Invest in IT to boost agricultural services

VOLUME 01 I ISSUE 01 I JULY 2015 I Rs 100/- SMART AGRI POST Empowering agripreneurs… “We want to make farming profitable for farmers” Radha Mohan Singh ,Union Agriculture Minister Jain Irrigation: Origo Commodities: Micro irrigation can increase Harvesting a good harvest farmer’s income by 50% 2 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 3  SMART AGRI POST Empowering agripreneurs… RNI Title-code DELENG18845 Volume 1 I July 2015 Issue 1 Editor: Sales Contacts Pravash Pradhan Delhi 111/9, 3rd Floord, Assistant Editor (Agri-Extension) Ali Apartment, Kishangarh, Dr J R Mishra, Sr. Scientist, IARI Vasantkunj, New Delhi-110070 Phone: +91-11-64555667 Copy Editor info@smartagri post.com Sabita Bala Rout Mumbai Senior Correspondents 73, 1st Floor, Evershine Mall, Maheshwar Kumar Singh Mindspace, Link Road Designer Malad (W), Sarat Nayak, Mumbai-400064 Web Designer Phone No.022-40105768 Rasmi Ranjan Parida Kolkata Photographer 110/23A, B T Road, Deepak Saha Kolkata-700108 (033)65500929 Editorial Board: Mr Gokul Patnaik, IAS (retd) & Chairman, Ahmadabad Global AgriSystem E-7, Riddhi Siddhi Apartment, Dr. B B Pattanaik, Former MD, (Near Kameswar Sghool) Central Warehosuing Corporation Jodhpur Cross Road, Dr. Subrata Kumar Dutt, Food & Nutrition Expert Ahmedabad, Gujarat +91- 9429605873 Marketing P2C Communications Chennai 011-64555667, info@smartagri post.com Raj Villa, 23/6, Vanniar Street, Subscription & Circulation K Hariharan Choolaimedu, subscri ption@smartagri post.com Chennai- 600094 chennai@smartagri post.com Commercial Graphics Printed, Published and Owned by Pravash Chandra Pradhan Place of Publication: 111/9, 3rd Flood, Ali Apartment, Kishangarh, Vasantkunj, New Delhi-110070, Printed at Saujanya Printing Press, C-95, Okhla Industrial Area, Phase 1, New Delhi-110020, India, Editor: Pravash Chandra Pradhan All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic and mechanical, including photocopy, or any information storage or retrieval system without the prior written permission from the publisher. www.smartagripost.com Write in your comment/feedback on news, articles, features and interviews at editor@smartagripost.com C R E A T I O N S 4 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 1  CONTENTS COVER STORY Insight 28 SMART AGRI POST Profitable agriculture, cheaper food Empowering agripreneurs… Gokul Patnaik, IAS (retd.) From the Editor Food Processing Indian Agriculture 32 Reality Check Challenges and Opportunities 4 No more cold shoulder to cold chain, says Badal INTERACTION 9 Dear Readers, Guest Column 34 Welcome to Smart AgriPost. Micro irrigation can increase farmers’ income by 50% Indian agriculture faces tremendous challenges. The fact is that growth of agriculture All that glitters... Anil Jain, Managing Director, cannot be imagined in isolation. A lot of factors like quality inputs-water, seed ... is dangerious Jain Irrigation Systems and fertiliser, in particular- as well as post-harvest management that includes Pradipta Sahoo, Safal INTERACTION efficient supply chain and storage, and market linkages must be considered as a whole when we plan for a sustainable agriculture. Otherwise, it would be difficult 11 International to address issues like regional imbalances in terms of productivity per hectare and low price discovery for farmers among others. We need to address the problem of excess urea usage 36 Government shouldn’t Dr U S Awasthi, Managing Director, IFFCO meddle in a coopertive I wonder when production of food grains has increased considerably post-green Sharon Dijksma, Agriculture Minister, Dutch 14 revolution and a sizeable amount of money has been invested on agriculture INTERACTION and allied sector post-independence, there is not much improvement in the socio- State Scan 38 economic condition of farmers in India. Is it a matter of resource crunch or is it Seed management is imperative to a crisis of political will power? boost production Vinod Kumar Gaur, Chairman & Managing The other day I was listening to a speech of the Union Agriculture Minister. He Director, National Seed Corporation Arunachal can be India’s Granery rightly said politics is an integral part of democratic set up and political parties Agriculture Minister, Chowna Mein INTERACTION want the welfare of farmers, but sometimes it is the level of sincerity on the part of political managers that varies. 16 Harvesting a good harvest News Snippet What really matters is the political sincerity when it comes to planning for growth Mayank Dhanuka, Director, Origo Commodities Mega Food Park scheme upgraded of agriculture and progress of farmers. It is the need of the hour to review policies, reassess role of research institutes and emphasise on extension services. Exchange of right information among all partners viz. farmers, policy makers and traders, SPECIAL INTERVIEW 40 Food Processing mission launched 18 Cold Chain facilities to get warm welcome holds the key to the growth of agriculture and allied sectors in India. Mega Food Park launched in Assam We want to make farming Reform in APMC act is also long overdue. The concept of a national agriculture profitable for farmers Cane farmers to get their arrears market in India is a step in right direction. The main challenge, however, lies in José Graziano da Silva re-elected how to implement it without jeopardising the federal structure of the country. Union Agriculture Minister Radha Mohan Singh FAO Director-General 41 The Indian food industry, which is poised to grow exponentially, accounts for Farmers to get instant weather alerts about 32 per cent of the country’s total food market. The role of the government Digital Agriculture NABARD to build godowns in the development the food sector is crucial in encouraging joint ventures, foreign collaboration, industrial licenses and 100 per cent export oriented units. 22 150 cold storage units in Odisha by 2019 In the wake of the Maggie row, it is critical to adopt food safety and quality assurance mechanisms to protect the health of consumers and keep the industry Invest in IT to boost agricultural services 42 Grow safe food campaign Vodafone launched ‘KisaanMitr’ technologically abreast of best international practices if it wants to compete Dr Saravanan Raj & Suchiradipta Bhattacharjee globally. Making a healthy soil Research MoU for veterinary medicine Bank & Insurance 25 500 crore Price Stabilization Fund to be set up 43 There’s no business like Mahindra’s tractor sales decline agribusiness editor@smartagri post.com Maggi row fallout: ASSOCHAM seeks PM’s 44 Rana Kapoor, the founder and CMD, Yes Bank intervention National Dairy Plan Extended 2 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 3  COVER STORY and allied sectors in the 12th Plan, the growth registered in the first year, 2011-12 was 1.2 per cent, 3.7 per cent in 2013-2014 and 1.1 per cent in 2014-15. There was a time when agriculture was the most preferred of professions, but over a period of time, its attractiveness had declined to rock bottom. With the right incentives and actions, this trend could be completely reversed,” said Prime and paucity of integrated approach Kissan on Doordarshan and the Minister Narendra Modi, at the towards development of farm sector. Unified National Agriculture market. launch of Doordarshan’s agriculture There are serious imbalances in The policy announcements are the focused channel, DD Kissan. input and output regime at policy key indicators of the vision and Two third of the population of the levels. mission of the government. country still depends on agriculture The biggest challenge is to It is a good initiative to issue soil directly or indirectly for their ameliorate the conditions of farmers health cards to nearly 14.5 crore livelihood. However, the socio- which require much needed reforms farmers’ families across the country. economic conditions of farmers and educating the community. The government provides assistance have not improved significantly. Policy Initiatives to state governments for setting up Rather, the woes of farmers have soil testing laboratories, fertiliser increased with uncertain weather, The BJP led government at Centre testing laboratories as well as Indian Agriculture lack of technological knowhow has initiated certain good decisions implementation of organic farming and low price discovery of farm during last one year such as soil projects across the country in order produces. health card, Pradhan Mantri Krishi to promote soil health management. Sinchai Yojana (PMKSY), crop It has been seen that excess use What has added to the worsening insurance, skill development, the DD situation is the lack of political will of urea has led to depleting soil Challenges and Opportunities Indian agriculture needs to get a steroid shot, if the country’s economy has any hopes of growing at double digit rate. While the new dispensation at the Centre, led by Prime Minister Narendra Modi, has initiated several measures to boost agricultural growth, a lot more needs to be done, and fast, points out Pravash Pradhan, Editor, Smart AgriPost Preface No doubt, India has moved from a food deficient country to food sufficient country in last seven decades, thanks to the Green Revolution which helped increase agriculture production and provided impetus to research and farm mechanisation. Ironically, the growth rate of agriculture sector declined year on year. According to the Economic Survey 2015-16, as against a growth target of 4 per cent for agriculture 4 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 5  Water management is essential to minimise the impact of vagaries of weather on agriculture in the country. However, if you study Economic Survey 2014-15, you will find “Indian agriculture is still heavily rainfall dependent with just 35 per cent of total arable area being irrigated and distribution of irrigation across states is highly skewed”. There are serious regional imbalances in irrigation patterns in the county. Time to time initiatives such as Accelerated Irrigation Benefit Programme (AIBP), amalgamation of the Command Area Development programme with AIBP and national health and polluting environment, water grid for transferring water thereby affecting soil fertility and The quality of seeds from surplus areas to water deficit productivity. accounts for 20-25 per areas have been taken. The PMKSY is meant for creating cent of agricultural sources of assured irrigation, per Under the AIBP which was started The farmers are in 1996-97 for the completion drop-more crop and harnessing productivity. Seed not aware of the of incomplete irrigation schemes, rain water at micro-level through industry in India is Rs67195.47 crore of central loan technological ‘Jal Sanchay’ and ‘Jal Sinchan’. assistance or grant has been Department of Agriculture, Ministry growing at 12-13 per advancement in released upto 31 December 2014. in the country barring a few states. MNCs have entered in production of Water Resources and Department cent annually. An irrigation potential of 83.03 lakh What are the reasons? and distribution of seeds. irrigation; many of Land Resources have been ha is reported to have been created assigned to implement the project. The big dam projects in the country The Economic Survey report sites farmers still opt for have not been successful. Issues ‘An overall requirement of 343.55 Given the past history of like land and rehabilitation of lakh quintals of certified/quality traditional way of implementation of a government scheme,this needs inter-departmental those displaced delay the projects, seeds for 2014-15 (Kharif and Rabi) irrigation like well which has led to cost overrun. is estimated by the states. Against coordination which certainly looks Consequently, projects have been this, 351.76 lakh quintals of certified water and lower crop like a herculean task. stalled for want of funds. seeds are available.’ realisation have added Among others, the National Agriculture Market which envisages Post-Green Revolution, adoption of There is a fierce debate going on to slow penetration micro irrigation systems like dri ps the introduction GM crops in the an era of ‘one state one market’ and sprinklers has significantly country. Is the government serious of irrigation in the is certainly appreciable. Since agriculture is a state subject, increased. Again, the distribution of enough to produce quality seeds? country. micro irrigation varies from state to Are the public companies well governed by different APMCs across state. The farmers are not aware of equi pped to compete with MNCs? the country and opaque tax and the technological advancement in levy systems, it requires sincere Fertiliser is one of the main inputs urea and DAN/NPK. Subsidy in irrigation; many farmers still opt for effort to create one market that will helping increase in yield. India fertiliser also contributes excess and traditional way of irrigation like well be virtually connected through an is the 2nd largest consumer of mindless use of urea. water and lower crop realisation e-platform. fertiliser in the world. Consumption have added to slow penetration of Thus it is essential to maintain exceeds production in the country. Along with creating necessary irrigation in the country. balanced micronutrient levels in Balanced use of fertiliser enhances infrastructure for the e-market soils for sustainable agriculture. Seed is the basic input for enhancing productivity of soil. platform and imparting training to Farm Inputs Rationalisation of subsidies and under the AIBP by states from agricultural production. The quality all stakeholders, the supply chain But there is excess use of urea better targeting of beneficiaries major, medium, and minor irrigation of seeds accounts for 20-25 per and storage facilities are required When we talk about increasing witnessed in the country, thereby through direct transfers would projects till March 2013. cent of agricultural productivity. to be strengthened. The government yield, inputs like soil, water, seed affecting the health of soil and generate part of the resources for the and fertiliser are to be taken into In spite of all, there is not much Seed industry in India is growing policies in this regard should be leading to low productivity. There public investment that is essential consideration. improvement in water distribution at 12-13 per cent annually. Many made simple and transparent. is a huge gap between prices of in research, education, extension, 6 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 7  INTERACTION of storage capacity. Recognition Micro irrigation can and policy level support to private Warehouse Service Providers (WSP), multi plicity of licenses and laws for increase farmers’ WSP and non-transparent taxes and levies are need to be looked into. Courage to Act income by 50% Time has come to reassess government policies and schemes. Agriculture must be treated as a modern day enterprise. It needs big bang reforms in both input and post-harvest management. Over the The 6000 crore Jain Irrigation Systems years political managers have either Ltd is India’s leading company in micro deferred or failed to bring necessary and drip irrigation. In an interview to reforms to boost agriculture and allied sector. Smart AgriPost, the company’s Managing Director, Anil Jain, speaks about why, despite its initial high cost, drip irrigation irrigation, water management, soil testing,warehousing and cold storage. remains the Indian farmer’s best bet to Distortions emerging from various increase his farm productivity. policies , including , exempting user charges for electricity and water need to be reduced , through better What are the key challenges in Micro irrigation has with operational issues such as targeting and eliminating leakages. drip irrigation in India? clogging, inconsistent oversight and Output Regime demonstrated increase excessive documentation. The first is the ability and Post-harvest management is very willingness to make the initial in water use efficiency Micro irrigation has demonstrated investment. However due to low increase in water use efficiency up much crucial for high discovery up to 80% to 90%, of prices of commodities. There is cost of traditional way of using to 80% to 90%, increases in the huge post-harvest loss in India. The the well water, lesser awareness increases in the productivity and yields of crops, loss in grains is as high as 10 per of the technology and lower crop productivity and yields reduces soil erosion and reduction cent while in case of perishable realisations farmers continue to in ground water pollution amongst items, the loss is as high as 30 to 40 use defer decision of adopting of crops, reduces soil other benefits. facility is limited not only in terms It is time to stop holding hands of micro irrigation technology. Other erosion and reduction in per cent. Who is the ultimate loser? Is the Central government’s of capacity but also to certain farmers. It is time for rationalising challenges include relatively smaller Both farmer and the end consumer. decision to construct short term crops. The stockholding capacity subsidies,checking leakages,providing land holdings, crop rotation issues, ground water pollution The average price Indian farmers farm ponds to tide over deficient has not kept pace with the increase resources and infrastructure for the availability of electricity and dealing amongst other benefits. realise is 30 to 35 per cent of the rains this year a feasible option? in production and demand for a betterment of farmers. consumer price in comparison to long time. Cold storage capacity Short term Farm Ponds is essentially 50 to 65 per cent in developed About 59 per cent of farmers do for all types of food items is just a measure adopted for water countries. The reasons of low not get much technical assistance 29MT (planning commission 2012). storage and more targeted for rain- discovery of prices may be many. and know-how from government- fed agriculture which accounts The important ones are insufficient In the present scenario, the funded farm research institutes or for almost 50% of the total farm supply chain, regional imbalance of challenges before farmers for better extension services. So they have to land in the country. It refers to storage and lack of value added price realisation are the produce rely on progressive farmers, media, harvesting surplus runoff in dug out infrastructure. financing,market linkage and storage and private commercial agents ponds and recycling the same for facilities. It is observed also value such as dealers of farm inputs like The total capacity available for providing supplemental irrigation to addition at preliminary processing seeds, fertilisers and pesticides for storage of food-grains as on 30 kharif crops or pre-sowing irrigation adds 5 to 10 per cent to the sale technical information. To ensure November 2014 was 727 lakh MT, to rabi crops. with minimum charge. last mile connectivity, extension comprising covered godowns of 567 services need to be geared up to Due to uneven rainfall (i.e., extreme lakh MT capacity and cover and Policies to promote private address emerging technological and rainfall on some days and dry spells plinth(CAP) facilities of 160 lakh MT investment in scientific storage are information needs. thereafter) and depleting water levels, capacity. The existing warehousing important to bridge the gap between Farm Ponds can act as a saviour the requirement and availability 8 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 9  INTERACTION Today any and every efficient during such dry spells. Today any per use’. Importantly, it could cover method for saving and every efficient method for the otherwise uninformed farmers the water and its saving the water and its utilisation in with benefits of micro irrigations utilisation in farm, farm, fodder and growing vegetable and increase its penetration which is crucial for sustained farming and fodder and growing is still less than 10%. could be explored and re-invented vegetable is crucial 4. How effective is the further. Farm Ponds are one of the groundwater irrigation that for sustained cost effective options. developed during Green revolution? farming and could What is the reason for the failure Green revolution was one of the be explored and re- of large scale irrigation projects? invented further. most important movement in There have been concerns around Indian history with was directed the large irrigation projects since it towards addressing world hunger, in the cropping pattern from mono- requires large scale land acquisition industrialisation of agriculture, cropping to inter-cropping, thereby We need to address the and displacement of habitats. Media impetus to R&D and farm improving quality and quantity of reports also highlight other concerns mechanisation. However, in the long yield. Results may range from a including cost overruns due to run it has certain ill effect for the 20-50% increase in a partici pating inadequate planning, undue delay in seasons such as excessive use of farmer’s earning potential. problem of excess land acquisition and non-finalisation groundwater to produce high yield. What’s solar powered irrigation? of rehabilitation policies. We are given to understand that this What’s its future in India? has resulted into depletion of water urea usage However, the importance of large tables, higher arsenic in the water, Solar pumps offer a powerful scale projects cannot be ignored negative impacts on soil quality, etc. solution to the prevailing problem and rather require a special stress, as of erratic power supply in the farm they provide last mile connectivity Do you think irrigation should be sector in the country. In December in the canal development and water linked to the cropping pattern of 2014, the Government with the transportation programmes. Under a locality? help of NABARD has approved India’s farms need to balance out the usage of urea through a mix and match the traditional methods waters used Agricultural productivity is a programme for about 30,000 with other nutrient sources, such as bio-fertiliser, manure and compost, to flow through open canals and farmers were drawing such water dependent upon various factors pumps across India. Presently, India if the country wants to sustain its agriculture and not turn farmlands into such as soil properties, climatic up to its farm land. This resulted has nearly 26 million groundwater wastelands, says Dr U S Awasthi, Managing Director, IFFCO, in an interview conditions, irrigation facilities, pumps on farms which suffer from in significant water loss due to seed quality and variety, cropping high fuel costs. Switching those to Smart AgriPost evaporation, percolation and loss pattern, techniques of farming and to solar pumps would result into during the transit. Further,monitoring prevention from pests. substantial saving. the water usage and its effectiveness is a challenge. Under the today’s In our research and experience, As per market sources, the market large projects, the government or micro irrigation can be adopted for diesel pumps in India was nearly multilateral agencies can create a to any cropping pattern subject to 2 million pumps in 2013, whereas large pi peline structure which is appropriate design changes while only 15,000 solar pumps were sold, connected to Micro Irrigation Systems laying down the system. In fact, indicating huge potential for the at farm level and farmer can ‘pay micro irrigation has led to a shift product in the country. 10 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 39 11  What is the fertiliser demand and Product Demand (Require- Supply (Availability) Sales  The government needs to improve supply scenario in India? ment)April’14 to April’14 to Feb.’15 April’14 to Feb.’15 targeting of subsidies and eliminate Feb.’15 leakages through direct benefit Ans:-Fertiliser consumption trends Urea 296.50 286.79 284.14 transfer (DBT) using JAM [Jan Dhan expressed in terms of aggregate DAP 92.88 72.16 67.56 Yojna (JDY), Aadhaar and Mobile quantities consumed and intensity MOP 28.59 28.78 24.98 numbers] platform. The government of use (i.e., kg per hectare of total Complex 94.27 84.54 76.32 has rightly claimed that this alone cropped area) reflect both demand will save 25-30% in subsidy. DBT and supply decisions. Therefore, it is a revolutionary concept whose is essential to understand fertiliser implementation will not only yield situation in the country. India substantial saving in subsidy by is the second largest consumer curbing leakages but also end of fertilisers in the world, after distortions in resource allocation and China. It accounted for 15.3 per inefficiencies in supply chain. It will cent of the world’s Nitrogenous also go a long way in empowering (N) consumption, 19 per cent of our farmers as well. other raw materials, unambiguous Phosphatic (P) and 14.4 per cent of Potassic (K) nutrients in 2008. What are the main challenges Excess use of urea, huge subsidy policy- implementation of The rapid expansion of irrigation, of fertiliser management in the gap in the prices of urea DBT to farmers, clarity and ease spread of HYV seeds, introduction of country? and DAP/NPK fertilizers in procuring land for setting up Retention Price Scheme, distribution greenfield projects, cheaper credit Ans:-Excess use of urea, huge gap due to an unclear subsidy and less bureaucratic control are of fertilisers to farmers at affordable prices, expansion of dealer’s network, in the prices of urea and DAP/NPK policy, lack of farmer some of the measures that should fertilizers due to an unclear subsidy improvement in fertiliser availability awareness , shortage of be undertaken on a priority basis policy, lack of farmer awareness , were major reasons for increase shortage of gas and raw materials are gas and raw materials are if the government is serious about in fertiliser consumption till 1990. encouraging private investment and some of the challenges of fertiliser some of the challenges of FDI in the fertiliser sector. The fertiliser consumption in India has generally exceeded domestic management in the country. fertiliser management in What measures need to be taken production in both nitrogenous and What is scope of private the country. to make agriculture sustainable in phosphatic fertilisers except for few investment/FDI in fertiliser sector? India? years. The entire requirement of Farmer use excess urea to increase Ans:-There have been no major potassic fertilisers is met through There is an urgent productivity. In long run, it will have investments in the fertiliser sector Ans:-There needs to be an imports as India does not have need to rationalise negative impact on environment since a decade. Building of improvement of existing production commercially viable sources of as well as production. How could industrial infrastructure – roads, ports, systems, like altered crop rotations, potash. During 1950s and 1960s, subsidies. It should it be checked? introduction of green manuring and railways, long term arrangements use of plant species adapted to about two-third of domestic be directed straight to Ans:-Rationalising the prices of Urea for undisrupted supply of gas and specific locations. Additionally, there requirement of N fertilisers was and bringing them in line with the met through imports. Rising share our farmers instead needs to be improved protection of market prices will go a long way natural resources to safeguard against of imports is a matter of concern to manufacturing in addressing the problem of excess erosion and balanced fertilisation. as world fertiliser markets are use of urea. The huge gap that highly volatile and imperfect. This companies. The We also need to increase the exists between the prices of Urea efficiency of existing resources, such growth must be sustained, increased, government needs and DAP/NPK fertilizers also needs and expanded to achieve levels of as irrigation and encourage use productivity needed to significantly to improve targeting to be bridged in order to prevent of technology through basic and imbalanced fertilisation of soil. advanced training. There needs reduce poverty in the region. The of subsidies and Apart from that mix & match of average intensity of fertiliser use in to be optimisation of post-harvest India at national level is still much eliminate leakages crops to make better crop rotation, systems like storage, improvement use of bio-fertiliser, organic, green of channels of distribution such as lower than in other developing through direct benefit manure & compost will help to do countries but there are many direct market access to farmers and disparities in fertiliser consumption transfer (DBT) using sustainable agriculture. transport, access to cheap micro patterns both between and within JAM [Jan Dhan Yojna What is your view on subsidy in finance loans and other financial regions of India. fertiliser in India? services and Covering crop loss risk (JDY), Aadhaar and through land law and support of Ans:-I feel there is an urgent need Mobile numbers] producer groups in order to make to rationalise subsidies. It should agriculture sustainable. platform. be directed straight to our farmers instead to manufacturing companies. 12 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 13  INTERACTION Seed management is imperative to boost production Development and management With entry of of seeds can play a critical role MNCs in seed in boosting food production, says Vinod Kumar Gaur, production and Chairman & Managing Director, distribution and National Seed Corporation, in consequent effects an interview to Smart AgriPost. of patenting under NSC produces the WTO regime, some crop varieties providing quality having resistance Ans. NSC has pan-India presence of national importance which are What is the Role of NSC? We also offer Training and to moisture stress and produces seeds of 580 varieties recommended for more than one Ans. Established in 1963, NSC was Consultancy for overall Development seeds to farmers of 60 crops of cereals,pulses,oilseeds, State in process to supplement all to farmers and seed men in seed or cold stress. We tasked with production, processing production technologies, training at an affordable have enough seed fodders, fibres and vegetables having SSCs. and marketing of quality seeds. suitability in varied climates. NSC It helps in popularisation of use on Seed Processing, Seed Quality cost will be a to supplement produces some crop varieties having The government and NSC are Management, Seed Certification encouraging states to sign MoU of quality seeds, establishment of to Technical staff of Government major challenge in to SSCs in resistance to moisture stress or cold with seed production agencies of State seed corporations and State meeting State’s stress. We have enough seed to Seed Certification Agencies, framing and Private seed companies, future. supplement to SSCs in meeting State’s States and Centre in advance so of seed Policies and Standards, assist in creation of infrastructure requirement. requirement. To meet the challenges that fulfilment of their requirement facility, processing units and farm assured. development of field and Lab development, and popularise seed during drought condition, flood , etc., Standards and procedure for ‘Seed good quality seed is crucial for Seed Bank, which is government of Please tell us the present production in non-traditional areas. Certification’ and acts as the nodal accelerated food production. With is mainly dealing in “High Volume India Scheme has adequate seed to performance of the company and agency for implementation of What are the challenges in the entry of MNCs in seed production Low Value” crop seeds, the private meet any eventuality. future plans? Infrastructure Scheme for boosting proliferation of agricultural seeds? and distribution and consequent sector is dealing in hybrid seeds. Indian agriculture highly depends Ans. Seed Industry is growing at seed production in private sector effects of patenting under the WTO As far as NSC is concerned, we are Ans. In agriculture, multi plication, on various local factors like 12-13% annually. Share of Farm and registration of firms for import regime, providing quality seeds to making available hybrids from both distribution and availability of small holding lands, fertility and Saved Seeds is 75% and supply of seeds. farmers at an affordable cost will public and private sectors through monsoon. Do you produce seeds contribution (By volume) by public be a major challenge in future. In our marketing channels with MoU. according to the local needs? sector is 55% and private sector is the present time, unpredictability of What is your view on GM Crops ? How do you meet farmer’s needs? 45%. NSC share amongst public monsoon, requirement of different sector seed companies about 12%. seeds suiting to rainfall pattern are Ans. The subject needs highly Ans. Yes, the mechanisation gets With merger of NSC and SFCI, we major challenges that need to be scientific understanding and NSC affected by small holdings. Co- are making our farms sufficient addressed. as a commercial organisation is not operative ventures do bear fruit but enough to produce breeder seed appropriately placed to comment on very late. Individual farmers do not Many Multi-National Companies and foundation seed, so that certified it and matter is under consideration have capacity to make all required are eying on Indian market. seed production is undertaken in of expert group. arrangement by themselves. But still, How are you prepared for the uninterrupted way. Result of this the policy of “Production by Masses” competition? According to India Meteorological would be visible in 2-3 years and has certain advantages over “Mass Ans. In the present scenario, Department., there might be a NSC is poised not only with the Production by few”. Seeds for local hybrid seeds are dominating in crops drought like situation in some parts responsibility of making available needs are produced by various State like paddy, cotton, maize, vegetables of the country. In that scenario, seed but aims at providing total Seed Corporations. NSC mainly and millets. While the public sector do you have enough seed stocks farming solutions to farmers on concentrates on varieties that are to meet the challenge ? ownershi p basis. 14 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 15  INTERACTION causes the seller’s prices to be low during the season time. As the season progresses and commodity Harvesting a good harvest consumption starts, the prices usually start to rise (barring any other factor impacting the price) due to increased demand and constant supply. Given that farmers are under financial obligations throughout the year, selling the commodity to them Part of India’s hunger problem is its inability to offer is the best solution and probably efficient storage facilities for its harvested food grains the only solution towards fulfilling those obligations. and fruits and vegetables. Existing storage facilities Involving private are woefully inadequate. Mayank Dhanuka, Director, Warehouse Recei pt Financing helps warehouse service to monetize the produce without Origo Commodities India Pvt Ltd, tells Smart AgriPost actually selling it. Farmers can providers will about post-harvest management scenario in India. deposit their goods in warehouses not only benefit such as Origo’s facilities and obtain consumers, but also How are you different from the a recei pt for the quantity/quality help farmers with a middlemen or private mandis who deposited. Against this recei pt, higher return on their provide similar kind of services? farmers can get obtain upto75% financing which can meet their produce. A. We believe that all the ecosystem financial obligations in the interim. partners including middlemen or private mandis are relevant, but How are you helping in post financing and market linkgages. Now, whenever the price is right, ISO 9001:2008 Certified and one making the supply chain inefficient. Warehouse harvest management? In the existing supply chain, the the farmer can sell his goods and be able to get the right price. In of the labs is likely to attain the We suggest that the government major challenges for better price A. In India, an average of nearly should construct integrated supply Receipt realization for farmers are the our experience this price differential highest accreditation i.e. NABL 15% of grains and close to 40% can be as high as 20%, which is (National Accreditation Board for chain centres (warehouse + value Produce Financing (Warehouse Financing or of perishables are wasted due very positive for farmers. Testing & Certification Laboratories) add infrastructure) and declare Recei pt Financing), Direct Market to improper infrastructure and warehouse as a marketplace with having access to inefficiencies in the supply chain. Accessibility and Lack of Storage. Will a better post harvest accreditation shortly. This robust certain value add infrastructure, network allows us to test and grade end consumer Origo Commodities was created to The inability of farmers to monetize management system enable most of the agriculture commodities physical and online auction direct efforts towards reducing these the produce post harvest either farmers to get a good price for platforms. Even the MSP procurement of his goods, inefficiencies in the supply chain. through Warehouse Recei pt Financing their produce, and how? being stored in our warehouses by FCI / State agencies can be across the country. forces them to or having access to end consumer of A. Yes,the average price that farmers undertaken at the warehouses Origo’s business model extends his goods, forces them to sell their What do you say about which can save transaction, sell their goods all the way from procurement goods to the first intermediary that realise in India is around 30-35% government policies regarding handling and transportation cost to at the farm gate from farmers, of consumer prices, as opposed to post-harvest management? to the first transportation of that commodity to shows up at their doorstep, at very 50-65% in most of the developed the government. These integrated low prices. This sale of goods, termed A. While the Government seems centres can bring farmers closer to intermediary our warehouses, quality certification “Distress Sale” leads to low price countries. The main reason behind to be keen on PPP projects in buyers, with required value-adds for of the commodity, scientific storage, is a highly inefficient supply chain that shows up and to warehouse recei pt financing discovery on the harvest. and the regional imbalances of the fields of Warehousing, Silos, better price realisation. storage and value-add infrastructure. PMS (Preservation, Maintenance at their doorstep, so that farmers can monetize their Another factor that prevents farmers and Security of food grains), MSP There are more than 7,500 APMC produce and market linkage. The from realizing the right value of The farmers produce moves through mandis or yards across India, each at very low company helps enable farmers to their produce is the value addition. a long, inefficient supply chain procurement from farmers etc., we with its own set of rules and including aggregators, commission would like to highlight some very prices. sell their commodities at the right Preliminary processing adds important policy issues that should regulations and covering an average price to the end consumer without approximately 5-10% to the sale agents, traders and processors to area of 450 sq km. These mandis intermediaries. price with minimal charges to the consumers, without much value-add be addressed as soon as possible in not only control the entire trade of farmers. in the system. order to achieve these objectives. agricultural goods but also have a Origo operates across three business These are Recognition and policy What’s collateral management? How do you grade quality standard significant bearing on the final price verticals - Procurement, Warehouse level standing to Private WSP How will it help farmers’ price of agriculture commodities? of the produce. However, due to Management and Collateral (Warehouse Services Providers), discovery? insufficient coverage and inefficient Management. A. Origo operates a network of Multi plicity of licenses and laws for price discovery, several states have What are the key challenges in A. At the time of harvest, there is five stationary labs mapped with WSPs, Lack of clarity on service tax, done away with APMC mandis. In India in post harvest management? usually an oversupply of agriculture a network of over 200 field level Unacceptable Storage Loss Norms fact,the government has now allowed commodity in the mandis/markets. labs across 15 states in a hub and Quality Testing and MOU the creation of private mandis. A. Very often farmers deal with and spoke model. All the labs are (Measurement of uncertainties). The imbalance in supply demand multi ple challenges that include 16 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 17  SPECIAL INTERVIEW How do you plan to revive Horticulture (MIDH), National of organic farming and export of agricultural growth which is less Mission on Oilseeds and Oil Palm organic produce. than 2 per cent now? (NMOOP) and Grameen Bhandaran Apart form PKVY, government has Yojana, for raising investments in Ans. Growth in Gross Domestic enhanced subsidy amount for agriculture. In addition, Government Product (GDP) depends upon the individual farmers to promote the has issued a framework for Public output of agriculture and allied use of bio-fertilizers from Rs. 100 Private Partnershi p for Integrated sector which include field crops, to Rs. 300 per hectare w.e.f. 2014- Agriculture Development (PPPIAD) horticulture crops, animal husbandry, 15 under National Food Security for using RKVY allocation for forestry & logging and fisheries. Out Mission. greater association of private sector of these, field crops and horticulture What’s the progress of “Pradhan in agricultural development projects crops are highly dependent upon Mantri Krishi Sinchai Yojana”? in the States. weather, rainfall situation etc. As 52.4 % of area under cultivation Agriculture sector has been identified Ans:- The objective of ‘Pradhan is still rain-fed, monsoon rainfall by Government as priority lending Mantri Krishi Sinchai Yojna’ is to has significant role in production sector, which constitutes at least create sources of assured irrigation- of crops and also on the output 18% of the total loan portfolio of per drop, more crop-and harnessing of other allied sectors to certain the banks. Crop loans are provided rain water at micro level through extent. Climate change has also to farmers at a concessional rate ‘Jal Sanchay’ and ‘Jal-Sinchan’. It will emerged as an important factor of 7% per annum with 3% interest lay stress on end- to-end solution in causing serious impact on output of subvention for timely repayment. irrigation supply chain. crop sector. Post harvest loan is also available In 2014-15 budget, ₹1000 crore was to farmers on the basis of negotiable allocated to start the scheme. A total We have taken various initiatives warehouse recei pts for a period of of ₹5300 crore has been allocated under different crop development six months on the same terms so as for the year 2105-16 to roll out the schemes to increase output of to prevent distress sales. scheme. To make it successful, our agriculture and allied sector. The ICAR has been fully engaged in How do you plan to encourage department along with other related development of high yielding, pest organic farming? departments reviews the progress resistant, short duration varieties and implementation of the scheme. Ans:- As you know, our government suitable for different agro-climatic is committed to promote Organic What is your government’s plan to conditions. In order to minimize the Farming which improves soil health check Post-harvest losses? impact of delayed or deficient rainfall, and leads to better quality crops. Ans:- As per the Millennium We want to make the ICAR has prepared contingency From 2015-16, ‘ Paramparagat Krishi plans for more than 600 districts Study-State of the Indian Farmers Vikas Yojana’, a new scheme to Report (2004), annual losses of food of the country. To minimize the develop organic clusters and make adverse impact of climate change, grains in India were estimated to farming profitable available chemical free inputs to be 9.33% of production while for the government has taken important farmers will be implemented with initiative in the form of National fruits and vegetables; it was 25- an outlay of Rs. 300 crore. 40%. It is important to note that Mission on Sustainable Agriculture Groups of 50 or more farmers having reduction in post-harvest losses over for farmers (NMSA). Through above initiatives, our Ministry is trying to minimize 50 acre land would be motivated the period has been noticed due to the impact of adverse conditions on to take up organic farming under development and adoption of better the production and maintain growth Paramparagat Krishi Vikas Yojana post-harvest management practices. of agriculture & allied sector on (PKVY). Losses in selected cereals (paddy, sustainable basis. wheat, maize, bajra and sorghum) India needs a massive overhaul of its agricultural infrastructure and practices if PKVY scheme envisages promotion are observed to be in the range How do you propose to make of commercial organic production it wishes to achieve double digit growth and to provide two square meals a day farming more attractive and through certified (self certification 3.87% to 5.96%. while in case of selected pulses (pigeon pea, chick to every single constituent of its billion plus populace, and Union Agriculture profitable? by producers) organic farming pea, black gram, green gram), it is and adoption of organic village Minister Radha Mohan Singh admits as much, saying the government is Ans:- In order to make farming by cluster approach. In PKVY, the 4.28 to 6.06%. In case of oilseeds, more attractive and profitable, it is in the range of 5.77 to 18%. implementing a multi-pronged strategy to boost crop production and reduce we are implementing schemes farmers in one cluster of 50 acres Presently, storage capacity with land will get financial assistance. post-harvest losses due to poor storage. Excerpts from a special interview to such as Rashtriya Krishi Vikas different agencies (FCI, CWC, SWC, Yojana (RKVY), National Food A special scheme with allocation of Cooperative) including private sector Pravash Pradhan, Editor, Smart AgriPost: Security Mission (NFSM), Mission Rs. 125 crore has been launched in is 135 million tonne in the country, for Integrated Development of North-Eastern Region for promotion which is, of course, insufficient for 18 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 19  the objective of conserving and National Agricultural Insurance developing indigenous Breeds in Scheme (NAIS) and National Crop a focused and scientific manner Insurance Schemes (NCIP) with with an allocation of Rs 500 crore three component schemes namely, during remaining three years of Modified National Agricultural 12th Plan. The Government is also Insurance Scheme (MNAIS), establishing two National Kamdhenu Weather Based Crop Insurance Breeding Centres as Centre of Scheme (WBCIS) & Coconut Palm Excellence (CoE) for development Insurance Scheme (CPIS) are under and conservation of indigenous implementation in the country. breeds. For this purpose Rs 25 crore What are the specific measures interventions to sustain agriculture About 25% gross capped area is storing marketable surplus of existing FCI, as far as possible, will open each has been released to Madhya the government has taken to production in the eventuality of insured under aforesaid schemes. To production (265.04 MMT of Food its procurement centres in larger Pradesh (NKBC for northern region) transform the fisheries sector? weak monsoon/deficient rainfall. provide awareness and to increase Grain, 19.25 MMT of pulses and numbers, and where they can’t open and Andhra Pradesh (NKBC for Ans:- India has made great strides the outreach of the schemes, an States are advised to ensure 32.75 MMT of Oilseeds). We are their centres, the private agencies southern region). The National in the area of Fisheries and is the insurance portal has been developed availability of short duration and trying to improve storage facilities will be roped in. Apart from this, Dairy Plan with World Bank second highest producer of fish in wherein all stakeholders including drought tolerant varieties of seeds through improvement of post-harvest training would be imparted to State assistance targets the conservation the world with the production over farmers, states, insurance companies so as to be in a position to supply infrastructure through schemes like Governments on quality and storage of 6 breeds of cattle (Hariana; 10 million tonnes (2014-15). and banks can get all requisite them to farmers in case such a Mission for Integrated Development from time to time. Rathi; Tharparkar; Gir; Kankrej and information.. The Blue Revolution visualizes the need arises. States have also been of Horticulture (MIDH), Rashtriya Sahiwal) and 6 breeds of buffaloes What are the steps being taken to As regards benefit of the Crop creation of an enabling environment advised to keep asides 10% of Krishi Vikas Yojana (RKVY), Venture (Murrah; Mehsani; Pandharpuri; encourage indigenous breed of Insurance Schemes are concerned, focused towards an integrated and funds available under Rashtriya Capital Scheme of Small Farmers Jaffarabadi; Nili Ravi and Banni). cattle? from Rabi 1999-2000 to Rabi 2014- holistic development & management Krishi Vikas Yojana (RKVY) and Agri. Business Consortium (SFAC) Under the scheme funds have 15 cumulatively, 31.97 crore farmers approach for the growth of the other schemes for undertaking and schemes of Ministry of Food Ans:- As per 19th Livestock Census been released to end implementing have been covered over an area fisheries and aquaculture sector appropriate interventions to mitigate Processing. We are also working the country has 10.87 crore agencies for implementation of of 45.91 crore hectares insuring in the country, keeping in view any situation arising out of deficient on reducing the supply chain of buffaloes,19.09 crore cattle, 30 lakh progeny testing and pedigree a sum amounting to Rs. 5,29,594 the bio-security and environmental rainfall. Agricultural produce and multi ple Mithuns and 77 thousand Yak. Of selection for indigenous breeds. handling through advocacy of 19 crore cattle, 20% are exotic We have also implemented Central crore. Total premium of Rs. 2559 concerns. States have also been requested to marketing reforms. Additionally, the and crossbreds (3.9 crore) and Herd Registration Scheme (CHRS) crore has been collected against the The main objectives of the Blue construct water harvesting structures, government is conducting training about 80% are indigenous breeds for identification and propagation claims of ₹45645 crore benefitting Revolution are to increase the overall restore irrigation infrastructure by and awareness programmes for (15.12 crore). The cattle genetic of elite germplasm of indigenous 10.94 crore farmers under aforesaid fish production in a sustainable de-silting canals, energizing tube farmers’ skill development. resource of India is represented by breeds of cattle and buffaloes in all schemes. manner for economic prosperity wells, replacing/repairing faulty 39 registered indigenous breeds and the country and also established from the available water resources, pumps and arranging power to What is your strategy for food Improvement in crop insurance 13 registered buffalo breeds. They seven Central Cattle Breeding Farms introduce new technologies in meet irrigation needs. procurement from emerging schemes to make them more are endowed with qualities of heat located in the different parts of the the sector for responsible and areas such as Chhattisgarh, Bihar, scientific and to better serve Field functionaries and extension tolerance, resistance to diseases and country to produce elite quality sustainable utilization of resources in Odisha? the interests of the farmers is a workers under Agricultural the ability to thrive under extreme disease free bull calves. continuous process. In view of this, an eco-friendly manner, ensure food Technology Management Agency Ans:- The Shantakumar Committee climatic stress and less than optimal and nutritional security, generate What is your government’s plan Government is desirous to introduce (ATMA) and other schemes are recommended that FCI should hand nutrition. The government has employment and export earnings and on crop insurance schemes to a new comprehensive crop educating, training and making the over all procurement operations of launched a Rashtriya Gokul Mission, ensure inclusive development and protect farmers from vagaries of insurance instrument to protect the farmers aware of various techniques wheat, paddy & rice to states that a project under the National empower fishers and aquaculture weather? income of the farmers. Government to overcome deficient rainfall. have gained sufficient experience Programme for Bovine Breeding farmers. The initial results of this is also contemplating to implement Farmers are also being advised in this regard and have created and Dairy Development with Ans:- At present, two Crop restructured programmes led to an a unified package insurance to through Farmers’ SMS portal, Kisan reasonable infrastructure for Insurance Schemes namely, increase in fish production by 5.2% cover activities like machinery, call centres, Kisanvani Programme procurement. These States are during 2014-15. life, accident, health, livestock, of All India Radio (AIR) and Krishi Andhra Pradesh, Chhattisgarh house, student, children, crops etc. How is the government prepared Darshan Programme of Doordarshan. Haryana, Madhya Pradesh, Odisha Government is also reviewing the to manage drought like situation and Punjab. We are also advising farmers to financial burden of premium on in the country, if any? adopt techniques such as in-situ All States excluding Punjab farmer’ under existing schemes Ans:- Central Research Institute of moisture conservation,on farm water and Haryana are decentralized alongwith several improvements Dry land Agriculture (CRIDA), in conservation, ridge furrow sowing, procuring (DCP) States where FCI required for better administration of collaboration with State Agricultural promoting suitable agronomic is not involved in procurement. In the schemes. The Consultation with Universities has prepared practices including mulching, inter Non-DCP States, procurement plan various stakeholders including State contingency plans for 580 districts cropping, mixed cropping andsowing will be prepared in consultation Governments is going on for the for implementing location specific of less water consuming crops. with the State Governments. The purpose. 20 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 21  DIGITAL AGRICULTURE Invest in IT to boost agricultural services Information and Communication Technology can play a vital role in strengthening agricultural extension and advisory services, much as providing price alerts in real time, weather alerts and information about crop insurance schemes Dr Saravanan Raj & Suchiradipta Bhattacharjee Agriculture and ICTs and recently, climate change. Fight right information at the right time against such vicious problems to very last mile and ICTs have Agricultural development is stations, web portals, mobile based and connectivity. And with increasing need strong ally and Information the potential to reach out to most development include Kissan Call synonymous to rural development in advisory services, and some in literacy, reach of technology and and Communication Technology of them. To help the cause, its Centre launched nationwide in 2004 developing countries where majority the remote North Eastern part of awareness of farmers, the trend can (ICTs) comes as a powerful aide potential is getting more and more across 14 locations covering all the of the rural population depend on the country like e-Arik, m4agriNEI, only go upward. to EAS. Information is a critical recognition every day. states of the country and providing agriculture to feed themselves and Intelligent Advisory System for Challenges in implementation input in agriculture and given at Policy and usage of ICT in the services in local language; their nation. Taking the wheels of Farmers (IASF) speaks volumes development to them depends, to the right time, it can prove to be agriculture mKisan (http://mkisan.gov.in/) is Even though volumes can be the most important one. Moreover, the SMS based portal providing about increased use of technology a large extent, on extension and In India’s development efforts, major spoken about the potential of ICTs since inception extension and information and advisory through for development and its acceptance advisory services (EAS) and this recognition at policy level for the in agriculture, the challenges are advisory services has been facing push and pull based SMS and IVRS by the rural community. Recent puts extensionists at forefront in the potential of ICTs in agriculture and also manifolds. Major challenges for a major challenge of giving the to registered farmers from price addition of social media can also war against poverty, food insecurity rural development (RD) came in ICT projects in agriculture include alert to e-governance; AGMARKNET go a long way in increasing the 2006 separately as the National shortage of funds, unsustainable (http://agmarknet.nic.in/) web portal interaction among stakeholders in e-Governance Plan (http://deity.gov. nature of certain project and lack is displays day to day real time RAS for better information sharing in/content/national-e-governance- of a practical roadmap. market prices across the country in plan) comprising 27 Mission Mode 12 major languages with price alerts Projects (MMP) and 10 components on mobile phones to registered users to make all Government services and calculated price trends to help accessible to common people farmers make informed decisions. across the country; and through Green TV (http://www.greentvindia. Component 1 under National com/) is India’s first privately owned Agricultural Innovation Project 24 hour TV channel with shows (NAIP) (http://www.nai p.icar.org.in/) about business, commodity price, emphasizing the importance of ICTs daily updates on crops, health and in agricultural capacity development. education program for women and Major initiatives by the Ministry of agricultural technologies Initiatives agriculture, Government of India that like broadcasts through radio and need special mention in the country’s TV specifically for farmers,increasing effort to leverage ICTs for agricultural farmer specific community radio 22 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 23  BANK & INSURANCE more farmers are subscribing to. Agricultural information delivery through ICTs have brought an unique opportunity to private enterprises as farmers are becoming more inclined to quality services and sole reliance on free advisory are declining across the globe. Engagement of extension organizations Success of information and advisory delivery through ICTs depend on a large extent to its use by extension organizations, extensionists and development professionals. Also, with increased stakeholder in agricultural scenario from farm to fork, engagement of field level Rural client is diverse and so are their extensionists, agricultural officers at needs, and blanket recommendations district level, financial institutions through ICTs only repeat the old concerning rural areas like mistakes through new technology NABARD , Krishi Vigyan Kendras and don’t help any more in making (KVKs) and other institutions dealing them popular among the people. with people at the grassroots with Again, sending personalised increased ICT use becomes more There’s no business information to each client requires important for user engagement and technology and fund which becomes increased efficiency in information a major setback after the pilot phase delivery. Also, it makes them more is over. reachable to the people making the like agribusiness system more efficient. Illiteracy – both educational and technological – is another drawback Conclusion for use of ICTs like text based mobile solve many problems at the same Potential of ICTs in agricultural advisory, web portals, social media time but this does needs special development is no doubt huge but its and other e-learning platforms for attention from the policy makers success depends on more than one Yes Bank is one the few private sector banks to have a dedicated agribusiness the development of rural people. and extension professionals. factor. There are no fixed formulas team, which has benefitted the bank, helping it capture a large chunk of the Another major constraint is the cost Opportunities for private of success when it comes to ICTs country’s agricultural lending business, says Rana Kapoor, the bank’s founder companies of ICT devices among the rural and ingenuity and innovation are and CMD, in an interview with Smart AgriPost masses. While reducing cost of Private companies have an immense the two major factors that can tap mobile phones have been a boon, potential in ICT related projects in the most it has to offer. It is the As the founder of YES BANK, are significantly pushing the Bank’s other devices like computers, TV, agriculture for increasing credibility right consortium of partners, right Agriculture is among you satisfied with its progress and presence in Retail and augmenting DVD or other video players are still of services with a multi-stakeholder tweaks and right technique, backed ‘March Forward’, so far? the overseas foray with a measured lacking their presence in the rural approach. Efforts across the globe by a correct understanding of social YES BANK’s priority approach. space and ability to think out of the Ans:-The last 5 years of our 11- areas and this highly constraints the like value chain extension in ITC’s box that makes ICTs a success and areas of lending. Our year journey has seen YES BANK Successfully building an institution reach of technology in those areas. e-chaupal (https://www.echoupal. is a highly satisfying endeavor; and growing from a small sized bank But the most important factor that com/) in India, Kilimo Salama will continue to do so in the future. ARB (Agribusiness and to a , achieving robust financial though we still have many miles (https://kilimosalama.wordpress. Dr. Saravanan Raj is an Associate to go before we rest, with over still needs to be addressed is the com/) providing crop insurance Professor (Extension Education & Rural Banking) Division performances and business increased partici pation of women outcomes. 630 branches and over 11,000 YES through mobile phones to farmers in the dialogue for development Rural Sociology), is empowered to create In the third and current phase of Bankers, the journey so far has been in Kenya, iCow (http://icow.co.ke/) in extremely exciting and rewarding to through ICTs. Their access to Central Agricultural University technology is still very much Kenya helping farmers take care of (CAU) while Ms. Suchiradi pta banking opportunities growth, we want to become a large say the least. their cows through mobile messages bank in India by 2020. The strategy limited – sometimes due to social What are the main priority sectors and alerts - are all value added Bhattacharjee is a Ph.D Scholar within the agribusiness will include consolidating the bank’s and sometimes personal factors. (Agricultural Extension), Central of YES BANK for financial lending services from private enterprises presence in existing strongholds like Bringing women to the forefront in and entrepreneurs which more and Agricultural University, domain. Corporate and SME banking, while and why? technology use in agriculture can 24 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 25  ‘integrated solutions’ approach of Given the advisory, financing and hand holding dairy sector’s during the implementation stage. importance in the What have been the key highlights rural economic of Yes Bank’s differentiated approach in Food and Agri space? landscape, YES BANK had Ans:-We recently entered into a strategic agreement with the launched the YES Australian Trade Commission Kisan Dairy Plus (Austrade), to mutually collaborate as a comprehensive in business alliance and co-operate suite of financial on information-sharing and business development, syndications, lending, products for the trade finance and remittances dairy sector. among other areas. Under this MoU, Yes Bank also organized a dairy delegation to Australia last year. a part of this event we released Dairy Plus as a comprehensive suite Ans:-These are sectors where YES create banking opportunities within such as agriculture, dairy and sugar, The delegation comprising key the “Fruits and Vegetables maps of financial products for the dairy BANK has built differentiation as a the agribusiness domain. The team, among others. people from cooperative and private of India” - a highly appreciated sector. key strength. The bank has been able comprising of experienced industry dairy sector companies aimed at Why did you choose agriculture knowledge document for the industry to face the onslaught of the global and banking professionals with facilitating cooperation between In the first phase of implementation, as core area of banking? & Government alike, on planning crisis, and demonstrate to markets relevant domain knowledge and India and Australia in the areas of the Bank has collaborated with one targeted supply interventions for -- both domestic and international— skills sets in identified focus sectors, Ans:-India’s economy is predominantly Agri-Dairy business services. of the largest dairies in South India. production, processing, cold chain, that it can raise capital from quality interacts with Food & Agribusiness agrarian; with agriculture and allied An automatic milk testing machine We also entered into strategic logistics & distribution functions in global investors. clients and creates structured industries contributing 18.2% (FY installed at the partnering dairy can partnershi p with the Netherlands this much ignored high potential lending propositions for supply 2013-14) to the country’s GDP. We provide immediate inputs on the In addition to this, as we enter the Agro, Food & Technology Centre sub-sector. chain partici pants – farmers as well strongly believe in the immense quality and quantity of milk supplied next stage of growth, our focus will (NAFTC) - India,a nodal Dutch agency, as SMEs. potential of Farm Mechanization What are the Bank’s innovative by the small dairy farmer, who can be on growing our retail portfolio to work towards the development and Technology Interventions in products for farmers engaged in be paid immediately through YES with granularity. We have already There is a focus on various of farming communities, agri Agriculture Sector aimed towards Agri-Allied activities like dairy? Kisan Diary Plus, into his saving adopted a measured approach to intermediaries in the F&A supply infrastructure, agro based industries augmenting productivity in Agri and account. The farmer receives a ramp up our retail presence and chain,ensuring an access to structured and skill development initiatives Ans:-The Indian dairy sector is allied sectors, thus making Indian confirmation of payment through a offerings across the country and we and financially appropriate banking across agri and allied sectors. estimated at $70 Billion, with the Agriculture competitive on Global mobile text message, and has two intend to ramp this up further. products. Given the critical need livestock sector contributing 28- parameters. On the domestic front, YES BANK options to either leave the amount for additional agri-infrastructure 30% to agricultural GDP and Could you tell briefly about YES partnered with the Ministry of Food in his account or make withdrawals assets in the country, YES BANK Consequently, we chose agribusiness contributing 70% to livestock GDP. Bank’s loan Policy for Agriculture Processing Industries to organize a using YES SAHAJ, the Bank’s mobile took the lead in providing long-term as a focus sector, given the potential Given the dairy sector’s importance and allied sectors? National Conference on “Spurring ATM solution. structured term funding for related for growth and its multi plier impact. in the rural economic landscape,YES financing and investments in the Ans:-Agriculture is among YES projects. Our in-depth knowledge Since inception, we have believed food processing sector in India”. As BANK had launched the YES Kisan What is the bank’s policy to BANK’s priority areas of lending. of Priority Sectors has enabled us in leveraging Knowledge Capital finance food processing industry? Our ARB (Agribusiness and Rural to deliver efficient and customized as one of the key differentiators Ans:-We are a leading private Banking) Division is empowered to banking solutions to the core sectors, to develop innovative, superior player with active partici pation in and sustainable financial solutions, the development of India’s Food & based on efficient product delivery, Agri space and also own a robust industry benchmarked service levels and healthy portfolio in the food and strong client orientation to processing sector, especially in reinforce long-term and sustainable plantation crops, sugar, edible oils, partnershi ps with stakeholders. With milk processing and confectionery. these objectives in mind, the ARB Our expertise includes project was empowered to create banking funding, technical and administrative opportunities within the agribusiness project support, infrastructure domain. financing, consultation support for Agribusiness has been one of the backward - forward integration, core focus areas for the Bank credit funding for entire food supply since its inception. We follow an chain. 26 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 27  INSIGHT The strategy for development of agricultural sector through development of an agricultural marketing system, centered Profitable agriculture, around the Market Committee constituted under the State cheaper food distant and overseas markets; and In the pre-Green Revolution Marketing Legislations. changes in the form and degree period, regulation of markets and of Government intervention. Actual marketing practices was accepted The democratically buying and selling of commodities as one of the most important constituted market takes place in market yards, sub- measures for improvement of yards and Rural Periodic Markets agricultural marketing. The strategy committees with (haats) spread throughout the for development of agricultural representation from all country. There are 7,246 Regulated sector through development of Markets in the country and 21,238 an agricultural marketing system, stakeholders and farmers Rural Periodic Markets, about 20% centered around the Market were conceived to be an of which function under the ambit Committee constituted under the of regulation. State Marketing Legislations. The ideal and cohesive model for the farmers and other There is a crying need for reforms in agricultural marketing to enable the market participants to farmer to get a better deal for his produce and for the end consumer to get prosper. food at a cheaper price Gokul Patnaik, IAS (retd.) democratically constituted market committees with representation from all stakeholders and farmers Indian farmers can grow almost sector has lagged behind at only Current agricultural marketing system were conceived to be an ideal and anything under the sun. However, 2-3%. The share of agriculture in in India has undergone several cohesive model for the farmers and he is inhibited by the lack of free GDP has fallen over time and is changes over the last 60 years owing other market partici pants to prosper. and remunerative markets. There is now below 14%, but 2/3rd of the to the increased marketed surplus; Except the States of Jammu and a growing consensus to accelerate population continues to depend on increase in urbanization and income Kashmir, Kerala, Mani pur and small the pace of reforms in agriculture it for sustenance. With globalization levels and consequent changes in Union Territories such as Dadra and sector in India. While India’s overall and liberalization, there is an urgent the pattern of demand for marketing Nagar Haveli, Andaman and Nicobar GDP has grown at 6-7%, one of the need for reforms in the agricultural services; increase in linkages with Islands and Lakshadweep, all other highest in the world, its agriculture sector, particularly in marketing. 28 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 29  States and UTs in the country have chain to connect with each other enacted State Marketing Legislations. spread across the country. This The regulatory provisions are allows transactions at efficient and enforced by Agricultural Produce transparent prices, thereby reducing Market Committees, established the cost of intermediation, improve under the Act. marketing efficiency and reduction in consumer paid price. Examples With rapid changes that have taken of such virtual markets are Future place in recent years, the original exchange, Spot Exchange, Warehouse provisions of the APMC Act was Recei pt System and Web Marketing. found to be inadequate to keep The functions of these markets pace with the growing requirement. are enabled by ICT based market It resulted in a fragmented supply information. Out of the above forms chain with large number of of virtual markets, spot exchanges intermediaries known as “Aartiyas” and negotiable warehouse recei pt or commission agents. system effect physical delivery A study by Global AgriSystem of Fruit of the goods and may therefore & Vegetable supply chain in four metros (Delhi, Mumbai, Bangalore and Kolkata) revealed that, on an average there are 5-6 intermediaries between the primary producer and the consumer. The total mark up in the chain added upto 60-75%. As a result the primary producers receive only 20-25% of the consumer price. Moreover, multi ple handling by different intermediaries resulted in huge wastage of 15-25% of the value. to a large number of traders with Total mark-up in the chain* vested interests, the Model Act had Total margin - 60% to 75% not been adopted wholeheartedly by the States. Some States have Margin from farmers <25% adopted few of the selected features to wholesaler - 30-35% of the Act which has resulted in <6% Wastage - 15-25% a marginal improvement in the A virtual market enables be recognised as more effective announced the establishment of system but no paradigm shift. Bihar marketing instruments for the National Market for Agriculture as Transportation - 10% approx <10% has totally repealed the Act and producers and buyers primary producers. Producers can its objective and attempts are being <8% abolished all the mandis but it has in the supply chain hedge their goods or take pledge made to establish such a platform. also not led to a happy situation; loans against the warehouse The full outline of the National to connect with each recei pts so that they are not forced Market has not been worked out <10% as in the absence of any regulator or facilitator, a cartelization by some other spread across the to resort to distress sales. However as yet but it is expected that it will vested interests have developed today, the spot exchanges seem to be based on e-commerce and allow country. This allows be operating in a legal vacuum as purchasers from remote locations which exploit the users. It has also *Based on survey conducted by Global AgriSystem in four metros. become very difficult for purchasers transactions at efficient there is no specific law regulating to be able to purchase goods from from outside the State to do business them. Some States have issued the physical market or accredited and transparent prices, licenses to Spot Exchanges as a warehouses. If this happens, the there. It required changes in the APMC Act development of agricultural markets Advent of Virtual Markets thereby reducing the buyer under the existing APMC acts. Fundamental Rights granted by and Government of India formulated There is a need for Government of the Constitution of India to have a Model APMC Act and circulated and also introduced contract farming One of the recent phenomena cost of intermediation, India to enact legislation to enable freedom of trade and commerce as a desirable activity. However, it all the States for its adoption. The as the market fees remains an in agriculture marketing in India improve marketing spot exchanges to function on pan- without restrictions will become a new Model Act advocated setting has been the advent of Virtual India basis without any conflict with reality. up of private markets or yards, direct extra-budgetary source for earning Markets. A virtual market enables efficiency and reduction State APMC laws. substantial revenue and also as (The author is the Chairman, Global sale purchase by farmers, promotion the old APMC Act has given rise producers and buyers in the supply in consumer paid price. The Central Government has AgriSystem Pvt Ltd.) of PPP in the management and 30 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 31  FOOD PROCESSING With the objective of creating modern infrastructure for food No more cold shoulder to processing and encouraging private investment, the government has sanctioned setting up 17 new Mega cold chain, says Badal Food Parks and 30 Cold Chain projects with a total investment of Rs. 3077 crore. Badal further informed that the scheme of Cold Chain, Value Addition and Preservation Infrastructure provides financial assistance up to Rs. 10 crore for entrepreneurs. A total of 138 integrated Cold Chain projects were approved by the Government, out of which 108 projects are under the implementation by the Ministry. Total Cold Chain infrastructure entrepreneurs for designated food Of these, 52 projects have parks and for setting up of food capacity to be created by these already achieved completion and processing units in the designated is 1.12 Lakh MT of Cold Storage, commenced commercial operation. food parks. The Government has 11.10 Lakh Litres per Day of Milk The capacity created by these classified loans to food and agro Processing, 28.5 MT/Hour of IQF, projects is 2.16 lakh MT of cold based processing units and cold 1434 MT/Day of Ri pening Chamber storage, 80.3 lakh litres per day of chains under agriculture activities and 209 Reefer Vehicles. milk processing, 38.5 MT/Hour of for Priority Sector Lending (PSL). Individual Quick Freeze and 271 of The Union Minister also informed Reefer Transport. that to boost the creation of The Ministry is also working with Infrastructure for Food Processing, the industry for imparting industry It is expected that operationalization relevant skill training including the Ministry has, in the last one year, of 108 projects would create capacity development of course content in inaugurated two Mega Food Parks of 3.64 lakh MT of Cold Storage, 90 identified sectors of food processing. - one in Karnataka and another in A major impediment in India’s hunger crisis is our India is the third largest food MT per hour of individual Quick Fazilka in Punjab. The government The investor-friendly Investor’s Portal Freezing (IQF), 106.95 lakh litres per woefully inadequate food processing infrastructure, producer in the world and yet, just day of milk processing and storage has announced 17 new Mega Food has all the required information available online. leading to massive spoilage of perishables, especially 2.2% of fruits and vegetables are and 601 number of reefer carriers. Parks in last one year. It has also processed. The Central government fruits and vegetables. Harsimrat Kaur Badal, Union is focusing on boosting the Food Badal also informed that sanction completed 14 Cold Chain projects Badal expressed confidence that while 30 new Cold Chain projects these steps of the Government Minister for Food Processing says the government is Processing Sector so that agriculture has been accorded to 30 new Cold are expected to be announced. will create modern infrastructure aware of the problem and is tackling the issue, both sector grows exponentially. Chain proposals for implementation. The Minister informed that the for arresting post-harvest losses of on the front end and the back end. According to Harsimrat Kaur Total expected grant-in-aid to be Government has also set up a Fund horticulture and non-horticulture Badal, Minister of Food Processing, released to these 30 project is Rs. produce and provide impetus to the of Rs. 2000 crore under NABARD addressing the challenges of 274.9 crore which would attract an growth of this sector. for extending affordable credit to insufficient infrastructure that lead to investment of Rs. 470 crore. The timely completion of these huge wastage and undue advantage Integrated Cold Chain and Mega to middlemen at the cost of farmers Food Park projects will not only remuneration, the government will provide a big boost to the growth focus on compressing supply chains of food processing infrastructure in and making them consistent, quicker the concerned states but also help and efficient for supply of farm in providing better price to famers, produce for food processing. reduce wastage of perishables, add The government, she added, will also value to the agricultural produce focus on creating a Cold Chain and create huge employment Infrastructure to link the farmer opportunities especially in rural to the consumer seamlessly and areas. These will lead to the establish a Cold Chain Grid in the stabilization of food products prices entire country. and contain inflation in the country. 32 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 33  GUEST COLUMN All that glitters… …is dangerous That shiny looking apple at your fruit vendor’s may not in fact keep the doctor away, but rather lead you straight to the clinic, if not a hospital, for it probably contains harmful pesticide residue or toxins, that is not fatal, can at least make you very sick, says Pradipta Sahoo, underlining the importance of food safety induce birth defects. Endocrine chain. In fact, it has to start from the another menace in ri pening fruits disruption has been linked to farm to the fork with an integrated like banana and mangoes. It is infertility, low sperm count, early approach in place to address all carcinogenic and is banned as per puberty and hormone dependent the three kinds of contaminants the rule 44A of the PF Act 1955. cancers like testicular, breast and viz: Biological, Chemical & Physical More stringent measures need to be Food security has been on the radar about 18,000 of whom die. As many prostrate cancer. Maternal exposure .Very often food safety means we taken to curb this rampant practice. for quite some time. It is a common as 25 million workers in developing to pesticide has been associated with only think of chemicals in food notion to infer that food security countries may suffer mild pesticide From a pure consumer perspective, pediatric cancer – acute lymphocytic but water used to wash the fruits means to make available more food. poisoning yearly. Detectable levels a few steps will help to become leukemia. The risk of developing can also carry contaminants to the In fact,food security is about security of 50 different pesticides were found aware of any additions of colours Parkinson’s disease is 70% greater stomach. Promotion of Integrated in availability, security in health & in the blood of a representative and chemicals in key vegetables. in those exposed to even low levels Pest Management where green nutrition and security in food safety. sample of the U.S. population. Be careful while buying extra of pesticides. triangle pesticides are part of the Yes, food safety and safety comes shinning tomatoes & brinjal. It As per studies conducted by WHO, management can go a long way The key issue is how to address may be coated with mineral oils first and is non-negotiable. After all in controlling pesticide residue in the impact of pesticide residue food safety. It cannot be done in that can cause gastrointestinal and it’s a question of life! the products. Calcium carbide is in food are enormous. Low doses bits and pieces across the supply respiratory problems. Okra and Most customers think a fresh & of certain pesticides may mimic pointed gourd looking bright green good looking vegetable is safe. or block hormones or trigger like high definition photographs may But it may not be so-the two are inappropriate hormone activity. not be the best ones. It may have entirely different. Quality attributes Endocrine disruption may alter been di pped in copper sulphate are either visible or can be made development and reproduction and solution to give it an artificial color. out while eating but safety attributes Having said this, it is very difficult may go hidden & remain undetected at the consumer level to know even after consumption. Improper what kind of adulteration in food quality may lead to loss of product is present. An all-round awareness expectation in terms of nutrition and execution of safety practices at value & taste. However, improper each stakeholder’s level is the only safety may lead to health problems way to have a long term sustainable & even loss of life. food safety approach. After all, it’s How big is the food safety problem? what we eat, to live and grow. The WHO and the UN Environment Good & safe food for body is not Programme estimate that each year, only about an individual’s wellbeing 3 million workers in agriculture in but a nation’s wellbeing. the developing world experience (The author is Business Head,SAFAL. severe poisoning from pesticides, Views expressed are personal) 34 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 35  INTERNATIONAL vegetable and fruits auction. Also food products. Overall, focus should In order to do so,we have to not only flower sector is mainly managed by be to use technology to optimize double the food production but also cooperatives. VION, our largest meat the profits in the chain. have to optimally use our natural Government shouldn’t processor is a cooperative. Even resources like water, energy, etc. So Q. What are the areas for one of our largest banks, Rabo-bank we look forward to collaborating cooperation between the is a cooperative. in various field of agriculture like Netherlands and India? meddle in a cooperative animal husbandry, cold chain, food Q. Your country is also known Ans. Both the Indian & processing, food safety etc. as the world’s flower market, the Dutch government have been especially because of the auction Q. What is the focus of your visit working together for a few years system. Do you think similar and your meeting with Prime now. We know that half of India’s system could be practiced in Minister of India? population depends on agriculture India? for income. We will have more Ans. India enjoys an excellent Ans. Yes it would be ideal to mouths to feed in coming decades. economic relationshi p with have an auction in India. Especially, Netherlands and both countries are because in India there are many trying to increase bilateral trade. small stakeholders. It becomes What we see is Prime Minister important that the flower-growers ( Narendra ) Modi putting issues support the idea of auctions. Else relating to agriculture into the heart The Netherlands this model would not work. In of his policy. Issues on market Netherlands the flower auctions are can add value to access for apples & pears coming owned by the flower growers. They from Netherlands. So issues related this development join together to be a stronger player to market access are of high in the market. So it is important it’s with good importance to both the countries. a bottom up process. animal genetics, Q. What are the key challenges for Q. Netherlands is also strong agriculture in India? in dairy and animal husbandry. knowhow in Ans. It is really important What can India learn? farm and feed to have a stable policy as Dutch Ans. The Indian dairy & animal management, companies are looking for long- husbandry industry is growing at a term investment. I know the Indian rapid pace. The Netherlands can health products government is working on it. The add value to this development with along with steps of doing business with Indian good animal genetics, knowhow in should be simplified & also focus farm and feed management, health instruments and should also be on Trade with India. Despite having less arable land than India, The Netherlands has a per hectare products along with instruments and technologies for So it’s important that India opens up yield of four times that of India. The secret, says the Dutch Agriculture Minister technologies for hygienic and safe hygienic and safe its markets & lowers tariffs as well. Sharon Dijksma, is to pool in resources from the private sector and agricultural Q. You are a leading member of food products. research institutes with the government acting as a facilitator, and not as an European Union. India is facing a number of constraints in export owner or a meddler. Excerpts from an exclusive interview to Smart Agripost: of various products. What is your view in this regard? What are the products India can export? Q. Despite having very little land, Q. Netherlands is also known Ans. I would like to recall that Netherlands is an agricultural for a strong cooperative farming the Netherlands actively supported It is really super power. How did you achieve system. How is it managed? India in lifting the ban on grapes in important to have this? 2010, and also recently Netherlands Ans. The cooperative movement a stable policy as Ans. Because of little land has been a success because the supported the lifting of the ban on Dutch companies we have to use it very efficiently. government doesn’t meddle or Indian mangoes. On bitter gourd, snake gourd, egg-plant and arbi are looking Private sector, knowledge institutes, interfere. It’s a movement created by we will discuss in detail with our government & human capital in all farmers, as a bottom up development. for long-term fields work closely, pooling in their phytosanitary team and are always Our largest dairy, Friesland Campina, investment. expertise. We call it a diamond is a cooperative owned by farmers. willing to see how we could support approach. Same for the Greenery, our largest India on this. 36 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 37  STATE SCAN The challenges that we are facing at present are Value Addition, Market Arunachal can be Linkage Infrastructure, Soil Health information, Lack of technical intervention towards scientific India’s granary farming. To address the issues of productivity, the State Government is now focusing on scientific cultivation technology right from proper soil Blessed with four distinct geographical nutrient management to active R&D The State Govt. has intervention. In this regard the State zones – sub tropical, tropical, temperate and Cabinet has recently approved prioritised creation alpine – India’s eastern most state, Arunachal ‘Arunachal Pradesh State Soil Health of optimum market What is the total outlay in Pradesh can become a powerhouse producer Mission’ which aims at giving the Agriculture? Do you have any farmer the right knowledge in infrastructure with plan to emphasise on exportable of both cash and staple crops, says the State’s scientific soil nutrient management integrated cold-chain Horticulture produces?. Agriculture Minister, Chowna Mein, in an through issuance of individual Soil for better access to Ans:-The total outlay of our State Health Cards. The State’s Soil Health interview to Smart AgriPost including central sector schemes Mission will not only focus on domestic as well and state plan for the year 2014-15 reclamation and rejuvenation but will strongly focus on preservation as overseas organic in Agriculture and Horticulture was approx Rs. 90 crore and Rs. 70 What are salient features of the is under submission to the State of plantation crops such as Tea, of pristine organic qualities of our markets. The Govt. crore respectively. With the creation Agriculture policy in Arunachal Cabinet for its approval. This policy Rubber and Coconut, Promotion soil. Pradesh? includes all the Agri and allied of Organic Food Crops production, will also facilitate of NITI Aayog by the Govt. of India, We have already approved a full- we do aspect substantial increase in Ans:-Arunachal Pradesh is a very departments. Agri-Mechanization, Apiculture, fledged R&D Institute for Horticulture farmers for obtaining the total outlay of 2015-16 in both Floriculture, Promotion of High-value, vast state having 83,743 Sq km The policy envisages area expansion High-yielding and exotic varieties in the State. This Institute will help organic certification. the sectors. of geographical area. The total for settled cultivation with irrigation the farmers to identify suitable crops of Horticulture crops, Promotion of We do have plans to boost our potential for Agriculture is 7 Lakh facilities, Promotion of Off-Season and will work towards promotion of cultivation of Indigenous Medicinal Horticulture exports given the Ha, out of which 2.25 Lakh Ha has vegetable and cash crops, Oil Seed location specific varieties to enhance What is the scope of private Plants and Inland and Ornamental potential in our State. In this been covered. In Horticulture, the and Oil Palm cultivation, Creation productivity besides development of investment in Agriculture and fish cultivation. connection, very recently, we have total potential area is 18 Lakh Ha, of value addition along with Market quality planting materials. food sector in Arunachal Pradesh? obtained GI registration of our out of which 1.11 Lakh Ha has linkage infrastructure, Promotion What are the major crops in What incentives are you offering Ans:-Since there is an abundant indigenous Orange of a particular been covered till date. Arunachal Pradesh? What for organic farming? produce, especially in Horticulture belt under the name ‘Arunachal are the challenges to increase Until now, our State was working sector, the State Govt. has recently Wakro Orange’ which was otherwise The challenges that we productivity? Ans:-The state government already under the ‘Agriculture policy 2011’. has a policy known as ‘Arunachal adopted ‘Arunachal Pradesh State exported by the mainland traders But very recently, a new ‘Agriculture are facing at present are Ans:-We are proud of the fact that Pradesh State Policy on Organic Wine Policy’ to encourage private under various other names. We also policy 2014’ has been drafted and our state has got varied topography partici pation and investments in plan to obtain GI registration of Value Addition, Market and diverse climatic zones such as Farming’ which was launched in value addition. Besides safeguarding our other indigenous produces very the year 2014. The approach of Linkage Infrastructure, Sub-Tropical, Tropical, Temperate the Govt. under this policy is to the interests of our farmers, under soon. Since commercial cultivation and Alpine due to which we are this policy, many incentives are in Horticulture is in a nascent stage Soil Health information, blessed with food crops of all form clusters of organic farmers in in our State, we do propose to have contiguous areas. We also propose given to the investors in terms of Lack of technical these different zones, which is very to make federation for the clusters relaxation in taxes, Single Window aggressive export oriented plans for rare in rest of the country. The Clearance, Power and Water tariff. the future. intervention towards major Food crops in Sub-Tropical/ for better marketing avenues of the organic produces. We also propose to have other During my recent visit to Thailand, scientific farming. Tropical Zones are Paddy, Mustard, policies in value addition besides the country’s Botanical Garden Maize, Millet, Buckwheat, Orange, The State Govt. has prioritised winery. There is also an ‘Arunachal creation of optimum market Organization (BGO) expressed its Pineapple, Litchi, Banana, Large Pradesh State Industrial Policy’ to infrastructure with integrated cold- interest to visit and take up research Cardamom, Ginger, Turmeric, Chilies, facilitate private investments. There chain for better access to domestic activities in Arunachal Pradesh for Black Pepper, Oil Palm, Tea, Rubber, is definitely a large scope of private as well as overseas organic markets. bi-lateral benefits. I am confident, Coffee, Coconut and Bamboo. Under sector partici pation since Agri and The Govt. will also facilitate farmers with such kind of openings, days Temperate zone, we have Wheat, Allied sectors are the largest in the for obtaining organic certification. are not far when our State will Millet, Maize, Soyabean, Buckwheat, field of employment generation and excel and flourish in the field of Apple, Kiwi and Walnut. economic sustainability in our State. Agriculture and Horticulture. 38 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 39  SNIPPETS Farmers to get instant weather alerts Nowcast, a weather alert service was launched by Union Agriculture Minister Radha Mohan Singh Cold Chain facilities to get warm welcome along with Ministers of State for Agriculture, Dr. Sanjeev Kumar Balyan and Mohanbhai Kalyanjibhai The lack of cold storage facilities and infrastructure Cane farmers to get their arrears Kundariya. Developed by Department of Agriculture is the key reason for huge wastage of perishables Mega Food Park scheme upgraded and commodities, said Minister for Food Processing To help the industry clear its cane dues arrears, the and Cooperation(DAC), Nowcast will offer information Cabinet Committee on Economic Affairs chaired by the about extreme weather conditions like thunderstorm, The Cabinet Committee on Economic Affairs, chaired Industries, Harsimrat Kaur Badal, while inaugurating squall and hail, right down to the farm level, through by the Prime Minister Narendra Modi,has approved the the National Cold Chain Summit organised by Indian Prime Minister, Narendra Modi approved the proposal to provide soft loans to the extent of Rs. 6000 crore SMS alerts. modification in Mega Food Park Scheme guideline of Chamber of Commerce, at Gangtok. It also led to infrastructure development for food processing. These undue advantage to middlemen at the cost of farmers’ to the sugar industry. CCEA has provided a one year A new agriculture insurance portal, www.farmer.gov. modifications will streamline the implementation of remuneration and hindered development of seamless moratorium on this loan, and will bear the interest in/insurance, was also launched on the occasion. the scheme. linkages between the farmer and the consumer, she subvention cost to the extent of Rs. 600 crore for This portal will not only allow farmers to compare added. the said period. The arrears will be credited directly different insurance schemes available in their area, These modifications are expected to trigger further into the bank account of the farmers. Furthermore, along with the premium required, but also enable investment in the food processing sector. Each Mega To tackle this problem, the minister said the in order to incentivise the mills to clear their dues, online filing of insurance applications. India has a Food Park is expected to benefit 6000 farmers and government’s scheme for Cold chain, Value Addition CCEA has also decided that the approved soft loans very low percentage of agriculture insurance, with producers directly and about 25000 farmers indirectly. and Preservation Infrastructure provides financial will be provided to those units which clear at least only 20% of the gross cropped area currently insured. assistance up to Rs. 10 crore for entrepreneurs. A total 50 percent of their outstanding arrears before 30th Estimated investment in each project will be Rs. of 138 integrated cold chain projects were approved The Mission Mode Project in Agriculture under 100 crore in common facilities with a leverage for June, 2015. In the current sugar year (Oct 20014-Sept by the Government, which includes 30 new cold chain National e-Governance Plan (NeGP-A) aims to additional investment of Rs. 250 crore. The expected 2015), the cane price arrears are approximately Rs. projects sanctioned recently for implementation and achieve rapid development of agriculture in India annual turnover of each project will be Rs. 500 crore, 21,000 crore. would attract an investment of Rs. 470 Crore. through the use of ICT by ensuring timely access to with 30 food processing units expected to be setup agriculture related information for the farmers of the in each project. country. Twelve clusters of services including Information on inputs; Soil Health; Good Agricultural Practices; Weather; Livestock, Fisheries: Marketing: Scheme Information; Training etc. have been identified and development of Web based applications on various components of these services is being undertaken before their roll out in the States with required local customization. Mega Food Park launched in Assam NABARD to build godowns Ministry of Food Processing Industries has sanctioned José Graziano da Silva re-elected FAO The National Bank for Agriculture and Rural a Mega Food Park roject in Namlbari, Assam. The Director-General Development (Nabard) has sanctioned Rs 931 crore 50 acre project will entail an investment of Rs. 76 Incumbent FAO Director-General José Graziano da for 3,327 godowns and warehouses in 28 districts crore.This project will have fully operational industrial Silva was on Saturday re-elected to a second term in in Orissa. “The state government has decided to Food Processing mission launched sheds for SMEs, developed industrial plots for lease to the organisation’s top post with the highest number of develop storage infrastructure in 2,687 Primary food processing units, Dry Warehouse of 10000 MT, votes ever in the history of FAO. He received a total Agricultural Credit Societies (PACS). Ministry of Food Processing Industries (MoFPI) Cold Storages of 3000 MT, Common Effluent Treatment launched a Centrally Sponsored Scheme - National of 177 out of 182 votes cast. It has been decided to construct at least two godowns, plant, Quality Control Labs. Speaking on the occasion, Mission on Food Processing (NMFP) to be implemented Harsimrat Kaur Badal, Union Food Processing Minister Nominated by Brazil, Graziano da Silva was the only one for storing grains and the other for fertilizer, in through State / UT Governments during 12th Five said that the Mega Food Park will leverage an additional candidate during this year’s election cycle. His new the identified PACS. The bank has agreed to support Year Plan (2012-17). The scheme aims to decentralise investment of about Rs. 250 crore in 30-35 foeleod term will run from 31 July 2015 till July 2019. The the initiative,” an official release from the bank said. implementation of the schemes, leading to substantial processing units in the Park and generate a turnover election took place on the first day of FAO’s biennial The storage capacity of godowns for grains and partici pation of State Governments/UTs. State of about Rs. 450-500 Crore annually. The Park will governing Conference (6-13 June). Graziano da Silva fertilizers will be 300 MT and 100 MT respectively. Governments may decide to continue (or not) NMFP also provide direct and indirect employment to 6000 joined FAO in 2006 as the head of its Regional Office The amount will be sanctioned under Warehouse scheme out of their increased resources resulting from people and benefit about 25000-30000 farmers in the for Latin America and the Caribbean and was first Infrastructure Fund 2014-15, it said. the recommendations of the 14th Finance Commission. CPC and PPC catchment areas. elected Director-General on 26 June 2011. 40 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 41  Research MoU for veterinary medicine A Memorandum of Understanding was signed between ICAR,New Delhi and Trans-Disci pline University, Bengaluru on Ethno-veterinary medicine. The MoU was signed by Dr. S. Ayyappan, Secretary DARE and Director General, ICAR and Dr. Darshan Shankar, Vice-Chancellor, TDU. The MoU will help coordinate the research in Ethno-veterinary medicine, which is being carried out by many institutes as isolated cases. Both Vodafone launched ‘KisaanMitr’ institutes are collaborating in the field of bovine mastitis and the KisaanMitr, meaning farmers’ friend, a new SMS MoU is expected to strengthen the research collaboration between 150 cold storage units in Odisha by 2019 based service for small scale farmers was launched two organisations. The use of Ayurveda in veterinary medicine is also by Vodafone. KisaanMitr will provide farmers real expected to get a boost with this MoU. Odisha plans to set up 150 cold storage units with a combined capacity of 7.47 lakh tonnes across the state time agricultural based information, through three A new centre, ICAR-National Institute of Veterinary Epidemiology and by 2019. Aimed at giving a filli p to the agriculture free SMS alerts daily. Disease Informatics (ICAR-NIVEDI) was also inaugurated at Yelahanka, sector by helping farmers store their produce, the cold “The basis for the next green revolution in India Bengaluru. storage units will be developed under the Public- will be a “knowledge revolution”, and technology, Private Partnershi p mode. A decision in this regard particularly mobile, will play a key role in driving it. was taken at a meeting headed by Chief Minister Today, 46% of people in rural areas have a mobile Naveen Patnaik to review the performance of the phone and access to mobile services among those 500 crore Price Stabilization Fund to be set up agriculture department as well as the fisheries and yet unconnected is growing rapidly. This offers a A ₹500 crore price stabilisation fund (PSF) will be established by the animal resources department at the state secretariat. new channel for delivering agricultural services and government to support market intervention for price control of perishable The state government has decided to cultivate nine an opportunity to engage rural communities in a agri-horticulture commodities. The fund will be valid for three years, lakh tonnes of vegetables from 5000 hectares of land new way,” said Sunil Sood, MD & CEO, Vodafone from 2014-15 to 2016-17. Initially the fund is proposed to be used for every year using advanced methods of cultivation to India. market interventions for onion and potato only. Later the government has increase farm output in the state. decided to utilise part of the corpus meant for price stabilisation fund to The telecom company also released a report moderate prices pf pulses and make them available at affordable rate. ‘Connected Farming in India’ which says that the introduction of simple mobile services could boost PSF Scheme provides for advancing interest free loan to State Governments, Grow safe food campaign the incomes of 7 crore Indian farmers by over Rs. Union Territories (UTs) and Central agencies to support their working To promote safe and judicious use of pesticides, the 56,000 crore in 2020. capital and other expenses incurred on procurement and distribution Central government has launched a GrownSafe Food interventions for such commodities. Releasing the report, Raghav Chandra, Additional campaign, in association with state governments and Secretary & Financial Advisor, Ministry of Agriculture, It will be managed centrally by a Price Stabilization Fund Management stakeholders. Through its Central Integrated Pest said, “Technology for farmers is one of the focus Committee (PSFMC) which will approve all proposals from State Management Centres situated in different parts of the areas under e-Kranti, a key pillar for realising the Governments and Central Agencies. The PSF will be maintained as a country, the government is conducting field workshops Digital India vision. The future of agriculture lies Central Corpus Fund by Small Farmers Agribusiness Consortium (SFAC), centered around five essential princi ples of judicious in bringing digital services to the farm as agriculture which will act as Fund Manager. pesticide use. These are right pesticide for right crop, is increasingly becoming more and more knowledge right pesticide against right pests, right pesticide at the intensive”. right time, right pesticide in the right dose and right Mahindra’s tractor sales pesticide in right method. For this purpose,training and The report further says that adoption of simple decline media campaigns in Gram Panchayats and rural areas mobile services could help boost agriculture earnings Mahindra & Mahindra Ltd.’s Farm will be conducted. Advisories have also been sent to of nearly two thirds of India’s farmers by ₹8000 per Equi pment Sector (FES), a part of pesticides dealers to educate them on judicious use year. The average farming household lives on less the $16.9 billion Mahindra Group of pesticides in accordance with label instructions. than Rs. 250 per day. saw its domestic sales in June 2015 decline to 23,899 units, as against Making a healthy soil 28,893¬units during June 2014. Total tractor sales (domestic + exports) A soil test designed to enhance higher crop productivity is being promoted by the government. The test uses during June 2015 stood at 25090 both organic and inorganic sources of plant nutrients increase and sustain good soil health. units, as against 29,884 units for the Under soil health management (SHM) component of National Mission for Sustainable Agriculture (NMSA), same period last year. Exports for financial assistance for training to farmers, including field demonstrations on balanced use of fertilizers, is the month stood at 1,191¬¬units, registering a growth of 20%. Commenting provided at ₹10,000 per training for 20 or more partici pants and ₹20,000 for frontline field demonstrations. on the monthly performance, Harish Chavan, Chief Operating Officer - Farm Division, Mahindra & Mahindra Ltd. said, “We have registered a NABARD, under the National Mission of Sustainable Agriculture, will also offer financial assistance through the sale of 23899 tractors during June 2015 in the domestic market. With Capital Investment Subsidy Scheme (CISS) for establishment of bio-fertiliser and biopesticides production units a healthy spread of the monsoon and good sowing progress across the of 200 TPA in which 100 percent assistance is provided to State Government up to a maximum limit of ₹1.6 country, we are hopeful of a very good agricultural output, leading to crore per unit and 25 percent cost limited to ₹40 lakh to individuals and private agencies. improved market sentiment. 42 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 43  Maggi row fallout: ASSOCHAM seeks PM’s National Dairy Plan extended intervention The Cabinet Committee on Economic Affairs, Expressing serious concern over widespread panic chaired by the Prime Minister Shri Narendra Modi, being created by the FSSAI and several state has given its approval for inclusion of Uttarakhand, government authorities over safety of all types Jharkhand and Chhattisgarh in the list of States to be of packaged and branded food, ASSOCHAM has covered under the National Dairy Plan- I (NDP-I). written to Prime Minister Narendra Modi seeking his The CCEA also extended the implementation period immediate intervention. upto 2018-19 in order to achieve key outputs of National Dairy Plan- I. “Recent incidents of food recall coupled with onslaught in media has shaken confidence of the Jharkhand and Chhattisgarh are newly formed States industry thereby risking an investment of over Rs which are primarily inhabited by tribal population 90,000 crore and an estimated export of over $40 having substantial milch animal population and billion, which will impact livelihoods, farmers, agri- have the potential for coverage under NDP I. wastages, inflation and moreover investment climate Although Uttarakhand was not included for all the in India,” ASSOCHAM said in a letter to the Prime approved components under the scheme NDP-I, Minister. the Project Implementation Plan document (a part of EFC memo for NDP-I) included sub projects The FSSAI action in the case of the Maggi brand of Animal Breeding and Strengthening of Semen of noodles, has been followed by a spate of notices Stations for implementation in Uttarakhand. issued by various State authorities to several other manufacturers across the country. NDP I is now being implemented in 15 States which account for more than 90 per cent of the The Government should clearly lay down guidelines, country’s milk production, over 87 per cent of the in the interest of justice and fairness, to ensure that breeding cattle population and 98 per cent of the the authorities refrain from making press statements country’s fodder resources. and taking any coercive action even before an adjudicatory process under the law has concluded, the letter said. RKM Belurmath Lower your Electric Bill Reduce Your Carbon Foot Print Help Line: 033-6050 6060 www.careofenergy.com 44 SMART AGRIPOST I JULY I 2015 SMART AGRIPOST I JULY I 2015 45