Friday, March 22, 2019

Look at how private sector is helping farmers
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Private firms are involved in 80% of agriculture, through activities like seeds, chemicals, farm machinery, etc. Large firms both domestic and foreign are doing much more.
▬ Domestic firms eg. Tata Group, Mahindras, Ruchi Soya
▬ Foreign firms eg. Cargill, PepsiCo, McCain

Private sector can be farmers' best friend. In recent times, they are working in collaboration to bring best practices, raise yields or lower costs. Firms are devising ways to make farming profitable and rewarding, to give many of 138m farming families a good life. In return, they get a committed bunch of producers who deliver good products in good quantities.

Its very similar to Govt's initiative on Mega food parks with farmer friendly backward linkages, quality produce, assured supply, no middlemen, good logistics (local collection, cold chains, storage, fast logistics), and forward links to wholesalers & consumer markets. Govt gives grants to private firms who manage the whole value chain.

NITI Aayog has outlined agriculture marketing reforms— which are being firmed up with ministry inputs. Govt has strongly pushed for liberalisation with States, though with mixed results. Govt is being urged to bring out legislation or take a hard stance. Reforms are important as they allow private sector to come into agricultural marketing. That edges out middle-men, builds new marketing infra and encourages excellent collaborations.

Must have reforms are:
1) Liberalising APMC - cuts the middle man, to get better prices
2) Private mandis - users, wholesalers buy direct from farmers
3) Digital technology - online buyers, higher productivity, ease of doing farming
4) Lifting of export bans and stock limits — so farmers are not forced to sell cheap in the domestic market

Examples of private sector contribution:
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◘ We now grow mint with just 8 irrigations instead of 11. Water use is down 23% but yields are 68% higher. We save 30% water by modifying the distillation unit. Our farmers grow mint to our high standards.
— Mars Wrigley Confectionery

◘ We weeded out middlemen to improve incomes and motivate our farmers. We now provide technology to farmers through Start-ups.
— Army's Kitchen & Global Agrisystem

◘ Indian farmers receive new varieties, good farming practices, cutting edge technology. We pay well for superior potatoes -- so small and marginal farmers can have a good life.
— PepsiCo India

◘ We pioneered direct seeding tech, so water use for rice is down 30+%. We provide other techs as well. We brought quality palm plantings from Malaysia and trained Indian farmers to grow them. Our farmers need 25% less feed to raise poultry (1.5kg for 1kg bird weight).
— Godrej Agrovet (2m farmers!!)

◘ Our laser levellers for sugar cane fields help to conserve water. We value our farmers traditional skills so we provide small packages of technology to increase yields or make agriculture sustainable. Tech comes from co-opt with international partners.
— DCM Shriram

◘ In our cocoa sustainability program, we provide seedlings, know-how, post harvest processing. We also support Kerala & TN universities to find new varieties, that are much superior in terms of environment, pricing, growing characteristics.
— Mondelez India

◘ Micro-irrigation has raised yields of chillies & bananas by 30-35%. Our grape farmers have raised yields from 3-4 tonnes/ acre to 9-10 t/A!! MeraKisan, e-market start up has removed 6-8 middlemen, so our farmers get 10-15% returns on their investment. We will launch a full fledged digital service.
— Mahindra Agri Solutions

◘ We closely monitor points in the value chain to assess which variation sells. In this way, our farmers are aligned with customer demand, and get good markets or higher share of the retail price.
— ITC Agri & Tech

◘ Among many things, we disperse know-how on seeds, irrigation practices, agri techniques. We also guarantee to buyback of the produce.
— Hindustan Unilever

◘ Our HP apple growers have seen appreciable improvement in quality and price. We pay promptly into banks. We cut middlemen and operate a short, tight distribution. We help farmers to customise through packaging and grading, which is done at farm sites. In this way, we can sell to large buyers and reap profits for our farmers.
— Adani
More in Mylink:
https://plus.google.com/u/0/100789863972538583352/posts/cBsKdbXn9Jj

Private sector to the fore
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PM Modi govt's promise to double farming incomes, will need a big injection of private sector capital and enterprise. NITI Aayog wants govt to remove hurdles, simplify and give incentives so firms can double investments going into contract farming, transport, marketing, warehouses and food processing. India should be an outsourcing hub for global supermarket chains.

Indian states currently allow contract farming only for selective crops. The federal government has sought public comments for a model contract farming act unveiled in December. Higher investments by companies including PepsiCo., Hindustan Unilever Ltd., ITC Ltd., which buy from farmers in some states, could boost incomes faster than govt alone.

NITI Aayog is proposing that States assure market prices for crops important to them. Centre will bear part of States' loss.
https://economictimes.indiatimes.com/news/economy/agriculture/modi-government-looks-for-more-private-capital-in-farms-to-boost-incomes/articleshow/62535949.cms
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