vigyan Kendra's

Extension Services Provided By Public Sector

AGRICULTURE EDUCATION SYSTEM IN INDIA

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9The first State Agricultural University was established in 1960 at Pantnagar on the pattern of the Land Grant Colleges of the United States

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/

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