indian agriculture - scientific pub
TRANSCRIPT
Indian Agriculture & Agri-Business Management
ABOUT THE AUTHOR
Dr. Smita S. Diwase M.Sc (Agriculture), MMS, Ph.D
Smita Diwase has done her Masters in Agricultural Meteorology and her Ph.D in Management. She is the recipient of several scholarships and awards including the Indian Council of Agricultural Research (ICAR) Fellowship She has over twenty years of work experience in the field of teaching, training and research at various institutes. She has published two books on Agribusiness Management and several research papers have been accepted for discussion at various national and international forums. She is currently involved in
Agricultural exports: Developing effective backward and forward linkages in the fresh produce market for grapes and pomegranates under the brand name SUNPIKT www.sunpikt.org;
Training and consultancy: This includes organization of events in the field of agriculture on behalf of embassies, trade associations and organisations from different countries such as ADEPTA, France and their Indian counterparts to facilitate sharing of ideas, transfer of technology and promotion of trade.
Outbound agricultural tours & events: International crop specific educational tours are organized to countries that have developed a competitive advantage in terms of production, processing and marketing of specific crops or commodities.
Indian Agriculture & Agri-Business Management
Dr. Smita S. Diwase M.Sc (Agriculture), MMS, Ph.D
Published by:
Scientific Publishers (India) 5 A, New Pali Road, P.O. Box 91 Jodhpur 342 001 (India) E-mail: [email protected] Website: www.scientificpub.com
Branch Office Scientific Publishers (India) 4806/24, Ansari Road, Daryaganj New Delhi - 110 002 (India)
© Author, 2014
All rights reserved. No part of this publication or the information contained herein may be reproduced, adapted, abridged, translated, stored in a retrieval system, computer system, photo-graphic or other systems or transmitted in any form or by any means, electronic, mechanical, by photocopying, recording or otherwise, without written prior permission from the authors/editors and the publishers.
Disclaimer: Whereas every effort has been made to avoid errors and omissions, this publication is being sold on the understanding that neither the editors (or authors of chapters in edited volumes) nor the publishers nor the printers would be liable in any manner to any person either for an error or for an omission in this publication, or for any action to be taken on the basis of this work. Any inadvertent discrepancy noted may be brought to the attention of the publishers, for rectifying it in future editions, if published.
ISBN: 978-81-7233-870-1 eISBN: 978-93-86347-62-6
Printed in India
PREFACE
Agribusiness management has always been challenging in terms of its dependence on climatic factors, seasonality, perishability of produce, localized production, bulky nature and price fluctuations amongst others. It has now become more challenging than ever, in the context of climatic change, natural resource constraints, soaring food prices, food security concerns and globalizat ion. This book aims at providing students of agribusiness, teachers, researchers, professionals and all those interested in the field of agriculture with a broader understanding of agribusiness as a system and the key concepts needed to successfully manage an agribusiness enterprise. It serves as a basis to gain a comprehensive understanding of how the agribusiness system operates and the challenges faced in the movement of food and fiber from the producer to the ultimate consumer.
The first part of the book helps in understanding the context within which agribusinesses operate in India. It focuses on the breadth and scope of agribusiness in India, policy initiatives undertaken by the Indian Government and the legal framework within which they function. The book does not aim at a critical analysis, but at providing the agribusiness entrepreneur with inform-ation on the various programs in place which could be used to his advantage.
The second half deals with the complex network of inter related activities performed on the farm and past the farm gate such as natural resource manage-ment, input management, marketing management, supply chain management and risk management, as well as the institutional linkages needed for the same. It addresses issues relevant to decision making in a rapidly changing, highly competitive market environment led by technological advancement in areas such as information technology and biotechnology. It provides an insight into mana-gement challenges related to rising input costs and shifting consumer preferen-ces. Cases pertaining to the best practices and potential strategies adopted by a few innovative, successful organizations have also been incorporated.
It is hoped that this book succeeds in generating and sustaining interest in this extremely interesting and challenging field of agribusiness.
Dr Smita Diwase
CONTENTS
Chapter 1 Agriculture in India 1-43
Role of Agriculture in the Indian Economy 1
Product Contribution 2
Factor Contribution 8
Market Contribution 9
Land Use and Distribution in India 10
Agricultural Production in India 10
Production of Food Grains and Commercial Crops 11
Agricultural Production of Principal Crops in India (2000-2012)
15
Food Consumption 18
Commercial Crops Production in India 19
Animal Husbandry 20
Agro- Industrial Complexes 27
Food Processing Sector 36
Government Initiatives 38
Quality Assurance, Codex Standards, Research & Promotional Activities
39
Components of Food Safety Schemes 39
Challenges in Indian Agriculture 40
Chapter 2 Indian Agriculture Policy 44-98
National Agriculture Policy, 2000 46
National Seeds Policy, 2002 57
Agricultural Price Policy 63
National Food Processing Policy 66
The Foreign Trade Policy 69
viii Indian Agriculture & Agri-Business Management
Marine Fishing Policy 87
National Food and Biotechnology Policy 89
National Policy on Handling, Storage and Transportation of Foodgrains
91
National Policy for Farmers, 2007 94
The Nutrient Based Subsidy (NBS) Policy, 2010 95
The National Food Security Bill, 2011 95
New Investment Policy 2012 (NIP-2012) in the Urea Sector 96
Direct Cash Transfer Policy, 2012 96
Policy Shift in Agriculture 97
Chapter 3 Programmes and Schemes 99-162
Schemes related to Natural Resources Management 100
Schemes related to Crops 104
Schemes related to Horticulture 114
Schemes related to Seeds 120
Schemes related to Fertilisers 125
Schemes related to Plant Protection 126
Schemes related to Machinery 128
Credit Schemes 129
Insurance Schemes 131
Agriculture Marketing Schemes 133
Cooperative Sector Schemes 141
Extension Schemes 143
Food Management Schemes 146
Trade Related Schemes 150
Policy and Plan Schemes 150
Animal Husbandry Schemes 151
Sheep Development Schemes 156
Poultry Development Schemes 157
Piggery Development Schemes 159
Fodder Development Schemes 159
Fisheries Development Schemes 160
Chapter 4 Agribusiness Management 163-184
Agribusiness 163
Contents ix
Agribusiness Network 164
Distinguishing Features of Agribusiness 165
Challenges in Agribusiness 167
Scope of Agribusiness 168
Forms of Organization 169
Agribusiness Management 171
Agribusiness Activities 173
Functional Management in Agribusiness 174
Agribusiness Economics 175
Setting up of an Agribusiness Enterprise 177
Case of Setting up a Corn Wet Milling Project in India 181
Change in Approach 184
Chapter 5 Production Management 185-237
Production Systems 185
Specialization 186
Diversification 186
Natural Resource Management 193
Intensive Agriculture 194
Conservation of Biodiversity 196
Land 196
Water Resources 205
Case of Jain Irrigation Systems Ltd 208
Labour and Agricultural Wages 212
Sustainable Agriculture 213
Cropping Patterns based on Regional Agro-Climatic Planning (RACP)
214
Watershed Management 217
Watershed Management at Ralegan Siddhi 225
Effective Input Usage 227
Organic Farming 227
Global Positioning Systems (GPS) 231
Precision Farming 233
National Mission for Sustainable Agriculture 237
Agricultural Outsourcing 237
x Indian Agriculture & Agri-Business Management
Chapter 6 Input Management 238-336
Agricultural Inputs 238
Fertilisers 241
Changes in Fertilizer (Control) Order, 1985 244
Net Return From Fertilizers 245
Fertilizer Marketing 246
Effective Nutrient Usage 250
Government Intervention 252
Water 253
Integrated Water Resources Management 256
Water Management Principles 257
Agricultural Water Strategy (AWS) 258
Agricultural Water Use Efficiency 260
Irrigation Water-Use Efficiency 262
Integrated Irrigation Management 263
National Watershed Development Project for Rainfed Areas (NWDPRA)
266
Role of Government 270
Seed 273
Seed System 274
Institutional Role 275
The Seeds Act, 1966 276
Seeds (Control) Order, 1983 277
New Policy on Seed Development (NPSD), 1988 277
Protection of Plant Varieties and Farmers’ Rights Authority (PPV&FR), 2001
278
National Seeds Policy, 2002 278
Seeds Bill, 2004 278
National Mission on Seeds 279
OECD Seed Scheme, 2008 280
Amendment to NPSD, 2011 280
Seed Marketing 281
Agro-Chemicals 287
Methods of Pest Management 287
Contents xi
Pest Management Techniques 289
Pesticides Marketing 292
Regulatory Environment 293
Insecticides Act, 1968 293
Strict Regulatory Regime 293
Computerized Online Pesticide Registration System, 2008 294
Quality Testing 295
Accreditation of Pesticide Analysis Laboratories 295
Intensive Pest Surveillance and Management 295
Capacity Building - National Institute of Plant Health Management
296
Plant Quarantine 296
Credit 297
Classification of Credit 298
Institutional Network 301
Flow of Institutional Credit to Agriculture 302
Government Initiatives in Credit Disbursement 303
Kisan Credit Cards 304
Micro Finance Innovations 306
Rural Infrastructure Development Fund (RIDF) 306
Warehouse Receipt Financing 307
Central Financial Assistance 307
Role of Financial Institutions 308
Infrastructure Management 309
Storage Infrastructure 310
Warehousing Infrastructure 311
Storage Capacity in India 312
Central Warehousing Corporation (CWC) 313
State Warehousing Corporations (SWCS) 313
Food Corporation of India 313
National Grid of Godowns 313
Government Intervention 315
Agricultural Machinery 316
Government Intervention 319
National Mission on Agricultural Mechanization (NMAM) 321
xii Indian Agriculture & Agri-Business Management
Constraints in Mechanization 322
Mahindra and Mahindra Ltd: A Case in Mechanization 323
Information 331
Marketing Information 331
Sources of Information 333
Efficient Input Marketing System 334
Input Profitability Analysis 335
Chapter 7 Marketing Management 337-380
Agricultural Marketing in India 337
Government Intervention 338
Model Act’ 2003 340
Direct Marketing 341
Private Markets 342
Special Commodity Markets 344
Farmer’s Markets 345
Contract Farming 346
Land and Credit Markets 346
Agricultural Marketing Management 347
Classification of Agricultural Markets 348
Approaches to Agricultural Marketing 350
Functional Approach 350
Institutional Approach 351
Behavioral Systems Approach 353
Agricultural Marketing System 354
Physical Functions 354
Facilitative Functions 358
Pricing and Exchange Functions 359
Marketing Organization 370
Marketing Strategies 371
Role of Cooperatives in Agribusiness Management: Case of AMUL
372
Market Information System 377
Challenges and Government Intervention 378
Community Agricultural Enterprise 379
Contents xiii
Chapter 8 Supply Chain Management 381-413
Supply Chains 381
Vertical Cooperation 382
Horizontal Relationship 382
Nature of Association 382
Business Processes in the Agribusiness Supply Chain 383
Production 383
Processing/ Manufacturing 383
Wholesaling 384
Retailing 384
Logistics Service Providers 385
Logistics Outsourcing 385
Supply Chains Categories 386
Integrated Supply Chains 387
Supply Networks 388
Temperature Controlled Supply Chains (TCSCS) 388
Contract Farming 388
Factors Determining the nature of Supply Chains 397
Agribusiness Supply Chains in India 399
Meat Supply Chain in India 400
Transnational Meat Supply Chains 403
International Meat Supply Chains 404
Developing the Supply Chain 404
Advantages of Integration 405
Case of Venkateshwara Hatcheries Ltd 406
Success of Supply Chains 412
Chapter 9 Information Management 414-450
Information and Communication Technology (ICT) 415
Agricultural Information Management Through ICT 415
Networking through ICT 415
ICT Applications in Agriculture 416
ICT Application in Agricultural Electronic Commerce (E-Commerce)
418
xiv Indian Agriculture & Agri-Business Management
ICT Application in Agricultural Research, Education and Extension
420
ICT Implementation in Agriculture 423
Market Research Information Network (MRIN) 425
Government Initiatives for ICT Implementation 425
Farmers’ Portal 427
Agmarknet 427
Agrisnet 429
National E-Governance Plan in Agriculture 430
Computerized Online Pesticide Registration System 430
Project Gyandoot 430
Kisan Call Centers 432
Village Knowledge Centers (VKCS) 433
Bhoomi Project 433
Akshaya Project 433
Drishtee 434
Eid Parry 434
Tata Kisan Kendras 435
Akashganga 435
Sustainable Access in Rural India Project (SARI) 436
I-Kisan Agri Portals and Kiosks 436
Integrated Information System for Foodgrains Management 437
Integrated Agro-Met Advisory Service 437
Indian Tobacco Company: A Case 442
Issues to be Addressed 449
Chapter 10 Agriculture Technology 451-467
Varietal Development 451
Remote Sensing 452
Post-Harvest Technology 454
Plant Tissue Culture Technology 455
Biotechnology 455
Biotechnology in Crop Improvement 456
GM Crops 458
Photosynthesis through C3/C4 Systems 458
Contents xv
Bioinformatics 458
National Agricultural Bioinformatics Grid (NABG) 458
Biotechnology in Horticulture 458
Bioactive Components 459
Technology Adoption 460
Monsanto: A Case 460
Applications of Geospatial Techniques in Agriculture 465
Agri Innovate India 467
Chapter 11 Risk Management 468-526
Types of Risk 469
Management of Risk 470
Agriculture Insurance Company of India (AIC) 474
Forward Contracts 481
Futures Markets 482
Futures Trading in India 492
Forward Contracts (Regulation) Act, 1952 494
Organization of Futures Trading 496
Forward Markets Commission 497
Recent Policy Initiatives 499
Commodities in which future trading is being conducted 500
Futures Trading Terminology 503
National Multi Commodity Exchange 509
Commodity Futures Market in India 520
Grain Marketing Strategy: A Case 522
Chapter 12 Institutional Linkages to Agriculture in India 527-
Ministry of Agriculture, GOI 529
Financial Institutions 537
National Bank for Agriculture and Rural Development 544
National Cooperative Development Corporation (NCDC) 559
National Dairy Development Board (NDDB) 561
National Cooperative Union of India (NCUI) 563
Agricultural & Processed Food Products Export Development Authority (APEDA)
567
xvi Indian Agriculture & Agri-Business Management
Indian Council of Agricultural Research (ICAR) 570
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)
589
Food Corporation of India 594
Central Warehousing Corporation 602
National Horticulture Board 605
Central Food Technological Research Institute (CFTRI) 606
Export Promotion Organisations 611