Meeting on Potential PPP with Karnataka Bhoochetana Project

Meeting on Potential PPP with Karnataka Bhoochetana Project
ICRISAT, Patancheru May 9, 2013 1

Agenda 10:00 am to 10:10 am Welcome and introduction by Dr. S. Wani, Head of Watershed and Integrated Watershed Management Project, ICRISAT on objectives of Bhoochetana Stage 2 and role envisaged for integrated PPP engaging Action Platform members. 10:10 am to 10:20 am Short, one to two minute self-introductions by managers of eleven participating companies on objectives, proposed areas of focus and concerns of the company in engaging in Bhoochetana PPP. 10:20 am to 10:30 am Presentation on key parameters for decision in structure the Bhoochetana PPP by Nancy Barry and Dushyant Mullur, Action Platform Coordination Team 10:30 am to 12:15 pm Discussions and agreements among participants on: Districts for focus Key areas for action overall and by district including Crops for focus Packages of inputs, irrigation, farm mechanization Advisory services-combinations of group training, demos, on farm extension, ICT innovations Value chain development in fruits and veg, dairy, cereals, other Financing and crop insurance With allocations of responsibility by company Outreach and impact targets Cost estimates Proposed incentive structure and role of government 12:15 pm to 12:45 pm Discussion of other PPPs in one to two additional states to be organized by Action Platform in CY 2013. 12:45 pm to 1:00 pm Summary and discussion of next steps led by Dr. Wani and Nancy Barry

List of participants Organization Name Position ICRISAT Dr S Wani
Head of Watershed and Integrated Watershed Management Project ADM Agro T.P. Shenoy Head, Agri Product Services Coromandel JVNS Giri Deputy General Manager, Retail Shirisha Gopu Manager, Retail ITC Krishna Kumar Manager Jain Irrigation Dr P Soman Senior Vice President Mahindra and Mahindra Anirban Ghosh Vice President, Strategic Planning and New Business development Nokia BV Natesh Director, Life Tools Nuziveedu Seeds S.V.R. Rao Senior Vice President, Coordination and Strategic Planning Vijay Singh Patel DGM, Special projects StarAgri Nagendra Reddy Area Manager Collateral Management United Phosphorous Ltd Ashok Reddy General Manager Paul Austin ESP Nancy Barry President Action Platform Coordinator Beatriz Guillen Associate Action Platform Dushyant Mullur Anurag Agarwal Priyanka Kumari

Karnataka Bhoochetana PPP objectives
To identify and scale up best-bet options on soil, crop and water management), including improved cultivars to enhance productivity by 20% of the dry land crops in selected districts of Karnataka To build the capacity of the stakeholders—farmers and consortium partners—to implement improved practices for sustainable management of natural resources and enhancing productivity in dryland agriculture. To train DoA staff in stratified soil sampling at villages, analysis of micronutrients, preparation of GIS-based soil maps. Crops for focus Basic dry land crops: finger millet, maize, soybeans, groundnuts, sorghum, sunflower. Beginning in 2012, added rice, sugar, cotton, pulses and oilseeds. Potential for fruits, vegetables and dairy. Districts Now covers all 30 districts in Karnataka over 5 million ha. Executing agents Department of Agriculture of Karnataka and ICRISAT, operating with a consortium of academic, research and government institutions. Now want to engage private sector companies. 1 2 3 Bhoochetana aims at improving the lives of 3.6 million smallholder farm families in four years, increasing crop productivity by 20% and farmer incomes.

Bhoochetana Project key elements to date and moving forward with private sector
Key project elements Focus has been on improving productivity through: Water management measures e.g., furrows; Making available to farmers ICRISAT soil testing results Extension services on improved methods; and Distribution of improved nutrients and cultivars. Now want increased focus on irrigation and farm mechanization. Increased recognition of the role of value chains, market links, financial services. Agri-finance Value chains Bundling inputs and know-how Irrigation, recharge, watershed Farm mechanization Crop and weather insurance Recommend nutrients to farmers based on soil test results Adopting integrated natural resource management approach with increased emphasis on drip irrigation Provide farm mechanization and implements to increase productivity Provide improved seeds and plant protection Use lead farmers, demos, ICT to train farmers in best agricultural practices Current focus Recognize importance

Areas for action in Bhoochetana PPP
Key Potential Areas for Action under PPP Packages of practice and input bundling: seed production and supply, fertilizer, plant protection. Extension, demos, advice, information solutions including use of ICT. Water solutions: watershed management, check dams, individual ponds, wells, irrigation. Farm mechanization solutions: tractors, equipment, implements. Marketing solutions and value chain creation in selected commodity groups. Financing solutions: for farmers, agro-entrepreneurs.

Strengths of participating companies
Other participants Coro mandel ITC Jain Mahin dra Nokia NSL UPL Improved seeds, saplings, tissue culture Plant protection Fertilizer mixes Drip Irrigation Farm mechanization Value chain operations Advisory services IT offerings –farmers, companies Water management Financial services SBI, top private banks Crop insurance ICICI Lombard, AIC Storage StarAgri S C S S S S B B B Company involvement in supplying, providing or serving as a platform or integrator for products and services to farmers

Functional areas in which companies would like to participate
Coromandel ITC Jain Irriga tion Mahindra Nokia Life Tools Nuzi veedu Seeds StarAgri ADM UPL Technical services to farmers Extension services Mobile-led Demo plots Soil testing ICT services Input supply to farmers Fertilizer Improved seeds Plant protection Water resource management Land preparation e.g. furrows Water harvesting Drip irrigation * Farm mechani-zation Tractors Farm equipment, implements Build value chains with farmers Basic rainfed commodities* Soybeansunflower, corn Other targeted crops ? Pulses, bananas Other potential commodities* Chili, potatoes

Commodity focus of companies participating in the PPP meeting
F and V Cereals Legumes Cotton Other Coromandel Tea, Coffee, Sugar ITC Potatoes Wheat Soybeans Spices, Coffee Jain Irrigation Mangoes, bananas Rice Pigeon pea Sugar Mahindra Nokia Life Tools Livestock, Poultry Nuziveedu Seeds Vegetables Corn UPL Corn, rice millet

Commodities in which companies would like to participate
Coro-mandel ITC Jain Irrigation Mahindra Nokia Life Tools Nuziveedu Seeds UPL Basic Rainfed Commodities Millet Groundnut Maize Sorghum Oilseeds Other crops targeted under Bhoochetana Pulses Paddy Cotton Sugar Other potential commodities for focus Fruits, vegetables Spices Dairy

All companies participating in the proposed PPP have operations in Karnataka
Present in Karnataka Coromandel ITC Jain Irrigation Mahindra Nokia Life Tools Nuziveedu Seeds UPL

Potential, complementary roles of participating companies in PPP
Agri-finance SBI HDFC Bank Axis Bank ICICI Bank Value chains ITC Jain Mahindra Bundling inputs and know-how UPL-seeds, plant protection NSL-seeds Coromandel –fertilizer Nokia Life-ICT Irrigation, recharge, watershed Jain-MIS Mahindra-MIS ITC-water management Farm mechani zation Mahindra Crop and weather insurance ICICI Lombard AIC Modular crop development covering crop production procurement and marketing Proprietary high yield hybrid seeds Improve high-tech cultivation practices for better yields Precision water and fertilizer management Personalized, customized information via mobile phones to farmers Farm mechanization Balanced integrated nutrient management Demos and agro-service centers

Potential size and scope of PPP over 2013 to 2017
Coro mandel ITC JISL Mahindra Nokia Life Tools Nuzi-veedu UPL Number of districts 1 or 2 3 to 5 6 to 10 Type of districts Close to market, decent soil and water conditions Difficult areas—mainly relatively remote, rainfed A mix of districts with different conditions Number of farmers in PPP 50,000 to 100,000 100,000 to 200,000 200,000 to 500,000 500,000 to 1 million Number of farmers by company 10,000 to 20,000 20,000 to 50,000

Potential arrangements and incentives for participation in Bhoochetana PPP
Results oriented payments—fees paid by Karnataka government based upon productivity gains by small farmers Fixed payments for material and services Incentive structures similar to PPPs under FICCI-SFAC one million farmer initiative

District: Chikmagalur
Number of farmers 260,000 Total cultivated land 179,000 Ha Total cultivated land, by crop, in ha: Paddy 20600 Finger millet 27000 Sorghum 968 Maize 7500 Sunflower 5200 Groundnut 2400 Green gram 1900 Fruits and vegetables grown Potato Tomato Banana Mango Mandarin Chilli Pepper Cardamom Ginger Annual rainfall 1925mm Soil conditions Red soil, Black soil Proximity to Tier 1 city: High (Bangalore 50Km)

District: Tumkur Number of farmers Total cultivated land 684,415 Ha
Total cultivated land 684,415 Ha Total cultivated land, by crop, in ha: Green gram 5000 Maize 9965 Finger millet Groundnut 87050 Fruits and vegetables grown Onion Tomato Brinjal Gherkin Banana Mango Pomegranate Tamarind Ginger Annual rainfall 540mm Soil conditions Red, Red gravelly clay Proximity to Tier 1 city: High ( Bangalore 50Km)

District: Raichur Number of farmers 360,000 Total cultivated land
180,000 Ha Total cultivated land, by crop, in ha: Pearl millet, 18,020 Pigeonpea 20182 Groundnut 2990 Sunflower 8575 Cotton 9260 Fruits and vegetables grown Potato Tomato Banana Mango Sapota Mandarin Chilly Pepper Cardamom Ginger Annual rainfall 705mm Soil conditions Mixed red, Black, Medium black Proximity to Tier 1 city: Low (Hyderabad 500Km)

District: Bijapur Number of farmers 34,000 Total cultivated land
103,000 Ha Total cultivated land, by crop, in ha: Maize 24,080 Pearl millet 17,742 Pigeonpea 44,788 Green gram 2,928 Sunflower 8,371 Groundnut 7,200 Fruits and vegetables grown Brinjal Tomato Okra Grapes Pomegranate Lemon Chili Turmeric Tamarind Annual rainfall 578mm Soil conditions Black soil, Red Soil, Mixed Proximity to Tier 1 city Low (Hyderabad 500 Km, Bangalore 600Km)

District: Chikballapur
Number of farmers Total cultivated land 180,415 Ha Total cultivated land, by crop, in ha: Finger millet 37170 Pigeonpea 6932 Groundnut 29351 Maize 36992 Field bean 4780 Fruits and vegetables grown Onion Tomato Brinjal Potato Chilly Grapes Banana Mango Tamarind Ginger Floriculture Annual rainfall 740mm Soil conditions Red sandy, Red sandy loamy Proximity to Tier 1 city: High ( Bangalore 30Km)

District: Mysore Number of farmers Total cultivated land 150,000 Ha
Total cultivated land 150,000 Ha Total cultivated land, by crop, in ha: Finger millet 13850 sorghum 3,700 Maize 10,454 Cowpea 5,423 Black gram 1,177 Groundnut 2,000 Cotton 16,000 Fruits and vegetables grown Tomato Onion Brinjal Banana Mango Sapota Ginger Turmeric Annual rainfall 780mm Soil conditions Red sandy, Red loamy, Deep Black Proximity to Tier 1 city: High

District: Hassan Number of farmers Total cultivated land 400,000 Ha
Total cultivated land 400,000 Ha Total cultivated land, by crop, in ha: Finger millet 16,830 Cowpea 5,602 Green gram 5,600 Sunflower 1,155 Fruits and vegetables grown Tomato Brinjal Chilli Banana Mango Sapota Lemon Ginger Pepper Vanilla Annual rainfall 740mm Soil conditions Red sandy, Red sandy loamy Proximity to Tier 1 city: Medium (Mangalore 150Km)

Crop and company mapping by District - Bijapur
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, brinjal, okra, lemon, pomegranate, grapes Cereals Maize, pearl millet Pulses Pigeon pea, green gram Oilseeds Sunflower, groundnut Other Chilli, turmeric, tamarind

Crop and company mapping by District - Tumkur
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, onion, brinjal, gherkin, mango, banana, pomegranate Cereals Finger millet, maize Pulses Green gram Oilseeds Groundnut Other Ginger, tamarind

Crop and company mapping by District - Chikmagalur
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, potato, mango, banana, mandarin Cereals Maize, paddy, finger millet, sorghum Pulses Green gram Oilseeds Groundnut, Other Chilli, pepper, cardamom

Crop and company mapping by District - Raichur
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, potato, mango, banana, mandarin Cereals Pearl millet Pulses Pigeon pea Oilseeds Groundnut, sunflower Other Chilli, pepper, cardamom, ginger,

Crop and company mapping by District - Chikballapur
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, onion, brinjal, potato, mango, banana Cereals Finger millet, maize Pulses Pigeon pea Oilseeds Groundnut Other Floriculture, tamarind

Crop and company mapping by District - Hassan
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, brinjal, sapota, mango, banana, lemon Cereals Finger millet Pulses Cow pea, green gram Oilseeds Sunflower Other Chilli, ginger, pepper, vanilla

Crop and company mapping by District - Mysore
F and V Cereals Pulses Oilseeds Cotton Other Coromandel ITC Jain Mahindra Nokia Nuziveedu UPL Fruits and vegetables Tomato, brinjal, onion, sapota, mango, banana, sapota Cereals Finger millet, sorghum, maize Pulses Cow pea, black gram Oilseeds Groundnut Other Ginger, turmeric

Crops for focus by district and company
Coromandel NSL Nokia UPL ITC M&M Jain StarAgri ADM Agro Bijapur F&V All yes all Cereal corn Corn, pearl millet Other cotton Oil seeds forage, pulses Pulses: pigeon pea Sugar cane sunflower Chikmagalur paddy coffee Raichur Chilies pearl millet Yes paddy Cotton Tumkur Yes, baby corn Finger miller, corn, paddy Pulses, oilseeds

60 distributors/dealers
Geographical footprint by district-dealers (D), field agents (FA), procurement centers (P), other. Bijapur Chikmagalur Raichur Tumkur Coromandel 6 stores 1 store 13 stores 4 stores NSL 3 distributors 50 dealers 9 distributors 126 dealers Nokia UPL 60 distributors/dealers 16 UPL personnel 35 distributors 9 UPL personnel 83 distributors 13 UPL personnel 31 distributors 4 UPL personnel ITC M&M 1 Samriddhi Center Jain 50 distributors 1 depo 50 Jain personnel 10 distributors 10 Jain personnel 6 distributors StarAgri ADM Agro

Targets by FY2017/18 – productivity and net income increases by crop
Focus crop Targeted number of farmers Yield per acre today Bijapur 1. 2. 3. Chikmagalur Raichur Tumkur Chikballapur Hassan Mysore

Functional contributions by district by company
Coromandel NSL Nokia UPL ITC M&M Jain StarAgri ADM Agro Bijapur Inputs X Fertilisers and seeds Seeds (cotton, corn, vegetables) X Crop protection and seeds X Planting material Irrigation Advice Procurement X (sunflower) Storage Other Retail platform farm mechanization Solar power Chikmagalur solar

Functional contributions by district by company (cont).
Coromandel NSL Nokia UPL ITC M&M Jain StarAgri ADM Agro Tumkur Inputs X X planting mat Irrigation Advice Procurement Storage Other Retail platform Farm mech Solar power Raichur Inputs X Planting material Irrigation Advice Procurement Storage Other Retail platform solar WHRF

Functional contributions by district by company (cont).
Coromandel NSL Nokia UPL ITC M&M Jain StarAgri ADM Agro Mysore Inputs Irrigation Advice Procurement Storage Other

Companies prepared to take leadership of integrated approaches by district
Coroman-del NSL Nokia UPL ITC Mahimdra Jain StarAgri ADM Agro Bijapur Chikmagalur Raichur Tumkur Chikballapur Hassan Mysore

Targets by FY2017/18 – productivity and net income increases by crop
Focus crops Targeted yield increase per acre Net income increase by participating farmers 1. 2. 3. 4. 5. 6.

Key innovations to increase farmer productivity and incomes—push on value chain development and buy-back Key innovations Source For vegetables, precision farming package. Advice Jain Irrigation For fruits (mango, pomegranate, banana) high density planting Cotton package. High density planting Jain Irrigation / NSL / UPL (plant protection) Sugar cane package. Intensive production. Solar energy Saflower (oil seeds). Agronomy package to increase yield Hybrid seeds in corn NSL / UPL Pulses. Weed control UPL Forage. Innovative seeds and package of practices Chilies. ICM package for improving quality and productivity with innovative agri-extension model ITC Procurement + partnerships ADM Agro Coromandel

Estimated cost per functional area in targeted crops per acre
Focus crops Irrigation Advice Procurement Storage Other 1. 2. 3. 4. 5. 6.

Potential incentive elements
Proposed incentive structure by government of Karnataka to participating companies Potential incentive elements Proposed incentives Percentage of cost of advice provided, linked to yield increases achieved and/or net income increases Companies managing subsidies Company management of government subsidies on inputs Partial payment for companies cost in building small farmer integration into value chains Other

Other support needed by government of Karnataka
Infrastructure. E.g. water, land, energy

Major value add of Nuziveedu Seeds to the Bhoochetana PPP
Major areas of value addition Improved cultivation practices for better yields High quality, high yielding hybrid seeds Training farmers, field demos on Improved practices Knowledge and experience Technology driven company with one of the best R&D facilities. Successfully completed PPP for cotton at Maharashtra increasing average yields by 50% in first year. Activities and presence in Karnataka Seed sales in cotton, maize, paddy and oil seeds in all parts of Karnataka with 80 distributors and 3,200 dealers in Karnataka. Last year turnover 80 crores in Karnataka. Office in Davengere, sales force of 50 in Karnataka Experience in other dry land areas In Maharashtra PPP, 10,000 acres mainly rainfed. Trained farmers for high density cultivation by following integrated pest and nutrient management> Facilitated sales with production of Kapas and sale in bales for better earnings.

Major value add of UPL to the Bhoochetana PPP
Major areas of value addition Plant protection to increase productivity and profitability to farmer, combined with technical advice and extension services to farmers. Provide quality inputs. For example, provides research- based improved Hybrid seeds to increase productivity (rice, sunflower, corn, millet, sorghum, oilseeds and forage) Dairy – Milk productivity increase Knowledge and experience Strong R&D and technical team in the field Quality products to farmer with ISO standards More than 40 years in Agri input field and services to farmers Experience, presence in Karnataka Network with more than 1,500 customer base along with strong marketing team of 22 technical staff and 120 extension workers Participating in all departmental programs in seed supplies subsidy program (sunflower, jower, maize, millet, Seed dressing to PP chemical supplies through RSK’s Activities in other dry land areas Good coverage in most dry land crops like sunflower, jowar, bajra, maize, pulses, cotton and forage crops. UPL-Advanta experience with PPP in MH, GJ, OR. Input supplier partner with government in all eastern states.

Major value add of Coromandel to the Bhoochetana PPP
Major areas of value addition Balanced, integrated nutrient management, promoting right nutrients e.g. fertilizer, SND based on soil test results Demos to create awareness on performance of SBZ and water-soluble fertilizers Soil health by use of organic manure Knowledge, experience Has done mass soil tests and encouraged farmers to apply fertilizers based on need of farm which will help prevent indiscriminate use of fertilizers, through SBZ, OC and all nutrients tests. Promotes entire range of micronutrients and water-soluble fertilizers both through trade and retail channels- Has been promoting use of organic manure to encourage soil health Experience, presence in Karnataka Currently Coromandel is marketing fertilizers, organic, SND, pesticides through its trade and retail networks, Namma Gromor Centers in Karnataka with 100 retail stores in the state and another 100 in 2013

Major value add of Jain Irrigation to the Bhoochetana PPP
Major areas of value addition Technical know-how for high tech cultivation Precision water and fertilizer management – provision of hardware and regular technical support. Experience in high tech cultivation practices of many crops Knowledge, experience Successful models of water resource management and farm irrigation Experience, presence in Karnataka Bangalore and Bijapur offices. Over 220 Jain dealers with 265 dealer staff. Engineers and agronomists in every district. ; 63 engineers and 17 agronomists. Project coordinator and state manager with two major stocking points. Experience in other dryland areas In AP, Tamil Nadu, Maharashtra, Rajasthan and Gujarat.

Major value add of ITC to the Bhoochetana PPP
Major areas of value addition Improve crop competitiveness and farmer profitability in crops including chili, turmeric, tobacco. Capacity building: community water harvesting to restore and improve water catchment area Agro service centers to improve farmer profitability Knowledge and experience Modular crop development in identified districts e.g. Mysore, Hassan. Portfolio of crops approach for sustainable supply chains: production, procurement and marketing Agro service centers—farmer education and profitability Capacity building: soil health and water management Experience, presence in Karnataka Integrated crop management, production and procurement of turmeric, tobacco Activities in other dry land areas Integrated crop management, value chain development for quality chilies and cumin on food safety platform to maximize farmer profitability

Major value add of Mahindra to the Bhoochetana PPP
Major areas of value addition Consistency and regularity of delivery of services Accessibility of machinery Knowledge and experience in Karnataka 50+ dealers selling farm machinery 12 Samriddhi centers providing extension services 20+ MIS dealers Activities in other dry land areas One watershed project, More than 150 Samriddhi centers

Major value add of Nokia Life Tools to the Bhoochetana PPP
Major areas of value addition Personalized and customized information to farmers covering inputs, plant protection, mechanization. Nokia Life’s information services can create a consistent connection with farmers. Can provide a data gathering solution to platform companies engaged in this PPP to effectively manage and track their field extension activities Knowledge and experience Nokia is a pioneer in customized agri information dissemination and hope to provide this expertise to the ecosystem managing the PPP Activities and presence in Karnataka Nokia has a robust distribution and retail infrastructure which can be leveraged for the PPP

Ranking potential PPPs
Criteria MH Guj MP Bihar Tamil Nadu Haryana Punjab Rajas-than Strong state government commitment to PPPs Strong concentration of small, progressive farmers Major unmet potential in agriculture, which can be addressed by integrated solutions Areas in which participating companies have strong footprints. Areas in which companies are looking to expand Strong potential in high value added commodities eg. F&V and dairy Adequacy of rural infrastructure

Annex 1. Platform companies developing or already involved in PPPs

Platform companies developing or already involved in PPPs
Company Current and proposed PPPs Geography ITC Currently 5 PPP programs to replace old varieties with improved varieties with IARI, DWR, CTRI, PAU,NRCS reaching 10,000 farmers. Plan to reach 25,000 farmers by 2020 across multiple states covering wheat, soybean, potato, tobacco Multiple states JISL Mobile training bus has been started for training the Mango farmers in Andhra Pradesh. Productivity enhancement measures through individual growers capacity building are being implemented through JAINGAP, Sustainable Agricultural Codes, PPP Projects with Government of Maharashtra, NGOs, dealers, supplier network, farmers societies, cooperatives etc Maharashtra PPP to provide MIS technology to small and medium farmers with technical support. Extend MIS to an estimated 500,000 ha covering 1,000,000 farmers through collaborations with other Input companies/ Government agencies. Mahindra Developed watershed PPP in MP, with 20,000 individuals to be impacted by water supply of watershed operation by FY 2014. Madhya Pradesh Nuziveedu Seeds Operating PPP at Vidharbha region for 10,000 acres with more than 3,000 farmers. Planning for PPP in Maharashtra, UP, AP, KN states, reaching 0.5 mn farmers in 2014 and 1 mn by 2020 Maharashtra, UP, AP, KN Source: Company action commitments

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