1. AGRARIAN DISTRESS IN INDIA
DR. DESHMUKH V.V.
DEPARTMENT OF ECONOMICS,
Rayat Shikshan Sanstha’s
S.M.JOSHI COLLEGE HADAPSAR, PUNE

2. OUR WORRIES Population continue to grow at unsustainable levels
Cultivated land is shrinking due to urbanization
Land fertility is reduced due to various reasons
Natural calamities drought, cold, rains are affecting the production
Lack of disease alarming systems in crops and animals
Real farmers are not having technological skills
Infertility is increasing in animals
Increasing shelf life of farmer’s product
To minimize the risk of cultivation
How to reduce poverty and improve nutrition of our masses
Climate change causing damages

3. Challenges • Shrinking land resources • Climate change
• Declining Water resources
• Demand for Organic Farming
• Shortages of Plant Nutrients
• High cost of Inputs
• Inadequate credit availability
• High Energy costs
• Soil health problem
• Negative Thinking

4. Shrinking land resource
• Urbanisation, Industrilisation,
• New roads. New railway tracks,
• New Airports, Ports,
• About 50 % population in cities
• Desertification, water logging
• More & more from less & less lands
• Adoption of farming system
• Home stead farming, urban agriculture

5. INDIAN AGRICULTURE SCENARIO
Net Cultivated Area : 141 m ha
Irrigated Area : 56 m ha (40%)
Rainfed/Dryland Area : 85 m ha (60%)

6. Irrigated area (> 30% irrigation)
Geographical area
328.7 m.ha
Net cultivated area
161.8 m.ha
Net Rainfed area
141.7 m.ha
Net Irrigated area
50.1 m.ha
Irrigated area (> 30% irrigation)
Rain fed area (< 30% irrigation )

7. Dry lands of India Erratic rainfall leading to frequent drought events
Degraded lands
Resource poor farmers
Small and marginal holdings
Lowering of groundwater table

8. Range of rainfall variability across hydro-climatic zones

9. Three Phases
Reform and consolidation of agriculture during 1950’s & 1960’s on the lines decided during the freedom struggle.
Green revolution and the growth of political populism during 1970’s & 1980’s.
Liberalization and the deterioration of the farmers condition during 1990’s and after.

10. Water scarcity • HD for agriculture, industry • Human & livestock
• Underground water arsenic
• Apply water at critical stages
• Crop & varieties needing less water
• More use of Micro- irrigation system
• Rain fed horticulture
• Water & soil conservation

11. Agrarian Distress
Agriculture in India passing through a difficult time.
Something is terribly wrong in the country side.
The most extreme manifestation of the crisis is in the suicides of farmers.
Between there were 8900 suicides by farmers.
Suicides have been reported from the states which are relatively agriculturally developed.

12. Suicides
Suicides have been reported from the states which have seen strong peasant movements.
Where the leadership of the political parties has come from farming communities.
Karnataka, Kerala, Tamil Nadu, A.P, Maharashtra, Gujarat and Punjab are the worst affected states.

13. Suiside Prone Area-Vidarbha Region
Background:
Area: sq.km. (1/3 of Maharashtra, sq.km
Two Revenue divisions: Amarawati (46027 sq.k.m) and Nagpur (51377 sq.km.)
Cultivable area: sq.km.
Area under Crop: 57%
Area under Forest: 28%
Population: 21 million (1/5 of Maharashtra)
60% of States mineral production comes from Vodarbha
80% Forest land in Vidarbha

14. Suiside Prone Area-Vidarbha Region
Electricity generation: 2400 million units while it’s own requirement is 1100 million units leaving a surplus of 1300 million units which is supplied to rest of Maharashtra
Such a rich area of Vidarbha is languishing in Economic backwardness.
Largest cotton and orange production
Largest untapped irrigation potential

15. Suiside Prone Area-Vidarbha Region
Largest industrial estate
Centrally located
Basic infrastructure with good road, rail and air network and large trained manpower.
Vidarbhas economy is linked to the economic condition of the cotton growers and cotton based industries.

16. Suiside Prone Area-Vidarbha Region
More than 17 lakhs hectare in Vidarbha is under cotton cultivation.
Out of this about 97% is rain fed.
The productivity of cotton is lowest, which is hardly 160 k.g. lint per hectare. As against the national average of 300 k.g. lint per hect.

17. Suiside Prone Area-Vidarbha Region
Suicide All India level: Farming %
Housewife 19.96%, Self employment 16.78%
Maharashtra:Farming %
Housewife 22.92%, Self employment 20.41%
Causes: stress in rural areas, isolated families, feeling insecurities due to crop failure, land alienation and indebtedness.
Agrarian distress caused in some of the districts of Vidarbha.

18. Indian farmer’s future is an endless night
Some Basic Facts:
Suicide Mortality Rate (SMR) per lakh of population was highest in Kerala.
There are 6 States Maharashtra, West Bengal, Karnataka, Tamil Nadu, Andhra Pradesh and Kerala where 2/3rd of suicides have taken place.
Maharashtra- max.percentage of share of suicides across states 13.47%.

19. Indian Agriculture -Risky, Expensive and Water Dependent
Rural non-farm employment opportunities have not increased.
Increase in the proportion of small and marginal farmers and agricultural laborers.
The small and marginal farmer is thinking big and willing to experiment and take risks.
Bad monsoon leading to crop failure can put him into indebtedness and crashing of dreams.

20. Serious energy crisis • Agriculture-energy intensive
• Needs diesel, electricity –sky rocketing price
• Rs 180,000 subsidy after price hike
• About 70% crude oil imported
• Increase use efficiency
• Use of non tradition energy-solar, hydro, etc.
• Energy saving is energy creation

21. AGRICULTURE TOMMAROW Variable tillage by soil type, relief, etc.
Adjustments with various seed varieties and varying rates of their application
Adjustments with varying NPK fertilizer rates
Variable use of pesticides
Remote Sensing images through the season – scouting, nutrients, drainage and yield
Yield maps showing variation by location
Use of Nano-technology

22. Nanotechnology applications
Smart Delivery Systems
Precision Farming
Nanotechnology
applications
Food Processing
Packaging and Food Safety

23. How nanotechnology application help in precision farming technologies?
Nanotechnologies in the Food Industry
Nanotechnologies in the food industry will grow from $410 million in 2006 to
be worth $5.8 billion by 2012, but the impact will not be evenly spread.

24. Adjustments with the change in monsoon meteorology
Dispersal of rainfall,
Need to change the date of sowing as per the mansoon meteorology,
Change in cropping pattern based on rain resistance and drought resistance crops,
Access of the use of GM crop technology,
Watershed development (not EGS) in drought zone,
Hydrological and biological engineering activities.

25. Demand for organic farming
• Of demand increasing
• Feed ever-increasing population
• 10 ha land to produce 1 ha
• Nature has no quarrel with inorganic
• Water is inorganic” Pran “
• Plants take nutrients in inorganic form

26. Precession farming
It is also known as site-specific management, describes a bundle of new information technologies applied to the management of large-scale, commercial agriculture.
Precision farming technologies includes:
1.personal computers
2.satellite-positioning systems
3.geographic information systems
4. automated machine guidance
5. remote sensing devices and telecommunications

27. YIELD MAPPING A-UNCROPPED, B-HARVESTED, F-HIGH YIELDING

28. YIELD ESTIMATION

29. SOIL PROPERTIES BY LAND SEGEMENT

30. OPTIMUM N RATE (HIGHEST PROFITABILITY)

31. FERTILIZER STRIPES

32. IRS-P6 LISS-III data showing spatial distribution of COTTON crop in Nagpur district (Oct. 11, 2004)
Area: ha

33. Second Green Revolution
The urgent need for taking agriculture to a higher trajectory of 4% annual growth can be met only with improvement in the scale as well as quality of agricultural reforms undertaken by the various States and agencies at the various levels. These reforms must aim at efficient use of resources and conservation of soil, water and ecology on a sustainable basis, and in holistic framework. Such a holistic framework must incorporate financing of rural infrastructure such as water, road and power

34. Conti….
The approach paper to the Eleventh five year plan had aptly highlighted such a holistic framework and suggested the following strategy to raise agricultural out[put:
Doubling the rate of growth of irrigated area
Improving water management, rain water harvesting and watershed development
Reclaiming degraded land and focusing on soil quality
Bridging the knowledge gap through effective extension
Diversifying into high value outputs, fruits, vegetables, flowers, herbs and spices, medicinal plants, bamboo, bio-diesel, but with adequate measures to ensure food security.

35. Conti…. Promoting animal husbandry and fishery
Providing easy access to credit at affordable rates
Improving the incentive structure and functioning of markets
Refocusing on land reforms issues
National Commission on Farmers has already laid the foundation for such as framework

36. AGRIBUSINESS MODEL
Continuous involvement with the promotion of agriculture through public-private partnerships, we have experimented with many different models.
setting up of Agribusiness Centres (ABCs). In recent past many Banks have also come forward to support the Agribusiness Centres under a tripartite arrangement.
During the year , through a long process of negotiations a comprehensive approach has been evolved in joint collaboration with ICICI Bank Limited.
Similar offers from HDFC Bank Limited as well as from a newly setup Yes Bank Limited.
Even the regional office of NABARD, the apex refinance institution for agricultural credit in India has also offered to support this initiative.

37. Step-by-Step Activities to Establish Agribusiness Centres
Selection of Agripreneurs. Based on location, qualification, aptitude, investment capacity, ability to mobilize resources, etc. for potential clusters identified.
Training and capacity building of Agripreneurs in Agribusiness management. Through both formal as well as informal programmes being conducted under Agriclinic scheme of GOI
Skill development in Agri-Biotechnologies and precision farming for organic agriculture. Through a structured training course offered on cost reimbursement basis.
Agripreneur - location specific Agribusiness plan development. By adopting cluster approach and through organic agriculture potential assessment exercise jointly.
Resource mobilization, linkages and tie-ups for Agribusiness Centre. By joint efforts and with minimum 20-50% contribution by the Agripreneur.
Agriculture extension services in the catchment's area for identification of client farmers and rapport building with them. Standard procedures and programmes can be developed for early success.
Micro planning and Organic Certification for client farmers. Based on standard documents developed for organic agriculture.

38. Step-by-Step Activities to Establish Agribusiness Centres
Procurement and marketing of inputs. Demand based, organized through a network.
Production and marketing of location-crop specific inputs. Based on Agri-Biotechnology, first unit is set up for vermiculture. Subsequently, soil conditioners and probiotic applications are added.
Conduct in-house research, trials and demonstrations for establishing package of practices to be disseminated to client farmers. It also generates initial revenues.
Introduction of precision farming techniques including processing activities. For selected crops based on future potential for procurement of farm produce, complete set of technical inputs including advice and material support is delivered. This activity becomes second major source of revenues.
Procurement of farm produce and processing. Based on forward linkages in terms of marketing contracts, necessary post harvest processing and storage activities are carried out.
Marketing of farm produce. Based on capacity and either alone (i.e. on his own) or under suitable tie-ups.
Contract farming. Turnkey services with linkages for value added agriculture and organic farming.

39. Pre-requisite of an Agripreneur and his/her background
A potential Agripreneur could preferably be with an agriculture background (both qualification as well as experience can be the qualifying criteria) must have location-specific intentions to setup Agribusiness Centre in any part of the country.

40. Opportunities
Enterprise promotion as an Agribusiness plan backed by proper training (skill development), supported by suitable infrastructure (resource mobilization) and implemented with appropriate linkages (tie-ups) in the form of Agriclinics /Agribusiness Centres has become big opportunity for unemployed youths on one hand and sustainable and economically viable agriculture on other hand.

41. Opportunities • Adoption of Farming System
• Scope of Food production exists
• Adoption of Farming System
• OF in Selected Crops and Areas
• Contract Farming
• Precision Farming
• Corporate & Co-operate Farming
• Use of Non traditional energy
• Nutrient Fortified crop Plants
• Use of Genetic Engineering
• Use of Information Tech
• Urban Agriculture

42. IMPORTANCE OF STRENGTHENING DRY LAND FARMING
60% of cultivated area - about 85 million ha
Contributes approx. 40% of total food production
Native to many nutritious crops (Dicoccum wheat, ragi, pearl millet, pulses, oilseeds, fruits, etc.)
Successive years of deficient rainfall
No. of farm holdings affected 54.6 m

43. What to do ?
Need to re-invent country’s monsoon agriculture through change in policy & approach
Target dry land areas for diversification- livestock, horticulture, silviculture, grassland, fodder in keeping with natural resource availability
Improve in-situ moisture conservation through ground water recharge
Adopt dry land farming approach- raised bed, ridge furrow, zero tillage, mulching
Integrate with multiple watershed development programmes of other agencies/Ministries

44. SOCIO-ECONOMIC IMPACT OF
NO INTERVENTION
Loss of crop
Reduced productivity and loss of income
Loss of wages to labourers & unemployment
Increased drought relief
Migration of farm labourers and farmers
High indebtedness and debt trap for farming community
Migration and loss of animal/ livestock

45. Impact of climate change
• Global warming—wars, famine, population
reduction
• Half population risk of conflict
• Forty six nations-2.7bn people conflicts
• Dam Smith, Secretary General by 2020

46. Value-added Agriculture
These businesses exploit a location, production, servicing, technology, branding, or systems aspect to give them the differential advantage. Markets will be 80% domestic and 20% international, with a focus on natural and organic foods and emerging energy and natural resource products, such as ethanol, biodiesel, wind power, water, and mineral harvesting aspects.
Special units or teams will evolve to handle these entrepreneurial entities across institutions and even with competitors. This agricultural segment is in dire need of new credit underwriting standards that capture the risk and components of a successful entity. Needs of these enterprises from lenders include business planning, strategy development, growth management, coaching, working capital and cash management, and networking across markets and sectors. Profits and sustainability, along with risk, are high as this group takes on the characteristics of entrepreneurial small businesses.

47. Agri-entertainer
Finally, the fastest growing model will be coined as the agri-entertainer. Financing of lodges for hunting, pumpkin festivals, bed and breakfasts, the urban farmer's market, horse trails, or all-terrain vehicle recreational sites will become more commonplace. This model can be easily integrated into any of the previously mentioned entities as a side venture. Lifestyle, value-added, and the agri-entertainer models will attract a new set of youth and adults bringing needed energy to North American agriculture as they seek to fulfill their dreams.

48. Conclusions
Presently, a broadly defined approach for an ABC has been evolved. However, for each location i.e. for an individual entrepreneur he/she will have to undertake separate exercise. To help facilitate this exercise, Morarka Foundation has developed a complete set of standard formats.
Envision the future of agricultural lending as it evolves over the next 15 years. By recognizing current trends and looking toward the future, individuals can strategically position their businesses and people to proactively mitigate risk in adverse events and capitalize on opportunities.

49. THANK YOU