1 Employment Generation in Agriculture, Wasteland Development, Afforestation & Agro-Industries Workshop on Employment in Rural Non-Farm Sector Institute for Applied Manpower Research New Delhi, March 25-27, 2002

2 Contradictions in Indian Agriculture  Lowest wages but highest unit production cost for all crops -- due to low crop yields.  Abundant water resources but not enough water for agriculture -- due to wastage of water. e.g. California cotton farmers produce 35 times more cotton per liter of water than in Tamil Nadu with AT.  Huge food stocks but widespread malnutrition -- due to lack of purchasing power.  Though farmers produce more, they earn less -- due to falling market prices.

3 Low Crop Productivity  High Production Cost & Low Employment Generation  Low Incomes, Low Purchasing Power & Low Demand For Food Crops  Low Food Consumption, Malnutrition & Chronic Poverty Vicious Cycle of Indian Agriculture

4 Solution to the Contradictions  Increase productivity to reduce unit cost of production and generates jobs, higher income for farmers, and exportable surpluses.  Raise profitability of agriculture to increase the incomes and purchasing power of rural population to eliminate malnutrition and stimulate demand.  Link agriculture to agro-industries such as biomass power, fuel and edible oil to provide assured market for surplus production & generate non-farm employment.  Rotate crops every season and diversify from foodgrains to commercial & orchard crops in response to market demand to avoid surplus production.  Raise efficiency of water usage & crop productivity by advanced methods of deep soil ploughing & rainwater harvesting.

5 High Crop Productivity  Low Production Cost & High Employment Generation  High Incomes, High Purchasing Power & High Demand For Food Crops  Higher Food Consumption, Good Health & Prosperity Virtuous Cycle of Indian Agriculture

6 Agriculture Technology (AT) Engine for Growth Higher crop yields & farmer profit through AT Higher on-farm employment Links to Agro-industries for assured market Higher non-farm employment Higher purchasing power leading to bigger demand for food

7 Critical Needs  Apply advanced crop production technology to raise yields  Intensive training of farmers on AT  Diversify cropping patterns  Improve management of water resources  Create links with agro-industries

8 Low Indian Crop Productivity (kg/ha) CropUSAIndiaUSA/India Rice Maize Wheat Groundnut Soy beans Potato40,23817, Lint Cotton Tomato59,29515,1383.9

9 California AT “Applied” in India CropIndian AverageCACS in India Tomato25-30 tons/ha80-86 tons/acre Lint Cotton432 kg/ha985 kg/ha Egg Plant tons/ha60 tons/ha Black Pepper0.5 kg/vine1.23 kg/vine

10 Raising Crop Productivity  Soil preparation  Plant nutrition  Water management  Pest management  Time & schedule management

11 Deep Soil Ploughing for Rainwater Harvesting  Indian farmers plough soil only 6 to 8” deep, resulting in dense packing of earth that prevents rainwater and crop roots from penetrating into the earth, leads to flooding of crops, and stunts plant growth.  Deep ploughing enables soil to capture rainwater, recharges groundwater, prevents run-off, enables root systems to grow deep, increases crop productivity. This reduces need for irrigation to as low as 20%.

12 Normal Indian Soil Hard Pan 6” Rainwater cannot penetrate deepr or drain, so it floods roots & evaporates rapidly. The flooding prevents plant roots from breathing, which is essential for absorption of nutrients. Roots cannot penetrate so plant growth is stunted. Plants are small, weak, needs frequent irrigation & gives low yield. Crop

13 Deep Soil ploughing 36” Rainwater stored deep down where it will not easily evaporate & is available to plants for months Roots sink deep to reach perennial water supply & nutrients. Plant grows large, strong & highly productive. Soft Pan Crop

14 Balanced Soil & Plant Nutrition  Plants require more than 12 essential nutrients to generate healthy and productive growth.  Without these 12 nutrients, genetic potential of hybrid seeds cannot be tapped. Same hybrid rice seed generates 2.8 tons per hectare in India, 5.4 tons in China and 8 tons in USA.  In India, soil is being tested for only three nutrients.  Methods employed in India for application of fertilizers lead to low absorption, high wastage and high cost.  Advanced methods can triple or quadruple the productivity of the same hybrid seed.

15 Rotate & Mix Cropping Patterns  Rotate 3 different crops for 3 seasons every year (1 year example) Vegetable in fall Maize in spring Pulse in summer  Mixed cropping (10 acre example) 3 acres maize, tapioca, sugarcane or sugar beet for ethanol 1 acre banana 1 acre vegetable 1 acre pulses for edible oil 1 acre mango, neem or amla orchard 1 acre Casuarina (irrigated or dry 1 acre jatropa (dry) for fuel oil 1 acre Paradise tree (dry) for edible oil

16 Assured Agro-Industrial Markets  Energy  Edible Oil  Other commercial crops

17 Energy is an unlimited market  India needs energy – demand for power & oil will triple by 2020  Shift to renewable energy for energy self-sufficiency  Electrical power can be produced from biomass  Bio-fuels are cost-effective source of renewable energy & reduce dependence on coal & imported oil

18 Projected Power Demand by 2020

19 Biomass Power Generation  Utilise paddy straw, cane waste, begasse  Cultivate energy plantations -- casuarina, bamboo, prosopis and others on rain-fed and irrigated lands  Power plants of 6-25 MW size  Capital investment Rs 3 crores per MW vs. Rs 5 crores for thermal power  20 units in AP alone with 20 more licensed  Tamil Nadu planning for hundreds of units  Cost per unit Rs 2.50 based on biomass at Rs 800 per ton

20 Strategy & Benefits of Biomass Power  Develop 10 million hectares of energy plantation crops such as casuarina, eucalyptus & bamboo  Establish 4000 decentralised power plants  Generate 40,000 MW of power  Create year-round employment for 5 million people  Reduce transmission losses & support rural industries.

21 Projected Oil Demand by 2020

22 Bio-Fuels – Jatropa Curcas  Dry land crop from Africa  Seeds which contain up to 35% oil  Oil is a substitute for No.2 diesel & kerosene  Blend in diesel motor fuels up to 15%.  Cost is competitive with other fuel oils.

23  Cultivate 5 million hectares on wastelands  Establish 1250 oil expeller units  Produce 3.75 million tons of fuel annually valued at Rs 7500 crores  Create year-round employment for 2.5 million people. Strategy & Benefits of Jatropa

24 Bio-Fuels – Ethanol  Ethanol is clean burning, pollution free fuel.  Ethanol-petrol fuel blends are utilized in more than 20 countries, including Brazil, Canada, Sweden and USA.  USA consumes 4 billion liters of ethanol as motor fuel per annum.  Brazil consumes more than 16 billion liters annually & meets 41% of total demand for transport fuel

25 Ethanol in India  GOI has already approved 5% ethanol-petrol fuel blend  Ethanol can be approved for use up to 10% mix with both petrol & diesel in unmodified vehicle engines.  India consumes 40 million tons of diesel & 6 million tons of petrol annually. A 10% blend would require 4.6 million tons per annum.  With engine modification, much higher ethanol blends can be utilized, created a potential demand for more than 10 million tons per annum.  Total current production of ethanol in India (primarily from molasses) is 1.3 million tons, of which 50% is used for industrial purposes and 50% for potable purposes.

26 Ethanol Production  Molasses – India has 2 million ton surplus  Sugarcane – India has 10 months supply of sugar  Maize  Tapioca  Sugar beet – can produce 50% more fuel per acre per year consuming only 40% the water.

27 Economics of Ethanol Fuel  Sale price of ethanol fuel from sugarcane can be approximately Rs 18 liter, of which 2/3rd will go as income to farmers.  Export – market: International price Rs per liter FOB.  GOI special excise duty concession on 5% ethanol-petrol blends of 75 np per liter works out to Rs 15 per liter of ethanol.

28 Strategy & Benefits of Ethanol  Cultivate 0.5 million hectares of addl fuel crops  250 ethanol production units  Produce 6 million tons ethanol, value Rs 11,000 crs  Create 2.25 million rural jobs  Reduces dependence on imported fuels  Creates an alternative market for sugarcane to reduce sugar surplus  Stimulus to rural industrialization  Reduce pollution from petrol-based motor fuel  Boost rural electricity generation from begasse & provide local source of power for industrialization

29 Meet India’s demand for Edible Oil  India imports Rs 10,000 cr of edible oil / year  Paradise tree is rainfed, oil-seed crop from Brazil containing 50% edible oil  Cultivate 5 million hectares of Paradise Tree  Establish 1250 oil expeller units  Produce 3.75 MT of edible oil worth Rs 11,000 crores  Create 2.5 million year-round jobs

30 Other Agro-Industrial Crops  Corn oil, corn flakes, corn syrup, fructose, chicken & cattle feed, and many other foods and industrial chemicals from maize  Fruit juices, pulp and dried fruits from mango, guava, pineapple, grapes, etc.  High protein foods from beans  Herbs & Medicinal plants such as amla, neem

31 Generate 3000 Agro-Industries  250 – 4000 MW Biomass Power Plants  1250 – Oil extraction units for jatropa fuel oil  1250 – Oil extraction units for edible oil from Paradise tree  250 – Ethanol plants Based on registered crops on sugar factory model

32 Summary of Benefits  Create 13 million farm & non-farm jobs  Generate 40,000 MW of power  Produce 18,000 crores of biofuels  Meet India’s total demand for edible oil  Increase agricultural GDP by 35 to 50%