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from the

publishers desk
Ever wondered how much an average Indian meal travels to get from farm to plate?
Believe you us; it is definitely not as simple as it sounds!
Our Cover Story Agriculture Services: A Journey from Farm to Plate enlightens
readers on the wide network of agricultural services, which work at multiple
levels simultaneously and throws light on its revenue and employment generating
capabilities.
Finance is crucial for every sector, and agriculture is no exception either. The article
on Agri-Finance Institutions: Major Players in Agribusiness Development talks
about the various agri-finance institutions and the crucial role they play in revitalising
the agriculture sector.
Act smart is the buzzword! The marketing of agriculture products is undergoing
rapid transformation and Organic Certification: Smarter Way to Market
Agriculture Products succinctly elaborates on this emerging trend.
India is finally waking up to the potential of Research and Development (R&D) in
agriculture. The article Agricultural Research in India spells out the evolution and
development of research, and lists out the benefits it entails.
Learning from the better practices of others has always been our forte. In the
International section, the article on India-South America Trade Ties: An Insight
on Marketing Agricultural Produce and Preventing Crop Loss makes for an
interesting and insightful read.
The case study Soil Based Integrated Management of Flood and Flood Plain
Soils is an in-depth and well-researched piece of work, which talks about the
judicious management of flood.
International cooperation is the way to go forward. And BRICS Agriculture Trade
Jumps Manifold; Trends Reveal Healthy Cooperation shows the jump in the
volume of trade within BRICS.
Theres plenty in store in this edition of Business of Agriculture (BoA). Keep
yourself updated with the News & Happenings from the agriculture industry,
spread across the pages.
Enjoy Reading!
Linda Brady Hawke
Publisher

Contents

September-October 2014

September-October 2014

Edited, Printed & Published by


Linda Brady Hawke

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L. B. Associates (Pvt.) Ltd
H-108, Sector 63, Noida - 201301
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News & Happenings

Managing Editor
William Hawke

INNOVATION

Editor-at-Large
Alankar Srivastava

22 Agri-finance Institutions: Major Players in


Agribusiness Development

COVER STORY
14 Agriculture Services: A Journey from Farm to
Plate

william.hawke@gmail.com

Desk Editor
Aamir H Kaki
Business Manager
Maninder Kumar

27 Bids Adieu to Traditional Marketing


Techniques to Harvest Gold from Agriculture

Asst Manager - Brand & Event


Shekhar Upadhyay

TECHNOLOGY

maninder@lbassociates.com
Tel: +91 120 4727117

events@lbassociates.com

Circulation
Rahul
rahul@lbassociates.com
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Atul Kumar
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DISCLAIMER: The views and opinions expressed


in this magazine are solely those of the authors
and do not necessarily reflect those of the editors
or publisher. Although all efforts have been made
to ensure the complete accuracy of text, neither the
editors nor publisher can accept responsibility for
consequences arising from errors or omissions or
any opinions or advice given.

4 Business of Agriculture | September-October 2014

30 Organic Certification: Smarter Way to Market


Agriculture Products
R&D
35 Nematode and Soil Fungal Biological Control
Solutions: The Nico Orgo Viewpoint
38 Agricultural Research in India: Evolution and
Development

Social Entrepreneur
42 Farmer to Consumer Initiative
CASE STUDY
48 Mangrove Restoration through PPP
52 Soil Based Integrated Management of Flood
and Flood Plain Soils
FINANCE
58 Agri Finance Consultancy to Farmers: Crucial
to Bridge the Knowledge Gap
60 Agriculture Consultancy Services:
Strengthening and Transforming Agribusiness
Agriculture
INTERNATIONAL
66 BRICS Agriculture Trade Jumps Manifold;
Trends Reveal Healthy Cooperation
70 India-South America Trade Ties: An Insight
on Marketing Agricultural Produce and
Preventing Crop Loss
74 International News

Business of Agriculture

September-October 2014

Search for Better Varieties of Maize Continues

NEWS & HAPPENINGS

HAPPENINGS

Scientists are trying to develop heat-stress resilient, high-yielding and nutritionally enriched maize varieties
to face the challenges of global warming.
The Global Maize Programme, an initiative of the International Maize and Wheat Improvement Centre, is
intensively pursuing the development of heat-stress resilient, high-yielding and nutritionally enriched maize
varieties in order to face the challenges of global warming and meet the global demand for maize, the
agencys director Prasanna BM has said.
With the financial assistance of United States Agency for International Development (USAID), the
CIMMYT has undertaken Heat-Stress Resilient Maize for South Asia, a five-year project, for developing
heat tolerant and high-yielding maize varieties, specifically suitable for South Asian climatic conditions. The
project has commenced in 2012 and will end in 2017, Mr. Prasanna said at a press conference at the
University of Agricultural Sciences (UAS).

What about
Irrigation and
Drinking Water
Scheme, ask
Farmers
Weak Monsoon Hits
Kharif Sowing
The cultivation of kharif crops is lower by 44.91 percent
so far in Maharashtra, Madhya Pradesh and Rajasthan
compared to the corresponding period last year owing
to delayed and deficient southwest monsoon. The latest
official figures show that the total kharif sowing is lower by
281.84 lakh hectares at 345.60 lakh hectares planted so far.

Expressing their disappointment over


the Yettinahole project envisaging
diversion of the Nethravati, farmers
in Dakshina Kannada urged the
Karnataka government to first provide
a comprehensive irrigation and drinking
water scheme for the district.
Speaking at a meeting, Karnataka Rajya
Raita Sangha leader Ravikiran Poonacha
said Farmers in the district would not
allow implementation of the project
unless the government meets their
demand.

The sowing of paddy is lower by 17.38 percent compared


to last year, pulses is lower by 60.19 percent, coarse
cereals by 62.04 percent and total oilseeds plantation is
lesser by a whopping 72.12 percent over last year.

The district is bereft of any irrigation


scheme and farmers are forced to spend
a lot to irrigate plantations and paddy
fields. In such a situation, there is no
question of allowing the river diversion
project, he said.

The sowing of cotton, which is hit by delayed monsoon


in parts of Gujarat and Maharashtra, is lowered by 44.30
percent than last year in the corresponding period.
Sources said rainfall activity in parts of Maharashtra,
Madhya Pradesh and Rajasthan in the last few days would
have improved sowing which will be reflected in the
statistics released next week.

Farmers in the district were kept in


the dark about the project even as no
scientific study appeared to have been
carried out on the quantum of water
available in the Nethravati during the
monsoon and the summer added Mr
Poonacha.

6 Business of Agriculture | September-October 2014

Phailin-Hit Mushroom Farmers may not


get Compensation
Mushroom growers of Ganjam district in Odisha fear that they may not get any compensation for their
losses during cyclone Phailin in October 2013.
Their fear is based on information they got from the office of the deputy director of horticulture in
Berhampur through an application filed under Right to Information (RTI) Act. A mushroom grower of the
district, B Narasinga Rao had filed this RTI application to know the number of mushroom cultivators, who
had been affected by Phailin.
In its submission of information under RTI Act, the office of the deputy director of horticulture mentioned
that number of mushroom cultivators affected during the cyclone was not available in their office. Mr Rao
said it was ironical that the very department which should have kept track of mushroom cultivation and
the farmers involved in it has not kept track of their losses during the cyclone. According to him, in the
disbursement of compensation for agricultural losses during Phailin, mushroom growers may not get any
succour.

The government plans to use radiation


technology developed by the Bhabha
Atomic Research Centre (BARC) in order
to improve shelf-life of fruits and vegetables
especially onions, potatoes and tomatoes to
address the issue of supply side shortage,
which often results in price rise.
An inter-ministerial group convened
by Transport Minister Nitin Gadkari
apprised itself of the technology during a
presentation by BARC scientists. Among
those present were Union Food Minister
Ramvilas Paswan, Agriculture Minister
Radha Mohan Singh, Food Processing
Minister Harsimrat Kaur, nuclear scientist
Anil Kakodkar and BARC Director Shekhar
Basu.
BARC has developed a radioactive
technology for preserving agri-commodities.
We had an initial discussion on how this
technology can be used on a large scale
in the country to address supply crunch
in some vegetables like onion, potato and
tomato, Mr Paswan said.

HAPPENINGS

Govt to use Radiation


Tech to Preserve
Vegetables
Proper Caution Needed
for GM Crops
Union Minister of State for Environment Prakash
Javadekar said that proper caution has to be taken
in the context of genetically modified (GM) crops
and India cannot say no to science.
Speaking at the launch of the Fifth Assessment
Report (AR5) of the Intergovernmental Panel on
Climate Change (IPCC), he said, We have not said
no to science. Nobody can say no to science. Yes,
we have to take proper caution, we have to take
proper action. But you cannot deny it. We are not
living in Galileos times. Galileo was telling the truth
and he was punished. That was the worst day for
the world.
The event was organised by The Energy and
Resources Institute (TERI), in co-operation with the
IPCC and the Climate Development Knowledge
Network (CDKN), among others. Mr Javadekar
said he was of the firm opinion that whichever
country doesnt believe is science is doomed to fail
and will be left behind.
Business of Agriculture

September-October 2014

RBIs Scheme of Rescheduling Farm Loans comes with Riders

NEWS & HAPPENINGS

HAPPENINGS

The Reserve Bank of India (RBI) has finally agreed for rescheduling of crop loans for which the Andhra Pradesh
government lobbied hard, but with several riders that include restricting the coverage to some farm loans in
four districts and not including those taken against gold.
In a letter sent to the Chief Secretary, IYR Krishna Rao, the RBI further restricted the relief only to shortterm production loans extended by commercial, cooperative and regional rural banks in the four districts of
Srikakulam, Vizianagaram, Nellore and Krishna which it said, was based on normative criteria. Loans taken
for allied agriculture activities would not be eligible.
The other loans not eligible for crop loan scheme for reschedulement include advances against pledge or
hypothecation of agriculture produce other than standing crop, tied loans and closed crop loan accounts.
The reschedulement will be limited to a period of three years, comprising one -year moratorium and two
years reschedulement.

Cultivate New Varieties:


Cane Institute to Farmers

GI-Tagged Rice Varieties


to get a Boost

The Sugarcane Breeding Institute (SBI),


Coimbatore, has urged farmers to cultivate three
new tropical sugarcane varieties introduced by it
recently to increase production.
Inaugurating the 45 meeting of the Sugarcane
Research and Development Workers of Tamil
Nadu & Puducherry, organised by the SBI
and Kothari Sugars and Chemicals Limited, N
Vijayan Nair, Director, SRI, Coimbatore, said
that the varieties such as Co0403, Co06027,
and Co06030 would be highly suitable for Tamil
Nadu. They had been tested in different locations
of the country including Tamil Nadu. The trial
cultivation of them had given high yield than some
of the earlier varieties. Though the institute had
distributed seeds of newly notified varieties to
a group of farmers, there was a need to grow
nurseries in large numbers to improve their
popularity among farmers. Hence, sugarcane
factories should take steps to raise nurseries with
the help of farmers in their cover areas. The sugar
industry should take a lead role in popularising
the varieties, he said.

The government has chalked out plans to promote the


cultivation of four special traditional rice varieties in
the State that have been included in the Geographical
Indications (GI) registry of India.

Emphasising the need for adapting modern


technologies, Mr Nair said farmers should
come out of their age-old traditional practices.
If they followed new methods, prescribed by
the research agencies and institutes, they could
improve productivity with less water and efficient
pest management.

Farmers will be offered an incentive of `10,000 a


hectare to take up the cultivation of these unique
rice varieties. Agriculture Director R Ajithkumar said
efforts were on to work out a marketing mechanism
for the special rice varieties with the help of Oil
Palm India.

8 Business of Agriculture | September-October 2014

An amount of `2 crore has been allocated in the


annual Plan to bring 2,000 hectares of land under
cultivation of Pokkali, Njavara, Jeerakasala, and
Gandhakasala rice varieties that have received the
GI tag, signifying the unique qualities attributable to
their place of origin.

IFFCO Moves 2,640 Tonnes of


Fertiliser for Samba Cultivation
Indian Farmers Fertiliser Cooperative Limited (IFFCO)
has moved 2,640 tonnes of fertiliser for samba
cultivation.
A consignment of 2,640 tonnes of basal fertiliser has
been sourced from its unit in Paradeep, Orissa. The
consignment would help farmers in Tiruchi, Ariyalur,
Perambalur, Thanjavur, Karur, and Pudukottai districts,
said D Subramanian, Chief Area Manager, IFFCO,
Tiruchi region. The consignment included 1,800 tonnes
of IFFCO Phos (20:20:0:13) and 840 tonnes of DAP
Steps have been taken to avoid scarcity of fertiliser as
an estimated 12 lakh acres would be brought under
samba cultivation simultaneously across the central
region, he said.
Mr Subramanian said that for the first time, IFFCO has started marketing zinc sulphate to cater to the demands
of farmers.

Soon agriculturists in Dakshina Kannada


will be able to take home farm equipment
on rent as the Department of Agriculture
will open five centres, in association with a
non-government organisation, where they
will be rented out.
They will be called called custom hire
centres. A committee would fix the rent
on per-hour per-day basis to suit all types
of farmers. It would be less than the market
rent charged by private parties, according to
sources in the Department of Agriculture.
In addition to Dakshina Kannada, the
Department of Agriculture would open
the centres in all other districts in the
state in association with non-government
organisations (NGOs). A committee
headed by the Chief Executive Officers
(CEOs) of zilla panchayats would fix rent,
decide on the equipment required by
farmers and monitor the functioning of the
centres. The committee would have farmer
representatives as well.

HAPPENINGS

Karnataka Farmers to
get Farm Equipment on
Rent

Horticorp to step up
Procurement ahead of Onam
The Kerala State Horticultural Products Development
Corporation (Horticorp) is preparing to step up
procurement from the main vegetable-growing
hubs at Kanthalloor and Vattavada in Idukki district
to meet the spike in demand during Onam season.
Horticorp managing director VV Pushpangadan said,
The business at the festival fairs was expected to go
up by five or six times in the run-up to Onam.
In addition to the mega fairs named Ona Niravu, we
have opened 350 stalls and 17 mobile outlets where
customers can purchase fruits and vegetables at a
discount of 20 to 30 percent. Another 25 mobile stalls
will also be opened, he said.
The corporation is procuring vegetables from
domestic farmers through its district procurement
centres, World Markets under the Agriculture
Department, and self-help groups under the Vegetable
and Fruit Promotion Council Keralam, he added.
Business of Agriculture

September-October 2014

Events

Logistics
Conclave 2014

HD Chamber of Commerce and


Industry organised Logistics Conclave
- 2014 on July 21, at PHD House,
New Delhi. There were more than 20
speakers from both the government
and the private sectors who shared their views on
the current developments and major challenges in
the field of Multimodal Transportation, Cold Chain
and Warehousing. They also discussed the way
forward for the Indian logistics industry.
Dinesh Rai, IAS (Retd), Chairman, Warehousing
Development and Regulatory Authority (WDRA),
Government of India, the Chief Guest at the
Conclave, laid emphasis on the need for cost
effective solutions required for the logistics and
supply chain, which will be beneficial for the
manufacturing sector. He further emphasised that
the stress should be given on the promotion of
logistics in the agricultural sector as 60 percent of
the population of the country are dependent on
agriculture. He also expressed concern over the
fact that the cost of land is a major bottleneck in the
development of warehousing infrastructure.

10 Business of Agriculture | September-October 2014

Dr Santosh Kumar Sarangi, IAS, Chairman-cumSecretary, Agricultural and Processed Food


Products Export Development Authority (APEDA),
Ministry of Commerce and Industry, Government
of India, who was the Guest of Honour, apprised
the delegates that even though India is the second
largest producer of fruits and vegetables, huge
amounts of these are wasted. Due to this, the
country loses nearly `440 billion, every year. He
further apprised that in the present scenario,
India is able to store only two percent of its farm
produce in temperature-controlled environments
as against 85 percent of the leading economies
in the world. During his special address, he also
mentioned that with the adoption of modern
techniques for higher fruit and vegetable yield and
their harnessing, the State of Jammu & Kashmir in
the last three years has been able to substantially
curtail its apple wastages with the help of private
and public intervention.
Alok B Shriram, Senior Vice President, PHD
Chamber delivered the Welcome Address. He
highlighted the fact that the logistics sector in

infrastructure status to logistics as with it in place


the industry will be subject to certain entitlements,
leading to the betterment of the logistics sector.

EVENTS

India has today become an area of priority. One


prime reason for the same stems from the reason
that years of high growth in the Indian economy
have resulted in a significant rise in the volume of
freight traffic moved. This large volume of traffic
has provided for growth opportunities in all facets
of logistics including transportation, warehousing,
food supply chain, freight forwarding, express
cargo delivery, container services, shipping services
etc. During his address, he also complemented
the WDRA, for making efforts for granting

The Industry Perspective was presented by RS Bedi,


Chairman, Task Force on Logistics Management,
PHD Chamber. He emphasised the requirement
for a large number of cold storages and warehouses
in the country. He also expressed concern about
the poor maintenance of warehouses and the lack
of cold chain infrastructure in the country. In spite

Business of Agriculture

September-October 2014

11

Events

of all these drawbacks, he stated that the logistics


sector has a bright future in the country and the
expectation is that a tipping point for the industry
will soon be reached, which will propel it to greater
heights.

Singh, IFS, Joint Secretary, WDRA, Government


of India; VR Khusro, DGM, NABARD; Dr Rakesh
Gupta, General Manager, Punjab National Bank;
and, Dr C Prabhu, Partner, Rabo Equity Advisors,
New Delhi.

The Conclave was divided into three panel


discussions which were focussed on Multimodal
Transportation; Cold Chain; and Warehousing
Sector, respectively. In each session, leading
representatives from the logistics industry
expressed their views on the subject and
participants were immensely benefited from the
meaningful and valuable views of the panellists.
Some of the senior representatives from the
industry who attended the Conclave as Speakers
were: BN Puri, Executive Director, Asian Institute
of Transport Development; MS Mathur, Executive
Director/Traffic/PPP, Ministry of Railways,
Government of India; Vinod Nautiyal, Chairman and
Managing Director, EXPAN Logistic; SL Sharma,
President, The Air Cargo Agents Association of
India (ACAAI); Vanish Ahluwalia, General Manager
- Northern Region - NVOCC, All Cargo Logistics
Ltd; Pankaj Kumar, Director, Ministry of Food
Processing Industries (MOFPI), Government of
India; Rajesh Agarwal, Director, Crystal Group;
Jasmohan Singh, MD, Frick India Ltd; Vijit Madan
- Head Sales & Service, Thermo King (Climate
Solutions), India; Pankaj Mehta, Country Head
and Director, Carrier Transicold India; Deepak
Takkar, Vice President - Sales & Marketing and GM,
Emerson Climate Technologies (India) Ltd; Ranvir

Vinod Nautiyal, Chairman and Managing Director,


EXPAN Logistic and other speakers from the
logistics industry, who attended the conclave,
were quite hopeful that the future is bright for
the logistics industry in India and it is perhaps an
opportune time to dive deep into certain specific
developments those in the pipeline as well as
those that must be focussed upon in the near future
which could potentially overhaul the way India
moves, stores and delivers.

12 Business of Agriculture | September-October 2014

Sudhanshu Pachisia, Co-Chairman, Task Force on


Logistics Management, PHD Chamber delivered
the formal Vote of Thanks and Dr Ranjeet Mehta,
Director, PHD Chamber concluded the conclave
with his concluding remarks.
Leading organisations both from the government
and private sector that sponsored this event were:
WDRA; Safexpress - Official Supply Chain Partner;
EXPAN; NABARD; Navigators Logistics Pvt Ltd;
Satkar Logistics - Lanyard Sponsor; MJ Logistics
- Delegate Kit Sponsor; Frick India Ltd; Crystal
Logistic Cool Chain Ltd; Centre for Continuing
Education (CCE) - UPES & ORIGO and the
media partners were Cargo Talk; Cargo Connect;
Logistics Times; Infra Log & Business of Agriculture.

COVER STORY

Agriculture
Services
A Journey
from Farm
to Plate
By Alankar Srivastava

14 Business of Agriculture | September-October 2014

Once the food is processed, it is manufactured


and packaged. Post that, they enter an extensive
distribution network that brings products from the
manufacturer to various retail outlets spread across
the country.
The transportation, warehousing, cold storage,
retail outlets, etc are all vital segments, playing
crucial roles in the supply chain. Nowadays, even
perishable food can travel long distances with

COVER STORY

ver wondered how much an average


Indian meal travels to get from farm
to plate? Believe you us; it is definitely
not as simple as it sounds! Rather it
is a fairly long and complex process,
encompassing a wide network of services working
at multiple levels simultaneously.

quality intact, thanks to modern, high-speed


methods of transportation trucks, trains, and
planes and refrigeration and cold storage
network.
The extensive distribution networks have led to the
consumer being the king, who is spoilt for choices
when it comes to variety in food and fibre products.
Business of Agriculture traces the journey of food
products from farm to plate, sneaking a peek into
each and every aspect of distribution and storage
network.

Warehousing: The Protector and


Guarantor
A scientific storage structure specially constructed
for the protection of the quantity and quality of

Business of Agriculture

September-October 2014

15

COVER STORY

stored products, warehouse plays a crucial role.


The products stored in warehouses are preserved
and protected against rodents, insects and pests.
They also ensure that the moisture and dampness
dont play spoilsport. Warehousing is an integrated
scheme of scientific storage, rural credit, price
stabilisation and market intelligence, and is
intended to supplement the efforts of cooperative
institutions.
Storage of produce is an important task. If the
crop grains are to be kept for longer time, they
should be safe from moisture, insects, rats and
micro-organisms. The fresh crops contain more
moisture. If freshly harvested grains are stored
without drying, they may get spoilt, thus losing their
germination capacity. Therefore, prior to storing
them, the grains should be properly dried in the sun
to reduce the moisture content. This also prevents
the attack by pests, bacteria and fungi. Farmers
store grains in jute bags or metallic bins. However,
large scale of storage is done in silos and granaries.
For storing large quantities of grains in big godowns,
specific chemical treatments are required.
According to global property consultancy Knight
Frank, Indias warehousing requirement was

16 Business of Agriculture | September-October 2014

expected to grow at an annual average rate of nine


percent to 1,439 million sq ft in 2019 from 919
million sq ft in 2014.
The India Logistics and Warehousing Report 2014
said that the governments renewed focus on
incentivising the manufacturing sector will boost
growth of warehousing. The logistics market will
reap the benefits of this growth in the coming
years. Additional demand for warehousing space
per year will be around 104 million sq ft till 2015,
and will entail investments of about `15,000-16,000
crore every year, the agency estimated.
The investments will go towards land acquisition
and cost of construction. Investment in warehouse
can provide an opportunity of realising returns in
the range of 12-20 percent per annum to investors
willing to explore this sector, the report said.
The Central Sales Tax structure is forcing
companies to locate warehouses in all the states
they operate in, which leads to an inefficient
supply chain. Introducing the Goods and Services
Tax (GST) will streamline the taxation procedure,
creating an effective supply chain. Its high time
that the government introduces GST, so that the

operation of the warehousing sector is streamlined


without further delay.

capacity, resulting in the wastage of over 30 percent


of agricultural produce every year.

Some of the logistics companies with a presence in


the warehousing industry include Allcargo Logistics
Ltd, Gateway Distriparks Ltd, Transport Corp of
India Ltd, Gati Ltd, Sical Logistics Ltd and Container
Corp of India Ltd.

Warehousing infrastructure developments will


also receive a thrust from the improvements in
transport modes. Property developers, who have
identified significant opportunities in warehousing
in India, are planning to build warehouses. All
these developments will enhance the availability of
warehousing services in the country.

Important Functions of Warehouses


Scientific Storage: Here, huge quantities of
agricultural commodities are stored. Various
methods of preservation are implemented, so that
the product is protected against quantitative and
qualitative losses.

When it comes to transportation, India is largely


dependent on road and rail networks. However,
the recent decision of the Food Corporation of
India (FCI) to move food grains through the sea
route from Kakinada to Kochi could alter the whole
dynamics of the transportation network. The

COVER STORY

Financing: It goes without saying that financing


holds the key to warehouse management. They
must meet the financial needs of the person
who stores the product. Nationalised banks,
especially National Bank for Agriculture and Rural
Development (NABARD) and others advance
credit on the security of the warehouse receipt
issued for the stored products to the extent of 75
to 80 percent of their value.

Transportation: A Transformation in the


Making

Price Stabilisation: By checking the tendency


to making post-harvest sales among the farmers,
warehouses help in price stabilisation of agricultural
commodities. Farmers can store their products in
warehouses during the post-harvest season, when
prices are low and sell it once they are assured of
good returns on their products. Warehouses even
inform farmers about the current market prices,
thereby preventing distress sales and apprise
them about the emergence of favourable market
conditions, so that they get the best value for their
product.
Today, there is a greater demand for advanced
and comprehensive warehousing services in India.
Two factors that have comprehensively spiked this
demand are the development of organised retail in
India and the growth of the manufacturing sector.
In order to make the most of the opportunities,
the private sector of the warehousing market must
get its act together and reorganise itself. According
to an industry report by the Associated Chambers
of Commerce and Industry in India (ASSOCHAM),
India is short of 10 million tonnes of cold storage
Business of Agriculture

September-October 2014

17

COVER STORY

government has already approved the container


movement of 20,000 MTs of rice per month from
Kakinada to Kochi. The decision to utilise sea routes
will go a long way in reducing bottlenecks in the
transportation network.

Cold Storage Facilities: Miles to Go


Due to the lack of adequate cold storage facilities
and refrigerated transport, India is throwing away
fresh produce worth billions every year. Currently,
India does not have a comprehensive cold chain
network, which is estimated to grow to `32,000 cr
by 2015.
During the past decade, there has been a
tremendous growth in the production of
horticulture produce, dairy products, and meat
products. There has been an urgent need for
creation of a cold chain network, which is crucial
for longevity of perishable food commodities.
A well-integrated cold chain network will improve
supply chains and reduce losses during produce
handling and movement to a large extent.
A vast network of cold storage is sine qua non for
dealing with the long-term storage of potatoes,

18 Business of Agriculture | September-October 2014

onions and high value crops like apples, grapes


and flowers. Potato cold storages used to
contribute 88 percent storage capacity till the year
2000. Nowadays, new cold storages are being
constructed as multipurpose facilities focussing on
all fruits and vegetables, poultry, dairy and FMCG
product categories.
With more than 3,500 companies in the whole
value system, the Indian cold chain market is highly
fragmented. Cold storage solutions comprise about
85 percent of the Indian cold chain market by
value, and the balance 15 percent is contributed by
transportation.
There are various standalone, integrated companies
and 3PL service providers offering cold storage
and transportation solutions to various food
companies. The fact of the matter is that the cold
chain business in India is a lucrative proposition for
foreign investors due to high growth prospects for
the food processing sector, along with attractive
government incentives.

Marketing and Pricing: Aiming for High


Profits
Similar to the process of production, the pricing

and marketing of agricultural commodities is


instrumental in maximising profits. Successive
governments have stressed the development of
physical markets, on farm and off farm storage
structures, facilities for standardisation and grading,
packaging and transportation through different Five
Year Plans.
The damage caused by pest infestations leads to
a reduction in market value, depending upon the
extent of damage. Most agricultural commodity
markets usually function under the demand and
supply mechanism. The government also fixes
minimum support prices or statutory prices for
certain crops in order to protect the interests
of farmers, and encourage them to increase
production. If the price of these commodities falls
below the support limit, the government arranges
to buy these crops.
The government supports organised marketing of
agricultural products through a system of regulated

markets in India. These physical markets are meant


to make sure that farmers get reasonable profits
by creating an atmosphere of fair play. This fairness
is with regard to the forces of supply and demand,
regulation of market practices and transparency in
transactions.
Most State Governments and Union Territories
have enacted legislations like the Agricultural
Produce Marketing Committee Act to provide for
regulation of agricultural produce markets. This
leads to an efficient system of buying and selling of
agricultural commodities. The mechanism ensures
a reasonable amount of profits to agriculturalists for
their crops and other agricultural products.
Basic facilities such as internal roads, boundary
walls, electric lights, loading and unloading facilities,
and weighing equipment are available at more than
80 percent of the markets. Auction platforms,
drying yards and more and more cold storage units
are very much in the offing.

COVER STORY

The Way Forward


India is an agricultural country, which remains
the mainstay of the economy. Commercialising
agricultural production is the need of the hour.
Fortunately, production and distribution of food is
finally getting the attention it deserves.
Gone are the days when agricultural marketing
was all about the farmer selling his products to the
consumer on a cash or barter basis. The journey
of food from farm to plate has undergone rapid
transformation. In fact, it has to undergo a series of
exchanges or transfers from one person to another
before it reaches the consumer.

20 Business of Agriculture | September-October 2014

There are three marketing functions: assembling,


preparation for consumption and distribution.
Selling the agricultural produce depends on the
demand of the product at that time, storage
infrastructure, etc. The products may be sold
directly in the market, or stored locally for the time
being. Moreover, it may be sold as it is gathered
from the field or it may be cleaned, graded and
processed by the farmer or the merchant of the
village.

Processing depends on the demand and quality


of the product. The task of a distribution system
is to match the supply with the existing demand.
Agricultural products in India are mostly sold by
farmers in the private sector to moneylenders/
village traders. Products can be sold at a weekly
village market. They are even sold at irregularly
held markets.
Central government organisations like Commission
of Agricultural Costs and Prices, Food Corporation
of India, Cotton Corporation of India, Jute
Corporation of India, etc. are involved in
agricultural marketing. There are also specialised
marketing bodies for rubber, tea, coffee, tobacco,
spices and vegetables.

COVER STORY

Agricultural production is much more than a


commercial activity. Rather it is a part of Indian
tradition. Marketing and allied commercial activities
associated with agriculture must be infused with
fresh perspectives. The value added services needs
to be further augmented, and policymakers should
set their priorities right.
Its time the Indian agricultural sector realises its
potential. Agriculture services are not only revenue
generating sector; it can also provide employment
that the country teeming with billions needs.

Ants employed to defend African mangoes


African farmers could effectively control fruit fly damage to citrus fruit, cashew and cocoa crops by
using the weaver ant as a method of biological control, according to researchers.
Paul Van Mele and colleagues published their work in the edition of the Journal of Economic
Entomology. The weaver ant, Oecophylla longinoda commonly found in Africa, Asia and Australia
preys on fruit flies and is already used in several Asian countries and Australia to protect citrus and
other fruits from fruit fly damage.
Fruit fly damage has a large economic impact on African farmers. As pesticides are often too expensive,
they harvest fruit before it matures to prevent damage, but an estimated 40 per cent is still lost. The
European Union and the United States have banned imports of West African mangoes due to fruit fly
damage. Van Mele and colleagues conducted a study in Benin to assess whether mango plantations
containing weaver ants had less fruit fly infestation than those with few or no ants.

Business of Agriculture

September-October 2014

21

n this current scenario of globalisation and


market-based economy, agriculture needs
reorganisation from a socialist venture to
a profit making venture. Agriculture is the
backbone of the Indian economy. I dont find
any disadvantage if Indian government focusses on
agriculture upliftment and making it result-oriented.
However, it needs proper functioning and longterm planning.

Innovation

Agriculture is the largest employer to the Indian


population; around 51 percent of the workforce
is engaged in agriculture and other agro-based
services. It contributes around 17 percent to
the GDP. Major Indian industries like textiles,
sugar, food processing and guar gum, fisheries,

animal husbandry, dairy, etc, are totally based on


agriculture. Agriculture also provides employment
opportunities for other service industries like
transportation, foreign trade services, etc.
India has the gift from God of favourable climatic
conditions where crops can be grown throughout
the year. But still Indian agriculture faces a lot
of problems. As there is no proper storage
infrastructure, there is a 17 percent post-harvest
loss in agriculture produce and in the case of fruit
and vegetable, this loss is 30 percent. All this costs
`250,000 crores annually, to India. On the other
hand, farmers do not get good prices for their
produce. Due to urbanisation, agricultural land is
also shrinking day-by-day.

Agri-finance Institutions
Major Players in
Agribusiness Development
By Ganesh Prajapat

22 Business of Agriculture | September-October 2014

Currently, NABARD is the umbrella organisation


for finance and assistance in agriculture. In addition,
nationalised banks, co-operative banks and private
banks provide financing services, under NABARD
guidelines. Non institutional agriculture finance also
plays a major role, especially for those who do not
have anything as collateral to get finance, especially
small farmers and entrepreneurs.
In broad terms, financial services can play three
major roles.
Corrective Roles: Making long-term policies and
planning for correcting existing gaps in agribusiness
or taking corrective steps to make good of loss
making activities. In the existing government backed

Supportive Roles: Farmers/entrepreneurs, while


starting a venture, put in a lot of hard work but
they need proper financial support to run the
venture smoothly. For example, if a person is
involved in dairy farming using manual methods,
it is a time consuming process. In these types of
ventures, financial institutes can assist these players
by providing them proper technical and financial
assistance, so that they can be more profitable and
result-oriented.

The scope of
agribusiness
is very broad
as it covers all
major rural
activities
and further
processing of
agricultural
products

Innovation

All these problems, we can say, are associated with


lack of long term policies and proper financing
in the agriculture sector. Central as well as State
governments needs to work on long-term concrete
steps. The scope of agribusiness is very broad
as it covers all major rural activities and further
processing of agricultural products. Agribusiness
can be a profit making industry with right
intervention of financial services. Agribusiness needs
huge financial support to modernise it. The farm
operations and allied activities like dairy, poultry,
floriculture, fishing, horticulture, bee keeping,
food processing, transportation and others, need
modernisation and automation.

system, farmers/entrepreneurs avail of subsidies to


start a venture, but the venture does not end up
profitable. Therefore, financial institutes can take
corrective steps and can guide them towards profit.

23

Innovative Roles: This is the most crucial role;


financial institutes can play toward innovation or
introduction of new technology among players.
Every year, scientists and research institutes in
India do a lot of research but these researches do
not channelize to the farm within the timeframe.
Financial institutes can promote new activities and
technology with the help of their plans and support.

Activities Which Need Financial


Assistance
Training: Manpower needs to be trained as per
current market requirements, quality standards and
latest technology, to make a venture profitable to
agriculture.
Business of Agriculture

September-October 2014

Post Harvest Handling and Management:


Most of the loss is due to improper handling of
agriculture produce after harvest or production.
Transportation: Agriculture produce needs
different transportation vehicles for different crops,
for example, perishable products like vegetables
require refrigerated vehicles.
Market Infrastructure: Lack of market
infrastructure is a bane for agriculture in India. Long
distances between farm and market lead to a lot of
post harvest losses.

Innovation

Cold Storage and Warehouses: Agribusiness


needs some decentralised storage facility so that
commodities can be stored for a small period
before it reaches to the target market.

Noninstitutional
finance
contributes
around 25% of
total finance to
the agriculture
sector

Processing Technology: Agriculture produce must


be processed properly before selling so that it can
be preserved for a long time.
International Trade Processing Centre: For
international business, agriculture produce need
dedicated infrastructure. These international
trade centres must have modern facilities to meet
international standards.

Problems with Current Financial Services


Disbursement of Finance to Incapable
Beneficiary: Sometimes, loan is disbursed
to incapable or untrained beneficiary. These
beneficiaries can misuse funds and at the end of
period they dont have anything.
Lack of Tracking Mechanism, If Funds are not
Used in a Proper Way: In current mechanism,
there is no backward tracing of beneficiary to check,
whether finance is being utilised in the specific
activity or not.
Financial Services not Reachable up to Every
Village: Most of agribusiness activities are based
at rural locations or small towns. If there are no
branches in villages; banks do not provide assistance
to beneficiaries.
Lack of Supply Chain Mechanism: Sometimes
financial institutions provide loans to any activity

24 Business of Agriculture | September-October 2014

without solution of proper marketing and supply


chain solution.
Non Institutional Finance: Non-institutional
finance contributes around 25 percent of total
finance to the agriculture sector. This type of
finance includes finance from money lenders,
landlords and middlemen. They charge higher rates
of interest.

Prefect Mechanism for Financial


Institutions
Independent: Financial institutions should be
free from any liabilities. Role of government
should be towards controlling of financial fraud,
investor protection, and action against antinational activities. Financial institutions should
work independently and launch their own schemes
and plans, which can lead agribusiness toward
profit, sustainable growth and judicial utilisation of
available resources.
Project Specialist Financial Institutions:
Financial institutions must be focussed on a specific
types of ventures instead of every type. If some
institutions are focussing on dairy then they should
focus on the same to provide specialised services.
Technical innovation can be adopted more easily in
a single project.
Selection of Beneficiary: This is important and

team. Like for financing a dairy project, cattle must


be approved by in-house veterinary doctors and
animal husbandry experts.
Team of Technical Experts for Execution: The
project must be executed by a beneficiary under
close supervision of a technical experts team. A
team must ensure that the project is going as per
plan and there are no chances of failure.

Economical Viability of Project: Financial


institutions should check economic viability of the
projects. Projects with no economic viability must
not be funded.
Training: Financial institutions should have sample
projects, so that they can provide proper practical
training to a selected beneficiary. If the beneficiary
is not comfortable with the given project then he
should be given options for another project. Without
successful completion of academic and practical
training, the project should not be sanctioned.
Land Bank: Financial institutions should have
their own land banks to develop agro-based
small units. These land banks should have all the
necessary facilities like communication, storage,
transportation, electricity, water and connectivity. It
would be easy to monitor projects and assist them
in a more professional way.
In-house Technical Team of Subject Matter
Specialist: Entire sanction projects must be
approved by the in-house team. A project should
not be approved without approval of a technical

Regular Monitoring of Existing Projects: There


must be a monthly review of existing projects. The
team should check if these are going as per the
given plan. If there is a problem, it should be solved
through a prompt response team.
Marketing Support: Institutions should be linked
to buyers. There must be clear planning that final
produce will be purchased by the target buyers. If it
is used by other industries then it must be checked
that particular industry can purchase produce/
processed product. If produce is for retail sale then
there must be infrastructure to sell it.

There must be
clear planning
that final
produce will
be purchased
by the target
buyers

Innovation

the first step towards success. Financial institutions


should select a beneficiary on the basis of his age,
educational skill, technical skills, economic level,
and social and political environment of proposed
project location.

Instalment based Finance: Projects should not


be financed one time; a complete project should
be divided into different steps. Every step must be
financed after completion of previous steps. For
example, if someone is going for a processing unit,
the first step is to acquire land; the second is to set
up a building; the third step is to avail basic facilities;
the fourth step is installation of machinery; the fifth
is to get manpower; the sixth step can be operation
and so on. It means there must be a clear chain,
connecting each step.

25

External Audits: There should be external


independent audits from time-to-time, so that
institutions can get feedback of performance and
viability of projects.
Introduction of Latest Technology: Financial
institutions should have a hold on technical
knowledge in ventures. The institutions should
promote only those projects in which they have
strong technical expertise. Financial institutions
must have links with national and international
level academic and research institutes so that
there should be free flow of latest research and
technology.
Business of Agriculture

September-October 2014

Performance Score for Next Project: This can


be a very unique feature in agribusiness financing.
If a beneficiary performs well in an existing project
then he must be awarded at some point which can
be used for further financing, such persons must be
appreciated and they should promote to educate
another new beneficiary.

In Summing Up

Innovation

Agriculture finance can change the face of India,


especially rural India. It will be a sustainable longterm employment opportunity. Private institutions
can play a large role in agriculture finance. They can
develop infrastructure for processing and further
export of agriculture produce. There are huge
possibilities in this untouched sector.

Ganesh Prajapat is General ManagerIndia at Guar Global Ltd. He is a


leading agriculture consultant and the

Strong Payback Plan: There must be a clear


payback plan that beneficiary can pay back his/her
credit within the time limit and planning. If there is
any case of causality or accident or other problems
then it must be checked, then the beneficiary
should be refinanced for some easier project,
instead of closing the project.

first, and currently the only, agricultural


consultant specialising in Guar
Cultivation and Processing. Mr Prajapat
has provided services to a number of domestic and overseas
clients including organisations from Japan, Russia Indonesia,
Saudi Arabia, Nepal, Mauritius and Tanzania.

Karnal Farmers get Climate-Smart


Basmati farmers in Karnal district in Haryana are going back to what their forefathers did before the Green
Revolution growing maize. While it is the new varieties and not the old hardy ones, maize offers an
option in view of the plummeting groundwater levels and climate vagaries in the area.
In Birnarayana village in Nilokheri block, Inderjit Singh has been planting maize for the last three years
but has reduced the area from six to one acre. There is no market for maize and the price is low. The
minimum support price is around `1,350, he says. His father grew maize and cotton many years ago, but
maize is looked down upon.
In the olden days, we considered it bad to marry into families which grew maize, he laughs. He plants
an acre of maize as an experiment. The price for basmati and wheat is much higher, but he admits that
maize is a tension-free crop with fewer pests. Maize has a low price compared to rice and wheat, but
could prove an option in the long run.

26 Business of Agriculture | September-October 2014

Bids Adieu to Traditional


Marketing Techniques to
Harvest Gold from Agriculture
By Sameer Abbas

here is no denying the fact that


agriculture is the basic source of
food for billions, and farmers are the
basic food producers. But, most of
the time, these food producers are
forced to starve due to extreme financial losses in
crop production. Although, there are many factors
responsible for such losses, the absence of a concrete
marketing strategy is the key factor that hampers the
sales prospects of agricultural produce.

Marketing, in agriculture, comprises all the


activities involved in the transformation of
commodities sold by farmers into food and fibre
products purchased by consumers. The most
evident feature of this transformation is a change
in physical appearance of the product. Form
changing activities for agricultural commodities
range from washing and grading apples to
processing wheat into Wheaties.

Innovation

Marketing is one of the most crucial elements of a


business effecting sales and productivity. It involves
getting the right product at the right price, endorsed
using the right media and selling at the right place.
Its main motive in many businesses is to generate
more sales. In fact, marketing is the life blood of
every commercial activity. You have to use marketing
strategies to create product awareness. And, this

saying applied to agriculture segments as well.


Farmers in many developing nations are stuck
to old-fashioned farming as well as marketing
techniques. Time has come to revolutionise the
too-traditional agriculture segment.

Another crucial marketing function is


transportation. Agricultural commodities must
somehow get from the farms where they are

Business of Agriculture

September-October 2014

27

Innovation

Commodity
offered for
sale by other
farmers. In
fact, commodity
markets
are highly
competitive
because there
are many
buyers and
sellers of the
same basic
commodity

grown to the retail outlets where they are bought,


and in some cases moving across a country or halfway around the world. Time is another important
aspect of marketing. Many agricultural commodities
must be harvested at a specific time, but can be
stored for later use and in some cases be consumed
year-round. Finally, in a specialised economy, most
consumers are not producers. Marketing involves
the transfer of ownership or possession from
those individuals who produce, ultimately, to those
individuals who consume the food or utilise
the fibre.
The transformation of markets changes the value
of commodities. It changes their form, place, time,
and ownership as the commodities move through
the marketing system. These functions not only
create value but also add an associated cost. You

28 Business of Agriculture | September-October 2014

can achieve profit if the value added by different


marketing functions like processing, transportation,
storage, or brokerage, exceeds the costs of
performing those functions.
Marketing, to the majority of farmers, means
commodity marketing. Farmers produce wheat,
barley, rice, vegetables, pulses or other items.
Basmati rice offered by one farmer is pretty much
like any other farmers Basmati rice. The case is the
same with wheat and other agricultural produce.
Thus, the commodity, one farmer is offering, is
freely interchangeable with the commodity offered
for sale by other farmers. In fact, commodity
markets are highly competitive because there
are many buyers and sellers of the same basic
commodity. Price variations among various market
locations seldom exceed transportation costs and
price changes over time tend to reflect seasonal or
cyclical cost differences.
Commodity marketing decisions are basically
restricted to decisions of timing. Farmers can price
their commodities through reserved contracts or
futures markets, attempting to get a price higher
than market price at the time of delivery. Or they
can store commodities for later sale, hoping that
market prices will rise more than their costs of
storage. In either case, farmers are matching with
speculators, who make their living by buying,

pricing, storing, or selling commodities. Most


conventional farmers are not particularly good
speculators. They make a living by keeping their
costs competitive and, thus, being able to stay in
business at competitive market prices.
Product marketing is different from commodity
marketing. Commodities are alike, but products
have different characteristics and marketing
values. These differences may be tangible in
nature (as in nutrient values of foods) or intangible
(as in consumer acceptance created by brand
advertising). Differentiation creates a more or less
unique market for a product, taking it out of direct
competition with other products.

Minimise middlemen profits by supplying


products directly to the place of final
consumption;
Adopt proper marketing and advertising
strategies to attract maximum buyers for your
produce;
Try to minimise marketing cost by applying
innovative techniques to increase profit margin;
Harvest high-yielding crops;
Try to sell crops directly from the field to save
transportation and storage costs;
Try to diversify your potential markets;
Tell your story to potential customers;
Do market research; and,
Keep records to help you make decisions.

Reference sources: The Role of Marketing in Sustainable


Agriculture, John E. Ikerd

Innovation

Products may also be differentiated with respect


to time. Location is another factor which
differentiates the value of products. Farmers near
population centres have a distinct advantage in
most direct marketing strategies. Pick-your-own
fruit, vegetable, or berry farms, for example, must
be located within reasonable driving distance of
a significant population centre. Farmers markets
are also logical market outlets for producers of
fresh produce from a fairly limited geographic area.
Product handling and transportation technologies,
however, have reduced the significance of location,
either as an advantage or as an obstacle in
marketing.

What Could Be Creative Marketing


Strategies?

http://grassrootsresilience.wordpress.com/2012/02/15/adoptinnovative-agricultural-practices/

Sameer Abbas is a Freelance Business


Journalist.

Curbs on Onion Trade Leave Nashik Farmers in Tears


With a dejected expression, Narhari Nagri stood next to a truck laden with 20 quintal of onions. Having
travelled all the way from his village to auction his produce at Lasalgaon Mandi Asias largest wholesale
market for onions it was another disappointing day for Narhari. He had to be content with a selling
price hovering around `14-15 per kg, much lower than he had desired. That doesnt even cover the
costs, he pointed out in distress.
Onion cultivators in Maharashtra faced devastating losses this season due to crop damage by hailstorms.
Things had only just begun to improve when the Central government recently decided to include onion
in the essential commodities list.
The government purportedly took the step in a bid to check rising prices and clamp down on hoarding
by traders as they now cannot stock more than a prescribed quantity. It, however, hampered farmers
chances of recouping their losses as prices have fallen.

Business of Agriculture

September-October 2014

29

technology

Organic Certification: Smarter Way


to Market Agriculture Products
By Narayana Upadhyaya

he Organic Industry will be a vibrant


sector in the years to come. What
we used to eat 100 years ago is now
termed as organic food. Indias
traditional farming system, agroclimatic conditions, diversity in vegetation and
culture suits to organic farming.
Consumers are demanding healthy, nutritious,
safe, and natural food nowadays. Third Party
Certification as per regional or national and/or
private standards plays an important role to verify
safety of the products marketed as Organic. In
the era of mall culture and consumerist world, one
must see products labelled as certified before

30 Business of Agriculture | September-October 2014

purchase. Each labelled product must contain


a tracking and traceability number, followed by
reference to organic production method. This
will help consumers to track the product back
to its source and also to investigate or take
corrective actions if the product does not meet
their requirement. Time has come that conscious
consumers must change their shopping habits due
to food safety concerns. Brand name or higher
price alone may not be a direct indication of
safer food.
Certification Body (CB) accredited by National
Accreditation Board (NAB), Government of India,
offers third party certification in our country. CB

accordingly rather than supply what is available.


Taste excellence and environmental sustainability
can go hand-in-hand.

An organic certification label has positive meaning


to the consumer with respect to food safety and
conservation of vital natural resources like water,
soil and bio-diversity. Third party certification also
ensures sustainability of farming systems, ecology
and economics of the farmers. It also ensures
integrity of organic products at every stage of the
food supply chain (starting from farm to shelf).

Farmers in India, from the supply side, have a


great opportunity and can market healthy produce
by opting for third party certification. Organic
certification improves the market linkage, helps
to understand the cost of production and gives
importance to family farming systems. It also
addresses the problem of soil degradation which
leads to fall in productivity. Organic farming is
comparatively less risky compared to conventional
farming.

Recent statistics shows that $63 billion worth


certified products transacted in the international
market and Indian contribution was found to be
only 0.35 percent. We, as a country, need to be
always aware of international/domestic demand
for quality food and utilise our natural resources

Organic certification certainly gives unique


marketable opportunity for a processor or a
trader in domestic as well as international markets.
Certified raw ingredients or processed products,
marketed with organic certification, fetch better
price for keeping the products healthy and for
Business of Agriculture

technology

certification activities are monitored and regulated


by NAB. CB offers certification as per Indias
National Organic Standard and takes responsibility
to guarantee consumers about the safety of the
products they certify.

An organic
certification
label has
positive
meaning to
the consumer
with respect to
food safety and
conservation
of vital natural
resources like
water, soil and
bio-diversity

31

September-October 2014

technology

The major
organic
products
exported from
India are tea,
basmati rice,
soybeans,
sugar, mangoes
(in processed
form) and
spices

taking due care from farming to final destination.


Certification guarantees that the processor/trader
kept the organic integrity of the products at every
stage of processing. Past statistics shows that out of
total organic products exported from India covers:





Fruits/Vegetables 30 percent;
Dairy Product 15 percent;
Grains/Pulses 5 percent;
Spices 10 percent;
Processed Products 33 percent;
Non Food Items 7 percent (which includes
textile and cosmetic items).

The major organic products exported from India


are tea, basmati rice, soybeans, sugar, mangoes
(in processed form) and spices. Indian cuisines
are enjoyed by many in the international market,
nowadays. Innovative products and super grains like
flax seeds, grain amaranths (which are nutritionally
dense or rich) are highly in demand in US/EU
markets. Organic certification helps in telling the
story of certified products to the consumers.
Organic and allied certificates promote the
sustainability approach in food business.

32 Business of Agriculture | September-October 2014

Certifications take into consideration issues like


climate change, carbon neutral, water neutral,
energy saving, bio-diversity etc. One needs to have
clear planning of production/processing techniques
which must be in compliance with the applicable
standards. All activities must be tightly controlled by
trained people and show continuous improvement
in every aspect to produce healthy and safe food
by respecting natural resources. By opting organic
certification, you can tackle the problem of cross
contamination, chemical residues and adulteration
of food. Every household must consume organic
products, which is the right of every citizen in India.
Modern processing techniques, which are approved
as per organic regulations/standards, can help in the
growth of Ayurvedic and food supplement products
market.

Narayana Upadhyaya, Aditi Organic


Certifications Pvt Ltd, Bengaluru.

Nematode and Soil Fungal


Biological Control Solutions

The Nico Orgo Viewpoint


By Kartik Laijawala

Nematode infestations belong to the major


stresses, affecting crop production worldwide.
The estimated annual yield losses go up to 12
percent due to plant parasitic nematodes in the
worlds major crops, points out Kartik Laijawala
director of Nico Orgo Company. He added, In
India alone, recent estimates show, nematodes are
responsible for both quantitative and qualitative
yield losses amounting to about $300 million per
year. Damages are especially big on crops like
banana, sweet potato and sugar beet.
Nematodes leave the plant of resistance and
synthetic nematicides indiscriminately destroy
beneficial soil fauna. Common fungal diseases in
soils also cause big damages. Fusarium, Pythium
and Rhizoctonia pose the greatest risk to healthy

Business of Agriculture

R&D

ematodes are a diverse animal


phylum inhabiting a very broad
range of environments. They
are ubiquitous in all habitats that
provide available organic carbon
sources. They are the planets most abundant
metazoa. They range in reproductive potential from
explosive opportunists to conservative survivalists.
Because they are transparent, their diagnostic
internal features can be seen without dissection.
They can, therefore, be identified without
biochemical procedures. They also contribute to
a variety of functions within the soil system. As
in agricultural systems, nematodes can enhance
nutrient mineralization and act as biological control
agents. They vary in sensitivity to pollutants and
environmental disturbance.

September-October 2014

35

R&D

roots and soils and, if not treated, it can even


cause complete failure in affected plants. Just like
nematodes, they exist out of sight, in the root zone
and so many farmers lack the necessary awareness
to combat them said Laijawala.

Trichoderma
Viride is
one of the
strongest soilborne fungal
species, it is
antagonistic
to several
economicallyimportant
pathogens such
as rhizoctonia
and fusarium

Chemical solutions exist but many are now unviable


in terms of what they do to the environment and
human health. Methyl bromide and carbofuran
are all recognised toxic chemicals and banned in
several parts of the world. Laijawala states, Proper
solutions have been found with organic pest
control, botanical and biological alternatives. The
solutions need to be studied and barriers to entry
must be eased for quicker uptake. He describes
three useful bio-control agents:
Paecilomyces Lilacinus: A beneficial fungus
which controls several species of nematodes;
Trichoderma Viride: A beneficial fungus
antagonistic to fungal pathogens such as
fusarium, pythium, and rhizoctonia;

36 Business of Agriculture | September-October 2014

Pseudomonas Fluorescens: A microbial agent


which protects roots against both fungi and
nematodes.
Paecilomyces Lilacinus is a parasitic fungus that
attracts the sedentary stages of nematodes. It
colonises nematode egg masses, severely affecting
nematode populations. It destroys up to 90 percent
of eggs and 75-80 percent of egg masses.
Trichoderma Viride is one of the strongest
soil-borne fungal species, it is antagonistic to
several economically-important pathogens such
as rhizoctonia and fusarium. Additionally, it acts
as a bio fertiliser due to its ability to solubilise
phosphates in the soil and quickly decompose
organic matter. Mode of action of trichoderma
viride has the ability to colonise the surface of the
seed and kill the pathogens present on its surface.
However, it can protect the plant through its life
cycle through mycoparasitism and antibiosis.

Pseudomonas fluorescens is the superman of the


bacterial world! It acts as a nematicide, fungicide
and can also aid in growth promotion. It is nonspecific in its ability to protect plants and, once
established, it works against several different
pathogens while inducing systemic resistance in
the host plant. It produces secondary metabolites
which play an important role in plant disease
suppression. Pseudomonas fluorescens aggressively
colonises the roots of the crop and suppresses
disease by inhibiting phytopathogens in the soil or
on the roots by competition.

fruits and vegetables, to plantation and ornamentals.


They can also be used for landscapes, forestry, turf
management and home gardening, which means, a
wide range of possibilities in the future.

R&D

According to Laijawala, there are several advantages


of using these three biological agents, the first
being eco friendly: zero residual toxicity and
total degradability. They are non toxic to humans,
animals, plants and predators of insects. These two
biological agents can be used at all stages of crops.
They promote plant growth and do not lead to
development of resistance in plant pathogens. Some
of them, such as Trichoderma Viride, have also
an effect to help nutrient uptake. Formulated as
living products, these biological agents need some
precautions; they must be applied during evening
hours (cooler temperature), and if conditions are
dry, the field should be irrigated before application.
Chemical fertilisers and insecticides should not be
sprayed 5-7 days before or after, for best results.
Also, these biological products need to be stored in
a cool place away from direct light and heat. Since
these products work primarily in the soil, they are
considered effective on most crops, ranging from

Kartik Laijawala is a Partner with Nico


Orgo Manure.

Mangalore Farmers to get Huge Subsidy


The Horticulture Department will offer subsidy for farmers in Mangalore to introduce drip and
sprinkler irrigation systems for horticulture crops on up to five hectares (ha) of land in its efforts to
conserve water as well as to improve the yield.
While 90 percent subsidy will be offered up to two ha, 50 percent subsidy will be offered to the next
three ha to all farmers in the district, said an official release.
The subsidy would be provided to horticulture crops except coffee, tea and rubber. Fertigation, the
process through which fertiliser is mixed in water before being dispensed to plants, was compulsory
and part of the drip irrigation system, the department said. It said the fertigation would ensure
availability of nutrients to plants without any wastage, and would also save expenditure on fertiliser by
20 to 40 percent, and the cost on labour and electricity.

Business of Agriculture

September-October 2014

37

Agricultural Research
in India: Evolution and
Development

R&D

By Aamir H Kaki

griculture is the backbone of Indian


economy and plays the most
decisive role in the socioeconomic
development of the country.
Agriculture in India is a miscellaneous
and extensive sector that caters to a large
number of actors. India has one of the largest and
institutionally most complex agricultural research
systems in the world. The agricultural research
system in India includes around 27,500 scientists
and more than one lakh supporting staff, actively
engaged in agricultural research. Historically, the
Indian agricultural research system is the pinnacle
of a process which started in the 19th century and
resulted in the establishment of Imperial (now
Indian) Council of Agricultural Research (ICAR) on
the recommendation of a Royal Commission on
Agriculture in 1929. In the current research system,
the ICAR at national level mainly aids, promotes

38 Business of Agriculture | September-October 2014

and coordinates research and education activities in


the country.

Agricultural Research in PostIndependence India


In 1948, there were only 17 agricultural colleges
in the country. It shows that before independence,
higher education in agriculture was almost
ignored. Since Independence, there has been a
substantial growth in the National Agricultural
Research System (NARS). During 1948-49, the
University Education Commission headed by Dr S
Radhakrishnan, suggested that the country should
focus on the establishment of rural universities.
Major HS Singh and AN Jha (Chief Secretary and
Development Commissioner, UP) visited LandGrant Universities of the United States in 1950 and,
advised to set up such a university in Uttar Pradesh
(UP). This event may be regarded as the one, which

led to the initiation of agricultural universities in the


country. In 1955, the first Joint Indo-American Team
was set up, which suggested the founding of rural
universities in each of the States in India.
In the year 1956, a draft for agricultural universities
was prepared and this provided the root for the
proposal by Government of UP to the Central
Government for starting an agricultural university
near Rudrapur in the tarai region of UP. In the year
1959, the second Joint Indo-American Team was
set up. The team submitted its report in 1960. The
team suggested that the agricultural universities
should be autonomous; consist of colleges of
agriculture like veterinary, animal husbandry, home
science, technology, and basic sciences under them;
have inter-disciplinary teaching programmes; and
integrate teaching research extension.

The ICAR as an apex body coordinates research


and promotes inter-institutional research linkages.
Since the ICAR supports SAUs through regular
grants, it has direct participation in the management
of the SAUs. In addition, regional committees were
formed in 1975 to assess the status of research,
extension and education in the ICAR institutes
and the SAUs in the eight regions of the country.
These committees also make recommendations
to undertake research on immediate problems of
a region. Officials from the ICAR, ICAR institutes,
SAUs, State Line Department, Non-Governmental
Organisations (NGOs), members of parliament
and farmers representatives are members of these
committees.

R&D

The first State Agriculture University (SAU)


was established in 1960 at Pantnagar in UP. The
SAUs were given autonomous status and direct
funding from the state governments. They
were autonomous organisations with statewide responsibility for agricultural research,
education and training or extension education.
The establishment of the SAUs, based on a pattern
similar to that of the Land-Grant Universities in the
United States, was a landmark in reorganising and
strengthening the agricultural education system
in India. These universities became the branches
of research under the ICAR and became the
partners of the NARS. The green revolution, with
its impressive socio-economic impact, witnessed
significant contributions from the SAUs, both in
terms of trained, scientific workforce and the
generation of new technologies.

organisations - like the Department of Science and


Technology (DST), Department of Biotechnology
(DBT), Council of Scientific and Industrial Research
(CSIR), Department of Research and Development
Organisation (DRDO), etc - conduct or support
agricultural research directly or indirectly.

Role of Institutions in Agriculture


Research
The SAUs are the major partners in growth and
development of agricultural research and education
under the NARS. All the major states have at least
one SAU, and most of the SAUs are multi-campus
universities. A large number of non-agricultural
universities, government organisations and public
sector undertakings are also involved directly or
indirectly in agricultural research. Some universities,
like Banaras Hindu University, have independent
faculty for agricultural research and education,
while government departments or scientific
Business of Agriculture

September-October 2014

39

R&D

Agricultural
research in
India has an
interesting
history
regarding its
growth and
development. It
started during
the colonial
era and today
the agricultural
research system
is probably the
largest research
system in the
world

After Independence, agricultural research was


given much emphasis which in turn led to increased
agricultural production and near self-sufficiency in
food grains in the country. The greater emphasis
given to the agricultural research could be
established by the fact that the system guided by
the ICAR now has:








49 ICAR institutes;
17 National Research Centers;
Six Bureaux;
25 project directorates;
79 All India Coordinated Research Projects and
AINPs;
607 Krishi Vigyan Kendras;
52 State Agricultural Universities;
One Central Agricultural University;
Four Central Universities having Faculty of
Agriculture.

In addition, some other organisations are involved


in agricultural research:
About 23 traditional universities are carrying out
agricultural research;
Scientific organisations such as the Council of
Scientific and Industrial Research (CSIR), and
Bhabha Atomic Research Centre (BARC);
Government departments such as the
Department of Science and Technology and the
Department of Bio-technology;
Private and voluntary organisations;

40 Business of Agriculture | September-October 2014

Scientific societies and institutions like the


National Dairy Development Board which has
been instrumental in transforming the dairy
industry for rural development.

To Conclude
Agricultural research in India has an interesting
history regarding its growth and development.
It started during the colonial era and today the
agricultural research system is probably the largest
research system in the world. In the current
scenario, the ICAR at the national level mainly aids,
promotes and coordinates research and education
activities throughout the country. The research and
education responsibilities at the state level rest with
the SAUs.
In addition to these main streams of research, some
general universities and other agencies like scientific
organisations related to agriculture, government
departments, voluntary organisations, private
institutions etc, participate in the nations research
efforts. The role of NARS in the development of
agricultural research is of great importance within
which all these organisations come.

References: History of agricultural research in India by


Anwesha Borthakur and Pardeep Singh
International Journal of Social Science & Interdisciplinary
Research
Voice of Research

Farmer to
Consumer Initiative

Social Entrepreneur

By Mandar R Walawalkar

or years, in India, there is a set path


for agriculture produce to reach the
consumer. It is through the Agricultural
Produce Market Committee (APMC),
a marketing board established by state
governments of India. In order to facilitate farmers
to sell their produce and get reasonable prices,
APMCs are created in many towns, where farmers
can sell their produce under the supervision

42 Business of Agriculture | September-October 2014

of APMC. Farmers cannot sell their produce


outside this APMC mechanism. This makes them
vulnerable to traders and marketing agents price
manipulations.
If we study the past history of India since
Independance, we will learn the facts that neither
farmer nor consumer have benefitted from
this established mechanism. The farmers were

compelled to sell their produce to the APMCs


spread across the country and directly or indirectly
the traders and marketing agents used to decide
the price of the produce. The result is obvious;
neither the farmer nor the consumer can control
the prices and in bargain though, the consumers
were and are paying higher prices year-by-year.
An out-of-the-box solution is required to change
this situation and then the concept of reaching the
consumer directly needs to be explored.

Farmer to Consumer
Due to rapid urbanisation, land prices are
skyrocketing and due to high input cost, the

To change this scenerio, the concept of group


farming was introduced by some socially active
visionaries in the agriculture sector. Through
this, input and labour costs could be saved to a
great extent. But still, getting fair a price for their
produce was a dream for the farmers. Therefore,
the need of maximising the returns sprouted
the concept of reaching the consumer directly,
avoiding the set APMC route. In Maharashtra, on
experimental basis, some farmer groups were
allowed to sell their produce mainly vegetables
and dairy products directly to consumers in
Pune. The results were encouraging both for the
farmers and consumers. On the basis of the same

Social Entrepreneur

agriculture business is getting costlier day-by-day,


thus, leading the farmers to quit this unprofitable
profession. Even the farmers children are
not getting into this high input and low return
(assumed) profession. Rather, they are preferring
to work in corporate offices, at any level and salary.
The situation is alarming for agribusiness.

experiment, the government changed APMC rules


to allow the farmers to sell their produce directly
to urban consumers.
In the context of the above, we need to understand
the Farmer-to-Consumer initiative. The SWOT
analysis of the initiative needs to be done with a
Business of Agriculture

September-October 2014

43

Social Entrepreneur

free mind to evolve the system and make it more


rewarding for both the beneficiaries farmer and
consumer.

The Advantages
As the name suggests, farmers can reach their
consumers directly, thus creating a bonding effect.
This can lay a strong foundation for the long
relationship ahead. This initiative reduces the final
cost of produce for the consumers, and at the same
time, it increases the output for farmers due to
a reduced number of mediators such as traders,
wholesalers and retailers, and their profit margins.
The benefits of reduced pricing and higher returns
can be enjoyed simultaneously. This is the USP of
this initiative. The initiative is creating a win-win
situation for both the parties which normally is
difficult to achieve in any such process.
Due to less handling, quality of produce can be
maintained. As time is also saved in repetitive
loading and unloading at traders, wholesalers
and retailers ends, this helps in maintaining the
freshness of the produce.
As the learned and health conscious consumers
in the urban areas wish to know more about the
origin of the produce they consume, this initiative
gives them the satisfaction of getting the produce
from the right source instead of blindly buying from
roadside vendors. The produce harvested in not
so fertile land treated with high doses of fertilisers,
or with contaminated water in highly polluted
environments, can cause health issues.

44 Business of Agriculture | September-October 2014

When implemented in a group, this initiative


opens up different avenues and helps in generating
direct or indirect employment opportunities in
the villages, such as loaders/unloaders, grading,
packaging, transport, quality control, delivery
person, marketing, counter sales, exhibitors,
planners, telecallers, customer service executives
and many more.

The Shortfalls
The biggest weakness of this initiative is feared to
be:, if the farmers do the marketing, their focus on
farming will shift from farming to marketing. Though,
there is a valid point in it, it can be overcome by
group activities and rotation of responsibilities.
It is very difficult for marginal or for that matter
individual farmers to implement this initiative as it
becomes very expensive in reaching the customer.
The answer is group activity which will create unity
among like-minded farmers and it is a known fact
that unity is the first step in solving any community
issues and progressing towards a common goal.
It is also feared that, due to this initiative small
retailers will loose their business. However, it is
not true. There is enough business for everyone as
this is a day-to-day and most essentially required
business. Due to the increased competition
between retailers and farmers reaching consumers
directly, both entities will have to be on their toes
in maintain the quality standards, service and most
importantly pricing. In the bargain, the consumer
will have the choice of better alternatives.

In India, we have ample requirements of


agriculture-based commodities. A country with 125
crore consumers and increasing, will never face out
of business situations. This will give the assurance to
the farmers about the assured sale of their produce.
The need of the hour is to reach the target
audience with quality, fair pricing and on time.

Possible Pot Holes in the Road Ahead


The base of this initiative is a strong like-minded
farmer group. They are bound together with a
common goal of reducing the input and maximising
the output. There is an internal supply chain
working in the background. The entire mechanism
of this initiative works as a perfect machine.

Malfunction of any one part of this mechanism can


hamper the entire machine in producing the desired
output. In any machine, wear and tear is normal
and can be overcome with regular cleaning, oiling,
greasing and servicing. Periodic overhauling ensures
smooth functioning of the machine. Likewise, even
the human group work mechanism is required
with counselling, training, motivation, rotation
in responsibilities etc, for smooth functioning. A
strong leader is required to do all such training
and motivation to keep the group progressing. It
mostly depends on the leader as to how the group
becomes successful and prospers in life. Any leader
getting off the track due to personal egos, political
or external pressure, or any other reason can very
well negatively influence the groups performance.

Social Entrepreneur

The Road Ahead

In India, we
have ample
requirements
of agriculturebased
commodities.
A country
with 125 crore
consumers and
increasing, will
never face out
of business
situations. This
will give the
assurance to
the farmers
about the
assured sale of
their produce

Agricultural Disaster Declared for Hawaii County


Federal disaster loans and other assistance will be available for farmers who suffered losses in Hawai
County from the wind, rain, and flooding from Tropical Storm iselle. Hawaii County has been designated
a primary natural disaster area by the US Department of Agriculture, according to members of Hawaiis
congressional declaration.
Agriculture Secretary Thomas Vilsack declared an agricultural disaster after examining loss reports and
determining that agricultural production losses from the storm met eligibility requirements. Hawaii County
farmers have eight months to apply for disaster loans. Preliminary assessments show papaya farmers suffered
more than $50 million in damage and losses from the storm.
Business of Agriculture

September-October 2014

45

All issues among the group members needs to be


handled sensitively. The young members along with
the experienced old guns need to work hand-inhand to make it a grand success.

Different Ways to Implement Farmer to


Consumer

Social Entrepreneur

Farmers Markets: Urban NGOs/Agencies


working in this area can organise such markets
where they bring close, both the farmers and
consumers, at regular intervals such as weekly,
monthly etc.

Internet can
help the
farmers groups
reach their
potential
customers. The
e-commerce is
definitely going
to be the way
people prefer
to shop

Exhibitions: Occasional exhibitions of agricultural


products will help farmers exhibit different varieties
of their produce. With the help of these exhibitions,
farmers can also showcase their handicrafts etc,
to generate extra income and promote local
traditions.

Web-based Selling: The groups may have the


most convenient marketing tool the Internet
at their disposal to reach out to any corner of
the country and the world. Internet can help the
farmers groups reach their potential customers.
The e-commerce is definitely going to be the way
people prefer to shop.

In the Long Run


Being a new way of reaching out to the customers,
lot of insights are required from all including
farmers, consumers, government agencies,
transporters etc. The initiative has to be evolved
based on the time and experiences. The initial
responses and results are very encouraging. This
has to be maintained with the highest quality
standards, timely supply, honesty and integrity
among all concerned with which a new revolution
can be achieved.

Vending Carts: Vehicles displaying the agricultural


produce and motivating the consumers for fresh
purchase are a good initiative. In this channel, the
transport vehicle is used to display the goods and
can be utilised as an advertising tool very effectively.
Home Delivery: Farmers groups can accumulate
orders to generate the demand and accordingly
deliver the orders placed on pre-decided day and
time. In urban areas, where both the husband and
wife are busy in their work life, they have very
limited time to spend with their family. All such
families can save their precious time by pre-booking
their order through a tele call, sms, whatsapp or
even email to get assured door step delivery with
convenience.

Mandar R Walawalkar is a Farmer


and Coordinator. He is coordinating
with different farmer groups to help
them reach the consumers in Mumbai/
Thane. He may be reached at farm.
ecosystems@gmail.com.

NASA Satellite to Assist Farmers Combat Drought


NASA scientists, including one of Indian-origin, have developed a new satellite that can predict the severity
of droughts worldwide and help farmers maximise crop yield.
Currently, there is no ground-or satellite-based global network monitoring soil moisture at a local level.
Farmers, scientists and resource managers can place sensors on the ground, but these only provide spot
measurements and are rare across some critical agricultural areas in Africa, Asia and Latin America. NASAs
Soil Moisture Active Passive (SMAP) satellite mission, scheduled to launch later, will collect the kind of local
data agricultural and water managers worldwide need.

46 Business of Agriculture | September-October 2014

Events
Calender
September
2014

11-14

Agri & Horti Tech


Venue:Vijaya Fair
Grounds, Coimbatore

November
2014

8-9

Jat Expo
Venue:Paragpur,
Jalandhar

November
2014

22-25

CII- Agro
Venue:Chandigarh

February
2015

14-15

Rice Millinl Expo


Venue:New Grain
Market, Karnal

February
2015

11-14

AgriRex
Venue:Chandigarh

February
2015

11-14

Horti Expo
Venue:Chandigarh

Case Study

Mangrove
Restoration
through PPP
By K S Rao

ver the last 30-40 years, half of


the worlds mangrove forests
have been destroyed to make
way for commercial enterprises
such as aquaculture, agriculture
and coastal development. This has devastating
effects on the environment and is believed to be
the most destructive human impact on mangrove
forests and has resulted in depletion and
degeneration of mangrove resources. Mangroves
occupied less than one percent of land worldwide.
Since the December 2004 Tsunami, there has
been a mounting call for re-establishing protective
greenbelts along coastlines.
Due to reduced mangrove cover, coastal regions
have become more vulnerable to natural
calamities; land is becoming infertile and there
is loss of bio-diversity. Mangroves are a group
of salt-tolerant evergreen trees that grow in
tropical and sub-tropical coastal environments.
It is a widely known fact that mangrove forests
can control coastal erosion, help to maintain

48 Business of Agriculture | September-October 2014

coastal ecology and act as a natural barrier against


cyclones and Tsunamis, and contribute to a great
extent towards balancing the marine ecology

and environment. The effectiveness depends on


a number of factors, such as, the density, width,
height, and complexity of the mangrove forest, as

well as the bathymetry of the coastline and other


oceanographic factors.

Benefits of Mangrove Habitat


Mangrove forests are valuable ecosystems, which
are currently extremely undervalued. They require
long-term protection and conservation. Mangroves
provide many benefits to coastal populations in
terms of economic, ecological and environmental
such as:
Erosion Prevention;
Carbon Sequestration;
Nutrient Supply and Regeneration;
Maintenance of Biodiversity (Marine Flora &
Fauna);
Fisheries Production;
Medicinal Use;
Feed for Livestock;
Livelihood Opportunity for Local Communities;
Recycling of Pollutants, Wastewater Treatment
etc;
Birds, Mammals, Wildlife Habitat;
Coastal Protection against Current Abrasion;
Business of Agriculture

September-October 2014

Case Study

Mangrove Restoration activities carried out during 2007 in the vicinity of our Industry

Due to reduced
mangrove
cover, coastal
regions have
become more
vulnerable
to natural
calamities;
land is
becoming
infertile and
there is loss of
bio-diversity.
Mangroves
are a group of
salt-tolerant
evergreen
trees that grow
in tropical
and subtropical coastal
environments

49

Acting as Natural Barriers against Tsunamis and


Cyclones etc;
Eco-tourism Value/Recreational Sites.

Case Study

Mangrove Restoration Project

Since 2009,
Petronet
LNG Limited
had signed
various MoUs
with GEC and
Department
of Forests,
Government
of Gujarat,
towards the
implementation
of the
Mangrove
Restoration
Project

Gujarat has the longest coastline (1650 km), among


other maritime states of India, which includes
diverse marine flora and fauna. Considering the
wider significance of restoration of mangrove
ecosystems from multiple perspectives of
biodiversity conservation as well as their socioeconomic importance to the coastal communities,
the Gujarat Ecology Commission (GEC),
Government of Gujarat, has taken up the project
Restoration of Mangroves in Gujarat (REMAG).
The GEC initiated the community-based Mangrove
Plantations (A Joint Mangrove Management)
concept in which, the local community was involved
as an active partner in mangrove conservation
and management. In fact, the GEC succeeded in
involving both the corporate and public sectors
in mangrove plantation through a unique Public
Private Partnership (PPP) model. Corporate funds
were mobilised and corporates were given the
responsibility for the conservation of this fragile
ecosystem.

Avicennia Marina

Rhizophora Mucronata

Project Objectives
The mangrove restoration project envisages
achieving the important objectives:
To contribute towards increased understanding
and acceptance of the need to protect, conserve
and regenerate mangroves by local communities,
government and coastal industries;
To facilitate capacity building of coastal
communities and government for communitybased mangrove regeneration as part of
integrated coastal zone management.

Petronet LNGs Initiation


Since 2009, Petronet LNG Limited had signed
various MoUs with GEC and Department of
Forests, Government of Gujarat, towards the
implementation of the Mangrove Restoration
Project. With financial aid, through PPP Model,
the implementing authorities had selected
different locations through their baseline survey,
and allocated the area along the Sea Coast based
on their GIS Mapping. As of now, Petronet has

50 Business of Agriculture | September-October 2014

Ceriops Tagal

successfully completed about 850 hectares of


mangrove restoration along the coastline of Gujarat
and soon i.e. by 2015, the company will achieve
close to 1100 hectares of mangrove coverage.

Mangrove Genera
There are three genera of mangroves selected as
per the suitability of the area and to promote the
bio-diversity within that location:
Avicennia Marina;
Rhizophora Mucronata;
Ceriops Tagal;

PLLs contributions on Mangrove Restoration had been presented at ICZM 2011 by Shri KS Rao, Manager (Horticulture), Petronet LNG Limited, Dahej

National and International Presence

The following methods were followed, depending


on the feasibility of the coastal area:

As Petronet LNG is continuously focussing


and maintaining efforts to carry out mangrove
restoration projects, the company has participated
in several National and International Workshops,
which were duly appreciated by all concerned
authorities.

Earthen Mound Plantation: To increase the


plant density, elevated mounds of size 1m x 1m
are prepared by using available clay within the
coastal area. Mangrove seeds will be dibbled
@40-50 seeds/mound.

Case Study

Methods of Mangrove Restoration

Transplantation of Seedlings: The nursery


raised saplings are transplanted on the field with
the spacing of 2m x 2m.
Propagule Plantation: Viviparous seedlings are
directly planted, eg Ceriops Tagal, Rhizophora
Mucronata.

KS Rao is Head Horticulture at


Petronet LNG Limited, Dahej, Gujarat.

Shri KS Rao, Manager (Horticulture), Petronet LNG had presented a paper on Mangrove Restoration through PPP Model at International Workshop (2013), at
Gandhinagar, Gujarat, KS Rao, Head Horticulture, Petronet LNG Limited, Dahej, Gujarat

Business of Agriculture

September-October 2014

51

Case Study

Soil Based Integrated


Management of Flood and
Floodplain Soils
By Dr BB Mishra

lood water is a natural resource and


supports the production systems. So,
our scientific mandate should be to
preferably ban its termination in the
ocean. To undertake the effective
management option in flood and flood plain soils,
conventionally followed soil survey work should
be prioritised. Flood control, as being confined
mainly to civil engineering work, is alone insufficient
while flood relief is merely a merciful consolation
to the victim. The only target is to develop an
integrated management tool from entry point
(dam) to overflowing in the surrounding fields

52 Business of Agriculture | September-October 2014

through sustainable maintenance of the river banks.


Since such floods are predictable as occurring
almost periodically, it cannot be a Tsunami. Such
floods, containing excess water beyond the capacity
of river beds, are a gift of God. Lets make full
utilisation of such flood water drop-by-drop, look
at trade for this huge water, fishery production
in rivers, inter-linking of rivers and transfer it to
drought prone areas. But, ensure the flow of flood
water is continuum on a long-term basis in a given
river system considering whole river length (origin
to termination) as a unit (like Aviral Ganga from
Gangotri to Bay of Bengal). Eco-system, river

direction, flow velocity, depth and volume of river


water during flood.

transport and tourism are additional opportunities.


Floodplain soils are ideal for a second green
revolution in India. Government should make a
commitment towards integrated management
planning in a big way for flood and floodplain soils.

Remote sensing
imageries,
aided with GIS,
may work as a
powerful tool
in locating the
bend angles
including river
network

Lets not allow flood water i.e. excess water


beyond the capacity of a river channel, to move to
the ocean. River basin management must be started
with detailed soil survey, following conventional
tools. To control bank erosion, keep the riverbed
in its susceptible part straight with no bend. The
bend angle should be minimised using conservation
measures and planting vegetation. Remote sensing
imageries, aided with GIS, may work as a powerful
tool in locating the bend angles including river
network. All rivers may be connected selectively
on an altitudinal basis in order to exploit water
resources. Meandering, braiding and ox-bow
formation including changing course of rivers
are all controllable by reshaping the river banks.
Engineering structures are desired to sustain the
river beds, which are dynamically affected by
Business of Agriculture

September-October 2014

Case Study

The watershed in floodplains is different, based on


stratified layers of sediments forming soils. Crop
calendar in such dynamic landform starting with
Saccharum species on sand, a number of small
millets, sweet potatoes, vegetables (including
cucurbits), fruits (like ber), trees (like bamboo,
acacia), major cereals (like maize and wheat,
oilseed like sunflower, mustard, linseed), and
pulses (like chick pea, lentil, phaseolus), in the
active flood plain are preferred. Keeping the land
covered with vegetation (conservation agriculture)
in pre- and post-flood periods following zero
tillage are additional benefits. Integrated farming
including livestock and fisheries is made traditionally
popular. One of the aspiring proposals towards
(i) redistribution of flood water through linking of
rivers or other means to drought prone areas and
so, and (ii) flood water trading to adjoining states
or countries must be undertaken on top priority
by the Government. There must also be a critical
investigation on the shrinking trend of the water
table even in Bihar and possible mitigation approach
through excess flood water in hand.

53

Case Study

Steps to Act and Follow Ahead

The most vital


liability among
management
options is the
clearance of
sediments
deposited in
the river beds

India is a museum of rivers and the flood is its


destiny. Flood water is a natural resource, which
is subject to support the production process.
Mishra et al (1994), Mishra (2000), Mishra et al
(2001), Mishra et al (2002) and Mishra (2006)
characterised floodplain soils. The flood and
its effective management relate to sediment
sequestration and water harvesting as well as
ground water recharge. Most of the rivers in Bihar,
for example, originate from the Himalayas. The
Kosi, for example, moves through Nepal and meet
Bihar around Kusaha (Nepal), where there is a
dam meant virtually for the safeguard of millions of
lives, properties, agriculture and overall amenity.
Therefore, the maintenance of the dam is a must.
Regular monitoring of satellite data in respect of
events causing flood at the dam is mandatory,
besides enforcing mutual cooperation between
Nepal and India. Apprehensions about nature and
severity of flood may be made possible well before
its occurrence using satellite inputs. If the flood
is caused by torrential rain continuing for couple
of days, its severity can be monitored in terms
of management i.e. flood at door. The most vital
liability among management options is the clearance
of sediments deposited in the river beds. The lifted
sediments should be re-deposited on the existing
river banks or on the modified re-structured new
bank sites in order to keep the direction of river
flow straight. For this, delineation of the boundary
for river banks requires a survey option using
satellite imagery for whole river beds. In case
of acute curvature of the river bed, structural
protection using boulders and concrete may be
made to stabilise the river banks. Following the
delineation of river banks, sediment removal from

the river bed should be made in succession and the


lifted sediments should be unloaded on the river
banks. This process is to be made continuous under
a mega project in planned phases to get the desired
edged banks of around 100 m wide preferably in
both sides of the river. To let the Ganges water, for
example, flow naturally, Farakka dam needs to be
re-structured or shifted elsewhere taking whole
Ganga from Gangotri to Bay of Bengal as a unit.
Now, starting from each river side, at least 25 m
width of the edged bank should be utilised for
plantation of agro-forestry of high photosynthetic
demand, whereas the sloping side of the bank
should be packed with boulders and covered with
grass, shrubs and saccharum species (kans) in order

Mode of Flood
Class I: River with excess water within its capacity.
Class II: River full with excess water following seepage and bank erosion.
Class III: River with overflowing water filling the ditches and paleochannels following intense
bank erosion.
Class IV: River with overflow under violent water current causing multiple losses and
casualties.

54 Business of Agriculture | September-October 2014

The agro-forestry (25 m wide) on the edged bank


is followed by 40 m wide highways and 35 m wide
railways on the same 100 m wide edged bank. The
agro-forestry will be cared for and maintained by
the Forest Department, whereas roadways and
railways will be looked after by respective other
concerned departments. Flood Department will
be responsible for maintenance of rivers and for
clearing the deposited sediments in the river bed
through regular monitoring (preferably in five years)
as outlined in the respective planning proposal.
Obviously, different departments would sit together

River is a huge natural resource for fish culture on


a commercial basis. Flood management without
planning for fishing or fish production, is by and
large incomplete. Fisheries in river water are
difficult to manage. However, strategic planning
may facilitate the action plan to be true or close
to reality in successful fish production. The

The removal
of silt/sand
materials from
river beds will
expand the
river volume
tremendously
to accommodate
the excess
water during
flood

Case Study

to avoid any scope of erosion of the edged bank.


Bamboo species are also often planted on each side
of the bank.

to formulate such a mega flood management pilot


project in a given river basin of Bihar. In some
cases as in Kosi river basin, the slope gradient is
considerably high causing severity in sediment load/
deposition in the river bed. In such a situation,
arrangements should be made to construct the
check dams at suitable intervals in order to keep
the water flow steady at desired velocity in the
river bed. While constructing the edged bank with
sediments removed from the river bed, care should
be taken to keep the distributaries or rivulets
undisturbed by making bridges and flyovers for
roads and railways. Besides this, the removal of
silt/sand materials from river beds will expand the
river volume tremendously to accommodate the
excess water during flood. The river will act as a
giant reservoir and restrict water from moving to
ocean and promote lateral underground movement
of water. This is how ground water recharge could
be sustained and harmonised on a long-term basis.
The rail and road transport on the river bank may
contribute to significant gas emission responsible
for climate change. As against this, agro-forestry
of high photosynthetic demand along the water
bodies (river) would considerably promote carbon
sequestration. Such mega projects would further
facilitate Indian commitment to share in carbon
trading significantly in days to come besides
harmonising the regional eco-system in a big way.

Management Tips for Dam with four Critical Components:


A forecasting wing based on satellite imageries/data: EYES
A control, maintenance and monitoring wing: HAND
A planning and construction wing: LEGS
A set rule to recruit management executives from the local flood affected area: MIND/
COMMITMENT

Business of Agriculture

September-October 2014

55

Case Study

managed river bed on its full capacity should be


demarcated at a lengthwise interval of 10 km. At
each demarcation point, width-wise, a concrete
structure should be made with mechanical
arrangement and support to fix metallic nets
(preferably of stainless steel) until the maximum
water level of the river (based on average) is
reached. There must be additional arrangement to
allow boats and steamers to cross the boundary
or compartment in the river, if necessary. Fixing
of metallic nets should be such that fishes in one
compartment (10 km) may not cross the net. The
construction cost would surely be very high at a
glance, but production of fishes would encourage
such planning and execution through participation.
Obviously, such a pilot project must be promoted
under cooperation through government policy.
Commercial fish production would thus run
through cooperative societies designed by the
regional government in which preference must
be given to the adjoining villagers to participate.
As explained in this chapter, a 10 km long and 250
m wide river in one compartment would cover a
water body of 2.5 sq km area or 250 hectares. At
a minimum, fish production of one tonne/hectare/
year would yield 250 tonnes of fishes (250,000 kg)
and an average return of Rs 2.5 crore. Apparently,

56 Business of Agriculture | September-October 2014

this is highly profitable production in the current


situation, if efforts should be made in a positive
understanding with strong commitment through
social participation. However, technical guidance
from the Fishery Department is obvious to
make necessary correction. The integrated flood
management through structural and non-structural
manipulations would thus comprise the following
accomplishments:
Regular monitoring of flood events through
satellite tools;
Maintenance of dam at the entry point and
forecasting of severity in time and space;
Survey activities to delineate the river flow
direction in straight line using satellite imageries
by demarcating the altered river banks;
Construction of concrete structure with
boulders at the delineated acute curvature of
river bank using the engineering and mechanical
inputs;
Removal of sand/silt materials from river bed
and unloading on the demarcated river banks of
100 m on a planned manner;
The sloping side of the ridged banks along
the river is made stable by using boulders and
planting grasses, bushes, shrubs, saccharum
species (kans) and even bamboo;

Integrated flood management thus includes


the major activities as below:
(i) Satellite message for flood events in Nepal;
(ii) Maintenance of dam;

(iii) Delineation of river flow direction;


(iv) Removal of sediments from the river beds;
(v) Edging of river banks using removed sediments;
(vi) Stabilising the river faced sloppy part of the
edged bank;
(vii) Plantation of agro-forestry on edged bank (25 m);
(viii) Construction of highways on edged bank
(40 m);
(ix) Installation of railway track on edged bank
(35 m);
(x) Linking of flood water to drought prone area by
mechanical lifting;
(xi) Fishing in 10 km river apartment by fixing the
metallic nets;
(xii) Cultivation according to land use suitability
(market oriented approach);
(xiii) Mixed farming with livestock;
(xiv) Efforts to adopt conservation agriculture/
organic farming;
(xv) Carbon sequestration and trading options.
Note: This article is in two parts. The second part will be

Case Study

The ridged bank should be used for agroforestry (25 m) followed by highways (40 m) and
railways (35 m) with obvious reasons;
Fish production in the managed river
compartments having a tentative 10 km length
with width-wise metallic nets would be an
aspiring long term activity fetching good price
fishes round the year following their marketing;
The cultivable land adjoining the river banks as
well as surrounding flood plain areas may be
managed as outlined elsewhere;
The sand/silt materials of the river bed, after
removal, may also be used either in filling the
ditches or heavy soil patches (tal land) preferably
to harmonise the soil productivity for cultivation;
Floodplain is characteristic to mixed farming
with livestock in Bihar and needs all possible
care and maintenance in order to sustain
livelihood;
Arrangement is desired to link drought
prone area, mostly south of the Ganga, with
excess flood water by lifting it mechanically in
succession from the altitudinal lows to altitudinal
highs in order to facilitate irrigation during
drought;
Perennial rivers may also be used for transport
(water ways).

published in November-December Edition.

Dr BB Mishra is a Professor-cumChief Scientist and Chairman at Bihar


Agricultural University, Bhagalpur.
He is the Chairperson, A Task Group
of Universal Soil Classification-WG,
International Union of Soil Science. He
may be reached at
bbmsoil@rediffmail.com.

Karnal Farmers get Climate-Smart


Basmati farmers in Karnal district in Haryana are going back to what their forefathers did before the
Green Revolution growing maize. While it is the new varieties and not the old hardy ones, maize
offers an option in view of the plummeting groundwater levels and climate vagaries in the area.
In Birnarayana village in Nilokheri block, Inderjit Singh has been planting maize for the last three
years but has reduced the area from six to one acre. There is no market for maize and the price
is low. The minimum support price is around Rs 1,350, he says. His father grew maize and cotton
many years ago, but maize is looked down upon.
In the olden days, we considered it bad to marry into families which grew maize, he laughs. He
plants an acre of maize as an experiment. The price for basmati and wheat is much higher, but he
admits that maize is a tension-free crop with fewer pests. Maize has a low price compared to rice
and wheat, but could prove an option in the long run.

Business of Agriculture

September-October 2014

57

Agri Finance Consultancy to


Farmers: Crucial to Bridge
the Knowledge Gap
By Anil Patil

Finance

ver the years, India has moved


away from subsistence farming
to commercial farming. Along
with this, the farmer has
transformed into a commercial
entrepreneur from just a grower of food grains.
This change has forced him to make higher
investments for quality seeds, fertilisers, equipment
and automated irrigation, and plant protection
systems. With higher investments, there also
came higher risks. Hence, he has to look for risk
mitigation systems and ideas so that he is
financially safe.
Land, labour and capital are traditionally considered
as factors of production. Under the category
of labour, management also comes in. Often,
in all three segments of economy viz, primary
(agriculture and mining), secondary and tertiary, the
knowledge gap affects success and profitability very

58 Business of Agriculture | September-October 2014

much and more so in the agriculture sector. Hence,


there is a need for external consultancy to bridge
the knowledge gap. The consultants specialises
not only in state-of-the-art technology but also in
commerce, marketing, legal aspects and in event
management.

Role of a Consultant
Essentially, consultant should be a friend,
philosopher and a guide to a farmer. He should
not have any interest in selling his products like
fertilisers, irrigation systems etc. He should
sincerely support the cause of farmers productivity
and profitability.

Unlike in the medical sector, farmers cannot afford


services of plant pathologists, entomologists,
agronomist, horticulturists, etc separately purely
for financial reasons. Hence, a consultant has to
play multiple roles himself and he can consult,
in turn, other subject matter specialists. For the
same reason, consultants should offer end-to-end
services/turnkey services to farmers. Essentially,
entire consultancy services can be further classified
into several sub heads:
Counselling: This is the first and essential part of
consulting. Here, data collection and SWOT analysis
of the entrepreneur happens. Consultants gauge
what solution fits into farmers or agriprenuers
problems. This is more important for the first
generation agriprenuers, who are not aware about
the nuances of agribusiness.

Funding: The third stage of consulting is funding.


Here, based on the feasibility report, a farmer/
agri-entrepreneur approaches commercial banks,
seeking funds. For this, consultants should have
prepared the feasibility report in such a way that
farmer/agri-entrepreneur will not face any hassles
and the funding agency will not find any shortfall
in the information provided, for processing and
sanction of funds. However, if any query is raised by
the funding agency, consultant should pitch in and
offer necessary clarifications.
Execution: At this stage, a consultant has to visit
the location of project, and re-adjust the plan based
on practical necessities. Many new and unexpected
issues like non-availability of certain inputs, new
ideas and seasonal issues may crop up, demanding
continuous re-adjustment from a consultant.
Often to save cost, some entrepreneurs resort to
depending only on the given feasibility report. This
will pose several problems leading to higher risks.
There can be turnkey executions which may be
outsourced to agencies. In such cases, consultants
have to ensure that all components of the project
are as per plan.

Consultants
also have to
revisit all
the issues
of feasibility
reports
to ensure
correctness

Finance

Feasibility: A feasibility report has to be prepared


for understanding technical and financial feasibility
of a given project. The role of a consultant here
doubles as does the role of agriculture subject
matter specialists and a financial consultants. All the
cost parameters and components of agribusiness

have to be listed in the report with the active


participation of farmers. A consultant here has to
contribute the missing links, visualise what fits him,
sizes, farmers investing capacity, economies of
scale, agro climatic suitability, farmers convenience,
capability to manage, market issues like demand
and supply for the produce, seasonality of market,
etc. Consultants also have to revisit all the issues of
feasibility reports to ensure correctness.

Thus, consultancy proves to be an ongoing


continuous process. The services and costs towards
consultancy will be justified by assured and higher
income.

Anil Patil is a post graduate in


horticulture and has nearly 35 years
of experience in technical aspects of
agri projects, agri project financing,
banking, commerce and legal
aspects. Please visit: http://www.
agriprojectsconsultants.com
Business of Agriculture

September-October 2014

59

India: An Agrarian Country


India has got diverse agro-climatic conditions
(a total of 127 agro-climatic zones have been
identified in India under National Agriculture
Research Project NARP, based on a
comprehensive research review of each state),
which is suitable for almost all types of crops
like cereals, oilseeds, pulses, commercial crops,
horticultural crops, plantation crops, fodder crops
etc. Agriculture and allied services contribute about
18.5 percent to Indias GDP and employ about 58
percent of the workforce. This account for 10.95
percent of Indias exports and about 46 percent of
Indias geographical area is under agricultural sector.

The Issue: Fragmented Supply Chain in


Agri and Allied Sectors

Finance

Supply chains are mainly concerned with the


flow of products and information between supply

chain member organisations - procurement of


materials, transformation of materials into finished
products, and distribution of those products to end
customers. Todays information-driven integrated
supply chains are enabling organisations to reduce
inventory and costs, add product value, extend
resources, accelerate time to market, and retain
customers. The agri supply chain system of the
country is determined by different issues like
dominance of small/marginal farmers, fragmented
supply chains, absence of scale economies, low
level of processing/value addition, inadequacy of
marketing infrastructure etc. Addressing the issues
of fragmented supply chains require coordinated
efforts from all the stakeholders of agri and allied
sectors. At every segment of supply chain, value
needs to be created and added by farmers, input
suppliers, transporters, infrastructure operators,
market intermediaries etc, so that consumers will

Agriculture Consultancy Services

Strengthening and Transforming Agribusiness


By Manoj Singh

60 Business of Agriculture | September-October 2014

Finance

Business of Agriculture

September-October 2014

61

Finance

There is an
urgent need
to develop the
entrepreneurial
and
organisational
competency of
farmers through
interventions at
various levels
of the supply
chain so as to
improve the
socio-economic
status of
farmers and
making farming
attractive
and business
oriented for
farmers

get quality produce at affordable prices and every


stakeholder will get their dues including farmers.

strengthen the supply chain of agriculture and allied

Amongst the value chain stakeholders, the plight


of farmers is well known in Indian context due to
which farming is not considered as a profitable
preposition (as per National Sample Survey
Organisation - NSSO survey, 37 million people left
agriculture during the period 2004-05 and 201112). The Indian farmers are indebted (a NSSO
report on Indebtedness of Farmers Household
has reported that out of 89.35 million farmer
households, about 43.42 million - 48.6 percent were indebted) and suicide rate amongst them is
on the rise (around 46 farmers suicides each day,
on an average). Though Government of India (GoI)
is making every effort to improve the condition of
Indian farmers through its various schemes in terms
of providing subsidies, capacity building and training
programmes, mission programmes etc, but still the
impact of these programmes is yet to be realised by
a large number of farmers. In order to improve the
income levels of farmers, there is an urgent need to

Farmers as Entrepreneurs:
FARMERPRENEUR

62 Business of Agriculture | September-October 2014

sectors at all levels (from farm-to-consumer).

Under Indian conditions, farmers are considered


as a supplier of raw material only, who operate
in a tightly constrained and regulated, complex
and multi-faceted environment conditions, which
act as a significant barrier to entrepreneurial
activity. There is an urgent need to develop the
entrepreneurial and organisational competency
of farmers through interventions at various levels
of the supply chain so as to improve the socioeconomic status of farmers and making farming
attractive and business oriented for farmers. There
is also a knowledge gap in terms of direct linkages
of farmers with supply chain components (inputs/
finance/extension services/markets see Figure 1).
In order to fulfil this gap, interventions are required
at various levels of the supply chain in agri and
allied sectors.

Strengthening Supply Chain Management


through Interventions/Agribusiness
Consulting Services at various levels of
FARM-TO-FORK
Average farmers in India go for farming without
any farm plan and there is little awareness about
quality seeds and issues such as indiscriminate use
of various inputs whether it is fertilisers, pesticides
etc, non availability of labourers, water scarcity for
irrigation, difficulty in accessing farm credit from
formal sources, poor post-harvest knowledge,
inadequate post-harvest infrastructure, poor
knowhow of commodities market information,
etc. This hampers the prospects of farmers to go
for a profitable farm enterprise. Addressing these
concerns requires interventions at various levels.

iii) Farm Equipment and Tools on Rental Basis:


A majority of small and marginal farmers are
dependent on low cost farm labour to keep
their production cost low, but due to nonavailability and an increased cost of labour, it
becomes difficult for them to continue the
farming profession. These farmers are now
looking at mechanisation as the solution. With
this, a new kind of enterprise is growing in
rural areas hiring of farm equipment for
small holdings. There is also a move to create
cooperative agricultural equipment banks.
iv) Addressing Labour Shortage Issue through
Labour Pooling Services: Agricultural labour
availability and cost is a national level issue which
needs immediate attention. Increased rural
to urban migration, government schemes like
MGNREGS etc, lead to shortage of farm labour
and consequently an upward push in agricultural

As per the
Vision 2030
report,
prepared by
the Indian
Institute of
Soil Science,
soil fertility
has dropped
to a third of
what it was 35
years ago due
to nutrient
imbalance

ii) ACABC/Farm Doctors: Every year, more


than 12,000 agriculture graduates pass out of
agricultural universities in India, of which around
20 percent get employed in public and private
sectors. There is a huge scope for the remaining
80 percent to start Agri Clinics & Agri Business
Centres (ACABC) or as Farm Doctors in their
respective areas. Ministry of Agriculture, GoI,
also provides free of cost training to these
graduates to start agribusiness enterprise.
These agri graduates can provide quality seeds,
fertilisers and other input materials to the
farmers through these ACABC. They can also
Business of Agriculture

September-October 2014

Finance

i) Soil Testing Services: Unbalanced use of


fertilisers not only diminishes soil fertility and
raises food prices, but also threatens the health
of millions of rural and urban Indians. As per
the Vision 2030 report, prepared by the Indian
Institute of Soil Science, soil fertility has dropped
to a third of what it was 35 years ago due to
nutrient imbalance. Lack of adequate soil testing
facilities is one of the main reasons that force
farmers to rely on fertiliser dealers for advice
on fertiliser requirements. Therefore, there
is an urgent need to make farmers go for soil
test-based site-specific nutrient management
in the field. This will not only improve the crop
productivity but also save farmers on input cost,
improve soil fertility and also make farmers
aware of the benefits of micro-nutrients such as
Zinc, Iron and Boron. Private Extension Services
offer Soil Testing Services on nominal
payment basis.

assist farmers in terms of knowledge related to


scientific crop production practices, integrated
pest and nutrient management, providing fee
based market information services like IFFCO
Kisan Sansar, Reuters Market Light
Programme, etc.

63

Finance

concerns, providing them adequate knowledge


on farm insurance options, challenges of
climate change and its impact on agricultural
production, contract farming practices, value
addition possibilities and regional, national and
international markets etc.

wages. Services in this regard, could be


provided through labour cooperatives, seasonal
employment to the agri labourers, farm labour
contractor, agri labour pools etc.
v) Capacity Building and Training Services:
Farmers are well capable of doing farm
production on their own or with the support
of agri universities and government extension
services but the present need is to build
their capacities and skills in terms of changing
their attitude from agriculture to agribusiness
through business orientation, addressing
post harvest management and infrastructure

64 Business of Agriculture | September-October 2014

With more and more fragmentation of land,


average land holding of farmers is decreasing
(average size of landholdings has declined from
2.3 hectares in 1970-71 to 1.32 hectares in
2000-01. At this rate the average size will be a
mere 0.68 hectares in 2020). Therefore, there is
a need to organise more and more farmers into

and market later while KMPA (Know Markets


Produce Accordingly) should be the MANTRA
for farmers. Agricultural produce market
information is one of the key parameters for
farm profitability. Currently, there is very little
information dissemination with regards to
weather forecast and market rates on a daily
basis. Though, there are many government
and private market information service
providers, their reach is still at the nascent stage.
Information in terms of multiple buyer options,
commodity specific markets and their demands,
logistics support services, quality standards,
international markets etc, need to be provided
to farmers. Market Support Services through
ICT and social media can play an important role
in reaching a maximum number of farmers.

vi) Agri Market Support Services: Indian


farmers adopt the system of production first

There is an urgent need for improved


multi-sectoral coordination across relevant
government ministries, agencies and other
key stakeholders to usher in agricultural
transformation and improving the socioeconomic conditions of farmers in India. The
government, private sector, farmers and farmer
cooperatives/associations/companies, civil
society, research and academic institutions,
service providers are all important in that crucial
transformation.

Agricultural
produce
market
information is
one of the key
parameters
for farm
profitability

Finance

groups and these groups can set up enterprises


managed as collectives to convert their natural
resources and agri produce to commodities
and products instead of selling off the raw
produce to middlemen who pocket the profit
on its conversion. These Social Enterprises are
termed as Producer Company (after a concept
was introduced in 2002 by incorporating a
new Part IXA, section 581A to 581ZT, into the
Companies Act, 1956), GoI, is promoting these
Producer Companies. Such companies needs to
build up their capacities and trainings should be
imparted to them in areas of aggregation, setting
up post-harvest infrastructure and exploring
national and international markets for their
commodities and products etc.

Manoj Singh is Managing Director CAS Agribusiness Services at Chandel


Agritech Solutions Pvt Ltd, New Delhi.
He may be reached at
chandelagro@gmail.com.

Good Crops, Low Prices Mark Start of Corn Harvest


The five round steel grain bins at Randy Smalls farm in southeast Kansas are nearly full, and farmers have
dumped about a half-million bushels of corn on the ground at the local grain elevator because it lacks
enough storage room to hold it all.
Plus, this years harvest has barely even begun on the bountiful fields of corn, bolstered by timely rains. A
government report released this week estimated seven percent of Kansas corn had been cut as of the end
of August, mostly in southeast Kansas.

Business of Agriculture

September-October 2014

65

INTERNATIONAL

BRICS Agriculture
Trade Jumps Manifold;

Trends Reveal Healthy Cooperation


By Abhirup Bhunia

lobal agricultural production grew


at an average rate of 2.1 percent
between 2003 and 2012 and the
share of developing countries in
production increased considerably
during this period. The rate of growth of global
production of agricultural goods has generally
shown a greater increase than the rate of growth
of trade in those products, arising out of the
natural propensity to produce food primarily for
local consumption. However, agricultural trade still
is an important constituent of world trade.

66 Business of Agriculture | September-October 2014

It is expected that, by 2022, developing countries


are going to account for the majority of exports
of coarse grains and rice, among other agricultural
goods. Already, big emerging economies are
cornering large parts of global agricultural trade.
Interesting trends in agricultural trade have, in
fact, emerged between BRICS countries in the last
four years, since the emergence of the grouping;
however much of it has gone unnoticed. This
is important as the third meeting of the BRICS
agriculture ministers last year in South Africa
noted, among other things, that cooperation in

International

agricultural trade and investment is going to be


vital for mutual development, going forward. The
growing agricultural bonhomie among the BRICS
countries is largely reflected in trade in the two
most important staples rice and wheat.
Wheat was the third most traded agricultural
product in 2010. Three of the worlds largest wheat
producers are BRICS nations, China being the
leading producer, followed by India (second) and
Russia (fifth). Meanwhile in Brazil, both production
and consumption of wheat has been on the increase

for some time now. However in South Africa,


the latest entrant into BRICS, wheat production
has been consistently falling short of domestic
consumption since production suffered massively
in 2006-07. Indeed, production in South Africa is
suffering from a 20-year decline, mainly due to low
prices, which has urged farmers to switch to other
farm products like rapeseed, oats or livestock.
Consequently, South Africas imports from BRICS
partners, particularly Brazil and Russia, have grown
significantly (see Table 1 & 2). Wheat remains one
of the staples in the South African diet.

Business of Agriculture

September-October 2014

67

Table 1: Brazils Wheat Exports to


South Africa

Table 2: Russias Wheat Exports to


South Africa

Year

Volume
(Tonnes)

% of Total SA
Import

Year

Volume
(Tonnes)

% of Total SA
Imports

2008

2008

2009

50,146

3.81

2009

2010

135,127

10.72

2010

2011

90,851

4.91

2011

142,795

7.72

2012

320,396

18.86

2012

104,858

6.17

INTERNATIONAL

Source: International Trade Center Database & Authors Calculations

India continues
to be a major
rice exporting
country and
is the second
largest
producer of
rice (China
being the
leader). India
shipped out
10.3 million
tonnes of rice
in 2012, which
represented
a little over
a quarter of
world rice
exports of 38.6
mt during that
year

Importantly, while the share of BRICS in South


Africas total wheat imports was zero percent in
2008, the share rose to more than 25 percent
in 2012, most of it led by Brazil and Russia. This
is because while India is the worlds fifth largest
wheat exporter, South Africa is not a statistically
considerable destination for its wheat exports.
Likewise, China despite being the largest producer
is not among the top 10 exporting countries.
Barring a ban in Russia on wheat exports in August,
2010 (which is now lifted), following severe drought
and heat waves that had hurt its production, wheat
trade between BRICS nations has grown steadily.
Brazils wheat exports to South Africa grew almost
six times since 2008, indicating a phenomenal rise
in bilateral trade. Interestingly, Brazil only began to
export wheat to China in 2009, while Russia first
exported wheat to China as late as 2011.
Rice is one of the worlds most important
agricultural commodities, particularly in the Asian

68 Business of Agriculture | September-October 2014

context. Ninety percent of the worlds production


and consumption of rice occurs in Asia. And with
China and India two Asian giants accounting
for a lions share of BRICS GDP, trade in rice
merits scrutiny in this context. But it is important
to note that global rice trade accounts for around
6.5 percent of its consumption, compared to 18
percent in the case of wheat.
India continues to be a major rice exporting country
and is the second largest producer of rice (China
being the leader). India shipped out 10.3 million
tonnes of rice in 2012, which represented a little
over a quarter of world rice exports of 38.6 mt
during that year. Indias BRICS partner, South Africa
has grown to be a sizeable export market for Indian
rice. The phenomenal rise in Indias share of total
South Africa rice imports from 4.74 percent in
2008 to 30.52 percent in 2012 is testimony to
growing food commodity trade between BRICS
(Figure 1). South Africa, in fact, imported around

35 percent of its total rice from BRICS partners


in 2012 while the share in 2008 was around six
percent. South Africa, by virtue of it being a waterscarce country, does not grow rice commercially. It
has a zero percent self-sufficiency ratio and sources
all its consumption needs from the international
market. Although China is the largest producer
of rice, the crop has been a major instrument of
achieving food security in the billion plus country
and thus it is not exported as much.

BRICS countries have just concluded their sixth


summit in Fortaleza and the announcement of
the New Development Bank has hogged the
limelight right throughout. This is justified given the
enormous implications the Bank has for the world
order, and for economic development in the global
South. In the meantime, the relatively unnoticed,
but growing intra-BRICS trade in food, among
other commodities, (notably energy, which unlike
in benign agriculture carries with it geopolitical
implications), is in its own way contributing to the
BRICS cohesion as a grouping and its integrational
quality. When the BRICS agricultural ministers
meet next, they might consider this as an important
achievement.

Table 3: Brazils Rice Exports to SA

Abhirup Bhunia is a Research Analyst

Year

Volume
(Tonnes)

% of Total SA
Imports

with the Institute of Economic

2008

8,276

associated with Observer Research

2009

64,112

Foundation, the Indian Official Track II

2010

3,705

2011

85,615

7.72

2012

43,716

6.17

Growth, New Delhi. He was previously

Coordinator at the BRICS Think Tank


Council. He is currently finalising his
book on China-Africa Relations to be published early next
year.

BRICS
countries have
just concluded
their sixth
summit in
Fortaleza
and the
announcement
of the New
Development
Bank has
hogged the
limelight right
throughout

Source: ITC database, Authors calculation

Business of Agriculture

September-October 2014

International

While major markets for Indias rice (basmati and


non-basmati) are Bangladesh, Indonesia, EU, UAE,
among others, the intensification of rice exports to
South Africa, its BRICS partner, is quite remarkable.
The trend shows a sharp spike from 2010 after
a slowdown in 2008-09 and 2009-10. This is
explained by the ban on exports of non-basmati rice
in India in 2008. Table 3 documents the growth of
rice exports from Brazil to South Africa. Nearly five
times growth in volumes have been registered from
2008 to 2012, although there is heavy fluctuation

over the years. These are pretty large numbers


considering that international trade in rice is only
around 38 million tonnes.

69

India-South
America
Trade Ties
INTERNATIONAL

An Insight on Marketing
Agricultural Produce and
Preventing Crop Loss
By Ramesh Kumar Sharma

he smarter ways to market agricultural


produce, namely value addition,
internet & website marketing, cold
room facilities, direct marketing (no
mediation), organic production and adoption of
quality specific crop, are perhaps well known
worldwide. But the question arises; how all these
can contribute to the prevention of crop loss in a
country like India where droughts and floods are
common phenomena, leading to more possibilities
of foods import than export.
For example, recently addressing the group of
South American leaders in Brasilia on July 17,
2014, Indian Prime Minister Narendra Modi
spoke on various issues related to Latin AmericaIndia economic ties. He accepted that trade and
investment between India and Latin America
is below the potential despite the enormous
range of opportunities hydrocarbons, food,
pharmaceuticals, textiles, engineering goods,
automobiles etc. India and Brazil inked three
bilateral agreements in the field of environment
and mobility along with setting up of a Brazilian
earth station receiving data from Indian satellites.
The agreement made a special mention of South

70 Business of Agriculture | September-October 2014

Americas contribution to Indias energy and food


security.
India has been annually importing more than $1
billion worth of soybean and sunflower oil from
Brazil and Argentina. As per statement from Minas
Gerais (Brazilian state) based India-Brazil Chamber
of Commerce (IBCC), metals, crude oil and sugar
make up the vast majority of Brazilian exports to
India. According to Thomson Reuters, India exports
refined diesel, medicines, textiles and plastics
to Brazil. At the same time Leonardo Ananda
Gomes, the executive director of BICC, points out,
One particular interesting possibility for Brazil
is the exportation of processed foods to India.
Brazil is the well known exporter of packaged
non-vegetarian foods, mainly beef and pork, also
supplied to Russia as per BRICS mutual cooperation
policies. But Indias religious sentiments would
never allow such food products in the country.
Then the question arises as to whether Brazil is
planning to export HPP (High Pressure Processed)
vegetables including tomatoes, onions and potatoes
to India. If yes it would enable India, which
frequently faces scarcity of vegetables due to
getting rotten or being hoarded, to stabilise prices

Agricultural Trends: Population Shift,


Smarter Way of Development
Both Brazil and India follow shifting cultivation,
called roca in former and bewar or poda
in latter. Indian agriculture is well known for
production of rice, wheat and other cereals, but
severely faces the hazards of landslides in northern
regions and floods in eastern regions if heavy rainfall
takes place. In southern, middle and western India
heat waves are the major hazards to agriculture
where drought situations frequently occur.
Indian mountain ranges are highly deforested and it
is perhaps the major reason of hazardous climatic
conditions leading to serious crop loss. On the
other hand, Brazilian agriculture is well known for
production of millet, sorghum, barley and potatoes.
Brazil is famous for good quality dairy products and
brilliant stock raising capabilities. Brazilian highlands

International

of food articles provided those are economically


procured from South American countries.

enjoy 25 to 200 centimetres and somewhere even


more annual rainfall with almost no hazards of
landslides, floods and heat waves to agriculture.
But Brazilian agriculture is affected by frequent
forest fires. The whole South America continent,
except Brazil, frequently faces the natural hazards
like earthquakes and volcanoes. It is perhaps due
to existence of dense alpine forests that Brazil does
not face intense earthquakes despite divergent plate
boundaries in Atlantic Ocean in its close vicinity.
Brazilian agriculture, in this way, runs smoothly
while Indian agriculture frequently undergoes
crop losses.
Brazilian mountains are densely forested (of course
not much densely perhaps due to low human
population density 21 persons per sq km) varying
from stock raising Pampas to dense Amazon basin
woods; while Indian mountains are not densely
forested, with severe threat to biodiversity, perhaps
partly due to high population density (around
320 person per sq km slightly above optimum)
Business of Agriculture

September-October 2014

71

INTERNATIONAL

Dairy facts
tell that India
is a better
performer in
milk and milk
products than
Brazil

and mainly due to land mismanagement or nonimplementation of forest policy.


Naturally, Indian agriculture business is likely to
suffer from crop losses and quality deterioration
along with unemployment of farm workers, even
the skilled hands. On the other hand, Brazilian
agriculture business has enormous development
possibilities if its population density rises up to
optimum. Therefore, a shift of agricultural human
resources from high population density countries
like India to low population density countries like
Brazil might be a smarter way for agricultural
development production as well as marketing.

Importation: Smarter Way for Deforested


Countries to Stabilise Food Prices
Brazil can effectively offer sugar, maize, potatoes
and coffee, for which it is well known in the world,
to India. However, sugarcane might be a more
preferred imported commodity for India, instead
of sugar, to run the existing sugar industry and to
safeguard respective employment. The processed
maize products and HPP (high pressure processed)
potatoes, onions, tomatoes and other vegetables
might economically be imported from Brazil and
other South American countries. Dairy facts tell
that India is a better performer in milk and milk
products than Brazil. But fodder might be Indias
major requirement as an imported commodity, if

72 Business of Agriculture | September-October 2014

droughts and floods destroy it. And Brazil might be


a good choice to supply it, if it possesses surplus
fodder after feeding its own livestock. India would
also most probably continue to import soybean and
safflower oil from Brazil.
Indias demands, in context of food security, do
not end at that much only. If monsoon disturbance
continues, looming large year-by-year due to ever
increasing deforestation, the country might lose its
position of rice producer, which has been second
in the world next to China. Similarly, it might lose
wheat production, which has been fourth next to
China, EU and USA.
Price stability is the promise Prime Minister
Narendra Modi made to the people of India. But
the Modi government, perhaps, knows that the way
of cost effective organic agricultural production in
deforested India is almost blocked; therefore the
smarter way to stabilise food prices is importation.

Organic Food Importation and Value


Added Exportation Quite Possible
The supply chain, maintained via importation, can
effectively contribute to price stability, if currency is
not devaluated as a consequence of trade imbalance
by means of increased exports. As such, Modi
Governments priority would be to strengthen
exportation. India has been usually exporting

refined diesel, medicines, textiles, engineering


goods, and plastics. As Prime Minister Narendra
Modi states that India has developed a cost effective
technique of satellite launching and is going to set
up a Brazilian earth station that will receive data
from Indian satellites. He said, India will set up
centres of excellence in Information Technology in
South American countries and extend cooperation
in the areas such as tele-medicine, tele-education,
e-governance, weather forecasting, resource
mapping and disaster management. It is worth
mentioning that western coastal South American
countries frequently face volcano and earthquake
disasters and India can effectively contribute to
disaster management.
As far as the organic food sector is concerned, 100
percent importing and exporting organisations do
exist in this field in India. Value addition is the only
key for exporting a product made of imported raw
material.

Narendra Modi is perhaps the first Indian Prime


Minister to interact with several South American
leaders at one place. The meeting held at Brasilia
was arranged by Brazilian Prime Minister Dilma
Rouseff in which leaders of Argentina, Venezuela,
Ecuador, Colombia, Peru, Uruguay and Paraguay
participated. India and Brazil inked three bilateral
agreements. It is a common opinion of Brazilian
people that India is a comfortable business partner
in comparison to China and USA. According to
Inspers Professor Dumas Damas, production
cost is rising in China as the country shifts to a

Crop Loss Prevention Techniques Lead to


Smarter Marketing Ways
Although dense forestation is a must for soil
conservation and good climatic conditions, still crop
loss prevention techniques, in India, will lead to
smarter marketing ways even in situation of food
products importations due to floods, droughts
and landslides. These techniques include aseptic
packaging, drying, spray drying, cold storing etc. It
is often said in India that mediation based marketing
is one of the major factors that affect quality and
increased prices of food articles. So clustering of
farmers or direct marketing to consumers is also
considered to be smarter way.

International

Reactions

consumption-led model of economic growth, and


it still makes sense for many Brazilian companies to
outsource their production to avoid extremely high
costs at home. He avers, The time to discover
China has long gone. According to the Director
of BICC, There are untapped opportunities for
Brazilian companies in India. One particularly
interesting possibility for Brazil is the exportation of
processed foods to India. Now supermarkets exist
in India. While Brazilian companies have generally
been slow to explore foreign markets, there are
notable exceptions.

Based On Analysis of India - South America Trade Ties.

Ramesh Kumar Sharma is a Freelance


Writer.

Record US Yields Expected in Corn and Soybeans


Farmers in the United States are expected to produce record-breaking harvests of corn and soybeans this
year, surpassing earlier forecasts. The Agriculture Department revised upward its estimate of this years
corn crop to 14 billion bushels, topping last years record of 13.9 billion. Soybean production also will set
a record, 3.8 billion bushels, the government said.
A bigger corn crop was expected as adequate rain and cool weather created favourable growing conditions.
The abundant harvest has driven prices lower, prompting farmers to build more on-farm storage with aim
of timing sales to maximize profit.
The lower prices will not immediately lower the cost of groceries, analysts said, although they could help
bring down prices of beef and pork since producers will pay less for feed.

Business of Agriculture

September-October 2014

73

NEWS & HAPPENINGS

INTERNATIONAL

China, Bhutan, Peru Agree to


Share Seeds
In the spirit of the International Year of Family and Peasant
Farming, indigenous mountain farmers from China, Bhutan
and Peru have agreed to share seeds in an effort to cope with
global climate change.
They have initiated a unique long-term partnership to share
indigenous crop varieties and knowledge about how to grow
them in different climates and landscapes. This cooperation is
a crucial step in their efforts to maintain resilient biodiverse food systems, seed security and food sovereignty.
This partnership represents a unique alliance forged by indigenous people to overcome the threats to
agriculture and food security in a changing climate, says Alejandro Argumedo, Director of Asociacin ANDES,
one of the event organisers. It also promotes the realisation of farmers rights and strengthens the important
links between agrobiodiversity, cultural heritage and sustainable development.

Arkansas Farmers Lose


Millions Due to Flood
University of Arkansas study finds flooding that began
in late June will lead to millions of dollars in lost crop
value for Arkansas farmers.

California Drought Sends


Hay Prices Soaring
The cost of feeding horses and cows in California is
climbing as the drought sends hay prices to historic
highs, a newspaper reported. Less rain has reduced
the acres of oats, barley and wheat being planted,
which has fueled a sharp jump in hay prices,
according to the Press-Democrat of Santa Rosa.
The drought has also led to a decline in grazing
land, further increasing the demand for hay and
driving up prices. Tracy Underwood of the Santa
Rosa Equestrian Centre said she pays more than
$20 for a bale of hay these days. A decade ago, the
cost was about $9. Underwood said shes growing
her own fodder to cut costs. Im saving $200 a
day on hay costs, she said.
West Santa Rosa dairyman Doug Beretta said he
recently sold 40 milk cows to a dairy in Idaho to
offset the rising cost of hay. When grazing land is
available, he needs about $10,000 worth of hay
every 20 days for his milk cows. When its not,
he goes through a load every 10 days at a cost of
about $30,000 a month.

74 Business of Agriculture | September-October 2014

Farmers in 10 Arkansas counties are expected to


lose more than $35 million in crop value, though the
full extent wont be known until after harvest, the
Arkansas Democrat-Gazette reported.
The University of Arkansas Cooperative Extension
Service study found flooding hit soybean crops the
hardest, with $28.4 million in losses for farmers. Rice
farmers also suffered $5.6 million in losses. Other
crops affected include corn, sorghum and winter
wheat.
Monroe, Poinsett and Woodruff counties were the
most affected, with $4.5 million in losses. The other
counties affected by flooding are Crittenden, Cross,
Prairie, St Francis, Craighead, Jackson and Lee.

Farmers Sue Federal Govt


Over Flooding
The physical scars to farmland, evidence of the
Missouri River flood of 2011, still exist today. The
flooding is prompting more than 200 farmers and
landowners from South Dakota to Missouri to file
a federal lawsuit this month. The suit claims US
Army Corps of Engineers (USACE) violated the Fifth
Amendment.
The basis of our claim is that the US Army Corps of
Engineers, whos in charge of managing the Missouri
River, is they made a decision to take our clients
land, either temporarily or permanently, in order
to protect fish and wildlife and to restore fish and
wildlife habitat, says Edwin H Smith, a partner at
Polsinelli PC, the lead law firm in the case. And they
knew when they did it; they were going to flood our
clients land.

International

He says its similar to a new road cutting across a farm.


When the government takes land for the public good,
like he claims they did with recent floods, those land
owners should be compensated

Michigan Expected to
Produce Huge Apple Crop
It appears therell be an abundance of apples
this fall. The US Apple Association and the
Ag Department are both projecting big crops
in most of the big apple producing regions.
Unfortunately, tough weather conditions this
past winter and summer are causing some
production problems in parts of Michigan, the
nations No 3 apple grower.
This just might be the year for a big apple
crop in Michigan, but for Bryan Bixby with
Bixby Farms, this year isnt exceptional. Its a
fair crop, maybe average. Its a little less than
average, Bixby said.
Bixby says his crop was hit with too much
rain too early. Seventeen inches poured on his
orchard in June. It didnt help July was below
average in the Southwest portion of the state,
averaging eight degrees below normal.
Business of Agriculture

September-October 2014

75

NEWS & HAPPENINGS

INTERNATIONAL

Expansion Plans
for Argentinas Top
Agribusiness Firm
Grupo Los Grobo LLC, Argentinas biggest
agribusiness company, is looking to buy
farm service providers as the industry
consolidates, and may revive plans to sell
shares to fund expansion, its controller said.
Los Grobo will consider rekindling plans to
sell shares in Sao Paulo, shelved in 2011, to
help fund acquisitions and expansion in Latin
America and other countries, Chairman
Gustavo Grobocopatel said. The group may
also raise funds from its existing network of
contacts, he said, adding there is no time-line for raising money.
We have an aggressive growth plan, said Grobocopatel, 53, whose great-grandfather arrived in the Argentine
Pampas in 1915 among Eastern European immigrants known as the Jewish Gauchos, or cowboys. To achieve
it we will need extra capital from a partner or an IPO. Latin America needs a large key company and Los Grobo
should be one of those key players leading the agribusiness industry.

Pushpull Pest Control to Reach


more African Farmers
A farming technology that uses intercropping to repel insect
pests from food crops has been given a new lease of life by a
programme to expand its uptake.

Cotton Sowing Increases


by 9 percent in US
After several years of corn, soybean and
other crops gobbling up acres in the Cotton
Belt, cotton planting increased this year
to 11.37 million acres a nine percent
increase from 2013 in US. Higher acres and
favourable weather have set the stage for
what might be a large crop.
This year, US Department of Agriculture
(USDA) estimates total cotton production
at 17.5 million 480-lb. bales. In 2013,
production reached 12.9 million bales. Yields
are set to average 820 lb per harvested acre,
essentially the same as last year.

76 Business of Agriculture | September-October 2014

The pushpull strategy intercrops cereals with a repellent


plant bordered by an attractive trap plant. For example, maize
can be intercropped with desmodium, which repels (pushes)
pests such as the maize stem borer away from the crop, and
bordered by Napier grass, which lures (pulls) stem borers so
they lay their eggs in the grass instead of the maize.
Napier grass also produces a gummy substance that traps
freshly hatched stem borers so only a few survive to adulthood.
Since its development in 1997, the technique has helped nearly
40,000 farmers in East Africa. Maize yields have increased by
up to 3.5 tonnes per hectare, bringing 300,000 people out of
hunger and poverty, according to the International Centre of
Insect Physiology and Ecology.
The centre has now launched a project to disseminate the
technique more widely and to find new push and pull plants
with drought and temperature tolerance.

GMs Potential in Africa impeded by Dysfunctional Debate


Opportunities to enhance crop yields and reduce poverty in Africa are being lost because of a polarised public
debate on the continent, according to a report released by International Policy Institute Chatham House.
Genetic modification (GM) research projects remain stuck at the field trial stage due to governments fears
keeping the technology from African farmers, it says.
This deadlock of continual field trials has allowed African governments to appease both sides of the GM
debate: proponents are pleased research is done, whereas opponents are satisfied that research has not led
to products on the market, the report says.
Part of the problem is that it is a very one-sided debate. Governments are not doing a good job of providing
reliable information and data that contradicts the misinformation campaigns about GM. Politicians and
policymakers are wary of stepping into the debate, says author Rob Bailey, from Chatham House.

International

Field Schools help Sri


Lankan Farmers Become
Sustainable
Empowering farmers to reduce mosquito
populations and to use less pesticide will reduce
malaria and other vector-borne diseases, according
to a research paper published in the Bulletin of the
World Health Organisation (WHO).
Vector-borne diseases, such as malaria and dengue
fever, are a major public health problem in SouthEast Asia and agricultural practices can contribute
to the health risk, says the WHO.
Use of pesticides increases mosquito resistance
and destroys mosquito predators, leading to an
increase in mosquito numbers and leaving toxic
residues in food crops.
In June 2006, Henk van den Berg and co-authors
evaluated farmer field schools, initiated in Sri
Lanka on a large scale in 2002. They aim to
help farmers manage both agricultural pests and
insect disease vectors, such as malaria-carrying
mosquitoes, with less emphasis on chemical
methods.
The schools included field-based workshops,
at which experts taught farmers about how
mosquitoes, crops, farming practices and the
environment interact, and how to manage the
environment in a more sustainable way. By the
middle of 2006, the project had involved 1000
families from 11 locations in 67 schools, report
the authors.

Indigenous Mountain Farmers


Unite on Climate Change
Farmers from 25 indigenous mountain communities in
10 countries have come together to share traditional
knowledge that could help them to mitigate climate
change and to lobby governments for greater
recognition of their unique knowledge.
The International Network of Mountain Indigenous
Peoples was formed at a workshop in Bhutan earlier
this year. It includes communities from Bhutan, China,
India, Kyrgyzstan, Papua New Guinea, Peru, the
Philippines, Taiwan, Tajikistan and Thailand.
Member communities from Bhutan, China and Peru
had already agreed to exchange seeds at a meeting
held in Peru earlier this year. The agreement was
extended to the other members at the most recent
meeting.
Business of Agriculture

September-October 2014

77

Transportation,
Warehousing, Cold
Storage and Retailing
are vital Agricultural
Services, playing
crucial role in
supplying agriculture
produce to consumer

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